diff --git a/.github/release-notes-template.md b/.github/release-notes-template.md
index 8d27503..358ed2d 100644
--- a/.github/release-notes-template.md
+++ b/.github/release-notes-template.md
@@ -2,7 +2,7 @@
 
 ## Highlights
 
-- Standardized release packaging across all supported surfaces.
+- Uniformed template generation
 - See attached assets below for install-ready downloads.
 
 ## Release Assets
diff --git a/bindery-core/src/templates.ts b/bindery-core/src/templates.ts
index 56d2aef..28fdd27 100644
--- a/bindery-core/src/templates.ts
+++ b/bindery-core/src/templates.ts
@@ -64,11 +64,11 @@ const TEMPLATES: Record<string, TemplateModule> = {
 // Bump per-file version inside the matching module's `meta` when content
 // changes significantly so users with outdated content are prompted.
 
-export const FILE_VERSION_INFO: Record<string, { version: number; label: string; zip: string | null }> =
+export const FILE_VERSION_INFO: Record<string, { version: number; label: string; }> =
     Object.fromEntries(
         Object.values(TEMPLATES).map(t => [
             t.meta.file,
-            { version: t.meta.version, label: t.meta.label, zip: t.meta.zip },
+            { version: t.meta.version, label: t.meta.label },
         ]),
     );
 
diff --git a/bindery-core/src/templates/agentRender.ts b/bindery-core/src/templates/agentRender.ts
new file mode 100644
index 0000000..416a1ef
--- /dev/null
+++ b/bindery-core/src/templates/agentRender.ts
@@ -0,0 +1,23 @@
+import type { TemplateContext, AgentTemplate } from './context';
+import { pushCapabilitiesSource, pushProjectSection, pushSessionStart, pushMemorySystem, pushRepoLayout, pushWritingRules } from './building-blocks';
+
+export type TopLevelTarget = 'claude' | 'copilot' | 'cursor' | 'agents';
+
+export function renderAgentTemplate(ctx: TemplateContext, agent: AgentTemplate): string {
+    const lines: string[] = [
+        `# ${agent.name} — ${ctx.title}`,
+        '',
+    ];
+    pushProjectSection(lines, ctx);
+    lines.push('');
+    pushSessionStart(lines, ctx, agent);
+    lines.push('');
+    pushMemorySystem(lines, agent);
+    lines.push('');
+    pushRepoLayout(lines, ctx);
+    lines.push('');
+    pushWritingRules(lines, ctx);
+    lines.push('');
+    pushCapabilitiesSource(lines);
+    return lines.filter(l => l !== '\n').join('\n') + '\n';
+};
\ No newline at end of file
diff --git a/bindery-core/src/templates/agents.ts b/bindery-core/src/templates/agents.ts
index fc46595..f93d5ff 100644
--- a/bindery-core/src/templates/agents.ts
+++ b/bindery-core/src/templates/agents.ts
@@ -1,59 +1,12 @@
-import { audienceNote, languageSection, type TemplateContext, type TemplateMeta } from './context';
+import { type TemplateContext, type TemplateMeta } from './context';
+import { renderAgentTemplate } from './agentRender';
 
 export const meta: TemplateMeta = {
     file:    'AGENTS.md',
-    version: 11,
-    label:   'agents instructions',
-    zip:     null,
+    version: 13,
+    label:   'agent instructions',
 };
 
 export function render(ctx: TemplateContext): string {
-    const { title, author, description, genre, storyFolder, notesFolder, arcFolder, charactersFolder, sessionFile, preferencesFile, arcGranularity, memoriesFolder } = ctx;
-    const lines: string[] = [`# Agent Instructions — ${title}`, ''];
-    lines.push('## Project overview');
-    if (genre)       { lines.push(`${genre} novel.`); }
-    if (description) { lines.push(description); }
-    if (ctx.audience){ lines.push(audienceNote(ctx)); }
-    if (author)      { lines.push(`Author: ${author}.`); }
-    lines.push(
-        languageSection(ctx),
-        '',
-        '## Start of session',
-        `1. Read \`${sessionFile}\` for current focus and handoff notes (via \`session_focus_get\`), and \`${preferencesFile}\` for the author's durable working preferences.`,
-        `2. Read \`${memoriesFolder}/global.md\` for cross-chapter context.`,
-        `3. If working on a specific chapter, read \`${memoriesFolder}/chXX.md\` if it exists.`,
-        '4. Check `.claude/skills/` for shared slash workflows before improvising a bespoke process.',
-        '',
-        '## Story files',
-        `- Chapter files are \`.md\` files in \`${storyFolder}/\`, organized in act subfolders.`,
-        `- Arc files live in \`${arcFolder}/\`; default planning granularity is \`${arcGranularity}\`. Treat these as story architecture.`,
-        `- Character profiles live in \`${charactersFolder}/\`; use one profile per character plus the index.`,
-        '- HTML comments `<!-- -->` are writer notes — treat as context only, not prose.',
-        '- Quotation marks and em-dashes are managed by the Bindery extension. Do not normalize them.',
-        '',
-        '## Shared skill workflows',
-        '- Shared workflows live in `.claude/skills/` and can be used by agents beyond Claude when the runtime supports workspace skills.',
-        '- Prefer `/read-in`, `/review`, `/translation-review`, `/translate`, `/memory`, `/continuity`, `/status`, `/read-aloud`, `/proof-read`, `/plan-beats`, and `/character-setup` when the user is asking for one of those structured tasks.',
-        '- Use `arc_*` tools for story structure, `character_*` tools for cast profiles, `note_*` tools for story notes, `memory_*` tools for session decisions, `chapter_status_*` tools for progress, and `session_focus_*` tools for current working state. PREFERENCES.md is user-owned — propose changes rather than writing it.',
-        '- Send rough, unsorted, or pasted material to `Notes/Inbox.md`, then triage with `inbox_process` (propose destinations) and `inbox_resolve` (clear routed items) — do not dump it into memory.',
-        '',
-        '## Writing guidelines',
-        '- Do not rewrite paragraphs unless explicitly asked. Suggest edits only.',
-    );
-    if (ctx.audience) {
-        lines.push(`- Audience is ${ctx.audience}. Keep vocabulary clear and themes age-appropriate.`);
-    }
-    lines.push(
-        '',
-        '## Key reference files',
-        '| File | Contains |',
-        '|---|---|',
-        `| \`${arcFolder}/\` | Story arc files for overall and per-act structure and beats |`,
-        `| \`${charactersFolder}/\` | Character index and one profile per character |`,
-        `| \`${notesFolder}/\` | Story notes, like world rules, scene ideas, inbox, and research |`,
-        `| \`${sessionFile}\` | Ephemeral working state: current focus, next actions, open questions, handoff (via \`session_focus_*\`) |`,
-        `| \`${preferencesFile}\` | Durable working preferences; user-owned, never tool-written |`,
-        `| \`${memoriesFolder}/global.md\` | Cross-session decisions |`,
-    );
-    return lines.join('\n') + '\n';
+    return renderAgentTemplate(ctx, { hasSkills: true, requiresSkillUpload: false, name: 'Agent Instructions' });
 }
diff --git a/bindery-core/src/templates/bindery-readme.ts b/bindery-core/src/templates/bindery-readme.ts
index 410ff08..97bd245 100644
--- a/bindery-core/src/templates/bindery-readme.ts
+++ b/bindery-core/src/templates/bindery-readme.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.bindery/README.md',
     version: 10,
     label:   'bindery capabilities',
-    zip:     null,
 };
 
 export function render(ctx: TemplateContext): string {
@@ -27,7 +26,7 @@ may fetch it for context; otherwise, treat this file as the complete answer.
 Bindery is a markdown book authoring toolkit with three surfaces:
 
 1. **VS Code / Obsidian extension** — commands, format-on-save, export to DOCX/EPUB/PDF.
-2. **MCP server** — programmatic tools for AI assistants (Claude, Copilot, Codex, Cursor).
+2. **MCP server** — programmatic tools for AI assistants (Claude, Copilot, ChatGPT, Cursor).
 3. **Skill workflows** — opinionated slash-commands like \`/review\`, \`/translate\`, \`/memory\`.
 
 All three operate on the same workspace state: \`.bindery/settings.json\`,
@@ -121,7 +120,7 @@ tagged **(writes)** modify files or git state.
 ### Tool Workflow Shortcuts
 
 - Use \`init_workspace\` first for a new book. It creates the settings, translation file, generated capability README, and the default authoring scaffold.
-- Use \`setup_ai_files\` after init or when \`health\` reports outdated AI files. It refreshes CLAUDE.md, Copilot instructions, Cursor rules, AGENTS.md, Claude skills, and this capability README.
+- Use \`setup_ai_files\` after init or when \`health\` reports outdated AI files. It refreshes CLAUDE.md, Copilot instructions, Cursor rules, AGENTS.md, generated skills, and this capability README.
 - Use \`arc_*\` for story architecture under \`${arcFolder}/\`.
 - Use \`character_*\` for cast profiles under \`${charactersFolder}/\`.
 - Use \`note_*\` for canonical story notes under \`${notesFolder}/\`.
@@ -156,7 +155,7 @@ work-in-progress and continue on another machine.
 
 ## Skill workflows (Claude / Copilot Chat / etc.)
 
-Generated under \`.claude/skills/<name>/SKILL.md\`. Trigger them with a slash
+Generated under \`.claude/skills/<name>/SKILL.md\` and/or \`.agents/skills/<name>/SKILL.md\` depending on selected targets. Trigger them with a slash
 command or by paraphrasing the description.
 
 | Skill | Trigger phrases |
diff --git a/bindery-core/src/templates/building-blocks.ts b/bindery-core/src/templates/building-blocks.ts
new file mode 100644
index 0000000..551465b
--- /dev/null
+++ b/bindery-core/src/templates/building-blocks.ts
@@ -0,0 +1,97 @@
+import { type TemplateContext, type AgentTemplate } from './context';
+
+/**
+ * Shared project-intent section used by top-level AI instruction templates.
+ */
+export function pushProjectSection(lines: string[], ctx: TemplateContext): void {
+    lines.push('## Project');
+    if (ctx.genre) {lines.push(`Genre: ${ctx.genre}`); }
+    if (ctx.description) { lines.push(ctx.description); }
+    if (ctx.audience) { lines.push(`Target audience: ${ctx.audience}.`); }
+    if (ctx.author) { lines.push(`Author: ${ctx.author}.`); }
+    if (ctx.hasMultiLang) { lines.push(`Languages: ${ctx.langList}`); }
+}
+
+/**
+ * Canonical capabilities pointer shared by all top-level AI instruction files.
+ */
+export function pushCapabilitiesSource(lines: string[]): void {
+    lines.push(
+        '## Capabilities source',
+        '- Use `.bindery/README.md` if you require the canonical source for Bindery capabilities and workflows.',
+    );
+}
+
+/**
+ * Shared session-start instructions used by top-level AI instruction templates.
+ */
+export function pushSessionStart(lines: string[], ctx: TemplateContext, agent: AgentTemplate): void {
+    lines.push(
+        '## Start of session',
+        '1. Run `health` from the Bindery MCP and check `ai_versions_outdated`.',
+        '2. If `ai_versions_outdated` has entries, run `setup_ai_files`.' + (agent.requiresSkillUpload ? ' If `skill_files.reupload_required` has entries, ask the user to re-upload those SKILL.md files to use them.' : ''),
+    );
+    if (agent.hasSkills) {
+    lines.push(
+        '3. Use /read-in at the start of a session to load context and get your bearings.',
+        `4. If the skill is not available, read at least ${ctx.sessionFile} (if present, use \`session_focus_get\`) for current focus and handoff context, and ${ctx.preferencesFile} for the author's durable working preferences.`,
+    );
+    } else { 
+    lines.push(
+        `3. Read ${ctx.sessionFile} (if present) for current focus and handoff context, and ${ctx.preferencesFile} for the author's durable working preferences.`,
+        `4. If ${ctx.sessionFile} mentions a chapter, \`get_chapter(chapterNumber)\` to read that chapter and \`memory_list\` to check for any chapter-specific memory files.`,
+    );
+    }
+}
+
+/**
+ * Shared memory-system instructions used by top-level AI instruction templates.
+ */
+export function pushMemorySystem(lines: string[], agent: AgentTemplate): void {
+    lines.push('## Memory system');
+
+    if (agent.hasSkills) {
+        lines.push(
+            `1. When concluding a discussion, or after you give a meaningful, preservation-worthy response: use /memory to store it.`,
+            `2. Also when the user asks or otherwise indicates the end of a session: use /memory to save decisions.`,
+        );
+    } else {
+        lines.push(
+            `1. When concluding a discussion, or after you give a meaningful, preservation-worthy response: use \`memory_append\` to store it.`,
+            `2. Also when the user asks or otherwise indicates the end of a session: use \`memory_append\` to save decisions.`,
+            `3. If a memory file grows too large, use \`memory_compact\` to condense it.`,
+        );
+    }  
+}
+
+export function pushRepoLayout(lines: string[], ctx: TemplateContext): void {
+    lines.push(
+        '## Repository layout',              
+        '```',
+        `${ctx.arcFolder}/  ← story architecture (${ctx.arcGranularity}-level arc planning by default)`,
+        '  index.md  ← arc map',
+        '  Overall.md  ← whole-book arc',
+        '  Acts/  ← act-level arc files',
+        `${ctx.notesFolder}/  ← story notes`,
+        `${ctx.charactersFolder}/  ← character index and one profile per character`,
+        `${ctx.sessionFile}  ← ephemeral working state (current focus / next actions / open questions / handoff) via session_focus_*`,
+        `${ctx.preferencesFile}  ← durable working preferences ("do it like this for me"); user-owned, never tool-written`,
+        `${ctx.storyFolder}/`,
+        ...ctx.languages.map(l => `  ${l.folderName}/  ← ${l.code} chapters (one .md per chapter)`),
+        '```',
+    );
+}
+
+export function pushWritingRules(lines: string[], ctx: TemplateContext): void {
+    lines.push(
+        '## Writing rules',        
+        `- If these rules conflict with the author's preferences in ${ctx.preferencesFile}, follow the preferences.`,
+        '- Prefer usage of the Bindery MCP tools over direct file access.',
+        '- Never rewrite paragraphs unless explicitly asked. Suggest edits only.',
+        '- HTML comments `<!-- -->` in chapter files are writer notes. Treat as context, not prose.',
+        '- Quotation marks and dashes in chapter files are managed by the Bindery extension. Do not flag these as formatting errors.',
+    );
+    if (ctx.audience) {
+        lines.push(`- Content is aimed at ${ctx.audience}. Keep language accessible and themes age-appropriate.`);
+    }
+}
\ No newline at end of file
diff --git a/bindery-core/src/templates/claude.ts b/bindery-core/src/templates/claude.ts
index 66ee2b3..78d03d0 100644
--- a/bindery-core/src/templates/claude.ts
+++ b/bindery-core/src/templates/claude.ts
@@ -1,121 +1,12 @@
-import { audienceNote, languageSection, type TemplateContext, type TemplateMeta } from './context';
+import { type TemplateContext, type TemplateMeta } from './context';
+import { renderAgentTemplate } from './agentRender';
 
 export const meta: TemplateMeta = {
     file:    'CLAUDE.md',
-    version: 17,
+    version: 18,
     label:   'project instructions',
-    zip:     null,
 };
 
 export function render(ctx: TemplateContext): string {
-    const { title, author, description, genre, storyFolder, notesFolder, arcFolder, charactersFolder, sessionFile, preferencesFile, arcGranularity } = ctx;
-    const lines: string[] = [
-        `# Claude — ${title}`,
-        '',
-        '## Project',
-    ];
-    if (genre)       { lines.push(`Genre: ${genre}.`); }
-    if (description) { lines.push(description); }
-    if (ctx.audience){ lines.push(audienceNote(ctx)); }
-    if (author)      { lines.push(`Author: ${author}.`); }
-    lines.push(
-        languageSection(ctx),
-        '## Start of session',
-        '1. Use /read-in at the start of a session to load context and get your bearings.',
-        '2. Run `health` from the Bindery MCP and check `ai_versions_outdated`.',
-        '3. If `ai_versions_outdated` has entries, run `setup_ai_files`; if `skill_files.reupload_required` has entries, ask the user to re-upload those SKILL.md files in Claude Desktop Skills (no zip needed).',
-        `4. If the skill or MCP server is not available, read at least ${sessionFile} (if present) for current focus and handoff context, and ${preferencesFile} for the author's durable working preferences.`,
-        '',
-        '## Memory system',
-        '1. When concluding a discussion, or after you give a meaningful, preservation-worthy response: use /memory to store it.',
-        '2. Also when the user asks or otherwise indicates the end of a session: use /memory to save decisions.',
-        '',
-        '## Repo layout',
-        '```',
-        `${arcFolder}/  ← story architecture (${arcGranularity}-level arc planning by default)`,
-        `  index.md  ← arc map`,
-        `  Overall.md  ← whole-book arc`,
-        `  Acts/  ← act-level arc files`,
-        `${notesFolder}/  ← story notes`,
-        `${charactersFolder}/  ← character index and one profile per character`,
-        `${sessionFile}  ← ephemeral working state (current focus / next actions / open questions / handoff) via session_focus_*`,
-        `${preferencesFile}  ← durable working preferences ("do it like this for me"); user-owned, never tool-written`,
-        `${storyFolder}/`,
-        ...ctx.languages.map(l => `  ${l.folderName}/  ← ${l.code} chapters (one .md per chapter)`),
-        '```',
-        '',
-        '## Writing rules',
-        '- Never rewrite paragraphs unless explicitly asked. Suggest edits only.',
-        '- HTML comments `<!-- -->` in chapter files are writer notes. Treat as context, not prose.',
-        '- Quotation marks and dashes in chapter files are managed by the Bindery extension. Do not flag these as formatting errors.',
-    );
-    if (ctx.audience) {
-        lines.push(`- Content is aimed at ${ctx.audience}. Keep language accessible and themes age-appropriate.`);
-    }
-    lines.push(
-        '',
-        '## Available skills',
-        'Use these slash commands to trigger structured workflows:',
-        '| Command | Purpose |',
-        '|---|---|',
-        '| `/review` | Review a chapter for language, arc consistency, and age-appropriateness |',
-        '| `/brainstorm` | Guided story ideation when the author is stuck |',
-        '| `/plan-beats` | Create, expand, or refine chapter and scene beatmaps |',
-        '| `/character-setup` | Create or refine structured character profiles |',
-        '| `/memory` | Update memory files and compact if needed |',
-        '| `/translate` | Assist with chapter translation |',
-        '| `/translation-review` | Review a hand-crafted translation against the source |',
-        '| `/status` | Book progress snapshot |',
-        '| `/continuity` | Check a chapter for consistency errors |',
-        '| `/read-aloud` | Test how a passage reads when spoken |',
-        '| `/read-in` | Load context and get your bearings at the start of a session |',
-        '| `/proof-read` | Read the book as multiple proofreaders and present the findings |',
-        '',
-        '## MCP server (bindery-mcp)',
-        '',
-        'All tools require a `book` argument. Use `list_books` to discover available names.',
-        'Prefer these tools over Read/Bash when they apply.',
-        '',
-        '| Tool | What it does |',
-        '|---|---|',
-        '| `list_books` | List all configured book names |',
-        '| `identify_book` | Match a working directory to a book name |',
-        '| `health` | Server status: settings, index, embedding backend |',
-        '| `init_workspace` | Create or update `.bindery/settings.json`, `translations.json`, `.bindery/README.md`, and the opinionated Arc / Notes / Characters / SESSION / PREFERENCES / memory / status scaffold |',
-        '| `setup_ai_files` | Regenerate AI instruction files and return a change manifest |',
-        '| `index_build` | Build or rebuild the full-text search index |',
-        '| `index_status` | Show index chunk count and build time |',
-        '| `get_text` | Read any file by relative path, with optional line range |',
-        '| `get_chapter` | Full chapter content by number and language |',
-        '| `get_book_until` | Fetch chapters from 1..N (or start..N) in one call, concatenated in reading order |',
-        '| `get_overview` | Chapter structure — acts, chapters, titles |',
-        '| `get_notes` | Notes/ files, filterable by category or name |',
-        '| `note_list` / `note_get` | List or read canonical story notes under Notes/ |',
-        '| `note_create` / `note_append` | Create or append canonical story notes under Notes/ |',
-        '| `character_list` / `character_get` | List or read structured character profiles |',
-        '| `character_create` / `character_update` | Create or update structured character profiles and the cast index |',
-        '| `arc_list` / `arc_get` | List or read structured arc files |',
-        '| `arc_create` / `arc_update` | Create or update structured arc files and the arc index |',
-        '| `search` | BM25 full-text search with ranked snippets, optional semantic ranking |',
-        '| `format` | Apply typography formatting to a file or folder |',
-        '| `get_review_text` | Structured git diff with review-marker regions and optional auto-staging that consumes markers |',
-        '| `update_workspace` | Fetch and pull the current branch, with branch/default-branch reporting |',
-        '| `git_snapshot` | Commit changes in bindery workspace, with optional push |',
-        '| `get_translation` | List glossary entries for a language, or look up a specific term (forgiving) |',
-        '| `add_translation` | Add or update a cross-language glossary entry (agent reference, not auto-applied) |',
-        '| `get_dialect` | List dialect substitution rules, or look up a specific word |',
-        '| `add_dialect` | Add or update a dialect substitution rule (auto-applied at export, e.g. US→UK) |',
-        '| `add_language` | Add a language to settings.json and scaffold its story folder with stubs |',
-        '| `settings_update` | Merge a partial patch into settings.json without replacing unrelated keys |',
-        '| `memory_list` | List `.bindery/memories/` files with line counts |',
-        '| `memory_append` | Append a dated session entry to a file in `.bindery/memories/` |',
-        '| `memory_compact` | Overwrite a file in `.bindery/memories/` with a summary (backs up original to `.bindery/memories/archive/`) |',
-        '| `chapter_status_get` | Read the chapter progress tracker — entries grouped by status |',
-        '| `chapter_status_update` | Upsert chapter progress entries (send only changed chapters) |',
-        `| \`session_focus_get\` | Read current working state from ${sessionFile} (optionally one section) |`,
-        `| \`session_focus_update\` | Update neutral ${sessionFile} sections (Current Focus, Next Actions, Open Questions, Handoff Notes); leaves ${preferencesFile} untouched |`,
-        `| \`inbox_process\` | Enumerate ${notesFolder}/Inbox.md items with stable numbers and propose destinations (read-only) |`,
-        `| \`inbox_resolve\` | Remove already-routed inbox items by number after confirmation |`,
-    );
-    return lines.filter(l => l !== '\n').join('\n') + '\n';
+    return renderAgentTemplate(ctx, { hasSkills: true, requiresSkillUpload: true, name: 'Claude' });
 }
diff --git a/bindery-core/src/templates/context.ts b/bindery-core/src/templates/context.ts
index c2b69cd..5bcba60 100644
--- a/bindery-core/src/templates/context.ts
+++ b/bindery-core/src/templates/context.ts
@@ -32,15 +32,10 @@ export interface TemplateMeta {
     version: number;
     /** Short, human-readable label used by health reporting. */
     label:   string;
-    /** Legacy companion zip path or null. */
-    zip:     string | null;
 }
 
-export function audienceNote(ctx: TemplateContext): string {
-    return ctx.audience ? `Target audience: ${ctx.audience}.` : '';
-}
-
-export function languageSection(ctx: TemplateContext): string {
-    if (!ctx.hasMultiLang) { return ''; }
-    return `\nLanguages: ${ctx.langList}.\n`;
-}
+export interface AgentTemplate {
+    hasSkills: boolean;
+    requiresSkillUpload: boolean;
+    name: string;
+}
\ No newline at end of file
diff --git a/bindery-core/src/templates/copilot.ts b/bindery-core/src/templates/copilot.ts
index 5abb364..0464b88 100644
--- a/bindery-core/src/templates/copilot.ts
+++ b/bindery-core/src/templates/copilot.ts
@@ -1,48 +1,12 @@
-import { audienceNote, languageSection, type TemplateContext, type TemplateMeta } from './context';
+import { type TemplateContext, type TemplateMeta } from './context';
+import { renderAgentTemplate } from './agentRender';
 
 export const meta: TemplateMeta = {
     file:    '.github/copilot-instructions.md',
-    version: 11,
+    version: 12,
     label:   'copilot instructions',
-    zip:     null,
 };
 
 export function render(ctx: TemplateContext): string {
-    const { title, author, description, genre, storyFolder, notesFolder, arcFolder, charactersFolder, sessionFile, preferencesFile, arcGranularity } = ctx;
-    const lines: string[] = [`# GitHub Copilot — ${title}`, ''];
-    if (genre || description || ctx.audience) {
-        lines.push('## Project');
-        if (genre)       { lines.push(`${genre} novel.`); }
-        if (description) { lines.push(description); }
-        if (ctx.audience){ lines.push(audienceNote(ctx)); }
-        if (author)      { lines.push(`Author: ${author}.`); }
-        lines.push(languageSection(ctx), '');
-    }
-    lines.push(
-        '## Repo layout',
-        '```',
-        `${arcFolder}/  ← story architecture (${arcGranularity}-level arc planning by default)`,
-        `  index.md / Overall.md / Acts/`,
-        `${notesFolder}/  ← story notes`,
-        `${charactersFolder}/  ← character index and one profile per character`,
-        `${sessionFile}  ← ephemeral working state (current focus / handoff) via session_focus_*`,
-        `${preferencesFile}  ← durable working preferences; user-owned, never tool-written`,
-        `${storyFolder}/`,
-        ...ctx.languages.map(l => `  ${l.folderName}/  ← ${l.code} chapters`),
-        '```',
-        '',
-        '## Shared skill workflows',
-        '- Workspace skill files live in `.claude/skills/` and may also be picked up by agents beyond Claude.',
-        '- Prefer those shared slash workflows when available: `/read-in`, `/review`, `/translation-review`, `/translate`, `/memory`, `/continuity`, `/status`, `/read-aloud`, `/proof-read`, `/plan-beats`, `/character-setup`.',
-        '- Treat arc files as story architecture, not generic notes. Use `arc_*` tools for structure, `character_*` tools for durable cast facts, `note_*` tools for story notes, `memory_*` tools for cross-session decisions, and `session_focus_*` tools for current working state. Durable preferences are user-owned in PREFERENCES.md — propose changes rather than writing it.',
-        '- Send rough, unsorted, or pasted material to `Notes/Inbox.md`, then triage it with `inbox_process` (propose destinations) and `inbox_resolve` (clear routed items) — do not dump it into memory.',
-        '',
-        '## Writing guidelines',
-        '- HTML comments `<!-- -->` in chapter files are writer notes — treat as context only.',
-        '- Quotation marks and dashes are managed by the Bindery VS Code extension. Do not normalize them.',
-    );
-    if (ctx.audience) {
-        lines.push(`- Content targets ${ctx.audience}. Keep vocabulary accessible and themes appropriate.`);
-    }
-    return lines.join('\n') + '\n';
+    return renderAgentTemplate(ctx, { hasSkills: true, requiresSkillUpload: false, name: 'GitHub Copilot' });
 }
diff --git a/bindery-core/src/templates/cursor.ts b/bindery-core/src/templates/cursor.ts
index a9b5451..531a342 100644
--- a/bindery-core/src/templates/cursor.ts
+++ b/bindery-core/src/templates/cursor.ts
@@ -1,42 +1,12 @@
 import type { TemplateContext, TemplateMeta } from './context';
+import { renderAgentTemplate } from './agentRender';
 
 export const meta: TemplateMeta = {
     file:    '.cursor/rules',
-    version: 11,
+    version: 12,
     label:   'cursor rules',
-    zip:     null,
 };
 
 export function render(ctx: TemplateContext): string {
-    const { title, storyFolder, notesFolder, arcFolder, charactersFolder, sessionFile, preferencesFile, arcGranularity, memoriesFolder } = ctx;
-    const lines: string[] = [
-        `# Cursor rules — ${title}`,
-        '',
-        `Story folder: \`${storyFolder}/\``,
-        `Notes folder: \`${notesFolder}/\``,
-        `Arc folder: \`${arcFolder}/\` (index.md, Overall.md, Acts/; default granularity: ${arcGranularity})`,
-        `Characters folder: \`${charactersFolder}/\``,
-        `Session file: \`${sessionFile}\` (ephemeral working state)`,
-        `Preferences file: \`${preferencesFile}\` (durable, user-owned)`,
-        '',
-        '## Context files to read',
-        `- \`${sessionFile}\` — ephemeral working state (current focus, next actions, open questions, handoff) via \`session_focus_*\``,
-        `- \`${preferencesFile}\` — durable working preferences ("do it like this for me"); user-owned, never tool-written`,
-        `- \`${memoriesFolder}/global.md\` — cross-chapter decisions (read at start of session)`,
-        `- \`${arcFolder}/\` — story architecture, structure, pacing, and beats`,
-        `- \`${charactersFolder}/\` — character index and one profile per character`,
-        `- \`${notesFolder}/\` — story notes, like world rules, scene ideas, inbox, and research`,
-        '- Shared workflows live in `.claude/skills/`; if your runtime exposes them, prefer `/read-in`, `/review`, `/translation-review`, `/translate`, `/memory`, `/continuity`, `/status`, `/read-aloud`, `/proof-read`, `/plan-beats`, and `/character-setup` for those tasks.',
-        '- Use `arc_*` tools for story structure, `character_*` tools for cast profiles, `note_*` tools for story notes, `memory_*` tools for session decisions, `chapter_status_*` tools for progress, and `session_focus_*` tools for current working state.',
-        '- Send rough, unsorted, or pasted material to `Notes/Inbox.md`, then triage with `inbox_process` and `inbox_resolve` — do not dump it into memory.',
-        '',
-        '## Rules',
-        '- HTML comments `<!-- -->` in chapter files are writer notes. Treat as context, not story content.',
-        '- Do not normalize quotation marks or dashes — these are managed by the Bindery extension.',
-        '- Do not rewrite prose unless explicitly asked. Suggest edits only.',
-    ];
-    if (ctx.audience) {
-        lines.push(`- Target audience is ${ctx.audience}. Flag content that is too complex or inappropriate.`);
-    }
-    return lines.join('\n') + '\n';
+    return renderAgentTemplate(ctx, { hasSkills: false, requiresSkillUpload: false, name: 'Cursor' });
 }
diff --git a/bindery-core/src/templates/skills/brainstorm.ts b/bindery-core/src/templates/skills/brainstorm.ts
index 30ad47d..95e575a 100644
--- a/bindery-core/src/templates/skills/brainstorm.ts
+++ b/bindery-core/src/templates/skills/brainstorm.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/brainstorm/SKILL.md',
     version: 12,
     label:   'brainstorm skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/character-setup.ts b/bindery-core/src/templates/skills/character-setup.ts
index 3659998..84e77a2 100644
--- a/bindery-core/src/templates/skills/character-setup.ts
+++ b/bindery-core/src/templates/skills/character-setup.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/character-setup/SKILL.md',
     version: 1,
     label:   'character-setup skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/continuity.ts b/bindery-core/src/templates/skills/continuity.ts
index e2684d2..fdc62f2 100644
--- a/bindery-core/src/templates/skills/continuity.ts
+++ b/bindery-core/src/templates/skills/continuity.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/continuity/SKILL.md',
     version: 14,
     label:   'continuity skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/memory.ts b/bindery-core/src/templates/skills/memory.ts
index c6ddf3a..7d00696 100644
--- a/bindery-core/src/templates/skills/memory.ts
+++ b/bindery-core/src/templates/skills/memory.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/memory/SKILL.md',
     version: 14,
     label:   'memory skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/plan-beats.ts b/bindery-core/src/templates/skills/plan-beats.ts
index 8eb71b0..ec4555a 100644
--- a/bindery-core/src/templates/skills/plan-beats.ts
+++ b/bindery-core/src/templates/skills/plan-beats.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/plan-beats/SKILL.md',
     version: 3,
     label:   'plan-beats skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/proof-read.ts b/bindery-core/src/templates/skills/proof-read.ts
index b9ddb1c..de70233 100644
--- a/bindery-core/src/templates/skills/proof-read.ts
+++ b/bindery-core/src/templates/skills/proof-read.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/proof-read/SKILL.md',
     version: 6,
     label:   'proof-read skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/read-aloud.ts b/bindery-core/src/templates/skills/read-aloud.ts
index 837e640..d571952 100644
--- a/bindery-core/src/templates/skills/read-aloud.ts
+++ b/bindery-core/src/templates/skills/read-aloud.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/read-aloud/SKILL.md',
     version: 11,
     label:   'read-aloud skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/read-in.ts b/bindery-core/src/templates/skills/read-in.ts
index 8fc77a8..d9c43bb 100644
--- a/bindery-core/src/templates/skills/read-in.ts
+++ b/bindery-core/src/templates/skills/read-in.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/read-in/SKILL.md',
     version: 16,
     label:   'read-in skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/review.ts b/bindery-core/src/templates/skills/review.ts
index 41f2574..ff03114 100644
--- a/bindery-core/src/templates/skills/review.ts
+++ b/bindery-core/src/templates/skills/review.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/review/SKILL.md',
     version: 14,
     label:   'review skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/status.ts b/bindery-core/src/templates/skills/status.ts
index c3b98cb..380ae13 100644
--- a/bindery-core/src/templates/skills/status.ts
+++ b/bindery-core/src/templates/skills/status.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/status/SKILL.md',
     version: 14,
     label:   'status skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/translate.ts b/bindery-core/src/templates/skills/translate.ts
index fbe8e37..62ad0b4 100644
--- a/bindery-core/src/templates/skills/translate.ts
+++ b/bindery-core/src/templates/skills/translate.ts
@@ -4,7 +4,6 @@ export const meta: TemplateMeta = {
     file:    '.claude/skills/translate/SKILL.md',
     version: 10,
     label:   'translate skill',
-    zip:     null,
 };
 
 const CONTENT = [
diff --git a/bindery-core/src/templates/skills/translation-review.ts b/bindery-core/src/templates/skills/translation-review.ts
index 167b113..6766b20 100644
--- a/bindery-core/src/templates/skills/translation-review.ts
+++ b/bindery-core/src/templates/skills/translation-review.ts
@@ -2,9 +2,8 @@ import type { TemplateContext, TemplateMeta } from '../context';
 
 export const meta: TemplateMeta = {
     file:    '.claude/skills/translation-review/SKILL.md',
-    version: 4,
+    version: 5,
     label:   'translation-review skill',
-    zip:     null,
 };
 
 const CONTENT = [
@@ -73,9 +72,9 @@ const CONTENT = [
     "",
     "## Output format",
     "",
-    "| Category | Before (target) | After (target) | Reason |",
-    "|---|---|---|---|",
-    "| Glossary | Keep context short; bold only the changed words | Suggested wording | Term differs from stored glossary |",
+    "| Category | Location | Before (target) | After (target) | Reason |",
+    "|---|---|---|---|---|",
+    "| Glossary | Line 5 | Keep context short; bold only the changed words | Suggested wording | Term differs from stored glossary |",
     "",
     "**Category values:** Fidelity · Naturalness · Glossary · Register · Comment",
     "",
diff --git a/bindery-core/test/templates.test.ts b/bindery-core/test/templates.test.ts
index a643b64..e86bb78 100644
--- a/bindery-core/test/templates.test.ts
+++ b/bindery-core/test/templates.test.ts
@@ -64,10 +64,9 @@ describe('renderTemplate — claude', () => {
     expect(result).toContain('## Project');
     expect(result).toContain('## Start of session');
     expect(result).toContain('## Memory system');
-    expect(result).toContain('## Repo layout');
+    expect(result).toContain('## Repository layout');
     expect(result).toContain('## Writing rules');
-    expect(result).toContain('## Available skills');
-    expect(result).toContain('## MCP server (bindery-mcp)');
+    expect(result).toContain('## Capabilities source');
   });
 
   it('includes genre, description, audience, and author', () => {
@@ -113,8 +112,12 @@ describe('renderTemplate — copilot', () => {
   it('contains required sections', () => {
     const result = renderTemplate('copilot', makeCtx());
     expect(result).toContain('# GitHub Copilot — Test Book');
-    expect(result).toContain('## Repo layout');
-    expect(result).toContain('## Writing guidelines');
+    expect(result).toContain('## Project');
+    expect(result).toContain('## Start of session');
+    expect(result).toContain('## Memory system');
+    expect(result).toContain('## Repository layout');
+    expect(result).toContain('## Writing rules');
+    expect(result).toContain('## Capabilities source');
   });
 
   it('includes genre and description when set', () => {
@@ -123,9 +126,12 @@ describe('renderTemplate — copilot', () => {
     expect(result).toContain('A tale of adventure.');
   });
 
-  it('omits project section entirely when all optional fields are empty', () => {
+  it('keeps project section even when optional project fields are empty', () => {
     const result = renderTemplate('copilot', makeMinimalCtx());
-    expect(result).not.toContain('## Project');
+    expect(result).toContain('## Project');
+    expect(result).not.toContain('Genre:');
+    expect(result).not.toContain('Author:');
+    expect(result).not.toContain('Target audience:');
   });
 
   it('includes audience writing guideline when audience is set', () => {
@@ -133,13 +139,10 @@ describe('renderTemplate — copilot', () => {
     expect(result).toContain('middle-grade');
   });
 
-  it('mentions shared workspace skills from the .claude folder', () => {
+  it('uses read-in startup guidance and no explicit skill catalog', () => {
     const result = renderTemplate('copilot', makeCtx());
-    expect(result).toContain('.claude/skills/');
-    expect(result).toContain('/translation-review');
     expect(result).toContain('/read-in');
-    expect(result).toContain('/plan-beats');
-    expect(result).toContain('/character-setup');
+    expect(result).not.toContain('.claude/skills/');
   });
 
   it('ends with a newline', () => {
@@ -150,14 +153,19 @@ describe('renderTemplate — copilot', () => {
 describe('renderTemplate — cursor', () => {
   it('contains required sections', () => {
     const result = renderTemplate('cursor', makeCtx());
-    expect(result).toContain('# Cursor rules — Test Book');
-    expect(result).toContain('## Context files to read');
-    expect(result).toContain('## Rules');
+    expect(result).toContain('# Cursor — Test Book');
+    expect(result).toContain('## Project');
+    expect(result).toContain('## Start of session');
+    expect(result).toContain('## Memory system');
+    expect(result).toContain('## Repository layout');
+    expect(result).toContain('## Writing rules');
+    expect(result).toContain('## Capabilities source');
   });
 
-  it('references memory and arc folder paths', () => {
+  it('references arc folder and memory tools', () => {
     const result = renderTemplate('cursor', makeCtx());
-    expect(result).toContain('.bindery/memories');
+    expect(result).toContain('memory_append');
+    expect(result).toContain('memory_compact');
     expect(result).toContain('Arc/');
   });
 
@@ -166,13 +174,11 @@ describe('renderTemplate — cursor', () => {
     expect(result).toContain('middle-grade');
   });
 
-  it('mentions shared workspace skills from the .claude folder', () => {
+  it('uses non-skill startup guidance for runtimes without skill support', () => {
     const result = renderTemplate('cursor', makeCtx());
-    expect(result).toContain('.claude/skills/');
-    expect(result).toContain('/translation-review');
-    expect(result).toContain('/proof-read');
-    expect(result).toContain('/plan-beats');
-    expect(result).toContain('/character-setup');
+    expect(result).toContain('Read SESSION.md');
+    expect(result).toContain('get_chapter(chapterNumber)');
+    expect(result).not.toContain('/read-in');
   });
 
   it('ends with a newline', () => {
@@ -184,11 +190,12 @@ describe('renderTemplate — agents', () => {
   it('contains required sections', () => {
     const result = renderTemplate('agents', makeCtx());
     expect(result).toContain('# Agent Instructions — Test Book');
-    expect(result).toContain('## Project overview');
+    expect(result).toContain('## Project');
     expect(result).toContain('## Start of session');
-    expect(result).toContain('## Story files');
-    expect(result).toContain('## Writing guidelines');
-    expect(result).toContain('## Key reference files');
+    expect(result).toContain('## Memory system');
+    expect(result).toContain('## Repository layout');
+    expect(result).toContain('## Writing rules');
+    expect(result).toContain('## Capabilities source');
   });
 
   it('includes genre, description, audience, and author', () => {
@@ -199,19 +206,21 @@ describe('renderTemplate — agents', () => {
     expect(result).toContain('Jane Doe');
   });
 
-  it('references memories and arc folders', () => {
+  it('references repository structure and arc folders', () => {
     const result = renderTemplate('agents', makeCtx());
-    expect(result).toContain('.bindery/memories');
+    expect(result).toContain('Repository layout');
     expect(result).toContain('Arc/');
   });
 
-  it('mentions shared workspace skills from the .claude folder', () => {
+  it('uses read-in startup guidance and no explicit shared-skill inventory section', () => {
     const result = renderTemplate('agents', makeCtx());
-    expect(result).toContain('.claude/skills/');
-    expect(result).toContain('/translation-review');
-    expect(result).toContain('/review');
-    expect(result).toContain('/plan-beats');
-    expect(result).toContain('/character-setup');
+    expect(result).toContain('/read-in');
+    expect(result).not.toContain('## Shared skill workflows');
+  });
+
+  it('uses skill-first startup guidance with read-in', () => {
+    const result = renderTemplate('agents', makeCtx());
+    expect(result).toContain('Use /read-in at the start of a session');
   });
 
   it('ends with a newline', () => {
diff --git a/mcp-ts/src/aisetup.ts b/mcp-ts/src/aisetup.ts
index fffb55a..c4228dd 100644
--- a/mcp-ts/src/aisetup.ts
+++ b/mcp-ts/src/aisetup.ts
@@ -2,7 +2,8 @@
  * AI instruction file generation for Bindery (MCP server).
  *
  * Generates CLAUDE.md, .github/copilot-instructions.md, .cursor/rules,
- * AGENTS.md, and .claude/skills/<skill>/SKILL.md from the book's
+ * AGENTS.md, and skills under .claude/skills/<skill>/SKILL.md and
+ * .agents/skills/<skill>/SKILL.md from the book's
  * .bindery/settings.json.
  *
  * Template content is maintained in bindery-core/src/templates/*.ts
@@ -58,25 +59,21 @@ export interface AiSetupOptions {
 export interface AiSetupResult {
     regenerated: string[];
     skipped: string[];
-    skillZipManifest: {
-        rebuilt: string[];
-        created: string[];
-        skipped: string[];
-        failed: string[];
-    };
     versionStamp: AiVersionFile;
 }
 
 interface AiVersionEntry {
     version: number;
     label: string;
-    zip: string | null;
 }
 
 export interface AiVersionFile {
     versions: Record<string, AiVersionEntry>;
 }
 
+const SKILL_ROOTS = ['.claude', '.agents'] as const;
+const SKILL_PATH_RE = /^\.(claude|agents)\/skills\/([^/]+)\/SKILL\.md$/;
+
 // ─── Settings types ───────────────────────────────────────────────────────────
 
 interface Settings extends Omit<WorkspaceSettings, 'languages'> {
@@ -142,7 +139,6 @@ export function setupAiFiles(options: AiSetupOptions): AiSetupResult {
     const result: AiSetupResult = {
         regenerated: [],
         skipped: [],
-        skillZipManifest: { rebuilt: [], created: [], skipped: [], failed: [] },
         versionStamp: versionFile,
     };
 
@@ -169,6 +165,10 @@ export function setupAiFiles(options: AiSetupOptions): AiSetupResult {
                 break;
             case 'agents':
                 writeFile(root, 'AGENTS.md', renderTemplate('agents', ctx), overwrite, versionFile, result);
+                for (const skill of skills) {
+                    const skillMd = path.join('.agents', 'skills', skill, 'SKILL.md');
+                    writeFile(root, skillMd, renderTemplate(skill, ctx), overwrite, versionFile, result);
+                }
                 break;
         }
     }
@@ -200,7 +200,10 @@ export function readAiVersionFile(root: string): AiVersionFile {
 export function expectedAiVersionEntries(): Record<string, AiVersionEntry> {
     const out: Record<string, AiVersionEntry> = {};
     for (const [file, info] of Object.entries(FILE_VERSION_INFO)) {
-        out[file] = { version: info.version, label: info.label, zip: info.zip };
+        const entry = { version: info.version, label: info.label };
+        for (const variant of versionPathVariants(file)) {
+            out[variant] = entry;
+        }
     }
     return out;
 }
@@ -222,7 +225,6 @@ export function writeBinderyCapabilitiesReadme(root: string): void {
     const versionFile = readAiVersionFile(root);
     const result: AiSetupResult = {
         regenerated: [], skipped: [],
-        skillZipManifest: { rebuilt: [], created: [], skipped: [], failed: [] },
         versionStamp: versionFile,
     };
     writeFile(root, path.join('.bindery', 'README.md'), renderTemplate('bindery-readme', ctx), true, versionFile, result);
@@ -241,7 +243,7 @@ function writeFile(
 ): void {
     const full = path.join(root, relPath);
     const key = toKey(relPath);
-    const expected = FILE_VERSION_INFO[key];
+    const expected = expectedVersionInfoForKey(key);
     const existingVersion = versionFile.versions[key]?.version ?? 0;
     const isUpToDate = expected ? existingVersion >= expected.version : true;
 
@@ -258,15 +260,29 @@ function writeFile(
 }
 
 function stampVersionEntry(versionFile: AiVersionFile, relPath: string): void {
-    const expected = FILE_VERSION_INFO[relPath];
+    const expected = expectedVersionInfoForKey(relPath);
     if (!expected) { return; }
     versionFile.versions[relPath] = {
         version: expected.version,
-        label: expected.label,
-        zip: expected.zip,
+        label: expected.label
     };
 }
 
+function expectedVersionInfoForKey(key: string): { version: number; label: string } | undefined {
+    for (const variant of versionPathVariants(key)) {
+        const expected = FILE_VERSION_INFO[variant];
+        if (expected) { return expected; }
+    }
+    return undefined;
+}
+
+function versionPathVariants(relPath: string): string[] {
+    const skillMatch = SKILL_PATH_RE.exec(relPath);
+    if (!skillMatch) { return [relPath]; }
+    const skillName = skillMatch[2];
+    return SKILL_ROOTS.map(root => `${root}/skills/${skillName}/SKILL.md`);
+}
+
 function stampAiVersionFile(root: string, versionFile: AiVersionFile): void {
     const dir = path.join(root, '.bindery');
     fs.mkdirSync(dir, { recursive: true });
diff --git a/mcp-ts/src/tools.ts b/mcp-ts/src/tools.ts
index 072fa7b..59adb71 100644
--- a/mcp-ts/src/tools.ts
+++ b/mcp-ts/src/tools.ts
@@ -446,7 +446,7 @@ function getSemanticStatus(root: string): SemanticStatus {
     return { status, staleReasons: stale.isStale ? stale.reasons : [] };
 }
 
-type OutdatedEntry = { file: string; label: string; zip: string | null; expected: number; found: number };
+type OutdatedEntry = { file: string; label: string; expected: number; found: number };
 
 function getOutdatedAiFiles(root: string, enabledTargets: Set<string>): OutdatedEntry[] {
     const installed = readAiVersionFile(root);
@@ -457,7 +457,7 @@ function getOutdatedAiFiles(root: string, enabledTargets: Set<string>): Outdated
         if (!fs.existsSync(path.join(root, file))) { continue; }
         const found = installed.versions[file]?.version ?? 0;
         if (found < exp.version) {
-            outdated.push({ file, label: exp.label, zip: exp.zip, expected: exp.version, found });
+            outdated.push({ file, label: exp.label, expected: exp.version, found });
         }
     }
     return outdated;
@@ -2626,13 +2626,6 @@ export function toolSetupAiFiles(root: string, args: SetupAiFilesArgs): string {
     const response = {
         regenerated_files: result.regenerated,
         skipped_files: result.skipped,
-        skill_zips: {
-            created: result.skillZipManifest.created,
-            rebuilt: result.skillZipManifest.rebuilt,
-            skipped: result.skillZipManifest.skipped,
-            failed: result.skillZipManifest.failed,
-            reupload_required: [],
-        },
         skill_files: {
             reupload_required: skillFilesToReupload,
         },
diff --git a/mcp-ts/test/aisetup.test.ts b/mcp-ts/test/aisetup.test.ts
index 2add7ba..f75e9f1 100644
--- a/mcp-ts/test/aisetup.test.ts
+++ b/mcp-ts/test/aisetup.test.ts
@@ -21,6 +21,11 @@ async function loadAiSetup() {
   return import('../src/aisetup');
 }
 
+async function loadTemplates() {
+  vi.resetModules();
+  return import('../src/templates');
+}
+
 afterEach(() => {
   vi.restoreAllMocks();
   vi.resetModules();
@@ -52,29 +57,6 @@ describe('setupAiFiles skill generation', () => {
     expect(fs.existsSync(path.join(root, '.claude', 'skills', 'translation-review.zip'))).toBe(false);
   });
 
-  it('returns an empty skill zip manifest (zips are no longer generated)', async () => {
-    const { setupAiFiles } = await loadAiSetup();
-
-    const root = makeRoot();
-    write(path.join(root, '.bindery', 'settings.json'), JSON.stringify({
-      bookTitle: 'Test Book',
-      storyFolder: 'Story',
-      languages: [{ code: 'EN', folderName: 'EN' }],
-    }, null, 2) + '\n');
-
-    const result = setupAiFiles({
-      root,
-      targets: ['claude'],
-      skills: ['read-aloud'],
-      overwrite: true,
-    });
-
-    expect(result.skillZipManifest.created).toEqual([]);
-    expect(result.skillZipManifest.rebuilt).toEqual([]);
-    expect(result.skillZipManifest.skipped).toEqual([]);
-    expect(result.skillZipManifest.failed).toEqual([]);
-  });
-
   it('does not overwrite legacy zip files that already exist', async () => {
     const { setupAiFiles } = await loadAiSetup();
 
@@ -87,15 +69,86 @@ describe('setupAiFiles skill generation', () => {
 
     write(path.join(root, '.claude', 'skills', 'read-aloud.zip'), 'legacy zip bytes');
 
-    const result = setupAiFiles({
+    setupAiFiles({
       root,
       targets: ['claude'],
       skills: ['read-aloud'],
       overwrite: true,
     });
-
-    expect(result.skillZipManifest.failed).toEqual([]);
-    expect(result.skillZipManifest.created).toEqual([]);
+   
     expect(fs.readFileSync(path.join(root, '.claude', 'skills', 'read-aloud.zip'), 'utf-8')).toBe('legacy zip bytes');
   });
+
+  it('generates requested skill markdown files for agents target under .agents/skills', async () => {
+    const { setupAiFiles } = await loadAiSetup();
+
+    const root = makeRoot();
+    write(path.join(root, '.bindery', 'settings.json'), JSON.stringify({
+      bookTitle: 'Test Book',
+      storyFolder: 'Story',
+      languages: [{ code: 'EN', folderName: 'EN' }],
+    }, null, 2) + '\n');
+
+    const result = setupAiFiles({
+      root,
+      targets: ['agents'],
+      skills: ['read-in'],
+      overwrite: true,
+    });
+
+    expect(result.regenerated).toContain('.agents/skills/read-in/SKILL.md');
+    expect(fs.existsSync(path.join(root, '.agents', 'skills', 'read-in', 'SKILL.md'))).toBe(true);
+  });
+
+  it('includes .agents skill files in expected AI version entries', async () => {
+    const { expectedAiVersionEntries } = await loadAiSetup();
+    const { FILE_VERSION_INFO } = await loadTemplates();
+
+    const expected = expectedAiVersionEntries();
+    const claudeKey = '.claude/skills/read-in/SKILL.md';
+    const agentsKey = '.agents/skills/read-in/SKILL.md';
+
+    expect(expected[agentsKey]).toEqual(expected[claudeKey]);
+    expect(expected[agentsKey]).toEqual({
+      version: FILE_VERSION_INFO[claudeKey].version,
+      label: FILE_VERSION_INFO[claudeKey].label,
+    });
+  });
+
+  it('regenerates .agents skill file when stamped version is stale and overwrite is false', async () => {
+    const { setupAiFiles, readAiVersionFile } = await loadAiSetup();
+
+    const root = makeRoot();
+    write(path.join(root, '.bindery', 'settings.json'), JSON.stringify({
+      bookTitle: 'Test Book',
+      storyFolder: 'Story',
+      languages: [{ code: 'EN', folderName: 'EN' }],
+    }, null, 2) + '\n');
+
+    setupAiFiles({
+      root,
+      targets: ['agents'],
+      skills: ['read-in'],
+      overwrite: true,
+    });
+
+    const versionPath = path.join(root, '.bindery', 'ai-version.json');
+    const raw = JSON.parse(fs.readFileSync(versionPath, 'utf-8')) as {
+      versions: Record<string, { version: number; label: string }>;
+    };
+    raw.versions['.agents/skills/read-in/SKILL.md'].version = 0;
+    fs.writeFileSync(versionPath, JSON.stringify(raw, null, 2) + '\n', 'utf-8');
+
+    const second = setupAiFiles({
+      root,
+      targets: ['agents'],
+      skills: ['read-in'],
+      overwrite: false,
+    });
+
+    expect(second.regenerated).toContain('.agents/skills/read-in/SKILL.md');
+
+    const stamped = readAiVersionFile(root);
+    expect(stamped.versions['.agents/skills/read-in/SKILL.md'].version).toBeGreaterThan(0);
+  });
 });
diff --git a/mcp-ts/test/tools.test.ts b/mcp-ts/test/tools.test.ts
index b95cfd0..12fd442 100644
--- a/mcp-ts/test/tools.test.ts
+++ b/mcp-ts/test/tools.test.ts
@@ -342,18 +342,12 @@ describe('mcp tools', () => {
     const parsed = JSON.parse(raw) as {
       regenerated_files?: string[];
       skipped_files?: string[];
-      skill_zips?: { created?: string[]; rebuilt?: string[]; skipped?: string[]; failed?: string[]; reupload_required?: string[] };
       skill_files?: { reupload_required?: string[] };
-      ai_versions?: { versions?: Record<string, { version: number; label: string; zip: string | null }> };
+      ai_versions?: { versions?: Record<string, { version: number; label: string; }> };
     };
 
     expect(Array.isArray(parsed.regenerated_files)).toBe(true);
     expect(Array.isArray(parsed.skipped_files)).toBe(true);
-    expect(Array.isArray(parsed.skill_zips?.created)).toBe(true);
-    expect(Array.isArray(parsed.skill_zips?.rebuilt)).toBe(true);
-    expect(Array.isArray(parsed.skill_zips?.skipped)).toBe(true);
-    expect(Array.isArray(parsed.skill_zips?.failed)).toBe(true);
-    expect(Array.isArray(parsed.skill_zips?.reupload_required)).toBe(true);
     expect(Array.isArray(parsed.skill_files?.reupload_required)).toBe(true);
     expect(parsed.skill_files?.reupload_required).toContain('.claude/skills/review/SKILL.md');
     expect(parsed.ai_versions?.versions?.['.claude/skills/review/SKILL.md']?.label).toBe('review skill');
@@ -369,16 +363,11 @@ describe('mcp tools', () => {
 
     const raw = toolSetupAiFiles(root, { targets: ['claude'], skills: ['read-aloud'], overwrite: true });
     const parsed = JSON.parse(raw) as {
-      skill_zips?: { created?: string[]; rebuilt?: string[]; failed?: string[]; reupload_required?: string[] };
       skill_files?: { reupload_required?: string[] };
     };
 
     const zipPath = path.join(root, '.claude', 'skills', 'read-aloud.zip');
     expect(fs.existsSync(zipPath)).toBe(false);
-    expect(parsed.skill_zips?.created).toEqual([]);
-    expect(parsed.skill_zips?.rebuilt).toEqual([]);
-    expect(parsed.skill_zips?.failed).toEqual([]);
-    expect(parsed.skill_zips?.reupload_required).toEqual([]);
     expect(parsed.skill_files?.reupload_required).toEqual(['.claude/skills/read-aloud/SKILL.md']);
   });
 
@@ -401,7 +390,7 @@ describe('mcp tools', () => {
     // Downgrade the review skill version to simulate outdated
     const versionPath = path.join(root, '.bindery', 'ai-version.json');
     const versionFile = JSON.parse(fs.readFileSync(versionPath, 'utf-8')) as {
-      versions: Record<string, { version: number; label: string; zip: string | null }>;
+      versions: Record<string, { version: number; label: string; }>;
     };
     versionFile.versions['.claude/skills/review/SKILL.md'].version = 0;
     fs.writeFileSync(versionPath, JSON.stringify(versionFile, null, 2) + '\n', 'utf-8');
@@ -436,7 +425,7 @@ describe('mcp tools', () => {
     // Downgrade the review skill version to simulate outdated
     const versionPath = path.join(root, '.bindery', 'ai-version.json');
     const versionFile = JSON.parse(fs.readFileSync(versionPath, 'utf-8')) as {
-      versions: Record<string, { version: number; label: string; zip: string | null }>;
+      versions: Record<string, { version: number; label: string;}>;
     };
     versionFile.versions['.claude/skills/review/SKILL.md'].version = 0;
     fs.writeFileSync(versionPath, JSON.stringify(versionFile, null, 2) + '\n', 'utf-8');
@@ -523,7 +512,7 @@ describe('mcp tools', () => {
 
     const versionPath = path.join(root, '.bindery', 'ai-version.json');
     const versionFile = JSON.parse(fs.readFileSync(versionPath, 'utf-8')) as {
-      versions: Record<string, { version: number; label: string; zip: string | null }>;
+      versions: Record<string, { version: number; label: string; }>;
     };
     versionFile.versions['.claude/skills/review/SKILL.md'].version = 0;
     fs.writeFileSync(versionPath, JSON.stringify(versionFile, null, 2) + '\n', 'utf-8');
@@ -531,7 +520,7 @@ describe('mcp tools', () => {
     const healthRaw = toolHealth(root);
     const health = JSON.parse(healthRaw) as {
       ai_version_outdated?: boolean;
-      ai_versions_outdated?: Array<{ file: string; label: string; zip: string | null }>;
+      ai_versions_outdated?: Array<{ file: string; label: string; }>;
     };
 
     expect(health.ai_version_outdated).toBe(true);
diff --git a/obsidian-plugin/src/ai-setup.ts b/obsidian-plugin/src/ai-setup.ts
index 6f58f43..b64d386 100644
--- a/obsidian-plugin/src/ai-setup.ts
+++ b/obsidian-plugin/src/ai-setup.ts
@@ -2,7 +2,7 @@
  * Obsidian-specific AI setup wrapper.
  *
  * Generates AI instruction files (CLAUDE.md, copilot-instructions.md, .cursor/rules, AGENTS.md)
- * and Claude skill templates from the book's .bindery/settings.json.
+ * and skill templates from the book's .bindery/settings.json.
  *
  * For Obsidian, this is a simpler adaptation since we don't have the VS Code LM API,
  * so we just generate the files to the filesystem directly.
@@ -89,6 +89,10 @@ export function setupAiFiles(
                 break;
             case 'agents':
                 writeFile(bookRoot, 'AGENTS.md', renderTemplate('agents', ctx), overwrite, result);
+                for (const skill of skills) {
+                    const skillDir = path.join('.agents', 'skills', skill);
+                    writeFile(bookRoot, path.join(skillDir, 'SKILL.md'), renderTemplate(skill, ctx), overwrite, result);
+                }
                 break;
         }
     }
diff --git a/obsidian-plugin/test/ai-setup.test.ts b/obsidian-plugin/test/ai-setup.test.ts
index 0b2d095..b2cc236 100644
--- a/obsidian-plugin/test/ai-setup.test.ts
+++ b/obsidian-plugin/test/ai-setup.test.ts
@@ -85,6 +85,22 @@ describe('AI Setup', () => {
         expect(fs.existsSync(agentsPath)).toBe(true);
     });
 
+    it('should create skill markdown files under .agents/skills when agents target requested', async () => {
+        const settingsPath = path.join(tempRoot, '.bindery', 'settings.json');
+        fs.mkdirSync(path.dirname(settingsPath), { recursive: true });
+        fs.writeFileSync(settingsPath, JSON.stringify({
+            bookTitle: 'Test Book',
+        }, null, 2), 'utf-8');
+
+        await setupAiFiles(mockApp, tempRoot, ['agents'], ['read-in', 'review'], false);
+
+        const readInSkillPath = path.join(tempRoot, '.agents', 'skills', 'read-in', 'SKILL.md');
+        const reviewSkillPath = path.join(tempRoot, '.agents', 'skills', 'review', 'SKILL.md');
+
+        expect(fs.existsSync(readInSkillPath)).toBe(true);
+        expect(fs.existsSync(reviewSkillPath)).toBe(true);
+    });
+
     it('should skip existing files when overwrite is false', async () => {
         const settingsPath = path.join(tempRoot, '.bindery', 'settings.json');
         fs.mkdirSync(path.dirname(settingsPath), { recursive: true });
diff --git a/vscode-ext/src/ai-setup.ts b/vscode-ext/src/ai-setup.ts
index 1266974..d9b2cec 100644
--- a/vscode-ext/src/ai-setup.ts
+++ b/vscode-ext/src/ai-setup.ts
@@ -7,7 +7,7 @@
  *   claude    → CLAUDE.md + .claude/skills/<skill>/SKILL.md
  *   copilot   → .github/copilot-instructions.md
  *   cursor    → .cursor/rules
- *   agents    → AGENTS.md  (OpenAI Agents, Aider, Codex, etc.)
+ *   agents    → AGENTS.md + .agents/skills/<skill>/SKILL.md (OpenAI Agents, Aider, Codex, etc.)
  *
  * Templates and TemplateContext live in @bindery/core (single source of truth).
  */
@@ -92,6 +92,10 @@ export function setupAiFiles(options: AiSetupOptions): AiSetupResult {
 
             case 'agents':
                 writeFile(root, 'AGENTS.md', renderTemplate('agents', ctx), overwrite, result);
+                for (const skill of skills) {
+                    const skillDir = path.join('.agents', 'skills', skill);
+                    writeFile(root, path.join(skillDir, 'SKILL.md'), renderTemplate(skill, ctx), overwrite, result);
+                }
                 break;
         }
     }