diff --git a/surfsense_web/components/layout/providers/LayoutDataProvider.tsx b/surfsense_web/components/layout/providers/LayoutDataProvider.tsx
index 65143669e..22bbf6015 100644
--- a/surfsense_web/components/layout/providers/LayoutDataProvider.tsx
+++ b/surfsense_web/components/layout/providers/LayoutDataProvider.tsx
@@ -132,8 +132,8 @@ export function LayoutDataProvider({ searchSpaceId, children }: LayoutDataProvid
 
 	const totalUnreadCount = commentsInbox.unreadCount + statusInbox.unreadCount;
 
-	// Whether any documents are currently being uploaded/indexed — drives sidebar spinner
-	const isDocumentsProcessing = useDocumentsProcessing(numericSpaceId);
+	// Document processing status — drives sidebar status indicator (spinner / check / error)
+	const documentsProcessingStatus = useDocumentsProcessing(numericSpaceId);
 
 	// Track seen notification IDs to detect new page_limit_exceeded notifications
 	const seenPageLimitNotifications = useRef<Set<number>>(new Set());
@@ -271,7 +271,7 @@ export function LayoutDataProvider({ searchSpaceId, children }: LayoutDataProvid
 				url: "#documents",
 				icon: SquareLibrary,
 				isActive: isDocumentsSidebarOpen,
-				showSpinner: isDocumentsProcessing,
+				statusIndicator: documentsProcessingStatus,
 			},
 			{
 				title: "Announcements",
@@ -287,7 +287,7 @@ export function LayoutDataProvider({ searchSpaceId, children }: LayoutDataProvid
 			totalUnreadCount,
 			isAnnouncementsSidebarOpen,
 			announcementUnreadCount,
-			isDocumentsProcessing,
+			documentsProcessingStatus,
 		]
 	);
 
diff --git a/surfsense_web/components/layout/types/layout.types.ts b/surfsense_web/components/layout/types/layout.types.ts
index 063a2d38f..720aaecf1 100644
--- a/surfsense_web/components/layout/types/layout.types.ts
+++ b/surfsense_web/components/layout/types/layout.types.ts
@@ -1,4 +1,5 @@
 import type { LucideIcon } from "lucide-react";
+import type { DocumentsProcessingStatus } from "@/hooks/use-documents-processing";
 
 export interface SearchSpace {
 	id: number;
@@ -21,7 +22,7 @@ export interface NavItem {
 	icon: LucideIcon;
 	isActive?: boolean;
 	badge?: string | number;
-	showSpinner?: boolean;
+	statusIndicator?: DocumentsProcessingStatus;
 }
 
 export interface ChatItem {
diff --git a/surfsense_web/components/layout/ui/sidebar/NavSection.tsx b/surfsense_web/components/layout/ui/sidebar/NavSection.tsx
index fa35b16f7..2ab1e6148 100644
--- a/surfsense_web/components/layout/ui/sidebar/NavSection.tsx
+++ b/surfsense_web/components/layout/ui/sidebar/NavSection.tsx
@@ -1,5 +1,6 @@
 "use client";
 
+import { CheckCircle2, CircleAlert } from "lucide-react";
 import { Spinner } from "@/components/ui/spinner";
 import { Tooltip, TooltipContent, TooltipTrigger } from "@/components/ui/tooltip";
 import { cn } from "@/lib/utils";
@@ -11,13 +12,55 @@ interface NavSectionProps {
 	isCollapsed?: boolean;
 }
 
+function StatusBadge({ status }: { status: NavItem["statusIndicator"] }) {
+	if (status === "processing") {
+		return (
+			<span className="absolute top-0.5 right-0.5 inline-flex items-center justify-center h-[14px] w-[14px] rounded-full bg-primary/15">
+				<Spinner size="xs" className="text-primary" />
+			</span>
+		);
+	}
+	if (status === "success") {
+		return (
+			<span className="absolute top-0.5 right-0.5 inline-flex items-center justify-center h-[14px] w-[14px] rounded-full bg-emerald-500/15 animate-in fade-in duration-300">
+				<CheckCircle2 className="h-[10px] w-[10px] text-emerald-500" />
+			</span>
+		);
+	}
+	if (status === "error") {
+		return (
+			<span className="absolute top-0.5 right-0.5 inline-flex items-center justify-center h-[14px] w-[14px] rounded-full bg-destructive/15 animate-in fade-in duration-300">
+				<CircleAlert className="h-[10px] w-[10px] text-destructive" />
+			</span>
+		);
+	}
+	return null;
+}
+
+function StatusIcon({ status, FallbackIcon, className }: {
+	status: NavItem["statusIndicator"];
+	FallbackIcon: NavItem["icon"];
+	className?: string;
+}) {
+	if (status === "processing") {
+		return <Spinner size="sm" className={cn("shrink-0 text-primary", className)} />;
+	}
+	if (status === "success") {
+		return <CheckCircle2 className={cn("shrink-0 text-emerald-500 animate-in fade-in duration-300", className)} />;
+	}
+	if (status === "error") {
+		return <CircleAlert className={cn("shrink-0 text-destructive animate-in fade-in duration-300", className)} />;
+	}
+	return <FallbackIcon className={cn("shrink-0", className)} />;
+}
+
 export function NavSection({ items, onItemClick, isCollapsed = false }: NavSectionProps) {
 	return (
 		<div className={cn("flex flex-col gap-0.5 py-2", isCollapsed && "items-center")}>
 			{items.map((item) => {
 				const Icon = item.icon;
+				const indicator = item.statusIndicator;
 
-				// Add data-joyride for onboarding tour
 				const joyrideAttr =
 					item.title === "Documents" || item.title.toLowerCase().includes("documents")
 						? { "data-joyride": "documents-sidebar" }
@@ -40,10 +83,8 @@ export function NavSection({ items, onItemClick, isCollapsed = false }: NavSecti
 									{...joyrideAttr}
 								>
 									<Icon className="h-4 w-4" />
-									{item.showSpinner ? (
-										<span className="absolute top-0.5 right-0.5 inline-flex items-center justify-center h-[14px] w-[14px] rounded-full bg-primary/15">
-											<Spinner size="xs" className="text-primary" />
-										</span>
+									{indicator && indicator !== "idle" ? (
+										<StatusBadge status={indicator} />
 									) : item.badge ? (
 										<span className="absolute top-0.5 right-0.5 inline-flex items-center justify-center min-w-[14px] h-[14px] px-0.5 rounded-full bg-red-500 text-white text-[9px] font-medium">
 											{item.badge}
@@ -72,11 +113,11 @@ export function NavSection({ items, onItemClick, isCollapsed = false }: NavSecti
 						)}
 						{...joyrideAttr}
 					>
-						{item.showSpinner ? (
-							<Spinner size="sm" className="shrink-0 text-primary" />
-						) : (
-							<Icon className="h-4 w-4 shrink-0" />
-						)}
+						<StatusIcon
+							status={indicator}
+							FallbackIcon={Icon}
+							className="h-4 w-4"
+						/>
 						<span className="flex-1 truncate">{item.title}</span>
 						{item.badge && (
 							<span className="inline-flex items-center justify-center min-w-4 h-4 px-1 rounded-full bg-red-500 text-white text-[10px] font-medium">
diff --git a/surfsense_web/hooks/use-documents-processing.ts b/surfsense_web/hooks/use-documents-processing.ts
index d1788a1b5..f7a09c36a 100644
--- a/surfsense_web/hooks/use-documents-processing.ts
+++ b/surfsense_web/hooks/use-documents-processing.ts
@@ -3,20 +3,23 @@
 import { useEffect, useRef, useState } from "react";
 import { useElectricClient } from "@/lib/electric/context";
 
+export type DocumentsProcessingStatus = "idle" | "processing" | "success" | "error";
+
+const SUCCESS_LINGER_MS = 5000;
+
 /**
- * Returns whether any documents in the search space are currently being
- * uploaded or indexed (status = "pending" | "processing").
- *
- * Covers both manual file uploads (2-phase pattern) and all connector indexers,
- * since both create documents with status = pending before processing.
- *
- * The sync shape uses the same columns as useDocuments so Electric can share
- * the subscription when both hooks are active simultaneously.
+ * Returns the processing status of documents in the search space:
+ *   - "processing" — at least one doc is pending/processing (show spinner)
+ *   - "error"      — nothing processing, but failed docs exist (show red icon)
+ *   - "success"    — just transitioned from processing → all clear (green check, auto-dismisses)
+ *   - "idle"       — nothing noteworthy (show normal icon)
  */
-export function useDocumentsProcessing(searchSpaceId: number | null): boolean {
+export function useDocumentsProcessing(searchSpaceId: number | null): DocumentsProcessingStatus {
 	const electricClient = useElectricClient();
-	const [isProcessing, setIsProcessing] = useState(false);
+	const [status, setStatus] = useState<DocumentsProcessingStatus>("idle");
 	const liveQueryRef = useRef<{ unsubscribe?: () => void } | null>(null);
+	const wasProcessingRef = useRef(false);
+	const successTimerRef = useRef<ReturnType<typeof setTimeout> | null>(null);
 
 	useEffect(() => {
 		if (!searchSpaceId || !electricClient) return;
@@ -76,10 +79,15 @@ export function useDocumentsProcessing(searchSpaceId: number | null): boolean {
 
 				if (!db.live?.query) return;
 
-				const liveQuery = await db.live.query<{ count: number | string }>(
-					`SELECT COUNT(*) as count FROM documents
-					 WHERE search_space_id = $1
-					 AND (status->>'state' = 'pending' OR status->>'state' = 'processing')`,
+				const liveQuery = await db.live.query<{
+					processing_count: number | string;
+					failed_count: number | string;
+				}>(
+					`SELECT
+						SUM(CASE WHEN status->>'state' IN ('pending', 'processing') THEN 1 ELSE 0 END) AS processing_count,
+						SUM(CASE WHEN status->>'state' = 'failed' THEN 1 ELSE 0 END) AS failed_count
+					 FROM documents
+					 WHERE search_space_id = $1`,
 					[spaceId]
 				);
 
@@ -88,10 +96,44 @@ export function useDocumentsProcessing(searchSpaceId: number | null): boolean {
 					return;
 				}
 
-				liveQuery.subscribe((result: { rows: Array<{ count: number | string }> }) => {
-					if (!mounted || !result.rows?.[0]) return;
-					setIsProcessing((Number(result.rows[0].count) || 0) > 0);
-				});
+				liveQuery.subscribe(
+					(result: { rows: Array<{ processing_count: number | string; failed_count: number | string }> }) => {
+						if (!mounted || !result.rows?.[0]) return;
+
+						const processingCount = Number(result.rows[0].processing_count) || 0;
+						const failedCount = Number(result.rows[0].failed_count) || 0;
+
+						if (processingCount > 0) {
+							wasProcessingRef.current = true;
+							if (successTimerRef.current) {
+								clearTimeout(successTimerRef.current);
+								successTimerRef.current = null;
+							}
+							setStatus("processing");
+						} else if (failedCount > 0) {
+							wasProcessingRef.current = false;
+							if (successTimerRef.current) {
+								clearTimeout(successTimerRef.current);
+								successTimerRef.current = null;
+							}
+							setStatus("error");
+						} else if (wasProcessingRef.current) {
+							wasProcessingRef.current = false;
+							setStatus("success");
+							if (successTimerRef.current) {
+								clearTimeout(successTimerRef.current);
+							}
+							successTimerRef.current = setTimeout(() => {
+								if (mounted) {
+									setStatus("idle");
+									successTimerRef.current = null;
+								}
+							}, SUCCESS_LINGER_MS);
+						} else {
+							setStatus("idle");
+						}
+					}
+				);
 
 				liveQueryRef.current = liveQuery;
 			} catch (err) {
@@ -103,6 +145,10 @@ export function useDocumentsProcessing(searchSpaceId: number | null): boolean {
 
 		return () => {
 			mounted = false;
+			if (successTimerRef.current) {
+				clearTimeout(successTimerRef.current);
+				successTimerRef.current = null;
+			}
 			if (liveQueryRef.current) {
 				try {
 					liveQueryRef.current.unsubscribe?.();
@@ -114,5 +160,5 @@ export function useDocumentsProcessing(searchSpaceId: number | null): boolean {
 		};
 	}, [searchSpaceId, electricClient]);
 
-	return isProcessing;
+	return status;
 }