diff --git a/frontend/src/components/assistant/ConcludeSessionModal.tsx b/frontend/src/components/assistant/ConcludeSessionModal.tsx
index c32e71cd..3f7609a0 100644
--- a/frontend/src/components/assistant/ConcludeSessionModal.tsx
+++ b/frontend/src/components/assistant/ConcludeSessionModal.tsx
@@ -11,6 +11,9 @@ import {
   ClipboardList,
   Sparkles,
   AlertTriangle,
+  FileText,
+  User,
+  Mail,
 } from 'lucide-react'
 import { cn } from '@/lib/utils'
 import { MarkdownContent } from '@/components/ui/MarkdownContent'
@@ -76,6 +79,7 @@ export function ConcludeSessionModal({
   const [error, setError] = useState<string | null>(null)
   const [streaming, setStreaming] = useState(false)
   const [streamError, setStreamError] = useState<string | null>(null)
+  const [generatingUpdate, setGeneratingUpdate] = useState(false)
   const summaryRef = useRef('')
 
   // Reset state when modal opens
@@ -90,6 +94,7 @@ export function ConcludeSessionModal({
       setError(null)
       setStreaming(false)
       setStreamError(null)
+      setGeneratingUpdate(false)
       summaryRef.current = ''
     }
   }, [isOpen])
@@ -142,10 +147,9 @@ export function ConcludeSessionModal({
             })
           },
         )
-      } else if (outcome === 'escalated') {
-        setSummary('Session escalated. Ticket notes will be generated when the session is resolved.')
       } else {
-        setSummary('Session paused. Progress saved — you can resume anytime.')
+        // For paused/escalated: don't set summary yet — show status update options
+        setSummary('')
       }
     } catch {
       setError('Failed to conclude session. Please try again.')
@@ -176,6 +180,25 @@ export function ConcludeSessionModal({
     onClose()
   }
 
+  const handleGenerateStatusUpdate = async (audience: 'ticket_notes' | 'client_update' | 'email_draft') => {
+    if (!sessionId) return
+    setGeneratingUpdate(true)
+    try {
+      const context = outcome === 'escalated' ? 'escalation' : 'status'
+      const result = await aiSessionsApi.generateStatusUpdate(sessionId, {
+        audience,
+        length: 'detailed',
+        context,
+      })
+      setSummary(result.content)
+      setCopied(false)
+    } catch {
+      setSummary('Failed to generate status update. You can copy the conversation from the chat.')
+    } finally {
+      setGeneratingUpdate(false)
+    }
+  }
+
   if (!isOpen) return null
 
   const selectedOutcome = OUTCOMES.find(o => o.value === outcome)
@@ -354,42 +377,115 @@ export function ConcludeSessionModal({
                 </div>
               )}
 
-              {/* Generated ticket notes */}
-              <div
-                className="rounded-xl border p-5 bg-card"
-                style={{ borderColor: 'var(--color-border-default)' }}
-              >
-                <div className="flex items-center justify-between mb-3">
-                  <span className="font-sans text-xs text-[0.625rem] uppercase tracking-widest text-muted-foreground flex items-center gap-1.5">
-                    <Sparkles size={10} className="text-primary" />
-                    Ticket Notes
-                  </span>
-                  {streaming && (
-                    <Loader2 size={14} className="animate-spin text-primary" />
-                  )}
-                </div>
+              {/* Resolved: streamed ticket notes */}
+              {outcome === 'resolved' && (
+                <div
+                  className="rounded-xl border p-5 bg-card"
+                  style={{ borderColor: 'var(--color-border-default)' }}
+                >
+                  <div className="flex items-center justify-between mb-3">
+                    <span className="font-sans text-xs text-[0.625rem] uppercase tracking-widest text-muted-foreground flex items-center gap-1.5">
+                      <Sparkles size={10} className="text-primary" />
+                      Ticket Notes
+                    </span>
+                    {streaming && (
+                      <Loader2 size={14} className="animate-spin text-primary" />
+                    )}
+                  </div>
 
-                {/* Streaming content or skeleton */}
-                {summary ? (
+                  {summary ? (
+                    <div className="prose-sm text-foreground">
+                      <MarkdownContent content={summary} className="text-[0.8125rem] leading-relaxed" />
+                    </div>
+                  ) : streaming ? (
+                    <div className="space-y-3 animate-pulse">
+                      <div className="h-4 bg-elevated rounded w-1/3" />
+                      <div className="h-3 bg-elevated rounded w-full" />
+                      <div className="h-3 bg-elevated rounded w-5/6" />
+                      <div className="h-4 bg-elevated rounded w-1/4 mt-4" />
+                      <div className="h-3 bg-elevated rounded w-full" />
+                      <div className="h-3 bg-elevated rounded w-4/5" />
+                    </div>
+                  ) : streamError ? (
+                    <div className="flex items-center gap-2 text-sm text-amber-400">
+                      <AlertTriangle size={14} />
+                      {streamError}
+                    </div>
+                  ) : null}
+                </div>
+              )}
+
+              {/* Paused/Escalated: status update options */}
+              {(outcome === 'paused' || outcome === 'escalated') && !summary && !generatingUpdate && (
+                <div className="space-y-3">
+                  <p className="text-sm text-muted-foreground">
+                    {outcome === 'paused'
+                      ? 'Session paused. Generate a status update to share progress.'
+                      : 'Session escalated. Generate an update to document the handoff.'}
+                  </p>
+                  <div className="space-y-2">
+                    <button
+                      onClick={() => handleGenerateStatusUpdate('ticket_notes')}
+                      className="flex w-full items-center gap-3 rounded-lg px-4 py-3 text-left transition-colors hover:bg-[var(--color-bg-elevated)]"
+                      style={{ border: '1px solid var(--color-border-default)' }}
+                    >
+                      <FileText size={18} className="text-muted-foreground shrink-0" />
+                      <div>
+                        <p className="text-sm font-medium text-foreground">Ticket Notes</p>
+                        <p className="text-xs text-muted-foreground">Technical, for your PSA</p>
+                      </div>
+                    </button>
+                    <button
+                      onClick={() => handleGenerateStatusUpdate('client_update')}
+                      className="flex w-full items-center gap-3 rounded-lg px-4 py-3 text-left transition-colors hover:bg-[var(--color-bg-elevated)]"
+                      style={{ border: '1px solid var(--color-border-default)' }}
+                    >
+                      <User size={18} className="text-muted-foreground shrink-0" />
+                      <div>
+                        <p className="text-sm font-medium text-foreground">Client Update</p>
+                        <p className="text-xs text-muted-foreground">Professional, non-technical</p>
+                      </div>
+                    </button>
+                    <button
+                      onClick={() => handleGenerateStatusUpdate('email_draft')}
+                      className="flex w-full items-center gap-3 rounded-lg px-4 py-3 text-left transition-colors hover:bg-[var(--color-bg-elevated)]"
+                      style={{ border: '1px solid var(--color-border-default)' }}
+                    >
+                      <Mail size={18} className="text-muted-foreground shrink-0" />
+                      <div>
+                        <p className="text-sm font-medium text-foreground">Email Draft</p>
+                        <p className="text-xs text-muted-foreground">Full email with subject line</p>
+                      </div>
+                    </button>
+                  </div>
+                </div>
+              )}
+
+              {/* Paused/Escalated: generating spinner */}
+              {(outcome === 'paused' || outcome === 'escalated') && generatingUpdate && (
+                <div className="flex flex-col items-center justify-center py-8 gap-3">
+                  <Loader2 size={24} className="animate-spin text-orange-400" />
+                  <p className="text-sm text-muted-foreground">Generating status update...</p>
+                </div>
+              )}
+
+              {/* Paused/Escalated: generated result */}
+              {(outcome === 'paused' || outcome === 'escalated') && summary && !generatingUpdate && (
+                <div
+                  className="rounded-xl border p-5 bg-card"
+                  style={{ borderColor: 'var(--color-border-default)' }}
+                >
+                  <div className="flex items-center justify-between mb-3">
+                    <span className="font-sans text-xs text-[0.625rem] uppercase tracking-widest text-muted-foreground flex items-center gap-1.5">
+                      <Sparkles size={10} className="text-primary" />
+                      Status Update
+                    </span>
+                  </div>
                   <div className="prose-sm text-foreground">
                     <MarkdownContent content={summary} className="text-[0.8125rem] leading-relaxed" />
                   </div>
-                ) : streaming ? (
-                  <div className="space-y-3 animate-pulse">
-                    <div className="h-4 bg-elevated rounded w-1/3" />
-                    <div className="h-3 bg-elevated rounded w-full" />
-                    <div className="h-3 bg-elevated rounded w-5/6" />
-                    <div className="h-4 bg-elevated rounded w-1/4 mt-4" />
-                    <div className="h-3 bg-elevated rounded w-full" />
-                    <div className="h-3 bg-elevated rounded w-4/5" />
-                  </div>
-                ) : streamError ? (
-                  <div className="flex items-center gap-2 text-sm text-amber-400">
-                    <AlertTriangle size={14} />
-                    {streamError}
-                  </div>
-                ) : null}
-              </div>
+                </div>
+              )}
             </div>
           )}
         </div>
@@ -451,9 +547,17 @@ export function ConcludeSessionModal({
                     Resume in New Chat
                   </button>
                 )}
+                {(outcome === 'paused' || outcome === 'escalated') && summary && !generatingUpdate && (
+                  <button
+                    onClick={() => { setSummary(''); setCopied(false) }}
+                    className="flex items-center gap-2 px-4 py-2.5 rounded-lg text-sm font-medium text-muted-foreground hover:text-foreground bg-input border border-border hover:border-border-hover transition-all"
+                  >
+                    Switch Format
+                  </button>
+                )}
               </div>
               <div className="flex items-center gap-2">
-                {summary && !streaming && (
+                {summary && !streaming && !generatingUpdate && (
                   <button
                     onClick={handleCopy}
                     className={cn(
diff --git a/frontend/src/pages/AssistantChatPage.tsx b/frontend/src/pages/AssistantChatPage.tsx
index b7afcb7f..38fadb56 100644
--- a/frontend/src/pages/AssistantChatPage.tsx
+++ b/frontend/src/pages/AssistantChatPage.tsx
@@ -1,6 +1,6 @@
 import { useState, useEffect, useRef, useCallback } from 'react'
 import { useLocation, useNavigate, useParams } from 'react-router-dom'
-import { Sparkles, Send, Loader2, Flag, MessageSquare, Paperclip, Terminal, X, RotateCcw, ImagePlus, ListChecks } from 'lucide-react'
+import { Sparkles, Send, Loader2, Flag, MessageSquare, Paperclip, Terminal, X, RotateCcw, ImagePlus, ListChecks, FileText } from 'lucide-react'
 import { cn } from '@/lib/utils'
 import { uploadsApi } from '@/api/uploads'
 import type { PendingUpload } from '@/types/upload'
@@ -14,6 +14,7 @@ import { ChatSidebar, ChatSidebarCollapsedBar } from '@/components/assistant/Cha
 import { ChatMessage } from '@/components/assistant/ChatMessage'
 import { TaskLane } from '@/components/assistant/TaskLane'
 import { ConcludeSessionModal } from '@/components/assistant/ConcludeSessionModal'
+import { StatusUpdateModal } from '@/components/flowpilot/StatusUpdateModal'
 import type { ChatListItem, ConclusionOutcome } from '@/types/assistant-chat'
 import type { SuggestedFlow } from '@/types/copilot'
 
@@ -39,6 +40,7 @@ export default function AssistantChatPage() {
   const [input, setInput] = useState('')
   const [loading, setLoading] = useState(false)
   const [showConclude, setShowConclude] = useState(false)
+  const [showStatusUpdate, setShowStatusUpdate] = useState(false)
   const branching = useBranching()
   const [mobileSidebarOpen, setMobileSidebarOpen] = useState(false)
   const [showLogs, setShowLogs] = useState(false)
@@ -746,10 +748,16 @@ export default function AssistantChatPage() {
                         </button>
                       )}
                       {messages.length >= 2 && (
-                        <button type="button" onClick={() => setShowConclude(true)} disabled={loading} className="flex items-center gap-1.5 rounded-lg px-2 py-1.5 text-xs text-muted-foreground hover:text-amber-400 hover:bg-amber-400/10 transition-colors disabled:opacity-40" title="Conclude session">
-                          <Flag size={14} />
-                          <span className="hidden sm:inline">Conclude</span>
-                        </button>
+                        <>
+                          <button type="button" onClick={() => setShowStatusUpdate(true)} disabled={loading} className="flex items-center gap-1.5 rounded-lg px-2 py-1.5 text-xs text-muted-foreground hover:text-orange-400 hover:bg-orange-500/10 transition-colors disabled:opacity-40" title="Share status update">
+                            <FileText size={14} />
+                            <span className="hidden sm:inline">Update</span>
+                          </button>
+                          <button type="button" onClick={() => setShowConclude(true)} disabled={loading} className="flex items-center gap-1.5 rounded-lg px-2 py-1.5 text-xs text-muted-foreground hover:text-amber-400 hover:bg-amber-400/10 transition-colors disabled:opacity-40" title="Conclude session">
+                            <Flag size={14} />
+                            <span className="hidden sm:inline">Conclude</span>
+                          </button>
+                        </>
                       )}
                       {!showTaskLane && (activeQuestions.length > 0 || activeActions.length > 0) && (
                         <button
@@ -825,6 +833,18 @@ export default function AssistantChatPage() {
         chatTitle={chats.find(c => c.id === activeChatId)?.title ?? 'Chat'}
         sessionId={activeChatId}
       />
+
+      {/* Status Update Modal */}
+      {activeChatId && (
+        <StatusUpdateModal
+          open={showStatusUpdate}
+          onClose={() => setShowStatusUpdate(false)}
+          onGenerate={(audience, length, context) =>
+            aiSessionsApi.generateStatusUpdate(activeChatId, { audience, length, context })
+          }
+          context="status"
+        />
+      )}
     </div>
     </>
   )