diff --git a/codex-rs/tui/src/chatwidget.rs b/codex-rs/tui/src/chatwidget.rs
index 9f2295e650..003012439c 100644
--- a/codex-rs/tui/src/chatwidget.rs
+++ b/codex-rs/tui/src/chatwidget.rs
@@ -2666,6 +2666,7 @@ impl ChatWidget {
             }
             self.stream_controller = Some(StreamController::new(
                 self.last_rendered_width.get().map(|w| w.saturating_sub(2)),
+                self.config.cwd.clone(),
             ));
         }
         if let Some(controller) = self.stream_controller.as_mut()
diff --git a/codex-rs/tui/src/markdown.rs b/codex-rs/tui/src/markdown.rs
index 2ea307066b..4acbc1a34e 100644
--- a/codex-rs/tui/src/markdown.rs
+++ b/codex-rs/tui/src/markdown.rs
@@ -1,10 +1,25 @@
 use ratatui::text::Line;
+use std::path::Path;
+
 pub(crate) fn append_markdown(
     markdown_source: &str,
     width: Option<usize>,
     lines: &mut Vec<Line<'static>>,
 ) {
-    let rendered = crate::markdown_render::render_markdown_text_with_width(markdown_source, width);
+    append_markdown_with_cwd(markdown_source, width, None, lines);
+}
+
+pub(crate) fn append_markdown_with_cwd(
+    markdown_source: &str,
+    width: Option<usize>,
+    cwd: Option<&Path>,
+    lines: &mut Vec<Line<'static>>,
+) {
+    let rendered = crate::markdown_render::render_markdown_text_with_width_and_cwd(
+        markdown_source,
+        width,
+        cwd,
+    );
     crate::render::line_utils::push_owned_lines(&rendered.lines, lines);
 }
 
diff --git a/codex-rs/tui/src/markdown_render.rs b/codex-rs/tui/src/markdown_render.rs
index 2bbe19b6f7..80dd689672 100644
--- a/codex-rs/tui/src/markdown_render.rs
+++ b/codex-rs/tui/src/markdown_render.rs
@@ -1,3 +1,4 @@
+use crate::diff_render::display_path_for;
 use crate::render::highlight::highlight_code_to_lines;
 use crate::render::line_utils::line_to_static;
 use crate::wrapping::RtOptions;
@@ -16,7 +17,10 @@ use ratatui::text::Line;
 use ratatui::text::Span;
 use ratatui::text::Text;
 use regex_lite::Regex;
+use std::path::Path;
+use std::path::PathBuf;
 use std::sync::LazyLock;
+use url::Url;
 
 struct MarkdownStyles {
     h1: Style,
@@ -80,10 +84,18 @@ pub fn render_markdown_text(input: &str) -> Text<'static> {
 }
 
 pub(crate) fn render_markdown_text_with_width(input: &str, width: Option<usize>) -> Text<'static> {
+    render_markdown_text_with_width_and_cwd(input, width, None)
+}
+
+pub(crate) fn render_markdown_text_with_width_and_cwd(
+    input: &str,
+    width: Option<usize>,
+    cwd: Option<&Path>,
+) -> Text<'static> {
     let mut options = Options::empty();
     options.insert(Options::ENABLE_STRIKETHROUGH);
     let parser = Parser::new_ext(input, options);
-    let mut w = Writer::new(parser, width);
+    let mut w = Writer::new(parser, width, cwd);
     w.run();
     w.text
 }
@@ -92,9 +104,7 @@ pub(crate) fn render_markdown_text_with_width(input: &str, width: Option<usize>)
 struct LinkState {
     destination: String,
     show_destination: bool,
-    hidden_location_suffix: Option<String>,
-    label_start_span_idx: usize,
-    label_styled: bool,
+    local_display_text: Option<String>,
 }
 
 fn should_render_link_destination(dest_url: &str) -> bool {
@@ -130,6 +140,49 @@ fn is_local_path_like_link(dest_url: &str) -> bool {
         )
 }
 
+fn local_link_display_text(dest_url: &str, cwd: Option<&Path>) -> Option<String> {
+    if !is_local_path_like_link(dest_url) {
+        return None;
+    }
+    let (path, location_suffix) = split_local_link_destination(dest_url)?;
+    let display_path = cwd.map_or_else(
+        || path.display().to_string(),
+        |cwd| display_path_for(&path, cwd),
+    );
+    Some(format!("{display_path}{location_suffix}"))
+}
+
+fn split_local_link_destination(dest_url: &str) -> Option<(PathBuf, String)> {
+    if dest_url.starts_with("file://") {
+        let url = Url::parse(dest_url).ok()?;
+        let path = url.to_file_path().ok()?;
+        let location_suffix = url
+            .fragment()
+            .map(|fragment| format!("#{fragment}"))
+            .and_then(|suffix| normalize_markdown_hash_location_suffix(&suffix))
+            .unwrap_or_default();
+        return Some((path, location_suffix));
+    }
+
+    if let Some((path_part, fragment)) = dest_url.rsplit_once('#')
+        && HASH_LOCATION_SUFFIX_RE.is_match(fragment)
+    {
+        let location_suffix =
+            normalize_markdown_hash_location_suffix(&format!("#{fragment}")).unwrap_or_default();
+        return Some((PathBuf::from(path_part), location_suffix));
+    }
+
+    if let Some(location_match) = COLON_LOCATION_SUFFIX_RE.find(dest_url) {
+        let path_part = &dest_url[..location_match.start()];
+        return Some((
+            PathBuf::from(path_part),
+            location_match.as_str().to_string(),
+        ));
+    }
+
+    Some((PathBuf::from(dest_url), String::new()))
+}
+
 struct Writer<'a, I>
 where
     I: Iterator<Item = Event<'a>>,
@@ -153,13 +206,14 @@ where
     current_subsequent_indent: Vec<Span<'static>>,
     current_line_style: Style,
     current_line_in_code_block: bool,
+    cwd: Option<PathBuf>,
 }
 
 impl<'a, I> Writer<'a, I>
 where
     I: Iterator<Item = Event<'a>>,
 {
-    fn new(iter: I, wrap_width: Option<usize>) -> Self {
+    fn new(iter: I, wrap_width: Option<usize>, cwd: Option<&Path>) -> Self {
         Self {
             iter,
             text: Text::default(),
@@ -180,9 +234,17 @@ where
             current_subsequent_indent: Vec::new(),
             current_line_style: Style::default(),
             current_line_in_code_block: false,
+            cwd: cwd.map(Path::to_path_buf),
         }
     }
 
+    fn suppress_local_link_label(&self) -> bool {
+        self.link
+            .as_ref()
+            .and_then(|link| link.local_display_text.as_ref())
+            .is_some()
+    }
+
     fn run(&mut self) {
         while let Some(ev) = self.iter.next() {
             self.handle_event(ev);
@@ -194,10 +256,26 @@ where
         match event {
             Event::Start(tag) => self.start_tag(tag),
             Event::End(tag) => self.end_tag(tag),
-            Event::Text(text) => self.text(text),
-            Event::Code(code) => self.code(code),
-            Event::SoftBreak => self.soft_break(),
-            Event::HardBreak => self.hard_break(),
+            Event::Text(text) => {
+                if !self.suppress_local_link_label() {
+                    self.text(text);
+                }
+            }
+            Event::Code(code) => {
+                if !self.suppress_local_link_label() {
+                    self.code(code);
+                }
+            }
+            Event::SoftBreak => {
+                if !self.suppress_local_link_label() {
+                    self.soft_break();
+                }
+            }
+            Event::HardBreak => {
+                if !self.suppress_local_link_label() {
+                    self.hard_break();
+                }
+            }
             Event::Rule => {
                 self.flush_current_line();
                 if !self.text.lines.is_empty() {
@@ -206,8 +284,16 @@ where
                 self.push_line(Line::from("———"));
                 self.needs_newline = true;
             }
-            Event::Html(html) => self.html(html, false),
-            Event::InlineHtml(html) => self.html(html, true),
+            Event::Html(html) => {
+                if !self.suppress_local_link_label() {
+                    self.html(html, false);
+                }
+            }
+            Event::InlineHtml(html) => {
+                if !self.suppress_local_link_label() {
+                    self.html(html, true);
+                }
+            }
             Event::FootnoteReference(_) => {}
             Event::TaskListMarker(_) => {}
         }
@@ -231,9 +317,21 @@ where
             }
             Tag::List(start) => self.start_list(start),
             Tag::Item => self.start_item(),
-            Tag::Emphasis => self.push_inline_style(self.styles.emphasis),
-            Tag::Strong => self.push_inline_style(self.styles.strong),
-            Tag::Strikethrough => self.push_inline_style(self.styles.strikethrough),
+            Tag::Emphasis => {
+                if !self.suppress_local_link_label() {
+                    self.push_inline_style(self.styles.emphasis);
+                }
+            }
+            Tag::Strong => {
+                if !self.suppress_local_link_label() {
+                    self.push_inline_style(self.styles.strong);
+                }
+            }
+            Tag::Strikethrough => {
+                if !self.suppress_local_link_label() {
+                    self.push_inline_style(self.styles.strikethrough);
+                }
+            }
             Tag::Link { dest_url, .. } => self.push_link(dest_url.to_string()),
             Tag::HtmlBlock
             | Tag::FootnoteDefinition(_)
@@ -257,7 +355,11 @@ where
                 self.indent_stack.pop();
                 self.pending_marker_line = false;
             }
-            TagEnd::Emphasis | TagEnd::Strong | TagEnd::Strikethrough => self.pop_inline_style(),
+            TagEnd::Emphasis | TagEnd::Strong | TagEnd::Strikethrough => {
+                if !self.suppress_local_link_label() {
+                    self.pop_inline_style();
+                }
+            }
             TagEnd::Link => self.pop_link(),
             TagEnd::HtmlBlock
             | TagEnd::FootnoteDefinition
@@ -513,36 +615,9 @@ where
 
     fn push_link(&mut self, dest_url: String) {
         let show_destination = should_render_link_destination(&dest_url);
-        let label_styled = !show_destination;
-        let label_start_span_idx = self
-            .current_line_content
-            .as_ref()
-            .map(|line| line.spans.len())
-            .unwrap_or(0);
-        if label_styled {
-            self.push_inline_style(self.styles.code);
-        }
         self.link = Some(LinkState {
             show_destination,
-            hidden_location_suffix: if is_local_path_like_link(&dest_url) {
-                dest_url
-                    .rsplit_once('#')
-                    .and_then(|(_, fragment)| {
-                        HASH_LOCATION_SUFFIX_RE
-                            .is_match(fragment)
-                            .then(|| format!("#{fragment}"))
-                    })
-                    .and_then(|suffix| normalize_markdown_hash_location_suffix(&suffix))
-                    .or_else(|| {
-                        COLON_LOCATION_SUFFIX_RE
-                            .find(&dest_url)
-                            .map(|m| m.as_str().to_string())
-                    })
-            } else {
-                None
-            },
-            label_start_span_idx,
-            label_styled,
+            local_display_text: local_link_display_text(&dest_url, self.cwd.as_deref()),
             destination: dest_url,
         });
     }
@@ -550,39 +625,11 @@ where
     fn pop_link(&mut self) {
         if let Some(link) = self.link.take() {
             if link.show_destination {
-                if link.label_styled {
-                    self.pop_inline_style();
-                }
                 self.push_span(" (".into());
                 self.push_span(Span::styled(link.destination, self.styles.link));
                 self.push_span(")".into());
-            } else if let Some(location_suffix) = link.hidden_location_suffix.as_deref() {
-                let label_text = self
-                    .current_line_content
-                    .as_ref()
-                    .and_then(|line| {
-                        line.spans.get(link.label_start_span_idx..).map(|spans| {
-                            spans
-                                .iter()
-                                .map(|span| span.content.as_ref())
-                                .collect::<String>()
-                        })
-                    })
-                    .unwrap_or_default();
-                if label_text
-                    .rsplit_once('#')
-                    .is_some_and(|(_, fragment)| HASH_LOCATION_SUFFIX_RE.is_match(fragment))
-                    || COLON_LOCATION_SUFFIX_RE.find(&label_text).is_some()
-                {
-                    // The label already carries a location suffix; don't duplicate it.
-                } else {
-                    self.push_span(Span::styled(location_suffix.to_string(), self.styles.code));
-                }
-                if link.label_styled {
-                    self.pop_inline_style();
-                }
-            } else if link.label_styled {
-                self.pop_inline_style();
+            } else if let Some(local_display_text) = link.local_display_text {
+                self.push_span(Span::styled(local_display_text, self.styles.code));
             }
         }
     }
diff --git a/codex-rs/tui/src/markdown_render_tests.rs b/codex-rs/tui/src/markdown_render_tests.rs
index 9981246093..d34ed47ddf 100644
--- a/codex-rs/tui/src/markdown_render_tests.rs
+++ b/codex-rs/tui/src/markdown_render_tests.rs
@@ -3,12 +3,18 @@ use ratatui::style::Stylize;
 use ratatui::text::Line;
 use ratatui::text::Span;
 use ratatui::text::Text;
+use std::path::Path;
 
 use crate::markdown_render::COLON_LOCATION_SUFFIX_RE;
 use crate::markdown_render::HASH_LOCATION_SUFFIX_RE;
 use crate::markdown_render::render_markdown_text;
+use crate::markdown_render::render_markdown_text_with_width_and_cwd;
 use insta::assert_snapshot;
 
+fn render_markdown_text_for_cwd(input: &str, cwd: &Path) -> Text<'static> {
+    render_markdown_text_with_width_and_cwd(input, None, Some(cwd))
+}
+
 #[test]
 fn empty() {
     assert_eq!(render_markdown_text(""), Text::default());
@@ -661,106 +667,109 @@ fn load_location_suffix_regexes() {
 
 #[test]
 fn file_link_hides_destination() {
-    let text = render_markdown_text(
-        "[codex-rs/tui/src/markdown_render.rs](/Users/example/code/codex/codex-rs/tui/src/markdown_render.rs)",
+    let text = render_markdown_text_for_cwd(
+        "[ignored label](/Users/example/code/codex/codex-rs/tui/src/markdown_render.rs)",
+        Path::new("/Users/example/code/codex"),
     );
     let expected = Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs".cyan()]));
     assert_eq!(text, expected);
 }
 
 #[test]
-fn file_link_appends_line_number_when_label_lacks_it() {
-    let text = render_markdown_text(
+fn file_link_uses_target_path_relative_to_cwd() {
+    let text = render_markdown_text_for_cwd(
         "[markdown_render.rs](/Users/example/code/codex/codex-rs/tui/src/markdown_render.rs:74)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from(Line::from_iter([
-        "markdown_render.rs".cyan(),
-        ":74".cyan(),
-    ]));
+    let expected = Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs:74".cyan()]));
     assert_eq!(text, expected);
 }
 
 #[test]
-fn file_link_uses_label_for_line_number() {
-    let text = render_markdown_text(
+fn file_link_ignores_label_when_rendering_visible_target() {
+    let text = render_markdown_text_for_cwd(
         "[markdown_render.rs:74](/Users/example/code/codex/codex-rs/tui/src/markdown_render.rs:74)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from(Line::from_iter(["markdown_render.rs:74".cyan()]));
+    let expected = Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs:74".cyan()]));
     assert_eq!(text, expected);
 }
 
 #[test]
-fn file_link_appends_hash_anchor_when_label_lacks_it() {
-    let text = render_markdown_text(
+fn file_link_normalizes_hash_anchor_for_terminal_clickability() {
+    let text = render_markdown_text_for_cwd(
         "[markdown_render.rs](file:///Users/example/code/codex/codex-rs/tui/src/markdown_render.rs#L74C3)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from(Line::from_iter([
-        "markdown_render.rs".cyan(),
-        ":74:3".cyan(),
-    ]));
+    let expected = Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs:74:3".cyan()]));
     assert_eq!(text, expected);
 }
 
 #[test]
-fn file_link_uses_label_for_hash_anchor() {
-    let text = render_markdown_text(
+fn file_link_ignores_hash_anchor_label() {
+    let text = render_markdown_text_for_cwd(
         "[markdown_render.rs#L74C3](file:///Users/example/code/codex/codex-rs/tui/src/markdown_render.rs#L74C3)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from(Line::from_iter(["markdown_render.rs#L74C3".cyan()]));
+    let expected = Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs:74:3".cyan()]));
     assert_eq!(text, expected);
 }
 
 #[test]
-fn file_link_appends_range_when_label_lacks_it() {
-    let text = render_markdown_text(
+fn file_link_shows_range_from_target() {
+    let text = render_markdown_text_for_cwd(
         "[markdown_render.rs](/Users/example/code/codex/codex-rs/tui/src/markdown_render.rs:74:3-76:9)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from(Line::from_iter([
-        "markdown_render.rs".cyan(),
-        ":74:3-76:9".cyan(),
-    ]));
+    let expected =
+        Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs:74:3-76:9".cyan()]));
     assert_eq!(text, expected);
 }
 
 #[test]
-fn file_link_uses_label_for_range() {
-    let text = render_markdown_text(
+fn file_link_ignores_range_label() {
+    let text = render_markdown_text_for_cwd(
         "[markdown_render.rs:74:3-76:9](/Users/example/code/codex/codex-rs/tui/src/markdown_render.rs:74:3-76:9)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from(Line::from_iter(["markdown_render.rs:74:3-76:9".cyan()]));
+    let expected =
+        Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs:74:3-76:9".cyan()]));
     assert_eq!(text, expected);
 }
 
 #[test]
-fn file_link_appends_hash_range_when_label_lacks_it() {
-    let text = render_markdown_text(
+fn file_link_normalizes_hash_range() {
+    let text = render_markdown_text_for_cwd(
         "[markdown_render.rs](file:///Users/example/code/codex/codex-rs/tui/src/markdown_render.rs#L74C3-L76C9)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from(Line::from_iter([
-        "markdown_render.rs".cyan(),
-        ":74:3-76:9".cyan(),
-    ]));
+    let expected =
+        Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs:74:3-76:9".cyan()]));
     assert_eq!(text, expected);
 }
 
 #[test]
 fn multiline_file_link_label_after_styled_prefix_does_not_panic() {
-    let text = render_markdown_text(
+    let text = render_markdown_text_for_cwd(
         "**bold** plain [foo\nbar](file:///Users/example/code/codex/codex-rs/tui/src/markdown_render.rs#L74C3)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from_iter([
-        Line::from_iter(["bold".bold(), " plain ".into(), "foo".cyan()]),
-        Line::from_iter(["bar".cyan(), ":74:3".cyan()]),
-    ]);
+    let expected = Text::from(Line::from_iter([
+        "bold".bold(),
+        " plain ".into(),
+        "codex-rs/tui/src/markdown_render.rs:74:3".cyan(),
+    ]));
     assert_eq!(text, expected);
 }
 
 #[test]
-fn file_link_uses_label_for_hash_range() {
-    let text = render_markdown_text(
+fn file_link_ignores_hash_range_label() {
+    let text = render_markdown_text_for_cwd(
         "[markdown_render.rs#L74C3-L76C9](file:///Users/example/code/codex/codex-rs/tui/src/markdown_render.rs#L74C3-L76C9)",
+        Path::new("/Users/example/code/codex"),
     );
-    let expected = Text::from(Line::from_iter(["markdown_render.rs#L74C3-L76C9".cyan()]));
+    let expected =
+        Text::from(Line::from_iter(["codex-rs/tui/src/markdown_render.rs:74:3-76:9".cyan()]));
     assert_eq!(text, expected);
 }
 
@@ -778,8 +787,9 @@ fn url_link_shows_destination() {
 
 #[test]
 fn markdown_render_file_link_snapshot() {
-    let text = render_markdown_text(
+    let text = render_markdown_text_for_cwd(
         "See [markdown_render.rs:74](/Users/example/code/codex/codex-rs/tui/src/markdown_render.rs:74).",
+        Path::new("/Users/example/code/codex"),
     );
     let rendered = text
         .lines
diff --git a/codex-rs/tui/src/markdown_stream.rs b/codex-rs/tui/src/markdown_stream.rs
index 6ac457eee2..94ec9b035f 100644
--- a/codex-rs/tui/src/markdown_stream.rs
+++ b/codex-rs/tui/src/markdown_stream.rs
@@ -1,4 +1,5 @@
 use ratatui::text::Line;
+use std::path::PathBuf;
 
 use crate::markdown;
 
@@ -8,14 +9,16 @@ pub(crate) struct MarkdownStreamCollector {
     buffer: String,
     committed_line_count: usize,
     width: Option<usize>,
+    cwd: Option<PathBuf>,
 }
 
 impl MarkdownStreamCollector {
-    pub fn new(width: Option<usize>) -> Self {
+    pub fn new(width: Option<usize>, cwd: Option<PathBuf>) -> Self {
         Self {
             buffer: String::new(),
             committed_line_count: 0,
             width,
+            cwd,
         }
     }
 
@@ -41,7 +44,7 @@ impl MarkdownStreamCollector {
             return Vec::new();
         };
         let mut rendered: Vec<Line<'static>> = Vec::new();
-        markdown::append_markdown(&source, self.width, &mut rendered);
+        markdown::append_markdown_with_cwd(&source, self.width, self.cwd.as_deref(), &mut rendered);
         let mut complete_line_count = rendered.len();
         if complete_line_count > 0
             && crate::render::line_utils::is_blank_line_spaces_only(
@@ -82,7 +85,7 @@ impl MarkdownStreamCollector {
         tracing::trace!("markdown finalize (raw source):\n---\n{source}\n---");
 
         let mut rendered: Vec<Line<'static>> = Vec::new();
-        markdown::append_markdown(&source, self.width, &mut rendered);
+        markdown::append_markdown_with_cwd(&source, self.width, self.cwd.as_deref(), &mut rendered);
 
         let out = if self.committed_line_count >= rendered.len() {
             Vec::new()
@@ -101,7 +104,7 @@ pub(crate) fn simulate_stream_markdown_for_tests(
     deltas: &[&str],
     finalize: bool,
 ) -> Vec<Line<'static>> {
-    let mut collector = MarkdownStreamCollector::new(None);
+    let mut collector = MarkdownStreamCollector::new(None, None);
     let mut out = Vec::new();
     for d in deltas {
         collector.push_delta(d);
@@ -122,7 +125,7 @@ mod tests {
 
     #[tokio::test]
     async fn no_commit_until_newline() {
-        let mut c = super::MarkdownStreamCollector::new(None);
+        let mut c = super::MarkdownStreamCollector::new(None, None);
         c.push_delta("Hello, world");
         let out = c.commit_complete_lines();
         assert!(out.is_empty(), "should not commit without newline");
@@ -133,7 +136,7 @@ mod tests {
 
     #[tokio::test]
     async fn finalize_commits_partial_line() {
-        let mut c = super::MarkdownStreamCollector::new(None);
+        let mut c = super::MarkdownStreamCollector::new(None, None);
         c.push_delta("Line without newline");
         let out = c.finalize_and_drain();
         assert_eq!(out.len(), 1);
@@ -253,7 +256,7 @@ mod tests {
     async fn heading_starts_on_new_line_when_following_paragraph() {
         // Stream a paragraph line, then a heading on the next line.
         // Expect two distinct rendered lines: "Hello." and "Heading".
-        let mut c = super::MarkdownStreamCollector::new(None);
+        let mut c = super::MarkdownStreamCollector::new(None, None);
         c.push_delta("Hello.\n");
         let out1 = c.commit_complete_lines();
         let s1: Vec<String> = out1
@@ -309,7 +312,7 @@ mod tests {
         // Paragraph without trailing newline, then a chunk that starts with the newline
         // and the heading text, then a final newline. The collector should first commit
         // only the paragraph line, and later commit the heading as its own line.
-        let mut c = super::MarkdownStreamCollector::new(None);
+        let mut c = super::MarkdownStreamCollector::new(None, None);
         c.push_delta("Sounds good!");
         // No commit yet
         assert!(c.commit_complete_lines().is_empty());
diff --git a/codex-rs/tui/src/snapshots/codex_tui__markdown_render__markdown_render_tests__markdown_render_file_link_snapshot.snap b/codex-rs/tui/src/snapshots/codex_tui__markdown_render__markdown_render_tests__markdown_render_file_link_snapshot.snap
index 1b1f1210f4..73d2e21e6b 100644
--- a/codex-rs/tui/src/snapshots/codex_tui__markdown_render__markdown_render_tests__markdown_render_file_link_snapshot.snap
+++ b/codex-rs/tui/src/snapshots/codex_tui__markdown_render__markdown_render_tests__markdown_render_file_link_snapshot.snap
@@ -1,6 +1,6 @@
 ---
 source: tui/src/markdown_render_tests.rs
-assertion_line: 714
+assertion_line: 776
 expression: rendered
 ---
-See markdown_render.rs:74.
+See codex-rs/tui/src/markdown_render.rs:74.
diff --git a/codex-rs/tui/src/streaming/controller.rs b/codex-rs/tui/src/streaming/controller.rs
index 6117485adf..9c57bf0aa9 100644
--- a/codex-rs/tui/src/streaming/controller.rs
+++ b/codex-rs/tui/src/streaming/controller.rs
@@ -4,6 +4,7 @@ use crate::render::line_utils::prefix_lines;
 use crate::style::proposed_plan_style;
 use ratatui::prelude::Stylize;
 use ratatui::text::Line;
+use std::path::PathBuf;
 use std::time::Duration;
 use std::time::Instant;
 
@@ -18,9 +19,9 @@ pub(crate) struct StreamController {
 }
 
 impl StreamController {
-    pub(crate) fn new(width: Option<usize>) -> Self {
+    pub(crate) fn new(width: Option<usize>, cwd: PathBuf) -> Self {
         Self {
-            state: StreamState::new(width),
+            state: StreamState::new(width, Some(cwd)),
             finishing_after_drain: false,
             header_emitted: false,
         }
@@ -117,7 +118,7 @@ pub(crate) struct PlanStreamController {
 impl PlanStreamController {
     pub(crate) fn new(width: Option<usize>) -> Self {
         Self {
-            state: StreamState::new(width),
+            state: StreamState::new(width, None),
             header_emitted: false,
             top_padding_emitted: false,
         }
@@ -248,7 +249,7 @@ mod tests {
 
     #[tokio::test]
     async fn controller_loose_vs_tight_with_commit_ticks_matches_full() {
-        let mut ctrl = StreamController::new(None);
+        let mut ctrl = StreamController::new(None, PathBuf::from("/workspace"));
         let mut lines = Vec::new();
 
         // Exact deltas from the session log (section: Loose vs. tight list items)
diff --git a/codex-rs/tui/src/streaming/mod.rs b/codex-rs/tui/src/streaming/mod.rs
index c783f27ae9..36452f0437 100644
--- a/codex-rs/tui/src/streaming/mod.rs
+++ b/codex-rs/tui/src/streaming/mod.rs
@@ -10,6 +10,7 @@
 //! arrival timestamp so policy code can reason about oldest queued age without peeking into text.
 
 use std::collections::VecDeque;
+use std::path::PathBuf;
 use std::time::Duration;
 use std::time::Instant;
 
@@ -34,9 +35,9 @@ pub(crate) struct StreamState {
 
 impl StreamState {
     /// Creates an empty stream state with an optional target wrap width.
-    pub(crate) fn new(width: Option<usize>) -> Self {
+    pub(crate) fn new(width: Option<usize>, cwd: Option<PathBuf>) -> Self {
         Self {
-            collector: MarkdownStreamCollector::new(width),
+            collector: MarkdownStreamCollector::new(width, cwd),
             queued_lines: VecDeque::new(),
             has_seen_delta: false,
         }
@@ -105,7 +106,7 @@ mod tests {
 
     #[test]
     fn drain_n_clamps_to_available_lines() {
-        let mut state = StreamState::new(None);
+        let mut state = StreamState::new(None, None);
         state.enqueue(vec![Line::from("one")]);
 
         let drained = state.drain_n(8);