diff --git a/desktop/src/features/agents/ui/AgentSessionToolItem.tsx b/desktop/src/features/agents/ui/AgentSessionToolItem.tsx
index 9fc4b11110..683896cfd4 100644
--- a/desktop/src/features/agents/ui/AgentSessionToolItem.tsx
+++ b/desktop/src/features/agents/ui/AgentSessionToolItem.tsx
@@ -11,9 +11,11 @@ import { asRecord, formatCodeValue, formatDuration } from "./agentSessionUtils";
 
 export function ToolItem({
   compact = false,
+  grouped = false,
   item,
 }: {
   compact?: boolean;
+  grouped?: boolean;
   item: Extract<TranscriptItem, { type: "tool" }>;
 }) {
   const [isExpanded, setIsExpanded] = React.useState(false);
@@ -32,7 +34,11 @@ export function ToolItem({
 
   return (
     <div
-      className={cn("not-prose w-full", compact ? "px-0" : "px-1")}
+      className={cn(
+        "not-prose w-full",
+        compact ? "px-0" : "px-1",
+        grouped ? "py-0" : compact ? "py-0.5" : "py-0.5",
+      )}
       data-testid="transcript-tool-item"
     >
       <details
@@ -42,7 +48,7 @@ export function ToolItem({
       >
         <summary
           className={cn(
-            "inline-flex max-w-full cursor-pointer list-none items-center gap-5 py-px",
+            "inline-flex max-w-full cursor-pointer list-none items-center gap-1.5 py-px",
             compactSummaryTone(),
           )}
         >
diff --git a/desktop/src/features/agents/ui/AgentSessionTranscriptList.tsx b/desktop/src/features/agents/ui/AgentSessionTranscriptList.tsx
index dcd3fa9a12..cb4abf84fc 100644
--- a/desktop/src/features/agents/ui/AgentSessionTranscriptList.tsx
+++ b/desktop/src/features/agents/ui/AgentSessionTranscriptList.tsx
@@ -155,6 +155,14 @@ function TranscriptDisplayBlockView({
   profiles?: UserProfileLookup;
 }) {
   if (block.kind === "single") {
+    if (block.item.type === "tool") {
+      return (
+        <div className={cn("first:mt-0", compact ? "mt-3" : "mt-3.5")}>
+          <ToolCallGroup compact={compact} items={[block.item]} />
+        </div>
+      );
+    }
+
     return (
       <TranscriptItemRow
         agentAvatarUrl={agentAvatarUrl}
@@ -169,25 +177,51 @@ function TranscriptDisplayBlockView({
 
   return (
     <div
-      className={cn("first:mt-0", compact ? "mt-2.5" : "mt-4")}
+      className={cn("first:mt-0", compact ? "mt-2.5" : "mt-3.5")}
       data-testid="transcript-turn-group"
       data-turn-id={block.turnId}
     >
-      {block.segments.map((segment) => (
-        <TranscriptTurnSegmentView
-          agentAvatarUrl={agentAvatarUrl}
-          agentName={agentName}
-          agentPubkey={agentPubkey}
-          compact={compact}
+      {block.segments.map((segment, index) => (
+        <div
+          className={getTurnSegmentSpacing(
+            block.segments[index - 1],
+            segment,
+            compact,
+          )}
           key={getTurnSegmentKey(block.turnId, segment)}
-          profiles={profiles}
-          segment={segment}
-        />
+        >
+          <TranscriptTurnSegmentView
+            agentAvatarUrl={agentAvatarUrl}
+            agentName={agentName}
+            agentPubkey={agentPubkey}
+            compact={compact}
+            profiles={profiles}
+            segment={segment}
+          />
+        </div>
       ))}
     </div>
   );
 }
 
+function getTurnSegmentSpacing(
+  previous: TranscriptTurnSegment | undefined,
+  segment: TranscriptTurnSegment,
+  compact: boolean,
+): string | undefined {
+  if (!previous) {
+    return undefined;
+  }
+
+  const involvesTool =
+    previous.kind === "tool_group" || segment.kind === "tool_group";
+  if (involvesTool) {
+    return compact ? "mt-3" : "mt-3.5";
+  }
+
+  return compact ? "mt-2" : "mt-2.5";
+}
+
 function getTurnSegmentKey(turnId: string, segment: TranscriptTurnSegment) {
   if (segment.kind === "setup") {
     return `turn:${turnId}:setup`;
@@ -195,6 +229,9 @@ function getTurnSegmentKey(turnId: string, segment: TranscriptTurnSegment) {
   if (segment.kind === "prompt") {
     return `turn:${turnId}:prompt`;
   }
+  if (segment.kind === "tool_group") {
+    return `turn:${turnId}:tools:${segment.items.map((item) => item.id).join("+")}`;
+  }
   return segment.item.id;
 }
 
@@ -226,12 +263,17 @@ function TranscriptTurnSegmentView({
     return <TurnSetupStatus compact={compact} items={segment.items} />;
   }
 
+  if (segment.kind === "tool_group") {
+    return <ToolCallGroup compact={compact} items={segment.items} />;
+  }
+
   return (
     <TranscriptItemRow
       agentAvatarUrl={agentAvatarUrl}
       agentName={agentName}
       agentPubkey={agentPubkey}
       compact={compact}
+      embedded
       item={segment.item}
       profiles={profiles}
     />
@@ -252,10 +294,7 @@ function TurnPromptBlock({
   user: Extract<TranscriptItem, { type: "message" }>;
 }) {
   return (
-    <div
-      className={cn("first:mt-0", compact ? "mt-2.5" : "mt-4")}
-      data-testid="transcript-prompt-bundle"
-    >
+    <div data-testid="transcript-prompt-bundle">
       {SHOW_TRANSCRIPT_ACP_SOURCE ? (
         <div className="mb-1 flex flex-wrap gap-1">
           <TranscriptAcpSourceBadge source="session/prompt:user" />
@@ -464,24 +503,42 @@ function TurnSetupFooter({
   );
 }
 
+function ToolCallGroup({
+  compact,
+  items,
+}: {
+  compact: boolean;
+  items: Extract<TranscriptItem, { type: "tool" }>[];
+}) {
+  return (
+    <div className="flex flex-col gap-0" data-testid="transcript-tool-group">
+      {items.map((item) => (
+        <ToolItem compact={compact} grouped key={item.id} item={item} />
+      ))}
+    </div>
+  );
+}
+
 function TranscriptItemRow({
   agentAvatarUrl,
   agentName,
   agentPubkey,
   compact,
+  embedded = false,
   item,
   profiles,
 }: AgentTranscriptIdentityProps & {
   compact: boolean;
+  embedded?: boolean;
   item: TranscriptItem;
   profiles?: UserProfileLookup;
 }) {
   return (
     <div
       className={cn(
-        "first:mt-0",
-        compact ? "mt-2.5" : "mt-4",
-        getItemSpacingClass(item),
+        !embedded && "first:mt-0",
+        !embedded && (compact ? "mt-2" : "mt-2.5"),
+        !embedded && getItemSpacingClass(item),
       )}
       key={item.id}
     >
@@ -513,7 +570,7 @@ function TurnSetupStatus({
   }
 
   return (
-    <div className={cn("rounded-md px-2 py-1.5", compact ? "mt-2" : "mt-2.5")}>
+    <div className={cn("rounded-md px-2 py-1.5", compact ? "mt-1.5" : "mt-2")}>
       <TurnSetupFooter items={items} timestamp={timestamp} />
     </div>
   );
@@ -521,10 +578,10 @@ function TurnSetupStatus({
 
 function getItemSpacingClass(item: TranscriptItem) {
   if (item.type === "lifecycle") {
-    return "mt-2 first:mt-0";
+    return "mt-1.5 first:mt-0";
   }
   if (item.type === "metadata" || item.type === "thought") {
-    return "mt-2 first:mt-0";
+    return "mt-1.5 first:mt-0";
   }
   return undefined;
 }
@@ -603,7 +660,13 @@ function MessageItem({
       className={cn(
         "flex animate-in fade-in duration-200 motion-reduce:animate-none",
         isAssistant ? "flex-row" : "flex-row items-start justify-end",
-        compact ? "px-0 py-0.5" : "px-1 py-1",
+        isAssistant
+          ? compact
+            ? "px-0 py-0"
+            : "px-1 py-0"
+          : compact
+            ? "px-0 py-0.5"
+            : "px-1 py-1",
       )}
       data-role={isAssistant ? "assistant-message" : "user-message"}
       data-testid={
diff --git a/desktop/src/features/agents/ui/agentSessionToolSummary.test.mjs b/desktop/src/features/agents/ui/agentSessionToolSummary.test.mjs
index d24100ffc1..7b416eb594 100644
--- a/desktop/src/features/agents/ui/agentSessionToolSummary.test.mjs
+++ b/desktop/src/features/agents/ui/agentSessionToolSummary.test.mjs
@@ -1,10 +1,7 @@
 import assert from "node:assert/strict";
 import test from "node:test";
 
-import {
-  buildCompactToolSummary,
-  isCompactDeveloperTool,
-} from "./agentSessionToolSummary.ts";
+import { buildCompactToolSummary } from "./agentSessionToolSummary.ts";
 
 const baseTimestamp = "2026-06-14T19:00:00.000Z";
 
@@ -26,29 +23,19 @@ function makeTool(overrides = {}) {
   };
 }
 
-test("isCompactDeveloperTool returns false for Buzz relay tools", () => {
-  assert.equal(
-    isCompactDeveloperTool(
-      makeTool({
-        toolName: "send_message",
-        buzzToolName: "send_message",
-        title: "Send Message",
-      }),
-    ),
-    false,
+test("buildCompactToolSummary formats Buzz send_message preview", () => {
+  const summary = buildCompactToolSummary(
+    makeTool({
+      toolName: "send_message",
+      buzzToolName: "send_message",
+      title: "Send Message",
+      args: { content: "Hello team" },
+    }),
   );
-});
 
-test("isCompactDeveloperTool detects buzz-dev-mcp shell tools", () => {
-  assert.equal(
-    isCompactDeveloperTool(
-      makeTool({
-        toolName: "buzz-dev-mcp__shell",
-        title: "buzz-dev-mcp__shell",
-      }),
-    ),
-    true,
-  );
+  assert.equal(summary.kind, "buzz");
+  assert.equal(summary.label, "Send Message");
+  assert.equal(summary.preview, "Hello team");
 });
 
 test("buildCompactToolSummary formats shell command preview", () => {
diff --git a/desktop/src/features/agents/ui/agentSessionToolSummary.ts b/desktop/src/features/agents/ui/agentSessionToolSummary.ts
index 70aaccbbff..96b0244691 100644
--- a/desktop/src/features/agents/ui/agentSessionToolSummary.ts
+++ b/desktop/src/features/agents/ui/agentSessionToolSummary.ts
@@ -1,9 +1,15 @@
 import type { ToolStatus, TranscriptItem } from "./agentSessionTypes";
 import {
+  formatToolTitle,
   getBuzzToolInfo,
+  isGenericToolTitle,
   normalizeToolNameText,
 } from "./agentSessionToolCatalog";
-import { asRecord, getToolString } from "./agentSessionUtils";
+import {
+  asRecord,
+  getToolString,
+  getToolStringList,
+} from "./agentSessionUtils";
 
 export type CompactToolKind =
   | "shell"
@@ -13,7 +19,9 @@ export type CompactToolKind =
   | "todo"
   | "stop_hook"
   | "post_compact_hook"
-  | "dev_mcp";
+  | "dev_mcp"
+  | "buzz"
+  | "generic";
 
 export type CompactToolSummary = {
   kind: CompactToolKind;
@@ -35,26 +43,33 @@ const DEVELOPER_TOOL_BASES = new Set([
 
 type ToolItem = Extract<TranscriptItem, { type: "tool" }>;
 
-/** Whether this tool row should use the muted compact developer summary. */
-export function isCompactDeveloperTool(item: ToolItem): boolean {
-  if (item.buzzToolName && getBuzzToolInfo(item.buzzToolName)) {
-    return false;
-  }
-  return resolveDeveloperToolKind(item) !== null;
-}
-
-/** Build the compact summary label and preview for developer MCP tool rows. */
+/** Build the muted compact summary label and preview for any tool row. */
 export function buildCompactToolSummary(item: ToolItem): CompactToolSummary {
-  const kind = resolveDeveloperToolKind(item) ?? "dev_mcp";
+  const kind = resolveCompactToolKind(item);
   const { preview, thumbnailSrc } = extractCompactToolPreview(item, kind);
   return {
     kind,
-    label: compactToolLabel(kind, item.status, item.isError),
+    label: compactToolLabel(kind, item, item.status, item.isError),
     preview,
     thumbnailSrc,
   };
 }
 
+function resolveCompactToolKind(item: ToolItem): CompactToolKind {
+  const developerKind = resolveDeveloperToolKind(item);
+  if (developerKind) {
+    return developerKind;
+  }
+
+  for (const value of [item.buzzToolName, item.toolName, item.title]) {
+    if (value && getBuzzToolInfo(value)) {
+      return "buzz";
+    }
+  }
+
+  return "generic";
+}
+
 function resolveDeveloperToolKind(item: ToolItem): CompactToolKind | null {
   for (const value of [item.toolName, item.title, item.buzzToolName]) {
     const kind = classifyDeveloperToolName(value);
@@ -98,16 +113,51 @@ function stripMcpServerPrefix(normalized: string): string {
 
 function compactToolLabel(
   kind: CompactToolKind,
+  item: ToolItem,
   status: ToolStatus,
   isError: boolean,
 ): string {
   const failed = isError || status === "failed";
   const running = status === "executing" || status === "pending";
 
+  if (kind === "buzz") {
+    const title = formatToolTitle(
+      item.buzzToolName ?? item.toolName,
+      item.title,
+    );
+    if (failed) return `${title} failed`;
+    if (running) return title;
+    return title;
+  }
+
   const labels: Record<
     CompactToolKind,
     { completed: string; running: string; failed: string }
   > = {
+    generic: {
+      completed: "Ran tool",
+      running: "Running tool",
+      failed: "Tool failed",
+    },
+    ...developerToolLabels(),
+  };
+
+  const labelsMap = labels as Record<
+    CompactToolKind,
+    { completed: string; running: string; failed: string }
+  >;
+
+  const set = labelsMap[kind];
+  if (failed) return set.failed;
+  if (running) return set.running;
+  return set.completed;
+}
+
+function developerToolLabels(): Record<
+  Exclude<CompactToolKind, "buzz" | "generic">,
+  { completed: string; running: string; failed: string }
+> {
+  return {
     shell: {
       completed: "Ran command",
       running: "Running command",
@@ -149,11 +199,6 @@ function compactToolLabel(
       failed: "Tool failed",
     },
   };
-
-  const set = labels[kind];
-  if (failed) return set.failed;
-  if (running) return set.running;
-  return set.completed;
 }
 
 type CompactToolPreview = {
@@ -181,13 +226,56 @@ function extractCompactToolPreview(
     case "post_compact_hook":
       return emptyPreview();
     case "dev_mcp":
+    case "generic":
       return textPreview(
-        getToolString(args, ["command", "path", "source", "query", "name"]) ??
-          null,
+        getToolString(args, [
+          "command",
+          "path",
+          "source",
+          "query",
+          "name",
+          "content",
+          "message",
+        ]) ??
+          (item.title && !isGenericToolTitle(item.title) ? item.title : null),
       );
+    case "buzz":
+      return textPreview(extractBuzzToolPreview(args));
   }
 }
 
+function extractBuzzToolPreview(args: Record<string, unknown>): string | null {
+  const content = getToolString(args, ["content", "message", "text", "body"]);
+  if (content) {
+    return content;
+  }
+
+  const query = getToolString(args, ["query", "search"]);
+  if (query) {
+    return query;
+  }
+
+  const channelId = getToolString(args, ["channel_id", "channelId"]);
+  if (channelId) {
+    return channelId;
+  }
+
+  const workflowId = getToolString(args, ["workflow_id", "workflowId"]);
+  if (workflowId) {
+    return workflowId;
+  }
+
+  const pubkeys = getToolStringList(args, ["pubkeys", "pubkey"]);
+  if (pubkeys.length === 1) {
+    return pubkeys[0];
+  }
+  if (pubkeys.length > 1) {
+    return `${pubkeys.length} users`;
+  }
+
+  return getToolString(args, ["event_id", "eventId", "name"]);
+}
+
 function textPreview(preview: string | null): CompactToolPreview {
   return { preview, thumbnailSrc: null };
 }
diff --git a/desktop/src/features/agents/ui/agentSessionTranscriptGrouping.test.mjs b/desktop/src/features/agents/ui/agentSessionTranscriptGrouping.test.mjs
index 83f1fb534d..07ba3b2e52 100644
--- a/desktop/src/features/agents/ui/agentSessionTranscriptGrouping.test.mjs
+++ b/desktop/src/features/agents/ui/agentSessionTranscriptGrouping.test.mjs
@@ -124,6 +124,32 @@ test("buildTranscriptDisplayBlocks bundles user prompt, setup, and context toget
   assert.equal(promptSegment.context?.id, "context");
   assert.equal(promptSegment.setup.length, 2);
   assert.equal(turnBlock.segments[1]?.kind, "item");
+  assert.equal(turnBlock.segments[2]?.kind, "tool_group");
+});
+
+test("buildTranscriptDisplayBlocks groups consecutive tool calls", () => {
+  const rawItems = [
+    userPrompt("prompt", "run these", "turn-1"),
+    toolCall("tool-1", "turn-1"),
+    toolCall("tool-2", "turn-1"),
+    assistantMessage("assistant", "Done.", "turn-1"),
+    toolCall("tool-3", "turn-1"),
+  ];
+
+  const blocks = buildTranscriptDisplayBlocks(rawItems);
+  const turnBlock = blocks[0];
+  assert.equal(turnBlock?.kind, "turn");
+  assert.equal(turnBlock.segments[1]?.kind, "tool_group");
+  assert.deepEqual(
+    turnBlock.segments[1]?.items?.map((item) => item.id),
+    ["tool-1", "tool-2"],
+  );
+  assert.equal(turnBlock.segments[2]?.kind, "item");
+  assert.equal(turnBlock.segments[3]?.kind, "tool_group");
+  assert.deepEqual(
+    turnBlock.segments[3]?.items?.map((item) => item.id),
+    ["tool-3"],
+  );
 });
 
 test("buildTranscriptDisplayBlocks collapses setup lifecycle inside prompt bundle", () => {
@@ -146,23 +172,25 @@ test("buildTranscriptDisplayBlocks collapses setup lifecycle inside prompt bundl
   );
 });
 
-test("buildTranscriptDisplayBlocks hides setup lifecycle when prompt is missing", () => {
+test("buildTranscriptDisplayBlocks hides setup and context when prompt is missing", () => {
   const rawItems = [
     lifecycle("turn", "Turn started", "turn_started", "turn-1"),
     lifecycle("session", "Session ready", "session_resolved", "turn-1"),
     promptContext("context", "turn-1"),
+    toolCall("tool", "turn-1"),
   ];
 
   const blocks = buildTranscriptDisplayBlocks(rawItems);
   const displayOrder = flattenDisplayBlocks(blocks).map((item) => item.id);
 
-  assert.deepEqual(displayOrder, ["context"]);
+  assert.deepEqual(displayOrder, ["tool"]);
 });
 
-test("buildTranscriptDisplayBlocks drops setup-only turns", () => {
+test("buildTranscriptDisplayBlocks drops setup-and-context-only turns", () => {
   const rawItems = [
     lifecycle("turn", "Turn started", "turn_started", "turn-1"),
     lifecycle("session", "Session ready", "session_resolved", "turn-1"),
+    promptContext("context", "turn-1"),
   ];
 
   const blocks = buildTranscriptDisplayBlocks(rawItems);
diff --git a/desktop/src/features/agents/ui/agentSessionTranscriptGrouping.ts b/desktop/src/features/agents/ui/agentSessionTranscriptGrouping.ts
index 74fa75e5cd..3a840e22f1 100644
--- a/desktop/src/features/agents/ui/agentSessionTranscriptGrouping.ts
+++ b/desktop/src/features/agents/ui/agentSessionTranscriptGrouping.ts
@@ -2,6 +2,7 @@ import type { TranscriptItem } from "./agentSessionTypes";
 
 export type TranscriptTurnSegment =
   | { kind: "item"; item: TranscriptItem }
+  | { kind: "tool_group"; items: Extract<TranscriptItem, { type: "tool" }>[] }
   | { kind: "setup"; items: Extract<TranscriptItem, { type: "lifecycle" }>[] }
   | {
       kind: "prompt";
@@ -62,12 +63,14 @@ function classifyTurnItems(items: TranscriptItem[]): TranscriptTurnSegment[] {
 
   if (userPrompt) consumed.add(userPrompt);
   for (const item of setupLifecycle) consumed.add(item);
-  if (userPrompt && promptContext) consumed.add(promptContext);
+  if (promptContext) consumed.add(promptContext);
 
   const activity = items.filter((item) => !consumed.has(item));
 
   if (!userPrompt) {
-    return activity.map((item) => ({ kind: "item", item }));
+    return groupConsecutiveToolSegments(
+      activity.map((item) => ({ kind: "item", item })),
+    );
   }
 
   const segments: TranscriptTurnSegment[] = [
@@ -90,7 +93,34 @@ function classifyTurnItems(items: TranscriptItem[]): TranscriptTurnSegment[] {
     segments.push({ kind: "item", item });
   }
 
-  return segments;
+  return groupConsecutiveToolSegments(segments);
+}
+
+function groupConsecutiveToolSegments(
+  segments: TranscriptTurnSegment[],
+): TranscriptTurnSegment[] {
+  const grouped: TranscriptTurnSegment[] = [];
+  let toolBuffer: Extract<TranscriptItem, { type: "tool" }>[] = [];
+
+  const flushTools = () => {
+    if (toolBuffer.length === 0) {
+      return;
+    }
+    grouped.push({ kind: "tool_group", items: toolBuffer });
+    toolBuffer = [];
+  };
+
+  for (const segment of segments) {
+    if (segment.kind === "item" && segment.item.type === "tool") {
+      toolBuffer.push(segment.item);
+      continue;
+    }
+    flushTools();
+    grouped.push(segment);
+  }
+
+  flushTools();
+  return grouped;
 }
 
 /**
@@ -162,6 +192,8 @@ export function flattenDisplayBlocks(
     for (const segment of block.segments) {
       if (segment.kind === "item") {
         result.push(segment.item);
+      } else if (segment.kind === "tool_group") {
+        result.push(...segment.items);
       } else if (segment.kind === "prompt") {
         result.push(segment.user);
         result.push(...segment.setup);
diff --git a/desktop/src/shared/ui/toggle.tsx b/desktop/src/shared/ui/toggle.tsx
index 939b2df16f..e6e9eac4fe 100644
--- a/desktop/src/shared/ui/toggle.tsx
+++ b/desktop/src/shared/ui/toggle.tsx
@@ -10,12 +10,14 @@ const toggleVariants = cva(
     variants: {
       variant: {
         default: "bg-transparent",
+        ghost:
+          "bg-transparent hover:bg-muted/70 hover:text-foreground data-[state=on]:bg-muted data-[state=on]:text-foreground",
         outline:
           "border border-input/40 bg-background hover:bg-muted/70 data-[state=on]:bg-muted data-[state=on]:text-foreground",
       },
       size: {
         default: "h-9 px-3 min-w-9",
-        xs: "h-5 min-h-0 min-w-0 gap-1 rounded-md px-1.5 text-xs font-medium",
+        xs: "h-5 min-h-0 min-w-0 gap-1 rounded-md px-1.5 text-xs font-medium [&_svg]:size-3.5",
         sm: "h-8 px-2 min-w-8",
         lg: "h-10 px-3 min-w-10",
       },