diff --git a/ui/src/components/SidebarAgents.test.tsx b/ui/src/components/SidebarAgents.test.tsx
index ed4b28e783f..c75327fb767 100644
--- a/ui/src/components/SidebarAgents.test.tsx
+++ b/ui/src/components/SidebarAgents.test.tsx
@@ -238,4 +238,76 @@ describe("SidebarAgents", () => {
     expect(mockAgentsApi.resume).toHaveBeenCalledWith("agent-1", "company-1");
     expect(mockPushToast).toHaveBeenCalledWith(expect.objectContaining({ title: "Agent resumed" }));
   });
+
+  it("only shows updating state for the agent currently being changed", async () => {
+    mockAgentsApi.list.mockResolvedValue([
+      makeAgent({ id: "agent-1", name: "Alpha", urlKey: "alpha" }),
+      makeAgent({ id: "agent-2", name: "Beta", urlKey: "beta" }),
+    ]);
+    mockAgentsApi.pause.mockImplementation(() => new Promise(() => {}));
+    const currentRoot = createRoot(container);
+    root = currentRoot;
+
+    await act(async () => {
+      currentRoot.render(
+        <QueryClientProvider client={queryClient}>
+          <SidebarAgents />
+        </QueryClientProvider>,
+      );
+    });
+    await flushReact();
+    await openAgentMenu();
+
+    const pauseItem = Array.from(document.body.querySelectorAll('[data-slot="dropdown-menu-item"]'))
+      .find((element) => element.textContent?.includes("Pause agent"));
+    expect(pauseItem).toBeTruthy();
+
+    await act(async () => {
+      pauseItem?.dispatchEvent(new MouseEvent("click", { bubbles: true }));
+    });
+    await flushReact();
+    await openAgentMenu("Open actions for Beta");
+
+    const betaPauseItem = Array.from(
+      document.body.querySelectorAll('[data-slot="dropdown-menu-item"]'),
+    )
+      .find((element) => element.textContent?.includes("Pause agent"));
+    expect(betaPauseItem).toBeTruthy();
+    expect(document.body.textContent).not.toContain("Updating...");
+  });
+
+  it("does not offer sidebar resume for budget-paused agents", async () => {
+    mockAgentsApi.list.mockResolvedValue([
+      makeAgent({
+        status: "paused",
+        pauseReason: "budget",
+        pausedAt: new Date("2026-01-02T00:00:00Z"),
+      }),
+    ]);
+    const currentRoot = createRoot(container);
+    root = currentRoot;
+
+    await act(async () => {
+      currentRoot.render(
+        <QueryClientProvider client={queryClient}>
+          <SidebarAgents />
+        </QueryClientProvider>,
+      );
+    });
+    await flushReact();
+    await openAgentMenu();
+
+    const budgetPausedItem = Array.from(
+      document.body.querySelectorAll('[data-slot="dropdown-menu-item"]'),
+    )
+      .find((element) => element.textContent?.includes("Budget paused"));
+    expect(budgetPausedItem).toBeTruthy();
+
+    await act(async () => {
+      budgetPausedItem?.dispatchEvent(new MouseEvent("click", { bubbles: true }));
+    });
+    await flushReact();
+
+    expect(mockAgentsApi.resume).not.toHaveBeenCalled();
+  });
 });
diff --git a/ui/src/components/SidebarAgents.tsx b/ui/src/components/SidebarAgents.tsx
index e0aa98bb60b..e2efa56eb50 100644
--- a/ui/src/components/SidebarAgents.tsx
+++ b/ui/src/components/SidebarAgents.tsx
@@ -61,7 +61,14 @@ function SidebarAgentItem({
   const editHref = `${agentUrl(agent)}/configuration`;
   const isActive = activeAgentId === routeRef;
   const isPaused = agent.status === "paused";
+  const isBudgetPaused = isPaused && agent.pauseReason === "budget";
   const pauseResumeLabel = isPaused ? "Resume agent" : "Pause agent";
+  const pauseResumeDisabled = disabled || agent.status === "pending_approval" || isBudgetPaused;
+  const pauseResumeDisabledLabel = disabled
+    ? "Updating..."
+    : isBudgetPaused
+      ? "Budget paused"
+      : pauseResumeLabel;
 
   return (
     <div className="group/agent relative flex items-center">
@@ -130,11 +137,15 @@ function SidebarAgentItem({
           </DropdownMenuItem>
           <DropdownMenuSeparator />
           <DropdownMenuItem
-            onClick={() => onPauseResume(agent, isPaused ? "resume" : "pause")}
-            disabled={disabled || agent.status === "pending_approval"}
+            onClick={() => {
+              if (pauseResumeDisabled) return;
+              onPauseResume(agent, isPaused ? "resume" : "pause");
+            }}
+            disabled={pauseResumeDisabled}
+            title={isBudgetPaused ? "Agent was paused by budget limits" : undefined}
           >
             {isPaused ? <PlayCircle className="size-4" /> : <PauseCircle className="size-4" />}
-            <span>{disabled ? "Updating..." : pauseResumeLabel}</span>
+            <span>{pauseResumeDisabledLabel}</span>
           </DropdownMenuItem>
         </DropdownMenuContent>
       </DropdownMenu>
@@ -144,6 +155,7 @@ function SidebarAgentItem({
 
 export function SidebarAgents() {
   const [open, setOpen] = useState(true);
+  const [pendingAgentIds, setPendingAgentIds] = useState<Set<string>>(() => new Set());
   const queryClient = useQueryClient();
   const { selectedCompanyId } = useCompany();
   const { openNewAgent } = useDialog();
@@ -198,6 +210,13 @@ export function SidebarAgents() {
       action === "pause"
         ? agentsApi.pause(agent.id, selectedCompanyId ?? undefined)
         : agentsApi.resume(agent.id, selectedCompanyId ?? undefined),
+    onMutate: ({ agent }) => {
+      setPendingAgentIds((current) => {
+        const next = new Set(current);
+        next.add(agent.id);
+        return next;
+      });
+    },
     onSuccess: async (_agent, { agent, action }) => {
       if (selectedCompanyId) {
         await Promise.all([
@@ -223,6 +242,13 @@ export function SidebarAgents() {
         tone: "error",
       });
     },
+    onSettled: (_data, _error, { agent }) => {
+      setPendingAgentIds((current) => {
+        const next = new Set(current);
+        next.delete(agent.id);
+        return next;
+      });
+    },
   });
 
   return (
@@ -263,7 +289,7 @@ export function SidebarAgents() {
                 activeAgentId={activeAgentId}
                 activeTab={activeTab}
                 agent={agent}
-                disabled={pauseResumeAgent.isPending}
+                disabled={pendingAgentIds.has(agent.id)}
                 isMobile={isMobile}
                 onPauseResume={(targetAgent, action) => pauseResumeAgent.mutate({ agent: targetAgent, action })}
                 runCount={runCount}