diff --git a/src/resources/extensions/gsd/auto-start.ts b/src/resources/extensions/gsd/auto-start.ts
index 139724433..3136a409c 100644
--- a/src/resources/extensions/gsd/auto-start.ts
+++ b/src/resources/extensions/gsd/auto-start.ts
@@ -315,6 +315,32 @@ export async function bootstrapAutoSession(
       }
     }
 
+    // Survivor branch exists but milestone still needs discussion (#1726):
+    // The worktree/branch was created but the milestone only has CONTEXT-DRAFT.md.
+    // Route to the interactive discussion handler instead of falling through to
+    // auto-mode, which would immediately stop with "needs discussion".
+    if (hasSurvivorBranch && state.phase === "needs-discussion") {
+      const { showSmartEntry } = await import("./guided-flow.js");
+      await showSmartEntry(ctx, pi, base, { step: requestedStepMode });
+
+      invalidateAllCaches();
+      const postState = await deriveState(base);
+      if (
+        postState.activeMilestone &&
+        postState.phase !== "needs-discussion"
+      ) {
+        state = postState;
+        // Discussion succeeded — clear survivor flag so normal flow continues
+        hasSurvivorBranch = false;
+      } else {
+        ctx.ui.notify(
+          "Discussion completed but milestone draft was not promoted. Run /gsd to try again.",
+          "warning",
+        );
+        return releaseLockAndReturn();
+      }
+    }
+
     if (!hasSurvivorBranch) {
       // No active work — start a new milestone via discuss flow
       if (!state.activeMilestone || state.phase === "complete") {
diff --git a/src/resources/extensions/gsd/tests/auto-start-needs-discussion.test.ts b/src/resources/extensions/gsd/tests/auto-start-needs-discussion.test.ts
index f8a395259..7f5bc2a59 100644
--- a/src/resources/extensions/gsd/tests/auto-start-needs-discussion.test.ts
+++ b/src/resources/extensions/gsd/tests/auto-start-needs-discussion.test.ts
@@ -200,6 +200,37 @@ async function main(): Promise<void> {
     }
   }
 
+  // ─── 7. Survivor branch + needs-discussion routes to showSmartEntry (#1726) ─
+  console.log("\n=== 7. Survivor branch + needs-discussion routes to showSmartEntry ===");
+  {
+    const source = readAutoStartSource();
+
+    // When hasSurvivorBranch is true AND phase is needs-discussion, the code
+    // must route to showSmartEntry instead of falling through to auto-mode.
+    const survivorNeedsDiscussion = source.match(
+      /if\s*\(hasSurvivorBranch\s*&&\s*state\.phase\s*===\s*"needs-discussion"\)\s*\{[^}]*showSmartEntry/s,
+    );
+    assertTrue(!!survivorNeedsDiscussion,
+      "hasSurvivorBranch && needs-discussion must route to showSmartEntry");
+
+    // Verify the handler checks if the discussion succeeded
+    const handlerBlock = source.match(
+      /if\s*\(hasSurvivorBranch\s*&&\s*state\.phase\s*===\s*"needs-discussion"\)\s*\{([\s\S]*?)\n    \}/,
+    );
+    assertTrue(!!handlerBlock,
+      "found survivor + needs-discussion handler block");
+    if (handlerBlock) {
+      assertTrue(
+        handlerBlock[1].includes('postState.phase !== "needs-discussion"'),
+        "handler must check if phase advanced after discussion",
+      );
+      assertTrue(
+        handlerBlock[1].includes("releaseLockAndReturn"),
+        "handler must abort if discussion didn't promote draft",
+      );
+    }
+  }
+
   report();
 }