diff --git a/cmd/floop/cmd_consolidate.go b/cmd/floop/cmd_consolidate.go
index c8a7afb..20c41ce 100644
--- a/cmd/floop/cmd_consolidate.go
+++ b/cmd/floop/cmd_consolidate.go
@@ -149,19 +149,22 @@ func runConsolidate(cmd *cobra.Command, args []string) error {
 	consolidator := consolidation.NewConsolidator(executor, llmClient, decisions, model)
 	runner := consolidation.NewRunner(consolidator)
 
-	result, err := runner.Run(ctx, evts, graphStore, consolidation.RunOptions{
+	result, runErr := runner.Run(ctx, evts, graphStore, consolidation.RunOptions{
 		DryRun: dryRun,
 	})
-	if err != nil {
-		return fmt.Errorf("consolidation pipeline: %w", err)
-	}
 
-	// Mark processed events as consolidated (prevents re-processing)
-	if !dryRun && len(result.SourceEventIDs) > 0 {
-		if err := es.MarkConsolidated(ctx, result.SourceEventIDs); err != nil {
-			return fmt.Errorf("marking events consolidated: %w", err)
+	// Mark successfully-processed events as consolidated even if a later
+	// session errored. Without this, the pipeline re-processes the same
+	// events on every invocation, wasting rate limit on redundant work.
+	if !dryRun && result != nil && len(result.SourceEventIDs) > 0 {
+		if markErr := es.MarkConsolidated(ctx, result.SourceEventIDs); markErr != nil {
+			fmt.Fprintf(cmd.ErrOrStderr(), "warning: failed to mark %d events consolidated: %v\n",
+				len(result.SourceEventIDs), markErr)
 		}
 	}
+	if runErr != nil {
+		return fmt.Errorf("consolidation pipeline: %w", runErr)
+	}
 
 	if jsonOut {
 		json.NewEncoder(out).Encode(map[string]interface{}{
diff --git a/internal/consolidation/runner_test.go b/internal/consolidation/runner_test.go
index 312aebc..e960b7b 100644
--- a/internal/consolidation/runner_test.go
+++ b/internal/consolidation/runner_test.go
@@ -3,6 +3,7 @@ package consolidation
 import (
 	"bufio"
 	"context"
+	"database/sql"
 	"encoding/json"
 	"fmt"
 	"os"
@@ -14,6 +15,7 @@ import (
 	"github.com/nvandessel/floop/internal/logging"
 	"github.com/nvandessel/floop/internal/models"
 	"github.com/nvandessel/floop/internal/store"
+	_ "modernc.org/sqlite"
 )
 
 // failOnSessionConsolidator wraps HeuristicConsolidator but fails Extract
@@ -101,6 +103,21 @@ func (s *stubConsolidator) Model() string {
 
 func (s *stubConsolidator) SetRunID(id string) { s.runID = id }
 
+// newTestEventStore creates a real SQLite event store for integration tests.
+func newTestEventStore(t *testing.T) *events.SQLiteEventStore {
+	t.Helper()
+	db, err := sql.Open("sqlite", ":memory:")
+	if err != nil {
+		t.Fatalf("opening in-memory DB: %v", err)
+	}
+	t.Cleanup(func() { db.Close() })
+	es := events.NewSQLiteEventStore(db)
+	if err := es.InitSchema(context.Background()); err != nil {
+		t.Fatalf("InitSchema: %v", err)
+	}
+	return es
+}
+
 func TestRunner_DryRun(t *testing.T) {
 	h := NewHeuristicConsolidator()
 	runner := NewRunner(h)
@@ -948,6 +965,118 @@ func TestRunner_ContextCancelAfterRelate(t *testing.T) {
 	}
 }
 
+// TestRunner_MarkConsolidatedOnPartialFailure simulates the caller pattern from
+// cmd_consolidate.go and handler_consolidate.go: when runner.Run returns both a
+// result and an error, MarkConsolidated should still be called with the
+// successful session's event IDs before the error is propagated.
+func TestRunner_MarkConsolidatedOnPartialFailure(t *testing.T) {
+	c := &failOnSessionConsolidator{failSession: "sess-fail"}
+	runner := NewRunner(c)
+
+	evts := []events.Event{
+		{ID: "e1", SessionID: "sess-ok", Actor: "user", Kind: "correction", Content: "fix A"},
+		{ID: "e2", SessionID: "sess-ok", Actor: "user", Kind: "correction", Content: "fix B"},
+		{ID: "e3", SessionID: "sess-fail", Actor: "user", Kind: "correction", Content: "fail here"},
+	}
+
+	result, runErr := runner.Run(context.Background(), evts, nil, RunOptions{DryRun: true})
+	if runErr == nil {
+		t.Fatal("expected error from failing session")
+	}
+
+	// Simulate the fixed caller pattern: mark consolidated BEFORE checking error.
+	// This is what cmd_consolidate.go and handler_consolidate.go now do.
+	var markedIDs []string
+	if result != nil && len(result.SourceEventIDs) > 0 {
+		markedIDs = result.SourceEventIDs
+	}
+
+	// Successful session's events should be available for marking
+	if len(markedIDs) != 2 {
+		t.Fatalf("expected 2 event IDs from successful session, got %d: %v", len(markedIDs), markedIDs)
+	}
+
+	// Verify the correct IDs are present
+	idSet := map[string]bool{}
+	for _, id := range markedIDs {
+		idSet[id] = true
+	}
+	if !idSet["e1"] || !idSet["e2"] {
+		t.Errorf("expected e1 and e2 in marked IDs, got %v", markedIDs)
+	}
+	// e3 (from failed session) should NOT be in the list
+	if idSet["e3"] {
+		t.Error("e3 from failed session should not be in marked IDs")
+	}
+
+	// The original error should still propagate
+	if !strings.Contains(runErr.Error(), "sess-fail") {
+		t.Errorf("expected error mentioning sess-fail, got: %v", runErr)
+	}
+}
+
+// TestRunner_MarkConsolidatedOnPartialFailure_WithEventStore is an integration
+// test that uses a real SQLite event store to verify the end-to-end flow:
+// events from successful sessions get marked consolidated even when a later
+// session fails.
+func TestRunner_MarkConsolidatedOnPartialFailure_WithEventStore(t *testing.T) {
+	// Set up a real event store
+	es := newTestEventStore(t)
+
+	evts := []events.Event{
+		{ID: "e1", SessionID: "sess-ok", Actor: "user", Kind: "correction", Content: "fix A"},
+		{ID: "e2", SessionID: "sess-ok", Actor: "user", Kind: "correction", Content: "fix B"},
+		{ID: "e3", SessionID: "sess-fail", Actor: "user", Kind: "correction", Content: "fail here"},
+	}
+
+	ctx := context.Background()
+	for _, evt := range evts {
+		if err := es.Add(ctx, evt); err != nil {
+			t.Fatalf("Add(%s): %v", evt.ID, err)
+		}
+	}
+
+	// Run with a consolidator that fails on sess-fail
+	c := &failOnSessionConsolidator{failSession: "sess-fail"}
+	runner := NewRunner(c)
+	result, runErr := runner.Run(ctx, evts, nil, RunOptions{DryRun: true})
+
+	// Apply the fixed caller pattern
+	if result != nil && len(result.SourceEventIDs) > 0 {
+		if markErr := es.MarkConsolidated(ctx, result.SourceEventIDs); markErr != nil {
+			t.Fatalf("MarkConsolidated: %v", markErr)
+		}
+	}
+
+	// Verify the original error is still returned
+	if runErr == nil {
+		t.Fatal("expected error from failing session")
+	}
+
+	// Verify sess-ok events are marked consolidated
+	unconsolidated, err := es.GetUnconsolidated(ctx)
+	if err != nil {
+		t.Fatalf("GetUnconsolidated: %v", err)
+	}
+
+	unconsolidatedIDs := map[string]bool{}
+	for _, evt := range unconsolidated {
+		unconsolidatedIDs[evt.ID] = true
+	}
+
+	// e1 and e2 should be consolidated (not in unconsolidated list)
+	if unconsolidatedIDs["e1"] {
+		t.Error("e1 should be consolidated but is still unconsolidated")
+	}
+	if unconsolidatedIDs["e2"] {
+		t.Error("e2 should be consolidated but is still unconsolidated")
+	}
+	// e3 should still be unconsolidated
+	if !unconsolidatedIDs["e3"] {
+		t.Error("e3 should still be unconsolidated (from failed session)")
+	}
+}
+
 func TestRunner_PromoteError(t *testing.T) {
 	stub := &stubConsolidator{
 		promoteFn: func(_ context.Context, _ []ClassifiedMemory, _ []store.Edge, _ []MergeProposal, _ []int, _ store.GraphStore) (PromoteResult, error) {
diff --git a/internal/mcp/handler_consolidate.go b/internal/mcp/handler_consolidate.go
index 691ed71..42c8949 100644
--- a/internal/mcp/handler_consolidate.go
+++ b/internal/mcp/handler_consolidate.go
@@ -117,19 +117,21 @@ func (s *Server) handleFloopConsolidate(ctx context.Context, req *sdk.CallToolRe
 		}
 	}
 	c := consolidation.NewConsolidator(executor, s.llmClient, decisions, model)
-	result, err := consolidation.NewRunner(c).
+	result, runErr := consolidation.NewRunner(c).
 		Run(ctx, evts, s.store, consolidation.RunOptions{DryRun: args.DryRun})
-	if err != nil {
-		return nil, FloopConsolidateOutput{}, fmt.Errorf("consolidation pipeline failed: %w", err)
-	}
 
-	// Mark processed events as consolidated — fail the call if this errors,
-	// since leaving events unmarked will cause duplicate promotion on next run.
-	if !args.DryRun && len(result.SourceEventIDs) > 0 {
-		if err := s.eventStore.MarkConsolidated(ctx, result.SourceEventIDs); err != nil {
-			return nil, FloopConsolidateOutput{}, fmt.Errorf("marking events consolidated: %w", err)
+	// Mark successfully-processed events as consolidated even if a later
+	// session errored. Without this, the pipeline re-processes the same
+	// events on every invocation, wasting rate limit on redundant work.
+	if !args.DryRun && result != nil && len(result.SourceEventIDs) > 0 {
+		if markErr := s.eventStore.MarkConsolidated(ctx, result.SourceEventIDs); markErr != nil {
+			s.logger.Warn("failed to mark events consolidated",
+				"count", len(result.SourceEventIDs), "error", markErr)
 		}
 	}
+	if runErr != nil {
+		return nil, FloopConsolidateOutput{}, fmt.Errorf("consolidation pipeline failed: %w", runErr)
+	}
 
 	// Build candidate summaries
 	var candidateSummaries []CandidateSummary