diff --git a/src/resources/extensions/gsd/auto/phases.ts b/src/resources/extensions/gsd/auto/phases.ts
index 78bbd696e..a561d76c2 100644
--- a/src/resources/extensions/gsd/auto/phases.ts
+++ b/src/resources/extensions/gsd/auto/phases.ts
@@ -1303,8 +1303,8 @@ export async function runUnitPhase(
       return { action: "break", reason: "provider-pause" };
     }
     // Session creation timeout (not a structural error): pause auto-mode
-    // and let the provider-error-resume timer handle recovery. This matches
-    // the provider-pause path — break out cleanly, don't hard-stop.
+    // and let the provider-error-resume timer handle recovery (#3767). This
+    // matches the provider-pause path — break out cleanly, don't hard-stop.
     // Structural errors (TypeError, is not a function) are NOT transient
     // and must hard-stop to avoid infinite retry loops.
     if (
@@ -1312,7 +1312,7 @@ export async function runUnitPhase(
       unitResult.errorContext?.category === "timeout"
     ) {
       ctx.ui.notify(
-        `Session creation timed out for ${unitType} ${unitId}. Will retry.`,
+        `Session creation timed out for ${unitType} ${unitId}. Pausing auto-mode (recoverable).`,
         "warning",
       );
       debugLog("autoLoop", { phase: "session-timeout-pause", unitType, unitId });
diff --git a/src/resources/extensions/gsd/auto/session.ts b/src/resources/extensions/gsd/auto/session.ts
index b191d8591..5f822a51f 100644
--- a/src/resources/extensions/gsd/auto/session.ts
+++ b/src/resources/extensions/gsd/auto/session.ts
@@ -67,7 +67,7 @@ export interface SidecarItem {
 export const MAX_UNIT_DISPATCHES = 3;
 export const STUB_RECOVERY_THRESHOLD = 2;
 export const MAX_LIFETIME_DISPATCHES = 6;
-export const NEW_SESSION_TIMEOUT_MS = 30_000;
+export const NEW_SESSION_TIMEOUT_MS = 120_000;
 
 // ─── AutoSession ─────────────────────────────────────────────────────────────
 
diff --git a/src/resources/extensions/gsd/tests/integration/state-machine-runtime-failures.test.ts b/src/resources/extensions/gsd/tests/integration/state-machine-runtime-failures.test.ts
index 1c0eadf49..beba08221 100644
--- a/src/resources/extensions/gsd/tests/integration/state-machine-runtime-failures.test.ts
+++ b/src/resources/extensions/gsd/tests/integration/state-machine-runtime-failures.test.ts
@@ -360,8 +360,8 @@ describe("session management", () => {
     assert.equal(s.unitRecoveryCount.size, 0, "recovery counts cleared");
   });
 
-  test("NEW_SESSION_TIMEOUT_MS is 30 seconds", () => {
-    assert.equal(NEW_SESSION_TIMEOUT_MS, 30_000, "session timeout should be 30s");
+  test("NEW_SESSION_TIMEOUT_MS is 120 seconds", () => {
+    assert.equal(NEW_SESSION_TIMEOUT_MS, 120_000, "session timeout should be 120s");
   });
 
   test("MAX_UNIT_DISPATCHES limits retries for a single unit", () => {