diff --git a/backend/apps/agents/apps_mcp_server.py b/backend/apps/agents/apps_mcp_server.py
index f1914e6a..e112f734 100644
--- a/backend/apps/agents/apps_mcp_server.py
+++ b/backend/apps/agents/apps_mcp_server.py
@@ -94,16 +94,16 @@ def handle_tool_call(tool_name: str, arguments: dict) -> dict:
         })
         if "error" in result:
             return {"content": [{"type": "text", "text": f"Error: {result['error']}"}], "isError": True}
+        path = result.get("path")
+        # Point at SKILL.md instead of inlining the ~6.5k-token reference: it's written to the workspace at seed time, so a one-time Read keeps it out of the transcript (where an inline copy would rot for the rest of the session). Read it BEFORE building.
         lines = [
             f"App '{name}' created and its live preview card is now on the user's dashboard.",
-            f"- workspace: {result.get('path')}",
+            f"- workspace: {path}",
             f"- output_id: {result.get('output_id')}",
             "",
-            "Build it by writing files under the workspace path; the preview hot-reloads on save.",
+            f"NEXT: read {path}/SKILL.md now — it's the full App Builder reference (stack, layout, rules); follow it.",
+            "Then build by writing files under the workspace path; the preview hot-reloads on save.",
             "Housekeeping: write meta.json (name/description) first; `bash restart.sh` restarts the runtime; `.openswarm/terminal.log` is the live terminal (check it before declaring done).",
-            "The full App Builder reference follows — FOLLOW IT (it also lives at SKILL.md in the workspace):",
-            "",
-            str(result.get("skill") or ""),
         ]
         return {"content": [{"type": "text", "text": "\n".join(lines)}]}
 
diff --git a/backend/apps/outputs/outputs.py b/backend/apps/outputs/outputs.py
index 8b2791d6..62dfd17c 100644
--- a/backend/apps/outputs/outputs.py
+++ b/backend/apps/outputs/outputs.py
@@ -274,11 +274,11 @@ async def agent_create_app(body: AgentCreateAppRequest):
         })
     except Exception:
         logger.exception("agent-create output_upserted broadcast failed")
+    # The reference isn't returned here: it's written to <folder>/SKILL.md at seed time and the agent reads it on demand, keeping the ~6.5k-token blob out of both this response and the agent transcript.
     return {
         "ok": True,
         "output_id": output_id,
         "path": os.path.abspath(folder),
-        "skill": load_app_builder_skill(),
     }
 
 
diff --git a/backend/tests/test_agent_create_app.py b/backend/tests/test_agent_create_app.py
index 67ccfd71..e2e8aece 100644
--- a/backend/tests/test_agent_create_app.py
+++ b/backend/tests/test_agent_create_app.py
@@ -34,7 +34,11 @@ async def test_agent_create_registers_named_output_and_broadcasts(tmp_path, monk
     ))
     assert res["ok"] is True
     assert os.path.isfile(os.path.join(res["path"], "run.sh"))
-    assert "App Builder" in res["skill"] or len(res["skill"]) > 500
+    # The reference is NOT inlined in the response (context-rot fix) — it's on disk as SKILL.md for the agent to read on demand.
+    assert "skill" not in res
+    skill_path = os.path.join(res["path"], "SKILL.md")
+    assert os.path.isfile(skill_path)
+    assert len(open(skill_path, encoding="utf-8").read()) > 500
 
     output = load_output(res["output_id"])
     assert output.name == "Pomodoro Timer"