diff --git a/lib/services/package_manager/install_operation.dart b/lib/services/package_manager/install_operation.dart
index 5cbfc19..a3b2d41 100644
--- a/lib/services/package_manager/install_operation.dart
+++ b/lib/services/package_manager/install_operation.dart
@@ -6,8 +6,10 @@ const staleOperationThreshold = Duration(days: 7);
 /// Delay between queueing operations to prevent UI flood
 const batchQueueDelayMs = 50;
 
-/// Dart-side watchdog timeout (fallback if native events stop arriving)
-const watchdogTimeout = Duration(minutes: 1);
+/// Dart-side watchdog timeout (fallback if native events stop arriving).
+/// For downloads, this is measured from the last progress update (activity-based).
+/// For other phases, this is measured from when the phase started.
+const watchdogTimeout = Duration(minutes: 2);
 
 /// How often the watchdog timer checks for stale operations
 const watchdogCheckInterval = Duration(seconds: 30);
@@ -42,12 +44,18 @@ class Downloading extends InstallOperation {
   final String taskId;
   final DateTime startedAt;
 
+  /// Last time progress was received. The watchdog uses this (not [startedAt])
+  /// so that slow-but-active downloads are not killed prematurely.
+  final DateTime lastProgressAt;
+
   Downloading({
     required super.target,
     required this.progress,
     required this.taskId,
     DateTime? startedAt,
-  }) : startedAt = startedAt ?? DateTime.now();
+    DateTime? lastProgressAt,
+  }) : startedAt = startedAt ?? DateTime.now(),
+       lastProgressAt = lastProgressAt ?? startedAt ?? DateTime.now();
 
   Downloading copyWith({double? progress}) {
     return Downloading(
@@ -55,6 +63,8 @@ class Downloading extends InstallOperation {
       progress: progress ?? this.progress,
       taskId: taskId,
       startedAt: startedAt,
+      // Reset activity timestamp when progress changes
+      lastProgressAt: progress != null ? DateTime.now() : lastProgressAt,
     );
   }
 }
@@ -259,9 +269,11 @@ extension InstallOperationX on InstallOperation {
   /// Whether this operation is still in progress (not terminal)
   bool get isInProgress => !isTerminal;
 
-  /// Get start time for watchdog-monitored operations
-  DateTime? get startedAt => switch (this) {
-    Downloading(:final startedAt) => startedAt,
+  /// Get the relevant timestamp for watchdog monitoring.
+  /// For downloads: last progress update (activity-based, so slow downloads survive).
+  /// For other phases: when the phase started.
+  DateTime? get watchdogTimestamp => switch (this) {
+    Downloading(:final lastProgressAt) => lastProgressAt,
     Verifying(:final startedAt) => startedAt,
     Installing(:final startedAt) => startedAt,
     SystemProcessing(:final startedAt) => startedAt,
diff --git a/lib/services/package_manager/package_manager.dart b/lib/services/package_manager/package_manager.dart
index ebf1ab1..f208334 100644
--- a/lib/services/package_manager/package_manager.dart
+++ b/lib/services/package_manager/package_manager.dart
@@ -217,9 +217,9 @@ abstract class PackageManager extends StateNotifier<PackageManagerState> {
     for (final entry in state.operations.entries) {
       final appId = entry.key;
       final op = entry.value;
-      final startedAt = op.startedAt;
+      final timestamp = op.watchdogTimestamp;
 
-      if (startedAt == null || now.difference(startedAt) <= watchdogTimeout) {
+      if (timestamp == null || now.difference(timestamp) <= watchdogTimeout) {
         continue;
       }
 
diff --git a/work/WORK-001-package-manager.md b/work/WORK-001-package-manager.md
index 5d8be49..732e523 100644
--- a/work/WORK-001-package-manager.md
+++ b/work/WORK-001-package-manager.md
@@ -135,8 +135,10 @@ Code audit found several potential hanging state bugs not covered by existing ti
 
 - [x] 5. Add Dart-side watchdog timer as fallback
   - Added `startedAt` field to `Verifying` and `SystemProcessing` states
-  - Added `needsWatchdog` and `startedAt` getters to extension for uniform access
-  - Single 5-minute timeout for all watchdog-monitored states
+  - Added `needsWatchdog` and `watchdogTimestamp` getters to extension for uniform access
+  - Activity-based watchdog for downloads: tracks `lastProgressAt` (reset on each progress update) so slow-but-active downloads are not killed
+  - Phase-start-based watchdog for Verifying/Installing/SystemProcessing (uses `startedAt`)
+  - Single 2-minute timeout for all watchdog-monitored states
   - Timer runs every 30s, only when there are operations needing watchdog
   - Transitions stale operations to `OperationFailed` state
 
@@ -271,10 +273,16 @@ Every state MUST resolve to a terminal state. No exceptions.
 
 ### Dart-side Watchdog (Fallback)
 
-Single 5-minute timeout for all watchdog-monitored states (Verifying, Installing, SystemProcessing).
-Timer runs every 30s, only when monitored operations exist.
+2-minute timeout for all watchdog-monitored states. Timer runs every 30s, only when monitored operations exist.
 Defense-in-depth for cases where EventChannel breaks or native crashes before sending events.
 
+| Phase | Measures from | Rationale |
+|-------|---------------|-----------|
+| Downloading | Last progress update (`lastProgressAt`) | Slow-but-active downloads must not be killed |
+| Verifying | Phase start (`startedAt`) | Short operation, elapsed time is appropriate |
+| Installing | Phase start (`startedAt`) | Short operation, elapsed time is appropriate |
+| SystemProcessing | Phase start (`startedAt`) | Committed session, elapsed time is appropriate |
+
 ### Session Tracking Maps
 
 | Map | Purpose |