diff --git a/ui/desktop/src/components/ChatInput.tsx b/ui/desktop/src/components/ChatInput.tsx
index 1d6c6125..cd14a094 100644
--- a/ui/desktop/src/components/ChatInput.tsx
+++ b/ui/desktop/src/components/ChatInput.tsx
@@ -21,6 +21,7 @@ import { toastError } from '../toasts';
 import MentionPopover, { DisplayItemWithMatch } from './MentionPopover';
 import { COST_TRACKING_ENABLED } from '../updates';
 import { CostTracker } from './bottom_menu/CostTracker';
+import { ContextWindowIndicator } from './bottom_menu/ContextWindowIndicator';
 import { DroppedFile, useFileDrop } from '../hooks/useFileDrop';
 import { Recipe } from '../recipe';
 import { MessageQueue, QueuedMessage } from './MessageQueue';
@@ -1628,13 +1629,17 @@ export default function ChatInput({
               </div>
             </>
           )}
+          <ContextWindowIndicator
+            totalTokens={totalTokens || 0}
+            tokenLimit={tokenLimit}
+            alerts={alerts}
+          />
           <Tooltip>
             <div>
               <ModelsBottomBar
                 sessionId={sessionId}
                 dropdownRef={dropdownRef}
                 setView={setView}
-                alerts={alerts}
                 sessionModel={effectiveModel}
                 sessionProvider={effectiveProvider}
                 onModelChanged={setModelOverride}
diff --git a/ui/desktop/src/components/alerts/AlertBox.tsx b/ui/desktop/src/components/alerts/AlertBox.tsx
index 746088a4..3e987d3a 100644
--- a/ui/desktop/src/components/alerts/AlertBox.tsx
+++ b/ui/desktop/src/components/alerts/AlertBox.tsx
@@ -41,17 +41,6 @@ const alertStyles: Record<AlertType, string> = {
   [AlertType.Info]: 'dark:bg-white dark:text-black bg-black text-white',
 };
 
-const formatTokenCount = (count: number): string => {
-  if (count >= 1000000) {
-    const millions = count / 1000000;
-    return millions % 1 === 0 ? `${millions.toFixed(0)}M` : `${millions.toFixed(1)}M`;
-  } else if (count >= 1000) {
-    const thousands = count / 1000;
-    return thousands % 1 === 0 ? `${thousands.toFixed(0)}k` : `${thousands.toFixed(1)}k`;
-  }
-  return count.toString();
-};
-
 export const AlertBox = ({ alert, className }: AlertBoxProps) => {
   const intl = useIntl();
   const { read } = useConfig();
@@ -125,8 +114,6 @@ export const AlertBox = ({ alert, className }: AlertBoxProps) => {
     >
       {alert.progress ? (
         <div className="flex flex-col gap-2">
-          <span className="text-[11px]">{alert.message}</span>
-
           {/* Auto-compact threshold indicator with edit */}
           <div className="flex items-center justify-center gap-1 min-h-[20px]">
             {isEditingThreshold ? (
@@ -140,16 +127,13 @@ export const AlertBox = ({ alert, className }: AlertBoxProps) => {
                   value={thresholdValue}
                   onChange={(e) => {
                     const val = parseInt(e.target.value, 10);
-                    // Allow empty input for easier editing
                     if (e.target.value === '') {
                       setThresholdValue(1);
                     } else if (!isNaN(val)) {
-                      // Clamp value between 1 and 100
                       setThresholdValue(Math.max(1, Math.min(100, val)));
                     }
                   }}
                   onBlur={(e) => {
-                    // On blur, ensure we have a valid value
                     const val = parseInt(e.target.value, 10);
                     if (isNaN(val) || val < 1) {
                       setThresholdValue(1);
@@ -167,11 +151,9 @@ export const AlertBox = ({ alert, className }: AlertBoxProps) => {
                     }
                   }}
                   onFocus={(e) => {
-                    // Select all text on focus for easier editing
                     e.target.select();
                   }}
                   onClick={(e) => {
-                    // Prevent issues with text selection
                     e.stopPropagation();
                   }}
                   className="w-12 px-1 text-[10px] bg-white/10 border border-current/30 rounded outline-none text-center focus:bg-white/20 focus:border-current/50 transition-colors"
@@ -213,72 +195,6 @@ export const AlertBox = ({ alert, className }: AlertBoxProps) => {
               </>
             )}
           </div>
-
-          <div className="flex justify-between w-full relative">
-            {(() => {
-              let closestDotIndex = -1;
-              if (currentThreshold !== undefined && currentThreshold > 0 && currentThreshold <= 1) {
-                let minDistance = Infinity;
-                for (let j = 0; j < 30; j++) {
-                  const dotPos = j / 29;
-                  const distance = Math.abs(dotPos - currentThreshold);
-                  if (distance < minDistance) {
-                    minDistance = distance;
-                    closestDotIndex = j;
-                  }
-                }
-              }
-
-              return [...Array(30)].map((_, i) => {
-                const progress = alert.progress!.current / alert.progress!.total;
-                const progressPercentage = Math.round(progress * 100);
-                const dotPosition = i / 29; // 0 to 1 range for 30 dots
-                const isActive = dotPosition <= progress;
-                const isThresholdDot = i === closestDotIndex;
-
-                const getProgressColor = () => {
-                  if (progressPercentage <= 50) {
-                    return 'bg-green-500';
-                  } else if (progressPercentage <= 75) {
-                    return 'bg-yellow-500';
-                  } else if (progressPercentage <= 90) {
-                    return 'bg-orange-500';
-                  } else {
-                    return 'bg-red-500';
-                  }
-                };
-
-                const progressColor = getProgressColor();
-                const inactiveColor = 'bg-gray-300 dark:bg-gray-600';
-
-                return (
-                  <div
-                    key={i}
-                    className={cn(
-                      'rounded-full transition-all relative',
-                      isThresholdDot
-                        ? 'h-[6px] w-[6px] -mt-[2px]' // Make threshold dot twice as large
-                        : 'h-[2px] w-[2px]',
-                      isActive ? progressColor : inactiveColor
-                    )}
-                  />
-                );
-              });
-            })()}
-          </div>
-          <div className="flex justify-between items-baseline text-[11px]">
-            <div className="flex gap-1 items-baseline">
-              <span className={'dark:text-black/60 text-white/60'}>
-                {formatTokenCount(alert.progress!.current)}
-              </span>
-              <span className={'dark:text-black/40 text-white/40'}>
-                {Math.round((alert.progress!.current / alert.progress!.total) * 100)}%
-              </span>
-            </div>
-            <span className={'dark:text-black/60 text-white/60'}>
-              {formatTokenCount(alert.progress!.total)}
-            </span>
-          </div>
           {alert.showCompactButton && alert.onCompact && (
             <button
               onClick={(e) => {
@@ -288,7 +204,7 @@ export const AlertBox = ({ alert, className }: AlertBoxProps) => {
               }}
               disabled={alert.compactButtonDisabled}
               className={cn(
-                'flex items-center gap-1.5 text-[11px] outline-none mt-1',
+                'flex items-center justify-center gap-1.5 text-[11px] outline-none',
                 alert.compactButtonDisabled
                   ? 'opacity-50 cursor-not-allowed'
                   : 'hover:opacity-80 cursor-pointer'
diff --git a/ui/desktop/src/components/alerts/__tests__/AlertBox.test.tsx b/ui/desktop/src/components/alerts/__tests__/AlertBox.test.tsx
index 43776e80..96470118 100644
--- a/ui/desktop/src/components/alerts/__tests__/AlertBox.test.tsx
+++ b/ui/desktop/src/components/alerts/__tests__/AlertBox.test.tsx
@@ -73,8 +73,8 @@ describe('AlertBox', () => {
     });
   });
 
-  describe('Progress Bar', () => {
-    it('should render progress bar when progress is provided', () => {
+  describe('Progress Alert', () => {
+    it('should render auto-compact threshold when progress is provided', async () => {
       const alert: Alert = {
         type: AlertType.Info,
         message: 'Context window',
@@ -86,53 +86,11 @@ describe('AlertBox', () => {
 
       renderWithIntl(<AlertBox alert={alert} />);
 
-      expect(screen.getByText('50')).toBeInTheDocument();
-      expect(screen.getByText('50%')).toBeInTheDocument();
-      expect(screen.getByText('100')).toBeInTheDocument();
-
-      // Check progress bar exists
-      const progressDots = screen
-        .getByText('Context window')
-        .parentElement?.parentElement?.querySelectorAll('.h-\\[2px\\]');
-      expect(progressDots).toBeDefined();
+      // Should show auto-compact threshold (default 80%)
+      expect(await screen.findByText(/Auto compact at 80%/)).toBeInTheDocument();
     });
 
-    it('should handle zero current value', () => {
-      const alert: Alert = {
-        type: AlertType.Info,
-        message: 'Context window',
-        progress: {
-          current: 0,
-          total: 100,
-        },
-      };
-
-      renderWithIntl(<AlertBox alert={alert} />);
-
-      expect(screen.getByText('0')).toBeInTheDocument();
-      expect(screen.getByText('0%')).toBeInTheDocument();
-      expect(screen.getByText('100')).toBeInTheDocument();
-    });
-
-    it('should handle 100% progress', () => {
-      const alert: Alert = {
-        type: AlertType.Info,
-        message: 'Context window',
-        progress: {
-          current: 100,
-          total: 100,
-        },
-      };
-
-      renderWithIntl(<AlertBox alert={alert} />);
-
-      // Use getAllByText since there are multiple "100" elements (current and total)
-      const hundredElements = screen.getAllByText('100');
-      expect(hundredElements).toHaveLength(2); // One for current, one for total
-      expect(screen.getByText('100%')).toBeInTheDocument();
-    });
-
-    it('should format large numbers with k suffix', () => {
+    it('should not render progress dots or token counts', () => {
       const alert: Alert = {
         type: AlertType.Info,
         message: 'Context window',
@@ -142,28 +100,14 @@ describe('AlertBox', () => {
         },
       };
 
-      renderWithIntl(<AlertBox alert={alert} />);
+      const { container } = renderWithIntl(<AlertBox alert={alert} />);
 
-      expect(screen.getByText('1.5k')).toBeInTheDocument();
-      expect(screen.getByText('15%')).toBeInTheDocument();
-      expect(screen.getByText('10k')).toBeInTheDocument();
-    });
-
-    it('should handle progress over 100%', () => {
-      const alert: Alert = {
-        type: AlertType.Warning,
-        message: 'Context window',
-        progress: {
-          current: 150,
-          total: 100,
-        },
-      };
-
-      renderWithIntl(<AlertBox alert={alert} />);
-
-      expect(screen.getByText('150')).toBeInTheDocument();
-      expect(screen.getByText('150%')).toBeInTheDocument();
-      expect(screen.getByText('100')).toBeInTheDocument();
+      // Progress dots and token counts are no longer rendered
+      expect(screen.queryByText('1.5k')).not.toBeInTheDocument();
+      expect(screen.queryByText('10k')).not.toBeInTheDocument();
+      expect(screen.queryByText('15%')).not.toBeInTheDocument();
+      const progressDots = container.querySelectorAll('.h-\\[2px\\]');
+      expect(progressDots.length).toBe(0);
     });
   });
 
@@ -272,7 +216,7 @@ describe('AlertBox', () => {
   });
 
   describe('Combined Features', () => {
-    it('should render progress bar and compact button together', () => {
+    it('should render threshold settings and compact button together', async () => {
       const alert: Alert = {
         type: AlertType.Info,
         message: 'Context window',
@@ -286,9 +230,7 @@ describe('AlertBox', () => {
 
       renderWithIntl(<AlertBox alert={alert} />);
 
-      expect(screen.getByText('75')).toBeInTheDocument();
-      expect(screen.getByText('75%')).toBeInTheDocument();
-      expect(screen.getByText('100')).toBeInTheDocument();
+      expect(await screen.findByText(/Auto compact at 80%/)).toBeInTheDocument();
       expect(screen.getByText('Compact now')).toBeInTheDocument();
     });
 
@@ -300,7 +242,6 @@ describe('AlertBox', () => {
 
       renderWithIntl(<AlertBox alert={alert} />);
 
-      // Use a function matcher to handle the whitespace-pre-line rendering
       expect(
         screen.getByText(
           (content) =>
@@ -319,12 +260,11 @@ describe('AlertBox', () => {
 
       const { container } = renderWithIntl(<AlertBox alert={alert} />);
 
-      // Should still render the alert container
       const alertElement = container.querySelector('.flex.flex-col.gap-2');
       expect(alertElement).toBeInTheDocument();
     });
 
-    it('should handle progress with zero total', () => {
+    it('should handle progress with zero total gracefully', async () => {
       const alert: Alert = {
         type: AlertType.Info,
         message: 'Context window',
@@ -336,10 +276,8 @@ describe('AlertBox', () => {
 
       renderWithIntl(<AlertBox alert={alert} />);
 
-      expect(screen.getByText('10')).toBeInTheDocument();
-      expect(screen.getByText('0')).toBeInTheDocument();
-      // Progress percentage would be Infinity, but it should still render
-      expect(screen.getByText('Infinity%')).toBeInTheDocument();
+      // Should still render threshold settings
+      expect(await screen.findByText(/Auto compact at 80%/)).toBeInTheDocument();
     });
   });
 });
diff --git a/ui/desktop/src/components/bottom_menu/BottomMenuAlertPopover.tsx b/ui/desktop/src/components/bottom_menu/BottomMenuAlertPopover.tsx
index 95cf5a0b..9e0b3dc6 100644
--- a/ui/desktop/src/components/bottom_menu/BottomMenuAlertPopover.tsx
+++ b/ui/desktop/src/components/bottom_menu/BottomMenuAlertPopover.tsx
@@ -1,5 +1,5 @@
 import { AppEvents } from '../../constants/events';
-import { useRef, useEffect, useCallback, useState } from 'react';
+import React, { useRef, useEffect, useCallback, useState } from 'react';
 import { FaCircle } from 'react-icons/fa';
 import { isEqual } from 'lodash';
 import { cn } from '../../utils';
@@ -8,9 +8,10 @@ import { AlertBox } from '../alerts';
 
 interface AlertPopoverProps {
   alerts: Alert[];
+  children?: React.ReactNode;
 }
 
-export default function BottomMenuAlertPopover({ alerts }: AlertPopoverProps) {
+export default function BottomMenuAlertPopover({ alerts, children }: AlertPopoverProps) {
   const [isOpen, setIsOpen] = useState(false);
   const [isHovered, setIsHovered] = useState(false);
   const [wasAutoShown, setWasAutoShown] = useState(false);
@@ -187,7 +188,7 @@ export default function BottomMenuAlertPopover({ alerts }: AlertPopoverProps) {
   }, [isOpen]);
 
   // Use shouldShowIndicator instead of alerts.length for rendering decision
-  if (!shouldShowIndicator) {
+  if (!shouldShowIndicator && !children) {
     return null;
   }
 
@@ -204,17 +205,20 @@ export default function BottomMenuAlertPopover({ alerts }: AlertPopoverProps) {
     <>
       <div className="relative">
         <button
+          type="button"
           ref={triggerRef}
-          className="cursor-pointer flex items-center justify-center min-w-5 min-h-5 rounded hover:bg-background-secondary"
+          className="cursor-pointer flex items-center gap-1.5 min-h-5 rounded hover:bg-background-secondary px-1"
           onClick={() => {
-            setIsOpen(true);
+            if (alerts.length > 0) setIsOpen(true);
           }}
           onMouseEnter={() => {
-            setIsOpen(true);
-            setIsHovered(true);
-            setWasAutoShown(false);
-            if (hideTimerRef.current) {
-              clearTimeout(hideTimerRef.current);
+            if (alerts.length > 0) {
+              setIsOpen(true);
+              setIsHovered(true);
+              setWasAutoShown(false);
+              if (hideTimerRef.current) {
+                clearTimeout(hideTimerRef.current);
+              }
             }
           }}
           onMouseLeave={() => {
@@ -227,9 +231,12 @@ export default function BottomMenuAlertPopover({ alerts }: AlertPopoverProps) {
             }, 100);
           }}
         >
-          <div className={cn('relative', triggerColor)}>
-            <FaCircle size={5} />
-          </div>
+          {shouldShowIndicator && (
+            <div className={cn('relative', triggerColor)}>
+              <FaCircle size={5} />
+            </div>
+          )}
+          {children}
         </button>
       </div>
 
diff --git a/ui/desktop/src/components/bottom_menu/ContextWindowIndicator.tsx b/ui/desktop/src/components/bottom_menu/ContextWindowIndicator.tsx
new file mode 100644
index 00000000..1e74de09
--- /dev/null
+++ b/ui/desktop/src/components/bottom_menu/ContextWindowIndicator.tsx
@@ -0,0 +1,49 @@
+import BottomMenuAlertPopover from './BottomMenuAlertPopover';
+import { Alert } from '../alerts';
+
+interface ContextWindowIndicatorProps {
+  totalTokens: number;
+  tokenLimit: number;
+  alerts: Alert[];
+}
+
+const formatTokenCount = (count: number): string => {
+  if (count >= 1000000) {
+    const millions = count / 1000000;
+    return millions % 1 === 0 ? `${millions.toFixed(0)}M` : `${millions.toFixed(1)}M`;
+  } else if (count >= 1000) {
+    const thousands = count / 1000;
+    return thousands % 1 === 0 ? `${thousands.toFixed(0)}k` : `${thousands.toFixed(1)}k`;
+  }
+  return count.toString();
+};
+
+const getProgressColor = (percentage: number): string => {
+  if (percentage <= 75) return 'text-text-primary/70';
+  if (percentage <= 90) return 'text-orange-500';
+  return 'text-red-500';
+};
+
+export function ContextWindowIndicator({
+  totalTokens,
+  tokenLimit,
+  alerts,
+}: ContextWindowIndicatorProps) {
+  if (!tokenLimit) return null;
+
+  const percentage = Math.round((totalTokens / tokenLimit) * 100);
+  const colorClass = getProgressColor(percentage);
+
+  return (
+    <>
+      <div className="flex items-center h-full">
+        <BottomMenuAlertPopover alerts={alerts}>
+          <span className={`text-xs font-mono ${colorClass}`}>
+            {formatTokenCount(totalTokens)} / {formatTokenCount(tokenLimit)}
+          </span>
+        </BottomMenuAlertPopover>
+      </div>
+      <div className="w-px h-4 bg-border-primary mx-2" />
+    </>
+  );
+}
diff --git a/ui/desktop/src/components/settings/models/bottom_bar/ModelsBottomBar.tsx b/ui/desktop/src/components/settings/models/bottom_bar/ModelsBottomBar.tsx
index 959eba07..e818c64e 100644
--- a/ui/desktop/src/components/settings/models/bottom_bar/ModelsBottomBar.tsx
+++ b/ui/desktop/src/components/settings/models/bottom_bar/ModelsBottomBar.tsx
@@ -12,8 +12,7 @@ import {
 import { useConfig } from '../../../ConfigContext';
 import { getProviderMetadata } from '../modelInterface';
 import { getModelDisplayName } from '../predefinedModelsUtils';
-import { Alert } from '../../../alerts';
-import BottomMenuAlertPopover from '../../../bottom_menu/BottomMenuAlertPopover';
+
 import { ModelSettingsPanel } from '../../localInference/ModelSettingsPanel';
 import { ScrollArea } from '../../../ui/scroll-area';
 import { defineMessages, useIntl } from '../../../../i18n';
@@ -45,7 +44,6 @@ interface ModelsBottomBarProps {
   sessionId: string | null;
   dropdownRef: React.RefObject<HTMLDivElement>;
   setView: (view: View) => void;
-  alerts: Alert[];
   sessionModel?: string | null;
   sessionProvider?: string | null;
   onModelChanged: (override: { model: string; provider: string }) => void;
@@ -56,7 +54,6 @@ export default function ModelsBottomBar({
   sessionId,
   dropdownRef,
   setView,
-  alerts,
   sessionModel,
   sessionProvider,
   onModelChanged,
@@ -120,7 +117,6 @@ export default function ModelsBottomBar({
 
   return (
     <div className="relative flex items-center" ref={dropdownRef}>
-      <BottomMenuAlertPopover alerts={alerts} />
       <DropdownMenu>
         <DropdownMenuTrigger className="flex items-center hover:cursor-pointer max-w-[180px] md:max-w-[200px] lg:max-w-[380px] min-w-0 text-text-primary/70 hover:text-text-primary transition-colors">
           <div className="flex items-center truncate max-w-[130px] md:max-w-[200px] lg:max-w-[360px] min-w-0">