diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index b024f41d..aaa34e0d 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## [Unreleased]
 
+### Fixed
+
+- Fixed interactive auto-retry status updates to show a live countdown during backoff instead of a static retry delay message ([#3187](https://github.com/badlogic/pi-mono/issues/3187))
+
 ## [0.67.2] - 2026-04-14
 
 ### New Features
diff --git a/packages/coding-agent/src/modes/interactive/interactive-mode.ts b/packages/coding-agent/src/modes/interactive/interactive-mode.ts
index a1aaadaa..d71b9dd6 100644
--- a/packages/coding-agent/src/modes/interactive/interactive-mode.ts
+++ b/packages/coding-agent/src/modes/interactive/interactive-mode.ts
@@ -77,6 +77,7 @@ import { BashExecutionComponent } from "./components/bash-execution.js";
 import { BorderedLoader } from "./components/bordered-loader.js";
 import { BranchSummaryMessageComponent } from "./components/branch-summary-message.js";
 import { CompactionSummaryMessageComponent } from "./components/compaction-summary-message.js";
+import { CountdownTimer } from "./components/countdown-timer.js";
 import { CustomEditor } from "./components/custom-editor.js";
 import { CustomMessageComponent } from "./components/custom-message.js";
 import { DaxnutsComponent } from "./components/daxnuts.js";
@@ -227,6 +228,7 @@ export class InteractiveMode {
 
 	// Auto-retry state
 	private retryLoader: Loader | undefined = undefined;
+	private retryCountdown: CountdownTimer | undefined = undefined;
 	private retryEscapeHandler?: () => void;
 
 	// Messages queued while compaction is running
@@ -2337,6 +2339,10 @@ export class InteractiveMode {
 					this.defaultEditor.onEscape = this.retryEscapeHandler;
 					this.retryEscapeHandler = undefined;
 				}
+				if (this.retryCountdown) {
+					this.retryCountdown.dispose();
+					this.retryCountdown = undefined;
+				}
 				if (this.retryLoader) {
 					this.retryLoader.stop();
 					this.retryLoader = undefined;
@@ -2593,12 +2599,24 @@ export class InteractiveMode {
 				};
 				// Show retry indicator
 				this.statusContainer.clear();
-				const delaySeconds = Math.round(event.delayMs / 1000);
+				this.retryCountdown?.dispose();
+				const retryMessage = (seconds: number) =>
+					`Retrying (${event.attempt}/${event.maxAttempts}) in ${seconds}s... (${keyText("app.interrupt")} to cancel)`;
 				this.retryLoader = new Loader(
 					this.ui,
 					(spinner) => theme.fg("warning", spinner),
 					(text) => theme.fg("muted", text),
-					`Retrying (${event.attempt}/${event.maxAttempts}) in ${delaySeconds}s... (${keyText("app.interrupt")} to cancel)`,
+					retryMessage(Math.ceil(event.delayMs / 1000)),
+				);
+				this.retryCountdown = new CountdownTimer(
+					event.delayMs,
+					this.ui,
+					(seconds) => {
+						this.retryLoader?.setMessage(retryMessage(seconds));
+					},
+					() => {
+						this.retryCountdown = undefined;
+					},
 				);
 				this.statusContainer.addChild(this.retryLoader);
 				this.ui.requestRender();
@@ -2611,6 +2629,10 @@ export class InteractiveMode {
 					this.defaultEditor.onEscape = this.retryEscapeHandler;
 					this.retryEscapeHandler = undefined;
 				}
+				if (this.retryCountdown) {
+					this.retryCountdown.dispose();
+					this.retryCountdown = undefined;
+				}
 				// Stop loader
 				if (this.retryLoader) {
 					this.retryLoader.stop();