diff --git a/src/renderer/src/lib/orca-cloud/cloud-replay-depth-guard.test.ts b/src/renderer/src/lib/orca-cloud/cloud-replay-depth-guard.test.ts
index 6cb4d5d6192..e2eb8869382 100644
--- a/src/renderer/src/lib/orca-cloud/cloud-replay-depth-guard.test.ts
+++ b/src/renderer/src/lib/orca-cloud/cloud-replay-depth-guard.test.ts
@@ -69,6 +69,60 @@ describe('a shallower replay never shrinks a cloud pane (N-02)', () => {
     expect(after.filter((row) => row === '05000 line')).toHaveLength(1)
   })
 
+  // V3-02: asleep, woken, then the app restarted. Everything above the divider lived only in this
+  // pane; the host's (new) terminal has just what came after the wake.
+  it('keeps the output from before a sleep when the host replay after a restart has none of it', async () => {
+    const terminal = new Terminal({ cols: 80, rows: 10, scrollback: 6000, allowProposedApi: true })
+    const divider = '── Slept 10:46–10:52 AM · processes stopped ──'
+    const postWake = ['$ seq 5001 5003', '5001', '5002', '5003', 'N02W-POSTWAKE']
+    await write(terminal, `${[...lines(1, 300), divider, ...postWake].join('\r\n')}\r\n$ `)
+
+    const kept = await shallowReplay(terminal, `${postWake.join('\r\n')}\r\n$ `)
+
+    expect(kept).toBe(true)
+    const after = rows(terminal)
+    expect(after[0]).toBe('00001 line')
+    expect(after).toContain(divider)
+    expect(after.filter((row) => row === 'N02W-POSTWAKE')).toHaveLength(1)
+    expect(after.indexOf(divider)).toBeLessThan(after.indexOf('5001'))
+  })
+
+  it('keeps the output from before a sleep when the restarted host shows only a fresh prompt', async () => {
+    const terminal = new Terminal({ cols: 80, rows: 10, scrollback: 6000, allowProposedApi: true })
+    const divider = '── Slept 10:46–10:52 AM · processes stopped ──'
+    await write(terminal, `${[...lines(1, 40), divider].join('\r\n')}\r\n$ `)
+
+    const kept = await shallowReplay(terminal, '$ ')
+
+    expect(kept).toBe(true)
+    const after = rows(terminal)
+    expect(after[0]).toBe('00001 line')
+    expect(after.at(-2)).toBe(divider)
+    expect(after.at(-1)).toBe('$')
+  })
+
+  it('two sleeps before the restart: keeps everything up to the last divider, nothing doubled', async () => {
+    const terminal = new Terminal({ cols: 80, rows: 10, scrollback: 6000, allowProposedApi: true })
+    const first = '── Slept 9:00–9:30 AM · processes stopped ──'
+    const second = '── Slept 10:46–10:52 AM · processes stopped ──'
+    const postWake = ['$ echo after-second', 'after-second']
+    await write(
+      terminal,
+      `${[...lines(1, 50), first, ...lines(51, 80), second, ...postWake].join('\r\n')}\r\n$ `
+    )
+
+    const kept = await shallowReplay(terminal, `${postWake.join('\r\n')}\r\n$ `)
+
+    expect(kept).toBe(true)
+    const after = rows(terminal)
+    expect(after[0]).toBe('00001 line')
+    expect(after.filter((row) => row === first)).toHaveLength(1)
+    expect(after.filter((row) => row === second)).toHaveLength(1)
+    expect(after.filter((row) => row === '00080 line')).toHaveLength(1)
+    expect(after.filter((row) => row === 'after-second')).toHaveLength(1)
+    expect(after.indexOf(first)).toBeLessThan(after.indexOf(second))
+  })
+
   it('leaves the replay alone when it does not overlap what the pane held', async () => {
     const terminal = new Terminal({ cols: 80, rows: 10, scrollback: 6000, allowProposedApi: true })
     await write(terminal, `${lines(1, 3000).join('\r\n')}\r\n$ `)
@@ -83,6 +137,8 @@ describe('a shallower replay never shrinks a cloud pane (N-02)', () => {
     const before = ['a', 'b', 'c', 'd', 'e', 'f', 'g'].join('\r\n')
     expect(mergeDeeperHistory(before, ['tail-of-d', 'e', 'f', 'g'].join('\r\n'))).toBe(before)
     expect(mergeDeeperHistory(before, ['x', 'y', 'z', 'w'].join('\r\n'))).toBeNull()
-    expect(mergeDeeperHistory(['a', 'b'].join('\r\n'), ['a', 'b', 'c', 'd'].join('\r\n'))).toBeNull()
+    expect(
+      mergeDeeperHistory(['a', 'b'].join('\r\n'), ['a', 'b', 'c', 'd'].join('\r\n'))
+    ).toBeNull()
   })
 })
diff --git a/src/renderer/src/lib/orca-cloud/cloud-replay-depth-guard.ts b/src/renderer/src/lib/orca-cloud/cloud-replay-depth-guard.ts
index 0aa577ec91c..8ffa973a36d 100644
--- a/src/renderer/src/lib/orca-cloud/cloud-replay-depth-guard.ts
+++ b/src/renderer/src/lib/orca-cloud/cloud-replay-depth-guard.ts
@@ -14,6 +14,11 @@ import {
 const ANCHOR_LINES = 3
 const SGR = new RegExp(`${String.fromCharCode(27)}\\[[0-9;]*m`, 'g')
 
+/** The wake divider ("── Slept 2:02–2:31 PM ──" in any of its forms, or a bare rule). */
+function isWakeDivider(line: string | undefined): boolean {
+  return /^──( .+ ──|─*)$/.test(plain(line))
+}
+
 function plain(line: string | undefined): string {
   return (line ?? '').replace(SGR, '').trimEnd()
 }
@@ -27,6 +32,16 @@ function plain(line: string | undefined): string {
 export function mergeDeeperHistory(paneCopy: string, replayHistory: string): string | null {
   const before = paneCopy.split('\r\n')
   const after = replayHistory.split('\r\n')
+  // V3-02: output from before a sleep lives only in this pane (sleep stopped the host's processes).
+  // A host replay never carries the wake divider, so everything up to it is kept, then the host's.
+  let dividerAt = before.length - 1
+  while (dividerAt >= 0 && !isWakeDivider(before[dividerAt])) {
+    dividerAt--
+  }
+  if (dividerAt !== -1 && !after.some(isWakeDivider)) {
+    const hostLines = after.length === 1 && plain(after[0]) === '' ? [] : after
+    return [...before.slice(0, dividerAt + 1), ...hostLines].join('\r\n')
+  }
   if (after.length < ANCHOR_LINES + 1 || before.length <= after.length) {
     return null
   }
diff --git a/src/renderer/src/lib/orca-cloud/cloud-wake-scrollback.ts b/src/renderer/src/lib/orca-cloud/cloud-wake-scrollback.ts
index 3e2cf962f65..1a00292bad2 100644
--- a/src/renderer/src/lib/orca-cloud/cloud-wake-scrollback.ts
+++ b/src/renderer/src/lib/orca-cloud/cloud-wake-scrollback.ts
@@ -39,7 +39,6 @@ type PendingHistory = {
 type PreReplaySnapshot = { ptyId: string; at: number; aboveScreen: string; screen: string }
 const preReplay = new Map<string, PreReplaySnapshot>()
 /** The host's subscribe/recovery replay keeps this many rows of history. */
-const HOST_REPLAY_ROWS = 1000
 /** A sleep that follows a resubscribe within this long uses what the pane held before it. */
 const PRE_REPLAY_MAX_AGE_MS = 10 * 60_000
 
@@ -219,7 +218,8 @@ export function noteBeforeCloudReplay(
     return null
   }
   const normal = terminal.buffer?.normal
-  if (!normal || normal.length - terminal.rows <= HOST_REPLAY_ROWS) {
+  // Any scrollback: a pane woken from sleep can hold output the host never had (V3-02), at any depth.
+  if (!normal || normal.baseY <= 0) {
     return null
   }
   return (async () => {