diff --git a/app/src/ai/blocklist/block/status_bar.rs b/app/src/ai/blocklist/block/status_bar.rs
index edea5172caa..7fd9c260dea 100644
--- a/app/src/ai/blocklist/block/status_bar.rs
+++ b/app/src/ai/blocklist/block/status_bar.rs
@@ -150,6 +150,27 @@ impl BlocklistAIStatusBar {
     ) -> Self {
         let history_model = BlocklistAIHistoryModel::handle(ctx);
         ctx.subscribe_to_model(&history_model, move |me, _, event, ctx| {
+            match event {
+                BlocklistAIHistoryEvent::UpdatedStreamingExchange {
+                    exchange_id,
+                    conversation_id,
+                    ..
+                } => {
+                    if let Some(model) = me.active_exchange_model.as_ref() {
+                        if model.exchange_id(ctx) == Some(*exchange_id) {
+                            me.on_updated_active_exchange_output(ctx);
+                        } else if model.conversation_id(ctx) == Some(*conversation_id) {
+                            ctx.notify();
+                        }
+                    }
+                    return;
+                }
+                BlocklistAIHistoryEvent::ConversationUsageMetadataUpdated { .. } => {
+                    ctx.notify();
+                    return;
+                }
+                _ => (),
+            }
             if event
                 .terminal_surface_id()
                 .is_some_and(|id| id != terminal_view_id)
@@ -495,13 +516,7 @@ impl BlocklistAIStatusBar {
                     )
                     .ok()
                 })
-                .map(|model| {
-                    model.on_updated_output(
-                        Box::new(|me, ctx| me.on_updated_active_exchange_output(ctx)),
-                        ctx,
-                    );
-                    Box::new(model) as Box<dyn AIBlockModel<View = BlocklistAIStatusBar>>
-                });
+                .map(|model| Box::new(model) as Box<dyn AIBlockModel<View = BlocklistAIStatusBar>>);
             self.is_summarization_cancel_dialog_open = false;
             self.stop_summarization_timer();
 
diff --git a/app/src/ai/blocklist/block/status_bar_tests.rs b/app/src/ai/blocklist/block/status_bar_tests.rs
index 18d46ce0099..1861dae499c 100644
--- a/app/src/ai/blocklist/block/status_bar_tests.rs
+++ b/app/src/ai/blocklist/block/status_bar_tests.rs
@@ -1,10 +1,104 @@
+use std::cell::RefCell;
+use std::rc::Rc;
+
 use warp_core::features::FeatureFlag;
+use warpui::{App, EntityId, SingletonEntity};
 
 use super::{
-    ModelInUse, UNNAMED_FALLBACK_MODEL_WARPING_TEXT, WarpingModelInputs, WarpingModelMessage,
-    warping_model_message,
+    BlocklistAIStatusBarEvent, ModelInUse, UNNAMED_FALLBACK_MODEL_WARPING_TEXT, WarpingModelInputs,
+    WarpingModelMessage, warping_model_message,
 };
 use crate::ai::agent::OutputModelInfo;
+use crate::ai::agent::conversation::{AIConversation, AIConversationId};
+use crate::ai::blocklist::{BlocklistAIHistoryEvent, BlocklistAIHistoryModel};
+use crate::test_util::ai_agent_tasks::{create_api_task, create_message};
+use crate::test_util::terminal::{add_window_with_terminal, initialize_app_for_terminal_view};
+
+#[test]
+fn inactive_exchange_updates_do_not_close_summarization_dialog() {
+    App::test((), |mut app| async move {
+        let _tips = FeatureFlag::AgentTips.override_enabled(false);
+        initialize_app_for_terminal_view(&mut app);
+        let terminal = add_window_with_terminal(&mut app, None);
+        let terminal_surface_id = terminal.id();
+        let status_bar = terminal.read(&app, |terminal, ctx| {
+            terminal.input().as_ref(ctx).agent_status_bar().clone()
+        });
+        let history = app.read(BlocklistAIHistoryModel::handle);
+        let conversation = AIConversation::new_restored(
+            AIConversationId::new(),
+            vec![create_api_task(
+                "root",
+                (0..2)
+                    .map(|index| {
+                        let mut message = create_message(&format!("message-{index}"), "root");
+                        message.request_id = format!("request-{index}");
+                        message
+                    })
+                    .collect(),
+            )],
+            None,
+        )
+        .unwrap();
+        let conversation_id = conversation.id();
+        let task_id = conversation.get_root_task_id().clone();
+        let exchange_ids: Vec<_> = conversation
+            .all_exchanges()
+            .iter()
+            .map(|exchange| exchange.id)
+            .collect();
+        assert_eq!(exchange_ids.len(), 2);
+        history.update(&mut app, |history, ctx| {
+            history.restore_conversations(terminal_surface_id, vec![conversation], ctx);
+        });
+        for exchange_id in &exchange_ids {
+            history.update(&mut app, |_, ctx| {
+                ctx.emit(BlocklistAIHistoryEvent::AppendedExchange {
+                    exchange_id: *exchange_id,
+                    conversation_id,
+                    task_id: task_id.clone(),
+                    terminal_surface_id,
+                    is_hidden: false,
+                    response_stream_id: None,
+                });
+            });
+        }
+        let dialog_events = Rc::new(RefCell::new(Vec::new()));
+        let observed_dialog_events = dialog_events.clone();
+        app.update(|ctx| {
+            ctx.subscribe_to_view(&status_bar, move |_, event, _| {
+                if let BlocklistAIStatusBarEvent::SummarizationCancelDialogToggled { is_open } =
+                    event
+                {
+                    observed_dialog_events.borrow_mut().push(*is_open);
+                }
+            });
+        });
+        status_bar.update(&mut app, |bar, ctx| {
+            bar.open_summarization_cancel_dialog(ctx);
+        });
+
+        history.update(&mut app, |_, ctx| {
+            ctx.emit(BlocklistAIHistoryEvent::UpdatedStreamingExchange {
+                exchange_id: exchange_ids[0],
+                conversation_id,
+                terminal_surface_id,
+                is_hidden: false,
+            });
+        });
+        assert_eq!(*dialog_events.borrow(), vec![true]);
+
+        history.update(&mut app, |_, ctx| {
+            ctx.emit(BlocklistAIHistoryEvent::UpdatedStreamingExchange {
+                exchange_id: exchange_ids[1],
+                conversation_id,
+                terminal_surface_id: EntityId::new(),
+                is_hidden: false,
+            });
+        });
+        assert_eq!(*dialog_events.borrow(), vec![true, false]);
+    });
+}
 
 fn named(display_name: &str) -> ModelInUse {
     ModelInUse {