diff --git a/.changeset/cute-lizards-knock.md b/.changeset/cute-lizards-knock.md
new file mode 100644
index 00000000000..a2a6c74349e
--- /dev/null
+++ b/.changeset/cute-lizards-knock.md
@@ -0,0 +1,5 @@
+---
+"@effect/cli": patch
+---
+
+handle executable paths with spaces in CLI arguments
diff --git a/packages/cli/src/internal/cliApp.ts b/packages/cli/src/internal/cliApp.ts
index 2de64c447a9..ec487af9db8 100644
--- a/packages/cli/src/internal/cliApp.ts
+++ b/packages/cli/src/internal/cliApp.ts
@@ -102,7 +102,8 @@ export const run = dual<
                             InternalCommand.getHelp(e.command, config)
                           ),
                           execute,
-                          config
+                          config,
+                          args
                         )
                       )
                       : Option.none()
@@ -115,7 +116,7 @@ export const run = dual<
             })
           }
           case "BuiltIn": {
-            return handleBuiltInOption(self, executable, filteredArgs, directive.option, execute, config).pipe(
+            return handleBuiltInOption(self, executable, filteredArgs, directive.option, execute, config, args).pipe(
               Effect.catchSome((e) =>
                 InternalValidationError.isValidationError(e)
                   ? Option.some(Effect.zipRight(printDocs(e.error), Effect.fail(e)))
@@ -151,7 +152,8 @@ const handleBuiltInOption = <R, E, A>(
   args: ReadonlyArray<string>,
   builtIn: BuiltInOptions.BuiltInOptions,
   execute: (a: A) => Effect.Effect<void, E, R>,
-  config: CliConfig.CliConfig
+  config: CliConfig.CliConfig,
+  originalArgs: ReadonlyArray<string>
 ): Effect.Effect<
   void,
   E | ValidationError.ValidationError,
@@ -159,14 +161,17 @@ const handleBuiltInOption = <R, E, A>(
 > => {
   switch (builtIn._tag) {
     case "SetLogLevel": {
-      const nextArgs = executable.split(/\s+/)
-      // Filter out the log level option before re-executing the command
+      // Use first 2 elements from originalArgs (runtime + script) to preserve paths with spaces
+      // Filter out --log-level from args before re-executing
+      const baseArgs = Arr.take(originalArgs, 2)
+      const filteredArgs: Array<string> = []
       for (let i = 0; i < args.length; i++) {
         if (isLogLevelArg(args[i]) || isLogLevelArg(args[i - 1])) {
           continue
         }
-        nextArgs.push(args[i])
+        filteredArgs.push(args[i])
       }
+      const nextArgs = Arr.appendAll(baseArgs, filteredArgs)
       return run(self, nextArgs, execute).pipe(
         Logger.withMinimumLogLevel(builtIn.level)
       )
@@ -269,10 +274,11 @@ const handleBuiltInOption = <R, E, A>(
             active: "yes",
             inactive: "no"
           }).pipe(Effect.flatMap((shouldRunCommand) => {
-            const finalArgs = pipe(
-              Arr.drop(args, 1),
-              Arr.prependAll(executable.split(/\s+/))
-            )
+            // Use first 2 elements from originalArgs (runtime + script) to preserve paths with spaces
+            // This mimics executable.split() behavior but without breaking Windows paths
+            const baseArgs = Arr.take(originalArgs, 2)
+            const wizardArgs = Arr.drop(args, 1)
+            const finalArgs = Arr.appendAll(baseArgs, wizardArgs)
             return shouldRunCommand
               ? Console.log().pipe(Effect.zipRight(run(self, finalArgs, execute)))
               : Effect.void
diff --git a/packages/cli/test/CliApp.test.ts b/packages/cli/test/CliApp.test.ts
index e0b2317ef65..de5dc108ee6 100644
--- a/packages/cli/test/CliApp.test.ts
+++ b/packages/cli/test/CliApp.test.ts
@@ -1,3 +1,4 @@
+import * as Args from "@effect/cli/Args"
 import type * as CliApp from "@effect/cli/CliApp"
 import * as CliConfig from "@effect/cli/CliConfig"
 import * as Command from "@effect/cli/Command"
@@ -113,5 +114,21 @@ describe("CliApp", () => {
         yield* cli(["node", "logging.js", "--log-level=debug"])
         expect(logLevel).toEqual(LogLevel.Debug)
       }).pipe(runEffect))
+
+    it("should handle paths with spaces when using --log-level", () =>
+      Effect.gen(function*() {
+        let executedValue: string | undefined = undefined
+        const cmd = Command.make("test", { value: Args.text() }, ({ value }) =>
+          Effect.sync(() => {
+            executedValue = value
+          }))
+        const cli = Command.run(cmd, {
+          name: "Test",
+          version: "1.0.0"
+        })
+        // Simulate Windows path with spaces (e.g., "C:\Program Files\nodejs\node.exe")
+        yield* cli(["C:\\Program Files\\node.exe", "C:\\My Scripts\\test.js", "--log-level", "info", "hello"])
+        expect(executedValue).toEqual("hello")
+      }).pipe(runEffect))
   })
 })