diff --git a/apps/desktop/src/settings/DesktopClientSettings.test.ts b/apps/desktop/src/settings/DesktopClientSettings.test.ts
index cb63ba62605a..4867d8524093 100644
--- a/apps/desktop/src/settings/DesktopClientSettings.test.ts
+++ b/apps/desktop/src/settings/DesktopClientSettings.test.ts
@@ -18,6 +18,7 @@ const clientSettings: ClientSettings = {
   browserDefaultZoomFactor: 1.25,
   browserDefaultAppearance: "dark",
   browserAutoShowFloatingPreview: false,
+  compactLegacySidebarStatuses: false,
   confirmQuit: true,
   confirmThreadArchive: true,
   confirmThreadDelete: false,
diff --git a/apps/desktop/src/settings/LastCodeSettingsImport.test.ts b/apps/desktop/src/settings/LastCodeSettingsImport.test.ts
index 0d4a992a97de..f2ff48a9ae4c 100644
--- a/apps/desktop/src/settings/LastCodeSettingsImport.test.ts
+++ b/apps/desktop/src/settings/LastCodeSettingsImport.test.ts
@@ -91,6 +91,7 @@ describe("LastCodeSettingsImport", () => {
     const sourceCustom = ProviderInstanceId.make("source_custom");
     const lastCodeCustom = ProviderInstanceId.make("lastcode_custom");
     const sourceClient = { ...DEFAULT_CLIENT_SETTINGS, fontSizeInterface: 17 };
+    Reflect.deleteProperty(sourceClient, "compactLegacySidebarStatuses");
     Reflect.deleteProperty(sourceClient, "legacySidebarScale");
     Reflect.deleteProperty(sourceClient, "roundedProjectIcons");
     sourceClient.favorites = [
@@ -103,6 +104,7 @@ describe("LastCodeSettingsImport", () => {
     };
     const destinationClient = {
       ...DEFAULT_CLIENT_SETTINGS,
+      compactLegacySidebarStatuses: true,
       legacySidebarScale: 75,
       roundedProjectIcons: true,
       environmentIconColors: { primary: "#2563eb", remote: "#7c3aed" },
@@ -215,6 +217,7 @@ describe("LastCodeSettingsImport", () => {
       ) as unknown,
     );
     assert.equal(importedClient.fontSizeInterface, 17);
+    assert.equal(importedClient.compactLegacySidebarStatuses, true);
     assert.equal(importedClient.legacySidebarScale, 75);
     assert.equal(importedClient.roundedProjectIcons, true);
     assert.deepEqual(importedClient.environmentIconColors, {
diff --git a/apps/desktop/src/settings/LastCodeSettingsImport.ts b/apps/desktop/src/settings/LastCodeSettingsImport.ts
index d21cfdfbd12f..806b227f9564 100644
--- a/apps/desktop/src/settings/LastCodeSettingsImport.ts
+++ b/apps/desktop/src/settings/LastCodeSettingsImport.ts
@@ -236,6 +236,7 @@ function mergeClientSettings(sourceRaw: string, destinationRaw: string | null):
     ...source,
     favorites,
     providerModelPreferences,
+    compactLegacySidebarStatuses: destination.compactLegacySidebarStatuses,
     environmentIconColors: destination.environmentIconColors,
     legacySidebarScale: destination.legacySidebarScale,
     roundedProjectIcons: destination.roundedProjectIcons,
diff --git a/apps/web/src/components/LegacySidebar.tsx b/apps/web/src/components/LegacySidebar.tsx
index 1c632a4d48f7..45172ea581c8 100644
--- a/apps/web/src/components/LegacySidebar.tsx
+++ b/apps/web/src/components/LegacySidebar.tsx
@@ -340,6 +340,7 @@ function buildThreadJumpLabelMap(input: {
 
 interface SidebarThreadRowProps {
   thread: SidebarThreadSummary;
+  compactStatusIndicators: boolean;
   showLocalEnvironmentIcon: boolean;
   configuredEnvironmentIconColor: EnvironmentIconColor | undefined;
   projectCwd: string | null;
@@ -889,7 +890,9 @@ export const SidebarThreadRow = memo(function SidebarThreadRow(props: SidebarThr
               </TooltipPopup>
             </Tooltip>
           )}
-          {threadStatus && <ThreadStatusLabel status={threadStatus} />}
+          {threadStatus && (
+            <ThreadStatusLabel status={threadStatus} compact={props.compactStatusIndicators} />
+          )}
           {renamingThreadKey === threadKey ? (
             <input
               ref={handleRenameInputRef}
@@ -1137,6 +1140,7 @@ export const SidebarThreadRow = memo(function SidebarThreadRow(props: SidebarThr
 
 interface SidebarProjectThreadListProps {
   legacySidebarScale: LegacySidebarScale;
+  compactStatusIndicators: boolean;
   scaleStyle: CSSProperties;
   providerEntriesByEnvironmentId: ReadonlyMap<string, ReadonlyMap<string, ProviderInstanceEntry>>;
   environmentIconColors: Readonly<Record<string, EnvironmentIconColor>>;
@@ -1201,6 +1205,7 @@ const SidebarProjectThreadList = memo(function SidebarProjectThreadList(
 ) {
   const {
     legacySidebarScale,
+    compactStatusIndicators,
     scaleStyle,
     providerEntriesByEnvironmentId,
     environmentIconColors,
@@ -1271,6 +1276,7 @@ const SidebarProjectThreadList = memo(function SidebarProjectThreadList(
             <SidebarThreadRow
               key={threadKey}
               thread={thread}
+              compactStatusIndicators={compactStatusIndicators}
               showLocalEnvironmentIcon={showLocalEnvironmentIcon}
               configuredEnvironmentIconColor={environmentIconColors[thread.environmentId]}
               projectCwd={projectCwd}
@@ -1344,6 +1350,7 @@ const SidebarProjectThreadList = memo(function SidebarProjectThreadList(
 
 interface SidebarProjectItemProps {
   legacySidebarScale: LegacySidebarScale;
+  compactStatusIndicators: boolean;
   scaleStyle: CSSProperties;
   providerEntriesByEnvironmentId: ReadonlyMap<string, ReadonlyMap<string, ProviderInstanceEntry>>;
   desktopLocalEnvironmentIds: ReadonlySet<EnvironmentId>;
@@ -1372,6 +1379,7 @@ interface SidebarProjectItemProps {
 const SidebarProjectItem = memo(function SidebarProjectItem(props: SidebarProjectItemProps) {
   const {
     legacySidebarScale,
+    compactStatusIndicators,
     scaleStyle,
     providerEntriesByEnvironmentId,
     project,
@@ -2755,6 +2763,7 @@ const SidebarProjectItem = memo(function SidebarProjectItem(props: SidebarProjec
 
       <SidebarProjectThreadList
         legacySidebarScale={legacySidebarScale}
+        compactStatusIndicators={compactStatusIndicators}
         scaleStyle={scaleStyle}
         providerEntriesByEnvironmentId={providerEntriesByEnvironmentId}
         environmentIconColors={props.environmentIconColors}
@@ -3213,6 +3222,7 @@ interface SidebarProjectsContentProps {
   attachProjectListAutoAnimateRef: (node: HTMLElement | null) => void;
   projectsLength: number;
   legacySidebarScale: LegacySidebarScale;
+  compactStatusIndicators: boolean;
   projectTreeScaleStyle: CSSProperties;
   providerEntriesByEnvironmentId: ReadonlyMap<string, ReadonlyMap<string, ProviderInstanceEntry>>;
   desktopLocalEnvironmentIds: ReadonlySet<EnvironmentId>;
@@ -3328,6 +3338,7 @@ const SidebarProjectsContent = memo(function SidebarProjectsContent(
     attachProjectListAutoAnimateRef,
     projectsLength,
     legacySidebarScale,
+    compactStatusIndicators,
     projectTreeScaleStyle,
     providerEntriesByEnvironmentId,
     desktopLocalEnvironmentIds,
@@ -3461,6 +3472,7 @@ const SidebarProjectsContent = memo(function SidebarProjectsContent(
                     {(dragHandleProps) => (
                       <SidebarProjectItem
                         legacySidebarScale={legacySidebarScale}
+                        compactStatusIndicators={compactStatusIndicators}
                         scaleStyle={projectTreeScaleStyle}
                         providerEntriesByEnvironmentId={providerEntriesByEnvironmentId}
                         desktopLocalEnvironmentIds={desktopLocalEnvironmentIds}
@@ -3501,6 +3513,7 @@ const SidebarProjectsContent = memo(function SidebarProjectsContent(
               <SidebarProjectListRow
                 key={project.projectKey}
                 legacySidebarScale={legacySidebarScale}
+                compactStatusIndicators={compactStatusIndicators}
                 scaleStyle={projectTreeScaleStyle}
                 providerEntriesByEnvironmentId={providerEntriesByEnvironmentId}
                 desktopLocalEnvironmentIds={desktopLocalEnvironmentIds}
@@ -3557,6 +3570,9 @@ export default function LegacySidebar() {
   const projectGroupingSettings = useClientSettings(selectProjectGroupingSettings);
   const sidebarThreadPreviewCount = useClientSettings((s) => s.sidebarThreadPreviewCount);
   const legacySidebarScale = useClientSettings<LegacySidebarScale>((s) => s.legacySidebarScale);
+  const compactStatusIndicators = useClientSettings(
+    (settings) => settings.compactLegacySidebarStatuses,
+  );
   const environmentIconColors = useClientSettings((s) => s.environmentIconColors);
   const showLocalEnvironmentIcon = useClientSettings((s) => s.showLocalEnvironmentIcon);
   const serverProviders = useAtomValue(primaryServerProvidersAtom);
@@ -4247,6 +4263,7 @@ export default function LegacySidebar() {
         attachProjectListAutoAnimateRef={attachProjectListAutoAnimateRef}
         projectsLength={projects.length}
         legacySidebarScale={legacySidebarScale}
+        compactStatusIndicators={compactStatusIndicators}
         projectTreeScaleStyle={scaleStyle}
         providerEntriesByEnvironmentId={providerEntriesByEnvironmentId}
         desktopLocalEnvironmentIds={desktopLocalEnvironmentIds}
diff --git a/apps/web/src/components/ThreadStatusIndicators.tsx b/apps/web/src/components/ThreadStatusIndicators.tsx
index b2a8dcb7046e..a94fc5e6e6b0 100644
--- a/apps/web/src/components/ThreadStatusIndicators.tsx
+++ b/apps/web/src/components/ThreadStatusIndicators.tsx
@@ -361,6 +361,7 @@ export function ThreadStatusLabel({
         <TooltipTrigger
           render={
             <span
+              role="img"
               aria-label={status.label}
               className={`inline-flex size-3.5 shrink-0 items-center justify-center ${status.colorClass}`}
             />
diff --git a/apps/web/src/components/settings/LastCodeSettings.tsx b/apps/web/src/components/settings/LastCodeSettings.tsx
index 537b02ffd020..c083c65d5291 100644
--- a/apps/web/src/components/settings/LastCodeSettings.tsx
+++ b/apps/web/src/components/settings/LastCodeSettings.tsx
@@ -234,6 +234,19 @@ export function LastCodeSettingsPanel() {
             />
           }
         />
+        <SettingsRow
+          {...searchableSetting("compact-status-indicators")}
+          description="Show colored dot only for agent status, hiding labels like “Working” and “Completed.”"
+          control={
+            <Switch
+              checked={clientSettings.compactLegacySidebarStatuses}
+              onCheckedChange={(checked) =>
+                updateClientSettings({ compactLegacySidebarStatuses: Boolean(checked) })
+              }
+              aria-label="Compact status indicators"
+            />
+          }
+        />
       </SettingsSection>
       <SettingsSection
         id="environment-icons"
diff --git a/apps/web/src/components/settings/settingsSearch.test.ts b/apps/web/src/components/settings/settingsSearch.test.ts
index 76bc0b35c083..db92b06a0eee 100644
--- a/apps/web/src/components/settings/settingsSearch.test.ts
+++ b/apps/web/src/components/settings/settingsSearch.test.ts
@@ -46,6 +46,9 @@ describe("searchSettings", () => {
   it("matches normalized title substrings", () => {
     expect(searchSettings("  WORD   WRAP  ", ITEMS).map((item) => item.id)).toEqual(["word-wrap"]);
     expect(searchSettings("glass").map((item) => item.id)).toEqual(["setting-glass-opacity"]);
+    expect(searchSettings("compact status").map((item) => item.id)).toEqual([
+      "compact-status-indicators",
+    ]);
     expect(searchSettings("xyzzy")).toEqual([]);
   });
 
diff --git a/apps/web/src/components/settings/settingsSearch.ts b/apps/web/src/components/settings/settingsSearch.ts
index f59bb20b8cdd..1d94858750c9 100644
--- a/apps/web/src/components/settings/settingsSearch.ts
+++ b/apps/web/src/components/settings/settingsSearch.ts
@@ -260,6 +260,11 @@ export const SETTINGS_SEARCH_ITEMS = [
     title: "Scale legacy sidebar",
     to: "/settings/lastcode",
   },
+  {
+    id: "compact-status-indicators",
+    title: "Compact status indicators",
+    to: "/settings/lastcode",
+  },
   {
     id: "rounded-project-icons",
     title: "Rounded project icons",
diff --git a/docs/user/thread-sidebar.md b/docs/user/thread-sidebar.md
index 4a86d647afda..955387a97216 100644
--- a/docs/user/thread-sidebar.md
+++ b/docs/user/thread-sidebar.md
@@ -65,6 +65,11 @@ LastCode header, Search field, Projects heading, drafts, status notices, and foo
 their standard size. On desktop, **View -> Actual Size**, **Zoom In**, and **Zoom Out** continue to
 zoom the whole application and compose with the legacy sidebar scale.
 
+To keep the same status colors while using less horizontal space, enable **Compact status
+indicators** in **Settings -> LastCode -> Appearance**. Legacy thread rows then show only the
+colored status dot; the full status remains available as a tooltip. This preference is off by
+default.
+
 ## Environment icons in LastCode
 
 Open **Settings -> LastCode -> Environments** to choose the icon color for the primary machine and
diff --git a/packages/contracts/src/settings.test.ts b/packages/contracts/src/settings.test.ts
index 23b585778464..a93d564b40ab 100644
--- a/packages/contracts/src/settings.test.ts
+++ b/packages/contracts/src/settings.test.ts
@@ -115,6 +115,7 @@ describe("ClientSettings environment icons", () => {
 describe("ClientSettings sidebar", () => {
   it("defaults to the current sidebar with automatic merge and inactivity settling", () => {
     const settings = decodeClientSettings({});
+    expect(settings.compactLegacySidebarStatuses).toBe(false);
     expect(settings.legacySidebarEnabled).toBe(false);
     expect(settings.legacySidebarScale).toBe(100);
     expect(settings.sidebarAutoSettleAfterDays).toBe(3);
@@ -138,6 +139,16 @@ describe("ClientSettings sidebar", () => {
     );
   });
 
+  it("preserves compact legacy sidebar status indicators", () => {
+    expect(
+      decodeClientSettings({ compactLegacySidebarStatuses: true }).compactLegacySidebarStatuses,
+    ).toBe(true);
+    expect(
+      decodeClientSettingsPatch({ compactLegacySidebarStatuses: true })
+        .compactLegacySidebarStatuses,
+    ).toBe(true);
+  });
+
   it.each([50, 75, 100])("accepts a legacy sidebar scale within 50..100: %s", (value) => {
     expect(decodeClientSettings({ legacySidebarScale: value }).legacySidebarScale).toBe(value);
     expect(decodeClientSettingsPatch({ legacySidebarScale: value }).legacySidebarScale).toBe(value);
diff --git a/packages/contracts/src/settings.ts b/packages/contracts/src/settings.ts
index d65f63759974..aa09a5e6eb0b 100644
--- a/packages/contracts/src/settings.ts
+++ b/packages/contracts/src/settings.ts
@@ -181,6 +181,9 @@ export const ClientSettingsSchema = Schema.Struct({
   confirmQuit: Schema.Boolean.pipe(Schema.withDecodingDefault(Effect.succeed(true))),
   confirmThreadArchive: Schema.Boolean.pipe(Schema.withDecodingDefault(Effect.succeed(false))),
   confirmThreadDelete: Schema.Boolean.pipe(Schema.withDecodingDefault(Effect.succeed(true))),
+  compactLegacySidebarStatuses: Schema.Boolean.pipe(
+    Schema.withDecodingDefault(Effect.succeed(false)),
+  ),
   dismissedProviderUpdateNotificationKeys: Schema.Array(TrimmedNonEmptyString).pipe(
     Schema.withDecodingDefault(Effect.succeed([])),
   ),
@@ -902,6 +905,7 @@ export const ClientSettingsPatch = Schema.Struct({
   confirmQuit: Schema.optionalKey(Schema.Boolean),
   confirmThreadArchive: Schema.optionalKey(Schema.Boolean),
   confirmThreadDelete: Schema.optionalKey(Schema.Boolean),
+  compactLegacySidebarStatuses: Schema.optionalKey(Schema.Boolean),
   diffIgnoreWhitespace: Schema.optionalKey(Schema.Boolean),
   environmentIdentificationMode: Schema.optionalKey(EnvironmentIdentificationMode),
   environmentIconColors: Schema.optionalKey(Schema.Record(EnvironmentId, EnvironmentIconColor)),