diff --git a/src/mgr/result.ts b/src/mgr/result.ts
index 7d8ac61..7320ef8 100644
--- a/src/mgr/result.ts
+++ b/src/mgr/result.ts
@@ -29,10 +29,12 @@ interface AssistantReplySummary {
 interface TerminalClassificationInput {
   terminal: TerminalStatus | null;
   terminalSource: string;
+  active: boolean;
   failureKind: FailureKind | null;
   failureMessage: string | null;
   timeoutBudget: JsonRecord;
   transportDisconnect: RunEvent | null;
+  retryInterruption: RunEvent | null;
   lastActivity: JsonRecord | null;
   command: CommandRecord | null;
 }
@@ -117,9 +119,10 @@ function livenessSnapshot(run: RunRecord, command: CommandRecord | null, events:
   const lastCommandActivity = lastBusinessActivity ?? latestLivenessActivity(scopedEvents);
   const lease = leaseSummary(run, nowMs);
   const transportDisconnect = latestTransportDisconnect(scopedEvents);
+  const retryInterruption = latestRetryInterruption(scopedEvents);
   const lastActivity = livenessActivitySummary(lastCommandActivity, nowMs);
   const timeoutBudget = timeoutBudgetSummary(run, command, terminal, failureKind, nowMs, lastActivity);
-  const terminalClassification = terminalClassificationFromEvidence({ terminal, terminalSource: "liveness", failureKind, failureMessage, timeoutBudget, transportDisconnect, lastActivity, command });
+  const terminalClassification = terminalClassificationFromEvidence({ terminal, terminalSource: "liveness", active, failureKind, failureMessage, timeoutBudget, transportDisconnect, retryInterruption, lastActivity, command });
   const phase = livenessPhase({ active, command, lastVisibleActivity, leaseExpired: lease.leaseExpired, transportDisconnect, timeoutBudget, lastActivity });
   const afterSeq = lastEvent?.seq ?? 0;
   return {
@@ -139,6 +142,7 @@ function livenessSnapshot(run: RunRecord, command: CommandRecord | null, events:
     terminalClassification,
     lease,
     transportDisconnect: transportDisconnect ? livenessActivitySummary(transportDisconnect, nowMs) : null,
+    retryInterruption: retryInterruption ? livenessActivitySummary(retryInterruption, nowMs) : null,
     recoveryActions: recoveryActions({ run, command, afterSeq, active, terminal, failureKind, failureMessage }),
     valuesPrinted: false,
   };
@@ -183,6 +187,7 @@ function terminalClassificationFromEvidence(input: TerminalClassificationInput):
   const idleTimeout = timeoutFailure && timeoutKind === "idle";
   const hardTimeout = timeoutFailure && timeoutKind === "hard";
   const providerKind = providerFailureCategory(input.failureKind);
+  const retryInterruptionKind = failureKindValue(input.retryInterruption?.payload.failureKind);
   const cancelled = input.terminal === "cancelled" || input.failureKind === "cancelled";
   const taskFailure = input.terminal === "failed" && input.failureKind !== null && !timeoutFailure && !providerKind && !infrastructureFailureKind(input.failureKind);
   let category = "unknown";
@@ -190,7 +195,12 @@ function terminalClassificationFromEvidence(input: TerminalClassificationInput):
   let providerEvidence = "not-applicable";
   let reason = "terminal state is not yet available";
 
-  if (input.terminal === "completed") {
+  if (input.active && input.retryInterruption) {
+    category = "active-retry-interruption";
+    confidence = "high";
+    providerEvidence = "retry-event";
+    reason = `willRetry=true provider interruption${retryInterruptionKind ? ` (${retryInterruptionKind})` : ""} was observed, but the command remains active and this is not a terminal failure`;
+  } else if (input.terminal === "completed") {
     category = "completed";
     confidence = "high";
     reason = "command completed successfully";
@@ -232,13 +242,16 @@ function terminalClassificationFromEvidence(input: TerminalClassificationInput):
   return {
     category,
     confidence,
+    active: input.active,
     providerEvidence,
-    providerInterruption: providerEvidence === "failure-kind" || providerEvidence === "observed-transport-disconnect" ? providerEvidence : "not-established",
+    providerInterruption: providerEvidence === "failure-kind" || providerEvidence === "observed-transport-disconnect" || providerEvidence === "retry-event" ? providerEvidence : "not-established",
     providerInterruptionKnown: providerEvidence === "failure-kind",
     providerInterruptionReason: providerEvidence === "failure-kind"
       ? "provider-specific failureKind is authoritative"
       : providerEvidence === "observed-transport-disconnect"
         ? "transport disconnect was observed, but current events cannot distinguish provider outage from runner/backend shutdown during timeout"
+        : providerEvidence === "retry-event"
+          ? "provider interruption was observed with willRetry=true; current command liveness decides whether work is still active"
         : providerEvidence === "insufficient"
           ? "no provider-specific error or disconnect evidence was recorded"
           : null,
@@ -249,6 +262,9 @@ function terminalClassificationFromEvidence(input: TerminalClassificationInput):
     timeoutState,
     transportDisconnectObserved: Boolean(input.transportDisconnect),
     transportDisconnectSeq: input.transportDisconnect?.seq ?? null,
+    retryInterruptionObserved: Boolean(input.retryInterruption),
+    retryInterruptionSeq: input.retryInterruption?.seq ?? null,
+    retryInterruptionKind,
     lastActivityKind: stringJsonValue(input.lastActivity?.activityKind),
     lastActivitySeq: numberJsonValue(input.lastActivity?.sourceSeq),
     commandId: input.command?.id ?? null,
@@ -353,6 +369,10 @@ function latestTransportDisconnect(events: RunEvent[]): RunEvent | null {
   }) ?? null;
 }
 
+function latestRetryInterruption(events: RunEvent[]): RunEvent | null {
+  return [...events].reverse().find((event) => event.type === "error" && event.payload.willRetry === true && isFailureKind(event.payload.failureKind)) ?? null;
+}
+
 function livenessActivitySummary(event: RunEvent | null, nowMs: number): JsonRecord | null {
   if (!event) return null;
   return {
@@ -558,9 +578,10 @@ function eventsForCommand(events: RunEvent[], commandId: string): RunEvent[] {
   return scoped.length > 0 ? scoped : events;
 }
 
-function failureKindFromEvents(events: RunEvent[]): FailureKind | null {
+function failureKindFromEvents(events: RunEvent[], options: { includeRetry: boolean }): FailureKind | null {
   for (const event of [...events].reverse()) {
     const value = event.payload.failureKind;
+    if (event.type === "error" && event.payload.willRetry === true && !options.includeRetry) continue;
     if (isFailureKind(value)) return value;
   }
   return null;
@@ -568,7 +589,7 @@ function failureKindFromEvents(events: RunEvent[]): FailureKind | null {
 
 function resultFailureKind(run: RunRecord, command: CommandRecord | null, events: RunEvent[], jobs: RunnerJobRecord[], terminal: TerminalStatus | null): FailureKind | null {
   if (terminal === "completed") return null;
-  return failureKindValue(run.failureKind) ?? failureKindFromEvents(events) ?? failureKindFromRunnerJobs(jobs);
+  return failureKindValue(run.failureKind) ?? failureKindFromEvents(events, { includeRetry: terminal !== null }) ?? failureKindFromRunnerJobs(jobs);
 }
 
 function failureKindFromRunnerJobs(jobs: RunnerJobRecord[]): FailureKind | null {
diff --git a/src/mgr/server.ts b/src/mgr/server.ts
index 5b00818..ad48694 100644
--- a/src/mgr/server.ts
+++ b/src/mgr/server.ts
@@ -213,6 +213,9 @@ function compactTerminalClassification(record: JsonRecord): JsonRecord {
     providerInterruption: stringJsonValue(record.providerInterruption),
     providerInterruptionKnown: record.providerInterruptionKnown === true,
     providerInterruptionReason: boundedJsonString(record.providerInterruptionReason, 240),
+    retryInterruptionObserved: record.retryInterruptionObserved === true,
+    retryInterruptionSeq: numberJsonValue(record.retryInterruptionSeq),
+    retryInterruptionKind: stringJsonValue(record.retryInterruptionKind),
     hardTimeout: record.hardTimeout === true,
     idleTimeout: record.idleTimeout === true,
     timeoutKind: stringJsonValue(record.timeoutKind),