diff --git a/app/components/DS/pill.rb b/app/components/DS/pill.rb
index a868d8baa..b04ef61d6 100644
--- a/app/components/DS/pill.rb
+++ b/app/components/DS/pill.rb
@@ -32,6 +32,13 @@ class DS::Pill < DesignSystemComponent
   #
   # Other options:
   #
+  # - `show_dot:` defaults per mode. Stage markers (`marker: true`) keep
+  #   their dot; status / category badges (`marker: false`) are clean by
+  #   default — the pill shape + tone + label already carry the signal, so
+  #   a leading dot is usually redundant and noisy in dense lists. Pass
+  #   `show_dot: true` to opt a badge back in where the dot is genuinely
+  #   additive: live / temporal status ("Syncing", "Active"), or a single
+  #   sparse pill where the dot anchors it as a discrete element.
   # - `dot_only: true` renders only the colored dot (no label, no border).
   #   Use on the collapsed sidebar nav, where there's no room for the label.
   # - `icon:` overrides the dot with a Lucide icon (sized xs, current color).
@@ -44,13 +51,15 @@ class DS::Pill < DesignSystemComponent
   # - Sure has full violet / indigo / fuchsia / amber / green / gray /
   #   red ramps in the design system; this component picks named tokens
   #   at render time. No raw hex.
-  def initialize(label: nil, tone: :violet, style: :soft, size: :sm, show_dot: true, dot_only: false, title: nil, icon: nil, marker: true, custom_color: nil)
+  def initialize(label: nil, tone: :violet, style: :soft, size: :sm, show_dot: nil, dot_only: false, title: nil, icon: nil, marker: true, custom_color: nil)
     resolved_tone = SEMANTIC_TONE_ALIASES.fetch(tone.to_sym, tone.to_sym)
     @label = label || I18n.t("ds.pill.default_label", default: "Beta")
     @tone = TONES.include?(resolved_tone) ? resolved_tone : :violet
     @style = STYLES.include?(style.to_sym) ? style.to_sym : :soft
     @size = SIZES.include?(size.to_sym) ? size.to_sym : :sm
-    @show_dot = show_dot
+    # Default per mode: markers keep their dot, badges are dot-less. An
+    # explicit show_dot: true/false always wins.
+    @show_dot = show_dot.nil? ? marker : show_dot
     @dot_only = dot_only
     @title = title
     @icon = icon
diff --git a/app/views/settings/providers/_status_pill.html.erb b/app/views/settings/providers/_status_pill.html.erb
index efabfd989..e0fefc018 100644
--- a/app/views/settings/providers/_status_pill.html.erb
+++ b/app/views/settings/providers/_status_pill.html.erb
@@ -7,9 +7,12 @@
          else :neutral
          end
 %>
+<%# Provider connection state is genuine live status — keep the indicator dot
+    (badge mode is dot-less by default; this is a deliberate opt-in). %>
 <%= render DS::Pill.new(
   label: t("settings.providers.status.#{status}"),
   tone: tone,
   marker: false,
+  show_dot: true,
   size: :sm
 ) %>
diff --git a/test/components/DS/pill_test.rb b/test/components/DS/pill_test.rb
index a066e6e94..b66b0a200 100644
--- a/test/components/DS/pill_test.rb
+++ b/test/components/DS/pill_test.rb
@@ -51,6 +51,26 @@ class DS::PillTest < ViewComponent::TestCase
     assert_includes pill.palette[:bg], "color-red-50"
   end
 
+  test "marker mode shows the dot by default" do
+    render_inline(DS::Pill.new(label: "Beta", tone: :violet))
+    assert_selector "span.inline-block.rounded-full"
+  end
+
+  test "badge mode (marker: false) is dot-less by default" do
+    render_inline(DS::Pill.new(label: "Member", tone: :neutral, marker: false))
+    assert_no_selector "span.inline-block.rounded-full"
+  end
+
+  test "badge mode opts back into the dot with show_dot: true" do
+    render_inline(DS::Pill.new(label: "Active", tone: :success, marker: false, show_dot: true))
+    assert_selector "span.inline-block.rounded-full"
+  end
+
+  test "marker mode can drop the dot with show_dot: false" do
+    render_inline(DS::Pill.new(label: "Beta", tone: :violet, show_dot: false))
+    assert_no_selector "span.inline-block.rounded-full"
+  end
+
   test "custom color renders dynamic badge styles" do
     render_inline(DS::Pill.new(label: "Groceries", marker: false, custom_color: "#f97316"))
 
diff --git a/test/components/previews/pill_component_preview.rb b/test/components/previews/pill_component_preview.rb
index ae036179c..fce55a602 100644
--- a/test/components/previews/pill_component_preview.rb
+++ b/test/components/previews/pill_component_preview.rb
@@ -39,8 +39,12 @@ class PillComponentPreview < ViewComponent::Preview
   # @!endgroup
 
   # @!group Status badges (marker: false, semantic tones)
+  # Badge mode is dot-less by default — tone + label carry the signal. Opt the
+  # dot back in with show_dot: true only where it's genuinely additive (live /
+  # temporal status, or a single sparse pill). status_active below shows the
+  # opt-in; status_pending / status_archived show the clean default.
   def status_active
-    render DS::Pill.new(label: "Active", tone: :success, marker: false)
+    render DS::Pill.new(label: "Active", tone: :success, marker: false, show_dot: true)
   end
 
   def status_pending