diff --git a/.changeset/fn-8134-restart-after-update.md b/.changeset/fn-8134-restart-after-update.md
new file mode 100644
index 0000000000..dfa621ad44
--- /dev/null
+++ b/.changeset/fn-8134-restart-after-update.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": minor
+---
+
+summary: Add a one-click "Restart Fusion" button to the update banner after an in-app update.
+category: feature
+dev: Reuses POST /api/system/restart via requestSystemRestart and the SystemInfoResponse.restartSupported capability flag; button degrades to a disabled state with a manual-restart note when unsupervised.
diff --git a/docs/dashboard-guide.md b/docs/dashboard-guide.md
index b600bf96bc..08d4e52d25 100644
--- a/docs/dashboard-guide.md
+++ b/docs/dashboard-guide.md
@@ -6,7 +6,7 @@ The Fusion dashboard is the main control plane for tasks, agents, missions, sett
 
 ## Dashboard Updates
 
-When Fusion detects a newer `@runfusion/fusion` release, the Settings modal footer shows the available version with **Learn more** and **Update now** actions. **Update now** installs the latest global package with npm; after it succeeds, restart Fusion to apply the new version because the already-running dashboard server is unchanged until restart.
+When Fusion detects a newer `@runfusion/fusion` release, the Settings modal footer shows the available version with **Learn more** and **Update now** actions. **Update now** installs the latest global package with npm; after it succeeds, the dashboard update banner offers a one-click **Restart Fusion** action because the already-running dashboard server is unchanged until restart. When Fusion is unsupervised (for example, started with `--no-supervise`), that banner action is disabled and explains that Fusion must be restarted manually.
 
 ## Settings discovery
 
diff --git a/packages/dashboard/app/components/UpdateAvailableBanner.css b/packages/dashboard/app/components/UpdateAvailableBanner.css
index 2361d33207..a9ba64ddfe 100644
--- a/packages/dashboard/app/components/UpdateAvailableBanner.css
+++ b/packages/dashboard/app/components/UpdateAvailableBanner.css
@@ -53,7 +53,8 @@
   gap: var(--space-xs);
 }
 
-.update-available-banner__update-btn {
+.update-available-banner__update-btn,
+.update-available-banner__restart-btn {
   display: inline-flex;
   align-items: center;
   gap: var(--space-xs);
@@ -63,7 +64,8 @@
   color: var(--color-warning);
 }
 
-.update-available-banner__update-btn svg.spinning {
+.update-available-banner__update-btn svg.spinning,
+.update-available-banner__restart-btn svg.spinning {
   animation: update-available-banner-spin 1s linear infinite;
 }
 
@@ -113,6 +115,10 @@
     align-items: stretch;
   }
 
+  .update-available-banner__actions {
+    align-items: flex-start;
+  }
+
   .update-available-banner__dismiss {
     align-self: flex-end;
   }
diff --git a/packages/dashboard/app/components/UpdateAvailableBanner.tsx b/packages/dashboard/app/components/UpdateAvailableBanner.tsx
index 10d11f76d0..23dfdb0a9a 100644
--- a/packages/dashboard/app/components/UpdateAvailableBanner.tsx
+++ b/packages/dashboard/app/components/UpdateAvailableBanner.tsx
@@ -1,9 +1,9 @@
 import "./UpdateAvailableBanner.css";
-import { useState } from "react";
-import { RefreshCw, X } from "lucide-react";
+import { useEffect, useState } from "react";
+import { Power, RefreshCw, X } from "lucide-react";
 import { useTranslation, Trans } from "react-i18next";
 import { getErrorMessage } from "@fusion/core";
-import { installUpdate } from "../api";
+import { fetchSystemInfo, installUpdate, requestSystemRestart } from "../api";
 import type { UpdateInstallResponse } from "../api";
 
 interface UpdateAvailableBannerProps {
@@ -16,6 +16,27 @@ export function UpdateAvailableBanner({ latestVersion, currentVersion, onDismiss
   const { t } = useTranslation("app");
   const [installLoading, setInstallLoading] = useState(false);
   const [installResult, setInstallResult] = useState<UpdateInstallResponse | null>(null);
+  const [restartSupported, setRestartSupported] = useState<boolean | undefined>();
+  const [restartLoading, setRestartLoading] = useState(false);
+  const [restartScheduled, setRestartScheduled] = useState(false);
+  const [restartError, setRestartError] = useState<string | null>(null);
+
+  useEffect(() => {
+    let active = true;
+
+    void fetchSystemInfo()
+      .then((info) => {
+        if (active) setRestartSupported(info.restartSupported);
+      })
+      .catch(() => {
+        // Fail closed: an unavailable capability response must not offer a restart that cannot run.
+        if (active) setRestartSupported(false);
+      });
+
+    return () => {
+      active = false;
+    };
+  }, []);
 
   const handleInstallUpdate = async () => {
     setInstallLoading(true);
@@ -35,8 +56,33 @@ export function UpdateAvailableBanner({ latestVersion, currentVersion, onDismiss
     }
   };
 
+  /*
+  FNXC:UpdateBanner 2026-07-16-00:00:
+  Issue #1799 requires a successful in-app update to offer the supervised restart hook in-place.
+  Hosts without restart support keep the control visible but disabled with manual-restart guidance.
+  */
+  const handleRestart = async () => {
+    if (restartLoading || restartSupported !== true) return;
+
+    setRestartLoading(true);
+    setRestartError(null);
+    try {
+      const result = await requestSystemRestart("update-banner");
+      if (result.scheduled) {
+        setRestartScheduled(true);
+      } else {
+        setRestartError(t("updateBanner.restartFailed", "Restart could not be scheduled. Try restarting Fusion manually."));
+      }
+    } catch (error) {
+      setRestartError(getErrorMessage(error) || t("updateBanner.restartFailed", "Restart could not be scheduled. Try restarting Fusion manually."));
+    } finally {
+      setRestartLoading(false);
+    }
+  };
+
   const installSucceeded = installResult?.updated === true;
   const installError = installResult?.error;
+  const restartUnavailable = restartSupported !== true;
 
   return (
     <div className="update-available-banner" role="status" aria-live="polite">
@@ -63,11 +109,49 @@ export function UpdateAvailableBanner({ latestVersion, currentVersion, onDismiss
         </p>
         <div className="update-available-banner__actions">
           {installSucceeded ? (
-            <span className="update-available-banner__install-status update-available-banner__install-status--success" aria-live="polite">
-              {t("updateBanner.updateSuccess", "Updated to v{{version}} — restart Fusion to apply", {
-                version: installResult.latestVersion ?? latestVersion,
-              })}
-            </span>
+            <>
+              <span className="update-available-banner__install-status update-available-banner__install-status--success" aria-live="polite">
+                {t("updateBanner.updateSuccess", "Updated to v{{version}} — restart Fusion to apply", {
+                  version: installResult.latestVersion ?? latestVersion,
+                })}
+              </span>
+              {restartScheduled ? (
+                <span className="update-available-banner__install-status" aria-live="polite">
+                  {t("updateBanner.restarting", "Restarting… Your connection will close shortly.")}
+                </span>
+              ) : (
+                <button
+                  type="button"
+                  className="btn btn-sm update-available-banner__restart-btn"
+                  onClick={() => {
+                    void handleRestart();
+                  }}
+                  disabled={restartUnavailable || restartLoading}
+                >
+                  {restartLoading ? (
+                    <>
+                      <RefreshCw size={12} className="spinning" aria-hidden="true" />
+                      {t("updateBanner.restarting", "Restarting…")}
+                    </>
+                  ) : (
+                    <>
+                      <Power size={12} aria-hidden="true" />
+                      {t("updateBanner.restartNow", "Restart Fusion")}
+                    </>
+                  )}
+                </button>
+              )}
+              {restartUnavailable && (
+                <span className="update-available-banner__install-status" aria-live="polite">
+                  {t("updateBanner.restartUnavailable", "Needs a supervising parent — restart Fusion manually without --no-supervise.")}
+                </span>
+              )}
+              {restartError && (
+                <span className="update-available-banner__install-status update-available-banner__install-status--error" aria-live="polite">
+                  {restartError}
+                </span>
+              )}
+            </>
           ) : (
             <button
               type="button"
diff --git a/packages/dashboard/app/components/__tests__/UpdateAvailableBanner.test.tsx b/packages/dashboard/app/components/__tests__/UpdateAvailableBanner.test.tsx
index 9d75cc5810..3afe2e0d80 100644
--- a/packages/dashboard/app/components/__tests__/UpdateAvailableBanner.test.tsx
+++ b/packages/dashboard/app/components/__tests__/UpdateAvailableBanner.test.tsx
@@ -3,10 +3,14 @@ import { fireEvent, render, screen, waitFor } from "@testing-library/react";
 import { useState } from "react";
 import { UpdateAvailableBanner } from "../UpdateAvailableBanner";
 
+const mockFetchSystemInfo = vi.hoisted(() => vi.fn());
 const mockInstallUpdate = vi.hoisted(() => vi.fn());
+const mockRequestSystemRestart = vi.hoisted(() => vi.fn());
 
 vi.mock("../../api", () => ({
+  fetchSystemInfo: (...args: unknown[]) => mockFetchSystemInfo(...args),
   installUpdate: (...args: unknown[]) => mockInstallUpdate(...args),
+  requestSystemRestart: (...args: unknown[]) => mockRequestSystemRestart(...args),
 }));
 
 vi.mock("lucide-react", async (importOriginal) => {
@@ -17,15 +21,29 @@ vi.mock("lucide-react", async (importOriginal) => {
   };
 });
 
+const successfulInstall = { currentVersion: "0.6.0", latestVersion: "0.7.0", updated: true };
+
+function renderBanner() {
+  return render(<UpdateAvailableBanner latestVersion="0.7.0" currentVersion="0.6.0" onDismiss={vi.fn()} />);
+}
+
+async function completeInstall() {
+  fireEvent.click(screen.getByRole("button", { name: "Update now" }));
+  await screen.findByText("Updated to v0.7.0 — restart Fusion to apply");
+}
+
 describe("UpdateAvailableBanner", () => {
   beforeEach(() => {
+    mockFetchSystemInfo.mockReset();
     mockInstallUpdate.mockReset();
-    mockInstallUpdate.mockResolvedValue({ currentVersion: "0.6.0", latestVersion: "0.7.0", updated: true });
+    mockRequestSystemRestart.mockReset();
+    mockFetchSystemInfo.mockResolvedValue({ restartSupported: true });
+    mockInstallUpdate.mockResolvedValue(successfulInstall);
+    mockRequestSystemRestart.mockResolvedValue({ scheduled: true });
   });
+
   it("renders version information with release notes and learn more links", () => {
-    render(
-      <UpdateAvailableBanner latestVersion="0.7.0" currentVersion="0.6.0" onDismiss={vi.fn()} />,
-    );
+    renderBanner();
 
     expect(screen.getByText(/Update available: v0.7.0 \(current: v0.6.0\)/)).toBeInTheDocument();
     expect(screen.getByText("fn update")).toBeInTheDocument();
@@ -40,9 +58,7 @@ describe("UpdateAvailableBanner", () => {
   it("dismiss button calls onDismiss", () => {
     const onDismiss = vi.fn();
 
-    render(
-      <UpdateAvailableBanner latestVersion="0.7.0" currentVersion="0.6.0" onDismiss={onDismiss} />,
-    );
+    render(<UpdateAvailableBanner latestVersion="0.7.0" currentVersion="0.6.0" onDismiss={onDismiss} />);
 
     fireEvent.click(screen.getByRole("button", { name: "Dismiss update notice" }));
     expect(onDismiss).toHaveBeenCalledTimes(1);
@@ -68,25 +84,95 @@ describe("UpdateAvailableBanner", () => {
     expect(screen.queryByRole("status")).toBeNull();
   });
 
-  it("disables update-now while installing and then shows restart hint", async () => {
-    let resolveInstall: ((result: { currentVersion: string; latestVersion: string; updated: boolean }) => void) | undefined;
+  it("disables update-now while installing and then renders an enabled restart button", async () => {
+    let resolveInstall: ((result: typeof successfulInstall) => void) | undefined;
     mockInstallUpdate.mockReturnValueOnce(new Promise((resolve) => {
       resolveInstall = resolve;
     }));
 
-    render(<UpdateAvailableBanner latestVersion="0.7.0" currentVersion="0.6.0" onDismiss={vi.fn()} />);
+    renderBanner();
 
     fireEvent.click(screen.getByRole("button", { name: "Update now" }));
     expect(screen.getByRole("button", { name: "Updating…" })).toBeDisabled();
     expect(screen.getByTestId("icon-refresh")).toHaveClass("spinning");
 
-    resolveInstall?.({ currentVersion: "0.6.0", latestVersion: "0.7.0", updated: true });
+    resolveInstall?.(successfulInstall);
 
-    expect(await screen.findByText("Updated to v0.7.0 — restart Fusion to apply")).toBeInTheDocument();
+    await screen.findByText("Updated to v0.7.0 — restart Fusion to apply");
+    expect(screen.getByRole("button", { name: "Restart Fusion" })).toBeEnabled();
     expect(screen.queryByRole("button", { name: "Update now" })).not.toBeInTheDocument();
   });
 
-  it("shows install errors inline without removing retry button", async () => {
+  it("restarts a supervised host with the update-banner reason", async () => {
+    renderBanner();
+    await completeInstall();
+
+    fireEvent.click(screen.getByRole("button", { name: "Restart Fusion" }));
+
+    await waitFor(() => expect(mockRequestSystemRestart).toHaveBeenCalledWith("update-banner"));
+    expect(await screen.findByText("Restarting… Your connection will close shortly.")).toBeInTheDocument();
+  });
+
+  it("renders the restart button disabled with manual guidance when unsupported", async () => {
+    mockFetchSystemInfo.mockResolvedValueOnce({ restartSupported: false });
+    renderBanner();
+    await completeInstall();
+
+    expect(screen.getByRole("button", { name: "Restart Fusion" })).toBeDisabled();
+    expect(screen.getByText(/Needs a supervising parent/)).toBeInTheDocument();
+  });
+
+  it("keeps restart disabled while system info is loading", async () => {
+    mockFetchSystemInfo.mockReturnValueOnce(new Promise(() => {}));
+    renderBanner();
+    await completeInstall();
+
+    expect(screen.getByRole("button", { name: "Restart Fusion" })).toBeDisabled();
+  });
+
+  it("fails closed with manual guidance when system info cannot be loaded", async () => {
+    mockFetchSystemInfo.mockRejectedValueOnce(new Error("network unavailable"));
+    renderBanner();
+    await completeInstall();
+
+    await waitFor(() => expect(screen.getByRole("button", { name: "Restart Fusion" })).toBeDisabled());
+    expect(screen.getByText(/Needs a supervising parent/)).toBeInTheDocument();
+  });
+
+  it("shows a disabled spinning restart action while a restart request is in flight", async () => {
+    mockRequestSystemRestart.mockReturnValueOnce(new Promise(() => {}));
+    renderBanner();
+    await completeInstall();
+
+    fireEvent.click(screen.getByRole("button", { name: "Restart Fusion" }));
+
+    expect(screen.getByRole("button", { name: /Restarting/ })).toBeDisabled();
+    expect(screen.getByTestId("icon-refresh")).toHaveClass("spinning");
+  });
+
+  it("shows a re-clickable inline error when restart rejects", async () => {
+    mockRequestSystemRestart.mockRejectedValueOnce(new Error("restart conflict"));
+    renderBanner();
+    await completeInstall();
+
+    fireEvent.click(screen.getByRole("button", { name: "Restart Fusion" }));
+
+    expect(await screen.findByText("restart conflict")).toBeInTheDocument();
+    expect(screen.getByRole("button", { name: "Restart Fusion" })).toBeEnabled();
+  });
+
+  it("shows a re-clickable inline error when restart is not scheduled", async () => {
+    mockRequestSystemRestart.mockResolvedValueOnce({ scheduled: false });
+    renderBanner();
+    await completeInstall();
+
+    fireEvent.click(screen.getByRole("button", { name: "Restart Fusion" }));
+
+    expect(await screen.findByText("Restart could not be scheduled. Try restarting Fusion manually.")).toBeInTheDocument();
+    expect(screen.getByRole("button", { name: "Restart Fusion" })).toBeEnabled();
+  });
+
+  it("shows install errors inline without rendering a restart button or removing retry", async () => {
     mockInstallUpdate.mockResolvedValueOnce({
       currentVersion: "0.6.0",
       latestVersion: "0.7.0",
@@ -94,12 +180,35 @@ describe("UpdateAvailableBanner", () => {
       error: "permission denied",
     });
 
-    render(<UpdateAvailableBanner latestVersion="0.7.0" currentVersion="0.6.0" onDismiss={vi.fn()} />);
+    renderBanner();
 
     fireEvent.click(screen.getByRole("button", { name: "Update now" }));
 
     await waitFor(() => expect(mockInstallUpdate).toHaveBeenCalledTimes(1));
     expect(await screen.findByText("Update failed: permission denied")).toBeInTheDocument();
-    expect(screen.getByRole("button", { name: "Update now" })).not.toBeDisabled();
+    expect(screen.getByRole("button", { name: "Update now" })).toBeEnabled();
+    expect(screen.queryByRole("button", { name: "Restart Fusion" })).not.toBeInTheDocument();
+  });
+
+  it.each([
+    ["supported", true],
+    ["unsupported", false],
+  ])("keeps the mobile action row and %s restart control in the document", async (_state, restartSupported) => {
+    const previousWidth = window.innerWidth;
+    Object.defineProperty(window, "innerWidth", { configurable: true, value: 480 });
+    mockFetchSystemInfo.mockResolvedValueOnce({ restartSupported });
+
+    renderBanner();
+    await completeInstall();
+
+    const actions = document.querySelector(".update-available-banner__actions");
+    const restartButton = screen.getByRole("button", { name: "Restart Fusion" });
+    expect(actions).toBeInTheDocument();
+    expect(actions).toContainElement(restartButton);
+    expect(restartButton).toBeInTheDocument();
+    expect(restartButton).toHaveProperty("disabled", !restartSupported);
+    if (!restartSupported) expect(screen.getByText(/Needs a supervising parent/)).toBeInTheDocument();
+
+    Object.defineProperty(window, "innerWidth", { configurable: true, value: previousWidth });
   });
 });
diff --git a/packages/i18n/locales/en/app.json b/packages/i18n/locales/en/app.json
index f663156e4e..b650582490 100644
--- a/packages/i18n/locales/en/app.json
+++ b/packages/i18n/locales/en/app.json
@@ -8487,6 +8487,10 @@
     "learnMore": "Learn more",
     "message": "Update available: v{{latestVersion}} (current: v{{currentVersion}}). Run fn update for an installed CLI, or pull this source checkout.",
     "releaseNotes": "Release notes",
+    "restartFailed": "Restart could not be scheduled. Try restarting Fusion manually.",
+    "restartNow": "Restart Fusion",
+    "restartUnavailable": "Needs a supervising parent — restart Fusion manually without --no-supervise.",
+    "restarting": "Restarting… Your connection will close shortly.",
     "updateFailed": "Update failed",
     "updateFailedWithMessage": "Update failed: {{message}}",
     "updateNow": "Update now",