diff --git a/.changeset/background-process-display.md b/.changeset/background-process-display.md
new file mode 100644
index 0000000000..e43a4e9878
--- /dev/null
+++ b/.changeset/background-process-display.md
@@ -0,0 +1,5 @@
+---
+"kilo-code": patch
+---
+
+Respect the Terminal Command Blocks display setting for background process tool cards.
diff --git a/packages/kilo-vscode/tests/unit/tool-default-open.test.ts b/packages/kilo-vscode/tests/unit/tool-default-open.test.ts
new file mode 100644
index 0000000000..c36e66f81a
--- /dev/null
+++ b/packages/kilo-vscode/tests/unit/tool-default-open.test.ts
@@ -0,0 +1,24 @@
+import { describe, expect, it } from "bun:test"
+import type { Part, ToolPart } from "@kilocode/sdk/v2"
+import { toolDefaultOpen } from "../../webview-ui/src/components/chat/tool-default-open"
+
+function tool(name: string) {
+  return { type: "tool", tool: name } as ToolPart
+}
+
+describe("toolDefaultOpen", () => {
+  it.each(["bash", "background_process"])("uses the terminal preference for %s", (name) => {
+    expect(toolDefaultOpen(tool(name), false, true)).toBe(false)
+    expect(toolDefaultOpen(tool(name), true, false)).toBe(true)
+  })
+
+  it.each(["edit", "write", "apply_patch"])("uses the code edit preference for %s", (name) => {
+    expect(toolDefaultOpen(tool(name), true, false)).toBe(false)
+    expect(toolDefaultOpen(tool(name), false, true)).toBe(true)
+  })
+
+  it("leaves unrelated parts unchanged", () => {
+    expect(toolDefaultOpen(tool("read"), true, true)).toBeUndefined()
+    expect(toolDefaultOpen({ type: "text" } as Part, true, true)).toBeUndefined()
+  })
+})
diff --git a/packages/kilo-vscode/webview-ui/src/components/chat/AssistantMessage.tsx b/packages/kilo-vscode/webview-ui/src/components/chat/AssistantMessage.tsx
index 57f9c868c6..f2045ddf3d 100644
--- a/packages/kilo-vscode/webview-ui/src/components/chat/AssistantMessage.tsx
+++ b/packages/kilo-vscode/webview-ui/src/components/chat/AssistantMessage.tsx
@@ -33,14 +33,7 @@ import type { Part as TimelinePart } from "../../types/messages"
 import type { TimelineHighlight } from "../../utils/timeline/highlight"
 import { QuestionDock } from "./QuestionDock"
 import { SuggestBar } from "./SuggestBar"
-
-const EDIT_TOOLS = new Set(["edit", "write", "apply_patch"])
-
-function editOpen(part: SDKPart, open: boolean) {
-  if (part.type !== "tool") return undefined
-  const tool = (part as unknown as ToolPart).tool
-  return EDIT_TOOLS.has(tool) ? open : undefined
-}
+import { toolDefaultOpen } from "./tool-default-open"
 
 /** Extract plan path from a completed plan_exit tool part. */
 function planExitInfo(part: SDKPart): { plan: string } | undefined {
@@ -296,7 +289,7 @@ export const AssistantMessage: Component<AssistantMessageProps> = (props) => {
                                       part={part}
                                       message={props.message as SDKMessage}
                                       showAssistantCopyPartID={props.showAssistantCopyPartID}
-                                      defaultOpen={editOpen(part, edit())}
+                                      defaultOpen={toolDefaultOpen(part, open(), edit())}
                                       forceOpen={forceOpen()}
                                       forceOpenFile={forceOpen() ? props.forceOpenFile : undefined}
                                       reasoningAutoCollapse={display.reasoningAutoCollapse()}
diff --git a/packages/kilo-vscode/webview-ui/src/components/chat/tool-default-open.ts b/packages/kilo-vscode/webview-ui/src/components/chat/tool-default-open.ts
new file mode 100644
index 0000000000..8bf72cb031
--- /dev/null
+++ b/packages/kilo-vscode/webview-ui/src/components/chat/tool-default-open.ts
@@ -0,0 +1,12 @@
+import type { Part as SDKPart, ToolPart } from "@kilocode/sdk/v2"
+
+const EDIT_TOOLS = new Set(["edit", "write", "apply_patch"])
+const TERMINAL_TOOLS = new Set(["bash", "background_process"])
+
+export function toolDefaultOpen(part: SDKPart, terminal: boolean, edit: boolean) {
+  if (part.type !== "tool") return undefined
+  const tool = (part as unknown as ToolPart).tool
+  if (TERMINAL_TOOLS.has(tool)) return terminal
+  if (EDIT_TOOLS.has(tool)) return edit
+  return undefined
+}