diff --git a/prompt_forge/api/proposals.py b/prompt_forge/api/proposals.py
new file mode 100644
index 0000000..56c2f90
--- /dev/null
+++ b/prompt_forge/api/proposals.py
@@ -0,0 +1,80 @@
+"""Refinement proposals endpoints."""
+
+from __future__ import annotations
+
+
+from fastapi import APIRouter, Depends, HTTPException
+from pydantic import BaseModel
+
+from prompt_forge.core.registry import PromptRegistry, get_registry
+from prompt_forge.core.vcs import VersionControl, get_vcs
+from prompt_forge.db.client import SupabaseClient, get_supabase_client
+
+router = APIRouter()
+
+
+class ProposalResponse(BaseModel):
+    """Refinement proposal response."""
+    
+    branch_name: str
+    created_at: str
+    target_section: str | None = None
+    source_patterns: list[str] = []
+
+
+@router.get("/{slug}/proposals", response_model=list[ProposalResponse])
+async def list_refinement_proposals(
+    slug: str,
+    registry: PromptRegistry = Depends(get_registry),
+    vcs: VersionControl = Depends(get_vcs),
+    db: SupabaseClient = Depends(get_supabase_client),
+) -> list[ProposalResponse]:
+    """List pending refinement branches for a prompt.
+    
+    Returns branches with name prefix 'refinement/' and status 'active'.
+    """
+    prompt = registry.get_prompt(slug)
+    if not prompt:
+        raise HTTPException(status_code=404, detail=f"Prompt '{slug}' not found")
+    
+    prompt_id = str(prompt["id"])
+    
+    # Get all active branches for this prompt
+    all_branches = vcs.list_branches(prompt_id)
+    
+    # Filter for refinement branches with active status
+    refinement_branches = [
+        branch for branch in all_branches
+        if branch["name"].startswith("refinement/") and branch["status"] == "active"
+    ]
+    
+    proposals = []
+    for branch in refinement_branches:
+        # Extract target section from branch name (refinement/{section}/{timestamp})
+        name_parts = branch["name"].split("/")
+        target_section = name_parts[1] if len(name_parts) >= 2 else None
+        
+        # Try to get source patterns from metadata (optional)
+        source_patterns = []
+        try:
+            metadata_rows = db.select(
+                "refinement_proposals", 
+                filters={"branch_id": branch["id"]}
+            )
+            if metadata_rows:
+                source_patterns = metadata_rows[0].get("source_patterns", [])
+        except Exception:
+            # Table might not exist or have different structure
+            pass
+        
+        proposals.append(ProposalResponse(
+            branch_name=branch["name"],
+            created_at=branch["created_at"],
+            target_section=target_section,
+            source_patterns=source_patterns,
+        ))
+    
+    # Sort by creation time (newest first)
+    proposals.sort(key=lambda p: p.created_at, reverse=True)
+    
+    return proposals
diff --git a/prompt_forge/api/router.py b/prompt_forge/api/router.py
index 632eb29..589c22a 100644
--- a/prompt_forge/api/router.py
+++ b/prompt_forge/api/router.py
@@ -10,6 +10,7 @@
 from prompt_forge.api.effectiveness import router as effectiveness_router
 from prompt_forge.api.persona_prompts import router as persona_prompts_router
 from prompt_forge.api.prompts import router as prompts_router
+from prompt_forge.api.proposals import router as proposals_router
 from prompt_forge.api.scan import router as scan_router
 from prompt_forge.api.subscriptions import router as subscriptions_router
 from prompt_forge.api.usage import router as usage_router
@@ -20,6 +21,7 @@
 api_router.include_router(prompts_router, prefix="/prompts", tags=["prompts"])
 api_router.include_router(versions_router, prefix="/prompts", tags=["versions"])
 api_router.include_router(branches_router, prefix="/prompts", tags=["branches"])
+api_router.include_router(proposals_router, prefix="/prompts", tags=["proposals"])
 api_router.include_router(subscriptions_router, prefix="/prompts", tags=["subscriptions"])
 api_router.include_router(
     persona_prompts_router, prefix="/persona-prompts", tags=["persona-prompts"]
diff --git a/prompt_forge/core/refinement/__init__.py b/prompt_forge/core/refinement/__init__.py
new file mode 100644
index 0000000..33b0f5d
--- /dev/null
+++ b/prompt_forge/core/refinement/__init__.py
@@ -0,0 +1 @@
+"""Refinement processing module."""
diff --git a/prompt_forge/core/refinement/consumer.py b/prompt_forge/core/refinement/consumer.py
new file mode 100644
index 0000000..78abb43
--- /dev/null
+++ b/prompt_forge/core/refinement/consumer.py
@@ -0,0 +1,260 @@
+"""NATS subscriber for refinement proposals.
+
+Listens to:
+- pattern.refinement.proposed — creates refinement branches with proposed changes
+"""
+
+from __future__ import annotations
+
+import json
+import os
+from datetime import datetime, timezone
+
+import structlog
+
+logger = structlog.get_logger()
+
+_nats_available = False
+try:
+    import nats as nats_lib
+
+    _nats_available = True
+except ImportError:
+    pass
+
+
+class RefinementConsumer:
+    """Subscribes to NATS refinement events and creates refinement branches."""
+
+    def __init__(self, nats_url: str = "nats://localhost:4222") -> None:
+        self.nats_url = nats_url
+        self._nc = None
+        self._subs = []
+        self._connected = False
+
+    async def connect(self) -> bool:
+        """Connect to NATS. Returns True if successful."""
+        if not _nats_available:
+            logger.info("refinement_consumer.nats_not_installed")
+            return False
+        try:
+            self._nc = await nats_lib.connect(self.nats_url)
+            self._connected = True
+            logger.info("refinement_consumer.connected", url=self.nats_url)
+            return True
+        except Exception as e:
+            logger.warning("refinement_consumer.connect_failed", error=str(e))
+            return False
+
+    async def start(self) -> None:
+        """Start consuming refinement events."""
+        if not self._connected:
+            return
+
+        sub = await self._nc.subscribe("pattern.refinement.proposed", cb=self._handle_refinement_proposed)
+        self._subs = [sub]
+        logger.info(
+            "refinement_consumer.started",
+            subjects=["pattern.refinement.proposed"],
+        )
+
+    async def stop(self) -> None:
+        """Stop consuming and disconnect."""
+        for sub in self._subs:
+            try:
+                await sub.unsubscribe()
+            except Exception:
+                pass
+        if self._nc and self._connected:
+            try:
+                await self._nc.close()
+            except Exception:
+                pass
+        self._connected = False
+        logger.info("refinement_consumer.stopped")
+
+    async def _handle_refinement_proposed(self, msg) -> None:
+        """Handle pattern.refinement.proposed event.
+        
+        Expected event data:
+        {
+          "target_slug": "kai-soul",
+          "section": "reasoning",
+          "proposed_change": "Updated reasoning instructions...",
+          "source_patterns": ["dredd-pattern-1", "dredd-pattern-2"]
+        }
+        """
+        try:
+            payload = json.loads(msg.data.decode())
+            data = payload.get("data", payload)
+            
+            target_slug = data.get("target_slug")
+            section = data.get("section")
+            proposed_change = data.get("proposed_change")
+            source_patterns = data.get("source_patterns", [])
+            
+            if not target_slug or not section or not proposed_change:
+                logger.warning("refinement_consumer.incomplete_event", data=data)
+                return
+
+            await self._create_refinement_branch(
+                target_slug, section, proposed_change, source_patterns, payload
+            )
+            
+        except Exception as e:
+            logger.warning("refinement_consumer.handle_error", error=str(e))
+
+    async def _create_refinement_branch(
+        self, 
+        target_slug: str, 
+        section: str, 
+        proposed_change: str, 
+        source_patterns: list[str],
+        event_payload: dict
+    ) -> None:
+        """Create a refinement branch with the proposed change."""
+        try:
+            from prompt_forge.core.registry import get_registry
+            from prompt_forge.core.vcs import get_vcs
+            
+            registry = get_registry()
+            vcs = get_vcs()
+            
+            # 1. Look up the target prompt by slug
+            prompt = registry.get_prompt(target_slug)
+            if not prompt:
+                logger.warning("refinement_consumer.prompt_not_found", slug=target_slug)
+                return
+            
+            prompt_id = str(prompt["id"])
+            
+            # 2. Get latest version to base the change on
+            latest_versions = vcs.history(prompt_id, "main", limit=1)
+            latest_version = latest_versions[0] if latest_versions else None
+            if not latest_version:
+                logger.warning("refinement_consumer.no_versions", slug=target_slug)
+                return
+            
+            # 3. Create branch name with timestamp
+            timestamp = datetime.now(timezone.utc).strftime("%Y%m%d_%H%M%S")
+            branch_name = f"refinement/{section}/{timestamp}"
+            
+            # 4. Create the branch from latest version
+            branch = vcs.create_branch(
+                prompt_id=prompt_id,
+                branch_name=branch_name,
+                from_branch="main"
+            )
+            
+            # 5. Apply the proposed change to the target section
+            current_content = latest_version["content"]
+            updated_content = self._apply_section_change(
+                current_content, section, proposed_change
+            )
+            
+            # 6. Create new version on the branch with the change
+            commit_message = f"Refinement proposal for {section} section"
+            if source_patterns:
+                commit_message += f" (from: {', '.join(source_patterns)})"
+            
+            vcs.commit(
+                prompt_id=prompt_id,
+                content=updated_content,
+                message=commit_message,
+                author="refinement-system",
+                branch=branch_name,
+            )
+            
+            # 7. Store metadata about the proposal
+            await self._store_proposal_metadata(
+                branch["id"], source_patterns, event_payload
+            )
+            
+            logger.info(
+                "refinement_consumer.branch_created",
+                slug=target_slug,
+                branch=branch_name,
+                section=section,
+                patterns=source_patterns,
+            )
+            
+        except Exception as e:
+            logger.warning(
+                "refinement_consumer.create_branch_error",
+                slug=target_slug,
+                section=section,
+                error=str(e)
+            )
+
+    def _apply_section_change(
+        self, content: dict, section_name: str, proposed_change: str
+    ) -> dict:
+        """Apply the proposed change to the specified section."""
+        updated_content = dict(content)
+        sections = updated_content.get("sections", [])
+        
+        # Find and update the target section
+        updated_sections = []
+        section_found = False
+        
+        for section in sections:
+            if section.get("id") == section_name or section.get("name") == section_name:
+                # Update this section with the proposed change
+                updated_section = dict(section)
+                updated_section["content"] = proposed_change
+                updated_sections.append(updated_section)
+                section_found = True
+            else:
+                updated_sections.append(section)
+        
+        # If section doesn't exist, create it
+        if not section_found:
+            new_section = {
+                "id": section_name,
+                "name": section_name.replace("_", " ").title(),
+                "content": proposed_change
+            }
+            updated_sections.append(new_section)
+        
+        updated_content["sections"] = updated_sections
+        return updated_content
+
+    async def _store_proposal_metadata(
+        self, branch_id: str, source_patterns: list[str], event_payload: dict
+    ) -> None:
+        """Store metadata about the refinement proposal."""
+        try:
+            from prompt_forge.db.client import get_supabase_client
+            
+            db = get_supabase_client()
+            
+            # Store in a refinement_proposals table (if it exists)
+            # This is optional - the briefing doesn't require a specific table
+            metadata = {
+                "branch_id": branch_id,
+                "source_patterns": source_patterns,
+                "event_payload": event_payload,
+                "created_at": datetime.now(timezone.utc).isoformat(),
+            }
+            
+            # Try to store, but don't fail if table doesn't exist
+            try:
+                db.insert("refinement_proposals", metadata)
+            except Exception:
+                # Table might not exist, which is fine
+                pass
+                
+        except Exception as e:
+            logger.debug("refinement_consumer.metadata_store_error", error=str(e))
+
+
+_consumer: RefinementConsumer | None = None
+
+
+def get_refinement_consumer() -> RefinementConsumer:
+    """Get the global refinement consumer (lazy init)."""
+    global _consumer
+    if _consumer is None:
+        nats_url = os.getenv("NATS_URL", "nats://localhost:4222")
+        _consumer = RefinementConsumer(nats_url)
+    return _consumer
diff --git a/prompt_forge/main.py b/prompt_forge/main.py
index 0fa4033..a2befe7 100644
--- a/prompt_forge/main.py
+++ b/prompt_forge/main.py
@@ -72,6 +72,16 @@ async def lifespan(app: FastAPI):
     except Exception as e:
         logger.info("promptforge.subscribers_skipped", reason=str(e))
 
+    # Initialize NATS refinement consumer (optional)
+    try:
+        from prompt_forge.core.refinement.consumer import get_refinement_consumer
+
+        consumer = get_refinement_consumer()
+        if await consumer.connect():
+            await consumer.start()
+    except Exception as e:
+        logger.info("promptforge.refinement_consumer_skipped", reason=str(e))
+
     # Start TTL cleanup background task
     _cleanup_task = asyncio.create_task(subscription_ttl_cleanup())
 
@@ -111,6 +121,15 @@ async def lifespan(app: FastAPI):
     except Exception:
         pass
 
+    # Disconnect NATS refinement consumer
+    try:
+        from prompt_forge.core.refinement.consumer import get_refinement_consumer
+
+        consumer = get_refinement_consumer()
+        await consumer.stop()
+    except Exception:
+        pass
+
     # Disconnect NATS
     try:
         from prompt_forge.core.events import get_event_publisher