diff --git a/packages/ui/src/features/sessions/components/SessionResourcesBar.stories.tsx b/packages/ui/src/features/sessions/components/SessionResourcesBar.stories.tsx
new file mode 100644
index 000000000..be1da4f1e
--- /dev/null
+++ b/packages/ui/src/features/sessions/components/SessionResourcesBar.stories.tsx
@@ -0,0 +1,143 @@
+import {
+  POSTHOG_PRODUCTS,
+  type PostHogProductId,
+} from "@posthog/agent/posthog-products";
+import type { AcpMessage } from "@posthog/shared";
+import { SessionResourcesBar } from "@posthog/ui/features/sessions/components/SessionResourcesBar";
+import type { Meta, StoryObj } from "@storybook/react-vite";
+
+const meta: Meta<typeof SessionResourcesBar> = {
+  title: "Sessions/SessionResourcesBar",
+  component: SessionResourcesBar,
+  parameters: {
+    layout: "fullscreen",
+  },
+};
+
+export default meta;
+type Story = StoryObj<typeof SessionResourcesBar>;
+
+/**
+ * Build the `_posthog/resources_used` notification the bar accumulates from,
+ * one product per event — mirroring how the agent reports usage turn by turn.
+ */
+const resourcesUsedEvents = (ids: PostHogProductId[]): AcpMessage[] =>
+  ids.map((id, index) => ({
+    type: "acp_message" as const,
+    ts: index + 1,
+    message: {
+      jsonrpc: "2.0" as const,
+      method: "_posthog/resources_used",
+      params: {
+        sessionId: "session-1",
+        products: [{ id, label: POSTHOG_PRODUCTS[id] }],
+      },
+    },
+  }));
+
+const ALL_PRODUCT_IDS = Object.keys(POSTHOG_PRODUCTS) as PostHogProductId[];
+
+export const FewResources: Story = {
+  args: {
+    events: resourcesUsedEvents([
+      "feature_flags",
+      "experiments",
+      "product_analytics",
+    ]),
+  },
+  parameters: {
+    docs: {
+      description: {
+        story:
+          "The common case: a handful of compact chips on a single row, each linking to the product's docs.",
+      },
+    },
+  },
+};
+
+export const AtChipLimit: Story = {
+  args: {
+    events: resourcesUsedEvents([
+      "product_analytics",
+      "web_analytics",
+      "feature_flags",
+      "experiments",
+      "error_tracking",
+      "session_replay",
+    ]),
+  },
+  parameters: {
+    docs: {
+      description: {
+        story:
+          "Exactly six products — the maximum shown before collapsing — so no overflow badge appears.",
+      },
+    },
+  },
+};
+
+export const OverflowCollapsed: Story = {
+  args: {
+    events: resourcesUsedEvents(ALL_PRODUCT_IDS),
+  },
+  parameters: {
+    docs: {
+      description: {
+        story:
+          "Every product used: only the first six chips render, with the rest collapsed behind a clickable “+N more” badge that toggles to “Show less”.",
+      },
+    },
+  },
+};
+
+export const WithNonClickableChip: Story = {
+  args: {
+    events: resourcesUsedEvents(["llm_analytics", "apm", "logs"]),
+  },
+  parameters: {
+    docs: {
+      description: {
+        story:
+          "APM has no dedicated docs page, so its chip renders without a pointer cursor, hover state, or link.",
+      },
+    },
+  },
+};
+
+export const NarrowContainer: Story = {
+  args: {
+    events: resourcesUsedEvents([
+      "product_analytics",
+      "data_warehouse",
+      "error_tracking",
+    ]),
+  },
+  decorators: [
+    (Story) => (
+      <div style={{ maxWidth: 130 }}>
+        <Story />
+      </div>
+    ),
+  ],
+  parameters: {
+    docs: {
+      description: {
+        story:
+          "In a narrow container, chips wrap and a label wider than the row truncates with an ellipsis instead of overflowing.",
+      },
+    },
+  },
+};
+
+export const NoResources: Story = {
+  args: {
+    events: [],
+  },
+  parameters: {
+    docs: {
+      description: {
+        story: "When no products have been used yet, the bar is hidden.",
+      },
+    },
+  },
+};
diff --git a/packages/ui/src/features/sessions/components/SessionResourcesBar.tsx b/packages/ui/src/features/sessions/components/SessionResourcesBar.tsx
index d2f72aef5..143d872ed 100644
--- a/packages/ui/src/features/sessions/components/SessionResourcesBar.tsx
+++ b/packages/ui/src/features/sessions/components/SessionResourcesBar.tsx
@@ -20,7 +20,7 @@ import type { AcpMessage } from "@posthog/shared";
 import { CHAT_CONTENT_MAX_WIDTH } from "@posthog/ui/features/sessions/constants";
 import { openUrlInBrowser } from "@posthog/ui/utils/browser";
 import { Badge, Box, Flex, Text } from "@radix-ui/themes";
-import { type ComponentType, useMemo } from "react";
+import { type ComponentType, useMemo, useState } from "react";
 import { accumulateSessionResources } from "./accumulateSessionResources";
 
 /**
@@ -70,6 +70,13 @@ interface SessionResourcesBarProps {
   events: AcpMessage[];
 }
 
+/**
+ * How many chips to show before collapsing the rest behind a "+N" badge.
+ * Keeps the bar to a single tidy row in the common case; the user can expand
+ * to reveal everything when the agent has touched a lot of products.
+ */
+const MAX_VISIBLE_CHIPS = 6;
+
 /**
  * Persistent bar above the composer listing the PostHog products the agent has
  * touched so far this session — via the MCP `exec` tool, or by reading a file
@@ -79,17 +86,28 @@ interface SessionResourcesBarProps {
  */
 export function SessionResourcesBar({ events }: SessionResourcesBarProps) {
   const products = useMemo(() => accumulateSessionResources(events), [events]);
+  const [expanded, setExpanded] = useState(false);
 
   if (products.length === 0) return null;
 
+  const overflowCount = products.length - MAX_VISIBLE_CHIPS;
+  const hasOverflow = overflowCount > 0;
+  const visibleProducts =
+    hasOverflow && !expanded ? products.slice(0, MAX_VISIBLE_CHIPS) : products;
+
   return (
     <Box className="mb-3">
       <Box className="mx-auto" style={{ maxWidth: CHAT_CONTENT_MAX_WIDTH }}>
-        <Flex align="center" gap="2" wrap="wrap" className="px-3 pt-2">
-          <Text color="gray" className="whitespace-nowrap text-[12px]">
+        <Flex
+          align="center"
+          gap="1"
+          wrap="wrap"
+          className="overflow-hidden px-3 pt-2"
+        >
+          <Text color="gray" className="whitespace-nowrap text-[11px]">
             PostHog resources used
           </Text>
-          {products.map((product) => {
+          {visibleProducts.map((product) => {
             const Icon = PRODUCT_ICON[product.id] ?? SparkleIcon;
             const docUrl = PRODUCT_DOC_URL[product.id];
             return (
@@ -99,18 +117,32 @@ export function SessionResourcesBar({ events }: SessionResourcesBarProps) {
                 color="gray"
                 variant="soft"
                 className={
-                  docUrl ? "cursor-pointer hover:bg-gray-4" : undefined
+                  docUrl
+                    ? "max-w-full cursor-pointer text-[11px] hover:bg-gray-4"
+                    : "max-w-full text-[11px]"
                 }
                 onClick={
                   docUrl ? () => void openUrlInBrowser(docUrl) : undefined
                 }
                 title={docUrl ? `Open ${product.label} docs` : undefined}
               >
-                <Icon size={12} />
-                {product.label}
+                <Icon size={11} className="shrink-0" />
+                <span className="truncate">{product.label}</span>
               </Badge>
             );
           })}
+          {hasOverflow && (
+            <Badge
+              size="1"
+              color="gray"
+              variant="soft"
+              className="cursor-pointer text-[11px] hover:bg-gray-4"
+              onClick={() => setExpanded((prev) => !prev)}
+              title={expanded ? "Show fewer" : "Show all resources used"}
+            >
+              {expanded ? "Show less" : `+${overflowCount} more`}
+            </Badge>
+          )}
         </Flex>
       </Box>
     </Box>