diff --git a/src/cloud/api/workspaces.ts b/src/cloud/api/workspaces.ts
index cb97522e5..1620adca9 100644
--- a/src/cloud/api/workspaces.ts
+++ b/src/cloud/api/workspaces.ts
@@ -301,8 +301,9 @@ workspacesRouter.get('/:id/status', async (req: Request, res: Response) => {
     const provisioner = getProvisioner();
     const status = await provisioner.getStatus(id);
 
-    // Include provisioning progress info if status is 'provisioning'
-    const provisioningProgress = status === 'provisioning' ? getProvisioningStage(id) : null;
+    // Include provisioning progress info if it exists (even after status changes to 'running')
+    // This allows the frontend to see all stages including 'complete'
+    const provisioningProgress = getProvisioningStage(id);
 
     res.json({
       status,
diff --git a/src/cloud/provisioner/index.ts b/src/cloud/provisioner/index.ts
index cba371066..422db0b90 100644
--- a/src/cloud/provisioner/index.ts
+++ b/src/cloud/provisioner/index.ts
@@ -63,6 +63,17 @@ function clearProvisioningProgress(workspaceId: string): void {
   provisioningProgress.delete(workspaceId);
 }
 
+/**
+ * Schedule cleanup of provisioning progress after a delay
+ * This gives the frontend time to poll and see the 'complete' stage
+ */
+function scheduleProgressCleanup(workspaceId: string, delayMs: number = 30_000): void {
+  setTimeout(() => {
+    clearProvisioningProgress(workspaceId);
+    console.log(`[provisioner] Cleaned up provisioning progress for ${workspaceId.substring(0, 8)}`);
+  }, delayMs);
+}
+
 /**
  * Get a fresh GitHub App installation token from Nango.
  * Looks up the user's connected repositories to find a valid Nango connection.
@@ -602,6 +613,9 @@ class FlyProvisioner implements ComputeProvisioner {
     // Stage: Complete
     updateProvisioningStage(workspace.id, 'complete');
 
+    // Schedule cleanup of provisioning progress after 30s (gives frontend time to see 'complete')
+    scheduleProgressCleanup(workspace.id);
+
     return {
       computeId: machine.id,
       publicUrl,
@@ -1272,6 +1286,7 @@ export class WorkspaceProvisioner {
 
   /**
    * Provision a new workspace (one-click)
+   * Returns immediately with 'provisioning' status and runs actual provisioning in background
    */
   async provision(config: ProvisionConfig): Promise<ProvisionResult> {
     // Create workspace record
@@ -1297,6 +1312,25 @@ export class WorkspaceProvisioner {
     // Auto-accept the creator's membership
     await db.workspaceMembers.acceptInvite(workspace.id, config.userId);
 
+    // Initialize stage tracking immediately
+    updateProvisioningStage(workspace.id, 'creating');
+
+    // Run provisioning in the background
+    this.runProvisioningAsync(workspace, config).catch((error) => {
+      console.error(`[provisioner] Background provisioning failed for ${workspace.id}:`, error);
+    });
+
+    // Return immediately with 'provisioning' status
+    return {
+      workspaceId: workspace.id,
+      status: 'provisioning',
+    };
+  }
+
+  /**
+   * Run the actual provisioning work asynchronously
+   */
+  private async runProvisioningAsync(workspace: Workspace, config: ProvisionConfig): Promise<void> {
     // Get credentials
     const credentials = new Map<string, string>();
     for (const provider of config.providers) {
@@ -1336,11 +1370,7 @@ export class WorkspaceProvisioner {
         publicUrl,
       });
 
-      return {
-        workspaceId: workspace.id,
-        status: 'running',
-        publicUrl,
-      };
+      console.log(`[provisioner] Workspace ${workspace.id} provisioned successfully at ${publicUrl}`);
     } catch (error) {
       const errorMessage = error instanceof Error ? error.message : 'Unknown error';
 
@@ -1348,11 +1378,10 @@ export class WorkspaceProvisioner {
         errorMessage,
       });
 
-      return {
-        workspaceId: workspace.id,
-        status: 'error',
-        error: errorMessage,
-      };
+      // Clear provisioning progress on error
+      clearProvisioningProgress(workspace.id);
+
+      console.error(`[provisioner] Workspace ${workspace.id} provisioning failed:`, errorMessage);
     }
   }
 
diff --git a/src/daemon/connection.test.ts b/src/daemon/connection.test.ts
index e91cfce34..539eb1b7b 100644
--- a/src/daemon/connection.test.ts
+++ b/src/daemon/connection.test.ts
@@ -114,117 +114,137 @@ describe('Connection', () => {
 
   describe('heartbeat timeout configuration', () => {
     it('uses configurable heartbeatTimeoutMultiplier', async () => {
-      const socket = new MockSocket();
-      // 10ms heartbeat * 2 multiplier = 20ms timeout
-      const connection = new Connection(socket as unknown as Socket, {
-        heartbeatMs: 10,
-        heartbeatTimeoutMultiplier: 2,
-      });
-      const onError = vi.fn();
-      connection.onError = onError;
-
-      socket.emit('data', encodeFrame(makeHello('agent-a')));
-      expect(connection.state).toBe('ACTIVE');
-
-      // Wait less than timeout (20ms) - should still be alive
-      await new Promise((r) => setTimeout(r, 15));
-      expect(onError).not.toHaveBeenCalled();
-      expect(connection.state).toBe('ACTIVE');
-
-      // Wait past timeout - should be dead
-      await new Promise((r) => setTimeout(r, 30));
-      expect(onError).toHaveBeenCalledTimes(1);
-      expect(socket.destroyed).toBe(true);
+      vi.useFakeTimers();
+      try {
+        const socket = new MockSocket();
+        // 10ms heartbeat * 2 multiplier = 20ms timeout
+        const connection = new Connection(socket as unknown as Socket, {
+          heartbeatMs: 10,
+          heartbeatTimeoutMultiplier: 2,
+        });
+        const onError = vi.fn();
+        connection.onError = onError;
+
+        socket.emit('data', encodeFrame(makeHello('agent-a')));
+        expect(connection.state).toBe('ACTIVE');
+
+        // Wait less than timeout (20ms) - should still be alive
+        await vi.advanceTimersByTimeAsync(15);
+        expect(onError).not.toHaveBeenCalled();
+        expect(connection.state).toBe('ACTIVE');
+
+        // Wait past timeout - should be dead
+        await vi.advanceTimersByTimeAsync(30);
+        expect(onError).toHaveBeenCalledTimes(1);
+        expect(socket.destroyed).toBe(true);
+      } finally {
+        vi.useRealTimers();
+      }
     });
 
     it('survives with slow but timely pong responses', async () => {
-      const socket = new MockSocket();
-      // 20ms heartbeat * 3 multiplier = 60ms timeout
-      const connection = new Connection(socket as unknown as Socket, {
-        heartbeatMs: 20,
-        heartbeatTimeoutMultiplier: 3,
-      });
-      const onError = vi.fn();
-      const onPong = vi.fn();
-      connection.onError = onError;
-      connection.onPong = onPong;
-
-      socket.emit('data', encodeFrame(makeHello('agent-a')));
-      expect(connection.state).toBe('ACTIVE');
-
-      // Simulate slow but valid pong responses every 40ms (within 60ms timeout)
-      for (let i = 0; i < 3; i++) {
-        await new Promise((r) => setTimeout(r, 40));
-        // Send PONG before timeout expires
+      vi.useFakeTimers();
+      try {
+        const socket = new MockSocket();
+        // 20ms heartbeat * 3 multiplier = 60ms timeout
+        const connection = new Connection(socket as unknown as Socket, {
+          heartbeatMs: 20,
+          heartbeatTimeoutMultiplier: 3,
+        });
+        const onError = vi.fn();
+        const onPong = vi.fn();
+        connection.onError = onError;
+        connection.onPong = onPong;
+
+        socket.emit('data', encodeFrame(makeHello('agent-a')));
+        expect(connection.state).toBe('ACTIVE');
+
+        // Simulate slow but valid pong responses every 40ms (within 60ms timeout)
+        for (let i = 0; i < 3; i++) {
+          await vi.advanceTimersByTimeAsync(40);
+          // Send PONG before timeout expires
+          socket.emit('data', encodeFrame({
+            v: PROTOCOL_VERSION,
+            type: 'PONG',
+            id: `pong-${i}`,
+            ts: Date.now(),
+            payload: { nonce: 'test' },
+          }));
+        }
+
+        // Connection should still be alive after multiple slow pongs
+        expect(onError).not.toHaveBeenCalled();
+        expect(connection.state).toBe('ACTIVE');
+        expect(onPong).toHaveBeenCalledTimes(3);
+      } finally {
+        vi.useRealTimers();
+      }
+    });
+
+    it('dies when pong arrives too late', async () => {
+      vi.useFakeTimers();
+      try {
+        const socket = new MockSocket();
+        // 10ms heartbeat * 2 multiplier = 20ms timeout
+        const connection = new Connection(socket as unknown as Socket, {
+          heartbeatMs: 10,
+          heartbeatTimeoutMultiplier: 2,
+        });
+        const onError = vi.fn();
+        connection.onError = onError;
+
+        socket.emit('data', encodeFrame(makeHello('agent-a')));
+        expect(connection.state).toBe('ACTIVE');
+
+        // Wait past timeout before sending pong
+        await vi.advanceTimersByTimeAsync(50);
+
+        // Connection should already be dead
+        expect(onError).toHaveBeenCalledTimes(1);
+        expect(socket.destroyed).toBe(true);
+
+        // Late pong should have no effect (connection already dead)
         socket.emit('data', encodeFrame({
           v: PROTOCOL_VERSION,
           type: 'PONG',
-          id: `pong-${i}`,
+          id: 'late-pong',
           ts: Date.now(),
           payload: { nonce: 'test' },
         }));
-      }
 
-      // Connection should still be alive after multiple slow pongs
-      expect(onError).not.toHaveBeenCalled();
-      expect(connection.state).toBe('ACTIVE');
-      expect(onPong).toHaveBeenCalledTimes(3);
-    });
-
-    it('dies when pong arrives too late', async () => {
-      const socket = new MockSocket();
-      // 10ms heartbeat * 2 multiplier = 20ms timeout
-      const connection = new Connection(socket as unknown as Socket, {
-        heartbeatMs: 10,
-        heartbeatTimeoutMultiplier: 2,
-      });
-      const onError = vi.fn();
-      connection.onError = onError;
-
-      socket.emit('data', encodeFrame(makeHello('agent-a')));
-      expect(connection.state).toBe('ACTIVE');
-
-      // Wait past timeout before sending pong
-      await new Promise((r) => setTimeout(r, 50));
-
-      // Connection should already be dead
-      expect(onError).toHaveBeenCalledTimes(1);
-      expect(socket.destroyed).toBe(true);
-
-      // Late pong should have no effect (connection already dead)
-      socket.emit('data', encodeFrame({
-        v: PROTOCOL_VERSION,
-        type: 'PONG',
-        id: 'late-pong',
-        ts: Date.now(),
-        payload: { nonce: 'test' },
-      }));
-
-      // Error count should not increase
-      expect(onError).toHaveBeenCalledTimes(1);
+        // Error count should not increase
+        expect(onError).toHaveBeenCalledTimes(1);
+      } finally {
+        vi.useRealTimers();
+      }
     });
 
     it('uses default multiplier of 6 when not specified', async () => {
-      const socket = new MockSocket();
-      // 10ms heartbeat * 6 (default) = 60ms timeout
-      const connection = new Connection(socket as unknown as Socket, {
-        heartbeatMs: 10,
-        // heartbeatTimeoutMultiplier not specified - should default to 6
-      });
-      const onError = vi.fn();
-      connection.onError = onError;
-
-      socket.emit('data', encodeFrame(makeHello('agent-a')));
-      expect(connection.state).toBe('ACTIVE');
-
-      // Wait 40ms - should still be alive (timeout is 60ms)
-      await new Promise((r) => setTimeout(r, 40));
-      expect(onError).not.toHaveBeenCalled();
-      expect(connection.state).toBe('ACTIVE');
-
-      // Wait total of 80ms - should be dead
-      await new Promise((r) => setTimeout(r, 50));
-      expect(onError).toHaveBeenCalledTimes(1);
+      vi.useFakeTimers();
+      try {
+        const socket = new MockSocket();
+        // 10ms heartbeat * 6 (default) = 60ms timeout
+        const connection = new Connection(socket as unknown as Socket, {
+          heartbeatMs: 10,
+          // heartbeatTimeoutMultiplier not specified - should default to 6
+        });
+        const onError = vi.fn();
+        connection.onError = onError;
+
+        socket.emit('data', encodeFrame(makeHello('agent-a')));
+        expect(connection.state).toBe('ACTIVE');
+
+        // Wait 40ms - should still be alive (timeout is 60ms)
+        await vi.advanceTimersByTimeAsync(40);
+        expect(onError).not.toHaveBeenCalled();
+        expect(connection.state).toBe('ACTIVE');
+
+        // Wait total of 80ms - should be dead
+        await vi.advanceTimersByTimeAsync(50);
+        expect(onError).toHaveBeenCalledTimes(1);
+      } finally {
+        vi.useRealTimers();
+      }
     });
   });
 });