diff --git a/crates/tui/src/core/engine.rs b/crates/tui/src/core/engine.rs
index d771bac3..6f89fe19 100644
--- a/crates/tui/src/core/engine.rs
+++ b/crates/tui/src/core/engine.rs
@@ -2798,10 +2798,10 @@ use self::lsp_hooks::edited_paths_for_tool;
 #[cfg(test)]
 use self::streaming::TOOL_CALL_START_MARKERS;
 use self::streaming::{
-    ContentBlockKind, FAKE_WRAPPER_NOTICE, MAX_STREAM_ERRORS_BEFORE_FAIL,
+    ContentBlockKind, FAKE_WRAPPER_NOTICE, MAX_STREAM_ERRORS_BEFORE_FAIL, MAX_STREAM_RETRIES,
     MAX_TRANSPARENT_STREAM_RETRIES, STREAM_MAX_CONTENT_BYTES, STREAM_MAX_DURATION_SECS,
-    ToolUseState, contains_fake_tool_wrapper, filter_tool_call_delta,
-    should_transparently_retry_stream,
+    ToolUseState, contains_fake_tool_wrapper, filter_tool_call_delta, should_resume_after_sleep,
+    should_transparently_retry_stream, sleep_gap_detected,
 };
 use self::tool_catalog::{
     CODE_EXECUTION_TOOL_NAME, JS_EXECUTION_TOOL_NAME, MULTI_TOOL_PARALLEL_NAME,
diff --git a/crates/tui/src/core/engine/streaming.rs b/crates/tui/src/core/engine/streaming.rs
index 692b3c2a..4f2fde3f 100644
--- a/crates/tui/src/core/engine/streaming.rs
+++ b/crates/tui/src/core/engine/streaming.rs
@@ -5,6 +5,7 @@
 //! policy, and scrubbers for text that looks like a forged tool-call wrapper.
 
 use crate::models::ToolCaller;
+use std::time::Duration;
 
 #[derive(Clone, Copy, Debug, PartialEq, Eq)]
 pub(super) enum ContentBlockKind {
@@ -66,6 +67,45 @@ pub(super) fn should_transparently_retry_stream(
     !any_content_received && transparent_attempts < MAX_TRANSPARENT_STREAM_RETRIES && !cancelled
 }
 
+/// Budget for re-issuing the whole request after a dead stream. Shared by the
+/// nothing-streamed outer retry (#103 Phase 3) and the sleep-resume retry
+/// (#2990).
+pub(super) const MAX_STREAM_RETRIES: u32 = 3;
+
+/// Wall-clock vs monotonic divergence above which we conclude the host slept
+/// mid-stream (#2990). `Instant` pauses during system sleep (CLOCK_UPTIME_RAW
+/// on macOS, CLOCK_MONOTONIC on Linux) while `SystemTime` keeps advancing, so
+/// a large positive gap can only come from a suspend/resume cycle — ordinary
+/// network flakes never produce one. Windows `Instant` may keep ticking
+/// through sleep, in which case this simply never fires (no behavior change).
+pub(super) const SLEEP_GAP_THRESHOLD: Duration = Duration::from_secs(10);
+
+/// True when the gap between wall-clock and monotonic elapsed time since the
+/// last stream progress says the host was suspended.
+pub(super) fn sleep_gap_detected(
+    monotonic_elapsed: Duration,
+    wallclock_elapsed: Duration,
+) -> bool {
+    wallclock_elapsed.saturating_sub(monotonic_elapsed) > SLEEP_GAP_THRESHOLD
+}
+
+/// Decide whether a failed stream should be silently re-issued because the
+/// host slept mid-turn (#2990).
+///
+/// Unlike the transparent retry (#103), this fires even after content has
+/// streamed: the partial output predates the sleep, the user was not
+/// watching, and re-running the identical request is the correct
+/// user-visible behavior. The double-billing concern that blocks ordinary
+/// post-content retries is accepted here because the alternative is a dead
+/// turn the user must re-prompt (and pay for) anyway.
+pub(super) fn should_resume_after_sleep(
+    sleep_detected: bool,
+    retry_attempts: u32,
+    cancelled: bool,
+) -> bool {
+    sleep_detected && retry_attempts < MAX_STREAM_RETRIES && !cancelled
+}
+
 pub(crate) const TOOL_CALL_START_MARKERS: [&str; 5] = [
     "[TOOL_CALL]",
     "<codewhale:tool_call",
diff --git a/crates/tui/src/core/engine/tests.rs b/crates/tui/src/core/engine/tests.rs
index 6ab042ab..212042c4 100644
--- a/crates/tui/src/core/engine/tests.rs
+++ b/crates/tui/src/core/engine/tests.rs
@@ -3701,6 +3701,71 @@ fn stream_retry_respects_cancellation() {
     );
 }
 
+// === #2990 sleep-resume policy ================================================
+
+#[test]
+fn sleep_gap_requires_wallclock_to_outrun_monotonic_clock() {
+    use std::time::Duration;
+    // No divergence: ordinary network failure, clocks agree.
+    assert!(
+        !super::sleep_gap_detected(Duration::from_secs(30), Duration::from_secs(30)),
+        "equal elapsed times must not register as a sleep gap"
+    );
+    // Divergence below the threshold: NTP slew / scheduling jitter.
+    assert!(
+        !super::sleep_gap_detected(Duration::from_secs(5), Duration::from_secs(14)),
+        "9s of divergence is below the 10s threshold"
+    );
+    // Divergence above the threshold: the host was suspended.
+    assert!(
+        super::sleep_gap_detected(Duration::from_secs(5), Duration::from_secs(16)),
+        "11s of divergence must register as a sleep gap"
+    );
+    // Wall clock went backwards (NTP step): saturating_sub → zero gap.
+    assert!(
+        !super::sleep_gap_detected(Duration::from_secs(60), Duration::from_secs(5)),
+        "wall clock behind monotonic must never register as a sleep gap"
+    );
+}
+
+#[test]
+fn sleep_resume_retries_even_after_content_streamed() {
+    // The whole point of #2990: unlike the #103 transparent retry, a
+    // detected sleep gap retries regardless of streamed content — the
+    // partial output predates the sleep and the user was not watching.
+    assert!(
+        super::should_resume_after_sleep(true, 0, false),
+        "detected sleep with full budget must resume"
+    );
+    assert!(
+        super::should_resume_after_sleep(true, super::MAX_STREAM_RETRIES - 1, false),
+        "detected sleep one short of the budget must still resume"
+    );
+}
+
+#[test]
+fn sleep_resume_requires_a_detected_gap() {
+    // Without a sleep gap this layer stays out of the way entirely, so the
+    // deliberate no-retry-after-content policy for ordinary flakes (#103)
+    // is preserved.
+    assert!(
+        !super::should_resume_after_sleep(false, 0, false),
+        "no sleep gap → never resume via this layer"
+    );
+}
+
+#[test]
+fn sleep_resume_respects_budget_and_cancellation() {
+    assert!(
+        !super::should_resume_after_sleep(true, super::MAX_STREAM_RETRIES, false),
+        "budget exhausted → surface the failure instead of looping"
+    );
+    assert!(
+        !super::should_resume_after_sleep(true, 0, true),
+        "cancelled turn must not be resumed behind the user's back"
+    );
+}
+
 #[test]
 fn stream_retry_threshold_relaxed_to_five() {
     // Case 1+4 from issue #103: the consecutive-error threshold for marking
diff --git a/crates/tui/src/core/engine/turn_loop.rs b/crates/tui/src/core/engine/turn_loop.rs
index 6e7d0691..53cdf927 100644
--- a/crates/tui/src/core/engine/turn_loop.rs
+++ b/crates/tui/src/core/engine/turn_loop.rs
@@ -69,14 +69,11 @@ impl Engine {
         let mut loop_guard = LoopGuard::default();
         let mut goal_continuations_this_turn = 0u32;
 
-        // Transparent stream-retry counter: when the chunked-transfer
-        // connection dies mid-stream and we got nothing useful out of it
-        // (no tool calls, no completed text), we silently re-issue the
-        // SAME request up to MAX_STREAM_RETRIES times before surfacing
-        // the failure to the user. This is the #103 Phase 3 retry that
-        // keeps long V4 thinking turns from being killed by transient
-        // proxy disconnects.
-        const MAX_STREAM_RETRIES: u32 = 3;
+        // Outer stream-retry counter: when the chunked-transfer connection
+        // dies mid-stream and either nothing useful was streamed (#103
+        // Phase 3) or the host slept mid-turn (#2990), we silently re-issue
+        // the SAME request up to MAX_STREAM_RETRIES times before surfacing
+        // the failure to the user.
         let mut stream_retry_attempts: u32 = 0;
 
         'turn_loop: loop {
@@ -468,6 +465,13 @@ impl Engine {
             // `stream_start` is reset on a transparent retry so the wall-clock
             // budget restarts with the fresh stream.
             let mut stream_start = Instant::now();
+            // #2990 sleep-resume bookkeeping: monotonic and wall-clock stamps
+            // of the last stream progress. `Instant` pauses across a host
+            // suspend while `SystemTime` does not, so a large divergence on
+            // the next error tells "machine slept" apart from "network died".
+            let mut last_progress_mono = Instant::now();
+            let mut last_progress_wall = std::time::SystemTime::now();
+            let mut sleep_resume_pending = false;
             let mut stream_content_bytes: usize = 0;
             let (chunk_timeout_secs, chunk_timeout) = stream_chunk_timeout_budget(&self.config);
             let max_duration = Duration::from_secs(STREAM_MAX_DURATION_SECS);
@@ -541,6 +545,8 @@ impl Engine {
 
                 let event = match event_result {
                     Ok(e) => {
+                        last_progress_mono = Instant::now();
+                        last_progress_wall = std::time::SystemTime::now();
                         // Flip on the first non-MessageStart event — that's
                         // the moment we cross from "stream not yet productive"
                         // (eligible for transparent retry) into "DeepSeek has
@@ -553,6 +559,27 @@ impl Engine {
                     Err(e) => {
                         stream_errors = stream_errors.saturating_add(1);
                         let message = self.decorate_auth_error_message(e.to_string());
+                        // #2990: wall-clock far ahead of the monotonic clock
+                        // since the last chunk means the host slept mid-stream.
+                        // The partial output predates the sleep and the user
+                        // was not watching — schedule a full request retry in
+                        // the post-loop block instead of failing the turn.
+                        let wall_elapsed = last_progress_wall
+                            .elapsed()
+                            .unwrap_or_else(|_| last_progress_mono.elapsed());
+                        if should_resume_after_sleep(
+                            sleep_gap_detected(last_progress_mono.elapsed(), wall_elapsed),
+                            stream_retry_attempts,
+                            self.cancel_token.is_cancelled(),
+                        ) {
+                            crate::logging::warn(format!(
+                                "Stream error after suspected system sleep ({:?} monotonic vs {:?} wall since last chunk); scheduling request retry: {message}",
+                                last_progress_mono.elapsed(),
+                                wall_elapsed,
+                            ));
+                            sleep_resume_pending = true;
+                            break;
+                        }
                         // #103: when the stream errors before any content was
                         // streamed AND we still have retry budget, transparently
                         // resend the request. DeepSeek has not billed for any
@@ -851,18 +878,37 @@ impl Engine {
                 && current_text_visible.trim().is_empty()
                 && current_thinking.trim().is_empty()
                 && !pending_message_complete;
-            if stream_died_with_nothing {
+            if stream_died_with_nothing || sleep_resume_pending {
                 if stream_retry_attempts < MAX_STREAM_RETRIES {
                     stream_retry_attempts = stream_retry_attempts.saturating_add(1);
-                    crate::logging::warn(format!(
-                        "Stream died with no content (attempt {stream_retry_attempts}/{MAX_STREAM_RETRIES}); retrying request"
-                    ));
-                    let _ = self
-                        .tx_event
-                        .send(Event::status(format!(
-                            "Connection interrupted; retrying ({stream_retry_attempts}/{MAX_STREAM_RETRIES})"
-                        )))
-                        .await;
+                    if sleep_resume_pending {
+                        crate::logging::warn(format!(
+                            "Resuming after system sleep (attempt {stream_retry_attempts}/{MAX_STREAM_RETRIES}); discarding partial output and retrying request"
+                        ));
+                        let _ = self
+                            .tx_event
+                            .send(Event::status(format!(
+                                "System sleep detected; connection lost — retrying request ({stream_retry_attempts}/{MAX_STREAM_RETRIES})"
+                            )))
+                            .await;
+                        // Finalize any partially-rendered assistant cell so
+                        // the retried stream renders fresh instead of
+                        // appending to the pre-sleep fragment.
+                        if pending_message_complete {
+                            let index = last_text_index.unwrap_or(0);
+                            let _ = self.tx_event.send(Event::MessageComplete { index }).await;
+                        }
+                    } else {
+                        crate::logging::warn(format!(
+                            "Stream died with no content (attempt {stream_retry_attempts}/{MAX_STREAM_RETRIES}); retrying request"
+                        ));
+                        let _ = self
+                            .tx_event
+                            .send(Event::status(format!(
+                                "Connection interrupted; retrying ({stream_retry_attempts}/{MAX_STREAM_RETRIES})"
+                            )))
+                            .await;
+                    }
                     // Don't preserve the per-stream `turn_error` — we're
                     // about to retry, and a successful retry should not
                     // surface the transient error as the turn outcome.