diff --git a/packages/loopover-engine/src/miner/iterate-policy.ts b/packages/loopover-engine/src/miner/iterate-policy.ts
index 8c7aa3f665..282a04280a 100644
--- a/packages/loopover-engine/src/miner/iterate-policy.ts
+++ b/packages/loopover-engine/src/miner/iterate-policy.ts
@@ -71,14 +71,20 @@ export type IterationState = {
   /** 1-indexed count of iterations attempted so far, INCLUDING this one. */
   iterationNumber: number;
   /** Hard ceiling enforced INSIDE this policy (#2333's own deliverable: not left to an external caller to
-   *  remember to enforce). `iterationNumber >= maxIterations` abandons regardless of self-review outcome. */
+   *  remember to enforce). `iterationNumber >= maxIterations` abandons when the self-review has NOT reached a
+   *  clean pass; a clean pass at or past the ceiling still hands off (subject to `autonomyLevel`), because the
+   *  `pass` branch precedes both ceilings in `decideNextActionWithReason`'s numbered precedence list -- see
+   *  that list for the one canonical statement of the ladder. */
   maxIterations: number;
   /** True when the loop's own cumulative cost ceiling (e.g. total driver turns spent across every iteration of
    *  this attempt so far, not just this one) has been reached or exceeded -- the loop mechanics' (#2333) OWN
    *  "max-cost ceiling enforced inside the loop" deliverable, alongside the iteration ceiling above. This
    *  policy has no notion of what "cost" means; the caller computes the boolean from whatever cost signal it
-   *  tracks. Optional and defaults to not-reached, so `IterationState` fixtures that predate this field remain
-   *  valid. */
+   *  tracks. Like the iteration ceiling, it abandons only when the self-review has NOT reached a clean pass; a
+   *  clean pass at or past the ceiling still hands off (subject to `autonomyLevel`), because the `pass` branch
+   *  precedes both ceilings in `decideNextActionWithReason`'s numbered precedence list -- see that list for the
+   *  one canonical statement of the ladder. Optional and defaults to not-reached, so `IterationState` fixtures
+   *  that predate this field remain valid. */
   costCeilingReached?: boolean | undefined;
   selfReview: SelfReviewOutcome;
   /** The prior iteration's `fail` blocker codes, for the no-progress detector -- `null` when there is no prior
diff --git a/packages/loopover-engine/test/iterate-policy.test.ts b/packages/loopover-engine/test/iterate-policy.test.ts
index 401135f8d9..62a3295b09 100644
--- a/packages/loopover-engine/test/iterate-policy.test.ts
+++ b/packages/loopover-engine/test/iterate-policy.test.ts
@@ -249,3 +249,35 @@ test("autonomy #6560: rejectionSignaled and an ambiguous self-review still win o
   );
   assert.equal(ambiguous.abandonReason, "self_review_ambiguous");
 });
+
+// #9997: the `maxIterations`/`costCeilingReached` field docs claimed the ceilings abandon "regardless of
+// self-review outcome", but the precedence list puts the `pass` branch (step 3) AHEAD of both ceilings
+// (steps 4-5), so a clean pass at or past a ceiling still hands off. These pin that precedence end to end so
+// a future reordering fails the suite instead of silently discarding a passing attempt.
+test("#9997: a clean pass AT the iteration ceiling still hands off (pass precedes the ceiling)", () => {
+  const decision = decideNextActionWithReason(passingState({ iterationNumber: 5, maxIterations: 5 }));
+  assert.equal(decision.action, "handoff");
+  assert.equal(decision.abandonReason, undefined);
+});
+
+test("#9997: a clean pass with the cost ceiling reached still hands off", () => {
+  const decision = decideNextActionWithReason(passingState({ costCeilingReached: true }));
+  assert.equal(decision.action, "handoff");
+  assert.equal(decision.abandonReason, undefined);
+});
+
+test("#9997: a clean pass with BOTH ceilings reached still hands off", () => {
+  const decision = decideNextActionWithReason(passingState({ iterationNumber: 5, maxIterations: 5, costCeilingReached: true }));
+  assert.equal(decision.action, "handoff");
+  assert.equal(decision.abandonReason, undefined);
+});
+
+test("#9997: the two branches that DO win over a pass still do, pinning the ladder end to end", () => {
+  // rejectionSignaled (step 1) beats a pass...
+  const rejected = decideNextActionWithReason(passingState({ rejectionSignaled: true }));
+  assert.equal(rejected.abandonReason, "rejection_signaled");
+  // ...and autonomy "observe" narrows the pass->handoff transition to an abandon, NOT max_iterations_reached,
+  // even at a reached ceiling (the pass branch is entered first, and observe abandons inside it).
+  const observed = decideNextActionWithReason(passingState({ autonomyLevel: "observe", iterationNumber: 5, maxIterations: 5 }));
+  assert.equal(observed.abandonReason, "autonomy_observe_only");
+});
diff --git a/test/unit/engine-iterate-policy-autonomy.test.ts b/test/unit/engine-iterate-policy-autonomy.test.ts
index a24f24f472..5a2719de23 100644
--- a/test/unit/engine-iterate-policy-autonomy.test.ts
+++ b/test/unit/engine-iterate-policy-autonomy.test.ts
@@ -114,4 +114,18 @@ describe("autonomy never overrides the higher-precedence ladder steps (#6560)",
       expect(noProgress.abandonReason).toBe("no_progress");
     },
   );
+
+  it("#9997: a clean pass at or past a ceiling still hands off — the pass branch precedes both ceilings", () => {
+    // The field docs used to claim the ceilings abandon "regardless of self-review outcome"; the precedence
+    // list (step 3 before steps 4-5) is the real contract, so a clean pass wins over a reached ceiling.
+    for (const state of [
+      passingState({ iterationNumber: 5, maxIterations: 5 }),
+      passingState({ costCeilingReached: true }),
+      passingState({ iterationNumber: 5, maxIterations: 5, costCeilingReached: true }),
+    ]) {
+      const decision = decideNextActionWithReason(state);
+      expect(decision.action).toBe("handoff");
+      expect(decision.abandonReason).toBeUndefined();
+    }
+  });
 });