diff --git a/src/main/services/error/ErrorTriggerChecker.ts b/src/main/services/error/ErrorTriggerChecker.ts
index 9ddbf3de..4887ee6d 100644
--- a/src/main/services/error/ErrorTriggerChecker.ts
+++ b/src/main/services/error/ErrorTriggerChecker.ts
@@ -185,7 +185,7 @@ export function checkToolResultTrigger(
         sessionId,
         projectId,
         filePath,
-        projectName: extractProjectName(projectId),
+        projectName: extractProjectName(projectId, message.cwd),
         lineNumber,
         source: result.toolName ?? 'tool_result',
         message: errorMessage,
@@ -220,7 +220,7 @@ export function checkToolResultTrigger(
           sessionId,
           projectId,
           filePath,
-          projectName: extractProjectName(projectId),
+          projectName: extractProjectName(projectId, message.cwd),
           lineNumber,
           source: trigger.toolName,
           message: `Tool result matched: ${content.slice(0, 200)}`,
@@ -296,7 +296,7 @@ export function checkToolUseTrigger(
       sessionId,
       projectId,
       filePath,
-      projectName: extractProjectName(projectId),
+      projectName: extractProjectName(projectId, message.cwd),
       lineNumber,
       source: toolUse.name,
       message: `${trigger.matchField ?? 'tool_use'}: ${fieldValue.slice(0, 200)}`,
@@ -443,7 +443,7 @@ export function checkTokenThresholdTrigger(
         sessionId,
         projectId,
         filePath,
-        projectName: extractProjectName(projectId),
+        projectName: extractProjectName(projectId, message.cwd),
         lineNumber,
         source: toolUse.name,
         message: tokenMessage,
diff --git a/src/main/utils/pathDecoder.ts b/src/main/utils/pathDecoder.ts
index fea1038b..7faebb2b 100644
--- a/src/main/utils/pathDecoder.ts
+++ b/src/main/utils/pathDecoder.ts
@@ -68,7 +68,14 @@ export function decodePath(encodedName: string): string {
  * @param encodedName - The encoded directory name
  * @returns The project name
  */
-export function extractProjectName(encodedName: string): string {
+export function extractProjectName(encodedName: string, cwdHint?: string): string {
+  // Prefer cwdHint (actual filesystem path) since decodePath is lossy for
+  // paths containing dashes (e.g., "claude-code-context" → "claude/code/context").
+  if (cwdHint) {
+    const segments = cwdHint.split(/[/\\]/).filter(Boolean);
+    const last = segments[segments.length - 1];
+    if (last) return last;
+  }
   const decoded = decodePath(encodedName);
   const segments = decoded.split('/').filter(Boolean);
   return segments[segments.length - 1] || encodedName;
diff --git a/src/renderer/components/notifications/NotificationRow.tsx b/src/renderer/components/notifications/NotificationRow.tsx
index 69bf8a4e..950d96f1 100644
--- a/src/renderer/components/notifications/NotificationRow.tsx
+++ b/src/renderer/components/notifications/NotificationRow.tsx
@@ -74,6 +74,7 @@ export const NotificationRow = ({
       style={{
         borderColor: 'var(--color-border)',
         backgroundColor: isHovered ? 'var(--color-surface-raised)' : undefined,
+        opacity: isUnread ? 1 : 0.5,
       }}
     >
       {/* Color Dot — always visible, opacity indicates read state */}
diff --git a/test/main/utils/pathDecoder.test.ts b/test/main/utils/pathDecoder.test.ts
index d3e4d178..c7e7d293 100644
--- a/test/main/utils/pathDecoder.test.ts
+++ b/test/main/utils/pathDecoder.test.ts
@@ -96,6 +96,19 @@ describe('pathDecoder', () => {
     it('should handle path with underscore in project name', () => {
       expect(extractProjectName('-Users-username-my_cool_projectname')).toBe('my_cool_projectname');
     });
+
+    it('should prefer cwdHint over lossy decode for dashed project names', () => {
+      // Without cwdHint, dashes are decoded as slashes (lossy)
+      expect(extractProjectName('-Users-name-claude-code-context')).toBe('context');
+      // With cwdHint, the actual project name is preserved
+      expect(
+        extractProjectName('-Users-name-claude-code-context', '/Users/name/claude-code-context')
+      ).toBe('claude-code-context');
+    });
+
+    it('should fall back to decoded name when cwdHint is undefined', () => {
+      expect(extractProjectName('-Users-username-projectname', undefined)).toBe('projectname');
+    });
   });
 
   describe('isValidEncodedPath', () => {