diff --git a/src/components/PinnedTodoList.tsx b/src/components/PinnedTodoList.tsx
index 21f57d3af..2e06db5fe 100644
--- a/src/components/PinnedTodoList.tsx
+++ b/src/components/PinnedTodoList.tsx
@@ -27,7 +27,17 @@ export const PinnedTodoList: React.FC<PinnedTodoListProps> = ({ workspaceId }) =
     () => workspaceStore.getWorkspaceState(workspaceId).todos
   );
 
-  if (todos.length === 0) {
+  // Get streaming state
+  const canInterrupt = useSyncExternalStore(
+    (callback) => workspaceStore.subscribeKey(workspaceId, callback),
+    () => workspaceStore.getWorkspaceState(workspaceId).canInterrupt
+  );
+
+  // When idle (not streaming), only show completed todos for clean summary
+  // When streaming, show all todos so user can see active work
+  const displayTodos = canInterrupt ? todos : todos.filter((todo) => todo.status === "completed");
+
+  if (displayTodos.length === 0) {
     return null;
   }
 
@@ -47,7 +57,7 @@ export const PinnedTodoList: React.FC<PinnedTodoListProps> = ({ workspaceId }) =
         </span>
         TODO{expanded ? ":" : ""}
       </div>
-      {expanded && <TodoList todos={todos} />}
+      {expanded && <TodoList todos={displayTodos} />}
     </div>
   );
 };
diff --git a/src/utils/tools/toolDefinitions.ts b/src/utils/tools/toolDefinitions.ts
index 58fb11f81..a310d8e13 100644
--- a/src/utils/tools/toolDefinitions.ts
+++ b/src/utils/tools/toolDefinitions.ts
@@ -183,12 +183,17 @@ export const TOOL_DEFINITIONS = {
   },
   status_set: {
     description:
-      "Set a status indicator to show what the agent is currently doing. " +
-      "The emoji appears left of the streaming indicator, and the message shows on hover. " +
-      "The status is set IMMEDIATELY when this tool is called, even before other tool calls complete. " +
-      "IMPORTANT: Always set a status at the start of each response and update it as your work progresses. " +
-      "The status is cleared when a new user message comes in, so you must set it again for each response. " +
-      "Use this to communicate ongoing activities and set a final status before completing that reflects the outcome.",
+      "Set a status indicator to show what Assistant is currently doing. The status is set IMMEDIATELY \n" +
+      "when this tool is called, even before other tool calls complete.\n" +
+      "\n" +
+      "WHEN TO SET STATUS:\n" +
+      "- Set status when beginning concrete work (file edits, running tests, executing commands)\n" +
+      "- Update status as work progresses through distinct phases\n" +
+      "- Set a final status before completing that reflects the outcome\n" +
+      "- DO NOT set status during initial exploration, file reading, or planning phases\n" +
+      "\n" +
+      "The status is cleared when a new user message comes in. Validate your approach is feasible \n" +
+      "before setting status - failed tool calls after setting status indicate premature commitment.",
     schema: z
       .object({
         emoji: z.string().describe("A single emoji character representing the current activity"),