diff --git a/packages/hooks/src/use-chat.ts b/packages/hooks/src/use-chat.ts
index 5711cde5..208f06b2 100644
--- a/packages/hooks/src/use-chat.ts
+++ b/packages/hooks/src/use-chat.ts
@@ -9,13 +9,22 @@ import {
   type AgentMessageItem,
   type ExecApprovalRequestPayload,
   type ApprovalDecision,
+  type CompactionEndEvent,
 } from "@multica/sdk";
 
 export type ToolStatus = "running" | "success" | "error" | "interrupted";
 
+export interface CompactionInfo {
+  removed: number;
+  kept: number;
+  tokensRemoved?: number;
+  tokensKept?: number;
+  reason: string;
+}
+
 export interface Message {
   id: string;
-  role: "user" | "assistant" | "toolResult";
+  role: "user" | "assistant" | "toolResult" | "system";
   content: ContentBlock[];
   agentId: string;
   stopReason?: string;
@@ -24,6 +33,8 @@ export interface Message {
   toolArgs?: Record<string, unknown>;
   toolStatus?: ToolStatus;
   isError?: boolean;
+  systemType?: "compaction";
+  compaction?: CompactionInfo;
 }
 
 export interface ChatError {
@@ -215,6 +226,27 @@ export function useChat() {
       }
       case "tool_execution_update":
         break;
+      case "compaction_end": {
+        const ce = event as CompactionEndEvent;
+        setMessages((prev) => [
+          ...prev,
+          {
+            id: uuidv7(),
+            role: "system",
+            content: [],
+            agentId: payload.agentId,
+            systemType: "compaction",
+            compaction: {
+              removed: ce.removed,
+              kept: ce.kept,
+              tokensRemoved: ce.tokensRemoved,
+              tokensKept: ce.tokensKept,
+              reason: ce.reason,
+            },
+          },
+        ]);
+        break;
+      }
     }
   }, []);
 
diff --git a/packages/store/src/types.ts b/packages/store/src/types.ts
index 40654954..d0d48340 100644
--- a/packages/store/src/types.ts
+++ b/packages/store/src/types.ts
@@ -2,9 +2,17 @@ import type { ContentBlock } from "@multica/sdk"
 
 export type ToolStatus = "running" | "success" | "error" | "interrupted"
 
+export interface CompactionInfo {
+  removed: number
+  kept: number
+  tokensRemoved?: number
+  tokensKept?: number
+  reason: string
+}
+
 export interface Message {
   id: string
-  role: "user" | "assistant" | "toolResult"
+  role: "user" | "assistant" | "toolResult" | "system"
   content: ContentBlock[]
   agentId: string
   stopReason?: string
@@ -13,4 +21,6 @@ export interface Message {
   toolArgs?: Record<string, unknown>
   toolStatus?: ToolStatus
   isError?: boolean
+  systemType?: "compaction"
+  compaction?: CompactionInfo
 }
diff --git a/packages/ui/src/components/compaction-item.tsx b/packages/ui/src/components/compaction-item.tsx
new file mode 100644
index 00000000..1425f94c
--- /dev/null
+++ b/packages/ui/src/components/compaction-item.tsx
@@ -0,0 +1,45 @@
+"use client"
+
+import { memo } from "react"
+import { Scissors } from "lucide-react"
+import type { Message } from "@multica/store"
+
+function formatTokens(n: number): string {
+  if (n >= 1000) return `~${(n / 1000).toFixed(1)}k`
+  return `${n}`
+}
+
+interface CompactionItemProps {
+  message: Message
+}
+
+export const CompactionItem = memo(function CompactionItem({ message }: CompactionItemProps) {
+  const info = message.compaction
+  if (!info) return null
+
+  const label = info.reason === "summary" ? "Context summarized" : "Context compacted"
+  const removed = `${info.removed} messages removed`
+  const tokens = info.tokensRemoved != null
+    ? `, ${formatTokens(info.tokensRemoved)} tokens freed`
+    : ""
+
+  return (
+    <div className="py-0.5 px-2.5 text-sm text-muted-foreground">
+      <div className="flex items-center gap-1.5 px-2.5 py-1">
+        {/* Status dot */}
+        <span className="size-1.5 rounded-full shrink-0 bg-muted-foreground/40" />
+
+        {/* Icon */}
+        <Scissors className="size-3.5 shrink-0" />
+
+        {/* Label */}
+        <span className="font-medium shrink-0">{label}</span>
+
+        {/* Stats */}
+        <span className="ml-auto text-xs text-muted-foreground/60 shrink-0">
+          {removed}{tokens}
+        </span>
+      </div>
+    </div>
+  )
+})
diff --git a/packages/ui/src/components/message-list.tsx b/packages/ui/src/components/message-list.tsx
index 3a754bc3..b2ea2fa2 100644
--- a/packages/ui/src/components/message-list.tsx
+++ b/packages/ui/src/components/message-list.tsx
@@ -5,6 +5,7 @@ import { MemoizedMarkdown } from "@multica/ui/components/markdown";
 import { StreamingMarkdown } from "@multica/ui/components/markdown/StreamingMarkdown";
 import { ToolCallItem } from "@multica/ui/components/tool-call-item";
 import { ThinkingItem } from "@multica/ui/components/thinking-item";
+import { CompactionItem } from "@multica/ui/components/compaction-item";
 import { cn, getTextContent } from "@multica/ui/lib/utils";
 import type { Message } from "@multica/store";
 import type { ContentBlock, ToolCall, ThinkingContent } from "@multica/sdk";
@@ -78,6 +79,11 @@ export const MessageList = memo(function MessageList({ messages, streamingIds }:
   return (
     <div className="relative p-6 px-4 sm:px-10 max-w-4xl mx-auto">
       {messages.map((msg) => {
+        // System messages (e.g. compaction notifications)
+        if (msg.role === "system") {
+          return <CompactionItem key={msg.id} message={msg} />
+        }
+
         // ToolResult messages → render as tool execution item
         if (msg.role === "toolResult") {
           return <ToolCallItem key={msg.id} message={msg} />