diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index d9d9cc3c9..0ca555e84 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -13,6 +13,8 @@
 ### Fixed
 
 - Fixed configured `retry.fallbackChains` never engaging on non-retryable provider errors (e.g. "Cloud Code Assist API returned an empty response"): a hard error on a model covered by a fallback chain now switches to the next candidate instead of failing the turn, while still never backoff-retrying the failing model itself
+- Fixed the post-compaction transcript rebuild (auto-compaction and `/compact`) repainting the entire collapsed transcript — welcome banner included — below the stale pre-compaction scrollback: the rebuild collapses history behind the summary divider, shrinking the frame far below the committed row count, and the renderer's "duplication, never loss" resync re-showed everything without retracting native scrollback; both rebuild paths now request `clearScrollback` like auto-handoff already did
+- Fixed mid-run auto-compaction spuriously warning "Compaction freed too little context to make progress" and pausing maintenance even when compaction genuinely shrank the context (observed: snapcompact took a 312k-token gpt-5.6 session to 86k real tokens and still dead-ended): the in-flight prompt's pending context snapshot — set once at run start and alive for the whole tool loop — was read as live residual context by the post-compaction headroom/retry-fit checks because the fresh compaction entry hides every earlier usage anchor; compaction (auto and `/compact`), the retry drop, and the dead-end shake rescue now rebase the snapshot onto the rewritten message set
 - Fixed backgrounded Bash blocks continuing to repaint with live and final job output; they now freeze with a compact job notice while completion is delivered separately
 
 ### Removed
diff --git a/packages/coding-agent/src/session/agent-session.ts b/packages/coding-agent/src/session/agent-session.ts
index a58edff03..389bfcc04 100644
--- a/packages/coding-agent/src/session/agent-session.ts
+++ b/packages/coding-agent/src/session/agent-session.ts
@@ -10115,6 +10115,7 @@ export class AgentSession {
 			const newEntries = this.sessionManager.getEntries();
 			const sessionContext = this.buildDisplaySessionContext();
 			this.agent.replaceMessages(sessionContext.messages);
+			this.#rebasePendingContextSnapshotAfterCompaction();
 			// Compaction discarded the conversation history that carried the approved
 			// plan reference. Clear the sent-flag so #buildPlanReferenceMessage re-reads
 			// the plan from disk and re-injects it on the next turn (issue #1246).
@@ -12534,7 +12535,11 @@ export class AgentSession {
 		if (signal.aborted) return undefined;
 		try {
 			const result = await this.shake("elide", { signal });
-			return result.toolResultsDropped + result.blocksDropped > 0 ? result : undefined;
+			if (result.toolResultsDropped + result.blocksDropped === 0) return undefined;
+			// The elide pass rewrote history; re-anchor the in-flight snapshot so
+			// the caller's headroom/retry-fit re-test measures the shaken context.
+			this.#rebasePendingContextSnapshotAfterCompaction();
+			return result;
 		} catch (error) {
 			logger.warn("Dead-end shake rescue failed", {
 				error: error instanceof Error ? error.message : String(error),
@@ -13059,6 +13064,7 @@ export class AgentSession {
 			const newEntries = this.sessionManager.getEntries();
 			const sessionContext = this.buildDisplaySessionContext();
 			this.agent.replaceMessages(sessionContext.messages);
+			this.#rebasePendingContextSnapshotAfterCompaction();
 			// Compaction discarded the conversation history that carried the approved
 			// plan reference. Clear the sent-flag so #buildPlanReferenceMessage re-reads
 			// the plan from disk and re-injects it on the next turn (issue #1246).
@@ -13124,6 +13130,7 @@ export class AgentSession {
 						(reason === "incomplete" && lastAssistant.stopReason === "length");
 					if (shouldDrop) {
 						this.agent.replaceMessages(messages.slice(0, -1));
+						this.#rebasePendingContextSnapshotAfterCompaction();
 					}
 				}
 
@@ -15941,6 +15948,28 @@ export class AgentSession {
 		this.#contextUsageRevision++;
 	}
 
+	/**
+	 * Rebase the in-flight pending context snapshot onto the current message
+	 * set after a compaction (or its dead-end rescue) rewrote history mid-run.
+	 * The snapshot captures the prompt as submitted at run start and lives for
+	 * the whole run; once a compaction entry lands, every earlier usage anchor
+	 * is hidden from {@link getContextBreakdown}, so the stale run-start figure
+	 * would be reported as live context until the next provider response. That
+	 * inflated residual is what the post-compaction headroom/retry-fit checks
+	 * measure — a run that started above the recovery band then trips the
+	 * "freed too little context" dead-end even when compaction genuinely
+	 * shrank the context. No-op while no prompt is in flight.
+	 */
+	#rebasePendingContextSnapshotAfterCompaction(): void {
+		if (!this.#pendingContextSnapshot) return;
+		const nonMessageTokens = computeNonMessageTokens(this);
+		this.#setPendingContextSnapshot({
+			promptTokens: nonMessageTokens + this.messages.reduce((sum, msg) => sum + estimateTokens(msg), 0),
+			nonMessageTokens,
+			cutoffCount: this.messages.length,
+		});
+	}
+
 	#ingestProviderUsageHeaders(response: ProviderResponseMetadata, model?: Model): void {
 		if (model?.provider !== "anthropic") return;
 		this.#modelRegistry.authStorage.ingestUsageHeaders("anthropic", response.headers, {
diff --git a/packages/coding-agent/test/agent-session-auto-compaction-progress-guard.test.ts b/packages/coding-agent/test/agent-session-auto-compaction-progress-guard.test.ts
index e537902df..f90ced886 100644
--- a/packages/coding-agent/test/agent-session-auto-compaction-progress-guard.test.ts
+++ b/packages/coding-agent/test/agent-session-auto-compaction-progress-guard.test.ts
@@ -416,6 +416,75 @@ describe("AgentSession auto-compaction progress guard", () => {
 		const noProgress = notices.filter(n => n.source === NOTICE_SOURCE && n.message.includes(NO_PROGRESS_FRAGMENT));
 		expect(noProgress.length).toBe(0);
 	});
+
+	it("rebases the in-flight prompt snapshot so mid-run compaction is not misread as a dead-end", async () => {
+		// Regression: the pending context snapshot is set once per prompt and
+		// lives for the whole run. A fresh compaction entry hides every earlier
+		// usage anchor from getContextBreakdown, which then fell back to the
+		// stale run-start figure until the next provider response — a run
+		// submitted above the recovery band (0.8 × 170k = 136k here) tripped the
+		// "freed too little context" warning even though compaction had
+		// genuinely shrunk the context (observed live: 312k → 86k real tokens,
+		// warning still emitted).
+		const continueSpy = vi.spyOn(session.agent, "continue").mockResolvedValue();
+		// Hold the initial prompt in flight so the pending snapshot stays alive
+		// through the compaction, exactly like a live tool-loop run. The second
+		// agent.prompt call is the scheduled auto-continue — the "headroom was
+		// seen" signal the test awaits.
+		const gate = Promise.withResolvers<void>();
+		const firstPromptCall = Promise.withResolvers<void>();
+		const secondPromptCall = Promise.withResolvers<void>();
+		let promptCalls = 0;
+		const promptSpy = vi.spyOn(session.agent, "prompt").mockImplementation(() => {
+			promptCalls++;
+			if (promptCalls === 1) firstPromptCall.resolve();
+			if (promptCalls === 2) secondPromptCall.resolve();
+			return gate.promise as never;
+		});
+
+		const notices = collectNotices();
+		// The dead-end warning is the "no headroom was seen" signal: the headroom
+		// tail runs AFTER auto_compaction_end is emitted, so the test awaits one
+		// of the tail's two observable outcomes instead of the end event.
+		const noProgressSeen = Promise.withResolvers<void>();
+		session.subscribe(event => {
+			if (event.type === "notice" && event.message.includes(NO_PROGRESS_FRAGMENT)) noProgressSeen.resolve();
+		});
+
+		// ~150k-token prompt: above the recovery band, below the 170k threshold,
+		// so the pre-prompt maintenance pass stays quiet and the snapshot records
+		// the run-start size. agent.prompt is mocked, so the text never reaches
+		// the branch — it exists only in the in-flight snapshot.
+		const inFlightPrompt = session.prompt("x".repeat(600_000));
+		// The snapshot is written immediately before agent.prompt; awaiting the
+		// first (gated) call guarantees it is in place before the threshold turn
+		// lands — emitting earlier would race the submission pipeline and let
+		// compaction run against an unset snapshot.
+		await firstPromptCall.promise;
+
+		// Mid-run, the billed context crosses the threshold and compaction fires;
+		// the rewritten context (summary only) is tiny.
+		const assistantMsg = highUsageAssistant();
+		session.agent.emitExternalEvent({ type: "message_end", message: assistantMsg });
+		session.agent.emitExternalEvent({ type: "agent_end", messages: [assistantMsg] });
+		// Wait for the headroom verdict while the prompt is still gated —
+		// releasing the gate earlier would clear the snapshot and mask the
+		// regression. Fixed behavior schedules the auto-continue (second prompt
+		// call); the regression emits the dead-end warning instead.
+		await Promise.race([secondPromptCall.promise, noProgressSeen.promise]);
+
+		gate.resolve();
+		await inFlightPrompt;
+		await session.waitForIdle();
+
+		// The stale 150k run-start snapshot must not be measured as residual
+		// context: no dead-end warning, and the auto-continue prompt ran
+		// (initial call + continuation).
+		expect(promptSpy).toHaveBeenCalledTimes(2);
+		expect(continueSpy).not.toHaveBeenCalled();
+		const noProgress = notices.filter(n => n.source === NOTICE_SOURCE && n.message.includes(NO_PROGRESS_FRAGMENT));
+		expect(noProgress.length).toBe(0);
+	});
 	/**
 	 * Seed several large prior turns into the session branch so `prepareCompaction`
 	 * returns a real preparation after the overflow recovery drops the failed