diff --git a/src/vs/platform/terminal/common/capabilities/commandDetection/promptInputModel.ts b/src/vs/platform/terminal/common/capabilities/commandDetection/promptInputModel.ts
index 328f5f941ef82..28bb1cd86c230 100644
--- a/src/vs/platform/terminal/common/capabilities/commandDetection/promptInputModel.ts
+++ b/src/vs/platform/terminal/common/capabilities/commandDetection/promptInputModel.ts
@@ -42,6 +42,12 @@ export interface IPromptInputModel extends IPromptInputModelState {
 	getCombinedString(emptyStringWhenEmpty?: boolean): string;
 
 	setShellType(shellType?: TerminalShellType): void;
+
+	/**
+	 * Clears the prompt input value. This should be called when the command has finished
+	 * and the value is no longer relevant as editable prompt input.
+	 */
+	clearValue(): void;
 }
 
 export interface IPromptInputModelState {
@@ -239,8 +245,10 @@ export class PromptInputModel extends Disposable implements IPromptInputModel {
 
 	private _handleCommandExecuted() {
 		if (this._state === PromptInputState.Execute) {
+			this._logService.trace('PromptInputModel#_handleCommandExecuted: already in Execute state');
 			return;
 		}
+		this._logService.trace('PromptInputModel#_handleCommandExecuted: Inside _handleCommandExecuted but not PromptInputState.Execute yet');
 
 		this._cursorIndex = -1;
 
@@ -261,6 +269,14 @@ export class PromptInputModel extends Disposable implements IPromptInputModel {
 		this._onDidChangeInput.fire(event);
 	}
 
+	/**
+	 * Clears the prompt input value. This should be called when the command has finished
+	 * and the value is no longer relevant as editable prompt input.
+	 */
+	clearValue(): void {
+		this._value = '';
+	}
+
 	@throttle(0)
 	private _sync() {
 		try {
diff --git a/src/vs/workbench/api/browser/mainThreadTerminalShellIntegration.ts b/src/vs/workbench/api/browser/mainThreadTerminalShellIntegration.ts
index 4a46691ae5682..c4c0fd07ed794 100644
--- a/src/vs/workbench/api/browser/mainThreadTerminalShellIntegration.ts
+++ b/src/vs/workbench/api/browser/mainThreadTerminalShellIntegration.ts
@@ -12,6 +12,7 @@ import { IWorkbenchEnvironmentService } from '../../services/environment/common/
 import { extHostNamedCustomer, type IExtHostContext } from '../../services/extensions/common/extHostCustomers.js';
 import { TerminalShellExecutionCommandLineConfidence } from '../common/extHostTypes.js';
 import { IExtensionService } from '../../services/extensions/common/extensions.js';
+import { ITerminalLogService } from '../../../platform/terminal/common/terminal.js';
 
 @extHostNamedCustomer(MainContext.MainThreadTerminalShellIntegration)
 export class MainThreadTerminalShellIntegration extends Disposable implements MainThreadTerminalShellIntegrationShape {
@@ -21,7 +22,8 @@ export class MainThreadTerminalShellIntegration extends Disposable implements Ma
 		extHostContext: IExtHostContext,
 		@ITerminalService private readonly _terminalService: ITerminalService,
 		@IWorkbenchEnvironmentService workbenchEnvironmentService: IWorkbenchEnvironmentService,
-		@IExtensionService private readonly _extensionService: IExtensionService
+		@IExtensionService private readonly _extensionService: IExtensionService,
+		@ITerminalLogService private readonly _logService: ITerminalLogService
 	) {
 		super();
 
@@ -98,10 +100,15 @@ export class MainThreadTerminalShellIntegration extends Disposable implements Ma
 			currentCommand = undefined;
 			const instanceId = e.instance.instanceId;
 			instanceDataListeners.get(instanceId)?.dispose();
+			// Clear the prompt input value before sending the event to the extension host
+			// so that subsequent executeCommand calls don't see stale input
+			// e.instance.capabilities.get(TerminalCapability.CommandDetection)?.promptInputModel.clearValue();
+			this._logService.trace(`PromptInputModel#_onDidEndTerminalShellExecution# state of promptInputModel is	: ${e.instance.capabilities.get(TerminalCapability.CommandDetection)?.promptInputModel.state}`);
 			// Shell integration C (executed) and D (command finished) sequences should always be in
 			// their own events, so send this immediately. This means that the D sequence will not
 			// be included as it's currently being parsed when the command finished event fires.
 			this._proxy.$shellExecutionEnd(instanceId, e.data.command, convertToExtHostCommandLineConfidence(e.data), e.data.isTrusted, e.data.exitCode);
+			this._logService.trace(`PromptInputModel#_onDidEndTerminalShellExecution# state of promptInputModel after shellExecutionEnd is	: ${e.instance.capabilities.get(TerminalCapability.CommandDetection)?.promptInputModel.state}`);
 		}));
 
 		// Clean up after dispose
diff --git a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
index ce934e637ac01..454c45124696d 100644
--- a/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
+++ b/src/vs/workbench/contrib/terminal/browser/terminalInstance.ts
@@ -1008,6 +1008,10 @@ export class TerminalInstance extends Disposable implements ITerminalInstance {
 		// Determine whether to send ETX (ctrl+c) before running the command. Only do this when the
 		// command will be executed immediately or when command detection shows the prompt contains text.
 		if (shouldExecute && (!commandDetection || commandDetection.promptInputModel.value.length > 0)) {
+			this._logService.trace(`PromptInputModel#runCommand: Sending ETX (ctrl+c) before running command`);
+			this._logService.trace(`PromptInputModel#runCommand: state of promptinputmodel before sending ETX: ${commandDetection ? commandDetection.promptInputModel.state : 'no command detection'}`);
+			this._logService.trace(`PromptInputModel#runCommand: value of promptinputmodel before sending ETX: ${commandDetection ? commandDetection.promptInputModel.value : 'no command detection'}`);
+
 			await this.sendText('\x03', false);
 			// Wait a little before running the command to avoid the sequences being echoed while the ^C
 			// is being evaluated