diff --git a/.changeset/fix-3088-milestone-state-fallback-sections.md b/.changeset/fix-3088-milestone-state-fallback-sections.md
new file mode 100644
index 000000000..4c4966acb
--- /dev/null
+++ b/.changeset/fix-3088-milestone-state-fallback-sections.md
@@ -0,0 +1,5 @@
+---
+type: Fixed
+pr: 3122
+---
+**Milestone close now repairs missing STATE narrative sections** — when `## Current Position` or `## Operator Next Steps` headings are absent, milestone completion appends canonical sections so state remains deterministic and consistently points operators to `/gsd-new-milestone`.
\ No newline at end of file
diff --git a/get-shit-done/bin/lib/milestone.cjs b/get-shit-done/bin/lib/milestone.cjs
index d891ee362..7490b935e 100644
--- a/get-shit-done/bin/lib/milestone.cjs
+++ b/get-shit-done/bin/lib/milestone.cjs
@@ -199,7 +199,7 @@ function cmdMilestoneComplete(cwd, version, options, raw) {
     atomicWriteFileSync(milestonesPath, normalizeMd(`# Milestones\n\n${milestoneEntry}`));
   }
 
-  // Update STATE.md — use shared helpers that handle both **bold:** and plain Field: formats
+  // Update STATE.md — keep frontmatter/body semantically aligned after closure
   if (fs.existsSync(statePath)) {
     let stateContent = fs.readFileSync(statePath, 'utf-8');
 
@@ -208,6 +208,31 @@ function cmdMilestoneComplete(cwd, version, options, raw) {
     stateContent = stateReplaceFieldWithFallback(stateContent, 'Last Activity Description', null,
       `${version} milestone completed and archived`);
 
+    // Reset Current Position narrative so resume/progress flows do not keep
+    // pointing at closed-phase execution instructions.
+    const positionPattern = /(##\s*Current Position\s*\n)([\s\S]*?)(?=\n##|$)/i;
+    const closedPositionBody =
+      `\nPhase: Milestone ${version} complete\n` +
+      `Plan: —\n` +
+      `Status: Awaiting next milestone\n` +
+      `Last activity: ${today} — Milestone ${version} completed and archived\n\n`;
+    if (positionPattern.test(stateContent)) {
+      stateContent = stateContent.replace(positionPattern, (_m, header) => `${header}${closedPositionBody}`);
+    } else {
+      stateContent = `${stateContent.trimEnd()}\n\n## Current Position\n${closedPositionBody}`;
+    }
+
+    // Normalize operator-next-step tails that can become stale after close.
+    const operatorPattern = /(##\s*Operator Next Steps\s*\n)([\s\S]*?)(?=\n##|$)/i;
+    if (operatorPattern.test(stateContent)) {
+      stateContent = stateContent.replace(
+        operatorPattern,
+        `$1\n- Start the next milestone with /gsd-new-milestone\n\n`,
+      );
+    } else {
+      stateContent = `${stateContent.trimEnd()}\n\n## Operator Next Steps\n\n- Start the next milestone with /gsd-new-milestone\n`;
+    }
+
     writeStateMd(statePath, stateContent, cwd);
   }
 
diff --git a/sdk/src/query/phase-lifecycle.ts b/sdk/src/query/phase-lifecycle.ts
index 306e787c2..a9a3e5c5c 100644
--- a/sdk/src/query/phase-lifecycle.ts
+++ b/sdk/src/query/phase-lifecycle.ts
@@ -1841,6 +1841,29 @@ export const milestoneComplete: QueryHandler = async (args, projectDir, workstre
         null,
         `${version} milestone completed and archived`,
       );
+
+      const positionPattern = /(##\s*Current Position\s*\n)([\s\S]*?)(?=\n##|$)/i;
+      const closedPositionBody =
+        `\nPhase: Milestone ${version} complete\n` +
+        `Plan: —\n` +
+        `Status: Awaiting next milestone\n` +
+        `Last activity: ${today} — Milestone ${version} completed and archived\n\n`;
+      if (positionPattern.test(next)) {
+        next = next.replace(positionPattern, (_m, header) => `${header}${closedPositionBody}`);
+      } else {
+        next = `${next.trimEnd()}\n\n## Current Position\n${closedPositionBody}`;
+      }
+
+      const operatorPattern = /(##\s*Operator Next Steps\s*\n)([\s\S]*?)(?=\n##|$)/i;
+      if (operatorPattern.test(next)) {
+        next = next.replace(
+          operatorPattern,
+          `$1\n- Start the next milestone with /gsd-new-milestone\n\n`,
+        );
+      } else {
+        next = `${next.trimEnd()}\n\n## Operator Next Steps\n\n- Start the next milestone with /gsd-new-milestone\n`;
+      }
+
       return next;
     }, workstream);
   }
diff --git a/tests/milestone.test.cjs b/tests/milestone.test.cjs
index b3d9b9e32..79c0dba93 100644
--- a/tests/milestone.test.cjs
+++ b/tests/milestone.test.cjs
@@ -227,6 +227,43 @@ describe('milestone complete command', () => {
     );
   });
 
+  test('normalizes stale STATE.md narrative tails after milestone complete (#3088)', () => {
+    fs.writeFileSync(
+      path.join(tmpDir, '.planning', 'ROADMAP.md'),
+      `# Roadmap v1.0\n`
+    );
+    fs.writeFileSync(
+      path.join(tmpDir, '.planning', 'STATE.md'),
+      `# State\n\n**Status:** In progress\n**Last Activity:** 2025-01-01\n**Last Activity Description:** Working\n\n## Current Position\n\nPhase: 03 — EXECUTING\nPlan: 03-02\nStatus: Executing\nLast activity: 2025-01-01 — Running phase\n\n## Operator Next Steps\n\n- Re-run /gsd-complete-milestone v1.0\n`
+    );
+
+    const result = runGsdTools('milestone complete v1.0 --name Test', tmpDir);
+    assert.ok(result.success, `Command failed: ${result.error}`);
+
+    const state = fs.readFileSync(path.join(tmpDir, '.planning', 'STATE.md'), 'utf-8');
+    assert.ok(state.includes('Phase: Milestone v1.0 complete'));
+    assert.ok(state.includes('Status: Awaiting next milestone'));
+    assert.ok(!state.includes('Re-run /gsd-complete-milestone'));
+    assert.ok(state.includes('/gsd-new-milestone'));
+  });
+
+  test('appends canonical narrative sections when STATE.md headings are missing (#3088)', () => {
+    fs.writeFileSync(path.join(tmpDir, '.planning', 'ROADMAP.md'), `# Roadmap v1.0\n`);
+    fs.writeFileSync(
+      path.join(tmpDir, '.planning', 'STATE.md'),
+      `# State\n\n**Status:** In progress\n**Last Activity:** 2025-01-01\n**Last Activity Description:** Working\n`
+    );
+
+    const result = runGsdTools('milestone complete v1.0 --name Test', tmpDir);
+    assert.ok(result.success, `Command failed: ${result.error}`);
+
+    const state = fs.readFileSync(path.join(tmpDir, '.planning', 'STATE.md'), 'utf-8');
+    assert.ok(state.includes('## Current Position'));
+    assert.ok(state.includes('Phase: Milestone v1.0 complete'));
+    assert.ok(state.includes('## Operator Next Steps'));
+    assert.ok(state.includes('/gsd-new-milestone'));
+  });
+
   test('handles missing ROADMAP.md gracefully', () => {
     // Only STATE.md — no ROADMAP.md, no REQUIREMENTS.md
     fs.writeFileSync(