diff --git a/code_puppy/plugins/prompt_newline/__init__.py b/code_puppy/plugins/prompt_newline/__init__.py
new file mode 100644
index 000000000..1a6e61d2d
--- /dev/null
+++ b/code_puppy/plugins/prompt_newline/__init__.py
@@ -0,0 +1,13 @@
+"""Plugin: drop user input onto a fresh line below the prompt chrome.
+
+When enabled, transforms
+
+    🐶 puppy [agent] [model] (~/very/long/cwd) >>> typed text
+
+into
+
+    🐶 puppy [agent] [model] (~/very/long/cwd) >>>
+    typed text
+
+Toggle at runtime with ``/prompt_newline [on|off]``. Persisted in puppy.cfg.
+"""
diff --git a/code_puppy/plugins/prompt_newline/config.py b/code_puppy/plugins/prompt_newline/config.py
new file mode 100644
index 000000000..f5198f736
--- /dev/null
+++ b/code_puppy/plugins/prompt_newline/config.py
@@ -0,0 +1,21 @@
+"""Plugin-local config for the prompt_newline plugin."""
+
+from __future__ import annotations
+
+from code_puppy.config import get_value, set_config_value
+
+_CONFIG_KEY = "prompt_newline"
+_TRUTHY = ("true", "1", "yes", "on")
+
+
+def is_enabled() -> bool:
+    """Return True if the prompt_newline hack is enabled. Default: False."""
+    cfg_val = get_value(_CONFIG_KEY)
+    if cfg_val is None:
+        return False
+    return str(cfg_val).strip().lower() in _TRUTHY
+
+
+def set_enabled(enabled: bool) -> None:
+    """Persist the on/off switch to puppy.cfg."""
+    set_config_value(_CONFIG_KEY, "true" if enabled else "false")
diff --git a/code_puppy/plugins/prompt_newline/register_callbacks.py b/code_puppy/plugins/prompt_newline/register_callbacks.py
new file mode 100644
index 000000000..22c4e4365
--- /dev/null
+++ b/code_puppy/plugins/prompt_newline/register_callbacks.py
@@ -0,0 +1,163 @@
+"""Register callbacks for the prompt_newline plugin.
+
+This plugin is a tiny ergonomics hack: it places the user's input cursor on a
+*new line* below the puppy/agent/model/cwd chrome, so long working-directory
+paths don't squeeze the typing area.
+
+It hooks two things:
+
+* ``startup`` — wraps ``get_prompt_with_active_model`` so the FormattedText it
+  returns gets a trailing ``\\n`` appended **at call time** (so the slash
+  command toggle takes effect immediately, no restart needed).
+* ``custom_command`` / ``custom_command_help`` — exposes ``/prompt_newline``
+  for runtime on/off, persisted via ``puppy.cfg``.
+
+Default: OFF. Opt-in only.
+"""
+
+from __future__ import annotations
+
+from typing import List, Optional, Tuple
+
+from code_puppy.callbacks import register_callback
+from code_puppy.plugins.prompt_newline.config import is_enabled, set_enabled
+
+_COMMAND_NAME = "prompt_newline"
+_PATCH_ATTR = "_prompt_newline_original"
+
+
+def _emit_info(message: str) -> None:
+    from code_puppy.messaging import emit_info
+
+    emit_info(message)
+
+
+def _emit_error(message: str) -> None:
+    from code_puppy.messaging import emit_error
+
+    emit_error(message)
+
+
+def _emit_success(message: str) -> None:
+    from code_puppy.messaging import emit_success
+
+    emit_success(message)
+
+
+def _append_newline(formatted_text):
+    """Return a new FormattedText with a trailing newline tuple.
+
+    ``FormattedText`` is a ``list`` subclass of ``(style, text)`` tuples, so we
+    rebuild it rather than mutating in place — the upstream caller may cache
+    or reuse the returned object.
+    """
+    from prompt_toolkit.formatted_text import FormattedText
+
+    try:
+        return FormattedText(list(formatted_text) + [("", "\n")])
+    except Exception:
+        # Defensive: never break the prompt if the upstream shape changes.
+        return formatted_text
+
+
+def _install_prompt_patch() -> None:
+    """Monkey-patch ``get_prompt_with_active_model`` to honor ``is_enabled()``.
+
+    Idempotent: re-running won't double-wrap.
+    """
+    from code_puppy.command_line import prompt_toolkit_completion as ptc
+
+    if getattr(ptc, _PATCH_ATTR, None) is not None:
+        return  # Already patched
+
+    original = ptc.get_prompt_with_active_model
+    setattr(ptc, _PATCH_ATTR, original)
+
+    def patched(base: str = ">>> "):
+        result = original(base)
+        if is_enabled():
+            return _append_newline(result)
+        return result
+
+    ptc.get_prompt_with_active_model = patched
+
+
+def _on_startup() -> None:
+    try:
+        _install_prompt_patch()
+    except Exception as exc:
+        # Plugins must fail gracefully — never crash the app.
+        _emit_error(f"prompt_newline: failed to install prompt patch — {exc}")
+
+
+def _custom_help() -> List[Tuple[str, str]]:
+    return [
+        (
+            _COMMAND_NAME,
+            "Toggle placing user input on a new line below the prompt chrome",
+        )
+    ]
+
+
+def _parse_toggle_arg(command: str) -> Optional[bool]:
+    """Parse ``/prompt_newline [on|off|true|false|toggle]``.
+
+    Returns:
+        True/False for an explicit set, or ``None`` to mean "flip current".
+    """
+    tokens = command.strip().split()
+    if len(tokens) < 2:
+        return None  # bare /prompt_newline → flip
+    arg = tokens[1].lower()
+    if arg in ("on", "true", "1", "yes", "enable", "enabled"):
+        return True
+    if arg in ("off", "false", "0", "no", "disable", "disabled"):
+        return False
+    if arg in ("toggle",):
+        return None
+    raise ValueError(arg)
+
+
+def _handle_prompt_newline_command(command: str) -> bool:
+    try:
+        target = _parse_toggle_arg(command)
+    except ValueError as exc:
+        _emit_error(
+            f"/{_COMMAND_NAME}: unknown argument '{exc.args[0]}'. "
+            "Usage: /prompt_newline [on|off|toggle]"
+        )
+        return True
+
+    if target is None:
+        target = not is_enabled()
+
+    set_enabled(target)
+    state = "ON" if target else "OFF"
+    _emit_success(f"🐶 prompt_newline is now {state}")
+    if target:
+        _emit_info("Your input will appear on a fresh line below the prompt chrome.")
+    else:
+        _emit_info("Prompt is back to single-line mode.")
+    return True
+
+
+def _handle_custom_command(command: str, name: str):
+    if name != _COMMAND_NAME:
+        return None
+    return _handle_prompt_newline_command(command)
+
+
+register_callback("startup", _on_startup)
+register_callback("custom_command", _handle_custom_command)
+register_callback("custom_command_help", _custom_help)
+
+
+__all__ = [
+    "_append_newline",
+    "_custom_help",
+    "_handle_custom_command",
+    "_handle_prompt_newline_command",
+    "_install_prompt_patch",
+    "_on_startup",
+    "_parse_toggle_arg",
+]
diff --git a/tests/plugins/test_prompt_newline_plugin.py b/tests/plugins/test_prompt_newline_plugin.py
new file mode 100644
index 000000000..962bfd679
--- /dev/null
+++ b/tests/plugins/test_prompt_newline_plugin.py
@@ -0,0 +1,181 @@
+"""Tests for the prompt_newline plugin."""
+
+from __future__ import annotations
+
+import importlib
+import sys
+from unittest.mock import MagicMock, patch
+
+import pytest
+
+
+def _plugin_module():
+    sys.modules.setdefault("dbos", MagicMock())
+    return importlib.import_module(
+        "code_puppy.plugins.prompt_newline.register_callbacks"
+    )
+
+
+def _config_module():
+    return importlib.import_module("code_puppy.plugins.prompt_newline.config")
+
+
+def test_custom_help_lists_command():
+    entries = dict(_plugin_module()._custom_help())
+    assert "prompt_newline" in entries
+
+
+def test_handle_custom_command_ignores_unrelated_names():
+    assert _plugin_module()._handle_custom_command("/nope", "nope") is None
+
+
+def test_parse_toggle_arg_defaults_to_none():
+    assert _plugin_module()._parse_toggle_arg("/prompt_newline") is None
+
+
+@pytest.mark.parametrize("arg", ["on", "true", "1", "yes", "ENABLE"])
+def test_parse_toggle_arg_truthy(arg):
+    assert _plugin_module()._parse_toggle_arg(f"/prompt_newline {arg}") is True
+
+
+@pytest.mark.parametrize("arg", ["off", "false", "0", "no", "Disable"])
+def test_parse_toggle_arg_falsy(arg):
+    assert _plugin_module()._parse_toggle_arg(f"/prompt_newline {arg}") is False
+
+
+def test_parse_toggle_arg_toggle_keyword_returns_none():
+    assert _plugin_module()._parse_toggle_arg("/prompt_newline toggle") is None
+
+
+def test_parse_toggle_arg_rejects_garbage():
+    with pytest.raises(ValueError):
+        _plugin_module()._parse_toggle_arg("/prompt_newline banana")
+
+
+def test_append_newline_returns_formatted_text_with_trailing_newline():
+    from prompt_toolkit.formatted_text import FormattedText
+
+    original = FormattedText([("class:arrow", ">>> ")])
+    result = _plugin_module()._append_newline(original)
+
+    assert isinstance(result, FormattedText)
+    assert list(result)[-1] == ("", "\n")
+    # original must not be mutated
+    assert ("", "\n") not in list(original)
+
+
+def test_install_prompt_patch_is_idempotent():
+    module = _plugin_module()
+    from code_puppy.command_line import prompt_toolkit_completion as ptc
+
+    original = ptc.get_prompt_with_active_model
+    try:
+        module._install_prompt_patch()
+        first_patched = ptc.get_prompt_with_active_model
+        module._install_prompt_patch()
+        second_patched = ptc.get_prompt_with_active_model
+        assert first_patched is second_patched
+        # Original is preserved on the module for restoration
+        assert getattr(ptc, "_prompt_newline_original") is original
+    finally:
+        ptc.get_prompt_with_active_model = original
+        if hasattr(ptc, "_prompt_newline_original"):
+            delattr(ptc, "_prompt_newline_original")
+
+
+def test_patched_prompt_appends_newline_only_when_enabled():
+    module = _plugin_module()
+    from code_puppy.command_line import prompt_toolkit_completion as ptc
+
+    original = ptc.get_prompt_with_active_model
+    try:
+        module._install_prompt_patch()
+
+        with patch(
+            "code_puppy.plugins.prompt_newline.register_callbacks.is_enabled",
+            return_value=False,
+        ):
+            disabled_result = ptc.get_prompt_with_active_model()
+
+        with patch(
+            "code_puppy.plugins.prompt_newline.register_callbacks.is_enabled",
+            return_value=True,
+        ):
+            enabled_result = ptc.get_prompt_with_active_model()
+
+        assert ("", "\n") not in list(disabled_result)
+        assert list(enabled_result)[-1] == ("", "\n")
+    finally:
+        ptc.get_prompt_with_active_model = original
+        if hasattr(ptc, "_prompt_newline_original"):
+            delattr(ptc, "_prompt_newline_original")
+
+
+def test_handle_command_persists_explicit_on(tmp_path, monkeypatch):
+    # Point the config at a throwaway file so we don't trash real puppy.cfg
+    cfg_file = tmp_path / "puppy.cfg"
+    monkeypatch.setattr("code_puppy.config.CONFIG_FILE", str(cfg_file))
+
+    module = _plugin_module()
+    cfg = _config_module()
+
+    with (
+        patch(
+            "code_puppy.plugins.prompt_newline.register_callbacks._emit_success"
+        ) as mock_success,
+        patch("code_puppy.plugins.prompt_newline.register_callbacks._emit_info"),
+    ):
+        result = module._handle_custom_command("/prompt_newline on", "prompt_newline")
+
+    assert result is True
+    assert cfg.is_enabled() is True
+    assert "ON" in str(mock_success.call_args)
+
+
+def test_handle_command_flips_when_no_arg(tmp_path, monkeypatch):
+    cfg_file = tmp_path / "puppy.cfg"
+    monkeypatch.setattr("code_puppy.config.CONFIG_FILE", str(cfg_file))
+
+    module = _plugin_module()
+    cfg = _config_module()
+
+    cfg.set_enabled(False)
+    with (
+        patch("code_puppy.plugins.prompt_newline.register_callbacks._emit_success"),
+        patch("code_puppy.plugins.prompt_newline.register_callbacks._emit_info"),
+    ):
+        module._handle_custom_command("/prompt_newline", "prompt_newline")
+    assert cfg.is_enabled() is True
+
+    with (
+        patch("code_puppy.plugins.prompt_newline.register_callbacks._emit_success"),
+        patch("code_puppy.plugins.prompt_newline.register_callbacks._emit_info"),
+    ):
+        module._handle_custom_command("/prompt_newline", "prompt_newline")
+    assert cfg.is_enabled() is False
+
+
+def test_handle_command_rejects_garbage_arg(tmp_path, monkeypatch):
+    cfg_file = tmp_path / "puppy.cfg"
+    monkeypatch.setattr("code_puppy.config.CONFIG_FILE", str(cfg_file))
+
+    module = _plugin_module()
+
+    with patch(
+        "code_puppy.plugins.prompt_newline.register_callbacks._emit_error"
+    ) as mock_error:
+        result = module._handle_custom_command(
+            "/prompt_newline banana", "prompt_newline"
+        )
+
+    assert result is True
+    mock_error.assert_called_once()
+    assert "banana" in str(mock_error.call_args)
+
+
+def test_is_enabled_defaults_to_false(tmp_path, monkeypatch):
+    cfg_file = tmp_path / "puppy.cfg"
+    monkeypatch.setattr("code_puppy.config.CONFIG_FILE", str(cfg_file))
+
+    cfg = _config_module()
+    assert cfg.is_enabled() is False