diff --git a/agent/conversation_compression.py b/agent/conversation_compression.py
index 52778a4e3f..a02c322d90 100644
--- a/agent/conversation_compression.py
+++ b/agent/conversation_compression.py
@@ -3611,19 +3611,27 @@ def compress_context(
     if not force and _automatic_compression_gate_blocks(agent, bypass_cooldown):
         return messages, _existing_system_prompt(agent, system_message)
 
-    # Lazy feasibility probe (~400ms cold) on first attempt, not __init__; it sets
-    # _compression_warning so status replay still surfaces the warning. Marked checked
-    # only after the probe completes (transient failures are swallowed inside).
-    if not getattr(agent, "_compression_feasibility_checked", False):
-        check_compression_model_feasibility(agent)
-        agent._compression_feasibility_checked = True
     _pre_msg_count = len(messages)
     # In-place keeps the SAME session_id (no rotation/child/renumber/re-sync). A
     # missing attribute must default True, not rotation, which can wedge sessions.
     in_place = bool(getattr(agent, "compression_in_place", True))
+    # Announce BEFORE the lazy feasibility probe: its live catalog / provider lookups are
+    # network-bound (connect timeouts stack up through proxies), and until this status lands
+    # the Desktop working row is a bare spinner with no "Summarizing thread" label (#111294).
     lifecycle = _announce_compression_start(
         agent, message_count=_pre_msg_count, approx_tokens=approx_tokens, focus_topic=focus_topic, force=force
     )
+    # Lazy feasibility probe (~400ms cold) on first attempt, not __init__; it sets
+    # _compression_warning so status replay still surfaces the warning. Marked checked
+    # only after the probe completes (transient failures are swallowed inside). A hard
+    # rejection propagates; retire the announced phase first so the client is not left compacting.
+    if not getattr(agent, "_compression_feasibility_checked", False):
+        try:
+            check_compression_model_feasibility(agent)
+        except Exception:
+            lifecycle.complete(force_terminal=True)
+            raise
+        agent._compression_feasibility_checked = True
     lease, _abort_prompt = _acquire_compression_lease(
         agent, commit_fence=commit_fence, lifecycle=lifecycle, system_message=system_message,
         approx_tokens=approx_tokens, attempt_started_at=attempt.started_at,
diff --git a/tests/agent/test_413_compression.py b/tests/agent/test_413_compression.py
index 464cef6c79..65a9c83067 100644
--- a/tests/agent/test_413_compression.py
+++ b/tests/agent/test_413_compression.py
@@ -499,6 +499,44 @@ class TestPreflightCompression:
             ("compacted", COMPACTION_DONE_STATUS),
         ]
 
+    def test_compress_context_announces_before_lazy_feasibility_probe(self, agent):
+        """The compacting status must land BEFORE the first-attempt feasibility probe (live catalog /
+        provider lookups): a slow probe otherwise leaves the Desktop working row on a bare spinner with no
+        \"Summarizing thread\" label (#111294). The probe's hard rejection still retires the phase."""
+        import agent.conversation_compression as cc
+
+        agent.compression_enabled = True
+        agent._compression_feasibility_checked = False
+        events = []
+        agent.status_callback = lambda ev, msg: events.append((ev, msg))
+
+        def _fake_compress(messages, current_tokens=None, focus_topic=None, force=False, memory_context=""):
+            events.append(("compress", "started"))
+            return [{"role": "user", "content": f"{SUMMARY_PREFIX}\nPrevious conversation"}]
+
+        with (
+            patch.object(cc, "check_compression_model_feasibility",
+                         side_effect=lambda a: events.append(("probe", "feasibility"))),
+            patch.object(agent.context_compressor, "compress", side_effect=_fake_compress),
+            patch.object(agent, "_build_system_prompt", return_value="new system prompt"),
+            patch("agent.conversation_compression.estimate_request_tokens_rough", return_value=42),
+        ):
+            agent._compress_context([{"role": "user", "content": "hello"}], "system prompt", approx_tokens=1234)
+
+        assert events[:2] == [("lifecycle", COMPACTION_STATUS), ("probe", "feasibility")]
+        assert events[-1] == ("compacted", COMPACTION_DONE_STATUS)
+        assert agent._compression_feasibility_checked is True
+
+        # Hard rejection (aux window below minimum) propagates AND retires the announced phase.
+        agent._compression_feasibility_checked = False
+        events.clear()
+        with (
+            patch.object(cc, "check_compression_model_feasibility", side_effect=ValueError("aux too small")),
+            pytest.raises(ValueError),
+        ):
+            agent._compress_context([{"role": "user", "content": "hello"}], "system prompt", approx_tokens=1234)
+        assert events == [("lifecycle", COMPACTION_STATUS), ("compacted", COMPACTION_DONE_STATUS)]
+
     def test_compress_context_emits_one_terminal_status_when_lock_is_unavailable(self, agent):
         """A rejected lock must retire the started desktop compaction phase."""
         agent.compression_enabled = False