diff --git a/src/test/json-lines-stream.test.ts b/src/test/json-lines-stream.test.ts
new file mode 100644
index 0000000..88d7785
--- /dev/null
+++ b/src/test/json-lines-stream.test.ts
@@ -0,0 +1,96 @@
+import * as assert from "node:assert";
+
+import { JsonLinesStream } from "../utils/json-lines-stream.js";
+
+const setup = () => {
+	const stream = new JsonLinesStream();
+
+	const callbackCalls: unknown[] = [];
+	stream.onJson((data: unknown) => {
+		callbackCalls.push(data);
+	});
+
+	return {
+		stream,
+		callbackCalls,
+	};
+};
+
+suite("JsonLinesStream Test Suite", () => {
+	test("should parse and emit complete JSON lines messages", () => {
+		const { stream, callbackCalls } = setup();
+
+		// Test with multiple JSON objects in a single write
+		const testData = Buffer.from('{"key1":"value1"}\n{"key2":"value2"}\n');
+
+		stream.write(testData);
+
+		assert.strictEqual(callbackCalls.length, 2);
+		assert.deepStrictEqual(callbackCalls[0], { key1: "value1" });
+		assert.deepStrictEqual(callbackCalls[1], { key2: "value2" });
+	});
+
+	test("should handle incomplete JSON lines messages across multiple writes", () => {
+		const { stream, callbackCalls } = setup();
+
+		// First write with partial message
+		const firstChunk = Buffer.from('{"key":"value');
+		stream.write(firstChunk);
+
+		// Shouldn't emit anything yet
+		assert.strictEqual(callbackCalls.length, 0);
+
+		// Complete the message in second write
+		const secondChunk = Buffer.from('1"}\n');
+		stream.write(secondChunk);
+
+		// Now it should emit the complete message
+		assert.strictEqual(callbackCalls.length, 1);
+		assert.deepStrictEqual(callbackCalls[0], { key: "value1" });
+	});
+
+	test("should handle multiple messages in chunks", () => {
+		const { stream, callbackCalls } = setup();
+
+		// Write first message and part of second
+		const firstChunk = Buffer.from('{"first":1}\n{"second":');
+		stream.write(firstChunk);
+
+		// First message should be emitted
+		assert.strictEqual(callbackCalls.length, 1);
+		assert.deepStrictEqual(callbackCalls[0], { first: 1 });
+
+		// Complete second message and add third
+		const secondChunk = Buffer.from('2}\n{"third":3}\n');
+		stream.write(secondChunk);
+
+		// Should have all three messages now
+		assert.strictEqual(callbackCalls.length, 3);
+		assert.deepStrictEqual(callbackCalls[1], { second: 2 });
+		assert.deepStrictEqual(callbackCalls[2], { third: 3 });
+	});
+
+	test("should ignore invalid JSON lines", () => {
+		const { stream, callbackCalls } = setup();
+
+		const testData = Buffer.from('not json\n{"valid":true}\n{invalid}\n');
+
+		stream.write(testData);
+
+		// Should only emit the valid JSON object
+		assert.strictEqual(callbackCalls.length, 1);
+		assert.deepStrictEqual(callbackCalls[0], { valid: true });
+	});
+
+	test("should handle empty lines", () => {
+		const { stream, callbackCalls } = setup();
+
+		const testData = Buffer.from('\n\n{"key":"value"}\n\n');
+
+		stream.write(testData);
+
+		// Should only emit the valid JSON object
+		assert.strictEqual(callbackCalls.length, 1);
+		assert.deepStrictEqual(callbackCalls[0], { key: "value" });
+	});
+});
diff --git a/src/utils/container-status.ts b/src/utils/container-status.ts
index 782323a..4b1a09e 100644
--- a/src/utils/container-status.ts
+++ b/src/utils/container-status.ts
@@ -4,6 +4,7 @@ import type { Disposable, LogOutputChannel } from "vscode";
 import * as z from "zod/v4-mini";
 
 import { createEmitter } from "./emitter.ts";
+import { JsonLinesStream } from "./json-lines-stream.ts";
 
 export type ContainerStatus = "running" | "stopping" | "stopped";
 
@@ -63,14 +64,6 @@ const DockerEventsSchema = z.object({
 	}),
 });
 
-function safeJsonParse(text: string): unknown {
-	try {
-		return JSON.parse(text);
-	} catch {
-		return undefined;
-	}
-}
-
 function listenToContainerStatus(
 	containerName: string,
 	outputChannel: LogOutputChannel,
@@ -130,32 +123,33 @@ function listenToContainerStatus(
 				throw new Error("Failed to get stdout from docker events process");
 			}
 
-			dockerEvents.stdout.on("data", (data: Buffer) => {
-				const lines = data.toString().split("\n").filter(Boolean);
-				for (const line of lines) {
-					const json = safeJsonParse(line);
-					const parsed = DockerEventsSchema.safeParse(json);
-					if (!parsed.success) {
-						continue;
-					}
+			const jsonlStream = new JsonLinesStream();
+			jsonlStream.onJson((json) => {
+				const parsed = DockerEventsSchema.safeParse(json);
+				if (!parsed.success) {
+					return;
+				}
 
-					if (parsed.data.Actor.Attributes.name !== containerName) {
-						continue;
-					}
+				if (parsed.data.Actor.Attributes.name !== containerName) {
+					return;
+				}
 
-					switch (parsed.data.Action) {
-						case "start":
-							onStatusChange("running");
-							break;
-						case "kill":
-							onStatusChange("stopping");
-							break;
-						case "die":
-							onStatusChange("stopped");
-							break;
-					}
+				outputChannel.debug(`[container.status]: ${parsed.data.Action}`);
+
+				switch (parsed.data.Action) {
+					case "start":
+						onStatusChange("running");
+						break;
+					case "kill":
+						onStatusChange("stopping");
+						break;
+					case "die":
+						onStatusChange("stopped");
+						break;
 				}
 			});
+
+			dockerEvents.stdout.pipe(jsonlStream);
 		} catch (error) {
 			// If we can't spawn the process, try again after a delay
 			scheduleRestart();
diff --git a/src/utils/json-lines-stream.ts b/src/utils/json-lines-stream.ts
new file mode 100644
index 0000000..f337421
--- /dev/null
+++ b/src/utils/json-lines-stream.ts
@@ -0,0 +1,52 @@
+import { Writable } from "node:stream";
+
+/**
+ * Safely parses a JSON string, returning undefined if parsing fails.
+ * @param str - The JSON string to parse.
+ * @returns The parsed object or undefined if invalid.
+ */
+export function safeJsonParse(str: string): unknown {
+	try {
+		return JSON.parse(str);
+	} catch {
+		return undefined;
+	}
+}
+
+/**
+ * Writable stream that buffers data until a newline,
+ * parses each line as JSON, and emits the parsed object.
+ */
+export class JsonLinesStream extends Writable {
+	constructor() {
+		let buffer = "";
+		super({
+			write: (chunk, _encoding, callback) => {
+				buffer += String(chunk);
+
+				let newlineIndex = buffer.indexOf("\n");
+				while (newlineIndex !== -1) {
+					const line = buffer.substring(0, newlineIndex).trim();
+					buffer = buffer.substring(newlineIndex + 1);
+
+					const json = safeJsonParse(line);
+					if (json !== undefined) {
+						this.emit("json", json);
+					}
+
+					newlineIndex = buffer.indexOf("\n");
+				}
+
+				callback();
+			},
+		});
+	}
+
+	/**
+	 * Registers a listener for parsed JSON objects.
+	 * @param listener - Function called with each parsed object.
+	 */
+	onJson(callback: (json: unknown) => void) {
+		this.on("json", callback);
+	}
+}