diff --git a/agent/skills.py b/agent/skills.py
new file mode 100644
index 0000000..263e9cb
--- /dev/null
+++ b/agent/skills.py
@@ -0,0 +1,175 @@
+"""Skill discovery, parsing, and execution."""
+
+import os
+import re
+import json
+import subprocess
+import time
+
+
+def log(msg):
+    """Import-safe logging — overridden by agent.py at init."""
+    print(f"[skills] {msg}", flush=True)
+
+
+def set_logger(fn):
+    """Allow agent.py to inject its logger."""
+    global log
+    log = fn
+
+
+LARGE_OUTPUT_THRESHOLD = 2000
+_output_counter = 0
+
+
+def parse_skill_md(path):
+    """Parse a SKILL.md frontmatter into a tool definition.
+    Returns tool definition dict or None on failure."""
+    try:
+        with open(path) as f:
+            content = f.read()
+    except Exception as e:
+        log(f"Cannot read {path}: {e}")
+        return None
+
+    content = content.replace("\r\n", "\n")
+
+    match = re.match(r"^---\n(.*?)\n---", content, re.DOTALL)
+    if not match:
+        log(f"No frontmatter in {path}")
+        return None
+
+    fm = {}
+    current_key = None
+    current_param = None
+    params = {}
+
+    for line in match.group(1).split("\n"):
+        stripped = line.strip()
+        if not stripped or stripped.startswith("#"):
+            continue
+
+        indent = len(line) - len(line.lstrip())
+
+        if indent >= 2 and current_key == "parameters":
+            if indent >= 4 and current_param:
+                k, _, v = stripped.partition(":")
+                k = k.strip()
+                v = v.strip().strip('"').strip("'")
+                if k == "required":
+                    v = v.lower() in ("true", "yes", "1")
+                params[current_param][k] = v
+            elif ":" in stripped:
+                param_name = stripped.rstrip(":").strip()
+                current_param = param_name
+                params[param_name] = {}
+        elif ":" in line and indent == 0:
+            k, _, v = line.partition(":")
+            k = k.strip()
+            v = v.strip().strip('"').strip("'")
+            fm[k] = v
+            current_key = k
+            if k == "parameters":
+                current_param = None
+
+    if "name" not in fm:
+        log(f"No 'name' field in {path}")
+        return None
+
+    if "description" not in fm:
+        log(f"Warning: no 'description' in {path}")
+
+    properties = {}
+    required = []
+    for pname, pdata in params.items():
+        ptype = pdata.get("type", "string")
+        if ptype not in ("string", "integer", "number", "boolean", "array", "object"):
+            log(f"Warning: unknown type '{ptype}' for param '{pname}' in {path}")
+        properties[pname] = {
+            "type": ptype,
+            "description": pdata.get("description", ""),
+        }
+        if pdata.get("required", False):
+            required.append(pname)
+
+    return {
+        "type": "function",
+        "function": {
+            "name": fm["name"],
+            "description": fm.get("description", ""),
+            "parameters": {
+                "type": "object",
+                "properties": properties,
+                "required": required,
+            },
+        },
+    }
+
+
+def discover_skills(skill_dirs):
+    """Scan skill directories and return tool definitions + script paths."""
+    tools = []
+    scripts = {}
+
+    for skill_dir in skill_dirs:
+        if not os.path.isdir(skill_dir):
+            continue
+        for name in sorted(os.listdir(skill_dir)):
+            skill_path = os.path.join(skill_dir, name)
+            skill_md = os.path.join(skill_path, "SKILL.md")
+            if not os.path.isfile(skill_md):
+                continue
+
+            tool_def = parse_skill_md(skill_md)
+            if not tool_def:
+                continue
+
+            for ext in ("run.py", "run.sh"):
+                script = os.path.join(skill_path, ext)
+                if os.path.isfile(script):
+                    scripts[tool_def["function"]["name"]] = script
+                    break
+
+            if tool_def["function"]["name"] in scripts:
+                tools.append(tool_def)
+
+    return tools, scripts
+
+
+def execute_skill(script_path, args, workspace, config):
+    """Execute a skill script with args as JSON on stdin.
+    Large outputs are saved to a file with a preview returned."""
+    global _output_counter
+    env = os.environ.copy()
+    env["WORKSPACE"] = workspace
+    env["SEARX_URL"] = config.get("searx_url", "https://searx.mymx.me")
+
+    try:
+        result = subprocess.run(
+            ["python3" if script_path.endswith(".py") else "bash", script_path],
+            input=json.dumps(args),
+            capture_output=True,
+            text=True,
+            timeout=120,
+            env=env,
+        )
+        output = result.stdout
+        if result.stderr:
+            output += f"\n[stderr] {result.stderr}"
+        output = output.strip() or "[no output]"
+
+        if len(output) > LARGE_OUTPUT_THRESHOLD:
+            output_dir = f"{workspace}/tool_outputs"
+            os.makedirs(output_dir, exist_ok=True)
+            _output_counter += 1
+            filepath = f"{output_dir}/output_{_output_counter}.txt"
+            with open(filepath, "w") as f:
+                f.write(output)
+            preview = output[:1500]
+            return f"{preview}\n\n[output truncated — full result ({len(output)} chars) saved to {filepath}. Use run_command to read it: cat {filepath}]"
+
+        return output
+    except subprocess.TimeoutExpired:
+        return "[skill timed out after 120s]"
+    except Exception as e:
+        return f"[skill error: {e}]"
diff --git a/agent/tools.py b/agent/tools.py
new file mode 100644
index 0000000..f7ebe02
--- /dev/null
+++ b/agent/tools.py
@@ -0,0 +1,132 @@
+"""LLM interaction, tool dispatch, and memory management."""
+
+import os
+import re
+import json
+import urllib.request
+import urllib.error
+
+
+def log(msg):
+    print(f"[tools] {msg}", flush=True)
+
+
+def set_logger(fn):
+    global log
+    log = fn
+
+
+# ─── Memory ──────────────────────────────────────────────────────────
+
+def load_memory(workspace):
+    """Load all memory files from workspace."""
+    memory = ""
+    try:
+        with open(f"{workspace}/MEMORY.md") as f:
+            memory = f.read().strip()
+        mem_dir = f"{workspace}/memory"
+        if os.path.isdir(mem_dir):
+            for fname in sorted(os.listdir(mem_dir)):
+                if fname.endswith(".md"):
+                    try:
+                        with open(f"{mem_dir}/{fname}") as f:
+                            topic = fname.replace(".md", "")
+                            memory += f"\n\n## {topic}\n{f.read().strip()}"
+                    except Exception:
+                        pass
+    except FileNotFoundError:
+        pass
+    return memory
+
+
+# ─── Tool Call Parsing ───────────────────────────────────────────────
+
+def try_parse_tool_call(text):
+    """Parse text-based tool calls (model dumps JSON as text)."""
+    text = re.sub(r"</?tool_call>", "", text).strip()
+    for start in range(len(text)):
+        if text[start] == "{":
+            for end in range(len(text), start, -1):
+                if text[end - 1] == "}":
+                    try:
+                        obj = json.loads(text[start:end])
+                        name = obj.get("name")
+                        args = obj.get("arguments", {})
+                        if name and isinstance(args, dict):
+                            return (name, args)
+                    except json.JSONDecodeError:
+                        continue
+    return None
+
+
+# ─── LLM Interaction ────────────────────────────────────────────────
+
+def ollama_request(ollama_url, payload):
+    data = json.dumps(payload).encode("utf-8")
+    req = urllib.request.Request(
+        f"{ollama_url}/api/chat",
+        data=data,
+        headers={"Content-Type": "application/json"},
+    )
+    with urllib.request.urlopen(req, timeout=120) as resp:
+        return json.loads(resp.read(2_000_000))
+
+
+def query_ollama(messages, runtime, tools, skill_scripts, dispatch_fn, ollama_url, max_rounds):
+    """Call Ollama chat API with skill-based tool support."""
+    payload = {
+        "model": runtime["model"],
+        "messages": messages,
+        "stream": False,
+        "options": {"num_predict": 512},
+    }
+
+    if tools:
+        payload["tools"] = tools
+
+    for round_num in range(max_rounds):
+        remaining = max_rounds - round_num
+        try:
+            data = ollama_request(ollama_url, payload)
+        except (urllib.error.URLError, TimeoutError) as e:
+            return f"[error: {e}]"
+
+        msg = data.get("message", {})
+
+        # Structured tool calls
+        tool_calls = msg.get("tool_calls")
+        if tool_calls:
+            messages.append(msg)
+            for tc in tool_calls:
+                fn = tc.get("function", {})
+                result = dispatch_fn(
+                    fn.get("name", ""),
+                    fn.get("arguments", {}),
+                    round_num + 1,
+                )
+                if remaining <= 2:
+                    result += f"\n[warning: {remaining - 1} tool rounds remaining — wrap up]"
+                messages.append({"role": "tool", "content": result})
+            payload["messages"] = messages
+            continue
+
+        # Text-based tool calls
+        content = msg.get("content", "").strip()
+        parsed_tool = try_parse_tool_call(content)
+        if parsed_tool:
+            fn_name, fn_args = parsed_tool
+            if fn_name in skill_scripts:
+                messages.append({"role": "assistant", "content": content})
+                result = dispatch_fn(fn_name, fn_args, round_num + 1)
+                if remaining <= 2:
+                    result += f"\n[warning: {remaining - 1} tool rounds remaining — wrap up]"
+                messages.append({
+                    "role": "user",
+                    "content": f"Tool result:\n{result}\n\nNow respond to the user based on this result.",
+                })
+                payload["messages"] = messages
+                continue
+
+        return content
+
+    return "[max tool rounds reached]"