diff --git a/.changeset/fix-stale-overlap-display.md b/.changeset/fix-stale-overlap-display.md
new file mode 100644
index 0000000000..da7d986127
--- /dev/null
+++ b/.changeset/fix-stale-overlap-display.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": patch
+---
+
+summary: Hide stale file-overlap blockers when a task is queued on an unfinished dependency.
+category: fix
+dev: Scheduler dependency transitions now retain only overlap blockers backed by an active overlapping lease.
diff --git a/packages/engine/src/__tests__/scheduler-workflow-cutover.test.ts b/packages/engine/src/__tests__/scheduler-workflow-cutover.test.ts
index d022fe65ef..275503cf80 100644
--- a/packages/engine/src/__tests__/scheduler-workflow-cutover.test.ts
+++ b/packages/engine/src/__tests__/scheduler-workflow-cutover.test.ts
@@ -415,6 +415,111 @@ describe("Scheduler workflow cutover", () => {
     expect(onBlocked).toHaveBeenCalledWith(expect.objectContaining({ id: "FN-002" }), ["FN-001"]);
   });
 
+  it("clears a stale overlap blocker while preserving an unfinished dependency", async () => {
+    const blocker = task({ id: "FN-001", column: "in-progress", paused: true, userPaused: true });
+    const dependent = task({
+      id: "FN-002",
+      dependencies: ["FN-001"],
+      status: "queued",
+      blockedBy: "FN-001",
+      overlapBlockedBy: "FN-001",
+    });
+    const store = storeWith([blocker, dependent], { groupOverlappingFiles: true });
+    vi.mocked(store.parseFileScopeFromPrompt).mockResolvedValue(["packages/engine/src/scheduler.ts"]);
+    const scheduler = new Scheduler(store);
+    (scheduler as unknown as { running: boolean }).running = true;
+
+    await scheduler.schedule();
+
+    expect(store.transitionQueuedEpisode).toHaveBeenCalledWith("FN-002", {
+      signature: "dependency:FN-001",
+      blockedBy: "FN-001",
+      overlapBlockedBy: null,
+      action: "queued — unmet dependencies: FN-001",
+    });
+  });
+
+  it("derives an active overlapping lease while the dependency remains unfinished", async () => {
+    const blocker = task({ id: "FN-001", column: "in-progress" });
+    const dependent = task({
+      id: "FN-002",
+      dependencies: ["FN-001"],
+      status: "queued",
+      blockedBy: "FN-001",
+    });
+    const store = storeWith([blocker, dependent], { groupOverlappingFiles: true });
+    vi.mocked(store.parseFileScopeFromPrompt).mockImplementation(async (id) => (
+      id === "FN-001" || id === "FN-002" ? ["packages/engine/src/scheduler.ts"] : []
+    ));
+    const scheduler = new Scheduler(store);
+    (scheduler as unknown as { running: boolean }).running = true;
+
+    await scheduler.schedule();
+
+    expect(store.transitionQueuedEpisode).toHaveBeenCalledWith("FN-002", {
+      signature: "dependency:FN-001",
+      blockedBy: "FN-001",
+      overlapBlockedBy: "FN-001",
+      action: "queued — unmet dependencies: FN-001",
+    });
+  });
+
+  it("clears an active but non-overlapping lease while preserving an unfinished dependency", async () => {
+    const blocker = task({ id: "FN-001", column: "in-progress" });
+    const dependent = task({
+      id: "FN-002",
+      dependencies: ["FN-001"],
+      status: "queued",
+      blockedBy: "FN-001",
+      overlapBlockedBy: "FN-001",
+    });
+    const store = storeWith([blocker, dependent], { groupOverlappingFiles: true });
+    vi.mocked(store.parseFileScopeFromPrompt).mockImplementation(async (id) => (
+      id === "FN-001" ? ["packages/core/src/store.ts"] : ["packages/engine/src/scheduler.ts"]
+    ));
+    const scheduler = new Scheduler(store);
+    (scheduler as unknown as { running: boolean }).running = true;
+
+    await scheduler.schedule();
+
+    expect(store.transitionQueuedEpisode).toHaveBeenCalledWith("FN-002", {
+      signature: "dependency:FN-001",
+      blockedBy: "FN-001",
+      overlapBlockedBy: null,
+      action: "queued — unmet dependencies: FN-001",
+    });
+  });
+
+  it("keeps scheduling after a dependency-blocked task file scope cannot be read", async () => {
+    const blocker = task({ id: "FN-001", column: "in-progress" });
+    const dependent = task({
+      id: "FN-002",
+      dependencies: ["FN-001"],
+      status: "queued",
+      blockedBy: "FN-001",
+      overlapBlockedBy: "FN-001",
+      priority: "urgent",
+    });
+    const ready = task({ id: "FN-003", priority: "normal" });
+    const store = storeWith([blocker, dependent, ready], { groupOverlappingFiles: true });
+    vi.mocked(store.parseFileScopeFromPrompt).mockImplementation(async (id) => {
+      if (id === "FN-002") throw new Error("scope read failed");
+      return id === "FN-001" ? ["packages/engine/src/scheduler.ts"] : ["packages/core/src/store.ts"];
+    });
+    const scheduler = new Scheduler(store);
+    (scheduler as unknown as { running: boolean }).running = true;
+
+    await scheduler.schedule();
+
+    expect(store.transitionQueuedEpisode).toHaveBeenCalledWith("FN-002", {
+      signature: "dependency:FN-001",
+      blockedBy: "FN-001",
+      overlapBlockedBy: null,
+      action: "queued — unmet dependencies: FN-001",
+    });
+    expect(store.moveTaskIf).toHaveBeenCalledWith("FN-003", "in-progress", expect.anything(), expect.anything());
+  });
+
   it("does not clear status or release work when maxConcurrent is full", async () => {
     const active = task({ id: "FN-001", column: "in-progress" });
     const ready = task({ id: "FN-002", status: "queued", worktree: "/tmp/project/.worktrees/fn-002" });
diff --git a/packages/engine/src/scheduler.ts b/packages/engine/src/scheduler.ts
index 2fa47575c1..b8956f944f 100644
--- a/packages/engine/src/scheduler.ts
+++ b/packages/engine/src/scheduler.ts
@@ -2406,10 +2406,27 @@ export class Scheduler {
           const unmetDeps = getUnmetSchedulingDependencies(task, tasks, schedulingDependencyOptions);
           if (unmetDeps.length > 0) {
             const normalizedUnmetDeps = [...new Set(unmetDeps)].sort();
+            /*
+            FNXC:WorkflowScheduling 2026-08-05-06:22:
+            Dependency blocking and file-scope blocking are independent display truths. Keep the unfinished dependency authoritative while re-deriving overlapBlockedBy from the same active-scope registry used for dispatch, so paused/re-scoped leases disappear and resumed or replacement leases reappear without waiting for the dependency to finish.
+            */
+            let activeOverlapBlockedBy: string | null = null;
+            if (activeScopes.size > 0) {
+              try {
+                const taskScope = await getFilteredFileScope(task.id);
+                if (taskScope.length > 0 && !isCoordinationOnlyTask(task, taskScope)) {
+                  activeOverlapBlockedBy = Array.from(activeScopes.entries())
+                    .sort(([aId], [bId]) => aId.localeCompare(bId))
+                    .find(([, activeScope]) => this.pathsOverlap(taskScope, activeScope))?.[0] ?? null;
+                }
+              } catch (error) {
+                schedulerLog.warn(`Failed to refresh file-scope overlap blocker for dependency-blocked task ${task.id}`, error);
+              }
+            }
             await this.transitionQueuedEpisode(task, {
               signature: `dependency:${normalizedUnmetDeps.join(",")}`,
               blockedBy: unmetDeps[0] ?? null,
-              overlapBlockedBy: task.overlapBlockedBy ?? null,
+              overlapBlockedBy: activeOverlapBlockedBy,
               action: `queued — unmet dependencies: ${unmetDeps.join(", ")}`,
             });
             this.options.onBlocked?.(task, unmetDeps);