diff --git a/apps/desktop/src/components/chat/expandable-block.test.tsx b/apps/desktop/src/components/chat/expandable-block.test.tsx
new file mode 100644
index 000000000000..1fd23d0c8525
--- /dev/null
+++ b/apps/desktop/src/components/chat/expandable-block.test.tsx
@@ -0,0 +1,72 @@
+import { cleanup, fireEvent, render, screen } from '@testing-library/react'
+import { afterEach, describe, expect, it, vi } from 'vitest'
+
+import { ExpandableBlock } from './expandable-block'
+
+// jsdom has no ResizeObserver and reports scrollHeight === 0, so the block
+// never flips to `overflowing` on its own. Stub RO to fire immediately and
+// force a tall scrollHeight on the observed node so the toggle mounts.
+class TestResizeObserver {
+  constructor(private readonly callback: ResizeObserverCallback) {}
+
+  observe(target: Element) {
+    Object.defineProperty(target, 'scrollHeight', { configurable: true, value: 400 })
+    this.callback([{ target } as ResizeObserverEntry], this as unknown as ResizeObserver)
+  }
+
+  unobserve() {}
+  disconnect() {}
+}
+
+afterEach(() => {
+  cleanup()
+  vi.unstubAllGlobals()
+})
+
+describe('ExpandableBlock', () => {
+  it('lets horizontal scroll through and keeps the last line selectable', () => {
+    vi.stubGlobal('ResizeObserver', TestResizeObserver)
+
+    const { container } = render(
+      <ExpandableBlock>
+        <pre data-testid="content">{'const x = 1\n'.repeat(20)}</pre>
+      </ExpandableBlock>
+    )
+
+    const inner = container.querySelector('[data-testid="content"]')!.parentElement!
+    const toggle = screen.getByRole('button', { name: /expand|collapse/i })
+    const fade = toggle.parentElement!
+
+    // Inner container allows horizontal scroll so wide code gets a scrollbar.
+    expect(inner.className).toContain('overflow-x-auto')
+
+    // The full-width fade is a pure cue: it spans the bottom edge but must not
+    // intercept pointer events, so the scrollbar drag and text selection on the
+    // last line pass through to the content underneath.
+    expect(fade.className).toContain('pointer-events-none')
+    expect(fade.className).toContain('inset-x-0')
+
+    // Only the compact toggle is clickable, and it is pinned to the right edge
+    // rather than spanning the full width (the old bug).
+    expect(toggle.className).toContain('pointer-events-auto')
+    expect(toggle.className).toContain('w-9')
+    expect(toggle.className).not.toContain('inset-x-0')
+  })
+
+  it('still toggles expanded state when the compact control is clicked', () => {
+    vi.stubGlobal('ResizeObserver', TestResizeObserver)
+
+    render(
+      <ExpandableBlock>
+        <pre data-testid="content">{'line\n'.repeat(20)}</pre>
+      </ExpandableBlock>
+    )
+
+    const toggle = screen.getByRole('button', { name: 'Expand' })
+    expect(toggle.getAttribute('aria-expanded')).toBe('false')
+
+    fireEvent.click(toggle)
+
+    expect(screen.getByRole('button', { name: 'Collapse' }).getAttribute('aria-expanded')).toBe('true')
+  })
+})
diff --git a/apps/desktop/src/components/chat/expandable-block.tsx b/apps/desktop/src/components/chat/expandable-block.tsx
index 92d2ab08c830..f4a8e1965298 100644
--- a/apps/desktop/src/components/chat/expandable-block.tsx
+++ b/apps/desktop/src/components/chat/expandable-block.tsx
@@ -31,19 +31,30 @@ export function ExpandableBlock({ children, className }: ExpandableBlockProps) {
 
   return (
     <div className="relative">
-      <div className={cn('overflow-y-auto', expanded ? 'max-h-[40dvh]' : 'max-h-[7.5rem]', className)} ref={innerRef}>
+      <div
+        className={cn('overflow-y-auto overflow-x-auto', expanded ? 'max-h-[40dvh]' : 'max-h-[7.5rem]', className)}
+        ref={innerRef}
+      >
         {children}
       </div>
       {overflowing && (
-        <button
-          aria-expanded={expanded}
-          aria-label={expanded ? 'Collapse' : 'Expand'}
-          className="absolute inset-x-0 bottom-0 flex h-7 cursor-pointer items-end justify-center bg-linear-to-t from-(--ui-chat-surface-background) to-transparent pb-1 text-muted-foreground/70 transition-colors hover:text-foreground"
-          onClick={() => setExpanded(v => !v)}
-          type="button"
-        >
-          <ChevronDown className={cn('size-3.5 transition-transform', expanded && 'rotate-180')} />
-        </button>
+        // The fade is a pure overflow cue and must not intercept pointer events:
+        // it spans the full bottom edge (over the horizontal scrollbar of a wide
+        // code block AND the block's last line), so making it clickable killed
+        // both sideways scrolling and text selection. Keep the fade
+        // `pointer-events-none` and pin the only clickable target — a compact
+        // toggle — to the right edge, clear of the draggable scrollbar track.
+        <div className="pointer-events-none absolute inset-x-0 bottom-0 flex h-7 justify-end bg-linear-to-t from-(--ui-chat-surface-background) to-transparent">
+          <button
+            aria-expanded={expanded}
+            aria-label={expanded ? 'Collapse' : 'Expand'}
+            className="pointer-events-auto flex h-7 w-9 cursor-pointer items-end justify-center pb-1 text-muted-foreground/70 transition-colors hover:text-foreground"
+            onClick={() => setExpanded(v => !v)}
+            type="button"
+          >
+            <ChevronDown className={cn('size-3.5 transition-transform', expanded && 'rotate-180')} />
+          </button>
+        </div>
       )}
     </div>
   )