diff --git a/README.md b/README.md
index 3df9236..b1e1455 100644
--- a/README.md
+++ b/README.md
@@ -44,6 +44,21 @@ theme toggle that initially follows the operating-system preference.
 The gRPC service owns schema migrations. The dashboard is read-only, uses its
 own `dashboard.cfg.toml`, and does not run migrations.
 
+AdminPanel settlement review supports `IgnoreSettlement` through the authenticated
+GL admin connection. Operators with `ledgerops.retry_kuknossettlement` can review an
+unlocked `MANUAL_REVIEW` or `RETRYABLE` settlement and record a reason to close it.
+GL atomically sets `IGNORED`, records the actor/reason/status transition in
+`kuknos_settlement_operator_audits`, and resolves linked open reconciliation issues.
+The original error and signed payload remain available as evidence. Ignored
+settlements are terminal, cannot be retried, and leave the attention queue.
+Dismissal does not confirm a payment or reverse funds; IRT withdrawal reservations
+still require financial reconciliation.
+
+Deploy the updated GL service first so its startup applies migration
+`000007_ignore_settlement.up.sql` and exposes the RPC, then deploy Wallet and
+AdminPanel. An older GL service rejects the command; AdminPanel preserves the
+review form and shows the error rather than reporting a successful dismissal.
+
 Run the dashboard load test against a started dashboard with:
 
 ```bash
diff --git a/application/settlement/service.go b/application/settlement/service.go
index 169b204..5ba392f 100644
--- a/application/settlement/service.go
+++ b/application/settlement/service.go
@@ -5,6 +5,7 @@ import (
 	"crypto/rand"
 	"encoding/hex"
 	"fmt"
+	"strings"
 	"time"
 
 	"gl/domain/ledger"
@@ -14,6 +15,15 @@ type EnqueueRepository interface {
 	Enqueue(context.Context, ledger.Settlement) (ledger.Settlement, bool, error)
 	Get(context.Context, string, string) (ledger.Settlement, error)
 	RetryByOperator(context.Context, string, string, string, time.Time) (ledger.Settlement, error)
+	IgnoreByOperator(context.Context, string, string, string) (ledger.Settlement, error)
+}
+
+func (s *Service) IgnoreByOperator(ctx context.Context, settlementID, actorID, reason string) (ledger.Settlement, error) {
+	settlementID, actorID, reason = strings.TrimSpace(settlementID), strings.TrimSpace(actorID), strings.TrimSpace(reason)
+	if settlementID == "" || actorID == "" || reason == "" || len([]rune(reason)) > 500 {
+		return ledger.Settlement{}, fmt.Errorf("settlement id, actor id, and a reason of at most 500 characters are required")
+	}
+	return s.repository.IgnoreByOperator(ctx, settlementID, actorID, reason)
 }
 
 func (s *Service) RetryByOperator(ctx context.Context, settlementID, actorID, reason string) (ledger.Settlement, error) {
diff --git a/application/settlement/service_test.go b/application/settlement/service_test.go
index f9f5b9f..246191b 100644
--- a/application/settlement/service_test.go
+++ b/application/settlement/service_test.go
@@ -23,6 +23,28 @@ func (r *serviceRepository) RetryByOperator(_ context.Context, id, actor, reason
 	return ledger.Settlement{ID: id, Status: ledger.SettlementRetryable}, nil
 }
 
+func (r *serviceRepository) IgnoreByOperator(_ context.Context, id, actor, reason string) (ledger.Settlement, error) {
+	r.retriedID, r.actor, r.reason = id, actor, reason
+	return ledger.Settlement{ID: id, Status: ledger.SettlementIgnored}, nil
+}
+
+func TestIgnoreByOperatorRequiresReviewedAuditIdentity(t *testing.T) {
+	repository := &serviceRepository{}
+	service := NewService(repository)
+	for _, reason := range []string{"", "   "} {
+		if _, err := service.IgnoreByOperator(context.Background(), "id", "actor", reason); err == nil {
+			t.Fatal("expected blank review reason to be rejected")
+		}
+	}
+	if repository.retriedID != "" {
+		t.Fatal("invalid dismissal reached repository")
+	}
+	got, err := service.IgnoreByOperator(context.Background(), "id", "actor-7", "  cannot complete  ")
+	if err != nil || got.Status != ledger.SettlementIgnored || repository.actor != "actor-7" || repository.reason != "cannot complete" {
+		t.Fatalf("unexpected dismissal: %+v repo=%+v err=%v", got, repository, err)
+	}
+}
+
 func TestRetryByOperatorRequiresCompleteAuditIdentity(t *testing.T) {
 	service := NewService(&serviceRepository{})
 	if _, err := service.RetryByOperator(context.Background(), "id", "actor", ""); err == nil {
diff --git a/domain/ledger/settlement.go b/domain/ledger/settlement.go
index 5dec533..be0628b 100644
--- a/domain/ledger/settlement.go
+++ b/domain/ledger/settlement.go
@@ -18,6 +18,7 @@ const (
 	SettlementConfirmed    SettlementStatus = "CONFIRMED"
 	SettlementRetryable    SettlementStatus = "RETRYABLE"
 	SettlementManualReview SettlementStatus = "MANUAL_REVIEW"
+	SettlementIgnored      SettlementStatus = "IGNORED"
 )
 
 type Settlement struct {
@@ -45,7 +46,7 @@ func (s Settlement) Validate() error {
 	if s.ID == "" || s.SourceService == "" || s.SourceTxID == "" || s.IdempotencyKey == "" {
 		return fmt.Errorf("settlement identity fields are required")
 	}
-	if s.Status != SettlementPending && s.Status != SettlementSubmitted && s.Status != SettlementConfirmed && s.Status != SettlementRetryable && s.Status != SettlementManualReview {
+	if s.Status != SettlementPending && s.Status != SettlementSubmitted && s.Status != SettlementConfirmed && s.Status != SettlementRetryable && s.Status != SettlementManualReview && s.Status != SettlementIgnored {
 		return fmt.Errorf("invalid settlement status %q", s.Status)
 	}
 	if s.Attempts < 0 || s.AvailableAt.IsZero() {
diff --git a/gen/ledger/v1/msg.pb.go b/gen/ledger/v1/msg.pb.go
index f3066dc..a3f63a1 100644
--- a/gen/ledger/v1/msg.pb.go
+++ b/gen/ledger/v1/msg.pb.go
@@ -2313,6 +2313,110 @@ func (x *RetrySettlementResponse) GetSettlement() *Settlement {
 	return nil
 }
 
+type IgnoreSettlementRequest struct {
+	state         protoimpl.MessageState `protogen:"open.v1"`
+	SettlementId  string                 `protobuf:"bytes,1,opt,name=settlement_id,json=settlementId,proto3" json:"settlement_id,omitempty"`
+	ActorId       string                 `protobuf:"bytes,2,opt,name=actor_id,json=actorId,proto3" json:"actor_id,omitempty"`
+	Reason        string                 `protobuf:"bytes,3,opt,name=reason,proto3" json:"reason,omitempty"`
+	unknownFields protoimpl.UnknownFields
+	sizeCache     protoimpl.SizeCache
+}
+
+func (x *IgnoreSettlementRequest) Reset() {
+	*x = IgnoreSettlementRequest{}
+	mi := &file_ledger_v1_msg_proto_msgTypes[29]
+	ms := protoimpl.X.MessageStateOf(protoimpl.Pointer(x))
+	ms.StoreMessageInfo(mi)
+}
+
+func (x *IgnoreSettlementRequest) String() string {
+	return protoimpl.X.MessageStringOf(x)
+}
+
+func (*IgnoreSettlementRequest) ProtoMessage() {}
+
+func (x *IgnoreSettlementRequest) ProtoReflect() protoreflect.Message {
+	mi := &file_ledger_v1_msg_proto_msgTypes[29]
+	if x != nil {
+		ms := protoimpl.X.MessageStateOf(protoimpl.Pointer(x))
+		if ms.LoadMessageInfo() == nil {
+			ms.StoreMessageInfo(mi)
+		}
+		return ms
+	}
+	return mi.MessageOf(x)
+}
+
+// Deprecated: Use IgnoreSettlementRequest.ProtoReflect.Descriptor instead.
+func (*IgnoreSettlementRequest) Descriptor() ([]byte, []int) {
+	return file_ledger_v1_msg_proto_rawDescGZIP(), []int{29}
+}
+
+func (x *IgnoreSettlementRequest) GetSettlementId() string {
+	if x != nil {
+		return x.SettlementId
+	}
+	return ""
+}
+
+func (x *IgnoreSettlementRequest) GetActorId() string {
+	if x != nil {
+		return x.ActorId
+	}
+	return ""
+}
+
+func (x *IgnoreSettlementRequest) GetReason() string {
+	if x != nil {
+		return x.Reason
+	}
+	return ""
+}
+
+type IgnoreSettlementResponse struct {
+	state         protoimpl.MessageState `protogen:"open.v1"`
+	Settlement    *Settlement            `protobuf:"bytes,1,opt,name=settlement,proto3" json:"settlement,omitempty"`
+	unknownFields protoimpl.UnknownFields
+	sizeCache     protoimpl.SizeCache
+}
+
+func (x *IgnoreSettlementResponse) Reset() {
+	*x = IgnoreSettlementResponse{}
+	mi := &file_ledger_v1_msg_proto_msgTypes[30]
+	ms := protoimpl.X.MessageStateOf(protoimpl.Pointer(x))
+	ms.StoreMessageInfo(mi)
+}
+
+func (x *IgnoreSettlementResponse) String() string {
+	return protoimpl.X.MessageStringOf(x)
+}
+
+func (*IgnoreSettlementResponse) ProtoMessage() {}
+
+func (x *IgnoreSettlementResponse) ProtoReflect() protoreflect.Message {
+	mi := &file_ledger_v1_msg_proto_msgTypes[30]
+	if x != nil {
+		ms := protoimpl.X.MessageStateOf(protoimpl.Pointer(x))
+		if ms.LoadMessageInfo() == nil {
+			ms.StoreMessageInfo(mi)
+		}
+		return ms
+	}
+	return mi.MessageOf(x)
+}
+
+// Deprecated: Use IgnoreSettlementResponse.ProtoReflect.Descriptor instead.
+func (*IgnoreSettlementResponse) Descriptor() ([]byte, []int) {
+	return file_ledger_v1_msg_proto_rawDescGZIP(), []int{30}
+}
+
+func (x *IgnoreSettlementResponse) GetSettlement() *Settlement {
+	if x != nil {
+		return x.Settlement
+	}
+	return nil
+}
+
 var File_ledger_v1_msg_proto protoreflect.FileDescriptor
 
 const file_ledger_v1_msg_proto_rawDesc = "" +
@@ -2525,6 +2629,14 @@ const file_ledger_v1_msg_proto_rawDesc = "" +
 	"\x17RetrySettlementResponse\x125\n" +
 	"\n" +
 	"settlement\x18\x01 \x01(\v2\x15.ledger.v1.SettlementR\n" +
+	"settlement\"q\n" +
+	"\x17IgnoreSettlementRequest\x12#\n" +
+	"\rsettlement_id\x18\x01 \x01(\tR\fsettlementId\x12\x19\n" +
+	"\bactor_id\x18\x02 \x01(\tR\aactorId\x12\x16\n" +
+	"\x06reason\x18\x03 \x01(\tR\x06reason\"Q\n" +
+	"\x18IgnoreSettlementResponse\x125\n" +
+	"\n" +
+	"settlement\x18\x01 \x01(\v2\x15.ledger.v1.SettlementR\n" +
 	"settlement*\x9a\x02\n" +
 	"\fAccountClass\x12\x1d\n" +
 	"\x19ACCOUNT_CLASS_UNSPECIFIED\x10\x00\x12 \n" +
@@ -2559,7 +2671,7 @@ func file_ledger_v1_msg_proto_rawDescGZIP() []byte {
 }
 
 var file_ledger_v1_msg_proto_enumTypes = make([]protoimpl.EnumInfo, 2)
-var file_ledger_v1_msg_proto_msgTypes = make([]protoimpl.MessageInfo, 32)
+var file_ledger_v1_msg_proto_msgTypes = make([]protoimpl.MessageInfo, 34)
 var file_ledger_v1_msg_proto_goTypes = []any{
 	(AccountClass)(0),                      // 0: ledger.v1.AccountClass
 	(TransactionState)(0),                  // 1: ledger.v1.TransactionState
@@ -2592,50 +2704,53 @@ var file_ledger_v1_msg_proto_goTypes = []any{
 	(*Settlement)(nil),                     // 28: ledger.v1.Settlement
 	(*RetrySettlementRequest)(nil),         // 29: ledger.v1.RetrySettlementRequest
 	(*RetrySettlementResponse)(nil),        // 30: ledger.v1.RetrySettlementResponse
-	nil,                                    // 31: ledger.v1.Journal.MetadataEntry
-	nil,                                    // 32: ledger.v1.AppendJournalRequest.MetadataEntry
-	nil,                                    // 33: ledger.v1.AppendTransactionEventRequest.MetadataEntry
-	(*timestamppb.Timestamp)(nil),          // 34: google.protobuf.Timestamp
+	(*IgnoreSettlementRequest)(nil),        // 31: ledger.v1.IgnoreSettlementRequest
+	(*IgnoreSettlementResponse)(nil),       // 32: ledger.v1.IgnoreSettlementResponse
+	nil,                                    // 33: ledger.v1.Journal.MetadataEntry
+	nil,                                    // 34: ledger.v1.AppendJournalRequest.MetadataEntry
+	nil,                                    // 35: ledger.v1.AppendTransactionEventRequest.MetadataEntry
+	(*timestamppb.Timestamp)(nil),          // 36: google.protobuf.Timestamp
 }
 var file_ledger_v1_msg_proto_depIdxs = []int32{
-	34, // 0: ledger.v1.OperatingModeResponse.changed_at:type_name -> google.protobuf.Timestamp
+	36, // 0: ledger.v1.OperatingModeResponse.changed_at:type_name -> google.protobuf.Timestamp
 	5,  // 1: ledger.v1.GetUserBalancesResponse.balances:type_name -> ledger.v1.UserAssetBalance
 	0,  // 2: ledger.v1.AccountReference.account_class:type_name -> ledger.v1.AccountClass
 	7,  // 3: ledger.v1.JournalEntry.account:type_name -> ledger.v1.AccountReference
 	8,  // 4: ledger.v1.Journal.entries:type_name -> ledger.v1.JournalEntry
-	34, // 5: ledger.v1.Journal.occurred_at:type_name -> google.protobuf.Timestamp
-	34, // 6: ledger.v1.Journal.recorded_at:type_name -> google.protobuf.Timestamp
+	36, // 5: ledger.v1.Journal.occurred_at:type_name -> google.protobuf.Timestamp
+	36, // 6: ledger.v1.Journal.recorded_at:type_name -> google.protobuf.Timestamp
 	9,  // 7: ledger.v1.Journal.blockchain:type_name -> ledger.v1.BlockchainReference
-	31, // 8: ledger.v1.Journal.metadata:type_name -> ledger.v1.Journal.MetadataEntry
+	33, // 8: ledger.v1.Journal.metadata:type_name -> ledger.v1.Journal.MetadataEntry
 	8,  // 9: ledger.v1.AppendJournalRequest.entries:type_name -> ledger.v1.JournalEntry
-	34, // 10: ledger.v1.AppendJournalRequest.occurred_at:type_name -> google.protobuf.Timestamp
+	36, // 10: ledger.v1.AppendJournalRequest.occurred_at:type_name -> google.protobuf.Timestamp
 	9,  // 11: ledger.v1.AppendJournalRequest.blockchain:type_name -> ledger.v1.BlockchainReference
-	32, // 12: ledger.v1.AppendJournalRequest.metadata:type_name -> ledger.v1.AppendJournalRequest.MetadataEntry
+	34, // 12: ledger.v1.AppendJournalRequest.metadata:type_name -> ledger.v1.AppendJournalRequest.MetadataEntry
 	10, // 13: ledger.v1.AppendJournalResponse.journal:type_name -> ledger.v1.Journal
 	1,  // 14: ledger.v1.AppendTransactionEventRequest.state:type_name -> ledger.v1.TransactionState
-	34, // 15: ledger.v1.AppendTransactionEventRequest.occurred_at:type_name -> google.protobuf.Timestamp
+	36, // 15: ledger.v1.AppendTransactionEventRequest.occurred_at:type_name -> google.protobuf.Timestamp
 	9,  // 16: ledger.v1.AppendTransactionEventRequest.blockchain:type_name -> ledger.v1.BlockchainReference
-	33, // 17: ledger.v1.AppendTransactionEventRequest.metadata:type_name -> ledger.v1.AppendTransactionEventRequest.MetadataEntry
+	35, // 17: ledger.v1.AppendTransactionEventRequest.metadata:type_name -> ledger.v1.AppendTransactionEventRequest.MetadataEntry
 	13, // 18: ledger.v1.TransactionEvent.event:type_name -> ledger.v1.AppendTransactionEventRequest
-	34, // 19: ledger.v1.TransactionEvent.recorded_at:type_name -> google.protobuf.Timestamp
+	36, // 19: ledger.v1.TransactionEvent.recorded_at:type_name -> google.protobuf.Timestamp
 	14, // 20: ledger.v1.AppendTransactionEventResponse.event:type_name -> ledger.v1.TransactionEvent
 	7,  // 21: ledger.v1.ListEntriesRequest.account:type_name -> ledger.v1.AccountReference
-	34, // 22: ledger.v1.ListEntriesRequest.recorded_from:type_name -> google.protobuf.Timestamp
-	34, // 23: ledger.v1.ListEntriesRequest.recorded_to:type_name -> google.protobuf.Timestamp
+	36, // 22: ledger.v1.ListEntriesRequest.recorded_from:type_name -> google.protobuf.Timestamp
+	36, // 23: ledger.v1.ListEntriesRequest.recorded_to:type_name -> google.protobuf.Timestamp
 	10, // 24: ledger.v1.ListEntriesResponse.journals:type_name -> ledger.v1.Journal
 	7,  // 25: ledger.v1.GetBalanceRequest.account:type_name -> ledger.v1.AccountReference
-	34, // 26: ledger.v1.GetBalanceRequest.as_of:type_name -> google.protobuf.Timestamp
+	36, // 26: ledger.v1.GetBalanceRequest.as_of:type_name -> google.protobuf.Timestamp
 	7,  // 27: ledger.v1.GetBalanceResponse.account:type_name -> ledger.v1.AccountReference
-	34, // 28: ledger.v1.GetBalanceResponse.as_of:type_name -> google.protobuf.Timestamp
+	36, // 28: ledger.v1.GetBalanceResponse.as_of:type_name -> google.protobuf.Timestamp
 	11, // 29: ledger.v1.ReplayJournalsRequest.journals:type_name -> ledger.v1.AppendJournalRequest
 	10, // 30: ledger.v1.ReplayJournalResult.journal:type_name -> ledger.v1.Journal
 	22, // 31: ledger.v1.ReplayJournalsResponse.results:type_name -> ledger.v1.ReplayJournalResult
 	28, // 32: ledger.v1.RetrySettlementResponse.settlement:type_name -> ledger.v1.Settlement
-	33, // [33:33] is the sub-list for method output_type
-	33, // [33:33] is the sub-list for method input_type
-	33, // [33:33] is the sub-list for extension type_name
-	33, // [33:33] is the sub-list for extension extendee
-	0,  // [0:33] is the sub-list for field type_name
+	28, // 33: ledger.v1.IgnoreSettlementResponse.settlement:type_name -> ledger.v1.Settlement
+	34, // [34:34] is the sub-list for method output_type
+	34, // [34:34] is the sub-list for method input_type
+	34, // [34:34] is the sub-list for extension type_name
+	34, // [34:34] is the sub-list for extension extendee
+	0,  // [0:34] is the sub-list for field type_name
 }
 
 func init() { file_ledger_v1_msg_proto_init() }
@@ -2661,7 +2776,7 @@ func file_ledger_v1_msg_proto_init() {
 			GoPackagePath: reflect.TypeOf(x{}).PkgPath(),
 			RawDescriptor: unsafe.Slice(unsafe.StringData(file_ledger_v1_msg_proto_rawDesc), len(file_ledger_v1_msg_proto_rawDesc)),
 			NumEnums:      2,
-			NumMessages:   32,
+			NumMessages:   34,
 			NumExtensions: 0,
 			NumServices:   0,
 		},
diff --git a/gen/ledger/v1/srv.pb.go b/gen/ledger/v1/srv.pb.go
index 3d21b10..42e371f 100644
--- a/gen/ledger/v1/srv.pb.go
+++ b/gen/ledger/v1/srv.pb.go
@@ -25,7 +25,7 @@ var File_ledger_v1_srv_proto protoreflect.FileDescriptor
 
 const file_ledger_v1_srv_proto_rawDesc = "" +
 	"\n" +
-	"\x13ledger/v1/srv.proto\x12\tledger.v1\x1a\x11base/v1/msg.proto\x1a\x13ledger/v1/msg.proto2\x95\t\n" +
+	"\x13ledger/v1/srv.proto\x12\tledger.v1\x1a\x11base/v1/msg.proto\x1a\x13ledger/v1/msg.proto2\xf2\t\n" +
 	"\x14GeneralLedgerService\x12D\n" +
 	"\x10GetOperatingMode\x12\x0e.base.v1.Empty\x1a .ledger.v1.OperatingModeResponse\x12X\n" +
 	"\x10SetOperatingMode\x12\".ledger.v1.SetOperatingModeRequest\x1a .ledger.v1.OperatingModeResponse\x12X\n" +
@@ -42,7 +42,8 @@ const file_ledger_v1_srv_proto_rawDesc = "" +
 	"\x0eReplayJournals\x12 .ledger.v1.ReplayJournalsRequest\x1a!.ledger.v1.ReplayJournalsResponse\x12^\n" +
 	"\x11EnqueueSettlement\x12#.ledger.v1.EnqueueSettlementRequest\x1a$.ledger.v1.EnqueueSettlementResponse\x12G\n" +
 	"\rGetSettlement\x12\x1f.ledger.v1.GetSettlementRequest\x1a\x15.ledger.v1.Settlement\x12X\n" +
-	"\x0fRetrySettlement\x12!.ledger.v1.RetrySettlementRequest\x1a\".ledger.v1.RetrySettlementResponseBy\n" +
+	"\x0fRetrySettlement\x12!.ledger.v1.RetrySettlementRequest\x1a\".ledger.v1.RetrySettlementResponse\x12[\n" +
+	"\x10IgnoreSettlement\x12\".ledger.v1.IgnoreSettlementRequest\x1a#.ledger.v1.IgnoreSettlementResponseBy\n" +
 	"\rcom.ledger.v1B\bSrvProtoP\x01Z\x19gl/gen/ledger/v1;ledgerv1\xa2\x02\x03LXX\xaa\x02\tLedger.V1\xca\x02\tLedger\\V1\xe2\x02\x15Ledger\\V1\\GPBMetadata\xea\x02\n" +
 	"Ledger::V1b\x06proto3"
 
@@ -59,18 +60,20 @@ var file_ledger_v1_srv_proto_goTypes = []any{
 	(*EnqueueSettlementRequest)(nil),       // 9: ledger.v1.EnqueueSettlementRequest
 	(*GetSettlementRequest)(nil),           // 10: ledger.v1.GetSettlementRequest
 	(*RetrySettlementRequest)(nil),         // 11: ledger.v1.RetrySettlementRequest
-	(*OperatingModeResponse)(nil),          // 12: ledger.v1.OperatingModeResponse
-	(*AppendJournalResponse)(nil),          // 13: ledger.v1.AppendJournalResponse
-	(*GetUserBalancesResponse)(nil),        // 14: ledger.v1.GetUserBalancesResponse
-	(*HealthResponse)(nil),                 // 15: ledger.v1.HealthResponse
-	(*AppendTransactionEventResponse)(nil), // 16: ledger.v1.AppendTransactionEventResponse
-	(*Journal)(nil),                        // 17: ledger.v1.Journal
-	(*ListEntriesResponse)(nil),            // 18: ledger.v1.ListEntriesResponse
-	(*GetBalanceResponse)(nil),             // 19: ledger.v1.GetBalanceResponse
-	(*ReplayJournalsResponse)(nil),         // 20: ledger.v1.ReplayJournalsResponse
-	(*EnqueueSettlementResponse)(nil),      // 21: ledger.v1.EnqueueSettlementResponse
-	(*Settlement)(nil),                     // 22: ledger.v1.Settlement
-	(*RetrySettlementResponse)(nil),        // 23: ledger.v1.RetrySettlementResponse
+	(*IgnoreSettlementRequest)(nil),        // 12: ledger.v1.IgnoreSettlementRequest
+	(*OperatingModeResponse)(nil),          // 13: ledger.v1.OperatingModeResponse
+	(*AppendJournalResponse)(nil),          // 14: ledger.v1.AppendJournalResponse
+	(*GetUserBalancesResponse)(nil),        // 15: ledger.v1.GetUserBalancesResponse
+	(*HealthResponse)(nil),                 // 16: ledger.v1.HealthResponse
+	(*AppendTransactionEventResponse)(nil), // 17: ledger.v1.AppendTransactionEventResponse
+	(*Journal)(nil),                        // 18: ledger.v1.Journal
+	(*ListEntriesResponse)(nil),            // 19: ledger.v1.ListEntriesResponse
+	(*GetBalanceResponse)(nil),             // 20: ledger.v1.GetBalanceResponse
+	(*ReplayJournalsResponse)(nil),         // 21: ledger.v1.ReplayJournalsResponse
+	(*EnqueueSettlementResponse)(nil),      // 22: ledger.v1.EnqueueSettlementResponse
+	(*Settlement)(nil),                     // 23: ledger.v1.Settlement
+	(*RetrySettlementResponse)(nil),        // 24: ledger.v1.RetrySettlementResponse
+	(*IgnoreSettlementResponse)(nil),       // 25: ledger.v1.IgnoreSettlementResponse
 }
 var file_ledger_v1_srv_proto_depIdxs = []int32{
 	0,  // 0: ledger.v1.GeneralLedgerService.GetOperatingMode:input_type -> base.v1.Empty
@@ -87,22 +90,24 @@ var file_ledger_v1_srv_proto_depIdxs = []int32{
 	9,  // 11: ledger.v1.GeneralLedgerService.EnqueueSettlement:input_type -> ledger.v1.EnqueueSettlementRequest
 	10, // 12: ledger.v1.GeneralLedgerService.GetSettlement:input_type -> ledger.v1.GetSettlementRequest
 	11, // 13: ledger.v1.GeneralLedgerService.RetrySettlement:input_type -> ledger.v1.RetrySettlementRequest
-	12, // 14: ledger.v1.GeneralLedgerService.GetOperatingMode:output_type -> ledger.v1.OperatingModeResponse
-	12, // 15: ledger.v1.GeneralLedgerService.SetOperatingMode:output_type -> ledger.v1.OperatingModeResponse
-	13, // 16: ledger.v1.GeneralLedgerService.PostInternalJournal:output_type -> ledger.v1.AppendJournalResponse
-	14, // 17: ledger.v1.GeneralLedgerService.GetUserBalances:output_type -> ledger.v1.GetUserBalancesResponse
-	15, // 18: ledger.v1.GeneralLedgerService.Health:output_type -> ledger.v1.HealthResponse
-	13, // 19: ledger.v1.GeneralLedgerService.AppendJournal:output_type -> ledger.v1.AppendJournalResponse
-	16, // 20: ledger.v1.GeneralLedgerService.AppendTransactionEvent:output_type -> ledger.v1.AppendTransactionEventResponse
-	17, // 21: ledger.v1.GeneralLedgerService.GetJournal:output_type -> ledger.v1.Journal
-	18, // 22: ledger.v1.GeneralLedgerService.ListEntries:output_type -> ledger.v1.ListEntriesResponse
-	19, // 23: ledger.v1.GeneralLedgerService.GetBalance:output_type -> ledger.v1.GetBalanceResponse
-	20, // 24: ledger.v1.GeneralLedgerService.ReplayJournals:output_type -> ledger.v1.ReplayJournalsResponse
-	21, // 25: ledger.v1.GeneralLedgerService.EnqueueSettlement:output_type -> ledger.v1.EnqueueSettlementResponse
-	22, // 26: ledger.v1.GeneralLedgerService.GetSettlement:output_type -> ledger.v1.Settlement
-	23, // 27: ledger.v1.GeneralLedgerService.RetrySettlement:output_type -> ledger.v1.RetrySettlementResponse
-	14, // [14:28] is the sub-list for method output_type
-	0,  // [0:14] is the sub-list for method input_type
+	12, // 14: ledger.v1.GeneralLedgerService.IgnoreSettlement:input_type -> ledger.v1.IgnoreSettlementRequest
+	13, // 15: ledger.v1.GeneralLedgerService.GetOperatingMode:output_type -> ledger.v1.OperatingModeResponse
+	13, // 16: ledger.v1.GeneralLedgerService.SetOperatingMode:output_type -> ledger.v1.OperatingModeResponse
+	14, // 17: ledger.v1.GeneralLedgerService.PostInternalJournal:output_type -> ledger.v1.AppendJournalResponse
+	15, // 18: ledger.v1.GeneralLedgerService.GetUserBalances:output_type -> ledger.v1.GetUserBalancesResponse
+	16, // 19: ledger.v1.GeneralLedgerService.Health:output_type -> ledger.v1.HealthResponse
+	14, // 20: ledger.v1.GeneralLedgerService.AppendJournal:output_type -> ledger.v1.AppendJournalResponse
+	17, // 21: ledger.v1.GeneralLedgerService.AppendTransactionEvent:output_type -> ledger.v1.AppendTransactionEventResponse
+	18, // 22: ledger.v1.GeneralLedgerService.GetJournal:output_type -> ledger.v1.Journal
+	19, // 23: ledger.v1.GeneralLedgerService.ListEntries:output_type -> ledger.v1.ListEntriesResponse
+	20, // 24: ledger.v1.GeneralLedgerService.GetBalance:output_type -> ledger.v1.GetBalanceResponse
+	21, // 25: ledger.v1.GeneralLedgerService.ReplayJournals:output_type -> ledger.v1.ReplayJournalsResponse
+	22, // 26: ledger.v1.GeneralLedgerService.EnqueueSettlement:output_type -> ledger.v1.EnqueueSettlementResponse
+	23, // 27: ledger.v1.GeneralLedgerService.GetSettlement:output_type -> ledger.v1.Settlement
+	24, // 28: ledger.v1.GeneralLedgerService.RetrySettlement:output_type -> ledger.v1.RetrySettlementResponse
+	25, // 29: ledger.v1.GeneralLedgerService.IgnoreSettlement:output_type -> ledger.v1.IgnoreSettlementResponse
+	15, // [15:30] is the sub-list for method output_type
+	0,  // [0:15] is the sub-list for method input_type
 	0,  // [0:0] is the sub-list for extension type_name
 	0,  // [0:0] is the sub-list for extension extendee
 	0,  // [0:0] is the sub-list for field type_name
diff --git a/gen/ledger/v1/srv_grpc.pb.go b/gen/ledger/v1/srv_grpc.pb.go
index 5a26f1a..9588c1d 100644
--- a/gen/ledger/v1/srv_grpc.pb.go
+++ b/gen/ledger/v1/srv_grpc.pb.go
@@ -34,6 +34,7 @@ const (
 	GeneralLedgerService_EnqueueSettlement_FullMethodName      = "/ledger.v1.GeneralLedgerService/EnqueueSettlement"
 	GeneralLedgerService_GetSettlement_FullMethodName          = "/ledger.v1.GeneralLedgerService/GetSettlement"
 	GeneralLedgerService_RetrySettlement_FullMethodName        = "/ledger.v1.GeneralLedgerService/RetrySettlement"
+	GeneralLedgerService_IgnoreSettlement_FullMethodName       = "/ledger.v1.GeneralLedgerService/IgnoreSettlement"
 )
 
 // GeneralLedgerServiceClient is the client API for GeneralLedgerService service.
@@ -57,6 +58,9 @@ type GeneralLedgerServiceClient interface {
 	GetSettlement(ctx context.Context, in *GetSettlementRequest, opts ...grpc.CallOption) (*Settlement, error)
 	// Restricted operator command. Requires the configured x-admin-token metadata.
 	RetrySettlement(ctx context.Context, in *RetrySettlementRequest, opts ...grpc.CallOption) (*RetrySettlementResponse, error)
+	// Operator-reviewed, terminal dismissal. Does not confirm or reverse payment.
+	// Requires x-admin-token and a recorded reason; only unlocked failed settlements.
+	IgnoreSettlement(ctx context.Context, in *IgnoreSettlementRequest, opts ...grpc.CallOption) (*IgnoreSettlementResponse, error)
 }
 
 type generalLedgerServiceClient struct {
@@ -207,6 +211,16 @@ func (c *generalLedgerServiceClient) RetrySettlement(ctx context.Context, in *Re
 	return out, nil
 }
 
+func (c *generalLedgerServiceClient) IgnoreSettlement(ctx context.Context, in *IgnoreSettlementRequest, opts ...grpc.CallOption) (*IgnoreSettlementResponse, error) {
+	cOpts := append([]grpc.CallOption{grpc.StaticMethod()}, opts...)
+	out := new(IgnoreSettlementResponse)
+	err := c.cc.Invoke(ctx, GeneralLedgerService_IgnoreSettlement_FullMethodName, in, out, cOpts...)
+	if err != nil {
+		return nil, err
+	}
+	return out, nil
+}
+
 // GeneralLedgerServiceServer is the server API for GeneralLedgerService service.
 // All implementations should embed UnimplementedGeneralLedgerServiceServer
 // for forward compatibility.
@@ -228,6 +242,9 @@ type GeneralLedgerServiceServer interface {
 	GetSettlement(context.Context, *GetSettlementRequest) (*Settlement, error)
 	// Restricted operator command. Requires the configured x-admin-token metadata.
 	RetrySettlement(context.Context, *RetrySettlementRequest) (*RetrySettlementResponse, error)
+	// Operator-reviewed, terminal dismissal. Does not confirm or reverse payment.
+	// Requires x-admin-token and a recorded reason; only unlocked failed settlements.
+	IgnoreSettlement(context.Context, *IgnoreSettlementRequest) (*IgnoreSettlementResponse, error)
 }
 
 // UnimplementedGeneralLedgerServiceServer should be embedded to have
@@ -279,6 +296,9 @@ func (UnimplementedGeneralLedgerServiceServer) GetSettlement(context.Context, *G
 func (UnimplementedGeneralLedgerServiceServer) RetrySettlement(context.Context, *RetrySettlementRequest) (*RetrySettlementResponse, error) {
 	return nil, status.Errorf(codes.Unimplemented, "method RetrySettlement not implemented")
 }
+func (UnimplementedGeneralLedgerServiceServer) IgnoreSettlement(context.Context, *IgnoreSettlementRequest) (*IgnoreSettlementResponse, error) {
+	return nil, status.Errorf(codes.Unimplemented, "method IgnoreSettlement not implemented")
+}
 func (UnimplementedGeneralLedgerServiceServer) testEmbeddedByValue() {}
 
 // UnsafeGeneralLedgerServiceServer may be embedded to opt out of forward compatibility for this service.
@@ -551,6 +571,24 @@ func _GeneralLedgerService_RetrySettlement_Handler(srv interface{}, ctx context.
 	return interceptor(ctx, in, info, handler)
 }
 
+func _GeneralLedgerService_IgnoreSettlement_Handler(srv interface{}, ctx context.Context, dec func(interface{}) error, interceptor grpc.UnaryServerInterceptor) (interface{}, error) {
+	in := new(IgnoreSettlementRequest)
+	if err := dec(in); err != nil {
+		return nil, err
+	}
+	if interceptor == nil {
+		return srv.(GeneralLedgerServiceServer).IgnoreSettlement(ctx, in)
+	}
+	info := &grpc.UnaryServerInfo{
+		Server:     srv,
+		FullMethod: GeneralLedgerService_IgnoreSettlement_FullMethodName,
+	}
+	handler := func(ctx context.Context, req interface{}) (interface{}, error) {
+		return srv.(GeneralLedgerServiceServer).IgnoreSettlement(ctx, req.(*IgnoreSettlementRequest))
+	}
+	return interceptor(ctx, in, info, handler)
+}
+
 // GeneralLedgerService_ServiceDesc is the grpc.ServiceDesc for GeneralLedgerService service.
 // It's only intended for direct use with grpc.RegisterService,
 // and not to be introspected or modified (even as a copy)
@@ -614,6 +652,10 @@ var GeneralLedgerService_ServiceDesc = grpc.ServiceDesc{
 			MethodName: "RetrySettlement",
 			Handler:    _GeneralLedgerService_RetrySettlement_Handler,
 		},
+		{
+			MethodName: "IgnoreSettlement",
+			Handler:    _GeneralLedgerService_IgnoreSettlement_Handler,
+		},
 	},
 	Streams:  []grpc.StreamDesc{},
 	Metadata: "ledger/v1/srv.proto",
diff --git a/infrastructure/postgres/journal_repository_test.go b/infrastructure/postgres/journal_repository_test.go
index a90154f..362c65d 100644
--- a/infrastructure/postgres/journal_repository_test.go
+++ b/infrastructure/postgres/journal_repository_test.go
@@ -31,6 +31,10 @@ func (r fakeRow) Scan(dest ...any) error {
 			*target = value.(string)
 		case *int64:
 			*target = value.(int64)
+		case *int:
+			*target = value.(int)
+		case *ledger.SettlementStatus:
+			*target = value.(ledger.SettlementStatus)
 		case *bool:
 			*target = value.(bool)
 		case *uint32:
diff --git a/infrastructure/postgres/migrations/000007_ignore_settlement.up.sql b/infrastructure/postgres/migrations/000007_ignore_settlement.up.sql
new file mode 100644
index 0000000..9bea594
--- /dev/null
+++ b/infrastructure/postgres/migrations/000007_ignore_settlement.up.sql
@@ -0,0 +1,7 @@
+ALTER TABLE kuknos_settlements DROP CONSTRAINT kuknos_settlements_status_check;
+ALTER TABLE kuknos_settlements ADD CONSTRAINT kuknos_settlements_status_check
+    CHECK (status IN ('PENDING','SUBMITTED','CONFIRMED','RETRYABLE','MANUAL_REVIEW','IGNORED'));
+
+ALTER TABLE kuknos_settlement_operator_audits DROP CONSTRAINT kuknos_settlement_operator_audits_action_check;
+ALTER TABLE kuknos_settlement_operator_audits ADD CONSTRAINT kuknos_settlement_operator_audits_action_check
+    CHECK (action IN ('RETRY','IGNORE'));
diff --git a/infrastructure/postgres/settlement_repository.go b/infrastructure/postgres/settlement_repository.go
index 0657dc6..09852b6 100644
--- a/infrastructure/postgres/settlement_repository.go
+++ b/infrastructure/postgres/settlement_repository.go
@@ -147,8 +147,8 @@ func (r *SettlementRepository) RetryByOperator(ctx context.Context, id, actorID,
 	if err := tx.QueryRow(ctx, `SELECT status FROM kuknos_settlements WHERE id=$1 FOR UPDATE`, id).Scan(&previous); err != nil {
 		return ledger.Settlement{}, fmt.Errorf("lock settlement for operator retry: %w", err)
 	}
-	if previous == ledger.SettlementConfirmed {
-		return ledger.Settlement{}, fmt.Errorf("confirmed settlement cannot be retried")
+	if previous == ledger.SettlementConfirmed || previous == ledger.SettlementIgnored {
+		return ledger.Settlement{}, fmt.Errorf("confirmed or ignored settlement cannot be retried")
 	}
 	if _, err := tx.Exec(ctx, `UPDATE kuknos_settlements SET status='RETRYABLE', available_at=$2, locked_at=NULL, locked_by='', last_error='', manual_review_at=NULL, updated_at=clock_timestamp() WHERE id=$1`, id, now); err != nil {
 		return ledger.Settlement{}, fmt.Errorf("retry settlement: %w", err)
@@ -162,6 +162,35 @@ func (r *SettlementRepository) RetryByOperator(ctx context.Context, id, actorID,
 	return r.Get(ctx, id, "")
 }
 
+func (r *SettlementRepository) IgnoreByOperator(ctx context.Context, id, actorID, reason string) (ledger.Settlement, error) {
+	tx, err := r.database.Begin(ctx)
+	if err != nil {
+		return ledger.Settlement{}, fmt.Errorf("begin operator dismissal: %w", err)
+	}
+	defer tx.Rollback(ctx)
+	var previous, lockedBy string
+	if err := tx.QueryRow(ctx, `SELECT status, locked_by FROM kuknos_settlements WHERE id=$1 FOR UPDATE`, id).Scan(&previous, &lockedBy); err != nil {
+		return ledger.Settlement{}, fmt.Errorf("lock settlement for dismissal: %w", err)
+	}
+	if lockedBy != "" || (previous != string(ledger.SettlementManualReview) && previous != string(ledger.SettlementRetryable)) {
+		return ledger.Settlement{}, fmt.Errorf("only unlocked settlements requiring review or retry can be ignored")
+	}
+	// Preserve the error and signed payload as evidence; this is not a payment confirmation.
+	if _, err := tx.Exec(ctx, `UPDATE kuknos_settlements SET status='IGNORED', updated_at=clock_timestamp() WHERE id=$1`, id); err != nil {
+		return ledger.Settlement{}, fmt.Errorf("ignore settlement: %w", err)
+	}
+	if _, err := tx.Exec(ctx, `INSERT INTO kuknos_settlement_operator_audits (settlement_id, actor_id, action, reason, previous_status, resulting_status) VALUES ($1,$2,'IGNORE',$3,$4,'IGNORED')`, id, actorID, reason, previous); err != nil {
+		return ledger.Settlement{}, fmt.Errorf("audit operator dismissal: %w", err)
+	}
+	if _, err := tx.Exec(ctx, `UPDATE kuknos_reconciliation_issues SET status='RESOLVED', resolved_at=clock_timestamp() WHERE settlement_id=$1 AND status='OPEN'`, id); err != nil {
+		return ledger.Settlement{}, fmt.Errorf("resolve dismissed settlement issues: %w", err)
+	}
+	if err := tx.Commit(ctx); err != nil {
+		return ledger.Settlement{}, fmt.Errorf("commit operator dismissal: %w", err)
+	}
+	return r.Get(ctx, id, "")
+}
+
 // ReconcileConfirmationEvidence durably records confirmed Kuknos settlements
 // whose latest GL lifecycle evidence is missing or has a different hash.
 func (r *SettlementRepository) ReconcileConfirmationEvidence(ctx context.Context, grace time.Duration) (ReconciliationStats, error) {
diff --git a/infrastructure/postgres/settlement_repository_test.go b/infrastructure/postgres/settlement_repository_test.go
index d2f14ae..f261c47 100644
--- a/infrastructure/postgres/settlement_repository_test.go
+++ b/infrastructure/postgres/settlement_repository_test.go
@@ -4,8 +4,51 @@ import (
 	"context"
 	"testing"
 	"time"
+
+	"gl/domain/ledger"
 )
 
+func TestIgnoreByOperatorRejectsActiveLockedAndTerminalSettlements(t *testing.T) {
+	for _, state := range []struct{ status, lock string }{
+		{"PENDING", ""}, {"SUBMITTED", ""}, {"CONFIRMED", ""}, {"IGNORED", ""}, {"RETRYABLE", "worker"},
+	} {
+		tx := &fakeTx{rows: []Row{fakeRow{values: []any{state.status, state.lock}}}}
+		repository := NewSettlementRepository(&fakeDatabase{tx: tx})
+		if _, err := repository.IgnoreByOperator(context.Background(), "id", "actor", "reviewed"); err == nil {
+			t.Fatalf("dismissed ineligible state: %+v", state)
+		}
+		if tx.execCount != 0 || tx.committed || !tx.rolledBack {
+			t.Fatalf("ineligible dismissal changed state: %+v", tx)
+		}
+	}
+}
+
+func TestIgnoreByOperatorAuditsAndResolvesAtomically(t *testing.T) {
+	tx := &fakeTx{rows: []Row{fakeRow{values: []any{"MANUAL_REVIEW", ""}}}}
+	repository := NewSettlementRepository(&fakeDatabase{tx: tx, directRow: fakeRow{values: []any{
+		"id", "wallet", "110", "wallet:110:kuknos", ledger.SettlementIgnored, "kuknos", "", 1, time.Now(), "tx_bad_seq", "signed-xdr",
+	}}})
+	got, err := repository.IgnoreByOperator(context.Background(), "id", "actor", "reviewed")
+	if err != nil || got.Status != ledger.SettlementIgnored || got.LastError != "tx_bad_seq" || !tx.committed || tx.execCount != 3 {
+		t.Fatalf("unexpected dismissal: %+v tx=%+v err=%v", got, tx, err)
+	}
+	for _, failedStep := range []int{2, 3} {
+		tx := &fakeTx{rows: []Row{fakeRow{values: []any{"RETRYABLE", ""}}}, execErrAt: failedStep}
+		repository := NewSettlementRepository(&fakeDatabase{tx: tx})
+		if _, err := repository.IgnoreByOperator(context.Background(), "id", "actor", "reviewed"); err == nil || tx.committed || !tx.rolledBack {
+			t.Fatalf("audit or issue failure did not roll back: %+v err=%v", tx, err)
+		}
+	}
+}
+
+func TestIgnoredSettlementCannotBeRetried(t *testing.T) {
+	tx := &fakeTx{rows: []Row{fakeRow{values: []any{ledger.SettlementIgnored}}}}
+	repository := NewSettlementRepository(&fakeDatabase{tx: tx})
+	if _, err := repository.RetryByOperator(context.Background(), "id", "actor", "retry", time.Now()); err == nil || tx.execCount != 0 {
+		t.Fatal("ignored settlement was queued again")
+	}
+}
+
 func TestReconcileConfirmationEvidenceCommitsDurableIssueStats(t *testing.T) {
 	tx := &fakeTx{rows: []Row{
 		fakeRow{values: []any{int64(1)}},
diff --git a/interface/grpc/settlement.go b/interface/grpc/settlement.go
index b15346a..c306666 100644
--- a/interface/grpc/settlement.go
+++ b/interface/grpc/settlement.go
@@ -38,6 +38,20 @@ func (h *Handler) RetrySettlement(ctx context.Context, request *ledgerv1.RetrySe
 	return &ledgerv1.RetrySettlementResponse{Settlement: settlementMessage(record)}, nil
 }
 
+func (h *Handler) IgnoreSettlement(ctx context.Context, request *ledgerv1.IgnoreSettlementRequest) (*ledgerv1.IgnoreSettlementResponse, error) {
+	if err := h.requireAdmin(ctx); err != nil {
+		return nil, err
+	}
+	if h.settlement == nil {
+		return nil, status.Error(codes.Unimplemented, "settlement is not configured")
+	}
+	record, err := h.settlement.IgnoreByOperator(ctx, request.GetSettlementId(), request.GetActorId(), request.GetReason())
+	if err != nil {
+		return nil, status.Error(codes.FailedPrecondition, err.Error())
+	}
+	return &ledgerv1.IgnoreSettlementResponse{Settlement: settlementMessage(record)}, nil
+}
+
 func settlementMessage(record ledger.Settlement) *ledgerv1.Settlement {
 	return &ledgerv1.Settlement{SettlementId: record.ID, SourceService: record.SourceService, SourceTransactionId: record.SourceTxID, IdempotencyKey: record.IdempotencyKey, Status: string(record.Status), Network: record.Network, TransactionHash: record.TransactionHash, Attempts: uint32(record.Attempts), LastError: record.LastError}
 }
diff --git a/interface/grpc/settlement_test.go b/interface/grpc/settlement_test.go
new file mode 100644
index 0000000..5656598
--- /dev/null
+++ b/interface/grpc/settlement_test.go
@@ -0,0 +1,21 @@
+package grpcadapter
+
+import (
+	"context"
+	"testing"
+
+	ledgerv1 "gl/gen/ledger/v1"
+	"google.golang.org/grpc/codes"
+	"google.golang.org/grpc/metadata"
+	"google.golang.org/grpc/status"
+)
+
+func TestIgnoreSettlementRequiresAdminToken(t *testing.T) {
+	handler := NewHandler(nil, nil).WithSettlementAdminToken("secret")
+	for _, token := range []string{"", "wrong"} {
+		ctx := metadata.NewIncomingContext(context.Background(), metadata.Pairs("x-admin-token", token))
+		if _, err := handler.IgnoreSettlement(ctx, &ledgerv1.IgnoreSettlementRequest{}); status.Code(err) != codes.PermissionDenied {
+			t.Fatalf("unauthorized dismissal: %v", err)
+		}
+	}
+}