diff --git a/packages/pi-coding-agent/src/core/agent-session.ts b/packages/pi-coding-agent/src/core/agent-session.ts
index c856e9229..bd7c00fe8 100644
--- a/packages/pi-coding-agent/src/core/agent-session.ts
+++ b/packages/pi-coding-agent/src/core/agent-session.ts
@@ -2553,7 +2553,7 @@ export class AgentSession {
 		if (message.retryAfterMs !== undefined) {
 			const cap = settings.maxDelayMs > 0 ? settings.maxDelayMs : Infinity;
 			if (message.retryAfterMs > cap) {
-				// Server wants us to wait longer than our max — give up immediately
+				// Server wants us to wait longer than maxDelayMs — give up to let auto-mode handle recovery
 				this._emit({
 					type: "auto_retry_end",
 					success: false,
diff --git a/packages/pi-coding-agent/src/core/settings-manager.ts b/packages/pi-coding-agent/src/core/settings-manager.ts
index 8575dc08a..665b556b2 100644
--- a/packages/pi-coding-agent/src/core/settings-manager.ts
+++ b/packages/pi-coding-agent/src/core/settings-manager.ts
@@ -20,7 +20,7 @@ export interface RetrySettings {
 	enabled?: boolean; // default: true
 	maxRetries?: number; // default: 3
 	baseDelayMs?: number; // default: 2000 (exponential backoff: 2s, 4s, 8s)
-	maxDelayMs?: number; // default: 60000 (max server-requested delay before failing)
+	maxDelayMs?: number; // default: 300000 (max server-requested delay before failing)
 }
 
 export interface TerminalSettings {
@@ -752,7 +752,7 @@ export class SettingsManager {
 			enabled: this.getRetryEnabled(),
 			maxRetries: this.settings.retry?.maxRetries ?? 3,
 			baseDelayMs: this.settings.retry?.baseDelayMs ?? 2000,
-			maxDelayMs: this.settings.retry?.maxDelayMs ?? 60000,
+			maxDelayMs: this.settings.retry?.maxDelayMs ?? 300000,
 		};
 	}