diff --git a/apps/server/src/orchestration-v2/Orchestrator.ts b/apps/server/src/orchestration-v2/Orchestrator.ts
index 600764704e57f..8eb3362af0c4e 100644
--- a/apps/server/src/orchestration-v2/Orchestrator.ts
+++ b/apps/server/src/orchestration-v2/Orchestrator.ts
@@ -5418,6 +5418,20 @@ const makeOrchestrator = Effect.fn("orchestrationV2.Orchestrator.layer")(functio
       const failure = latestRootProviderFailure(run, projection.turnItems);
       const recovery = projection.thread.limitRecovery;
       const now = yield* DateTime.now;
+      const parentId =
+        projection.thread.lineage.relationshipToParent === "subagent"
+          ? projection.thread.lineage.parentThreadId
+          : null;
+      // A subagent of a settled parent is abandoned work; resuming it would reopen the parent.
+      const parentSettled =
+        parentId !== null &&
+        (yield* projectionStore
+          .getThreadShell(parentId)
+          .pipe(
+            Effect.mapError(
+              (cause) => new OrchestratorProjectionError({ threadId: parentId, cause }),
+            ),
+          ))?.settledOverride === "settled";
       if (
         run?.id !== command.usageLimitContinuationOfRunId ||
         failure?.class !== "usage_limit" ||
@@ -5430,11 +5444,16 @@ const makeOrchestrator = Effect.fn("orchestrationV2.Orchestrator.layer")(functio
         projection.thread.archivedAt !== null ||
         projection.thread.deletedAt !== null ||
         projection.thread.settledOverride === "settled" ||
+        parentSettled ||
         projection.thread.providerInstanceId !== run.providerInstanceId ||
         projection.runtimeRequests.some((request) => request.status === "pending") ||
         (projection.thread.snoozedUntil != null &&
           DateTime.toEpochMillis(projection.thread.snoozedUntil) > DateTime.toEpochMillis(now))
       ) {
+        const recoveryMatches =
+          recovery?.autoResume &&
+          recovery.requestId === command.usageLimitRecoveryRequestId &&
+          recovery.runId === command.usageLimitContinuationOfRunId;
         yield* emit(
           events,
           command,
@@ -5444,13 +5463,15 @@ const makeOrchestrator = Effect.fn("orchestrationV2.Orchestrator.layer")(functio
           occurredAt: now,
           payload: {
             ...projection.thread,
-            ...(recovery?.autoResume &&
-            recovery.requestId === command.usageLimitRecoveryRequestId &&
-            recovery.runId === command.usageLimitContinuationOfRunId &&
-            projection.thread.snoozedUntil != null &&
-            DateTime.toEpochMillis(projection.thread.snoozedUntil) > DateTime.toEpochMillis(now)
-              ? { limitRecovery: { ...recovery, requestId: command.commandId } }
-              : {}),
+            // A settled parent retires the resume; leaving it armed would replay this receipt.
+            ...(recoveryMatches && parentSettled
+              ? { limitRecovery: { ...recovery, autoResume: false, requestId: command.commandId } }
+              : recoveryMatches &&
+                  projection.thread.snoozedUntil != null &&
+                  DateTime.toEpochMillis(projection.thread.snoozedUntil) >
+                    DateTime.toEpochMillis(now)
+                ? { limitRecovery: { ...recovery, requestId: command.commandId } }
+                : {}),
           },
         });
         return;
diff --git a/apps/server/src/orchestration-v2/runtimeLayer.test.ts b/apps/server/src/orchestration-v2/runtimeLayer.test.ts
index b38fb737c91db..2dfec54539479 100644
--- a/apps/server/src/orchestration-v2/runtimeLayer.test.ts
+++ b/apps/server/src/orchestration-v2/runtimeLayer.test.ts
@@ -8524,6 +8524,166 @@ it.layer(layerTest)("usage-limit recovery", (it) => {
       }
     }),
   );
+
+  it.effect("retires a usage-limited subagent resume once its parent settles", () =>
+    Effect.gen(function* () {
+      const orchestrator = yield* Orchestrator.OrchestratorV2;
+      const events = yield* EventSink.EventSinkV2;
+      const projections = yield* ProjectionStore.ProjectionStoreV2;
+      const parentId = ThreadId.make("recovery:settled-parent:parent");
+      const childId = ThreadId.make("recovery:settled-parent:child");
+      const projectId = ProjectId.make("recovery:settled-parent:project");
+      yield* seedProject({
+        projectId,
+        title: "Recovery project",
+        workspaceRoot: process.cwd(),
+        defaultModelSelection: modelSelection,
+        createdAt: DateTime.formatIso(yield* DateTime.now),
+      });
+      for (const threadId of [parentId, childId])
+        yield* orchestrator.dispatch({
+          type: "thread.create",
+          commandId: CommandId.make(`${threadId}:create`),
+          threadId,
+          projectId,
+          title: "Limited thread",
+          modelSelection,
+          runtimeMode: "full-access",
+          interactionMode: "default",
+          branch: null,
+          worktreePath: null,
+          createdBy: "user",
+          creationSource: "web",
+        });
+      yield* orchestrator.dispatch({
+        type: "message.dispatch",
+        commandId: CommandId.make("recovery:settled-parent:message"),
+        threadId: childId,
+        messageId: MessageId.make("recovery:settled-parent:message"),
+        text: "Work on this.",
+        attachments: [],
+        dispatchMode: { type: "defer_start" },
+        createdBy: "user",
+        creationSource: "web",
+      });
+      const child = yield* orchestrator.getThreadProjection(childId);
+      const run = child.runs[0]!;
+      const now = yield* DateTime.now;
+      const resetAt = DateTime.formatIso(DateTime.add(now, { minutes: 1 }));
+      yield* events.write({
+        events: [
+          {
+            id: EventId.make("recovery:settled-parent:lineage"),
+            type: "thread.metadata-updated",
+            threadId: childId,
+            occurredAt: now,
+            payload: {
+              ...child.thread,
+              lineage: {
+                parentThreadId: parentId,
+                rootThreadId: parentId,
+                relationshipToParent: "subagent",
+              },
+            },
+          },
+          {
+            id: EventId.make("recovery:settled-parent:run"),
+            type: "run.updated",
+            threadId: childId,
+            occurredAt: now,
+            payload: { ...run, status: "failed", completedAt: now },
+          },
+          {
+            id: EventId.make("recovery:settled-parent:error"),
+            type: "turn-item.updated",
+            threadId: childId,
+            occurredAt: now,
+            payload: {
+              id: TurnItemId.make("recovery:settled-parent:error"),
+              type: "error",
+              threadId: childId,
+              runId: run.id,
+              nodeId: run.rootNodeId,
+              providerThreadId: null,
+              providerTurnId: null,
+              nativeItemRef: null,
+              parentItemId: null,
+              ordinal: 2,
+              status: "failed",
+              title: "Usage limit reached",
+              startedAt: now,
+              completedAt: now,
+              updatedAt: now,
+              failure: {
+                class: "usage_limit",
+                message: "Plan limit reached.",
+                code: "usageLimitExceeded",
+                retryable: null,
+                resetAt,
+              },
+            },
+          },
+        ],
+      });
+      const sweep = Effect.fnUntraced(function* (nowMs: number) {
+        const candidate = (yield* projections.getLimitRecoveryCandidates({
+          now: DateTime.makeUnsafe(nowMs),
+          autoResume: true,
+          snooze: false,
+        })).find((row) => row.id === childId);
+        return candidate === undefined ? null : limitRecoveryCommand(candidate, true, nowMs);
+      });
+      const arm = yield* sweep(DateTime.toEpochMillis(now));
+      assert(arm?.type === "thread.metadata.update" && arm.limitRecovery != null);
+      yield* orchestrator.autoArmLimitRecovery({
+        commandId: arm.commandId,
+        threadId: childId,
+        limitRecovery: arm.limitRecovery,
+      });
+      const resume = yield* sweep(Date.parse(resetAt));
+      assert.equal(resume?.type, "message.dispatch");
+      yield* orchestrator.dispatch({
+        type: "thread.settle",
+        commandId: CommandId.make("recovery:settled-parent:settle"),
+        threadId: parentId,
+      });
+      yield* TestClock.adjust("1 minute");
+      yield* orchestrator.dispatch(resume!);
+      let current = yield* orchestrator.getThreadProjection(childId);
+      assert.lengthOf(current.runs, 1);
+      assert.isFalse(current.thread.limitRecovery!.autoResume);
+      assert.equal(
+        (yield* orchestrator.getThreadProjection(parentId)).thread.settledOverride,
+        "settled",
+      );
+      yield* orchestrator.dispatch({
+        type: "thread.unsettle",
+        commandId: CommandId.make("recovery:settled-parent:unsettle"),
+        threadId: parentId,
+        reason: "user",
+      });
+      assert.isNull(yield* sweep(DateTime.toEpochMillis(yield* DateTime.now)));
+      yield* orchestrator.dispatch(resume!);
+      current = yield* orchestrator.getThreadProjection(childId);
+      assert.lengthOf(current.runs, 1);
+      assert.isFalse(current.thread.limitRecovery!.autoResume);
+      yield* orchestrator.dispatch({
+        type: "thread.metadata.update",
+        commandId: CommandId.make("recovery:settled-parent:rearm"),
+        threadId: childId,
+        limitRecovery: { runId: run.id, resetAt, autoResume: true },
+      });
+      const rearmed = (yield* orchestrator.getThreadProjection(childId)).thread.limitRecovery;
+      assert.isTrue(rearmed!.autoResume);
+      yield* orchestrator.dispatch({
+        ...resume!,
+        commandId: CommandId.make("recovery:settled-parent:stale-resume"),
+      });
+      current = yield* orchestrator.getThreadProjection(childId);
+      assert.lengthOf(current.runs, 1);
+      assert.deepEqual(current.thread.limitRecovery, rearmed);
+    }),
+  );
 });
 
 const queueResumeDisabledInstanceProjectId = ProjectId.make(
diff --git a/docs/user/thread-sidebar.md b/docs/user/thread-sidebar.md
index bed4ed73a40c5..3fc960625552c 100644
--- a/docs/user/thread-sidebar.md
+++ b/docs/user/thread-sidebar.md
@@ -249,7 +249,9 @@ continuation. You can cancel it from the thread. Enable **Resume after
 usage limits** in **Settings → Threads** to schedule limit stops by default.
 The environment must be running when the reset arrives; it resumes overdue
 continuations after a restart. Stopping the thread, sending a new message,
-archiving, or settling it prevents a pending continuation from starting.
+archiving, or settling it prevents a pending continuation from starting. A
+task the thread delegated does not continue at its reset while the thread is
+settled; its continuation is cancelled instead.
 
 Choose **Snooze until reset** to hide the thread until its allowance returns.
 Snooze and auto-resume are independent: snooze alone wakes the thread without