diff --git a/ui/goose2/scripts/check-file-sizes.mjs b/ui/goose2/scripts/check-file-sizes.mjs
index a80012b342..559bd719c0 100644
--- a/ui/goose2/scripts/check-file-sizes.mjs
+++ b/ui/goose2/scripts/check-file-sizes.mjs
@@ -11,9 +11,9 @@ const EXCEPTIONS = {
       "Temporary allowance while project creation, home/chat handoff, session-history routing, and drag-drop wiring remain in the shell.",
   },
   "src/features/sidebar/ui/SidebarProjectsSection.tsx": {
-    limit: 545,
+    limit: 560,
     justification:
-      "Added drag-and-drop handlers for moving chats between projects.",
+      "Drag-and-drop handlers plus activeProjectId highlight for draft-in-project sessions.",
   },
   "src/features/chat/ui/ChatView.tsx": {
     limit: 505,
@@ -21,8 +21,9 @@ const EXCEPTIONS = {
       "Added useSessionAutoTitle hook call for smart session naming.",
   },
   "src/features/sidebar/ui/Sidebar.tsx": {
-    limit: 575,
-    justification: "Added search-as-you-type filtering for sidebar sessions.",
+    limit: 580,
+    justification:
+      "Search-as-you-type filtering plus draft-aware sidebar highlight logic.",
   },
   "src-tauri/src/services/acp/manager.rs": {
     limit: 520,
diff --git a/ui/goose2/src/features/sidebar/ui/Sidebar.tsx b/ui/goose2/src/features/sidebar/ui/Sidebar.tsx
index e1f604e444..2fdbbf1738 100644
--- a/ui/goose2/src/features/sidebar/ui/Sidebar.tsx
+++ b/ui/goose2/src/features/sidebar/ui/Sidebar.tsx
@@ -260,12 +260,8 @@ export function Sidebar({
     return () => window.removeEventListener("keydown", handler);
   }, []);
 
-  const toggleProject = (projectId: string) => {
-    setExpandedProjects((prev) => ({
-      ...prev,
-      [projectId]: !prev[projectId],
-    }));
-  };
+  const toggleProject = (projectId: string) =>
+    setExpandedProjects((prev) => ({ ...prev, [projectId]: !prev[projectId] }));
 
   const navRef = useRef<HTMLElement>(null);
   const homeRef = useRef<HTMLButtonElement>(null);
@@ -279,12 +275,20 @@ export function Sidebar({
     updateActiveRect,
   } = useSidebarHighlight(navRef);
 
-  // Update active rect when activeView/activeSessionId changes
+  // Drafts aren't in the sidebar — highlight project row or clear highlight.
+  const activeDraft = activeSessionId
+    ? sessions.find((s) => s.id === activeSessionId && s.draft)
+    : undefined;
+  const activeProjectId = activeDraft?.projectId ?? null;
+
+  // Position the sliding highlight based on what's active.
+  // Non-draft sessions and draft-in-project are handled by ref callbacks.
   useEffect(() => {
-    if (activeSessionId) {
+    if (activeDraft) {
+      if (!activeProjectId) updateActiveRect(null);
       return;
     }
-
+    if (activeSessionId) return;
     if (activeView === "home") {
       updateActiveRect(homeRef.current);
     } else if (activeView && navItemRefs.current[activeView]) {
@@ -292,17 +296,27 @@ export function Sidebar({
     } else {
       updateActiveRect(null);
     }
-  }, [activeSessionId, activeView, updateActiveRect]);
+  }, [
+    activeSessionId,
+    activeDraft,
+    activeProjectId,
+    activeView,
+    updateActiveRect,
+  ]);
 
-  // Callback for SidebarProjectsSection to register active session refs
+  // Ref callbacks to position the highlight on active session or project row.
   const activeSessionRefCallback = useCallback(
     (el: HTMLElement | null) => {
-      if (activeSessionId && el) {
-        updateActiveRect(el);
-      }
+      if (activeSessionId && el) updateActiveRect(el);
     },
     [activeSessionId, updateActiveRect],
   );
+  const activeProjectRefCallback = useCallback(
+    (el: HTMLElement | null) => {
+      if (activeProjectId && el) updateActiveRect(el);
+    },
+    [activeProjectId, updateActiveRect],
+  );
 
   return (
     <div
@@ -538,6 +552,7 @@ export function Sidebar({
                 labelTransition={labelTransition}
                 labelVisible={labelVisible}
                 activeSessionId={activeSessionId}
+                activeProjectId={activeProjectId}
                 onNavigate={onNavigate}
                 onSelectSession={onSelectSession}
                 onNewChatInProject={onNewChatInProject}
@@ -550,6 +565,7 @@ export function Sidebar({
                 onMoveToProject={onMoveToProject}
                 onItemMouseEnter={onItemMouseEnter}
                 activeSessionRefCallback={activeSessionRefCallback}
+                activeProjectRefCallback={activeProjectRefCallback}
               />
             </>
           )}
diff --git a/ui/goose2/src/features/sidebar/ui/SidebarProjectsSection.tsx b/ui/goose2/src/features/sidebar/ui/SidebarProjectsSection.tsx
index ff025e01d1..5b7d842e47 100644
--- a/ui/goose2/src/features/sidebar/ui/SidebarProjectsSection.tsx
+++ b/ui/goose2/src/features/sidebar/ui/SidebarProjectsSection.tsx
@@ -46,6 +46,7 @@ interface SidebarProjectsSectionProps {
   labelTransition: string;
   labelVisible: boolean;
   activeSessionId?: string | null;
+  activeProjectId?: string | null;
   onNavigate?: (view: AppView) => void;
   onSelectSession?: (sessionId: string) => void;
   onNewChatInProject?: (projectId: string) => void;
@@ -58,6 +59,7 @@ interface SidebarProjectsSectionProps {
   onMoveToProject?: (sessionId: string, projectId: string | null) => void;
   onItemMouseEnter?: (e: React.MouseEvent<HTMLElement>) => void;
   activeSessionRefCallback?: (el: HTMLElement | null) => void;
+  activeProjectRefCallback?: (el: HTMLElement | null) => void;
 }
 function ItemMenu({
   label,
@@ -112,6 +114,7 @@ function ProjectSection({
   isExpanded,
   toggleProject,
   activeSessionId,
+  activeProjectId,
   onSelectSession,
   onNewChatInProject,
   onNavigate,
@@ -122,12 +125,14 @@ function ProjectSection({
   onMoveToProject,
   onItemMouseEnter,
   activeSessionRefCallback,
+  activeProjectRefCallback,
 }: {
   project: ProjectInfo;
   projectChats: TabInfo[];
   isExpanded: boolean;
   toggleProject: (projectId: string) => void;
   activeSessionId?: string | null;
+  activeProjectId?: string | null;
   onSelectSession?: (sessionId: string) => void;
   onNewChatInProject?: (projectId: string) => void;
   onNavigate?: (view: AppView) => void;
@@ -138,6 +143,7 @@ function ProjectSection({
   onMoveToProject?: (sessionId: string, projectId: string | null) => void;
   onItemMouseEnter?: (e: React.MouseEvent<HTMLElement>) => void;
   activeSessionRefCallback?: (el: HTMLElement | null) => void;
+  activeProjectRefCallback?: (el: HTMLElement | null) => void;
 }) {
   const [showAll, setShowAll] = useState(false);
   const [dragOver, setDragOver] = useState(false);
@@ -180,7 +186,12 @@ function ProjectSection({
       onDrop={handleDrop}
     >
       {/* Project row */}
-      <div className="relative flex items-center group rounded-md transition-colors duration-200">
+      <div
+        ref={
+          activeProjectId === project.id ? activeProjectRefCallback : undefined
+        }
+        className="relative flex items-center group rounded-md transition-colors duration-200"
+      >
         <Button
           type="button"
           variant="ghost"
@@ -189,7 +200,9 @@ function ProjectSection({
           onMouseEnter={onItemMouseEnter}
           className={cn(
             "flex-1 min-w-0 justify-start gap-2 rounded-md px-3 py-2 text-[13px] font-light",
-            PROJECT_ROW_TEXT_CLASS,
+            activeProjectId === project.id
+              ? "text-foreground hover:bg-transparent hover:text-foreground group-hover:text-foreground"
+              : PROJECT_ROW_TEXT_CLASS,
           )}
         >
           <span className="relative flex h-3 w-3 flex-shrink-0 items-center justify-center">
@@ -302,6 +315,7 @@ export function SidebarProjectsSection({
   labelTransition,
   labelVisible,
   activeSessionId,
+  activeProjectId,
   onNavigate,
   onSelectSession,
   onNewChatInProject,
@@ -314,6 +328,7 @@ export function SidebarProjectsSection({
   onMoveToProject,
   onItemMouseEnter,
   activeSessionRefCallback,
+  activeProjectRefCallback,
 }: SidebarProjectsSectionProps) {
   const [recentsDragOver, setRecentsDragOver] = useState(false);
 
@@ -420,6 +435,7 @@ export function SidebarProjectsSection({
               isExpanded={expandedProjects[project.id] ?? false}
               toggleProject={toggleProject}
               activeSessionId={activeSessionId}
+              activeProjectId={activeProjectId}
               onSelectSession={onSelectSession}
               onNewChatInProject={onNewChatInProject}
               onNavigate={onNavigate}
@@ -430,6 +446,7 @@ export function SidebarProjectsSection({
               onMoveToProject={onMoveToProject}
               onItemMouseEnter={onItemMouseEnter}
               activeSessionRefCallback={activeSessionRefCallback}
+              activeProjectRefCallback={activeProjectRefCallback}
             />
           ))}
         </div>