diff --git a/src/aipass/skills/.seedgo/bypass.json b/src/aipass/skills/.seedgo/bypass.json
index 43527a37..a27dc525 100644
--- a/src/aipass/skills/.seedgo/bypass.json
+++ b/src/aipass/skills/.seedgo/bypass.json
@@ -96,6 +96,21 @@
       "standard": "encapsulation",
       "reason": "Test file — imports handler directly for unit testing. Same pattern as test_multi_bot.py and test_attach_only.py."
     },
+    {
+      "file": "lib/telegram/tests/test_streaming.py",
+      "standard": "architecture",
+      "reason": "Test file — lives in tests/ by convention. Test files are exempt from layer architecture standard."
+    },
+    {
+      "file": "lib/telegram/tests/test_streaming.py",
+      "standard": "encapsulation",
+      "reason": "Test file — imports handler directly for unit testing. Same pattern as all other TG test files."
+    },
+    {
+      "file": "lib/telegram/tests/test_streaming.py",
+      "standard": "documentation",
+      "reason": "Test file — pytest test methods are self-documenting via class/method names."
+    },
     {
       "file": "lib/telegram/tests/test_heartbeat_delivered.py",
       "standard": "architecture",
diff --git a/src/aipass/skills/lib/telegram/apps/handlers/base_bot.py b/src/aipass/skills/lib/telegram/apps/handlers/base_bot.py
index 80d340fa..746c969b 100644
--- a/src/aipass/skills/lib/telegram/apps/handlers/base_bot.py
+++ b/src/aipass/skills/lib/telegram/apps/handlers/base_bot.py
@@ -57,7 +57,7 @@ import uuid
 from datetime import datetime
 from pathlib import Path
 from typing import Optional
-from urllib.error import URLError
+from urllib.error import HTTPError, URLError
 from urllib.request import Request, urlopen
 
 # Logging
@@ -133,6 +133,7 @@ RATE_LIMIT_WINDOW = 60
 POLL_TIMEOUT = 30
 SEND_KEYS_DELAY = 0.5
 HEARTBEAT_INTERVAL = 30  # seconds
+STREAM_INTERVAL = 2  # seconds between streaming edits
 CLAUDE_BIN = str(Path.home() / ".local" / "bin" / "claude")
 MIRROR_SESSION_TYPE = "interactive-mirror"
 TEMP_DIR = Path("/tmp/telegram_uploads")
@@ -164,6 +165,7 @@ class BaseBot:
         branch_name: Optional[str] = None,
         shared_session: Optional[str] = None,
         attach_only: bool = False,
+        stream: bool = False,
     ) -> None:
         """
         Initialize BaseBot.
@@ -200,6 +202,7 @@ class BaseBot:
         self._shared_session_name = shared_session
         self._using_shared_session = False
         self._attach_only = attach_only
+        self._stream = stream
         self._mirror_mapping_written = False
         self._last_transcript_path: str | None = None
         self._config_chat_id: int | None = None
@@ -1439,6 +1442,8 @@ class BaseBot:
             "transcript_path": str(self._active_transcript_path) if self._active_transcript_path else None,
             "session_id": self._active_session_id,
         }
+        if self._stream:
+            pending_data["streaming"] = True
 
         try:
             self.pending_file.write_text(
@@ -1856,8 +1861,10 @@ class BaseBot:
 
     def _start_heartbeat(self, chat_id: int, processing_msg_id: int) -> None:
         """
-        Start a background thread that updates the "Processing..." message
-        with elapsed time.
+        Start a background thread that updates the "Processing..." message.
+
+        In batch mode (default): edits with elapsed time every 30s.
+        In stream mode: tails transcript and edits with live content every 2s.
 
         Args:
             chat_id: Chat ID where the processing message was sent
@@ -1868,6 +1875,13 @@ class BaseBot:
 
         def _heartbeat_loop():
             start = time.time()
+
+            # Streaming mode (FPLAN-0297): live transcript tail
+            if self._stream and self._active_transcript_path:
+                self._streaming_loop(chat_id, processing_msg_id, start)
+                return
+
+            # Batch mode (default): elapsed-time updates
             while not self._heartbeat_stop.is_set():
                 self._heartbeat_stop.wait(HEARTBEAT_INTERVAL)
                 if self._heartbeat_stop.is_set():
@@ -1921,6 +1935,183 @@ class BaseBot:
         minutes, secs = divmod(total, 60)
         return f"{minutes}m {secs}s"
 
+    # =============================================
+    # STREAMING EDIT-IN-PLACE (FPLAN-0297)
+    # =============================================
+
+    def _streaming_loop(self, chat_id: int, msg_id: int, start_time: float) -> None:
+        """Stream transcript content into the processing message via edit-in-place."""
+        path = self._active_transcript_path
+        try:
+            byte_offset = path.stat().st_size if path else 0
+        except OSError as exc:
+            logger.info("Cannot stat transcript for streaming: %s", exc)
+            byte_offset = 0
+
+        buffer = ""
+        last_sent = ""
+        current_msg_id = msg_id
+        retry_after_until = 0.0
+
+        while not self._heartbeat_stop.is_set():
+            self._heartbeat_stop.wait(STREAM_INTERVAL)
+            if self._heartbeat_stop.is_set():
+                break
+            if self._is_pending_delivered():
+                break
+            if not self._tmux_session_exists():
+                break
+
+            new_entries, byte_offset = self._tail_transcript_bytes(path, byte_offset)
+            new_text = self._format_stream_entries(new_entries)
+            if new_text:
+                buffer += new_text
+
+            if self._is_pending_delivered():
+                break
+
+            if not buffer:
+                elapsed = time.time() - start_time
+                placeholder = f"Processing... ({self._format_elapsed(elapsed)})"
+                now = time.time()
+                if placeholder != last_sent and now >= retry_after_until:
+                    ok, retry = self._stream_edit(chat_id, current_msg_id, placeholder)
+                    retry_after_until = now + retry if retry > 0 else retry_after_until
+                    last_sent = placeholder if ok else last_sent
+                continue
+
+            if buffer == last_sent:
+                continue
+
+            now = time.time()
+            if now < retry_after_until:
+                continue
+
+            if len(buffer) > TELEGRAM_CHAR_LIMIT:
+                break_at = buffer.rfind("\n", 0, TELEGRAM_CHAR_LIMIT)
+                if break_at < TELEGRAM_CHAR_LIMIT // 2:
+                    break_at = TELEGRAM_CHAR_LIMIT
+                final_chunk = buffer[:break_at].rstrip()
+                self._stream_edit(chat_id, current_msg_id, final_chunk)
+                buffer = buffer[break_at:].lstrip()
+                initial = buffer[:TELEGRAM_CHAR_LIMIT] or "..."
+                result = self.send_message(chat_id, initial)
+                if result:
+                    current_msg_id = result.get("message_id", current_msg_id)
+                last_sent = initial
+                continue
+
+            ok, retry = self._stream_edit(chat_id, current_msg_id, buffer)
+            if retry > 0:
+                retry_after_until = now + retry
+            if ok:
+                last_sent = buffer
+
+    def _tail_transcript_bytes(self, path: Path | None, byte_offset: int) -> tuple[list[dict], int]:
+        """Incrementally tail a JSONL transcript from byte_offset."""
+        if not path:
+            return [], byte_offset
+        try:
+            with open(path, "rb") as f:
+                f.seek(0, 2)
+                file_size = f.tell()
+                if file_size <= byte_offset:
+                    return [], byte_offset
+                f.seek(byte_offset)
+                new_bytes = f.read()
+        except OSError as exc:
+            logger.info("Cannot read transcript for streaming tail: %s", exc)
+            return [], byte_offset
+
+        last_newline = new_bytes.rfind(b"\n")
+        if last_newline == -1:
+            return [], byte_offset
+
+        complete = new_bytes[: last_newline + 1]
+        entries = []
+        for line_bytes in complete.split(b"\n"):
+            line_str = line_bytes.decode("utf-8", errors="replace").strip()
+            if not line_str:
+                continue
+            try:
+                entries.append(json.loads(line_str))
+            except json.JSONDecodeError:
+                logger.info("Malformed JSONL line in streaming tail")
+
+        return entries, byte_offset + len(complete)
+
+    @staticmethod
+    def _format_content_block(block: dict) -> str | None:
+        """Map a single transcript content block to plain-text display."""
+        if not isinstance(block, dict):
+            return None
+        btype = block.get("type", "")
+        if btype == "text":
+            text = block.get("text", "")
+            return text if text.strip() else None
+        if btype == "thinking":
+            return "Thinking..."
+        if btype == "tool_use":
+            return f"Running {block.get('name', 'tool')}..."
+        return None
+
+    @staticmethod
+    def _format_stream_entries(entries: list[dict]) -> str:
+        """Block-map transcript entries to plain-text streaming content."""
+        parts: list[str] = []
+        for entry in entries:
+            if entry.get("isSidechain"):
+                continue
+            msg = entry.get("message", {})
+            if msg.get("role") != "assistant":
+                continue
+            content = msg.get("content", [])
+            if isinstance(content, str):
+                if content.strip():
+                    parts.append(content)
+                continue
+            if not isinstance(content, list):
+                continue
+            for block in content:
+                mapped = BaseBot._format_content_block(block)
+                if mapped is not None:
+                    parts.append(mapped)
+        if not parts:
+            return ""
+        return "\n".join(parts) + "\n"
+
+    def _stream_edit(self, chat_id: int, message_id: int, text: str) -> tuple[bool, float]:
+        """Edit a message with 429/not-modified handling for streaming.
+
+        Returns (success, retry_after_seconds). retry_after > 0 means rate-limited.
+        """
+        url = f"https://api.telegram.org/bot{self.bot_token}/editMessageText"
+        payload = {"chat_id": chat_id, "message_id": message_id, "text": text}
+
+        try:
+            data = json.dumps(payload).encode("utf-8")
+            req = Request(url, data=data, headers={"Content-Type": "application/json"})
+            with urlopen(req, timeout=15) as resp:
+                result = json.loads(resp.read().decode("utf-8"))
+            return result.get("ok", False), 0.0
+        except HTTPError as e:
+            try:
+                body = json.loads(e.read().decode("utf-8"))
+            except Exception as parse_err:
+                logger.info("Cannot parse stream edit error body: %s", parse_err)
+                body = {}
+            if e.code == 429:
+                retry = body.get("parameters", {}).get("retry_after", 30)
+                logger.info("Stream edit 429 — backing off %ds", retry)
+                return False, float(retry)
+            if e.code == 400 and "not modified" in body.get("description", ""):
+                return True, 0.0
+            logger.warning("Stream edit HTTP %d: %s", e.code, body.get("description", ""))
+            return False, 0.0
+        except Exception as e:
+            logger.warning("Stream edit error: %s", e)
+            return False, 0.0
+
     # =============================================
     # OVERRIDABLE HOOKS
     # =============================================
@@ -2300,6 +2491,7 @@ if __name__ == "__main__":
         branch_name=config.get("branch_name"),
         shared_session=config.get("shared_session"),
         attach_only=config.get("attach_only", False),
+        stream=config.get("stream", False),
     )
 
     if config.get("chat_id"):
diff --git a/src/aipass/skills/lib/telegram/tests/test_streaming.py b/src/aipass/skills/lib/telegram/tests/test_streaming.py
new file mode 100644
index 00000000..6bb57919
--- /dev/null
+++ b/src/aipass/skills/lib/telegram/tests/test_streaming.py
@@ -0,0 +1,595 @@
+# =================== AIPass ====================
+# Name: test_streaming.py
+# Description: Tests for streaming edit-in-place (FPLAN-0297)
+# Version: 1.0.0
+# Created: 2026-07-01
+# Modified: 2026-07-01
+# =============================================
+
+"""
+Tests for streaming edit-in-place (FPLAN-0297).
+
+Covers:
+  - _format_content_block: single block → plain text
+  - _format_stream_entries: batch block-mapping
+  - _tail_transcript_bytes: incremental byte-offset JSONL tail
+  - _stream_edit: 429/not-modified handling
+  - _streaming_loop: full loop behaviour (throttle, rollover, fallback)
+  - write_pending_file: streaming flag in pending file
+  - Batch mode unchanged when stream=False
+"""
+
+import json
+import threading
+import time
+from pathlib import Path
+from unittest.mock import MagicMock, patch
+
+import pytest
+
+from apps.handlers.base_bot import BaseBot  # type: ignore[import-not-found]
+
+
+# =============================================
+# Fixtures
+# =============================================
+
+
+@pytest.fixture
+def _patch_deps(tmp_path):
+    """Patch signal and atexit for safe BaseBot construction."""
+    patches = [
+        patch("apps.handlers.base_bot.PENDING_DIR", tmp_path),
+        patch("apps.handlers.base_bot.signal.signal"),
+        patch("apps.handlers.base_bot.atexit.register"),
+    ]
+    for p in patches:
+        p.start()
+    yield
+    for p in patches:
+        p.stop()
+
+
+def _make_bot(tmp_path, _patch_deps, stream=False):
+    """Create a BaseBot with test defaults."""
+    workdir = tmp_path / "workdir"
+    workdir.mkdir(exist_ok=True)
+    with patch("apps.handlers.base_bot.PENDING_DIR", tmp_path):
+        bot = BaseBot(
+            bot_id="stream_test",
+            bot_token="123:FAKETOKEN",
+            work_dir=workdir,
+            bot_name="Stream Test Bot",
+            allowed_user_ids=[111],
+            branch_name="testbranch",
+            stream=stream,
+        )
+    bot.send_message = MagicMock(return_value={"ok": True, "message_id": 1})
+    bot.edit_message = MagicMock(return_value=True)
+    return bot
+
+
+def _write_transcript(path, entries):
+    """Write JSONL entries to a file. Returns the file path."""
+    path.parent.mkdir(parents=True, exist_ok=True)
+    content = "\n".join(json.dumps(e) for e in entries) + "\n"
+    path.write_text(content, encoding="utf-8")
+    return path
+
+
+def _assistant_entry(content_blocks, sidechain=False):
+    """Build a transcript entry with assistant role."""
+    entry: dict = {"message": {"role": "assistant", "content": content_blocks}}
+    if sidechain:
+        entry["isSidechain"] = True  # type: ignore[assignment]
+    return entry
+
+
+def _user_entry(text="hello"):
+    """Build a transcript entry with user role."""
+    return {"message": {"role": "user", "content": text}}
+
+
+# =============================================
+# 1. _format_content_block
+# =============================================
+
+
+class TestFormatContentBlock:
+    """Unit tests for _format_content_block."""
+
+    def test_text_block(self):
+        result = BaseBot._format_content_block({"type": "text", "text": "Hello world"})
+        assert result == "Hello world"
+
+    def test_text_block_empty(self):
+        result = BaseBot._format_content_block({"type": "text", "text": "   "})
+        assert result is None
+
+    def test_thinking_block(self):
+        result = BaseBot._format_content_block({"type": "thinking", "thinking": "Let me think..."})
+        assert result == "Thinking..."
+
+    def test_tool_use_block(self):
+        result = BaseBot._format_content_block({"type": "tool_use", "name": "Bash", "input": {}})
+        assert result == "Running Bash..."
+
+    def test_tool_use_no_name(self):
+        result = BaseBot._format_content_block({"type": "tool_use"})
+        assert result == "Running tool..."
+
+    def test_unknown_type(self):
+        result = BaseBot._format_content_block({"type": "server_tool_use"})
+        assert result is None
+
+    def test_not_dict(self):
+        result = BaseBot._format_content_block("not a dict")
+        assert result is None
+
+
+# =============================================
+# 2. _format_stream_entries
+# =============================================
+
+
+class TestFormatStreamEntries:
+    """Unit tests for _format_stream_entries."""
+
+    def test_text_entry(self):
+        entries = [_assistant_entry([{"type": "text", "text": "Answer here"}])]
+        result = BaseBot._format_stream_entries(entries)
+        assert result == "Answer here\n"
+
+    def test_thinking_then_text(self):
+        entries = [
+            _assistant_entry(
+                [
+                    {"type": "thinking", "thinking": "hmm"},
+                    {"type": "text", "text": "Done"},
+                ]
+            )
+        ]
+        result = BaseBot._format_stream_entries(entries)
+        assert result == "Thinking...\nDone\n"
+
+    def test_tool_use_entry(self):
+        entries = [_assistant_entry([{"type": "tool_use", "name": "Read"}])]
+        result = BaseBot._format_stream_entries(entries)
+        assert result == "Running Read...\n"
+
+    def test_skips_user_role(self):
+        entries = [_user_entry("hello")]
+        result = BaseBot._format_stream_entries(entries)
+        assert result == ""
+
+    def test_skips_sidechain(self):
+        entries = [_assistant_entry([{"type": "text", "text": "side"}], sidechain=True)]
+        result = BaseBot._format_stream_entries(entries)
+        assert result == ""
+
+    def test_multiple_entries(self):
+        entries = [
+            _assistant_entry([{"type": "tool_use", "name": "Bash"}]),
+            _assistant_entry([{"type": "text", "text": "Result"}]),
+        ]
+        result = BaseBot._format_stream_entries(entries)
+        assert result == "Running Bash...\nResult\n"
+
+    def test_string_content(self):
+        entries = [{"message": {"role": "assistant", "content": "plain string"}}]
+        result = BaseBot._format_stream_entries(entries)
+        assert result == "plain string\n"
+
+    def test_empty_entries(self):
+        result = BaseBot._format_stream_entries([])
+        assert result == ""
+
+
+# =============================================
+# 3. _tail_transcript_bytes
+# =============================================
+
+
+class TestTailTranscriptBytes:
+    """Unit tests for _tail_transcript_bytes."""
+
+    def test_new_lines_parsed(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps)
+        transcript = tmp_path / "test.jsonl"
+        entries = [_assistant_entry([{"type": "text", "text": "Hello"}])]
+        _write_transcript(transcript, entries)
+
+        result_entries, new_offset = bot._tail_transcript_bytes(transcript, 0)
+        assert len(result_entries) == 1
+        assert result_entries[0]["message"]["content"][0]["text"] == "Hello"
+        assert new_offset > 0
+
+    def test_no_new_content(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps)
+        transcript = tmp_path / "test.jsonl"
+        _write_transcript(transcript, [_assistant_entry([{"type": "text", "text": "Hi"}])])
+        size = transcript.stat().st_size
+
+        result_entries, new_offset = bot._tail_transcript_bytes(transcript, size)
+        assert result_entries == []
+        assert new_offset == size
+
+    def test_partial_line_not_consumed(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps)
+        transcript = tmp_path / "test.jsonl"
+        complete = json.dumps(_assistant_entry([{"type": "text", "text": "A"}]))
+        partial = '{"incomplete": true'
+        transcript.write_text(complete + "\n" + partial, encoding="utf-8")
+
+        result_entries, new_offset = bot._tail_transcript_bytes(transcript, 0)
+        assert len(result_entries) == 1
+        assert new_offset == len(complete.encode("utf-8")) + 1  # includes the \n
+
+    def test_none_path(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps)
+        result_entries, offset = bot._tail_transcript_bytes(None, 0)
+        assert result_entries == []
+        assert offset == 0
+
+    def test_missing_file(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps)
+        missing = tmp_path / "nonexistent.jsonl"
+        result_entries, offset = bot._tail_transcript_bytes(missing, 0)
+        assert result_entries == []
+        assert offset == 0
+
+    def test_incremental_reads(self, tmp_path, _patch_deps):
+        """Two reads: first gets initial content, second gets appended content."""
+        bot = _make_bot(tmp_path, _patch_deps)
+        transcript = tmp_path / "test.jsonl"
+        entry1 = _assistant_entry([{"type": "text", "text": "First"}])
+        _write_transcript(transcript, [entry1])
+
+        entries1, offset1 = bot._tail_transcript_bytes(transcript, 0)
+        assert len(entries1) == 1
+
+        entry2 = _assistant_entry([{"type": "text", "text": "Second"}])
+        with open(transcript, "a", encoding="utf-8") as f:
+            f.write(json.dumps(entry2) + "\n")
+
+        entries2, offset2 = bot._tail_transcript_bytes(transcript, offset1)
+        assert len(entries2) == 1
+        assert entries2[0]["message"]["content"][0]["text"] == "Second"
+        assert offset2 > offset1
+
+
+# =============================================
+# 4. _stream_edit
+# =============================================
+
+
+class TestStreamEdit:
+    """Unit tests for _stream_edit (429/not-modified handling)."""
+
+    def test_success(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps)
+        response = json.dumps({"ok": True}).encode("utf-8")
+        mock_resp = MagicMock()
+        mock_resp.read.return_value = response
+        mock_resp.__enter__ = MagicMock(return_value=mock_resp)
+        mock_resp.__exit__ = MagicMock(return_value=False)
+
+        with patch("apps.handlers.base_bot.urlopen", return_value=mock_resp):
+            ok, retry = bot._stream_edit(123, 456, "hello")
+        assert ok is True
+        assert retry == 0.0
+
+    def test_429_returns_retry_after(self, tmp_path, _patch_deps):
+        from urllib.error import HTTPError
+
+        bot = _make_bot(tmp_path, _patch_deps)
+
+        body = json.dumps(
+            {
+                "ok": False,
+                "error_code": 429,
+                "description": "Too Many Requests: retry after 15",
+                "parameters": {"retry_after": 15},
+            }
+        ).encode("utf-8")
+        err = HTTPError("url", 429, "Too Many Requests", None, None)  # type: ignore[arg-type]
+        err.read = MagicMock(return_value=body)
+
+        with patch("apps.handlers.base_bot.urlopen", side_effect=err):
+            ok, retry = bot._stream_edit(123, 456, "hello")
+        assert ok is False
+        assert retry == 15.0
+
+    def test_400_not_modified_treated_as_ok(self, tmp_path, _patch_deps):
+        from urllib.error import HTTPError
+
+        bot = _make_bot(tmp_path, _patch_deps)
+
+        body = json.dumps(
+            {
+                "ok": False,
+                "error_code": 400,
+                "description": "Bad Request: message is not modified",
+            }
+        ).encode("utf-8")
+        err = HTTPError("url", 400, "Bad Request", None, None)  # type: ignore[arg-type]
+        err.read = MagicMock(return_value=body)
+
+        with patch("apps.handlers.base_bot.urlopen", side_effect=err):
+            ok, retry = bot._stream_edit(123, 456, "same text")
+        assert ok is True
+        assert retry == 0.0
+
+    def test_other_error(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps)
+        with patch("apps.handlers.base_bot.urlopen", side_effect=ConnectionError("fail")):
+            ok, retry = bot._stream_edit(123, 456, "hello")
+        assert ok is False
+        assert retry == 0.0
+
+
+# =============================================
+# 5. Pending file streaming flag
+# =============================================
+
+
+class TestPendingFileStreaming:
+    """Tests for streaming flag in write_pending_file."""
+
+    def test_no_streaming_key_when_off(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps, stream=False)
+        with patch("apps.handlers.base_bot.PENDING_DIR", tmp_path):
+            bot.pending_file = tmp_path / "bot-stream_test.json"
+            bot.write_pending_file(123, 1, 2)
+        data = json.loads(bot.pending_file.read_text(encoding="utf-8"))
+        assert "streaming" not in data
+
+    def test_streaming_true_when_on(self, tmp_path, _patch_deps):
+        bot = _make_bot(tmp_path, _patch_deps, stream=True)
+        with patch("apps.handlers.base_bot.PENDING_DIR", tmp_path):
+            bot.pending_file = tmp_path / "bot-stream_test.json"
+            bot.write_pending_file(123, 1, 2)
+        data = json.loads(bot.pending_file.read_text(encoding="utf-8"))
+        assert data["streaming"] is True
+
+
+# =============================================
+# 6. Batch mode unchanged
+# =============================================
+
+
+class TestBatchModeUnchanged:
+    """Prove batch mode (stream=False) is byte-for-byte unchanged."""
+
+    def test_heartbeat_uses_edit_message_not_stream(self, tmp_path, _patch_deps):
+        """When stream=False, heartbeat calls edit_message (batch), not _stream_edit."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=False)
+        bot._stream_edit = MagicMock(return_value=(True, 0.0))
+        bot._tmux_session_exists = MagicMock(return_value=True)
+
+        call_count = [0]
+
+        def delivered_after_one():
+            call_count[0] += 1
+            return call_count[0] >= 2
+
+        bot._is_pending_delivered = delivered_after_one
+        bot._heartbeat_stop = threading.Event()
+        bot._start_heartbeat(123, 456)
+        if bot._heartbeat_thread:
+            bot._heartbeat_thread.join(timeout=35)
+        bot._stream_edit.assert_not_called()
+        bot.edit_message.assert_called()
+
+    def test_stream_false_no_transcript_tail(self, tmp_path, _patch_deps):
+        """When stream=False, _tail_transcript_bytes is never called."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=False)
+        bot._tail_transcript_bytes = MagicMock()
+        bot._heartbeat_stop = threading.Event()
+
+        call_count = [0]
+
+        def delivered_after_first():
+            call_count[0] += 1
+            return call_count[0] >= 1
+
+        bot._is_pending_delivered = delivered_after_first
+        bot._start_heartbeat(123, 456)
+        if bot._heartbeat_thread:
+            bot._heartbeat_thread.join(timeout=5)
+        bot._tail_transcript_bytes.assert_not_called()
+
+
+# =============================================
+# 7. Streaming loop integration
+# =============================================
+
+
+class TestStreamingLoop:
+    """Integration tests for _streaming_loop."""
+
+    def test_edits_with_transcript_content(self, tmp_path, _patch_deps):
+        """Streaming loop edits the processing message with transcript text."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=True)
+        transcript = tmp_path / "transcript.jsonl"
+        bot._active_transcript_path = transcript
+
+        entry = _assistant_entry([{"type": "text", "text": "Live answer"}])
+        _write_transcript(transcript, [entry])
+
+        bot._stream_edit = MagicMock(return_value=(True, 0.0))
+
+        call_count = [0]
+
+        def stop_after_three():
+            call_count[0] += 1
+            return call_count[0] >= 3
+
+        bot._is_pending_delivered = stop_after_three
+        bot._tmux_session_exists = MagicMock(return_value=True)
+
+        # Write transcript AFTER byte_offset init (simulating turn content arriving)
+        original_stat = Path.stat
+
+        def fake_stat(self_path):
+            if self_path == transcript:
+                # Return 0 size initially so the loop reads from start
+                return type("FakeStat", (), {"st_size": 0})()
+            return original_stat(self_path)
+
+        bot._heartbeat_stop = threading.Event()
+        with patch.object(Path, "stat", fake_stat):
+            bot._streaming_loop(123, 456, time.time())
+
+        assert bot._stream_edit.call_count >= 1
+        edit_text = bot._stream_edit.call_args[0][2]
+        assert "Live answer" in edit_text
+
+    def test_skips_unchanged_buffer(self, tmp_path, _patch_deps):
+        """Streaming loop does not edit when buffer hasn't changed."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=True)
+        transcript = tmp_path / "transcript.jsonl"
+        bot._active_transcript_path = transcript
+        _write_transcript(transcript, [])
+
+        call_count = [0]
+
+        def stop_after_three():
+            call_count[0] += 1
+            return call_count[0] >= 3
+
+        bot._is_pending_delivered = stop_after_three
+        bot._tmux_session_exists = MagicMock(return_value=True)
+        bot._stream_edit = MagicMock(return_value=(True, 0.0))
+        bot._heartbeat_stop = threading.Event()
+
+        bot._streaming_loop(123, 456, time.time())
+
+        # Should show "Processing..." but not re-edit identical text
+        first_call_text = bot._stream_edit.call_args_list[0][0][2] if bot._stream_edit.call_count > 0 else ""
+        for call_args in bot._stream_edit.call_args_list[1:]:
+            assert call_args[0][2] != first_call_text or "Processing..." not in first_call_text
+
+    def test_4096_rollover(self, tmp_path, _patch_deps):
+        """Buffer exceeding 4096 chars triggers message rollover."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=True)
+        transcript = tmp_path / "transcript.jsonl"
+        bot._active_transcript_path = transcript
+
+        big_text = "A" * 5000
+        entry = _assistant_entry([{"type": "text", "text": big_text}])
+        _write_transcript(transcript, [entry])
+
+        bot._stream_edit = MagicMock(return_value=(True, 0.0))
+        bot.send_message = MagicMock(return_value={"message_id": 999})
+
+        call_count = [0]
+
+        def stop_after_three():
+            call_count[0] += 1
+            return call_count[0] >= 3
+
+        bot._is_pending_delivered = stop_after_three
+        bot._tmux_session_exists = MagicMock(return_value=True)
+        bot._heartbeat_stop = threading.Event()
+
+        with patch.object(Path, "stat", lambda s: type("S", (), {"st_size": 0})()):
+            bot._streaming_loop(123, 456, time.time())
+
+        # Should have called send_message for the rollover
+        bot.send_message.assert_called()
+
+    def test_429_pauses_edits(self, tmp_path, _patch_deps):
+        """After a 429, streaming loop skips edits until retry_after elapses."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=True)
+        transcript = tmp_path / "transcript.jsonl"
+        bot._active_transcript_path = transcript
+
+        entry = _assistant_entry([{"type": "text", "text": "data"}])
+        _write_transcript(transcript, [entry])
+
+        edit_calls = [0]
+
+        def rate_limited_edit(_chat, _msg, _text):
+            edit_calls[0] += 1
+            if edit_calls[0] == 1:
+                return False, 9999.0  # huge backoff
+            return True, 0.0
+
+        bot._stream_edit = MagicMock(side_effect=rate_limited_edit)
+
+        tick = [0]
+
+        def stop_after_three():
+            tick[0] += 1
+            return tick[0] >= 3
+
+        bot._is_pending_delivered = stop_after_three
+        bot._tmux_session_exists = MagicMock(return_value=True)
+        bot._heartbeat_stop = threading.Event()
+
+        with patch.object(Path, "stat", lambda s: type("S", (), {"st_size": 0})()):
+            bot._streaming_loop(123, 456, time.time())
+
+        # Only 1 edit attempt — subsequent ticks skipped due to 429 backoff
+        assert bot._stream_edit.call_count == 1
+
+    def test_fallback_to_batch_when_no_transcript(self, tmp_path, _patch_deps):
+        """When stream=True but no transcript path, falls back to batch heartbeat."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=True)
+        bot._active_transcript_path = None  # no transcript
+        bot._stream_edit = MagicMock(return_value=(True, 0.0))
+        bot._tmux_session_exists = MagicMock(return_value=True)
+
+        call_count = [0]
+
+        def delivered_after_one():
+            call_count[0] += 1
+            return call_count[0] >= 2
+
+        bot._is_pending_delivered = delivered_after_one
+        bot._heartbeat_stop = threading.Event()
+        bot._start_heartbeat(123, 456)
+        if bot._heartbeat_thread:
+            bot._heartbeat_thread.join(timeout=35)
+
+        # Batch mode: edit_message called, _stream_edit not called
+        bot.edit_message.assert_called()
+        bot._stream_edit.assert_not_called()
+
+    def test_mid_loop_delivery_breaks_without_edit(self, tmp_path, _patch_deps):
+        """If _is_pending_delivered flips True mid-loop, loop breaks with no _stream_edit."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=True)
+        transcript = tmp_path / "transcript.jsonl"
+        bot._active_transcript_path = transcript
+
+        entry = _assistant_entry([{"type": "text", "text": "Should not be sent"}])
+        _write_transcript(transcript, [entry])
+
+        delivered = [False]
+
+        def flip_on_second_check():
+            if delivered[0]:
+                return True
+            delivered[0] = True
+            return False
+
+        bot._is_pending_delivered = flip_on_second_check
+        bot._tmux_session_exists = MagicMock(return_value=True)
+        bot._stream_edit = MagicMock(return_value=(True, 0.0))
+        bot._heartbeat_stop = threading.Event()
+
+        with patch.object(Path, "stat", lambda s: type("S", (), {"st_size": 0})()):
+            bot._streaming_loop(123, 456, time.time())
+
+        bot._stream_edit.assert_not_called()
+
+    def test_stream_flag_wired_from_init(self, tmp_path, _patch_deps):
+        """stream=True in constructor sets self._stream."""
+        bot = _make_bot(tmp_path, _patch_deps, stream=True)
+        assert bot._stream is True
+
+    def test_stream_default_false(self, tmp_path, _patch_deps):
+        """stream defaults to False."""
+        bot = _make_bot(tmp_path, _patch_deps)
+        assert bot._stream is False