diff --git a/docs/escalation.md b/docs/escalation.md
new file mode 100644
index 00000000..58b97a13
--- /dev/null
+++ b/docs/escalation.md
@@ -0,0 +1,149 @@
+# Gas Town Escalation Protocol
+
+> Reference for human escalation path in Gas Town
+
+## Overview
+
+Gas Town agents can escalate issues to the human overseer when automated
+resolution isn't possible. This provides a structured channel for:
+
+- System-threatening errors (data corruption, security issues)
+- Unresolvable conflicts (merge conflicts, ambiguous requirements)
+- Design decisions requiring human judgment
+- Edge cases in molecular algebra that can't proceed without guidance
+
+## Severity Levels
+
+| Level | Priority | Description | Examples |
+|-------|----------|-------------|----------|
+| **CRITICAL** | P0 (urgent) | System-threatening, immediate attention | Data corruption, security breach, system down |
+| **HIGH** | P1 (high) | Important blocker, needs human soon | Unresolvable merge conflict, critical bug, ambiguous spec |
+| **MEDIUM** | P2 (normal) | Standard escalation, human at convenience | Design decision needed, unclear requirements |
+
+## Escalation Command
+
+Any agent can escalate directly using `gt escalate`:
+
+```bash
+# Basic escalation (default: MEDIUM severity)
+gt escalate "Database migration failed"
+
+# Critical escalation - immediate attention
+gt escalate -s CRITICAL "Data corruption detected in user table"
+
+# High priority escalation
+gt escalate -s HIGH "Merge conflict cannot be resolved automatically"
+
+# With additional details
+gt escalate -s MEDIUM "Need clarification on API design" -m "The spec mentions both REST and GraphQL..."
+```
+
+### What happens on escalation
+
+1. **Bead created**: An escalation bead (tagged `escalation`) is created for audit trail
+2. **Mail sent**: Mail is sent to the `overseer` (human operator) with appropriate priority
+3. **Activity logged**: Event logged to the activity feed for visibility
+
+## Escalation Flow
+
+```
+Any Agent                     Overseer (Human)
+    |                              |
+    | gt escalate -s HIGH "msg"    |
+    |----------------------------->|
+    |                              |
+    | [ESCALATION] msg (P1 mail)   |
+    |----------------------------->|
+    |                              |
+    |     Reviews & resolves       |
+    |                              |
+    |   bd close <esc-id>          |
+    |<-----------------------------|
+```
+
+## Mayor Startup Check
+
+On `gt prime`, the Mayor automatically checks for pending escalations:
+
+```
+## PENDING ESCALATIONS
+
+There are 3 escalation(s) awaiting human attention:
+
+  CRITICAL: 1
+  HIGH: 1
+  MEDIUM: 1
+
+  [CRITICAL] Data corruption detected (gt-abc)
+  [HIGH] Merge conflict in auth module (gt-def)
+  [MEDIUM] API design clarification needed (gt-ghi)
+
+**Action required:** Review escalations with `bd list --tag=escalation`
+Close resolved ones with `bd close <id> --reason "resolution"`
+```
+
+## When to Escalate
+
+### Agents SHOULD escalate when:
+
+- **System errors**: Database corruption, disk full, network failures
+- **Security issues**: Unauthorized access attempts, credential exposure
+- **Unresolvable conflicts**: Merge conflicts that can't be auto-resolved
+- **Ambiguous requirements**: Spec is unclear, multiple valid interpretations
+- **Design decisions**: Architectural choices that need human judgment
+- **Stuck loops**: Agent is stuck and can't make progress
+
+### Agents should NOT escalate for:
+
+- **Normal workflow**: Regular work that can proceed without human input
+- **Recoverable errors**: Transient failures that will auto-retry
+- **Information queries**: Questions that can be answered from context
+
+## Molecular Algebra Edge Cases
+
+All edge cases in molecular algebra should escalate rather than fail silently:
+
+```go
+// Example: Molecule step has conflicting dependencies
+if hasConflictingDeps {
+    // Don't fail silently - escalate
+    exec.Command("gt", "escalate", "-s", "HIGH",
+        "Molecule step has conflicting dependencies: "+stepID).Run()
+}
+```
+
+This ensures:
+1. Issues are visible to humans
+2. Audit trail exists for debugging
+3. System doesn't silently break
+
+## Viewing Escalations
+
+```bash
+# List all open escalations
+bd list --status=open --tag=escalation
+
+# View specific escalation
+bd show <escalation-id>
+
+# Close resolved escalation
+bd close <id> --reason "Resolved by fixing X"
+```
+
+## Integration with Existing Flow
+
+The escalation system integrates with the existing polecat exit flow:
+
+| Exit Type | When to Use | Escalation? |
+|-----------|-------------|-------------|
+| `COMPLETED` | Work done successfully | No |
+| `ESCALATED` | Hit blocker, needs human | Yes (automatic via `gt done --exit ESCALATED`) |
+| `DEFERRED` | Work paused, will resume | No |
+
+When a polecat uses `gt done --exit ESCALATED`:
+1. Witness receives the notification
+2. Witness can forward to Mayor with `ESCALATION:` subject
+3. Mayor callback handler forwards to overseer
+
+The new `gt escalate` command provides a more direct path that any agent can use,
+with structured severity levels and audit trail.
diff --git a/docs/reference.md b/docs/reference.md
index dcd7caaf..99b18467 100644
--- a/docs/reference.md
+++ b/docs/reference.md
@@ -222,6 +222,16 @@ gt mail send <addr> -s "Subject" -m "Body"
 gt mail send --human -s "..."    # To overseer
 ```
 
+### Escalation
+```bash
+gt escalate "topic"              # Default: MEDIUM severity
+gt escalate -s CRITICAL "msg"    # Urgent, immediate attention
+gt escalate -s HIGH "msg"        # Important blocker
+gt escalate -s MEDIUM "msg" -m "Details..."
+```
+
+See [escalation.md](escalation.md) for full protocol.
+
 ### Sessions
 ```bash
 gt handoff                   # Request cycle (context-aware)
diff --git a/internal/cmd/escalate.go b/internal/cmd/escalate.go
new file mode 100644
index 00000000..2d895032
--- /dev/null
+++ b/internal/cmd/escalate.go
@@ -0,0 +1,254 @@
+package cmd
+
+import (
+	"fmt"
+	"os"
+	"os/exec"
+	"strings"
+
+	"github.com/spf13/cobra"
+	"github.com/steveyegge/gastown/internal/events"
+	"github.com/steveyegge/gastown/internal/mail"
+	"github.com/steveyegge/gastown/internal/style"
+	"github.com/steveyegge/gastown/internal/workspace"
+)
+
+// Escalation severity levels.
+// These map to mail priorities and indicate urgency for human attention.
+const (
+	// SeverityCritical (P0) - System-threatening issues requiring immediate human attention.
+	// Examples: data corruption, security breach, complete system failure.
+	SeverityCritical = "CRITICAL"
+
+	// SeverityHigh (P1) - Important blockers that need human attention soon.
+	// Examples: unresolvable merge conflicts, critical blocking bugs, ambiguous requirements.
+	SeverityHigh = "HIGH"
+
+	// SeverityMedium (P2) - Standard escalations for human attention at convenience.
+	// Examples: unclear requirements, design decisions needed, non-blocking issues.
+	SeverityMedium = "MEDIUM"
+)
+
+var escalateCmd = &cobra.Command{
+	Use:     "escalate <topic>",
+	GroupID: GroupComm,
+	Short:   "Escalate an issue to the human overseer",
+	Long: `Escalate an issue to the human overseer for attention.
+
+This is the structured escalation channel for Gas Town. Any agent can use this
+to request human intervention when automated resolution isn't possible.
+
+Severity levels:
+  CRITICAL (P0) - System-threatening, immediate attention required
+                  Examples: data corruption, security breach, system down
+  HIGH     (P1) - Important blocker, needs human soon
+                  Examples: unresolvable conflict, critical bug, ambiguous spec
+  MEDIUM   (P2) - Standard escalation, human attention at convenience
+                  Examples: design decision needed, unclear requirements
+
+The escalation creates an audit trail bead and sends mail to the overseer
+with appropriate priority. All molecular algebra edge cases should escalate
+here rather than failing silently.
+
+Examples:
+  gt escalate "Database migration failed"
+  gt escalate -s CRITICAL "Data corruption detected in user table"
+  gt escalate -s HIGH "Merge conflict cannot be resolved automatically"
+  gt escalate -s MEDIUM "Need clarification on API design" -m "Details here..."`,
+	Args: cobra.MinimumNArgs(1),
+	RunE: runEscalate,
+}
+
+var (
+	escalateSeverity string
+	escalateMessage  string
+	escalateDryRun   bool
+)
+
+func init() {
+	escalateCmd.Flags().StringVarP(&escalateSeverity, "severity", "s", SeverityMedium,
+		"Severity level: CRITICAL, HIGH, or MEDIUM")
+	escalateCmd.Flags().StringVarP(&escalateMessage, "message", "m", "",
+		"Additional details about the escalation")
+	escalateCmd.Flags().BoolVarP(&escalateDryRun, "dry-run", "n", false,
+		"Show what would be done without executing")
+	rootCmd.AddCommand(escalateCmd)
+}
+
+func runEscalate(cmd *cobra.Command, args []string) error {
+	topic := strings.Join(args, " ")
+
+	// Validate severity
+	severity := strings.ToUpper(escalateSeverity)
+	if severity != SeverityCritical && severity != SeverityHigh && severity != SeverityMedium {
+		return fmt.Errorf("invalid severity '%s': must be CRITICAL, HIGH, or MEDIUM", escalateSeverity)
+	}
+
+	// Map severity to mail priority
+	var priority mail.Priority
+	switch severity {
+	case SeverityCritical:
+		priority = mail.PriorityUrgent
+	case SeverityHigh:
+		priority = mail.PriorityHigh
+	default:
+		priority = mail.PriorityNormal
+	}
+
+	// Find workspace
+	townRoot, err := workspace.FindFromCwdOrError()
+	if err != nil {
+		return fmt.Errorf("not in a Gas Town workspace: %w", err)
+	}
+
+	// Detect agent identity
+	agentID, err := detectAgentIdentity()
+	if err != nil {
+		agentID = "unknown"
+	}
+
+	// Build mail subject with severity tag
+	subject := fmt.Sprintf("[%s] %s", severity, topic)
+
+	// Build mail body
+	var bodyParts []string
+	bodyParts = append(bodyParts, fmt.Sprintf("Escalated by: %s", agentID))
+	bodyParts = append(bodyParts, fmt.Sprintf("Severity: %s", severity))
+	if escalateMessage != "" {
+		bodyParts = append(bodyParts, "")
+		bodyParts = append(bodyParts, escalateMessage)
+	}
+	body := strings.Join(bodyParts, "\n")
+
+	// Dry run mode
+	if escalateDryRun {
+		fmt.Printf("Would create escalation:\n")
+		fmt.Printf("  Severity: %s\n", severity)
+		fmt.Printf("  Priority: %s\n", priority)
+		fmt.Printf("  Subject:  %s\n", subject)
+		fmt.Printf("  Body:\n%s\n", indentText(body, "    "))
+		fmt.Printf("Would send mail to: overseer\n")
+		return nil
+	}
+
+	// Create escalation bead for audit trail
+	beadID, err := createEscalationBead(topic, severity, agentID, escalateMessage)
+	if err != nil {
+		// Non-fatal - escalation mail is more important
+		style.PrintWarning("could not create escalation bead: %v", err)
+	} else {
+		fmt.Printf("%s Created escalation bead: %s\n", style.Bold.Render("📋"), beadID)
+	}
+
+	// Send mail to overseer
+	router := mail.NewRouter(townRoot)
+	msg := &mail.Message{
+		From:     agentID,
+		To:       "overseer",
+		Subject:  subject,
+		Body:     body,
+		Priority: priority,
+	}
+
+	if err := router.Send(msg); err != nil {
+		return fmt.Errorf("sending escalation mail: %w", err)
+	}
+
+	// Log to activity feed
+	payload := events.EscalationPayload("", agentID, "overseer", topic)
+	payload["severity"] = severity
+	if beadID != "" {
+		payload["bead"] = beadID
+	}
+	_ = events.LogFeed(events.TypeEscalationSent, agentID, payload)
+
+	// Print confirmation with severity-appropriate styling
+	var emoji string
+	switch severity {
+	case SeverityCritical:
+		emoji = "🚨"
+	case SeverityHigh:
+		emoji = "⚠️"
+	default:
+		emoji = "📢"
+	}
+
+	fmt.Printf("%s Escalation sent to overseer [%s]\n", emoji, severity)
+	fmt.Printf("   Topic: %s\n", topic)
+	if beadID != "" {
+		fmt.Printf("   Bead:  %s\n", beadID)
+	}
+
+	return nil
+}
+
+// detectAgentIdentity returns the current agent's identity string.
+func detectAgentIdentity() (string, error) {
+	// Try GT_ROLE first
+	if role := os.Getenv("GT_ROLE"); role != "" {
+		return role, nil
+	}
+
+	// Try to detect from cwd
+	agentID, _, _, err := resolveSelfTarget()
+	if err != nil {
+		return "", err
+	}
+	return agentID, nil
+}
+
+// createEscalationBead creates a bead to track the escalation.
+func createEscalationBead(topic, severity, from, details string) (string, error) {
+	// Use bd create to make the escalation bead
+	args := []string{
+		"create",
+		"--title", fmt.Sprintf("[ESCALATION] %s", topic),
+		"--type", "task", // Use task type since escalation isn't a standard type
+		"--priority", severityToBeadsPriority(severity),
+	}
+
+	// Add description with escalation metadata
+	desc := fmt.Sprintf("Escalation from: %s\nSeverity: %s\n", from, severity)
+	if details != "" {
+		desc += "\n" + details
+	}
+	args = append(args, "--description", desc)
+
+	// Add tag for filtering
+	args = append(args, "--tag", "escalation")
+
+	cmd := exec.Command("bd", args...)
+	out, err := cmd.Output()
+	if err != nil {
+		return "", fmt.Errorf("bd create: %w", err)
+	}
+
+	// Parse bead ID from output (bd create outputs: "Created bead: gt-xxxxx")
+	output := strings.TrimSpace(string(out))
+	parts := strings.Split(output, ": ")
+	if len(parts) >= 2 {
+		return strings.TrimSpace(parts[len(parts)-1]), nil
+	}
+	return "", fmt.Errorf("could not parse bead ID from: %s", output)
+}
+
+// severityToBeadsPriority converts severity to beads priority string.
+func severityToBeadsPriority(severity string) string {
+	switch severity {
+	case SeverityCritical:
+		return "0" // P0
+	case SeverityHigh:
+		return "1" // P1
+	default:
+		return "2" // P2
+	}
+}
+
+// indentText indents each line of text with the given prefix.
+func indentText(text, prefix string) string {
+	lines := strings.Split(text, "\n")
+	for i, line := range lines {
+		lines[i] = prefix + line
+	}
+	return strings.Join(lines, "\n")
+}
diff --git a/internal/cmd/prime.go b/internal/cmd/prime.go
index 150dd234..f6d64eac 100644
--- a/internal/cmd/prime.go
+++ b/internal/cmd/prime.go
@@ -135,6 +135,11 @@ func runPrime(cmd *cobra.Command, args []string) error {
 	// Run gt mail check --inject to inject any pending mail
 	runMailCheckInject(cwd)
 
+	// For Mayor, check for pending escalations
+	if ctx.Role == RoleMayor {
+		checkPendingEscalations(ctx)
+	}
+
 	// Output startup directive for roles that should announce themselves
 	// Skip if in autonomous mode (slung work provides its own directive)
 	if !hasSlungWork {
@@ -1298,3 +1303,90 @@ func ensureBeadsRedirect(ctx RoleContext) {
 	// Note: We don't print a message here to avoid cluttering prime output
 	// The redirect is silently restored
 }
+
+// checkPendingEscalations queries for open escalation beads and displays them prominently.
+// This is called on Mayor startup to surface issues needing human attention.
+func checkPendingEscalations(ctx RoleContext) {
+	// Query for open escalations using bd list with tag filter
+	cmd := exec.Command("bd", "list", "--status=open", "--tag=escalation", "--json")
+	cmd.Dir = ctx.WorkDir
+
+	var stdout, stderr bytes.Buffer
+	cmd.Stdout = &stdout
+	cmd.Stderr = &stderr
+
+	if err := cmd.Run(); err != nil {
+		// Silently skip - escalation check is best-effort
+		return
+	}
+
+	// Parse JSON output
+	var escalations []struct {
+		ID          string `json:"id"`
+		Title       string `json:"title"`
+		Priority    int    `json:"priority"`
+		Description string `json:"description"`
+		Created     string `json:"created"`
+	}
+
+	if err := json.Unmarshal(stdout.Bytes(), &escalations); err != nil || len(escalations) == 0 {
+		// No escalations or parse error
+		return
+	}
+
+	// Count by severity
+	critical := 0
+	high := 0
+	medium := 0
+	for _, e := range escalations {
+		switch e.Priority {
+		case 0:
+			critical++
+		case 1:
+			high++
+		default:
+			medium++
+		}
+	}
+
+	// Display prominently
+	fmt.Println()
+	fmt.Printf("%s\n\n", style.Bold.Render("## 🚨 PENDING ESCALATIONS"))
+	fmt.Printf("There are %d escalation(s) awaiting human attention:\n\n", len(escalations))
+
+	if critical > 0 {
+		fmt.Printf("  🔴 CRITICAL: %d\n", critical)
+	}
+	if high > 0 {
+		fmt.Printf("  🟠 HIGH: %d\n", high)
+	}
+	if medium > 0 {
+		fmt.Printf("  🟡 MEDIUM: %d\n", medium)
+	}
+	fmt.Println()
+
+	// Show first few escalations
+	maxShow := 5
+	if len(escalations) < maxShow {
+		maxShow = len(escalations)
+	}
+	for i := 0; i < maxShow; i++ {
+		e := escalations[i]
+		severity := "MEDIUM"
+		switch e.Priority {
+		case 0:
+			severity = "CRITICAL"
+		case 1:
+			severity = "HIGH"
+		}
+		fmt.Printf("  • [%s] %s (%s)\n", severity, e.Title, e.ID)
+	}
+	if len(escalations) > maxShow {
+		fmt.Printf("  ... and %d more\n", len(escalations)-maxShow)
+	}
+	fmt.Println()
+
+	fmt.Println("**Action required:** Review escalations with `bd list --tag=escalation`")
+	fmt.Println("Close resolved ones with `bd close <id> --reason \"resolution\"`")
+	fmt.Println()
+}