diff --git a/server/src/content/mod.rs b/server/src/content/mod.rs
index 179fe4823..dd150c73e 100644
--- a/server/src/content/mod.rs
+++ b/server/src/content/mod.rs
@@ -20,6 +20,8 @@ use bevy_app::prelude::*;
 use bevy_ecs::prelude::*;
 use std::path::PathBuf;
 
+use crate::knowledge::ContentEntityRegistry;
+
 /// Configuration for the content loader.
 /// Set the content root path before adding ContentPlugin.
 #[derive(Resource, Debug, Clone)]
@@ -52,6 +54,10 @@ impl Plugin for ContentPlugin {
             app.insert_resource(ContentConfig::default());
         }
 
+        // ContentEntityRegistry is required by spawn_npc (D-079).
+        // Init here so ContentPlugin works standalone without KnowledgePlugin.
+        app.init_resource::<ContentEntityRegistry>();
+
         app.add_systems(Startup, load_and_spawn_content);
         app.add_systems(PostUpdate, hot_reload::hot_reload_content);
 
diff --git a/server/src/content/spawn.rs b/server/src/content/spawn.rs
index 9e0c5e75e..43d6fe09f 100644
--- a/server/src/content/spawn.rs
+++ b/server/src/content/spawn.rs
@@ -22,6 +22,7 @@ use std::collections::BTreeMap;
 
 use crate::content::loader::{ContentStore, DistrictContent};
 use crate::content::types;
+use crate::knowledge::content_registry::ContentEntityRegistry;
 use crate::knowledge::graph::KnowledgeGraph;
 use crate::knowledge::registry::{EntityRegistry, StableEntityId};
 use crate::knowledge::types::{
@@ -213,6 +214,12 @@ fn spawn_npc(world: &mut World, profile: &types::NpcProfile, result: &mut SpawnR
         ContentSlug(profile.canonical_id.clone()),
     ));
 
+    // Register in ContentEntityRegistry so KnowledgeGrant::Entity can resolve entity_ref strings
+    // (D-079: ContentEntityRegistry populated at NPC spawn time)
+    world
+        .resource_mut::<ContentEntityRegistry>()
+        .register(profile.canonical_id.clone(), stable_id);
+
     result
         .npc_ids
         .insert(profile.canonical_id.clone(), stable_id);
@@ -296,6 +303,7 @@ fn resolve_information(
                         source: KnowledgeSource::Background,
                         state: KnowledgeState::Active,
                         acquired_tick: 0,
+                        disclosure_blocked: false,
                     },
                 )
             })
@@ -648,6 +656,7 @@ mod tests {
     fn create_test_world() -> World {
         let mut world = World::new();
         world.init_resource::<EntityRegistry>();
+        world.init_resource::<ContentEntityRegistry>();
         world
     }
 
diff --git a/server/src/content/types.rs b/server/src/content/types.rs
index 0d67cc99e..ab9d687c2 100644
--- a/server/src/content/types.rs
+++ b/server/src/content/types.rs
@@ -491,10 +491,30 @@ pub struct DialogueLine {
     pub knowledge_grant: Option<KnowledgeGrant>,
 }
 
+/// Knowledge grant attached to a dialogue line (D-079).
+///
+/// Untagged enum — serde tries each variant in order:
+/// `Fact` matches YAML with `fact_id` field.
+/// `Entity` matches YAML with `entity_ref` field.
+/// `Compound` variant deferred to Sprint 18.
 #[derive(Debug, Clone, Deserialize)]
-pub struct KnowledgeGrant {
-    pub fact_id: String,
-    pub confidence: String,
+#[serde(untagged)]
+pub enum KnowledgeGrant {
+    /// Grant knowledge of a non-entity fact.
+    /// Format: fact_id "category.topic", confidence string.
+    Fact {
+        fact_id: String,
+        confidence: String,
+    },
+    /// Grant knowledge of an entity (creates EntityKnowledge entry in observer's KG).
+    /// Required for contradiction detection: testimony must create ToldBy EntityKnowledge
+    /// so a subsequent DirectObservation can detect a discrepancy (D-079, D-083).
+    Entity {
+        entity_ref: String,
+        #[serde(default)]
+        attributes: BTreeMap<String, String>,
+        confidence: String,
+    },
 }
 
 // ---------------------------------------------------------------------------
diff --git a/server/src/knowledge/content_registry.rs b/server/src/knowledge/content_registry.rs
new file mode 100644
index 000000000..03017414c
--- /dev/null
+++ b/server/src/knowledge/content_registry.rs
@@ -0,0 +1,86 @@
+//! ContentEntityRegistry resource (D-079).
+//!
+//! Maps NPC canonical_id strings (e.g., "kael-davan") to their runtime StableIds.
+//! Populated at NPC spawn time; queried at KnowledgeGrant processing time to
+//! resolve `entity_ref` strings in `KnowledgeGrant::Entity` variants.
+//!
+//! BTreeMap for deterministic iteration (D-010 principle 4).
+
+use bevy_ecs::prelude::*;
+use std::collections::BTreeMap;
+
+use super::types::StableId;
+
+/// Content ID → StableId registry.
+///
+/// Populated by `spawn_npc` for every authored NPC. Read by the
+/// `KnowledgeGranted` event handler to resolve `entity_ref` strings at
+/// grant processing time (D-079).
+#[derive(Resource, Debug, Default)]
+pub struct ContentEntityRegistry {
+    entries: BTreeMap<String, StableId>,
+}
+
+impl ContentEntityRegistry {
+    /// Register a content_id → StableId mapping.
+    ///
+    /// Idempotent for the same (content_id, stable_id) pair.
+    /// If the same content_id is registered twice with different StableIds,
+    /// the latest call wins (last-write semantics; warn in caller if this is unexpected).
+    pub fn register(&mut self, content_id: impl Into<String>, stable_id: StableId) {
+        self.entries.insert(content_id.into(), stable_id);
+    }
+
+    /// Resolve a content_id string to a StableId.
+    ///
+    /// Returns `None` if the entity_ref is not registered. Callers should
+    /// emit `tracing::warn!` and drop the grant when `None` is returned.
+    pub fn resolve(&self, entity_ref: &str) -> Option<StableId> {
+        self.entries.get(entity_ref).copied()
+    }
+
+    /// Number of registered entries.
+    pub fn len(&self) -> usize {
+        self.entries.len()
+    }
+
+    /// Whether the registry is empty.
+    pub fn is_empty(&self) -> bool {
+        self.entries.is_empty()
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn register_and_resolve() {
+        let mut registry = ContentEntityRegistry::default();
+        let sid = StableId(42);
+        registry.register("kael-davan", sid);
+
+        assert_eq!(registry.resolve("kael-davan"), Some(sid));
+        assert_eq!(registry.resolve("unknown-npc"), None);
+        assert_eq!(registry.len(), 1);
+    }
+
+    #[test]
+    fn register_overwrites() {
+        let mut registry = ContentEntityRegistry::default();
+        let sid_a = StableId(1);
+        let sid_b = StableId(2);
+        registry.register("npc-x", sid_a);
+        registry.register("npc-x", sid_b);
+
+        assert_eq!(registry.resolve("npc-x"), Some(sid_b));
+        assert_eq!(registry.len(), 1);
+    }
+
+    #[test]
+    fn empty_registry() {
+        let registry = ContentEntityRegistry::default();
+        assert!(registry.is_empty());
+        assert_eq!(registry.resolve("any"), None);
+    }
+}
diff --git a/server/src/knowledge/events.rs b/server/src/knowledge/events.rs
index 48615e68f..45b8a8982 100644
--- a/server/src/knowledge/events.rs
+++ b/server/src/knowledge/events.rs
@@ -4,6 +4,7 @@
 //! KnowledgeEvents; the processing system drains them per tick.
 
 use bevy_ecs::prelude::*;
+use std::collections::BTreeMap;
 
 use crate::simulation::movement::TilePosition;
 
@@ -11,6 +12,41 @@ use super::graph::KnowledgeGraph;
 use super::registry::EntityRegistry;
 use super::types::*;
 
+// ---------------------------------------------------------------------------
+// Processed knowledge grant types (D-079)
+// ---------------------------------------------------------------------------
+
+/// Processed Fact grant — confidence string parsed to typed enum at creation time.
+/// Used in `KnowledgeEventType::KnowledgeGranted`.
+#[derive(Debug, Clone)]
+pub struct ProcessedFactGrant {
+    pub fact_id: FactId,
+    pub confidence: KnowledgeConfidence,
+}
+
+/// Processed Entity grant — entity_ref resolved to StableId at creation time.
+/// Used in `KnowledgeEventType::KnowledgeGranted`.
+///
+/// Creates an `EntityKnowledge` entry in the observer's KG with `ToldBy` source,
+/// enabling contradiction detection when a subsequent `DirectObservation` disagrees.
+#[derive(Debug, Clone)]
+pub struct ProcessedEntityGrant {
+    pub target_id: StableId,
+    pub attributes: BTreeMap<String, String>,
+    pub confidence: KnowledgeConfidence,
+}
+
+/// Typed knowledge grant payload — all string fields resolved at event creation.
+#[derive(Debug, Clone)]
+pub enum ProcessedKnowledgeGrant {
+    Fact(ProcessedFactGrant),
+    Entity(ProcessedEntityGrant),
+}
+
+// ---------------------------------------------------------------------------
+// Knowledge event types
+// ---------------------------------------------------------------------------
+
 /// Events that modify knowledge graphs. Produced by perception and
 /// other systems. Consumed by the knowledge update system.
 #[derive(Debug, Clone)]
@@ -36,6 +72,16 @@ pub enum KnowledgeEventType {
         target: Entity,
         interaction_type: InteractionType,
     },
+    /// Knowledge granted to observer via dialogue line selection (D-079).
+    ///
+    /// Fires at line selection time in `process_talk_interaction`.
+    /// Source is `ToldBy { source_id, tick }` for NPC testimony.
+    /// For Fact grants, the granting NPC's KG must contain the fact (guardrail enforced
+    /// at event creation time — event is only pushed if guardrail passes).
+    KnowledgeGranted {
+        grant: ProcessedKnowledgeGrant,
+        source: KnowledgeSource,
+    },
 }
 
 /// Type of interaction for walk-away recording (D-064).
@@ -57,6 +103,55 @@ pub struct KnowledgeEventQueue {
     pub(crate) events: Vec<KnowledgeEvent>,
 }
 
+// ---------------------------------------------------------------------------
+// Contradiction detection output (D-083)
+// ---------------------------------------------------------------------------
+
+/// Event emitted when `observe_entity()` detects a position contradiction
+/// between a `ToldBy` source and a `DirectObservation`.
+///
+/// Consumed by the monologue system (D-083 → monologue trigger) and
+/// potentially the storyteller. One event per detected contradiction per tick.
+///
+/// Display names are pre-resolved by `process_knowledge_events` via EntityRegistry
+/// and NpcName, so downstream consumers (monologue) are pure string consumers.
+#[derive(Debug, Clone)]
+pub struct ContradictionDetectedEvent {
+    /// The observer who detected the contradiction.
+    pub observer: Entity,
+    /// The entity whose position was contradicted.
+    pub target: StableId,
+    /// Full contradiction details (who told what, where observed, when).
+    pub claim: ContradictionClaim,
+    /// Pre-resolved display name of the NPC who told the false position (told_by source).
+    pub source_display_name: String,
+    /// Pre-resolved display name of the entity whose position was contradicted (target).
+    pub subject_display_name: String,
+}
+
+/// Resource: queue of contradictions detected this tick.
+///
+/// Populated by `process_knowledge_events` when `observe_entity()` returns
+/// a `ContradictionClaim`. Drained by downstream systems (monologue, storyteller).
+#[derive(Resource, Default)]
+pub struct ContradictionDetectedQueue {
+    events: Vec<ContradictionDetectedEvent>,
+}
+
+impl ContradictionDetectedQueue {
+    pub fn push(&mut self, event: ContradictionDetectedEvent) {
+        self.events.push(event);
+    }
+
+    pub fn drain(&mut self) -> Vec<ContradictionDetectedEvent> {
+        std::mem::take(&mut self.events)
+    }
+
+    pub fn is_empty(&self) -> bool {
+        self.events.is_empty()
+    }
+}
+
 impl KnowledgeEventQueue {
     /// Push a knowledge event into the queue.
     pub fn push(&mut self, event: KnowledgeEvent) {
@@ -82,9 +177,15 @@ impl KnowledgeEventQueue {
 /// System: process pending knowledge events.
 /// Runs once per tick, drains KnowledgeEventQueue and applies updates
 /// to the relevant KnowledgeGraph components.
+///
+/// On contradiction detection (D-083):
+/// - Shifts the ToldBy source entity to PersonOfInterest in the observer's KG.
+/// - Pre-resolves display names for downstream monologue consumer.
 pub fn process_knowledge_events(
     mut queue: ResMut<KnowledgeEventQueue>,
+    mut contradiction_queue: ResMut<ContradictionDetectedQueue>,
     registry: Res<EntityRegistry>,
+    npc_names: Query<&crate::simulation::conversation::NpcName>,
     mut knowledge_query: Query<&mut KnowledgeGraph>,
 ) {
     let events = queue.drain();
@@ -96,7 +197,59 @@ pub fn process_knowledge_events(
         match event.event_type {
             KnowledgeEventType::DirectObservation { target, position } => {
                 if let Some(stable_id) = registry.to_stable(target) {
-                    observer_kg.observe_entity(stable_id, position, event.tick);
+                    if let Some(claim) =
+                        observer_kg.observe_entity(stable_id, position, event.tick)
+                    {
+                        // StableId is Copy — capture before moving claim into event.
+                        let told_by = claim.told_by;
+
+                        // Relationship shift (D-083): NPC who provided false info
+                        // becomes PersonOfInterest in the observer's knowledge graph.
+                        // Upsert: create a minimal entry if the source isn't yet known.
+                        observer_kg
+                            .entities
+                            .entry(told_by)
+                            .and_modify(|e| e.relationship = RelationshipState::PersonOfInterest)
+                            .or_insert_with(|| EntityKnowledge {
+                                last_known_position: None,
+                                last_observed_tick: 0,
+                                last_updated_tick: event.tick,
+                                confidence: KnowledgeConfidence::Suspects,
+                                source: KnowledgeSource::Inferred { basis: vec![] },
+                                state: KnowledgeState::Active,
+                                relationship: RelationshipState::PersonOfInterest,
+                                known_attributes: BTreeMap::new(),
+                                contradicted_claim: None,
+                            });
+
+                        // Pre-resolve display names for the monologue consumer.
+                        let source_entity = registry.to_entity(&told_by);
+                        let source_display_name = source_entity
+                            .and_then(|e| npc_names.get(e).ok())
+                            .map(|n| n.0.clone())
+                            .unwrap_or_else(|| format!("#{}", told_by.0));
+                        let subject_display_name = npc_names
+                            .get(target)
+                            .ok()
+                            .map(|n| n.0.clone())
+                            .unwrap_or_else(|| format!("#{}", stable_id.0));
+
+                        tracing::info!(
+                            observer = ?event.observer,
+                            target = stable_id.0,
+                            told_by = told_by.0,
+                            source = source_display_name,
+                            subject = subject_display_name,
+                            "Contradiction detected: ToldBy position differs from direct observation (D-083)"
+                        );
+                        contradiction_queue.push(ContradictionDetectedEvent {
+                            observer: event.observer,
+                            target: stable_id,
+                            claim,
+                            source_display_name,
+                            subject_display_name,
+                        });
+                    }
                 } else {
                     debug_assert!(
                         false,
@@ -135,6 +288,68 @@ pub fn process_knowledge_events(
                     );
                 }
             }
+            KnowledgeEventType::KnowledgeGranted { grant, source } => {
+                match grant {
+                    ProcessedKnowledgeGrant::Fact(fg) => {
+                        let should_insert = observer_kg
+                            .facts
+                            .get(&fg.fact_id)
+                            .map(|existing| fg.confidence > existing.confidence)
+                            .unwrap_or(true);
+                        if should_insert {
+                            observer_kg.facts.insert(
+                                fg.fact_id.clone(),
+                                FactKnowledge {
+                                    confidence: fg.confidence,
+                                    source,
+                                    state: KnowledgeState::Active,
+                                    acquired_tick: event.tick,
+                                    disclosure_blocked: false,
+                                },
+                            );
+                            tracing::debug!(
+                                "KnowledgeGranted(Fact): {:?} at confidence {:?}, tick {}",
+                                fg.fact_id,
+                                fg.confidence,
+                                event.tick,
+                            );
+                        }
+                    }
+                    ProcessedKnowledgeGrant::Entity(eg) => {
+                        // Insert or upgrade entity knowledge entry.
+                        // Always use ToldBy source — entity grants come from NPC testimony.
+                        let entry = observer_kg.entities.entry(eg.target_id).or_insert_with(|| {
+                            EntityKnowledge {
+                                last_known_position: None,
+                                last_observed_tick: 0,
+                                last_updated_tick: event.tick,
+                                confidence: eg.confidence,
+                                source: source.clone(),
+                                state: KnowledgeState::Active,
+                                relationship: RelationshipState::Unknown,
+                                known_attributes: BTreeMap::new(),
+                                contradicted_claim: None,
+                            }
+                        });
+                        // Upgrade confidence and source if new grant is higher.
+                        if eg.confidence > entry.confidence {
+                            entry.confidence = eg.confidence;
+                            entry.source = source;
+                            entry.last_updated_tick = event.tick;
+                        }
+                        // Merge attributes (grant may supply partial attribute set).
+                        for (k, v) in eg.attributes {
+                            entry.known_attributes.insert(k, v);
+                        }
+                        tracing::debug!(
+                            "KnowledgeGranted(Entity): StableId {:?} at confidence {:?}, tick {}",
+                            eg.target_id,
+                            eg.confidence,
+                            event.tick,
+                        );
+                    }
+                }
+            }
         }
     }
 }
@@ -196,6 +411,7 @@ mod tests {
         let _ = observer_sid; // registered for completeness
 
         world.insert_resource(registry);
+        world.insert_resource(ContradictionDetectedQueue::default());
 
         let mut queue = KnowledgeEventQueue::default();
         queue.push(KnowledgeEvent {
@@ -236,6 +452,7 @@ mod tests {
         registry.register(observer);
 
         world.insert_resource(registry);
+        world.insert_resource(ContradictionDetectedQueue::default());
 
         let mut queue = KnowledgeEventQueue::default();
         queue.push(KnowledgeEvent {
@@ -261,6 +478,7 @@ mod tests {
         let mut world = World::new();
         let registry = EntityRegistry::new(0);
         world.insert_resource(registry);
+        world.insert_resource(ContradictionDetectedQueue::default());
 
         let fake_observer = world.spawn_empty().id(); // no KnowledgeGraph
         let fake_target = world.spawn_empty().id();
@@ -339,4 +557,175 @@ mod tests {
             "decay should run on tick 10 and downgrade confidence"
         );
     }
+
+    #[test]
+    fn process_direct_observation_detects_contradiction() {
+        let mut world = World::new();
+        let mut registry = EntityRegistry::new(0);
+
+        let target_ecs = world.spawn_empty().id();
+        let target_sid = registry.register(target_ecs);
+        let informant_sid = StableId(999);
+
+        // Observer has ToldBy knowledge: target at (10, 10) at tick 100
+        let mut kg = KnowledgeGraph::new();
+        kg.entities.insert(
+            target_sid,
+            EntityKnowledge {
+                last_known_position: Some(TilePosition::new(10, 10, 0)),
+                last_observed_tick: 0,
+                last_updated_tick: 100,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant_sid,
+                    tick: 100,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        let observer = world.spawn(kg).id();
+        registry.register(observer);
+        world.insert_resource(registry);
+        world.insert_resource(ContradictionDetectedQueue::default());
+
+        // Push DirectObservation at DIFFERENT position, within window
+        let mut queue = KnowledgeEventQueue::default();
+        queue.push(KnowledgeEvent {
+            observer,
+            tick: 200,
+            event_type: KnowledgeEventType::DirectObservation {
+                target: target_ecs,
+                position: TilePosition::new(15, 10, 0),
+            },
+        });
+        world.insert_resource(queue);
+
+        let mut schedule = bevy_ecs::schedule::Schedule::default();
+        schedule.add_systems(process_knowledge_events);
+        schedule.run(&mut world);
+
+        // Verify: KG entry is Contradicted
+        let kg = world.entity(observer).get::<KnowledgeGraph>().unwrap();
+        let entry = kg.entity_knowledge(&target_sid).unwrap();
+        assert_eq!(entry.state, KnowledgeState::Contradicted);
+        assert!(entry.contradicted_claim.is_some());
+        let claim = entry.contradicted_claim.as_ref().unwrap();
+        assert_eq!(claim.told_by, informant_sid);
+        assert_eq!(claim.claimed_position, TilePosition::new(10, 10, 0));
+        assert_eq!(claim.observed_position, TilePosition::new(15, 10, 0));
+
+        // Verify: ContradictionDetectedQueue has the event
+        let cq = world.resource::<ContradictionDetectedQueue>();
+        assert_eq!(cq.events.len(), 1);
+        assert_eq!(cq.events[0].target, target_sid);
+        assert_eq!(cq.events[0].claim.told_by, informant_sid);
+    }
+
+    #[test]
+    fn no_contradiction_event_when_position_matches() {
+        // DirectObservation at the SAME position as ToldBy:
+        // ContradictionDetectedQueue must stay empty.
+        let mut world = World::new();
+        let mut registry = EntityRegistry::new(0);
+
+        let target_ecs = world.spawn_empty().id();
+        let target_sid = registry.register(target_ecs);
+        let informant_sid = StableId(77);
+
+        let mut kg = KnowledgeGraph::new();
+        kg.entities.insert(
+            target_sid,
+            EntityKnowledge {
+                last_known_position: Some(TilePosition::new(10, 10, 0)),
+                last_observed_tick: 0,
+                last_updated_tick: 100,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant_sid,
+                    tick: 100,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        let observer = world.spawn(kg).id();
+        registry.register(observer);
+        world.insert_resource(registry);
+        world.insert_resource(ContradictionDetectedQueue::default());
+
+        // DirectObservation at the SAME position
+        let mut queue = KnowledgeEventQueue::default();
+        queue.push(KnowledgeEvent {
+            observer,
+            tick: 200,
+            event_type: KnowledgeEventType::DirectObservation {
+                target: target_ecs,
+                position: TilePosition::new(10, 10, 0), // same position
+            },
+        });
+        world.insert_resource(queue);
+
+        let mut schedule = bevy_ecs::schedule::Schedule::default();
+        schedule.add_systems(process_knowledge_events);
+        schedule.run(&mut world);
+
+        let cq = world.resource::<ContradictionDetectedQueue>();
+        assert!(
+            cq.is_empty(),
+            "Matching position should not produce a contradiction event"
+        );
+        let kg = world.entity(observer).get::<KnowledgeGraph>().unwrap();
+        let entry = kg.entity_knowledge(&target_sid).unwrap();
+        assert_eq!(entry.state, KnowledgeState::Active);
+    }
+
+    #[test]
+    fn contradiction_detected_queue_drains_correctly() {
+        // ContradictionDetectedQueue.drain() should empty the queue
+        // and return all accumulated events.
+        let mut queue = ContradictionDetectedQueue::default();
+        assert!(queue.is_empty());
+
+        let mut world = World::new();
+        let e = world.spawn_empty().id();
+
+        queue.push(ContradictionDetectedEvent {
+            observer: e,
+            target: StableId(1),
+            claim: ContradictionClaim {
+                told_by: StableId(99),
+                told_tick: 50,
+                claimed_position: TilePosition::new(1, 1, 0),
+                observed_position: TilePosition::new(5, 5, 0),
+                detected_tick: 100,
+            },
+            source_display_name: "Sera".to_string(),
+            subject_display_name: "Kael".to_string(),
+        });
+        queue.push(ContradictionDetectedEvent {
+            observer: e,
+            target: StableId(2),
+            claim: ContradictionClaim {
+                told_by: StableId(88),
+                told_tick: 60,
+                claimed_position: TilePosition::new(2, 2, 0),
+                observed_position: TilePosition::new(6, 6, 0),
+                detected_tick: 100,
+            },
+            source_display_name: "NPC_88".to_string(),
+            subject_display_name: "NPC_2".to_string(),
+        });
+
+        assert!(!queue.is_empty());
+        let drained = queue.drain();
+        assert_eq!(drained.len(), 2);
+        assert!(queue.is_empty(), "Queue should be empty after drain");
+    }
 }
diff --git a/server/src/knowledge/graph.rs b/server/src/knowledge/graph.rs
index 77e725155..5b9cf8bb9 100644
--- a/server/src/knowledge/graph.rs
+++ b/server/src/knowledge/graph.rs
@@ -108,7 +108,46 @@ impl KnowledgeGraph {
     // --- Write Operations ---
 
     /// Record a direct observation of another entity (entity is in LOS).
-    pub fn observe_entity(&mut self, target: StableId, position: TilePosition, tick: u64) {
+    ///
+    /// Returns `Some(ContradictionClaim)` if a position contradiction was
+    /// detected against a recent `ToldBy` source (D-083). The caller should
+    /// push a `ContradictionDetected` event when this returns `Some`.
+    pub fn observe_entity(
+        &mut self,
+        target: StableId,
+        position: TilePosition,
+        tick: u64,
+    ) -> Option<ContradictionClaim> {
+        // --- Pre-overwrite contradiction check (D-083) ---
+        //
+        // If the existing entry has a ToldBy source with a different position,
+        // and the told-tick is within CONTRADICTION_WINDOW_TICKS of now,
+        // this is a contradiction: someone lied or was wrong about where
+        // this entity would be.
+        let contradiction = self.entities.get(&target).and_then(|existing| {
+            if let KnowledgeSource::ToldBy {
+                source_id,
+                tick: told_tick,
+            } = &existing.source
+            {
+                let age = tick.saturating_sub(*told_tick);
+                let claimed_pos = existing.last_known_position?;
+                if age <= CONTRADICTION_WINDOW_TICKS && claimed_pos != position {
+                    Some(ContradictionClaim {
+                        told_by: *source_id,
+                        told_tick: *told_tick,
+                        claimed_position: claimed_pos,
+                        observed_position: position,
+                        detected_tick: tick,
+                    })
+                } else {
+                    None
+                }
+            } else {
+                None
+            }
+        });
+
         let entry = self
             .entities
             .entry(target)
@@ -121,18 +160,25 @@ impl KnowledgeGraph {
                 state: KnowledgeState::Active,
                 relationship: RelationshipState::Unknown,
                 known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
             });
         entry.last_known_position = Some(position);
         entry.last_observed_tick = tick;
         entry.last_updated_tick = tick;
         entry.confidence = KnowledgeConfidence::Direct;
         entry.source = KnowledgeSource::DirectObservation { tick };
-        // Stale entries become Active again on fresh observation.
-        // Contradicted entries stay Contradicted even if you're looking
-        // at the entity right now — the contradiction is still unresolved.
-        if entry.state == KnowledgeState::Stale {
+
+        if contradiction.is_some() {
+            entry.state = KnowledgeState::Contradicted;
+            entry.contradicted_claim = contradiction.clone();
+        } else if entry.state == KnowledgeState::Stale {
+            // Stale entries become Active again on fresh observation.
             entry.state = KnowledgeState::Active;
         }
+        // Contradicted entries without a new contradiction stay Contradicted —
+        // the previous contradiction is still unresolved.
+
+        contradiction
     }
 
     /// Entity has left the observer's LOS. Downgrade from Direct.
@@ -168,6 +214,7 @@ impl KnowledgeGraph {
                 state: KnowledgeState::Active,
                 relationship: RelationshipState::Unknown,
                 known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
             });
 
         let type_str = match interaction_type {
@@ -387,6 +434,7 @@ mod tests {
             source: KnowledgeSource::Background,
             state: KnowledgeState::Active,
             acquired_tick: 0,
+            disclosure_blocked: false,
         };
         let g = KnowledgeGraph::with_background(vec![(fact_id.clone(), fact)]);
 
@@ -513,6 +561,7 @@ mod tests {
                     source: KnowledgeSource::Background,
                     state: KnowledgeState::Active,
                     acquired_tick: 0,
+                    disclosure_blocked: false,
                 },
             ),
             (
@@ -522,6 +571,7 @@ mod tests {
                     source: KnowledgeSource::Background,
                     state: KnowledgeState::Active,
                     acquired_tick: 0,
+                    disclosure_blocked: false,
                 },
             ),
         ];
@@ -626,6 +676,7 @@ mod tests {
                 source: KnowledgeSource::Background,
                 state: KnowledgeState::Active,
                 acquired_tick: 0,
+                disclosure_blocked: false,
             },
         )]);
 
@@ -648,6 +699,7 @@ mod tests {
                 source: KnowledgeSource::Background,
                 state: KnowledgeState::Active,
                 acquired_tick: 0,
+                disclosure_blocked: false,
             },
         )]);
 
@@ -746,4 +798,362 @@ mod tests {
             "FactionOnly must pass when observer knows the matching faction_id"
         );
     }
+
+    // --- Contradiction detection tests (D-083, #547) ---
+
+    #[test]
+    fn contradiction_detected_when_told_by_position_differs() {
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(1);
+        let informant = StableId(99);
+
+        // Someone told us the target is at (10, 10) at tick 100
+        g.entities.insert(
+            target,
+            EntityKnowledge {
+                last_known_position: Some(make_position(10, 10)),
+                last_observed_tick: 0,
+                last_updated_tick: 100,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant,
+                    tick: 100,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        // Direct observation at (15, 10) at tick 200 — within window (600 ticks)
+        let result = g.observe_entity(target, make_position(15, 10), 200);
+
+        // Contradiction should be detected
+        assert!(result.is_some(), "Should detect contradiction");
+        let claim = result.unwrap();
+        assert_eq!(claim.told_by, informant);
+        assert_eq!(claim.told_tick, 100);
+        assert_eq!(claim.claimed_position, make_position(10, 10));
+        assert_eq!(claim.observed_position, make_position(15, 10));
+        assert_eq!(claim.detected_tick, 200);
+
+        // Entry should be Contradicted
+        let entry = g.entity_knowledge(&target).unwrap();
+        assert_eq!(entry.state, KnowledgeState::Contradicted);
+        assert!(entry.contradicted_claim.is_some());
+        // But confidence is upgraded to Direct (we're looking at them)
+        assert_eq!(entry.confidence, KnowledgeConfidence::Direct);
+    }
+
+    #[test]
+    fn no_contradiction_when_told_by_position_matches() {
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(1);
+        let informant = StableId(99);
+
+        // Told target is at (10, 10)
+        g.entities.insert(
+            target,
+            EntityKnowledge {
+                last_known_position: Some(make_position(10, 10)),
+                last_observed_tick: 0,
+                last_updated_tick: 100,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant,
+                    tick: 100,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        // Observe at SAME position — no contradiction
+        let result = g.observe_entity(target, make_position(10, 10), 200);
+        assert!(result.is_none(), "Same position should not be a contradiction");
+        let entry = g.entity_knowledge(&target).unwrap();
+        assert_eq!(entry.state, KnowledgeState::Active);
+        assert!(entry.contradicted_claim.is_none());
+    }
+
+    #[test]
+    fn no_contradiction_outside_time_window() {
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(1);
+        let informant = StableId(99);
+
+        // Told at tick 100, position (10, 10)
+        g.entities.insert(
+            target,
+            EntityKnowledge {
+                last_known_position: Some(make_position(10, 10)),
+                last_observed_tick: 0,
+                last_updated_tick: 100,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant,
+                    tick: 100,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        // Observe at different position BUT outside window (100 + 601 = 701)
+        let result = g.observe_entity(target, make_position(15, 10), 701);
+        assert!(
+            result.is_none(),
+            "Outside CONTRADICTION_WINDOW_TICKS should not trigger contradiction"
+        );
+    }
+
+    #[test]
+    fn contradiction_at_exact_window_boundary() {
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(1);
+        let informant = StableId(99);
+
+        g.entities.insert(
+            target,
+            EntityKnowledge {
+                last_known_position: Some(make_position(10, 10)),
+                last_observed_tick: 0,
+                last_updated_tick: 100,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant,
+                    tick: 100,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        // Exactly at window boundary: 100 + 600 = 700 (age == CONTRADICTION_WINDOW_TICKS)
+        let result = g.observe_entity(target, make_position(15, 10), 700);
+        assert!(
+            result.is_some(),
+            "Exactly at window boundary (age == 600) should still detect contradiction"
+        );
+    }
+
+    #[test]
+    fn no_contradiction_for_direct_observation_source() {
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(1);
+
+        // Previous knowledge from DirectObservation (not ToldBy)
+        g.observe_entity(target, make_position(10, 10), 100);
+
+        // New observation at different position — NOT a contradiction
+        // (we just moved, or they moved; no one lied)
+        let result = g.observe_entity(target, make_position(15, 10), 200);
+        assert!(
+            result.is_none(),
+            "DirectObservation source should never trigger contradiction"
+        );
+        let entry = g.entity_knowledge(&target).unwrap();
+        assert_eq!(entry.state, KnowledgeState::Active);
+    }
+
+    #[test]
+    fn no_contradiction_for_background_source() {
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(1);
+
+        // Background knowledge with a position
+        g.entities.insert(
+            target,
+            EntityKnowledge {
+                last_known_position: Some(make_position(10, 10)),
+                last_observed_tick: 0,
+                last_updated_tick: 0,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::Background,
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        let result = g.observe_entity(target, make_position(15, 10), 100);
+        assert!(
+            result.is_none(),
+            "Background source should not trigger contradiction"
+        );
+    }
+
+    #[test]
+    fn no_contradiction_when_told_by_has_no_position() {
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(1);
+        let informant = StableId(99);
+
+        // ToldBy but no position was claimed
+        g.entities.insert(
+            target,
+            EntityKnowledge {
+                last_known_position: None, // no position claimed
+                last_observed_tick: 0,
+                last_updated_tick: 100,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant,
+                    tick: 100,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        let result = g.observe_entity(target, make_position(15, 10), 200);
+        assert!(
+            result.is_none(),
+            "ToldBy without position should not trigger contradiction"
+        );
+    }
+
+    #[test]
+    fn contradicted_claim_entry_field_matches_returned_claim() {
+        // Verify that entry.contradicted_claim is populated with identical
+        // data to the ContradictionClaim returned by observe_entity (D-083).
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(1);
+        let informant = StableId(42);
+
+        g.entities.insert(
+            target,
+            EntityKnowledge {
+                last_known_position: Some(make_position(5, 5)),
+                last_observed_tick: 0,
+                last_updated_tick: 50,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant,
+                    tick: 50,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        let returned = g
+            .observe_entity(target, make_position(12, 5), 300)
+            .expect("contradiction should be detected");
+
+        let entry = g.entity_knowledge(&target).unwrap();
+        let stored = entry.contradicted_claim.as_ref().expect("field should be populated");
+
+        assert_eq!(stored.told_by, returned.told_by);
+        assert_eq!(stored.told_tick, returned.told_tick);
+        assert_eq!(stored.claimed_position, returned.claimed_position);
+        assert_eq!(stored.observed_position, returned.observed_position);
+        assert_eq!(stored.detected_tick, returned.detected_tick);
+    }
+
+    #[test]
+    fn second_observation_keeps_contradicted_state_when_no_new_told_by() {
+        // After a contradiction is detected, subsequent DirectObservation
+        // does NOT clear the Contradicted state (D-083: "unresolved").
+        let mut g = KnowledgeGraph::new();
+        let target = StableId(7);
+        let informant = StableId(8);
+
+        // Set up ToldBy knowledge
+        g.entities.insert(
+            target,
+            EntityKnowledge {
+                last_known_position: Some(make_position(3, 3)),
+                last_observed_tick: 0,
+                last_updated_tick: 10,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant,
+                    tick: 10,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        // First observation: contradiction detected
+        let claim = g.observe_entity(target, make_position(9, 3), 200);
+        assert!(claim.is_some(), "contradiction should fire");
+        assert_eq!(
+            g.entity_knowledge(&target).unwrap().state,
+            KnowledgeState::Contradicted
+        );
+
+        // Second observation (now source is DirectObservation, different position):
+        // state must stay Contradicted — contradiction is still unresolved.
+        let claim2 = g.observe_entity(target, make_position(11, 3), 300);
+        assert!(claim2.is_none(), "no new contradiction: DirectObservation source");
+        assert_eq!(
+            g.entity_knowledge(&target).unwrap().state,
+            KnowledgeState::Contradicted,
+            "Contradicted state must persist until explicitly resolved"
+        );
+    }
+
+    #[test]
+    fn multiple_entities_only_told_by_one_contradicts() {
+        // Edge case: observer knows two entities.
+        // Entity A has ToldBy source, Entity B has DirectObservation.
+        // Only Entity A should produce a contradiction.
+        let mut g = KnowledgeGraph::new();
+        let entity_a = StableId(10);
+        let entity_b = StableId(20);
+        let informant = StableId(99);
+
+        // Entity A: ToldBy with position
+        g.entities.insert(
+            entity_a,
+            EntityKnowledge {
+                last_known_position: Some(make_position(1, 1)),
+                last_observed_tick: 0,
+                last_updated_tick: 100,
+                confidence: KnowledgeConfidence::KnowsOf,
+                source: KnowledgeSource::ToldBy {
+                    source_id: informant,
+                    tick: 100,
+                },
+                state: KnowledgeState::Active,
+                relationship: RelationshipState::Known,
+                known_attributes: BTreeMap::new(),
+                contradicted_claim: None,
+            },
+        );
+
+        // Entity B: DirectObservation (no informant to lie)
+        g.observe_entity(entity_b, make_position(5, 5), 100);
+
+        // Observe both at different positions at tick 200
+        let a_result = g.observe_entity(entity_a, make_position(8, 1), 200);
+        let b_result = g.observe_entity(entity_b, make_position(9, 5), 200);
+
+        assert!(a_result.is_some(), "Entity A (ToldBy source) should contradict");
+        assert!(b_result.is_none(), "Entity B (DirectObservation) should not contradict");
+        assert_eq!(
+            g.entity_knowledge(&entity_a).unwrap().state,
+            KnowledgeState::Contradicted
+        );
+        assert_eq!(
+            g.entity_knowledge(&entity_b).unwrap().state,
+            KnowledgeState::Active
+        );
+    }
 }
diff --git a/server/src/knowledge/mod.rs b/server/src/knowledge/mod.rs
index 2f9f8ffba..281e92ee0 100644
--- a/server/src/knowledge/mod.rs
+++ b/server/src/knowledge/mod.rs
@@ -7,12 +7,18 @@
 use bevy_app::prelude::*;
 use bevy_ecs::prelude::*;
 
+pub mod content_registry;
 pub mod events;
 pub mod graph;
 pub mod registry;
 pub mod types;
 
-pub use events::{InteractionType, KnowledgeEvent, KnowledgeEventQueue, KnowledgeEventType};
+pub use content_registry::ContentEntityRegistry;
+pub use events::{
+    ContradictionDetectedEvent, ContradictionDetectedQueue, InteractionType, KnowledgeEvent,
+    KnowledgeEventQueue, KnowledgeEventType, ProcessedEntityGrant, ProcessedFactGrant,
+    ProcessedKnowledgeGrant,
+};
 pub use graph::KnowledgeGraph;
 pub use registry::{EntityRegistry, StableEntityId};
 pub use types::*;
@@ -24,7 +30,9 @@ pub struct KnowledgePlugin;
 impl Plugin for KnowledgePlugin {
     fn build(&self, app: &mut App) {
         app.init_resource::<KnowledgeEventQueue>()
+            .init_resource::<ContradictionDetectedQueue>()
             .init_resource::<EntityRegistry>()
+            .init_resource::<ContentEntityRegistry>()
             .init_resource::<DecayThresholds>()
             .add_systems(
                 Update,
diff --git a/server/src/knowledge/types.rs b/server/src/knowledge/types.rs
index 77315be3d..76bed1018 100644
--- a/server/src/knowledge/types.rs
+++ b/server/src/knowledge/types.rs
@@ -54,6 +54,27 @@ const _: () = {
     assert!(KnowledgeConfidence::Direct as u8 == 3);
 };
 
+impl TryFrom<&str> for KnowledgeConfidence {
+    type Error = String;
+
+    /// Parse a confidence string from YAML content into the typed enum.
+    ///
+    /// Case-insensitive. Accepts both camelCase and underscore/hyphen variants.
+    /// Used by KnowledgeGrant processing (D-079).
+    fn try_from(s: &str) -> Result<Self, Self::Error> {
+        match s.to_lowercase().as_str() {
+            "suspects" => Ok(Self::Suspects),
+            "knowsof" | "knows_of" | "knows-of" => Ok(Self::KnowsOf),
+            "knowsdetails" | "knows_details" | "knows-details" => Ok(Self::KnowsDetails),
+            "direct" => Ok(Self::Direct),
+            other => Err(format!(
+                "unknown confidence level '{}': expected one of suspects, knowsof, knowsdetails, direct",
+                other
+            )),
+        }
+    }
+}
+
 impl KnowledgeConfidence {
     /// Step down one confidence level (used by decay system).
     pub fn decayed(self) -> Self {
@@ -146,6 +167,33 @@ impl RelationshipState {
     }
 }
 
+// --- Contradiction Detection (D-083) ---
+
+/// Ticks within which a position discrepancy counts as a contradiction.
+/// 600 ticks = 1 game-hour (at 10 tps per D-031).
+/// Outside this window, stale ToldBy information is simply overwritten.
+pub const CONTRADICTION_WINDOW_TICKS: u64 = 600;
+
+/// Records details of a detected contradiction on an EntityKnowledge entry.
+///
+/// Populated when `observe_entity()` finds a position discrepancy with a
+/// recent `ToldBy` source. Both the ToldBy entry and the DirectObservation
+/// receive `Contradicted` state (epistemic neutrality — the engine does
+/// not determine which is wrong). D-083, Q-026 resolution.
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct ContradictionClaim {
+    /// Who told us the (now-contradicted) information.
+    pub told_by: StableId,
+    /// Tick when the ToldBy information was received.
+    pub told_tick: u64,
+    /// Position the source claimed the entity was at.
+    pub claimed_position: TilePosition,
+    /// Position we directly observed the entity at.
+    pub observed_position: TilePosition,
+    /// Tick when the contradiction was detected.
+    pub detected_tick: u64,
+}
+
 // --- Entity Knowledge ---
 
 /// What entity A knows about entity B.
@@ -169,6 +217,10 @@ pub struct EntityKnowledge {
     /// Known attributes of the target entity.
     /// Keys are structured (name, role, faction, etc.)
     pub known_attributes: BTreeMap<String, String>,
+    /// Populated when a contradiction is detected between ToldBy and
+    /// DirectObservation sources (D-083). None when no contradiction exists.
+    #[serde(default, skip_serializing_if = "Option::is_none")]
+    pub contradicted_claim: Option<ContradictionClaim>,
 }
 
 /// Non-entity fact knowledge (locations, events, abstract knowledge).
@@ -183,6 +235,10 @@ pub struct FactKnowledge {
     pub state: KnowledgeState,
     /// Tick when this fact was learned.
     pub acquired_tick: u64,
+    /// When true, this fact must not be transferred to other entities via NPC-to-NPC propagation.
+    /// D-080: models secrets whose sharing is existentially dangerous regardless of trust tier.
+    #[serde(default)]
+    pub disclosure_blocked: bool,
 }
 
 // --- Decay Configuration ---
diff --git a/server/src/perception/interpretation.rs b/server/src/perception/interpretation.rs
index b71ce5671..8ea8ef2f0 100644
--- a/server/src/perception/interpretation.rs
+++ b/server/src/perception/interpretation.rs
@@ -208,6 +208,7 @@ mod tests {
         world.insert_resource(WalkabilityMap::new(32, 32, 1));
         world.init_resource::<SnapshotBuffer>();
         world.init_resource::<crate::knowledge::KnowledgeEventQueue>();
+        world.init_resource::<crate::knowledge::ContradictionDetectedQueue>();
         world.init_resource::<EntityRegistry>();
         world.init_resource::<ObservationEventQueue>();
         world.init_resource::<VisibilityGeometry>();
diff --git a/server/src/perception/observer/tests.rs b/server/src/perception/observer/tests.rs
index c397cd166..af16f5259 100644
--- a/server/src/perception/observer/tests.rs
+++ b/server/src/perception/observer/tests.rs
@@ -505,6 +505,7 @@ fn knowledge_without_position_not_shown() {
             state: crate::knowledge::KnowledgeState::Active,
             relationship: RelationshipState::PersonOfInterest,
             known_attributes: std::collections::BTreeMap::new(),
+            contradicted_claim: None,
         },
     );
 
@@ -800,6 +801,7 @@ fn phase2_no_confront_without_knows_details() {
             state: KnowledgeState::Active,
             relationship: RelationshipState::Unknown,
             known_attributes: std::collections::BTreeMap::new(),
+            contradicted_claim: None,
         },
     );
 
@@ -2271,6 +2273,7 @@ fn access_rule_knowledge_gated_passes_with_matching_fact() {
             source: KnowledgeSource::Background,
             state: KnowledgeState::Active,
             acquired_tick: 0,
+            disclosure_blocked: false,
         },
     );
 
diff --git a/server/src/simulation/contraband.rs b/server/src/simulation/contraband.rs
index a772b6b45..24fda918c 100644
--- a/server/src/simulation/contraband.rs
+++ b/server/src/simulation/contraband.rs
@@ -127,6 +127,7 @@ pub fn check_contraband_scan(
                         source: KnowledgeSource::DirectObservation { tick: time.tick },
                         state: KnowledgeState::Active,
                         acquired_tick: time.tick,
+                        disclosure_blocked: false,
                     },
                 );
 
@@ -463,6 +464,7 @@ mod tests {
                 source: KnowledgeSource::DirectObservation { tick: 0 },
                 state: KnowledgeState::Active,
                 acquired_tick: 0,
+                disclosure_blocked: false,
             },
         );
 
diff --git a/server/src/simulation/dialogue.rs b/server/src/simulation/dialogue.rs
index 0a6b6cd42..2f87facd3 100644
--- a/server/src/simulation/dialogue.rs
+++ b/server/src/simulation/dialogue.rs
@@ -25,7 +25,11 @@ use crate::simulation::conversation::{display_label_for_role, NpcColorIndex, Npc
 use crate::content::line_pool::{
     AccessTier, IndexedDialogueLine, Mood, Situation, Topic, TrustTier,
 };
+use crate::content::types::KnowledgeGrant;
 use crate::content::LinePoolIndexResource;
+use crate::knowledge::content_registry::ContentEntityRegistry;
+use crate::knowledge::events::{ProcessedEntityGrant, ProcessedFactGrant, ProcessedKnowledgeGrant};
+use crate::knowledge::types::{FactId, KnowledgeConfidence, KnowledgeSource, StableId};
 use crate::knowledge::{EntityRegistry, KnowledgeGraph};
 use crate::npc::interaction::{InteractionEvent, InteractionEventKind, InteractionMemory};
 use crate::npc::relationships::{TrustEvent, TrustEventQueue};
@@ -422,6 +426,7 @@ pub fn process_talk_interaction(
     time: Res<SimulationTime>,
     line_pool: Option<Res<LinePoolIndexResource>>,
     registry: Res<EntityRegistry>,
+    content_registry: Res<ContentEntityRegistry>,
     mut rng: ResMut<SimRng>,
     mut event_queue: ResMut<crate::knowledge::KnowledgeEventQueue>,
     mut trust_queue: ResMut<TrustEventQueue>,
@@ -442,6 +447,7 @@ pub fn process_talk_interaction(
         Option<&mut InteractionMemory>,
         Option<&NpcName>,
         Option<&NpcColorIndex>,
+        Option<&KnowledgeGraph>,
     )>,
 ) {
     let Some(line_pool) = line_pool else {
@@ -462,8 +468,8 @@ pub fn process_talk_interaction(
 
     let target = talk_request.target;
 
-    // Look up NPC dialogue profile, mood, interaction history, name, and color (#325)
-    let Ok((profile, mood_opt, mut interaction_mem_opt, npc_name_opt, color_idx_opt)) =
+    // Look up NPC dialogue profile, mood, interaction history, name, color, and KG (#325, D-079)
+    let Ok((profile, mood_opt, mut interaction_mem_opt, npc_name_opt, color_idx_opt, npc_kg_opt)) =
         npc_query.get_mut(target)
     else {
         tracing::debug!(
@@ -541,6 +547,19 @@ pub fn process_talk_interaction(
 
         cooldown.record(&line.id, time.tick);
 
+        // Knowledge grant (D-079): fire at line selection time, server-authoritative.
+        if let Some(grant) = &line.knowledge_grant {
+            emit_knowledge_grant(
+                grant,
+                player_entity,
+                speaker_stable,
+                &content_registry,
+                npc_kg_opt,
+                time.tick,
+                &mut event_queue,
+            );
+        }
+
         // Emit IncompleteInteraction if overwriting an existing dialogue session
         if let Some(prev) = active_dialogue_opt {
             event_queue.push(crate::knowledge::KnowledgeEvent {
@@ -594,6 +613,102 @@ pub fn process_talk_interaction(
     commands.entity(player_entity).remove::<TalkRequest>();
 }
 
+// ---------------------------------------------------------------------------
+// Knowledge grant helper (D-079)
+// ---------------------------------------------------------------------------
+
+/// Emit a KnowledgeGranted event for a dialogue line's knowledge_grant field.
+///
+/// Called at line selection time (server-authoritative, tick-stamped).
+/// Source is always `ToldBy { source_id: speaker_stable, tick }`.
+///
+/// Fact grants: dropped with tracing::warn! if the granting NPC's KG
+/// does not contain the fact (D-079 runtime guardrail).
+/// Entity grants: no guardrail — always emitted if entity_ref resolves.
+#[allow(clippy::too_many_arguments)]
+fn emit_knowledge_grant(
+    grant: &KnowledgeGrant,
+    player_entity: Entity,
+    speaker_stable: StableId,
+    content_registry: &ContentEntityRegistry,
+    npc_kg_opt: Option<&KnowledgeGraph>,
+    tick: u64,
+    event_queue: &mut crate::knowledge::KnowledgeEventQueue,
+) {
+    let source = KnowledgeSource::ToldBy {
+        source_id: speaker_stable,
+        tick,
+    };
+
+    match grant {
+        KnowledgeGrant::Fact { fact_id, confidence } => {
+            let conf = match KnowledgeConfidence::try_from(confidence.as_str()) {
+                Ok(c) => c,
+                Err(e) => {
+                    tracing::warn!("KnowledgeGrant confidence parse error: {}", e);
+                    return;
+                }
+            };
+            let fid = FactId(fact_id.clone());
+            // Guardrail: NPC must know this fact to grant it (D-079).
+            let npc_knows = npc_kg_opt
+                .map(|kg| kg.knows_fact(&fid))
+                .unwrap_or(false);
+            if !npc_knows {
+                tracing::warn!(
+                    "KnowledgeGrant dropped: NPC {:?} does not know fact '{}' — grant guardrail",
+                    speaker_stable,
+                    fact_id
+                );
+                return;
+            }
+            event_queue.push(crate::knowledge::KnowledgeEvent {
+                observer: player_entity,
+                tick,
+                event_type: crate::knowledge::KnowledgeEventType::KnowledgeGranted {
+                    grant: ProcessedKnowledgeGrant::Fact(ProcessedFactGrant {
+                        fact_id: fid,
+                        confidence: conf,
+                    }),
+                    source,
+                },
+            });
+        }
+        KnowledgeGrant::Entity {
+            entity_ref,
+            attributes,
+            confidence,
+        } => {
+            let conf = match KnowledgeConfidence::try_from(confidence.as_str()) {
+                Ok(c) => c,
+                Err(e) => {
+                    tracing::warn!("KnowledgeGrant confidence parse error: {}", e);
+                    return;
+                }
+            };
+            let Some(target_id) = content_registry.resolve(entity_ref) else {
+                tracing::warn!(
+                    "KnowledgeGrant::Entity dropped: entity_ref '{}' not in ContentEntityRegistry",
+                    entity_ref
+                );
+                return;
+            };
+            event_queue.push(crate::knowledge::KnowledgeEvent {
+                observer: player_entity,
+                tick,
+                event_type: crate::knowledge::KnowledgeEventType::KnowledgeGranted {
+                    grant: ProcessedKnowledgeGrant::Entity(ProcessedEntityGrant {
+                        target_id,
+                        attributes: attributes.clone(),
+                        confidence: conf,
+                    }),
+                    source,
+                },
+            });
+        }
+    }
+}
+
 // ---------------------------------------------------------------------------
 // System: process_walk_away (D-064)
 // ---------------------------------------------------------------------------
@@ -1330,6 +1445,7 @@ mod tests {
         world.init_resource::<SimulationTime>();
         world.insert_resource(SimRng::new(42));
         world.init_resource::<EntityRegistry>();
+        world.init_resource::<ContentEntityRegistry>();
         world.init_resource::<crate::knowledge::KnowledgeEventQueue>();
         world.init_resource::<TrustEventQueue>();
         world.init_resource::<crate::simulation::monologue::PostConversationQueue>();
@@ -1828,6 +1944,7 @@ mod tests {
 
         let mut world = setup_dialogue_world();
         world.init_resource::<KnowledgeEventQueue>();
+        world.init_resource::<crate::knowledge::ContradictionDetectedQueue>();
 
         let npc = world.spawn_empty().id();
         let npc_sid = world.resource_mut::<EntityRegistry>().register(npc);
diff --git a/server/tests/content_loading.rs b/server/tests/content_loading.rs
index cec058f99..bedfbd9bf 100644
--- a/server/tests/content_loading.rs
+++ b/server/tests/content_loading.rs
@@ -214,6 +214,7 @@ fn verify_template_role_slots() {
 fn spawn_npc_from_content_store() {
     let mut world = World::new();
     world.init_resource::<EntityRegistry>();
+    world.init_resource::<settled_reach_server::knowledge::ContentEntityRegistry>();
 
     // Create a minimal content store with one test NPC
     let mut store = ContentStore::default();
@@ -333,6 +334,7 @@ fn spawn_real_content_with_relationships_and_secrets() {
 
     let mut world = World::new();
     world.init_resource::<EntityRegistry>();
+    world.init_resource::<settled_reach_server::knowledge::ContentEntityRegistry>();
     world.init_resource::<settled_reach_server::npc::relationships::RelationshipGraph>();
 
     let store = load_content(&root).expect("content loading should succeed");