diff --git a/AGENTS.md b/AGENTS.md
index dcb1cdf..8feebb7 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -57,13 +57,13 @@ This API surface makes text objects (`ciw`, `di"`), direct cursor manipulation,
 
 ```
 src/
-  index.ts       (342 lines)  Plugin entry: intercept registration, action application
-  vim.ts         (630 lines)  Pure vim engine: state, handlers, command tables, types
+  index.ts       (345 lines)  Plugin entry: intercept registration, action application
+  vim.ts         (638 lines)  Pure vim engine: state, handlers, command tables, types
   leader.ts      (73 lines)   Leader key matching: matchesKeyLike, findMatchingLeader, leaderChar
   clipboard.ts   (19 lines)   writeClipboard() — cross-platform (pbcopy/xclip/xsel/wl-copy/clip.exe)
   version.ts     (46 lines)   Version constant, GitHub update check (cached daily)
 test/
-  vim.test.ts    (1311 lines)  Characterization tests for all key handling branches
+  vim.test.ts    (1341 lines)  Characterization tests for all key handling branches
   leader.test.ts (125 lines)   Unit tests for leader key matching functions
 ```
 
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8e2bfc7..7c86535 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,7 @@ Format follows [Keep a Changelog](https://keepachangelog.com/en/1.1.0/). Version
 
 ### Fixed
 
+- Escape from insert mode now moves cursor left, matching vim.
 - Clipboard now uses `wl-copy` on Wayland instead of `xclip`, which doesn't work there.
 
 ## [0.14.0] — 2026-06-13
diff --git a/src/index.ts b/src/index.ts
index ddbd5f8..b5c6806 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -306,7 +306,7 @@ const plugin: TuiPluginModule = {
         const handlerMode = state.mode;
         const result =
           state.mode === "insert"
-            ? handleInsertKey(state, key, ctx.event)
+            ? handleInsertKey(state, key, ctx.event, prompt)
             : state.mode === "visual"
               ? handleVisualKey(state, key, ctx.event)
               : handleNormalKey(state, key, ctx.event, prompt);
diff --git a/src/vim.ts b/src/vim.ts
index 125bab4..297b2b9 100644
--- a/src/vim.ts
+++ b/src/vim.ts
@@ -160,10 +160,18 @@ export function translateKey(ev: KeyEvent): string {
   return key;
 }
 
-export function handleInsertKey(state: VimState, _key: string, ev: KeyEvent): HandlerResult {
+export function handleInsertKey(state: VimState, _key: string, ev: KeyEvent, prompt: PromptAccess): HandlerResult {
   if (ev.name === "escape") {
     state.mode = "normal";
-    return { consume: true, actions: [{ type: "mode", mode: "normal" }] };
+    const actions: Action[] = [];
+    // Vim moves cursor one left when leaving insert mode,
+    // unless at position 0 or start of line.
+    const offset = prompt.getCursorOffset();
+    if (offset > 0 && prompt.getPlainText()[offset - 1] !== "\n") {
+      actions.push({ type: "cursorTo", offset: offset - 1 });
+    }
+    actions.push({ type: "mode", mode: "normal" });
+    return { consume: true, actions };
   }
   if (ev.name === "return" && ev.ctrl) {
     return { consume: true, actions: [{ type: "cmd", cmd: "input.submit" }] };
diff --git a/test/vim.test.ts b/test/vim.test.ts
index c85d93d..f672840 100644
--- a/test/vim.test.ts
+++ b/test/vim.test.ts
@@ -222,37 +222,67 @@ describe("handleInsertKey", () => {
   });
 
   it("escape → consume, mode normal", () => {
-    const r = handleInsertKey(state, "escape", ev("escape"));
+    const r = handleInsertKey(state, "escape", ev("escape"), mockPrompt);
     expect(r.consume).toBe(true);
     expect(state.mode).toBe("normal");
     expect(r.actions).toContainEqual({ type: "mode", mode: "normal" });
   });
 
   it("enter → consume, input.newline", () => {
-    const r = handleInsertKey(state, "return", ev("return"));
+    const r = handleInsertKey(state, "return", ev("return"), mockPrompt);
     expect(r.consume).toBe(true);
     expect(cmds(r.actions)).toContain("input.newline");
   });
 
   it("ctrl+enter → consume, input.submit", () => {
-    const r = handleInsertKey(state, "return", ev("return", { ctrl: true }));
+    const r = handleInsertKey(state, "return", ev("return", { ctrl: true }), mockPrompt);
     expect(r.consume).toBe(true);
     expect(cmds(r.actions)).toContain("input.submit");
   });
 
   it("tab → consume, insertText tab", () => {
-    const r = handleInsertKey(state, "tab", ev("tab"));
+    const r = handleInsertKey(state, "tab", ev("tab"), mockPrompt);
     expect(r.consume).toBe(true);
     expect(r.actions).toContainEqual({ type: "insertText", text: "\t" });
   });
 
   it("regular key → passthrough", () => {
-    const r = handleInsertKey(state, "a", ev("a"));
+    const r = handleInsertKey(state, "a", ev("a"), mockPrompt);
     expect(r.consume).toBe(false);
   });
 
+  it("escape mid-line moves cursor one left", () => {
+    const midLinePrompt: PromptAccess = {
+      getLine: () => "hello world",
+      getLineCount: () => 1,
+      getCursorLine: () => 0,
+      getCursorOffset: () => 5,
+      getPlainText: () => "hello world",
+    };
+    const r = handleInsertKey(state, "escape", ev("escape"), midLinePrompt);
+    expect(r.consume).toBe(true);
+    expect(cursorTos(r.actions)).toEqual([4]);
+  });
+
+  it("escape at position 0 does not move cursor", () => {
+    const r = handleInsertKey(state, "escape", ev("escape"), mockPrompt);
+    expect(cursorTos(r.actions)).toEqual([]);
+  });
+
+  it("escape at start of line does not move cursor", () => {
+    const startOfLinePrompt: PromptAccess = {
+      getLine: (n) => ["hello world", "second line"][n] ?? "",
+      getLineCount: () => 2,
+      getCursorLine: () => 1,
+      getCursorOffset: () => 12,
+      getPlainText: () => "hello world\nsecond line",
+    };
+    const r = handleInsertKey(state, "escape", ev("escape"), startOfLinePrompt);
+    expect(cursorTos(r.actions)).toEqual([]);
+  });
+
   it("ctrl+o enters normal mode with oneShotNormal flag", () => {
-    const r = handleInsertKey(state, "o", ev("o", { ctrl: true }));
+    const r = handleInsertKey(state, "o", ev("o", { ctrl: true }), mockPrompt);
     expect(r.consume).toBe(true);
     expect(state.mode).toBe("normal");
     expect(state.oneShotNormal).toBe(true);
@@ -260,7 +290,7 @@ describe("handleInsertKey", () => {
   });
 
   it("ctrl+o emits (insert) mode action", () => {
-    const r = handleInsertKey(state, "o", ev("o", { ctrl: true }));
+    const r = handleInsertKey(state, "o", ev("o", { ctrl: true }), mockPrompt);
     expect(r.actions.some((a) => a.type === "mode" && a.mode === "(insert)")).toBe(true);
   });
 });
@@ -994,7 +1024,7 @@ describe("handleVisualKey — exit and passthrough", () => {
 describe("Ctrl+O one-shot normal mode", () => {
   function enterOneShot() {
     state.mode = "insert";
-    handleInsertKey(state, "o", ev("o", { ctrl: true }));
+    handleInsertKey(state, "o", ev("o", { ctrl: true }), mockPrompt);
   }
 
   it("w auto-returns to insert", () => {