diff --git a/src/components/chat/view/ChatInterface.tsx b/src/components/chat/view/ChatInterface.tsx
index c4a3d202..103dea81 100644
--- a/src/components/chat/view/ChatInterface.tsx
+++ b/src/components/chat/view/ChatInterface.tsx
@@ -184,7 +184,7 @@ function ChatInterface({
     handlePermissionDecision,
     handleGrantToolPermission,
     handleInputFocusChange,
-    isInputFocused: _isInputFocused,
+    isInputFocused,
     commandModalPayload,
     closeCommandModal,
     showCostModal,
@@ -424,6 +424,7 @@ function ChatInterface({
           onTextareaPaste={handlePaste}
           onTextareaScrollSync={syncInputOverlayScroll}
           onTextareaInput={handleTextareaInput}
+          isInputFocused={isInputFocused}
           onInputFocusChange={handleInputFocusChange}
           placeholder={t('input.placeholder', {
             provider:
diff --git a/src/components/chat/view/subcomponents/ActivityIndicator.tsx b/src/components/chat/view/subcomponents/ActivityIndicator.tsx
index 810d2a2e..f235c2fb 100644
--- a/src/components/chat/view/subcomponents/ActivityIndicator.tsx
+++ b/src/components/chat/view/subcomponents/ActivityIndicator.tsx
@@ -7,6 +7,7 @@ import type { SessionActivity } from '../../../../hooks/useSessionProtection';
 type ActivityIndicatorProps = {
   activity: SessionActivity | null;
   onAbort?: () => void;
+  isInputFocused?: boolean;
 };
 
 const ACTION_KEYS = [
@@ -18,6 +19,7 @@ const ACTION_KEYS = [
   'claudeStatus.actions.reasoning',
 ];
 const DEFAULT_ACTION_WORDS = ['Thinking', 'Processing', 'Analyzing', 'Working', 'Computing', 'Reasoning'];
+const EXIT_ANIMATION_MS = 220;
 
 /**
  * Minimal response-in-progress indicator, in the spirit of the inline status
@@ -26,11 +28,31 @@ const DEFAULT_ACTION_WORDS = ['Thinking', 'Processing', 'Analyzing', 'Working',
  * session has an entry in the processing map; it disappears the instant that
  * entry is removed.
  */
-export default function ActivityIndicator({ activity, onAbort }: ActivityIndicatorProps) {
+export default function ActivityIndicator({ activity, onAbort, isInputFocused = false }: ActivityIndicatorProps) {
   const { t } = useTranslation('chat');
-  const startedAt = activity?.startedAt ?? null;
+  const [renderedActivity, setRenderedActivity] = useState<SessionActivity | null>(activity);
+  const [isExiting, setIsExiting] = useState(false);
+  const startedAt = renderedActivity?.startedAt ?? null;
   const [elapsedSeconds, setElapsedSeconds] = useState(0);
 
+  useEffect(() => {
+    if (activity) {
+      setRenderedActivity(activity);
+      setIsExiting(false);
+      return;
+    }
+
+    if (!renderedActivity) return;
+
+    setIsExiting(true);
+    const timer = setTimeout(() => {
+      setRenderedActivity(null);
+      setIsExiting(false);
+    }, EXIT_ANIMATION_MS);
+
+    return () => clearTimeout(timer);
+  }, [activity, renderedActivity]);
+
   useEffect(() => {
     if (startedAt === null) return;
     const update = () => setElapsedSeconds(Math.max(0, Math.floor((Date.now() - startedAt) / 1000)));
@@ -39,10 +61,10 @@ export default function ActivityIndicator({ activity, onAbort }: ActivityIndicat
     return () => clearInterval(timer);
   }, [startedAt]);
 
-  if (!activity) return null;
+  if (!renderedActivity) return null;
 
   const actionWords = ACTION_KEYS.map((key, i) => t(key, { defaultValue: DEFAULT_ACTION_WORDS[i] }));
-  const label = (activity.statusText || actionWords[Math.floor(elapsedSeconds / 4) % actionWords.length])
+  const label = (renderedActivity.statusText || actionWords[Math.floor(elapsedSeconds / 4) % actionWords.length])
     .replace(/\.+$/, '');
 
   const minutes = Math.floor(elapsedSeconds / 60);
@@ -50,19 +72,31 @@ export default function ActivityIndicator({ activity, onAbort }: ActivityIndicat
   const elapsedLabel = minutes < 1
     ? t('claudeStatus.elapsed.seconds', { count: seconds, defaultValue: '{{count}}s' })
     : t('claudeStatus.elapsed.minutesSeconds', { minutes, seconds, defaultValue: '{{minutes}}m {{seconds}}s' });
+  const tabSurfaceClassName = [
+    'chat-activity-tab inline-flex h-8 items-center rounded-b-none rounded-t-lg border border-b-0 bg-card px-3 text-xs transition-all duration-200',
+    isInputFocused
+      ? 'border-primary/30 shadow-[0_-1px_2px_hsl(var(--foreground)/0.08),1px_0_2px_hsl(var(--foreground)/0.06),-1px_0_2px_hsl(var(--foreground)/0.06)]'
+      : 'border-border/50 shadow-[0_-1px_1px_hsl(var(--foreground)/0.04),1px_0_1px_hsl(var(--foreground)/0.03),-1px_0_1px_hsl(var(--foreground)/0.03)]',
+  ].join(' ');
 
   return (
-    <div className="animate-in fade-in mb-2 duration-300">
-      <div className="flex items-center gap-2 px-1">
-        <span className="h-1.5 w-1.5 shrink-0 animate-pulse rounded-full bg-primary" aria-hidden />
-        <Shimmer className="text-xs font-medium">{`${label}…`}</Shimmer>
-        <span className="text-xs tabular-nums text-muted-foreground/60">{elapsedLabel}</span>
+    <div
+      className={`pointer-events-none bg-transparent ${
+        isExiting ? 'chat-activity-exit' : 'chat-activity-enter'
+      }`}
+    >
+      <div className="flex items-end justify-between gap-2">
+        <div className={`${tabSurfaceClassName} gap-2`}>
+          <span className="h-1.5 w-1.5 shrink-0 animate-pulse rounded-full bg-primary" aria-hidden />
+          <Shimmer className="font-medium">{`${label}…`}</Shimmer>
+          <span className="tabular-nums text-muted-foreground/60">{elapsedLabel}</span>
+        </div>
 
-        {activity.canInterrupt && onAbort && (
+        {renderedActivity.canInterrupt && onAbort && (
           <button
             type="button"
             onClick={onAbort}
-            className="ml-auto flex items-center gap-1.5 rounded-md px-2 py-0.5 text-xs text-muted-foreground transition-colors hover:bg-destructive/10 hover:text-destructive"
+            className={`${tabSurfaceClassName} pointer-events-auto gap-1.5 text-muted-foreground hover:bg-card hover:text-destructive`}
             aria-label={t('claudeStatus.stop', { defaultValue: 'Stop' })}
           >
             <svg className="h-2.5 w-2.5 fill-current" viewBox="0 0 24 24" aria-hidden>
diff --git a/src/components/chat/view/subcomponents/ChatComposer.tsx b/src/components/chat/view/subcomponents/ChatComposer.tsx
index 1b099c3c..02eeaac6 100644
--- a/src/components/chat/view/subcomponents/ChatComposer.tsx
+++ b/src/components/chat/view/subcomponents/ChatComposer.tsx
@@ -98,6 +98,7 @@ interface ChatComposerProps {
   onTextareaPaste: (event: ClipboardEvent<HTMLTextAreaElement>) => void;
   onTextareaScrollSync: (target: HTMLTextAreaElement) => void;
   onTextareaInput: (event: FormEvent<HTMLTextAreaElement>) => void;
+  isInputFocused?: boolean;
   onInputFocusChange?: (focused: boolean) => void;
   placeholder: string;
   isTextareaExpanded: boolean;
@@ -149,6 +150,7 @@ export default function ChatComposer({
   onTextareaPaste,
   onTextareaScrollSync,
   onTextareaInput,
+  isInputFocused = false,
   onInputFocusChange,
   placeholder,
   isTextareaExpanded,
@@ -195,12 +197,13 @@ export default function ChatComposer({
 
   // Hide the thinking/status bar while any permission request is pending
   const hasPendingPermissions = pendingPermissionRequests.length > 0;
+  const hasActivityIndicator = Boolean(activity && !hasPendingPermissions);
 
   return (
-    <div className="chat-composer-shell flex-shrink-0 px-2 pb-2 pt-0 sm:px-4 sm:pb-4 md:px-4 md:pb-6">
+    <div className="chat-composer-shell relative flex-shrink-0 px-2 pb-2 pt-0 sm:px-4 sm:pb-4 md:px-4 md:pb-6">
       {!hasPendingPermissions && (
-        <div className="mx-auto max-w-3xl">
-          <ActivityIndicator activity={activity} onAbort={onAbortSession} />
+        <div className="pointer-events-none absolute bottom-full left-1/2 z-10 w-[calc(100%-1rem)] max-w-3xl -translate-x-1/2 translate-y-px bg-transparent sm:w-[calc(100%-2rem)]">
+          <ActivityIndicator activity={activity} onAbort={onAbortSession} isInputFocused={isInputFocused} />
         </div>
       )}
 
@@ -255,7 +258,10 @@ export default function ChatComposer({
         <PromptInput
           onSubmit={onSubmit as (event: FormEvent<HTMLFormElement>) => void}
           status={isLoading ? 'streaming' : 'ready'}
-          className={isTextareaExpanded ? 'chat-input-expanded' : ''}
+          className={[
+            isTextareaExpanded ? 'chat-input-expanded' : '',
+            hasActivityIndicator ? 'rounded-t-none' : '',
+          ].filter(Boolean).join(' ')}
           {...getRootProps()}
         >
           {isDragActive && (
diff --git a/src/index.css b/src/index.css
index 195ae1d3..58ef2874 100644
--- a/src/index.css
+++ b/src/index.css
@@ -568,7 +568,23 @@
   }
 
   .chat-composer-shell {
-    contain: layout style paint;
+    contain: layout style;
+  }
+
+  .chat-activity-enter {
+    animation: chat-activity-enter 320ms cubic-bezier(0.22, 1, 0.36, 1) both;
+    transform-origin: bottom center;
+    will-change: transform, opacity, filter;
+  }
+
+  .chat-activity-exit {
+    animation: chat-activity-exit 220ms cubic-bezier(0.4, 0, 1, 1) both;
+    transform-origin: bottom center;
+    will-change: transform, opacity, filter;
+  }
+
+  .chat-activity-tab {
+    clip-path: inset(-8px -8px 0 -8px);
   }
 
   .chat-message {
@@ -947,6 +963,37 @@
     animation: settings-fade-in 150ms ease-out;
   }
 
+  @keyframes chat-activity-enter {
+    from {
+      opacity: 0;
+      filter: blur(3px);
+      transform: translateY(18px) scaleY(0.92);
+    }
+    65% {
+      opacity: 1;
+      filter: blur(0);
+      transform: translateY(-2px) scaleY(1.01);
+    }
+    to {
+      opacity: 1;
+      filter: blur(0);
+      transform: translateY(0) scaleY(1);
+    }
+  }
+
+  @keyframes chat-activity-exit {
+    from {
+      opacity: 1;
+      filter: blur(0);
+      transform: translateY(0) scaleY(1);
+    }
+    to {
+      opacity: 0;
+      filter: blur(2px);
+      transform: translateY(14px) scaleY(0.96);
+    }
+  }
+
   /* Search result highlight flash */
   .search-highlight-flash {
     animation: search-flash 4s ease-out;