diff --git a/crates/goose-cli/src/session/mod.rs b/crates/goose-cli/src/session/mod.rs
index 6c206a9a..5c9ea253 100644
--- a/crates/goose-cli/src/session/mod.rs
+++ b/crates/goose-cli/src/session/mod.rs
@@ -1085,8 +1085,12 @@ impl CliSession {
                                                 };
                                                 (formatted, subagent_id.map(str::to_string), notification_type.map(str::to_string))
                                             } else if let Some(Value::String(output)) = o.get("output") {
-                                                // Fallback for other MCP notification types
-                                                (output.to_owned(), None, None)
+                                                // Extract type if present (e.g., "shell_output")
+                                                let notification_type = o.get("type")
+                                                    .and_then(|v| v.as_str())
+                                                    .map(str::to_string);
+
+                                                (output.to_owned(), None, notification_type)
                                             } else if let Some(result) = format_task_execution_notification(data) {
                                                 result
                                             } else {
@@ -1121,6 +1125,14 @@ impl CliSession {
                                                 print!("{}", formatted_message);
                                                 std::io::stdout().flush().unwrap();
                                             }
+                                        } else if notification_type == "shell_output" {
+                                            // Hide spinner, print shell output, spinner will resume
+                                            if interactive {
+                                                let _ = progress_bars.hide();
+                                            }
+                                            if !is_json_mode {
+                                                println!("{}", formatted_message);
+                                            }
                                         }
                                     }
                                     else if output::is_showing_thinking() {