diff --git a/internal/ui/model.go b/internal/ui/model.go
index a45414f4..6adb5d0a 100644
--- a/internal/ui/model.go
+++ b/internal/ui/model.go
@@ -6381,6 +6381,8 @@ func (m *AppModel) resolvePrompt(resp app.PromptResponse) {
 	}
 	m.prompt = nil
 	m.state = m.prePromptState
+	// The input area comes back. Measure the layout again.
+	m.layoutDirty = true
 }
 
 // --------------------------------------------------------------------------
@@ -7781,6 +7783,9 @@ func (m *AppModel) handleAppMessage(msg tea.Msg, cmds []tea.Cmd) (tea.Model, tea
 		if m.prompt != nil {
 			cmds = append(cmds, m.prompt.Init())
 		}
+		// The prompt replaces the input area and is taller. Measure the
+		// layout again, or the terminal does not show its last lines.
+		m.layoutDirty = true
 
 	case app.PromptRequestEvent:
 		// Extension wants to show an interactive prompt. Enter prompt state.
@@ -7818,6 +7823,9 @@ func (m *AppModel) handleAppMessage(msg tea.Msg, cmds []tea.Cmd) (tea.Model, tea
 		if m.prompt != nil {
 			cmds = append(cmds, m.prompt.Init())
 		}
+		// The prompt replaces the input area and is taller. Measure the
+		// layout again, or the terminal does not show its last lines.
+		m.layoutDirty = true
 
 	case app.OverlayRequestEvent:
 		// Extension wants to show a modal overlay dialog. Enter overlay state.
diff --git a/internal/ui/prompt_layout_test.go b/internal/ui/prompt_layout_test.go
new file mode 100644
index 00000000..93c02655
--- /dev/null
+++ b/internal/ui/prompt_layout_test.go
@@ -0,0 +1,89 @@
+package ui
+
+import (
+	"strings"
+	"testing"
+	"time"
+
+	tea "charm.land/bubbletea/v2"
+	"charm.land/lipgloss/v2"
+
+	"github.com/mark3labs/kit/internal/app"
+)
+
+// TestPromptFitsTerminal verifies that the layout is measured again when a
+// prompt opens and when it closes. The prompt replaces the input area and is
+// taller than it. If the transcript keeps the height that it had for the
+// input area, the view is taller than the terminal. Then the terminal does
+// not show the options of the prompt and the status bar.
+func TestPromptFitsTerminal(t *testing.T) {
+	newModel := func(t *testing.T) *AppModel {
+		t.Helper()
+		m, _, _ := newTestAppModel(&stubAppController{})
+		m.input = NewInputComponent(80, nil)
+		m = sendMsg(m, tea.WindowSizeMsg{Width: 80, Height: 24})
+		checkViewHeight(t, m, "before the prompt")
+		return m
+	}
+
+	t.Run("select prompt of an extension", func(t *testing.T) {
+		m := newModel(t)
+		ch := make(chan app.PromptResponse, 1)
+		m = sendMsg(m, app.PromptRequestEvent{
+			PromptType: "select",
+			Message:    "Choose a target",
+			Options:    []string{"local", "staging", "production"},
+			ResponseCh: ch,
+		})
+		if view := checkViewHeight(t, m, "with the prompt"); !strings.Contains(view, "production") {
+			t.Fatalf("the view does not show the last option\n%s", view)
+		}
+
+		m = sendMsg(m, tea.KeyPressMsg{Code: tea.KeyEscape})
+		select {
+		case resp := <-ch:
+			if !resp.Cancelled {
+				t.Fatalf("Esc gave %+v, want a cancelled prompt", resp)
+			}
+		case <-time.After(5 * time.Second):
+			t.Fatal("no response after Esc")
+		}
+		checkViewHeight(t, m, "after the prompt")
+	})
+
+	t.Run("password prompt", func(t *testing.T) {
+		m := newModel(t)
+		ch := make(chan app.PasswordPromptResponse, 1)
+		m = sendMsg(m, app.PasswordPromptEvent{Prompt: "Password for sudo", ResponseCh: ch})
+		if view := checkViewHeight(t, m, "with the prompt"); !strings.Contains(view, "Password for sudo") {
+			t.Fatalf("the view does not show the prompt\n%s", view)
+		}
+
+		m = sendMsg(m, tea.KeyPressMsg{Code: tea.KeyEscape})
+		select {
+		case resp := <-ch:
+			if !resp.Cancelled {
+				t.Fatalf("Esc gave %+v, want a cancelled prompt", resp)
+			}
+		case <-time.After(5 * time.Second):
+			t.Fatal("no response after Esc")
+		}
+		checkViewHeight(t, m, "after the prompt")
+	})
+}
+
+// checkViewHeight renders a frame and stops the test unless the frame has
+// the height of the terminal and ends with the status bar. The status bar
+// shows the model name. It returns the frame without ANSI codes.
+func checkViewHeight(t *testing.T, m *AppModel, when string) string {
+	t.Helper()
+	view := m.View().Content
+	if got := lipgloss.Height(view); got != m.height {
+		t.Fatalf("view height %s = %d, want %d\n%s", when, got, m.height, stripAnsi(view))
+	}
+	plain := stripAnsi(view)
+	if last := plain[strings.LastIndex(plain, "\n")+1:]; !strings.Contains(last, m.modelName) {
+		t.Fatalf("last line %s = %q, want the status bar with %q\n%s", when, last, m.modelName, plain)
+	}
+	return plain
+}