diff --git a/builds/typescript/client_web/src/hooks/useProjects.test.ts b/builds/typescript/client_web/src/hooks/useProjects.test.ts
new file mode 100644
index 0000000..2ddaa04
--- /dev/null
+++ b/builds/typescript/client_web/src/hooks/useProjects.test.ts
@@ -0,0 +1,101 @@
+import { act, renderHook, waitFor } from "@testing-library/react";
+
+import type { Project, ProjectFile } from "@/types/ui";
+
+import { useProjects } from "./useProjects";
+
+const listProjectsMock = vi.fn<() => Promise<Project[]>>();
+const getProjectFilesMock = vi.fn<(projectId: string) => Promise<ProjectFile[]>>();
+const createProjectMock = vi.fn<(name: string) => Promise<Project>>();
+const deleteProjectMock = vi.fn<(id: string) => Promise<void>>();
+const renameProjectMock = vi.fn<(id: string, name: string) => Promise<void>>();
+
+vi.mock("@/api/gateway-adapter", () => ({
+  listProjects: () => listProjectsMock(),
+  getProjectFiles: (projectId: string) => getProjectFilesMock(projectId),
+  createProject: (name: string) => createProjectMock(name),
+  deleteProject: (id: string) => deleteProjectMock(id),
+  renameProject: (id: string, name: string) => renameProjectMock(id, name),
+}));
+
+function deferred<T>() {
+  let resolve!: (value: T | PromiseLike<T>) => void;
+  let reject!: (reason?: unknown) => void;
+  const promise = new Promise<T>((res, rej) => {
+    resolve = res;
+    reject = rej;
+  });
+  return { promise, resolve, reject };
+}
+
+const defaultProjects: Project[] = [
+  {
+    id: "braindrive-plus-one",
+    name: "BrainDrive+1",
+    icon: "sparkles",
+    conversationId: "conv-plus-one",
+  },
+  {
+    id: "finance",
+    name: "Finance",
+    icon: "dollar-sign",
+    conversationId: "conv-finance",
+  },
+];
+
+describe("useProjects", () => {
+  beforeEach(() => {
+    listProjectsMock.mockReset();
+    getProjectFilesMock.mockReset();
+    createProjectMock.mockReset();
+    deleteProjectMock.mockReset();
+    renameProjectMock.mockReset();
+
+    listProjectsMock.mockResolvedValue(defaultProjects);
+    getProjectFilesMock.mockResolvedValue([]);
+    createProjectMock.mockResolvedValue(defaultProjects[1]!);
+    deleteProjectMock.mockResolvedValue();
+    renameProjectMock.mockResolvedValue();
+  });
+
+  it("does not show projects loading state during background refreshes", async () => {
+    const { result } = renderHook(() => useProjects());
+
+    await waitFor(() => {
+      expect(result.current.isLoadingProjects).toBe(false);
+    });
+
+    const nextRefresh = deferred<Project[]>();
+    listProjectsMock.mockReturnValueOnce(nextRefresh.promise);
+
+    act(() => {
+      result.current.refreshProjects();
+    });
+
+    expect(result.current.isLoadingProjects).toBe(false);
+
+    nextRefresh.resolve(defaultProjects);
+
+    await waitFor(() => {
+      expect(listProjectsMock).toHaveBeenCalledTimes(2);
+    });
+  });
+
+  it("does not re-fetch files when selecting the active project", async () => {
+    const { result } = renderHook(() => useProjects());
+
+    await waitFor(() => {
+      expect(result.current.selectedProjectId).toBe("braindrive-plus-one");
+      expect(result.current.isLoadingFiles).toBe(false);
+    });
+
+    expect(getProjectFilesMock).toHaveBeenCalledTimes(1);
+
+    act(() => {
+      result.current.selectProject("braindrive-plus-one");
+    });
+
+    expect(getProjectFilesMock).toHaveBeenCalledTimes(1);
+    expect(result.current.isLoadingFiles).toBe(false);
+  });
+});
diff --git a/builds/typescript/client_web/src/hooks/useProjects.ts b/builds/typescript/client_web/src/hooks/useProjects.ts
index 0742866..910d53a 100644
--- a/builds/typescript/client_web/src/hooks/useProjects.ts
+++ b/builds/typescript/client_web/src/hooks/useProjects.ts
@@ -55,7 +55,12 @@ export function useProjects(): {
   function refreshProjects() {
     const requestId = projectsRequestIdRef.current + 1;
     projectsRequestIdRef.current = requestId;
-    setIsLoadingProjects(true);
+    const shouldShowLoadingState = projects.length === 0;
+
+    if (shouldShowLoadingState) {
+      setIsLoadingProjects(true);
+    }
+
     setProjectsError(null);
 
     void (async () => {
@@ -72,10 +77,13 @@ export function useProjects(): {
           return;
         }
 
-        setProjects([]);
+        if (shouldShowLoadingState) {
+          setProjects([]);
+        }
+
         setProjectsError(toError(error));
       } finally {
-        if (projectsRequestIdRef.current === requestId) {
+        if (projectsRequestIdRef.current === requestId && shouldShowLoadingState) {
           setIsLoadingProjects(false);
         }
       }
@@ -100,9 +108,13 @@ export function useProjects(): {
         selectProject(bdPlusOne.id);
       }
     }
-  }, [projects]);
+  }, [projects, selectedProjectId]);
 
   function selectProject(id: string) {
+    if (id === selectedProjectId) {
+      return;
+    }
+
     setSelectedProjectId(id);
     setProjectFiles([]);
     setIsLoadingFiles(true);