diff --git a/frontend/src/components/tools/shared/ToolStep.tsx b/frontend/src/components/tools/shared/ToolStep.tsx
index 2bbd508c4..bda493e88 100644
--- a/frontend/src/components/tools/shared/ToolStep.tsx
+++ b/frontend/src/components/tools/shared/ToolStep.tsx
@@ -9,6 +9,7 @@ import { createReviewToolStep, ReviewToolStepProps } from './ReviewToolStep';
 
 interface ToolStepContextType {
   visibleStepCount: number;
+  forceStepNumbers?: boolean;
 }
 
 const ToolStepContext = createContext<ToolStepContextType | null>(null);
@@ -82,10 +83,11 @@ const ToolStep = ({
 
   const parent = useContext(ToolStepContext);
 
-  // Auto-detect if we should show numbers based on sibling count
+  // Auto-detect if we should show numbers based on sibling count or force option
   const shouldShowNumber = useMemo(() => {
-    if (showNumber !== undefined) return showNumber;
-    return parent ? parent.visibleStepCount >= 3 : false;
+    if (showNumber !== undefined) return showNumber; // Individual step override
+    if (parent?.forceStepNumbers) return true; // Flow-level force
+    return parent ? parent.visibleStepCount >= 3 : false; // Auto-detect
   }, [showNumber, parent]);
 
   const stepNumber = _stepNumber;
@@ -196,7 +198,7 @@ export function createToolSteps() {
 }
 
 // Context provider wrapper for tools using the factory
-export function ToolStepProvider({ children }: { children: React.ReactNode }) {
+export function ToolStepProvider({ children, forceStepNumbers }: { children: React.ReactNode; forceStepNumbers?: boolean }) {
   // Count visible steps from children that are ToolStep elements
   const visibleStepCount = useMemo(() => {
     let count = 0;
@@ -212,8 +214,9 @@ export function ToolStepProvider({ children }: { children: React.ReactNode }) {
   }, [children]);
 
   const contextValue = useMemo(() => ({
-    visibleStepCount
-  }), [visibleStepCount]);
+    visibleStepCount,
+    forceStepNumbers
+  }), [visibleStepCount, forceStepNumbers]);
 
   return (
     <ToolStepContext.Provider value={contextValue}>
diff --git a/frontend/src/components/tools/shared/createToolFlow.tsx b/frontend/src/components/tools/shared/createToolFlow.tsx
index 76f53cfe2..3cb46ed60 100644
--- a/frontend/src/components/tools/shared/createToolFlow.tsx
+++ b/frontend/src/components/tools/shared/createToolFlow.tsx
@@ -49,6 +49,7 @@ export interface ToolFlowConfig {
   steps: MiddleStepConfig[];
   executeButton?: ExecuteButtonConfig;
   review: ReviewStepConfig;
+  forceStepNumbers?: boolean;
 }
 
 /**
@@ -60,7 +61,7 @@ export function createToolFlow(config: ToolFlowConfig) {
 
   return (
     <Stack gap="sm" p="sm" h="95vh" w="100%" style={{ overflow: 'auto' }}>
-      <ToolStepProvider>
+      <ToolStepProvider forceStepNumbers={config.forceStepNumbers}>
         {/* Files Step */}
         {steps.createFilesStep({
           selectedFiles: config.files.selectedFiles,
diff --git a/frontend/src/tools/AddWatermark.tsx b/frontend/src/tools/AddWatermark.tsx
index 57cff6f59..ad0b55a37 100644
--- a/frontend/src/tools/AddWatermark.tsx
+++ b/frontend/src/tools/AddWatermark.tsx
@@ -14,8 +14,15 @@ import WatermarkFormatting from "../components/tools/addWatermark/WatermarkForma
 
 import { useAddWatermarkParameters } from "../hooks/tools/addWatermark/useAddWatermarkParameters";
 import { useAddWatermarkOperation } from "../hooks/tools/addWatermark/useAddWatermarkOperation";
-import { useWatermarkTypeTips, useWatermarkWordingTips, useWatermarkTextStyleTips, useWatermarkFileTips, useWatermarkFormattingTips } from "../components/tooltips/useWatermarkTips";
+import {
+  useWatermarkTypeTips,
+  useWatermarkWordingTips,
+  useWatermarkTextStyleTips,
+  useWatermarkFileTips,
+  useWatermarkFormattingTips,
+} from "../components/tooltips/useWatermarkTips";
 import { BaseToolProps } from "../types/tool";
+import { isVisible } from "@testing-library/user-event/dist/utils";
 
 const AddWatermark = ({ onPreviewFile, onComplete, onError }: BaseToolProps) => {
   const { t } = useTranslation();
@@ -24,7 +31,7 @@ const AddWatermark = ({ onPreviewFile, onComplete, onError }: BaseToolProps) =>
 
   const [collapsedType, setCollapsedType] = useState(false);
   const [collapsedStyle, setCollapsedStyle] = useState(true);
-  const [collapsedAdvanced, setCollapsedAdvanced] = useState(true);
+  const [collapsedFormatting, setCollapsedFormatting] = useState(true);
 
   const watermarkParams = useAddWatermarkParameters();
   const watermarkOperation = useAddWatermarkOperation();
@@ -80,36 +87,28 @@ const AddWatermark = ({ onPreviewFile, onComplete, onError }: BaseToolProps) =>
 
   // Step completion logic
   const typeStepCompleted = hasFiles && !!watermarkParams.parameters.watermarkType;
-  const textWordingCompleted = typeStepCompleted &&
-    watermarkParams.parameters.watermarkType === 'text' &&
-    watermarkParams.parameters.watermarkText.trim().length > 0;
-  const imageFileCompleted = typeStepCompleted &&
-    watermarkParams.parameters.watermarkType === 'image' &&
-    watermarkParams.parameters.watermarkImage !== undefined;
 
   // Dynamic step structure based on watermark type
   const getSteps = () => {
     const steps = [];
 
-    // Step 1: Watermark Type (always visible after files)
-    if (hasFiles) {
-      steps.push({
-        title: t("watermark.steps.type", "Watermark Type"),
-        isCollapsed: hasResults ? true : collapsedType,
-        onCollapsedClick: hasResults ? handleSettingsReset : () => setCollapsedType(!collapsedType),
-        tooltip: watermarkTypeTips,
-        content: (
-          <WatermarkTypeSettings
-            watermarkType={watermarkParams.parameters.watermarkType}
-            onWatermarkTypeChange={(type) => watermarkParams.updateParameter('watermarkType', type)}
-            disabled={endpointLoading}
-          />
-        ),
-      });
-    }
+    steps.push({
+      title: t("watermark.steps.type", "Watermark Type"),
+      isCollapsed: hasResults ? true : collapsedType,
+      isVisible: hasFiles || hasResults,
+      onCollapsedClick: hasResults ? handleSettingsReset : () => setCollapsedType(!collapsedType),
+      tooltip: watermarkTypeTips,
+      content: (
+        <WatermarkTypeSettings
+          watermarkType={watermarkParams.parameters.watermarkType}
+          onWatermarkTypeChange={(type) => watermarkParams.updateParameter("watermarkType", type)}
+          disabled={endpointLoading}
+        />
+      ),
+    });
 
     // Text watermark path
-    if (watermarkParams.parameters.watermarkType === 'text') {
+    if (watermarkParams.parameters.watermarkType === "text") {
       // Step 2: Wording
       steps.push({
         title: t("watermark.steps.wording", "Wording"),
@@ -142,8 +141,8 @@ const AddWatermark = ({ onPreviewFile, onComplete, onError }: BaseToolProps) =>
       // Step 4: Formatting
       steps.push({
         title: t("watermark.steps.formatting", "Formatting"),
-        isCollapsed: hasResults ? true : collapsedAdvanced,
-        onCollapsedClick: hasResults ? handleSettingsReset : () => setCollapsedAdvanced(!collapsedAdvanced),
+        isCollapsed: hasResults ? true : collapsedFormatting,
+        onCollapsedClick: hasResults ? handleSettingsReset : () => setCollapsedFormatting(!collapsedFormatting),
         tooltip: watermarkFormattingTips,
         content: (
           <WatermarkFormatting
@@ -156,7 +155,7 @@ const AddWatermark = ({ onPreviewFile, onComplete, onError }: BaseToolProps) =>
     }
 
     // Image watermark path
-    if (watermarkParams.parameters.watermarkType === 'image') {
+    if (watermarkParams.parameters.watermarkType === "image") {
       // Step 2: Watermark File
       steps.push({
         title: t("watermark.steps.file", "Watermark File"),
@@ -174,8 +173,8 @@ const AddWatermark = ({ onPreviewFile, onComplete, onError }: BaseToolProps) =>
       // Step 3: Formatting
       steps.push({
         title: t("watermark.steps.formatting", "Formatting"),
-        isCollapsed: hasResults ? true : collapsedAdvanced,
-        onCollapsedClick: hasResults ? handleSettingsReset : () => setCollapsedAdvanced(!collapsedAdvanced),
+        isCollapsed: hasResults ? true : collapsedFormatting,
+        onCollapsedClick: hasResults ? handleSettingsReset : () => setCollapsedFormatting(!collapsedFormatting),
         tooltip: watermarkFormattingTips,
         content: (
           <WatermarkFormatting
@@ -209,7 +208,8 @@ const AddWatermark = ({ onPreviewFile, onComplete, onError }: BaseToolProps) =>
       title: t("watermark.results.title", "Watermark Results"),
       onFileClick: handleThumbnailClick,
     },
+    forceStepNumbers: true,
   });
-}
+};
 
 export default AddWatermark;