diff --git a/src/resources/extensions/claude-code-cli/stream-adapter.ts b/src/resources/extensions/claude-code-cli/stream-adapter.ts
index ab106b1dc..0be1512b6 100644
--- a/src/resources/extensions/claude-code-cli/stream-adapter.ts
+++ b/src/resources/extensions/claude-code-cli/stream-adapter.ts
@@ -113,6 +113,20 @@ function makeErrorMessage(model: string, errorMsg: string): AssistantMessage {
 	};
 }
 
+/**
+ * Generator exhaustion without a terminal result means the SDK stream was
+ * interrupted mid-turn. Surface it as an error so downstream recovery logic
+ * can classify and retry it instead of treating it as a clean completion.
+ */
+export function makeStreamExhaustedErrorMessage(model: string, lastTextContent: string): AssistantMessage {
+	const errorMsg = "stream_exhausted_without_result";
+	const message = makeErrorMessage(model, errorMsg);
+	if (lastTextContent) {
+		message.content = [{ type: "text", text: lastTextContent }];
+	}
+	return message;
+}
+
 // ---------------------------------------------------------------------------
 // streamSimple implementation
 // ---------------------------------------------------------------------------
@@ -339,26 +353,11 @@ async function pumpSdkMessages(
 			}
 		}
 
-		// Generator exhausted without a result message (unexpected)
-		const fallbackContent: AssistantMessage["content"] = [];
-		if (lastTextContent) {
-			fallbackContent.push({ type: "text", text: lastTextContent });
-		}
-		if (fallbackContent.length === 0) {
-			fallbackContent.push({ type: "text", text: "(Claude Code session ended without a response)" });
-		}
-
-		const fallback: AssistantMessage = {
-			role: "assistant",
-			content: fallbackContent,
-			api: "anthropic-messages",
-			provider: "claude-code",
-			model: modelId,
-			usage: { ...ZERO_USAGE },
-			stopReason: "stop",
-			timestamp: Date.now(),
-		};
-		stream.push({ type: "done", reason: "stop", message: fallback });
+		// Generator exhaustion without a terminal result is a stream interruption,
+		// not a successful completion. Emitting an error lets GSD classify it as a
+		// transient provider failure instead of advancing auto-mode state.
+		const fallback = makeStreamExhaustedErrorMessage(modelId, lastTextContent);
+		stream.push({ type: "error", reason: "error", error: fallback });
 	} catch (err) {
 		const errorMsg = err instanceof Error ? err.message : String(err);
 		stream.push({
diff --git a/src/resources/extensions/claude-code-cli/tests/stream-adapter.test.ts b/src/resources/extensions/claude-code-cli/tests/stream-adapter.test.ts
new file mode 100644
index 000000000..052823590
--- /dev/null
+++ b/src/resources/extensions/claude-code-cli/tests/stream-adapter.test.ts
@@ -0,0 +1,21 @@
+import { describe, test } from "node:test";
+import assert from "node:assert/strict";
+import { makeStreamExhaustedErrorMessage } from "../stream-adapter.ts";
+
+describe("stream-adapter — exhausted stream fallback (#2575)", () => {
+	test("generator exhaustion becomes an error message instead of clean completion", () => {
+		const message = makeStreamExhaustedErrorMessage("claude-sonnet-4-20250514", "partial answer");
+
+		assert.equal(message.stopReason, "error");
+		assert.equal(message.errorMessage, "stream_exhausted_without_result");
+		assert.deepEqual(message.content, [{ type: "text", text: "partial answer" }]);
+	});
+
+	test("generator exhaustion without prior text still exposes a classifiable error", () => {
+		const message = makeStreamExhaustedErrorMessage("claude-sonnet-4-20250514", "");
+
+		assert.equal(message.stopReason, "error");
+		assert.equal(message.errorMessage, "stream_exhausted_without_result");
+		assert.match(String((message.content[0] as any)?.text ?? ""), /Claude Code error: stream_exhausted_without_result/);
+	});
+});
diff --git a/src/resources/extensions/gsd/provider-error-pause.ts b/src/resources/extensions/gsd/provider-error-pause.ts
index 7a5414999..67e9e1d37 100644
--- a/src/resources/extensions/gsd/provider-error-pause.ts
+++ b/src/resources/extensions/gsd/provider-error-pause.ts
@@ -22,7 +22,7 @@ export function classifyProviderError(errorMsg: string): {
   // Connection/process errors — transient, auto-resume after brief backoff (#2309).
   // These indicate the process was killed, the connection was reset, or a network
   // blip occurred. They are NOT permanent failures.
-  const isConnectionError = /terminated|connection.?reset|connection.?refused|other side closed|fetch failed|network.?(?:is\s+)?unavailable|ECONNREFUSED|ECONNRESET|EPIPE/i.test(errorMsg);
+  const isConnectionError = /terminated|connection.?reset|connection.?refused|other side closed|fetch failed|network.?(?:is\s+)?unavailable|ECONNREFUSED|ECONNRESET|EPIPE|stream_exhausted(?:_without_result)?/i.test(errorMsg);
 
   // Permanent errors — never auto-resume
   const isPermanent = /auth|unauthorized|forbidden|invalid.*key|invalid.*api|billing|quota exceeded|account/i.test(errorMsg);
diff --git a/src/resources/extensions/gsd/tests/provider-errors.test.ts b/src/resources/extensions/gsd/tests/provider-errors.test.ts
index 0512b4d90..291909d27 100644
--- a/src/resources/extensions/gsd/tests/provider-errors.test.ts
+++ b/src/resources/extensions/gsd/tests/provider-errors.test.ts
@@ -42,6 +42,15 @@ test("classifyProviderError defaults to 60s for rate limit without reset", () =>
   assert.equal(result.suggestedDelayMs, 60_000);
 });
 
+test("classifyProviderError treats stream_exhausted_without_result as transient connection failure", () => {
+  const result = classifyProviderError("stream_exhausted_without_result");
+  assert.deepStrictEqual(result, {
+    isTransient: true,
+    isRateLimit: false,
+    suggestedDelayMs: 15_000,
+  });
+});
+
 test("classifyProviderError detects Anthropic internal server error", () => {
   const msg = '{"type":"error","error":{"details":null,"type":"api_error","message":"Internal server error"}}';
   const result = classifyProviderError(msg);