diff --git a/docs/cli/plan-mode.md b/docs/cli/plan-mode.md
index 1e88560f7ad..2cf01ae3547 100644
--- a/docs/cli/plan-mode.md
+++ b/docs/cli/plan-mode.md
@@ -61,7 +61,7 @@ Other ways to start in Plan Mode:
 You can enter Plan Mode in three ways:
 
 1.  **Keyboard Shortcut:** Press `Shift+Tab` to cycle through approval modes
-    (`Default` -> `Plan` -> `Auto-Edit`).
+    (`Default` -> `Auto-Edit` -> `Plan`).
 2.  **Command:** Type `/plan` in the input box.
 3.  **Natural Language:** Ask the agent to "start a plan for...". The agent will
     then call the [`enter_plan_mode`] tool to switch modes.
diff --git a/packages/cli/src/ui/components/ApprovalModeIndicator.test.tsx b/packages/cli/src/ui/components/ApprovalModeIndicator.test.tsx
index d16925cb4b6..972aa586a06 100644
--- a/packages/cli/src/ui/components/ApprovalModeIndicator.test.tsx
+++ b/packages/cli/src/ui/components/ApprovalModeIndicator.test.tsx
@@ -14,9 +14,7 @@ describe('ApprovalModeIndicator', () => {
     const { lastFrame } = render(
       <ApprovalModeIndicator approvalMode={ApprovalMode.AUTO_EDIT} />,
     );
-    const output = lastFrame();
-    expect(output).toContain('auto-accept edits');
-    expect(output).toContain('shift+tab to manual');
+    expect(lastFrame()).toMatchSnapshot();
   });
 
   it('renders correctly for AUTO_EDIT mode with plan enabled', () => {
@@ -26,35 +24,28 @@ describe('ApprovalModeIndicator', () => {
         isPlanEnabled={true}
       />,
     );
-    const output = lastFrame();
-    expect(output).toContain('auto-accept edits');
-    expect(output).toContain('shift+tab to manual');
+    expect(lastFrame()).toMatchSnapshot();
   });
 
   it('renders correctly for PLAN mode', () => {
     const { lastFrame } = render(
       <ApprovalModeIndicator approvalMode={ApprovalMode.PLAN} />,
     );
-    const output = lastFrame();
-    expect(output).toContain('plan');
-    expect(output).toContain('shift+tab to accept edits');
+    expect(lastFrame()).toMatchSnapshot();
   });
 
   it('renders correctly for YOLO mode', () => {
     const { lastFrame } = render(
       <ApprovalModeIndicator approvalMode={ApprovalMode.YOLO} />,
     );
-    const output = lastFrame();
-    expect(output).toContain('YOLO');
-    expect(output).toContain('ctrl+y');
+    expect(lastFrame()).toMatchSnapshot();
   });
 
   it('renders correctly for DEFAULT mode', () => {
     const { lastFrame } = render(
       <ApprovalModeIndicator approvalMode={ApprovalMode.DEFAULT} />,
     );
-    const output = lastFrame();
-    expect(output).toContain('shift+tab to accept edits');
+    expect(lastFrame()).toMatchSnapshot();
   });
 
   it('renders correctly for DEFAULT mode with plan enabled', () => {
@@ -64,7 +55,6 @@ describe('ApprovalModeIndicator', () => {
         isPlanEnabled={true}
       />,
     );
-    const output = lastFrame();
-    expect(output).toContain('shift+tab to plan');
+    expect(lastFrame()).toMatchSnapshot();
   });
 });
diff --git a/packages/cli/src/ui/components/ApprovalModeIndicator.tsx b/packages/cli/src/ui/components/ApprovalModeIndicator.tsx
index 6b1b1cfa53c..ef5ae2caadb 100644
--- a/packages/cli/src/ui/components/ApprovalModeIndicator.tsx
+++ b/packages/cli/src/ui/components/ApprovalModeIndicator.tsx
@@ -14,6 +14,16 @@ interface ApprovalModeIndicatorProps {
   isPlanEnabled?: boolean;
 }
 
+export const APPROVAL_MODE_TEXT = {
+  AUTO_EDIT: 'auto-accept edits',
+  PLAN: 'plan',
+  YOLO: 'YOLO',
+  HINT_SWITCH_TO_PLAN_MODE: 'shift+tab to plan',
+  HINT_SWITCH_TO_MANUAL_MODE: 'shift+tab to manual',
+  HINT_SWITCH_TO_AUTO_EDIT_MODE: 'shift+tab to accept edits',
+  HINT_SWITCH_TO_YOLO_MODE: 'ctrl+y',
+};
+
 export const ApprovalModeIndicator: React.FC<ApprovalModeIndicatorProps> = ({
   approvalMode,
   isPlanEnabled,
@@ -25,26 +35,26 @@ export const ApprovalModeIndicator: React.FC<ApprovalModeIndicatorProps> = ({
   switch (approvalMode) {
     case ApprovalMode.AUTO_EDIT:
       textColor = theme.status.warning;
-      textContent = 'auto-accept edits';
-      subText = 'shift+tab to manual';
+      textContent = APPROVAL_MODE_TEXT.AUTO_EDIT;
+      subText = isPlanEnabled
+        ? APPROVAL_MODE_TEXT.HINT_SWITCH_TO_PLAN_MODE
+        : APPROVAL_MODE_TEXT.HINT_SWITCH_TO_MANUAL_MODE;
       break;
     case ApprovalMode.PLAN:
       textColor = theme.status.success;
-      textContent = 'plan';
-      subText = 'shift+tab to accept edits';
+      textContent = APPROVAL_MODE_TEXT.PLAN;
+      subText = APPROVAL_MODE_TEXT.HINT_SWITCH_TO_MANUAL_MODE;
       break;
     case ApprovalMode.YOLO:
       textColor = theme.status.error;
-      textContent = 'YOLO';
-      subText = 'ctrl+y';
+      textContent = APPROVAL_MODE_TEXT.YOLO;
+      subText = APPROVAL_MODE_TEXT.HINT_SWITCH_TO_YOLO_MODE;
       break;
     case ApprovalMode.DEFAULT:
     default:
       textColor = theme.text.accent;
       textContent = '';
-      subText = isPlanEnabled
-        ? 'shift+tab to plan'
-        : 'shift+tab to accept edits';
+      subText = APPROVAL_MODE_TEXT.HINT_SWITCH_TO_AUTO_EDIT_MODE;
       break;
   }
 
diff --git a/packages/cli/src/ui/components/__snapshots__/ApprovalModeIndicator.test.tsx.snap b/packages/cli/src/ui/components/__snapshots__/ApprovalModeIndicator.test.tsx.snap
new file mode 100644
index 00000000000..839d72764cd
--- /dev/null
+++ b/packages/cli/src/ui/components/__snapshots__/ApprovalModeIndicator.test.tsx.snap
@@ -0,0 +1,13 @@
+// Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
+
+exports[`ApprovalModeIndicator > renders correctly for AUTO_EDIT mode 1`] = `"auto-accept edits shift+tab to manual"`;
+
+exports[`ApprovalModeIndicator > renders correctly for AUTO_EDIT mode with plan enabled 1`] = `"auto-accept edits shift+tab to plan"`;
+
+exports[`ApprovalModeIndicator > renders correctly for DEFAULT mode 1`] = `"shift+tab to accept edits"`;
+
+exports[`ApprovalModeIndicator > renders correctly for DEFAULT mode with plan enabled 1`] = `"shift+tab to accept edits"`;
+
+exports[`ApprovalModeIndicator > renders correctly for PLAN mode 1`] = `"plan shift+tab to manual"`;
+
+exports[`ApprovalModeIndicator > renders correctly for YOLO mode 1`] = `"YOLO ctrl+y"`;
diff --git a/packages/cli/src/ui/hooks/useApprovalModeIndicator.test.ts b/packages/cli/src/ui/hooks/useApprovalModeIndicator.test.ts
index 0b61023b18d..bdd99be61dd 100644
--- a/packages/cli/src/ui/hooks/useApprovalModeIndicator.test.ts
+++ b/packages/cli/src/ui/hooks/useApprovalModeIndicator.test.ts
@@ -202,7 +202,7 @@ describe('useApprovalModeIndicator', () => {
     );
     expect(result.current).toBe(ApprovalMode.YOLO);
 
-    // Shift+Tab cycles back to DEFAULT (since PLAN is disabled by default in mock)
+    // Shift+Tab cycles back to AUTO_EDIT (from YOLO)
     act(() => {
       capturedUseKeypressHandler({
         name: 'tab',
@@ -236,7 +236,7 @@ describe('useApprovalModeIndicator', () => {
     expect(result.current).toBe(ApprovalMode.AUTO_EDIT);
   });
 
-  it('should cycle through DEFAULT -> PLAN -> AUTO_EDIT -> DEFAULT when plan is enabled', () => {
+  it('should cycle through DEFAULT -> AUTO_EDIT -> PLAN -> DEFAULT when plan is enabled', () => {
     mockConfigInstance.getApprovalMode.mockReturnValue(ApprovalMode.DEFAULT);
     mockConfigInstance.isPlanEnabled.mockReturnValue(true);
     renderHook(() =>
@@ -246,23 +246,23 @@ describe('useApprovalModeIndicator', () => {
       }),
     );
 
-    // DEFAULT -> PLAN
+    // DEFAULT -> AUTO_EDIT
     act(() => {
       capturedUseKeypressHandler({ name: 'tab', shift: true } as Key);
     });
     expect(mockConfigInstance.setApprovalMode).toHaveBeenCalledWith(
-      ApprovalMode.PLAN,
+      ApprovalMode.AUTO_EDIT,
     );
 
-    // PLAN -> AUTO_EDIT
+    // AUTO_EDIT -> PLAN
     act(() => {
       capturedUseKeypressHandler({ name: 'tab', shift: true } as Key);
     });
     expect(mockConfigInstance.setApprovalMode).toHaveBeenCalledWith(
-      ApprovalMode.AUTO_EDIT,
+      ApprovalMode.PLAN,
     );
 
-    // AUTO_EDIT -> DEFAULT
+    // PLAN -> DEFAULT
     act(() => {
       capturedUseKeypressHandler({ name: 'tab', shift: true } as Key);
     });
diff --git a/packages/cli/src/ui/hooks/useApprovalModeIndicator.ts b/packages/cli/src/ui/hooks/useApprovalModeIndicator.ts
index b48ce923386..d12afb12064 100644
--- a/packages/cli/src/ui/hooks/useApprovalModeIndicator.ts
+++ b/packages/cli/src/ui/hooks/useApprovalModeIndicator.ts
@@ -72,14 +72,14 @@ export function useApprovalModeIndicator({
         const currentMode = config.getApprovalMode();
         switch (currentMode) {
           case ApprovalMode.DEFAULT:
+            nextApprovalMode = ApprovalMode.AUTO_EDIT;
+            break;
+          case ApprovalMode.AUTO_EDIT:
             nextApprovalMode = config.isPlanEnabled()
               ? ApprovalMode.PLAN
-              : ApprovalMode.AUTO_EDIT;
+              : ApprovalMode.DEFAULT;
             break;
           case ApprovalMode.PLAN:
-            nextApprovalMode = ApprovalMode.AUTO_EDIT;
-            break;
-          case ApprovalMode.AUTO_EDIT:
             nextApprovalMode = ApprovalMode.DEFAULT;
             break;
           case ApprovalMode.YOLO: