diff --git a/packages/app/e2e/regression/tabs.spec.ts b/packages/app/e2e/regression/tabs.spec.ts
index 351816ae655..b4b01792016 100644
--- a/packages/app/e2e/regression/tabs.spec.ts
+++ b/packages/app/e2e/regression/tabs.spec.ts
@@ -423,10 +423,7 @@ test("vertical tabs resize, scroll, show shortcut hints, and navigate", async ({
 
   const handle = sidebar.locator('[data-component="resize-handle"]')
 
-  for (const [offset, width] of [
-    [-80, "180px"],
-    [-200, "140px"],
-  ] as const) {
+  const resize = async (offset: number, width: string) => {
     const box = await handle.boundingBox()
 
     if (!box) throw new Error("vertical tab resize handle has no bounding box")
@@ -437,6 +434,9 @@ test("vertical tabs resize, scroll, show shortcut hints, and navigate", async ({
     await expect(sidebar).toHaveCSS("width", width)
   }
 
+  await resize(-80, "180px")
+  await resize(-40, "140px")
+
   for (const name of ["Home", "New session"]) {
     const label = sidebar.getByRole("button", { name, exact: true }).getByText(name, { exact: true })
     await expect(label).toBeVisible()
@@ -445,6 +445,14 @@ test("vertical tabs resize, scroll, show shortcut hints, and navigate", async ({
       .toBeLessThanOrEqual(1)
   }
 
+  await resize(-200, "120px")
+  const homeLabel = sidebar.getByRole("button", { name: "Home", exact: true }).getByText("Home", { exact: true })
+  await expect
+    .poll(() => homeLabel.evaluate((element) => element.scrollWidth - element.clientWidth))
+    .toBeLessThanOrEqual(1)
+  await resize(800, "640px")
+  await resize(-380, "260px")
+
   const scroll = sidebar.locator('[data-slot="vertical-tabs-scroll"]')
   await scroll.evaluate((element) => element.scrollTo(0, element.scrollHeight))
   await expect(tabB).toBeInViewport({ ratio: 1 })
diff --git a/packages/app/src/session/screen-layout.ts b/packages/app/src/session/screen-layout.ts
index d8d07b16549..9394e220ebd 100644
--- a/packages/app/src/session/screen-layout.ts
+++ b/packages/app/src/session/screen-layout.ts
@@ -45,6 +45,7 @@ export function createSessionScreenLayout(
       width: view().session.width(),
       available: available(),
       split: splitSide(),
+      resized: view().session.resized(),
     }),
   )
 
@@ -61,7 +62,7 @@ export function createSessionScreenLayout(
 
     if (width === undefined) return 1000
 
-    return sessionPanelWidthMax({ available: width, split: splitSide() })
+    return sessionPanelWidthMax({ available: width, split: splitSide(), resized: true })
   })
 
   const sideOpen = createMemo(() => tabsOpen() || fileTreeOpen())
diff --git a/packages/app/src/session/screen.tsx b/packages/app/src/session/screen.tsx
index 28a114174e8..fa8f71efefb 100644
--- a/packages/app/src/session/screen.tsx
+++ b/packages/app/src/session/screen.tsx
@@ -474,6 +474,7 @@ function SessionScreenContent(props: {
           >
             <div onPointerDown={() => screen.size.start()}>
               <ResizeHandle
+                class="-top-1"
                 direction="vertical"
                 edge="start"
                 size={session.layout.view().bottom.height()}
diff --git a/packages/app/src/session/session-panel-width.test.ts b/packages/app/src/session/session-panel-width.test.ts
index 35ee2824fe0..7510e426258 100644
--- a/packages/app/src/session/session-panel-width.test.ts
+++ b/packages/app/src/session/session-panel-width.test.ts
@@ -2,14 +2,17 @@ import { expect, test } from "bun:test"
 import { clampSessionPanelWidth } from "./session-panel-width"
 
 test.each([
-  ["keeps widths already within the limit", 800, 1700, false, 800],
-  ["reserves the unified review pane minimum", 1600, 1700, false, 1220],
-  ["reserves a larger minimum for split diffs", 1600, 1700, true, 900],
+  ["keeps widths already within the limit", 800, 1700, false, false, 800],
+  ["reserves the unified review pane minimum", 1600, 1700, false, false, 1220],
+  ["reserves a larger minimum for split diffs", 1600, 1700, true, false, 900],
   // Regression: the old cap was 45% of the window, forcing the review pane to at least 55%.
-  ["lets the chat panel take everything beyond the review pane minimum", 3440, 3440, false, 2960],
-  ["holds the chat panel minimum when there is no room for both", 1600, 700, true, 450],
-  ["never drops below the chat panel minimum on small windows", 1600, 0, false, 450],
-  ["skips clamping before the layout is measured", 1600, undefined, false, 1600],
-])("%s", (_name, width, available, split, expected) => {
-  expect(clampSessionPanelWidth({ width, available, split })).toBe(expected)
+  ["lets the chat panel take everything beyond the review pane minimum", 3440, 3440, false, false, 2960],
+  ["holds the chat panel minimum when there is no room for both", 1600, 700, true, false, 450],
+  ["never drops below the chat panel minimum on small windows", 1600, 0, false, false, 450],
+  ["skips clamping before the layout is measured", 1600, undefined, false, false, 1600],
+  ["lets a dragged width leave the side pane its hard minimum, split diffs included", 1600, 1700, true, true, 1380],
+  ["keeps a dragged width below the default minimum", 320, 700, true, true, 320],
+  ["never drops a dragged width below the hard chat minimum", 1600, 0, false, true, 320],
+])("%s", (_name, width, available, split, resized, expected) => {
+  expect(clampSessionPanelWidth({ width, available, split, resized })).toBe(expected)
 })
diff --git a/packages/app/src/session/session-panel-width.ts b/packages/app/src/session/session-panel-width.ts
index 3cf0efe77d2..e66fa9d1aea 100644
--- a/packages/app/src/session/session-panel-width.ts
+++ b/packages/app/src/session/session-panel-width.ts
@@ -2,22 +2,35 @@
 // leaves behind. Instead of capping the chat panel at a fraction of the window
 // (which forces the review pane to grow with the monitor), reserve a fixed
 // minimum for the review pane and let the chat panel take everything else.
-export const SESSION_PANEL_WIDTH_MIN = 450
+// Until the user drags the divider, the default width keeps roomier minimums
+// (wider still for split diffs); a drag can take either side down to the hard
+// minimum.
+export const SESSION_PANEL_WIDTH_MIN = 320
 
-const REVIEW_PANE_WIDTH_MIN = 480
+const SIDE_PANE_WIDTH_MIN = 320
 
-const REVIEW_PANE_WIDTH_MIN_SPLIT = 800
+const SESSION_PANEL_WIDTH_FIT = 450
 
-export function sessionPanelWidthMax(input: { available: number; split: boolean }) {
-  const pane = input.split ? REVIEW_PANE_WIDTH_MIN_SPLIT : REVIEW_PANE_WIDTH_MIN
+const REVIEW_PANE_WIDTH_FIT = 480
 
-  return Math.max(SESSION_PANEL_WIDTH_MIN, input.available - pane)
+const REVIEW_PANE_WIDTH_FIT_SPLIT = 800
+
+export function sessionPanelWidthMax(input: { available: number; split: boolean; resized: boolean }) {
+  if (input.resized) return Math.max(SESSION_PANEL_WIDTH_MIN, input.available - SIDE_PANE_WIDTH_MIN)
+  const pane = input.split ? REVIEW_PANE_WIDTH_FIT_SPLIT : REVIEW_PANE_WIDTH_FIT
+
+  return Math.max(SESSION_PANEL_WIDTH_FIT, input.available - pane)
 }
 
 // `available` is undefined until the layout row is first measured; render the
 // stored width untouched until then to avoid a first-frame snap.
-export function clampSessionPanelWidth(input: { width: number; available: number | undefined; split: boolean }) {
+export function clampSessionPanelWidth(input: {
+  width: number
+  available: number | undefined
+  split: boolean
+  resized: boolean
+}) {
   if (input.available === undefined) return input.width
 
-  return Math.min(input.width, sessionPanelWidthMax({ available: input.available, split: input.split }))
+  return Math.min(input.width, sessionPanelWidthMax({ ...input, available: input.available }))
 }
diff --git a/packages/app/src/shell/shell.tsx b/packages/app/src/shell/shell.tsx
index d6c8eb1c133..7cd186add94 100644
--- a/packages/app/src/shell/shell.tsx
+++ b/packages/app/src/shell/shell.tsx
@@ -93,11 +93,11 @@ export default function Layout(props: ParentProps) {
               </div>
               <Show when={preferences.appearance.sidebarOpen()}>
                 <ResizeHandle
-                  class="-end-2"
+                  class="-end-1"
                   direction="horizontal"
                   size={state.tabsWidth}
-                  min={140}
-                  max={520}
+                  min={120}
+                  max={640}
                   onResize={(width) => setState("tabsWidth", width)}
                 />
               </Show>
diff --git a/packages/app/src/shell/state/layout.tsx b/packages/app/src/shell/state/layout.tsx
index ad761f85d9e..ff93e197328 100644
--- a/packages/app/src/shell/state/layout.tsx
+++ b/packages/app/src/shell/state/layout.tsx
@@ -576,6 +576,8 @@ export const { use: useLayout, provider: LayoutProvider } = createSimpleContext(
           },
           session: {
             width: createMemo(() => regions.sessionWidth() ?? DEFAULT_SESSION_WIDTH),
+            /** The user has dragged the divider, so the width is theirs rather than the default. */
+            resized: createMemo(() => regions.sessionWidth() !== undefined),
             resize: regions.setSessionWidth,
           },
         }
diff --git a/packages/ui/src/components/resize-handle.css b/packages/ui/src/components/resize-handle.css
index 5d8b90b3290..1a8cbbbfcb5 100644
--- a/packages/ui/src/components/resize-handle.css
+++ b/packages/ui/src/components/resize-handle.css
@@ -2,16 +2,35 @@
   position: absolute;
   z-index: 10;
 
+  /* A pill centred on the handle. It waits a moment before showing on hover so crossing a boundary stays quiet. */
   &::after {
     content: "";
     position: absolute;
+    top: 50%;
+    left: 50%;
+    translate: -50% -50%;
+    border-radius: 9999px;
+    background-color: var(--v2-icon-icon-muted);
     opacity: 0;
-    transition: opacity 0.15s ease-in-out;
+    pointer-events: none;
+    transition:
+      opacity 110ms cubic-bezier(0.4, 0, 1, 1),
+      background-color 150ms cubic-bezier(0.2, 0.8, 0.2, 1);
   }
 
-  &:hover::after,
-  &:active::after {
+  &:hover::after {
     opacity: 1;
+    transition:
+      opacity 150ms cubic-bezier(0.2, 0.8, 0.2, 1) 200ms,
+      background-color 150ms cubic-bezier(0.2, 0.8, 0.2, 1);
+  }
+
+  &[data-dragging]::after {
+    opacity: 1;
+    background-color: var(--v2-icon-icon-base);
+    transition:
+      opacity 150ms cubic-bezier(0.2, 0.8, 0.2, 1),
+      background-color 150ms cubic-bezier(0.2, 0.8, 0.2, 1);
   }
 
   &:where([data-direction="horizontal"]) {
@@ -28,10 +47,8 @@
     }
 
     &::after {
-      width: 3px;
-      inset-block: 0;
-      inset-inline-start: 50%;
-      transform: translateX(-50%);
+      width: 4px;
+      height: 40px;
     }
 
     &:dir(rtl) {
@@ -40,10 +57,6 @@
       &[data-edge="start"] {
         transform: translateX(50%);
       }
-
-      &::after {
-        transform: translateX(50%);
-      }
     }
   }
 
@@ -61,10 +74,8 @@
     }
 
     &::after {
-      height: 3px;
-      inset-inline: 0;
-      inset-block-start: 50%;
-      transform: translateY(-50%);
+      width: 40px;
+      height: 4px;
     }
   }
 }
diff --git a/packages/ui/src/components/resize-handle.tsx b/packages/ui/src/components/resize-handle.tsx
index f63f83af7e7..c8c828557b6 100644
--- a/packages/ui/src/components/resize-handle.tsx
+++ b/packages/ui/src/components/resize-handle.tsx
@@ -31,6 +31,7 @@ export function ResizeHandle(props: ResizeHandleProps) {
   const handleMouseDown = (e: MouseEvent) => {
     if (e.detail > 1) return
     e.preventDefault()
+    const handle = e.currentTarget instanceof HTMLElement ? e.currentTarget : undefined
     const edge = local.edge ?? (local.direction === "vertical" ? "start" : "end")
     const start = local.direction === "horizontal" ? e.clientX : e.clientY
 
@@ -51,6 +52,8 @@ export function ResizeHandle(props: ResizeHandleProps) {
 
     document.body.style.userSelect = "none"
     document.body.style.overflow = "hidden"
+    document.body.style.cursor = local.direction === "horizontal" ? "col-resize" : "row-resize"
+    handle?.setAttribute("data-dragging", "")
 
     const onMouseMove = (moveEvent: MouseEvent) => {
       const pos = local.direction === "horizontal" ? moveEvent.clientX : moveEvent.clientY
@@ -78,6 +81,8 @@ export function ResizeHandle(props: ResizeHandleProps) {
     const onMouseUp = () => {
       document.body.style.userSelect = ""
       document.body.style.overflow = ""
+      document.body.style.cursor = ""
+      handle?.removeAttribute("data-dragging")
       document.removeEventListener("mousemove", onMouseMove)
       document.removeEventListener("mouseup", onMouseUp)