diff --git a/.changeset/fn-8449-planning-history-thinking.md b/.changeset/fn-8449-planning-history-thinking.md
new file mode 100644
index 0000000000..338fdfbd6d
--- /dev/null
+++ b/.changeset/fn-8449-planning-history-thinking.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": patch
+---
+
+summary: Planning Mode history now collapses AI thinking by default.
+category: fix
+dev: PlanningModeModal history panel omits defaultShowThinking so ConversationHistory keeps blocks collapsed until expanded (FN-8449).
diff --git a/packages/dashboard/app/components/PlanningModeModal.tsx b/packages/dashboard/app/components/PlanningModeModal.tsx
index 1025f7a9bb..891cf33ece 100644
--- a/packages/dashboard/app/components/PlanningModeModal.tsx
+++ b/packages/dashboard/app/components/PlanningModeModal.tsx
@@ -2804,7 +2804,8 @@ export function PlanningModeModal({ isOpen, onClose, onTaskCreated, onTasksCreat
                 </div>
                 <div className="planning-history-scroll">
                   {historyPanelEntries.length > 0 ? (
-                    <ConversationHistory entries={historyPanelEntries} defaultShowThinking />
+                    // FNXC:PlanningHistory 2026-07-20-23:24: FN-8449 keeps history thinking collapsed so operators can scan Q&A first; the existing toggle remains available to expand it, matching the FN-7974 chat default.
+                    <ConversationHistory entries={historyPanelEntries} />
                   ) : (
                     <div className="planning-history-empty">
                       <History size={24} />
diff --git a/packages/dashboard/app/components/__tests__/PlanningModeModal.planning-flow.test.tsx b/packages/dashboard/app/components/__tests__/PlanningModeModal.planning-flow.test.tsx
index 542863a3e2..3f0be25412 100644
--- a/packages/dashboard/app/components/__tests__/PlanningModeModal.planning-flow.test.tsx
+++ b/packages/dashboard/app/components/__tests__/PlanningModeModal.planning-flow.test.tsx
@@ -110,7 +110,7 @@ describe("PlanningModeModal sequential flow", () => {
     expect(mockConnectPlanningStream).not.toHaveBeenCalled();
   });
 
-  it("opens question, answer, and expanded AI reasoning history beside Sessions", async () => {
+  it("opens question, answer, and collapsed AI reasoning history beside Sessions", async () => {
     mockFetchAiSession.mockResolvedValue({
       ...base,
       status: "awaiting_input",
@@ -138,8 +138,14 @@ describe("PlanningModeModal sequential flow", () => {
     expect(screen.getByRole("region", { name: "Question and answer history" })).toBeInTheDocument();
     expect(screen.getByText("Which outcome matters most?")).toBeInTheDocument();
     expect(screen.getByText("Secure defaults")).toBeInTheDocument();
-    expect(screen.getByText("I updated the plan to prioritize secure defaults.")).toBeInTheDocument();
+
+    const thinkingToggle = screen.getByRole("button", { name: "Show AI thinking" });
+    expect(thinkingToggle).toHaveAttribute("aria-expanded", "false");
+    expect(screen.queryByText("I updated the plan to prioritize secure defaults.")).toBeNull();
+
+    fireEvent.click(thinkingToggle);
     expect(screen.getByRole("button", { name: "Hide AI thinking" })).toHaveAttribute("aria-expanded", "true");
+    expect(screen.getByText("I updated the plan to prioritize secure defaults.")).toBeInTheDocument();
 
     fireEvent.click(screen.getByRole("button", { name: "Close history" }));
     expect(screen.queryByRole("region", { name: "Question and answer history" })).toBeNull();