diff --git a/codex-cli/src/utils/agent/agent-loop.ts b/codex-cli/src/utils/agent/agent-loop.ts
index aaca48f3..6f7b8828 100644
--- a/codex-cli/src/utils/agent/agent-loop.ts
+++ b/codex-cli/src/utils/agent/agent-loop.ts
@@ -861,7 +861,6 @@ export class AgentLoop {
             throw error;
           }
         }
-        turnInput = []; // clear turn input, prepare for function call results
 
         // If the user requested cancellation while we were awaiting the network
         // request, abort immediately before we start handling the stream.
@@ -894,6 +893,8 @@ export class AgentLoop {
         // eslint-disable-next-line no-constant-condition
         while (true) {
           try {
+            let newTurnInput: Array<ResponseInputItem> = [];
+
             // eslint-disable-next-line no-await-in-loop
             for await (const event of stream as AsyncIterable<ResponseEvent>) {
               log(`AgentLoop.run(): response event ${event.type}`);
@@ -935,7 +936,7 @@ export class AgentLoop {
                     "requires_action"
                 ) {
                   // TODO: remove this once we can depend on streaming events
-                  const newTurnInput = await this.processEventsWithoutStreaming(
+                  newTurnInput = await this.processEventsWithoutStreaming(
                     event.response.output,
                     stageItem,
                   );
@@ -970,24 +971,30 @@ export class AgentLoop {
 
                     if (delta.length === 0) {
                       // No new input => end conversation.
-                      turnInput = [];
+                      newTurnInput = [];
                     } else {
                       // Re‑send full transcript *plus* the new delta so the
                       // stateless backend receives complete context.
-                      turnInput = [...this.transcript, ...delta];
+                      newTurnInput = [...this.transcript, ...delta];
                       // The prefix ends at the current transcript length –
                       // everything after this index is new for the next
                       // iteration.
                       transcriptPrefixLen = this.transcript.length;
                     }
-                  } else {
-                    turnInput = newTurnInput;
                   }
                 }
                 lastResponseId = event.response.id;
                 this.onLastResponseId(event.response.id);
               }
             }
+
+            // Set after we have consumed all stream events in case the stream wasn't
+            // complete or we missed events for whatever reason. That way, we will set
+            // the next turn to an empty array to prevent an infinite loop.
+            // And don't update the turn input too early otherwise we won't have the
+            // current turn inputs available for retries.
+            turnInput = newTurnInput;
+
             // Stream finished successfully – leave the retry loop.
             break;
           } catch (err: unknown) {