diff --git a/cli.py b/cli.py
index 06fb1127fb..65daaad525 100755
--- a/cli.py
+++ b/cli.py
@@ -136,7 +136,7 @@ def load_cli_config() -> Dict[str, Any]:
             "timeout": 120,  # Seconds to wait for a clarify answer before auto-proceeding
         },
         "code_execution": {
-            "timeout": 120,    # Max seconds a sandbox script can run before being killed
+            "timeout": 300,    # Max seconds a sandbox script can run before being killed (5 min)
             "max_tool_calls": 50,  # Max RPC tool calls per execution
         },
     }
diff --git a/tools/code_execution_tool.py b/tools/code_execution_tool.py
index 0055eac7ad..0bbecd3450 100644
--- a/tools/code_execution_tool.py
+++ b/tools/code_execution_tool.py
@@ -46,7 +46,7 @@ SANDBOX_ALLOWED_TOOLS = frozenset([
 ])
 
 # Resource limit defaults (overridable via config.yaml → code_execution.*)
-DEFAULT_TIMEOUT = 120        # seconds
+DEFAULT_TIMEOUT = 300        # 5 minutes
 DEFAULT_MAX_TOOL_CALLS = 50
 MAX_STDOUT_BYTES = 50_000    # 50 KB
 MAX_STDERR_BYTES = 10_000    # 10 KB
@@ -255,11 +255,21 @@ def _rpc_server_loop(
                     for param in _TERMINAL_BLOCKED_PARAMS:
                         tool_args.pop(param, None)
 
-                # Dispatch through the standard tool handler
+                # Dispatch through the standard tool handler.
+                # Suppress stdout/stderr from internal tool handlers so
+                # their status prints don't leak into the CLI spinner.
                 try:
-                    result = handle_function_call(
-                        tool_name, tool_args, task_id=task_id
-                    )
+                    _real_stdout, _real_stderr = sys.stdout, sys.stderr
+                    sys.stdout = open(os.devnull, "w")
+                    sys.stderr = open(os.devnull, "w")
+                    try:
+                        result = handle_function_call(
+                            tool_name, tool_args, task_id=task_id
+                        )
+                    finally:
+                        sys.stdout.close()
+                        sys.stderr.close()
+                        sys.stdout, sys.stderr = _real_stdout, _real_stderr
                 except Exception as exc:
                     result = json.dumps({"error": str(exc)})