diff --git a/httpd.py b/httpd.py
index 0a75807..bd48bbf 100644
--- a/httpd.py
+++ b/httpd.py
@@ -126,11 +126,17 @@ def get_db_health(db):
         ).fetchone()
         stats['added_last_day'] = row[0] if row else 0
 
-        # Dead proxies count
+        # Dead proxies count (permanently dead = -1, failing = positive)
+        row = db.execute(
+            'SELECT COUNT(*) FROM proxylist WHERE failed = -1'
+        ).fetchone()
+        stats['dead_count'] = row[0] if row else 0
+
+        # Failing proxies count (positive fail count but not permanently dead)
         row = db.execute(
             'SELECT COUNT(*) FROM proxylist WHERE failed > 0'
         ).fetchone()
-        stats['dead_count'] = row[0] if row else 0
+        stats['failing_count'] = row[0] if row else 0
 
     except Exception:
         pass
diff --git a/proxywatchd.py b/proxywatchd.py
index babccde..e8ad806 100644
--- a/proxywatchd.py
+++ b/proxywatchd.py
@@ -65,6 +65,11 @@ IP_PATTERN = r'\d{1,3}\.\d{1,3}\.\d{1,3}\.\d{1,3}'
 # Pattern for header echo - if X-Forwarded-For or Via present, proxy reveals chain
 HEADER_REVEAL_PATTERN = r'(X-Forwarded-For|Via|X-Real-Ip|Forwarded)'
 
+# Dead proxy marker - proxies with failed=-1 are permanently dead and never retested
+DEAD_PROXY = -1
+# Error categories that indicate proxy is definitely dead (not temporary failure)
+FATAL_ERROR_CATEGORIES = ('refused', 'unreachable', 'auth')
+
 # Patterns indicating judge is blocking the proxy (not a proxy failure)
 # These should NOT count as proxy failures - retry with different judge
 JUDGE_BLOCK_PATTERNS = [
@@ -839,6 +844,8 @@ class ProxyTestState():
         self.last_latency_ms = None  # average latency from successful tests
         self.exit_ip = None  # IP seen by target server (for anonymity detection)
         self.reveals_headers = None  # True if proxy adds X-Forwarded-For/Via headers
+        self.last_fail_category = None  # failure category from last test (for dead detection)
+        self.original_failcount = failcount  # failcount before this test cycle
         # SSL/TLS tracking
         self.had_ssl_test = False
         self.ssl_success = False
@@ -981,6 +988,7 @@ class ProxyTestState():
                     # Real proxy failure
                     self.failcount += 1
                     self.consecutive_success = 0
+                    self.last_fail_category = fail_category
                     return (False, fail_category)
 
 
@@ -1526,14 +1534,27 @@ class Proxywatchd():
         if len(self.collected) == 0:
             return True
         sc = 0
+        dead_count = 0
         args = []
         latency_updates = []  # (proxy, latency_ms) for successful tests
+        max_fail = config.watchd.max_fail
         for job in self.collected:
             if job.failcount == 0:
                 sc += 1
                 if job.last_latency_ms is not None:
                     latency_updates.append((job.proxy, job.last_latency_ms))
-            args.append((job.failcount, job.checktime, 1, job.country, job.proto,
+            # Check if proxy should be marked as permanently dead
+            effective_failcount = job.failcount
+            if job.failcount > 0:
+                # Mark dead if: exceeded max_fail*2, OR reached max_fail with fatal error
+                is_fatal = job.last_fail_category in FATAL_ERROR_CATEGORIES
+                if job.failcount >= max_fail * 2:
+                    effective_failcount = DEAD_PROXY
+                    dead_count += 1
+                elif job.failcount >= max_fail and is_fatal:
+                    effective_failcount = DEAD_PROXY
+                    dead_count += 1
+            args.append((effective_failcount, job.checktime, 1, job.country, job.proto,
                          job.success_count, job.total_duration, job.mitm,
                          job.consecutive_success, job.asn, job.proxy))
 
@@ -1556,7 +1577,8 @@ class Proxywatchd():
 
         now = time.time()
         if (now - self.last_update_log) >= self.log_interval or success_rate > 0:
-            _log("updating %d DB entries (success rate: %.2f%%)" % (len(self.collected), success_rate), 'watchd')
+            dead_msg = ', %d marked dead' % dead_count if dead_count > 0 else ''
+            _log("updating %d DB entries (success rate: %.2f%%%s)" % (len(self.collected), success_rate, dead_msg), 'watchd')
             self.last_update_log = now
         self._prep_db()
         query = 'UPDATE proxylist SET failed=?,tested=?,dronebl=?,country=?,proto=?,success_count=?,total_duration=?,mitm=?,consecutive_success=?,asn=? WHERE proxy=?'
@@ -1583,10 +1605,10 @@ class Proxywatchd():
         stale_seconds = config.watchd.stale_days * 86400
         cutoff = int(time.time()) - stale_seconds
         self._prep_db()
-        # delete proxies that: failed >= max_fail AND last tested before cutoff
+        # delete proxies that: (failed >= max_fail OR permanently dead) AND last tested before cutoff
         result = self.mysqlite.execute(
-            'DELETE FROM proxylist WHERE failed >= ? AND tested < ?',
-            (config.watchd.max_fail, cutoff)
+            'DELETE FROM proxylist WHERE (failed >= ? OR failed = ?) AND tested < ?',
+            (config.watchd.max_fail, DEAD_PROXY, cutoff)
         )
         count = result.rowcount if hasattr(result, 'rowcount') else 0
         self.mysqlite.commit()