diff --git a/src/stores/chat.ts b/src/stores/chat.ts
index aecb6fefa..691c398eb 100644
--- a/src/stores/chat.ts
+++ b/src/stores/chat.ts
@@ -120,6 +120,18 @@ function toMs(ts: number): number {
 // poll chat.history to surface intermediate tool-call turns.
 let _historyPollTimer: ReturnType<typeof setTimeout> | null = null;
 
+// Timer for delayed error finalization. When the Gateway reports a mid-stream
+// error (e.g. "terminated"), it may retry internally and recover. We wait
+// before committing the error to give the recovery path a chance.
+let _errorRecoveryTimer: ReturnType<typeof setTimeout> | null = null;
+
+function clearErrorRecoveryTimer(): void {
+  if (_errorRecoveryTimer) {
+    clearTimeout(_errorRecoveryTimer);
+    _errorRecoveryTimer = null;
+  }
+}
+
 function clearHistoryPoll(): void {
   if (_historyPollTimer) {
     clearTimeout(_historyPollTimer);
@@ -1137,6 +1149,7 @@ export const useChatStore = create<ChatState>((set, get) => ({
     // entire agentic conversation finishes — the poll must run in parallel.
     _lastChatEventAt = Date.now();
     clearHistoryPoll();
+    clearErrorRecoveryTimer();
 
     const POLL_START_DELAY = 3_000;
     const POLL_INTERVAL = 4_000;
@@ -1245,6 +1258,7 @@ export const useChatStore = create<ChatState>((set, get) => ({
 
   abortRun: async () => {
     clearHistoryPoll();
+    clearErrorRecoveryTimer();
     const { currentSessionKey } = get();
     set({ sending: false, streamingText: '', streamingMessage: null, pendingFinal: false, lastUserMessageAt: null, pendingToolImages: [] });
     set({ streamingTools: [] });
@@ -1296,7 +1310,13 @@ export const useChatStore = create<ChatState>((set, get) => ({
 
     switch (resolvedState) {
       case 'delta': {
-        // Streaming update - store the cumulative message
+        // If we're receiving new deltas, the Gateway has recovered from any
+        // prior error — cancel the error finalization timer and clear the
+        // stale error banner so the user sees the live stream again.
+        if (_errorRecoveryTimer) {
+          clearErrorRecoveryTimer();
+          set({ error: null });
+        }
         const updates = collectToolUpdates(event.message, resolvedState);
         set((s) => ({
           streamingMessage: (() => {
@@ -1311,6 +1331,8 @@ export const useChatStore = create<ChatState>((set, get) => ({
         break;
       }
       case 'final': {
+        clearErrorRecoveryTimer();
+        if (get().error) set({ error: null });
         // Message complete - add to history and clear streaming
         const finalMsg = event.message as RawMessage | undefined;
         if (finalMsg) {
@@ -1449,23 +1471,65 @@ export const useChatStore = create<ChatState>((set, get) => ({
         break;
       }
       case 'error': {
-        clearHistoryPoll();
         const errorMsg = String(event.errorMessage || 'An error occurred');
+        const wasSending = get().sending;
+
+        // Snapshot the current streaming message into messages[] so partial
+        // content ("Let me get that written down...") is preserved in the UI
+        // rather than being silently discarded.
+        const currentStream = get().streamingMessage as RawMessage | null;
+        if (currentStream && (currentStream.role === 'assistant' || currentStream.role === undefined)) {
+          const snapId = (currentStream as RawMessage).id
+            || `error-snap-${Date.now()}`;
+          const alreadyExists = get().messages.some(m => m.id === snapId);
+          if (!alreadyExists) {
+            set((s) => ({
+              messages: [...s.messages, { ...currentStream, role: 'assistant' as const, id: snapId }],
+            }));
+          }
+        }
+
         set({
           error: errorMsg,
-          sending: false,
-          activeRunId: null,
           streamingText: '',
           streamingMessage: null,
           streamingTools: [],
           pendingFinal: false,
-          lastUserMessageAt: null,
           pendingToolImages: [],
         });
+
+        // Don't immediately give up: the Gateway often retries internally
+        // after transient API failures (e.g. "terminated"). Keep `sending`
+        // true for a grace period so that recovery events are processed and
+        // the agent-phase-completion handler can still trigger loadHistory.
+        if (wasSending) {
+          clearErrorRecoveryTimer();
+          const ERROR_RECOVERY_GRACE_MS = 15_000;
+          _errorRecoveryTimer = setTimeout(() => {
+            _errorRecoveryTimer = null;
+            const state = get();
+            if (state.sending && !state.streamingMessage) {
+              clearHistoryPoll();
+              // Grace period expired with no recovery — finalize the error
+              set({
+                sending: false,
+                activeRunId: null,
+                lastUserMessageAt: null,
+              });
+              // One final history reload in case the Gateway completed in the
+              // background and we just missed the event.
+              state.loadHistory(true);
+            }
+          }, ERROR_RECOVERY_GRACE_MS);
+        } else {
+          clearHistoryPoll();
+          set({ sending: false, activeRunId: null, lastUserMessageAt: null });
+        }
         break;
       }
       case 'aborted': {
         clearHistoryPoll();
+        clearErrorRecoveryTimer();
         set({
           sending: false,
           activeRunId: null,
diff --git a/src/stores/gateway.ts b/src/stores/gateway.ts
index 4d90ac3a5..76d5a1a91 100644
--- a/src/stores/gateway.ts
+++ b/src/stores/gateway.ts
@@ -99,8 +99,18 @@ export const useGatewayStore = create<GatewayState>((set, get) => ({
             import('./chat')
               .then(({ useChatStore }) => {
                 const state = useChatStore.getState();
+                // Always reload history on agent completion, regardless of
+                // the `sending` flag. After a transient error the flag may
+                // already be false, but the Gateway may have retried and
+                // completed successfully in the background.
+                state.loadHistory(true);
                 if (state.sending) {
-                  state.loadHistory(true);
+                  useChatStore.setState({
+                    sending: false,
+                    activeRunId: null,
+                    pendingFinal: false,
+                    lastUserMessageAt: null,
+                  });
                 }
               })
               .catch(() => {});