diff --git a/server/src/__tests__/issues-service.test.ts b/server/src/__tests__/issues-service.test.ts
index c8be8ff1ac4..6a116db2ffb 100644
--- a/server/src/__tests__/issues-service.test.ts
+++ b/server/src/__tests__/issues-service.test.ts
@@ -895,6 +895,66 @@ describeEmbeddedPostgres("issueService.list participantAgentId", () => {
     );
   });
 
+  it("includes blockedBy summaries on list rows in one batched pass", async () => {
+    const companyId = randomUUID();
+    const blockerId = randomUUID();
+    const blockedId = randomUUID();
+    const unblockedId = randomUUID();
+
+    await db.insert(companies).values({
+      id: companyId,
+      name: "Paperclip",
+      issuePrefix: `T${companyId.replace(/-/g, "").slice(0, 6).toUpperCase()}`,
+      requireBoardApprovalForNewAgents: false,
+    });
+
+    await db.insert(issues).values([
+      {
+        id: blockerId,
+        companyId,
+        title: "Blocker issue",
+        status: "todo",
+        priority: "high",
+      },
+      {
+        id: blockedId,
+        companyId,
+        title: "Blocked issue",
+        status: "blocked",
+        priority: "medium",
+      },
+      {
+        id: unblockedId,
+        companyId,
+        title: "Unblocked issue",
+        status: "todo",
+        priority: "medium",
+      },
+    ]);
+
+    await db.insert(issueRelations).values({
+      companyId,
+      issueId: blockerId,
+      relatedIssueId: blockedId,
+      type: "blocks",
+    });
+
+    const result = await svc.list(companyId);
+    const byId = new Map(result.map((issue) => [issue.id, issue]));
+
+    expect(byId.get(blockedId)?.blockedBy).toEqual([
+      expect.objectContaining({
+        id: blockerId,
+        identifier: null,
+        title: "Blocker issue",
+        status: "todo",
+        priority: "high",
+      }),
+    ]);
+    expect(byId.get(blockerId)?.blockedBy).toEqual([]);
+    expect(byId.get(unblockedId)?.blockedBy).toEqual([]);
+  });
+
   it("trims list payload fields that can grow large on issue index routes", async () => {
     const companyId = randomUUID();
     const issueId = randomUUID();
diff --git a/server/src/services/issues.ts b/server/src/services/issues.ts
index 01bd1d7c69b..d70977e579b 100644
--- a/server/src/services/issues.ts
+++ b/server/src/services/issues.ts
@@ -1296,6 +1296,62 @@ async function lastActivityStatsForIssues(
   return [...byIssueId.values()];
 }
 
+async function blockedByMapForIssues(
+  dbOrTx: any,
+  companyId: string,
+  issueIds: string[],
+): Promise<Map<string, IssueRelationIssueSummary[]>> {
+  const map = new Map<string, IssueRelationIssueSummary[]>();
+  const uniqueIssueIds = [...new Set(issueIds)];
+  for (const issueId of uniqueIssueIds) {
+    map.set(issueId, []);
+  }
+  if (uniqueIssueIds.length === 0) return map;
+
+  for (const issueIdChunk of chunkList(uniqueIssueIds, ISSUE_LIST_RELATED_QUERY_CHUNK_SIZE)) {
+    const rows = await dbOrTx
+      .select({
+        currentIssueId: issueRelations.relatedIssueId,
+        relatedId: issues.id,
+        identifier: issues.identifier,
+        title: issues.title,
+        status: issues.status,
+        priority: issues.priority,
+        assigneeAgentId: issues.assigneeAgentId,
+        assigneeUserId: issues.assigneeUserId,
+      })
+      .from(issueRelations)
+      .innerJoin(issues, eq(issueRelations.issueId, issues.id))
+      .where(
+        and(
+          eq(issueRelations.companyId, companyId),
+          eq(issueRelations.type, "blocks"),
+          inArray(issueRelations.relatedIssueId, issueIdChunk),
+        ),
+      );
+
+    for (const row of rows) {
+      const blockedBy = map.get(row.currentIssueId);
+      if (!blockedBy) continue;
+      blockedBy.push({
+        id: row.relatedId,
+        identifier: row.identifier,
+        title: row.title,
+        status: row.status as IssueRelationIssueSummary["status"],
+        priority: row.priority as IssueRelationIssueSummary["priority"],
+        assigneeAgentId: row.assigneeAgentId,
+        assigneeUserId: row.assigneeUserId,
+      });
+    }
+  }
+
+  for (const blockedBy of map.values()) {
+    blockedBy.sort((a, b) => a.title.localeCompare(b.title));
+  }
+
+  return map;
+}
+
 export function issueService(db: Db) {
   const instanceSettings = instanceSettingsService(db);
   const treeControlSvc = issueTreeControlService(db);
@@ -1914,7 +1970,7 @@ export function issueService(db: Db) {
       }
 
       const issueIds = withRuns.map((row) => row.id);
-      const [statsRows, readRows, lastActivityRows] = await Promise.all([
+      const [statsRows, readRows, lastActivityRows, blockedByMap] = await Promise.all([
         contextUserId
           ? userCommentStatsForIssues(db, companyId, contextUserId, issueIds)
           : Promise.resolve([]),
@@ -1922,6 +1978,7 @@ export function issueService(db: Db) {
           ? userReadStatsForIssues(db, companyId, contextUserId, issueIds)
           : Promise.resolve([]),
         lastActivityStatsForIssues(db, companyId, issueIds),
+        blockedByMapForIssues(db, companyId, issueIds),
       ]);
       const statsByIssueId = new Map(statsRows.map((row) => [row.issueId, row]));
       const lastActivityByIssueId = new Map(lastActivityRows.map((row) => [row.issueId, row]));
@@ -1937,6 +1994,7 @@ export function issueService(db: Db) {
           ) ?? row.updatedAt;
           return {
             ...row,
+            blockedBy: blockedByMap.get(row.id) ?? [],
             lastActivityAt,
             ...(blockerAttentionByIssueId.has(row.id) ? { blockerAttention: blockerAttentionByIssueId.get(row.id) } : {}),
           };
@@ -1954,6 +2012,7 @@ export function issueService(db: Db) {
         ) ?? row.updatedAt;
         return {
           ...row,
+          blockedBy: blockedByMap.get(row.id) ?? [],
           lastActivityAt,
           ...(blockerAttentionByIssueId.has(row.id) ? { blockerAttention: blockerAttentionByIssueId.get(row.id) } : {}),
           ...deriveIssueUserContext(row, contextUserId, {
diff --git a/ui/src/components/IssueRow.tsx b/ui/src/components/IssueRow.tsx
index f5da510b646..5dc015813f8 100644
--- a/ui/src/components/IssueRow.tsx
+++ b/ui/src/components/IssueRow.tsx
@@ -24,7 +24,7 @@ interface IssueRowProps {
   trailingMeta?: ReactNode;
   titleSuffix?: ReactNode;
   titleClassName?: string;
-  checklistStepNumber?: number | null;
+  checklistStepNumber?: number | string | null;
   checklistCurrentStep?: boolean;
   checklistDependencyChips?: ReactNode;
   checklistRowId?: string;
@@ -84,7 +84,7 @@ export function IssueRow({
     >
       {hasChecklistStep ? (
         <span
-          className="inline-block w-4 shrink-0 self-center text-right font-mono text-[10px] text-muted-foreground sm:w-8 sm:text-xs"
+          className="inline-block w-7 shrink-0 self-center text-right font-mono text-[10px] text-muted-foreground sm:w-10 sm:text-xs"
           aria-hidden="true"
         >
           {checklistStepNumber}.
diff --git a/ui/src/components/IssuesList.test.tsx b/ui/src/components/IssuesList.test.tsx
index 110784ec904..5d5daa86c51 100644
--- a/ui/src/components/IssuesList.test.tsx
+++ b/ui/src/components/IssuesList.test.tsx
@@ -101,7 +101,7 @@ vi.mock("./IssueRow", () => ({
     desktopMetaLeading?: ReactNode;
     desktopTrailing?: ReactNode;
     titleClassName?: string;
-    checklistStepNumber?: number | null;
+    checklistStepNumber?: number | string | null;
     checklistCurrentStep?: boolean;
     checklistDependencyChips?: ReactNode;
     checklistRowId?: string;
@@ -414,10 +414,17 @@ describe("IssuesList", () => {
       status: "blocked",
       createdAt: new Date("2026-04-03T00:00:00.000Z"),
     });
+    const cancelledIssue = createIssue({
+      id: "issue-cancelled",
+      identifier: "PAP-4",
+      title: "Cancelled follow-up",
+      status: "cancelled",
+      createdAt: new Date("2026-04-04T00:00:00.000Z"),
+    });
 
     const { root } = renderWithQueryClient(
       <IssuesList
-        issues={[blockedIssue, nextIssue, doneIssue]}
+        issues={[cancelledIssue, blockedIssue, nextIssue, doneIssue]}
         agents={[]}
         projects={[]}
         viewStateKey="paperclip:test-issues"
@@ -439,6 +446,7 @@ describe("IssuesList", () => {
       expect(container.textContent).toContain("Next up");
       const link = container.querySelector('a[href="/issues/PAP-2"]');
       expect(link?.textContent).toContain("Implement next slice");
+      expect(container.querySelector('[title="Cancelled: 1"]')).toBeNull();
     });
 
     act(() => {
@@ -497,6 +505,66 @@ describe("IssuesList", () => {
     });
   });
 
+  it("uses hierarchical checklist step numbers when nested rows render inline", async () => {
+    const firstRoot = createIssue({
+      id: "issue-first-root",
+      identifier: "PAP-1",
+      title: "First root",
+      status: "done",
+      createdAt: new Date("2026-04-01T00:00:00.000Z"),
+    });
+    const parent = createIssue({
+      id: "issue-parent",
+      identifier: "PAP-2",
+      title: "Parent slice",
+      status: "todo",
+      createdAt: new Date("2026-04-02T00:00:00.000Z"),
+    });
+    const nextRoot = createIssue({
+      id: "issue-next-root",
+      identifier: "PAP-3",
+      title: "Next root",
+      status: "todo",
+      createdAt: new Date("2026-04-03T00:00:00.000Z"),
+    });
+    const grandchild = createIssue({
+      id: "issue-grandchild",
+      identifier: "PAP-4",
+      title: "Nested cancelled cleanup",
+      status: "cancelled",
+      parentId: "issue-parent",
+      createdAt: new Date("2026-04-04T00:00:00.000Z"),
+    });
+
+    const { root } = renderWithQueryClient(
+      <IssuesList
+        issues={[grandchild, nextRoot, firstRoot, parent]}
+        agents={[]}
+        projects={[]}
+        viewStateKey="paperclip:test-issues"
+        defaultSortField="workflow"
+        onUpdateIssue={() => undefined}
+      />,
+      container,
+    );
+
+    await waitForAssertion(() => {
+      const rows = Array.from(container.querySelectorAll('[data-testid="issue-row"]'));
+      expect(rows).toHaveLength(4);
+      expect(rows.map((row) => row.textContent)).toEqual([
+        expect.stringContaining("First root"),
+        expect.stringContaining("Parent slice"),
+        expect.stringContaining("Nested cancelled cleanup"),
+        expect.stringContaining("Next root"),
+      ]);
+      expect(rows.map((row) => row.getAttribute("data-step"))).toEqual(["1", "2", "2.1", "3"]);
+    });
+
+    act(() => {
+      root.unmount();
+    });
+  });
+
   it("hides the sub-issue progress summary unless it is enabled and populated", async () => {
     const { root } = renderWithQueryClient(
       <IssuesList
diff --git a/ui/src/components/IssuesList.tsx b/ui/src/components/IssuesList.tsx
index b3b20749f48..dde72802620 100644
--- a/ui/src/components/IssuesList.tsx
+++ b/ui/src/components/IssuesList.tsx
@@ -240,6 +240,35 @@ function isActionableWorkflowStatus(status: IssueStatus): boolean {
   return status !== "done" && status !== "cancelled" && status !== "blocked";
 }
 
+function buildChecklistStepNumberMap(issues: Issue[], nestingEnabled: boolean): Map<string, string> {
+  const stepNumberByIssueId = new Map<string, string>();
+
+  if (!nestingEnabled) {
+    issues.forEach((issue, index) => {
+      stepNumberByIssueId.set(issue.id, String(index + 1));
+    });
+    return stepNumberByIssueId;
+  }
+
+  const { roots, childMap } = buildIssueTree(issues);
+  const visit = (siblings: Issue[], prefix: string | null) => {
+    siblings.forEach((issue, index) => {
+      const stepNumber = prefix ? `${prefix}.${index + 1}` : String(index + 1);
+      stepNumberByIssueId.set(issue.id, stepNumber);
+      visit(childMap.get(issue.id) ?? [], stepNumber);
+    });
+  };
+  visit(roots, null);
+
+  issues.forEach((issue, index) => {
+    if (!stepNumberByIssueId.has(issue.id)) {
+      stepNumberByIssueId.set(issue.id, String(index + 1));
+    }
+  });
+
+  return stepNumberByIssueId;
+}
+
 /* ── Component ── */
 
 interface Agent {
@@ -413,6 +442,8 @@ function SubIssueProgressSummaryStrip({
                 <span>{targetIssue.title}</span>
               </Link>
             </>
+          ) : summary.totalCount === 0 ? (
+            <div className="text-sm font-medium text-foreground">No active sub-issues</div>
           ) : summary.doneCount === summary.totalCount ? (
             <div className="text-sm font-medium text-foreground">All sub-issues done</div>
           ) : (
@@ -825,11 +856,10 @@ export function IssuesList({
     if (!checklistAffordanceEnabled) return null;
 
     const visibleIssueIds = new Set(filtered.map((issue) => issue.id));
-    const stepNumberByIssueId = new Map<string, number>();
+    const stepNumberByIssueId = buildChecklistStepNumberMap(filtered, viewState.nestingEnabled);
     const unresolvedVisibleBlockersByIssueId = new Map<string, string[]>();
 
-    filtered.forEach((issue, index) => {
-      stepNumberByIssueId.set(issue.id, index + 1);
+    filtered.forEach((issue) => {
       const unresolvedVisible = (issue.blockedBy ?? [])
         .map((blocker) => blocker.id)
         .filter((blockerId) => {
@@ -849,7 +879,7 @@ export function IssuesList({
       unresolvedVisibleBlockersByIssueId,
       currentStepIssueId: currentStepIssue?.id ?? null,
     };
-  }, [checklistAffordanceEnabled, filtered, issueById]);
+  }, [checklistAffordanceEnabled, filtered, issueById, viewState.nestingEnabled]);
 
   const { data: labels } = useQuery({
     queryKey: queryKeys.issues.labels(selectedCompanyId!),
diff --git a/ui/src/lib/issue-detail-subissues.test.ts b/ui/src/lib/issue-detail-subissues.test.ts
index 6438948299b..586226ba894 100644
--- a/ui/src/lib/issue-detail-subissues.test.ts
+++ b/ui/src/lib/issue-detail-subissues.test.ts
@@ -53,6 +53,7 @@ describe("buildSubIssueProgressSummary", () => {
       issue("1", "done", "2026-04-01T00:00:00.000Z"),
       issue("2", "in_progress", "2026-04-02T00:00:00.000Z", ["1"]),
       issue("4", "blocked", "2026-04-04T00:00:00.000Z"),
+      issue("5", "cancelled", "2026-04-05T00:00:00.000Z"),
     ]);
 
     expect(summary.totalCount).toBe(4);
@@ -60,6 +61,7 @@ describe("buildSubIssueProgressSummary", () => {
     expect(summary.inProgressCount).toBe(1);
     expect(summary.blockedCount).toBe(1);
     expect(summary.countsByStatus.todo).toBe(1);
+    expect(summary.countsByStatus.cancelled).toBeUndefined();
     expect(summary.target?.kind).toBe("next");
     expect(summary.target?.issue.id).toBe("2");
   });
diff --git a/ui/src/lib/issue-detail-subissues.ts b/ui/src/lib/issue-detail-subissues.ts
index 4c3d610c6f3..3bd3174ad67 100644
--- a/ui/src/lib/issue-detail-subissues.ts
+++ b/ui/src/lib/issue-detail-subissues.ts
@@ -27,11 +27,12 @@ export function shouldRenderSubIssueProgressSummary(enabled: boolean | undefined
 
 export function buildSubIssueProgressSummary(issues: Issue[]): SubIssueProgressSummary {
   const countsByStatus: Partial<Record<IssueStatus, number>> = {};
-  for (const issue of issues) {
+  const progressIssues = issues.filter((issue) => issue.status !== "cancelled");
+  for (const issue of progressIssues) {
     countsByStatus[issue.status] = (countsByStatus[issue.status] ?? 0) + 1;
   }
 
-  const orderedIssues = workflowSort(issues);
+  const orderedIssues = workflowSort(progressIssues);
   const nextIssue = orderedIssues.find((issue) => isActionableStatus(issue.status)) ?? null;
   const remainingIssues = orderedIssues.filter((issue) => !isTerminalStatus(issue.status));
   const blockedIssue =
@@ -40,7 +41,7 @@ export function buildSubIssueProgressSummary(issues: Issue[]): SubIssueProgressS
       : null;
 
   return {
-    totalCount: issues.length,
+    totalCount: progressIssues.length,
     doneCount: countsByStatus.done ?? 0,
     inProgressCount: countsByStatus.in_progress ?? 0,
     blockedCount: countsByStatus.blocked ?? 0,