diff --git a/server/src/__tests__/heartbeat-worktree-suppression.test.ts b/server/src/__tests__/heartbeat-worktree-suppression.test.ts
index 71d9255eff..bb1e23c944 100644
--- a/server/src/__tests__/heartbeat-worktree-suppression.test.ts
+++ b/server/src/__tests__/heartbeat-worktree-suppression.test.ts
@@ -36,19 +36,36 @@ describeEmbeddedPostgres("heartbeat worktree suppression", () => {
   let db!: ReturnType<typeof createDb>;
   let tempDb: Awaited<ReturnType<typeof startEmbeddedPostgresTestDatabase>> | null = null;
 
+  function isHeartbeatRunEventFkError(error: unknown) {
+    const message = error instanceof Error ? `${error.message} ${String(error.cause ?? "")}` : String(error);
+    return message.includes("heartbeat_run_events_run_id_heartbeat_runs_id_fk");
+  }
+
+  async function deleteHeartbeatRunsWithEvents() {
+    for (let attempt = 0; attempt < 5; attempt += 1) {
+      await db.delete(heartbeatRunEvents);
+      try {
+        await db.delete(heartbeatRuns);
+        return;
+      } catch (error) {
+        if (!isHeartbeatRunEventFkError(error) || attempt === 4) throw error;
+        await new Promise((resolve) => setTimeout(resolve, 25));
+      }
+    }
+  }
+
   beforeAll(async () => {
     tempDb = await startEmbeddedPostgresTestDatabase("heartbeat-worktree-suppression-");
     db = createDb(tempDb.connectionString);
   }, 20_000);
 
   afterEach(async () => {
-    await db.delete(heartbeatRunEvents);
     await db.delete(issueComments);
     await db.delete(issueDocuments);
     await db.delete(documentRevisions);
     await db.delete(documents);
     await db.delete(activityLog);
-    await db.delete(heartbeatRuns);
+    await deleteHeartbeatRunsWithEvents();
     await db.delete(agentWakeupRequests);
     await db.delete(issues);
     await db.delete(agentRuntimeState);
diff --git a/ui/src/components/SidebarStarredProjects.test.tsx b/ui/src/components/SidebarStarredProjects.test.tsx
index 501da6a2d3..e8088f4f46 100644
--- a/ui/src/components/SidebarStarredProjects.test.tsx
+++ b/ui/src/components/SidebarStarredProjects.test.tsx
@@ -112,6 +112,10 @@ function projectLinkLabels(container: HTMLElement) {
     .filter(Boolean);
 }
 
+function projectLink(container: HTMLElement, projectRef: string) {
+  return container.querySelector(`a[href="/projects/${projectRef}/issues"]`) as HTMLAnchorElement | null;
+}
+
 describe("SidebarStarredProjects", () => {
   let container: HTMLDivElement;
   let root: ReturnType<typeof createRoot> | null;
@@ -176,6 +180,30 @@ describe("SidebarStarredProjects", () => {
     expect(document.body.querySelector('button[aria-label="Unstar Bravo"]')).not.toBeNull();
   });
 
+  it("keeps starred projects indented only outside the collapsed rail", async () => {
+    mockProjectsApi.list.mockResolvedValue([
+      makeProject({ id: "project-a", name: "Alpha", urlKey: "alpha" }),
+    ]);
+    memberships = { ...memberships, starredProjectIds: ["project-a"] };
+
+    await render();
+
+    expect(projectLink(container, "alpha")?.className).toContain("pl-8");
+
+    await act(async () => root?.unmount());
+    root = null;
+    container.innerHTML = "";
+    queryClient = new QueryClient({ defaultOptions: { queries: { retry: false }, mutations: { retry: false } } });
+    mockSidebarState.collapsed = true;
+
+    await render();
+
+    const railProjectLink = projectLink(container, "alpha");
+    expect(railProjectLink?.className).not.toContain("pl-8");
+    const nameSpan = Array.from(container.querySelectorAll("span")).find((el) => el.textContent === "Alpha");
+    expect(nameSpan?.className).toContain("w-0");
+  });
+
   it("renders nothing when no projects are starred", async () => {
     mockProjectsApi.list.mockResolvedValue([makeProject({ id: "project-a", name: "Alpha" })]);
 
diff --git a/ui/src/components/SidebarStarredProjects.tsx b/ui/src/components/SidebarStarredProjects.tsx
index 1b0925666e..f6e8711b17 100644
--- a/ui/src/components/SidebarStarredProjects.tsx
+++ b/ui/src/components/SidebarStarredProjects.tsx
@@ -121,7 +121,8 @@ export function SidebarStarredProjects() {
               if (isMobile) setSidebarOpen(false);
             }}
             className={cn(
-              "flex min-w-0 flex-1 items-center gap-2.5 px-3 py-1.5 pl-8 pointer-coarse:py-1 pr-8 text-(length:--text-compact) font-medium transition-colors",
+              "flex min-w-0 flex-1 items-center gap-2.5 px-3 py-1.5 pointer-coarse:py-1 pr-8 text-(length:--text-compact) font-medium transition-colors",
+              !rail && "pl-8",
               isActive
                 ? "bg-accent text-foreground"
                 : "text-foreground/80 hover:bg-accent/50 hover:text-foreground",