diff --git a/src/renderer/src/components/terminal-pane/TerminalPaneOverlayLayer.react185.test.tsx b/src/renderer/src/components/terminal-pane/TerminalPaneOverlayLayer.react185.test.tsx
new file mode 100644
index 000000000..faa8a2ba0
--- /dev/null
+++ b/src/renderer/src/components/terminal-pane/TerminalPaneOverlayLayer.react185.test.tsx
@@ -0,0 +1,166 @@
+/** @vitest-environment happy-dom */
+import { act } from 'react'
+import { createRoot, type Root } from 'react-dom/client'
+import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest'
+
+;(globalThis as { IS_REACT_ACT_ENVIRONMENT?: boolean }).IS_REACT_ACT_ENVIRONMENT = true
+
+let terminalPaneRenderCount = 0
+vi.mock('./TerminalPane', () => ({
+  default: () => {
+    terminalPaneRenderCount += 1
+    return null
+  }
+}))
+
+vi.mock('../../store', () => ({
+  useAppStore: Object.assign(() => undefined, {
+    getState: () => ({ pendingStartupByTabId: {} })
+  })
+}))
+
+import { TerminalOverlaySlot } from './TerminalPaneOverlayLayer'
+
+const GROUP_ID = 'group-react185'
+const TAB_ID = 'tab-react185'
+
+function createRect({
+  top = 0,
+  left = 0,
+  width = 800,
+  height = 600
+}: Partial<Pick<DOMRect, 'top' | 'left' | 'width' | 'height'>> = {}): DOMRect {
+  return {
+    top,
+    left,
+    right: left + width,
+    bottom: top + height,
+    width,
+    height,
+    x: left,
+    y: top,
+    toJSON: () => ({})
+  }
+}
+
+const PARENT_RECT = createRect()
+
+let capturedResizeCallback: (() => void) | null = null
+let container: HTMLDivElement
+let bodyEl: HTMLDivElement
+let bodyRect: DOMRect
+let root: Root
+
+class CapturingResizeObserver {
+  constructor(cb: () => void) {
+    capturedResizeCallback = cb
+  }
+  observe(): void {}
+  unobserve(): void {}
+  disconnect(): void {}
+}
+
+function renderSlot(): void {
+  root = createRoot(container)
+  act(() => {
+    root.render(
+      <TerminalOverlaySlot
+        terminalTabId={TAB_ID}
+        terminalGeneration={0}
+        worktreeId="wt-1"
+        worktreePath="wt-1"
+        startupCwd={undefined}
+        groupId={GROUP_ID}
+        isWorktreeActive
+        isVisible
+        isActive
+        activityTerminalPortal={null}
+        onFocusOwningGroup={vi.fn()}
+        consumeSuppressedPtyExit={() => false}
+        leaveWorktreeIfEmpty={vi.fn()}
+      />
+    )
+  })
+}
+
+beforeEach(() => {
+  terminalPaneRenderCount = 0
+  capturedResizeCallback = null
+  ;(globalThis as { __ORCA_WEB_CLIENT__?: boolean }).__ORCA_WEB_CLIENT__ = true
+  vi.stubGlobal('ResizeObserver', CapturingResizeObserver)
+
+  container = document.createElement('div')
+  container.getBoundingClientRect = () => PARENT_RECT
+  document.body.appendChild(container)
+
+  bodyEl = document.createElement('div')
+  bodyEl.setAttribute('data-tab-group-body-id', GROUP_ID)
+  bodyRect = createRect({ top: 32, height: 568 })
+  bodyEl.getBoundingClientRect = () => bodyRect
+  document.body.appendChild(bodyEl)
+})
+
+afterEach(() => {
+  act(() => {
+    root?.unmount()
+  })
+  container?.remove()
+  bodyEl?.remove()
+  vi.unstubAllGlobals()
+  delete (globalThis as { __ORCA_WEB_CLIENT__?: boolean }).__ORCA_WEB_CLIENT__
+})
+
+describe('TerminalPaneOverlayLayer fallback measure<->fit loop (React #185)', () => {
+  it('does not re-render on ResizeObserver ticks with an unchanged rect', () => {
+    renderSlot()
+    expect(capturedResizeCallback).toBeTypeOf('function')
+
+    const rendersAfterMount = terminalPaneRenderCount
+    for (let i = 0; i < 50; i += 1) {
+      act(() => {
+        capturedResizeCallback?.()
+      })
+    }
+
+    expect(terminalPaneRenderCount - rendersAfterMount).toBe(0)
+  })
+
+  it('settles sub-pixel jitter across an integer boundary without losing precision', () => {
+    bodyRect = createRect({ top: 32.1, left: 0.1, width: 799.1, height: 567.1 })
+    renderSlot()
+    const overlay = container.querySelector<HTMLElement>('[data-terminal-overlay-tab-id]')
+    expect(overlay?.style.top).toBe('32.1px')
+    expect(overlay?.style.width).toBe('799.1px')
+
+    const rendersAfterMount = terminalPaneRenderCount
+    for (let i = 0; i < 50; i += 1) {
+      bodyRect = createRect({ top: 32.9, left: 0.9, width: 799.9, height: 567.9 })
+      act(() => {
+        capturedResizeCallback?.()
+      })
+      bodyRect = createRect({ top: 32.1, left: 0.1, width: 799.1, height: 567.1 })
+      act(() => {
+        capturedResizeCallback?.()
+      })
+    }
+
+    expect(terminalPaneRenderCount - rendersAfterMount).toBe(0)
+    expect(overlay?.style.top).toBe('32.1px')
+    expect(overlay?.style.width).toBe('799.1px')
+  })
+
+  it('commits a genuine geometry change', () => {
+    renderSlot()
+    const overlay = container.querySelector<HTMLElement>('[data-terminal-overlay-tab-id]')
+    const rendersAfterMount = terminalPaneRenderCount
+
+    bodyRect = createRect({ top: 34, width: 760, height: 566 })
+    act(() => {
+      capturedResizeCallback?.()
+    })
+
+    expect(terminalPaneRenderCount - rendersAfterMount).toBe(1)
+    expect(overlay?.style.top).toBe('34px')
+    expect(overlay?.style.width).toBe('760px')
+  })
+})
diff --git a/src/renderer/src/components/terminal-pane/TerminalPaneOverlayLayer.tsx b/src/renderer/src/components/terminal-pane/TerminalPaneOverlayLayer.tsx
index 0bf780b80..30b0855cf 100644
--- a/src/renderer/src/components/terminal-pane/TerminalPaneOverlayLayer.tsx
+++ b/src/renderer/src/components/terminal-pane/TerminalPaneOverlayLayer.tsx
@@ -33,6 +33,7 @@ const HAS_CSS_ANCHOR_POSITIONING =
   CSS.supports('width', 'anchor-size(--orca-terminal-overlay-probe width)')
 const MIN_OVERLAY_FIT_WIDTH_PX = 48
 const MIN_OVERLAY_FIT_HEIGHT_PX = 24
+const FALLBACK_RECT_MIN_CHANGE_PX = 1
 
 function shouldUseCssAnchorPositioning(): boolean {
   return (
@@ -64,7 +65,7 @@ type TerminalOverlaySlotProps = {
   leaveWorktreeIfEmpty: () => void
 }
 
-const TerminalOverlaySlot = memo(function TerminalOverlaySlot({
+export const TerminalOverlaySlot = memo(function TerminalOverlaySlot({
   terminalTabId,
   terminalGeneration,
   worktreeId,
@@ -116,12 +117,22 @@ const TerminalOverlaySlot = memo(function TerminalOverlaySlot({
       }
       const parentRect = parent.getBoundingClientRect()
       const bodyRect = body.getBoundingClientRect()
-      setMeasuredFallbackRect({
+      const next: MeasuredFallbackRect = {
         top: bodyRect.top - parentRect.top,
         left: bodyRect.left - parentRect.left,
         width: bodyRect.width,
         height: bodyRect.height
-      })
+      }
+      // Why: ResizeObserver and xterm fit can otherwise amplify sub-pixel jitter forever.
+      setMeasuredFallbackRect((prev) =>
+        prev &&
+        Math.abs(prev.top - next.top) < FALLBACK_RECT_MIN_CHANGE_PX &&
+        Math.abs(prev.left - next.left) < FALLBACK_RECT_MIN_CHANGE_PX &&
+        Math.abs(prev.width - next.width) < FALLBACK_RECT_MIN_CHANGE_PX &&
+        Math.abs(prev.height - next.height) < FALLBACK_RECT_MIN_CHANGE_PX
+          ? prev
+          : next
+      )
     }
 
     updateRect()