diff --git a/client/audio_capture.py b/client/audio_capture.py
index 5817b4a..bbae094 100644
--- a/client/audio_capture.py
+++ b/client/audio_capture.py
@@ -15,6 +15,7 @@ class AudioCapture:
         self,
         sample_rate: int = 16000,
         chunk_duration: float = 3.0,
+        overlap_duration: float = 0.5,
         device: Optional[int] = None
     ):
         """
@@ -23,12 +24,15 @@ class AudioCapture:
         Args:
             sample_rate: Target audio sample rate in Hz (16000 for Whisper)
             chunk_duration: Duration of each audio chunk in seconds
+            overlap_duration: Duration of overlap between chunks in seconds (prevents word cutoff)
             device: Input device index, or None for default
         """
         self.target_sample_rate = sample_rate
         self.chunk_duration = chunk_duration
+        self.overlap_duration = overlap_duration
         self.device = device
         self.chunk_size = int(sample_rate * chunk_duration)
+        self.overlap_size = int(sample_rate * overlap_duration)
 
         # Hardware sample rate (will be auto-detected)
         self.hardware_sample_rate = None
@@ -156,8 +160,10 @@ class AudioCapture:
             """Recording loop that runs in a separate thread."""
             buffer = np.array([], dtype=np.float32)
 
-            # Calculate hardware chunk size
+            # Calculate hardware chunk and overlap sizes
             hardware_chunk_size = int(self.hardware_sample_rate * self.chunk_duration)
+            hardware_overlap_size = int(self.hardware_sample_rate * self.overlap_duration)
+            hardware_stride = hardware_chunk_size - hardware_overlap_size
 
             try:
                 with sd.InputStream(
@@ -177,7 +183,10 @@ class AudioCapture:
                             if len(buffer) >= hardware_chunk_size:
                                 # Extract chunk
                                 chunk = buffer[:hardware_chunk_size]
-                                buffer = buffer[hardware_chunk_size:]
+
+                                # Move buffer forward by stride (not full chunk size)
+                                # This creates overlap between consecutive chunks
+                                buffer = buffer[hardware_stride:]
 
                                 # Resample to target rate if needed
                                 if self.hardware_sample_rate != self.target_sample_rate:
diff --git a/config/default_config.yaml b/config/default_config.yaml
index 31733e9..95767c2 100644
--- a/config/default_config.yaml
+++ b/config/default_config.yaml
@@ -6,6 +6,7 @@ audio:
   input_device: "default"
   sample_rate: 16000
   chunk_duration: 3.0
+  overlap_duration: 0.5  # Overlap between chunks to prevent word cutoff (seconds)
 
 noise_suppression:
   enabled: true
diff --git a/gui/main_window_qt.py b/gui/main_window_qt.py
index 06463c0..adec397 100644
--- a/gui/main_window_qt.py
+++ b/gui/main_window_qt.py
@@ -278,6 +278,7 @@ class MainWindow(QMainWindow):
             self.audio_capture = AudioCapture(
                 sample_rate=self.config.get('audio.sample_rate', 16000),
                 chunk_duration=self.config.get('audio.chunk_duration', 3.0),
+                overlap_duration=self.config.get('audio.overlap_duration', 0.5),
                 device=audio_device
             )
 
@@ -296,7 +297,7 @@ class MainWindow(QMainWindow):
             self.is_transcribing = True
             self.start_button.setText("⏸ Stop Transcription")
             self.start_button.setStyleSheet("background-color: #e74c3c; color: white;")
-            self.status_label.setText("🔴 Recording...")
+            self.status_label.setText("🔴 Transcribing...")
 
         except Exception as e:
             QMessageBox.critical(self, "Error", f"Failed to start transcription:\n{e}")
diff --git a/main_cli.py b/main_cli.py
index 299d067..f871992 100755
--- a/main_cli.py
+++ b/main_cli.py
@@ -92,6 +92,7 @@ class TranscriptionCLI:
         self.audio_capture = AudioCapture(
             sample_rate=self.config.get('audio.sample_rate', 16000),
             chunk_duration=self.config.get('audio.chunk_duration', 3.0),
+            overlap_duration=self.config.get('audio.overlap_duration', 0.5),
             device=audio_device
         )