diff --git a/README.md b/README.md
index cce98d7f..2747f4d4 100644
--- a/README.md
+++ b/README.md
@@ -29,7 +29,7 @@ A powerful, extensible AI coding agent CLI with multi-provider support, built-in
 - **Session Management**: Tree-based conversation history with branching support
 - **Non-Interactive Mode**: Script-friendly positional args with JSON output
 - **ACP Server**: Run Kit as an [Agent Client Protocol](https://agentclientprotocol.com) agent over stdio
-- **Go SDK**: Embed Kit in your own applications
+- **Go SDK**: Embed Kit in your own applications with full agent lifecycle events (30+ event types) and behavior-modifying hooks
 
 ## Installation
 
@@ -684,7 +684,7 @@ unsub2 := host.OnToolResult(func(e kit.ToolResultEvent) {
 })
 defer unsub2()
 
-unsub3 := host.OnStreaming(func(e kit.MessageUpdateEvent) {
+unsub3 := host.OnMessageUpdate(func(e kit.MessageUpdateEvent) {
     print(e.Chunk)
 })
 defer unsub3()
diff --git a/examples/sdk/basic/main.go b/examples/sdk/basic/main.go
index 7b70d25f..48da2583 100644
--- a/examples/sdk/basic/main.go
+++ b/examples/sdk/basic/main.go
@@ -62,7 +62,7 @@ func main() {
 		}
 	})
 	// Subscribe to streaming chunks.
-	host3.OnStreaming(func(e kit.MessageUpdateEvent) {
+	host3.OnMessageUpdate(func(e kit.MessageUpdateEvent) {
 		fmt.Print(e.Chunk)
 	})
 
diff --git a/internal/agent/agent.go b/internal/agent/agent.go
index 1da108d5..c059d5b1 100644
--- a/internal/agent/agent.go
+++ b/internal/agent/agent.go
@@ -6,6 +6,7 @@ import (
 	"fmt"
 	"io"
 	"strings"
+	"time"
 
 	"charm.land/fantasy"
 
@@ -126,6 +127,76 @@ type StepMessagesHandler func(stepMessages []fantasy.Message)
 // tracking during long-running tool-calling conversations.
 type StepUsageHandler func(inputTokens, outputTokens, cacheReadTokens, cacheCreationTokens int64)
 
+// StepStartHandler is called when a new LLM step begins within a turn.
+type StepStartHandler func(stepNumber int)
+
+// StepFinishHandler is called when a step completes with full context.
+type StepFinishHandler func(stepNumber int, hasToolCalls bool, finishReason string, usage fantasy.Usage)
+
+// TextStartHandler is called when the LLM begins generating text content.
+type TextStartHandler func(id string)
+
+// TextEndHandler is called when the LLM finishes generating text content.
+type TextEndHandler func(id string)
+
+// ReasoningStartHandler is called when the LLM begins reasoning/thinking.
+type ReasoningStartHandler func(id string)
+
+// WarningsHandler is called when the LLM provider returns warnings.
+type WarningsHandler func(warnings []string)
+
+// SourceHandler is called when the LLM references a source.
+type SourceHandler func(sourceType, id, url, title string)
+
+// StreamFinishHandler is called when a per-step LLM stream completes.
+type StreamFinishHandler func(usage fantasy.Usage, finishReason string)
+
+// ErrorHandler is called when an agent-level error occurs.
+type ErrorHandler func(err error)
+
+// RetryHandler is called when the LLM request is retried.
+type RetryHandler func(attempt int, err error)
+
+// PrepareStepHandler is called between steps to allow message modification.
+// It receives the step number and current messages, and returns replacement
+// messages (or nil to keep unchanged).
+type PrepareStepHandler func(stepNumber int, messages []fantasy.Message) []fantasy.Message
+
+// GenerateCallbacks consolidates all callback functions for
+// GenerateWithLoopAndStreaming into a single struct. This replaces the previous
+// 16+ positional callback parameters, making it easier to add new callbacks
+// without breaking existing callers (new fields default to nil).
+type GenerateCallbacks struct {
+	OnToolCall          ToolCallHandler
+	OnToolExecution     ToolExecutionHandler
+	OnToolResult        ToolResultHandler
+	OnResponse          ResponseHandler
+	OnToolCallContent   ToolCallContentHandler
+	OnStreamingResponse StreamingResponseHandler
+	OnReasoningDelta    ReasoningDeltaHandler
+	OnReasoningComplete ReasoningCompleteHandler
+	OnToolOutput        ToolOutputHandler
+	OnStepMessages      StepMessagesHandler
+	OnStepUsage         StepUsageHandler
+	OnPasswordPrompt    PasswordPromptHandler
+	OnToolCallStart     ToolCallStartHandler
+	OnToolCallDelta     ToolCallDeltaHandler
+	OnToolCallEnd       ToolCallEndHandler
+
+	// New callbacks for previously unwired Fantasy lifecycle events.
+	OnStepStart      StepStartHandler
+	OnStepFinish     StepFinishHandler
+	OnTextStart      TextStartHandler
+	OnTextEnd        TextEndHandler
+	OnReasoningStart ReasoningStartHandler
+	OnWarnings       WarningsHandler
+	OnSource         SourceHandler
+	OnStreamFinish   StreamFinishHandler
+	OnError          ErrorHandler
+	OnRetry          RetryHandler
+	OnPrepareStep    PrepareStepHandler
+}
+
 // Agent represents an AI agent with core tool integration using the LLM library.
 // Core tools (bash, read, write, edit, grep, find, ls) are registered as direct
 // AgentTool implementations — no MCP layer, no serialization overhead.
@@ -423,13 +494,20 @@ func (a *Agent) GenerateWithLoop(ctx context.Context, messages []fantasy.Message
 	onToolCall ToolCallHandler, onToolExecution ToolExecutionHandler, onToolResult ToolResultHandler,
 	onResponse ResponseHandler, onToolCallContent ToolCallContentHandler,
 ) (*GenerateWithLoopResult, error) {
-	return a.GenerateWithLoopAndStreaming(ctx, messages, onToolCall, onToolExecution, onToolResult,
-		onResponse, onToolCallContent, nil, nil, nil, nil, nil, nil, nil, nil, nil, nil)
+	return a.GenerateWithCallbacks(ctx, messages, GenerateCallbacks{
+		OnToolCall:        onToolCall,
+		OnToolExecution:   onToolExecution,
+		OnToolResult:      onToolResult,
+		OnResponse:        onResponse,
+		OnToolCallContent: onToolCallContent,
+	})
 }
 
 // GenerateWithLoopAndStreaming processes messages using the agent with streaming and callbacks.
-// The agent handles the tool call loop internally. We map the rich callback system
-// to kit's existing callback interface for UI integration.
+// The agent handles the tool call loop internally.
+//
+// Deprecated: Use GenerateWithCallbacks instead, which takes a GenerateCallbacks
+// struct and is easier to extend with new callbacks.
 func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fantasy.Message,
 	onToolCall ToolCallHandler, onToolExecution ToolExecutionHandler, onToolResult ToolResultHandler,
 	onResponse ResponseHandler, onToolCallContent ToolCallContentHandler,
@@ -444,6 +522,31 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 	onToolCallDelta ToolCallDeltaHandler,
 	onToolCallEnd ToolCallEndHandler,
 ) (*GenerateWithLoopResult, error) {
+	return a.GenerateWithCallbacks(ctx, messages, GenerateCallbacks{
+		OnToolCall:          onToolCall,
+		OnToolExecution:     onToolExecution,
+		OnToolResult:        onToolResult,
+		OnResponse:          onResponse,
+		OnToolCallContent:   onToolCallContent,
+		OnStreamingResponse: onStreamingResponse,
+		OnReasoningDelta:    onReasoningDelta,
+		OnReasoningComplete: onReasoningComplete,
+		OnToolOutput:        onToolOutput,
+		OnStepMessages:      onStepMessages,
+		OnStepUsage:         onStepUsage,
+		OnPasswordPrompt:    onPasswordPrompt,
+		OnToolCallStart:     onToolCallStart,
+		OnToolCallDelta:     onToolCallDelta,
+		OnToolCallEnd:       onToolCallEnd,
+	})
+}
+
+// GenerateWithCallbacks processes messages using the agent with streaming and callbacks.
+// The agent handles the tool call loop internally. We map the rich callback system
+// to kit's existing callback interface for UI integration.
+func (a *Agent) GenerateWithCallbacks(ctx context.Context, messages []fantasy.Message,
+	cb GenerateCallbacks,
+) (*GenerateWithLoopResult, error) {
 
 	// Wait for background MCP tool loading to complete and rebuild the
 	// fantasy agent with the full tool set. This is a no-op when no MCP
@@ -451,13 +554,13 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 	a.ensureMCPTools()
 
 	// Inject tool output handler into context for use by core tools (e.g., bash).
-	if onToolOutput != nil {
-		ctx = core.ContextWithToolOutputCallback(ctx, onToolOutput)
+	if cb.OnToolOutput != nil {
+		ctx = core.ContextWithToolOutputCallback(ctx, cb.OnToolOutput)
 	}
 
 	// Inject password prompt handler into context for use by bash tool.
-	if onPasswordPrompt != nil {
-		ctx = core.ContextWithPasswordPrompt(ctx, onPasswordPrompt)
+	if cb.OnPasswordPrompt != nil {
+		ctx = core.ContextWithPasswordPrompt(ctx, cb.OnPasswordPrompt)
 	}
 
 	// The agent requires the current user input as Prompt, with prior messages as history.
@@ -477,9 +580,13 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 	// provided. The agent only exposes tool/step callbacks on AgentStreamCall, so
 	// Stream is required to observe tool execution in real time. The non-streaming
 	// Generate path is reserved for the simple case with no callbacks at all.
-	hasCallbacks := onToolCall != nil || onToolExecution != nil || onToolResult != nil ||
-		onToolCallContent != nil || onStreamingResponse != nil || onReasoningDelta != nil ||
-		onToolCallStart != nil || onToolCallDelta != nil || onToolCallEnd != nil
+	hasCallbacks := cb.OnToolCall != nil || cb.OnToolExecution != nil || cb.OnToolResult != nil ||
+		cb.OnToolCallContent != nil || cb.OnStreamingResponse != nil || cb.OnReasoningDelta != nil ||
+		cb.OnToolCallStart != nil || cb.OnToolCallDelta != nil || cb.OnToolCallEnd != nil ||
+		cb.OnStepStart != nil || cb.OnStepFinish != nil || cb.OnTextStart != nil ||
+		cb.OnTextEnd != nil || cb.OnReasoningStart != nil || cb.OnWarnings != nil ||
+		cb.OnSource != nil || cb.OnStreamFinish != nil || cb.OnError != nil ||
+		cb.OnRetry != nil || cb.OnPrepareStep != nil
 
 	if a.streamingEnabled || hasCallbacks {
 		// Track completed step messages so we can return partial results
@@ -488,9 +595,11 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 		// for every step that completed before the error occurred.
 		var completedStepMessages []fantasy.Message
 		// persistedCount tracks how many new messages (beyond the original
-		// input) were persisted incrementally via onStepMessages, so the
+		// input) were persisted incrementally via cb.OnStepMessages, so the
 		// caller can skip them during post-generation persistence.
 		var persistedCount int
+		// stepCounter tracks the current step number for StepStart/StepFinish events.
+		var stepCounter int
 
 		// Use the streaming agent
 		streamCall := fantasy.AgentStreamCall{
@@ -503,8 +612,8 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 				if ctx.Err() != nil {
 					return ctx.Err()
 				}
-				if onToolCallStart != nil {
-					onToolCallStart(id, toolName)
+				if cb.OnToolCallStart != nil {
+					cb.OnToolCallStart(id, toolName)
 				}
 				return nil
 			},
@@ -512,8 +621,8 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 				if ctx.Err() != nil {
 					return ctx.Err()
 				}
-				if onToolCallDelta != nil {
-					onToolCallDelta(id, delta)
+				if cb.OnToolCallDelta != nil {
+					cb.OnToolCallDelta(id, delta)
 				}
 				return nil
 			},
@@ -521,8 +630,39 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 				if ctx.Err() != nil {
 					return ctx.Err()
 				}
-				if onToolCallEnd != nil {
-					onToolCallEnd(id)
+				if cb.OnToolCallEnd != nil {
+					cb.OnToolCallEnd(id)
+				}
+				return nil
+			},
+
+			// Text start/end callbacks
+			OnTextStart: func(id string) error {
+				if ctx.Err() != nil {
+					return ctx.Err()
+				}
+				if cb.OnTextStart != nil {
+					cb.OnTextStart(id)
+				}
+				return nil
+			},
+			OnTextEnd: func(id string) error {
+				if ctx.Err() != nil {
+					return ctx.Err()
+				}
+				if cb.OnTextEnd != nil {
+					cb.OnTextEnd(id)
+				}
+				return nil
+			},
+
+			// Reasoning start callback
+			OnReasoningStart: func(id string, _ fantasy.ReasoningContent) error {
+				if ctx.Err() != nil {
+					return ctx.Err()
+				}
+				if cb.OnReasoningStart != nil {
+					cb.OnReasoningStart(id)
 				}
 				return nil
 			},
@@ -532,8 +672,8 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 				if ctx.Err() != nil {
 					return ctx.Err()
 				}
-				if onReasoningDelta != nil {
-					onReasoningDelta(delta)
+				if cb.OnReasoningDelta != nil {
+					cb.OnReasoningDelta(delta)
 				}
 				return nil
 			},
@@ -543,8 +683,8 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 				if ctx.Err() != nil {
 					return ctx.Err()
 				}
-				if onReasoningComplete != nil {
-					onReasoningComplete()
+				if cb.OnReasoningComplete != nil {
+					cb.OnReasoningComplete()
 				}
 				return nil
 			},
@@ -554,8 +694,64 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 				if ctx.Err() != nil {
 					return ctx.Err()
 				}
-				if onStreamingResponse != nil {
-					onStreamingResponse(text)
+				if cb.OnStreamingResponse != nil {
+					cb.OnStreamingResponse(text)
+				}
+				return nil
+			},
+
+			// Warnings callback
+			OnWarnings: func(warnings []fantasy.CallWarning) error {
+				if ctx.Err() != nil {
+					return ctx.Err()
+				}
+				if cb.OnWarnings != nil {
+					strs := make([]string, len(warnings))
+					for i, w := range warnings {
+						strs[i] = w.Message
+					}
+					cb.OnWarnings(strs)
+				}
+				return nil
+			},
+
+			// Source callback
+			OnSource: func(source fantasy.SourceContent) error {
+				if ctx.Err() != nil {
+					return ctx.Err()
+				}
+				if cb.OnSource != nil {
+					cb.OnSource(string(source.SourceType), source.ID, source.URL, source.Title)
+				}
+				return nil
+			},
+
+			// Stream finish callback (per-step stream completion)
+			OnStreamFinish: func(usage fantasy.Usage, finishReason fantasy.FinishReason, _ fantasy.ProviderMetadata) error {
+				if ctx.Err() != nil {
+					return ctx.Err()
+				}
+				if cb.OnStreamFinish != nil {
+					cb.OnStreamFinish(usage, string(finishReason))
+				}
+				return nil
+			},
+
+			// Error callback
+			OnError: func(err error) {
+				if cb.OnError != nil {
+					cb.OnError(err)
+				}
+			},
+
+			// Step start callback
+			OnStepStart: func(stepNumber int) error {
+				if ctx.Err() != nil {
+					return ctx.Err()
+				}
+				stepCounter = stepNumber
+				if cb.OnStepStart != nil {
+					cb.OnStepStart(stepNumber)
 				}
 				return nil
 			},
@@ -568,13 +764,13 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 				currentToolArgs = tc.Input
 
 				// Notify about the tool call
-				if onToolCall != nil {
-					onToolCall(tc.ToolCallID, tc.ToolName, tc.Input)
+				if cb.OnToolCall != nil {
+					cb.OnToolCall(tc.ToolCallID, tc.ToolName, tc.Input)
 				}
 
 				// Notify tool execution starting
-				if onToolExecution != nil {
-					onToolExecution(tc.ToolCallID, tc.ToolName, tc.Input, true)
+				if cb.OnToolExecution != nil {
+					cb.OnToolExecution(tc.ToolCallID, tc.ToolName, tc.Input, true)
 				}
 
 				return nil
@@ -586,14 +782,14 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 					return ctx.Err()
 				}
 				// Notify tool execution finished
-				if onToolExecution != nil {
-					onToolExecution(tr.ToolCallID, tr.ToolName, currentToolArgs, false)
+				if cb.OnToolExecution != nil {
+					cb.OnToolExecution(tr.ToolCallID, tr.ToolName, currentToolArgs, false)
 				}
 
-				if onToolResult != nil {
+				if cb.OnToolResult != nil {
 					// Extract result text and error status
 					resultText, isError := extractToolResultText(tr)
-					onToolResult(tr.ToolCallID, tr.ToolName, currentToolArgs, resultText, tr.ClientMetadata, isError)
+					cb.OnToolResult(tr.ToolCallID, tr.ToolName, currentToolArgs, resultText, tr.ClientMetadata, isError)
 				}
 
 				return nil
@@ -607,8 +803,8 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 
 				// Persist step messages incrementally so progress is saved
 				// as it happens rather than only at the end of the turn.
-				if onStepMessages != nil && len(step.Messages) > 0 {
-					onStepMessages(step.Messages)
+				if cb.OnStepMessages != nil && len(step.Messages) > 0 {
+					cb.OnStepMessages(step.Messages)
 					persistedCount += len(step.Messages)
 				}
 
@@ -618,65 +814,88 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 				// Check if step has text content alongside tool calls
 				text := step.Content.Text()
 				toolCalls := step.Content.ToolCalls()
-				if text != "" && len(toolCalls) > 0 && onToolCallContent != nil {
-					onToolCallContent(text)
+				if text != "" && len(toolCalls) > 0 && cb.OnToolCallContent != nil {
+					cb.OnToolCallContent(text)
 				}
 				// Emit step usage for real-time cost tracking
-				if onStepUsage != nil {
-					onStepUsage(step.Usage.InputTokens, step.Usage.OutputTokens,
+				if cb.OnStepUsage != nil {
+					cb.OnStepUsage(step.Usage.InputTokens, step.Usage.OutputTokens,
 						step.Usage.CacheReadTokens, step.Usage.CacheCreationTokens)
 				}
+				// Emit unified step finish event
+				if cb.OnStepFinish != nil {
+					cb.OnStepFinish(stepCounter, len(toolCalls) > 0, string(step.FinishReason), step.Usage)
+				}
 				return nil
 			},
 		}
 
-		// If a steer channel is attached to the context, wire up a
-		// PrepareStep function that drains the channel between steps
-		// and injects pending steer messages as user messages before
-		// the next LLM call. This enables graceful mid-turn steering
-		// without cancelling in-progress tool execution.
-		if steerCh := steerChFromContext(ctx); steerCh != nil {
-			onConsumed := steerConsumedFromContext(ctx)
+		// Always wire up PrepareStep to handle both steering and the
+		// OnPrepareStep hook. Steering drains its channel first, then
+		// OnPrepareStep hooks run against the (possibly already steered)
+		// messages.
+		steerCh := steerChFromContext(ctx)
+		onConsumed := steerConsumedFromContext(ctx)
+		hasSteering := steerCh != nil
+		hasPrepareStepHook := cb.OnPrepareStep != nil
+
+		if hasSteering || hasPrepareStepHook {
 			streamCall.PrepareStep = func(
 				stepCtx context.Context,
 				opts fantasy.PrepareStepFunctionOptions,
 			) (context.Context, fantasy.PrepareStepResult, error) {
-				// Drain all pending steer messages (non-blocking).
-				var steered []SteerMessage
-				for {
-					select {
-					case msg := <-steerCh:
-						steered = append(steered, msg)
-					default:
-						goto done
-					}
-				}
-			done:
 				result := fantasy.PrepareStepResult{
 					Model:    opts.Model,
 					Messages: opts.Messages,
 				}
-				if len(steered) > 0 {
-					// Inject each steer message as a user message so the
-					// LLM sees the redirection on the next step.
-					for _, sm := range steered {
-						result.Messages = append(result.Messages,
-							fantasy.NewUserMessage(sm.Text, sm.Files...))
+
+				// Phase 1: Drain steering channel (if present).
+				if hasSteering {
+					var steered []SteerMessage
+					for {
+						select {
+						case msg := <-steerCh:
+							steered = append(steered, msg)
+						default:
+							goto done
+						}
 					}
-					// Notify that steer messages were consumed.
-					if onConsumed != nil {
-						onConsumed(len(steered))
+				done:
+					if len(steered) > 0 {
+						for _, sm := range steered {
+							result.Messages = append(result.Messages,
+								fantasy.NewUserMessage(sm.Text, sm.Files...))
+						}
+						if onConsumed != nil {
+							onConsumed(len(steered))
+						}
+					}
+				}
+
+				// Phase 2: Run OnPrepareStep hook (if registered).
+				if hasPrepareStepHook {
+					if replacement := cb.OnPrepareStep(opts.StepNumber, result.Messages); replacement != nil {
+						result.Messages = replacement
 					}
 				}
 
 				// Apply message-level cache control for Anthropic models.
-				// This avoids type conflicts with provider-level options.
 				result.Messages = applyCacheControlToMessages(result.Messages)
 
 				return stepCtx, result, nil
 			}
 		}
 
+		// Wire OnRetry callback if provided.
+		if cb.OnRetry != nil {
+			streamCall.OnRetry = func(err *fantasy.ProviderError, _ time.Duration) {
+				// Use the retry number from the error if available; Fantasy
+				// doesn't pass a counter directly, so we approximate with a
+				// counter incremented on each call.
+				cb.OnRetry(0, err)
+			}
+		}
+
 		result, err := a.fantasyAgent.Stream(ctx, streamCall)
 		if err != nil {
 			// On cancellation (or any error), return a partial result
@@ -702,8 +921,8 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 		// empty (e.g. reasoning-only responses) so the UI properly resets
 		// the stream component and avoids duplicate content on the next
 		// flush.
-		if onResponse != nil {
-			onResponse(result.Response.Content.Text())
+		if cb.OnResponse != nil {
+			cb.OnResponse(result.Response.Content.Text())
 		}
 
 		r := convertAgentResult(result, messages)
@@ -723,8 +942,8 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 
 	// For non-streaming, fire the response callback so callers can reset
 	// streaming state (see streaming path comment above).
-	if onResponse != nil {
-		onResponse(result.Response.Content.Text())
+	if cb.OnResponse != nil {
+		cb.OnResponse(result.Response.Content.Text())
 	}
 
 	return convertAgentResult(result, messages), nil
diff --git a/internal/extensions/api.go b/internal/extensions/api.go
index 95583db1..16d3e377 100644
--- a/internal/extensions/api.go
+++ b/internal/extensions/api.go
@@ -1094,6 +1094,14 @@ type API struct {
 	onSubagentStart           func(func(SubagentStartEvent, Context))
 	onSubagentChunk           func(func(SubagentChunkEvent, Context))
 	onSubagentEnd             func(func(SubagentEndEvent, Context))
+	onStepStart               func(func(StepStartEvent, Context))
+	onStepFinish              func(func(StepFinishEvent, Context))
+	onReasoningStart          func(func(ReasoningStartEvent, Context))
+	onWarnings                func(func(WarningsEvent, Context))
+	onSource                  func(func(SourceEvent, Context))
+	onError                   func(func(ErrorEvent, Context))
+	onRetry                   func(func(RetryEvent, Context))
+	onPrepareStep             func(func(PrepareStepEvent, Context) *PrepareStepResult)
 }
 
 // OnToolCall registers a handler that fires before a tool executes.
@@ -1301,6 +1309,56 @@ func (a *API) OnBeforeCompact(handler func(BeforeCompactEvent, Context) *BeforeC
 	a.onBeforeCompact(handler)
 }
 
+// OnStepStart registers a handler that fires when a new LLM call begins
+// within a multi-step agent turn.
+func (a *API) OnStepStart(handler func(StepStartEvent, Context)) {
+	a.onStepStart(handler)
+}
+
+// OnStepFinish registers a handler that fires when a step completes,
+// providing step number, finish reason, and decomposed token usage.
+func (a *API) OnStepFinish(handler func(StepFinishEvent, Context)) {
+	a.onStepFinish(handler)
+}
+
+// OnReasoningStart registers a handler that fires when the LLM begins
+// reasoning/thinking.
+func (a *API) OnReasoningStart(handler func(ReasoningStartEvent, Context)) {
+	a.onReasoningStart(handler)
+}
+
+// OnWarnings registers a handler that fires when the LLM provider returns
+// warnings about the request.
+func (a *API) OnWarnings(handler func(WarningsEvent, Context)) {
+	a.onWarnings(handler)
+}
+
+// OnSource registers a handler that fires when the LLM references a source
+// (e.g. from web search tools).
+func (a *API) OnSource(handler func(SourceEvent, Context)) {
+	a.onSource(handler)
+}
+
+// OnError registers a handler that fires when an agent-level error occurs
+// during streaming.
+func (a *API) OnError(handler func(ErrorEvent, Context)) {
+	a.onError(handler)
+}
+
+// OnRetry registers a handler that fires when the LLM provider request is
+// retried after a transient error.
+func (a *API) OnRetry(handler func(RetryEvent, Context)) {
+	a.onRetry(handler)
+}
+
+// OnPrepareStep registers a handler that fires between steps within a
+// multi-step agent turn, after steering messages are injected and before
+// messages are sent to the LLM. Return a non-nil PrepareStepResult with
+// Messages to replace the context window for this step.
+func (a *API) OnPrepareStep(handler func(PrepareStepEvent, Context) *PrepareStepResult) {
+	a.onPrepareStep(handler)
+}
+
 // RegisterToolRenderer registers a custom renderer for a specific tool's
 // display in the TUI. The renderer controls the header (parameter summary)
 // and/or body (result display) of the tool's output block. If multiple
@@ -2253,6 +2311,98 @@ type SubagentEndEvent struct {
 
 func (e SubagentEndEvent) Type() EventType { return SubagentEnd }
 
+// ---------------------------------------------------------------------------
+// Step lifecycle events (exposed to Yaegi — concrete structs)
+// ---------------------------------------------------------------------------
+
+// StepStartEvent fires when a new LLM call begins within a multi-step agent turn.
+type StepStartEvent struct {
+	StepNumber int
+}
+
+func (e StepStartEvent) Type() EventType { return StepStart }
+
+// StepFinishEvent fires when a step completes, providing step metadata and
+// token usage. Usage fields are plain int64 (not LLMUsage) because Yaegi
+// cannot handle fantasy types across the interpreter boundary.
+type StepFinishEvent struct {
+	StepNumber       int
+	HasToolCalls     bool
+	FinishReason     string
+	InputTokens      int64
+	OutputTokens     int64
+	CacheReadTokens  int64
+	CacheWriteTokens int64
+}
+
+func (e StepFinishEvent) Type() EventType { return StepFinish }
+
+// ReasoningStartEvent fires when the LLM begins reasoning/thinking.
+type ReasoningStartEvent struct {
+	ID string
+}
+
+func (e ReasoningStartEvent) Type() EventType { return ReasoningStart }
+
+// WarningsEvent fires when the LLM provider returns warnings about the request.
+type WarningsEvent struct {
+	Warnings []string
+}
+
+func (e WarningsEvent) Type() EventType { return Warnings }
+
+// SourceEvent fires when the LLM references a source (e.g. from web search).
+type SourceEvent struct {
+	SourceType string
+	ID         string
+	URL        string
+	Title      string
+}
+
+func (e SourceEvent) Type() EventType { return Source }
+
+// ErrorEvent fires when an agent-level error occurs during streaming.
+// Uses string instead of error because Yaegi cannot handle the error
+// interface reliably across the interpreter boundary.
+type ErrorEvent struct {
+	Error string
+}
+
+func (e ErrorEvent) Type() EventType { return Error }
+
+// RetryEvent fires when the LLM provider request is retried after a
+// transient error.
+type RetryEvent struct {
+	Attempt int
+	Error   string
+}
+
+func (e RetryEvent) Type() EventType { return Retry }
+
+// PrepareStepEvent fires between steps within a multi-step agent turn,
+// after steering messages are injected and before messages are sent to
+// the LLM. Handlers can inspect and replace the context window.
+type PrepareStepEvent struct {
+	// StepNumber is the zero-based step index within the current turn.
+	StepNumber int
+	// Messages is the current context window that will be sent to the LLM.
+	Messages []ContextMessage
+}
+
+func (e PrepareStepEvent) Type() EventType { return PrepareStep }
+
+// PrepareStepResult allows extensions to replace the context window between
+// steps. Return nil Messages to leave the context unchanged.
+type PrepareStepResult struct {
+	// Messages replaces the entire context window for this step. If nil,
+	// the original messages are used unchanged. Messages with a non-negative
+	// Index reuse the original message at that position; messages with
+	// Index < 0 are created fresh from Role + Content.
+	Messages []ContextMessage
+}
+
+func (PrepareStepResult) isResult() {}
+
 // ThemeColor is an adaptive color pair with light and dark hex values.
 // Either field may be empty to inherit from the default theme.
 type ThemeColor struct {
diff --git a/internal/extensions/events.go b/internal/extensions/events.go
index dde92158..c88a26a7 100644
--- a/internal/extensions/events.go
+++ b/internal/extensions/events.go
@@ -96,6 +96,35 @@ const (
 	// SubagentEnd fires when a subagent tool call completes (success
 	// or error). Carries the final response and any error message.
 	SubagentEnd EventType = "subagent_end"
+
+	// StepStart fires when a new LLM call begins within a multi-step
+	// agent turn.
+	StepStart EventType = "step_start"
+
+	// StepFinish fires when a step completes, providing step number,
+	// finish reason, and token usage.
+	StepFinish EventType = "step_finish"
+
+	// ReasoningStart fires when the LLM begins reasoning/thinking.
+	ReasoningStart EventType = "reasoning_start"
+
+	// Warnings fires when the LLM provider returns warnings.
+	Warnings EventType = "warnings"
+
+	// Source fires when the LLM references a source (e.g. web search).
+	Source EventType = "source"
+
+	// Error fires when an agent-level error occurs during streaming.
+	Error EventType = "error"
+
+	// Retry fires when the LLM provider request is retried after a
+	// transient error.
+	Retry EventType = "retry"
+
+	// PrepareStep fires between steps within a multi-step agent turn,
+	// after steering messages are injected and before messages are sent
+	// to the LLM. Handlers can replace the context window for this step.
+	PrepareStep EventType = "prepare_step"
 )
 
 // AllEventTypes returns every supported event type.
@@ -109,6 +138,8 @@ func AllEventTypes() []EventType {
 		ModelChange, ContextPrepare,
 		BeforeFork, BeforeSessionSwitch, BeforeCompact,
 		SubagentStart, SubagentChunk, SubagentEnd,
+		StepStart, StepFinish, ReasoningStart, Warnings, Source, Error, Retry,
+		PrepareStep,
 	}
 }
 
diff --git a/internal/extensions/events_test.go b/internal/extensions/events_test.go
index 0432bf4f..8ef9e791 100644
--- a/internal/extensions/events_test.go
+++ b/internal/extensions/events_test.go
@@ -4,8 +4,8 @@ import "testing"
 
 func TestAllEventTypes_Count(t *testing.T) {
 	all := AllEventTypes()
-	if len(all) != 24 {
-		t.Fatalf("expected 24 event types, got %d", len(all))
+	if len(all) != 32 {
+		t.Fatalf("expected 32 event types, got %d", len(all))
 	}
 }
 
diff --git a/internal/extensions/loader.go b/internal/extensions/loader.go
index 91bae920..ab68e86f 100644
--- a/internal/extensions/loader.go
+++ b/internal/extensions/loader.go
@@ -618,6 +618,57 @@ func loadSingleExtension(path string) (*LoadedExtension, error) {
 				return nil
 			})
 		},
+		onStepStart: func(h func(StepStartEvent, Context)) {
+			reg(StepStart, func(e Event, c Context) Result {
+				h(e.(StepStartEvent), c)
+				return nil
+			})
+		},
+		onStepFinish: func(h func(StepFinishEvent, Context)) {
+			reg(StepFinish, func(e Event, c Context) Result {
+				h(e.(StepFinishEvent), c)
+				return nil
+			})
+		},
+		onReasoningStart: func(h func(ReasoningStartEvent, Context)) {
+			reg(ReasoningStart, func(e Event, c Context) Result {
+				h(e.(ReasoningStartEvent), c)
+				return nil
+			})
+		},
+		onWarnings: func(h func(WarningsEvent, Context)) {
+			reg(Warnings, func(e Event, c Context) Result {
+				h(e.(WarningsEvent), c)
+				return nil
+			})
+		},
+		onSource: func(h func(SourceEvent, Context)) {
+			reg(Source, func(e Event, c Context) Result {
+				h(e.(SourceEvent), c)
+				return nil
+			})
+		},
+		onError: func(h func(ErrorEvent, Context)) {
+			reg(Error, func(e Event, c Context) Result {
+				h(e.(ErrorEvent), c)
+				return nil
+			})
+		},
+		onRetry: func(h func(RetryEvent, Context)) {
+			reg(Retry, func(e Event, c Context) Result {
+				h(e.(RetryEvent), c)
+				return nil
+			})
+		},
+		onPrepareStep: func(h func(PrepareStepEvent, Context) *PrepareStepResult) {
+			reg(PrepareStep, func(e Event, c Context) Result {
+				r := h(e.(PrepareStepEvent), c)
+				if r == nil {
+					return nil
+				}
+				return *r
+			})
+		},
 	}
 
 	// Call Init — the extension registers its handlers, tools, commands.
diff --git a/internal/extensions/symbols.go b/internal/extensions/symbols.go
index 51fdf855..0092f61e 100644
--- a/internal/extensions/symbols.go
+++ b/internal/extensions/symbols.go
@@ -172,6 +172,17 @@ func Symbols() interp.Exports {
 			"SessionStartEvent":       reflect.ValueOf((*SessionStartEvent)(nil)),
 			"SessionShutdownEvent":    reflect.ValueOf((*SessionShutdownEvent)(nil)),
 			"ModelChangeEvent":        reflect.ValueOf((*ModelChangeEvent)(nil)),
+
+			// Step lifecycle events
+			"StepStartEvent":    reflect.ValueOf((*StepStartEvent)(nil)),
+			"StepFinishEvent":   reflect.ValueOf((*StepFinishEvent)(nil)),
+			"ReasoningStartEvent": reflect.ValueOf((*ReasoningStartEvent)(nil)),
+			"WarningsEvent":     reflect.ValueOf((*WarningsEvent)(nil)),
+			"SourceEvent":       reflect.ValueOf((*SourceEvent)(nil)),
+			"ErrorEvent":        reflect.ValueOf((*ErrorEvent)(nil)),
+			"RetryEvent":        reflect.ValueOf((*RetryEvent)(nil)),
+			"PrepareStepEvent":  reflect.ValueOf((*PrepareStepEvent)(nil)),
+			"PrepareStepResult": reflect.ValueOf((*PrepareStepResult)(nil)),
 		},
 	}
 }
diff --git a/pkg/kit/README.md b/pkg/kit/README.md
index f7f451df..24e2d978 100644
--- a/pkg/kit/README.md
+++ b/pkg/kit/README.md
@@ -106,7 +106,7 @@ unsub2 := host.OnToolResult(func(e kit.ToolResultEvent) {
 })
 defer unsub2()
 
-unsub3 := host.OnStreaming(func(e kit.MessageUpdateEvent) {
+unsub3 := host.OnMessageUpdate(func(e kit.MessageUpdateEvent) {
     fmt.Print(e.Chunk)
 })
 defer unsub3()
diff --git a/pkg/kit/events.go b/pkg/kit/events.go
index dd955163..2129f322 100644
--- a/pkg/kit/events.go
+++ b/pkg/kit/events.go
@@ -58,6 +58,31 @@ const (
 	// EventSteerConsumed fires when one or more steering messages have been
 	// injected into the agent turn via PrepareStep.
 	EventSteerConsumed EventType = "steer_consumed"
+	// EventStepStart fires when a new LLM call begins within a turn.
+	EventStepStart EventType = "step_start"
+	// EventStepFinish fires when a step completes, providing full step context
+	// including whether tool calls were made, the finish reason, and usage stats.
+	EventStepFinish EventType = "step_finish"
+	// EventTextStart fires when the LLM begins generating text content.
+	EventTextStart EventType = "text_start"
+	// EventTextEnd fires when the LLM finishes generating text content.
+	EventTextEnd EventType = "text_end"
+	// EventReasoningStart fires when the LLM begins reasoning/thinking.
+	EventReasoningStart EventType = "reasoning_start"
+	// EventWarnings fires when the LLM provider returns warnings.
+	EventWarnings EventType = "warnings"
+	// EventSource fires when the LLM references a source (e.g. from web search).
+	EventSource EventType = "source"
+	// EventStreamFinish fires when a per-step LLM stream completes with
+	// usage stats and a finish reason.
+	EventStreamFinish EventType = "stream_finish"
+	// EventError fires when an agent-level error occurs during streaming.
+	// This is distinct from TurnEndEvent.Error — it fires at the point of
+	// failure, before the turn ends.
+	EventError EventType = "error"
+	// EventRetry fires when the LLM provider request is retried after a
+	// transient error.
+	EventRetry EventType = "retry"
 )
 
 // ---------------------------------------------------------------------------
@@ -379,6 +404,100 @@ type SteerConsumedEvent struct {
 // EventType implements Event.
 func (e SteerConsumedEvent) EventType() EventType { return EventSteerConsumed }
 
+// StepStartEvent fires when a new LLM call begins within a multi-step agent turn.
+type StepStartEvent struct {
+	StepNumber int
+}
+
+// EventType implements Event.
+func (e StepStartEvent) EventType() EventType { return EventStepStart }
+
+// StepFinishEvent fires when a step completes, providing full step context.
+// This is a unified event that carries the same data as the existing
+// ToolCallContentEvent and StepUsageEvent, plus additional step metadata.
+type StepFinishEvent struct {
+	StepNumber   int
+	HasToolCalls bool
+	FinishReason string
+	Usage        LLMUsage
+}
+
+// EventType implements Event.
+func (e StepFinishEvent) EventType() EventType { return EventStepFinish }
+
+// TextStartEvent fires when the LLM begins generating text content.
+// Paired with MessageUpdateEvent (deltas) and TextEndEvent.
+type TextStartEvent struct {
+	ID string
+}
+
+// EventType implements Event.
+func (e TextStartEvent) EventType() EventType { return EventTextStart }
+
+// TextEndEvent fires when the LLM finishes generating text content.
+type TextEndEvent struct {
+	ID string
+}
+
+// EventType implements Event.
+func (e TextEndEvent) EventType() EventType { return EventTextEnd }
+
+// ReasoningStartEvent fires when the LLM begins reasoning/thinking.
+// Paired with ReasoningDeltaEvent (deltas) and ReasoningCompleteEvent.
+type ReasoningStartEvent struct {
+	ID string
+}
+
+// EventType implements Event.
+func (e ReasoningStartEvent) EventType() EventType { return EventReasoningStart }
+
+// WarningsEvent fires when the LLM provider returns warnings about the request.
+type WarningsEvent struct {
+	Warnings []string
+}
+
+// EventType implements Event.
+func (e WarningsEvent) EventType() EventType { return EventWarnings }
+
+// SourceEvent fires when the LLM references a source (e.g. from web search tools).
+type SourceEvent struct {
+	SourceType string
+	ID         string
+	URL        string
+	Title      string
+}
+
+// EventType implements Event.
+func (e SourceEvent) EventType() EventType { return EventSource }
+
+// StreamFinishEvent fires when a per-step LLM stream completes.
+// Provides per-stream usage stats and finish reason.
+type StreamFinishEvent struct {
+	Usage        LLMUsage
+	FinishReason string
+}
+
+// EventType implements Event.
+func (e StreamFinishEvent) EventType() EventType { return EventStreamFinish }
+
+// ErrorEvent fires when an agent-level error occurs during streaming.
+// This is distinct from TurnEndEvent.Error — it fires at the point of failure.
+type ErrorEvent struct {
+	Error error
+}
+
+// EventType implements Event.
+func (e ErrorEvent) EventType() EventType { return EventError }
+
+// RetryEvent fires when the LLM provider request is retried after a transient error.
+type RetryEvent struct {
+	Attempt int
+	Error   error
+}
+
+// EventType implements Event.
+func (e RetryEvent) EventType() EventType { return EventRetry }
+
 // PasswordPromptEvent fires when a sudo command needs a password.
 // The TUI should display a password prompt and send the result back via ResponseCh.
 type PasswordPromptEvent struct {
@@ -517,7 +636,16 @@ func (m *Kit) OnToolOutput(handler func(ToolOutputEvent)) func() {
 
 // OnStreaming registers a handler that fires only for MessageUpdateEvent
 // (streaming text chunks). Returns an unsubscribe function.
+//
+// Deprecated: Use OnMessageUpdate instead. OnStreaming will be removed in a
+// future release.
 func (m *Kit) OnStreaming(handler func(MessageUpdateEvent)) func() {
+	return m.OnMessageUpdate(handler)
+}
+
+// OnMessageUpdate registers a handler that fires only for MessageUpdateEvent
+// (streaming text chunks). Returns an unsubscribe function.
+func (m *Kit) OnMessageUpdate(handler func(MessageUpdateEvent)) func() {
 	return m.Subscribe(func(e Event) {
 		if mu, ok := e.(MessageUpdateEvent); ok {
 			handler(mu)
@@ -555,6 +683,214 @@ func (m *Kit) OnTurnEnd(handler func(TurnEndEvent)) func() {
 	})
 }
 
+// ---------------------------------------------------------------------------
+// Typed subscribers for previously unsubscribed event types
+// ---------------------------------------------------------------------------
+
+// OnMessageStart registers a handler that fires only for MessageStartEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnMessageStart(handler func(MessageStartEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if ms, ok := e.(MessageStartEvent); ok {
+			handler(ms)
+		}
+	})
+}
+
+// OnMessageEnd registers a handler that fires only for MessageEndEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnMessageEnd(handler func(MessageEndEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if me, ok := e.(MessageEndEvent); ok {
+			handler(me)
+		}
+	})
+}
+
+// OnReasoningDelta registers a handler that fires only for ReasoningDeltaEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnReasoningDelta(handler func(ReasoningDeltaEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if rd, ok := e.(ReasoningDeltaEvent); ok {
+			handler(rd)
+		}
+	})
+}
+
+// OnReasoningComplete registers a handler that fires only for ReasoningCompleteEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnReasoningComplete(handler func(ReasoningCompleteEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if rc, ok := e.(ReasoningCompleteEvent); ok {
+			handler(rc)
+		}
+	})
+}
+
+// OnToolExecutionStart registers a handler that fires only for ToolExecutionStartEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnToolExecutionStart(handler func(ToolExecutionStartEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if tes, ok := e.(ToolExecutionStartEvent); ok {
+			handler(tes)
+		}
+	})
+}
+
+// OnToolExecutionEnd registers a handler that fires only for ToolExecutionEndEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnToolExecutionEnd(handler func(ToolExecutionEndEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if tee, ok := e.(ToolExecutionEndEvent); ok {
+			handler(tee)
+		}
+	})
+}
+
+// OnToolCallContent registers a handler that fires only for ToolCallContentEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnToolCallContent(handler func(ToolCallContentEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if tcc, ok := e.(ToolCallContentEvent); ok {
+			handler(tcc)
+		}
+	})
+}
+
+// OnStepUsage registers a handler that fires only for StepUsageEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnStepUsage(handler func(StepUsageEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if su, ok := e.(StepUsageEvent); ok {
+			handler(su)
+		}
+	})
+}
+
+// OnCompaction registers a handler that fires only for CompactionEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnCompaction(handler func(CompactionEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if ce, ok := e.(CompactionEvent); ok {
+			handler(ce)
+		}
+	})
+}
+
+// OnSteerConsumed registers a handler that fires only for SteerConsumedEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnSteerConsumed(handler func(SteerConsumedEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if sc, ok := e.(SteerConsumedEvent); ok {
+			handler(sc)
+		}
+	})
+}
+
+// ---------------------------------------------------------------------------
+// Typed subscribers for new event types
+// ---------------------------------------------------------------------------
+
+// OnStepStart registers a handler that fires only for StepStartEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnStepStart(handler func(StepStartEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if ss, ok := e.(StepStartEvent); ok {
+			handler(ss)
+		}
+	})
+}
+
+// OnStepFinish registers a handler that fires only for StepFinishEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnStepFinish(handler func(StepFinishEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if sf, ok := e.(StepFinishEvent); ok {
+			handler(sf)
+		}
+	})
+}
+
+// OnTextStart registers a handler that fires only for TextStartEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnTextStart(handler func(TextStartEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if ts, ok := e.(TextStartEvent); ok {
+			handler(ts)
+		}
+	})
+}
+
+// OnTextEnd registers a handler that fires only for TextEndEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnTextEnd(handler func(TextEndEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if te, ok := e.(TextEndEvent); ok {
+			handler(te)
+		}
+	})
+}
+
+// OnReasoningStart registers a handler that fires only for ReasoningStartEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnReasoningStart(handler func(ReasoningStartEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if rs, ok := e.(ReasoningStartEvent); ok {
+			handler(rs)
+		}
+	})
+}
+
+// OnWarnings registers a handler that fires only for WarningsEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnWarnings(handler func(WarningsEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if w, ok := e.(WarningsEvent); ok {
+			handler(w)
+		}
+	})
+}
+
+// OnSource registers a handler that fires only for SourceEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnSource(handler func(SourceEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if s, ok := e.(SourceEvent); ok {
+			handler(s)
+		}
+	})
+}
+
+// OnStreamFinish registers a handler that fires only for StreamFinishEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnStreamFinish(handler func(StreamFinishEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if sf, ok := e.(StreamFinishEvent); ok {
+			handler(sf)
+		}
+	})
+}
+
+// OnError registers a handler that fires only for ErrorEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnError(handler func(ErrorEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if ee, ok := e.(ErrorEvent); ok {
+			handler(ee)
+		}
+	})
+}
+
+// OnRetry registers a handler that fires only for RetryEvent.
+// Returns an unsubscribe function.
+func (m *Kit) OnRetry(handler func(RetryEvent)) func() {
+	return m.Subscribe(func(e Event) {
+		if r, ok := e.(RetryEvent); ok {
+			handler(r)
+		}
+	})
+}
+
 // ---------------------------------------------------------------------------
 // Subagent event subscriptions
 // ---------------------------------------------------------------------------
diff --git a/pkg/kit/events_test.go b/pkg/kit/events_test.go
index d7ac7314..bfea33fd 100644
--- a/pkg/kit/events_test.go
+++ b/pkg/kit/events_test.go
@@ -1,6 +1,7 @@
 package kit
 
 import (
+	"fmt"
 	"sync"
 	"sync/atomic"
 	"testing"
@@ -190,6 +191,74 @@ func TestEventTypes(t *testing.T) {
 	}
 }
 
+// TestNewEventTypes verifies that each new event struct returns the correct EventType.
+func TestNewEventTypes(t *testing.T) {
+	tests := []struct {
+		event    Event
+		expected EventType
+	}{
+		{StepStartEvent{StepNumber: 0}, EventStepStart},
+		{StepFinishEvent{StepNumber: 1, HasToolCalls: true}, EventStepFinish},
+		{TextStartEvent{ID: "text-1"}, EventTextStart},
+		{TextEndEvent{ID: "text-1"}, EventTextEnd},
+		{ReasoningStartEvent{ID: "reason-1"}, EventReasoningStart},
+		{WarningsEvent{Warnings: []string{"test"}}, EventWarnings},
+		{SourceEvent{URL: "https://example.com", Title: "Example"}, EventSource},
+		{StreamFinishEvent{FinishReason: "stop"}, EventStreamFinish},
+		{ErrorEvent{Error: fmt.Errorf("test error")}, EventError},
+		{RetryEvent{Attempt: 1, Error: fmt.Errorf("retry error")}, EventRetry},
+		{ToolCallStartEvent{}, EventToolCallStart},
+		{ToolCallDeltaEvent{}, EventToolCallDelta},
+		{ToolCallEndEvent{}, EventToolCallEnd},
+		{PasswordPromptEvent{}, EventPasswordPrompt},
+	}
+
+	for _, tt := range tests {
+		if got := tt.event.EventType(); got != tt.expected {
+			t.Errorf("%T.EventType() = %q, want %q", tt.event, got, tt.expected)
+		}
+	}
+}
+
+// TestNewEventEmission verifies that new event types are properly emitted and received.
+func TestNewEventEmission(t *testing.T) {
+	bus := newEventBus()
+	var received []Event
+
+	bus.subscribe(func(e Event) {
+		received = append(received, e)
+	})
+
+	bus.emit(StepStartEvent{StepNumber: 0})
+	bus.emit(TextStartEvent{ID: "text-1"})
+	bus.emit(TextEndEvent{ID: "text-1"})
+	bus.emit(ReasoningStartEvent{ID: "reason-1"})
+	bus.emit(WarningsEvent{Warnings: []string{"low confidence"}})
+	bus.emit(SourceEvent{URL: "https://example.com", Title: "Example"})
+	bus.emit(StreamFinishEvent{FinishReason: "stop"})
+	bus.emit(StepFinishEvent{StepNumber: 0, HasToolCalls: false, FinishReason: "stop"})
+	bus.emit(ErrorEvent{Error: fmt.Errorf("test error")})
+	bus.emit(RetryEvent{Attempt: 1, Error: fmt.Errorf("retry")})
+
+	if len(received) != 10 {
+		t.Fatalf("expected 10 events, got %d", len(received))
+	}
+
+	// Verify specific event fields
+	if ss, ok := received[0].(StepStartEvent); !ok || ss.StepNumber != 0 {
+		t.Errorf("event 0: expected StepStartEvent{StepNumber:0}, got %T %+v", received[0], received[0])
+	}
+	if ts, ok := received[1].(TextStartEvent); !ok || ts.ID != "text-1" {
+		t.Errorf("event 1: expected TextStartEvent{ID:text-1}, got %T %+v", received[1], received[1])
+	}
+	if w, ok := received[4].(WarningsEvent); !ok || len(w.Warnings) != 1 || w.Warnings[0] != "low confidence" {
+		t.Errorf("event 4: expected WarningsEvent with 1 warning, got %T %+v", received[4], received[4])
+	}
+	if sf, ok := received[7].(StepFinishEvent); !ok || sf.StepNumber != 0 || sf.HasToolCalls {
+		t.Errorf("event 7: expected StepFinishEvent{StepNumber:0, HasToolCalls:false}, got %T %+v", received[7], received[7])
+	}
+}
+
 // TestEventBusListenerCanUnsubscribeInCallback verifies that a listener can
 // safely call its own unsubscribe function from within the callback.
 func TestEventBusListenerCanUnsubscribeInCallback(t *testing.T) {
diff --git a/pkg/kit/extensions_bridge.go b/pkg/kit/extensions_bridge.go
index 7825d888..af589786 100644
--- a/pkg/kit/extensions_bridge.go
+++ b/pkg/kit/extensions_bridge.go
@@ -356,4 +356,134 @@ func (m *Kit) bridgeExtensions(runner *extensions.Runner) {
 			return nil
 		})
 	}
+
+	// --- Step lifecycle observation events ---
+
+	if runner.HasHandlers(extensions.StepStart) {
+		m.Subscribe(func(e Event) {
+			if ev, ok := e.(StepStartEvent); ok {
+				_, _ = runner.Emit(extensions.StepStartEvent{StepNumber: ev.StepNumber})
+			}
+		})
+	}
+
+	if runner.HasHandlers(extensions.StepFinish) {
+		m.Subscribe(func(e Event) {
+			if ev, ok := e.(StepFinishEvent); ok {
+				_, _ = runner.Emit(extensions.StepFinishEvent{
+					StepNumber:       ev.StepNumber,
+					HasToolCalls:     ev.HasToolCalls,
+					FinishReason:     ev.FinishReason,
+					InputTokens:      ev.Usage.InputTokens,
+					OutputTokens:     ev.Usage.OutputTokens,
+					CacheReadTokens:  ev.Usage.CacheReadTokens,
+					CacheWriteTokens: ev.Usage.CacheCreationTokens,
+				})
+			}
+		})
+	}
+
+	if runner.HasHandlers(extensions.ReasoningStart) {
+		m.Subscribe(func(e Event) {
+			if ev, ok := e.(ReasoningStartEvent); ok {
+				_, _ = runner.Emit(extensions.ReasoningStartEvent{ID: ev.ID})
+			}
+		})
+	}
+
+	if runner.HasHandlers(extensions.Warnings) {
+		m.Subscribe(func(e Event) {
+			if ev, ok := e.(WarningsEvent); ok {
+				_, _ = runner.Emit(extensions.WarningsEvent{Warnings: ev.Warnings})
+			}
+		})
+	}
+
+	if runner.HasHandlers(extensions.Source) {
+		m.Subscribe(func(e Event) {
+			if ev, ok := e.(SourceEvent); ok {
+				_, _ = runner.Emit(extensions.SourceEvent{
+					SourceType: ev.SourceType,
+					ID:         ev.ID,
+					URL:        ev.URL,
+					Title:      ev.Title,
+				})
+			}
+		})
+	}
+
+	if runner.HasHandlers(extensions.Error) {
+		m.Subscribe(func(e Event) {
+			if ev, ok := e.(ErrorEvent); ok {
+				_, _ = runner.Emit(extensions.ErrorEvent{Error: ev.Error.Error()})
+			}
+		})
+	}
+
+	if runner.HasHandlers(extensions.Retry) {
+		m.Subscribe(func(e Event) {
+			if ev, ok := e.(RetryEvent); ok {
+				_, _ = runner.Emit(extensions.RetryEvent{
+					Attempt: ev.Attempt,
+					Error:   ev.Error.Error(),
+				})
+			}
+		})
+	}
+
+	// --- PrepareStep hook ---
+	// Extension PrepareStep → SDK PrepareStep hook.
+	// Same pattern as ContextPrepare: convert LLMMessage ↔ ContextMessage.
+	if runner.HasHandlers(extensions.PrepareStep) {
+		m.OnPrepareStep(HookPriorityNormal, func(h PrepareStepHook) *PrepareStepResult {
+			// Convert LLM message slice to extension ContextMessage slice.
+			extMsgs := make([]extensions.ContextMessage, len(h.Messages))
+			for i, msg := range h.Messages {
+				var sb strings.Builder
+				for _, part := range msg.Content {
+					if tp, ok := part.(LLMTextPart); ok {
+						sb.WriteString(tp.Text)
+					}
+				}
+				extMsgs[i] = extensions.ContextMessage{
+					Index:   i,
+					Role:    string(msg.Role),
+					Content: sb.String(),
+				}
+			}
+
+			result, _ := runner.Emit(extensions.PrepareStepEvent{
+				StepNumber: h.StepNumber,
+				Messages:   extMsgs,
+			})
+			r, ok := result.(extensions.PrepareStepResult)
+			if !ok || r.Messages == nil {
+				return nil
+			}
+
+			// Rebuild LLM message slice from extension result.
+			rebuilt := make([]LLMMessage, 0, len(r.Messages))
+			for _, cm := range r.Messages {
+				if cm.Index >= 0 && cm.Index < len(h.Messages) {
+					rebuilt = append(rebuilt, h.Messages[cm.Index])
+				} else {
+					role := LLMRoleUser
+					switch cm.Role {
+					case "assistant":
+						role = LLMRoleAssistant
+					case "system":
+						role = LLMRoleSystem
+					case "tool":
+						role = LLMRoleTool
+					}
+					rebuilt = append(rebuilt, LLMMessage{
+						Role:    role,
+						Content: []LLMMessagePart{LLMTextPart{Text: cm.Content}},
+					})
+				}
+			}
+
+			return &PrepareStepResult{Messages: rebuilt}
+		})
+	}
 }
diff --git a/pkg/kit/hooks.go b/pkg/kit/hooks.go
index e122f269..a22af13b 100644
--- a/pkg/kit/hooks.go
+++ b/pkg/kit/hooks.go
@@ -121,6 +121,32 @@ type BeforeCompactResult struct {
 	Summary string
 }
 
+// PrepareStepHook is the input for hooks that fire between steps within a
+// multi-step agent turn, with full message replacement capability. This is
+// the most powerful interception point — it fires after the existing steering
+// logic (if any) and before the messages are sent to the LLM.
+//
+// Use cases:
+//   - Transforming tool results (e.g. converting image tool results to FilePart
+//     user messages for vision models that don't support media in tool results)
+//   - Dynamic tool filtering per step
+//   - Mid-turn context injection beyond simple steering
+//   - Custom stop conditions that inspect message history
+type PrepareStepHook struct {
+	// StepNumber is the zero-based step index within the current turn.
+	StepNumber int
+	// Messages is the current context window that will be sent to the LLM.
+	// This includes any steering messages already injected in this step.
+	Messages []LLMMessage
+}
+
+// PrepareStepResult can replace the context window between steps.
+type PrepareStepResult struct {
+	// Messages replaces the entire context window for this step. If nil,
+	// the original messages (including any steering) are used unchanged.
+	Messages []LLMMessage
+}
+
 // ---------------------------------------------------------------------------
 // Generic hook registry with priority ordering
 // ---------------------------------------------------------------------------
@@ -248,6 +274,19 @@ func (m *Kit) OnBeforeCompact(p HookPriority, h func(BeforeCompactHook) *BeforeC
 	return m.beforeCompact.register(p, h)
 }
 
+// OnPrepareStep registers a hook that fires between steps within a multi-step
+// agent turn, after steering messages are injected and before the messages are
+// sent to the LLM. Return a non-nil PrepareStepResult with Messages to replace
+// the entire context window for this step. Hooks execute in priority order;
+// the first non-nil result wins. Returns an unregister function.
+//
+// This is the most powerful interception point in the agent lifecycle. It
+// enables patterns like transforming tool results, dynamic tool filtering,
+// and mid-turn context injection.
+func (m *Kit) OnPrepareStep(p HookPriority, h func(PrepareStepHook) *PrepareStepResult) func() {
+	return m.prepareStep.register(p, h)
+}
+
 // ---------------------------------------------------------------------------
 // Tool wrapping via hooks
 // ---------------------------------------------------------------------------
diff --git a/pkg/kit/hooks_test.go b/pkg/kit/hooks_test.go
index 4c318ce9..26250e63 100644
--- a/pkg/kit/hooks_test.go
+++ b/pkg/kit/hooks_test.go
@@ -538,3 +538,75 @@ func TestKit_HookMethodsExist(t *testing.T) {
 	u3()
 	u4()
 }
+
+// TestPrepareStepHookRegistry verifies registration and execution of PrepareStep hooks.
+func TestPrepareStepHookRegistry(t *testing.T) {
+	hr := newHookRegistry[PrepareStepHook, PrepareStepResult]()
+
+	// Register a hook that appends a message.
+	hr.register(HookPriorityNormal, func(h PrepareStepHook) *PrepareStepResult {
+		if h.StepNumber == 0 {
+			// On step 0, prepend a system message.
+			newMsgs := make([]LLMMessage, 0, len(h.Messages)+1)
+			newMsgs = append(newMsgs, fantasy.NewSystemMessage("injected"))
+			newMsgs = append(newMsgs, h.Messages...)
+			return &PrepareStepResult{Messages: newMsgs}
+		}
+		return nil // No modification for other steps.
+	})
+
+	// Test step 0 — should modify messages.
+	input := PrepareStepHook{
+		StepNumber: 0,
+		Messages:   []LLMMessage{fantasy.NewUserMessage("hello")},
+	}
+	result := hr.run(input)
+	if result == nil {
+		t.Fatal("expected non-nil result for step 0")
+	}
+	if len(result.Messages) != 2 {
+		t.Fatalf("expected 2 messages, got %d", len(result.Messages))
+	}
+	if result.Messages[0].Role != fantasy.MessageRoleSystem {
+		t.Errorf("expected system message first, got role %q", result.Messages[0].Role)
+	}
+
+	// Test step 1 — should return nil (no modification).
+	input.StepNumber = 1
+	result = hr.run(input)
+	if result != nil {
+		t.Errorf("expected nil result for step 1, got %+v", result)
+	}
+}
+
+// TestPrepareStepHookPriority verifies that PrepareStep hooks respect priority ordering.
+func TestPrepareStepHookPriority(t *testing.T) {
+	hr := newHookRegistry[PrepareStepHook, PrepareStepResult]()
+
+	var order []string
+
+	// Low priority — should run second.
+	hr.register(HookPriorityLow, func(_ PrepareStepHook) *PrepareStepResult {
+		order = append(order, "low")
+		return nil
+	})
+
+	// High priority — should run first and win.
+	hr.register(HookPriorityHigh, func(h PrepareStepHook) *PrepareStepResult {
+		order = append(order, "high")
+		return &PrepareStepResult{Messages: h.Messages}
+	})
+
+	input := PrepareStepHook{
+		StepNumber: 0,
+		Messages:   []LLMMessage{fantasy.NewUserMessage("test")},
+	}
+	result := hr.run(input)
+
+	if result == nil {
+		t.Fatal("expected non-nil result")
+	}
+	if len(order) != 1 || order[0] != "high" {
+		t.Errorf("expected [high] (first non-nil wins), got %v", order)
+	}
+}
diff --git a/pkg/kit/kit.go b/pkg/kit/kit.go
index ca72f768..2ced985d 100644
--- a/pkg/kit/kit.go
+++ b/pkg/kit/kit.go
@@ -66,6 +66,7 @@ type Kit struct {
 	afterTurn       *hookRegistry[AfterTurnHook, AfterTurnResult]
 	contextPrepare  *hookRegistry[ContextPrepareHook, ContextPrepareResult]
 	beforeCompact   *hookRegistry[BeforeCompactHook, BeforeCompactResult]
+	prepareStep     *hookRegistry[PrepareStepHook, PrepareStepResult]
 
 	// lastInputTokens stores the API-reported input token count from the
 	// most recent turn. Used by GetContextStats() to return accurate usage
@@ -1368,6 +1369,7 @@ func New(ctx context.Context, opts *Options) (*Kit, error) {
 	afterTurn := newHookRegistry[AfterTurnHook, AfterTurnResult]()
 	contextPrepare := newHookRegistry[ContextPrepareHook, ContextPrepareResult]()
 	beforeCompact := newHookRegistry[BeforeCompactHook, BeforeCompactResult]()
+	prepareStep := newHookRegistry[PrepareStepHook, PrepareStepResult]()
 
 	// Build agent setup options, pulling CLI-specific fields when available.
 	// Pass the pre-built ProviderConfig and scalar viper snapshots so
@@ -1461,6 +1463,7 @@ func New(ctx context.Context, opts *Options) (*Kit, error) {
 		afterTurn:             afterTurn,
 		contextPrepare:        contextPrepare,
 		beforeCompact:         beforeCompact,
+		prepareStep:           prepareStep,
 	}
 
 	// Bridge extension events to SDK hooks.
@@ -1901,21 +1904,21 @@ func (m *Kit) generate(ctx context.Context, messages []fantasy.Message) (*agent.
 		return sr, err
 	})
 
-	return m.agent.GenerateWithLoopAndStreaming(ctx, messages,
-		func(toolCallID, toolName, toolArgs string) {
+	return m.agent.GenerateWithCallbacks(ctx, messages, agent.GenerateCallbacks{
+		OnToolCall: func(toolCallID, toolName, toolArgs string) {
 			m.events.emit(ToolCallEvent{
 				ToolCallID: toolCallID, ToolName: toolName, ToolKind: toolKindFor(toolName),
 				ToolArgs: toolArgs, ParsedArgs: parseToolArgs(toolArgs),
 			})
 		},
-		func(toolCallID, toolName, toolArgs string, isStarting bool) {
+		OnToolExecution: func(toolCallID, toolName, toolArgs string, isStarting bool) {
 			if isStarting {
 				m.events.emit(ToolExecutionStartEvent{ToolCallID: toolCallID, ToolName: toolName, ToolKind: toolKindFor(toolName), ToolArgs: toolArgs})
 			} else {
 				m.events.emit(ToolExecutionEndEvent{ToolCallID: toolCallID, ToolName: toolName, ToolKind: toolKindFor(toolName)})
 			}
 		},
-		func(toolCallID, toolName, toolArgs, resultText, metadata string, isError bool) {
+		OnToolResult: func(toolCallID, toolName, toolArgs, resultText, metadata string, isError bool) {
 			evt := ToolResultEvent{
 				ToolCallID: toolCallID, ToolName: toolName, ToolKind: toolKindFor(toolName),
 				ToolArgs: toolArgs, ParsedArgs: parseToolArgs(toolArgs),
@@ -1929,17 +1932,17 @@ func (m *Kit) generate(ctx context.Context, messages []fantasy.Message) (*agent.
 			}
 			m.events.emit(evt)
 		},
-		func(content string) {
+		OnResponse: func(content string) {
 			m.events.emit(ResponseEvent{Content: content})
 		},
-		func(content string) {
+		OnToolCallContent: func(content string) {
 			m.events.emit(ToolCallContentEvent{Content: content})
 		},
 		// <think> tag filtering: models like Qwen/DeepSeek wrap reasoning inside
 		// <think>...</think> tags in the regular text stream. We intercept those
 		// spans here and re-route them as ReasoningDeltaEvent/ReasoningCompleteEvent
 		// so callers always receive clean, tag-free text and structured reasoning.
-		func() func(chunk string) {
+		OnStreamingResponse: func() func(chunk string) {
 			const (
 				thinkOpen  = "<think>"
 				thinkClose = "</think>"
@@ -1975,14 +1978,13 @@ func (m *Kit) generate(ctx context.Context, messages []fantasy.Message) (*agent.
 				}
 			}
 		}(),
-		func(delta string) {
+		OnReasoningDelta: func(delta string) {
 			m.events.emit(ReasoningDeltaEvent{Delta: delta})
 		},
-		func() {
+		OnReasoningComplete: func() {
 			m.events.emit(ReasoningCompleteEvent{})
 		},
-		func(toolCallID, toolName, chunk string, isStderr bool) {
-			// Emit tool output chunk event for streaming bash output
+		OnToolOutput: func(toolCallID, toolName, chunk string, isStderr bool) {
 			m.events.emit(ToolOutputEvent{
 				ToolCallID: toolCallID,
 				ToolName:   toolName,
@@ -1991,18 +1993,13 @@ func (m *Kit) generate(ctx context.Context, messages []fantasy.Message) (*agent.
 			})
 		},
 		// Persist step messages incrementally so that progress survives
-		// crashes and long-running turns don't lose work. Each step's
-		// messages are persisted as a unit: for tool-calling steps this is
-		// the assistant message (with tool_use parts) + tool-role message
-		// (with tool_result parts) as a pair; for the final step it's the
-		// assistant text/reasoning message alone.
-		func(stepMessages []fantasy.Message) {
+		// crashes and long-running turns don't lose work.
+		OnStepMessages: func(stepMessages []fantasy.Message) {
 			for _, msg := range stepMessages {
 				_, _ = m.session.AppendMessage(msg)
 			}
 		},
-		func(inputTokens, outputTokens, cacheReadTokens, cacheCreationTokens int64) {
-			// Emit step usage event for real-time cost tracking
+		OnStepUsage: func(inputTokens, outputTokens, cacheReadTokens, cacheCreationTokens int64) {
 			if viper.GetBool("debug") {
 				log.Printf("DEBUG Kit.generate emitting StepUsageEvent: input=%d output=%d cacheRead=%d cacheCreate=%d",
 					inputTokens, outputTokens, cacheReadTokens, cacheCreationTokens,
@@ -2016,37 +2013,97 @@ func (m *Kit) generate(ctx context.Context, messages []fantasy.Message) (*agent.
 			})
 		},
 		// Password prompt handler for sudo commands
-		func(prompt string) (string, bool) {
-			// Emit event to TUI and wait for response via channel
+		OnPasswordPrompt: func(prompt string) (string, bool) {
 			responseCh := make(chan PasswordPromptResponse, 1)
 			m.events.emit(PasswordPromptEvent{
 				Prompt:     prompt,
 				ResponseCh: responseCh,
 			})
-			// Wait for response (TUI will send password or cancel)
 			resp := <-responseCh
 			return resp.Password, resp.Cancelled
 		},
-		// Tool call argument streaming — fire as the LLM generates tool arguments
-		func(toolCallID, toolName string) {
+		// Tool call argument streaming
+		OnToolCallStart: func(toolCallID, toolName string) {
 			m.events.emit(ToolCallStartEvent{
 				ToolCallID: toolCallID,
 				ToolName:   toolName,
 				ToolKind:   toolKindFor(toolName),
 			})
 		},
-		func(toolCallID, delta string) {
+		OnToolCallDelta: func(toolCallID, delta string) {
 			m.events.emit(ToolCallDeltaEvent{
 				ToolCallID: toolCallID,
 				Delta:      delta,
 			})
 		},
-		func(toolCallID string) {
+		OnToolCallEnd: func(toolCallID string) {
 			m.events.emit(ToolCallEndEvent{
 				ToolCallID: toolCallID,
 			})
 		},
-	)
+
+		// New callbacks for previously unwired Fantasy lifecycle events.
+		OnStepStart: func(stepNumber int) {
+			m.events.emit(StepStartEvent{StepNumber: stepNumber})
+		},
+		OnStepFinish: func(stepNumber int, hasToolCalls bool, finishReason string, usage fantasy.Usage) {
+			m.events.emit(StepFinishEvent{
+				StepNumber:   stepNumber,
+				HasToolCalls: hasToolCalls,
+				FinishReason: finishReason,
+				Usage:        usage,
+			})
+		},
+		OnTextStart: func(id string) {
+			m.events.emit(TextStartEvent{ID: id})
+		},
+		OnTextEnd: func(id string) {
+			m.events.emit(TextEndEvent{ID: id})
+		},
+		OnReasoningStart: func(id string) {
+			m.events.emit(ReasoningStartEvent{ID: id})
+		},
+		OnWarnings: func(warnings []string) {
+			m.events.emit(WarningsEvent{Warnings: warnings})
+		},
+		OnSource: func(sourceType, id, url, title string) {
+			m.events.emit(SourceEvent{
+				SourceType: sourceType,
+				ID:         id,
+				URL:        url,
+				Title:      title,
+			})
+		},
+		OnStreamFinish: func(usage fantasy.Usage, finishReason string) {
+			m.events.emit(StreamFinishEvent{
+				Usage:        usage,
+				FinishReason: finishReason,
+			})
+		},
+		OnError: func(err error) {
+			m.events.emit(ErrorEvent{Error: err})
+		},
+		OnRetry: func(attempt int, err error) {
+			m.events.emit(RetryEvent{Attempt: attempt, Error: err})
+		},
+		// PrepareStep hook — compose with steering (handled in agent layer)
+		// and then run SDK consumer hooks.
+		OnPrepareStep: func() agent.PrepareStepHandler {
+			if !m.prepareStep.hasHooks() {
+				return nil
+			}
+			return func(stepNumber int, messages []fantasy.Message) []fantasy.Message {
+				hookResult := m.prepareStep.run(PrepareStepHook{
+					StepNumber: stepNumber,
+					Messages:   messages,
+				})
+				if hookResult != nil && hookResult.Messages != nil {
+					return hookResult.Messages
+				}
+				return nil
+			}
+		}(),
+	})
 }
 
 // runTurn is the shared lifecycle for every prompt mode:
diff --git a/skills/kit-sdk/SKILL.md b/skills/kit-sdk/SKILL.md
index 47297d91..a136b3d6 100644
--- a/skills/kit-sdk/SKILL.md
+++ b/skills/kit-sdk/SKILL.md
@@ -281,7 +281,7 @@ host.OnToolOutput(func(e kit.ToolOutputEvent) {
     // Streaming bash output chunks
 })
 
-host.OnStreaming(func(e kit.MessageUpdateEvent) {
+host.OnMessageUpdate(func(e kit.MessageUpdateEvent) {
     fmt.Print(e.Chunk) // real-time text streaming
 })
 
@@ -296,8 +296,64 @@ host.OnTurnStart(func(e kit.TurnStartEvent) {
 host.OnTurnEnd(func(e kit.TurnEndEvent) {
     // e.Response, e.Error, e.StopReason
 })
+
+host.OnStepStart(func(e kit.StepStartEvent) {
+    // e.StepNumber — which LLM call step (1-based)
+})
+
+host.OnStepFinish(func(e kit.StepFinishEvent) {
+    // e.StepNumber, e.HasToolCalls, e.FinishReason, e.Usage (LLMUsage)
+})
+
+host.OnWarnings(func(e kit.WarningsEvent) {
+    for _, w := range e.Warnings {
+        log.Printf("warning: %s", w)
+    }
+})
+
+host.OnError(func(e kit.ErrorEvent) {
+    log.Printf("agent error: %v", e.Error)
+})
+
+host.OnRetry(func(e kit.RetryEvent) {
+    log.Printf("retrying (attempt %d): %v", e.Attempt, e.Error)
+})
+
+host.OnTextStart(func(e kit.TextStartEvent) {
+    // e.ID — content block ID
+})
+
+host.OnTextEnd(func(e kit.TextEndEvent) {
+    // e.ID — content block ID
+})
+
+host.OnReasoningStart(func(e kit.ReasoningStartEvent) {
+    // e.ID — reasoning block ID
+})
+
+host.OnSource(func(e kit.SourceEvent) {
+    // e.SourceType, e.ID, e.URL, e.Title
+})
+
+host.OnStreamFinish(func(e kit.StreamFinishEvent) {
+    // e.Usage (LLMUsage), e.FinishReason
+})
+
+// Additional typed subscribers for previously generic-only events:
+host.OnMessageStart(func(e kit.MessageStartEvent) {})
+host.OnMessageEnd(func(e kit.MessageEndEvent) { /* e.Content */ })
+host.OnReasoningDelta(func(e kit.ReasoningDeltaEvent) { /* e.Delta */ })
+host.OnReasoningComplete(func(e kit.ReasoningCompleteEvent) {})
+host.OnToolExecutionStart(func(e kit.ToolExecutionStartEvent) { /* e.ToolCallID, e.ToolName, e.ToolKind, e.ToolArgs */ })
+host.OnToolExecutionEnd(func(e kit.ToolExecutionEndEvent) { /* e.ToolCallID, e.ToolName, e.ToolKind */ })
+host.OnToolCallContent(func(e kit.ToolCallContentEvent) { /* e.Content */ })
+host.OnStepUsage(func(e kit.StepUsageEvent) { /* e.InputTokens, e.OutputTokens, e.CacheReadTokens, e.CacheWriteTokens */ })
+host.OnCompaction(func(e kit.CompactionEvent) { /* e.Summary, e.OriginalTokens, e.CompactedTokens, ... */ })
+host.OnSteerConsumed(func(e kit.SteerConsumedEvent) { /* e.Count */ })
 ```
 
+> **Rename note:** `OnStreaming` has been renamed to `OnMessageUpdate`. The old `OnStreaming` name is kept as a deprecated alias for one release cycle.
+
 ### Generic subscriber (receives all events)
 
 ```go
@@ -336,6 +392,16 @@ unsub := host.Subscribe(func(e kit.Event) {
 | `reasoning_delta` | `ReasoningDeltaEvent` | `Delta` |
 | `step_usage` | `StepUsageEvent` | `InputTokens`, `OutputTokens`, `CacheReadTokens`, `CacheWriteTokens` |
 | `steer_consumed` | `SteerConsumedEvent` | `Count` |
+| `step_start` | `StepStartEvent` | `StepNumber` |
+| `step_finish` | `StepFinishEvent` | `StepNumber`, `HasToolCalls`, `FinishReason`, `Usage` |
+| `text_start` | `TextStartEvent` | `ID` |
+| `text_end` | `TextEndEvent` | `ID` |
+| `reasoning_start` | `ReasoningStartEvent` | `ID` |
+| `warnings` | `WarningsEvent` | `Warnings` |
+| `source` | `SourceEvent` | `SourceType`, `ID`, `URL`, `Title` |
+| `stream_finish` | `StreamFinishEvent` | `Usage`, `FinishReason` |
+| `error` | `ErrorEvent` | `Error` |
+| `retry` | `RetryEvent` | `Attempt`, `Error` |
 | `password_prompt` | `PasswordPromptEvent` | `Prompt`, `ResponseCh` |
 
 **Tool call streaming lifecycle**: `ToolCallStartEvent` → `ToolCallDeltaEvent` (repeated) → `ToolCallEndEvent` → `ToolCallEvent` → `ToolExecutionStartEvent` → `ToolOutputEvent` (optional, repeated) → `ToolExecutionEndEvent` → `ToolResultEvent`
@@ -421,6 +487,20 @@ host.OnAfterTurn(kit.HookPriorityNormal, func(h kit.AfterTurnHook) {
 })
 ```
 
+### PrepareStep — intercept/replace messages before each LLM call
+
+```go
+host.OnPrepareStep(kit.HookPriorityNormal, func(h kit.PrepareStepHook) *kit.PrepareStepResult {
+    // h.StepNumber  — which step in the current turn (1-based)
+    // h.Messages    — []kit.LLMMessage being sent to the LLM
+    // Return nil to pass through unchanged, or replace messages:
+    modified := filterSensitiveMessages(h.Messages)
+    return &kit.PrepareStepResult{Messages: modified}
+})
+```
+
+`PrepareStep` fires before every LLM API call within a turn (including tool-call loop iterations). Unlike `ContextPrepare` (which operates on the full context window once per turn), `PrepareStep` runs per-step and sees the messages that include the latest tool results.
+
 ### ContextPrepare — filter/inject context window
 
 ```go
@@ -1172,7 +1252,7 @@ for {
 ### Pattern: Streaming output to terminal
 
 ```go
-host.OnStreaming(func(e kit.MessageUpdateEvent) {
+host.OnMessageUpdate(func(e kit.MessageUpdateEvent) {
     fmt.Print(e.Chunk)
 })
 response, _ := host.Prompt(ctx, "Write a poem")
diff --git a/www/pages/sdk/callbacks.md b/www/pages/sdk/callbacks.md
index 87d34815..c3c50400 100644
--- a/www/pages/sdk/callbacks.md
+++ b/www/pages/sdk/callbacks.md
@@ -20,7 +20,7 @@ unsub2 := host.OnToolResult(func(event kit.ToolResultEvent) {
 })
 defer unsub2()
 
-unsub3 := host.OnStreaming(func(event kit.MessageUpdateEvent) {
+unsub3 := host.OnMessageUpdate(func(event kit.MessageUpdateEvent) {
     fmt.Print(event.Chunk)
 })
 defer unsub3()
@@ -116,6 +116,24 @@ host.OnAfterTurn(kit.HookPriorityNormal, func(h kit.AfterTurnHook) {
 })
 ```
 
+### PrepareStep — intercept messages between steps
+
+The most powerful hook — fires between steps within a multi-step agent turn, after any steering messages are injected and before messages are sent to the LLM. Can replace the entire context window.
+
+```go
+host.OnPrepareStep(kit.HookPriorityNormal, func(h kit.PrepareStepHook) *kit.PrepareStepResult {
+    // h.StepNumber — zero-based step index within the turn
+    // h.Messages   — current context window (includes any steering)
+    
+    // Example: transform tool results with images into user messages
+    modified := transformImageToolResults(h.Messages)
+    return &kit.PrepareStepResult{Messages: modified}
+    // Return nil to pass through unchanged
+})
+```
+
+Use cases: transforming tool results (e.g., image data for vision models), dynamic tool filtering per step, mid-turn context injection, custom stop conditions.
+
 ### Hook priorities
 
 ```go
@@ -128,19 +146,41 @@ Lower values run first. First non-nil result wins.
 
 ## All event types
 
-| Event | Description |
-|-------|-------------|
-| `ToolCallStartEvent` | LLM began generating tool call arguments (tool name known, args streaming) |
-| `ToolCallDeltaEvent` | Streamed JSON fragment of tool call arguments |
-| `ToolCallEndEvent` | Tool argument streaming complete, before execution begins |
-| `ToolCallEvent` | Tool call fully parsed and about to execute |
-| `ToolResultEvent` | Tool execution completed with result |
-| `ToolOutputEvent` | Streaming output chunk from tool (e.g., bash stdout/stderr) |
-| `MessageUpdateEvent` | Streaming text chunk from LLM |
-| `ResponseEvent` | Final response received |
-| `TurnStartEvent` | Agent turn started |
-| `TurnEndEvent` | Agent turn completed |
-| `PasswordPromptEvent` | Sudo command needs password (respond via `ResponseCh`) |
+| Event | Typed Subscriber | Description |
+|-------|-----------------|-------------|
+| `TurnStartEvent` | `OnTurnStart` | Agent turn started |
+| `TurnEndEvent` | `OnTurnEnd` | Agent turn completed |
+| `MessageStartEvent` | `OnMessageStart` | New assistant message begins |
+| `MessageUpdateEvent` | `OnMessageUpdate` | Streaming text chunk from LLM |
+| `MessageEndEvent` | `OnMessageEnd` | Assistant message complete |
+| `ToolCallStartEvent` | `OnToolCallStart` | LLM began generating tool call arguments |
+| `ToolCallDeltaEvent` | `OnToolCallDelta` | Streamed JSON fragment of tool call arguments |
+| `ToolCallEndEvent` | `OnToolCallEnd` | Tool argument streaming complete |
+| `ToolCallEvent` | `OnToolCall` | Tool call fully parsed, about to execute |
+| `ToolExecutionStartEvent` | `OnToolExecutionStart` | Tool begins executing |
+| `ToolExecutionEndEvent` | `OnToolExecutionEnd` | Tool finishes executing |
+| `ToolResultEvent` | `OnToolResult` | Tool execution completed with result |
+| `ToolCallContentEvent` | `OnToolCallContent` | Text content alongside tool calls |
+| `ToolOutputEvent` | `OnToolOutput` | Streaming output chunk from tool (e.g., bash) |
+| `ResponseEvent` | `OnResponse` | Final response received |
+| `ReasoningStartEvent` | `OnReasoningStart` | LLM begins reasoning/thinking |
+| `ReasoningDeltaEvent` | `OnReasoningDelta` | Streaming reasoning/thinking chunk |
+| `ReasoningCompleteEvent` | `OnReasoningComplete` | Reasoning/thinking finished |
+| `StepStartEvent` | `OnStepStart` | New LLM call begins within a turn |
+| `StepFinishEvent` | `OnStepFinish` | Step completes (with usage, finish reason, tool call info) |
+| `StepUsageEvent` | `OnStepUsage` | Per-step token usage |
+| `StreamFinishEvent` | `OnStreamFinish` | Per-step stream completes (with usage + finish reason) |
+| `TextStartEvent` | `OnTextStart` | LLM begins text content generation |
+| `TextEndEvent` | `OnTextEnd` | LLM finishes text content generation |
+| `WarningsEvent` | `OnWarnings` | LLM provider returned warnings |
+| `SourceEvent` | `OnSource` | LLM referenced a source (e.g., web search) |
+| `ErrorEvent` | `OnError` | Agent-level error during streaming |
+| `RetryEvent` | `OnRetry` | LLM request retried after transient error |
+| `CompactionEvent` | `OnCompaction` | Conversation compacted |
+| `SteerConsumedEvent` | `OnSteerConsumed` | Steering messages injected into turn |
+| `PasswordPromptEvent` | — | Sudo command needs password (respond via `ResponseCh`) |
+
+> **Note:** `OnStreaming` is a deprecated alias for `OnMessageUpdate` and will be removed in a future release.
 
 ## Subagent event monitoring
 
diff --git a/www/pages/sdk/overview.md b/www/pages/sdk/overview.md
index d3cee101..7a22c93c 100644
--- a/www/pages/sdk/overview.md
+++ b/www/pages/sdk/overview.md
@@ -143,7 +143,7 @@ host.OnToolResult(func(event kit.ToolResultEvent) {
     fmt.Println("Tool result:", event.Name)
 })
 
-host.OnStreaming(func(event kit.MessageUpdateEvent) {
+host.OnMessageUpdate(func(event kit.MessageUpdateEvent) {
     fmt.Print(event.Chunk)
 })
 ```