diff --git a/packages/acp-client/src/components/AgentPanel.test.tsx b/packages/acp-client/src/components/AgentPanel.test.tsx
index a39e613..2c1da88 100644
--- a/packages/acp-client/src/components/AgentPanel.test.tsx
+++ b/packages/acp-client/src/components/AgentPanel.test.tsx
@@ -293,3 +293,120 @@ describe('AgentPanel auto-scroll behavior', () => {
     expect(screen.getByText(/Partial response/)).toBeTruthy();
   });
 });
+
+// =============================================================================
+// Toolbar row tests
+// =============================================================================
+
+describe('AgentPanel toolbar row', () => {
+  let originalResizeObserver: typeof ResizeObserver;
+  let originalMutationObserver: typeof MutationObserver;
+
+  beforeEach(() => {
+    originalResizeObserver = globalThis.ResizeObserver;
+    originalMutationObserver = globalThis.MutationObserver;
+    globalThis.ResizeObserver = class {
+      observe() {}
+      unobserve() {}
+      disconnect() {}
+    } as unknown as typeof ResizeObserver;
+    globalThis.MutationObserver = class {
+      observe() {}
+      disconnect() {}
+      takeRecords() { return []; }
+    } as unknown as typeof MutationObserver;
+    vi.spyOn(window, 'requestAnimationFrame').mockImplementation((cb) => {
+      cb(performance.now());
+      return 1;
+    });
+  });
+
+  afterEach(() => {
+    globalThis.ResizeObserver = originalResizeObserver;
+    globalThis.MutationObserver = originalMutationObserver;
+    vi.restoreAllMocks();
+  });
+
+  it('renders settings button in toolbar when onSaveSettings provided', () => {
+    const session = createMockSession();
+    const messages = createMockMessages();
+
+    render(
+      <AgentPanel
+        session={session}
+        messages={messages}
+        onSaveSettings={vi.fn()}
+        permissionModes={[{ value: 'default', label: 'Default' }]}
+      />
+    );
+
+    const settingsButton = screen.getByLabelText('Agent settings');
+    expect(settingsButton).toBeTruthy();
+    expect(screen.getByText('Settings')).toBeTruthy();
+  });
+
+  it('cancel button is always visible even when not prompting', () => {
+    const session = createMockSession({ state: 'ready' });
+    const messages = createMockMessages();
+
+    render(<AgentPanel session={session} messages={messages} />);
+
+    const cancelButton = screen.getByLabelText('Cancel agent');
+    expect(cancelButton).toBeTruthy();
+    expect(screen.getByText('Cancel')).toBeTruthy();
+  });
+
+  it('cancel button sends session/cancel when clicked', () => {
+    const sendMessage = vi.fn();
+    const session = createMockSession({ sendMessage });
+    const messages = createMockMessages();
+
+    render(<AgentPanel session={session} messages={messages} />);
+
+    fireEvent.click(screen.getByLabelText('Cancel agent'));
+    expect(sendMessage).toHaveBeenCalledWith({
+      jsonrpc: '2.0',
+      method: 'session/cancel',
+      params: {},
+    });
+  });
+
+  it('cancel button has red styling when prompting', () => {
+    const session = createMockSession({ state: 'prompting' });
+    const messages = createMockMessages();
+
+    render(<AgentPanel session={session} messages={messages} />);
+
+    const cancelButton = screen.getByLabelText('Cancel agent');
+    expect(cancelButton.className).toContain('border-red-300');
+    expect(cancelButton.className).toContain('text-red-600');
+  });
+
+  it('cancel button has muted styling when not prompting', () => {
+    const session = createMockSession({ state: 'ready' });
+    const messages = createMockMessages();
+
+    render(<AgentPanel session={session} messages={messages} />);
+
+    const cancelButton = screen.getByLabelText('Cancel agent');
+    expect(cancelButton.className).toContain('text-gray-400');
+  });
+
+  it('settings button is not inside the form element', () => {
+    const session = createMockSession();
+    const messages = createMockMessages();
+
+    render(
+      <AgentPanel
+        session={session}
+        messages={messages}
+        onSaveSettings={vi.fn()}
+        permissionModes={[{ value: 'default', label: 'Default' }]}
+      />
+    );
+
+    const settingsButton = screen.getByLabelText('Agent settings');
+    const form = screen.getByPlaceholderText(/type \/ for commands/i).closest('form');
+    expect(form!.contains(settingsButton)).toBe(false);
+  });
+});
diff --git a/packages/acp-client/src/components/AgentPanel.tsx b/packages/acp-client/src/components/AgentPanel.tsx
index 0d24b82..f6f0f84 100644
--- a/packages/acp-client/src/components/AgentPanel.tsx
+++ b/packages/acp-client/src/components/AgentPanel.tsx
@@ -279,11 +279,53 @@ export const AgentPanel = React.forwardRef<AgentPanelHandle, AgentPanelProps>(fu
             onClose={() => setShowSettings(false)}
           />
         )}
-        {/* Sticky plan button (above input) */}
-        <StickyPlanButton plan={currentPlan} onClick={() => setShowPlanModal(true)} />
-        {currentPlan && (
-          <PlanModal plan={currentPlan} isOpen={showPlanModal} onClose={() => setShowPlanModal(false)} />
-        )}
+        {/* Toolbar row: settings, plan, cancel */}
+        <div className="flex items-center gap-2 mb-2">
+          {/* Settings gear button */}
+          {onSaveSettings && (
+            <button
+              type="button"
+              onClick={() => setShowSettings((prev) => !prev)}
+              className={`flex items-center space-x-1.5 px-3 py-1.5 text-xs font-medium rounded-md border transition-colors ${
+                showSettings
+                  ? 'bg-blue-50 border-blue-300 text-blue-600'
+                  : 'bg-gray-50 border-gray-300 text-gray-600 hover:bg-gray-100'
+              }`}
+              aria-label="Agent settings"
+              title="Agent settings"
+            >
+              <svg width="14" height="14" viewBox="0 0 24 24" fill="none" stroke="currentColor" strokeWidth="2" strokeLinecap="round" strokeLinejoin="round" className="flex-shrink-0">
+                <circle cx="12" cy="12" r="3" />
+                <path d="M19.4 15a1.65 1.65 0 0 0 .33 1.82l.06.06a2 2 0 0 1 0 2.83 2 2 0 0 1-2.83 0l-.06-.06a1.65 1.65 0 0 0-1.82-.33 1.65 1.65 0 0 0-1 1.51V21a2 2 0 0 1-2 2 2 2 0 0 1-2-2v-.09A1.65 1.65 0 0 0 9 19.4a1.65 1.65 0 0 0-1.82.33l-.06.06a2 2 0 0 1-2.83 0 2 2 0 0 1 0-2.83l.06-.06A1.65 1.65 0 0 0 4.68 15a1.65 1.65 0 0 0-1.51-1H3a2 2 0 0 1-2-2 2 2 0 0 1 2-2h.09A1.65 1.65 0 0 0 4.6 9a1.65 1.65 0 0 0-.33-1.82l-.06-.06a2 2 0 0 1 0-2.83 2 2 0 0 1 2.83 0l.06.06A1.65 1.65 0 0 0 9 4.68a1.65 1.65 0 0 0 1-1.51V3a2 2 0 0 1 2-2 2 2 0 0 1 2 2v.09a1.65 1.65 0 0 0 1 1.51 1.65 1.65 0 0 0 1.82-.33l.06-.06a2 2 0 0 1 2.83 0 2 2 0 0 1 0 2.83l-.06.06A1.65 1.65 0 0 0 19.4 9a1.65 1.65 0 0 0 1.51 1H21a2 2 0 0 1 2 2 2 2 0 0 1-2 2h-.09a1.65 1.65 0 0 0-1.51 1z" />
+              </svg>
+              <span>Settings</span>
+            </button>
+          )}
+          {/* Plan button */}
+          <StickyPlanButton plan={currentPlan} onClick={() => setShowPlanModal(true)} />
+          {currentPlan && (
+            <PlanModal plan={currentPlan} isOpen={showPlanModal} onClose={() => setShowPlanModal(false)} />
+          )}
+          {/* Cancel button — always visible so user can force-cancel unreported activity */}
+          <button
+            type="button"
+            onClick={() => session.sendMessage({ jsonrpc: '2.0', method: 'session/cancel', params: {} })}
+            className={`ml-auto flex items-center space-x-1.5 px-3 py-1.5 text-xs font-medium rounded-md border transition-colors ${
+              isPrompting
+                ? 'border-red-300 bg-red-50 text-red-600 hover:bg-red-100'
+                : 'border-gray-300 bg-gray-50 text-gray-400 hover:bg-gray-100 hover:text-gray-600'
+            }`}
+            aria-label="Cancel agent"
+            title="Send cancel signal to agent"
+          >
+            <svg width="14" height="14" viewBox="0 0 24 24" fill="none" stroke="currentColor" strokeWidth="2" strokeLinecap="round" strokeLinejoin="round" className="flex-shrink-0">
+              <circle cx="12" cy="12" r="10" />
+              <line x1="15" y1="9" x2="9" y2="15" />
+              <line x1="9" y1="9" x2="15" y2="15" />
+            </svg>
+            <span>Cancel</span>
+          </button>
+        </div>
         {/* Slash command palette (above input, in document flow) */}
         <SlashCommandPalette
           ref={paletteRef}
@@ -294,26 +336,6 @@ export const AgentPanel = React.forwardRef<AgentPanelHandle, AgentPanelProps>(fu
           visible={showPalette}
         />
         <form onSubmit={handleSubmit} className="flex items-end space-x-2">
-            {/* Settings gear button */}
-            {onSaveSettings && (
-              <button
-                type="button"
-                onClick={() => setShowSettings((prev) => !prev)}
-                className={`p-2 rounded-md border transition-colors flex-shrink-0 ${
-                  showSettings
-                    ? 'bg-blue-50 border-blue-300 text-blue-600'
-                    : 'bg-white border-gray-300 text-gray-400 hover:text-gray-600 hover:bg-gray-50'
-                }`}
-                style={{ minHeight: 38, minWidth: 38 }}
-                aria-label="Agent settings"
-                title="Agent settings"
-              >
-                <svg width="16" height="16" viewBox="0 0 24 24" fill="none" stroke="currentColor" strokeWidth="2" strokeLinecap="round" strokeLinejoin="round">
-                  <circle cx="12" cy="12" r="3" />
-                  <path d="M19.4 15a1.65 1.65 0 0 0 .33 1.82l.06.06a2 2 0 0 1 0 2.83 2 2 0 0 1-2.83 0l-.06-.06a1.65 1.65 0 0 0-1.82-.33 1.65 1.65 0 0 0-1 1.51V21a2 2 0 0 1-2 2 2 2 0 0 1-2-2v-.09A1.65 1.65 0 0 0 9 19.4a1.65 1.65 0 0 0-1.82.33l-.06.06a2 2 0 0 1-2.83 0 2 2 0 0 1 0-2.83l.06-.06A1.65 1.65 0 0 0 4.68 15a1.65 1.65 0 0 0-1.51-1H3a2 2 0 0 1-2-2 2 2 0 0 1 2-2h.09A1.65 1.65 0 0 0 4.6 9a1.65 1.65 0 0 0-.33-1.82l-.06-.06a2 2 0 0 1 0-2.83 2 2 0 0 1 2.83 0l.06.06A1.65 1.65 0 0 0 9 4.68a1.65 1.65 0 0 0 1-1.51V3a2 2 0 0 1 2-2 2 2 0 0 1 2 2v.09a1.65 1.65 0 0 0 1 1.51 1.65 1.65 0 0 0 1.82-.33l.06-.06a2 2 0 0 1 2.83 0 2 2 0 0 1 0 2.83l-.06.06A1.65 1.65 0 0 0 19.4 9a1.65 1.65 0 0 0 1.51 1H21a2 2 0 0 1 2 2 2 2 0 0 1-2 2h-.09a1.65 1.65 0 0 0-1.51 1z" />
-                </svg>
-              </button>
-            )}
             <textarea
               ref={inputRef}
               value={input}
@@ -340,16 +362,6 @@ export const AgentPanel = React.forwardRef<AgentPanelHandle, AgentPanelProps>(fu
             >
               Send
             </button>
-            {isPrompting && (
-              <button
-                type="button"
-                onClick={() => session.sendMessage({ jsonrpc: '2.0', method: 'session/cancel', params: {} })}
-                className="px-3 py-2 text-sm text-red-600 border border-red-300 rounded-md hover:bg-red-50"
-                style={{ minHeight: 44 }}
-              >
-                Cancel
-              </button>
-            )}
           </form>
         {/* Usage indicator */}
         <div className="mt-2 flex justify-end">
diff --git a/packages/acp-client/src/components/StickyPlanButton.tsx b/packages/acp-client/src/components/StickyPlanButton.tsx
index 6d0edc9..21bf0cd 100644
--- a/packages/acp-client/src/components/StickyPlanButton.tsx
+++ b/packages/acp-client/src/components/StickyPlanButton.tsx
@@ -29,7 +29,7 @@ export const StickyPlanButton: React.FC<StickyPlanButtonProps> = ({ plan, onClic
     <button
       type="button"
       onClick={onClick}
-      className={`flex items-center space-x-2 px-3 py-1.5 mb-2 text-xs font-medium rounded-md border transition-colors ${borderClass}`}
+      className={`flex items-center space-x-2 px-3 py-1.5 text-xs font-medium rounded-md border transition-colors ${borderClass}`}
       title={`Plan: ${completed}/${total} complete`}
       aria-label={`View plan, ${completed} of ${total} steps complete`}
     >