Prep 0.22.1 release (#438)

that's the nice part about unit tests, all green and still broken...

Relates to https://github.com/zed-industries/claude-agent-acp/pull/409.

CHANGELOG.md

@@ -1,5 +1,29 @@
 # Changelog
 
+## 0.22.1
+
+- Fix: invalid auth required state in gateway mode
+
+## 0.22.0
+
+- Use stable list sessions method (#429)
+- Use correct Claude CLI path for static binaries (#428)
+- Update claude-agent-sdk to 0.2.76 (#427)
+- fix: resolve model aliases in setSessionConfigOption (#401) (#403)
+- Reuse existing sessions for load/resume if possible (#426)
+- Remove interrupt flag from deny responses (#425)
+- Allow Bypass permissions mode after Exiting plan (#410)
+- Don't get out of sync when background task creates new init/result (try 2) (#400)
+- Add session/close support (#409)
+
+## 0.21.0
+
+- Update to claude-agent-sdk 0.2.71
+- show project-relative paths in tool call titles
+- Lib: pass through tools array to control built-in tool availability
+- fix: skip user replay
+- fix: handle renamed Agent tool in toolInfoFromToolUse
+
 ## 0.20.2
 
 - Update to @anthropic-ai/claude-agent-sdk@0.2.68

package.json

@@ -3,7 +3,7 @@
   "publishConfig": {
     "access": "public"
   },
-  "version": "0.20.2",
+  "version": "0.22.1",
   "description": "An ACP-compatible coding agent powered by the Claude Agent SDK (TypeScript)",
   "main": "dist/lib.js",
   "types": "dist/lib.d.ts",
@@ -60,22 +60,22 @@
   "author": "Zed Industries",
   "license": "Apache-2.0",
   "dependencies": {
-    "@agentclientprotocol/sdk": "0.14.1",
-    "@anthropic-ai/claude-agent-sdk": "0.2.68",
+    "@agentclientprotocol/sdk": "0.16.1",
+    "@anthropic-ai/claude-agent-sdk": "0.2.76",
     "zod": "^3.25.0 || ^4.0.0"
   },
   "devDependencies": {
     "@anthropic-ai/sdk": "0.78.0",
     "@eslint/js": "10.0.1",
-    "@types/node": "25.3.3",
-    "@typescript-eslint/eslint-plugin": "8.56.1",
-    "@typescript-eslint/parser": "8.56.1",
-    "eslint": "10.0.2",
+    "@types/node": "25.5.0",
+    "@typescript-eslint/eslint-plugin": "8.57.0",
+    "@typescript-eslint/parser": "8.57.0",
+    "eslint": "10.0.3",
     "eslint-config-prettier": "10.1.8",
     "globals": "17.4.0",
     "prettier": "3.8.1",
     "ts-node": "10.9.2",
     "typescript": "5.9.3",
-    "vitest": "4.0.18"
+    "vitest": "4.1.0"
   }
 }

src/acp-agent.ts

@@ -34,6 +34,8 @@ import {
   SetSessionModelResponse,
   SetSessionModeRequest,
   SetSessionModeResponse,
+  CloseSessionRequest,
+  CloseSessionResponse,
   TerminalHandle,
   TerminalOutputResponse,
   WriteTextFileRequest,
@@ -60,7 +62,6 @@ import { randomUUID } from "node:crypto";
 import * as fs from "node:fs";
 import * as os from "node:os";
 import * as path from "node:path";
-import { fileURLToPath } from "node:url";
 import packageJson from "../package.json" with { type: "json" };
 import { SettingsManager } from "./settings.js";
 import {
@@ -110,13 +111,16 @@ type Session = {
   query: Query;
   input: Pushable<SDKUserMessage>;
   cancelled: boolean;
-  permissionMode: PermissionMode;
+  cwd: string;
   settingsManager: SettingsManager;
   accumulatedUsage: AccumulatedUsage;
+  modes: SessionModeState;
+  models: SessionModelState;
   configOptions: SessionConfigOption[];
   promptRunning: boolean;
   pendingMessages: Map<string, { resolve: (cancelled: boolean) => void; order: number }>;
   nextPendingOrder: number;
+  abortController: AbortController;
 };
 
 type BackgroundTerminal =
@@ -148,23 +152,12 @@ export type NewSessionMeta = {
      *   - hooks (merged with ACP's hooks)
      *   - mcpServers (merged with ACP's mcpServers)
      *   - disallowedTools (merged with ACP's disallowedTools)
+     *   - tools (passed through; defaults to claude_code preset if not provided)
      */
     options?: Options;
   };
 };
 
-/**
- * Extended ClientCapabilities with `auth` field.
- * TODO: Remove once `auth` is added to the ACP SDK schema.
- */
-type ClientCapabilitiesWithAuth = ClientCapabilities & {
-  auth?: {
-    _meta?: {
-      gateway?: boolean;
-    };
-  };
-};
-
 /**
  * Extra metadata for 'gateway' authentication requests.
  */
@@ -219,6 +212,12 @@ function isStaticBinary(): boolean {
   return process.env.CLAUDE_AGENT_ACP_IS_SINGLE_FILE_BUN !== undefined;
 }
 
+export async function claudeCliPath(): Promise<string> {
+  return isStaticBinary()
+    ? (await import("@anthropic-ai/claude-agent-sdk/embed")).default
+    : import.meta.resolve("@anthropic-ai/claude-agent-sdk").replace("sdk.mjs", "cli.js");
+}
+
 function shouldHideClaudeAuth(): boolean {
   return process.argv.includes("--hide-claude-auth");
 }
@@ -286,17 +285,9 @@ export class ClaudeAcpAgent implements Agent {
   async initialize(request: InitializeRequest): Promise<InitializeResponse> {
     this.clientCapabilities = request.clientCapabilities;
 
-    // Default authMethod
-    const authMethod: any = {
-      description: "Run `claude /login` in the terminal",
-      name: "Log in with Claude",
-      id: "claude-login",
-    };
-
     // Bypasses standard auth by routing requests through a custom Anthropic-protocol gateway.
     // Only offered when the client advertises `auth._meta.gateway` capability.
-    const clientCaps = request.clientCapabilities as ClientCapabilitiesWithAuth | undefined;
-    const supportsGatewayAuth = clientCaps?.auth?._meta?.gateway === true;
+    const supportsGatewayAuth = request.clientCapabilities?.auth?._meta?.gateway === true;
 
     const gatewayAuthMethod: AuthMethod = {
       id: "gateway",
@@ -309,25 +300,22 @@ export class ClaudeAcpAgent implements Agent {
       },
     };
 
+    const terminalAuthMethod: any = {
+      description: "Run `claude /login` in the terminal",
+      name: "Log in with Claude",
+      id: "claude-login",
+      type: "terminal",
+      args: ["--cli"],
+    };
+    const supportsTerminalAuth = request.clientCapabilities?.auth?.terminal === true;
+
     // If client supports terminal-auth capability, use that instead.
-    const supportsTerminalAuth = request.clientCapabilities?._meta?.["terminal-auth"] === true;
-    if (supportsTerminalAuth) {
-      let command: string;
-      let args: string[];
-
-      if (isStaticBinary()) {
-        command = process.execPath;
-        args = ["--cli"];
-      } else {
-        const cliPath = fileURLToPath(import.meta.resolve("@anthropic-ai/claude-agent-sdk/cli.js"));
-        command = "node";
-        args = [cliPath];
-      }
-
-      authMethod._meta = {
+    const supportsMetaTerminalAuth = request.clientCapabilities?._meta?.["terminal-auth"] === true;
+    if (supportsMetaTerminalAuth) {
+      terminalAuthMethod._meta = {
         "terminal-auth": {
-          command,
-          args,
+          command: process.execPath,
+          args: [...process.argv.slice(1), "--cli"],
           label: "Claude Login",
         },
       };
@@ -354,6 +342,7 @@ export class ClaudeAcpAgent implements Agent {
           fork: {},
           list: {},
           resume: {},
+          close: {},
         },
       },
       agentInfo: {
@@ -362,8 +351,9 @@ export class ClaudeAcpAgent implements Agent {
         version: packageJson.version,
       },
       authMethods: [
-        // Terminal auth can also be used for API keys, so don't gate it on --hide-claude-auth.
-        ...(shouldHideClaudeAuth() && !supportsTerminalAuth ? [] : [authMethod]),
+        ...(!shouldHideClaudeAuth() && (supportsTerminalAuth || supportsMetaTerminalAuth)
+          ? [terminalAuthMethod]
+          : []),
         ...(supportsGatewayAuth ? [gatewayAuthMethod] : []),
       ],
     };
@@ -409,34 +399,17 @@ export class ClaudeAcpAgent implements Agent {
   }
 
   async unstable_resumeSession(params: ResumeSessionRequest): Promise<ResumeSessionResponse> {
-    const response = await this.createSession(
-      {
-        cwd: params.cwd,
-        mcpServers: params.mcpServers ?? [],
-        _meta: params._meta,
-      },
-      {
-        resume: params.sessionId,
-      },
-    );
+    const result = await this.getOrCreateSession(params);
+
     // Needs to happen after we return the session
     setTimeout(() => {
-      this.sendAvailableCommandsUpdate(response.sessionId);
+      this.sendAvailableCommandsUpdate(params.sessionId);
     }, 0);
-    return response;
+    return result;
   }
 
   async loadSession(params: LoadSessionRequest): Promise<LoadSessionResponse> {
-    const response = await this.createSession(
-      {
-        cwd: params.cwd,
-        mcpServers: params.mcpServers ?? [],
-        _meta: params._meta,
-      },
-      {
-        resume: params.sessionId,
-      },
-    );
+    const result = await this.getOrCreateSession(params);
 
     await this.replaySessionHistory(params.sessionId);
 
@@ -445,14 +418,10 @@ export class ClaudeAcpAgent implements Agent {
       this.sendAvailableCommandsUpdate(params.sessionId);
     }, 0);
 
-    return {
-      modes: response.modes,
-      models: response.models,
-      configOptions: response.configOptions,
-    };
+    return result;
   }
 
-  async unstable_listSessions(params: ListSessionsRequest): Promise<ListSessionsResponse> {
+  async listSessions(params: ListSessionsRequest): Promise<ListSessionsResponse> {
     const sdk_sessions = await listSessions({ dir: params.cwd ?? undefined });
     const sessions = [];
 
@@ -496,17 +465,23 @@ export class ClaudeAcpAgent implements Agent {
 
     const userMessage = promptToClaude(params);
 
+    const promptUuid = randomUUID();
+    userMessage.uuid = promptUuid;
+
+    let promptReplayed = false;
+
     if (session.promptRunning) {
-      const uuid = randomUUID();
-      userMessage.uuid = uuid;
       session.input.push(userMessage);
       const order = session.nextPendingOrder++;
       const cancelled = await new Promise<boolean>((resolve) => {
-        session.pendingMessages.set(uuid, { resolve, order });
+        session.pendingMessages.set(promptUuid, { resolve, order });
       });
       if (cancelled) {
         return { stopReason: "cancelled" };
       }
+      // The replay resolved the promise, mark in this loop too,
+      // so we don't treat the next result as a background task's result.
+      promptReplayed = true;
     } else {
       session.input.push(userMessage);
     }
@@ -553,6 +528,7 @@ export class ClaudeAcpAgent implements Agent {
                     content: { type: "text", text: "\n\nCompacting completed." },
                   },
                 });
+                promptReplayed = true;
                 break;
               }
               case "local_command_output": {
@@ -563,6 +539,7 @@ export class ClaudeAcpAgent implements Agent {
                     content: { type: "text", text: message.content },
                   },
                 });
+                promptReplayed = true;
                 break;
               }
               case "hook_started":
@@ -581,10 +558,6 @@ export class ClaudeAcpAgent implements Agent {
             }
             break;
           case "result": {
-            if (session.cancelled) {
-              return { stopReason: "cancelled" };
-            }
-
             // Accumulate usage from this result
             session.accumulatedUsage.inputTokens += message.usage.input_tokens;
             session.accumulatedUsage.outputTokens += message.usage.output_tokens;
@@ -612,6 +585,18 @@ export class ClaudeAcpAgent implements Agent {
               });
             }
 
+            if (!promptReplayed) {
+              // This result is from a background task that finished after
+              // the previous prompt loop ended. Consume it and continue
+              // waiting for our own prompt's result.
+              this.logger.log(`Session ${params.sessionId}: consuming background task result`);
+              break;
+            }
+
+            if (session.cancelled) {
+              return { stopReason: "cancelled" };
+            }
+
             // Build the usage response
             const usage: PromptResponse["usage"] = {
               inputTokens: session.accumulatedUsage.inputTokens,
@@ -672,7 +657,10 @@ export class ClaudeAcpAgent implements Agent {
               this.toolUseCache,
               this.client,
               this.logger,
-              { clientCapabilities: this.clientCapabilities },
+              {
+                clientCapabilities: this.clientCapabilities,
+                cwd: session.cwd,
+              },
             )) {
               await this.client.sessionUpdate(notification);
             }
@@ -684,8 +672,14 @@ export class ClaudeAcpAgent implements Agent {
               break;
             }
 
-            // Check for queued prompt replay
+            // Check for prompt replay
             if (message.type === "user" && "uuid" in message && message.uuid) {
+              if (message.uuid === promptUuid) {
+                // Our own prompt was replayed back — we're now processing
+                // our prompt's response (not a background task's).
+                promptReplayed = true;
+                break;
+              }
               const pending = session.pendingMessages.get(message.uuid as string);
               if (pending) {
                 pending.resolve(false);
@@ -695,6 +689,10 @@ export class ClaudeAcpAgent implements Agent {
                 // the loop of the next prompt continues running
                 return { stopReason: "end_turn" };
               }
+              if ("isReplay" in message && message.isReplay) {
+                // not pending or unrelated replay message
+                break;
+              }
             }
 
             // Store latest assistant usage (excluding subagents)
@@ -780,6 +778,7 @@ export class ClaudeAcpAgent implements Agent {
               {
                 clientCapabilities: this.clientCapabilities,
                 parentToolUseId: message.parent_tool_use_id,
+                cwd: session.cwd,
               },
             )) {
               await this.client.sessionUpdate(notification);
@@ -851,6 +850,19 @@ export class ClaudeAcpAgent implements Agent {
     await session.query.interrupt();
   }
 
+  async unstable_closeSession(params: CloseSessionRequest): Promise<CloseSessionResponse> {
+    const session = this.sessions[params.sessionId];
+    if (!session) {
+      throw new Error("Session not found");
+    }
+    await this.cancel({ sessionId: params.sessionId });
+
+    session.abortController.abort();
+    delete this.sessions[params.sessionId];
+
+    return {};
+  }
+
   async unstable_setSessionModel(
     params: SetSessionModelRequest,
   ): Promise<SetSessionModelResponse | void> {
@@ -878,6 +890,9 @@ export class ClaudeAcpAgent implements Agent {
     if (!session) {
       throw new Error("Session not found");
     }
+    if (typeof params.value !== "string") {
+      throw new Error(`Invalid value for config option ${params.configId}: ${params.value}`);
+    }
 
     const option = session.configOptions.find((o) => o.id === params.configId);
     if (!option) {
@@ -888,26 +903,50 @@ export class ClaudeAcpAgent implements Agent {
       "options" in option && Array.isArray(option.options)
         ? option.options.flatMap((o) => ("options" in o ? o.options : [o]))
         : [];
-    const validValue = allValues.find((o) => o.value === params.value);
+    let validValue = allValues.find((o) => o.value === params.value);
+
+    // For model options, fall back to resolveModelPreference when the exact
+    // value doesn't match.  This lets callers use human-friendly aliases like
+    // "opus" or "sonnet" instead of full model IDs like "claude-opus-4-6".
+    if (!validValue && params.configId === "model") {
+      const modelInfos: ModelInfo[] = allValues.map((o) => ({
+        value: o.value,
+        displayName: o.name,
+        description: o.description ?? "",
+      }));
+      const resolved = resolveModelPreference(modelInfos, params.value);
+      if (resolved) {
+        validValue = allValues.find((o) => o.value === resolved.value);
+      }
+    }
+
     if (!validValue) {
       throw new Error(`Invalid value for config option ${params.configId}: ${params.value}`);
     }
 
+    // Use the canonical option value so downstream code always receives the
+    // model ID rather than the caller-supplied alias.
+    const resolvedValue = validValue.value;
+
     if (params.configId === "mode") {
-      await this.applySessionMode(params.sessionId, params.value);
+      await this.applySessionMode(params.sessionId, resolvedValue);
       await this.client.sessionUpdate({
         sessionId: params.sessionId,
         update: {
           sessionUpdate: "current_mode_update",
-          currentModeId: params.value,
+          currentModeId: resolvedValue,
         },
       });
     } else if (params.configId === "model") {
-      await this.sessions[params.sessionId].query.setModel(params.value);
+      await this.sessions[params.sessionId].query.setModel(resolvedValue);
     }
 
+    this.syncSessionConfigState(session, params.configId, params.value);
+
     session.configOptions = session.configOptions.map((o) =>
-      o.id === params.configId ? { ...o, currentValue: params.value } : o,
+      o.id === params.configId && typeof o.currentValue === "string"
+        ? { ...o, currentValue: resolvedValue }
+        : o,
     );
 
     return { configOptions: session.configOptions };
@@ -924,7 +963,6 @@ export class ClaudeAcpAgent implements Agent {
       default:
         throw new Error("Invalid Mode");
     }
-    this.sessions[sessionId].permissionMode = modeId;
     try {
       await this.sessions[sessionId].query.setPermissionMode(modeId);
     } catch (error) {
@@ -954,7 +992,11 @@ export class ClaudeAcpAgent implements Agent {
         toolUseCache,
         this.client,
         this.logger,
-        { registerHooks: false, clientCapabilities: this.clientCapabilities },
+        {
+          registerHooks: false,
+          clientCapabilities: this.clientCapabilities,
+          cwd: this.sessions[sessionId]?.cwd,
+        },
       )) {
         await this.client.sessionUpdate(notification);
       }
@@ -979,21 +1021,29 @@ export class ClaudeAcpAgent implements Agent {
         return {
           behavior: "deny",
           message: "Session not found",
-          interrupt: true,
         };
       }
 
       if (toolName === "ExitPlanMode") {
+        const options = [
+          {
+            kind: "allow_always",
+            name: "Yes, and auto-accept edits",
+            optionId: "acceptEdits",
+          },
+          { kind: "allow_once", name: "Yes, and manually approve edits", optionId: "default" },
+          { kind: "reject_once", name: "No, keep planning", optionId: "plan" },
+        ];
+        if (ALLOW_BYPASS) {
+          options.unshift({
+            kind: "allow_always",
+            name: "Yes, and bypass permissions",
+            optionId: "bypassPermissions",
+          });
+        }
+
         const response = await this.client.requestPermission({
-          options: [
-            {
-              kind: "allow_always",
-              name: "Yes, and auto-accept edits",
-              optionId: "acceptEdits",
-            },
-            { kind: "allow_once", name: "Yes, and manually approve edits", optionId: "default" },
-            { kind: "reject_once", name: "No, keep planning", optionId: "plan" },
-          ],
+          options,
           sessionId,
           toolCall: {
             toolCallId: toolUseID,
@@ -1001,6 +1051,7 @@ export class ClaudeAcpAgent implements Agent {
             ...toolInfoFromToolUse(
               { name: toolName, input: toolInput, id: toolUseID },
               supportsTerminalOutput,
+              session?.cwd,
             ),
           },
         });
@@ -1010,9 +1061,10 @@ export class ClaudeAcpAgent implements Agent {
         }
         if (
           response.outcome?.outcome === "selected" &&
-          (response.outcome.optionId === "default" || response.outcome.optionId === "acceptEdits")
+          (response.outcome.optionId === "default" ||
+            response.outcome.optionId === "acceptEdits" ||
+            response.outcome.optionId === "bypassPermissions")
         ) {
-          session.permissionMode = response.outcome.optionId;
           await this.client.sessionUpdate({
             sessionId,
             update: {
@@ -1033,12 +1085,11 @@ export class ClaudeAcpAgent implements Agent {
           return {
             behavior: "deny",
             message: "User rejected request to exit plan mode.",
-            interrupt: true,
           };
         }
       }
 
-      if (session.permissionMode === "bypassPermissions") {
+      if (session.modes.currentModeId === "bypassPermissions") {
         return {
           behavior: "allow",
           updatedInput: toolInput,
@@ -1065,6 +1116,7 @@ export class ClaudeAcpAgent implements Agent {
           ...toolInfoFromToolUse(
             { name: toolName, input: toolInput, id: toolUseID },
             supportsTerminalOutput,
+            session?.cwd,
           ),
         },
       });
@@ -1098,7 +1150,6 @@ export class ClaudeAcpAgent implements Agent {
         return {
           behavior: "deny",
           message: "User refused permission to run tool",
-          interrupt: true,
         };
       }
     };
@@ -1125,8 +1176,10 @@ export class ClaudeAcpAgent implements Agent {
     const session = this.sessions[sessionId];
     if (!session) return;
 
+    this.syncSessionConfigState(session, configId, value);
+
     session.configOptions = session.configOptions.map((o) =>
-      o.id === configId ? { ...o, currentValue: value } : o,
+      o.id === configId && typeof o.currentValue === "string" ? { ...o, currentValue: value } : o,
     );
 
     await this.client.sessionUpdate({
@@ -1138,6 +1191,49 @@ export class ClaudeAcpAgent implements Agent {
     });
   }
 
+  private syncSessionConfigState(session: Session, configId: string, value: string): void {
+    if (configId === "mode") {
+      session.modes = { ...session.modes, currentModeId: value };
+    } else if (configId === "model") {
+      session.models = { ...session.models, currentModelId: value };
+    }
+  }
+
+  private async getOrCreateSession(params: {
+    sessionId: string;
+    cwd: string;
+    mcpServers?: NewSessionRequest["mcpServers"];
+    _meta?: NewSessionRequest["_meta"];
+  }): Promise<NewSessionResponse> {
+    const existingSession = this.sessions[params.sessionId];
+    if (existingSession) {
+      return {
+        sessionId: params.sessionId,
+        modes: existingSession.modes,
+        models: existingSession.models,
+        configOptions: existingSession.configOptions,
+      };
+    }
+
+    const response = await this.createSession(
+      {
+        cwd: params.cwd,
+        mcpServers: params.mcpServers ?? [],
+        _meta: params._meta,
+      },
+      {
+        resume: params.sessionId,
+      },
+    );
+
+    return {
+      sessionId: response.sessionId,
+      modes: response.modes,
+      models: response.models,
+      configOptions: response.configOptions,
+    };
+  }
+
   private async createSession(
     params: NewSessionRequest,
     creationOpts: { resume?: string; forkSession?: boolean } = {},
@@ -1213,26 +1309,15 @@ export class ClaudeAcpAgent implements Agent {
     // Disable this for now, not a great way to expose this over ACP at the moment (in progress work so we can revisit)
     const disallowedTools = ["AskUserQuestion"];
 
-    // Check if built-in tools should be disabled
-    if (params._meta?.disableBuiltInTools === true) {
-      // When built-in tools are disabled, explicitly disallow all of them
-      disallowedTools.push(
-        "Read",
-        "Write",
-        "Edit",
-        "Bash",
-        "Glob",
-        "Grep",
-        "Task",
-        "TodoWrite",
-        "ExitPlanMode",
-        "WebSearch",
-        "WebFetch",
-        "SlashCommand",
-        "Skill",
-        "NotebookEdit",
-      );
-    }
+    // Resolve which built-in tools to expose.
+    // Explicit tools array from _meta.claudeCode.options takes precedence.
+    // disableBuiltInTools is a legacy shorthand for tools: [] — kept for
+    // backward compatibility but callers should prefer the tools array.
+    const tools: Options["tools"] =
+      userProvidedOptions?.tools ??
+      (params._meta?.disableBuiltInTools === true ? [] : { type: "preset", preset: "claude_code" });
+
+    const abortController = userProvidedOptions?.abortController || new AbortController();
 
     const options: Options = {
       systemPrompt,
@@ -1255,19 +1340,18 @@ export class ClaudeAcpAgent implements Agent {
       canUseTool: this.canUseTool(sessionId),
       // note: although not documented by the types, passing an absolute path
       // here works to find zed's managed node version.
-      executable: process.execPath as any,
-      executableArgs: isStaticBinary() ? ["--cli"] : undefined,
+      executable: isStaticBinary() ? undefined : (process.execPath as any),
       ...(process.env.CLAUDE_CODE_EXECUTABLE
         ? { pathToClaudeCodeExecutable: process.env.CLAUDE_CODE_EXECUTABLE }
         : isStaticBinary()
-          ? { pathToClaudeCodeExecutable: process.execPath }
+          ? { pathToClaudeCodeExecutable: await claudeCliPath() }
           : {}),
       extraArgs: {
         ...userProvidedOptions?.extraArgs,
         "replay-user-messages": "",
       },
       disallowedTools: [...(userProvidedOptions?.disallowedTools || []), ...disallowedTools],
-      tools: { type: "preset", preset: "claude_code" },
+      tools,
       hooks: {
         ...userProvidedOptions?.hooks,
         PostToolUse: [
@@ -1276,10 +1360,6 @@ export class ClaudeAcpAgent implements Agent {
             hooks: [
               createPostToolUseHook(this.logger, {
                 onEnterPlanMode: async () => {
-                  const session = this.sessions[sessionId];
-                  if (session) {
-                    session.permissionMode = "plan";
-                  }
                   await this.client.sessionUpdate({
                     sessionId,
                     update: {
@@ -1295,6 +1375,7 @@ export class ClaudeAcpAgent implements Agent {
         ],
       },
       ...creationOpts,
+      abortController,
     };
 
     if (creationOpts?.resume === undefined || creationOpts?.forkSession) {
@@ -1303,7 +1384,6 @@ export class ClaudeAcpAgent implements Agent {
     }
 
     // Handle abort controller from meta options
-    const abortController = userProvidedOptions?.abortController;
     if (abortController?.signal.aborted) {
       throw new Error("Cancelled");
     }
@@ -1327,7 +1407,11 @@ export class ClaudeAcpAgent implements Agent {
       throw error;
     }
 
-    if (shouldHideClaudeAuth() && initializationResult.account.subscriptionType) {
+    if (
+      shouldHideClaudeAuth() &&
+      initializationResult.account.subscriptionType &&
+      this.gatewayAuthMeta === null
+    ) {
       throw RequestError.authRequired(
         undefined,
         "This integration does not support using claude.ai subscriptions.",
@@ -1378,7 +1462,7 @@ export class ClaudeAcpAgent implements Agent {
       query: q,
       input: input,
       cancelled: false,
-      permissionMode,
+      cwd: params.cwd,
       settingsManager,
       accumulatedUsage: {
         inputTokens: 0,
@@ -1386,10 +1470,13 @@ export class ClaudeAcpAgent implements Agent {
         cachedReadTokens: 0,
         cachedWriteTokens: 0,
       },
+      modes,
+      models,
       configOptions,
       promptRunning: false,
       pendingMessages: new Map(),
       nextPendingOrder: 0,
+      abortController,
     };
 
     return {
@@ -1693,6 +1780,7 @@ export function toAcpNotifications(
     registerHooks?: boolean;
     clientCapabilities?: ClientCapabilities;
     parentToolUseId?: string | null;
+    cwd?: string;
   },
 ): SessionNotification[] {
   const registerHooks = options?.registerHooks !== false;
@@ -1821,7 +1909,7 @@ export function toAcpNotifications(
               toolCallId: chunk.id,
               sessionUpdate: "tool_call_update",
               rawInput,
-              ...toolInfoFromToolUse(chunk, supportsTerminalOutput),
+              ...toolInfoFromToolUse(chunk, supportsTerminalOutput, options?.cwd),
             };
           } else {
             // First encounter (streaming content_block_start or replay) —
@@ -1839,7 +1927,7 @@ export function toAcpNotifications(
               sessionUpdate: "tool_call",
               rawInput,
               status: "pending",
-              ...toolInfoFromToolUse(chunk, supportsTerminalOutput),
+              ...toolInfoFromToolUse(chunk, supportsTerminalOutput, options?.cwd),
             };
           }
         }
@@ -1945,7 +2033,10 @@ export function streamEventToAcpNotifications(
   toolUseCache: ToolUseCache,
   client: AgentSideConnection,
   logger: Logger,
-  options?: { clientCapabilities?: ClientCapabilities },
+  options?: {
+    clientCapabilities?: ClientCapabilities;
+    cwd?: string;
+  },
 ): SessionNotification[] {
   const event = message.event;
   switch (event.type) {
@@ -1960,6 +2051,7 @@ export function streamEventToAcpNotifications(
         {
           clientCapabilities: options?.clientCapabilities,
           parentToolUseId: message.parent_tool_use_id,
+          cwd: options?.cwd,
         },
       );
     case "content_block_delta":
@@ -1973,6 +2065,7 @@ export function streamEventToAcpNotifications(
         {
           clientCapabilities: options?.clientCapabilities,
           parentToolUseId: message.parent_tool_use_id,
+          cwd: options?.cwd,
         },
       );
     // No content

src/index.ts

@@ -2,12 +2,11 @@
 
 // Load managed settings and apply environment variables
 import { loadManagedSettings, applyEnvironmentSettings } from "./utils.js";
-import { runAcp } from "./acp-agent.js";
+import { claudeCliPath, runAcp } from "./acp-agent.js";
 
 if (process.argv.includes("--cli")) {
   process.argv = process.argv.filter((arg) => arg !== "--cli");
-  // @ts-expect-error -- no types
-  await import("@anthropic-ai/claude-agent-sdk/cli.js");
+  await import(await claudeCliPath());
 } else {
   const managedSettings = loadManagedSettings();
   if (managedSettings) {

src/lib.ts

@@ -15,7 +15,12 @@ export {
   Pushable,
   unreachable,
 } from "./utils.js";
-export { toolInfoFromToolUse, planEntries, toolUpdateFromToolResult } from "./tools.js";
+export {
+  toolInfoFromToolUse,
+  toDisplayPath,
+  planEntries,
+  toolUpdateFromToolResult,
+} from "./tools.js";
 export {
   SettingsManager,
   type ClaudeCodeSettings,

src/tests/acp-agent.test.ts

@@ -1,4 +1,4 @@
-import { describe, it, expect, beforeAll, afterAll } from "vitest";
+import { describe, it, expect, beforeAll, afterAll, vi } from "vitest";
 import { spawn, spawnSync } from "child_process";
 import {
   Agent,
@@ -20,10 +20,11 @@ import { nodeToWebWritable, nodeToWebReadable } from "../utils.js";
 import {
   markdownEscape,
   toolInfoFromToolUse,
+  toDisplayPath,
   toolUpdateFromToolResult,
   toolUpdateFromEditToolResponse,
 } from "../tools.js";
-import { toAcpNotifications, promptToClaude, ClaudeAcpAgent } from "../acp-agent.js";
+import { toAcpNotifications, promptToClaude, ClaudeAcpAgent, claudeCliPath } from "../acp-agent.js";
 import { Pushable } from "../utils.js";
 import { query, SDKAssistantMessage } from "@anthropic-ai/claude-agent-sdk";
 import { randomUUID } from "crypto";
@@ -227,7 +228,7 @@ describe.skipIf(!process.env.RUN_INTEGRATION_TESTS)("ACP subprocess integration"
       sessionId: newSessionResponse.sessionId,
     });
 
-    expect(client.takeReceivedText()).toBe("Error: No messages to compact");
+    expect(client.takeReceivedText()).toBe("Compacting...\n\nCompacting completed.");
 
     // Send something
     await connection.prompt({
@@ -248,7 +249,7 @@ describe.skipIf(!process.env.RUN_INTEGRATION_TESTS)("ACP subprocess integration"
       sessionId: newSessionResponse.sessionId,
     });
 
-    expect(client.takeReceivedText()).toContain("");
+    expect(client.takeReceivedText()).toContain("Compacting...\n\nCompacting completed.");
   }, 30000);
 });
 
@@ -563,6 +564,20 @@ describe("tool conversions", () => {
     });
   });
 
+  it("should use relative path in title when cwd is provided", () => {
+    const tool_use = {
+      type: "tool_use",
+      id: "toolu_01READ_CWD",
+      name: "Read",
+      input: { file_path: "/Users/test/project/src/main.ts" },
+    };
+
+    const result = toolInfoFromToolUse(tool_use, false, "/Users/test/project");
+    expect(result.title).toBe("Read src/main.ts");
+    // locations.path stays absolute for navigation
+    expect(result.locations).toStrictEqual([{ path: "/Users/test/project/src/main.ts", line: 1 }]);
+  });
+
   it("should handle plan entries", () => {
     const received: SDKAssistantMessage = {
       type: "assistant",
@@ -969,6 +984,22 @@ describe("tool conversions", () => {
   });
 });
 
+describe("toDisplayPath", () => {
+  it("should relativize paths inside cwd and keep absolute paths outside", () => {
+    expect(toDisplayPath("/Users/test/project/src/main.ts", "/Users/test/project")).toBe(
+      "src/main.ts",
+    );
+    expect(toDisplayPath("/etc/hosts", "/Users/test/project")).toBe("/etc/hosts");
+    expect(toDisplayPath("/Users/test/project/src/main.ts")).toBe(
+      "/Users/test/project/src/main.ts",
+    );
+    // Partial directory name match should not be treated as inside cwd
+    expect(toDisplayPath("/Users/test/project-other/file.ts", "/Users/test/project")).toBe(
+      "/Users/test/project-other/file.ts",
+    );
+  });
+});
+
 describe("toolUpdateFromEditToolResponse", () => {
   it("should return empty for non-object input", () => {
     expect(toolUpdateFromEditToolResponse(null)).toEqual({});
@@ -1140,6 +1171,11 @@ describe("prompt conversion", () => {
 });
 
 describe.skipIf(!process.env.RUN_INTEGRATION_TESTS)("SDK behavior", () => {
+  it("finds vendored cli path", async () => {
+    const path = await claudeCliPath();
+    expect(path).toContain("@anthropic-ai/claude-agent-sdk/cli.js");
+  });
+
   it("query has a 'default' model", async () => {
     const q = query({ prompt: "hi" });
     const models = await q.supportedModels();
@@ -1269,17 +1305,37 @@ describe("stop reason propagation", () => {
     };
   }
 
-  function* messageGenerator(messages: any[]) {
-    yield* messages;
-  }
-
   function injectSession(agent: ClaudeAcpAgent, messages: any[]) {
-    const gen = messageGenerator(messages);
+    const input = new Pushable<any>();
+    async function* messageGenerator() {
+      // Wait for the prompt to push its user message so we can replay it
+      const iter = input[Symbol.asyncIterator]();
+      const { value: userMessage, done } = await iter.next();
+      if (!done && userMessage) {
+        yield {
+          type: "user",
+          message: userMessage.message,
+          parent_tool_use_id: null,
+          uuid: userMessage.uuid,
+          session_id: "test-session",
+          isReplay: true,
+        };
+      }
+      yield* messages;
+    }
     agent.sessions["test-session"] = {
-      query: gen as any,
-      input: new Pushable(),
+      query: messageGenerator() as any,
+      input,
       cancelled: false,
-      permissionMode: "default",
+      cwd: "/test",
+      modes: {
+        currentModeId: "default",
+        availableModes: [],
+      },
+      models: {
+        currentModelId: "default",
+        availableModels: [],
+      },
       settingsManager: {} as any,
       accumulatedUsage: {
         inputTokens: 0,
@@ -1291,6 +1347,7 @@ describe("stop reason propagation", () => {
       promptRunning: false,
       pendingMessages: new Map(),
       nextPendingOrder: 0,
+      abortController: new AbortController(),
     };
   }
 
@@ -1360,6 +1417,88 @@ describe("stop reason propagation", () => {
     expect(response.stopReason).toBe("end_turn");
   });
 
+  it("should consume background task results and return the prompt's own result", async () => {
+    const agent = createMockAgent();
+    const input = new Pushable<any>();
+
+    const backgroundTaskResult = createResultMessage({
+      subtype: "success",
+      stop_reason: null,
+      is_error: false,
+    });
+    // Background task used some tokens
+    backgroundTaskResult.usage.input_tokens = 100;
+    backgroundTaskResult.usage.output_tokens = 50;
+
+    const promptResult = createResultMessage({
+      subtype: "success",
+      stop_reason: null,
+      is_error: false,
+    });
+
+    async function* messageGenerator() {
+      // Background task init + result arrive before our prompt's replay
+      yield { type: "system", subtype: "init", session_id: "test-session" };
+      yield backgroundTaskResult;
+
+      // Now the prompt's user message replay arrives
+      const iter = input[Symbol.asyncIterator]();
+      const { value: userMessage } = await iter.next();
+      yield {
+        type: "user",
+        message: userMessage.message,
+        parent_tool_use_id: null,
+        uuid: userMessage.uuid,
+        session_id: "test-session",
+        isReplay: true,
+      };
+
+      // Then the prompt's own result
+      yield promptResult;
+    }
+
+    agent.sessions["test-session"] = {
+      query: messageGenerator() as any,
+      input,
+      cwd: "/tmp/test",
+      cancelled: false,
+      modes: {
+        currentModeId: "default",
+        availableModes: [],
+      },
+      models: {
+        currentModelId: "default",
+        availableModels: [],
+      },
+      settingsManager: {} as any,
+      accumulatedUsage: {
+        inputTokens: 0,
+        outputTokens: 0,
+        cachedReadTokens: 0,
+        cachedWriteTokens: 0,
+      },
+      abortController: new AbortController(),
+      configOptions: [],
+      promptRunning: false,
+      pendingMessages: new Map(),
+      nextPendingOrder: 0,
+    };
+
+    const response = await agent.prompt({
+      sessionId: "test-session",
+      prompt: [{ type: "text", text: "test" }],
+    });
+
+    expect(response.stopReason).toBe("end_turn");
+    // Usage should include both background task and prompt result tokens
+    expect(response.usage?.inputTokens).toBe(
+      backgroundTaskResult.usage.input_tokens + promptResult.usage.input_tokens,
+    );
+    expect(response.usage?.outputTokens).toBe(
+      backgroundTaskResult.usage.output_tokens + promptResult.usage.output_tokens,
+    );
+  });
+
   it("should throw internal error for success with is_error true and no max_tokens", async () => {
     const agent = createMockAgent();
     injectSession(agent, [
@@ -1379,3 +1518,87 @@ describe("stop reason propagation", () => {
     ).rejects.toThrow("Internal error");
   });
 });
+
+describe("session/close", () => {
+  function createMockAgent() {
+    const mockClient = {
+      sessionUpdate: async () => {},
+    } as unknown as AgentSideConnection;
+    return new ClaudeAcpAgent(mockClient, { log: () => {}, error: () => {} });
+  }
+
+  function injectSession(agent: ClaudeAcpAgent, sessionId: string) {
+    function* empty() {}
+    const gen = Object.assign(empty(), { interrupt: vi.fn() });
+    agent.sessions[sessionId] = {
+      query: gen as any,
+      input: new Pushable(),
+      cancelled: false,
+      cwd: "/test",
+      modes: {
+        currentModeId: "default",
+        availableModes: [],
+      },
+      models: {
+        currentModelId: "default",
+        availableModels: [],
+      },
+      settingsManager: {} as any,
+      accumulatedUsage: {
+        inputTokens: 0,
+        outputTokens: 0,
+        cachedReadTokens: 0,
+        cachedWriteTokens: 0,
+      },
+      configOptions: [],
+      promptRunning: false,
+      pendingMessages: new Map(),
+      nextPendingOrder: 0,
+      abortController: new AbortController(),
+    };
+    return agent.sessions[sessionId]!;
+  }
+
+  it("should close an existing session and remove it", async () => {
+    const agent = createMockAgent();
+    const session = injectSession(agent, "session-1");
+
+    expect(agent.sessions["session-1"]).toBeDefined();
+
+    const result = await agent.unstable_closeSession({ sessionId: "session-1" });
+
+    expect(result).toEqual({});
+    expect(agent.sessions["session-1"]).toBeUndefined();
+    expect(session.query.interrupt).toHaveBeenCalled();
+  });
+
+  it("should abort the session's abort controller", async () => {
+    const agent = createMockAgent();
+    const session = injectSession(agent, "session-2");
+
+    expect(session.abortController.signal.aborted).toBe(false);
+
+    await agent.unstable_closeSession({ sessionId: "session-2" });
+
+    expect(session.abortController.signal.aborted).toBe(true);
+  });
+
+  it("should throw when closing a non-existent session", async () => {
+    const agent = createMockAgent();
+
+    await expect(agent.unstable_closeSession({ sessionId: "non-existent" })).rejects.toThrow(
+      "Session not found",
+    );
+  });
+
+  it("should not affect other sessions when closing one", async () => {
+    const agent = createMockAgent();
+    injectSession(agent, "session-a");
+    injectSession(agent, "session-b");
+
+    await agent.unstable_closeSession({ sessionId: "session-a" });
+
+    expect(agent.sessions["session-a"]).toBeUndefined();
+    expect(agent.sessions["session-b"]).toBeDefined();
+  });
+});

src/tests/authorization.test.ts

@@ -72,7 +72,7 @@ describe("authorization", () => {
     const initializeResponse = await agent.initialize({
       protocolVersion: 1,
       clientCapabilities: {
-        auth: { _meta: { gateway: true } },
+        auth: { terminal: true, _meta: { gateway: true } },
       } as any,
     });
     expect(initializeResponse.authMethods).toContainEqual(
@@ -130,7 +130,7 @@ describe("authorization", () => {
     );
   });
 
-  it("terminal auth still offered when --hide-claude-auth is set", async () => {
+  it("hide terminal auth even when terminal-auth is set", async () => {
     const [agent] = await createAgentMock();
     vi.stubGlobal("process", { ...process, argv: ["--hide-claude-auth"] });
 
@@ -140,9 +140,7 @@ describe("authorization", () => {
         _meta: { "terminal-auth": true },
       },
     });
-    expect(initializeResponse.authMethods).toContainEqual(
-      expect.objectContaining({ id: "claude-login" }),
-    );
+    expect(initializeResponse.authMethods).toStrictEqual([]);
   });
 
   it("show claude authentication", async () => {
@@ -150,7 +148,7 @@ describe("authorization", () => {
 
     const initializeResponse = await agent.initialize({
       protocolVersion: 1,
-      clientCapabilities: {},
+      clientCapabilities: { auth: { terminal: true } },
     });
 
     expect(initializeResponse.authMethods).toContainEqual(

src/tests/create-session-options.test.ts

@@ -102,7 +102,7 @@ describe("createSession options merging", () => {
     expect(capturedOptions!.disallowedTools).toContain("AskUserQuestion");
   });
 
-  it("includes both user and built-in disallowed tools when disableBuiltInTools is true", async () => {
+  it("sets tools to empty array when disableBuiltInTools is true", async () => {
     await agent.newSession({
       cwd: "/test",
       mcpServers: [],
@@ -116,15 +116,11 @@ describe("createSession options merging", () => {
       },
     });
 
-    const disallowed = capturedOptions!.disallowedTools!;
-    // User-provided
-    expect(disallowed).toContain("CustomTool");
-    // ACP internal
-    expect(disallowed).toContain("AskUserQuestion");
-    // Built-in tools disabled by disableBuiltInTools
-    expect(disallowed).toContain("Read");
-    expect(disallowed).toContain("Write");
-    expect(disallowed).toContain("Bash");
+    // disableBuiltInTools removes all built-in tools from context
+    expect(capturedOptions!.tools).toEqual([]);
+    // User-provided and ACP disallowedTools still apply
+    expect(capturedOptions!.disallowedTools).toContain("CustomTool");
+    expect(capturedOptions!.disallowedTools).toContain("AskUserQuestion");
   });
 
   it("merges user-provided hooks with ACP hooks", async () => {
@@ -199,6 +195,64 @@ describe("createSession options merging", () => {
     expect(capturedOptions?.env?.HOME).toBe("/custom/home");
   });
 
+  it("defaults tools to claude_code preset when not provided", async () => {
+    await agent.newSession({
+      cwd: "/test",
+      mcpServers: [],
+    });
+
+    expect(capturedOptions!.tools).toEqual({ type: "preset", preset: "claude_code" });
+  });
+
+  it("passes through user-provided tools string array", async () => {
+    await agent.newSession({
+      cwd: "/test",
+      mcpServers: [],
+      _meta: {
+        claudeCode: {
+          options: {
+            tools: ["Read", "Glob"],
+          },
+        },
+      },
+    });
+
+    expect(capturedOptions!.tools).toEqual(["Read", "Glob"]);
+  });
+
+  it("explicit tools array takes precedence over disableBuiltInTools", async () => {
+    await agent.newSession({
+      cwd: "/test",
+      mcpServers: [],
+      _meta: {
+        disableBuiltInTools: true,
+        claudeCode: {
+          options: {
+            tools: ["Read", "Glob"],
+          },
+        },
+      },
+    });
+
+    expect(capturedOptions!.tools).toEqual(["Read", "Glob"]);
+  });
+
+  it("passes through empty tools array to disable all built-in tools", async () => {
+    await agent.newSession({
+      cwd: "/test",
+      mcpServers: [],
+      _meta: {
+        claudeCode: {
+          options: {
+            tools: [],
+          },
+        },
+      },
+    });
+
+    expect(capturedOptions!.tools).toEqual([]);
+  });
+
   it("merges user-provided mcpServers with ACP mcpServers", async () => {
     await agent.newSession({
       cwd: "/test",

src/tests/session-config-options.test.ts

@@ -224,6 +224,61 @@ describe("session config options", () => {
       expect(configUpdate).toBeUndefined();
     });
 
+    it("resolves model alias 'opus' to full model ID", async () => {
+      const response = await agent.setSessionConfigOption({
+        sessionId: SESSION_ID,
+        configId: "model",
+        value: "opus",
+      });
+
+      expect(setModelSpy).toHaveBeenCalledWith("claude-opus-4-5");
+
+      const modelOption = response.configOptions.find((o) => o.id === "model");
+      expect(modelOption?.currentValue).toBe("claude-opus-4-5");
+    });
+
+    it("resolves model alias 'sonnet' to full model ID", async () => {
+      await agent.setSessionConfigOption({
+        sessionId: SESSION_ID,
+        configId: "model",
+        value: "sonnet",
+      });
+
+      expect(setModelSpy).toHaveBeenCalledWith("claude-sonnet-4-5");
+    });
+
+    it("resolves display name to model ID", async () => {
+      await agent.setSessionConfigOption({
+        sessionId: SESSION_ID,
+        configId: "model",
+        value: "Claude Sonnet",
+      });
+
+      expect(setModelSpy).toHaveBeenCalledWith("claude-sonnet-4-5");
+    });
+
+    it("still works with exact model ID", async () => {
+      const response = await agent.setSessionConfigOption({
+        sessionId: SESSION_ID,
+        configId: "model",
+        value: "claude-sonnet-4-5",
+      });
+
+      expect(setModelSpy).toHaveBeenCalledWith("claude-sonnet-4-5");
+      const modelOption = response.configOptions.find((o) => o.id === "model");
+      expect(modelOption?.currentValue).toBe("claude-sonnet-4-5");
+    });
+
+    it("throws for completely invalid model value", async () => {
+      await expect(
+        agent.setSessionConfigOption({
+          sessionId: SESSION_ID,
+          configId: "model",
+          value: "gpt-4",
+        }),
+      ).rejects.toThrow("Invalid value for config option model: gpt-4");
+    });
+
     it("returns full configOptions in the response", async () => {
       const response = await agent.setSessionConfigOption({
         sessionId: SESSION_ID,

src/tools.ts

@@ -5,6 +5,19 @@ import {
   ToolCallLocation,
   ToolKind,
 } from "@agentclientprotocol/sdk";
+import { HookCallback } from "@anthropic-ai/claude-agent-sdk";
+import {
+  AgentInput,
+  BashInput,
+  FileEditInput,
+  FileReadInput,
+  FileWriteInput,
+  GlobInput,
+  GrepInput,
+  TodoWriteInput,
+  WebFetchInput,
+  WebSearchInput,
+} from "@anthropic-ai/claude-agent-sdk/sdk-tools.js";
 import {
   ImageBlockParam,
   TextBlockParam,
@@ -14,29 +27,31 @@ import {
   WebSearchToolResultError,
 } from "@anthropic-ai/sdk/resources";
 import {
-  BetaBashCodeExecutionToolResultBlockParam,
   BetaBashCodeExecutionResultBlock,
+  BetaBashCodeExecutionToolResultBlockParam,
   BetaBashCodeExecutionToolResultError,
-  BetaCodeExecutionToolResultBlockParam,
   BetaCodeExecutionResultBlock,
+  BetaCodeExecutionToolResultBlockParam,
   BetaCodeExecutionToolResultError,
+  BetaImageBlockParam,
   BetaRequestMCPToolResultBlockParam,
-  BetaTextEditorCodeExecutionToolResultBlockParam,
-  BetaTextEditorCodeExecutionViewResultBlock,
   BetaTextEditorCodeExecutionCreateResultBlock,
   BetaTextEditorCodeExecutionStrReplaceResultBlock,
+  BetaTextEditorCodeExecutionToolResultBlockParam,
   BetaTextEditorCodeExecutionToolResultError,
+  BetaTextEditorCodeExecutionViewResultBlock,
+  BetaToolReferenceBlock,
   BetaToolResultBlockParam,
   BetaToolSearchToolResultBlockParam,
-  BetaToolReferenceBlock,
-  BetaToolSearchToolSearchResultBlock,
   BetaToolSearchToolResultError,
-  BetaWebFetchToolResultBlockParam,
+  BetaToolSearchToolSearchResultBlock,
   BetaWebFetchBlock,
+  BetaWebFetchToolResultBlockParam,
   BetaWebFetchToolResultErrorBlock,
   BetaWebSearchToolResultBlockParam,
-  BetaImageBlockParam,
 } from "@anthropic-ai/sdk/resources/beta.mjs";
+import path from "node:path";
+import { Logger } from "./acp-agent.js";
 
 /**
  * Union of all possible content types that can appear in tool results from the Anthropic SDK.
@@ -61,20 +76,6 @@ type ToolResultContent =
   | BetaTextEditorCodeExecutionCreateResultBlock
   | BetaTextEditorCodeExecutionStrReplaceResultBlock
   | BetaTextEditorCodeExecutionToolResultError;
-import { HookCallback } from "@anthropic-ai/claude-agent-sdk";
-import { Logger } from "./acp-agent.js";
-import {
-  AgentInput,
-  BashInput,
-  FileEditInput,
-  FileReadInput,
-  FileWriteInput,
-  GlobInput,
-  GrepInput,
-  TodoWriteInput,
-  WebFetchInput,
-  WebSearchInput,
-} from "@anthropic-ai/claude-agent-sdk/sdk-tools.js";
 
 interface ToolInfo {
   title: string;
@@ -103,13 +104,29 @@ interface ToolUpdate {
   };
 }
 
+/**
+ * Convert an absolute file path to a project-relative path for display.
+ * Returns the original path if it's outside the project directory or if no cwd is provided.
+ */
+export function toDisplayPath(filePath: string, cwd?: string): string {
+  if (!cwd) return filePath;
+  const resolvedCwd = path.resolve(cwd);
+  const resolvedFile = path.resolve(filePath);
+  if (resolvedFile.startsWith(resolvedCwd + path.sep) || resolvedFile === resolvedCwd) {
+    return path.relative(resolvedCwd, resolvedFile);
+  }
+  return filePath;
+}
+
 export function toolInfoFromToolUse(
   toolUse: any,
   supportsTerminalOutput: boolean = false,
+  cwd?: string,
 ): ToolInfo {
   const name = toolUse.name;
 
   switch (name) {
+    case "Agent":
     case "Task": {
       const input = toolUse.input as AgentInput | BashInput;
       return {
@@ -153,8 +170,9 @@ export function toolInfoFromToolUse(
       } else if (input.offset) {
         limit = " (from line " + input.offset + ")";
       }
+      const displayPath = input.file_path ? toDisplayPath(input.file_path, cwd) : "File";
       return {
-        title: "Read " + (input.file_path ?? "File") + limit,
+        title: "Read " + displayPath + limit,
         kind: "read",
         locations: input.file_path
           ? [
@@ -188,8 +206,9 @@ export function toolInfoFromToolUse(
           },
         ];
       }
+      const displayPath = input?.file_path ? toDisplayPath(input.file_path, cwd) : undefined;
       return {
-        title: input?.file_path ? `Write ${input.file_path}` : "Write",
+        title: displayPath ? `Write ${displayPath}` : "Write",
         kind: "edit",
         content,
         locations: input?.file_path ? [{ path: input.file_path }] : [],
@@ -209,8 +228,9 @@ export function toolInfoFromToolUse(
           },
         ];
       }
+      const displayPath = input?.file_path ? toDisplayPath(input.file_path, cwd) : undefined;
       return {
-        title: input?.file_path ? `Edit ${input.file_path}` : "Edit",
+        title: displayPath ? `Edit ${displayPath}` : "Edit",
         kind: "edit",
         content,
         locations: input?.file_path ? [{ path: input.file_path }] : [],