diff --git a/cmd/picoclaw/cmd_agent.go b/cmd/picoclaw/cmd_agent.go
index 8658c9d32..b67bfd734 100644
--- a/cmd/picoclaw/cmd_agent.go
+++ b/cmd/picoclaw/cmd_agent.go
@@ -5,11 +5,14 @@ package main
 
 import (
 	"bufio"
+	"bytes"
 	"context"
 	"fmt"
 	"io"
 	"os"
+	"os/exec"
 	"path/filepath"
+	"runtime"
 	"strings"
 
 	"github.com/chzyer/readline"
@@ -20,6 +23,20 @@ import (
 	"github.com/sipeed/picoclaw/pkg/providers"
 )
 
+// Interactive mode identifiers
+const (
+	modePico   = "pico"   // Chat mode (default) - input goes to AI agent
+	modeCmd    = "cmd"    // Command mode - input executed as shell commands
+	modeHiPico = "hipico" // AI-assisted mode within cmd - multi-turn AI conversation
+)
+
+// cmdWorkingDir tracks the current working directory for command mode.
+var cmdWorkingDir string
+
+func init() {
+	cmdWorkingDir, _ = os.Getwd()
+}
+
 func agentCmd() {
 	message := ""
 	sessionKey := "cli:default"
@@ -30,7 +47,7 @@ func agentCmd() {
 		switch args[i] {
 		case "--debug", "-d":
 			logger.SetLevel(logger.DEBUG)
-			fmt.Println("🔍 Debug mode enabled")
+			fmt.Println("Debug mode enabled")
 		case "-m", "--message":
 			if i+1 < len(args) {
 				message = args[i+1]
@@ -90,16 +107,25 @@ func agentCmd() {
 		}
 		fmt.Printf("\n%s %s\n", logo, response)
 	} else {
-		fmt.Printf("%s Interactive mode (Ctrl+C to exit)\n\n", logo)
+		fmt.Printf("%s Interactive mode (Ctrl+C to exit)\n", logo)
+		fmt.Println("  /cmd     - switch to command mode")
+		fmt.Println("  /pico    - switch to chat mode")
+		fmt.Println("  /hipico  - AI assistance in command mode")
+		fmt.Println("  /byepico - end AI assistance")
+		fmt.Println()
 		interactiveMode(agentLoop, sessionKey)
 	}
 }
 
 func interactiveMode(agentLoop *agent.AgentLoop, sessionKey string) {
-	prompt := fmt.Sprintf("%s You: ", logo)
+	chatPrompt := fmt.Sprintf("%s You: ", logo)
+	cmdPrompt := "$ "
+	hipicoPrompt := fmt.Sprintf("%s> ", logo)
+
+	mode := modePico
 
 	rl, err := readline.NewEx(&readline.Config{
-		Prompt:          prompt,
+		Prompt:          chatPrompt,
 		HistoryFile:     filepath.Join(os.TempDir(), ".picoclaw_history"),
 		HistoryLimit:    100,
 		InterruptPrompt: "^C",
@@ -113,6 +139,8 @@ func interactiveMode(agentLoop *agent.AgentLoop, sessionKey string) {
 	}
 	defer rl.Close()
 
+	hipicoSessionKey := "cli:hipico"
+
 	for {
 		line, err := rl.Readline()
 		if err != nil {
@@ -134,21 +162,101 @@ func interactiveMode(agentLoop *agent.AgentLoop, sessionKey string) {
 			return
 		}
 
-		ctx := context.Background()
-		response, err := agentLoop.ProcessDirect(ctx, input, sessionKey)
-		if err != nil {
-			fmt.Printf("Error: %v\n", err)
-			continue
-		}
+		switch mode {
+		case modePico:
+			if input == "/cmd" {
+				mode = modeCmd
+				rl.SetPrompt(cmdPrompt)
+				fmt.Println("Switched to command mode. Type /pico to return to chat.")
+				continue
+			}
 
-		fmt.Printf("\n%s %s\n\n", logo, response)
+			ctx := context.Background()
+			response, err := agentLoop.ProcessDirect(ctx, input, sessionKey)
+			if err != nil {
+				fmt.Printf("Error: %v\n", err)
+				continue
+			}
+			fmt.Printf("\n%s %s\n\n", logo, response)
+
+		case modeCmd:
+			if input == "/pico" {
+				mode = modePico
+				rl.SetPrompt(chatPrompt)
+				fmt.Println("Switched to chat mode. Type /cmd to return to command mode.")
+				continue
+			}
+
+			if strings.HasPrefix(input, "/hipico") {
+				initialMsg := strings.TrimSpace(strings.TrimPrefix(input, "/hipico"))
+				if initialMsg == "" {
+					fmt.Println("Usage: /hipico <message>")
+					fmt.Println("Example: /hipico check the log files for error messages")
+					continue
+				}
+
+				mode = modeHiPico
+				rl.SetPrompt(hipicoPrompt)
+
+				contextPrefix := fmt.Sprintf("[Command mode context: working directory is %s]\n\n", cmdWorkingDir)
+
+				fmt.Printf("\n%s AI assistance started. Type /byepico to end.\n\n", logo)
+
+				ctx := context.Background()
+				response, err := agentLoop.ProcessDirect(ctx, contextPrefix+initialMsg, hipicoSessionKey)
+				if err != nil {
+					fmt.Printf("Error: %v\n", err)
+					mode = modeCmd
+					rl.SetPrompt(cmdPrompt)
+					continue
+				}
+				fmt.Printf("%s %s\n\n", logo, response)
+				continue
+			}
+
+			executeShellCommand(input)
+
+		case modeHiPico:
+			if input == "/byepico" {
+				mode = modeCmd
+				rl.SetPrompt(cmdPrompt)
+				fmt.Println("AI assistance ended. Back to command mode.")
+				continue
+			}
+
+			if input == "/pico" {
+				mode = modePico
+				rl.SetPrompt(chatPrompt)
+				fmt.Println("AI assistance ended. Switched to chat mode.")
+				continue
+			}
+
+			ctx := context.Background()
+			response, err := agentLoop.ProcessDirect(ctx, input, hipicoSessionKey)
+			if err != nil {
+				fmt.Printf("Error: %v\n", err)
+				continue
+			}
+			fmt.Printf("\n%s %s\n\n", logo, response)
+		}
 	}
 }
 
 func simpleInteractiveMode(agentLoop *agent.AgentLoop, sessionKey string) {
 	reader := bufio.NewReader(os.Stdin)
+	mode := modePico
+	hipicoSessionKey := "cli:hipico"
+
 	for {
-		fmt.Printf("%s You: ", logo)
+		switch mode {
+		case modePico:
+			fmt.Printf("%s You: ", logo)
+		case modeCmd:
+			fmt.Print("$ ")
+		case modeHiPico:
+			fmt.Printf("%s> ", logo)
+		}
+
 		line, err := reader.ReadString('\n')
 		if err != nil {
 			if err == io.EOF {
@@ -169,13 +277,169 @@ func simpleInteractiveMode(agentLoop *agent.AgentLoop, sessionKey string) {
 			return
 		}
 
-		ctx := context.Background()
-		response, err := agentLoop.ProcessDirect(ctx, input, sessionKey)
-		if err != nil {
-			fmt.Printf("Error: %v\n", err)
-			continue
-		}
+		switch mode {
+		case modePico:
+			if input == "/cmd" {
+				mode = modeCmd
+				fmt.Println("Switched to command mode. Type /pico to return to chat.")
+				continue
+			}
 
-		fmt.Printf("\n%s %s\n\n", logo, response)
+			ctx := context.Background()
+			response, err := agentLoop.ProcessDirect(ctx, input, sessionKey)
+			if err != nil {
+				fmt.Printf("Error: %v\n", err)
+				continue
+			}
+			fmt.Printf("\n%s %s\n\n", logo, response)
+
+		case modeCmd:
+			if input == "/pico" {
+				mode = modePico
+				fmt.Println("Switched to chat mode. Type /cmd to return to command mode.")
+				continue
+			}
+
+			if strings.HasPrefix(input, "/hipico") {
+				initialMsg := strings.TrimSpace(strings.TrimPrefix(input, "/hipico"))
+				if initialMsg == "" {
+					fmt.Println("Usage: /hipico <message>")
+					fmt.Println("Example: /hipico check the log files for error messages")
+					continue
+				}
+
+				mode = modeHiPico
+				contextPrefix := fmt.Sprintf("[Command mode context: working directory is %s]\n\n", cmdWorkingDir)
+				fmt.Printf("\n%s AI assistance started. Type /byepico to end.\n\n", logo)
+
+				ctx := context.Background()
+				response, err := agentLoop.ProcessDirect(ctx, contextPrefix+initialMsg, hipicoSessionKey)
+				if err != nil {
+					fmt.Printf("Error: %v\n", err)
+					mode = modeCmd
+					continue
+				}
+				fmt.Printf("%s %s\n\n", logo, response)
+				continue
+			}
+
+			executeShellCommand(input)
+
+		case modeHiPico:
+			if input == "/byepico" {
+				mode = modeCmd
+				fmt.Println("AI assistance ended. Back to command mode.")
+				continue
+			}
+
+			if input == "/pico" {
+				mode = modePico
+				fmt.Println("AI assistance ended. Switched to chat mode.")
+				continue
+			}
+
+			ctx := context.Background()
+			response, err := agentLoop.ProcessDirect(ctx, input, hipicoSessionKey)
+			if err != nil {
+				fmt.Printf("Error: %v\n", err)
+				continue
+			}
+			fmt.Printf("\n%s %s\n\n", logo, response)
+		}
 	}
 }
+
+// executeShellCommand runs a shell command in the current working directory
+// and prints the output. It also handles the cd command to change directories.
+func executeShellCommand(input string) {
+	// Handle cd command specially to update working directory
+	if strings.HasPrefix(input, "cd ") || input == "cd" {
+		handleCd(input)
+		return
+	}
+
+	var cmd *exec.Cmd
+	if runtime.GOOS == "windows" {
+		cmd = exec.Command("powershell", "-NoProfile", "-NonInteractive", "-Command", input)
+	} else {
+		cmd = exec.Command("sh", "-c", input)
+	}
+	cmd.Dir = cmdWorkingDir
+
+	var stdout, stderr bytes.Buffer
+	cmd.Stdout = &stdout
+	cmd.Stderr = &stderr
+
+	err := cmd.Run()
+
+	if stdout.Len() > 0 {
+		fmt.Print(stdout.String())
+		if !strings.HasSuffix(stdout.String(), "\n") {
+			fmt.Println()
+		}
+	}
+	if stderr.Len() > 0 {
+		fmt.Print(stderr.String())
+		if !strings.HasSuffix(stderr.String(), "\n") {
+			fmt.Println()
+		}
+	}
+
+	if err != nil {
+		if exitErr, ok := err.(*exec.ExitError); ok {
+			fmt.Printf("Exit code: %d\n", exitErr.ExitCode())
+		} else {
+			fmt.Printf("Error: %v\n", err)
+		}
+	}
+}
+
+// handleCd handles the cd command to change the working directory for command mode.
+func handleCd(input string) {
+	parts := strings.Fields(input)
+	var target string
+
+	if len(parts) < 2 {
+		home, err := os.UserHomeDir()
+		if err != nil {
+			fmt.Printf("Error: %v\n", err)
+			return
+		}
+		target = home
+	} else {
+		target = parts[1]
+	}
+
+	// Handle ~ expansion
+	if strings.HasPrefix(target, "~") {
+		home, err := os.UserHomeDir()
+		if err != nil {
+			fmt.Printf("Error: %v\n", err)
+			return
+		}
+		if target == "~" {
+			target = home
+		} else if len(target) > 1 && target[1] == '/' {
+			target = filepath.Join(home, target[2:])
+		}
+	}
+
+	// Handle relative paths
+	if !filepath.IsAbs(target) {
+		target = filepath.Join(cmdWorkingDir, target)
+	}
+
+	target = filepath.Clean(target)
+
+	info, err := os.Stat(target)
+	if err != nil {
+		fmt.Printf("cd: %v\n", err)
+		return
+	}
+	if !info.IsDir() {
+		fmt.Printf("cd: %s: Not a directory\n", target)
+		return
+	}
+
+	cmdWorkingDir = target
+}