diff --git a/docs/ROADMAP.md b/docs/ROADMAP.md
index 42c9825..673cb9b 100644
--- a/docs/ROADMAP.md
+++ b/docs/ROADMAP.md
@@ -29,7 +29,7 @@ It assumes:
 - [x] Monorepo foundation scaffolded with root workspace config, shared runtime, shared product identity, local package linking, and verification scripts
 - [x] Backend migrated into `backend/` and passing typecheck, build, test, and backend verification gates
 - [x] Web migrated into `web/` with shared runtime, shared kill-switch gate, shared telemetry bootstrap, and normalized backend URL resolution
-- [x] Mobile migrated into `mobile/` with product identity, shared runtime bootstrap, launch-time kill-switch gate, transitional Supabase auth, live backend polling plus websocket-backed updates, startup/error telemetry capture, and secure session storage with invalidation handling
+- [x] Mobile migrated into `mobile/` with product identity, shared runtime bootstrap, launch-time kill-switch gate, transitional Supabase auth, live backend polling plus websocket-backed updates, startup/error telemetry capture, secure session storage with invalidation handling, and explicit degraded/offline status surfacing
 - [-] DRY cleanup completed for runtime/config/bootstrap concerns and shared Supabase bootstrap, but not yet for all auth/session internals
 - [!] Full common-platform auth replacement remains a follow-up for web and mobile; current implementation uses transitional Supabase-backed auth to stay compatible with the backend's current JWT boundary
 
@@ -313,7 +313,7 @@ Build mobile as a real ecosystem surface, not a mock UI shell.
 - [x] Define mobile action policy for monitor-first versus control-first flows
 - [x] Define alert and incident UX
 - [-] Define operator-safe interventions
-- [-] Define offline and degraded-state behavior
+- [x] Define offline and degraded-state behavior
 
 ### Mobile v1 Scope
 
@@ -444,7 +444,7 @@ Validate that the new monorepo is safer and more coherent than the legacy setup
 - [x] Define status polling/live update strategy
 - [ ] Define alert/incident UX
 - [ ] Define operator-safe interventions
-- [ ] Define offline and degraded-state behavior
+- [x] Define offline and degraded-state behavior
 
 ## 10. Sequencing Recommendations
 
diff --git a/mobile/app/(tabs)/settings.tsx b/mobile/app/(tabs)/settings.tsx
index b89a836..337be01 100644
--- a/mobile/app/(tabs)/settings.tsx
+++ b/mobile/app/(tabs)/settings.tsx
@@ -12,7 +12,7 @@ import { useMobileAuth } from '@/providers/MobileAuthProvider';
 
 export default function SettingsScreen() {
   const insets = useSafeAreaInsets();
-  const { botState, portfolio, pauseTrading, resumeTrading } = useTradingData();
+  const { botState, portfolio, pauseTrading, resumeTrading, connectionState, error, lastUpdatedAt } = useTradingData();
   const { profile, signOut } = useMobileAuth();
   const executionModeIndex = botState?.settings.executionMode === 'Live' ? 2 : botState?.settings.executionMode === 'Paper' ? 1 : 0;
   const [maxOpenTrades, setMaxOpenTrades] = useState(botState?.settings.maxOpenTrades || 3);
@@ -25,6 +25,17 @@ export default function SettingsScreen() {
   const [oledBlack, setOledBlack] = useState(false);
   const tradingMode = botState?.health?.tradingControl?.mode ?? 'RUNNING';
   const isAdmin = profile?.role === 'admin';
+  const brokerStatusText =
+    connectionState === 'live' ? 'Connected' : connectionState === 'degraded' ? 'Degraded' : 'Offline';
+  const brokerHint = error
+    ? error
+    : connectionState === 'live'
+      ? tradingMode === 'PAUSED'
+        ? 'Trading is currently paused.'
+        : 'Broker state is sourced from the live backend.'
+      : lastUpdatedAt
+        ? `Last backend sync ${Math.max(Math.round((Date.now() - lastUpdatedAt) / 60000), 0)}m ago.`
+        : 'Waiting for backend connectivity.';
 
   const modeColors = [Colors.text.secondary, Colors.accent.blue, Colors.accent.orange];
 
@@ -123,11 +134,28 @@ export default function SettingsScreen() {
             <View style={styles.brokerRow}>
               <Text style={styles.brokerName}>Alpaca</Text>
               <View style={styles.connectedBadge}>
-                <Check size={12} color={Colors.accent.green} />
-                <Text style={styles.connectedText}>Connected</Text>
+                <Check
+                  size={12}
+                  color={
+                    connectionState === 'live'
+                      ? Colors.accent.green
+                      : connectionState === 'degraded'
+                        ? Colors.accent.amber
+                        : Colors.accent.red
+                  }
+                />
+                <Text
+                  style={[
+                    styles.connectedText,
+                    connectionState === 'degraded' && styles.degradedText,
+                    connectionState === 'offline' && styles.offlineText,
+                  ]}
+                >
+                  {brokerStatusText}
+                </Text>
               </View>
             </View>
-            <Text style={styles.apiKeyHint}>{tradingMode === 'PAUSED' ? 'Trading is currently paused.' : 'Broker state is sourced from the live backend.'}</Text>
+            <Text style={styles.apiKeyHint}>{brokerHint}</Text>
           </View>
         </AnimatedCard>
 
@@ -450,6 +478,12 @@ const styles = StyleSheet.create({
     fontSize: FontSize.bodySmall,
     color: Colors.accent.green,
   },
+  degradedText: {
+    color: Colors.accent.amber,
+  },
+  offlineText: {
+    color: Colors.accent.red,
+  },
   apiKeyHint: {
     fontFamily: Fonts.mono.regular,
     fontSize: FontSize.bodySmall,
diff --git a/mobile/components/dashboard/StatusBanner.tsx b/mobile/components/dashboard/StatusBanner.tsx
index 56f36d8..b22e372 100644
--- a/mobile/components/dashboard/StatusBanner.tsx
+++ b/mobile/components/dashboard/StatusBanner.tsx
@@ -5,26 +5,43 @@ import PulsingDot from '@/components/PulsingDot';
 import { useTradingData } from '@/providers/TradingDataProvider';
 
 export default function StatusBanner() {
-  const { botState, connected } = useTradingData();
+  const { botState, connectionState, error, lastUpdatedAt } = useTradingData();
   const controlMode = botState?.health?.tradingControl?.mode ?? 'RUNNING';
   const executionMode = botState?.settings.executionMode || 'Paper';
   const uptimeSeconds = botState?.uptime || 0;
   const uptimeHours = Math.floor(uptimeSeconds / 3600);
   const uptimeMinutes = Math.floor((uptimeSeconds % 3600) / 60);
   const isPaused = controlMode === 'PAUSED';
+  const statusText =
+    connectionState === 'offline' ? 'OFFLINE' : connectionState === 'degraded' ? 'DEGRADED' : controlMode;
+  const statusDetail = error
+    ? error
+    : lastUpdatedAt
+      ? `Synced ${Math.max(Math.round((Date.now() - lastUpdatedAt) / 60000), 0)}m ago`
+      : 'Awaiting sync';
 
   return (
     <View style={styles.container}>
-      <View style={[styles.badge, isPaused && styles.pausedBadge]}>
-        {!isPaused ? <PulsingDot size={6} /> : null}
+      <View
+        style={[
+          styles.badge,
+          isPaused && connectionState === 'live' && styles.pausedBadge,
+          connectionState === 'degraded' && styles.degradedBadge,
+          connectionState === 'offline' && styles.offlineBadge,
+        ]}
+      >
+        {connectionState === 'live' && !isPaused ? <PulsingDot size={6} /> : null}
         <Text style={[styles.runningText, isPaused && styles.pausedText]}>
-          {connected ? controlMode : 'OFFLINE'}
+          {statusText}
         </Text>
       </View>
       <View style={[styles.badge, styles.paperBadge]}>
         <Text style={styles.paperText}>{executionMode.toUpperCase()}</Text>
       </View>
-      <Text style={styles.uptime}>{uptimeHours}h {uptimeMinutes}m</Text>
+      <View style={styles.metaColumn}>
+        <Text style={styles.detailText} numberOfLines={1}>{statusDetail}</Text>
+        <Text style={styles.uptime}>{uptimeHours}h {uptimeMinutes}m</Text>
+      </View>
     </View>
   );
 }
@@ -68,13 +85,30 @@ const styles = StyleSheet.create({
   pausedBadge: {
     backgroundColor: 'rgba(255,149,0,0.15)',
   },
+  degradedBadge: {
+    backgroundColor: 'rgba(255,184,0,0.15)',
+  },
+  offlineBadge: {
+    backgroundColor: 'rgba(255,71,87,0.15)',
+  },
   pausedText: {
     color: Colors.accent.amber,
   },
+  metaColumn: {
+    marginLeft: 'auto',
+    alignItems: 'flex-end',
+    gap: 2,
+    minWidth: 110,
+  },
+  detailText: {
+    fontFamily: Fonts.inter.medium,
+    fontSize: FontSize.micro,
+    color: Colors.text.secondary,
+    maxWidth: 140,
+  },
   uptime: {
     fontFamily: Fonts.mono.regular,
     fontSize: FontSize.bodySmall,
     color: Colors.text.secondary,
-    marginLeft: 'auto',
   },
 });
diff --git a/mobile/providers/TradingDataProvider.tsx b/mobile/providers/TradingDataProvider.tsx
index d8c9ac3..50081cc 100644
--- a/mobile/providers/TradingDataProvider.tsx
+++ b/mobile/providers/TradingDataProvider.tsx
@@ -115,6 +115,8 @@ interface TradingDataContextValue {
   loading: boolean;
   error: string | null;
   connected: boolean;
+  connectionState: 'live' | 'degraded' | 'offline';
+  lastUpdatedAt: number | null;
   refresh: () => Promise<void>;
   pauseTrading: (reason?: string) => Promise<{ error?: string }>;
   resumeTrading: (reason?: string) => Promise<{ error?: string }>;
@@ -142,6 +144,12 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
   const [loading, setLoading] = useState(true);
   const [error, setError] = useState<string | null>(null);
   const [connected, setConnected] = useState(false);
+  const [lastUpdatedAt, setLastUpdatedAt] = useState<number | null>(null);
+  const [statusClock, setStatusClock] = useState(() => Date.now());
+
+  const markStateSynced = useCallback(() => {
+    setLastUpdatedAt(Date.now());
+  }, []);
 
   const fetchState = useCallback(async () => {
     if (!accessToken || !user) {
@@ -171,6 +179,7 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
       setBotState(data);
       setConnected(true);
       setError(null);
+      markStateSynced();
     } catch (fetchError) {
       setConnected(false);
       setError(fetchError instanceof Error ? fetchError.message : 'Failed to load trading state');
@@ -178,7 +187,7 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
     } finally {
       setLoading(false);
     }
-  }, [accessToken, user, invalidateSession]);
+  }, [accessToken, user, invalidateSession, markStateSynced]);
 
   useEffect(() => {
     void fetchState();
@@ -191,6 +200,14 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
     return () => clearInterval(interval);
   }, [accessToken, user, fetchState]);
 
+  useEffect(() => {
+    const interval = setInterval(() => {
+      setStatusClock(Date.now());
+    }, 30000);
+
+    return () => clearInterval(interval);
+  }, []);
+
   useEffect(() => {
     if (!accessToken || !user) {
       return;
@@ -232,13 +249,16 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
 
     socket.on('state', (nextState: BotState) => {
       mergePartialState(nextState);
+      markStateSynced();
     });
 
     socket.on('health_update', (health: HealthSnapshot) => {
+      markStateSynced();
       setBotState((prev) => (prev ? { ...prev, health } : prev));
     });
 
     socket.on('symbol_update', ({ symbol, data }: { symbol: string; data: BotState['symbols'][string] }) => {
+      markStateSynced();
       setBotState((prev) => {
         if (!prev) return prev;
         return {
@@ -252,6 +272,7 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
     });
 
     socket.on('new_alert', (alert: BotState['alerts'][number]) => {
+      markStateSynced();
       setBotState((prev) => {
         if (!prev) return prev;
         return {
@@ -262,14 +283,17 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
     });
 
     socket.on('positions_update', (positions: BotState['positions']) => {
+      markStateSynced();
       setBotState((prev) => (prev ? { ...prev, positions } : prev));
     });
 
     socket.on('orders_update', (orders: BotState['orders']) => {
+      markStateSynced();
       setBotState((prev) => (prev ? { ...prev, orders } : prev));
     });
 
     socket.on('history_update', (trade: BotState['history'][number]) => {
+      markStateSynced();
       setBotState((prev) => {
         if (!prev) return prev;
         return {
@@ -280,6 +304,7 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
     });
 
     socket.on('settings_update', (settings: BotState['settings']) => {
+      markStateSynced();
       setBotState((prev) => (prev ? { ...prev, settings } : prev));
     });
 
@@ -298,7 +323,7 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
     return () => {
       socket?.close();
     };
-  }, [accessToken, user, fetchState]);
+  }, [accessToken, user, fetchState, invalidateSession, markStateSynced]);
 
   const postTradingAction = useCallback(
     async (path: '/internal/trading/pause' | '/internal/trading/resume', reason?: string) => {
@@ -378,19 +403,38 @@ export function TradingDataProvider({ children }: { children: ReactNode }) {
     [botState]
   );
 
+  const connectionState = useMemo<'live' | 'degraded' | 'offline'>(() => {
+    if (!connected && !botState) {
+      return 'offline';
+    }
+
+    const staleMs = lastUpdatedAt ? statusClock - lastUpdatedAt : Number.POSITIVE_INFINITY;
+    if (connected && !error && staleMs < 90_000) {
+      return 'live';
+    }
+
+    if (botState || connected) {
+      return 'degraded';
+    }
+
+    return 'offline';
+  }, [connected, botState, error, lastUpdatedAt, statusClock]);
+
   const value = useMemo<TradingDataContextValue>(
     () => ({
       botState,
       loading,
       error,
       connected,
+      connectionState,
+      lastUpdatedAt,
       refresh: fetchState,
       pauseTrading: (reason?: string) => postTradingAction('/internal/trading/pause', reason),
       resumeTrading: (reason?: string) => postTradingAction('/internal/trading/resume', reason),
       portfolio,
       marketTicker,
     }),
-    [botState, loading, error, connected, fetchState, postTradingAction, portfolio, marketTicker]
+    [botState, loading, error, connected, connectionState, lastUpdatedAt, fetchState, postTradingAction, portfolio, marketTicker]
   );
 
   return <TradingDataContext.Provider value={value}>{children}</TradingDataContext.Provider>;