Disclosed herein is a foam-in-bag dispensing system, including a dispensing apparatus operative to dispense foam precursor, the foam precursor being configured for expanding and solidifying into a polymeric foam, to a dispensing location between first and second web plies extending respectively on first and second sides of the dispensing apparatus; and a bag-status indicator associated for providing an indication to the operator indicative of the readiness of the bag for removal from the device for avoiding premature bag removal.