diff --git a/src/lib/Sidebar.svelte b/src/lib/Sidebar.svelte
index b32ac54..6fe6fce 100644
--- a/src/lib/Sidebar.svelte
+++ b/src/lib/Sidebar.svelte
@@ -1,6 +1,7 @@
 <script lang="ts">
   import { page, settings, tasks, saveSettings } from "$lib/stores/page.svelte.js";
   import { Mic, FileText, SquareCheck, Clock, Settings, ChevronRight, ChevronLeft } from 'lucide-svelte';
+  import LlmStatusChip from "$lib/components/LlmStatusChip.svelte";
 
   let taskCount = $derived(tasks.filter((t) => !t.done).length);
 
@@ -53,6 +54,17 @@
 
   {#if !collapsed}
     <p class="text-[10px] text-text-tertiary px-5 mt-1.5 tracking-[0.12em] uppercase">Think out loud</p>
+    <!-- LLM status chip — hidden when aiTier === off, otherwise reflects
+         disconnected / warming / ready / generating / error state live. -->
+    <div class="px-5 mt-2">
+      <LlmStatusChip />
+    </div>
+  {:else}
+    <!-- Collapsed: compact dot-only chip so the sidebar still surfaces
+         the state without eating horizontal space. -->
+    <div class="mt-2 flex justify-center">
+      <LlmStatusChip compact />
+    </div>
   {/if}
 
   <!-- Separator -->
diff --git a/src/lib/components/LlmStatusChip.svelte b/src/lib/components/LlmStatusChip.svelte
new file mode 100644
index 0000000..9f893f1
--- /dev/null
+++ b/src/lib/components/LlmStatusChip.svelte
@@ -0,0 +1,60 @@
+<script lang="ts">
+  // @ts-nocheck
+  import { Sparkles, AlertTriangle } from "lucide-svelte";
+  import { llmStatus } from "$lib/stores/llmStatus.svelte.js";
+
+  let { compact = false } = $props<{ compact?: boolean }>();
+
+  let label = $derived.by(() => {
+    switch (llmStatus.kind) {
+      case "warming":
+        return llmStatus.detail ?? "AI warming";
+      case "ready":
+        return "AI ready";
+      case "generating":
+        return llmStatus.detail ?? "Cleaning…";
+      case "error":
+        return "AI error";
+      default:
+        return "";
+    }
+  });
+
+  let dotClass = $derived.by(() => {
+    switch (llmStatus.kind) {
+      case "warming":
+        return "bg-warning animate-pulse";
+      case "ready":
+        return "bg-success";
+      case "generating":
+        return "bg-accent animate-pulse";
+      case "error":
+        return "bg-danger";
+      default:
+        return "bg-text-tertiary";
+    }
+  });
+</script>
+
+{#if llmStatus.kind !== "off"}
+  {#if compact}
+    <span
+      class="inline-flex items-center justify-center w-[10px] h-[10px] rounded-full {dotClass}"
+      title={label}
+      aria-label={label}
+    ></span>
+  {:else}
+    <span
+      class="inline-flex items-center gap-1.5 px-2 py-[3px] rounded-full bg-bg-elevated border border-border-subtle text-[10px] text-text-secondary whitespace-nowrap"
+      title={llmStatus.detail ?? label}
+    >
+      <span class="inline-block w-[6px] h-[6px] rounded-full {dotClass}"></span>
+      {#if llmStatus.kind === "error"}
+        <AlertTriangle size={10} class="text-danger" />
+      {:else if llmStatus.kind === "generating"}
+        <Sparkles size={10} class="text-accent" />
+      {/if}
+      <span>{label}</span>
+    </span>
+  {/if}
+{/if}
diff --git a/src/lib/pages/DictationPage.svelte b/src/lib/pages/DictationPage.svelte
index 079ec65..7c1aeb8 100644
--- a/src/lib/pages/DictationPage.svelte
+++ b/src/lib/pages/DictationPage.svelte
@@ -5,6 +5,7 @@
   import { emit } from "@tauri-apps/api/event";
   import { getCurrentWindow } from "@tauri-apps/api/window";
   import { page, settings, templates, profiles, addToHistory, addTask, tasks } from "$lib/stores/page.svelte.js";
+  import { markGenerating, markGenerationDone } from "$lib/stores/llmStatus.svelte.js";
   import { profilesStore } from "$lib/stores/profiles.svelte.ts";
   import { toasts } from "$lib/stores/toasts.svelte.js";
   import Card from "$lib/components/Card.svelte";
@@ -444,14 +445,20 @@
     const llmLoaded = await invoke("get_llm_status").catch(() => false);
     if (!llmLoaded) return text;
 
+    // Flip the sidebar LLM status chip to "generating" so the user can
+    // see the cleanup pass in flight (brief item #31). Always paired
+    // with markGenerationDone below — success or failure.
+    markGenerating("Cleaning up");
     try {
       const cleaned = await invoke("cleanup_transcript_text_cmd", {
         transcript: text,
         profileId: profilesStore.activeProfileId,
       });
+      markGenerationDone(true);
       return cleaned?.trim() ? cleaned.trim() : text;
     } catch (err) {
       console.warn("LLM cleanup failed, keeping existing transcript", err);
+      markGenerationDone(false, typeof err === "string" ? err : err?.message ?? null);
       return text;
     }
   }
@@ -459,11 +466,14 @@
   async function extractTasksForTranscript(text) {
     const llmLoaded = await invoke("get_llm_status").catch(() => false);
     if (settings.aiTier === "tasks" && llmLoaded) {
+      markGenerating("Extracting tasks");
       try {
         const items = await invoke("extract_tasks_from_transcript_cmd", { transcript: text });
+        markGenerationDone(true);
         return items.map((taskText) => ({ text: taskText }));
       } catch (err) {
         console.warn("LLM extract_tasks failed, falling back to regex", err);
+        markGenerationDone(false, typeof err === "string" ? err : err?.message ?? null);
       }
     }
 
diff --git a/src/lib/pages/SettingsPage.svelte b/src/lib/pages/SettingsPage.svelte
index 1019fcf..03fbe3c 100644
--- a/src/lib/pages/SettingsPage.svelte
+++ b/src/lib/pages/SettingsPage.svelte
@@ -18,6 +18,10 @@
   import { Check, ChevronRight } from "lucide-svelte";
   import { _ } from "svelte-i18n";
   import { SUPPORTED_LOCALES, setLocale, currentLocale } from "$lib/i18n";
+  // Aliased because SettingsPage has its own local refreshLlmStatus
+  // that just mutates the page-local llmLoaded bool. The store
+  // version drives the sidebar chip (brief item #31).
+  import { refreshLlmStatus as refreshGlobalLlmStatus } from "$lib/stores/llmStatus.svelte.js";
 
   const prefs = getPreferences();
 
@@ -515,6 +519,7 @@
       await invoke("download_llm_model", { modelId });
       llmDownloadingModel = "";
       await refreshLlmStatus();
+      await refreshGlobalLlmStatus(settings.aiTier);
       llmStatus = "Download complete";
     } catch (err) {
       llmDownloadingModel = "";
@@ -528,6 +533,7 @@
     try {
       await invoke("load_llm_model", { modelId });
       await refreshLlmStatus();
+      await refreshGlobalLlmStatus(settings.aiTier);
     } catch (err) {
       llmStatus = typeof err === "string" ? err : "LLM load failed";
     }
@@ -537,6 +543,7 @@
     try {
       await invoke("unload_llm_model");
       await refreshLlmStatus();
+      await refreshGlobalLlmStatus(settings.aiTier);
       llmStatus = "Model unloaded";
     } catch (err) {
       llmStatus = typeof err === "string" ? err : "LLM unload failed";
@@ -548,6 +555,7 @@
     try {
       await invoke("delete_llm_model", { modelId });
       await refreshLlmStatus();
+      await refreshGlobalLlmStatus(settings.aiTier);
       llmStatus = "Downloaded model removed";
     } catch (err) {
       llmStatus = typeof err === "string" ? err : "Delete failed";
@@ -574,6 +582,7 @@
       await unloadLlmModel();
     } else {
       await refreshLlmStatus();
+      await refreshGlobalLlmStatus(settings.aiTier);
     }
     llmStatus = llmModelDownloaded(modelId)
       ? "Selected model changed. Load it to enable AI features."
@@ -585,6 +594,7 @@
     if (openSection === 'ai') {
       await ensureRecommendedLlmTier();
       await refreshLlmStatus();
+      await refreshGlobalLlmStatus(settings.aiTier);
     }
   }
 
@@ -594,6 +604,7 @@
       systemInfo = await invoke("probe_system").catch(() => null);
       await ensureRecommendedLlmTier();
       await refreshLlmStatus();
+      await refreshGlobalLlmStatus(settings.aiTier);
       const loaded = await invoke("check_engine");
       engineOk = loaded;
       engineStatus = loaded ? "Model loaded" : "No model loaded";
diff --git a/src/lib/stores/llmStatus.svelte.ts b/src/lib/stores/llmStatus.svelte.ts
new file mode 100644
index 0000000..f8aaa5d
--- /dev/null
+++ b/src/lib/stores/llmStatus.svelte.ts
@@ -0,0 +1,64 @@
+import { invoke } from "@tauri-apps/api/core";
+import { hasTauriRuntime } from "$lib/utils/runtime.js";
+
+/// Visible LLM state for the status chip (brief item #31).
+///   off        — user has settings.aiTier === "off"; chip hidden.
+///   warming    — model download or load in progress.
+///   ready      — model loaded, idle.
+///   generating — an active cleanup_transcript_text_cmd call is in flight.
+///   error      — last health check or generation failed.
+export type LlmStatusKind = "off" | "warming" | "ready" | "generating" | "error";
+
+export interface LlmStatusState {
+  kind: LlmStatusKind;
+  /// Optional short phrase for the chip to surface (e.g. "Loading Qwen3 4B").
+  detail: string | null;
+}
+
+export const llmStatus = $state<LlmStatusState>({ kind: "off", detail: null });
+
+/// Poll `get_llm_status` once. Cheap enough to call on layout mount, on
+/// recording start, and on Settings-panel open. Keeps the chip in sync
+/// with loads / unloads that happen outside the frontend's observation
+/// path (first-run, background reload). The `aiTier` input short-circuits
+/// to "off" so we don't show a chip when the user has opted out.
+export async function refreshLlmStatus(aiTier: string): Promise<void> {
+  if (aiTier === "off") {
+    llmStatus.kind = "off";
+    llmStatus.detail = null;
+    return;
+  }
+  if (!hasTauriRuntime()) {
+    // Running in a pure-browser preview (vite dev without tauri) — leave
+    // the chip off rather than asserting a loaded state we can't verify.
+    llmStatus.kind = "off";
+    llmStatus.detail = null;
+    return;
+  }
+  try {
+    const loaded = await invoke<boolean>("get_llm_status");
+    // Don't clobber a "generating" state with "ready" — a parallel
+    // cleanup call in flight is a truer signal than the load status.
+    if (llmStatus.kind === "generating") return;
+    llmStatus.kind = loaded ? "ready" : "warming";
+    llmStatus.detail = null;
+  } catch (err) {
+    llmStatus.kind = "error";
+    llmStatus.detail = typeof err === "string" ? err : (err as Error)?.message ?? "Unknown error";
+  }
+}
+
+export function markGenerating(detail: string | null = null): void {
+  llmStatus.kind = "generating";
+  llmStatus.detail = detail;
+}
+
+export function markGenerationDone(success: boolean, detail: string | null = null): void {
+  if (success) {
+    llmStatus.kind = "ready";
+    llmStatus.detail = null;
+  } else {
+    llmStatus.kind = "error";
+    llmStatus.detail = detail;
+  }
+}
diff --git a/src/routes/+layout.svelte b/src/routes/+layout.svelte
index 45f1c30..28f1836 100644
--- a/src/routes/+layout.svelte
+++ b/src/routes/+layout.svelte
@@ -22,6 +22,7 @@
   import { listen } from "@tauri-apps/api/event";
   import { toasts } from "$lib/stores/toasts.svelte.js";
   import { initI18n } from "$lib/i18n";
+  import { refreshLlmStatus } from "$lib/stores/llmStatus.svelte.js";
 
   import { page as sveltePage } from "$app/stores";
 
@@ -301,6 +302,12 @@
       })
       .catch(() => { /* update check failure must not affect the app */ });
 
+    // Seed the LLM status chip (sidebar) with whichever state the
+    // backend is in right now. The chip also reacts to the $effect
+    // on settings.aiTier below and to explicit mark-generating
+    // calls from DictationPage around cleanup_transcript_text_cmd.
+    refreshLlmStatus(settings.aiTier).catch(() => {});
+
     // Meeting auto-capture: poll the process list and toast when a match
     // appears (edge-triggered — no repeat toasts until the app goes away
     // and comes back). We never start recording from this signal; the