diff --git a/pkg/agent/context_seahorse.go b/pkg/agent/context_seahorse.go
index 367730833..104a84a78 100644
--- a/pkg/agent/context_seahorse.go
+++ b/pkg/agent/context_seahorse.go
@@ -134,7 +134,8 @@ func (m *seahorseContextManager) Compact(ctx context.Context, req *CompactReques
 	}
 
 	_, err := m.engine.Compact(ctx, req.SessionKey, seahorse.CompactInput{
-		Force: req.Reason == ContextCompressReasonRetry,
+		Force:  req.Reason == ContextCompressReasonRetry,
+		Budget: &req.Budget,
 	})
 	return err
 }
diff --git a/pkg/agent/context_seahorse_test.go b/pkg/agent/context_seahorse_test.go
index cf387a60d..e405ef944 100644
--- a/pkg/agent/context_seahorse_test.go
+++ b/pkg/agent/context_seahorse_test.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"strings"
 	"testing"
+	"time"
 
 	"github.com/sipeed/picoclaw/pkg/bus"
 	"github.com/sipeed/picoclaw/pkg/config"
@@ -970,3 +971,116 @@ func TestSeahorseSteeringMessageIngested(t *testing.T) {
 		t.Error("STEERING MESSAGE NOT IN SEAHORSE DB: steering message should be ingested into SQLite")
 	}
 }
+
+// TestSeahorseSummarizeSkipsCondensedWhenBelowThreshold verifies that when
+// Summarize is triggered but tokens are below ContextWindow threshold,
+// condensed compaction should NOT run.
+func TestSeahorseSummarizeSkipsCondensedWhenBelowThreshold(t *testing.T) {
+	contextWindow := 1000
+	cfg := &config.Config{
+		Agents: config.AgentsConfig{
+			Defaults: config.AgentDefaults{
+				Workspace:         t.TempDir(),
+				ModelName:         "test-model",
+				MaxTokens:         4096,
+				MaxToolIterations: 10,
+				ContextManager:    "seahorse",
+				ContextWindow:     contextWindow,
+			},
+		},
+	}
+
+	msgBus := bus.NewMessageBus()
+	provider := &seahorseTestProvider{}
+	al := NewAgentLoop(cfg, msgBus, provider)
+	defaultAgent := al.registry.GetDefaultAgent()
+	if defaultAgent == nil {
+		t.Fatal("expected default agent")
+	}
+
+	ctx := context.Background()
+	sessionKey := "test-summarize-skip-condensed"
+
+	seahorseCM, ok := al.contextManager.(*seahorseContextManager)
+	if !ok {
+		t.Fatal("expected seahorseContextManager")
+	}
+	store := seahorseCM.engine.GetRetrieval().Store()
+
+	conv, err := store.GetOrCreateConversation(ctx, sessionKey)
+	if err != nil {
+		t.Fatalf("GetOrCreateConversation: %v", err)
+	}
+
+	// Insert leaf summaries directly (bypass leaf compaction requirement)
+	for i := 0; i < seahorse.CondensedMinFanout; i++ {
+		now := time.Now().UTC()
+		summary, sumErr := store.CreateSummary(ctx, seahorse.CreateSummaryInput{
+			ConversationID: conv.ConversationID,
+			Kind:           seahorse.SummaryKindLeaf,
+			Depth:          0,
+			Content:        fmt.Sprintf("leaf summary %d", i),
+			TokenCount:     50,
+			EarliestAt:     &now,
+			LatestAt:       &now,
+		})
+		if sumErr != nil {
+			t.Fatalf("CreateSummary %d: %v", i, sumErr)
+		}
+		if appendErr := store.AppendContextSummary(ctx, conv.ConversationID, summary.SummaryID); appendErr != nil {
+			t.Fatalf("AppendContextSummary %d: %v", i, appendErr)
+		}
+	}
+
+	// Add fresh messages (required for condensation candidates)
+	for i := 0; i < seahorse.FreshTailCount+1; i++ {
+		m, msgErr := store.AddMessage(ctx, conv.ConversationID, "user", "fresh", 5)
+		if msgErr != nil {
+			t.Fatalf("AddMessage %d: %v", i, msgErr)
+		}
+		if appendErr := store.AppendContextMessage(ctx, conv.ConversationID, m.ID); appendErr != nil {
+			t.Fatalf("AppendContextMessage %d: %v", i, appendErr)
+		}
+	}
+
+	tokensBefore, err := store.GetContextTokenCount(ctx, conv.ConversationID)
+	if err != nil {
+		t.Fatalf("GetContextTokenCount: %v", err)
+	}
+	threshold := int(float64(contextWindow) * seahorse.ContextThreshold)
+	t.Logf("Tokens before: %d, threshold: %d", tokensBefore, threshold)
+
+	// Trigger Summarize
+	_, err = al.runAgentLoop(ctx, defaultAgent, processOptions{
+		SessionKey:      sessionKey,
+		Channel:         "cli",
+		ChatID:          "direct",
+		UserMessage:     "trigger",
+		DefaultResponse: defaultResponse,
+		EnableSummary:   true,
+		SendResponse:    false,
+	})
+	if err != nil {
+		t.Fatalf("runAgentLoop: %v", err)
+	}
+
+	time.Sleep(500 * time.Millisecond)
+
+	summaries, err := store.GetSummariesByConversation(ctx, conv.ConversationID)
+	if err != nil {
+		t.Fatalf("GetSummariesByConversation: %v", err)
+	}
+
+	condensedCount := 0
+	for _, sum := range summaries {
+		if sum.Kind == seahorse.SummaryKindCondensed {
+			condensedCount++
+		}
+	}
+
+	t.Logf("Condensed summaries: %d", condensedCount)
+
+	if tokensBefore < threshold && condensedCount > 0 {
+		t.Errorf("BUG: condensed created when tokens (%d) < threshold (%d)", tokensBefore, threshold)
+	}
+}
diff --git a/pkg/agent/loop.go b/pkg/agent/loop.go
index 8e6eadfc9..fc37ff8a0 100644
--- a/pkg/agent/loop.go
+++ b/pkg/agent/loop.go
@@ -1742,6 +1742,7 @@ func (al *AgentLoop) runTurn(ctx context.Context, ts *turnState) (turnResult, er
 			if err := al.contextManager.Compact(turnCtx, &CompactRequest{
 				SessionKey: ts.sessionKey,
 				Reason:     ContextCompressReasonProactive,
+				Budget:     ts.agent.ContextWindow,
 			}); err != nil {
 				logger.WarnCF("agent", "Proactive compact failed", map[string]any{
 					"session_key": ts.sessionKey,
@@ -2775,7 +2776,7 @@ turnLoop:
 				}
 			}
 			if ts.opts.EnableSummary {
-				al.contextManager.Compact(turnCtx, &CompactRequest{SessionKey: ts.sessionKey, Reason: ContextCompressReasonSummarize})
+				al.contextManager.Compact(turnCtx, &CompactRequest{SessionKey: ts.sessionKey, Reason: ContextCompressReasonSummarize, Budget: ts.agent.ContextWindow})
 			}
 
 			ts.setPhase(TurnPhaseCompleted)
@@ -2851,6 +2852,7 @@ turnLoop:
 			&CompactRequest{
 				SessionKey: ts.sessionKey,
 				Reason:     ContextCompressReasonSummarize,
+				Budget:     ts.agent.ContextWindow,
 			},
 		)
 	}
diff --git a/pkg/seahorse/.omc/state/last-tool-error.json b/pkg/seahorse/.omc/state/last-tool-error.json
new file mode 100644
index 000000000..2e7273e23
--- /dev/null
+++ b/pkg/seahorse/.omc/state/last-tool-error.json
@@ -0,0 +1,7 @@
+{
+  "tool_name": "Bash",
+  "tool_input_preview": "{\"command\":\"cd /home/yliu/repos/picoclaw && make lint 2>&1\",\"timeout\":120000}",
+  "error": "Exit code 2\npkg/agent/context_seahorse_test.go:1027:1: File is not properly formatted (gci)\n\t\t\tEarliestAt:    &now,\n^\n1 issues:\n* gci: 1\nmake: *** [Makefile:264: lint] Error 1",
+  "timestamp": "2026-04-04T02:38:32.067Z",
+  "retry_count": 6
+}
\ No newline at end of file
diff --git a/pkg/seahorse/short_compaction.go b/pkg/seahorse/short_compaction.go
index 38676f02f..71f3032d2 100644
--- a/pkg/seahorse/short_compaction.go
+++ b/pkg/seahorse/short_compaction.go
@@ -64,6 +64,11 @@ func (e *CompactionEngine) Compact(ctx context.Context, convID int64, input Comp
 	var budget int
 	if input.Budget != nil {
 		budget = *input.Budget
+		if budget == 0 {
+			logger.ErrorCF("seahorse", "Compact: budget is 0, this should not happen", map[string]any{
+				"conv_id": convID,
+			})
+		}
 	} else {
 		budget = int(float64(tokensBefore) * ContextThreshold)
 	}
diff --git a/pkg/seahorse/store.go b/pkg/seahorse/store.go
index e50e25d8d..550eae548 100644
--- a/pkg/seahorse/store.go
+++ b/pkg/seahorse/store.go
@@ -854,17 +854,19 @@ func (s *Store) ReplaceContextItemsWithSummary(
 	if err != nil {
 		return err
 	}
+	defer rows.Close()
 
 	var ordinals []int
 	for rows.Next() {
 		var ord int
-		if err := rows.Scan(&ord); err != nil {
-			rows.Close()
-			return err
+		if scanErr := rows.Scan(&ord); scanErr != nil {
+			return scanErr
 		}
 		ordinals = append(ordinals, ord)
 	}
-	rows.Close()
+	if err = rows.Err(); err != nil {
+		return err
+	}
 
 	if len(ordinals) == 0 {
 		return nil
diff --git a/pkg/seahorse/store_test.go b/pkg/seahorse/store_test.go
index 3dca90a89..fd55379c6 100644
--- a/pkg/seahorse/store_test.go
+++ b/pkg/seahorse/store_test.go
@@ -1189,7 +1189,10 @@ func TestStoreReplaceContextItemsWithSummary(t *testing.T) {
 
 	// Replace summaries 0 and 1 (not 2) using per-item deletion
 	// This should NOT delete the message at ordinal 200
-	err := s.ReplaceContextItemsWithSummary(ctx, conv.ConversationID, []string{summaries[0], summaries[1]}, newSummary.SummaryID)
+	err := s.ReplaceContextItemsWithSummary(
+		ctx, conv.ConversationID,
+		[]string{summaries[0], summaries[1]},
+		newSummary.SummaryID)
 	if err != nil {
 		t.Fatalf("ReplaceContextItemsWithSummary: %v", err)
 	}