diff --git a/src/agents/pi-embedded-subscribe.ts b/src/agents/pi-embedded-subscribe.ts
index 4ad3a0649..5f9839d4d 100644
--- a/src/agents/pi-embedded-subscribe.ts
+++ b/src/agents/pi-embedded-subscribe.ts
@@ -284,6 +284,50 @@ export function subscribeEmbeddedPiSession(params: {
   const isSafeBreak = (spans: FenceSpan[], index: number): boolean =>
     !findFenceSpanAt(spans, index);
 
+  const pickSoftBreakIndex = (buffer: string): BreakResult => {
+    if (!blockChunking) return { index: -1 };
+    const minChars = Math.max(1, Math.floor(blockChunking.minChars));
+    if (buffer.length < minChars) return { index: -1 };
+    const fenceSpans = parseFenceSpans(buffer);
+    const preference = blockChunking.breakPreference ?? "paragraph";
+
+    if (preference === "paragraph") {
+      let paragraphIdx = buffer.lastIndexOf("\n\n");
+      while (paragraphIdx >= minChars) {
+        if (isSafeBreak(fenceSpans, paragraphIdx)) {
+          return { index: paragraphIdx };
+        }
+        paragraphIdx = buffer.lastIndexOf("\n\n", paragraphIdx - 1);
+      }
+    }
+
+    if (preference === "paragraph" || preference === "newline") {
+      let newlineIdx = buffer.lastIndexOf("\n");
+      while (newlineIdx >= minChars) {
+        if (isSafeBreak(fenceSpans, newlineIdx)) {
+          return { index: newlineIdx };
+        }
+        newlineIdx = buffer.lastIndexOf("\n", newlineIdx - 1);
+      }
+    }
+
+    if (preference !== "newline") {
+      const matches = buffer.matchAll(/[.!?](?=\s|$)/g);
+      let sentenceIdx = -1;
+      for (const match of matches) {
+        const at = match.index ?? -1;
+        if (at < minChars) continue;
+        const candidate = at + 1;
+        if (isSafeBreak(fenceSpans, candidate)) {
+          sentenceIdx = candidate;
+        }
+      }
+      if (sentenceIdx >= minChars) return { index: sentenceIdx };
+    }
+
+    return { index: -1 };
+  };
+
   const pickBreakIndex = (buffer: string): BreakResult => {
     if (!blockChunking) return { index: -1 };
     const minChars = Math.max(1, Math.floor(blockChunking.minChars));
@@ -371,18 +415,15 @@ export function subscribeEmbeddedPiSession(params: {
     if (!blockChunking) return;
     const minChars = Math.max(1, Math.floor(blockChunking.minChars));
     const maxChars = Math.max(minChars, Math.floor(blockChunking.maxChars));
-    // Force flush small remainders as a single chunk to avoid re-splitting.
-    if (force && blockBuffer.length > 0 && blockBuffer.length <= maxChars) {
-      emitBlockChunk(blockBuffer);
-      blockBuffer = "";
-      return;
-    }
     if (blockBuffer.length < minChars && !force) return;
     while (
       blockBuffer.length >= minChars ||
       (force && blockBuffer.length > 0)
     ) {
-      const breakResult = pickBreakIndex(blockBuffer);
+      const breakResult =
+        force && blockBuffer.length <= maxChars
+          ? pickSoftBreakIndex(blockBuffer)
+          : pickBreakIndex(blockBuffer);
       if (breakResult.index <= 0) {
         if (force) {
           emitBlockChunk(blockBuffer);
@@ -643,7 +684,11 @@ export function subscribeEmbeddedPiSession(params: {
               }
             }
 
-            if (params.onBlockReply && blockChunking) {
+            if (
+              params.onBlockReply &&
+              blockChunking &&
+              blockReplyBreak === "text_end"
+            ) {
               drainBlockBuffer(false);
             }
 
@@ -678,7 +723,8 @@ export function subscribeEmbeddedPiSession(params: {
 
           const addedDuringMessage =
             assistantTexts.length > assistantTextBaseline;
-          if (!addedDuringMessage && text) {
+          const chunkingEnabled = Boolean(blockChunking);
+          if (!chunkingEnabled && !addedDuringMessage && text) {
             const last = assistantTexts.at(-1);
             if (!last || last !== text) assistantTexts.push(text);
           }