diff --git a/packages/app/src/components/sidebar-workspace-list.test.tsx b/packages/app/src/components/sidebar-workspace-list.test.tsx
index 0e1d7d28ab..fc57dc2dce 100644
--- a/packages/app/src/components/sidebar-workspace-list.test.tsx
+++ b/packages/app/src/components/sidebar-workspace-list.test.tsx
@@ -2,6 +2,7 @@
  * @vitest-environment jsdom
  */
 import { act, renderHook } from "@testing-library/react";
+import { createWorkspaceVisibilityPolicy } from "@/components/sidebar/sidebar-group-visibility";
 import { useLimitedSidebarGroup } from "@/components/sidebar/use-limited-sidebar-group";
 import type { DaemonClient } from "@getpaseo/client/internal/daemon-client";
 import type { WorkspaceScriptPayload } from "@getpaseo/protocol/messages";
@@ -486,6 +487,20 @@ describe("sidebar group visibility", () => {
     },
   );
 
+  it("treats placements without a hydrated entry as Done", () => {
+    const items = entries([...Array(8).fill("done"), "running", "done"]);
+    const hydrated = new Map(items.slice(0, 9).map((item) => [item.workspaceKey, item]));
+    for (const entriesByKey of [new Map(), hydrated]) {
+      const { result } = renderHook(() =>
+        useLimitedSidebarGroup(items, createWorkspaceVisibilityPolicy(entriesByKey)),
+      );
+      expect(result.current.canToggle).toBe(true);
+      expect(names(result.current.visibleItems)).toEqual(
+        entriesByKey.size === 0 ? names(items.slice(0, 7)) : [...names(items.slice(0, 7)), "row-9"],
+      );
+    }
+  });
+
   it("shows eight active rows once with no redundant toggle", () => {
     const items = entries([
       "running",
diff --git a/packages/app/src/components/sidebar-workspace-list.tsx b/packages/app/src/components/sidebar-workspace-list.tsx
index c3048e6d9a..16294e0a03 100644
--- a/packages/app/src/components/sidebar-workspace-list.tsx
+++ b/packages/app/src/components/sidebar-workspace-list.tsx
@@ -99,6 +99,7 @@ import {
 import { useLongPressDragInteraction } from "@/components/sidebar/use-long-press-drag-interaction";
 import { SidebarSectionHeader } from "@/components/sidebar/sidebar-section-header";
 import { SidebarGroupToggleRow } from "@/components/sidebar/sidebar-group-toggle-row";
+import { createWorkspaceVisibilityPolicy } from "@/components/sidebar/sidebar-group-visibility";
 import { useLimitedSidebarGroup } from "@/components/sidebar/use-limited-sidebar-group";
 import {
   SidebarWorkspaceRowFrame,
@@ -1593,11 +1594,7 @@ function ProjectBlock({
   onToggleWorkspacePin: ToggleSidebarWorkspacePin;
 }) {
   const visibilityPolicy = useMemo(
-    () => ({
-      kind: "workspaces" as const,
-      getStatusBucket: (workspace: SidebarWorkspacePlacement) =>
-        workspaceEntriesByKey.get(workspace.workspaceKey)!.statusBucket,
-    }),
+    () => createWorkspaceVisibilityPolicy<SidebarWorkspacePlacement>(workspaceEntriesByKey),
     [workspaceEntriesByKey],
   );
   const {
diff --git a/packages/app/src/components/sidebar/sidebar-group-visibility.ts b/packages/app/src/components/sidebar/sidebar-group-visibility.ts
index ce9f47671c..1bc3018e9a 100644
--- a/packages/app/src/components/sidebar/sidebar-group-visibility.ts
+++ b/packages/app/src/components/sidebar/sidebar-group-visibility.ts
@@ -4,6 +4,18 @@ export type SidebarGroupVisibilityPolicy<T> =
   | { kind: "pinned" }
   | { kind: "workspaces"; getStatusBucket: (item: T) => SidebarStateBucket };
 
+// A placement can outrun its entry: a retained sidebar that is inactive (compact layout with the
+// sidebar closed) or still waiting for sessions keeps an empty entry map. A missing entry renders
+// no row, so it counts as Done and claims no slot past the limit.
+export function createWorkspaceVisibilityPolicy<T extends { workspaceKey: string }>(
+  entriesByKey: ReadonlyMap<string, { statusBucket: SidebarStateBucket }>,
+): SidebarGroupVisibilityPolicy<T> {
+  return {
+    kind: "workspaces",
+    getStatusBucket: (item) => entriesByKey.get(item.workspaceKey)?.statusBucket ?? "done",
+  };
+}
+
 export function selectSidebarGroupVisibility<T>(
   items: readonly T[],
   expanded: boolean,