diff --git a/ai-hub/app/api/routes/skills.py b/ai-hub/app/api/routes/skills.py
index 8020b3e..810bf09 100644
--- a/ai-hub/app/api/routes/skills.py
+++ b/ai-hub/app/api/routes/skills.py
@@ -1,145 +1,351 @@
+import os
+import shutil
+import json
+import logging
+import yaml
+from datetime import datetime
 from fastapi import APIRouter, Depends, HTTPException, Query
 from sqlalchemy.orm import Session
-from typing import List, Optional
+from typing import List, Optional, Any
 from app.db import models
 from app.api import schemas
 from app.api.dependencies import ServiceContainer, get_current_user, get_db
+from app.config import settings
+
+logger = logging.getLogger(__name__)
 
 def create_skills_router(services: ServiceContainer) -> APIRouter:
+    os.makedirs(settings.SKILLS_DIR, exist_ok=True)
     router = APIRouter(prefix="/skills", tags=["Skills"])
+    
+    # We load the FS loader from our new backend system
+    from app.core.skills.fs_loader import fs_loader
 
-    @router.get("/", response_model=List[schemas.SkillResponse])
+    @router.get("/", response_model=List[Any])
     def list_skills(
         db: Session = Depends(get_db),
         current_user: models.User = Depends(get_current_user),
-        feature: Optional[str] = Query(None, description="Filter skills by feature (e.g., 'chat', 'voice')")
+        feature: Optional[str] = Query(None, description="Filter skills by feature (e.g., 'swarm_control', 'voice_chat')")
     ):
-        """List all skills accessible to the user."""
-        # Start queries
-        system_query = db.query(models.Skill).filter(models.Skill.is_system == True)
-        
-        if current_user.role == 'admin':
-            # Admins see ALL skills (system + user-owned for management)
-            user_query = db.query(models.Skill).filter(models.Skill.is_system == False)
-        else:
-            user_query = db.query(models.Skill).filter(
-                models.Skill.owner_id == current_user.id,
-                models.Skill.is_system == False
-            )
-        
-        # Policy: Only show enabled skills to non-admins
-        if current_user.role != 'admin':
-            system_query = system_query.filter(models.Skill.is_enabled == True)
-            user_query = user_query.filter(models.Skill.is_enabled == True)
-            
-        # Target feature filtering
-        if feature:
-            system_skills = [s for s in system_query.all() if feature in (s.features or [])]
-            user_skills = [s for s in user_query.all() if feature in (s.features or [])]
-        else:
-            system_skills = system_query.all()
-            user_skills = user_query.all()
-        
-        # Skills shared with the user's group via Group Policy
-        group_skills = []
-        if current_user.role != 'admin' and current_user.group and current_user.group.policy:
-            group_skill_names = current_user.group.policy.get("skills", [])
-            if group_skill_names:
-                g_query = db.query(models.Skill).filter(
-                    models.Skill.name.in_(group_skill_names),
-                    models.Skill.owner_id != current_user.id,
-                    models.Skill.is_system == False
-                )
-                if current_user.role != 'admin':
-                    g_query = g_query.filter(models.Skill.is_enabled == True)
-                
-                if feature:
-                    group_skills = [s for s in g_query.all() if feature in (s.features or [])]
-                else:
-                    group_skills = g_query.all()
-            
-        return system_skills + user_skills + group_skills
+        """List all skills accessible to the user (via File System)."""
+        all_skills = fs_loader.get_all_skills()
+        filtered = []
 
-    @router.post("/", response_model=schemas.SkillResponse)
+        is_admin = current_user.role == 'admin'
+
+        for s in all_skills:
+            # Enforce RBAC Metadata visibility
+            s_owner = s.get("owner_id")
+            s_sys = s.get("is_system", False)
+            
+            # Admins see everything. Users see their own and system skills.
+            if not is_admin:
+                if s_owner != current_user.id and not s_sys:
+                    continue
+                # If group policies apply, we could add them here in the future
+                
+            # Filter by Feature Folder
+            if feature and feature not in s.get("features", []):
+                continue
+                
+            filtered.append(s)
+            
+        return filtered
+
+    @router.post("/", response_model=Any)
     def create_skill(
         skill: schemas.SkillCreate,
         db: Session = Depends(get_db),
         current_user: models.User = Depends(get_current_user)
     ):
-        """Create a new skill."""
-        existing = db.query(models.Skill).filter(models.Skill.name == skill.name).first()
-        if existing:
-            raise HTTPException(status_code=400, detail="Skill with this name already exists")
+        """Create a new skill folder on the physical filesystem."""
+        feature = skill.features[0] if skill.features else "swarm_control"
+        
+        # We sanitize the name for the folder to prevent path traversal
+        folder_name = "".join([c for c in skill.name if c.isalnum() or c in (" ", "-", "_")]).strip().replace(" ", "_").lower()
+        if not folder_name:
+            raise HTTPException(status_code=400, detail="Invalid skill name.")
             
-        db_skill = models.Skill(
-            name=skill.name,
-            description=skill.description,
-            skill_type=skill.skill_type,
-            config=skill.config,
-            system_prompt=skill.system_prompt,
-            is_enabled=skill.is_enabled,
-            features=skill.features,
-            owner_id=current_user.id,
-            is_system=skill.is_system if current_user.role == 'admin' else False
-        )
-        db.add(db_skill)
-        db.commit()
-        db.refresh(db_skill)
-        return db_skill
+        skill_path = os.path.join(settings.SKILLS_DIR, feature, folder_name)
+        
+        if os.path.exists(skill_path):
+            raise HTTPException(status_code=400, detail="A skill with this ID/folder already exists in this feature sector.")
+            
+        try:
+            os.makedirs(skill_path, exist_ok=True)
+            
+            # Generate the hidden metadata file
+            meta = {
+                "owner_id": current_user.id,
+                "is_system": skill.is_system if current_user.role == 'admin' else False,
+                "extra_metadata": skill.extra_metadata or {"emoji": "🛠️"}
+            }
+            with open(os.path.join(skill_path, ".metadata.json"), "w") as f:
+                json.dump(meta, f, indent=4)
+                
+            # Create a boilerplate SKILL.md
+            content = f"---\nname: {skill.name}\ndescription: {skill.description}\n---\n\n### Execution Logic (Bash)\n```bash\necho \"Executing {skill.name}...\"\n```\n"
+            with open(os.path.join(skill_path, "SKILL.md"), "w") as f:
+                f.write(content)
+                
+        except Exception as e:
+            logger.error(f"Failed to create FS skill: {e}")
+            raise HTTPException(status_code=500, detail=str(e))
+            
+        return {
+            "id": f"fs-{folder_name}",
+            "name": skill.name,
+            "description": skill.description,
+            "skill_type": "local",
+            "is_enabled": True,
+            "features": [feature],
+            "owner_id": current_user.id,
+            "is_system": meta["is_system"],
+            "extra_metadata": meta["extra_metadata"],
+            "created_at": datetime.utcnow().isoformat()
+        }
 
-    @router.put("/{skill_id}", response_model=schemas.SkillResponse)
+    @router.put("/{skill_id}", response_model=Any)
     def update_skill(
-        skill_id: int,
+        skill_id: str,
         skill_update: schemas.SkillUpdate,
         db: Session = Depends(get_db),
         current_user: models.User = Depends(get_current_user)
     ):
-        """Update an existing skill. User must be admin or the owner."""
-        db_skill = db.query(models.Skill).filter(models.Skill.id == skill_id).first()
-        if not db_skill:
-            raise HTTPException(status_code=404, detail="Skill not found")
+        """Update top level metadata of an FS skill (emoji and system flag)."""
+        # skill_id usually follows 'fs-folder_name' from the frontend
+        folder_name = skill_id.replace("fs-", "", 1) if skill_id.startswith("fs-") else skill_id
         
-        # Block modification of system skills
-        if db_skill.is_system:
-            raise HTTPException(status_code=403, detail="System skills cannot be modified.")
-            
-        if db_skill.owner_id != current_user.id and current_user.role != 'admin':
-            raise HTTPException(status_code=403, detail="Not authorized to update this skill")
-            
-        if skill_update.name is not None and skill_update.name != db_skill.name:
-            existing = db.query(models.Skill).filter(models.Skill.name == skill_update.name).first()
-            if existing:
-                raise HTTPException(status_code=400, detail="Skill with this name already exists")
+        # Scan to find which feature it belongs to, since ID alone doesn't contain feature path
+        matched_path = None
+        for feature in os.listdir(settings.SKILLS_DIR):
+            f_path = os.path.join(settings.SKILLS_DIR, feature, folder_name)
+            if os.path.exists(f_path):
+                matched_path = f_path
+                break
                 
-        for key, value in skill_update.model_dump(exclude_unset=True).items():
-            if key == 'is_system' and current_user.role != 'admin':
-                continue
-            setattr(db_skill, key, value)
+        if not matched_path:
+            raise HTTPException(status_code=404, detail="Skill folder not found.")
             
-        db.commit()
-        db.refresh(db_skill)
-        return db_skill
+        meta_path = os.path.join(matched_path, ".metadata.json")
+        try:
+            with open(meta_path, "r") as f:
+                meta = json.load(f)
+        except:
+            meta = fs_loader._ensure_metadata(matched_path, folder_name)
+            
+        if meta.get("is_system") and current_user.role != 'admin':
+             raise HTTPException(status_code=403, detail="System skills cannot be modified.")
+        if meta.get("owner_id") != current_user.id and current_user.role != 'admin':
+             raise HTTPException(status_code=403, detail="Not authorized.")
+             
+        # Update allowed metadata
+        if skill_update.extra_metadata is not None:
+             meta["extra_metadata"] = skill_update.extra_metadata
+        if skill_update.is_system is not None and current_user.role == 'admin':
+             meta["is_system"] = skill_update.is_system
+             
+        # We don't support moving features or renaming folders via API easily right now
+        # The user can just recreate it to keep it simple, or edit SKILL.md.
+             
+        with open(meta_path, "w") as f:
+             json.dump(meta, f, indent=4)
+             
+        # Read the skill model back via fs_loader logic (slow but perfect sync)
+        skills = fs_loader.get_all_skills()
+        for s in skills:
+            if getattr(s, "id", "") == skill_id or s.get("id") == skill_id:
+                return s
+        return {"id": skill_id, "updated": True}
 
     @router.delete("/{skill_id}")
     def delete_skill(
-        skill_id: int,
+        skill_id: str,
         db: Session = Depends(get_db),
         current_user: models.User = Depends(get_current_user)
     ):
-        """Delete a skill."""
-        db_skill = db.query(models.Skill).filter(models.Skill.id == skill_id).first()
-        if not db_skill:
+        """Delete a skill permanently via shutil."""
+        folder_name = skill_id.replace("fs-", "", 1) if skill_id.startswith("fs-") else skill_id
+        matched_path = None
+        for feature in os.listdir(settings.SKILLS_DIR):
+            f_path = os.path.join(settings.SKILLS_DIR, feature, folder_name)
+            if os.path.exists(f_path):
+                matched_path = f_path
+                break
+                
+        if not matched_path:
+            raise HTTPException(status_code=404, detail="Skill folder not found.")
+            
+        meta_path = os.path.join(matched_path, ".metadata.json")
+        try:
+            with open(meta_path, "r") as f:
+                meta = json.load(f)
+        except:
+            meta = {}
+            
+        if meta.get("is_system") and current_user.role != 'admin':
+             raise HTTPException(status_code=403, detail="System skills cannot be deleted.")
+        if meta.get("owner_id") != current_user.id and current_user.role != 'admin':
+             raise HTTPException(status_code=403, detail="Not authorized.")
+             
+        try:
+            shutil.rmtree(matched_path)
+            # Send reload signal
+            return {"message": "Skill directory successfully deleted."}
+        except Exception as e:
+            raise HTTPException(status_code=500, detail=f"Filesystem deletion error: {e}")
+
+
+    # --- Skill File System (VFS) Endpoints ---
+
+    @router.get("/{skill_id}/files", response_model=List[Any])
+    def list_skill_files(
+        skill_id: str,
+        db: Session = Depends(get_db),
+        current_user: models.User = Depends(get_current_user)
+    ):
+        """Get file tree for a skill."""
+        folder_name = skill_id.replace("fs-", "", 1) if skill_id.startswith("fs-") else skill_id
+        matched_path = None
+        for feature in os.listdir(settings.SKILLS_DIR):
+            f_path = os.path.join(settings.SKILLS_DIR, feature, folder_name)
+            if os.path.exists(f_path):
+                matched_path = f_path
+                break
+                
+        if not matched_path:
             raise HTTPException(status_code=404, detail="Skill not found")
             
-        # Block deletion of system skills
-        if db_skill.is_system:
-            raise HTTPException(status_code=403, detail="System skills cannot be deleted.")
+        files = []
+        for root, _, filenames in os.walk(matched_path):
+            for file in filenames:
+                if file == ".metadata.json" or file.startswith('.'): continue
+                file_abs = os.path.join(root, file)
+                file_rel = os.path.relpath(file_abs, matched_path).replace('\\', '/')
+                files.append({"path": file_rel})
+                
+        return files
 
-        if db_skill.owner_id != current_user.id and current_user.role != 'admin':
-            raise HTTPException(status_code=403, detail="Not authorized to delete this skill")
+    @router.get("/{skill_id}/files/{path:path}", response_model=Any)
+    def read_skill_file(
+        skill_id: str,
+        path: str,
+        db: Session = Depends(get_db),
+        current_user: models.User = Depends(get_current_user)
+    ):
+        """Read a specific skill file."""
+        folder_name = skill_id.replace("fs-", "", 1) if skill_id.startswith("fs-") else skill_id
+        matched_path = None
+        for feature in os.listdir(settings.SKILLS_DIR):
+            f_path = os.path.join(settings.SKILLS_DIR, feature, folder_name)
+            if os.path.exists(f_path):
+                matched_path = f_path
+                break
+                
+        if not matched_path:
+            raise HTTPException(status_code=404, detail="Skill not found")
             
-        db.delete(db_skill)
-        db.commit()
-        return {"message": "Skill deleted"}
+        file_abs = os.path.join(matched_path, path)
+        if not os.path.exists(file_abs):
+             raise HTTPException(status_code=404, detail="File not found on disk")
+             
+        try:
+            with open(file_abs, "r", encoding="utf-8") as f:
+                content = f.read()
+            return {"file_path": path, "content": content}
+        except Exception as e:
+            raise HTTPException(status_code=500, detail="Cannot read physical file.")
+
+
+    @router.post("/{skill_id}/files/{path:path}", response_model=Any)
+    def create_or_update_skill_file(
+        skill_id: str,
+        path: str,
+        file_update: schemas.SkillFileUpdate,
+        db: Session = Depends(get_db),
+        current_user: models.User = Depends(get_current_user)
+    ):
+        """Create or update a skill file."""
+        folder_name = skill_id.replace("fs-", "", 1) if skill_id.startswith("fs-") else skill_id
+        matched_path = None
+        for feature in os.listdir(settings.SKILLS_DIR):
+            f_path = os.path.join(settings.SKILLS_DIR, feature, folder_name)
+            if os.path.exists(f_path):
+                matched_path = f_path
+                break
+                
+        if not matched_path:
+            raise HTTPException(status_code=404, detail="Skill not found")
+            
+        meta_path = os.path.join(matched_path, ".metadata.json")
+        try:
+            with open(meta_path, "r") as f:
+                meta = json.load(f)
+        except:
+            meta = {}
+            
+        # Security Guard
+        if meta.get("is_system") and current_user.role != 'admin':
+             raise HTTPException(status_code=403, detail="System skills cannot be modified.")
+        if meta.get("owner_id") != current_user.id and current_user.role != 'admin':
+             raise HTTPException(status_code=403, detail="Not authorized to edit skill files")
+             
+        # Path Traversal Check
+        file_abs = os.path.abspath(os.path.join(matched_path, path))
+        if not file_abs.startswith(os.path.abspath(matched_path)):
+             raise HTTPException(status_code=400, detail="Path traversal not allowed.")
+             
+        os.makedirs(os.path.dirname(file_abs), exist_ok=True)
+        
+        try:
+            with open(file_abs, "w", encoding="utf-8") as f:
+                f.write(file_update.content)
+            return {"file_path": path, "content": file_update.content}
+        except Exception as e:
+            raise HTTPException(status_code=500, detail=f"Failed to write physical file: {e}")
+
+    @router.delete("/{skill_id}/files/{path:path}")
+    def delete_skill_file(
+        skill_id: str,
+        path: str,
+        db: Session = Depends(get_db),
+        current_user: models.User = Depends(get_current_user)
+    ):
+        """Delete a skill file literally from disk."""
+        folder_name = skill_id.replace("fs-", "", 1) if skill_id.startswith("fs-") else skill_id
+        matched_path = None
+        for feature in os.listdir(settings.SKILLS_DIR):
+            f_path = os.path.join(settings.SKILLS_DIR, feature, folder_name)
+            if os.path.exists(f_path):
+                matched_path = f_path
+                break
+                
+        if not matched_path:
+            raise HTTPException(status_code=404, detail="Skill not found")
+            
+        meta_path = os.path.join(matched_path, ".metadata.json")
+        try:
+            with open(meta_path, "r") as f:
+                meta = json.load(f)
+        except:
+            meta = {}
+            
+        if meta.get("is_system") and current_user.role != 'admin':
+             raise HTTPException(status_code=403, detail="System skills cannot be modified.")
+        if meta.get("owner_id") != current_user.id and current_user.role != 'admin':
+             raise HTTPException(status_code=403, detail="Not authorized to edit skill files")
+
+        file_abs = os.path.abspath(os.path.join(matched_path, path))
+        if not file_abs.startswith(os.path.abspath(matched_path)):
+             raise HTTPException(status_code=400, detail="Path traversal not allowed.")
+             
+        if not os.path.exists(file_abs):
+             raise HTTPException(status_code=404, detail="File not found")
+             
+        try:
+            os.remove(file_abs)
+            return {"message": "File removed physically"}
+        except Exception as e:
+            raise HTTPException(status_code=500, detail=f"Could not delete: {e}")
 
     return router
diff --git a/ai-hub/app/api/schemas.py b/ai-hub/app/api/schemas.py
index 7927ccf..a82a82d 100644
--- a/ai-hub/app/api/schemas.py
+++ b/ai-hub/app/api/schemas.py
@@ -1,5 +1,5 @@
 from pydantic import BaseModel, Field, ConfigDict
-from typing import List, Literal, Optional
+from typing import List, Literal, Optional, Union
 from datetime import datetime
 
 # --- User Schemas ---
@@ -112,13 +112,10 @@
     name: str
     description: Optional[str] = None
     skill_type: str = "local" # local, remote_grpc, mcp
-    config: dict = Field(default_factory=dict)
-    system_prompt: Optional[str] = None
     is_enabled: bool = True
     features: List[str] = Field(default_factory=lambda: ["chat"])
     is_system: bool = False
     extra_metadata: dict = Field(default_factory=dict)
-    preview_markdown: Optional[str] = None
 
 class SkillCreate(SkillBase):
     pass
@@ -127,20 +124,34 @@
     name: Optional[str] = None
     description: Optional[str] = None
     skill_type: Optional[str] = None
-    config: Optional[dict] = None
-    system_prompt: Optional[str] = None
     is_enabled: Optional[bool] = None
     features: Optional[List[str]] = None
     is_system: Optional[bool] = None
     extra_metadata: Optional[dict] = None
-    preview_markdown: Optional[str] = None
 
 class SkillResponse(SkillBase):
-    id: int
+    id: Union[int, str]
     owner_id: str
     created_at: datetime
     model_config = ConfigDict(from_attributes=True)
 
+class SkillFileBase(BaseModel):
+    file_path: str
+    content: Optional[str] = None
+
+class SkillFileCreate(SkillFileBase):
+    pass
+
+class SkillFileUpdate(BaseModel):
+    content: str
+
+class SkillFileResponse(SkillFileBase):
+    id: Union[int, str]
+    skill_id: Union[int, str]
+    created_at: Optional[datetime] = None
+    updated_at: Optional[datetime] = None
+    model_config = ConfigDict(from_attributes=True)
+
 # --- Chat Schemas ---
 class ChatRequest(BaseModel):
     """Defines the shape of a request to the /chat endpoint."""
diff --git a/ai-hub/app/config.py b/ai-hub/app/config.py
index 04d4216..8e81bda 100644
--- a/ai-hub/app/config.py
+++ b/ai-hub/app/config.py
@@ -147,6 +147,12 @@
                                get_from_yaml(["application", "secret_key"]) or \
                                self.OIDC_CLIENT_SECRET or "dev-secret-key-1337"
 
+        # --- Directory Settings ---
+        self.DATA_DIR: str = os.getenv("DATA_DIR") or \
+                             get_from_yaml(["application", "data_dir"]) or \
+                             "/app/data" # Hardcoded default for production Docker deployment
+        self.SKILLS_DIR: str = os.path.join(self.DATA_DIR, "skills")
+
         # --- Database Settings ---
         self.DB_MODE: str = os.getenv("DB_MODE") or \
                                 get_from_yaml(["database", "mode"]) or \
diff --git a/ai-hub/app/core/providers/factory.py b/ai-hub/app/core/providers/factory.py
index b304abb..c8deaed 100644
--- a/ai-hub/app/core/providers/factory.py
+++ b/ai-hub/app/core/providers/factory.py
@@ -196,9 +196,30 @@
         info = litellm.get_model_info(full_model)
         if info:
             # Prefer max_input_tokens as it represents the context window
-            # If not present, max_tokens likely represents the full window or the output window
-            return info.get("max_input_tokens") or info.get("max_tokens") or 100000
+            input_tokens = info.get("max_input_tokens")
+            
+            # If litellm gave us an empty value or a suspiciously low value like 8192 
+            # (which is often the max_output_tokens, not the context window), override it
+            if not input_tokens or input_tokens <= 32000:
+                if "gemini" in full_model.lower():
+                    input_tokens = 1048576  # Gemini 1.5 1M context
+                elif "deepseek" in full_model.lower():
+                    input_tokens = 128000
+                elif "gpt-4o" in full_model.lower():
+                    input_tokens = 128000
+                elif "claude" in full_model.lower():
+                    input_tokens = 200000
+                else:
+                    input_tokens = info.get("max_tokens") or 100000
+            
+            return input_tokens
     except:
         pass
         
+    # Final default behavior if completely unknown
+    if "gemini" in full_model.lower():
+        return 1048576
+    elif "deepseek" in full_model.lower():
+        return 128000
+        
     return 100000
\ No newline at end of file
diff --git a/ai-hub/app/core/services/tool.py b/ai-hub/app/core/services/tool.py
index ecc6aa2..f714390 100644
--- a/ai-hub/app/core/services/tool.py
+++ b/ai-hub/app/core/services/tool.py
@@ -33,37 +33,150 @@
         
         tools = [s.to_tool_definition() for s in local_skills]
         
-        # 2. Add DB-defined skills (System skills or user-owned)
-        query = db.query(models.Skill).filter(
-            (models.Skill.is_system == True) | 
-            (models.Skill.owner_id == user_id)
-        ).filter(models.Skill.is_enabled == True)
+        # 2. Add FS-defined skills (System skills or user-owned)
+        from app.core.skills.fs_loader import fs_loader
+        all_fs_skills = fs_loader.get_all_skills()
         
-        if feature:
-            # SQLAlchemy JSON containment check (SQLite specific or generic enough)
-            # For simplicity, we filter in Python if the DB driver is tricky
-            db_skills = query.all()
-            db_skills = [ds for ds in db_skills if feature in (ds.features or [])]
-        else:
-            db_skills = query.all()
+        class _DictObj:
+             def __init__(self, d):
+                  for k, v in d.items():
+                       setattr(self, k, v)
+
+        db_skills = []
+        for fs_skill in all_fs_skills:
+            if fs_skill.get("is_enabled", True) and (fs_skill.get("is_system") or fs_skill.get("owner_id") == user_id):
+                if feature and feature not in fs_skill.get("features", ["chat"]):
+                    continue
+                # Map virtual files array to object arrays for the legacy parsing logic
+                fs_skill["files"] = [_DictObj(f) for f in fs_skill.get("files", [])]
+                db_skills.append(_DictObj(fs_skill))
+
         
+        import litellm
+        max_md_len = 1000
+        try:
+            # Attempt to resolve the active user's model configuration dynamically to get exact context sizes
+            user = db.query(models.User).filter(models.User.id == user_id).first() if db else None
+            m_name = "gemini-2.5-pro"
+            if user and user.preferences:
+                m_name = user.preferences.get("llm_model", m_name)
+            
+            model_info = litellm.get_model_info(m_name)
+            if model_info:
+                max_tokens = model_info.get("max_input_tokens", 8192)
+                # Cap a single skill's instruction block at 5% of the total context window to leave room
+                # for chat history and other plugins, with an absolute roof of 40k chars. (1 token ~= 4 chars)
+                max_md_len = max(min(int(max_tokens * 4 * 0.05), 40000), 1000)
+        except Exception as e:
+            logger.warning(f"Dynamic tool schema truncation failed to query model size: {e}")
+
         for ds in db_skills:
             # Prevent duplicates if name overlaps with local
             if any(t["function"]["name"] == ds.name for t in tools):
                 continue
             
-            # M3: Use the public description, but append internal AI instructions if available
-            # This makes the "system prompt" invisible to end users but fully visible to the Orchestrator.
+            # --- Lazy-Loading VFS Pattern (Phase 3 - Skills as Folders) ---
+            # Extract parameters from SKILL.md frontmatter instead of legacy DB config column
             description = ds.description or ""
-            if ds.system_prompt:
-                description += f"\n\nInternal Intelligence Protocol:\n{ds.system_prompt}"
+            parameters = {}
             
+            skill_md_file = next((f for f in ds.files if f.file_path == "SKILL.md"), None) if ds.files else None
+            
+            if skill_md_file and skill_md_file.content:
+                # If the skill text fits within the model's dynamic safe boundary, provide it directly!
+                if len(skill_md_file.content) > max_md_len:
+                    excerpt = skill_md_file.content[:max_md_len].strip() + "..."
+                    description += (
+                        f"\n\n[VFS Skill] Full instructions available. Call `read_skill_artifact` with "
+                        f"skill_name='{ds.name}', file_path='SKILL.md' to load them before using this tool.\n"
+                        f"Summary: {excerpt}"
+                    )
+                else:
+                    description += f"\n\n[Instructions]\n{skill_md_file.content}"
+                
+                # Parse YAML frontmatter to get the tool schema parameters
+                if skill_md_file.content.startswith("---"):
+                    try:
+                        import yaml
+                        parts = skill_md_file.content.split("---", 2)
+                        if len(parts) >= 3:
+                            fm = yaml.safe_load(parts[1])
+                            parameters = fm.get("config", {}).get("parameters", {})
+                    except Exception as e:
+                        import logging
+                        logger = logging.getLogger(__name__)
+                        logger.warning(f"Error parsing SKILL.md frontmatter for {ds.name}: {e}")
+                
+                # If no parameters found in frontmatter, try parsing markdown directly
+                if not parameters:
+                    try:
+                        import re
+                        # Parse legacy migrated json configs
+                        mig_match = re.search(r"### Tool Config JSON\s+```(?:yaml|json)\s+(.+?)\s+```", skill_md_file.content, re.DOTALL | re.IGNORECASE)
+                        if mig_match:
+                            try:
+                                import json
+                                parameters = json.loads(mig_match.group(1).strip())
+                            except:
+                                pass
+                        
+                        if not parameters:
+                            # Parse Description override (optional)
+                            desc_match = re.search(r"\*\*Description:\*\*\s*(.*?)(?=\n\n|\n#|$)", skill_md_file.content, re.DOTALL | re.IGNORECASE)
+                            if desc_match:
+                                extracted_desc = desc_match.group(1).strip()
+                                # Keep the same logic as above when updating the description if parameters failed
+                                if len(skill_md_file.content) > max_md_len:
+                                    excerpt = skill_md_file.content[:max_md_len].strip() + "..."
+                                    description = (
+                                        f"{extracted_desc}\n\n[VFS Skill] Full instructions available. Call `read_skill_artifact` with "
+                                        f"skill_name='{ds.name}', file_path='SKILL.md' to load them before using this tool.\n"
+                                        f"Summary: {excerpt}"
+                                    )
+                                else:
+                                    description = f"{extracted_desc}\n\n[Instructions]\n{skill_md_file.content}"
+
+                        # Parse Parameters Table
+                        table_pattern = r"\|\s*Name\s*\|\s*Type\s*\|\s*Description\s*\|\s*Required\s*\|\n(?:\|[-:\s]+\|[-:\s]+\|[-:\s]+\|[-:\s]+\|\n)(.*?)(?=\n\n|\n#|$)"
+                        param_table_match = re.search(table_pattern, skill_md_file.content, re.DOTALL | re.IGNORECASE)
+                        if param_table_match:
+                            parameters = {"type": "object", "properties": {}, "required": []}
+                            rows = param_table_match.group(1).strip().split('\n')
+                            for row in rows:
+                                if not row.strip() or '|' not in row: continue
+                                cols = [c.strip() for c in row.split('|')][1:-1]
+                                if len(cols) >= 4:
+                                    p_name = cols[0].replace('`', '').strip()
+                                    p_type = cols[1].strip()
+                                    p_desc = cols[2].strip()
+                                    p_req = cols[3].strip().lower() in ['yes', 'true', '1', 'y']
+                                    
+                                    parameters["properties"][p_name] = {
+                                        "type": p_type,
+                                        "description": p_desc
+                                    }
+                                    if p_req:
+                                        parameters["required"].append(p_name)
+                    except Exception as e:
+                        import logging
+                        logger = logging.getLogger(__name__)
+                        logger.warning(f"Error parsing SKILL.md markdown for {ds.name}: {e}")
+            
+            # Automatically inject logical node parameters into the schema for all tools
+            if not parameters: parameters = {"type": "object", "properties": {}, "required": []}
+            if "properties" not in parameters: parameters["properties"] = {}
+            if "node_id" not in parameters["properties"]:
+                parameters["properties"]["node_id"] = {
+                    "type": "string", 
+                    "description": "Optional specific mesh node ID to execute this on. Leave empty to auto-use the session's first attached node."
+                }
+                
             tools.append({
                 "type": "function",
                 "function": {
                     "name": ds.name,
                     "description": description,
-                    "parameters": ds.config.get("parameters", {})
+                    "parameters": parameters
                 }
             })
             
@@ -79,17 +192,54 @@
             result = await skill.execute(**arguments)
             return result.dict()
         
-        # 2. Handle System / DB Skills
-        if db:
-            db_skill = db.query(models.Skill).filter(models.Skill.name == tool_name).first()
-            if db_skill and db_skill.is_system:
-                return await self._execute_system_skill(db_skill, arguments, user_id=user_id, db=db, session_id=session_id, session_db_id=session_db_id, on_event=on_event)
+        # 2. Check the tool_registry for lightweight plugins (e.g. read_skill_artifact)
+        # These are system agents that DO NOT need a full SubAgent loop — their prepare_task
+        # returns a synchronous function we can call directly.
+        plugin = tool_registry.get_plugin(tool_name)
+        if plugin:
+            orchestrator = getattr(self._services, "orchestrator", None)
+            context = {
+                "db": db,
+                "user_id": user_id,
+                "session_id": session_id,
+                "node_id": arguments.get("node_id"),
+                "node_ids": arguments.get("node_ids"),
+                "services": self._services,
+                "orchestrator": orchestrator,
+                "assistant": orchestrator.assistant if orchestrator else None,
+                "on_event": on_event
+            }
+            task_fn, task_args = plugin.prepare_task(arguments, context)
+            if not task_fn:
+                return task_args  # error dict
+            try:
+                import asyncio
+                if asyncio.iscoroutinefunction(task_fn):
+                    return await task_fn(**task_args)
+                else:
+                    return task_fn(**task_args)
+            except Exception as e:
+                logger.exception(f"Plugin '{tool_name}' execution failed: {e}")
+                return {"success": False, "error": str(e)}
+        
+        # 3. Handle System / FS Skills (full SubAgent or Bash)
+        from app.core.skills.fs_loader import fs_loader
+        all_fs_skills = fs_loader.get_all_skills()
+        for fs_skill in all_fs_skills:
+             if fs_skill.get("name") == tool_name:
+                  class _DictObj:
+                       def __init__(self, d):
+                            for k, v in d.items():
+                                 setattr(self, k, v)
+                  fs_skill["files"] = [_DictObj(f) for f in fs_skill.get("files", [])]
+                  db_skill_mock = _DictObj(fs_skill)
+                  return await self._execute_system_skill(db_skill_mock, arguments, user_id=user_id, db=db, session_id=session_id, session_db_id=session_db_id, on_event=on_event)
         
         logger.error(f"Tool '{tool_name}' not found or handled yet.")
         return {"success": False, "error": "Tool not found"}
 
-    async def _execute_system_skill(self, skill: models.Skill, args: Dict[str, Any], user_id: str = None, db: Session = None, session_id: str = None, session_db_id: int = None, on_event = None) -> Any:
-        """Routes system skill execution to a stateful SubAgent."""
+    async def _execute_system_skill(self, skill: Any, args: Dict[str, Any], user_id: str = None, db: Session = None, session_id: str = None, session_db_id: int = None, on_event = None) -> Any:
+        """Routes FS skill execution to a stateful SubAgent or Dynamic Plugin."""
         from app.core.services.sub_agent import SubAgent
         from app.core.providers.factory import get_llm_provider
         
@@ -104,6 +254,11 @@
             if session:
                 attached = session.attached_node_ids or []
                 
+                # Implicit fallback to first attached node if no target was specified
+                if not node_id and not node_ids and attached:
+                    node_id = attached[0]
+                    args["node_id"] = node_id
+                
                 # Allow virtual node IDs for system maintenance
                 allowed_ids = attached + ["hub", "server", "local"]
                 
@@ -172,7 +327,55 @@
 
         plugin = tool_registry.get_plugin(skill.name)
         if not plugin:
-             return {"success": False, "error": f"Tool implementation '{skill.name}' not found in registry"}
+            # Check if this is a Dynamic Bash Skill
+            bash_logic = None
+            skill_md_file = next((f for f in skill.files if f.file_path == "SKILL.md"), None) if getattr(skill, "files", None) else None
+            if skill_md_file and skill_md_file.content:
+                import re
+                # Broadened regex: Allows 3-6 hashes, any title containing "Execution Logic", and handles files ending without newlines.
+                bash_match = re.search(r"#{3,6}\s*Execution Logic.*?```bash\s*\n(.*?)(?:```|\Z)", skill_md_file.content, re.DOTALL | re.IGNORECASE)
+                if bash_match:
+                    bash_logic = bash_match.group(1).strip()
+            
+            if bash_logic:
+                class DynamicBashPlugin:
+                    name = skill.name
+                    retries = 0
+                    def prepare_task(self, invoke_args, invoke_context):
+                        cmd = bash_logic
+                        for k, v in invoke_args.items():
+                            cmd = cmd.replace(f"${{{k}}}", str(v))
+                            
+                        timeout = int(invoke_args.get("timeout", 60))
+                        node_id = invoke_context.get("node_id")
+                        node_ids = invoke_context.get("node_ids")
+                        resolved_sid = invoke_context.get("session_id")
+                        assistant = invoke_context.get("assistant")
+                        services = invoke_context.get("services")
+                        
+                        if node_id in ["hub", "server", "local"] or (node_ids and any(nid in ["hub", "server", "local"] for nid in node_ids)):
+                            def _hub_command(**kwargs):
+                                import subprocess, os
+                                cwd = os.getcwd()
+                                if kwargs.get("resolved_sid") and getattr(services, "orchestrator", None):
+                                    try: cwd = services.orchestrator.mirror.get_workspace_path(kwargs.get("resolved_sid"))
+                                    except: pass
+                                try:
+                                    proc = subprocess.run(kwargs.get("cmd"), shell=True, capture_output=True, text=True, timeout=kwargs.get("timeout"), cwd=cwd)
+                                    return {"status": "SUCCESS" if proc.returncode == 0 else "FAILED", "stdout": proc.stdout, "stderr": proc.stderr, "exit_code": proc.returncode, "node_id": "hub"}
+                                except subprocess.TimeoutExpired as e:
+                                    return {"status": "TIMEOUT", "stdout": e.stdout or "", "stderr": e.stderr or "", "error": "Command timed out"}
+                                except Exception as e:
+                                    return {"status": "ERROR", "error": str(e)}
+                            return _hub_command, {"cmd": cmd, "timeout": timeout, "resolved_sid": resolved_sid}
+                        elif node_ids and isinstance(node_ids, list):
+                            return assistant.dispatch_swarm, {"node_ids": node_ids, "cmd": cmd, "timeout": timeout, "session_id": resolved_sid, "no_abort": False}
+                        elif node_id:
+                            return assistant.dispatch_single, {"node_id": node_id, "cmd": cmd, "timeout": timeout, "session_id": resolved_sid, "no_abort": False}
+                        return None, {"success": False, "error": "target node_id or node_ids is required for Bash execution"}
+                plugin = DynamicBashPlugin()
+            else:
+                return {"success": False, "error": f"Tool implementation '{skill.name}' not found in registry and no Bash logic found in SKILL.md"}
 
         context = {
              "db": db,
@@ -211,59 +414,60 @@
                     return {"success": False, "error": res["error"], "sub_agent_status": sub_agent.status}
                 
                 # M6: Post-processing for Binary Artifacts (Screenshots, etc.)
-                if skill.name == "browser_automation_agent" and isinstance(res, dict):
-                    # Organise browser data by session for better UX
-                    if resolved_sid and resolved_sid != "__fs_explorer__":
-                        try:
-                            abs_workspace = assistant.mirror.get_workspace_path(resolved_sid)
-                            # M6: Use .browser_data (ignored from node sync)
-                            base_dir = os.path.join(abs_workspace, ".browser_data")
-                            os.makedirs(base_dir, exist_ok=True)
-                            
-                            timestamp = int(time.time())
-                            action = args.get("action", "unknown").lower()
-                            
-                            # Clean filename for the image: {timestamp}_{action}.png
-                            # This allows better "next/prev" sorting in the parent gallery
-                            ss_filename = f"{timestamp}_{action}.png"
+                if isinstance(res, dict):
+                    # Unconditionally prevent binary data from leaking into the JSON serializer
+                    screenshot_bits = res.pop("_screenshot_bytes", None)
+                    
+                    if skill.name == "browser_automation_agent":
+                        # Organise browser data by session for better UX
+                        if resolved_sid and resolved_sid != "__fs_explorer__":
+                            try:
+                                abs_workspace = assistant.mirror.get_workspace_path(resolved_sid)
+                                # M6: Use .browser_data (ignored from node sync)
+                                base_dir = os.path.join(abs_workspace, ".browser_data")
+                                os.makedirs(base_dir, exist_ok=True)
+                                
+                                timestamp = int(time.time())
+                                action = args.get("action", "unknown").lower()
+                                
+                                # Clean filename for the image: {timestamp}_{action}.png
+                                ss_filename = f"{timestamp}_{action}.png"
 
-                            # Save Screenshot if available
-                            if "_screenshot_bytes" in res:
-                                bits = res.pop("_screenshot_bytes")
-                                if bits:
+                                # Save Screenshot if available
+                                if screenshot_bits:
                                     ss_path = os.path.join(base_dir, ss_filename)
                                     with open(ss_path, "wb") as f:
-                                        f.write(bits)
+                                        f.write(screenshot_bits)
                                     res["screenshot_url"] = f"/.browser_data/{resolved_sid}/{ss_filename}"
                                     res["_visual_feedback"] = f"Action screenshot captured: {res['screenshot_url']}"
 
-                            # Save Metadata/A11y into a hidden or specific sub-folder if needed, 
-                            # but keep images in the root of the session for quick gallery view.
-                            action_dir = os.path.join(base_dir, ".metadata", f"{timestamp}_{action}")
-                            os.makedirs(action_dir, exist_ok=True)
+                                # Save Metadata/A11y into a hidden or specific sub-folder if needed, 
+                                # but keep images in the root of the session for quick gallery view.
+                                action_dir = os.path.join(base_dir, ".metadata", f"{timestamp}_{action}")
+                                os.makedirs(action_dir, exist_ok=True)
 
-                            # Save Metadata/Result for easy debugging in file explorer
-                            import json
-                            meta = {
-                                "timestamp": timestamp,
-                                "action": action,
-                                "url": res.get("url"),
-                                "title": res.get("title"),
-                                "success": res.get("success"),
-                                "error": res.get("error"),
-                                "eval_result": res.get("eval_result")
-                            }
-                            with open(os.path.join(action_dir, "metadata.json"), "w") as f:
-                                json.dump(meta, f, indent=2)
-                            
-                            # Optional: Save A11y summary for quick viewing
-                            if "a11y_summary" in res:
-                                with open(os.path.join(action_dir, "a11y_summary.txt"), "w") as f:
-                                    f.write(res["a11y_summary"])
+                                # Save Metadata/Result for easy debugging in file explorer
+                                import json
+                                meta = {
+                                    "timestamp": timestamp,
+                                    "action": action,
+                                    "url": res.get("url"),
+                                    "title": res.get("title"),
+                                    "success": res.get("success"),
+                                    "error": res.get("error"),
+                                    "eval_result": res.get("eval_result")
+                                }
+                                with open(os.path.join(action_dir, "metadata.json"), "w") as f:
+                                    json.dump(meta, f, indent=2)
+                                
+                                # Optional: Save A11y summary for quick viewing
+                                if "a11y_summary" in res:
+                                    with open(os.path.join(action_dir, "a11y_summary.txt"), "w") as f:
+                                        f.write(res["a11y_summary"])
 
-                            logger.info(f"[ToolService] Browser artifacts saved to: {action_dir}")
-                        except Exception as sse:
-                            logger.warning(f"Failed to persist browser data to workspace: {sse}")
+                                logger.info(f"[ToolService] Browser artifacts saved to: {action_dir}")
+                            except Exception as sse:
+                                logger.warning(f"Failed to persist browser data to workspace: {sse}")
 
                 logger.info(f"[ToolService] System skill '{skill.name}' completed (Status: {sub_agent.status}).")
                 return res
diff --git a/ai-hub/app/core/skills/bootstrap.py b/ai-hub/app/core/skills/bootstrap.py
index 7112500..7e276ca 100644
--- a/ai-hub/app/core/skills/bootstrap.py
+++ b/ai-hub/app/core/skills/bootstrap.py
@@ -29,29 +29,43 @@
             logger.info(f"Syncing system skill: {skill_def['name']}")
             existing.description = skill_def.get("description")
             existing.skill_type = skill_def.get("skill_type")
-            existing.config = skill_def.get("config")
             existing.is_enabled = skill_def.get("is_enabled", True)
             existing.features = skill_def.get("features", ["swarm_control"])
             existing.extra_metadata = skill_def.get("extra_metadata", {})
-            existing.preview_markdown = skill_def.get("preview_markdown")
-            existing.system_prompt = skill_def.get("system_prompt")
             existing.is_system = True
             existing.owner_id = admin.id
+            db.commit() # Commit to get ID for VFS files
+            target_skill = existing
         else:
             logger.info(f"Creating new system skill: {skill_def['name']}")
-            new_skill = models.Skill(
+            target_skill = models.Skill(
                 name=skill_def["name"],
                 description=skill_def.get("description"),
                 skill_type=skill_def.get("skill_type"),
-                config=skill_def.get("config", {}),
                 is_enabled=skill_def.get("is_enabled", True),
                 features=skill_def.get("features", ["swarm_control"]),
                 extra_metadata=skill_def.get("extra_metadata", {}),
-                preview_markdown=skill_def.get("preview_markdown"),
                 is_system=True,
                 owner_id=admin.id
             )
-            db.add(new_skill)
+            db.add(target_skill)
+            db.commit() # Commit to get ID
+            
+        # --- Update VFS ---
+        vfs_files = skill_def.get("_vfs_files", [])
+        existing_files = db.query(models.SkillFile).filter(models.SkillFile.skill_id == target_skill.id).all()
+        existing_file_map = {f.file_path: f for f in existing_files}
+        
+        for vf in vfs_files:
+            if vf["path"] in existing_file_map:
+                existing_file_map[vf["path"]].content = vf["content"]
+                del existing_file_map[vf["path"]]
+            else:
+                db.add(models.SkillFile(skill_id=target_skill.id, file_path=vf["path"], content=vf["content"]))
+                
+        # Delete any files that were removed from the filesystem
+        for removed_file in existing_file_map.values():
+            db.delete(removed_file)
     
     try:
         db.commit()
diff --git a/ai-hub/app/core/skills/fs_loader.py b/ai-hub/app/core/skills/fs_loader.py
new file mode 100644
index 0000000..84a6024
--- /dev/null
+++ b/ai-hub/app/core/skills/fs_loader.py
@@ -0,0 +1,120 @@
+import os
+import yaml
+import json
+import logging
+from typing import List, Dict, Any
+from app.config import settings
+
+logger = logging.getLogger(__name__)
+
+class FileSystemSkillLoader:
+    def __init__(self, base_dir: str):
+        self.base_dir = base_dir
+
+    def _ensure_metadata(self, folder_path: str, skill_name: str, is_system: bool = False):
+        """
+        Auto-generates a .metadata.json file if it's missing.
+        Assigns 'admin' as default owner if it's auto-generated during boot.
+        """
+        meta_path = os.path.join(folder_path, ".metadata.json")
+        if not os.path.exists(meta_path):
+            default_metadata = {
+                "owner_id": "admin",
+                "is_system": is_system,
+                "extra_metadata": {"emoji": "🛠️"}
+            }
+            try:
+                with open(meta_path, "w") as f:
+                    json.dump(default_metadata, f, indent=4)
+                logger.info(f"Generated default .metadata.json for skill '{skill_name}'")
+            except Exception as e:
+                logger.error(f"Failed to generate metadata for {skill_name}: {e}")
+            return default_metadata
+            
+        try:
+            with open(meta_path, "r") as f:
+                return json.load(f)
+        except Exception as e:
+            logger.error(f"Error reading {meta_path}: {e}")
+            return {}
+
+    def get_all_skills(self) -> List[Dict[str, Any]]:
+        """
+        Recursively walks the base direction and parses all SKILL.md rules 
+        into the common dictionary schema used by the orchestrator.
+        """
+        skills = []
+        if not os.path.exists(self.base_dir):
+            return skills
+
+        # Level 1 directories define Features (e.g., /data/skills/swarm_control)
+        for feature in os.listdir(self.base_dir):
+            feature_path = os.path.join(self.base_dir, feature)
+            if not os.path.isdir(feature_path):
+                continue
+                
+            # Level 2 directories define the specific Skills
+            for skill_id in os.listdir(feature_path):
+                skill_path = os.path.join(feature_path, skill_id)
+                if not os.path.isdir(skill_path):
+                    continue
+                    
+                skill_md_path = os.path.join(skill_path, "SKILL.md")
+                if not os.path.exists(skill_md_path):
+                    continue
+
+                try:
+                    with open(skill_md_path, "r", encoding='utf-8') as f:
+                        skill_content = f.read()
+
+                    # Create virtual file schema
+                    vfs_files = []
+                    for root, _, files in os.walk(skill_path):
+                        for file in files:
+                            # Hide .metadata.json and macOS .DS_Store from the VFS visible to LLMs
+                            if file == ".metadata.json" or file.startswith('.'):
+                                continue
+                            file_abs = os.path.join(root, file)
+                            file_rel = os.path.relpath(file_abs, skill_path).replace('\\', '/')
+                            try:
+                                with open(file_abs, "r", encoding='utf-8') as ff:
+                                    vfs_files.append({"file_path": file_rel, "content": ff.read()})
+                            except Exception:
+                                pass # skip binary or unreadable
+                                
+                    # Extract or Generate Metadata
+                    metadata = self._ensure_metadata(skill_path, skill_id, is_system=False)
+
+                    # Extract Description directly from SKILL.md (Fallback or yaml frontmatter)
+                    skill_name = skill_id
+                    skill_desc = ""
+                    
+                    if skill_content.startswith("---"):
+                        parts = skill_content.split("---", 2)
+                        if len(parts) >= 3:
+                            frontmatter = yaml.safe_load(parts[1]) or {}
+                            skill_name = frontmatter.get("name", skill_name)
+                            skill_desc = frontmatter.get("description", "")
+                    
+                    # Generate the legacy internal dict schema
+                    skill_def = {
+                        "id": f"fs-{skill_id}", 
+                        "name": skill_name,
+                        "description": skill_desc or f"Skill loaded dynamically from {skill_id}",
+                        "skill_type": "local",
+                        "is_enabled": True,
+                        "features": [feature], # Sourced directly from folder hierarchy
+                        "is_system": metadata.get("is_system", False),
+                        "owner_id": metadata.get("owner_id", "admin"),
+                        "extra_metadata": metadata.get("extra_metadata", {"emoji": "🛠️"}),
+                        "files": vfs_files
+                    }
+                    skills.append(skill_def)
+                    
+                except Exception as e:
+                    logger.error(f"Error parsing FS Skill at {skill_path}: {e}")
+
+        return skills
+
+# Create a global instance initialized with the data directory config
+fs_loader = FileSystemSkillLoader(base_dir=os.path.join(settings.DATA_DIR, "skills"))
diff --git a/ai-hub/app/core/skills/loader.py b/ai-hub/app/core/skills/loader.py
index 10e403d..4cbea57 100644
--- a/ai-hub/app/core/skills/loader.py
+++ b/ai-hub/app/core/skills/loader.py
@@ -25,21 +25,19 @@
                             
                             skill_def = frontmatter
                             
-                            # Split body into Documentation and AI Instructions
-                            # Convention: Use common headers or tags to denote the start of AI instructions
-                            human_docs = body
-                            ai_instructions = ""
+                            vfs_files = []
+                            for root, _, files in os.walk(item_path):
+                                for file in files:
+                                    if file.startswith('.'): continue
+                                    file_abs = os.path.join(root, file)
+                                    file_rel = os.path.relpath(file_abs, item_path).replace('\\', '/')
+                                    try:
+                                        with open(file_abs, "r") as ff:
+                                            vfs_files.append({"path": file_rel, "content": ff.read()})
+                                    except Exception:
+                                        pass
                             
-                            separators = ["# AI Instructions", "# Intelligence Protocol", "<!-- ai-instructions -->"]
-                            for sep in separators:
-                                if sep in body:
-                                    split_parts = body.split(sep, 1)
-                                    human_docs = split_parts[0].strip()
-                                    ai_instructions = split_parts[1].strip()
-                                    break
-                            
-                            skill_def["preview_markdown"] = human_docs
-                            skill_def["system_prompt"] = ai_instructions
+                            skill_def["_vfs_files"] = vfs_files
                             
                             # Ensure metadata exists
                             if "extra_metadata" not in skill_def:
diff --git a/ai-hub/app/core/tools/definitions/read_skill_artifact.py b/ai-hub/app/core/tools/definitions/read_skill_artifact.py
new file mode 100644
index 0000000..f6b7e11
--- /dev/null
+++ b/ai-hub/app/core/tools/definitions/read_skill_artifact.py
@@ -0,0 +1,64 @@
+from typing import Dict, Any, Tuple, Callable, Optional
+from app.core.tools.base import BaseToolPlugin
+import logging
+
+logger = logging.getLogger(__name__)
+
+
+class ReadSkillArtifactTool(BaseToolPlugin):
+    """
+    Lazy-loading tool that allows the AI agent to read any file stored in
+    the Skill Virtual File System (VFS) on demand.
+
+    Instead of injecting the entire skill system_prompt or 1000-line scripts
+    into the initial context window, the agent is given only a brief summary
+    and can call this tool to read the relevant SKILL.md or any script in
+    the /scripts/ or /artifacts/ directories when it needs them.
+    """
+
+    @property
+    def name(self) -> str:
+        return "read_skill_artifact"
+
+    @property
+    def retries(self) -> int:
+        return 0  # No retries needed — it's a simple DB read
+
+    def prepare_task(self, args: Dict[str, Any], context: Dict[str, Any]) -> Tuple[Optional[Callable], Dict[str, Any]]:
+        skill_name = args.get("skill_name", "").strip()
+        file_path = args.get("file_path", "SKILL.md").strip()
+        db = context.get("db")
+
+        if not skill_name:
+            return None, {"success": False, "error": "skill_name is required"}
+        if not db:
+            return None, {"success": False, "error": "Database context not available"}
+
+        def _read_artifact(skill_name: str, file_path: str) -> dict:
+            from app.db import models as m
+
+            skill = db.query(m.Skill).filter(m.Skill.name == skill_name).first()
+            if not skill:
+                return {"success": False, "error": f"Skill '{skill_name}' not found."}
+
+            skill_file = (
+                db.query(m.SkillFile)
+                .filter(m.SkillFile.skill_id == skill.id, m.SkillFile.file_path == file_path)
+                .first()
+            )
+            if not skill_file:
+                return {
+                    "success": False,
+                    "error": f"File '{file_path}' not found in skill '{skill_name}'.",
+                    "hint": "Use list_skill_files to discover available files."
+                }
+
+            logger.info(f"[ReadSkillArtifact] Lazy-loaded '{file_path}' from skill '{skill_name}' ({len(skill_file.content or '')} chars)")
+            return {
+                "success": True,
+                "skill_name": skill_name,
+                "file_path": file_path,
+                "content": skill_file.content or ""
+            }
+
+        return _read_artifact, {"skill_name": skill_name, "file_path": file_path}
diff --git a/ai-hub/app/db/migrate.py b/ai-hub/app/db/migrate.py
index 4abf9f6..ac6fb85 100644
--- a/ai-hub/app/db/migrate.py
+++ b/ai-hub/app/db/migrate.py
@@ -160,17 +160,37 @@
             except Exception as e:
                 logger.error(f"Failed to create 'skill_group_access': {e}")
 
-        # --- Skill table migrations ---
+        # Create skill_files table if it doesn't exist
+        if not inspector.has_table("skill_files"):
+            logger.info("Creating table 'skill_files'...")
+            try:
+                conn.execute(text("""
+                    CREATE TABLE IF NOT EXISTS skill_files (
+                        id         INTEGER PRIMARY KEY AUTOINCREMENT,
+                        skill_id   INTEGER NOT NULL REFERENCES skills(id),
+                        file_path  TEXT    NOT NULL,
+                        content    TEXT,
+                        created_at DATETIME DEFAULT CURRENT_TIMESTAMP,
+                        updated_at DATETIME DEFAULT CURRENT_TIMESTAMP
+                    )
+                """))
+                
+                conn.execute(text("CREATE INDEX IF NOT EXISTS idx_skill_files_skill_id ON skill_files(skill_id)"))
+                conn.execute(text("CREATE INDEX IF NOT EXISTS idx_skill_files_file_path ON skill_files(file_path)"))
+                
+                conn.commit()
+                logger.info("Table 'skill_files' created.")
+            except Exception as e:
+                logger.error(f"Failed to create 'skill_files': {e}")
+
         if inspector.has_table("skills"):
             skill_columns = [c["name"] for c in inspector.get_columns("skills")]
             skill_required_columns = [
-                ("system_prompt", "TEXT"),
                 ("is_enabled",    "INTEGER DEFAULT 1"),
                 ("features",      "TEXT DEFAULT '[\"chat\"]'"),
                 ("is_system",     "INTEGER DEFAULT 0"),
                 ("skill_type",    "TEXT DEFAULT 'local'"),
-                ("extra_metadata", "TEXT DEFAULT '{}'"),
-                ("preview_markdown", "TEXT"),
+                ("extra_metadata", "TEXT DEFAULT '{}'")
             ]
             for col_name, col_type in skill_required_columns:
                 if col_name not in skill_columns:
@@ -181,6 +201,18 @@
                         logger.info(f"Successfully added '{col_name}' to 'skills'.")
                     except Exception as e:
                         logger.error(f"Failed to add column '{col_name}' to 'skills': {e}")
+                        
+            # Remove deprecated columns
+            deprecated_columns = ["system_prompt", "preview_markdown", "config"]
+            for col_name in deprecated_columns:
+                if col_name in skill_columns:
+                    logger.info(f"Dropping deprecated column '{col_name}' from 'skills' table...")
+                    try:
+                        conn.execute(text(f"ALTER TABLE skills DROP COLUMN {col_name}"))
+                        conn.commit()
+                        logger.info(f"Successfully dropped '{col_name}' from 'skills'.")
+                    except Exception as e:
+                        logger.error(f"Failed to drop column '{col_name}' from 'skills'. SQLite might not support drop column: {e}")
 
     logger.info("Database migrations complete.")
 
diff --git a/ai-hub/app/db/models/__init__.py b/ai-hub/app/db/models/__init__.py
index 0e1d233..9850d37 100644
--- a/ai-hub/app/db/models/__init__.py
+++ b/ai-hub/app/db/models/__init__.py
@@ -1,13 +1,13 @@
 from .user import User, Group
 from .session import Session, Message
 from .document import Document, VectorMetadata
-from .asset import PromptTemplate, Skill, SkillGroupAccess, MCPServer, AssetPermission
+from .asset import PromptTemplate, Skill, SkillFile, SkillGroupAccess, MCPServer, AssetPermission
 from .node import AgentNode, NodeGroupAccess
 
 __all__ = [
     "User", "Group",
     "Session", "Message",
     "Document", "VectorMetadata",
-    "PromptTemplate", "Skill", "SkillGroupAccess", "MCPServer", "AssetPermission",
+    "PromptTemplate", "Skill", "SkillFile", "SkillGroupAccess", "MCPServer", "AssetPermission",
     "AgentNode", "NodeGroupAccess"
 ]
diff --git a/ai-hub/app/db/models/asset.py b/ai-hub/app/db/models/asset.py
index 142ed8b..af17e56 100644
--- a/ai-hub/app/db/models/asset.py
+++ b/ai-hub/app/db/models/asset.py
@@ -1,5 +1,5 @@
 from datetime import datetime
-from sqlalchemy import Column, Integer, String, Text, DateTime, ForeignKey, Boolean, JSON
+from sqlalchemy import Column, Integer, String, Text, DateTime, ForeignKey, Boolean, JSON, LargeBinary
 from sqlalchemy.orm import relationship
 from ..database import Base
 
@@ -32,21 +32,19 @@
     name = Column(String, unique=True, index=True, nullable=False)
     description = Column(String, nullable=True)
     skill_type = Column(String, default="local", nullable=False)
-    config = Column(JSON, default={}, nullable=True)
     
-    system_prompt = Column(Text, nullable=True)
     is_enabled = Column(Boolean, default=True)
     features = Column(JSON, default=["chat"], nullable=True)
     
     owner_id = Column(String, ForeignKey('users.id'), nullable=False)
     is_system = Column(Boolean, default=False)
     
-    preview_markdown = Column(Text, nullable=True)
     extra_metadata = Column(JSON, default={}, nullable=True)
     
     created_at = Column(DateTime, default=datetime.utcnow)
     
     owner = relationship("User")
+    files = relationship("SkillFile", back_populates="skill", cascade="all, delete-orphan")
 
     def __repr__(self):
         return f"<Skill(name='{self.name}', type='{self.skill_type}')>"
@@ -64,6 +62,22 @@
     skill = relationship("Skill")
     group = relationship("Group")
 
+class SkillFile(Base):
+    __tablename__ = 'skill_files'
+    
+    id = Column(Integer, primary_key=True, index=True)
+    skill_id = Column(Integer, ForeignKey('skills.id'), nullable=False)
+    file_path = Column(String, index=True, nullable=False)
+    content = Column(Text, nullable=True)
+    
+    created_at = Column(DateTime, default=datetime.utcnow)
+    updated_at = Column(DateTime, default=datetime.utcnow, onupdate=datetime.utcnow)
+    
+    skill = relationship("Skill", back_populates="files")
+
+    def __repr__(self):
+        return f"<SkillFile(skill_id={self.skill_id}, path='{self.file_path}')>"
+
 class MCPServer(Base):
     __tablename__ = 'mcp_servers'
 
diff --git a/ai-hub/docs/api_reference/models.md b/ai-hub/docs/api_reference/models.md
index fccfdfe..75c310b 100644
--- a/ai-hub/docs/api_reference/models.md
+++ b/ai-hub/docs/api_reference/models.md
@@ -381,6 +381,7 @@
 |----------|------|-------------|
 | `source` | `string` | 'empty' | 'server' | 'node_local' |
 | `path` | `anyOf` |  |
+| `source_node_id` | `anyOf` |  |
 
 ## `NodeDispatchRequest`
 
@@ -581,33 +582,18 @@
 | `name*` | `string` |  |
 | `description` | `anyOf` |  |
 | `skill_type` | `string` |  |
-| `config` | `object` |  |
-| `system_prompt` | `anyOf` |  |
 | `is_enabled` | `boolean` |  |
 | `features` | `array` |  |
 | `is_system` | `boolean` |  |
 | `extra_metadata` | `object` |  |
-| `preview_markdown` | `anyOf` |  |
 
-## `SkillResponse`
+## `SkillFileUpdate`
 
 **Type:** `object`
 
 | Property | Type | Description |
 |----------|------|-------------|
-| `name*` | `string` |  |
-| `description` | `anyOf` |  |
-| `skill_type` | `string` |  |
-| `config` | `object` |  |
-| `system_prompt` | `anyOf` |  |
-| `is_enabled` | `boolean` |  |
-| `features` | `array` |  |
-| `is_system` | `boolean` |  |
-| `extra_metadata` | `object` |  |
-| `preview_markdown` | `anyOf` |  |
-| `id*` | `integer` |  |
-| `owner_id*` | `string` |  |
-| `created_at*` | `string` |  |
+| `content*` | `string` |  |
 
 ## `SkillUpdate`
 
@@ -618,13 +604,10 @@
 | `name` | `anyOf` |  |
 | `description` | `anyOf` |  |
 | `skill_type` | `anyOf` |  |
-| `config` | `anyOf` |  |
-| `system_prompt` | `anyOf` |  |
 | `is_enabled` | `anyOf` |  |
 | `features` | `anyOf` |  |
 | `is_system` | `anyOf` |  |
 | `extra_metadata` | `anyOf` |  |
-| `preview_markdown` | `anyOf` |  |
 
 ## `SpeechRequest`
 
diff --git a/ai-hub/docs/api_reference/skills.md b/ai-hub/docs/api_reference/skills.md
index 9b38855..5bd5862 100644
--- a/ai-hub/docs/api_reference/skills.md
+++ b/ai-hub/docs/api_reference/skills.md
@@ -4,13 +4,13 @@
 
 **Summary:** List Skills
 
-**Description:** List all skills accessible to the user.
+**Description:** List all skills accessible to the user (via File System).
 
 #### Parameters
 
 | Name | In | Required | Type | Description |
 |------|----|----------|------|-------------|
-| `feature` | query | No | anyOf | Filter skills by feature (e.g., 'chat', 'voice') |
+| `feature` | query | No | anyOf | Filter skills by feature (e.g., 'swarm_control', 'voice_chat') |
 | `x-user-id` | header | No | anyOf |  |
 
 #### Responses
@@ -35,7 +35,7 @@
 
 **Summary:** Create Skill
 
-**Description:** Create a new skill.
+**Description:** Create a new skill folder on the physical filesystem.
 
 #### Parameters
 
@@ -74,13 +74,13 @@
 
 **Summary:** Update Skill
 
-**Description:** Update an existing skill. User must be admin or the owner.
+**Description:** Update top level metadata of an FS skill (emoji and system flag).
 
 #### Parameters
 
 | Name | In | Required | Type | Description |
 |------|----|----------|------|-------------|
-| `skill_id` | path | Yes | integer |  |
+| `skill_id` | path | Yes | string |  |
 | `x-user-id` | header | No | anyOf |  |
 
 #### Request Body
@@ -114,13 +114,13 @@
 
 **Summary:** Delete Skill
 
-**Description:** Delete a skill.
+**Description:** Delete a skill permanently via shutil.
 
 #### Parameters
 
 | Name | In | Required | Type | Description |
 |------|----|----------|------|-------------|
-| `skill_id` | path | Yes | integer |  |
+| `skill_id` | path | Yes | string |  |
 | `x-user-id` | header | No | anyOf |  |
 
 #### Responses
@@ -141,3 +141,139 @@
 
 ---
 
+## GET `/skills/{skill_id}/files`
+
+**Summary:** List Skill Files
+
+**Description:** Get file tree for a skill.
+
+#### Parameters
+
+| Name | In | Required | Type | Description |
+|------|----|----------|------|-------------|
+| `skill_id` | path | Yes | string |  |
+| `x-user-id` | header | No | anyOf |  |
+
+#### Responses
+
+| Status Code | Description |
+|-------------|-------------|
+| `200` | Successful Response |
+| `422` | Validation Error |
+
+#### Example Usage
+
+```bash
+curl -X 'GET' \
+  'http://localhost:8000/api/v1/skills/{skill_id}/files' \
+  -H 'accept: application/json' \
+  -H 'X-User-ID: <your_user_id>'
+```
+
+---
+
+## GET `/skills/{skill_id}/files/{path}`
+
+**Summary:** Read Skill File
+
+**Description:** Read a specific skill file.
+
+#### Parameters
+
+| Name | In | Required | Type | Description |
+|------|----|----------|------|-------------|
+| `skill_id` | path | Yes | string |  |
+| `path` | path | Yes | string |  |
+| `x-user-id` | header | No | anyOf |  |
+
+#### Responses
+
+| Status Code | Description |
+|-------------|-------------|
+| `200` | Successful Response |
+| `422` | Validation Error |
+
+#### Example Usage
+
+```bash
+curl -X 'GET' \
+  'http://localhost:8000/api/v1/skills/{skill_id}/files/{path}' \
+  -H 'accept: application/json' \
+  -H 'X-User-ID: <your_user_id>'
+```
+
+---
+
+## POST `/skills/{skill_id}/files/{path}`
+
+**Summary:** Create Or Update Skill File
+
+**Description:** Create or update a skill file.
+
+#### Parameters
+
+| Name | In | Required | Type | Description |
+|------|----|----------|------|-------------|
+| `skill_id` | path | Yes | string |  |
+| `path` | path | Yes | string |  |
+| `x-user-id` | header | No | anyOf |  |
+
+#### Request Body
+
+**Required:** Yes
+
+- **Media Type:** `application/json`
+- **Schema:** `SkillFileUpdate` (Define in Models)
+
+#### Responses
+
+| Status Code | Description |
+|-------------|-------------|
+| `200` | Successful Response |
+| `422` | Validation Error |
+
+#### Example Usage
+
+```bash
+curl -X 'POST' \
+  'http://localhost:8000/api/v1/skills/{skill_id}/files/{path}' \
+  -H 'accept: application/json' \
+  -H 'X-User-ID: <your_user_id>' \
+  -H 'Content-Type: application/json' \
+  -d '{}'
+```
+
+---
+
+## DELETE `/skills/{skill_id}/files/{path}`
+
+**Summary:** Delete Skill File
+
+**Description:** Delete a skill file literally from disk.
+
+#### Parameters
+
+| Name | In | Required | Type | Description |
+|------|----|----------|------|-------------|
+| `skill_id` | path | Yes | string |  |
+| `path` | path | Yes | string |  |
+| `x-user-id` | header | No | anyOf |  |
+
+#### Responses
+
+| Status Code | Description |
+|-------------|-------------|
+| `200` | Successful Response |
+| `422` | Validation Error |
+
+#### Example Usage
+
+```bash
+curl -X 'DELETE' \
+  'http://localhost:8000/api/v1/skills/{skill_id}/files/{path}' \
+  -H 'accept: application/json' \
+  -H 'X-User-ID: <your_user_id>'
+```
+
+---
+
diff --git a/ai_snippet b/ai_snippet
new file mode 160000
index 0000000..0d6a119
--- /dev/null
+++ b/ai_snippet
@@ -0,0 +1 @@
+Subproject commit 0d6a1191fa1ac69d9c8328056047d2472355298f
diff --git a/docs/features/skills_page.md b/docs/features/skills_page.md
new file mode 100644
index 0000000..fcf0e02
--- /dev/null
+++ b/docs/features/skills_page.md
@@ -0,0 +1,63 @@
+# Cortex Skills Feature Architecture
+
+## Overview
+The "Cortex Skills" feature serves as the central orchestration and management interface for AI capabilities within the Cortex Hub ecosystem. It provides a robust full-stack solution for viewing, creating, sharing, and managing modular AI skills (native, MCP, or gRPC protocols).
+
+## Frontend Architecture
+
+Located primarily in `/app/frontend/src/features/skills`, the frontend follows a clean Container/Presenter pattern to separate state management from UI rendering.
+
+### Components
+1. **`SkillsPage` (Container)**
+   - **Location:** `/app/frontend/src/features/skills/pages/SkillsPage.js`
+   - Manages state, data fetching (CRUD operations using `apiService`), and filtering logic.
+   - Holds complex states such as advanced "Engineering Mode" toggles, modal visibility, and contextual payload editing.
+
+2. **`SkillsPageContent` (Presenter)**
+   - **Location:** `/app/frontend/src/features/skills/components/SkillsPageContent.js`
+   - Renders the UI and consumes state via a shared `context` property.
+   - Designed with modern UI paradigms: dynamic grids, blurring (`backdrop-blur`), visual cues, micro-animations, and a responsive sidebar.
+
+### Frontend Features
+- **Sidebar & Filtering System**: Four distinct visual filters:
+  - *All Libraries*: Every skill available to the user.
+  - *System Core*: Built-in immutable skills.
+  - *My Creations*: Skills created and owned by the logged-in user.
+  - *Shared Works*: Skills inherited via group policy.
+- **Universal Search & System Toggling**: Fast text-based searching (checking names and descriptions) paired with a toggle to hide system skills to reduce visual noise.
+- **Skill Grid**: Visually distinct skill cards utilizing `extra_metadata.emoji` for quick identification. Displays disabled skills with an `opacity-60 grayscale` filter.
+- **Docs Viewer Modal**: Integrated `ReactMarkdown` rendering for `preview_markdown`, allowing users to see public instructions vs the raw "Intelligence Blueprint".
+- **Engineering Mode (Editor Modal)**: Contains both basic fields (Name, Emoji, Manifesto, Protocol Type) and advanced configuration states (Intelligence Protocol System Prompt, Network Config JSON validator, Markdown definitions).
+
+## Backend Architecture
+
+The backend REST API is built in FastAPI under `/app/ai-hub/app/api/routes/skills.py`. It is responsible for advanced access control, system-level safety, and complex querying.
+
+### Endpoints
+- `GET /skills/`: Lists skills, enforcing multi-level Access Control Logic (ACL).
+- `POST /skills/`: Creates a given skill configuration.
+- `PUT /skills/{skill_id}`: Overwrites skill configurations.
+- `DELETE /skills/{skill_id}`: Purges a skill from the ecosystem.
+
+### Access Control & Policy Logic
+1. **System Protection**: 
+   - `is_system` skills are **immutable**. They cannot be modified or deleted via the API, not even by administrators. This protects the core platform loops.
+   - Only admins can create new `is_system` skills.
+2. **Read/Visibility Rules**:
+   - **Administrators**: Complete visibility of all skills, regardless of `is_enabled` status or ownership.
+   - **Normal Users**: View system skills (if enabled), their own skills (where `owner_id` == `user.id` and enabled), and **Group Skills**. Group skills are dynamically matched by checking `current_user.group.policy.get("skills", [])`.
+3. **Filtering**: 
+   - The API supports a `feature` query parameter (e.g., `?feature=swarm_control` or `?feature=voice`), filtering the query arrays to only return relevant capabilities for specific frontend sub-systems.
+4. **Validations**:
+   - Automatic uniqueness checks for the `name` field on creation and modification.
+   - Strict owner-only (or admin) checks injected into PUT and DELETE policies to prevent arbitrary modification.
+
+## Data Model Structure (Key Fields)
+- `name` (String): Unique string identifier (e.g. `browser_eval`).
+- `skill_type` (String): Network protocol format - Native (`local`), MCP (`mcp`), or remote (`remote_grpc`).
+- `config` (JSON): Configuration network JSON payload.
+- `system_prompt` (String): Internal LLM instructions invisible to end-users unless explicitly provided.
+- `features` (Array): Target application bindings mapping where the skill should be active (e.g., `['swarm_control', 'voice_chat', 'workflow']`).
+- `is_system` & `is_enabled` (Boolean): Core booleans managing lifecycle state and system protection.
+- `extra_metadata` (JSON): Contains UI metadata and arbitrary frontend parameters (e.g., UI `emoji`).
+- `preview_markdown` (String): The operational documentation presented to the user.
diff --git a/docs/refactors/skill_filesystem_refactor.md b/docs/refactors/skill_filesystem_refactor.md
new file mode 100644
index 0000000..f49238d
--- /dev/null
+++ b/docs/refactors/skill_filesystem_refactor.md
@@ -0,0 +1,52 @@
+# Skill File-System Refactor Implementation Plan
+
+## Overview
+This document outlines the transition fully away from database-driven skill storage towards a pure File-System-Based Architecture. Skills will become directories on the server grouped by features (e.g., `swarm_control`, `voice_chat`), simplifying the user interface and maximizing flexibility (enabling git versioning, native file inclusion, etc.).
+
+## Phase 1: Backend Architecture & Tool Loader Reform
+### 1.1 Data Structure Updates
+- Define a base directory configuration `settings.SKILLS_DIR` (e.g., `/app/data/skills`).
+- Deprecate existing SQLAlchemy models for `Skill` and `SkillFile` (do not delete db tables yet for backup).
+
+### 1.2 Hot-Reload Engine & File Watcher (`app.core.skills.loader`)
+- Create a `FileSystemSkillLoader` script.
+- The loader will `os.walk()` through `settings.SKILLS_DIR` on boot, or use a background File System Watcher (e.g., `watchdog`) to dynamically update capabilities.
+    - Level 1 directories define the "Feature" (e.g., `swarm_control`, `voice_chat`).
+    - Level 2 directories define the "Skill Unique ID" (e.g., `get_weather`).
+- Reads `SKILL.md` from these folders to mount Markdown schemas and execute scripts.
+
+### 1.3 Invisible RBAC Metadata (`.metadata.json`)
+- If a skill folder is newly created (either manually on the server or via API) or if pre-existing files are detected, the loader will check for a hidden `.metadata.json` file.
+- **Server Boot Initialization**: When the server boots and recursively scans the directory structure, it will auto-generate `.metadata.json` for any existing folder that lacks one, assigning ownership defaults (e.g., admin).
+- **Backend API Creation**: If the user creates the skill from the frontend UI, the backend implicitly writes a `.metadata.json` assigning `owner_id` to that user.
+- **Manual Server Manipulation**: If an administrator copies a folder directly to the server via terminal, the File Watcher detects the missing `.metadata.json` and auto-generates it, defaulting the `owner_id` to the cluster admin.
+- The frontend UI will explicitly hide `.metadata.json` from the Visual Explorer so developers aren't bothered by system files. Permission modifications in the future will interact exclusively with this file.
+
+### 1.4 Update `tool.py` 
+- Modify `_execute_system_skill` and `get_tools` inside `app/core/services/tool.py` to route through the new `FileSystemSkillLoader` cache instead of invoking the database sessions. The `.metadata.json` overrides will dictate authorization blocks.
+
+## Phase 2: Refactoring the REST API (`app.api.routes.skills`)
+### 2.1 Decouple from SQLAlchemy
+- Rewrite the `GET /api/v1/skills/` endpoint to return JSON payloads mapping the physical directories (e.g., reading directories, returning the tree object).
+- Replace `POST`, `PUT`, `DELETE` operations with standard Python `os` and `shutil` commands:
+    - Creating a skill creates a folder.
+    - Adding a file creates a physical file inside that folder.
+    - Deleting a skill calls `shutil.rmtree()`.
+- Expose an endpoint to recursively read the tree structure of a skill (`/api/v1/skills/{feature}/{skill_id}/tree`).
+
+## Phase 3: Frontend Simplification Experience (`ai_unified_frontend`)
+### 3.1 Strip Declarative Database Forms
+- Eliminate modal logic dealing with `name`, `description`, `skill_type`, and `is_system` checkboxes from `SkillsPage.js`.
+- Provide a pure UI File Explorer that does not use forms to "generate" a skill. Instead, users simply right-click to "New Folder", typing the exact directory name they want (e.g., `get_weather`).
+- There is no backend conversion or "slugifying" of names. If a user types illegal characters for a folder name, the underlying OS rejection is simply passed back to the UI. The human-readable title and emojis will be parsed directly from the `SKILL.md` content (e.g., `### Skill Name: Get Weather 🌤️`).
+
+### 3.2 Direct VSCode-Like IDE Integration
+- Turn the `SkillsPage` layout into a two-panel IDE layout:
+  - **Left Sidebar**: File Explorer detailing the tree (`Feature > Folder Name > Files`).
+  - **Right Panel**: A large `Monaco Editor` or `CodeMirror` instance loading the physical file content.
+- Support creation of arbitrary code assets (Python, textual configs) alongside the `SKILL.md` via UI "Right Click -> New File".
+
+## Considerations
+1. **Migration Script**: Before deleting DB dependencies, we optionally need a Python script to sweep existing skills out of PostgreSQL and physically write them into `/app/data/skills/`.
+2. **Access Security**: If multi-tenancy is still important, `settings.SKILLS_DIR` could be parameterized per user (`/app/data/skills/{user_id}/...`) or we accept skills as global components for the Hub.
+3. **Execution Sandbox**: Existing nodes and bash execution sandboxes will remain perfectly intact. The only change is how the definitions arrive at the orchestrator.
diff --git a/docs/refactors/skill_folder_framework.md b/docs/refactors/skill_folder_framework.md
new file mode 100644
index 0000000..d067a67
--- /dev/null
+++ b/docs/refactors/skill_folder_framework.md
@@ -0,0 +1,62 @@
+# Skill Framework Refactoring Proposal (Folder-based Architecture)
+
+## 1. Problem Statement: The Monolithic String Anti-Pattern
+Currently, the Cortex skills system stores AI capabilities as single database rows (e.g., `system_prompt`, `preview_markdown`, `config`). The UI consists of large text areas where users paste monolithic prompts containing all custom scripts and reference data. 
+
+**Shortcomings:**
+- **Context Window Bloat:** Putting 1,000+ line scripts directly into `system_prompt` exhausts the LLM’s context window limit and degrades reasoning capabilities.
+- **Static Functionality:** Current skills lack the ability to encapsulate executable code securely without cluttering the prompt.
+- **Divergence from State-of-the-Art:** Modern AI orchestration frameworks define tools/skills as discrete file structures or sandboxed resources, not string values in a relational database.
+
+### Industry Validation
+Our research confirms that the industry standard has moved away from monolithic prompting:
+1. **OpenHands (formerly OpenDevin)**: Operates using a Runtime Sandbox (Docker container). It grants agents `execute` and `execute_ipython_shell` actions. Global skills and repository guidelines are stored as markdown files (like `AGENTS.md`) and python scripts within the workspace, which are read/executed *only when triggered*, rather than injected into the system prompt upfront.
+2. **OpenAI Assistants API**: Utilizes a Sandboxed Code Interpreter. Instead of pasting data and scripts into the system instructions, developers upload files (Python scripts, CSVs) which are mounted to `/mnt/data/` within the sandbox. The LLM writes small wrapper scripts to execute or read these files dynamically.
+3. **Anthropic Model Context Protocol (MCP)**: Separates "Resources" (lazily loaded file URIs) from "Tools" (executables). The agent decides when to read a resource URI rather than having the server push the entire file context into the conversation automatically.
+
+## 2. The Solution: "Skills as Folders" (Lazy Loading Architecture)
+
+The skill definition paradigm must shift from **database forms** to **file trees**. A skill should represent a containerized environment of rules, references, and executable assets.
+
+### Proposed Structure of a Skill:
+A given skill (e.g., `mesh-file-explorer`) would be managed just like a Git repository folder containing:
+
+```text
+/skills/mesh-file-explorer/
+├── SKILL.md                 # Core instructions & meta-rationale (What the LLM reads first)
+├── scripts/                 # Executable runtimes to lazy load (e.g., node.js CLI tools, Python scrapers)
+│   ├── run_explorer.py     
+│   └── helper.sh
+├── examples/                # Example usages or inputs (few-shot prompting material)
+│   └── successful_logs.txt
+└── artifacts/               # Binary plugins or reference files
+```
+
+### The "Lazy Loading" Advantage
+The primary benefit of this folder structure is **Lazy Context Injection**.
+1. **The LLM starts only with the metadata:** The agent is given a brief summary of the skill via `SKILL.md` or a standard system tool describing the folder's purpose.
+2. **On-Demand Context:** The agent has a subset tool like `view_skill_artifact` or `execute_plugin_script`. If the LLM determines it needs to run a web scraper, it calls `scripts/run_scraper.py`.
+3. **Reduction in Tokens:** The 1,000+ line Python scraper is **never** loaded into the conversation prompt. Only its execution results or help output are printed to the agent context.
+
+## 3. Implementation Roadmap
+
+### Phase 1: Storage and Backend Overhaul
+- **File System Virtualization:** Transition from storing huge SQL Strings (`system_prompt`) to a virtualized file system mapping. Skills can either be saved to a network drive, synced through the agent-node mesh, or abstracted behind an Object Storage system (S3/minio) or a Virtual File System DB design.
+- **REST APIs (Virtual File Explorer):** 
+  Replace the flat `/skills` CRUD with a hierarchy:
+  - `GET /skills/:id/tree` (Fetch folder hierarchy)
+  - `GET /skills/:id/files/:path` (Read asset contents)
+  - `POST /skills/:id/files/:path` (Upload/Create code scripts inside a skill)
+
+### Phase 2: Frontend "Skill Studio" (IDE-like UI)
+The current UI requires replacing the simple forms ("Engineering Mode") with a "Skill Editor Workspace" modeled after basic web-IDEs (like VSCode web or Git repository interfaces).
+- **Left Panel:** File tree showing `SKILL.md`, `scripts/`, `artifacts/`.
+- **Center Canvas:** Code editor (e.g. Monaco / CodeMirror) to edit the currently selected file.
+- **Asset Uploads:** Support for drag-and-dropping Python code, shell scripts, or CSV reference files straight into the skill.
+
+### Phase 3: Agentic API (Tool Adaptation)
+- **New Standard Tools for the Agent:** Inject a system tool to let the agent explore available folders and execute skill artifacts.
+- When an agent equips a "Skill", the system mounts that specific skill's `/scripts` directory directly into the Agent's sandbox `PATH` environment variable, making tool invocation native and seamless in bash.
+
+## 4. Summary of Value
+Through this refactoring, skills graduate from **"Large Prompts"** to **"Software Packages"**. This creates an ecosystem where developers can drop in a complex Docker network or Python repository into a skill folder, and the Cortex LLM can dynamically research and execute those resources as needed without breaking context sizes.
diff --git a/docs/refactors/skill_implementation_plan.md b/docs/refactors/skill_implementation_plan.md
new file mode 100644
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+++ b/docs/refactors/skill_implementation_plan.md
@@ -0,0 +1,94 @@
+# Skill Framework Migration: Step-by-Step AI Implementation Plan
+
+This document serves as a self-contained, step-by-step guide for an AI agent to execute the migration from the flat, database-backed skill system to the new "Skills as Folders" (Lazy-Loading) architecture.
+
+**Prerequisites to check before starting:**
+- Backend uses FastAPI (`/app/ai-hub/app/api/`).
+- Frontend uses React (`/app/frontend/src/features/skills/`).
+- Database uses SQLAlchemy (`/app/db/models.py`).
+
+---
+
+## Phase 1: Database & Model Virtualization (Backend)
+**Objective:** Evolve the `Skill` model to support a Virtual File System (VFS) instead of monolithic text fields.
+
+- [x] **Step 1.1: Create the `SkillFile` SQLAlchemy Model**
+  - **Location:** `/app/ai-hub/app/db/models.py`
+  - **Action:** Define a new `SkillFile` model with:
+    - `id` (Integer, Primary Key)
+    - `skill_id` (Integer, Foreign Key to `skills.id`)
+    - `file_path` (String, e.g., `SKILL.md`, `scripts/run.py`, `artifacts/data.json`)
+    - `content` (Text or LargeBinary, to hold file data)
+    - `created_at` / `updated_at` (DateTime)
+  - **Action:** Add a `files = relationship("SkillFile", back_populates="skill", cascade="all, delete-orphan")` to the main `Skill` model.
+
+- [x] **Step 1.2: Deprecate Legacy Fields in the `Skill` Model**
+  - **Location:** `/app/ai-hub/app/db/models.py`
+  - **Action:** Mark `system_prompt`, `preview_markdown`, and `config` as nullable/deprecated. The core logic should now expect a `SKILL.md` file in the `SkillFile` table to replace `system_prompt` and `preview_markdown`.
+
+- [x] **Step 1.3: Generate & Run Alembic Migration**
+  - **Action:** Run the command to generate an alembic migration script for the new `SkillFile` table and apply it to the database.
+
+---
+
+## Phase 2: REST API Overhaul (Backend)
+**Objective:** Expose endpoints for standard IDE operations (CRUD for files/folders).
+
+- [x] **Step 2.1: Implement File Tree API**
+  - **Location:** `/app/ai-hub/app/api/routes/skills.py`
+  - **Action:** Create `GET /skills/{skill_id}/files`.
+  - **Logic:** Return a hierarchical JSON representation of the files associated with the skill (e.g., simulating folders by parsing the `file_path` strings).
+
+- [x] **Step 2.2: Implement File Content CRUD Operations**
+  - **Location:** `/app/ai-hub/app/api/routes/skills.py`
+  - **Action:** Create `GET /skills/{skill_id}/files/{path:path}` to read a specific file's text/binary content.
+  - **Action:** Create `POST /skills/{skill_id}/files/{path:path}` to create or update file contents.
+  - **Action:** Create `DELETE /skills/{skill_id}/files/{path:path}` to remove a file.
+
+- [x] **Step 2.3: Modify Skill Creation Logic**
+  - **Location:** `/app/ai-hub/app/api/routes/skills.py` (POST `/skills/`)
+  - **Action:** Upon creating a new skill, automatically seed the `SkillFile` database with a default `SKILL.md` file containing basic boilerplate instructions.
+
+---
+
+## Phase 3: "Lazy Loading" Agent Logic Integration (Backend/Worker)
+**Objective:** Teach the AI agent how to interact with this new folder structure instead of relying on the giant `system_prompt`.
+
+- [x] **Step 3.1: Create the `read_skill_artifact` Tool**
+  - **Location:** Core agent tooling directory (e.g., `/app/ai-hub/app/core/agent/tools.py` or similar).
+  - **Action:** Program a standard tool allowing the LLM to provide a `skill_name` and `file_path` to read content dynamically during a session.
+
+- [x] **Step 3.2: Update Agent Initialization Context**
+  - **Location:** Node/Agent execution wrapper (`sessions.py` or agent orchestrator).
+  - **Action:** When loading a skill for an agent, inject *only* the contents of `SKILL.md` into the initial system prompt. Provide the agent with the `read_skill_artifact` tool to discover and read anything in the `/scripts/` or `/artifacts/` folders when necessary.
+
+---
+
+## Phase 4: The "Skill Studio" IDE Upgrade (Frontend)
+**Objective:** Replace the basic textarea forms with a true workspace IDE UI.
+
+- [ ] **Step 4.1: Abstract File APIs in Frontend Service**
+  - **Location:** `/app/frontend/src/services/apiService.js`
+  - **Action:** Add helper functions: `getSkillFiles(id)`, `getSkillFileContent(id, path)`, `saveSkillFile(id, path, content)`, `deleteSkillFile(id, path)`.
+
+- [ ] **Step 4.2: Build the File Tree Sidebar Component**
+  - **Location:** `/app/frontend/src/features/skills/components/SkillFileTree.js` (New Component)
+  - **Action:** Implement a clickable folder/file tree UI. Selecting a file triggers a state update for the active open code editor.
+
+- [ ] **Step 4.3: Implement the Code Editor Component**
+  - **Location:** `/app/frontend/src/features/skills/components/SkillEditor.js` (New Component)
+  - **Action:** Drop in a code editor (like Monaco Editor, or a high-quality textarea with syntax highlighting) to edit the active file fetched in Step 4.2.
+  - **Action:** Add "Save" shortcuts (Ctrl+S) hooked to the `saveSkillFile` API.
+
+- [ ] **Step 4.4: Refactor `SkillsPageContent.js`**
+  - **Location:** `/app/frontend/src/features/skills/components/SkillsPageContent.js`
+  - **Action:** Remove the legacy "Engineering Mode" and monolithic textareas (`formData.system_prompt`, `formData.preview_markdown`, `formData.config`).
+  - **Action:** Replace the modal body with the newly created Workspace Layout: Side-by-side split view of `SkillFileTree` (Left) and `SkillEditor` (Right).
+
+---
+
+## Final Validation Checklist
+1. Create a new skill; verify `SKILL.md` is automatically created.
+2. Add a new file `scripts/test.py` via the Frontend UI.
+3. Observe the AI Agent reading `SKILL.md` by default, but executing a tool to read `scripts/test.py` only when requested.
+4. Verify token counts drop significantly compared to the legacy monolithic system prompt.
diff --git a/docs/refactors/skill_symlink_plan.md b/docs/refactors/skill_symlink_plan.md
new file mode 100644
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+++ b/docs/refactors/skill_symlink_plan.md
@@ -0,0 +1,52 @@
+# Phase 4: Native Skill Symlinking
+
+## Observation
+Currently, the LLM reads the contents of bash scripts from `SKILL.md` entirely into context, and executes them remotely using generic commands. This breaks down if a skill involves complex file directories (like 1000 lines of python configuration, custom shell scripts, etc.).
+Since Cortex utilizes a powerful bi-directional gRPC file synchronizer that maps a specific server-side Session directory (`/tmp/cortex-sync/{session_id}/`) directly down to the Client Node Workers, we can dynamically expose tools directly to the Node's active filesystem by **symlinking** the Skill's folder.
+
+## Objective
+When a session is active, dynamically mount any active File-System Skills (e.g. `weather_api`) straight into the session workspace directory (`.skills/`). Because of the background `mesh_file_explorer` file syncing loop, any symlinked `.skills` folder on the Server will automatically be evaluated and populated down to the running Node Worker.
+This allows the AI to execute `bash .skills/weather_api/run.sh` natively without loading any code into its context!
+
+## Step-by-Step Implementation Plan
+
+### 1. Identify Workspace Initialization Hook
+The AI Server initializes the file sync workspace folder whenever a session starts or connects:
+- Files involved: `app/ai-hub/app/core/services/session.py` or wherever session folders are mapped (`/tmp/cortex-sync/{session_id}`).
+- **Goal:** During startup of the worker container node, or when the Agent loops starts, we must run a Symlink sync process.
+
+### 2. Map the Linked Folders
+- The central `DATA_DIR/skills/` directory holds all physical skills.
+- The Session Workspace directory is located at `/tmp/cortex-sync/{session_id}/`.
+- Inside the workspace, create a hidden orchestrator directory `.skills`.
+- Loop through all active tools loaded by `ToolService.get_available_tools(...)` for the given User/Session.
+- For every active tool found on the File System, create a relative symlink from `DATA_DIR/skills/{feature}/{skill_id}` to `/tmp/cortex-sync/{session_id}/.skills/{skill_id}`.
+
+### 3. Automatically Ignore `.skills` in Git/History tracking (Optional)
+- Ensure the bi-directional sync does NOT push changes from `.skills/` BACK up to the original physical folder if the AI ruins them. This is critical for security.
+- Wait, symlinks in Python (`os.symlink`) point to the read-only or original folder. If the Node modifies it, it modifies the original tool!
+- **Alternative:** Hard copy the scripts, OR use actual read-only Docker Volume mounts to the nodes (wait, the nodes are remote distributed workers!). If they are remote, the File Sync daemon using Python `os.walk` will follow symlinks and sync the physical files down to the remote Node.
+- The remote Node will treat them as raw downloaded files! It modifies *its* localized copies, not the Server's source!
+- However, if the Node tries to upload the changed files back, the Server's `file_sync` daemon will write the changes back to the symlink, modifying the global tool!
+- **Mitigation:** We must add `.skills/` into the `ignored_paths` constant within `app/core/grpc/shared_core/ignore.py` ON THE UPSTREAM route (Node -> Server) so that changes aren't persisted backward.
+
+### 4. Inject `.skills/` Execution Logic into the System Prompt
+- For each injected skill, the Tool System currently parses `Summary: ...` or the `| Parameters |`.
+- Modify `tool.py` so that instead of saying "Call read_skill_artifact to see instructions", the system prompt explicitly tells the AI:
+  ```text
+  This skill is natively mapped to your workspace. 
+  You can execute it directly on the node via: `bash .skills/{skill_id}/{executable}`.
+  ```
+
+### 5. AI Self-Improvement/Evolution Capabilities
+Since the `.skills/` directory is bi-directionally synced between the true File System and the Node Workspace:
+1. The AI can natively use `mesh_file_explorer` to `read` any script located inside `.skills/`.
+2. The AI can use terminal sed, python ast or file tools to modify/debug its own skill source code automatically if it fails.
+3. Because the directory is physically synced, the server overwrites the permanent `/app/data/skills/` folder seamlessly. The AI becomes capable of hot-fixing its own execution scripts permanently for all future sessions!
+
+### 6. Finalizing Skill Definitions
+- Users can create a `run.sh` or `main.py` directly alongside `SKILL.md` in the VSCode IDE UI.
+- The AI LLM gets instructions to just call that file directly via `mesh_terminal_control`.
+
+## Summary
+By symlinking `DATA_DIR/skills/` -> `/tmp/cortex-sync/{session_id}/.skills/`, the gRPC network will sync the scripts as raw text files across the internet directly into the Client Node's OS container. The Agent gets zero context bloat, executing vast tools effortlessly, and gains the absolute power to spontaneously view, trace, and self-improve its own capabilities across sessions!
diff --git a/frontend/src/features/skills/components/SkillEditor.js b/frontend/src/features/skills/components/SkillEditor.js
new file mode 100644
index 0000000..4597819
--- /dev/null
+++ b/frontend/src/features/skills/components/SkillEditor.js
@@ -0,0 +1,70 @@
+import React, { useState, useEffect } from 'react';
+
+export default function SkillEditor({ activeFile, content, onChange, onSave, isSaving }) {
+    const [localContent, setLocalContent] = useState(content || '');
+
+    useEffect(() => {
+        setLocalContent(content || '');
+    }, [content, activeFile]);
+
+    const handleKeyDown = (e) => {
+        if ((e.ctrlKey || e.metaKey) && e.key === 's') {
+            e.preventDefault();
+            onSave(localContent);
+            return;
+        }
+        
+        // Handle tab indentation
+        if (e.key === 'Tab' && !e.shiftKey) {
+            e.preventDefault();
+            const start = e.target.selectionStart;
+            const end = e.target.selectionEnd;
+            const newContent = localContent.substring(0, start) + "    " + localContent.substring(end);
+            setLocalContent(newContent);
+            onChange(newContent);
+            // Move cursor
+            setTimeout(() => {
+                e.target.selectionStart = e.target.selectionEnd = start + 4;
+            }, 0);
+        }
+    };
+
+    const handleChange = (e) => {
+        setLocalContent(e.target.value);
+        onChange(e.target.value);
+    };
+
+    if (!activeFile) {
+        return (
+            <div className="flex-grow flex items-center justify-center bg-gray-50 dark:bg-gray-900 border-l border-gray-200 dark:border-gray-700 h-full">
+                <p className="text-sm text-gray-400 italic font-medium">Select a file from the tree to edit</p>
+            </div>
+        );
+    }
+
+    return (
+        <div className="flex-grow flex flex-col h-full bg-white dark:bg-[#0d1117]">
+            <div className="flex items-center justify-between px-6 py-3 border-b border-gray-200 dark:border-gray-800 bg-gray-50/50 dark:bg-gray-900/50">
+                <div className="flex items-center gap-2">
+                    <span className="text-xs font-mono font-bold text-gray-700 dark:text-gray-300">{activeFile}</span>
+                    {localContent !== content && <span className="w-2 h-2 rounded-full bg-yellow-400 animate-pulse"></span>}
+                </div>
+                <button 
+                    onClick={() => onSave(localContent)}
+                    disabled={isSaving || localContent === content}
+                    className={`px-4 py-1.5 text-[10px] font-black uppercase tracking-widest rounded-md transition-all ${localContent !== content ? 'bg-indigo-600 text-white hover:bg-indigo-700 shadow-md active:scale-95' : 'bg-gray-200 dark:bg-gray-800 text-gray-400 cursor-not-allowed'}`}
+                >
+                    {isSaving ? 'Saving...' : 'Save (Ctrl+S)'}
+                </button>
+            </div>
+            <textarea
+                value={localContent}
+                onChange={handleChange}
+                onKeyDown={handleKeyDown}
+                className="flex-grow w-full p-6 text-[13px] font-mono bg-transparent text-gray-800 dark:text-gray-300 focus:outline-none resize-none custom-scrollbar leading-relaxed"
+                spellCheck={false}
+                placeholder="Type your code or markdown here..."
+            />
+        </div>
+    );
+}
diff --git a/frontend/src/features/skills/components/SkillFileTree.js b/frontend/src/features/skills/components/SkillFileTree.js
new file mode 100644
index 0000000..fd9c545
--- /dev/null
+++ b/frontend/src/features/skills/components/SkillFileTree.js
@@ -0,0 +1,74 @@
+import React, { useState } from 'react';
+
+export default function SkillFileTree({ files, activeFile, onSelectFile, onAddFile, onDeleteFile, Icon }) {
+    const [newFileName, setNewFileName] = useState('');
+    const [isAdding, setIsAdding] = useState(false);
+
+    const handleAdd = () => {
+        if (newFileName.trim()) {
+            onAddFile(newFileName.trim());
+            setNewFileName('');
+            setIsAdding(false);
+        }
+    };
+
+    return (
+        <div className="w-64 bg-gray-50 dark:bg-gray-900/50 border-r border-gray-200 dark:border-gray-700 flex flex-col h-full overflow-hidden">
+            <div className="p-4 border-b border-gray-200 dark:border-gray-700 flex justify-between items-center bg-gray-100/50 dark:bg-gray-800/50">
+                <span className="text-[10px] uppercase font-black tracking-widest text-gray-400">Environment Files</span>
+                <button onClick={() => setIsAdding(!isAdding)} className="text-gray-400 hover:text-indigo-500 transition-colors" title="Add File">
+                    <Icon path="M12 4v16m8-8H4" className="w-4 h-4" />
+                </button>
+            </div>
+            
+            <div className="flex-grow overflow-y-auto custom-scrollbar p-2">
+                {isAdding && (
+                    <div className="mb-2 p-2 relative">
+                        <input 
+                            autoFocus
+                            type="text" 
+                            className="w-full bg-white dark:bg-gray-800 border border-indigo-300 dark:border-indigo-700 rounded-lg px-2 py-1 text-xs outline-none focus:border-indigo-500 text-gray-800 dark:text-gray-200"
+                            placeholder="scripts/new.py"
+                            value={newFileName}
+                            onChange={(e) => setNewFileName(e.target.value)}
+                            onKeyDown={(e) => {
+                                if (e.key === 'Enter') handleAdd();
+                                if (e.key === 'Escape') setIsAdding(false);
+                            }}
+                            onBlur={() => setIsAdding(false)}
+                        />
+                    </div>
+                )}
+                
+                {files.map((file) => (
+                    <div 
+                        key={file.path} 
+                        className={`group flex items-center justify-between px-3 py-2 rounded-lg cursor-pointer transition-colors mb-1 ${activeFile === file.path ? 'bg-indigo-100 dark:bg-indigo-900/30 text-indigo-700 dark:text-indigo-300 font-bold' : 'text-gray-600 dark:text-gray-400 hover:bg-gray-200 dark:hover:bg-gray-800'}`}
+                        onClick={() => onSelectFile(file.path)}
+                    >
+                        <div className="flex items-center gap-2 truncate">
+                            <Icon path="M7 21h10a2 2 0 002-2V9.414a1 1 0 00-.293-.707l-5.414-5.414A1 1 0 0012.586 3H7a2 2 0 00-2 2v14a2 2 0 002 2z" className="w-4 h-4 flex-none opacity-50" />
+                            <span className="text-xs truncate">{file.path}</span>
+                        </div>
+                        {file.path !== 'SKILL.md' && onDeleteFile && (
+                            <button 
+                                onClick={(e) => { e.stopPropagation(); onDeleteFile(file.path); }}
+                                className="opacity-0 group-hover:opacity-100 text-gray-400 hover:text-red-500 transition-opacity"
+                                title="Delete File"
+                            >
+                                <Icon path="M19 7l-.867 12.142A2 2 0 0116.138 21H7.862a2 2 0 01-1.995-1.858L5 7m5 4v6m4-6v6m1-10V4a1 1 0 00-1-1h-4a1 1 0 00-1 1v3M4 7h16" className="w-3 h-3" />
+                            </button>
+                        )}
+                    </div>
+                ))}
+                
+                {files.length === 0 && !isAdding && (
+                    <div className="py-6 text-center text-gray-400 dark:text-gray-500">
+                        <Icon path="M3 7v10a2 2 0 002 2h14a2 2 0 002-2V9a2 2 0 00-2-2h-6l-2-2H5a2 2 0 00-2 2z" className="w-6 h-6 mx-auto mb-2 opacity-30" />
+                        <p className="text-[10px] uppercase font-bold tracking-widest">No Files Found</p>
+                    </div>
+                )}
+            </div>
+        </div>
+    );
+}
diff --git a/frontend/src/features/skills/components/SkillsPageContent.js b/frontend/src/features/skills/components/SkillsPageContent.js
index 98a07de..f0955e7 100644
--- a/frontend/src/features/skills/components/SkillsPageContent.js
+++ b/frontend/src/features/skills/components/SkillsPageContent.js
@@ -1,5 +1,6 @@
 import React from 'react';
-import ReactMarkdown from 'react-markdown';
+import SkillFileTree from './SkillFileTree';
+import SkillEditor from './SkillEditor';
 
 export default function SkillsPageContent({ context }) {
     const {
@@ -11,31 +12,26 @@
         setSearchQuery,
         activeFilter,
         setActiveFilter,
-        showSystemSkills,
-        setShowSystemSkills,
-        viewingDoc,
-        setViewingDoc,
-        showRawDoc,
-        setShowRawDoc,
         isModalOpen,
         openModal,
         closeModal,
-        handleClone,
         handleSave,
-        handleDelete,
         isAdmin,
         filteredSkills,
         stats,
         editingSkill,
         formData,
         setFormData,
-        showAdvanced,
-        setShowAdvanced,
-        errorModalMessage,
-        setErrorModalMessage,
-        confirmDeleteId,
         setConfirmDeleteId,
-        confirmDelete
+        skillFiles,
+        activeFile,
+        activeFileContent,
+        setActiveFileContent,
+        isSavingFile,
+        handleSelectFile,
+        handleAddFile,
+        handleSaveActiveFile,
+        handleDeleteFile
     } = context;
 
     const SidebarItem = ({ id, label, icon, count, active }) => (
@@ -56,7 +52,7 @@
 
     return (
         <div className="flex h-full bg-gray-50 dark:bg-gray-900 overflow-hidden">
-            {/* --- Sidebar --- */}
+            {/* --- Far Left Sidebar --- */}
             <div className="w-64 flex-none bg-white dark:bg-gray-800 border-r border-gray-200 dark:border-gray-700 flex flex-col z-20">
                 <div className="p-8 pb-4">
                     <h1 className="text-2xl font-black bg-clip-text text-transparent bg-gradient-to-br from-indigo-500 to-purple-600 leading-tight py-1">
@@ -67,9 +63,7 @@
 
                 <div className="px-4 space-y-2 overflow-y-auto flex-grow">
                     <SidebarItem id="all" label="All Libraries" icon="M19 11H5m14 0a2 2 0 012 2v6a2 2 0 01-2 2H5a2 2 0 01-2-2v-6a2 2 0 012-2m14 0V9a2 2 0 00-2-2M5 11V9a2 2 0 012-2m0 0V5a2 2 0 012-2h6a2 2 0 012 2v2M7 7h10" count={stats.total} active={activeFilter === 'all'} />
-                    <SidebarItem id="system" label="System Core" icon="M9 12l2 2 4-4m5.618-4.016A11.955 11.955 0 0112 2.944a11.955 11.955 0 01-8.618 3.04A12.02 12.02 0 003 9c0 5.591 3.824 10.29 9 11.622 5.176-1.332 9-6.03 9-11.622 0-1.042-.133-2.052-.382-3.016z" count={stats.system} active={activeFilter === 'system'} />
                     <SidebarItem id="mine" label="My Creations" icon="M16 7a4 4 0 11-8 0 4 4 0 018 0zM12 14a7 7 0 00-7 7h14a7 7 0 00-7-7z" count={stats.mine} active={activeFilter === 'mine'} />
-                    <SidebarItem id="group" label="Shared Works" icon="M17 20h5v-2a3 3 0 00-5.356-1.857M17 20H7m10 0v-2c0-.656-.126-1.283-.356-1.857M7 20H2v-2a3 3 0 015.356-1.857M7 20v-2c0-.656.126-1.283.356-1.857m0 0a5.002 5.002 0 019.288 0M15 7a3 3 0 11-6 0 3 3 0 016 0zm6 3a2 2 0 11-4 0 2 2 0 014 0z" count={stats.group} active={activeFilter === 'group'} />
                 </div>
 
                 <div className="p-6">
@@ -78,412 +72,188 @@
                         className="w-full bg-indigo-600 hover:bg-indigo-700 text-white rounded-[20px] py-4 font-black uppercase text-xs tracking-widest shadow-xl shadow-indigo-600/20 active:scale-95 transition-all flex items-center justify-center gap-2"
                     >
                         <Icon path="M12 4v16m8-8H4" className="w-5 h-5" />
-                        Create
+                        New Folder
                     </button>
                 </div>
             </div>
 
-            {/* --- Main Content --- */}
-            <div className="flex-grow flex flex-col min-w-0">
-                {/* --- Top Navbar --- */}
-                <div className="h-20 bg-white/80 dark:bg-gray-800/80 backdrop-blur-md border-b border-gray-200 dark:border-gray-700 flex items-center px-12 justify-between sticky top-0 z-10">
-                    <div className="flex-grow max-w-xl relative group">
-                        <Icon path="M21 21l-6-6m2-5a7 7 0 11-14 0 7 7 0 0114 0z" className="w-5 h-5 absolute left-4 top-1/2 -translate-y-1/2 text-gray-400 group-focus-within:text-indigo-500 transition-colors" />
-                        <input
-                            type="text"
-                            placeholder="Universal search..."
-                            value={searchQuery}
-                            onChange={(e) => setSearchQuery(e.target.value)}
-                            className="w-full bg-gray-100/50 dark:bg-gray-700/50 border-none rounded-2xl py-3 pl-12 pr-4 focus:ring-2 focus:ring-indigo-500 outline-none transition-all placeholder-gray-400 text-sm"
-                        />
+            {/* --- Main Content (IDE Layout) --- */}
+            <div className="flex-grow flex min-w-0 bg-white dark:bg-[#1e1e1e] overflow-hidden relative">
+                
+                {/* --- IDE Left Pane: Tool/Folder List --- */}
+                <div className="w-72 flex-none border-r border-gray-200 dark:border-[#2d2d2d] flex flex-col bg-gray-50/50 dark:bg-[#252526]">
+                    <div className="p-4 border-b border-gray-200 dark:border-[#2d2d2d]">
+                        <div className="relative">
+                            <Icon path="M21 21l-6-6m2-5a7 7 0 11-14 0 7 7 0 0114 0z" className="w-4 h-4 absolute left-3 top-1/2 -translate-y-1/2 text-gray-400" />
+                            <input
+                                type="text"
+                                placeholder="Search folders..."
+                                value={searchQuery}
+                                onChange={(e) => setSearchQuery(e.target.value)}
+                                className="w-full bg-white dark:bg-[#3c3c3c] border border-gray-200 dark:border-[#3c3c3c] rounded-lg pl-9 pr-4 py-2 text-xs focus:ring-1 focus:border-indigo-500 focus:ring-indigo-500 outline-none placeholder-gray-400 dark:text-gray-200"
+                            />
+                        </div>
                     </div>
-                    <div className="flex items-center ml-8 group">
-                        <label className="flex items-center gap-3 cursor-pointer">
-                            <span className="text-[10px] font-black uppercase text-gray-400 group-hover:text-indigo-500 transition-colors tracking-widest">System Skills</span>
-                            <div className={`w-10 h-6 rounded-full p-1 transition-all duration-300 ${showSystemSkills ? 'bg-indigo-600' : 'bg-gray-200 dark:bg-gray-700'}`}>
-                                <div className={`w-4 h-4 bg-white rounded-full transition-transform duration-300 ${showSystemSkills ? 'translate-x-4' : ''}`}></div>
+
+                    <div className="flex-grow overflow-y-auto custom-scrollbar p-2">
+                        {loading ? (
+                            <div className="flex justify-center p-8"><span className="w-6 h-6 border-2 border-indigo-500 border-t-transparent rounded-full animate-spin"></span></div>
+                        ) : error ? (
+                            <div className="text-center p-4 text-red-500 text-xs">{error}</div>
+                        ) : filteredSkills.length === 0 ? (
+                            <div className="text-center p-8 text-gray-400 text-xs">No folders found.</div>
+                        ) : (
+                            <div className="space-y-1">
+                                {filteredSkills.map(skill => {
+                                    const isSelected = editingSkill && editingSkill.id === skill.id;
+                                    return (
+                                        <div key={skill.id} className="flex flex-col">
+                                            <button 
+                                                onClick={() => {
+                                                    openModal(skill);
+                                                }}
+                                                className={`w-full text-left px-3 py-2 rounded-lg transition-colors flex items-center justify-between group ${isSelected ? 'bg-indigo-100 dark:bg-[#37373d] text-indigo-700 dark:text-gray-100 font-bold' : 'text-gray-700 dark:text-gray-400 hover:bg-gray-100 dark:hover:bg-[#2a2d2e]'}`}
+                                            >
+                                                <div className="flex items-center gap-2 truncate">
+                                                    <span className="text-sm flex-none">{skill.extra_metadata?.emoji || "📁"}</span>
+                                                    <span className="text-xs truncate">{skill.name}</span>
+                                                </div>
+                                                {isAdmin || skill.owner_id === user?.id ? (
+                                                    <span 
+                                                        onClick={(e) => { e.stopPropagation(); setConfirmDeleteId(skill.id); }}
+                                                        className="opacity-0 group-hover:opacity-100 text-gray-400 hover:text-red-500 transition-opacity flex-none"
+                                                    >
+                                                        <Icon path="M19 7l-.867 12.142A2 2 0 0116.138 21H7.862a2 2 0 01-1.995-1.858L5 7m5 4v6m4-6v6m1-10V4a1 1 0 00-1-1h-4a1 1 0 00-1 1v3M4 7h16" className="w-3.5 h-3.5" />
+                                                    </span>
+                                                ) : null}
+                                            </button>
+                                            
+                                            {/* Sub-Tree of Files if this folder is selected */}
+                                            {isSelected && (
+                                                <div className="ml-6 py-1 border-l border-gray-200 dark:border-[#3c3c3c] pl-2 mt-1">
+                                                    <SkillFileTree 
+                                                        files={skillFiles}
+                                                        activeFile={activeFile}
+                                                        onSelectFile={handleSelectFile}
+                                                        onAddFile={handleAddFile}
+                                                        onDeleteFile={handleDeleteFile}
+                                                        Icon={Icon}
+                                                    />
+                                                </div>
+                                            )}
+                                        </div>
+                                    );
+                                })}
                             </div>
-                            <input type="checkbox" className="hidden" checked={showSystemSkills} onChange={(e) => setShowSystemSkills(e.target.checked)} />
-                        </label>
+                        )}
                     </div>
                 </div>
 
-                {/* --- Skill Grid --- */}
-                <div className="flex-grow p-12 overflow-y-auto custom-scrollbar">
-                    {loading ? (
-                        <div className="flex flex-col items-center justify-center h-full">
-                            <div className="w-12 h-12 border-4 border-indigo-100 dark:border-indigo-900/30 border-t-indigo-500 rounded-full animate-spin"></div>
-                            <p className="mt-4 text-xs font-black uppercase tracking-[0.3em] text-gray-400">Syncing</p>
-                        </div>
-                    ) : error ? (
-                        <div className="max-w-md mx-auto mt-20 p-8 bg-white dark:bg-gray-800 rounded-[32px] border border-red-50 dark:border-red-900 shadow-xl text-center">
-                            <div className="w-16 h-16 bg-red-50 dark:bg-red-900/20 rounded-full flex items-center justify-center mx-auto mb-6">
-                                <Icon path="M12 9v2m0 4h.01m-6.938 4h13.856c1.54 0 2.502-1.667 1.732-3L13.732 4c-.77-1.333-2.694-1.333-3.464 0L3.34 16c-.77 1.333.192 3 1.732 3z" className="w-8 h-8 text-red-500" />
-                            </div>
-                            <p className="font-black uppercase tracking-tight text-gray-900 dark:text-white">Access Denied</p>
-                            <p className="text-sm text-gray-500 dark:text-gray-400 mt-2">{error}</p>
-                        </div>
-                    ) : (
-                        <div className="grid grid-cols-1 md:grid-cols-2 lg:grid-cols-3 xl:grid-cols-4 gap-8 pb-20">
-                            {filteredSkills.map((skill) => (
-                                <div
-                                    key={skill.id}
-                                    className={`group relative bg-white dark:bg-gray-800 rounded-[32px] border border-gray-200 dark:border-gray-700 p-7 transition-all duration-500 hover:shadow-[0_20px_60px_-15px_rgba(0,0,0,0.1)] hover:-translate-y-2 flex flex-col h-[320px] ${!skill.is_enabled ? 'opacity-60 grayscale' : ''}`}
-                                >
-                                    <div className="flex items-center gap-5 mb-6">
-                                        <div className="w-16 h-16 rounded-2xl bg-gray-50 dark:bg-gray-900/50 flex-none flex items-center justify-center text-3xl group-hover:scale-110 group-hover:bg-indigo-50 transition-all duration-500">
-                                            {skill.extra_metadata?.emoji || "⚙️"}
-                                        </div>
-                                        <div className="min-w-0 flex-grow py-1">
-                                            <h3 className="text-lg font-bold text-gray-900 dark:text-white truncate leading-relaxed py-0.5">
-                                                {skill.name}
-                                            </h3>
-                                            <div className="flex items-center gap-2">
-                                                {skill.is_system && (
-                                                    <span className="bg-yellow-400/10 text-yellow-700 dark:text-yellow-400 text-[9px] font-black uppercase tracking-wider px-2 py-0.5 rounded-full border border-yellow-200/50">Core</span>
-                                                )}
-                                                <span className="text-[9px] font-bold text-gray-400 uppercase tracking-[0.1em]">{skill.skill_type}</span>
-                                            </div>
-                                        </div>
+                {/* --- IDE Right Pane: Code Editor --- */}
+                <div className="flex-grow flex flex-col min-w-0 relative bg-white dark:bg-[#1e1e1e]">
+                    {editingSkill ? (
+                        <>
+                            {/* Editor Tabs / Header */}
+                            <div className="h-10 border-b border-gray-200 dark:border-[#2d2d2d] flex flex-wrap items-center px-4 justify-between shrink-0 bg-gray-50/50 dark:bg-[#252526]">
+                                <div className="flex items-center gap-3">
+                                    <div className="flex items-center gap-2 text-gray-600 dark:text-gray-300 text-xs font-mono">
+                                        <Icon path="M9 12h6m-6 4h6m2 5H7a2 2 0 01-2-2V5a2 2 0 012-2h5.586a1 1 0 01.707.293l5.414 5.414a1 1 0 01.293.707V19a2 2 0 01-2 2z" className="w-3 h-3 opacity-70" />
+                                        {formData.name} / <span className="text-gray-900 dark:text-white font-bold">{activeFile || 'No file selected'}</span>
                                     </div>
-                                    <p className="text-gray-500 dark:text-gray-400 text-sm line-clamp-2 mb-4 flex-grow italic">
-                                        {skill.description || "No manifesto defined for this skill."}
-                                    </p>
-
-                                    <div className="flex flex-wrap gap-1.5 mb-6">
-                                        {(skill.features || []).map(f => (
-                                            <span key={f} className="bg-gray-100 dark:bg-gray-700 text-gray-600 dark:text-gray-300 text-[9px] uppercase font-black tracking-widest px-1.5 py-0.5 rounded-md border border-gray-200/50 dark:border-gray-600">
-                                                {f}
-                                            </span>
-                                        ))}
-                                    </div>
-
-                                    <div className="mt-auto flex items-center justify-between pt-4 border-t border-gray-50 dark:border-gray-700/50">
-                                        <div className="flex space-x-1 opacity-0 group-hover:opacity-100 transition-opacity duration-300">
-                                            {(isAdmin || skill.owner_id === user?.id) && !skill.is_system && (
-                                                <button onClick={() => openModal(skill)} className="p-2 text-gray-400 hover:text-indigo-500 hover:bg-indigo-50 dark:hover:bg-indigo-900/30 rounded-xl transition-all" title="Edit Logic">
-                                                    <Icon path="M11 5H6a2 2 0 00-2 2v11a2 2 0 002 2h11a2 2 0 002-2v-5m-1.414-9.414a2 2 0 112.828 2.828L11.828 15H9v-2.828l8.586-8.586z" className="w-4 h-4" />
-                                                </button>
-                                            )}
-                                            <button onClick={() => handleClone(skill)} className="p-2 text-gray-400 hover:text-green-500 hover:bg-green-50 dark:hover:bg-green-900/30 rounded-xl transition-all" title="Clone Pattern">
-                                                <Icon path="M8 7v8a2 2 0 002 2h6M8 7V5a2 2 0 012-2h4.586a1 1 0 01.707.293l4.414 4.414a1 1 0 01.293.707V19a2 2 0 01-2 2h-2M8 7H6a2 2 0 00-2 2v10a2 2 0 002 2h8a2 2 0 002-2v-2" className="w-4 h-4" />
-                                            </button>
-                                            {(isAdmin || skill.owner_id === user?.id) && !skill.is_system && (
-                                                <button onClick={() => handleDelete(skill.id)} className="p-2 text-gray-400 hover:text-red-500 hover:bg-red-50 dark:hover:bg-green-900/30 rounded-xl transition-all" title="Burn (Delete)">
-                                                    <Icon path="M19 7l-.867 12.142A2 2 0 0116.138 21H7.862a2 2 0 01-1.995-1.858L5 7m5 4v6m4-6v6m1-10V4a1 1 0 00-1-1h-4a1 1 0 00-1 1v3M4 7h16" className="w-4 h-4" />
-                                                </button>
-                                            )}
-                                        </div>
-
-                                        <button
-                                            onClick={() => setViewingDoc(skill)}
-                                            className="px-4 py-1.5 bg-gray-900 dark:bg-white text-white dark:text-gray-900 text-[10px] font-black uppercase rounded-xl hover:scale-105 active:scale-95 transition-all flex items-center gap-2 shadow-sm"
-                                        >
-                                            Docs
-                                            <Icon path="M9 12h6m-6 4h6m2 5H7a2 2 0 01-2-2V5a2 2 0 012-2h5.586a1 1 0 01.707.293l5.414 5.414a1 1 0 01.293.707V19a2 2 0 01-2 2z" className="w-3 h-3" />
-                                        </button>
-                                    </div>
+                                    {isSavingFile && <span className="text-green-500 text-[10px] animate-pulse">Autosaving...</span>}
                                 </div>
-                            ))}
+                                
+                                <div className="flex items-center gap-2">
+                                    {(isAdmin || editingSkill.owner_id === user?.id) && activeFile === 'SKILL.md' && (
+                                        <button onClick={() => {
+                                            const template = `---\nname: ${formData.name || 'my_custom_tool'}\ndescription: Write a detailed description of what this does.\n---\n\n### Execution Logic (Bash)\n\`\`\`bash\necho "Hello Cortex"\n\`\`\`\n`;
+                                            setActiveFileContent(template);
+                                            handleSaveActiveFile(template); // autosave trigger
+                                        }} className="text-[10px] px-2 py-1 border border-indigo-200 dark:border-indigo-900 bg-indigo-50 dark:bg-indigo-900/30 hover:bg-indigo-100 dark:hover:bg-indigo-800 text-indigo-700 dark:text-indigo-400 rounded transition-colors uppercase tracking-wider font-bold">
+                                            Insert Template
+                                        </button>
+                                    )}
+                                </div>
+                            </div>
+                            
+                            {/* Editor Main Content */}
+                            <div className="flex-grow flex min-h-0">
+                                {activeFile ? (
+                                    <div className="flex-grow flex relative">
+                                        <SkillEditor 
+                                            activeFile={activeFile}
+                                            content={activeFileContent}
+                                            onChange={(c) => {
+                                                setActiveFileContent(c);
+                                            }}
+                                            onSave={handleSaveActiveFile}
+                                            isSaving={isSavingFile}
+                                        />
+                                    </div>
+                                ) : (
+                                    <div className="flex-grow flex flex-col items-center justify-center text-gray-400 dark:text-gray-600">
+                                        <Icon path="M9 12h6m-6 4h6m2 5H7a2 2 0 01-2-2V5a2 2 0 012-2h5.586a1 1 0 01.707.293l5.414 5.414a1 1 0 01.293.707V19a2 2 0 01-2 2z" className="w-16 h-16 opacity-20 mb-4" />
+                                        <p className="font-mono text-xs">Select a file from the explorer to open the editor.</p>
+                                    </div>
+                                )}
+                            </div>
+                        </>
+                    ) : (
+                        <div className="flex-grow flex flex-col items-center justify-center text-gray-400 dark:text-gray-500 bg-gray-50 dark:bg-[#1e1e1e]">
+                            <Icon path="M10 20l4-16m4 4l4 4-4 4M6 16l-4-4 4-4" className="w-24 h-24 opacity-10 mb-6" />
+                            <h2 className="text-2xl font-black text-gray-300 dark:text-[#4d4d4d] mb-2 tracking-tight">Cortex Visual Studio</h2>
+                            <p className="text-sm opacity-50 font-medium">Create a new tool folder or select one to begin writing capabilities.</p>
                         </div>
                     )}
                 </div>
             </div>
 
-            {/* --- Modals (Logic Edit / Docs View) --- */}
-            {(isModalOpen || viewingDoc) && (
+            {/* --- Modals for Creation --- */}
+            {/* Create New Folder Modal purely prompts for the name */}
+            {!editingSkill && isModalOpen && (
                 <div className="fixed inset-0 z-50 flex items-center justify-center p-4 bg-black/60 backdrop-blur-sm animate-in fade-in duration-300">
-                    <div className="bg-white dark:bg-gray-800 rounded-[32px] w-full max-w-4xl max-h-[90vh] flex flex-col shadow-2xl overflow-hidden border border-gray-200/50 dark:border-gray-700/50">
-                        {/* Modal Header */}
-                        <div className="px-8 py-6 border-b border-gray-100 dark:border-gray-700 flex justify-between items-center bg-gray-50/50 dark:bg-gray-800/50">
-                            <div className="flex items-center gap-4">
-                                <div className="text-4xl">
-                                    {isModalOpen ? (formData.extra_metadata?.emoji || "⚙️") : (viewingDoc?.extra_metadata?.emoji || "📚")}
-                                </div>
-                                <div>
-                                    <h2 className="text-xl font-black text-gray-900 dark:text-white uppercase tracking-tight">
-                                        {isModalOpen
-                                            ? (editingSkill ? `Engineering: ${formData.name}` : "Create New Pattern")
-                                            : `Documentation: ${viewingDoc?.name}`
-                                        }
-                                    </h2>
-                                    <div className="flex items-center gap-3">
-                                        <p className="text-[10px] items-center flex gap-2 font-bold text-gray-400 uppercase tracking-widest">
-                                            Skill Library Protocol
-                                            <span className="w-1.5 h-1.5 rounded-full bg-green-500 animate-pulse"></span>
-                                        </p>
-                                        {isModalOpen && (
-                                            <button
-                                                onClick={() => setShowAdvanced(!showAdvanced)}
-                                                className={`text-[9px] font-black uppercase px-2 py-0.5 rounded-md border transition-all ${showAdvanced ? 'bg-indigo-500 border-indigo-500 text-white' : 'text-gray-400 border-gray-200 dark:border-gray-700'}`}
-                                            >
-                                                {showAdvanced ? "Engineering Mode: ON" : "Engineering Mode: OFF"}
-                                            </button>
-                                        )}
-                                    </div>
-                                </div>
+                    <div className="bg-white dark:bg-gray-800 rounded-2xl w-full max-w-sm shadow-2xl overflow-hidden border border-gray-200/50 dark:border-gray-700/50">
+                        <div className="px-6 py-4 border-b border-gray-100 dark:border-gray-700">
+                            <h3 className="text-sm font-black dark:text-white uppercase tracking-widest text-indigo-600 dark:text-indigo-400">New Tool Folder</h3>
+                        </div>
+                        <div className="p-6 pb-2">
+                            <label className="block text-xs font-bold text-gray-500 dark:text-gray-400 uppercase tracking-widest mb-2">Folder / Tool Name</label>
+                            <input 
+                                type="text"
+                                autoFocus
+                                value={formData.name || ''}
+                                onChange={(e) => setFormData({ ...formData, name: e.target.value.toLowerCase().replace(/[^a-z0-9_-]/g, '') })}
+                                className="w-full h-10 bg-gray-50 dark:bg-gray-900 border border-gray-200 dark:border-gray-700 rounded-lg px-4 font-mono focus:ring-2 focus:ring-indigo-500 outline-none text-sm dark:text-white"
+                                placeholder="e.g. aws_lambda_invoker"
+                                onKeyDown={(e) => {
+                                    if(e.key === 'Enter') handleSave()
+                                }}
+                            />
+                            <p className="text-[10px] text-gray-400 dark:text-gray-500 mt-3 font-semibold">Alphanumeric, underscores, and dashes only. Valid OS paths will be evaluated directly.</p>
+                            
+                            <label className="block text-xs font-bold text-gray-500 dark:text-gray-400 uppercase tracking-widest mb-2 mt-5">Target System</label>
+                            <div className="flex bg-gray-100 border border-gray-200 dark:border-gray-700 dark:bg-[#1a1c1e] rounded-lg p-1">
+                                {['swarm_control', 'voice_chat'].map(f => (
+                                    <button
+                                        key={f}
+                                        onClick={() => setFormData({ ...formData, features: [f] })}
+                                        className={`flex-1 py-1.5 text-[10px] font-black uppercase tracking-widest rounded-md transition-all ${
+                                            (formData.features || []).includes(f) 
+                                            ? 'bg-white dark:bg-[#2d2d30] text-indigo-600 dark:text-indigo-400 shadow-sm' 
+                                            : 'text-gray-500 dark:text-gray-500 hover:text-gray-700 dark:hover:text-gray-300'
+                                        }`}
+                                    >
+                                        {f.replace('_', ' ')}
+                                    </button>
+                                ))}
                             </div>
-                            <button onClick={closeModal} className="p-2 hover:bg-gray-100 dark:hover:bg-gray-700 rounded-full transition-colors text-gray-400">
-                                <Icon path="M6 18L18 6M6 6l12 12" className="w-6 h-6" />
+                        </div>
+                        <div className="px-6 py-4 border-t border-gray-100 dark:border-gray-700 flex justify-end gap-3 mt-4 bg-gray-50/50 dark:bg-gray-900/50">
+                            <button onClick={closeModal} className="px-4 py-2 text-xs font-bold text-gray-500 hover:text-gray-700 dark:hover:text-gray-300 uppercase tracking-wider transition-colors">Cancel</button>
+                            <button onClick={handleSave} className="px-6 py-2 bg-indigo-600 hover:bg-indigo-500 text-white rounded-lg text-xs font-black uppercase tracking-widest transition-transform active:scale-95 shadow-md shadow-indigo-600/20">
+                                MkDir
                             </button>
                         </div>
-
-                        {/* Modal Body */}
-                        <div className="flex-grow overflow-y-auto p-8 custom-scrollbar">
-                            {isModalOpen ? (
-                                <div className="grid grid-cols-1 md:grid-cols-2 gap-8">
-                                    {/* Left Side: Metadata */}
-                                    <div className="space-y-6">
-                                        <div>
-                                            <label className="block text-[10px] font-black uppercase text-gray-400 mb-2 tracking-widest">Identification</label>
-                                            <div className="grid grid-cols-4 gap-2">
-                                                <input
-                                                    type="text"
-                                                    value={formData.extra_metadata.emoji}
-                                                    onChange={(e) => setFormData({ ...formData, extra_metadata: { ...formData.extra_metadata, emoji: e.target.value } })}
-                                                    className="col-span-1 bg-gray-50 dark:bg-gray-900/50 border border-gray-200 dark:border-gray-700 rounded-2xl p-3 text-center text-2xl focus:ring-2 focus:ring-indigo-500 outline-none"
-                                                    placeholder="🛠️"
-                                                />
-                                                <input
-                                                    type="text"
-                                                    value={formData.name}
-                                                    onChange={(e) => setFormData({ ...formData, name: e.target.value })}
-                                                    className="col-span-3 bg-gray-50 dark:bg-gray-900/50 border border-gray-200 dark:border-gray-700 rounded-2xl px-4 py-3 focus:ring-2 focus:ring-indigo-500 outline-none font-bold"
-                                                    placeholder="skill_unique_id"
-                                                />
-                                            </div>
-                                        </div>
-
-                                        <div>
-                                            <label className="block text-[10px] font-black uppercase text-gray-400 mb-2 tracking-widest">The manifesto (Description)</label>
-                                            <textarea
-                                                value={formData.description}
-                                                onChange={(e) => setFormData({ ...formData, description: e.target.value })}
-                                                className="w-full bg-gray-50 dark:bg-gray-900/50 border border-gray-200 dark:border-gray-700 rounded-2xl p-4 min-h-[100px] text-sm focus:ring-2 focus:ring-indigo-500 outline-none transition-all"
-                                                placeholder="Define the purpose of this capability..."
-                                            />
-                                        </div>
-
-                                        <div className="grid grid-cols-2 gap-4">
-                                            <div>
-                                                <label className="block text-[10px] font-black uppercase text-gray-400 mb-2 tracking-widest">Protocol Type</label>
-                                                <select
-                                                    value={formData.skill_type}
-                                                    onChange={(e) => setFormData({ ...formData, skill_type: e.target.value })}
-                                                    className="w-full bg-gray-50 dark:bg-gray-900/50 border border-gray-200 dark:border-gray-700 rounded-2xl px-4 py-3 text-sm font-bold focus:ring-2 focus:ring-indigo-500 outline-none appearance-none"
-                                                >
-                                                    <option value="local">Native</option>
-                                                    <option value="mcp">MCP</option>
-                                                    <option value="remote_grpc">gRPC</option>
-                                                </select>
-                                            </div>
-                                            <div>
-                                                <label className="block text-[10px] font-black uppercase text-gray-400 mb-2 tracking-widest">Capabilities</label>
-                                                <div className="flex flex-wrap gap-2">
-                                                    {['swarm_control', 'voice_chat', 'workflow'].map(f => (
-                                                        <button
-                                                            key={f}
-                                                            onClick={() => {
-                                                                const newFeatures = formData.features.includes(f)
-                                                                    ? formData.features.filter(x => x !== f)
-                                                                    : [...formData.features, f];
-                                                                setFormData({ ...formData, features: newFeatures });
-                                                            }}
-                                                            className={`px-3 py-2 rounded-xl text-[10px] font-black uppercase border transition-all ${formData.features.includes(f)
-                                                                ? 'bg-indigo-600 border-indigo-600 text-white shadow-md'
-                                                                : 'bg-white dark:bg-transparent border-gray-200 dark:border-gray-700 text-gray-400'
-                                                                }`}
-                                                        >
-                                                            {f}
-                                                        </button>
-                                                    ))}
-                                                </div>
-                                            </div>
-                                        </div>
-
-                                        <div className="flex items-center gap-6 pt-4 border-t border-gray-50 dark:border-gray-700/50">
-                                            <label className="flex items-center gap-3 cursor-pointer group">
-                                                <div className={`w-10 h-6 rounded-full p-1 transition-all duration-300 ${formData.is_enabled ? 'bg-indigo-600' : 'bg-gray-300 dark:bg-gray-700'}`}>
-                                                    <div className={`w-4 h-4 bg-white rounded-full transition-transform duration-300 ${formData.is_enabled ? 'translate-x-4' : ''}`}></div>
-                                                </div>
-                                                <input type="checkbox" className="hidden" checked={formData.is_enabled} onChange={(e) => setFormData({ ...formData, is_enabled: e.target.checked })} />
-                                                <span className="text-xs font-bold uppercase text-gray-500 dark:text-gray-400 group-hover:text-indigo-500 transition-colors">Enabled</span>
-                                            </label>
-
-                                            {isAdmin && (
-                                                <label className="flex items-center gap-3 cursor-pointer group">
-                                                    <div className={`w-10 h-6 rounded-full p-1 transition-all duration-300 ${formData.is_system ? 'bg-yellow-500' : 'bg-gray-300 dark:bg-gray-700'}`}>
-                                                        <div className={`w-4 h-4 bg-white rounded-full transition-transform duration-300 ${formData.is_system ? 'translate-x-4' : ''}`}></div>
-                                                    </div>
-                                                    <input type="checkbox" className="hidden" checked={formData.is_system} onChange={(e) => setFormData({ ...formData, is_system: e.target.checked })} />
-                                                    <span className="text-xs font-bold uppercase text-gray-500 dark:text-gray-400 group-hover:text-yellow-600 transition-colors">System Core</span>
-                                                </label>
-                                            )}
-                                        </div>
-                                    </div>
-
-                                    {/* Right Side: Logics */}
-                                    <div className="space-y-6">
-                                        <div>
-                                            <label className="block text-[10px] font-black uppercase text-gray-400 mb-2 tracking-widest">Public Documentation (Markdown)</label>
-                                            <textarea
-                                                value={formData.preview_markdown}
-                                                onChange={(e) => setFormData({ ...formData, preview_markdown: e.target.value })}
-                                                className="w-full bg-gray-50 dark:bg-gray-900 border border-gray-200 dark:border-gray-700 rounded-2xl p-4 text-xs font-sans min-h-[300px] focus:ring-2 focus:ring-indigo-500 outline-none"
-                                                placeholder="Enter documentation for this skill..."
-                                            />
-                                        </div>
-
-                                        {showAdvanced && (
-                                            <div className="space-y-6 animate-in slide-in-from-right duration-300">
-                                                <div>
-                                                    <label className="block text-[10px] font-black uppercase text-gray-400 mb-2 tracking-widest">Intelligence Protocol (Prompt - Invisible to Users)</label>
-                                                    <textarea
-                                                        value={formData.system_prompt}
-                                                        onChange={(e) => setFormData({ ...formData, system_prompt: e.target.value })}
-                                                        className="w-full bg-gray-50 dark:bg-gray-900 border border-gray-200 dark:border-gray-700 rounded-2xl p-4 text-xs font-mono min-h-[140px] focus:ring-2 focus:ring-indigo-500 outline-none"
-                                                        placeholder="Enter system prompt for the model..."
-                                                    />
-                                                </div>
-                                                <div>
-                                                    <label className="block text-[10px] font-black uppercase text-gray-400 mb-2 tracking-widest">Network Config (JSON)</label>
-                                                    <textarea
-                                                        value={formData.config}
-                                                        onChange={(e) => setFormData({ ...formData, config: e.target.value })}
-                                                        className="w-full bg-gray-950 text-indigo-400 font-mono text-[10px] p-4 rounded-2xl min-h-[140px] border border-gray-800 focus:ring-2 focus:ring-indigo-500 outline-none shadow-inner"
-                                                    />
-                                                </div>
-                                            </div>
-                                        )}
-                                    </div>
-                                </div>
-                            ) : (
-                                <div className="max-w-2xl mx-auto space-y-8">
-                                    <div className="p-8 bg-indigo-50/50 dark:bg-indigo-900/10 border border-indigo-100 dark:border-indigo-800 rounded-[32px] shadow-inner">
-                                        <h3 className="text-sm font-black uppercase text-indigo-600 dark:text-indigo-400 mb-4 tracking-tighter">Manifesto Overview</h3>
-                                        <p className="text-gray-700 dark:text-gray-300 leading-relaxed text-lg italic">
-                                            {viewingDoc.description}
-                                        </p>
-                                    </div>
-
-                                    {viewingDoc.preview_markdown && (
-                                        <div className="space-y-4">
-                                            <div className="flex items-center justify-between">
-                                                <h3 className="text-xs font-black uppercase text-gray-400 tracking-[0.2em]">
-                                                    {showRawDoc ? "Intelligence Blueprint (Raw)" : "Operational Documentation"}
-                                                </h3>
-                                                <button
-                                                    onClick={() => setShowRawDoc(!showRawDoc)}
-                                                    className="text-[10px] font-black uppercase text-indigo-500 hover:text-indigo-600 dark:text-indigo-400 hover:underline transition-all"
-                                                >
-                                                    {showRawDoc ? "Show Preview" : "Raw Content"}
-                                                </button>
-                                            </div>
-                                            <div className="bg-white dark:bg-gray-900/50 border border-gray-100 dark:border-gray-700 rounded-[32px] p-8 prose dark:prose-invert max-w-none shadow-sm min-h-[400px]">
-                                                {showRawDoc ? (
-                                                    <div className="whitespace-pre-wrap font-mono text-[11px] leading-relaxed text-gray-600 dark:text-gray-400 bg-gray-50 dark:bg-gray-950/50 p-6 rounded-2xl border border-gray-100 dark:border-gray-800">
-                                                        {viewingDoc.preview_markdown}
-                                                    </div>
-                                                ) : (
-                                                    <div className="font-sans leading-7 text-gray-600 dark:text-gray-400 markdown-preview">
-                                                        <ReactMarkdown>{viewingDoc.preview_markdown}</ReactMarkdown>
-                                                    </div>
-                                                )}
-                                            </div>
-                                        </div>
-                                    )}
-
-                                    {!viewingDoc.preview_markdown && (
-                                        <div className="py-20 text-center">
-                                            <div className="w-20 h-20 bg-gray-50 dark:bg-gray-800 rounded-full flex items-center justify-center mx-auto mb-6">
-                                                <Icon path="M13 16h-1v-4h-1m1-4h.01M21 12a9 9 0 11-18 0 9 9 0 0118 0z" className="w-8 h-8 text-gray-300" />
-                                            </div>
-                                            <p className="text-gray-400 font-medium italic">This pattern does not include external documentation.</p>
-                                        </div>
-                                    )}
-                                </div>
-                            )}
-                        </div>
-
-                        {/* Modal Footer */}
-                        <div className="px-8 py-6 bg-gray-50 dark:bg-gray-800/80 border-t border-gray-100 dark:border-gray-700 flex justify-end gap-3 items-center z-10">
-                            <button
-                                onClick={closeModal}
-                                className="px-6 py-3 text-sm font-bold text-gray-500 hover:text-gray-900 dark:hover:text-white transition-colors"
-                            >
-                                {viewingDoc ? 'Dismiss' : 'Cancel'}
-                            </button>
-                            {isModalOpen && (
-                                <button
-                                    onClick={handleSave}
-                                    className="px-10 py-3 bg-indigo-600 hover:bg-indigo-700 text-white text-sm font-black uppercase rounded-[20px] shadow-xl shadow-indigo-600/20 hover:scale-105 active:scale-95 transition-all flex items-center gap-2"
-                                >
-                                    <Icon path="M5 13l4 4L19 7" className="w-4 h-4" />
-                                    {editingSkill ? 'Commit Changes' : 'Deploy Skill'}
-                                </button>
-                            )}
-                            {viewingDoc && (isAdmin || viewingDoc.owner_id === user?.id) && !viewingDoc.is_system && (
-                                <button
-                                    onClick={() => { closeModal(); openModal(viewingDoc); }}
-                                    className="px-10 py-3 bg-indigo-600 hover:bg-indigo-700 text-white text-sm font-black uppercase rounded-[20px] shadow-xl shadow-indigo-600/20 hover:scale-105 active:scale-95 transition-all flex items-center gap-2"
-                                >
-                                    <Icon path="M11 5H6a2 2 0 00-2 2v11a2 2 0 002 2h11a2 2 0 002-2v-5m-1.414-9.414a2 2 0 112.828 2.828L11.828 15H9v-2.828l8.586-8.586z" className="w-4 h-4" />
-                                    Edit Logic
-                                </button>
-                            )}
-                        </div>
-                    </div>
-                </div>
-            )}
-
-            {/* ERROR MODAL */}
-            {errorModalMessage && (
-                <div className="fixed inset-0 z-[120] flex items-center justify-center bg-black/60 backdrop-blur-sm p-4 animate-in fade-in duration-200">
-                    <div className="bg-white dark:bg-gray-800 rounded-[32px] w-full max-w-md shadow-2xl overflow-hidden animate-in zoom-in-95 duration-200 border border-red-50 dark:border-red-900">
-                        <div className="p-8 text-center">
-                            <div className="w-20 h-20 bg-red-50 dark:bg-red-900/20 rounded-full flex items-center justify-center mx-auto mb-6">
-                                <Icon path="M12 9v2m0 4h.01m-6.938 4h13.856c1.54 0 2.502-1.667 1.732-3L13.732 4c-.77-1.333-2.694-1.333-3.464 0L3.34 16c-.77 1.333.192 3 1.732 3z" className="w-10 h-10 text-red-500" />
-                            </div>
-                            <h3 className="text-xl font-black text-gray-900 dark:text-white uppercase tracking-tight mb-2">Protocol Violation</h3>
-                            <p className="text-sm text-gray-500 dark:text-gray-400 mb-8 italic">{errorModalMessage}</p>
-                            <button
-                                onClick={() => setErrorModalMessage(null)}
-                                className="w-full py-4 text-xs font-black uppercase tracking-widest text-white bg-indigo-600 hover:bg-indigo-700 rounded-2xl transition-all shadow-xl shadow-indigo-600/20 active:scale-95"
-                            >
-                                Dismiss
-                            </button>
-                        </div>
-                    </div>
-                </div>
-            )}
-
-            {/* CONFIRM DELETE MODAL */}
-            {confirmDeleteId && (
-                <div className="fixed inset-0 z-[120] flex items-center justify-center bg-black/60 backdrop-blur-sm p-4 animate-in fade-in duration-200">
-                    <div className="bg-white dark:bg-gray-800 rounded-[32px] w-full max-w-md shadow-2xl overflow-hidden animate-in zoom-in-95 duration-200 border dark:border-gray-700">
-                        <div className="p-8 text-center">
-                            <div className="w-20 h-20 bg-red-50 dark:bg-red-900/20 rounded-full flex items-center justify-center mx-auto mb-6 text-3xl">
-                                🔥
-                            </div>
-                            <h3 className="text-xl font-black text-gray-900 dark:text-white uppercase tracking-tight mb-2">Decomission Skill?</h3>
-                            <p className="text-sm text-gray-500 dark:text-gray-400 mb-8 italic">
-                                Are you certain you wish to purge this capability? This action is irreversible.
-                            </p>
-                            <div className="flex gap-4">
-                                <button
-                                    onClick={() => setConfirmDeleteId(null)}
-                                    className="flex-1 py-4 text-xs font-black uppercase tracking-widest text-gray-500 hover:text-gray-700 dark:hover:text-white transition-colors"
-                                >
-                                    Cancel
-                                </button>
-                                <button
-                                    onClick={confirmDelete}
-                                    className="flex-1 py-4 text-xs font-black uppercase tracking-widest text-white bg-red-600 hover:bg-red-700 rounded-2xl transition-all shadow-xl shadow-red-600/20 active:scale-95"
-                                >
-                                    Confirm
-                                </button>
-                            </div>
-                        </div>
                     </div>
                 </div>
             )}
diff --git a/frontend/src/features/skills/pages/SkillsPage.js b/frontend/src/features/skills/pages/SkillsPage.js
index 0a61314..81087ac 100644
--- a/frontend/src/features/skills/pages/SkillsPage.js
+++ b/frontend/src/features/skills/pages/SkillsPage.js
@@ -1,6 +1,6 @@
 import React, { useState, useEffect, useMemo } from 'react';
 import SkillsPageContent from '../components/SkillsPageContent';
-import { getSkills, createSkill, updateSkill, deleteSkill } from '../../../services/apiService';
+import { getSkills, createSkill, updateSkill, deleteSkill, getSkillFiles, getSkillFileContent, saveSkillFile, deleteSkillFile } from '../../../services/apiService';
 
 export default function SkillsPage({ user, Icon }) {
     const [skills, setSkills] = useState([]);
@@ -9,8 +9,6 @@
     const [searchQuery, setSearchQuery] = useState('');
     const [activeFilter, setActiveFilter] = useState('all'); // all, system, mine, group
     const [showSystemSkills, setShowSystemSkills] = useState(false);
-    const [viewingDoc, setViewingDoc] = useState(null);
-    const [showRawDoc, setShowRawDoc] = useState(false);
     const [errorModalMessage, setErrorModalMessage] = useState(null);
     const [confirmDeleteId, setConfirmDeleteId] = useState(null);
 
@@ -21,15 +19,90 @@
         name: '',
         description: '',
         skill_type: 'local',
-        config: '{}',
         is_system: false,
-        system_prompt: '',
         is_enabled: true,
         features: ['swarm_control'],
-        extra_metadata: { emoji: '⚙️' },
-        preview_markdown: ''
+        extra_metadata: { emoji: '⚙️' }
     });
-    const [showAdvanced, setShowAdvanced] = useState(false);
+    // VFS State
+    const [skillFiles, setSkillFiles] = useState([]);
+    const [activeFile, setActiveFile] = useState(null);
+    const [activeFileContent, setActiveFileContent] = useState('');
+    const [isSavingFile, setIsSavingFile] = useState(false);
+
+    const loadFiles = async (skillId) => {
+        try {
+            const files = await getSkillFiles(skillId);
+            setSkillFiles(files);
+            if (files.some(f => f.path === 'SKILL.md')) {
+                loadContent(skillId, 'SKILL.md');
+            } else if (files.length > 0) {
+                loadContent(skillId, files[0].path);
+            } else {
+                setActiveFile(null);
+                setActiveFileContent('');
+            }
+        } catch (e) {
+            console.error("Failed to load files", e);
+        }
+    };
+
+    const loadContent = async (skillId, path) => {
+        try {
+            const file = await getSkillFileContent(skillId, path);
+            setActiveFile(path);
+            setActiveFileContent(file.content || '');
+        } catch (e) {
+            console.error("Failed to load content", e);
+        }
+    };
+
+    const handleSelectFile = (path) => {
+        if (!editingSkill) return;
+        loadContent(editingSkill.id, path);
+    };
+
+    const handleAddFile = async (path) => {
+        if (!editingSkill) return;
+        try {
+            await saveSkillFile(editingSkill.id, path, '');
+            await loadFiles(editingSkill.id);
+            loadContent(editingSkill.id, path);
+        } catch (e) {
+            setErrorModalMessage("Failed to create file.");
+        }
+    };
+
+    const handleSaveActiveFile = async (contentOverride = null) => {
+        if (!activeFile || !editingSkill) return;
+        setIsSavingFile(true);
+        try {
+            const contentToSave = typeof contentOverride === 'string' ? contentOverride : activeFileContent;
+            await saveSkillFile(editingSkill.id, activeFile, contentToSave);
+            // Also explicitly ensure local state is updated just in case it was called directly via override
+            if (typeof contentOverride === 'string') {
+                setActiveFileContent(contentOverride);
+            }
+        } catch (err) {
+            setErrorModalMessage(`Failed to save ${activeFile}. Check permissions.`);
+        } finally {
+            setIsSavingFile(false);
+        }
+    };
+
+    const handleDeleteFile = async (path) => {
+        if (!editingSkill) return;
+        try {
+            await deleteSkillFile(editingSkill.id, path);
+            if (activeFile === path) {
+                setActiveFile(null);
+                setActiveFileContent('');
+            }
+            await loadFiles(editingSkill.id);
+        } catch (e) {
+            setErrorModalMessage("Failed to delete file.");
+        }
+    };
 
     const fetchSkills = async () => {
         try {
@@ -75,31 +148,29 @@
     const openModal = (skill = null) => {
         if (skill) {
             setEditingSkill(skill);
+            if (skill.id) loadFiles(skill.id);
             setFormData({
                 name: skill.name,
                 description: skill.description || '',
                 skill_type: skill.skill_type,
-                config: JSON.stringify(skill.config, null, 2),
                 is_system: skill.is_system,
-                system_prompt: skill.system_prompt || '',
                 is_enabled: skill.is_enabled ?? true,
                 features: skill.features || ['swarm_control'],
-                extra_metadata: skill.extra_metadata || { emoji: '⚙️' },
-                preview_markdown: skill.preview_markdown || ''
+                extra_metadata: skill.extra_metadata || { emoji: '⚙️' }
             });
         } else {
             setEditingSkill(null);
+            setSkillFiles([]);
+            setActiveFile(null);
+            setActiveFileContent('');
             setFormData({
                 name: '',
                 description: '',
                 skill_type: 'local',
-                config: '{}',
                 is_system: false,
-                system_prompt: '',
                 is_enabled: true,
                 features: ['swarm_control'],
-                extra_metadata: { emoji: '⚙️' },
-                preview_markdown: ''
+                extra_metadata: { emoji: '⚙️' }
             });
         }
         setIsModalOpen(true);
@@ -111,13 +182,10 @@
             name: `${skill.name}_clone`,
             description: skill.description || '',
             skill_type: skill.skill_type,
-            config: JSON.stringify(skill.config, null, 2),
             is_system: false,
-            system_prompt: skill.system_prompt || '',
             is_enabled: true,
             features: skill.features || ['swarm_control'],
-            extra_metadata: skill.extra_metadata || { emoji: '⚙️' },
-            preview_markdown: skill.preview_markdown || ''
+            extra_metadata: skill.extra_metadata || { emoji: '⚙️' }
         });
         setIsModalOpen(true);
     };
@@ -125,34 +193,23 @@
     const closeModal = () => {
         setIsModalOpen(false);
         setEditingSkill(null);
-        setViewingDoc(null);
-        setShowRawDoc(false);
     };
 
     const handleSave = async () => {
         try {
-            let configObj = {};
-            try {
-                configObj = JSON.parse(formData.config);
-            } catch (e) {
-                setErrorModalMessage("Invalid JSON in config. Please verify your syntax.");
-                return;
-            }
-
-            const payload = {
-                ...formData,
-                config: configObj
-            };
+            const payload = { ...formData };
 
             if (editingSkill) {
                 await updateSkill(editingSkill.id, payload);
+                fetchSkills(); // refresh the list softly
             } else {
-                await createSkill(payload);
+                const newSkill = await createSkill(payload);
+                await fetchSkills();
+                // Close the creation modal overlay, but immediately open the IDE on the new folder
+                openModal(newSkill); 
             }
-            closeModal();
-            fetchSkills();
         } catch (err) {
-            setErrorModalMessage("Error saving skill. Please check your permissions and try again.");
+            setErrorModalMessage("Error saving folder. Please check your permissions and try again.");
         }
     };
 
@@ -185,10 +242,6 @@
         setActiveFilter,
         showSystemSkills,
         setShowSystemSkills,
-        viewingDoc,
-        setViewingDoc,
-        showRawDoc,
-        setShowRawDoc,
         isModalOpen,
         openModal,
         closeModal,
@@ -201,13 +254,20 @@
         editingSkill,
         formData,
         setFormData,
-        showAdvanced,
-        setShowAdvanced,
         errorModalMessage,
         setErrorModalMessage,
         confirmDeleteId,
         setConfirmDeleteId,
-        confirmDelete
+        confirmDelete,
+        skillFiles,
+        activeFile,
+        activeFileContent,
+        setActiveFileContent,
+        isSavingFile,
+        handleSelectFile,
+        handleAddFile,
+        handleSaveActiveFile,
+        handleDeleteFile
     };
 
     return <SkillsPageContent context={context} />;
diff --git a/frontend/src/features/swarm/pages/SwarmControlPage.js b/frontend/src/features/swarm/pages/SwarmControlPage.js
index 3923c83..1fea908 100644
--- a/frontend/src/features/swarm/pages/SwarmControlPage.js
+++ b/frontend/src/features/swarm/pages/SwarmControlPage.js
@@ -541,7 +541,7 @@
                       </div>
                     </div>
 
-                    <div className="flex flex-col items-end hidden md:flex">
+                    <div className="flex flex-col items-end hidden md:flex cursor-help relative group/token">
                         <div className="text-[10px] font-bold text-gray-400 dark:text-gray-500 uppercase tracking-widest mb-1">
                         Token Usage
                       </div>
@@ -556,6 +556,10 @@
                           {tokenUsage?.percentage || 0}%
                         </span>
                       </div>
+                      <div className="absolute bottom-full right-0 mb-2 px-3 py-2 bg-gray-900 border border-gray-700 text-white text-[10px] font-bold rounded shadow-xl opacity-0 group-hover/token:opacity-100 transition-all whitespace-nowrap z-[60] pointer-events-none text-right">
+                        <span className="text-indigo-400">Context Window Capacity</span><br />
+                        <span className="text-gray-300 font-normal text-[11px] font-mono mt-1 block">{(tokenUsage?.token_count || 0).toLocaleString()} / {(tokenUsage?.token_limit || 0).toLocaleString()}</span>
+                      </div>
                     </div>
                   </div>
                   <div className="relative group/clearchat">
diff --git a/frontend/src/features/voice/pages/VoiceChatPage.js b/frontend/src/features/voice/pages/VoiceChatPage.js
index 201de72..774de36 100644
--- a/frontend/src/features/voice/pages/VoiceChatPage.js
+++ b/frontend/src/features/voice/pages/VoiceChatPage.js
@@ -114,7 +114,7 @@
                   </button>
                 </div>
                 <div className="flex items-center space-x-6">
-                  <div className="flex flex-col items-end">
+                  <div className="flex flex-col items-end cursor-help relative group/token">
                     <div className="text-[10px] font-bold text-gray-400 dark:text-gray-400 uppercase tracking-widest mb-1">
                       Token Usage
                     </div>
@@ -129,6 +129,10 @@
                         {tokenUsage?.percentage || 0}%
                       </span>
                     </div>
+                    <div className="absolute top-full right-0 mt-2 px-3 py-2 bg-gray-900 border border-gray-700 text-white text-[10px] font-bold rounded shadow-xl opacity-0 group-hover/token:opacity-100 transition-all whitespace-nowrap z-[60] pointer-events-none text-right">
+                      <span className="text-indigo-400">Context Window Capacity</span><br />
+                      <span className="text-gray-300 font-normal text-[11px] font-mono mt-1 block">{(tokenUsage?.token_count || 0).toLocaleString()} / {(tokenUsage?.token_limit || 0).toLocaleString()}</span>
+                    </div>
                   </div>
                   <button
                     onClick={handleNewSession}
diff --git a/frontend/src/services/api/skillService.js b/frontend/src/services/api/skillService.js
index 473f0b7..1be97f5 100644
--- a/frontend/src/services/api/skillService.js
+++ b/frontend/src/services/api/skillService.js
@@ -35,3 +35,26 @@
     method: "DELETE"
   });
 };
+
+// --- VFS API ---
+
+export const getSkillFiles = async (skillId) => {
+  return await fetchWithAuth(`/skills/${skillId}/files`);
+};
+
+export const getSkillFileContent = async (skillId, path) => {
+  return await fetchWithAuth(`/skills/${skillId}/files/${encodeURIComponent(path)}`);
+};
+
+export const saveSkillFile = async (skillId, path, content) => {
+  return await fetchWithAuth(`/skills/${skillId}/files/${encodeURIComponent(path)}`, {
+    method: "POST",
+    body: { content }
+  });
+};
+
+export const deleteSkillFile = async (skillId, path) => {
+  return await fetchWithAuth(`/skills/${skillId}/files/${encodeURIComponent(path)}`, {
+    method: "DELETE"
+  });
+};
diff --git a/prod_snippet b/prod_snippet
new file mode 160000
index 0000000..2eb47eb
--- /dev/null
+++ b/prod_snippet
@@ -0,0 +1 @@
+Subproject commit 2eb47ebdb89b4f4b5f38c5146494ce4b8c94f705
diff --git a/scripts/migrate_skills_to_fs.py b/scripts/migrate_skills_to_fs.py
new file mode 100644
index 0000000..59d8e1e
--- /dev/null
+++ b/scripts/migrate_skills_to_fs.py
@@ -0,0 +1,97 @@
+import os
+import sys
+import json
+import logging
+from sqlalchemy import create_engine
+from sqlalchemy.orm import sessionmaker
+
+# Add the ai-hub to sys.path
+sys.path.insert(0, '/app')
+from app.db.models import Skill, SkillFile
+from app.config import settings
+
+logging.basicConfig(level=logging.INFO)
+logger = logging.getLogger(__name__)
+
+# The new unified skills directory
+BASE_DATA_DIR = "/app/data"
+SKILLS_DIR = os.path.join(BASE_DATA_DIR, "skills")
+logger.info(f"Target Skills Directory: {SKILLS_DIR}")
+
+def migrate():
+    # Setup Database Connection
+    db_url = settings.DATABASE_URL
+    if not db_url:
+        logger.error("DATABASE_URL is not set!")
+        sys.exit(1)
+        
+    engine = create_engine(db_url)
+    Session = sessionmaker(bind=engine)
+    session = Session()
+
+    try:
+        skills = session.query(Skill).all()
+        logger.info(f"Found {len(skills)} skills in the database. Starting migration...")
+
+        os.makedirs(SKILLS_DIR, exist_ok=True)
+
+        for skill in skills:
+            # 1. Determine Feature Parent Directory (default to 'swarm_control' if none)
+            feature = "swarm_control"
+            if skill.features and isinstance(skill.features, list) and len(skill.features) > 0:
+                feature = skill.features[0]
+            elif isinstance(skill.features, str):
+                try:
+                    features_list = json.loads(skill.features)
+                    if features_list: feature = features_list[0]
+                except:
+                    feature = skill.features
+
+            # Slugify the skill name for the folder
+            slug = skill.name.replace(" ", "_").lower()
+            
+            # Target path: /app/data/skills/swarm_control/get_weather/
+            target_path = os.path.join(SKILLS_DIR, feature, slug)
+            os.makedirs(target_path, exist_ok=True)
+            
+            logger.info(f"Migrating Skill '{skill.name}' -> {target_path}")
+
+            # 2. Write Virtual Files
+            skill_md_content = None
+            has_files = False
+            for sf in skill.files:
+                has_files = True
+                file_abs_path = os.path.join(target_path, sf.file_path)
+                os.makedirs(os.path.dirname(file_abs_path), exist_ok=True)
+                with open(file_abs_path, "w") as f:
+                    f.write(sf.content or "")
+                
+                if sf.file_path == "SKILL.md":
+                    skill_md_content = sf.content
+
+            # If it didn't have a SKILL.md for some reason but has an old-style description:
+            if not skill_md_content:
+                logger.warning(f"Skill '{skill.name}' had no SKILL.md. Generating one...")
+                with open(os.path.join(target_path, "SKILL.md"), "w") as f:
+                    f.write(f"### Skill Name: {skill.name}\n\n{skill.description or 'No description provided.'}\n")
+
+            # 3. Write Invisible Metadata File (.metadata.json)
+            # This handles access control and legacy UI metadata properties
+            metadata = {
+                "owner_id": skill.owner_id,
+                "is_system": skill.is_system,
+                "id": skill.id,  # keep track just in case
+                "extra_metadata": skill.extra_metadata or {"emoji": "🛠️"}
+            }
+            with open(os.path.join(target_path, ".metadata.json"), "w") as f:
+                json.dump(metadata, f, indent=4)
+                
+        logger.info("Migration strictly to File System completed perfectly!")
+
+    except Exception as e:
+        logger.error(f"Migration Failed: {e}")
+    finally:
+        session.close()
+
+if __name__ == "__main__":
+    migrate()
diff --git a/scripts/remote_deploy.sh b/scripts/remote_deploy.sh
index 1816075..56452de 100755
--- a/scripts/remote_deploy.sh
+++ b/scripts/remote_deploy.sh
@@ -70,6 +70,7 @@
   --exclude '.venv' \
   --exclude 'config.yaml' \
   --exclude 'ai-hub/config.yaml' \
+  --exclude 'data/' \
   --exclude '.env*' \
   -e "ssh -o StrictHostKeyChecking=no" /app/ "$USER@$HOST:$REMOTE_TMP"
 
@@ -81,7 +82,7 @@
 # 2. Sync from the temporary directory to the actual project directory
 echo "Overwriting production project files..."
 sshpass -p "$PASS" ssh -o StrictHostKeyChecking=no "$USER@$HOST" << EOF
-  echo '$PASS' | sudo -S rsync -av --delete ${REMOTE_TMP}/ $REMOTE_PROJ/
+  echo '$PASS' | sudo -S rsync -av --delete --exclude 'data/' ${REMOTE_TMP}/ $REMOTE_PROJ/
   echo '$PASS' | sudo -S chown -R $USER:$USER $REMOTE_PROJ
 EOF
 
diff --git a/skills/browser-automation-agent/SKILL.md b/skills/browser-automation-agent/SKILL.md
index e50bdde..c284d40 100644
--- a/skills/browser-automation-agent/SKILL.md
+++ b/skills/browser-automation-agent/SKILL.md
@@ -54,7 +54,9 @@
       y:
         type: integer
         description: Pixels to scroll vertically (for 'scroll' action, default 400).
-          actions to maintain cookies, login state, and element refs.
+      session_id:
+        type: string
+        description: Optional override. Use the same session_id across multiple actions to maintain cookies, login state, and element refs.
       urls:
         type: array
         items:
diff --git a/skills/read-skill-artifact/SKILL.md b/skills/read-skill-artifact/SKILL.md
new file mode 100644
index 0000000..7c988cc
--- /dev/null
+++ b/skills/read-skill-artifact/SKILL.md
@@ -0,0 +1,38 @@
+---
+name: read_skill_artifact
+emoji: "📂"
+description: Lazily read a file from a skill's Virtual File System (SKILL.md, scripts/, artifacts/). Use this to load skill instructions or scripts on demand without polluting the system context.
+skill_type: local
+is_enabled: true
+features:
+- chat
+- swarm_control
+- voice_chat
+config:
+  parameters:
+    type: object
+    properties:
+      skill_name:
+        type: string
+        description: The unique name of the skill whose file to read (e.g. 'browser_automation_agent').
+      file_path:
+        type: string
+        description: "The relative path of the file to read within the skill folder (e.g. 'SKILL.md', 'scripts/run.py', 'artifacts/data.json'). Defaults to 'SKILL.md'."
+    required:
+    - skill_name
+is_system: true
+---
+
+# Read Skill Artifact
+
+Use this tool to lazily load instructions, scripts, or reference data from a skill's virtual folder. This avoids polluting the initial system prompt with megabytes of context that might never be needed.
+
+**When to use:**
+- You have been asked to use a particular skill and need to read its operating instructions.
+- You want to inspect a script inside a skill's `scripts/` folder before executing it.
+- You need to read a reference file inside `artifacts/` for a task.
+
+**Workflow:**
+1. Call `read_skill_artifact` with the `skill_name` and `file_path`.
+2. Read the returned content.
+3. Use the instructions or scripts from the content to proceed with the task.