diff --git a/src/resources/extensions/gsd/auto.ts b/src/resources/extensions/gsd/auto.ts
index 785f05f3a..218a21fab 100644
--- a/src/resources/extensions/gsd/auto.ts
+++ b/src/resources/extensions/gsd/auto.ts
@@ -16,7 +16,7 @@ import type {
   ExtensionCommandContext,
 } from "@gsd/pi-coding-agent";
 
-import { deriveState, invalidateStateCache } from "./state.js";
+import { deriveState } from "./state.js";
 import type { BudgetEnforcementMode, GSDState } from "./types.js";
 import { loadFile, parseRoadmap, getManifestStatus, resolveAllOverrides } from "./files.js";
 import { loadPrompt } from "./prompt-loader.js";
@@ -1465,7 +1465,7 @@ export async function handleAgentEnd(
             persistCompletedKey(basePath, completionKey);
             completedKeySet.add(completionKey);
           }
-          invalidateStateCache();
+          invalidateAllCaches();
         }
       } catch {
         // Non-fatal — worst case we fall through to normal dispatch which has its own checks
@@ -2448,7 +2448,7 @@ async function dispatchNextUnit(
         unitConsecutiveSkips.delete(idempotencyKey);
         completedKeySet.delete(idempotencyKey);
         removePersistedKey(basePath, idempotencyKey);
-        invalidateStateCache();
+        invalidateAllCaches();
         ctx.ui.notify(
           `Skip loop detected: ${unitType} ${unitId} skipped ${skipCount} times without advancing. Evicting completion record and forcing reconciliation.`,
           "warning",
@@ -2487,7 +2487,7 @@ async function dispatchNextUnit(
   if (verifyExpectedArtifact(unitType, unitId, basePath)) {
     persistCompletedKey(basePath, idempotencyKey);
     completedKeySet.add(idempotencyKey);
-    invalidateStateCache();
+    invalidateAllCaches();
     // Same consecutive-skip guard as the idempotency path above.
     const skipCount2 = (unitConsecutiveSkips.get(idempotencyKey) ?? 0) + 1;
     unitConsecutiveSkips.set(idempotencyKey, skipCount2);
@@ -2495,7 +2495,7 @@ async function dispatchNextUnit(
       unitConsecutiveSkips.delete(idempotencyKey);
       completedKeySet.delete(idempotencyKey);
       removePersistedKey(basePath, idempotencyKey);
-      invalidateStateCache();
+      invalidateAllCaches();
       ctx.ui.notify(
         `Skip loop detected: ${unitType} ${unitId} skipped ${skipCount2} times without advancing. Evicting completion record and forcing reconciliation.`,
         "warning",
@@ -2581,7 +2581,7 @@ async function dispatchNextUnit(
             persistCompletedKey(basePath, reconciledKey);
             completedKeySet.add(reconciledKey);
             unitDispatchCount.delete(dispatchKey);
-            invalidateStateCache();
+            invalidateAllCaches();
             await new Promise(r => setImmediate(r));
             await dispatchNextUnit(ctx, pi);
             return;
@@ -2608,7 +2608,7 @@ async function dispatchNextUnit(
       persistCompletedKey(basePath, dispatchKey);
       completedKeySet.add(dispatchKey);
       unitDispatchCount.delete(dispatchKey);
-      invalidateStateCache();
+      invalidateAllCaches();
       await new Promise(r => setImmediate(r));
       await dispatchNextUnit(ctx, pi);
       return;
@@ -2628,7 +2628,7 @@ async function dispatchNextUnit(
             persistCompletedKey(basePath, dispatchKey);
             completedKeySet.add(dispatchKey);
             unitDispatchCount.delete(dispatchKey);
-            invalidateStateCache();
+            invalidateAllCaches();
             await new Promise(r => setImmediate(r));
             await dispatchNextUnit(ctx, pi);
             return;
@@ -2669,7 +2669,7 @@ async function dispatchNextUnit(
             persistCompletedKey(basePath, repairedKey);
             completedKeySet.add(repairedKey);
             unitDispatchCount.delete(dispatchKey);
-            invalidateStateCache();
+            invalidateAllCaches();
             await new Promise(r => setImmediate(r));
             await dispatchNextUnit(ctx, pi);
             return;
diff --git a/src/resources/extensions/gsd/doctor.ts b/src/resources/extensions/gsd/doctor.ts
index c15221d75..7ffb29830 100644
--- a/src/resources/extensions/gsd/doctor.ts
+++ b/src/resources/extensions/gsd/doctor.ts
@@ -4,6 +4,7 @@ import { join, sep } from "node:path";
 import { loadFile, parsePlan, parseRoadmap, parseSummary, saveFile, parseTaskPlanMustHaves, countMustHavesMentionedInSummary } from "./files.js";
 import { resolveMilestoneFile, resolveMilestonePath, resolveSliceFile, resolveSlicePath, resolveTaskFile, resolveTaskFiles, resolveTasksDir, milestonesDir, gsdRoot, relMilestoneFile, relSliceFile, relTaskFile, relSlicePath, relGsdRootFile, resolveGsdRootFile } from "./paths.js";
 import { deriveState, isMilestoneComplete } from "./state.js";
+import { invalidateAllCaches } from "./cache.js";
 import { loadEffectiveGSDPreferences, type GSDPreferences } from "./preferences.js";
 import { listWorktrees, resolveGitDir } from "./worktree-manager.js";
 import { abortAndReset } from "./git-self-heal.js";
@@ -200,6 +201,7 @@ async function updateStateFile(basePath: string, fixesApplied: string[]): Promis
 
 /** Rebuild STATE.md from current disk state. Exported for auto-mode post-hooks. */
 export async function rebuildState(basePath: string): Promise<void> {
+  invalidateAllCaches();
   const state = await deriveState(basePath);
   const path = resolveGsdRootFile(basePath, "STATE");
   await saveFile(path, buildStateMarkdown(state));
diff --git a/src/resources/extensions/gsd/tests/auto-recovery.test.ts b/src/resources/extensions/gsd/tests/auto-recovery.test.ts
index 597669fe9..1e193cb11 100644
--- a/src/resources/extensions/gsd/tests/auto-recovery.test.ts
+++ b/src/resources/extensions/gsd/tests/auto-recovery.test.ts
@@ -17,6 +17,8 @@ import {
   loadPersistedKeys,
 } from "../auto-recovery.ts";
 import { parseRoadmap, clearParseCache } from "../files.ts";
+import { invalidateAllCaches } from "../cache.ts";
+import { deriveState, invalidateStateCache } from "../state.ts";
 
 function makeTmpBase(): string {
   const base = join(tmpdir(), `gsd-test-${randomUUID()}`);
@@ -584,3 +586,55 @@ test("selfHealRuntimeRecords clears stale record when artifact exists at worktre
     cleanup(mainBase);
   }
 });
+
+// ─── #793: invalidateAllCaches unblocks skip-loop ─────────────────────────
+// When the skip-loop breaker fires, it must call invalidateAllCaches() (not
+// just invalidateStateCache()) to clear path/parse caches that deriveState
+// depends on. Without this, even after cache invalidation, deriveState reads
+// stale directory listings and returns the same unit, looping forever.
+test("#793: invalidateAllCaches clears all caches so deriveState sees fresh disk state", async () => {
+  const base = makeTmpBase();
+  try {
+    const mid = "M001";
+    const sid = "S01";
+    const planDir = join(base, ".gsd", "milestones", mid, "slices", sid);
+    const tasksDir = join(planDir, "tasks");
+    mkdirSync(tasksDir, { recursive: true });
+    mkdirSync(join(base, ".gsd", "milestones", mid), { recursive: true });
+
+    writeFileSync(
+      join(base, ".gsd", "milestones", mid, `${mid}-ROADMAP.md`),
+      `# M001: Test Milestone\n\n**Vision:** test.\n\n## Slices\n\n- [ ] **${sid}: Slice One** \`risk:low\` \`depends:[]\`\n  > After this: done.\n`,
+    );
+    const planUnchecked = `# ${sid}: Slice One\n\n**Goal:** test.\n\n## Tasks\n\n- [ ] **T01: Task One** \`est:10m\`\n- [ ] **T02: Task Two** \`est:10m\`\n`;
+    writeFileSync(join(planDir, `${sid}-PLAN.md`), planUnchecked);
+    writeFileSync(join(tasksDir, "T01-PLAN.md"), "# T01: Task One\n\n**Goal:** t\n\n## Steps\n- step\n\n## Verification\n- v\n");
+    writeFileSync(join(tasksDir, "T02-PLAN.md"), "# T02: Task Two\n\n**Goal:** t\n\n## Steps\n- step\n\n## Verification\n- v\n");
+
+    // Warm all caches
+    const state1 = await deriveState(base);
+    assert.equal(state1.activeTask?.id, "T01", "initial: T01 is active");
+
+    // Simulate task completion on disk (what the LLM does)
+    const planChecked = `# ${sid}: Slice One\n\n**Goal:** test.\n\n## Tasks\n\n- [x] **T01: Task One** \`est:10m\`\n- [ ] **T02: Task Two** \`est:10m\`\n`;
+    writeFileSync(join(planDir, `${sid}-PLAN.md`), planChecked);
+    writeFileSync(join(tasksDir, "T01-SUMMARY.md"), "---\nid: T01\n---\n# Summary\n");
+
+    // invalidateStateCache alone: _stateCache cleared but path/parse caches warm
+    invalidateStateCache();
+
+    // invalidateAllCaches: all caches cleared — deriveState must re-read disk
+    invalidateAllCaches();
+    const state2 = await deriveState(base);
+
+    // After full invalidation, T01 should be complete and T02 should be next
+    assert.notEqual(state2.activeTask?.id, "T01", "#793: T01 not re-dispatched after full invalidation");
+
+    // Verify the caches are truly cleared by calling clearParseCache and clearPathCache
+    // do not throw (they should be no-ops after invalidateAllCaches already cleared them)
+    clearParseCache(); // no-op, but should not throw
+    assert.ok(true, "clearParseCache after invalidateAllCaches is safe");
+  } finally {
+    cleanup(base);
+  }
+});