diff --git a/packages/cli/src/ui/App.tsx b/packages/cli/src/ui/App.tsx
index 4921c93e..ac36b87c 100644
--- a/packages/cli/src/ui/App.tsx
+++ b/packages/cli/src/ui/App.tsx
@@ -182,8 +182,17 @@ export const App = ({
       handleSlashCommand,
       shellModeActive,
     );
-  const { elapsedTime, currentLoadingPhrase } =
-    useLoadingIndicator(streamingState);
+  const isPausedForConfirmation = useMemo(
+    () =>
+      pendingHistoryItems.some(
+        (item) =>
+          item?.type === 'tool_group' &&
+          item.tools.some((tool) => tool.status === 'Confirming'),
+      ),
+    [pendingHistoryItems],
+  );
+  const { elapsedTime, currentLoadingPhrase, shouldShowSpinner } =
+    useLoadingIndicator(streamingState, isPausedForConfirmation);
   const showAutoAcceptIndicator = useAutoAcceptIndicator({ config });
 
   const handleFinalSubmit = useCallback(
@@ -302,6 +311,7 @@ export const App = ({
               key={h.id}
               item={h}
               isPending={false}
+              streamingState={streamingState}
             />
           )),
         ]}
@@ -317,6 +327,7 @@ export const App = ({
             // HistoryItemDisplay. Refactor later. Use a fake id for now.
             item={{ ...item, id: 0 }}
             isPending={true}
+            streamingState={streamingState}
           />
         ))}
       </Box>
@@ -356,6 +367,7 @@ export const App = ({
           <>
             <LoadingIndicator
               isLoading={streamingState === StreamingState.Responding}
+              showSpinner={shouldShowSpinner}
               currentLoadingPhrase={currentLoadingPhrase}
               elapsedTime={elapsedTime}
             />
diff --git a/packages/cli/src/ui/components/HistoryItemDisplay.tsx b/packages/cli/src/ui/components/HistoryItemDisplay.tsx
index 0b61fc04..9a93d09f 100644
--- a/packages/cli/src/ui/components/HistoryItemDisplay.tsx
+++ b/packages/cli/src/ui/components/HistoryItemDisplay.tsx
@@ -5,7 +5,7 @@
  */
 
 import React from 'react';
-import type { HistoryItem } from '../types.js';
+import type { HistoryItem, StreamingState } from '../types.js';
 import { UserMessage } from './messages/UserMessage.js';
 import { UserShellMessage } from './messages/UserShellMessage.js';
 import { GeminiMessage } from './messages/GeminiMessage.js';
@@ -19,12 +19,14 @@ interface HistoryItemDisplayProps {
   item: HistoryItem;
   availableTerminalHeight: number;
   isPending: boolean;
+  streamingState?: StreamingState;
 }
 
 export const HistoryItemDisplay: React.FC<HistoryItemDisplayProps> = ({
   item,
   availableTerminalHeight,
   isPending,
+  streamingState,
 }) => (
   <Box flexDirection="column" key={item.id}>
     {/* Render standard message types */}
@@ -51,6 +53,7 @@ export const HistoryItemDisplay: React.FC<HistoryItemDisplayProps> = ({
         toolCalls={item.tools}
         groupId={item.id}
         availableTerminalHeight={availableTerminalHeight}
+        streamingState={streamingState}
       />
     )}
   </Box>
diff --git a/packages/cli/src/ui/components/LoadingIndicator.test.tsx b/packages/cli/src/ui/components/LoadingIndicator.test.tsx
new file mode 100644
index 00000000..6a8880d4
--- /dev/null
+++ b/packages/cli/src/ui/components/LoadingIndicator.test.tsx
@@ -0,0 +1,94 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { render } from 'ink-testing-library';
+import { Text } from 'ink'; // Import Text directly from ink
+import { LoadingIndicator } from './LoadingIndicator.js';
+
+vi.mock('ink-spinner', () => ({
+  default: function MockSpinner() {
+    return <Text>MockSpinner</Text>;
+  },
+}));
+
+describe('<LoadingIndicator />', () => {
+  it('should not render when isLoading is false', () => {
+    const { lastFrame } = render(
+      <LoadingIndicator
+        isLoading={false}
+        showSpinner={true}
+        currentLoadingPhrase="Loading..."
+        elapsedTime={0}
+      />,
+    );
+    expect(lastFrame()).toBe('');
+  });
+
+  it('should render spinner, phrase, and time when isLoading is true and showSpinner is true', () => {
+    const phrase = 'Processing data...';
+    const time = 5;
+    const { lastFrame } = render(
+      <LoadingIndicator
+        isLoading={true}
+        showSpinner={true}
+        currentLoadingPhrase={phrase}
+        elapsedTime={time}
+      />,
+    );
+
+    const output = lastFrame();
+    expect(output).toContain(phrase);
+    expect(output).toContain(`(esc to cancel, ${time}s)`);
+    // Check for spinner presence by looking for its characteristic characters or structure
+    // This is a bit fragile as it depends on Spinner's output.
+    // A more robust way would be to mock Spinner and check if it was rendered.
+    expect(output).toContain('MockSpinner'); // Check for the mocked spinner text
+  });
+
+  it('should render phrase and time but no spinner when isLoading is true and showSpinner is false', () => {
+    const phrase = 'Waiting for input...';
+    const time = 10;
+    const { lastFrame } = render(
+      <LoadingIndicator
+        isLoading={true}
+        showSpinner={false}
+        currentLoadingPhrase={phrase}
+        elapsedTime={time}
+      />,
+    );
+    const output = lastFrame();
+    expect(output).toContain(phrase);
+    expect(output).toContain(`(esc to cancel, ${time}s)`);
+    // Ensure spinner characters are NOT present
+    expect(output).not.toContain('MockSpinner');
+  });
+
+  it('should display the currentLoadingPhrase correctly', () => {
+    const specificPhrase = 'Almost there!';
+    const { lastFrame } = render(
+      <LoadingIndicator
+        isLoading={true}
+        showSpinner={true}
+        currentLoadingPhrase={specificPhrase}
+        elapsedTime={3}
+      />,
+    );
+    expect(lastFrame()).toContain(specificPhrase);
+  });
+
+  it('should display the elapsedTime correctly', () => {
+    const specificTime = 7;
+    const { lastFrame } = render(
+      <LoadingIndicator
+        isLoading={true}
+        showSpinner={true}
+        currentLoadingPhrase="Working..."
+        elapsedTime={specificTime}
+      />,
+    );
+    expect(lastFrame()).toContain(`(esc to cancel, ${specificTime}s)`);
+  });
+});
diff --git a/packages/cli/src/ui/components/LoadingIndicator.tsx b/packages/cli/src/ui/components/LoadingIndicator.tsx
index 4f342c9d..b0c24f80 100644
--- a/packages/cli/src/ui/components/LoadingIndicator.tsx
+++ b/packages/cli/src/ui/components/LoadingIndicator.tsx
@@ -11,6 +11,7 @@ import { Colors } from '../colors.js';
 
 interface LoadingIndicatorProps {
   isLoading: boolean;
+  showSpinner: boolean;
   currentLoadingPhrase: string;
   elapsedTime: number;
   rightContent?: React.ReactNode;
@@ -18,21 +19,25 @@ interface LoadingIndicatorProps {
 
 export const LoadingIndicator: React.FC<LoadingIndicatorProps> = ({
   isLoading,
+  showSpinner,
   currentLoadingPhrase,
   elapsedTime,
   rightContent,
 }) => {
   if (!isLoading) {
-    return null; // Don't render anything if not loading
+    return null;
   }
 
   return (
     <Box marginTop={1} paddingLeft={0}>
-      <Box marginRight={1}>
-        <Spinner type="dots" />
-      </Box>
+      {showSpinner && (
+        <Box marginRight={1}>
+          <Spinner type="dots" />
+        </Box>
+      )}
       <Text color={Colors.AccentPurple}>
-        {currentLoadingPhrase} (esc to cancel, {elapsedTime}s)
+        {currentLoadingPhrase}
+        {isLoading && ` (esc to cancel, ${elapsedTime}s)`}
       </Text>
       <Box flexGrow={1}>{/* Spacer */}</Box>
       {rightContent && <Box>{rightContent}</Box>}
diff --git a/packages/cli/src/ui/components/messages/ToolGroupMessage.tsx b/packages/cli/src/ui/components/messages/ToolGroupMessage.tsx
index 8bcde3bb..c6c8b874 100644
--- a/packages/cli/src/ui/components/messages/ToolGroupMessage.tsx
+++ b/packages/cli/src/ui/components/messages/ToolGroupMessage.tsx
@@ -6,7 +6,11 @@
 
 import React, { useMemo } from 'react';
 import { Box } from 'ink';
-import { IndividualToolCallDisplay, ToolCallStatus } from '../../types.js';
+import {
+  IndividualToolCallDisplay,
+  StreamingState,
+  ToolCallStatus,
+} from '../../types.js';
 import { ToolMessage } from './ToolMessage.js';
 import { ToolConfirmationMessage } from './ToolConfirmationMessage.js';
 import { Colors } from '../../colors.js';
@@ -15,12 +19,14 @@ interface ToolGroupMessageProps {
   groupId: number;
   toolCalls: IndividualToolCallDisplay[];
   availableTerminalHeight: number;
+  streamingState?: StreamingState;
 }
 
 // Main component renders the border and maps the tools using ToolMessage
 export const ToolGroupMessage: React.FC<ToolGroupMessageProps> = ({
   toolCalls,
   availableTerminalHeight,
+  streamingState,
 }) => {
   const hasPending = !toolCalls.every(
     (t) => t.status === ToolCallStatus.Success,
@@ -72,6 +78,7 @@ export const ToolGroupMessage: React.FC<ToolGroupMessageProps> = ({
                       ? 'low'
                       : 'medium'
                 }
+                streamingState={streamingState}
               />
             </Box>
             {tool.status === ToolCallStatus.Confirming &&
diff --git a/packages/cli/src/ui/components/messages/ToolMessage.test.tsx b/packages/cli/src/ui/components/messages/ToolMessage.test.tsx
new file mode 100644
index 00000000..1c81cc36
--- /dev/null
+++ b/packages/cli/src/ui/components/messages/ToolMessage.test.tsx
@@ -0,0 +1,152 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { render } from 'ink-testing-library';
+import { ToolMessage, ToolMessageProps } from './ToolMessage.js';
+import { StreamingState, ToolCallStatus } from '../../types.js';
+import { Text } from 'ink';
+
+// Mock child components or utilities if they are complex or have side effects
+vi.mock('ink-spinner', () => ({
+  default: () => <Text>MockSpinner</Text>,
+}));
+vi.mock('./DiffRenderer.js', () => ({
+  DiffRenderer: function MockDiffRenderer({
+    diffContent,
+  }: {
+    diffContent: string;
+  }) {
+    return <Text>MockDiff:{diffContent}</Text>;
+  },
+}));
+vi.mock('../../utils/MarkdownDisplay.js', () => ({
+  MarkdownDisplay: function MockMarkdownDisplay({ text }: { text: string }) {
+    return <Text>MockMarkdown:{text}</Text>;
+  },
+}));
+
+describe('<ToolMessage />', () => {
+  const baseProps: ToolMessageProps = {
+    callId: 'tool-123',
+    name: 'test-tool',
+    description: 'A tool for testing',
+    resultDisplay: 'Test result',
+    status: ToolCallStatus.Success,
+    availableTerminalHeight: 20,
+    confirmationDetails: undefined,
+    emphasis: 'medium',
+    streamingState: StreamingState.Idle,
+  };
+
+  it('renders basic tool information', () => {
+    const { lastFrame } = render(<ToolMessage {...baseProps} />);
+    const output = lastFrame();
+    expect(output).toContain('✔'); // Success indicator
+    expect(output).toContain('test-tool');
+    expect(output).toContain('A tool for testing');
+    expect(output).toContain('MockMarkdown:Test result');
+  });
+
+  describe('ToolStatusIndicator rendering', () => {
+    it('shows ✔ for Success status', () => {
+      const { lastFrame } = render(
+        <ToolMessage {...baseProps} status={ToolCallStatus.Success} />,
+      );
+      expect(lastFrame()).toContain('✔');
+    });
+
+    it('shows o for Pending status', () => {
+      const { lastFrame } = render(
+        <ToolMessage {...baseProps} status={ToolCallStatus.Pending} />,
+      );
+      expect(lastFrame()).toContain('o');
+    });
+
+    it('shows ? for Confirming status', () => {
+      const { lastFrame } = render(
+        <ToolMessage {...baseProps} status={ToolCallStatus.Confirming} />,
+      );
+      expect(lastFrame()).toContain('?');
+    });
+
+    it('shows - for Canceled status', () => {
+      const { lastFrame } = render(
+        <ToolMessage {...baseProps} status={ToolCallStatus.Canceled} />,
+      );
+      expect(lastFrame()).toContain('-');
+    });
+
+    it('shows x for Error status', () => {
+      const { lastFrame } = render(
+        <ToolMessage {...baseProps} status={ToolCallStatus.Error} />,
+      );
+      expect(lastFrame()).toContain('x');
+    });
+
+    it('shows MockSpinner for Executing status when streamingState is Idle', () => {
+      const { lastFrame } = render(
+        <ToolMessage
+          {...baseProps}
+          status={ToolCallStatus.Executing}
+          streamingState={StreamingState.Idle}
+        />,
+      );
+      expect(lastFrame()).toContain('MockSpinner');
+      expect(lastFrame()).not.toContain('✔');
+    });
+
+    it('shows MockSpinner for Executing status when streamingState is undefined (default behavior)', () => {
+      const { lastFrame } = render(
+        <ToolMessage {...baseProps} status={ToolCallStatus.Executing} />,
+      );
+      expect(lastFrame()).toContain('MockSpinner');
+      expect(lastFrame()).not.toContain('✔');
+    });
+
+    it('shows ✔ (paused/confirmed look) for Executing status when streamingState is Responding', () => {
+      // This is the key change from the commit: if the overall app is still responding
+      // (e.g., waiting for other tool confirmations), an already confirmed and executing tool
+      // should show a static checkmark to avoid spinner flicker.
+      const { lastFrame } = render(
+        <ToolMessage
+          {...baseProps}
+          status={ToolCallStatus.Executing}
+          streamingState={StreamingState.Responding} // Simulate app still responding
+        />,
+      );
+      expect(lastFrame()).toContain('✔'); // Should be a checkmark, not spinner
+      expect(lastFrame()).not.toContain('MockSpinner');
+    });
+  });
+
+  it('renders DiffRenderer for diff results', () => {
+    const diffResult = {
+      fileDiff: '--- a/file.txt\n+++ b/file.txt\n@@ -1 +1 @@\n-old\n+new',
+      fileName: 'file.txt',
+    };
+    const { lastFrame } = render(
+      <ToolMessage {...baseProps} resultDisplay={diffResult} />,
+    );
+    // Check that the output contains the MockDiff content as part of the whole message
+    expect(lastFrame()).toMatch(/MockDiff:--- a\/file\.txt/);
+  });
+
+  it('renders emphasis correctly', () => {
+    const { lastFrame: highEmphasisFrame } = render(
+      <ToolMessage {...baseProps} emphasis="high" />,
+    );
+    // Check for trailing indicator or specific color if applicable (Colors are not easily testable here)
+    expect(highEmphasisFrame()).toContain('←'); // Trailing indicator for high emphasis
+
+    const { lastFrame: lowEmphasisFrame } = render(
+      <ToolMessage {...baseProps} emphasis="low" />,
+    );
+    // For low emphasis, the name and description might be dimmed (check for dimColor if possible)
+    // This is harder to assert directly in text output without color checks.
+    // We can at least ensure it doesn't have the high emphasis indicator.
+    expect(lowEmphasisFrame()).not.toContain('←');
+  });
+});
diff --git a/packages/cli/src/ui/components/messages/ToolMessage.tsx b/packages/cli/src/ui/components/messages/ToolMessage.tsx
index 32b3b7e8..49743190 100644
--- a/packages/cli/src/ui/components/messages/ToolMessage.tsx
+++ b/packages/cli/src/ui/components/messages/ToolMessage.tsx
@@ -7,7 +7,11 @@
 import React from 'react';
 import { Box, Text } from 'ink';
 import Spinner from 'ink-spinner';
-import { IndividualToolCallDisplay, ToolCallStatus } from '../../types.js';
+import {
+  IndividualToolCallDisplay,
+  StreamingState,
+  ToolCallStatus,
+} from '../../types.js';
 import { DiffRenderer } from './DiffRenderer.js';
 import { Colors } from '../../colors.js';
 import { MarkdownDisplay } from '../../utils/MarkdownDisplay.js';
@@ -21,6 +25,7 @@ export type TextEmphasis = 'high' | 'medium' | 'low';
 export interface ToolMessageProps extends IndividualToolCallDisplay {
   availableTerminalHeight: number;
   emphasis?: TextEmphasis;
+  streamingState?: StreamingState;
 }
 
 export const ToolMessage: React.FC<ToolMessageProps> = ({
@@ -30,6 +35,7 @@ export const ToolMessage: React.FC<ToolMessageProps> = ({
   status,
   availableTerminalHeight,
   emphasis = 'medium',
+  streamingState,
 }) => {
   const contentHeightEstimate =
     availableTerminalHeight - STATIC_HEIGHT - RESERVED_LINE_COUNT;
@@ -57,7 +63,7 @@ export const ToolMessage: React.FC<ToolMessageProps> = ({
     <Box paddingX={1} paddingY={0} flexDirection="column">
       <Box minHeight={1}>
         {/* Status Indicator */}
-        <ToolStatusIndicator status={status} />
+        <ToolStatusIndicator status={status} streamingState={streamingState} />
         <ToolInfo
           name={name}
           status={status}
@@ -99,15 +105,32 @@ export const ToolMessage: React.FC<ToolMessageProps> = ({
   );
 };
 
-type ToolStatusIndicator = {
+type ToolStatusIndicatorProps = {
   status: ToolCallStatus;
+  streamingState?: StreamingState;
 };
-const ToolStatusIndicator: React.FC<ToolStatusIndicator> = ({ status }) => (
+const ToolStatusIndicator: React.FC<ToolStatusIndicatorProps> = ({
+  status,
+  streamingState,
+}) => (
   <Box minWidth={STATUS_INDICATOR_WIDTH}>
     {status === ToolCallStatus.Pending && (
       <Text color={Colors.AccentGreen}>o</Text>
     )}
-    {status === ToolCallStatus.Executing && <Spinner type="dots" />}
+    {status === ToolCallStatus.Executing &&
+      (streamingState === StreamingState.Responding ? (
+        // If the tool is responding that means the user has already confirmed
+        // this tool call, so we can show a checkmark. The call won't complete
+        // executing until all confirmations are done. Showing a spinner would
+        // be misleading as the task is not actually executing at the moment
+        // and also has flickering issues due to Ink rendering limitations.
+        // If this hack becomes a problem, we can always add an additional prop
+        // indicating that the tool was indeed confirmed. If the tool was not
+        // confirmed we could show a paused version of the spinner.
+        <Text color={Colors.Gray}>✔</Text>
+      ) : (
+        <Spinner type="dots" />
+      ))}
     {status === ToolCallStatus.Success && (
       <Text color={Colors.AccentGreen}>✔</Text>
     )}
diff --git a/packages/cli/src/ui/hooks/useGeminiStream.ts b/packages/cli/src/ui/hooks/useGeminiStream.ts
index 8468e61b..45415f39 100644
--- a/packages/cli/src/ui/hooks/useGeminiStream.ts
+++ b/packages/cli/src/ui/hooks/useGeminiStream.ts
@@ -414,15 +414,13 @@ export const useGeminiStream = (
     return StreamProcessingStatus.Completed;
   };
 
-  const streamingState: StreamingState = (() => {
-    if (toolCalls.some((t) => t.status === 'awaiting_approval')) {
-      return StreamingState.WaitingForConfirmation;
-    }
-    if (isResponding || toolCalls.some((t) => t.status === 'executing')) {
-      return StreamingState.Responding;
-    }
-    return StreamingState.Idle;
-  })();
+  const streamingState: StreamingState =
+    isResponding ||
+    toolCalls.some(
+      (t) => t.status === 'awaiting_approval' || t.status === 'executing',
+    )
+      ? StreamingState.Responding
+      : StreamingState.Idle;
 
   const submitQuery = useCallback(
     async (query: PartListUnion) => {
diff --git a/packages/cli/src/ui/hooks/useLoadingIndicator.test.ts b/packages/cli/src/ui/hooks/useLoadingIndicator.test.ts
new file mode 100644
index 00000000..496e13d3
--- /dev/null
+++ b/packages/cli/src/ui/hooks/useLoadingIndicator.test.ts
@@ -0,0 +1,164 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { describe, it, expect, vi, beforeEach, afterEach } from 'vitest';
+import { renderHook, act } from '@testing-library/react';
+import { useLoadingIndicator } from './useLoadingIndicator.js';
+import { StreamingState } from '../types.js';
+import {
+  WITTY_LOADING_PHRASES,
+  PHRASE_CHANGE_INTERVAL_MS,
+} from '../constants.js';
+
+describe('useLoadingIndicator', () => {
+  beforeEach(() => {
+    vi.useFakeTimers();
+  });
+
+  afterEach(() => {
+    vi.restoreAllMocks();
+  });
+
+  it('should initialize with default values when not responding', () => {
+    const { result } = renderHook(() =>
+      useLoadingIndicator(StreamingState.Idle, false),
+    );
+    expect(result.current.elapsedTime).toBe(0);
+    expect(result.current.currentLoadingPhrase).toBe(WITTY_LOADING_PHRASES[0]);
+    expect(result.current.shouldShowSpinner).toBe(true);
+  });
+
+  describe('when streamingState is Responding', () => {
+    it('should increment elapsedTime and cycle phrases when not paused', () => {
+      const { result } = renderHook(() =>
+        useLoadingIndicator(StreamingState.Responding, false),
+      );
+      expect(result.current.shouldShowSpinner).toBe(true);
+      expect(result.current.currentLoadingPhrase).toBe(
+        WITTY_LOADING_PHRASES[0],
+      );
+
+      act(() => {
+        vi.advanceTimersByTime(1000);
+      });
+      expect(result.current.elapsedTime).toBe(1);
+
+      act(() => {
+        vi.advanceTimersByTime(PHRASE_CHANGE_INTERVAL_MS);
+      });
+      expect(result.current.currentLoadingPhrase).toBe(
+        WITTY_LOADING_PHRASES[1],
+      );
+      expect(result.current.elapsedTime).toBe(
+        1 + PHRASE_CHANGE_INTERVAL_MS / 1000,
+      );
+    });
+
+    it('should pause elapsedTime, show specific phrase, and hide spinner when paused', () => {
+      const { result, rerender } = renderHook(
+        ({ isPaused }) =>
+          useLoadingIndicator(StreamingState.Responding, isPaused),
+        { initialProps: { isPaused: false } },
+      );
+
+      act(() => {
+        vi.advanceTimersByTime(2000);
+      });
+      expect(result.current.elapsedTime).toBe(2);
+      expect(result.current.shouldShowSpinner).toBe(true);
+
+      rerender({ isPaused: true });
+
+      expect(result.current.currentLoadingPhrase).toBe(
+        'Waiting for user confirmation...',
+      );
+      expect(result.current.shouldShowSpinner).toBe(false);
+
+      // Time should not advance while paused
+      const timeBeforePauseAdv = result.current.elapsedTime;
+      act(() => {
+        vi.advanceTimersByTime(3000);
+      });
+      expect(result.current.elapsedTime).toBe(timeBeforePauseAdv);
+
+      // Unpause
+      rerender({ isPaused: false });
+      expect(result.current.shouldShowSpinner).toBe(true);
+      // Phrase should reset to the beginning of witty phrases
+      expect(result.current.currentLoadingPhrase).toBe(
+        WITTY_LOADING_PHRASES[0],
+      );
+
+      act(() => {
+        vi.advanceTimersByTime(1000);
+      });
+      // Elapsed time should resume from where it left off
+      expect(result.current.elapsedTime).toBe(timeBeforePauseAdv + 1);
+    });
+
+    it('should reset timer and phrase when streamingState changes from Responding to Idle', () => {
+      const { result, rerender } = renderHook(
+        ({ streamingState }) => useLoadingIndicator(streamingState, false),
+        { initialProps: { streamingState: StreamingState.Responding } },
+      );
+
+      act(() => {
+        vi.advanceTimersByTime(PHRASE_CHANGE_INTERVAL_MS + 1000);
+      });
+      expect(result.current.elapsedTime).toBe(
+        PHRASE_CHANGE_INTERVAL_MS / 1000 + 1,
+      );
+      expect(result.current.currentLoadingPhrase).toBe(
+        WITTY_LOADING_PHRASES[1],
+      );
+
+      rerender({ streamingState: StreamingState.Idle });
+
+      expect(result.current.elapsedTime).toBe(0);
+      // When idle, the phrase interval should be cleared, but the last phrase might persist
+      // until the next "Responding" state. The important part is that the timer is reset.
+      // Depending on exact timing, it might be the last witty phrase or the first.
+      // For this test, we'll ensure it's one of them.
+      expect(WITTY_LOADING_PHRASES).toContain(
+        result.current.currentLoadingPhrase,
+      );
+    });
+  });
+
+  it('should clear intervals on unmount', () => {
+    const { unmount } = renderHook(() =>
+      useLoadingIndicator(StreamingState.Responding, false),
+    );
+    const clearIntervalSpy = vi.spyOn(global, 'clearInterval');
+    unmount();
+    // Expecting two intervals (elapsedTime and phraseInterval) to be cleared.
+    expect(clearIntervalSpy).toHaveBeenCalledTimes(2);
+  });
+
+  it('should reset to initial witty phrase when unpaused', () => {
+    const { result, rerender } = renderHook(
+      ({ isPaused }) =>
+        useLoadingIndicator(StreamingState.Responding, isPaused),
+      { initialProps: { isPaused: false } },
+    );
+
+    // Advance to the second witty phrase
+    act(() => {
+      vi.advanceTimersByTime(PHRASE_CHANGE_INTERVAL_MS);
+    });
+    expect(result.current.currentLoadingPhrase).toBe(WITTY_LOADING_PHRASES[1]);
+
+    // Pause
+    rerender({ isPaused: true });
+    expect(result.current.currentLoadingPhrase).toBe(
+      'Waiting for user confirmation...',
+    );
+
+    // Unpause
+    rerender({ isPaused: false });
+    expect(result.current.currentLoadingPhrase).toBe(WITTY_LOADING_PHRASES[0]);
+  });
+});
diff --git a/packages/cli/src/ui/hooks/useLoadingIndicator.ts b/packages/cli/src/ui/hooks/useLoadingIndicator.ts
index 6d1d77d4..ac75986a 100644
--- a/packages/cli/src/ui/hooks/useLoadingIndicator.ts
+++ b/packages/cli/src/ui/hooks/useLoadingIndicator.ts
@@ -11,7 +11,10 @@ import {
 } from '../constants.js';
 import { StreamingState } from '../types.js';
 
-export const useLoadingIndicator = (streamingState: StreamingState) => {
+export const useLoadingIndicator = (
+  streamingState: StreamingState,
+  isPaused: boolean,
+) => {
   const [elapsedTime, setElapsedTime] = useState(0);
   const [currentLoadingPhrase, setCurrentLoadingPhrase] = useState(
     WITTY_LOADING_PHRASES[0],
@@ -20,48 +23,79 @@ export const useLoadingIndicator = (streamingState: StreamingState) => {
   const phraseIntervalRef = useRef<NodeJS.Timeout | null>(null);
   const currentPhraseIndexRef = useRef<number>(0);
 
-  // Timer effect for elapsed time during loading
+  const [shouldShowSpinner, setShouldShowSpinner] = useState(true);
+
   useEffect(() => {
     if (streamingState === StreamingState.Responding) {
-      setElapsedTime(0); // Reset timer on new loading start
-      timerRef.current = setInterval(() => {
-        setElapsedTime((prevTime) => prevTime + 1);
-      }, 1000);
-    } else if (timerRef.current) {
-      clearInterval(timerRef.current);
-      timerRef.current = null;
+      if (!isPaused) {
+        if (!timerRef.current) {
+          // No specific action needed here if timer wasn't running and we are not paused.
+          // Elapsed time continues from where it left off or starts from 0 if it's a fresh start.
+        }
+        if (timerRef.current) clearInterval(timerRef.current);
+        timerRef.current = setInterval(() => {
+          setElapsedTime((prevTime) => prevTime + 1);
+        }, 1000);
+      } else {
+        if (timerRef.current) {
+          clearInterval(timerRef.current);
+          timerRef.current = null;
+        }
+      }
+    } else {
+      if (timerRef.current) {
+        clearInterval(timerRef.current);
+        timerRef.current = null;
+      }
+      setElapsedTime(0);
     }
-    // Cleanup on unmount or when isLoading changes
+
     return () => {
       if (timerRef.current) {
         clearInterval(timerRef.current);
+        timerRef.current = null;
       }
     };
-  }, [streamingState]);
+  }, [streamingState, isPaused]);
 
-  // Effect for cycling through witty loading phrases
   useEffect(() => {
     if (streamingState === StreamingState.Responding) {
-      currentPhraseIndexRef.current = 0;
-      setCurrentLoadingPhrase(WITTY_LOADING_PHRASES[0]);
-      phraseIntervalRef.current = setInterval(() => {
-        currentPhraseIndexRef.current =
-          (currentPhraseIndexRef.current + 1) % WITTY_LOADING_PHRASES.length;
-        setCurrentLoadingPhrase(
-          WITTY_LOADING_PHRASES[currentPhraseIndexRef.current],
-        );
-      }, PHRASE_CHANGE_INTERVAL_MS);
-    } else if (phraseIntervalRef.current) {
-      clearInterval(phraseIntervalRef.current);
-      phraseIntervalRef.current = null;
+      if (!isPaused) {
+        setShouldShowSpinner(true);
+        if (!phraseIntervalRef.current) {
+          currentPhraseIndexRef.current = 0;
+          setCurrentLoadingPhrase(WITTY_LOADING_PHRASES[0]);
+          phraseIntervalRef.current = setInterval(() => {
+            currentPhraseIndexRef.current =
+              (currentPhraseIndexRef.current + 1) %
+              WITTY_LOADING_PHRASES.length;
+            setCurrentLoadingPhrase(
+              WITTY_LOADING_PHRASES[currentPhraseIndexRef.current],
+            );
+          }, PHRASE_CHANGE_INTERVAL_MS);
+        }
+      } else {
+        setShouldShowSpinner(false);
+        setCurrentLoadingPhrase('Waiting for user confirmation...');
+        if (phraseIntervalRef.current) {
+          clearInterval(phraseIntervalRef.current);
+          phraseIntervalRef.current = null;
+        }
+      }
+    } else {
+      if (phraseIntervalRef.current) {
+        clearInterval(phraseIntervalRef.current);
+        phraseIntervalRef.current = null;
+      }
     }
-    // Cleanup on unmount or when isLoading changes
+
     return () => {
       if (phraseIntervalRef.current) {
         clearInterval(phraseIntervalRef.current);
+        phraseIntervalRef.current = null;
       }
     };
-  }, [streamingState]);
+  }, [streamingState, isPaused]);
 
-  return { elapsedTime, currentLoadingPhrase };
+  return { elapsedTime, currentLoadingPhrase, shouldShowSpinner };
 };