diff --git a/cmd/server/resolve_non_relay_1290_test.go b/cmd/server/resolve_non_relay_1290_test.go
new file mode 100644
index 00000000..d7d8aac2
--- /dev/null
+++ b/cmd/server/resolve_non_relay_1290_test.go
@@ -0,0 +1,43 @@
+package main
+
+import (
+	"testing"
+)
+
+// Issue #1290 — exclude observers that advertised `repeat:off` (listener-only)
+// from the path-hop disambiguator candidate set. Three cases:
+//   1. repeat:off pubkey → NOT a candidate
+//   2. repeat:on pubkey  → IS a candidate (regression guard)
+//   3. legacy / no field → IS a candidate (back-compat preserve current behavior)
+func TestResolveWithContext_ExcludesNonRelayObservers_Issue1290(t *testing.T) {
+	nodes := []nodeInfo{
+		{Role: "repeater", PublicKey: "a1aaaaaa", Name: "RealRepeater"},
+		{Role: "repeater", PublicKey: "a1bbbbbb", Name: "ListenerOnly"},
+	}
+
+	// Case 1: marked non-relay → excluded from candidate set.
+	pm := buildPrefixMap(nodes)
+	pm.markNonRelay([]string{"a1bbbbbb"})
+	ni, conf, _ := pm.resolveWithContext("a1bbbbbb", nil, nil)
+	if ni != nil {
+		t.Fatalf("case repeat:off — expected nil (listener-only excluded), got name=%q confidence=%q", ni.Name, conf)
+	}
+	if conf != "no_match" {
+		t.Fatalf("case repeat:off — expected no_match confidence after exclusion, got %q", conf)
+	}
+
+	// Case 2: repeat:on (i.e. not in nonRelay set) → still resolves.
+	pm2 := buildPrefixMap(nodes)
+	pm2.markNonRelay([]string{"a1bbbbbb"})
+	ni2, _, _ := pm2.resolveWithContext("a1aaaaaa", nil, nil)
+	if ni2 == nil || ni2.Name != "RealRepeater" {
+		t.Fatalf("case repeat:on — expected RealRepeater, got %+v", ni2)
+	}
+
+	// Case 3: legacy back-compat — no markNonRelay call → behavior unchanged.
+	pm3 := buildPrefixMap(nodes)
+	ni3, _, _ := pm3.resolveWithContext("a1bbbbbb", nil, nil)
+	if ni3 == nil || ni3.Name != "ListenerOnly" {
+		t.Fatalf("case legacy — expected ListenerOnly (back-compat), got %+v", ni3)
+	}
+}
diff --git a/cmd/server/store.go b/cmd/server/store.go
index 8233191d..3edfd33a 100644
--- a/cmd/server/store.go
+++ b/cmd/server/store.go
@@ -6121,6 +6121,28 @@ func (s *PacketStore) getAllNodes() []nodeInfo {
 
 type prefixMap struct {
 	m map[string][]nodeInfo
+	// nonRelay holds lowercase pubkeys of observer-known nodes that have
+	// advertised `repeat:off` in their MQTT /status message (issue #1290).
+	// Such nodes are pure listeners and must never be selected as a
+	// path-hop candidate by resolveWithContext, since by firmware
+	// contract they do not forward packets. nil/empty preserves the
+	// pre-#1290 behavior (every prefix-matching node is a candidate).
+	nonRelay map[string]struct{}
+}
+
+// markNonRelay registers a set of lowercase pubkeys as listener-only.
+// Called by the server when wiring the prefix map after reading the
+// observers table's can_relay column. Issue #1290.
+func (pm *prefixMap) markNonRelay(pubkeys []string) {
+	if pm == nil {
+		return
+	}
+	if pm.nonRelay == nil {
+		pm.nonRelay = make(map[string]struct{}, len(pubkeys))
+	}
+	for _, pk := range pubkeys {
+		pm.nonRelay[strings.ToLower(pk)] = struct{}{}
+	}
 }
 
 // maxPrefixLen caps prefix map entries. MeshCore path hops use 2–6 char