diff --git a/src/components/skills/SkillManagementPanel.tsx b/src/components/skills/SkillManagementPanel.tsx
index 664ce0017..70dedadf2 100644
--- a/src/components/skills/SkillManagementPanel.tsx
+++ b/src/components/skills/SkillManagementPanel.tsx
@@ -145,50 +145,59 @@ export default function SkillManagementPanel({
         </div>
       )}
 
-      {/* Action buttons — single row */}
-      <div className="pt-1">
-        {!confirmDisconnect ? (
-          <div className="flex space-x-2">
-            <button
-              onClick={handleRestart}
-              disabled={restarting}
-              className="flex-1 px-3 py-2 text-xs font-medium text-white bg-stone-700/60 border border-stone-600/50 rounded-xl hover:bg-stone-700 transition-colors disabled:opacity-50 disabled:cursor-not-allowed"
-            >
-              {restarting ? "Restarting..." : "Restart"}
-            </button>
-            {onReconfigure && (
+      {/* Action buttons — only show if skill is actually running */}
+      {connectionStatus !== "offline" && connectionStatus !== "setup_required" ? (
+        <div className="pt-1">
+          {!confirmDisconnect ? (
+            <div className="flex space-x-2">
               <button
-                onClick={onReconfigure}
-                className="flex-1 px-3 py-2 text-xs font-medium text-primary-300 bg-primary-500/10 border border-primary-500/30 rounded-xl hover:bg-primary-500/20 transition-colors"
+                onClick={handleRestart}
+                disabled={restarting}
+                className="flex-1 px-3 py-2 text-xs font-medium text-white bg-stone-700/60 border border-stone-600/50 rounded-xl hover:bg-stone-700 transition-colors disabled:opacity-50 disabled:cursor-not-allowed"
               >
-                Re-run Setup
+                {restarting ? "Restarting..." : "Restart"}
               </button>
-            )}
-            <button
-              onClick={() => setConfirmDisconnect(true)}
-              className="flex-1 px-3 py-2 text-xs font-medium text-coral-400 bg-coral-500/10 border border-coral-500/30 rounded-xl hover:bg-coral-500/20 transition-colors"
-            >
-              Disconnect
-            </button>
+              {onReconfigure && (
+                <button
+                  onClick={onReconfigure}
+                  className="flex-1 px-3 py-2 text-xs font-medium text-primary-300 bg-primary-500/10 border border-primary-500/30 rounded-xl hover:bg-primary-500/20 transition-colors"
+                >
+                  Re-run Setup
+                </button>
+              )}
+              <button
+                onClick={() => setConfirmDisconnect(true)}
+                className="flex-1 px-3 py-2 text-xs font-medium text-coral-400 bg-coral-500/10 border border-coral-500/30 rounded-xl hover:bg-coral-500/20 transition-colors"
+              >
+                Disconnect
+              </button>
+            </div>
+          ) : (
+            <div className="flex space-x-2">
+              <button
+                onClick={() => setConfirmDisconnect(false)}
+                className="flex-1 px-3 py-2 text-xs font-medium text-stone-400 bg-stone-800/50 border border-stone-700 rounded-xl hover:bg-stone-800 transition-colors"
+              >
+                Cancel
+              </button>
+              <button
+                onClick={handleDisconnect}
+                disabled={disconnecting}
+                className="flex-1 px-3 py-2 text-xs font-medium text-white bg-coral-500 rounded-xl hover:bg-coral-600 transition-colors disabled:opacity-50 disabled:cursor-not-allowed"
+              >
+                {disconnecting ? "Disconnecting..." : "Confirm Disconnect"}
+              </button>
+            </div>
+          )}
+        </div>
+      ) : (
+        // Show message for offline skills
+        <div className="pt-1">
+          <div className="text-xs text-stone-500 text-center py-2 px-3 bg-stone-800/30 rounded-xl border border-stone-700/30">
+            Skill is offline. Use "Re-run Setup" to reconnect.
           </div>
-        ) : (
-          <div className="flex space-x-2">
-            <button
-              onClick={() => setConfirmDisconnect(false)}
-              className="flex-1 px-3 py-2 text-xs font-medium text-stone-400 bg-stone-800/50 border border-stone-700 rounded-xl hover:bg-stone-800 transition-colors"
-            >
-              Cancel
-            </button>
-            <button
-              onClick={handleDisconnect}
-              disabled={disconnecting}
-              className="flex-1 px-3 py-2 text-xs font-medium text-white bg-coral-500 rounded-xl hover:bg-coral-600 transition-colors disabled:opacity-50 disabled:cursor-not-allowed"
-            >
-              {disconnecting ? "Disconnecting..." : "Confirm Disconnect"}
-            </button>
-          </div>
-        )}
-      </div>
+        </div>
+      )}
     </div>
   );
 }
diff --git a/src/components/skills/SkillSetupModal.tsx b/src/components/skills/SkillSetupModal.tsx
index 4233773c5..bf3e7ced2 100644
--- a/src/components/skills/SkillSetupModal.tsx
+++ b/src/components/skills/SkillSetupModal.tsx
@@ -7,6 +7,7 @@
 import { useState, useEffect, useRef } from "react";
 import { createPortal } from "react-dom";
 import { useAppSelector } from "../../store/hooks";
+import { useSkillConnectionStatus } from "../../lib/skills/hooks";
 import SkillSetupWizard from "./SkillSetupWizard";
 import SkillManagementPanel from "./SkillManagementPanel";
 
@@ -27,13 +28,20 @@ export default function SkillSetupModal({
   onClose,
 }: SkillSetupModalProps) {
   const modalRef = useRef<HTMLDivElement>(null);
-  const setupComplete = useAppSelector(
-    (state) => state.skills.skills[skillId]?.setupComplete,
-  );
-  // Skills without setup hooks always go straight to manage mode.
-  const [mode, setMode] = useState<"manage" | "setup">(
-    !hasSetup || setupComplete ? "manage" : "setup",
-  );
+  const skill = useAppSelector((state) => state.skills.skills[skillId]);
+  const connectionStatus = useSkillConnectionStatus(skillId);
+
+  // Simplified mode logic: Only show manage mode when skill is actually working
+  // Everything else (offline, errors, never connected, etc.) goes to setup mode
+  const [mode, setMode] = useState<"manage" | "setup">(() => {
+    // Only show manage mode when the skill is actually working
+    const isWorking = connectionStatus === "connected" || connectionStatus === "connecting";
+
+    // For skills without setup hooks, still need to check if they're working
+    // Show manage mode only if skill is currently working
+    // Everything else goes to setup mode (first-time setup, errors, offline, disconnected)
+    return isWorking ? "manage" : "setup";
+  });
 
   // Handle escape key
   useEffect(() => {
@@ -137,7 +145,7 @@ export default function SkillSetupModal({
             <SkillSetupWizard
               skillId={skillId}
               onComplete={onClose}
-              onCancel={setupComplete ? () => setMode("manage") : onClose}
+              onCancel={skill?.setupComplete ? () => setMode("manage") : onClose}
             />
           )}
         </div>