diff --git a/packages/cli/__tests__/commands/doctor.test.ts b/packages/cli/__tests__/commands/doctor.test.ts
index 60f149efd..5c2f7ce8e 100644
--- a/packages/cli/__tests__/commands/doctor.test.ts
+++ b/packages/cli/__tests__/commands/doctor.test.ts
@@ -6,6 +6,8 @@ const {
   mockFindConfigFile,
   mockLoadConfig,
   mockCreatePluginRegistry,
+  mockCreateProjectObserver,
+  mockRecordNotificationDelivery,
   mockDetectOpenClawInstallation,
   mockValidateToken,
   mockRegistry,
@@ -18,6 +20,8 @@ const {
   mockFindConfigFile: vi.fn(),
   mockLoadConfig: vi.fn(),
   mockCreatePluginRegistry: vi.fn(),
+  mockCreateProjectObserver: vi.fn(),
+  mockRecordNotificationDelivery: vi.fn(),
   mockDetectOpenClawInstallation: vi.fn(),
   mockValidateToken: vi.fn(),
   mockRegistry: {
@@ -41,9 +45,11 @@ vi.mock("@aoagents/ao-core", () => ({
   buildReactionNotificationData: () => ({ schemaVersion: 3 }),
   buildSessionTransitionNotificationData: () => ({ schemaVersion: 3 }),
   createPluginRegistry: (...args: unknown[]) => mockCreatePluginRegistry(...args),
+  createProjectObserver: (...args: unknown[]) => mockCreateProjectObserver(...args),
   findConfigFile: (...args: unknown[]) => mockFindConfigFile(...args),
   getObservabilityBaseDir: () => "/tmp/.agent-orchestrator/observability",
   loadConfig: (...args: unknown[]) => mockLoadConfig(...args),
+  recordNotificationDelivery: (...args: unknown[]) => mockRecordNotificationDelivery(...args),
   resolveNotifierTarget: (
     config: { notifiers?: Record<string, { plugin?: string }> },
     reference: string,
@@ -161,6 +167,12 @@ describe("doctor command", () => {
 
     mockCreatePluginRegistry.mockReset();
     mockCreatePluginRegistry.mockReturnValue(mockRegistry);
+    mockCreateProjectObserver.mockReset();
+    mockCreateProjectObserver.mockReturnValue({
+      recordOperation: vi.fn(),
+      setHealth: vi.fn(),
+    });
+    mockRecordNotificationDelivery.mockReset();
 
     mockRegistry.loadFromConfig.mockReset();
     mockRegistry.loadFromConfig.mockResolvedValue(undefined);
diff --git a/packages/cli/__tests__/commands/notify.test.ts b/packages/cli/__tests__/commands/notify.test.ts
index 314d8be4c..2f0d94f61 100644
--- a/packages/cli/__tests__/commands/notify.test.ts
+++ b/packages/cli/__tests__/commands/notify.test.ts
@@ -1,11 +1,19 @@
 import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
 import { Command } from "commander";
 
-const { mockCreatePluginRegistry, mockFindConfigFile, mockLoadConfig, mockRegistry } = vi.hoisted(
-  () => ({
+const {
+  mockCreatePluginRegistry,
+  mockCreateProjectObserver,
+  mockFindConfigFile,
+  mockLoadConfig,
+  mockRecordNotificationDelivery,
+  mockRegistry,
+} = vi.hoisted(() => ({
     mockCreatePluginRegistry: vi.fn(),
+    mockCreateProjectObserver: vi.fn(),
     mockFindConfigFile: vi.fn(),
     mockLoadConfig: vi.fn(),
+    mockRecordNotificationDelivery: vi.fn(),
     mockRegistry: {
       loadFromConfig: vi.fn(),
       get: vi.fn(),
@@ -13,8 +21,7 @@ const { mockCreatePluginRegistry, mockFindConfigFile, mockLoadConfig, mockRegist
       register: vi.fn(),
       loadBuiltins: vi.fn(),
     },
-  }),
-);
+  }));
 
 vi.mock("@aoagents/ao-core", () => {
   function buildSubject(input: {
@@ -43,8 +50,10 @@ vi.mock("@aoagents/ao-core", () => {
 
   return {
     createPluginRegistry: (...args: unknown[]) => mockCreatePluginRegistry(...args),
+    createProjectObserver: (...args: unknown[]) => mockCreateProjectObserver(...args),
     findConfigFile: (...args: unknown[]) => mockFindConfigFile(...args),
     loadConfig: (...args: unknown[]) => mockLoadConfig(...args),
+    recordNotificationDelivery: (...args: unknown[]) => mockRecordNotificationDelivery(...args),
     resolveNotifierTarget: (
       config: { notifiers?: Record<string, { plugin?: string }> },
       reference: string,
@@ -163,6 +172,12 @@ describe("notify command", () => {
     mockLoadConfig.mockReturnValue(makeConfig());
     mockCreatePluginRegistry.mockReset();
     mockCreatePluginRegistry.mockReturnValue(mockRegistry);
+    mockCreateProjectObserver.mockReset();
+    mockCreateProjectObserver.mockReturnValue({
+      recordOperation: vi.fn(),
+      setHealth: vi.fn(),
+    });
+    mockRecordNotificationDelivery.mockReset();
     mockRegistry.loadFromConfig.mockReset();
     mockRegistry.loadFromConfig.mockResolvedValue(undefined);
     mockRegistry.get.mockReset();
diff --git a/packages/core/src/notification-observability.ts b/packages/core/src/notification-observability.ts
index 1105b8c4b..8601b895a 100644
--- a/packages/core/src/notification-observability.ts
+++ b/packages/core/src/notification-observability.ts
@@ -79,7 +79,38 @@ export function sanitizeNotificationDeliveryReason(reason: string): string {
 }
 
 function notificationSurface(reference: string): string {
-  const suffix = reference.replace(/[^a-zA-Z0-9_-]+/g, "-").replace(/^-+|-+$/g, "");
+  let suffix = "";
+  let lastNonHyphenLength = 0;
+  let previousWasGeneratedHyphen = false;
+
+  for (const ch of reference) {
+    const code = ch.charCodeAt(0);
+    const isAlphaNumeric =
+      (code >= 0x30 && code <= 0x39) ||
+      (code >= 0x41 && code <= 0x5a) ||
+      (code >= 0x61 && code <= 0x7a);
+    const isAllowed = isAlphaNumeric || ch === "_" || ch === "-";
+
+    if (!isAllowed) {
+      if (suffix.length > 0 && !previousWasGeneratedHyphen) {
+        suffix += "-";
+        previousWasGeneratedHyphen = true;
+      }
+      continue;
+    }
+
+    if (ch === "-" && suffix.length === 0) {
+      continue;
+    }
+
+    suffix += ch;
+    previousWasGeneratedHyphen = false;
+    if (ch !== "-") {
+      lastNonHyphenLength = suffix.length;
+    }
+  }
+
+  suffix = suffix.slice(0, lastNonHyphenLength);
   return `notification.delivery.${suffix || "target"}`;
 }