diff --git a/src/commands/watch.ts b/src/commands/watch.ts
index 0151dcf..0d4a6d7 100644
--- a/src/commands/watch.ts
+++ b/src/commands/watch.ts
@@ -1,11 +1,11 @@
 import type { Command } from "commander";
 
 import {
-  renderTerminal,
   runTarget,
   writeRunArtifact,
   type TargetConfig,
 } from "../index.js";
+import { renderWatchFirstRun, renderWatchNoChanges, renderWatchChanges } from "../reporters/terminal.js";
 import { isCI } from "../ci.js";
 import { defaultRunsDirectory, findLatestArtifact, readArtifact } from "../storage.js";
 import { ANSI, c, formatOutput, targetFromCommand } from "./helpers.js";
@@ -22,6 +22,14 @@ async function runWatchOneShot(
   const artifact = await runTarget(target);
   const outPath = await writeRunArtifact(artifact, outDir);
 
+  // JSON mode bypasses compact rendering
+  if (options.format === "json") {
+    process.stdout.write(formatOutput(artifact, "json") + "\n");
+    process.stdout.write(`${c(ANSI.dim, `Artifact: ${outPath}`)}\n`);
+    if (artifact.gate === "fail") process.exitCode = 1;
+    return;
+  }
+
   // Find the PREVIOUS run for this target (excluding the one just written)
   const previousPath = await findLatestArtifact(outDir, target.targetId, outPath);
   if (previousPath) {
@@ -29,11 +37,15 @@ async function runWatchOneShot(
     if (previousRaw.artifactType === "run") {
       const diffResult = diff(previousRaw, artifact);
 
-      if (diffResult.summary.regressions === 0 && diffResult.summary.recoveries === 0 && diffResult.summary.added === 0 && diffResult.summary.removed === 0) {
-        process.stdout.write(formatOutput(artifact, options.format as "terminal" | "json") + "\n");
-        process.stdout.write(`${c(ANSI.green, "✓ No changes")} since last run\n`);
+      const hasChanges = diffResult.summary.regressions > 0
+        || diffResult.summary.recoveries > 0
+        || diffResult.summary.added > 0
+        || diffResult.summary.removed > 0;
+
+      if (!hasChanges) {
+        process.stdout.write(renderWatchNoChanges(artifact) + "\n");
       } else {
-        process.stdout.write(formatOutput(diffResult, options.format as "terminal" | "json") + "\n");
+        process.stdout.write(renderWatchChanges(artifact, diffResult) + "\n");
       }
       process.stdout.write(`${c(ANSI.dim, `Artifact: ${outPath}`)}\n`);
 
@@ -45,7 +57,7 @@ async function runWatchOneShot(
   }
 
   // First run — no previous artifact to diff against
-  process.stdout.write(formatOutput(artifact, options.format as "terminal" | "json") + "\n");
+  process.stdout.write(renderWatchFirstRun(artifact) + "\n");
   process.stdout.write(`${c(ANSI.dim, `Artifact: ${outPath}`)}\n`);
 
   if (artifact.gate === "fail") {
@@ -62,7 +74,7 @@ async function runWatchMode(target: TargetConfig, outDir: string, intervalSecond
 
   let previousArtifact = await runTarget(target);
   await writeRunArtifact(previousArtifact, outDir);
-  process.stdout.write(`${renderTerminal(previousArtifact)}\n\n`);
+  process.stdout.write(renderWatchFirstRun(previousArtifact) + "\n\n");
 
   const loop = async (): Promise<void> => {
     await new Promise((resolve) => setTimeout(resolve, intervalSeconds * 1000));
@@ -72,9 +84,9 @@ async function runWatchMode(target: TargetConfig, outDir: string, intervalSecond
 
     if (diffResult.summary.regressions > 0 || diffResult.summary.recoveries > 0 || diffResult.summary.added > 0 || diffResult.summary.removed > 0) {
       const outPath = await writeRunArtifact(currentArtifact, outDir);
-      process.stdout.write(`\n--- Change detected at ${currentArtifact.createdAt} ---\n`);
-      process.stdout.write(`${renderTerminal(diffResult)}\n`);
-      process.stdout.write(`Artifact: ${outPath}\n\n`);
+      process.stdout.write(`\n--- ${new Date().toLocaleTimeString()} ---\n`);
+      process.stdout.write(renderWatchChanges(currentArtifact, diffResult) + "\n");
+      process.stdout.write(`${c(ANSI.dim, `Artifact: ${outPath}`)}\n\n`);
     }
 
     previousArtifact = currentArtifact;
diff --git a/src/index.ts b/src/index.ts
index ec304a9..6f4e710 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -16,7 +16,7 @@ export { renderHtml } from "./reporters/html.js";
 export { renderJUnit } from "./reporters/junit.js";
 export { renderMarkdown } from "./reporters/markdown.js";
 export { renderSarif } from "./reporters/sarif.js";
-export { renderTerminal } from "./reporters/terminal.js";
+export { renderTerminal, renderWatchFirstRun, renderWatchNoChanges, renderWatchChanges } from "./reporters/terminal.js";
 export { runTarget, runTargetRecording, type RunOptions, type RunResult } from "./runner.js";
 export { computeHealthScore, type ScoreWeights, DEFAULT_WEIGHTS } from "./score.js";
 export {
diff --git a/src/reporters/terminal.ts b/src/reporters/terminal.ts
index 6a449bf..27caf1d 100644
--- a/src/reporters/terminal.ts
+++ b/src/reporters/terminal.ts
@@ -6,6 +6,110 @@ import {
   sortChecksByActionability
 } from "./common.js";
 
+// ── Watch-specific compact renderers ────────────────────────────────────────
+
+function watchStatusIcon(status: CheckStatus): string {
+  switch (status) {
+    case "pass": return co(ANSI.green, "✓");
+    case "fail": return co(ANSI.red, "✗");
+    case "partial":
+    case "flaky": return co(ANSI.yellow, "⚠");
+    case "unsupported":
+    case "skipped": return co(ANSI.dim, "–");
+  }
+}
+
+function scoreString(artifact: RunArtifact): string {
+  if (!artifact.healthScore) return "";
+  const s = artifact.healthScore;
+  const color = s.grade === "A" || s.grade === "B" ? ANSI.green
+    : s.grade === "C" ? ANSI.yellow : ANSI.red;
+  return co(color, `${s.overall}/100 (${s.grade})`);
+}
+
+function serverLabel(artifact: RunArtifact): string {
+  const name = artifact.target.serverName ?? artifact.target.targetId;
+  const version = artifact.target.serverVersion ?? "";
+  return version ? `${name} ${version}` : name;
+}
+
+/** Compact single-line header: server name — score — gate */
+function watchHeader(artifact: RunArtifact): string {
+  const parts = [co(ANSI.bold, serverLabel(artifact))];
+  const score = scoreString(artifact);
+  if (score) parts.push(score);
+  parts.push(artifact.gate === "pass" ? co(ANSI.green, "pass") : co(ANSI.red, "FAIL"));
+  return parts.join(" — ");
+}
+
+/** First run: header + one line per check + fatal error if any */
+export function renderWatchFirstRun(artifact: RunArtifact): string {
+  const lines = [watchHeader(artifact)];
+
+  if (artifact.fatalError !== undefined) {
+    lines.push("");
+    lines.push(co(ANSI.red, "Server failed to start:"));
+    // Show just the diagnosis, not the full multi-paragraph dump
+    const diagLines = artifact.fatalError.split("\n");
+    const diagIdx = diagLines.findIndex(l => l.startsWith("Diagnosis:"));
+    if (diagIdx >= 0) {
+      lines.push(`  ${diagLines[diagIdx]}`);
+    } else {
+      lines.push(`  ${diagLines[0]}`);
+    }
+    return lines.join("\n");
+  }
+
+  const orderedChecks = sortChecksByActionability(artifact.checks);
+  for (const check of orderedChecks) {
+    const icon = watchStatusIcon(check.status);
+    // Compact: only show detail for non-pass checks
+    if (check.status === "pass") {
+      lines.push(`  ${icon} ${check.id}`);
+    } else {
+      lines.push(`  ${icon} ${check.id}  ${co(ANSI.dim, check.message)}`);
+    }
+  }
+
+  return lines.join("\n");
+}
+
+/** No changes: header + ✓ */
+export function renderWatchNoChanges(artifact: RunArtifact): string {
+  return `${watchHeader(artifact)}\n${co(ANSI.green, "✓ No changes")}`;
+}
+
+/** Changes detected: header + only the changes */
+export function renderWatchChanges(artifact: RunArtifact, diff: DiffArtifact): string {
+  const lines = [watchHeader(artifact)];
+
+  if (diff.regressions.length > 0) {
+    lines.push("");
+    for (const e of diff.regressions) {
+      lines.push(co(ANSI.red, `  ✗ ${e.id}: ${e.fromStatus ?? "n/a"} → ${e.toStatus ?? "n/a"}  ${e.message}`));
+    }
+  }
+  if (diff.recoveries.length > 0) {
+    lines.push("");
+    for (const e of diff.recoveries) {
+      lines.push(co(ANSI.green, `  ✓ ${e.id}: ${e.fromStatus ?? "n/a"} → ${e.toStatus ?? "n/a"}  ${e.message}`));
+    }
+  }
+  if (diff.schemaDrift && diff.schemaDrift.length > 0) {
+    lines.push("");
+    for (const e of diff.schemaDrift) {
+      lines.push(co(ANSI.yellow, `  ⚠ ${e.name} (${e.capability}): ${e.changes.join(", ")}`));
+    }
+  }
+  if (diff.responseChanges && diff.responseChanges.length > 0) {
+    for (const e of diff.responseChanges) {
+      lines.push(co(ANSI.yellow, `  ⚠ ${e.name} (${e.capability}): ${e.change}`));
+    }
+  }
+
+  return lines.join("\n");
+}
+
 const ANSI = {
   red: "\x1b[31m",
   green: "\x1b[32m",