diff --git a/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/DepotDownloader.kt b/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/DepotDownloader.kt
index 3a8498f5..e7152522 100644
--- a/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/DepotDownloader.kt
+++ b/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/DepotDownloader.kt
@@ -154,6 +154,9 @@ class DepotDownloader @JvmOverloads constructor(
 
     private val listeners = CopyOnWriteArrayList<IDownloadListener>()
 
+    @Volatile
+    private var currentPhase: DownloadPhase = DownloadPhase.UNKNOWN
+
     private val progressUpdateInterval = 500L // ms
 
     private val scope: CoroutineScope = CoroutineScope(Dispatchers.IO + SupervisorJob(parentJob))
@@ -984,6 +987,7 @@ class DepotDownloader @JvmOverloads constructor(
             } else {
                 logger?.debug("Downloading depot ${depot.depotId} manifest")
                 notifyListeners { it.onStatusUpdate("Downloading manifest for depot ${depot.depotId}") }
+                transitionPhase(DownloadPhase.PREPARING)
 
                 var manifestRequestCode: ULong = 0U
                 var manifestRequestCodeExpiration = Instant.MIN
@@ -1270,6 +1274,7 @@ class DepotDownloader @JvmOverloads constructor(
         if (!fileDidExist) {
             logger?.debug("Pre-allocating: $fileFinalPath")
             notifyListeners { it.onStatusUpdate("Allocating file: ${file.fileName}") }
+            transitionPhase(DownloadPhase.PREPARING)
 
             // create new file. need all chunks
             try {
@@ -1390,6 +1395,7 @@ class DepotDownloader @JvmOverloads constructor(
             filesystem.openReadOnly(fileFinalPath).use { handle ->
                 logger?.debug("Validating $fileFinalPath")
                 notifyListeners { it.onStatusUpdate("Validating: ${file.fileName}") }
+                transitionPhase(DownloadPhase.VERIFYING)
 
                 neededChunks = Util.validateSteam3FileChecksums(
                     handle = handle,
@@ -1570,6 +1576,9 @@ class DepotDownloader @JvmOverloads constructor(
         // Throw the cancellation exception if requested so that this task is marked failed
         ensureActive()
 
+        // Transition to DOWNLOADING while actively fetching chunks from the network
+        transitionPhase(DownloadPhase.DOWNLOADING)
+
         // Create temporary file path for this chunk
         val chunkTempDir = depot.installDir / STAGING_DIR / "chunks" / fileId
         filesystem.createDirectories(chunkTempDir)
@@ -1625,6 +1634,7 @@ class DepotDownloader @JvmOverloads constructor(
         }
 
         if (processingItemsMap.isEmpty()) {
+            transitionPhase(DownloadPhase.COMPLETE)
             completionFuture.complete(null)
         }
     }
@@ -1647,6 +1657,13 @@ class DepotDownloader @JvmOverloads constructor(
         }
     }
 
+    // Notify listeners only when the phase actually changes
+    private fun transitionPhase(newPhase: DownloadPhase) {
+        if (currentPhase == newPhase) return
+        currentPhase = newPhase
+        notifyListeners { it.onPhaseChanged(newPhase) }
+    }
+
     // endregion
 
     // region [REGION] Queue Operations
@@ -1889,6 +1906,9 @@ class DepotDownloader @JvmOverloads constructor(
 
             val depotPercentage = (sizeDownloaded.toFloat() / depotDownloadCounter.completeDownloadSize)
 
+            // Transition to DECOMPRESSING while processing decompression chunks
+            transitionPhase(DownloadPhase.DECOMPRESSING)
+
             notifyListeners { listener ->
                 listener.onChunkCompleted(
                     depotId = depot.depotId,
diff --git a/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/DownloadPhase.kt b/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/DownloadPhase.kt
new file mode 100644
index 00000000..71ce698c
--- /dev/null
+++ b/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/DownloadPhase.kt
@@ -0,0 +1,11 @@
+package `in`.dragonbra.javasteam.depotdownloader
+
+// High level download phases reported by DepotDownloader
+enum class DownloadPhase {
+    UNKNOWN,
+    PREPARING,
+    DOWNLOADING,
+    DECOMPRESSING,
+    VERIFYING,
+    COMPLETE,
+}
diff --git a/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/IDownloadListener.kt b/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/IDownloadListener.kt
index f005c6cb..f3ecb715 100644
--- a/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/IDownloadListener.kt
+++ b/javasteam-depotdownloader/src/main/kotlin/in/dragonbra/javasteam/depotdownloader/IDownloadListener.kt
@@ -68,4 +68,7 @@ interface IDownloadListener {
      * @param uncompressedBytes Actual data size (uncompressed)
      */
     fun onDepotCompleted(depotId: Int, compressedBytes: Long, uncompressedBytes: Long) {}
+
+    // Called when the download transitions to a new phase
+    fun onPhaseChanged(phase: DownloadPhase) {}
 }