diff --git a/codex-rs/tui/src/chatwidget.rs b/codex-rs/tui/src/chatwidget.rs
index c8f221de6..1302b2343 100644
--- a/codex-rs/tui/src/chatwidget.rs
+++ b/codex-rs/tui/src/chatwidget.rs
@@ -377,6 +377,14 @@ impl ChatWidget {
         self.bottom_pane.update_status_header(header);
     }
 
+    fn restore_retry_status_header_if_present(&mut self) {
+        if let Some(header) = self.retry_status_header.take()
+            && self.current_status_header != header
+        {
+            self.set_status_header(header);
+        }
+    }
+
     // --- Small event handlers ---
     fn on_session_configured(&mut self, event: codex_core::protocol::SessionConfiguredEvent) {
         self.bottom_pane
@@ -1771,6 +1779,11 @@ impl ChatWidget {
     /// `replay_initial_messages()`. Callers should treat `None` as a "fake" id
     /// that must not be used to correlate follow-up actions.
     fn dispatch_event_msg(&mut self, id: Option<String>, msg: EventMsg, from_replay: bool) {
+        let is_stream_error = matches!(&msg, EventMsg::StreamError(_));
+        if !is_stream_error {
+            self.restore_retry_status_header_if_present();
+        }
+
         match msg {
             EventMsg::AgentMessageDelta(_)
             | EventMsg::AgentReasoningDelta(_)
diff --git a/codex-rs/tui/src/chatwidget/tests.rs b/codex-rs/tui/src/chatwidget/tests.rs
index 5159d12ce..126c91f9d 100644
--- a/codex-rs/tui/src/chatwidget/tests.rs
+++ b/codex-rs/tui/src/chatwidget/tests.rs
@@ -2905,6 +2905,39 @@ fn warning_event_adds_warning_history_cell() {
     );
 }
 
+#[test]
+fn stream_recovery_restores_previous_status_header() {
+    let (mut chat, mut rx, _op_rx) = make_chatwidget_manual();
+    chat.handle_codex_event(Event {
+        id: "task".into(),
+        msg: EventMsg::TaskStarted(TaskStartedEvent {
+            model_context_window: None,
+        }),
+    });
+    drain_insert_history(&mut rx);
+    chat.handle_codex_event(Event {
+        id: "retry".into(),
+        msg: EventMsg::StreamError(StreamErrorEvent {
+            message: "Reconnecting... 1/5".to_string(),
+            codex_error_info: Some(CodexErrorInfo::Other),
+        }),
+    });
+    drain_insert_history(&mut rx);
+    chat.handle_codex_event(Event {
+        id: "delta".into(),
+        msg: EventMsg::AgentMessageDelta(AgentMessageDeltaEvent {
+            delta: "hello".to_string(),
+        }),
+    });
+
+    let status = chat
+        .bottom_pane
+        .status_widget()
+        .expect("status indicator should be visible");
+    assert_eq!(status.header(), "Working");
+    assert!(chat.retry_status_header.is_none());
+}
+
 #[test]
 fn multiple_agent_messages_in_single_turn_emit_multiple_headers() {
     let (mut chat, mut rx, _op_rx) = make_chatwidget_manual();