diff --git a/pkg/tools/base.go b/pkg/tools/base.go
index 57209a1a6..468de5927 100644
--- a/pkg/tools/base.go
+++ b/pkg/tools/base.go
@@ -167,6 +167,14 @@ type AsyncTool interface {
 	SetCallback(cb AsyncCallback)
 }
 
+// ExampleProvider is an optional interface for tools that want to include
+// input examples in their schema definition. This follows Anthropic's Tool Use
+// Examples pattern — concrete usage samples that teach the LLM when to include
+// optional parameters, which combinations make sense, and API conventions.
+type ExampleProvider interface {
+	InputExamples() []map[string]interface{}
+}
+
 // ResourceProvider is an optional interface that tools can implement to declare
 // resources they need loaded before execution (schemas, examples, docs, configs).
 //
@@ -189,12 +197,18 @@ type ResourceProvider interface {
 }
 
 func ToolToSchema(tool Tool) map[string]interface{} {
+	fn := map[string]interface{}{
+		"name":        tool.Name(),
+		"description": tool.Description(),
+		"parameters":  tool.Parameters(),
+	}
+	if ep, ok := tool.(ExampleProvider); ok {
+		if examples := ep.InputExamples(); len(examples) > 0 {
+			fn["input_examples"] = examples
+		}
+	}
 	return map[string]interface{}{
-		"type": "function",
-		"function": map[string]interface{}{
-			"name":        tool.Name(),
-			"description": tool.Description(),
-			"parameters":  tool.Parameters(),
-		},
+		"type":     "function",
+		"function": fn,
 	}
 }
diff --git a/pkg/tools/registry.go b/pkg/tools/registry.go
index fed8186fa..d78f5cc0a 100644
--- a/pkg/tools/registry.go
+++ b/pkg/tools/registry.go
@@ -10,10 +10,10 @@ import (
 )
 
 type ToolRegistry struct {
-	tools                 map[string]Tool
-	mu                    sync.RWMutex
-	progressiveDisclosure bool
-	// gatewayTools are always visible even in progressive mode
+	tools map[string]Tool
+	mu    sync.RWMutex
+	// gatewayTools are always visible to the LLM; all other tools are
+	// discovered via tool_search + tool_call (progressive disclosure).
 	gatewayTools map[string]bool
 }
 
@@ -24,14 +24,9 @@ func NewToolRegistry() *ToolRegistry {
 	}
 }
 
-// SetProgressiveDisclosure enables or disables progressive disclosure mode.
-// When enabled, GetVisibleDefinitions returns only gateway tools (tool_search,
-// tool_call, and any explicitly marked tools). The agent discovers others via tool_search.
-func (r *ToolRegistry) SetProgressiveDisclosure(enabled bool) {
-	r.mu.Lock()
-	defer r.mu.Unlock()
-	r.progressiveDisclosure = enabled
-}
+// SetProgressiveDisclosure is a no-op retained for backward compatibility.
+// Progressive disclosure is always enabled.
+func (r *ToolRegistry) SetProgressiveDisclosure(_ bool) {}
 
 // MarkGateway marks a tool name as always visible in progressive disclosure mode.
 func (r *ToolRegistry) MarkGateway(name string) {
@@ -52,16 +47,11 @@ func (r *ToolRegistry) RegisterMetaTools() {
 }
 
 // GetVisibleDefinitions returns tool definitions visible to the LLM.
-// In progressive disclosure mode, only gateway tools are returned.
-// In full mode, all tools are returned (same as GetDefinitions).
+// Only gateway tools are returned; the agent discovers others via tool_search.
 func (r *ToolRegistry) GetVisibleDefinitions() []map[string]interface{} {
 	r.mu.RLock()
 	defer r.mu.RUnlock()
 
-	if !r.progressiveDisclosure {
-		return r.getDefinitionsLocked()
-	}
-
 	definitions := make([]map[string]interface{}, 0)
 	for _, tool := range r.tools {
 		if r.gatewayTools[tool.Name()] {
@@ -71,14 +61,6 @@ func (r *ToolRegistry) GetVisibleDefinitions() []map[string]interface{} {
 	return definitions
 }
 
-func (r *ToolRegistry) getDefinitionsLocked() []map[string]interface{} {
-	definitions := make([]map[string]interface{}, 0, len(r.tools))
-	for _, tool := range r.tools {
-		definitions = append(definitions, ToolToSchema(tool))
-	}
-	return definitions
-}
-
 func (r *ToolRegistry) Register(tool Tool) {
 	r.mu.Lock()
 	defer r.mu.Unlock()
@@ -182,21 +164,11 @@ func (r *ToolRegistry) List() []string {
 	return names
 }
 
-// ListVisible returns tool names visible to the LLM.
-// In progressive disclosure mode, only gateway tools are returned.
-// In full mode, all tools are returned.
+// ListVisible returns tool names visible to the LLM (gateway tools only).
 func (r *ToolRegistry) ListVisible() []string {
 	r.mu.RLock()
 	defer r.mu.RUnlock()
 
-	if !r.progressiveDisclosure {
-		names := make([]string, 0, len(r.tools))
-		for name := range r.tools {
-			names = append(names, name)
-		}
-		return names
-	}
-
 	names := make([]string, 0, len(r.gatewayTools))
 	for name := range r.gatewayTools {
 		if _, ok := r.tools[name]; ok {
diff --git a/pkg/tools/registry_progressive_test.go b/pkg/tools/registry_progressive_test.go
index bbf3c0145..5ad28b82e 100644
--- a/pkg/tools/registry_progressive_test.go
+++ b/pkg/tools/registry_progressive_test.go
@@ -6,31 +6,16 @@ import (
 	"testing"
 )
 
-func TestProgressiveDisclosure_Disabled_AllToolsVisible(t *testing.T) {
-	r := NewToolRegistry()
-	r.Register(&stubTool{name: "read_file", desc: "Read"})
-	r.Register(&stubTool{name: "write_file", desc: "Write"})
-	r.RegisterMetaTools()
-
-	visible := r.ListVisible()
-	// Should include all 4: read_file, write_file, tool_search, tool_call
-	if len(visible) != 4 {
-		t.Errorf("expected 4 visible tools, got %d: %v", len(visible), visible)
-	}
-}
-
-func TestProgressiveDisclosure_Enabled_OnlyGateway(t *testing.T) {
+func TestProgressiveDisclosure_OnlyGatewayVisible(t *testing.T) {
 	r := NewToolRegistry()
 	r.Register(&stubTool{name: "read_file", desc: "Read"})
 	r.Register(&stubTool{name: "write_file", desc: "Write"})
 	r.Register(&stubTool{name: "web_search", desc: "Search"})
 	r.RegisterMetaTools()
-	r.SetProgressiveDisclosure(true)
 
 	visible := r.ListVisible()
 	sort.Strings(visible)
 
-	// Only gateway tools
 	expected := []string{"tool_call", "tool_search"}
 	if len(visible) != len(expected) {
 		t.Fatalf("expected %v, got %v", expected, visible)
@@ -48,7 +33,6 @@ func TestProgressiveDisclosure_MarkGateway(t *testing.T) {
 	r.Register(&stubTool{name: "memory", desc: "Memory tool"})
 	r.RegisterMetaTools()
 	r.MarkGateway("memory")
-	r.SetProgressiveDisclosure(true)
 
 	visible := r.ListVisible()
 	sort.Strings(visible)
@@ -70,17 +54,9 @@ func TestProgressiveDisclosure_GetVisibleDefinitions(t *testing.T) {
 	r.Register(&stubTool{name: "write_file", desc: "Write"})
 	r.RegisterMetaTools()
 
-	// Full mode
-	allDefs := r.GetVisibleDefinitions()
-	if len(allDefs) != 4 {
-		t.Errorf("full mode: expected 4 definitions, got %d", len(allDefs))
-	}
-
-	// Progressive mode
-	r.SetProgressiveDisclosure(true)
 	gatewayDefs := r.GetVisibleDefinitions()
 	if len(gatewayDefs) != 2 {
-		t.Errorf("progressive mode: expected 2 definitions, got %d", len(gatewayDefs))
+		t.Errorf("expected 2 gateway definitions, got %d", len(gatewayDefs))
 	}
 }
 
@@ -88,9 +64,7 @@ func TestProgressiveDisclosure_AllToolsStillDispatchable(t *testing.T) {
 	r := NewToolRegistry()
 	r.Register(&stubTool{name: "read_file", desc: "Read"})
 	r.RegisterMetaTools()
-	r.SetProgressiveDisclosure(true)
 
-	// read_file is hidden from LLM but still in registry
 	tool, ok := r.Get("read_file")
 	if !ok {
 		t.Fatal("read_file should still exist in registry")
@@ -99,7 +73,6 @@ func TestProgressiveDisclosure_AllToolsStillDispatchable(t *testing.T) {
 		t.Errorf("expected read_file, got %s", tool.Name())
 	}
 
-	// tool_call should still dispatch to it
 	tc, _ := r.Get("tool_call")
 	result := tc.Execute(context.TODO(), map[string]interface{}{
 		"tool_name": "read_file",
@@ -115,9 +88,7 @@ func TestProgressiveDisclosure_SearchFindsHiddenTools(t *testing.T) {
 	r.Register(&stubTool{name: "read_file", desc: "Read a file from filesystem"})
 	r.Register(&stubTool{name: "write_file", desc: "Write to a file"})
 	r.RegisterMetaTools()
-	r.SetProgressiveDisclosure(true)
 
-	// Even though read_file is hidden from Fantasy, tool_search should find it
 	ts, _ := r.Get("tool_search")
 	result := ts.Execute(context.TODO(), map[string]interface{}{"query": "read"})
 
@@ -125,40 +96,15 @@ func TestProgressiveDisclosure_SearchFindsHiddenTools(t *testing.T) {
 		t.Fatalf("unexpected error: %s", result.ForLLM)
 	}
 
-	// Result should contain read_file
 	if result.ForLLM == "" {
 		t.Fatal("expected non-empty result")
 	}
 }
 
-func TestProgressiveDisclosure_ToggleRuntime(t *testing.T) {
-	r := NewToolRegistry()
-	r.Register(&stubTool{name: "alpha", desc: "A tool"})
-	r.RegisterMetaTools()
-
-	// Start in full mode
-	if len(r.ListVisible()) != 3 {
-		t.Fatal("expected 3 visible in full mode")
-	}
-
-	// Switch to progressive
-	r.SetProgressiveDisclosure(true)
-	if len(r.ListVisible()) != 2 {
-		t.Errorf("expected 2 visible in progressive mode, got %d", len(r.ListVisible()))
-	}
-
-	// Switch back
-	r.SetProgressiveDisclosure(false)
-	if len(r.ListVisible()) != 3 {
-		t.Errorf("expected 3 visible in full mode again, got %d", len(r.ListVisible()))
-	}
-}
-
 func TestProgressiveDisclosure_MarkNonexistentGateway(t *testing.T) {
 	r := NewToolRegistry()
 	r.RegisterMetaTools()
 	r.MarkGateway("nonexistent")
-	r.SetProgressiveDisclosure(true)
 
 	visible := r.ListVisible()
 	for _, name := range visible {
diff --git a/pkg/tools/search.go b/pkg/tools/search.go
index 8bb50ef57..ff83f2d6f 100644
--- a/pkg/tools/search.go
+++ b/pkg/tools/search.go
@@ -7,12 +7,15 @@ import (
 	"strings"
 
 	jsonv2 "github.com/go-json-experiment/json"
+	"github.com/sipeed/picoclaw/pkg/skills"
 )
 
-// ToolSearchTool implements tool discovery via fuzzy search over the registry.
-// The agent can query for tools by keyword and get back ranked summaries.
+// ToolSearchTool implements unified discovery via fuzzy search over the registry
+// and (optionally) the skills library. Returns ranked results for both tools
+// and skills so the agent has a single entry point for capability discovery.
 type ToolSearchTool struct {
-	registry *ToolRegistry
+	registry     *ToolRegistry
+	skillsLoader *skills.SkillsLoader
 }
 
 // NewToolSearchTool creates a tool that searches the registry.
@@ -20,10 +23,15 @@ func NewToolSearchTool(registry *ToolRegistry) *ToolSearchTool {
 	return &ToolSearchTool{registry: registry}
 }
 
+// SetSkillsLoader enables unified search across tools and skills.
+func (t *ToolSearchTool) SetSkillsLoader(sl *skills.SkillsLoader) {
+	t.skillsLoader = sl
+}
+
 func (t *ToolSearchTool) Name() string { return "tool_search" }
 
 func (t *ToolSearchTool) Description() string {
-	return "Search for available tools by keyword. Returns tool names, descriptions, and parameter summaries. Use this to discover what tools are available before calling them with tool_call."
+	return "Search for available tools and skills by keyword. Returns names, descriptions, and kind (tool or skill). Use this to discover capabilities before invoking them with tool_call (tools) or skill_read (skills)."
 }
 
 func (t *ToolSearchTool) Parameters() map[string]interface{} {
@@ -40,9 +48,12 @@ func (t *ToolSearchTool) Parameters() map[string]interface{} {
 }
 
 type toolSearchResult struct {
-	Name        string `json:"name"`
-	Description string `json:"description"`
-	Score       int    `json:"score"`
+	Name        string   `json:"name"`
+	Description string   `json:"description"`
+	Kind        string   `json:"kind"`
+	Score       int      `json:"score,omitempty"`
+	Tags        []string `json:"tags,omitempty"`
+	Domain      string   `json:"domain,omitempty"`
 }
 
 func (t *ToolSearchTool) Execute(_ context.Context, args map[string]interface{}) *ToolResult {
@@ -54,39 +65,54 @@ func (t *ToolSearchTool) Execute(_ context.Context, args map[string]interface{})
 	queryLower := strings.ToLower(query)
 	queryTerms := strings.Fields(queryLower)
 
-	t.registry.mu.RLock()
-	defer t.registry.mu.RUnlock()
-
 	var results []toolSearchResult
 
+	// Search tools
+	t.registry.mu.RLock()
 	for _, tool := range t.registry.tools {
-		// Skip meta-tools from results
 		if tool.Name() == "tool_search" || tool.Name() == "tool_call" {
 			continue
 		}
-
 		score := fuzzyScore(tool.Name(), tool.Description(), queryTerms)
 		if score > 0 {
 			results = append(results, toolSearchResult{
 				Name:        tool.Name(),
 				Description: tool.Description(),
+				Kind:        "tool",
 				Score:       score,
 			})
 		}
 	}
+	t.registry.mu.RUnlock()
+
+	// Search skills (unified discovery)
+	if t.skillsLoader != nil {
+		for _, si := range t.skillsLoader.ListSkills() {
+			combined := si.Name + " " + si.Description + " " + si.Domain + " " + strings.Join(si.Tags, " ")
+			score := fuzzyScore(si.Name, combined, queryTerms)
+			if score > 0 {
+				results = append(results, toolSearchResult{
+					Name:        si.Name,
+					Description: si.Description,
+					Kind:        "skill",
+					Score:       score,
+					Tags:        si.Tags,
+					Domain:      si.Domain,
+				})
+			}
+		}
+	}
 
-	// Sort by score descending
 	sort.Slice(results, func(i, j int) bool {
 		return results[i].Score > results[j].Score
 	})
 
-	// Limit to top 10
-	if len(results) > 10 {
-		results = results[:10]
+	if len(results) > 15 {
+		results = results[:15]
 	}
 
 	if len(results) == 0 {
-		return &ToolResult{ForLLM: fmt.Sprintf("No tools match query: %q. Try a broader search or use tool_search with no query to list all.", query)}
+		return &ToolResult{ForLLM: fmt.Sprintf("No tools or skills match query: %q. Try a broader search or use tool_search with no query to list all.", query)}
 	}
 
 	b, _ := jsonv2.Marshal(results)
@@ -94,10 +120,9 @@ func (t *ToolSearchTool) Execute(_ context.Context, args map[string]interface{})
 }
 
 func (t *ToolSearchTool) listAll() *ToolResult {
-	t.registry.mu.RLock()
-	defer t.registry.mu.RUnlock()
-
 	var results []toolSearchResult
+
+	t.registry.mu.RLock()
 	for _, tool := range t.registry.tools {
 		if tool.Name() == "tool_search" || tool.Name() == "tool_call" {
 			continue
@@ -105,8 +130,22 @@ func (t *ToolSearchTool) listAll() *ToolResult {
 		results = append(results, toolSearchResult{
 			Name:        tool.Name(),
 			Description: tool.Description(),
+			Kind:        "tool",
 		})
 	}
+	t.registry.mu.RUnlock()
+
+	if t.skillsLoader != nil {
+		for _, si := range t.skillsLoader.ListSkills() {
+			results = append(results, toolSearchResult{
+				Name:        si.Name,
+				Description: si.Description,
+				Kind:        "skill",
+				Tags:        si.Tags,
+				Domain:      si.Domain,
+			})
+		}
+	}
 
 	sort.Slice(results, func(i, j int) bool {
 		return results[i].Name < results[j].Name
diff --git a/pkg/tools/search_test.go b/pkg/tools/search_test.go
index df8549a71..e776699b4 100644
--- a/pkg/tools/search_test.go
+++ b/pkg/tools/search_test.go
@@ -2,9 +2,11 @@ package tools
 
 import (
 	"context"
+	"os"
 	"testing"
 
 	jsonv2 "github.com/go-json-experiment/json"
+	"github.com/sipeed/picoclaw/pkg/skills"
 )
 
 func TestToolSearchTool_Name(t *testing.T) {
@@ -199,6 +201,106 @@ func TestToolSearchTool_ExcludesMetaTools(t *testing.T) {
 	}
 }
 
+func TestToolSearchTool_UnifiedSearch_IncludesSkills(t *testing.T) {
+	r := NewToolRegistry()
+	r.Register(&stubTool{name: "read_file", desc: "Read a file"})
+	r.Register(&stubTool{name: "web_search", desc: "Search the web"})
+
+	tmpDir := t.TempDir()
+	sl := createTestSkillsDir(t, tmpDir, map[string]string{
+		"git-commit": "---\nname: git-commit\ndescription: Git commit conventions\ntags: [git, workflow]\n---\n# Git Commit Skill",
+		"trading":    "---\nname: trading\ndescription: Algorithmic trading strategies\ntags: [finance]\ndomain: quantitative\n---\n# Trading Skill",
+	})
+
+	s := NewToolSearchTool(r)
+	s.SetSkillsLoader(sl)
+
+	// Search for "git" — should find the skill but not the tools
+	result := s.Execute(context.Background(), map[string]interface{}{"query": "git"})
+
+	var results []toolSearchResult
+	jsonv2.Unmarshal([]byte(result.ForLLM), &results)
+
+	foundSkill := false
+	for _, res := range results {
+		if res.Name == "git-commit" && res.Kind == "skill" {
+			foundSkill = true
+		}
+	}
+	if !foundSkill {
+		t.Errorf("expected git-commit skill in results, got: %v", results)
+	}
+}
+
+func TestToolSearchTool_UnifiedSearch_MixesToolsAndSkills(t *testing.T) {
+	r := NewToolRegistry()
+	r.Register(&stubTool{name: "web_search", desc: "Search the web for information"})
+
+	tmpDir := t.TempDir()
+	sl := createTestSkillsDir(t, tmpDir, map[string]string{
+		"web-scraper": "---\nname: web-scraper\ndescription: Web scraping techniques\ntags: [web]\n---\n# Web Scraper",
+	})
+
+	s := NewToolSearchTool(r)
+	s.SetSkillsLoader(sl)
+
+	result := s.Execute(context.Background(), map[string]interface{}{"query": "web"})
+
+	var results []toolSearchResult
+	jsonv2.Unmarshal([]byte(result.ForLLM), &results)
+
+	hasToolKind := false
+	hasSkillKind := false
+	for _, res := range results {
+		if res.Kind == "tool" {
+			hasToolKind = true
+		}
+		if res.Kind == "skill" {
+			hasSkillKind = true
+		}
+	}
+	if !hasToolKind || !hasSkillKind {
+		t.Errorf("expected both tool and skill results, got: %v", results)
+	}
+}
+
+func TestToolSearchTool_ListAll_IncludesSkills(t *testing.T) {
+	r := NewToolRegistry()
+	r.Register(&stubTool{name: "alpha", desc: "First tool"})
+
+	tmpDir := t.TempDir()
+	sl := createTestSkillsDir(t, tmpDir, map[string]string{
+		"beta-skill": "---\nname: beta-skill\ndescription: A skill\n---\n# Skill",
+	})
+
+	s := NewToolSearchTool(r)
+	s.SetSkillsLoader(sl)
+
+	result := s.Execute(context.Background(), map[string]interface{}{})
+
+	var results []toolSearchResult
+	jsonv2.Unmarshal([]byte(result.ForLLM), &results)
+
+	if len(results) != 2 {
+		t.Errorf("expected 2 results (1 tool + 1 skill), got %d: %v", len(results), results)
+	}
+}
+
+// createTestSkillsDir sets up a temp skills directory with SKILL.md files
+func createTestSkillsDir(t *testing.T, baseDir string, skillContents map[string]string) *skills.SkillsLoader {
+	t.Helper()
+	for name, content := range skillContents {
+		skillDir := baseDir + "/" + name
+		if err := os.MkdirAll(skillDir, 0755); err != nil {
+			t.Fatal(err)
+		}
+		if err := os.WriteFile(skillDir+"/SKILL.md", []byte(content), 0644); err != nil {
+			t.Fatal(err)
+		}
+	}
+	return skills.NewSkillsLoader(baseDir, "", "")
+}
+
 // --- fuzzyScore tests ---
 
 func TestFuzzyScore_ExactMatch(t *testing.T) {
@@ -265,6 +367,36 @@ func TestSubsequenceMatch_False(t *testing.T) {
 	}
 }
 
+func TestToolToSchema_WithExamples(t *testing.T) {
+	tool := &stubToolWithExamples{
+		stubTool: stubTool{name: "create_ticket", desc: "Create a support ticket"},
+		examples: []map[string]interface{}{
+			{"title": "Login page 500 error", "priority": "critical"},
+			{"title": "Add dark mode"},
+		},
+	}
+
+	schema := ToolToSchema(tool)
+	fn := schema["function"].(map[string]interface{})
+
+	examples, ok := fn["input_examples"].([]map[string]interface{})
+	if !ok || len(examples) != 2 {
+		t.Fatalf("expected 2 input_examples, got: %v", fn["input_examples"])
+	}
+	if examples[0]["priority"] != "critical" {
+		t.Errorf("expected critical priority in first example, got: %v", examples[0])
+	}
+}
+
+func TestToolToSchema_WithoutExamples(t *testing.T) {
+	tool := &stubTool{name: "read_file", desc: "Read a file"}
+	schema := ToolToSchema(tool)
+	fn := schema["function"].(map[string]interface{})
+	if _, exists := fn["input_examples"]; exists {
+		t.Error("expected no input_examples for tool without ExampleProvider")
+	}
+}
+
 // --- stubTool for testing ---
 type stubTool struct {
 	name string
@@ -277,3 +409,12 @@ func (s *stubTool) Parameters() map[string]interface{} { return map[string]inter
 func (s *stubTool) Execute(_ context.Context, args map[string]interface{}) *ToolResult {
 	return &ToolResult{ForLLM: "executed " + s.name}
 }
+
+type stubToolWithExamples struct {
+	stubTool
+	examples []map[string]interface{}
+}
+
+func (s *stubToolWithExamples) InputExamples() []map[string]interface{} {
+	return s.examples
+}
diff --git a/pkg/tools/shell.go b/pkg/tools/shell.go
index 580690552..683ee52bc 100644
--- a/pkg/tools/shell.go
+++ b/pkg/tools/shell.go
@@ -440,10 +440,15 @@ func (t *ExecTool) SetTimeout(timeout time.Duration) {
 	t.timeout = timeout
 }
 
+// SetRestrictToWorkspace is the legacy name. Use SetRestrictToSandbox for new code.
 func (t *ExecTool) SetRestrictToWorkspace(restrict bool) {
 	t.restrictToWorkspace = restrict
 }
 
+func (t *ExecTool) SetRestrictToSandbox(restrict bool) {
+	t.restrictToWorkspace = restrict
+}
+
 func (t *ExecTool) SetMode(mode ShellMode) {
 	t.mode = mode
 }
diff --git a/pkg/tools/subagent.go b/pkg/tools/subagent.go
index 0040d06d6..ddedd5f47 100644
--- a/pkg/tools/subagent.go
+++ b/pkg/tools/subagent.go
@@ -21,6 +21,10 @@ type SubagentTask struct {
 	Created       int64
 }
 
+// RunLoopFunc executes an agent tool loop. Injected from pkg/agent to break
+// the import cycle between pkg/tools and pkg/fantasy.
+type RunLoopFunc func(ctx context.Context, config ToolLoopConfig, systemPrompt, userPrompt, channel, chatID string) (*ToolLoopResult, error)
+
 type SubagentManager struct {
 	tasks         map[string]*SubagentTask
 	mu            sync.RWMutex
@@ -31,6 +35,7 @@ type SubagentManager struct {
 	tools         *ToolRegistry
 	maxIterations int
 	nextID        int
+	runLoop       RunLoopFunc
 }
 
 func NewSubagentManager(model fantasy.LanguageModel, defaultModel, workspace string, bus *bus.MessageBus) *SubagentManager {
@@ -46,6 +51,23 @@ func NewSubagentManager(model fantasy.LanguageModel, defaultModel, workspace str
 	}
 }
 
+// SetRunLoop injects the loop runner function. Must be called before any
+// subagent execution. When nil, falls back to the local RunToolLoop.
+func (sm *SubagentManager) SetRunLoop(fn RunLoopFunc) {
+	sm.mu.Lock()
+	defer sm.mu.Unlock()
+	sm.runLoop = fn
+}
+
+func (sm *SubagentManager) getRunLoop() RunLoopFunc {
+	sm.mu.RLock()
+	defer sm.mu.RUnlock()
+	if sm.runLoop != nil {
+		return sm.runLoop
+	}
+	return RunToolLoop
+}
+
 // SetTools sets the tool registry for subagent execution.
 func (sm *SubagentManager) SetTools(tools *ToolRegistry) {
 	sm.mu.Lock()
@@ -112,7 +134,8 @@ After completing the task, provide a clear summary of what was done.`
 	maxIter := sm.maxIterations
 	sm.mu.RUnlock()
 
-	loopResult, err := RunToolLoop(ctx, ToolLoopConfig{
+	runLoop := sm.getRunLoop()
+	loopResult, err := runLoop(ctx, ToolLoopConfig{
 		Model:         sm.model,
 		ModelID:       sm.defaultModel,
 		Tools:         tools,
@@ -251,7 +274,8 @@ func (t *SubagentTool) Execute(ctx context.Context, args map[string]interface{})
 	maxIter := sm.maxIterations
 	sm.mu.RUnlock()
 
-	loopResult, err := RunToolLoop(ctx, ToolLoopConfig{
+	runLoop := sm.getRunLoop()
+	loopResult, err := runLoop(ctx, ToolLoopConfig{
 		Model:         sm.model,
 		ModelID:       sm.defaultModel,
 		Tools:         tools,
diff --git a/pkg/tools/subagent_tool_test.go b/pkg/tools/subagent_tool_test.go
index fd8f7fd2d..fc3b8396d 100644
--- a/pkg/tools/subagent_tool_test.go
+++ b/pkg/tools/subagent_tool_test.go
@@ -151,6 +151,12 @@ func TestSubagentTool_Execute_Success(t *testing.T) {
 	provider := &MockLanguageModel{}
 	msgBus := bus.NewMessageBus()
 	manager := NewSubagentManager(provider, "test-model", "/tmp/test", msgBus)
+	manager.SetRunLoop(func(_ context.Context, _ ToolLoopConfig, _, userPrompt, _, _ string) (*ToolLoopResult, error) {
+		return &ToolLoopResult{
+			Content:    "Task completed: " + userPrompt,
+			Iterations: 1,
+		}, nil
+	})
 	tool := NewSubagentTool(manager)
 	tool.SetContext("telegram", "chat-123")
 
@@ -207,6 +213,9 @@ func TestSubagentTool_Execute_NoLabel(t *testing.T) {
 	provider := &MockLanguageModel{}
 	msgBus := bus.NewMessageBus()
 	manager := NewSubagentManager(provider, "test-model", "/tmp/test", msgBus)
+	manager.SetRunLoop(func(_ context.Context, _ ToolLoopConfig, _, userPrompt, _, _ string) (*ToolLoopResult, error) {
+		return &ToolLoopResult{Content: "Task completed: " + userPrompt, Iterations: 1}, nil
+	})
 	tool := NewSubagentTool(manager)
 
 	ctx := context.Background()
@@ -281,6 +290,9 @@ func TestSubagentTool_Execute_ContextPassing(t *testing.T) {
 	provider := &MockLanguageModel{}
 	msgBus := bus.NewMessageBus()
 	manager := NewSubagentManager(provider, "test-model", "/tmp/test", msgBus)
+	manager.SetRunLoop(func(_ context.Context, _ ToolLoopConfig, _, userPrompt, _, _ string) (*ToolLoopResult, error) {
+		return &ToolLoopResult{Content: "Task completed: " + userPrompt, Iterations: 1}, nil
+	})
 	tool := NewSubagentTool(manager)
 
 	// Set context
@@ -306,10 +318,12 @@ func TestSubagentTool_Execute_ContextPassing(t *testing.T) {
 
 // TestSubagentTool_ForUserTruncation verifies long content is truncated for user
 func TestSubagentTool_ForUserTruncation(t *testing.T) {
-	// Create a mock provider that returns very long content
 	provider := &MockLanguageModel{}
 	msgBus := bus.NewMessageBus()
 	manager := NewSubagentManager(provider, "test-model", "/tmp/test", msgBus)
+	manager.SetRunLoop(func(_ context.Context, _ ToolLoopConfig, _, userPrompt, _, _ string) (*ToolLoopResult, error) {
+		return &ToolLoopResult{Content: "Task completed: " + userPrompt, Iterations: 1}, nil
+	})
 	tool := NewSubagentTool(manager)
 
 	ctx := context.Background()
diff --git a/pkg/tools/toolloop.go b/pkg/tools/toolloop.go
index 86b528cbb..83104ff4f 100644
--- a/pkg/tools/toolloop.go
+++ b/pkg/tools/toolloop.go
@@ -1,5 +1,4 @@
 // PicoClaw - Ultra-lightweight personal AI agent
-// Inspired by and based on nanobot: https://github.com/HKUDS/nanobot
 // License: MIT
 //
 // Copyright (c) 2026 PicoClaw contributors
@@ -8,41 +7,11 @@ package tools
 
 import (
 	"context"
-	"fmt"
-
-	jsonv2 "github.com/go-json-experiment/json"
 
 	fantasy "charm.land/fantasy"
 	"github.com/sipeed/picoclaw/pkg/bus"
-	"github.com/sipeed/picoclaw/pkg/logger"
 )
 
-// ToolLoopMode controls whether the agent uses the sequential ReAct loop,
-// the parallel DAG executor, or lets the router decide automatically.
-type ToolLoopMode int
-
-const (
-	ModeReAct ToolLoopMode = iota
-	ModeDAG
-	ModeAuto
-)
-
-// DAGRunResult holds the output from a DAG execution.
-type DAGRunResult struct {
-	Answer     string
-	Tokens     uint32
-	Iterations int
-}
-
-// DAGRunFunc executes a query through the DAG planner/executor pipeline.
-// This function type breaks the import cycle between tools → dag → securebus → tools.
-// The concrete implementation is wired in the application entry point.
-type DAGRunFunc func(ctx context.Context, sessionKey, query string, availableTools []string) (*DAGRunResult, error)
-
-// RouteFunc classifies a query and returns the preferred execution mode.
-// When nil, all queries use ModeReAct.
-type RouteFunc func(mode ToolLoopMode, query string) ToolLoopMode
-
 // ToolLoopConfig configures the tool execution loop.
 type ToolLoopConfig struct {
 	Model         fantasy.LanguageModel
@@ -50,17 +19,6 @@ type ToolLoopConfig struct {
 	Tools         *ToolRegistry
 	Bus           *bus.MessageBus
 	MaxIterations int
-
-	// DAGRunner executes queries through the DAG planner/executor pipeline.
-	// When nil, all queries use the sequential ReAct loop.
-	DAGRunner DAGRunFunc
-
-	// Router classifies queries into ModeReAct or ModeDAG. When nil,
-	// ModeReAct is always used.
-	Router RouteFunc
-
-	// LoopMode controls execution routing. Default: ModeAuto.
-	LoopMode ToolLoopMode
 }
 
 // ToolLoopResult contains the result of running the tool loop.
@@ -69,197 +27,9 @@ type ToolLoopResult struct {
 	Iterations int
 }
 
-// RunToolLoop executes the agent loop with PicoClaw tools. It supports two
-// execution modes:
-//   - ReAct (sequential): Fantasy's step-by-step tool calling loop
-//   - DAG (parallel): LLMCompiler-style DAG planning and execution
-//
-// When LoopMode is ModeAuto, the router classifies the query to pick the
-// optimal mode. The SecureBus enforces capabilities in both modes.
-func RunToolLoop(ctx context.Context, config ToolLoopConfig, systemPrompt, userPrompt, channel, chatID string) (*ToolLoopResult, error) {
-	mode := config.LoopMode
-	if config.Router != nil {
-		mode = config.Router(mode, userPrompt)
-	} else if mode == ModeAuto {
-		mode = ModeReAct
-	}
-
-	if mode == ModeDAG && config.DAGRunner != nil {
-		return runDAGLoop(ctx, config, userPrompt, channel)
-	}
-
-	return runReActLoop(ctx, config, systemPrompt, userPrompt, channel, chatID)
-}
-
-// runReActLoop is the original sequential Fantasy agent loop.
-func runReActLoop(ctx context.Context, config ToolLoopConfig, systemPrompt, userPrompt, channel, chatID string) (*ToolLoopResult, error) {
-	adaptedTools := BuildAdaptedToolsFromRegistry(config.Tools, config.Bus, channel, chatID)
-
-	agentOpts := []fantasy.AgentOption{
-		fantasy.WithTools(adaptedTools...),
-		fantasy.WithStopConditions(fantasy.StepCountIs(config.MaxIterations)),
-	}
-	if systemPrompt != "" {
-		agentOpts = append(agentOpts, fantasy.WithSystemPrompt(systemPrompt))
-	}
-	agent := fantasy.NewAgent(config.Model, agentOpts...)
-
-	logger.DebugCF("toolloop", "ReAct mode: Fantasy agent created",
-		map[string]any{
-			"tools_count":    len(adaptedTools),
-			"max_iterations": config.MaxIterations,
-		})
-
-	result, err := agent.Generate(ctx, fantasy.AgentCall{
-		Prompt: userPrompt,
-	})
-	if err != nil {
-		logger.ErrorCF("toolloop", "Fantasy agent.Generate failed",
-			map[string]any{"error": err.Error()})
-		return nil, fmt.Errorf("agent Generate failed: %w", err)
-	}
-
-	finalContent := result.Response.Content.Text()
-	stepCount := len(result.Steps)
-
-	logger.InfoCF("toolloop", "ReAct loop completed",
-		map[string]any{
-			"steps":         stepCount,
-			"content_chars": len(finalContent),
-		})
-
-	return &ToolLoopResult{
-		Content:    finalContent,
-		Iterations: stepCount,
-	}, nil
-}
-
-// runDAGLoop uses the LLMCompiler-style DAG executor with replanning.
-func runDAGLoop(ctx context.Context, config ToolLoopConfig, query, sessionKey string) (*ToolLoopResult, error) {
-	logger.InfoCF("toolloop", "DAG mode: planning and executing",
-		map[string]any{"query_len": len(query)})
-
-	availableTools := config.Tools.List()
-
-	result, err := config.DAGRunner(ctx, sessionKey, query, availableTools)
-	if err != nil {
-		logger.ErrorCF("toolloop", "DAG execution failed",
-			map[string]any{"error": err.Error()})
-		return nil, fmt.Errorf("DAG execution failed: %w", err)
-	}
-
-	logger.InfoCF("toolloop", "DAG loop completed",
-		map[string]any{
-			"iterations":   result.Iterations,
-			"total_tokens": result.Tokens,
-			"answer_chars": len(result.Answer),
-		})
-
-	return &ToolLoopResult{
-		Content:    result.Answer,
-		Iterations: result.Iterations,
-	}, nil
-}
-
-// BuildAdaptedToolsFromRegistry wraps all tools in a ToolRegistry as Fantasy AgentTools.
-// This is a local wrapper that avoids circular imports by duplicating the adapter logic.
-func BuildAdaptedToolsFromRegistry(registry *ToolRegistry, msgBus *bus.MessageBus, channel, chatID string) []fantasy.AgentTool {
-	if registry == nil {
-		return nil
-	}
-
-	names := registry.List()
-	adapted := make([]fantasy.AgentTool, 0, len(names))
-
-	for _, name := range names {
-		tool, ok := registry.Get(name)
-		if !ok {
-			continue
-		}
-		adapted = append(adapted, &picoToolAdapter{
-			inner:   tool,
-			bus:     msgBus,
-			channel: channel,
-			chatID:  chatID,
-		})
-	}
-
-	return adapted
-}
-
-// picoToolAdapter wraps a PicoClaw tool as a Fantasy AgentTool.
-// This is a local copy to avoid circular imports with pkg/fantasy.
-type picoToolAdapter struct {
-	inner   Tool
-	bus     *bus.MessageBus
-	channel string
-	chatID  string
-}
-
-func (a *picoToolAdapter) Info() fantasy.ToolInfo {
-	return fantasy.ToolInfo{
-		Name:        a.inner.Name(),
-		Description: a.inner.Description(),
-		Parameters:  a.inner.Parameters(),
-	}
-}
-
-func (a *picoToolAdapter) Run(ctx context.Context, call fantasy.ToolCall) (fantasy.ToolResponse, error) {
-	args, err := parseToolCallArgs(call.Input)
-	if err != nil {
-		return fantasy.NewTextErrorResponse(fmt.Sprintf("invalid arguments: %v", err)), nil
-	}
-
-	if ct, ok := a.inner.(ContextualTool); ok {
-		ct.SetContext(a.channel, a.chatID)
-	}
-
-	if at, ok := a.inner.(AsyncTool); ok {
-		at.SetCallback(func(_ context.Context, result *ToolResult) {
-			if result != nil && result.ForUser != "" && !result.Silent && a.bus != nil {
-				a.bus.PublishOutbound(bus.OutboundMessage{
-					Channel: a.channel,
-					ChatID:  a.chatID,
-					Content: result.ForUser,
-				})
-			}
-		})
-	}
-
-	result := a.inner.Execute(ctx, args)
-	if result == nil {
-		return fantasy.NewTextErrorResponse("tool returned nil result"), nil
-	}
-
-	if result.ForUser != "" && !result.Silent && a.bus != nil {
-		a.bus.PublishOutbound(bus.OutboundMessage{
-			Channel: a.channel,
-			ChatID:  a.chatID,
-			Content: result.ForUser,
-		})
-	}
-
-	if result.IsError {
-		return fantasy.NewTextErrorResponse(result.ForLLM), nil
-	}
-	return fantasy.NewTextResponse(result.ForLLM), nil
-}
-
-func (a *picoToolAdapter) ProviderOptions() fantasy.ProviderOptions {
-	return fantasy.ProviderOptions{}
-}
-
-func (a *picoToolAdapter) SetProviderOptions(_ fantasy.ProviderOptions) {}
-
-// parseToolCallArgs deserializes JSON input string into args map.
-func parseToolCallArgs(input string) (map[string]interface{}, error) {
-	if input == "" || input == "{}" {
-		return map[string]interface{}{}, nil
-	}
-
-	var args map[string]interface{}
-	if err := jsonv2.Unmarshal([]byte(input), &args); err != nil {
-		return nil, fmt.Errorf("failed to parse tool arguments: %w", err)
-	}
-	return args, nil
+// RunToolLoop is the package-level fallback used when no injected loop runner
+// is available. It panics because the concrete implementation lives in
+// pkg/agent and must be injected via SubagentManager.SetRunLoop.
+func RunToolLoop(_ context.Context, _ ToolLoopConfig, _, _, _, _ string) (*ToolLoopResult, error) {
+	panic("tools.RunToolLoop called without injected loop runner; wire agent.MakeRunLoopFunc via SubagentManager.SetRunLoop")
 }