@@ -801,7 +801,7 @@ describe("createPruningCompactor — consolidated handoff (CL-7521)", () => {
     expect(result.record.reason).toBe("no compaction needed");
   });
 
-  test("failing summarizer keeps prior context; a later success writes one handoff", async () => {
+  test("failing summarizer folds with a statistics-only stub; a later success writes one handoff", async () => {
     const source: InferenceSource = {
       id: "test",
       provider: "openai",
@@ -825,10 +825,14 @@ describe("createPruningCompactor — consolidated handoff (CL-7521)", () => {
     });
     const turns = grow([], 16, "fail");
     const result1 = await compactor.apply(turns, mockStrategyCtx);
-    expect(result1.output).toBe(turns);
-    expect(result1.record.reason).toBe("summarize failed");
-    expect(firstText(defined(result1.output[0]))).not.toContain(
-      COMPACTED_PREFIX,
+    expect(result1.output).not.toBe(turns);
+    expect(result1.record.reason).toContain("statistics-only stub");
+    expect(result1.record.decisions.summarizeFailed).toBe(1);
+    expect(result1.record.decisions.summarizeFailureKind).toBe("failed");
+    expect(compactedTurns(result1.output)).toHaveLength(1);
+    const stubHandoff = defined(defined(result1.blobs)[0]);
+    expect(new TextDecoder().decode(stubHandoff.bytes)).toContain(
+      "Turns compacted:",
     );
 
     const result2 = await compactor.apply(
@@ -839,8 +843,11 @@ describe("createPruningCompactor — consolidated handoff (CL-7521)", () => {
     // CL-8744: the narrative lives in the fat handoff file, not the prompt.
     // The live output carries only the thin spine plus its pointer.
     expect(allText(result2.output)).not.toContain("UNIQUE_SUCCESS_SUMMARY");
-    const handoffBlob = defined(defined(result2.blobs)[0]);
-    expect(handoffBlob.contentType).toBe("text/markdown");
+    const handoffBlob = defined(
+      defined(result2.blobs).find(
+        (blob) => blob.contentType === "text/markdown",
+      ),
+    );
     expect(new TextDecoder().decode(handoffBlob.bytes)).toContain(
       "UNIQUE_SUCCESS_SUMMARY",
     );
@@ -849,6 +856,51 @@ describe("createPruningCompactor — consolidated handoff (CL-7521)", () => {
     );
     expect(hasConsecutiveSameRole(result2.output)).toBe(false);
   });
+
+  test("empty summarizer output folds with a statistics-only stub", async () => {
+    const source: InferenceSource = {
+      id: "test",
+      provider: "openai",
+      model: "test-model",
+      baseURL: "http://localhost:1",
+      credentialId: "test",
+    };
+    const notices: string[] = [];
+    const summarize = createModelSummarizer({
+      getSource: () => source,
+      complete: async () => "",
+      onFailure: (text) => notices.push(text),
+    });
+    const result = await smallCompactor({
+      keepRecentTurns: 2,
+      summaryMaxChars: 500,
+      summarize,
+    }).apply(grow([], 16, "empty"), mockStrategyCtx);
+    expect(result.record.decisions.summarizeFailed).toBe(1);
+    expect(result.record.decisions.summarizeFailureKind).toBe("empty");
+    expect(result.record.reason).toContain("statistics-only stub: empty");
+    expect(compactedTurns(result.output)).toHaveLength(1);
+    expect(notices).toHaveLength(1);
+    expect(notices[0]).toContain("statistics-only stub");
+    expect(notices[0]).toContain("empty");
+  });
+
+  test("an aborted summarizer keeps prior context instead of stubbing", async () => {
+    const err = new Error("aborted by lifecycle");
+    err.name = "AbortError";
+    const turns = grow([], 16, "abort");
+    const result = await smallCompactor({
+      keepRecentTurns: 2,
+      summaryMaxChars: 500,
+      summarize: async () => {
+        throw err;
+      },
+    }).apply(turns, mockStrategyCtx);
+    expect(result.output).toBe(turns);
+    expect(result.record.reason).toBe("summarize failed");
+    expect(result.record.decisions.summarizeFailed).toBe(1);
+    expect(result.record.decisions.summarizedTurnCount).toBeUndefined();
+  });
 });
 
 describe("buildTurnSummary via createPruningCompactor", () => {
 
@@ -16,7 +16,11 @@ import type {
 } from "@intx/types/runtime";
 import { ageImageBlocks } from "./attachment-store.js";
 import { buildHandoffFold, COMPACTED_PREFIX } from "./compaction-handoff.js";
-import type { SummaryContext } from "./summarizer.js";
+import {
+  classifySummarizerFailure,
+  type SummarizerFailureClass,
+  type SummaryContext,
+} from "./summarizer.js";
 import {
   extractContinuationFacts,
   verifyOrRepair,
@@ -1188,33 +1192,47 @@ export function createPruningCompactor(
           ? operatorCtx
           : { ...operatorCtx, priorSummary: priorSummaryForFold };
       let summary: string;
+      let summarizeFallback: SummarizerFailureClass | undefined;
+      const stubSummary = (): string =>
+        buildTurnSummary(
+          summarizedTurns,
+          cfg.summaryMaxChars,
+          anchorTurns.length,
+        );
       try {
         summary =
           cfg.summarize !== undefined
             ? await cfg.summarize(summarizedTurns, summaryCtx)
-            : buildTurnSummary(
-                summarizedTurns,
-                cfg.summaryMaxChars,
-                anchorTurns.length,
-              );
-      } catch {
-        return {
-          output: turns,
-          record: {
-            strategy: this.name,
-            version: this.version,
-            parameters: {
-              keepRecentTurns: cfg.keepRecentTurns,
-              compactionShape: shape,
-              ...extraInstructionParameter(cfg),
+            : stubSummary();
+      } catch (error) {
+        const failureClass = classifySummarizerFailure(error);
+        // A lifecycle abort is operator intent, not a lossy fallback: keep the
+        // prior context so the wrapCompactor race cannot land a stub fold.
+        if (failureClass === "aborted") {
+          return {
+            output: turns,
+            record: {
+              strategy: this.name,
+              version: this.version,
+              parameters: {
+                keepRecentTurns: cfg.keepRecentTurns,
+                compactionShape: shape,
+                ...extraInstructionParameter(cfg),
+              },
+              reason: "summarize failed",
+              decisions: {
+                summarizeFailed: 1,
+                agedImageCount: aged.agedImageCount,
+              },
             },
-            reason: "summarize failed",
-            decisions: {
-              summarizeFailed: 1,
-              agedImageCount: aged.agedImageCount,
-            },
-          },
-        };
+          };
+        }
+        summarizeFallback = failureClass;
+        summary = stubSummary();
+      }
+      if (summary.trim().length === 0) {
+        summarizeFallback = summarizeFallback ?? "empty";
+        summary = stubSummary();
       }
       if (summary.trim().length === 0) {
         return {
@@ -1337,7 +1355,11 @@ export function createPruningCompactor(
             compactionShape: shape,
             ...extraInstructionParameter(cfg),
           },
-          reason: `compacted ${summarizedTurns.length} turns, anchored ${anchorTurns.length}, keeping ${tailTurns.length} tail`,
+          reason: `compacted ${summarizedTurns.length} turns, anchored ${anchorTurns.length}, keeping ${tailTurns.length} tail${
+            summarizeFallback !== undefined
+              ? ` (statistics-only stub: ${summarizeFallback})`
+              : ""
+          }`,
           decisions: {
             summarizedTurnCount: summarizedTurns.length,
             anchorTurnCount: anchorTurns.length,
@@ -1352,6 +1374,12 @@ export function createPruningCompactor(
             agedImageCount: aged.agedImageCount,
             supersededReadCount: supersededReads.size,
             repeatedErrorCount: repeatedErrors.size,
+            ...(summarizeFallback !== undefined
+              ? {
+                  summarizeFailed: 1,
+                  summarizeFailureKind: summarizeFallback,
+                }
+              : {}),
             ...verifyDecisions,
           },
         },
 
@@ -32,6 +32,7 @@ import {
 import type { SubAgentSourcesConfig } from "./runtime-assembly.js";
 import type { Settings } from "../config/settings.js";
 import type { Telemetry } from "../telemetry/index.js";
+import { createModelSummarizer } from "./summarizer.js";
 import { generateSessionId, initSessionDir, sessionDir } from "./index.js";
 import type { PluginModule } from "../plugins/loader.js";
 
@@ -563,6 +564,61 @@ describe("createSessionPruningCompactor", () => {
   });
 });
 
+describe("createSessionPruningCompactor stub fallback", () => {
+  test("a summarizer stub fallback folds without success telemetry or onFolded", async () => {
+    const captured: { event: string }[] = [];
+    const folds: { turnsBefore: number; turnsAfter: number }[] = [];
+    const telemetry: Telemetry = {
+      enabled: true,
+      installationId: "test",
+      capture: (event) => {
+        captured.push({ event });
+      },
+      captureIntentional: () => false,
+      flush: async () => undefined,
+      discard: () => undefined,
+    };
+    const notices: string[] = [];
+    const summarize = createModelSummarizer({
+      getSource: () =>
+        ({
+          id: "test",
+          provider: "openai",
+          model: "test-model",
+          baseURL: "http://localhost:1",
+          credentialId: "test",
+        }) as never,
+      complete: async () => {
+        throw new Error("model unreachable");
+      },
+      onFailure: (text) => notices.push(text),
+    });
+    const compactor = createSessionPruningCompactor({
+      summarize,
+      telemetry,
+      onFolded: (info) => folds.push(info),
+      compactionShape: { tailBudgetTokens: 1 },
+    });
+    const now = Date.now();
+    const many = Array.from({ length: 8 }, (_, i) => ({
+      role: i % 2 === 0 ? "user" : "assistant",
+      content: [{ type: "text", text: `t${i}` }],
+      timestamp: now,
+    }));
+    const result = await compactor.apply(many as never, {
+      state: {} as never,
+      trigger: "test",
+    });
+    expect(result.record.decisions.summarizeFailed).toBe(1);
+    expect(result.record.reason).toContain("statistics-only stub");
+    expect(folds).toEqual([]);
+    expect(captured).toEqual([]);
+    expect(notices).toHaveLength(1);
+    expect(notices[0]).toContain("statistics-only stub");
+    expect(notices[0]).toContain("failed");
+  });
+});
+
 describe("buildCompactionContinuationMessage", () => {
   test("builds a content-less system inbound that re-enters the reactor", () => {
     const message = buildCompactionContinuationMessage();
 
@@ -475,8 +475,13 @@ export function createSessionPruningCompactor(
       // summarizedTurnCount is only set on the branch that actually folded
       // turns away. The other branch is a no-op (or image aging alone), and
       // reporting it as compaction would drag the duration and turn-count
-      // averages toward the runs where nothing happened.
-      if (result.record.decisions.summarizedTurnCount !== undefined) {
+      // averages toward the runs where nothing happened. A statistics-only
+      // stub fold is not a successful LLM reduction: the operator notice
+      // owns that path, and emitting the success event would relabel it.
+      if (
+        result.record.decisions.summarizedTurnCount !== undefined &&
+        result.record.decisions.summarizeFailed !== 1
+      ) {
         telemetry.capture("compaction", {
           mode: "llm",
           duration_ms: Date.now() - startedAt,
 
@@ -103,11 +103,16 @@ test("model summarizer throws on failure instead of substituting a stats stub",
 });
 
 test("model summarizer throws when the model returns empty text", async () => {
+  const notices: string[] = [];
   const summarize = createModelSummarizer({
     getSource: () => source,
     complete: async () => "",
+    onFailure: (text) => notices.push(text),
   });
   await expect(summarize(turns())).rejects.toThrow("empty text");
+  expect(notices).toHaveLength(1);
+  expect(notices[0]).toContain("statistics-only stub");
+  expect(notices[0]).toContain("empty");
 });
 
 test("model summarizer feeds archive payloads into the prompt instead of clipped turns", async () => {
@@ -261,6 +266,8 @@ test("a second 401 fails: retry budget is spent once", async () => {
   expect(calls).toBe(2);
   expect(refreshes).toBe(1);
   expect(notices).toHaveLength(1);
+  expect(notices[0]).toContain("statistics-only stub");
+  expect(notices[0]).toContain("auth");
   expect(notices[0]).toContain("401");
 });
 
@@ -356,6 +363,8 @@ test("final failure throws, notices once, and reports telemetry", async () => {
   await expect(summarize(turns())).rejects.toThrow("500");
   expect(calls).toBe(2);
   expect(notices).toHaveLength(1);
+  expect(notices[0]).toContain("statistics-only stub");
+  expect(notices[0]).toContain("provider");
   expect(notices[0]).toContain("500");
   expect(events).toHaveLength(1);
   expect(events[0]?.event).toBe("summarizer_failure");
 
@@ -4,9 +4,9 @@
 // replaces older turns with a summary. A deterministic stats blob ("Turns: N,
 // Tools called: ...") loses everything that matters for resuming work, so this
 // module produces a structured, workflow-aware narrative via a one-shot
-// inference call against the session's own model. Failure is fatal to that
-// compact cycle: the caller retains the prior context instead of substituting
-// a statistics-only stub.
+// inference call against the session's own model. Empty output or a failed
+// call throws so the compact cycle can substitute a statistics-only stub and
+// tell the operator, instead of logging the fold as a successful reduction.
 
 import { type } from "arktype";
 import { runInference, type Dependencies } from "@intx/inference";
@@ -388,7 +388,9 @@ function inferenceErrorCause(error: unknown): InferenceError | undefined {
   return parsed instanceof type.errors ? undefined : parsed;
 }
 
-function classifySummarizerFailure(error: unknown): SummarizerFailureClass {
+export function classifySummarizerFailure(
+  error: unknown,
+): SummarizerFailureClass {
   const cause = inferenceErrorCause(error);
   if (cause !== undefined) {
     if (cause.category === "aborted") return "aborted";
@@ -425,13 +427,15 @@ function failureNotice(
   error: Error,
 ): string {
   const firstLine = error.message.split("\n", 1)[0]?.trim() ?? "";
-  const reason =
-    firstLine.length > 0
+  const detail =
+    firstLine.length > 0 && firstLine !== failureClass
       ? firstLine.length > 140
         ? `${firstLine.slice(0, 140)}...`
         : firstLine
-      : failureClass;
-  return `Compaction summary failed — keeping prior context (${reason})`;
+      : undefined;
+  const kind =
+    detail !== undefined ? `${failureClass}: ${detail}` : failureClass;
+  return `Compaction summary failed — using a statistics-only stub (${kind})`;
 }
 
 export interface ModelSummarizerOptions {
@@ -467,8 +471,8 @@ export interface ModelSummarizerOptions {
 /**
  * Build a `summarize(turns, ctx)` function suitable for `CompactorConfig`.
  * Produces a structured, workflow-aware summary via the model. Empty output
- * or a failed call throws so the compact cycle can keep the prior context
- * instead of replacing it with a statistics-only stub.
+ * or a failed call throws so the compact cycle can substitute a
+ * statistics-only stub and surface that fallback to the operator.
  */
 export function createModelSummarizer(
   options: ModelSummarizerOptions,