diff --git a/src/resources/extensions/gsd/auto-timers.ts b/src/resources/extensions/gsd/auto-timers.ts
index 22b70fa54..1a7c4740b 100644
--- a/src/resources/extensions/gsd/auto-timers.ts
+++ b/src/resources/extensions/gsd/auto-timers.ts
@@ -15,6 +15,7 @@ import { computeBudgets, resolveExecutorContextWindow } from "./context-budget.j
 import {
   getInFlightToolCount,
   getOldestInFlightToolStart,
+  clearInFlightTools,
 } from "./auto-tool-tracking.js";
 import { detectWorkingTreeActivity } from "./auto-supervisor.js";
 import { closeoutUnit, type CloseoutOptions } from "./auto-unit-closeout.js";
@@ -146,6 +147,7 @@ export function startUnitSupervision(sctx: SupervisionContext): void {
 
       // Agent has tool calls currently executing — not idle, just waiting.
       // But only suppress recovery if the tool started recently.
+      let stalledToolDetected = false;
       if (getInFlightToolCount() > 0) {
         const oldestStart = getOldestInFlightToolStart()!;
         const toolAgeMs = Date.now() - oldestStart;
@@ -156,6 +158,12 @@ export function startUnitSupervision(sctx: SupervisionContext): void {
           });
           return;
         }
+        // Tool has been in-flight longer than idle timeout — treat as hung.
+        // Clear the stale entries so subsequent ticks don't re-detect them,
+        // and set the flag so the filesystem-activity check below does not
+        // override the stall verdict (#2527).
+        stalledToolDetected = true;
+        clearInFlightTools();
         ctx.ui.notify(
           `Stalled tool detected: a tool has been in-flight for ${Math.round(toolAgeMs / 60000)}min. Treating as hung — attempting idle recovery.`,
           "warning",
@@ -163,7 +171,9 @@ export function startUnitSupervision(sctx: SupervisionContext): void {
       }
 
       // Check if the agent is producing work on disk.
-      if (detectWorkingTreeActivity(s.basePath)) {
+      // Skip this when a stalled tool was just detected — filesystem changes
+      // from earlier in the task should not override the stall verdict (#2527).
+      if (!stalledToolDetected && detectWorkingTreeActivity(s.basePath)) {
         writeUnitRuntimeRecord(s.basePath, unitType, unitId, s.currentUnit.startedAt, {
           lastProgressAt: Date.now(),
           lastProgressKind: "filesystem-activity",
@@ -180,6 +190,10 @@ export function startUnitSupervision(sctx: SupervisionContext): void {
       const recovery = await recoverTimedOutUnit(ctx, pi, unitType, unitId, "idle", buildRecoveryContext());
       if (recovery === "recovered") return;
 
+      // Guard: recoverTimedOutUnit is async — pauseAuto/stopAuto may have
+      // set s.currentUnit = null during the await (#2527).
+      if (!s.currentUnit) return;
+
       writeUnitRuntimeRecord(s.basePath, unitType, unitId, s.currentUnit.startedAt, {
         phase: "paused",
       });
diff --git a/src/resources/extensions/gsd/tests/idle-watchdog-stall-override.test.ts b/src/resources/extensions/gsd/tests/idle-watchdog-stall-override.test.ts
new file mode 100644
index 000000000..34720c9d1
--- /dev/null
+++ b/src/resources/extensions/gsd/tests/idle-watchdog-stall-override.test.ts
@@ -0,0 +1,125 @@
+/**
+ * Regression tests for #2527: idle watchdog stalled-tool detection.
+ *
+ * Bug 1: When a tool is stalled longer than idle_timeout, the watchdog
+ * notifies but falls through to detectWorkingTreeActivity(), which
+ * resets lastProgressAt if files were modified earlier. Recovery is
+ * never called — the session burns tokens indefinitely.
+ *
+ * Bug 2: After async recoverTimedOutUnit(), pauseAuto/stopAuto may set
+ * s.currentUnit = null, but the next line accesses .startedAt — crash.
+ *
+ * These tests verify the auto-timers.ts source contains the structural
+ * fixes: the stalledToolDetected flag, clearInFlightTools() call, the
+ * filesystem-check guard, and the null guard after recovery.
+ */
+
+import { readFileSync } from "node:fs";
+import { join } from "node:path";
+import { test, describe } from "node:test";
+import assert from "node:assert/strict";
+
+const TIMERS_SRC = readFileSync(
+  join(import.meta.dirname, "..", "auto-timers.ts"),
+  "utf-8",
+);
+
+// ═══ Bug 1: stalledToolDetected flag prevents filesystem-activity override ═══
+
+describe("#2527 Bug 1: stalled tool should not be overridden by filesystem activity", () => {
+  test("auto-timers.ts imports clearInFlightTools", () => {
+    assert.ok(
+      TIMERS_SRC.includes("clearInFlightTools"),
+      "clearInFlightTools must be imported from auto-tool-tracking",
+    );
+  });
+
+  test("auto-timers.ts declares stalledToolDetected flag", () => {
+    assert.ok(
+      TIMERS_SRC.includes("stalledToolDetected"),
+      "stalledToolDetected flag must exist in idle watchdog",
+    );
+  });
+
+  test("stalled tool sets flag to true", () => {
+    // The flag must be set before the filesystem check
+    const flagSet = TIMERS_SRC.indexOf("stalledToolDetected = true");
+    assert.ok(flagSet > -1, "stalledToolDetected must be set to true when tool is stalled");
+
+    const notify = TIMERS_SRC.indexOf("Stalled tool detected:");
+    assert.ok(flagSet < notify, "flag must be set before the stall notification");
+  });
+
+  test("stalled tool calls clearInFlightTools", () => {
+    // clearInFlightTools() must be called when tool is stalled, so subsequent
+    // watchdog ticks don't re-detect the same stale entries
+    const clearCall = TIMERS_SRC.indexOf("clearInFlightTools()");
+    assert.ok(clearCall > -1, "clearInFlightTools() must be called when tool is stalled");
+
+    const flagSet = TIMERS_SRC.indexOf("stalledToolDetected = true");
+    assert.ok(
+      Math.abs(clearCall - flagSet) < 200,
+      "clearInFlightTools() should be near stalledToolDetected = true",
+    );
+  });
+
+  test("filesystem-activity check is guarded by stalledToolDetected", () => {
+    // The detectWorkingTreeActivity check must be skipped when stalledToolDetected is true
+    assert.ok(
+      TIMERS_SRC.includes("!stalledToolDetected && detectWorkingTreeActivity"),
+      "detectWorkingTreeActivity must be guarded by !stalledToolDetected",
+    );
+  });
+
+  test("control flow: stalled tool → skip filesystem check → reach recovery", () => {
+    // Verify the structural ordering: flag declaration → stall block → guarded fs check → recovery
+    const flagDecl = TIMERS_SRC.indexOf("let stalledToolDetected = false");
+    const stallBlock = TIMERS_SRC.indexOf("stalledToolDetected = true");
+    const fsGuard = TIMERS_SRC.indexOf("!stalledToolDetected && detectWorkingTreeActivity");
+    const recovery = TIMERS_SRC.indexOf("recoverTimedOutUnit(ctx, pi, unitType, unitId, \"idle\"");
+
+    assert.ok(flagDecl > -1, "flag declaration must exist");
+    assert.ok(flagDecl < stallBlock, "flag declared before stall block");
+    assert.ok(stallBlock < fsGuard, "stall block before filesystem guard");
+    assert.ok(fsGuard < recovery, "filesystem guard before recovery call");
+  });
+});
+
+// ═══ Bug 2: null guard after async recoverTimedOutUnit ═══════════════════════
+
+describe("#2527 Bug 2: null guard after async recovery prevents crash", () => {
+  test("idle watchdog has null guard after recoverTimedOutUnit", () => {
+    // Find the idle recovery call
+    const idleRecovery = TIMERS_SRC.indexOf(
+      'recoverTimedOutUnit(ctx, pi, unitType, unitId, "idle"',
+    );
+    assert.ok(idleRecovery > -1, "idle recovery call must exist");
+
+    // The null guard must appear between the recovery call and the next
+    // writeUnitRuntimeRecord that accesses s.currentUnit.startedAt
+    const afterRecovery = TIMERS_SRC.slice(idleRecovery, idleRecovery + 400);
+    assert.ok(
+      afterRecovery.includes("if (!s.currentUnit) return"),
+      "null guard for s.currentUnit must exist after idle recoverTimedOutUnit",
+    );
+  });
+
+  test("null guard is between recovery and writeUnitRuntimeRecord", () => {
+    const idleRecovery = TIMERS_SRC.indexOf(
+      'recoverTimedOutUnit(ctx, pi, unitType, unitId, "idle"',
+    );
+    const afterRecovery = TIMERS_SRC.slice(idleRecovery);
+
+    const recoveredReturn = afterRecovery.indexOf('if (recovery === "recovered") return');
+    const nullGuard = afterRecovery.indexOf("if (!s.currentUnit) return");
+    const writeRecord = afterRecovery.indexOf("writeUnitRuntimeRecord(s.basePath");
+
+    assert.ok(recoveredReturn > -1, "recovered return must exist");
+    assert.ok(nullGuard > -1, "null guard must exist");
+    assert.ok(writeRecord > -1, "writeUnitRuntimeRecord must exist after recovery");
+    assert.ok(
+      recoveredReturn < nullGuard && nullGuard < writeRecord,
+      "order must be: recovered-return → null-guard → writeUnitRuntimeRecord",
+    );
+  });
+});