diff --git a/app/components/chat/Markdown.spec.ts b/app/components/chat/Markdown.spec.ts
new file mode 100644
index 00000000..23817789
--- /dev/null
+++ b/app/components/chat/Markdown.spec.ts
@@ -0,0 +1,48 @@
+import { describe, expect, it } from 'vitest';
+import { stripCodeFenceFromArtifact } from './Markdown';
+
+describe('stripCodeFenceFromArtifact', () => {
+  it('should remove code fences around artifact element', () => {
+    const input = "```xml\n<div class='__boltArtifact__'></div>\n```";
+    const expected = "\n<div class='__boltArtifact__'></div>\n";
+    expect(stripCodeFenceFromArtifact(input)).toBe(expected);
+  });
+
+  it('should handle code fence with language specification', () => {
+    const input = "```typescript\n<div class='__boltArtifact__'></div>\n```";
+    const expected = "\n<div class='__boltArtifact__'></div>\n";
+    expect(stripCodeFenceFromArtifact(input)).toBe(expected);
+  });
+
+  it('should not modify content without artifacts', () => {
+    const input = '```\nregular code block\n```';
+    expect(stripCodeFenceFromArtifact(input)).toBe(input);
+  });
+
+  it('should handle empty input', () => {
+    expect(stripCodeFenceFromArtifact('')).toBe('');
+  });
+
+  it('should handle artifact without code fences', () => {
+    const input = "<div class='__boltArtifact__'></div>";
+    expect(stripCodeFenceFromArtifact(input)).toBe(input);
+  });
+
+  it('should handle multiple artifacts but only remove fences around them', () => {
+    const input = [
+      'Some text',
+      '```typescript',
+      "<div class='__boltArtifact__'></div>",
+      '```',
+      '```',
+      'regular code',
+      '```',
+    ].join('\n');
+
+    const expected = ['Some text', '', "<div class='__boltArtifact__'></div>", '', '```', 'regular code', '```'].join(
+      '\n',
+    );
+
+    expect(stripCodeFenceFromArtifact(input)).toBe(expected);
+  });
+});
diff --git a/app/components/chat/Markdown.tsx b/app/components/chat/Markdown.tsx
index a91df43d..07b6a673 100644
--- a/app/components/chat/Markdown.tsx
+++ b/app/components/chat/Markdown.tsx
@@ -68,7 +68,51 @@ export const Markdown = memo(({ children, html = false, limitedMarkdown = false
       remarkPlugins={remarkPlugins(limitedMarkdown)}
       rehypePlugins={rehypePlugins(html)}
     >
-      {children}
+      {stripCodeFenceFromArtifact(children)}
     </ReactMarkdown>
   );
 });
+
+/**
+ * Removes code fence markers (```) surrounding an artifact element while preserving the artifact content.
+ * This is necessary because artifacts should not be wrapped in code blocks when rendered for rendering action list.
+ *
+ * @param content - The markdown content to process
+ * @returns The processed content with code fence markers removed around artifacts
+ *
+ * @example
+ * // Removes code fences around artifact
+ * const input = "```xml\n<div class='__boltArtifact__'></div>\n```";
+ * stripCodeFenceFromArtifact(input);
+ * // Returns: "\n<div class='__boltArtifact__'></div>\n"
+ *
+ * @remarks
+ * - Only removes code fences that directly wrap an artifact (marked with __boltArtifact__ class)
+ * - Handles code fences with optional language specifications (e.g. ```xml, ```typescript)
+ * - Preserves original content if no artifact is found
+ * - Safely handles edge cases like empty input or artifacts at start/end of content
+ */
+export const stripCodeFenceFromArtifact = (content: string) => {
+  if (!content || !content.includes('__boltArtifact__')) {
+    return content;
+  }
+
+  const lines = content.split('\n');
+  const artifactLineIndex = lines.findIndex((line) => line.includes('__boltArtifact__'));
+
+  // Return original content if artifact line not found
+  if (artifactLineIndex === -1) {
+    return content;
+  }
+
+  // Check previous line for code fence
+  if (artifactLineIndex > 0 && lines[artifactLineIndex - 1]?.trim().match(/^```\w*$/)) {
+    lines[artifactLineIndex - 1] = '';
+  }
+
+  if (artifactLineIndex < lines.length - 1 && lines[artifactLineIndex + 1]?.trim().match(/^```$/)) {
+    lines[artifactLineIndex + 1] = '';
+  }
+
+  return lines.join('\n');
+};
diff --git a/app/utils/logger.ts b/app/utils/logger.ts
index 9b2c31c9..1a5c932c 100644
--- a/app/utils/logger.ts
+++ b/app/utils/logger.ts
@@ -11,7 +11,7 @@ interface Logger {
   setLevel: (level: DebugLevel) => void;
 }
 
-let currentLevel: DebugLevel = (import.meta.env.VITE_LOG_LEVEL ?? import.meta.env.DEV) ? 'debug' : 'info';
+let currentLevel: DebugLevel = import.meta.env.VITE_LOG_LEVEL ?? import.meta.env.DEV ? 'debug' : 'info';
 
 const isWorker = 'HTMLRewriter' in globalThis;
 const supportsColor = !isWorker;