diff --git a/agent/credential_pool.py b/agent/credential_pool.py
index 8917b49d8d..237369377b 100644
--- a/agent/credential_pool.py
+++ b/agent/credential_pool.py
@@ -2300,6 +2300,11 @@ def _upsert_entry(entries: List[PooledCredential], provider: str, source: str, p
     field_updates = {}
     extra_updates = {}
     _field_names = {f.name for f in fields(existing)}
+    token_changed = (
+        "access_token" in payload
+        and payload["access_token"] is not None
+        and payload["access_token"] != existing.access_token
+    )
     for key, value in payload.items():
         if key in {"id", "priority"} or value is None:
             continue
@@ -2311,6 +2316,15 @@ def _upsert_entry(entries: List[PooledCredential], provider: str, source: str, p
         elif key in _EXTRA_KEYS:
             if existing.extra.get(key) != value:
                 extra_updates[key] = value
+    # When the credential token itself changes (key rotation), clear any
+    # exhaustion/error state — the old status is stale for the new key.
+    if token_changed and existing.last_status is not None:
+        field_updates["last_status"] = None
+        field_updates["last_status_at"] = None
+        field_updates["last_error_code"] = None
+        field_updates["last_error_reason"] = None
+        field_updates["last_error_message"] = None
+        field_updates["last_error_reset_at"] = None
     if field_updates or extra_updates:
         if extra_updates:
             field_updates["extra"] = {**existing.extra, **extra_updates}
diff --git a/scripts/release.py b/scripts/release.py
index eb4e779c10..d35e9e0a2f 100755
--- a/scripts/release.py
+++ b/scripts/release.py
@@ -1577,6 +1577,7 @@ LEGACY_AUTHOR_MAP = {
     "17683456+wanazhar@users.noreply.github.com": "wanazhar",
     "26782336+cixuuz@users.noreply.github.com": "cixuuz",
     "aleksandr.pasevin@openzeppelin.com": "pasevin",
+    "pasevin@gmail.com": "pasevin",
     "ubuntu@localhost.localdomain": "holynn-q",
     "holynn@placeholder.local": "holynn-q",
     "agent@hermes.local": "jacdevos",
diff --git a/tests/agent/test_credential_pool_key_rotation.py b/tests/agent/test_credential_pool_key_rotation.py
new file mode 100644
index 0000000000..c23554a467
--- /dev/null
+++ b/tests/agent/test_credential_pool_key_rotation.py
@@ -0,0 +1,106 @@
+"""Tests for credential pool upsert — key rotation clears exhaustion state."""
+
+from __future__ import annotations
+
+import json
+
+
+def _write_auth_store(tmp_path, payload: dict) -> None:
+    hermes_home = tmp_path / "hermes"
+    hermes_home.mkdir(parents=True, exist_ok=True)
+    (hermes_home / "auth.json").write_text(json.dumps(payload, indent=2))
+
+
+def test_key_rotation_clears_exhausted_status(tmp_path, monkeypatch):
+    """Replacing an exhausted API key via _upsert_entry resets last_status.
+
+    Regression: `hermes setup` saves a new OPENROUTER_API_KEY to .env, which
+    triggers _seed_from_env → _upsert_entry.  If the existing pool entry was
+    marked exhausted (e.g. from a rate-limit on the old key), the stale status
+    was preserved on the new key — making the pool appear unusable even though
+    a fresh valid key was present.
+    """
+    monkeypatch.setenv("HERMES_HOME", str(tmp_path / "hermes"))
+    _write_auth_store(
+        tmp_path,
+        {
+            "version": 1,
+            "credential_pool": {
+                "openrouter": [
+                    {
+                        "id": "cred-1",
+                        "label": "OPENROUTER_API_KEY",
+                        "auth_type": "api_key",
+                        "priority": 0,
+                        "source": "env:OPENROUTER_API_KEY",
+                        "access_token": "old-key",
+                        "last_status": "exhausted",
+                        "last_status_at": 1000.0,
+                        "last_error_code": 429,
+                        "last_error_reason": "rate_limit",
+                        "last_error_message": "Too many requests",
+                        "last_error_reset_at": 2000.0,
+                    }
+                ]
+            },
+        },
+    )
+
+    # Simulate the user rotating their key (new value in env)
+    monkeypatch.setenv("OPENROUTER_API_KEY", "new-rotated-key")
+
+    from agent.credential_pool import load_pool
+
+    pool = load_pool("openrouter")
+    entry = pool.select()
+
+    assert entry is not None, "Pool should have a usable entry after key rotation"
+    assert entry.access_token == "new-rotated-key"
+    assert entry.last_status is None, "last_status should be cleared after key rotation"
+    assert entry.last_status_at is None
+    assert entry.last_error_code is None
+    assert entry.last_error_reason is None
+    assert entry.last_error_message is None
+    assert entry.last_error_reset_at is None
+
+
+def test_same_key_preserves_exhausted_status(tmp_path, monkeypatch):
+    """If the key has NOT changed, _upsert_entry does not clear exhaustion state."""
+    monkeypatch.setenv("HERMES_HOME", str(tmp_path / "hermes"))
+
+    from agent.credential_pool import PooledCredential, _upsert_entry
+
+    existing = PooledCredential.from_dict(
+        "openrouter",
+        {
+            "id": "cred-1",
+            "label": "OPENROUTER_API_KEY",
+            "auth_type": "api_key",
+            "priority": 0,
+            "source": "env:OPENROUTER_API_KEY",
+            "access_token": "same-key",
+            "last_status": "exhausted",
+            "last_status_at": 1000.0,
+            "last_error_code": 429,
+            "last_error_reason": "rate_limit",
+            "last_error_message": "Too many requests",
+            "last_error_reset_at": 2000.0,
+        },
+    )
+    entries = [existing]
+
+    # Upsert with the same token — should NOT clear exhaustion
+    _upsert_entry(
+        entries,
+        "openrouter",
+        "env:OPENROUTER_API_KEY",
+        {
+            "source": "env:OPENROUTER_API_KEY",
+            "auth_type": "api_key",
+            "access_token": "same-key",
+        },
+    )
+
+    assert entries[0].last_status == "exhausted", (
+        "last_status should not be cleared when the key is unchanged"
+    )