diff --git a/ui/src/components/ProcessDiagram/CompoundNode.tsx b/ui/src/components/ProcessDiagram/CompoundNode.tsx
index 2e20f5d4..3e96d029 100644
--- a/ui/src/components/ProcessDiagram/CompoundNode.tsx
+++ b/ui/src/components/ProcessDiagram/CompoundNode.tsx
@@ -71,6 +71,10 @@ export function CompoundNode({
   const isGated = ownState?.filterMatched === false || ownState?.duplicateMessage === true;
   const effectiveColor = isGated ? 'var(--amber)' : color;
 
+  // Dim compound when overlay is active but neither the compound nor any
+  // descendant was executed in the current iteration.
+  const isSkipped = overlayActive && !ownState && !hasExecutedDescendant(node, executionOverlay);
+
   // _TRY_BODY / _CB_MAIN: transparent wrapper — no header, no border, just layout
   if (node.type === '_TRY_BODY' || node.type === '_CB_MAIN') {
     return (
@@ -85,7 +89,7 @@ export function CompoundNode({
   if (node.type === '_CB_FALLBACK') {
     const fallbackColor = '#7C3AED'; // EIP purple
     return (
-      <g data-node-id={node.id} transform={`translate(${x}, ${y})`}>
+      <g data-node-id={node.id} transform={`translate(${x}, ${y})`} opacity={isSkipped ? 0.35 : undefined}>
         <rect x={0} y={0} width={w} height={h} rx={CORNER_RADIUS}
           fill={fallbackColor} fillOpacity={0.06} />
         <rect x={0} y={0} width={w} height={h} rx={CORNER_RADIUS}
@@ -106,7 +110,7 @@ export function CompoundNode({
       : (node.label ? `finally: ${node.label}` : 'finally');
 
     return (
-      <g data-node-id={node.id} transform={`translate(${x}, ${y})`}>
+      <g data-node-id={node.id} transform={`translate(${x}, ${y})`} opacity={isSkipped ? 0.35 : undefined}>
         {/* Tinted background */}
         <rect x={0} y={0} width={w} height={h} rx={CORNER_RADIUS}
           fill={color} fillOpacity={0.06} />
@@ -126,7 +130,7 @@ export function CompoundNode({
   // Default compound rendering (DO_TRY, EIP_CHOICE, EIP_FILTER, EIP_IDEMPOTENT_CONSUMER, etc.)
   const containerFill = isGated ? 'var(--amber-bg)' : 'white';
   return (
-    <g data-node-id={node.id} transform={`translate(${x}, ${y})`}>
+    <g data-node-id={node.id} transform={`translate(${x}, ${y})`} opacity={isSkipped ? 0.35 : undefined}>
       {/* Container body */}
       <rect
         x={0}
@@ -268,3 +272,15 @@ function collectIds(nodes: DiagramNodeType[], set: Set<string>) {
     if (n.children) collectIds(n.children, set);
   }
 }
+
+function hasExecutedDescendant(
+  node: DiagramNodeType,
+  overlay?: Map<string, NodeExecutionState>,
+): boolean {
+  if (!overlay || !node.children) return false;
+  for (const child of node.children) {
+    if (child.id && overlay.has(child.id)) return true;
+    if (child.children && hasExecutedDescendant(child, overlay)) return true;
+  }
+  return false;
+}