diff --git a/packages/ui/src/components/instance-tab.tsx b/packages/ui/src/components/instance-tab.tsx
index 5c4e821b..fc3a8272 100644
--- a/packages/ui/src/components/instance-tab.tsx
+++ b/packages/ui/src/components/instance-tab.tsx
@@ -1,5 +1,6 @@
-import { Component } from "solid-js"
+import { Component, createMemo } from "solid-js"
 import type { Instance } from "../types/instance"
+import { getInstanceSessionIndicatorStatus } from "../stores/session-status"
 import { FolderOpen, X } from "lucide-solid"
 
 interface InstanceTabProps {
@@ -26,6 +27,24 @@ function formatFolderName(path: string, instances: Instance[], currentInstance:
 }
 
 const InstanceTab: Component<InstanceTabProps> = (props) => {
+  const aggregatedStatus = createMemo(() => getInstanceSessionIndicatorStatus(props.instance.id))
+  const statusClassName = createMemo(() => {
+    const status = aggregatedStatus()
+    return status === "permission" ? "session-permission" : `session-${status}`
+  })
+  const statusTitle = createMemo(() => {
+    switch (aggregatedStatus()) {
+      case "permission":
+        return "Waiting on permission"
+      case "compacting":
+        return "Compacting"
+      case "working":
+        return "Working"
+      default:
+        return "Idle"
+    }
+  })
+
   return (
     <div class="group">
       <button
@@ -40,7 +59,14 @@ const InstanceTab: Component<InstanceTabProps> = (props) => {
           {props.instance.folder.split("/").pop() || props.instance.folder}
         </span>
         <span
-          class="tab-close ml-auto"
+          class={`status-indicator session-status ml-auto ${statusClassName()}`}
+          title={statusTitle()}
+          aria-label={`Instance status: ${statusTitle()}`}
+        >
+          <span class="status-dot" />
+        </span>
+        <span
+          class="tab-close"
           onClick={(e) => {
             e.stopPropagation()
             props.onClose()
diff --git a/packages/ui/src/stores/session-status.ts b/packages/ui/src/stores/session-status.ts
index 81da79f7..f895441b 100644
--- a/packages/ui/src/stores/session-status.ts
+++ b/packages/ui/src/stores/session-status.ts
@@ -170,6 +170,47 @@ export function getSessionStatus(instanceId: string, sessionId: string): Session
   return session.status ?? deriveSessionStatusFromMessages(instanceId, sessionId)
 }
 
+export type InstanceSessionIndicatorStatus = "permission" | SessionStatus
+
+export function getInstanceSessionIndicatorStatus(instanceId: string): InstanceSessionIndicatorStatus {
+  const instanceSessions = sessions().get(instanceId)
+  if (!instanceSessions || instanceSessions.size === 0) {
+    return "idle"
+  }
+
+  let bestRank = 0
+  let best: InstanceSessionIndicatorStatus = "idle"
+
+  for (const session of instanceSessions.values()) {
+    let rank = 0
+    let status: InstanceSessionIndicatorStatus = "idle"
+
+    if (session.pendingPermission) {
+      status = "permission"
+      rank = 3
+    } else {
+      const sessionStatus = getSessionStatus(instanceId, session.id)
+      if (sessionStatus === "compacting") {
+        status = "compacting"
+        rank = 2
+      } else if (sessionStatus === "working") {
+        status = "working"
+        rank = 1
+      }
+    }
+
+    if (rank > bestRank) {
+      bestRank = rank
+      best = status
+      if (bestRank === 3) {
+        break
+      }
+    }
+  }
+
+  return best
+}
+
 export function isSessionBusy(instanceId: string, sessionId: string): boolean {
   const status = getSessionStatus(instanceId, sessionId)
   return status === "working" || status === "compacting"