diff --git a/crates/g3-cli/src/commands.rs b/crates/g3-cli/src/commands.rs
index 71b0600..86fece1 100644
--- a/crates/g3-cli/src/commands.rs
+++ b/crates/g3-cli/src/commands.rs
@@ -156,7 +156,10 @@ pub async fn handle_command<W: UiWriter>(
                         } else {
                             G3Status::progress(&format!("loading {}", file_path));
                             G3Status::done();
-                            execute_task_with_retry(agent, prompt, show_prompt, show_code, output).await;
+                            let completed = execute_task_with_retry(agent, prompt, show_prompt, show_code, output).await;
+                            if !completed {
+                                return Ok(false);
+                            }
                         }
                     }
                     Err(e) => {
@@ -383,7 +386,10 @@ pub async fn handle_command<W: UiWriter>(
                             
                             // Auto-submit the project status prompt
                             let prompt = "what is the current state of the project? and what is your suggested next best step?";
-                            execute_task_with_retry(agent, prompt, show_prompt, show_code, output).await;
+                            let completed = execute_task_with_retry(agent, prompt, show_prompt, show_code, output).await;
+                            if !completed {
+                                return Ok(false);
+                            }
                         } else {
                             output.print("❌ Failed to set project content in agent context.");
                         }
diff --git a/crates/g3-cli/src/interactive.rs b/crates/g3-cli/src/interactive.rs
index 6feb226..6e5530f 100644
--- a/crates/g3-cli/src/interactive.rs
+++ b/crates/g3-cli/src/interactive.rs
@@ -210,7 +210,7 @@ pub async fn run_interactive<W: UiWriter>(
                     }
 
                     // Process the multiline input
-                    execute_task_with_retry(
+                    let completed = execute_task_with_retry(
                         &mut agent,
                         &input,
                         show_prompt,
@@ -218,6 +218,9 @@ pub async fn run_interactive<W: UiWriter>(
                         &output,
                     )
                     .await;
+                    if !completed {
+                        break;
+                    }
 
                     // Send auto-memory reminder if enabled and tools were called
                     // Skip per-turn reminders when from_agent_mode - we'll send once on exit
@@ -243,13 +246,16 @@ pub async fn run_interactive<W: UiWriter>(
 
                     // Check for control commands
                     if input.starts_with('/') {
-                        if handle_command(&input, &mut agent, workspace_path, &output, &mut active_project, &mut rl, show_prompt, show_code).await? {
+                        let should_continue = handle_command(&input, &mut agent, workspace_path, &output, &mut active_project, &mut rl, show_prompt, show_code).await?;
+                        if should_continue {
                             continue;
+                        } else {
+                            break;
                         }
                     }
 
                     // Process the single line input
-                    execute_task_with_retry(
+                    let completed = execute_task_with_retry(
                         &mut agent,
                         &input,
                         show_prompt,
@@ -257,6 +263,9 @@ pub async fn run_interactive<W: UiWriter>(
                         &output,
                     )
                     .await;
+                    if !completed {
+                        break;
+                    }
 
                     // Send auto-memory reminder if enabled and tools were called
                     // Skip per-turn reminders when from_agent_mode - we'll send once on exit
@@ -269,15 +278,8 @@ pub async fn run_interactive<W: UiWriter>(
             }
             Err(ReadlineError::Interrupted) => {
                 // Ctrl-C pressed
-                if in_multiline {
-                    // Cancel multiline input
-                    output.print("Multi-line input cancelled");
-                    multiline_buffer.clear();
-                    in_multiline = false;
-                } else {
-                    output.print("CTRL-C");
-                }
-                continue;
+                output.print("");
+                break;
             }
             Err(ReadlineError::Eof) => {
                 output.print("CTRL-D");
diff --git a/crates/g3-cli/src/task_execution.rs b/crates/g3-cli/src/task_execution.rs
index 6cd069e..5cc04d9 100644
--- a/crates/g3-cli/src/task_execution.rs
+++ b/crates/g3-cli/src/task_execution.rs
@@ -26,13 +26,14 @@ fn recoverable_error_name(err: &RecoverableError) -> &'static str {
 }
 
 /// Execute a task with retry logic for recoverable errors.
+/// Returns `true` if the task completed normally, `false` if cancelled by Ctrl+C.
 pub async fn execute_task_with_retry<W: UiWriter>(
     agent: &mut Agent<W>,
     input: &str,
     show_prompt: bool,
     show_code: bool,
     output: &SimpleOutput,
-) {
+) -> bool {
     let mut attempt = 0;
 
     output.print("🤔 Thinking...");
@@ -54,7 +55,7 @@ pub async fn execute_task_with_retry<W: UiWriter>(
             _ = tokio::signal::ctrl_c() => {
                 cancel_token_clone.cancel();
                 output.print("\n⚠️  Operation cancelled by user (Ctrl+C)");
-                return;
+                return false;
             }
         };
 
@@ -64,12 +65,12 @@ pub async fn execute_task_with_retry<W: UiWriter>(
                     output.print(&format!("✅ Request succeeded after {} attempts", attempt));
                 }
                 // Response was already displayed during streaming - don't print again
-                return;
+                return true;
             }
             Err(e) => {
                 if e.to_string().contains("cancelled") {
                     output.print("⚠️  Operation cancelled by user");
-                    return;
+                    return false;
                 }
 
                 // Check if this is a recoverable error that we should retry
@@ -99,7 +100,7 @@ pub async fn execute_task_with_retry<W: UiWriter>(
 
                 // For non-recoverable errors or after max retries
                 handle_execution_error(&e, input, output, attempt);
-                return;
+                return true;
             }
         }
     }