diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index a2d1c4143..bd0508990 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -9,6 +9,8 @@
 - Added `outputPad` to the tool render context ([#10557](https://github.com/earendil-works/pi/pull/10557) by [@rwachtler](https://github.com/rwachtler))
 - Added OpenAI's GPT-6 Luna as a classifier model through the Decisions API, available with `OPENAI_API_KEY` (see [Use classifier models](docs/models.md#use-classifier-models))
 - Added `images` to codemode's `models.classify()` context, so classifiers that accept images, such as GPT-6 Luna, can judge them
+- Added program status reporting with OSC 7501: terminals and agent dashboards that support it see whether Pi is working, blocked on a dialog or login, done, or failed. `PI_PROGRAM_STATUS=1|0` overrides detection (see [Terminal setup](docs/terminal-setup.md#program-status)) ([#10607](https://github.com/earendil-works/pi/issues/10607))
+- Added `aborted` to `agent_settled` session, extension, and JSON events, so integrations can tell a cancelled run from a finished one ([#10607](https://github.com/earendil-works/pi/issues/10607))
 
 ### Changed
 
diff --git a/packages/coding-agent/docs/environment-variables.md b/packages/coding-agent/docs/environment-variables.md
index 50d50481f..f4e484fc8 100644
--- a/packages/coding-agent/docs/environment-variables.md
+++ b/packages/coding-agent/docs/environment-variables.md
@@ -89,6 +89,7 @@ These variables are read by Pi itself:
 | `PI_RADIUS_GATEWAY` | Override the Radius gateway origin used by `/bug` uploads and Radius relay connections |
 | `PI_HARDWARE_CURSOR` | Set to `1` to show the hardware cursor; see [Terminal setup](terminal-setup.md) |
 | `PI_HYPERLINKS` | Override OSC 8 hyperlink detection with `1`, `0`, or `auto` |
+| `PI_PROGRAM_STATUS` | Override OSC 7501 program status detection: `1` always reports, `0` never reports; otherwise Pi reports only after the terminal confirms support. See [Terminal setup](terminal-setup.md#program-status) |
 | `PI_IMAGE_PROTOCOL` | Override inline image detection with `kitty`, `iterm2`, `none`, or `auto` |
 | `PI_TRUE_COLOR` | Override truecolor detection with `1`, `0`, or `auto` |
 | `PI_TUI_ESC_TIMEOUT` | How long to wait after a lone ESC before treating it as Escape, in milliseconds; defaults to `100` over SSH and `10` otherwise. Increase if Alt-key input is misread as Escape |
diff --git a/packages/coding-agent/docs/json.md b/packages/coding-agent/docs/json.md
index d2094a434..ca76d6326 100644
--- a/packages/coding-agent/docs/json.md
+++ b/packages/coding-agent/docs/json.md
@@ -42,7 +42,7 @@ A basic run produces records like these:
 {"type":"message_end","message":{"role":"assistant","...":"..."}}
 {"type":"turn_end","message":{"role":"assistant","...":"..."},"toolResults":[]}
 {"type":"agent_end","messages":[{"...":"..."}],"willRetry":false}
-{"type":"agent_settled"}
+{"type":"agent_settled","aborted":false}
 ```
 
 `agent_end` closes one low-level agent run. Automatic retry, overflow recovery, compaction retry, steering, or follow-up work can still continue. `agent_settled` means Pi has no remaining automatic work for that session-level run.
@@ -53,7 +53,7 @@ A basic run produces records like these:
 |---|---|---|
 | `agent_start` | None | A low-level agent run started. |
 | `agent_end` | `messages`, `willRetry` | That low-level run ended. `messages` contains messages generated by the run. |
-| `agent_settled` | None | Pi will not continue automatically through retries, compaction recovery, or queued messages. |
+| `agent_settled` | `aborted` | Pi will not continue automatically through retries, compaction recovery, or queued messages. `aborted` is `true` when the run ended because it was aborted. |
 | `turn_start` | None | One assistant turn started. |
 | `turn_end` | `message`, `toolResults` | One assistant response and its resulting tool calls finished. |
 
diff --git a/packages/coding-agent/docs/terminal-setup.md b/packages/coding-agent/docs/terminal-setup.md
index 20efd590f..a3c67af07 100644
--- a/packages/coding-agent/docs/terminal-setup.md
+++ b/packages/coding-agent/docs/terminal-setup.md
@@ -217,3 +217,17 @@ Pi automatically detects OSC 8 hyperlinks, inline image protocols, and truecolor
 Settings take precedence over environment variables. An unset value or `auto` preserves automatic detection.
 
 Only force a capability supported by the complete terminal path. Unsupported escape sequences can corrupt rendering. See [Environment Variables](environment-variables.md#pi-process-configuration) and [Settings](settings.md) for the canonical value definitions.
+
+## Program status
+
+Pi reports its state with the [Program Status Protocol (OSC 7501)](https://www.superlogical.com/rex/docs/build/program-status), so terminals and agent dashboards can show whether it is working, waiting for you, done, or failed:
+
+| State | When |
+|---|---|
+| `working` | An agent run or compaction is in progress. The message is the session name. |
+| `blocked` | An extension dialog or login waits for you. The message is the dialog title. |
+| `done` | A run finished. The message is the session name. |
+| `error` | A run ended with an error that is not retried. The message is the first line of the error. |
+| `idle` | Pi started, or you cancelled the run. |
+
+Reports never contain prompts or model output. Pi sends them only after the terminal answers the protocol's support query; tmux and screen do not forward them. Set `PI_PROGRAM_STATUS=1` to send reports without asking, or `PI_PROGRAM_STATUS=0` to turn them off.
diff --git a/packages/coding-agent/src/core/agent-session.ts b/packages/coding-agent/src/core/agent-session.ts
index ebb775b8a..5decccd80 100644
--- a/packages/coding-agent/src/core/agent-session.ts
+++ b/packages/coding-agent/src/core/agent-session.ts
@@ -200,7 +200,7 @@ export type AgentSessionEvent =
 			messages: AgentMessage[];
 			willRetry: boolean;
 	  }
-	| { type: "agent_settled" }
+	| { type: "agent_settled"; aborted: boolean }
 	| {
 			type: "queue_update";
 			steering: readonly string[];
@@ -1080,8 +1080,9 @@ export class AgentSession {
 		this._isAgentRunActive = false;
 		this._isEmittingAgentSettled = true;
 		try {
-			await this._extensionRunner.emit({ type: "agent_settled" });
-			this._emit({ type: "agent_settled" });
+			const aborted = this._agentRunAbortRequested;
+			await this._extensionRunner.emit({ type: "agent_settled", aborted });
+			this._emit({ type: "agent_settled", aborted });
 		} finally {
 			this._isEmittingAgentSettled = false;
 		}
diff --git a/packages/coding-agent/src/core/extensions/types.ts b/packages/coding-agent/src/core/extensions/types.ts
index 278cc3e14..5d65cce98 100644
--- a/packages/coding-agent/src/core/extensions/types.ts
+++ b/packages/coding-agent/src/core/extensions/types.ts
@@ -1004,6 +1004,8 @@ export interface AgentBeforeSettleEvent extends BoundaryState {
 /** Fired after an agent run has fully settled and no automatic retry, compaction, or queued continuation will run. */
 export interface AgentSettledEvent {
 	type: "agent_settled";
+	/** Whether the run ended because it was aborted, for example with Escape. */
+	aborted: boolean;
 }
 
 export type UIPromptKind = "select" | "confirm" | "input" | "editor" | "custom";
diff --git a/packages/coding-agent/src/modes/interactive/interactive-mode.ts b/packages/coding-agent/src/modes/interactive/interactive-mode.ts
index 750af1075..55ea40409 100644
--- a/packages/coding-agent/src/modes/interactive/interactive-mode.ts
+++ b/packages/coding-agent/src/modes/interactive/interactive-mode.ts
@@ -184,6 +184,7 @@ import { UserMessageSelectorComponent } from "./components/user-message-selector
 import { editInExternalEditor } from "./external-editor.ts";
 import { refreshModelCatalogs } from "./model-catalog-refresh.ts";
 import { getModelSearchText } from "./model-search.ts";
+import { type BlockedStatus, ProgramStatusReporter } from "./program-status-reporter.ts";
 import { shareSession } from "./session-share.ts";
 import {
 	getAvailableThemes,
@@ -546,6 +547,12 @@ export class InteractiveMode {
 	// Shutdown state
 	private shutdownRequested = false;
 
+	/** Reports working, blocked, done, and error states to terminals that support OSC 7501. */
+	private readonly programStatus = new ProgramStatusReporter(
+		() => this.ui.terminal,
+		() => this.sessionManager.getSessionName(),
+	);
+
 	/** The `/bug` hint is shown at most once per session so error output stays readable. */
 	private bugReportHintShown = false;
 	private installChangeWarningShown = false;
@@ -990,6 +997,7 @@ export class InteractiveMode {
 		// Start the UI before initializing extensions so session_start handlers can use interactive dialogs
 		this.ui.start();
 		this.isInitialized = true;
+		this.programStatus.report();
 		this.ensurePngTranscoder();
 
 		this.themeController.applyFromSettings();
@@ -2084,6 +2092,7 @@ export class InteractiveMode {
 
 		this.unsubscribe?.();
 		this.unsubscribe = undefined;
+		this.programStatus.reset();
 		this.applyRuntimeSettings();
 
 		if (options.renderBeforeBind) {
@@ -2682,6 +2691,7 @@ export class InteractiveMode {
 		title: string,
 		options: string[],
 		opts?: ExtensionUIDialogOptions,
+		blocked: BlockedStatus = { kind: "question", message: title },
 	): Promise<string | undefined> {
 		return new Promise((resolve) => {
 			if (opts?.signal?.aborted) {
@@ -2715,6 +2725,8 @@ export class InteractiveMode {
 			this.editorContainer.clear();
 			this.editorContainer.addChild(this.extensionSelector);
 			this.ui.setFocus(this.extensionSelector);
+			// Extension dialogs share the editor slot: opening one replaces the status of a displaced one.
+			this.programStatus.setBlocked("extension-dialog", blocked);
 			this.ui.requestRender();
 		});
 	}
@@ -2727,6 +2739,7 @@ export class InteractiveMode {
 		this.editorContainer.clear();
 		this.editorContainer.addChild(this.editor);
 		this.extensionSelector = undefined;
+		this.programStatus.setBlocked("extension-dialog", undefined);
 		this.ui.setFocus(this.editor);
 		this.ui.requestRender();
 	}
@@ -2739,7 +2752,10 @@ export class InteractiveMode {
 		message: string,
 		opts?: ExtensionUIDialogOptions,
 	): Promise<boolean> {
-		const result = await this.showExtensionSelector(`${title}\n${message}`, ["Yes", "No"], opts);
+		const result = await this.showExtensionSelector(`${title}\n${message}`, ["Yes", "No"], opts, {
+			kind: "permission",
+			message: title,
+		});
 		return result === "Yes";
 	}
 
@@ -2791,6 +2807,7 @@ export class InteractiveMode {
 			this.editorContainer.clear();
 			this.editorContainer.addChild(this.extensionInput);
 			this.ui.setFocus(this.extensionInput);
+			this.programStatus.setBlocked("extension-dialog", { kind: "question", message: title });
 			this.ui.requestRender();
 		});
 	}
@@ -2803,6 +2820,7 @@ export class InteractiveMode {
 		this.editorContainer.clear();
 		this.editorContainer.addChild(this.editor);
 		this.extensionInput = undefined;
+		this.programStatus.setBlocked("extension-dialog", undefined);
 		this.ui.setFocus(this.editor);
 		this.ui.requestRender();
 	}
@@ -2833,6 +2851,7 @@ export class InteractiveMode {
 			this.editorContainer.clear();
 			this.editorContainer.addChild(this.extensionEditor);
 			this.ui.setFocus(this.extensionEditor);
+			this.programStatus.setBlocked("extension-dialog", { kind: "question", message: title });
 			this.ui.requestRender();
 		});
 	}
@@ -2844,6 +2863,7 @@ export class InteractiveMode {
 		this.editorContainer.clear();
 		this.editorContainer.addChild(this.editor);
 		this.extensionEditor = undefined;
+		this.programStatus.setBlocked("extension-dialog", undefined);
 		this.ui.setFocus(this.editor);
 		this.ui.requestRender();
 	}
@@ -3389,6 +3409,7 @@ export class InteractiveMode {
 		}
 
 		this.footer.invalidate();
+		this.programStatus.handleEvent(event);
 
 		switch (event.type) {
 			case "agent_start":
@@ -6201,7 +6222,7 @@ export class InteractiveMode {
 		};
 
 		try {
-			await this.loginProvider(dialog, providerId, "api_key");
+			await this.loginProvider(dialog, providerId, providerName, "api_key");
 			restoreEditor();
 			await this.completeProviderAuthentication(providerId, providerName, "api_key", previousModel);
 		} catch (error: unknown) {
@@ -6294,18 +6315,24 @@ export class InteractiveMode {
 	private async loginProvider(
 		dialog: LoginDialogComponent,
 		providerId: string,
+		providerName: string,
 		method: "api_key" | "oauth",
 	): Promise<void> {
-		await this.session.modelRuntime.login(
-			providerId,
-			method,
-			{
-				signal: dialog.signal,
-				prompt: (prompt) => this.showAuthPrompt(dialog, prompt, providerId),
-				notify: (event) => this.notifyAuthDialog(dialog, event),
-			},
-			{ getDeviceId: () => this.settingsManager.getOrCreateDeviceId() },
-		);
+		this.programStatus.setBlocked("login", { kind: "auth", message: `Log in to ${providerName}` });
+		try {
+			await this.session.modelRuntime.login(
+				providerId,
+				method,
+				{
+					signal: dialog.signal,
+					prompt: (prompt) => this.showAuthPrompt(dialog, prompt, providerId),
+					notify: (event) => this.notifyAuthDialog(dialog, event),
+				},
+				{ getDeviceId: () => this.settingsManager.getOrCreateDeviceId() },
+			);
+		} finally {
+			this.programStatus.setBlocked("login", undefined);
+		}
 	}
 
 	private async showLoginDialog(providerId: string, providerName: string, onBack?: () => void): Promise<void> {
@@ -6324,7 +6351,7 @@ export class InteractiveMode {
 		};
 
 		try {
-			await this.loginProvider(dialog, providerId, "oauth");
+			await this.loginProvider(dialog, providerId, providerName, "oauth");
 			restoreEditor();
 			await this.completeProviderAuthentication(providerId, providerName, "oauth", previousModel);
 			if (providerId === RADIUS_PROVIDER_ID) this.offerRadiusMcpServer(providerId, providerName);
diff --git a/packages/coding-agent/src/modes/interactive/program-status-reporter.ts b/packages/coding-agent/src/modes/interactive/program-status-reporter.ts
new file mode 100644
index 000000000..4dac611f9
--- /dev/null
+++ b/packages/coding-agent/src/modes/interactive/program-status-reporter.ts
@@ -0,0 +1,111 @@
+import type { ProgramStatus, Terminal } from "@earendil-works/pi-tui";
+import { APP_NAME } from "../../config.ts";
+import type { AgentSessionEvent } from "../../core/agent-session.ts";
+
+export type BlockedStatus = { kind: NonNullable<ProgramStatus["kind"]>; message: string };
+
+function firstLine(text: string | undefined): string {
+	return text?.split(/\r?\n/, 1)[0]?.trim() || "Error";
+}
+
+/**
+ * Reports interactive-mode state to the terminal (OSC 7501): `working` during agent runs and
+ * compaction, `blocked` while a dialog waits for the user, then `done`, `error`, or `idle` once the run
+ * settles. Messages are limited to the session name, dialog titles, and the first line of errors; prompts
+ * and assistant output are never reported.
+ */
+export class ProgramStatusReporter {
+	private readonly getTerminal: () => Terminal;
+	private readonly getSessionName: () => string | undefined;
+	private runActive = false;
+	private compacting = false;
+	/** Outcome of the current run, reported once it settles. */
+	private runResult: ProgramStatus = { state: "done" };
+	/** Status while no run is active. */
+	private restingStatus: ProgramStatus = { state: "idle" };
+	/** Open dialogs by source, in the order they opened. The most recent one is reported. */
+	private readonly blocked = new Map<string, BlockedStatus>();
+	private lastReport: string | undefined;
+
+	constructor(getTerminal: () => Terminal, getSessionName: () => string | undefined) {
+		this.getTerminal = getTerminal;
+		this.getSessionName = getSessionName;
+	}
+
+	handleEvent(event: AgentSessionEvent): void {
+		switch (event.type) {
+			case "agent_start":
+				this.runActive = true;
+				this.runResult = { state: "done" };
+				break;
+			case "message_end":
+				// The latest response decides the outcome, so a retried error is replaced by its successful retry.
+				if (event.message.role !== "assistant") return;
+				this.runResult =
+					event.message.stopReason === "error"
+						? { state: "error", message: firstLine(event.message.errorMessage) }
+						: { state: "done" };
+				break;
+			case "compaction_start":
+				this.compacting = true;
+				break;
+			case "compaction_end":
+				this.compacting = false;
+				if (this.runActive) {
+					// A failed recovery compaction ends the run unless a later response succeeds.
+					if (event.aborted) this.runResult = { state: "idle" };
+					else if (event.errorMessage) this.runResult = { state: "error", message: firstLine(event.errorMessage) };
+				} else if (event.aborted) {
+					this.restingStatus = { state: "idle" };
+				} else if (event.reason === "manual") {
+					this.restingStatus = event.errorMessage
+						? { state: "error", message: firstLine(event.errorMessage) }
+						: { state: "done" };
+				}
+				break;
+			case "agent_settled":
+				this.runActive = false;
+				this.restingStatus = event.aborted ? { state: "idle" } : this.runResult;
+				break;
+			case "session_info_changed":
+				// The session name is part of working and done reports.
+				break;
+			default:
+				return;
+		}
+		this.report();
+	}
+
+	/** Report `blocked` for a dialog until it is cleared with `undefined`. Reopening a source replaces it. */
+	setBlocked(source: string, status: BlockedStatus | undefined): void {
+		this.blocked.delete(source);
+		if (status) this.blocked.set(source, status);
+		this.report();
+	}
+
+	/** Forget the previous session's run, for example after switching sessions. */
+	reset(): void {
+		this.runActive = false;
+		this.compacting = false;
+		this.runResult = { state: "done" };
+		this.restingStatus = { state: "idle" };
+		this.report();
+	}
+
+	report(): void {
+		const status: ProgramStatus = { ...this.currentStatus(), app: APP_NAME };
+		const key = JSON.stringify(status);
+		if (key === this.lastReport) return;
+		this.lastReport = key;
+		this.getTerminal().setProgramStatus(status);
+	}
+
+	private currentStatus(): ProgramStatus {
+		const blocked = [...this.blocked.values()].at(-1);
+		if (blocked) return { state: "blocked", ...blocked };
+		if (this.compacting) return { state: "working", message: "Compacting context" };
+		const status = this.runActive ? { state: "working" as const } : this.restingStatus;
+		if (status.state === "working" || status.state === "done") return { ...status, message: this.getSessionName() };
+		return status;
+	}
+}
diff --git a/packages/coding-agent/test/edit-tool-no-full-redraw.test.ts b/packages/coding-agent/test/edit-tool-no-full-redraw.test.ts
index 8e6d66f56..72a5034f6 100644
--- a/packages/coding-agent/test/edit-tool-no-full-redraw.test.ts
+++ b/packages/coding-agent/test/edit-tool-no-full-redraw.test.ts
@@ -28,6 +28,7 @@ class FakeTerminal implements Terminal {
 	clearScreen(): void {}
 	setTitle(_title: string): void {}
 	setProgress(_active: boolean): void {}
+	setProgramStatus(): void {}
 
 	get fullClearCount(): number {
 		return this.writes.filter((write) => write.includes("\x1b[2J\x1b[H\x1b[3J")).length;
diff --git a/packages/coding-agent/test/interactive-mode-compaction.test.ts b/packages/coding-agent/test/interactive-mode-compaction.test.ts
index 5b0980ba7..0f35b02b4 100644
--- a/packages/coding-agent/test/interactive-mode-compaction.test.ts
+++ b/packages/coding-agent/test/interactive-mode-compaction.test.ts
@@ -138,6 +138,7 @@ describe("InteractiveMode compaction events", () => {
 		const fakeThis = {
 			isInitialized: true,
 			footer: { invalidate: vi.fn() },
+			programStatus: { handleEvent: vi.fn() },
 			autoCompactionEscapeHandler: undefined as (() => void) | undefined,
 			autoCompactionLoader: undefined,
 			defaultEditor: {},
@@ -201,6 +202,7 @@ describe("InteractiveMode compaction events", () => {
 		const fakeThis = {
 			isInitialized: true,
 			footer: { invalidate: vi.fn() },
+			programStatus: { handleEvent: vi.fn() },
 			activeStatusIndicator: undefined,
 			workingVisible: true,
 			showWorkingStatusIndicator: vi.fn(),
diff --git a/packages/coding-agent/test/program-status-reporter.test.ts b/packages/coding-agent/test/program-status-reporter.test.ts
new file mode 100644
index 000000000..aa09333ac
--- /dev/null
+++ b/packages/coding-agent/test/program-status-reporter.test.ts
@@ -0,0 +1,156 @@
+import type { AssistantMessage } from "@earendil-works/pi-ai";
+import type { ProgramStatus, Terminal } from "@earendil-works/pi-tui";
+import { describe, expect, it } from "vitest";
+import type { AgentSessionEvent } from "../src/core/agent-session.ts";
+import { ProgramStatusReporter } from "../src/modes/interactive/program-status-reporter.ts";
+
+function setup(sessionName?: string) {
+	const reports: ProgramStatus[] = [];
+	const terminal = { setProgramStatus: (status: ProgramStatus) => reports.push(status) } as unknown as Terminal;
+	const session = { name: sessionName };
+	const reporter = new ProgramStatusReporter(
+		() => terminal,
+		() => session.name,
+	);
+	const send = (...events: AgentSessionEvent[]) => {
+		for (const event of events) reporter.handleEvent(event);
+	};
+	const last = () => {
+		const { app: _app, ...status } = reports.at(-1)!;
+		return Object.fromEntries(Object.entries(status).filter(([, value]) => value !== undefined));
+	};
+	return { reporter, reports, session, send, last };
+}
+
+function assistantEnd(stopReason: AssistantMessage["stopReason"], errorMessage?: string): AgentSessionEvent {
+	const message = {
+		role: "assistant",
+		content: [{ type: "text", text: "secret assistant output" }],
+		stopReason,
+		errorMessage,
+	} as AssistantMessage;
+	return { type: "message_end", message };
+}
+
+const settled: AgentSessionEvent = { type: "agent_settled", aborted: false };
+
+const compactionEnd = (
+	reason: "manual" | "threshold" | "overflow",
+	options: { aborted?: boolean; errorMessage?: string } = {},
+): AgentSessionEvent => ({
+	type: "compaction_end",
+	reason,
+	result: undefined,
+	aborted: options.aborted ?? false,
+	willRetry: false,
+	errorMessage: options.errorMessage,
+});
+
+// #10607
+describe("ProgramStatusReporter", () => {
+	it("reports idle, working during a run, and done once it settles", () => {
+		const { reporter, reports, send, last } = setup("Fix login");
+		reporter.report();
+		expect(reports.at(-1)).toEqual({ state: "idle", app: "pi" });
+
+		send({ type: "agent_start" });
+		expect(last()).toEqual({ state: "working", message: "Fix login" });
+
+		send(assistantEnd("toolUse"), assistantEnd("stop"));
+		expect(last()).toEqual({ state: "working", message: "Fix login" });
+
+		send(settled);
+		expect(last()).toEqual({ state: "done", message: "Fix login" });
+		expect(JSON.stringify(reports)).not.toContain("secret assistant output");
+	});
+
+	it("reports only the outcome of the run: retried errors, final errors, and aborts", () => {
+		const { send, last } = setup();
+		send({ type: "agent_start" }, assistantEnd("error", "overloaded"), assistantEnd("stop"), settled);
+		expect(last()).toEqual({ state: "done" });
+
+		send({ type: "agent_start" }, assistantEnd("error", "Invalid API key\n{details}"), settled);
+		expect(last()).toEqual({ state: "error", message: "Invalid API key" });
+
+		send({ type: "agent_start" }, assistantEnd("aborted"), { type: "agent_settled", aborted: true });
+		expect(last()).toEqual({ state: "idle" });
+
+		// Aborted after a successful response, for example in an agent_before_settle hook or a retry delay.
+		send({ type: "agent_start" }, assistantEnd("stop"), { type: "agent_settled", aborted: true });
+		expect(last()).toEqual({ state: "idle" });
+	});
+
+	it("reports a failed recovery compaction as the run's error unless a later response succeeds", () => {
+		const { send, last } = setup();
+		send(
+			{ type: "agent_start" },
+			assistantEnd("length"),
+			{ type: "compaction_start", reason: "overflow" },
+			compactionEnd("overflow", { errorMessage: "Compaction failed\nstack" }),
+			settled,
+		);
+		expect(last()).toEqual({ state: "error", message: "Compaction failed" });
+
+		send(
+			{ type: "agent_start" },
+			{ type: "compaction_start", reason: "threshold" },
+			compactionEnd("threshold", { errorMessage: "Compaction failed" }),
+			assistantEnd("stop"),
+			settled,
+		);
+		expect(last()).toEqual({ state: "done" });
+	});
+
+	it("reports compaction inside a run and the result of a manual compaction", () => {
+		const { send, last } = setup("Session");
+		send({ type: "agent_start" }, { type: "compaction_start", reason: "threshold" });
+		expect(last()).toEqual({ state: "working", message: "Compacting context" });
+		send(compactionEnd("threshold"));
+		expect(last()).toEqual({ state: "working", message: "Session" });
+		send(assistantEnd("stop"), settled);
+
+		send({ type: "compaction_start", reason: "manual" }, compactionEnd("manual"));
+		expect(last()).toEqual({ state: "done", message: "Session" });
+		send({ type: "compaction_start", reason: "manual" }, compactionEnd("manual", { errorMessage: "No model" }));
+		expect(last()).toEqual({ state: "error", message: "No model" });
+		send({ type: "compaction_start", reason: "manual" }, compactionEnd("manual", { aborted: true }));
+		expect(last()).toEqual({ state: "idle" });
+	});
+
+	it("reports the most recent open dialog and the underlying state once all close", () => {
+		const { reporter, send, last } = setup();
+		send({ type: "agent_start" });
+		reporter.setBlocked("extension-selector", { kind: "permission", message: "Allow bash?" });
+		reporter.setBlocked("login", { kind: "auth", message: "Log in to Anthropic" });
+		expect(last()).toEqual({ state: "blocked", kind: "auth", message: "Log in to Anthropic" });
+
+		// The run settles while the selector is still open.
+		reporter.setBlocked("login", undefined);
+		send(assistantEnd("stop"), settled);
+		expect(last()).toEqual({ state: "blocked", kind: "permission", message: "Allow bash?" });
+
+		// Reopening a source replaces its dialog instead of stacking a second one.
+		reporter.setBlocked("extension-selector", { kind: "question", message: "Pick one" });
+		expect(last()).toEqual({ state: "blocked", kind: "question", message: "Pick one" });
+		reporter.setBlocked("extension-selector", undefined);
+		expect(last()).toEqual({ state: "done" });
+	});
+
+	it("sends each status once and follows session name changes", () => {
+		const { reporter, reports, session, send, last } = setup("Old");
+		send({ type: "agent_start" }, { type: "turn_start" } as AgentSessionEvent, assistantEnd("toolUse"));
+		reporter.report();
+		expect(reports).toHaveLength(1);
+
+		session.name = "New";
+		send({ type: "session_info_changed", name: "New" });
+		expect(last()).toEqual({ state: "working", message: "New" });
+	});
+
+	it("returns to idle when the session is replaced", () => {
+		const { reporter, send, last } = setup();
+		send({ type: "agent_start" }, assistantEnd("stop"), settled);
+		reporter.reset();
+		expect(last()).toEqual({ state: "idle" });
+	});
+});
diff --git a/packages/coding-agent/test/suite/agent-session-boundaries.test.ts b/packages/coding-agent/test/suite/agent-session-boundaries.test.ts
index 5115efb74..a4d30c870 100644
--- a/packages/coding-agent/test/suite/agent-session-boundaries.test.ts
+++ b/packages/coding-agent/test/suite/agent-session-boundaries.test.ts
@@ -732,7 +732,8 @@ describe("AgentSession actionable boundaries", () => {
 		expect(harness.sessionManager.getEntries()).toContainEqual(
 			expect.objectContaining({ type: "custom", customType: "committed-after-abort", data: true }),
 		);
-		expect(harness.eventsOfType("agent_settled")).toHaveLength(1);
+		// #10607: settlement reports the abort although the last response succeeded.
+		expect(harness.eventsOfType("agent_settled")).toEqual([{ type: "agent_settled", aborted: true }]);
 	});
 });
 
diff --git a/packages/coding-agent/test/suite/regressions/4167-thinking-toggle-pending-tool-render.test.ts b/packages/coding-agent/test/suite/regressions/4167-thinking-toggle-pending-tool-render.test.ts
index 8d1c2dab0..14a73c8d9 100644
--- a/packages/coding-agent/test/suite/regressions/4167-thinking-toggle-pending-tool-render.test.ts
+++ b/packages/coding-agent/test/suite/regressions/4167-thinking-toggle-pending-tool-render.test.ts
@@ -37,6 +37,7 @@ type RenderSessionContextThis = {
 	pendingTools: Map<string, ToolExecutionComponent>;
 	chatContainer: Container;
 	footer: { invalidate(): void };
+	programStatus: { handleEvent(): void };
 	ui: TUI;
 	settingsManager: {
 		getShowImages(): boolean;
@@ -68,6 +69,7 @@ function createFakeInteractiveModeThis(): RenderSessionContextThis {
 		pendingTools: new Map<string, ToolExecutionComponent>(),
 		chatContainer,
 		footer: { invalidate: vi.fn() },
+		programStatus: { handleEvent: vi.fn() },
 		ui: { requestRender: vi.fn() } as unknown as TUI,
 		settingsManager: {
 			getShowImages: () => false,
diff --git a/packages/coding-agent/test/suite/regressions/5943-session-start-notify.test.ts b/packages/coding-agent/test/suite/regressions/5943-session-start-notify.test.ts
index c73e90216..dd56c1991 100644
--- a/packages/coding-agent/test/suite/regressions/5943-session-start-notify.test.ts
+++ b/packages/coding-agent/test/suite/regressions/5943-session-start-notify.test.ts
@@ -41,6 +41,7 @@ type LoadedResourcesContext = {
 type RebindContext = {
 	unsubscribe?: () => void;
 	applyRuntimeSettings: () => void;
+	programStatus: { reset(): void };
 	renderCurrentSessionState: () => void;
 	bindCurrentSessionExtensions: () => Promise<void>;
 	subscribeToAgent: () => void;
@@ -252,6 +253,7 @@ describe("regression #5943: session_start transient UI", () => {
 		try {
 			const context: RebindContext = {
 				applyRuntimeSettings: () => events.push("apply"),
+				programStatus: { reset: () => {} },
 				renderCurrentSessionState: () => events.push("render"),
 				bindCurrentSessionExtensions: async () => {
 					events.push("bind");
@@ -293,6 +295,7 @@ describe("regression #5943: session_start transient UI", () => {
 		try {
 			const context: RebindContext = {
 				applyRuntimeSettings: () => {},
+				programStatus: { reset: () => {} },
 				renderCurrentSessionState: () => events.push("render"),
 				bindCurrentSessionExtensions: async () => {
 					events.push("bind");
@@ -345,6 +348,7 @@ describe("regression #5943: session_start transient UI", () => {
 		try {
 			const context: RebindContext = {
 				applyRuntimeSettings: () => {},
+				programStatus: { reset: () => {} },
 				renderCurrentSessionState: () => events.push("render"),
 				bindCurrentSessionExtensions: async () => {
 					events.push("bind");
diff --git a/packages/coding-agent/test/suite/regressions/6363-agent-settled-event.test.ts b/packages/coding-agent/test/suite/regressions/6363-agent-settled-event.test.ts
index d31010478..d4edec68a 100644
--- a/packages/coding-agent/test/suite/regressions/6363-agent-settled-event.test.ts
+++ b/packages/coding-agent/test/suite/regressions/6363-agent-settled-event.test.ts
@@ -56,7 +56,7 @@ describe("regression #6363: agent settled event and idle waiting", () => {
 		await harness.session.prompt("test");
 
 		expect(harness.eventsOfType("agent_end").map((event) => event.willRetry)).toEqual([true, false]);
-		expect(harness.eventsOfType("agent_settled")).toHaveLength(1);
+		expect(harness.eventsOfType("agent_settled")).toEqual([{ type: "agent_settled", aborted: false }]);
 		expect(extensionEvents).toEqual(["agent_end", "agent_end", "agent_settled:true"]);
 		expect(publicEvents).toEqual(["agent_settled"]);
 	});
diff --git a/packages/coding-agent/test/suite/regressions/startup-session-rebind-duplicate-subscription.test.ts b/packages/coding-agent/test/suite/regressions/startup-session-rebind-duplicate-subscription.test.ts
index 7b641d7f8..76efdcf5e 100644
--- a/packages/coding-agent/test/suite/regressions/startup-session-rebind-duplicate-subscription.test.ts
+++ b/packages/coding-agent/test/suite/regressions/startup-session-rebind-duplicate-subscription.test.ts
@@ -5,6 +5,7 @@ type RebindContext = {
 	session: object;
 	unsubscribe?: () => void;
 	applyRuntimeSettings: () => void;
+	programStatus: { reset(): void };
 	renderCurrentSessionState: () => void;
 	bindCurrentSessionExtensions: () => Promise<void>;
 	subscribeToAgent: () => void;
@@ -40,6 +41,7 @@ describe("overlapping startup and replacement session rebinds", () => {
 		const context: RebindContext = {
 			session: startupSession,
 			applyRuntimeSettings: () => {},
+			programStatus: { reset: () => {} },
 			renderCurrentSessionState: () => {},
 			bindCurrentSessionExtensions: () => {
 				bindCount += 1;
diff --git a/packages/tui/CHANGELOG.md b/packages/tui/CHANGELOG.md
index d10b963d7..76e80e3ee 100644
--- a/packages/tui/CHANGELOG.md
+++ b/packages/tui/CHANGELOG.md
@@ -2,9 +2,14 @@
 
 ## [Unreleased]
 
+### Breaking Changes
+
+- `Terminal` implementations must provide `setProgramStatus(status)`; a terminal without OSC 7501 support can implement it as a no-op ([#10607](https://github.com/earendil-works/pi/issues/10607))
+
 ### Added
 
 - Added `Box.setPaddingX(...)` and `Text.setPaddingX(...)` ([#10557](https://github.com/earendil-works/pi/pull/10557) by [@rwachtler](https://github.com/rwachtler))
+- Added `Terminal.setProgramStatus()` and `formatProgramStatus()` for the Program Status Protocol (OSC 7501). `ProcessTerminal` asks the terminal for support at startup and sends reports only if it answers; `PI_PROGRAM_STATUS=1|0` overrides detection ([#10607](https://github.com/earendil-works/pi/issues/10607))
 
 ### Fixed
 
diff --git a/packages/tui/src/index.ts b/packages/tui/src/index.ts
index 957221509..a7aa6215c 100644
--- a/packages/tui/src/index.ts
+++ b/packages/tui/src/index.ts
@@ -111,6 +111,8 @@ export { type RenderLatexOptions, renderLatex } from "./latex.ts";
 // Native platform integration
 export { getNativeClipboard, type NativeClipboard } from "./native-platform.ts";
 export { oklabToOkhslLightness } from "./oklab.ts";
+// Program status reporting (OSC 7501)
+export { formatProgramStatus, type ProgramStatus } from "./program-status.ts";
 // Input buffering for batch splitting
 export { StdinBuffer, type StdinBufferEventMap, type StdinBufferOptions } from "./stdin-buffer.ts";
 // Terminal interface and implementations
diff --git a/packages/tui/src/program-status.ts b/packages/tui/src/program-status.ts
new file mode 100644
index 000000000..3b71e268d
--- /dev/null
+++ b/packages/tui/src/program-status.ts
@@ -0,0 +1,53 @@
+/**
+ * Program Status Protocol (OSC 7501): a program tells the terminal whether it is idle, working,
+ * blocked on the user, done, or failed. Only the root record is supported.
+ *
+ * Spec: https://www.superlogical.com/rex/docs/build/program-status
+ */
+
+export interface ProgramStatus {
+	/** `clear` removes the status instead of reporting one. */
+	state: "idle" | "working" | "blocked" | "done" | "error" | "clear";
+	/** Stable program name, `[A-Za-z0-9_.+-]{1,32}`. Other values are omitted. */
+	app?: string;
+	/** What a blocked program waits for. Omitted for other states. */
+	kind?: "permission" | "question" | "auth";
+	/** One human-readable line. Control characters become spaces; longer text is cut to the spec limit. */
+	message?: string;
+}
+
+/** Feature detection query. A supporting terminal replies with the same body. */
+export const PROGRAM_STATUS_QUERY = "\x1b]7501;?\x1b\\";
+
+/** The reply to {@link PROGRAM_STATUS_QUERY}. Later spec revisions may add pairs after the `?`. */
+export function isProgramStatusReply(sequence: string): boolean {
+	return /^\x1b\]7501;\?[^\x07\x1b]*(?:\x07|\x1b\\)$/.test(sequence);
+}
+
+const APP_PATTERN = /^[A-Za-z0-9_.+-]{1,32}$/;
+const CONTROL_CHARACTERS = /[\u0000-\u001f\u007f-\u009f]+/g;
+/** Decoded `msg` limit. Its base64 encoding stays under the 2732-byte encoded limit. */
+const MAX_MESSAGE_BYTES = 2048;
+
+function truncateUtf8(text: string, maxBytes: number): string {
+	if (Buffer.byteLength(text, "utf8") <= maxBytes) return text;
+	let bytes = 0;
+	let end = 0;
+	for (const char of text) {
+		const size = Buffer.byteLength(char, "utf8");
+		if (bytes + size > maxBytes) break;
+		bytes += size;
+		end += char.length;
+	}
+	return text.slice(0, end);
+}
+
+/** Encode a status report. Terminals discard reports whose text contains control characters, so they are replaced. */
+export function formatProgramStatus(status: ProgramStatus): string {
+	const pairs = [`state=${status.state}`];
+	if (status.app !== undefined && APP_PATTERN.test(status.app)) pairs.push(`app=${status.app}`);
+	if (status.state === "blocked" && status.kind) pairs.push(`kind=${status.kind}`);
+	const message = truncateUtf8((status.message ?? "").replace(CONTROL_CHARACTERS, " ").trim(), MAX_MESSAGE_BYTES);
+	if (message) pairs.push(`msg=${Buffer.from(message, "utf8").toString("base64")}`);
+	return `\x1b]7501;${pairs.join(":")}\x1b\\`;
+}
diff --git a/packages/tui/src/terminal.ts b/packages/tui/src/terminal.ts
index cce2dd116..b846869b5 100644
--- a/packages/tui/src/terminal.ts
+++ b/packages/tui/src/terminal.ts
@@ -3,6 +3,12 @@ import * as path from "node:path";
 import { setKittyProtocolActive } from "./keys.ts";
 import { isNativeModifierPressed } from "./native-modifiers.ts";
 import { getNativePlatformHelper } from "./native-platform.ts";
+import {
+	formatProgramStatus,
+	isProgramStatusReply,
+	PROGRAM_STATUS_QUERY,
+	type ProgramStatus,
+} from "./program-status.ts";
 import { StdinBuffer } from "./stdin-buffer.ts";
 
 const TERMINAL_PROGRESS_KEEPALIVE_MS = 1000;
@@ -11,7 +17,8 @@ const TERMINAL_PROGRESS_CLEAR_SEQUENCE = "\x1b]9;4;0\x07";
 const NATIVE_SHIFT_ENTER_SEQUENCE = "\x1b[13;2u";
 const DESIRED_KITTY_KEYBOARD_PROTOCOL_FLAGS = 7;
 const KEYBOARD_PROTOCOL_RESPONSE_FRAGMENT_TIMEOUT_MS = 150;
-const KITTY_KEYBOARD_PROTOCOL_QUERY = `\x1b[>${DESIRED_KITTY_KEYBOARD_PROTOCOL_FLAGS}u\x1b[?u\x1b[c`;
+const KITTY_KEYBOARD_PROTOCOL_QUERY = `\x1b[>${DESIRED_KITTY_KEYBOARD_PROTOCOL_FLAGS}u\x1b[?u`;
+const DEVICE_ATTRIBUTES_QUERY = "\x1b[c";
 
 export type KeyboardProtocolNegotiationSequence =
 	| { type: "kitty-flags"; flags: number }
@@ -110,6 +117,12 @@ export interface Terminal {
 
 	// Progress indicator (OSC 9;4)
 	setProgress(active: boolean): void;
+
+	/**
+	 * Report what the program is doing (OSC 7501). Sent only to terminals that support it; the latest
+	 * status is re-sent when support is confirmed or the terminal restarts.
+	 */
+	setProgramStatus(status: ProgramStatus): void;
 }
 
 const DEFAULT_ESCAPE_TIMEOUT_MS = 10;
@@ -148,6 +161,12 @@ export class ProcessTerminal implements Terminal {
 	private stdinBuffer?: StdinBuffer;
 	private stdinDataHandler?: (data: string) => void;
 	private progressInterval?: ReturnType<typeof setInterval>;
+	/** Latest program status, kept across stop() so start() can report it again. */
+	private programStatus?: ProgramStatus;
+	/** Whether the terminal confirmed OSC 7501 support since the last start(), or `PI_PROGRAM_STATUS=1`. */
+	private programStatusSupported = false;
+	/** The support query was sent and its DA1 sentinel has not arrived yet. */
+	private programStatusQueryPending = false;
 	private writeLogPath = (() => {
 		const env = process.env.PI_TUI_WRITE_LOG || "";
 		if (!env) return "";
@@ -217,6 +236,14 @@ export class ProcessTerminal implements Terminal {
 
 		// Forward individual sequences to the input handler
 		this.stdinBuffer.on("data", (sequence) => {
+			if (isProgramStatusReply(sequence)) {
+				if (this.programStatusQueryPending) {
+					this.programStatusQueryPending = false;
+					this.programStatusSupported = true;
+					this.writeProgramStatus();
+				}
+				return;
+			}
 			const negotiation = this.readKeyboardProtocolNegotiationSequence(sequence);
 			if (negotiation === "pending") {
 				this.scheduleKeyboardProtocolNegotiationBufferFlush();
@@ -254,6 +281,9 @@ export class ProcessTerminal implements Terminal {
 	 * - 1 = disambiguate escape codes
 	 * - 2 = report event types (press/repeat/release)
 	 * - 4 = report alternate keys (shifted key, base layout key)
+	 *
+	 * The OSC 7501 program status query shares the DA sentinel: a terminal that supports it replies
+	 * before DA. `PI_PROGRAM_STATUS=1` or `0` skips the query.
 	 */
 	private queryAndEnableKittyProtocol(): void {
 		this.setupStdinBuffer();
@@ -261,7 +291,12 @@ export class ProcessTerminal implements Terminal {
 		this.keyboardProtocolPushed = true;
 		this.pendingKeyboardProtocolDeviceAttributes += 1;
 		this.clearKeyboardProtocolNegotiationBuffer();
-		process.stdout.write(KITTY_KEYBOARD_PROTOCOL_QUERY);
+		const programStatusOverride = process.env.PI_PROGRAM_STATUS;
+		this.programStatusSupported = programStatusOverride === "1";
+		this.programStatusQueryPending = programStatusOverride !== "1" && programStatusOverride !== "0";
+		const programStatusQuery = this.programStatusQueryPending ? PROGRAM_STATUS_QUERY : "";
+		process.stdout.write(`${KITTY_KEYBOARD_PROTOCOL_QUERY}${programStatusQuery}${DEVICE_ATTRIBUTES_QUERY}`);
+		this.writeProgramStatus();
 	}
 
 	private handleKeyboardProtocolNegotiationSequence(
@@ -271,6 +306,9 @@ export class ProcessTerminal implements Terminal {
 		if (negotiationSequence.type === "device-attributes") {
 			if (this.pendingKeyboardProtocolDeviceAttributes === 0) return false;
 			this.pendingKeyboardProtocolDeviceAttributes -= 1;
+			// The last owed DA answers the latest query, which got no program status reply first. Earlier DA
+			// replies belong to queries from before a restart.
+			if (this.pendingKeyboardProtocolDeviceAttributes === 0) this.programStatusQueryPending = false;
 		}
 		if (negotiationSequence.type === "kitty-flags") {
 			if (negotiationSequence.flags !== 0) {
@@ -430,6 +468,12 @@ export class ProcessTerminal implements Terminal {
 		if (this.clearProgressInterval()) {
 			process.stdout.write(TERMINAL_PROGRESS_CLEAR_SEQUENCE);
 		}
+		// Remove the status while stopped, for example after exit or while suspended. start() reports it again.
+		if (this.programStatusSupported && this.programStatus) {
+			process.stdout.write(formatProgramStatus({ state: "clear" }));
+		}
+		this.programStatusSupported = false;
+		this.programStatusQueryPending = false;
 
 		// Disable bracketed paste mode
 		process.stdout.write("\x1b[?2004l");
@@ -529,6 +573,17 @@ export class ProcessTerminal implements Terminal {
 		process.stdout.write(`\x1b]0;${title}\x07`);
 	}
 
+	setProgramStatus(status: ProgramStatus): void {
+		this.programStatus = status.state === "clear" ? undefined : status;
+		if (this.programStatusSupported) process.stdout.write(formatProgramStatus(status));
+	}
+
+	private writeProgramStatus(): void {
+		if (this.programStatusSupported && this.programStatus) {
+			process.stdout.write(formatProgramStatus(this.programStatus));
+		}
+	}
+
 	setProgress(active: boolean): void {
 		if (active) {
 			// OSC 9;4;3 - indeterminate progress
diff --git a/packages/tui/test/alt-screen-large-transcript-bench.ts b/packages/tui/test/alt-screen-large-transcript-bench.ts
index 03df87543..de6a7958c 100644
--- a/packages/tui/test/alt-screen-large-transcript-bench.ts
+++ b/packages/tui/test/alt-screen-large-transcript-bench.ts
@@ -67,6 +67,7 @@ class NullTerminal implements Terminal {
 	clearScreen(): void {}
 	setTitle(_title: string): void {}
 	setProgress(_active: boolean): void {}
+	setProgramStatus(): void {}
 }
 
 const userMarkdown = [
diff --git a/packages/tui/test/program-status.test.ts b/packages/tui/test/program-status.test.ts
new file mode 100644
index 000000000..a2a164c00
--- /dev/null
+++ b/packages/tui/test/program-status.test.ts
@@ -0,0 +1,51 @@
+import assert from "node:assert";
+import { describe, it } from "node:test";
+import { formatProgramStatus, isProgramStatusReply } from "../src/program-status.ts";
+
+function decodeMessage(sequence: string): string | undefined {
+	const message = /:msg=([A-Za-z0-9+/=]*)/.exec(sequence)?.[1];
+	return message === undefined ? undefined : Buffer.from(message, "base64").toString("utf8");
+}
+
+// #10607
+describe("formatProgramStatus", () => {
+	it("encodes state, app, kind, and a base64 message", () => {
+		assert.equal(
+			formatProgramStatus({ state: "blocked", app: "pi", kind: "permission", message: "Allow bash?" }),
+			`\x1b]7501;state=blocked:app=pi:kind=permission:msg=${Buffer.from("Allow bash?").toString("base64")}\x1b\\`,
+		);
+		assert.equal(formatProgramStatus({ state: "clear" }), "\x1b]7501;state=clear\x1b\\");
+	});
+
+	it("omits kind outside blocked, invalid app names, and empty messages", () => {
+		assert.equal(
+			formatProgramStatus({ state: "working", app: "my app", kind: "auth", message: " \n " }),
+			"\x1b]7501;state=working\x1b\\",
+		);
+		assert.match(formatProgramStatus({ state: "idle", app: "a".repeat(32) }), /:app=a{32}\x1b/);
+		assert.doesNotMatch(formatProgramStatus({ state: "idle", app: "a".repeat(33) }), /app=/);
+	});
+
+	it("replaces control characters, which make terminals discard the report", () => {
+		const sequence = formatProgramStatus({ state: "error", message: "first\nsecond\x1b[31m\u009bthird\t" });
+		assert.equal(decodeMessage(sequence), "first second [31m third");
+	});
+
+	it("cuts long messages at a UTF-8 boundary within the spec limits", () => {
+		const sequence = formatProgramStatus({ state: "working", app: "pi", message: "é".repeat(2000) });
+		const message = decodeMessage(sequence)!;
+		assert.equal(message, "é".repeat(1024));
+		assert.ok(Buffer.byteLength(message) <= 2048);
+		assert.ok(sequence.length <= 4096);
+	});
+});
+
+describe("isProgramStatusReply", () => {
+	it("accepts the query echo with either terminator and future pairs", () => {
+		assert.equal(isProgramStatusReply("\x1b]7501;?\x1b\\"), true);
+		assert.equal(isProgramStatusReply("\x1b]7501;?\x07"), true);
+		assert.equal(isProgramStatusReply("\x1b]7501;?version=2\x1b\\"), true);
+		assert.equal(isProgramStatusReply("\x1b]7501;state=idle\x1b\\"), false);
+		assert.equal(isProgramStatusReply("\x1b]11;rgb:0000/0000/0000\x07"), false);
+	});
+});
diff --git a/packages/tui/test/render-churn-bench.ts b/packages/tui/test/render-churn-bench.ts
index 103c9561b..6bf712560 100644
--- a/packages/tui/test/render-churn-bench.ts
+++ b/packages/tui/test/render-churn-bench.ts
@@ -57,6 +57,7 @@ class NullTerminal implements Terminal {
 	clearScreen(): void {}
 	setTitle(_title: string): void {}
 	setProgress(_active: boolean): void {}
+	setProgramStatus(): void {}
 }
 
 /** Editor stand-in: caches lines per (text, width), re-renders when text changes. */
diff --git a/packages/tui/test/terminal-colors.test.ts b/packages/tui/test/terminal-colors.test.ts
index 1f2b7013f..5977ac881 100644
--- a/packages/tui/test/terminal-colors.test.ts
+++ b/packages/tui/test/terminal-colors.test.ts
@@ -65,6 +65,7 @@ class TestTerminal implements Terminal {
 	setTitle(_title: string): void {}
 
 	setProgress(_active: boolean): void {}
+	setProgramStatus(): void {}
 
 	sendInput(data: string): void {
 		this.inputHandler?.(data);
diff --git a/packages/tui/test/terminal.test.ts b/packages/tui/test/terminal.test.ts
index 79f4410f3..437994a38 100644
--- a/packages/tui/test/terminal.test.ts
+++ b/packages/tui/test/terminal.test.ts
@@ -132,7 +132,7 @@ describe("ProcessTerminal Kitty keyboard protocol negotiation", () => {
 	it("queries Kitty mode before enabling modifyOtherKeys fallback", () => {
 		const harness = setupNegotiation();
 		try {
-			assert.equal(harness.writes[0], "\x1b[>7u\x1b[?u\x1b[c");
+			assert.equal(harness.writes[0], "\x1b[>7u\x1b[?u\x1b]7501;?\x1b\\\x1b[c");
 			assert.equal(harness.writes.includes("\x1b[>4;2m"), false);
 			assert.equal(harness.terminal.kittyProtocolActive, false);
 		} finally {
@@ -233,6 +233,129 @@ describe("ProcessTerminal Kitty keyboard protocol negotiation", () => {
 		}
 	});
 
+	// #10607
+	describe("program status (OSC 7501)", () => {
+		const working = "\x1b]7501;state=working:app=pi\x1b\\";
+		const clear = "\x1b]7501;state=clear\x1b\\";
+
+		function withOverride(value: string | undefined, fn: () => void): void {
+			const previous = process.env.PI_PROGRAM_STATUS;
+			if (value === undefined) delete process.env.PI_PROGRAM_STATUS;
+			else process.env.PI_PROGRAM_STATUS = value;
+			try {
+				fn();
+			} finally {
+				if (previous === undefined) delete process.env.PI_PROGRAM_STATUS;
+				else process.env.PI_PROGRAM_STATUS = previous;
+			}
+		}
+
+		it("reports the latest status once the terminal answers the query before DA", () => {
+			withOverride(undefined, () => {
+				const harness = setupNegotiation();
+				try {
+					harness.terminal.setProgramStatus({ state: "working", app: "pi" });
+					assert.equal(harness.writes.includes(working), false);
+
+					harness.send("\x1b]7501;?\x1b\\");
+					assert.equal(harness.getInput(), undefined);
+					assert.equal(harness.writes.filter((write) => write === working).length, 1);
+					harness.send("\x1b[?62;4;52c");
+
+					harness.terminal.setProgramStatus({ state: "done" });
+					assert.equal(harness.writes.at(-1), "\x1b]7501;state=done\x1b\\");
+				} finally {
+					harness.cleanup();
+				}
+			});
+		});
+
+		it("reports nothing when DA arrives first and swallows late replies", () => {
+			withOverride(undefined, () => {
+				const harness = setupNegotiation();
+				try {
+					harness.send("\x1b[?62;4;52c");
+					harness.send("\x1b]7501;?\x07");
+					harness.terminal.setProgramStatus({ state: "working", app: "pi" });
+
+					assert.equal(harness.getInput(), undefined);
+					assert.equal(
+						harness.writes.some((write) => write.startsWith("\x1b]7501;state=")),
+						false,
+					);
+				} finally {
+					harness.cleanup();
+				}
+			});
+		});
+
+		it("skips the query when PI_PROGRAM_STATUS is set", () => {
+			withOverride("1", () => {
+				const harness = setupNegotiation();
+				try {
+					assert.equal(harness.writes[0], "\x1b[>7u\x1b[?u\x1b[c");
+					harness.terminal.setProgramStatus({ state: "working", app: "pi" });
+					assert.equal(harness.writes.at(-1), working);
+				} finally {
+					harness.cleanup();
+				}
+			});
+			withOverride("0", () => {
+				const harness = setupNegotiation();
+				try {
+					assert.equal(harness.writes[0], "\x1b[>7u\x1b[?u\x1b[c");
+					harness.terminal.setProgramStatus({ state: "working", app: "pi" });
+					assert.equal(harness.writes.includes(working), false);
+				} finally {
+					harness.cleanup();
+				}
+			});
+		});
+
+		it("does not let a DA reply from before a restart end the new query", () => {
+			withOverride(undefined, () => {
+				const harness = setupNegotiation();
+				try {
+					harness.terminal.setProgramStatus({ state: "working", app: "pi" });
+					harness.terminal.stop();
+					(harness.terminal as unknown as { queryAndEnableKittyProtocol(): void }).queryAndEnableKittyProtocol();
+
+					// The first start's replies arrive late: its DA, then the second start's reply and DA.
+					harness.send("\x1b[?62;4;52c");
+					harness.send("\x1b]7501;?\x1b\\");
+					harness.send("\x1b[?62;4;52c");
+					assert.equal(harness.writes.at(-1), working);
+					assert.equal(harness.getInput(), undefined);
+				} finally {
+					harness.cleanup();
+				}
+			});
+		});
+
+		it("clears the status on stop and reports it again after restart", () => {
+			withOverride(undefined, () => {
+				const harness = setupNegotiation();
+				try {
+					harness.terminal.setProgramStatus({ state: "working", app: "pi" });
+					harness.send("\x1b]7501;?\x1b\\");
+					harness.terminal.stop();
+					assert.ok(harness.writes.includes(clear));
+
+					// Stopped: nothing is written until the restarted terminal confirms support again.
+					const writesBeforeRestart = harness.writes.length;
+					harness.terminal.setProgramStatus({ state: "working", app: "pi" });
+					assert.equal(harness.writes.length, writesBeforeRestart);
+
+					(harness.terminal as unknown as { queryAndEnableKittyProtocol(): void }).queryAndEnableKittyProtocol();
+					harness.send("\x1b]7501;?\x1b\\");
+					assert.equal(harness.writes.at(-1), working);
+				} finally {
+					harness.cleanup();
+				}
+			});
+		});
+	});
+
 	it("replays buffered CSI-prefix input when it is not a Kitty response", () => {
 		mock.timers.enable({ apis: ["setTimeout"] });
 		const harness = setupNegotiation();
diff --git a/packages/tui/test/tui-render.test.ts b/packages/tui/test/tui-render.test.ts
index 67e0f3e47..ae6e7bb68 100644
--- a/packages/tui/test/tui-render.test.ts
+++ b/packages/tui/test/tui-render.test.ts
@@ -60,6 +60,7 @@ class BoundedWriteTerminal implements Terminal {
 	clearScreen(): void {}
 	setTitle(_title: string): void {}
 	setProgress(_active: boolean): void {}
+	setProgramStatus(): void {}
 }
 
 class LoggingVirtualTerminal extends VirtualTerminal {
diff --git a/packages/tui/test/virtual-terminal.ts b/packages/tui/test/virtual-terminal.ts
index 4e067f4e5..28865d18e 100644
--- a/packages/tui/test/virtual-terminal.ts
+++ b/packages/tui/test/virtual-terminal.ts
@@ -101,6 +101,7 @@ export class VirtualTerminal implements Terminal {
 	}
 
 	setProgress(_active: boolean): void {}
+	setProgramStatus(): void {}
 
 	// Test-specific methods not in Terminal interface