diff --git a/sdk/python/src/openai_codex/_goal.py b/sdk/python/src/openai_codex/_goal.py
index 4f76e0cc72..0bd8e8870a 100644
--- a/sdk/python/src/openai_codex/_goal.py
+++ b/sdk/python/src/openai_codex/_goal.py
@@ -8,6 +8,7 @@ from typing import AsyncIterator, Awaitable, Callable, Iterator
 
 from .generated.notification_registry import notification_turn_id
 from .generated.v2_all import (
+    CodexErrorInfoValue,
     ItemCompletedNotification,
     ThreadGoalClearedNotification,
     ThreadGoalStatus,
@@ -37,6 +38,13 @@ def _terminal_goal_status(status: ThreadGoalStatus | None) -> bool:
     }
 
 
+def _failed_goal_status(turn: Turn) -> ThreadGoalStatus:
+    error_info = turn.error.codex_error_info if turn.error is not None else None
+    if error_info is not None and error_info.root == CodexErrorInfoValue.usage_limit_exceeded:
+        return ThreadGoalStatus.usage_limited
+    return ThreadGoalStatus.blocked
+
+
 @dataclass(slots=True)
 class _GoalOperationState:
     """Private state for one goal operation exposed as a logical turn."""
@@ -313,6 +321,7 @@ class _GoalNotificationStream(Iterator[Notification]):
     next_notification: Callable[[], Notification]
     unregister: Callable[[], None]
     cancel_goal: Callable[[], None]
+    finish_failed_goal: Callable[[ThreadGoalStatus], None]
     _cursor: _GoalStreamCursor = field(init=False)
     _pending: deque[Notification] = field(default_factory=deque)
     _closed: bool = False
@@ -328,7 +337,15 @@ class _GoalNotificationStream(Iterator[Notification]):
             raise StopIteration
         try:
             while not self._pending:
-                events, completed = self._cursor.process(self.next_notification())
+                notification = self.next_notification()
+                events, completed = self._cursor.process(notification)
+                payload = notification.payload
+                if (
+                    not completed
+                    and isinstance(payload, TurnCompletedNotification)
+                    and payload.turn.status == TurnStatus.failed
+                ):
+                    self.finish_failed_goal(_failed_goal_status(payload.turn))
                 self._pending.extend(events)
                 if completed:
                     self._finish()
@@ -364,6 +381,7 @@ class _AsyncGoalNotificationStream(AsyncIterator[Notification]):
     next_notification: Callable[[], Awaitable[Notification]]
     unregister: Callable[[], None]
     cancel_goal: Callable[[], Awaitable[None]]
+    finish_failed_goal: Callable[[ThreadGoalStatus], Awaitable[None]]
     _cursor: _GoalStreamCursor = field(init=False)
     _pending: deque[Notification] = field(default_factory=deque)
     _closed: bool = False
@@ -379,7 +397,15 @@ class _AsyncGoalNotificationStream(AsyncIterator[Notification]):
             raise StopAsyncIteration
         try:
             while not self._pending:
-                events, completed = self._cursor.process(await self.next_notification())
+                notification = await self.next_notification()
+                events, completed = self._cursor.process(notification)
+                payload = notification.payload
+                if (
+                    not completed
+                    and isinstance(payload, TurnCompletedNotification)
+                    and payload.turn.status == TurnStatus.failed
+                ):
+                    await self.finish_failed_goal(_failed_goal_status(payload.turn))
                 self._pending.extend(events)
                 if completed:
                     self._finish()
diff --git a/sdk/python/src/openai_codex/api.py b/sdk/python/src/openai_codex/api.py
index 57ba84330d..d9353f5f3e 100644
--- a/sdk/python/src/openai_codex/api.py
+++ b/sdk/python/src/openai_codex/api.py
@@ -840,6 +840,7 @@ class TurnHandle:
                 lambda: self._client.next_goal_notification(self._goal),
                 lambda: self._client.unregister_goal_operation(self._goal),
                 lambda: self._client.cancel_goal_operation(self._goal),
+                lambda status: self._client.finish_failed_goal(self._goal, status),
             )
 
         def ordinary_stream() -> Iterator[Notification]:
@@ -967,6 +968,7 @@ class AsyncTurnHandle:
                 next_goal_notification,
                 lambda: self._codex._client.unregister_goal_operation(self._goal),
                 lambda: self._codex._client.cancel_goal_operation(self._goal),
+                lambda status: self._codex._client.finish_failed_goal(self._goal, status),
             )
 
         async def ordinary_stream() -> AsyncIterator[Notification]:
diff --git a/sdk/python/src/openai_codex/async_client.py b/sdk/python/src/openai_codex/async_client.py
index 38d621356a..d00a7e9fda 100644
--- a/sdk/python/src/openai_codex/async_client.py
+++ b/sdk/python/src/openai_codex/async_client.py
@@ -228,6 +228,14 @@ class AsyncCodexClient:
         """Pause the active goal through the wrapped sync client."""
         return await self._call_sync(self._sync.pause_goal, thread_id)
 
+    async def finish_failed_goal(
+        self,
+        state: _GoalOperationState,
+        status: ThreadGoalStatus,
+    ) -> None:
+        """Persist the terminal status for a failed physical goal turn."""
+        await self._call_sync(self._sync.finish_failed_goal, state, status)
+
     async def cancel_goal_operation(self, state: _GoalOperationState) -> None:
         """Stop continuation work after a logical goal operation is cancelled."""
         await self._call_sync(self._sync.cancel_goal_operation, state)
diff --git a/sdk/python/src/openai_codex/client.py b/sdk/python/src/openai_codex/client.py
index 9d3622c166..1d059ca8a2 100644
--- a/sdk/python/src/openai_codex/client.py
+++ b/sdk/python/src/openai_codex/client.py
@@ -507,6 +507,14 @@ class CodexClient:
         """Pause the active goal used by a logical goal turn."""
         return self.thread_goal_set(thread_id, status=ThreadGoalStatus.paused)
 
+    def finish_failed_goal(
+        self,
+        state: _GoalOperationState,
+        status: ThreadGoalStatus,
+    ) -> None:
+        """Persist the terminal status for a failed physical goal turn."""
+        self.thread_goal_set(state.thread_id, status=status)
+
     def cancel_goal_operation(self, state: _GoalOperationState) -> None:
         """Best-effort cleanup after a logical goal operation is cancelled."""
         try: