diff --git a/packages/core/src/code-mode.ts b/packages/core/src/code-mode.ts
new file mode 100644
index 0000000000..3975f3ab95
--- /dev/null
+++ b/packages/core/src/code-mode.ts
@@ -0,0 +1,127 @@
+export * as CodeModeV2 from "./code-mode"
+
+import type { CodeMode } from "@opencode-ai/plugin/v2/effect"
+import { Context, Effect, Layer, Scope } from "effect"
+import { makeLocationNode } from "./effect/app-node"
+import { Flag } from "./flag/flag"
+import { PermissionV2 } from "./permission"
+import { ExecuteTool } from "./code-mode/execute"
+import { permission, RegistrationError, type AnyTool } from "./tool/tool"
+import { Wildcard } from "./util/wildcard"
+
+type Registration = {
+  readonly identity: object
+  readonly tool: AnyTool
+  readonly name: string
+  readonly path: readonly [string, ...string[]]
+}
+
+export interface MaterializeInput {
+  readonly permissions?: PermissionV2.Ruleset
+}
+
+export interface Interface {
+  readonly enabled: boolean
+  readonly register: (
+    source: (draft: CodeMode.Draft) => void,
+  ) => Effect.Effect<void, RegistrationError, Scope.Scope>
+  readonly materialize: (input: MaterializeInput) => Effect.Effect<AnyTool | undefined>
+}
+
+export class Service extends Context.Service<Service, Interface>()("@opencode/v2/CodeMode") {}
+
+const layer = Layer.effect(
+  Service,
+  Effect.gen(function* () {
+    const enabled = Flag.CODEMODE_ENABLED
+    const local = new Map<string, Array<{ readonly token: object; readonly registration: Registration }>>()
+
+    return Service.of({
+      enabled,
+      register: Effect.fn("CodeMode.register")(function* (source) {
+        const pending: Array<{ readonly path: readonly [string, ...string[]]; readonly tool: AnyTool }> = []
+        yield* Effect.sync(() =>
+          source({
+            add: (path, tool) => pending.push({ path, tool }),
+          }),
+        )
+        if (pending.length === 0) return
+
+        const entries = pending.map((entry) => ({
+          ...entry,
+          key: entry.path.join("\0"),
+          name: entry.path.join("_"),
+        }))
+        const invalid = entries.find((entry) => entry.path.some((segment) => segment.length === 0))
+        if (invalid)
+          return yield* new RegistrationError({
+            name: invalid.path.join("."),
+            message: "Code Mode paths cannot contain empty segments",
+          })
+        const keys = new Set<string>()
+        const duplicate = entries.find((entry) => {
+          if (keys.has(entry.key)) return true
+          keys.add(entry.key)
+          return false
+        })
+        if (duplicate)
+          return yield* new RegistrationError({
+            name: duplicate.path.join("."),
+            message: `Duplicate Code Mode path: ${duplicate.path.join(".")}`,
+          })
+
+        yield* Effect.uninterruptible(
+          Effect.gen(function* () {
+            const token = {}
+            for (const entry of entries)
+              local.set(entry.key, [
+                ...(local.get(entry.key) ?? []),
+                {
+                  token,
+                  registration: {
+                    identity: {},
+                    tool: entry.tool,
+                    name: entry.name,
+                    path: entry.path,
+                  },
+                },
+              ])
+            yield* Effect.addFinalizer(() =>
+              Effect.sync(() => {
+                for (const entry of entries) {
+                  const registrations = local.get(entry.key)?.filter((item) => item.token !== token) ?? []
+                  if (registrations.length > 0) local.set(entry.key, registrations)
+                  else local.delete(entry.key)
+                }
+              }),
+            )
+          }),
+        )
+      }),
+      materialize: Effect.fn("CodeMode.materialize")(function* (input) {
+        if (!enabled || whollyDisabled("execute", input.permissions ?? [])) return undefined
+        const registrations = new Map<string, Registration>()
+        for (const [key, entries] of local) {
+          const registration = entries.at(-1)?.registration
+          if (
+            registration &&
+            !whollyDisabled(permission(registration.tool, registration.name), input.permissions ?? [])
+          )
+            registrations.set(key, registration)
+        }
+        if (registrations.size === 0) return undefined
+        return ExecuteTool.create({
+          registrations,
+          current: (key) => local.get(key)?.at(-1)?.registration,
+        })
+      }),
+    })
+  }),
+)
+
+function whollyDisabled(action: string, rules: PermissionV2.Ruleset) {
+  const rule = rules.findLast((rule) => Wildcard.match(action, rule.action))
+  return rule?.resource === "*" && rule.effect === "deny"
+}
+
+export const node = makeLocationNode({ service: Service, layer, deps: [] })
diff --git a/packages/core/src/tool/execute.ts b/packages/core/src/code-mode/execute.ts
similarity index 83%
rename from packages/core/src/tool/execute.ts
rename to packages/core/src/code-mode/execute.ts
index f5bd776e5a..2031e4daf4 100644
--- a/packages/core/src/tool/execute.ts
+++ b/packages/core/src/code-mode/execute.ts
@@ -3,7 +3,7 @@ export * as ExecuteTool from "./execute"
 import { CodeMode, Tool, toolError } from "@opencode-ai/codemode"
 import { ToolOutput } from "@opencode-ai/llm"
 import { Effect, Ref, Schema } from "effect"
-import { definition, make, settle, type AnyTool } from "./tool"
+import { definition, make, settle, type AnyTool } from "../tool/tool"
 
 const ExecuteFile = Schema.Struct({
   data: Schema.String,
@@ -40,7 +40,11 @@ export interface Registration {
   readonly identity: object
   readonly tool: AnyTool
   readonly name: string
-  readonly group?: string
+  readonly path: readonly [string, ...string[]]
+}
+
+interface CodeModeTools {
+  [name: string]: Tool.Definition<never> | CodeModeTools
 }
 
 export const create = (options: {
@@ -51,33 +55,16 @@ export const create = (options: {
     invoke: (name: string, registration: Registration, input: unknown) => Effect.Effect<unknown, unknown>,
     hooks?: CodeMode.ToolCallHooks,
   ) => {
-    const tools: Record<string, Tool.Definition<never> | Record<string, Tool.Definition<never>>> = {}
-    for (const [name, registration] of options.registrations) {
-      const child = definition(name, registration.tool)
+    const tools: CodeModeTools = Object.create(null)
+    for (const [key, registration] of options.registrations) {
+      const child = definition(registration.name, registration.tool)
       const value = Tool.make({
         description: child.description,
         input: child.inputSchema,
         output: child.outputSchema,
-        run: (input) => invoke(name, registration, input),
+        run: (input) => invoke(key, registration, input),
       })
-      if (registration.group === undefined) {
-        const path = registration.name
-        if (Object.hasOwn(tools, path)) throw new TypeError(`Deferred tool namespace conflict: ${path}`)
-        tools[path] = value
-        continue
-      }
-      const path = registration.name
-      const namespace = registration.group
-      const group = tools[namespace]
-      if (group && Tool.isDefinition(group)) throw new TypeError(`Deferred tool namespace conflict: ${namespace}`)
-      if (group) {
-        if (Object.hasOwn(group, path)) throw new TypeError(`Deferred tool namespace conflict: ${namespace}.${path}`)
-        group[path] = value
-        continue
-      }
-      const entries: Record<string, Tool.Definition<never>> = {}
-      entries[path] = value
-      tools[namespace] = entries
+      addTool(tools, registration.path, value)
     }
     return CodeMode.make<typeof tools>({ tools, ...hooks })
   }
@@ -112,15 +99,15 @@ export const create = (options: {
           ),
         )
         const result = yield* runtime(
-          (name, registration, input) =>
+          (key, registration, input) =>
             Effect.gen(function* () {
               const index = yield* Ref.getAndUpdate(callIndex, (index) => index + 1)
-              const current = options.current(name)
+              const current = options.current(key)
               if (!current || current.identity !== registration.identity)
-                return yield* Effect.fail(toolError(`Stale tool call: ${name}`))
+                return yield* Effect.fail(toolError(`Stale tool call: ${registration.path.join(".")}`))
               const output = yield* settle(
                 current.tool,
-                { type: "tool-call", id: context.toolCallID, name, input },
+                { type: "tool-call", id: context.toolCallID, name: registration.name, input },
                 {
                   sessionID: context.sessionID,
                   agent: context.agent,
@@ -163,6 +150,21 @@ export const create = (options: {
   })
 }
 
+function addTool(tools: CodeModeTools, path: readonly string[], value: Tool.Definition<never>) {
+  const [name, ...rest] = path
+  if (name === undefined) return
+  if (rest.length === 0) {
+    if (Object.hasOwn(tools, name)) throw new TypeError(`Code Mode namespace conflict: ${path.join(".")}`)
+    tools[name] = value
+    return
+  }
+  const current = tools[name]
+  if (Tool.isDefinition(current)) throw new TypeError(`Code Mode namespace conflict: ${path.join(".")}`)
+  const child: CodeModeTools = current ?? Object.create(null)
+  tools[name] = child
+  addTool(child, rest, value)
+}
+
 function displayInput(input: unknown): Record<string, unknown> | undefined {
   if (input === null || input === undefined) return
   if (typeof input !== "object" || Array.isArray(input)) return { input }
diff --git a/packages/core/src/location-services.ts b/packages/core/src/location-services.ts
index 661e9795eb..0a506ea4a8 100644
--- a/packages/core/src/location-services.ts
+++ b/packages/core/src/location-services.ts
@@ -2,6 +2,7 @@ import { Effect, Layer, LayerMap } from "effect"
 import { AgentV2 } from "./agent"
 import { AISDK } from "./aisdk"
 import { Catalog } from "./catalog"
+import { CodeModeV2 } from "./code-mode"
 import { CommandV2 } from "./command"
 import { Config } from "./config"
 import { LayerNode } from "./effect/layer-node"
@@ -119,6 +120,7 @@ const locationServiceNodes = [
   MCP.node,
   PermissionV2.node,
   ToolOutputStore.node,
+  CodeModeV2.node,
   ToolRegistry.node,
   ToolRegistry.toolsNode,
   Image.node,
diff --git a/packages/core/src/mcp/guidance.ts b/packages/core/src/mcp/guidance.ts
index 4f2c13b72c..86920561b4 100644
--- a/packages/core/src/mcp/guidance.ts
+++ b/packages/core/src/mcp/guidance.ts
@@ -1,7 +1,7 @@
 export * as McpGuidance from "./guidance"
 
 import { makeLocationNode } from "../effect/app-node"
-import { Flag } from "../flag/flag"
+import { CodeModeV2 } from "../code-mode"
 import { Context, Effect, Layer, Schema } from "effect"
 import { AgentV2 } from "../agent"
 import { PermissionV2 } from "../permission"
@@ -15,10 +15,10 @@ const Summary = Schema.Struct({
 })
 type Summary = typeof Summary.Type
 
-const entries = (servers: ReadonlyArray<Summary>) =>
+const entries = (servers: ReadonlyArray<Summary>, codeMode: boolean) =>
   servers.flatMap((server) => [
     `  <server name="${server.server}">`,
-    ...(Flag.CODEMODE_ENABLED
+    ...(codeMode
       ? [
           `    Use tools from this server through \`execute\` under \`tools[${JSON.stringify(McpTool.group(server.server))}]\`.`,
         ]
@@ -27,10 +27,10 @@ const entries = (servers: ReadonlyArray<Summary>) =>
     "  </server>",
   ])
 
-const render = (servers: ReadonlyArray<Summary>) =>
-  ["<mcp_instructions>", ...entries(servers), "</mcp_instructions>"].join("\n")
+const render = (servers: ReadonlyArray<Summary>, codeMode: boolean) =>
+  ["<mcp_instructions>", ...entries(servers, codeMode), "</mcp_instructions>"].join("\n")
 
-const update = (previous: ReadonlyArray<Summary>, current: ReadonlyArray<Summary>) => {
+const update = (previous: ReadonlyArray<Summary>, current: ReadonlyArray<Summary>, codeMode: boolean) => {
   const diff = Instructions.diffByKey(
     previous,
     current,
@@ -41,12 +41,15 @@ const update = (previous: ReadonlyArray<Summary>, current: ReadonlyArray<Summary
   if (diff.changed.length > 0 || (diff.added.length === 0 && diff.removed.length === 0))
     return [
       "The available MCP server instructions have changed. This list supersedes the previous one.",
-      render(current),
+      render(current, codeMode),
     ].join("\n")
   return [
     ...(diff.added.length === 0
       ? []
-      : ["New MCP server instructions are available in addition to those previously listed:", ...entries(diff.added)]),
+      : [
+          "New MCP server instructions are available in addition to those previously listed:",
+          ...entries(diff.added, codeMode),
+        ]),
     ...(diff.removed.length === 0
       ? []
       : [
@@ -64,13 +67,14 @@ export class Service extends Context.Service<Service, Interface>()("@opencode/v2
 export const layer = Layer.effect(
   Service,
   Effect.gen(function* () {
+    const codeMode = yield* CodeModeV2.Service
     const mcp = yield* MCP.Service
 
     return Service.of({
       load: Effect.fn("McpGuidance.load")(function* (selection) {
         const agent = selection.info
         if (!agent) return Instructions.empty
-        if (Flag.CODEMODE_ENABLED && PermissionV2.evaluate("execute", "*", agent.permissions).effect === "deny")
+        if (codeMode.enabled && PermissionV2.evaluate("execute", "*", agent.permissions).effect === "deny")
           return Instructions.empty
         const [instructions, tools] = yield* Effect.all([mcp.instructions(), mcp.tools()], {
           concurrency: "unbounded",
@@ -80,7 +84,7 @@ export const layer = Layer.effect(
           .filter((item) => {
             const owned = tools.filter((tool) => tool.server === item.server)
             return (
-              (!Flag.CODEMODE_ENABLED && owned.length === 0) ||
+              (!codeMode.enabled && owned.length === 0) ||
               owned.some(
                 (tool) =>
                   PermissionV2.evaluate(McpTool.name(tool.server, tool.name), "*", agent.permissions).effect !== "deny",
@@ -93,8 +97,8 @@ export const layer = Layer.effect(
           key: Instructions.Key.make("core/mcp-guidance"),
           codec: Schema.toCodecJson(Schema.Array(Summary)),
           load: Effect.succeed(visible),
-          baseline: render,
-          update,
+          baseline: (servers) => render(servers, codeMode.enabled),
+          update: (previous, current) => update(previous, current, codeMode.enabled),
           removed: () => "MCP server instructions are no longer available.",
         })
       }),
@@ -102,4 +106,4 @@ export const layer = Layer.effect(
   }),
 )
 
-export const node = makeLocationNode({ service: Service, layer, deps: [MCP.node] })
+export const node = makeLocationNode({ service: Service, layer, deps: [CodeModeV2.node, MCP.node] })
diff --git a/packages/core/src/plugin.ts b/packages/core/src/plugin.ts
index 907920c10e..a57b5f0ac2 100644
--- a/packages/core/src/plugin.ts
+++ b/packages/core/src/plugin.ts
@@ -7,6 +7,7 @@ import { Context, Effect, Exit, Layer, Scope, Semaphore } from "effect"
 import { AgentV2 } from "./agent"
 import { AISDK } from "./aisdk"
 import { Catalog } from "./catalog"
+import { CodeModeV2 } from "./code-mode"
 import { CommandV2 } from "./command"
 import { EventV2 } from "./event"
 import { Integration } from "./integration"
@@ -124,6 +125,7 @@ export const node = makeLocationNode({
     AgentV2.node,
     AISDK.node,
     Catalog.node,
+    CodeModeV2.node,
     CommandV2.node,
     Integration.node,
     Location.node,
diff --git a/packages/core/src/plugin/host.ts b/packages/core/src/plugin/host.ts
index 01ea0da0d3..e5271d240d 100644
--- a/packages/core/src/plugin/host.ts
+++ b/packages/core/src/plugin/host.ts
@@ -6,6 +6,7 @@ import { Effect, Schema, Stream } from "effect"
 import { AgentV2 } from "../agent"
 import { AISDK } from "../aisdk"
 import { Catalog } from "../catalog"
+import { CodeModeV2 } from "../code-mode"
 import { CommandV2 } from "../command"
 import { Credential } from "../credential"
 import { EventV2 } from "../event"
@@ -28,6 +29,7 @@ export const make = Effect.fn("PluginHost.make")(function* (plugin: PluginV2.Int
   const agents = yield* AgentV2.Service
   const aisdk = yield* AISDK.Service
   const catalog = yield* Catalog.Service
+  const codeMode = yield* CodeModeV2.Service
   const commands = yield* CommandV2.Service
   const events = yield* EventV2.Service
   const integration = yield* Integration.Service
@@ -158,6 +160,9 @@ export const make = Effect.fn("PluginHost.make")(function* (plugin: PluginV2.Int
           callback(draft)
         }),
     },
+    codemode: {
+      register: codeMode.register,
+    },
     event: {
       subscribe: () => events.subscribe().pipe(Stream.filter(EventManifest.isServer)),
     },
diff --git a/packages/core/src/tool/mcp.ts b/packages/core/src/tool/mcp.ts
index 7503e4e94e..44f7b3de04 100644
--- a/packages/core/src/tool/mcp.ts
+++ b/packages/core/src/tool/mcp.ts
@@ -5,7 +5,7 @@ import { McpEvent } from "@opencode-ai/schema/mcp-event"
 import { Effect, Exit, type JsonSchema, Layer, Scope, Semaphore, Stream } from "effect"
 import { makeLocationNode } from "../effect/app-node"
 import { EventV2 } from "../event"
-import { Flag } from "../flag/flag"
+import { CodeModeV2 } from "../code-mode"
 import { MCP } from "../mcp"
 import { PermissionV2 } from "../permission"
 import { Tool } from "./tool"
@@ -21,6 +21,7 @@ export const name = (server: string, tool: string) => `${group(server)}_${tool.r
 export const layer = Layer.effectDiscard(
   Effect.gen(function* () {
     const mcp = yield* MCP.Service
+    const codeMode = yield* CodeModeV2.Service
     const tools = yield* Tools.Service
     const events = yield* EventV2.Service
     const permission = yield* PermissionV2.Service
@@ -105,13 +106,14 @@ export const layer = Layer.effectDiscard(
           groups.set(tool.server, group)
         }
         const next = yield* Scope.fork(scope)
-        yield* Effect.forEach(
-          groups,
-          ([group, record]) => tools.register(record, { group, deferred: Flag.CODEMODE_ENABLED }),
-          {
-            discard: true,
-          },
-        ).pipe(Scope.provide(next), Effect.orDie)
+        const register = codeMode.enabled
+          ? codeMode.register((draft) => {
+              for (const [server, record] of groups)
+                for (const [tool, value] of Object.entries(record))
+                  draft.add([group(server), tool.replace(/[^a-zA-Z0-9_-]/g, "_")], value)
+            })
+          : Effect.forEach(groups, ([group, record]) => tools.register(record, { group }), { discard: true })
+        yield* register.pipe(Scope.provide(next), Effect.orDie)
         if (current) yield* Scope.close(current, Exit.void)
         current = next
       }),
@@ -128,5 +130,5 @@ export const layer = Layer.effectDiscard(
 export const node = makeLocationNode({
   name: "mcp-tools",
   layer,
-  deps: [ToolRegistry.toolsNode, MCP.node, EventV2.node, PermissionV2.node],
+  deps: [CodeModeV2.node, ToolRegistry.toolsNode, MCP.node, EventV2.node, PermissionV2.node],
 })
diff --git a/packages/core/src/tool/registry.ts b/packages/core/src/tool/registry.ts
index 0275cd8d87..dd04de1150 100644
--- a/packages/core/src/tool/registry.ts
+++ b/packages/core/src/tool/registry.ts
@@ -3,13 +3,12 @@ export * as ToolRegistry from "./registry"
 import { ToolOutput, type ToolCall, type ToolDefinition, type ToolResultValue } from "@opencode-ai/llm"
 import { Context, Effect, Layer, Scope } from "effect"
 import type { AgentV2 } from "../agent"
-import { Flag } from "../flag/flag"
+import { CodeModeV2 } from "../code-mode"
 import { PermissionV2 } from "../permission"
 import { SessionMessage } from "../session/message"
 import { SessionSchema } from "../session/schema"
 import { ToolOutputStore } from "../tool-output-store"
 import { Wildcard } from "../util/wildcard"
-import { ExecuteTool } from "./execute"
 import { definition, permission, registrationEntries, RegistrationError, settle, type AnyTool } from "./tool"
 import { Tools } from "./tools"
 import { ToolHooks } from "./hooks"
@@ -55,14 +54,12 @@ export class Service extends Context.Service<Service, Interface>()("@opencode/v2
 const registryLayer = Layer.effect(
   Service,
   Effect.gen(function* () {
+    const codeMode = yield* CodeModeV2.Service
     const resources = yield* ToolOutputStore.Service
     const toolHooks = yield* ToolHooks.Service
     type Registration = {
       readonly identity: object
       readonly tool: AnyTool
-      readonly name: string
-      readonly group?: string
-      readonly deferred: boolean
     }
     const local = new Map<string, Array<{ readonly token: object; readonly registration: Registration }>>()
 
@@ -150,7 +147,7 @@ const registryLayer = Layer.effect(
       register: Effect.fn("ToolRegistry.register")(function* (tools, options) {
         const entries = registrationEntries(tools, options?.group)
         if (entries.length === 0) return
-        const reserved = options?.deferred ? undefined : entries.find((entry) => entry.key === "execute")
+        const reserved = entries.find((entry) => entry.key === "execute")
         if (reserved)
           return yield* Effect.fail(
             new RegistrationError({ name: reserved.key, message: 'Tool name "execute" is reserved for CodeMode' }),
@@ -166,9 +163,6 @@ const registryLayer = Layer.effect(
                   registration: {
                     identity: {},
                     tool: entry.tool,
-                    name: entry.name,
-                    group: entry.group,
-                    deferred: options?.deferred ?? false,
                   },
                 },
               ])
@@ -195,30 +189,18 @@ const registryLayer = Layer.effect(
         const usePatch = input.model.provider.toLowerCase() === "openai" || input.model.id.toLowerCase().includes("gpt")
         for (const [name, registration] of registrations) {
           const wrongEditTool = name === "apply_patch" ? !usePatch : (name === "edit" || name === "write") && usePatch
-          if (
-            wrongEditTool ||
-            (registration.deferred && !Flag.CODEMODE_ENABLED) ||
-            whollyDisabled(permission(registration.tool, name), input.permissions ?? [])
-          )
+          if (wrongEditTool || whollyDisabled(permission(registration.tool, name), input.permissions ?? []))
             registrations.delete(name)
         }
-        const direct = new Map(Array.from(registrations).filter(([, registration]) => !registration.deferred))
-        const deferred = new Map(Array.from(registrations).filter(([, registration]) => registration.deferred))
-        const execute =
-          deferred.size > 0 && !whollyDisabled("execute", input.permissions ?? [])
-            ? ExecuteTool.create({
-                registrations: deferred,
-                current: (name) => local.get(name)?.at(-1)?.registration,
-              })
-            : undefined
+        const execute = yield* codeMode.materialize({ permissions: input.permissions })
         return {
           definitions: [
-            ...Array.from(direct, ([name, registration]) => definition(name, registration.tool)),
+            ...Array.from(registrations, ([name, registration]) => definition(name, registration.tool)),
             ...(execute ? [definition("execute", execute)] : []),
           ],
           settle: (input) => {
             if (input.call.name === "execute" && execute) return settleTool(input, execute)
-            const registration = direct.get(input.call.name)
+            const registration = registrations.get(input.call.name)
             if (registration) return settleWith(input, registration.identity)
             return Effect.succeed({
               result: { type: "error", value: `Unknown tool: ${input.call.name}` },
@@ -244,11 +226,11 @@ function whollyDisabled(action: string, rules: PermissionV2.Ruleset) {
 export const node = makeLocationNode({
   service: Service,
   layer,
-  deps: [ToolOutputStore.node, ToolHooks.node],
+  deps: [CodeModeV2.node, ToolOutputStore.node, ToolHooks.node],
 })
 
 export const toolsNode = makeLocationNode({
   service: Tools.Service,
   layer,
-  deps: [ToolOutputStore.node, ToolHooks.node],
+  deps: [CodeModeV2.node, ToolOutputStore.node, ToolHooks.node],
 })
diff --git a/packages/core/test/plugin.test.ts b/packages/core/test/plugin.test.ts
index 5d87102b7d..e1934ff7b0 100644
--- a/packages/core/test/plugin.test.ts
+++ b/packages/core/test/plugin.test.ts
@@ -191,7 +191,7 @@ describe("PluginV2", () => {
     }),
   )
 
-  it.effect("groups tool names and defers registrations from direct exposure", () =>
+  it.effect("registers direct and Code Mode tools through separate plugin domains", () =>
     Effect.gen(function* () {
       const plugins = yield* PluginV2.Service
       const registry = yield* ToolRegistry.Service
@@ -205,13 +205,17 @@ describe("PluginV2", () => {
       const plugin = define({
         id: "grouped-tools",
         effect: (ctx) =>
-          ctx.tool
-            .transform((draft) => {
-              draft.add("plain", tool("Plain"))
-              draft.add("look/up", tool("Lookup"), { group: "context 7" })
-              draft.add("search", tool("Search"), { group: "context 7", deferred: true })
-            })
-            .pipe(Effect.orDie),
+          Effect.gen(function* () {
+            yield* ctx.tool
+              .transform((draft) => {
+                draft.add("plain", tool("Plain"))
+                draft.add("look/up", tool("Lookup"), { group: "context 7" })
+              })
+              .pipe(Effect.orDie)
+            yield* ctx.codemode
+              .register((draft) => draft.add(["context_7", "search"], tool("Search")))
+              .pipe(Effect.orDie)
+          }),
       })
 
       yield* plugins.activate([{ plugin }])
@@ -221,6 +225,9 @@ describe("PluginV2", () => {
         "context_7_look_up",
         "execute",
       ])
+
+      yield* plugins.activate([])
+      expect((yield* registry.materialize({ model: testModel })).definitions).toEqual([])
     }),
   )
 
diff --git a/packages/core/test/plugin/fixture.ts b/packages/core/test/plugin/fixture.ts
index ea6e65bb64..0e00f2b84b 100644
--- a/packages/core/test/plugin/fixture.ts
+++ b/packages/core/test/plugin/fixture.ts
@@ -1,6 +1,7 @@
 import { AgentV2 } from "@opencode-ai/core/agent"
 import { AISDK } from "@opencode-ai/core/aisdk"
 import { Catalog } from "@opencode-ai/core/catalog"
+import { CodeModeV2 } from "@opencode-ai/core/code-mode"
 import { CommandV2 } from "@opencode-ai/core/command"
 import { Credential } from "@opencode-ai/core/credential"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
@@ -43,6 +44,7 @@ export const PluginTestLayer = AppNodeBuilder.build(
     AgentV2.node,
     AISDK.node,
     Catalog.node,
+    CodeModeV2.node,
     CommandV2.node,
     Integration.node,
     PluginRuntime.node,
diff --git a/packages/core/test/plugin/host.ts b/packages/core/test/plugin/host.ts
index 2aa8789548..0883151d37 100644
--- a/packages/core/test/plugin/host.ts
+++ b/packages/core/test/plugin/host.ts
@@ -39,6 +39,9 @@ export function host(overrides: Overrides = {}): PluginContext {
       transform: () => Effect.die("unused command.transform"),
       reload: () => Effect.die("unused command.reload"),
     },
+    codemode: overrides.codemode ?? {
+      register: () => Effect.die("unused codemode.register"),
+    },
     event: overrides.event ?? {
       subscribe: () => Stream.empty,
     },
diff --git a/packages/core/test/session-runner-tool-registry.test.ts b/packages/core/test/session-runner-tool-registry.test.ts
index 3c03094b5e..051c370c73 100644
--- a/packages/core/test/session-runner-tool-registry.test.ts
+++ b/packages/core/test/session-runner-tool-registry.test.ts
@@ -1,8 +1,10 @@
 import { describe, expect } from "bun:test"
 import { Tool } from "@opencode-ai/core/tool/tool"
 import { AgentV2 } from "@opencode-ai/core/agent"
+import { CodeModeV2 } from "@opencode-ai/core/code-mode"
 import type { PermissionV2 } from "@opencode-ai/core/permission"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
+import { LayerNode } from "@opencode-ai/core/effect/layer-node"
 import { SessionV2 } from "@opencode-ai/core/session"
 import { SessionMessage } from "@opencode-ai/core/session/message"
 import { ToolOutputStore } from "@opencode-ai/core/tool-output-store"
@@ -28,7 +30,9 @@ const outputStore = Layer.mock(ToolOutputStore.Service, {
     )
   },
 })
-const registryLayer = AppNodeBuilder.build(ToolRegistry.node, [[ToolOutputStore.node, outputStore]])
+const registryLayer = AppNodeBuilder.build(LayerNode.group([ToolRegistry.node, CodeModeV2.node]), [
+  [ToolOutputStore.node, outputStore],
+])
 const it = testEffect(registryLayer)
 const identity = {
   agent: AgentV2.ID.make("build"),
@@ -53,6 +57,30 @@ const make = (permission?: string) => {
 }
 
 describe("ToolRegistry", () => {
+  it.effect("materializes nested Code Mode sources as execute", () =>
+    Effect.gen(function* () {
+      const codeMode = yield* CodeModeV2.Service
+      const service = yield* ToolRegistry.Service
+      yield* codeMode.register((draft) => draft.add(["opencode", "v2", "echo"], make()))
+
+      const definitions = yield* toolDefinitions(service)
+      expect(definitions.map((tool) => tool.name)).toEqual(["execute"])
+      expect(definitions[0]?.description).toContain("tools.opencode.v2.echo")
+      expect(
+        yield* executeTool(service, {
+          sessionID,
+          ...identity,
+          call: {
+            type: "tool-call",
+            id: "call-code-mode",
+            name: "execute",
+            input: { code: 'return await tools.opencode.v2.echo({ text: "hello" })' },
+          },
+        }),
+      ).toEqual({ type: "text", value: '{\n  "text": "hello"\n}' })
+    }),
+  )
+
   it.effect("filters disabled tools with edit aliases and ordered wildcard precedence", () =>
     Effect.gen(function* () {
       const service = yield* ToolRegistry.Service
diff --git a/packages/plugin/src/v2/effect/code-mode.ts b/packages/plugin/src/v2/effect/code-mode.ts
new file mode 100644
index 0000000000..9cc9bb6216
--- /dev/null
+++ b/packages/plugin/src/v2/effect/code-mode.ts
@@ -0,0 +1,12 @@
+import type { Effect, Scope } from "effect"
+import type { AnyTool, RegistrationError } from "./tool.js"
+
+export type Path = readonly [string, ...string[]]
+
+export interface Draft {
+  add(path: Path, tool: AnyTool): void
+}
+
+export interface Domain {
+  readonly register: (source: (draft: Draft) => void) => Effect.Effect<void, RegistrationError, Scope.Scope>
+}
diff --git a/packages/plugin/src/v2/effect/context.ts b/packages/plugin/src/v2/effect/context.ts
index 219dc16581..5d19c23d3f 100644
--- a/packages/plugin/src/v2/effect/context.ts
+++ b/packages/plugin/src/v2/effect/context.ts
@@ -3,6 +3,7 @@ import type { AgentHooks } from "./agent.js"
 import type { AISDKHooks } from "./aisdk.js"
 import type { CatalogHooks } from "./catalog.js"
 import type { CommandHooks } from "./command.js"
+import type { Domain } from "./code-mode.js"
 import type { EventHooks } from "./event.js"
 import type { IntegrationHooks } from "./integration.js"
 import type { PluginDomain } from "./plugin.js"
@@ -17,6 +18,7 @@ export interface PluginContext {
   readonly aisdk: AISDKHooks
   readonly catalog: CatalogHooks
   readonly command: CommandHooks
+  readonly codemode: Domain
   readonly event: EventHooks
   readonly integration: IntegrationHooks
   readonly plugin: PluginDomain
diff --git a/packages/plugin/src/v2/effect/index.ts b/packages/plugin/src/v2/effect/index.ts
index 1332ce2752..c90d2d4f78 100644
--- a/packages/plugin/src/v2/effect/index.ts
+++ b/packages/plugin/src/v2/effect/index.ts
@@ -5,6 +5,7 @@ export type { AgentDraft, AgentHooks } from "./agent.js"
 export type { AISDKHooks } from "./aisdk.js"
 export type { CatalogDraft, CatalogHooks, CatalogProviderRecord } from "./catalog.js"
 export type { CommandDraft, CommandHooks } from "./command.js"
+export * as CodeMode from "./code-mode.js"
 export type { EventHooks } from "./event.js"
 export type { IntegrationDraft, IntegrationHooks, IntegrationMethodRegistration } from "./integration.js"
 export type { ReferenceDraft, ReferenceHooks } from "./reference.js"
diff --git a/packages/plugin/src/v2/effect/tool.ts b/packages/plugin/src/v2/effect/tool.ts
index bb5931af16..9d9e695945 100644
--- a/packages/plugin/src/v2/effect/tool.ts
+++ b/packages/plugin/src/v2/effect/tool.ts
@@ -246,7 +246,6 @@ export interface ToolExecuteAfterEvent {
 
 export interface RegisterOptions {
   readonly group?: string
-  readonly deferred?: boolean
 }
 
 export interface ToolDraft {
diff --git a/packages/plugin/test/contract-identity.test.ts b/packages/plugin/test/contract-identity.test.ts
index 00efbd2aff..84e9c4d488 100644
--- a/packages/plugin/test/contract-identity.test.ts
+++ b/packages/plugin/test/contract-identity.test.ts
@@ -27,6 +27,7 @@ test.each([
   expect(entrypoint.Skill).toBe(Skill)
   expect(Object.keys(entrypoint).sort()).toEqual([
     "Agent",
+    ...(name === "effect" ? ["CodeMode"] : []),
     "Command",
     "Connection",
     "Credential",