diff --git a/src/hooks/claude-code-hooks/user-prompt-submit.test.ts b/src/hooks/claude-code-hooks/user-prompt-submit.test.ts
new file mode 100644
index 000000000..334164fbe
--- /dev/null
+++ b/src/hooks/claude-code-hooks/user-prompt-submit.test.ts
@@ -0,0 +1,107 @@
+import { describe, it, expect } from "bun:test"
+import {
+  executeUserPromptSubmitHooks,
+  type UserPromptSubmitContext,
+} from "./user-prompt-submit"
+
+describe("executeUserPromptSubmitHooks", () => {
+  it("returns early when no config provided", async () => {
+    // given
+    const ctx: UserPromptSubmitContext = {
+      sessionId: "test-session",
+      prompt: "test prompt",
+      parts: [{ type: "text", text: "test prompt" }],
+      cwd: "/tmp",
+    }
+
+    // when
+    const result = await executeUserPromptSubmitHooks(ctx, null)
+
+    // then
+    expect(result.block).toBe(false)
+    expect(result.messages).toEqual([])
+  })
+
+  it("returns early when hook tags present in user input", async () => {
+    // given
+    const ctx: UserPromptSubmitContext = {
+      sessionId: "test-session",
+      prompt: "<user-prompt-submit-hook>previous output</user-prompt-submit-hook>",
+      parts: [
+        {
+          type: "text",
+          text: "<user-prompt-submit-hook>previous output</user-prompt-submit-hook>",
+        },
+      ],
+      cwd: "/tmp",
+    }
+
+    // when
+    const result = await executeUserPromptSubmitHooks(ctx, null)
+
+    // then
+    expect(result.block).toBe(false)
+    expect(result.messages).toEqual([])
+  })
+
+  it("does not return early when hook tags in prompt but not in user input", async () => {
+    // given - simulates case where hook output was injected into session context
+    // but current user input does not contain tags
+    const ctx: UserPromptSubmitContext = {
+      sessionId: "test-session",
+      prompt:
+        "<user-prompt-submit-hook>previous output</user-prompt-submit-hook>\n\nuser message",
+      parts: [{ type: "text", text: "user message" }],
+      cwd: "/tmp",
+    }
+
+    // when
+    const result = await executeUserPromptSubmitHooks(ctx, null)
+
+    // then - should not return early, should continue to config check
+    expect(result.block).toBe(false)
+    expect(result.messages).toEqual([])
+  })
+
+  it("should fire on first prompt", async () => {
+    // given
+    const ctx: UserPromptSubmitContext = {
+      sessionId: "test-session-1",
+      prompt: "first prompt",
+      parts: [{ type: "text", text: "first prompt" }],
+      cwd: "/tmp",
+    }
+
+    // when
+    const result = await executeUserPromptSubmitHooks(ctx, null)
+
+    // then
+    expect(result.block).toBe(false)
+    expect(result.messages).toEqual([])
+  })
+
+  it("should fire on second prompt in same session", async () => {
+    // given
+    const ctx1: UserPromptSubmitContext = {
+      sessionId: "test-session-2",
+      prompt: "first prompt",
+      parts: [{ type: "text", text: "first prompt" }],
+      cwd: "/tmp",
+    }
+
+    const ctx2: UserPromptSubmitContext = {
+      sessionId: "test-session-2",
+      prompt: "second prompt",
+      parts: [{ type: "text", text: "second prompt" }],
+      cwd: "/tmp",
+    }
+
+    // when
+    const result1 = await executeUserPromptSubmitHooks(ctx1, null)
+    const result2 = await executeUserPromptSubmitHooks(ctx2, null)
+
+    // then
+    expect(result1.block).toBe(false)
+    expect(result2.block).toBe(false)
+  })
+})
diff --git a/src/hooks/claude-code-hooks/user-prompt-submit.ts b/src/hooks/claude-code-hooks/user-prompt-submit.ts
index b358ef392..80f1b0bf6 100644
--- a/src/hooks/claude-code-hooks/user-prompt-submit.ts
+++ b/src/hooks/claude-code-hooks/user-prompt-submit.ts
@@ -44,9 +44,16 @@ export async function executeUserPromptSubmitHooks(
     return { block: false, modifiedParts, messages }
   }
 
+  // Check if hook tags are in the current user input only (not in injected context)
+  // by checking only the text parts that were provided in this message
+  const userInputText = ctx.parts
+    .filter((p) => p.type === "text" && p.text)
+    .map((p) => p.text ?? "")
+    .join("\n")
+
   if (
-    ctx.prompt.includes(USER_PROMPT_SUBMIT_TAG_OPEN) &&
-    ctx.prompt.includes(USER_PROMPT_SUBMIT_TAG_CLOSE)
+    userInputText.includes(USER_PROMPT_SUBMIT_TAG_OPEN) &&
+    userInputText.includes(USER_PROMPT_SUBMIT_TAG_CLOSE)
   ) {
     return { block: false, modifiedParts, messages }
   }