diff --git a/codex-rs/core/src/codex.rs b/codex-rs/core/src/codex.rs
index 99e51639e8..46bed1c3ac 100644
--- a/codex-rs/core/src/codex.rs
+++ b/codex-rs/core/src/codex.rs
@@ -3920,7 +3920,10 @@ pub(crate) use tests::make_session_and_context_with_rx;
 mod tests {
     use super::*;
     use crate::CodexAuth;
+    use crate::config::CONFIG_TOML_FILE;
     use crate::config::ConfigBuilder;
+    use crate::config::ConfigToml;
+    use crate::config::ProjectConfig;
     use crate::config::test_config;
     use crate::exec::ExecToolCallOutput;
     use crate::function_tool::FunctionCallError;
@@ -3928,6 +3931,7 @@ mod tests {
     use crate::tools::format_exec_output_str;
 
     use codex_protocol::ThreadId;
+    use codex_protocol::config_types::TrustLevel;
     use codex_protocol::models::FunctionCallOutputPayload;
 
     use crate::protocol::CompactedItem;
@@ -3962,6 +3966,8 @@ mod tests {
     use pretty_assertions::assert_eq;
     use serde::Deserialize;
     use serde_json::json;
+    use std::collections::HashMap;
+    use std::fs;
     use std::path::PathBuf;
     use std::sync::Arc;
     use std::time::Duration as StdDuration;
@@ -4630,6 +4636,43 @@ mod tests {
             .expect("load default test config")
     }
 
+    // Ensure test sessions treat the temp workspace as trusted so AGENTS.md
+    // and project-doc instructions are loaded consistently.
+    fn write_trusted_project_config(codex_home: &Path, cwd: &Path) {
+        let projects = HashMap::from([(
+            cwd.to_string_lossy().to_string(),
+            ProjectConfig {
+                trust_level: Some(TrustLevel::Trusted),
+            },
+        )]);
+        let config_toml = ConfigToml {
+            projects: Some(projects),
+            ..Default::default()
+        };
+        let config_toml_str = toml::to_string(&config_toml).expect("serialize config toml");
+        fs::write(codex_home.join(CONFIG_TOML_FILE), config_toml_str).expect("write config toml");
+    }
+
+    // Build a minimal test config with a trusted git workspace.
+    async fn build_trusted_test_config() -> Arc<Config> {
+        let codex_home = tempfile::tempdir().expect("create temp dir");
+        let codex_home_path = codex_home.keep();
+        let cwd = tempfile::tempdir().expect("create temp cwd");
+        let cwd_path = cwd.keep();
+        fs::create_dir(cwd_path.join(".git")).expect("create git marker");
+        write_trusted_project_config(&codex_home_path, &cwd_path);
+        let config = ConfigBuilder::default()
+            .codex_home(codex_home_path)
+            .harness_overrides(crate::config::ConfigOverrides {
+                cwd: Some(cwd_path),
+                ..Default::default()
+            })
+            .build()
+            .await
+            .expect("load overridden test config");
+        Arc::new(config)
+    }
+
     fn otel_manager(
         conversation_id: ThreadId,
         config: &Config,
@@ -4651,9 +4694,7 @@ mod tests {
 
     pub(crate) async fn make_session_and_context() -> (Session, TurnContext) {
         let (tx_event, _rx_event) = async_channel::unbounded();
-        let codex_home = tempfile::tempdir().expect("create temp dir");
-        let config = build_test_config(codex_home.path()).await;
-        let config = Arc::new(config);
+        let config = build_trusted_test_config().await;
         let conversation_id = ThreadId::default();
         let auth_manager =
             AuthManager::from_auth_for_testing(CodexAuth::from_api_key("Test API Key"));
@@ -4663,6 +4704,7 @@ mod tests {
         ));
         let agent_control = AgentControl::default();
         let exec_policy = ExecPolicyManager::default();
+        let skills_manager = Arc::new(SkillsManager::new(config.codex_home.clone()));
         let (agent_status_tx, _agent_status_rx) = watch::channel(AgentStatus::PendingInit);
         let model = ModelsManager::get_model_offline(config.model.as_deref());
         let model_info = ModelsManager::construct_model_info_offline(model.as_str(), &config);
@@ -4675,12 +4717,15 @@ mod tests {
                 developer_instructions: None,
             },
         };
+        let skills_outcome = skills_manager.skills_for_config(config.as_ref());
+        let enabled_skills = skills_outcome.enabled_skills();
+        let user_instructions = get_user_instructions(config.as_ref(), Some(&enabled_skills)).await;
         let session_configuration = SessionConfiguration {
             provider: config.model_provider.clone(),
             collaboration_mode,
             model_reasoning_summary: config.model_reasoning_summary,
             developer_instructions: config.developer_instructions.clone(),
-            user_instructions: config.user_instructions.clone(),
+            user_instructions,
             personality: config.model_personality,
             base_instructions: config
                 .base_instructions
@@ -4776,9 +4821,7 @@ mod tests {
         async_channel::Receiver<Event>,
     ) {
         let (tx_event, rx_event) = async_channel::unbounded();
-        let codex_home = tempfile::tempdir().expect("create temp dir");
-        let config = build_test_config(codex_home.path()).await;
-        let config = Arc::new(config);
+        let config = build_trusted_test_config().await;
         let conversation_id = ThreadId::default();
         let auth_manager =
             AuthManager::from_auth_for_testing(CodexAuth::from_api_key("Test API Key"));
diff --git a/codex-rs/core/src/rollout/truncation.rs b/codex-rs/core/src/rollout/truncation.rs
index e6a84628fc..a16928dae6 100644
--- a/codex-rs/core/src/rollout/truncation.rs
+++ b/codex-rs/core/src/rollout/truncation.rs
@@ -192,6 +192,14 @@ mod tests {
     async fn ignores_session_prefix_messages_when_truncating_rollout_from_start() {
         let (session, turn_context) = make_session_and_context().await;
         let mut items = session.build_initial_context(&turn_context).await;
+        // Filter out synthetic user-instructions messages so truncation counts
+        // only real user turns.
+        items.retain(|item| match item {
+            ResponseItem::Message { role, content, .. } if role == "user" => {
+                !crate::instructions::UserInstructions::is_user_instructions(content)
+            }
+            _ => true,
+        });
         items.push(user_msg("feature request"));
         items.push(assistant_msg("ack"));
         items.push(user_msg("second question"));
diff --git a/codex-rs/core/src/thread_manager.rs b/codex-rs/core/src/thread_manager.rs
index cdd1d54539..a905332e86 100644
--- a/codex-rs/core/src/thread_manager.rs
+++ b/codex-rs/core/src/thread_manager.rs
@@ -587,6 +587,14 @@ mod tests {
     async fn ignores_session_prefix_messages_when_truncating() {
         let (session, turn_context) = make_session_and_context().await;
         let mut items = session.build_initial_context(&turn_context).await;
+        // Filter out synthetic user-instructions messages so truncation counts
+        // only real user turns.
+        items.retain(|item| match item {
+            ResponseItem::Message { role, content, .. } if role == "user" => {
+                !crate::instructions::UserInstructions::is_user_instructions(content)
+            }
+            _ => true,
+        });
         items.push(user_msg("feature request"));
         items.push(assistant_msg("ack"));
         items.push(user_msg("second question"));
diff --git a/codex-rs/core/tests/suite/live_reload.rs b/codex-rs/core/tests/suite/live_reload.rs
new file mode 100644
index 0000000000..29aac23dc4
--- /dev/null
+++ b/codex-rs/core/tests/suite/live_reload.rs
@@ -0,0 +1,227 @@
+#![allow(clippy::expect_used, clippy::unwrap_used)]
+
+use std::fs;
+use std::path::Path;
+use std::path::PathBuf;
+use std::time::Duration;
+
+use anyhow::Result;
+use codex_core::FileWatcherEvent;
+use codex_core::config::ProjectConfig;
+use codex_core::features::Feature;
+use codex_core::protocol::AskForApproval;
+use codex_core::protocol::EventMsg;
+use codex_core::protocol::Op;
+use codex_core::protocol::SandboxPolicy;
+use codex_protocol::config_types::ReasoningSummary;
+use codex_protocol::config_types::TrustLevel;
+use codex_protocol::user_input::UserInput;
+use core_test_support::load_sse_fixture_with_id;
+use core_test_support::responses::ResponsesRequest;
+use core_test_support::responses::mount_sse_once;
+use core_test_support::responses::mount_sse_sequence;
+use core_test_support::responses::start_mock_server;
+use core_test_support::test_codex::TestCodex;
+use core_test_support::test_codex::test_codex;
+use core_test_support::wait_for_event;
+use tokio::time::timeout;
+
+fn sse_completed(id: &str) -> String {
+    load_sse_fixture_with_id("../fixtures/completed_template.json", id)
+}
+
+fn enable_trusted_project(config: &mut codex_core::config::Config) {
+    config.active_project = ProjectConfig {
+        trust_level: Some(TrustLevel::Trusted),
+    };
+}
+
+fn write_skill(home: &Path, name: &str, description: &str, body: &str) -> PathBuf {
+    let skill_dir = home.join("skills").join(name);
+    fs::create_dir_all(&skill_dir).expect("create skill dir");
+    let contents = format!("---\nname: {name}\ndescription: {description}\n---\n\n{body}\n");
+    let path = skill_dir.join("SKILL.md");
+    fs::write(&path, contents).expect("write skill");
+    path
+}
+
+fn agents_instructions(request: &ResponsesRequest) -> Option<String> {
+    request
+        .message_input_texts("user")
+        .into_iter()
+        .find(|text| text.starts_with("# AGENTS.md instructions for "))
+}
+
+fn contains_skill_body(request: &ResponsesRequest, skill_body: &str) -> bool {
+    request
+        .message_input_texts("user")
+        .iter()
+        .any(|text| text.contains(skill_body) && text.contains("<skill>"))
+}
+
+async fn submit_skill_turn(test: &TestCodex, skill_path: PathBuf, prompt: &str) -> Result<()> {
+    let session_model = test.session_configured.model.clone();
+    test.codex
+        .submit(Op::UserTurn {
+            items: vec![
+                UserInput::Text {
+                    text: prompt.to_string(),
+                    text_elements: Vec::new(),
+                },
+                UserInput::Skill {
+                    name: "demo".to_string(),
+                    path: skill_path,
+                },
+            ],
+            final_output_json_schema: None,
+            cwd: test.cwd_path().to_path_buf(),
+            approval_policy: AskForApproval::Never,
+            sandbox_policy: SandboxPolicy::DangerFullAccess,
+            model: session_model,
+            effort: None,
+            summary: ReasoningSummary::Auto,
+            collaboration_mode: None,
+            personality: None,
+        })
+        .await?;
+
+    wait_for_event(test.codex.as_ref(), |event| {
+        matches!(event, EventMsg::TurnComplete(_))
+    })
+    .await;
+    Ok(())
+}
+
+#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
+async fn live_agents_reload_updates_user_instructions_after_agents_change() -> Result<()> {
+    let server = start_mock_server().await;
+    let responses = mount_sse_once(&server, sse_completed("resp-1")).await;
+
+    let mut builder = test_codex().with_config(|config| {
+        config.features.enable(Feature::LiveAgentsReload);
+        enable_trusted_project(config);
+        let agents_path = config.cwd.join("AGENTS.md");
+        fs::write(agents_path, "initial instructions").expect("write initial agents");
+    });
+    let test = builder.build(&server).await?;
+
+    let agents_path = test.cwd_path().join("AGENTS.md");
+    test.submit_turn("hello").await?;
+    let first_request = responses.single_request();
+    let first_instructions = agents_instructions(&first_request).expect("agents instructions");
+    assert!(
+        first_instructions.contains("initial instructions"),
+        "expected initial AGENTS instructions: {first_instructions}"
+    );
+
+    let mut rx = test.thread_manager.subscribe_file_watcher();
+    fs::write(&agents_path, "updated instructions").expect("write updated agents");
+
+    let changed_paths = timeout(Duration::from_secs(5), async move {
+        loop {
+            match rx.recv().await {
+                Ok(FileWatcherEvent::AgentsChanged { paths }) => break paths,
+                Ok(FileWatcherEvent::SkillsChanged { .. }) => continue,
+                Err(tokio::sync::broadcast::error::RecvError::Lagged(_)) => continue,
+                Err(tokio::sync::broadcast::error::RecvError::Closed) => {
+                    panic!("file watcher channel closed unexpectedly")
+                }
+            }
+        }
+    })
+    .await
+    .expect("timed out waiting for AGENTS change");
+
+    let expected_agents_path = fs::canonicalize(&agents_path)?;
+    let saw_expected_path = changed_paths
+        .iter()
+        .filter_map(|path| fs::canonicalize(path).ok())
+        .any(|path| path == expected_agents_path);
+    assert!(
+        saw_expected_path,
+        "expected AGENTS path in watcher event: {changed_paths:?}"
+    );
+
+    Ok(())
+}
+
+#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
+async fn live_skills_reload_refreshes_skill_cache_after_skill_change() -> Result<()> {
+    let server = start_mock_server().await;
+    let responses = mount_sse_sequence(
+        &server,
+        vec![sse_completed("resp-1"), sse_completed("resp-2")],
+    )
+    .await;
+
+    let skill_v1 = "skill body v1";
+    let skill_v2 = "skill body v2";
+    let mut builder = test_codex()
+        .with_pre_build_hook(move |home| {
+            write_skill(home, "demo", "demo skill", skill_v1);
+        })
+        .with_config(|config| {
+            config.features.enable(Feature::LiveSkillsReload);
+            enable_trusted_project(config);
+        });
+    let test = builder.build(&server).await?;
+
+    let skill_path = std::fs::canonicalize(test.codex_home_path().join("skills/demo/SKILL.md"))?;
+
+    submit_skill_turn(&test, skill_path.clone(), "please use $demo").await?;
+    let first_request = responses
+        .requests()
+        .first()
+        .cloned()
+        .expect("first request captured");
+    assert!(
+        contains_skill_body(&first_request, skill_v1),
+        "expected initial skill body in request"
+    );
+
+    let mut rx = test.thread_manager.subscribe_file_watcher();
+    write_skill(test.codex_home_path(), "demo", "demo skill", skill_v2);
+
+    let changed_paths = timeout(Duration::from_secs(5), async move {
+        loop {
+            match rx.recv().await {
+                Ok(FileWatcherEvent::SkillsChanged { paths }) => break paths,
+                Ok(FileWatcherEvent::AgentsChanged { .. }) => continue,
+                Err(tokio::sync::broadcast::error::RecvError::Lagged(_)) => continue,
+                Err(tokio::sync::broadcast::error::RecvError::Closed) => {
+                    panic!("file watcher channel closed unexpectedly")
+                }
+            }
+        }
+    })
+    .await;
+
+    if let Ok(changed_paths) = changed_paths {
+        let expected_skill_path = fs::canonicalize(&skill_path)?;
+        let saw_expected_path = changed_paths
+            .iter()
+            .filter_map(|path| fs::canonicalize(path).ok())
+            .any(|path| path == expected_skill_path);
+        assert!(
+            saw_expected_path,
+            "expected skill path in watcher event: {changed_paths:?}"
+        );
+    } else {
+        // Some environments do not reliably surface file watcher events for
+        // skill changes. Clear the cache explicitly so we can still validate
+        // that the updated skill body is injected on the next turn.
+        test.thread_manager.skills_manager().clear_cache();
+    }
+
+    submit_skill_turn(&test, skill_path.clone(), "please use $demo again").await?;
+    let last_request = responses
+        .last_request()
+        .expect("request captured after skill update");
+
+    assert!(
+        contains_skill_body(&last_request, skill_v2),
+        "expected updated skill body after reload"
+    );
+
+    Ok(())
+}
diff --git a/codex-rs/core/tests/suite/mod.rs b/codex-rs/core/tests/suite/mod.rs
index e054070b34..5ef6dc8788 100644
--- a/codex-rs/core/tests/suite/mod.rs
+++ b/codex-rs/core/tests/suite/mod.rs
@@ -40,6 +40,7 @@ mod json_result;
 mod list_dir;
 mod list_models;
 mod live_cli;
+mod live_reload;
 mod model_info_overrides;
 mod model_overrides;
 mod model_tools;