diff --git a/src/resources/extensions/gsd/auto.ts b/src/resources/extensions/gsd/auto.ts
index 87ef155f4..d3cc18967 100644
--- a/src/resources/extensions/gsd/auto.ts
+++ b/src/resources/extensions/gsd/auto.ts
@@ -211,6 +211,11 @@ const MAX_LIFETIME_DISPATCHES = 6;
 /** Tracks recovery attempt count per unit for backoff and diagnostics. */
 const unitRecoveryCount = new Map<string, number>();
 
+/** Track consecutive skips per unit — catches infinite skip loops where deriveState
+ *  keeps returning the same already-completed unit. Reset on any real dispatch. */
+const unitConsecutiveSkips = new Map<string, number>();
+const MAX_CONSECUTIVE_SKIPS = 3;
+
 /** Persisted completed-unit keys — survives restarts. Loaded from .gsd/completed-units.json. */
 const completedKeySet = new Set<string>();
 
@@ -624,6 +629,7 @@ export async function stopAuto(ctx?: ExtensionContext, pi?: ExtensionAPI): Promi
   stepMode = false;
   unitDispatchCount.clear();
   unitRecoveryCount.clear();
+  unitConsecutiveSkips.clear();
   inFlightTools.clear();
   lastBudgetAlertLevel = 0;
   unitLifetimeDispatches.clear();
@@ -714,6 +720,7 @@ export async function startAuto(
     basePath = base;
     unitDispatchCount.clear();
     unitLifetimeDispatches.clear();
+    unitConsecutiveSkips.clear();
     // Re-initialize metrics in case ledger was lost during pause
     if (!getLedger()) initMetrics(base);
     // Ensure milestone ID is set on git service for integration branch resolution
@@ -992,6 +999,7 @@ export async function startAuto(
   basePath = base;
   unitDispatchCount.clear();
   unitRecoveryCount.clear();
+  unitConsecutiveSkips.clear();
   lastBudgetAlertLevel = 0;
   unitLifetimeDispatches.clear();
   completedKeySet.clear();
@@ -1919,6 +1927,7 @@ async function dispatchNextUnit(
     // Reset stuck detection for new milestone
     unitDispatchCount.clear();
     unitRecoveryCount.clear();
+  unitConsecutiveSkips.clear();
     unitLifetimeDispatches.clear();
     // Clear completed-units.json for the finished milestone
     try {
@@ -2286,6 +2295,26 @@ async function dispatchNextUnit(
     // Cross-validate: does the expected artifact actually exist?
     const artifactExists = verifyExpectedArtifact(unitType, unitId, basePath);
     if (artifactExists) {
+      // Guard against infinite skip loops: if deriveState keeps returning the
+      // same completed unit, consecutive skips will trip this breaker. Evict the
+      // key so the next dispatch forces full reconciliation instead of looping.
+      const skipCount = (unitConsecutiveSkips.get(idempotencyKey) ?? 0) + 1;
+      unitConsecutiveSkips.set(idempotencyKey, skipCount);
+      if (skipCount > MAX_CONSECUTIVE_SKIPS) {
+        unitConsecutiveSkips.delete(idempotencyKey);
+        completedKeySet.delete(idempotencyKey);
+        removePersistedKey(basePath, idempotencyKey);
+        invalidateStateCache();
+        ctx.ui.notify(
+          `Skip loop detected: ${unitType} ${unitId} skipped ${skipCount} times without advancing. Evicting completion record and forcing reconciliation.`,
+          "warning",
+        );
+        _skipDepth++;
+        await new Promise(r => setTimeout(r, 50));
+        await dispatchNextUnit(ctx, pi);
+        _skipDepth = Math.max(0, _skipDepth - 1);
+        return;
+      }
       ctx.ui.notify(
         `Skipping ${unitType} ${unitId} — already completed in a prior session. Advancing.`,
         "info",
@@ -2315,6 +2344,24 @@ async function dispatchNextUnit(
     persistCompletedKey(basePath, idempotencyKey);
     completedKeySet.add(idempotencyKey);
     invalidateStateCache();
+    // Same consecutive-skip guard as the idempotency path above.
+    const skipCount2 = (unitConsecutiveSkips.get(idempotencyKey) ?? 0) + 1;
+    unitConsecutiveSkips.set(idempotencyKey, skipCount2);
+    if (skipCount2 > MAX_CONSECUTIVE_SKIPS) {
+      unitConsecutiveSkips.delete(idempotencyKey);
+      completedKeySet.delete(idempotencyKey);
+      removePersistedKey(basePath, idempotencyKey);
+      invalidateStateCache();
+      ctx.ui.notify(
+        `Skip loop detected: ${unitType} ${unitId} skipped ${skipCount2} times without advancing. Evicting completion record and forcing reconciliation.`,
+        "warning",
+      );
+      _skipDepth++;
+      await new Promise(r => setTimeout(r, 50));
+      await dispatchNextUnit(ctx, pi);
+      _skipDepth = Math.max(0, _skipDepth - 1);
+      return;
+    }
     ctx.ui.notify(
       `Skipping ${unitType} ${unitId} — artifact exists but completion key was missing. Repaired and advancing.`,
       "info",
@@ -2330,6 +2377,8 @@ async function dispatchNextUnit(
   // Pattern A→B→A→B would reset retryCount every time; this map catches it.
   const dispatchKey = `${unitType}/${unitId}`;
   const prevCount = unitDispatchCount.get(dispatchKey) ?? 0;
+  // Real dispatch reached — clear the consecutive-skip counter for this unit.
+  unitConsecutiveSkips.delete(dispatchKey);
 
   debugLog("dispatch-unit", {
     type: unitType,
@@ -3275,6 +3324,14 @@ export {
   buildLoopRemediationSteps,
 } from "./auto-recovery.js";
 
+/**
+ * Test-only: expose skip-loop state for unit tests.
+ * Not part of the public API.
+ */
+export function _getUnitConsecutiveSkips(): Map<string, number> { return unitConsecutiveSkips; }
+export function _resetUnitConsecutiveSkips(): void { unitConsecutiveSkips.clear(); }
+export { MAX_CONSECUTIVE_SKIPS };
+
 /**
  * Dispatch a hook unit directly, bypassing normal pre-dispatch hooks.
  * Used for manual hook triggers via /gsd run-hook.
diff --git a/src/resources/extensions/gsd/tests/auto-skip-loop.test.ts b/src/resources/extensions/gsd/tests/auto-skip-loop.test.ts
new file mode 100644
index 000000000..b50526115
--- /dev/null
+++ b/src/resources/extensions/gsd/tests/auto-skip-loop.test.ts
@@ -0,0 +1,123 @@
+/**
+ * auto-skip-loop.test.ts — Tests for the consecutive-skip loop breaker.
+ *
+ * Regression for #728: auto-mode infinite skip loop on previously completed
+ * plan-slice units when deriveState keeps returning the same unit.
+ *
+ * The skip paths in dispatchNextUnit track consecutive skips per unit via
+ * unitConsecutiveSkips. When the same unit is skipped > MAX_CONSECUTIVE_SKIPS
+ * times without a real dispatch in between, the completion record is evicted
+ * so deriveState can reconcile.
+ */
+
+import { mkdtempSync, mkdirSync, writeFileSync, rmSync } from "node:fs";
+import { join } from "node:path";
+import { tmpdir } from "node:os";
+
+import {
+  _getUnitConsecutiveSkips,
+  _resetUnitConsecutiveSkips,
+  MAX_CONSECUTIVE_SKIPS,
+} from "../auto.ts";
+import { persistCompletedKey, removePersistedKey, loadPersistedKeys } from "../auto-recovery.ts";
+import { createTestContext } from "./test-helpers.ts";
+
+const { assertEq, assertTrue, report } = createTestContext();
+
+function makeTmpBase(): string {
+  const dir = mkdtempSync(join(tmpdir(), "gsd-skip-loop-test-"));
+  mkdirSync(join(dir, ".gsd"), { recursive: true });
+  return dir;
+}
+
+async function main(): Promise<void> {
+  // ─── Counter starts at zero ────────────────────────────────────────────
+  console.log("\n=== skip loop counter: initial state ===");
+  {
+    _resetUnitConsecutiveSkips();
+    const map = _getUnitConsecutiveSkips();
+    assertEq(map.size, 0, "counter map starts empty after reset");
+  }
+
+  // ─── Counter increments correctly ────────────────────────────────────
+  console.log("\n=== skip loop counter: increments on repeated calls ===");
+  {
+    _resetUnitConsecutiveSkips();
+    const map = _getUnitConsecutiveSkips();
+    const key = "plan-slice/M001/S04";
+
+    for (let i = 1; i <= MAX_CONSECUTIVE_SKIPS; i++) {
+      const prev = map.get(key) ?? 0;
+      map.set(key, prev + 1);
+    }
+
+    assertEq(map.get(key), MAX_CONSECUTIVE_SKIPS, `counter reaches MAX_CONSECUTIVE_SKIPS (${MAX_CONSECUTIVE_SKIPS})`);
+  }
+
+  // ─── Threshold constant is sane ──────────────────────────────────────
+  console.log("\n=== skip loop counter: threshold is reasonable ===");
+  {
+    assertTrue(MAX_CONSECUTIVE_SKIPS >= 3, "threshold allows a few legitimate skips");
+    assertTrue(MAX_CONSECUTIVE_SKIPS <= 10, "threshold catches loops quickly");
+  }
+
+  // ─── Reset clears all keys ────────────────────────────────────────────
+  console.log("\n=== skip loop counter: reset clears all keys ===");
+  {
+    _resetUnitConsecutiveSkips();
+    const map = _getUnitConsecutiveSkips();
+    map.set("plan-slice/M001/S01", 2);
+    map.set("plan-slice/M001/S02", 1);
+    assertEq(map.size, 2, "map has 2 entries before reset");
+
+    _resetUnitConsecutiveSkips();
+    assertEq(_getUnitConsecutiveSkips().size, 0, "map empty after reset");
+  }
+
+  // ─── Eviction path: persistCompletedKey + removePersistedKey round-trip
+  //     (simulates what the loop-breaker does) ───────────────────────────
+  console.log("\n=== skip loop counter: eviction removes persisted key ===");
+  {
+    _resetUnitConsecutiveSkips();
+    const base = makeTmpBase();
+    try {
+      const key = "plan-slice/M001/S04";
+      const keySet = new Set<string>();
+
+      persistCompletedKey(base, key);
+      loadPersistedKeys(base, keySet);
+      assertTrue(keySet.has(key), "key persisted before eviction");
+
+      // Simulate loop-breaker eviction
+      keySet.delete(key);
+      removePersistedKey(base, key);
+      const keySet2 = new Set<string>();
+      loadPersistedKeys(base, keySet2);
+      assertTrue(!keySet2.has(key), "key absent after eviction");
+    } finally {
+      rmSync(base, { recursive: true, force: true });
+    }
+  }
+
+  // ─── Counter resets per-key, not globally ─────────────────────────────
+  console.log("\n=== skip loop counter: per-key isolation ===");
+  {
+    _resetUnitConsecutiveSkips();
+    const map = _getUnitConsecutiveSkips();
+    map.set("plan-slice/M001/S04", MAX_CONSECUTIVE_SKIPS + 1);
+    map.set("plan-slice/M001/S05", 1);
+
+    // Deleting S04 (eviction) should not affect S05
+    map.delete("plan-slice/M001/S04");
+    assertTrue(!map.has("plan-slice/M001/S04"), "S04 evicted");
+    assertEq(map.get("plan-slice/M001/S05"), 1, "S05 counter unaffected");
+  }
+
+  _resetUnitConsecutiveSkips();
+  report();
+}
+
+main().catch((err) => {
+  console.error(err);
+  process.exit(1);
+});