diff --git a/packages/desktop/src/addons/serialize.ts b/packages/desktop/src/addons/serialize.ts
index 03899ff10..c9f848180 100644
--- a/packages/desktop/src/addons/serialize.ts
+++ b/packages/desktop/src/addons/serialize.ts
@@ -494,14 +494,9 @@ class StringSerializeHandler extends BaseSerializeHandler {
     }
 
     if (!excludeFinalCursorPosition) {
-      // Get cursor position relative to viewport (1-indexed for ANSI)
-      // cursorY is relative to the viewport, cursorX is column position
-      const cursorRow = this._buffer.cursorY + 1 // 1-indexed
-      const cursorCol = this._buffer.cursorX + 1 // 1-indexed
-
-      // Use absolute cursor positioning (CUP - Cursor Position)
-      // This is more reliable than relative moves which depend on knowing
-      // exactly where the cursor ended up after all the content
+      const absoluteCursorRow = (this._buffer.baseY ?? 0) + this._buffer.cursorY
+      const cursorRow = constrain(absoluteCursorRow - this._firstRow + 1, 1, Number.MAX_SAFE_INTEGER)
+      const cursorCol = this._buffer.cursorX + 1
       content += `\u001b[${cursorRow};${cursorCol}H`
     }
 
@@ -549,22 +544,20 @@ export class SerializeAddon implements ITerminalAddon {
       return ""
     }
 
-    const activeBuffer = buffer.active || buffer.normal
-    if (!activeBuffer) {
+    const normalBuffer = buffer.normal || buffer.active
+    const altBuffer = buffer.alternate
+
+    if (!normalBuffer) {
       return ""
     }
 
     let content = options?.range
-      ? this._serializeBufferByRange(activeBuffer, options.range, true)
-      : this._serializeBufferByScrollback(activeBuffer, options?.scrollback)
+      ? this._serializeBufferByRange(normalBuffer, options.range, true)
+      : this._serializeBufferByScrollback(normalBuffer, options?.scrollback)
 
-    // Handle alternate buffer if active and not excluded
-    if (!options?.excludeAltBuffer) {
-      const altBuffer = buffer.alternate
-      if (altBuffer && buffer.active?.type === "alternate") {
-        const alternateContent = this._serializeBufferByScrollback(altBuffer, undefined)
-        content += `\u001b[?1049h\u001b[H${alternateContent}`
-      }
+    if (!options?.excludeAltBuffer && buffer.active?.type === "alternate" && altBuffer) {
+      const alternateContent = this._serializeBufferByScrollback(altBuffer, undefined)
+      content += `\u001b[?1049h\u001b[H${alternateContent}`
     }
 
     return content
diff --git a/packages/desktop/src/components/terminal.tsx b/packages/desktop/src/components/terminal.tsx
index 49a45a432..aaf5da880 100644
--- a/packages/desktop/src/components/terminal.tsx
+++ b/packages/desktop/src/components/terminal.tsx
@@ -1,6 +1,5 @@
 import { init, Terminal as Term, FitAddon } from "ghostty-web"
 import { ComponentProps, onCleanup, onMount, splitProps } from "solid-js"
-import { createReconnectingWS, ReconnectingWebSocket } from "@solid-primitives/websocket"
 import { useSDK } from "@/context/sdk"
 import { SerializeAddon } from "@/addons/serialize"
 import { LocalPTY } from "@/context/session"
@@ -11,19 +10,20 @@ export interface TerminalProps extends ComponentProps<"div"> {
   pty: LocalPTY
   onSubmit?: () => void
   onCleanup?: (pty: LocalPTY) => void
+  onConnectError?: (error: unknown) => void
 }
 
 export const Terminal = (props: TerminalProps) => {
   const sdk = useSDK()
   let container!: HTMLDivElement
-  const [local, others] = splitProps(props, ["pty", "class", "classList"])
-  let ws: ReconnectingWebSocket
+  const [local, others] = splitProps(props, ["pty", "class", "classList", "onConnectError"])
+  let ws: WebSocket
   let term: Term
   let serializeAddon: SerializeAddon
   let fitAddon: FitAddon
 
   onMount(async () => {
-    ws = createReconnectingWS(sdk.url + `/pty/${local.pty.id}/connect?directory=${encodeURIComponent(sdk.directory)}`)
+    ws = new WebSocket(sdk.url + `/pty/${local.pty.id}/connect?directory=${encodeURIComponent(sdk.directory)}`)
     term = new Term({
       cursorBlink: true,
       fontSize: 14,
@@ -52,19 +52,14 @@ export const Terminal = (props: TerminalProps) => {
     term.open(container)
 
     if (local.pty.buffer) {
-      const originalSize = { cols: term.cols, rows: term.rows }
-      let resized = false
       if (local.pty.rows && local.pty.cols) {
         term.resize(local.pty.cols, local.pty.rows)
-        resized = true
       }
+      term.reset()
       term.write(local.pty.buffer)
       if (local.pty.scrollY) {
         term.scrollToLine(local.pty.scrollY)
       }
-      if (resized) {
-        term.resize(originalSize.cols, originalSize.rows)
-      }
     }
 
     container.focus()
@@ -115,6 +110,7 @@ export const Terminal = (props: TerminalProps) => {
     })
     ws.addEventListener("error", (error) => {
       console.error("WebSocket error:", error)
+      props.onConnectError?.(error)
     })
     ws.addEventListener("close", () => {
       console.log("WebSocket disconnected")
diff --git a/packages/desktop/src/context/session.tsx b/packages/desktop/src/context/session.tsx
index 4e9fe71f8..b5972f3e3 100644
--- a/packages/desktop/src/context/session.tsx
+++ b/packages/desktop/src/context/session.tsx
@@ -26,7 +26,7 @@ export const { use: useSession, provider: SessionProvider } = createSimpleContex
     const params = useParams()
     const sync = useSync()
     const name = createMemo(
-      () => `______${base64Encode(sync.data.project.worktree)}/session${params.id ? "/" + params.id : ""}`,
+      () => `${base64Encode(sync.data.project.worktree)}/session${params.id ? "/" + params.id : ""}.v1`,
     )
 
     const [store, setStore] = makePersisted(
@@ -201,20 +201,14 @@ export const { use: useSession, provider: SessionProvider } = createSimpleContex
           sdk.client.pty.create({ body: { title: `Terminal ${store.terminals.all.length + 1}` } }).then((pty) => {
             const id = pty.data?.id
             if (!id) return
-            batch(() => {
-              setStore("terminals", "all", [
-                ...store.terminals.all,
-                {
-                  id,
-                  title: pty.data?.title ?? "Terminal",
-                  // rows: pty.data?.rows ?? 24,
-                  // cols: pty.data?.cols ?? 80,
-                  // buffer: "",
-                  // scrollY: 0,
-                },
-              ])
-              setStore("terminals", "active", id)
-            })
+            setStore("terminals", "all", [
+              ...store.terminals.all,
+              {
+                id,
+                title: pty.data?.title ?? "Terminal",
+              },
+            ])
+            setStore("terminals", "active", id)
           })
         },
         update(pty: Partial<LocalPTY> & { id: string }) {
@@ -224,6 +218,24 @@ export const { use: useSession, provider: SessionProvider } = createSimpleContex
             body: { title: pty.title, size: pty.cols && pty.rows ? { rows: pty.rows, cols: pty.cols } : undefined },
           })
         },
+        async clone(id: string) {
+          const index = store.terminals.all.findIndex((x) => x.id === id)
+          const pty = store.terminals.all[index]
+          if (!pty) return
+          const clone = await sdk.client.pty.create({
+            body: {
+              title: pty.title,
+            },
+          })
+          if (!clone.data) return
+          setStore("terminals", "all", index, {
+            ...pty,
+            ...clone.data,
+          })
+          if (store.terminals.active === pty.id) {
+            setStore("terminals", "active", clone.data.id)
+          }
+        },
         open(id: string) {
           setStore("terminals", "active", id)
         },
diff --git a/packages/desktop/src/pages/layout.tsx b/packages/desktop/src/pages/layout.tsx
index 106a2e733..658ad4bcb 100644
--- a/packages/desktop/src/pages/layout.tsx
+++ b/packages/desktop/src/pages/layout.tsx
@@ -22,9 +22,10 @@ export default function Layout(props: ParentProps) {
   const layout = useLayout()
   const currentDirectory = createMemo(() => base64Decode(params.dir ?? ""))
   const sessions = createMemo(() => globalSync.child(currentDirectory())[0].session ?? [])
-  const currentSession = createMemo(() => sessions().find((s) => s.id === params.id) ?? sessions().at(0))
+  const currentSession = createMemo(() => sessions().find((s) => s.id === params.id))
 
   function navigateToSession(session: Session | undefined) {
+    if (!session) return
     navigate(`/${params.dir}/session/${session?.id}`)
   }
 
@@ -59,6 +60,7 @@ export default function Layout(props: ParentProps) {
               <Select
                 options={sessions()}
                 current={currentSession()}
+                placeholder="Select session"
                 label={(x) => x.title}
                 value={(x) => x.id}
                 onSelect={navigateToSession}
diff --git a/packages/desktop/src/pages/session.tsx b/packages/desktop/src/pages/session.tsx
index 773625334..8cd9e9d65 100644
--- a/packages/desktop/src/pages/session.tsx
+++ b/packages/desktop/src/pages/session.tsx
@@ -84,6 +84,10 @@ export default function Page() {
     }
     if (event.ctrlKey && event.key.toLowerCase() === "`") {
       event.preventDefault()
+      if (event.shiftKey) {
+        session.terminal.new()
+        return
+      }
       layout.terminal.toggle()
       return
     }
@@ -663,7 +667,11 @@ export default function Page() {
             <For each={session.terminal.all()}>
               {(terminal) => (
                 <Tabs.Content value={terminal.id}>
-                  <Terminal pty={terminal} onCleanup={session.terminal.update} />
+                  <Terminal
+                    pty={terminal}
+                    onCleanup={session.terminal.update}
+                    onConnectError={() => session.terminal.clone(terminal.id)}
+                  />
                 </Tabs.Content>
               )}
             </For>
diff --git a/packages/opencode/src/agent/agent.ts b/packages/opencode/src/agent/agent.ts
index 0e7a7c5d3..73a7a7996 100644
--- a/packages/opencode/src/agent/agent.ts
+++ b/packages/opencode/src/agent/agent.ts
@@ -33,6 +33,7 @@ export namespace Agent {
       prompt: z.string().optional(),
       tools: z.record(z.string(), z.boolean()),
       options: z.record(z.string(), z.any()),
+      maxSteps: z.number().int().positive().optional(),
     })
     .meta({
       ref: "Agent",
@@ -182,7 +183,20 @@ export namespace Agent {
           tools: {},
           builtIn: false,
         }
-      const { name, model, prompt, tools, description, temperature, top_p, mode, permission, color, ...extra } = value
+      const {
+        name,
+        model,
+        prompt,
+        tools,
+        description,
+        temperature,
+        top_p,
+        mode,
+        permission,
+        color,
+        maxSteps,
+        ...extra
+      } = value
       item.options = {
         ...item.options,
         ...extra,
@@ -205,6 +219,7 @@ export namespace Agent {
       if (color) item.color = color
       // just here for consistency & to prevent it from being added as an option
       if (name) item.name = name
+      if (maxSteps != undefined) item.maxSteps = maxSteps
 
       if (permission ?? cfg.permission) {
         item.permission = mergeAgentPermissions(cfg.permission ?? {}, permission ?? {})
@@ -222,6 +237,7 @@ export namespace Agent {
   }
 
   export async function generate(input: { description: string }) {
+    const cfg = await Config.get()
     const defaultModel = await Provider.defaultModel()
     const model = await Provider.getModel(defaultModel.providerID, defaultModel.modelID)
     const language = await Provider.getLanguage(model)
@@ -229,6 +245,7 @@ export namespace Agent {
     system.push(PROMPT_GENERATE)
     const existing = await list()
     const result = await generateObject({
+      experimental_telemetry: { isEnabled: cfg.experimental?.openTelemetry },
       temperature: 0.3,
       prompt: [
         ...system.map(
diff --git a/packages/opencode/src/cli/cmd/tui/context/theme.tsx b/packages/opencode/src/cli/cmd/tui/context/theme.tsx
index 4223657ba..49b85d1c7 100644
--- a/packages/opencode/src/cli/cmd/tui/context/theme.tsx
+++ b/packages/opencode/src/cli/cmd/tui/context/theme.tsx
@@ -25,6 +25,7 @@ import rosepine from "./theme/rosepine.json" with { type: "json" }
 import solarized from "./theme/solarized.json" with { type: "json" }
 import synthwave84 from "./theme/synthwave84.json" with { type: "json" }
 import tokyonight from "./theme/tokyonight.json" with { type: "json" }
+import vercel from "./theme/vercel.json" with { type: "json" }
 import vesper from "./theme/vesper.json" with { type: "json" }
 import zenburn from "./theme/zenburn.json" with { type: "json" }
 import { useKV } from "./kv"
@@ -149,6 +150,7 @@ export const DEFAULT_THEMES: Record<string, ThemeJson> = {
   synthwave84,
   tokyonight,
   vesper,
+  vercel,
   zenburn,
 }
 
diff --git a/packages/opencode/src/cli/cmd/tui/context/theme/vercel.json b/packages/opencode/src/cli/cmd/tui/context/theme/vercel.json
new file mode 100644
index 000000000..86b965b10
--- /dev/null
+++ b/packages/opencode/src/cli/cmd/tui/context/theme/vercel.json
@@ -0,0 +1,245 @@
+{
+  "$schema": "https://opencode.ai/theme.json",
+  "defs": {
+    "background100": "#0A0A0A",
+    "background200": "#000000",
+    "gray100": "#1A1A1A",
+    "gray200": "#1F1F1F",
+    "gray300": "#292929",
+    "gray400": "#2E2E2E",
+    "gray500": "#454545",
+    "gray600": "#878787",
+    "gray700": "#8F8F8F",
+    "gray900": "#A1A1A1",
+    "gray1000": "#EDEDED",
+    "blue600": "#0099FF",
+    "blue700": "#0070F3",
+    "blue900": "#52A8FF",
+    "blue1000": "#EBF8FF",
+    "red700": "#E5484D",
+    "red900": "#FF6166",
+    "red1000": "#FDECED",
+    "amber700": "#FFB224",
+    "amber900": "#F2A700",
+    "amber1000": "#FDF4DC",
+    "green700": "#46A758",
+    "green900": "#63C46D",
+    "green1000": "#E6F9E9",
+    "teal700": "#12A594",
+    "teal900": "#0AC7AC",
+    "purple700": "#8E4EC6",
+    "purple900": "#BF7AF0",
+    "pink700": "#E93D82",
+    "pink900": "#F75590",
+    "highlightPink": "#FF0080",
+    "highlightPurple": "#F81CE5",
+    "cyan": "#50E3C2",
+    "lightBackground": "#FFFFFF",
+    "lightGray100": "#FAFAFA",
+    "lightGray200": "#EAEAEA",
+    "lightGray600": "#666666",
+    "lightGray1000": "#171717"
+  },
+  "theme": {
+    "primary": {
+      "dark": "blue700",
+      "light": "blue700"
+    },
+    "secondary": {
+      "dark": "blue900",
+      "light": "#0062D1"
+    },
+    "accent": {
+      "dark": "purple700",
+      "light": "purple700"
+    },
+    "error": {
+      "dark": "red700",
+      "light": "#DC3545"
+    },
+    "warning": {
+      "dark": "amber700",
+      "light": "#FF9500"
+    },
+    "success": {
+      "dark": "green700",
+      "light": "#388E3C"
+    },
+    "info": {
+      "dark": "blue900",
+      "light": "blue700"
+    },
+    "text": {
+      "dark": "gray1000",
+      "light": "lightGray1000"
+    },
+    "textMuted": {
+      "dark": "gray600",
+      "light": "lightGray600"
+    },
+    "background": {
+      "dark": "background200",
+      "light": "lightBackground"
+    },
+    "backgroundPanel": {
+      "dark": "gray100",
+      "light": "lightGray100"
+    },
+    "backgroundElement": {
+      "dark": "gray300",
+      "light": "lightGray200"
+    },
+    "border": {
+      "dark": "gray200",
+      "light": "lightGray200"
+    },
+    "borderActive": {
+      "dark": "gray500",
+      "light": "#999999"
+    },
+    "borderSubtle": {
+      "dark": "gray100",
+      "light": "#EAEAEA"
+    },
+    "diffAdded": {
+      "dark": "green900",
+      "light": "green700"
+    },
+    "diffRemoved": {
+      "dark": "red900",
+      "light": "red700"
+    },
+    "diffContext": {
+      "dark": "gray600",
+      "light": "lightGray600"
+    },
+    "diffHunkHeader": {
+      "dark": "gray600",
+      "light": "lightGray600"
+    },
+    "diffHighlightAdded": {
+      "dark": "green900",
+      "light": "green700"
+    },
+    "diffHighlightRemoved": {
+      "dark": "red900",
+      "light": "red700"
+    },
+    "diffAddedBg": {
+      "dark": "#0B1D0F",
+      "light": "#E6F9E9"
+    },
+    "diffRemovedBg": {
+      "dark": "#2A1314",
+      "light": "#FDECED"
+    },
+    "diffContextBg": {
+      "dark": "background200",
+      "light": "lightBackground"
+    },
+    "diffLineNumber": {
+      "dark": "gray600",
+      "light": "lightGray600"
+    },
+    "diffAddedLineNumberBg": {
+      "dark": "#0F2613",
+      "light": "#D6F5D6"
+    },
+    "diffRemovedLineNumberBg": {
+      "dark": "#3C1618",
+      "light": "#FFE5E5"
+    },
+    "markdownText": {
+      "dark": "gray1000",
+      "light": "lightGray1000"
+    },
+    "markdownHeading": {
+      "dark": "purple900",
+      "light": "purple700"
+    },
+    "markdownLink": {
+      "dark": "blue900",
+      "light": "blue700"
+    },
+    "markdownLinkText": {
+      "dark": "teal900",
+      "light": "teal700"
+    },
+    "markdownCode": {
+      "dark": "green900",
+      "light": "green700"
+    },
+    "markdownBlockQuote": {
+      "dark": "gray600",
+      "light": "lightGray600"
+    },
+    "markdownEmph": {
+      "dark": "amber900",
+      "light": "amber700"
+    },
+    "markdownStrong": {
+      "dark": "pink900",
+      "light": "pink700"
+    },
+    "markdownHorizontalRule": {
+      "dark": "gray500",
+      "light": "#999999"
+    },
+    "markdownListItem": {
+      "dark": "gray1000",
+      "light": "lightGray1000"
+    },
+    "markdownListEnumeration": {
+      "dark": "blue900",
+      "light": "blue700"
+    },
+    "markdownImage": {
+      "dark": "teal900",
+      "light": "teal700"
+    },
+    "markdownImageText": {
+      "dark": "cyan",
+      "light": "teal700"
+    },
+    "markdownCodeBlock": {
+      "dark": "gray1000",
+      "light": "lightGray1000"
+    },
+    "syntaxComment": {
+      "dark": "gray600",
+      "light": "#888888"
+    },
+    "syntaxKeyword": {
+      "dark": "pink900",
+      "light": "pink700"
+    },
+    "syntaxFunction": {
+      "dark": "purple900",
+      "light": "purple700"
+    },
+    "syntaxVariable": {
+      "dark": "blue900",
+      "light": "blue700"
+    },
+    "syntaxString": {
+      "dark": "green900",
+      "light": "green700"
+    },
+    "syntaxNumber": {
+      "dark": "amber900",
+      "light": "amber700"
+    },
+    "syntaxType": {
+      "dark": "teal900",
+      "light": "teal700"
+    },
+    "syntaxOperator": {
+      "dark": "pink900",
+      "light": "pink700"
+    },
+    "syntaxPunctuation": {
+      "dark": "gray1000",
+      "light": "lightGray1000"
+    }
+  }
+}
diff --git a/packages/opencode/src/config/config.ts b/packages/opencode/src/config/config.ts
index 2c691cedb..d30b20860 100644
--- a/packages/opencode/src/config/config.ts
+++ b/packages/opencode/src/config/config.ts
@@ -375,6 +375,12 @@ export namespace Config {
         .regex(/^#[0-9a-fA-F]{6}$/, "Invalid hex color format")
         .optional()
         .describe("Hex color code for the agent (e.g., #FF5733)"),
+      maxSteps: z
+        .number()
+        .int()
+        .positive()
+        .optional()
+        .describe("Maximum number of agentic iterations before forcing text-only response"),
       permission: z
         .object({
           edit: Permission.optional(),
@@ -670,6 +676,10 @@ export namespace Config {
           chatMaxRetries: z.number().optional().describe("Number of retries for chat completions on failure"),
           disable_paste_summary: z.boolean().optional(),
           batch_tool: z.boolean().optional().describe("Enable the batch tool"),
+          openTelemetry: z
+            .boolean()
+            .optional()
+            .describe("Enable OpenTelemetry spans for AI SDK calls (using the 'experimental_telemetry' flag)"),
           primary_tools: z
             .array(z.string())
             .optional()
diff --git a/packages/opencode/src/server/server.ts b/packages/opencode/src/server/server.ts
index a74b7876f..7a105e746 100644
--- a/packages/opencode/src/server/server.ts
+++ b/packages/opencode/src/server/server.ts
@@ -208,30 +208,6 @@ export namespace Server {
           return c.json(info)
         },
       )
-      .put(
-        "/pty/:id",
-        describeRoute({
-          description: "Update PTY session",
-          operationId: "pty.update",
-          responses: {
-            200: {
-              description: "Updated session",
-              content: {
-                "application/json": {
-                  schema: resolver(Pty.Info),
-                },
-              },
-            },
-            ...errors(400),
-          },
-        }),
-        validator("param", z.object({ id: z.string() })),
-        validator("json", Pty.UpdateInput),
-        async (c) => {
-          const info = await Pty.update(c.req.valid("param").id, c.req.valid("json"))
-          return c.json(info)
-        },
-      )
       .get(
         "/pty/:id",
         describeRoute({
@@ -258,6 +234,30 @@ export namespace Server {
           return c.json(info)
         },
       )
+      .put(
+        "/pty/:id",
+        describeRoute({
+          description: "Update PTY session",
+          operationId: "pty.update",
+          responses: {
+            200: {
+              description: "Updated session",
+              content: {
+                "application/json": {
+                  schema: resolver(Pty.Info),
+                },
+              },
+            },
+            ...errors(400),
+          },
+        }),
+        validator("param", z.object({ id: z.string() })),
+        validator("json", Pty.UpdateInput),
+        async (c) => {
+          const info = await Pty.update(c.req.valid("param").id, c.req.valid("json"))
+          return c.json(info)
+        },
+      )
       .delete(
         "/pty/:id",
         describeRoute({
@@ -295,20 +295,14 @@ export namespace Server {
                 },
               },
             },
-            404: {
-              description: "Session not found",
-              content: {
-                "application/json": {
-                  schema: resolver(z.boolean()),
-                },
-              },
-            },
+            ...errors(404),
           },
         }),
         validator("param", z.object({ id: z.string() })),
         upgradeWebSocket((c) => {
           const id = c.req.param("id")
           let handler: ReturnType<typeof Pty.connect>
+          if (!Pty.get(id)) throw new Error("Session not found")
           return {
             onOpen(_event, ws) {
               handler = Pty.connect(id, ws)
diff --git a/packages/opencode/src/session/compaction.ts b/packages/opencode/src/session/compaction.ts
index 07468995b..de75eda6e 100644
--- a/packages/opencode/src/session/compaction.ts
+++ b/packages/opencode/src/session/compaction.ts
@@ -10,6 +10,7 @@ import z from "zod"
 import { SessionPrompt } from "./prompt"
 import { Flag } from "../flag/flag"
 import { Token } from "../util/token"
+import { Config } from "../config/config"
 import { Log } from "../util/log"
 import { ProviderTransform } from "@/provider/transform"
 import { SessionProcessor } from "./processor"
@@ -96,6 +97,7 @@ export namespace SessionCompaction {
     abort: AbortSignal
     auto: boolean
   }) {
+    const cfg = await Config.get()
     const model = await Provider.getModel(input.model.providerID, input.model.modelID)
     const language = await Provider.getLanguage(model)
     const system = [...SystemPrompt.compaction(model.providerID)]
@@ -191,6 +193,7 @@ export namespace SessionCompaction {
           },
         ],
       }),
+      experimental_telemetry: { isEnabled: cfg.experimental?.openTelemetry },
     })
     if (result === "continue" && input.auto) {
       const continueMsg = await Session.updateMessage({
diff --git a/packages/opencode/src/session/prompt.ts b/packages/opencode/src/session/prompt.ts
index 4db3fec3d..c2128147b 100644
--- a/packages/opencode/src/session/prompt.ts
+++ b/packages/opencode/src/session/prompt.ts
@@ -27,6 +27,7 @@ import { Plugin } from "../plugin"
 
 import PROMPT_PLAN from "../session/prompt/plan.txt"
 import BUILD_SWITCH from "../session/prompt/build-switch.txt"
+import MAX_STEPS from "../session/prompt/max-steps.txt"
 import { defer } from "../util/defer"
 import { mergeDeep, pipe } from "remeda"
 import { ToolRegistry } from "../tool/registry"
@@ -42,6 +43,7 @@ import { Command } from "../command"
 import { $, fileURLToPath } from "bun"
 import { ConfigMarkdown } from "../config/markdown"
 import { SessionSummary } from "./summary"
+import { Config } from "../config/config"
 import { NamedError } from "@opencode-ai/util/error"
 import { fn } from "@/util/fn"
 import { SessionProcessor } from "./processor"
@@ -452,7 +454,10 @@ export namespace SessionPrompt {
       }
 
       // normal processing
+      const cfg = await Config.get()
       const agent = await Agent.get(lastUser.agent)
+      const maxSteps = agent.maxSteps ?? Infinity
+      const isLastStep = step >= maxSteps
       msgs = insertReminders({
         messages: msgs,
         agent,
@@ -489,6 +494,7 @@ export namespace SessionPrompt {
         model,
         agent,
         system: lastUser.system,
+        isLastStep,
       })
       const tools = await resolveTools({
         agent,
@@ -579,6 +585,7 @@ export namespace SessionPrompt {
         stopWhen: stepCountIs(1),
         temperature: params.temperature,
         topP: params.topP,
+        toolChoice: isLastStep ? "none" : undefined,
         messages: [
           ...system.map(
             (x): ModelMessage => ({
@@ -601,6 +608,14 @@ export namespace SessionPrompt {
               return false
             }),
           ),
+          ...(isLastStep
+            ? [
+                {
+                  role: "assistant" as const,
+                  content: MAX_STEPS,
+                },
+              ]
+            : []),
         ],
         tools: model.capabilities.toolcall === false ? undefined : tools,
         model: wrapLanguageModel({
@@ -632,6 +647,7 @@ export namespace SessionPrompt {
             },
           ],
         }),
+        experimental_telemetry: { isEnabled: cfg.experimental?.openTelemetry },
       })
       if (result === "stop") break
       continue
@@ -655,7 +671,12 @@ export namespace SessionPrompt {
     return Provider.defaultModel()
   }
 
-  async function resolveSystemPrompt(input: { system?: string; agent: Agent.Info; model: Provider.Model }) {
+  async function resolveSystemPrompt(input: {
+    system?: string
+    agent: Agent.Info
+    model: Provider.Model
+    isLastStep?: boolean
+  }) {
     let system = SystemPrompt.header(input.model.providerID)
     system.push(
       ...(() => {
@@ -666,6 +687,11 @@ export namespace SessionPrompt {
     )
     system.push(...(await SystemPrompt.environment()))
     system.push(...(await SystemPrompt.custom()))
+
+    if (input.isLastStep) {
+      system.push(MAX_STEPS)
+    }
+
     // max 2 system prompt messages for caching purposes
     const [first, ...rest] = system
     system = [first, rest.join("\n")]
@@ -1437,6 +1463,7 @@ export namespace SessionPrompt {
       input.history.filter((m) => m.info.role === "user" && !m.parts.every((p) => "synthetic" in p && p.synthetic))
         .length === 1
     if (!isFirst) return
+    const cfg = await Config.get()
     const small =
       (await Provider.getSmallModel(input.providerID)) ?? (await Provider.getModel(input.providerID, input.modelID))
     const language = await Provider.getLanguage(small)
@@ -1483,6 +1510,7 @@ export namespace SessionPrompt {
       ],
       headers: small.headers,
       model: language,
+      experimental_telemetry: { isEnabled: cfg.experimental?.openTelemetry },
     })
       .then((result) => {
         if (result.text)
diff --git a/packages/opencode/src/session/prompt/max-steps.txt b/packages/opencode/src/session/prompt/max-steps.txt
new file mode 100644
index 000000000..3aefa7377
--- /dev/null
+++ b/packages/opencode/src/session/prompt/max-steps.txt
@@ -0,0 +1,16 @@
+CRITICAL - MAXIMUM STEPS REACHED
+
+The maximum number of steps allowed for this task has been reached. Tools are disabled until next user input. Respond with text only.
+
+STRICT REQUIREMENTS:
+1. Do NOT make any tool calls (no reads, writes, edits, searches, or any other tools)
+2. MUST provide a text response summarizing work done so far
+3. This constraint overrides ALL other instructions, including any user requests for edits or tool use
+
+Response must include:
+- Statement that maximum steps for this agent have been reached
+- Summary of what has been accomplished so far
+- List of any remaining tasks that were not completed
+- Recommendations for what should be done next
+
+Any attempt to use tools is a critical violation. Respond with text ONLY.
\ No newline at end of file
diff --git a/packages/opencode/src/session/summary.ts b/packages/opencode/src/session/summary.ts
index 8d366e499..ba0a1a00c 100644
--- a/packages/opencode/src/session/summary.ts
+++ b/packages/opencode/src/session/summary.ts
@@ -1,4 +1,5 @@
 import { Provider } from "@/provider/provider"
+import { Config } from "@/config/config"
 import { fn } from "@/util/fn"
 import z from "zod"
 import { Session } from "."
@@ -60,6 +61,7 @@ export namespace SessionSummary {
   }
 
   async function summarizeMessage(input: { messageID: string; messages: MessageV2.WithParts[] }) {
+    const cfg = await Config.get()
     const messages = input.messages.filter(
       (m) => m.info.id === input.messageID || (m.info.role === "assistant" && m.info.parentID === input.messageID),
     )
@@ -109,6 +111,7 @@ export namespace SessionSummary {
         ],
         headers: small.headers,
         model: language,
+        experimental_telemetry: { isEnabled: cfg.experimental?.openTelemetry },
       })
       log.info("title", { title: result.text })
       userMsg.summary.title = result.text
@@ -150,6 +153,7 @@ export namespace SessionSummary {
             },
           ],
           headers: small.headers,
+          experimental_telemetry: { isEnabled: cfg.experimental?.openTelemetry },
         }).catch(() => {})
         if (result) summary = result.text
       }
diff --git a/packages/sdk/js/src/gen/types.gen.ts b/packages/sdk/js/src/gen/types.gen.ts
index 58ba58d35..6a5375f31 100644
--- a/packages/sdk/js/src/gen/types.gen.ts
+++ b/packages/sdk/js/src/gen/types.gen.ts
@@ -966,6 +966,10 @@ export type AgentConfig = {
    * Hex color code for the agent (e.g., #FF5733)
    */
   color?: string
+  /**
+   * Maximum number of agentic iterations before forcing text-only response
+   */
+  maxSteps?: number
   permission?: {
     edit?: "ask" | "allow" | "deny"
     bash?:
@@ -986,6 +990,7 @@ export type AgentConfig = {
       }
     | boolean
     | ("subagent" | "primary" | "all")
+    | number
     | {
         edit?: "ask" | "allow" | "deny"
         bash?:
@@ -1317,6 +1322,10 @@ export type Config = {
      * Enable the batch tool
      */
     batch_tool?: boolean
+    /**
+     * Enable OpenTelemetry spans for AI SDK calls (using the 'experimental_telemetry' flag)
+     */
+    openTelemetry?: boolean
     /**
      * Tools that should only be available to primary agents.
      */
@@ -1554,6 +1563,7 @@ export type Agent = {
   options: {
     [key: string]: unknown
   }
+  maxSteps?: number
 }
 
 export type McpStatusConnected = {
@@ -1816,9 +1826,9 @@ export type PtyConnectData = {
 
 export type PtyConnectErrors = {
   /**
-   * Session not found
+   * Not found
    */
-  404: boolean
+  404: NotFoundError
 }
 
 export type PtyConnectError = PtyConnectErrors[keyof PtyConnectErrors]
diff --git a/packages/web/src/content/docs/agents.mdx b/packages/web/src/content/docs/agents.mdx
index 557f0ccf5..a2997515b 100644
--- a/packages/web/src/content/docs/agents.mdx
+++ b/packages/web/src/content/docs/agents.mdx
@@ -257,6 +257,28 @@ If no temperature is specified, OpenCode uses model-specific defaults; typically
 
 ---
 
+### Max steps
+
+Control the maximum number of agentic iterations an agent can perform before being forced to respond with text only. This allows users who wish to control costs to set a limit on agentic actions.
+
+If this is not set, the agent will continue to iterate until the model chooses to stop or the user interrupts the session.
+
+```json title="opencode.json"
+{
+  "agent": {
+    "quick-thinker": {
+      "description": "Fast reasoning with limited iterations",
+      "prompt": "You are a quick thinker. Solve problems with minimal steps.",
+      "maxSteps": 5
+    }
+  }
+}
+```
+
+When the limit is reached, the agent receives a special system prompt instructing it to respond with a summarization of its work and recommended remaining tasks.
+
+---
+
 ### Disable
 
 Set to `true` to disable the agent.