diff --git a/implementation-plans/_index.md b/implementation-plans/_index.md
index 97bd704..4d28889 100644
--- a/implementation-plans/_index.md
+++ b/implementation-plans/_index.md
@@ -9,3 +9,4 @@
 | #5    | Chat page layout and message list component            | COMPLETED    | [issue-005.md](issue-005.md) |
 | #6    | Message input with send and keyboard shortcuts         | COMPLETED    | [issue-006.md](issue-006.md) |
 | #7    | Streaming response rendering                          | COMPLETED    | [issue-007.md](issue-007.md) |
+| #8    | Orchestration state progress indicator                 | COMPLETED    | [issue-008.md](issue-008.md) |
diff --git a/implementation-plans/issue-008.md b/implementation-plans/issue-008.md
new file mode 100644
index 0000000..3cfc337
--- /dev/null
+++ b/implementation-plans/issue-008.md
@@ -0,0 +1,16 @@
+---
+---
+
+# Issue #8: Orchestration state progress indicator
+
+**Status:** COMPLETED
+**Issue:** https://git.shahondin1624.de/llm-multiverse/llm-multiverse-ui/issues/8
+**Branch:** `feature/issue-8-progress-indicator`
+
+## Acceptance Criteria
+
+- [x] Stepper/progress bar component showing orchestration phases
+- [x] Phases: Decomposing → Dispatching → Executing → Compacting → Complete
+- [x] Updates in real-time as OrchestrationState changes in the stream
+- [x] Current phase visually highlighted, completed phases marked
+- [x] Smooth transitions between states
diff --git a/src/lib/components/OrchestrationProgress.svelte b/src/lib/components/OrchestrationProgress.svelte
new file mode 100644
index 0000000..d6b2836
--- /dev/null
+++ b/src/lib/components/OrchestrationProgress.svelte
@@ -0,0 +1,56 @@
+<script lang="ts">
+	import { OrchestrationState } from '$lib/proto/llm_multiverse/v1/orchestrator_pb';
+
+	let { state }: { state: OrchestrationState } = $props();
+
+	const phases = [
+		{ state: OrchestrationState.DECOMPOSING, label: 'Decomposing' },
+		{ state: OrchestrationState.DISPATCHING, label: 'Dispatching' },
+		{ state: OrchestrationState.EXECUTING, label: 'Executing' },
+		{ state: OrchestrationState.COMPACTING, label: 'Compacting' },
+		{ state: OrchestrationState.COMPLETE, label: 'Complete' }
+	];
+
+	function getStatus(phaseState: OrchestrationState): 'completed' | 'active' | 'pending' {
+		if (state === OrchestrationState.UNSPECIFIED) return 'pending';
+		if (phaseState < state) return 'completed';
+		if (phaseState === state) return 'active';
+		return 'pending';
+	}
+</script>
+
+<div class="mx-4 mb-2 rounded-xl bg-gray-50 px-4 py-3">
+	<div class="flex items-center justify-between">
+		{#each phases as phase, i (phase.state)}
+			{@const status = getStatus(phase.state)}
+			<div class="flex flex-col items-center gap-1">
+				<div
+					class="flex h-7 w-7 items-center justify-center rounded-full text-xs font-medium transition-all duration-300
+						{status === 'completed'
+						? 'bg-green-500 text-white'
+						: status === 'active'
+							? 'bg-blue-500 text-white ring-2 ring-blue-300 ring-offset-1'
+							: 'bg-gray-200 text-gray-500'}"
+				>
+					{#if status === 'completed'}
+						&#10003;
+					{:else}
+						{i + 1}
+					{/if}
+				</div>
+				<span
+					class="text-xs transition-colors duration-300
+						{status === 'active' ? 'font-medium text-blue-600' : 'text-gray-500'}"
+				>
+					{phase.label}
+				</span>
+			</div>
+			{#if i < phases.length - 1}
+				<div
+					class="mb-5 h-0.5 flex-1 transition-colors duration-300
+						{getStatus(phases[i + 1].state) !== 'pending' ? 'bg-green-500' : 'bg-gray-200'}"
+				></div>
+			{/if}
+		{/each}
+	</div>
+</div>
diff --git a/src/routes/chat/+page.svelte b/src/routes/chat/+page.svelte
index 92bb49f..c86b2b1 100644
--- a/src/routes/chat/+page.svelte
+++ b/src/routes/chat/+page.svelte
@@ -2,15 +2,19 @@
 	import type { ChatMessage } from '$lib/types';
 	import MessageList from '$lib/components/MessageList.svelte';
 	import MessageInput from '$lib/components/MessageInput.svelte';
+	import OrchestrationProgress from '$lib/components/OrchestrationProgress.svelte';
 	import { processRequest, OrchestratorError } from '$lib/services/orchestrator';
+	import { OrchestrationState } from '$lib/proto/llm_multiverse/v1/orchestrator_pb';
 
 	let messages: ChatMessage[] = $state([]);
 	let isStreaming = $state(false);
 	let error: string | null = $state(null);
 	let sessionId = $state(crypto.randomUUID());
+	let orchestrationState: OrchestrationState = $state(OrchestrationState.UNSPECIFIED);
 
 	async function handleSend(content: string) {
 		error = null;
+		orchestrationState = OrchestrationState.UNSPECIFIED;
 
 		const userMessage: ChatMessage = {
 			id: crypto.randomUUID(),
@@ -32,6 +36,7 @@
 
 		try {
 			for await (const response of processRequest(sessionId, content)) {
+				orchestrationState = response.state;
 				const idx = messages.length - 1;
 				messages[idx] = {
 					...messages[idx],
@@ -44,7 +49,6 @@
 					? `Error (${err.code}): ${err.message}`
 					: 'An unexpected error occurred';
 			error = msg;
-			// Update the assistant message with the error
 			const idx = messages.length - 1;
 			messages[idx] = {
 				...messages[idx],
@@ -63,6 +67,10 @@
 
 	<MessageList {messages} />
 
+	{#if isStreaming}
+		<OrchestrationProgress state={orchestrationState} />
+	{/if}
+
 	{#if isStreaming && messages.length > 0 && messages[messages.length - 1].content === ''}
 		<div class="flex justify-start px-4 pb-2">
 			<div class="flex items-center gap-1.5 rounded-2xl bg-gray-200 px-4 py-2.5">