diff --git a/src/renderer/src/App.tsx b/src/renderer/src/App.tsx
index 7b1ba0538d7..d4479019ce5 100644
--- a/src/renderer/src/App.tsx
+++ b/src/renderer/src/App.tsx
@@ -14,7 +14,6 @@ import Landing from './components/Landing'
 import Settings from './components/settings/Settings'
 import RightSidebar from './components/right-sidebar'
 import QuickOpen from './components/QuickOpen'
-import UpdateReminder from './components/UpdateReminder'
 import { useGitStatusPolling } from './components/right-sidebar/useGitStatusPolling'
 import {
   setRuntimeGraphStoreStateGetter,
@@ -436,7 +435,6 @@ function App(): React.JSX.Element {
         {showSidebar && rightSidebarOpen ? <RightSidebar /> : null}
       </div>
       <QuickOpen />
-      <UpdateReminder />
       <Toaster closeButton toastOptions={{ className: 'font-sans text-sm' }} />
     </div>
   )
diff --git a/src/renderer/src/components/UpdateReminder.tsx b/src/renderer/src/components/UpdateReminder.tsx
deleted file mode 100644
index 9640e89b582..00000000000
--- a/src/renderer/src/components/UpdateReminder.tsx
+++ /dev/null
@@ -1,71 +0,0 @@
-import { X } from 'lucide-react'
-import { Button } from '@/components/ui/button'
-import { useAppStore } from '@/store'
-import type { UpdateStatus } from '../../../shared/types'
-
-function getReleaseUrl(
-  status: Extract<UpdateStatus, { state: 'available' | 'downloaded' }>
-): string {
-  return status.releaseUrl ?? `https://github.com/stablyai/orca/releases/tag/v${status.version}`
-}
-
-export default function UpdateReminder(): React.JSX.Element | null {
-  const updateStatus = useAppStore((s) => s.updateStatus)
-  const dismissedUpdateVersion = useAppStore((s) => s.dismissedUpdateVersion)
-  const dismissUpdate = useAppStore((s) => s.dismissUpdate)
-
-  if (updateStatus.state !== 'available' && updateStatus.state !== 'downloaded') {
-    return null
-  }
-
-  if (updateStatus.state === 'available' && updateStatus.version === dismissedUpdateVersion) {
-    return null
-  }
-
-  const isDownloaded = updateStatus.state === 'downloaded'
-  const label = isDownloaded ? 'Restart to update' : 'Update available'
-
-  return (
-    // Persistent bottom-right toast, positioned to sit above the Sonner toaster.
-    <div className="fixed bottom-14 right-4 z-50 flex w-72 items-center gap-2 rounded-[var(--radius)] border border-border bg-popover px-3 py-2.5 text-popover-foreground shadow-md">
-      <div className="min-w-0 flex-1">
-        <p className="text-sm font-medium">
-          {label} <span className="text-muted-foreground">v{updateStatus.version}</span>
-        </p>
-      </div>
-      <div className="flex shrink-0 items-center gap-1.5">
-        <a
-          href={getReleaseUrl(updateStatus)}
-          target="_blank"
-          rel="noopener noreferrer"
-          className="text-xs text-muted-foreground underline-offset-2 hover:underline"
-        >
-          Notes
-        </a>
-        <Button
-          variant="default"
-          size="sm"
-          className="h-7 px-2.5 text-xs"
-          onClick={() => {
-            if (isDownloaded) {
-              void window.api.updater.quitAndInstall()
-            } else {
-              void window.api.updater.download()
-            }
-          }}
-        >
-          {isDownloaded ? 'Restart' : 'Install'}
-        </Button>
-        {!isDownloaded ? (
-          <button
-            onClick={() => dismissUpdate()}
-            aria-label="Dismiss"
-            className="ml-0.5 rounded-sm p-0.5 text-muted-foreground hover:text-foreground"
-          >
-            <X className="size-3.5" />
-          </button>
-        ) : null}
-      </div>
-    </div>
-  )
-}
diff --git a/src/renderer/src/hooks/update-toast-controller.test.ts b/src/renderer/src/hooks/update-toast-controller.test.ts
new file mode 100644
index 00000000000..5644f699299
--- /dev/null
+++ b/src/renderer/src/hooks/update-toast-controller.test.ts
@@ -0,0 +1,200 @@
+import { describe, expect, it, vi, beforeEach } from 'vitest'
+import { createUpdateToastController } from './update-toast-controller'
+
+function createToastApi() {
+  return {
+    loading: vi.fn(),
+    info: vi.fn(),
+    success: vi.fn(),
+    error: vi.fn(),
+    dismiss: vi.fn()
+  }
+}
+
+function createUpdaterApi() {
+  return {
+    download: vi.fn().mockResolvedValue(undefined),
+    quitAndInstall: vi.fn().mockResolvedValue(undefined)
+  }
+}
+
+function createStoreApi(dismissedVersion: string | null = null) {
+  return {
+    getDismissedVersion: vi.fn().mockReturnValue(dismissedVersion),
+    dismissUpdate: vi.fn()
+  }
+}
+
+function getInfoOptions(toastApi: ReturnType<typeof createToastApi>) {
+  const lastCall = toastApi.info.mock.calls.at(-1) as [string, Record<string, unknown>]
+  const [, options] = lastCall
+  return options
+}
+
+describe('createUpdateToastController', () => {
+  beforeEach(() => {
+    vi.clearAllMocks()
+  })
+
+  it('shows a single persistent available toast with release notes and update action', () => {
+    const toastApi = createToastApi()
+    toastApi.loading.mockReturnValue('checking-toast')
+    toastApi.info.mockReturnValue('available-toast')
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi()
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({ state: 'checking', userInitiated: true })
+    controller.handleStatus({
+      state: 'available',
+      version: '1.2.3',
+      releaseUrl: 'https://example.com/release/1.2.3'
+    })
+
+    expect(toastApi.loading).toHaveBeenCalledWith('Checking for updates...')
+    expect(toastApi.dismiss).toHaveBeenCalledWith('checking-toast')
+    expect(toastApi.info).toHaveBeenCalledTimes(1)
+    expect(toastApi.success).not.toHaveBeenCalled()
+
+    const options = getInfoOptions(toastApi)
+    expect(options.duration).toBe(Infinity)
+    expect((options.description as { props: { href: string } }).props.href).toBe(
+      'https://example.com/release/1.2.3'
+    )
+    expect((options.action as { label: string }).label).toBe('Update')
+  })
+
+  it('dismisses the available toast when download progress starts', () => {
+    const toastApi = createToastApi()
+    toastApi.info.mockReturnValue('available-toast')
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi()
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({ state: 'available', version: '1.2.3' })
+    controller.handleStatus({ state: 'downloading', version: '1.2.3', percent: 42 })
+
+    expect(toastApi.dismiss).toHaveBeenCalledWith('available-toast')
+    expect(toastApi.loading).toHaveBeenLastCalledWith('Downloading v1.2.3… 42%', {
+      id: 'update-download-progress',
+      duration: Infinity
+    })
+  })
+
+  it('auto-restarts after download only when the user clicked the one-click update action', async () => {
+    const toastApi = createToastApi()
+    toastApi.info.mockReturnValue('available-toast')
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi()
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({ state: 'available', version: '1.2.3' })
+    const infoOptions = getInfoOptions(toastApi)
+    ;(infoOptions.action as { onClick: () => void }).onClick()
+
+    expect(updaterApi.download).toHaveBeenCalledTimes(1)
+
+    controller.handleStatus({ state: 'downloaded', version: '1.2.3' })
+
+    expect(updaterApi.quitAndInstall).toHaveBeenCalledTimes(1)
+    expect(toastApi.success).not.toHaveBeenCalled()
+  })
+
+  it('shows a restart toast after manual-download updates because they still need confirmation', () => {
+    const toastApi = createToastApi()
+    toastApi.info.mockReturnValue('available-toast')
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi()
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({
+      state: 'available',
+      version: '1.2.3',
+      manualDownloadUrl: 'https://example.com/download/1.2.3'
+    })
+    const infoOptions = getInfoOptions(toastApi)
+    ;(infoOptions.action as { onClick: () => void }).onClick()
+    controller.handleStatus({ state: 'downloaded', version: '1.2.3' })
+
+    expect(updaterApi.download).toHaveBeenCalledTimes(1)
+    expect(updaterApi.quitAndInstall).not.toHaveBeenCalled()
+    expect(toastApi.success).toHaveBeenCalledWith('Version 1.2.3 is ready to install.', {
+      description: expect.any(Object),
+      duration: Infinity,
+      action: expect.objectContaining({ label: 'Restart Now' })
+    })
+  })
+
+  it('clears stale one-click restart intent after a later check error', () => {
+    const toastApi = createToastApi()
+    toastApi.info.mockReturnValue('available-toast')
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi()
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({ state: 'available', version: '1.2.3' })
+    const infoOptions = getInfoOptions(toastApi)
+    ;(infoOptions.action as { onClick: () => void }).onClick()
+
+    controller.handleStatus({ state: 'error', message: 'network timeout' })
+    controller.handleStatus({ state: 'downloaded', version: '1.2.4' })
+
+    expect(updaterApi.quitAndInstall).not.toHaveBeenCalled()
+    expect(toastApi.success).toHaveBeenCalledWith('Version 1.2.4 is ready to install.', {
+      description: expect.any(Object),
+      duration: Infinity,
+      action: expect.objectContaining({ label: 'Restart Now' })
+    })
+  })
+
+  it('replaces the checking toast with a latest-version success toast for user-initiated checks', () => {
+    const toastApi = createToastApi()
+    toastApi.loading.mockReturnValue('checking-toast')
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi()
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({ state: 'checking', userInitiated: true })
+    controller.handleStatus({ state: 'not-available', userInitiated: true })
+
+    expect(toastApi.success).toHaveBeenCalledWith("You're on the latest version.", {
+      id: 'checking-toast'
+    })
+  })
+
+  it('suppresses the available toast when the version matches the dismissed version', () => {
+    const toastApi = createToastApi()
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi('1.2.3')
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({ state: 'available', version: '1.2.3' })
+
+    expect(toastApi.info).not.toHaveBeenCalled()
+  })
+
+  it('shows the available toast when a newer version supersedes the dismissed one', () => {
+    const toastApi = createToastApi()
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi('1.2.3')
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({ state: 'available', version: '1.3.0' })
+
+    expect(toastApi.info).toHaveBeenCalledTimes(1)
+  })
+
+  it('calls dismissUpdate when the user closes the available toast without updating', () => {
+    const toastApi = createToastApi()
+    toastApi.info.mockReturnValue('available-toast')
+    const updaterApi = createUpdaterApi()
+    const storeApi = createStoreApi()
+    const controller = createUpdateToastController({ toastApi, updaterApi, storeApi })
+
+    controller.handleStatus({ state: 'available', version: '1.2.3' })
+    const options = getInfoOptions(toastApi)
+    ;(options.onDismiss as () => void)()
+
+    expect(storeApi.dismissUpdate).toHaveBeenCalledTimes(1)
+  })
+})
diff --git a/src/renderer/src/hooks/update-toast-controller.ts b/src/renderer/src/hooks/update-toast-controller.ts
new file mode 100644
index 00000000000..b6355d4df3e
--- /dev/null
+++ b/src/renderer/src/hooks/update-toast-controller.ts
@@ -0,0 +1,177 @@
+import { createElement } from 'react'
+import { toast } from 'sonner'
+import type { UpdateStatus } from '../../../shared/types'
+import { useAppStore } from '../store'
+
+type ReleaseToastStatus = Extract<UpdateStatus, { state: 'available' | 'downloaded' }>
+
+type ToastApi = Pick<typeof toast, 'loading' | 'info' | 'success' | 'error' | 'dismiss'>
+
+type UpdaterApi = {
+  download: () => Promise<void>
+  quitAndInstall: () => Promise<unknown>
+}
+
+type StoreApi = {
+  getDismissedVersion: () => string | null
+  dismissUpdate: () => void
+}
+
+function getReleaseUrl(status: ReleaseToastStatus): string {
+  return status.releaseUrl ?? `https://github.com/stablyai/orca/releases/tag/v${status.version}`
+}
+
+export function createUpdateToastController(deps?: {
+  toastApi?: ToastApi
+  updaterApi?: UpdaterApi
+  storeApi?: StoreApi
+}): {
+  handleStatus: (status: UpdateStatus) => void
+} {
+  const toastApi = deps?.toastApi ?? toast
+  const updaterApi = deps?.updaterApi ?? window.api.updater
+  const storeApi: StoreApi = deps?.storeApi ?? {
+    getDismissedVersion: () => useAppStore.getState().dismissedUpdateVersion,
+    dismissUpdate: () => useAppStore.getState().dismissUpdate()
+  }
+
+  let checkingToastId: string | number | undefined
+  let availableToastId: string | number | undefined
+  const downloadToastId = 'update-download-progress'
+  // Why: the old updater UX was a single toast flow. Remember whether the
+  // user clicked the toast's update action so auto-download installs can
+  // finish in one step instead of showing a second bottom-right prompt.
+  let autoRestartAfterDownload = false
+
+  return {
+    handleStatus(status) {
+      // Why: update checks are a new lifecycle. Clearing the one-click
+      // install intent here prevents a stale flag from a previous release
+      // from auto-restarting on an unrelated later download.
+      if (status.state === 'checking' || status.state === 'error') {
+        autoRestartAfterDownload = false
+      }
+
+      if (status.state === 'checking' && 'userInitiated' in status && status.userInitiated) {
+        checkingToastId = toastApi.loading('Checking for updates...')
+      } else if (status.state === 'idle') {
+        if (checkingToastId) {
+          toastApi.dismiss(checkingToastId)
+          checkingToastId = undefined
+        }
+      } else if (status.state === 'not-available') {
+        if ('userInitiated' in status && status.userInitiated) {
+          toastApi.success("You're on the latest version.", { id: checkingToastId })
+          checkingToastId = undefined
+        }
+      } else if (status.state === 'available') {
+        if (checkingToastId) {
+          toastApi.dismiss(checkingToastId)
+        }
+        checkingToastId = undefined
+        // Why: if the user previously dismissed this exact version, don't
+        // re-show the toast. This preserves the old UpdateReminder behavior
+        // where dismissedUpdateVersion was checked before rendering.
+        if (storeApi.getDismissedVersion() === status.version) {
+          return
+        }
+        const releaseUrl = getReleaseUrl(status)
+        availableToastId = toastApi.info(`Version ${status.version} is available.`, {
+          description: createElement(
+            'a',
+            {
+              href: releaseUrl,
+              target: '_blank',
+              rel: 'noopener noreferrer',
+              style: { textDecoration: 'underline' }
+            },
+            'Release notes'
+          ),
+          duration: Infinity,
+          // Why: when the user closes the toast without clicking Update,
+          // persist the dismissed version so the same release doesn't
+          // re-appear on the next check or app restart.
+          onDismiss: () => storeApi.dismissUpdate(),
+          action: {
+            label: 'Update',
+            onClick: () => {
+              // Why: manual-download builds still need the follow-up install
+              // step, but auto-download builds should preserve the previous
+              // one-click toast behavior and restart as soon as the payload
+              // is ready.
+              if (!status.manualDownloadUrl) {
+                autoRestartAfterDownload = true
+              }
+              void updaterApi.download()
+            }
+          }
+        })
+      } else if (status.state === 'downloading') {
+        if (availableToastId) {
+          toastApi.dismiss(availableToastId)
+          availableToastId = undefined
+        }
+        toastApi.loading(`Downloading v${status.version}… ${status.percent}%`, {
+          id: downloadToastId,
+          duration: Infinity
+        })
+      } else if (status.state === 'downloaded') {
+        if (availableToastId) {
+          toastApi.dismiss(availableToastId)
+          availableToastId = undefined
+        }
+        toastApi.dismiss(downloadToastId)
+        if (autoRestartAfterDownload) {
+          autoRestartAfterDownload = false
+          void updaterApi.quitAndInstall()
+          return
+        }
+        const releaseUrl = getReleaseUrl(status)
+        toastApi.success(`Version ${status.version} is ready to install.`, {
+          description: createElement(
+            'a',
+            {
+              href: releaseUrl,
+              target: '_blank',
+              rel: 'noopener noreferrer',
+              style: { textDecoration: 'underline' }
+            },
+            'Release notes'
+          ),
+          duration: Infinity,
+          action: {
+            label: 'Restart Now',
+            onClick: () => {
+              void updaterApi.quitAndInstall()
+            }
+          }
+        })
+      } else if (status.state === 'error') {
+        toastApi.dismiss(downloadToastId)
+        if ('userInitiated' in status && status.userInitiated) {
+          toastApi.error('Could not check for updates.', {
+            description: createElement(
+              'span',
+              null,
+              status.message,
+              ' You can download the latest version manually from ',
+              createElement(
+                'a',
+                {
+                  href: 'https://github.com/stablyai/orca/releases/latest',
+                  target: '_blank',
+                  rel: 'noopener noreferrer',
+                  style: { textDecoration: 'underline' }
+                },
+                'our GitHub releases page'
+              ),
+              '.'
+            ),
+            id: checkingToastId
+          })
+          checkingToastId = undefined
+        }
+      }
+    }
+  }
+}
diff --git a/src/renderer/src/hooks/useIpcEvents.ts b/src/renderer/src/hooks/useIpcEvents.ts
index 635d87ddba3..a63ccb880e2 100644
--- a/src/renderer/src/hooks/useIpcEvents.ts
+++ b/src/renderer/src/hooks/useIpcEvents.ts
@@ -1,20 +1,16 @@
-import { useEffect, createElement } from 'react'
-import { toast } from 'sonner'
+import { useEffect } from 'react'
 import { useAppStore } from '../store'
 import { applyUIZoom } from '@/lib/ui-zoom'
 import { ensureWorktreeHasInitialTerminal } from '@/lib/worktree-activation'
 import type { UpdateStatus } from '../../../shared/types'
+import { createUpdateToastController } from './update-toast-controller'
 
 const ZOOM_STEP = 0.5
-type ReleaseToastStatus = Extract<UpdateStatus, { state: 'available' | 'downloaded' }>
-
-function getReleaseUrl(status: ReleaseToastStatus): string {
-  return status.releaseUrl ?? `https://github.com/stablyai/orca/releases/tag/v${status.version}`
-}
 
 export function useIpcEvents(): void {
   useEffect(() => {
     const unsubs: (() => void)[] = []
+    const updateToastController = createUpdateToastController()
 
     unsubs.push(
       window.api.repos.onChanged(() => {
@@ -60,82 +56,11 @@ export function useIpcEvents(): void {
       useAppStore.getState().setUpdateStatus(status as UpdateStatus)
     })
 
-    let checkingToastId: string | number | undefined
-    const downloadToastId = 'update-download-progress'
     unsubs.push(
       window.api.updater.onStatus((raw) => {
         const status = raw as UpdateStatus
         useAppStore.getState().setUpdateStatus(status)
-
-        // Show toasts for user-initiated checks
-        if (status.state === 'checking' && 'userInitiated' in status && status.userInitiated) {
-          checkingToastId = toast.loading('Checking for updates...')
-        } else if (status.state === 'idle') {
-          if (checkingToastId) {
-            toast.dismiss(checkingToastId)
-            checkingToastId = undefined
-          }
-        } else if (status.state === 'not-available') {
-          if ('userInitiated' in status && status.userInitiated) {
-            toast.success('You\u2019re on the latest version.', { id: checkingToastId })
-            checkingToastId = undefined
-          }
-        } else if (status.state === 'available') {
-          if (checkingToastId) {
-            toast.dismiss(checkingToastId)
-          }
-          checkingToastId = undefined
-        } else if (status.state === 'downloading') {
-          toast.loading(`Downloading v${status.version}… ${status.percent}%`, {
-            id: downloadToastId,
-            duration: Infinity
-          })
-        } else if (status.state === 'downloaded') {
-          toast.dismiss(downloadToastId)
-          const releaseUrl = getReleaseUrl(status)
-          toast.success(`Version ${status.version} is ready to install.`, {
-            description: createElement(
-              'a',
-              {
-                href: releaseUrl,
-                target: '_blank',
-                rel: 'noopener noreferrer',
-                style: { textDecoration: 'underline' }
-              },
-              'Release notes'
-            ),
-            duration: Infinity,
-            action: {
-              label: 'Restart Now',
-              onClick: () => window.api.updater.quitAndInstall()
-            }
-          })
-        } else if (status.state === 'error') {
-          toast.dismiss(downloadToastId)
-          if ('userInitiated' in status && status.userInitiated) {
-            toast.error('Could not check for updates.', {
-              description: createElement(
-                'span',
-                null,
-                status.message,
-                ' You can download the latest version manually from ',
-                createElement(
-                  'a',
-                  {
-                    href: 'https://github.com/stablyai/orca/releases/latest',
-                    target: '_blank',
-                    rel: 'noopener noreferrer',
-                    style: { textDecoration: 'underline' }
-                  },
-                  'our GitHub releases page'
-                ),
-                '.'
-              ),
-              id: checkingToastId
-            })
-            checkingToastId = undefined
-          }
-        }
+        updateToastController.handleStatus(status)
       })
     )