diff --git a/package.json b/package.json
index 579e41e..838e516 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
 	"name": "pi-code-planner",
-	"version": "0.11.0",
+	"version": "0.10.0",
 	"description": "Structured planning, TDD, and Git worktrees for Pi local coding agents",
 	"keywords": [
 		"pi-package",
diff --git a/src/index.ts b/src/index.ts
index e24fba8..e94628b 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -85,6 +85,7 @@ import {
 	type PlannerContextBudgetDecision,
 	projectPlannerContextBudget,
 	shouldCancelOverlappingCompaction,
+	shouldClearStaleCompactIndicator,
 	shouldProactivelyCompact,
 } from "./runtime/compact";
 import {
@@ -101,6 +102,7 @@ import {
 	type PlannerContractToolName,
 } from "./runtime/contracts";
 import {
+	isWorkspaceCompactIndicatorActive,
 	openPlannerWorkspace,
 	registerPlannerDashboard,
 	setWorkspaceCompactIndicator,
@@ -3571,7 +3573,18 @@ function registerPlannerCompactEvents(
 	// safety cap. This can never clear a live compaction: summarization blocks the
 	// agent loop, so no turn can start while it is running.
 	const clearStaleCompactIndicator = (ctx: ExtensionContext) => {
-		if (!compactTimer) return;
+		// The banner (dashboard-mirrored, module-level) can outlive this closure's
+		// interval — e.g. a re-registration on /reload leaves a fresh timer at null
+		// while the "Compacting… 95%" line still shows over the resumed model. Clear
+		// on either signal so the stale banner never lingers past the resume.
+		if (
+			!shouldClearStaleCompactIndicator({
+				timerLive: compactTimer !== null,
+				bannerVisible: isWorkspaceCompactIndicatorActive(),
+			})
+		) {
+			return;
+		}
 		pendingCompact = null;
 		stopCompactIndicator(ctx);
 	};
diff --git a/src/runtime/compact.test.ts b/src/runtime/compact.test.ts
index 257e7c1..68076f4 100644
--- a/src/runtime/compact.test.ts
+++ b/src/runtime/compact.test.ts
@@ -40,6 +40,7 @@ import {
 	PLANNER_SYSTEM_INSTRUCTIONS_HEADER,
 	projectPlannerContextBudget,
 	shouldCancelOverlappingCompaction,
+	shouldClearStaleCompactIndicator,
 	shouldProactivelyCompact,
 } from "./compact";
 import type { PlannerPreflightResult } from "./preflight";
@@ -331,6 +332,38 @@ describe("planner compact runtime", () => {
 		});
 	});
 
+	describe("shouldClearStaleCompactIndicator", () => {
+		it("clears while the interval is still live", () => {
+			expect(
+				shouldClearStaleCompactIndicator({
+					timerLive: true,
+					bannerVisible: false,
+				}),
+			).toBe(true);
+		});
+
+		it("clears a banner that outlived its timer (the /reload-decoupled case)", () => {
+			// The regression: the closure interval was torn down (or re-created at
+			// null) while the module-level banner line still showed over the resumed
+			// model. Consulting the banner catches it.
+			expect(
+				shouldClearStaleCompactIndicator({
+					timerLive: false,
+					bannerVisible: true,
+				}),
+			).toBe(true);
+		});
+
+		it("does nothing when neither the timer nor the banner is up", () => {
+			expect(
+				shouldClearStaleCompactIndicator({
+					timerLive: false,
+					bannerVisible: false,
+				}),
+			).toBe(false);
+		});
+	});
+
 	describe("estimatePlannerInstructionTokens", () => {
 		it("mirrors Pi's conservative chars/4 heuristic", () => {
 			expect(estimatePlannerInstructionTokens("")).toBe(0);
diff --git a/src/runtime/compact.ts b/src/runtime/compact.ts
index 9a497b4..22c56b8 100644
--- a/src/runtime/compact.ts
+++ b/src/runtime/compact.ts
@@ -136,6 +136,27 @@ export function clearPlannerCompactionInFlight(
 	state.compactionInFlight = false;
 }
 
+/**
+ * Decide whether a resume signal (`agent_start` / `turn_start` / `message_start`)
+ * should tear down the compaction indicator. Summarization blocks the agent loop,
+ * so the loop only runs *between* compactions — any resume signal therefore means
+ * the compaction is over and an indicator still up is stale.
+ *
+ * We clear when EITHER our per-registration interval is live OR the shared,
+ * dashboard-mirrored banner line is still showing. Gating on the timer alone
+ * missed the case where the timer was already torn down (or re-created on
+ * `/reload`) without clearing the module-level banner: the interval was gone yet
+ * the "Compacting… 95%" line lingered over the resumed model. Consulting the
+ * banner line closes that gap for both the plain-chat widget and the
+ * /planner-dashboard mirror.
+ */
+export function shouldClearStaleCompactIndicator(input: {
+	timerLive: boolean;
+	bannerVisible: boolean;
+}): boolean {
+	return input.timerLive || input.bannerVisible;
+}
+
 export function markPlannerControlledCompactStarted(
 	state: PlannerCompactRuntimeState,
 ): void {
diff --git a/src/runtime/dashboard.test.ts b/src/runtime/dashboard.test.ts
index 3174c99..77b3fd6 100644
--- a/src/runtime/dashboard.test.ts
+++ b/src/runtime/dashboard.test.ts
@@ -1,6 +1,7 @@
 import { visibleWidth } from "@earendil-works/pi-tui";
 import { describe, expect, it } from "vitest";
 import {
+	isWorkspaceCompactIndicatorActive,
 	PlannerWorkspaceComponent,
 	setWorkspaceCompactIndicator,
 } from "./dashboard";
@@ -232,4 +233,18 @@ describe("PlannerWorkspaceComponent rendering", () => {
 			setWorkspaceCompactIndicator(null);
 		}
 	});
+
+	it("reports whether a compact banner is currently up", () => {
+		// The resume hooks in index.ts read this durable, module-level flag to clear
+		// a banner that outlived its per-registration timer.
+		try {
+			expect(isWorkspaceCompactIndicatorActive()).toBe(false);
+			setWorkspaceCompactIndicator("Compacting 68k tok (threshold) ▓▓░░ 40%");
+			expect(isWorkspaceCompactIndicatorActive()).toBe(true);
+			setWorkspaceCompactIndicator(null);
+			expect(isWorkspaceCompactIndicatorActive()).toBe(false);
+		} finally {
+			setWorkspaceCompactIndicator(null);
+		}
+	});
 });
diff --git a/src/runtime/dashboard.ts b/src/runtime/dashboard.ts
index 730ebd8..d273566 100644
--- a/src/runtime/dashboard.ts
+++ b/src/runtime/dashboard.ts
@@ -112,6 +112,17 @@ export function setWorkspaceCompactIndicator(line: string | null): void {
 	compactIndicatorListener?.();
 }
 
+/**
+ * True while a compaction banner is currently showing anywhere. This is the one
+ * durable, module-level record of "an indicator is up" — the per-registration
+ * closure timer in index.ts can be torn down (or re-created on /reload) without
+ * clearing this line, so the resume hooks consult it to catch a banner that
+ * outlived its timer instead of gating solely on the timer.
+ */
+export function isWorkspaceCompactIndicatorActive(): boolean {
+	return compactIndicatorLine !== null;
+}
+
 export function registerPlannerDashboard(pi: ExtensionAPI): void {
 	pi.registerCommand("planner-dashboard", {
 		description: