diff --git a/src/app/actions.rs b/src/app/actions.rs
index 5c4c2f75..0709ed4c 100644
--- a/src/app/actions.rs
+++ b/src/app/actions.rs
@@ -3113,7 +3113,8 @@ impl AppState {
         let sound = sound_for_toast_kind(kind, suppress_active_tab_notifications)
             .filter(|_| self.sound.allows(known_agent));
         let build_toast = || {
-            let workspace_label = self.workspaces[ws_idx].display_name();
+            let workspace_label =
+                self.workspaces[ws_idx].display_name_from_terminals(&self.terminals);
             let context =
                 notification_context(&self.workspaces[ws_idx], &workspace_label, ws_idx, pane_id);
             ToastNotification {
diff --git a/src/app/mod.rs b/src/app/mod.rs
index 5e007091..c2d479b3 100644
--- a/src/app/mod.rs
+++ b/src/app/mod.rs
@@ -2412,6 +2412,21 @@ mod tests {
         assert!(app.state.toast.is_none());
     }
 
+    #[test]
+    fn unchanged_git_status_drain_has_no_render_impact() {
+        let mut app = test_app();
+        app.git_refresh_in_flight = true;
+        app.event_tx
+            .try_send(AppEvent::GitStatusRefreshed {
+                results: Vec::new(),
+                cache_updates: Vec::new(),
+            })
+            .unwrap();
+
+        assert!(!app.drain_internal_events());
+        assert!(!app.git_refresh_in_flight);
+    }
+
     #[test]
     fn internal_event_drain_limits_work_per_tick() {
         let mut app = test_app();
diff --git a/src/app/runtime.rs b/src/app/runtime.rs
index 02f3e947..180c3cef 100644
--- a/src/app/runtime.rs
+++ b/src/app/runtime.rs
@@ -586,26 +586,33 @@ impl App {
 
     pub(crate) fn drain_internal_events(&mut self) -> bool {
         self.drain_internal_events_up_to(super::APP_EVENT_DRAIN_LIMIT)
+            .1
     }
 
     pub(crate) fn drain_all_internal_events(&mut self) -> bool {
-        let mut had_event = false;
-        while self.drain_internal_events_up_to(super::APP_EVENT_DRAIN_LIMIT) {
-            had_event = true;
+        let mut changed = false;
+        loop {
+            let (had_event, batch_changed) =
+                self.drain_internal_events_up_to(super::APP_EVENT_DRAIN_LIMIT);
+            changed |= batch_changed;
+            if !had_event {
+                break;
+            }
         }
-        had_event
+        changed
     }
 
-    fn drain_internal_events_up_to(&mut self, limit: usize) -> bool {
+    fn drain_internal_events_up_to(&mut self, limit: usize) -> (bool, bool) {
         let mut had_event = false;
+        let mut changed = false;
         for _ in 0..limit {
             let Ok(ev) = self.event_rx.try_recv() else {
                 break;
             };
             had_event = true;
-            self.handle_internal_event_with_prefix_sync(ev);
+            changed |= self.handle_internal_event_with_prefix_sync(ev);
         }
-        had_event
+        (had_event, changed)
     }
 }
 
diff --git a/src/ui/sidebar.rs b/src/ui/sidebar.rs
index 0ecfb652..c7da990a 100644
--- a/src/ui/sidebar.rs
+++ b/src/ui/sidebar.rs
@@ -197,12 +197,12 @@ fn workspace_row_height(app: &AppState, ws: &crate::workspace::Workspace, indent
     let (state, seen) = ws.aggregate_state(&app.terminals);
     let label = if indented {
         grouped_child_display_label(
-            &ws.display_name(),
+            &ws.display_name_from_terminals(&app.terminals),
             ws.branch().as_deref(),
             ws.custom_name.is_some(),
         )
     } else {
-        ws.display_name()
+        ws.display_name_from_terminals(&app.terminals)
     };
     let token_values = ws.metadata_tokens.values();
     tokens::space_rows(
diff --git a/src/workspace.rs b/src/workspace.rs
index 62864536..546a294e 100644
--- a/src/workspace.rs
+++ b/src/workspace.rs
@@ -1093,16 +1093,31 @@ impl Workspace {
             .or_else(|| Some(self.identity_cwd.clone()))
     }
 
+    #[cfg(test)]
     pub fn display_name(&self) -> String {
         if let Some(name) = &self.custom_name {
             return name.clone();
         }
 
-        if self.cached_identity_cwd == self.identity_cwd {
-            self.cached_auto_label.clone()
-        } else {
-            fallback_label_from_cwd(&self.identity_cwd)
+        self.automatic_display_name_for_cwd(&self.identity_cwd)
+    }
+
+    pub(crate) fn display_name_from_terminals(
+        &self,
+        terminals: &HashMap<TerminalId, TerminalState>,
+    ) -> String {
+        if let Some(name) = &self.custom_name {
+            return name.clone();
         }
+
+        let cwd = self
+            .tabs
+            .first()
+            .and_then(|tab| tab.terminal_id(tab.root_pane))
+            .and_then(|terminal_id| terminals.get(terminal_id))
+            .map(|terminal| &terminal.cwd)
+            .unwrap_or(&self.identity_cwd);
+        self.automatic_display_name_for_cwd(cwd)
     }
 
     pub fn display_name_from(
@@ -1115,16 +1130,18 @@ impl Workspace {
         }
 
         self.resolved_identity_cwd_from(terminals, terminal_runtimes)
-            .map(|cwd| {
-                if cwd == self.cached_identity_cwd {
-                    self.cached_auto_label.clone()
-                } else {
-                    fallback_label_from_cwd(&cwd)
-                }
-            })
+            .map(|cwd| self.automatic_display_name_for_cwd(&cwd))
             .unwrap_or_else(|| "workspace".into())
     }
 
+    fn automatic_display_name_for_cwd(&self, cwd: &std::path::Path) -> String {
+        if cwd == self.cached_identity_cwd {
+            self.cached_auto_label.clone()
+        } else {
+            fallback_label_from_cwd(cwd)
+        }
+    }
+
     pub fn branch(&self) -> Option<String> {
         self.cached_git_branch.clone()
     }
@@ -1642,6 +1659,24 @@ mod tests {
         assert_eq!(ws.display_name(), "cached-repo");
     }
 
+    #[test]
+    fn terminal_aware_display_name_uses_latest_admitted_identity_cache() {
+        let mut ws = Workspace::test_new("ignored");
+        let root_pane = ws.tabs[0].root_pane;
+        let terminal_id = ws.tabs[0].terminal_id(root_pane).unwrap().clone();
+        ws.custom_name = None;
+        ws.identity_cwd = PathBuf::from("/old/workspace");
+        ws.cached_identity_cwd = PathBuf::from("/new/repo/deep");
+        ws.cached_auto_label = "repo".into();
+        let terminals = HashMap::from([(
+            terminal_id.clone(),
+            TerminalState::new(terminal_id, PathBuf::from("/new/repo/deep")),
+        )]);
+
+        assert_eq!(ws.display_name_from_terminals(&terminals), "repo");
+        assert_eq!(ws.display_name(), "workspace");
+    }
+
     #[test]
     fn workspace_identity_follows_first_tab_root_pane_cwd() {
         let mut ws = Workspace::test_new("ignored");