diff --git a/.changeset/fn-7712-grok-model-parse.md b/.changeset/fn-7712-grok-model-parse.md
new file mode 100644
index 0000000000..9d012a240c
--- /dev/null
+++ b/.changeset/fn-7712-grok-model-parse.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": patch
+---
+
+summary: Fix Grok CLI model picker showing prompt text instead of real model names.
+category: fix
+dev: Rewrote parseModelLines in fusion-plugin-grok-runtime/process-manager.ts to strip the login/"Default model:"/"Available models:" preamble and `*`/`-` bullet markers plus the `(default)` annotation from verified `grok models` output; legacy `id - Label`, columnar, and JSON paths preserved.
diff --git a/plugins/fusion-plugin-grok-runtime/src/__tests__/process-manager.test.ts b/plugins/fusion-plugin-grok-runtime/src/__tests__/process-manager.test.ts
index 4ac8c7298e..82f4868d8e 100644
--- a/plugins/fusion-plugin-grok-runtime/src/__tests__/process-manager.test.ts
+++ b/plugins/fusion-plugin-grok-runtime/src/__tests__/process-manager.test.ts
@@ -16,6 +16,20 @@ const DASH_MODELS_OUTPUT = [
 
 const COLUMN_MODELS_OUTPUT = ["grok-4       $5.00/M in", "grok-4-fast  $0.20/M in"].join("\n");
 
+// FN-7712: verified real `grok models` output shape (attachment 1871.png) —
+// login/session preamble, "Default model:" line, "Available models:" header,
+// then a bulleted list with `* <id> (default)` for the active model and
+// `- <id>` for the rest.
+const REAL_BULLETED_OUTPUT = [
+  "You are logged in with grok-cli v1.2.3",
+  "Default model: grok-4.5",
+  "Available models:",
+  "* grok-4.5 (default)",
+  "- grok-composer-2.5-fast",
+  "- grok-4-fast-reasoning",
+  "- grok-3-mini",
+].join("\n");
+
 describe("discoverGrokModels", () => {
   beforeEach(() => {
     vi.clearAllMocks();
@@ -39,6 +53,31 @@ describe("discoverGrokModels", () => {
     expect(result.fallbackUsed).toBe(false);
   });
 
+  it("extracts clean model ids from the verified real bulleted output, dropping preamble and markers", async () => {
+    vi.mocked(runGrokCommand).mockResolvedValueOnce({ code: 0, stdout: REAL_BULLETED_OUTPUT, stderr: "" });
+    const result = await discoverGrokModels("grok");
+
+    expect(result.models).toEqual(["grok-4.5", "grok-composer-2.5-fast", "grok-4-fast-reasoning", "grok-3-mini"]);
+    expect(result.source).toBe("models-text");
+    expect(result.fallbackUsed).toBe(false);
+    for (const model of result.models) {
+      expect(model).not.toMatch(/^[*-]/);
+      expect(model).not.toMatch(/\(default\)/i);
+    }
+    expect(result.models.some((m) => /logged in|default model|available models/i.test(m))).toBe(false);
+  });
+
+  it("strips the ` (default)` suffix marker from a bulleted default-model line", async () => {
+    vi.mocked(runGrokCommand).mockResolvedValueOnce({
+      code: 0,
+      stdout: ["Available models:", "* grok-4.5 (default)"].join("\n"),
+      stderr: "",
+    });
+    const result = await discoverGrokModels("grok");
+
+    expect(result.models).toEqual(["grok-4.5"]);
+  });
+
   it("extracts bare ids from columnar/pricing-separated output", async () => {
     vi.mocked(runGrokCommand).mockResolvedValueOnce({ code: 0, stdout: COLUMN_MODELS_OUTPUT, stderr: "" });
     const result = await discoverGrokModels("grok");
diff --git a/plugins/fusion-plugin-grok-runtime/src/process-manager.ts b/plugins/fusion-plugin-grok-runtime/src/process-manager.ts
index fe6b681552..923d11e36d 100644
--- a/plugins/fusion-plugin-grok-runtime/src/process-manager.ts
+++ b/plugins/fusion-plugin-grok-runtime/src/process-manager.ts
@@ -1,28 +1,38 @@
 import { runGrokCommand } from "./cli-spawn.js";
 
 /*
-FNXC:GrokCli 2026-07-08-00:00:
-FN-7705: the exact `grok models` output line shape is
-`upstream-pending-verification` — the upstream README documents the command
-lists available Grok models "with pricing hints" but does not pin an exact
-column/separator format. We parse CONSERVATIVELY: strip obvious header/tip/
-empty-state lines, then take the leading token before a ` - ` label
-separator (mirroring the Cursor CLI's `<id> - <Label>` shape) or, absent
-that, before the first run of 2+ spaces (a common columnar pricing-hint
-layout), falling back to the whole trimmed line as a single-token id.
-Defensive JSON-tolerant parsing is attempted first (mirroring Cursor's
-process-manager.ts), even though the real CLI is not known to emit JSON.
+FNXC:GrokCli 2026-07-08-19:30:
+FN-7712: the `grok models` output shape is now VERIFIED from a real capture
+(attachment 1871.png in FN-7712): the CLI prints a login/session preamble
+("You are logged in with grok..."), a "Default model: <id>" line, an
+"Available models:" header, then a bulleted list — `* <id> (default)` for
+the active model and `- <id>` for the rest. We drop the preamble/header
+lines (case-insensitively, tolerating a trailing colon and leading/trailing
+whitespace), strip a leading `* `/`- ` bullet marker from each remaining
+candidate line, then strip a trailing ` (default)`/`(default)` annotation
+before id extraction so the picker only ever sees bare model ids. Legacy
+extraction (leading token before a ` - ` label separator, else before the
+first run of 2+ spaces for columnar/pricing layouts, else the whole trimmed
+token) is preserved unchanged so older `id - Label (pricing)` and columnar
+fixtures still parse. Defensive JSON-tolerant parsing is attempted first
+(mirroring Cursor's process-manager.ts), even though the real CLI is not
+known to emit JSON.
 */
 function parseModelLines(raw: string): string[] {
   const ids = raw
     .split(/\r?\n/)
     .map((line) => line.trim())
     .filter(Boolean)
-    .filter((line) => !/^available models$/i.test(line))
+    .filter((line) => !/^available models:?$/i.test(line))
+    .filter((line) => !/^you are logged in\b/i.test(line))
+    .filter((line) => !/^default model:?/i.test(line))
     .filter((line) => !/^models?:?$/i.test(line))
     .filter((line) => !/^no models? available/i.test(line))
     .filter((line) => !/^tip:/i.test(line))
     .filter((line) => !/^usage/i.test(line))
+    .map((line) => line.replace(/^[*-]\s+/, ""))
+    .map((line) => line.replace(/\s*\(default\)\s*$/i, ""))
+    .map((line) => line.trim())
     .map((line) => {
       const dashIndex = line.indexOf(" - ");
       if (dashIndex !== -1) return line.slice(0, dashIndex).trim();