diff --git a/.changeset/fn-8346-live-tail-scroll-follow.md b/.changeset/fn-8346-live-tail-scroll-follow.md
new file mode 100644
index 0000000000..25be75cefd
--- /dev/null
+++ b/.changeset/fn-8346-live-tail-scroll-follow.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": patch
+---
+
+summary: Preserve manual scrolling in System Controls and Dev Server live logs.
+category: fix
+dev: Applies the shared pinned-bottom follow invariant to streamed output tails.
diff --git a/packages/dashboard/app/components/DevServerLogViewer.tsx b/packages/dashboard/app/components/DevServerLogViewer.tsx
index 3e4e01e741..ac19c472cd 100644
--- a/packages/dashboard/app/components/DevServerLogViewer.tsx
+++ b/packages/dashboard/app/components/DevServerLogViewer.tsx
@@ -21,6 +21,11 @@ type LogSeverityFilter = "all" | LogSeverity;
 
 // eslint-disable-next-line no-control-regex -- ANSI escape stripping is required for readable terminal logs.
 const ANSI_ESCAPE_PATTERN = /\x1b\[[0-9;]*m/g;
+const BOTTOM_FOLLOW_THRESHOLD_PX = 50;
+
+function isNearBottom(container: HTMLElement): boolean {
+  return container.scrollHeight - (container.scrollTop + container.clientHeight) <= BOTTOM_FOLLOW_THRESHOLD_PX;
+}
 
 function stripAnsi(value: string): string {
   return value.replace(ANSI_ESCAPE_PATTERN, "");
@@ -100,6 +105,7 @@ export function DevServerLogViewer({
   const prevRunningRef = useRef(isRunning);
   const [isFullscreen, setIsFullscreen] = useState(false);
   const [isUserScrolling, setIsUserScrolling] = useState(false);
+  const isUserScrollingRef = useRef(false);
   const [searchQuery, setSearchQuery] = useState("");
   const [severityFilter, setSeverityFilter] = useState<LogSeverityFilter>("all");
 
@@ -122,6 +128,11 @@ export function DevServerLogViewer({
 
   const matchCount = filteredEntries.length;
 
+  const setManualScrollState = useCallback((isManualScrolling: boolean) => {
+    isUserScrollingRef.current = isManualScrolling;
+    setIsUserScrolling(isManualScrolling);
+  }, []);
+
   const scrollToBottom = useCallback(() => {
     const container = containerRef.current;
     if (!container) {
@@ -129,8 +140,8 @@ export function DevServerLogViewer({
     }
 
     container.scrollTop = container.scrollHeight;
-    setIsUserScrolling(false);
-  }, []);
+    setManualScrollState(false);
+  }, [setManualScrollState]);
 
   useEffect(() => {
     const previousRunning = prevRunningRef.current;
@@ -151,10 +162,8 @@ export function DevServerLogViewer({
       return;
     }
 
-    const threshold = 50;
-    const atBottom = container.scrollTop + container.clientHeight >= container.scrollHeight - threshold;
-    setIsUserScrolling(!atBottom);
-  }, []);
+    setManualScrollState(!isNearBottom(container));
+  }, [setManualScrollState]);
 
   useEffect(() => {
     if (loading || entries.length === 0) {
@@ -167,6 +176,28 @@ export function DevServerLogViewer({
     }
   }, [entries, isRunning, isUserScrolling, loading, scrollToBottom]);
 
+  /*
+  FNXC:DevServer 2026-07-18-16:16:
+  FN-8346 extends FN-8339's pinned-bottom invariant to in-place dev-server
+  transcript growth. MutationObserver watches the growing log content rather
+  than the fixed viewport; its synchronous ref guard preserves a manual
+  scroll-up even when streamed text changes without increasing entry count.
+  */
+  useEffect(() => {
+    const container = containerRef.current;
+    if (!container || !isRunning || typeof MutationObserver === "undefined") {
+      return;
+    }
+
+    const observer = new MutationObserver(() => {
+      if (!isUserScrollingRef.current) {
+        scrollToBottom();
+      }
+    });
+    observer.observe(container, { childList: true, characterData: true, subtree: true });
+    return () => observer.disconnect();
+  }, [isRunning, scrollToBottom]);
+
   if (loading && entries.length === 0) {
     return (
       <section className="devserver-log-viewer" data-testid="devserver-log-viewer">
diff --git a/packages/dashboard/app/components/__tests__/DevServerLogViewer.test.tsx b/packages/dashboard/app/components/__tests__/DevServerLogViewer.test.tsx
index 00de1204ba..016fd86543 100644
--- a/packages/dashboard/app/components/__tests__/DevServerLogViewer.test.tsx
+++ b/packages/dashboard/app/components/__tests__/DevServerLogViewer.test.tsx
@@ -183,6 +183,26 @@ describe("DevServerLogViewer", () => {
     expect(container).not.toHaveClass("devserver-log-viewer--fullscreen");
   });
 
+  function installScrollGeometry(element: HTMLElement, scrollHeight = 500, clientHeight = 100) {
+    let scrollTop = 0;
+    Object.defineProperties(element, {
+      scrollHeight: { configurable: true, get: () => scrollHeight },
+      clientHeight: { configurable: true, get: () => clientHeight },
+      scrollTop: {
+        configurable: true,
+        get: () => scrollTop,
+        set: (value: number) => {
+          scrollTop = value;
+        },
+      },
+    });
+    return {
+      get scrollTop() { return scrollTop; },
+      set scrollTop(value: number) { scrollTop = value; },
+      setScrollHeight(value: number) { scrollHeight = value; },
+    };
+  }
+
   it("auto-scrolls when new entries arrive while running", async () => {
     const { rerender } = renderViewer({
       entries: [createEntry({ id: 1, text: "line 1" })],
@@ -230,4 +250,31 @@ describe("DevServerLogViewer", () => {
       expect(scrollTopSetter).toHaveBeenCalled();
     });
   });
+
+  it("follows in-place stream growth only while pinned, and jump-to-latest re-pins", async () => {
+    const entries = [createEntry({ id: 1, text: "streaming" })];
+    const { rerender } = renderViewer({ entries, isRunning: true, total: 1 });
+    const content = screen.getByTestId("devserver-log-content");
+    const geometry = installScrollGeometry(content);
+
+    geometry.scrollTop = 100;
+    fireEvent.scroll(content);
+    geometry.setScrollHeight(600);
+    entries[0].text = "streaming more";
+    rerender(
+      <DevServerLogViewer entries={entries} loading={false} loadingMore={false} hasMore={false} total={1} onLoadMore={vi.fn()} isRunning />,
+    );
+    await waitFor(() => expect(geometry.scrollTop).toBe(100));
+    expect(screen.getByTestId("devserver-log-jump-button")).toBeInTheDocument();
+
+    fireEvent.click(screen.getByTestId("devserver-log-jump-button"));
+    expect(geometry.scrollTop).toBe(600);
+
+    geometry.setScrollHeight(700);
+    entries[0].text = "streaming even more";
+    rerender(
+      <DevServerLogViewer entries={entries} loading={false} loadingMore={false} hasMore={false} total={1} onLoadMore={vi.fn()} isRunning />,
+    );
+    await waitFor(() => expect(geometry.scrollTop).toBe(700));
+  });
 });
diff --git a/packages/dashboard/app/components/command-center/__tests__/SystemControlsArea.test.tsx b/packages/dashboard/app/components/command-center/__tests__/SystemControlsArea.test.tsx
index ec9d3199e7..853fab44eb 100644
--- a/packages/dashboard/app/components/command-center/__tests__/SystemControlsArea.test.tsx
+++ b/packages/dashboard/app/components/command-center/__tests__/SystemControlsArea.test.tsx
@@ -1,7 +1,7 @@
 import { readFileSync } from "node:fs";
 import { join } from "node:path";
 import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
-import { fireEvent, render, screen, waitFor, within } from "@testing-library/react";
+import { act, fireEvent, render, screen, waitFor, within } from "@testing-library/react";
 import "@testing-library/jest-dom";
 import { CommandCenter } from "../CommandCenter";
 import { BUG_URL_MAX_ENCODED } from "../areas/SystemControlsArea";
@@ -14,6 +14,7 @@ const mockFetchSystemLogs = vi.fn();
 const mockFetchNodeSystemStats = vi.fn();
 const mockFetchGlobalSettings = vi.fn();
 const mockFetchNodes = vi.fn();
+const subscribeSseMock = vi.fn(() => () => undefined);
 
 vi.mock("../../../api/legacy", () => ({
   fetchCodebaseMetrics: vi.fn().mockResolvedValue({ tokenEstimate: 0, sourceFileCount: 0, sourceByteCount: 0, diskBytes: 0, diskFileCount: 0, method: "local", truncated: false }),
@@ -66,7 +67,7 @@ vi.mock("../../../api", () => ({
 }));
 
 vi.mock("../../../sse-bus", () => ({
-  subscribeSse: vi.fn(() => () => undefined),
+  subscribeSse: (...args: unknown[]) => subscribeSseMock(...args),
 }));
 
 vi.mock("../../../hooks/useAppSettings", () => ({
@@ -170,6 +171,7 @@ describe("SystemControlsArea layout integration", () => {
 
   beforeEach(() => {
     vi.clearAllMocks();
+    subscribeSseMock.mockImplementation(() => () => undefined);
     apiMock.mockImplementation((path: string) => Promise.resolve(emptyOverviewResponse(path)));
     mockFetchSystemInfo.mockResolvedValue(systemInfoFixture());
     mockFetchSystemLogs.mockResolvedValue({
@@ -417,6 +419,81 @@ describe("SystemControlsArea layout integration", () => {
     Element.prototype.scrollIntoView = original;
   });
 
+  function installScrollGeometry(element: HTMLElement, scrollHeight = 500, clientHeight = 100) {
+    let scrollTop = 0;
+    Object.defineProperties(element, {
+      scrollHeight: { configurable: true, get: () => scrollHeight },
+      clientHeight: { configurable: true, get: () => clientHeight },
+      scrollTop: {
+        configurable: true,
+        get: () => scrollTop,
+        set: (value: number) => {
+          scrollTop = value;
+        },
+      },
+    });
+    return {
+      get scrollTop() { return scrollTop; },
+      set scrollTop(value: number) { scrollTop = value; },
+      setScrollHeight(value: number) { scrollHeight = value; },
+    };
+  }
+
+  function getStreamEvents(path: string) {
+    const call = [...subscribeSseMock.mock.calls].reverse().find(([url]) => url === path);
+    expect(call).toBeDefined();
+    return (call?.[1] as { events: Record<string, (event: MessageEvent) => void> }).events;
+  }
+
+  it("keeps manually scrolled rebuild output in place while SSE lines grow", async () => {
+    render(<CommandCenter projectId="proj-1" />);
+    fireEvent.click(screen.getByTestId("command-center-tab-system"));
+    const rebuild = await screen.findByTestId("cc-syscontrol-rebuild-app");
+    fireEvent.click(within(rebuild).getByRole("button", { name: "Rebuild" }));
+    const output = (await screen.findByTestId("cc-system-rebuild-output")).querySelector("pre")!;
+    const geometry = installScrollGeometry(output);
+    const events = getStreamEvents("/api/system/jobs/job-1/stream");
+
+    await act(async () => events.line(new MessageEvent("message", { data: JSON.stringify({ i: 1, stream: "stdout", text: "first" }) })));
+    geometry.scrollTop = 100;
+    fireEvent.scroll(output);
+    geometry.setScrollHeight(600);
+    await act(async () => events.line(new MessageEvent("message", { data: JSON.stringify({ i: 2, stream: "stdout", text: "second" }) })));
+
+    expect(geometry.scrollTop).toBe(100);
+
+    geometry.scrollTop = 500;
+    fireEvent.scroll(output);
+    geometry.setScrollHeight(700);
+    await act(async () => events.line(new MessageEvent("message", { data: JSON.stringify({ i: 3, stream: "stdout", text: "third" }) })));
+    expect(geometry.scrollTop).toBe(700);
+  });
+
+  it("keeps manually scrolled live server logs in place while SSE lines grow", async () => {
+    render(<CommandCenter projectId="proj-1" />);
+    fireEvent.click(screen.getByTestId("command-center-tab-system"));
+    await screen.findByTestId("cc-system-controls");
+    fireEvent.click(screen.getByTestId("cc-system-logs-toggle"));
+    const output = await screen.findByText("No log entries yet.");
+    const container = output.parentElement!;
+    const geometry = installScrollGeometry(container);
+    const events = getStreamEvents("/api/system/logs/stream");
+
+    await act(async () => events.log(new MessageEvent("message", { data: JSON.stringify({ timestamp: "2026-07-18T00:00:00.000Z", level: "info", message: "first" }) })));
+    geometry.scrollTop = 100;
+    fireEvent.scroll(container);
+    geometry.setScrollHeight(600);
+    await act(async () => events.log(new MessageEvent("message", { data: JSON.stringify({ timestamp: "2026-07-18T00:00:01.000Z", level: "info", message: "second" }) })));
+
+    expect(geometry.scrollTop).toBe(100);
+
+    geometry.scrollTop = 500;
+    fireEvent.scroll(container);
+    geometry.setScrollHeight(700);
+    await act(async () => events.log(new MessageEvent("message", { data: JSON.stringify({ timestamp: "2026-07-18T00:00:02.000Z", level: "info", message: "third" }) })));
+    expect(geometry.scrollTop).toBe(700);
+  });
+
   it("hides build-and-link-local when the host is not a source checkout", async () => {
     mockFetchSystemInfo.mockResolvedValue(
       systemInfoFixture({
diff --git a/packages/dashboard/app/components/command-center/areas/SystemControlsArea.tsx b/packages/dashboard/app/components/command-center/areas/SystemControlsArea.tsx
index 4940f26c54..aa983012c5 100644
--- a/packages/dashboard/app/components/command-center/areas/SystemControlsArea.tsx
+++ b/packages/dashboard/app/components/command-center/areas/SystemControlsArea.tsx
@@ -77,6 +77,11 @@ export const BUG_URL_MAX_ENCODED = 8000;
 const BUG_URL_TRUNCATION_MARKER = "\n…(truncated)";
 const BUG_URL_BODY_QUERY_PREFIX = "?body=";
 const GITHUB_NEW_ISSUE_URL = "https://github.com/Runfusion/Fusion/issues/new";
+const BOTTOM_FOLLOW_THRESHOLD_PX = 50;
+
+function isNearBottom(container: HTMLElement): boolean {
+  return container.scrollHeight - (container.scrollTop + container.clientHeight) <= BOTTOM_FOLLOW_THRESHOLD_PX;
+}
 
 function buildBugReportIssueUrl(body: string): string {
   const prefix = `${GITHUB_NEW_ISSUE_URL}${BUG_URL_BODY_QUERY_PREFIX}`;
@@ -127,6 +132,7 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
   const [job, setJob] = useState<SystemRebuildJobSnapshot | null>(null);
   const [jobLines, setJobLines] = useState<SystemRebuildJobLine[]>([]);
   const jobOutputRef = useRef<HTMLPreElement | null>(null);
+  const jobFollowingRef = useRef(true);
   const jobSectionRef = useRef<HTMLDivElement | null>(null);
 
   const [restartPhase, setRestartPhase] = useState<RestartPhase>(null);
@@ -135,9 +141,28 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
   const [logsOpen, setLogsOpen] = useState(false);
   const [logEntries, setLogEntries] = useState<SystemLogEntryDto[]>([]);
   const logOutputRef = useRef<HTMLDivElement | null>(null);
+  const logFollowingRef = useRef(true);
 
   const [updateCheckResult, setUpdateCheckResult] = useState<UpdateCheckResponse | null>(null);
 
+  /*
+  FNXC:SystemPanel 2026-07-18-16:12:
+  FN-8346 mirrors FN-8339's pinned-bottom contract for independently streamed
+  System Controls tails. A tail may follow growth only while its reader remains
+  within the bottom threshold; an onScroll geometry check synchronously unsnaps
+  it so SSE updates never override a manual scroll-up. Starting a new stream
+  resets its pin, preserving the initial/latest-output anchor.
+  */
+  const updateJobFollowState = useCallback(() => {
+    const output = jobOutputRef.current;
+    if (output) jobFollowingRef.current = isNearBottom(output);
+  }, []);
+
+  const updateLogFollowState = useCallback(() => {
+    const output = logOutputRef.current;
+    if (output) logFollowingRef.current = isNearBottom(output);
+  }, []);
+
   const loadInfo = useCallback(async () => {
     try {
       const next = await fetchSystemInfo();
@@ -149,6 +174,7 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
           // Adopting a different (resumed) job — clear stale lines so the new
           // job's stream doesn't render mixed with the previous job's output.
           setJobLines([]);
+          jobFollowingRef.current = true;
           return next.activeRebuild;
         });
       }
@@ -227,8 +253,10 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
   }, [job?.id, job?.status, info?.pid, t, toast]);
 
   useEffect(() => {
-    const el = jobOutputRef.current;
-    if (el) el.scrollTop = el.scrollHeight;
+    const output = jobOutputRef.current;
+    if (output && jobFollowingRef.current) {
+      output.scrollTop = output.scrollHeight;
+    }
   }, [jobLines]);
 
   // ── Restart wait loop: server is back when /system/info answers with a new PID ──
@@ -273,6 +301,7 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
   // a reconnect's replay overwrites rather than appends past the cap boundary.
   useEffect(() => {
     if (!logsOpen || !info?.logsSupported) return;
+    logFollowingRef.current = true;
     setLogEntries([]);
     const unsubscribe = subscribeSse("/api/system/logs/stream", {
       events: {
@@ -294,8 +323,10 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
   }, [logsOpen, info?.logsSupported]);
 
   useEffect(() => {
-    const el = logOutputRef.current;
-    if (el) el.scrollTop = el.scrollHeight;
+    const output = logOutputRef.current;
+    if (output && logFollowingRef.current) {
+      output.scrollTop = output.scrollHeight;
+    }
   }, [logEntries]);
 
   // ── Actions ───────────────────────────────────────────────────────────────
@@ -331,6 +362,7 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
   }, [job?.id, job?.status]);
 
   const adoptJob = useCallback((snapshot: SystemRebuildJobSnapshot) => {
+    jobFollowingRef.current = true;
     setJobLines([]);
     setJob(snapshot);
   }, []);
@@ -877,7 +909,7 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
               {jobStatusLabel}
             </span>
           </div>
-          <pre ref={jobOutputRef} className="cc-syscontrols-output" aria-live="polite">
+          <pre ref={jobOutputRef} className="cc-syscontrols-output" aria-live="polite" onScroll={updateJobFollowState}>
             {jobLines.map((line) => `${line.stream === "stderr" ? "! " : ""}${line.text}`).join("\n")}
           </pre>
           {job.status === "failed" && job.error ? (
@@ -910,7 +942,7 @@ export function SystemControlsArea({ projectId, addToast }: SystemControlsAreaPr
           </p>
         ) : null}
         {logsOpen && info?.logsSupported ? (
-          <div ref={logOutputRef} className="cc-syscontrols-output cc-syscontrols-logs" aria-live="polite">
+          <div ref={logOutputRef} className="cc-syscontrols-output cc-syscontrols-logs" aria-live="polite" onScroll={updateLogFollowState}>
             {logEntries.map((entry, index) => (
               <div key={`${entry.timestamp}-${index}`} className={`cc-syscontrols-log-line cc-syscontrols-log-line--${entry.level}`}>
                 <span className="cc-syscontrols-log-time">{formatLogTimestamp(entry.timestamp)}</span>