diff --git a/apps/api/src/api/git_repositories.py b/apps/api/src/api/git_repositories.py
index abd24d6..05b00f0 100644
--- a/apps/api/src/api/git_repositories.py
+++ b/apps/api/src/api/git_repositories.py
@@ -882,30 +882,75 @@ async def get_repository_branches(
     if repo is None or repo.project_id != project_id:
         raise HTTPException(status_code=status.HTTP_404_NOT_FOUND, detail="repository not found")
 
-    if not os.path.exists(repo.path):
-        raise HTTPException(status_code=status.HTTP_404_NOT_FOUND, detail="repository not found on disk")
+    # Try local repo first
+    is_valid_git_repo = os.path.isdir(os.path.join(repo.path, ".git"))
 
-    try:
-        branches, default_branch = list_branches(repo.path)
-        return BranchesResponse(
-            branches=[
-                {
-                    "name": b.name,
-                    "is_default": b.is_default,
-                    "last_commit": b.last_commit,
-                }
-                for b in branches
-            ],
-            default_branch=default_branch,
-        )
-    except RuntimeError as e:
-        logger.error(
-            "Failed to list branches for repo %s: %s",
-            repo_id,
-            str(e),
-            exc_info=True,
-        )
-        raise HTTPException(status_code=status.HTTP_400_BAD_REQUEST, detail=str(e))
+    if is_valid_git_repo:
+        try:
+            branches, default_branch = list_branches(repo.path)
+            return BranchesResponse(
+                branches=[
+                    {
+                        "name": b.name,
+                        "is_default": b.is_default,
+                        "last_commit": b.last_commit,
+                    }
+                    for b in branches
+                ],
+                default_branch=default_branch,
+            )
+        except RuntimeError as e:
+            logger.error(
+                "Failed to list branches for repo %s: %s",
+                repo_id,
+                str(e),
+                exc_info=True,
+            )
+            raise HTTPException(status_code=status.HTTP_500_INTERNAL_SERVER_ERROR, detail=str(e)) from e
+
+    # Local repo missing/corrupt — try remote if available
+    if repo.remote_url:
+        try:
+            result = subprocess.run(
+                ["git", "ls-remote", "--heads", repo.remote_url],
+                capture_output=True,
+                text=True,
+                timeout=30,
+            )
+            if result.returncode == 0:
+                remote_branches = []
+                default_branch = "main"
+                for line in result.stdout.strip().split("\n"):
+                    if line:
+                        parts = line.split("\t")
+                        if len(parts) == 2:
+                            ref = parts[1]
+                            if ref.startswith("refs/heads/"):
+                                branch_name = ref[len("refs/heads/"):]
+                                remote_branches.append(branch_name)
+                                if branch_name == "main" or branch_name == "master":
+                                    default_branch = branch_name
+                if remote_branches:
+                    return BranchesResponse(
+                        branches=[
+                            {
+                                "name": b,
+                                "is_default": b == default_branch,
+                                "last_commit": None,
+                            }
+                            for b in remote_branches
+                        ],
+                        default_branch=default_branch,
+                    )
+        except subprocess.TimeoutExpired:
+            logger.warning("ls-remote timed out for repo %s", repo_id)
+        except Exception as e:
+            logger.warning("ls-remote failed for repo %s: %s", repo_id, str(e))
+
+    raise HTTPException(
+        status_code=status.HTTP_404_NOT_FOUND,
+        detail="repository not found on disk — re-clone or re-create the repository",
+    )
 
 
 @router.post(
diff --git a/apps/web/src/components/workspace-create-form.tsx b/apps/web/src/components/workspace-create-form.tsx
index 7d62a00..983f90b 100644
--- a/apps/web/src/components/workspace-create-form.tsx
+++ b/apps/web/src/components/workspace-create-form.tsx
@@ -57,8 +57,12 @@ export function WorkspaceCreateForm({
 					: git.branches[0];
 			setSelectedBranch(preferred);
 			setIsNewBranch(false);
+		} else if (git.error && git.branches.length === 0 && !isNewBranch) {
+			// API failed — default to manual entry so user can type a branch
+			setIsNewBranch(true);
+			setSelectedBranch("__manual__");
 		}
-	}, [git.branches, git.defaultBranch, selectedBranch]);
+	}, [git.branches, git.defaultBranch, git.error, selectedBranch, isNewBranch]);
 
 	/* ── Load projects (standalone mode only) ── */
 	const loadProjects = useCallback(async () => {
@@ -236,6 +240,20 @@ export function WorkspaceCreateForm({
 					<label>
 						<Icon name="branch" size="sm" /> Branch
 					</label>
+
+					{/* Show a hint when branches couldn’t be loaded */}
+					{git.error && git.branches.length === 0 && selectedRepo && (
+						<p
+							className="muted"
+							style={{
+								fontSize: "var(--font-size-xs)",
+								marginBottom: "0.25rem",
+							}}
+						>
+							Couldn’t load branches — type one manually.
+						</p>
+					)}
+
 					<select
 						value={selectedBranch}
 						onChange={(e) => handleBranchChange(e.target.value)}
@@ -258,14 +276,9 @@ export function WorkspaceCreateForm({
 						))}
 
 						<option value="__new__">+ Create new branch...</option>
-
-						{/* If branch fetch failed, offer manual entry */}
-						{git.error && git.branches.length === 0 && (
-							<option value="__manual__">✎ Enter branch name manually...</option>
-						)}
 					</select>
 
-					{/* New branch text input */}
+					{/* Text input for new branch or manual entry */}
 					{isNewBranch && (
 						<input
 							type="text"
diff --git a/apps/web/src/hooks/use-git-repo.ts b/apps/web/src/hooks/use-git-repo.ts
index e24900c..404b2e1 100644
--- a/apps/web/src/hooks/use-git-repo.ts
+++ b/apps/web/src/hooks/use-git-repo.ts
@@ -72,7 +72,11 @@ export interface UseGitRepoResult {
 	/** Delete a branch. */
 	deleteBranch: (name: string, force?: boolean) => Promise<void>;
 	/** Merge source into current (or target) branch. */
-	merge: (sourceBranch: string, targetBranch?: string, message?: string) => Promise<void>;
+	merge: (
+		sourceBranch: string,
+		targetBranch?: string,
+		message?: string,
+	) => Promise<void>;
 	/** Clear the current error. */
 	clearError: () => void;
 }
@@ -90,7 +94,7 @@ export function useGitRepo(
 	const [error, setError] = useState<string | null>(null);
 
 	const withLoading = useCallback(
-		async <T,>(fn: () => Promise<T>): Promise<T> => {
+		async <T>(fn: () => Promise<T>): Promise<T> => {
 			setLoading(true);
 			setError(null);
 			try {
@@ -157,9 +161,7 @@ export function useGitRepo(
 	const commit = useCallback(
 		async (message: string, files?: string[]) => {
 			if (!projectId || !repoId) return;
-			await withLoading(() =>
-				commitChanges(projectId, repoId, message, files),
-			);
+			await withLoading(() => commitChanges(projectId, repoId, message, files));
 			await refreshStatus();
 		},
 		[projectId, repoId, withLoading, refreshStatus],