diff --git a/apps/web/src/app/(authenticated)/usage/Messages.tsx b/apps/web/src/app/(authenticated)/usage/Messages.tsx
index 27f93e1cc9..f3bb448fd0 100644
--- a/apps/web/src/app/(authenticated)/usage/Messages.tsx
+++ b/apps/web/src/app/(authenticated)/usage/Messages.tsx
@@ -11,6 +11,7 @@ import { formatTimestamp } from '@/lib/formatters';
 import { useAutoScroll } from '@/hooks/useAutoScroll';
 import { CodeBlock } from '@/components/ui/CodeBlock';
 import { ToolUsageBadge } from '@/components/ui/ToolUsageBadge';
+import { TodoListDisplay } from '@/components/ui/TodoListDisplay';
 import { parseToolUsage } from '@/lib/toolUsageParser';
 
 // Custom component to render links as plain text to avoid broken/nonsensical links
@@ -317,12 +318,18 @@ export const Messages = ({
               );
             }
 
-            // For other tool messages, render only the tool usage badge in the space between bubbles
+            // For tool messages, render the tool usage badge and todo list if present
             if (isTool) {
               return (
-                <div key={message.id} className="py-2 pl-4">
-                  {message.toolUsage && (
-                    <ToolUsageBadge usage={message.toolUsage} />
+                <div key={message.id} className="py-2 space-y-3">
+                  {message.toolUsage?.todoData ? (
+                    <TodoListDisplay todos={message.toolUsage.todoData.todos} />
+                  ) : (
+                    message.toolUsage && (
+                      <div className="pl-4">
+                        <ToolUsageBadge usage={message.toolUsage} />
+                      </div>
+                    )
                   )}
                 </div>
               );
diff --git a/apps/web/src/components/ui/TodoListDisplay.test.tsx b/apps/web/src/components/ui/TodoListDisplay.test.tsx
new file mode 100644
index 0000000000..2be38b5922
--- /dev/null
+++ b/apps/web/src/components/ui/TodoListDisplay.test.tsx
@@ -0,0 +1,97 @@
+import { render, screen, fireEvent } from '@testing-library/react';
+import { TodoListDisplay, type TodoItem } from './TodoListDisplay';
+
+describe('TodoListDisplay', () => {
+  const mockTodos = [
+    {
+      id: '1',
+      content: 'Complete the feature',
+      status: 'completed' as const,
+    },
+    {
+      id: '2',
+      content: 'Write tests',
+      status: 'in_progress' as const,
+    },
+    {
+      id: '3',
+      content: 'Update documentation',
+      status: 'pending' as const,
+    },
+  ];
+
+  it('renders todo list with header and progress', () => {
+    render(<TodoListDisplay todos={mockTodos} />);
+
+    expect(screen.getByText('Todo List Updated')).toBeInTheDocument();
+    expect(screen.getByText('1/3')).toBeInTheDocument(); // completed/total
+  });
+
+  it('shows current task in collapsed view by default', () => {
+    render(<TodoListDisplay todos={mockTodos} />);
+
+    // Should show the in-progress task by default
+    expect(screen.getByText('Write tests')).toBeInTheDocument();
+    // Should not show other tasks in collapsed view
+    expect(screen.queryByText('Complete the feature')).not.toBeInTheDocument();
+    expect(screen.queryByText('Update documentation')).not.toBeInTheDocument();
+  });
+
+  it('shows all tasks when expanded', () => {
+    render(<TodoListDisplay todos={mockTodos} />);
+
+    // Click to expand
+    const expandButton = screen.getByRole('button');
+    fireEvent.click(expandButton);
+
+    // Should show all tasks
+    expect(screen.getByText('Complete the feature')).toBeInTheDocument();
+    expect(screen.getByText('Write tests')).toBeInTheDocument();
+    expect(screen.getByText('Update documentation')).toBeInTheDocument();
+  });
+
+  it('applies correct styling for completed items', () => {
+    render(<TodoListDisplay todos={mockTodos} />);
+
+    // Expand to see all items
+    const expandButton = screen.getByRole('button');
+    fireEvent.click(expandButton);
+
+    const completedItem = screen.getByText('Complete the feature');
+    expect(completedItem).toHaveClass('line-through');
+  });
+
+  it('shows pending task when no in-progress task exists', () => {
+    const todosWithoutInProgress = [
+      {
+        id: '1',
+        content: 'Complete the feature',
+        status: 'completed' as const,
+      },
+      {
+        id: '3',
+        content: 'Update documentation',
+        status: 'pending' as const,
+      },
+    ];
+
+    render(<TodoListDisplay todos={todosWithoutInProgress} />);
+
+    // Should show the pending task since no in-progress exists
+    expect(screen.getByText('Update documentation')).toBeInTheDocument();
+  });
+
+  it('renders nothing when todos array is empty', () => {
+    const { container } = render(<TodoListDisplay todos={[]} />);
+
+    expect(container.firstChild).toBeNull();
+  });
+
+  it('renders nothing when todos is undefined', () => {
+    const { container } = render(
+      <TodoListDisplay todos={undefined as unknown as TodoItem[]} />,
+    );
+
+    expect(container.firstChild).toBeNull();
+  });
+});
diff --git a/apps/web/src/components/ui/TodoListDisplay.tsx b/apps/web/src/components/ui/TodoListDisplay.tsx
new file mode 100644
index 0000000000..314db1cbb2
--- /dev/null
+++ b/apps/web/src/components/ui/TodoListDisplay.tsx
@@ -0,0 +1,133 @@
+import { useState } from 'react';
+import { ChevronRight } from 'lucide-react';
+import { cn } from '@/lib/utils';
+
+export type TodoItem = {
+  id: string;
+  content: string;
+  status: 'pending' | 'in_progress' | 'completed';
+};
+
+type TodoListDisplayProps = {
+  todos: TodoItem[];
+  className?: string;
+};
+
+const getStatusIcon = (status: TodoItem['status']) => {
+  switch (status) {
+    case 'completed':
+      return '●'; // Filled circle for completed
+    case 'in_progress':
+      return '●'; // Filled circle for in progress
+    case 'pending':
+      return '○'; // Empty circle for pending
+    default:
+      return '○';
+  }
+};
+
+const getStatusColor = (status: TodoItem['status']) => {
+  switch (status) {
+    case 'completed':
+      return 'text-green-500';
+    case 'in_progress':
+      return 'text-yellow-500';
+    case 'pending':
+      return 'text-gray-400';
+    default:
+      return 'text-gray-400';
+  }
+};
+
+export const TodoListDisplay = ({ todos, className }: TodoListDisplayProps) => {
+  const [isExpanded, setIsExpanded] = useState(false);
+
+  if (!todos || todos.length === 0) {
+    return null;
+  }
+
+  // Get counts for each status
+  const completed = todos.filter((t) => t.status === 'completed').length;
+
+  // Find the most relevant current task (first in-progress, or first pending if no in-progress)
+  const currentTask =
+    todos.find((t) => t.status === 'in_progress') ||
+    todos.find((t) => t.status === 'pending');
+
+  return (
+    <div
+      className={cn(
+        'rounded-lg bg-secondary/10 border border-border/50 p-3 space-y-2',
+        className,
+      )}
+    >
+      <button
+        onClick={() => setIsExpanded(!isExpanded)}
+        className="flex items-center gap-2 w-full text-left hover:bg-secondary/20 rounded p-1 -m-1 transition-colors"
+      >
+        <ChevronRight
+          className={cn(
+            'h-3 w-3 text-muted-foreground transition-transform',
+            isExpanded && 'rotate-90',
+          )}
+        />
+        <div className="text-sm font-medium text-muted-foreground">
+          Todo List Updated
+        </div>
+        <div className="text-xs text-muted-foreground/70 ml-auto">
+          {completed}/{todos.length}
+        </div>
+      </button>
+
+      {/* Collapsed view - show current task */}
+      {!isExpanded && currentTask && (
+        <div className="flex items-start gap-2 text-sm pl-5">
+          <span
+            className={cn(
+              'mt-0.5 select-none',
+              getStatusColor(currentTask.status),
+            )}
+          >
+            {getStatusIcon(currentTask.status)}
+          </span>
+          <span
+            className={cn(
+              'leading-relaxed',
+              currentTask.status === 'completed' &&
+                'line-through text-muted-foreground/70',
+            )}
+          >
+            {currentTask.content}
+          </span>
+        </div>
+      )}
+
+      {/* Expanded view - show all tasks */}
+      {isExpanded && (
+        <ul className="space-y-1.5 pl-5">
+          {todos.map((todo) => (
+            <li key={todo.id} className="flex items-start gap-2 text-sm">
+              <span
+                className={cn(
+                  'mt-0.5 select-none',
+                  getStatusColor(todo.status),
+                )}
+              >
+                {getStatusIcon(todo.status)}
+              </span>
+              <span
+                className={cn(
+                  'leading-relaxed',
+                  todo.status === 'completed' &&
+                    'line-through text-muted-foreground/70',
+                )}
+              >
+                {todo.content}
+              </span>
+            </li>
+          ))}
+        </ul>
+      )}
+    </div>
+  );
+};
diff --git a/apps/web/src/lib/toolUsageParser.ts b/apps/web/src/lib/toolUsageParser.ts
index 56a305393f..999e955931 100644
--- a/apps/web/src/lib/toolUsageParser.ts
+++ b/apps/web/src/lib/toolUsageParser.ts
@@ -5,6 +5,13 @@
 export type ToolUsage = {
   action: string;
   details?: string;
+  todoData?: {
+    todos: Array<{
+      id: string;
+      content: string;
+      status: 'pending' | 'in_progress' | 'completed';
+    }>;
+  };
 };
 
 /**
@@ -108,6 +115,21 @@ export function extractToolUsageFromAsk(message: {
           action: 'Edited',
           details: path,
         };
+      case 'updateTodoList':
+        // Handle todo list updates
+        if (toolData.todos && Array.isArray(toolData.todos)) {
+          return {
+            action: 'Updated',
+            details: 'todo list',
+            todoData: {
+              todos: toolData.todos,
+            },
+          };
+        }
+        return {
+          action: 'Updated',
+          details: 'todo list',
+        };
       default:
         return null;
     }