diff --git a/apps/frontend/src/main/terminal/__tests__/claude-integration-handler.test.ts b/apps/frontend/src/main/terminal/__tests__/claude-integration-handler.test.ts
index fa61e8b3..a72f5550 100644
--- a/apps/frontend/src/main/terminal/__tests__/claude-integration-handler.test.ts
+++ b/apps/frontend/src/main/terminal/__tests__/claude-integration-handler.test.ts
@@ -369,7 +369,7 @@ describe('claude-integration-handler', () => {
     expect(mockPersistSession).toHaveBeenCalledWith(terminal);
   });
 
-  it('uses the resolved CLI path for resume and continue', async () => {
+  it('uses --continue regardless of sessionId (sessionId is deprecated)', async () => {
     mockGetClaudeCliInvocation.mockReturnValue({
       command: '/opt/claude/bin/claude',
       env: { PATH: '/opt/claude/bin:/usr/bin' },
@@ -382,19 +382,22 @@ describe('claude-integration-handler', () => {
     });
 
     const { resumeClaude } = await import('../claude-integration-handler');
+
+    // Even when sessionId is passed, it should be ignored and --continue used
     resumeClaude(terminal, 'abc123', () => null);
 
     const resumeCall = vi.mocked(terminal.pty.write).mock.calls[0][0] as string;
     expect(resumeCall).toContain("PATH='/opt/claude/bin:/usr/bin' ");
-    expect(resumeCall).toContain("'/opt/claude/bin/claude' --resume 'abc123'");
-    expect(terminal.claudeSessionId).toBe('abc123');
+    expect(resumeCall).toContain("'/opt/claude/bin/claude' --continue");
+    expect(resumeCall).not.toContain('--resume');
+    // sessionId is cleared because --continue doesn't track specific sessions
+    expect(terminal.claudeSessionId).toBeUndefined();
     expect(terminal.isClaudeMode).toBe(true);
     expect(mockPersistSession).toHaveBeenCalledWith(terminal);
 
     vi.mocked(terminal.pty.write).mockClear();
     mockPersistSession.mockClear();
     terminal.projectPath = undefined;
-    terminal.claudeSessionId = undefined;
     terminal.isClaudeMode = false;
     resumeClaude(terminal, undefined, () => null);
     const continueCall = vi.mocked(terminal.pty.write).mock.calls[0][0] as string;
diff --git a/apps/frontend/src/main/terminal/claude-integration-handler.ts b/apps/frontend/src/main/terminal/claude-integration-handler.ts
index d82bc09b..27b6865a 100644
--- a/apps/frontend/src/main/terminal/claude-integration-handler.ts
+++ b/apps/frontend/src/main/terminal/claude-integration-handler.ts
@@ -367,11 +367,19 @@ export function invokeClaude(
 }
 
 /**
- * Resume Claude with optional session ID
+ * Resume Claude session in the current directory
+ *
+ * Uses `claude --continue` which resumes the most recent conversation in the
+ * current directory. This is simpler and more reliable than tracking session IDs,
+ * since Auto Claude already restores terminals to their correct cwd/projectPath.
+ *
+ * Note: The sessionId parameter is kept for backwards compatibility but is ignored.
+ * Claude Code's --resume flag expects user-named sessions (set via /rename), not
+ * internal session file IDs.
  */
 export function resumeClaude(
   terminal: TerminalProcess,
-  sessionId: string | undefined,
+  _sessionId: string | undefined,
   getWindow: WindowGetter
 ): void {
   terminal.isClaudeMode = true;
@@ -383,15 +391,21 @@ export function resumeClaude(
     ? `PATH=${escapeShellArg(normalizePathForBash(claudeEnv.PATH))} `
     : '';
 
-  let command: string;
-  if (sessionId) {
-    // SECURITY: Escape sessionId to prevent command injection
-    command = `${pathPrefix}${escapedClaudeCmd} --resume ${escapeShellArg(sessionId)}`;
-    terminal.claudeSessionId = sessionId;
-  } else {
-    command = `${pathPrefix}${escapedClaudeCmd} --continue`;
+  // Always use --continue which resumes the most recent session in the current directory.
+  // This is more reliable than --resume with session IDs since Auto Claude already restores
+  // terminals to their correct cwd/projectPath.
+  //
+  // Note: We clear claudeSessionId because --continue doesn't track specific sessions,
+  // and we don't want stale IDs persisting through SessionHandler.persistSession().
+  terminal.claudeSessionId = undefined;
+
+  // Deprecation warning for callers still passing sessionId
+  if (_sessionId) {
+    console.warn('[ClaudeIntegration:resumeClaude] sessionId parameter is deprecated and ignored; using claude --continue instead');
   }
 
+  const command = `${pathPrefix}${escapedClaudeCmd} --continue`;
+
   terminal.pty.write(`${command}\r`);
 
   // Update terminal title in main process and notify renderer
diff --git a/apps/frontend/src/main/terminal/terminal-lifecycle.ts b/apps/frontend/src/main/terminal/terminal-lifecycle.ts
index 7f0ceebe..c366ed7e 100644
--- a/apps/frontend/src/main/terminal/terminal-lifecycle.ts
+++ b/apps/frontend/src/main/terminal/terminal-lifecycle.ts
@@ -23,8 +23,9 @@ import { debugLog, debugError } from '../../shared/utils/debug-logger';
 export interface RestoreOptions {
   resumeClaudeSession: boolean;
   captureSessionId: (terminalId: string, projectPath: string, startTime: number) => void;
-  /** Callback triggered when a Claude session needs to be resumed */
-  onResumeNeeded?: (terminalId: string, sessionId: string) => void;
+  /** Callback triggered when a Claude session needs to be resumed.
+   * Note: sessionId is deprecated and ignored - resumeClaude uses --continue */
+  onResumeNeeded?: (terminalId: string, sessionId: string | undefined) => void;
 }
 
 /**
@@ -184,15 +185,19 @@ export async function restoreTerminal(
     win.webContents.send(IPC_CHANNELS.TERMINAL_TITLE_CHANGE, session.id, session.title);
   }
 
-  // Auto-resume Claude if session was in Claude mode with a session ID
-  // Use storedIsClaudeMode and storedClaudeSessionId which come from the persisted store,
+  // Auto-resume Claude if session was in Claude mode
+  // Use storedIsClaudeMode which comes from the persisted store,
   // not the renderer-passed values (renderer always passes isClaudeMode: false)
-  if (options.resumeClaudeSession && storedIsClaudeMode && storedClaudeSessionId) {
+  //
+  // Note: We no longer require storedClaudeSessionId because resumeClaude uses
+  // `claude --continue` which resumes the most recent session in the directory
+  // automatically. Session IDs are deprecated and ignored.
+  if (options.resumeClaudeSession && storedIsClaudeMode) {
     terminal.isClaudeMode = true;
-    terminal.claudeSessionId = storedClaudeSessionId;
-    debugLog('[TerminalLifecycle] Auto-resuming Claude session:', storedClaudeSessionId);
+    // Don't set claudeSessionId - it's deprecated and --continue doesn't use it
+    debugLog('[TerminalLifecycle] Auto-resuming Claude session using --continue');
 
-    // Notify renderer of the Claude session so it can update its store
+    // Notify renderer that we're in Claude mode (session ID is deprecated)
     // This prevents the renderer from also trying to resume (duplicate command)
     if (win) {
       win.webContents.send(IPC_CHANNELS.TERMINAL_CLAUDE_SESSION, terminal.id, storedClaudeSessionId);
@@ -205,20 +210,12 @@ export async function restoreTerminal(
     }
 
     // Small delay to ensure PTY is ready before sending resume command
+    // Note: sessionId parameter is deprecated and ignored by resumeClaude
     if (options.onResumeNeeded) {
       setTimeout(() => {
         options.onResumeNeeded!(terminal.id, storedClaudeSessionId);
       }, 500);
     }
-  } else if (storedClaudeSessionId) {
-    // Keep session ID for manual resume (no auto-resume if not in Claude mode)
-    terminal.claudeSessionId = storedClaudeSessionId;
-    debugLog('[TerminalLifecycle] Preserved Claude session ID for manual resume:', storedClaudeSessionId);
-
-    // Persist the session ID so it's available even if app closes before periodic save
-    if (terminal.projectPath) {
-      SessionHandler.persistSession(terminal);
-    }
   }
 
   return {