diff --git a/apps/x/ANALYTICS.md b/apps/x/ANALYTICS.md
index c819a5a4..200a7bf7 100644
--- a/apps/x/ANALYTICS.md
+++ b/apps/x/ANALYTICS.md
@@ -101,7 +101,7 @@ All in `apps/renderer/src/lib/analytics.ts`:
 
 The desktop client's own updates — distinct from the in-app apps feature, which owns `app_updated`:
 
-- `update_prompted` — renderer (`apps/renderer/src/lib/analytics.ts`): the restart-to-update card was shown for a staged update
+- `update_prompted` — renderer (`apps/renderer/src/lib/analytics.ts`): the restart-to-update titlebar chip was shown for a staged update
 - `update_restarted` — main (`apps/main/src/updater.ts`), `{ from, to? }`: the user clicked restart-to-update (`to` is Windows-only; Squirrel.Mac doesn't report the release name)
 - `update_failed` — main (`apps/main/src/updater.ts`), `{ message }`: the auto-updater errored. Network/offline errors are excluded — they go to the soft `offline` state and are not captured (a user offline for hours would otherwise emit one per periodic check)
 - `client_updated` — main (`apps/main/src/ipc.ts`), `{ from, to }`: first launch on a newer version (fires once per update, whatever the restart path; downgrades restamp silently and don't fire)
diff --git a/apps/x/apps/main/src/updater.ts b/apps/x/apps/main/src/updater.ts
index 736448dd..063845ac 100644
--- a/apps/x/apps/main/src/updater.ts
+++ b/apps/x/apps/main/src/updater.ts
@@ -81,8 +81,8 @@ function showReadyBadge(): void {
 /**
  * Initialize auto-update. Replaces update-electron-app's `notifyUser` native
  * dialog with our own state machine: events are forwarded to the renderer
- * (updater:status), which shows the non-modal "restart to update" card at a
- * moment the user isn't busy.
+ * (updater:status), which shows a non-modal "Restart to update" chip in the
+ * titlebar once the update is staged.
  */
 export function initUpdater(): void {
   const version = app.getVersion();
diff --git a/apps/x/apps/renderer/src/App.tsx b/apps/x/apps/renderer/src/App.tsx
index 899873ed..f94b3830 100644
--- a/apps/x/apps/renderer/src/App.tsx
+++ b/apps/x/apps/renderer/src/App.tsx
@@ -78,7 +78,7 @@ import { Tooltip, TooltipContent, TooltipProvider, TooltipTrigger } from "@/comp
 import { Dialog, DialogContent, DialogHeader, DialogTitle, DialogDescription, DialogFooter } from "@/components/ui/dialog"
 import { Button } from "@/components/ui/button"
 import { Toaster } from "@/components/ui/sonner"
-import { UpdateReadyNotice } from "@/components/update-notice"
+import { UpdateIndicator } from "@/components/update-indicator"
 import { BillingErrorDialog } from "@/components/billing-error-dialog"
 import { matchBillingError, type BillingErrorMatch } from "@/lib/billing-error"
 import { dispatchCreditExhausted, dispatchCreditReplenished } from "@/lib/credit-status"
@@ -6293,6 +6293,7 @@ function App() {
                     <TooltipContent side="bottom">New chat</TooltipContent>
                   </Tooltip>
                 )}
+                <UpdateIndicator />
                 <CaffeinateIndicator />
                 {/* Trailing layout control. Always mounted (just toggled invisible
                     when inactive) so its -webkit-app-region:no-drag rect is stable —
@@ -7044,8 +7045,6 @@ function App() {
                 getLevel={tts.getLevel}
               />
             )}
-            {/* Restart-to-update card; deferred while a call or turn is active */}
-            <UpdateReadyNotice busy={inCall || activeIsProcessing} />
             {/* Rendered last so its no-drag region paints over the sidebar drag region */}
             <FixedSidebarToggle
               leftInsetPx={isMac ? MACOS_TRAFFIC_LIGHTS_RESERVED_PX : 0}
diff --git a/apps/x/apps/renderer/src/components/update-indicator.tsx b/apps/x/apps/renderer/src/components/update-indicator.tsx
new file mode 100644
index 00000000..9b9f22e3
--- /dev/null
+++ b/apps/x/apps/renderer/src/components/update-indicator.tsx
@@ -0,0 +1,127 @@
+import { useEffect, useRef, useState } from "react"
+import { LoaderIcon, RefreshCw, X } from "lucide-react"
+import { Tooltip, TooltipContent, TooltipTrigger } from "@/components/ui/tooltip"
+import { cn } from "@/lib/utils"
+import { updatePrompted } from "@/lib/analytics"
+
+type UpdaterStatus = {
+  state: string
+  newVersion?: string
+  snoozedUntil?: number
+}
+
+/**
+ * Titlebar update indicator (Zed-style): invisible while idle, a spinner
+ * while an update downloads, and a "Restart to update" chip once it's staged.
+ * Clicking the chip restarts into the new version; the small × snoozes the
+ * chip for 24h (owned by main — see updater.ts snoozeUpdateNotice — so it
+ * survives window reloads and reopens).
+ *
+ * Both buttons stay mounted and are toggled invisible when inactive — a
+ * freshly-mounted no-drag button inside the drag-region header has its first
+ * click swallowed by the window drag (see CaffeinateIndicator).
+ */
+export function UpdateIndicator() {
+  const [status, setStatus] = useState<UpdaterStatus | null>(null)
+  // Bumped when a snooze expires so the chip re-appears without new IPC.
+  const [now, setNow] = useState(() => Date.now())
+  const promptedRef = useRef(false)
+
+  useEffect(() => {
+    let cancelled = false
+    void window.ipc
+      .invoke("updater:getStatus", null)
+      .then((s) => {
+        if (!cancelled) setStatus(s)
+      })
+      .catch(() => {})
+    const unsubscribe = window.ipc.on("updater:status", (s) => {
+      setStatus(s)
+    })
+    return () => {
+      cancelled = true
+      unsubscribe()
+    }
+  }, [])
+
+  const snoozed = !!status?.snoozedUntil && status.snoozedUntil > now
+  const downloading = status?.state === "downloading"
+  const ready = status?.state === "ready" && !snoozed
+
+  // Wake up when the snooze lapses so the chip re-offers itself.
+  useEffect(() => {
+    if (status?.state !== "ready" || !status.snoozedUntil) return
+    const delay = status.snoozedUntil - Date.now()
+    if (delay <= 0) return
+    const timer = setTimeout(() => setNow(Date.now()), delay + 1000)
+    return () => clearTimeout(timer)
+  }, [status])
+
+  useEffect(() => {
+    if (ready && !promptedRef.current) {
+      updatePrompted()
+      promptedRef.current = true
+    }
+  }, [ready])
+
+  const description = status?.newVersion
+    ? `Rowboat ${status.newVersion} has been downloaded.`
+    : "A new version of Rowboat has been downloaded."
+
+  return (
+    <div className="flex items-center self-center shrink-0">
+      <Tooltip>
+        <TooltipTrigger asChild>
+          <button
+            type="button"
+            onClick={ready ? () => void window.ipc.invoke("updater:quitAndInstall", null) : undefined}
+            disabled={!ready && !downloading}
+            aria-hidden={!ready && !downloading}
+            aria-label={ready ? "Restart to update" : downloading ? "Downloading update" : undefined}
+            className={cn(
+              "titlebar-no-drag flex h-8 items-center justify-center rounded-md transition-colors self-center shrink-0",
+              ready
+                ? "gap-1.5 px-2.5 text-xs font-medium bg-accent/60 text-foreground hover:bg-accent"
+                : downloading
+                  ? "w-8 text-muted-foreground cursor-default"
+                  : "w-0 invisible pointer-events-none",
+            )}
+          >
+            {downloading ? (
+              <LoaderIcon className="size-4 animate-spin" />
+            ) : ready ? (
+              <>
+                <RefreshCw className="size-3.5" />
+                <span>Restart to update</span>
+              </>
+            ) : null}
+          </button>
+        </TooltipTrigger>
+        {downloading && <TooltipContent side="bottom">Downloading update…</TooltipContent>}
+        {ready && (
+          <TooltipContent side="bottom" className="max-w-64">
+            {description} Restart to finish updating — you'll come right back to where you are.
+          </TooltipContent>
+        )}
+      </Tooltip>
+      <Tooltip>
+        <TooltipTrigger asChild>
+          <button
+            type="button"
+            onClick={() => void window.ipc.invoke("updater:snooze", null)}
+            disabled={!ready}
+            aria-hidden={!ready}
+            aria-label="Remind me later"
+            className={cn(
+              "titlebar-no-drag flex h-8 items-center justify-center rounded-md text-muted-foreground transition-colors self-center shrink-0",
+              ready ? "w-5 hover:text-foreground" : "w-0 invisible pointer-events-none",
+            )}
+          >
+            <X className={cn("size-3.5", !ready && "hidden")} />
+          </button>
+        </TooltipTrigger>
+        {ready && <TooltipContent side="bottom">Remind me later</TooltipContent>}
+      </Tooltip>
+    </div>
+  )
+}
diff --git a/apps/x/apps/renderer/src/components/update-notice.tsx b/apps/x/apps/renderer/src/components/update-notice.tsx
deleted file mode 100644
index 03a24ed7..00000000
--- a/apps/x/apps/renderer/src/components/update-notice.tsx
+++ /dev/null
@@ -1,102 +0,0 @@
-import { useEffect, useRef, useState } from "react"
-import { toast } from "sonner"
-import { updatePrompted } from "@/lib/analytics"
-
-// How often to re-evaluate the snooze while an update stays pending. The
-// snooze itself (24h) is owned by main — see updater.ts snoozeUpdateNotice —
-// so "Later" survives window reloads and reopens.
-const RECHECK_MS = 60 * 60 * 1000
-
-const TOAST_ID = "update-ready"
-
-/**
- * Non-modal "restart to update" card (gap: the native update dialog used to
- * interrupt mid-call). Renders nothing; drives a persistent sonner toast.
- *
- * `busy` defers the card while the user is in a call or a turn is running —
- * it appears at the first idle moment after the update is staged, and is
- * retracted if a call/turn starts while it's on screen.
- */
-export function UpdateReadyNotice({ busy }: { busy: boolean }) {
-  const [ready, setReady] = useState<{ newVersion?: string; snoozedUntil?: number } | null>(null)
-  const promptedRef = useRef(false)
-  // Distinguishes our own toast.dismiss (retraction) from the user dismissing
-  // the card — sonner fires onDismiss for both, and only the latter snoozes.
-  const retractedRef = useRef(false)
-
-  useEffect(() => {
-    void window.ipc.invoke("updater:getStatus", null).then((s) => {
-      if (s.state === "ready") setReady({ newVersion: s.newVersion, snoozedUntil: s.snoozedUntil })
-    })
-    return window.ipc.on("updater:status", (s) => {
-      setReady(s.state === "ready" ? { newVersion: s.newVersion, snoozedUntil: s.snoozedUntil } : null)
-    })
-  }, [])
-
-  useEffect(() => {
-    if (busy) {
-      // Retract the card if a call/turn starts while it's up. Only on busy —
-      // `ready` briefly clears during the periodic re-check cycle
-      // (ready → checking → ready), and dismissing there would blink the card.
-      retractedRef.current = true
-      toast.dismiss(TOAST_ID)
-      return
-    }
-    if (!ready) return
-
-    // Main persists the snooze and pushes the refreshed status, which updates
-    // `ready.snoozedUntil` here (and in any other open window).
-    const snooze = () => {
-      if (retractedRef.current) return
-      void window.ipc.invoke("updater:snooze", null)
-    }
-    const show = () => {
-      if (ready.snoozedUntil && Date.now() < ready.snoozedUntil) return
-      if (!promptedRef.current) {
-        updatePrompted()
-        promptedRef.current = true
-      }
-      retractedRef.current = false
-      const notesUrl = ready.newVersion
-        ? `https://github.com/rowboatlabs/rowboat/releases/tag/v${ready.newVersion}`
-        : "https://github.com/rowboatlabs/rowboat/releases/latest"
-      toast("Update ready", {
-        id: TOAST_ID, // stable id: re-shows update in place, never stacks
-        description: (
-          <>
-            {ready.newVersion
-              ? `Rowboat ${ready.newVersion} has been downloaded. `
-              : "A new version of Rowboat has been downloaded. "}
-            {"Restart to finish updating — you'll come right back to where you are. "}
-            <a
-              href={notesUrl}
-              target="_blank"
-              rel="noopener noreferrer"
-              className="underline hover:text-foreground transition-colors"
-            >
-              {"See what's new"}
-            </a>
-          </>
-        ),
-        duration: Infinity,
-        action: {
-          label: "Restart now",
-          onClick: () => void window.ipc.invoke("updater:quitAndInstall", null),
-        },
-        cancel: {
-          label: "Later",
-          onClick: snooze,
-        },
-        onDismiss: snooze,
-      })
-    }
-
-    show()
-    // The app can stay open for weeks (macOS especially) — quietly re-offer
-    // once per day while the update is still pending.
-    const interval = setInterval(show, RECHECK_MS)
-    return () => clearInterval(interval)
-  }, [ready, busy])
-
-  return null
-}