diff --git a/src/hooks/todo-continuation-enforcer/handler.test.ts b/src/hooks/todo-continuation-enforcer/handler.test.ts
new file mode 100644
index 000000000..692c1c456
--- /dev/null
+++ b/src/hooks/todo-continuation-enforcer/handler.test.ts
@@ -0,0 +1,90 @@
+/// <reference types="bun-types" />
+
+import { describe, expect, test } from "bun:test"
+
+import { createTodoContinuationHandler } from "./handler"
+import type { ContinuationProgressUpdate, SessionStateStore } from "./session-state"
+import type { SessionState } from "./types"
+
+function createRecordingStateStore(): {
+  readonly cancelCalls: string[]
+  readonly state: SessionState
+  readonly store: SessionStateStore
+} {
+  const state: SessionState = {
+    stagnationCount: 2,
+    consecutiveFailures: 1,
+    countdownStartedAt: Date.now(),
+    countdownTimer: 1 as never,
+  }
+  const cancelCalls: string[] = []
+  const progressUpdate: ContinuationProgressUpdate = {
+    previousStagnationCount: 0,
+    stagnationCount: 0,
+    hasProgressed: false,
+    progressSource: "none",
+  }
+
+  return {
+    cancelCalls,
+    state,
+    store: {
+      getState: () => state,
+      getExistingState: () => state,
+      startPruneInterval: () => {},
+      trackContinuationProgress: () => progressUpdate,
+      resetContinuationProgress: () => {},
+      cancelCountdown: (sessionID: string) => {
+        cancelCalls.push(sessionID)
+      },
+      cleanup: () => {},
+      cancelAllCountdowns: () => {},
+      shutdown: () => {},
+    },
+  }
+}
+
+describe("createTodoContinuationHandler", () => {
+  test("#given an active continuation countdown #when the session compacts #then it arms the compaction guard without cancelling the countdown", async () => {
+    // given
+    const sessionID = "ses_compaction_keeps_countdown"
+    const { cancelCalls, state, store } = createRecordingStateStore()
+    const handler = createTodoContinuationHandler({
+      ctx: {} as never,
+      sessionStateStore: store,
+    })
+
+    // when
+    await handler({ event: { type: "session.compacted", properties: { sessionID } } })
+
+    // then
+    expect(cancelCalls).toEqual([])
+    expect(state.recentCompactionEpoch).toBe(1)
+    expect(typeof state.recentCompactionAt).toBe("number")
+    expect(state.countdownStartedAt).toBeDefined()
+  })
+
+  test("#given an active continuation countdown #when an abort session error arrives #then it still cancels the countdown", async () => {
+    // given
+    const sessionID = "ses_abort_cancels_countdown"
+    const { cancelCalls, state, store } = createRecordingStateStore()
+    const handler = createTodoContinuationHandler({
+      ctx: {} as never,
+      sessionStateStore: store,
+    })
+
+    // when
+    await handler({
+      event: {
+        type: "session.error",
+        properties: { sessionID, error: { name: "MessageAbortedError" } },
+      },
+    })
+
+    // then
+    expect(cancelCalls).toEqual([sessionID])
+    expect(state.wasCancelled).toBe(true)
+    expect(state.stagnationCount).toBe(0)
+    expect(state.consecutiveFailures).toBe(0)
+  })
+})