diff --git a/src/resources/extensions/gsd/doctor-proactive.ts b/src/resources/extensions/gsd/doctor-proactive.ts
index 810cd46aa..29fabd288 100644
--- a/src/resources/extensions/gsd/doctor-proactive.ts
+++ b/src/resources/extensions/gsd/doctor-proactive.ts
@@ -173,14 +173,19 @@ export async function preDispatchHealthGate(basePath: string): Promise<PreDispat
   }
 
   // ── STATE.md existence check ──
-  // If STATE.md is missing, rebuild it now so the next unit has accurate
-  // context. Non-blocking — if the rebuild throws, dispatch continues anyway.
+  // If STATE.md is missing, attempt to rebuild it for the next unit's context.
+  // Non-blocking — fresh worktrees won't have it until the first unit completes (#889).
   try {
     const stateFile = resolveGsdRootFile(basePath, "STATE");
     const milestonesDir = join(gsdRoot(basePath), "milestones");
     if (existsSync(milestonesDir) && !existsSync(stateFile)) {
-      await rebuildState(basePath);
-      fixesApplied.push("rebuilt missing STATE.md before dispatch");
+      try {
+        await rebuildState(basePath);
+        fixesApplied.push("rebuilt missing STATE.md before dispatch");
+      } catch {
+        // Rebuild failed — non-blocking, dispatch continues
+        fixesApplied.push("STATE.md missing — will rebuild after first unit completes");
+      }
     }
   } catch {
     // Non-fatal — dispatch continues without STATE.md if rebuild fails
diff --git a/src/resources/extensions/gsd/tests/doctor-proactive.test.ts b/src/resources/extensions/gsd/tests/doctor-proactive.test.ts
index 4e4d86bb8..0bbbf2a83 100644
--- a/src/resources/extensions/gsd/tests/doctor-proactive.test.ts
+++ b/src/resources/extensions/gsd/tests/doctor-proactive.test.ts
@@ -193,6 +193,20 @@ async function main(): Promise<void> {
       assertEq(result.issues.length, 0, "no issues on clean state");
     }
 
+    console.log("\n=== health gate: missing STATE.md does NOT block dispatch (#889) ===");
+    {
+      const dir = realpathSync(mkdtempSync(join(tmpdir(), "doc-proactive-")));
+      cleanups.push(dir);
+      // Create milestones dir but no STATE.md — mimics fresh worktree
+      mkdirSync(join(dir, ".gsd", "milestones", "M001"), { recursive: true });
+      writeFileSync(join(dir, ".gsd", "milestones", "M001", "M001-ROADMAP.md"), "# Roadmap\n");
+
+      const result = await preDispatchHealthGate(dir);
+      assertTrue(result.proceed, "gate must NOT block when STATE.md is missing (deadlock #889)");
+      assertEq(result.issues.length, 0, "missing STATE.md is not a blocking issue");
+      assertTrue(result.fixesApplied.some((f: string) => f.includes("STATE.md")), "reports STATE.md status as info");
+    }
+
     console.log("\n=== health gate: stale crash lock auto-cleared ===");
     {
       const dir = realpathSync(mkdtempSync(join(tmpdir(), "doc-proactive-")));