diff --git a/loop.sh b/loop.sh
index 07e73aa..9b6a396 100755
--- a/loop.sh
+++ b/loop.sh
@@ -348,13 +348,17 @@ while [ "$ITERATION" -lt "$MAX_ITERATIONS" ]; do
         exit 0
     fi
 
-    GENERATOR_OUTPUT=$(run_agent "$GENERATOR_PROMPT" "generator")
-
-    # In interactive mode, generator output is empty (displayed in terminal, not captured).
-    # State is tracked via prd.json — the generator updates it directly.
-    if [ "${LOOP_HEADLESS:-false}" = "true" ] && [ -z "$GENERATOR_OUTPUT" ]; then
-        log "WARNING: Generator produced empty output (timeout or crash). Skipping to next iteration."
-        continue
+    if [ "${LOOP_HEADLESS:-false}" != "true" ]; then
+        # Interactive: run directly, no capture. User sees full CC UI.
+        run_agent "$GENERATOR_PROMPT" "generator"
+        GENERATOR_OUTPUT=""
+    else
+        # Headless: capture output for parsing.
+        GENERATOR_OUTPUT=$(run_agent "$GENERATOR_PROMPT" "generator")
+        if [ -z "$GENERATOR_OUTPUT" ]; then
+            log "WARNING: Generator produced empty output (timeout or crash). Skipping to next iteration."
+            continue
+        fi
     fi
 
     # --- Scope budget check ---
@@ -377,8 +381,14 @@ while [ "$ITERATION" -lt "$MAX_ITERATIONS" ]; do
         export SCOPE_FILES_MODIFIED SCOPE_LINES_WRITTEN
     fi
 
-    # Check for completion sentinel
-    if echo "$GENERATOR_OUTPUT" | grep -q "<promise>COMPLETE</promise>"; then
+    # Check for completion — in interactive mode, check prd.json directly
+    if all_stories_pass 2>/dev/null; then
+        log_header "All Stories Complete! ($(story_counts))"
+        snapshot_for_archive
+        exit 0
+    fi
+    # Headless mode: also check output sentinel
+    if [ -n "$GENERATOR_OUTPUT" ] && echo "$GENERATOR_OUTPUT" | grep -q "<promise>COMPLETE</promise>"; then
         log_header "Generator signaled COMPLETE ($(story_counts))"
         snapshot_for_archive
         exit 0
@@ -394,14 +404,21 @@ while [ "$ITERATION" -lt "$MAX_ITERATIONS" ]; do
         fi
 
         EVAL_PROMPT=$(build_prompt "evaluator" "$MODE")
-        EVAL_OUTPUT=$(run_agent "$EVAL_PROMPT" "evaluator")
 
-        if [ -z "$EVAL_OUTPUT" ]; then
-            # In interactive mode, check the verdict file
+        if [ "${LOOP_HEADLESS:-false}" != "true" ]; then
+            # Interactive: run directly, read verdict from file.
+            run_agent "$EVAL_PROMPT" "evaluator"
             if [ -f "$LOOP_DIR/.verdict" ]; then
                 EVAL_OUTPUT=$(cat "$LOOP_DIR/.verdict")
             else
-                log "WARNING: Evaluator produced no output and no verdict file. Treating as REJECT."
+                log "WARNING: No verdict file found. Treating as REJECT."
+                EVAL_OUTPUT="<verdict>REJECT</verdict><rejection_reason>Evaluator produced no verdict file</rejection_reason>"
+            fi
+        else
+            # Headless: capture output for parsing.
+            EVAL_OUTPUT=$(run_agent "$EVAL_PROMPT" "evaluator")
+            if [ -z "$EVAL_OUTPUT" ]; then
+                log "WARNING: Evaluator produced empty output. Treating as REJECT."
                 EVAL_OUTPUT="<verdict>REJECT</verdict><rejection_reason>Evaluator produced no output</rejection_reason>"
             fi
         fi