diff --git a/src/cli/commands/chat.tsx b/src/cli/commands/chat.tsx
index 06119fb..cb1279e 100644
--- a/src/cli/commands/chat.tsx
+++ b/src/cli/commands/chat.tsx
@@ -20,7 +20,7 @@ import {TextInput} from '../../ui/components/TextInput.js';
 import {theme} from '../../ui/theme.js';
 import {handleSlashCommand, type CommandContext} from './commands.js';
 import {runAgentTurn, type Message, type TokenUsage} from './streaming.js';
-import {formatContextReport} from './formatters.js';
+import {formatContextReport, formatElapsedTimeWhole} from './formatters.js';
 import {type LlmLog, createLog as createLlmLog, endLog as endLlmLog} from '../../core/log/llmLog.js';
 import {loadSkillRegistry} from '../../skills/SkillRegistry.js';
 import {createSkill, toSkillDirName} from '../../skills/builder/SkillBuilder.js';
@@ -71,6 +71,13 @@ async function currentBranchName() {
   }
 }
 
+/** Elapsed-time label for the busy indicator heartbeat, or '' when no turn is active. */
+function busyElapsedLabel(startedAt: number | undefined) {
+  if (startedAt == null) return '';
+  const elapsed = Date.now() - startedAt;
+  return elapsed > 0 ? formatElapsedTimeWhole(elapsed) : '';
+}
+
 function ChatScreen({debug = false, version, continueSession = false, noSession = false}: ChatOptions) {
   const {exit} = useApp();
   const {stdout} = useStdout();
@@ -113,6 +120,11 @@ function ChatScreen({debug = false, version, continueSession = false, noSession
   const [busy, setBusy] = useState(false);
   const [busyLabel, setBusyLabel] = useState('Haze is thinking');
   const [, setActiveGoalStatus] = useState<string | undefined>();
+  // Heartbeat for the busy indicator: ticks every second while Haze is working
+  // so the developer always sees rolling activity (elapsed turn time) even when
+  // the model is thinking with no streamed output and no tool is running.
+  const turnStartedAtRef = useRef<number | undefined>(undefined);
+  const [, setBusyTick] = useState(0);
   const [visibleTasks, setVisibleTasks] = useState<Task[]>([]);
   const [tasksExpanded, setTasksExpanded] = useState(false);
   const [taskBarPadding, setTaskBarPadding] = useState(0);
@@ -131,6 +143,21 @@ function ChatScreen({debug = false, version, continueSession = false, noSession
   const [selectedMcpName, setSelectedMcpName] = useState<string | undefined>();
   const [mcpDraft, setMcpDraft] = useState<Partial<HazeMcpServer>>({});
 
+  // Wrap setBusy so the busy indicator knows when the turn started, and tick a
+  // heartbeat every second while busy so elapsed time keeps rolling. This keeps
+  // the UI visibly alive during long model thinking / blocked tool runs where
+  // otherwise no streamed output is produced (the "looks stuck" problem).
+  const setBusyWithHeartbeat = (nextBusy: boolean) => {
+    if (nextBusy && !busy) turnStartedAtRef.current = Date.now();
+    if (!nextBusy) turnStartedAtRef.current = undefined;
+    setBusy(nextBusy);
+  };
+  useEffect(() => {
+    if (!busy) return;
+    const heartbeat = setInterval(() => setBusyTick(tick => tick + 1), 1000);
+    return () => clearInterval(heartbeat);
+  }, [busy]);
+
   useEffect(() => {
     Promise.all([
       readSettings().catch(() => ({} as HazeSettings)),
@@ -339,7 +366,7 @@ function ChatScreen({debug = false, version, continueSession = false, noSession
       setQueuedFollowUps([]);
       setMessages(m => [...m, {role: 'system', text: 'Cleared queued follow-ups after interrupt.'}]);
     }
-    setBusy(false);
+    setBusyWithHeartbeat(false);
   }
 
   function queueFollowUp(value: string) {
@@ -650,7 +677,7 @@ function ChatScreen({debug = false, version, continueSession = false, noSession
       const name = result.draftName;
       const description = result.description;
       setBusyLabel(result.busyLabel ?? 'Creating skill');
-      setBusy(true);
+      setBusyWithHeartbeat(true);
       try {
         const created = await createSkill({name, description});
         setMessages(m => [...m, {role: 'system', text: skillCreationMessage(created.name, created.file)}]);
@@ -658,7 +685,7 @@ function ChatScreen({debug = false, version, continueSession = false, noSession
       } catch (error) {
         setMessages(m => [...m, {role: 'system', text: skillCreationFailure(error)}]);
       } finally {
-        setBusy(false);
+        setBusyWithHeartbeat(false);
         setBusyLabel('Haze is thinking');
       }
     }
@@ -1063,7 +1090,7 @@ function ChatScreen({debug = false, version, continueSession = false, noSession
         conversationRef.current = msgs;
         sessionRecorder.recordConversation(msgs);
       },
-      setBusy,
+      setBusy: setBusyWithHeartbeat,
       setBusyLabel,
       debugLog,
       getConversation: () => conversationRef.current,
@@ -1148,7 +1175,7 @@ function ChatScreen({debug = false, version, continueSession = false, noSession
       <TaskBar tasks={visibleTasks} width={width} expanded={tasksExpanded} padding={taskBarPadding} />
     </Box>}
     {busy && <Box flexShrink={0}>
-      <Text><Text color={theme.orange} bold><Spinner type="dots" /> {busyLabel}</Text><Text color={theme.muted} dimColor> · type to queue follow-up · esc to interrupt</Text></Text>
+      <Text><Text color={theme.orange} bold><Spinner type="dots" /> {busyLabel}{busyElapsedLabel(turnStartedAtRef.current) ? <Text color={theme.muted} dimColor> · {busyElapsedLabel(turnStartedAtRef.current)}</Text> : null}</Text><Text color={theme.muted} dimColor> · type to queue follow-up · esc to interrupt</Text></Text>
     </Box>}
     <Box borderStyle="round" borderColor={theme.deepPurple} paddingX={1} flexShrink={0}>
       <Box flexGrow={1} minWidth={0}>
diff --git a/src/cli/commands/formatters.ts b/src/cli/commands/formatters.ts
index 59ff7ee..0cc9aa0 100644
--- a/src/cli/commands/formatters.ts
+++ b/src/cli/commands/formatters.ts
@@ -102,6 +102,42 @@ export function toolResultSummary(event: {success: boolean; output?: unknown; er
   return 'completed';
 }
 
+/**
+ * A short, human label for the live busy indicator while a tool is running,
+ * e.g. "Running command", "Reading src/foo.ts", "Searching".
+ * Lets the developer see *what* is happening, not just that something is.
+ */
+export function busyToolLabel(toolName: string, input: unknown) {
+  const data = input as Record<string, unknown>;
+  switch (toolName) {
+    case 'bash':
+      return 'Running command';
+    case 'grep':
+      return 'Searching';
+    case 'listFiles':
+      return 'Listing files';
+    case 'readFile':
+      return typeof data?.path === 'string' ? `Reading ${data.path}` : 'Reading file';
+    case 'writeFile':
+      return typeof data?.path === 'string' ? `Writing ${data.path}` : 'Writing file';
+    case 'editFile':
+    case 'replaceLines':
+      return typeof data?.path === 'string' ? `Editing ${data.path}` : 'Editing file';
+    case 'fetch':
+      return 'Fetching URL';
+    case 'subagent':
+      return 'Running subagent';
+    case 'writeTasks':
+      return 'Updating tasks';
+    case 'skill':
+      return 'Loading skill';
+    default:
+      if (toolName.startsWith('lsp')) return 'Querying LSP';
+      if (toolName.startsWith('mcp')) return 'Running MCP tool';
+      return `Running ${toolName}`;
+  }
+}
+
 export function formatSeconds(milliseconds: number) {
   return `${(milliseconds / 1000).toFixed(1)}s`;
 }
diff --git a/src/cli/commands/streaming.ts b/src/cli/commands/streaming.ts
index 7506b77..326b507 100644
--- a/src/cli/commands/streaming.ts
+++ b/src/cli/commands/streaming.ts
@@ -6,7 +6,7 @@ import {assembleRequestContext} from '../../llm/requestContext.js';
 import {projectContextSection, type PromptSession} from '../../llm/systemPrompt.js';
 import {closeMcpClients, type LoadedMcpTools} from '../../llm/mcp.js';
 import type {ContextFile} from '../../config/contextFiles.js';
-import {toolCallSummary, toolResultSummary, formatSeconds} from './formatters.js';
+import {toolCallSummary, toolResultSummary, busyToolLabel, formatSeconds} from './formatters.js';
 import {agentEvent, type AgentEventSink} from '../../core/agent/events.js';
 import {isContextOverflowError, isRetryableModelError} from '../../core/agent/errors.js';
 import {isPlanOnlyRequest} from '../../core/goal/requestClassifier.js';
@@ -254,6 +254,7 @@ export async function runAgentTurn(
       resetIdleTimer();
       switch (part.type) {
         case 'text-delta': {
+          callbacks.setBusyLabel?.('Haze is thinking');
           toolDisplay.startFreshToolGroup();
           const delta = sanitizeAssistantText(part.text);
           assistantText += delta;
@@ -280,6 +281,7 @@ export async function runAgentTurn(
           const toolCall = {toolCallId: part.id, toolName: part.toolName, input: {}};
           latestToolCalls.set(part.id, toolCall);
           startedTools.set(part.id, Date.now());
+          callbacks.setBusyLabel?.(busyToolLabel(part.toolName, {}));
           toolDisplay.ensureToolItem(toolCall);
           break;
         }
@@ -292,6 +294,7 @@ export async function runAgentTurn(
           const toolCall = {toolCallId: part.toolCallId, toolName: part.toolName, input: part.input};
           latestToolCalls.set(part.toolCallId, toolCall);
           if (!startedTools.has(part.toolCallId)) startedTools.set(part.toolCallId, Date.now());
+          callbacks.setBusyLabel?.(busyToolLabel(part.toolName, part.input));
           toolDisplay.ensureToolItem(toolCall).summary = toolCallSummary(part.toolName, part.input);
           toolDisplay.updateToolGroup(true);
           break;
diff --git a/tests/cli/formatters.test.ts b/tests/cli/formatters.test.ts
index 49f4984..3b33b43 100644
--- a/tests/cli/formatters.test.ts
+++ b/tests/cli/formatters.test.ts
@@ -1,5 +1,5 @@
 import {describe, it, expect} from 'vitest';
-import {compact, toolCallSummary, toolResultSummary, formatSeconds, formatElapsedTime, formatElapsedTimeWhole, formatContextReport, type ContextReportData} from '../../src/cli/commands/formatters.js';
+import {compact, toolCallSummary, toolResultSummary, busyToolLabel, formatSeconds, formatElapsedTime, formatElapsedTimeWhole, formatContextReport, type ContextReportData} from '../../src/cli/commands/formatters.js';
 
 describe('compact', () => {
   it('returns short strings unchanged', () => {
@@ -87,6 +87,44 @@ describe('toolCallSummary', () => {
   });
 });
 
+describe('busyToolLabel', () => {
+  it('labels bash as running a command', () => {
+    expect(busyToolLabel('bash', {command: 'npm test'})).toBe('Running command');
+  });
+
+  it('labels readFile with its path', () => {
+    expect(busyToolLabel('readFile', {path: 'src/index.ts'})).toBe('Reading src/index.ts');
+  });
+
+  it('labels readFile without input generically', () => {
+    expect(busyToolLabel('readFile', {})).toBe('Reading file');
+  });
+
+  it('labels editFile and replaceLines as editing', () => {
+    expect(busyToolLabel('editFile', {path: 'a.ts'})).toBe('Editing a.ts');
+    expect(busyToolLabel('replaceLines', {path: 'b.ts'})).toBe('Editing b.ts');
+  });
+
+  it('labels grep and listFiles', () => {
+    expect(busyToolLabel('grep', {pattern: 'x'})).toBe('Searching');
+    expect(busyToolLabel('listFiles', {path: '.'})).toBe('Listing files');
+  });
+
+  it('labels fetch and subagent', () => {
+    expect(busyToolLabel('fetch', {url: 'https://example.com'})).toBe('Fetching URL');
+    expect(busyToolLabel('subagent', {task: 'x'})).toBe('Running subagent');
+  });
+
+  it('falls back to Running <name> for unknown tools', () => {
+    expect(busyToolLabel('customTool', {data: 1})).toBe('Running customTool');
+  });
+
+  it('labels LSP- and MCP-prefixed tools generically', () => {
+    expect(busyToolLabel('lspSymbols', {path: 'a.ts'})).toBe('Querying LSP');
+    expect(busyToolLabel('mcp_search', {})).toBe('Running MCP tool');
+  });
+});
+
 describe('toolResultSummary', () => {
   it('reports failure', () => {
     expect(toolResultSummary({success: false, error: 'bad'})).toBe('failed: bad');