diff --git a/gitnexus/src/config/ignore-service.ts b/gitnexus/src/config/ignore-service.ts
index 17b9d14bd..02a26068e 100644
--- a/gitnexus/src/config/ignore-service.ts
+++ b/gitnexus/src/config/ignore-service.ts
@@ -87,6 +87,7 @@ const DEFAULT_IGNORE_LIST = new Set([
   '.generated',
   'generated',
   'auto-generated',
+  'monaco-workers', // Monaco editor web-worker bundles generated for browser runtime
   '.terraform',
   '.serverless',
 
@@ -323,14 +324,6 @@ export const shouldIgnorePath = (filePath: string): boolean => {
     }
   }
 
-  // Ignore hidden files (starting with .)
-  if (fileName.startsWith('.') && fileName !== '.') {
-    // But allow some important config files
-    const allowedDotFiles = ['.env', '.gitignore']; // Already in IGNORED_FILES, so this is redundant
-    // Actually, let's NOT ignore all dot files - many are important configs
-    // Just rely on the explicit lists above
-  }
-
   // Ignore files that look like generated/bundled code
   if (
     fileNameLower.includes('.bundle.') ||
diff --git a/gitnexus/src/core/ingestion/workers/worker-pool.ts b/gitnexus/src/core/ingestion/workers/worker-pool.ts
index d29b352ab..5c326e972 100644
--- a/gitnexus/src/core/ingestion/workers/worker-pool.ts
+++ b/gitnexus/src/core/ingestion/workers/worker-pool.ts
@@ -598,6 +598,14 @@ export const createWorkerPool = (
   const poolOptions = resolveWorkerPoolOptions(options, size);
   const spawnWorker = options?.workerFactory ?? ((url: URL) => new Worker(url));
   const workers: (Worker | undefined)[] = new Array(size);
+  type RetiredWorkerRecord = {
+    worker: Worker;
+    workerIndex: number;
+    reason: string;
+    cleanup: () => void;
+    terminate: () => Promise<void>;
+  };
+  const retiredWorkers = new Set<RetiredWorkerRecord>();
   const respawnCount: number[] = new Array(size).fill(0);
   const activeSlots: Set<number> = new Set();
   // Layer 3 (quarantine): tracked via the dedicated `quarantine.ts`
@@ -625,6 +633,17 @@ export const createWorkerPool = (
   let poolBroken = false;
   let poolFailure: Error | undefined;
 
+  const terminateTrackedWorkers = async (
+    liveWorkers: readonly (Worker | undefined)[],
+  ): Promise<void> => {
+    const retired = Array.from(retiredWorkers);
+    await Promise.all([
+      ...liveWorkers.map((worker) => worker?.terminate().catch(() => undefined)),
+      ...retired.map((record) => record.terminate()),
+    ]);
+    retiredWorkers.clear();
+  };
+
   for (let i = 0; i < size; i++) {
     workers[i] = spawnWorker(workerUrl);
     activeSlots.add(i);
@@ -755,10 +774,88 @@ export const createWorkerPool = (
         onProgress(next);
       };
 
-      const replaceWorker = async (workerIndex: number): Promise<boolean> => {
+      type WorkerRemovalMode = 'terminate' | 'retire';
+
+      const retireWorkerAfterTimeout = (
+        worker: Worker,
+        workerIndex: number,
+        reason: string,
+      ): void => {
+        let cleaned = false;
+        let terminateStarted = false;
+
+        function cleanupRetired() {
+          if (cleaned) return;
+          cleaned = true;
+          worker.removeListener('message', onRetiredMessage);
+          worker.removeListener('error', onRetiredError);
+          worker.removeListener('exit', onRetiredExit);
+          worker.removeListener('messageerror', onRetiredMessageError);
+          retiredWorkers.delete(record);
+        }
+
+        async function terminateRetired() {
+          if (terminateStarted) return;
+          terminateStarted = true;
+          cleanupRetired();
+          await worker.terminate().catch(() => undefined);
+        }
+
+        function terminateWhenBackInJs() {
+          void terminateRetired();
+        }
+
+        function onRetiredMessage(raw: unknown) {
+          if (raw === null || typeof raw !== 'object') return;
+          const type = (raw as { type?: unknown }).type;
+          if (type === 'sub-batch-done' || type === 'result' || type === 'error') {
+            terminateWhenBackInJs();
+          }
+        }
+
+        const onRetiredError = () => cleanupRetired();
+        const onRetiredExit = () => cleanupRetired();
+        const onRetiredMessageError = () => terminateWhenBackInJs();
+        const record: RetiredWorkerRecord = {
+          worker,
+          workerIndex,
+          reason,
+          cleanup: cleanupRetired,
+          terminate: terminateRetired,
+        };
+        retiredWorkers.add(record);
+        worker.on('message', onRetiredMessage);
+        worker.once('error', onRetiredError);
+        worker.once('exit', onRetiredExit);
+        worker.once('messageerror', onRetiredMessageError);
+        (worker as Worker & { unref?: () => void }).unref?.();
+        logger.warn(
+          { workerIndex, reason },
+          `Worker ${workerIndex} timed out; retiring without immediate terminate to avoid aborting native parser state.`,
+        );
+      };
+
+      const removeWorkerFromSlot = async (
+        workerIndex: number,
+        mode: WorkerRemovalMode,
+        reason: string,
+      ): Promise<void> => {
         const existing = workers[workerIndex];
-        await existing?.terminate().catch(() => undefined);
         workers[workerIndex] = undefined;
+        if (!existing) return;
+        if (mode === 'retire') {
+          retireWorkerAfterTimeout(existing, workerIndex, reason);
+          return;
+        }
+        await existing.terminate().catch(() => undefined);
+      };
+
+      const replaceWorker = async (
+        workerIndex: number,
+        mode: WorkerRemovalMode = 'terminate',
+        reason = 'replacing worker',
+      ): Promise<boolean> => {
+        await removeWorkerFromSlot(workerIndex, mode, reason);
         if (stopped) return false;
         const replacement = spawnWorker(workerUrl);
         try {
@@ -803,7 +900,7 @@ export const createWorkerPool = (
         const liveWorkers = workers.slice();
         for (let i = 0; i < workers.length; i++) workers[i] = undefined;
         activeSlots.clear();
-        void Promise.all(liveWorkers.map((worker) => worker?.terminate().catch(() => undefined)));
+        void terminateTrackedWorkers(liveWorkers);
       };
 
       const maybeDone = () => {
@@ -893,6 +990,7 @@ export const createWorkerPool = (
         workerIndex: number,
         reason: string,
         excludePaths: readonly string[],
+        removalMode: WorkerRemovalMode = 'terminate',
       ) => {
         if (stopped) return;
         consecutiveFailuresPerSlot[workerIndex]++;
@@ -921,9 +1019,7 @@ export const createWorkerPool = (
             },
             `Worker ${workerIndex} exceeded respawn budget; dropping slot.`,
           );
-          const dead = workers[workerIndex];
-          await dead?.terminate().catch(() => undefined);
-          workers[workerIndex] = undefined;
+          await removeWorkerFromSlot(workerIndex, removalMode, reason);
           activeSlots.delete(workerIndex);
           if (activeSlots.size === 0) {
             tripBreaker(
@@ -945,7 +1041,7 @@ export const createWorkerPool = (
           },
           `Worker ${workerIndex} died; respawning slot (attempt ${respawnCount[workerIndex]}/${poolOptions.maxRespawnsPerSlot}).`,
         );
-        const respawned = await replaceWorker(workerIndex);
+        const respawned = await replaceWorker(workerIndex, removalMode, reason);
         if (!respawned) {
           activeSlots.delete(workerIndex);
           if (activeSlots.size === 0) {
@@ -1211,7 +1307,12 @@ export const createWorkerPool = (
                   activeWorkers--;
                   busySlots.delete(workerIndex);
                   requeueRemainder(job, decision.excludePaths);
-                  await handleWorkerDeath(workerIndex, decision.reason, decision.excludePaths);
+                  await handleWorkerDeath(
+                    workerIndex,
+                    decision.reason,
+                    decision.excludePaths,
+                    'retire',
+                  );
                   if (stopped) return;
                   if (activeSlots.has(workerIndex)) runWorker(workerIndex);
                   wakeIdleSlots();
@@ -1255,9 +1356,11 @@ export const createWorkerPool = (
                       },
                       `Worker ${workerIndex} hit consecutive-failure threshold on idle-timeout retry; tripping circuit breaker.`,
                     );
-                    const dead = workers[workerIndex];
-                    await dead?.terminate().catch(() => undefined);
-                    workers[workerIndex] = undefined;
+                    await removeWorkerFromSlot(
+                      workerIndex,
+                      'retire',
+                      'idle-timeout retry consecutive-failure threshold',
+                    );
                     activeSlots.delete(workerIndex);
                     tripBreaker(
                       new WorkerPoolDispatchError(
@@ -1278,12 +1381,18 @@ export const createWorkerPool = (
                       },
                       `Worker ${workerIndex} exceeded respawn budget during idle-timeout retry; dropping slot.`,
                     );
-                    const dead = workers[workerIndex];
-                    await dead?.terminate().catch(() => undefined);
-                    workers[workerIndex] = undefined;
+                    await removeWorkerFromSlot(
+                      workerIndex,
+                      'retire',
+                      'idle-timeout retry respawn budget exhausted',
+                    );
                     activeSlots.delete(workerIndex);
                   } else {
-                    const respawned = await replaceWorker(workerIndex);
+                    const respawned = await replaceWorker(
+                      workerIndex,
+                      'retire',
+                      'idle-timeout retry',
+                    );
                     if (!respawned) {
                       activeSlots.delete(workerIndex);
                     }
@@ -1482,7 +1591,7 @@ export const createWorkerPool = (
     // exception when this is called from `runChunkedParseAndResolve`'s
     // finally block — masking the real failure and leaving `workers[]`
     // populated with dead references because the lines below never run.
-    await Promise.all(workers.map((w) => w?.terminate().catch(() => undefined)));
+    await terminateTrackedWorkers(workers);
     workers.length = 0;
     activeSlots.clear();
   };
diff --git a/gitnexus/test/unit/ignore-service.test.ts b/gitnexus/test/unit/ignore-service.test.ts
index cd5ebdb4e..9f989bbcc 100644
--- a/gitnexus/test/unit/ignore-service.test.ts
+++ b/gitnexus/test/unit/ignore-service.test.ts
@@ -175,6 +175,11 @@ describe('shouldIgnorePath', () => {
       expect(shouldIgnorePath('src/api.generated.ts')).toBe(true);
     });
 
+    it('ignores generated Monaco editor worker bundles', () => {
+      expect(shouldIgnorePath('public/monaco-workers/json.worker.js')).toBe(true);
+      expect(shouldIgnorePath('keep-ui/public/monaco-workers/125.js')).toBe(true);
+    });
+
     it('ignores TypeScript declaration files', () => {
       expect(shouldIgnorePath('types/index.d.ts')).toBe(true);
     });
@@ -217,6 +222,7 @@ describe('isHardcodedIgnoredDirectory', () => {
     expect(isHardcodedIgnoredDirectory('node_modules')).toBe(true);
     expect(isHardcodedIgnoredDirectory('.git')).toBe(true);
     expect(isHardcodedIgnoredDirectory('dist')).toBe(true);
+    expect(isHardcodedIgnoredDirectory('monaco-workers')).toBe(true);
     expect(isHardcodedIgnoredDirectory('__pycache__')).toBe(true);
   });
 
@@ -318,6 +324,13 @@ describe('.gitnexusignore negation overrides hardcoded DEFAULT_IGNORE_LIST (#771
     expect(filter.childrenIgnored(mkPath('.git'))).toBe(true);
   });
 
+  it('explicit negation can still opt into generated Monaco worker bundles', async () => {
+    await fs.writeFile(path.join(tmpDir, '.gitnexusignore'), '!public/monaco-workers/\n');
+    const filter = await createIgnoreFilter(tmpDir);
+    expect(filter.childrenIgnored(mkPath('public/monaco-workers'))).toBe(false);
+    expect(filter.ignored(mkPath('public/monaco-workers/json.worker.js'))).toBe(false);
+  });
+
   it('standard `.gitignore` rules (no negation) still layer on top of hardcoded', async () => {
     // Pre-#771 behaviour: if .gitnexusignore says `my-dir/`, that dir
     // is ignored in addition to the hardcoded list. Non-negation
diff --git a/gitnexus/test/unit/worker-pool-timeout-retire.test.ts b/gitnexus/test/unit/worker-pool-timeout-retire.test.ts
new file mode 100644
index 000000000..0579ae6d6
--- /dev/null
+++ b/gitnexus/test/unit/worker-pool-timeout-retire.test.ts
@@ -0,0 +1,180 @@
+import { describe, it, expect, beforeEach, afterEach } from 'vitest';
+import { EventEmitter } from 'node:events';
+import fs from 'node:fs';
+import os from 'node:os';
+import path from 'node:path';
+import { pathToFileURL } from 'node:url';
+
+import { createWorkerPool } from '../../src/core/ingestion/workers/worker-pool.js';
+
+type FirstWorkerBehavior = 'stall' | 'delayed-safe-return';
+
+class TimeoutThenHealthyWorker extends EventEmitter {
+  static instances: TimeoutThenHealthyWorker[] = [];
+  static firstWorkerBehavior: FirstWorkerBehavior = 'stall';
+  static safeReturnDelayMs = 40;
+
+  readonly id: number;
+  terminateCalls = 0;
+  unrefCalls = 0;
+  private currentPaths: string[] = [];
+
+  constructor() {
+    super();
+    this.id = TimeoutThenHealthyWorker.instances.length;
+    TimeoutThenHealthyWorker.instances.push(this);
+    queueMicrotask(() => this.emit('message', { type: 'ready' }));
+  }
+
+  postMessage(msg: unknown): void {
+    if (msg === null || typeof msg !== 'object') return;
+    const type = (msg as { type?: unknown }).type;
+    if (type === 'sub-batch') {
+      const files = (msg as { files?: Array<{ path: string }> }).files ?? [];
+      this.currentPaths = files.map((file) => file.path);
+      if (this.id === 0) {
+        if (TimeoutThenHealthyWorker.firstWorkerBehavior === 'delayed-safe-return') {
+          setTimeout(() => {
+            this.emit('message', { type: 'sub-batch-done' });
+          }, TimeoutThenHealthyWorker.safeReturnDelayMs);
+        }
+        return;
+      }
+      queueMicrotask(() => {
+        this.emit('message', { type: 'progress', filesProcessed: this.currentPaths.length });
+        this.emit('message', { type: 'sub-batch-done' });
+      });
+      return;
+    }
+    if (type === 'flush') {
+      const paths = this.currentPaths.slice();
+      queueMicrotask(() => this.emit('message', { type: 'result', data: { paths } }));
+    }
+  }
+
+  async terminate(): Promise<number> {
+    this.terminateCalls++;
+    this.emit('exit', 0);
+    return 0;
+  }
+
+  unref(): void {
+    this.unrefCalls++;
+  }
+}
+
+const waitFor = async (
+  predicate: () => boolean,
+  message: string,
+  timeoutMs = 250,
+): Promise<void> => {
+  const start = Date.now();
+  while (Date.now() - start < timeoutMs) {
+    if (predicate()) return;
+    await new Promise((resolve) => setTimeout(resolve, 5));
+  }
+  throw new Error(message);
+};
+
+let tempDir: string;
+let workerUrl: URL;
+
+beforeEach(() => {
+  TimeoutThenHealthyWorker.instances = [];
+  TimeoutThenHealthyWorker.firstWorkerBehavior = 'stall';
+  TimeoutThenHealthyWorker.safeReturnDelayMs = 40;
+  tempDir = fs.mkdtempSync(path.join(os.tmpdir(), 'gitnexus-worker-timeout-retire-'));
+  const workerPath = path.join(tempDir, 'fake-worker.js');
+  fs.writeFileSync(workerPath, '// fake worker path for createWorkerPool');
+  workerUrl = pathToFileURL(workerPath) as URL;
+});
+
+afterEach(() => {
+  fs.rmSync(tempDir, { recursive: true, force: true });
+});
+
+describe('worker pool timeout retirement', () => {
+  it('does not immediately terminate a worker that timed out inside native parsing', async () => {
+    const pool = createWorkerPool(workerUrl, 1, {
+      subBatchIdleTimeoutMs: 20,
+      maxTimeoutRetries: 1,
+      timeoutBackoffFactor: 2,
+      workerFactory: () =>
+        new TimeoutThenHealthyWorker() as unknown as import('node:worker_threads').Worker,
+    });
+
+    try {
+      const results = await pool.dispatch<{ path: string; content: string }, { paths: string[] }>([
+        { path: 'src/native-stall.ts', content: 'const x = 1;' },
+      ]);
+
+      expect(results).toEqual([{ paths: ['src/native-stall.ts'] }]);
+      expect(TimeoutThenHealthyWorker.instances.length).toBeGreaterThanOrEqual(2);
+      expect(TimeoutThenHealthyWorker.instances[0].unrefCalls).toBe(1);
+      expect(TimeoutThenHealthyWorker.instances[0].terminateCalls).toBe(0);
+
+      await pool.terminate();
+
+      expect(TimeoutThenHealthyWorker.instances[0].terminateCalls).toBe(1);
+    } finally {
+      await pool.terminate();
+    }
+  });
+
+  it('terminates a retired worker once it returns to a JS-visible safe point', async () => {
+    TimeoutThenHealthyWorker.firstWorkerBehavior = 'delayed-safe-return';
+    TimeoutThenHealthyWorker.safeReturnDelayMs = 35;
+    const pool = createWorkerPool(workerUrl, 1, {
+      subBatchIdleTimeoutMs: 10,
+      maxTimeoutRetries: 1,
+      timeoutBackoffFactor: 2,
+      workerFactory: () =>
+        new TimeoutThenHealthyWorker() as unknown as import('node:worker_threads').Worker,
+    });
+
+    try {
+      const results = await pool.dispatch<{ path: string; content: string }, { paths: string[] }>([
+        { path: 'src/native-stall.ts', content: 'const x = 1;' },
+      ]);
+
+      expect(results).toEqual([{ paths: ['src/native-stall.ts'] }]);
+      expect(TimeoutThenHealthyWorker.instances[0].unrefCalls).toBe(1);
+      await waitFor(
+        () => TimeoutThenHealthyWorker.instances[0]?.terminateCalls === 1,
+        'Timed out waiting for retired worker to terminate after safe signal',
+      );
+
+      await pool.terminate();
+
+      expect(TimeoutThenHealthyWorker.instances[0].terminateCalls).toBe(1);
+    } finally {
+      await pool.terminate();
+    }
+  });
+
+  it('terminates retired workers when the circuit breaker shuts the pool down', async () => {
+    const pool = createWorkerPool(workerUrl, 1, {
+      subBatchIdleTimeoutMs: 10,
+      maxTimeoutRetries: 1,
+      timeoutBackoffFactor: 2,
+      consecutiveFailureThreshold: 1,
+      workerFactory: () =>
+        new TimeoutThenHealthyWorker() as unknown as import('node:worker_threads').Worker,
+    });
+
+    try {
+      await expect(
+        pool.dispatch<{ path: string; content: string }, { paths: string[] }>([
+          { path: 'src/native-stall.ts', content: 'const x = 1;' },
+        ]),
+      ).rejects.toThrow(/circuit breaker/i);
+
+      await waitFor(
+        () => TimeoutThenHealthyWorker.instances[0]?.terminateCalls === 1,
+        'Timed out waiting for circuit breaker cleanup to terminate retired worker',
+      );
+    } finally {
+      await pool.terminate();
+    }
+  });
+});