diff --git a/src/components/TodoList.tsx b/src/components/TodoList.tsx
index 3e3a9eaa3..941fe4f89 100644
--- a/src/components/TodoList.tsx
+++ b/src/components/TodoList.tsx
@@ -56,7 +56,23 @@ const TodoContent = styled.div`
   min-width: 0;
 `;
 
-const TodoText = styled.div<{ status: TodoItem["status"] }>`
+/**
+ * Calculate opacity fade for items distant from the center (exponential decay).
+ * @param distance - How far from the center (higher = more fade)
+ * @param minOpacity - Minimum opacity floor
+ * @returns Opacity value between minOpacity and 1.0
+ */
+function calculateFadeOpacity(distance: number, minOpacity: number): number {
+  return Math.max(minOpacity, 1 - distance * 0.15);
+}
+
+const TodoText = styled.div<{
+  status: TodoItem["status"];
+  completedIndex?: number;
+  totalCompleted?: number;
+  pendingIndex?: number;
+  totalPending?: number;
+}>`
   color: ${(props) => {
     switch (props.status) {
       case "completed":
@@ -68,7 +84,34 @@ const TodoText = styled.div<{ status: TodoItem["status"] }>`
     }
   }};
   text-decoration: ${(props) => (props.status === "completed" ? "line-through" : "none")};
-  opacity: ${(props) => (props.status === "completed" ? "0.7" : "1")};
+  opacity: ${(props) => {
+    if (props.status === "completed") {
+      // Apply gradient fade for old completed items (distant past)
+      if (
+        props.completedIndex !== undefined &&
+        props.totalCompleted !== undefined &&
+        props.totalCompleted > 2 &&
+        props.completedIndex < props.totalCompleted - 2
+      ) {
+        const distance = props.totalCompleted - props.completedIndex;
+        return calculateFadeOpacity(distance, 0.35);
+      }
+      return "0.7";
+    }
+    if (props.status === "pending") {
+      // Apply gradient fade for far future pending items (distant future)
+      if (
+        props.pendingIndex !== undefined &&
+        props.totalPending !== undefined &&
+        props.totalPending > 2 &&
+        props.pendingIndex > 1
+      ) {
+        const distance = props.pendingIndex - 1;
+        return calculateFadeOpacity(distance, 0.5);
+      }
+    }
+    return "1";
+  }};
   font-weight: ${(props) => (props.status === "in_progress" ? "500" : "normal")};
   white-space: nowrap;
 
@@ -121,16 +164,35 @@ function getStatusIcon(status: TodoItem["status"]): string {
  * - PinnedTodoList (pinned at bottom of chat)
  */
 export const TodoList: React.FC<TodoListProps> = ({ todos }) => {
+  // Count completed and pending items for fade effects
+  const completedCount = todos.filter((t) => t.status === "completed").length;
+  const pendingCount = todos.filter((t) => t.status === "pending").length;
+  let completedIndex = 0;
+  let pendingIndex = 0;
+
   return (
     <TodoListContainer>
-      {todos.map((todo, index) => (
-        <TodoItemContainer key={index} status={todo.status}>
-          <TodoIcon>{getStatusIcon(todo.status)}</TodoIcon>
-          <TodoContent>
-            <TodoText status={todo.status}>{todo.content}</TodoText>
-          </TodoContent>
-        </TodoItemContainer>
-      ))}
+      {todos.map((todo, index) => {
+        const currentCompletedIndex = todo.status === "completed" ? completedIndex++ : undefined;
+        const currentPendingIndex = todo.status === "pending" ? pendingIndex++ : undefined;
+
+        return (
+          <TodoItemContainer key={index} status={todo.status}>
+            <TodoIcon>{getStatusIcon(todo.status)}</TodoIcon>
+            <TodoContent>
+              <TodoText
+                status={todo.status}
+                completedIndex={currentCompletedIndex}
+                totalCompleted={completedCount}
+                pendingIndex={currentPendingIndex}
+                totalPending={pendingCount}
+              >
+                {todo.content}
+              </TodoText>
+            </TodoContent>
+          </TodoItemContainer>
+        );
+      })}
     </TodoListContainer>
   );
 };
diff --git a/src/constants/toolLimits.ts b/src/constants/toolLimits.ts
index 1df0602bb..5d937536a 100644
--- a/src/constants/toolLimits.ts
+++ b/src/constants/toolLimits.ts
@@ -3,3 +3,5 @@ export const BASH_DEFAULT_MAX_LINES = 300;
 export const BASH_HARD_MAX_LINES = 300;
 export const BASH_MAX_LINE_BYTES = 1024; // 1KB per line
 export const BASH_MAX_TOTAL_BYTES = 16 * 1024; // 16KB total output
+
+export const MAX_TODOS = 7; // Maximum number of TODO items in a list
diff --git a/src/services/tools/todo.test.ts b/src/services/tools/todo.test.ts
index 848bda3a3..f343d578d 100644
--- a/src/services/tools/todo.test.ts
+++ b/src/services/tools/todo.test.ts
@@ -95,6 +95,42 @@ describe("Todo Storage", () => {
       expect(storedTodos).toEqual([]);
     });
 
+    it("should reject when exceeding MAX_TODOS limit", async () => {
+      // Create a list with 8 items (exceeds MAX_TODOS = 7)
+      const tooManyTodos: TodoItem[] = [
+        { content: "Task 1", status: "completed" },
+        { content: "Task 2", status: "completed" },
+        { content: "Task 3", status: "completed" },
+        { content: "Task 4", status: "completed" },
+        { content: "Task 5", status: "in_progress" },
+        { content: "Task 6", status: "pending" },
+        { content: "Task 7", status: "pending" },
+        { content: "Task 8", status: "pending" },
+      ];
+
+      await expect(setTodosForTempDir(tempDir, tooManyTodos)).rejects.toThrow(
+        /Too many TODOs \(8\/7\)/i
+      );
+      await expect(setTodosForTempDir(tempDir, tooManyTodos)).rejects.toThrow(
+        /Keep high precision at the center/i
+      );
+    });
+
+    it("should accept exactly MAX_TODOS items", async () => {
+      const maxTodos: TodoItem[] = [
+        { content: "Old work (2 tasks)", status: "completed" },
+        { content: "Recent task", status: "completed" },
+        { content: "Current work", status: "in_progress" },
+        { content: "Next step 1", status: "pending" },
+        { content: "Next step 2", status: "pending" },
+        { content: "Next step 3", status: "pending" },
+        { content: "Future work (5 items)", status: "pending" },
+      ];
+
+      await setTodosForTempDir(tempDir, maxTodos);
+      expect(await getTodosForTempDir(tempDir)).toEqual(maxTodos);
+    });
+
     it("should reject multiple in_progress tasks", async () => {
       const validTodos: TodoItem[] = [
         {
diff --git a/src/services/tools/todo.ts b/src/services/tools/todo.ts
index 4875fa13b..aedb96cf9 100644
--- a/src/services/tools/todo.ts
+++ b/src/services/tools/todo.ts
@@ -4,6 +4,7 @@ import * as path from "path";
 import type { ToolFactory } from "@/utils/tools/tools";
 import { TOOL_DEFINITIONS } from "@/utils/tools/toolDefinitions";
 import type { TodoItem } from "@/types/tools";
+import { MAX_TODOS } from "@/constants/toolLimits";
 
 /**
  * Get path to todos.json file in the stream's temporary directory
@@ -29,6 +30,7 @@ async function readTodos(tempDir: string): Promise<TodoItem[]> {
 /**
  * Validate todo sequencing rules before persisting.
  * Enforces order: completed → in_progress → pending (top to bottom)
+ * Enforces maximum count to encourage summarization.
  */
 function validateTodos(todos: TodoItem[]): void {
   if (!Array.isArray(todos)) {
@@ -39,6 +41,19 @@ function validateTodos(todos: TodoItem[]): void {
     return;
   }
 
+  // Enforce maximum TODO count
+  if (todos.length > MAX_TODOS) {
+    throw new Error(
+      `Too many TODOs (${todos.length}/${MAX_TODOS}). ` +
+        `Keep high precision at the center: ` +
+        `summarize old completed work (e.g., 'Setup phase (3 tasks)'), ` +
+        `keep recent completions detailed (1-2), ` +
+        `one in_progress, ` +
+        `immediate pending detailed (2-3), ` +
+        `and summarize far future work (e.g., 'Testing phase (4 items)').`
+    );
+  }
+
   let phase: "completed" | "in_progress" | "pending" = "completed";
   let inProgressCount = 0;
 
diff --git a/src/utils/tools/toolDefinitions.ts b/src/utils/tools/toolDefinitions.ts
index 14b33a2c2..36288f17e 100644
--- a/src/utils/tools/toolDefinitions.ts
+++ b/src/utils/tools/toolDefinitions.ts
@@ -154,12 +154,23 @@ export const TOOL_DEFINITIONS = {
   },
   todo_write: {
     description:
-      "Create or update the todo list for tracking multi-step tasks. " +
+      "Create or update the todo list for tracking multi-step tasks (limit: 7 items). " +
       "Use this for ALL complex, multi-step plans to keep the user informed of progress. " +
       "Replace the entire list on each call - the AI should track which tasks are completed. " +
+      "\n\n" +
+      "Structure the list with high precision at the center:\n" +
+      "- Old completed work: Summarize into 1 overview item (e.g., 'Set up project infrastructure (4 tasks)')\n" +
+      "- Recent completions: Keep detailed (last 1-2 items)\n" +
+      "- Current work: One in_progress item with clear description\n" +
+      "- Immediate next steps: Detailed pending items (next 2-3 actions)\n" +
+      "- Far future work: Summarize into phase items (e.g., 'Testing and polish (3 items)')\n" +
+      "\n" +
+      "Update frequently as work progresses. As tasks complete, older completions should be " +
+      "condensed to make room. Similarly, summarized future work expands into detailed items " +
+      "as it becomes immediate. " +
+      "\n\n" +
       "Mark ONE task as in_progress at a time. " +
       "Order tasks as: completed first, then in_progress (max 1), then pending last. " +
-      "Update frequently as work progresses to provide visibility into ongoing operations. " +
       "Before finishing your response, ensure all todos are marked as completed. " +
       "Use appropriate tense in content: past tense for completed (e.g., 'Added tests'), " +
       "present progressive for in_progress (e.g., 'Adding tests'), " +