diff --git a/packages/cli/src/ui/components/Composer.tsx b/packages/cli/src/ui/components/Composer.tsx
index 263988686c3..c5bda6bea92 100644
--- a/packages/cli/src/ui/components/Composer.tsx
+++ b/packages/cli/src/ui/components/Composer.tsx
@@ -16,7 +16,6 @@ import { useUIActions } from '../contexts/UIActionsContext.js';
 import { useVimMode } from '../contexts/VimModeContext.js';
 import { useConfig } from '../contexts/ConfigContext.js';
 import { StreamingState, type HistoryItemToolGroup } from '../types.js';
-import { ConfigInitDisplay } from '../components/ConfigInitDisplay.js';
 import { FeedbackDialog } from '../FeedbackDialog.js';
 import { t } from '../../i18n/index.js';
 
@@ -104,8 +103,6 @@ export const Composer = () => {
         />
       )}
 
-      {!uiState.isConfigInitialized && <ConfigInitDisplay />}
-
       <QueuedMessageDisplay messageQueue={uiState.messageQueue} />
 
       {uiState.isFeedbackDialogOpen && <FeedbackDialog />}
diff --git a/packages/cli/src/ui/components/Footer.test.tsx b/packages/cli/src/ui/components/Footer.test.tsx
index 585f47ecec2..c405dbe3eef 100644
--- a/packages/cli/src/ui/components/Footer.test.tsx
+++ b/packages/cli/src/ui/components/Footer.test.tsx
@@ -78,6 +78,7 @@ const createMockUIState = (overrides: Partial<UIState> = {}): UIState =>
     contextFileNames: [],
     showToolDescriptions: false,
     ideContextState: undefined,
+    isConfigInitialized: true,
     ...overrides,
   }) as UIState;
 
@@ -149,6 +150,43 @@ describe('<Footer />', () => {
     });
   });
 
+  describe('config init message', () => {
+    it('shows init status in place of the hint while config is initializing', () => {
+      const { lastFrame } = renderWithWidth(
+        120,
+        createMockUIState({ isConfigInitialized: false }),
+      );
+      const frame = lastFrame()!;
+      expect(frame).toContain('Initializing...');
+      expect(frame).not.toContain('? for shortcuts');
+    });
+
+    it('falls back to the hint once config is initialized', () => {
+      const { lastFrame } = renderWithWidth(
+        120,
+        createMockUIState({ isConfigInitialized: true }),
+      );
+      const frame = lastFrame()!;
+      expect(frame).not.toContain('Initializing...');
+      expect(frame).toContain('? for shortcuts');
+    });
+
+    // Init progress is more useful than zero layout shift: we show it even
+    // when a custom status line is active, accepting that the row shrinks
+    // by one line once init completes. Still strictly better than the
+    // original bug (a 2-row residual above the input in the default case).
+    it('shows init status even when a custom status line is active', () => {
+      useStatusLineMock.mockReturnValue({ lines: ['model-name ctx:34%'] });
+      const { lastFrame } = renderWithWidth(
+        120,
+        createMockUIState({ isConfigInitialized: false }),
+      );
+      const frame = lastFrame()!;
+      expect(frame).toContain('model-name ctx:34%');
+      expect(frame).toContain('Initializing...');
+    });
+  });
+
   describe('footer rendering (golden snapshots)', () => {
     it('renders complete footer on wide terminal', () => {
       const { lastFrame } = renderWithWidth(120, createMockUIState());
diff --git a/packages/cli/src/ui/components/Footer.tsx b/packages/cli/src/ui/components/Footer.tsx
index abe7e456949..1debdcb9ca6 100644
--- a/packages/cli/src/ui/components/Footer.tsx
+++ b/packages/cli/src/ui/components/Footer.tsx
@@ -15,10 +15,12 @@ import { ShellModeIndicator } from './ShellModeIndicator.js';
 import { isNarrowWidth } from '../utils/isNarrowWidth.js';
 
 import { useStatusLine } from '../hooks/useStatusLine.js';
+import { useConfigInitMessage } from '../hooks/useConfigInitMessage.js';
 import { useUIState } from '../contexts/UIStateContext.js';
 import { useConfig } from '../contexts/ConfigContext.js';
 import { useVimMode } from '../contexts/VimModeContext.js';
 import { ApprovalMode } from '@qwen-code/qwen-code-core';
+import { GeminiSpinner } from './GeminiRespondingSpinner.js';
 import { t } from '../../i18n/index.js';
 
 /**
@@ -52,6 +54,7 @@ export const Footer: React.FC = () => {
   const config = useConfig();
   const { vimEnabled, vimMode } = useVimMode();
   const { lines: statusLineLines } = useStatusLine();
+  const configInitMessage = useConfigInitMessage(uiState.isConfigInitialized);
   const dreamRunning = useDreamRunning(config.getProjectRoot());
 
   const { promptTokenCount, showAutoAcceptIndicator } = {
@@ -82,7 +85,15 @@ export const Footer: React.FC = () => {
   // occupies the footer, so the hint is redundant). Matches upstream behavior.
   const suppressHint = statusLineLines.length > 0;
 
-  // Left bottom row: high-priority messages > approval mode > hint.
+  // MCP init progress lives in this row (not a standalone component above the
+  // input) so the live area's height is constant in the default case, avoiding
+  // the residual-blank-line artifact left behind when a separate block unmounts.
+  // When a custom status line is active, the row shrinks by 1 on transition to
+  // ready — a one-time, small regression preferred over hiding init progress.
+  //
+  // `configInitMessage` is placed ahead of `showAutoAcceptIndicator` so users
+  // launched with YOLO / auto-accept-edits still see the ~1s startup progress;
+  // the approval-mode indicator takes over as soon as init finishes.
   const leftBottomContent = uiState.ctrlCPressedOnce ? (
     <Text color={theme.status.warning}>{t('Press Ctrl+C again to exit.')}</Text>
   ) : uiState.ctrlDPressedOnce ? (
@@ -93,6 +104,10 @@ export const Footer: React.FC = () => {
     <Text color={theme.text.secondary}>-- INSERT --</Text>
   ) : uiState.shellModeActive ? (
     <ShellModeIndicator />
+  ) : configInitMessage ? (
+    <Text color={theme.text.secondary}>
+      <GeminiSpinner /> {configInitMessage}
+    </Text>
   ) : showAutoAcceptIndicator !== undefined &&
     showAutoAcceptIndicator !== ApprovalMode.DEFAULT ? (
     <AutoAcceptIndicator approvalMode={showAutoAcceptIndicator} />
diff --git a/packages/cli/src/ui/hooks/useConfigInitMessage.test.ts b/packages/cli/src/ui/hooks/useConfigInitMessage.test.ts
new file mode 100644
index 00000000000..5ab5393d54b
--- /dev/null
+++ b/packages/cli/src/ui/hooks/useConfigInitMessage.test.ts
@@ -0,0 +1,111 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { describe, it, expect, afterEach } from 'vitest';
+import { renderHook, act } from '@testing-library/react';
+import { MCPServerStatus, type McpClient } from '@qwen-code/qwen-code-core';
+import { appEvents } from '../../utils/events.js';
+import { useConfigInitMessage } from './useConfigInitMessage.js';
+
+function makeClient(status: MCPServerStatus): McpClient {
+  return { getStatus: () => status } as unknown as McpClient;
+}
+
+describe('useConfigInitMessage', () => {
+  afterEach(() => {
+    appEvents.removeAllListeners('mcp-client-update');
+  });
+
+  it('returns null once config is initialized', () => {
+    const { result } = renderHook(() => useConfigInitMessage(true));
+    expect(result.current).toBeNull();
+  });
+
+  it('defaults to "Initializing..." while config is still initializing', () => {
+    const { result } = renderHook(() => useConfigInitMessage(false));
+    expect(result.current).toBe('Initializing...');
+  });
+
+  it('reports connection progress as MCP clients connect', () => {
+    const { result } = renderHook(() => useConfigInitMessage(false));
+
+    const clients = new Map<string, McpClient>([
+      ['a', makeClient(MCPServerStatus.CONNECTED)],
+      ['b', makeClient(MCPServerStatus.DISCONNECTED)],
+      ['c', makeClient(MCPServerStatus.DISCONNECTED)],
+    ]);
+
+    act(() => {
+      appEvents.emit('mcp-client-update', clients);
+    });
+    expect(result.current).toBe('Connecting to MCP servers... (1/3)');
+
+    clients.set('b', makeClient(MCPServerStatus.CONNECTED));
+    act(() => {
+      appEvents.emit('mcp-client-update', clients);
+    });
+    expect(result.current).toBe('Connecting to MCP servers... (2/3)');
+  });
+
+  it('falls back to "Initializing..." when the clients map is empty', () => {
+    const { result } = renderHook(() => useConfigInitMessage(false));
+
+    act(() => {
+      appEvents.emit(
+        'mcp-client-update',
+        new Map<string, McpClient>([
+          ['a', makeClient(MCPServerStatus.CONNECTED)],
+        ]),
+      );
+    });
+    expect(result.current).toBe('Connecting to MCP servers... (1/1)');
+
+    act(() => {
+      appEvents.emit('mcp-client-update', new Map<string, McpClient>());
+    });
+    expect(result.current).toBe('Initializing...');
+  });
+
+  it('flips to null as soon as config finishes initializing', () => {
+    const { result, rerender } = renderHook(
+      ({ initialized }: { initialized: boolean }) =>
+        useConfigInitMessage(initialized),
+      { initialProps: { initialized: false } },
+    );
+
+    act(() => {
+      appEvents.emit(
+        'mcp-client-update',
+        new Map<string, McpClient>([
+          ['a', makeClient(MCPServerStatus.CONNECTED)],
+        ]),
+      );
+    });
+    expect(result.current).toBe('Connecting to MCP servers... (1/1)');
+
+    rerender({ initialized: true });
+    expect(result.current).toBeNull();
+  });
+
+  it('unsubscribes from mcp-client-update on unmount', () => {
+    const { unmount } = renderHook(() => useConfigInitMessage(false));
+    expect(appEvents.listenerCount('mcp-client-update')).toBe(1);
+    unmount();
+    expect(appEvents.listenerCount('mcp-client-update')).toBe(0);
+  });
+
+  it('unsubscribes when config transitions to initialized', () => {
+    const { rerender } = renderHook(
+      ({ initialized }: { initialized: boolean }) =>
+        useConfigInitMessage(initialized),
+      { initialProps: { initialized: false } },
+    );
+    expect(appEvents.listenerCount('mcp-client-update')).toBe(1);
+
+    rerender({ initialized: true });
+    expect(appEvents.listenerCount('mcp-client-update')).toBe(0);
+  });
+});
diff --git a/packages/cli/src/ui/components/ConfigInitDisplay.tsx b/packages/cli/src/ui/hooks/useConfigInitMessage.ts
similarity index 56%
rename from packages/cli/src/ui/components/ConfigInitDisplay.tsx
rename to packages/cli/src/ui/hooks/useConfigInitMessage.ts
index 264eeeafa47..ffc12d24485 100644
--- a/packages/cli/src/ui/components/ConfigInitDisplay.tsx
+++ b/packages/cli/src/ui/hooks/useConfigInitMessage.ts
@@ -5,19 +5,23 @@
  */
 
 import { useEffect, useState } from 'react';
-import { appEvents } from './../../utils/events.js';
-import { Box, Text } from 'ink';
-import { useConfig } from '../contexts/ConfigContext.js';
+import { appEvents } from '../../utils/events.js';
 import { type McpClient, MCPServerStatus } from '@qwen-code/qwen-code-core';
-import { GeminiSpinner } from './GeminiRespondingSpinner.js';
-import { theme } from '../semantic-colors.js';
 import { t } from '../../i18n/index.js';
 
-export const ConfigInitDisplay = () => {
-  const config = useConfig();
-  const [message, setMessage] = useState(t('Initializing...'));
+// Tracks MCP connection progress. Returns the current status string while
+// config is initializing, or `null` once complete so callers can fall
+// through to their default content.
+export function useConfigInitMessage(
+  isConfigInitialized: boolean,
+): string | null {
+  const [message, setMessage] = useState<string>(() => t('Initializing...'));
 
   useEffect(() => {
+    if (isConfigInitialized) {
+      return;
+    }
+
     const onChange = (clients?: Map<string, McpClient>) => {
       if (!clients || clients.size === 0) {
         setMessage(t('Initializing...'));
@@ -41,13 +45,10 @@ export const ConfigInitDisplay = () => {
     return () => {
       appEvents.off('mcp-client-update', onChange);
     };
-  }, [config]);
+  }, [isConfigInitialized]);
 
-  return (
-    <Box marginTop={1}>
-      <Text>
-        <GeminiSpinner /> <Text color={theme.text.primary}>{message}</Text>
-      </Text>
-    </Box>
-  );
-};
+  // Gating on isConfigInitialized (rather than clearing state from the effect)
+  // ensures the first render that flips to initialized returns null without
+  // a transient frame still showing the old message.
+  return isConfigInitialized ? null : message;
+}