diff --git a/.claude/CLAUDE.md b/.claude/CLAUDE.md
index d4b577c..f7f9e8c 100644
--- a/.claude/CLAUDE.md
+++ b/.claude/CLAUDE.md
@@ -72,8 +72,8 @@ Only update the `Status` field — do not modify any other frontmatter or prompt
 
 <!-- BEGIN:REPO:current-state -->
 ## Current State
-Branch: `fix/lone-surrogate-sanitisation`
-In-progress: Nothing. PR #143 (fix #141, lone surrogate sanitisation) open, auto-merge enabled.
+Branch: `fix/editor-cursor-wrapped-lines`
+In-progress: Nothing. PR #144 (fix #135, cursor navigation in wrapped editor lines) open, auto-merge enabled.
 <!-- END:REPO:current-state -->
 
 <!-- BEGIN:REPO:architecture -->
diff --git a/.claude/sessions/2026-03-29.md b/.claude/sessions/2026-03-29.md
new file mode 100644
index 0000000..c876b3a
--- /dev/null
+++ b/.claude/sessions/2026-03-29.md
@@ -0,0 +1,9 @@
+# Session Log: 2026-03-29
+
+### 00:23 - fix/editor-cursor-wrapped-lines (#135) Stage 2
+
+- Did: Staged and committed wrapped-line cursor fixes from phase 1, pushed branch, created PR #144 with Closes #135, auto-merge enabled. Build and signature checks passed; CodeQL still running.
+- Files: `src/ClaudeCli.ts`, `src/editor.ts`, `src/terminal.ts`
+- Decisions: No architectural decisions. Phase 1 (code changes, type-check, build, test) was completed by the previous session; this session handled commit, push, and PR.
+- Next: Await PR #144 auto-merge.
+- Violations: None
diff --git a/src/ClaudeCli.ts b/src/ClaudeCli.ts
index dfa2b61..776545c 100644
--- a/src/ClaudeCli.ts
+++ b/src/ClaudeCli.ts
@@ -4,6 +4,7 @@ import { resolve } from 'node:path';
 import type { SDKMessage } from '@anthropic-ai/claude-agent-sdk';
 import type { DocumentBlockParam, ImageBlockParam, SearchResultBlockParam, TextBlockParam, ToolReferenceBlockParam } from '@anthropic-ai/sdk/resources';
 import { ExecInputSchema } from '@shellicar/mcp-exec';
+import stringWidth from 'string-width';
 import { AppState } from './AppState.js';
 import { AttachmentStore } from './AttachmentStore.js';
 import { AuditWriter } from './AuditWriter.js';
@@ -658,12 +659,24 @@ export class ClaudeCli {
       case 'right':
         this.editor = moveRight(this.editor);
         break;
-      case 'up':
-        this.editor = moveUp(this.editor);
+      case 'up': {
+        const busyUp = this.appState.phase !== 'idle';
+        const promptUp = this.prompts.isOtherMode ? '> ' : this.commandMode.active ? '🔧 ' : busyUp ? '⏳ ' : '💬 ';
+        const colsUp = process.stdout.columns || 80;
+        const pwUp = stringWidth(promptUp);
+        const prefixWidthsUp = this.editor.lines.map((_, i) => (i === 0 ? pwUp : 2));
+        this.editor = moveUp(this.editor, colsUp, prefixWidthsUp);
         break;
-      case 'down':
-        this.editor = moveDown(this.editor);
+      }
+      case 'down': {
+        const busyDown = this.appState.phase !== 'idle';
+        const promptDown = this.prompts.isOtherMode ? '> ' : this.commandMode.active ? '🔧 ' : busyDown ? '⏳ ' : '💬 ';
+        const colsDown = process.stdout.columns || 80;
+        const pwDown = stringWidth(promptDown);
+        const prefixWidthsDown = this.editor.lines.map((_, i) => (i === 0 ? pwDown : 2));
+        this.editor = moveDown(this.editor, colsDown, prefixWidthsDown);
         break;
+      }
       case 'home':
         this.editor = moveHome(this.editor);
         break;
diff --git a/src/editor.ts b/src/editor.ts
index eb5c9d6..ee0d65b 100644
--- a/src/editor.ts
+++ b/src/editor.ts
@@ -1,10 +1,35 @@
 /**
  * Pure text buffer with cursor management.
- * No I/O — just data manipulation.
+ * No I/O. Just data manipulation.
  */
 
+import stringWidth from 'string-width';
+
 const segmenter = new Intl.Segmenter(undefined, { granularity: 'grapheme' });
 
+/**
+ * Returns the byte offset in `text` where cumulative visual width first reaches
+ * or exceeds `targetWidth`. If `targetWidth` is beyond the end of the text, the
+ * full string length is returned.
+ */
+function byteOffsetAtVisualWidth(text: string, targetWidth: number): number {
+  if (targetWidth <= 0) {
+    return 0;
+  }
+  const segs = [...segmenter.segment(text)];
+  let w = 0;
+  let lastEnd = 0;
+  for (const seg of segs) {
+    const sw = stringWidth(seg.segment);
+    if (w + sw > targetWidth) {
+      break;
+    }
+    w += sw;
+    lastEnd = seg.index + seg.segment.length;
+  }
+  return lastEnd;
+}
+
 export interface CursorPosition {
   row: number;
   col: number;
@@ -157,8 +182,37 @@ export function moveRight(state: EditorState): EditorState {
   return state;
 }
 
-export function moveUp(state: EditorState): EditorState {
+export function moveUp(state: EditorState, columns?: number, prefixWidths?: number[]): EditorState {
   const { lines, cursor } = state;
+
+  if (columns !== undefined && prefixWidths !== undefined) {
+    const pw = prefixWidths[cursor.row];
+    const line = lines[cursor.row];
+    const visualOffset = pw + stringWidth(line.slice(0, cursor.col));
+    const subRow = Math.floor(visualOffset / columns);
+    const termCol = visualOffset % columns;
+
+    if (subRow > 0) {
+      const targetVisual = (subRow - 1) * columns + termCol;
+      const textTarget = Math.max(0, targetVisual - pw);
+      return { lines, cursor: { row: cursor.row, col: byteOffsetAtVisualWidth(line, textTarget) } };
+    }
+
+    if (cursor.row > 0) {
+      const prevRow = cursor.row - 1;
+      const prevPw = prefixWidths[prevRow];
+      const prevLine = lines[prevRow];
+      const prevTotalWidth = prevPw + stringWidth(prevLine);
+      const prevLineSubRows = Math.max(1, Math.ceil(prevTotalWidth / columns));
+      const lastSubRow = prevLineSubRows - 1;
+      const targetVisual = Math.min(lastSubRow * columns + termCol, prevTotalWidth);
+      const textTarget = Math.max(0, targetVisual - prevPw);
+      return { lines, cursor: { row: prevRow, col: byteOffsetAtVisualWidth(prevLine, textTarget) } };
+    }
+
+    return state;
+  }
+
   if (cursor.row > 0) {
     const newCol = Math.min(cursor.col, lines[cursor.row - 1].length);
     return { lines, cursor: { row: cursor.row - 1, col: newCol } };
@@ -166,8 +220,35 @@ export function moveUp(state: EditorState): EditorState {
   return state;
 }
 
-export function moveDown(state: EditorState): EditorState {
+export function moveDown(state: EditorState, columns?: number, prefixWidths?: number[]): EditorState {
   const { lines, cursor } = state;
+
+  if (columns !== undefined && prefixWidths !== undefined) {
+    const pw = prefixWidths[cursor.row];
+    const line = lines[cursor.row];
+    const visualOffset = pw + stringWidth(line.slice(0, cursor.col));
+    const subRow = Math.floor(visualOffset / columns);
+    const termCol = visualOffset % columns;
+    const totalWidth = pw + stringWidth(line);
+    const lineSubRows = Math.max(1, Math.ceil(totalWidth / columns));
+
+    if (subRow + 1 < lineSubRows) {
+      const targetVisual = Math.min((subRow + 1) * columns + termCol, totalWidth);
+      const textTarget = Math.max(0, targetVisual - pw);
+      return { lines, cursor: { row: cursor.row, col: byteOffsetAtVisualWidth(line, textTarget) } };
+    }
+
+    if (cursor.row < lines.length - 1) {
+      const nextRow = cursor.row + 1;
+      const nextPw = prefixWidths[nextRow];
+      const nextLine = lines[nextRow];
+      const textTarget = Math.max(0, termCol - nextPw);
+      return { lines, cursor: { row: nextRow, col: byteOffsetAtVisualWidth(nextLine, textTarget) } };
+    }
+
+    return state;
+  }
+
   if (cursor.row < lines.length - 1) {
     const newCol = Math.min(cursor.col, lines[cursor.row + 1].length);
     return { lines, cursor: { row: cursor.row + 1, col: newCol } };
diff --git a/src/terminal.ts b/src/terminal.ts
index 0493412..240103f 100644
--- a/src/terminal.ts
+++ b/src/terminal.ts
@@ -317,15 +317,17 @@ export class Terminal {
     // Clear any leftover lines from previous render
     output += clearDown;
 
-    // Position cursor within editor
-    this.cursorLinesFromBottom = 0;
-    for (let i = this.editorContent.lines.length - 1; i > this.editorContent.cursorRow; i--) {
-      this.cursorLinesFromBottom += Math.max(1, Math.ceil(stringWidth(this.editorContent.lines[i]) / columns));
-    }
+    // Position cursor within editor.
+    // cursorRow is a terminal row count (accounts for wrapping); editorScreenLines
+    // is the total terminal rows the editor occupies. Rows below cursor = the
+    // difference.
+    this.cursorLinesFromBottom = editorScreenLines - this.editorContent.cursorRow - 1;
     if (this.cursorLinesFromBottom > 0) {
       output += cursorUp(this.cursorLinesFromBottom);
     }
-    output += cursorTo(this.editorContent.cursorCol);
+    // cursorCol is the flat visual offset including prefix. Use modulo to get
+    // the column within the current terminal row when the line wraps.
+    output += cursorTo(this.editorContent.cursorCol % columns);
     output += this.cursorHidden ? hideCursorSeq : showCursor;
 
     this.stickyLineCount = statusScreenLines + attachmentScreenLines + previewScreenLines + questionScreenLines + editorScreenLines;