diff --git a/src/shared/__tests__/parse-command.spec.ts b/src/shared/__tests__/parse-command.spec.ts
new file mode 100644
index 00000000000..85e06f2fe63
--- /dev/null
+++ b/src/shared/__tests__/parse-command.spec.ts
@@ -0,0 +1,231 @@
+import { parseCommand, joinQuotedLines } from "../parse-command"
+
+describe("joinQuotedLines", () => {
+	it("should return empty array for empty input", () => {
+		expect(joinQuotedLines("")).toEqual([])
+		expect(joinQuotedLines(null as any)).toEqual([])
+		expect(joinQuotedLines(undefined as any)).toEqual([])
+	})
+
+	it("should handle single line commands without quotes", () => {
+		expect(joinQuotedLines("echo hello")).toEqual(["echo hello"])
+		expect(joinQuotedLines("git status")).toEqual(["git status"])
+	})
+
+	it("should split multiple lines without quotes", () => {
+		expect(joinQuotedLines("echo hello\necho world")).toEqual(["echo hello", "echo world"])
+		expect(joinQuotedLines("git status\ngit log")).toEqual(["git status", "git log"])
+	})
+
+	it("should keep multiline double-quoted strings together", () => {
+		const input = 'bd create "This is a\nmultiline description"'
+		expect(joinQuotedLines(input)).toEqual([input])
+	})
+
+	it("should keep multiline single-quoted strings together", () => {
+		const input = "bd create 'This is a\nmultiline description'"
+		expect(joinQuotedLines(input)).toEqual([input])
+	})
+
+	it("should handle Windows line endings (CRLF) within quotes", () => {
+		const input = 'bd create "This is a\r\nmultiline description"'
+		expect(joinQuotedLines(input)).toEqual([input])
+	})
+
+	it("should handle Windows line endings (CRLF) between commands", () => {
+		const input = "echo hello\r\necho world"
+		expect(joinQuotedLines(input)).toEqual(["echo hello", "echo world"])
+	})
+
+	it("should handle old Mac line endings (CR) within quotes", () => {
+		const input = 'bd create "This is a\rmultiline description"'
+		expect(joinQuotedLines(input)).toEqual([input])
+	})
+
+	it("should handle multiple newlines within quotes", () => {
+		const input = 'bd create "Line 1\nLine 2\nLine 3"'
+		expect(joinQuotedLines(input)).toEqual([input])
+	})
+
+	it("should handle quoted strings followed by newline and another command", () => {
+		const input = 'bd create "multiline\ndesc"\necho done'
+		expect(joinQuotedLines(input)).toEqual(['bd create "multiline\ndesc"', "echo done"])
+	})
+
+	it("should handle escaped quotes within double-quoted strings", () => {
+		const input = 'echo "hello \\"world\\"\nline 2"'
+		expect(joinQuotedLines(input)).toEqual([input])
+	})
+
+	it("should handle single quotes within double quotes", () => {
+		const input = 'echo "it\'s\na test"'
+		expect(joinQuotedLines(input)).toEqual([input])
+	})
+
+	it("should handle double quotes within single quotes", () => {
+		// Single quotes preserve everything literally
+		const input = "echo 'He said \"hello\"\nworld'"
+		expect(joinQuotedLines(input)).toEqual([input])
+	})
+
+	it("should skip empty lines between commands", () => {
+		expect(joinQuotedLines("echo hello\n\necho world")).toEqual(["echo hello", "echo world"])
+		expect(joinQuotedLines("echo hello\n   \necho world")).toEqual(["echo hello", "echo world"])
+	})
+
+	it("should handle complex multiline commands with command chaining", () => {
+		const input = 'bd create "desc\nmore" && npm install\necho done'
+		expect(joinQuotedLines(input)).toEqual(['bd create "desc\nmore" && npm install', "echo done"])
+	})
+
+	it('should handle escaped backslash before closing quote (\\\\" sequence)', () => {
+		// \\" means escaped backslash (\\) followed by closing quote (")
+		// The string should end at the quote, not continue
+		const input = 'echo "hello\\\\"\necho done'
+		expect(joinQuotedLines(input)).toEqual(['echo "hello\\\\"', "echo done"])
+	})
+
+	it('should handle escaped backslash followed by escaped quote (\\\\\\" sequence)', () => {
+		// \\\" means escaped backslash (\\) followed by escaped quote (\")
+		// The string should continue past the quote
+		const input = 'echo "hello\\\\\\"world"\necho done'
+		expect(joinQuotedLines(input)).toEqual(['echo "hello\\\\\\"world"', "echo done"])
+	})
+})
+
+describe("parseCommand", () => {
+	it("should return empty array for empty input", () => {
+		expect(parseCommand("")).toEqual([])
+		expect(parseCommand("   ")).toEqual([])
+		expect(parseCommand(null as any)).toEqual([])
+		expect(parseCommand(undefined as any)).toEqual([])
+	})
+
+	it("should parse simple single command", () => {
+		expect(parseCommand("echo hello")).toEqual(["echo hello"])
+		expect(parseCommand("git status")).toEqual(["git status"])
+	})
+
+	it("should parse command chain with &&", () => {
+		expect(parseCommand("npm install && npm test")).toEqual(["npm install", "npm test"])
+	})
+
+	it("should parse command chain with ||", () => {
+		expect(parseCommand("npm test || echo failed")).toEqual(["npm test", "echo failed"])
+	})
+
+	it("should parse command chain with ;", () => {
+		expect(parseCommand("echo hello; echo world")).toEqual(["echo hello", "echo world"])
+	})
+
+	it("should parse commands on separate lines", () => {
+		expect(parseCommand("echo hello\necho world")).toEqual(["echo hello", "echo world"])
+	})
+
+	it("should handle multiline double-quoted strings as single command", () => {
+		const input = 'bd create "This is a\nmultiline description"'
+		const result = parseCommand(input)
+		expect(result).toEqual(['bd create "This is a\nmultiline description"'])
+	})
+
+	it("should handle multiline single-quoted strings as single command", () => {
+		const input = "bd create 'This is a\nmultiline description'"
+		const result = parseCommand(input)
+		// Note: shell-quote strips single quotes, but the multiline content stays together
+		expect(result.length).toBe(1)
+		expect(result[0]).toContain("bd create")
+		expect(result[0]).toContain("This is a")
+		expect(result[0]).toContain("multiline description")
+	})
+
+	it("should handle multiline quoted string with command chain on same line", () => {
+		const input = 'bd create "desc\nmore" && echo done'
+		const result = parseCommand(input)
+		expect(result).toEqual(['bd create "desc\nmore"', "echo done"])
+	})
+
+	it("should handle multiline quoted string followed by newline command", () => {
+		const input = 'bd create "desc\nmore"\necho done'
+		const result = parseCommand(input)
+		expect(result).toEqual(['bd create "desc\nmore"', "echo done"])
+	})
+
+	it("should handle real-world beads create command", () => {
+		const input = `bd create "This is the first line.
+This is the second line.
+This is the third line."`
+		const result = parseCommand(input)
+		expect(result.length).toBe(1)
+		expect(result[0]).toContain("bd create")
+		expect(result[0]).toContain("first line")
+		expect(result[0]).toContain("third line")
+	})
+
+	it("should handle beads command followed by another command", () => {
+		const input = `bd create "Multiline
+description" && npm install`
+		const result = parseCommand(input)
+		expect(result).toEqual(['bd create "Multiline\ndescription"', "npm install"])
+	})
+
+	it("should handle multiple multiline quoted strings in sequence", () => {
+		const input = 'echo "Line 1\nLine 2" && echo "Line 3\nLine 4"'
+		const result = parseCommand(input)
+		expect(result).toEqual(['echo "Line 1\nLine 2"', 'echo "Line 3\nLine 4"'])
+	})
+
+	it("should handle Windows line endings in multiline quotes", () => {
+		const input = 'bd create "Line 1\r\nLine 2"'
+		const result = parseCommand(input)
+		expect(result).toEqual(['bd create "Line 1\r\nLine 2"'])
+	})
+
+	it("should preserve variable references", () => {
+		const input = 'echo $HOME && echo "path: $PATH"'
+		const result = parseCommand(input)
+		expect(result.length).toBe(2)
+		expect(result[0]).toContain("$HOME")
+		expect(result[1]).toContain("$PATH")
+	})
+
+	it("should handle empty lines in the input", () => {
+		const input = "echo hello\n\necho world"
+		const result = parseCommand(input)
+		expect(result).toEqual(["echo hello", "echo world"])
+	})
+})
+
+describe("parseCommand - auto-approval validation scenarios", () => {
+	// These tests verify the fix for issue #10226:
+	// Multiline commands with quoted strings should be correctly parsed
+	// for auto-approval validation
+
+	it("should correctly identify bd command prefix with multiline description", () => {
+		const input = 'bd create "This is a\nmultiline\ndescription"'
+		const result = parseCommand(input)
+
+		// Should be a single command that starts with "bd"
+		expect(result.length).toBe(1)
+		expect(result[0].startsWith("bd ")).toBe(true)
+	})
+
+	it("should correctly split bd command from other commands", () => {
+		const input = 'bd create "desc\nmore" && npm install'
+		const result = parseCommand(input)
+
+		expect(result.length).toBe(2)
+		expect(result[0].startsWith("bd ")).toBe(true)
+		expect(result[1].startsWith("npm ")).toBe(true)
+	})
+
+	it("should handle multiline command on separate lines from other commands", () => {
+		const input = `bd create "multiline
+description"
+echo done`
+		const result = parseCommand(input)
+
+		expect(result.length).toBe(2)
+		expect(result[0].startsWith("bd ")).toBe(true)
+		expect(result[1]).toBe("echo done")
+	})
+})
diff --git a/src/shared/parse-command.ts b/src/shared/parse-command.ts
index a8d87b76acf..2d82c5c3535 100644
--- a/src/shared/parse-command.ts
+++ b/src/shared/parse-command.ts
@@ -2,6 +2,101 @@ import { parse } from "shell-quote"
 
 export type ShellToken = string | { op: string } | { command: string }
 
+/**
+ * Join lines that are within quoted strings.
+ *
+ * This function scans through the input character by character, tracking
+ * whether we're inside a quoted string. When we encounter a newline while
+ * inside quotes, we preserve it rather than splitting the command.
+ *
+ * This approach:
+ * - Preserves the original content exactly (no placeholder replacement/restoration)
+ * - Properly handles both single and double quotes
+ * - Handles escaped quotes within strings
+ * - Handles different line ending formats (CRLF, LF, CR)
+ *
+ * @param command - The command string that may contain multiline quoted strings
+ * @returns Array of logical command lines with multiline quotes joined
+ */
+export function joinQuotedLines(command: string): string[] {
+	if (!command) {
+		return []
+	}
+
+	const result: string[] = []
+	let currentLine = ""
+	let inDoubleQuote = false
+	let inSingleQuote = false
+	let i = 0
+
+	while (i < command.length) {
+		const char = command[i]
+
+		// Handle escape sequences (only in double quotes, single quotes are literal)
+		// Count consecutive backslashes before the current character
+		// If odd count, the current character is escaped; if even, it's not
+		// e.g., \" = escaped quote, \\" = escaped backslash + closing quote
+		let backslashCount = 0
+		if (inDoubleQuote) {
+			let j = i - 1
+			while (j >= 0 && command[j] === "\\") {
+				backslashCount++
+				j--
+			}
+		}
+		const isEscaped = backslashCount % 2 === 1
+
+		// Handle quote state changes
+		if (char === '"' && !inSingleQuote && !isEscaped) {
+			inDoubleQuote = !inDoubleQuote
+			currentLine += char
+		} else if (char === "'" && !inDoubleQuote) {
+			// Single quotes can't be escaped, so we just toggle
+			inSingleQuote = !inSingleQuote
+			currentLine += char
+		} else if (char === "\r" || char === "\n") {
+			// Handle different line endings: \r\n, \n, or \r
+			if (char === "\r" && command[i + 1] === "\n") {
+				// CRLF - consume both characters
+				if (inDoubleQuote || inSingleQuote) {
+					// Inside quotes - preserve the newline in the command
+					currentLine += "\r\n"
+				} else {
+					// Outside quotes - this is a line separator
+					if (currentLine.trim()) {
+						result.push(currentLine)
+					}
+					currentLine = ""
+				}
+				i++ // Skip the \n since we consumed it
+			} else {
+				// LF or CR alone
+				if (inDoubleQuote || inSingleQuote) {
+					// Inside quotes - preserve the newline in the command
+					currentLine += char
+				} else {
+					// Outside quotes - this is a line separator
+					if (currentLine.trim()) {
+						result.push(currentLine)
+					}
+					currentLine = ""
+				}
+			}
+		} else {
+			currentLine += char
+		}
+
+		i++
+	}
+
+	// Don't forget the last line
+	if (currentLine.trim()) {
+		result.push(currentLine)
+	}
+
+	return result
+}
+
 /**
  * Split a command string into individual sub-commands by
  * chaining operators (&&, ||, ;, |, or &) and newlines.
@@ -11,16 +106,16 @@ export type ShellToken = string | { op: string } | { command: string }
  * - Subshell commands ($(cmd), `cmd`, <(cmd), >(cmd))
  * - PowerShell redirections (2>&1)
  * - Chain operators (&&, ||, ;, |, &)
- * - Newlines as command separators
+ * - Newlines as command separators (respecting quoted strings)
  */
 export function parseCommand(command: string): string[] {
 	if (!command?.trim()) {
 		return []
 	}
 
-	// Split by newlines first (handle different line ending formats)
-	// This regex splits on \r\n (Windows), \n (Unix), or \r (old Mac)
-	const lines = command.split(/\r\n|\r|\n/)
+	// Join lines that are within quoted strings first
+	// This preserves multiline quoted content as single logical lines
+	const lines = joinQuotedLines(command)
 	const allCommands: string[] = []
 
 	for (const line of lines) {