diff --git a/CHANGELOG.md b/CHANGELOG.md
index ce2fc4a..112f70f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -26,6 +26,10 @@ Format: [Keep a Changelog](https://keepachangelog.com/en/1.1.0/) · semantic ver
 
 ### Fixed
 
+- **fix(transform):** account for reflowed `↵` segments as packed inline
+  glyphs when truncating oversized tool results, so the renderer uses the
+  available page budget instead of discarding most short log lines before
+  imaging. (thanks @dex0shubham)
 - **fix(anthropic):** preserve native-system provenance when session
   configuration is rendered into user-role images. (thanks @alteixeira20)
 - **fix(transform):** keep Claude Code automode rules, permissions, severity
diff --git a/src/core/transform.ts b/src/core/transform.ts
index ae001d6..e8246f9 100644
--- a/src/core/transform.ts
+++ b/src/core/transform.ts
@@ -1371,13 +1371,29 @@ export function truncateForBudget(
   const originalLines = lines.length;
   const originalChars = text.length;
 
+  // Reflow joins logical lines with the inline ↵ glyph. The renderer does not
+  // break on that sentinel, so many logical segments share one visual row.
+  // Charge only the packed-row delta; charging lineRows() per segment wastes
+  // most of the image budget on short reflowed log lines.
+  const reflowed = nlChar === NL_SENTINEL;
+  const packedRows = (chars: number): number =>
+    Math.ceil(chars / Math.max(1, cols));
+  const rowCost = (
+    segment: string,
+    priorChars: number,
+    addedChars: number,
+  ): number =>
+    reflowed
+      ? packedRows(priorChars + addedChars) - packedRows(priorChars)
+      : lineRows(segment, cols);
+
   if (shape === 'structured') {
     let rows = 0;
     let chars = 0;
     let cut = 0;
     for (let i = 0; i < lines.length; i++) {
-      const r = lineRows(lines[i]!, cols);
       const c = lines[i]!.length + (i > 0 ? 1 : 0);
+      const r = rowCost(lines[i]!, chars, c);
       if (rows + r > totalRowBudget || chars + c > totalCharBudget) break;
       rows += r;
       chars += c;
@@ -1412,8 +1428,8 @@ export function truncateForBudget(
   let headChars = 0;
   let headCut = 0;
   for (let i = 0; i < lines.length; i++) {
-    const r = lineRows(lines[i]!, cols);
     const c = lines[i]!.length + (i > 0 ? 1 : 0);
+    const r = rowCost(lines[i]!, headChars, c);
     if (headRows + r > headRowBudget || headChars + c > headCharBudget) break;
     headRows += r;
     headChars += c;
@@ -1424,8 +1440,8 @@ export function truncateForBudget(
   let tailChars = 0;
   let tailStart = lines.length;
   for (let i = lines.length - 1; i >= headCut; i--) {
-    const r = lineRows(lines[i]!, cols);
     const c = lines[i]!.length + (i < lines.length - 1 ? 1 : 0);
+    const r = rowCost(lines[i]!, tailChars, c);
     if (tailRows + r > tailRowBudget || tailChars + c > tailCharBudget) break;
     tailRows += r;
     tailChars += c;
diff --git a/tests/paging.test.ts b/tests/paging.test.ts
index bbb8ae5..13de300 100644
--- a/tests/paging.test.ts
+++ b/tests/paging.test.ts
@@ -28,6 +28,7 @@ import {
   DENSE_CONTENT_CHARS_PER_IMAGE,
   DENSE_CONTENT_COLS,
   DENSE_RENDER_STYLE,
+  NL_SENTINEL,
   READABLE_CHARS_PER_IMAGE,
   renderTextToPngsWithCharLimit,
 } from '../src/core/render.js';
@@ -331,6 +332,27 @@ describe('truncateForBudget', () => {
     expect(reportedOmittedLines).toBeLessThan(originalLines);
   });
 
+  it('does not over-truncate reflowed text whose sentinels pack into visual rows', () => {
+    const segments: string[] = [];
+    for (let i = 0; i < 10_000; i++) {
+      segments.push(`2026-05-18T12:00:00Z entry ${i} payload content here`);
+    }
+    const reflowed = segments.join(NL_SENTINEL);
+    expect(reflowed).not.toContain('\n');
+
+    const { text: out, truncated } = truncateForBudget(
+      reflowed,
+      10,
+      DENSE_CONTENT_COLS,
+    );
+
+    expect(truncated).toBe(true);
+    expect(out.length).toBeGreaterThan(150_000);
+    expect(out).toMatch(/Showing first \d+ lines and last \d+ lines/);
+    expect(out).toContain('entry 0');
+    expect(out).toContain('entry 9999');
+  });
+
   it('always shows at least one head line even on degenerate input', () => {
     // Single huge line — bigger than budget. Should still render with marker.
     const text = 'x'.repeat(500_000);
@@ -460,10 +482,10 @@ describe('paging end-to-end (transformRequest)', () => {
     );
     const { info } = await transformRequest(req, { multiCol: 1, charsPerToken: 2 });
     expect(info.truncatedToolResults).toBe(2);
-    // Both should have been truncated → omittedChars roughly doubled. The
-    // exact bound depends on renderer config: at multiCol=1 each image
-    // packs ~19.5k chars worst-case. Threshold below covers the single-col case.
-    expect(info.omittedChars).toBeGreaterThan(600_000);
+    // Both are truncated. With packed-row accounting each result now uses the
+    // image budget it was assigned instead of discarding roughly five sixths
+    // of the content before rendering, so about 500k chars remain omitted.
+    expect(info.omittedChars).toBeGreaterThan(400_000);
   });
 
   it('handles array-shaped tool_result content', async () => {