diff --git a/app/assets/javascripts/ci/merge_requests/graphql/subscriptions/ci_pipeline_creation_requests_updated.subscription.graphql b/app/assets/javascripts/ci/merge_requests/graphql/subscriptions/ci_pipeline_creation_requests_updated.subscription.graphql
new file mode 100644
index 0000000000000000000000000000000000000000..3b0e3f49de1fe2495a4c6bde647b1e678caf1302
--- /dev/null
+++ b/app/assets/javascripts/ci/merge_requests/graphql/subscriptions/ci_pipeline_creation_requests_updated.subscription.graphql
@@ -0,0 +1,10 @@
+subscription ciPipelineCreationRequestsUpdated($mergeRequestId: MergeRequestID!) {
+  ciPipelineCreationRequestsUpdated(mergeRequestId: $mergeRequestId) {
+    mergeRequestId
+    pipelineCreationRequests {
+      status
+      pipelineId
+      error
+    }
+  }
+}
diff --git a/app/assets/javascripts/ci/pipeline_details/mixins/pipelines_mixin.js b/app/assets/javascripts/ci/pipeline_details/mixins/pipelines_mixin.js
index 074e5b497590004eb78a0b8ddf9869a4825375a3..7d867c3fafdf9d1bb28adc474816b2fb0c5aaffb 100644
--- a/app/assets/javascripts/ci/pipeline_details/mixins/pipelines_mixin.js
+++ b/app/assets/javascripts/ci/pipeline_details/mixins/pipelines_mixin.js
@@ -144,8 +144,16 @@ export default {
         .then((response) => this.successCallback(response))
         .catch((error) => this.errorCallback(error));
     },
-    setCommonData(pipelines, isUsingAsyncPipelineCreation = false) {
-      this.store.storePipelines(pipelines, isUsingAsyncPipelineCreation);
+    setCommonData(
+      pipelines,
+      isUsingAsyncPipelineCreation = false,
+      pipelineCreationInProgress = false,
+    ) {
+      this.store.storePipelines(
+        pipelines,
+        isUsingAsyncPipelineCreation,
+        pipelineCreationInProgress,
+      );
       this.isLoading = false;
       this.updateGraphDropdown = true;
       this.hasMadeRequest = true;
diff --git a/app/assets/javascripts/ci/pipeline_details/stores/pipelines_store.js b/app/assets/javascripts/ci/pipeline_details/stores/pipelines_store.js
index 96c6448858e395b3c8606d3a4965dba86b8d9631..5de3fae9f4a0b563ae2ba7322ce6b687e7109015 100644
--- a/app/assets/javascripts/ci/pipeline_details/stores/pipelines_store.js
+++ b/app/assets/javascripts/ci/pipeline_details/stores/pipelines_store.js
@@ -12,14 +12,9 @@ export default class PipelinesStore {
     this.state.isRunningMergeRequestPipeline = false;
   }
 
-  storePipelines(pipelines = [], isUsingAsyncPipelineCreation) {
-    if (isUsingAsyncPipelineCreation && pipelines.length) {
-      const firstPipelineFromTable = this.state.pipelines[0];
-      const firstPipelineFromRequest = pipelines[0];
-
-      if (firstPipelineFromTable?.created_at !== firstPipelineFromRequest?.created_at) {
-        this.toggleIsRunningPipeline(false);
-      }
+  storePipelines(pipelines = [], isUsingAsyncPipelineCreation, pipelineCreationInProgress = false) {
+    if (isUsingAsyncPipelineCreation) {
+      this.toggleIsRunningPipeline(pipelineCreationInProgress);
     }
 
     this.state.pipelines = pipelines;
diff --git a/app/assets/javascripts/commit/pipelines/legacy_pipelines_table_wrapper.vue b/app/assets/javascripts/commit/pipelines/legacy_pipelines_table_wrapper.vue
index a975a83c300a6624f76615b14abe589287bb0b74..18c54ba5db5b9260e847f37d67b813d08f41edab 100644
--- a/app/assets/javascripts/commit/pipelines/legacy_pipelines_table_wrapper.vue
+++ b/app/assets/javascripts/commit/pipelines/legacy_pipelines_table_wrapper.vue
@@ -1,5 +1,5 @@
 <script>
-import { GlButton, GlEmptyState, GlLoadingIcon, GlModal, GlLink, GlSprintf } from '@gitlab/ui';
+import { GlButton, GlEmptyState, GlLink, GlLoadingIcon, GlModal, GlSprintf } from '@gitlab/ui';
 import { helpPagePath } from '~/helpers/help_page_helper';
 import { getParameterByName } from '~/lib/utils/url_utility';
 import PipelinesTable from '~/ci/common/pipelines_table.vue';
@@ -9,7 +9,10 @@ import PipelinesMixin from '~/ci/pipeline_details/mixins/pipelines_mixin';
 import PipelinesService from '~/ci/pipelines_page/services/pipelines_service';
 import PipelineStore from '~/ci/pipeline_details/stores/pipelines_store';
 import TablePagination from '~/vue_shared/components/pagination/table_pagination.vue';
-import { s__, __ } from '~/locale';
+import { __, s__ } from '~/locale';
+import { convertToGraphQLId } from '~/graphql_shared/utils';
+import { TYPENAME_MERGE_REQUEST } from '~/graphql_shared/constants';
+import ciPipelineCreationRequestsUpdatedSubscription from '~/ci/merge_requests/graphql/subscriptions/ci_pipeline_creation_requests_updated.subscription.graphql';
 
 export default {
   components: {
@@ -23,6 +26,41 @@ export default {
     TablePagination,
   },
   mixins: [PipelinesMixin],
+  apollo: {
+    $subscribe: {
+      // eslint-disable-next-line @gitlab/vue-no-undef-apollo-properties
+      pipelineCreationRequestsUpdated: {
+        query: ciPipelineCreationRequestsUpdatedSubscription,
+        variables() {
+          return {
+            mergeRequestId: convertToGraphQLId(TYPENAME_MERGE_REQUEST, this.mergeRequestId),
+          };
+        },
+        skip() {
+          return !this.isMergeRequestTable || !this.mergeRequestId;
+        },
+        result({ data }) {
+          // console.log(__('📨 Pipeline creation subscription data received:'), data);
+
+          if (!data?.ciPipelineCreationRequestsUpdated) {
+            // console.log(__('📋 No pipeline creation data in subscription response'));
+          }
+
+          // For debugging, just log the merge request ID (scalar response)
+          // console.log(__('✅ Merge Request ID from subscription:'), data.ciPipelineCreationRequestsUpdated);
+
+          // TODO: When backend returns full object, handle pipelineCreationRequests
+          // if (data.ciPipelineCreationRequestsUpdated.pipelineCreationRequests) {
+          //   this.pipelineCreationRequests = data.ciPipelineCreationRequestsUpdated.pipelineCreationRequests;
+          // }
+        },
+        error() {
+          // console.error(__('❌ Pipeline creation subscription error:'), error);
+          // Gracefully degrade - subscription failure shouldn't break basic functionality
+        },
+      },
+    },
+  },
   props: {
     canCreatePipelineInTargetProject: {
       type: Boolean,
@@ -82,6 +120,7 @@ export default {
       page: getParameterByName('page') || '1',
       requestData: {},
       modalId: 'create-pipeline-for-fork-merge-request-modal',
+      pipelineCreationRequests: [],
     };
   },
 
@@ -122,24 +161,66 @@ export default {
     },
     /**
      * Checks if either `detached_merge_request_pipeline` or
-     * `merge_request_pipeline` are tru in the first
+     * `merge_request_pipeline` are true in the first
      * object in the pipelines array.
      *
      * @returns {Boolean}
      */
     latestPipelineDetachedFlag() {
       const latest = this.state.pipelines[0];
+      // console.log(__('latest pipeline'),latest)
       return (
         latest &&
         latest.flags &&
         (latest.flags.detached_merge_request_pipeline || latest.flags.merge_request_pipeline)
       );
     },
+    isCreatingPipeline() {
+      const result =
+        this.pipelineCreationRequests?.some((request) => request.status === 'in_progress') || false;
+      return result;
+    },
+  },
+  watch: {
+    // Watch for changes in pipeline creation requests
+    pipelineCreationRequests: {
+      handler(newRequests, oldRequests) {
+        this.store.toggleIsRunningPipeline(this.isCreatingPipeline);
+
+        const newFailedRequests = newRequests.filter(
+          (req) =>
+            req.status === 'failed' &&
+            !oldRequests?.some((oldReq) => oldReq.id === req.id && oldReq.status === 'failed'),
+        );
+        newFailedRequests.forEach((request) => {
+          this.$toast.show(`Pipeline creation failed: ${request.error}`);
+        });
+
+        // Refresh pipelines table when creation completes
+        const hasNewlyCompletedRequests = newRequests.some(
+          (req) =>
+            (req.status === 'succeeded' || req.status === 'failed') &&
+            !oldRequests?.some((oldReq) => oldReq.id === req.id && oldReq.status !== 'in_progress'),
+        );
+
+        if (hasNewlyCompletedRequests) {
+          this.updateTable();
+        }
+      },
+      deep: true,
+    },
   },
   created() {
+    // console.log(__('🔄 Component created - MR ID:'), this.mergeRequestId, 'isMergeRequestTable:', this.isMergeRequestTable);
     this.service = new PipelinesService(this.endpoint);
     this.requestData = { page: this.page };
   },
+  mounted() {
+    // console.log(__('🔄 Component mounted - MR ID:'), this.mergeRequestId);
+  },
+  beforeDestroy() {
+    // console.log(__('🔄 Component destroying - MR ID:'), this.mergeRequestId);
+  },
   methods: {
     // eslint-disable-next-line vue/no-unused-properties -- successCallback() is used by the `PipelinesMixin` mixin
     successCallback(resp) {
@@ -147,7 +228,11 @@ export default {
       const pipelines = resp.data.pipelines || resp.data;
 
       this.store.storePagination(resp.headers);
-      this.setCommonData(pipelines, this.isMergeRequestTable);
+      this.setCommonData(
+        pipelines,
+        this.isMergeRequestTable,
+        resp.data.pipeline_creation_in_progress,
+      );
 
       if (resp.headers?.['x-total']) {
         const updatePipelinesEvent = new CustomEvent('update-pipelines-count', {
diff --git a/app/assets/javascripts/vue_shared/components/markdown/markdown_content.vue b/app/assets/javascripts/vue_shared/components/markdown/markdown_content.vue
index b718639aecd64f4a7742dad016bee77ba8445018..a3b5b46c99f756285aeadd6a3eb9d9a13bbcf83c 100644
--- a/app/assets/javascripts/vue_shared/components/markdown/markdown_content.vue
+++ b/app/assets/javascripts/vue_shared/components/markdown/markdown_content.vue
@@ -15,6 +15,11 @@ export default {
       type: String,
       required: true,
     },
+    fallbackOnError: {
+      type: Boolean,
+      required: false,
+      default: false,
+    },
   },
   data() {
     return {
@@ -47,9 +52,13 @@ export default {
 <template>
   <div>
     <gl-skeleton-loader v-if="loading" :width="200" :lines="2" />
-    <gl-alert v-else-if="error" :dismissible="false" variant="danger">
-      {{ __('Failed to format markdown.') }}
-    </gl-alert>
+    <template v-else-if="error">
+      <gl-alert :dismissible="false" variant="danger">
+        <span>{{ __('Failed to format markdown.') }}</span>
+        <span v-if="fallbackOnError">{{ __('Value rendered as plain text.') }}</span>
+      </gl-alert>
+      <div v-if="fallbackOnError" data-testid="raw-value">{{ value }}</div>
+    </template>
     <div v-else-if="markdown" v-safe-html="markdown" data-testid="markdown" class="md"></div>
   </div>
 </template>
diff --git a/app/controllers/projects/merge_requests_controller.rb b/app/controllers/projects/merge_requests_controller.rb
index 197e2b4d326f0ffa21adccd72ccde90a56f7b7b2..114f521e912b0176c11f88a80ed71dcb3220ca35 100644
--- a/app/controllers/projects/merge_requests_controller.rb
+++ b/app/controllers/projects/merge_requests_controller.rb
@@ -176,6 +176,7 @@ def pipelines
           preload_downstream_statuses: false,
           disable_stage_actions: true
         ),
+      pipeline_creation_in_progress: merge_request.pipeline_creating?,
       count: {
         all: @pipelines_count
       }
diff --git a/app/graphql/graphql_triggers.rb b/app/graphql/graphql_triggers.rb
index 6d8b15ea48b2c995a73dbd4097f7cc2296440cf0..99783f055f7bf9d4249bc5b2cb9588cc2dd5804a 100644
--- a/app/graphql/graphql_triggers.rb
+++ b/app/graphql/graphql_triggers.rb
@@ -11,6 +11,11 @@ def self.ci_job_status_updated(job)
     GitlabSchema.subscriptions.trigger(:ci_job_status_updated, { job_id: job.to_gid }, job)
   end
 
+  def self.ci_pipeline_creation_requests_updated(merge_request)
+    GitlabSchema.subscriptions.trigger(:ci_pipeline_creation_requests_updated,
+      { merge_request_id: merge_request.to_gid }, merge_request)
+  end
+
   def self.ci_pipeline_status_updated(pipeline)
     GitlabSchema.subscriptions.trigger(:ci_pipeline_status_updated, { pipeline_id: pipeline.to_gid }, pipeline)
   end
diff --git a/app/graphql/subscriptions/ci/pipeline_creation/requests_updated.rb b/app/graphql/subscriptions/ci/pipeline_creation/requests_updated.rb
new file mode 100644
index 0000000000000000000000000000000000000000..ac67c03505d2d95800c14f8f867a1e38f141a560
--- /dev/null
+++ b/app/graphql/subscriptions/ci/pipeline_creation/requests_updated.rb
@@ -0,0 +1,24 @@
+# frozen_string_literal: true
+
+module Subscriptions
+  module Ci
+    module PipelineCreation
+      class RequestsUpdated < ::Subscriptions::BaseSubscription
+        include Gitlab::Graphql::Laziness
+
+        argument :merge_request_id,
+          Types::GlobalIDType[::MergeRequest],
+          required: true,
+          description: 'ID of the merge request to subscribe to pipeline creation updates for.'
+
+        payload_type Types::MergeRequestType
+
+        def authorized?(merge_request_id:)
+          merge_request = force(GitlabSchema.find_by_gid(merge_request_id))
+
+          unauthorized! unless merge_request && Ability.allowed?(current_user, :read_merge_request, merge_request)
+        end
+      end
+    end
+  end
+end
diff --git a/app/graphql/types/ci/pipeline_creation/requests_updated_payload_type.rb b/app/graphql/types/ci/pipeline_creation/requests_updated_payload_type.rb
new file mode 100644
index 0000000000000000000000000000000000000000..1d8f5e597895731104ae9cc499433c649c63e9f6
--- /dev/null
+++ b/app/graphql/types/ci/pipeline_creation/requests_updated_payload_type.rb
@@ -0,0 +1,19 @@
+# frozen_string_literal: true
+
+module Types
+  module Ci
+    module PipelineCreation
+      class RequestsUpdatedPayloadType < BaseObject
+        graphql_name 'CiPipelineCreationRequestsUpdatedPayload'
+        description 'Payload for pipeline creation requests updated subscription'
+
+        authorize :read_merge_request
+
+        field :merge_request_id, Types::GlobalIDType[::MergeRequest], null: false,
+          description: 'ID of the merge request.'
+        field :pipeline_creation_requests, [Types::Ci::PipelineCreation::RequestType], null: false,
+          description: 'Pipeline creation requests for the merge request.'
+      end
+    end
+  end
+end
diff --git a/app/graphql/types/merge_request_type.rb b/app/graphql/types/merge_request_type.rb
index 11b046b39df4d088fff7e99390578af0e242b95b..305f81579ece63790d637d6862133ac12976b808 100644
--- a/app/graphql/types/merge_request_type.rb
+++ b/app/graphql/types/merge_request_type.rb
@@ -171,6 +171,9 @@ def self.authorization_scopes
 
     field :head_pipeline, Types::Ci::PipelineType, null: true, method: :diff_head_pipeline,
       description: 'Pipeline running on the branch HEAD of the merge request.'
+    field :pipeline_creation_requests, [Types::Ci::PipelineCreation::RequestType],
+      null: false,
+      description: 'Pipeline creation requests for the merge request.'
     field :pipelines,
       null: true,
       description: 'Pipelines for the merge request. Note: for performance reasons, ' \
@@ -413,6 +416,10 @@ def notes_count_for_collection(key)
         end
       end
     end
+
+    def pipeline_creation_requests
+      ::Ci::PipelineCreation::Requests.for_merge_request(object)
+    end
   end
 end
 
diff --git a/app/graphql/types/subscription_type.rb b/app/graphql/types/subscription_type.rb
index bac1ab5ba98ae2d8f6853cfe7183c7f25c061782..5f8ada190bde923b0c2c33c623deb6e255d835a2 100644
--- a/app/graphql/types/subscription_type.rb
+++ b/app/graphql/types/subscription_type.rb
@@ -12,6 +12,10 @@ class SubscriptionType < ::Types::BaseObject
       subscription: Subscriptions::Ci::Jobs::StatusUpdated, null: true,
       description: 'Triggered when a job status is updated.'
 
+    field :ci_pipeline_creation_requests_updated,
+      subscription: Subscriptions::Ci::PipelineCreation::RequestsUpdated, null: true,
+      description: 'Triggered when a pipeline creation request is updated.'
+
     field :ci_pipeline_status_updated,
       subscription: Subscriptions::Ci::Pipelines::StatusUpdated, null: true,
       description: 'Triggered when a pipeline status is updated.',
diff --git a/app/services/merge_requests/create_pipeline_service.rb b/app/services/merge_requests/create_pipeline_service.rb
index ab716a55664b9cee6e29333d6009422b09285e38..13a0b9a852e170796397e6c38540a0fb13ba7da5 100644
--- a/app/services/merge_requests/create_pipeline_service.rb
+++ b/app/services/merge_requests/create_pipeline_service.rb
@@ -19,18 +19,26 @@ def execute_async(merge_request)
         project.id, current_user.id, merge_request.id,
         params.merge(pipeline_creation_request: pipeline_creation_request).deep_stringify_keys
       )
+
+      GraphqlTriggers.ci_pipeline_creation_requests_updated(merge_request)
+
+      pipeline_creation_request['id']
     end
 
     def create_merge_request_pipeline(merge_request)
       project, ref = pipeline_project_and_ref(merge_request)
 
-      Ci::CreatePipelineService.new(project,
+      pipeline = Ci::CreatePipelineService.new(project,
         current_user,
         ref: ref,
         push_options: params[:push_options],
         pipeline_creation_request: params[:pipeline_creation_request],
         gitaly_context: params[:gitaly_context]
       ).execute(:merge_request_event, merge_request: merge_request)
+
+      GraphqlTriggers.ci_pipeline_creation_requests_updated(merge_request)
+
+      pipeline
     end
 
     def can_create_pipeline_for?(merge_request)
diff --git a/doc/api/graphql/reference/_index.md b/doc/api/graphql/reference/_index.md
index 3739be075e7f1c0bac77b0e085e0b4516b9d654b..57894240867cdac707d782af0b2df89f641457e4 100644
--- a/doc/api/graphql/reference/_index.md
+++ b/doc/api/graphql/reference/_index.md
@@ -34037,6 +34037,7 @@ Defines which user roles, users, or groups can merge into a protected branch.
 | <a id="mergerequestmilestone"></a>`milestone` | [`Milestone`](#milestone) | Milestone of the merge request. |
 | <a id="mergerequestname"></a>`name` | [`String`](#string) | Name or title of the object. |
 | <a id="mergerequestparticipants"></a>`participants` | [`MergeRequestParticipantConnection`](#mergerequestparticipantconnection) | Participants in the merge request. This includes the author, assignees, reviewers, and users mentioned in notes. (see [Connections](#connections)) |
+| <a id="mergerequestpipelinecreationrequests"></a>`pipelineCreationRequests` | [`[CiPipelineCreationRequest!]!`](#cipipelinecreationrequest) | Pipeline creation requests for the merge request. |
 | <a id="mergerequestpoliciesoverridingapprovalsettings"></a>`policiesOverridingApprovalSettings` | [`[PolicyApprovalSettingsOverride!]`](#policyapprovalsettingsoverride) | Approval settings that are overridden by the policies for the merge request. |
 | <a id="mergerequestpolicyviolations"></a>`policyViolations` | [`PolicyViolationDetails`](#policyviolationdetails) | Policy violations reported on the merge request. |
 | <a id="mergerequestpreparedat"></a>`preparedAt` | [`Time`](#time) | Timestamp of when the merge request was prepared. |
diff --git a/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_agent_details.vue b/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_agent_details.vue
index 8fdde6a43c7eadbba7c6ec08acc9512217011f52..8ea19bc85aaa075a57a14bca0ef947fe882d3c9f 100644
--- a/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_agent_details.vue
+++ b/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_agent_details.vue
@@ -30,13 +30,17 @@ export default {
     <template v-if="systemPrompt">
       <dt>{{ s__('AICatalog|System prompt') }}</dt>
       <dd>
-        <markdown :value="systemPrompt" />
+        <div class="gl-border gl-mb-5 gl-mt-3 gl-rounded-base gl-bg-subtle gl-p-5">
+          <markdown fallback-on-error :value="systemPrompt" />
+        </div>
       </dd>
     </template>
     <template v-if="userPrompt">
       <dt>{{ s__('AICatalog|User prompt') }}</dt>
       <dd>
-        <markdown :value="userPrompt" />
+        <div class="gl-border gl-mb-5 gl-mt-3 gl-rounded-base gl-bg-subtle gl-p-5">
+          <markdown fallback-on-error :value="userPrompt" />
+        </div>
       </dd>
     </template>
     <template v-if="tools">
diff --git a/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_item_drawer.vue b/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_item_drawer.vue
index 8e34e8077a8c187ea84008af12f7f1e9f97a476a..bc1b955f226f103ba5f7c2a8bfb031cb88c6e060 100644
--- a/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_item_drawer.vue
+++ b/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_item_drawer.vue
@@ -99,7 +99,7 @@ export default {
           <dt>{{ s__('AICatalog|Description') }}</dt>
           <dd>{{ activeItem.description }}</dd>
           <gl-loading-icon v-if="isItemDetailsLoading" size="lg" class="gl-my-5" />
-          <component :is="detailsComponent" :item="activeItem" />
+          <component :is="detailsComponent" :key="activeItem.id" :item="activeItem" />
         </dl>
       </div>
     </template>
diff --git a/ee/spec/frontend/ai/catalog/components/ai_catalog_agent_details_spec.js b/ee/spec/frontend/ai/catalog/components/ai_catalog_agent_details_spec.js
index 5cf2af29d8e9a9d0c591dff84b3fe21f206abaf2..3a84049fe33bd3307cb4e11065ea153047b0aaf0 100644
--- a/ee/spec/frontend/ai/catalog/components/ai_catalog_agent_details_spec.js
+++ b/ee/spec/frontend/ai/catalog/components/ai_catalog_agent_details_spec.js
@@ -35,12 +35,14 @@ describe('AiCatalogAgentDetails', () => {
   });
 
   it('renders system and user prompts and tools', () => {
-    expect(findAllDetails().at(0).findComponent(Markdown).props('value')).toBe(
-      mockAgent.latestVersion.systemPrompt,
-    );
-    expect(findAllDetails().at(1).findComponent(Markdown).props('value')).toBe(
-      mockAgent.latestVersion.userPrompt,
-    );
+    expect(findAllDetails().at(0).findComponent(Markdown).props()).toMatchObject({
+      value: mockAgent.latestVersion.systemPrompt,
+      fallbackOnError: true,
+    });
+    expect(findAllDetails().at(1).findComponent(Markdown).props()).toMatchObject({
+      value: mockAgent.latestVersion.userPrompt,
+      fallbackOnError: true,
+    });
     expect(findAllDetails().at(2).text()).toBe(TOOLS.join(', '));
   });
 });
diff --git a/ee/spec/frontend/ai/catalog/components/ai_catalog_item_drawer_spec.js b/ee/spec/frontend/ai/catalog/components/ai_catalog_item_drawer_spec.js
index 05997e14bb13acdb30aed20d6eedffced78d86d4..6a518967cd25d1e345f86b714a6546e86609f032 100644
--- a/ee/spec/frontend/ai/catalog/components/ai_catalog_item_drawer_spec.js
+++ b/ee/spec/frontend/ai/catalog/components/ai_catalog_item_drawer_spec.js
@@ -7,7 +7,7 @@ import { AI_CATALOG_AGENTS_EDIT_ROUTE } from 'ee/ai/catalog/router/constants';
 
 import { mockAgent, mockFlow } from '../mock_data';
 
-describe('CatalogItemDrawer', () => {
+describe('AiCatalogItemDrawer', () => {
   let wrapper;
 
   const defaultProps = {
diff --git a/lib/api/merge_requests.rb b/lib/api/merge_requests.rb
index 1b1321055e16cce903f71ef5a08b4ff0ad34523e..9ec926223d5d6d53a4a8ede64619c689232a492e 100644
--- a/lib/api/merge_requests.rb
+++ b/lib/api/merge_requests.rb
@@ -655,7 +655,6 @@ def batch_process_mergeability_checks(merge_requests)
           desc: 'Indicates if the merge request pipeline creation should be performed asynchronously. If set to `true`, the pipeline will be created outside of the API request and the endpoint will return an empty response with a `202` status code. When the response is `202`, the creation can still fail outside of this request.'
       end
       post ':id/merge_requests/:merge_request_iid/pipelines', urgency: :low, feature_category: :pipeline_composition do
-        pipeline = nil
         merge_request = find_merge_request_with_access(params[:merge_request_iid])
 
         merge_request_params = { allow_duplicate: true }
@@ -665,20 +664,20 @@ def batch_process_mergeability_checks(merge_requests)
         )
 
         if params[:async]
-          service.execute_async(merge_request)
-        else
-          pipeline = service.execute(merge_request).payload
-        end
+          request_id = service.execute_async(merge_request)
 
-        if params[:async]
           status :accepted
-        elsif pipeline.nil?
-          not_allowed!
-        elsif pipeline.persisted?
-          status :ok
-          present pipeline, with: ::API::Entities::Ci::Pipeline
+          present request_id: request_id
         else
-          render_validation_error!(pipeline)
+          pipeline = service.execute(merge_request).payload
+          if pipeline.nil?
+            not_allowed!
+          elsif pipeline.persisted?
+            status :ok
+            present pipeline, with: ::API::Entities::Ci::Pipeline
+          else
+            render_validation_error!(pipeline)
+          end
         end
       end
 
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index 6a2b56776c771091a1a22e772e79adababc892f7..caff951fe6ea120bd272f0be7cd30e16a6238ed5 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -70992,6 +70992,9 @@ msgstr ""
 msgid "Value field is required."
 msgstr ""
 
+msgid "Value rendered as plain text."
+msgstr ""
+
 msgid "Value stream"
 msgstr ""
 
diff --git a/spec/frontend/vue_shared/components/markdown/markdown_content_spec.js b/spec/frontend/vue_shared/components/markdown/markdown_content_spec.js
index 2def11d956396ab61adb52286365d5c645aacb1c..e8a515f76dc1c015a79736a43059d21ccbfb54b5 100644
--- a/spec/frontend/vue_shared/components/markdown/markdown_content_spec.js
+++ b/spec/frontend/vue_shared/components/markdown/markdown_content_spec.js
@@ -21,10 +21,11 @@ describe('markdown_content.vue', () => {
   let wrapper;
   let mock;
 
-  const createWrapper = () => {
+  const createWrapper = ({ props = {} } = {}) => {
     wrapper = shallowMountExtended(MarkdownContent, {
       propsData: {
         value: MARKDOWN,
+        ...props,
       },
     });
   };
@@ -33,6 +34,7 @@ describe('markdown_content.vue', () => {
 
   const findSkeletonLoader = () => wrapper.findComponent(GlSkeletonLoader);
   const findAlert = () => wrapper.findComponent(GlAlert);
+  const findRawValue = () => wrapper.findByTestId('raw-value');
   const findMarkdown = () => wrapper.findByTestId('markdown');
 
   beforeEach(() => {
@@ -80,16 +82,49 @@ describe('markdown_content.vue', () => {
         .replyOnce(HTTP_STATUS_INTERNAL_SERVER_ERROR, new Error('error'));
     });
 
-    it('shows the error message', async () => {
-      createWrapper();
+    describe('without fallbackOnError prop', () => {
+      beforeEach(() => {
+        createWrapper();
+        return axios.waitForAll();
+      });
 
-      await axios.waitForAll();
-      expect(findSkeletonLoader().exists()).toBe(false);
-      expect(findAlert().props()).toMatchObject({
-        variant: 'danger',
-        dismissible: false,
+      it('shows the error message', () => {
+        expect(findSkeletonLoader().exists()).toBe(false);
+        expect(findAlert().props()).toMatchObject({
+          variant: 'danger',
+          dismissible: false,
+        });
+        expect(findAlert().text()).toBe('Failed to format markdown.');
+      });
+
+      it('does not render the raw markdown value', () => {
+        expect(findRawValue().exists()).toBe(false);
+      });
+    });
+
+    describe('with fallbackOnError prop', () => {
+      beforeEach(() => {
+        createWrapper({
+          props: {
+            fallbackOnError: true,
+          },
+        });
+        return axios.waitForAll();
+      });
+
+      it('shows the error message with fallback text', () => {
+        expect(findSkeletonLoader().exists()).toBe(false);
+        expect(findAlert().props()).toMatchObject({
+          variant: 'danger',
+          dismissible: false,
+        });
+        expect(findAlert().text()).toBe('Failed to format markdown. Value rendered as plain text.');
+      });
+
+      it('renders the raw markdown value as fallback', () => {
+        expect(findRawValue().exists()).toBe(true);
+        expect(findRawValue().text()).toBe(MARKDOWN);
       });
-      expect(findAlert().text()).toBe('Failed to format markdown.');
     });
   });
 });