The emergence of a charge density wave (CDW) in a Weyl semimetal—a correlated topological phase—is exceptionally rare in condensed matter systems. In this context, the quasi-one-dimensional type-III Weyl semimetal (${\mathrm{TaSe}}_4{)}_2\mathrm{I}$ undergoes a CDW transition at $T_{\text{CDW}}\approx 263\mathrm{K}$, providing an exceptional platform to investigate correlated topological CDW states. Here, we uncover an additional hidden-order phase transition at $T^{*}\sim 100\mathrm{K}$, well below the CDW onset, using low-frequency resistance noise spectroscopy, electrical transport, and thermoelectric measurements. This transition is characterized by a sharp enhancement in the noise exponent ($\alpha$) and variance of resistance fluctuations. Analysis of higher-order statistics of resistance fluctuations reveals the correlated dynamics underlying the transition. A pronounced anomaly in the Seebeck coefficient near $T^{*}$ further suggests a Fermi surface reconstruction. First-principles calculations reveal a structural distortion from the high-symmetry $I422$ phase to a low-symmetry $C2$ phase, via an intermediate $I4$ symmetry. This leads to renormalization of the electronic structure near the Fermi level and opening of a bandgap in the hidden-order phase. These findings demonstrate a previously unidentified correlated phase transition in the topological CDW-Weyl semimetal (${\mathrm{TaSe}}_4{)}_2\mathrm{I}$, enriching the phase diagram of this material and establishing it as an ideal platform for studying intertwined electronic and structural orders.

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• Charge density waves
• Electrical conductivity
• First-principles calculations
• Noise
• Topological materials
• Narrow band gap systems
• Weyl semimetal