diff --git a/src/stores/transcriptionStore.ts b/src/stores/transcriptionStore.ts
index 469ce0e..bf310d8 100644
--- a/src/stores/transcriptionStore.ts
+++ b/src/stores/transcriptionStore.ts
@@ -249,11 +249,9 @@ export const useTranscriptionStore = create<TranscriptionState>((set, get) => ({
     const { completedSegments, currentSegment, activeSession, wordCount } = get();
 
     if (isFinal) {
-      // Final segment - move current to completed, clear current
-      const newCompleted = [...completedSegments];
-      if (currentSegment && currentSegment.text.trim()) {
-        newCompleted.push({ ...currentSegment, isFinal: true });
-      }
+      // Final segment — append the finalized text directly (not currentSegment, which
+      // may lag behind or duplicate when WhisperLive re-sends the full segments array).
+      const newCompleted = [...completedSegments, { text, isFinal: true, ...metadata }];
       const newWordCount = newCompleted.reduce(
         (sum, seg) => sum + seg.text.trim().split(/\s+/).filter(Boolean).length,
         0
diff --git a/src/utils/tldraw/cc-base/cc-transcription/transcriptionService.tsx b/src/utils/tldraw/cc-base/cc-transcription/transcriptionService.tsx
index 7e27112..a46d78e 100644
--- a/src/utils/tldraw/cc-base/cc-transcription/transcriptionService.tsx
+++ b/src/utils/tldraw/cc-base/cc-transcription/transcriptionService.tsx
@@ -14,6 +14,7 @@ export class TranscriptionService {
   private mediaStreamSource: MediaStreamAudioSourceNode | null = null;
   private workletNode: AudioWorkletNode | null = null;
   private selectedDeviceId: string = '';
+  private finalizedSegmentCount: number = 0;
   private onTranscriptionUpdate: ((text: string, isFinal: boolean, metadata: { start: number, end: number }) => void) | null = null;
 
   constructor(deviceId: string = '') {
@@ -99,39 +100,27 @@ export class TranscriptionService {
           return;
         }
 
-        if (this.onTranscriptionUpdate && data.segments) {
-          // Get the last segment which is the current one being updated
-          const lastSegment = data.segments[data.segments.length - 1];
-          
-          // Process completed segments
-          let lastCompletedText = '';
-          for (let i = 0; i < data.segments.length - 1; i++) {
-            const segment = data.segments[i];
-            // Only send update if this segment is different from the last one
-            if (segment.text.trim() !== lastCompletedText.trim()) {
-              this.onTranscriptionUpdate(
-                segment.text,
-                segment.completed ?? true, // Server marks completed segments
-                {
-                  start: parseFloat(segment.start),
-                  end: parseFloat(segment.end)
-                }
-              );
-              lastCompletedText = segment.text;
-            }
+        if (this.onTranscriptionUpdate && data.segments && data.segments.length > 0) {
+          const segments = data.segments;
+          const lastIdx = segments.length - 1;
+
+          // Only emit segments we have not finalized yet — avoids re-processing the
+          // full array on every message (which caused the "stuck last segment" bug).
+          for (let i = this.finalizedSegmentCount; i < lastIdx; i++) {
+            const seg = segments[i];
+            this.onTranscriptionUpdate(seg.text, true, {
+              start: parseFloat(seg.start),
+              end: parseFloat(seg.end),
+            });
+            this.finalizedSegmentCount = i + 1;
           }
 
-          // Update the current (incomplete) segment only if it's different from the last completed one
-          if (lastSegment && lastSegment.text.trim() !== lastCompletedText.trim()) {
-            this.onTranscriptionUpdate(
-              lastSegment.text,
-              lastSegment.completed ?? false, // Last segment is typically incomplete unless marked otherwise
-              {
-                start: parseFloat(lastSegment.start),
-                end: parseFloat(lastSegment.end)
-              }
-            );
-          }
+          // Always update the live (last) segment
+          const lastSeg = segments[lastIdx];
+          this.onTranscriptionUpdate(lastSeg.text, lastSeg.completed ?? false, {
+            start: parseFloat(lastSeg.start),
+            end: parseFloat(lastSeg.end),
+          });
         }
       };
     } catch (error) {
@@ -190,6 +179,7 @@ export class TranscriptionService {
   }
 
   private cleanup() {
+    this.finalizedSegmentCount = 0;
     if (this.workletNode) {
       this.workletNode.disconnect();
       this.workletNode = null;
diff --git a/src/utils/tldraw/ui-overrides/components/shared/CCTranscriptionPanel.tsx b/src/utils/tldraw/ui-overrides/components/shared/CCTranscriptionPanel.tsx
index c846cc0..6cd8ef2 100644
--- a/src/utils/tldraw/ui-overrides/components/shared/CCTranscriptionPanel.tsx
+++ b/src/utils/tldraw/ui-overrides/components/shared/CCTranscriptionPanel.tsx
@@ -365,7 +365,7 @@ export const CCTranscriptionPanel: React.FC = () => {
                 fontSize: "14px",
                 fontWeight: 600,
                 color: "#fff",
-                backgroundColor: isRecording ? "#ef4444" : "var(--color-text)",
+                backgroundColor: isRecording ? "#ef4444" : "#2563eb",
                 transition: "background-color 200ms ease",
               }}
             >
@@ -538,7 +538,7 @@ export const CCTranscriptionPanel: React.FC = () => {
                 key={"completed-" + i}
                 style={{
                   padding: "8px 10px",
-                  backgroundColor: "#fff",
+                  backgroundColor: "var(--color-muted)",
                   borderRadius: "4px",
                   border: "1px solid var(--color-divider)",
                   fontSize: "13px",
@@ -614,7 +614,7 @@ export const CCTranscriptionPanel: React.FC = () => {
                   key={session.id}
                   style={{
                     padding: "10px",
-                    backgroundColor: "#fff",
+                    backgroundColor: "var(--color-muted)",
                     borderRadius: "4px",
                     border: "1px solid var(--color-divider)",
                   }}
@@ -694,7 +694,7 @@ export const CCTranscriptionPanel: React.FC = () => {
                   padding: "6px 10px",
                   border: "none",
                   borderRadius: "4px",
-                  backgroundColor: newKeyword.trim() ? "var(--color-text)" : "var(--color-divider)",
+                  backgroundColor: newKeyword.trim() ? "#2563eb" : "var(--color-divider)",
                   color: "#fff",
                   cursor: newKeyword.trim() ? "pointer" : "not-allowed",
                   fontSize: "13px",
@@ -722,7 +722,7 @@ export const CCTranscriptionPanel: React.FC = () => {
                     alignItems: "center",
                     justifyContent: "space-between",
                     padding: "6px 10px",
-                    backgroundColor: "#fff",
+                    backgroundColor: "var(--color-muted)",
                     borderRadius: "4px",
                     border: "1px solid var(--color-divider)",
                   }}