diff --git a/dev_docs/SESSION_STATE.md b/dev_docs/SESSION_STATE.md
index 075a4fca..43c17462 100644
--- a/dev_docs/SESSION_STATE.md
+++ b/dev_docs/SESSION_STATE.md
@@ -7,6 +7,27 @@
 
 ---
 
+## SESSION 37 DISCUSSION & VERIFICATION — Phase 4.1 Complete, Phase 5 Context Ready
+
+### Work Completed This Session
+
+**Phase 4.1 Verification:**
+- Created 4.1-UAT.md with 14 test cases
+- Verified all 3 waves (classification, backend services, frontend components)
+- Result: 14/14 tests PASS
+- Committed UAT verification
+
+**Phase 5 Discussion:**
+- Identified gray areas: batch operations, quantity adjustment, search, exports
+- Clarified application workflow (sequential, not parallel)
+- Removed batch operations from scope (not applicable)
+- Added quick quantity adjustment requirement
+- Locked decisions: Hybrid quantity UI, search modal, admin exports (CSV+Excel)
+- Created 5-CONTEXT.md with all decisions for planning phase
+- Ready to advance to Phase 5 planning
+
+---
+
 ## SESSION 37 VERIFICATION — Phase 4.1 Complete (All Waves & UAT Pass)
 
 ### Work Completed (Verification Phase)