diff --git a/apps/x/apps/renderer/src/components/code/code-chat.tsx b/apps/x/apps/renderer/src/components/code/code-chat.tsx
index 7b1656f3..6c34c295 100644
--- a/apps/x/apps/renderer/src/components/code/code-chat.tsx
+++ b/apps/x/apps/renderer/src/components/code/code-chat.tsx
@@ -103,7 +103,8 @@ export function CodeChat({
   onOpenDiff: (path: string) => void
 }) {
   const {
-    items, liveText, isProcessing, pendingPermission, pendingToolPermissions, pendingAskHumans,
+    items, liveText, isProcessing, compactionStatus, contextUsage,
+    pendingPermission, pendingToolPermissions, pendingAskHumans,
     loading, send, stop, resolvePermission, respondToToolPermission, respondToAskHuman,
   } = useCodeChat(session)
   const [draft, setDraft] = useState('')
@@ -111,6 +112,9 @@ export function CodeChat({
   const textareaRef = useRef<HTMLTextAreaElement>(null)
 
   const busy = isProcessing || status === 'working' || status === 'needs-you'
+  const contextUsedPercent = contextUsage
+    ? Math.min(100, Math.round((contextUsage.used / contextUsage.size) * 100))
+    : null
   // Attached file PATHS — like dragging a file into the Claude Code CLI, the
   // agent receives paths and reads the files itself with its own tools.
   const [attachments, setAttachments] = useState<string[]>([])
@@ -188,7 +192,10 @@ export function CodeChat({
         <Terminal className="size-3.5 shrink-0 text-muted-foreground" />
         <div className="min-w-0 flex-1">
           <div className="truncate text-sm font-medium">{session.title}</div>
-          <div className="text-[11px] text-muted-foreground">{AGENT_LABEL[session.agent]} — direct</div>
+          <div className="text-[11px] text-muted-foreground">
+            {AGENT_LABEL[session.agent]} — direct
+            {contextUsedPercent != null ? ` · ${contextUsedPercent}% context used` : ''}
+          </div>
         </div>
       </div>
 
@@ -239,9 +246,19 @@ export function CodeChat({
             />
           ))}
           {busy && !pendingPermission && pendingToolPermissions.size === 0 && pendingAskHumans.size === 0 && (
-            <Shimmer className="text-sm">
-              {stopping ? 'Stopping…' : `${AGENT_LABEL[session.agent]} is working…`}
-            </Shimmer>
+            compactionStatus === 'stalled' ? (
+              <div className="text-sm text-amber-600">
+                Context compaction is taking longer than expected. You can stop and retry in a fresh session.
+              </div>
+            ) : (
+              <Shimmer className="text-sm">
+                {stopping
+                  ? 'Stopping…'
+                  : compactionStatus === 'running'
+                    ? 'Compacting context…'
+                    : `${AGENT_LABEL[session.agent]} is working…`}
+              </Shimmer>
+            )
           )}
         </ConversationContent>
         <ConversationScrollButton />
diff --git a/apps/x/apps/renderer/src/components/code/use-code-chat.ts b/apps/x/apps/renderer/src/components/code/use-code-chat.ts
index 08468c49..ce8973c0 100644
--- a/apps/x/apps/renderer/src/components/code/use-code-chat.ts
+++ b/apps/x/apps/renderer/src/components/code/use-code-chat.ts
@@ -41,6 +41,10 @@ export interface PendingCodePermission {
 
 const DIRECT_PREFIX = 'direct-'
 const STRUCTURAL_EVENTS = new Set(['tool_call', 'tool_call_update', 'plan', 'permission'])
+const COMPACTION_TITLE = 'Compacting context'
+const COMPACTION_STALLED_MS = 90_000
+
+export type CompactionStatus = 'idle' | 'running' | 'stalled'
 
 function messageText(content: unknown): string {
   if (typeof content === 'string') return content
@@ -62,6 +66,8 @@ export function useCodeChat(session: CodeSession | null) {
   const [items, setItems] = useState<CodeChatItem[]>([])
   const [liveText, setLiveText] = useState('')
   const [isProcessing, setIsProcessing] = useState(false)
+  const [compactionStatus, setCompactionStatus] = useState<CompactionStatus>('idle')
+  const [contextUsage, setContextUsage] = useState<{ used: number; size: number } | null>(null)
   const [pendingPermission, setPendingPermission] = useState<PendingCodePermission | null>(null)
   // Rowboat-mode copilot gates, same as the main chat: pre-tool-call permission
   // requests and ask-human questions. Keyed by toolCallId.
@@ -69,6 +75,7 @@ export function useCodeChat(session: CodeSession | null) {
   const [pendingAskHumans, setPendingAskHumans] = useState<Map<string, z.infer<typeof AskHumanRequestEvent>>>(new Map())
   const [loading, setLoading] = useState(false)
   const seenMessageIdsRef = useRef<Set<string>>(new Set())
+  const compactionToolIdRef = useRef<string | null>(null)
 
   const applyCodeRunEvent = useCallback((toolCallId: string, event: CodeRunEvent) => {
     if (toolCallId.startsWith(DIRECT_PREFIX)) {
@@ -99,6 +106,9 @@ export function useCodeChat(session: CodeSession | null) {
     if (!sessionId) {
       setItems([])
       setLiveText('')
+      setCompactionStatus('idle')
+      setContextUsage(null)
+      compactionToolIdRef.current = null
       setPendingPermission(null)
       return
     }
@@ -106,6 +116,9 @@ export function useCodeChat(session: CodeSession | null) {
     setLoading(true)
     setItems([])
     setLiveText('')
+    setCompactionStatus('idle')
+    setContextUsage(null)
+    compactionToolIdRef.current = null
     setPendingPermission(null)
     setPendingToolPermissions(new Map())
     setPendingAskHumans(new Map())
@@ -217,6 +230,12 @@ export function useCodeChat(session: CodeSession | null) {
     return () => { cancelled = true }
   }, [sessionId])
 
+  useEffect(() => {
+    if (compactionStatus !== 'running') return
+    const timer = window.setTimeout(() => setCompactionStatus('stalled'), COMPACTION_STALLED_MS)
+    return () => window.clearTimeout(timer)
+  }, [compactionStatus])
+
   // Live event stream.
   useEffect(() => {
     if (!sessionId) return
@@ -230,6 +249,8 @@ export function useCodeChat(session: CodeSession | null) {
           break
         case 'run-processing-end':
           setIsProcessing(false)
+          setCompactionStatus('idle')
+          compactionToolIdRef.current = null
           setPendingPermission(null)
           // Anything still streaming that never landed as a message (e.g. the
           // turn errored) is flushed so the text isn't lost.
@@ -247,6 +268,8 @@ export function useCodeChat(session: CodeSession | null) {
           break
         case 'run-stopped':
           setIsProcessing(false)
+          setCompactionStatus('idle')
+          compactionToolIdRef.current = null
           setPendingPermission(null)
           setPendingToolPermissions(new Map())
           setPendingAskHumans(new Map())
@@ -348,6 +371,19 @@ export function useCodeChat(session: CodeSession | null) {
           break
         case 'code-run-event': {
           setIsProcessing(true)
+          if (event.event.type === 'usage') {
+            setContextUsage({ used: event.event.used, size: event.event.size })
+          }
+          if (event.event.type === 'tool_call' && event.event.title === COMPACTION_TITLE) {
+            compactionToolIdRef.current = event.event.id ?? null
+            setCompactionStatus('running')
+          }
+          if (event.event.type === 'tool_call_update'
+            && event.event.id != null
+            && event.event.id === compactionToolIdRef.current) {
+            compactionToolIdRef.current = null
+            setCompactionStatus('idle')
+          }
           if (event.event.type === 'message' && event.event.role === 'agent' && event.toolCallId.startsWith(DIRECT_PREFIX)) {
             const text = event.event.text
             setLiveText((prev) => prev + text)
@@ -460,6 +496,8 @@ export function useCodeChat(session: CodeSession | null) {
     items,
     liveText,
     isProcessing,
+    compactionStatus,
+    contextUsage,
     pendingPermission,
     pendingToolPermissions,
     pendingAskHumans,
diff --git a/apps/x/apps/renderer/src/components/coding-run.tsx b/apps/x/apps/renderer/src/components/coding-run.tsx
index ea620dc9..916aad37 100644
--- a/apps/x/apps/renderer/src/components/coding-run.tsx
+++ b/apps/x/apps/renderer/src/components/coding-run.tsx
@@ -9,6 +9,7 @@ import {
   Pencil,
   Search,
   ShieldQuestion,
+  Sparkles,
   Terminal,
   Trash2,
   Wrench,
@@ -87,7 +88,8 @@ export function reduceEvents(events: CodeRunEvent[]): Row[] {
   return rows
 }
 
-function toolKindIcon(kind?: string) {
+function toolKindIcon(kind?: string, title?: string) {
+  if (title === 'Compacting context') return <Sparkles className="size-3.5 shrink-0 text-muted-foreground" />
   switch (kind) {
     case 'read': return <Eye className="size-3.5 shrink-0 text-muted-foreground" />
     case 'edit': return <Pencil className="size-3.5 shrink-0 text-muted-foreground" />
@@ -137,7 +139,7 @@ export function CodingRunTimeline({
                 {running
                   ? <Loader className="size-3.5 shrink-0 animate-spin text-muted-foreground" />
                   : <CheckCircle2 className="size-3.5 shrink-0 text-green-600" />}
-                {toolKindIcon(row.toolKind)}
+                {toolKindIcon(row.toolKind, row.title)}
                 <span className="truncate text-foreground/90">{row.title ?? row.toolKind ?? 'Tool call'}</span>
               </div>
               {row.diffs.length > 0 && (
diff --git a/apps/x/packages/core/src/code-mode/acp/client.ts b/apps/x/packages/core/src/code-mode/acp/client.ts
index b78c5619..f7351604 100644
--- a/apps/x/packages/core/src/code-mode/acp/client.ts
+++ b/apps/x/packages/core/src/code-mode/acp/client.ts
@@ -139,6 +139,8 @@ function toEvent(update: SessionUpdate): CodeRunEvent {
                     priority: e.priority ?? undefined,
                 })),
             };
+        case 'usage_update':
+            return { type: 'usage', used: update.used, size: update.size };
         default:
             return { type: 'other', sessionUpdate: update.sessionUpdate };
     }
diff --git a/apps/x/packages/shared/src/code-mode.ts b/apps/x/packages/shared/src/code-mode.ts
index a3bd46a7..8a85f62f 100644
--- a/apps/x/packages/shared/src/code-mode.ts
+++ b/apps/x/packages/shared/src/code-mode.ts
@@ -53,6 +53,11 @@ export const CodeRunEvent = z.discriminatedUnion("type", [
             priority: z.string().optional(),
         })),
     }),
+    z.object({
+        type: z.literal("usage"),
+        used: z.number().nonnegative(),
+        size: z.number().positive(),
+    }),
     z.object({
         type: z.literal("permission"),
         ask: PermissionAsk,
diff --git a/apps/x/patches/@agentclientprotocol__codex-acp@0.0.44.patch b/apps/x/patches/@agentclientprotocol__codex-acp@0.0.44.patch
new file mode 100644
index 00000000..79ab1623
--- /dev/null
+++ b/apps/x/patches/@agentclientprotocol__codex-acp@0.0.44.patch
@@ -0,0 +1,57 @@
+diff --git a/dist/index.js b/dist/index.js
+--- a/dist/index.js
++++ b/dist/index.js
+@@ -17678,15 +17678,22 @@
+       case "dynamicToolCall":
+         return await createDynamicToolCallUpdate(event.item);
++      case "contextCompaction":
++        return {
++          sessionUpdate: "tool_call",
++          toolCallId: event.item.id,
++          kind: "other",
++          title: "Compacting context",
++          status: "in_progress"
++        };
+       case "collabAgentToolCall":
+       case "userMessage":
+       case "hookPrompt":
+       case "agentMessage":
+       case "reasoning":
+       case "webSearch":
+       case "imageView":
+       case "imageGeneration":
+       case "enteredReviewMode":
+       case "exitedReviewMode":
+-      case "contextCompaction":
+       case "plan":
+         return null;
+@@ -17713,23 +17720,28 @@
+         return this.completeCommandExecutionEvent(event.item);
+       case "reasoning":
+         const summary = event.item.summary[0];
+         if (!summary) return null;
+         return {
+           sessionUpdate: "agent_thought_chunk",
+           content: {
+             type: "text",
+             text: summary
+           }
+         };
++      case "contextCompaction":
++        return {
++          sessionUpdate: "tool_call_update",
++          toolCallId: event.item.id,
++          status: "completed"
++        };
+       case "collabAgentToolCall":
+       case "userMessage":
+       case "hookPrompt":
+       case "agentMessage":
+       case "webSearch":
+       case "imageView":
+       case "imageGeneration":
+       case "enteredReviewMode":
+       case "exitedReviewMode":
+-      case "contextCompaction":
+       case "plan":
+         return null;
diff --git a/apps/x/pnpm-lock.yaml b/apps/x/pnpm-lock.yaml
index dc18481a..5ad372b2 100644
--- a/apps/x/pnpm-lock.yaml
+++ b/apps/x/pnpm-lock.yaml
@@ -11,6 +11,9 @@ catalogs:
       version: 4.1.7
 
 patchedDependencies:
+  '@agentclientprotocol/codex-acp@0.0.44':
+    hash: 0079b1ab3870451b47fe5ea5ecaca697e17139cff50fd2ee9c296b172aba525e
+    path: patches/@agentclientprotocol__codex-acp@0.0.44.patch
   '@openai/codex@0.128.0':
     hash: 9edd926108a95aaa788aa93870fd6b16d70eeccdf5740b503af5d34cc9f25e86
     path: patches/@openai__codex@0.128.0.patch
@@ -57,7 +60,7 @@ importers:
         version: 0.39.0(@anthropic-ai/sdk@0.100.1(zod@4.2.1))(@modelcontextprotocol/sdk@1.25.1(hono@4.11.3)(zod@4.2.1))
       '@agentclientprotocol/codex-acp':
         specifier: ^0.0.44
-        version: 0.0.44(zod@4.2.1)
+        version: 0.0.44(patch_hash=0079b1ab3870451b47fe5ea5ecaca697e17139cff50fd2ee9c296b172aba525e)(zod@4.2.1)
       '@x/core':
         specifier: workspace:*
         version: link:../../packages/core
@@ -414,7 +417,7 @@ importers:
         version: 0.39.0(@anthropic-ai/sdk@0.100.1(zod@4.2.1))(@modelcontextprotocol/sdk@1.25.1(hono@4.11.3)(zod@4.2.1))
       '@agentclientprotocol/codex-acp':
         specifier: ^0.0.44
-        version: 0.0.44(zod@4.2.1)
+        version: 0.0.44(patch_hash=0079b1ab3870451b47fe5ea5ecaca697e17139cff50fd2ee9c296b172aba525e)(zod@4.2.1)
       '@agentclientprotocol/sdk':
         specifier: ^0.22.1
         version: 0.22.1(zod@4.2.1)
@@ -8512,7 +8515,7 @@ snapshots:
       - '@anthropic-ai/sdk'
       - '@modelcontextprotocol/sdk'
 
-  '@agentclientprotocol/codex-acp@0.0.44(zod@4.2.1)':
+  '@agentclientprotocol/codex-acp@0.0.44(patch_hash=0079b1ab3870451b47fe5ea5ecaca697e17139cff50fd2ee9c296b172aba525e)(zod@4.2.1)':
     dependencies:
       '@agentclientprotocol/sdk': 0.21.1(zod@4.2.1)
       '@openai/codex': 0.128.0(patch_hash=9edd926108a95aaa788aa93870fd6b16d70eeccdf5740b503af5d34cc9f25e86)
diff --git a/apps/x/pnpm-workspace.yaml b/apps/x/pnpm-workspace.yaml
index 3f3b314a..c588042e 100644
--- a/apps/x/pnpm-workspace.yaml
+++ b/apps/x/pnpm-workspace.yaml
@@ -24,4 +24,5 @@ onlyBuiltDependencies:
   - macos-alias
   - protobufjs
 patchedDependencies:
+  '@agentclientprotocol/codex-acp@0.0.44': patches/@agentclientprotocol__codex-acp@0.0.44.patch
   '@openai/codex@0.128.0': patches/@openai__codex@0.128.0.patch