diff --git a/lua/cp/ui/ansi.lua b/lua/cp/ui/ansi.lua
index facfd1f..8bc8581 100644
--- a/lua/cp/ui/ansi.lua
+++ b/lua/cp/ui/ansi.lua
@@ -12,13 +12,81 @@ local M = {}
 
 local logger = require('cp.log')
 
----@param raw_output string|table
+local dyn_hl_cache = {}
+
+---@param s string|table
 ---@return string
-function M.bytes_to_string(raw_output)
-  if type(raw_output) == 'string' then
-    return raw_output
+function M.bytes_to_string(s)
+  if type(s) == 'string' then
+    return s
   end
-  return table.concat(vim.tbl_map(string.char, raw_output))
+  return table.concat(vim.tbl_map(string.char, s))
+end
+
+---@param fg table|nil
+---@param bold boolean
+---@param italic boolean
+---@return string|nil
+local function ensure_hl_for(fg, bold, italic)
+  if not fg and not bold and not italic then
+    return nil
+  end
+
+  local base = 'CpAnsi'
+  local suffix
+  local opts = {}
+
+  if fg and fg.kind == 'named' then
+    suffix = fg.name
+  elseif fg and fg.kind == 'xterm' then
+    suffix = ('X%03d'):format(fg.idx)
+    local function xterm_to_hex(n)
+      if n >= 0 and n <= 15 then
+        local key = 'terminal_color_' .. n
+        return vim.g[key]
+      end
+      if n >= 16 and n <= 231 then
+        local c = n - 16
+        local r = math.floor(c / 36) % 6
+        local g = math.floor(c / 6) % 6
+        local b = c % 6
+        local function level(x)
+          return x == 0 and 0 or 55 + 40 * x
+        end
+        return ('#%02x%02x%02x'):format(level(r), level(g), level(b))
+      end
+      local l = 8 + 10 * (n - 232)
+      return ('#%02x%02x%02x'):format(l, l, l)
+    end
+    opts.fg = xterm_to_hex(fg.idx) or 'NONE'
+  elseif fg and fg.kind == 'rgb' then
+    suffix = ('Rgb%02x%02x%02x'):format(fg.r, fg.g, fg.b)
+    opts.fg = ('#%02x%02x%02x'):format(fg.r, fg.g, fg.b)
+  end
+
+  local parts = { base }
+  if bold then
+    table.insert(parts, 'Bold')
+  end
+  if italic then
+    table.insert(parts, 'Italic')
+  end
+  if suffix then
+    table.insert(parts, suffix)
+  end
+  local name = table.concat(parts)
+
+  if not dyn_hl_cache[name] then
+    if bold then
+      opts.bold = true
+    end
+    if italic then
+      opts.italic = true
+    end
+    vim.api.nvim_set_hl(0, name, opts)
+    dyn_hl_cache[name] = true
+  end
+  return name
 end
 
 ---@param text string
@@ -38,22 +106,7 @@ function M.parse_ansi_text(text)
   }
 
   local function get_highlight_group()
-    if not ansi_state.bold and not ansi_state.italic and not ansi_state.foreground then
-      return nil
-    end
-
-    local parts = { 'CpAnsi' }
-    if ansi_state.bold then
-      table.insert(parts, 'Bold')
-    end
-    if ansi_state.italic then
-      table.insert(parts, 'Italic')
-    end
-    if ansi_state.foreground then
-      table.insert(parts, ansi_state.foreground)
-    end
-
-    return table.concat(parts)
+    return ensure_hl_for(ansi_state.foreground, ansi_state.bold, ansi_state.italic)
   end
 
   local function apply_highlight(start_line, start_col, end_col)
@@ -137,6 +190,7 @@ end
 
 ---@param ansi_state table
 ---@param code_string string
+---@return nil
 function M.update_ansi_state(ansi_state, code_string)
   if code_string == '' or code_string == '0' then
     ansi_state.bold = false
@@ -146,40 +200,60 @@ function M.update_ansi_state(ansi_state, code_string)
   end
 
   local codes = vim.split(code_string, ';', { plain = true })
+  local idx = 1
+  while idx <= #codes do
+    local num = tonumber(codes[idx])
 
-  for _, code in ipairs(codes) do
-    local num = tonumber(code)
-    if num then
-      if num == 1 then
-        ansi_state.bold = true
-      elseif num == 3 then
-        ansi_state.italic = true
-      elseif num == 22 then
-        ansi_state.bold = false
-      elseif num == 23 then
-        ansi_state.italic = false
-      elseif num >= 30 and num <= 37 then
-        local colors = { 'Black', 'Red', 'Green', 'Yellow', 'Blue', 'Magenta', 'Cyan', 'White' }
-        ansi_state.foreground = colors[num - 29]
-      elseif num >= 90 and num <= 97 then
-        local colors = {
-          'BrightBlack',
-          'BrightRed',
-          'BrightGreen',
-          'BrightYellow',
-          'BrightBlue',
-          'BrightMagenta',
-          'BrightCyan',
-          'BrightWhite',
-        }
-        ansi_state.foreground = colors[num - 89]
-      elseif num == 39 then
-        ansi_state.foreground = nil
+    if num == 1 then
+      ansi_state.bold = true
+    elseif num == 3 then
+      ansi_state.italic = true
+    elseif num == 22 then
+      ansi_state.bold = false
+    elseif num == 23 then
+      ansi_state.italic = false
+    elseif num and num >= 30 and num <= 37 then
+      local colors = { 'Black', 'Red', 'Green', 'Yellow', 'Blue', 'Magenta', 'Cyan', 'White' }
+      ansi_state.foreground = { kind = 'named', name = colors[num - 29] }
+    elseif num and num >= 90 and num <= 97 then
+      local colors = {
+        'BrightBlack',
+        'BrightRed',
+        'BrightGreen',
+        'BrightYellow',
+        'BrightBlue',
+        'BrightMagenta',
+        'BrightCyan',
+        'BrightWhite',
+      }
+      ansi_state.foreground = { kind = 'named', name = colors[num - 89] }
+    elseif num == 39 then
+      ansi_state.foreground = nil
+    elseif num == 38 or num == 48 then
+      local is_fg = (num == 38)
+      local mode = tonumber(codes[idx + 1] or '')
+      if mode == 5 and codes[idx + 2] then
+        local pal = tonumber(codes[idx + 2]) or 0
+        if is_fg then
+          ansi_state.foreground = { kind = 'xterm', idx = pal }
+        end
+        idx = idx + 2
+      elseif mode == 2 and codes[idx + 2] and codes[idx + 3] and codes[idx + 4] then
+        local r = tonumber(codes[idx + 2]) or 0
+        local g = tonumber(codes[idx + 3]) or 0
+        local b = tonumber(codes[idx + 4]) or 0
+        if is_fg then
+          ansi_state.foreground = { kind = 'rgb', r = r, g = g, b = b }
+        end
+        idx = idx + 4
       end
     end
+
+    idx = idx + 1
   end
 end
 
+---@return nil
 function M.setup_highlight_groups()
   local color_map = {
     Black = vim.g.terminal_color_0,
@@ -202,7 +276,7 @@ function M.setup_highlight_groups()
 
   if vim.tbl_count(color_map) < 16 then
     logger.log(
-      'ansi terminal colors (vim.g.terminal_color_*) not configured. ANSI colors will not display properly. ',
+      'ansi terminal colors (vim.g.terminal_color_*) not configured. ANSI colors will not display properly.',
       vim.log.levels.WARN
     )
   end
@@ -218,7 +292,6 @@ function M.setup_highlight_groups()
     for color_name, terminal_color in pairs(color_map) do
       local parts = { 'CpAnsi' }
       local opts = { fg = terminal_color or 'NONE' }
-
       if combo.bold then
         table.insert(parts, 'Bold')
         opts.bold = true
@@ -228,7 +301,6 @@ function M.setup_highlight_groups()
         opts.italic = true
       end
       table.insert(parts, color_name)
-
       local hl_name = table.concat(parts)
       vim.api.nvim_set_hl(0, hl_name, opts)
     end
@@ -239,4 +311,30 @@ function M.setup_highlight_groups()
   vim.api.nvim_set_hl(0, 'CpAnsiBoldItalic', { bold = true, italic = true })
 end
 
+---@param text string
+---@return string[]
+function M.debug_ansi_tokens(text)
+  local out = {}
+  local i = 1
+  while true do
+    local s, e, codes, cmd = text:find('\027%[([%d;]*)([a-zA-Z])', i)
+    if not s then
+      break
+    end
+    table.insert(out, ('ESC[%s%s'):format(codes, cmd))
+    i = e + 1
+  end
+  return out
+end
+
+---@param s string
+---@return string
+function M.hex_dump(s)
+  local t = {}
+  for i = 1, #s do
+    t[#t + 1] = ('%02X'):format(s:byte(i))
+  end
+  return table.concat(t, ' ')
+end
+
 return M