diff --git a/README.md b/README.md
index 9118f5c..9f29e83 100644
--- a/README.md
+++ b/README.md
@@ -244,7 +244,7 @@ ignore = ["*.tmp", "node_modules/"]
 
 *Focus: Turning the tool from a blind script into a helpful partner that negotiates with you.*
 
-- [ ] **Smart Restore:** Replace hard failures on "dirty" files with a negotiation menu (Overwrite / View Diff / Cancel).
+- [x] **Smart Restore:** Replace hard failures on "dirty" files with a negotiation menu (Overwrite / View Diff / Cancel).
 - [ ] **Pre-Flight Checklists:** Display a summary table of incoming changes (machines, timestamps, file counts) before running destructive commands like `finalize`.
 - [x] **Active Doctor:** Upgrade `git pulsar doctor` to not just diagnose issues (like stopped daemons), but offer to auto-fix them interactively.
 
diff --git a/src/README.md b/src/README.md
index eb6fb44..28d44de 100644
--- a/src/README.md
+++ b/src/README.md
@@ -12,7 +12,7 @@ The `src/` directory contains the package source code. The architecture strictly
   - **Safety:** Implements `GIT_INDEX_FILE` isolation to ensure it never locks or corrupts the user's active git index.
 - **`git_pulsar/ops.py`**: High-level Business Logic.
   - **Role:** The "Controller." It orchestrates complex multi-step operations like `finalize` (Octopus Merges), `restore`, and drift detection.
-  - **Logic:** Calculates the "Zipper Graph" topology to merge shadow commits back into the main branch, manages atomic file I/O for cross-process state tracking, and evaluates pipeline blockers (e.g., oversized files).
+  - **Logic:** Calculates the "Zipper Graph" topology to merge shadow commits back into the main branch, manages atomic file I/O for cross-process state tracking, evaluates pipeline blockers (e.g., oversized files), and handles interactive state machines for file restorations.
 - **`git_pulsar/config.py`**: Configuration Engine.
   - **Role:** The "Source of Truth."
   - **Logic:** Implements a cascading hierarchy (Defaults → Global → Local) to merge settings from `~/.config/git-pulsar/config.toml` and project-level `pulsar.toml` or `pyproject.toml`.
@@ -21,7 +21,7 @@ The `src/` directory contains the package source code. The architecture strictly
 
 - **`git_pulsar/git_wrapper.py`**: The Git Interface.
   - **Role:** A strict wrapper around `subprocess`.
-  - **Philosophy:** **No Porcelain.** This module primarily uses git *plumbing* commands (`write-tree`, `commit-tree`, `update-ref`) rather than user-facing commands (`commit`, `add`) to ensure deterministic behavior.
+  - **Philosophy:** **No Porcelain.** This module primarily uses git *plumbing* commands (`write-tree`, `commit-tree`, `update-ref`) rather than user-facing commands (`commit`, `add`) to ensure deterministic behavior. It also handles dynamic command construction, such as safe boundary markers (`--`) for file-level diff targeting.
 - **`git_pulsar/system.py`**: OS Abstraction.
   - **Role:** Identity & Environment.
   - **Logic:** Handles the chaos of cross-platform identity (mapping `IOPlatformUUID` on macOS vs `/etc/machine-id` on Linux) to ensure stable "Roaming Profiles."
@@ -47,4 +47,4 @@ The `src/` directory contains the package source code. The architecture strictly
 3. **Identity Stability:** The `system` module guarantees that a Machine ID persists across reboots, preventing "Split Brain" backup histories.
 4. **Configuration Precedence:** Local project configuration MUST always override global user settings to ensure repo-specific constraints (e.g., large file limits) are respected.
 5. **State Over Events (Zero-Latency):** The diagnostic engine (`cli.py`) MUST prioritize current repository state and local caches (e.g., `.git/pulsar_drift_state`) over historical log events or live network calls, ensuring the CLI never blocks the user's terminal while evaluating system health.
-6. **Interactive Safety:** The diagnostic engine's interactive resolution queue MUST explicitly prompt the user for confirmation before executing any state-altering auto-fixes (e.g., deleting locks or modifying the registry).
+6. **Interactive Safety:** Interactive control loops MUST explicitly prompt the user for confirmation before executing any destructive or state-altering operations (e.g., overwriting dirty files during restore, deleting locks, or modifying the registry).
diff --git a/src/git_pulsar/git_wrapper.py b/src/git_pulsar/git_wrapper.py
index 24fd170..5224762 100644
--- a/src/git_pulsar/git_wrapper.py
+++ b/src/git_pulsar/git_wrapper.py
@@ -266,10 +266,14 @@ def get_untracked_files(self) -> list[str]:
         output = self._run(["ls-files", "--others", "--exclude-standard"])
         return output.splitlines() if output else []
 
-    def run_diff(self, target: str) -> None:
+    def run_diff(self, target: str, file: str | None = None) -> None:
         """Executes a git diff operation, outputting directly to stdout.
 
         Args:
-            target (str): The target revision or file to diff against.
+            target (str): The target revision or branch to diff against.
+            file (str | None, optional): A specific file path to diff. Defaults to None.
         """
-        self._run(["diff", target], capture=False)
+        cmd = ["diff", target]
+        if file:
+            cmd.extend(["--", file])
+        self._run(cmd, capture=False)
diff --git a/src/git_pulsar/ops.py b/src/git_pulsar/ops.py
index d5927e0..618e8f3 100644
--- a/src/git_pulsar/ops.py
+++ b/src/git_pulsar/ops.py
@@ -11,6 +11,7 @@
 
 from rich.console import Console
 from rich.panel import Panel
+from rich.prompt import Prompt
 
 from . import system
 from .config import Config
@@ -302,10 +303,24 @@ def restore_file(path_str: str, force: bool = False) -> None:
     # 1. Safety Check: Verify if the file is dirty.
     if not force and path.exists() and repo.status_porcelain(path_str):
         console.print(
-            f"[bold red]ABORTED:[/bold red] '{path_str}' has uncommitted changes."
+            f"[bold yellow]WARNING:[/bold yellow] '{path_str}' has uncommitted changes."
         )
-        console.print("   Use --force to overwrite them.")
-        sys.exit(1)
+
+        while True:
+            choice = Prompt.ask(
+                "   [O]verwrite / [V]iew Diff / [C]ancel",
+                choices=["o", "v", "c"],
+                default="c",
+            )
+
+            if choice == "v":
+                repo.run_diff(backup_ref, file=path_str)
+                continue
+            elif choice == "c":
+                console.print("[bold red]ABORTED.[/bold red]")
+                sys.exit(0)
+            elif choice == "o":
+                break
 
     # 2. Restore file from backup ref.
     console.print(
diff --git a/tests/README.md b/tests/README.md
index 956af18..aaa1fb2 100644
--- a/tests/README.md
+++ b/tests/README.md
@@ -35,6 +35,7 @@ Verifies the "State Reconciliation" engine and primitive operations.
 - **State Management:** Verifies atomic file I/O operations (`set_drift_state`) to ensure cross-process thread safety between the background daemon and foreground CLI.
 - **Drift Detection:** Tests the core logic for identifying when remote sessions leapfrog local ones, simulating various network failures and detached HEAD states.
 - **Pipeline Blockers:** Validates decoupled checks for oversized files (`has_large_files`), ensuring they safely abort operations and trigger system notifications without polluting the daemon's event loop.
+- **Interactive State Machines:** Validates the `Prompt.ask` control loop during dirty file restorations, ensuring branching paths (Overwrite, View Diff, Cancel) execute the correct `GitRepo` methods and exit gracefully.
 
 ### 5. Configuration Hierarchy (`test_config.py`)
 
@@ -53,6 +54,13 @@ Validates the state-aware diagnostic engine and user-facing CLI commands.
 - **Environment Simulation & Guidance:** Uses `tmp_path` and `mocker` to synthesize restrictive `.git/hooks`, offline networks, and Linux `systemd` configurations (`loginctl`) without executing side effects on the host, verifying exact stdout formatting for manual interventions.
 - **UI Determinism:** Ensures commands like `status` and `config` parse timestamps and route to standard system editors (`$EDITOR`, `nano`) correctly.
 
+### 7. Git Abstraction Layer (`test_git_wrapper.py`)
+
+Ensures the Python-to-Git subprocess boundary remains secure and predictable.
+
+- **Command Construction:** Verifies that dynamic arguments—such as file-level diff targeting—correctly append necessary boundary markers (`--`) to prevent Git from misinterpreting file paths as revision hashes.
+- **Error Handling:** Ensures low-level subprocess failures are caught and logged rather than causing silent upstream crashes.
+
 ---
 
 ## Running Tests
diff --git a/tests/test_git_wrapper.py b/tests/test_git_wrapper.py
index 2b33937..37a5dc0 100644
--- a/tests/test_git_wrapper.py
+++ b/tests/test_git_wrapper.py
@@ -23,3 +23,20 @@ def test_list_refs_logs_error_on_failure(
 
     # Assert it logged the warning
     assert "Git error listing refs" in caplog.text
+
+
+def test_run_diff_with_file_targeting(mocker: MagicMock, tmp_path: Path) -> None:
+    """Verifies that run_diff correctly appends the file boundary double-dash."""
+    (tmp_path / ".git").mkdir()
+    repo = GitRepo(tmp_path)
+    mock_run = mocker.patch.object(repo, "_run")
+
+    # Diff against target without file
+    repo.run_diff("HEAD")
+    mock_run.assert_called_with(["diff", "HEAD"], capture=False)
+
+    # Diff against target with specific file
+    repo.run_diff("refs/backup/main", file="src/main.py")
+    mock_run.assert_called_with(
+        ["diff", "refs/backup/main", "--", "src/main.py"], capture=False
+    )
diff --git a/tests/test_ops.py b/tests/test_ops.py
index aff68b0..6a5b7eb 100644
--- a/tests/test_ops.py
+++ b/tests/test_ops.py
@@ -97,8 +97,8 @@ def test_restore_clean(mocker: MagicMock) -> None:
     mock_repo.checkout.assert_called_with(expected_ref, file="script.py")
 
 
-def test_restore_dirty_fails(tmp_path: Path, mocker: MagicMock) -> None:
-    """Verifies that `restore_file` aborts if the target file has uncommitted changes.
+def test_restore_dirty_cancels(tmp_path: Path, mocker: MagicMock) -> None:
+    """Verifies that selecting [C]ancel exits cleanly with code 0.
 
     Args:
         tmp_path (Path): Pytest fixture for a temporary directory.
@@ -110,13 +110,68 @@ def test_restore_dirty_fails(tmp_path: Path, mocker: MagicMock) -> None:
     mock_cls = mocker.patch("git_pulsar.ops.GitRepo")
     mock_repo = mock_cls.return_value
     mock_repo.status_porcelain.return_value = ["M script.py"]
-    mock_repo.current_branch.return_value = "main"
+    mocker.patch("git_pulsar.ops.get_backup_ref", return_value="refs/backup")
+    mocker.patch("git_pulsar.ops.console")
+
+    # Mock the prompt to return 'c' for cancel
+    mocker.patch("git_pulsar.ops.Prompt.ask", return_value="c")
+
+    with pytest.raises(SystemExit) as excinfo:
+        ops.restore_file("script.py")
+
+    assert excinfo.value.code == 0
+    mock_repo.checkout.assert_not_called()
+
+
+def test_restore_dirty_overwrites(tmp_path: Path, mocker: MagicMock) -> None:
+    """Verifies that selecting [O]verwrite breaks the loop and restores the file.
+
+    Args:
+        tmp_path (Path): Pytest fixture for a temporary directory.
+        mocker (MagicMock): Pytest fixture for mocking.
+    """
+    os.chdir(tmp_path)
+    (tmp_path / "script.py").touch()
+
+    mock_cls = mocker.patch("git_pulsar.ops.GitRepo")
+    mock_repo = mock_cls.return_value
+    mock_repo.status_porcelain.return_value = ["M script.py"]
+    mocker.patch("git_pulsar.ops.get_backup_ref", return_value="refs/backup")
+    mocker.patch("git_pulsar.ops.console")
+
+    # Mock the prompt to return 'o' for overwrite
+    mocker.patch("git_pulsar.ops.Prompt.ask", return_value="o")
+
+    ops.restore_file("script.py")
+
+    mock_repo.checkout.assert_called_once_with("refs/backup", file="script.py")
 
+
+def test_restore_dirty_views_diff(tmp_path: Path, mocker: MagicMock) -> None:
+    """Verifies that selecting [V]iew Diff executes run_diff and re-prompts.
+
+    Args:
+        tmp_path (Path): Pytest fixture for a temporary directory.
+        mocker (MagicMock): Pytest fixture for mocking.
+    """
+    os.chdir(tmp_path)
+    (tmp_path / "script.py").touch()
+
+    mock_cls = mocker.patch("git_pulsar.ops.GitRepo")
+    mock_repo = mock_cls.return_value
+    mock_repo.status_porcelain.return_value = ["M script.py"]
+    mocker.patch("git_pulsar.ops.get_backup_ref", return_value="refs/backup")
     mocker.patch("git_pulsar.ops.console")
 
+    # Mock the prompt to return 'v' (view), then 'c' (cancel) on the second pass
+    mocker.patch("git_pulsar.ops.Prompt.ask", side_effect=["v", "c"])
+
     with pytest.raises(SystemExit):
         ops.restore_file("script.py")
 
+    mock_repo.run_diff.assert_called_once_with("refs/backup", file="script.py")
+    mock_repo.checkout.assert_not_called()
+
 
 def test_sync_session_success(mocker: MagicMock) -> None:
     """