fix(models): add gpt-5.4 reasoning level support with auto-adjustment

Adds 'none' thinking level to support OpenAI gpt-5.4 models which use
'reasoning_effort: none' instead of 'minimal'. Includes validation and
auto-adjustment when switching models with incompatible levels.

- Add ThinkingNone constant mapping to ReasoningEffortNone
- Add IsValidThinkingLevelForModel() with gpt-5.4 detection
- Add SuggestThinkingLevelFallback() for level migration
- Auto-adjust thinking level on model switch with user notification
- Update all docs to include 'none' in valid levels

Fixes #11

.kit/extensions/subagent-monitor.go

@@ -13,6 +13,8 @@
 // - No channels in maps (Yaegi panics on range over map[string]chan)
 // - All ctx.* calls guarded with nil checks
 // - Simple data structures only
+// - The extension runner serializes handler calls per-extension, so
+//   concurrent subagent events cannot race on this shared state.
 package main
 
 import (
@@ -43,7 +45,8 @@ const (
 )
 
 // ---------------------------------------------------------------------------
-// Package-level state - all simple types
+// Package-level state — safe because the runner serializes all handler
+// invocations for the same extension (per-extension reentrant mutex).
 // ---------------------------------------------------------------------------
 
 var (
@@ -282,8 +285,8 @@ func Init(api ext.API) {
 
 		submonPushWidget()
 
-		// Remove the entry immediately (no goroutine to avoid races)
-		newEntries := submonEntries[:0]
+		// Remove the entry — build a new slice to avoid aliasing bugs
+		newEntries := make([]*submonEntry, 0, len(submonEntries))
 		for _, en := range submonEntries {
 			if en.callID != e.ToolCallID {
 				newEntries = append(newEntries, en)

.kit/prompts/feature-request.md

@@ -2,7 +2,7 @@
 description: Create a feature request using the GitHub template
 ---
 
-Create a feature request for the Kit repository. The user wants to request: $@
+Create a feature request for the Kit repository. The user wants to request: $+
 
 ## Feature Request Template
 
@@ -16,7 +16,7 @@ This prompt uses the `feature_request` GitHub template which requires:
 
 ## Steps
 
-1. **Understand the request** from `$@`
+1. **Understand the request** from `$+`
    - What capability is missing?
    - What would the ideal behavior look like?
 

.kit/prompts/file-issue.md

@@ -2,7 +2,7 @@
 description: File a GitHub issue using the appropriate template
 ---
 
-File a GitHub issue for the Kit repository. The user wants to create an issue about: $@
+File a GitHub issue for the Kit repository. The user wants to create an issue about: $+
 
 ## Issue Templates Available
 
@@ -16,7 +16,7 @@ This repository has structured issue templates. You MUST use the appropriate tem
 
 ## Steps
 
-1. **Determine the issue type** from `$@`:
+1. **Determine the issue type** from `$+`:
    - Bug → use `--template bug_report`
    - Feature → use `--template feature_request`  
    - Documentation → use `--template documentation`

.kit/prompts/new-prompt.md

@@ -2,7 +2,7 @@
 description: Scaffold a new prompt template in .kit/prompts/
 ---
 
-Create a new kit prompt template. The user wants a prompt that does: $@
+Create a new kit prompt template. The user wants a prompt that does: $+
 
 ## What a prompt template is
 
@@ -23,19 +23,21 @@ $1 $2 etc. for positional arguments.
 - **Filename** → slug: `commit-push.md` becomes `/commit-push`
 - **Frontmatter**: only `description` is recognised; keep it under ~80 chars
 - **Body**: plain markdown; the full text is submitted as the user's message when the template fires
-- **Arguments**: `$@` expands to everything the user typed after the slash command name;
+- **Arguments**: `$+` expands to everything the user typed after the slash command name
+  (requires at least one argument); `$@` is the same but allows zero arguments;
   `$1`, `$2` for individual positional args; omit entirely if no arguments are needed
 
 ## Steps
 
-1. **Understand the workflow** the user described in `$@` — ask a clarifying question if the intent is ambiguous
+1. **Understand the workflow** the user described in `$+` — ask a clarifying question if the intent is ambiguous
 2. **Choose a filename**: short, lowercase, hyphen-separated, descriptive (e.g. `code-review.md`)
 3. **Write the description**: one sentence, imperative, fits in autocomplete
 4. **Draft the body**:
    - Open with a single sentence stating the goal
    - Use `## Steps` for multi-step workflows; use plain prose for simple prompts
    - Be specific: name commands, flags, and file paths where relevant
-   - End with `$@` on its own line if the user might want to pass context or a hint; omit if the prompt is self-contained
+   - End with `$+` on its own line if the user must pass context; use `$@` if arguments
+     are optional; omit if the prompt is self-contained
 5. **Write the file** to `.kit/prompts/<slug>.md`
 6. **Confirm** by showing the final file content and the slash command that activates it
 

README.md

@@ -18,7 +18,8 @@ A powerful, extensible AI coding agent CLI with multi-provider support, built-in
 ## Features
 
 - **Multi-Provider LLM Support**: Anthropic, OpenAI, Google Gemini, Ollama, Azure OpenAI, AWS Bedrock, OpenRouter, and more
-- **Built-in Core Tools**: bash, read, write, edit, grep, find, ls, subagent - no MCP overhead
+- **Built-in Core Tools**: bash (with interactive sudo password prompt), read, write, edit, grep, find, ls, subagent - no MCP overhead
+- **Smart @ Attachments**: Binary files auto-detected via MIME type, MCP resources via `@mcp:server:uri`
 - **MCP Integration**: Connect external MCP servers for expanded capabilities
 - **Extension System**: Write custom tools, commands, widgets, and UI modifications in Go
 - **Theming**: 22 built-in color themes (KITT, Catppuccin, Dracula, Nord, etc.) with runtime switching, persistence, and custom theme files
@@ -125,8 +126,13 @@ model: anthropic/claude-sonnet-latest
 max-tokens: 4096
 temperature: 0.7
 stream: true
+thinking-level: off       # off, none, minimal, low, medium, high
 ```
 
+All of the above keys can also be set programmatically via the SDK
+(`kit.Options.MaxTokens`, `Options.Temperature`, `Options.ThinkingLevel`, etc.)
+without touching config files — see [SDK options](#with-options).
+
 ### Environment Variables
 
 ```bash
@@ -186,12 +192,14 @@ mcpServers:
 --no-prompt-templates    Disable prompt template loading
 
 # Generation parameters
---max-tokens             Maximum tokens in response (default: 4096)
+--max-tokens             Maximum tokens in response (default: 8192, auto-raised up to 32768 for models with larger known output limits)
 --temperature            Randomness 0.0-1.0 (default: 0.7)
 --top-p                  Nucleus sampling 0.0-1.0 (default: 0.95)
 --top-k                  Limit top K tokens (default: 40)
 --stop-sequences         Custom stop sequences (comma-separated)
---thinking-level         Extended thinking level: off, minimal, low, medium, high (default: off)
+--frequency-penalty      Penalize frequent tokens 0.0-2.0 (default: 0.0)
+--presence-penalty       Penalize present tokens 0.0-2.0 (default: 0.0)
+--thinking-level         Extended thinking level: off, none, minimal, low, medium, high (default: off)
 
 # System
 --config                 Config file path (default: ~/.kit.yml)
@@ -317,39 +325,40 @@ kit -e examples/extensions/minimal.go
 
 See the `examples/extensions/` directory:
 
-- `minimal.go` - Clean UI with custom footer
-- `auto-commit.go` - Auto-commit on shutdown
-- `bookmark.go` - Bookmark conversations
-- `branded-output.go` - Branded output rendering
-- `compact-notify.go` - Notification on compaction
-- `confirm-destructive.go` - Confirm destructive operations
-- `context-inject.go` - Inject context into conversations
-- `conversation-manager.go` - **NEW** Tree navigation, branch summarization, and fresh context loops
-- `custom-editor-demo.go` - Vim-like modal editor
-- `dev-reload.go` - Development live-reload
-- `header-footer-demo.go` - Custom headers and footers
-- `inline-bash.go` - Inline bash execution
-- `interactive-shell.go` - Interactive shell integration
-- `kit-kit.go` - Kit-in-Kit (sub-agent spawning)
-- `lsp-diagnostics.go` - LSP diagnostic integration
-- `notify.go` - Desktop notifications
-- `overlay-demo.go` - Modal dialogs
-- `permission-gate.go` - Permission gating for tools
-- `pirate.go` - Pirate-themed personality
-- `plan-mode.go` - Read-only planning mode
-- `project-rules.go` - Project-specific rules
-- `prompt-demo.go` - Interactive prompts (select/confirm/input)
-- `prompt-templates.go` - **NEW** Frontmatter-driven templates with model switching and skill injection
-- `protected-paths.go` - Path protection for sensitive files
-- `subagent-widget.go` - Multi-agent orchestration with status widget
-- `subagent-test.go` - Subagent testing utilities
-- `summarize.go` - Conversation summarization
-- `tool-logger.go` - Log all tool calls
-- `neon-theme.go` - Custom theme registration and switching
-- `tool-renderer-demo.go` - Custom tool call rendering
-- `widget-status.go` - Persistent status widgets
+- [`minimal.go`](examples/extensions/minimal.go) - Clean UI with custom footer
+- [`auto-commit.go`](examples/extensions/auto-commit.go) - Auto-commit on shutdown
+- [`bookmark.go`](examples/extensions/bookmark.go) - Bookmark conversations
+- [`branded-output.go`](examples/extensions/branded-output.go) - Branded output rendering
+- [`bridge-demo.go`](examples/extensions/bridge_demo.go) - Bridged SDK API demo (tree navigation, skills, templates, model resolution)
+- [`compact-notify.go`](examples/extensions/compact-notify.go) - Notification on compaction
+- [`confirm-destructive.go`](examples/extensions/confirm-destructive.go) - Confirm destructive operations
+- [`context-inject.go`](examples/extensions/context-inject.go) - Inject context into conversations
+- [`conversation-manager.go`](examples/extensions/conversation-manager.go) - **NEW** Tree navigation, branch summarization, and fresh context loops
+- [`custom-editor-demo.go`](examples/extensions/custom-editor-demo.go) - Vim-like modal editor
+- [`dev-reload.go`](examples/extensions/dev-reload.go) - Development live-reload
+- [`header-footer-demo.go`](examples/extensions/header-footer-demo.go) - Custom headers and footers
+- [`inline-bash.go`](examples/extensions/inline-bash.go) - Inline bash execution
+- [`interactive-shell.go`](examples/extensions/interactive-shell.go) - Interactive shell integration
+- [`kit-kit.go`](examples/extensions/kit-kit.go) - Kit-in-Kit (sub-agent spawning)
+- [`lsp-diagnostics.go`](examples/extensions/lsp-diagnostics.go) - LSP diagnostic integration
+- [`notify.go`](examples/extensions/notify.go) - Desktop notifications
+- [`overlay-demo.go`](examples/extensions/overlay-demo.go) - Modal dialogs
+- [`permission-gate.go`](examples/extensions/permission-gate.go) - Permission gating for tools
+- [`pirate.go`](examples/extensions/pirate.go) - Pirate-themed personality
+- [`plan-mode.go`](examples/extensions/plan-mode.go) - Read-only planning mode
+- [`project-rules.go`](examples/extensions/project-rules.go) - Project-specific rules
+- [`prompt-demo.go`](examples/extensions/prompt-demo.go) - Interactive prompts (select/confirm/input)
+- [`prompt-templates.go`](examples/extensions/prompt-templates.go) - **NEW** Frontmatter-driven templates with model switching and skill injection
+- [`protected-paths.go`](examples/extensions/protected-paths.go) - Path protection for sensitive files
+- [`subagent-widget.go`](examples/extensions/subagent-widget.go) - Multi-agent orchestration with status widget
+- [`subagent-test.go`](examples/extensions/subagent-test.go) - Subagent testing utilities
+- [`summarize.go`](examples/extensions/summarize.go) - Conversation summarization
+- [`tool-logger.go`](examples/extensions/tool-logger.go) - Log all tool calls
+- [`neon-theme.go`](examples/extensions/neon-theme.go) - Custom theme registration and switching
+- [`tool-renderer-demo.go`](examples/extensions/tool-renderer-demo.go) - Custom tool call rendering
+- [`widget-status.go`](examples/extensions/widget-status.go) - Persistent status widgets
 
-Also see `.kit/extensions/go-edit-lint.go` (in this repo) for a project-local extension example that runs gopls and golangci-lint on Go file edits.
+Also see [`.kit/extensions/go-edit-lint.go`](.kit/extensions/go-edit-lint.go) (in this repo) for a project-local extension example that runs gopls and golangci-lint on Go file edits.
 
 ### Loading Extensions
 
@@ -406,7 +415,7 @@ func TestMyExtension(t *testing.T) {
 - `AssertPrinted()`, `AssertPrintedContains()` — Verify output
 - `AssertToolRegistered()`, `AssertCommandRegistered()` — Verify registration
 
-See `examples/extensions/tool-logger_test.go` for a complete example with 14 test cases covering tool calls, input handling, and session lifecycle.
+See [`examples/extensions/tool-logger_test.go`](examples/extensions/tool-logger_test.go) for a complete example with 14 test cases covering tool calls, input handling, and session lifecycle.
 
 ### Prompt Templates
 
@@ -428,10 +437,13 @@ Focus on $1 specifically.
 
 **Argument placeholders:**
 - `$1`, `$2`, etc. — Individual arguments
-- `$@` or `$ARGUMENTS` — All arguments
+- `$@` or `$ARGUMENTS` — All arguments (zero or more)
+- `$+` — All arguments (one or more required; error if none given)
 - `${@:2}` — Arguments from position 2 onwards
 - `${@:1:3}` — 3 arguments starting at position 1
 
+Placeholders inside fenced code blocks (```) and inline code spans are ignored.
+
 Disable templates with `--no-prompt-templates` or load a specific template with `--prompt-template <name>`.
 
 ## Session Management
@@ -480,6 +492,15 @@ During an interactive session, use these slash commands:
 | `/fork` | Fork to new session from an earlier message |
 | `/new` | Start a fresh session |
 
+### Keyboard Shortcuts
+
+| Shortcut | Description |
+|----------|-------------|
+| `Ctrl+X e` | Open `$VISUAL`/`$EDITOR` to compose or edit your prompt |
+| `Ctrl+X s` | Steer — inject a system-level instruction mid-turn |
+| `ESC ESC` | Cancel the current operation (tool call or streaming) |
+| `↑` / `↓` | Navigate prompt history |
+
 ## Go SDK
 
 Embed Kit in your Go applications:
@@ -525,6 +546,20 @@ host, err := kit.New(ctx, &kit.Options{
     Streaming:    true,
     Quiet:        true,
 
+    // Generation parameters (override env/config/per-model defaults)
+    MaxTokens:        16384,             // 0 = auto-resolve (env → config → per-model → 8192 floor)
+    ThinkingLevel:    "medium",          // "off", "none", "minimal", "low", "medium", "high"
+    Temperature:      ptr(float32(0.2)), // pointer so 0.0 != unset; nil = provider default
+    TopP:             nil,                // nil = leave provider/per-model default
+    TopK:             nil,
+    FrequencyPenalty: nil,
+    PresencePenalty:  nil,
+
+    // Provider configuration (override env/config without reaching into viper)
+    ProviderAPIKey: "sk-...",                      // "" = use config / provider env var
+    ProviderURL:    "https://proxy.internal/v1",   // "" = provider default
+    TLSSkipVerify:  false,                         // only takes effect when true
+
     // Session options
     SessionPath:  "./session.jsonl",  // Open specific session
     Continue:     true,                // Resume most recent session
@@ -545,6 +580,46 @@ host, err := kit.New(ctx, &kit.Options{
 })
 ```
 
+**Generation & provider fields** (added in v0.55+) let SDK consumers configure
+Kit entirely in-code without `viper.Set()` workarounds or shipping a `.kit.yml`.
+Precedence is `Options` > `KIT_*` env vars > `.kit.yml` > per-model defaults
+(`modelSettings` / `customModels`) > provider-level defaults. Sampling params
+are pointer types so explicit `0.0` is distinguishable from "leave alone"; a
+non-zero `MaxTokens` suppresses automatic right-sizing the same way `--max-tokens`
+does on the CLI.
+
+### MCP OAuth (remote MCP servers)
+
+When a remote MCP server returns 401, Kit runs the full OAuth flow (dynamic
+client registration → PKCE → token exchange → persistence) but delegates the
+user-facing step — showing the authorization URL and receiving the callback —
+to an `MCPAuthHandler` that you pass explicitly via `Options.MCPAuthHandler`.
+If nil, OAuth is disabled and the authorization-required error surfaces to the
+caller; the SDK never auto-opens a browser or binds a localhost port.
+
+```go
+// CLI/TUI apps: opens the system browser + prints status to stderr.
+authHandler, _ := kit.NewCLIMCPAuthHandler()
+defer authHandler.Close()
+
+host, _ := kit.New(ctx, &kit.Options{
+    MCPAuthHandler: authHandler,
+})
+
+// Custom UX: reuse the SDK's port + callback server, supply your own
+// presentation via OnAuthURL (TUI modal, QR code, web redirect, etc.).
+//   h, _ := kit.NewDefaultMCPAuthHandler()
+//   h.OnAuthURL = func(server, authURL string) { myUI.Show(server, authURL) }
+//
+// Full control (web apps, daemons): implement kit.MCPAuthHandler yourself —
+// no localhost binding, no side effects.
+```
+
+Tokens are persisted to `$XDG_CONFIG_HOME/.kit/mcp_tokens.json` by default; swap
+in a custom `MCPTokenStoreFactory` for encrypted, DB-backed, or in-memory
+storage. See the [SDK options docs](/sdk/options#mcp-oauth-authorization) for
+the full matrix.
+
 ### Custom Tools
 
 Create custom tools with automatic schema generation — no external dependencies needed:

cmd/auth.go

@@ -11,6 +11,7 @@ import (
 
 	"charm.land/huh/v2"
 	"github.com/mark3labs/kit/internal/auth"
+	"github.com/mark3labs/kit/internal/ui"
 	kit "github.com/mark3labs/kit/pkg/kit"
 	"github.com/spf13/cobra"
 )
@@ -54,9 +55,13 @@ Available providers:
   - anthropic: Anthropic Claude API (OAuth)
   - openai:    OpenAI ChatGPT Plus/Pro (Codex OAuth)
 
-Example:
+Flags:
+  --set-default   Set this provider's default model as the system default
+
+Examples:
   kit auth login anthropic
-  kit auth login openai`,
+  kit auth login openai
+  kit auth login openai --set-default`,
 	Args: cobra.ExactArgs(1),
 	RunE: runAuthLogin,
 }
@@ -99,10 +104,43 @@ Example:
 	RunE: runAuthStatus,
 }
 
+var (
+	loginSetDefault bool
+)
+
+// defaultModels maps providers to their recommended default models.
+// These are used when --set-default flag is passed to auth login.
+var defaultModels = map[string]string{
+	"anthropic": "anthropic/claude-sonnet-4-5-20250929",
+	"openai":    "openai/gpt-5.4",
+}
+
+// setDefaultModelIfRequested sets the default model for the given provider
+// if the --set-default flag was provided.
+func setDefaultModelIfRequested(provider string) error {
+	if !loginSetDefault {
+		return nil
+	}
+
+	model, ok := defaultModels[provider]
+	if !ok {
+		return fmt.Errorf("no default model configured for provider: %s", provider)
+	}
+
+	if err := ui.SaveModelPreference(model); err != nil {
+		return fmt.Errorf("failed to save model preference: %w", err)
+	}
+
+	fmt.Printf("\n✓ Set default model to: %s\n", model)
+	return nil
+}
+
 func init() {
 	authCmd.AddCommand(authLoginCmd)
 	authCmd.AddCommand(authLogoutCmd)
 	authCmd.AddCommand(authStatusCmd)
+
+	authLoginCmd.Flags().BoolVar(&loginSetDefault, "set-default", false, "Set this provider's default model as the system default after login")
 }
 
 func runAuthLogin(cmd *cobra.Command, args []string) error {
@@ -288,6 +326,17 @@ func loginAnthropic() error {
 	fmt.Println("\n🎉 Your OAuth credentials will now be used for Anthropic API calls.")
 	fmt.Println("💡 You can check your authentication status with: kit auth status")
 
+	// Set default model if requested
+	if err := setDefaultModelIfRequested("anthropic"); err != nil {
+		return err
+	}
+
+	// Remind users how to set this as default if they didn't use --set-default
+	if !loginSetDefault {
+		fmt.Println("\n💡 To set Anthropic as your default model, run:")
+		fmt.Println("   kit auth login anthropic --set-default")
+	}
+
 	return nil
 }
 
@@ -454,6 +503,17 @@ func loginOpenAI() error {
 	fmt.Println("\n🎉 Your OAuth credentials will now be used for OpenAI API calls.")
 	fmt.Println("💡 You can check your authentication status with: kit auth status")
 
+	// Set default model if requested
+	if err := setDefaultModelIfRequested("openai"); err != nil {
+		return err
+	}
+
+	// Remind users how to set this as default if they didn't use --set-default
+	if !loginSetDefault {
+		fmt.Println("\n💡 To set OpenAI as your default model, run:")
+		fmt.Println("   kit auth login openai --set-default")
+	}
+
 	return nil
 }
 

cmd/root.go

@@ -19,6 +19,7 @@ import (
 	"github.com/mark3labs/kit/internal/prompts"
 	"github.com/mark3labs/kit/internal/ui"
 	"github.com/mark3labs/kit/internal/ui/commands"
+	"github.com/mark3labs/kit/internal/ui/progress"
 	"github.com/mark3labs/kit/internal/watcher"
 	kit "github.com/mark3labs/kit/pkg/kit"
 	"github.com/spf13/cobra"
@@ -33,13 +34,18 @@ var (
 	providerURL      string
 	providerAPIKey   string
 	debugMode        bool
-	positionalPrompt string // set by processPositionalArgs from CLI positional args
-	quietFlag        bool
-	jsonFlag         bool
-	noExitFlag       bool
-	maxSteps         int
-	streamFlag       bool // Enable streaming output
-	autoCompactFlag  bool // Enable auto-compaction near context limit
+	positionalPrompt string        // set by processPositionalArgs from CLI positional args
+	positionalFiles  []ui.FilePart // binary @file parts from processPositionalArgs
+
+	// MCP resource callbacks, set in runNormalMode, consumed by runInteractiveModeBubbleTea.
+	mcpGetResources   func() []ui.FileSuggestion
+	mcpResourceReader ui.MCPResourceReader
+	quietFlag         bool
+	jsonFlag          bool
+	noExitFlag        bool
+	maxSteps          int
+	streamFlag        bool // Enable streaming output
+	autoCompactFlag   bool // Enable auto-compaction near context limit
 
 	// Session management
 	sessionPath string
@@ -291,14 +297,14 @@ func init() {
 	flags.BoolVar(&noPromptTemplates, "no-prompt-templates", false, "disable prompt template discovery")
 
 	// Model generation parameters
-	flags.IntVar(&maxTokens, "max-tokens", 4096, "maximum number of tokens in the response")
+	flags.IntVar(&maxTokens, "max-tokens", 8192, "maximum number of output tokens per response (auto-raised up to 32768 for models with higher known output limits; see internal/models/embedded_models.json)")
 	flags.Float32Var(&temperature, "temperature", 0.7, "controls randomness in responses (0.0-1.0)")
 	flags.Float32Var(&topP, "top-p", 0.95, "controls diversity via nucleus sampling (0.0-1.0)")
 	flags.Int32Var(&topK, "top-k", 40, "controls diversity by limiting top K tokens to sample from")
 	flags.Float32Var(&frequencyPenalty, "frequency-penalty", 0.0, "penalizes tokens based on frequency of appearance (0.0-2.0)")
 	flags.Float32Var(&presencePenalty, "presence-penalty", 0.0, "penalizes tokens based on whether they have appeared (0.0-2.0)")
 	flags.StringSliceVar(&stopSequences, "stop-sequences", nil, "custom stop sequences (comma-separated)")
-	flags.StringVar(&thinkingLevel, "thinking-level", "off", "extended thinking level: off, minimal, low, medium, high")
+	flags.StringVar(&thinkingLevel, "thinking-level", "off", "extended thinking level: off, none, minimal, low, medium, high")
 
 	// Ollama-specific parameters
 	flags.Int32Var(&numGPU, "num-gpu-layers", -1, "number of model layers to offload to GPU for Ollama models (-1 for auto-detect)")
@@ -338,12 +344,14 @@ func init() {
 }
 
 // processPositionalArgs separates positional CLI arguments into @file
-// attachments and prompt text. File content is read and prepended to
-// positionalPrompt so the agent receives it. Positional args are the primary
-// way to run non-interactive mode:
+// attachments and prompt text. Text file content is read and prepended to
+// positionalPrompt; binary files (images, audio) are stored in positionalFiles
+// for multimodal submission. Positional args are the primary way to run
+// non-interactive mode:
 //
 //	kit "Explain this codebase"
 //	kit @code.ts @test.ts "Review these files"
+//	kit @screenshot.png "What's in this image?"
 func processPositionalArgs(args []string) {
 	cwd, err := os.Getwd()
 	if err != nil {
@@ -362,14 +370,17 @@ func processPositionalArgs(args []string) {
 	}
 
 	// Build file content prefix from @file arguments.
+	// Text files are XML-wrapped inline; binary files become multimodal parts.
 	var fileContent strings.Builder
 	for _, token := range fileTokens {
-		expanded := ui.ProcessFileAttachments(token, cwd)
-		if expanded != token {
-			// File was resolved — add it.
-			fileContent.WriteString(expanded)
+		result := ui.ProcessFileAttachments(token, cwd)
+		if result.ProcessedText != token {
+			// Text file was resolved — add it.
+			fileContent.WriteString(result.ProcessedText)
 			fileContent.WriteString("\n\n")
 		}
+		// Collect binary file parts for multimodal submission.
+		positionalFiles = append(positionalFiles, result.FileParts...)
 	}
 
 	// Combine: positional prompt text is appended to any existing --prompt
@@ -753,10 +764,11 @@ func runNormalMode(ctx context.Context) error {
 			}
 		},
 		CLI: &kit.CLIOptions{
-			MCPConfig:         mcpConfig,
-			ShowSpinner:       true,
-			SpinnerFunc:       spinnerFunc,
-			UseBufferedLogger: true,
+			MCPConfig:          mcpConfig,
+			ShowSpinner:        true,
+			SpinnerFunc:        spinnerFunc,
+			UseBufferedLogger:  true,
+			ProgressReaderFunc: progress.NewProgressReadCloser,
 		},
 	}
 	if resumeFlag {
@@ -1704,6 +1716,81 @@ func runNormalMode(ctx context.Context) error {
 		return kitInstance.GetMCPToolCount()
 	}
 
+	// Build MCP prompt provider callbacks for the TUI.
+	// Convert kit.MCPPrompt → ui.MCPPromptInfo for the UI layer.
+	convertMCPPromptsForUI := func() []ui.MCPPromptInfo {
+		prompts := kitInstance.ListMCPPrompts()
+		if len(prompts) == 0 {
+			return nil
+		}
+		result := make([]ui.MCPPromptInfo, len(prompts))
+		for i, p := range prompts {
+			args := make([]ui.MCPPromptArgInfo, len(p.Arguments))
+			for j, a := range p.Arguments {
+				args[j] = ui.MCPPromptArgInfo{
+					Name:        a.Name,
+					Description: a.Description,
+					Required:    a.Required,
+				}
+			}
+			result[i] = ui.MCPPromptInfo{
+				Name:        p.Name,
+				Description: p.Description,
+				Arguments:   args,
+				ServerName:  p.ServerName,
+			}
+		}
+		return result
+	}
+	mcpPrompts := convertMCPPromptsForUI()
+	getMCPPrompts := func() []ui.MCPPromptInfo {
+		return convertMCPPromptsForUI()
+	}
+	expandMCPPrompt := func(serverName, promptName string, args map[string]string) (*ui.MCPPromptExpandResult, error) {
+		result, err := kitInstance.GetMCPPrompt(context.Background(), serverName, promptName, args)
+		if err != nil {
+			return nil, err
+		}
+		msgs := make([]ui.MCPPromptMessageInfo, len(result.Messages))
+		for i, m := range result.Messages {
+			msgs[i] = ui.MCPPromptMessageInfo{
+				Role:      m.Role,
+				Content:   m.Content,
+				FileParts: m.FileParts,
+			}
+		}
+		return &ui.MCPPromptExpandResult{Messages: msgs}, nil
+	}
+
+	// MCP resource callbacks for @ autocomplete and submit-time resolution.
+	getMCPResources := func() []ui.FileSuggestion {
+		resources := kitInstance.ListMCPResources()
+		suggestions := make([]ui.FileSuggestion, len(resources))
+		for i, r := range resources {
+			suggestions[i] = ui.FileSuggestion{
+				RelPath:        r.Name,
+				IsMCPResource:  true,
+				MCPServerName:  r.ServerName,
+				MCPResourceURI: r.URI,
+				MCPMIMEType:    r.MIMEType,
+				Score:          100, // default score, filtered later
+			}
+		}
+		return suggestions
+	}
+	mcpResourceReaderFn := func(serverName, uri string) (string, []byte, string, bool, error) {
+		content, err := kitInstance.ReadMCPResource(context.Background(), serverName, uri)
+		if err != nil {
+			return "", nil, "", false, err
+		}
+		return content.Text, content.BlobData, content.MIMEType, content.IsBlob, nil
+	}
+
+	// Store MCP resource callbacks at package level for consumption by
+	// runInteractiveModeBubbleTea and runNonInteractiveModeApp.
+	mcpGetResources = getMCPResources
+	mcpResourceReader = mcpResourceReaderFn
+
 	// Start a goroutine that waits for background MCP tool loading to
 	// complete and notifies the TUI so it can refresh tool names and counts.
 	if len(mcpConfig.MCPServers) > 0 {
@@ -1840,7 +1927,7 @@ func runNormalMode(ctx context.Context) error {
 
 	// Check if running in non-interactive mode
 	if positionalPrompt != "" {
-		return runNonInteractiveModeApp(ctx, appInstance, cli, positionalPrompt, quietFlag, jsonFlag, noExitFlag, modelName, parsedProvider, kitInstance.GetLoadingMessage(), serverNames, toolNames, mcpToolCount, extensionToolCount, usageTracker, extCommands, promptTemplates, contextPaths, skillItems, getPromptTemplates, getSkillItems, getToolNames, getMCPToolCount, getWidgets, getHeader, getFooter, getToolRenderer, getEditorInterceptor, getUIVisibility, getStatusBarEntries, emitBeforeFork, emitBeforeSessionSwitch, getGlobalShortcuts, getExtensionCommands, setModelForUI, emitModelChangeForUI, kitInstance.IsReasoningModel(), kitInstance.GetThinkingLevel(), setThinkingLevelForUI, switchSessionForUI, reloadExtensionsForUI)
+		return runNonInteractiveModeApp(ctx, appInstance, cli, positionalPrompt, quietFlag, jsonFlag, noExitFlag, modelName, parsedProvider, kitInstance.GetLoadingMessage(), serverNames, toolNames, mcpToolCount, extensionToolCount, usageTracker, extCommands, promptTemplates, contextPaths, skillItems, getPromptTemplates, getSkillItems, getToolNames, getMCPToolCount, mcpPrompts, getMCPPrompts, expandMCPPrompt, getWidgets, getHeader, getFooter, getToolRenderer, getEditorInterceptor, getUIVisibility, getStatusBarEntries, emitBeforeFork, emitBeforeSessionSwitch, getGlobalShortcuts, getExtensionCommands, setModelForUI, emitModelChangeForUI, kitInstance.IsReasoningModel(), kitInstance.GetThinkingLevel(), setThinkingLevelForUI, switchSessionForUI, reloadExtensionsForUI)
 	}
 
 	// Quiet mode is not allowed in interactive mode
@@ -1848,7 +1935,7 @@ func runNormalMode(ctx context.Context) error {
 		return fmt.Errorf("--quiet requires a prompt")
 	}
 
-	return runInteractiveModeBubbleTea(ctx, appInstance, modelName, parsedProvider, kitInstance.GetLoadingMessage(), serverNames, toolNames, mcpToolCount, extensionToolCount, usageTracker, extCommands, promptTemplates, contextPaths, skillItems, getPromptTemplates, getSkillItems, getToolNames, getMCPToolCount, getWidgets, getHeader, getFooter, getToolRenderer, getEditorInterceptor, getUIVisibility, getStatusBarEntries, emitBeforeFork, emitBeforeSessionSwitch, getGlobalShortcuts, getExtensionCommands, setModelForUI, emitModelChangeForUI, kitInstance.IsReasoningModel(), kitInstance.GetThinkingLevel(), setThinkingLevelForUI, switchSessionForUI, reloadExtensionsForUI, startupExtensionMessages)
+	return runInteractiveModeBubbleTea(ctx, appInstance, modelName, parsedProvider, kitInstance.GetLoadingMessage(), serverNames, toolNames, mcpToolCount, extensionToolCount, usageTracker, extCommands, promptTemplates, contextPaths, skillItems, getPromptTemplates, getSkillItems, getToolNames, getMCPToolCount, mcpPrompts, getMCPPrompts, expandMCPPrompt, getWidgets, getHeader, getFooter, getToolRenderer, getEditorInterceptor, getUIVisibility, getStatusBarEntries, emitBeforeFork, emitBeforeSessionSwitch, getGlobalShortcuts, getExtensionCommands, setModelForUI, emitModelChangeForUI, kitInstance.IsReasoningModel(), kitInstance.GetThinkingLevel(), setThinkingLevelForUI, switchSessionForUI, reloadExtensionsForUI, startupExtensionMessages)
 }
 
 // runNonInteractiveModeApp executes a single prompt via the app layer and exits,
@@ -1861,15 +1948,33 @@ func runNormalMode(ctx context.Context) error {
 //
 // When --no-exit is set, after the prompt completes the interactive BubbleTea
 // TUI is started so the user can continue the conversation.
-func runNonInteractiveModeApp(ctx context.Context, appInstance *app.App, cli *ui.CLI, prompt string, quiet, jsonOutput, noExit bool, modelName, providerName, loadingMessage string, serverNames, toolNames []string, mcpToolCount, extensionToolCount int, usageTracker *ui.UsageTracker, extCommands []commands.ExtensionCommand, promptTemplates []*prompts.PromptTemplate, contextPaths []string, skillItems []ui.SkillItem, getPromptTemplates func() []*prompts.PromptTemplate, getSkillItems func() []ui.SkillItem, getToolNames func() []string, getMCPToolCount func() int, getWidgets func(string) []ui.WidgetData, getHeader, getFooter func() *ui.WidgetData, getToolRenderer func(string) *ui.ToolRendererData, getEditorInterceptor func() *ui.EditorInterceptor, getUIVisibility func() *ui.UIVisibility, getStatusBarEntries func() []ui.StatusBarEntryData, emitBeforeFork func(string, bool, string) (bool, string), emitBeforeSessionSwitch func(string) (bool, string), getGlobalShortcuts func() map[string]func(), getExtensionCommands func() []commands.ExtensionCommand, setModel func(string) error, emitModelChange func(string, string, string), isReasoningModel bool, thinkingLevel string, setThinkingLevel func(string) error, switchSession func(string) error, reloadExtensions func() error) error {
+func runNonInteractiveModeApp(ctx context.Context, appInstance *app.App, cli *ui.CLI, prompt string, quiet, jsonOutput, noExit bool, modelName, providerName, loadingMessage string, serverNames, toolNames []string, mcpToolCount, extensionToolCount int, usageTracker *ui.UsageTracker, extCommands []commands.ExtensionCommand, promptTemplates []*prompts.PromptTemplate, contextPaths []string, skillItems []ui.SkillItem, getPromptTemplates func() []*prompts.PromptTemplate, getSkillItems func() []ui.SkillItem, getToolNames func() []string, getMCPToolCount func() int, mcpPrompts []ui.MCPPromptInfo, getMCPPrompts func() []ui.MCPPromptInfo, expandMCPPrompt func(string, string, map[string]string) (*ui.MCPPromptExpandResult, error), getWidgets func(string) []ui.WidgetData, getHeader, getFooter func() *ui.WidgetData, getToolRenderer func(string) *ui.ToolRendererData, getEditorInterceptor func() *ui.EditorInterceptor, getUIVisibility func() *ui.UIVisibility, getStatusBarEntries func() []ui.StatusBarEntryData, emitBeforeFork func(string, bool, string) (bool, string), emitBeforeSessionSwitch func(string) (bool, string), getGlobalShortcuts func() map[string]func(), getExtensionCommands func() []commands.ExtensionCommand, setModel func(string) error, emitModelChange func(string, string, string), isReasoningModel bool, thinkingLevel string, setThinkingLevel func(string) error, switchSession func(string) error, reloadExtensions func() error) error {
 	// Expand @file references in the prompt before sending to the agent.
+	// Text files are XML-inlined; binary files are extracted as multimodal parts.
+	var fileParts []kit.LLMFilePart
 	if cwd, err := os.Getwd(); err == nil {
-		prompt = ui.ProcessFileAttachments(prompt, cwd)
+		result := ui.ProcessFileAttachments(prompt, cwd, mcpResourceReader)
+		prompt = result.ProcessedText
+		for _, fp := range result.FileParts {
+			fileParts = append(fileParts, kit.LLMFilePart{
+				Filename:  fp.Filename,
+				Data:      fp.Data,
+				MediaType: fp.MediaType,
+			})
+		}
+	}
+	// Also include binary files from processPositionalArgs (CLI @file args).
+	for _, fp := range positionalFiles {
+		fileParts = append(fileParts, kit.LLMFilePart{
+			Filename:  fp.Filename,
+			Data:      fp.Data,
+			MediaType: fp.MediaType,
+		})
 	}
 
 	if jsonOutput {
 		// JSON mode: no intermediate display, structured JSON output.
-		result, err := appInstance.RunOnceResult(ctx, prompt)
+		result, err := appInstance.RunOnceResultWithFiles(ctx, prompt, fileParts)
 		if err != nil {
 			writeJSONError(err)
 			return err
@@ -1881,7 +1986,7 @@ func runNonInteractiveModeApp(ctx context.Context, appInstance *app.App, cli *ui
 		fmt.Println(string(data))
 	} else if quiet {
 		// Quiet mode: no intermediate display, just print final response.
-		if err := appInstance.RunOnce(ctx, prompt); err != nil {
+		if err := appInstance.RunOnceWithFiles(ctx, prompt, fileParts); err != nil {
 			return err
 		}
 	} else if cli != nil {
@@ -1890,21 +1995,21 @@ func runNonInteractiveModeApp(ctx context.Context, appInstance *app.App, cli *ui
 
 		// Route events through the shared CLI event handler.
 		eventHandler := ui.NewCLIEventHandler(cli, modelName)
-		err := appInstance.RunOnceWithDisplay(ctx, prompt, eventHandler.Handle)
+		err := appInstance.RunOnceWithDisplayAndFiles(ctx, prompt, eventHandler.Handle, fileParts)
 		eventHandler.Cleanup()
 		if err != nil {
 			return err
 		}
 	} else {
 		// No CLI available (shouldn't happen in non-quiet mode, but be safe).
-		if err := appInstance.RunOnce(ctx, prompt); err != nil {
+		if err := appInstance.RunOnceWithFiles(ctx, prompt, fileParts); err != nil {
 			return err
 		}
 	}
 
 	// If --no-exit was requested, hand off to the interactive TUI.
 	if noExit {
-		return runInteractiveModeBubbleTea(ctx, appInstance, modelName, providerName, loadingMessage, serverNames, toolNames, mcpToolCount, extensionToolCount, usageTracker, extCommands, promptTemplates, contextPaths, skillItems, getPromptTemplates, getSkillItems, getToolNames, getMCPToolCount, getWidgets, getHeader, getFooter, getToolRenderer, getEditorInterceptor, getUIVisibility, getStatusBarEntries, emitBeforeFork, emitBeforeSessionSwitch, getGlobalShortcuts, getExtensionCommands, setModel, emitModelChange, isReasoningModel, thinkingLevel, setThinkingLevel, switchSession, reloadExtensions, nil)
+		return runInteractiveModeBubbleTea(ctx, appInstance, modelName, providerName, loadingMessage, serverNames, toolNames, mcpToolCount, extensionToolCount, usageTracker, extCommands, promptTemplates, contextPaths, skillItems, getPromptTemplates, getSkillItems, getToolNames, getMCPToolCount, mcpPrompts, getMCPPrompts, expandMCPPrompt, getWidgets, getHeader, getFooter, getToolRenderer, getEditorInterceptor, getUIVisibility, getStatusBarEntries, emitBeforeFork, emitBeforeSessionSwitch, getGlobalShortcuts, getExtensionCommands, setModel, emitModelChange, isReasoningModel, thinkingLevel, setThinkingLevel, switchSession, reloadExtensions, nil)
 	}
 
 	return nil
@@ -2002,7 +2107,7 @@ func writeJSONError(err error) {
 //  4. Calls program.Run() which blocks until the user quits (Ctrl+C or /quit).
 //
 // SetupCLI is not used for interactive mode; the TUI (AppModel) handles its own rendering.
-func runInteractiveModeBubbleTea(_ context.Context, appInstance *app.App, modelName, providerName, loadingMessage string, serverNames, toolNames []string, mcpToolCount, extensionToolCount int, usageTracker *ui.UsageTracker, extCommands []commands.ExtensionCommand, promptTemplates []*prompts.PromptTemplate, contextPaths []string, skillItems []ui.SkillItem, getPromptTemplates func() []*prompts.PromptTemplate, getSkillItems func() []ui.SkillItem, getToolNames func() []string, getMCPToolCount func() int, getWidgets func(string) []ui.WidgetData, getHeader, getFooter func() *ui.WidgetData, getToolRenderer func(string) *ui.ToolRendererData, getEditorInterceptor func() *ui.EditorInterceptor, getUIVisibility func() *ui.UIVisibility, getStatusBarEntries func() []ui.StatusBarEntryData, emitBeforeFork func(string, bool, string) (bool, string), emitBeforeSessionSwitch func(string) (bool, string), getGlobalShortcuts func() map[string]func(), getExtensionCommands func() []commands.ExtensionCommand, setModel func(string) error, emitModelChange func(string, string, string), isReasoningModel bool, thinkingLevel string, setThinkingLevel func(string) error, switchSession func(string) error, reloadExtensions func() error, startupExtensionMessages []string) error {
+func runInteractiveModeBubbleTea(_ context.Context, appInstance *app.App, modelName, providerName, loadingMessage string, serverNames, toolNames []string, mcpToolCount, extensionToolCount int, usageTracker *ui.UsageTracker, extCommands []commands.ExtensionCommand, promptTemplates []*prompts.PromptTemplate, contextPaths []string, skillItems []ui.SkillItem, getPromptTemplates func() []*prompts.PromptTemplate, getSkillItems func() []ui.SkillItem, getToolNames func() []string, getMCPToolCount func() int, mcpPrompts []ui.MCPPromptInfo, getMCPPrompts func() []ui.MCPPromptInfo, expandMCPPrompt func(string, string, map[string]string) (*ui.MCPPromptExpandResult, error), getWidgets func(string) []ui.WidgetData, getHeader, getFooter func() *ui.WidgetData, getToolRenderer func(string) *ui.ToolRendererData, getEditorInterceptor func() *ui.EditorInterceptor, getUIVisibility func() *ui.UIVisibility, getStatusBarEntries func() []ui.StatusBarEntryData, emitBeforeFork func(string, bool, string) (bool, string), emitBeforeSessionSwitch func(string) (bool, string), getGlobalShortcuts func() map[string]func(), getExtensionCommands func() []commands.ExtensionCommand, setModel func(string) error, emitModelChange func(string, string, string), isReasoningModel bool, thinkingLevel string, setThinkingLevel func(string) error, switchSession func(string) error, reloadExtensions func() error, startupExtensionMessages []string) error {
 	// Redirect all log output (stdlib and charm) to a file so that log
 	// messages don't write to stderr and corrupt the TUI. Bubble Tea
 	// captures stdout for rendering; any stray stderr output from
@@ -2041,6 +2146,9 @@ func runInteractiveModeBubbleTea(_ context.Context, appInstance *app.App, modelN
 		ExtensionCommands:        extCommands,
 		PromptTemplates:          promptTemplates,
 		GetPromptTemplates:       getPromptTemplates,
+		MCPPrompts:               mcpPrompts,
+		GetMCPPrompts:            getMCPPrompts,
+		ExpandMCPPrompt:          expandMCPPrompt,
 		ContextPaths:             contextPaths,
 		SkillItems:               skillItems,
 		GetSkillItems:            getSkillItems,
@@ -2064,6 +2172,8 @@ func runInteractiveModeBubbleTea(_ context.Context, appInstance *app.App, modelN
 		SwitchSession:            switchSession,
 		ReloadExtensions:         reloadExtensions,
 		ShowSessionPicker:        resumeFlag,
+		GetMCPResources:          mcpGetResources,
+		MCPResourceReader:        mcpResourceReader,
 	})
 
 	program := tea.NewProgram(appModel)

examples/extensions/inline-bash.go

@@ -10,13 +10,21 @@ import (
 	"kit/ext"
 )
 
+// re matches !{...} with non-greedy content.
+var re = regexp.MustCompile(`!\{([^}]+)\}`)
+
 // Init expands inline bash expressions in user prompts before they reach the
-// LLM. Text like !{git branch --show-current} is replaced with the command's
-// stdout.
+// LLM. Text like !{git rev-parse --abbrev-ref HEAD} is replaced with the
+// command's stdout.
+//
+// In interactive mode the expansion happens at submit time via an editor
+// interceptor, so the expanded text is also visible in the user message
+// block on screen. In non-interactive mode (CLI, script, queue) the
+// expansion happens via OnInput transform.
 //
 // Examples:
 //
-//	"Fix the tests on !{git branch --show-current}"
+//	"Fix the tests on !{git rev-parse --abbrev-ref HEAD}"
 //	  → "Fix the tests on main"
 //
 //	"The current directory is !{pwd}"
@@ -24,29 +32,59 @@ import (
 //
 // Usage: kit -e examples/extensions/inline-bash.go
 func Init(api ext.API) {
-	// Matches !{...} with non-greedy content.
-	re := regexp.MustCompile(`!\{([^}]+)\}`)
+	// ── Interactive mode: editor interceptor ──────────────────────────
+	// Intercept Enter / Ctrl+D so we can expand !{...} BEFORE the
+	// SubmitMsg is created. This ensures the expanded text appears in
+	// the user message block on screen as well as in the LLM prompt.
+	api.OnSessionStart(func(_ ext.SessionStartEvent, ctx ext.Context) {
+		if !ctx.Interactive {
+			return
+		}
+		ctx.SetEditor(ext.EditorConfig{
+			HandleKey: func(key string, currentText string) ext.EditorKeyAction {
+				if (key == "enter" || key == "ctrl+d") && re.MatchString(currentText) {
+					expanded := expand(currentText)
+					// Clear the textarea asynchronously — calling
+					// SetEditorText synchronously from inside Update()
+					// would deadlock the BubbleTea event loop.
+					go ctx.SetEditorText("")
+					return ext.EditorKeyAction{
+						Type:       ext.EditorKeySubmit,
+						SubmitText: expanded,
+					}
+				}
+				return ext.EditorKeyAction{Type: ext.EditorKeyPassthrough}
+			},
+		})
+	})
 
+	// ── Non-interactive fallback: OnInput transform ──────────────────
+	// For CLI, script, and queue sources the editor interceptor is not
+	// active, so we fall back to OnInput which still rewrites the
+	// prompt text sent to the LLM.
 	api.OnInput(func(ev ext.InputEvent, ctx ext.Context) *ext.InputResult {
-		if !re.MatchString(ev.Text) {
+		if ev.Source == "interactive" || !re.MatchString(ev.Text) {
 			return nil
 		}
 
-		expanded := re.ReplaceAllStringFunc(ev.Text, func(match string) string {
-			// Extract the command between !{ and }.
-			cmd := re.FindStringSubmatch(match)[1]
-			cmd = strings.TrimSpace(cmd)
-
-			out, err := exec.Command("bash", "-c", cmd).Output()
-			if err != nil {
-				return match // keep original on error
-			}
-			return strings.TrimSpace(string(out))
-		})
-
 		return &ext.InputResult{
 			Action: "transform",
-			Text:   expanded,
+			Text:   expand(ev.Text),
 		}
 	})
 }
+
+// expand replaces every !{cmd} in text with the command's stdout.
+// On error the original !{cmd} token is preserved.
+func expand(text string) string {
+	return re.ReplaceAllStringFunc(text, func(match string) string {
+		cmd := re.FindStringSubmatch(match)[1]
+		cmd = strings.TrimSpace(cmd)
+
+		out, err := exec.Command("bash", "-c", cmd).Output()
+		if err != nil {
+			return match // keep original on error
+		}
+		return strings.TrimSpace(string(out))
+	})
+}

examples/extensions/subagent-monitor_test.go

@@ -130,6 +130,58 @@ func TestSubagentMonitor_MultipleSubagents(t *testing.T) {
 	time.Sleep(100 * time.Millisecond)
 }
 
+// TestSubagentMonitor_ConcurrentSubagents verifies no panics when multiple
+// subagents emit events concurrently from different goroutines.
+func TestSubagentMonitor_ConcurrentSubagents(t *testing.T) {
+	harness := test.New(t)
+	harness.LoadFile("../../.kit/extensions/subagent-monitor.go")
+
+	_, err := harness.Emit(extensions.SessionStartEvent{SessionID: "test-session"})
+	if err != nil {
+		t.Fatalf("SessionStart should not error: %v", err)
+	}
+
+	// Start 5 subagents concurrently
+	done := make(chan struct{}, 5)
+	for i := range 5 {
+		go func(idx int) {
+			defer func() { done <- struct{}{} }()
+
+			callID := fmt.Sprintf("concurrent-%d", idx)
+			task := fmt.Sprintf("concurrent task %d", idx)
+
+			_, _ = harness.Emit(extensions.SubagentStartEvent{
+				ToolCallID: callID,
+				Task:       task,
+			})
+
+			// Emit many chunks rapidly
+			for j := range 20 {
+				_, _ = harness.Emit(extensions.SubagentChunkEvent{
+					ToolCallID: callID,
+					Task:       task,
+					ChunkType:  "text",
+					Content:    fmt.Sprintf("agent %d chunk %d", idx, j),
+				})
+			}
+
+			_, _ = harness.Emit(extensions.SubagentEndEvent{
+				ToolCallID: callID,
+				Task:       task,
+				Response:   "done",
+			})
+		}(i)
+	}
+
+	// Wait for all goroutines
+	for range 5 {
+		<-done
+	}
+
+	// Allow any final processing
+	time.Sleep(200 * time.Millisecond)
+}
+
 // TestSubagentMonitor_SessionShutdown verifies shutdown doesn't panic
 // even with nil ctx functions.
 func TestSubagentMonitor_SessionShutdown(t *testing.T) {

examples/extensions/sudo-handler.go

@@ -0,0 +1,153 @@
+//go:build ignore
+
+// sudo-handler.go - Extension to handle sudo password prompts securely
+//
+// This extension intercepts bash commands containing "sudo" and:
+// 1. Checks if sudo credentials are already cached (via sudo -n)
+// 2. If not cached, prompts the user for their password (with masking)
+// 3. Temporarily sets SUDO_PASSWORD environment variable for execution
+// 4. The bash tool automatically uses sudo -S -p '' to pipe the password
+//
+// Usage: kit -e examples/extensions/sudo-handler.go
+//
+// Security notes:
+// - Password is only stored in memory for the duration of the session
+// - Password is never logged or displayed
+// - Each session requires re-authentication (sudo -k is used)
+// - The SUDO_PASSWORD env var is set only during tool execution
+
+package main
+
+import (
+	"encoding/json"
+	"os"
+	"strings"
+	"sync"
+
+	"kit/ext"
+)
+
+var (
+	// cachedPassword stores the sudo password for the session
+	cachedPassword string
+	// hasCachedPassword tracks if we have a valid cached password
+	hasCachedPassword bool
+	// mu protects cached password access
+	mu sync.RWMutex
+)
+
+// Init sets up the sudo handler extension
+func Init(api ext.API) {
+	api.OnToolCall(func(tc ext.ToolCallEvent, ctx ext.Context) *ext.ToolCallResult {
+		if tc.ToolName != "bash" {
+			return nil
+		}
+
+		// Parse the command from tool input
+		var input struct {
+			Command string `json:"command"`
+		}
+		if err := json.Unmarshal([]byte(tc.Input), &input); err != nil {
+			return nil
+		}
+
+		// Check if command contains sudo
+		if !containsSudo(input.Command) {
+			return nil
+		}
+
+		// Check if we already have cached credentials
+		mu.RLock()
+		password := cachedPassword
+		hasCached := hasCachedPassword
+		mu.RUnlock()
+
+		if hasCached {
+			// Use cached password
+			os.Setenv("SUDO_PASSWORD", password)
+			return nil
+		}
+
+		// No cached password - prompt user
+		result := ctx.PromptInput(ext.PromptInputConfig{
+			Message:     "🔐 Sudo password required for:\n  " + truncateCommand(input.Command, 60),
+			Placeholder: "Enter your password",
+		})
+
+		if result.Cancelled {
+			return &ext.ToolCallResult{
+				Block:  true,
+				Reason: "Sudo password prompt cancelled by user",
+			}
+		}
+
+		if result.Value == "" {
+			return &ext.ToolCallResult{
+				Block:  true,
+				Reason: "No password provided",
+			}
+		}
+
+		// Cache the password for this session
+		mu.Lock()
+		cachedPassword = result.Value
+		hasCachedPassword = true
+		mu.Unlock()
+
+		// Set environment variable for the bash tool to use
+		os.Setenv("SUDO_PASSWORD", result.Value)
+
+		// Show confirmation (without revealing password)
+		ctx.PrintInfo("Sudo password cached for this session")
+
+		return nil
+	})
+
+	// Clear cached password when session ends
+	api.OnSessionShutdown(func(event ext.SessionShutdownEvent, ctx ext.Context) {
+		mu.Lock()
+		cachedPassword = ""
+		hasCachedPassword = false
+		mu.Unlock()
+		os.Unsetenv("SUDO_PASSWORD")
+	})
+}
+
+// containsSudo checks if the command contains sudo as a command (not in a string)
+func containsSudo(command string) bool {
+	// Simple check for sudo as a word, not inside quotes or as part of another word
+	lower := strings.ToLower(command)
+
+	// Check for sudo at start or after separators
+	patterns := []string{
+		"sudo ",
+		"sudo\t",
+		";sudo ",
+		"&& sudo ",
+		"|| sudo ",
+		"| sudo ",
+		"$(sudo ",
+		"`sudo ",
+	}
+
+	for _, pattern := range patterns {
+		if strings.Contains(lower, pattern) {
+			return true
+		}
+	}
+
+	// Check if command starts with sudo
+	if strings.HasPrefix(lower, "sudo ") {
+		return true
+	}
+
+	return false
+}
+
+// truncateCommand truncates a long command for display
+func truncateCommand(cmd string, maxLen int) string {
+	if len(cmd) <= maxLen {
+		return cmd
+	}
+	return cmd[:maxLen-3] + "..."
+}

go.mod

@@ -1,31 +1,32 @@
 module github.com/mark3labs/kit
 
-go 1.26.1
+go 1.26.2
 
 require (
 	charm.land/bubbles/v2 v2.1.0
-	charm.land/bubbletea/v2 v2.0.2
-	charm.land/fantasy v0.17.1
+	charm.land/bubbletea/v2 v2.0.5
+	charm.land/fantasy v0.17.2
 	charm.land/huh/v2 v2.0.3
-	charm.land/lipgloss/v2 v2.0.2
+	charm.land/lipgloss/v2 v2.0.3
 	github.com/alecthomas/chroma/v2 v2.23.1
 	github.com/atotto/clipboard v0.1.4
 	github.com/aymanbagabas/go-udiff v0.4.1
 	github.com/charmbracelet/fang v1.0.0
 	github.com/charmbracelet/log v1.0.0
 	github.com/charmbracelet/openai-go v0.0.0-20260319145158-d0740cc34266
-	github.com/charmbracelet/ultraviolet v0.0.0-20260330092749-0f94982c930b
+	github.com/charmbracelet/ultraviolet v0.0.0-20260414011438-8c69ec811b1e
+	github.com/charmbracelet/x/editor v0.2.0
 	github.com/clipperhouse/displaywidth v0.11.0
 	github.com/clipperhouse/uax29/v2 v2.7.0
 	github.com/coder/acp-go-sdk v0.6.3
 	github.com/fsnotify/fsnotify v1.9.0
 	github.com/indaco/herald v0.13.0
 	github.com/indaco/herald-md v0.3.0
-	github.com/mark3labs/mcp-go v0.47.1
+	github.com/mark3labs/mcp-go v0.48.0
 	github.com/spf13/cobra v1.10.2
 	github.com/spf13/viper v1.21.0
 	github.com/traefik/yaegi v0.16.1
-	golang.org/x/term v0.41.0
+	golang.org/x/term v0.42.0
 	gopkg.in/yaml.v3 v3.0.1
 )
 
@@ -58,9 +59,9 @@ require (
 	github.com/charmbracelet/harmonica v0.2.0 // indirect
 	github.com/charmbracelet/lipgloss v1.1.1-0.20250404203927-76690c660834 // indirect
 	github.com/charmbracelet/x/cellbuf v0.0.15 // indirect
-	github.com/charmbracelet/x/exp/charmtone v0.0.0-20260406091427-a791e22d5143 // indirect
+	github.com/charmbracelet/x/exp/charmtone v0.0.0-20260413165052-6921c759c913 // indirect
 	github.com/charmbracelet/x/exp/ordered v0.1.0 // indirect
-	github.com/charmbracelet/x/exp/slice v0.0.0-20260406091427-a791e22d5143 // indirect
+	github.com/charmbracelet/x/exp/slice v0.0.0-20260413165052-6921c759c913 // indirect
 	github.com/charmbracelet/x/exp/strings v0.1.0 // indirect
 	github.com/charmbracelet/x/json v0.2.0 // indirect
 	github.com/charmbracelet/x/termios v0.1.1 // indirect
@@ -81,10 +82,10 @@ require (
 	github.com/googleapis/enterprise-certificate-proxy v0.3.14 // indirect
 	github.com/googleapis/gax-go/v2 v2.21.0 // indirect
 	github.com/gorilla/websocket v1.5.3 // indirect
-	github.com/kaptinlin/go-i18n v0.3.1 // indirect
+	github.com/kaptinlin/go-i18n v0.4.0 // indirect
 	github.com/kaptinlin/jsonpointer v0.4.17 // indirect
 	github.com/kaptinlin/jsonschema v0.7.7 // indirect
-	github.com/kaptinlin/messageformat-go v0.4.19 // indirect
+	github.com/kaptinlin/messageformat-go v0.4.20 // indirect
 	github.com/mitchellh/hashstructure/v2 v2.0.2 // indirect
 	github.com/muesli/mango v0.2.0 // indirect
 	github.com/muesli/mango-cobra v1.3.0 // indirect
@@ -109,14 +110,14 @@ require (
 	go.opentelemetry.io/otel/metric v1.43.0 // indirect
 	go.opentelemetry.io/otel/trace v1.43.0 // indirect
 	go.yaml.in/yaml/v3 v3.0.4 // indirect
-	golang.org/x/crypto v0.49.0 // indirect
-	golang.org/x/exp v0.0.0-20260312153236-7ab1446f8b90 // indirect
-	golang.org/x/net v0.52.0 // indirect
+	golang.org/x/crypto v0.50.0 // indirect
+	golang.org/x/exp v0.0.0-20260410095643-746e56fc9e2f // indirect
+	golang.org/x/net v0.53.0 // indirect
 	golang.org/x/oauth2 v0.36.0 // indirect
 	golang.org/x/time v0.15.0 // indirect
 	google.golang.org/api v0.275.0 // indirect
-	google.golang.org/genai v1.52.1 // indirect
-	google.golang.org/genproto/googleapis/rpc v0.0.0-20260406210006-6f92a3bedf2d // indirect
+	google.golang.org/genai v1.54.0 // indirect
+	google.golang.org/genproto/googleapis/rpc v0.0.0-20260414002931-afd174a4e478 // indirect
 	google.golang.org/grpc v1.80.0 // indirect
 	google.golang.org/protobuf v1.36.11 // indirect
 	gopkg.in/yaml.v2 v2.4.0 // indirect
@@ -124,7 +125,7 @@ require (
 
 require (
 	github.com/aymanbagabas/go-osc52/v2 v2.0.1 // indirect
-	github.com/charmbracelet/x/ansi v0.11.6
+	github.com/charmbracelet/x/ansi v0.11.7
 	github.com/charmbracelet/x/term v0.2.2 // indirect
 	github.com/inconshreveable/mousetrap v1.1.0 // indirect
 	github.com/lucasb-eyer/go-colorful v1.4.0 // indirect
@@ -136,5 +137,5 @@ require (
 	github.com/spf13/pflag v1.0.10 // indirect
 	golang.org/x/sync v0.20.0 // indirect
 	golang.org/x/sys v0.43.0 // indirect
-	golang.org/x/text v0.35.0
+	golang.org/x/text v0.36.0
 )

go.sum

@@ -1,13 +1,13 @@
 charm.land/bubbles/v2 v2.1.0 h1:YSnNh5cPYlYjPxRrzs5VEn3vwhtEn3jVGRBT3M7/I0g=
 charm.land/bubbles/v2 v2.1.0/go.mod h1:l97h4hym2hvWBVfmJDtrEHHCtkIKeTEb3TTJ4ZOB3wY=
-charm.land/bubbletea/v2 v2.0.2 h1:4CRtRnuZOdFDTWSff9r8QFt/9+z6Emubz3aDMnf/dx0=
-charm.land/bubbletea/v2 v2.0.2/go.mod h1:3LRff2U4WIYXy7MTxfbAQ+AdfM3D8Xuvz2wbsOD9OHQ=
-charm.land/fantasy v0.17.1 h1:SQzfnyJPDuQWt6e//KKmQmEEXdqHMC0IZz10XwkLcEM=
-charm.land/fantasy v0.17.1/go.mod h1:FF5ALCCHETacHJPBqU42CtwMInYQ0ul52fdzIHQMbQk=
+charm.land/bubbletea/v2 v2.0.5 h1:TQlLFqxo39AAHSVuOhJ5D3nH7O9Nk8JGinsfWQ4y1U4=
+charm.land/bubbletea/v2 v2.0.5/go.mod h1:dvbsYZD+MHkdIZl+Z67D212hEvB+GII2tfH8f9SnoDw=
+charm.land/fantasy v0.17.2 h1:ojTMufMxY/PVH7TzYUxht2SVkvD90iCTJfmPR6c8BR8=
+charm.land/fantasy v0.17.2/go.mod h1:V9cCIUMZB9g3Bq40aKEY8xBNzDd48EdfHp2OMS0uzWs=
 charm.land/huh/v2 v2.0.3 h1:2cJsMqEPwSywGHvdlKsJyQKPtSJLVnFKyFbsYZTlLkU=
 charm.land/huh/v2 v2.0.3/go.mod h1:93eEveeeqn47MwiC3tf+2atZ2l7Is88rAtmZNZ8x9Wc=
-charm.land/lipgloss/v2 v2.0.2 h1:xFolbF8JdpNkM2cEPTfXEcW1p6NRzOWTSamRfYEw8cs=
-charm.land/lipgloss/v2 v2.0.2/go.mod h1:KjPle2Qd3YmvP1KL5OMHiHysGcNwq6u83MUjYkFvEkM=
+charm.land/lipgloss/v2 v2.0.3 h1:yM2zJ4Cf5Y51b7RHIwioil4ApI/aypFXXVHSwlM6RzU=
+charm.land/lipgloss/v2 v2.0.3/go.mod h1:7myLU9iG/3xluAWzpY/fSxYYHCgoKTie7laxk6ATwXA=
 cloud.google.com/go v0.123.0 h1:2NAUJwPR47q+E35uaJeYoNhuNEM9kM8SjgRgdeOJUSE=
 cloud.google.com/go v0.123.0/go.mod h1:xBoMV08QcqUGuPW65Qfm1o9Y4zKZBpGS+7bImXLTAZU=
 cloud.google.com/go/auth v0.20.0 h1:kXTssoVb4azsVDoUiF8KvxAqrsQcQtB53DcSgta74CA=
@@ -86,24 +86,26 @@ github.com/charmbracelet/log v1.0.0 h1:HVVVMmfOorfj3BA9i8X8UL69Hoz9lI0PYwXfJvOdR
 github.com/charmbracelet/log v1.0.0/go.mod h1:uYgY3SmLpwJWxmlrPwXvzVYujxis1vAKRV/0VQB7yWA=
 github.com/charmbracelet/openai-go v0.0.0-20260319145158-d0740cc34266 h1:BW/sZtyd1JyYy0h5adMm3tzpNyL857LWjuTRET6OhpY=
 github.com/charmbracelet/openai-go v0.0.0-20260319145158-d0740cc34266/go.mod h1:1DahUaExbUZx/jD+FNT2PKP4L9rLE5+ZBRuI8mZjd/E=
-github.com/charmbracelet/ultraviolet v0.0.0-20260330092749-0f94982c930b h1:ASDO9RT6SNKTQN87jO2bRfxHFJq8cgeYdFzivY2gCeM=
-github.com/charmbracelet/ultraviolet v0.0.0-20260330092749-0f94982c930b/go.mod h1:Vo8TffMf0q7Uho/n8e6XpBZvOWtd3g39yX+9P5rRutA=
-github.com/charmbracelet/x/ansi v0.11.6 h1:GhV21SiDz/45W9AnV2R61xZMRri5NlLnl6CVF7ihZW8=
-github.com/charmbracelet/x/ansi v0.11.6/go.mod h1:2JNYLgQUsyqaiLovhU2Rv/pb8r6ydXKS3NIttu3VGZQ=
+github.com/charmbracelet/ultraviolet v0.0.0-20260414011438-8c69ec811b1e h1:O5hZFj55wZQWxMiRtQLa3uLKhZGZGS/j8M3OXinQlrw=
+github.com/charmbracelet/ultraviolet v0.0.0-20260414011438-8c69ec811b1e/go.mod h1:bAAz7dh/FTYfC+oiHavL4mX1tOIBZ0ZwYjSi3qE6ivM=
+github.com/charmbracelet/x/ansi v0.11.7 h1:kzv1kJvjg2S3r9KHo8hDdHFQLEqn4RBCb39dAYC84jI=
+github.com/charmbracelet/x/ansi v0.11.7/go.mod h1:9qGpnAVYz+8ACONkZBUWPtL7lulP9No6p1epAihUZwQ=
 github.com/charmbracelet/x/cellbuf v0.0.15 h1:ur3pZy0o6z/R7EylET877CBxaiE1Sp1GMxoFPAIztPI=
 github.com/charmbracelet/x/cellbuf v0.0.15/go.mod h1:J1YVbR7MUuEGIFPCaaZ96KDl5NoS0DAWkskup+mOY+Q=
 github.com/charmbracelet/x/conpty v0.1.1 h1:s1bUxjoi7EpqiXysVtC+a8RrvPPNcNvAjfi4jxsAuEs=
 github.com/charmbracelet/x/conpty v0.1.1/go.mod h1:OmtR77VODEFbiTzGE9G1XiRJAga6011PIm4u5fTNZpk=
+github.com/charmbracelet/x/editor v0.2.0 h1:7XLUKtaRaB8jN7bWU2p2UChiySyaAuIfYiIRg8gGWwk=
+github.com/charmbracelet/x/editor v0.2.0/go.mod h1:p3oQ28TSL3YPd+GKJ1fHWcp+7bVGpedHpXmo0D6t1dY=
 github.com/charmbracelet/x/errors v0.0.0-20240508181413-e8d8b6e2de86 h1:JSt3B+U9iqk37QUU2Rvb6DSBYRLtWqFqfxf8l5hOZUA=
 github.com/charmbracelet/x/errors v0.0.0-20240508181413-e8d8b6e2de86/go.mod h1:2P0UgXMEa6TsToMSuFqKFQR+fZTO9CNGUNokkPatT/0=
-github.com/charmbracelet/x/exp/charmtone v0.0.0-20260406091427-a791e22d5143 h1:zmBor0ftFNqVFp9U59ZoEDRUCIYSGOGSIfGGkNZRufs=
-github.com/charmbracelet/x/exp/charmtone v0.0.0-20260406091427-a791e22d5143/go.mod h1:nsExn0DGyX0lh9LwLHTn2Gg+hafdzfSXnC+QmEJTZFY=
+github.com/charmbracelet/x/exp/charmtone v0.0.0-20260413165052-6921c759c913 h1:6F/6bu5nBLjodsvaU5xAszTaxtHrDU5UiJarpMPZj48=
+github.com/charmbracelet/x/exp/charmtone v0.0.0-20260413165052-6921c759c913/go.mod h1:nsExn0DGyX0lh9LwLHTn2Gg+hafdzfSXnC+QmEJTZFY=
 github.com/charmbracelet/x/exp/golden v0.0.0-20250806222409-83e3a29d542f h1:pk6gmGpCE7F3FcjaOEKYriCvpmIN4+6OS/RD0vm4uIA=
 github.com/charmbracelet/x/exp/golden v0.0.0-20250806222409-83e3a29d542f/go.mod h1:IfZAMTHB6XkZSeXUqriemErjAWCCzT0LwjKFYCZyw0I=
 github.com/charmbracelet/x/exp/ordered v0.1.0 h1:55/qLwjIh0gL0Vni+QAWk7T/qRVP6sBf+2agPBgnOFE=
 github.com/charmbracelet/x/exp/ordered v0.1.0/go.mod h1:5UHwmG+is5THxMyCJHNPCn2/ecI07aKNrW+LcResjJ8=
-github.com/charmbracelet/x/exp/slice v0.0.0-20260406091427-a791e22d5143 h1:aEppolah2k9c0LzKX2fk5ryuyQ0Lq8kCOjkvMw1b8o4=
-github.com/charmbracelet/x/exp/slice v0.0.0-20260406091427-a791e22d5143/go.mod h1:vqEfX6xzqW1pKKZUUiFOKg0OQ7bCh54Q2vR/tserrRA=
+github.com/charmbracelet/x/exp/slice v0.0.0-20260413165052-6921c759c913 h1:RiZFY92Ug9iz1CenzxSSQla2Z3WflsR7bIuXq40JlpU=
+github.com/charmbracelet/x/exp/slice v0.0.0-20260413165052-6921c759c913/go.mod h1:vqEfX6xzqW1pKKZUUiFOKg0OQ7bCh54Q2vR/tserrRA=
 github.com/charmbracelet/x/exp/strings v0.1.0 h1:i69S2XI7uG1u4NLGeJPSYU++Nmjvpo9nwd6aoEm7gkA=
 github.com/charmbracelet/x/exp/strings v0.1.0/go.mod h1:/ehtMPNh9K4odGFkqYJKpIYyePhdp1hLBRvyY4bWkH8=
 github.com/charmbracelet/x/json v0.2.0 h1:DqB+ZGx2h+Z+1s98HOuOyli+i97wsFQIxP2ZQANTPrQ=
@@ -185,14 +187,14 @@ github.com/indaco/herald v0.13.0 h1:+xVG9Fx5NpuWhwku/9IlRL6I009NnX4VUGKvlZHTRxU=
 github.com/indaco/herald v0.13.0/go.mod h1:T5g1+XLYvpjouhzAGHnAHDCKizhESkoV6+QPZ3DhgWA=
 github.com/indaco/herald-md v0.3.0 h1:hN1cKyrexPPM9PeHBsKuaWvIizSi/iYvM9yzRgtdb8M=
 github.com/indaco/herald-md v0.3.0/go.mod h1:RUHVaDSG45ymJjKyxpDwBocLXrZo93FB4OeYMsw9B9s=
-github.com/kaptinlin/go-i18n v0.3.1 h1:plXi3XQE1aYamFi8TU0K6actODmw2+5FSobmhTkfQ/0=
-github.com/kaptinlin/go-i18n v0.3.1/go.mod h1:ZRoAHj7elWYamfbv7wev7Ajch6LOzjtBaq8nWe8HIVk=
+github.com/kaptinlin/go-i18n v0.4.0 h1:i7L3U2yurg+xhokITtJ0k+mjHnXqkoyz8ju5Wb7W8Oc=
+github.com/kaptinlin/go-i18n v0.4.0/go.mod h1:njA6x0+4MWGcLWT0KLrwekhRPmze1Hnstf2+VJFzwpM=
 github.com/kaptinlin/jsonpointer v0.4.17 h1:mY9k8ciWncxbsECyaxKnR0MdmxamNdp2tLQkAKVrtSk=
 github.com/kaptinlin/jsonpointer v0.4.17/go.mod h1:SsfsjqnHG5zuKo1DTBzk1VknaHlL4osHw+X9kZKukpU=
 github.com/kaptinlin/jsonschema v0.7.7 h1:41BlQJ9dskH0oE5DSzBUrl/w4JQYIr6N6L0B5GNyDoM=
 github.com/kaptinlin/jsonschema v0.7.7/go.mod h1:rKjWfyySHSxAD7Li2ctYkPlOu960igoKBvZ2ADRtd5Q=
-github.com/kaptinlin/messageformat-go v0.4.19 h1:A5kuuZ1ybXDQ7kD1aoEWGAOemX7hLsMY0yolgSbgpRI=
-github.com/kaptinlin/messageformat-go v0.4.19/go.mod h1:utSDTfiXTxl66OC5RIEuObLH7Ue3YjbA2X86SYMBYWg=
+github.com/kaptinlin/messageformat-go v0.4.20 h1:a0ufTd5liiUubIGeGxpSTnNS8ZSrN4DV01/wGFmfzMs=
+github.com/kaptinlin/messageformat-go v0.4.20/go.mod h1:FqdEPfQLkqVBX7OBRMPgYwUPvKYJohFD9Ok1BMzCfIo=
 github.com/kr/pretty v0.3.1 h1:flRD4NNwYAUpkphVc1HcthR4KEIFJ65n8Mw5qdRn3LE=
 github.com/kr/pretty v0.3.1/go.mod h1:hoEshYVHaxMs3cyo3Yncou5ZscifuDolrwPKZanG3xk=
 github.com/kr/text v0.2.0 h1:5Nx0Ya0ZqY2ygV366QzturHI13Jq95ApcVaJBhpS+AY=
@@ -201,8 +203,8 @@ github.com/kylelemons/godebug v1.1.0 h1:RPNrshWIDI6G2gRW9EHilWtl7Z6Sb1BR0xunSBf0
 github.com/kylelemons/godebug v1.1.0/go.mod h1:9/0rRGxNHcop5bhtWyNeEfOS8JIWk580+fNqagV/RAw=
 github.com/lucasb-eyer/go-colorful v1.4.0 h1:UtrWVfLdarDgc44HcS7pYloGHJUjHV/4FwW4TvVgFr4=
 github.com/lucasb-eyer/go-colorful v1.4.0/go.mod h1:R4dSotOR9KMtayYi1e77YzuveK+i7ruzyGqttikkLy0=
-github.com/mark3labs/mcp-go v0.47.1 h1:A9sJJ20mscl/ssLYHjodfaoBmq6uuhMG7pAPNYaQymQ=
-github.com/mark3labs/mcp-go v0.47.1/go.mod h1:JKTC7R2LLVagkEWK7Kwu7DbmA6iIvnNAod6yrHiQMag=
+github.com/mark3labs/mcp-go v0.48.0 h1:o+MXuGW/HCeR2ny5LcAcZQn2bo6I2xaZMEHnpRG+dtw=
+github.com/mark3labs/mcp-go v0.48.0/go.mod h1:JKTC7R2LLVagkEWK7Kwu7DbmA6iIvnNAod6yrHiQMag=
 github.com/mattn/go-isatty v0.0.21 h1:xYae+lCNBP7QuW4PUnNG61ffM4hVIfm+zUzDuSzYLGs=
 github.com/mattn/go-isatty v0.0.21/go.mod h1:ZXfXG4SQHsB/w3ZeOYbR0PrPwLy+n6xiMrJlRFqopa4=
 github.com/mattn/go-runewidth v0.0.23 h1:7ykA0T0jkPpzSvMS5i9uoNn2Xy3R383f9HDx3RybWcw=
@@ -288,36 +290,36 @@ go.opentelemetry.io/otel/trace v1.43.0 h1:BkNrHpup+4k4w+ZZ86CZoHHEkohws8AY+WTX09
 go.opentelemetry.io/otel/trace v1.43.0/go.mod h1:/QJhyVBUUswCphDVxq+8mld+AvhXZLhe+8WVFxiFff0=
 go.yaml.in/yaml/v3 v3.0.4 h1:tfq32ie2Jv2UxXFdLJdh3jXuOzWiL1fo0bu/FbuKpbc=
 go.yaml.in/yaml/v3 v3.0.4/go.mod h1:DhzuOOF2ATzADvBadXxruRBLzYTpT36CKvDb3+aBEFg=
-golang.org/x/crypto v0.49.0 h1:+Ng2ULVvLHnJ/ZFEq4KdcDd/cfjrrjjNSXNzxg0Y4U4=
-golang.org/x/crypto v0.49.0/go.mod h1:ErX4dUh2UM+CFYiXZRTcMpEcN8b/1gxEuv3nODoYtCA=
-golang.org/x/exp v0.0.0-20260312153236-7ab1446f8b90 h1:jiDhWWeC7jfWqR9c/uplMOqJ0sbNlNWv0UkzE0vX1MA=
-golang.org/x/exp v0.0.0-20260312153236-7ab1446f8b90/go.mod h1:xE1HEv6b+1SCZ5/uscMRjUBKtIxworgEcEi+/n9NQDQ=
-golang.org/x/net v0.52.0 h1:He/TN1l0e4mmR3QqHMT2Xab3Aj3L9qjbhRm78/6jrW0=
-golang.org/x/net v0.52.0/go.mod h1:R1MAz7uMZxVMualyPXb+VaqGSa3LIaUqk0eEt3w36Sw=
+golang.org/x/crypto v0.50.0 h1:zO47/JPrL6vsNkINmLoo/PH1gcxpls50DNogFvB5ZGI=
+golang.org/x/crypto v0.50.0/go.mod h1:3muZ7vA7PBCE6xgPX7nkzzjiUq87kRItoJQM1Yo8S+Q=
+golang.org/x/exp v0.0.0-20260410095643-746e56fc9e2f h1:W3F4c+6OLc6H2lb//N1q4WpJkhzJCK5J6kUi1NTVXfM=
+golang.org/x/exp v0.0.0-20260410095643-746e56fc9e2f/go.mod h1:J1xhfL/vlindoeF/aINzNzt2Bket5bjo9sdOYzOsU80=
+golang.org/x/net v0.53.0 h1:d+qAbo5L0orcWAr0a9JweQpjXF19LMXJE8Ey7hwOdUA=
+golang.org/x/net v0.53.0/go.mod h1:JvMuJH7rrdiCfbeHoo3fCQU24Lf5JJwT9W3sJFulfgs=
 golang.org/x/oauth2 v0.36.0 h1:peZ/1z27fi9hUOFCAZaHyrpWG5lwe0RJEEEeH0ThlIs=
 golang.org/x/oauth2 v0.36.0/go.mod h1:YDBUJMTkDnJS+A4BP4eZBjCqtokkg1hODuPjwiGPO7Q=
 golang.org/x/sync v0.20.0 h1:e0PTpb7pjO8GAtTs2dQ6jYa5BWYlMuX047Dco/pItO4=
 golang.org/x/sync v0.20.0/go.mod h1:9xrNwdLfx4jkKbNva9FpL6vEN7evnE43NNNJQ2LF3+0=
 golang.org/x/sys v0.43.0 h1:Rlag2XtaFTxp19wS8MXlJwTvoh8ArU6ezoyFsMyCTNI=
 golang.org/x/sys v0.43.0/go.mod h1:4GL1E5IUh+htKOUEOaiffhrAeqysfVGipDYzABqnCmw=
-golang.org/x/term v0.41.0 h1:QCgPso/Q3RTJx2Th4bDLqML4W6iJiaXFq2/ftQF13YU=
-golang.org/x/term v0.41.0/go.mod h1:3pfBgksrReYfZ5lvYM0kSO0LIkAl4Yl2bXOkKP7Ec2A=
-golang.org/x/text v0.35.0 h1:JOVx6vVDFokkpaq1AEptVzLTpDe9KGpj5tR4/X+ybL8=
-golang.org/x/text v0.35.0/go.mod h1:khi/HExzZJ2pGnjenulevKNX1W67CUy0AsXcNubPGCA=
+golang.org/x/term v0.42.0 h1:UiKe+zDFmJobeJ5ggPwOshJIVt6/Ft0rcfrXZDLWAWY=
+golang.org/x/term v0.42.0/go.mod h1:Dq/D+snpsbazcBG5+F9Q1n2rXV8Ma+71xEjTRufARgY=
+golang.org/x/text v0.36.0 h1:JfKh3XmcRPqZPKevfXVpI1wXPTqbkE5f7JA92a55Yxg=
+golang.org/x/text v0.36.0/go.mod h1:NIdBknypM8iqVmPiuco0Dh6P5Jcdk8lJL0CUebqK164=
 golang.org/x/time v0.15.0 h1:bbrp8t3bGUeFOx08pvsMYRTCVSMk89u4tKbNOZbp88U=
 golang.org/x/time v0.15.0/go.mod h1:Y4YMaQmXwGQZoFaVFk4YpCt4FLQMYKZe9oeV/f4MSno=
 gonum.org/v1/gonum v0.17.0 h1:VbpOemQlsSMrYmn7T2OUvQ4dqxQXU+ouZFQsZOx50z4=
 gonum.org/v1/gonum v0.17.0/go.mod h1:El3tOrEuMpv2UdMrbNlKEh9vd86bmQ6vqIcDwxEOc1E=
 google.golang.org/api v0.275.0 h1:vfY5d9vFVJeWEZT65QDd9hbndr7FyZ2+6mIzGAh71NI=
 google.golang.org/api v0.275.0/go.mod h1:Fnag/EWUPIcJXuIkP1pjoTgS5vdxlk3eeemL7Do6bvw=
-google.golang.org/genai v1.52.1 h1:dYoljKtLDXMiBdVaClSJ/ZPwZ7j1N0lGjMhwOKOQUlk=
-google.golang.org/genai v1.52.1/go.mod h1:A3kkl0nyBjyFlNjgxIwKq70julKbIxpSxqKO5gw/gmk=
-google.golang.org/genproto v0.0.0-20260319201613-d00831a3d3e7 h1:XzmzkmB14QhVhgnawEVsOn6OFsnpyxNPRY9QV01dNB0=
-google.golang.org/genproto v0.0.0-20260319201613-d00831a3d3e7/go.mod h1:L43LFes82YgSonw6iTXTxXUX1OlULt4AQtkik4ULL/I=
-google.golang.org/genproto/googleapis/api v0.0.0-20260319201613-d00831a3d3e7 h1:41r6JMbpzBMen0R/4TZeeAmGXSJC7DftGINUodzTkPI=
-google.golang.org/genproto/googleapis/api v0.0.0-20260319201613-d00831a3d3e7/go.mod h1:EIQZ5bFCfRQDV4MhRle7+OgjNtZ6P1PiZBgAKuxXu/Y=
-google.golang.org/genproto/googleapis/rpc v0.0.0-20260406210006-6f92a3bedf2d h1:wT2n40TBqFY6wiwazVK9/iTWbsQrgk5ZfCSVFLO9LQA=
-google.golang.org/genproto/googleapis/rpc v0.0.0-20260406210006-6f92a3bedf2d/go.mod h1:4Hqkh8ycfw05ld/3BWL7rJOSfebL2Q+DVDeRgYgxUU8=
+google.golang.org/genai v1.54.0 h1:ZQCa70WMTJDI11FdqWCzGvZ5PanpcpfoO6jl/lrSnGU=
+google.golang.org/genai v1.54.0/go.mod h1:A3kkl0nyBjyFlNjgxIwKq70julKbIxpSxqKO5gw/gmk=
+google.golang.org/genproto v0.0.0-20260406210006-6f92a3bedf2d h1:N1Ec54vZnIPd7MnxRiYLW+oY4fDR4BOS/LrssdD9+ek=
+google.golang.org/genproto v0.0.0-20260406210006-6f92a3bedf2d/go.mod h1:c2hJ1grtnH0xUiEKGDGkjGNTJ1Hy2LrblyKOHF0sqRM=
+google.golang.org/genproto/googleapis/api v0.0.0-20260406210006-6f92a3bedf2d h1:/aDRtSZJjyLQzm75d+a1wOJaqyKBMvIAfeQmoa3ORiI=
+google.golang.org/genproto/googleapis/api v0.0.0-20260406210006-6f92a3bedf2d/go.mod h1:etfGUgejTiadZAUaEP14NP97xi1RGeawqkjDARA/UOs=
+google.golang.org/genproto/googleapis/rpc v0.0.0-20260414002931-afd174a4e478 h1:RmoJA1ujG+/lRGNfUnOMfhCy5EipVMyvUE+KNbPbTlw=
+google.golang.org/genproto/googleapis/rpc v0.0.0-20260414002931-afd174a4e478/go.mod h1:4Hqkh8ycfw05ld/3BWL7rJOSfebL2Q+DVDeRgYgxUU8=
 google.golang.org/grpc v1.80.0 h1:Xr6m2WmWZLETvUNvIUmeD5OAagMw3FiKmMlTdViWsHM=
 google.golang.org/grpc v1.80.0/go.mod h1:ho/dLnxwi3EDJA4Zghp7k2Ec1+c2jqup0bFkw07bwF4=
 google.golang.org/protobuf v1.36.11 h1:fV6ZwhNocDyBLK0dj+fg8ektcVegBBuEolpbTQyBNVE=

internal/agent/agent.go

@@ -30,6 +30,11 @@ type AgentConfig struct {
 	// If nil, remote MCP servers that require OAuth will fail to connect.
 	AuthHandler tools.MCPAuthHandler
 
+	// TokenStoreFactory, if non-nil, creates a custom token store for each
+	// remote MCP server's OAuth tokens. When nil, the default file-based
+	// token store is used.
+	TokenStoreFactory tools.TokenStoreFactory
+
 	// CoreTools overrides the default core tool set. If empty, core.AllTools()
 	// is used. This allows SDK users to provide a custom tool set (e.g.
 	// CodingTools or tools with a custom WorkDir).
@@ -89,6 +94,12 @@ type ReasoningCompleteHandler func()
 // Note: This is an alias for core.ToolOutputCallback to avoid import cycles.
 type ToolOutputHandler = core.ToolOutputCallback
 
+// PasswordPromptHandler is a function type for password prompts.
+// Used by the bash tool when sudo requires a password. The handler receives
+// a prompt message and returns the password and whether it was cancelled.
+// Note: This is an alias for core.PasswordPromptCallback.
+type PasswordPromptHandler = core.PasswordPromptCallback
+
 // StepMessagesHandler is a function type for persisting messages after each
 // complete step in a multi-step agent turn. The handler receives the messages
 // produced by the step (typically an assistant message with tool calls followed
@@ -130,6 +141,12 @@ type Agent struct {
 	skipMaxOutputTokens bool
 	modelConfig         *models.ProviderConfig
 
+	// authHandler and tokenStoreFactory are stored from AgentConfig so that
+	// AddMCPServer() can propagate them when creating a new MCPToolManager
+	// at runtime (i.e. when no MCP servers were configured at init time).
+	authHandler       tools.MCPAuthHandler
+	tokenStoreFactory tools.TokenStoreFactory
+
 	// mcpReady is closed when background MCP tool loading completes (success
 	// or failure). nil when no MCP servers are configured.
 	mcpReady chan struct{}
@@ -226,16 +243,20 @@ func NewAgent(ctx context.Context, agentConfig *AgentConfig) (*Agent, error) {
 		providerOptions:     providerResult.ProviderOptions,
 		skipMaxOutputTokens: providerResult.SkipMaxOutputTokens,
 		modelConfig:         agentConfig.ModelConfig,
+		authHandler:         agentConfig.AuthHandler,
+		tokenStoreFactory:   agentConfig.TokenStoreFactory,
 	}
 
 	// Start MCP tool loading in the background if servers are configured.
 	// The mcpReady channel is closed when loading completes (success or failure).
 	if agentConfig.MCPConfig != nil && len(agentConfig.MCPConfig.MCPServers) > 0 {
 		toolManager := tools.NewMCPToolManager()
-		toolManager.SetModel(providerResult.Model)
 		if agentConfig.AuthHandler != nil {
 			toolManager.SetAuthHandler(agentConfig.AuthHandler)
 		}
+		if agentConfig.TokenStoreFactory != nil {
+			toolManager.SetTokenStoreFactory(agentConfig.TokenStoreFactory)
+		}
 		if agentConfig.DebugLogger != nil {
 			toolManager.SetDebugLogger(agentConfig.DebugLogger)
 		}
@@ -309,7 +330,7 @@ func (a *Agent) rebuildFantasyAgent() {
 	allTools := make([]fantasy.AgentTool, len(a.coreTools))
 	copy(allTools, a.coreTools)
 	if a.toolManager != nil {
-		allTools = append(allTools, a.toolManager.GetTools()...)
+		allTools = append(allTools, mcpToolsToAgentTools(a.toolManager.GetTools(), a.toolManager)...)
 	}
 	if len(a.extraTools) > 0 {
 		allTools = append(allTools, a.extraTools...)
@@ -390,7 +411,7 @@ func (a *Agent) GenerateWithLoop(ctx context.Context, messages []fantasy.Message
 	onResponse ResponseHandler, onToolCallContent ToolCallContentHandler,
 ) (*GenerateWithLoopResult, error) {
 	return a.GenerateWithLoopAndStreaming(ctx, messages, onToolCall, onToolExecution, onToolResult,
-		onResponse, onToolCallContent, nil, nil, nil, nil, nil, nil)
+		onResponse, onToolCallContent, nil, nil, nil, nil, nil, nil, nil)
 }
 
 // GenerateWithLoopAndStreaming processes messages using the agent with streaming and callbacks.
@@ -405,6 +426,7 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 	onToolOutput ToolOutputHandler,
 	onStepMessages StepMessagesHandler,
 	onStepUsage StepUsageHandler,
+	onPasswordPrompt PasswordPromptHandler,
 ) (*GenerateWithLoopResult, error) {
 
 	// Wait for background MCP tool loading to complete and rebuild the
@@ -417,6 +439,11 @@ func (a *Agent) GenerateWithLoopAndStreaming(ctx context.Context, messages []fan
 		ctx = core.ContextWithToolOutputCallback(ctx, onToolOutput)
 	}
 
+	// Inject password prompt handler into context for use by bash tool.
+	if onPasswordPrompt != nil {
+		ctx = core.ContextWithPasswordPrompt(ctx, onPasswordPrompt)
+	}
+
 	// The agent requires the current user input as Prompt, with prior messages as history.
 	// Extract the last user message text and files as the prompt, and pass everything
 	// before it as Messages. Files (e.g. clipboard images) are passed via the Files
@@ -792,7 +819,7 @@ func (a *Agent) GetTools() []fantasy.AgentTool {
 	allTools := make([]fantasy.AgentTool, len(a.coreTools))
 	copy(allTools, a.coreTools)
 	if a.toolManager != nil {
-		allTools = append(allTools, a.toolManager.GetTools()...)
+		allTools = append(allTools, mcpToolsToAgentTools(a.toolManager.GetTools(), a.toolManager)...)
 	}
 	if len(a.extraTools) > 0 {
 		allTools = append(allTools, a.extraTools...)
@@ -826,6 +853,64 @@ func (a *Agent) SetExtraTools(extraTools []fantasy.AgentTool) {
 	a.rebuildFantasyAgent()
 }
 
+// AddMCPServer connects to a new MCP server at runtime and makes its tools
+// available to the agent. Returns the number of tools loaded.
+// If the agent has no tool manager (no MCP servers were configured at init),
+// one is created automatically.
+func (a *Agent) AddMCPServer(ctx context.Context, name string, cfg config.MCPServerConfig) (int, error) {
+	// Ensure MCP tools from initial load are settled first.
+	a.ensureMCPTools()
+
+	if a.toolManager == nil {
+		a.toolManager = tools.NewMCPToolManager()
+		if a.authHandler != nil {
+			a.toolManager.SetAuthHandler(a.authHandler)
+		}
+		if a.tokenStoreFactory != nil {
+			a.toolManager.SetTokenStoreFactory(a.tokenStoreFactory)
+		}
+		a.toolManager.SetOnToolsChanged(func() {
+			a.rebuildFantasyAgent()
+		})
+	}
+
+	count, err := a.toolManager.AddServer(ctx, name, cfg)
+	if err != nil {
+		return 0, err
+	}
+
+	// AddServer's onToolsChanged callback triggers rebuildFantasyAgent,
+	// but only if it was wired. Ensure rebuild happens regardless.
+	a.rebuildFantasyAgent()
+	return count, nil
+}
+
+// RemoveMCPServer disconnects an MCP server and removes its tools from the agent.
+func (a *Agent) RemoveMCPServer(name string) error {
+	if a.toolManager == nil {
+		return fmt.Errorf("no MCP servers loaded")
+	}
+
+	// Ensure MCP tools from initial load are settled first.
+	a.ensureMCPTools()
+
+	err := a.toolManager.RemoveServer(name)
+	if err != nil {
+		return err
+	}
+
+	// RemoveServer's onToolsChanged callback triggers rebuildFantasyAgent,
+	// but ensure rebuild happens regardless.
+	a.rebuildFantasyAgent()
+	return nil
+}
+
+// GetMCPToolManager returns the underlying MCP tool manager.
+// Returns nil if no MCP servers have been configured.
+func (a *Agent) GetMCPToolManager() *tools.MCPToolManager {
+	return a.toolManager
+}
+
 // GetLoadingMessage returns the loading message from provider creation.
 func (a *Agent) GetLoadingMessage() string {
 	return a.loadingMessage
@@ -839,9 +924,61 @@ func (a *Agent) GetLoadedServerNames() []string {
 	return a.toolManager.GetLoadedServerNames()
 }
 
-// SetModel swaps the agent's LLM provider to a new model. The existing tools,
-// system prompt, and configuration are preserved. The old provider is closed
-// if it has a closer. Returns the previous model string for notification.
+// GetMCPPrompts returns all prompts discovered from connected MCP servers.
+// Returns nil if no MCP servers are configured or no prompts were found.
+func (a *Agent) GetMCPPrompts() []tools.MCPPrompt {
+	if a.toolManager == nil {
+		return nil
+	}
+	return a.toolManager.GetPrompts()
+}
+
+// GetMCPPrompt retrieves and expands a specific prompt from an MCP server.
+// This is a lazy call — the server is contacted each time.
+func (a *Agent) GetMCPPrompt(ctx context.Context, serverName, promptName string, args map[string]string) (*tools.MCPPromptResult, error) {
+	if a.toolManager == nil {
+		return nil, fmt.Errorf("no MCP servers configured")
+	}
+	return a.toolManager.GetPrompt(ctx, serverName, promptName, args)
+}
+
+// GetMCPResources returns all resources discovered from connected MCP servers.
+func (a *Agent) GetMCPResources() []tools.MCPResource {
+	if a.toolManager == nil {
+		return nil
+	}
+	return a.toolManager.GetResources()
+}
+
+// ReadMCPResource reads a specific resource from an MCP server by URI.
+func (a *Agent) ReadMCPResource(ctx context.Context, serverName, uri string) (*tools.MCPResourceContent, error) {
+	if a.toolManager == nil {
+		return nil, fmt.Errorf("no MCP servers configured")
+	}
+	return a.toolManager.ReadResource(ctx, serverName, uri)
+}
+
+// SubscribeMCPResource subscribes to change notifications for a resource.
+func (a *Agent) SubscribeMCPResource(ctx context.Context, serverName, uri string) error {
+	if a.toolManager == nil {
+		return fmt.Errorf("no MCP servers configured")
+	}
+	return a.toolManager.SubscribeResource(ctx, serverName, uri)
+}
+
+// UnsubscribeMCPResource cancels change notifications for a resource.
+func (a *Agent) UnsubscribeMCPResource(ctx context.Context, serverName, uri string) error {
+	if a.toolManager == nil {
+		return fmt.Errorf("no MCP servers configured")
+	}
+	return a.toolManager.UnsubscribeResource(ctx, serverName, uri)
+}
+
+// SetModel swaps the agent's LLM provider to a new model. The existing tools
+// and configuration are preserved. When the new model's ProviderConfig carries
+// a system prompt (from per-model settings), it replaces the agent's stored
+// prompt so the rebuilt fantasy agent uses it. The old provider is closed if
+// it has a closer.
 func (a *Agent) SetModel(ctx context.Context, config *models.ProviderConfig) error {
 	// Ensure MCP tools are loaded before rebuilding (SetModel may be called
 	// before the first LLM call).
@@ -856,11 +993,6 @@ func (a *Agent) SetModel(ctx context.Context, config *models.ProviderConfig) err
 		_ = a.providerCloser.Close()
 	}
 
-	// Update model info on MCP tool manager.
-	if a.toolManager != nil {
-		a.toolManager.SetModel(providerResult.Model)
-	}
-
 	// Swap fields.
 	a.model = providerResult.Model
 	a.providerCloser = providerResult.Closer
@@ -868,6 +1000,13 @@ func (a *Agent) SetModel(ctx context.Context, config *models.ProviderConfig) err
 	a.skipMaxOutputTokens = providerResult.SkipMaxOutputTokens
 	a.modelConfig = config
 
+	// Update system prompt when the config carries one (from per-model
+	// settings or the global config). This allows model-specific system
+	// prompts to take effect on model switch.
+	if config.SystemPrompt != "" {
+		a.systemPrompt = config.SystemPrompt
+	}
+
 	// Update provider type.
 	if config.ModelString != "" {
 		if p, _, err := models.ParseModelString(config.ModelString); err == nil {
@@ -886,6 +1025,22 @@ func (a *Agent) GetModel() fantasy.LanguageModel {
 	return a.model
 }
 
+// GetMaxTokens returns the effective max output tokens the agent currently
+// sends to the LLM provider, after per-model defaults, right-sizing, and any
+// Anthropic thinking-budget adjustments. Returns 0 when no ModelConfig is
+// attached (e.g. early init) or when the provider suppresses the parameter
+// (e.g. Codex OAuth), which allows callers to differentiate "default" from
+// "explicitly capped".
+func (a *Agent) GetMaxTokens() int {
+	if a.skipMaxOutputTokens {
+		return 0
+	}
+	if a.modelConfig == nil {
+		return 0
+	}
+	return a.modelConfig.MaxTokens
+}
+
 // Close closes the agent and cleans up resources.
 // If MCP tools are still loading in the background, Close waits for them
 // to finish before closing connections to avoid resource leaks.

internal/agent/agent_mcp_test.go

@@ -0,0 +1,302 @@
+package agent
+
+import (
+	"context"
+	"os"
+	"path/filepath"
+	"runtime"
+	"strings"
+	"testing"
+	"time"
+
+	"charm.land/fantasy"
+
+	"github.com/mark3labs/kit/internal/config"
+)
+
+// mockModel is a minimal LanguageModel that satisfies the interface
+// without making real API calls. Used to test tool management wiring.
+type mockModel struct{}
+
+func (m *mockModel) Generate(_ context.Context, _ fantasy.Call) (*fantasy.Response, error) {
+	return &fantasy.Response{}, nil
+}
+func (m *mockModel) Stream(_ context.Context, _ fantasy.Call) (fantasy.StreamResponse, error) {
+	return nil, nil
+}
+func (m *mockModel) GenerateObject(_ context.Context, _ fantasy.ObjectCall) (*fantasy.ObjectResponse, error) {
+	return &fantasy.ObjectResponse{}, nil
+}
+func (m *mockModel) StreamObject(_ context.Context, _ fantasy.ObjectCall) (fantasy.ObjectStreamResponse, error) {
+	return nil, nil
+}
+func (m *mockModel) Provider() string { return "mock" }
+func (m *mockModel) Model() string    { return "mock-model" }
+
+// testdataDir returns the absolute path to the tools testdata directory.
+func testdataDir(t *testing.T) string {
+	t.Helper()
+	_, file, _, ok := runtime.Caller(0)
+	if !ok {
+		t.Fatal("cannot determine test file path")
+	}
+	return filepath.Join(filepath.Dir(file), "..", "tools", "testdata")
+}
+
+// echoServerConfig returns an MCPServerConfig for the test echo MCP server.
+func echoServerConfig(t *testing.T) config.MCPServerConfig {
+	t.Helper()
+	script := filepath.Join(testdataDir(t), "echo_server.py")
+	if _, err := os.Stat(script); err != nil {
+		t.Skipf("echo_server.py not found: %v", err)
+	}
+	return config.MCPServerConfig{
+		Command: []string{"python3", script},
+	}
+}
+
+// mockAuthHandler is a minimal MCPAuthHandler for testing that auth handler
+// propagation works without requiring a real OAuth server.
+type mockAuthHandler struct {
+	redirectURI string
+}
+
+func (h *mockAuthHandler) RedirectURI() string { return h.redirectURI }
+func (h *mockAuthHandler) HandleAuth(_ context.Context, _ string, _ string) (string, error) {
+	return "", nil
+}
+
+// newTestAgent creates a minimal Agent with a mock model and no core tools,
+// suitable for testing MCP server management without an API key.
+func newTestAgent() *Agent {
+	model := &mockModel{}
+	a := &Agent{
+		model:        model,
+		coreTools:    nil,
+		extraTools:   nil,
+		maxSteps:     10,
+		systemPrompt: "test",
+		fantasyAgent: fantasy.NewAgent(model),
+	}
+	return a
+}
+
+func TestAgent_AddMCPServer(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	a := newTestAgent()
+	defer func() { _ = a.Close() }()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+
+	// Initially no MCP tools.
+	if a.GetMCPToolCount() != 0 {
+		t.Fatalf("Expected 0 MCP tools initially, got %d", a.GetMCPToolCount())
+	}
+
+	// Add a server.
+	count, err := a.AddMCPServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("AddMCPServer failed: %v", err)
+	}
+	if count != 2 {
+		t.Errorf("Expected 2 tools, got %d", count)
+	}
+
+	// Verify tools are in the agent's tool list.
+	if a.GetMCPToolCount() != 2 {
+		t.Errorf("Expected 2 MCP tools, got %d", a.GetMCPToolCount())
+	}
+
+	allTools := a.GetTools()
+	toolNames := make(map[string]bool)
+	for _, tool := range allTools {
+		toolNames[tool.Info().Name] = true
+	}
+	if !toolNames["echo__echo"] {
+		t.Error("Expected tool 'echo__echo' in agent tools")
+	}
+	if !toolNames["echo__greet"] {
+		t.Error("Expected tool 'echo__greet' in agent tools")
+	}
+
+	// Verify loaded server names.
+	names := a.GetLoadedServerNames()
+	found := false
+	for _, n := range names {
+		if n == "echo" {
+			found = true
+		}
+	}
+	if !found {
+		t.Errorf("Expected 'echo' in loaded server names: %v", names)
+	}
+}
+
+func TestAgent_RemoveMCPServer(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	a := newTestAgent()
+	defer func() { _ = a.Close() }()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+
+	// Add then remove.
+	_, err := a.AddMCPServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("AddMCPServer failed: %v", err)
+	}
+
+	err = a.RemoveMCPServer("echo")
+	if err != nil {
+		t.Fatalf("RemoveMCPServer failed: %v", err)
+	}
+
+	// Verify tools removed.
+	if a.GetMCPToolCount() != 0 {
+		t.Errorf("Expected 0 MCP tools after removal, got %d", a.GetMCPToolCount())
+	}
+
+	// Verify agent's tool list has no MCP tools.
+	for _, tool := range a.GetTools() {
+		if strings.Contains(tool.Info().Name, "echo__") {
+			t.Errorf("Found leftover tool after removal: %s", tool.Info().Name)
+		}
+	}
+}
+
+func TestAgent_RemoveMCPServer_NoToolManager(t *testing.T) {
+	a := newTestAgent()
+	defer func() { _ = a.Close() }()
+
+	err := a.RemoveMCPServer("nonexistent")
+	if err == nil {
+		t.Fatal("Expected error when no tool manager exists")
+	}
+	if !strings.Contains(err.Error(), "no MCP servers loaded") {
+		t.Errorf("Expected 'no MCP servers loaded' error, got: %v", err)
+	}
+}
+
+func TestAgent_AddMCPServer_CreatesToolManager(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	a := newTestAgent()
+	defer func() { _ = a.Close() }()
+
+	// Initially no tool manager.
+	if a.GetMCPToolManager() != nil {
+		t.Fatal("Expected nil tool manager initially")
+	}
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+	_, err := a.AddMCPServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("AddMCPServer failed: %v", err)
+	}
+
+	// Tool manager should now exist.
+	if a.GetMCPToolManager() == nil {
+		t.Fatal("Expected tool manager to be created by AddMCPServer")
+	}
+}
+
+func TestAgent_AddRemoveAdd_MCP(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	a := newTestAgent()
+	defer func() { _ = a.Close() }()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+
+	// Add → Remove → Add cycle.
+	_, err := a.AddMCPServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("First add failed: %v", err)
+	}
+
+	err = a.RemoveMCPServer("echo")
+	if err != nil {
+		t.Fatalf("Remove failed: %v", err)
+	}
+
+	count, err := a.AddMCPServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("Re-add failed: %v", err)
+	}
+	if count != 2 {
+		t.Errorf("Expected 2 tools on re-add, got %d", count)
+	}
+	if a.GetMCPToolCount() != 2 {
+		t.Errorf("Expected 2 MCP tools after re-add, got %d", a.GetMCPToolCount())
+	}
+}
+
+// TestAgent_AddMCPServer_InheritsAuthHandler verifies that AddMCPServer()
+// propagates the agent's authHandler and tokenStoreFactory to a newly created
+// MCPToolManager (fix for issue #3).
+func TestAgent_AddMCPServer_InheritsAuthHandler(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	handler := &mockAuthHandler{redirectURI: "http://localhost:9999/oauth/callback"}
+
+	model := &mockModel{}
+	a := &Agent{
+		model:             model,
+		coreTools:         nil,
+		extraTools:        nil,
+		maxSteps:          10,
+		systemPrompt:      "test",
+		fantasyAgent:      fantasy.NewAgent(model),
+		authHandler:       handler,
+		tokenStoreFactory: nil, // nil is fine; we just test authHandler propagation
+	}
+	defer func() { _ = a.Close() }()
+
+	// Initially no tool manager.
+	if a.GetMCPToolManager() != nil {
+		t.Fatal("Expected nil tool manager initially")
+	}
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+	_, err := a.AddMCPServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("AddMCPServer failed: %v", err)
+	}
+
+	// Tool manager should now exist and have the auth handler set.
+	tm := a.GetMCPToolManager()
+	if tm == nil {
+		t.Fatal("Expected tool manager to be created by AddMCPServer")
+	}
+
+	// Verify the auth handler was propagated by checking the field directly.
+	if tm.GetAuthHandler() == nil {
+		t.Fatal("Expected auth handler to be propagated to tool manager")
+	}
+}

internal/agent/factory.go

@@ -38,6 +38,10 @@ type AgentCreationOptions struct {
 	DebugLogger tools.DebugLogger // Optional debug logger
 	// AuthHandler handles OAuth authorization for remote MCP servers
 	AuthHandler tools.MCPAuthHandler
+	// TokenStoreFactory, if non-nil, creates a custom token store for each
+	// remote MCP server's OAuth tokens. When nil, the default file-based
+	// token store is used.
+	TokenStoreFactory tools.TokenStoreFactory
 	// CoreTools overrides the default core tool set. If empty, core.AllTools()
 	// is used.
 	CoreTools []fantasy.AgentTool
@@ -66,6 +70,7 @@ func CreateAgent(ctx context.Context, opts *AgentCreationOptions) (*Agent, error
 		StreamingEnabled:  opts.StreamingEnabled,
 		DebugLogger:       opts.DebugLogger,
 		AuthHandler:       opts.AuthHandler,
+		TokenStoreFactory: opts.TokenStoreFactory,
 		CoreTools:         opts.CoreTools,
 		DisableCoreTools:  opts.DisableCoreTools,
 		ToolWrapper:       opts.ToolWrapper,

internal/agent/mcp_adapter.go

@@ -0,0 +1,65 @@
+package agent
+
+import (
+	"context"
+	"fmt"
+
+	"charm.land/fantasy"
+
+	"github.com/mark3labs/kit/internal/tools"
+)
+
+// mcpAgentTool adapts an tools.MCPTool to the fantasy.AgentTool interface.
+// This keeps the fantasy dependency confined to the agent layer — the tools
+// package is a pure MCP client library with no LLM framework dependency.
+type mcpAgentTool struct {
+	tool            tools.MCPTool
+	manager         *tools.MCPToolManager
+	providerOptions fantasy.ProviderOptions
+}
+
+// Info returns the fantasy tool info including name, description, and parameter schema.
+func (t *mcpAgentTool) Info() fantasy.ToolInfo {
+	return fantasy.ToolInfo{
+		Name:        t.tool.Name,
+		Description: t.tool.Description,
+		Parameters:  t.tool.Parameters,
+		Required:    t.tool.Required,
+	}
+}
+
+// Run executes the MCP tool by delegating to the MCPToolManager.
+func (t *mcpAgentTool) Run(ctx context.Context, call fantasy.ToolCall) (fantasy.ToolResponse, error) {
+	result, err := t.manager.ExecuteTool(ctx, t.tool.Name, call.Input)
+	if err != nil {
+		return fantasy.ToolResponse{}, fmt.Errorf("mcp tool execution failed: %w", err)
+	}
+
+	if result.IsError {
+		return fantasy.NewTextErrorResponse(result.Content), nil
+	}
+	return fantasy.NewTextResponse(result.Content), nil
+}
+
+// ProviderOptions returns provider-specific options for this tool.
+func (t *mcpAgentTool) ProviderOptions() fantasy.ProviderOptions {
+	return t.providerOptions
+}
+
+// SetProviderOptions sets provider-specific options for this tool.
+func (t *mcpAgentTool) SetProviderOptions(opts fantasy.ProviderOptions) {
+	t.providerOptions = opts
+}
+
+// mcpToolsToAgentTools converts a slice of MCPTool to fantasy.AgentTool
+// implementations that route execution through the MCPToolManager.
+func mcpToolsToAgentTools(mcpTools []tools.MCPTool, manager *tools.MCPToolManager) []fantasy.AgentTool {
+	agentTools := make([]fantasy.AgentTool, len(mcpTools))
+	for i, t := range mcpTools {
+		agentTools[i] = &mcpAgentTool{
+			tool:    t,
+			manager: manager,
+		}
+	}
+	return agentTools
+}

internal/app/app.go

@@ -497,6 +497,12 @@ func (a *App) CompactAsync(customInstructions string, onComplete func(), onError
 // response text to stdout. No intermediate events are emitted. Blocks until
 // the step completes or ctx is cancelled.
 func (a *App) RunOnce(ctx context.Context, prompt string) error {
+	return a.RunOnceWithFiles(ctx, prompt, nil)
+}
+
+// RunOnceWithFiles executes a single agent step synchronously with optional
+// multimodal file attachments. Prints the response to stdout and returns.
+func (a *App) RunOnceWithFiles(ctx context.Context, prompt string, files []kit.LLMFilePart) error {
 	stepCtx, cancel := context.WithCancel(ctx)
 	defer cancel()
 
@@ -504,7 +510,7 @@ func (a *App) RunOnce(ctx context.Context, prompt string) error {
 	a.cancelStep = cancel
 	a.mu.Unlock()
 
-	result, err := a.executeStep(stepCtx, prompt, nil, nil)
+	result, err := a.executeStep(stepCtx, prompt, nil, files)
 	if err != nil {
 		return err
 	}
@@ -519,6 +525,12 @@ func (a *App) RunOnce(ctx context.Context, prompt string) error {
 // full TurnResult without printing anything. This is used by --json mode to
 // capture structured output for serialization.
 func (a *App) RunOnceResult(ctx context.Context, prompt string) (*kit.TurnResult, error) {
+	return a.RunOnceResultWithFiles(ctx, prompt, nil)
+}
+
+// RunOnceResultWithFiles executes a single agent step synchronously with
+// optional multimodal file attachments and returns the full TurnResult.
+func (a *App) RunOnceResultWithFiles(ctx context.Context, prompt string, files []kit.LLMFilePart) (*kit.TurnResult, error) {
 	stepCtx, cancel := context.WithCancel(ctx)
 	defer cancel()
 
@@ -526,7 +538,7 @@ func (a *App) RunOnceResult(ctx context.Context, prompt string) (*kit.TurnResult
 	a.cancelStep = cancel
 	a.mu.Unlock()
 
-	return a.executeStep(stepCtx, prompt, nil, nil)
+	return a.executeStep(stepCtx, prompt, nil, files)
 }
 
 // RunOnceWithDisplay executes a single agent step synchronously, sending
@@ -540,6 +552,12 @@ func (a *App) RunOnceResult(ctx context.Context, prompt string) (*kit.TurnResult
 //
 // Blocks until the step completes or ctx is cancelled.
 func (a *App) RunOnceWithDisplay(ctx context.Context, prompt string, eventFn func(tea.Msg)) error {
+	return a.RunOnceWithDisplayAndFiles(ctx, prompt, eventFn, nil)
+}
+
+// RunOnceWithDisplayAndFiles executes a single agent step synchronously with
+// optional multimodal file attachments, sending intermediate display events.
+func (a *App) RunOnceWithDisplayAndFiles(ctx context.Context, prompt string, eventFn func(tea.Msg), files []kit.LLMFilePart) error {
 	stepCtx, cancel := context.WithCancel(ctx)
 	defer cancel()
 
@@ -547,7 +565,7 @@ func (a *App) RunOnceWithDisplay(ctx context.Context, prompt string, eventFn fun
 	a.cancelStep = cancel
 	a.mu.Unlock()
 
-	result, err := a.executeStep(stepCtx, prompt, eventFn, nil)
+	result, err := a.executeStep(stepCtx, prompt, eventFn, files)
 	if err != nil {
 		return err
 	}
@@ -900,6 +918,22 @@ func (a *App) subscribeSDKEvents(sendFn func(tea.Msg), stepUsageSeen *atomic.Boo
 			sendFn(SteerConsumedEvent{})
 		case kit.StepUsageEvent:
 			a.recordStepUsage(ev, stepUsageSeen)
+		case kit.PasswordPromptEvent:
+			// Convert SDK PasswordPromptEvent to app PasswordPromptEvent
+			// The TUI will handle this and send the response back
+			responseCh := make(chan PasswordPromptResponse, 1)
+			sendFn(PasswordPromptEvent{
+				Prompt:     ev.Prompt,
+				ResponseCh: responseCh,
+			})
+			// Wait for TUI response and forward to SDK
+			resp := <-responseCh
+			ev.ResponseCh <- kit.PasswordPromptResponse{
+				Password:  resp.Password,
+				Cancelled: resp.Cancelled,
+			}
+		case kit.TurnEndEvent:
+			a.handleTurnEnd(ev, sendFn)
 		}
 	}))
 
@@ -910,6 +944,64 @@ func (a *App) subscribeSDKEvents(sendFn func(tea.Msg), stepUsageSeen *atomic.Boo
 	}
 }
 
+// handleTurnEnd inspects a turn's final StopReason and surfaces actionable
+// feedback to the user when the turn ended in a state they can act on.
+//
+// Today the only surfaced case is FinishReasonLength — the model hit its
+// configured max_output_tokens budget and the reply was truncated. Without
+// this banner the TUI used to swallow the truncation silently, leading to
+// "ghost" cut-offs with no indication of why.
+//
+// Separated from subscribeSDKEvents so tests can exercise it directly via a
+// stubbed sendFn without standing up a full Kit.
+func (a *App) handleTurnEnd(ev kit.TurnEndEvent, sendFn func(tea.Msg)) {
+	if sendFn == nil {
+		return
+	}
+	if ev.StopReason != kit.FinishReasonLength {
+		return
+	}
+	sendFn(ExtensionPrintEvent{
+		Level: "info",
+		Text:  a.formatMaxTokensTruncatedMessage(),
+	})
+}
+
+// formatMaxTokensTruncatedMessage builds the user-facing explanation for a
+// truncated turn. It reports the active max_output_tokens budget and, when
+// known, the model's catalog output ceiling so the user can judge how much
+// headroom is available.
+func (a *App) formatMaxTokensTruncatedMessage() string {
+	k := a.opts.Kit
+	if k == nil {
+		// Extremely early / test-stub case: still emit a useful generic hint.
+		return "⚠ Response truncated: the model hit the configured max_output_tokens limit. " +
+			"Raise it with --max-tokens N, KIT_MAX_TOKENS=N, or per-model " +
+			"modelSettings[provider/model].maxTokens in config."
+	}
+	current := k.MaxTokens()
+	ceiling := k.MaxOutputLimit()
+	model := k.GetModelString()
+
+	msg := "⚠ Response truncated: "
+	if model != "" {
+		msg += fmt.Sprintf("%s hit the configured max_output_tokens limit", model)
+	} else {
+		msg += "the model hit the configured max_output_tokens limit"
+	}
+	if current > 0 {
+		msg += fmt.Sprintf(" (%d)", current)
+	}
+	msg += "."
+	if ceiling > 0 && current > 0 && ceiling > current {
+		msg += fmt.Sprintf(" This model supports up to %d output tokens.", ceiling)
+	}
+	msg += "\n\nRaise it with --max-tokens N, KIT_MAX_TOKENS=N, " +
+		"or per-model modelSettings[provider/model].maxTokens in your config. " +
+		"Re-run the last prompt after raising it to get the full response."
+	return msg
+}
+
 // QuitFromExtension triggers a graceful shutdown. In interactive mode it
 // sends a tea.QuitMsg to the program so the TUI exits cleanly. In
 // non-interactive mode it cancels the root context, stopping any in-flight
@@ -930,7 +1022,8 @@ func (a *App) QuitFromExtension() {
 // controls styling: "" for plain text, "info" for a system message block,
 // "error" for an error block. In interactive mode it sends an
 // ExtensionPrintEvent through the program so the TUI can render it with the
-// appropriate renderer. In non-interactive mode it falls back to stdout.
+// appropriate renderer. In non-interactive mode it falls back to stderr with
+// a level prefix so errors are distinguishable from plain output.
 func (a *App) PrintFromExtension(level, text string) {
 	a.mu.Lock()
 	prog := a.program
@@ -939,8 +1032,16 @@ func (a *App) PrintFromExtension(level, text string) {
 		prog.Send(ExtensionPrintEvent{Text: text, Level: level})
 		return
 	}
-	// Non-interactive fallback: write directly to stdout.
-	fmt.Println(text)
+	// Non-interactive fallback: write to stderr with a level prefix so that
+	// errors and info messages are distinguishable from plain output.
+	switch level {
+	case "error":
+		fmt.Fprintf(os.Stderr, "[ERROR] %s\n", text)
+	case "info":
+		fmt.Fprintf(os.Stderr, "[INFO] %s\n", text)
+	default:
+		fmt.Println(text)
+	}
 }
 
 // SetEditorTextFromExtension sends an EditorTextSetEvent to the TUI to
@@ -1122,11 +1223,12 @@ func (a *App) PrintBlockFromExtension(opts extensions.PrintBlockOpts) {
 		})
 		return
 	}
-	// Non-interactive fallback.
+	// Non-interactive fallback: render a simple framed block to stderr so
+	// it is visually distinct from plain stdout output.
 	if opts.Subtitle != "" {
-		fmt.Printf("%s\n  — %s\n", opts.Text, opts.Subtitle)
+		fmt.Fprintf(os.Stderr, "--- %s ---\n%s\n", opts.Subtitle, opts.Text)
 	} else {
-		fmt.Println(opts.Text)
+		fmt.Fprintf(os.Stderr, "---\n%s\n---\n", opts.Text)
 	}
 }
 
@@ -1155,9 +1257,10 @@ func (a *App) recordStepUsage(ev kit.StepUsageEvent, stepUsageSeen *atomic.Bool)
 		int(ev.CacheWriteTokens),
 	)
 	// NOTE: We do NOT call SetContextTokens here. Context fill is set once
-	// at turn completion via updateUsageFromTurnResult using FinalUsage.InputTokens,
-	// which reflects the full accumulated context. Per-step context tokens would
-	// cause the display to jump around during multi-step tool calls.
+	// at turn completion via updateUsageFromTurnResult, which sums all token
+	// categories (Input + CacheRead + CacheCreate + Output) from FinalUsage.
+	// Per-step context tokens would cause the display to jump around during
+	// multi-step tool calls.
 }
 
 // updateUsageFromTurnResult records token usage from an SDK TurnResult into the
@@ -1221,15 +1324,30 @@ func (a *App) updateUsageFromTurnResult(result *kit.TurnResult, userPrompt strin
 	}
 
 	// --- Context window fill (drives the % bar) ---
-	// Use FinalUsage.InputTokens as the context window fill. The API's InputTokens
-	// already includes the full conversation history (system prompt + all previous
-	// messages + current user message). Adding OutputTokens would double-count since
-	// the output becomes part of the input for the next turn.
-	if result.FinalUsage != nil && result.FinalUsage.InputTokens > 0 {
-		if a.opts.Debug {
-			log.Printf("[DEBUG] updateUsageFromTurnResult: calling SetContextTokens=%d (FinalUsage.InputTokens)",
-				result.FinalUsage.InputTokens)
+	// Calculate context fill from the LAST API call's usage. The context
+	// window is filled by everything sent to and received from the model:
+	//
+	//   InputTokens       — non-cached input (may be small with prompt caching)
+	//   CacheReadTokens   — input tokens served from cache
+	//   CacheCreationTokens — input tokens written to cache this call
+	//   OutputTokens      — assistant output (becomes input next turn)
+	//
+	// With Anthropic prompt caching, InputTokens can drop to near-zero while
+	// CacheReadTokens holds the bulk of the context. We must sum all four to
+	// get the true context window utilization.
+	//
+	// We use FinalUsage (last step only), NOT TotalUsage, because TotalUsage
+	// sums across all tool-calling steps — and each step re-sends the full
+	// conversation, so TotalUsage massively overstates the actual window fill.
+	if result.FinalUsage != nil {
+		u := result.FinalUsage
+		contextFill := int(u.InputTokens) + int(u.CacheReadTokens) + int(u.CacheCreationTokens) + int(u.OutputTokens)
+		if contextFill > 0 {
+			if a.opts.Debug {
+				log.Printf("[DEBUG] updateUsageFromTurnResult: SetContextTokens=%d (Input=%d + CacheRead=%d + CacheCreate=%d + Output=%d)",
+					contextFill, u.InputTokens, u.CacheReadTokens, u.CacheCreationTokens, u.OutputTokens)
+			}
+			a.opts.UsageTracker.SetContextTokens(contextFill)
 		}
-		a.opts.UsageTracker.SetContextTokens(int(result.FinalUsage.InputTokens))
 	}
 }

internal/app/app_test.go

@@ -3,10 +3,12 @@ package app
 import (
 	"context"
 	"errors"
+	"strings"
 	"sync"
 	"testing"
 	"time"
 
+	tea "charm.land/bubbletea/v2"
 	kit "github.com/mark3labs/kit/pkg/kit"
 )
 
@@ -630,10 +632,12 @@ func TestUpdateUsageFromTurnResult_recordsWhenInputTokensZero(t *testing.T) {
 	}
 }
 
-// TestUpdateUsageFromTurnResult_contextTokensUsesInputOnly verifies that context
-// window fill uses InputTokens only (not input+output). The API's InputTokens
-// already includes the full conversation history; adding output would double-count.
-func TestUpdateUsageFromTurnResult_contextTokensUsesInputOnly(t *testing.T) {
+// TestUpdateUsageFromTurnResult_contextTokensUsesAllCategories verifies that
+// context window fill uses all token categories from the final API call:
+// InputTokens + CacheReadTokens + CacheCreationTokens + OutputTokens.
+// With Anthropic prompt caching, InputTokens can be near-zero while
+// CacheReadTokens holds the bulk of the context.
+func TestUpdateUsageFromTurnResult_contextTokensUsesAllCategories(t *testing.T) {
 	usage := &usageUpdaterStub{}
 	app := New(Options{UsageTracker: usage}, nil)
 	defer app.Close()
@@ -641,22 +645,117 @@ func TestUpdateUsageFromTurnResult_contextTokensUsesInputOnly(t *testing.T) {
 	app.updateUsageFromTurnResult(&kit.TurnResult{
 		Response: "ok",
 		TotalUsage: &kit.LLMUsage{
-			InputTokens:  1000,
-			OutputTokens: 200,
+			InputTokens:         3,
+			OutputTokens:        5,
+			CacheReadTokens:     0,
+			CacheCreationTokens: 4317,
 		},
 		FinalUsage: &kit.LLMUsage{
-			InputTokens:  1000, // Full context including history
-			OutputTokens: 200,
+			InputTokens:         3,    // Non-cached input (small with caching)
+			OutputTokens:        5,    // Assistant output
+			CacheReadTokens:     0,    // No cache reads on first call
+			CacheCreationTokens: 4317, // System prompt + tools written to cache
 		},
 	}, "prompt", false)
 
 	usage.mu.Lock()
 	defer usage.mu.Unlock()
 
-	// Context tokens should be InputTokens only (1000), not input+output (1200)
-	// because InputTokens already includes the full conversation history
-	if usage.contextCalls != 1 || usage.lastContextTokens != 1000 {
-		t.Fatalf("expected context tokens=1000 (InputTokens only), got calls=%d tokens=%d",
-			usage.contextCalls, usage.lastContextTokens)
+	// Context tokens should be Input + CacheRead + CacheCreate + Output = 4325
+	expected := 3 + 0 + 4317 + 5
+	if usage.contextCalls != 1 || usage.lastContextTokens != expected {
+		t.Fatalf("expected context tokens=%d (all categories), got calls=%d tokens=%d",
+			expected, usage.contextCalls, usage.lastContextTokens)
+	}
+}
+
+// TestHandleTurnEnd_LengthEmitsWarning verifies that when the SDK reports a
+// FinishReasonLength (max_output_tokens hit), the app surfaces a user-visible
+// ExtensionPrintEvent with Level="info" so the TUI can render a banner
+// instead of silently showing a truncated reply.
+func TestHandleTurnEnd_LengthEmitsWarning(t *testing.T) {
+	app := New(Options{}, nil)
+	defer app.Close()
+
+	var mu sync.Mutex
+	var received []tea.Msg
+	sendFn := func(m tea.Msg) {
+		mu.Lock()
+		defer mu.Unlock()
+		received = append(received, m)
+	}
+
+	app.handleTurnEnd(kit.TurnEndEvent{StopReason: kit.FinishReasonLength}, sendFn)
+
+	mu.Lock()
+	defer mu.Unlock()
+	if len(received) != 1 {
+		t.Fatalf("expected 1 event on length stop, got %d", len(received))
+	}
+	ev, ok := received[0].(ExtensionPrintEvent)
+	if !ok {
+		t.Fatalf("expected ExtensionPrintEvent, got %T", received[0])
+	}
+	if ev.Level != "info" {
+		t.Errorf("expected Level=info, got %q", ev.Level)
+	}
+	if ev.Text == "" {
+		t.Error("expected non-empty warning text")
+	}
+	if !strings.Contains(ev.Text, "max_output_tokens") {
+		t.Errorf("warning text should mention max_output_tokens, got: %s", ev.Text)
+	}
+}
+
+// TestHandleTurnEnd_NonLengthIgnored verifies that ordinary stop reasons
+// (stop, tool-calls, error, unknown, "") do not produce a warning banner.
+func TestHandleTurnEnd_NonLengthIgnored(t *testing.T) {
+	app := New(Options{}, nil)
+	defer app.Close()
+
+	reasons := []string{
+		kit.FinishReasonStop,
+		kit.FinishReasonToolCalls,
+		kit.FinishReasonError,
+		kit.FinishReasonContentFilter,
+		kit.FinishReasonOther,
+		kit.FinishReasonUnknown,
+		"",
+	}
+	for _, r := range reasons {
+		var called bool
+		app.handleTurnEnd(kit.TurnEndEvent{StopReason: r}, func(m tea.Msg) {
+			called = true
+		})
+		if called {
+			t.Errorf("stop reason %q unexpectedly emitted a warning", r)
+		}
+	}
+}
+
+// TestHandleTurnEnd_NilSendFn guards against panics when no TUI listener is
+// attached (e.g. early init or headless teardown).
+func TestHandleTurnEnd_NilSendFn(t *testing.T) {
+	app := New(Options{}, nil)
+	defer app.Close()
+
+	// Should not panic with a nil sendFn.
+	app.handleTurnEnd(kit.TurnEndEvent{StopReason: kit.FinishReasonLength}, nil)
+}
+
+// TestFormatMaxTokensTruncatedMessage_NoKit verifies the fallback message
+// when Options.Kit is nil (test/stub path).
+func TestFormatMaxTokensTruncatedMessage_NoKit(t *testing.T) {
+	app := New(Options{}, nil)
+	defer app.Close()
+
+	msg := app.formatMaxTokensTruncatedMessage()
+	if msg == "" {
+		t.Fatal("expected non-empty fallback message")
+	}
+	for _, needle := range []string{"max_output_tokens", "--max-tokens", "KIT_MAX_TOKENS", "modelSettings"} {
+		if !strings.Contains(msg, needle) {
+			t.Errorf("fallback message missing %q:\n%s", needle, msg)
+		}
 	}
 }

internal/app/events.go

@@ -79,6 +79,24 @@ type ToolCallContentEvent struct {
 	Content string
 }
 
+// PasswordPromptEvent is sent when a sudo command needs a password.
+// The TUI should display a password prompt overlay and send the result back.
+type PasswordPromptEvent struct {
+	// Prompt is the message to display to the user.
+	Prompt string
+	// ResponseCh receives the password from the TUI.
+	// The TUI must send exactly one value.
+	ResponseCh chan<- PasswordPromptResponse
+}
+
+// PasswordPromptResponse carries the user's password input.
+type PasswordPromptResponse struct {
+	// Password is the entered password.
+	Password string
+	// Cancelled is true if the user cancelled the prompt.
+	Cancelled bool
+}
+
 // ResponseCompleteEvent is sent when the LLM produces a final (non-streaming) response.
 // In streaming mode, this may be empty if all content was delivered via StreamChunkEvents.
 type ResponseCompleteEvent struct {

internal/app/messages_test.go

@@ -3,24 +3,21 @@ package app
 import (
 	"testing"
 
-	"charm.land/fantasy"
-
 	kit "github.com/mark3labs/kit/pkg/kit"
 )
 
-// makeTextMsg builds a minimal kit.LLMMessage using fantasy.NewUserMessage
-// or constructing with the given role.
+// makeTextMsg builds a minimal kit.LLMMessage with the given role and text.
 func makeTextMsg(role, text string) kit.LLMMessage {
 	return kit.LLMMessage{
 		Role:    kit.LLMMessageRole(role),
-		Content: []fantasy.MessagePart{fantasy.TextPart{Text: text}},
+		Content: []kit.LLMMessagePart{kit.LLMTextPart{Text: text}},
 	}
 }
 
 // textOf extracts the plain text from an LLMMessage for assertions.
 func textOf(msg kit.LLMMessage) string {
 	for _, part := range msg.Content {
-		if tp, ok := part.(fantasy.TextPart); ok {
+		if tp, ok := part.(kit.LLMTextPart); ok {
 			return tp.Text
 		}
 	}

internal/app/options.go

@@ -21,8 +21,10 @@ type UsageUpdater interface {
 	// the provider does not return exact counts.
 	EstimateAndUpdateUsage(inputText, outputText string)
 	// SetContextTokens records the approximate current context window fill
-	// level. This should be the final API call's input+output tokens (from
-	// FinalResponse.Usage), NOT the aggregate TotalUsage.
+	// level. This should be the sum of ALL token categories from the last
+	// API call: InputTokens + CacheReadTokens + CacheCreationTokens +
+	// OutputTokens. With Anthropic prompt caching, InputTokens can be
+	// near-zero while CacheReadTokens holds the bulk of the context.
 	SetContextTokens(tokens int)
 }
 

internal/auth/credentials.go

@@ -471,5 +471,13 @@ func GetAnthropicAPIKey(flagValue string) (string, string, error) {
 		return envKey, "ANTHROPIC_API_KEY environment variable", nil
 	}
 
+	// Check if OpenAI credentials exist to provide a helpful suggestion
+	if cm != nil {
+		hasOpenAI, _ := cm.HasOpenAICredentials()
+		if hasOpenAI {
+			return "", "", fmt.Errorf("no Anthropic API key found. Use 'kit auth login anthropic', set ANTHROPIC_API_KEY environment variable, or use --provider-api-key flag\n\nNote: OpenAI credentials were detected. To use OpenAI, run with --model openai/gpt-5.4 or set it as default:\n  kit auth login openai --set-default")
+		}
+	}
+
 	return "", "", fmt.Errorf("no Anthropic API key found. Use 'kit auth login anthropic', set ANTHROPIC_API_KEY environment variable, or use --provider-api-key flag")
 }

internal/config/config.go

@@ -22,6 +22,20 @@ type MCPServerConfig struct {
 	AllowedTools  []string          `json:"allowedTools,omitempty" yaml:"allowedTools,omitempty"`
 	ExcludedTools []string          `json:"excludedTools,omitempty" yaml:"excludedTools,omitempty"`
 
+	// OAuth configuration for remote servers that don't support dynamic
+	// client registration (e.g. GitHub). When OAuthClientID is set, it is
+	// passed directly to the transport's OAuthConfig instead of relying on
+	// dynamic registration.
+	OAuthClientID     string   `json:"oauthClientId,omitempty" yaml:"oauthClientId,omitempty"`
+	OAuthClientSecret string   `json:"oauthClientSecret,omitempty" yaml:"oauthClientSecret,omitempty"`
+	OAuthScopes       []string `json:"oauthScopes,omitempty" yaml:"oauthScopes,omitempty"`
+
+	// InProcessServer holds a live *server.MCPServer for in-process transport.
+	// When set (and Type is "inprocess"), the connection pool creates an
+	// in-process client instead of spawning a subprocess or making HTTP calls.
+	// This field is never serialized — it is only used programmatically via the SDK.
+	InProcessServer any `json:"-" yaml:"-"`
+
 	// Legacy fields for backward compatibility
 	Transport string         `json:"transport,omitempty"`
 	Args      []string       `json:"args,omitempty"`
@@ -35,13 +49,16 @@ type MCPServerConfig struct {
 func (s *MCPServerConfig) UnmarshalJSON(data []byte) error {
 	// First try to unmarshal as the new format
 	type newFormat struct {
-		Type          string            `json:"type"`
-		Command       []string          `json:"command,omitempty"`
-		Environment   map[string]string `json:"environment,omitempty"`
-		URL           string            `json:"url,omitempty"`
-		Headers       []string          `json:"headers,omitempty"`
-		AllowedTools  []string          `json:"allowedTools,omitempty" yaml:"allowedTools,omitempty"`
-		ExcludedTools []string          `json:"excludedTools,omitempty" yaml:"excludedTools,omitempty"`
+		Type              string            `json:"type"`
+		Command           []string          `json:"command,omitempty"`
+		Environment       map[string]string `json:"environment,omitempty"`
+		URL               string            `json:"url,omitempty"`
+		Headers           []string          `json:"headers,omitempty"`
+		AllowedTools      []string          `json:"allowedTools,omitempty" yaml:"allowedTools,omitempty"`
+		ExcludedTools     []string          `json:"excludedTools,omitempty" yaml:"excludedTools,omitempty"`
+		OAuthClientID     string            `json:"oauthClientId,omitempty" yaml:"oauthClientId,omitempty"`
+		OAuthClientSecret string            `json:"oauthClientSecret,omitempty" yaml:"oauthClientSecret,omitempty"`
+		OAuthScopes       []string          `json:"oauthScopes,omitempty" yaml:"oauthScopes,omitempty"`
 	}
 
 	// Also try legacy format
@@ -66,6 +83,9 @@ func (s *MCPServerConfig) UnmarshalJSON(data []byte) error {
 		s.Headers = newConfig.Headers
 		s.AllowedTools = newConfig.AllowedTools
 		s.ExcludedTools = newConfig.ExcludedTools
+		s.OAuthClientID = newConfig.OAuthClientID
+		s.OAuthClientSecret = newConfig.OAuthClientSecret
+		s.OAuthScopes = newConfig.OAuthScopes
 		return nil
 	}
 
@@ -157,6 +177,21 @@ type Theme struct {
 	Markdown MarkdownThemeConfig `json:"markdown,omitzero" yaml:"markdown,omitempty"`
 }
 
+// GenerationParams defines generation parameter defaults that can be attached
+// to individual models. These act as model-level defaults — CLI flags and
+// global config values take precedence when explicitly set.
+type GenerationParams struct {
+	MaxTokens        *int     `json:"maxTokens,omitempty" yaml:"maxTokens,omitempty"`
+	Temperature      *float32 `json:"temperature,omitempty" yaml:"temperature,omitempty"`
+	TopP             *float32 `json:"topP,omitempty" yaml:"topP,omitempty"`
+	TopK             *int32   `json:"topK,omitempty" yaml:"topK,omitempty"`
+	FrequencyPenalty *float32 `json:"frequencyPenalty,omitempty" yaml:"frequencyPenalty,omitempty"`
+	PresencePenalty  *float32 `json:"presencePenalty,omitempty" yaml:"presencePenalty,omitempty"`
+	StopSequences    []string `json:"stopSequences,omitempty" yaml:"stopSequences,omitempty"`
+	ThinkingLevel    string   `json:"thinkingLevel,omitempty" yaml:"thinkingLevel,omitempty"`
+	SystemPrompt     string   `json:"systemPrompt,omitempty" yaml:"systemPrompt,omitempty"`
+}
+
 // CustomModelConfig defines a custom model that can be used with custom/custom
 // or other custom/ prefixed models. These models are loaded from the config file
 // and merged into the custom provider in the model registry.
@@ -171,6 +206,11 @@ type CustomModelConfig struct {
 	Knowledge   string      `json:"knowledge,omitempty" yaml:"knowledge,omitempty"`
 	Cost        CostConfig  `json:"cost" yaml:"cost"`
 	Limit       LimitConfig `json:"limit" yaml:"limit"`
+
+	// Generation parameter defaults for this model.
+	// These are applied when the user hasn't explicitly set the corresponding
+	// CLI flag or global config value.
+	Params GenerationParams `json:"params,omitzero" yaml:"params,omitempty"`
 }
 
 // CostConfig defines the pricing for a custom model.
@@ -219,6 +259,12 @@ type Config struct {
 
 	// Custom model definitions (under custom/ provider)
 	CustomModels map[string]CustomModelConfig `json:"customModels,omitempty" yaml:"customModels,omitempty"`
+
+	// Per-model generation parameter overrides. Keys are "provider/model" strings
+	// (e.g. "anthropic/claude-sonnet-4-5-20250929", "openai/gpt-4o"). These
+	// settings act as model-level defaults — CLI flags and global config values
+	// take precedence when explicitly set.
+	ModelSettings map[string]GenerationParams `json:"modelSettings,omitempty" yaml:"modelSettings,omitempty"`
 }
 
 // GetTransportType returns the transport type for the server config, mapping
@@ -237,11 +283,18 @@ func (s *MCPServerConfig) GetTransportType() string {
 			return "stdio"
 		case "remote":
 			return "streamable"
+		case "inprocess":
+			return "inprocess"
 		default:
 			return s.Type
 		}
 	}
 
+	// Programmatic in-process server detection.
+	if s.InProcessServer != nil {
+		return "inprocess"
+	}
+
 	// Backward compatibility: infer transport type
 	if len(s.Command) > 0 {
 		return "stdio"
@@ -272,8 +325,12 @@ func (c *Config) Validate() error {
 			if serverConfig.URL == "" {
 				return fmt.Errorf("server %s: url is required for %s transport", serverName, transport)
 			}
+		case "inprocess":
+			if serverConfig.InProcessServer == nil {
+				return fmt.Errorf("server %s: InProcessServer is required for inprocess transport", serverName)
+			}
 		default:
-			return fmt.Errorf("server %s: unsupported transport type '%s'. Supported types: stdio, sse, streamable", serverName, transport)
+			return fmt.Errorf("server %s: unsupported transport type '%s'. Supported types: stdio, sse, streamable, inprocess", serverName, transport)
 		}
 	}
 	return nil
@@ -367,7 +424,7 @@ mcpServers:
 # debug: false                                 # Enable debug logging
 # system-prompt: "/path/to/system-prompt.txt" # System prompt text file
 
-# Model generation parameters (all optional)
+# Model generation parameters (all optional, apply globally to all models)
 # max-tokens: 4096                             # Maximum tokens in response
 # temperature: 0.7                             # Randomness (0.0-1.0)
 # top-p: 0.95                                  # Nucleus sampling (0.0-1.0)
@@ -376,9 +433,46 @@ mcpServers:
 # presence-penalty: 0.0                         # Penalize present tokens (0.0-2.0)
 # stop-sequences: ["Human:", "Assistant:"]     # Custom stop sequences
 
+# Per-model generation parameter overrides (apply to specific models)
+# These act as model-level defaults — CLI flags and global settings above take precedence.
+# Keys are "provider/model" strings matching the model you use.
+# modelSettings:
+#   anthropic/claude-sonnet-4-5-20250929:
+#     temperature: 0.3
+#     maxTokens: 8192
+#   openai/gpt-4o:
+#     temperature: 0.7
+#     topP: 0.95
+#     topK: 40
+#     frequencyPenalty: 0.1
+#     presencePenalty: 0.1
+#   anthropic/claude-opus-4-6:
+#     thinkingLevel: "high"
+#     maxTokens: 16384
+#     systemPrompt: "You are a deep reasoning assistant."  # or a file path
+
 # API Configuration (can also use environment variables)
 # provider-api-key: "your-api-key"         # API key for OpenAI, Anthropic, or Google
 # provider-url: "https://api.openai.com/v1" # Base URL for OpenAI, Anthropic, or Ollama
+
+# Custom model definitions (under custom/ provider)
+# customModels:
+#   my-local-llama:
+#     name: "Local Llama 3"
+#     baseUrl: "http://localhost:8080/v1"
+#     family: "llama"
+#     temperature: true
+#     cost:
+#       input: 0.0
+#       output: 0.0
+#     limit:
+#       context: 131072
+#       output: 8192
+#     params:                              # Generation parameter defaults for this model
+#       temperature: 0.8
+#       topP: 0.95
+#       topK: 40
+#       systemPrompt: "You are a helpful local assistant."
 `
 
 	_, err = file.WriteString(content)

internal/config/config_test.go

@@ -6,6 +6,8 @@ import (
 	"path/filepath"
 	"strings"
 	"testing"
+
+	"gopkg.in/yaml.v3"
 )
 
 func TestMCPServerConfig_NewFormat(t *testing.T) {
@@ -542,3 +544,86 @@ func TestEnsureConfigExistsWhenFileExists(t *testing.T) {
 		t.Error("Existing config file was modified when it shouldn't have been")
 	}
 }
+
+func TestMCPServerConfig_OAuthFields_JSON(t *testing.T) {
+	jsonData := `{
+		"type": "remote",
+		"url": "https://api.githubcopilot.com/mcp/",
+		"oauthClientId": "Ov23liXXXXXXXXXXXXXX",
+		"oauthClientSecret": "secret123",
+		"oauthScopes": ["read:user", "repo"]
+	}`
+
+	var cfg MCPServerConfig
+	err := json.Unmarshal([]byte(jsonData), &cfg)
+	if err != nil {
+		t.Fatalf("Failed to unmarshal: %v", err)
+	}
+
+	if cfg.Type != "remote" {
+		t.Errorf("Expected type 'remote', got %q", cfg.Type)
+	}
+	if cfg.URL != "https://api.githubcopilot.com/mcp/" {
+		t.Errorf("Expected URL, got %q", cfg.URL)
+	}
+	if cfg.OAuthClientID != "Ov23liXXXXXXXXXXXXXX" {
+		t.Errorf("Expected OAuthClientID 'Ov23liXXXXXXXXXXXXXX', got %q", cfg.OAuthClientID)
+	}
+	if cfg.OAuthClientSecret != "secret123" {
+		t.Errorf("Expected OAuthClientSecret 'secret123', got %q", cfg.OAuthClientSecret)
+	}
+	if len(cfg.OAuthScopes) != 2 || cfg.OAuthScopes[0] != "read:user" || cfg.OAuthScopes[1] != "repo" {
+		t.Errorf("Expected OAuthScopes [read:user, repo], got %v", cfg.OAuthScopes)
+	}
+}
+
+func TestMCPServerConfig_OAuthFields_YAML(t *testing.T) {
+	yamlData := `
+type: remote
+url: https://api.githubcopilot.com/mcp/
+oauthClientId: "Ov23liXXXXXXXXXXXXXX"
+oauthScopes:
+  - read:user
+  - repo
+`
+
+	var cfg MCPServerConfig
+	err := yaml.Unmarshal([]byte(yamlData), &cfg)
+	if err != nil {
+		t.Fatalf("Failed to unmarshal YAML: %v", err)
+	}
+
+	if cfg.Type != "remote" {
+		t.Errorf("Expected type 'remote', got %q", cfg.Type)
+	}
+	if cfg.OAuthClientID != "Ov23liXXXXXXXXXXXXXX" {
+		t.Errorf("Expected OAuthClientID 'Ov23liXXXXXXXXXXXXXX', got %q", cfg.OAuthClientID)
+	}
+	if len(cfg.OAuthScopes) != 2 || cfg.OAuthScopes[0] != "read:user" || cfg.OAuthScopes[1] != "repo" {
+		t.Errorf("Expected OAuthScopes [read:user, repo], got %v", cfg.OAuthScopes)
+	}
+}
+
+func TestMCPServerConfig_OAuthFields_Omitted(t *testing.T) {
+	// Verify that omitting OAuth fields still works (backward compat).
+	jsonData := `{
+		"type": "remote",
+		"url": "https://example.com/mcp"
+	}`
+
+	var cfg MCPServerConfig
+	err := json.Unmarshal([]byte(jsonData), &cfg)
+	if err != nil {
+		t.Fatalf("Failed to unmarshal: %v", err)
+	}
+
+	if cfg.OAuthClientID != "" {
+		t.Errorf("Expected empty OAuthClientID, got %q", cfg.OAuthClientID)
+	}
+	if cfg.OAuthClientSecret != "" {
+		t.Errorf("Expected empty OAuthClientSecret, got %q", cfg.OAuthClientSecret)
+	}
+	if len(cfg.OAuthScopes) != 0 {
+		t.Errorf("Expected empty OAuthScopes, got %v", cfg.OAuthScopes)
+	}
+}

internal/core/bash.go

@@ -19,10 +19,18 @@ import (
 // It receives tool call ID, tool name, output chunk, and whether it's stderr.
 type ToolOutputCallback func(toolCallID, toolName, chunk string, isStderr bool)
 
+// PasswordPromptCallback is the signature for password prompts.
+// It receives a prompt message and returns the password and whether it was cancelled.
+type PasswordPromptCallback func(prompt string) (password string, cancelled bool)
+
 // contextKey is a custom type for context keys to avoid collisions.
 type contextKey string
 
-const toolOutputCallbackKey contextKey = "toolOutputCallback"
+const (
+	toolOutputCallbackKey contextKey = "toolOutputCallback"
+	sudoPasswordKey       contextKey = "sudoPassword"
+	passwordPromptKey     contextKey = "passwordPrompt"
+)
 
 // ContextWithToolOutputCallback returns a new context with the tool output callback set.
 func ContextWithToolOutputCallback(ctx context.Context, callback ToolOutputCallback) context.Context {
@@ -37,6 +45,34 @@ func toolOutputCallbackFromContext(ctx context.Context) ToolOutputCallback {
 	return nil
 }
 
+// ContextWithPasswordPrompt returns a new context with the password prompt callback set.
+// This allows the TUI to show a modal password prompt when sudo needs a password.
+func ContextWithPasswordPrompt(ctx context.Context, callback PasswordPromptCallback) context.Context {
+	return context.WithValue(ctx, passwordPromptKey, callback)
+}
+
+// passwordPromptFromContext retrieves the password prompt callback from context.
+func passwordPromptFromContext(ctx context.Context) PasswordPromptCallback {
+	if cb, ok := ctx.Value(passwordPromptKey).(PasswordPromptCallback); ok {
+		return cb
+	}
+	return nil
+}
+
+// ContextWithSudoPassword returns a new context with the sudo password set.
+// When present, the bash tool will use sudo -S to pipe this password to sudo commands.
+func ContextWithSudoPassword(ctx context.Context, password string) context.Context {
+	return context.WithValue(ctx, sudoPasswordKey, password)
+}
+
+// sudoPasswordFromContext retrieves the sudo password from context.
+func sudoPasswordFromContext(ctx context.Context) string {
+	if pw, ok := ctx.Value(sudoPasswordKey).(string); ok {
+		return pw
+	}
+	return ""
+}
+
 const defaultBashTimeout = 120 * time.Second
 const maxBashTimeout = 600 * time.Second
 
@@ -73,6 +109,66 @@ func NewBashTool(opts ...ToolOption) fantasy.AgentTool {
 	}
 }
 
+// sudoCommandRe matches sudo commands that need to be rewritten for -S mode.
+// It matches "sudo" as a word boundary, optionally preceded by environment variables.
+var sudoCommandRe = regexp.MustCompile(`(?i)(^|[&|;|]|\|\||&&)\s*(\w+=\S+\s+)?\bsudo\b`)
+
+// truncateCommand truncates a long command for display.
+func truncateCommand(cmd string, maxLen int) string {
+	if len(cmd) <= maxLen {
+		return cmd
+	}
+	return cmd[:maxLen-3] + "..."
+}
+
+// rewriteSudoForStdin rewrites sudo commands to use -S -p ” for stdin password input.
+// It transforms: sudo cmd → sudo -S -p ” cmd
+func rewriteSudoForStdin(command string) string {
+	// Find all matches and their positions
+	matches := sudoCommandRe.FindAllStringIndex(command, -1)
+	if matches == nil {
+		return command
+	}
+
+	// Build result from end to start to preserve indices
+	result := command
+	for i := len(matches) - 1; i >= 0; i-- {
+		match := matches[i]
+		start, end := match[0], match[1]
+		matchedText := result[start:end]
+
+		// Extract just the "sudo" part (after any prefix)
+		sudoIdx := strings.Index(strings.ToLower(matchedText), "sudo")
+		if sudoIdx == -1 {
+			continue
+		}
+		prefix := matchedText[:sudoIdx]
+		sudoPart := matchedText[sudoIdx:]
+
+		// Check if the text immediately after "sudo" in the result contains -S
+		afterSudo := result[end:]
+		if strings.HasPrefix(strings.TrimLeft(afterSudo, " \t"), "-S") {
+			// Already has -S flag, skip
+			continue
+		}
+
+		// Insert -S -p '' after "sudo"
+		newSudo := strings.Replace(sudoPart, "sudo", "sudo -S -p ''", 1)
+		result = result[:start] + prefix + newSudo + result[end:]
+	}
+
+	return result
+}
+
+// SudoPasswordRequiredResult is a special marker that indicates sudo needs a password.
+// This is stored in tool response metadata to signal the TUI to prompt for password.
+const SudoPasswordRequiredMetadata = `{"sudo_password_required":true}`
+
+// IsSudoPasswordRequiredResult checks if a tool response indicates sudo password is needed.
+func IsSudoPasswordRequiredResult(resp fantasy.ToolResponse) bool {
+	return resp.Metadata == SudoPasswordRequiredMetadata
+}
+
 func executeBash(ctx context.Context, call fantasy.ToolCall, workDir string) (fantasy.ToolResponse, error) {
 	var args bashArgs
 	if err := parseArgs(call.Input, &args); err != nil {
@@ -97,7 +193,47 @@ func executeBash(ctx context.Context, call fantasy.ToolCall, workDir string) (fa
 	cmdCtx, cancel := context.WithTimeout(ctx, timeout)
 	defer cancel()
 
-	cmd := exec.CommandContext(cmdCtx, "bash", "-c", args.Command)
+	// Check for sudo password in context or environment
+	sudoPassword := sudoPasswordFromContext(ctx)
+	if sudoPassword == "" {
+		sudoPassword = os.Getenv("SUDO_PASSWORD")
+	}
+	command := args.Command
+
+	// If command contains sudo and we don't have a password, check if sudo needs one
+	if sudoPassword == "" && sudoCommandRe.MatchString(command) {
+		// Check if sudo credentials are cached using sudo -n (non-interactive)
+		testCmd := exec.CommandContext(cmdCtx, "sudo", "-n", "true")
+		testCmd.Dir = workDir
+		if err := testCmd.Run(); err != nil {
+			// Sudo needs a password - try to prompt via callback
+			if promptCallback := passwordPromptFromContext(ctx); promptCallback != nil {
+				pw, cancelled := promptCallback("Sudo password required for: " + truncateCommand(args.Command, 60))
+				if cancelled {
+					return fantasy.NewTextErrorResponse("sudo password prompt cancelled"), nil
+				}
+				if pw == "" {
+					return fantasy.NewTextErrorResponse("no sudo password provided"), nil
+				}
+				sudoPassword = pw
+				command = rewriteSudoForStdin(command)
+			} else {
+				// No callback available - return error with helpful message
+				return fantasy.NewTextErrorResponse(
+					"This command requires sudo access. " +
+						"Please run 'sudo -v' in your terminal first to cache credentials, " +
+						"or set the SUDO_PASSWORD environment variable."), nil
+			}
+		}
+		// Credentials are cached or password was provided, proceed
+	}
+
+	// If we have a sudo password, rewrite the command to use sudo -S
+	if sudoPassword != "" && sudoCommandRe.MatchString(command) {
+		command = rewriteSudoForStdin(command)
+	}
+
+	cmd := exec.CommandContext(cmdCtx, "bash", "-c", command)
 	if workDir != "" {
 		cmd.Dir = workDir
 	}
@@ -115,18 +251,18 @@ func executeBash(ctx context.Context, call fantasy.ToolCall, workDir string) (fa
 
 	if outputCallback != nil {
 		// Streaming mode: use pipes to capture output as it arrives
-		return executeBashStreaming(cmdCtx, call, cmd, outputCallback)
+		return executeBashStreaming(cmdCtx, call, cmd, outputCallback, sudoPassword)
 	}
 
 	// Non-streaming mode: collect all output at once (original behavior)
-	return executeBashBuffered(cmdCtx, call, cmd)
+	return executeBashBuffered(cmdCtx, call, cmd, sudoPassword)
 }
 
 // executeBashBuffered collects all output before returning (original behavior).
 // It uses explicit pipes (not cmd.Stdout) so that cmd.WaitDelay can forcibly
 // close them when grandchild processes hold pipe handles open after the
 // direct child exits.
-func executeBashBuffered(cmdCtx context.Context, call fantasy.ToolCall, cmd *exec.Cmd) (fantasy.ToolResponse, error) {
+func executeBashBuffered(cmdCtx context.Context, call fantasy.ToolCall, cmd *exec.Cmd, sudoPassword string) (fantasy.ToolResponse, error) {
 	stdoutPipe, err := cmd.StdoutPipe()
 	if err != nil {
 		return fantasy.NewTextErrorResponse("failed to create stdout pipe"), nil
@@ -136,10 +272,27 @@ func executeBashBuffered(cmdCtx context.Context, call fantasy.ToolCall, cmd *exe
 		return fantasy.NewTextErrorResponse("failed to create stderr pipe"), nil
 	}
 
+	// If we have a sudo password, create a stdin pipe and write the password
+	var stdinPipe io.WriteCloser
+	if sudoPassword != "" {
+		stdinPipe, err = cmd.StdinPipe()
+		if err != nil {
+			return fantasy.NewTextErrorResponse("failed to create stdin pipe"), nil
+		}
+	}
+
 	if err := cmd.Start(); err != nil {
 		return fantasy.NewTextErrorResponse(fmt.Sprintf("failed to start command: %v", err)), nil
 	}
 
+	// Write password to stdin if needed, then close stdin
+	if sudoPassword != "" && stdinPipe != nil {
+		go func() {
+			defer func() { _ = stdinPipe.Close() }()
+			_, _ = io.WriteString(stdinPipe, sudoPassword+"\n")
+		}()
+	}
+
 	// Read pipes concurrently
 	var wg sync.WaitGroup
 	var stdout, stderr strings.Builder
@@ -181,7 +334,7 @@ func executeBashBuffered(cmdCtx context.Context, call fantasy.ToolCall, cmd *exe
 }
 
 // executeBashStreaming streams output as it arrives via the callback.
-func executeBashStreaming(cmdCtx context.Context, call fantasy.ToolCall, cmd *exec.Cmd, outputCallback ToolOutputCallback) (fantasy.ToolResponse, error) {
+func executeBashStreaming(cmdCtx context.Context, call fantasy.ToolCall, cmd *exec.Cmd, outputCallback ToolOutputCallback, sudoPassword string) (fantasy.ToolResponse, error) {
 	stdoutPipe, err := cmd.StdoutPipe()
 	if err != nil {
 		return fantasy.NewTextErrorResponse("failed to create stdout pipe"), nil
@@ -191,11 +344,28 @@ func executeBashStreaming(cmdCtx context.Context, call fantasy.ToolCall, cmd *ex
 		return fantasy.NewTextErrorResponse("failed to create stderr pipe"), nil
 	}
 
+	// If we have a sudo password, create a stdin pipe
+	var stdinPipe io.WriteCloser
+	if sudoPassword != "" {
+		stdinPipe, err = cmd.StdinPipe()
+		if err != nil {
+			return fantasy.NewTextErrorResponse("failed to create stdin pipe"), nil
+		}
+	}
+
 	// Start command execution
 	if err := cmd.Start(); err != nil {
 		return fantasy.NewTextErrorResponse(fmt.Sprintf("failed to start command: %v", err)), nil
 	}
 
+	// Write password to stdin if needed, then close stdin
+	if sudoPassword != "" && stdinPipe != nil {
+		go func() {
+			defer func() { _ = stdinPipe.Close() }()
+			_, _ = io.WriteString(stdinPipe, sudoPassword+"\n")
+		}()
+	}
+
 	// Stream stdout and stderr concurrently
 	var wg sync.WaitGroup
 	var mu sync.Mutex

internal/core/bash_test.go

@@ -127,3 +127,72 @@ func TestBash_EmptyCommand(t *testing.T) {
 		t.Fatal("expected error for empty command")
 	}
 }
+
+func TestRewriteSudoForStdin(t *testing.T) {
+	tests := []struct {
+		name     string
+		input    string
+		expected string
+	}{
+		{
+			name:     "simple sudo",
+			input:    "sudo apt update",
+			expected: "sudo -S -p '' apt update",
+		},
+		{
+			name:     "sudo with env var",
+			input:    "DEBIAN_FRONTEND=noninteractive sudo apt update",
+			expected: "DEBIAN_FRONTEND=noninteractive sudo -S -p '' apt update",
+		},
+		{
+			name:     "sudo in pipeline",
+			input:    "echo test | sudo tee /etc/test.conf",
+			expected: "echo test | sudo -S -p '' tee /etc/test.conf",
+		},
+		{
+			name:     "sudo after &&",
+			input:    "apt update && sudo apt upgrade",
+			expected: "apt update && sudo -S -p '' apt upgrade",
+		},
+		{
+			name:     "already has -S flag",
+			input:    "sudo -S apt update",
+			expected: "sudo -S apt update",
+		},
+		{
+			name:     "no sudo",
+			input:    "apt update && apt upgrade",
+			expected: "apt update && apt upgrade",
+		},
+		{
+			name:     "sudo in string (should not match)",
+			input:    "echo 'use sudo carefully'",
+			expected: "echo 'use sudo carefully'",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			result := rewriteSudoForStdin(tt.input)
+			if result != tt.expected {
+				t.Errorf("rewriteSudoForStdin(%q) = %q, want %q", tt.input, result, tt.expected)
+			}
+		})
+	}
+}
+
+func TestSudoPasswordFromContext(t *testing.T) {
+	// Test with password in context
+	ctx := ContextWithSudoPassword(context.Background(), "secret123")
+	pw := sudoPasswordFromContext(ctx)
+	if pw != "secret123" {
+		t.Errorf("expected password 'secret123', got %q", pw)
+	}
+
+	// Test without password
+	ctx = context.Background()
+	pw = sudoPasswordFromContext(ctx)
+	if pw != "" {
+		t.Errorf("expected empty password, got %q", pw)
+	}
+}

internal/core/subagent.go

@@ -86,7 +86,7 @@ Example use cases:
 				},
 				"model": map[string]any{
 					"type":        "string",
-					"description": "Optional model override (e.g. 'anthropic/claude-haiku-3-5-20241022' for faster/cheaper tasks)",
+					"description": "Optional model override. Empty string uses the current model.",
 				},
 				"system_prompt": map[string]any{
 					"type":        "string",
@@ -94,7 +94,7 @@ Example use cases:
 				},
 				"timeout_seconds": map[string]any{
 					"type":        "number",
-					"description": "Maximum execution time in seconds (default: 300, max: 1800)",
+					"description": "Maximum execution time in seconds (default: 300, max: 1800, minimum recommended: 240)",
 				},
 			},
 			Required: []string{"task"},

internal/extensions/api.go

@@ -918,7 +918,7 @@ type ExtensionEntry struct {
 type ContextMessage struct {
 	// Index is the position of this message in the original context array
 	// (0-based). When returning messages from a ContextPrepareResult,
-	// messages with Index >= 0 reuse the original fantasy.Message at that
+	// messages with Index >= 0 reuse the original LLM message at that
 	// position (preserving tool calls, reasoning, and other complex parts).
 	// Set Index to -1 for newly injected messages (created from Role + Content).
 	Index int

internal/extensions/runner.go

@@ -1,21 +1,93 @@
 package extensions
 
 import (
+	"bytes"
 	"fmt"
 	"log"
 	"os"
+	"runtime"
 	"sort"
+	"strconv"
 	"strings"
 	"sync"
 
 	"github.com/spf13/viper"
 )
 
+// ---------------------------------------------------------------------------
+// reentrantMu — a per-extension mutex that allows the same goroutine to
+// re-enter (e.g. handler → ctx.EmitCustomEvent → handler in same extension).
+// Different goroutines are serialized, preventing concurrent state mutation.
+// ---------------------------------------------------------------------------
+
+type reentrantMu struct {
+	mu    sync.Mutex
+	cond  *sync.Cond
+	owner int64 // goroutine ID that holds the lock, or 0
+	depth int   // re-entrancy depth
+}
+
+// initReentrantMu initializes the reentrant mutex in-place. Must be called
+// after the struct is at its final memory location (not before copying).
+func (r *reentrantMu) init() {
+	r.cond = sync.NewCond(&r.mu)
+}
+
+// lock acquires the mutex. If the calling goroutine already holds it, the
+// call succeeds immediately (re-entrant). Every call to lock must be paired
+// with a call to unlock.
+func (r *reentrantMu) lock() {
+	gid := goroutineID()
+	r.mu.Lock()
+	if r.owner == gid {
+		// Re-entrant: same goroutine already holds the lock.
+		r.depth++
+		r.mu.Unlock()
+		return
+	}
+	// Wait for the current owner to release.
+	for r.owner != 0 {
+		r.cond.Wait() // releases mu, blocks, re-acquires mu on wake
+	}
+	r.owner = gid
+	r.depth = 1
+	r.mu.Unlock()
+}
+
+// unlock releases the mutex (or decrements re-entrancy depth).
+func (r *reentrantMu) unlock() {
+	r.mu.Lock()
+	r.depth--
+	if r.depth == 0 {
+		r.owner = 0
+		r.cond.Signal()
+	}
+	r.mu.Unlock()
+}
+
+// goroutineID extracts the current goroutine's ID from runtime.Stack output.
+// This is a well-known technique used by Go testing infrastructure.
+func goroutineID() int64 {
+	var buf [64]byte
+	n := runtime.Stack(buf[:], false)
+	// Stack output starts with "goroutine NNN ["
+	s := buf[:n]
+	s = s[len("goroutine "):]
+	s = s[:bytes.IndexByte(s, ' ')]
+	id, _ := strconv.ParseInt(string(s), 10, 64)
+	return id
+}
+
 // Runner manages loaded extensions and dispatches events to their handlers
 // sequentially. Handlers execute in extension
 // load order; for cancellable events the first blocking result wins.
+//
+// Each extension has a dedicated reentrant mutex so that handlers for the
+// same extension are serialized (preventing data races on shared package-level
+// state), while handlers for different extensions may execute concurrently.
 type Runner struct {
 	extensions      []LoadedExtension
+	extMu           []reentrantMu // per-extension reentrant mutex, indexed by extension position
 	ctx             Context
 	widgets         map[string]WidgetConfig   // keyed by widget ID
 	statusEntries   map[string]StatusBarEntry // keyed by status key
@@ -52,7 +124,11 @@ type LoadedExtension struct {
 
 // NewRunner creates a Runner from a set of loaded extensions.
 func NewRunner(exts []LoadedExtension) *Runner {
-	return &Runner{extensions: exts}
+	mus := make([]reentrantMu, len(exts))
+	for i := range mus {
+		mus[i].init()
+	}
+	return &Runner{extensions: exts, extMu: mus}
 }
 
 // SetContext updates the runtime context (session ID, model, etc.) that is
@@ -367,6 +443,11 @@ func (r *Runner) Emit(event Event) (Result, error) {
 	for i := range r.extensions {
 		ext := &r.extensions[i]
 		handlers := ext.Handlers[event.Type()]
+		if len(handlers) == 0 {
+			continue
+		}
+
+		r.extMu[i].lock()
 		for _, handler := range handlers {
 			result, err := safeCall(handler, event, ctx)
 			if err != nil {
@@ -379,6 +460,7 @@ func (r *Runner) Emit(event Event) (Result, error) {
 
 			// Check for blocking/short-circuit results.
 			if isBlocking(result) {
+				r.extMu[i].unlock()
 				return result, nil
 			}
 
@@ -386,6 +468,7 @@ func (r *Runner) Emit(event Event) (Result, error) {
 			// the caller is responsible for applying the modifications.
 			accumulated = result
 		}
+		r.extMu[i].unlock()
 	}
 	return accumulated, nil
 }
@@ -712,11 +795,17 @@ func (r *Runner) EmitCustomEvent(name, data string) {
 
 	// Extension-registered handlers first (in load order).
 	for i := range r.extensions {
-		for _, h := range r.extensions[i].CustomEventHandlers[name] {
+		extHandlers := r.extensions[i].CustomEventHandlers[name]
+		if len(extHandlers) == 0 {
+			continue
+		}
+		r.extMu[i].lock()
+		for _, h := range extHandlers {
 			safeInvoke(h)
 		}
+		r.extMu[i].unlock()
 	}
-	// Then dynamic subscriptions.
+	// Then dynamic subscriptions (not extension-scoped, no per-ext lock).
 	for _, h := range dynamicHandlers {
 		safeInvoke(h)
 	}

internal/extensions/runner_test.go

@@ -1,6 +1,7 @@
 package extensions
 
 import (
+	"sync"
 	"testing"
 )
 
@@ -571,3 +572,142 @@ func TestRunner_ContextPrintNilSafe(t *testing.T) {
 		t.Fatalf("unexpected error: %v", err)
 	}
 }
+
+func TestRunner_ConcurrentEmitSameExtension(t *testing.T) {
+	// Verify that concurrent Emit calls for the same extension are serialized
+	// and don't cause data races on shared handler state.
+	var counter int
+	ext := makeHandlerExt("shared-state.go", map[EventType][]HandlerFunc{
+		SubagentStart: {
+			func(e Event, c Context) Result {
+				// Read-modify-write: racy without serialization.
+				v := counter
+				counter = v + 1
+				return nil
+			},
+		},
+		SubagentChunk: {
+			func(e Event, c Context) Result {
+				v := counter
+				counter = v + 1
+				return nil
+			},
+		},
+	})
+
+	r := makeRunner(ext)
+	var wg sync.WaitGroup
+	const goroutines = 20
+	const iterations = 50
+	wg.Add(goroutines)
+	for range goroutines {
+		go func() {
+			defer wg.Done()
+			for range iterations {
+				_, _ = r.Emit(SubagentStartEvent{ToolCallID: "x"})
+				_, _ = r.Emit(SubagentChunkEvent{ToolCallID: "x"})
+			}
+		}()
+	}
+	wg.Wait()
+	if counter != goroutines*iterations*2 {
+		t.Errorf("expected counter=%d, got %d (race detected)", goroutines*iterations*2, counter)
+	}
+}
+
+func TestRunner_ConcurrentEmitDifferentExtensions(t *testing.T) {
+	// Two extensions with independent state should not block each other
+	// and should both run correctly under concurrent Emit calls.
+	var counter1, counter2 int
+	ext1 := makeHandlerExt("ext1.go", map[EventType][]HandlerFunc{
+		SubagentStart: {
+			func(e Event, c Context) Result {
+				v := counter1
+				counter1 = v + 1
+				return nil
+			},
+		},
+	})
+	ext2 := makeHandlerExt("ext2.go", map[EventType][]HandlerFunc{
+		SubagentStart: {
+			func(e Event, c Context) Result {
+				v := counter2
+				counter2 = v + 1
+				return nil
+			},
+		},
+	})
+
+	r := makeRunner(ext1, ext2)
+	var wg sync.WaitGroup
+	const goroutines = 20
+	const iterations = 50
+	wg.Add(goroutines)
+	for range goroutines {
+		go func() {
+			defer wg.Done()
+			for range iterations {
+				_, _ = r.Emit(SubagentStartEvent{ToolCallID: "x"})
+			}
+		}()
+	}
+	wg.Wait()
+	expected := goroutines * iterations
+	if counter1 != expected {
+		t.Errorf("ext1 counter: expected %d, got %d", expected, counter1)
+	}
+	if counter2 != expected {
+		t.Errorf("ext2 counter: expected %d, got %d", expected, counter2)
+	}
+}
+
+func TestRunner_ReentrantEmitCustomEvent(t *testing.T) {
+	// Verify that a handler can call EmitCustomEvent (which dispatches to
+	// the same extension's custom event handlers) without deadlocking.
+	var order []string
+	ext := LoadedExtension{
+		Path: "reentrant.go",
+		Handlers: map[EventType][]HandlerFunc{
+			SessionStart: {
+				func(e Event, c Context) Result {
+					order = append(order, "session_start")
+					// This triggers EmitCustomEvent for the same extension
+					// via a direct runner call (simulating ctx.EmitCustomEvent).
+					return nil
+				},
+			},
+		},
+		CustomEventHandlers: map[string][]func(string){
+			"test-event": {
+				func(data string) {
+					order = append(order, "custom:"+data)
+				},
+			},
+		},
+	}
+
+	r := makeRunner(ext)
+
+	// Wire up the handler to call EmitCustomEvent re-entrantly.
+	ext.Handlers[SessionStart] = []HandlerFunc{
+		func(e Event, c Context) Result {
+			order = append(order, "session_start")
+			r.EmitCustomEvent("test-event", "hello")
+			return nil
+		},
+	}
+	r.extensions[0] = ext
+	// Rebuild mutexes after modifying extensions slice.
+	r.extMu = make([]reentrantMu, len(r.extensions))
+	for i := range r.extMu {
+		r.extMu[i].init()
+	}
+
+	_, err := r.Emit(SessionStartEvent{})
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if len(order) != 2 || order[0] != "session_start" || order[1] != "custom:hello" {
+		t.Errorf("expected [session_start, custom:hello], got %v", order)
+	}
+}

internal/extensions/wrapper.go

@@ -28,11 +28,11 @@ func WrapToolsWithExtensions(tools []fantasy.AgentTool, runner *Runner) []fantas
 	return wrapped
 }
 
-// ExtensionToolsAsFantasy converts ToolDef values registered by extensions
-// into fantasy.AgentTool implementations so the LLM can invoke them.
+// ExtensionToolsAsLLMTools converts ToolDef values registered by extensions
+// into LLM agent tool implementations so the LLM can invoke them.
 // The runner is optional; if provided, ToolContext.OnProgress routes
 // progress messages through the runner's Print function.
-func ExtensionToolsAsFantasy(defs []ToolDef, runner *Runner) []fantasy.AgentTool {
+func ExtensionToolsAsLLMTools(defs []ToolDef, runner *Runner) []fantasy.AgentTool {
 	tools := make([]fantasy.AgentTool, 0, len(defs))
 	for _, def := range defs {
 		tools = append(tools, &extensionTool{def: def, runner: runner})
@@ -154,7 +154,7 @@ func (w *wrappedTool) Run(ctx context.Context, call fantasy.ToolCall) (fantasy.T
 }
 
 // ---------------------------------------------------------------------------
-// extensionTool — wraps a ToolDef into a fantasy.AgentTool
+// extensionTool — wraps a ToolDef into an LLM agent tool
 // ---------------------------------------------------------------------------
 
 type extensionTool struct {
@@ -182,7 +182,7 @@ func (t *extensionTool) Info() fantasy.ToolInfo {
 				info.Parameters = props
 			} else {
 				// Schema doesn't have "properties" — use as-is (may be
-				// a flat property map already matching fantasy's format).
+				// a flat property map already matching the expected format).
 				info.Parameters = schema
 			}
 			// Extract required fields if present.

internal/extensions/wrapper_test.go

@@ -192,7 +192,7 @@ func TestWrappedTool_ExecutionStartEnd(t *testing.T) {
 	}
 }
 
-func TestExtensionToolsAsFantasy(t *testing.T) {
+func TestExtensionToolsAsLLMTools(t *testing.T) {
 	defs := []ToolDef{
 		{
 			Name:        "greet",
@@ -202,7 +202,7 @@ func TestExtensionToolsAsFantasy(t *testing.T) {
 		},
 	}
 
-	tools := ExtensionToolsAsFantasy(defs, nil)
+	tools := ExtensionToolsAsLLMTools(defs, nil)
 	if len(tools) != 1 {
 		t.Fatalf("expected 1 tool, got %d", len(tools))
 	}
@@ -232,7 +232,7 @@ func TestExtensionTool_Error(t *testing.T) {
 		},
 	}
 
-	tools := ExtensionToolsAsFantasy(defs, nil)
+	tools := ExtensionToolsAsLLMTools(defs, nil)
 	resp, err := tools[0].Run(context.Background(), fantasy.ToolCall{Input: "x"})
 	if err == nil {
 		t.Error("expected error")
@@ -259,7 +259,7 @@ func TestExtensionTool_ExecuteWithContext(t *testing.T) {
 	}
 
 	// Without runner, OnProgress is a no-op.
-	tools := ExtensionToolsAsFantasy(defs, nil)
+	tools := ExtensionToolsAsLLMTools(defs, nil)
 	resp, err := tools[0].Run(context.Background(), fantasy.ToolCall{Input: "test"})
 	if err != nil {
 		t.Fatalf("unexpected error: %v", err)
@@ -285,7 +285,7 @@ func TestExtensionTool_ExecuteWithContext(t *testing.T) {
 			},
 		},
 	}
-	tools2 := ExtensionToolsAsFantasy(defs2, runner)
+	tools2 := ExtensionToolsAsLLMTools(defs2, runner)
 	_, err = tools2[0].Run(context.Background(), fantasy.ToolCall{Input: ""})
 	if err != nil {
 		t.Fatalf("unexpected error: %v", err)
@@ -306,7 +306,7 @@ func TestExtensionTool_ExecuteWithContextPriority(t *testing.T) {
 			},
 		},
 	}
-	tools := ExtensionToolsAsFantasy(defs, nil)
+	tools := ExtensionToolsAsLLMTools(defs, nil)
 	resp, err := tools[0].Run(context.Background(), fantasy.ToolCall{Input: ""})
 	if err != nil {
 		t.Fatalf("unexpected error: %v", err)
@@ -330,7 +330,7 @@ func TestExtensionTool_CancelledContext(t *testing.T) {
 			},
 		},
 	}
-	tools := ExtensionToolsAsFantasy(defs, nil)
+	tools := ExtensionToolsAsLLMTools(defs, nil)
 	_, _ = tools[0].Run(ctx, fantasy.ToolCall{Input: ""})
 	if !sawCancelled {
 		t.Error("expected IsCancelled=true for cancelled context")
@@ -339,7 +339,7 @@ func TestExtensionTool_CancelledContext(t *testing.T) {
 
 func TestExtensionTool_ProviderOptions(t *testing.T) {
 	defs := []ToolDef{{Name: "test", Execute: func(string) (string, error) { return "", nil }}}
-	tools := ExtensionToolsAsFantasy(defs, nil)
+	tools := ExtensionToolsAsLLMTools(defs, nil)
 
 	// Initially nil.
 	opts := tools[0].ProviderOptions()

internal/fences/fences.go

@@ -0,0 +1,248 @@
+// Package fences provides utilities for detecting markdown code regions
+// (fenced code blocks and inline code spans) and applying transformations
+// only to text outside those regions.
+//
+// This prevents special tokens like $1, $@, or @file from being interpreted
+// when they appear inside ``` fences, ~~~ fences, or `inline` code spans.
+package fences
+
+import "strings"
+
+// Ranges returns byte ranges [start, end) of fenced code blocks in content.
+// Recognises both backtick (```) and tilde (~~~) fences, with optional
+// leading indentation (up to 3 spaces) and optional info strings.
+// An unclosed fence extends to the end of content.
+func Ranges(content string) [][2]int {
+	var result [][2]int
+	var inFence bool
+	var fenceChar byte
+	var fenceCount int
+	var fenceStart int
+
+	pos := 0
+	for pos < len(content) {
+		// Find the end of the current line.
+		lineEnd := strings.IndexByte(content[pos:], '\n')
+		var line string
+		var nextPos int
+		if lineEnd < 0 {
+			line = content[pos:]
+			nextPos = len(content)
+		} else {
+			line = content[pos : pos+lineEnd]
+			nextPos = pos + lineEnd + 1
+		}
+
+		trimmed := strings.TrimLeft(line, " ")
+		indent := len(line) - len(trimmed)
+
+		if !inFence {
+			if indent <= 3 {
+				if ch, n := parseFenceOpen(trimmed); n > 0 {
+					inFence = true
+					fenceChar = ch
+					fenceCount = n
+					fenceStart = pos
+				}
+			}
+		} else {
+			if indent <= 3 && isFenceClose(trimmed, fenceChar, fenceCount) {
+				result = append(result, [2]int{fenceStart, nextPos})
+				inFence = false
+			}
+		}
+
+		pos = nextPos
+	}
+
+	// Unclosed fence extends to end of content.
+	if inFence {
+		result = append(result, [2]int{fenceStart, len(content)})
+	}
+
+	return result
+}
+
+// ReplaceOutside applies fn to each text segment that is outside fenced code
+// blocks and inline code spans, leaving code content unchanged. This is the
+// primary entry point for callers that need to do regex replacement only on
+// non-code text.
+func ReplaceOutside(content string, fn func(string) string) string {
+	ranges := Ranges(content)
+	if len(ranges) == 0 {
+		return replaceOutsideInline(content, fn)
+	}
+
+	var b strings.Builder
+	b.Grow(len(content))
+	pos := 0
+	for _, r := range ranges {
+		if pos < r[0] {
+			// Within non-fenced segments, also skip inline code spans.
+			b.WriteString(replaceOutsideInline(content[pos:r[0]], fn))
+		}
+		// Preserve fenced content verbatim.
+		b.WriteString(content[r[0]:r[1]])
+		pos = r[1]
+	}
+	if pos < len(content) {
+		b.WriteString(replaceOutsideInline(content[pos:], fn))
+	}
+	return b.String()
+}
+
+// StripCode returns content with fenced code blocks and inline code spans
+// removed. Useful for detection/matching where only non-code text matters.
+func StripCode(content string) string {
+	// First strip fenced blocks.
+	stripped := StripFenced(content)
+	// Then strip inline code spans from what remains.
+	return stripInlineCode(stripped)
+}
+
+// StripFenced returns content with fenced code block regions removed.
+// Useful for detection/matching where only non-fenced text matters.
+// NOTE: this does NOT strip inline code spans; use StripCode for both.
+func StripFenced(content string) string {
+	ranges := Ranges(content)
+	if len(ranges) == 0 {
+		return content
+	}
+
+	var b strings.Builder
+	b.Grow(len(content))
+	pos := 0
+	for _, r := range ranges {
+		b.WriteString(content[pos:r[0]])
+		pos = r[1]
+	}
+	b.WriteString(content[pos:])
+	return b.String()
+}
+
+// parseFenceOpen checks whether trimmed (leading spaces already removed)
+// starts a fenced code block. Returns the fence character and count, or
+// (0, 0) if it is not a fence opener.
+func parseFenceOpen(trimmed string) (byte, int) {
+	if len(trimmed) == 0 {
+		return 0, 0
+	}
+	ch := trimmed[0]
+	if ch != '`' && ch != '~' {
+		return 0, 0
+	}
+	count := 0
+	for count < len(trimmed) && trimmed[count] == ch {
+		count++
+	}
+	if count < 3 {
+		return 0, 0
+	}
+	// Per CommonMark: backtick fences cannot have backticks in the info string.
+	if ch == '`' && strings.ContainsRune(trimmed[count:], '`') {
+		return 0, 0
+	}
+	return ch, count
+}
+
+// isFenceClose checks whether trimmed is a closing fence matching fenceChar
+// with at least minCount characters. A closing fence line contains only the
+// fence characters and optional trailing spaces.
+func isFenceClose(trimmed string, fenceChar byte, minCount int) bool {
+	if len(trimmed) == 0 || trimmed[0] != fenceChar {
+		return false
+	}
+	count := 0
+	for count < len(trimmed) && trimmed[count] == fenceChar {
+		count++
+	}
+	if count < minCount {
+		return false
+	}
+	// Closing fence must contain only fence chars (and optional trailing spaces).
+	return strings.TrimRight(trimmed[count:], " ") == ""
+}
+
+// --------------------------------------------------------------------------
+// Inline code span handling
+// --------------------------------------------------------------------------
+
+// inlineCodeRanges returns byte ranges [start, end) of inline code spans
+// in segment. Per CommonMark, a code span opens with N backticks and closes
+// with exactly N backticks.
+func inlineCodeRanges(s string) [][2]int {
+	var result [][2]int
+	i := 0
+	for i < len(s) {
+		if s[i] != '`' {
+			i++
+			continue
+		}
+		// Count opening backticks.
+		start := i
+		n := 0
+		for i < len(s) && s[i] == '`' {
+			n++
+			i++
+		}
+		// Scan for a closing run of exactly n backticks.
+		for j := i; j < len(s); {
+			if s[j] != '`' {
+				j++
+				continue
+			}
+			m := 0
+			for j < len(s) && s[j] == '`' {
+				m++
+				j++
+			}
+			if m == n {
+				result = append(result, [2]int{start, j})
+				i = j
+				break
+			}
+		}
+		// If no closing run was found, i is already past the opening
+		// backticks so the outer loop advances naturally.
+	}
+	return result
+}
+
+// replaceOutsideInline applies fn only to text outside inline code spans.
+func replaceOutsideInline(segment string, fn func(string) string) string {
+	ranges := inlineCodeRanges(segment)
+	if len(ranges) == 0 {
+		return fn(segment)
+	}
+	var b strings.Builder
+	b.Grow(len(segment))
+	pos := 0
+	for _, r := range ranges {
+		if pos < r[0] {
+			b.WriteString(fn(segment[pos:r[0]]))
+		}
+		b.WriteString(segment[r[0]:r[1]])
+		pos = r[1]
+	}
+	if pos < len(segment) {
+		b.WriteString(fn(segment[pos:]))
+	}
+	return b.String()
+}
+
+// stripInlineCode removes inline code spans from s.
+func stripInlineCode(s string) string {
+	ranges := inlineCodeRanges(s)
+	if len(ranges) == 0 {
+		return s
+	}
+	var b strings.Builder
+	b.Grow(len(s))
+	pos := 0
+	for _, r := range ranges {
+		b.WriteString(s[pos:r[0]])
+		pos = r[1]
+	}
+	b.WriteString(s[pos:])
+	return b.String()
+}

internal/fences/fences_test.go

@@ -0,0 +1,313 @@
+package fences
+
+import (
+	"testing"
+)
+
+func TestRanges(t *testing.T) {
+	tests := []struct {
+		name    string
+		content string
+		want    [][2]int
+	}{
+		{
+			name:    "no fences",
+			content: "hello world\nno code here",
+			want:    nil,
+		},
+		{
+			name:    "single backtick fence",
+			content: "before\n```\ncode\n```\nafter",
+			want:    [][2]int{{7, 20}},
+		},
+		{
+			name:    "single tilde fence",
+			content: "before\n~~~\ncode\n~~~\nafter",
+			want:    [][2]int{{7, 20}},
+		},
+		{
+			name:    "fence with info string",
+			content: "before\n```go\ncode\n```\nafter",
+			want:    [][2]int{{7, 22}},
+		},
+		{
+			name:    "multiple fences",
+			content: "a\n```\nx\n```\nb\n~~~\ny\n~~~\nc",
+			want:    [][2]int{{2, 12}, {14, 24}},
+		},
+		{
+			name:    "unclosed fence",
+			content: "before\n```\ncode\nmore code",
+			want:    [][2]int{{7, 25}},
+		},
+		{
+			name:    "longer closing fence",
+			content: "before\n```\ncode\n`````\nafter",
+			want:    [][2]int{{7, 22}},
+		},
+		{
+			name:    "shorter closing fence ignored",
+			content: "before\n`````\ncode\n```\nmore\n`````\nafter",
+			want:    [][2]int{{7, 33}},
+		},
+		{
+			name:    "indented fence up to 3 spaces",
+			content: "before\n   ```\ncode\n   ```\nafter",
+			want:    [][2]int{{7, 26}},
+		},
+		{
+			name:    "4 space indent is not a fence",
+			content: "before\n    ```\ncode\n    ```\nafter",
+			want:    nil,
+		},
+		{
+			name: "backtick in info string rejects open",
+			// The ```foo`bar line is not a valid opener (backtick in info).
+			// The standalone ``` becomes an opener with no close.
+			content: "before\n```foo`bar\ncode\n```\nafter",
+			want:    [][2]int{{23, 32}},
+		},
+		{
+			name:    "empty content",
+			content: "",
+			want:    nil,
+		},
+		{
+			name:    "fence only",
+			content: "```\ncode\n```",
+			want:    [][2]int{{0, 12}},
+		},
+		{
+			name:    "fence at end without trailing newline",
+			content: "```\ncode\n```",
+			want:    [][2]int{{0, 12}},
+		},
+		{
+			name:    "tilde fence does not close with backticks",
+			content: "~~~\ncode\n```\nmore\n~~~\nafter",
+			want:    [][2]int{{0, 22}},
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := Ranges(tt.content)
+			if len(got) != len(tt.want) {
+				t.Fatalf("Ranges() = %v, want %v", got, tt.want)
+			}
+			for i := range got {
+				if got[i] != tt.want[i] {
+					t.Errorf("Ranges()[%d] = %v, want %v", i, got[i], tt.want[i])
+				}
+			}
+		})
+	}
+}
+
+func TestReplaceOutside(t *testing.T) {
+	upper := func(s string) string {
+		b := []byte(s)
+		for i, c := range b {
+			if c >= 'a' && c <= 'z' {
+				b[i] = c - 32
+			}
+		}
+		return string(b)
+	}
+
+	tests := []struct {
+		name    string
+		content string
+		want    string
+	}{
+		{
+			name:    "no fences",
+			content: "hello world",
+			want:    "HELLO WORLD",
+		},
+		{
+			name:    "text around fence",
+			content: "before\n```\ncode\n```\nafter",
+			want:    "BEFORE\n```\ncode\n```\nAFTER",
+		},
+		{
+			name:    "multiple fences",
+			content: "aaa\n```\nxxx\n```\nbbb\n~~~\nyyy\n~~~\nccc",
+			want:    "AAA\n```\nxxx\n```\nBBB\n~~~\nyyy\n~~~\nCCC",
+		},
+		{
+			name:    "unclosed fence preserves code",
+			content: "before\n```\ncode",
+			want:    "BEFORE\n```\ncode",
+		},
+		{
+			name:    "only fenced content",
+			content: "```\ncode\n```",
+			want:    "```\ncode\n```",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := ReplaceOutside(tt.content, upper)
+			if got != tt.want {
+				t.Errorf("ReplaceOutside() =\n%s\nwant:\n%s", got, tt.want)
+			}
+		})
+	}
+}
+
+func TestStripFenced(t *testing.T) {
+	tests := []struct {
+		name    string
+		content string
+		want    string
+	}{
+		{
+			name:    "no fences",
+			content: "hello $1 world",
+			want:    "hello $1 world",
+		},
+		{
+			name:    "strips fenced code",
+			content: "before $1\n```\n$2 inside\n```\nafter $3",
+			want:    "before $1\nafter $3",
+		},
+		{
+			name:    "multiple fences",
+			content: "a\n```\nx\n```\nb\n~~~\ny\n~~~\nc",
+			want:    "a\nb\nc",
+		},
+		{
+			name:    "unclosed fence",
+			content: "before\n```\n$1 inside",
+			want:    "before\n",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := StripFenced(tt.content)
+			if got != tt.want {
+				t.Errorf("StripFenced() = %q, want %q", got, tt.want)
+			}
+		})
+	}
+}
+
+func TestInlineCodeRanges(t *testing.T) {
+	tests := []struct {
+		name string
+		s    string
+		want [][2]int
+	}{
+		{"no backticks", "hello world", nil},
+		{"single backtick span", "use `$1` here", [][2]int{{4, 8}}},
+		{"double backtick span", "use ``$1`` here", [][2]int{{4, 10}}},
+		{"multiple spans", "`$1` and `$2`", [][2]int{{0, 4}, {9, 13}}},
+		{"unmatched backtick", "use `$1 here", nil},
+		{"mismatched backtick counts", "use ``$1` here", nil},
+		{"empty inline content", "use `` `` here", [][2]int{{4, 9}}},
+		{"backticks inside double", "use ``foo`bar`` here", [][2]int{{4, 15}}},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := inlineCodeRanges(tt.s)
+			if len(got) != len(tt.want) {
+				t.Fatalf("inlineCodeRanges() = %v, want %v", got, tt.want)
+			}
+			for i := range got {
+				if got[i] != tt.want[i] {
+					t.Errorf("inlineCodeRanges()[%d] = %v, want %v", i, got[i], tt.want[i])
+				}
+			}
+		})
+	}
+}
+
+func TestReplaceOutside_InlineCode(t *testing.T) {
+	upper := func(s string) string {
+		b := []byte(s)
+		for i, c := range b {
+			if c >= 'a' && c <= 'z' {
+				b[i] = c - 32
+			}
+		}
+		return string(b)
+	}
+
+	tests := []struct {
+		name    string
+		content string
+		want    string
+	}{
+		{
+			name:    "inline code preserved",
+			content: "use `code` here",
+			want:    "USE `code` HERE",
+		},
+		{
+			name:    "double backtick inline code",
+			content: "use ``co`de`` here",
+			want:    "USE ``co`de`` HERE",
+		},
+		{
+			name:    "mixed fenced and inline",
+			content: "before `x` mid\n```\nfenced\n```\nafter `y` end",
+			want:    "BEFORE `x` MID\n```\nfenced\n```\nAFTER `y` END",
+		},
+		{
+			name:    "only inline code",
+			content: "`code`",
+			want:    "`code`",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := ReplaceOutside(tt.content, upper)
+			if got != tt.want {
+				t.Errorf("ReplaceOutside() =\n%s\nwant:\n%s", got, tt.want)
+			}
+		})
+	}
+}
+
+func TestStripCode(t *testing.T) {
+	tests := []struct {
+		name    string
+		content string
+		want    string
+	}{
+		{
+			name:    "no code",
+			content: "hello $1 world",
+			want:    "hello $1 world",
+		},
+		{
+			name:    "strips inline code",
+			content: "use `$1` and `$2` for positional args",
+			want:    "use  and  for positional args",
+		},
+		{
+			name:    "strips fenced and inline",
+			content: "before `$1`\n```\n$2 inside\n```\nafter",
+			want:    "before \nafter",
+		},
+		{
+			name:    "real world prompt template",
+			content: "Use $@ for all args.\n`$1`, `$2` for positional.\n```bash\necho $1\n```\n",
+			want:    "Use $@ for all args.\n,  for positional.\n",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := StripCode(tt.content)
+			if got != tt.want {
+				t.Errorf("StripCode() = %q, want %q", got, tt.want)
+			}
+		})
+	}
+}

internal/kitsetup/setup.go

@@ -65,6 +65,10 @@ type AgentSetupOptions struct {
 	// AuthHandler handles OAuth authorization for remote MCP servers.
 	// When set, remote transports are configured with OAuth support.
 	AuthHandler tools.MCPAuthHandler
+	// TokenStoreFactory, if non-nil, creates a custom token store for each
+	// remote MCP server's OAuth tokens. When nil, the default file-based
+	// token store is used.
+	TokenStoreFactory tools.TokenStoreFactory
 	// OnMCPServerLoaded, if non-nil, is called when each MCP server finishes
 	// loading (successfully or with error). Called from the background goroutine.
 	OnMCPServerLoaded func(serverName string, toolCount int, err error)
@@ -82,36 +86,55 @@ type AgentSetupResult struct {
 
 // BuildProviderConfig creates a *models.ProviderConfig from the current viper
 // state. All entry points (root, script, SDK) converge through this function.
+//
+// Generation parameter pointers (Temperature, TopP, etc.) are only set when
+// the user has explicitly configured them via CLI flag, environment variable,
+// or global config file. This allows per-model defaults from modelSettings
+// and customModels to fill in unset parameters downstream.
 func BuildProviderConfig() (*models.ProviderConfig, string, error) {
 	systemPrompt, err := config.LoadSystemPrompt(viper.GetString("system-prompt"))
 	if err != nil {
 		return nil, "", fmt.Errorf("failed to load system prompt: %w", err)
 	}
 
-	temperature := float32(viper.GetFloat64("temperature"))
-	topP := float32(viper.GetFloat64("top-p"))
-	topK := int32(viper.GetInt("top-k"))
-	frequencyPenalty := float32(viper.GetFloat64("frequency-penalty"))
-	presencePenalty := float32(viper.GetFloat64("presence-penalty"))
 	numGPU := int32(viper.GetInt("num-gpu-layers"))
 	mainGPU := int32(viper.GetInt("main-gpu"))
 
 	cfg := &models.ProviderConfig{
-		ModelString:      viper.GetString("model"),
-		SystemPrompt:     systemPrompt,
-		ProviderAPIKey:   viper.GetString("provider-api-key"),
-		ProviderURL:      viper.GetString("provider-url"),
-		MaxTokens:        viper.GetInt("max-tokens"),
-		Temperature:      &temperature,
-		TopP:             &topP,
-		TopK:             &topK,
-		FrequencyPenalty: &frequencyPenalty,
-		PresencePenalty:  &presencePenalty,
-		StopSequences:    viper.GetStringSlice("stop-sequences"),
-		NumGPU:           &numGPU,
-		MainGPU:          &mainGPU,
-		TLSSkipVerify:    viper.GetBool("tls-skip-verify"),
-		ThinkingLevel:    models.ParseThinkingLevel(viper.GetString("thinking-level")),
+		ModelString:    viper.GetString("model"),
+		SystemPrompt:   systemPrompt,
+		ProviderAPIKey: viper.GetString("provider-api-key"),
+		ProviderURL:    viper.GetString("provider-url"),
+		MaxTokens:      viper.GetInt("max-tokens"),
+		StopSequences:  viper.GetStringSlice("stop-sequences"),
+		NumGPU:         &numGPU,
+		MainGPU:        &mainGPU,
+		TLSSkipVerify:  viper.GetBool("tls-skip-verify"),
+		ThinkingLevel:  models.ParseThinkingLevel(viper.GetString("thinking-level")),
+	}
+
+	// Only set generation parameter pointers when the user has explicitly
+	// provided a value. This leaves nil pointers for unset params, allowing
+	// per-model defaults (modelSettings / customModels params) to apply.
+	if viper.IsSet("temperature") {
+		v := float32(viper.GetFloat64("temperature"))
+		cfg.Temperature = &v
+	}
+	if viper.IsSet("top-p") {
+		v := float32(viper.GetFloat64("top-p"))
+		cfg.TopP = &v
+	}
+	if viper.IsSet("top-k") {
+		v := int32(viper.GetInt("top-k"))
+		cfg.TopK = &v
+	}
+	if viper.IsSet("frequency-penalty") {
+		v := float32(viper.GetFloat64("frequency-penalty"))
+		cfg.FrequencyPenalty = &v
+	}
+	if viper.IsSet("presence-penalty") {
+		v := float32(viper.GetFloat64("presence-penalty"))
+		cfg.PresencePenalty = &v
 	}
 
 	return cfg, systemPrompt, nil
@@ -200,6 +223,7 @@ func SetupAgent(ctx context.Context, opts AgentSetupOptions) (*AgentSetupResult,
 		SpinnerFunc:       opts.SpinnerFunc,
 		DebugLogger:       debugLogger,
 		AuthHandler:       opts.AuthHandler,
+		TokenStoreFactory: opts.TokenStoreFactory,
 		CoreTools:         opts.CoreTools,
 		DisableCoreTools:  opts.DisableCoreTools,
 		ToolWrapper:       toolWrapper,
@@ -243,7 +267,7 @@ func loadExtensions() (*extensions.Runner, extensionCreationOpts, error) {
 		return extensions.WrapToolsWithExtensions(tools, runner)
 	}
 
-	extTools := extensions.ExtensionToolsAsFantasy(runner.RegisteredTools(), runner)
+	extTools := extensions.ExtensionToolsAsLLMTools(runner.RegisteredTools(), runner)
 
 	return runner, extensionCreationOpts{
 		toolWrapper: wrapper,

internal/message/content.go

@@ -325,12 +325,6 @@ func UnmarshalParts(data []byte) ([]ContentPart, error) {
 // mixed TextPart and ToolCallPart content. Tool-role messages produce
 // ToolResultPart entries.
 func (m *Message) ToLLMMessages() []fantasy.Message {
-	return m.ToFantasyMessages()
-}
-
-// Deprecated: Use ToLLMMessages instead.
-// ToFantasyMessages converts a Message to one or more LLM message values.
-func (m *Message) ToFantasyMessages() []fantasy.Message {
 	switch m.Role {
 	case RoleAssistant:
 		var parts []fantasy.MessagePart
@@ -431,13 +425,6 @@ func (m *Message) ToFantasyMessages() []fantasy.Message {
 // FromLLMMessage converts an LLM message into our Message type,
 // extracting all content parts into the appropriate block types.
 func FromLLMMessage(msg fantasy.Message) Message {
-	return FromFantasyMessage(msg)
-}
-
-// Deprecated: Use FromLLMMessage instead.
-// FromFantasyMessage converts an LLM message into our Message type,
-// extracting all content parts into the appropriate block types.
-func FromFantasyMessage(msg fantasy.Message) Message {
 	m := Message{
 		Role:      MessageRole(msg.Role),
 		Parts:     make([]ContentPart, 0),

internal/models/custom.go

@@ -2,6 +2,8 @@ package models
 
 import (
 	"log"
+	"os"
+	"strings"
 
 	"github.com/spf13/viper"
 )
@@ -31,7 +33,7 @@ func loadCustomModelsFromConfig() map[string]ModelInfo {
 
 // modelConfigToModelInfo converts a CustomModelConfig to a ModelInfo.
 func modelConfigToModelInfo(modelID string, cfg CustomModelConfig) ModelInfo {
-	return ModelInfo{
+	info := ModelInfo{
 		ID:          modelID,
 		Name:        cfg.Name,
 		Attachment:  cfg.Attachment,
@@ -48,21 +50,242 @@ func modelConfigToModelInfo(modelID string, cfg CustomModelConfig) ModelInfo {
 			Output:  cfg.Limit.Output,
 		},
 	}
+
+	// Convert custom model generation params if any are set.
+	if p := convertGenerationParams(cfg.Params); p != nil {
+		info.Params = p
+	}
+
+	return info
+}
+
+// LoadModelSettingsFromConfig loads per-model generation parameter overrides
+// from the config file. Keys are "provider/model" strings. Returns nil if
+// no model settings are configured.
+func LoadModelSettingsFromConfig() map[string]*GenerationParams {
+	if !viper.IsSet("modelSettings") {
+		return nil
+	}
+
+	var settings map[string]GenerationParamsConfig
+	if err := viper.UnmarshalKey("modelSettings", &settings); err != nil {
+		log.Printf("Warning: Failed to parse modelSettings: %v", err)
+		return nil
+	}
+
+	result := make(map[string]*GenerationParams, len(settings))
+	for modelKey, cfg := range settings {
+		if p := convertGenerationParams(cfg); p != nil {
+			result[modelKey] = p
+		}
+	}
+
+	return result
+}
+
+// convertGenerationParams converts a GenerationParamsConfig to a GenerationParams.
+// Returns nil if no parameters are set.
+func convertGenerationParams(cfg GenerationParamsConfig) *GenerationParams {
+	p := &GenerationParams{}
+	any := false
+
+	if cfg.MaxTokens != nil {
+		p.MaxTokens = cfg.MaxTokens
+		any = true
+	}
+	if cfg.Temperature != nil {
+		p.Temperature = cfg.Temperature
+		any = true
+	}
+	if cfg.TopP != nil {
+		p.TopP = cfg.TopP
+		any = true
+	}
+	if cfg.TopK != nil {
+		p.TopK = cfg.TopK
+		any = true
+	}
+	if cfg.FrequencyPenalty != nil {
+		p.FrequencyPenalty = cfg.FrequencyPenalty
+		any = true
+	}
+	if cfg.PresencePenalty != nil {
+		p.PresencePenalty = cfg.PresencePenalty
+		any = true
+	}
+	if len(cfg.StopSequences) > 0 {
+		p.StopSequences = cfg.StopSequences
+		any = true
+	}
+	if cfg.ThinkingLevel != "" {
+		p.ThinkingLevel = ParseThinkingLevel(cfg.ThinkingLevel)
+		any = true
+	}
+	if cfg.SystemPrompt != "" {
+		p.SystemPrompt = cfg.SystemPrompt
+		any = true
+	}
+
+	if !any {
+		return nil
+	}
+	return p
+}
+
+// ApplyModelSettings merges per-model generation parameter defaults from the
+// registry into a ProviderConfig. Model-level params are only applied for
+// fields where the user has not explicitly set a value (i.e., the
+// corresponding viper key is not set via CLI flag or global config).
+//
+// The lookup order is:
+//  1. modelSettings["provider/model"] from config (highest model-level priority)
+//  2. ModelInfo.Params from custom model definitions
+//
+// Both are overridden by explicit CLI flags / global config values.
+func ApplyModelSettings(config *ProviderConfig, modelInfo *ModelInfo) {
+	provider, modelName, err := ParseModelString(config.ModelString)
+	if err != nil {
+		return
+	}
+
+	// Collect model-level params: modelSettings override > custom model params.
+	// modelSettings takes priority because it's the more specific/intentional config.
+	var params *GenerationParams
+
+	// First check modelSettings from config.
+	if settings := LoadModelSettingsFromConfig(); settings != nil {
+		modelKey := provider + "/" + modelName
+		if p, ok := settings[modelKey]; ok {
+			params = p
+		}
+	}
+
+	// Fall back to ModelInfo.Params (from custom model definitions).
+	if params == nil && modelInfo != nil && modelInfo.Params != nil {
+		params = modelInfo.Params
+	}
+
+	if params == nil {
+		return
+	}
+
+	// Apply each parameter only when the user hasn't explicitly set it.
+	// We check viper.IsSet() which returns true only when the key was
+	// set via CLI flag, environment variable, or config file global section.
+
+	if params.MaxTokens != nil && !isExplicitlySet("max-tokens") {
+		config.MaxTokens = *params.MaxTokens
+	}
+	if params.Temperature != nil && !isExplicitlySet("temperature") {
+		config.Temperature = params.Temperature
+	}
+	if params.TopP != nil && !isExplicitlySet("top-p") {
+		config.TopP = params.TopP
+	}
+	if params.TopK != nil && !isExplicitlySet("top-k") {
+		config.TopK = params.TopK
+	}
+	if params.FrequencyPenalty != nil && !isExplicitlySet("frequency-penalty") {
+		config.FrequencyPenalty = params.FrequencyPenalty
+	}
+	if params.PresencePenalty != nil && !isExplicitlySet("presence-penalty") {
+		config.PresencePenalty = params.PresencePenalty
+	}
+	if len(params.StopSequences) > 0 && !isExplicitlySet("stop-sequences") {
+		config.StopSequences = params.StopSequences
+	}
+	if params.ThinkingLevel != "" && !isExplicitlySet("thinking-level") {
+		config.ThinkingLevel = params.ThinkingLevel
+	}
+	if params.SystemPrompt != "" && config.SystemPrompt == "" {
+		// Resolve file paths: if the value points to an existing file, read it.
+		// We check config.SystemPrompt == "" rather than isExplicitlySet because
+		// viper.BindPFlag causes IsSet to return true even for unset flags.
+		config.SystemPrompt = LoadSystemPromptValue(params.SystemPrompt)
+	}
+}
+
+// LoadSystemPromptValue resolves a system prompt value that may be either
+// inline text or a file path. If the value is a path to an existing file,
+// its contents are read and returned. Otherwise the string is returned as-is.
+// This mirrors config.LoadSystemPrompt but lives in the models package to
+// avoid circular dependencies.
+func LoadSystemPromptValue(input string) string {
+	if input == "" {
+		return ""
+	}
+	if info, err := os.Stat(input); err == nil && !info.IsDir() {
+		content, err := os.ReadFile(input)
+		if err != nil {
+			log.Printf("Warning: failed to read system prompt file %q: %v", input, err)
+			return input
+		}
+		return strings.TrimSpace(string(content))
+	}
+	return input
+}
+
+// isExplicitlySet returns true when the user has explicitly set a config key
+// via CLI flag, environment variable, or the global section of the config file.
+// Model-level defaults should not override explicitly set values.
+func isExplicitlySet(key string) bool {
+	// viper.IsSet returns true if the key has been set in any of the
+	// data stores (flag, env, config file, default). We need to check
+	// whether the value was set at the global config level (not just
+	// as a default). For generation params, the global config keys use
+	// hyphenated names (e.g. "max-tokens", "top-p").
+	//
+	// Since viper merges all sources, IsSet returns true even for config
+	// file values. This means global config file values (e.g.
+	// temperature: 0.7 at the top level) will correctly take precedence
+	// over model-level defaults, which is the desired behavior.
+	return viper.IsSet(key)
+}
+
+// GenerationParams holds per-model generation parameter defaults.
+// These are stored on ModelInfo and applied during provider creation.
+// Nil pointer fields mean "no model-level default" — the global config
+// or CLI flag value (if any) will be used instead.
+type GenerationParams struct {
+	MaxTokens        *int
+	Temperature      *float32
+	TopP             *float32
+	TopK             *int32
+	FrequencyPenalty *float32
+	PresencePenalty  *float32
+	StopSequences    []string
+	ThinkingLevel    ThinkingLevel
+	SystemPrompt     string // Per-model system prompt (inline text or file path)
 }
 
 // CustomModelConfig defines a custom model configuration loaded from the config file.
 // This is a duplicate here to avoid circular dependencies with internal/config.
 type CustomModelConfig struct {
-	Name        string      `json:"name" yaml:"name"`
-	BaseURL     string      `json:"baseUrl,omitempty" yaml:"baseUrl,omitempty"`
-	APIKey      string      `json:"apiKey,omitempty" yaml:"apiKey,omitempty"`
-	Family      string      `json:"family,omitempty" yaml:"family,omitempty"`
-	Attachment  bool        `json:"attachment,omitempty" yaml:"attachment,omitempty"`
-	Reasoning   bool        `json:"reasoning,omitempty" yaml:"reasoning,omitempty"`
-	Temperature bool        `json:"temperature,omitempty" yaml:"temperature,omitempty"`
-	Knowledge   string      `json:"knowledge,omitempty" yaml:"knowledge,omitempty"`
-	Cost        CostConfig  `json:"cost" yaml:"cost"`
-	Limit       LimitConfig `json:"limit" yaml:"limit"`
+	Name        string                 `json:"name" yaml:"name"`
+	BaseURL     string                 `json:"baseUrl,omitempty" yaml:"baseUrl,omitempty"`
+	APIKey      string                 `json:"apiKey,omitempty" yaml:"apiKey,omitempty"`
+	Family      string                 `json:"family,omitempty" yaml:"family,omitempty"`
+	Attachment  bool                   `json:"attachment,omitempty" yaml:"attachment,omitempty"`
+	Reasoning   bool                   `json:"reasoning,omitempty" yaml:"reasoning,omitempty"`
+	Temperature bool                   `json:"temperature,omitempty" yaml:"temperature,omitempty"`
+	Knowledge   string                 `json:"knowledge,omitempty" yaml:"knowledge,omitempty"`
+	Cost        CostConfig             `json:"cost" yaml:"cost"`
+	Limit       LimitConfig            `json:"limit" yaml:"limit"`
+	Params      GenerationParamsConfig `json:"params,omitzero" yaml:"params,omitempty"`
+}
+
+// GenerationParamsConfig is the JSON/YAML-serializable form of generation
+// parameter defaults. Used in both customModels[].params and modelSettings[].
+type GenerationParamsConfig struct {
+	MaxTokens        *int     `json:"maxTokens,omitempty" yaml:"maxTokens,omitempty"`
+	Temperature      *float32 `json:"temperature,omitempty" yaml:"temperature,omitempty"`
+	TopP             *float32 `json:"topP,omitempty" yaml:"topP,omitempty"`
+	TopK             *int32   `json:"topK,omitempty" yaml:"topK,omitempty"`
+	FrequencyPenalty *float32 `json:"frequencyPenalty,omitempty" yaml:"frequencyPenalty,omitempty"`
+	PresencePenalty  *float32 `json:"presencePenalty,omitempty" yaml:"presencePenalty,omitempty"`
+	StopSequences    []string `json:"stopSequences,omitempty" yaml:"stopSequences,omitempty"`
+	ThinkingLevel    string   `json:"thinkingLevel,omitempty" yaml:"thinkingLevel,omitempty"`
+	SystemPrompt     string   `json:"systemPrompt,omitempty" yaml:"systemPrompt,omitempty"`
 }
 
 // CostConfig defines the pricing for a custom model.

internal/models/custom_test.go

@@ -0,0 +1,422 @@
+package models
+
+import (
+	"os"
+	"testing"
+
+	"github.com/spf13/viper"
+)
+
+func TestConvertGenerationParams(t *testing.T) {
+	t.Run("empty config returns nil", func(t *testing.T) {
+		cfg := GenerationParamsConfig{}
+		p := convertGenerationParams(cfg)
+		if p != nil {
+			t.Errorf("expected nil, got %+v", p)
+		}
+	})
+
+	t.Run("temperature only", func(t *testing.T) {
+		temp := float32(0.7)
+		cfg := GenerationParamsConfig{Temperature: &temp}
+		p := convertGenerationParams(cfg)
+		if p == nil {
+			t.Fatal("expected non-nil")
+		}
+		if p.Temperature == nil || *p.Temperature != 0.7 {
+			t.Errorf("expected temperature 0.7, got %v", p.Temperature)
+		}
+		if p.TopP != nil {
+			t.Errorf("expected nil TopP, got %v", p.TopP)
+		}
+	})
+
+	t.Run("all params set", func(t *testing.T) {
+		maxTokens := 8192
+		temp := float32(0.5)
+		topP := float32(0.9)
+		topK := int32(50)
+		freqPenalty := float32(0.1)
+		presPenalty := float32(0.2)
+		cfg := GenerationParamsConfig{
+			MaxTokens:        &maxTokens,
+			Temperature:      &temp,
+			TopP:             &topP,
+			TopK:             &topK,
+			FrequencyPenalty: &freqPenalty,
+			PresencePenalty:  &presPenalty,
+			StopSequences:    []string{"STOP"},
+			ThinkingLevel:    "high",
+		}
+		p := convertGenerationParams(cfg)
+		if p == nil {
+			t.Fatal("expected non-nil")
+		}
+		if p.MaxTokens == nil || *p.MaxTokens != 8192 {
+			t.Errorf("expected maxTokens 8192, got %v", p.MaxTokens)
+		}
+		if p.Temperature == nil || *p.Temperature != 0.5 {
+			t.Errorf("expected temperature 0.5, got %v", p.Temperature)
+		}
+		if p.TopP == nil || *p.TopP != 0.9 {
+			t.Errorf("expected topP 0.9, got %v", p.TopP)
+		}
+		if p.TopK == nil || *p.TopK != 50 {
+			t.Errorf("expected topK 50, got %v", p.TopK)
+		}
+		if p.FrequencyPenalty == nil || *p.FrequencyPenalty != 0.1 {
+			t.Errorf("expected frequencyPenalty 0.1, got %v", p.FrequencyPenalty)
+		}
+		if p.PresencePenalty == nil || *p.PresencePenalty != 0.2 {
+			t.Errorf("expected presencePenalty 0.2, got %v", p.PresencePenalty)
+		}
+		if len(p.StopSequences) != 1 || p.StopSequences[0] != "STOP" {
+			t.Errorf("expected stop sequences [STOP], got %v", p.StopSequences)
+		}
+		if p.ThinkingLevel != ThinkingHigh {
+			t.Errorf("expected thinking level high, got %v", p.ThinkingLevel)
+		}
+	})
+
+	t.Run("thinking level parsing", func(t *testing.T) {
+		cfg := GenerationParamsConfig{ThinkingLevel: "medium"}
+		p := convertGenerationParams(cfg)
+		if p == nil {
+			t.Fatal("expected non-nil")
+		}
+		if p.ThinkingLevel != ThinkingMedium {
+			t.Errorf("expected thinking level medium, got %v", p.ThinkingLevel)
+		}
+	})
+	t.Run("system prompt only", func(t *testing.T) {
+		cfg := GenerationParamsConfig{SystemPrompt: "You are helpful."}
+		p := convertGenerationParams(cfg)
+		if p == nil {
+			t.Fatal("expected non-nil")
+		}
+		if p.SystemPrompt != "You are helpful." {
+			t.Errorf("expected system prompt, got %q", p.SystemPrompt)
+		}
+	})
+}
+
+func TestModelConfigToModelInfoWithParams(t *testing.T) {
+	temp := float32(0.8)
+	topP := float32(0.95)
+	cfg := CustomModelConfig{
+		Name:        "Test Model",
+		BaseURL:     "http://localhost:8080/v1",
+		Temperature: true,
+		Params: GenerationParamsConfig{
+			Temperature: &temp,
+			TopP:        &topP,
+		},
+	}
+
+	info := modelConfigToModelInfo("test-model", cfg)
+
+	if info.Params == nil {
+		t.Fatal("expected non-nil Params")
+	}
+	if info.Params.Temperature == nil || *info.Params.Temperature != 0.8 {
+		t.Errorf("expected temperature 0.8, got %v", info.Params.Temperature)
+	}
+	if info.Params.TopP == nil || *info.Params.TopP != 0.95 {
+		t.Errorf("expected topP 0.95, got %v", info.Params.TopP)
+	}
+}
+
+func TestModelConfigToModelInfoWithoutParams(t *testing.T) {
+	cfg := CustomModelConfig{
+		Name:    "Test Model",
+		BaseURL: "http://localhost:8080/v1",
+	}
+
+	info := modelConfigToModelInfo("test-model", cfg)
+
+	if info.Params != nil {
+		t.Errorf("expected nil Params, got %+v", info.Params)
+	}
+}
+
+func TestApplyModelSettings(t *testing.T) {
+	// Save and restore viper state.
+	originalViper := viper.AllSettings()
+	defer func() {
+		viper.Reset()
+		for k, v := range originalViper {
+			viper.Set(k, v)
+		}
+	}()
+
+	t.Run("applies model params when not explicitly set", func(t *testing.T) {
+		viper.Reset()
+
+		temp := float32(0.8)
+		topK := int32(50)
+		maxTokens := 4096
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				Temperature: &temp,
+				TopK:        &topK,
+				MaxTokens:   &maxTokens,
+			},
+		}
+
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		if config.Temperature == nil || *config.Temperature != 0.8 {
+			t.Errorf("expected temperature 0.8, got %v", config.Temperature)
+		}
+		if config.TopK == nil || *config.TopK != 50 {
+			t.Errorf("expected topK 50, got %v", config.TopK)
+		}
+		if config.MaxTokens != 4096 {
+			t.Errorf("expected maxTokens 4096, got %d", config.MaxTokens)
+		}
+	})
+
+	t.Run("explicit viper values take precedence", func(t *testing.T) {
+		viper.Reset()
+		viper.Set("temperature", 0.3)
+
+		temp := float32(0.8)
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				Temperature: &temp,
+			},
+		}
+
+		explicitTemp := float32(0.3)
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+			Temperature: &explicitTemp,
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		// Temperature should NOT be overridden because it's explicitly set in viper
+		if config.Temperature == nil || *config.Temperature != 0.3 {
+			t.Errorf("expected temperature 0.3 (explicit), got %v", config.Temperature)
+		}
+	})
+
+	t.Run("nil model info is safe", func(t *testing.T) {
+		viper.Reset()
+
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		// Should not panic
+		ApplyModelSettings(config, nil)
+
+		if config.Temperature != nil {
+			t.Errorf("expected nil temperature, got %v", config.Temperature)
+		}
+	})
+
+	t.Run("model info without params is safe", func(t *testing.T) {
+		viper.Reset()
+
+		modelInfo := &ModelInfo{ID: "test-model"}
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		if config.Temperature != nil {
+			t.Errorf("expected nil temperature, got %v", config.Temperature)
+		}
+	})
+
+	t.Run("modelSettings from viper takes priority over ModelInfo.Params", func(t *testing.T) {
+		viper.Reset()
+
+		// Set up modelSettings in viper (simulating config file)
+		viper.Set("modelSettings", map[string]any{
+			"custom/test-model": map[string]any{
+				"temperature": 0.5,
+				"topK":        30,
+			},
+		})
+
+		// ModelInfo has different params
+		temp := float32(0.8)
+		topK := int32(50)
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				Temperature: &temp,
+				TopK:        &topK,
+			},
+		}
+
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		// modelSettings should win over ModelInfo.Params
+		if config.Temperature == nil || *config.Temperature != 0.5 {
+			t.Errorf("expected temperature 0.5 (from modelSettings), got %v", config.Temperature)
+		}
+		if config.TopK == nil || *config.TopK != 30 {
+			t.Errorf("expected topK 30 (from modelSettings), got %v", config.TopK)
+		}
+	})
+
+	t.Run("stop sequences applied from model params", func(t *testing.T) {
+		viper.Reset()
+
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				StopSequences: []string{"STOP", "END"},
+			},
+		}
+
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		if len(config.StopSequences) != 2 || config.StopSequences[0] != "STOP" {
+			t.Errorf("expected stop sequences [STOP END], got %v", config.StopSequences)
+		}
+	})
+
+	t.Run("thinking level applied from model params", func(t *testing.T) {
+		viper.Reset()
+
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				ThinkingLevel: ThinkingHigh,
+			},
+		}
+
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		if config.ThinkingLevel != ThinkingHigh {
+			t.Errorf("expected thinking level high, got %v", config.ThinkingLevel)
+		}
+	})
+
+	t.Run("system prompt applied from model params", func(t *testing.T) {
+		viper.Reset()
+
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				SystemPrompt: "You are a coding assistant.",
+			},
+		}
+
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		if config.SystemPrompt != "You are a coding assistant." {
+			t.Errorf("expected system prompt to be set, got %q", config.SystemPrompt)
+		}
+	})
+
+	t.Run("explicit system prompt takes precedence", func(t *testing.T) {
+		viper.Reset()
+
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				SystemPrompt: "Model-specific prompt",
+			},
+		}
+
+		config := &ProviderConfig{
+			ModelString:  "custom/test-model",
+			SystemPrompt: "Global prompt",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		// Global system prompt should NOT be overridden because config
+		// already has a non-empty SystemPrompt.
+		if config.SystemPrompt != "Global prompt" {
+			t.Errorf("expected global prompt preserved, got %q", config.SystemPrompt)
+		}
+	})
+
+	t.Run("system prompt from file path", func(t *testing.T) {
+		viper.Reset()
+
+		// Create a temp file with a system prompt
+		tmpFile, err := os.CreateTemp("", "kit-test-prompt-*.txt")
+		if err != nil {
+			t.Fatal(err)
+		}
+		defer func() { _ = os.Remove(tmpFile.Name()) }()
+		if _, err := tmpFile.WriteString("  Prompt from file  "); err != nil {
+			t.Fatal(err)
+		}
+		_ = tmpFile.Close()
+
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				SystemPrompt: tmpFile.Name(),
+			},
+		}
+
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		if config.SystemPrompt != "Prompt from file" {
+			t.Errorf("expected trimmed file content, got %q", config.SystemPrompt)
+		}
+	})
+
+	t.Run("modelSettings system prompt overrides custom model params", func(t *testing.T) {
+		viper.Reset()
+
+		viper.Set("modelSettings", map[string]any{
+			"custom/test-model": map[string]any{
+				"systemPrompt": "From modelSettings",
+			},
+		})
+
+		modelInfo := &ModelInfo{
+			ID: "test-model",
+			Params: &GenerationParams{
+				SystemPrompt: "From custom model",
+			},
+		}
+
+		config := &ProviderConfig{
+			ModelString: "custom/test-model",
+		}
+
+		ApplyModelSettings(config, modelInfo)
+
+		if config.SystemPrompt != "From modelSettings" {
+			t.Errorf("expected modelSettings prompt, got %q", config.SystemPrompt)
+		}
+	})
+}

internal/models/providers.go

@@ -25,7 +25,6 @@ import (
 	openaisdk "github.com/charmbracelet/openai-go"
 
 	"github.com/mark3labs/kit/internal/auth"
-	"github.com/mark3labs/kit/internal/ui/progress"
 )
 
 const (
@@ -86,6 +85,7 @@ type ThinkingLevel string
 
 const (
 	ThinkingOff     ThinkingLevel = "off"
+	ThinkingNone    ThinkingLevel = "none"
 	ThinkingMinimal ThinkingLevel = "minimal"
 	ThinkingLow     ThinkingLevel = "low"
 	ThinkingMedium  ThinkingLevel = "medium"
@@ -94,12 +94,14 @@ const (
 
 // ThinkingLevels returns the ordered list of available thinking levels for cycling.
 func ThinkingLevels() []ThinkingLevel {
-	return []ThinkingLevel{ThinkingOff, ThinkingMinimal, ThinkingLow, ThinkingMedium, ThinkingHigh}
+	return []ThinkingLevel{ThinkingOff, ThinkingNone, ThinkingMinimal, ThinkingLow, ThinkingMedium, ThinkingHigh}
 }
 
-// thinkingBudgetTokens returns the token budget for a thinking level, or 0 for "off".
+// thinkingBudgetTokens returns the token budget for a thinking level, or 0 for "off" or "none".
 func thinkingBudgetTokens(level ThinkingLevel) int64 {
 	switch level {
+	case ThinkingNone:
+		return 1024
 	case ThinkingMinimal:
 		return 1024
 	case ThinkingLow:
@@ -118,6 +120,8 @@ func ThinkingLevelDescription(level ThinkingLevel) string {
 	switch level {
 	case ThinkingOff:
 		return "No reasoning"
+	case ThinkingNone:
+		return "Minimal reasoning (OpenAI 'none')"
 	case ThinkingMinimal:
 		return "Very brief reasoning (~1k tokens)"
 	case ThinkingLow:
@@ -134,7 +138,7 @@ func ThinkingLevelDescription(level ThinkingLevel) string {
 // ParseThinkingLevel converts a string to a ThinkingLevel, defaulting to ThinkingOff.
 func ParseThinkingLevel(s string) ThinkingLevel {
 	switch ThinkingLevel(s) {
-	case ThinkingMinimal, ThinkingLow, ThinkingMedium, ThinkingHigh:
+	case ThinkingNone, ThinkingMinimal, ThinkingLow, ThinkingMedium, ThinkingHigh:
 		return ThinkingLevel(s)
 	default:
 		return ThinkingOff
@@ -159,6 +163,12 @@ type ProviderConfig struct {
 	TLSSkipVerify    bool
 	ThinkingLevel    ThinkingLevel
 	DisableCaching   bool // Opt-out: set to true to disable automatic prompt caching
+
+	// ProgressReaderFunc, when set, wraps an io.Reader with progress display
+	// for long operations like Ollama model pulls. The returned io.ReadCloser
+	// must be closed when done. When nil, the raw reader is consumed directly
+	// with no progress UI.
+	ProgressReaderFunc func(io.Reader) io.ReadCloser
 }
 
 // ProviderResult contains the result of provider creation.
@@ -241,6 +251,16 @@ func CreateProvider(ctx context.Context, config *ProviderConfig) (*ProviderResul
 		validateModelConfig(config, modelInfo)
 	}
 
+	// Apply per-model generation parameter defaults. Model-level params are
+	// only applied for fields where the user hasn't explicitly set a value
+	// via CLI flag or global config.
+	ApplyModelSettings(config, modelInfo)
+
+	// Auto-raise MaxTokens toward the model's known output ceiling when the
+	// user hasn't explicitly set --max-tokens and no per-model override
+	// applied. Runs after ApplyModelSettings so explicit modelSettings win.
+	rightSizeMaxTokens(config, modelInfo)
+
 	// Create the base provider
 	var result *ProviderResult
 	var createErr error
@@ -285,9 +305,18 @@ func CreateProvider(ctx context.Context, config *ProviderConfig) (*ProviderResul
 			// Only add cache options for providers that don't already have
 			// options set, to avoid type conflicts (e.g., Anthropic has
 			// different types for regular options vs cache control options).
-			for k, v := range cacheOpts {
-				if _, exists := result.ProviderOptions[k]; !exists {
-					result.ProviderOptions[k] = v
+			//
+			// For OpenAI Responses API models, we skip merging entirely because
+			// ResponsesProviderOptions and ProviderOptions are incompatible types.
+			skipMerge := false
+			if provider == "openai" && openai.IsResponsesModel(modelName) {
+				skipMerge = true
+			}
+			if !skipMerge {
+				for k, v := range cacheOpts {
+					if _, exists := result.ProviderOptions[k]; !exists {
+						result.ProviderOptions[k] = v
+					}
 				}
 			}
 		}
@@ -479,6 +508,37 @@ func validateModelConfig(config *ProviderConfig, modelInfo *ModelInfo) {
 	}
 }
 
+// defaultRightSizeCap bounds auto-raised MaxTokens so that we don't silently
+// allocate enormous output budgets for models with very high ceilings (e.g.
+// Devstral at 262144, Mistral at 128000). Users who genuinely want more can
+// pass --max-tokens explicitly or set modelSettings[...].maxTokens in config.
+const defaultRightSizeCap = 32768
+
+// rightSizeMaxTokens raises config.MaxTokens toward the model's known output
+// ceiling when:
+//   - the user has not explicitly set --max-tokens (or the KIT_MAX_TOKENS env
+//     var, or the top-level max-tokens key in config.yaml), AND
+//   - no per-model override already bumped MaxTokens (ApplyModelSettings runs
+//     before this function), AND
+//   - modelInfo.Limit.Output is known and larger than the current MaxTokens.
+//
+// The raised value is capped at defaultRightSizeCap to keep accidental
+// allocations reasonable on very-large-output models. This prevents the
+// common "ghost" where the agent's reply is silently truncated at the 8192
+// default even though the selected model supports 64k or 262k output tokens.
+func rightSizeMaxTokens(config *ProviderConfig, modelInfo *ModelInfo) {
+	if modelInfo == nil || modelInfo.Limit.Output <= 0 {
+		return
+	}
+	if isExplicitlySet("max-tokens") {
+		return
+	}
+	target := min(modelInfo.Limit.Output, defaultRightSizeCap)
+	if config.MaxTokens < target {
+		config.MaxTokens = target
+	}
+}
+
 // clearConflictingAnthropicSamplingParams ensures that temperature and top_p are
 // not both sent to the Anthropic API, which rejects requests containing both.
 // When both are set (typically from defaults), top_p is cleared so that
@@ -525,6 +585,8 @@ func buildOpenAIProviderOptions(config *ProviderConfig, modelName string) fantas
 // Returns nil for ThinkingOff (use the model's default).
 func thinkingLevelToReasoningEffort(level ThinkingLevel) *openai.ReasoningEffort {
 	switch level {
+	case ThinkingNone:
+		return new(openai.ReasoningEffortNone)
 	case ThinkingMinimal:
 		return new(openai.ReasoningEffortMinimal)
 	case ThinkingLow:
@@ -538,6 +600,56 @@ func thinkingLevelToReasoningEffort(level ThinkingLevel) *openai.ReasoningEffort
 	}
 }
 
+// IsValidThinkingLevelForModel checks if a thinking level is valid for the given
+// model. Some OpenAI models like gpt-5.4 don't support "minimal" and require
+// "none" instead.
+func IsValidThinkingLevelForModel(level ThinkingLevel, modelName string) bool {
+	if level == ThinkingOff {
+		return true
+	}
+
+	// Check if this is an OpenAI model that doesn't support "minimal"
+	// gpt-5.4 and newer gpt-5.x models use "none" instead of "minimal"
+	if level == ThinkingMinimal {
+		if strings.Contains(modelName, "gpt-5.4") ||
+			strings.Contains(modelName, "gpt-5-pro") ||
+			strings.Contains(modelName, "gpt-5-chat") {
+			return false
+		}
+	}
+
+	// Check if this is an OpenAI model that doesn't support "none"
+	// Older gpt-5 models only support "minimal", not "none"
+	if level == ThinkingNone {
+		if strings.Contains(modelName, "gpt-5") &&
+			!strings.Contains(modelName, "gpt-5.4") &&
+			!strings.Contains(modelName, "gpt-5-pro") &&
+			!strings.Contains(modelName, "gpt-5-chat") {
+			// Older gpt-5 models might not support "none"
+			// They only added "none" support in newer versions
+			return false
+		}
+	}
+
+	// All other levels are generally valid for reasoning models
+	return true
+}
+
+// SuggestThinkingLevelFallback returns a recommended fallback level when the
+// requested level is not valid for the model. Returns ThinkingOff if no
+// suitable fallback exists.
+func SuggestThinkingLevelFallback(level ThinkingLevel, modelName string) ThinkingLevel {
+	if level == ThinkingMinimal && !IsValidThinkingLevelForModel(level, modelName) {
+		// For models that don't support "minimal", suggest "none" (~same token budget)
+		return ThinkingNone
+	}
+	if level == ThinkingNone && !IsValidThinkingLevelForModel(level, modelName) {
+		// For models that don't support "none", suggest "minimal" (~same token budget)
+		return ThinkingMinimal
+	}
+	return ThinkingOff
+}
+
 // buildAnthropicProviderOptions returns fantasy.ProviderOptions configured for
 // Anthropic models with extended thinking. When thinking is enabled, it sets
 // SendReasoning to true and configures the thinking budget. For thinking-off
@@ -1123,7 +1235,7 @@ func loadOllamaModelWithFallback(ctx context.Context, baseURL, modelName string,
 	// Phase 1: Check if model exists locally
 	if err := checkOllamaModelExists(client, baseURL, modelName); err != nil {
 		// Phase 2: Pull model if not found
-		if err := pullOllamaModel(ctx, client, baseURL, modelName); err != nil {
+		if err := pullOllamaModel(ctx, client, baseURL, modelName, config.ProgressReaderFunc); err != nil {
 			return nil, fmt.Errorf("failed to pull model %s: %v", modelName, err)
 		}
 	}
@@ -1212,11 +1324,7 @@ func checkOllamaModelExists(client *http.Client, baseURL, modelName string) erro
 	return nil
 }
 
-func pullOllamaModel(ctx context.Context, client *http.Client, baseURL, modelName string) error {
-	return pullOllamaModelWithProgress(ctx, client, baseURL, modelName, true)
-}
-
-func pullOllamaModelWithProgress(ctx context.Context, client *http.Client, baseURL, modelName string, showProgress bool) error {
+func pullOllamaModel(ctx context.Context, client *http.Client, baseURL, modelName string, progressFn func(io.Reader) io.ReadCloser) error {
 	reqBody := map[string]string{"name": modelName}
 	jsonBody, _ := json.Marshal(reqBody)
 
@@ -1240,10 +1348,10 @@ func pullOllamaModelWithProgress(ctx context.Context, client *http.Client, baseU
 		return fmt.Errorf("failed to pull model (status %d): %s", resp.StatusCode, string(body))
 	}
 
-	if showProgress {
-		progressReader := progress.NewProgressReader(resp.Body)
-		defer func() { _ = progressReader.Close() }()
-		_, err = io.ReadAll(progressReader)
+	if progressFn != nil {
+		pr := progressFn(resp.Body)
+		defer func() { _ = pr.Close() }()
+		_, err = io.ReadAll(pr)
 	} else {
 		_, err = io.ReadAll(resp.Body)
 	}

internal/models/registry.go

@@ -26,6 +26,11 @@ type ModelInfo struct {
 	ProviderNPM string // Model-specific provider npm override (e.g. "@ai-sdk/anthropic")
 	BaseURL     string // Per-model base URL override (custom models only)
 	APIKey      string // Per-model API key override (custom models only)
+
+	// Params holds per-model generation parameter defaults. These are applied
+	// when the user hasn't explicitly set the corresponding CLI flag or global
+	// config value. Nil pointer fields mean "no model-level default".
+	Params *GenerationParams
 }
 
 // SupportsCaching returns true if this model family supports prompt caching.
@@ -236,6 +241,18 @@ func (r *ModelsRegistry) LookupModel(provider, modelID string) *ModelInfo {
 	return &modelInfo
 }
 
+// LookupModelForSettings is a convenience function that parses a
+// "provider/model" string and looks up the ModelInfo in the global registry.
+// Returns nil when the model string is invalid or the model is unknown.
+// Used by Kit.SetModel to pre-apply per-model settings before CreateProvider.
+func LookupModelForSettings(modelString string) *ModelInfo {
+	provider, modelName, err := ParseModelString(modelString)
+	if err != nil {
+		return nil
+	}
+	return GetGlobalRegistry().LookupModel(provider, modelName)
+}
+
 // getRequiredEnvVars returns the required environment variables for a provider.
 func (r *ModelsRegistry) getRequiredEnvVars(provider string) ([]string, error) {
 	providerInfo, exists := r.providers[provider]
@@ -362,11 +379,6 @@ func (r *ModelsRegistry) GetLLMProviders() []string {
 	return providers
 }
 
-// Deprecated: Use GetLLMProviders instead.
-func (r *ModelsRegistry) GetFantasyProviders() []string {
-	return r.GetLLMProviders()
-}
-
 // isProviderLLMSupported checks if a provider can be used with the LLM layer.
 func isProviderLLMSupported(providerID string, info *ProviderInfo) bool {
 	// Ollama and custom are always supported (model names are user-defined).

internal/models/rightsize_test.go

@@ -0,0 +1,148 @@
+package models
+
+import (
+	"testing"
+
+	"github.com/spf13/pflag"
+	"github.com/spf13/viper"
+)
+
+// bindMaxTokensFlag wires a fresh pflag-backed "max-tokens" key into viper so
+// isExplicitlySet behaves the same way it does in production. Returns a
+// cleanup function that removes the binding so sibling tests see a clean
+// state.
+func bindMaxTokensFlag(t *testing.T, args []string) func() {
+	t.Helper()
+	fs := pflag.NewFlagSet("test", pflag.ContinueOnError)
+	fs.Int("max-tokens", 8192, "")
+	if err := viper.BindPFlag("max-tokens", fs.Lookup("max-tokens")); err != nil {
+		t.Fatalf("BindPFlag: %v", err)
+	}
+	if err := fs.Parse(args); err != nil {
+		t.Fatalf("fs.Parse: %v", err)
+	}
+	return func() {
+		viper.Reset()
+	}
+}
+
+func TestRightSizeMaxTokens_RaisesWhenBelowCeiling(t *testing.T) {
+	cleanup := bindMaxTokensFlag(t, nil) // no args → flag.Changed = false
+	defer cleanup()
+
+	config := &ProviderConfig{MaxTokens: 8192}
+	modelInfo := &ModelInfo{
+		ID:    "claude-sonnet-4-5",
+		Limit: Limit{Context: 200000, Output: 64000},
+	}
+
+	rightSizeMaxTokens(config, modelInfo)
+
+	if config.MaxTokens != 32768 {
+		t.Errorf("expected MaxTokens raised to defaultRightSizeCap (32768), got %d", config.MaxTokens)
+	}
+}
+
+func TestRightSizeMaxTokens_CapsAtDefaultRightSizeCap(t *testing.T) {
+	cleanup := bindMaxTokensFlag(t, nil)
+	defer cleanup()
+
+	config := &ProviderConfig{MaxTokens: 8192}
+	// Mistral Devstral has 262144 output — we should still cap at 32768.
+	modelInfo := &ModelInfo{
+		ID:    "devstral-medium-latest",
+		Limit: Limit{Context: 262144, Output: 262144},
+	}
+
+	rightSizeMaxTokens(config, modelInfo)
+
+	if config.MaxTokens != defaultRightSizeCap {
+		t.Errorf("expected MaxTokens capped at %d, got %d", defaultRightSizeCap, config.MaxTokens)
+	}
+}
+
+func TestRightSizeMaxTokens_UsesExactOutputWhenBelowCap(t *testing.T) {
+	cleanup := bindMaxTokensFlag(t, nil)
+	defer cleanup()
+
+	config := &ProviderConfig{MaxTokens: 4096}
+	// Model with output limit smaller than the cap.
+	modelInfo := &ModelInfo{
+		ID:    "gpt-4",
+		Limit: Limit{Context: 8192, Output: 8192},
+	}
+
+	rightSizeMaxTokens(config, modelInfo)
+
+	if config.MaxTokens != 8192 {
+		t.Errorf("expected MaxTokens raised to model output ceiling (8192), got %d", config.MaxTokens)
+	}
+}
+
+func TestRightSizeMaxTokens_DoesNotLowerCurrentValue(t *testing.T) {
+	cleanup := bindMaxTokensFlag(t, nil)
+	defer cleanup()
+
+	// User (via per-model settings, applied earlier) already bumped MaxTokens
+	// above the cap — we must not clobber their choice.
+	config := &ProviderConfig{MaxTokens: 100000}
+	modelInfo := &ModelInfo{
+		ID:    "devstral-medium-latest",
+		Limit: Limit{Context: 262144, Output: 262144},
+	}
+
+	rightSizeMaxTokens(config, modelInfo)
+
+	if config.MaxTokens != 100000 {
+		t.Errorf("expected MaxTokens preserved at 100000, got %d", config.MaxTokens)
+	}
+}
+
+func TestRightSizeMaxTokens_RespectsExplicitFlag(t *testing.T) {
+	// Simulate `--max-tokens 4096` on the command line.
+	cleanup := bindMaxTokensFlag(t, []string{"--max-tokens", "4096"})
+	defer cleanup()
+
+	config := &ProviderConfig{MaxTokens: 4096}
+	modelInfo := &ModelInfo{
+		ID:    "claude-sonnet-4-5",
+		Limit: Limit{Context: 200000, Output: 64000},
+	}
+
+	rightSizeMaxTokens(config, modelInfo)
+
+	if config.MaxTokens != 4096 {
+		t.Errorf("expected explicit --max-tokens to be preserved (4096), got %d", config.MaxTokens)
+	}
+}
+
+func TestRightSizeMaxTokens_NilModelInfo(t *testing.T) {
+	cleanup := bindMaxTokensFlag(t, nil)
+	defer cleanup()
+
+	config := &ProviderConfig{MaxTokens: 8192}
+	// Custom model / Ollama / unknown provider → no model info.
+	rightSizeMaxTokens(config, nil)
+
+	if config.MaxTokens != 8192 {
+		t.Errorf("expected MaxTokens unchanged with nil modelInfo, got %d", config.MaxTokens)
+	}
+}
+
+func TestRightSizeMaxTokens_ZeroOutputLimit(t *testing.T) {
+	cleanup := bindMaxTokensFlag(t, nil)
+	defer cleanup()
+
+	config := &ProviderConfig{MaxTokens: 8192}
+	// Model present in catalog but with no known output limit.
+	modelInfo := &ModelInfo{
+		ID:    "unknown-model",
+		Limit: Limit{Context: 0, Output: 0},
+	}
+
+	rightSizeMaxTokens(config, modelInfo)
+
+	if config.MaxTokens != 8192 {
+		t.Errorf("expected MaxTokens unchanged with zero output limit, got %d", config.MaxTokens)
+	}
+}

internal/prompts/template.go

@@ -7,10 +7,12 @@ import (
 	"regexp"
 	"strconv"
 	"strings"
+
+	"github.com/mark3labs/kit/internal/fences"
 )
 
 // PromptTemplate is a named prompt template with shell-style argument placeholders.
-// It supports Pi-style $1, $2, $@, $ARGUMENTS, ${@:N}, ${@:N:L} syntax.
+// It supports Pi-style $1, $2, $@, $+, $ARGUMENTS, ${@:N}, ${@:N:L} syntax.
 type PromptTemplate struct {
 	// Name is the human-readable identifier for this template.
 	Name string
@@ -120,19 +122,28 @@ func ParseCommandArgs(input string) []string {
 
 // argPlaceholder matches shell-style argument placeholders:
 //   - $1, $2, etc. - positional arguments
-//   - $@ - all arguments
+//   - $@ - all arguments (zero or more)
+//   - $+ - all arguments (one or more required)
 //   - $ARGUMENTS - all arguments (alias for $@)
 //   - ${@:N} - arguments from N onwards
 //   - ${@:N:L} - L arguments starting from N
-var argPlaceholder = regexp.MustCompile(`\$\{(\d+)\}|\$\{(\d+):(\d+)\}|\$\{ARGUMENTS\}|\$\{@(:\d+)?(:\d+)?\}|\$(\d+)|\$@|\$ARGUMENTS`)
+var argPlaceholder = regexp.MustCompile(`\$\{(\d+)\}|\$\{(\d+):(\d+)\}|\$\{ARGUMENTS\}|\$\{@(:\d+)?(:\d+)?\}|\$(\d+)|\$@|\$\+|\$ARGUMENTS`)
 
 // SubstituteArgs replaces argument placeholders in content with values from args.
 // Supported placeholders:
 //   - $N, ${N} - the Nth argument (1-indexed)
-//   - $@, $ARGUMENTS, ${ARGUMENTS} - all arguments joined with spaces
+//   - $@, $+, $ARGUMENTS, ${ARGUMENTS} - all arguments joined with spaces
 //   - ${@:N} - arguments from index N onwards (0-indexed)
 //   - ${@:N:L} - L arguments starting from index N (0-indexed)
 func SubstituteArgs(content string, args []string) string {
+	return fences.ReplaceOutside(content, func(segment string) string {
+		return substituteArgsInSegment(segment, args)
+	})
+}
+
+// substituteArgsInSegment performs argument substitution on a single text
+// segment that is known to be outside fenced code blocks.
+func substituteArgsInSegment(content string, args []string) string {
 	return argPlaceholder.ReplaceAllStringFunc(content, func(match string) string {
 		// Check for ${N} or ${N:M} format
 		if strings.HasPrefix(match, "${") && strings.Contains(match, "}") {
@@ -191,8 +202,8 @@ func SubstituteArgs(content string, args []string) string {
 		if strings.HasPrefix(match, "$") && !strings.HasPrefix(match, "${") {
 			suffix := match[1:]
 
-			// $@ or $ARGUMENTS
-			if suffix == "@" || suffix == "ARGUMENTS" {
+			// $@, $+, or $ARGUMENTS
+			if suffix == "@" || suffix == "+" || suffix == "ARGUMENTS" {
 				return strings.Join(args, " ")
 			}
 
@@ -266,6 +277,48 @@ func joinArgsRange(args []string, start, length int) string {
 	return strings.Join(args[start:end], " ")
 }
 
+// HasArgPlaceholders reports whether the template content contains any
+// argument placeholders ($1, $@, $ARGUMENTS, ${@:...}, etc.).
+// Placeholders inside fenced code blocks and inline code spans are ignored.
+func (t *PromptTemplate) HasArgPlaceholders() bool {
+	return argPlaceholder.MatchString(fences.StripCode(t.Content))
+}
+
+// RequiredArgs returns the number of positional arguments the template
+// expects. This is determined by the highest $N or ${N} placeholder found
+// in the content (1-indexed, so $2 means 2 args required). The $+
+// placeholder (required variadic) ensures at least 1. Optional wildcards
+// ($@, $ARGUMENTS) do not contribute to the count.
+func (t *PromptTemplate) RequiredArgs() int {
+	content := fences.StripCode(t.Content)
+	maxN := 0
+	hasRequiredVariadic := strings.Contains(content, "$+")
+	for _, match := range argPlaceholder.FindAllStringSubmatch(content, -1) {
+		// Group 1: ${N} format — the N value.
+		if match[1] != "" {
+			if n, err := strconv.Atoi(match[1]); err == nil && n > maxN {
+				maxN = n
+			}
+		}
+		// Group 2: ${N:M} format — the N value (start index).
+		if match[2] != "" {
+			if n, err := strconv.Atoi(match[2]); err == nil && n > maxN {
+				maxN = n
+			}
+		}
+		// Group 6: $N format (no braces) — the N value.
+		if match[6] != "" {
+			if n, err := strconv.Atoi(match[6]); err == nil && n > maxN {
+				maxN = n
+			}
+		}
+	}
+	if hasRequiredVariadic && maxN < 1 {
+		maxN = 1
+	}
+	return maxN
+}
+
 // Expand substitutes arguments into the template content and returns the result.
 // It first parses args from the input string, then substitutes them into the template.
 func (t *PromptTemplate) Expand(argsInput string) string {

internal/prompts/template_test.go

@@ -129,6 +129,48 @@ func TestSubstituteArgs(t *testing.T) {
 			args:     []string{},
 			expected: "Args: ",
 		},
+		{
+			name:     "$1 inside code block preserved",
+			content:  "Use $1 here\n```bash\necho $1\n```\ndone",
+			args:     []string{"foo"},
+			expected: "Use foo here\n```bash\necho $1\n```\ndone",
+		},
+		{
+			name:     "$@ inside code block preserved",
+			content:  "Run $@\n```\necho $@\n```\n",
+			args:     []string{"a", "b"},
+			expected: "Run a b\n```\necho $@\n```\n",
+		},
+		{
+			name:     "all placeholders inside code block",
+			content:  "Prompt\n```\n$1 $2 $@\n```\n",
+			args:     []string{"x"},
+			expected: "Prompt\n```\n$1 $2 $@\n```\n",
+		},
+		{
+			name:     "$1 inside inline code preserved",
+			content:  "Use `$1` here and $1 outside",
+			args:     []string{"foo"},
+			expected: "Use `$1` here and foo outside",
+		},
+		{
+			name:     "$+ required variadic",
+			content:  "Args: $+",
+			args:     []string{"a", "b", "c"},
+			expected: "Args: a b c",
+		},
+		{
+			name:     "$+ with empty args",
+			content:  "Args: $+",
+			args:     []string{},
+			expected: "Args: ",
+		},
+		{
+			name:     "all placeholders in inline code",
+			content:  "Use `$1` and `$@` for args",
+			args:     []string{"x"},
+			expected: "Use `$1` and `$@` for args",
+		},
 	}
 
 	for _, tt := range tests {
@@ -213,3 +255,78 @@ func TestPromptTemplateExpand(t *testing.T) {
 		})
 	}
 }
+
+func TestHasArgPlaceholders(t *testing.T) {
+	tests := []struct {
+		name    string
+		content string
+		want    bool
+	}{
+		{"no placeholders", "Just a plain prompt with no args", false},
+		{"$1 placeholder", "Create a $1 component", true},
+		{"$@ placeholder", "Run with args: $@", true},
+		{"$ARGUMENTS placeholder", "Features: $ARGUMENTS", true},
+		{"${1} placeholder", "Name: ${1}", true},
+		{"${ARGUMENTS} placeholder", "All: ${ARGUMENTS}", true},
+		{"${@:1} placeholder", "Rest: ${@:1}", true},
+		{"${@:1:2} placeholder", "Slice: ${@:1:2}", true},
+		{"dollar in text", "Cost is one hundred dollars", false},
+		{"empty content", "", false},
+		{"$1 inside code block only", "Prompt\n```\necho $1\n```\n", false},
+		{"$1 outside and inside code block", "Use $1 here\n```\necho $1\n```\n", true},
+		{"$@ inside code block only", "Prompt\n```bash\necho $@\n```\n", false},
+		{"$+ placeholder", "Run with args: $+", true},
+		{"$+ inside inline code only", "Use `$+` for required args", false},
+		{"$1 inside inline code only", "Use `$1` for positional args", false},
+		{"$1 outside and in inline code", "Create $1 (see `$1` syntax)", true},
+		{"$@ outside $1 in inline code", "Run $@ with `$1` syntax", true},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			tpl := &PromptTemplate{Content: tt.content}
+			if got := tpl.HasArgPlaceholders(); got != tt.want {
+				t.Errorf("HasArgPlaceholders() = %v, want %v", got, tt.want)
+			}
+		})
+	}
+}
+
+func TestRequiredArgs(t *testing.T) {
+	tests := []struct {
+		name    string
+		content string
+		want    int
+	}{
+		{"no placeholders", "Just a plain prompt", 0},
+		{"$1 only", "Create a $1 component", 1},
+		{"$1 and $2", "Create $1 with $2", 2},
+		{"$3 skipping $2", "Use $1 and $3", 3},
+		{"${1} braced", "Name: ${1}", 1},
+		{"${2} braced", "Name: ${1} Desc: ${2}", 2},
+		{"$@ only", "Run with: $@", 0},
+		{"$ARGUMENTS only", "Features: $ARGUMENTS", 0},
+		{"${ARGUMENTS} only", "All: ${ARGUMENTS}", 0},
+		{"$1 and $@", "Create $1 with extras: $@", 1},
+		{"${@:1} slice only", "Rest: ${@:1}", 0},
+		{"${@:1:2} slice only", "Slice: ${@:1:2}", 0},
+		{"mixed $1 $2 and $@", "Create $1 named $2: $@", 2},
+		{"empty content", "", 0},
+		{"$2 inside code block only", "Prompt\n```\n$1 $2\n```\n", 0},
+		{"$1 outside $2 inside code block", "Use $1\n```\n$2 inside\n```\n", 1},
+		{"$+ only", "Run with: $+", 1},
+		{"$+ and $2", "Create $2 with: $+", 2},
+		{"$+ inside inline code only", "Use `$+` for required args", 0},
+		{"$1 and $2 in inline code only", "Use `$1` and `$2` for args", 0},
+		{"$1 outside $2 in inline code", "Create $1 (see `$2`)", 1},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			tpl := &PromptTemplate{Content: tt.content}
+			if got := tpl.RequiredArgs(); got != tt.want {
+				t.Errorf("RequiredArgs() = %d, want %d", got, tt.want)
+			}
+		})
+	}
+}

internal/session/compaction_cycle_test.go

@@ -0,0 +1,66 @@
+package session
+
+import (
+	"testing"
+
+	"github.com/mark3labs/kit/internal/message"
+)
+
+// TestCompactionParentCycleRegression tests that after multiple compactions,
+// newly appended messages always have a valid parent chain and BuildContext
+// returns the correct messages.
+func TestCompactionParentCycleRegression(t *testing.T) {
+	tm := InMemoryTreeSession("/test")
+
+	// Simulate a long conversation with multiple compactions.
+	msg1, _ := tm.AppendMessage(message.Message{Role: message.RoleUser, Parts: []message.ContentPart{message.TextContent{Text: "msg1"}}})
+	msg2, _ := tm.AppendMessage(message.Message{Role: message.RoleAssistant, Parts: []message.ContentPart{message.TextContent{Text: "msg2"}}})
+
+	// First compaction
+	comp1, _ := tm.AppendCompaction("Summary 1", msg1, 1000, 500, 1, []string{}, []string{})
+
+	msg3, _ := tm.AppendMessage(message.Message{Role: message.RoleUser, Parts: []message.ContentPart{message.TextContent{Text: "msg3"}}})
+	msg4, _ := tm.AppendMessage(message.Message{Role: message.RoleAssistant, Parts: []message.ContentPart{message.TextContent{Text: "msg4"}}})
+
+	// Second compaction
+	comp2, _ := tm.AppendCompaction("Summary 2", msg3, 1000, 500, 1, []string{}, []string{})
+
+	msg5, _ := tm.AppendMessage(message.Message{Role: message.RoleUser, Parts: []message.ContentPart{message.TextContent{Text: "msg5"}}})
+	msg6, _ := tm.AppendMessage(message.Message{Role: message.RoleAssistant, Parts: []message.ContentPart{message.TextContent{Text: "msg6"}}})
+
+	// Verify parent chain integrity
+	for _, id := range []string{msg1, msg2, comp1, msg3, msg4, comp2, msg5, msg6} {
+		entry := tm.GetEntry(id)
+		if entry == nil {
+			t.Fatalf("entry %s not found in index", id)
+		}
+	}
+
+	// Walk parent chain from msg6 — must reach root without cycles
+	visited := make(map[string]bool)
+	current := msg6
+	for current != "" {
+		if visited[current] {
+			t.Fatalf("cycle detected at entry %s", current)
+		}
+		visited[current] = true
+		entry := tm.GetEntry(current)
+		if entry == nil {
+			t.Fatalf("entry %s missing from index during parent walk", current)
+		}
+		parent := ""
+		switch e := entry.(type) {
+		case *MessageEntry:
+			parent = e.ParentID
+		case *CompactionEntry:
+			parent = e.ParentID
+		}
+		current = parent
+	}
+
+	// BuildContext should return: Summary2 + msg6 + msg5 + msg3 + msg4 = 5 messages
+	msgs, _, _ := tm.BuildContext()
+	if len(msgs) != 5 {
+		t.Fatalf("expected 5 messages, got %d: %+v", len(msgs), msgs)
+	}
+}

internal/session/tree_cycle_test.go

@@ -0,0 +1,109 @@
+package session
+
+import (
+	"testing"
+
+	"github.com/mark3labs/kit/internal/message"
+)
+
+// TestDetectCycleWithCorruptedParentChain tests that cycle detection works
+// when a corrupted session has circular parent references.
+func TestDetectCycleWithCorruptedParentChain(t *testing.T) {
+	tm := InMemoryTreeSession("/test")
+
+	// Create normal chain: msg1 -> msg2 -> msg3
+	id1, _ := tm.AppendMessage(message.Message{Role: message.RoleUser, Parts: []message.ContentPart{message.TextContent{Text: "msg1"}}})
+	_, _ = tm.AppendMessage(message.Message{Role: message.RoleAssistant, Parts: []message.ContentPart{message.TextContent{Text: "msg2"}}})
+	id3, _ := tm.AppendMessage(message.Message{Role: message.RoleUser, Parts: []message.ContentPart{message.TextContent{Text: "msg3"}}})
+
+	// Simulate corruption: manually set msg1's parent to msg3, creating cycle
+	// This simulates the condition seen in the user's session
+	for _, entry := range tm.entries {
+		if e, ok := entry.(*MessageEntry); ok && e.ID == id1 {
+			e.ParentID = id3 // Create cycle: msg1 -> msg3 -> ... -> msg1
+			break
+		}
+	}
+
+	// DetectCycle should find the cycle
+	// The cycle is: id1 -> id3 -> id2 -> id1
+	// So detecting from id3 should find id1 as the repeat
+	cycle, entry := tm.DetectCycle(id3)
+	if !cycle {
+		t.Fatal("expected to detect cycle, but none found")
+	}
+	// The cycle entry could be id1 or id3 depending on where we start
+	if entry != id1 && entry != id3 {
+		t.Fatalf("expected cycle at %s or %s, got %s", id1, id3, entry)
+	}
+
+	// BuildContext should still work (it has its own cycle detection)
+	// but will truncate at the cycle point
+	msgs, _, _ := tm.BuildContext()
+	if len(msgs) == 0 {
+		t.Fatal("BuildContext returned no messages")
+	}
+}
+
+// TestAppendMessageRejectsInvalidParent tests that AppendMessage rejects
+// appending when the current leaf has a broken parent chain.
+func TestAppendMessageRejectsInvalidParent(t *testing.T) {
+	tm := InMemoryTreeSession("/test")
+
+	// Create normal message
+	id1, err := tm.AppendMessage(message.Message{Role: message.RoleUser, Parts: []message.ContentPart{message.TextContent{Text: "msg1"}}})
+	if err != nil {
+		t.Fatalf("failed to append msg1: %v", err)
+	}
+
+	// Simulate corruption: set leafID to a non-existent ID
+	tm.leafID = "non-existent-id"
+
+	// Next append should fail validation
+	_, err = tm.AppendMessage(message.Message{Role: message.RoleAssistant, Parts: []message.ContentPart{message.TextContent{Text: "msg2"}}})
+	if err == nil {
+		t.Fatal("expected error when appending with invalid leafID, got nil")
+	}
+
+	// Restore valid leafID
+	tm.leafID = id1
+
+	// Append should succeed now
+	_, err = tm.AppendMessage(message.Message{Role: message.RoleAssistant, Parts: []message.ContentPart{message.TextContent{Text: "msg3"}}})
+	if err != nil {
+		t.Fatalf("failed to append msg3 after restoring leafID: %v", err)
+	}
+}
+
+// TestBuildContextHandlesCycleGracefully tests that BuildContext handles
+// cycles gracefully by truncating the branch.
+func TestBuildContextHandlesCycleGracefully(t *testing.T) {
+	tm := InMemoryTreeSession("/test")
+
+	// Create messages
+	id1, _ := tm.AppendMessage(message.Message{Role: message.RoleUser, Parts: []message.ContentPart{message.TextContent{Text: "msg1"}}})
+	_, _ = tm.AppendMessage(message.Message{Role: message.RoleAssistant, Parts: []message.ContentPart{message.TextContent{Text: "msg2"}}})
+	id3, _ := tm.AppendMessage(message.Message{Role: message.RoleUser, Parts: []message.ContentPart{message.TextContent{Text: "msg3"}}})
+
+	// Verify normal case works
+	msgs, _, _ := tm.BuildContext()
+	if len(msgs) != 3 {
+		t.Fatalf("expected 3 messages, got %d", len(msgs))
+	}
+
+	// Simulate cycle: set msg1's parent to msg3
+	for _, entry := range tm.entries {
+		if e, ok := entry.(*MessageEntry); ok && e.ID == id1 {
+			e.ParentID = id3
+			break
+		}
+	}
+
+	// BuildContext should handle cycle gracefully (getBranchLocked has cycle detection)
+	msgs, _, _ = tm.BuildContext()
+	// Should only include messages from the cycle: msg3, msg2, msg1
+	// (msg3 is leaf, walks to msg2 -> msg1 -> msg3 (cycle detected, stops))
+	if len(msgs) != 3 {
+		t.Fatalf("expected 3 messages in cycle case, got %d: %+v", len(msgs), msgs)
+	}
+}

internal/session/tree_manager.go

@@ -365,6 +365,9 @@ func OpenTreeSession(path string) (*TreeManager, error) {
 		tm.leafID = tm.EntryID(tm.entries[len(tm.entries)-1])
 	}
 
+	// Validate tree integrity and log diagnostics
+	tm.LogTreeDiagnostics()
+
 	// Open file for appending.
 	f, err := os.OpenFile(path, os.O_WRONLY|os.O_APPEND, 0644)
 	if err != nil {
@@ -410,6 +413,12 @@ func (tm *TreeManager) AppendMessage(msg message.Message) (string, error) {
 	tm.mu.Lock()
 	defer tm.mu.Unlock()
 
+	// Validate parent chain before appending to detect/prevent cycles
+	// that could be caused by external file corruption or race conditions.
+	if err := tm.validateParentChainLocked(tm.leafID, ""); err != nil {
+		return "", fmt.Errorf("parent chain validation failed: %w", err)
+	}
+
 	entry, err := NewMessageEntry(tm.leafID, msg)
 	if err != nil {
 		return "", err
@@ -518,6 +527,13 @@ func (tm *TreeManager) AppendCompaction(summary, firstKeptEntryID string, tokens
 	tm.mu.Lock()
 	defer tm.mu.Unlock()
 
+	// Validate that firstKeptEntryID exists if provided
+	if firstKeptEntryID != "" {
+		if _, ok := tm.index[firstKeptEntryID]; !ok {
+			return "", fmt.Errorf("first kept entry %q does not exist", firstKeptEntryID)
+		}
+	}
+
 	// The compaction entry has no parent, making it a new "root" for the
 	// post-compaction branch. This ensures old compacted messages are not
 	// traversed when walking from the current leaf.
@@ -1213,12 +1229,32 @@ func (tm *TreeManager) getBranchLocked(fromID string) []any {
 }
 
 // buildTreeNode recursively builds a TreeNode from an entry ID.
+// It includes a depth limit to prevent infinite recursion in case of
+// corrupted parent-child relationships.
 func (tm *TreeManager) buildTreeNode(id string) *TreeNode {
+	return tm.buildTreeNodeDepth(id, 0, make(map[string]bool))
+}
+
+// buildTreeNodeDepth is the internal implementation with depth tracking.
+func (tm *TreeManager) buildTreeNodeDepth(id string, depth int, visited map[string]bool) *TreeNode {
+	const maxDepth = 1000
+	if depth > maxDepth {
+		// Cycle or extremely deep tree detected, stop recursing
+		return nil
+	}
+	if visited[id] {
+		// Cycle detected, stop recursing
+		return nil
+	}
+
 	entry, ok := tm.index[id]
 	if !ok {
 		return nil
 	}
 
+	visited[id] = true
+	defer delete(visited, id)
+
 	node := &TreeNode{
 		Entry:    entry,
 		ID:       id,
@@ -1226,7 +1262,7 @@ func (tm *TreeManager) buildTreeNode(id string) *TreeNode {
 	}
 
 	for _, childID := range tm.childIndex[id] {
-		child := tm.buildTreeNode(childID)
+		child := tm.buildTreeNodeDepth(childID, depth+1, visited)
 		if child != nil {
 			node.Children = append(node.Children, child)
 		}

internal/session/tree_validation.go

@@ -0,0 +1,143 @@
+package session
+
+import (
+	"fmt"
+	"log"
+)
+
+// ValidateParentChain checks that the parent ID points to an existing entry
+// and that appending this entry would not create a cycle. This should be called
+// before appending any entry to the tree.
+// Returns an error if the parent is invalid or would create a cycle.
+func (tm *TreeManager) ValidateParentChain(parentID string, newEntryID string) error {
+	if parentID == "" {
+		// Empty parent is valid (root entry)
+		return nil
+	}
+
+	// Check that parent exists
+	if _, ok := tm.index[parentID]; !ok {
+		return fmt.Errorf("parent entry %q does not exist in index", parentID)
+	}
+
+	// Check that we're not creating a cycle by walking up the parent chain
+	// from parentID and ensuring we don't hit newEntryID (or any node that
+	// has newEntryID as an ancestor, but since newEntryID is new, just check
+	// that parentID isn't newEntryID, which it can't be since we check existence)
+	visited := make(map[string]bool)
+	current := parentID
+	for current != "" {
+		if visited[current] {
+			return fmt.Errorf("existing cycle detected at entry %q", current)
+		}
+		visited[current] = true
+
+		// Safety check: if somehow we reach the new entry ID, that's a cycle
+		if current == newEntryID {
+			return fmt.Errorf("would create cycle: entry %q cannot be its own ancestor", newEntryID)
+		}
+
+		entry, ok := tm.index[current]
+		if !ok {
+			return fmt.Errorf("broken parent chain: entry %q not found", current)
+		}
+		current = tm.entryParentID(entry)
+	}
+
+	return nil
+}
+
+// DetectCycle walks the parent chain from the given entry ID and returns true
+// if a cycle is detected. This is used for diagnostics.
+func (tm *TreeManager) DetectCycle(fromID string) (cycleDetected bool, cycleEntry string) {
+	visited := make(map[string]bool)
+	current := fromID
+	for current != "" {
+		if visited[current] {
+			return true, current
+		}
+		visited[current] = true
+		entry, ok := tm.index[current]
+		if !ok {
+			return false, ""
+		}
+		current = tm.entryParentID(entry)
+	}
+	return false, ""
+}
+
+// LogTreeDiagnostics logs information about the tree structure for debugging.
+// Call this after OpenTreeSession or when anomalies are detected.
+func (tm *TreeManager) LogTreeDiagnostics() {
+	tm.mu.RLock()
+	defer tm.mu.RUnlock()
+
+	log.Printf("[TreeManager] Entry count: %d, Leaf ID: %s", len(tm.entries), tm.leafID)
+
+	// Check for cycles from leaf
+	if tm.leafID != "" {
+		if cycle, entry := tm.detectCycleLocked(tm.leafID); cycle {
+			log.Printf("[TreeManager] WARNING: Cycle detected in tree at entry %s", entry)
+		}
+	}
+
+	// Count entries by type
+	counts := make(map[EntryType]int)
+	for _, entry := range tm.entries {
+		var et EntryType
+		switch e := entry.(type) {
+		case *MessageEntry:
+			et = e.Type
+		case *ModelChangeEntry:
+			et = e.Type
+		case *BranchSummaryEntry:
+			et = e.Type
+		case *LabelEntry:
+			et = e.Type
+		case *SessionInfoEntry:
+			et = e.Type
+		case *ExtensionDataEntry:
+			et = e.Type
+		case *CompactionEntry:
+			et = e.Type
+		default:
+			et = "unknown"
+		}
+		counts[et]++
+	}
+	log.Printf("[TreeManager] Entry types: %+v", counts)
+}
+
+// detectCycleLocked is the internal version of DetectCycle (must hold read lock)
+func (tm *TreeManager) detectCycleLocked(fromID string) (bool, string) {
+	visited := make(map[string]bool)
+	current := fromID
+	for current != "" {
+		if visited[current] {
+			return true, current
+		}
+		visited[current] = true
+		entry, ok := tm.index[current]
+		if !ok {
+			return false, ""
+		}
+		current = tm.entryParentID(entry)
+	}
+	return false, ""
+}
+
+// validateParentChainLocked is the internal version used by append methods.
+// Must be called with the write lock held.
+func (tm *TreeManager) validateParentChainLocked(parentID string, newEntryID string) error {
+	if parentID == "" {
+		return nil
+	}
+	if _, ok := tm.index[parentID]; !ok {
+		return fmt.Errorf("parent entry %q does not exist", parentID)
+	}
+	// Check for existing cycles in the parent chain
+	if cycle, entry := tm.detectCycleLocked(parentID); cycle {
+		return fmt.Errorf("existing cycle detected at entry %q in parent chain", entry)
+	}
+	return nil
+}

internal/tools/connection_pool.go

@@ -8,11 +8,11 @@ import (
 	"sync"
 	"time"
 
-	"charm.land/fantasy"
 	"github.com/mark3labs/kit/internal/config"
 	"github.com/mark3labs/mcp-go/client"
 	"github.com/mark3labs/mcp-go/client/transport"
 	"github.com/mark3labs/mcp-go/mcp"
+	"github.com/mark3labs/mcp-go/server"
 )
 
 // ConnectionPoolConfig defines configuration parameters for the MCP connection pool.
@@ -60,35 +60,34 @@ type MCPConnection struct {
 // creation, health monitoring, and cleanup. The pool runs background health checks
 // to proactively identify and remove unhealthy connections.
 type MCPConnectionPool struct {
-	connections map[string]*MCPConnection
-	config      *ConnectionPoolConfig
-	mu          sync.RWMutex
-	model       fantasy.LanguageModel
-	ctx         context.Context
-	cancel      context.CancelFunc
-	debug       bool
-	debugLogger DebugLogger
-	oauthFlow   *OAuthFlowRunner
+	connections       map[string]*MCPConnection
+	config            *ConnectionPoolConfig
+	mu                sync.RWMutex
+	ctx               context.Context
+	cancel            context.CancelFunc
+	debug             bool
+	debugLogger       DebugLogger
+	oauthFlow         *OAuthFlowRunner
+	tokenStoreFactory TokenStoreFactory // custom factory for per-server token stores (nil = default FileTokenStore)
 }
 
 // NewMCPConnectionPool creates a new MCP connection pool with the specified configuration.
 // If config is nil, default configuration values will be used. The pool starts a background
 // goroutine for periodic health checks that runs until Close is called.
-// The model parameter is used for MCP servers that require sampling support.
 // Thread-safe for concurrent use immediately after creation.
-func NewMCPConnectionPool(config *ConnectionPoolConfig, model fantasy.LanguageModel, debug bool, authHandler MCPAuthHandler) *MCPConnectionPool {
+func NewMCPConnectionPool(config *ConnectionPoolConfig, debug bool, authHandler MCPAuthHandler, tokenStoreFactory TokenStoreFactory) *MCPConnectionPool {
 	if config == nil {
 		config = DefaultConnectionPoolConfig()
 	}
 
 	ctx, cancel := context.WithCancel(context.Background())
 	pool := &MCPConnectionPool{
-		connections: make(map[string]*MCPConnection),
-		config:      config,
-		model:       model,
-		ctx:         ctx,
-		cancel:      cancel,
-		debug:       debug,
+		connections:       make(map[string]*MCPConnection),
+		config:            config,
+		ctx:               ctx,
+		cancel:            cancel,
+		debug:             debug,
+		tokenStoreFactory: tokenStoreFactory,
 	}
 
 	if authHandler != nil {
@@ -306,6 +305,8 @@ func (p *MCPConnectionPool) createMCPClient(ctx context.Context, serverName stri
 		return p.createSSEClient(ctx, serverConfig)
 	case "streamable":
 		return p.createStreamableClient(ctx, serverConfig)
+	case "inprocess":
+		return p.createInProcessClient(serverConfig)
 	default:
 		return nil, fmt.Errorf("unsupported transport type '%s' for server %s", transportType, serverName)
 	}
@@ -363,19 +364,29 @@ func (p *MCPConnectionPool) createSSEClient(ctx context.Context, serverConfig co
 	}
 
 	// Enable OAuth for remote transports when an auth handler is configured.
-	// The OAuthConfig uses PKCE and the handler's redirect URI. Client ID and
-	// scopes are discovered automatically via dynamic client registration and
-	// server metadata (RFC 9728).
+	// The OAuthConfig uses PKCE and the handler's redirect URI. If the server
+	// config provides a pre-registered ClientID (for servers that don't support
+	// dynamic client registration, e.g. GitHub), it is passed through directly.
 	if p.oauthFlow != nil {
-		tokenStore, tsErr := NewFileTokenStore(serverConfig.URL)
+		tokenStore, tsErr := p.createTokenStore(serverConfig.URL)
 		if tsErr != nil {
 			return nil, fmt.Errorf("failed to create token store: %w", tsErr)
 		}
-		options = append(options, transport.WithOAuth(transport.OAuthConfig{
+		oauthCfg := transport.OAuthConfig{
 			RedirectURI: p.oauthFlow.handler.RedirectURI(),
 			PKCEEnabled: true,
 			TokenStore:  tokenStore,
-		}))
+		}
+		if serverConfig.OAuthClientID != "" {
+			oauthCfg.ClientID = serverConfig.OAuthClientID
+		}
+		if serverConfig.OAuthClientSecret != "" {
+			oauthCfg.ClientSecret = serverConfig.OAuthClientSecret
+		}
+		if len(serverConfig.OAuthScopes) > 0 {
+			oauthCfg.Scopes = serverConfig.OAuthScopes
+		}
+		options = append(options, transport.WithOAuth(oauthCfg))
 	}
 
 	sseClient, err := client.NewSSEMCPClient(serverConfig.URL, options...)
@@ -410,19 +421,29 @@ func (p *MCPConnectionPool) createStreamableClient(ctx context.Context, serverCo
 	}
 
 	// Enable OAuth for remote transports when an auth handler is configured.
-	// The OAuthConfig uses PKCE and the handler's redirect URI. Client ID and
-	// scopes are discovered automatically via dynamic client registration and
-	// server metadata (RFC 9728).
+	// The OAuthConfig uses PKCE and the handler's redirect URI. If the server
+	// config provides a pre-registered ClientID (for servers that don't support
+	// dynamic client registration, e.g. GitHub), it is passed through directly.
 	if p.oauthFlow != nil {
-		tokenStore, tsErr := NewFileTokenStore(serverConfig.URL)
+		tokenStore, tsErr := p.createTokenStore(serverConfig.URL)
 		if tsErr != nil {
 			return nil, fmt.Errorf("failed to create token store: %w", tsErr)
 		}
-		options = append(options, transport.WithHTTPOAuth(transport.OAuthConfig{
+		oauthCfg := transport.OAuthConfig{
 			RedirectURI: p.oauthFlow.handler.RedirectURI(),
 			PKCEEnabled: true,
 			TokenStore:  tokenStore,
-		}))
+		}
+		if serverConfig.OAuthClientID != "" {
+			oauthCfg.ClientID = serverConfig.OAuthClientID
+		}
+		if serverConfig.OAuthClientSecret != "" {
+			oauthCfg.ClientSecret = serverConfig.OAuthClientSecret
+		}
+		if len(serverConfig.OAuthScopes) > 0 {
+			oauthCfg.Scopes = serverConfig.OAuthScopes
+		}
+		options = append(options, transport.WithHTTPOAuth(oauthCfg))
 	}
 
 	streamableClient, err := client.NewStreamableHttpClient(serverConfig.URL, options...)
@@ -437,6 +458,32 @@ func (p *MCPConnectionPool) createStreamableClient(ctx context.Context, serverCo
 	return streamableClient, nil
 }
 
+// createInProcessClient creates an in-process MCP client that communicates
+// directly with an *server.MCPServer in the same process. No subprocess is
+// spawned and no network I/O occurs — calls go through JSON marshal →
+// MCPServer.HandleMessage → JSON unmarshal, all in-memory.
+func (p *MCPConnectionPool) createInProcessClient(serverConfig config.MCPServerConfig) (client.MCPClient, error) {
+	srv, ok := serverConfig.InProcessServer.(*server.MCPServer)
+	if !ok {
+		return nil, fmt.Errorf("InProcessServer must be *server.MCPServer, got %T", serverConfig.InProcessServer)
+	}
+	inProcessClient, err := client.NewInProcessClient(srv)
+	if err != nil {
+		return nil, fmt.Errorf("failed to create in-process client: %w", err)
+	}
+	return inProcessClient, nil
+}
+
+// createTokenStore creates a token store for the given server URL.
+// If a custom TokenStoreFactory is configured, it is used; otherwise the
+// default file-backed token store is created.
+func (p *MCPConnectionPool) createTokenStore(serverURL string) (transport.TokenStore, error) {
+	if p.tokenStoreFactory != nil {
+		return p.tokenStoreFactory(serverURL)
+	}
+	return NewFileTokenStore(serverURL)
+}
+
 // initializeClient initializes the client
 func (p *MCPConnectionPool) initializeClient(ctx context.Context, client client.MCPClient) error {
 	initCtx, cancel := context.WithTimeout(ctx, 5*time.Minute)
@@ -583,6 +630,27 @@ func (p *MCPConnectionPool) GetClients() map[string]client.MCPClient {
 	return clients
 }
 
+// RemoveConnection closes and removes a single connection from the pool.
+// Returns an error if the connection does not exist or if closing fails.
+// Thread-safe for concurrent use.
+func (p *MCPConnectionPool) RemoveConnection(serverName string) error {
+	p.mu.Lock()
+	defer p.mu.Unlock()
+
+	conn, exists := p.connections[serverName]
+	if !exists {
+		return fmt.Errorf("connection %q not found in pool", serverName)
+	}
+
+	err := conn.client.Close()
+	delete(p.connections, serverName)
+
+	if p.debugLogger != nil && p.debugLogger.IsDebugEnabled() {
+		p.debugLogger.LogDebug(fmt.Sprintf("[POOL] Removed connection %s", serverName))
+	}
+	return err
+}
+
 // Close gracefully shuts down the connection pool, closing all client connections
 // and stopping the background health check goroutine. It attempts to close all
 // connections even if some fail, logging any errors encountered.

internal/tools/fantasy_adapter.go

@@ -1,109 +0,0 @@
-package tools
-
-import (
-	"context"
-	"encoding/json"
-	"fmt"
-
-	"charm.land/fantasy"
-	"github.com/mark3labs/mcp-go/mcp"
-)
-
-// mcpFantasyTool adapts an MCP tool to the fantasy.AgentTool interface.
-// It bridges the MCP tool protocol with fantasy's agent tool system, handling
-// name prefixing, schema conversion, connection pooling, and result marshaling.
-type mcpFantasyTool struct {
-	toolInfo        fantasy.ToolInfo
-	mapping         *toolMapping
-	providerOptions fantasy.ProviderOptions
-}
-
-// Info returns the fantasy tool info including name, description, and parameter schema.
-func (t *mcpFantasyTool) Info() fantasy.ToolInfo {
-	return t.toolInfo
-}
-
-// Run executes the MCP tool by routing through the connection pool.
-// It maps the prefixed tool name back to the original name, retrieves a healthy
-// connection, invokes the tool, and converts the MCP result to a fantasy ToolResponse.
-func (t *mcpFantasyTool) Run(ctx context.Context, call fantasy.ToolCall) (fantasy.ToolResponse, error) {
-	// Parse and validate JSON arguments
-	var arguments any
-	input := call.Input
-	if input == "" || input == "{}" {
-		arguments = nil
-	} else {
-		var temp any
-		if err := json.Unmarshal([]byte(input), &temp); err != nil {
-			return fantasy.NewTextErrorResponse(fmt.Sprintf("invalid JSON arguments: %v", err)), nil
-		}
-		arguments = json.RawMessage(input)
-	}
-
-	// Get connection from pool with health check
-	conn, err := t.mapping.manager.connectionPool.GetConnectionWithHealthCheck(
-		ctx, t.mapping.serverName, t.mapping.serverConfig,
-	)
-	if err != nil {
-		return fantasy.ToolResponse{}, fmt.Errorf("failed to get healthy connection from pool: %w", err)
-	}
-
-	// Call the MCP tool using the original (unprefixed) name
-	result, err := conn.client.CallTool(ctx, mcp.CallToolRequest{
-		Request: mcp.Request{
-			Method: "tools/call",
-		},
-		Params: mcp.CallToolParams{
-			Name:      t.mapping.originalName,
-			Arguments: arguments,
-		},
-	})
-	if err != nil {
-		// Handle OAuth re-authorization: token may have expired mid-session.
-		if t.mapping.manager.connectionPool.oauthFlow != nil && IsOAuthError(err) {
-			if flowErr := t.mapping.manager.connectionPool.oauthFlow.RunAuthFlow(ctx, t.mapping.serverName, err); flowErr != nil {
-				return fantasy.ToolResponse{}, fmt.Errorf("OAuth re-authorization failed for tool %s: %w", t.mapping.originalName, flowErr)
-			}
-			// Retry the tool call after successful re-auth.
-			result, err = conn.client.CallTool(ctx, mcp.CallToolRequest{
-				Request: mcp.Request{
-					Method: "tools/call",
-				},
-				Params: mcp.CallToolParams{
-					Name:      t.mapping.originalName,
-					Arguments: arguments,
-				},
-			})
-			if err != nil {
-				t.mapping.manager.connectionPool.HandleConnectionError(t.mapping.serverName, err)
-				return fantasy.ToolResponse{}, fmt.Errorf("failed to call mcp tool after re-auth: %w", err)
-			}
-		} else {
-			// Mark connection as unhealthy for automatic recovery
-			t.mapping.manager.connectionPool.HandleConnectionError(t.mapping.serverName, err)
-			return fantasy.ToolResponse{}, fmt.Errorf("failed to call mcp tool: %w", err)
-		}
-	}
-
-	// Marshal the MCP result to JSON string
-	marshaledResult, err := json.Marshal(result)
-	if err != nil {
-		return fantasy.ToolResponse{}, fmt.Errorf("failed to marshal mcp tool result: %w", err)
-	}
-
-	// Return as text response, preserving error status from MCP
-	if result.IsError {
-		return fantasy.NewTextErrorResponse(string(marshaledResult)), nil
-	}
-	return fantasy.NewTextResponse(string(marshaledResult)), nil
-}
-
-// ProviderOptions returns provider-specific options for this tool.
-func (t *mcpFantasyTool) ProviderOptions() fantasy.ProviderOptions {
-	return t.providerOptions
-}
-
-// SetProviderOptions sets provider-specific options for this tool.
-func (t *mcpFantasyTool) SetProviderOptions(opts fantasy.ProviderOptions) {
-	t.providerOptions = opts
-}

internal/tools/inprocess_test.go

@@ -0,0 +1,244 @@
+package tools
+
+import (
+	"context"
+	"encoding/json"
+	"strings"
+	"testing"
+
+	"github.com/mark3labs/kit/internal/config"
+	"github.com/mark3labs/mcp-go/mcp"
+	"github.com/mark3labs/mcp-go/server"
+)
+
+// newTestInProcessServer creates a simple MCP server with one tool for testing.
+func newTestInProcessServer() *server.MCPServer {
+	srv := server.NewMCPServer("test-server", "1.0.0",
+		server.WithToolCapabilities(true),
+	)
+	srv.AddTool(
+		mcp.NewTool("greet",
+			mcp.WithDescription("Say hello"),
+			mcp.WithString("name", mcp.Required(), mcp.Description("Name to greet")),
+		),
+		func(ctx context.Context, req mcp.CallToolRequest) (*mcp.CallToolResult, error) {
+			name, _ := req.GetArguments()["name"].(string)
+			return mcp.NewToolResultText("Hello, " + name + "!"), nil
+		},
+	)
+	return srv
+}
+
+func TestInProcessTransportType(t *testing.T) {
+	cfg := config.MCPServerConfig{
+		Type:            "inprocess",
+		InProcessServer: newTestInProcessServer(),
+	}
+	if got := cfg.GetTransportType(); got != "inprocess" {
+		t.Errorf("GetTransportType() = %q, want %q", got, "inprocess")
+	}
+}
+
+func TestInProcessTransportTypeInferred(t *testing.T) {
+	// When Type is empty but InProcessServer is set, infer "inprocess".
+	cfg := config.MCPServerConfig{
+		InProcessServer: newTestInProcessServer(),
+	}
+	if got := cfg.GetTransportType(); got != "inprocess" {
+		t.Errorf("GetTransportType() = %q, want %q", got, "inprocess")
+	}
+}
+
+func TestInProcessValidation(t *testing.T) {
+	// Valid: InProcessServer is set.
+	validCfg := &config.Config{
+		MCPServers: map[string]config.MCPServerConfig{
+			"test": {
+				Type:            "inprocess",
+				InProcessServer: newTestInProcessServer(),
+			},
+		},
+	}
+	if err := validCfg.Validate(); err != nil {
+		t.Errorf("expected valid config, got error: %v", err)
+	}
+
+	// Invalid: type is inprocess but InProcessServer is nil.
+	invalidCfg := &config.Config{
+		MCPServers: map[string]config.MCPServerConfig{
+			"test": {
+				Type: "inprocess",
+			},
+		},
+	}
+	if err := invalidCfg.Validate(); err == nil {
+		t.Error("expected validation error for nil InProcessServer, got nil")
+	}
+}
+
+func TestConnectionPoolInProcessClient(t *testing.T) {
+	pool := NewMCPConnectionPool(DefaultConnectionPoolConfig(), false, nil, nil)
+	defer func() { _ = pool.Close() }()
+
+	ctx := context.Background()
+	srv := newTestInProcessServer()
+
+	cfg := config.MCPServerConfig{
+		Type:            "inprocess",
+		InProcessServer: srv,
+	}
+
+	conn, err := pool.GetConnection(ctx, "test-inproc", cfg)
+	if err != nil {
+		t.Fatalf("GetConnection failed: %v", err)
+	}
+
+	// Verify the connection is healthy and functional.
+	if !conn.isHealthy {
+		t.Error("expected connection to be healthy")
+	}
+
+	// List tools to verify the connection works end-to-end.
+	toolsResp, err := conn.client.ListTools(ctx, mcp.ListToolsRequest{})
+	if err != nil {
+		t.Fatalf("ListTools failed: %v", err)
+	}
+	if len(toolsResp.Tools) != 1 {
+		t.Fatalf("expected 1 tool, got %d", len(toolsResp.Tools))
+	}
+	if toolsResp.Tools[0].Name != "greet" {
+		t.Errorf("expected tool name 'greet', got %q", toolsResp.Tools[0].Name)
+	}
+}
+
+func TestConnectionPoolInProcessToolExecution(t *testing.T) {
+	pool := NewMCPConnectionPool(DefaultConnectionPoolConfig(), false, nil, nil)
+	defer func() { _ = pool.Close() }()
+
+	ctx := context.Background()
+	srv := newTestInProcessServer()
+
+	cfg := config.MCPServerConfig{
+		Type:            "inprocess",
+		InProcessServer: srv,
+	}
+
+	conn, err := pool.GetConnection(ctx, "test-inproc", cfg)
+	if err != nil {
+		t.Fatalf("GetConnection failed: %v", err)
+	}
+
+	// Call the tool.
+	result, err := conn.client.CallTool(ctx, mcp.CallToolRequest{
+		Request: mcp.Request{Method: "tools/call"},
+		Params: mcp.CallToolParams{
+			Name:      "greet",
+			Arguments: map[string]any{"name": "World"},
+		},
+	})
+	if err != nil {
+		t.Fatalf("CallTool failed: %v", err)
+	}
+	if result.IsError {
+		t.Error("expected non-error result")
+	}
+	if len(result.Content) == 0 {
+		t.Fatal("expected at least one content block")
+	}
+	text, ok := result.Content[0].(mcp.TextContent)
+	if !ok {
+		t.Fatalf("expected TextContent, got %T", result.Content[0])
+	}
+	if text.Text != "Hello, World!" {
+		t.Errorf("expected 'Hello, World!', got %q", text.Text)
+	}
+}
+
+func TestMCPToolManagerInProcess(t *testing.T) {
+	ctx := context.Background()
+	srv := newTestInProcessServer()
+
+	mgr := NewMCPToolManager()
+
+	cfg := config.MCPServerConfig{
+		Type:            "inprocess",
+		InProcessServer: srv,
+	}
+
+	count, err := mgr.AddServer(ctx, "myserver", cfg)
+	if err != nil {
+		t.Fatalf("AddServer failed: %v", err)
+	}
+	if count != 1 {
+		t.Errorf("expected 1 tool, got %d", count)
+	}
+
+	tools := mgr.GetTools()
+	if len(tools) != 1 {
+		t.Fatalf("expected 1 tool, got %d", len(tools))
+	}
+	if tools[0].Name != "myserver__greet" {
+		t.Errorf("expected tool name 'myserver__greet', got %q", tools[0].Name)
+	}
+
+	// Execute the tool.
+	input, _ := json.Marshal(map[string]any{"name": "SDK"})
+	result, err := mgr.ExecuteTool(ctx, "myserver__greet", string(input))
+	if err != nil {
+		t.Fatalf("ExecuteTool failed: %v", err)
+	}
+	if result.IsError {
+		t.Error("expected non-error result")
+	}
+	if result.Content == "" {
+		t.Error("expected non-empty result content")
+	}
+
+	// Verify result contains our greeting.
+	if !strings.Contains(result.Content, "Hello, SDK!") {
+		t.Errorf("expected 'Hello, SDK!' in result, got %q", result.Content)
+	}
+}
+
+func TestConnectionPoolInProcessInvalidServer(t *testing.T) {
+	pool := NewMCPConnectionPool(DefaultConnectionPoolConfig(), false, nil, nil)
+	defer func() { _ = pool.Close() }()
+
+	ctx := context.Background()
+
+	// Pass a non-*server.MCPServer value.
+	cfg := config.MCPServerConfig{
+		Type:            "inprocess",
+		InProcessServer: "not a server",
+	}
+
+	_, err := pool.GetConnection(ctx, "bad", cfg)
+	if err == nil {
+		t.Fatal("expected error for invalid InProcessServer type")
+	}
+}
+
+func TestConnectionPoolInProcessReuse(t *testing.T) {
+	pool := NewMCPConnectionPool(DefaultConnectionPoolConfig(), false, nil, nil)
+	defer func() { _ = pool.Close() }()
+
+	ctx := context.Background()
+	srv := newTestInProcessServer()
+	cfg := config.MCPServerConfig{
+		Type:            "inprocess",
+		InProcessServer: srv,
+	}
+
+	// Get connection twice — should reuse.
+	conn1, err := pool.GetConnection(ctx, "reuse-test", cfg)
+	if err != nil {
+		t.Fatalf("first GetConnection failed: %v", err)
+	}
+	conn2, err := pool.GetConnection(ctx, "reuse-test", cfg)
+	if err != nil {
+		t.Fatalf("second GetConnection failed: %v", err)
+	}
+	if conn1 != conn2 {
+		t.Error("expected same connection object on reuse")
+	}
+}

internal/tools/mcp.go

@@ -2,6 +2,7 @@ package tools
 
 import (
 	"context"
+	"encoding/base64"
 	"encoding/json"
 	"fmt"
 	"maps"
@@ -9,30 +10,149 @@ import (
 	"strings"
 	"sync"
 
-	"charm.land/fantasy"
+	log "github.com/charmbracelet/log"
+
 	"github.com/mark3labs/kit/internal/config"
 	"github.com/mark3labs/mcp-go/mcp"
 )
 
+// MCPTool represents a tool discovered from an MCP server. It contains all
+// the metadata needed to present the tool to an LLM (name, description, JSON
+// schema) plus the server origin information needed to execute it.
+type MCPTool struct {
+	// Name is the prefixed tool name: "serverName__toolName".
+	Name string
+	// Description is the human-readable tool description.
+	Description string
+	// Parameters is the JSON Schema properties for the tool's input.
+	Parameters map[string]any
+	// Required lists the required parameter names.
+	Required []string
+	// ServerName is the MCP server this tool belongs to.
+	ServerName string
+	// OriginalName is the unprefixed tool name on the MCP server.
+	OriginalName string
+}
+
+// MCPToolResult is the result of executing an MCP tool via ExecuteTool.
+type MCPToolResult struct {
+	// Content is the JSON-encoded result from the MCP server.
+	Content string
+	// IsError indicates the MCP server reported a tool-level error.
+	IsError bool
+}
+
+// MCPPrompt represents a prompt discovered from an MCP server.
+type MCPPrompt struct {
+	// Name is the prompt name on the MCP server.
+	Name string
+	// Description is the human-readable prompt description.
+	Description string
+	// Arguments lists the prompt's expected arguments.
+	Arguments []MCPPromptArgument
+	// ServerName is the MCP server this prompt belongs to.
+	ServerName string
+}
+
+// MCPPromptArgument describes an argument that a prompt template can accept.
+type MCPPromptArgument struct {
+	// Name is the argument name.
+	Name string
+	// Description is a human-readable description.
+	Description string
+	// Required indicates whether this argument must be provided.
+	Required bool
+}
+
+// MCPPromptMessage is a single message returned by a prompt expansion.
+type MCPPromptMessage struct {
+	// Role is "user" or "assistant".
+	Role string
+	// Content is the text content of the message.
+	Content string
+	// FileParts contains binary attachments extracted from embedded resources,
+	// images, or audio content blocks. Empty for text-only messages.
+	FileParts []MCPFilePart
+}
+
+// MCPFilePart represents a binary file attachment extracted from an MCP prompt
+// content block (ImageContent, AudioContent, or EmbeddedResource with blob data).
+type MCPFilePart struct {
+	// Filename is a best-effort name derived from the resource URI or content type.
+	Filename string
+	// Data is the raw binary content (already base64-decoded).
+	Data []byte
+	// MediaType is the MIME type (e.g. "image/png", "audio/wav").
+	MediaType string
+}
+
+// MCPPromptResult is the result of expanding an MCP prompt via GetPrompt.
+type MCPPromptResult struct {
+	// Description is an optional description returned by the server.
+	Description string
+	// Messages contains the expanded prompt messages.
+	Messages []MCPPromptMessage
+}
+
+// MCPResource represents a resource discovered from an MCP server.
+type MCPResource struct {
+	// URI is the unique resource identifier (e.g. "file:///path" or custom scheme).
+	URI string
+	// Name is a human-readable name for the resource.
+	Name string
+	// Description is an optional description of the resource.
+	Description string
+	// MIMEType is the MIME type of the resource, if known.
+	MIMEType string
+	// ServerName is the MCP server this resource belongs to.
+	ServerName string
+}
+
+// MCPResourceContent is the result of reading an MCP resource via ReadResource.
+type MCPResourceContent struct {
+	// URI is the resource URI that was read.
+	URI string
+	// MIMEType is the MIME type of the content.
+	MIMEType string
+	// Text is the text content (non-empty for text resources).
+	Text string
+	// BlobData is the decoded binary content (non-empty for blob resources).
+	BlobData []byte
+	// IsBlob is true when the content is binary (BlobData is set).
+	IsBlob bool
+}
+
 // MCPToolManager manages MCP (Model Context Protocol) tools and clients across multiple servers.
 // It provides a unified interface for loading, managing, and executing tools from various MCP servers,
 // including stdio, SSE, streamable HTTP, and built-in server types. The manager handles connection
-// pooling, health checks, tool name prefixing to avoid conflicts, and sampling support for LLM interactions.
+// pooling, health checks, tool name prefixing to avoid conflicts, and OAuth re-authorization.
 // Thread-safe for concurrent tool invocations.
 type MCPToolManager struct {
-	connectionPool *MCPConnectionPool
-	tools          []fantasy.AgentTool
-	toolMap        map[string]*toolMapping // maps prefixed tool names to their server and original name
-	mu             sync.Mutex              // protects tools and toolMap during parallel loading
-	model          fantasy.LanguageModel   // LLM model for sampling
-	authHandler    MCPAuthHandler          // OAuth handler for remote servers (nil = no OAuth)
-	config         *config.Config
-	debug          bool
-	debugLogger    DebugLogger
+	connectionPool    *MCPConnectionPool
+	tools             []MCPTool
+	toolMap           map[string]*toolMapping // maps prefixed tool names to their server and original name
+	prompts           []MCPPrompt             // prompts discovered from all servers
+	resources         []MCPResource           // resources discovered from all servers
+	subscriptions     map[string]string       // resource URI → server name for active subscriptions
+	mu                sync.Mutex              // protects tools, toolMap, prompts, resources during parallel loading
+	authHandler       MCPAuthHandler          // OAuth handler for remote servers (nil = no OAuth)
+	tokenStoreFactory TokenStoreFactory       // factory for creating per-server token stores (nil = default FileTokenStore)
+	config            *config.Config
+	debug             bool
+	debugLogger       DebugLogger
 
 	// onServerLoaded, if non-nil, is called when each server finishes loading.
 	// Called with server name, tool count, and error (nil on success).
 	onServerLoaded func(serverName string, toolCount int, err error)
+
+	// onToolsChanged, if non-nil, is called after AddServer or RemoveServer
+	// mutates the tool list. The agent layer uses this to trigger a rebuild
+	// so the LLM sees the updated tools.
+	onToolsChanged func()
+
+	// onResourcesChanged, if non-nil, is called when a subscribed resource
+	// is updated by the server.
+	onResourcesChanged func()
 }
 
 // toolMapping stores the mapping between prefixed tool names and their original details
@@ -40,27 +160,19 @@ type toolMapping struct {
 	serverName   string
 	originalName string
 	serverConfig config.MCPServerConfig
-	manager      *MCPToolManager
 }
 
 // NewMCPToolManager creates a new MCP tool manager instance.
 // Returns an initialized manager with empty tool collections ready to load tools from MCP servers.
-// The manager must be configured with SetModel and LoadTools before use.
+// The manager must be configured with LoadTools before use.
 func NewMCPToolManager() *MCPToolManager {
 	return &MCPToolManager{
-		tools:   make([]fantasy.AgentTool, 0),
-		toolMap: make(map[string]*toolMapping),
+		tools:         make([]MCPTool, 0),
+		toolMap:       make(map[string]*toolMapping),
+		subscriptions: make(map[string]string),
 	}
 }
 
-// SetModel sets the LLM model for sampling support.
-// The model is used when MCP servers request sampling operations, allowing them to
-// leverage the host's LLM capabilities for text generation tasks.
-// This method should be called before LoadTools if any MCP servers require sampling support.
-func (m *MCPToolManager) SetModel(model fantasy.LanguageModel) {
-	m.model = model
-}
-
 // SetAuthHandler sets the OAuth handler for remote MCP server authentication.
 // When set, remote transports (streamable HTTP, SSE) are configured with OAuth
 // support, enabling automatic authorization flows when servers require authentication.
@@ -69,6 +181,20 @@ func (m *MCPToolManager) SetAuthHandler(handler MCPAuthHandler) {
 	m.authHandler = handler
 }
 
+// GetAuthHandler returns the OAuth handler for remote MCP server authentication.
+// Returns nil if no handler is configured.
+func (m *MCPToolManager) GetAuthHandler() MCPAuthHandler {
+	return m.authHandler
+}
+
+// SetTokenStoreFactory sets a custom factory for creating per-server OAuth token
+// stores. When set, the factory is called for each remote MCP server instead of
+// using the default file-based token store. This method should be called before
+// LoadTools.
+func (m *MCPToolManager) SetTokenStoreFactory(factory TokenStoreFactory) {
+	m.tokenStoreFactory = factory
+}
+
 // SetDebugLogger sets the debug logger for the tool manager.
 // The logger will be used to output detailed debugging information about MCP connections,
 // tool loading, and execution. If a connection pool exists, it will also be configured
@@ -87,6 +213,157 @@ func (m *MCPToolManager) SetOnServerLoaded(cb func(serverName string, toolCount
 	m.onServerLoaded = cb
 }
 
+// SetOnToolsChanged sets the callback that's invoked after AddServer or
+// RemoveServer mutates the tool list. The agent layer uses this to trigger
+// a rebuild so the LLM sees the updated tool set.
+func (m *MCPToolManager) SetOnToolsChanged(cb func()) {
+	m.onToolsChanged = cb
+}
+
+// AddServer connects to a new MCP server at runtime and loads its tools.
+// The server's tools are immediately available to the agent after this call.
+// Returns the number of tools loaded from the server.
+//
+// If the connection pool has not been initialised yet (i.e. LoadTools was never
+// called), AddServer creates one automatically using the manager's current
+// configuration.
+//
+// Returns an error if a server with the same name is already loaded, or if
+// the connection or tool loading fails.
+func (m *MCPToolManager) AddServer(ctx context.Context, name string, cfg config.MCPServerConfig) (int, error) {
+	m.mu.Lock()
+	// Check for duplicate.
+	if _, exists := m.toolMap[name+"__"]; exists {
+		m.mu.Unlock()
+		return 0, fmt.Errorf("MCP server %q is already loaded", name)
+	}
+	// More thorough duplicate check: scan toolMap for any key with the server prefix.
+	prefix := name + "__"
+	for k := range m.toolMap {
+		if len(k) >= len(prefix) && k[:len(prefix)] == prefix {
+			m.mu.Unlock()
+			return 0, fmt.Errorf("MCP server %q is already loaded", name)
+		}
+	}
+	m.mu.Unlock()
+
+	// Lazily create the connection pool if LoadTools was never called.
+	m.ensureConnectionPool()
+
+	count, err := m.loadServerTools(ctx, name, cfg)
+	if err != nil {
+		return 0, fmt.Errorf("failed to add MCP server %q: %w", name, err)
+	}
+
+	// Notify listeners.
+	if m.onServerLoaded != nil {
+		m.onServerLoaded(name, count, nil)
+	}
+	if m.onToolsChanged != nil {
+		m.onToolsChanged()
+	}
+
+	return count, nil
+}
+
+// RemoveServer disconnects an MCP server and removes all its tools and prompts.
+// After this call the agent will no longer see or be able to call tools from
+// the named server. Returns an error if the server is not loaded.
+func (m *MCPToolManager) RemoveServer(name string) error {
+	prefix := name + "__"
+
+	m.mu.Lock()
+
+	// Check the server actually has tools or prompts loaded.
+	found := false
+	for k := range m.toolMap {
+		if len(k) >= len(prefix) && k[:len(prefix)] == prefix {
+			found = true
+			break
+		}
+	}
+	if !found {
+		// Also check prompts — a server might expose only prompts.
+		for _, p := range m.prompts {
+			if p.ServerName == name {
+				found = true
+				break
+			}
+		}
+	}
+	if !found {
+		m.mu.Unlock()
+		return fmt.Errorf("MCP server %q is not loaded", name)
+	}
+
+	// Remove tools belonging to this server.
+	newTools := make([]MCPTool, 0, len(m.tools))
+	for _, t := range m.tools {
+		if len(t.Name) < len(prefix) || t.Name[:len(prefix)] != prefix {
+			newTools = append(newTools, t)
+		}
+	}
+	m.tools = newTools
+
+	// Remove tool mappings.
+	for k := range m.toolMap {
+		if len(k) >= len(prefix) && k[:len(prefix)] == prefix {
+			delete(m.toolMap, k)
+		}
+	}
+
+	// Remove prompts belonging to this server.
+	newPrompts := make([]MCPPrompt, 0, len(m.prompts))
+	for _, p := range m.prompts {
+		if p.ServerName != name {
+			newPrompts = append(newPrompts, p)
+		}
+	}
+	m.prompts = newPrompts
+
+	// Remove resources belonging to this server.
+	newResources := make([]MCPResource, 0, len(m.resources))
+	for _, r := range m.resources {
+		if r.ServerName != name {
+			newResources = append(newResources, r)
+		} else {
+			// Clean up any active subscription for this resource.
+			delete(m.subscriptions, r.URI)
+		}
+	}
+	m.resources = newResources
+
+	m.mu.Unlock()
+
+	// Close the connection in the pool (best-effort).
+	if m.connectionPool != nil {
+		_ = m.connectionPool.RemoveConnection(name)
+	}
+
+	if m.onToolsChanged != nil {
+		m.onToolsChanged()
+	}
+
+	return nil
+}
+
+// ensureConnectionPool lazily creates a connection pool if one does not exist.
+// This allows AddServer to work even if LoadTools was never called.
+func (m *MCPToolManager) ensureConnectionPool() {
+	if m.connectionPool != nil {
+		return
+	}
+	debug := false
+	if m.config != nil {
+		debug = m.config.Debug
+	}
+	if m.debugLogger == nil {
+		m.debugLogger = NewSimpleDebugLogger(debug)
+	}
+	m.connectionPool = NewMCPConnectionPool(DefaultConnectionPoolConfig(), debug, m.authHandler, m.tokenStoreFactory)
+	m.connectionPool.SetDebugLogger(m.debugLogger)
+}
+
 // LoadTools loads tools from all configured MCP servers based on the provided configuration.
 // It initializes the connection pool, connects to each configured server, and loads their tools.
 // Tools from different servers are prefixed with the server name to avoid naming conflicts.
@@ -99,7 +376,7 @@ func (m *MCPToolManager) LoadTools(ctx context.Context, cfg *config.Config) erro
 	if m.debugLogger == nil {
 		m.debugLogger = NewSimpleDebugLogger(cfg.Debug)
 	}
-	m.connectionPool = NewMCPConnectionPool(DefaultConnectionPoolConfig(), m.model, cfg.Debug, m.authHandler)
+	m.connectionPool = NewMCPConnectionPool(DefaultConnectionPoolConfig(), cfg.Debug, m.authHandler, m.tokenStoreFactory)
 	m.connectionPool.SetDebugLogger(m.debugLogger)
 
 	// Load all servers in parallel. Each server connection (subprocess
@@ -181,10 +458,10 @@ func (m *MCPToolManager) loadServerTools(ctx context.Context, serverName string,
 	}
 
 	// Build tools locally before acquiring the lock.
-	var localTools []fantasy.AgentTool
+	var localTools []MCPTool
 	localMap := make(map[string]*toolMapping)
 
-	// Convert MCP tools to fantasy AgentTools with prefixed names
+	// Convert MCP tools to MCPTool structs with prefixed names
 	for _, mcpTool := range listResults.Tools {
 		// Filter tools based on allowedTools/excludedTools
 		if len(serverConfig.AllowedTools) > 0 {
@@ -198,7 +475,7 @@ func (m *MCPToolManager) loadServerTools(ctx context.Context, serverName string,
 			continue
 		}
 
-		// Convert MCP InputSchema to map[string]any for fantasy ToolInfo
+		// Convert MCP InputSchema to map[string]any
 		marshaledSchema, err := json.Marshal(mcpTool.InputSchema)
 		if err != nil {
 			return -1, fmt.Errorf("conv mcp tool input schema fail(marshal): %w, tool name: %s", err, mcpTool.Name)
@@ -207,7 +484,7 @@ func (m *MCPToolManager) loadServerTools(ctx context.Context, serverName string,
 		// Fix for JSON Schema draft-07 vs draft-04 compatibility
 		marshaledSchema = convertExclusiveBoundsToBoolean(marshaledSchema)
 
-		// Parse into map[string]any for fantasy's parameters format
+		// Parse into map[string]any
 		var schemaMap map[string]any
 		if err := json.Unmarshal(marshaledSchema, &schemaMap); err != nil {
 			return -1, fmt.Errorf("conv mcp tool input schema fail(unmarshal): %w, tool name: %s", err, mcpTool.Name)
@@ -223,7 +500,7 @@ func (m *MCPToolManager) loadServerTools(ctx context.Context, serverName string,
 
 		// Fix for issue #89: Ensure object schemas have a properties field.
 		// When schema type is "object" with no properties, we keep the
-		// empty parameters map — fantasy handles this fine.
+		// empty parameters map.
 
 		if req, ok := schemaMap["required"].([]any); ok {
 			for _, r := range req {
@@ -241,22 +518,18 @@ func (m *MCPToolManager) loadServerTools(ctx context.Context, serverName string,
 			serverName:   serverName,
 			originalName: mcpTool.Name,
 			serverConfig: serverConfig,
-			manager:      m,
 		}
 		localMap[prefixedName] = mapping
 
-		// Create fantasy AgentTool
-		fantasyTool := &mcpFantasyTool{
-			toolInfo: fantasy.ToolInfo{
-				Name:        prefixedName,
-				Description: mcpTool.Description,
-				Parameters:  parameters,
-				Required:    required,
-			},
-			mapping: mapping,
-		}
-
-		localTools = append(localTools, fantasyTool)
+		// Create MCPTool
+		localTools = append(localTools, MCPTool{
+			Name:         prefixedName,
+			Description:  mcpTool.Description,
+			Parameters:   parameters,
+			Required:     required,
+			ServerName:   serverName,
+			OriginalName: mcpTool.Name,
+		})
 	}
 
 	// Merge into the manager under the lock.
@@ -265,15 +538,516 @@ func (m *MCPToolManager) loadServerTools(ctx context.Context, serverName string,
 	m.tools = append(m.tools, localTools...)
 	m.mu.Unlock()
 
+	// Also load prompts from this server (best-effort, non-blocking).
+	m.loadServerPrompts(ctx, serverName, conn)
+
+	// Also load resources from this server (best-effort, non-blocking).
+	m.loadServerResources(ctx, serverName, conn)
+
 	return len(localTools), nil
 }
 
-// GetTools returns all loaded tools as fantasy AgentTools from all configured MCP servers.
+// ExecuteTool calls an MCP tool through the connection pool, handling health
+// checks, OAuth re-authorization, and connection error tracking.
+// The inputJSON parameter is the raw JSON arguments from the LLM.
+// Returns the result content, error flag, and any execution error.
+func (m *MCPToolManager) ExecuteTool(ctx context.Context, prefixedName, inputJSON string) (*MCPToolResult, error) {
+	m.mu.Lock()
+	mapping, ok := m.toolMap[prefixedName]
+	m.mu.Unlock()
+	if !ok {
+		return nil, fmt.Errorf("tool %q not found", prefixedName)
+	}
+
+	// Parse and validate JSON arguments
+	var arguments any
+	if inputJSON == "" || inputJSON == "{}" {
+		arguments = nil
+	} else {
+		var temp any
+		if err := json.Unmarshal([]byte(inputJSON), &temp); err != nil {
+			return &MCPToolResult{
+				Content: fmt.Sprintf("invalid JSON arguments: %v", err),
+				IsError: true,
+			}, nil
+		}
+		arguments = json.RawMessage(inputJSON)
+	}
+
+	// Get connection from pool with health check
+	conn, err := m.connectionPool.GetConnectionWithHealthCheck(
+		ctx, mapping.serverName, mapping.serverConfig,
+	)
+	if err != nil {
+		return nil, fmt.Errorf("failed to get healthy connection from pool: %w", err)
+	}
+
+	callRequest := mcp.CallToolRequest{
+		Request: mcp.Request{
+			Method: "tools/call",
+		},
+		Params: mcp.CallToolParams{
+			Name:      mapping.originalName,
+			Arguments: arguments,
+		},
+	}
+
+	// Call the MCP tool using the original (unprefixed) name
+	result, err := conn.client.CallTool(ctx, callRequest)
+	if err != nil {
+		// Handle OAuth re-authorization: token may have expired mid-session.
+		if m.connectionPool.oauthFlow != nil && IsOAuthError(err) {
+			if flowErr := m.connectionPool.oauthFlow.RunAuthFlow(ctx, mapping.serverName, err); flowErr != nil {
+				return nil, fmt.Errorf("OAuth re-authorization failed for tool %s: %w", mapping.originalName, flowErr)
+			}
+			// Retry the tool call after successful re-auth.
+			result, err = conn.client.CallTool(ctx, callRequest)
+			if err != nil {
+				m.connectionPool.HandleConnectionError(mapping.serverName, err)
+				return nil, fmt.Errorf("failed to call mcp tool after re-auth: %w", err)
+			}
+		} else {
+			// Mark connection as unhealthy for automatic recovery
+			m.connectionPool.HandleConnectionError(mapping.serverName, err)
+			return nil, fmt.Errorf("failed to call mcp tool: %w", err)
+		}
+	}
+
+	// Marshal the MCP result to JSON string
+	marshaledResult, err := json.Marshal(result)
+	if err != nil {
+		return nil, fmt.Errorf("failed to marshal mcp tool result: %w", err)
+	}
+
+	return &MCPToolResult{
+		Content: string(marshaledResult),
+		IsError: result.IsError,
+	}, nil
+}
+
+// GetTools returns all loaded MCP tools from all configured MCP servers.
 // Tools are returned with their prefixed names (serverName__toolName) to ensure uniqueness.
-func (m *MCPToolManager) GetTools() []fantasy.AgentTool {
+func (m *MCPToolManager) GetTools() []MCPTool {
 	return m.tools
 }
 
+// GetPrompts returns all prompts discovered from connected MCP servers.
+func (m *MCPToolManager) GetPrompts() []MCPPrompt {
+	m.mu.Lock()
+	defer m.mu.Unlock()
+	result := make([]MCPPrompt, len(m.prompts))
+	copy(result, m.prompts)
+	return result
+}
+
+// GetPrompt retrieves and expands a specific prompt from an MCP server.
+// The serverName identifies which server to query, promptName is the prompt's
+// name on that server, and args are the template arguments to substitute.
+// This call is lazy — it contacts the MCP server on each invocation.
+func (m *MCPToolManager) GetPrompt(ctx context.Context, serverName, promptName string, args map[string]string) (*MCPPromptResult, error) {
+	if m.connectionPool == nil {
+		return nil, fmt.Errorf("no connection pool available")
+	}
+
+	clients := m.connectionPool.GetClients()
+	mcpClient, ok := clients[serverName]
+	if !ok {
+		return nil, fmt.Errorf("MCP server %q not found", serverName)
+	}
+
+	req := mcp.GetPromptRequest{}
+	req.Params.Name = promptName
+	if len(args) > 0 {
+		req.Params.Arguments = args
+	}
+
+	result, err := mcpClient.GetPrompt(ctx, req)
+	if err != nil {
+		return nil, fmt.Errorf("failed to get prompt %q from server %q: %w", promptName, serverName, err)
+	}
+
+	// Convert MCP messages to our types, extracting all content types.
+	var messages []MCPPromptMessage
+	for _, msg := range result.Messages {
+		text, fileParts := extractPromptContent(msg.Content)
+		if text != "" || len(fileParts) > 0 {
+			messages = append(messages, MCPPromptMessage{
+				Role:      string(msg.Role),
+				Content:   text,
+				FileParts: fileParts,
+			})
+		}
+	}
+
+	return &MCPPromptResult{
+		Description: result.Description,
+		Messages:    messages,
+	}, nil
+}
+
+// extractPromptContent extracts text and binary attachments from an MCP Content value.
+// Handles all MCP content types: TextContent, ImageContent, AudioContent,
+// EmbeddedResource (text and blob), and ResourceLink.
+func extractPromptContent(content mcp.Content) (string, []MCPFilePart) {
+	switch c := content.(type) {
+	case mcp.TextContent:
+		return c.Text, nil
+	case *mcp.TextContent:
+		if c != nil {
+			return c.Text, nil
+		}
+		return "", nil
+
+	case mcp.ImageContent:
+		return "", decodeBase64FilePart(c.Data, c.MIMEType, "image/png", "image.png")
+	case *mcp.ImageContent:
+		if c != nil {
+			return "", decodeBase64FilePart(c.Data, c.MIMEType, "image/png", "image.png")
+		}
+		return "", nil
+
+	case mcp.AudioContent:
+		return "", decodeBase64FilePart(c.Data, c.MIMEType, "audio/wav", "audio.wav")
+	case *mcp.AudioContent:
+		if c != nil {
+			return "", decodeBase64FilePart(c.Data, c.MIMEType, "audio/wav", "audio.wav")
+		}
+		return "", nil
+
+	case mcp.EmbeddedResource:
+		return extractEmbeddedResourceContent(c.Resource)
+	case *mcp.EmbeddedResource:
+		if c != nil {
+			return extractEmbeddedResourceContent(c.Resource)
+		}
+		return "", nil
+
+	case mcp.ResourceLink:
+		// ResourceLink is a reference without inline content — include as a
+		// text annotation so the LLM knows about it.
+		return fmt.Sprintf("[Referenced resource: %s (%s)]", c.URI, c.Name), nil
+	case *mcp.ResourceLink:
+		if c != nil {
+			return fmt.Sprintf("[Referenced resource: %s (%s)]", c.URI, c.Name), nil
+		}
+		return "", nil
+
+	default:
+		return "", nil
+	}
+}
+
+// extractEmbeddedResourceContent handles the two variants of embedded resource
+// content: text resources are inlined as fenced code blocks, blob resources
+// are base64-decoded into MCPFilePart attachments.
+func extractEmbeddedResourceContent(res mcp.ResourceContents) (string, []MCPFilePart) {
+	switch r := res.(type) {
+	case mcp.TextResourceContents:
+		return fmt.Sprintf("[File: %s]\n```\n%s\n```", r.URI, r.Text), nil
+	case *mcp.TextResourceContents:
+		if r != nil {
+			return fmt.Sprintf("[File: %s]\n```\n%s\n```", r.URI, r.Text), nil
+		}
+		return "", nil
+	case mcp.BlobResourceContents:
+		return "", decodeBase64FilePart(r.Blob, r.MIMEType, "application/octet-stream", filenameFromURI(r.URI))
+	case *mcp.BlobResourceContents:
+		if r != nil {
+			return "", decodeBase64FilePart(r.Blob, r.MIMEType, "application/octet-stream", filenameFromURI(r.URI))
+		}
+		return "", nil
+	default:
+		return "", nil
+	}
+}
+
+// decodeBase64FilePart decodes base64-encoded data into an MCPFilePart.
+// Returns nil on decode failure (logged as a warning).
+func decodeBase64FilePart(data, mimeType, defaultMIME, filename string) []MCPFilePart {
+	decoded, err := base64.StdEncoding.DecodeString(data)
+	if err != nil {
+		log.Warn("mcp prompt: failed to decode base64 content", "filename", filename, "error", err)
+		return nil
+	}
+	if mimeType == "" {
+		mimeType = defaultMIME
+	}
+	return []MCPFilePart{{
+		Filename:  filename,
+		Data:      decoded,
+		MediaType: mimeType,
+	}}
+}
+
+// filenameFromURI extracts a filename from a URI (e.g. "file:///path/to/img.png" → "img.png").
+func filenameFromURI(uri string) string {
+	uri = strings.TrimPrefix(uri, "file://")
+	if idx := strings.LastIndex(uri, "/"); idx >= 0 {
+		return uri[idx+1:]
+	}
+	if uri == "" {
+		return "resource"
+	}
+	return uri
+}
+
+// loadServerPrompts loads prompts from a single MCP server connection.
+// Called inside loadServerTools after a successful connection is established.
+// Thread-safe: acquires m.mu to merge results.
+func (m *MCPToolManager) loadServerPrompts(ctx context.Context, serverName string, conn *MCPConnection) {
+	listResult, err := conn.client.ListPrompts(ctx, mcp.ListPromptsRequest{})
+	if err != nil {
+		// Prompts are optional — servers may not support them.
+		// Silently skip.
+		return
+	}
+
+	if len(listResult.Prompts) == 0 {
+		return
+	}
+
+	var localPrompts []MCPPrompt
+	for _, p := range listResult.Prompts {
+		var args []MCPPromptArgument
+		for _, a := range p.Arguments {
+			args = append(args, MCPPromptArgument{
+				Name:        a.Name,
+				Description: a.Description,
+				Required:    a.Required,
+			})
+		}
+		localPrompts = append(localPrompts, MCPPrompt{
+			Name:        p.Name,
+			Description: p.Description,
+			Arguments:   args,
+			ServerName:  serverName,
+		})
+	}
+
+	m.mu.Lock()
+	m.prompts = append(m.prompts, localPrompts...)
+	m.mu.Unlock()
+}
+
+// loadServerResources loads resources from a single MCP server connection.
+// Called inside loadServerTools after a successful connection is established.
+// Thread-safe: acquires m.mu to merge results.
+func (m *MCPToolManager) loadServerResources(ctx context.Context, serverName string, conn *MCPConnection) {
+	listResult, err := conn.client.ListResources(ctx, mcp.ListResourcesRequest{})
+	if err != nil {
+		// Resources are optional — servers may not support them.
+		return
+	}
+
+	if len(listResult.Resources) == 0 {
+		return
+	}
+
+	var localResources []MCPResource
+	for _, r := range listResult.Resources {
+		localResources = append(localResources, MCPResource{
+			URI:         r.URI,
+			Name:        r.Name,
+			Description: r.Description,
+			MIMEType:    r.MIMEType,
+			ServerName:  serverName,
+		})
+	}
+
+	m.mu.Lock()
+	m.resources = append(m.resources, localResources...)
+	m.mu.Unlock()
+}
+
+// GetResources returns all resources discovered from connected MCP servers.
+func (m *MCPToolManager) GetResources() []MCPResource {
+	m.mu.Lock()
+	defer m.mu.Unlock()
+	result := make([]MCPResource, len(m.resources))
+	copy(result, m.resources)
+	return result
+}
+
+// SetOnResourcesChanged sets the callback invoked when a subscribed resource
+// changes. Used by the UI layer to refresh autocomplete or re-read content.
+func (m *MCPToolManager) SetOnResourcesChanged(cb func()) {
+	m.onResourcesChanged = cb
+}
+
+// ReadResource reads a specific resource from an MCP server by URI.
+// Returns the resource content (text or binary blob).
+func (m *MCPToolManager) ReadResource(ctx context.Context, serverName, uri string) (*MCPResourceContent, error) {
+	if m.connectionPool == nil {
+		return nil, fmt.Errorf("no connection pool available")
+	}
+
+	clients := m.connectionPool.GetClients()
+	mcpClient, ok := clients[serverName]
+	if !ok {
+		return nil, fmt.Errorf("MCP server %q not found", serverName)
+	}
+
+	req := mcp.ReadResourceRequest{}
+	req.Params.URI = uri
+
+	result, err := mcpClient.ReadResource(ctx, req)
+	if err != nil {
+		return nil, fmt.Errorf("failed to read resource %q from server %q: %w", uri, serverName, err)
+	}
+
+	if len(result.Contents) == 0 {
+		return nil, fmt.Errorf("resource %q returned no content", uri)
+	}
+
+	// Process the first content item (most resources return exactly one).
+	content := result.Contents[0]
+	switch c := content.(type) {
+	case mcp.TextResourceContents:
+		return &MCPResourceContent{
+			URI:      c.URI,
+			MIMEType: c.MIMEType,
+			Text:     c.Text,
+			IsBlob:   false,
+		}, nil
+	case *mcp.TextResourceContents:
+		if c == nil {
+			return nil, fmt.Errorf("resource %q returned nil text content", uri)
+		}
+		return &MCPResourceContent{
+			URI:      c.URI,
+			MIMEType: c.MIMEType,
+			Text:     c.Text,
+			IsBlob:   false,
+		}, nil
+	case mcp.BlobResourceContents:
+		decoded, err := base64.StdEncoding.DecodeString(c.Blob)
+		if err != nil {
+			return nil, fmt.Errorf("failed to decode blob resource %q: %w", uri, err)
+		}
+		return &MCPResourceContent{
+			URI:      c.URI,
+			MIMEType: c.MIMEType,
+			BlobData: decoded,
+			IsBlob:   true,
+		}, nil
+	case *mcp.BlobResourceContents:
+		if c == nil {
+			return nil, fmt.Errorf("resource %q returned nil blob content", uri)
+		}
+		decoded, err := base64.StdEncoding.DecodeString(c.Blob)
+		if err != nil {
+			return nil, fmt.Errorf("failed to decode blob resource %q: %w", uri, err)
+		}
+		return &MCPResourceContent{
+			URI:      c.URI,
+			MIMEType: c.MIMEType,
+			BlobData: decoded,
+			IsBlob:   true,
+		}, nil
+	default:
+		return nil, fmt.Errorf("resource %q returned unknown content type %T", uri, content)
+	}
+}
+
+// SubscribeResource subscribes to change notifications for a resource.
+// When the resource changes on the server, onResourcesChanged is called
+// and the resource list is refreshed automatically.
+func (m *MCPToolManager) SubscribeResource(ctx context.Context, serverName, uri string) error {
+	if m.connectionPool == nil {
+		return fmt.Errorf("no connection pool available")
+	}
+
+	clients := m.connectionPool.GetClients()
+	mcpClient, ok := clients[serverName]
+	if !ok {
+		return fmt.Errorf("MCP server %q not found", serverName)
+	}
+
+	req := mcp.SubscribeRequest{}
+	req.Params.URI = uri
+
+	if err := mcpClient.Subscribe(ctx, req); err != nil {
+		return fmt.Errorf("failed to subscribe to resource %q on server %q: %w", uri, serverName, err)
+	}
+
+	m.mu.Lock()
+	m.subscriptions[uri] = serverName
+	m.mu.Unlock()
+
+	return nil
+}
+
+// UnsubscribeResource cancels change notifications for a resource.
+func (m *MCPToolManager) UnsubscribeResource(ctx context.Context, serverName, uri string) error {
+	if m.connectionPool == nil {
+		return fmt.Errorf("no connection pool available")
+	}
+
+	clients := m.connectionPool.GetClients()
+	mcpClient, ok := clients[serverName]
+	if !ok {
+		return fmt.Errorf("MCP server %q not found", serverName)
+	}
+
+	req := mcp.UnsubscribeRequest{}
+	req.Params.URI = uri
+
+	if err := mcpClient.Unsubscribe(ctx, req); err != nil {
+		return fmt.Errorf("failed to unsubscribe from resource %q on server %q: %w", uri, serverName, err)
+	}
+
+	m.mu.Lock()
+	delete(m.subscriptions, uri)
+	m.mu.Unlock()
+
+	return nil
+}
+
+// RefreshServerResources re-fetches resources from a specific server.
+// Called when a resource change notification is received.
+func (m *MCPToolManager) RefreshServerResources(ctx context.Context, serverName string) {
+	if m.connectionPool == nil {
+		return
+	}
+
+	clients := m.connectionPool.GetClients()
+	mcpClient, ok := clients[serverName]
+	if !ok {
+		return
+	}
+
+	listResult, err := mcpClient.ListResources(ctx, mcp.ListResourcesRequest{})
+	if err != nil {
+		return
+	}
+
+	var newResources []MCPResource
+	for _, r := range listResult.Resources {
+		newResources = append(newResources, MCPResource{
+			URI:         r.URI,
+			Name:        r.Name,
+			Description: r.Description,
+			MIMEType:    r.MIMEType,
+			ServerName:  serverName,
+		})
+	}
+
+	m.mu.Lock()
+	// Remove old resources from this server, add new ones.
+	filtered := make([]MCPResource, 0, len(m.resources))
+	for _, r := range m.resources {
+		if r.ServerName != serverName {
+			filtered = append(filtered, r)
+		}
+	}
+	m.resources = append(filtered, newResources...)
+	m.mu.Unlock()
+
+	if m.onResourcesChanged != nil {
+		m.onResourcesChanged()
+	}
+}
+
 // GetLoadedServerNames returns the names of all successfully loaded MCP servers.
 // This includes servers that are currently connected and have had their tools loaded,
 // regardless of their current health status. Useful for debugging and status reporting.
@@ -290,6 +1064,9 @@ func (m *MCPToolManager) GetLoadedServerNames() []string {
 // proper cleanup of stdio processes, network connections, and other resources.
 // It is safe to call Close multiple times.
 func (m *MCPToolManager) Close() error {
+	if m.connectionPool == nil {
+		return nil
+	}
 	return m.connectionPool.Close()
 }
 

internal/tools/mcp_dynamic_integration_test.go

@@ -0,0 +1,323 @@
+package tools
+
+import (
+	"context"
+	"os"
+	"path/filepath"
+	"runtime"
+	"slices"
+	"strings"
+	"sync"
+	"testing"
+	"time"
+
+	"github.com/mark3labs/kit/internal/config"
+)
+
+// testdataDir returns the absolute path to the testdata directory.
+func testdataDir(t *testing.T) string {
+	t.Helper()
+	_, file, _, ok := runtime.Caller(0)
+	if !ok {
+		t.Fatal("cannot determine test file path")
+	}
+	return filepath.Join(filepath.Dir(file), "testdata")
+}
+
+// echoServerConfig returns an MCPServerConfig for the test echo MCP server.
+func echoServerConfig(t *testing.T) config.MCPServerConfig {
+	t.Helper()
+	script := filepath.Join(testdataDir(t), "echo_server.py")
+	if _, err := os.Stat(script); err != nil {
+		t.Skipf("echo_server.py not found: %v", err)
+	}
+	return config.MCPServerConfig{
+		Command: []string{"python3", script},
+	}
+}
+
+// TestMCPToolManager_AddServer_Integration tests adding a real MCP server
+// at runtime and verifying tools are loaded.
+func TestMCPToolManager_AddServer_Integration(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	manager := NewMCPToolManager()
+	defer func() { _ = manager.Close() }()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+
+	// Track callbacks.
+	var mu sync.Mutex
+	var loadedServer string
+	var loadedCount int
+	toolsChangedCount := 0
+
+	manager.SetOnServerLoaded(func(name string, count int, err error) {
+		mu.Lock()
+		loadedServer = name
+		loadedCount = count
+		mu.Unlock()
+	})
+	manager.SetOnToolsChanged(func() {
+		mu.Lock()
+		toolsChangedCount++
+		mu.Unlock()
+	})
+
+	// Add the server.
+	count, err := manager.AddServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("AddServer failed: %v", err)
+	}
+
+	if count != 2 {
+		t.Errorf("Expected 2 tools from echo server, got %d", count)
+	}
+
+	// Verify callbacks fired.
+	mu.Lock()
+	if loadedServer != "echo" {
+		t.Errorf("Expected onServerLoaded for 'echo', got %q", loadedServer)
+	}
+	if loadedCount != 2 {
+		t.Errorf("Expected onServerLoaded count=2, got %d", loadedCount)
+	}
+	if toolsChangedCount != 1 {
+		t.Errorf("Expected onToolsChanged called once, got %d", toolsChangedCount)
+	}
+	mu.Unlock()
+
+	// Verify tools are accessible.
+	tools := manager.GetTools()
+	if len(tools) != 2 {
+		t.Fatalf("Expected 2 tools, got %d", len(tools))
+	}
+
+	// Verify tool names are prefixed.
+	toolNames := make(map[string]bool)
+	for _, tool := range tools {
+		toolNames[tool.Name] = true
+	}
+	if !toolNames["echo__echo"] {
+		t.Error("Expected tool 'echo__echo'")
+	}
+	if !toolNames["echo__greet"] {
+		t.Error("Expected tool 'echo__greet'")
+	}
+
+	// Verify server appears in loaded names.
+	names := manager.GetLoadedServerNames()
+	if !slices.Contains(names, "echo") {
+		t.Errorf("Expected 'echo' in loaded server names, got: %v", names)
+	}
+}
+
+// TestMCPToolManager_RemoveServer_Integration tests removing a real MCP server
+// and verifying tools are cleaned up.
+func TestMCPToolManager_RemoveServer_Integration(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	manager := NewMCPToolManager()
+	defer func() { _ = manager.Close() }()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+
+	// Add the server first.
+	count, err := manager.AddServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("AddServer failed: %v", err)
+	}
+	if count != 2 {
+		t.Fatalf("Expected 2 tools, got %d", count)
+	}
+
+	var mu sync.Mutex
+	toolsChangedCount := 0
+	manager.SetOnToolsChanged(func() {
+		mu.Lock()
+		toolsChangedCount++
+		mu.Unlock()
+	})
+
+	// Remove the server.
+	err = manager.RemoveServer("echo")
+	if err != nil {
+		t.Fatalf("RemoveServer failed: %v", err)
+	}
+
+	// Verify tools are gone.
+	tools := manager.GetTools()
+	if len(tools) != 0 {
+		t.Errorf("Expected 0 tools after removal, got %d", len(tools))
+	}
+
+	// Verify callback fired.
+	mu.Lock()
+	if toolsChangedCount != 1 {
+		t.Errorf("Expected onToolsChanged called once, got %d", toolsChangedCount)
+	}
+	mu.Unlock()
+
+	// Verify server is gone from loaded names.
+	names := manager.GetLoadedServerNames()
+	for _, n := range names {
+		if n == "echo" {
+			t.Error("Server 'echo' should not appear in loaded names after removal")
+		}
+	}
+
+	// Removing again should error.
+	err = manager.RemoveServer("echo")
+	if err == nil {
+		t.Fatal("Expected error removing already-removed server")
+	}
+	if !strings.Contains(err.Error(), "not loaded") {
+		t.Errorf("Expected 'not loaded' error, got: %v", err)
+	}
+}
+
+// TestMCPToolManager_AddRemoveMultiple_Integration tests adding and removing
+// multiple servers, verifying tool isolation.
+func TestMCPToolManager_AddRemoveMultiple_Integration(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	manager := NewMCPToolManager()
+	defer func() { _ = manager.Close() }()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+
+	// Add two servers with the same binary but different names.
+	count1, err := manager.AddServer(ctx, "server-a", cfg)
+	if err != nil {
+		t.Fatalf("AddServer server-a failed: %v", err)
+	}
+	count2, err := manager.AddServer(ctx, "server-b", cfg)
+	if err != nil {
+		t.Fatalf("AddServer server-b failed: %v", err)
+	}
+
+	totalTools := count1 + count2
+	if totalTools != 4 {
+		t.Fatalf("Expected 4 total tools (2+2), got %d", totalTools)
+	}
+
+	tools := manager.GetTools()
+	if len(tools) != 4 {
+		t.Fatalf("Expected 4 tools, got %d", len(tools))
+	}
+
+	// Remove server-a, verify server-b tools remain.
+	err = manager.RemoveServer("server-a")
+	if err != nil {
+		t.Fatalf("RemoveServer server-a failed: %v", err)
+	}
+
+	tools = manager.GetTools()
+	if len(tools) != 2 {
+		t.Fatalf("Expected 2 tools after removing server-a, got %d", len(tools))
+	}
+
+	// Remaining tools should all be from server-b.
+	for _, tool := range tools {
+		if !strings.HasPrefix(tool.Name, "server-b__") {
+			t.Errorf("Expected tool from server-b, got: %s", tool.Name)
+		}
+	}
+
+	// Remove server-b.
+	err = manager.RemoveServer("server-b")
+	if err != nil {
+		t.Fatalf("RemoveServer server-b failed: %v", err)
+	}
+
+	tools = manager.GetTools()
+	if len(tools) != 0 {
+		t.Errorf("Expected 0 tools after removing all servers, got %d", len(tools))
+	}
+}
+
+// TestMCPToolManager_AddServer_DuplicateDetection_Integration tests that
+// adding a server with the same name as an already loaded server errors.
+func TestMCPToolManager_AddServer_DuplicateDetection_Integration(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	manager := NewMCPToolManager()
+	defer func() { _ = manager.Close() }()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+
+	// Add the server.
+	_, err := manager.AddServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("First AddServer failed: %v", err)
+	}
+
+	// Try to add again with the same name.
+	_, err = manager.AddServer(ctx, "echo", cfg)
+	if err == nil {
+		t.Fatal("Expected error adding duplicate server")
+	}
+	if !strings.Contains(err.Error(), "already loaded") {
+		t.Errorf("Expected 'already loaded' error, got: %v", err)
+	}
+}
+
+// TestMCPToolManager_AddAfterRemove_Integration tests that a server can be
+// re-added after being removed.
+func TestMCPToolManager_AddAfterRemove_Integration(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test in short mode")
+	}
+
+	manager := NewMCPToolManager()
+	defer func() { _ = manager.Close() }()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	cfg := echoServerConfig(t)
+
+	// Add, remove, re-add.
+	_, err := manager.AddServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("First AddServer failed: %v", err)
+	}
+
+	err = manager.RemoveServer("echo")
+	if err != nil {
+		t.Fatalf("RemoveServer failed: %v", err)
+	}
+
+	count, err := manager.AddServer(ctx, "echo", cfg)
+	if err != nil {
+		t.Fatalf("Re-AddServer failed: %v", err)
+	}
+	if count != 2 {
+		t.Errorf("Expected 2 tools on re-add, got %d", count)
+	}
+
+	tools := manager.GetTools()
+	if len(tools) != 2 {
+		t.Errorf("Expected 2 tools after re-add, got %d", len(tools))
+	}
+}

internal/tools/mcp_dynamic_test.go

@@ -0,0 +1,155 @@
+package tools
+
+import (
+	"context"
+	"strings"
+	"sync"
+	"testing"
+	"time"
+
+	"github.com/mark3labs/kit/internal/config"
+)
+
+// TestMCPToolManager_AddServer_DuplicateName verifies that adding a server
+// with a name that already exists returns an error.
+func TestMCPToolManager_AddServer_DuplicateName(t *testing.T) {
+	manager := NewMCPToolManager()
+
+	cfg := config.MCPServerConfig{
+		Command: []string{"non-existent-command"},
+	}
+
+	ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	defer cancel()
+
+	// First add will fail (bad command), but let's test the duplicate detection
+	// by simulating a loaded server via LoadTools first.
+	loadCfg := &config.Config{
+		MCPServers: map[string]config.MCPServerConfig{
+			"test-server": cfg,
+		},
+	}
+	// This will fail to load but creates the connection pool.
+	_ = manager.LoadTools(ctx, loadCfg)
+
+	// Now try to add the same server name — the tools didn't load (bad command),
+	// so AddServer should not find a duplicate and should fail with connection error.
+	_, err := manager.AddServer(ctx, "test-server", cfg)
+	if err == nil {
+		t.Fatal("Expected error when adding server with bad command, got nil")
+	}
+	// It should be a connection error, not a duplicate error.
+	if strings.Contains(err.Error(), "already loaded") {
+		t.Fatalf("Should not report duplicate since server failed to load initially: %v", err)
+	}
+}
+
+// TestMCPToolManager_RemoveServer_NotLoaded verifies that removing a server
+// that doesn't exist returns an appropriate error.
+func TestMCPToolManager_RemoveServer_NotLoaded(t *testing.T) {
+	manager := NewMCPToolManager()
+
+	err := manager.RemoveServer("nonexistent")
+	if err == nil {
+		t.Fatal("Expected error when removing non-existent server, got nil")
+	}
+	if !strings.Contains(err.Error(), "not loaded") {
+		t.Errorf("Expected 'not loaded' error, got: %v", err)
+	}
+}
+
+// TestMCPToolManager_AddServer_CreatesConnectionPool verifies that AddServer
+// lazily creates a connection pool when LoadTools was never called.
+func TestMCPToolManager_AddServer_CreatesConnectionPool(t *testing.T) {
+	manager := NewMCPToolManager()
+
+	// Connection pool should be nil initially.
+	if manager.connectionPool != nil {
+		t.Fatal("Expected nil connection pool before any operation")
+	}
+
+	ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	defer cancel()
+
+	// AddServer with a bad command — should fail, but the pool should be created.
+	_, err := manager.AddServer(ctx, "lazy-server", config.MCPServerConfig{
+		Command: []string{"non-existent-command"},
+	})
+	if err == nil {
+		t.Fatal("Expected error for bad command")
+	}
+
+	// Connection pool should have been created.
+	if manager.connectionPool == nil {
+		t.Fatal("Expected connection pool to be created lazily by AddServer")
+	}
+}
+
+// TestMCPToolManager_OnToolsChanged_Callback verifies that the onToolsChanged
+// callback fires on RemoveServer (we can't easily test AddServer with a real
+// MCP server, but we can test the callback wiring).
+func TestMCPToolManager_OnToolsChanged_Callback(t *testing.T) {
+	manager := NewMCPToolManager()
+
+	var mu sync.Mutex
+	callCount := 0
+	manager.SetOnToolsChanged(func() {
+		mu.Lock()
+		callCount++
+		mu.Unlock()
+	})
+
+	// RemoveServer on non-existent should NOT fire callback.
+	_ = manager.RemoveServer("nonexistent")
+
+	mu.Lock()
+	if callCount != 0 {
+		t.Errorf("Expected 0 callback calls for failed remove, got %d", callCount)
+	}
+	mu.Unlock()
+}
+
+// TestMCPToolManager_Close_NilPool verifies Close is safe when the connection
+// pool was never initialized.
+func TestMCPToolManager_Close_NilPool(t *testing.T) {
+	manager := NewMCPToolManager()
+	err := manager.Close()
+	if err != nil {
+		t.Fatalf("Expected nil error from Close with nil pool, got: %v", err)
+	}
+}
+
+// TestMCPConnectionPool_RemoveConnection_NotFound verifies that removing a
+// non-existent connection returns an error.
+func TestMCPConnectionPool_RemoveConnection_NotFound(t *testing.T) {
+	pool := NewMCPConnectionPool(DefaultConnectionPoolConfig(), false, nil, nil)
+	defer func() { _ = pool.Close() }()
+
+	err := pool.RemoveConnection("nonexistent")
+	if err == nil {
+		t.Fatal("Expected error for non-existent connection")
+	}
+	if !strings.Contains(err.Error(), "not found") {
+		t.Errorf("Expected 'not found' error, got: %v", err)
+	}
+}
+
+// TestMCPToolManager_EnsureConnectionPool_Idempotent verifies that
+// ensureConnectionPool doesn't recreate an existing pool.
+func TestMCPToolManager_EnsureConnectionPool_Idempotent(t *testing.T) {
+	manager := NewMCPToolManager()
+
+	// First call creates the pool.
+	manager.ensureConnectionPool()
+	pool1 := manager.connectionPool
+	if pool1 == nil {
+		t.Fatal("Expected pool to be created")
+	}
+
+	// Second call should be a no-op.
+	manager.ensureConnectionPool()
+	pool2 := manager.connectionPool
+	if pool1 != pool2 {
+		t.Fatal("Expected ensureConnectionPool to be idempotent")
+	}
+}

internal/tools/mcp_prompts_test.go

@@ -0,0 +1,691 @@
+package tools
+
+import (
+	"context"
+	"encoding/base64"
+	"fmt"
+	"strings"
+	"testing"
+
+	mcpclient "github.com/mark3labs/mcp-go/client"
+	"github.com/mark3labs/mcp-go/mcp"
+	"github.com/mark3labs/mcp-go/server"
+)
+
+// newTestPromptServer creates an in-process MCP server with prompt capabilities
+// and the specified prompts + handlers. Returns an initialized MCPClient.
+func newTestPromptServer(t *testing.T, prompts ...server.ServerPrompt) mcpclient.MCPClient {
+	t.Helper()
+
+	mcpServer := server.NewMCPServer(
+		"test-prompt-server", "1.0.0",
+		server.WithPromptCapabilities(true),
+		server.WithToolCapabilities(true),
+	)
+
+	if len(prompts) > 0 {
+		mcpServer.AddPrompts(prompts...)
+	}
+
+	// Add a dummy tool so loadServerTools has something to list.
+	mcpServer.AddTool(
+		mcp.NewTool("noop", mcp.WithDescription("no-op tool")),
+		func(ctx context.Context, req mcp.CallToolRequest) (*mcp.CallToolResult, error) {
+			return mcp.NewToolResultText("ok"), nil
+		},
+	)
+
+	client, err := mcpclient.NewInProcessClient(mcpServer)
+	if err != nil {
+		t.Fatalf("NewInProcessClient: %v", err)
+	}
+
+	ctx := context.Background()
+	if err := client.Start(ctx); err != nil {
+		t.Fatalf("client.Start: %v", err)
+	}
+
+	initReq := mcp.InitializeRequest{}
+	initReq.Params.ProtocolVersion = mcp.LATEST_PROTOCOL_VERSION
+	initReq.Params.ClientInfo = mcp.Implementation{Name: "test", Version: "1.0"}
+	if _, err := client.Initialize(ctx, initReq); err != nil {
+		t.Fatalf("client.Initialize: %v", err)
+	}
+
+	t.Cleanup(func() { _ = client.Close() })
+	return client
+}
+
+// injectClientIntoManager sets up an MCPToolManager with a pre-connected
+// in-process client, bypassing the normal connection pool flow.
+func injectClientIntoManager(t *testing.T, serverName string, client mcpclient.MCPClient) *MCPToolManager {
+	t.Helper()
+
+	m := NewMCPToolManager()
+
+	// Create a minimal connection pool and inject our client.
+	pool := NewMCPConnectionPool(DefaultConnectionPoolConfig(), false, nil, nil)
+	pool.mu.Lock()
+	pool.connections[serverName] = &MCPConnection{
+		client:     client,
+		serverName: serverName,
+		isHealthy:  true,
+	}
+	pool.mu.Unlock()
+	m.connectionPool = pool
+
+	return m
+}
+
+func TestLoadServerPrompts_Basic(t *testing.T) {
+	ctx := context.Background()
+
+	client := newTestPromptServer(t,
+		server.ServerPrompt{
+			Prompt: mcp.NewPrompt("review-pr",
+				mcp.WithPromptDescription("Review a pull request"),
+				mcp.WithArgument("pr_number",
+					mcp.ArgumentDescription("The PR number to review"),
+					mcp.RequiredArgument(),
+				),
+				mcp.WithArgument("focus",
+					mcp.ArgumentDescription("Area to focus on"),
+				),
+			),
+			Handler: func(ctx context.Context, req mcp.GetPromptRequest) (*mcp.GetPromptResult, error) {
+				prNum := req.Params.Arguments["pr_number"]
+				return &mcp.GetPromptResult{
+					Description: "PR review prompt",
+					Messages: []mcp.PromptMessage{
+						{
+							Role: mcp.RoleUser,
+							Content: mcp.TextContent{
+								Type: "text",
+								Text: fmt.Sprintf("Please review PR #%s", prNum),
+							},
+						},
+					},
+				}, nil
+			},
+		},
+		server.ServerPrompt{
+			Prompt: mcp.NewPrompt("explain-code",
+				mcp.WithPromptDescription("Explain a piece of code"),
+			),
+			Handler: func(ctx context.Context, req mcp.GetPromptRequest) (*mcp.GetPromptResult, error) {
+				return &mcp.GetPromptResult{
+					Messages: []mcp.PromptMessage{
+						{
+							Role: mcp.RoleUser,
+							Content: mcp.TextContent{
+								Type: "text",
+								Text: "Please explain the following code.",
+							},
+						},
+					},
+				}, nil
+			},
+		},
+	)
+
+	m := injectClientIntoManager(t, "github", client)
+
+	conn := &MCPConnection{
+		client:     client,
+		serverName: "github",
+		isHealthy:  true,
+	}
+	m.loadServerPrompts(ctx, "github", conn)
+
+	prompts := m.GetPrompts()
+	if len(prompts) != 2 {
+		t.Fatalf("expected 2 prompts, got %d", len(prompts))
+	}
+
+	// Find review-pr prompt.
+	var reviewPR *MCPPrompt
+	for i := range prompts {
+		if prompts[i].Name == "review-pr" {
+			reviewPR = &prompts[i]
+			break
+		}
+	}
+	if reviewPR == nil {
+		t.Fatal("review-pr prompt not found")
+	}
+	if reviewPR.Description != "Review a pull request" {
+		t.Errorf("unexpected description: %q", reviewPR.Description)
+	}
+	if reviewPR.ServerName != "github" {
+		t.Errorf("unexpected server name: %q", reviewPR.ServerName)
+	}
+	if len(reviewPR.Arguments) != 2 {
+		t.Fatalf("expected 2 arguments, got %d", len(reviewPR.Arguments))
+	}
+
+	// Verify argument metadata.
+	arg0 := reviewPR.Arguments[0]
+	if arg0.Name != "pr_number" {
+		t.Errorf("expected first arg name 'pr_number', got %q", arg0.Name)
+	}
+	if !arg0.Required {
+		t.Error("expected first arg to be required")
+	}
+	arg1 := reviewPR.Arguments[1]
+	if arg1.Name != "focus" {
+		t.Errorf("expected second arg name 'focus', got %q", arg1.Name)
+	}
+	if arg1.Required {
+		t.Error("expected second arg to be optional")
+	}
+}
+
+func TestGetPrompt_ExpandsWithArgs(t *testing.T) {
+	ctx := context.Background()
+
+	client := newTestPromptServer(t,
+		server.ServerPrompt{
+			Prompt: mcp.NewPrompt("greet",
+				mcp.WithPromptDescription("Greet someone"),
+				mcp.WithArgument("name", mcp.RequiredArgument()),
+			),
+			Handler: func(ctx context.Context, req mcp.GetPromptRequest) (*mcp.GetPromptResult, error) {
+				name := req.Params.Arguments["name"]
+				return &mcp.GetPromptResult{
+					Description: "Greeting",
+					Messages: []mcp.PromptMessage{
+						{
+							Role: mcp.RoleUser,
+							Content: mcp.TextContent{
+								Type: "text",
+								Text: fmt.Sprintf("Hello, %s!", name),
+							},
+						},
+					},
+				}, nil
+			},
+		},
+	)
+
+	m := injectClientIntoManager(t, "myserver", client)
+
+	result, err := m.GetPrompt(ctx, "myserver", "greet", map[string]string{"name": "World"})
+	if err != nil {
+		t.Fatalf("GetPrompt error: %v", err)
+	}
+	if result.Description != "Greeting" {
+		t.Errorf("unexpected description: %q", result.Description)
+	}
+	if len(result.Messages) != 1 {
+		t.Fatalf("expected 1 message, got %d", len(result.Messages))
+	}
+	if result.Messages[0].Role != "user" {
+		t.Errorf("unexpected role: %q", result.Messages[0].Role)
+	}
+	if result.Messages[0].Content != "Hello, World!" {
+		t.Errorf("unexpected content: %q", result.Messages[0].Content)
+	}
+}
+
+func TestGetPrompt_MultipleMessages(t *testing.T) {
+	ctx := context.Background()
+
+	client := newTestPromptServer(t,
+		server.ServerPrompt{
+			Prompt: mcp.NewPrompt("chat-starter"),
+			Handler: func(ctx context.Context, req mcp.GetPromptRequest) (*mcp.GetPromptResult, error) {
+				return &mcp.GetPromptResult{
+					Messages: []mcp.PromptMessage{
+						{
+							Role:    mcp.RoleUser,
+							Content: mcp.TextContent{Type: "text", Text: "What is Go?"},
+						},
+						{
+							Role:    mcp.RoleAssistant,
+							Content: mcp.TextContent{Type: "text", Text: "Go is a programming language."},
+						},
+						{
+							Role:    mcp.RoleUser,
+							Content: mcp.TextContent{Type: "text", Text: "Tell me more."},
+						},
+					},
+				}, nil
+			},
+		},
+	)
+
+	m := injectClientIntoManager(t, "server", client)
+
+	result, err := m.GetPrompt(ctx, "server", "chat-starter", nil)
+	if err != nil {
+		t.Fatalf("GetPrompt error: %v", err)
+	}
+	if len(result.Messages) != 3 {
+		t.Fatalf("expected 3 messages, got %d", len(result.Messages))
+	}
+	if result.Messages[0].Role != "user" {
+		t.Errorf("msg[0] role: got %q, want 'user'", result.Messages[0].Role)
+	}
+	if result.Messages[1].Role != "assistant" {
+		t.Errorf("msg[1] role: got %q, want 'assistant'", result.Messages[1].Role)
+	}
+	if result.Messages[2].Content != "Tell me more." {
+		t.Errorf("msg[2] content: got %q, want 'Tell me more.'", result.Messages[2].Content)
+	}
+}
+
+func TestGetPrompt_ServerNotFound(t *testing.T) {
+	m := NewMCPToolManager()
+	pool := NewMCPConnectionPool(DefaultConnectionPoolConfig(), false, nil, nil)
+	m.connectionPool = pool
+
+	_, err := m.GetPrompt(context.Background(), "nonexistent", "foo", nil)
+	if err == nil {
+		t.Fatal("expected error for nonexistent server")
+	}
+}
+
+func TestGetPrompt_NoPool(t *testing.T) {
+	m := NewMCPToolManager()
+
+	_, err := m.GetPrompt(context.Background(), "any", "foo", nil)
+	if err == nil {
+		t.Fatal("expected error with no pool")
+	}
+}
+
+func TestRemoveServer_RemovesPrompts(t *testing.T) {
+	ctx := context.Background()
+
+	client := newTestPromptServer(t,
+		server.ServerPrompt{
+			Prompt: mcp.NewPrompt("my-prompt",
+				mcp.WithPromptDescription("A test prompt"),
+			),
+			Handler: func(ctx context.Context, req mcp.GetPromptRequest) (*mcp.GetPromptResult, error) {
+				return &mcp.GetPromptResult{
+					Messages: []mcp.PromptMessage{
+						{Role: mcp.RoleUser, Content: mcp.TextContent{Type: "text", Text: "hi"}},
+					},
+				}, nil
+			},
+		},
+	)
+
+	m := injectClientIntoManager(t, "testsvr", client)
+
+	// Manually populate tools and prompts as loadServerTools would.
+	conn := m.connectionPool.connections["testsvr"]
+	m.loadServerPrompts(ctx, "testsvr", conn)
+
+	// Also add a fake tool mapping so RemoveServer finds the server.
+	m.toolMap["testsvr__noop"] = &toolMapping{
+		serverName:   "testsvr",
+		originalName: "noop",
+	}
+	m.tools = append(m.tools, MCPTool{
+		Name:       "testsvr__noop",
+		ServerName: "testsvr",
+	})
+
+	// Verify prompts exist before removal.
+	if got := len(m.GetPrompts()); got != 1 {
+		t.Fatalf("expected 1 prompt before removal, got %d", got)
+	}
+
+	// Remove the server.
+	err := m.RemoveServer("testsvr")
+	if err != nil {
+		t.Fatalf("RemoveServer error: %v", err)
+	}
+
+	// Verify prompts are gone.
+	if got := len(m.GetPrompts()); got != 0 {
+		t.Fatalf("expected 0 prompts after removal, got %d", got)
+	}
+}
+
+func TestLoadServerPrompts_NoPromptCapability(t *testing.T) {
+	// Server without prompt capabilities — ListPrompts should fail gracefully.
+	mcpServer := server.NewMCPServer("no-prompts", "1.0.0",
+		server.WithToolCapabilities(true),
+		// No WithPromptCapabilities
+	)
+	mcpServer.AddTool(
+		mcp.NewTool("noop"),
+		func(ctx context.Context, req mcp.CallToolRequest) (*mcp.CallToolResult, error) {
+			return mcp.NewToolResultText("ok"), nil
+		},
+	)
+
+	client, err := mcpclient.NewInProcessClient(mcpServer)
+	if err != nil {
+		t.Fatalf("NewInProcessClient: %v", err)
+	}
+	ctx := context.Background()
+	_ = client.Start(ctx)
+	initReq := mcp.InitializeRequest{}
+	initReq.Params.ProtocolVersion = mcp.LATEST_PROTOCOL_VERSION
+	initReq.Params.ClientInfo = mcp.Implementation{Name: "test", Version: "1.0"}
+	_, _ = client.Initialize(ctx, initReq)
+	t.Cleanup(func() { _ = client.Close() })
+
+	m := NewMCPToolManager()
+	conn := &MCPConnection{
+		client:     client,
+		serverName: "no-prompts",
+		isHealthy:  true,
+	}
+
+	// Should not panic or error — just silently skip.
+	m.loadServerPrompts(ctx, "no-prompts", conn)
+
+	if got := len(m.GetPrompts()); got != 0 {
+		t.Fatalf("expected 0 prompts from server without prompt capability, got %d", got)
+	}
+}
+
+func TestExtractPromptContent(t *testing.T) {
+	t.Run("TextContent", func(t *testing.T) {
+		text, parts := extractPromptContent(mcp.TextContent{Type: "text", Text: "hello world"})
+		if text != "hello world" {
+			t.Errorf("text = %q, want %q", text, "hello world")
+		}
+		if len(parts) != 0 {
+			t.Errorf("expected 0 file parts, got %d", len(parts))
+		}
+	})
+
+	t.Run("ImageContent", func(t *testing.T) {
+		// base64 of "fake image"
+		encoded := base64.StdEncoding.EncodeToString([]byte("fake image"))
+		text, parts := extractPromptContent(mcp.ImageContent{
+			Type:     "image",
+			Data:     encoded,
+			MIMEType: "image/png",
+		})
+		if text != "" {
+			t.Errorf("expected empty text, got %q", text)
+		}
+		if len(parts) != 1 {
+			t.Fatalf("expected 1 file part, got %d", len(parts))
+		}
+		if parts[0].MediaType != "image/png" {
+			t.Errorf("media type = %q, want %q", parts[0].MediaType, "image/png")
+		}
+		if parts[0].Filename != "image.png" {
+			t.Errorf("filename = %q, want %q", parts[0].Filename, "image.png")
+		}
+		if string(parts[0].Data) != "fake image" {
+			t.Errorf("data = %q, want %q", string(parts[0].Data), "fake image")
+		}
+	})
+
+	t.Run("ImageContent_DefaultMIME", func(t *testing.T) {
+		encoded := base64.StdEncoding.EncodeToString([]byte("img"))
+		_, parts := extractPromptContent(mcp.ImageContent{
+			Type: "image",
+			Data: encoded,
+			// no MIMEType → should default to image/png
+		})
+		if len(parts) != 1 {
+			t.Fatalf("expected 1 file part, got %d", len(parts))
+		}
+		if parts[0].MediaType != "image/png" {
+			t.Errorf("default MIME = %q, want %q", parts[0].MediaType, "image/png")
+		}
+	})
+
+	t.Run("AudioContent", func(t *testing.T) {
+		encoded := base64.StdEncoding.EncodeToString([]byte("fake audio"))
+		text, parts := extractPromptContent(mcp.AudioContent{
+			Type:     "audio",
+			Data:     encoded,
+			MIMEType: "audio/mp3",
+		})
+		if text != "" {
+			t.Errorf("expected empty text, got %q", text)
+		}
+		if len(parts) != 1 {
+			t.Fatalf("expected 1 file part, got %d", len(parts))
+		}
+		if parts[0].MediaType != "audio/mp3" {
+			t.Errorf("media type = %q, want %q", parts[0].MediaType, "audio/mp3")
+		}
+		if parts[0].Filename != "audio.wav" {
+			t.Errorf("filename = %q, want %q", parts[0].Filename, "audio.wav")
+		}
+	})
+
+	t.Run("EmbeddedResource_Text", func(t *testing.T) {
+		text, parts := extractPromptContent(mcp.EmbeddedResource{
+			Type: "resource",
+			Resource: mcp.TextResourceContents{
+				URI:      "file:///project/main.go",
+				MIMEType: "text/x-go",
+				Text:     "package main",
+			},
+		})
+		if text == "" {
+			t.Fatal("expected non-empty text for text resource")
+		}
+		if !strings.Contains(text, "package main") {
+			t.Errorf("text should contain resource content, got %q", text)
+		}
+		if !strings.Contains(text, "file:///project/main.go") {
+			t.Errorf("text should contain URI, got %q", text)
+		}
+		if len(parts) != 0 {
+			t.Errorf("expected 0 file parts for text resource, got %d", len(parts))
+		}
+	})
+
+	t.Run("EmbeddedResource_Blob", func(t *testing.T) {
+		blobData := []byte("binary content")
+		encoded := base64.StdEncoding.EncodeToString(blobData)
+		text, parts := extractPromptContent(mcp.EmbeddedResource{
+			Type: "resource",
+			Resource: mcp.BlobResourceContents{
+				URI:      "file:///project/data.bin",
+				MIMEType: "application/octet-stream",
+				Blob:     encoded,
+			},
+		})
+		if text != "" {
+			t.Errorf("expected empty text for blob resource, got %q", text)
+		}
+		if len(parts) != 1 {
+			t.Fatalf("expected 1 file part for blob resource, got %d", len(parts))
+		}
+		if parts[0].Filename != "data.bin" {
+			t.Errorf("filename = %q, want %q", parts[0].Filename, "data.bin")
+		}
+		if parts[0].MediaType != "application/octet-stream" {
+			t.Errorf("media type = %q, want %q", parts[0].MediaType, "application/octet-stream")
+		}
+		if string(parts[0].Data) != "binary content" {
+			t.Errorf("data = %q, want %q", string(parts[0].Data), "binary content")
+		}
+	})
+
+	t.Run("ResourceLink", func(t *testing.T) {
+		text, parts := extractPromptContent(mcp.ResourceLink{
+			Type: "resource_link",
+			URI:  "file:///docs/readme.md",
+			Name: "readme.md",
+		})
+		if text == "" {
+			t.Fatal("expected non-empty text for resource link")
+		}
+		if !strings.Contains(text, "file:///docs/readme.md") {
+			t.Errorf("text should contain URI, got %q", text)
+		}
+		if !strings.Contains(text, "readme.md") {
+			t.Errorf("text should contain name, got %q", text)
+		}
+		if len(parts) != 0 {
+			t.Errorf("expected 0 file parts for resource link, got %d", len(parts))
+		}
+	})
+
+	t.Run("InvalidBase64", func(t *testing.T) {
+		_, parts := extractPromptContent(mcp.ImageContent{
+			Type:     "image",
+			Data:     "not-valid-base64!!!",
+			MIMEType: "image/png",
+		})
+		if len(parts) != 0 {
+			t.Errorf("expected 0 file parts for invalid base64, got %d", len(parts))
+		}
+	})
+
+	t.Run("NilContent", func(t *testing.T) {
+		text, parts := extractPromptContent((*mcp.TextContent)(nil))
+		if text != "" {
+			t.Errorf("expected empty text for nil, got %q", text)
+		}
+		if len(parts) != 0 {
+			t.Errorf("expected 0 parts for nil, got %d", len(parts))
+		}
+	})
+}
+
+func TestFilenameFromURI(t *testing.T) {
+	tests := []struct {
+		uri  string
+		want string
+	}{
+		{"file:///path/to/image.png", "image.png"},
+		{"file:///single.txt", "single.txt"},
+		{"resource://server/data.json", "data.json"},
+		{"nopath", "nopath"},
+		{"", "resource"},
+	}
+	for _, tt := range tests {
+		t.Run(tt.uri, func(t *testing.T) {
+			got := filenameFromURI(tt.uri)
+			if got != tt.want {
+				t.Errorf("filenameFromURI(%q) = %q, want %q", tt.uri, got, tt.want)
+			}
+		})
+	}
+}
+
+func TestGetPrompt_EmbeddedResources(t *testing.T) {
+	ctx := context.Background()
+
+	imgData := base64.StdEncoding.EncodeToString([]byte("fake-png"))
+	blobData := base64.StdEncoding.EncodeToString([]byte("binary-blob"))
+
+	client := newTestPromptServer(t,
+		server.ServerPrompt{
+			Prompt: mcp.NewPrompt("review-with-files",
+				mcp.WithPromptDescription("Review with embedded resources"),
+			),
+			Handler: func(ctx context.Context, req mcp.GetPromptRequest) (*mcp.GetPromptResult, error) {
+				return &mcp.GetPromptResult{
+					Description: "Review prompt with embedded files",
+					Messages: []mcp.PromptMessage{
+						{
+							Role:    mcp.RoleUser,
+							Content: mcp.TextContent{Type: "text", Text: "Please review these files:"},
+						},
+						{
+							Role: mcp.RoleUser,
+							Content: mcp.EmbeddedResource{
+								Type: "resource",
+								Resource: mcp.TextResourceContents{
+									URI:      "file:///src/main.go",
+									MIMEType: "text/x-go",
+									Text:     "package main\n\nfunc main() {}",
+								},
+							},
+						},
+						{
+							Role: mcp.RoleUser,
+							Content: mcp.ImageContent{
+								Type:     "image",
+								Data:     imgData,
+								MIMEType: "image/png",
+							},
+						},
+						{
+							Role: mcp.RoleUser,
+							Content: mcp.EmbeddedResource{
+								Type: "resource",
+								Resource: mcp.BlobResourceContents{
+									URI:      "file:///data/model.bin",
+									MIMEType: "application/octet-stream",
+									Blob:     blobData,
+								},
+							},
+						},
+					},
+				}, nil
+			},
+		},
+	)
+
+	m := injectClientIntoManager(t, "test", client)
+
+	result, err := m.GetPrompt(ctx, "test", "review-with-files", nil)
+	if err != nil {
+		t.Fatalf("GetPrompt error: %v", err)
+	}
+	if result.Description != "Review prompt with embedded files" {
+		t.Errorf("unexpected description: %q", result.Description)
+	}
+
+	// Should have 4 messages: text, embedded text resource, image, embedded blob
+	if len(result.Messages) != 4 {
+		t.Fatalf("expected 4 messages, got %d", len(result.Messages))
+	}
+
+	// Message 0: plain text
+	msg0 := result.Messages[0]
+	if msg0.Content != "Please review these files:" {
+		t.Errorf("msg[0] content = %q", msg0.Content)
+	}
+	if len(msg0.FileParts) != 0 {
+		t.Errorf("msg[0] expected 0 file parts, got %d", len(msg0.FileParts))
+	}
+
+	// Message 1: embedded text resource → inlined as text
+	msg1 := result.Messages[1]
+	if !strings.Contains(msg1.Content, "package main") {
+		t.Errorf("msg[1] should contain resource text, got %q", msg1.Content)
+	}
+	if len(msg1.FileParts) != 0 {
+		t.Errorf("msg[1] expected 0 file parts (text resource), got %d", len(msg1.FileParts))
+	}
+
+	// Message 2: image → file part
+	msg2 := result.Messages[2]
+	if msg2.Content != "" {
+		t.Errorf("msg[2] expected empty text for image, got %q", msg2.Content)
+	}
+	if len(msg2.FileParts) != 1 {
+		t.Fatalf("msg[2] expected 1 file part, got %d", len(msg2.FileParts))
+	}
+	if msg2.FileParts[0].MediaType != "image/png" {
+		t.Errorf("msg[2] file part MIME = %q", msg2.FileParts[0].MediaType)
+	}
+	if string(msg2.FileParts[0].Data) != "fake-png" {
+		t.Errorf("msg[2] file part data = %q", string(msg2.FileParts[0].Data))
+	}
+
+	// Message 3: embedded blob resource → file part
+	msg3 := result.Messages[3]
+	if msg3.Content != "" {
+		t.Errorf("msg[3] expected empty text for blob resource, got %q", msg3.Content)
+	}
+	if len(msg3.FileParts) != 1 {
+		t.Fatalf("msg[3] expected 1 file part, got %d", len(msg3.FileParts))
+	}
+	if msg3.FileParts[0].Filename != "model.bin" {
+		t.Errorf("msg[3] filename = %q, want %q", msg3.FileParts[0].Filename, "model.bin")
+	}
+	if string(msg3.FileParts[0].Data) != "binary-blob" {
+		t.Errorf("msg[3] file part data = %q", string(msg3.FileParts[0].Data))
+	}
+}

internal/tools/mcp_test.go

@@ -103,14 +103,12 @@ func TestMCPToolManager_EmptyConfig(t *testing.T) {
 
 	// Test that we can get tool info for each tool
 	for _, tool := range tools {
-		info := tool.Info()
-
 		// Check that the tool has a valid name
-		if info.Name == "" {
+		if tool.Name == "" {
 			t.Error("Tool has empty name")
 		}
 
-		t.Logf("Tool: %s, Description: %s", info.Name, info.Description)
+		t.Logf("Tool: %s, Description: %s", tool.Name, tool.Description)
 	}
 }
 

internal/tools/oauth_flow.go

@@ -6,6 +6,7 @@ import (
 	"net/url"
 
 	"github.com/mark3labs/mcp-go/client"
+	"github.com/mark3labs/mcp-go/client/transport"
 )
 
 // MCPAuthHandler is the internal interface for handling MCP OAuth flows.
@@ -21,6 +22,12 @@ type MCPAuthHandler interface {
 	HandleAuth(ctx context.Context, serverName string, authURL string) (callbackURL string, err error)
 }
 
+// TokenStoreFactory creates a transport.TokenStore for a given MCP server URL.
+// When provided to the connection pool, it is called once per remote MCP server
+// instead of using the default file-based token store. Implementations can
+// return any transport.TokenStore — in-memory, database-backed, encrypted, etc.
+type TokenStoreFactory func(serverURL string) (transport.TokenStore, error)
+
 // OAuthFlowRunner handles the OAuth authorization flow when an MCP server
 // returns an OAuthAuthorizationRequiredError. It coordinates dynamic client
 // registration, PKCE generation, user authorization (via MCPAuthHandler),

internal/tools/testdata/echo_server.py

@@ -0,0 +1,111 @@
+#!/usr/bin/env python3
+"""Minimal MCP server over stdio for testing. Exposes one tool: echo."""
+import json
+import sys
+
+
+def read_message():
+    """Read a JSON-RPC message from stdin."""
+    line = sys.stdin.readline()
+    if not line:
+        return None
+    return json.loads(line.strip())
+
+
+def write_message(msg):
+    """Write a JSON-RPC message to stdout."""
+    sys.stdout.write(json.dumps(msg) + "\n")
+    sys.stdout.flush()
+
+
+def handle(msg):
+    method = msg.get("method", "")
+    mid = msg.get("id")
+
+    if method == "initialize":
+        write_message({
+            "jsonrpc": "2.0",
+            "id": mid,
+            "result": {
+                "protocolVersion": "2024-11-05",
+                "capabilities": {"tools": {}},
+                "serverInfo": {"name": "test-echo", "version": "1.0.0"},
+            },
+        })
+    elif method == "notifications/initialized":
+        pass  # no response needed
+    elif method == "tools/list":
+        write_message({
+            "jsonrpc": "2.0",
+            "id": mid,
+            "result": {
+                "tools": [
+                    {
+                        "name": "echo",
+                        "description": "Echoes the input text back.",
+                        "inputSchema": {
+                            "type": "object",
+                            "properties": {
+                                "text": {"type": "string", "description": "Text to echo"}
+                            },
+                            "required": ["text"],
+                        },
+                    },
+                    {
+                        "name": "greet",
+                        "description": "Returns a greeting.",
+                        "inputSchema": {
+                            "type": "object",
+                            "properties": {
+                                "name": {"type": "string", "description": "Name to greet"}
+                            },
+                            "required": ["name"],
+                        },
+                    },
+                ]
+            },
+        })
+    elif method == "tools/call":
+        tool_name = msg["params"]["name"]
+        args = msg["params"].get("arguments", {})
+        if tool_name == "echo":
+            text = args.get("text", "")
+            write_message({
+                "jsonrpc": "2.0",
+                "id": mid,
+                "result": {
+                    "content": [{"type": "text", "text": text}]
+                },
+            })
+        elif tool_name == "greet":
+            name = args.get("name", "World")
+            write_message({
+                "jsonrpc": "2.0",
+                "id": mid,
+                "result": {
+                    "content": [{"type": "text", "text": f"Hello, {name}!"}]
+                },
+            })
+        else:
+            write_message({
+                "jsonrpc": "2.0",
+                "id": mid,
+                "error": {"code": -32601, "message": f"Unknown tool: {tool_name}"},
+            })
+    elif method == "ping":
+        write_message({"jsonrpc": "2.0", "id": mid, "result": {}})
+    else:
+        if mid is not None:
+            write_message({
+                "jsonrpc": "2.0",
+                "id": mid,
+                "error": {"code": -32601, "message": f"Unknown method: {method}"},
+            })
+
+
+if __name__ == "__main__":
+    while True:
+        msg = read_message()
+        if msg is None:
+            break
+        handle(msg)

internal/ui/children_test.go

@@ -69,30 +69,6 @@ func TestInputComponent_SubmitEmitsSubmitMsg(t *testing.T) {
 	}
 }
 
-// TestInputComponent_CtrlD_SubmitEmitsSubmitMsg verifies that ctrl+d also
-// submits the text.
-func TestInputComponent_CtrlD_SubmitEmitsSubmitMsg(t *testing.T) {
-	ctrl := &stubAppController{}
-	c := newTestInput(ctrl)
-
-	c.textarea.SetValue("ctrl+d submit")
-	c.lastValue = "ctrl+d submit"
-
-	_, cmd := sendInputMsg(c, tea.KeyPressMsg{Code: 'd', Mod: tea.ModCtrl})
-
-	msg := runCmd(cmd)
-	if msg == nil {
-		t.Fatal("expected a cmd from ctrl+d on non-empty input")
-	}
-	sm, ok := msg.(core.SubmitMsg)
-	if !ok {
-		t.Fatalf("expected submitMsg from ctrl+d, got %T", msg)
-	}
-	if sm.Text != "ctrl+d submit" {
-		t.Fatalf("expected Text='ctrl+d submit', got %q", sm.Text)
-	}
-}
-
 // TestInputComponent_EmptySubmit_NoCmd verifies that submitting an empty or
 // whitespace-only string produces no cmd.
 func TestInputComponent_EmptySubmit_NoCmd(t *testing.T) {

internal/ui/commands/commands.go

@@ -20,6 +20,7 @@ type SlashCommand struct {
 	Aliases     []string
 	Category    string                       // e.g., "Navigation", "System", "Info"
 	Complete    func(prefix string) []string // optional argument tab-completion
+	HasArgs     bool                         // true when the command expects arguments (e.g. prompt templates with placeholders)
 }
 
 // SlashCommands provides the global registry of all available slash commands
@@ -83,7 +84,7 @@ var SlashCommands = []SlashCommand{
 	},
 	{
 		Name:        "/thinking",
-		Description: "Set thinking/reasoning level (off, minimal, low, medium, high)",
+		Description: "Set thinking/reasoning level (off, none, minimal, low, medium, high)",
 		Category:    "System",
 		Aliases:     []string{"/think"},
 		Complete: func(prefix string) []string {

internal/ui/core/events.go

@@ -25,6 +25,11 @@ type SubmitMsg struct {
 // presses ESC a second time, the canceling state is reset to false.
 type CancelTimerExpiredMsg struct{}
 
+// CtrlCResetMsg is sent after a short delay when the user presses Ctrl+C to
+// clear input. If the user doesn't press Ctrl+C again within the timeout,
+// the ctrlCPressedOnce flag is reset so the next Ctrl+C will clear again.
+type CtrlCResetMsg struct{}
+
 // --- Tree session events ---
 
 // TreeNodeSelectedMsg is sent when the user selects a node in the tree selector.

internal/ui/event_handler.go

@@ -139,7 +139,9 @@ func (h *CLIEventHandler) Handle(msg tea.Msg) {
 		case "block":
 			h.cli.DisplayExtensionBlock(e.Text, e.BorderColor, e.Subtitle)
 		default:
-			fmt.Println(e.Text)
+			// Route unstyled extension prints through the system message
+			// renderer so they get consistent formatting and timestamps.
+			h.cli.DisplayInfo(e.Text)
 		}
 
 	case app.StepCompleteEvent:

internal/ui/exports.go

@@ -29,9 +29,16 @@ type (
 	ExtensionCommand = commands.ExtensionCommand
 )
 
-// Re-export functions from fileutil package
+// Re-export functions and types from fileutil package
 var ProcessFileAttachments = fileutil.ProcessFileAttachments
 
+// Re-export types from fileutil
+type (
+	FileAttachmentResult = fileutil.FileAttachmentResult
+	FilePart             = fileutil.FilePart
+	MCPResourceReader    = fileutil.MCPResourceReader
+)
+
 // Re-export from prefs package
 var (
 	LoadThemePreference         = prefs.LoadThemePreference

internal/ui/factory.go

@@ -109,9 +109,7 @@ func SetupCLI(opts *CLISetupOptions) (*CLI, error) {
 		}
 	}
 
-	fmt.Println("")
-
-	// Display model info
+	// Display model info (the system message block provides its own spacing).
 	if provider != "unknown" && model != "unknown" {
 		cli.DisplayInfo(fmt.Sprintf("Model loaded: %s (%s)", provider, model))
 	}

internal/ui/file_suggestions.go

@@ -8,15 +8,24 @@ import (
 	"strings"
 )
 
-// FileSuggestion represents a single file or directory suggestion for the @
-// autocomplete popup.
+// FileSuggestion represents a single file, directory, or MCP resource
+// suggestion for the @ autocomplete popup.
 type FileSuggestion struct {
-	// RelPath is the path relative to the search base (e.g. "cmd/kit/main.go").
+	// RelPath is the path relative to the search base (e.g. "cmd/kit/main.go")
+	// or a display name for MCP resources (e.g. "mcp:server/resource-name").
 	RelPath string
 	// IsDir is true when the entry is a directory.
 	IsDir bool
 	// Score is the fuzzy match score (higher is better).
 	Score int
+	// IsMCPResource is true for MCP resource entries.
+	IsMCPResource bool
+	// MCPServerName is the MCP server name (set when IsMCPResource is true).
+	MCPServerName string
+	// MCPResourceURI is the MCP resource URI (set when IsMCPResource is true).
+	MCPResourceURI string
+	// MCPMIMEType is the MIME type hint from the MCP server.
+	MCPMIMEType string
 }
 
 // maxFileSuggestions is the maximum number of file suggestions returned.

internal/ui/fileutil/processor.go

@@ -2,29 +2,85 @@ package fileutil
 
 import (
 	"fmt"
+	"mime"
+	"net/http"
 	"os"
 	"path/filepath"
 	"regexp"
 	"strings"
+
+	"github.com/mark3labs/kit/internal/fences"
 )
 
+// FilePart represents a binary file attachment (image, audio, etc.) extracted
+// from an @file reference. Callers convert this to kit.LLMFilePart before
+// sending to the LLM. Defined here to avoid a circular dependency on pkg/kit.
+type FilePart struct {
+	// Filename is the basename of the file (e.g. "photo.png").
+	Filename string
+	// Data is the raw file bytes.
+	Data []byte
+	// MediaType is the MIME type (e.g. "image/png", "audio/wav").
+	MediaType string
+}
+
+// MCPResourceReader is a callback function that reads an MCP resource by
+// server name and URI. Returns text content, binary data, MIME type, and error.
+// Used by ProcessFileAttachments to resolve @mcp:server:uri tokens.
+type MCPResourceReader func(serverName, uri string) (text string, blobData []byte, mimeType string, isBlob bool, err error)
+
+// FileAttachmentResult is the result of processing @file references in user
+// input. Text files are inlined as XML in ProcessedText; binary files (images,
+// audio, video, PDFs) are returned as FileParts for multimodal submission.
+type FileAttachmentResult struct {
+	// ProcessedText is the user's text with @file tokens replaced:
+	// text files become XML-wrapped content, binary file tokens are removed.
+	ProcessedText string
+	// FileParts contains binary file attachments extracted from @file
+	// references. Empty when all referenced files are text.
+	FileParts []FilePart
+}
+
 // fileTokenPattern matches @file references in user text. Supports:
 //   - @"path with spaces.txt" (quoted)
 //   - @path/to/file.txt      (unquoted, no spaces)
 var fileTokenPattern = regexp.MustCompile(`@"[^"]+"|@[^\s]+`)
 
 // ProcessFileAttachments scans the user's input text for @file references,
-// reads each referenced file, and returns the text with @tokens replaced by
-// XML-wrapped file content. Non-file @ tokens (like email addresses) are left
-// unchanged.
+// reads each referenced file, and returns a result containing the processed
+// text and any binary file attachments. Text files are XML-wrapped inline;
+// binary files (images, audio, etc.) are extracted as FileParts for multimodal
+// submission. Non-file @ tokens (like email addresses) are left unchanged.
 //
-// Returns the original text unchanged if no valid @file references are found.
-func ProcessFileAttachments(text string, cwd string) string {
+// MCP resources are supported via @mcp:server:uri tokens. The optional
+// mcpReader callback is used to resolve them; pass nil to skip MCP resources.
+func ProcessFileAttachments(text string, cwd string, mcpReader ...MCPResourceReader) FileAttachmentResult {
+	var reader MCPResourceReader
+	if len(mcpReader) > 0 {
+		reader = mcpReader[0]
+	}
+	var allParts []FilePart
+	processed := fences.ReplaceOutside(text, func(segment string) string {
+		result, parts := processFileTokens(segment, cwd, reader)
+		allParts = append(allParts, parts...)
+		return result
+	})
+	return FileAttachmentResult{
+		ProcessedText: processed,
+		FileParts:     allParts,
+	}
+}
+
+// processFileTokens handles @file replacement in a single text segment
+// that is known to be outside fenced code blocks. Returns the processed
+// text and any binary file parts extracted.
+func processFileTokens(text string, cwd string, mcpReader MCPResourceReader) (string, []FilePart) {
 	tokens := fileTokenPattern.FindAllString(text, -1)
 	if len(tokens) == 0 {
-		return text
+		return text, nil
 	}
 
+	var parts []FilePart
 	result := text
 	for _, token := range tokens {
 		path := tokenToPath(token)
@@ -32,6 +88,43 @@ func ProcessFileAttachments(text string, cwd string) string {
 			continue
 		}
 
+		// Check for MCP resource reference: @mcp:server:uri
+		if strings.HasPrefix(path, "mcp:") {
+			if mcpReader == nil {
+				continue
+			}
+			mcpRef := path[4:] // strip "mcp:"
+			// Split into server:uri (first colon separates server from URI)
+			serverName, uri, ok := strings.Cut(mcpRef, ":")
+			if !ok || serverName == "" || uri == "" {
+				continue // invalid format
+			}
+
+			textContent, blobData, mimeType, isBlob, err := mcpReader(serverName, uri)
+			if err != nil {
+				continue // skip on error, leave token as-is
+			}
+
+			if isBlob {
+				// Binary MCP resource → extract as FilePart.
+				filename := filepath.Base(uri)
+				if filename == "." || filename == "/" {
+					filename = serverName + "_resource"
+				}
+				parts = append(parts, FilePart{
+					Filename:  filename,
+					Data:      blobData,
+					MediaType: mimeType,
+				})
+				result = strings.Replace(result, token, "", 1)
+			} else {
+				// Text MCP resource → inline as XML.
+				wrapped := fmt.Sprintf("<resource uri=\"%s\" server=\"%s\">\n%s\n</resource>", uri, serverName, textContent)
+				result = strings.Replace(result, token, wrapped, 1)
+			}
+			continue
+		}
+
 		absPath, err := resolvePath(path, cwd)
 		if err != nil {
 			// Not a valid file reference — leave the token as-is.
@@ -59,12 +152,28 @@ func ProcessFileAttachments(text string, cwd string) string {
 			continue
 		}
 
-		// Build the XML-wrapped replacement.
-		wrapped := wrapFileContent(absPath, content)
-		result = strings.Replace(result, token, wrapped, 1)
+		mediaType := detectMediaType(absPath, content)
+
+		if isBinaryMediaType(mediaType) {
+			// Binary file → extract as a FilePart for multimodal submission.
+			// Remove the @token from the text.
+			parts = append(parts, FilePart{
+				Filename:  filepath.Base(absPath),
+				Data:      content,
+				MediaType: mediaType,
+			})
+			result = strings.Replace(result, token, "", 1)
+		} else {
+			// Text file → inline as XML-wrapped content.
+			wrapped := wrapFileContent(absPath, content)
+			result = strings.Replace(result, token, wrapped, 1)
+		}
 	}
 
-	return result
+	// Clean up any extra whitespace left by removed binary tokens.
+	result = strings.TrimSpace(result)
+
+	return result, parts
 }
 
 // tokenToPath strips the @ prefix and optional quotes from a token,
@@ -127,3 +236,86 @@ func resolvePath(path string, cwd string) (string, error) {
 func wrapFileContent(absPath string, content []byte) string {
 	return fmt.Sprintf("<file path=\"%s\">\n%s\n</file>", absPath, string(content))
 }
+
+// detectMediaType determines the MIME type of a file using extension-based
+// lookup first (more reliable for known types), then falls back to content
+// sniffing via net/http.DetectContentType.
+func detectMediaType(path string, content []byte) string {
+	// Extension-based detection is more reliable for well-known types.
+	ext := strings.ToLower(filepath.Ext(path))
+	if mt := mime.TypeByExtension(ext); mt != "" {
+		// mime.TypeByExtension returns types like "image/png; charset=utf-8"
+		// — strip parameters.
+		if base, _, ok := strings.Cut(mt, ";"); ok {
+			return strings.TrimSpace(base)
+		}
+		return mt
+	}
+
+	// Known extensions that mime package may miss.
+	switch ext {
+	case ".webp":
+		return "image/webp"
+	case ".avif":
+		return "image/avif"
+	case ".heic", ".heif":
+		return "image/heif"
+	case ".opus":
+		return "audio/opus"
+	case ".flac":
+		return "audio/flac"
+	case ".m4a":
+		return "audio/mp4"
+	case ".wasm":
+		return "application/wasm"
+	}
+
+	// Content sniffing fallback.
+	if len(content) > 0 {
+		detected := http.DetectContentType(content)
+		if detected != "" && detected != "application/octet-stream" {
+			if base, _, ok := strings.Cut(detected, ";"); ok {
+				return strings.TrimSpace(base)
+			}
+			return detected
+		}
+	}
+
+	// Default: treat as plain text so it gets XML-wrapped.
+	return "text/plain"
+}
+
+// isBinaryMediaType returns true if the MIME type represents a binary file
+// that should be sent as a multimodal FilePart rather than XML-wrapped text.
+func isBinaryMediaType(mediaType string) bool {
+	// Image types — always binary.
+	if strings.HasPrefix(mediaType, "image/") {
+		return true
+	}
+	// Audio types — always binary.
+	if strings.HasPrefix(mediaType, "audio/") {
+		return true
+	}
+	// Video types — always binary.
+	if strings.HasPrefix(mediaType, "video/") {
+		return true
+	}
+	// Specific application types that are binary.
+	switch mediaType {
+	case "application/pdf",
+		"application/zip",
+		"application/gzip",
+		"application/x-tar",
+		"application/octet-stream",
+		"application/wasm",
+		"application/x-executable",
+		"application/vnd.ms-excel",
+		"application/vnd.openxmlformats-officedocument.spreadsheetml.sheet",
+		"application/vnd.ms-powerpoint",
+		"application/vnd.openxmlformats-officedocument.presentationml.presentation",
+		"application/msword",
+		"application/vnd.openxmlformats-officedocument.wordprocessingml.document":
+		return true
+	}
+	return false
+}

internal/ui/fileutil/processor_test.go

@@ -0,0 +1,209 @@
+package fileutil
+
+import (
+	"os"
+	"path/filepath"
+	"testing"
+)
+
+func TestProcessFileAttachments_TextFile(t *testing.T) {
+	// Create a temp text file
+	dir := t.TempDir()
+	textFile := filepath.Join(dir, "hello.txt")
+	if err := os.WriteFile(textFile, []byte("hello world"), 0644); err != nil {
+		t.Fatal(err)
+	}
+
+	text := "@" + textFile + " check this out"
+	result := ProcessFileAttachments(text, dir)
+
+	if len(result.FileParts) != 0 {
+		t.Errorf("expected 0 FileParts for text file, got %d", len(result.FileParts))
+	}
+	if result.ProcessedText == text {
+		t.Error("expected text file to be XML-wrapped, but got original text unchanged")
+	}
+	// Should contain XML wrapping
+	if !contains(result.ProcessedText, "<file path=") {
+		t.Error("expected XML <file> wrapping in processed text")
+	}
+	if !contains(result.ProcessedText, "hello world") {
+		t.Error("expected file content in processed text")
+	}
+}
+
+func TestProcessFileAttachments_BinaryFile(t *testing.T) {
+	// Create a minimal PNG file (binary)
+	dir := t.TempDir()
+	pngFile := filepath.Join(dir, "image.png")
+	// Minimal valid PNG header
+	pngData := []byte{
+		0x89, 0x50, 0x4E, 0x47, 0x0D, 0x0A, 0x1A, 0x0A, // PNG signature
+		0x00, 0x00, 0x00, 0x0D, 0x49, 0x48, 0x44, 0x52, // IHDR chunk
+		0x00, 0x00, 0x00, 0x01, 0x00, 0x00, 0x00, 0x01, // 1x1
+		0x08, 0x02, 0x00, 0x00, 0x00, 0x90, 0x77, 0x53, 0xDE, // 8bit RGB
+		0x00, 0x00, 0x00, 0x0C, 0x49, 0x44, 0x41, 0x54, // IDAT chunk
+		0x08, 0xD7, 0x63, 0xF8, 0xCF, 0xC0, 0x00, 0x00,
+		0x00, 0x02, 0x00, 0x01, 0xE2, 0x21, 0xBC, 0x33,
+		0x00, 0x00, 0x00, 0x00, 0x49, 0x45, 0x4E, 0x44, // IEND chunk
+		0xAE, 0x42, 0x60, 0x82,
+	}
+	if err := os.WriteFile(pngFile, pngData, 0644); err != nil {
+		t.Fatal(err)
+	}
+
+	text := "@" + pngFile + " what is this image?"
+	result := ProcessFileAttachments(text, dir)
+
+	if len(result.FileParts) != 1 {
+		t.Fatalf("expected 1 FilePart for binary file, got %d", len(result.FileParts))
+	}
+	if result.FileParts[0].MediaType != "image/png" {
+		t.Errorf("expected media type image/png, got %s", result.FileParts[0].MediaType)
+	}
+	if result.FileParts[0].Filename != "image.png" {
+		t.Errorf("expected filename image.png, got %s", result.FileParts[0].Filename)
+	}
+	// The @token should be removed from the text
+	if contains(result.ProcessedText, "@") && contains(result.ProcessedText, pngFile) {
+		t.Error("expected @token to be removed from processed text for binary file")
+	}
+	if contains(result.ProcessedText, "what is this image?") {
+		// Good, the prompt text should remain
+	} else {
+		t.Error("expected prompt text to remain in processed text")
+	}
+}
+
+func TestProcessFileAttachments_MCPResource(t *testing.T) {
+	// Test @mcp:server:uri token processing with a mock reader
+	text := "@mcp:test-server:docs://readme tell me about this"
+	reader := func(serverName, uri string) (string, []byte, string, bool, error) {
+		if serverName != "test-server" || uri != "docs://readme" {
+			t.Errorf("unexpected server/uri: %s/%s", serverName, uri)
+		}
+		return "Hello from MCP resource", nil, "text/plain", false, nil
+	}
+
+	result := ProcessFileAttachments(text, "/tmp", reader)
+
+	if len(result.FileParts) != 0 {
+		t.Errorf("expected 0 FileParts for text MCP resource, got %d", len(result.FileParts))
+	}
+	if !contains(result.ProcessedText, "<resource uri=\"docs://readme\" server=\"test-server\">") {
+		t.Error("expected <resource> XML wrapping in processed text")
+	}
+	if !contains(result.ProcessedText, "Hello from MCP resource") {
+		t.Error("expected MCP resource content in processed text")
+	}
+}
+
+func TestProcessFileAttachments_MCPResource_Binary(t *testing.T) {
+	// Test @mcp:server:uri token processing for a binary resource
+	text := "@mcp:test-server:images://logo describe this"
+	reader := func(serverName, uri string) (string, []byte, string, bool, error) {
+		if serverName != "test-server" || uri != "images://logo" {
+			t.Errorf("unexpected server/uri: %s/%s", serverName, uri)
+		}
+		return "", []byte{0x89, 0x50, 0x4E, 0x47}, "image/png", true, nil
+	}
+
+	result := ProcessFileAttachments(text, "/tmp", reader)
+
+	if len(result.FileParts) != 1 {
+		t.Fatalf("expected 1 FilePart for binary MCP resource, got %d", len(result.FileParts))
+	}
+	if result.FileParts[0].MediaType != "image/png" {
+		t.Errorf("expected media type image/png, got %s", result.FileParts[0].MediaType)
+	}
+	if result.FileParts[0].Filename != "logo" {
+		t.Errorf("expected filename 'logo', got %s", result.FileParts[0].Filename)
+	}
+	// The @token should be removed from the text
+	if contains(result.ProcessedText, "@mcp:") {
+		t.Error("expected @mcp: token to be removed from processed text for binary resource")
+	}
+}
+
+func TestProcessFileAttachments_NoReader(t *testing.T) {
+	// Without an MCP reader, @mcp: tokens should be left as-is
+	text := "@mcp:server:resource this is a test"
+	result := ProcessFileAttachments(text, "/tmp")
+
+	if len(result.FileParts) != 0 {
+		t.Errorf("expected 0 FileParts, got %d", len(result.FileParts))
+	}
+	// The @mcp: token should remain unchanged since no reader was provided
+	if result.ProcessedText != text {
+		t.Errorf("expected text unchanged without reader, got: %s", result.ProcessedText)
+	}
+}
+
+func TestDetectMediaType(t *testing.T) {
+	tests := []struct {
+		ext      string
+		content  []byte
+		expected string
+	}{
+		// An intentionally-synthetic extension that is not registered
+		// in any system MIME database. Exercises the "unknown ext +
+		// no content" branch, which must return the text/plain default.
+		// Do not use real extensions (e.g. .go) here: CI images often
+		// ship /etc/mime.types with entries like ".go → text/x-go",
+		// which would make the assertion environment-dependent.
+		{".kitsyntheticext", nil, "text/plain"},
+		{".png", []byte{0x89, 0x50, 0x4E, 0x47}, "image/png"},
+		{".jpg", []byte{0xFF, 0xD8, 0xFF}, "image/jpeg"},
+		{".pdf", []byte{0x25, 0x50, 0x44, 0x46}, "application/pdf"},
+		{".txt", []byte("hello"), "text/plain"},
+		{".wav", nil, "audio/wav"},
+		{".webp", nil, "image/webp"},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.ext, func(t *testing.T) {
+			got := detectMediaType("test"+tt.ext, tt.content)
+			if got != tt.expected {
+				t.Errorf("detectMediaType(%q) = %q, want %q", tt.ext, got, tt.expected)
+			}
+		})
+	}
+}
+
+func TestIsBinaryMediaType(t *testing.T) {
+	tests := []struct {
+		mimeType string
+		expected bool
+	}{
+		{"image/png", true},
+		{"image/jpeg", true},
+		{"audio/wav", true},
+		{"video/mp4", true},
+		{"application/pdf", true},
+		{"text/plain", false},
+		{"text/go", false},
+		{"application/json", false},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.mimeType, func(t *testing.T) {
+			got := isBinaryMediaType(tt.mimeType)
+			if got != tt.expected {
+				t.Errorf("isBinaryMediaType(%q) = %v, want %v", tt.mimeType, got, tt.expected)
+			}
+		})
+	}
+}
+
+func contains(s, substr string) bool {
+	return len(s) >= len(substr) && (s == substr || len(s) > 0 && containsStr(s, substr))
+}
+
+func containsStr(s, substr string) bool {
+	for i := 0; i <= len(s)-len(substr); i++ {
+		if s[i:i+len(substr)] == substr {
+			return true
+		}
+	}
+	return false
+}

internal/ui/input.go

@@ -2,6 +2,7 @@ package ui
 
 import (
 	"fmt"
+	"sort"
 	"strings"
 
 	"charm.land/bubbles/v2/key"
@@ -61,6 +62,10 @@ type InputComponent struct {
 	// autocomplete suggestions. Set by the parent via SetCwd.
 	cwd string
 
+	// mcpResources is a callback that returns available MCP resources for
+	// the @ autocomplete popup. Set by the parent via SetMCPResourceProvider.
+	mcpResources func() []FileSuggestion
+
 	// appCtrl is used for slash commands that mutate app state.
 	// May be nil in tests; nil-safe.
 	appCtrl AppController
@@ -147,6 +152,12 @@ func (s *InputComponent) SetCwd(cwd string) {
 	s.cwd = cwd
 }
 
+// SetMCPResourceProvider sets a callback that returns MCP resource suggestions
+// for the @ autocomplete popup. Called by the parent after construction.
+func (s *InputComponent) SetMCPResourceProvider(fn func() []FileSuggestion) {
+	s.mcpResources = fn
+}
+
 // Init implements tea.Model. Starts the cursor blink animation.
 func (s *InputComponent) Init() tea.Cmd {
 	return textarea.Blink
@@ -190,7 +201,7 @@ func (s *InputComponent) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 	case tea.KeyPressMsg:
 		if !s.showPopup {
 			switch msg.String() {
-			case "ctrl+d", "enter":
+			case "enter":
 				value := s.textarea.Value()
 				s.pushHistory(value)
 				s.textarea.SetValue("")
@@ -285,16 +296,25 @@ func (s *InputComponent) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 						s.textarea.CursorEnd()
 						return s, nil
 					}
+					selectedCmd := s.filtered[s.selected].Command
 					// Populate textarea with selected item and submit on next tick.
 					if s.argMode {
-						s.textarea.SetValue(s.argCommand + " " + s.filtered[s.selected].Command.Name)
+						s.textarea.SetValue(s.argCommand + " " + selectedCmd.Name)
 					} else {
-						s.textarea.SetValue(s.filtered[s.selected].Command.Name)
+						s.textarea.SetValue(selectedCmd.Name)
 					}
 					s.textarea.CursorEnd()
 					s.showPopup = false
 					s.selected = 0
-					s.submitNext = true
+					// If the selected command expects arguments, populate
+					// the input with the command + trailing space so the
+					// user can type args, instead of auto-submitting.
+					if !s.argMode && selectedCmd.HasArgs {
+						s.textarea.SetValue(selectedCmd.Name + " ")
+						s.textarea.CursorEnd()
+					} else {
+						s.submitNext = true
+					}
 					return s, nil
 				}
 				return s, nil
@@ -323,9 +343,46 @@ func (s *InputComponent) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 
 			// Check for @file trigger first.
 			cursorCol := len(line) // approximate: cursor is at end after typing
-			if hasAt, prefix, atIdx := ExtractAtPrefix(line, cursorCol); hasAt && s.cwd != "" {
-				suggestions := GetFileSuggestions(prefix, s.cwd)
+			if hasAt, prefix, atIdx := ExtractAtPrefix(line, cursorCol); hasAt {
+				var suggestions []FileSuggestion
+
+				// Local file suggestions (only if cwd is set).
+				if s.cwd != "" {
+					suggestions = GetFileSuggestions(prefix, s.cwd)
+				}
+
+				// MCP resource suggestions — merge with file suggestions.
+				if s.mcpResources != nil {
+					mcpSuggestions := s.mcpResources()
+					if prefix != "" {
+						// Fuzzy-filter MCP resources against the typed prefix.
+						queryLower := strings.ToLower(prefix)
+						var filtered []FileSuggestion
+						for _, r := range mcpSuggestions {
+							score := scoreFilePath(queryLower, r.RelPath)
+							if score <= 0 {
+								// Also try matching against the resource name without prefix.
+								score = scoreFilePath(queryLower, r.MCPServerName+"/"+r.RelPath)
+							}
+							if score > 0 {
+								r.Score = score
+								filtered = append(filtered, r)
+							}
+						}
+						mcpSuggestions = filtered
+					}
+					suggestions = append(suggestions, mcpSuggestions...)
+				}
+
 				if len(suggestions) > 0 {
+					// Sort by score descending, cap at maxFileSuggestions.
+					sort.Slice(suggestions, func(i, j int) bool {
+						return suggestions[i].Score > suggestions[j].Score
+					})
+					if len(suggestions) > maxFileSuggestions {
+						suggestions = suggestions[:maxFileSuggestions]
+					}
+
 					s.showPopup = true
 					s.fileMode = true
 					s.argMode = false
@@ -339,6 +396,8 @@ func (s *InputComponent) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 						desc := ""
 						if fs.IsDir {
 							desc = "directory"
+						} else if fs.IsMCPResource {
+							desc = "mcp:" + fs.MCPServerName
 						}
 						s.fileSynthCmds[i] = commands.SlashCommand{Name: name, Description: desc}
 						s.filtered[i] = FuzzyMatch{Command: &s.fileSynthCmds[i], Score: fs.Score}
@@ -521,12 +580,14 @@ func (s *InputComponent) View() tea.View {
 			} else {
 				hint = "^X s steer"
 			}
+		} else if availableHintWidth >= 80 {
+			hint = "enter submit • ctrl+j / shift+enter new line • ctrl+x e editor • ctrl+v paste image"
 		} else if availableHintWidth >= 67 {
-			hint = "enter submit • ctrl+j / shift+enter new line • ctrl+v paste image"
+			hint = "enter submit • ctrl+j new line • ctrl+x e editor • ctrl+v image"
 		} else if availableHintWidth >= 40 {
-			hint = "↵ submit • ctrl+j newline • ctrl+v image"
+			hint = "↵ submit • ctrl+j newline • ^X e editor"
 		} else if availableHintWidth >= 20 {
-			hint = "↵ submit • ctrl+j"
+			hint = "↵ submit • ^X e editor"
 		} else {
 			hint = "↵ submit"
 		}
@@ -647,9 +708,25 @@ func (s *InputComponent) renderPopupWithOptions(centered bool) string {
 				}
 				content = indicator + displayName
 			} else {
-				nameWidth := 15
-				if innerWidth < 25 {
-					nameWidth = max(innerWidth*2/5+1, 8)
+				// Compute nameWidth from the longest command name in the
+				// visible slice so we never truncate unnecessarily.
+				nameWidth := 0
+				for _, fm := range s.filtered {
+					if n := len([]rune(fm.Command.Name)); n > nameWidth {
+						nameWidth = n
+					}
+				}
+				nameWidth += 3 // account for indicator prefix (2) + gap before description (1)
+				// Ensure descriptions still get at least 20 chars when possible.
+				maxForName := innerWidth - 20
+				if maxForName < 8 {
+					maxForName = innerWidth * 2 / 3
+				}
+				if nameWidth > maxForName {
+					nameWidth = maxForName
+				}
+				if nameWidth < 8 {
+					nameWidth = 8
 				}
 				maxNameChars := nameWidth - 2
 				displayName := sc.Name
@@ -782,9 +859,25 @@ func (s *InputComponent) PendingImageCount() int {
 	return len(s.pendingImages)
 }
 
+// Clear clears the textarea content and resets related state. Returns true if
+// there was content to clear, false if the input was already empty.
+func (s *InputComponent) Clear() bool {
+	hadContent := s.textarea.Value() != ""
+	s.textarea.SetValue("")
+	s.textarea.CursorEnd()
+	s.lastValue = ""
+	s.showPopup = false
+	s.argMode = false
+	s.fileMode = false
+	s.browsingHistory = false
+	s.savedInput = ""
+	return hadContent
+}
+
 // applyFileCompletion replaces the @prefix in the textarea with the selected
-// file suggestion. For directories, it keeps the popup open for further
-// drilling. For files, it closes the popup and adds a trailing space.
+// file or MCP resource suggestion. For directories, it keeps the popup open
+// for further drilling. For files and resources, it closes the popup and adds
+// a trailing space.
 func (s *InputComponent) applyFileCompletion(idx int) {
 	if idx >= len(s.fileSuggestions) {
 		return
@@ -801,19 +894,30 @@ func (s *InputComponent) applyFileCompletion(idx int) {
 
 	// Reconstruct: everything before the @ on the last line + @<path>
 	beforeAt := lastLine[:s.fileAtStartIdx]
-	needsQuote := strings.Contains(suggestion.RelPath, " ")
 
 	var replacement string
-	if needsQuote {
-		replacement = `@"` + suggestion.RelPath + `"`
-	} else {
-		replacement = "@" + suggestion.RelPath
-	}
-
-	// For files, add a trailing space. For directories, don't — allow
-	// continued drilling into the directory.
-	if !suggestion.IsDir {
+	if suggestion.IsMCPResource {
+		// MCP resources use @mcp:server:uri format.
+		// Quote if the URI contains spaces.
+		ref := "mcp:" + suggestion.MCPServerName + ":" + suggestion.MCPResourceURI
+		if strings.Contains(ref, " ") {
+			replacement = `@"` + ref + `"`
+		} else {
+			replacement = "@" + ref
+		}
 		replacement += " "
+	} else {
+		needsQuote := strings.Contains(suggestion.RelPath, " ")
+		if needsQuote {
+			replacement = `@"` + suggestion.RelPath + `"`
+		} else {
+			replacement = "@" + suggestion.RelPath
+		}
+		// For files, add a trailing space. For directories, don't — allow
+		// continued drilling into the directory.
+		if !suggestion.IsDir {
+			replacement += " "
+		}
 	}
 
 	newLastLine := beforeAt + replacement
@@ -825,7 +929,7 @@ func (s *InputComponent) applyFileCompletion(idx int) {
 	s.textarea.SetValue(newValue)
 	s.textarea.CursorEnd()
 
-	if suggestion.IsDir {
+	if suggestion.IsDir && !suggestion.IsMCPResource {
 		// Keep popup open — trigger a refresh for the new directory.
 		s.lastValue = "" // force re-evaluation on next update tick
 	} else {

internal/ui/model.go

@@ -12,6 +12,7 @@ import (
 
 	tea "charm.land/bubbletea/v2"
 	"charm.land/lipgloss/v2"
+	"github.com/charmbracelet/x/editor"
 	"github.com/spf13/viper"
 
 	"github.com/mark3labs/kit/internal/app"
@@ -133,6 +134,34 @@ type SkillItem struct {
 	Source string // "project" or "user" (global).
 }
 
+// MCPPromptInfo describes an MCP prompt for display in the TUI (autocomplete,
+// help). This is a pure UI type — it carries no MCP client dependencies.
+type MCPPromptInfo struct {
+	Name        string             // Prompt name on the MCP server.
+	Description string             // Human-readable description.
+	Arguments   []MCPPromptArgInfo // Expected arguments.
+	ServerName  string             // Owning MCP server name.
+}
+
+// MCPPromptArgInfo describes an argument for an MCP prompt.
+type MCPPromptArgInfo struct {
+	Name        string
+	Description string
+	Required    bool
+}
+
+// MCPPromptExpandResult is the result of lazily expanding an MCP prompt.
+type MCPPromptExpandResult struct {
+	Messages []MCPPromptMessageInfo
+}
+
+// MCPPromptMessageInfo is a single message from an expanded MCP prompt.
+type MCPPromptMessageInfo struct {
+	Role      string // "user" or "assistant"
+	Content   string
+	FileParts []kit.LLMFilePart
+}
+
 // ToolRendererData holds extension-provided rendering functions for a specific
 // tool. The UI layer uses this to override the default tool header/body
 // rendering without depending on the extensions package directly.
@@ -309,6 +338,19 @@ type AppModelOptions struct {
 	// watcher detects changes. May be nil if prompt hot-reload is not needed.
 	GetPromptTemplates func() []*prompts.PromptTemplate
 
+	// MCPPrompts are prompts discovered from MCP servers at startup.
+	// They appear in autocomplete as /<server>:<prompt> commands.
+	MCPPrompts []MCPPromptInfo
+
+	// GetMCPPrompts, if non-nil, returns the current MCP prompts.
+	// Called on MCPToolsReadyEvent to refresh after background loading.
+	GetMCPPrompts func() []MCPPromptInfo
+
+	// ExpandMCPPrompt, if non-nil, lazily expands an MCP prompt by
+	// calling the MCP server's GetPrompt. Called asynchronously when the
+	// user invokes an MCP prompt slash command.
+	ExpandMCPPrompt func(serverName, promptName string, args map[string]string) (*MCPPromptExpandResult, error)
+
 	// ContextPaths lists absolute paths of loaded context files (e.g.
 	// AGENTS.md). Displayed in the [Context] startup section.
 	ContextPaths []string
@@ -424,6 +466,15 @@ type AppModelOptions struct {
 	IsReasoningModel bool
 	// SetThinkingLevel changes the thinking level on the agent/provider.
 	SetThinkingLevel func(level string) error
+
+	// GetMCPResources, if non-nil, returns FileSuggestion entries for all
+	// MCP resources available from connected servers. Used by the @
+	// autocomplete popup to merge resource suggestions with local files.
+	GetMCPResources func() []FileSuggestion
+
+	// MCPResourceReader, if non-nil, reads an MCP resource by server name
+	// and URI. Used at submit time to resolve @mcp:server:uri tokens.
+	MCPResourceReader fileutil.MCPResourceReader
 }
 
 // AppModel is the root Bubble Tea model for the interactive TUI. It owns the
@@ -533,6 +584,17 @@ type AppModel struct {
 	// refresh the template list after content hot-reload. May be nil.
 	getPromptTemplates func() []*prompts.PromptTemplate
 
+	// mcpPrompts are prompts discovered from MCP servers, shown as
+	// /<server>:<prompt> slash commands.
+	mcpPrompts []MCPPromptInfo
+
+	// getMCPPrompts returns the current MCP prompts. Called on
+	// MCPToolsReadyEvent to refresh after background loading.
+	getMCPPrompts func() []MCPPromptInfo
+
+	// expandMCPPrompt lazily expands an MCP prompt via the server.
+	expandMCPPrompt func(serverName, promptName string, args map[string]string) (*MCPPromptExpandResult, error)
+
 	// treeSelector is the tree navigation overlay, active in stateTreeSelector.
 	treeSelector *TreeSelectorComponent
 
@@ -646,6 +708,10 @@ type AppModel struct {
 	// cwd is the working directory for @file path resolution.
 	cwd string
 
+	// mcpResourceReader is an optional callback to read MCP resources when
+	// processing @mcp:server:uri tokens at submit time. Set by the parent.
+	mcpResourceReader fileutil.MCPResourceReader
+
 	// width and height track the terminal dimensions.
 	width  int
 	height int
@@ -654,6 +720,10 @@ type AppModel struct {
 	// disables alt screen to restore the terminal properly.
 	quitting bool
 
+	// ctrlCPressedOnce tracks if Ctrl+C was pressed once to clear input.
+	// A second Ctrl+C (or Ctrl+C when input is empty) will quit the app.
+	ctrlCPressedOnce bool
+
 	// streamingBashOutput holds the current streaming bash output lines.
 	// Lines are accumulated as they arrive and displayed in the stream region.
 	streamingBashOutput []string
@@ -761,6 +831,9 @@ func NewAppModel(appCtrl AppController, opts AppModelOptions) *AppModel {
 	m.extensionCommands = opts.ExtensionCommands
 	m.promptTemplates = opts.PromptTemplates
 	m.getPromptTemplates = opts.GetPromptTemplates
+	m.mcpPrompts = opts.MCPPrompts
+	m.getMCPPrompts = opts.GetMCPPrompts
+	m.expandMCPPrompt = opts.ExpandMCPPrompt
 	m.getWidgets = opts.GetWidgets
 	m.getHeader = opts.GetHeader
 	m.getFooter = opts.GetFooter
@@ -800,13 +873,21 @@ func NewAppModel(appCtrl AppController, opts AppModelOptions) *AppModel {
 	m.messages = []MessageItem{}
 
 	// Wire up child components now that we have the concrete implementations.
-	m.input = NewInputComponent(width, "Enter your prompt (Type /help for commands, Ctrl+C to quit)", appCtrl)
+	m.input = NewInputComponent(width, "Enter your prompt (Type /help for commands, Ctrl+C to clear input, Ctrl+C again to quit)", appCtrl)
 
 	// Wire up cwd for @file autocomplete.
 	if ic, ok := m.input.(*InputComponent); ok && opts.Cwd != "" {
 		ic.SetCwd(opts.Cwd)
 	}
 
+	// Wire up MCP resource provider for @ autocomplete.
+	if ic, ok := m.input.(*InputComponent); ok && opts.GetMCPResources != nil {
+		ic.SetMCPResourceProvider(opts.GetMCPResources)
+	}
+
+	// Wire up MCP resource reader for @mcp: token processing at submit time.
+	m.mcpResourceReader = opts.MCPResourceReader
+
 	// Merge extension commands into the InputComponent's autocomplete source.
 	if ic, ok := m.input.(*InputComponent); ok && len(opts.ExtensionCommands) > 0 {
 		for _, ec := range opts.ExtensionCommands {
@@ -826,6 +907,26 @@ func NewAppModel(appCtrl AppController, opts AppModelOptions) *AppModel {
 				Name:        "/" + tpl.Name,
 				Description: tpl.Description,
 				Category:    "Prompts",
+				HasArgs:     tpl.HasArgPlaceholders(),
+			})
+		}
+	}
+
+	// Merge MCP prompts into autocomplete as /<server>:<prompt> commands.
+	if ic, ok := m.input.(*InputComponent); ok && len(opts.MCPPrompts) > 0 {
+		for _, p := range opts.MCPPrompts {
+			hasArgs := false
+			for _, a := range p.Arguments {
+				if a.Required {
+					hasArgs = true
+					break
+				}
+			}
+			ic.commands = append(ic.commands, commands.SlashCommand{
+				Name:        fmt.Sprintf("/%s:%s", p.ServerName, p.Name),
+				Description: p.Description,
+				Category:    "MCP Prompts",
+				HasArgs:     hasArgs,
 			})
 		}
 	}
@@ -1041,6 +1142,31 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 		m.state = stateInput
 		if m.setModel != nil {
 			previousModel := m.providerName + "/" + m.modelName
+
+			// Check if thinking level needs adjustment for the new model.
+			// Some models (e.g., OpenAI gpt-5.4) don't support "minimal" and require "none".
+			if m.thinkingLevel != "" && m.thinkingLevel != "off" {
+				parts := strings.SplitN(msg.ModelString, "/", 2)
+				if len(parts) == 2 {
+					modelName := parts[1]
+					currentLevel := models.ParseThinkingLevel(m.thinkingLevel)
+					if !models.IsValidThinkingLevelForModel(currentLevel, modelName) {
+						fallback := models.SuggestThinkingLevelFallback(currentLevel, modelName)
+						if fallback != models.ThinkingOff {
+							m.printSystemMessage(fmt.Sprintf(
+								"Note: Model %s doesn't support '%s' thinking level. Adjusted to '%s'.",
+								modelName, currentLevel, fallback,
+							))
+							m.thinkingLevel = string(fallback)
+							if m.setThinkingLevel != nil {
+								_ = m.setThinkingLevel(string(fallback))
+							}
+							go func() { _ = prefs.SaveThinkingLevelPreference(string(fallback)) }()
+						}
+					}
+				}
+			}
+
 			if err := m.setModel(msg.ModelString); err != nil {
 				m.printSystemMessage(fmt.Sprintf("Failed to switch model: %v", err))
 			} else {
@@ -1186,6 +1312,19 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 				m.overlayResponseCh = nil
 				m.overlay = nil
 			}
+
+			// Check if we should clear input first (on first Ctrl+C when input has content).
+			if m.state == stateInput && !m.ctrlCPressedOnce {
+				if ic, ok := m.input.(*InputComponent); ok {
+					if hadContent := ic.Clear(); hadContent {
+						// Input was cleared. Set flag so next Ctrl+C will quit.
+						m.ctrlCPressedOnce = true
+						// Start reset timer so the flag clears after 3 seconds.
+						return m, ctrlCResetCmd()
+					}
+				}
+			}
+
 			// Set quitting flag so View() disables alt screen for clean exit.
 			m.quitting = true
 			// Graceful quit: app.Close() is deferred in cmd/root.go.
@@ -1221,11 +1360,11 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 					m.scrollList.autoScroll = true
 				}
 				return m, tea.Batch(cmds...)
-			case "alt+home":
+			case "ctrl+home":
 				m.scrollList.GotoTop()
 				m.scrollList.autoScroll = false
 				return m, tea.Batch(cmds...)
-			case "alt+end":
+			case "ctrl+end":
 				m.scrollList.GotoBottom()
 				m.scrollList.autoScroll = true
 				return m, tea.Batch(cmds...)
@@ -1233,15 +1372,10 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 		}
 
 		// Thinking keybindings — only when the model supports reasoning.
+		// Note: thinking visibility toggle is under leader chord (Ctrl+X t)
+		// to avoid conflicts with terminal multiplexers.
 		if m.isReasoningModel {
 			switch msg.String() {
-			case "ctrl+t":
-				// Toggle thinking block visibility.
-				m.thinkingVisible = !m.thinkingVisible
-				if m.stream != nil {
-					m.stream.SetThinkingVisible(m.thinkingVisible)
-				}
-				return m, tea.Batch(cmds...)
 			case "shift+tab":
 				// Cycle thinking level.
 				m.cycleThinkingLevel()
@@ -1297,14 +1431,23 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 							images = ic.ClearPendingImages()
 						}
 
-						// Preprocess @file references.
+						// Preprocess @file references (text files are XML-inlined,
+						// binary files are extracted as multimodal parts).
 						processedText := text
+						var fileParts []kit.LLMFilePart
 						if m.cwd != "" {
-							processedText = fileutil.ProcessFileAttachments(text, m.cwd)
+							result := fileutil.ProcessFileAttachments(text, m.cwd, m.mcpResourceReader)
+							processedText = result.ProcessedText
+							for _, fp := range result.FileParts {
+								fileParts = append(fileParts, kit.LLMFilePart{
+									Filename:  fp.Filename,
+									Data:      fp.Data,
+									MediaType: fp.MediaType,
+								})
+							}
 						}
 
-						// Convert image attachments to kit.LLMFilePart for the app layer.
-						var fileParts []kit.LLMFilePart
+						// Convert clipboard image attachments to kit.LLMFilePart.
 						for _, img := range images {
 							fileParts = append(fileParts, kit.LLMFilePart{
 								Data:      img.Data,
@@ -1333,6 +1476,53 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 						}
 					}
 				}
+			case "t":
+				// Ctrl+X t → Toggle thinking block visibility.
+				if m.isReasoningModel {
+					m.thinkingVisible = !m.thinkingVisible
+					if m.stream != nil {
+						m.stream.SetThinkingVisible(m.thinkingVisible)
+					}
+				}
+			case "e":
+				// Ctrl+X e → open $EDITOR to compose/edit the prompt.
+				editorApp := os.Getenv("VISUAL")
+				if editorApp == "" {
+					editorApp = os.Getenv("EDITOR")
+				}
+				if editorApp == "" {
+					m.printSystemMessage("Set `$EDITOR` or `$VISUAL` to use external editor")
+				} else {
+					var currentText string
+					if ic, ok := m.input.(*InputComponent); ok {
+						currentText = ic.textarea.Value()
+					}
+					tmpFile, err := os.CreateTemp("", "kit_prompt_*.md")
+					if err == nil {
+						if currentText != "" {
+							_, _ = tmpFile.WriteString(currentText)
+						}
+						_ = tmpFile.Close()
+						editorCmd, cmdErr := editor.Command(editorApp, tmpFile.Name())
+						if cmdErr != nil {
+							_ = os.Remove(tmpFile.Name())
+							m.printSystemMessage(fmt.Sprintf("Failed to open editor: %v", cmdErr))
+						} else {
+							cmds = append(cmds, tea.ExecProcess(editorCmd, func(err error) tea.Msg {
+								if err != nil {
+									_ = os.Remove(tmpFile.Name())
+									return externalEditorMsg{err: err}
+								}
+								content, readErr := os.ReadFile(tmpFile.Name())
+								_ = os.Remove(tmpFile.Name())
+								if readErr != nil {
+									return externalEditorMsg{err: readErr}
+								}
+								return externalEditorMsg{text: string(content)}
+							}))
+						}
+					}
+				}
 			}
 			// Chord consumed — don't propagate to children.
 			return m, tea.Batch(cmds...)
@@ -1416,10 +1606,16 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 	case uicore.CancelTimerExpiredMsg:
 		m.canceling = false
 
+	// ── Ctrl+C reset timer expired ────────────────────────────────────────────
+	case uicore.CtrlCResetMsg:
+		m.ctrlCPressedOnce = false
+
 	// ── Input submitted ──────────────────────────────────────────────────────
 	case uicore.SubmitMsg:
 		// Re-enable auto-scroll when user submits a new message.
 		m.scrollList.autoScroll = true
+		// Reset Ctrl+C flag so next Ctrl+C clears input instead of quitting.
+		m.ctrlCPressedOnce = false
 
 		// Handle slash commands locally — they should never reach app.Run().
 		// Parse once: split on the first space so argument-bearing commands
@@ -1442,23 +1638,46 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 			return m, tea.Batch(cmds...)
 		}
 
+		// Check MCP prompt commands (/<server>:<prompt> [args]).
+		if cmd := m.handleMCPPromptCommand(msg.Text); cmd != nil {
+			cmds = append(cmds, cmd)
+			return m, tea.Batch(cmds...)
+		}
+
 		// Expand prompt templates. If the input matches a template name,
 		// substitute arguments and use the expanded content as the prompt.
-		if expanded, ok := m.expandPromptTemplate(msg.Text); ok {
+		if expanded, ok, validationErr := m.expandPromptTemplate(msg.Text); validationErr != "" {
+			// Validation failed — re-populate the input so the user can
+			// append the missing arguments without retyping.
+			if ic, ok := m.input.(*InputComponent); ok {
+				ic.textarea.SetValue(msg.Text + " ")
+				ic.textarea.CursorEnd()
+			}
+			return m, tea.Batch(cmds...)
+		} else if ok {
 			msg.Text = expanded
 		}
 
 		// Regular prompt — forward to the app layer.
-		// Preprocess @file references: expand them into XML-wrapped file
-		// content before sending to the agent. The display text (shown in
-		// ScrollList) uses the original user text so the UI stays clean.
+		// Preprocess @file references: text files are XML-inlined, binary files
+		// (images, audio, etc.) are extracted as multimodal parts. The display
+		// text (shown in ScrollList) uses the original user text so the UI stays clean.
 		processedText := msg.Text
+		var fileParts []kit.LLMFilePart
 		if m.cwd != "" {
-			processedText = fileutil.ProcessFileAttachments(msg.Text, m.cwd)
+			result := fileutil.ProcessFileAttachments(msg.Text, m.cwd, m.mcpResourceReader)
+			processedText = result.ProcessedText
+			for _, fp := range result.FileParts {
+				fileParts = append(fileParts, kit.LLMFilePart{
+					Filename:  fp.Filename,
+					Data:      fp.Data,
+					MediaType: fp.MediaType,
+				})
+			}
 		}
 
-		// Convert image attachments to kit.LLMFilePart for the app layer.
-		var fileParts []kit.LLMFilePart
+		// Convert clipboard image attachments to kit.LLMFilePart.
+		fileOnlyCount := len(fileParts) // binary @file parts (before clipboard images)
 		for _, img := range msg.Images {
 			fileParts = append(fileParts, kit.LLMFilePart{
 				Data:      img.Data,
@@ -1466,10 +1685,17 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 			})
 		}
 
-		// Build display text for ScrollList (include image count if any).
+		// Build display text for ScrollList (include attachment counts).
 		displayText := msg.Text
-		if len(msg.Images) > 0 {
-			displayText = fmt.Sprintf("%s\n[%d image(s) attached]", msg.Text, len(msg.Images))
+		if len(msg.Images) > 0 || fileOnlyCount > 0 {
+			var badges []string
+			if len(msg.Images) > 0 {
+				badges = append(badges, fmt.Sprintf("%d image(s) pasted", len(msg.Images)))
+			}
+			if fileOnlyCount > 0 {
+				badges = append(badges, fmt.Sprintf("%d file(s) attached", fileOnlyCount))
+			}
+			displayText = fmt.Sprintf("%s\n[%s]", msg.Text, strings.Join(badges, ", "))
 		}
 
 		if m.appCtrl != nil {
@@ -1820,6 +2046,12 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 		// Refresh content to show the finalized message.
 		m.refreshContent()
 
+		// Reset context token display — the pre-compaction count is stale.
+		// The next API call will set the accurate post-compaction value.
+		if m.usageTracker != nil {
+			m.usageTracker.SetContextTokens(0)
+		}
+
 		// Print stats as a separate system message.
 		saved := msg.OriginalTokens - msg.CompactedTokens
 		statsMsg := fmt.Sprintf(
@@ -1879,9 +2111,10 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 		m.printSystemMessage("Prompts and skills reloaded.")
 
 	case app.MCPToolsReadyEvent:
-		// Background MCP tool loading completed — refresh tool names and count.
+		// Background MCP tool loading completed — refresh tool names, count, and prompts.
 		m.refreshToolNames()
 		m.refreshMCPToolCount()
+		m.refreshMCPPrompts()
 
 	case app.MCPServerLoadedEvent:
 		// A single MCP server finished loading — display a system message.
@@ -1900,6 +2133,39 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 			ic.textarea.CursorEnd()
 		}
 
+	case app.PasswordPromptEvent:
+		// Sudo password prompt - show a modal input prompt
+		// If already in prompt state, cancel the new request
+		if m.state == statePrompt {
+			if msg.ResponseCh != nil {
+				msg.ResponseCh <- app.PasswordPromptResponse{Cancelled: true}
+			}
+			return m, tea.Batch(cmds...)
+		}
+		m.prePromptState = m.state
+		m.state = statePrompt
+		// Create a custom response channel that converts PasswordPromptResponse
+		passwordResponseCh := make(chan app.PromptResponse, 1)
+		m.promptResponseCh = passwordResponseCh
+
+		// Create password input prompt (masked input)
+		m.prompt = newPasswordPrompt(msg.Prompt, m.width, m.height)
+
+		// Handle the response conversion
+		go func() {
+			resp := <-passwordResponseCh
+			if msg.ResponseCh != nil {
+				msg.ResponseCh <- app.PasswordPromptResponse{
+					Password:  resp.Value,
+					Cancelled: resp.Cancelled,
+				}
+			}
+		}()
+
+		if m.prompt != nil {
+			cmds = append(cmds, m.prompt.Init())
+		}
+
 	case app.PromptRequestEvent:
 		// Extension wants to show an interactive prompt. Enter prompt state.
 		// If already in prompt state (concurrent prompt from another
@@ -1967,6 +2233,88 @@ func (m *AppModel) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 			m.printSystemMessage(msg.output)
 		}
 
+	case mcpPromptResultMsg:
+		// Async MCP prompt expansion completed. Submit the expanded text
+		// as a user message (same behavior as local prompt templates).
+		if msg.err != nil {
+			m.printSystemMessage(fmt.Sprintf("MCP prompt error: %v", msg.err))
+		} else if msg.text != "" || len(msg.fileParts) > 0 {
+			// Process @file references and submit.
+			processedText := msg.text
+			var fileParts []kit.LLMFilePart
+			if m.cwd != "" {
+				result := fileutil.ProcessFileAttachments(msg.text, m.cwd, m.mcpResourceReader)
+				processedText = result.ProcessedText
+				for _, fp := range result.FileParts {
+					fileParts = append(fileParts, kit.LLMFilePart{
+						Filename:  fp.Filename,
+						Data:      fp.Data,
+						MediaType: fp.MediaType,
+					})
+				}
+			}
+			// Merge file parts from embedded resources (images, audio, blobs)
+			// with any @file/@mcp: file parts extracted from the text.
+			fileParts = append(fileParts, msg.fileParts...)
+
+			// Build display text with attachment badges (matches the
+			// normal submit path so embedded resources look like pasted
+			// images / attached files).
+			displayText := msg.text
+			if len(msg.fileParts) > 0 {
+				var imageCount, fileCount int
+				for _, fp := range msg.fileParts {
+					if strings.HasPrefix(fp.MediaType, "image/") {
+						imageCount++
+					} else {
+						fileCount++
+					}
+				}
+				var badges []string
+				if imageCount > 0 {
+					badges = append(badges, fmt.Sprintf("%d image(s) attached", imageCount))
+				}
+				if fileCount > 0 {
+					badges = append(badges, fmt.Sprintf("%d file(s) attached", fileCount))
+				}
+				if len(badges) > 0 {
+					displayText = fmt.Sprintf("%s\n[%s]", msg.text, strings.Join(badges, ", "))
+				}
+			}
+
+			if m.appCtrl != nil {
+				var qLen int
+				if len(fileParts) > 0 {
+					qLen = m.appCtrl.RunWithFiles(processedText, fileParts)
+				} else {
+					qLen = m.appCtrl.Run(processedText)
+				}
+				if qLen > 0 {
+					m.queuedMessages = append(m.queuedMessages, displayText)
+					m.layoutDirty = true
+				} else {
+					m.pendingUserPrints = append(m.pendingUserPrints, displayText)
+					m.flushStreamAndPendingUserMessages()
+				}
+				if m.state != stateWorking {
+					m.state = stateWorking
+				}
+			}
+		}
+
+	case externalEditorMsg:
+		// User returned from $EDITOR. Replace input textarea content with
+		// whatever they saved in the temp file. On error (e.g. :cq in vim)
+		// the original input is silently preserved.
+		if msg.err == nil {
+			if ic, ok := m.input.(*InputComponent); ok {
+				ic.textarea.SetValue(msg.text)
+				// Move cursor to the end of the inserted text.
+				ic.textarea.CursorEnd()
+			}
+			m.layoutDirty = true
+		}
+
 	case extReloadResultMsg:
 		if msg.err != nil {
 			m.printSystemMessage(fmt.Sprintf("Extension reload failed: %v", msg.err))
@@ -2333,7 +2681,7 @@ func (m *AppModel) renderStatusBar() string {
 
 // cycleThinkingLevel advances to the next thinking level and applies it.
 func (m *AppModel) cycleThinkingLevel() {
-	levels := []string{"off", "minimal", "low", "medium", "high"}
+	levels := []string{"off", "none", "minimal", "low", "medium", "high"}
 	current := m.thinkingLevel
 	if current == "" {
 		current = "off"
@@ -2824,17 +3172,131 @@ func (m *AppModel) handleExtensionCommand(text string) tea.Cmd {
 	return noopCmd
 }
 
+// handleMCPPromptCommand checks if the submitted text matches an MCP prompt
+// command (/<server>:<prompt> [args]) and returns a tea.Cmd that expands it
+// asynchronously. Returns nil if no MCP prompt matches.
+//
+// Arguments are parsed as key=value pairs. Positional arguments are mapped
+// to prompt argument names by order.
+func (m *AppModel) handleMCPPromptCommand(text string) tea.Cmd {
+	if len(m.mcpPrompts) == 0 || m.expandMCPPrompt == nil {
+		return nil
+	}
+
+	if !strings.HasPrefix(text, "/") {
+		return nil
+	}
+
+	// Split: "/<server>:<prompt> key=val ..." → command, args
+	cmdPart, argStr, _ := strings.Cut(text, " ")
+	cmdPart = strings.TrimPrefix(cmdPart, "/")
+
+	// Must contain a colon to be an MCP prompt command.
+	serverName, promptName, ok := strings.Cut(cmdPart, ":")
+	if !ok || serverName == "" || promptName == "" {
+		return nil
+	}
+
+	// Find matching MCP prompt.
+	var matched *MCPPromptInfo
+	for i := range m.mcpPrompts {
+		if m.mcpPrompts[i].ServerName == serverName && m.mcpPrompts[i].Name == promptName {
+			matched = &m.mcpPrompts[i]
+			break
+		}
+	}
+	if matched == nil {
+		return nil
+	}
+
+	// Parse arguments: support key=value pairs, with positional fallback.
+	args := parseMCPPromptArgs(argStr, matched.Arguments)
+
+	// Validate required arguments.
+	for _, a := range matched.Arguments {
+		if a.Required {
+			if _, exists := args[a.Name]; !exists {
+				m.printSystemMessage(fmt.Sprintf(
+					"/%s:%s requires argument '%s'",
+					serverName, promptName, a.Name,
+				))
+				// Re-populate input for the user to add missing args.
+				if ic, ok := m.input.(*InputComponent); ok {
+					ic.textarea.SetValue(text + " ")
+					ic.textarea.CursorEnd()
+				}
+				return noopCmd
+			}
+		}
+	}
+
+	// Expand asynchronously.
+	expand := m.expandMCPPrompt
+	ctrl := m.appCtrl
+	go func() {
+		result, err := expand(serverName, promptName, args)
+		if err != nil {
+			ctrl.SendEvent(mcpPromptResultMsg{err: err})
+			return
+		}
+		// Concatenate user-role messages as the prompt text and collect
+		// any binary attachments from embedded resources.
+		var parts []string
+		var allFileParts []kit.LLMFilePart
+		for _, msg := range result.Messages {
+			if msg.Role == "user" {
+				if msg.Content != "" {
+					parts = append(parts, msg.Content)
+				}
+				allFileParts = append(allFileParts, msg.FileParts...)
+			}
+		}
+		ctrl.SendEvent(mcpPromptResultMsg{
+			text:      strings.Join(parts, "\n\n"),
+			fileParts: allFileParts,
+		})
+	}()
+
+	return noopCmd
+}
+
+// parseMCPPromptArgs parses "key=value" pairs from a space-separated arg
+// string. Tokens without "=" are assigned to prompt arguments positionally.
+func parseMCPPromptArgs(argStr string, argDefs []MCPPromptArgInfo) map[string]string {
+	result := make(map[string]string)
+	if strings.TrimSpace(argStr) == "" {
+		return result
+	}
+
+	tokens := strings.Fields(argStr)
+	positionalIdx := 0
+	for _, tok := range tokens {
+		if k, v, ok := strings.Cut(tok, "="); ok && k != "" {
+			result[k] = v
+		} else if positionalIdx < len(argDefs) {
+			result[argDefs[positionalIdx].Name] = tok
+			positionalIdx++
+		}
+	}
+	return result
+}
+
 // expandPromptTemplate checks if the submitted text matches a prompt template
 // and returns the expanded content with arguments substituted.
-// Returns (expanded, true) if a template was found and expanded, (text, false) otherwise.
-func (m *AppModel) expandPromptTemplate(text string) (string, bool) {
+//
+// Return values:
+//   - (expanded, true, "") — template matched and expanded successfully
+//   - (text, false, "")   — no template matched; caller should treat text as-is
+//   - ("", false, reason) — template matched but validation failed; reason
+//     contains a user-facing error message (already printed to ScrollList)
+func (m *AppModel) expandPromptTemplate(text string) (string, bool, string) {
 	if len(m.promptTemplates) == 0 {
-		return text, false
+		return text, false, ""
 	}
 
 	// Only consider inputs that look like slash commands.
 	if !strings.HasPrefix(text, "/") {
-		return text, false
+		return text, false, ""
 	}
 
 	// Split: "/templatename arg1 arg2" → name="/templatename", args="arg1 arg2"
@@ -2844,11 +3306,24 @@ func (m *AppModel) expandPromptTemplate(text string) (string, bool) {
 	// Find matching template
 	for _, tpl := range m.promptTemplates {
 		if tpl.Name == name {
-			return tpl.Expand(args), true
+			// Validate that enough positional arguments were provided.
+			required := tpl.RequiredArgs()
+			if required > 0 {
+				provided := len(prompts.ParseCommandArgs(args))
+				if provided < required {
+					reason := fmt.Sprintf(
+						"/%s requires %d argument(s), got %d",
+						name, required, provided,
+					)
+					m.printSystemMessage(reason)
+					return "", false, reason
+				}
+			}
+			return tpl.Expand(args), true, ""
 		}
 	}
 
-	return text, false
+	return text, false, ""
 }
 
 // refreshPromptTemplates reloads prompt templates from the provider callback
@@ -2873,6 +3348,7 @@ func (m *AppModel) refreshPromptTemplates() {
 				Name:        "/" + tpl.Name,
 				Description: tpl.Description,
 				Category:    "Prompts",
+				HasArgs:     tpl.HasArgPlaceholders(),
 			})
 		}
 		ic.commands = kept
@@ -2888,6 +3364,42 @@ func (m *AppModel) refreshSkillItems() {
 	m.skillItems = m.getSkillItems()
 }
 
+// refreshMCPPrompts reloads MCP prompts from the provider callback and
+// updates the autocomplete entries. Called on MCPToolsReadyEvent.
+func (m *AppModel) refreshMCPPrompts() {
+	if m.getMCPPrompts == nil {
+		return
+	}
+	newPrompts := m.getMCPPrompts()
+	m.mcpPrompts = newPrompts
+
+	if ic, ok := m.input.(*InputComponent); ok {
+		// Remove old MCP Prompts commands and add fresh ones.
+		var kept []commands.SlashCommand
+		for _, sc := range ic.commands {
+			if sc.Category != "MCP Prompts" {
+				kept = append(kept, sc)
+			}
+		}
+		for _, p := range newPrompts {
+			hasArgs := false
+			for _, a := range p.Arguments {
+				if a.Required {
+					hasArgs = true
+					break
+				}
+			}
+			kept = append(kept, commands.SlashCommand{
+				Name:        fmt.Sprintf("/%s:%s", p.ServerName, p.Name),
+				Description: p.Description,
+				Category:    "MCP Prompts",
+				HasArgs:     hasArgs,
+			})
+		}
+		ic.commands = kept
+	}
+}
+
 // refreshToolNames reloads tool names from the provider callback.
 // Called on MCPToolsReadyEvent when background MCP tool loading completes.
 func (m *AppModel) refreshToolNames() {
@@ -2958,9 +3470,10 @@ func (m *AppModel) printHelpMessage() {
 		"- `!command`: Run shell command, output included in LLM context\n" +
 		"- `!!command`: Run shell command, output excluded from LLM context\n\n" +
 		"**Keys:**\n" +
-		"- `Ctrl+C`: Exit at any time\n" +
+		"- `Ctrl+C`: Clear input (press again to exit)\n" +
 		"- `ESC` (x2): Cancel ongoing LLM generation\n" +
 		"- `Ctrl+X s`: Steer — redirect the agent mid-turn (injected between tool calls)\n" +
+		"- `Ctrl+X e`: Open `$EDITOR` to compose/edit your prompt\n" +
 		"- `Enter` (while working): Queue message for after the agent finishes\n\n" +
 		"You can also just type your message to chat with the AI assistant."
 	m.printSystemMessage(help)
@@ -3353,6 +3866,30 @@ func (m *AppModel) handleModelCommand(args string) tea.Cmd {
 		return nil
 	}
 
+	// Check if thinking level needs adjustment for the new model.
+	// Some models (e.g., OpenAI gpt-5.4) don't support "minimal" and require "none".
+	if m.thinkingLevel != "" && m.thinkingLevel != "off" {
+		parts := strings.SplitN(args, "/", 2)
+		if len(parts) == 2 {
+			modelName := parts[1]
+			currentLevel := models.ParseThinkingLevel(m.thinkingLevel)
+			if !models.IsValidThinkingLevelForModel(currentLevel, modelName) {
+				fallback := models.SuggestThinkingLevelFallback(currentLevel, modelName)
+				if fallback != models.ThinkingOff {
+					m.printSystemMessage(fmt.Sprintf(
+						"Note: Model %s doesn't support '%s' thinking level. Adjusted to '%s'.",
+						modelName, currentLevel, fallback,
+					))
+					m.thinkingLevel = string(fallback)
+					if m.setThinkingLevel != nil {
+						_ = m.setThinkingLevel(string(fallback))
+					}
+					go func() { _ = prefs.SaveThinkingLevelPreference(string(fallback)) }()
+				}
+			}
+		}
+	}
+
 	// Direct model switch with the provided model string.
 	previousModel := m.providerName + "/" + m.modelName
 	if err := m.setModel(args); err != nil {
@@ -3457,7 +3994,7 @@ func (m *AppModel) handleThinkingCommand(args string) tea.Cmd {
 	// Parse and validate the level.
 	level := models.ParseThinkingLevel(args)
 	if string(level) != strings.ToLower(args) {
-		m.printSystemMessage(fmt.Sprintf("Unknown thinking level: %q. Use: off, minimal, low, medium, high", args))
+		m.printSystemMessage(fmt.Sprintf("Unknown thinking level: %q. Use: off, none, minimal, low, medium, high", args))
 		return nil
 	}
 
@@ -4044,10 +4581,25 @@ func cancelTimerCmd() tea.Cmd {
 	})
 }
 
+// ctrlCResetCmd returns a tea.Cmd that fires CtrlCResetMsg after 3s.
+// This resets the ctrlCPressedOnce flag so the next Ctrl+C will clear input again.
+func ctrlCResetCmd() tea.Cmd {
+	return tea.Tick(3*time.Second, func(_ time.Time) tea.Msg {
+		return uicore.CtrlCResetMsg{}
+	})
+}
+
 // --------------------------------------------------------------------------
 // Interactive prompt support
 // --------------------------------------------------------------------------
 
+// externalEditorMsg is sent when the user returns from $EDITOR after
+// composing a prompt via the Ctrl+X e chord.
+type externalEditorMsg struct {
+	text string
+	err  error
+}
+
 // shareResultMsg carries the result of an async gist upload.
 type shareResultMsg struct {
 	err       error
@@ -4071,6 +4623,14 @@ type extensionCmdResultMsg struct {
 	err    error
 }
 
+// mcpPromptResultMsg carries the result of an asynchronously expanded MCP
+// prompt. The expansion runs in a goroutine since it contacts the MCP server.
+type mcpPromptResultMsg struct {
+	text      string            // concatenated user messages to submit as the prompt
+	fileParts []kit.LLMFilePart // binary attachments from embedded resources
+	err       error             // error from the server
+}
+
 // beforeSessionSwitchResultMsg carries the result of an asynchronously
 // executed before-session-switch hook. The hook runs in a goroutine so that
 // blocking operations like ctx.PromptConfirm() do not deadlock the TUI.

internal/ui/model_test.go

@@ -873,6 +873,123 @@ func TestCtrlC_producesQuit(t *testing.T) {
 	}
 }
 
+// TestCtrlC_clearsInput_firstPress tests that Ctrl+C clears input on first
+// press when there's content, and requires a second press to quit.
+func TestCtrlC_clearsInput_firstPress(t *testing.T) {
+	// Create a real InputComponent to test the clear behavior
+	ctrl := &stubAppController{}
+	m, _, _ := newTestAppModel(ctrl)
+
+	// Replace with real InputComponent that has content
+	input := NewInputComponent(80, "test", ctrl)
+	input.textarea.SetValue("some text content")
+	m.input = input
+
+	// First Ctrl+C should clear input, not quit
+	_, cmd := m.Update(tea.KeyPressMsg{Code: 'c', Mod: tea.ModCtrl})
+
+	// Should have cleared the input
+	if input.textarea.Value() != "" {
+		t.Fatalf("expected input to be cleared, got %q", input.textarea.Value())
+	}
+
+	// Should have set ctrlCPressedOnce flag
+	if !m.ctrlCPressedOnce {
+		t.Fatal("expected ctrlCPressedOnce to be true after first Ctrl+C")
+	}
+
+	// The command should be a ctrlCResetCmd (not tea.Quit)
+	if cmd == nil {
+		t.Fatal("expected a command after first Ctrl+C, got nil")
+	}
+	msg := cmd()
+	if _, ok := msg.(core.CtrlCResetMsg); !ok {
+		t.Fatalf("expected CtrlCResetMsg, got %T", msg)
+	}
+
+	// Second Ctrl+C should now quit
+	_, cmd = m.Update(tea.KeyPressMsg{Code: 'c', Mod: tea.ModCtrl})
+	if cmd == nil {
+		t.Fatal("expected tea.Quit cmd on second Ctrl+C, got nil")
+	}
+	msg = cmd()
+	if _, ok := msg.(tea.QuitMsg); !ok {
+		t.Fatalf("expected QuitMsg on second Ctrl+C, got %T", msg)
+	}
+}
+
+// TestCtrlC_resetAfterSubmit tests that the Ctrl+C flag is reset after
+// submitting a message, so the next Ctrl+C clears input again.
+func TestCtrlC_resetAfterSubmit(t *testing.T) {
+	// Use newTestAppModel but replace the input with a real InputComponent
+	ctrl := &stubAppController{}
+	m, _, _ := newTestAppModel(ctrl)
+
+	// Replace with real InputComponent
+	input := NewInputComponent(80, "test", ctrl)
+	input.textarea.SetValue("content")
+	m.input = input
+
+	// First Ctrl+C clears input
+	updated, _ := m.Update(tea.KeyPressMsg{Code: 'c', Mod: tea.ModCtrl})
+	m = updated.(*AppModel)
+	if input.textarea.Value() != "" {
+		t.Fatal("expected input to be cleared")
+	}
+
+	// Flag should be set
+	if !m.ctrlCPressedOnce {
+		t.Fatal("expected ctrlCPressedOnce to be true after first Ctrl+C")
+	}
+
+	// Simulate CtrlCResetMsg being processed (timer expired)
+	updated, _ = m.Update(core.CtrlCResetMsg{})
+	m = updated.(*AppModel)
+
+	// Flag should be reset
+	if m.ctrlCPressedOnce {
+		t.Fatal("expected ctrlCPressedOnce to be false after CtrlCResetMsg")
+	}
+
+	// Add new content to input
+	input.textarea.SetValue("new content")
+
+	// Next Ctrl+C should clear again (not quit) because flag was reset
+	_, cmd := m.Update(tea.KeyPressMsg{Code: 'c', Mod: tea.ModCtrl})
+	if input.textarea.Value() != "" {
+		t.Fatalf("expected input to be cleared again, got %q", input.textarea.Value())
+	}
+	if cmd == nil {
+		t.Fatal("expected a command after Ctrl+C, got nil")
+	}
+	msg := cmd()
+	if _, ok := msg.(core.CtrlCResetMsg); !ok {
+		t.Fatalf("expected CtrlCResetMsg, got %T", msg)
+	}
+}
+
+// TestCtrlC_emptyInput_quitsImmediately tests that Ctrl+C quits immediately
+// when the input is empty (no content to clear).
+func TestCtrlC_emptyInput_quitsImmediately(t *testing.T) {
+	ctrl := &stubAppController{}
+	m, _, _ := newTestAppModel(ctrl)
+
+	// Replace with real InputComponent (empty by default)
+	input := NewInputComponent(80, "test", ctrl)
+	m.input = input
+
+	// Ctrl+C on empty input should quit immediately
+	_, cmd := m.Update(tea.KeyPressMsg{Code: 'c', Mod: tea.ModCtrl})
+
+	if cmd == nil {
+		t.Fatal("expected tea.Quit cmd on empty input, got nil")
+	}
+	msg := cmd()
+	if _, ok := msg.(tea.QuitMsg); !ok {
+		t.Fatalf("expected QuitMsg, got %T", msg)
+	}
+}
+
 // --------------------------------------------------------------------------
 // submitMsg during stateWorking (queue path)
 // --------------------------------------------------------------------------

internal/ui/progress/ollama.go

@@ -288,3 +288,9 @@ func (pr *ProgressReader) Close() error {
 
 	return nil
 }
+
+// NewProgressReadCloser is a convenience wrapper around NewProgressReader that
+// returns an io.ReadCloser, suitable for use as a ProgressReaderFunc callback.
+func NewProgressReadCloser(r io.Reader) io.ReadCloser {
+	return NewProgressReader(r)
+}

internal/ui/prompt.go

@@ -19,9 +19,10 @@ import (
 type promptMode string
 
 const (
-	promptModeSelect  promptMode = "select"
-	promptModeConfirm promptMode = "confirm"
-	promptModeInput   promptMode = "input"
+	promptModeSelect   promptMode = "select"
+	promptModeConfirm  promptMode = "confirm"
+	promptModeInput    promptMode = "input"
+	promptModePassword promptMode = "password"
 )
 
 // promptResult carries the synchronous outcome of a prompt overlay update.
@@ -102,10 +103,38 @@ func newInputPrompt(message, placeholder, defaultValue string, width, height int
 	}
 }
 
-// Init returns the initial command for the prompt overlay. For input mode
-// this starts the cursor blink animation.
+// newPasswordPrompt creates a prompt overlay for password input (masked).
+func newPasswordPrompt(message string, width, height int) *promptOverlay {
+	ta := textarea.New()
+	ta.Placeholder = "Enter password"
+	ta.ShowLineNumbers = false
+	ta.Prompt = ""
+	ta.CharLimit = 0
+	ta.SetWidth(width - 12) // account for border + padding
+	ta.SetHeight(1)
+	ta.Focus()
+
+	// Prevent Enter from inserting a newline — we intercept it for submit.
+	ta.KeyMap.InsertNewline = key.NewBinding(
+		key.WithKeys("ctrl+j", "shift+enter"),
+	)
+
+	// Enable password masking - the textarea will show dots instead of characters
+	// Note: textarea doesn't have built-in password masking, so we handle it in View()
+
+	return &promptOverlay{
+		mode:    promptModePassword,
+		message: message,
+		inputTA: ta,
+		width:   width,
+		height:  height,
+	}
+}
+
+// Init returns the initial command for the prompt overlay. For input/password
+// modes this starts the cursor blink animation.
 func (p *promptOverlay) Init() tea.Cmd {
-	if p.mode == promptModeInput {
+	if p.mode == promptModeInput || p.mode == promptModePassword {
 		return textarea.Blink
 	}
 	return nil
@@ -113,13 +142,13 @@ func (p *promptOverlay) Init() tea.Cmd {
 
 // Update handles messages for the prompt overlay. It returns a non-nil
 // *promptResult when the user completes or cancels the prompt. The returned
-// tea.Cmd is for textarea blink ticks (input mode only).
+// tea.Cmd is for textarea blink ticks (input/password modes only).
 func (p *promptOverlay) Update(msg tea.Msg) (*promptResult, tea.Cmd) {
 	switch msg := msg.(type) {
 	case tea.WindowSizeMsg:
 		p.width = msg.Width
 		p.height = msg.Height
-		if p.mode == promptModeInput {
+		if p.mode == promptModeInput || p.mode == promptModePassword {
 			p.inputTA.SetWidth(p.width - 12)
 		}
 		return nil, nil
@@ -132,11 +161,13 @@ func (p *promptOverlay) Update(msg tea.Msg) (*promptResult, tea.Cmd) {
 			return p.updateConfirm(msg)
 		case promptModeInput:
 			return p.updateInput(msg)
+		case promptModePassword:
+			return p.updatePassword(msg)
 		}
 	}
 
 	// Pass non-key messages to textarea for blink animation.
-	if p.mode == promptModeInput {
+	if p.mode == promptModeInput || p.mode == promptModePassword {
 		var cmd tea.Cmd
 		p.inputTA, cmd = p.inputTA.Update(msg)
 		return nil, cmd
@@ -202,6 +233,20 @@ func (p *promptOverlay) updateInput(msg tea.KeyPressMsg) (*promptResult, tea.Cmd
 	}
 }
 
+func (p *promptOverlay) updatePassword(msg tea.KeyPressMsg) (*promptResult, tea.Cmd) {
+	switch msg.String() {
+	case "enter":
+		return &promptResult{completed: true, value: p.inputTA.Value()}, nil
+	case "esc":
+		return &promptResult{cancelled: true}, nil
+	default:
+		// Delegate character input, backspace, cursor movement, etc.
+		var cmd tea.Cmd
+		p.inputTA, cmd = p.inputTA.Update(msg)
+		return nil, cmd
+	}
+}
+
 // Render returns the prompt as a styled string for inline composition in the
 // AppModel layout. The prompt replaces the normal input area (below the
 // separator and above the status bar) rather than taking over the full screen.
@@ -216,6 +261,8 @@ func (p *promptOverlay) Render() string {
 		content = p.viewConfirm(theme)
 	case promptModeInput:
 		content = p.viewInput(theme)
+	case promptModePassword:
+		content = p.viewPassword(theme)
 	}
 
 	return renderContentBlock(content, p.width,
@@ -286,3 +333,25 @@ func (p *promptOverlay) viewInput(theme style.Theme) string {
 
 	return strings.Join(lines, "\n")
 }
+
+func (p *promptOverlay) viewPassword(theme style.Theme) string {
+	var lines []string
+	// Add 🔐 icon to message for password prompt
+	lines = append(lines, lipgloss.NewStyle().Bold(true).Foreground(theme.Text).Render("🔐 "+p.message))
+	lines = append(lines, "")
+
+	// Mask the password input with dots
+	passwordValue := p.inputTA.Value()
+	masked := strings.Repeat("•", len([]rune(passwordValue)))
+	// Render the masked password in a style that looks like input
+	maskedStyle := lipgloss.NewStyle().Foreground(theme.Text)
+	cursor := lipgloss.NewStyle().Foreground(theme.Accent).Render("█")
+	lines = append(lines, maskedStyle.Render(masked)+cursor)
+
+	lines = append(lines, "")
+	lines = append(lines, lipgloss.NewStyle().
+		Foreground(theme.Muted).
+		Render("  Enter submit  Esc cancel  (input is hidden)"))
+
+	return strings.Join(lines, "\n")
+}

internal/ui/render/blocks.go

@@ -5,6 +5,7 @@ package render
 
 import (
 	"fmt"
+	"regexp"
 	"strings"
 
 	"charm.land/lipgloss/v2"
@@ -13,8 +14,14 @@ import (
 	"github.com/mark3labs/kit/internal/ui/style"
 )
 
+// fileTokenPattern matches @file references in user text. Supports:
+//   - @"path with spaces.txt" (quoted)
+//   - @path/to/file.txt      (unquoted, no spaces)
+var fileTokenPattern = regexp.MustCompile(`@"[^"]+"|@[^\s]+`)
+
 // UserBlock renders a user message with herald Tip styling.
 // The width parameter controls line wrapping so long messages don't overflow.
+// Any @file tokens in the content are highlighted with the theme accent color.
 func UserBlock(content string, width int, ty *herald.Typography, theme style.Theme) string {
 	if strings.TrimSpace(content) == "" {
 		content = "(empty message)"
@@ -27,10 +34,23 @@ func UserBlock(content string, width int, ty *herald.Typography, theme style.The
 		content = lipgloss.Wrap(content, width-4, "")
 	}
 
+	// Highlight @file tokens with accent color so file references are
+	// visually distinct from surrounding prompt text.
+	content = highlightFileTokens(content, theme)
+
 	rendered := ty.Tip(content)
 	return styleMarginBottom(theme, rendered)
 }
 
+// highlightFileTokens wraps @file tokens in the given text with the theme
+// accent color so they stand out visually in rendered user messages.
+func highlightFileTokens(text string, theme style.Theme) string {
+	accentStyle := lipgloss.NewStyle().Foreground(theme.Accent).Bold(true)
+	return fileTokenPattern.ReplaceAllStringFunc(text, func(token string) string {
+		return accentStyle.Render(token)
+	})
+}
+
 // AssistantBlock renders an assistant message with markdown styling.
 func AssistantBlock(content string, width int, theme style.Theme) string {
 	if strings.TrimSpace(content) == "" {

internal/ui/render/blocks_test.go

@@ -0,0 +1,110 @@
+package render
+
+import (
+	"strings"
+	"testing"
+
+	"github.com/indaco/herald"
+
+	"github.com/mark3labs/kit/internal/ui/style"
+)
+
+// testTypography creates a herald Typography for tests.
+func testTypography(theme style.Theme) *herald.Typography {
+	return herald.New(
+		herald.WithPalette(herald.ColorPalette{
+			Primary:   theme.Primary,
+			Secondary: theme.Secondary,
+			Tertiary:  theme.Info,
+			Accent:    theme.Accent,
+			Highlight: theme.Highlight,
+			Muted:     theme.Muted,
+			Text:      theme.Text,
+			Surface:   theme.Background,
+			Base:      theme.CodeBg,
+		}),
+		herald.WithAlertLabel(herald.AlertTip, "You"),
+	)
+}
+
+func TestHighlightFileTokens(t *testing.T) {
+	theme := style.DefaultTheme()
+
+	tests := []struct {
+		name     string
+		input    string
+		wantHas  []string // substrings that must be present in the output
+		wantNone []string // substrings that must NOT be present as plain text
+	}{
+		{
+			name:    "no tokens",
+			input:   "hello world",
+			wantHas: []string{"hello world"},
+		},
+		{
+			name:    "single unquoted token",
+			input:   "refactor @main.go please",
+			wantHas: []string{"@main.go", "refactor", "please"},
+		},
+		{
+			name:    "quoted token with spaces",
+			input:   `check @"path with spaces/file.txt" out`,
+			wantHas: []string{`@"path with spaces/file.txt"`, "check", "out"},
+		},
+		{
+			name:    "multiple tokens",
+			input:   "@main.go @utils.go refactor these",
+			wantHas: []string{"@main.go", "@utils.go", "refactor these"},
+		},
+		{
+			name:    "path with directory",
+			input:   "look at @internal/ui/render/blocks.go",
+			wantHas: []string{"@internal/ui/render/blocks.go", "look at"},
+		},
+		{
+			name:    "empty string",
+			input:   "",
+			wantHas: []string{""},
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			result := highlightFileTokens(tt.input, theme)
+
+			for _, want := range tt.wantHas {
+				if !strings.Contains(result, want) {
+					t.Errorf("highlightFileTokens(%q) = %q, want substring %q", tt.input, result, want)
+				}
+			}
+
+			// If there were @tokens, the result should contain ANSI escape
+			// sequences (from lipgloss styling).
+			if fileTokenPattern.MatchString(tt.input) && !strings.Contains(result, "\x1b[") {
+				t.Errorf("highlightFileTokens(%q) should contain ANSI escapes for @tokens but got %q", tt.input, result)
+			}
+		})
+	}
+}
+
+func TestUserBlockHighlightsFileTokens(t *testing.T) {
+	theme := style.DefaultTheme()
+	ty := testTypography(theme)
+
+	// A user message with @file tokens should contain ANSI escapes around the token.
+	content := "refactor @main.go and @utils.go"
+	result := UserBlock(content, 80, ty, theme)
+
+	// The rendered output should contain both file references.
+	if !strings.Contains(result, "@main.go") {
+		t.Errorf("UserBlock output should contain @main.go, got:\n%s", result)
+	}
+	if !strings.Contains(result, "@utils.go") {
+		t.Errorf("UserBlock output should contain @utils.go, got:\n%s", result)
+	}
+
+	// Verify ANSI codes are present (the tokens are styled).
+	if !strings.Contains(result, "\x1b[") {
+		t.Errorf("UserBlock output should contain ANSI escape codes for styled @file tokens")
+	}
+}

internal/ui/stream.go

@@ -588,8 +588,10 @@ func formatToolExecutionMessage(toolName string) string {
 	return toolName
 }
 
-// UpdateTheme refreshes the component's typography instance with colors from
-// the current theme. This is called when the user changes themes via /theme.
+// UpdateTheme refreshes the component's typography instance and spinner
+// animation frames with colors from the current theme. This is called when
+// the user changes themes via /theme.
 func (s *StreamComponent) UpdateTheme() {
 	s.ty = createTypography(GetTheme())
+	s.spinnerFrames = knightRiderFrames()
 }

internal/ui/tree_selector.go

@@ -200,10 +200,6 @@ func (ts *TreeSelectorComponent) Update(msg tea.Msg) (tea.Model, tea.Cmd) {
 		case key.Matches(msg, key.NewBinding(key.WithKeys("ctrl+l"))):
 			ts.filter = TreeFilterLabelOnly
 			ts.rebuildFlatList()
-		case key.Matches(msg, key.NewBinding(key.WithKeys("ctrl+a"))):
-			ts.filter = TreeFilterAll
-			ts.rebuildFlatList()
-
 		default:
 			// Typing search.
 			if msg.Text != "" && len(msg.Text) == 1 {

internal/ui/usage_tracker.go

@@ -134,23 +134,28 @@ func (ut *UsageTracker) EstimateAndUpdateUsage(inputText, outputText string) {
 }
 
 // SetContextTokens records the approximate current context window utilization.
-// This should be set from FinalUsage.InputTokens, which already includes the
-// full conversation history (system prompt + all previous messages). Do NOT
-// add OutputTokens as that would double-count (output becomes input next turn).
-// Use FinalResponse.Usage rather than aggregate TotalUsage, because TotalUsage
-// sums across all tool-calling steps and overstates the actual window fill level.
+//
+// The value should include ALL token categories from the last API call:
+//
+//	InputTokens + CacheReadTokens + CacheCreationTokens + OutputTokens
+//
+// With Anthropic prompt caching, InputTokens can be near-zero while
+// CacheReadTokens holds the bulk of the context. All four must be summed
+// to get the true context window fill level.
+//
+// OutputTokens is included because the assistant's output becomes part of
+// the context on the next turn.
+//
+// Use FinalResponse.Usage (last step only) rather than aggregate TotalUsage,
+// because TotalUsage sums across all tool-calling steps and overstates the
+// actual window fill level.
+//
+// The value is set unconditionally (not max-only) so that context shrinks
+// correctly after compaction.
 func (ut *UsageTracker) SetContextTokens(tokens int) {
 	ut.mu.Lock()
 	defer ut.mu.Unlock()
-	// Track the maximum context seen so far. In multi-step tool calls,
-	// FinalUsage.InputTokens may reflect only the last step's input, which
-	// can be smaller than previous steps. We want to show the largest context
-	// the model has processed in this session.
-	if tokens > ut.contextTokens {
-		ut.contextTokens = tokens
-	}
-	// If tokens < current, we keep the larger value (no-op)
-	// This prevents the display from dropping during multi-step tool calls.
+	ut.contextTokens = tokens
 }
 
 // RenderUsageInfo generates a formatted string displaying current usage statistics

pkg/kit/README.md

@@ -77,6 +77,11 @@ host, err := kit.New(ctx, &kit.Options{
 
     // Compaction
     AutoCompact:  true,                       // Auto-compact near context limit
+
+    // In-process MCP servers (map name → *kit.MCPServer)
+    InProcessMCPServers: map[string]*kit.MCPServer{
+        "docs": mcpSrv,
+    },
 })
 ```
 
@@ -112,6 +117,79 @@ response, err := host.Prompt(
 )
 ```
 
+### Dynamic MCP Server Management
+
+Add, remove, and list MCP servers at runtime:
+
+```go
+// Add an MCP server at runtime
+n, err := host.AddMCPServer(ctx, "github", kit.MCPServerConfig{
+    Command: "npx",
+    Args:    []string{"-y", "@modelcontextprotocol/server-github"},
+})
+fmt.Printf("Loaded %d tools from MCP server\n", n)
+
+// List connected MCP servers
+for _, s := range host.ListMCPServers() {
+    fmt.Printf("%s: %d tools\n", s.Name, s.ToolCount)
+}
+
+// Disconnect a server and remove its tools
+host.RemoveMCPServer("github")
+```
+
+### In-Process MCP Servers
+
+Register mcp-go servers that run in the same process — no subprocess spawning,
+no network I/O. This is ideal for custom tool servers implemented in Go:
+
+```go
+import (
+    "github.com/mark3labs/mcp-go/mcp"
+    "github.com/mark3labs/mcp-go/server"
+)
+
+// Create an mcp-go server with tools
+mcpSrv := server.NewMCPServer("my-tools", "1.0.0",
+    server.WithToolCapabilities(true),
+)
+mcpSrv.AddTool(mcp.NewTool("search_docs",
+    mcp.WithDescription("Search documentation"),
+    mcp.WithString("query", mcp.Required()),
+), searchHandler)
+
+// Option 1: At init time via Options
+host, _ := kit.New(ctx, &kit.Options{
+    InProcessMCPServers: map[string]*kit.MCPServer{
+        "docs": mcpSrv,
+    },
+})
+
+// Option 2: At runtime
+n, err := host.AddInProcessMCPServer(ctx, "docs", mcpSrv)
+fmt.Printf("Loaded %d tools from in-process server\n", n)
+```
+
+Kit does not take ownership of the server's lifecycle — the caller is responsible for any cleanup. In-process server tools are prefixed the same way as external MCP servers (e.g. `"docs__search_docs"`).
+
+### MCP Prompts
+
+MCP servers can expose prompt templates via the MCP prompts capability.
+Kit exposes these through the SDK:
+
+```go
+// List prompts from all connected MCP servers
+prompts := host.ListMCPPrompts()
+for _, p := range prompts {
+    fmt.Printf("%s/%s: %s\n", p.Server, p.Name, p.Description)
+}
+
+// Get a specific prompt with arguments
+msg, err := host.GetMCPPrompt(ctx, "server-name", "prompt-name", map[string]string{
+    "topic": "concurrency",
+})
+```
+
 ### Session Management
 
 Maintain conversation context:
@@ -145,6 +223,16 @@ kit.LLMUsage        // {InputTokens, OutputTokens, TotalTokens, ...}
 kit.LLMResponse     // {Content, FinishReason, Usage}
 kit.LLMFilePart     // {Filename, Data []byte, MediaType}
 
+// MCP OAuth types
+kit.MCPServer            // *server.MCPServer for in-process MCP transport
+kit.MCPServerConfig      // Configuration for an MCP server (stdio, SSE, or in-process)
+kit.MCPAuthHandler       // Interface: handles user-facing OAuth authorization
+kit.DefaultMCPAuthHandler // Port + callback-server mechanics; set OnAuthURL for presentation
+kit.CLIMCPAuthHandler    // CLI wrapper: opens browser, prints status
+kit.MCPTokenStore        // Persists OAuth tokens for a single MCP server
+kit.MCPToken             // OAuth token (access token, refresh token, expiry)
+kit.MCPTokenStoreFactory // Creates an MCPTokenStore for a given server URL
+
 // Conversion helpers
 msgs := kit.ConvertToLLMMessages(&msg)   // SDK Message → []LLMMessage
 msg  := kit.ConvertFromLLMMessage(lMsg)  // LLMMessage  → SDK Message
@@ -192,6 +280,7 @@ Key `Options` fields for SDK usage:
 | `NoSession` | Ephemeral mode (no session persistence) |
 | `SessionPath` | Open specific session file |
 | `Continue` | Resume most recent session |
+| `InProcessMCPServers` | Map of name → `*kit.MCPServer` for in-process MCP servers |
 | `Debug` | Enable debug logging |
 
 ## Environment Variables

pkg/kit/adapter.go

@@ -22,13 +22,13 @@ func NewTreeManagerAdapter(tm *session.TreeManager) SessionManager {
 
 // AppendMessage implements SessionManager.
 func (a *treeManagerAdapter) AppendMessage(msg LLMMessage) (string, error) {
-	// LLMMessage is just an alias for fantasy.Message, so no conversion needed
+	// LLMMessage is a type alias, so no conversion needed.
 	return a.inner.AppendLLMMessage(msg)
 }
 
 // GetMessages implements SessionManager.
 func (a *treeManagerAdapter) GetMessages() []LLMMessage {
-	// LLMMessage is just an alias for fantasy.Message
+	// LLMMessage is a type alias, so no conversion needed.
 	return a.inner.GetLLMMessages()
 }
 
@@ -223,9 +223,8 @@ func (a *treeManagerAdapter) convertEntry(entry any) *BranchEntry {
 	}
 }
 
-// convertKitMessagesToFantasy converts kit LLM messages to fantasy messages.
-// Since LLMMessage is an alias for fantasy.Message, this is a no-op.
-func convertKitMessagesToFantasy(msgs []LLMMessage) []fantasy.Message {
-	// LLMMessage is just an alias for fantasy.Message, so we can type convert
+// convertToLLMMessages converts kit LLM messages to the underlying provider
+// message type. Since LLMMessage is a type alias, this is a no-op.
+func convertToLLMMessages(msgs []LLMMessage) []fantasy.Message {
 	return msgs
 }

pkg/kit/compaction.go

@@ -31,6 +31,11 @@ func (m *Kit) EstimateContextTokens() int {
 // limit and should be compacted.
 // Formula: contextTokens > contextWindow − reserveTokens.
 // Returns false if the model's context limit is unknown.
+//
+// When API-reported token counts are available (after at least one turn),
+// the real count is used instead of the text-based heuristic. This is
+// significantly more accurate because it includes system prompts, tool
+// definitions, and other overhead that the heuristic cannot account for.
 func (m *Kit) ShouldCompact() bool {
 	info := m.GetModelInfo()
 	if info == nil || info.Limit.Context <= 0 {
@@ -42,8 +47,18 @@ func (m *Kit) ShouldCompact() bool {
 		reserveTokens = m.compactionOpts.ReserveTokens
 	}
 
+	// Prefer the real API-reported token count when available.
+	m.lastInputTokensMu.RLock()
+	realTokens := m.lastInputTokens
+	m.lastInputTokensMu.RUnlock()
+
+	if realTokens > 0 {
+		return realTokens > info.Limit.Context-reserveTokens
+	}
+
+	// Fall back to text-based heuristic before first turn completes.
 	messages := m.session.GetMessages()
-	return compaction.ShouldCompact(convertKitMessagesToFantasy(messages), info.Limit.Context, reserveTokens)
+	return compaction.ShouldCompact(convertToLLMMessages(messages), info.Limit.Context, reserveTokens)
 }
 
 // GetContextStats returns current context usage statistics including
@@ -188,9 +203,9 @@ func (m *Kit) compactInternal(ctx context.Context, opts *CompactionOptions, cust
 // custom summary. It still determines the cut point and persists a
 // CompactionEntry.
 func (m *Kit) applyCustomCompaction(summary string, messages []LLMMessage, opts *CompactionOptions) (*CompactionResult, error) {
-	originalTokens := compaction.EstimateMessageTokens(convertKitMessagesToFantasy(messages))
+	originalTokens := compaction.EstimateMessageTokens(convertToLLMMessages(messages))
 
-	cutPoint := compaction.FindCutPoint(convertKitMessagesToFantasy(messages), opts.KeepRecentTokens)
+	cutPoint := compaction.FindCutPoint(convertToLLMMessages(messages), opts.KeepRecentTokens)
 	if cutPoint == 0 {
 		cutPoint = len(messages) - 1
 		if cutPoint < 1 {
@@ -245,6 +260,14 @@ func (m *Kit) persistAndEmitCompaction(
 	); err != nil {
 		return fmt.Errorf("failed to persist compaction entry: %w", err)
 	}
+
+	// Reset the API-reported token count so GetContextStats() and
+	// ShouldCompact() don't use stale pre-compaction values. The next
+	// API call will set the accurate post-compaction count.
+	m.lastInputTokensMu.Lock()
+	m.lastInputTokens = 0
+	m.lastInputTokensMu.Unlock()
+
 	m.events.emit(CompactionEvent{
 		Summary:         summary,
 		OriginalTokens:  originalTokens,

pkg/kit/config.go

@@ -38,20 +38,37 @@ Guidelines:
 - Be concise in your responses
 - Show file paths clearly when working with files`
 
-// setSDKDefaults registers the same viper defaults that the CLI sets via
-// cobra flag bindings. This ensures the SDK behaves identically to the CLI
-// even when cobra is not used.
+// sdkDefaultMaxTokens is the last-resort ceiling applied when the SDK caller
+// has not configured max-tokens via Options, env, config, or a per-model
+// default. It matches the CLI's --max-tokens cobra default so SDK and CLI
+// callers see the same base value before per-model right-sizing runs.
+// It is intentionally applied on the *models.ProviderConfig struct
+// (not via viper) so that viper.IsSet("max-tokens") remains false and the
+// right-sizing + per-model-default paths continue to work.
+const sdkDefaultMaxTokens = 8192
+
+// setSDKDefaults registers viper defaults that match the CLI's cobra flag
+// defaults for keys where SetDefault does not interfere with downstream
+// viper.IsSet() checks.
+//
+// Keys that participate in "explicit vs unset" precedence downstream —
+// max-tokens, temperature, top-p, top-k, frequency-penalty, presence-penalty,
+// thinking-level — are deliberately NOT registered here. viper.SetDefault
+// causes viper.IsSet() to return true, which would suppress per-model
+// defaults (ApplyModelSettings) and automatic right-sizing (rightSizeMaxTokens)
+// for every SDK-created Kit. Those defaults are instead applied:
+//
+//   - max-tokens: as a last-resort struct-level floor (sdkDefaultMaxTokens)
+//     in kit.New() after BuildProviderConfig returns, when the resolved
+//     value is still zero.
+//   - thinking-level: handled implicitly by models.ParseThinkingLevel("")
+//     which returns models.ThinkingOff.
+//   - sampling params (temperature, top-p, top-k, frequency/presence-penalty):
+//     left as nil pointers so provider libraries apply their own defaults.
 func setSDKDefaults() {
 	viper.SetDefault("model", "anthropic/claude-sonnet-4-5-20250929")
 	viper.SetDefault("system-prompt", defaultSystemPrompt)
-	viper.SetDefault("max-tokens", 4096)
-	viper.SetDefault("temperature", 0.7)
-	viper.SetDefault("top-p", 0.95)
-	viper.SetDefault("top-k", 40)
-	viper.SetDefault("frequency-penalty", 0.0)
-	viper.SetDefault("presence-penalty", 0.0)
 	viper.SetDefault("stream", true)
-	viper.SetDefault("thinking-level", "off")
 	viper.SetDefault("num-gpu-layers", -1)
 	viper.SetDefault("main-gpu", 0)
 }
@@ -102,6 +119,10 @@ func InitConfig(configFile string, debug bool) error {
 	}
 
 	viper.SetEnvPrefix("KIT")
+	// Map hyphenated config keys (e.g. "max-tokens") to underscored env
+	// var names (e.g. KIT_MAX_TOKENS). Without this, AutomaticEnv looks
+	// for KIT_MAX-TOKENS and silently misses valid env overrides.
+	viper.SetEnvKeyReplacer(strings.NewReplacer("-", "_"))
 	viper.AutomaticEnv()
 	return nil
 }

pkg/kit/events.go

@@ -45,6 +45,8 @@ const (
 	// EventToolOutput fires when a tool produces streaming output chunks.
 	EventToolOutput EventType = "tool_output"
 	EventStepUsage  EventType = "step_usage"
+	// EventPasswordPrompt fires when a sudo command needs a password.
+	EventPasswordPrompt EventType = "password_prompt"
 	// EventSteerConsumed fires when one or more steering messages have been
 	// injected into the agent turn via PrepareStep.
 	EventSteerConsumed EventType = "steer_consumed"
@@ -108,6 +110,38 @@ func parseToolArgs(toolArgs string) map[string]any {
 	return nil
 }
 
+// ---------------------------------------------------------------------------
+// Finish reason constants
+// ---------------------------------------------------------------------------
+
+// Finish reasons reported by the LLM provider on a completed turn. These
+// mirror fantasy.FinishReason string values so comparisons against
+// TurnEndEvent.StopReason / TurnResult.StopReason are stable across
+// providers.
+const (
+	// FinishReasonStop: the model produced a natural stop (e.g. stop sequence
+	// or end-of-turn signal).
+	FinishReasonStop = "stop"
+	// FinishReasonLength: the model hit the configured max_output_tokens
+	// budget. The response is truncated. Surface this to the user and
+	// consider raising --max-tokens / KIT_MAX_TOKENS / modelSettings[...]
+	// .maxTokens.
+	FinishReasonLength = "length"
+	// FinishReasonToolCalls: the model stopped to emit tool calls (normal
+	// mid-turn state during agentic loops).
+	FinishReasonToolCalls = "tool-calls"
+	// FinishReasonContentFilter: the provider's safety filter stopped
+	// generation.
+	FinishReasonContentFilter = "content-filter"
+	// FinishReasonError: the model stopped because of an error.
+	FinishReasonError = "error"
+	// FinishReasonOther: provider-specific reason that doesn't map to any of
+	// the above.
+	FinishReasonOther = "other"
+	// FinishReasonUnknown: the provider didn't report a finish reason.
+	FinishReasonUnknown = "unknown"
+)
+
 // ---------------------------------------------------------------------------
 // Concrete event structs
 // ---------------------------------------------------------------------------
@@ -122,9 +156,13 @@ func (e TurnStartEvent) EventType() EventType { return EventTurnStart }
 
 // TurnEndEvent fires after the agent finishes processing.
 type TurnEndEvent struct {
-	Response   string
-	Error      error
-	StopReason string // "end_turn", "max_tokens", "tool_use", "error", etc.
+	Response string
+	Error    error
+	// StopReason is the LLM provider's finish reason for the final step of
+	// the turn. Compare against the FinishReason* constants — in particular,
+	// FinishReasonLength indicates the response was truncated because the
+	// agent hit its max_output_tokens budget.
+	StopReason string
 }
 
 // EventType implements Event.
@@ -299,6 +337,26 @@ type SteerConsumedEvent struct {
 // EventType implements Event.
 func (e SteerConsumedEvent) EventType() EventType { return EventSteerConsumed }
 
+// 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 {
+	// Prompt is the message to display to the user.
+	Prompt string
+	// ResponseCh receives the password from the TUI.
+	// The TUI must send exactly one value: (password, false) for submit
+	// or ("", true) for cancel.
+	ResponseCh chan<- PasswordPromptResponse
+}
+
+// PasswordPromptResponse carries the password prompt result.
+type PasswordPromptResponse struct {
+	Password  string
+	Cancelled bool
+}
+
+// EventType implements Event.
+func (e PasswordPromptEvent) EventType() EventType { return EventPasswordPrompt }
+
 // ---------------------------------------------------------------------------
 // EventBus
 // ---------------------------------------------------------------------------

pkg/kit/kit_test.go

@@ -5,6 +5,8 @@ import (
 	"os"
 	"testing"
 
+	"github.com/spf13/viper"
+
 	kit "github.com/mark3labs/kit/pkg/kit"
 )
 
@@ -54,6 +56,225 @@ func TestNewWithOptions(t *testing.T) {
 	}
 }
 
+// TestNewWithGenerationOptions verifies that the SDK-only generation
+// parameter overrides on Options propagate all the way through to the
+// agent without requiring any viper.Set workarounds in caller code.
+func TestNewWithGenerationOptions(t *testing.T) {
+	if os.Getenv("ANTHROPIC_API_KEY") == "" {
+		t.Skip("Skipping test: ANTHROPIC_API_KEY not set")
+	}
+
+	ctx := context.Background()
+
+	// MaxTokens override — keep ThinkingLevel off so Anthropic's thinking
+	// budget doesn't auto-bump MaxTokens above what we configured.
+	t.Run("MaxTokens", func(t *testing.T) {
+		defer resetViper()
+
+		const want = 12345
+		host, err := kit.New(ctx, &kit.Options{
+			Model:     "anthropic/claude-sonnet-4-5-20250929",
+			Quiet:     true,
+			MaxTokens: want,
+		})
+		if err != nil {
+			t.Fatalf("Failed to create Kit: %v", err)
+		}
+		defer func() { _ = host.Close() }()
+
+		if got := host.MaxTokens(); got != want {
+			t.Errorf("Options.MaxTokens=%d did not propagate; Kit.MaxTokens()=%d", want, got)
+		}
+		if !viper.IsSet("max-tokens") {
+			t.Error("viper.IsSet(\"max-tokens\") should be true after MaxTokens override")
+		}
+	})
+
+	// ThinkingLevel override — verified via the public getter, which
+	// reads back the configured (not provider-derived) level.
+	t.Run("ThinkingLevel", func(t *testing.T) {
+		defer resetViper()
+
+		const want = "high"
+		host, err := kit.New(ctx, &kit.Options{
+			Model:         "anthropic/claude-sonnet-4-5-20250929",
+			Quiet:         true,
+			ThinkingLevel: want,
+		})
+		if err != nil {
+			t.Fatalf("Failed to create Kit: %v", err)
+		}
+		defer func() { _ = host.Close() }()
+
+		if got := host.GetThinkingLevel(); got != want {
+			t.Errorf("Options.ThinkingLevel=%q did not propagate; Kit.GetThinkingLevel()=%q", want, got)
+		}
+	})
+
+	// Temperature override — pointer semantics let callers distinguish
+	// "explicitly 0.0" from "unset", which we assert by pushing a distinct
+	// value and reading it back off viper's merged state.
+	t.Run("Temperature", func(t *testing.T) {
+		defer resetViper()
+
+		want := float32(0.12345)
+		host, err := kit.New(ctx, &kit.Options{
+			Model:       "anthropic/claude-sonnet-4-5-20250929",
+			Quiet:       true,
+			Temperature: &want,
+		})
+		if err != nil {
+			t.Fatalf("Failed to create Kit: %v", err)
+		}
+		defer func() { _ = host.Close() }()
+
+		if !viper.IsSet("temperature") {
+			t.Fatal("viper.IsSet(\"temperature\") should be true after Temperature override")
+		}
+		if got := float32(viper.GetFloat64("temperature")); got != want {
+			t.Errorf("Options.Temperature=%v did not propagate; viper=%v", want, got)
+		}
+	})
+}
+
+// TestNewPreservesIsSetSemantics verifies that creating a Kit WITHOUT
+// populating the generation-param Options fields does NOT mark those
+// keys as explicitly set in viper. This is the precedence contract
+// that per-model defaults (ApplyModelSettings) and right-sizing
+// (rightSizeMaxTokens) rely on.
+//
+// Previously setSDKDefaults() used viper.SetDefault() for every param,
+// which caused viper.IsSet() to return true for all of them — silently
+// suppressing per-model defaults and pinning max-tokens at 4096 even
+// on models with much larger output limits.
+func TestNewPreservesIsSetSemantics(t *testing.T) {
+	if os.Getenv("ANTHROPIC_API_KEY") == "" {
+		t.Skip("Skipping test: ANTHROPIC_API_KEY not set")
+	}
+
+	defer resetViper()
+
+	ctx := context.Background()
+	host, err := kit.New(ctx, &kit.Options{
+		Model:      "anthropic/claude-sonnet-4-5-20250929",
+		Quiet:      true,
+		NoSession:  true,
+		SkipConfig: true, // isolate from any ~/.kit.yml values
+	})
+	if err != nil {
+		t.Fatalf("Failed to create Kit: %v", err)
+	}
+	defer func() { _ = host.Close() }()
+
+	// These keys must remain "unset" from viper's perspective so the
+	// downstream isExplicitlySet() checks allow per-model defaults to
+	// take effect.
+	checkKeys := []string{
+		"max-tokens",
+		"temperature",
+		"top-p",
+		"top-k",
+		"frequency-penalty",
+		"presence-penalty",
+		"thinking-level",
+	}
+
+	// With SkipConfig: true, InitConfig() is not invoked, so viper has
+	// no env-var bindings registered. Any IsSet() here would come purely
+	// from SDK-side SetDefault/Set calls — which is exactly what this
+	// test is guarding against.
+	for _, k := range checkKeys {
+		if viper.IsSet(k) {
+			t.Errorf("viper.IsSet(%q) == true when no Options field set it "+
+				"(SDK defaults must not corrupt IsSet semantics)", k)
+		}
+	}
+}
+
+// TestNewWithProviderOptions verifies that programmatic provider overrides
+// (API key, URL) take effect without env vars or config files, and that
+// Options.ProviderAPIKey *wins* over any pre-existing viper state.
+func TestNewWithProviderOptions(t *testing.T) {
+	if os.Getenv("ANTHROPIC_API_KEY") == "" {
+		t.Skip("Skipping test: ANTHROPIC_API_KEY not set")
+	}
+
+	ctx := context.Background()
+
+	t.Run("succeeds with API key from Options", func(t *testing.T) {
+		defer resetViper()
+
+		apiKey := os.Getenv("ANTHROPIC_API_KEY")
+		host, err := kit.New(ctx, &kit.Options{
+			Model:          "anthropic/claude-sonnet-4-5-20250929",
+			Quiet:          true,
+			NoSession:      true,
+			ProviderAPIKey: apiKey,
+		})
+		if err != nil {
+			t.Fatalf("Failed to create Kit with ProviderAPIKey option: %v", err)
+		}
+		defer func() { _ = host.Close() }()
+
+		if got := viper.GetString("provider-api-key"); got != apiKey {
+			t.Errorf("Options.ProviderAPIKey did not propagate to viper; got %q (len=%d)", got, len(got))
+		}
+	})
+
+	// Override precedence: even when viper already holds a different
+	// provider-api-key value (as it would if a config file or earlier
+	// Set() call populated one), Options.ProviderAPIKey must win.
+	t.Run("Options override beats pre-existing viper state", func(t *testing.T) {
+		defer resetViper()
+
+		viper.Set("provider-api-key", "sk-config-file-placeholder")
+
+		want := "sk-from-options-override"
+		// Use an OpenAI-flavored model so the validation path accepts
+		// the placeholder without attempting a real Anthropic handshake.
+		host, err := kit.New(ctx, &kit.Options{
+			Model:            "openai/gpt-4o-mini",
+			Quiet:            true,
+			NoSession:        true,
+			NoExtensions:     true,
+			DisableCoreTools: true,
+			ProviderAPIKey:   want,
+		})
+		// Creation may still fail if the model registry is strict, but
+		// we only care that the override reached viper before any
+		// provider handshake happened.
+		if host != nil {
+			defer func() { _ = host.Close() }()
+		}
+		_ = err
+
+		if got := viper.GetString("provider-api-key"); got != want {
+			t.Errorf("Options.ProviderAPIKey did not override pre-existing viper value; got %q, want %q", got, want)
+		}
+	})
+
+	// ProviderURL override must also reach viper.
+	t.Run("ProviderURL propagates", func(t *testing.T) {
+		defer resetViper()
+
+		const want = "https://custom.example.com/v1"
+		host, err := kit.New(ctx, &kit.Options{
+			Model:       "anthropic/claude-sonnet-4-5-20250929",
+			Quiet:       true,
+			NoSession:   true,
+			ProviderURL: want,
+		})
+		if err != nil {
+			t.Fatalf("Failed to create Kit with ProviderURL option: %v", err)
+		}
+		defer func() { _ = host.Close() }()
+
+		if got := viper.GetString("provider-url"); got != want {
+			t.Errorf("Options.ProviderURL did not propagate; got %q, want %q", got, want)
+		}
+	})
+}
+
 func TestSessionManagement(t *testing.T) {
 	if os.Getenv("ANTHROPIC_API_KEY") == "" {
 		t.Skip("Skipping test: ANTHROPIC_API_KEY not set")
@@ -81,3 +302,7 @@ func TestSessionManagement(t *testing.T) {
 		t.Error("Expected non-empty session ID")
 	}
 }
+
+// resetViper wipes viper's global state so a test case doesn't leak
+// viper.Set() calls into the next one. Used via defer in subtests.
+func resetViper() { viper.Reset() }

pkg/kit/mcp_dynamic_test.go

@@ -0,0 +1,56 @@
+package kit_test
+
+import (
+	"testing"
+
+	kit "github.com/mark3labs/kit/pkg/kit"
+)
+
+// TestMCPServerStatus_TypeSurface verifies the MCPServerStatus type is
+// accessible and has the expected fields.
+func TestMCPServerStatus_TypeSurface(t *testing.T) {
+	s := kit.MCPServerStatus{
+		Name:      "test-server",
+		ToolCount: 5,
+	}
+	if s.Name != "test-server" {
+		t.Errorf("Expected Name 'test-server', got %q", s.Name)
+	}
+	if s.ToolCount != 5 {
+		t.Errorf("Expected ToolCount 5, got %d", s.ToolCount)
+	}
+}
+
+// TestMCPServerConfig_ForDynamicAdd verifies that MCPServerConfig can be
+// constructed with the expected fields for dynamic server management.
+func TestMCPServerConfig_ForDynamicAdd(t *testing.T) {
+	// Stdio server config.
+	stdio := kit.MCPServerConfig{
+		Command:     []string{"npx", "-y", "@modelcontextprotocol/server-github"},
+		Environment: map[string]string{"GITHUB_TOKEN": "test-token"},
+	}
+	if len(stdio.Command) != 3 {
+		t.Errorf("Expected 3 command parts, got %d", len(stdio.Command))
+	}
+	if stdio.Environment["GITHUB_TOKEN"] != "test-token" {
+		t.Error("Expected GITHUB_TOKEN in environment")
+	}
+
+	// Remote server config.
+	remote := kit.MCPServerConfig{
+		URL:     "https://mcp.example.com/sse",
+		Headers: []string{"Authorization: Bearer test"},
+	}
+	if remote.URL != "https://mcp.example.com/sse" {
+		t.Errorf("Unexpected URL: %s", remote.URL)
+	}
+
+	// Config with tool filtering.
+	filtered := kit.MCPServerConfig{
+		Command:      []string{"some-server"},
+		AllowedTools: []string{"read", "write"},
+	}
+	if len(filtered.AllowedTools) != 2 {
+		t.Errorf("Expected 2 allowed tools, got %d", len(filtered.AllowedTools))
+	}
+}

pkg/kit/models.go

@@ -22,11 +22,6 @@ func GetLLMProviders() []string {
 	return models.GetGlobalRegistry().GetLLMProviders()
 }
 
-// Deprecated: Use GetLLMProviders instead.
-func GetFantasyProviders() []string {
-	return GetLLMProviders()
-}
-
 // GetModelsForProvider returns all known models for a provider.
 func GetModelsForProvider(provider string) (map[string]ModelInfo, error) {
 	return models.GetGlobalRegistry().GetModelsForProvider(provider)

pkg/kit/oauth.go

@@ -5,18 +5,18 @@ import (
 	"fmt"
 	"net"
 	"net/http"
-	"os/exec"
-	"runtime"
 	"sync"
 	"time"
 )
 
 // MCPAuthHandler handles OAuth authorization for MCP servers.
 // Implementations control the user experience — opening a browser, showing a
-// prompt, displaying a URL, etc.
+// prompt, displaying a URL, posting to a message bus, etc.
 //
-// The default implementation ([DefaultMCPAuthHandler]) opens the system browser
-// and starts a local HTTP callback server to receive the authorization code.
+// [DefaultMCPAuthHandler] provides the transport mechanics (port reservation
+// and callback server) but performs no user-facing I/O on its own; consumers
+// wire presentation via [DefaultMCPAuthHandler.OnAuthURL] or implement
+// MCPAuthHandler from scratch.
 type MCPAuthHandler interface {
 	// RedirectURI returns the OAuth redirect URI that the callback server
 	// will listen on. This is called during MCP transport setup — before any
@@ -37,23 +37,44 @@ type MCPAuthHandler interface {
 	HandleAuth(ctx context.Context, serverName string, authURL string) (callbackURL string, err error)
 }
 
-// DefaultMCPAuthHandler opens the system browser and starts a local HTTP
-// callback server to receive the OAuth authorization code. It eagerly reserves
-// a TCP port on construction so [RedirectURI] is stable for the lifetime of
-// the handler.
+// DefaultMCPAuthHandler provides the transport mechanics of an OAuth flow —
+// reserving a local TCP port and running a one-shot HTTP callback server —
+// without making any user-experience decisions. It performs no browser opens,
+// no printing, no TUI calls; consumers attach presentation by setting
+// [DefaultMCPAuthHandler.OnAuthURL] or by wrapping the handler.
 //
-// Create instances with [NewDefaultMCPAuthHandler] (random port) or
-// [NewDefaultMCPAuthHandlerWithPort] (explicit port).
+// The handler eagerly reserves a TCP port on construction so [RedirectURI] is
+// stable for the lifetime of the handler. Create instances with
+// [NewDefaultMCPAuthHandler] (random port) or [NewDefaultMCPAuthHandlerWithPort]
+// (explicit port). Always call [DefaultMCPAuthHandler.Close] when done to
+// release the port.
 type DefaultMCPAuthHandler struct {
 	listener net.Listener
 	port     int
 	mu       sync.Mutex // guards listener lifecycle
+
+	// OnAuthURL, if set, is invoked exactly once per [HandleAuth] call with
+	// the authorization URL the user must visit. This is where consumers
+	// plug in their UX: open a browser, print to stderr, post to a TUI
+	// stream, render a QR code, etc. The handler performs no I/O on the
+	// URL itself; if OnAuthURL is nil the URL is silently dropped and the
+	// user has no way to complete the flow.
+	//
+	// OnAuthURL is called synchronously before the handler blocks on the
+	// callback. It must not block indefinitely — long-running work should
+	// be dispatched to a goroutine.
+	OnAuthURL func(serverName, authURL string)
 }
 
 // NewDefaultMCPAuthHandler creates a handler that listens on a random
 // available port on localhost. The port is reserved immediately so
 // [RedirectURI] returns a stable value. Call [DefaultMCPAuthHandler.Close]
 // when the handler is no longer needed to release the port.
+//
+// The returned handler has no OnAuthURL hook configured and will therefore
+// appear to hang on HandleAuth until the context deadline fires. Set
+// OnAuthURL before using the handler, or use a higher-level wrapper such
+// as [CLIMCPAuthHandler].
 func NewDefaultMCPAuthHandler() (*DefaultMCPAuthHandler, error) {
 	listener, err := net.Listen("tcp", "localhost:0")
 	if err != nil {
@@ -88,9 +109,9 @@ func (h *DefaultMCPAuthHandler) Port() int {
 	return h.port
 }
 
-// HandleAuth opens the system browser to authURL and waits for the OAuth
-// callback on the local server. It returns the full callback URL including
-// query parameters (code, state, etc.).
+// HandleAuth invokes [OnAuthURL] with the authorization URL (if configured)
+// and waits for the OAuth callback on the local server. It returns the full
+// callback URL including query parameters (code, state, etc.).
 //
 // If the context has no deadline, a default 2-minute timeout is applied.
 // The callback server is started for each HandleAuth call and shut down
@@ -136,19 +157,13 @@ func (h *DefaultMCPAuthHandler) HandleAuth(ctx context.Context, serverName strin
 		Handler: mux,
 	}
 
-	// Start serving on the pre-reserved listener. We need to create a new
-	// listener on the same port because http.Server.Serve takes ownership
-	// and closes the listener when done. The original listener is kept open
-	// to reserve the port; we create a second listener via SO_REUSEADDR
-	// semantics (Go's default on most platforms) or, more reliably, we
-	// temporarily release and re-acquire.
-	//
-	// Strategy: use the held listener directly for Serve. After Serve
-	// returns (due to Shutdown), re-acquire the listener to keep the port
-	// reserved for future HandleAuth calls.
+	// Start serving on the pre-reserved listener. http.Server.Serve takes
+	// ownership and closes the listener when Shutdown is called, so we
+	// re-acquire a fresh listener on the same port in the deferred cleanup
+	// below to keep the port reserved for subsequent HandleAuth calls.
 	h.mu.Lock()
 	serveListener := h.listener
-	h.listener = nil // Serve will close it
+	h.listener = nil
 	h.mu.Unlock()
 
 	if serveListener == nil {
@@ -184,10 +199,11 @@ func (h *DefaultMCPAuthHandler) HandleAuth(ctx context.Context, serverName strin
 		}
 	}()
 
-	// Open the system browser.
-	if err := openBrowser(authURL); err != nil {
-		// Browser open is best-effort; the user can still navigate manually.
-		_ = err
+	// Surface the authorization URL to the consumer. This is the single
+	// presentation seam: the SDK itself does not open browsers, print,
+	// or otherwise touch the user's environment.
+	if h.OnAuthURL != nil {
+		h.OnAuthURL(serverName, authURL)
 	}
 
 	// Wait for the callback, a server error, or context cancellation.
@@ -214,22 +230,6 @@ func (h *DefaultMCPAuthHandler) Close() error {
 	return nil
 }
 
-// openBrowser opens the default system browser to the given URL. This is a
-// best-effort operation — errors are returned but callers typically ignore
-// them since the user can navigate manually.
-func openBrowser(url string) error {
-	switch runtime.GOOS {
-	case "linux":
-		return exec.Command("xdg-open", url).Start()
-	case "windows":
-		return exec.Command("rundll32", "url.dll,FileProtocolHandler", url).Start()
-	case "darwin":
-		return exec.Command("open", url).Start()
-	default:
-		return fmt.Errorf("unsupported platform: %s", runtime.GOOS)
-	}
-}
-
 // oauthSuccessHTML is the HTML page returned to the browser after a
 // successful OAuth callback.
 const oauthSuccessHTML = `<!DOCTYPE html>

pkg/kit/oauth_cli.go

@@ -5,32 +5,49 @@ import (
 	"fmt"
 	"io"
 	"os"
+	"os/exec"
+	"runtime"
 )
 
-// CLIMCPAuthHandler wraps a [DefaultMCPAuthHandler] and prints status messages
-// to a writer (typically stderr) so the user knows what's happening during
-// OAuth authorization. This is the handler used by the CLI/TUI binary.
+// CLIMCPAuthHandler is the MCP OAuth handler for CLI/TUI consumers. It wraps
+// a [DefaultMCPAuthHandler] and layers standard CLI behavior on top of the
+// underlying transport mechanics:
 //
-// For TUI integration, set NotifyFunc to route messages through the TUI's
-// event system instead of (or in addition to) the writer.
+//   - Opens the authorization URL in the system browser
+//   - Prints status messages (or routes them to a TUI via [NotifyFunc])
+//
+// Non-CLI consumers (web apps, daemons, custom TUIs) should not use this
+// handler; implement [MCPAuthHandler] directly or configure a
+// [DefaultMCPAuthHandler] with a custom OnAuthURL instead.
 type CLIMCPAuthHandler struct {
 	inner *DefaultMCPAuthHandler
 	w     io.Writer
 
-	// NotifyFunc, when set, is called with status messages instead of writing
-	// to the writer. This allows the TUI to display system messages in the
-	// chat stream. If nil, messages are written to w.
+	// NotifyFunc, when set, is called with status messages instead of
+	// writing to the writer. This allows the TUI to display system
+	// messages in the chat stream. If nil, messages are written to w.
 	NotifyFunc func(serverName, message string)
 }
 
 // NewCLIMCPAuthHandler creates a CLI auth handler that prints status messages
-// to stderr and delegates the actual OAuth flow to a [DefaultMCPAuthHandler].
+// to stderr, opens the authorization URL in the system browser, and delegates
+// the callback-server mechanics to a [DefaultMCPAuthHandler].
 func NewCLIMCPAuthHandler() (*CLIMCPAuthHandler, error) {
 	inner, err := NewDefaultMCPAuthHandler()
 	if err != nil {
 		return nil, err
 	}
-	return &CLIMCPAuthHandler{inner: inner, w: os.Stderr}, nil
+	h := &CLIMCPAuthHandler{inner: inner, w: os.Stderr}
+	// Wire the CLI presentation policy into the inner handler's hook.
+	// This is the one place in the codebase where OAuth triggers a
+	// browser open; the SDK core remains I/O-free.
+	inner.OnAuthURL = func(serverName, authURL string) {
+		h.notify(serverName, fmt.Sprintf("🔐 MCP server %q requires authentication. Opening browser...", serverName))
+		h.notify(serverName, fmt.Sprintf("   If the browser doesn't open, visit:\n   %s", authURL))
+		// Browser open is best-effort; the user can still navigate manually.
+		_ = openBrowser(authURL)
+	}
+	return h, nil
 }
 
 // RedirectURI returns the OAuth redirect URI from the inner handler.
@@ -38,17 +55,15 @@ func (h *CLIMCPAuthHandler) RedirectURI() string {
 	return h.inner.RedirectURI()
 }
 
-// HandleAuth prints status messages and delegates to the inner handler.
+// HandleAuth delegates to the inner handler (which invokes OnAuthURL, runs
+// the callback server, and returns the full callback URL) and emits a final
+// success or failure notification.
 func (h *CLIMCPAuthHandler) HandleAuth(ctx context.Context, serverName string, authURL string) (string, error) {
-	h.notify(serverName, fmt.Sprintf("🔐 MCP server %q requires authentication. Opening browser...", serverName))
-	h.notify(serverName, fmt.Sprintf("   If the browser doesn't open, visit:\n   %s", authURL))
-
 	callbackURL, err := h.inner.HandleAuth(ctx, serverName, authURL)
 	if err != nil {
 		h.notify(serverName, fmt.Sprintf("✗ Authentication failed for %q: %v", serverName, err))
 		return "", err
 	}
-
 	h.notify(serverName, fmt.Sprintf("✓ Authenticated with %q", serverName))
 	return callbackURL, nil
 }
@@ -66,3 +81,20 @@ func (h *CLIMCPAuthHandler) notify(serverName, message string) {
 	}
 	_, _ = fmt.Fprintln(h.w, message)
 }
+
+// openBrowser opens the system default browser at url. Intentionally
+// unexported: browser opening is CLI policy, not SDK surface. Consumers
+// that need similar behavior for their own UX should bring their own
+// helper (or use a third-party package like github.com/pkg/browser).
+func openBrowser(url string) error {
+	switch runtime.GOOS {
+	case "linux":
+		return exec.Command("xdg-open", url).Start()
+	case "windows":
+		return exec.Command("rundll32", "url.dll,FileProtocolHandler", url).Start()
+	case "darwin":
+		return exec.Command("open", url).Start()
+	default:
+		return fmt.Errorf("unsupported platform: %s", runtime.GOOS)
+	}
+}

pkg/kit/types.go

@@ -11,6 +11,8 @@ import (
 	"github.com/mark3labs/kit/internal/message"
 	"github.com/mark3labs/kit/internal/models"
 	"github.com/mark3labs/kit/internal/session"
+	"github.com/mark3labs/mcp-go/client/transport"
+	"github.com/mark3labs/mcp-go/server"
 )
 
 // ==== Message Types (internal/message/content.go) ====
@@ -128,9 +130,9 @@ type SpinnerFunc = agent.SpinnerFunc
 
 // ==== LLM Types ====
 //
-// These are type aliases for the corresponding charm.land/fantasy types,
-// giving them clean LLM-prefixed names without leaking the dependency name.
-// SDK consumers can use these types without importing charm.land/fantasy directly.
+// These are type aliases for the underlying LLM provider types, giving them
+// clean LLM-prefixed names without leaking the dependency name. SDK consumers
+// can use these types without importing the provider package directly.
 
 // LLMMessage represents a message in an LLM conversation, carrying a role
 // and a slice of typed content parts (text, tool calls, reasoning, etc.).
@@ -176,7 +178,7 @@ type LLMMessageRole = fantasy.MessageRole
 // LLMFinishReason indicates why the LLM stopped generating.
 type LLMFinishReason = fantasy.FinishReason
 
-// LLM role constants mirror fantasy.MessageRole* values under clean LLM-prefixed names.
+// LLM role constants mirror the provider's role values under clean LLM-prefixed names.
 const (
 	// LLMRoleUser identifies a user message.
 	LLMRoleUser = fantasy.MessageRoleUser
@@ -189,11 +191,11 @@ const (
 )
 
 // NewLLMUserMessage constructs a user-role LLMMessage with optional file
-// attachments. It is equivalent to fantasy.NewUserMessage.
+// attachments.
 var NewLLMUserMessage = fantasy.NewUserMessage
 
 // NewLLMSystemMessage constructs a system-role LLMMessage from one or more
-// prompt strings. It is equivalent to fantasy.NewSystemMessage.
+// prompt strings.
 var NewLLMSystemMessage = fantasy.NewSystemMessage
 
 // ==== Compaction Types (internal/compaction/) ====
@@ -204,6 +206,35 @@ type CompactionResult = compaction.CompactionResult
 // CompactionOptions configures compaction behaviour.
 type CompactionOptions = compaction.CompactionOptions
 
+// ==== MCP OAuth Types ====
+
+// MCPServer is an in-process MCP server from the mcp-go library.
+// Pass an instance to [Kit.AddInProcessMCPServer] or
+// [Options.InProcessMCPServers] to register tools without spawning a
+// subprocess or making network calls.
+type MCPServer = server.MCPServer
+
+// MCPTokenStore persists OAuth tokens for a single MCP server. Implementations
+// must be safe for concurrent use.
+//
+// This is a type alias for the mcp-go transport.TokenStore interface. SDK
+// consumers can implement this interface to provide custom storage backends
+// (database, encrypted file, in-memory, etc.).
+type MCPTokenStore = transport.TokenStore
+
+// MCPToken represents an OAuth token for an MCP server, containing access
+// and refresh tokens along with expiration metadata.
+type MCPToken = transport.Token
+
+// MCPTokenStoreFactory creates an [MCPTokenStore] for a given MCP server URL.
+// It is called once per remote MCP server during connection setup.
+type MCPTokenStoreFactory func(serverURL string) (MCPTokenStore, error)
+
+// ErrMCPNoToken is the sentinel error that [MCPTokenStore] implementations
+// should return from GetToken when no token is stored for the server.
+// Callers can check for this with errors.Is.
+var ErrMCPNoToken = transport.ErrNoToken
+
 // ==== Constructor & Helper Functions ====
 
 // ParseModelString parses a model string in "provider/model" format.

pkg/kit/types_test.go

@@ -77,8 +77,8 @@ func TestLLMRoleConstants(t *testing.T) {
 	}
 }
 
-// TestLLMMessageAlias verifies LLMMessage is a type alias for fantasy.Message
-// and can be used interchangeably.
+// TestLLMMessageAlias verifies LLMMessage is a type alias for the underlying
+// LLM provider message type and can be used interchangeably.
 func TestLLMMessageAlias(t *testing.T) {
 	// Construct an LLMMessage using alias types.
 	msg := kit.LLMMessage{
@@ -132,8 +132,8 @@ func TestNewLLMSystemMessage(t *testing.T) {
 	}
 }
 
-// TestLLMUsageAlias verifies LLMUsage is a type alias for fantasy.Usage
-// and carries the correct fields.
+// TestLLMUsageAlias verifies LLMUsage is a type alias for the underlying
+// LLM provider usage type and carries the correct fields.
 func TestLLMUsageAlias(t *testing.T) {
 	u := kit.LLMUsage{
 		InputTokens:         100,
@@ -150,7 +150,7 @@ func TestLLMUsageAlias(t *testing.T) {
 		t.Errorf("LLMUsage.TotalTokens = %d, want 150", u.TotalTokens)
 	}
 
-	// Verify JSON marshaling uses snake_case (inherited from fantasy.Usage tags).
+	// Verify JSON marshaling uses snake_case (inherited from the provider's tags).
 	data, err := json.Marshal(u)
 	if err != nil {
 		t.Fatalf("LLMUsage.MarshalJSON: %v", err)
@@ -165,7 +165,8 @@ func TestLLMUsageAlias(t *testing.T) {
 	}
 }
 
-// TestLLMFilePartAlias verifies LLMFilePart is a type alias for fantasy.FilePart.
+// TestLLMFilePartAlias verifies LLMFilePart is a type alias for the underlying
+// LLM provider file part type.
 func TestLLMFilePartAlias(t *testing.T) {
 	fp := kit.LLMFilePart{
 		Filename:  "screenshot.png",

scripts/acp_smoke_test.py

@@ -17,7 +17,7 @@ import time
 import os
 
 KIT_BIN = os.path.join(os.path.dirname(__file__), "..", "output", "kit")
-MODEL   = "opencode/kimi-k2.5"
+MODEL   = os.environ.get("MODEL", "opencode/kimi-k2.5")
 CWD     = os.path.expanduser("~")
 TIMEOUT = 60  # seconds to wait for the prompt to complete
 

skills/kit-extensions/SKILL.md

@@ -93,7 +93,7 @@ api.OnAgentEnd(func(e ext.AgentEndEvent, ctx ext.Context) {
     // e.Response string
     // e.StopReason string — "error" (on failure), "completed" (when LLM returns
     //   empty stop reason), or the raw LLM provider value passed through
-    //   (e.g. "stop", "end_turn", "max_tokens", "tool_use").
+    //   (e.g. "stop", "length" (max output tokens hit), "tool-calls", "content-filter").
     //   To detect errors, check e.StopReason == "error".
     //   Do NOT compare against "completed" for success — instead check != "error".
 })

skills/kit-sdk/SKILL.md

@@ -80,6 +80,23 @@ host, err := kit.New(ctx, &kit.Options{
     Quiet:     true, // suppress debug output
     Debug:     true, // enable debug logging
 
+    // Generation parameters — override env/config/per-model defaults.
+    // Leaving a field at its zero/nil value lets the precedence chain
+    // resolve a value (KIT_* env → .kit.yml → modelSettings/customModels →
+    // 8192 floor for MaxTokens, provider defaults for samplers).
+    MaxTokens:        16384,             // 0 = auto-resolve; non-zero suppresses right-sizing
+    ThinkingLevel:    "medium",          // "off", "none", "minimal", "low", "medium", "high" ("" = default)
+    Temperature:      ptrFloat32(0.2),   // pointer so explicit 0.0 != unset
+    TopP:             nil,                // nil = leave provider/per-model default
+    TopK:             nil,                // nil = leave provider/per-model default
+    FrequencyPenalty: nil,
+    PresencePenalty:  nil,
+
+    // Provider configuration — override env/config without viper.Set workarounds.
+    ProviderAPIKey: "sk-...",                    // "" = use config / provider env var
+    ProviderURL:    "https://proxy.internal/v1", // "" = provider default endpoint
+    TLSSkipVerify:  false,                       // true only; can't force-disable via Options
+
     // Session
     SessionDir:  "/path/to/project",  // base dir for session discovery (default: cwd)
     SessionPath: "/path/to/session.jsonl", // open specific session file
@@ -98,15 +115,59 @@ host, err := kit.New(ctx, &kit.Options{
     // Skills
     Skills:    []string{"/path/to/skill.md"}, // explicit skill files (empty = auto-discover)
     SkillsDir: "/path/to/skills",             // override project-local skills dir
+    NoSkills:  true,                          // disable skill loading entirely
+
+    // Feature toggles
+    NoExtensions:   true,                     // disable Yaegi extension loading entirely
+    NoContextFiles: true,                     // disable automatic AGENTS.md loading
 
     // Compaction
     AutoCompact:       true,                        // auto-compact near context limit
     CompactionOptions: &kit.CompactionOptions{...}, // nil = defaults
+
+    // MCP OAuth — both fields are opt-in. If MCPAuthHandler is nil,
+    // remote MCP servers that require OAuth will fail to connect with
+    // an authorization-required error instead of silently opening a
+    // browser. CLI consumers use NewCLIMCPAuthHandler; other embedders
+    // implement MCPAuthHandler or configure DefaultMCPAuthHandler.
+    MCPAuthHandler: mcpAuthHandler,             // nil = OAuth disabled
+    MCPTokenStoreFactory: func(serverURL string) (kit.MCPTokenStore, error) {
+        return myCustomStore(serverURL), nil  // custom OAuth token storage
+    },
+
+    // In-Process MCP Servers
+    InProcessMCPServers: map[string]*kit.MCPServer{
+        "docs": mcpSrv,  // *server.MCPServer from mcp-go — no subprocess needed
+    },
 })
+
+// Tiny helper to take the address of a literal for pointer fields.
+func ptrFloat32(v float32) *float32 { return &v }
 ```
 
 **Critical distinction**: `Tools` replaces ALL default tools (core + MCP + extension). `ExtraTools` adds tools alongside the defaults. Use `Tools` to restrict the agent's capabilities; use `ExtraTools` to extend them.
 
+**In-process MCP servers** bypass subprocess spawning entirely. Pass `*server.MCPServer` instances from mcp-go via `InProcessMCPServers` or call `AddInProcessMCPServer()` at runtime.
+
+### Generation & provider Options (cheat sheet)
+
+| Field | Type | Empty/nil means | Notes |
+|-------|------|-----------------|-------|
+| `MaxTokens` | `int` | Auto-resolve (env → config → per-model → 8192 floor) | Non-zero suppresses `rightSizeMaxTokens` |
+| `ThinkingLevel` | `string` | Auto-resolve (→ `"off"`) | Valid: `"off"`, `"none"`, `"minimal"`, `"low"`, `"medium"`, `"high"` |
+| `Temperature` | `*float32` | Leave provider/per-model default | Pointer so explicit `0.0` ≠ unset |
+| `TopP` | `*float32` | Leave provider/per-model default | |
+| `TopK` | `*int32` | Leave provider/per-model default | |
+| `FrequencyPenalty` | `*float32` | Leave provider/per-model default | OpenAI-family |
+| `PresencePenalty` | `*float32` | Leave provider/per-model default | OpenAI-family |
+| `ProviderAPIKey` | `string` | Use config / provider env var | Overrides pre-existing viper state |
+| `ProviderURL` | `string` | Use provider default endpoint | Same base URL flag as `--provider-url` |
+| `TLSSkipVerify` | `bool` | — | Only effective when `true`; cannot force-disable via Options |
+
+These fields eliminate the old `viper.Set("max-tokens", 16384)` dance many
+downstream embedders used to do before calling `kit.New()`. Everything is
+now discoverable via godoc on `kit.Options`.
+
 ---
 
 ## Prompt Methods
@@ -125,8 +186,12 @@ result, err := host.PromptResult(ctx, "Analyze this file")
 // result.StopReason   — "stop", "length", "tool-calls", "error", etc.
 // result.SessionID    — session UUID
 // result.TotalUsage   — aggregate tokens across all steps (*kit.LLMUsage)
-//                        LLMUsage{InputTokens, OutputTokens, TotalTokens, ...}
+//                        LLMUsage{InputTokens, OutputTokens, TotalTokens,
+//                                 ReasoningTokens, CacheCreationTokens, CacheReadTokens}
 // result.FinalUsage   — tokens from last API call only (*kit.LLMUsage)
+//                        For context window fill, sum: InputTokens + CacheReadTokens +
+//                        CacheCreationTokens + OutputTokens (with prompt caching,
+//                        InputTokens alone understates the context)
 // result.Messages     — full updated conversation ([]kit.LLMMessage)
 //                        LLMMessage{Role kit.LLMMessageRole, Content string}
 ```
@@ -249,6 +314,27 @@ unsub := host.Subscribe(func(e kit.Event) {
 | `reasoning_delta` | `ReasoningDeltaEvent` | `Delta` |
 | `step_usage` | `StepUsageEvent` | `InputTokens`, `OutputTokens`, `CacheReadTokens`, `CacheWriteTokens` |
 | `steer_consumed` | `SteerConsumedEvent` | `Count` |
+| `password_prompt` | `PasswordPromptEvent` | `Prompt`, `ResponseCh` |
+
+**PasswordPromptEvent** (for sudo password handling):
+```go
+// 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 {
+    // Prompt is the message to display to the user.
+    Prompt string
+    // ResponseCh receives the password from the TUI.
+    // The TUI must send exactly one value: (password, false) for submit
+    // or ("", true) for cancel.
+    ResponseCh chan<- PasswordPromptResponse
+}
+
+// PasswordPromptResponse carries the password prompt result.
+type PasswordPromptResponse struct {
+    Password  string
+    Cancelled bool
+}
+```
 
 ### Tool kind constants
 
@@ -466,6 +552,7 @@ names := host.GetToolNames()       // []string of all tool names
 tools := host.GetTools()           // []kit.Tool (full tool objects)
 mcpCount := host.GetMCPToolCount() // tools from MCP servers
 extCount := host.GetExtensionToolCount() // tools from extensions
+ready := host.MCPToolsReady()      // true when async MCP tool loading is complete
 ```
 
 ---
@@ -618,6 +705,196 @@ Always `"provider/model"`: `"anthropic/claude-sonnet-4-5-20250929"`, `"openai/gp
 provider, modelID, err := kit.ParseModelString("anthropic/claude-sonnet-4-5-20250929")
 ```
 
+### Per-model system prompts
+
+Models can have per-model system prompts configured via `modelSettings` or `customModels` in `.kit.yml`. When the user hasn't explicitly set a system prompt (via `--system-prompt`, config, or `Options.SystemPrompt`), the per-model prompt is used as the base and composed with AGENTS.md context and skills.
+
+On `SetModel()`, if the new model has a per-model system prompt and no custom global prompt was set, the per-model prompt automatically replaces the previous one.
+
+### Per-model generation parameters
+
+Models can define default generation parameters (`temperature`, `top_p`, `top_k`, `frequency_penalty`, `presence_penalty`) via `modelSettings` or `customModels` `params` in `.kit.yml`. These defaults apply when the user hasn't explicitly set the parameter. Explicit CLI flags or config values always take priority.
+
+---
+
+## Dynamic MCP Server Management
+
+Add, remove, and inspect MCP servers at runtime without restarting Kit:
+
+```go
+// Add a new MCP server — tools become available immediately
+n, err := host.AddMCPServer(ctx, "github", kit.MCPServerConfig{
+    Command:     []string{"npx", "-y", "@modelcontextprotocol/server-github"},
+    Environment: map[string]string{"GITHUB_TOKEN": os.Getenv("GITHUB_TOKEN")},
+})
+fmt.Printf("Loaded %d tools from github server\n", n)
+
+// Remove an MCP server — its tools are no longer available
+err = host.RemoveMCPServer("github")
+
+// List all currently loaded MCP servers
+servers := host.ListMCPServers()
+for _, s := range servers {
+    fmt.Printf("Server %s: %d tools\n", s.Name, s.ToolCount)
+}
+```
+
+`AddMCPServer` is safe to call while the agent is idle. If a turn is in progress, new tools are visible starting from the next LLM step. Tool names are prefixed with the server name (e.g. `"github__create_issue"`).
+
+### In-Process MCP Servers
+
+Register mcp-go servers that run in the same process — no subprocess spawning,
+no network I/O:
+
+```go
+import (
+    "github.com/mark3labs/mcp-go/mcp"
+    "github.com/mark3labs/mcp-go/server"
+)
+
+mcpSrv := server.NewMCPServer("my-tools", "1.0.0",
+    server.WithToolCapabilities(true),
+)
+mcpSrv.AddTool(mcp.NewTool("search_docs",
+    mcp.WithDescription("Search documentation"),
+    mcp.WithString("query", mcp.Required()),
+), searchHandler)
+
+// At init time
+host, _ := kit.New(ctx, &kit.Options{
+    InProcessMCPServers: map[string]*kit.MCPServer{
+        "docs": mcpSrv,
+    },
+})
+
+// Or at runtime
+n, err := host.AddInProcessMCPServer(ctx, "docs", mcpSrv)
+```
+
+Kit does not own the server lifecycle — the caller handles cleanup. Tools are prefixed as usual (e.g. `"docs__search_docs"`).
+
+### MCP Prompts
+
+Query and expand prompts defined by connected MCP servers:
+
+```go
+// List all prompts from all connected MCP servers
+prompts := host.ListMCPPrompts()
+for _, p := range prompts {
+    fmt.Printf("%s/%s: %s\n", p.ServerName, p.Name, p.Description)
+    for _, arg := range p.Arguments {
+        fmt.Printf("  arg: %s (required: %v)\n", arg.Name, arg.Required)
+    }
+}
+
+// Expand a specific prompt with arguments
+result, err := host.GetMCPPrompt(ctx, "myserver", "code-review", map[string]string{
+    "language": "go",
+    "style":    "thorough",
+})
+// result.Description — optional server description
+// result.Messages — []MCPPromptMessage with Role, Content, and FileParts
+for _, msg := range result.Messages {
+    fmt.Printf("[%s] %s\n", msg.Role, msg.Content)
+    // msg.FileParts contains binary attachments (images, embedded resources)
+}
+```
+
+### MCP Resources
+
+Read and subscribe to resources exposed by MCP servers:
+
+```go
+// List all resources from connected servers
+resources := host.ListMCPResources()
+for _, r := range resources {
+    fmt.Printf("%s: %s (%s)\n", r.URI, r.Name, r.MIMEType)
+}
+
+// Read a specific resource
+content, err := host.ReadMCPResource(ctx, "myserver", "file:///path/to/file")
+if content.IsBlob {
+    // Binary content in content.BlobData
+} else {
+    // Text content in content.Text
+}
+
+// Subscribe to resource change notifications
+err = host.SubscribeMCPResource(ctx, "myserver", "file:///path/to/file")
+// Unsubscribe later
+err = host.UnsubscribeMCPResource(ctx, "myserver", "file:///path/to/file")
+```
+
+### MCP OAuth Authorization
+
+When a remote MCP server requires OAuth, Kit runs the full authorization flow
+(dynamic client registration → PKCE → user consent → token exchange → token
+persistence) but delegates the **user-facing step** — displaying the
+authorization URL and receiving the callback — to an `MCPAuthHandler`.
+
+The SDK ships three building blocks:
+
+| Building block | When to use |
+|---|---|
+| **No handler** (`Options.MCPAuthHandler = nil`) | Default. OAuth is disabled; 401s from remote MCP servers surface as errors. Correct for library, daemon, and web-app embedders that don't want side effects. |
+| **`kit.NewCLIMCPAuthHandler()`** | CLI/TUI apps. Opens the system browser, prints status to stderr (or via `NotifyFunc`), runs a localhost callback server. This is what the `kit` binary uses. |
+| **`kit.NewDefaultMCPAuthHandler()` + `OnAuthURL`** | Custom UX. Get the transport mechanics (port reservation + callback server) from the SDK; wire your own presentation in the `OnAuthURL(serverName, authURL)` closure. |
+| **Implement `kit.MCPAuthHandler` directly** | Full control. No localhost binding — e.g. return the URL from an HTTP endpoint and have the consumer POST the callback URL back. |
+
+**CLI-style embedder (browser + stderr):**
+
+```go
+authHandler, err := kit.NewCLIMCPAuthHandler()
+if err != nil {
+    log.Fatal(err)
+}
+defer authHandler.Close() // release the reserved port
+
+host, _ := kit.New(ctx, &kit.Options{
+    MCPAuthHandler: authHandler,
+})
+```
+
+**Custom UX embedder (TUI modal, QR code, web redirect, etc.):**
+
+```go
+authHandler, _ := kit.NewDefaultMCPAuthHandler()
+authHandler.OnAuthURL = func(serverName, authURL string) {
+    // Render the URL however you like — no browser or terminal assumptions.
+    myUI.ShowAuthPrompt(serverName, authURL)
+}
+defer authHandler.Close()
+
+host, _ := kit.New(ctx, &kit.Options{
+    MCPAuthHandler: authHandler,
+})
+```
+
+**Important:** `DefaultMCPAuthHandler` with no `OnAuthURL` set will silently
+drop the authorization URL and block until the 2-minute callback timeout
+fires. Always set `OnAuthURL`, or use a higher-level wrapper like
+`CLIMCPAuthHandler`.
+
+### MCP OAuth Token Storage
+
+Once authorization succeeds, the resulting access/refresh tokens are persisted
+by an `MCPTokenStore`. By default tokens are written to
+`$XDG_CONFIG_HOME/.kit/mcp_tokens.json` (fallback `~/.config/.kit/mcp_tokens.json`),
+keyed by server URL, with `0600` file permissions.
+
+Provide a custom store for encrypted storage, database persistence, or
+in-memory-only flows:
+
+```go
+host, _ := kit.New(ctx, &kit.Options{
+    MCPTokenStoreFactory: func(serverURL string) (kit.MCPTokenStore, error) {
+        return &MyDatabaseTokenStore{serverURL: serverURL}, nil
+    },
+})
+```
+
+The `MCPTokenStore` interface requires `GetToken`/`SetToken`/`DeleteToken` methods. Return `kit.ErrMCPNoToken` from `GetToken` when no token is stored.
+
 ---
 
 ## Context & Compaction
@@ -625,9 +902,12 @@ provider, modelID, err := kit.ParseModelString("anthropic/claude-sonnet-4-5-2025
 ```go
 tokens := host.EstimateContextTokens()  // heuristic token count
 shouldCompact := host.ShouldCompact()    // true if near context limit
+// ShouldCompact() uses API-reported token counts (including cache tokens)
+// when available, falling back to text-based heuristic before the first turn.
 
 stats := host.GetContextStats()
-// stats.EstimatedTokens — uses API-reported count when available (more accurate)
+// stats.EstimatedTokens — uses API-reported count when available (more accurate;
+//                          includes system prompts, tool definitions, cache tokens)
 // stats.ContextLimit    — model's context window size
 // stats.UsagePercent    — fraction used (0.0–1.0)
 // stats.MessageCount    — number of messages
@@ -787,13 +1067,34 @@ kit.ProviderConfig, kit.ProviderResult, kit.ModelInfo, kit.ModelCost, kit.ModelL
 // LLM types — concrete Kit-owned structs (no external library dependency)
 kit.LLMMessage      // {Role LLMMessageRole, Content string}
 kit.LLMMessageRole  // "user" | "assistant" | "system" | "tool"
-kit.LLMUsage        // {InputTokens, OutputTokens, TotalTokens, ReasoningTokens, ...}
+kit.LLMUsage        // {InputTokens, OutputTokens, TotalTokens, ReasoningTokens,
+                     //  CacheCreationTokens, CacheReadTokens}
 kit.LLMResponse     // {Content, FinishReason, Usage}
 kit.LLMFilePart     // {Filename, Data []byte, MediaType}
 
 // Compaction types
 kit.CompactionResult, kit.CompactionOptions
 
+// MCP OAuth types
+kit.MCPAuthHandler         // interface: RedirectURI() + HandleAuth(ctx, server, authURL) for OAuth UX
+kit.DefaultMCPAuthHandler  // SDK-provided transport mechanics (port + callback server); set OnAuthURL hook
+kit.CLIMCPAuthHandler      // CLI wrapper around DefaultMCPAuthHandler: opens browser, prints status
+kit.NewDefaultMCPAuthHandler()         // random port, no UX side effects
+kit.NewDefaultMCPAuthHandlerWithPort() // fixed port (useful when registering a stable redirect URI)
+kit.NewCLIMCPAuthHandler()             // CLI handler: browser + stderr + localhost callback
+kit.MCPTokenStore        // interface for custom OAuth token storage
+kit.MCPToken             // OAuth token struct (access, refresh, expiry)
+kit.MCPTokenStoreFactory // func(serverURL string) (MCPTokenStore, error)
+kit.ErrMCPNoToken        // sentinel error for "no token stored"
+kit.MCPServer            // *server.MCPServer for in-process MCP transport
+kit.MCPServerStatus      // {Name string, ToolCount int}
+kit.MCPPrompt            // {Name, Description, Arguments []MCPPromptArgument, ServerName}
+kit.MCPPromptArgument    // {Name, Description string, Required bool}
+kit.MCPPromptMessage     // {Role, Content string, FileParts []LLMFilePart}
+kit.MCPPromptResult      // {Description string, Messages []MCPPromptMessage}
+kit.MCPResource          // {URI, Name, Description, MIMEType, ServerName}
+kit.MCPResourceContent   // {URI, MIMEType, Text string, BlobData []byte, IsBlob bool}
+
 // Conversion helpers
 msgs := kit.ConvertToLLMMessages(&msg)   // SDK Message  → []LLMMessage
 msg  := kit.ConvertFromLLMMessage(lMsg)  // LLMMessage   → SDK Message

www/pages/cli/commands.md

@@ -66,7 +66,7 @@ These commands are available inside the Kit TUI during an interactive session:
 | `/servers` | Show connected MCP servers |
 | `/model [name]` | Switch model or open model selector |
 | `/theme [name]` | Switch color theme or list available themes |
-| `/thinking [level]` | Set thinking level (off, minimal, low, medium, high) |
+| `/thinking [level]` | Set thinking level (off, none, minimal, low, medium, high) |
 | `/compact [focus]` | Summarize older messages to free context |
 | `/clear` | Clear conversation |
 | `/clear-queue` | Clear queued messages |
@@ -95,15 +95,19 @@ Press **ESC twice** to cancel the current operation:
 
 This ensures that `tool_use` and `tool_result` messages are always sent to the API as matched pairs, avoiding errors from orphaned tool calls.
 
+### External editor
+
+Press **Ctrl+X e** to open your `$VISUAL` or `$EDITOR` in a temporary file pre-populated with the current input text. On save and quit, the edited content replaces the input textarea. On error exit (e.g., `:cq` in Vim), the original input is preserved.
+
 ### Mid-turn steering
 
-Press **Ctrl+S** during streaming to inject a system-level instruction mid-turn. This allows you to steer the conversation direction without waiting for the model to finish:
+Press **Ctrl+X s** during streaming to inject a system-level instruction mid-turn. This allows you to steer the conversation direction without waiting for the model to finish:
 
 - Works during streaming output
 - Sends a steering instruction as a system message
 - Model continues from the interruption point with the new guidance
 
-Example: While the model is writing code, press Ctrl+S and type "Use async/await instead" to change the implementation approach.
+Example: While the model is writing code, press Ctrl+X s and type "Use async/await instead" to change the implementation approach.
 
 ## Prompt templates
 
@@ -134,10 +138,13 @@ Templates appear as slash commands:
 | Placeholder | Description |
 |-------------|-------------|
 | `$1`, `$2`, etc. | Individual arguments by position |
-| `$@`, `$ARGUMENTS` | All arguments joined with spaces |
+| `$@`, `$ARGUMENTS` | All arguments joined with spaces (zero or more) |
+| `$+` | All arguments joined with spaces (one or more required) |
 | `${@:N}` | Arguments from position N onwards |
 | `${@:N:L}` | L arguments starting at position N |
 
+Placeholders inside fenced code blocks (`` ``` ``) and inline code spans are ignored, so documentation examples won't be substituted.
+
 ### CLI flags
 
 ```bash

www/pages/cli/flags.md

@@ -52,12 +52,14 @@ These flags control Kit's behavior. When a prompt is passed as a positional argu
 
 | Flag | Short | Default | Description |
 |------|-------|---------|-------------|
-| `--max-tokens` | — | `4096` | Maximum tokens in response |
+| `--max-tokens` | — | `8192` | Base cap for output tokens. Auto-raised per-model up to 32768 when the model's catalog ceiling is higher and no explicit value is set. |
 | `--temperature` | — | `0.7` | Randomness 0.0–1.0 |
 | `--top-p` | — | `0.95` | Nucleus sampling 0.0–1.0 |
 | `--top-k` | — | `40` | Limit top K tokens |
 | `--stop-sequences` | — | — | Custom stop sequences (comma-separated) |
-| `--thinking-level` | — | `off` | Extended thinking level: off, minimal, low, medium, high |
+| `--frequency-penalty` | — | `0.0` | Penalize frequent tokens (0.0–2.0) |
+| `--presence-penalty` | — | `0.0` | Penalize present tokens (0.0–2.0) |
+| `--thinking-level` | — | `off` | Extended thinking level: off, none, minimal, low, medium, high |
 
 ## System
 

www/pages/configuration.md

@@ -18,7 +18,7 @@ Create `~/.kit.yml`:
 
 ```yaml
 model: anthropic/claude-sonnet-latest
-max-tokens: 4096
+max-tokens: 8192
 temperature: 0.7
 stream: true
 ```
@@ -28,7 +28,7 @@ stream: true
 | Key | Type | Default | Description |
 |-----|------|---------|-------------|
 | `model` | string | `anthropic/claude-sonnet-latest` | Model to use (provider/model format) |
-| `max-tokens` | int | `4096` | Maximum tokens in response |
+| `max-tokens` | int | `8192` | Base cap for output tokens. Auto-raised per-model up to 32768 when the model's catalog ceiling is higher and no explicit value is set. Use [`modelSettings[provider/model].maxTokens`](#per-model-settings) to override per-model. |
 | `temperature` | float | `0.7` | Randomness 0.0–1.0 |
 | `top-p` | float | `0.95` | Nucleus sampling 0.0–1.0 |
 | `top-k` | int | `40` | Limit top K tokens |
@@ -37,10 +37,12 @@ stream: true
 | `compact` | bool | `false` | Enable compact output mode |
 | `system-prompt` | string | — | System prompt text or file path |
 | `max-steps` | int | `0` | Maximum agent steps (0 = unlimited) |
-| `thinking-level` | string | `off` | Extended thinking: off, minimal, low, medium, high |
+| `thinking-level` | string | `off` | Extended thinking: off, none, minimal, low, medium, high |
 | `provider-api-key` | string | — | API key for the provider |
 | `provider-url` | string | — | Base URL for provider API |
 | `tls-skip-verify` | bool | `false` | Skip TLS certificate verification |
+| `frequency-penalty` | float | `0.0` | Penalize frequent tokens (0.0–2.0) |
+| `presence-penalty` | float | `0.0` | Penalize present tokens (0.0–2.0) |
 | `stop-sequences` | list | — | Custom stop sequences |
 | `theme` | object or string | — | UI theme ([inline overrides or file path](/themes)) |
 | `prompt-templates` | bool | `true` | Enable prompt template loading |
@@ -144,6 +146,53 @@ kit --provider-url "http://localhost:8080/v1" --model custom/my-model "Hello"
 
 When `--provider-url` is specified without `--model`, Kit defaults to `custom/custom` which has zero cost tracking and a 262K context window.
 
+## Per-model settings
+
+Override generation parameters and system prompt on a per-model basis using `modelSettings`:
+
+```yaml
+modelSettings:
+  anthropic/claude-sonnet-4-5-20250929:
+    temperature: 0.3
+    maxTokens: 8192
+    systemPrompt: "You are a concise coding assistant."
+  openai/gpt-4o:
+    temperature: 0.7
+    frequencyPenalty: 0.5
+```
+
+### Per-model fields
+
+| Field | Type | Description |
+|-------|------|-------------|
+| `temperature` | float | Temperature override for this model |
+| `maxTokens` | int | Max output tokens override |
+| `topP` | float | Top-p override |
+| `topK` | int | Top-k override |
+| `frequencyPenalty` | float | Frequency penalty override |
+| `presencePenalty` | float | Presence penalty override |
+| `stopSequences` | list | Stop sequences override |
+| `thinkingLevel` | string | Thinking level override |
+| `systemPrompt` | string | Per-model system prompt (used when no explicit prompt is set) |
+
+Settings from `modelSettings` and `customModels.params` act as model-level defaults — explicit CLI flags, `KIT_*` environment variables, global config values, and SDK `Options.*` fields all take precedence over them.
+
+When switching models via `/model` or `SetModel()`, if the new model has a per-model system prompt and no custom global prompt was set, the per-model prompt automatically replaces the previous one.
+
+### Precedence summary
+
+For the generation and provider parameters documented above, the resolved value at runtime comes from the first source that sets it:
+
+1. CLI flag (e.g. `--max-tokens`, `--temperature`, `--provider-api-key`)
+2. SDK `Options.X` when embedding Kit as a library (`kit.Options.MaxTokens`, `Temperature`, `ProviderAPIKey`, etc.)
+3. `KIT_*` environment variable (`KIT_MAX_TOKENS`, `KIT_TEMPERATURE`, ...)
+4. `.kit.yml` / `.kit.yaml` / `.kit.json` (project-local, then global)
+5. Per-model defaults (`modelSettings[provider/model]` / `customModels[...].params`)
+6. Provider-level defaults (e.g. Anthropic's own temperature default)
+7. SDK last-resort floor — currently an 8192 output-token ceiling matching the CLI `--max-tokens` default, auto-raised per-model up to 32768 when the model's catalog ceiling is higher
+
+See the [SDK options reference](/sdk/options) for the full list of `kit.Options` fields that map to these keys.
+
 ## Theme configuration
 
 ```yaml

www/pages/development.md

@@ -37,7 +37,7 @@ internal/acpserver/  - ACP (Agent Client Protocol) server
 internal/clipboard/  - Cross-platform clipboard operations
 internal/compaction/ - Conversation compaction and summarization
 internal/config/     - Configuration management
-internal/core/       - Built-in tools (bash, read, write, edit, grep, find, ls)
+internal/core/       - Built-in tools (bash with sudo password prompt, read, write, edit, grep, find, ls)
 internal/extensions/ - Yaegi extension system
 internal/kitsetup/   - Initial setup wizard
 internal/message/    - Message content types and structured content blocks

www/pages/extensions/examples.md

@@ -57,8 +57,9 @@ These examples demonstrate the new bridged SDK APIs that give extensions access
 
 | Extension | Description |
 |-----------|-------------|
-| [`conversation-manager.go`](https://github.com/mark3labs/kit/blob/master/examples/extensions/conversation-manager.go) | **NEW** Tree navigation (`GetTreeNode`, `GetCurrentBranch`, `NavigateTo`), branch summarization (`SummarizeBranch`), and fresh context loops (`CollapseBranch`) |
-| [`prompt-templates.go`](https://github.com/mark3labs/kit/blob/master/examples/extensions/prompt-templates.go) | **NEW** Frontmatter-driven templates with model fallback chains (`ResolveModelChain`), skill injection (`InjectSkillAsContext`), and template parsing (`ParseTemplate`, `RenderTemplate`) |
+| [`bridge-demo.go`](https://github.com/mark3labs/kit/blob/master/examples/extensions/bridge_demo.go) | Comprehensive demo of all bridged APIs — tree navigation, skill loading, template parsing, and model resolution |
+| [`conversation-manager.go`](https://github.com/mark3labs/kit/blob/master/examples/extensions/conversation-manager.go) | Tree navigation (`GetTreeNode`, `GetCurrentBranch`, `NavigateTo`), branch summarization (`SummarizeBranch`), and fresh context loops (`CollapseBranch`) |
+| [`prompt-templates.go`](https://github.com/mark3labs/kit/blob/master/examples/extensions/prompt-templates.go) | Frontmatter-driven templates with model fallback chains (`ResolveModelChain`), skill injection (`InjectSkillAsContext`), and template parsing (`ParseTemplate`, `RenderTemplate`) |
 
 ## Themes
 

www/pages/index.md

@@ -13,8 +13,9 @@ A powerful, extensible AI coding agent CLI with multi-provider support, built-in
 ## Features
 
 - **Multi-Provider LLM Support** — Anthropic, OpenAI, Google Gemini, Ollama, Azure OpenAI, AWS Bedrock, OpenRouter, and more
-- **Built-in Core Tools** — bash, read, write, edit, grep, find, ls, subagent with no MCP overhead
-- **MCP Integration** — Connect external MCP servers for expanded capabilities
+- **Built-in Core Tools** — bash (with interactive sudo password prompt), read, write, edit, grep, find, ls, subagent with no MCP overhead
+- **Smart @ Attachments** — Binary files auto-detected via MIME type, MCP resources via `@mcp:server:uri`
+- **MCP Integration** — Connect external MCP servers for expanded capabilities (tools, prompts, and resources)
 - **Extension System** — Write custom tools, commands, widgets, and UI modifications in Go
 - **Interactive TUI** — Rich terminal interface powered by Bubble Tea with streaming, syntax highlighting, and custom rendering
 - **Session Management** — Tree-based conversation history with branching support

www/pages/quick-start.md

@@ -25,6 +25,12 @@ Attach files as context using the `@` prefix:
 kit @main.go @test.go "Review these files"
 ```
 
+Binary files (images, audio, PDFs) are automatically detected via MIME type and sent as multimodal attachments. You can also reference MCP resources:
+
+```bash
+kit @mcp:myserver:file:///data/report.csv "Summarize this data"
+```
+
 Use a specific model:
 
 ```bash