diff --git a/packages/kilo-jetbrains/backend/src/test/kotlin/ai/kilocode/backend/app/KiloBackendAppServiceTest.kt b/packages/kilo-jetbrains/backend/src/test/kotlin/ai/kilocode/backend/app/KiloBackendAppServiceTest.kt
index 42879a11459..b3cfc1b486f 100644
--- a/packages/kilo-jetbrains/backend/src/test/kotlin/ai/kilocode/backend/app/KiloBackendAppServiceTest.kt
+++ b/packages/kilo-jetbrains/backend/src/test/kotlin/ai/kilocode/backend/app/KiloBackendAppServiceTest.kt
@@ -12,9 +12,9 @@ import kotlinx.coroutines.SupervisorJob
 import kotlinx.coroutines.cancel
 import kotlinx.coroutines.delay
 import kotlinx.coroutines.flow.first
-import kotlinx.coroutines.launch
 import kotlinx.coroutines.runBlocking
 import kotlinx.coroutines.withTimeout
+import java.util.concurrent.CountDownLatch
 import kotlin.test.AfterTest
 import kotlin.test.Test
 import kotlin.test.assertEquals
@@ -366,25 +366,26 @@ class KiloBackendAppServiceTest {
 
     @Test
     fun `loading tracks progress through Loading state`() = runBlocking {
+        val gate = CountDownLatch(1)
+        mock.responseGate = gate
         val svc = create()
-        val states = mutableListOf<KiloAppState>()
 
-        val collector = scope.launch {
-            svc.appState.collect { states.add(it) }
+        try {
+            svc.connect()
+
+            val loading = withTimeout(10_000) {
+                svc.appState.first { it is KiloAppState.Loading }
+            }
+            assertIs<KiloAppState.Loading>(loading)
+
+            gate.countDown()
+            val ready = withTimeout(10_000) {
+                svc.appState.first { it is KiloAppState.Ready }
+            }
+            assertIs<KiloAppState.Ready>(ready)
+        } finally {
+            gate.countDown()
         }
-
-        svc.connect()
-
-        withTimeout(10_000) {
-            svc.appState.first { it is KiloAppState.Ready }
-        }
-
-        collector.cancel()
-
-        // Should have passed through Loading at least once
-        assertTrue(states.any { it is KiloAppState.Loading })
-        // Should have reached Ready
-        assertTrue(states.any { it is KiloAppState.Ready })
     }
 
     @Test
diff --git a/packages/kilo-jetbrains/backend/src/test/kotlin/ai/kilocode/backend/testing/MockCliServer.kt b/packages/kilo-jetbrains/backend/src/test/kotlin/ai/kilocode/backend/testing/MockCliServer.kt
index e98c52c0429..f40013e7ade 100644
--- a/packages/kilo-jetbrains/backend/src/test/kotlin/ai/kilocode/backend/testing/MockCliServer.kt
+++ b/packages/kilo-jetbrains/backend/src/test/kotlin/ai/kilocode/backend/testing/MockCliServer.kt
@@ -81,6 +81,9 @@ class MockCliServer : AutoCloseable {
     /** Configurable delay for all endpoint responses (ms). 0 = no delay. */
     @Volatile var responseDelay: Long = 0
 
+    /** Optional gate for REST responses; SSE stays unblocked so the app can enter Loading. */
+    @Volatile var responseGate: CountDownLatch? = null
+
     /** Request counts by bare path (e.g. "/session" or "/global/config"). Thread-safe. */
     private val counts = ConcurrentHashMap<String, AtomicInteger>()
 
@@ -209,6 +212,7 @@ class MockCliServer : AutoCloseable {
             // Optional delay for race condition testing
             val delay = responseDelay
             if (delay > 0) Thread.sleep(delay)
+            if (bare != "/global/event") responseGate?.await()
 
             when {
                 path == "/global/health" -> respond(output, 200, health)