diff --git a/desktop/src/app/AppShell.tsx b/desktop/src/app/AppShell.tsx
index a32fe0e43..26facfc3d 100644
--- a/desktop/src/app/AppShell.tsx
+++ b/desktop/src/app/AppShell.tsx
@@ -447,6 +447,8 @@ export function AppShell() {
                   >
                     <ChevronRight className="h-3.5 w-3.5" />
                   </Button>
+                </div>
+                <div className="fixed right-[16px] top-[8px] z-50">
                   <UpdateIndicator
                     onOpenUpdates={() => handleOpenSettings("updates")}
                   />
diff --git a/desktop/src/features/settings/UpdateIndicator.tsx b/desktop/src/features/settings/UpdateIndicator.tsx
index 15697729b..7c9590053 100644
--- a/desktop/src/features/settings/UpdateIndicator.tsx
+++ b/desktop/src/features/settings/UpdateIndicator.tsx
@@ -3,9 +3,35 @@ import { Download, RefreshCw } from "lucide-react";
 import { Button } from "@/shared/ui/button";
 
 import { useUpdaterContext } from "./hooks/UpdaterProvider";
+import type { UpdateStatus } from "./hooks/use-updater";
 
 const indicatorButtonClass =
-  "relative h-6 w-6 text-muted-foreground/70 hover:bg-muted/60 hover:text-foreground";
+  "relative text-muted-foreground/70 hover:bg-muted/60 hover:text-foreground";
+
+const iconClass = "h-3.5 w-3.5";
+
+const variants: Record<
+  "available" | "ready",
+  { Icon: typeof Download; label: string; badgeColor: string }
+> = {
+  available: {
+    Icon: Download,
+    label: "Update available",
+    badgeColor: "bg-primary",
+  },
+  ready: {
+    Icon: RefreshCw,
+    label: "Restart to update",
+    badgeColor: "bg-emerald-500",
+  },
+};
+
+function getVariant(state: UpdateStatus["state"]) {
+  if (state === "available" || state === "ready") {
+    return variants[state];
+  }
+  return null;
+}
 
 export function UpdateIndicator({
   onOpenUpdates,
@@ -13,36 +39,27 @@ export function UpdateIndicator({
   onOpenUpdates: () => void;
 }) {
   const { status } = useUpdaterContext();
+  const variant = getVariant(status.state);
 
-  if (status.state === "available") {
-    return (
-      <Button
-        aria-label="Update available"
-        className={indicatorButtonClass}
-        onClick={onOpenUpdates}
-        size="icon"
-        variant="ghost"
-      >
-        <Download className="h-3.5 w-3.5" />
-        <span className="absolute -top-0.5 -right-0.5 h-2 w-2 rounded-full bg-primary animate-pulse" />
-      </Button>
-    );
+  if (!variant) {
+    return null;
   }
 
-  if (status.state === "ready") {
-    return (
-      <Button
-        aria-label="Restart to update"
-        className={indicatorButtonClass}
-        onClick={onOpenUpdates}
-        size="icon"
-        variant="ghost"
-      >
-        <RefreshCw className="h-3.5 w-3.5" />
-        <span className="absolute -top-0.5 -right-0.5 h-2 w-2 rounded-full bg-emerald-500" />
-      </Button>
-    );
-  }
+  const { Icon, label, badgeColor } = variant;
 
-  return null;
+  return (
+    <Button
+      aria-label={label}
+      className={indicatorButtonClass}
+      onClick={onOpenUpdates}
+      size="sm"
+      variant="ghost"
+    >
+      <Icon className={iconClass} />
+      {label}
+      <span
+        className={`absolute -top-0.5 -right-0.5 h-2 w-2 rounded-full ${badgeColor} animate-pulse`}
+      />
+    </Button>
+  );
 }
diff --git a/desktop/src/features/settings/hooks/use-updater.ts b/desktop/src/features/settings/hooks/use-updater.ts
index 9e728ddcf..7e27986e4 100644
--- a/desktop/src/features/settings/hooks/use-updater.ts
+++ b/desktop/src/features/settings/hooks/use-updater.ts
@@ -13,14 +13,51 @@ export type UpdateStatus =
   | { state: "ready" }
   | { state: "error"; message: string };
 
+const TOAST_ID = "update-available";
+
+function toErrorMessage(err: unknown): string {
+  return err instanceof Error ? err.message : String(err);
+}
+
+function isUpdaterUnavailable(message: string): boolean {
+  return (
+    message.includes("plugin updater not found") ||
+    message.includes("not initialized")
+  );
+}
+
 export function useUpdater() {
   const [status, setStatus] = useState<UpdateStatus>({ state: "idle" });
   const updateRef = useRef<Update | null>(null);
 
   const closeUpdate = useCallback(async () => {
-    if (updateRef.current) {
-      await updateRef.current.close();
+    const current = updateRef.current;
+    if (current) {
       updateRef.current = null;
+      await current.close();
+    }
+  }, []);
+
+  const downloadAndInstall = useCallback(async () => {
+    try {
+      const update = updateRef.current;
+      if (!update) {
+        return;
+      }
+
+      toast.dismiss(TOAST_ID);
+      setStatus({ state: "downloading" });
+
+      await update.downloadAndInstall((event) => {
+        if (event.event === "Finished") {
+          setStatus({ state: "installing" });
+        }
+      });
+
+      updateRef.current = null;
+      setStatus({ state: "ready" });
+    } catch (err) {
+      setStatus({ state: "error", message: toErrorMessage(err) });
     }
   }, []);
 
@@ -34,58 +71,32 @@ export function useUpdater() {
         updateRef.current = update;
         setStatus({ state: "available", version: update.version });
         toast("Update Available", {
-          id: "update-available",
+          id: TOAST_ID,
           description: `Version ${update.version} is ready to download.`,
+          duration: Infinity,
+          action: {
+            label: "Download & install",
+            onClick: () => downloadAndInstall(),
+          },
         });
       } else {
         setStatus({ state: "up-to-date" });
       }
     } catch (err) {
-      const msg = err instanceof Error ? err.message : String(err);
-      if (
-        msg.includes("plugin updater not found") ||
-        msg.includes("not initialized")
-      ) {
+      const message = toErrorMessage(err);
+      if (isUpdaterUnavailable(message)) {
         setStatus({ state: "idle" });
         return;
       }
-      setStatus({ state: "error", message: msg });
+      setStatus({ state: "error", message });
     }
-  }, [closeUpdate]);
-
-  const downloadAndInstall = useCallback(async () => {
-    try {
-      const update = updateRef.current;
-      if (!update) {
-        setStatus({ state: "up-to-date" });
-        return;
-      }
-
-      setStatus({ state: "downloading" });
-
-      await update.downloadAndInstall((event) => {
-        if (event.event === "Finished") {
-          setStatus({ state: "installing" });
-        }
-      });
-
-      setStatus({ state: "ready" });
-    } catch (err) {
-      setStatus({
-        state: "error",
-        message: err instanceof Error ? err.message : String(err),
-      });
-    }
-  }, []);
+  }, [closeUpdate, downloadAndInstall]);
 
   const handleRelaunch = useCallback(async () => {
     try {
       await relaunch();
     } catch (err) {
-      setStatus({
-        state: "error",
-        message: err instanceof Error ? err.message : String(err),
-      });
+      setStatus({ state: "error", message: toErrorMessage(err) });
     }
   }, []);