diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index 8e447272..b410e778 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -42,6 +42,7 @@
 - Hook API: `pi.registerFlag(name, options)` and `pi.getFlag(name)` for hooks to register custom CLI flags (parsed automatically)
 - Hook API: `pi.registerShortcut(shortcut, options)` for hooks to register custom keyboard shortcuts (e.g., `shift+p`, `ctrl+shift+x`). Conflicts with built-in shortcuts are skipped, conflicts between hooks logged as warnings.
 - Hook API: `ctx.ui.setWidget(key, lines)` for multi-line status displays above the editor (todo lists, progress tracking)
+- Hook API: `ctx.ui.setWidgetComponent(key, factory)` for custom TUI components as widgets (no focus, renders inline)
 - Hook API: `theme.strikethrough(text)` for strikethrough text styling
 - `/hotkeys` command now shows hook-registered shortcuts in a separate "Hooks" section
 - New example hook: `plan-mode.ts` - Claude Code-style read-only exploration mode:
diff --git a/packages/coding-agent/docs/hooks.md b/packages/coding-agent/docs/hooks.md
index 9343fdeb..ac8d70c1 100644
--- a/packages/coding-agent/docs/hooks.md
+++ b/packages/coding-agent/docs/hooks.md
@@ -446,9 +446,25 @@ const currentText = ctx.ui.getEditorText();
 **Widget notes:**
 - Widgets are multi-line displays shown above the editor (below "Working..." indicator)
 - Multiple hooks can set widgets using unique keys (all widgets are displayed, stacked vertically)
-- Use for progress lists, todo tracking, or any multi-line status
+- Use `setWidget()` for simple styled text, `setWidgetComponent()` for custom components
 - Supports ANSI styling via `ctx.ui.theme` (including `strikethrough`)
-- **Caution:** Keep widgets small (a few lines). Large widgets from multiple hooks can cause viewport overflow and TUI flicker.
+- **Caution:** Keep widgets small (a few lines). Large widgets from multiple hooks can cause viewport overflow and TUI flicker. Max 10 lines total across all string widgets.
+
+**Custom widget components:**
+
+For more complex widgets, use `setWidgetComponent()` to render a custom TUI component:
+
+```typescript
+ctx.ui.setWidgetComponent("my-widget", (tui, theme) => {
+  // Return any Component that implements render(width): string[]
+  return new MyCustomComponent(tui, theme);
+});
+
+// Clear the widget
+ctx.ui.setWidgetComponent("my-widget", undefined);
+```
+
+Unlike `ctx.ui.custom()`, widget components do NOT take keyboard focus - they render inline above the editor.
 
 **Styling with theme colors:**
 
diff --git a/packages/coding-agent/src/core/custom-tools/loader.ts b/packages/coding-agent/src/core/custom-tools/loader.ts
index 1f72c41e..517f3f42 100644
--- a/packages/coding-agent/src/core/custom-tools/loader.ts
+++ b/packages/coding-agent/src/core/custom-tools/loader.ts
@@ -93,6 +93,7 @@ function createNoOpUIContext(): HookUIContext {
 		notify: () => {},
 		setStatus: () => {},
 		setWidget: () => {},
+		setWidgetComponent: () => {},
 		custom: async () => undefined as never,
 		setEditorText: () => {},
 		getEditorText: () => "",
diff --git a/packages/coding-agent/src/core/hooks/runner.ts b/packages/coding-agent/src/core/hooks/runner.ts
index 3024b15c..d6155184 100644
--- a/packages/coding-agent/src/core/hooks/runner.ts
+++ b/packages/coding-agent/src/core/hooks/runner.ts
@@ -50,6 +50,7 @@ const noOpUIContext: HookUIContext = {
 	notify: () => {},
 	setStatus: () => {},
 	setWidget: () => {},
+	setWidgetComponent: () => {},
 	custom: async () => undefined as never,
 	setEditorText: () => {},
 	getEditorText: () => "",
diff --git a/packages/coding-agent/src/core/hooks/types.ts b/packages/coding-agent/src/core/hooks/types.ts
index 3f71d427..8ddec584 100644
--- a/packages/coding-agent/src/core/hooks/types.ts
+++ b/packages/coding-agent/src/core/hooks/types.ts
@@ -79,6 +79,8 @@ export interface HookUIContext {
 	 * Supports multi-line content. Pass undefined to clear.
 	 * Text can include ANSI escape codes for styling.
 	 *
+	 * For simple text displays, use this method. For custom components, use setWidgetComponent().
+	 *
 	 * @param key - Unique key to identify this widget (e.g., hook name)
 	 * @param lines - Array of lines to display, or undefined to clear
 	 *
@@ -96,6 +98,31 @@ export interface HookUIContext {
 	 */
 	setWidget(key: string, lines: string[] | undefined): void;
 
+	/**
+	 * Set a custom component as a widget (above the editor, below "Working..." indicator).
+	 * Unlike custom(), this does NOT take keyboard focus - the editor remains focused.
+	 * Pass undefined to clear the widget.
+	 *
+	 * The component should implement render(width) and optionally dispose().
+	 * Components are rendered inline without taking focus - they cannot handle keyboard input.
+	 *
+	 * @param key - Unique key to identify this widget (e.g., hook name)
+	 * @param factory - Function that creates the component, or undefined to clear
+	 *
+	 * @example
+	 * // Show a custom progress component
+	 * ctx.ui.setWidgetComponent("my-progress", (tui, theme) => {
+	 *   return new MyProgressComponent(tui, theme);
+	 * });
+	 *
+	 * // Clear the widget
+	 * ctx.ui.setWidgetComponent("my-progress", undefined);
+	 */
+	setWidgetComponent(
+		key: string,
+		factory: ((tui: TUI, theme: Theme) => Component & { dispose?(): void }) | undefined,
+	): void;
+
 	/**
 	 * Show a custom component with keyboard focus.
 	 * The factory receives TUI, theme, and a done() callback to close the component.
diff --git a/packages/coding-agent/src/modes/interactive/interactive-mode.ts b/packages/coding-agent/src/modes/interactive/interactive-mode.ts
index 8c175950..c219b29b 100644
--- a/packages/coding-agent/src/modes/interactive/interactive-mode.ts
+++ b/packages/coding-agent/src/modes/interactive/interactive-mode.ts
@@ -141,8 +141,9 @@ export class InteractiveMode {
 	private hookInput: HookInputComponent | undefined = undefined;
 	private hookEditor: HookEditorComponent | undefined = undefined;
 
-	// Hook widgets (multi-line status displays)
+	// Hook widgets (multi-line status displays or custom components)
 	private hookWidgets = new Map<string, string[]>();
+	private hookWidgetComponents = new Map<string, Component & { dispose?(): void }>();
 	private widgetContainer!: Container;
 
 	// Custom tools for custom rendering
@@ -628,11 +629,39 @@ export class InteractiveMode {
 		if (lines === undefined) {
 			this.hookWidgets.delete(key);
 		} else {
+			// Clear any component widget with same key
+			const existing = this.hookWidgetComponents.get(key);
+			if (existing?.dispose) existing.dispose();
+			this.hookWidgetComponents.delete(key);
+
 			this.hookWidgets.set(key, lines);
 		}
 		this.renderWidgets();
 	}
 
+	/**
+	 * Set a hook widget component (custom component without focus).
+	 */
+	private setHookWidgetComponent(
+		key: string,
+		factory: ((tui: TUI, thm: Theme) => Component & { dispose?(): void }) | undefined,
+	): void {
+		// Dispose existing component
+		const existing = this.hookWidgetComponents.get(key);
+		if (existing?.dispose) existing.dispose();
+
+		if (factory === undefined) {
+			this.hookWidgetComponents.delete(key);
+		} else {
+			// Clear any string widget with same key
+			this.hookWidgets.delete(key);
+
+			const component = factory(this.ui, theme);
+			this.hookWidgetComponents.set(key, component);
+		}
+		this.renderWidgets();
+	}
+
 	// Maximum total widget lines to prevent viewport overflow
 	private static readonly MAX_WIDGET_LINES = 10;
 
@@ -643,17 +672,19 @@ export class InteractiveMode {
 		if (!this.widgetContainer) return;
 		this.widgetContainer.clear();
 
-		if (this.hookWidgets.size === 0) {
+		const hasStringWidgets = this.hookWidgets.size > 0;
+		const hasComponentWidgets = this.hookWidgetComponents.size > 0;
+
+		if (!hasStringWidgets && !hasComponentWidgets) {
 			this.ui.requestRender();
 			return;
 		}
 
-		// Render each widget, respecting max lines to prevent viewport overflow
+		// Render string widgets first, respecting max lines
 		let totalLines = 0;
 		for (const [_key, lines] of this.hookWidgets) {
 			for (const line of lines) {
 				if (totalLines >= InteractiveMode.MAX_WIDGET_LINES) {
-					// Add truncation indicator and stop
 					this.widgetContainer.addChild(new Text(theme.fg("muted", "... (widget truncated)"), 1, 0));
 					this.ui.requestRender();
 					return;
@@ -663,6 +694,11 @@ export class InteractiveMode {
 			}
 		}
 
+		// Render component widgets
+		for (const [_key, component] of this.hookWidgetComponents) {
+			this.widgetContainer.addChild(component);
+		}
+
 		this.ui.requestRender();
 	}
 
@@ -677,6 +713,7 @@ export class InteractiveMode {
 			notify: (message, type) => this.showHookNotify(message, type),
 			setStatus: (key, text) => this.setHookStatus(key, text),
 			setWidget: (key, lines) => this.setHookWidget(key, lines),
+			setWidgetComponent: (key, factory) => this.setHookWidgetComponent(key, factory),
 			custom: (factory) => this.showHookCustom(factory),
 			setEditorText: (text) => this.editor.setText(text),
 			getEditorText: () => this.editor.getText(),
diff --git a/packages/coding-agent/src/modes/rpc/rpc-mode.ts b/packages/coding-agent/src/modes/rpc/rpc-mode.ts
index a0505a62..c35e6222 100644
--- a/packages/coding-agent/src/modes/rpc/rpc-mode.ts
+++ b/packages/coding-agent/src/modes/rpc/rpc-mode.ts
@@ -142,6 +142,10 @@ export async function runRpcMode(session: AgentSession): Promise<never> {
 			} as RpcHookUIRequest);
 		},
 
+		setWidgetComponent(): void {
+			// Custom components not supported in RPC mode - host would need to implement
+		},
+
 		async custom() {
 			// Custom UI not supported in RPC mode
 			return undefined as never;
diff --git a/packages/coding-agent/test/compaction-hooks.test.ts b/packages/coding-agent/test/compaction-hooks.test.ts
index 99f2c1ab..7c2a21e7 100644
--- a/packages/coding-agent/test/compaction-hooks.test.ts
+++ b/packages/coding-agent/test/compaction-hooks.test.ts
@@ -121,6 +121,7 @@ describe.skipIf(!API_KEY)("Compaction hooks", () => {
 				notify: () => {},
 				setStatus: () => {},
 				setWidget: () => {},
+				setWidgetComponent: () => {},
 				custom: async () => undefined as never,
 				setEditorText: () => {},
 				getEditorText: () => "",