diff --git a/frontend/__tests__/components/chat-status-indicator.test.tsx b/frontend/__tests__/components/chat-status-indicator.test.tsx
new file mode 100644
index 0000000000..06eaa86e74
--- /dev/null
+++ b/frontend/__tests__/components/chat-status-indicator.test.tsx
@@ -0,0 +1,48 @@
+import { render, screen } from "@testing-library/react";
+import { describe, it, expect, vi } from "vitest";
+import ChatStatusIndicator from "#/components/features/chat/chat-status-indicator";
+
+vi.mock("#/icons/debug-stackframe-dot.svg?react", () => ({
+  default: (props: any) => (
+    <svg data-testid="debug-stackframe-dot" {...props} />
+  ),
+}));
+
+describe("ChatStatusIndicator", () => {
+  it("renders the status indicator with status text", () => {
+    render(
+      <ChatStatusIndicator
+        status="Waiting for sandbox"
+        statusColor="#FFD600"
+      />
+    );
+
+    expect(
+      screen.getByTestId("chat-status-indicator"),
+    ).toBeInTheDocument();
+    expect(screen.getByText("Waiting for sandbox")).toBeInTheDocument();
+  });
+
+  it("passes the statusColor to the DebugStackframeDot icon", () => {
+    render(
+      <ChatStatusIndicator
+        status="Error"
+        statusColor="#FF684E"
+      />
+    );
+
+    const icon = screen.getByTestId("debug-stackframe-dot");
+    expect(icon).toHaveAttribute("color", "#FF684E");
+  });
+
+  it("renders the DebugStackframeDot icon", () => {
+    render(
+      <ChatStatusIndicator
+        status="Loading"
+        statusColor="#FFD600"
+      />
+    );
+
+    expect(screen.getByTestId("debug-stackframe-dot")).toBeInTheDocument();
+  });
+});
diff --git a/frontend/__tests__/components/chat/chat-interface.test.tsx b/frontend/__tests__/components/chat/chat-interface.test.tsx
index 43da7cfae7..7e8f0b8d2b 100644
--- a/frontend/__tests__/components/chat/chat-interface.test.tsx
+++ b/frontend/__tests__/components/chat/chat-interface.test.tsx
@@ -24,6 +24,8 @@ import { useGetTrajectory } from "#/hooks/mutation/use-get-trajectory";
 import { useUnifiedUploadFiles } from "#/hooks/mutation/use-unified-upload-files";
 import { OpenHandsAction } from "#/types/core/actions";
 import { useEventStore } from "#/stores/use-event-store";
+import { useAgentState } from "#/hooks/use-agent-state";
+import { AgentState } from "#/types/agent-state";
 
 vi.mock("#/context/ws-client-provider");
 vi.mock("#/hooks/query/use-config");
@@ -59,6 +61,12 @@ vi.mock("#/hooks/use-conversation-name-context-menu", () => ({
   }),
 }));
 
+vi.mock("#/hooks/use-agent-state", () => ({
+  useAgentState: vi.fn(() => ({
+    curAgentState: AgentState.AWAITING_USER_INPUT,
+  })),
+}));
+
 // Helper function to render with Router context
 const renderChatInterfaceWithRouter = () =>
   renderWithProviders(
@@ -344,6 +352,28 @@ describe("ChatInterface - Empty state", () => {
   );
 });
 
+describe('ChatInterface - Status Indicator', () => {
+  it("should render ChatStatusIndicator when agent is not awaiting user input / conversation is NOT ready", () => {
+    vi.mocked(useAgentState).mockReturnValue({
+      curAgentState: AgentState.LOADING,
+    });
+
+    renderChatInterfaceWithRouter();
+
+    expect(screen.getByTestId("chat-status-indicator")).toBeInTheDocument();
+  });
+
+  it("should NOT render ChatStatusIndicator when agent is awaiting user input / conversation is ready", () => {
+    vi.mocked(useAgentState).mockReturnValue({
+      curAgentState: AgentState.AWAITING_USER_INPUT,
+    });
+
+    renderChatInterfaceWithRouter();
+
+    expect(screen.queryByTestId("chat-status-indicator")).not.toBeInTheDocument();
+  });
+});
+
 describe.skip("ChatInterface - General functionality", () => {
   beforeAll(() => {
     // mock useScrollToBottom hook
diff --git a/frontend/__tests__/utils/utils.test.ts b/frontend/__tests__/utils/utils.test.ts
index 7dc9df0254..91e9ba031b 100644
--- a/frontend/__tests__/utils/utils.test.ts
+++ b/frontend/__tests__/utils/utils.test.ts
@@ -1,9 +1,26 @@
-import { test, expect } from "vitest";
+import { describe, it, expect, vi, test } from "vitest";
 import {
   formatTimestamp,
   getExtension,
   removeApiKey,
 } from "../../src/utils/utils";
+import { getStatusText } from "#/utils/utils";
+import { AgentState } from "#/types/agent-state";
+import { I18nKey } from "#/i18n/declaration";
+
+// Mock translations
+const t = (key: string) => {
+  const translations: { [key: string]: string } = {
+    COMMON$WAITING_FOR_SANDBOX: "Waiting For Sandbox",
+    COMMON$STOPPING: "Stopping",
+    COMMON$STARTING: "Starting",
+    COMMON$SERVER_STOPPED: "Server stopped",
+    COMMON$RUNNING: "Running",
+    CONVERSATION$READY: "Ready",
+    CONVERSATION$ERROR_STARTING_CONVERSATION: "Error starting conversation",
+  };
+  return translations[key] || key;
+};
 
 test("removeApiKey", () => {
   const data = [{ args: { LLM_API_KEY: "key", LANGUAGE: "en" } }];
@@ -23,3 +40,143 @@ test("formatTimestamp", () => {
   const eveningDate = new Date("2021-10-10T22:10:10.000").toISOString();
   expect(formatTimestamp(eveningDate)).toBe("10/10/2021, 22:10:10");
 });
+
+describe("getStatusText", () => {
+  it("returns STOPPING when pausing", () => {
+    const result = getStatusText({
+      isPausing: true,
+      isTask: false,
+      taskStatus: null,
+      taskDetail: null,
+      isStartingStatus: false,
+      isStopStatus: false,
+      curAgentState: AgentState.RUNNING,
+      t,
+    });
+
+    expect(result).toBe(t(I18nKey.COMMON$STOPPING));
+  });
+
+  it("formats task status when polling a task", () => {
+    const result = getStatusText({
+      isPausing: false,
+      isTask: true,
+      taskStatus: "WAITING_FOR_SANDBOX",
+      taskDetail: null,
+      isStartingStatus: false,
+      isStopStatus: false,
+      curAgentState: AgentState.RUNNING,
+      t,
+    });
+
+    expect(result).toBe(t(I18nKey.COMMON$WAITING_FOR_SANDBOX));
+  });
+
+  it("returns task detail when task status is ERROR and detail exists", () => {
+    const result = getStatusText({
+      isPausing: false,
+      isTask: true,
+      taskStatus: "ERROR",
+      taskDetail: "Sandbox failed",
+      isStartingStatus: false,
+      isStopStatus: false,
+      curAgentState: AgentState.RUNNING,
+      t,
+    });
+
+    expect(result).toBe("Sandbox failed");
+  });
+
+  it("returns translated error when task status is ERROR and no detail", () => {
+    const result = getStatusText({
+      isPausing: false,
+      isTask: true,
+      taskStatus: "ERROR",
+      taskDetail: null,
+      isStartingStatus: false,
+      isStopStatus: false,
+      curAgentState: AgentState.RUNNING,
+      t,
+    });
+
+    expect(result).toBe(
+     t(I18nKey.CONVERSATION$ERROR_STARTING_CONVERSATION),
+    );
+  });
+
+  it("returns READY translation when task is ready", () => {
+    const result = getStatusText({
+      isPausing: false,
+      isTask: true,
+      taskStatus: "READY",
+      taskDetail: null,
+      isStartingStatus: false,
+      isStopStatus: false,
+      curAgentState: AgentState.RUNNING,
+      t,
+    });
+
+    expect(result).toBe(t(I18nKey.CONVERSATION$READY));
+  });
+
+  it("returns STARTING when starting status is true", () => {
+    const result = getStatusText({
+      isPausing: false,
+      isTask: false,
+      taskStatus: null,
+      taskDetail: null,
+      isStartingStatus: true,
+      isStopStatus: false,
+      curAgentState: AgentState.INIT,
+      t,
+    });
+
+    expect(result).toBe(t(I18nKey.COMMON$STARTING));
+  });
+
+  it("returns SERVER_STOPPED when stop status is true", () => {
+    const result = getStatusText({
+      isPausing: false,
+      isTask: false,
+      taskStatus: null,
+      taskDetail: null,
+      isStartingStatus: false,
+      isStopStatus: true,
+      curAgentState: AgentState.STOPPED,
+      t,
+    });
+
+    expect(result).toBe(t(I18nKey.COMMON$SERVER_STOPPED));
+  });
+
+  it("returns errorMessage when agent state is ERROR", () => {
+    const result = getStatusText({
+      isPausing: false,
+      isTask: false,
+      taskStatus: null,
+      taskDetail: null,
+      isStartingStatus: false,
+      isStopStatus: false,
+      curAgentState: AgentState.ERROR,
+      errorMessage: "Something broke",
+      t,
+    });
+
+    expect(result).toBe("Something broke");
+  });
+
+  it("returns default RUNNING status", () => {
+    const result = getStatusText({
+      isPausing: false,
+      isTask: false,
+      taskStatus: null,
+      taskDetail: null,
+      isStartingStatus: false,
+      isStopStatus: false,
+      curAgentState: AgentState.RUNNING,
+      t,
+    });
+
+    expect(result).toBe(t(I18nKey.COMMON$RUNNING));
+  });
+});
diff --git a/frontend/src/components/features/chat/chat-interface.tsx b/frontend/src/components/features/chat/chat-interface.tsx
index 84c269dac3..1a3b169198 100644
--- a/frontend/src/components/features/chat/chat-interface.tsx
+++ b/frontend/src/components/features/chat/chat-interface.tsx
@@ -49,6 +49,8 @@ import {
 import { useActiveConversation } from "#/hooks/query/use-active-conversation";
 import { useTaskPolling } from "#/hooks/query/use-task-polling";
 import { useConversationWebSocket } from "#/contexts/conversation-websocket-context";
+import ChatStatusIndicator from "./chat-status-indicator";
+import { getStatusColor, getStatusText } from "#/utils/utils";
 
 function getEntryPoint(
   hasRepository: boolean | null,
@@ -65,7 +67,7 @@ export function ChatInterface() {
   const { data: conversation } = useActiveConversation();
   const { errorMessage } = useErrorMessageStore();
   const { isLoadingMessages } = useWsClient();
-  const { isTask } = useTaskPolling();
+  const { isTask, taskStatus, taskDetail } = useTaskPolling();
   const conversationWebSocket = useConversationWebSocket();
   const { send } = useSendMessage();
   const storeEvents = useEventStore((state) => state.events);
@@ -235,6 +237,31 @@ export function ChatInterface() {
   const v1UserEventsExist = hasV1UserEvent(v1FullEvents);
   const userEventsExist = v0UserEventsExist || v1UserEventsExist;
 
+  // Get server status indicator props
+  const isStartingStatus =
+    curAgentState === AgentState.LOADING || curAgentState === AgentState.INIT;
+  const isStopStatus = curAgentState === AgentState.STOPPED;
+  const isPausing = curAgentState === AgentState.PAUSED;
+  const serverStatusColor = getStatusColor({
+    isPausing,
+    isTask,
+    taskStatus,
+    isStartingStatus,
+    isStopStatus,
+    curAgentState,
+  });
+  const serverStatusText = getStatusText({
+    isPausing,
+    isTask,
+    taskStatus,
+    taskDetail,
+    isStartingStatus,
+    isStopStatus,
+    curAgentState,
+    errorMessage,
+    t,
+  });
+
   return (
     <ScrollProvider value={scrollProviderValue}>
       <div className="h-full flex flex-col justify-between pr-0 md:pr-4 relative">
@@ -282,8 +309,14 @@ export function ChatInterface() {
 
         <div className="flex flex-col gap-[6px]">
           <div className="flex justify-between relative">
-            <div className="flex items-center gap-1">
+            <div className="flex items-end gap-1">
               <ConfirmationModeEnabled />
+              {isStartingStatus && (
+                <ChatStatusIndicator
+                  statusColor={serverStatusColor}
+                  status={serverStatusText}
+                />
+              )}
               {totalEvents > 0 && !isV1Conversation && (
                 <TrajectoryActions
                   onPositiveFeedback={() =>
diff --git a/frontend/src/components/features/chat/chat-status-indicator.tsx b/frontend/src/components/features/chat/chat-status-indicator.tsx
new file mode 100644
index 0000000000..de23b980fe
--- /dev/null
+++ b/frontend/src/components/features/chat/chat-status-indicator.tsx
@@ -0,0 +1,53 @@
+import { cn } from "@heroui/react";
+import { motion, AnimatePresence } from "framer-motion";
+import DebugStackframeDot from "#/icons/debug-stackframe-dot.svg?react";
+
+interface ChatStatusIndicatorProps {
+  status: string;
+  statusColor: string;
+}
+
+function ChatStatusIndicator({
+  status,
+  statusColor,
+}: ChatStatusIndicatorProps) {
+  return (
+    <div
+      data-testid="chat-status-indicator"
+      className={cn(
+        "h-[31px] w-fit rounded-[100px] pt-[20px] pr-[16px] pb-[20px] pl-[5px] bg-[#25272D] flex items-center gap-2",
+      )}
+    >
+      <AnimatePresence mode="wait">
+        {/* Dot */}
+        <motion.span
+          key={`dot-${status}`}
+          className="animate-[pulse_1.2s_ease-in-out_infinite]"
+          initial={{ opacity: 0 }}
+          animate={{ opacity: 1 }}
+          exit={{ opacity: 0 }}
+          transition={{ duration: 0.3 }}
+        >
+          <DebugStackframeDot
+            className="w-6 h-6 shrink-0"
+            color={statusColor}
+          />
+        </motion.span>
+
+        {/* Text */}
+        <motion.span
+          key={`text-${status}`}
+          initial={{ opacity: 0, y: -2 }}
+          animate={{ opacity: 1, y: 0 }}
+          exit={{ opacity: 0, y: 2 }}
+          transition={{ duration: 0.3 }}
+          className="font-normal text-[11px] leading-[20px] normal-case"
+        >
+          {status}
+        </motion.span>
+      </AnimatePresence>
+    </div>
+  );
+}
+
+export default ChatStatusIndicator;
diff --git a/frontend/src/components/features/controls/server-status.tsx b/frontend/src/components/features/controls/server-status.tsx
index e79d4215ea..eec5ed565b 100644
--- a/frontend/src/components/features/controls/server-status.tsx
+++ b/frontend/src/components/features/controls/server-status.tsx
@@ -1,11 +1,10 @@
 import { useTranslation } from "react-i18next";
 import DebugStackframeDot from "#/icons/debug-stackframe-dot.svg?react";
-import { I18nKey } from "#/i18n/declaration";
 import { ConversationStatus } from "#/types/conversation-status";
 import { AgentState } from "#/types/agent-state";
 import { useAgentState } from "#/hooks/use-agent-state";
 import { useTaskPolling } from "#/hooks/query/use-task-polling";
-import { getStatusColor } from "#/utils/utils";
+import { getStatusColor, getStatusText } from "#/utils/utils";
 import { useErrorMessageStore } from "#/stores/error-message-store";
 
 export interface ServerStatusProps {
@@ -20,13 +19,12 @@ export function ServerStatus({
   isPausing = false,
 }: ServerStatusProps) {
   const { curAgentState } = useAgentState();
-  const { t } = useTranslation();
   const { isTask, taskStatus, taskDetail } = useTaskPolling();
+  const { t } = useTranslation();
   const { errorMessage } = useErrorMessageStore();
 
   const isStartingStatus =
     curAgentState === AgentState.LOADING || curAgentState === AgentState.INIT;
-
   const isStopStatus = conversationStatus === "STOPPED";
 
   const statusColor = getStatusColor({
@@ -38,45 +36,17 @@ export function ServerStatus({
     curAgentState,
   });
 
-  const getStatusText = (): string => {
-    // Show pausing status
-    if (isPausing) {
-      return t(I18nKey.COMMON$STOPPING);
-    }
-
-    // Show task status if we're polling a task
-    if (isTask && taskStatus) {
-      if (taskStatus === "ERROR") {
-        return (
-          taskDetail || t(I18nKey.CONVERSATION$ERROR_STARTING_CONVERSATION)
-        );
-      }
-      if (taskStatus === "READY") {
-        return t(I18nKey.CONVERSATION$READY);
-      }
-      // Format status text: "WAITING_FOR_SANDBOX" -> "Waiting for sandbox"
-      return (
-        taskDetail ||
-        taskStatus
-          .toLowerCase()
-          .replace(/_/g, " ")
-          .replace(/\b\w/g, (c) => c.toUpperCase())
-      );
-    }
-
-    if (isStartingStatus) {
-      return t(I18nKey.COMMON$STARTING);
-    }
-    if (isStopStatus) {
-      return t(I18nKey.COMMON$SERVER_STOPPED);
-    }
-    if (curAgentState === AgentState.ERROR) {
-      return errorMessage || t(I18nKey.COMMON$ERROR);
-    }
-    return t(I18nKey.COMMON$RUNNING);
-  };
-
-  const statusText = getStatusText();
+  const statusText = getStatusText({
+    isPausing,
+    isTask,
+    taskStatus,
+    taskDetail,
+    isStartingStatus,
+    isStopStatus,
+    curAgentState,
+    errorMessage,
+    t,
+  });
 
   return (
     <div className={className} data-testid="server-status">
diff --git a/frontend/src/i18n/declaration.ts b/frontend/src/i18n/declaration.ts
index 30645cb4f7..4499695392 100644
--- a/frontend/src/i18n/declaration.ts
+++ b/frontend/src/i18n/declaration.ts
@@ -929,6 +929,7 @@ export enum I18nKey {
   COMMON$RECENT_PROJECTS = "COMMON$RECENT_PROJECTS",
   COMMON$RUN = "COMMON$RUN",
   COMMON$RUNNING = "COMMON$RUNNING",
+  COMMON$WAITING_FOR_SANDBOX = "COMMON$WAITING_FOR_SANDBOX",
   COMMON$SELECT_GIT_PROVIDER = "COMMON$SELECT_GIT_PROVIDER",
   COMMON$SERVER_STATUS = "COMMON$SERVER_STATUS",
   COMMON$SERVER_STOPPED = "COMMON$SERVER_STOPPED",
diff --git a/frontend/src/i18n/translation.json b/frontend/src/i18n/translation.json
index 5c1f36af07..a602b90777 100644
--- a/frontend/src/i18n/translation.json
+++ b/frontend/src/i18n/translation.json
@@ -14863,6 +14863,22 @@
     "de": "Läuft",
     "uk": "Працює"
   },
+  "COMMON$WAITING_FOR_SANDBOX": {
+    "en": "Waiting for sandbox",
+    "ja": "サンドボックスを待機中",
+    "zh-CN": "等待沙盒",
+    "zh-TW": "等待沙盒",
+    "ko-KR": "샌드박스를 기다리는 중",
+    "no": "Venter på sandkasse",
+    "it": "In attesa del sandbox",
+    "pt": "Aguardando sandbox",
+    "es": "Esperando el sandbox",
+    "ar": "في انتظار البيئة المعزولة",
+    "fr": "En attente du bac à sable",
+    "tr": "Sandbox bekleniyor",
+    "de": "Warten auf Sandbox",
+    "uk": "Очікування пісочниці"
+  },
   "COMMON$SELECT_GIT_PROVIDER": {
     "en": "Select Git provider",
     "ja": "Gitプロバイダーを選択",
diff --git a/frontend/src/utils/utils.ts b/frontend/src/utils/utils.ts
index c3d6a900c4..3c7e58f398 100644
--- a/frontend/src/utils/utils.ts
+++ b/frontend/src/utils/utils.ts
@@ -7,6 +7,7 @@ import { GitRepository } from "#/types/git";
 import { sanitizeQuery } from "#/utils/sanitize-query";
 import { PRODUCT_URL } from "#/utils/constants";
 import { AgentState } from "#/types/agent-state";
+import { I18nKey } from "#/i18n/declaration";
 
 export function cn(...inputs: ClassValue[]) {
   return twMerge(clsx(inputs));
@@ -746,3 +747,91 @@ export const getStatusColor = (options: {
   }
   return "#BCFF8C";
 };
+
+interface GetStatusTextArgs {
+  isPausing: boolean;
+  isTask: boolean;
+  taskStatus?: string | null;
+  taskDetail?: string | null;
+  isStartingStatus: boolean;
+  isStopStatus: boolean;
+  curAgentState: AgentState;
+  errorMessage?: string | null;
+  t: (t: string) => string;
+}
+
+/**
+ * Get the server status text based on agent and task state
+ *
+ * @param options Configuration object for status text calculation
+ * @param options.isPausing Whether the agent is currently pausing
+ * @param options.isTask Whether we're polling a task
+ * @param options.taskStatus The task status string (e.g., "ERROR", "READY")
+ * @param options.taskDetail Optional task-specific detail text
+ * @param options.isStartingStatus Whether the conversation is in STARTING state
+ * @param options.isStopStatus Whether the conversation is STOPPED
+ * @param options.curAgentState The current agent state
+ * @param options.errorMessage Optional agent error message
+ * @returns Localized human-readable status text
+ *
+ * @example
+ * getStatusText({
+ *   isPausing: false,
+ *   isTask: true,
+ *   taskStatus: "WAITING_FOR_SANDBOX",
+ *   taskDetail: null,
+ *   isStartingStatus: false,
+ *   isStopStatus: false,
+ *   curAgentState: AgentState.RUNNING
+ * }) // Returns "Waiting For Sandbox"
+ */
+export function getStatusText({
+  isPausing = false,
+  isTask,
+  taskStatus,
+  taskDetail,
+  isStartingStatus,
+  isStopStatus,
+  curAgentState,
+  errorMessage,
+  t,
+}: GetStatusTextArgs): string {
+  // Show pausing status
+  if (isPausing) {
+    return t(I18nKey.COMMON$STOPPING);
+  }
+
+  // Show task status if we're polling a task
+  if (isTask && taskStatus) {
+    if (taskStatus === "ERROR") {
+      return taskDetail || t(I18nKey.CONVERSATION$ERROR_STARTING_CONVERSATION);
+    }
+
+    if (taskStatus === "READY") {
+      return t(I18nKey.CONVERSATION$READY);
+    }
+
+    // Format status text: "WAITING_FOR_SANDBOX" -> "Waiting for sandbox"
+    return (
+      taskDetail ||
+      taskStatus
+        .toLowerCase()
+        .replace(/_/g, " ")
+        .replace(/\b\w/g, (c) => c.toUpperCase())
+    );
+  }
+
+  if (isStartingStatus) {
+    return t(I18nKey.COMMON$STARTING);
+  }
+
+  if (isStopStatus) {
+    return t(I18nKey.COMMON$SERVER_STOPPED);
+  }
+
+  if (curAgentState === AgentState.ERROR) {
+    return errorMessage || t(I18nKey.COMMON$ERROR);
+  }
+
+  return t(I18nKey.COMMON$RUNNING);
+}