diff --git a/packages/app/src/utils/agent-snapshots.ts b/packages/app/src/utils/agent-snapshots.ts
index 6e4501885..f45c36438 100644
--- a/packages/app/src/utils/agent-snapshots.ts
+++ b/packages/app/src/utils/agent-snapshots.ts
@@ -1,6 +1,6 @@
 import type { AgentSnapshotPayload } from "@getpaseo/protocol/messages";
 import type { AgentPermissionRequest } from "@getpaseo/protocol/agent-types";
-import { PARENT_AGENT_ID_LABEL } from "@getpaseo/protocol/agent-labels";
+import { getParentAgentIdFromLabels } from "@getpaseo/protocol/agent-labels";
 
 export function derivePendingPermissionKey(
   agentId: string,
@@ -26,11 +26,7 @@ export function normalizeAgentSnapshot(snapshot: AgentSnapshotPayload, serverId:
     ? new Date(snapshot.attentionTimestamp)
     : null;
   const archivedAt = snapshot.archivedAt ? new Date(snapshot.archivedAt) : null;
-  const parentAgentLabel = snapshot.labels?.[PARENT_AGENT_ID_LABEL];
-  const parentAgentId =
-    typeof parentAgentLabel === "string" && parentAgentLabel.trim().length > 0
-      ? parentAgentLabel.trim()
-      : null;
+  const parentAgentId = getParentAgentIdFromLabels(snapshot.labels);
 
   return {
     serverId,
diff --git a/packages/protocol/src/agent-labels.test.ts b/packages/protocol/src/agent-labels.test.ts
new file mode 100644
index 000000000..c57db3a09
--- /dev/null
+++ b/packages/protocol/src/agent-labels.test.ts
@@ -0,0 +1,21 @@
+import { describe, expect, test } from "vitest";
+import {
+  getParentAgentIdFromLabels,
+  isDelegatedAgent,
+  PARENT_AGENT_ID_LABEL,
+} from "./agent-labels.js";
+
+describe("agent label policy", () => {
+  test("treats a non-empty parent agent label as delegation", () => {
+    const labels = { [PARENT_AGENT_ID_LABEL]: " parent-agent \n" };
+
+    expect(getParentAgentIdFromLabels(labels)).toBe("parent-agent");
+    expect(isDelegatedAgent({ labels })).toBe(true);
+  });
+
+  test("ignores missing, empty, and non-string parent agent labels", () => {
+    expect(isDelegatedAgent({ labels: {} })).toBe(false);
+    expect(isDelegatedAgent({ labels: { [PARENT_AGENT_ID_LABEL]: "   " } })).toBe(false);
+    expect(isDelegatedAgent({ labels: { [PARENT_AGENT_ID_LABEL]: 42 } })).toBe(false);
+  });
+});
diff --git a/packages/protocol/src/agent-labels.ts b/packages/protocol/src/agent-labels.ts
index 9cc4180d4..3ad40022e 100644
--- a/packages/protocol/src/agent-labels.ts
+++ b/packages/protocol/src/agent-labels.ts
@@ -1 +1,16 @@
 export const PARENT_AGENT_ID_LABEL = "paseo.parent-agent-id";
+
+export interface AgentLabelSource {
+  labels?: Record<string, unknown> | null;
+}
+
+export function getParentAgentIdFromLabels(labels: Record<string, unknown> | null | undefined) {
+  const parentAgentId = labels?.[PARENT_AGENT_ID_LABEL];
+  return typeof parentAgentId === "string" && parentAgentId.trim().length > 0
+    ? parentAgentId.trim()
+    : null;
+}
+
+export function isDelegatedAgent(agent: AgentLabelSource): boolean {
+  return getParentAgentIdFromLabels(agent.labels) !== null;
+}
diff --git a/packages/server/src/server/agent/agent-manager.test.ts b/packages/server/src/server/agent/agent-manager.test.ts
index d4824e0f8..465f98a4b 100644
--- a/packages/server/src/server/agent/agent-manager.test.ts
+++ b/packages/server/src/server/agent/agent-manager.test.ts
@@ -3892,6 +3892,39 @@ test("onAgentAttention is not called for internal agents", async () => {
   expect(attentionCalls).toHaveLength(0);
 });
 
+test("onAgentAttention is not called for delegated child agents", async () => {
+  const childAgentId = "00000000-0000-4000-8000-000000000112";
+  const workdir = mkdtempSync(join(tmpdir(), "agent-manager-test-"));
+  const storagePath = join(workdir, "agents");
+  const storage = new AgentStorage(storagePath, logger);
+  const attentionCalls: string[] = [];
+  const manager = new AgentManager({
+    clients: {
+      codex: new TestAgentClient(),
+    },
+    registry: storage,
+    logger,
+    idFactory: () => childAgentId,
+    onAgentAttention: ({ agentId }) => {
+      attentionCalls.push(agentId);
+    },
+  });
+
+  const agent = await manager.createAgent(
+    {
+      provider: "codex",
+      cwd: workdir,
+      title: "Delegated Child Agent",
+    },
+    undefined,
+    { labels: { [PARENT_AGENT_ID_LABEL]: "parent-agent" } },
+  );
+
+  await manager.runAgent(agent.id, "hello");
+
+  expect(attentionCalls).toEqual([]);
+});
+
 test("clearAgentAttention on errored agent stays cleared until a new error transition", async () => {
   const workdir = mkdtempSync(join(tmpdir(), "agent-manager-attention-error-"));
   const storagePath = join(workdir, "agents");
diff --git a/packages/server/src/server/agent/agent-manager.ts b/packages/server/src/server/agent/agent-manager.ts
index 1e8fe4ba8..fe2988d89 100644
--- a/packages/server/src/server/agent/agent-manager.ts
+++ b/packages/server/src/server/agent/agent-manager.ts
@@ -5,7 +5,7 @@ import {
   AGENT_LIFECYCLE_STATUSES,
   type AgentLifecycleStatus,
 } from "@getpaseo/protocol/agent-lifecycle";
-import { PARENT_AGENT_ID_LABEL } from "@getpaseo/protocol/agent-labels";
+import { isDelegatedAgent, PARENT_AGENT_ID_LABEL } from "@getpaseo/protocol/agent-labels";
 import type { Logger } from "pino";
 import { z } from "zod";
 import type { TerminalManager } from "../../terminal/terminal-manager.js";
@@ -3368,6 +3368,10 @@ export class AgentManager {
     agent: ManagedAgent,
     reason: "finished" | "error" | "permission",
   ): void {
+    if (isDelegatedAgent(agent)) {
+      return;
+    }
+
     this.onAgentAttention?.({
       agentId: agent.id,
       provider: agent.provider,
diff --git a/packages/server/src/server/workspace-directory.test.ts b/packages/server/src/server/workspace-directory.test.ts
new file mode 100644
index 000000000..5456a656f
--- /dev/null
+++ b/packages/server/src/server/workspace-directory.test.ts
@@ -0,0 +1,153 @@
+import { describe, expect, test } from "vitest";
+import { PARENT_AGENT_ID_LABEL } from "@getpaseo/protocol/agent-labels";
+import { createTestLogger } from "../test-utils/test-logger.js";
+import type { AgentSnapshotPayload, WorkspaceDescriptorPayload } from "./messages.js";
+import { WorkspaceDirectory } from "./workspace-directory.js";
+import type { PersistedProjectRecord, PersistedWorkspaceRecord } from "./workspace-registry.js";
+
+const NOW = "2026-03-01T12:00:00.000Z";
+
+class WorkspaceStatus {
+  private readonly project: PersistedProjectRecord = {
+    projectId: "project-1",
+    rootPath: "/workspace/project",
+    kind: "git",
+    displayName: "project",
+    customName: null,
+    createdAt: NOW,
+    updatedAt: NOW,
+    archivedAt: null,
+  };
+
+  private readonly workspace: PersistedWorkspaceRecord = {
+    workspaceId: "workspace-1",
+    projectId: this.project.projectId,
+    cwd: this.project.rootPath,
+    kind: "local_checkout",
+    displayName: "main",
+    createdAt: NOW,
+    updatedAt: NOW,
+    archivedAt: null,
+  };
+
+  private readonly agents: AgentSnapshotPayload[] = [];
+  private readonly directory = new WorkspaceDirectory({
+    logger: createTestLogger(),
+    projectRegistry: { list: async () => [this.project] },
+    workspaceRegistry: { list: async () => [this.workspace] },
+    listAgentPayloads: async () => this.agents,
+    isProviderVisibleToClient: () => true,
+    buildWorkspaceDescriptor: async ({ workspace }) => ({
+      id: workspace.workspaceId,
+      projectId: workspace.projectId,
+      projectDisplayName: "project",
+      projectCustomName: null,
+      projectRootPath: this.project.rootPath,
+      workspaceDirectory: workspace.cwd,
+      projectKind: "git",
+      workspaceKind: workspace.kind,
+      name: workspace.displayName,
+      archivingAt: null,
+      status: "done",
+      activityAt: null,
+      diffStat: null,
+      scripts: [],
+      gitRuntime: null,
+      githubRuntime: null,
+    }),
+  });
+
+  hasRootAgent(input: AgentState): void {
+    this.agents.push(createAgent({ ...input, cwd: this.workspace.cwd }));
+  }
+
+  hasDelegatedAgent(input: AgentState): void {
+    this.agents.push(
+      createAgent({
+        ...input,
+        cwd: this.workspace.cwd,
+        labels: { [PARENT_AGENT_ID_LABEL]: "parent-agent" },
+      }),
+    );
+  }
+
+  async workspaceStatus(): Promise<WorkspaceDescriptorPayload["status"]> {
+    const entries = await this.directory.listFetchEntries({
+      type: "fetch_workspaces_request",
+      requestId: "workspace-status",
+    });
+    return entries.entries[0]?.status ?? "done";
+  }
+}
+
+interface AgentState {
+  id: string;
+  status: AgentSnapshotPayload["status"];
+  pendingPermissionCount?: number;
+  requiresAttention?: boolean;
+  attentionReason?: AgentSnapshotPayload["attentionReason"];
+}
+
+function createAgent(input: AgentState & { cwd: string; labels?: Record<string, string> }) {
+  const pendingPermissionCount = input.pendingPermissionCount ?? 0;
+  return {
+    id: input.id,
+    provider: "codex",
+    cwd: input.cwd,
+    model: null,
+    thinkingOptionId: null,
+    effectiveThinkingOptionId: null,
+    createdAt: NOW,
+    updatedAt: NOW,
+    lastUserMessageAt: null,
+    status: input.status,
+    capabilities: {
+      supportsStreaming: true,
+      supportsSessionPersistence: true,
+      supportsDynamicModes: true,
+      supportsMcpServers: true,
+      supportsReasoningStream: true,
+      supportsToolInvocations: true,
+    },
+    currentModeId: null,
+    availableModes: [],
+    pendingPermissions: Array.from({ length: pendingPermissionCount }, (_, index) => ({
+      id: `permission-${input.id}-${index}`,
+      provider: "codex",
+      name: "tool",
+      kind: "tool" as const,
+    })),
+    persistence: null,
+    runtimeInfo: {
+      provider: "codex",
+      sessionId: null,
+    },
+    title: null,
+    labels: input.labels ?? {},
+    requiresAttention: input.requiresAttention ?? false,
+    attentionReason: input.attentionReason ?? null,
+    attentionTimestamp: null,
+    archivedAt: null,
+  } satisfies AgentSnapshotPayload;
+}
+
+describe("WorkspaceDirectory", () => {
+  test("uses root agent activity, not delegated child activity, for workspace status", async () => {
+    const workspace = new WorkspaceStatus();
+
+    workspace.hasRootAgent({ id: "root-agent", status: "running" });
+    workspace.hasDelegatedAgent({
+      id: "child-needs-input",
+      status: "idle",
+      pendingPermissionCount: 1,
+    });
+    workspace.hasDelegatedAgent({
+      id: "child-error",
+      status: "error",
+      requiresAttention: true,
+      attentionReason: "error",
+    });
+
+    await expect(workspace.workspaceStatus()).resolves.toBe("running");
+  });
+});
diff --git a/packages/server/src/server/workspace-directory.ts b/packages/server/src/server/workspace-directory.ts
index 84c143b98..0d37eb256 100644
--- a/packages/server/src/server/workspace-directory.ts
+++ b/packages/server/src/server/workspace-directory.ts
@@ -11,6 +11,7 @@ import {
   deriveAgentStateBucket,
   getWorkspaceStateBucketPriority,
 } from "@getpaseo/protocol/agent-state-bucket";
+import { isDelegatedAgent } from "@getpaseo/protocol/agent-labels";
 import { SortablePager } from "./pagination/sortable-pager.js";
 import type { PersistedProjectRecord, PersistedWorkspaceRecord } from "./workspace-registry.js";
 import { normalizeWorkspaceId } from "./workspace-registry-model.js";
@@ -187,6 +188,9 @@ export class WorkspaceDirectory {
       if (!this.deps.isProviderVisibleToClient(agent.provider)) {
         continue;
       }
+      if (isDelegatedAgent(agent)) {
+        continue;
+      }
 
       const workspaceId = workspaceIdsByDirectory.get(normalizeWorkspaceId(agent.cwd));
       if (workspaceId === undefined) {