diff --git a/apps/desktop/src/renderer/src/pages/layout.tsx b/apps/desktop/src/renderer/src/pages/layout.tsx
index 476f61c7..9cef56e4 100644
--- a/apps/desktop/src/renderer/src/pages/layout.tsx
+++ b/apps/desktop/src/renderer/src/pages/layout.tsx
@@ -284,8 +284,8 @@ export default function Layout() {
                     </div>
                     <ChevronsUpDown className="ml-auto size-4" />
                   </DropdownMenuTrigger>
-                  <DropdownMenuContent side="top">
-                    <DropdownMenuItem onClick={handleLogout}>
+                  <DropdownMenuContent side="top" align="end">
+                    <DropdownMenuItem variant="destructive" onClick={handleLogout}>
                       <LogOut className="size-4" />
                       Log out
                     </DropdownMenuItem>
diff --git a/packages/ui/src/components/chat-input.tsx b/packages/ui/src/components/chat-input.tsx
index b6936593..7098112a 100644
--- a/packages/ui/src/components/chat-input.tsx
+++ b/packages/ui/src/components/chat-input.tsx
@@ -1,6 +1,6 @@
 "use client";
 import { useRef, useEffect, useImperativeHandle, forwardRef } from "react";
-import { useEditor, EditorContent } from "@tiptap/react";
+import { useEditor, EditorContent, type Editor } from "@tiptap/react";
 import StarterKit from "@tiptap/starter-kit";
 import Placeholder from "@tiptap/extension-placeholder";
 import { Button } from "@multica/ui/components/ui/button";
@@ -27,9 +27,10 @@ interface ChatInputProps {
 
 export const ChatInput = forwardRef<ChatInputRef, ChatInputProps>(
   function ChatInput({ onSubmit, onAbort, isLoading, disabled, placeholder = "Type a message...", defaultValue }, ref) {
-    // Use ref to avoid stale closure in Tiptap keydown handler
+    // Use refs to avoid stale closures in Tiptap keydown handler
     const onSubmitRef = useRef(onSubmit);
     onSubmitRef.current = onSubmit;
+    const editorRef = useRef<Editor | null>(null);
 
     const editor = useEditor({
       extensions: [
@@ -69,15 +70,11 @@ export const ChatInput = forwardRef<ChatInputRef, ChatInputProps>(
 
           if (event.key === "Enter" && !event.shiftKey) {
             event.preventDefault();
-            const text = _view.state.doc.textContent;
+            // Use TipTap's getText API to preserve newlines between paragraphs
+            const text = editorRef.current?.getText({ blockSeparator: '\n' }) ?? '';
             if (!text.trim()) return true;
             onSubmitRef.current?.(text);
-            // Clear editor after submit
-            _view.dispatch(
-              _view.state.tr
-                .delete(0, _view.state.doc.content.size)
-                .setMeta("addToHistory", false),
-            );
+            editorRef.current?.commands.clearContent();
             return true;
           }
 
@@ -86,6 +83,9 @@ export const ChatInput = forwardRef<ChatInputRef, ChatInputProps>(
       },
     });
 
+    // Keep editorRef in sync for use in handleKeyDown closure
+    editorRef.current = editor;
+
     // Sync disabled state
     useEffect(() => {
       if (!editor) return;
@@ -104,7 +104,7 @@ export const ChatInput = forwardRef<ChatInputRef, ChatInputProps>(
 
     // Expose imperative API
     useImperativeHandle(ref, () => ({
-      getText: () => editor?.state.doc.textContent ?? "",
+      getText: () => editor?.getText({ blockSeparator: '\n' }) ?? "",
       setText: (text: string) => {
         editor?.commands.setContent(text ? `<p>${text}</p>` : "");
       },
@@ -114,7 +114,8 @@ export const ChatInput = forwardRef<ChatInputRef, ChatInputProps>(
 
     const handleSubmit = () => {
       if (!editor) return;
-      const text = editor.state.doc.textContent;
+      // Use TipTap's getText API to preserve newlines between paragraphs
+      const text = editor.getText({ blockSeparator: '\n' });
       if (!text.trim()) return;
       onSubmit?.(text);
       editor.commands.clearContent();
diff --git a/packages/ui/src/components/chat-skeleton.tsx b/packages/ui/src/components/chat-skeleton.tsx
index 405d2723..ea9f289c 100644
--- a/packages/ui/src/components/chat-skeleton.tsx
+++ b/packages/ui/src/components/chat-skeleton.tsx
@@ -5,7 +5,7 @@ import { Skeleton } from "@multica/ui/components/ui/skeleton";
 /** Skeleton placeholder matching MessageList layout, shown while reconnecting */
 export function ChatSkeleton() {
   return (
-    <div className="px-4 py-6 space-y-6 max-w-4xl mx-auto">
+    <div className="container px-4 py-6 space-y-6">
       {/* Assistant message */}
       <div className="flex justify-start">
         <div className="w-full p-1 px-2.5 space-y-2">
diff --git a/packages/ui/src/components/chat-view.tsx b/packages/ui/src/components/chat-view.tsx
index 5a1c92df..7bd6cffb 100644
--- a/packages/ui/src/components/chat-view.tsx
+++ b/packages/ui/src/components/chat-view.tsx
@@ -8,7 +8,6 @@ import { MessageList } from "@multica/ui/components/message-list";
 import { MemoizedMarkdown } from "@multica/ui/components/markdown";
 import { MulticaIcon } from "@multica/ui/components/multica-icon";
 import { ExecApprovalItem } from "@multica/ui/components/exec-approval-item";
-import { Spinner } from "@multica/ui/components/spinner";
 import { useScrollFade } from "@multica/ui/hooks/use-scroll-fade";
 import { useAutoScroll } from "@multica/ui/hooks/use-auto-scroll";
 import type { Message } from "@multica/store";
@@ -145,7 +144,7 @@ export function ChatView({
 
       <main ref={mainRef} className="flex-1 overflow-y-auto min-h-0" style={fadeStyle}>
         {isLoadingHistory && messages.length === 0 ? (
-          <div className="px-4 py-6 max-w-4xl mx-auto">
+          <div className="container px-4 py-6">
             {/* User bubble */}
             <div className="flex justify-end my-2">
               <Skeleton className="h-8 w-[30%] rounded-md" />
@@ -209,17 +208,14 @@ export function ChatView({
                 </div>
               </div>
             )}
-            <MessageList messages={messages} streamingIds={streamingIds} />
-            {isLoading && streamingIds.size === 0 && pendingApprovals.length === 0 && (
-              <div className="relative px-4 sm:px-10 max-w-4xl mx-auto">
-                <div className="flex items-center gap-2 py-1 px-2.5 text-muted-foreground">
-                  <Spinner className="text-xs" />
-                  <span className="text-xs">Generating...</span>
-                </div>
-              </div>
-            )}
+            <MessageList
+              messages={messages}
+              streamingIds={streamingIds}
+              isLoading={isLoading}
+              hasPendingApprovals={pendingApprovals.length > 0}
+            />
             {pendingApprovals.length > 0 && (
-              <div className="relative px-4 max-w-4xl mx-auto">
+              <div className="container relative px-4">
                 {pendingApprovals.map((approval) => (
                   <ExecApprovalItem
                     key={approval.approvalId}
diff --git a/packages/ui/src/components/loading-indicator.tsx b/packages/ui/src/components/loading-indicator.tsx
new file mode 100644
index 00000000..3db5027e
--- /dev/null
+++ b/packages/ui/src/components/loading-indicator.tsx
@@ -0,0 +1,30 @@
+"use client";
+
+import { Spinner } from "@multica/ui/components/spinner";
+import { cn } from "@multica/ui/lib/utils";
+
+export type LoadingVariant = "generating" | "streaming";
+
+interface LoadingIndicatorProps {
+  variant: LoadingVariant;
+  className?: string;
+}
+
+const VARIANT_TEXT: Record<LoadingVariant, string> = {
+  generating: "Generating...",
+  streaming: "Streaming...",
+};
+
+/**
+ * Unified loading indicator for chat.
+ * Use "generating" when waiting for AI response (no content yet).
+ * Use "streaming" when content is actively being received.
+ */
+export function LoadingIndicator({ variant, className }: LoadingIndicatorProps) {
+  return (
+    <div className={cn("flex items-center gap-2 py-1 text-muted-foreground", className)}>
+      <Spinner className="text-xs" />
+      <span className="text-xs">{VARIANT_TEXT[variant]}</span>
+    </div>
+  );
+}
diff --git a/packages/ui/src/components/markdown/StreamingMarkdown.tsx b/packages/ui/src/components/markdown/StreamingMarkdown.tsx
index 282ca65a..aad2f330 100644
--- a/packages/ui/src/components/markdown/StreamingMarkdown.tsx
+++ b/packages/ui/src/components/markdown/StreamingMarkdown.tsx
@@ -1,11 +1,11 @@
 import * as React from 'react'
 import { Markdown, type RenderMode } from './Markdown'
-import { Spinner } from '@multica/ui/components/spinner'
 
 export interface StreamingMarkdownProps {
   content: string
   isStreaming: boolean
   mode?: RenderMode
+  className?: string
   onUrlClick?: (url: string) => void
   onFileClick?: (path: string) => void
 }
@@ -132,23 +132,25 @@ const MemoizedBlock = React.memo(
   function Block({
     content,
     mode,
+    className,
     onUrlClick,
     onFileClick
   }: {
     content: string
     mode: RenderMode
+    className?: string
     onUrlClick?: (url: string) => void
     onFileClick?: (path: string) => void
   }) {
     return (
-      <Markdown mode={mode} onUrlClick={onUrlClick} onFileClick={onFileClick}>
+      <Markdown mode={mode} className={className} onUrlClick={onUrlClick} onFileClick={onFileClick}>
         {content}
       </Markdown>
     )
   },
   (prev, next) => {
     // Only re-render if content actually changed
-    return prev.content === next.content && prev.mode === next.mode
+    return prev.content === next.content && prev.mode === next.mode && prev.className === next.className
   }
 )
 MemoizedBlock.displayName = 'MemoizedBlock'
@@ -173,6 +175,7 @@ export function StreamingMarkdown({
   content,
   isStreaming,
   mode = 'minimal',
+  className,
   onUrlClick,
   onFileClick
 }: StreamingMarkdownProps): React.JSX.Element {
@@ -186,28 +189,17 @@ export function StreamingMarkdown({
   // Not streaming - use simple Markdown (no block splitting needed)
   if (!isStreaming) {
     return (
-      <Markdown mode={mode} onUrlClick={onUrlClick} onFileClick={onFileClick}>
+      <Markdown mode={mode} className={className} onUrlClick={onUrlClick} onFileClick={onFileClick}>
         {content}
       </Markdown>
     )
   }
 
+  // Empty content - return null, let parent handle loading indicator
   if (blocks.length === 0) {
-    return (
-      <div className="flex items-center gap-2 py-1 text-muted-foreground">
-        <Spinner className="text-xs" />
-        <span className="text-xs">Generating...</span>
-      </div>
-    )
+    return <></>
   }
 
-  const indicator = (
-    <div className="absolute bottom-1 left-6 flex items-center gap-2 py-1 text-muted-foreground">
-      <Spinner className="text-xs" />
-      <span className="text-xs">Generating...</span>
-    </div>
-  )
-
   return (
     <>
       {blocks.map((block, i) => {
@@ -222,12 +214,12 @@ export function StreamingMarkdown({
             key={key}
             content={block.content}
             mode={mode}
+            className={className}
             onUrlClick={onUrlClick}
             onFileClick={onFileClick}
           />
         )
       })}
-      {indicator}
     </>
   )
 }
diff --git a/packages/ui/src/components/message-list.tsx b/packages/ui/src/components/message-list.tsx
index 2ff46d5b..84e712a5 100644
--- a/packages/ui/src/components/message-list.tsx
+++ b/packages/ui/src/components/message-list.tsx
@@ -7,6 +7,7 @@ import { ToolCallItem } from "@multica/ui/components/tool-call-item";
 import { ThinkingItem } from "@multica/ui/components/thinking-item";
 import { CompactionItem } from "@multica/ui/components/compaction-item";
 import { MessageSourceIcon } from "@multica/ui/components/message-source-icon";
+import { LoadingIndicator } from "@multica/ui/components/loading-indicator";
 import { cn, getTextContent } from "@multica/ui/lib/utils";
 import type { Message } from "@multica/store";
 import type { ContentBlock, ToolCall, ThinkingContent } from "@multica/sdk";
@@ -62,9 +63,16 @@ function toRunningMessage(tc: ToolCall, agentId: string): Message {
 interface MessageListProps {
   messages: Message[]
   streamingIds: Set<string>
+  isLoading?: boolean
+  hasPendingApprovals?: boolean
 }
 
-export const MessageList = memo(function MessageList({ messages, streamingIds }: MessageListProps) {
+export const MessageList = memo(function MessageList({
+  messages,
+  streamingIds,
+  isLoading = false,
+  hasPendingApprovals = false,
+}: MessageListProps) {
   // Build a set of toolCallIds that already have a toolResult message,
   // so we don't render duplicate items from the assistant's toolCall blocks
   const resolvedToolCallIds = useMemo(() => {
@@ -78,7 +86,7 @@ export const MessageList = memo(function MessageList({ messages, streamingIds }:
   }, [messages])
 
   return (
-    <div className="relative p-6 px-4 sm:px-10 max-w-4xl mx-auto">
+    <div className="container relative p-6">
       {messages.map((msg) => {
         // System messages (e.g. compaction notifications)
         if (msg.role === "system") {
@@ -125,13 +133,22 @@ export const MessageList = memo(function MessageList({ messages, streamingIds }:
                 )}
                 <div
                   className={cn(
-                    msg.role === "user" ? "bg-muted rounded-md max-w-[60%] py-1 px-2.5 my-2" : "w-full py-1 px-2.5 my-1"
+                    msg.role === "user" ? "bg-muted rounded-md max-w-[60%] p-2 px-4 my-2" : "w-full p-2 my-2"
                   )}
                 >
                   {isStreaming ? (
-                    <StreamingMarkdown content={text} isStreaming={true} mode="minimal" />
+                    <StreamingMarkdown
+                      content={text}
+                      isStreaming={true}
+                      mode="minimal"
+                      className={msg.role === "user" ? "[&_p]:whitespace-pre-wrap" : ""}
+                    />
                   ) : (
-                    <MemoizedMarkdown mode="minimal" id={msg.id}>
+                    <MemoizedMarkdown
+                      mode="minimal"
+                      id={msg.id}
+                      className={msg.role === "user" ? "[&_p]:whitespace-pre-wrap" : ""}
+                    >
                       {text}
                     </MemoizedMarkdown>
                   )}
@@ -146,6 +163,12 @@ export const MessageList = memo(function MessageList({ messages, streamingIds }:
           </div>
         )
       })}
+      {isLoading && !hasPendingApprovals && (
+        <LoadingIndicator
+          variant={streamingIds.size > 0 ? "streaming" : "generating"}
+          className="px-2"
+        />
+      )}
     </div>
   )
 })
diff --git a/packages/ui/src/styles/globals.css b/packages/ui/src/styles/globals.css
index 7c7f1cf1..b66018d1 100644
--- a/packages/ui/src/styles/globals.css
+++ b/packages/ui/src/styles/globals.css
@@ -257,7 +257,7 @@
 }
 
 @utility container {
-  @apply w-full max-w-5xl mx-auto;
+  @apply w-full max-w-4xl mx-auto;
 }
 
 @layer base {