diff --git a/src/terminal/stream_readonly.zig b/src/terminal/stream_readonly.zig
index 9ffe617bd..87b0d9788 100644
--- a/src/terminal/stream_readonly.zig
+++ b/src/terminal/stream_readonly.zig
@@ -213,9 +213,22 @@ pub const Handler = struct {
         self: *Handler,
         cmd: Action.SemanticPrompt,
     ) !void {
-        try self.terminal.semanticPrompt(cmd);
-
         switch (cmd.action) {
+            .fresh_line_new_prompt => {
+                const kind = cmd.readOption(.prompt_kind) orelse .initial;
+                switch (kind) {
+                    .initial, .right => {
+                        self.terminal.markSemanticPrompt(.prompt);
+                        if (cmd.readOption(.redraw)) |redraw| {
+                            self.terminal.flags.shell_redraws_prompt = redraw;
+                        }
+                    },
+                    .continuation, .secondary => {
+                        self.terminal.markSemanticPrompt(.prompt_continuation);
+                    },
+                }
+            },
+
             .end_prompt_start_input => self.terminal.markSemanticPrompt(.input),
             .end_input_start_output => self.terminal.markSemanticPrompt(.command),
             .end_command => self.terminal.screens.active.cursor.page_row.semantic_prompt = .input,
@@ -226,14 +239,12 @@ pub const Handler = struct {
             // though we should handle them eventually.
             .end_prompt_start_input_terminate_eol,
             .new_command,
+            .fresh_line,
             .prompt_start,
             => {},
-
-            // Handled by the new action above
-            .fresh_line,
-            .fresh_line_new_prompt,
-            => {},
         }
+
+        try self.terminal.semanticPrompt(cmd);
     }
 
     fn setMode(self: *Handler, mode: modes.Mode, enabled: bool) !void {
diff --git a/src/termio/stream_handler.zig b/src/termio/stream_handler.zig
index 63094b106..b725649f1 100644
--- a/src/termio/stream_handler.zig
+++ b/src/termio/stream_handler.zig
@@ -320,7 +320,7 @@ pub const StreamHandler = struct {
             .progress_report => self.progressReport(value),
             .start_hyperlink => try self.startHyperlink(value.uri, value.id),
             .clipboard_contents => try self.clipboardContents(value.kind, value.data),
-            .semantic_prompt => self.semanticPrompt(value),
+            .semantic_prompt => try self.semanticPrompt(value),
             .mouse_shape => try self.setMouseShape(value),
             .configure_charset => self.configureCharset(value.slot, value.charset),
             .set_attribute => {
@@ -1069,7 +1069,7 @@ pub const StreamHandler = struct {
     fn semanticPrompt(
         self: *StreamHandler,
         cmd: Stream.Action.SemanticPrompt,
-    ) void {
+    ) !void {
         switch (cmd.action) {
             .fresh_line_new_prompt => {
                 const kind = cmd.readOption(.prompt_kind) orelse .initial;
@@ -1113,6 +1113,10 @@ pub const StreamHandler = struct {
             .prompt_start,
             => {},
         }
+
+        // We do this last so failures are still processed correctly
+        // above.
+        try self.terminal.semanticPrompt(cmd);
     }
 
     fn reportPwd(self: *StreamHandler, url: []const u8) !void {