diff --git a/codex-rs/app-server/src/bespoke_event_handling.rs b/codex-rs/app-server/src/bespoke_event_handling.rs
index 1f2f289b05..b4348f53bd 100644
--- a/codex-rs/app-server/src/bespoke_event_handling.rs
+++ b/codex-rs/app-server/src/bespoke_event_handling.rs
@@ -49,7 +49,6 @@ use codex_app_server_protocol::RawResponseItemCompletedNotification;
 use codex_app_server_protocol::RequestId;
 use codex_app_server_protocol::ServerNotification;
 use codex_app_server_protocol::ServerRequestPayload;
-use codex_app_server_protocol::SkillsChangedNotification;
 use codex_app_server_protocol::ThreadGoalUpdatedNotification;
 use codex_app_server_protocol::ThreadItem;
 use codex_app_server_protocol::ThreadRealtimeClosedNotification;
@@ -194,13 +193,6 @@ pub(crate) async fn apply_bespoke_event_handling(
             )
             .await;
         }
-        EventMsg::SkillsUpdateAvailable => {
-            outgoing
-                .send_server_notification(ServerNotification::SkillsChanged(
-                    SkillsChangedNotification {},
-                ))
-                .await;
-        }
         EventMsg::McpStartupUpdate(update) => {
             let (status, error) = match update.status {
                 codex_protocol::protocol::McpStartupStatus::Starting => {
diff --git a/codex-rs/app-server/src/lib.rs b/codex-rs/app-server/src/lib.rs
index dea4a20e5a..6999948b04 100644
--- a/codex-rs/app-server/src/lib.rs
+++ b/codex-rs/app-server/src/lib.rs
@@ -94,6 +94,7 @@ mod outgoing_message;
 mod request_processors;
 mod request_serialization;
 mod server_request_error;
+mod skills_watcher;
 mod thread_state;
 mod thread_status;
 mod transport;
diff --git a/codex-rs/app-server/src/message_processor.rs b/codex-rs/app-server/src/message_processor.rs
index 3853244958..c8204e05b6 100644
--- a/codex-rs/app-server/src/message_processor.rs
+++ b/codex-rs/app-server/src/message_processor.rs
@@ -36,6 +36,7 @@ use crate::request_processors::WindowsSandboxRequestProcessor;
 use crate::request_serialization::QueuedInitializedRequest;
 use crate::request_serialization::RequestSerializationQueueKey;
 use crate::request_serialization::RequestSerializationQueues;
+use crate::skills_watcher::SkillsWatcher;
 use crate::thread_state::ConnectionCapabilities;
 use crate::thread_state::ThreadStateManager;
 use crate::transport::AppServerTransport;
@@ -314,6 +315,7 @@ impl MessageProcessor {
         thread_manager
             .plugins_manager()
             .set_analytics_events_client(analytics_events_client.clone());
+        let skills_watcher = SkillsWatcher::new(thread_manager.skills_manager(), outgoing.clone());
 
         let pending_thread_unloads = Arc::new(Mutex::new(HashSet::new()));
         let thread_watch_manager =
@@ -405,6 +407,7 @@ impl MessageProcessor {
             Arc::clone(&thread_list_state_permit),
             thread_goal_processor.clone(),
             state_db,
+            Arc::clone(&skills_watcher),
         );
         let turn_processor = TurnRequestProcessor::new(
             auth_manager.clone(),
@@ -418,6 +421,7 @@ impl MessageProcessor {
             thread_state_manager,
             thread_watch_manager,
             thread_list_state_permit,
+            Arc::clone(&skills_watcher),
         );
         if matches!(plugin_startup_tasks, crate::PluginStartupTasks::Start) {
             // Keep plugin startup warmups aligned at app-server startup.
diff --git a/codex-rs/app-server/src/request_processors.rs b/codex-rs/app-server/src/request_processors.rs
index 284d0fa1ff..9de844c6cd 100644
--- a/codex-rs/app-server/src/request_processors.rs
+++ b/codex-rs/app-server/src/request_processors.rs
@@ -11,6 +11,7 @@ use crate::outgoing_message::ConnectionRequestId;
 use crate::outgoing_message::OutgoingMessageSender;
 use crate::outgoing_message::RequestContext;
 use crate::outgoing_message::ThreadScopedOutgoingMessageSender;
+use crate::skills_watcher::SkillsWatcher;
 use crate::thread_status::ThreadWatchManager;
 use crate::thread_status::resolve_thread_status;
 use chrono::Duration as ChronoDuration;
diff --git a/codex-rs/app-server/src/request_processors/thread_lifecycle.rs b/codex-rs/app-server/src/request_processors/thread_lifecycle.rs
index ef44a2b178..45031490b0 100644
--- a/codex-rs/app-server/src/request_processors/thread_lifecycle.rs
+++ b/codex-rs/app-server/src/request_processors/thread_lifecycle.rs
@@ -12,6 +12,7 @@ pub(super) struct ListenerTaskContext {
     pub(super) thread_list_state_permit: Arc<Semaphore>,
     pub(super) fallback_model_provider: String,
     pub(super) codex_home: PathBuf,
+    pub(super) skills_watcher: Arc<SkillsWatcher>,
 }
 
 struct UnloadingState {
@@ -226,12 +227,22 @@ pub(super) async fn ensure_listener_task_running(
             "thread {conversation_id} is closing; retry after the thread is closed"
         )));
     };
+    let config = conversation.config().await;
+    let environments = conversation.environment_selections().await;
+    let watch_registration = listener_task_context
+        .skills_watcher
+        .register_thread_config(
+            config.as_ref(),
+            listener_task_context.thread_manager.as_ref(),
+            &environments,
+        )
+        .await;
     let (mut listener_command_rx, listener_generation) = {
         let mut thread_state = thread_state.lock().await;
         if thread_state.listener_matches(&conversation) {
             return Ok(());
         }
-        thread_state.set_listener(cancel_tx, &conversation)
+        thread_state.set_listener(cancel_tx, &conversation, watch_registration)
     };
     let ListenerTaskContext {
         outgoing,
@@ -242,6 +253,7 @@ pub(super) async fn ensure_listener_task_running(
         thread_list_state_permit,
         fallback_model_provider,
         codex_home,
+        ..
     } = listener_task_context;
     let outgoing_for_task = Arc::clone(&outgoing);
     tokio::spawn(async move {
diff --git a/codex-rs/app-server/src/request_processors/thread_processor.rs b/codex-rs/app-server/src/request_processors/thread_processor.rs
index 015ae5daf6..132a03afde 100644
--- a/codex-rs/app-server/src/request_processors/thread_processor.rs
+++ b/codex-rs/app-server/src/request_processors/thread_processor.rs
@@ -317,6 +317,7 @@ pub(crate) struct ThreadRequestProcessor {
     pub(super) thread_goal_processor: ThreadGoalRequestProcessor,
     pub(super) state_db: Option<StateDbHandle>,
     pub(super) background_tasks: TaskTracker,
+    pub(super) skills_watcher: Arc<SkillsWatcher>,
 }
 
 impl ThreadRequestProcessor {
@@ -335,6 +336,7 @@ impl ThreadRequestProcessor {
         thread_list_state_permit: Arc<Semaphore>,
         thread_goal_processor: ThreadGoalRequestProcessor,
         state_db: Option<StateDbHandle>,
+        skills_watcher: Arc<SkillsWatcher>,
     ) -> Self {
         Self {
             auth_manager,
@@ -351,6 +353,7 @@ impl ThreadRequestProcessor {
             thread_goal_processor,
             state_db,
             background_tasks: TaskTracker::new(),
+            skills_watcher,
         }
     }
 
@@ -752,6 +755,7 @@ impl ThreadRequestProcessor {
             thread_list_state_permit: self.thread_list_state_permit.clone(),
             fallback_model_provider: self.config.model_provider_id.clone(),
             codex_home: self.config.codex_home.to_path_buf(),
+            skills_watcher: Arc::clone(&self.skills_watcher),
         }
     }
 
@@ -849,6 +853,7 @@ impl ThreadRequestProcessor {
             thread_list_state_permit: self.thread_list_state_permit.clone(),
             fallback_model_provider: self.config.model_provider_id.clone(),
             codex_home: self.config.codex_home.to_path_buf(),
+            skills_watcher: Arc::clone(&self.skills_watcher),
         };
         let request_trace = request_context.request_trace();
         let config_manager = self.config_manager.clone();
@@ -1049,7 +1054,6 @@ impl ThreadRequestProcessor {
                 .collect()
         };
         let core_dynamic_tool_count = core_dynamic_tools.len();
-
         let NewThread {
             thread_id,
             thread,
diff --git a/codex-rs/app-server/src/request_processors/turn_processor.rs b/codex-rs/app-server/src/request_processors/turn_processor.rs
index bdc5847b0d..d1dae4ef46 100644
--- a/codex-rs/app-server/src/request_processors/turn_processor.rs
+++ b/codex-rs/app-server/src/request_processors/turn_processor.rs
@@ -13,6 +13,7 @@ pub(crate) struct TurnRequestProcessor {
     thread_state_manager: ThreadStateManager,
     thread_watch_manager: ThreadWatchManager,
     thread_list_state_permit: Arc<Semaphore>,
+    skills_watcher: Arc<SkillsWatcher>,
 }
 
 impl TurnRequestProcessor {
@@ -29,6 +30,7 @@ impl TurnRequestProcessor {
         thread_state_manager: ThreadStateManager,
         thread_watch_manager: ThreadWatchManager,
         thread_list_state_permit: Arc<Semaphore>,
+        skills_watcher: Arc<SkillsWatcher>,
     ) -> Self {
         Self {
             auth_manager,
@@ -42,6 +44,7 @@ impl TurnRequestProcessor {
             thread_state_manager,
             thread_watch_manager,
             thread_list_state_permit,
+            skills_watcher,
         }
     }
 
@@ -1087,6 +1090,7 @@ impl TurnRequestProcessor {
             thread_list_state_permit: self.thread_list_state_permit.clone(),
             fallback_model_provider: self.config.model_provider_id.clone(),
             codex_home: self.config.codex_home.to_path_buf(),
+            skills_watcher: Arc::clone(&self.skills_watcher),
         }
     }
 
diff --git a/codex-rs/app-server/src/skills_watcher.rs b/codex-rs/app-server/src/skills_watcher.rs
new file mode 100644
index 0000000000..33acf65335
--- /dev/null
+++ b/codex-rs/app-server/src/skills_watcher.rs
@@ -0,0 +1,112 @@
+use std::sync::Arc;
+use std::time::Duration;
+
+use crate::outgoing_message::OutgoingMessageSender;
+use codex_app_server_protocol::ServerNotification;
+use codex_app_server_protocol::SkillsChangedNotification;
+use codex_core::ThreadManager;
+use codex_core::config::Config;
+use codex_core::file_watcher::FileWatcher;
+use codex_core::file_watcher::FileWatcherSubscriber;
+use codex_core::file_watcher::Receiver;
+use codex_core::file_watcher::ThrottledWatchReceiver;
+use codex_core::file_watcher::WatchPath;
+use codex_core::file_watcher::WatchRegistration;
+use codex_core::skills::SkillsLoadInput;
+use codex_core::skills::SkillsManager;
+use codex_protocol::protocol::TurnEnvironmentSelection;
+use tracing::warn;
+
+#[cfg(not(test))]
+const WATCHER_THROTTLE_INTERVAL: Duration = Duration::from_secs(10);
+#[cfg(test)]
+const WATCHER_THROTTLE_INTERVAL: Duration = Duration::from_millis(50);
+
+pub(crate) struct SkillsWatcher {
+    subscriber: FileWatcherSubscriber,
+}
+
+impl SkillsWatcher {
+    pub(crate) fn new(
+        skills_manager: Arc<SkillsManager>,
+        outgoing: Arc<OutgoingMessageSender>,
+    ) -> Arc<Self> {
+        let file_watcher = match FileWatcher::new() {
+            Ok(file_watcher) => Arc::new(file_watcher),
+            Err(err) => {
+                warn!("failed to initialize skills file watcher: {err}");
+                Arc::new(FileWatcher::noop())
+            }
+        };
+        let (subscriber, rx) = file_watcher.add_subscriber();
+        Self::spawn_event_loop(rx, skills_manager, outgoing);
+        Arc::new(Self { subscriber })
+    }
+
+    pub(crate) async fn register_thread_config(
+        &self,
+        config: &Config,
+        thread_manager: &ThreadManager,
+        environments: &[TurnEnvironmentSelection],
+    ) -> WatchRegistration {
+        let Some(environment_selection) = environments.first() else {
+            return WatchRegistration::default();
+        };
+        let Some(environment) = thread_manager
+            .environment_manager()
+            .get_environment(&environment_selection.environment_id)
+        else {
+            warn!(
+                "failed to register skills watcher for unknown environment `{}`",
+                environment_selection.environment_id
+            );
+            return WatchRegistration::default();
+        };
+        if environment.is_remote() {
+            return WatchRegistration::default();
+        }
+
+        let plugins_input = config.plugins_config_input();
+        let plugins_manager = thread_manager.plugins_manager();
+        let plugin_outcome = plugins_manager.plugins_for_config(&plugins_input).await;
+        let skills_input = SkillsLoadInput::new(
+            config.cwd.clone(),
+            plugin_outcome.effective_plugin_skill_roots(),
+            config.config_layer_stack.clone(),
+            config.bundled_skills_enabled(),
+        );
+        let roots = thread_manager
+            .skills_manager()
+            .skill_roots_for_config(&skills_input, Some(environment.get_filesystem()))
+            .await
+            .into_iter()
+            .map(|root| WatchPath {
+                path: root.path.into_path_buf(),
+                recursive: true,
+            })
+            .collect();
+        self.subscriber.register_paths(roots)
+    }
+
+    fn spawn_event_loop(
+        rx: Receiver,
+        skills_manager: Arc<SkillsManager>,
+        outgoing: Arc<OutgoingMessageSender>,
+    ) {
+        let mut rx = ThrottledWatchReceiver::new(rx, WATCHER_THROTTLE_INTERVAL);
+        let Ok(handle) = tokio::runtime::Handle::try_current() else {
+            warn!("skills watcher listener skipped: no Tokio runtime available");
+            return;
+        };
+        handle.spawn(async move {
+            while rx.recv().await.is_some() {
+                skills_manager.clear_cache();
+                outgoing
+                    .send_server_notification(ServerNotification::SkillsChanged(
+                        SkillsChangedNotification {},
+                    ))
+                    .await;
+            }
+        });
+    }
+}
diff --git a/codex-rs/app-server/src/thread_state.rs b/codex-rs/app-server/src/thread_state.rs
index 82871fca8b..f31257e8cf 100644
--- a/codex-rs/app-server/src/thread_state.rs
+++ b/codex-rs/app-server/src/thread_state.rs
@@ -7,6 +7,7 @@ use codex_app_server_protocol::Turn;
 use codex_app_server_protocol::TurnError;
 use codex_core::CodexThread;
 use codex_core::ThreadConfigSnapshot;
+use codex_core::file_watcher::WatchRegistration;
 use codex_protocol::ThreadId;
 use codex_protocol::protocol::EventMsg;
 use codex_protocol::protocol::RolloutItem;
@@ -77,6 +78,7 @@ pub(crate) struct ThreadState {
     listener_command_tx: Option<mpsc::UnboundedSender<ThreadListenerCommand>>,
     current_turn_history: ThreadHistoryBuilder,
     listener_thread: Option<Weak<CodexThread>>,
+    watch_registration: WatchRegistration,
 }
 
 impl ThreadState {
@@ -91,6 +93,7 @@ impl ThreadState {
         &mut self,
         cancel_tx: oneshot::Sender<()>,
         conversation: &Arc<CodexThread>,
+        watch_registration: WatchRegistration,
     ) -> (mpsc::UnboundedReceiver<ThreadListenerCommand>, u64) {
         if let Some(previous) = self.cancel_tx.replace(cancel_tx) {
             let _ = previous.send(());
@@ -99,6 +102,7 @@ impl ThreadState {
         let (listener_command_tx, listener_command_rx) = mpsc::unbounded_channel();
         self.listener_command_tx = Some(listener_command_tx);
         self.listener_thread = Some(Arc::downgrade(conversation));
+        self.watch_registration = watch_registration;
         (listener_command_rx, self.listener_generation)
     }
 
@@ -109,6 +113,7 @@ impl ThreadState {
         self.listener_command_tx = None;
         self.current_turn_history.reset();
         self.listener_thread = None;
+        self.watch_registration = WatchRegistration::default();
     }
 
     pub(crate) fn set_experimental_raw_events(&mut self, enabled: bool) {
diff --git a/codex-rs/app-server/tests/suite/v2/skills_list.rs b/codex-rs/app-server/tests/suite/v2/skills_list.rs
index 39dae06bd0..416b2515ad 100644
--- a/codex-rs/app-server/tests/suite/v2/skills_list.rs
+++ b/codex-rs/app-server/tests/suite/v2/skills_list.rs
@@ -4,8 +4,10 @@ use anyhow::Context;
 use anyhow::Result;
 use app_test_support::ChatGptAuthFixture;
 use app_test_support::McpProcess;
+use app_test_support::create_mock_responses_server_repeating_assistant;
 use app_test_support::to_response;
 use app_test_support::write_chatgpt_auth;
+use app_test_support::write_mock_responses_config_toml_with_chatgpt_base_url;
 use codex_app_server_protocol::JSONRPCResponse;
 use codex_app_server_protocol::PluginListParams;
 use codex_app_server_protocol::PluginListResponse;
@@ -573,11 +575,39 @@ async fn skills_list_uses_cached_result_until_force_reload() -> Result<()> {
 
 #[tokio::test]
 async fn skills_changed_notification_is_emitted_after_skill_change() -> Result<()> {
+    let server = create_mock_responses_server_repeating_assistant("Done").await;
     let codex_home = TempDir::new()?;
+    write_mock_responses_config_toml_with_chatgpt_base_url(
+        codex_home.path(),
+        &server.uri(),
+        &server.uri(),
+    )?;
     write_skill(&codex_home, "demo")?;
 
-    let mut mcp = McpProcess::new(codex_home.path()).await?;
+    let mut mcp =
+        McpProcess::new_with_env(codex_home.path(), &[(CODEX_EXEC_SERVER_URL_ENV_VAR, None)])
+            .await?;
     timeout(DEFAULT_TIMEOUT, mcp.initialize()).await??;
+    let initial_skills_request_id = mcp
+        .send_skills_list_request(SkillsListParams {
+            cwds: vec![codex_home.path().to_path_buf()],
+            force_reload: true,
+        })
+        .await?;
+    let initial_skills_response: JSONRPCResponse = timeout(
+        DEFAULT_TIMEOUT,
+        mcp.read_stream_until_response_message(RequestId::Integer(initial_skills_request_id)),
+    )
+    .await??;
+    let SkillsListResponse { data } = to_response(initial_skills_response)?;
+    assert_eq!(data.len(), 1);
+    assert!(
+        data[0]
+            .skills
+            .iter()
+            .any(|skill| { skill.name == "demo" && skill.description == "demo description" })
+    );
+
     let thread_start_request_id = mcp
         .send_thread_start_request(ThreadStartParams {
             model: None,
@@ -630,5 +660,24 @@ async fn skills_changed_notification_is_emitted_after_skill_change() -> Result<(
     let notification: SkillsChangedNotification = serde_json::from_value(params)?;
 
     assert_eq!(notification, SkillsChangedNotification {});
+    let updated_skills_request_id = mcp
+        .send_skills_list_request(SkillsListParams {
+            cwds: vec![codex_home.path().to_path_buf()],
+            force_reload: false,
+        })
+        .await?;
+    let updated_skills_response: JSONRPCResponse = timeout(
+        DEFAULT_TIMEOUT,
+        mcp.read_stream_until_response_message(RequestId::Integer(updated_skills_request_id)),
+    )
+    .await??;
+    let SkillsListResponse { data } = to_response(updated_skills_response)?;
+    assert_eq!(data.len(), 1);
+    assert!(
+        data[0]
+            .skills
+            .iter()
+            .any(|skill| skill.name == "demo" && skill.description == "updated")
+    );
     Ok(())
 }
diff --git a/codex-rs/core/src/codex_delegate.rs b/codex-rs/core/src/codex_delegate.rs
index 2503764904..793162cb2d 100644
--- a/codex-rs/core/src/codex_delegate.rs
+++ b/codex-rs/core/src/codex_delegate.rs
@@ -83,7 +83,6 @@ pub(crate) async fn run_codex_thread_interactive(
         skills_manager: Arc::clone(&parent_session.services.skills_manager),
         plugins_manager: Arc::clone(&parent_session.services.plugins_manager),
         mcp_manager: Arc::clone(&parent_session.services.mcp_manager),
-        skills_watcher: Arc::clone(&parent_session.services.skills_watcher),
         conversation_history: initial_history.unwrap_or(InitialHistory::New),
         session_source: SessionSource::SubAgent(subagent_source.clone()),
         thread_source: Some(ThreadSource::Subagent),
diff --git a/codex-rs/core/src/codex_thread.rs b/codex-rs/core/src/codex_thread.rs
index 9fe235640a..a0dd95c37b 100644
--- a/codex-rs/core/src/codex_thread.rs
+++ b/codex-rs/core/src/codex_thread.rs
@@ -1,6 +1,5 @@
 use crate::agent::AgentStatus;
 use crate::config::ConstraintResult;
-use crate::file_watcher::WatchRegistration;
 use crate::goals::ExternalGoalSet;
 use crate::goals::GoalRuntimeEvent;
 use crate::session::Codex;
@@ -31,6 +30,7 @@ use codex_protocol::protocol::Submission;
 use codex_protocol::protocol::ThreadMemoryMode;
 use codex_protocol::protocol::ThreadSource;
 use codex_protocol::protocol::TokenUsageInfo;
+use codex_protocol::protocol::TurnEnvironmentSelection;
 use codex_protocol::protocol::W3cTraceContext;
 use codex_protocol::user_input::UserInput;
 use codex_thread_store::StoredThread;
@@ -101,7 +101,6 @@ pub struct CodexThread {
     session_configured: SessionConfiguredEvent,
     rollout_path: Option<PathBuf>,
     out_of_band_elicitation_count: Mutex<u64>,
-    _watch_registration: WatchRegistration,
 }
 
 /// Conduit for the bidirectional stream of messages that compose a thread
@@ -112,7 +111,6 @@ impl CodexThread {
         session_configured: SessionConfiguredEvent,
         rollout_path: Option<PathBuf>,
         session_source: SessionSource,
-        watch_registration: WatchRegistration,
     ) -> Self {
         Self {
             codex,
@@ -120,7 +118,6 @@ impl CodexThread {
             session_configured,
             rollout_path,
             out_of_band_elicitation_count: Mutex::new(0),
-            _watch_registration: watch_registration,
         }
     }
 
@@ -471,6 +468,10 @@ impl CodexThread {
         self.codex.session.refresh_runtime_config(next_config).await;
     }
 
+    pub async fn environment_selections(&self) -> Vec<TurnEnvironmentSelection> {
+        self.codex.thread_environment_selections().await
+    }
+
     pub async fn read_mcp_resource(
         &self,
         server: &str,
diff --git a/codex-rs/core/src/lib.rs b/codex-rs/core/src/lib.rs
index 57ac9b4a59..41205c14db 100644
--- a/codex-rs/core/src/lib.rs
+++ b/codex-rs/core/src/lib.rs
@@ -100,7 +100,6 @@ pub(crate) use skills::manager;
 pub(crate) use skills::maybe_emit_implicit_skill_invocation;
 pub(crate) use skills::resolve_skill_dependencies_for_turn;
 pub(crate) use skills::skills_load_input_from_config;
-mod skills_watcher;
 mod stream_events_utils;
 pub mod test_support;
 mod unified_exec;
diff --git a/codex-rs/core/src/session/mod.rs b/codex-rs/core/src/session/mod.rs
index c6acf16f67..7e4c8d7073 100644
--- a/codex-rs/core/src/session/mod.rs
+++ b/codex-rs/core/src/session/mod.rs
@@ -113,6 +113,7 @@ use codex_protocol::protocol::ThreadSource;
 use codex_protocol::protocol::TurnAbortReason;
 use codex_protocol::protocol::TurnContextItem;
 use codex_protocol::protocol::TurnContextNetworkItem;
+use codex_protocol::protocol::TurnEnvironmentSelection;
 use codex_protocol::protocol::W3cTraceContext;
 use codex_protocol::request_permissions::PermissionGrantScope;
 use codex_protocol::request_permissions::RequestPermissionProfile;
@@ -283,8 +284,6 @@ use crate::rollout::map_session_init_error;
 use crate::session_startup_prewarm::SessionStartupPrewarmHandle;
 use crate::shell;
 use crate::shell_snapshot::ShellSnapshot;
-use crate::skills_watcher::SkillsWatcher;
-use crate::skills_watcher::SkillsWatcherEvent;
 use crate::state::ActiveTurn;
 use crate::state::MailboxDeliveryPhase;
 use crate::state::PendingRequestPermissions;
@@ -393,7 +392,6 @@ pub(crate) struct CodexSpawnArgs {
     pub(crate) skills_manager: Arc<SkillsManager>,
     pub(crate) plugins_manager: Arc<PluginsManager>,
     pub(crate) mcp_manager: Arc<McpManager>,
-    pub(crate) skills_watcher: Arc<SkillsWatcher>,
     pub(crate) conversation_history: InitialHistory,
     pub(crate) session_source: SessionSource,
     pub(crate) thread_source: Option<ThreadSource>,
@@ -457,7 +455,6 @@ impl Codex {
             skills_manager,
             plugins_manager,
             mcp_manager,
-            skills_watcher,
             conversation_history,
             session_source,
             thread_source,
@@ -653,7 +650,6 @@ impl Codex {
             skills_manager,
             plugins_manager,
             mcp_manager.clone(),
-            skills_watcher,
             agent_control,
             environment_manager,
             analytics_events_client,
@@ -788,6 +784,11 @@ impl Codex {
         state.session_configuration.thread_config_snapshot()
     }
 
+    pub(crate) async fn thread_environment_selections(&self) -> Vec<TurnEnvironmentSelection> {
+        let state = self.session.state.lock().await;
+        state.session_configuration.environments.clone()
+    }
+
     pub(crate) fn state_db(&self) -> Option<state_db::StateDbHandle> {
         self.session.state_db()
     }
@@ -1021,29 +1022,6 @@ impl Session {
         self.out_of_band_elicitation_paused.send_replace(paused);
     }
 
-    fn start_skills_watcher_listener(self: &Arc<Self>) {
-        let mut rx = self.services.skills_watcher.subscribe();
-        let weak_sess = Arc::downgrade(self);
-        tokio::spawn(async move {
-            loop {
-                match rx.recv().await {
-                    Ok(SkillsWatcherEvent::SkillsChanged { .. }) => {
-                        let Some(sess) = weak_sess.upgrade() else {
-                            break;
-                        };
-                        let event = Event {
-                            id: sess.next_internal_sub_id(),
-                            msg: EventMsg::SkillsUpdateAvailable,
-                        };
-                        sess.send_event_raw(event).await;
-                    }
-                    Err(tokio::sync::broadcast::error::RecvError::Closed) => break,
-                    Err(tokio::sync::broadcast::error::RecvError::Lagged(_)) => continue,
-                }
-            }
-        });
-    }
-
     pub(crate) fn get_tx_event(&self) -> Sender<Event> {
         self.tx_event.clone()
     }
diff --git a/codex-rs/core/src/session/session.rs b/codex-rs/core/src/session/session.rs
index 1a790314d5..23d22f94a5 100644
--- a/codex-rs/core/src/session/session.rs
+++ b/codex-rs/core/src/session/session.rs
@@ -364,7 +364,6 @@ impl Session {
         skills_manager: Arc<SkillsManager>,
         plugins_manager: Arc<PluginsManager>,
         mcp_manager: Arc<McpManager>,
-        skills_watcher: Arc<SkillsWatcher>,
         agent_control: AgentControl,
         environment_manager: Arc<EnvironmentManager>,
         analytics_events_client: Option<AnalyticsEventsClient>,
@@ -846,7 +845,6 @@ impl Session {
                 skills_manager,
                 plugins_manager: Arc::clone(&plugins_manager),
                 mcp_manager: Arc::clone(&mcp_manager),
-                skills_watcher,
                 agent_control,
                 network_proxy,
                 network_approval: Arc::clone(&network_approval),
@@ -935,8 +933,6 @@ impl Session {
                 sess.send_event_raw(event).await;
             }
 
-            // Start the watcher after SessionConfigured so it cannot emit earlier events.
-            sess.start_skills_watcher_listener();
             let mut required_mcp_servers: Vec<String> = mcp_servers
                 .iter()
                 .filter(|(_, server)| server.enabled() && server.required())
diff --git a/codex-rs/core/src/session/tests.rs b/codex-rs/core/src/session/tests.rs
index 5090fc3f07..0cb433c3e5 100644
--- a/codex-rs/core/src/session/tests.rs
+++ b/codex-rs/core/src/session/tests.rs
@@ -3725,7 +3725,6 @@ async fn session_new_fails_when_zsh_fork_enabled_without_zsh_path() {
         skills_manager,
         plugins_manager,
         mcp_manager,
-        Arc::new(SkillsWatcher::noop()),
         AgentControl::default(),
         Arc::new(codex_exec_server::EnvironmentManager::default_for_tests()),
         /*analytics_events_client*/ None,
@@ -3837,7 +3836,6 @@ pub(crate) async fn make_session_and_context() -> (Session, TurnContext) {
             .expect("create environment"),
     );
 
-    let skills_watcher = Arc::new(SkillsWatcher::noop());
     let services = SessionServices {
         mcp_connection_manager: Arc::new(RwLock::new(McpConnectionManager::new_uninitialized(
             &config.permissions.approval_policy,
@@ -3873,7 +3871,6 @@ pub(crate) async fn make_session_and_context() -> (Session, TurnContext) {
         skills_manager,
         plugins_manager,
         mcp_manager,
-        skills_watcher,
         agent_control,
         network_proxy: None,
         network_approval: Arc::clone(&network_approval),
@@ -4064,7 +4061,6 @@ async fn make_session_with_config_and_rx(
         skills_manager,
         plugins_manager,
         mcp_manager,
-        Arc::new(SkillsWatcher::noop()),
         AgentControl::default(),
         Arc::new(codex_exec_server::EnvironmentManager::default_for_tests()),
         /*analytics_events_client*/ None,
@@ -4167,7 +4163,6 @@ async fn make_session_with_history_source_and_agent_control_and_rx(
         skills_manager,
         plugins_manager,
         mcp_manager,
-        Arc::new(SkillsWatcher::noop()),
         agent_control,
         Arc::new(codex_exec_server::EnvironmentManager::default_for_tests()),
         /*analytics_events_client*/ None,
@@ -5556,7 +5551,6 @@ where
             .expect("create environment"),
     );
 
-    let skills_watcher = Arc::new(SkillsWatcher::noop());
     let services = SessionServices {
         mcp_connection_manager: Arc::new(RwLock::new(McpConnectionManager::new_uninitialized(
             &config.permissions.approval_policy,
@@ -5592,7 +5586,6 @@ where
         skills_manager,
         plugins_manager,
         mcp_manager,
-        skills_watcher,
         agent_control,
         network_proxy: None,
         network_approval: Arc::clone(&network_approval),
diff --git a/codex-rs/core/src/session/tests/guardian_tests.rs b/codex-rs/core/src/session/tests/guardian_tests.rs
index 37a5e6bb09..8d4bfd9cbe 100644
--- a/codex-rs/core/src/session/tests/guardian_tests.rs
+++ b/codex-rs/core/src/session/tests/guardian_tests.rs
@@ -728,7 +728,6 @@ async fn guardian_subagent_does_not_inherit_parent_exec_policy_rules() {
         /*bundled_skills_enabled*/ true,
     ));
     let mcp_manager = Arc::new(McpManager::new(Arc::clone(&plugins_manager)));
-    let skills_watcher = Arc::new(SkillsWatcher::noop());
     let thread_store = Arc::new(codex_thread_store::LocalThreadStore::new(
         codex_thread_store::LocalThreadStoreConfig::from_config(&config),
         /*state_db*/ None,
@@ -743,7 +742,6 @@ async fn guardian_subagent_does_not_inherit_parent_exec_policy_rules() {
         skills_manager,
         plugins_manager,
         mcp_manager,
-        skills_watcher,
         conversation_history: InitialHistory::New,
         session_source: SessionSource::SubAgent(SubAgentSource::Other(
             GUARDIAN_REVIEWER_NAME.to_string(),
diff --git a/codex-rs/core/src/session/turn.rs b/codex-rs/core/src/session/turn.rs
index 1723904cff..bf552a79fd 100644
--- a/codex-rs/core/src/session/turn.rs
+++ b/codex-rs/core/src/session/turn.rs
@@ -1505,7 +1505,6 @@ pub(super) fn realtime_text_for_event(msg: &EventMsg) -> Option<String> {
         | EventMsg::StreamError(_)
         | EventMsg::TurnDiff(_)
         | EventMsg::RealtimeConversationListVoicesResponse(_)
-        | EventMsg::SkillsUpdateAvailable
         | EventMsg::PlanUpdate(_)
         | EventMsg::TurnAborted(_)
         | EventMsg::ShutdownComplete
diff --git a/codex-rs/core/src/skills_watcher.rs b/codex-rs/core/src/skills_watcher.rs
deleted file mode 100644
index fb271ca876..0000000000
--- a/codex-rs/core/src/skills_watcher.rs
+++ /dev/null
@@ -1,125 +0,0 @@
-//! Skills-specific watcher built on top of the generic [`FileWatcher`].
-
-use std::path::PathBuf;
-use std::sync::Arc;
-use std::time::Duration;
-
-use tokio::runtime::Handle;
-use tokio::sync::broadcast;
-use tracing::warn;
-
-use crate::SkillsManager;
-use crate::config::Config;
-use crate::file_watcher::FileWatcher;
-use crate::file_watcher::FileWatcherSubscriber;
-use crate::file_watcher::Receiver;
-use crate::file_watcher::ThrottledWatchReceiver;
-use crate::file_watcher::WatchPath;
-use crate::file_watcher::WatchRegistration;
-use crate::skills_load_input_from_config;
-use codex_core_plugins::PluginsManager;
-
-#[cfg(not(test))]
-const WATCHER_THROTTLE_INTERVAL: Duration = Duration::from_secs(10);
-#[cfg(test)]
-const WATCHER_THROTTLE_INTERVAL: Duration = Duration::from_millis(50);
-
-#[derive(Debug, Clone, PartialEq, Eq)]
-pub enum SkillsWatcherEvent {
-    SkillsChanged { paths: Vec<PathBuf> },
-}
-
-pub(crate) struct SkillsWatcher {
-    subscriber: FileWatcherSubscriber,
-    tx: broadcast::Sender<SkillsWatcherEvent>,
-}
-
-impl SkillsWatcher {
-    pub(crate) fn new(file_watcher: &Arc<FileWatcher>) -> Self {
-        let (subscriber, rx) = file_watcher.add_subscriber();
-        let (tx, _) = broadcast::channel(128);
-        let skills_watcher = Self {
-            subscriber,
-            tx: tx.clone(),
-        };
-        Self::spawn_event_loop(rx, tx);
-        skills_watcher
-    }
-
-    pub(crate) fn noop() -> Self {
-        Self::new(&Arc::new(FileWatcher::noop()))
-    }
-
-    pub(crate) fn subscribe(&self) -> broadcast::Receiver<SkillsWatcherEvent> {
-        self.tx.subscribe()
-    }
-
-    pub(crate) async fn register_config(
-        &self,
-        config: &Config,
-        skills_manager: &SkillsManager,
-        plugins_manager: &PluginsManager,
-        fs: Option<Arc<dyn codex_exec_server::ExecutorFileSystem>>,
-    ) -> WatchRegistration {
-        let plugins_input = config.plugins_config_input();
-        let plugin_outcome = plugins_manager.plugins_for_config(&plugins_input).await;
-        let effective_skill_roots = plugin_outcome.effective_plugin_skill_roots();
-        let skills_input = skills_load_input_from_config(config, effective_skill_roots);
-        let roots = skills_manager
-            .skill_roots_for_config(&skills_input, fs)
-            .await
-            .into_iter()
-            .map(|root| WatchPath {
-                path: root.path.into_path_buf(),
-                recursive: true,
-            })
-            .collect();
-        self.subscriber.register_paths(roots)
-    }
-
-    fn spawn_event_loop(rx: Receiver, tx: broadcast::Sender<SkillsWatcherEvent>) {
-        let mut rx = ThrottledWatchReceiver::new(rx, WATCHER_THROTTLE_INTERVAL);
-        if let Ok(handle) = Handle::try_current() {
-            handle.spawn(async move {
-                while let Some(event) = rx.recv().await {
-                    let _ = tx.send(SkillsWatcherEvent::SkillsChanged { paths: event.paths });
-                }
-            });
-        } else {
-            warn!("skills watcher listener skipped: no Tokio runtime available");
-        }
-    }
-}
-
-#[cfg(test)]
-mod tests {
-    use super::*;
-    use pretty_assertions::assert_eq;
-    use tokio::time::Duration;
-    use tokio::time::timeout;
-
-    #[tokio::test]
-    async fn forwards_file_watcher_events() {
-        let file_watcher = Arc::new(FileWatcher::noop());
-        let skills_watcher = SkillsWatcher::new(&file_watcher);
-        let mut rx = skills_watcher.subscribe();
-        let _registration = skills_watcher
-            .subscriber
-            .register_path(PathBuf::from("/tmp/skill"), /*recursive*/ true);
-
-        file_watcher
-            .send_paths_for_test(vec![PathBuf::from("/tmp/skill/SKILL.md")])
-            .await;
-
-        let event = timeout(Duration::from_secs(2), rx.recv())
-            .await
-            .expect("skills watcher event")
-            .expect("broadcast recv");
-        assert_eq!(
-            event,
-            SkillsWatcherEvent::SkillsChanged {
-                paths: vec![PathBuf::from("/tmp/skill/SKILL.md")],
-            }
-        );
-    }
-}
diff --git a/codex-rs/core/src/state/service.rs b/codex-rs/core/src/state/service.rs
index 0dba931296..7e13eddb76 100644
--- a/codex-rs/core/src/state/service.rs
+++ b/codex-rs/core/src/state/service.rs
@@ -10,7 +10,6 @@ use crate::exec_policy::ExecPolicyManager;
 use crate::guardian::GuardianRejection;
 use crate::guardian::GuardianRejectionCircuitBreaker;
 use crate::mcp::McpManager;
-use crate::skills_watcher::SkillsWatcher;
 use crate::tools::code_mode::CodeModeService;
 use crate::tools::network_approval::NetworkApprovalService;
 use crate::tools::sandboxing::ApprovalStore;
@@ -60,7 +59,6 @@ pub(crate) struct SessionServices {
     pub(crate) skills_manager: Arc<SkillsManager>,
     pub(crate) plugins_manager: Arc<PluginsManager>,
     pub(crate) mcp_manager: Arc<McpManager>,
-    pub(crate) skills_watcher: Arc<SkillsWatcher>,
     pub(crate) agent_control: AgentControl,
     pub(crate) network_proxy: Option<StartedNetworkProxy>,
     pub(crate) network_approval: Arc<NetworkApprovalService>,
diff --git a/codex-rs/core/src/thread_manager.rs b/codex-rs/core/src/thread_manager.rs
index de4114189b..bfd91f68f8 100644
--- a/codex-rs/core/src/thread_manager.rs
+++ b/codex-rs/core/src/thread_manager.rs
@@ -6,7 +6,6 @@ use crate::config::Config;
 use crate::config::ThreadStoreConfig;
 use crate::environment_selection::default_thread_environment_selections;
 use crate::environment_selection::resolve_environment_selections;
-use crate::file_watcher::FileWatcher;
 use crate::mcp::McpManager;
 use crate::rollout::truncation;
 use crate::session::Codex;
@@ -14,8 +13,6 @@ use crate::session::CodexSpawnArgs;
 use crate::session::CodexSpawnOk;
 use crate::session::INITIAL_SUBMIT_ID;
 use crate::shell_snapshot::ShellSnapshot;
-use crate::skills_watcher::SkillsWatcher;
-use crate::skills_watcher::SkillsWatcherEvent;
 use crate::tasks::InterruptedTurnHistoryMarker;
 use crate::tasks::interrupted_turn_history_marker;
 use codex_analytics::AnalyticsEventsClient;
@@ -71,8 +68,6 @@ use std::sync::Arc;
 use std::sync::atomic::AtomicBool;
 use std::sync::atomic::Ordering;
 use std::time::Duration;
-use tokio::runtime::Handle;
-use tokio::runtime::RuntimeFlavor;
 use tokio::sync::RwLock;
 use tokio::sync::broadcast;
 use tracing::warn;
@@ -106,47 +101,6 @@ impl Drop for TempCodexHomeGuard {
     }
 }
 
-fn build_skills_watcher(skills_manager: Arc<SkillsManager>) -> Arc<SkillsWatcher> {
-    if should_use_test_thread_manager_behavior()
-        && let Ok(handle) = Handle::try_current()
-        && handle.runtime_flavor() == RuntimeFlavor::CurrentThread
-    {
-        // The real watcher spins background tasks that can starve the
-        // current-thread test runtime and cause event waits to time out.
-        warn!("using noop skills watcher under current-thread test runtime");
-        return Arc::new(SkillsWatcher::noop());
-    }
-
-    let file_watcher = match FileWatcher::new() {
-        Ok(file_watcher) => Arc::new(file_watcher),
-        Err(err) => {
-            warn!("failed to initialize file watcher: {err}");
-            Arc::new(FileWatcher::noop())
-        }
-    };
-    let skills_watcher = Arc::new(SkillsWatcher::new(&file_watcher));
-
-    let mut rx = skills_watcher.subscribe();
-    let skills_manager = Arc::clone(&skills_manager);
-    if let Ok(handle) = Handle::try_current() {
-        handle.spawn(async move {
-            loop {
-                match rx.recv().await {
-                    Ok(SkillsWatcherEvent::SkillsChanged { .. }) => {
-                        skills_manager.clear_cache();
-                    }
-                    Err(broadcast::error::RecvError::Closed) => break,
-                    Err(broadcast::error::RecvError::Lagged(_)) => continue,
-                }
-            }
-        });
-    } else {
-        warn!("skills watcher listener skipped: no Tokio runtime available");
-    }
-
-    skills_watcher
-}
-
 /// Represents a newly created Codex thread (formerly called a conversation), including the first event
 /// (which is [`EventMsg::SessionConfigured`]).
 pub struct NewThread {
@@ -247,7 +201,6 @@ pub(crate) struct ThreadManagerState {
     skills_manager: Arc<SkillsManager>,
     plugins_manager: Arc<PluginsManager>,
     mcp_manager: Arc<McpManager>,
-    skills_watcher: Arc<SkillsWatcher>,
     thread_store: Arc<dyn ThreadStore>,
     attestation_provider: Option<Arc<dyn AttestationProvider>>,
     session_source: SessionSource,
@@ -308,7 +261,6 @@ impl ThreadManager {
             config.bundled_skills_enabled(),
             restriction_product,
         ));
-        let skills_watcher = build_skills_watcher(Arc::clone(&skills_manager));
         Self {
             state: Arc::new(ThreadManagerState {
                 threads: Arc::new(RwLock::new(HashMap::new())),
@@ -318,7 +270,6 @@ impl ThreadManager {
                 skills_manager,
                 plugins_manager,
                 mcp_manager,
-                skills_watcher,
                 thread_store,
                 attestation_provider,
                 auth_manager,
@@ -399,7 +350,6 @@ impl ThreadManager {
             /*bundled_skills_enabled*/ true,
             restriction_product,
         ));
-        let skills_watcher = build_skills_watcher(Arc::clone(&skills_manager));
         // This test constructor has no Config input. Tests that need a non-local
         // process store should construct ThreadManager::new with an explicit store.
         let thread_store: Arc<dyn ThreadStore> = Arc::new(LocalThreadStore::new(
@@ -420,7 +370,6 @@ impl ThreadManager {
                 skills_manager,
                 plugins_manager,
                 mcp_manager,
-                skills_watcher,
                 thread_store,
                 attestation_provider: None,
                 auth_manager,
@@ -1165,19 +1114,6 @@ impl ThreadManagerState {
         }
         let environment_selections =
             resolve_environment_selections(self.environment_manager.as_ref(), &environments)?;
-        let watch_registration = match environment_selections.primary() {
-            Some(turn_environment) if !turn_environment.environment.is_remote() => {
-                self.skills_watcher
-                    .register_config(
-                        &config,
-                        self.skills_manager.as_ref(),
-                        self.plugins_manager.as_ref(),
-                        Some(turn_environment.environment.get_filesystem()),
-                    )
-                    .await
-            }
-            Some(_) | None => crate::file_watcher::WatchRegistration::default(),
-        };
         let parent_rollout_thread_trace = self
             .parent_rollout_thread_trace_for_source(&session_source, &initial_history)
             .await;
@@ -1193,7 +1129,6 @@ impl ThreadManagerState {
             skills_manager: Arc::clone(&self.skills_manager),
             plugins_manager: Arc::clone(&self.plugins_manager),
             mcp_manager: Arc::clone(&self.mcp_manager),
-            skills_watcher: Arc::clone(&self.skills_watcher),
             conversation_history: initial_history,
             session_source,
             thread_source,
@@ -1213,7 +1148,7 @@ impl ThreadManagerState {
         })
         .await?;
         let new_thread = self
-            .finalize_thread_spawn(codex, thread_id, tracked_session_source, watch_registration)
+            .finalize_thread_spawn(codex, thread_id, tracked_session_source)
             .await?;
         if is_resumed_thread
             && let Err(err) = new_thread.thread.apply_goal_resume_runtime_effects().await
@@ -1228,7 +1163,6 @@ impl ThreadManagerState {
         codex: Codex,
         thread_id: ThreadId,
         session_source: SessionSource,
-        watch_registration: crate::file_watcher::WatchRegistration,
     ) -> CodexResult<NewThread> {
         let event = codex.next_event().await?;
         let session_configured = match event {
@@ -1249,7 +1183,6 @@ impl ThreadManagerState {
                     session_configured.clone(),
                     session_configured.rollout_path.clone(),
                     session_source,
-                    watch_registration,
                 ));
                 e.insert(thread.clone());
                 return Ok(NewThread {
diff --git a/codex-rs/core/tests/suite/live_reload.rs b/codex-rs/core/tests/suite/live_reload.rs
deleted file mode 100644
index c422073e4f..0000000000
--- a/codex-rs/core/tests/suite/live_reload.rs
+++ /dev/null
@@ -1,157 +0,0 @@
-#![allow(clippy::expect_used, clippy::unwrap_used)]
-
-use std::fs;
-use std::path::Path;
-use std::path::PathBuf;
-use std::time::Duration;
-
-use anyhow::Result;
-use codex_config::config_toml::ProjectConfig;
-use codex_protocol::config_types::TrustLevel;
-use codex_protocol::models::PermissionProfile;
-use codex_protocol::protocol::AskForApproval;
-use codex_protocol::protocol::EventMsg;
-use codex_protocol::protocol::Op;
-use codex_protocol::user_input::UserInput;
-use core_test_support::responses;
-use core_test_support::responses::ResponsesRequest;
-use core_test_support::responses::mount_sse_sequence;
-use core_test_support::responses::start_mock_server;
-use core_test_support::test_codex::TestCodex;
-use core_test_support::test_codex::test_codex;
-use core_test_support::test_codex::turn_permission_fields;
-use core_test_support::wait_for_event;
-use tokio::time::timeout;
-
-fn enable_trusted_project(config: &mut codex_core::config::Config) {
-    config.active_project = ProjectConfig {
-        trust_level: Some(TrustLevel::Trusted),
-    };
-}
-
-fn write_skill(home: &Path, name: &str, description: &str, body: &str) -> PathBuf {
-    let skill_dir = home.join("skills").join(name);
-    fs::create_dir_all(&skill_dir).expect("create skill dir");
-    let contents = format!("---\nname: {name}\ndescription: {description}\n---\n\n{body}\n");
-    let path = skill_dir.join("SKILL.md");
-    fs::write(&path, contents).expect("write skill");
-    path
-}
-
-fn contains_skill_body(request: &ResponsesRequest, skill_body: &str) -> bool {
-    request
-        .message_input_texts("user")
-        .iter()
-        .any(|text| text.contains(skill_body) && text.contains("<skill>"))
-}
-
-async fn submit_skill_turn(test: &TestCodex, skill_path: PathBuf, prompt: &str) -> Result<()> {
-    let session_model = test.session_configured.model.clone();
-    let (sandbox_policy, permission_profile) =
-        turn_permission_fields(PermissionProfile::Disabled, test.cwd_path());
-    test.codex
-        .submit(Op::UserTurn {
-            environments: None,
-            items: vec![
-                UserInput::Text {
-                    text: prompt.to_string(),
-                    text_elements: Vec::new(),
-                },
-                UserInput::Skill {
-                    name: "demo".to_string(),
-                    path: skill_path,
-                },
-            ],
-            final_output_json_schema: None,
-            cwd: test.cwd_path().to_path_buf(),
-            approval_policy: AskForApproval::Never,
-            approvals_reviewer: None,
-            sandbox_policy,
-            permission_profile,
-            model: session_model,
-            effort: None,
-            summary: None,
-            service_tier: None,
-            collaboration_mode: None,
-            personality: None,
-        })
-        .await?;
-
-    wait_for_event(test.codex.as_ref(), |event| {
-        matches!(event, EventMsg::TurnComplete(_))
-    })
-    .await;
-    Ok(())
-}
-
-#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
-async fn live_skills_reload_refreshes_skill_cache_after_skill_change() -> Result<()> {
-    let server = start_mock_server().await;
-    let responses = mount_sse_sequence(
-        &server,
-        vec![
-            responses::sse(vec![responses::ev_completed("resp-1")]),
-            responses::sse(vec![responses::ev_completed("resp-2")]),
-        ],
-    )
-    .await;
-
-    let skill_v1 = "skill body v1";
-    let skill_v2 = "skill body v2";
-    let mut builder = test_codex()
-        .with_pre_build_hook(move |home| {
-            write_skill(home, "demo", "demo skill", skill_v1);
-        })
-        .with_config(|config| {
-            enable_trusted_project(config);
-        });
-    let test = builder.build(&server).await?;
-
-    let skill_path = dunce::canonicalize(test.codex_home_path().join("skills/demo/SKILL.md"))?;
-
-    submit_skill_turn(&test, skill_path.clone(), "please use $demo").await?;
-    let first_request = responses
-        .requests()
-        .first()
-        .cloned()
-        .expect("first request captured");
-    assert!(
-        contains_skill_body(&first_request, skill_v1),
-        "expected initial skill body in request"
-    );
-
-    write_skill(test.codex_home_path(), "demo", "demo skill", skill_v2);
-
-    let saw_skills_update = timeout(Duration::from_secs(5), async {
-        loop {
-            match test.codex.next_event().await {
-                Ok(event) => {
-                    if matches!(event.msg, EventMsg::SkillsUpdateAvailable) {
-                        break;
-                    }
-                }
-                Err(err) => panic!("event stream ended unexpectedly: {err}"),
-            }
-        }
-    })
-    .await;
-
-    if saw_skills_update.is_err() {
-        // Some environments do not reliably surface file watcher events for
-        // skill changes. Clear the cache explicitly so we can still validate
-        // that the updated skill body is injected on the next turn.
-        test.thread_manager.skills_manager().clear_cache();
-    }
-
-    submit_skill_turn(&test, skill_path.clone(), "please use $demo again").await?;
-    let last_request = responses
-        .last_request()
-        .expect("request captured after skill update");
-
-    assert!(
-        contains_skill_body(&last_request, skill_v2),
-        "expected updated skill body after reload"
-    );
-
-    Ok(())
-}
diff --git a/codex-rs/core/tests/suite/mod.rs b/codex-rs/core/tests/suite/mod.rs
index 0c91654c83..843b558ebf 100644
--- a/codex-rs/core/tests/suite/mod.rs
+++ b/codex-rs/core/tests/suite/mod.rs
@@ -57,7 +57,6 @@ mod image_rollout;
 mod items;
 mod json_result;
 mod live_cli;
-mod live_reload;
 mod model_overrides;
 mod model_switching;
 mod model_visible_layout;
diff --git a/codex-rs/core/tests/suite/realtime_conversation.rs b/codex-rs/core/tests/suite/realtime_conversation.rs
index ff273a77c4..31d30d824e 100644
--- a/codex-rs/core/tests/suite/realtime_conversation.rs
+++ b/codex-rs/core/tests/suite/realtime_conversation.rs
@@ -754,6 +754,9 @@ async fn conversation_webrtc_sideband_connect_failure_closes_with_error() -> Res
         config.experimental_realtime_ws_model = Some("realtime-test-model".to_string());
         config.experimental_realtime_ws_startup_context = Some(String::new());
         config.experimental_realtime_ws_base_url = Some("http://127.0.0.1:1".to_string());
+        // Keep the failure-path test inside wait_for_event's timeout on Windows,
+        // where refused localhost websocket connects can take around two seconds.
+        config.model_provider.request_max_retries = Some(0);
         config.realtime.version = RealtimeWsVersion::V1;
     });
     let test = builder.build(&server).await?;
diff --git a/codex-rs/mcp-server/src/codex_tool_runner.rs b/codex-rs/mcp-server/src/codex_tool_runner.rs
index 4e2d5c08e5..9e3ac1bae9 100644
--- a/codex-rs/mcp-server/src/codex_tool_runner.rs
+++ b/codex-rs/mcp-server/src/codex_tool_runner.rs
@@ -364,7 +364,6 @@ async fn run_codex_tool_session_inner(
                     | EventMsg::AgentMessageContentDelta(_)
                     | EventMsg::ReasoningContentDelta(_)
                     | EventMsg::ReasoningRawContentDelta(_)
-                    | EventMsg::SkillsUpdateAvailable
                     | EventMsg::ExitedReviewMode(_)
                     | EventMsg::RequestUserInput(_)
                     | EventMsg::RequestPermissions(_)
diff --git a/codex-rs/protocol/src/protocol.rs b/codex-rs/protocol/src/protocol.rs
index 30e33abe43..91fd02d858 100644
--- a/codex-rs/protocol/src/protocol.rs
+++ b/codex-rs/protocol/src/protocol.rs
@@ -1401,9 +1401,6 @@ pub enum EventMsg {
     /// List of voices supported by realtime conversation streams.
     RealtimeConversationListVoicesResponse(RealtimeConversationListVoicesResponseEvent),
 
-    /// Notification that skill data may have been updated and clients may want to reload.
-    SkillsUpdateAvailable,
-
     PlanUpdate(UpdatePlanArgs),
 
     TurnAborted(TurnAbortedEvent),
diff --git a/codex-rs/rollout-trace/src/protocol_event.rs b/codex-rs/rollout-trace/src/protocol_event.rs
index 3d52798b8d..1e49c82be2 100644
--- a/codex-rs/rollout-trace/src/protocol_event.rs
+++ b/codex-rs/rollout-trace/src/protocol_event.rs
@@ -260,7 +260,6 @@ pub(crate) fn tool_runtime_trace_event(event: &EventMsg) -> Option<ToolRuntimeTr
         | EventMsg::PatchApplyUpdated(_)
         | EventMsg::TurnDiff(_)
         | EventMsg::RealtimeConversationListVoicesResponse(_)
-        | EventMsg::SkillsUpdateAvailable
         | EventMsg::PlanUpdate(_)
         | EventMsg::TurnAborted(_)
         | EventMsg::ShutdownComplete
@@ -333,7 +332,6 @@ pub(crate) fn wrapped_protocol_event_type(event: &EventMsg) -> Option<&'static s
         | EventMsg::PatchApplyEnd(_)
         | EventMsg::TurnDiff(_)
         | EventMsg::RealtimeConversationListVoicesResponse(_)
-        | EventMsg::SkillsUpdateAvailable
         | EventMsg::PlanUpdate(_)
         | EventMsg::EnteredReviewMode(_)
         | EventMsg::ExitedReviewMode(_)
diff --git a/codex-rs/rollout/src/policy.rs b/codex-rs/rollout/src/policy.rs
index 558c3fef98..21b98b4e8d 100644
--- a/codex-rs/rollout/src/policy.rs
+++ b/codex-rs/rollout/src/policy.rs
@@ -169,7 +169,6 @@ fn event_msg_persistence_mode(ev: &EventMsg) -> Option<EventPersistenceMode> {
         | EventMsg::ReasoningContentDelta(_)
         | EventMsg::ReasoningRawContentDelta(_)
         | EventMsg::ImageGenerationBegin(_)
-        | EventMsg::SkillsUpdateAvailable
         | EventMsg::CollabAgentSpawnBegin(_)
         | EventMsg::CollabAgentInteractionBegin(_)
         | EventMsg::CollabWaitingBegin(_)