diff --git a/Cargo.lock b/Cargo.lock
index 966b193d91af67774ed6802d65baf558b5efae9d..8c0f51e2893f53c3e6ef78dbd5ef711f8d9dc95c 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -7266,6 +7266,7 @@ name = "git_ui"
 version = "0.1.0"
 dependencies = [
  "agent_settings",
+ "alacritty_terminal",
  "anyhow",
  "askpass",
  "buffer_diff",
diff --git a/crates/git_ui/Cargo.toml b/crates/git_ui/Cargo.toml
index e06d16708697f721d9377365223dc444ba7b08ae..6927ae16a5c4aa50e5d91563dbb84b1f2e085fd0 100644
--- a/crates/git_ui/Cargo.toml
+++ b/crates/git_ui/Cargo.toml
@@ -17,6 +17,7 @@ test-support = ["multi_buffer/test-support", "remote_connection/test-support"]
 
 [dependencies]
 agent_settings.workspace = true
+alacritty_terminal.workspace = true
 anyhow.workspace = true
 askpass.workspace = true
 buffer_diff.workspace = true
diff --git a/crates/git_ui/src/git_panel.rs b/crates/git_ui/src/git_panel.rs
index 0cb8ec6b78929d216b700b6e21cbf43a538c6f56..a6f1e097cfe1cc0c012ff77987011571760b3ef0 100644
--- a/crates/git_ui/src/git_panel.rs
+++ b/crates/git_ui/src/git_panel.rs
@@ -11,6 +11,7 @@ use crate::{
     repository_selector::RepositorySelector,
 };
 use agent_settings::AgentSettings;
+use alacritty_terminal::vte::ansi;
 use anyhow::Context as _;
 use askpass::AskPassDelegate;
 use collections::{BTreeMap, HashMap, HashSet};
@@ -6407,7 +6408,13 @@ fn open_output(
     cx: &mut Context<Workspace>,
 ) {
     let operation = operation.into();
-    let buffer = cx.new(|cx| Buffer::local(output, cx));
+
+    let mut handler = GitOutputHandler::default();
+    let mut processor = ansi::Processor::<ansi::StdSyncHandler>::default();
+    processor.advance(&mut handler, output.as_bytes());
+    let plain_text = handler.output;
+
+    let buffer = cx.new(|cx| Buffer::local(plain_text.as_str(), cx));
     buffer.update(cx, |buffer, cx| {
         buffer.set_capability(language::Capability::ReadOnly, cx);
     });
@@ -6423,6 +6430,32 @@ fn open_output(
     workspace.add_item_to_center(Box::new(editor), window, cx);
 }
 
+#[derive(Default)]
+struct GitOutputHandler {
+    output: String,
+    line_start: usize,
+}
+
+impl ansi::Handler for GitOutputHandler {
+    fn input(&mut self, c: char) {
+        self.output.push(c);
+    }
+
+    fn linefeed(&mut self) {
+        self.output.push('\n');
+        self.line_start = self.output.len();
+    }
+
+    fn carriage_return(&mut self) {
+        self.output.truncate(self.line_start);
+    }
+
+    fn put_tab(&mut self, count: u16) {
+        self.output
+            .extend(std::iter::repeat_n('\t', count as usize));
+    }
+}
+
 pub(crate) fn show_error_toast(
     workspace: Entity<Workspace>,
     action: impl Into<SharedString>,
@@ -7863,6 +7896,25 @@ mod tests {
         assert_eq!(message, Some("Update tracked".to_string()));
     }
 
+    #[test]
+    fn test_git_output_handler_strips_ansi_codes() {
+        use alacritty_terminal::vte::ansi;
+
+        let cases = [
+            ("no escape codes here\n", "no escape codes here\n"),
+            ("\x1b[31mhello\x1b[0m", "hello"),
+            ("\x1b[1;32mfoo\x1b[0m bar", "foo bar"),
+            ("progress 10%\rprogress 100%\n", "progress 100%\n"),
+        ];
+
+        for (input, expected) in cases {
+            let mut handler = GitOutputHandler::default();
+            let mut processor = ansi::Processor::<ansi::StdSyncHandler>::default();
+            processor.advance(&mut handler, input.as_bytes());
+            assert_eq!(handler.output, expected);
+        }
+    }
+
     #[gpui::test]
     async fn test_dispatch_context_with_focus_states(cx: &mut TestAppContext) {
         init_test(cx);