diff --git a/packages/server/src/server/agent/agent-prompt.test.ts b/packages/server/src/server/agent/agent-prompt.test.ts
index 84632dda1..a88a8b9a3 100644
--- a/packages/server/src/server/agent/agent-prompt.test.ts
+++ b/packages/server/src/server/agent/agent-prompt.test.ts
@@ -11,6 +11,97 @@ import {
 } from "./agent-prompt.js";
 import type { AgentManagerEvent, ManagedAgent } from "./agent-manager.js";
 
+interface FinishNotificationScenarioOptions {
+  childLastAssistantMessage?: string | null;
+}
+
+interface FinishNotificationScenario {
+  startWatchingChild(): void;
+  finishChildAndReadParentPrompt(): Promise<string>;
+}
+
+function createFinishNotificationScenario(
+  options?: FinishNotificationScenarioOptions,
+): FinishNotificationScenario {
+  let subscriber: ((event: AgentManagerEvent) => void) | null = null;
+  let resolveParentPrompt: ((prompt: string) => void) | null = null;
+
+  const childAgent: ManagedAgent = Object.create(null);
+  Reflect.set(childAgent, "id", "child-agent");
+  Reflect.set(childAgent, "lifecycle", "idle");
+  Reflect.set(childAgent, "config", { title: "Child Agent" });
+
+  const callerAgent: ManagedAgent = Object.create(null);
+  Reflect.set(callerAgent, "id", "caller-agent");
+  Reflect.set(callerAgent, "lifecycle", "idle");
+  Reflect.set(callerAgent, "config", { title: "Caller Agent" });
+
+  const agentManager: AgentManager = Object.create(AgentManager.prototype);
+  Reflect.set(agentManager, "getAgent", (agentId: string) => {
+    if (agentId === "child-agent") {
+      return childAgent;
+    }
+    if (agentId === "caller-agent") {
+      return callerAgent;
+    }
+    return null;
+  });
+  Reflect.set(agentManager, "subscribe", (callback: (event: AgentManagerEvent) => void) => {
+    subscriber = callback;
+    return () => {
+      subscriber = null;
+    };
+  });
+  Reflect.set(agentManager, "getLastAssistantMessage", async () => {
+    return options?.childLastAssistantMessage ?? null;
+  });
+  Reflect.set(agentManager, "tryRunOutOfBand", () => false);
+  Reflect.set(agentManager, "hasInFlightRun", () => false);
+  Reflect.set(agentManager, "streamAgent", (_agentId: string, prompt: string) => {
+    resolveParentPrompt?.(prompt);
+    return (async function* noop() {})();
+  });
+
+  const agentStorage: AgentStorage = Object.create(AgentStorage.prototype);
+  Reflect.set(agentStorage, "get", async (agentId: string) => {
+    if (agentId === "child-agent") {
+      return { title: "Child Agent" };
+    }
+    return null;
+  });
+
+  return {
+    startWatchingChild() {
+      setupFinishNotification({
+        agentManager,
+        agentStorage,
+        childAgentId: "child-agent",
+        callerAgentId: "caller-agent",
+        logger: createTestLogger(),
+      });
+    },
+    async finishChildAndReadParentPrompt() {
+      const parentPrompt = new Promise<string>((resolve) => {
+        resolveParentPrompt = resolve;
+      });
+
+      childAgent.lifecycle = "running";
+      subscriber?.({
+        type: "agent_state",
+        agent: childAgent,
+      });
+
+      childAgent.lifecycle = "idle";
+      subscriber?.({
+        type: "agent_state",
+        agent: childAgent,
+      });
+
+      return parentPrompt;
+    },
+  };
+}
+
 test("isSystemInjectedEnvelope matches the envelope formatSystemNotificationPrompt produces", () => {
   expect(isSystemInjectedEnvelope(formatSystemNotificationPrompt("child finished"))).toBe(true);
   expect(isSystemInjectedEnvelope("hello world")).toBe(false);
@@ -55,6 +146,21 @@ test("sendPromptToAgent forwards the client message id as run options", async ()
   });
 });
 
+test("finish notifications tell the parent the child's last assistant message", async () => {
+  const scenario = createFinishNotificationScenario({
+    childLastAssistantMessage: "Implemented the cleanup and all checks pass.",
+  });
+
+  scenario.startWatchingChild();
+  const parentPrompt = await scenario.finishChildAndReadParentPrompt();
+
+  expect(parentPrompt).toEqual(
+    formatSystemNotificationPrompt(
+      "Agent child-agent (Child Agent) finished.\n\n<agent-response>\nImplemented the cleanup and all checks pass.\n</agent-response>",
+    ),
+  );
+});
+
 it("does not notify archived callers", async () => {
   let subscriber: ((event: AgentManagerEvent) => void) | null = null;
 
diff --git a/packages/server/src/server/agent/agent-prompt.ts b/packages/server/src/server/agent/agent-prompt.ts
index 6331a9d7c..e7c7d9973 100644
--- a/packages/server/src/server/agent/agent-prompt.ts
+++ b/packages/server/src/server/agent/agent-prompt.ts
@@ -252,6 +252,22 @@ export interface SetupFinishNotificationParams {
   logger: Logger;
 }
 
+interface FinishNotificationBodyInput {
+  childAgentId: string;
+  title: string;
+  reason: "finished" | "errored" | "needs permission";
+  lastAssistantMessage: string | null;
+}
+
+function formatFinishNotificationBody(params: FinishNotificationBodyInput): string {
+  const statusLine = `Agent ${params.childAgentId} (${params.title}) ${params.reason}.`;
+  const lastAssistantMessage = params.lastAssistantMessage?.trim();
+  if (!lastAssistantMessage) {
+    return statusLine;
+  }
+  return `${statusLine}\n\n<agent-response>\n${lastAssistantMessage}\n</agent-response>`;
+}
+
 export function setupFinishNotification(params: SetupFinishNotificationParams): void {
   const { agentManager, agentStorage, childAgentId, callerAgentId, logger } = params;
   let hasSeenRunning = false;
@@ -265,9 +281,20 @@ export function setupFinishNotification(params: SetupFinishNotificationParams):
     fired = true;
     unsubscribe?.();
 
+    const callerRecord = await agentStorage.get(callerAgentId);
+    if (callerRecord?.archivedAt) {
+      return;
+    }
+
     const record = await agentStorage.get(childAgentId);
     const title = record?.title ?? childAgentId;
-    const body = `Agent ${childAgentId} (${title}) ${reason}.`;
+    const lastAssistantMessage = await agentManager.getLastAssistantMessage(childAgentId);
+    const body = formatFinishNotificationBody({
+      childAgentId,
+      title,
+      reason,
+      lastAssistantMessage,
+    });
 
     await sendPromptToAgent({
       agentManager,
diff --git a/packages/server/src/server/agent/providers/cursor-acp-agent.test.ts b/packages/server/src/server/agent/providers/cursor-acp-agent.test.ts
index 438743e59..b2da3360c 100644
--- a/packages/server/src/server/agent/providers/cursor-acp-agent.test.ts
+++ b/packages/server/src/server/agent/providers/cursor-acp-agent.test.ts
@@ -1,70 +1,17 @@
-import { afterEach, describe, expect, test, vi } from "vitest";
+import { describe, expect, test, vi } from "vitest";
 
 import type { SpawnedACPProcess, SessionStateResponse } from "./acp-agent.js";
-import { CursorACPAgentClient, parseCursorAgentModelsOutput } from "./cursor-acp-agent.js";
+import { CursorACPAgentClient } from "./cursor-acp-agent.js";
 import { createTestLogger } from "../../../test-utils/test-logger.js";
-import * as spawnUtils from "../../../utils/spawn.js";
 
-afterEach(() => {
-  vi.restoreAllMocks();
-});
-
-describe("parseCursorAgentModelsOutput", () => {
-  test("parses Cursor model list output and marks default model", () => {
-    expect(
-      parseCursorAgentModelsOutput(`
-Available models
-
-auto - Auto
-composer-2-fast - Composer 2 Fast (default)
-gpt-5.5-low - GPT-5.5 1M Low (current)
-
-Tip: use --model <id> (or /model <id> in interactive mode) to switch.
-`),
-    ).toEqual([
-      { provider: "acp", id: "auto", label: "Auto", isDefault: false },
-      {
-        provider: "acp",
-        id: "composer-2-fast",
-        label: "Composer 2 Fast",
-        isDefault: true,
-      },
-      {
-        provider: "acp",
-        id: "gpt-5.5-low",
-        label: "GPT-5.5 1M Low",
-        isDefault: false,
-      },
-    ]);
-  });
-
-  test("falls back to first model as default when Cursor marks none", () => {
-    expect(
-      parseCursorAgentModelsOutput(`
-Available models
-composer-2 - Composer 2
-gpt-5.5-low - GPT-5.5 1M Low
-`),
-    ).toEqual([
-      { provider: "acp", id: "composer-2", label: "Composer 2", isDefault: true },
-      { provider: "acp", id: "gpt-5.5-low", label: "GPT-5.5 1M Low", isDefault: false },
-    ]);
-  });
-});
-
-describe("CursorACPAgentClient model fallback", () => {
+describe("CursorACPAgentClient model discovery", () => {
   class TestCursorACPAgentClient extends CursorACPAgentClient {
-    constructor(options: {
-      command?: [string, ...string[]];
-      env?: Record<string, string>;
-      response: SessionStateResponse;
-    }) {
+    constructor(response: SessionStateResponse) {
       super({
         logger: createTestLogger(),
-        command: options.command ?? ["cursor-agent", "acp"],
-        env: options.env,
+        command: ["cursor-agent", "acp"],
       });
-      this.response = options.response;
+      this.response = response;
     }
 
     private readonly response: SessionStateResponse;
@@ -82,112 +29,42 @@ describe("CursorACPAgentClient model fallback", () => {
     protected override async closeProbe(): Promise<void> {}
   }
 
-  test("uses cursor-agent models when Cursor ACP reports zero models", async () => {
-    const execCommand = vi.spyOn(spawnUtils, "execCommand").mockResolvedValue({
-      stdout: "Available models\ncomposer-2-fast - Composer 2 Fast (default)\n",
-      stderr: "",
-    });
+  test("returns only ACP model ids because Cursor CLI ids cannot select ACP models", async () => {
     const client = new TestCursorACPAgentClient({
-      response: { sessionId: "session-1", models: null, configOptions: [] },
-    });
-
-    const models = await client.listModels({ cwd: "/tmp/cursor", force: false });
-
-    expect(models).toEqual([
-      {
-        provider: "acp",
-        id: "composer-2-fast",
-        label: "Composer 2 Fast",
-        isDefault: true,
+      sessionId: "session-1",
+      models: {
+        currentModelId: "gpt-5.4[context=272k,reasoning=medium,fast=false]",
+        availableModels: [
+          {
+            modelId: "gpt-5.4[context=272k,reasoning=medium,fast=false]",
+            name: "gpt-5.4",
+            description: null,
+          },
+        ],
       },
-    ]);
-    expect(execCommand).toHaveBeenCalledWith(
-      "cursor-agent",
-      ["models"],
-      expect.objectContaining({ timeout: expect.any(Number) }),
-    );
-  });
-
-  test("uses cursor-agent models for absolute cursor-agent commands", async () => {
-    const execCommand = vi.spyOn(spawnUtils, "execCommand").mockResolvedValue({
-      stdout: "Available models\ncomposer-2-fast - Composer 2 Fast (default)\n",
-      stderr: "",
-    });
-    const client = new TestCursorACPAgentClient({
-      command: ["/opt/cursor/bin/cursor-agent", "acp"],
-      response: { sessionId: "session-1", models: null, configOptions: [] },
+      configOptions: [],
     });
 
     await expect(client.listModels({ cwd: "/tmp/cursor", force: false })).resolves.toEqual([
       {
         provider: "acp",
-        id: "composer-2-fast",
-        label: "Composer 2 Fast",
-        isDefault: true,
-      },
-    ]);
-    expect(execCommand).toHaveBeenCalledWith(
-      "/opt/cursor/bin/cursor-agent",
-      ["models"],
-      expect.objectContaining({ timeout: expect.any(Number) }),
-    );
-  });
-
-  test("passes Cursor provider env to cursor-agent models fallback", async () => {
-    const execCommand = vi.spyOn(spawnUtils, "execCommand").mockResolvedValue({
-      stdout: "Available models\ncomposer-2-fast - Composer 2 Fast (default)\n",
-      stderr: "",
-    });
-    const env = { CURSOR_AGENT_LOG: "debug" };
-    const client = new TestCursorACPAgentClient({
-      env,
-      response: { sessionId: "session-1", models: null, configOptions: [] },
-    });
-
-    await client.listModels({ cwd: "/tmp/cursor", force: false });
-
-    expect(execCommand).toHaveBeenCalledWith(
-      "cursor-agent",
-      ["models"],
-      expect.objectContaining({ envOverlay: env }),
-    );
-  });
-
-  test("does not run fallback when ACP returns models", async () => {
-    const execCommand = vi.spyOn(spawnUtils, "execCommand");
-    const client = new TestCursorACPAgentClient({
-      response: {
-        sessionId: "session-1",
-        models: {
-          currentModelId: "acp-model",
-          availableModels: [{ modelId: "acp-model", name: "ACP Model", description: null }],
-        },
-        configOptions: [],
-      },
-    });
-
-    await expect(client.listModels({ cwd: "/tmp/cursor", force: false })).resolves.toEqual([
-      {
-        provider: "acp",
-        id: "acp-model",
-        label: "ACP Model",
+        id: "gpt-5.4[context=272k,reasoning=medium,fast=false]",
+        label: "gpt-5.4",
         description: undefined,
         isDefault: true,
         thinkingOptions: undefined,
         defaultThinkingOptionId: undefined,
       },
     ]);
-    expect(execCommand).not.toHaveBeenCalled();
   });
 
-  test("does not run fallback when command is not cursor-agent", async () => {
-    const execCommand = vi.spyOn(spawnUtils, "execCommand");
+  test("does not fall back to cursor-agent models when ACP reports zero models", async () => {
     const client = new TestCursorACPAgentClient({
-      command: ["other-agent", "acp"],
-      response: { sessionId: "session-1", models: null, configOptions: [] },
+      sessionId: "session-1",
+      models: null,
+      configOptions: [],
     });
 
     await expect(client.listModels({ cwd: "/tmp/cursor", force: false })).resolves.toEqual([]);
-    expect(execCommand).not.toHaveBeenCalled();
   });
 });
diff --git a/packages/server/src/server/agent/providers/cursor-acp-agent.ts b/packages/server/src/server/agent/providers/cursor-acp-agent.ts
index 47943a62d..b72ca5f5f 100644
--- a/packages/server/src/server/agent/providers/cursor-acp-agent.ts
+++ b/packages/server/src/server/agent/providers/cursor-acp-agent.ts
@@ -1,8 +1,5 @@
-import { basename } from "node:path";
 import type { Logger } from "pino";
 
-import type { AgentModelDefinition, ListModelsOptions } from "../agent-sdk-types.js";
-import * as spawnUtils from "../../../utils/spawn.js";
 import { GenericACPAgentClient } from "./generic-acp-agent.js";
 
 interface CursorACPAgentClientOptions {
@@ -14,14 +11,9 @@ interface CursorACPAgentClientOptions {
   providerParams?: unknown;
 }
 
-const CURSOR_MODELS_TIMEOUT_MS = 10_000;
 const CURSOR_INITIAL_COMMANDS_WAIT_TIMEOUT_MS = 10_000;
-const CURSOR_MODEL_MARKER_PATTERN = /\s+\((?:default|current)\)$/;
 
 export class CursorACPAgentClient extends GenericACPAgentClient {
-  private readonly cursorCommand: [string, ...string[]];
-  private readonly env?: Record<string, string>;
-
   constructor(options: CursorACPAgentClientOptions) {
     super({
       logger: options.logger,
@@ -34,104 +26,5 @@ export class CursorACPAgentClient extends GenericACPAgentClient {
       waitForInitialCommands: true,
       initialCommandsWaitTimeoutMs: CURSOR_INITIAL_COMMANDS_WAIT_TIMEOUT_MS,
     });
-    this.cursorCommand = options.command;
-    this.env = options.env;
-  }
-
-  override async listModels(options: ListModelsOptions): Promise<AgentModelDefinition[]> {
-    const acpModels = await super.listModels(options);
-    if (acpModels.length > 0) {
-      return acpModels;
-    }
-
-    if (this.canUseCursorModelsFallback()) {
-      return this.listCursorModelsFallback(acpModels);
-    }
-
-    return acpModels;
-  }
-
-  private canUseCursorModelsFallback(): boolean {
-    return basename(this.cursorCommand[0]) === "cursor-agent";
-  }
-
-  private async listCursorModelsFallback(
-    acpModels: AgentModelDefinition[],
-  ): Promise<AgentModelDefinition[]> {
-    try {
-      const { stdout } = await spawnUtils.execCommand(this.cursorCommand[0], ["models"], {
-        envOverlay: this.env,
-        timeout: CURSOR_MODELS_TIMEOUT_MS,
-        maxBuffer: 1024 * 1024,
-      });
-      const fallbackModels = parseCursorAgentModelsOutput(stdout);
-      if (fallbackModels.length === 0) {
-        this.logger.warn(
-          { provider: "cursor" },
-          "Cursor ACP model fallback returned no parseable models",
-        );
-        return acpModels;
-      }
-      return fallbackModels;
-    } catch (error) {
-      this.logger.warn(
-        { err: error, provider: "cursor" },
-        "Failed to list Cursor models via cursor-agent models fallback",
-      );
-      return acpModels;
-    }
   }
 }
-
-interface ParsedCursorModel {
-  provider: "acp";
-  id: string;
-  label: string;
-  marker: "default" | "current" | null;
-}
-
-export function parseCursorAgentModelsOutput(output: string): AgentModelDefinition[] {
-  const parsed = output
-    .split(/\r?\n/)
-    .map((line) => line.trim())
-    .filter((line) => line && line !== "Available models" && !line.startsWith("Tip:"))
-    .map((line) => {
-      const separatorIndex = line.indexOf(" - ");
-      if (separatorIndex <= 0) {
-        return null;
-      }
-
-      const id = line.slice(0, separatorIndex).trim();
-      const rawLabel = line.slice(separatorIndex + 3).trim();
-      if (!id || !rawLabel) {
-        return null;
-      }
-
-      let marker: "default" | "current" | null = null;
-      if (rawLabel.endsWith(" (default)")) {
-        marker = "default";
-      } else if (rawLabel.endsWith(" (current)")) {
-        marker = "current";
-      }
-
-      return {
-        provider: "acp",
-        id,
-        label: rawLabel.replace(CURSOR_MODEL_MARKER_PATTERN, ""),
-        marker,
-      };
-    })
-    .filter((model): model is ParsedCursorModel => model !== null);
-
-  const defaultModelId =
-    parsed.find((model) => model.marker === "default")?.id ??
-    parsed.find((model) => model.marker === "current")?.id ??
-    parsed[0]?.id;
-
-  return parsed.map((model) => ({
-    provider: model.provider,
-    id: model.id,
-    label: model.label,
-    isDefault: model.id === defaultModelId,
-  }));
-}