diff --git a/index.ts b/index.ts
index 81340c0..d6f214f 100644
--- a/index.ts
+++ b/index.ts
@@ -1020,10 +1020,13 @@ export default function piIntercomExtension(pi: ExtensionAPI) {
     }
   });
 
-  pi.registerMessageRenderer("intercom_message", (message, _options, theme) => {
+  pi.registerMessageRenderer("intercom_message", (message, options, theme) => {
     const details = message.details as { from: SessionInfo; message: Message; replyCommand?: string; bodyText?: string } | undefined;
     if (!details) return undefined;
-    return new InlineMessageComponent(details.from, details.message, theme, details.replyCommand, details.bodyText);
+    // CustomMessageComponent calls our renderer with { expanded } on setExpanded/rebuild.
+    // Collapse intercom when tool outputs are collapsed, expand when tool outputs expand.
+    const collapsed = !options.expanded;
+    return new InlineMessageComponent(details.from, details.message, theme, details.replyCommand, details.bodyText, collapsed);
   });
 
   const childOrchestratorMetadata = readChildOrchestratorMetadata();
diff --git a/ui/inline-message.ts b/ui/inline-message.ts
index 2a9a7f1..e330b1b 100644
--- a/ui/inline-message.ts
+++ b/ui/inline-message.ts
@@ -3,32 +3,62 @@ import { truncateToWidth, visibleWidth, wrapTextWithAnsi } from "@mariozechner/p
 import type { Theme } from "@mariozechner/pi-coding-agent";
 import type { SessionInfo, Message } from "../types.js";
 
+const CTRL_O_HINT = "ctrl+o";
+
 export class InlineMessageComponent implements Component {
   private from: SessionInfo;
   private message: Message;
   private theme: Theme;
   private replyCommand?: string;
   private bodyText?: string;
+  private collapsed: boolean;
 
-  constructor(from: SessionInfo, message: Message, theme: Theme, replyCommand?: string, bodyText?: string) {
+  constructor(from: SessionInfo, message: Message, theme: Theme, replyCommand?: string, bodyText?: string, collapsed = false) {
     this.from = from;
     this.message = message;
     this.theme = theme;
     this.replyCommand = replyCommand;
     this.bodyText = bodyText;
+    this.collapsed = collapsed;
   }
 
   invalidate(): void {}
 
   render(width: number): string[] {
+    const senderName = this.from.name || this.from.id.slice(0, 8);
+    const bodyWidth = Math.max(1, width - 2);
+
+    if (this.collapsed) {
+      // Three-line collapsed view: matches expanded box pattern
+      const borderChar = "─";
+      const headerLabel = ` 📨 From: ${senderName} (${this.from.cwd}) `;
+      const hint = ` (${CTRL_O_HINT}) `;
+      const headerText = truncateToWidth(headerLabel, bodyWidth - visibleWidth(hint), "");
+      const headerPad = Math.max(0, bodyWidth - visibleWidth(headerText) - visibleWidth(hint));
+      const topLine = `╭${headerText}${borderChar.repeat(headerPad)}${hint}╮`;
+
+      // Middle line: follows same pattern as expanded — │${text}${padding}│
+      const rawPreview = (this.bodyText || this.message.content.text).replace(/\n/g, " ");
+      const preview = truncateToWidth(rawPreview, bodyWidth - 2, "...");
+      const previewContent = ` ${preview}`;
+      const midPadding = Math.max(0, bodyWidth - visibleWidth(previewContent));
+      const midLine = `│${previewContent}${" ".repeat(midPadding)}│`;
+
+      const bottomLine = `╰${borderChar.repeat(bodyWidth)}╯`;
+
+      return [
+        this.theme.fg("accent", topLine),
+        this.theme.fg("accent", midLine),
+        this.theme.fg("accent", bottomLine),
+      ];
+    }
+
     const lines: string[] = [];
     const borderChar = "─";
     if (width < 3) {
-      return [truncateToWidth(`From ${this.from.name || this.from.id.slice(0, 8)}`, width)];
+      return [truncateToWidth(`From ${senderName}`, width)];
     }
-    const bodyWidth = Math.max(1, width - 2);
 
-    const senderName = this.from.name || this.from.id.slice(0, 8);
     const header = ` 📨 From: ${senderName} (${this.from.cwd}) `;
     const headerText = truncateToWidth(header, bodyWidth, "");
     const headerPadding = Math.max(0, bodyWidth - visibleWidth(headerText));