diff --git a/docs/terminal-activity.md b/docs/terminal-activity.md
index ab1fd7a42..24bf394a1 100644
--- a/docs/terminal-activity.md
+++ b/docs/terminal-activity.md
@@ -27,7 +27,7 @@ TerminalSession
 
 Each `onChange` delivers both the new snapshot and the `previous` one (`{ state, changedAt }`). The transition flows unchanged up through `TerminalSession.onActivityChange` (as `{ activity, previous }`), the worker protocol's `terminalActivityChange` event, and the manager-level `subscribeTerminalActivity(listener)` stream (`{ terminalId, name, cwd, activity, previous }`).
 
-The daemon's notification policy consumes these transitions, not snapshots. When a transition moves from `working` to `idle`, the websocket layer fires a "Terminal finished" attention notification. It keeps no per-terminal timing state of its own — the previous snapshot carried in the transition is the entire history it needs. A terminal that exits while still working emits no turn-end notification.
+The daemon consumes these transitions, not snapshots. When a transition moves from `working` to `idle`, the tracker records finished attention, so the terminal shows the same green finished dot as an idle agent that needs review. The websocket layer also fires a "Terminal finished" attention notification. A terminal that exits while still working emits no turn-end notification.
 
 Terminal workspace membership is path-prefix based: a terminal opened in a workspace subdirectory rolls up to the deepest active parent workspace for status buckets and notification routing.
 
@@ -62,11 +62,11 @@ OpenCode uses a server plugin instead of command hooks. The plugin listens to Op
 - `permission.asked` → `needs-input`
 - `permission.replied` → `running`
 
-The daemon maps hook states onto internal terminal activity states: `running` → `working`, `idle` → `idle`, and `needs-input` → `attention`.
+The daemon maps hook states onto terminal activity like an agent lifecycle plus unread attention: `running` → `state: working`, `idle` → `state: idle`, and `needs-input` → `state: idle` with `attentionReason: needs_input`. A `working` → `idle` transition records `state: idle` with `attentionReason: finished` until the user focuses that terminal; plain idle terminals still contribute no workspace status.
 
 ## Focus clearing
 
-Client heartbeats include the focused terminal id. When a visible client focuses a terminal that is in `attention`, the daemon clears that terminal back to `idle`. `idle` terminal activity does not contribute to workspace status, so a workspace whose only attention source was that terminal rolls up from `needs_input` back to `done`.
+Client heartbeats include the focused terminal id. When a visible client focuses a terminal with an `attentionReason`, the daemon clears the attention and leaves the terminal idle. Plain idle terminal activity does not contribute to workspace status, so a workspace whose only attention source was that terminal rolls up from `needs_input` or `attention` back to `done`.
 
 ### Agent hook installation
 
diff --git a/packages/app/src/panels/terminal-panel.tsx b/packages/app/src/panels/terminal-panel.tsx
index 1fc430fd5..88b868398 100644
--- a/packages/app/src/panels/terminal-panel.tsx
+++ b/packages/app/src/panels/terminal-panel.tsx
@@ -5,6 +5,7 @@ import { Terminal } from "lucide-react-native";
 import { Text, View } from "react-native";
 import invariant from "tiny-invariant";
 import type { ListTerminalsResponse } from "@getpaseo/protocol/messages";
+import { deriveTerminalActivityStatusBucket } from "@getpaseo/protocol/terminal-activity";
 import { TerminalPane } from "@/components/terminal-pane";
 import { usePaneContext, usePaneFocus } from "@/panels/pane-context";
 import type { PanelDescriptor, PanelRegistration } from "@/panels/panel-registry";
@@ -13,7 +14,6 @@ import { buildTerminalsQueryKey } from "@/screens/workspace/terminals/state";
 import { usePanelStore } from "@/stores/panel-store";
 import { useSessionStore } from "@/stores/session-store";
 import { useWorkspaceDirectory, useWorkspaceFields } from "@/stores/session-store-hooks";
-import { terminalActivityToStatusBucket } from "@/utils/terminal-activity-bucket";
 
 type ListTerminalsPayload = ListTerminalsResponse["payload"];
 
@@ -70,7 +70,7 @@ function useTerminalPanelDescriptor(
     subtitle: t("workspace.tabs.fallback.terminal"),
     titleState: "ready",
     icon: Terminal,
-    statusBucket: terminalActivityToStatusBucket(terminal?.activity?.state),
+    statusBucket: deriveTerminalActivityStatusBucket(terminal?.activity),
   };
 }
 
diff --git a/packages/app/src/utils/terminal-activity-bucket.test.ts b/packages/app/src/utils/terminal-activity-bucket.test.ts
deleted file mode 100644
index 89d111ab1..000000000
--- a/packages/app/src/utils/terminal-activity-bucket.test.ts
+++ /dev/null
@@ -1,20 +0,0 @@
-import { describe, expect, it } from "vitest";
-import { terminalActivityToStatusBucket } from "./terminal-activity-bucket";
-
-describe("terminalActivityToStatusBucket", () => {
-  it("maps working to running", () => {
-    expect(terminalActivityToStatusBucket("working")).toBe("running");
-  });
-
-  it("maps idle to null", () => {
-    expect(terminalActivityToStatusBucket("idle")).toBeNull();
-  });
-
-  it("maps null to null", () => {
-    expect(terminalActivityToStatusBucket(null)).toBeNull();
-  });
-
-  it("maps undefined to null", () => {
-    expect(terminalActivityToStatusBucket(undefined)).toBeNull();
-  });
-});
diff --git a/packages/app/src/utils/terminal-activity-bucket.ts b/packages/app/src/utils/terminal-activity-bucket.ts
deleted file mode 100644
index 15d02528c..000000000
--- a/packages/app/src/utils/terminal-activity-bucket.ts
+++ /dev/null
@@ -1,10 +0,0 @@
-import type { TerminalActivityState } from "@getpaseo/protocol/terminal-activity";
-import type { SidebarStateBucket } from "@/utils/sidebar-agent-state";
-
-export function terminalActivityToStatusBucket(
-  state: TerminalActivityState | null | undefined,
-): SidebarStateBucket | null {
-  if (state === "working") return "running";
-  if (state === "attention") return "needs_input";
-  return null;
-}
diff --git a/packages/protocol/src/terminal-activity.test.ts b/packages/protocol/src/terminal-activity.test.ts
index b96d8514b..3fd52552f 100644
--- a/packages/protocol/src/terminal-activity.test.ts
+++ b/packages/protocol/src/terminal-activity.test.ts
@@ -1,5 +1,10 @@
 import { describe, expect, it } from "vitest";
-import { TERMINAL_ACTIVITY_STATES, TerminalActivitySchema } from "./terminal-activity.js";
+import {
+  TERMINAL_ACTIVITY_ATTENTION_REASONS,
+  TERMINAL_ACTIVITY_STATES,
+  TerminalActivitySchema,
+  deriveTerminalActivityStatusBucket,
+} from "./terminal-activity.js";
 
 describe("TerminalActivitySchema", () => {
   it("parses the known activity states", () => {
@@ -16,4 +21,32 @@ describe("TerminalActivitySchema", () => {
     expect(parsed.state).toBe("idle");
     expect(parsed.changedAt).toBe(1718000000000);
   });
+
+  it("parses known attention reasons", () => {
+    for (const attentionReason of TERMINAL_ACTIVITY_ATTENTION_REASONS) {
+      expect(
+        TerminalActivitySchema.parse({ state: "attention", attentionReason, changedAt: 1 })
+          .attentionReason,
+      ).toBe(attentionReason);
+    }
+  });
+
+  it("maps terminal activity to workspace status buckets", () => {
+    expect(deriveTerminalActivityStatusBucket({ state: "working", changedAt: 1 })).toBe("running");
+    expect(
+      deriveTerminalActivityStatusBucket({
+        state: "idle",
+        attentionReason: "finished",
+        changedAt: 1,
+      }),
+    ).toBe("attention");
+    expect(
+      deriveTerminalActivityStatusBucket({
+        state: "idle",
+        attentionReason: "needs_input",
+        changedAt: 1,
+      }),
+    ).toBe("needs_input");
+    expect(deriveTerminalActivityStatusBucket({ state: "idle", changedAt: 1 })).toBeNull();
+  });
 });
diff --git a/packages/protocol/src/terminal-activity.ts b/packages/protocol/src/terminal-activity.ts
index 0da57505e..d90688d34 100644
--- a/packages/protocol/src/terminal-activity.ts
+++ b/packages/protocol/src/terminal-activity.ts
@@ -1,15 +1,31 @@
 import { z } from "zod";
 
 export const TERMINAL_ACTIVITY_STATES = ["idle", "working", "attention"] as const;
+export const TERMINAL_ACTIVITY_ATTENTION_REASONS = ["finished", "needs_input"] as const;
 
 export type TerminalActivityState = (typeof TERMINAL_ACTIVITY_STATES)[number];
+export type TerminalActivityAttentionReason = (typeof TERMINAL_ACTIVITY_ATTENTION_REASONS)[number];
 
 export const TerminalActivitySchema = z.object({
   // Forward-compat: a newer daemon may send a state this client doesn't know.
   // Degrade unknown states to "idle" (no indicator, no notification) so the
   // message still parses, instead of a strict enum rejecting the whole payload.
   state: z.enum(TERMINAL_ACTIVITY_STATES).catch("idle"),
+  attentionReason: z.enum(TERMINAL_ACTIVITY_ATTENTION_REASONS).nullable().optional().catch(null),
   changedAt: z.number(),
 });
 
 export type TerminalActivity = z.infer<typeof TerminalActivitySchema>;
+
+export type TerminalActivityStatusBucket = "running" | "needs_input" | "attention";
+
+export function deriveTerminalActivityStatusBucket(
+  activity: TerminalActivity | null | undefined,
+): TerminalActivityStatusBucket | null {
+  if (!activity) return null;
+  if (activity.attentionReason === "needs_input") return "needs_input";
+  if (activity.attentionReason === "finished") return "attention";
+  if (activity.state === "working") return "running";
+  if (activity.state === "attention") return "needs_input";
+  return null;
+}
diff --git a/packages/server/src/server/websocket-server.ts b/packages/server/src/server/websocket-server.ts
index f02aabd71..00a3aa4fb 100644
--- a/packages/server/src/server/websocket-server.ts
+++ b/packages/server/src/server/websocket-server.ts
@@ -27,6 +27,7 @@ import {
   wrapSessionMessage,
 } from "./messages.js";
 import { asUint8Array, decodeBinaryFrame } from "@getpaseo/protocol/binary-frames/index";
+import type { TerminalActivity } from "@getpaseo/protocol/terminal-activity";
 import type { HostnamesConfig } from "./hostnames.js";
 import { isHostnameAllowed } from "./hostnames.js";
 import { Session, type SessionLifecycleIntent, type SessionRuntimeMetrics } from "./session.js";
@@ -84,9 +85,12 @@ type WebSocketRuntimeMetrics = SessionRuntimeMetrics & CheckoutDiffMetrics;
 type TerminalAttentionReason = "finished" | "needs_input";
 
 function resolveTerminalAttentionReason(input: {
+  attentionReason?: TerminalActivity["attentionReason"];
   previousState: "working" | "idle" | "attention" | null;
   state: "working" | "idle" | "attention" | null;
 }): TerminalAttentionReason | null {
+  if (input.attentionReason === "finished") return "finished";
+  if (input.attentionReason === "needs_input") return "needs_input";
   if (input.state === "attention") return "needs_input";
   if (input.previousState === "working" && input.state === "idle") return "finished";
   return null;
@@ -556,6 +560,7 @@ export class VoiceAssistantWebSocketServer {
     if (this.terminalManager) {
       this.unsubscribeTerminalActivity = this.terminalManager.subscribeTerminalActivity((event) => {
         const reason = resolveTerminalAttentionReason({
+          attentionReason: event.activity?.attentionReason,
           previousState: event.previous?.state ?? null,
           state: event.activity?.state ?? null,
         });
diff --git a/packages/server/src/server/workspace-directory.test.ts b/packages/server/src/server/workspace-directory.test.ts
index 4e881f356..9e51023fe 100644
--- a/packages/server/src/server/workspace-directory.test.ts
+++ b/packages/server/src/server/workspace-directory.test.ts
@@ -177,6 +177,13 @@ class WorkspaceStatus {
     });
   }
 
+  hasFinishedTerminal(changedAt: number): void {
+    this.terminals.push({
+      cwd: this.workspace.cwd,
+      activity: { state: "idle", attentionReason: "finished", changedAt },
+    });
+  }
+
   hasUnknownTerminal(): void {
     this.terminals.push({
       cwd: this.workspace.cwd,
@@ -342,6 +349,15 @@ describe("WorkspaceDirectory", () => {
     await expect(workspace.workspaceStatus()).resolves.toBe("running");
   });
 
+  test("finished terminal contributes attention to workspace status", async () => {
+    const workspace = new WorkspaceStatus();
+    const changedAt = new Date(NOW).getTime();
+
+    workspace.hasFinishedTerminal(changedAt);
+
+    await expect(workspace.workspaceStatus()).resolves.toBe("attention");
+  });
+
   test("idle terminal contributes nothing to workspace status", async () => {
     const workspace = new WorkspaceStatus();
     const changedAt = new Date(NOW).getTime();
diff --git a/packages/server/src/server/workspace-directory.ts b/packages/server/src/server/workspace-directory.ts
index 85fb837ea..9fa846cf1 100644
--- a/packages/server/src/server/workspace-directory.ts
+++ b/packages/server/src/server/workspace-directory.ts
@@ -20,7 +20,10 @@ import {
   resolveActiveWorkspaceRecordForCwd,
   resolveWorkspaceIdForRecord,
 } from "./workspace-registry-model.js";
-import type { TerminalActivity } from "@getpaseo/protocol/terminal-activity";
+import {
+  deriveTerminalActivityStatusBucket,
+  type TerminalActivity,
+} from "@getpaseo/protocol/terminal-activity";
 
 type WorkspaceIdResolver = (cwd: string) => string | undefined;
 
@@ -359,14 +362,8 @@ export class WorkspaceDirectory {
       if (!activity) {
         continue;
       }
-      let bucket: WorkspaceStateBucket;
-      if (activity.state === "working") {
-        bucket = "running";
-      } else if (activity.state === "attention") {
-        bucket = "needs_input";
-      } else {
-        continue;
-      }
+      const bucket = deriveTerminalActivityStatusBucket(activity);
+      if (!bucket) continue;
       const workspaceId =
         resolveWorkspaceIdForRecord({ workspaceId: contributedWorkspaceId, cwd }, activeRecords) ??
         resolveWorkspaceIdForCwd(cwd);
diff --git a/packages/server/src/terminal/activity/terminal-activity-tracker.test.ts b/packages/server/src/terminal/activity/terminal-activity-tracker.test.ts
index de1c6dc73..62afa6658 100644
--- a/packages/server/src/terminal/activity/terminal-activity-tracker.test.ts
+++ b/packages/server/src/terminal/activity/terminal-activity-tracker.test.ts
@@ -18,6 +18,31 @@ describe("TerminalActivityTracker — set", () => {
 
     expect(tracker.getSnapshot().state).toBe("working");
   });
+
+  it("marks a working to idle transition as finished attention", () => {
+    const tracker = new TerminalActivityTracker();
+
+    tracker.set("working");
+    tracker.set("idle");
+
+    expect(tracker.getSnapshot()).toMatchObject({
+      state: "idle",
+      attentionReason: "finished",
+    });
+  });
+
+  it("keeps finished attention across repeated idle reports", () => {
+    const tracker = new TerminalActivityTracker();
+
+    tracker.set("working");
+    tracker.set("idle");
+    tracker.set("idle");
+
+    expect(tracker.getSnapshot()).toMatchObject({
+      state: "idle",
+      attentionReason: "finished",
+    });
+  });
 });
 
 describe("TerminalActivityTracker — clearAttention", () => {
@@ -27,7 +52,7 @@ describe("TerminalActivityTracker — clearAttention", () => {
     tracker.set("attention");
 
     expect(tracker.clearAttention()).toBe(true);
-    expect(tracker.getSnapshot().state).toBe("idle");
+    expect(tracker.getSnapshot()).toMatchObject({ state: "idle", attentionReason: null });
   });
 
   it("leaves non-attention states unchanged", () => {
@@ -102,7 +127,10 @@ describe("TerminalActivityTracker — onChange listener", () => {
     expect(transitions[0].previous.state).toBeNull();
     expect(transitions[0].snapshot.state).toBe("working");
     expect(transitions[1].previous).toEqual(transitions[0].snapshot);
-    expect(transitions[1].snapshot.state).toBe("idle");
+    expect(transitions[1].snapshot).toMatchObject({
+      state: "idle",
+      attentionReason: "finished",
+    });
   });
 });
 
diff --git a/packages/server/src/terminal/activity/terminal-activity-tracker.ts b/packages/server/src/terminal/activity/terminal-activity-tracker.ts
index 82d3a410b..168e12a25 100644
--- a/packages/server/src/terminal/activity/terminal-activity-tracker.ts
+++ b/packages/server/src/terminal/activity/terminal-activity-tracker.ts
@@ -1,13 +1,18 @@
-import type { TerminalActivityState } from "@getpaseo/protocol/terminal-activity";
+import type {
+  TerminalActivityAttentionReason,
+  TerminalActivityState,
+} from "@getpaseo/protocol/terminal-activity";
 
 export interface TerminalActivitySnapshot {
   state: TerminalActivityState | null;
+  attentionReason: TerminalActivityAttentionReason | null;
   changedAt: number;
 }
 
 export class TerminalActivityTracker {
   // unknown != idle: a plain shell, or a terminal whose agent was killed, has no dot or rollup.
   private resolvedState: TerminalActivityState | null = null;
+  private attentionReason: TerminalActivityAttentionReason | null = null;
   private changedAt = Date.now();
 
   private readonly changeListeners = new Set<
@@ -15,28 +20,44 @@ export class TerminalActivityTracker {
   >();
 
   set(state: TerminalActivityState): void {
-    this.setState(state);
+    if (state === "idle" && this.resolvedState === "working") {
+      this.setState("idle", "finished");
+      return;
+    }
+
+    if (state === "idle" && this.attentionReason === "finished") {
+      return;
+    }
+
+    this.setState(
+      state === "attention" ? "idle" : state,
+      state === "attention" ? "needs_input" : null,
+    );
   }
 
   clear(): void {
-    this.setState(null);
+    this.setState(null, null);
   }
 
   clearAttention(): boolean {
-    if (this.resolvedState !== "attention") {
+    if (!this.attentionReason) {
       return false;
     }
-    this.setState("idle");
+    this.setState("idle", null);
     return true;
   }
 
-  private setState(state: TerminalActivityState | null): void {
-    if (state === this.resolvedState) {
+  private setState(
+    state: TerminalActivityState | null,
+    attentionReason: TerminalActivityAttentionReason | null,
+  ): void {
+    if (state === this.resolvedState && attentionReason === this.attentionReason) {
       return;
     }
 
     const previous = this.getSnapshot();
     this.resolvedState = state;
+    this.attentionReason = attentionReason;
     this.changedAt = Date.now();
 
     const snapshot = this.getSnapshot();
@@ -57,6 +78,7 @@ export class TerminalActivityTracker {
   getSnapshot(): TerminalActivitySnapshot {
     return {
       state: this.resolvedState,
+      attentionReason: this.attentionReason,
       changedAt: this.changedAt,
     };
   }
diff --git a/packages/server/src/terminal/terminal.ts b/packages/server/src/terminal/terminal.ts
index 032849ff8..526687ce8 100644
--- a/packages/server/src/terminal/terminal.ts
+++ b/packages/server/src/terminal/terminal.ts
@@ -132,12 +132,17 @@ export interface CreateTerminalOptions {
 
 function toTerminalActivity(snapshot: {
   state: TerminalActivityState | null;
+  attentionReason?: TerminalActivity["attentionReason"];
   changedAt: number;
 }): TerminalActivity | null {
   if (!snapshot.state) {
     return null;
   }
-  return { state: snapshot.state, changedAt: snapshot.changedAt };
+  return {
+    state: snapshot.state,
+    ...(snapshot.attentionReason ? { attentionReason: snapshot.attentionReason } : {}),
+    changedAt: snapshot.changedAt,
+  };
 }
 
 function resolveInitialTitleMode(presetTitle: string | undefined): "auto" | "manual" {