diff --git a/src/headless-events.ts b/src/headless-events.ts
index 76d684424..446996257 100644
--- a/src/headless-events.ts
+++ b/src/headless-events.ts
@@ -117,16 +117,30 @@ export function isTerminalNotification(
 	return TERMINAL_PREFIXES.some((prefix) => message.startsWith(prefix));
 }
 
+export function isPauseNotification(event: Record<string, unknown>): boolean {
+	if (event.type !== "extension_ui_request" || event.method !== "notify")
+		return false;
+	const message = String(event.message ?? "").toLowerCase();
+	return (
+		message.startsWith("auto-mode paused") ||
+		message.startsWith("step-mode paused")
+	);
+}
+
+export function isAutoResumeScheduledNotification(
+	event: Record<string, unknown>,
+): boolean {
+	if (event.type !== "extension_ui_request" || event.method !== "notify")
+		return false;
+	return /auto-resuming in \d+s/i.test(String(event.message ?? ""));
+}
+
 export function isBlockedNotification(event: Record<string, unknown>): boolean {
 	if (event.type !== "extension_ui_request" || event.method !== "notify")
 		return false;
 	const message = String(event.message ?? "").toLowerCase();
 	// Blocked notifications come through stopAuto as "Auto-mode stopped (Blocked: ...)"
-	return (
-		message.includes("blocked:") ||
-		message.startsWith("auto-mode paused") ||
-		message.startsWith("step-mode paused")
-	);
+	return message.includes("blocked:") || isPauseNotification(event);
 }
 
 export function isMilestoneReadyNotification(
diff --git a/src/headless.ts b/src/headless.ts
index e728bdc39..1d42b0a4a 100644
--- a/src/headless.ts
+++ b/src/headless.ts
@@ -30,12 +30,14 @@ import {
 	EXIT_SUCCESS,
 	FIRE_AND_FORGET_METHODS,
 	IDLE_TIMEOUT_MS,
-	MULTI_TURN_DEADLOCK_BACKSTOP_MS,
+	isAutoResumeScheduledNotification,
 	isBlockedNotification,
 	isInteractiveHeadlessTool,
 	isMilestoneReadyNotification,
+	isPauseNotification,
 	isQuickCommand,
 	isTerminalNotification,
+	MULTI_TURN_DEADLOCK_BACKSTOP_MS,
 	mapStatusToExitCode,
 	NEW_MILESTONE_IDLE_TIMEOUT_MS,
 	shouldArmHeadlessIdleTimeout,
@@ -554,6 +556,7 @@ async function runHeadlessOnce(
 	let completed = false;
 	let exitCode = 0;
 	let milestoneReady = false; // tracks "Milestone X ready." for auto-chaining
+	let providerAutoResumePending = false;
 	const recentEvents: TrackedEvent[] = [];
 	let lastVisibleProgressAt = Date.now();
 	const interactiveToolCallIds = new Set<string>();
@@ -1100,8 +1103,15 @@ async function runHeadlessOnce(
 
 		// Handle extension_ui_request
 		if (eventObj.type === "extension_ui_request" && clientStarted) {
+			const waitForProviderAutoResume =
+				providerAutoResumePending && isPauseNotification(eventObj);
+
+			if (isAutoResumeScheduledNotification(eventObj)) {
+				providerAutoResumePending = true;
+			}
+
 			// Check for terminal notification before auto-responding
-			if (isBlockedNotification(eventObj)) {
+			if (isBlockedNotification(eventObj) && !waitForProviderAutoResume) {
 				blocked = true;
 			}
 
@@ -1110,13 +1120,20 @@ async function runHeadlessOnce(
 				milestoneReady = true;
 			}
 
-			if (isTerminalNotification(eventObj)) {
+			if (isTerminalNotification(eventObj) && !waitForProviderAutoResume) {
 				completed = true;
 			}
 
 			// Structured trace: handle unit start/end notify messages
 			if (eventObj.method === "notify") {
 				const message = String(eventObj.message ?? "");
+				if (
+					message.includes("Auto-mode resumed") ||
+					message.includes("Step-mode resumed") ||
+					(message.includes("[unit]") && message.includes("starting"))
+				) {
+					providerAutoResumePending = false;
+				}
 				if (traceActive) {
 					if (message.includes("[unit]") && message.includes("starting")) {
 						handleUnitStart(message);
diff --git a/src/tests/headless-events.test.ts b/src/tests/headless-events.test.ts
index 6c5746927..0ba0f77ca 100644
--- a/src/tests/headless-events.test.ts
+++ b/src/tests/headless-events.test.ts
@@ -194,8 +194,10 @@ import {
 	EXIT_CANCELLED,
 	EXIT_ERROR,
 	EXIT_SUCCESS,
+	isAutoResumeScheduledNotification,
 	isBlockedNotification,
 	isInteractiveHeadlessTool,
+	isPauseNotification,
 	isTerminalNotification,
 	mapStatusToExitCode,
 	shouldArmHeadlessIdleTimeout,
@@ -271,6 +273,44 @@ test("isBlockedNotification: auto pause exits as blocked", () => {
 	);
 });
 
+test("isAutoResumeScheduledNotification detects provider auto-resume notices", () => {
+	assert.equal(
+		isAutoResumeScheduledNotification({
+			type: "extension_ui_request",
+			method: "notify",
+			message: "Rate limited: rate limit exceeded. Auto-resuming in 60s...",
+		}),
+		true,
+	);
+	assert.equal(
+		isAutoResumeScheduledNotification({
+			type: "extension_ui_request",
+			method: "notify",
+			message: "Auto-mode paused (Escape). Type to interact.",
+		}),
+		false,
+	);
+});
+
+test("isPauseNotification detects pause banners separately from auto-resume notices", () => {
+	assert.equal(
+		isPauseNotification({
+			type: "extension_ui_request",
+			method: "notify",
+			message: "Auto-mode paused (Escape). Type to interact.",
+		}),
+		true,
+	);
+	assert.equal(
+		isPauseNotification({
+			type: "extension_ui_request",
+			method: "notify",
+			message: "Rate limited: rate limit exceeded. Auto-resuming in 60s...",
+		}),
+		false,
+	);
+});
+
 test("shouldArmHeadlessIdleTimeout: arms after tool calls when no interactive tool is in flight", () => {
 	assert.equal(shouldArmHeadlessIdleTimeout(1, 0), true);
 	assert.equal(shouldArmHeadlessIdleTimeout(3, 0), true);