diff --git a/packages/kilo-vscode/tests/unit/agent-manager-terminal-state.test.ts b/packages/kilo-vscode/tests/unit/agent-manager-terminal-state.test.ts
index 737a90e54c..ac3a8613b3 100644
--- a/packages/kilo-vscode/tests/unit/agent-manager-terminal-state.test.ts
+++ b/packages/kilo-vscode/tests/unit/agent-manager-terminal-state.test.ts
@@ -197,6 +197,45 @@ describe("Agent Manager terminal state", () => {
     })
   })
 
+  it("hydrates script terminals into independent project contexts", () => {
+    createRoot((dispose) => {
+      const item = scene()
+      item.dispatch({
+        type: "agentManager.scriptTerminals",
+        terminals: [
+          {
+            terminalId: "script:setup-a",
+            projectId: "prj-a",
+            worktreeId: "wt-1",
+            kind: "setup",
+            title: "Setup",
+            wsUrl: "ws://script:setup-a",
+            state: "running",
+            font,
+          },
+          {
+            terminalId: "script:setup-b",
+            projectId: "prj-b",
+            worktreeId: "wt-1",
+            kind: "setup",
+            title: "Setup",
+            wsUrl: "ws://script:setup-b",
+            state: "running",
+            font,
+          },
+        ],
+      } satisfies ExtensionMessage)
+
+      expect(item.state.sidesForContext("prj-a:wt-1").map((term) => term.id)).toEqual(["script:setup-a"])
+      expect(item.state.sidesForContext("prj-b:wt-1").map((term) => term.id)).toEqual(["script:setup-b"])
+      expect(item.events.running).toEqual([
+        { contextKey: "prj-a:wt-1", terminalId: "script:setup-a" },
+        { contextKey: "prj-b:wt-1", terminalId: "script:setup-b" },
+      ])
+      dispose()
+    })
+  })
+
   it("activates a Setup terminal that hydrates before its worktree is selected", () => {
     createRoot((dispose) => {
       const item = scene(LOCAL)
diff --git a/packages/kilo-vscode/tests/unit/script-terminal-manager.test.ts b/packages/kilo-vscode/tests/unit/script-terminal-manager.test.ts
index 8feae7e2fa..c9f97d8b6a 100644
--- a/packages/kilo-vscode/tests/unit/script-terminal-manager.test.ts
+++ b/packages/kilo-vscode/tests/unit/script-terminal-manager.test.ts
@@ -156,6 +156,32 @@ describe("ScriptTerminalManager", () => {
     expect(ctx.snapshots.at(-1)?.[0]?.worktreeId).toBeNull()
   })
 
+  it("keeps identical worktree script terminals independent across projects", async () => {
+    let id = 0
+    const ctx = harness({
+      create: async () => ({
+        data: { location: { directory: config.cwd }, data: { ...info(), id: `pty-${++id}` } },
+      }),
+      get: async () => ({
+        data: { location: { directory: config.cwd }, data: { ...info(), id: `pty-${id}` } },
+      }),
+    })
+
+    await ctx.manager.start("setup", { ...config, projectId: "prj-a" }, () => undefined)
+    await ctx.manager.start("setup", { ...config, projectId: "prj-b" }, () => undefined)
+
+    expect(ctx.snapshots.at(-1)).toEqual([
+      expect.objectContaining({ projectId: "prj-a", worktreeId: "wt-1", kind: "setup" }),
+      expect.objectContaining({ projectId: "prj-b", worktreeId: "wt-1", kind: "setup" }),
+    ])
+    expect(ctx.manager.active("setup", "wt-1", "prj-a")).toBe(true)
+    expect(ctx.manager.active("setup", "wt-1", "prj-b")).toBe(true)
+
+    await ctx.manager.clear("setup", "wt-1", "prj-a")
+    expect(ctx.manager.active("setup", "wt-1", "prj-a")).toBe(false)
+    expect(ctx.manager.active("setup", "wt-1", "prj-b")).toBe(true)
+  })
+
   it("builds canonical authenticated replay URLs", () => {
     const value = buildScriptTerminalWsUrl(
       { baseUrl: "http://127.0.0.1:4096", password: "secret" },
diff --git a/packages/kilo-vscode/tests/unit/setup-script-task.test.ts b/packages/kilo-vscode/tests/unit/setup-script-task.test.ts
index 1b961d23d9..7714cad6c2 100644
--- a/packages/kilo-vscode/tests/unit/setup-script-task.test.ts
+++ b/packages/kilo-vscode/tests/unit/setup-script-task.test.ts
@@ -312,7 +312,10 @@ describe("runWorktreeSetupScript", () => {
     return dir
   }
 
-  function flow(script: boolean, opts?: { destination?: "vscode" | "agentManager"; code?: number }) {
+  function flow(
+    script: boolean,
+    opts?: { destination?: "vscode" | "agentManager"; code?: number; projectId?: string },
+  ) {
     const posted: AgentManagerOutMessage[] = []
     const runs: string[] = []
     const ctx = harness()
@@ -323,6 +326,7 @@ describe("runWorktreeSetupScript", () => {
     const input = {
       service: new SetupScriptService(root(script)),
       destination: opts?.destination ?? ("vscode" as const),
+      projectId: opts?.projectId,
       worktreeId: "wt-1",
       trusted: () => true,
       manager: ctx.manager,
@@ -349,6 +353,17 @@ describe("runWorktreeSetupScript", () => {
     expect(scene.runs).toEqual(["/repo/worktree"])
   })
 
+  it("stamps progress and embedded terminals with the owning project", async () => {
+    const scene = flow(true, { destination: "agentManager", projectId: "prj-a" })
+    const result = runWorktreeSetupScript(scene.input, { worktreePath: "/repo/worktree", repoPath: "/repo" })
+    await new Promise((resolve) => setTimeout(resolve, 0))
+
+    expect(scene.posted[0]).toMatchObject({ projectId: "prj-a", worktreeId: "wt-1" })
+    expect(scene.ctx.starts[0]?.config).toMatchObject({ projectId: "prj-a", worktreeId: "wt-1" })
+    scene.ctx.starts[0]?.done({ exitCode: 0 })
+    await result
+  })
+
   it("stays silent when no setup script is configured", async () => {
     const scene = flow(false)
     await runWorktreeSetupScript(scene.input, { worktreePath: "/repo/worktree", repoPath: "/repo" })
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx b/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
index f031eead53..c0765acb2e 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
+++ b/packages/kilo-vscode/webview-ui/agent-manager/AgentManagerApp.tsx
@@ -2358,10 +2358,10 @@ const AgentManagerContent: Component = () => {
           terminalDestination={sideCtl.destination}
           terminalDestinationActive={() => sidePanel() === "terminal"}
           terminalKeybind={() => kb().showTerminal ?? ""}
-      onTerminalDestinationOpen={() => {
-        cancelAmbientSetup()
-        sideCtl.openPreferred("tab_toolbar")
-      }}
+          onTerminalDestinationOpen={() => {
+            cancelAmbientSetup()
+            sideCtl.openPreferred("tab_toolbar")
+          }}
           onTerminalDestinationChoose={sideCtl.choose}
           track={metrics.click}
         />