diff --git a/hermes_cli/main.py b/hermes_cli/main.py
index 7d4a4a924..72d660bac 100644
--- a/hermes_cli/main.py
+++ b/hermes_cli/main.py
@@ -3022,33 +3022,19 @@ def _restore_stashed_changes(
         print("\nYour stashed changes are preserved — nothing is lost.")
         print(f"  Stash ref: {stash_ref}")
 
-        # Ask before resetting (if interactive)
-        do_reset = True
-        if prompt_user:
-            print("\nReset working tree to clean state so Hermes can run?")
-            print("  (You can re-apply your changes later with: git stash apply)")
-            print("[Y/n] ", end="", flush=True)
-            response = input().strip().lower()
-            if response not in ("", "y", "yes"):
-                do_reset = False
-
-        if do_reset:
-            subprocess.run(
-                git_cmd + ["reset", "--hard", "HEAD"],
-                cwd=cwd,
-                capture_output=True,
-            )
-            print("Working tree reset to clean state.")
-        else:
-            print("Working tree left as-is (may have conflict markers).")
-            print("Resolve conflicts manually, then run: git stash drop")
-
-        print(f"Restore your changes with: git stash apply {stash_ref}")
-        # In non-interactive mode (gateway /update), don't abort — the code
-        # update itself succeeded, only the stash restore had conflicts.
-        # Aborting would report the entire update as failed.
-        if prompt_user:
-            sys.exit(1)
+        # Always reset to clean state — leaving conflict markers in source
+        # files makes hermes completely unrunnable (SyntaxError on import).
+        # The user's changes are safe in the stash for manual recovery.
+        subprocess.run(
+            git_cmd + ["reset", "--hard", "HEAD"],
+            cwd=cwd,
+            capture_output=True,
+        )
+        print("Working tree reset to clean state.")
+        print(f"Restore your changes later with: git stash apply {stash_ref}")
+        # Don't sys.exit — the code update itself succeeded, only the stash
+        # restore had conflicts.  Let cmd_update continue with pip install,
+        # skill sync, and gateway restart.
         return False
 
     stash_selector = _resolve_stash_selector(git_cmd, cwd, stash_ref)
diff --git a/tests/hermes_cli/test_update_autostash.py b/tests/hermes_cli/test_update_autostash.py
index f97c6c35f..dee8cc1fb 100644
--- a/tests/hermes_cli/test_update_autostash.py
+++ b/tests/hermes_cli/test_update_autostash.py
@@ -213,8 +213,12 @@ def test_restore_stashed_changes_keeps_going_when_drop_fails(monkeypatch, tmp_pa
     assert "git stash drop stash@{0}" in out
 
 
-def test_restore_stashed_changes_prompts_before_reset_on_conflict(monkeypatch, tmp_path, capsys):
-    """When conflicts occur interactively, user is prompted before reset."""
+def test_restore_stashed_changes_always_resets_on_conflict(monkeypatch, tmp_path, capsys):
+    """Conflicts always auto-reset (no prompt) and return False, even interactively.
+
+    Leaving conflict markers in source files makes hermes unrunnable (SyntaxError).
+    The stash is preserved for manual recovery; cmd_update continues normally.
+    """
     calls = []
 
     def fake_run(cmd, **kwargs):
@@ -230,45 +234,19 @@ def test_restore_stashed_changes_prompts_before_reset_on_conflict(monkeypatch, t
     monkeypatch.setattr(hermes_main.subprocess, "run", fake_run)
     monkeypatch.setattr("builtins.input", lambda: "y")
 
-    with pytest.raises(SystemExit, match="1"):
-        hermes_main._restore_stashed_changes(["git"], tmp_path, "abc123", prompt_user=True)
+    result = hermes_main._restore_stashed_changes(["git"], tmp_path, "abc123", prompt_user=True)
 
+    assert result is False
     out = capsys.readouterr().out
     assert "Conflicted files:" in out
     assert "hermes_cli/main.py" in out
     assert "stashed changes are preserved" in out
-    assert "Reset working tree to clean state" in out
     assert "Working tree reset to clean state" in out
+    assert "git stash apply abc123" in out
     reset_calls = [c for c, _ in calls if c[1:3] == ["reset", "--hard"]]
     assert len(reset_calls) == 1
 
 
-def test_restore_stashed_changes_user_declines_reset(monkeypatch, tmp_path, capsys):
-    """When user declines reset, working tree is left as-is."""
-    calls = []
-
-    def fake_run(cmd, **kwargs):
-        calls.append((cmd, kwargs))
-        if cmd[1:3] == ["stash", "apply"]:
-            return SimpleNamespace(stdout="", stderr="conflict\n", returncode=1)
-        if cmd[1:3] == ["diff", "--name-only"]:
-            return SimpleNamespace(stdout="cli.py\n", stderr="", returncode=0)
-        raise AssertionError(f"unexpected command: {cmd}")
-
-    monkeypatch.setattr(hermes_main.subprocess, "run", fake_run)
-    # First input: "y" to restore, second input: "n" to decline reset
-    inputs = iter(["y", "n"])
-    monkeypatch.setattr("builtins.input", lambda: next(inputs))
-
-    with pytest.raises(SystemExit, match="1"):
-        hermes_main._restore_stashed_changes(["git"], tmp_path, "abc123", prompt_user=True)
-
-    out = capsys.readouterr().out
-    assert "left as-is" in out
-    reset_calls = [c for c, _ in calls if c[1:3] == ["reset", "--hard"]]
-    assert len(reset_calls) == 0
-
-
 def test_restore_stashed_changes_auto_resets_non_interactive(monkeypatch, tmp_path, capsys):
     """Non-interactive mode auto-resets without prompting and returns False
     instead of sys.exit(1) so the update can continue (gateway /update path)."""