diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0f04c9e..9637c92 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,11 @@
 
 ## Unreleased
 
+### Changed
+
+- improved workspace status reporting (icon and colors) when it is failed, stopping, deleting, stopped or when we are
+  establishing the SSH connection.
+
 ## 0.2.2 - 2025-05-21
 
 ### Added
diff --git a/src/main/kotlin/com/coder/toolbox/CoderRemoteEnvironment.kt b/src/main/kotlin/com/coder/toolbox/CoderRemoteEnvironment.kt
index 9effe19..e6118c3 100644
--- a/src/main/kotlin/com/coder/toolbox/CoderRemoteEnvironment.kt
+++ b/src/main/kotlin/com/coder/toolbox/CoderRemoteEnvironment.kt
@@ -157,6 +157,11 @@ class CoderRemoteEnvironment(
 
     override fun beforeConnection() {
         context.logger.info("Connecting to $id...")
+        context.cs.launch {
+            state.update {
+                wsRawStatus.toSshConnectingEnvState(context)
+            }
+        }
         isConnected.update { true }
         pollJob = pollNetworkMetrics()
     }
diff --git a/src/main/kotlin/com/coder/toolbox/models/WorkspaceAndAgentStatus.kt b/src/main/kotlin/com/coder/toolbox/models/WorkspaceAndAgentStatus.kt
index 7a67b36..3c9ad5f 100644
--- a/src/main/kotlin/com/coder/toolbox/models/WorkspaceAndAgentStatus.kt
+++ b/src/main/kotlin/com/coder/toolbox/models/WorkspaceAndAgentStatus.kt
@@ -11,6 +11,9 @@ import com.jetbrains.toolbox.api.remoteDev.states.CustomRemoteEnvironmentState
 import com.jetbrains.toolbox.api.remoteDev.states.EnvironmentStateIcons
 import com.jetbrains.toolbox.api.remoteDev.states.StandardRemoteEnvironmentState
 
+
+private val CircularSpinner: EnvironmentStateIcons = EnvironmentStateIcons.Connecting
+
 /**
  * WorkspaceAndAgentStatus represents the combined status of a single agent and
  * its workspace (or just the workspace if there are no agents).
@@ -69,23 +72,34 @@ enum class WorkspaceAndAgentStatus(val label: String, val description: String) {
     }
 
     private fun getStateColor(context: CoderToolboxContext): StateColor {
-        return if (ready()) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Active)
-        else if (unhealthy()) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Unhealthy)
-        else if (canStart()) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Failed)
-        else if (pending()) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Activating)
+        return if (this == FAILED) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.FailedToStart)
         else if (this == DELETING) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Deleting)
         else if (this == DELETED) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Deleted)
+        else if (ready()) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Active)
+        else if (unhealthy()) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Unhealthy)
+        else if (canStart() || this == STOPPING) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Hibernating)
+        else if (pending()) context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Activating)
         else context.envStateColorPalette.getColor(StandardRemoteEnvironmentState.Unreachable)
     }
 
     private fun getStateIcon(): EnvironmentStateIcons {
-        return if (ready() || unhealthy()) EnvironmentStateIcons.Active
-        else if (canStart()) EnvironmentStateIcons.Hibernated
-        else if (pending()) EnvironmentStateIcons.Connecting
-        else if (this == DELETING || this == DELETED) EnvironmentStateIcons.Offline
+        return if (this == FAILED) EnvironmentStateIcons.Error
+        else if (pending() || this == DELETING || this == DELETED || this == STOPPING) CircularSpinner
+        else if (ready() || unhealthy()) EnvironmentStateIcons.Active
+        else if (canStart()) EnvironmentStateIcons.Offline
         else EnvironmentStateIcons.NoIcon
     }
 
+    fun toSshConnectingEnvState(context: CoderToolboxContext): CustomRemoteEnvironmentState {
+        val existingState = toRemoteEnvironmentState(context)
+        return CustomRemoteEnvironmentState(
+            "SSHing",
+            existingState.color,
+            existingState.isReachable,
+            EnvironmentStateIcons.Connecting
+        )
+    }
+
     /**
      * Return true if the agent is in a connectable state.
      */