diff --git a/server/src/__tests__/execution-workspaces-service.test.ts b/server/src/__tests__/execution-workspaces-service.test.ts
index c031ad58..d4a50bdc 100644
--- a/server/src/__tests__/execution-workspaces-service.test.ts
+++ b/server/src/__tests__/execution-workspaces-service.test.ts
@@ -148,7 +148,7 @@ describeEmbeddedPostgres("executionWorkspaceService.getCloseReadiness", () => {
     await tempDb?.cleanup();
   });
 
-  it("blocks close for shared workspaces that still have open linked issues", async () => {
+  it("allows archiving shared workspace sessions with warnings even when issues are still open", async () => {
     const companyId = randomUUID();
     const projectId = randomUUID();
     const projectWorkspaceId = randomUUID();
@@ -209,14 +209,15 @@ describeEmbeddedPostgres("executionWorkspaceService.getCloseReadiness", () => {
 
     expect(readiness).toMatchObject({
       workspaceId: executionWorkspaceId,
-      state: "blocked",
+      state: "ready_with_warnings",
       isSharedWorkspace: true,
       isProjectPrimaryWorkspace: true,
-      isDestructiveCloseAllowed: false,
+      isDestructiveCloseAllowed: true,
     });
-    expect(readiness?.blockingReasons).toEqual(expect.arrayContaining([
-      "This workspace is still linked to an open issue.",
-      "Shared execution workspaces are project infrastructure and cannot be destructively closed.",
+    expect(readiness?.blockingReasons).toEqual([]);
+    expect(readiness?.warnings).toEqual(expect.arrayContaining([
+      "This workspace is still linked to an open issue. Archiving it will detach this shared workspace session from those issues, but keep the underlying project workspace available.",
+      "This shared workspace session points at project workspace infrastructure. Archiving it only removes the session record.",
     ]));
   });
 
diff --git a/server/src/routes/execution-workspaces.ts b/server/src/routes/execution-workspaces.ts
index d4291967..4fa20425 100644
--- a/server/src/routes/execution-workspaces.ts
+++ b/server/src/routes/execution-workspaces.ts
@@ -1,7 +1,7 @@
 import { and, eq } from "drizzle-orm";
 import { Router } from "express";
 import type { Db } from "@paperclipai/db";
-import { projects, projectWorkspaces } from "@paperclipai/db";
+import { issues, projects, projectWorkspaces } from "@paperclipai/db";
 import { updateExecutionWorkspaceSchema } from "@paperclipai/shared";
 import { validate } from "../middleware/validate.js";
 import { executionWorkspaceService, logActivity, workspaceOperationService } from "../services/index.js";
@@ -303,6 +303,21 @@ export function executionWorkspaceRoutes(db: Db) {
       }
       workspace = archivedWorkspace;
 
+      if (existing.mode === "shared_workspace") {
+        await db
+          .update(issues)
+          .set({
+            executionWorkspaceId: null,
+            updatedAt: new Date(),
+          })
+          .where(
+            and(
+              eq(issues.companyId, existing.companyId),
+              eq(issues.executionWorkspaceId, existing.id),
+            ),
+          );
+      }
+
       try {
         await stopRuntimeServicesForExecutionWorkspace({
           db,
diff --git a/server/src/services/execution-workspaces.ts b/server/src/services/execution-workspaces.ts
index 8b0cebde..a1d3b41d 100644
--- a/server/src/services/execution-workspaces.ts
+++ b/server/src/services/execution-workspaces.ts
@@ -456,15 +456,19 @@ export function executionWorkspaceService(db: Db) {
 
       const blockingIssues = linkedIssueSummaries.filter((issue) => !issue.isTerminal);
       if (blockingIssues.length > 0) {
-        blockingReasons.push(
+        const linkedIssueMessage =
           blockingIssues.length === 1
             ? "This workspace is still linked to an open issue."
-            : `This workspace is still linked to ${blockingIssues.length} open issues.`,
-        );
+            : `This workspace is still linked to ${blockingIssues.length} open issues.`;
+        if (isSharedWorkspace) {
+          warnings.push(`${linkedIssueMessage} Archiving it will detach this shared workspace session from those issues, but keep the underlying project workspace available.`);
+        } else {
+          blockingReasons.push(linkedIssueMessage);
+        }
       }
 
       if (isSharedWorkspace) {
-        blockingReasons.push("Shared execution workspaces are project infrastructure and cannot be destructively closed.");
+        warnings.push("This shared workspace session points at project workspace infrastructure. Archiving it only removes the session record.");
       }
 
       if (runtimeServices.some((service) => service.status !== "stopped")) {
diff --git a/ui/src/components/ExecutionWorkspaceCloseDialog.tsx b/ui/src/components/ExecutionWorkspaceCloseDialog.tsx
index 4ad9a5bb..3b6aef8a 100644
--- a/ui/src/components/ExecutionWorkspaceCloseDialog.tsx
+++ b/ui/src/components/ExecutionWorkspaceCloseDialog.tsx
@@ -118,7 +118,7 @@ export function ExecutionWorkspaceCloseDialog({
               </div>
               <div className="mt-1 text-xs opacity-80">
                 {readiness.isSharedWorkspace
-                  ? "This is the shared project workspace session, so destructive close is blocked."
+                  ? "This is a shared workspace session. Archiving it removes this session record but keeps the underlying project workspace."
                   : readiness.git?.workspacePath && readiness.git.repoRoot && readiness.git.workspacePath !== readiness.git.repoRoot
                     ? "This execution workspace has its own checkout path and can be archived independently."
                     : readiness.isProjectPrimaryWorkspace