diff --git a/src/tests/cli/permission-mode-retry-wiring.test.ts b/src/tests/cli/permission-mode-retry-wiring.test.ts
new file mode 100644
index 0000000..36a41b2
--- /dev/null
+++ b/src/tests/cli/permission-mode-retry-wiring.test.ts
@@ -0,0 +1,71 @@
+import { describe, expect, test } from "bun:test";
+import { readFileSync } from "node:fs";
+import { fileURLToPath } from "node:url";
+
+function readAppSource(): string {
+  const appPath = fileURLToPath(new URL("../../cli/App.tsx", import.meta.url));
+  return readFileSync(appPath, "utf-8");
+}
+
+describe("permission mode retry wiring", () => {
+  test("pins submission permission mode and defines a restore helper", () => {
+    const source = readAppSource();
+
+    const processStart = source.indexOf(
+      "const processConversation = useCallback(",
+    );
+    const processEnd = source.indexOf("const handleExit = useCallback(");
+    expect(processStart).toBeGreaterThan(-1);
+    expect(processEnd).toBeGreaterThan(processStart);
+
+    const segment = source.slice(processStart, processEnd);
+    expect(segment).toContain(
+      "const pinnedPermissionMode = uiPermissionModeRef.current;",
+    );
+    expect(segment).toContain("const restorePinnedPermissionMode = () => {");
+    expect(segment).toContain('if (pinnedPermissionMode === "plan") return;');
+    expect(segment).toContain(
+      "if (permissionMode.getMode() !== pinnedPermissionMode)",
+    );
+    expect(segment).toContain(
+      "if (uiPermissionModeRef.current !== pinnedPermissionMode)",
+    );
+  });
+
+  test("restores pinned mode before continuing conversation-busy retries", () => {
+    const source = readAppSource();
+
+    const start = source.indexOf(
+      'if (preStreamAction === "retry_conversation_busy") {',
+    );
+    const end = source.indexOf(
+      "// Retry pre-stream transient errors (429/5xx/network) with shared LLM retry budget",
+    );
+    expect(start).toBeGreaterThan(-1);
+    expect(end).toBeGreaterThan(start);
+
+    const segment = source.slice(start, end);
+    expect(segment).toContain("restorePinnedPermissionMode();");
+    expect(segment).toContain("buffersRef.current.interrupted = false;");
+    expect(segment).toContain("continue;");
+  });
+
+  test("restores pinned mode before continuing transient retries", () => {
+    const source = readAppSource();
+
+    const start = source.indexOf(
+      'if (preStreamAction === "retry_transient") {',
+    );
+    const end = source.indexOf(
+      "// Reset conversation busy retry counter on non-busy error",
+    );
+    expect(start).toBeGreaterThan(-1);
+    expect(end).toBeGreaterThan(start);
+
+    const segment = source.slice(start, end);
+    expect(segment).toContain("restorePinnedPermissionMode();");
+    expect(segment).toContain("buffersRef.current.interrupted = false;");
+    expect(segment).toContain("conversationBusyRetriesRef.current = 0;");
+    expect(segment).toContain("continue;");
+  });
+});