diff --git a/frontend/src/utils/__tests__/status.test.ts b/frontend/__tests__/utils/status.test.ts
similarity index 86%
rename from frontend/src/utils/__tests__/status.test.ts
rename to frontend/__tests__/utils/status.test.ts
index cca6c0efaf..66dea4c799 100644
--- a/frontend/src/utils/__tests__/status.test.ts
+++ b/frontend/__tests__/utils/status.test.ts
@@ -1,5 +1,5 @@
 import { describe, it, expect } from "vitest";
-import { getStatusCode, getIndicatorColor, IndicatorColor } from "../status";
+import { getStatusCode, getIndicatorColor, IndicatorColor } from "#/utils/status";
 import { AgentState } from "#/types/agent-state";
 import { I18nKey } from "#/i18n/declaration";
 
@@ -87,6 +87,36 @@ describe("getStatusCode", () => {
     // Should return runtime status since no agent state
     expect(result).toBe("STATUS$STARTING_RUNTIME");
   });
+
+  it("should prioritize task ERROR status over websocket CONNECTING state", () => {
+    // Test case: Task has errored but websocket is still trying to connect
+    const result = getStatusCode(
+      { id: "", message: "", type: "info", status_update: true }, // statusMessage
+      "CONNECTING", // webSocketStatus (stuck connecting)
+      null, // conversationStatus
+      null, // runtimeStatus
+      AgentState.LOADING, // agentState
+      "ERROR", // taskStatus (ERROR)
+    );
+
+    // Should return error message, not "Connecting..."
+    expect(result).toBe(I18nKey.AGENT_STATUS$ERROR_OCCURRED);
+  });
+
+  it("should show Connecting when task is working and websocket is connecting", () => {
+    // Test case: Task is in progress and websocket is connecting normally
+    const result = getStatusCode(
+      { id: "", message: "", type: "info", status_update: true }, // statusMessage
+      "CONNECTING", // webSocketStatus
+      null, // conversationStatus
+      null, // runtimeStatus
+      AgentState.LOADING, // agentState
+      "WORKING", // taskStatus (in progress)
+    );
+
+    // Should show connecting message since task hasn't errored
+    expect(result).toBe(I18nKey.CHAT_INTERFACE$CONNECTING);
+  });
 });
 
 describe("getIndicatorColor", () => {
diff --git a/frontend/src/components/features/controls/agent-status.tsx b/frontend/src/components/features/controls/agent-status.tsx
index 5bfd18f486..68165ddf97 100644
--- a/frontend/src/components/features/controls/agent-status.tsx
+++ b/frontend/src/components/features/controls/agent-status.tsx
@@ -13,6 +13,7 @@ import { useConversationStore } from "#/state/conversation-store";
 import CircleErrorIcon from "#/icons/circle-error.svg?react";
 import { useAgentState } from "#/hooks/use-agent-state";
 import { useUnifiedWebSocketStatus } from "#/hooks/use-unified-websocket-status";
+import { useTaskPolling } from "#/hooks/query/use-task-polling";
 
 export interface AgentStatusProps {
   className?: string;
@@ -35,6 +36,7 @@ export function AgentStatus({
   const { curStatusMessage } = useStatusStore();
   const webSocketStatus = useUnifiedWebSocketStatus();
   const { data: conversation } = useActiveConversation();
+  const { taskStatus } = useTaskPolling();
 
   const statusCode = getStatusCode(
     curStatusMessage,
@@ -42,17 +44,24 @@ export function AgentStatus({
     conversation?.status || null,
     conversation?.runtime_status || null,
     curAgentState,
+    taskStatus,
   );
 
+  const isTaskLoading =
+    taskStatus && taskStatus !== "ERROR" && taskStatus !== "READY";
+
   const shouldShownAgentLoading =
     isPausing ||
     curAgentState === AgentState.INIT ||
     curAgentState === AgentState.LOADING ||
-    webSocketStatus === "CONNECTING";
+    (webSocketStatus === "CONNECTING" && taskStatus !== "ERROR") ||
+    isTaskLoading;
 
   const shouldShownAgentError =
     curAgentState === AgentState.ERROR ||
-    curAgentState === AgentState.RATE_LIMITED;
+    curAgentState === AgentState.RATE_LIMITED ||
+    webSocketStatus === "DISCONNECTED" ||
+    taskStatus === "ERROR";
 
   const shouldShownAgentStop = curAgentState === AgentState.RUNNING;
 
@@ -61,7 +70,8 @@ export function AgentStatus({
 
   // Update global state when agent loading condition changes
   useEffect(() => {
-    setShouldShownAgentLoading(shouldShownAgentLoading);
+    if (shouldShownAgentLoading)
+      setShouldShownAgentLoading(shouldShownAgentLoading);
   }, [shouldShownAgentLoading, setShouldShownAgentLoading]);
 
   return (
diff --git a/frontend/src/utils/status.ts b/frontend/src/utils/status.ts
index b450892fa1..7b5ef5a126 100644
--- a/frontend/src/utils/status.ts
+++ b/frontend/src/utils/status.ts
@@ -4,6 +4,7 @@ import { AgentState } from "#/types/agent-state";
 import { ConversationStatus } from "#/types/conversation-status";
 import { StatusMessage } from "#/types/message";
 import { RuntimeStatus } from "#/types/runtime-status";
+import { V1AppConversationStartTaskStatus } from "#/api/conversation-service/v1-conversation-service.types";
 
 export enum IndicatorColor {
   BLUE = "bg-blue-500",
@@ -103,8 +104,15 @@ export function getStatusCode(
   conversationStatus: ConversationStatus | null,
   runtimeStatus: RuntimeStatus | null,
   agentState: AgentState | null,
+  taskStatus?: V1AppConversationStartTaskStatus | null,
 ) {
-  // Handle conversation and runtime stopped states
+  // PRIORITY 1: Handle task error state (when start-tasks API returns ERROR)
+  // This must come first to prevent "Connecting..." from showing when task has errored
+  if (taskStatus === "ERROR") {
+    return I18nKey.AGENT_STATUS$ERROR_OCCURRED;
+  }
+
+  // PRIORITY 2: Handle conversation and runtime stopped states
   if (conversationStatus === "STOPPED" || runtimeStatus === "STATUS$STOPPED") {
     return I18nKey.CHAT_INTERFACE$STOPPED;
   }
@@ -134,7 +142,8 @@ export function getStatusCode(
     return runtimeStatus;
   }
 
-  // Handle WebSocket connection states
+  // PRIORITY 3: Handle WebSocket connection states
+  // Note: WebSocket may be stuck in CONNECTING when task errors, so we check taskStatus first
   if (webSocketStatus === "DISCONNECTED") {
     return I18nKey.CHAT_INTERFACE$DISCONNECTED;
   }