diff --git a/CHANGELOG.md b/CHANGELOG.md
index 76acaca..05a7a37 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,8 @@
 All notable changes to this project will be documented in this file. This change log follows the conventions of [keepachangelog.com](http://keepachangelog.com/).
 
 ## [Unreleased]
+### Added
+- `:no-result` permission outcome — extensions can attach to sessions without actively answering permission requests by returning `{:kind :no-result}` from their `:on-permission-request` handler. On v3 protocol, the `handlePendingPermissionRequest` RPC is skipped; on v2, an error is propagated to the CLI (upstream PR #802).
 
 ## [0.1.32.0] - 2026-03-12
 ### Added (upstream sync)
diff --git a/doc/reference/API.md b/doc/reference/API.md
index 246382a..673683c 100644
--- a/doc/reference/API.md
+++ b/doc/reference/API.md
@@ -1318,6 +1318,9 @@ fields like `:full-command-text`, `:commands`, and `:possible-paths`.
 
 ;; Deny after user interaction (optional feedback)
 {:kind :denied-interactively-by-user :feedback "Not allowed"}
+
+;; Extension declines to answer (another handler may respond)
+{:kind :no-result}
 ```
 
 #### `approve-all`
diff --git a/src/github/copilot_sdk/client.clj b/src/github/copilot_sdk/client.clj
index 633e217..2bf0aec 100644
--- a/src/github/copilot_sdk/client.clj
+++ b/src/github/copilot_sdk/client.clj
@@ -247,7 +247,9 @@
 (defn- handle-v3-permission-requested!
   "Handle v3 permission.requested broadcast event.
    Calls the session's permission handler and responds via the
-   session.permissions.handlePendingPermissionRequest RPC method."
+   session.permissions.handlePendingPermissionRequest RPC method.
+   When the handler returns :no-result, the RPC call is skipped
+   so the extension does not answer this permission request."
   [client session-id event]
   (let [data (:data event)
         request-id (:request-id data)
@@ -257,13 +259,15 @@
         (try
           (let [perm-response (<! (session/handle-permission-request!
                                    client session-id permission-request))
-                result (:result perm-response)
-                conn (:connection-io @(:state client))]
-            (when conn
-              (<! (proto/send-request conn "session.permissions.handlePendingPermissionRequest"
-                                     {:session-id session-id
-                                      :request-id request-id
-                                      :result result}))))
+                result (:result perm-response)]
+            ;; :no-result — extension declines to answer; skip the RPC call
+            (when-not (= :no-result result)
+              (let [conn (:connection-io @(:state client))]
+                (when conn
+                  (<! (proto/send-request conn "session.permissions.handlePendingPermissionRequest"
+                                         {:session-id session-id
+                                          :request-id request-id
+                                          :result result}))))))
           (catch Exception e
             (log/debug "v3 permission request error for " request-id ": " (ex-message e))
             (try
@@ -495,9 +499,16 @@
                                       (let [{:keys [session-id permission-request]} params]
                                         (if-not (get-in @(:state client) [:sessions session-id])
                                           {:result {:kind :denied-no-approval-rule-and-could-not-request-from-user}}
-                                          (let [result (<! (session/handle-permission-request! client session-id permission-request))]
-                                            (log/debug "Permission response for session " session-id ": " result)
-                                            {:result result})))
+                                          (let [perm-response (<! (session/handle-permission-request! client session-id permission-request))
+                                                result (:result perm-response)]
+                                            (if (= :no-result result)
+                                              ;; no-result must propagate as an error on v2 protocol
+                                              ;; so the CLI knows no answer was given (matches upstream -32603)
+                                              {:error {:code -32603
+                                                       :message "Permission handler returned no-result on protocol v2"}}
+                                              (do
+                                                (log/debug "Permission response for session " session-id ": " result)
+                                                {:result perm-response})))))
 
                                       ;; User input request (PR #269)
                                       "userInput.request"
diff --git a/src/github/copilot_sdk/session.clj b/src/github/copilot_sdk/session.clj
index e1fa518..92c1e62 100644
--- a/src/github/copilot_sdk/session.clj
+++ b/src/github/copilot_sdk/session.clj
@@ -196,7 +196,13 @@
    :mixed))
 
 (defn handle-permission-request!
-  "Handle an incoming permission request. Returns a channel with the result."
+  "Handle an incoming permission request. Returns a channel with the result.
+   When the handler returns `{:kind :no-result}`, the result is
+   `{:result :no-result}` — callers must check for this sentinel:
+   - **v3 (broadcast path):** skip the `handlePendingPermissionRequest` RPC
+     entirely so the extension does not answer this permission request.
+   - **v2 (request-handler path):** propagate as a JSON-RPC internal error
+     (code -32603) so the CLI knows the request was not handled."
   [client session-id request]
   (async/thread-call
    (fn []
@@ -210,9 +216,18 @@
                           (<!! result)
                           result)]
              (cond
+               ;; no-result: extension doesn't answer this permission request
+               (and (map? result) (= :no-result (:kind result)))
+               {:result :no-result}
+
                (and (map? result) (contains? result :kind))
                {:result result}
 
+               ;; Wrapped form: {:result {:kind ...}}
+               (and (map? result) (contains? result :result)
+                    (map? (:result result)) (= :no-result (:kind (:result result))))
+               {:result :no-result}
+
                (and (map? result) (contains? result :result)
                     (map? (:result result)) (contains? (:result result) :kind))
                 result
diff --git a/src/github/copilot_sdk/specs.clj b/src/github/copilot_sdk/specs.clj
index 20711a7..c4fb320 100644
--- a/src/github/copilot_sdk/specs.clj
+++ b/src/github/copilot_sdk/specs.clj
@@ -562,7 +562,8 @@
   #{:approved
     :denied-by-rules
     :denied-no-approval-rule-and-could-not-request-from-user
-    :denied-interactively-by-user})
+    :denied-interactively-by-user
+    :no-result})
 
 (s/def ::permission-result
   (s/keys :req-un [::permission-result-kind]
diff --git a/test/github/copilot_sdk/integration_test.clj b/test/github/copilot_sdk/integration_test.clj
index b6c0f54..7500b4a 100644
--- a/test/github/copilot_sdk/integration_test.clj
+++ b/test/github/copilot_sdk/integration_test.clj
@@ -908,6 +908,99 @@
       (is (= :approved (get-in approved [:result :result :kind])))
       (is (= :denied-by-rules (get-in denied [:result :result :kind]))))))
 
+(deftest test-permission-no-result-v2
+  (testing "no-result permission handler returns error on v2 protocol"
+    (let [session (sdk/create-session *test-client*
+                                      {:on-permission-request
+                                       (fn [_request _ctx]
+                                         {:kind :no-result})})
+          session-id (sdk/session-id session)
+          handler (get-in @(:state *test-client*) [:connection :request-handler])
+          response (<!! (handler "permission.request"
+                                 {:session-id session-id
+                                  :permission-request {:permission-kind "shell"
+                                                       :full-command-text "echo test"}}))]
+      ;; v2: no-result should propagate as a JSON-RPC internal error
+      (is (= -32603 (get-in response [:error :code]))
+          "no-result on v2 should produce a -32603 internal error")))
+
+  (testing "wrapped no-result permission handler returns error on v2 protocol"
+    (let [session (sdk/create-session *test-client*
+                                      {:on-permission-request
+                                       (fn [_request _ctx]
+                                         {:result {:kind :no-result}})})
+          session-id (sdk/session-id session)
+          handler (get-in @(:state *test-client*) [:connection :request-handler])
+          response (<!! (handler "permission.request"
+                                 {:session-id session-id
+                                  :permission-request {:permission-kind "shell"
+                                                       :full-command-text "echo test"}}))]
+      (is (= -32603 (get-in response [:error :code]))
+          "wrapped no-result on v2 should also produce a -32603 error"))))
+
+(deftest test-permission-no-result-v3
+  (testing "v3 no-result skips handlePendingPermissionRequest RPC"
+    (let [requests (atom [])
+          _ (mock/set-request-hook! *mock-server*
+              (fn [method params]
+                (swap! requests conj {:method method :params params})))
+          session (sdk/create-session *test-client*
+                                      {:on-permission-request
+                                       (fn [_request _ctx]
+                                         {:kind :no-result})})
+          session-id (sdk/session-id session)]
+      ;; Force protocol v3 so the broadcast path is active
+      (swap! (:state *test-client*) assoc :negotiated-protocol-version 3)
+      ;; Reset captured requests after session creation
+      (reset! requests [])
+      ;; Inject a v3 permission.requested broadcast event
+      (mock/send-session-event! *mock-server* session-id
+                                "permission.requested"
+                                {:requestId "perm-req-1"
+                                 :permissionRequest {:permissionKind "shell"
+                                                     :fullCommandText "echo test"}})
+      ;; Allow async handler to process
+      (Thread/sleep 500)
+      ;; The handler returned no-result — no handlePendingPermissionRequest RPC
+      (is (empty? (filter #(= "session.permissions.handlePendingPermissionRequest"
+                               (:method %))
+                          @requests))
+          "no-result should skip the handlePendingPermissionRequest RPC"))))
+
+(deftest test-permission-approved-v3
+  (testing "v3 approved handler sends handlePendingPermissionRequest RPC"
+    (let [requests (atom [])
+          rpc-latch (java.util.concurrent.CountDownLatch. 1)
+          _ (mock/set-request-hook! *mock-server*
+              (fn [method params]
+                (swap! requests conj {:method method :params params})
+                (when (= "session.permissions.handlePendingPermissionRequest" method)
+                  (.countDown rpc-latch))))
+          session (sdk/create-session *test-client*
+                                      {:on-permission-request sdk/approve-all})
+          session-id (sdk/session-id session)]
+      ;; Force protocol v3
+      (swap! (:state *test-client*) assoc :negotiated-protocol-version 3)
+      ;; Reset captured requests after session creation
+      (reset! requests [])
+      ;; Inject a v3 permission.requested broadcast event
+      (mock/send-session-event! *mock-server* session-id
+                                "permission.requested"
+                                {:requestId "perm-req-2"
+                                 :permissionRequest {:permissionKind "shell"
+                                                     :fullCommandText "echo test"}})
+      ;; Wait for the RPC to arrive (up to 5 seconds)
+      (.await rpc-latch 5 java.util.concurrent.TimeUnit/SECONDS)
+      ;; The handler approved — should send handlePendingPermissionRequest RPC
+      (let [perm-rpcs (filter #(= "session.permissions.handlePendingPermissionRequest"
+                                   (:method %))
+                              @requests)]
+        (is (= 1 (count perm-rpcs))
+            "approved result should send handlePendingPermissionRequest RPC")
+        (when (seq perm-rpcs)
+          (is (= "perm-req-2" (:requestId (:params (first perm-rpcs))))
+              "RPC should include the correct request-id"))))))
+
 ;; -----------------------------------------------------------------------------
 ;; Last Session ID Tests
 ;; -----------------------------------------------------------------------------
diff --git a/test/github/copilot_sdk/mock_server.clj b/test/github/copilot_sdk/mock_server.clj
index f6386b2..592d941 100644
--- a/test/github/copilot_sdk/mock_server.clj
+++ b/test/github/copilot_sdk/mock_server.clj
@@ -300,6 +300,7 @@
                  "session.model.getCurrent" (handle-session-model-get-current server params)
                  "session.model.switchTo" (handle-session-model-switch-to server params)
                  "session.log" (handle-session-log server params)
+                 "session.permissions.handlePendingPermissionRequest" {:ok true}
                  (throw (ex-info "Method not found" {:code -32601 :method method})))]
     {:jsonrpc "2.0"
      :id (:id msg)