diff --git a/src/auto-reply/reply/model-selection.test.ts b/src/auto-reply/reply/model-selection.test.ts
index 1f06beb9c13..3833091fa22 100644
--- a/src/auto-reply/reply/model-selection.test.ts
+++ b/src/auto-reply/reply/model-selection.test.ts
@@ -568,6 +568,7 @@ describe("createModelSelectionState auto-failover override self-healing", () =>
       modelOverrideSource: "auto",
     });
 
+    // Provider/model should revert to the configured primary, not the fallback.
     // Provider/model should revert to the configured primary, not the fallback.
     expect(state.provider).toBe(defaultProvider);
     expect(state.model).toBe(defaultModel);
@@ -575,7 +576,39 @@ describe("createModelSelectionState auto-failover override self-healing", () =>
     expect(sessionStore[sessionKey]?.providerOverride).toBeUndefined();
     expect(sessionStore[sessionKey]?.modelOverride).toBeUndefined();
     expect(sessionStore[sessionKey]?.modelOverrideSource).toBeUndefined();
-    expect(state.resetModelOverride).toBe(true);
+    // resetModelOverride must NOT be set — it triggers a "Model override not allowed"
+    // system event which is incorrect for auto-heal (the override was valid).
+    expect(state.resetModelOverride).toBe(false);
+  });
+
+  it("resets in-memory provider/model even when caller pre-loaded the fallback", async () => {
+    // Simulates get-reply-directives.ts preloading provider/model from stored override
+    // before calling createModelSelectionState. Our fix must update those in-memory
+    // values so the current turn retries the primary, not the fallback.
+    const cfg = {} as OpenClawConfig;
+    const sessionEntry = makeEntry({
+      providerOverride: "openrouter",
+      modelOverride: "minimax/minimax-m2.7",
+      modelOverrideSource: "auto",
+    });
+    const sessionStore = { [sessionKey]: sessionEntry };
+    const state = await createModelSelectionState({
+      cfg,
+      agentCfg: cfg.agents?.defaults,
+      sessionEntry,
+      sessionStore,
+      sessionKey,
+      defaultProvider,
+      defaultModel,
+      // Caller already preloaded fallback values from stored override
+      provider: "openrouter",
+      model: "minimax/minimax-m2.7",
+      hasModelDirective: false,
+    });
+
+    expect(state.provider).toBe(defaultProvider);
+    expect(state.model).toBe(defaultModel);
+    expect(state.resetModelOverride).toBe(false);
   });
 
   it("preserves a user-selected override across turns", async () => {
diff --git a/src/auto-reply/reply/model-selection.ts b/src/auto-reply/reply/model-selection.ts
index a90f6095703..6e820281c32 100644
--- a/src/auto-reply/reply/model-selection.ts
+++ b/src/auto-reply/reply/model-selection.ts
@@ -376,10 +376,14 @@ export async function createModelSelectionState(params: {
   // the regular session/parent model override behavior.
   const skipStoredOverride = params.hasResolvedHeartbeatModelOverride === true;
 
-  // Auto-failover overrides are transient: on the next turn, retry the configured
+  // Auto-failover overrides are transient: on this turn, retry the configured
   // primary so the session self-heals when the primary recovers. The fallback loop
   // in runWithModelFallback will re-set the override if the primary is still down.
   // User-selected overrides (/model command) are preserved across turns.
+  //
+  // Note: channel model overrides (channels.modelByChannel) are skipped when
+  // hasSessionModelOverride was true at get-reply-directives preload time. They
+  // resume on the following turn once the session state is clear.
   const isAutoSessionOverride =
     storedOverride?.source === "session" && sessionEntry?.modelOverrideSource === "auto";
   if (isAutoSessionOverride && sessionEntry && sessionStore && sessionKey && !resetModelOverride) {
@@ -396,7 +400,15 @@ export async function createModelSelectionState(params: {
           store[sessionKey] = sessionEntry;
         });
       }
-      resetModelOverride = true;
+      // Reset in-memory selection to the configured primary. The caller-provided
+      // provider/model were already set to the fallback by the stored-override
+      // preload in get-reply-directives.ts; updating them here ensures this turn
+      // retries the primary rather than incurring one extra fallback call.
+      provider = defaultProvider;
+      model = defaultModel;
+      // Do NOT set resetModelOverride — that flag triggers a "Model override not
+      // allowed for this agent" system event, which is incorrect for auto-heal.
+      // The override was valid; it just expired after the primary recovered.
     }
   }