diff --git a/src/extraction/index.ts b/src/extraction/index.ts
index 4b40931..dcdce33 100644
--- a/src/extraction/index.ts
+++ b/src/extraction/index.ts
@@ -51,7 +51,7 @@ const WORKER_RECYCLE_INTERVAL = 250;
  * Progress callback for indexing operations
  */
 export interface IndexProgress {
-  phase: 'scanning' | 'parsing' | 'storing' | 'finalizing' | 'resolving';
+  phase: 'scanning' | 'parsing' | 'storing' | 'resolving';
   current: number;
   total: number;
   currentFile?: string;
@@ -852,15 +852,6 @@ export class ExtractionOrchestrator {
       (parseWorker as import('worker_threads').Worker).terminate().catch(() => {});
     }
 
-    // Phase 3: Resolve references
-    onProgress?.({
-      phase: 'resolving',
-      current: 0,
-      total: 1,
-    });
-
-    // TODO: Implement reference resolution in Phase 3
-
     return {
       success: filesIndexed > 0 || errors.filter((e) => e.severity === 'error').length === 0,
       filesIndexed,
diff --git a/src/index.ts b/src/index.ts
index 92af4e8..778af86 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -390,16 +390,6 @@ export class CodeGraph {
 
         // Resolve references to create call/import/extends edges
         if (result.success && result.filesIndexed > 0) {
-          // Signal transition so progress bar doesn't hang at "Parsing 100%"
-          options.onProgress?.({
-            phase: 'finalizing',
-            current: 0,
-            total: 0,
-          });
-
-          // Yield so shimmer worker can flush the phase transition to stdout
-          await new Promise(resolve => setImmediate(resolve));
-
           // Get count without loading all refs into memory
           const unresolvedCount = this.queries.getUnresolvedReferencesCount();
 
diff --git a/src/ui/shimmer-progress.ts b/src/ui/shimmer-progress.ts
index 9d2191c..2535902 100644
--- a/src/ui/shimmer-progress.ts
+++ b/src/ui/shimmer-progress.ts
@@ -5,7 +5,6 @@ const PHASE_NAMES: Record<string, string> = {
   scanning: 'Scanning files',
   parsing: 'Parsing code',
   storing: 'Storing data',
-  finalizing: 'Finalizing',
   resolving: 'Resolving refs',
 };