diff --git a/src/cli/stdin-reader.ts b/src/cli/stdin-reader.ts
index 04173de8..83090034 100644
--- a/src/cli/stdin-reader.ts
+++ b/src/cli/stdin-reader.ts
@@ -1,12 +1,11 @@
-// Stdin reading utility extracted from hook patterns
-// See src/hooks/save-hook.ts for the original pattern
-
-// Inactivity timeout for stdin reading - if no data arrives within this time,
-// we parse whatever data we have. This fixes issue #727 where hooks hang at "1/2 done"
-// because stdin.on('end') never fires.
-// Using inactivity timeout (reset on each data chunk) instead of absolute timeout
-// to avoid truncating large/slow payloads.
-const STDIN_INACTIVITY_TIMEOUT_MS = 5000;
+// Stdin reading utility for Claude Code hooks
+//
+// Problem: Claude Code doesn't close stdin after writing hook input,
+// so stdin.on('end') never fires and hooks hang indefinitely (#727).
+//
+// Solution: JSON is self-delimiting. We detect complete JSON by attempting
+// to parse after each chunk. Once we have valid JSON, we resolve immediately
+// without waiting for EOF. This is the proper fix, not a timeout workaround.
 
 /**
  * Check if stdin is available and readable.
@@ -17,8 +16,6 @@ const STDIN_INACTIVITY_TIMEOUT_MS = 5000;
  */
 function isStdinAvailable(): boolean {
   try {
-    // Accessing stdin properties can trigger Bun's lazy fstat() call
-    // which crashes if the fd is invalid
     const stdin = process.stdin;
 
     // If stdin is a TTY, we're running interactively (not from Claude Code hook)
@@ -39,6 +36,33 @@ function isStdinAvailable(): boolean {
   }
 }
 
+/**
+ * Try to parse the accumulated input as JSON.
+ * Returns the parsed value if successful, undefined if incomplete/invalid.
+ */
+function tryParseJson(input: string): { success: true; value: unknown } | { success: false } {
+  const trimmed = input.trim();
+  if (!trimmed) {
+    return { success: false };
+  }
+
+  try {
+    const value = JSON.parse(trimmed);
+    return { success: true, value };
+  } catch {
+    // JSON is incomplete or invalid
+    return { success: false };
+  }
+}
+
+// Safety timeout - only kicks in if JSON never completes (malformed input).
+// This should rarely/never be hit in normal operation since we detect complete JSON.
+const SAFETY_TIMEOUT_MS = 30000;
+
+// Short delay after last data chunk to try parsing
+// This handles the case where JSON arrives in multiple chunks
+const PARSE_DELAY_MS = 50;
+
 export async function readJsonFromStdin(): Promise<unknown> {
   // First, check if stdin is even available
   // This catches the Bun EINVAL crash from issue #646
@@ -49,7 +73,7 @@ export async function readJsonFromStdin(): Promise<unknown> {
   return new Promise((resolve, reject) => {
     let input = '';
     let resolved = false;
-    let timeoutId: ReturnType<typeof setTimeout>;
+    let parseDelayId: ReturnType<typeof setTimeout> | null = null;
 
     const cleanup = () => {
       try {
@@ -61,55 +85,92 @@ export async function readJsonFromStdin(): Promise<unknown> {
       }
     };
 
-    const resolveWithData = () => {
+    const resolveWith = (value: unknown) => {
       if (resolved) return;
       resolved = true;
-      clearTimeout(timeoutId);
+      if (parseDelayId) clearTimeout(parseDelayId);
+      clearTimeout(safetyTimeoutId);
       cleanup();
-      try {
-        resolve(input.trim() ? JSON.parse(input) : undefined);
-      } catch (e) {
-        reject(new Error(`Failed to parse hook input: ${e}`));
+      resolve(value);
+    };
+
+    const rejectWith = (error: Error) => {
+      if (resolved) return;
+      resolved = true;
+      if (parseDelayId) clearTimeout(parseDelayId);
+      clearTimeout(safetyTimeoutId);
+      cleanup();
+      reject(error);
+    };
+
+    const tryResolveWithJson = () => {
+      const result = tryParseJson(input);
+      if (result.success) {
+        resolveWith(result.value);
+        return true;
       }
+      return false;
     };
 
-    // Reset the inactivity timeout - called on each data chunk
-    const resetTimeout = () => {
-      clearTimeout(timeoutId);
-      timeoutId = setTimeout(() => {
-        if (!resolved) {
-          resolveWithData();
+    // Safety timeout - fallback if JSON never completes
+    const safetyTimeoutId = setTimeout(() => {
+      if (!resolved) {
+        // Try one final parse attempt
+        if (!tryResolveWithJson()) {
+          // If we have data but it's not valid JSON, that's an error
+          if (input.trim()) {
+            rejectWith(new Error(`Incomplete JSON after ${SAFETY_TIMEOUT_MS}ms: ${input.slice(0, 100)}...`));
+          } else {
+            // No data received - resolve with undefined
+            resolveWith(undefined);
+          }
         }
-      }, STDIN_INACTIVITY_TIMEOUT_MS);
-    };
-
-    // Start initial timeout
-    resetTimeout();
+      }
+    }, SAFETY_TIMEOUT_MS);
 
     try {
       process.stdin.on('data', (chunk) => {
         input += chunk;
-        // Reset timeout on each data chunk to avoid truncating large/slow payloads
-        resetTimeout();
+
+        // Clear any pending parse delay
+        if (parseDelayId) {
+          clearTimeout(parseDelayId);
+          parseDelayId = null;
+        }
+
+        // Try to parse immediately - if JSON is complete, resolve now
+        if (tryResolveWithJson()) {
+          return;
+        }
+
+        // If immediate parse failed, set a short delay and try again
+        // This handles multi-chunk delivery where the last chunk completes the JSON
+        parseDelayId = setTimeout(() => {
+          tryResolveWithJson();
+        }, PARSE_DELAY_MS);
       });
 
       process.stdin.on('end', () => {
-        resolveWithData();
+        // stdin closed - parse whatever we have
+        if (!resolved) {
+          if (!tryResolveWithJson()) {
+            // Empty or invalid - resolve with undefined
+            resolveWith(input.trim() ? undefined : undefined);
+          }
+        }
       });
 
       process.stdin.on('error', () => {
-        if (resolved) return;
-        resolved = true;
-        clearTimeout(timeoutId);
-        cleanup();
-        // Don't reject on stdin errors - just return undefined
-        // This is more graceful for hook execution
-        resolve(undefined);
+        if (!resolved) {
+          // Don't reject on stdin errors - just return undefined
+          // This is more graceful for hook execution
+          resolveWith(undefined);
+        }
       });
     } catch {
       // If attaching listeners fails (Bun stdin issue), resolve with undefined
       resolved = true;
-      clearTimeout(timeoutId);
+      clearTimeout(safetyTimeoutId);
       cleanup();
       resolve(undefined);
     }