diff --git a/apps/web/src/components/ChatMarkdown.tsx b/apps/web/src/components/ChatMarkdown.tsx
index 0b0116be549cb..8b30a8b66c01d 100644
--- a/apps/web/src/components/ChatMarkdown.tsx
+++ b/apps/web/src/components/ChatMarkdown.tsx
@@ -94,7 +94,7 @@ import { defaultUrlTransform } from "react-markdown";
 import { parseAssistantCitationHref } from "@t3tools/shared/assistantCitations";
 import { parseComposerContextHref } from "@t3tools/shared/composerContextReferences";
 import { parseThreadLinkHref } from "@t3tools/shared/threadLinks";
-import { AssistantCitationChip } from "./chat/AssistantCitationChip";
+import { AssistantCitationEmbed } from "./chat/AssistantCitationChip";
 import { MarkdownThreadLink } from "./chat/MarkdownThreadLink";
 import { mathKind } from "@t3tools/shared/markdownMath";
 import remarkMath from "remark-math";
@@ -952,6 +952,15 @@ const ChatMarkdownRendererContext = React.createContext<
 // Isolate streamed source text from the renderer context; only offset-based renderers need it.
 const ChatMarkdownTextContext = React.createContext("");
 
+// A quote card is a block. These say nothing else shares its paragraph or list item on that side.
+const LIST_MARKER = String.raw`(?:[-*+]|\d+[.)])[ \t]+`;
+const CITATION_LEADS_BLOCK = new RegExp(
+  String.raw`(?:(?:^|\n[ \t]*\n)[ \t>]*(?:${LIST_MARKER})?|\n[ \t>]*${LIST_MARKER})$`,
+);
+const CITATION_ENDS_BLOCK = new RegExp(
+  String.raw`^[ \t]*(?:$|\n[ \t]*(?:\n|$)|\n[ \t>]*${LIST_MARKER})`,
+);
+
 function markdownHeadingRenderer(level: 1 | 2 | 3 | 4 | 5 | 6) {
   const Tag = `h${level}` as const;
   return function MarkdownHeading({
@@ -1096,7 +1105,17 @@ const CHAT_MARKDOWN_COMPONENTS = {
     } = use(ChatMarkdownRendererContext);
     const text = use(ChatMarkdownTextContext);
     const citation = href ? parseAssistantCitationHref(href) : null;
-    if (citation) return <AssistantCitationChip citation={citation} />;
+    if (citation) {
+      const before = node?.position?.start.offset;
+      const after = node?.position?.end.offset;
+      return (
+        <AssistantCitationEmbed
+          citation={citation}
+          leading={before !== undefined && CITATION_LEADS_BLOCK.test(text.slice(0, before))}
+          trailing={after !== undefined && CITATION_ENDS_BLOCK.test(text.slice(after))}
+        />
+      );
+    }
     const threadLink = href ? parseThreadLinkHref(href) : null;
     if (threadLink) {
       const written = hastPlainTextDeep(node);
diff --git a/apps/web/src/components/ComposerPromptEditorTiptap.tsx b/apps/web/src/components/ComposerPromptEditorTiptap.tsx
index 1986cc888efba..40accf71b219d 100644
--- a/apps/web/src/components/ComposerPromptEditorTiptap.tsx
+++ b/apps/web/src/components/ComposerPromptEditorTiptap.tsx
@@ -523,7 +523,6 @@ function ComposerCitationNodeView({ node, editor, getPos }: NodeViewProps) {
     >
       <AssistantCitationChip
         citation={citation}
-        composer
         commentEditor={{
           open: commentTarget !== null,
           sourceAnchor: commentTarget?.sourceAnchor,
diff --git a/apps/web/src/components/chat/AssistantCitationChip.browser.test.tsx b/apps/web/src/components/chat/AssistantCitationChip.browser.test.tsx
index 214e4efd69b9f..667c19fe4718c 100644
--- a/apps/web/src/components/chat/AssistantCitationChip.browser.test.tsx
+++ b/apps/web/src/components/chat/AssistantCitationChip.browser.test.tsx
@@ -61,7 +61,6 @@ function mount(
     return (
       <AssistantCitationChip
         citation={chipCitation}
-        composer
         commentEditor={{ open, sourceAnchor, onOpenChange: setOpen, onSave }}
       />
     );
diff --git a/apps/web/src/components/chat/AssistantCitationChip.tsx b/apps/web/src/components/chat/AssistantCitationChip.tsx
index 35935171f46ab..803779b995d52 100644
--- a/apps/web/src/components/chat/AssistantCitationChip.tsx
+++ b/apps/web/src/components/chat/AssistantCitationChip.tsx
@@ -5,7 +5,7 @@ import {
   serializeAssistantCitation,
 } from "@t3tools/shared/assistantCitations";
 import { Link, useNavigate } from "@tanstack/react-router";
-import { ArrowUpRightIcon, PencilIcon, QuoteIcon } from "lucide-react";
+import { PencilIcon, QuoteIcon } from "lucide-react";
 import {
   useEffect,
   useEffectEvent,
@@ -24,24 +24,93 @@ import {
 import { cn } from "~/lib/utils";
 import { useQuietThreadShell } from "~/state/entities";
 import { ContextChip, ContextChipAction, ContextChipLabel } from "../ContextChip";
-import { ContextChipPopover } from "../contextChipParts";
-import { Button } from "../ui/button";
-import { Popover, PopoverClose, PopoverPopup, PopoverTrigger } from "../ui/popover";
-import { getVirtualizedScrollFadeClassName } from "../ui/scroll-area";
+import { Popover, PopoverPopup, PopoverTrigger } from "../ui/popover";
 import { AssistantCitationCommentEditor } from "./AssistantCitationCommentEditor";
 import { resolveAssistantCitationCommentDismissal } from "./assistantCitationCommentDismissal";
 import { observeAssistantCitationCommentSource } from "./AssistantCitationSource";
 import { composerFloatingLayerProps } from "./composerEventScope";
-import { observeResize } from "~/lib/observeResize";
 import { textDirection } from "~/textDirection";
 
+function useCitationSourceLinkProps(citation: AssistantCitation) {
+  const navigate = useNavigate();
+  const sourceThread = useQuietThreadShell(
+    scopeThreadRef(citation.environmentId, citation.threadId),
+  );
+  return {
+    ...assistantCitationRoute(citation, sourceThread),
+    "data-markdown-copy": serializeAssistantCitation(citation),
+    onClick: (event: ReactMouseEvent<HTMLAnchorElement>) => {
+      if (event.button !== 0 || event.metaKey || event.ctrlKey || event.shiftKey || event.altKey) {
+        return;
+      }
+      event.preventDefault();
+      void navigate(assistantCitationNavigation(citation, sourceThread));
+    },
+  };
+}
+
+/**
+ * A quoted response inside a message. Clicking it goes to the source; its comment follows as
+ * text. `leading` and `trailing` say it starts or ends its block, which already has spacing.
+ */
+export function AssistantCitationEmbed({
+  citation,
+  leading,
+  trailing,
+}: {
+  citation: AssistantCitation;
+  leading: boolean;
+  trailing: boolean;
+}) {
+  const wholeResponse = citation.prefix === "" && citation.suffix === "";
+  const flat = (text: string) => text.replace(/\s+/g, " ");
+  const { comment, ...quoted } = citation;
+  const linkProps = useCitationSourceLinkProps(citation);
+  return (
+    // One copy boundary for the card and its comment, so a copied quote carries the comment once.
+    <span
+      data-markdown-copy={linkProps["data-markdown-copy"]}
+      className={cn("block", !leading && "mt-[0.65rem]", !trailing && "mb-[0.65rem]")}
+    >
+      <Link
+        {...linkProps}
+        // A selection inside the card's boundary copies the quote here and the comment as text.
+        data-markdown-copy={serializeAssistantCitation(quoted)}
+        // The quote is findable in its source message; here it is clamped and mostly hidden.
+        data-thread-find-ignore
+        aria-label={`Go to quoted response: ${assistantCitationLabel(quoted)}`}
+        // The message's markdown styles colour and underline links; a quote is neither.
+        className="block min-w-0 rounded-lg bg-black/10 px-2.5 py-1.5 text-start text-sm text-muted-foreground! no-underline! wrap-break-word hover:bg-black/14 focus-visible:outline-2 focus-visible:outline-ring dark:bg-black/35 dark:hover:bg-black/50"
+      >
+        <span className="line-clamp-2" dir={textDirection(citation.text)}>
+          {wholeResponse ? (
+            flat(citation.text)
+          ) : (
+            <>
+              {citation.prefix ? `…${flat(citation.prefix)}` : null}
+              <mark className="rounded-sm bg-foreground/12 px-0.5 text-foreground">
+                {flat(citation.text)}
+              </mark>
+              {citation.suffix ? `${flat(citation.suffix)}…` : null}
+            </>
+          )}
+        </span>
+      </Link>
+      {comment ? (
+        <span className="mt-1.5 block whitespace-pre-wrap" dir={textDirection(comment)}>
+          {comment}
+        </span>
+      ) : null}
+    </span>
+  );
+}
+
+/** The citation chip in the composer, with its comment editor. */
 export function AssistantCitationChip({
   citation,
-  composer = false,
   commentEditor,
 }: {
   citation: AssistantCitation;
-  composer?: boolean;
   commentEditor?: {
     open: boolean;
     sourceAnchor?: AssistantCitationSourceAnchor | undefined;
@@ -53,10 +122,7 @@ export function AssistantCitationChip({
     onRestoreFocus?: () => void;
   };
 }) {
-  const navigate = useNavigate();
-  const sourceThread = useQuietThreadShell(
-    scopeThreadRef(citation.environmentId, citation.threadId),
-  );
+  const sourceLinkProps = useCitationSourceLinkProps(citation);
   const commentInputRef = useRef<HTMLTextAreaElement>(null);
   const commentPopupRef = useRef<HTMLDivElement>(null);
   const draftCommentRef = useRef<string | null>(null);
@@ -116,17 +182,6 @@ export function AssistantCitationChip({
       }
     : undefined;
   const label = assistantCitationLabel(citation);
-  const sourceLinkProps = {
-    ...assistantCitationRoute(citation, sourceThread),
-    "data-markdown-copy": serializeAssistantCitation(citation),
-    onClick: (event: ReactMouseEvent<HTMLAnchorElement>) => {
-      if (event.button !== 0 || event.metaKey || event.ctrlKey || event.shiftKey || event.altKey) {
-        return;
-      }
-      event.preventDefault();
-      void navigate(assistantCitationNavigation(citation, sourceThread));
-    },
-  };
   const composerSourceLink = (
     <Link
       {...sourceLinkProps}
@@ -139,27 +194,6 @@ export function AssistantCitationChip({
       </ContextChipLabel>
     </Link>
   );
-  if (!composer) {
-    return (
-      <ContextChipPopover
-        kind="citation"
-        icon={<QuoteIcon />}
-        label={label}
-        accessibleLabel={`Quoted assistant text: ${label}`}
-        copyMarkdown={serializeAssistantCitation(citation)}
-      >
-        <div className="flex max-h-[calc(var(--available-height)_-_1rem_-_2px)] flex-col items-start gap-3 p-1 text-sm">
-          <AssistantCitationQuote citation={citation} />
-          <PopoverClose
-            render={<Button variant="outline" size="sm" render={<Link {...sourceLinkProps} />} />}
-          >
-            <ArrowUpRightIcon aria-hidden="true" />
-            Go to source
-          </PopoverClose>
-        </div>
-      </ContextChipPopover>
-    );
-  }
   return (
     <ContextChip
       kind="citation"
@@ -262,34 +296,3 @@ export function AssistantCitationChip({
     </ContextChip>
   );
 }
-
-function AssistantCitationQuote({ citation }: { citation: AssistantCitation }) {
-  const [fade, setFade] = useState({ top: false, bottom: false });
-  const updateFade = (element: HTMLElement) => {
-    const top = element.scrollTop > 1;
-    const bottom = element.scrollHeight - element.clientHeight - element.scrollTop > 1;
-    setFade((current) =>
-      current.top === top && current.bottom === bottom ? current : { top, bottom },
-    );
-  };
-  const observeFade = (element: HTMLDivElement | null) =>
-    element ? observeResize(element, () => updateFade(element)) : undefined;
-  return (
-    <div
-      ref={observeFade}
-      onScroll={(event) => updateFade(event.currentTarget)}
-      className={cn(
-        "max-h-64 min-h-0 space-y-3 self-stretch overflow-y-auto whitespace-pre-wrap wrap-break-word",
-        getVirtualizedScrollFadeClassName(fade),
-      )}
-    >
-      <blockquote
-        className="border-l-2 border-border pl-3 text-muted-foreground"
-        dir={textDirection(citation.text)}
-      >
-        {citation.text}
-      </blockquote>
-      {citation.comment ? <p dir={textDirection(citation.comment)}>{citation.comment}</p> : null}
-    </div>
-  );
-}
diff --git a/apps/web/src/components/chat/MessagesTimeline.logic.test.ts b/apps/web/src/components/chat/MessagesTimeline.logic.test.ts
index ba0f508ebeecd..8152deef89f42 100644
--- a/apps/web/src/components/chat/MessagesTimeline.logic.test.ts
+++ b/apps/web/src/components/chat/MessagesTimeline.logic.test.ts
@@ -4538,22 +4538,25 @@ describe("subagent continued by a later turn", () => {
 });
 
 describe("shouldCollapseUserMessage", () => {
-  it("measures a quote chip by its label, not its encoded link", () => {
+  it("measures a quote by its card, not its encoded link", () => {
     const quote = "A long assistant paragraph that the user quoted. ".repeat(40);
-    const citation = serializeAssistantCitation({
-      version: 1,
+    const source = {
+      version: 1 as const,
       environmentId: EnvironmentId.make("environment"),
       threadId: ThreadId.make("thread"),
       messageId: MessageId.make("source"),
       text: quote,
-      comment: "Why does this matter?",
       start: 0,
       end: quote.length,
       prefix: "",
       suffix: "",
-    });
+    };
+    const citation = serializeAssistantCitation({ ...source, comment: "Why does this matter?" });
+    const bare = serializeAssistantCitation(source);
 
     expect(shouldCollapseUserMessage(`${citation} Can you expand on this?`)).toBe(false);
     expect(shouldCollapseUserMessage(`${citation} ${"More text. ".repeat(60)}`)).toBe(true);
+    expect(shouldCollapseUserMessage(bare.repeat(2))).toBe(false);
+    expect(shouldCollapseUserMessage(bare.repeat(10))).toBe(true);
   });
 });
diff --git a/apps/web/src/components/chat/MessagesTimeline.logic.ts b/apps/web/src/components/chat/MessagesTimeline.logic.ts
index 4536e9a250386..cd3e4eeec5c9f 100644
--- a/apps/web/src/components/chat/MessagesTimeline.logic.ts
+++ b/apps/web/src/components/chat/MessagesTimeline.logic.ts
@@ -3,10 +3,7 @@ import { resolveUserMessagePresentation } from "@t3tools/client-runtime/user-mes
 import { isLiveSubagentTurnItem } from "@t3tools/client-runtime/state/subagentRuntime";
 import * as DateTime from "effect/DateTime";
 import * as Equal from "effect/Equal";
-import {
-  assistantCitationLabel,
-  collectAssistantCitations,
-} from "@t3tools/shared/assistantCitations";
+import { collectAssistantCitations } from "@t3tools/shared/assistantCitations";
 import { shallow } from "zustand/vanilla/shallow";
 import { claudeResumeCompactionAge } from "@t3tools/shared/claudeCompaction";
 import {
@@ -2654,7 +2651,9 @@ function visibleUserMessageText(text: string): string {
   let visible = "";
   let cursor = 0;
   for (const match of collectAssistantCitations(text)) {
-    visible += linkLabels(text.slice(cursor, match.start)) + assistantCitationLabel(match.citation);
+    // A quote shows as a two-line card, counted here as a mark, with its comment under it.
+    visible += linkLabels(text.slice(cursor, match.start));
+    visible += "\n\u275D\n" + (match.citation.comment ?? "") + "\n";
     cursor = match.end;
   }
   return visible + linkLabels(text.slice(cursor));
diff --git a/packages/shared/src/threadFindText.test.ts b/packages/shared/src/threadFindText.test.ts
index 77a0874c21336..ea3604c4e1610 100644
--- a/packages/shared/src/threadFindText.test.ts
+++ b/packages/shared/src/threadFindText.test.ts
@@ -96,7 +96,7 @@ it("indexes nested disclosure summaries and bodies in rendered order", () => {
   ).toEqual(["Outer", "first", "Inner", "second"]);
 });
 
-it("indexes the citation chip label instead of its link text", () => {
+it("indexes a citation by its comment, not its quote or link text", () => {
   const citation = {
     version: 1 as const,
     environmentId: EnvironmentId.make("environment"),
@@ -110,10 +110,11 @@ it("indexes the citation chip label instead of its link text", () => {
   };
   const text = `Please fix ${serializeAssistantCitation(citation)} thanks`;
   expect(searchableMessageSegments({ role: "user", text, streaming: false })).toEqual([
-    "Please fix cited needle thanks",
-  ]);
-  const commented = serializeAssistantCitation({ ...citation, comment: "my note" });
-  expect(searchableMessageSegments({ role: "user", text: commented, streaming: false })).toEqual([
-    "my note",
+    "Please fix ",
+    " thanks",
   ]);
+  const commented = serializeAssistantCitation({ ...citation, comment: "my\nnote" });
+  expect(
+    searchableMessageSegments({ role: "user", text: `fix ${commented} thanks`, streaming: false }),
+  ).toEqual(["fix ", "my note thanks"]);
 });
diff --git a/packages/shared/src/threadFindText.ts b/packages/shared/src/threadFindText.ts
index 3afec6e04729e..8d235e161e94d 100644
--- a/packages/shared/src/threadFindText.ts
+++ b/packages/shared/src/threadFindText.ts
@@ -25,7 +25,7 @@ import {
   isAttachmentOnlyBootstrapPrompt,
   parseComposerContextHref,
 } from "./composerContextReferences.ts";
-import { assistantCitationLabel, parseAssistantCitationHref } from "./assistantCitations.ts";
+import { parseAssistantCitationHref } from "./assistantCitations.ts";
 import type { OrchestrationV2ConversationMessage } from "@t3tools/contracts";
 import { proposedPlanTitle, stripDisplayedPlanMarkdown } from "./proposedPlanText.ts";
 import { unified } from "unified";
@@ -141,7 +141,9 @@ function markdownThreadFindText(
     const citation =
       node.tagName === "a" && typeof href === "string" ? parseAssistantCitationHref(href) : null;
     if (citation) {
-      text += assistantCitationLabel(citation);
+      // The quote card is not searched, and it splits the text before it from its comment.
+      flush();
+      text += (citation.comment ?? "").replace(/\r?\n/g, " ");
       return;
     }
     {