diff --git a/pyproject.toml b/pyproject.toml
index a9d504e..80086a5 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "uipath-runtime"
-version = "0.8.5"
+version = "0.8.6"
 description = "Runtime abstractions and interfaces for building agents and automation scripts in the UiPath ecosystem"
 readme = { file = "README.md", content-type = "text/markdown" }
 requires-python = ">=3.11"
diff --git a/src/uipath/runtime/events/__init__.py b/src/uipath/runtime/events/__init__.py
index f307f62..a7aace5 100644
--- a/src/uipath/runtime/events/__init__.py
+++ b/src/uipath/runtime/events/__init__.py
@@ -8,7 +8,11 @@
 All events inherit from UiPathRuntimeEvent and can be filtered by execution_id.
 """
 
-from uipath.runtime.events.base import UiPathRuntimeEvent, UiPathRuntimeEventType
+from uipath.runtime.events.base import (
+    UiPathRuntimeEvent,
+    UiPathRuntimeEventType,
+    UiPathRuntimeStatePhase,
+)
 from uipath.runtime.events.state import (
     UiPathRuntimeMessageEvent,
     UiPathRuntimeStateEvent,
@@ -18,6 +22,7 @@
     # Base
     "UiPathRuntimeEvent",
     "UiPathRuntimeEventType",
+    "UiPathRuntimeStatePhase",
     # Runtime events
     "UiPathRuntimeStateEvent",
     "UiPathRuntimeMessageEvent",
diff --git a/src/uipath/runtime/events/base.py b/src/uipath/runtime/events/base.py
index d69016d..d305e1e 100644
--- a/src/uipath/runtime/events/base.py
+++ b/src/uipath/runtime/events/base.py
@@ -15,6 +15,15 @@ class UiPathRuntimeEventType(str, Enum):
     RUNTIME_RESULT = "runtime_result"
 
 
+class UiPathRuntimeStatePhase(str, Enum):
+    """Lifecycle phase of a state event."""
+
+    STARTED = "started"
+    UPDATED = "updated"
+    COMPLETED = "completed"
+    FAULTED = "faulted"
+
+
 class UiPathRuntimeEvent(BaseModel):
     """Base class for all UiPath runtime events."""
 
@@ -29,4 +38,4 @@ class UiPathRuntimeEvent(BaseModel):
     )
 
 
-__all__ = ["UiPathRuntimeEventType", "UiPathRuntimeEvent"]
+__all__ = ["UiPathRuntimeEventType", "UiPathRuntimeStatePhase", "UiPathRuntimeEvent"]
diff --git a/src/uipath/runtime/events/state.py b/src/uipath/runtime/events/state.py
index 093ed9c..735fbb6 100644
--- a/src/uipath/runtime/events/state.py
+++ b/src/uipath/runtime/events/state.py
@@ -4,7 +4,11 @@
 
 from pydantic import Field
 
-from uipath.runtime.events.base import UiPathRuntimeEvent, UiPathRuntimeEventType
+from uipath.runtime.events.base import (
+    UiPathRuntimeEvent,
+    UiPathRuntimeEventType,
+    UiPathRuntimeStatePhase,
+)
 
 
 class UiPathRuntimeMessageEvent(UiPathRuntimeEvent):
@@ -69,6 +73,10 @@ class UiPathRuntimeStateEvent(UiPathRuntimeEvent):
         default=None,
         description="Fully qualified node name including subgraph hierarchy prefix",
     )
+    phase: UiPathRuntimeStatePhase = Field(
+        default=UiPathRuntimeStatePhase.UPDATED,
+        description="Lifecycle phase: started, updated, or completed",
+    )
     event_type: UiPathRuntimeEventType = Field(
         default=UiPathRuntimeEventType.RUNTIME_STATE, frozen=True
     )
diff --git a/tests/test_events.py b/tests/test_events.py
new file mode 100644
index 0000000..424fbf4
--- /dev/null
+++ b/tests/test_events.py
@@ -0,0 +1,147 @@
+from typing import Any, AsyncGenerator
+
+import pytest
+
+from uipath.runtime.base import UiPathStreamOptions
+from uipath.runtime.events import (
+    UiPathRuntimeEvent,
+    UiPathRuntimeStateEvent,
+    UiPathRuntimeStatePhase,
+)
+from uipath.runtime.result import UiPathRuntimeResult, UiPathRuntimeStatus
+
+
+def test_state_event_phase_defaults_to_updated() -> None:
+    """Phase should default to UPDATED for backward compatibility."""
+    event = UiPathRuntimeStateEvent(payload={"messages": []})
+
+    assert event.phase == UiPathRuntimeStatePhase.UPDATED
+
+
+def test_state_event_phase_can_be_set_explicitly() -> None:
+    """Phase should accept any valid UiPathRuntimeStatePhase value."""
+    for phase in UiPathRuntimeStatePhase:
+        event = UiPathRuntimeStateEvent(payload={}, phase=phase)
+        assert event.phase == phase
+
+
+class PhaseAwareMockRuntime:
+    """Mock runtime that emits started/updated/completed state events per node."""
+
+    def __init__(self, nodes: list[str], *, failing_node: str | None = None) -> None:
+        self.nodes = nodes
+        self.failing_node = failing_node
+
+    async def stream(
+        self,
+        input: dict[str, Any] | None = None,
+        options: UiPathStreamOptions | None = None,
+    ) -> AsyncGenerator[UiPathRuntimeEvent, None]:
+        for node in self.nodes:
+            yield UiPathRuntimeStateEvent(
+                node_name=node,
+                payload={},
+                phase=UiPathRuntimeStatePhase.STARTED,
+            )
+
+            if node == self.failing_node:
+                yield UiPathRuntimeStateEvent(
+                    node_name=node,
+                    payload={"error": f"{node} failed"},
+                    phase=UiPathRuntimeStatePhase.FAULTED,
+                )
+                yield UiPathRuntimeResult(
+                    status=UiPathRuntimeStatus.FAULTED,
+                    output={"error": f"{node} failed"},
+                )
+                return
+
+            yield UiPathRuntimeStateEvent(
+                node_name=node,
+                payload={"key": f"{node}_value"},
+                phase=UiPathRuntimeStatePhase.UPDATED,
+            )
+            yield UiPathRuntimeStateEvent(
+                node_name=node,
+                payload={"key": f"{node}_value"},
+                phase=UiPathRuntimeStatePhase.COMPLETED,
+            )
+
+        yield UiPathRuntimeResult(
+            status=UiPathRuntimeStatus.SUCCESSFUL,
+            output={"done": True},
+        )
+
+
+@pytest.mark.asyncio
+async def test_runtime_stream_emits_phase_lifecycle() -> None:
+    """A runtime streaming started/updated/completed phases per node."""
+    runtime = PhaseAwareMockRuntime(nodes=["planner", "executor"])
+
+    state_events: list[UiPathRuntimeStateEvent] = []
+    result: UiPathRuntimeResult | None = None
+
+    async for event in runtime.stream({}):
+        if isinstance(event, UiPathRuntimeResult):
+            result = event
+        elif isinstance(event, UiPathRuntimeStateEvent):
+            state_events.append(event)
+
+    # 2 nodes x 3 phases = 6 state events
+    assert len(state_events) == 6
+
+    # Verify per-node lifecycle ordering
+    for i, node in enumerate(["planner", "executor"]):
+        group = state_events[i * 3 : i * 3 + 3]
+        assert group[0].node_name == node
+        assert group[0].phase == UiPathRuntimeStatePhase.STARTED
+        assert group[0].payload == {}
+
+        assert group[1].node_name == node
+        assert group[1].phase == UiPathRuntimeStatePhase.UPDATED
+        assert group[1].payload == {"key": f"{node}_value"}
+
+        assert group[2].node_name == node
+        assert group[2].phase == UiPathRuntimeStatePhase.COMPLETED
+        assert group[2].payload == {"key": f"{node}_value"}
+
+    # Final result
+    assert result is not None
+    assert result.status == UiPathRuntimeStatus.SUCCESSFUL
+    assert result.output == {"done": True}
+
+
+@pytest.mark.asyncio
+async def test_runtime_stream_emits_faulted_phase_on_error() -> None:
+    """A node that fails should emit started then faulted, and stop the stream."""
+    runtime = PhaseAwareMockRuntime(
+        nodes=["planner", "executor"], failing_node="executor"
+    )
+
+    state_events: list[UiPathRuntimeStateEvent] = []
+    result: UiPathRuntimeResult | None = None
+
+    async for event in runtime.stream({}):
+        if isinstance(event, UiPathRuntimeResult):
+            result = event
+        elif isinstance(event, UiPathRuntimeStateEvent):
+            state_events.append(event)
+
+    # planner: started, updated, completed (3) + executor: started, faulted (2) = 5
+    assert len(state_events) == 5
+
+    # planner completed normally
+    assert state_events[0].phase == UiPathRuntimeStatePhase.STARTED
+    assert state_events[1].phase == UiPathRuntimeStatePhase.UPDATED
+    assert state_events[2].phase == UiPathRuntimeStatePhase.COMPLETED
+
+    # executor started then faulted
+    assert state_events[3].node_name == "executor"
+    assert state_events[3].phase == UiPathRuntimeStatePhase.STARTED
+    assert state_events[4].node_name == "executor"
+    assert state_events[4].phase == UiPathRuntimeStatePhase.FAULTED
+    assert state_events[4].payload == {"error": "executor failed"}
+
+    # Result is faulted
+    assert result is not None
+    assert result.status == UiPathRuntimeStatus.FAULTED
diff --git a/uv.lock b/uv.lock
index fc5c14a..cf6e941 100644
--- a/uv.lock
+++ b/uv.lock
@@ -1005,7 +1005,7 @@ wheels = [
 
 [[package]]
 name = "uipath-runtime"
-version = "0.8.5"
+version = "0.8.6"
 source = { editable = "." }
 dependencies = [
     { name = "uipath-core" },