diff --git a/hooks/claude/rtk-rewrite.sh b/hooks/claude/rtk-rewrite.sh
index 08edac31f..9471b0302 100644
--- a/hooks/claude/rtk-rewrite.sh
+++ b/hooks/claude/rtk-rewrite.sh
@@ -1,5 +1,5 @@
 #!/usr/bin/env bash
-# rtk-hook-version: 3
+# rtk-hook-version: 4
 # RTK Claude Code hook — rewrites commands to use rtk for token savings.
 # Requires: rtk >= 0.23.0, jq
 #
@@ -13,14 +13,22 @@
 #   2           Deny rule matched → pass through (Claude Code native deny handles it)
 #   3 + stdout  Ask rule matched → rewrite but let Claude Code prompt the user
 
+# Emit an explicit allow decision so Claude Code honours --dangerously-skip-permissions
+# even when the hook has no rewrite to apply.  Using printf avoids a jq dependency
+# for the early-exit paths (missing tools, old version).
+_rtk_allow_passthrough() {
+  printf '{"hookSpecificOutput":{"hookEventName":"PreToolUse","permissionDecision":"allow"}}\n'
+  exit 0
+}
+
 if ! command -v jq &>/dev/null; then
   echo "[rtk] WARNING: jq is not installed. Hook cannot rewrite commands. Install jq: https://jqlang.github.io/jq/download/" >&2
-  exit 0
+  _rtk_allow_passthrough
 fi
 
 if ! command -v rtk &>/dev/null; then
   echo "[rtk] WARNING: rtk is not installed or not in PATH. Hook cannot rewrite commands. Install: https://github.com/rtk-ai/rtk#installation" >&2
-  exit 0
+  _rtk_allow_passthrough
 fi
 
 # Version guard: rtk rewrite was added in 0.23.0.
@@ -37,7 +45,7 @@ if [ ! -f "$CACHE_FILE" ]; then
     # Require >= 0.23.0
     if [ "$MAJOR" -eq 0 ] && [ "$MINOR" -lt 23 ]; then
       echo "[rtk] WARNING: rtk $RTK_VERSION is too old (need >= 0.23.0). Upgrade: cargo install rtk" >&2
-      exit 0
+      _rtk_allow_passthrough
     fi
   fi
   mkdir -p "$CACHE_DIR" 2>/dev/null
@@ -59,11 +67,15 @@ case $EXIT_CODE in
   0)
     # Rewrite found, no permission rules matched — safe to auto-allow.
     # If the output is identical, the command was already using RTK.
-    [ "$CMD" = "$REWRITTEN" ] && exit 0
+    if [ "$CMD" = "$REWRITTEN" ]; then
+      _rtk_allow_passthrough
+    fi
     ;;
   1)
-    # No RTK equivalent — pass through unchanged.
-    exit 0
+    # No RTK equivalent — pass through with explicit allow so that
+    # --dangerously-skip-permissions is respected (Claude Code treats a hook
+    # that exits 0 with no output differently from no hook being installed).
+    _rtk_allow_passthrough
     ;;
   2)
     # Deny rule matched — let Claude Code's native deny rule handle it.
@@ -74,7 +86,7 @@ case $EXIT_CODE in
     # Claude Code prompts the user for confirmation.
     ;;
   *)
-    exit 0
+    _rtk_allow_passthrough
     ;;
 esac
 
diff --git a/hooks/claude/test-rtk-rewrite.sh b/hooks/claude/test-rtk-rewrite.sh
index 702fe9299..7a0c8aa2b 100644
--- a/hooks/claude/test-rtk-rewrite.sh
+++ b/hooks/claude/test-rtk-rewrite.sh
@@ -27,16 +27,19 @@ test_rewrite() {
   output=$(echo "$input_json" | bash "$HOOK" 2>/dev/null) || true
 
   if [ -z "$expected_cmd" ]; then
-    # Expect no rewrite (hook exits 0 with no output)
-    if [ -z "$output" ]; then
-      printf "  ${GREEN}PASS${RESET} %s ${DIM}→ (no rewrite)${RESET}\n" "$description"
+    # Expect passthrough: permissionDecision=allow, no updatedInput.command.
+    # The hook must emit an explicit allow so Claude Code respects
+    # --dangerously-skip-permissions even when no rewrite is applied.
+    local perm_decision updated_cmd
+    perm_decision=$(echo "$output" | jq -r '.hookSpecificOutput.permissionDecision // empty' 2>/dev/null)
+    updated_cmd=$(echo "$output" | jq -r '.hookSpecificOutput.updatedInput.command // empty' 2>/dev/null)
+    if [ "$perm_decision" = "allow" ] && [ -z "$updated_cmd" ]; then
+      printf "  ${GREEN}PASS${RESET} %s ${DIM}→ (allow, no rewrite)${RESET}\n" "$description"
       PASS=$((PASS + 1))
     else
-      local actual
-      actual=$(echo "$output" | jq -r '.hookSpecificOutput.updatedInput.command // empty')
       printf "  ${RED}FAIL${RESET} %s\n" "$description"
-      printf "       expected: (no rewrite)\n"
-      printf "       actual:   %s\n" "$actual"
+      printf "       expected: permissionDecision=allow, no rewrite\n"
+      printf "       got:      permissionDecision=%s, updated_cmd=%s\n" "$perm_decision" "$updated_cmd"
       FAIL=$((FAIL + 1))
     fi
   else
@@ -327,6 +330,41 @@ test_rewrite "node (no pattern)" \
 
 echo ""
 
+# ---- SECTION 5b: --dangerously-skip-permissions bypass (issue #1033) ----
+# When RTK has no rewrite to apply, the hook must output permissionDecision=allow
+# so that --dangerously-skip-permissions is respected.  A bare exit 0 with no
+# output causes Claude Code to fall back to its default prompt behaviour.
+echo "--- Passthrough must emit allow (issue #1033) ---"
+
+test_passthrough_allows() {
+  local description="$1"
+  local input_cmd="$2"
+  TOTAL=$((TOTAL + 1))
+
+  local input_json output perm_decision
+  input_json=$(jq -n --arg cmd "$input_cmd" '{"tool_name":"Bash","tool_input":{"command":$cmd}}')
+  output=$(echo "$input_json" | bash "$HOOK" 2>/dev/null) || true
+  perm_decision=$(echo "$output" | jq -r '.hookSpecificOutput.permissionDecision // empty' 2>/dev/null)
+
+  if [ "$perm_decision" = "allow" ]; then
+    printf "  ${GREEN}PASS${RESET} %s ${DIM}→ permissionDecision=allow${RESET}\n" "$description"
+    PASS=$((PASS + 1))
+  else
+    printf "  ${RED}FAIL${RESET} %s\n" "$description"
+    printf "       expected permissionDecision=allow, got: '%s'\n" "$perm_decision"
+    printf "       full output: %s\n" "$output"
+    FAIL=$((FAIL + 1))
+  fi
+}
+
+test_passthrough_allows "which rtk (no rewrite)" "which rtk"
+test_passthrough_allows "rtk --version (already rtk, no change)" "rtk --version"
+test_passthrough_allows "claude mcp list (no rewrite)" "claude mcp list"
+test_passthrough_allows "echo hello (no rewrite)" "echo hello"
+test_passthrough_allows "cd /tmp (no rewrite)" "cd /tmp"
+
+echo ""
+
 # ---- SECTION 6: Audit logging ----
 echo "--- Audit logging (RTK_HOOK_AUDIT=1) ---"