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;