diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1bacac1e..47dfd7d6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,10 @@
 # Changelog
 
+## 0.7.0
+
+- Allow importing from this package as a library in addition to running it as a CLI. Allows for easier integration into existing node applications.
+- Update to @anthropic-ai/claude-agent-sdk@v0.1.27
+
 ## 0.6.10
 
 - Provide `agentInfo` on initialization response.
diff --git a/package-lock.json b/package-lock.json
index dedd30db..673ae32c 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,17 +1,17 @@
 {
   "name": "@zed-industries/claude-code-acp",
-  "version": "0.6.10",
+  "version": "0.7.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "@zed-industries/claude-code-acp",
-      "version": "0.6.10",
+      "version": "0.7.0",
       "license": "Apache-2.0",
       "dependencies": {
         "@agentclientprotocol/sdk": "0.5.1",
-        "@anthropic-ai/claude-agent-sdk": "0.1.26",
-        "@anthropic-ai/claude-code": "2.0.26",
+        "@anthropic-ai/claude-agent-sdk": "0.1.27",
+        "@anthropic-ai/claude-code": "2.0.27",
         "@modelcontextprotocol/sdk": "1.20.2",
         "diff": "8.0.2",
         "express": "5.1.0",
@@ -49,9 +49,9 @@
       }
     },
     "node_modules/@anthropic-ai/claude-agent-sdk": {
-      "version": "0.1.26",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk/-/claude-agent-sdk-0.1.26.tgz",
-      "integrity": "sha512-daVGe5x6KOFy9DKyDojw15eljBP+tPx+spAyGll/Rp/B6t+NP0Oiwpaiib0afjbCRbqXkWEHUJPE3yDFrMcZlA==",
+      "version": "0.1.27",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk/-/claude-agent-sdk-0.1.27.tgz",
+      "integrity": "sha512-HuMPW6spj2q8FODiP/WBCqUZAYGwDPoI1EpicP9KUXvuYk+2MZQYSaD7oiN6iNPupR2T5oJ2HY/D9OzjyCD2Mw==",
       "license": "SEE LICENSE IN README.md",
       "engines": {
         "node": ">=18.0.0"
@@ -69,9 +69,9 @@
       }
     },
     "node_modules/@anthropic-ai/claude-code": {
-      "version": "2.0.26",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-code/-/claude-code-2.0.26.tgz",
-      "integrity": "sha512-bk/sxGdTEbI0N7g+pTwYq5CNUjdAcvIKXvf/x5oRV9q24b42uq3gijrZGycSbWmtYTIjbzFAHeWw5n7Ic43/6w==",
+      "version": "2.0.27",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-code/-/claude-code-2.0.27.tgz",
+      "integrity": "sha512-Ml4tnBeJu+K7MUFLTg8q7U2BE39Vx2D+KI7t86QnFX/K90c58ekFDUUDnfAp1PqTe9vRms6vARJiWzNxrePinA==",
       "license": "SEE LICENSE IN README.md",
       "bin": {
         "claude": "cli.js"
diff --git a/package.json b/package.json
index f3ebb2b3..d4016f17 100644
--- a/package.json
+++ b/package.json
@@ -6,7 +6,7 @@
   "bin": {
     "claude-code-acp": "./dist/cli.js"
   },
-  "version": "0.6.10",
+  "version": "0.7.0",
   "description": "An ACP-compatible coding agent powered by the Claude Code SDK (TypeScript)",
   "main": "dist/index.js",
   "type": "module",
@@ -18,7 +18,7 @@
   ],
   "scripts": {
     "build": "tsc",
-    "start": "node dist/index.js",
+    "start": "node dist/cli.js",
     "dev": "npm run build && npm run start",
     "lint": "eslint src --ext .ts",
     "lint:fix": "eslint src --ext .ts --fix",
@@ -52,8 +52,8 @@
   "license": "Apache-2.0",
   "dependencies": {
     "@agentclientprotocol/sdk": "0.5.1",
-    "@anthropic-ai/claude-agent-sdk": "0.1.26",
-    "@anthropic-ai/claude-code": "2.0.26",
+    "@anthropic-ai/claude-agent-sdk": "0.1.27",
+    "@anthropic-ai/claude-code": "2.0.27",
     "@modelcontextprotocol/sdk": "1.20.2",
     "diff": "8.0.2",
     "express": "5.1.0",
diff --git a/src/acp-agent.ts b/src/acp-agent.ts
index 3ace6109..e30f4d32 100644
--- a/src/acp-agent.ts
+++ b/src/acp-agent.ts
@@ -210,9 +210,10 @@ export class ClaudeAcpAgent implements Agent {
       mcpServers,
       systemPrompt,
       settingSources: ["user", "project", "local"],
-      // If we want bypassPermissions to be an option, we have to start the session with it on.
-      // We change it immediately back to default below before returning the session.
-      permissionMode: IS_ROOT ? permissionMode : "bypassPermissions",
+      // If we want bypassPermissions to be an option, we have to allow it here.
+      // But it doesn't work in root mode, so we only activate it if it will work.
+      allowDangerouslySkipPermissions: !IS_ROOT,
+      permissionMode,
       permissionPromptToolName: PERMISSION_TOOL_NAME,
       stderr: (err) => console.error(err),
       // note: although not documented by the types, passing an absolute path
@@ -258,10 +259,6 @@ export class ClaudeAcpAgent implements Agent {
 
     const availableCommands = await getAvailableSlashCommands(q);
     const models = await getAvailableModels(q);
-    // Change it back to default
-    if (!IS_ROOT) {
-      await q.setPermissionMode(permissionMode);
-    }
 
     // Needs to happen after we return the session
     setTimeout(() => {