diff --git a/packages/cli/src/cli.ts b/packages/cli/src/cli.ts
index 928b32c9e..e7e726203 100644
--- a/packages/cli/src/cli.ts
+++ b/packages/cli/src/cli.ts
@@ -16,6 +16,7 @@ import { runSendCommand } from './commands/agent/send.js'
 import { runInspectCommand } from './commands/agent/inspect.js'
 import { runWaitCommand } from './commands/agent/wait.js'
 import { runAttachCommand } from './commands/agent/attach.js'
+import { runUpdateCommand } from './commands/agent/update.js'
 import { withOutput } from './output/index.js'
 
 const VERSION = '0.1.0'
@@ -125,6 +126,21 @@ export function createCli(): Command {
     .option('--host <host>', 'Daemon host:port (default: localhost:6767)')
     .action(withOutput(runWaitCommand))
 
+  program
+    .command('update')
+    .description('Update an agent (alias for "paseo agent update")')
+    .argument('<id>', 'Agent ID (or prefix)')
+    .option('--name <name>', "Update the agent's display name")
+    .option(
+      '--label <label>',
+      'Add/set label(s) on the agent (can be used multiple times or comma-separated)',
+      collectMultiple,
+      []
+    )
+    .option('--json', 'Output in JSON format')
+    .option('--host <host>', 'Daemon host:port (default: localhost:6767)')
+    .action(withOutput(runUpdateCommand))
+
   // Top-level local daemon shortcuts
   program.addCommand(daemonStartCommand())
 
diff --git a/packages/cli/src/commands/agent/index.ts b/packages/cli/src/commands/agent/index.ts
index 1f0e2a51c..a24555d1d 100644
--- a/packages/cli/src/commands/agent/index.ts
+++ b/packages/cli/src/commands/agent/index.ts
@@ -9,6 +9,7 @@ import { runSendCommand } from './send.js'
 import { runInspectCommand } from './inspect.js'
 import { runWaitCommand } from './wait.js'
 import { runAttachCommand } from './attach.js'
+import { runUpdateCommand } from './update.js'
 import { withOutput } from '../../output/index.js'
 
 export function createAgentCommand(): Command {
@@ -120,5 +121,20 @@ export function createAgentCommand(): Command {
     .option('--host <host>', 'Daemon host:port (default: localhost:6767)')
     .action(withOutput(runArchiveCommand))
 
+  agent
+    .command('update')
+    .description("Update an agent's metadata")
+    .argument('<id>', 'Agent ID (or prefix)')
+    .option('--name <name>', "Update the agent's display name")
+    .option(
+      '--label <label>',
+      'Add/set label(s) on the agent (can be used multiple times or comma-separated)',
+      collectMultiple,
+      []
+    )
+    .option('--json', 'Output in JSON format')
+    .option('--host <host>', 'Daemon host:port (default: localhost:6767)')
+    .action(withOutput(runUpdateCommand))
+
   return agent
 }
diff --git a/packages/cli/src/commands/agent/update.ts b/packages/cli/src/commands/agent/update.ts
new file mode 100644
index 000000000..19c9a2d6f
--- /dev/null
+++ b/packages/cli/src/commands/agent/update.ts
@@ -0,0 +1,177 @@
+import type { Command } from 'commander'
+import { connectToDaemon, getDaemonHost } from '../../utils/client.js'
+import type { CommandOptions, SingleResult, OutputSchema, CommandError } from '../../output/index.js'
+
+/** Result type for agent update command */
+export interface AgentUpdateResult {
+  agentId: string
+  name: string | null
+  labels: string
+}
+
+/** Schema for update command output */
+export const updateSchema: OutputSchema<AgentUpdateResult> = {
+  idField: 'agentId',
+  columns: [
+    { header: 'AGENT ID', field: 'agentId' },
+    { header: 'NAME', field: 'name' },
+    { header: 'LABELS', field: 'labels' },
+  ],
+}
+
+export interface AgentUpdateOptions extends CommandOptions {
+  name?: string
+  label?: string[]
+  host?: string
+}
+
+export type AgentUpdateCommandResult = SingleResult<AgentUpdateResult>
+
+function parseLabelOptions(labels: string[] | undefined): Record<string, string> {
+  const parsed: Record<string, string> = {}
+  if (!labels) {
+    return parsed
+  }
+
+  for (const rawLabel of labels) {
+    for (const segment of rawLabel.split(',')) {
+      const label = segment.trim()
+      if (!label) {
+        continue
+      }
+
+      const eqIndex = label.indexOf('=')
+      if (eqIndex === -1) {
+        const error: CommandError = {
+          code: 'INVALID_LABEL',
+          message: `Invalid label format: ${label}`,
+          details: 'Labels must be in key=value format',
+        }
+        throw error
+      }
+
+      const key = label.slice(0, eqIndex).trim()
+      const value = label.slice(eqIndex + 1)
+      if (!key) {
+        const error: CommandError = {
+          code: 'INVALID_LABEL',
+          message: `Invalid label format: ${label}`,
+          details: 'Labels must include a non-empty key in key=value format',
+        }
+        throw error
+      }
+
+      parsed[key] = value
+    }
+  }
+
+  return parsed
+}
+
+function formatLabels(labels: Record<string, string>): string {
+  const entries = Object.entries(labels)
+  if (entries.length === 0) {
+    return '-'
+  }
+  return entries.map(([key, value]) => `${key}=${value}`).join(',')
+}
+
+export async function runUpdateCommand(
+  agentIdArg: string,
+  options: AgentUpdateOptions,
+  _command: Command
+): Promise<AgentUpdateCommandResult> {
+  const host = getDaemonHost({ host: options.host as string | undefined })
+
+  // Validate arguments
+  if (!agentIdArg || agentIdArg.trim().length === 0) {
+    const error: CommandError = {
+      code: 'MISSING_AGENT_ID',
+      message: 'Agent ID is required',
+      details: 'Usage: paseo agent update <id> [--name <name>] [--label <key=value>]',
+    }
+    throw error
+  }
+
+  const name = options.name?.trim()
+  if (options.name !== undefined && !name) {
+    const error: CommandError = {
+      code: 'INVALID_NAME',
+      message: 'Name cannot be empty',
+      details: 'Use --name <name> with a non-empty value',
+    }
+    throw error
+  }
+
+  const labels = parseLabelOptions(options.label)
+  if (!name && Object.keys(labels).length === 0) {
+    const error: CommandError = {
+      code: 'NO_CHANGES_PROVIDED',
+      message: 'Nothing to update',
+      details: 'Provide at least one of: --name <name>, --label <key=value>',
+    }
+    throw error
+  }
+
+  let client
+  try {
+    client = await connectToDaemon({ host: options.host as string | undefined })
+  } catch (err) {
+    const message = err instanceof Error ? err.message : String(err)
+    const error: CommandError = {
+      code: 'DAEMON_NOT_RUNNING',
+      message: `Cannot connect to daemon at ${host}: ${message}`,
+      details: 'Start the daemon with: paseo daemon start',
+    }
+    throw error
+  }
+
+  try {
+    const agent = await client.fetchAgent(agentIdArg)
+    if (!agent) {
+      const error: CommandError = {
+        code: 'AGENT_NOT_FOUND',
+        message: `Agent not found: ${agentIdArg}`,
+        details: 'Use "paseo ls" to list available agents',
+      }
+      throw error
+    }
+    const agentId = agent.id
+
+    await client.updateAgent(agentId, {
+      ...(name ? { name } : {}),
+      ...(Object.keys(labels).length > 0 ? { labels } : {}),
+    })
+
+    const updated = await client.fetchAgent(agentId)
+    if (!updated) {
+      throw new Error(`Agent not found after update: ${agentId}`)
+    }
+
+    await client.close()
+
+    return {
+      type: 'single',
+      data: {
+        agentId,
+        name: updated.title,
+        labels: formatLabels(updated.labels),
+      },
+      schema: updateSchema,
+    }
+  } catch (err) {
+    await client.close().catch(() => {})
+
+    // Re-throw CommandError as-is
+    if (err && typeof err === 'object' && 'code' in err) {
+      throw err
+    }
+
+    const message = err instanceof Error ? err.message : String(err)
+    const error: CommandError = {
+      code: 'UPDATE_FAILED',
+      message: `Failed to update agent: ${message}`,
+    }
+    throw error
+  }
+}
diff --git a/packages/cli/tests/16-agent-update.test.ts b/packages/cli/tests/16-agent-update.test.ts
new file mode 100644
index 000000000..b84331ef4
--- /dev/null
+++ b/packages/cli/tests/16-agent-update.test.ts
@@ -0,0 +1,132 @@
+#!/usr/bin/env npx tsx
+
+/**
+ * Phase 16: Agent Update Command Tests
+ *
+ * Tests the agent update command for metadata updates.
+ * Since daemon may not be running, we test:
+ * - Help and argument parsing
+ * - Validation for required update fields
+ * - Graceful daemon connection errors
+ * - Top-level alias support (`paseo update`)
+ */
+
+import assert from 'node:assert'
+import { $ } from 'zx'
+import { mkdtemp, rm } from 'fs/promises'
+import { tmpdir } from 'os'
+import { join } from 'path'
+
+$.verbose = false
+
+console.log('=== Agent Update Command Tests ===\n')
+
+// Get random port that's definitely not in use (never 6767)
+const port = 10000 + Math.floor(Math.random() * 50000)
+const paseoHome = await mkdtemp(join(tmpdir(), 'paseo-test-home-'))
+
+try {
+  // Test 1: agent update --help shows options
+  {
+    console.log('Test 1: agent update --help shows options')
+    const result = await $`npx paseo agent update --help`.nothrow()
+    assert.strictEqual(result.exitCode, 0, 'agent update --help should exit 0')
+    assert(result.stdout.includes('--name'), 'help should mention --name flag')
+    assert(result.stdout.includes('--label'), 'help should mention --label flag')
+    assert(result.stdout.includes('--host'), 'help should mention --host option')
+    assert(result.stdout.includes('<id>'), 'help should mention required id argument')
+    console.log('✓ agent update --help shows options\n')
+  }
+
+  // Test 2: agent update requires ID argument
+  {
+    console.log('Test 2: agent update requires ID argument')
+    const result =
+      await $`PASEO_HOST=localhost:${port} PASEO_HOME=${paseoHome} npx paseo agent update --name "New Name"`.nothrow()
+    assert.notStrictEqual(result.exitCode, 0, 'should fail without id')
+    const output = result.stdout + result.stderr
+    const hasError =
+      output.toLowerCase().includes('missing') ||
+      output.toLowerCase().includes('required') ||
+      output.toLowerCase().includes('argument') ||
+      output.toLowerCase().includes('id')
+    assert(hasError, 'error should mention missing argument')
+    console.log('✓ agent update requires ID argument\n')
+  }
+
+  // Test 3: agent update requires at least one update field
+  {
+    console.log('Test 3: agent update requires update field')
+    const result =
+      await $`PASEO_HOST=localhost:${port} PASEO_HOME=${paseoHome} npx paseo agent update abc123`.nothrow()
+    assert.notStrictEqual(result.exitCode, 0, 'should fail without --name/--label')
+    const output = result.stdout + result.stderr
+    const hasError =
+      output.toLowerCase().includes('nothing to update') ||
+      output.toLowerCase().includes('name') ||
+      output.toLowerCase().includes('label')
+    assert(hasError, 'error should mention missing update fields')
+    console.log('✓ agent update requires update field\n')
+  }
+
+  // Test 4: agent update handles daemon not running
+  {
+    console.log('Test 4: agent update handles daemon not running')
+    const result =
+      await $`PASEO_HOST=localhost:${port} PASEO_HOME=${paseoHome} npx paseo agent update abc123 --name "Renamed Agent"`.nothrow()
+    assert.notStrictEqual(result.exitCode, 0, 'should fail when daemon not running')
+    const output = result.stdout + result.stderr
+    const hasError =
+      output.toLowerCase().includes('daemon') ||
+      output.toLowerCase().includes('connect') ||
+      output.toLowerCase().includes('cannot')
+    assert(hasError, 'error should mention connection issue')
+    console.log('✓ agent update handles daemon not running\n')
+  }
+
+  // Test 5: agent update accepts multiple/comma-separated labels
+  {
+    console.log('Test 5: agent update accepts multi-label syntax')
+    const result =
+      await $`PASEO_HOST=localhost:${port} PASEO_HOME=${paseoHome} npx paseo agent update abc123 --label ui=true,area=frontend --label priority=high`.nothrow()
+    const output = result.stdout + result.stderr
+    assert(!output.includes('unknown option'), 'should accept --label flag')
+    assert(!output.includes('error: option'), 'should not have option parsing error')
+    console.log('✓ agent update accepts multi-label syntax\n')
+  }
+
+  // Test 6: agent --help shows update subcommand
+  {
+    console.log('Test 6: agent --help shows update subcommand')
+    const result = await $`npx paseo agent --help`.nothrow()
+    assert.strictEqual(result.exitCode, 0, 'agent --help should exit 0')
+    assert(result.stdout.includes('update'), 'help should mention update subcommand')
+    console.log('✓ agent --help shows update subcommand\n')
+  }
+
+  // Test 7: top-level update alias --help works
+  {
+    console.log('Test 7: top-level update --help works')
+    const result = await $`npx paseo update --help`.nothrow()
+    assert.strictEqual(result.exitCode, 0, 'update --help should exit 0')
+    assert(result.stdout.includes('--name'), 'help should mention --name flag')
+    assert(result.stdout.includes('--label'), 'help should mention --label flag')
+    console.log('✓ top-level update --help works\n')
+  }
+
+  // Test 8: top-level update alias accepts flags
+  {
+    console.log('Test 8: top-level update alias accepts flags')
+    const result =
+      await $`PASEO_HOST=localhost:${port} PASEO_HOME=${paseoHome} npx paseo update abc123 --name "Alias Name" --host localhost:${port}`.nothrow()
+    const output = result.stdout + result.stderr
+    assert(!output.includes('unknown option'), 'should accept top-level update flags')
+    assert(!output.includes('error: option'), 'should not have option parsing error')
+    console.log('✓ top-level update alias accepts flags\n')
+  }
+} finally {
+  // Clean up temp directory
+  await rm(paseoHome, { recursive: true, force: true })
+}
+
+console.log('=== All agent update tests passed ===')
diff --git a/packages/server/src/client/daemon-client.ts b/packages/server/src/client/daemon-client.ts
index d9b44ee04..8c5691166 100644
--- a/packages/server/src/client/daemon-client.ts
+++ b/packages/server/src/client/daemon-client.ts
@@ -1074,6 +1074,40 @@ export class DaemonClient {
     return { archivedAt: result.archivedAt };
   }
 
+  async updateAgent(
+    agentId: string,
+    updates: { name?: string; labels?: Record<string, string> }
+  ): Promise<void> {
+    const requestId = this.createRequestId();
+    const message = SessionInboundMessageSchema.parse({
+      type: "update_agent_request",
+      agentId,
+      ...(updates.name !== undefined ? { name: updates.name } : {}),
+      ...(updates.labels && Object.keys(updates.labels).length > 0
+        ? { labels: updates.labels }
+        : {}),
+      requestId,
+    });
+    const payload = await this.sendRequest({
+      requestId,
+      message,
+      timeout: 10000,
+      options: { skipQueue: true },
+      select: (msg) => {
+        if (msg.type !== "update_agent_response") {
+          return null;
+        }
+        if (msg.payload.requestId !== requestId) {
+          return null;
+        }
+        return msg.payload;
+      },
+    });
+    if (!payload.accepted) {
+      throw new Error(payload.error ?? "updateAgent rejected");
+    }
+  }
+
   async resumeAgent(
     handle: AgentPersistenceHandle,
     overrides?: Partial<AgentSessionConfig>
diff --git a/packages/server/src/server/agent/agent-manager.ts b/packages/server/src/server/agent/agent-manager.ts
index abf7a8425..9235faec6 100644
--- a/packages/server/src/server/agent/agent-manager.ts
+++ b/packages/server/src/server/agent/agent-manager.ts
@@ -527,6 +527,16 @@ export class AgentManager {
     this.emitState(agent);
   }
 
+  async setLabels(
+    agentId: string,
+    labels: Record<string, string>
+  ): Promise<void> {
+    const agent = this.requireAgent(agentId);
+    agent.labels = { ...agent.labels, ...labels };
+    await this.persistSnapshot(agent);
+    this.emitState(agent);
+  }
+
   notifyAgentState(agentId: string): void {
     const agent = this.agents.get(agentId);
     if (!agent || agent.internal) {
diff --git a/packages/server/src/server/session.ts b/packages/server/src/server/session.ts
index 4203be4bf..5cd214840 100644
--- a/packages/server/src/server/session.ts
+++ b/packages/server/src/server/session.ts
@@ -1125,6 +1125,15 @@ export class Session {
           await this.handleArchiveAgentRequest(msg.agentId, msg.requestId);
           break;
 
+        case "update_agent_request":
+          await this.handleUpdateAgentRequest(
+            msg.agentId,
+            msg.name,
+            msg.labels,
+            msg.requestId
+          );
+          break;
+
         case "set_voice_mode":
           await this.handleSetVoiceMode(msg.enabled, msg.agentId, msg.requestId);
           break;
@@ -1506,6 +1515,88 @@ export class Session {
     });
   }
 
+  private async handleUpdateAgentRequest(
+    agentId: string,
+    name: string | undefined,
+    labels: Record<string, string> | undefined,
+    requestId: string
+  ): Promise<void> {
+    this.sessionLogger.info(
+      { agentId, requestId, hasName: typeof name === "string", labelCount: labels ? Object.keys(labels).length : 0 },
+      "session: update_agent_request"
+    );
+
+    const normalizedName = name?.trim();
+    const normalizedLabels =
+      labels && Object.keys(labels).length > 0 ? labels : undefined;
+
+    if (!normalizedName && !normalizedLabels) {
+      this.emit({
+        type: "update_agent_response",
+        payload: {
+          requestId,
+          agentId,
+          accepted: false,
+          error: "Nothing to update (provide name and/or labels)",
+        },
+      });
+      return;
+    }
+
+    try {
+      const liveAgent = this.agentManager.getAgent(agentId);
+      if (liveAgent) {
+        if (normalizedName) {
+          await this.agentManager.setTitle(agentId, normalizedName);
+        }
+        if (normalizedLabels) {
+          await this.agentManager.setLabels(agentId, normalizedLabels);
+        }
+      } else {
+        const existing = await this.agentStorage.get(agentId);
+        if (!existing) {
+          throw new Error(`Agent not found: ${agentId}`);
+        }
+
+        await this.agentStorage.upsert({
+          ...existing,
+          ...(normalizedName ? { title: normalizedName } : {}),
+          ...(normalizedLabels
+            ? { labels: { ...existing.labels, ...normalizedLabels } }
+            : {}),
+        });
+      }
+
+      this.emit({
+        type: "update_agent_response",
+        payload: { requestId, agentId, accepted: true, error: null },
+      });
+    } catch (error: any) {
+      this.sessionLogger.error(
+        { err: error, agentId, requestId },
+        "session: update_agent_request error"
+      );
+      this.emit({
+        type: "activity_log",
+        payload: {
+          id: uuidv4(),
+          timestamp: new Date(),
+          type: "error",
+          content: `Failed to update agent: ${error.message}`,
+        },
+      });
+      this.emit({
+        type: "update_agent_response",
+        payload: {
+          requestId,
+          agentId,
+          accepted: false,
+          error: error?.message ? String(error.message) : "Failed to update agent",
+        },
+      });
+    }
+  }
+
   /**
    * Handle voice mode toggle
    */
diff --git a/packages/server/src/shared/messages.ts b/packages/server/src/shared/messages.ts
index 25b5f2284..ac8eddb09 100644
--- a/packages/server/src/shared/messages.ts
+++ b/packages/server/src/shared/messages.ts
@@ -422,6 +422,14 @@ export const ArchiveAgentRequestMessageSchema = z.object({
   requestId: z.string(),
 });
 
+export const UpdateAgentRequestMessageSchema = z.object({
+  type: z.literal("update_agent_request"),
+  agentId: z.string(),
+  name: z.string().optional(),
+  labels: z.record(z.string()).optional(),
+  requestId: z.string(),
+});
+
 export const SetVoiceModeMessageSchema = z.object({
   type: z.literal("set_voice_mode"),
   enabled: z.boolean(),
@@ -660,6 +668,16 @@ export const SetAgentThinkingResponseMessageSchema = z.object({
   }),
 });
 
+export const UpdateAgentResponseMessageSchema = z.object({
+  type: z.literal("update_agent_response"),
+  payload: z.object({
+    requestId: z.string(),
+    agentId: z.string(),
+    accepted: z.boolean(),
+    error: z.string().nullable(),
+  }),
+});
+
 export const SetVoiceModeResponseMessageSchema = z.object({
   type: z.literal("set_voice_mode_response"),
   payload: z.object({
@@ -971,6 +989,7 @@ export const SessionInboundMessageSchema = z.discriminatedUnion("type", [
   UnsubscribeAgentUpdatesMessageSchema,
   DeleteAgentRequestMessageSchema,
   ArchiveAgentRequestMessageSchema,
+  UpdateAgentRequestMessageSchema,
   SetVoiceModeMessageSchema,
   SendAgentMessageRequestSchema,
   WaitForFinishRequestSchema,
@@ -1809,6 +1828,7 @@ export const SessionOutboundMessageSchema = z.discriminatedUnion("type", [
   SetAgentModeResponseMessageSchema,
   SetAgentModelResponseMessageSchema,
   SetAgentThinkingResponseMessageSchema,
+  UpdateAgentResponseMessageSchema,
   WaitForFinishResponseMessageSchema,
   AgentPermissionRequestMessageSchema,
   AgentPermissionResolvedMessageSchema,
@@ -1878,6 +1898,7 @@ export type SendAgentMessageResponseMessage = z.infer<
 export type SetVoiceModeResponseMessage = z.infer<
   typeof SetVoiceModeResponseMessageSchema
 >;
+export type UpdateAgentResponseMessage = z.infer<typeof UpdateAgentResponseMessageSchema>;
 export type WaitForFinishResponseMessage = z.infer<
   typeof WaitForFinishResponseMessageSchema
 >;
@@ -1917,6 +1938,7 @@ export type SpeechModelsDownloadRequestMessage = z.infer<
 >;
 export type ResumeAgentRequestMessage = z.infer<typeof ResumeAgentRequestMessageSchema>;
 export type DeleteAgentRequestMessage = z.infer<typeof DeleteAgentRequestMessageSchema>;
+export type UpdateAgentRequestMessage = z.infer<typeof UpdateAgentRequestMessageSchema>;
 export type InitializeAgentRequestMessage = z.infer<typeof InitializeAgentRequestMessageSchema>;
 export type SetAgentModeRequestMessage = z.infer<typeof SetAgentModeRequestMessageSchema>;
 export type SetAgentModelRequestMessage = z.infer<typeof SetAgentModelRequestMessageSchema>;