diff --git a/.github/workflows/release-node.yml b/.github/workflows/release-node.yml
index 1f828408..f02df723 100644
--- a/.github/workflows/release-node.yml
+++ b/.github/workflows/release-node.yml
@@ -378,6 +378,62 @@ jobs:
           # shellcheck disable=SC2086
           pnpm publish --access public --no-git-checks $DIST_TAG
 
+      # AAASM-3840: keep the npm `latest` dist-tag current.
+      #
+      # The publish steps above route each build to a *channel* dist-tag derived
+      # from its SemVer pre-release identifier (alpha/beta/rc), and only a bare
+      # GA `X.Y.Z` publish moves `latest` implicitly. Nothing ever advances
+      # `latest` for a pre-release, so on a pre-1.0 project that has only ever
+      # shipped pre-releases, `latest` stays frozen at whatever the very first
+      # publish happened to be — making a bare `npm install @agent-assembly/sdk`
+      # resolve to an ancient alpha (the bug this fixes).
+      #
+      # POLICY (pre-1.0 / pre-GA): `latest` always points at the *highest*
+      # SemVer version currently on npm, across every channel. SemVer precedence
+      # (alpha < beta < rc < GA) makes this self-correcting and monotonic:
+      #   - a GA publish wins over any pre-release of the same base, so `latest`
+      #     naturally tracks the newest GA once one exists;
+      #   - while only pre-releases exist, `latest` tracks the newest pre-release
+      #     (e.g. rc.2 over beta.5 over alpha.9.1) instead of the oldest;
+      #   - it never regresses `latest` to an older build, even if an out-of-band
+      #     hotfix to an older channel is published after a newer one.
+      # Runs in BOTH publish modes (gated only on dry_run, like the main publish
+      # step) so every real publish re-asserts the invariant.
+      - name: Update `latest` dist-tag to newest published version
+        if: steps.tag.outputs.dry_run != 'true'
+        env:
+          NODE_AUTH_TOKEN: ${{ secrets.NPM_TOKEN }}
+        run: |
+          set -euo pipefail
+          PKG="@agent-assembly/sdk"
+          # All versions on npm (the just-published one included). `npm view
+          # versions --json` returns an array, or a bare string if exactly one
+          # version exists — normalize both to newline-delimited output.
+          mapfile -t VERSIONS < <(npm view "$PKG" versions --json | node -e '
+            const raw = require("fs").readFileSync(0, "utf8").trim();
+            const data = JSON.parse(raw);
+            for (const v of Array.isArray(data) ? data : [data]) console.log(v);
+          ')
+          if [[ ${#VERSIONS[@]} -eq 0 ]]; then
+            echo "::error::no published versions found for $PKG"
+            exit 1
+          fi
+          # `semver` sorts ascending and includes pre-releases when passed
+          # explicitly, so the last line is the highest by SemVer precedence.
+          NEWEST=$(pnpm dlx semver "${VERSIONS[@]}" | tail -n1)
+          CURRENT=$(npm view "$PKG" dist-tags.latest 2>/dev/null || echo "")
+          echo "newest published=$NEWEST  current latest=$CURRENT"
+          if [[ -z "$NEWEST" ]]; then
+            echo "::error::could not determine newest version for $PKG"
+            exit 1
+          fi
+          if [[ "$NEWEST" == "$CURRENT" ]]; then
+            echo "latest already points at $NEWEST — nothing to do"
+          else
+            npm dist-tag add "${PKG}@${NEWEST}" latest
+            echo "moved latest: ${CURRENT:-<unset>} -> $NEWEST"
+          fi
+
       # AAASM-2955: cut a git tag + GitHub Release at the published npm
       # version so the README "GitHub release" badge tracks the current
       # release. Runs only on the real-publish path (dry-run skips it, same
diff --git a/docs/release/npm-dist-tags.md b/docs/release/npm-dist-tags.md
new file mode 100644
index 00000000..3e65ad8f
--- /dev/null
+++ b/docs/release/npm-dist-tags.md
@@ -0,0 +1,56 @@
+# npm dist-tag policy — `@agent-assembly/sdk`
+
+This package publishes to npm via [`.github/workflows/release-node.yml`](../../.github/workflows/release-node.yml).
+Each release is routed to a **channel** dist-tag derived from its SemVer
+pre-release identifier, and the floating `latest` tag is kept current
+automatically.
+
+## Channel dist-tags
+
+The publish steps derive the channel tag from the version's pre-release
+identifier:
+
+| Version example       | dist-tag           |
+| --------------------- | ------------------ |
+| `0.0.1-alpha.9.1`     | `alpha`            |
+| `0.0.1-beta.5`        | `beta`             |
+| `0.0.1-rc.2`          | `rc`               |
+| `0.1.0` (bare `X.Y.Z`) | `latest` (implicit) |
+
+Install a specific channel with, e.g., `npm install @agent-assembly/sdk@rc`.
+
+## `latest` policy (pre-1.0 / pre-GA)
+
+While the project is pre-1.0 and has shipped only pre-releases, `latest` always
+points at the **highest SemVer version currently on npm, across every channel**.
+
+SemVer precedence (`alpha < beta < rc < GA`) makes this rule self-correcting and
+monotonic:
+
+- A GA publish wins over any pre-release of the same base, so `latest` naturally
+  tracks the newest GA once one exists.
+- While only pre-releases exist, `latest` tracks the newest pre-release
+  (e.g. `rc.2` over `beta.5` over `alpha.9.1`) — never the oldest.
+- It never regresses `latest` to an older build, even if a hotfix to an older
+  channel is published after a newer one.
+
+The release workflow re-asserts this invariant on every real (non-dry-run)
+publish, in both `all` and `main-only` publish modes.
+
+## One-time manual correction
+
+The workflow only advances `latest` on the **next** publish. If `latest` is
+currently stale (the bug tracked in AAASM-3840 left it pinned at
+`0.0.1-alpha.3`), a package owner with an npm publish token must run the
+correction once, out of band:
+
+```bash
+# Replace <newest> with the highest version currently on npm
+# (e.g. the current rc), then:
+npm dist-tag add @agent-assembly/sdk@<newest> latest
+```
+
+After that one-time fix, the workflow keeps `latest` current going forward.
+
+See the canonical docs at https://docs.agent-assembly.com for end-user install
+guidance.