diff --git a/cortex-tui/src/events.rs b/cortex-tui/src/events.rs
index 989269da..a8476a6a 100644
--- a/cortex-tui/src/events.rs
+++ b/cortex-tui/src/events.rs
@@ -59,6 +59,14 @@ pub enum ToolEvent {
         error: String,
         duration: std::time::Duration,
     },
+    /// Subagent todo list was updated (from TodoWrite tool).
+    /// Used to update the UI's SubagentTaskDisplay with real-time todo progress.
+    TodoUpdated {
+        /// Session ID of the subagent (e.g., "subagent_<tool_call_id>")
+        session_id: String,
+        /// Todo items: (content, status) where status is "pending", "in_progress", or "completed"
+        todos: Vec<(String, String)>,
+    },
 }
 
 /// Events from subagent executions.
diff --git a/cortex-tui/src/runner/event_loop.rs b/cortex-tui/src/runner/event_loop.rs
index 422a6a69..00896003 100644
--- a/cortex-tui/src/runner/event_loop.rs
+++ b/cortex-tui/src/runner/event_loop.rs
@@ -753,9 +753,38 @@ impl EventLoop {
                     )
                     .collect();
 
+                // Maximum size for tool result output to prevent HTTP 413 Payload Too Large
+                const MAX_TOOL_OUTPUT_SIZE: usize = 32_000; // 32KB per tool result
+
                 for (tc_id, tc_name, tc_args) in &iteration_tool_calls {
                     tracing::info!("Subagent executing tool: {} ({})", tc_name, tc_id);
 
+                    // If this is TodoWrite, parse and send todo updates to UI
+                    if tc_name == "TodoWrite" {
+                        if let Some(todos_arr) = tc_args.get("todos").and_then(|v| v.as_array()) {
+                            let todos: Vec<(String, String)> = todos_arr
+                                .iter()
+                                .filter_map(|t| {
+                                    let content = t.get("content").and_then(|v| v.as_str())?;
+                                    let status = t
+                                        .get("status")
+                                        .and_then(|v| v.as_str())
+                                        .unwrap_or("pending");
+                                    Some((content.to_string(), status.to_string()))
+                                })
+                                .collect();
+
+                            if !todos.is_empty() {
+                                let _ = tool_tx
+                                    .send(ToolEvent::TodoUpdated {
+                                        session_id: format!("subagent_{}", id),
+                                        todos,
+                                    })
+                                    .await;
+                            }
+                        }
+                    }
+
                     let result = registry.execute(tc_name, tc_args.clone()).await;
                     match result {
                         Ok(tool_result) => {
@@ -765,7 +794,20 @@ impl EventLoop {
                                 "failed"
                             };
                             tool_calls_executed.push(format!("{}: {}", tc_name, status));
-                            tool_results.push((tc_id.clone(), tool_result.output));
+
+                            // Truncate large tool outputs to prevent payload too large errors
+                            let output = if tool_result.output.len() > MAX_TOOL_OUTPUT_SIZE {
+                                let truncated = &tool_result.output[..MAX_TOOL_OUTPUT_SIZE];
+                                format!(
+                                    "{}...\n\n[Output truncated: {} bytes total, showing first {} bytes]",
+                                    truncated,
+                                    tool_result.output.len(),
+                                    MAX_TOOL_OUTPUT_SIZE
+                                )
+                            } else {
+                                tool_result.output
+                            };
+                            tool_results.push((tc_id.clone(), output));
                         }
                         Err(e) => {
                             let error_msg = format!("Error executing {}: {}", tc_name, e);
@@ -3384,6 +3426,43 @@ impl EventLoop {
                     }
                 }
             }
+
+            ToolEvent::TodoUpdated { session_id, todos } => {
+                // Update the subagent's todo list in the UI
+                use crate::app::{SubagentTodoItem, SubagentTodoStatus};
+
+                tracing::debug!(
+                    "Subagent todo list updated: {} ({} items)",
+                    session_id,
+                    todos.len()
+                );
+
+                self.app_state.update_subagent(&session_id, |task| {
+                    task.todos = todos
+                        .iter()
+                        .map(|(content, status)| {
+                            let status = match status.as_str() {
+                                "in_progress" => SubagentTodoStatus::InProgress,
+                                "completed" => SubagentTodoStatus::Completed,
+                                _ => SubagentTodoStatus::Pending,
+                            };
+                            SubagentTodoItem {
+                                content: content.clone(),
+                                status,
+                            }
+                        })
+                        .collect();
+
+                    // Update activity based on in-progress item
+                    if let Some(in_progress) = task
+                        .todos
+                        .iter()
+                        .find(|t| matches!(t.status, SubagentTodoStatus::InProgress))
+                    {
+                        task.current_activity = in_progress.content.clone();
+                    }
+                });
+            }
         }
     }