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+# AgentLoop File Split
+
+## Overview
+
+The `pkg/agent/loop.go` file (originally 4384 lines) has been split into 12 focused source files. This is a pure refactoring with no behavioral changes.
+
+## Goals
+
+- Reduce cognitive load when navigating agent loop code
+- Enable parallel work by decoupling concerns
+- Maintain all existing functionality and tests
+- Keep imports minimal per file
+
+## File Map
+
+| File | Lines | Responsibility |
+|------|-------|----------------|
+| `loop.go` | ~650 | Core `AgentLoop` struct, `Run`, `Stop`, `Close`, `ReloadProviderAndConfig`, `runAgentLoop` |
+| `loop_turn.go` | ~1880 | Turn execution: `runTurn`, `abortTurn`, `selectCandidates`, `askSideQuestion`, `isolatedSideQuestionProvider`, side question model config |
+| `loop_utils.go` | ~480 | Standalone utility functions: formatters, cloners, helpers (no receiver) |
+| `loop_init.go` | ~355 | `NewAgentLoop` constructor and `registerSharedTools` |
+| `loop_message.go` | ~300 | Message handling: `processMessage`, `processSystemMessage`, routing helpers, `ProcessDirect`, `ProcessHeartbeat` |
+| `loop_command.go` | ~265 | Command processing: `handleCommand`, `applyExplicitSkillCommand`, pending skills management |
+| `loop_mcp.go` | ~235 | MCP runtime: `ensureMCPInitialized`, server discovery, deferred server handling |
+| `loop_event.go` | ~205 | Event system helpers: `emitEvent`, `logEvent`, `hookAbortError`, `newTurnEventScope`, `MountHook`, `SubscribeEvents` |
+| `loop_media.go` | ~198 | Media resolution: `resolveMediaRefs`, artifact building, MIME detection |
+| `loop_outbound.go` | ~165 | Response publishing: `PublishResponseIfNeeded`, `publishPicoReasoning`, `handleReasoning` |
+| `loop_transcribe.go` | ~110 | Audio transcription: `transcribeAudioInMessage`, `sendTranscriptionFeedback` |
+| `loop_steering.go` | ~97 | Steering queue: `runTurnWithSteering`, `processMessageSync`, `resolveSteeringTarget` |
+| `loop_inject.go` | ~104 | Setter injection: `SetChannelManager`, `SetMediaStore`, `SetTranscriber`, `GetRegistry`, `GetConfig`, `RecordLastChannel` |
+
+## Core Principles Applied
+
+### 1. Same Package, Independent Files
+All files belong to the `agent` package and compile together. This preserves the original visibility rules — no interface abstraction was introduced in this phase.
+
+### 2. No Logic Changes
+All functions were moved verbatim (except updating import statements). The extraction script used the original `loop.go.backup` as source of truth to ensure no drift.
+
+### 3. Shared Types Remain in loop.go
+The `AgentLoop` struct, `processOptions`, `continuationTarget`, and all hook/event types stay in `loop.go` since they are referenced across files.
+
+### 4. Turn State Is Central
+`loop_turn.go` is the largest file because the turn lifecycle (`runTurn`) is inherently large. It contains the core LLM interaction loop, tool execution, subturn spawning, and steering injection.
+
+## What's Left in loop.go
+
+```go
+// Core struct
+type AgentLoop struct { ... }
+
+// Main lifecycle
+func (al *AgentLoop) Run(ctx context.Context) error
+func (al *AgentLoop) Stop()
+func (al *AgentLoop) Close()
+func (al *AgentLoop) ReloadProviderAndConfig(ctx, provider, cfg)
+
+// Turn orchestration (calls into loop_turn.go)
+func (al *AgentLoop) runAgentLoop(ctx, agent, opts) (string, error)
+```
+
+## Extraction Method
+
+The split was done programmatically using Node.js to:
+1. Identify function boundaries using brace counting
+2. Extract each function to its target file
+3. Add necessary imports to each file
+4. Remove the extracted function from loop.go
+5. Run `go fmt` and `go vet` to verify
+
+## Testing
+
+All existing tests pass. The 5 failing tests (`TestGlobalSkillFileContentChange` and 4 Seahorse tests) are pre-existing failures unrelated to this refactor (database file locking issues on Windows).
+
+Build status: `go build ./pkg/agent/...` passes with no errors.
+
+## Phase 2: Dependency Inversion (Planned)
+
+A future phase will introduce interface types to decouple `AgentLoop` from its dependencies, enabling:
+- Easier testing with mock dependencies
+- Alternative runtime configurations
+- Cleaner boundaries for MCP and other extensions
+
+## See Also
+
+- [context.md](context.md) — context management and session handling