diff --git a/src/utils/logger.js b/src/utils/logger.js
index 6b861c5..be285d4 100644
--- a/src/utils/logger.js
+++ b/src/utils/logger.js
@@ -1,6 +1,29 @@
 import { fs } from 'zx';
 import { path } from 'zx';
 
+/**
+ * Strips ANSI escape codes from a string
+ * @param {string} str - String with ANSI codes
+ * @returns {string} Clean string without ANSI codes
+ */
+function stripAnsi(str) {
+  if (typeof str !== 'string') {
+    return str;
+  }
+
+  // Remove ANSI escape sequences
+  // This regex matches all common ANSI codes including:
+  // - Colors (e.g., \x1b[32m)
+  // - Cursor movement (e.g., \x1b[1;1H)
+  // - Screen clearing (e.g., \x1b[0J)
+  // - 256-color codes (e.g., \x1b[38;2;244;197;66m)
+  return str.replace(
+    // eslint-disable-next-line no-control-regex
+    /\x1b\[[0-9;]*[a-zA-Z]|\x1b\][0-9];.*?\x07|\x1b\[[\d;]*m/g,
+    ''
+  );
+}
+
 /**
  * Sets up logging to capture all stdout and stderr to a file
  * @param {string} logFilePath - Path to the log file
@@ -18,23 +41,63 @@ export async function setupLogging(logFilePath) {
   // Create write stream for the log file
   const logStream = fs.createWriteStream(absoluteLogPath, { flags: 'a' });
 
+  // Buffer for lines that might be overwritten (carriage return without newline)
+  let stdoutBuffer = '';
+  let stderrBuffer = '';
+
   // Store original stdout/stderr write functions
   const originalStdoutWrite = process.stdout.write.bind(process.stdout);
   const originalStderrWrite = process.stderr.write.bind(process.stderr);
 
   // Override stdout
   process.stdout.write = function(chunk, encoding, callback) {
-    // Write to both original stdout and log file
+    // Write colorized output to terminal
     originalStdoutWrite(chunk, encoding, callback);
-    logStream.write(chunk, encoding);
+
+    // Write plain text (without ANSI codes) to log file
+    const cleanChunk = stripAnsi(chunk.toString());
+
+    // Handle carriage returns - only log when we get a newline
+    if (cleanChunk.includes('\r') && !cleanChunk.includes('\n')) {
+      // Buffer this line - it will be overwritten in terminal
+      stdoutBuffer = cleanChunk.replace(/\r/g, '');
+    } else if (cleanChunk.includes('\n')) {
+      // Flush buffer if exists, then write the new line
+      if (stdoutBuffer) {
+        stdoutBuffer = ''; // Clear buffer without writing (it was overwritten)
+      }
+      logStream.write(cleanChunk);
+    } else {
+      // Normal write
+      logStream.write(cleanChunk);
+    }
+
     return true;
   };
 
   // Override stderr
   process.stderr.write = function(chunk, encoding, callback) {
-    // Write to both original stderr and log file
+    // Write colorized output to terminal
     originalStderrWrite(chunk, encoding, callback);
-    logStream.write(chunk, encoding);
+
+    // Write plain text (without ANSI codes) to log file
+    const cleanChunk = stripAnsi(chunk.toString());
+
+    // Handle carriage returns - only log when we get a newline
+    if (cleanChunk.includes('\r') && !cleanChunk.includes('\n')) {
+      // Buffer this line - it will be overwritten in terminal
+      stderrBuffer = cleanChunk.replace(/\r/g, '');
+    } else if (cleanChunk.includes('\n')) {
+      // Flush buffer if exists, then write the new line
+      if (stderrBuffer) {
+        stderrBuffer = ''; // Clear buffer without writing (it was overwritten)
+      }
+      logStream.write(cleanChunk);
+    } else {
+      // Normal write
+      logStream.write(cleanChunk);
+    }
+
     return true;
   };
 
@@ -44,6 +107,14 @@ export async function setupLogging(logFilePath) {
     process.stdout.write = originalStdoutWrite;
     process.stderr.write = originalStderrWrite;
 
+    // Flush any remaining buffers
+    if (stdoutBuffer) {
+      logStream.write(stdoutBuffer + '\n');
+    }
+    if (stderrBuffer) {
+      logStream.write(stderrBuffer + '\n');
+    }
+
     // Close the log stream
     return new Promise((resolve, reject) => {
       logStream.end((err) => {