diff --git a/src/resources/extensions/gsd/auto-dispatch.ts b/src/resources/extensions/gsd/auto-dispatch.ts
index 18f7aac26..51e5ff4fd 100644
--- a/src/resources/extensions/gsd/auto-dispatch.ts
+++ b/src/resources/extensions/gsd/auto-dispatch.ts
@@ -626,6 +626,25 @@ export const DISPATCH_RULES: DispatchRule[] = [
     match: async ({ state, mid, midTitle, basePath }) => {
       if (state.phase !== "completing-milestone") return null;
 
+      // Safety guard (#2675): block completion when VALIDATION verdict is
+      // needs-remediation. The state machine treats needs-remediation as
+      // terminal (to prevent validate-milestone loops per #832), but
+      // completing-milestone should NOT proceed — remediation work is needed.
+      const validationFile = resolveMilestoneFile(basePath, mid, "VALIDATION");
+      if (validationFile) {
+        const validationContent = await loadFile(validationFile);
+        if (validationContent) {
+          const verdict = extractVerdict(validationContent);
+          if (verdict === "needs-remediation") {
+            return {
+              action: "stop",
+              reason: `Cannot complete milestone ${mid}: VALIDATION verdict is "needs-remediation". Address the remediation findings and re-run validation, or update the verdict manually.`,
+              level: "warning",
+            };
+          }
+        }
+      }
+
       // Safety guard (#1368): verify all roadmap slices have SUMMARY files.
       const missingSlices = findMissingSummaries(basePath, mid);
       if (missingSlices.length > 0) {
diff --git a/src/resources/extensions/gsd/tests/remediation-completion-guard.test.ts b/src/resources/extensions/gsd/tests/remediation-completion-guard.test.ts
new file mode 100644
index 000000000..93a9b55bd
--- /dev/null
+++ b/src/resources/extensions/gsd/tests/remediation-completion-guard.test.ts
@@ -0,0 +1,110 @@
+/**
+ * Regression test for #2675: completing-milestone dispatch rule must
+ * block completion when VALIDATION verdict is "needs-remediation".
+ *
+ * Without this guard, needs-remediation + allSlicesDone causes a loop:
+ * complete-milestone dispatched → agent refuses (correct) → no SUMMARY
+ * → re-dispatch → repeat until stuck detection fires.
+ */
+import { test } from "node:test";
+import assert from "node:assert/strict";
+import { mkdtempSync, mkdirSync, writeFileSync, rmSync } from "node:fs";
+import { join } from "node:path";
+import { tmpdir } from "node:os";
+
+import { DISPATCH_RULES } from "../auto-dispatch.ts";
+
+/** Find the completing-milestone dispatch rule */
+const completingRule = DISPATCH_RULES.find(r => r.name === "completing-milestone → complete-milestone");
+
+test("completing-milestone dispatch rule exists", () => {
+  assert.ok(completingRule, "rule should exist in DISPATCH_RULES");
+});
+
+test("completing-milestone blocks when VALIDATION verdict is needs-remediation (#2675)", async () => {
+  const base = mkdtempSync(join(tmpdir(), "gsd-remediation-"));
+  mkdirSync(join(base, ".gsd", "milestones", "M001"), { recursive: true });
+
+  try {
+    // Write a VALIDATION file with needs-remediation verdict
+    writeFileSync(
+      join(base, ".gsd", "milestones", "M001", "M001-VALIDATION.md"),
+      [
+        "---",
+        "verdict: needs-remediation",
+        "remediation_round: 0",
+        "---",
+        "",
+        "# Validation Report",
+        "",
+        "3 success criteria failed. Remediation required.",
+      ].join("\n"),
+    );
+
+    const ctx = {
+      mid: "M001",
+      midTitle: "Test Milestone",
+      basePath: base,
+      state: { phase: "completing-milestone" } as any,
+      prefs: {} as any,
+      session: undefined,
+    };
+
+    const result = await completingRule!.match(ctx);
+
+    assert.ok(result !== null, "rule should match");
+    assert.equal(result!.action, "stop", "should return stop action");
+    if (result!.action === "stop") {
+      assert.equal(result!.level, "warning", "should be warning level (pausable)");
+      assert.ok(
+        result!.reason.includes("needs-remediation"),
+        "reason should mention needs-remediation",
+      );
+    }
+  } finally {
+    rmSync(base, { recursive: true, force: true });
+  }
+});
+
+test("completing-milestone proceeds normally when VALIDATION verdict is pass (#2675 guard)", async () => {
+  const base = mkdtempSync(join(tmpdir(), "gsd-remediation-"));
+  mkdirSync(join(base, ".gsd", "milestones", "M001"), { recursive: true });
+
+  try {
+    // Write a VALIDATION file with pass verdict
+    writeFileSync(
+      join(base, ".gsd", "milestones", "M001", "M001-VALIDATION.md"),
+      [
+        "---",
+        "verdict: pass",
+        "---",
+        "",
+        "# Validation Report",
+        "",
+        "All criteria met.",
+      ].join("\n"),
+    );
+
+    const ctx = {
+      mid: "M001",
+      midTitle: "Test Milestone",
+      basePath: base,
+      state: { phase: "completing-milestone" } as any,
+      prefs: {} as any,
+      session: undefined,
+    };
+
+    const result = await completingRule!.match(ctx);
+
+    // Should NOT return a stop — should either dispatch or return stop for
+    // a different reason (e.g. missing SUMMARY files, no implementation)
+    if (result && result.action === "stop") {
+      assert.ok(
+        !result.reason.includes("needs-remediation"),
+        "pass verdict should NOT trigger the remediation guard",
+      );
+    }
+  } finally {
+    rmSync(base, { recursive: true, force: true });
+  }
+});