diff --git a/ralph_loop.sh b/ralph_loop.sh
index 5292976..84a7e78 100755
--- a/ralph_loop.sh
+++ b/ralph_loop.sh
@@ -1279,6 +1279,8 @@ execute_claude_code() {
                 log_status "WARN" "Could not find result message in stream output"
                 # Keep stream output as-is for debugging
             fi
+            # Clean up temporary stream log after extraction
+            rm -f "$stream_output_file"
         fi
     else
         # BACKGROUND MODE: Original behavior with progress monitoring
@@ -1314,6 +1316,7 @@ execute_claude_code() {
 
         # Get PID and monitor progress
         local claude_pid=$!
+        _CLAUDE_PID=$claude_pid
         local progress_counter=0
 
         # Early failure detection: if the command doesn't exist or fails immediately,
@@ -1389,6 +1392,7 @@ EOF
         # Wait for the process to finish and get exit code
         wait $claude_pid
         exit_code=$?
+        _CLAUDE_PID=""
     fi
 
     if [ $exit_code -eq 0 ]; then
@@ -1518,17 +1522,35 @@ EOF
 
 # Cleanup function
 cleanup() {
-    log_status "INFO" "Ralph loop interrupted. Cleaning up..."
-    reset_session "manual_interrupt"
-    update_status "$loop_count" "$(cat "$CALL_COUNT_FILE" 2>/dev/null || echo "0")" "interrupted" "stopped"
-    exit 0
+    local trap_exit_code=${1:-$?}
+    # Reentrancy guard — prevent double execution from EXIT + signal combination
+    if [[ "$_CLEANUP_DONE" == "true" ]]; then return; fi
+    _CLEANUP_DONE=true
+
+    # Kill background Claude process if still running
+    if [[ -n "$_CLAUDE_PID" ]] && kill -0 "$_CLAUDE_PID" 2>/dev/null; then
+        kill "$_CLAUDE_PID" 2>/dev/null || true
+        wait "$_CLAUDE_PID" 2>/dev/null || true
+    fi
+    _CLAUDE_PID=""
+
+    # Only record "interrupted" status for abnormal exits (non-zero exit code)
+    # Normal exit (code 0) preserves the status already written by the main loop
+    if [[ $loop_count -gt 0 && $trap_exit_code -ne 0 ]]; then
+        log_status "INFO" "Ralph loop interrupted. Cleaning up..."
+        reset_session "manual_interrupt"
+        update_status "$loop_count" "$(cat "$CALL_COUNT_FILE" 2>/dev/null || echo "0")" "interrupted" "stopped"
+    fi
+    # No exit here — EXIT trap handles natural termination
 }
 
-# Set up signal handlers
-trap cleanup SIGINT SIGTERM
+# Set up signal handlers — EXIT covers SIGINT, SIGTERM, set -e errors, and normal exit
+trap 'cleanup $?' EXIT
 
-# Global variable for loop count (needed by cleanup function)
+# Global variables for cleanup
 loop_count=0
+_CLAUDE_PID=""
+_CLEANUP_DONE=false
 
 # Main loop
 main() {
@@ -1600,6 +1622,10 @@ main() {
     # Initialize session tracking before entering the loop
     init_session_tracking
 
+    # Reset stale exit signals from previous session (SIGKILL/OOM recovery)
+    echo '{"test_only_loops": [], "done_signals": [], "completion_indicators": []}' > "$EXIT_SIGNALS_FILE"
+    rm -f "$RALPH_DIR/.response_analysis"
+
     log_status "INFO" "Starting main loop..."
 
     while true; do
diff --git a/tests/unit/test_session_continuity.bats b/tests/unit/test_session_continuity.bats
index 6236ff8..539b8e0 100644
--- a/tests/unit/test_session_continuity.bats
+++ b/tests/unit/test_session_continuity.bats
@@ -148,7 +148,7 @@ function_exists_in_ralph() {
 
 @test "cleanup function includes session reset" {
     # Check if cleanup function includes reset_session
-    run grep -A5 'cleanup()' "${BATS_TEST_DIRNAME}/../../ralph_loop.sh"
+    run grep -A20 'cleanup()' "${BATS_TEST_DIRNAME}/../../ralph_loop.sh"
 
     [[ "$output" == *"reset_session"* ]] || skip "Cleanup session reset not yet implemented"
 }