diff --git a/packages/coding-agent/src/core/system-prompt.ts b/packages/coding-agent/src/core/system-prompt.ts
index 3675e4133..a88b41b31 100644
--- a/packages/coding-agent/src/core/system-prompt.ts
+++ b/packages/coding-agent/src/core/system-prompt.ts
@@ -153,11 +153,12 @@ Pi documentation (read only when the user asks about pi itself, its SDK, extensi
 
 	// Append project context files
 	if (contextFiles.length > 0) {
-		prompt += "\n\n# Project Context\n\n";
+		prompt += "\n\n<project_context>\n\n";
 		prompt += "Project-specific instructions and guidelines:\n\n";
 		for (const { path: filePath, content } of contextFiles) {
-			prompt += `## ${filePath}\n\n${content}\n\n`;
+			prompt += `<project_instructions path="${filePath}">\n${content}\n</project_instructions>\n\n`;
 		}
+		prompt += "</project_context>\n";
 	}
 
 	// Append skills section (only if read tool is available)