diff --git a/packages/cli/src/repl/client.ts b/packages/cli/src/repl/client.ts
index 90277c5..3b1b82a 100644
--- a/packages/cli/src/repl/client.ts
+++ b/packages/cli/src/repl/client.ts
@@ -66,6 +66,23 @@ export class BoxREPLClient {
   private _suggestion: string | null = "ls";
   private _cwdEntries: string[] = [];
 
+  /** The currently active streaming run (shell or agent), if any. */
+  activeRun: { cancel(): Promise<void> } | null = null;
+  private _runCancelled = false;
+
+  /**
+   * Cancel the active run. Called when the user presses Ctrl+C during execution.
+   * Sets `_runCancelled` flag so the generator can distinguish cancellation from errors.
+   */
+  async cancelActiveRun(): Promise<void> {
+    const run = this.activeRun;
+    if (run) {
+      this._runCancelled = true;
+      this.activeRun = null;
+      await run.cancel();
+    }
+  }
+
   constructor(box: Box, options?: BoxREPLClientOptions) {
     this.box = box;
     this._onModelConfiguration = options?.onModelConfiguration;
@@ -143,10 +160,16 @@ export class BoxREPLClient {
   /** Execute a shell command in the box, streaming output in real time. */
   private async *execShellCommand(command: string): AsyncGenerator<BoxREPLEvent> {
     const run = await this.box.exec.stream(command);
-    for await (const chunk of run) {
-      if (chunk.type === "output") {
-        yield { type: "stream", text: chunk.data };
+    this.activeRun = run;
+    this._runCancelled = false;
+    try {
+      for await (const chunk of run) {
+        if (chunk.type === "output") {
+          yield { type: "stream", text: chunk.data };
+        }
       }
+    } finally {
+      this.activeRun = null;
     }
   }
 
@@ -263,19 +286,34 @@ export class BoxREPLClient {
             };
           }
         } catch (err) {
-          yield { type: "error", message: `Error: ${err instanceof Error ? err.message : err}` };
+          if (this._runCancelled) {
+            yield { type: "stream", text: "\n" };
+            yield { type: "log", message: "Cancelled." };
+          } else {
+            yield { type: "error", message: `Error: ${err instanceof Error ? err.message : err}` };
+          }
         }
       } else {
         // Agent mode
         this._suggestion = getNextSuggestion({ kind: "agent", initial: false });
         yield { type: "command:start", command: "agent", args: trimmed };
         const start = Date.now();
+        this._runCancelled = false;
         try {
-          yield* handleRun(this.box, trimmed);
+          yield* handleRun(this.box, trimmed, (run) => {
+            this.activeRun = run;
+          });
           const durationMs = Date.now() - start;
           yield { type: "command:complete", command: "agent", durationMs };
         } catch (err) {
-          yield { type: "error", message: `Error: ${err instanceof Error ? err.message : err}` };
+          if (this._runCancelled) {
+            yield { type: "stream", text: "\n" };
+            yield { type: "log", message: "Cancelled." };
+          } else {
+            yield { type: "error", message: `Error: ${err instanceof Error ? err.message : err}` };
+          }
+        } finally {
+          this.activeRun = null;
         }
       }
     }
diff --git a/packages/cli/src/repl/commands/run.ts b/packages/cli/src/repl/commands/run.ts
index 9e52086..248d639 100644
--- a/packages/cli/src/repl/commands/run.ts
+++ b/packages/cli/src/repl/commands/run.ts
@@ -67,13 +67,18 @@ export function parseTodoItems(input: Record<string, unknown>): TodoItem[] {
 /**
  * Run the agent with a prompt, streaming output as events.
  */
-export async function* handleRun(box: Box, prompt: string): AsyncGenerator<BoxREPLEvent> {
+export async function* handleRun(
+  box: Box,
+  prompt: string,
+  onRunCreated?: (run: { cancel(): Promise<void> }) => void,
+): AsyncGenerator<BoxREPLEvent> {
   if (!prompt) {
     yield { type: "log", message: "Usage: run <prompt>" };
     return;
   }
 
   const run = await box.agent.stream({ prompt });
+  onRunCreated?.(run);
 
   for await (const chunk of run) {
     if (chunk.type === "text-delta") {
diff --git a/packages/cli/src/repl/terminal.ts b/packages/cli/src/repl/terminal.ts
index 2081e69..584cfa9 100644
--- a/packages/cli/src/repl/terminal.ts
+++ b/packages/cli/src/repl/terminal.ts
@@ -172,6 +172,21 @@ export async function startRepl(box: Box, options?: BoxREPLClientOptions): Promi
   let isMetaReturn = false;
 
   if (stdin.isTTY) {
+    // Intercept Ctrl+C: cancel the active run instead of exiting the REPL.
+    // Wraps readline's _ttyWrite so the \x03 character never reaches readline
+    // when there is an active run, preventing it from closing the interface.
+    const rlAnyTty = rl as unknown as {
+      _ttyWrite: (s: string, key: Record<string, unknown>) => void;
+    };
+    const origTtyWrite = rlAnyTty._ttyWrite.bind(rl);
+    rlAnyTty._ttyWrite = (s: string, key: Record<string, unknown>) => {
+      if (key?.ctrl && key?.name === "c" && client.activeRun) {
+        client.cancelActiveRun();
+        return;
+      }
+      return origTtyWrite(s, key);
+    };
+
     // Must run before readline's handler so the cursor is still on the input line
     stdin.prependListener(
       "keypress",
diff --git a/packages/sdk/src/__tests__/integration/lifecycle.integration.test.ts b/packages/sdk/src/__tests__/integration/lifecycle.integration.test.ts
index b3b8b9b..8c0c917 100644
--- a/packages/sdk/src/__tests__/integration/lifecycle.integration.test.ts
+++ b/packages/sdk/src/__tests__/integration/lifecycle.integration.test.ts
@@ -96,6 +96,7 @@ describe.skipIf(!UPSTASH_BOX_API_KEY)("lifecycle", () => {
     // Verify the run shows up in listRuns
     const runs = await box.listRuns();
     expect(runs.length).toBeGreaterThanOrEqual(1);
+    expect(runs.find((r) => r.id === run.id)?.status).toBe("cancelled");
   }, 120000);
 
   it("box.logs: returns structured logs", async () => {