diff --git a/AGENTS.md b/AGENTS.md
index 6752480..6e74784 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -58,7 +58,7 @@ This API surface makes text objects (`ciw`, `di"`), direct cursor manipulation,
 
 ```
 src/
-  index.ts       (408 lines)  Plugin entry: intercept registration, action application
+  index.ts       (414 lines)  Plugin entry: intercept registration, action application
   vim/                        Pure vim engine (thin barrel re-exports the public surface):
     index.ts     (7 lines)    Barrel — public surface only. No export *, no internals.
     types.ts     (57 lines)   Action union, VimState, Mode, Operator, Pending, Range, KeyEvent, HandlerResult, PromptAccess
@@ -84,7 +84,7 @@ test/
     normal.test.ts   (823)    handleNormalKey branches
     visual.test.ts   (287)    handleVisualKey branches
     textobject.test.ts (64)   resolveTextObject dispatch seam
-  integration.test.ts (418)   Full pipeline: one-shot normal, plugin init, undo snapshots, version sync
+  integration.test.ts (579)   Full pipeline: one-shot normal, plugin init, undo snapshots, version sync, prompt overlay tracking
   leader.test.ts (125 lines)  Unit tests for leader key matching functions
 ```
 
diff --git a/CHANGELOG.md b/CHANGELOG.md
index aa15950..c028de6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,10 @@ Format follows [Keep a Changelog](https://keepachangelog.com/en/1.1.0/). Version
 
 ## [Unreleased]
 
+### Fixed
+
+- Dismissing or rejecting a question prompt no longer leaves vimcode stuck passing every key through to the editor (block cursor, typing works, Escape dead). vimcode now also listens for `question.rejected`, not just `question.replied` ([#72](https://github.com/oribarilan/vimcode/issues/72)).
+
 ## [0.18.0] — 2026-09-02
 
 ### Added
diff --git a/src/index.ts b/src/index.ts
index f5f6433..1e56199 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -67,11 +67,17 @@ const plugin: TuiPluginModule = {
     const unsubQuestAsked = api.event?.on?.("question.asked", (e: any) => trackPromptEvent(e, 1));
     // biome-ignore lint/suspicious/noExplicitAny: event shape is untyped in the plugin API
     const unsubQuestReplied = api.event?.on?.("question.replied", (e: any) => trackPromptEvent(e, -1));
+    // Dismissing a question emits question.rejected, not question.replied.
+    // Without this the +1 from question.asked never balances and the plugin
+    // stays stuck passing every key through to the host.
+    // biome-ignore lint/suspicious/noExplicitAny: event shape is untyped in the plugin API
+    const unsubQuestRejected = api.event?.on?.("question.rejected", (e: any) => trackPromptEvent(e, -1));
     api.lifecycle?.onDispose?.(() => {
       unsubPermsAsked?.();
       unsubPermsReplied?.();
       unsubQuestAsked?.();
       unsubQuestReplied?.();
+      unsubQuestRejected?.();
     });
 
     function hasActivePrompts(sid: string): boolean {
diff --git a/test/integration.test.ts b/test/integration.test.ts
index c109d0b..e208911 100644
--- a/test/integration.test.ts
+++ b/test/integration.test.ts
@@ -475,3 +475,105 @@ describe("arrow keys pass through the intercept", () => {
     expect(press("j")).toBe(true);
   });
 });
+
+// ── prompt overlay tracking (question.rejected leak) ──────
+
+describe("prompt overlay tracking", () => {
+  // The plugin tracks pending permission/question prompts via events so it can
+  // pass keys through while an overlay owns the keyboard. Every "asked" must be
+  // balanced by a terminal event, otherwise hasActivePrompts() stays true and
+  // the plugin is stuck passing all keys (including Escape) to the host.
+  async function setup() {
+    const plugin = (await import("../src/index")).default;
+    // biome-ignore lint/suspicious/noExplicitAny: test mock
+    let handler: (ctx: any) => void;
+    const events = new Map<string, (e: unknown) => void>();
+    const sessions: Record<string, { parentID?: string }> = { root: {}, child: { parentID: "root" } };
+
+    const api = {
+      renderer: { currentFocusedEditor: undefined },
+      ui: { toast: () => {}, dialog: { open: false } },
+      keymap: {
+        intercept: (_e: string, h: typeof handler) => {
+          handler = h;
+        },
+        dispatchCommand: () => ({ ok: false }),
+      },
+      route: { current: { name: "session", params: { sessionID: "root" } } },
+      state: {
+        session: {
+          get: (id: string) => sessions[id],
+          question: () => [],
+          permission: () => [],
+        },
+      },
+      event: {
+        on: (name: string, h: (e: unknown) => void) => {
+          events.set(name, h);
+          return () => events.delete(name);
+        },
+      },
+      lifecycle: { onDispose: () => {} },
+      kv: {},
+    };
+
+    // biome-ignore lint/suspicious/noExplicitAny: mock API
+    await plugin.tui(api as any, { updateCheck: false } as any, undefined as any);
+
+    const press = (name: string) => {
+      let consumed = false;
+      handler?.({
+        event: { name, eventType: "press" },
+        consume: () => {
+          consumed = true;
+        },
+      });
+      return consumed;
+    };
+
+    const emit = (name: string, properties: Record<string, unknown>) => events.get(name)?.({ properties });
+
+    press("escape"); // leave insert, enter normal mode
+    return { press, emit };
+  }
+
+  it("keys pass through while a question is pending, then resume after question.rejected", async () => {
+    const { press, emit } = await setup();
+
+    emit("question.asked", { id: "q1", sessionID: "root" });
+    expect(press("h")).toBe(false);
+
+    emit("question.rejected", { requestID: "q1", sessionID: "root" });
+    expect(press("h")).toBe(true);
+  });
+
+  it("question.replied also resumes key consumption", async () => {
+    const { press, emit } = await setup();
+
+    emit("question.asked", { id: "q1", sessionID: "root" });
+    expect(press("h")).toBe(false);
+
+    emit("question.replied", { requestID: "q1", sessionID: "root" });
+    expect(press("h")).toBe(true);
+  });
+
+  it("permission.replied resumes key consumption", async () => {
+    const { press, emit } = await setup();
+
+    emit("permission.asked", { id: "p1", sessionID: "root" });
+    expect(press("h")).toBe(false);
+
+    emit("permission.replied", { requestID: "p1", sessionID: "root" });
+    expect(press("h")).toBe(true);
+  });
+
+  it("a prompt on a child session is tracked against its root", async () => {
+    const { press, emit } = await setup();
+
+    emit("question.asked", { id: "q1", sessionID: "child" });
+    expect(press("h")).toBe(false);
+
+    emit("question.rejected", { requestID: "q1", sessionID: "child" });
+    expect(press("h")).toBe(true);
+  });
+});