diff --git a/apps/api/src/api/tool_instances.py b/apps/api/src/api/tool_instances.py
index 859c87f..568e5fe 100644
--- a/apps/api/src/api/tool_instances.py
+++ b/apps/api/src/api/tool_instances.py
@@ -1217,10 +1217,14 @@ async def check_instance_tunnel_health(
         if tunnel_health.get("error"):
             response["error"] = tunnel_health["error"]
 
-    # Overall healthy only if container is running AND tunnel is healthy
+    # Overall healthy: web tools need running container + healthy tunnel;
+    # terminal tools only need running container
     container_healthy = container_info["status"] == "running"
-    tunnel_healthy = response["tunnel_status"] == "healthy"
-    response["healthy"] = container_healthy and tunnel_healthy
+    if instance.url:
+        tunnel_healthy = response["tunnel_status"] == "healthy"
+        response["healthy"] = container_healthy and tunnel_healthy
+    else:
+        response["healthy"] = container_healthy
 
     # If container is not running, override error message
     if not container_healthy: