diff --git a/cecli/coders/base_coder.py b/cecli/coders/base_coder.py
index 28a072738c9..10f18a35aa1 100755
--- a/cecli/coders/base_coder.py
+++ b/cecli/coders/base_coder.py
@@ -1573,9 +1573,14 @@ async def generate(self, user_message, preproc):
 
         try:
             if self.enable_context_compaction:
-                self.compact_context_completed = False
-                await self.compact_context_if_needed()
-                self.compact_context_completed = True
+                # Skip compaction if the user wants to clear or exit
+                # Compacting is wasteful since /clear will clear everything
+                # and /exit will exit the application
+                stripped = user_message.strip()
+                if stripped not in ("/clear", "/exit", "/quit"):
+                    self.compact_context_completed = False
+                    await self.compact_context_if_needed()
+                    self.compact_context_completed = True
 
             self.run_one_completed = False
             await self.run_one(user_message, preproc)
diff --git a/tests/commands/test_compaction.py b/tests/commands/test_compaction.py
new file mode 100644
index 00000000000..3d17cfd4993
--- /dev/null
+++ b/tests/commands/test_compaction.py
@@ -0,0 +1,105 @@
+from unittest.mock import AsyncMock, MagicMock
+
+import pytest
+
+# It's better to patch the Coder class where it's used if possible,
+# but for this test, we will instantiate it and mock its methods.
+from cecli.coders.base_coder import Coder
+from cecli.io import InputOutput
+
+
+@pytest.fixture
+def mock_io():
+    """Fixture for a mocked InputOutput object."""
+    return MagicMock(spec=InputOutput)
+
+
+@pytest.fixture
+def mock_model():
+    """Fixture for a mocked model object."""
+    model = MagicMock()
+    model.info = {"max_input_tokens": 10000}
+    # Mock the name attribute that is used in Coder.create
+    model.name = "mock_model"
+    model.edit_format = "wholefile"
+    return model
+
+
+@pytest.mark.asyncio
+async def test_generate_skips_compaction_for_clear_command(mock_io, mock_model):
+    """
+    Verify that compact_context_if_needed is NOT called for the /clear command.
+    """
+    # Arrange
+    coder = await Coder.create(main_model=mock_model, io=mock_io, edit_format="wholefile")
+    coder.enable_context_compaction = True
+    coder.compact_context_if_needed = AsyncMock()
+    coder.run_one = AsyncMock()
+    user_message = "/clear"
+
+    # Act
+    await coder.generate(user_message, preproc=True)
+
+    # Assert
+    coder.compact_context_if_needed.assert_not_called()
+    coder.run_one.assert_called_once_with(user_message, True)
+
+
+@pytest.mark.asyncio
+async def test_generate_skips_compaction_for_exit_command(mock_io, mock_model):
+    """
+    Verify that compact_context_if_needed is NOT called for the /exit command.
+    """
+    # Arrange
+    coder = await Coder.create(main_model=mock_model, io=mock_io, edit_format="wholefile")
+    coder.enable_context_compaction = True
+    coder.compact_context_if_needed = AsyncMock()
+    coder.run_one = AsyncMock()
+    user_message = "/exit"
+
+    # Act
+    await coder.generate(user_message, preproc=True)
+
+    # Assert
+    coder.compact_context_if_needed.assert_not_called()
+    coder.run_one.assert_called_once_with(user_message, True)
+
+
+@pytest.mark.asyncio
+async def test_generate_skips_compaction_for_quit_command(mock_io, mock_model):
+    """
+    Verify that compact_context_if_needed is NOT called for the /quit command.
+    """
+    # Arrange
+    coder = await Coder.create(main_model=mock_model, io=mock_io, edit_format="wholefile")
+    coder.enable_context_compaction = True
+    coder.compact_context_if_needed = AsyncMock()
+    coder.run_one = AsyncMock()
+    user_message = "/quit"
+
+    # Act
+    await coder.generate(user_message, preproc=True)
+
+    # Assert
+    coder.compact_context_if_needed.assert_not_called()
+    coder.run_one.assert_called_once_with(user_message, True)
+
+
+@pytest.mark.asyncio
+async def test_generate_runs_compaction_for_regular_message(mock_io, mock_model):
+    """
+    Verify that compact_context_if_needed IS called for a regular message.
+    """
+    # Arrange
+    coder = await Coder.create(main_model=mock_model, io=mock_io, edit_format="wholefile")
+    coder.enable_context_compaction = True
+    coder.compact_context_if_needed = AsyncMock()
+    coder.run_one = AsyncMock()
+    user_message = "This is a regular message"
+
+    # Act
+    await coder.generate(user_message, preproc=True)
+
+    # Assert
+    coder.compact_context_if_needed.assert_called_once()
+    coder.run_one.assert_called_once_with(user_message, True)