diff --git a/apps/app-frontend/src/components/ui/AppActionBar.vue b/apps/app-frontend/src/components/ui/AppActionBar.vue
index 11c172b71e..6790167f3d 100644
--- a/apps/app-frontend/src/components/ui/AppActionBar.vue
+++ b/apps/app-frontend/src/components/ui/AppActionBar.vue
@@ -1,15 +1,16 @@
 <template>
 	<div class="flex gap-2 items-center">
-		<IconButton
-			v-if="hasActiveLoadingBars && !hasVisibleActiveDownloadToasts"
-			v-tooltip="formatMessage(messages.viewActiveDownloads)"
-			type="quiet"
-			color="brand"
-			:label="formatMessage(messages.viewActiveDownloads)"
-			@click="openDownloadToast()"
-		>
-			<DownloadIcon />
-		</IconButton>
+		<div v-if="downloadState.total > 0 || hasActiveLoadingBars" class="relative">
+			<IconButton
+				v-tooltip="downloadToggleLabel"
+				:color="downloadState.hidden > 0 ? 'brand' : undefined"
+				type="quiet"
+				:label="downloadToggleLabel"
+				@click="toggleDownloadNotifications"
+			>
+				<DownloadIcon />
+			</IconButton>
+		</div>
 		<div v-if="offline" class="flex items-center gap-1">
 			<UnplugIcon class="text-secondary" />
 			<span class="text-sm text-contrast"> {{ formatMessage(messages.offline) }} </span>
@@ -218,8 +219,35 @@ const messages = defineMessages({
 		id: 'app.action-bar.view-active-downloads',
 		defaultMessage: 'View active downloads',
 	},
+	hideDownloads: {
+		id: 'app.action-bar.hide-downloads',
+		defaultMessage: 'Hide active downloads',
+	},
+	showDownloads: {
+		id: 'app.action-bar.show-downloads',
+		defaultMessage: 'Show active downloads',
+	},
 })
 
+const downloadState = computed(() => popupNotificationManager.getDownloadState())
+const downloadToggleLabel = computed(() =>
+	formatMessage(
+		downloadState.value.hidden > 0
+			? messages.showDownloads
+			: downloadState.value.total > 0
+				? messages.hideDownloads
+				: messages.viewActiveDownloads,
+	),
+)
+
+function toggleDownloadNotifications(): void {
+	if (downloadState.value.total > 0) {
+		popupNotificationManager.toggleDownloadNotifications()
+	} else if (hasActiveLoadingBars.value) {
+		openDownloadToast()
+	}
+}
+
 const currentProcesses = ref<RunningProcess[]>([])
 const selectedProcess = ref<RunningProcess | undefined>()
 
@@ -296,6 +324,7 @@ function goToTerminal(instanceId?: string) {
 const currentLoadingBars = ref<LoadingBar[]>([])
 const currentLoadingBarIconUrls = ref<Record<string, string | null>>({})
 const notificationId = ref<string | number | null>(null)
+const terminalNotificationIds = new Map<string, string | number>()
 const dismissed = ref(false)
 
 function getLoadingBarKey(loadingBar: LoadingBar): string {
@@ -341,6 +370,44 @@ function removeNotification(): void {
 	notificationId.value = null
 }
 
+function syncTerminalNotifications(): void {
+	const terminalNotifications = installJobNotifications.terminalNotifications.value
+	const currentJobIds = new Set(terminalNotifications.map((notification) => notification.id))
+
+	for (const terminal of terminalNotifications) {
+		const popupId = terminalNotificationIds.get(terminal.id)
+		let notification = popupId
+			? popupNotificationManager.getNotifications().find((candidate) => candidate.id === popupId)
+			: undefined
+
+		if (!notification) {
+			notification = popupNotificationManager.addPopupNotification({
+				title: terminal.title,
+				text: terminal.text,
+				type: terminal.type,
+				buttons: terminal.buttons,
+				onDismiss: terminal.onDismiss,
+				autoCloseMs: null,
+			})
+			terminalNotificationIds.set(terminal.id, notification.id)
+			continue
+		}
+
+		notification.title = terminal.title
+		notification.text = terminal.text
+		notification.type = terminal.type
+		notification.buttons = terminal.buttons
+		notification.onDismiss = terminal.onDismiss
+	}
+
+	for (const [jobId, popupId] of terminalNotificationIds) {
+		if (!currentJobIds.has(jobId)) {
+			popupNotificationManager.removeNotification(popupId)
+			terminalNotificationIds.delete(jobId)
+		}
+	}
+}
+
 function buildDownloadItems(): PopupNotificationProgressItem[] {
 	return [
 		...installJobNotifications.progressItems.value,
@@ -358,12 +425,13 @@ function buildDownloadItems(): PopupNotificationProgressItem[] {
 	]
 }
 
-const hasVisibleActiveDownloadToasts = computed(() => !!getNotification())
 const hasActiveLoadingBars = computed(
 	() => currentLoadingBars.value.length > 0 || installJobNotifications.active.value,
 )
 
 function updateNotification(resummon = false): void {
+	syncTerminalNotifications()
+
 	if (resummon) {
 		dismissed.value = false
 	}
@@ -392,7 +460,6 @@ function updateNotification(resummon = false): void {
 			: formatMessage(messages.downloads)
 		notif.text = undefined
 		notif.progressItems = progressItems
-		notif.buttons = installJobNotifications.buttons.value
 		notif.progress = undefined
 		notif.waiting = undefined
 	} else {
@@ -403,7 +470,6 @@ function updateNotification(resummon = false): void {
 			type: 'download',
 			autoCloseMs: null,
 			progressItems,
-			buttons: installJobNotifications.buttons.value,
 		})
 		notificationId.value = notif.id
 	}
@@ -502,6 +568,8 @@ function selectProcess(process: RunningProcess) {
 
 onBeforeUnmount(() => {
 	removeNotification()
+	terminalNotificationIds.forEach((id) => popupNotificationManager.removeNotification(id))
+	terminalNotificationIds.clear()
 	dismissed.value = false
 	window.removeEventListener('offline', handleOffline)
 	window.removeEventListener('online', handleOnline)
diff --git a/apps/app-frontend/src/composables/browse/install-job-notifications.ts b/apps/app-frontend/src/composables/browse/install-job-notifications.ts
index a72e8e6dcb..e405ca26f2 100644
--- a/apps/app-frontend/src/composables/browse/install-job-notifications.ts
+++ b/apps/app-frontend/src/composables/browse/install-job-notifications.ts
@@ -404,8 +404,6 @@ export async function useInstallJobNotifications(opts: {
 	}
 
 	function getProgress(job: InstallJobSnapshot): number {
-		if (job.status === 'succeeded') return 1
-		if (job.status === 'failed' || job.status === 'interrupted') return 0
 		const progress = getEffectiveProgress(job)
 		if (!progress || progress.total <= 0) return 0
 		return Math.max(0, Math.min(1, progress.current / progress.total))
@@ -526,8 +524,12 @@ export async function useInstallJobNotifications(opts: {
 		)
 	}
 
+	const activeJobs = computed(() =>
+		jobs.value.filter((job) => job.status === 'queued' || job.status === 'running'),
+	)
+
 	const progressItems = computed<PopupNotificationProgressItem[]>(() =>
-		jobs.value.map((job) => {
+		activeJobs.value.map((job) => {
 			const progress = getEffectiveProgress(job)
 
 			return {
@@ -536,20 +538,26 @@ export async function useInstallJobNotifications(opts: {
 				text: getText(job),
 				iconUrl: iconUrls.value[job.job_id] ?? null,
 				progress: getProgress(job),
-				waiting: !job.progress && ['queued', 'running'].includes(job.status),
-				showProgress: !isTerminalJob(job),
-				wrapText: isTerminalJob(job),
-				progressType: isTerminalJob(job) ? undefined : getProgressType(job),
-				progressCurrent: isTerminalJob(job) ? undefined : progress?.current,
-				progressTotal: isTerminalJob(job) ? undefined : progress?.total,
+				waiting: !job.progress && job.status === 'running',
+				showProgress: job.status === 'running',
+				progressType: getProgressType(job),
+				progressCurrent: progress?.current,
+				progressTotal: progress?.total,
 				buttons: getButtons(job),
-				dismissible: isTerminalJob(job),
-				onDismiss: getDismissHandler(job),
 			}
 		}),
 	)
 
-	const buttons = computed<PopupNotificationButton[] | undefined>(() => undefined)
+	const terminalNotifications = computed(() =>
+		jobs.value.filter(isTerminalJob).map((job) => ({
+			id: job.job_id,
+			title: getTitle(job),
+			text: getText(job),
+			type: job.status === 'failed' ? ('error' as const) : ('warning' as const),
+			buttons: getButtons(job),
+			onDismiss: getDismissHandler(job),
+		})),
+	)
 
 	async function refreshMetadata(notify = true) {
 		const request = ++metadataRequest
@@ -631,10 +639,10 @@ export async function useInstallJobNotifications(opts: {
 	await refresh(false)
 
 	return {
-		active: computed(() => jobs.value.length > 0),
+		active: computed(() => activeJobs.value.length > 0),
 		title: computed(() => formatMessage(messages.installs)),
 		progressItems,
-		buttons,
+		terminalNotifications,
 		refresh,
 		dispose: () => {
 			for (const timeout of copiedResetTimeouts.values()) {
diff --git a/apps/app-frontend/src/locales/en-US/index.json b/apps/app-frontend/src/locales/en-US/index.json
index 1a1f6ac8c4..2d69b77eed 100644
--- a/apps/app-frontend/src/locales/en-US/index.json
+++ b/apps/app-frontend/src/locales/en-US/index.json
@@ -8,6 +8,9 @@
   "app.action-bar.downloads": {
     "message": "Downloads"
   },
+  "app.action-bar.hide-downloads": {
+    "message": "Hide active downloads"
+  },
   "app.action-bar.hide-more-running-instances": {
     "message": "Hide more running instances"
   },
@@ -110,6 +113,9 @@
   "app.action-bar.reload-to-update": {
     "message": "Reload to update"
   },
+  "app.action-bar.show-downloads": {
+    "message": "Show active downloads"
+  },
   "app.action-bar.show-more-running-instances": {
     "message": "Show more running instances"
   },
diff --git a/packages/ui/src/components/nav/PopupNotificationPanel.vue b/packages/ui/src/components/nav/PopupNotificationPanel.vue
index da57f93c20..6bc6c9c748 100644
--- a/packages/ui/src/components/nav/PopupNotificationPanel.vue
+++ b/packages/ui/src/components/nav/PopupNotificationPanel.vue
@@ -17,6 +17,7 @@
 			>
 				<NotificationToast
 					v-if="item.toast"
+					class="min-w-full"
 					:type="item.toast.type"
 					:action-loading="toastActionLoading(item.id)"
 					:actor-name="item.toast.actorName"
@@ -37,9 +38,15 @@
 					@open-actor="item.toast.onOpenActor?.()"
 					@open-instance="handleToastAction(item, item.toast.onOpenInstance)"
 				/>
-				<div v-else-if="isDownloadNotification(item)" class="flex flex-col gap-4">
+				<TransitionGroup
+					v-else-if="isDownloadNotification(item)"
+					name="popup-downloads"
+					tag="div"
+					class="flex flex-col gap-3"
+				>
 					<div v-for="progressItem in downloadToastItems(item)" :key="progressItem.id">
 						<NotificationToast
+							class="min-w-full"
 							type="instance-download"
 							:entity-name="progressItem.title || item.title"
 							:entity-icon-url="progressItem.iconUrl ?? item.iconUrl ?? MinecraftServerIcon"
@@ -54,10 +61,10 @@
 							:actions="progressItem.buttons"
 							:dismissible="progressItem.dismissible"
 							@dismiss="handleProgressItemDismiss(item, progressItem)"
-							@action="(index) => handleProgressItemAction(progressItem, index)"
+							@action="(index) => handleProgressItemAction(item, progressItem, index)"
 						/>
 					</div>
-				</div>
+				</TransitionGroup>
 				<div
 					v-else
 					class="flex w-full flex-col gap-3 overflow-hidden rounded-2xl bg-bg-raised shadow-xl border-surface-5 border-solid border p-4"
@@ -100,7 +107,7 @@
 								type="quiet"
 								label="Close"
 								class="-m-1.5"
-								@click="dismiss(item.id)"
+								@click="handleNotificationDismiss(item)"
 							>
 								<XIcon />
 							</IconButton>
@@ -201,7 +208,7 @@ import NotificationToast from '../notifications/NotificationToast.vue'
 
 const popupNotificationManager = injectPopupNotificationManager()
 const notifications = computed<PopupNotification[]>(() =>
-	popupNotificationManager.getNotifications(),
+	popupNotificationManager.getVisibleNotifications(),
 )
 const { stackCount } = useModalStack()
 const hasModalActive = computed(() => stackCount.value > 0)
@@ -213,7 +220,6 @@ const activeToastActions = ref<Record<string, 'accept'>>({})
 const stopTimer = (n: PopupNotification) => popupNotificationManager.stopNotificationTimer(n)
 const setNotificationTimer = (n: PopupNotification) =>
 	popupNotificationManager.setNotificationTimer(n)
-const dismiss = (id: string | number) => popupNotificationManager.removeNotification(id)
 const toastActionLoading = (id: string | number) => activeToastActions.value[String(id)] ?? null
 
 function isDownloadNotification(item: PopupNotification) {
@@ -225,7 +231,7 @@ function isDownloadNotification(item: PopupNotification) {
 
 function downloadToastItems(item: PopupNotification): PopupNotificationProgressItem[] {
 	if (item.progressItems?.length) {
-		return item.progressItems
+		return popupNotificationManager.getVisibleDownloadProgressItems(item)
 	}
 
 	return [
@@ -242,35 +248,32 @@ function downloadToastItems(item: PopupNotification): PopupNotificationProgressI
 	]
 }
 
-async function handleProgressItemDismiss(
+function handleProgressItemDismiss(
 	item: PopupNotification,
 	progressItem: PopupNotificationProgressItem,
 ) {
-	if (progressItem.onDismiss) {
-		await progressItem.onDismiss()
-		return
-	}
-
-	dismiss(item.id)
+	popupNotificationManager.hideDownloadItem(item.id, progressItem.id)
 }
 
 async function handleProgressItemAction(
+	item: PopupNotification,
 	progressItem: PopupNotificationProgressItem,
 	index: number,
 ) {
 	const button = progressItem.buttons?.[index]
 	if (button) {
-		await handleProgressItemButtonClick(progressItem, button)
+		await handleProgressItemButtonClick(item, progressItem, button)
 	}
 }
 
 async function handleProgressItemButtonClick(
+	item: PopupNotification,
 	progressItem: PopupNotificationProgressItem,
 	btn: PopupNotificationButton,
 ) {
 	await btn.action()
 	if (!btn.keepOpen) {
-		await progressItem.onDismiss?.()
+		popupNotificationManager.hideDownloadItem(item.id, progressItem.id)
 	}
 }
 
@@ -281,6 +284,11 @@ async function handleButtonClick(id: string | number, btn: PopupNotificationButt
 	}
 }
 
+async function handleNotificationDismiss(item: PopupNotification) {
+	await item.onDismiss?.()
+	popupNotificationManager.removeNotification(item.id)
+}
+
 async function handleToastAction(item: PopupNotification, action?: () => void | Promise<void>) {
 	popupNotificationManager.removeNotification(item.id)
 	await action?.()
@@ -381,6 +389,21 @@ withDefaults(
 
 .popup-notifs-leave-to {
 	opacity: 0;
-	transform: translateX(100%) scale(0.8);
+	transform: translateX(100%);
+}
+
+.popup-downloads-move {
+	transition: transform 0.3s ease-in-out;
+}
+
+.popup-downloads-leave-active {
+	transition:
+		opacity 0.3s ease-in-out,
+		transform 0.3s ease-in-out;
+}
+
+.popup-downloads-leave-to {
+	opacity: 0;
+	transform: translateX(100%);
 }
 </style>
diff --git a/packages/ui/src/providers/popup-notifications.ts b/packages/ui/src/providers/popup-notifications.ts
index 493354cc4a..2c1c545e3b 100644
--- a/packages/ui/src/providers/popup-notifications.ts
+++ b/packages/ui/src/providers/popup-notifications.ts
@@ -1,4 +1,4 @@
-import type { Component } from 'vue'
+import { type Component, type Ref, ref } from 'vue'
 
 import { createContext } from '.'
 
@@ -25,7 +25,6 @@ export interface PopupNotificationProgressItem {
 	progressCurrent?: number
 	progressTotal?: number
 	dismissible?: boolean
-	onDismiss?: () => void | Promise<void>
 	buttons?: PopupNotificationButton[]
 }
 
@@ -73,15 +72,51 @@ export interface PopupNotification {
 	buttons?: PopupNotificationButton[]
 	toast?: PopupNotificationToast
 	dismissible?: boolean
+	onDismiss?: () => void | Promise<void>
 	autoCloseMs?: number | null
 	timer?: NodeJS.Timeout
 }
 
+export interface PopupNotificationDownloadState {
+	total: number
+	hidden: number
+}
+
 export abstract class AbstractPopupNotificationManager {
 	protected readonly DEFAULT_AUTO_CLOSE_MS = 30 * 1000
+	private readonly hiddenDownloadItemKeys: Ref<Set<string>> = ref(new Set())
 
 	abstract getNotifications(): PopupNotification[]
 
+	getDownloadState = (): PopupNotificationDownloadState => {
+		const itemKeys = this.getDownloadNotifications().flatMap((notification) =>
+			this.getDownloadItemKeys(notification),
+		)
+		return {
+			total: itemKeys.length,
+			hidden: itemKeys.filter((key) => this.hiddenDownloadItemKeys.value.has(key)).length,
+		}
+	}
+
+	getVisibleNotifications = (): PopupNotification[] =>
+		this.getNotifications().filter(
+			(notification) =>
+				!this.isDownloadNotification(notification) ||
+				this.getDownloadItemKeys(notification).some(
+					(key) => !this.hiddenDownloadItemKeys.value.has(key),
+				),
+		)
+
+	getVisibleDownloadProgressItems = (
+		notification: PopupNotification,
+	): PopupNotificationProgressItem[] =>
+		(notification.progressItems ?? []).filter(
+			(progressItem) =>
+				!this.hiddenDownloadItemKeys.value.has(
+					this.getDownloadItemKey(notification.id, progressItem.id),
+				),
+		)
+
 	protected abstract addNotificationToStorage(notification: PopupNotification): void
 	protected abstract removeNotificationFromStorage(id: string | number): void
 	protected abstract clearAllNotificationsFromStorage(): void
@@ -103,6 +138,9 @@ export abstract class AbstractPopupNotificationManager {
 		const notification = notifications.find((n) => n.id === id)
 		if (notification) {
 			this.clearNotificationTimer(notification)
+			this.getDownloadItemKeys(notification).forEach((key) =>
+				this.hiddenDownloadItemKeys.value.delete(key),
+			)
 			this.removeNotificationFromStorage(id)
 		}
 	}
@@ -110,6 +148,45 @@ export abstract class AbstractPopupNotificationManager {
 	clearAllNotifications = (): void => {
 		this.getNotifications().forEach((n) => this.clearNotificationTimer(n))
 		this.clearAllNotificationsFromStorage()
+		this.hiddenDownloadItemKeys.value.clear()
+	}
+
+	hideDownloadItem = (notificationId: string | number, progressItemId: string): void => {
+		const notification = this.getDownloadNotifications().find(
+			(candidate) => candidate.id === notificationId,
+		)
+		if (!notification?.progressItems?.some((item) => item.id === progressItemId)) return
+
+		this.hiddenDownloadItemKeys.value.add(this.getDownloadItemKey(notificationId, progressItemId))
+		if (
+			this.getDownloadItemKeys(notification).every((key) =>
+				this.hiddenDownloadItemKeys.value.has(key),
+			)
+		) {
+			this.clearNotificationTimer(notification)
+		}
+	}
+
+	toggleDownloadNotifications = (): void => {
+		const downloadNotifications = this.getDownloadNotifications()
+		const hasHiddenDownloads = downloadNotifications.some((notification) =>
+			this.getDownloadItemKeys(notification).some((key) =>
+				this.hiddenDownloadItemKeys.value.has(key),
+			),
+		)
+
+		if (hasHiddenDownloads) {
+			this.hiddenDownloadItemKeys.value.clear()
+			downloadNotifications.forEach((notification) => this.setNotificationTimer(notification))
+			return
+		}
+
+		downloadNotifications.forEach((notification) => {
+			this.getDownloadItemKeys(notification).forEach((key) =>
+				this.hiddenDownloadItemKeys.value.add(key),
+			)
+			this.clearNotificationTimer(notification)
+		})
 	}
 
 	setNotificationTimer = (notification: PopupNotification): void => {
@@ -134,6 +211,30 @@ export abstract class AbstractPopupNotificationManager {
 			notification.timer = undefined
 		}
 	}
+
+	private isDownloadNotification(notification: PopupNotification): boolean {
+		return notification.type === 'download' || notification.toast?.type === 'instance-download'
+	}
+
+	private getDownloadNotifications(): PopupNotification[] {
+		return this.getNotifications().filter((notification) =>
+			this.isDownloadNotification(notification),
+		)
+	}
+
+	private getDownloadItemKeys(notification: PopupNotification): string[] {
+		if (!this.isDownloadNotification(notification)) return []
+		if (notification.progressItems?.length) {
+			return notification.progressItems.map((progressItem) =>
+				this.getDownloadItemKey(notification.id, progressItem.id),
+			)
+		}
+		return [this.getDownloadItemKey(notification.id)]
+	}
+
+	private getDownloadItemKey(notificationId: string | number, progressItemId?: string): string {
+		return JSON.stringify([typeof notificationId, notificationId, progressItemId ?? null])
+	}
 }
 
 export const [injectPopupNotificationManager, providePopupNotificationManager] =