diff --git a/open-sse/handlers/chatCore.ts b/open-sse/handlers/chatCore.ts
index dd989fe90d..438a52c000 100644
--- a/open-sse/handlers/chatCore.ts
+++ b/open-sse/handlers/chatCore.ts
@@ -90,6 +90,8 @@ import {
 import { resolveStreamFlag, stripMarkdownCodeFence } from "../utils/aiSdkCompat.ts";
 import { generateRequestId } from "@/shared/utils/requestId";
 import { normalizePayloadForLog } from "@/lib/logPayloads";
+import { injectMemory, shouldInjectMemory } from "@/lib/memory/injection";
+import { retrieveMemories } from "@/lib/memory/retrieval";
 
 export function shouldUseNativeCodexPassthrough({
   provider,
@@ -680,6 +682,26 @@ export async function handleChatCore({
     });
   }
 
+  if (apiKeyInfo?.id && shouldInjectMemory(body as Parameters<typeof shouldInjectMemory>[0])) {
+    try {
+      const memories = await retrieveMemories(apiKeyInfo.id);
+      if (memories.length > 0) {
+        const injected = injectMemory(
+          body as Parameters<typeof injectMemory>[0],
+          memories,
+          provider
+        );
+        body = injected as typeof body;
+        log?.debug?.("MEMORY", `Injected ${memories.length} memories for key=${apiKeyInfo.id}`);
+      }
+    } catch (memErr) {
+      log?.debug?.(
+        "MEMORY",
+        `Memory injection skipped: ${memErr instanceof Error ? memErr.message : String(memErr)}`
+      );
+    }
+  }
+
   // Translate request (pass reqLogger for intermediate logging)
   let translatedBody = body;
   const isClaudePassthrough = sourceFormat === FORMATS.CLAUDE && targetFormat === FORMATS.CLAUDE;
diff --git a/open-sse/mcp-server/server.ts b/open-sse/mcp-server/server.ts
index c5c80444c5..9a1d003261 100644
--- a/open-sse/mcp-server/server.ts
+++ b/open-sse/mcp-server/server.ts
@@ -56,6 +56,8 @@ import {
   handleGetSessionSnapshot,
   handleSyncPricing,
 } from "./tools/advancedTools.ts";
+import { memoryTools } from "./tools/memoryTools.ts";
+import { skillTools } from "./tools/skillTools.ts";
 import { normalizeQuotaResponse } from "../../src/shared/contracts/quota.ts";
 
 // ============ Configuration ============
@@ -761,6 +763,48 @@ export function createMcpServer(): McpServer {
     )
   );
 
+  // ── Memory Tools ──────────────────────────────
+  Object.values(memoryTools).forEach((toolDef) => {
+    server.registerTool(
+      toolDef.name,
+      {
+        description: toolDef.description,
+        inputSchema: toolDef.inputSchema as any,
+      },
+      withScopeEnforcement(toolDef.name, async (args) => {
+        try {
+          const parsedArgs = toolDef.inputSchema.parse(args ?? {});
+          const result = await toolDef.handler(parsedArgs as any);
+          return { content: [{ type: "text" as const, text: JSON.stringify(result, null, 2) }] };
+        } catch (err) {
+          const msg = err instanceof Error ? err.message : String(err);
+          return { content: [{ type: "text" as const, text: `Error: ${msg}` }], isError: true };
+        }
+      })
+    );
+  });
+
+  // ── Skill Tools ──────────────────────────────
+  Object.values(skillTools).forEach((toolDef) => {
+    server.registerTool(
+      toolDef.name,
+      {
+        description: toolDef.description,
+        inputSchema: toolDef.inputSchema as any,
+      },
+      withScopeEnforcement(toolDef.name, async (args) => {
+        try {
+          const parsedArgs = toolDef.inputSchema.parse(args ?? {});
+          const result = await toolDef.handler(parsedArgs as any);
+          return { content: [{ type: "text" as const, text: JSON.stringify(result, null, 2) }] };
+        } catch (err) {
+          const msg = err instanceof Error ? err.message : String(err);
+          return { content: [{ type: "text" as const, text: `Error: ${msg}` }], isError: true };
+        }
+      })
+    );
+  });
+
   return server;
 }
 
diff --git a/open-sse/mcp-server/tools/memoryTools.ts b/open-sse/mcp-server/tools/memoryTools.ts
new file mode 100644
index 0000000000..f4dc703e92
--- /dev/null
+++ b/open-sse/mcp-server/tools/memoryTools.ts
@@ -0,0 +1,118 @@
+import { z } from "zod";
+import { retrieveMemories } from "@/lib/memory/retrieval";
+import { createMemory, deleteMemory, listMemories } from "@/lib/memory/store";
+import { MemoryType } from "@/lib/memory/types";
+
+export const MemorySearchSchema = z.object({
+  apiKeyId: z.string(),
+  query: z.string().optional(),
+  type: z.enum(["factual", "episodic", "procedural", "semantic"]).optional(),
+  maxTokens: z.number().int().positive().max(8000).optional(),
+  limit: z.number().int().positive().max(100).optional(),
+});
+
+export const MemoryAddSchema = z.object({
+  apiKeyId: z.string(),
+  sessionId: z.string().optional(),
+  type: z.enum(["factual", "episodic", "procedural", "semantic"]),
+  key: z.string().min(1),
+  content: z.string().min(1),
+  metadata: z.record(z.string(), z.unknown()).optional(),
+});
+
+export const MemoryClearSchema = z.object({
+  apiKeyId: z.string(),
+  type: z.enum(["factual", "episodic", "procedural", "semantic"]).optional(),
+  olderThan: z.string().optional(),
+});
+
+export const memoryTools = {
+  omniroute_memory_search: {
+    name: "omniroute_memory_search",
+    description: "Search memories by query, type, or API key with token budget enforcement",
+    inputSchema: MemorySearchSchema,
+    handler: async (args: z.infer<typeof MemorySearchSchema>) => {
+      const config = {
+        enabled: true,
+        maxTokens: args.maxTokens || 2000,
+        retrievalStrategy: "exact" as const,
+        autoSummarize: false,
+        persistAcrossModels: false,
+        retentionDays: 30,
+        scope: "apiKey" as const,
+      };
+
+      const memories = await retrieveMemories(args.apiKeyId, config);
+
+      const filtered = args.type ? memories.filter((m) => m.type === args.type) : memories;
+
+      const limited = args.limit ? filtered.slice(0, args.limit) : filtered;
+
+      return {
+        success: true,
+        data: {
+          memories: limited,
+          count: limited.length,
+          totalTokens: limited.reduce((sum, m) => sum + Math.ceil(m.content.length / 4), 0),
+        },
+      };
+    },
+  },
+
+  omniroute_memory_add: {
+    name: "omniroute_memory_add",
+    description: "Add a new memory entry",
+    inputSchema: MemoryAddSchema,
+    handler: async (args: z.infer<typeof MemoryAddSchema>) => {
+      const memory = await createMemory({
+        apiKeyId: args.apiKeyId,
+        sessionId: args.sessionId || null,
+        type: args.type as MemoryType,
+        key: args.key,
+        content: args.content,
+        metadata: args.metadata || {},
+        expiresAt: null,
+      });
+
+      return {
+        success: true,
+        data: {
+          memory,
+          message: "Memory created successfully",
+        },
+      };
+    },
+  },
+
+  omniroute_memory_clear: {
+    name: "omniroute_memory_clear",
+    description: "Clear memories for an API key, optionally filtered by type or age",
+    inputSchema: MemoryClearSchema,
+    handler: async (args: z.infer<typeof MemoryClearSchema>) => {
+      const memories = await listMemories({
+        apiKeyId: args.apiKeyId,
+        type: args.type as MemoryType | undefined,
+      });
+
+      let toDelete = memories;
+      if (args.olderThan) {
+        const cutoff = new Date(args.olderThan);
+        toDelete = memories.filter((m) => new Date(m.createdAt) < cutoff);
+      }
+
+      let deletedCount = 0;
+      for (const memory of toDelete) {
+        await deleteMemory(memory.id);
+        deletedCount++;
+      }
+
+      return {
+        success: true,
+        data: {
+          deletedCount,
+          message: `Cleared ${deletedCount} memories`,
+        },
+      };
+    },
+  },
+};
diff --git a/open-sse/mcp-server/tools/skillTools.ts b/open-sse/mcp-server/tools/skillTools.ts
new file mode 100644
index 0000000000..3433b646ad
--- /dev/null
+++ b/open-sse/mcp-server/tools/skillTools.ts
@@ -0,0 +1,120 @@
+import { z } from "zod";
+import { skillRegistry } from "@/lib/skills/registry";
+import { skillExecutor } from "@/lib/skills/executor";
+
+export const SkillListSchema = z.object({
+  apiKeyId: z.string().optional(),
+  name: z.string().optional(),
+  enabled: z.boolean().optional(),
+});
+
+export const SkillEnableSchema = z.object({
+  apiKeyId: z.string(),
+  skillId: z.string(),
+  enabled: z.boolean(),
+});
+
+export const SkillExecuteSchema = z.object({
+  apiKeyId: z.string(),
+  skillName: z.string(),
+  input: z.record(z.string(), z.unknown()),
+  sessionId: z.string().optional(),
+});
+
+export const skillTools = {
+  omniroute_skills_list: {
+    name: "omniroute_skills_list",
+    description: "List all registered skills with optional filtering by API key or name",
+    inputSchema: SkillListSchema,
+    handler: async (args: z.infer<typeof SkillListSchema>) => {
+      await skillRegistry.loadFromDatabase(args.apiKeyId);
+      const skills = skillRegistry.list(args.apiKeyId);
+
+      let filtered = skills;
+      if (args.name) {
+        filtered = filtered.filter((s) => s.name.includes(args.name!));
+      }
+      if (args.enabled !== undefined) {
+        filtered = filtered.filter((s) => s.enabled === args.enabled);
+      }
+
+      return {
+        skills: filtered.map((s) => ({
+          id: s.id,
+          name: s.name,
+          version: s.version,
+          description: s.description,
+          enabled: s.enabled,
+          createdAt: s.createdAt.toISOString(),
+        })),
+        count: filtered.length,
+      };
+    },
+  },
+
+  omniroute_skills_enable: {
+    name: "omniroute_skills_enable",
+    description: "Enable or disable a specific skill by ID",
+    inputSchema: SkillEnableSchema,
+    handler: async (args: z.infer<typeof SkillEnableSchema>) => {
+      const skill = skillRegistry.getSkill(args.skillId, args.apiKeyId);
+      if (!skill) {
+        throw new Error(`Skill not found: ${args.skillId}`);
+      }
+
+      await skillRegistry.register({
+        ...skill,
+        enabled: args.enabled,
+        apiKeyId: args.apiKeyId,
+      });
+
+      return { success: true, skillId: args.skillId, enabled: args.enabled };
+    },
+  },
+
+  omniroute_skills_execute: {
+    name: "omniroute_skills_execute",
+    description: "Execute a skill with provided input and return the result",
+    inputSchema: SkillExecuteSchema,
+    handler: async (args: z.infer<typeof SkillExecuteSchema>) => {
+      const execution = await skillExecutor.execute(args.skillName, args.input, {
+        apiKeyId: args.apiKeyId,
+        sessionId: args.sessionId,
+      });
+
+      return {
+        id: execution.id,
+        skillId: execution.skillId,
+        status: execution.status,
+        output: execution.output,
+        error: execution.errorMessage,
+        duration: execution.durationMs,
+        createdAt: execution.createdAt.toISOString(),
+      };
+    },
+  },
+
+  omniroute_skills_executions: {
+    name: "omniroute_skills_executions",
+    description: "List recent skill execution history",
+    inputSchema: z.object({
+      apiKeyId: z.string().optional(),
+      limit: z.number().int().positive().max(100).optional(),
+    }),
+    handler: async (args: { apiKeyId?: string; limit?: number }) => {
+      const executions = skillExecutor.listExecutions(args.apiKeyId, args.limit || 50);
+
+      return {
+        executions: executions.map((e) => ({
+          id: e.id,
+          skillId: e.skillId,
+          status: e.status,
+          duration: e.durationMs,
+          error: e.errorMessage,
+          createdAt: e.createdAt.toISOString(),
+        })),
+        count: executions.length,
+      };
+    },
+  },
+};
diff --git a/src/app/(dashboard)/dashboard/memory/page.tsx b/src/app/(dashboard)/dashboard/memory/page.tsx
new file mode 100644
index 0000000000..813b4c2a3a
--- /dev/null
+++ b/src/app/(dashboard)/dashboard/memory/page.tsx
@@ -0,0 +1,197 @@
+"use client";
+
+import { useState, useEffect } from "react";
+import { Card, Badge, Button, Input, Select } from "@/shared/components";
+import { useTranslations } from "next-intl";
+
+interface Memory {
+  id: string;
+  apiKeyId: string;
+  sessionId: string | null;
+  type: "factual" | "episodic" | "procedural" | "semantic";
+  key: string;
+  content: string;
+  metadata: Record<string, unknown>;
+  createdAt: string;
+  updatedAt: string;
+  expiresAt: string | null;
+}
+
+interface MemoryStats {
+  totalEntries: number;
+  tokensUsed: number;
+  hitRate: number;
+}
+
+export default function MemoryPage() {
+  const t = useTranslations("memory");
+  const [memories, setMemories] = useState<Memory[]>([]);
+  const [stats, setStats] = useState<MemoryStats>({
+    totalEntries: 0,
+    tokensUsed: 0,
+    hitRate: 0,
+  });
+  const [filterType, setFilterType] = useState<string>("all");
+  const [searchQuery, setSearchQuery] = useState("");
+  const [isLoading, setIsLoading] = useState(true);
+
+  useEffect(() => {
+    fetchMemories();
+  }, []);
+
+  const fetchMemories = async () => {
+    try {
+      const response = await fetch("/api/memory");
+      if (response.ok) {
+        const data = await response.json();
+        setMemories(data.memories || []);
+        setStats(data.stats || { totalEntries: 0, tokensUsed: 0, hitRate: 0 });
+      }
+    } catch (error) {
+      console.error("Failed to fetch memories:", error);
+    } finally {
+      setIsLoading(false);
+    }
+  };
+
+  const handleDelete = async (id: string) => {
+    try {
+      await fetch(`/api/memory/${id}`, { method: "DELETE" });
+      setMemories(memories.filter((m) => m.id !== id));
+    } catch (error) {
+      console.error("Failed to delete memory:", error);
+    }
+  };
+
+  const handleExport = () => {
+    const dataStr = JSON.stringify(memories, null, 2);
+    const dataBlob = new Blob([dataStr], { type: "application/json" });
+    const url = URL.createObjectURL(dataBlob);
+    const link = document.createElement("a");
+    link.href = url;
+    link.download = `memory-export-${new Date().toISOString()}.json`;
+    link.click();
+  };
+
+  const filteredMemories = memories.filter((memory) => {
+    const matchesType = filterType === "all" || memory.type === filterType;
+    const matchesSearch =
+      searchQuery === "" ||
+      memory.content.toLowerCase().includes(searchQuery.toLowerCase()) ||
+      memory.key.toLowerCase().includes(searchQuery.toLowerCase());
+    return matchesType && matchesSearch;
+  });
+
+  const getTypeColor = (type: string) => {
+    switch (type) {
+      case "factual":
+        return "info";
+      case "episodic":
+        return "success";
+      case "procedural":
+        return "warning";
+      case "semantic":
+        return "error";
+      default:
+        return "default";
+    }
+  };
+
+  if (isLoading) {
+    return (
+      <div className="flex items-center justify-center h-64">
+        <div className="animate-spin rounded-full h-8 w-8 border-b-2 border-gray-900"></div>
+      </div>
+    );
+  }
+
+  return (
+    <div className="space-y-6 p-6">
+      <div className="flex items-center justify-between">
+        <h1 className="text-2xl font-bold">Memory Management</h1>
+        <div className="flex gap-2">
+          <Button variant="outline" onClick={handleExport}>
+            Export
+          </Button>
+          <Button variant="outline">Import</Button>
+          <Button>Add Memory</Button>
+        </div>
+      </div>
+
+      <div className="grid grid-cols-1 md:grid-cols-3 gap-4">
+        <Card>
+          <div className="p-4">
+            <div className="text-sm text-gray-500">Total Entries</div>
+            <div className="text-2xl font-bold">{stats.totalEntries}</div>
+          </div>
+        </Card>
+        <Card>
+          <div className="p-4">
+            <div className="text-sm text-gray-500">Tokens Used</div>
+            <div className="text-2xl font-bold">{stats.tokensUsed.toLocaleString()}</div>
+          </div>
+        </Card>
+        <Card>
+          <div className="p-4">
+            <div className="text-sm text-gray-500">Hit Rate</div>
+            <div className="text-2xl font-bold">{(stats.hitRate * 100).toFixed(1)}%</div>
+          </div>
+        </Card>
+      </div>
+
+      <Card>
+        <div className="p-4">
+          <div className="flex items-center justify-between mb-4">
+            <h2 className="text-lg font-semibold">Memories</h2>
+            <div className="flex gap-2">
+              <Input
+                placeholder="Search memories..."
+                value={searchQuery}
+                onChange={(e) => setSearchQuery(e.target.value)}
+                className="w-64"
+              />
+              <Select value={filterType} onChange={(e) => setFilterType(e.target.value)}>
+                <option value="all">All Types</option>
+                <option value="factual">Factual</option>
+                <option value="episodic">Episodic</option>
+                <option value="procedural">Procedural</option>
+                <option value="semantic">Semantic</option>
+              </Select>
+            </div>
+          </div>
+
+          <div className="overflow-x-auto">
+            <table className="w-full">
+              <thead>
+                <tr className="border-b">
+                  <th className="text-left py-2 px-4">Type</th>
+                  <th className="text-left py-2 px-4">Key</th>
+                  <th className="text-left py-2 px-4">Content</th>
+                  <th className="text-left py-2 px-4">Created</th>
+                  <th className="text-left py-2 px-4">Actions</th>
+                </tr>
+              </thead>
+              <tbody>
+                {filteredMemories.map((memory) => (
+                  <tr key={memory.id} className="border-b">
+                    <td className="py-2 px-4">
+                      <Badge variant={getTypeColor(memory.type) as any}>{memory.type}</Badge>
+                    </td>
+                    <td className="py-2 px-4 font-medium">{memory.key}</td>
+                    <td className="py-2 px-4 max-w-md truncate">{memory.content}</td>
+                    <td className="py-2 px-4">{new Date(memory.createdAt).toLocaleDateString()}</td>
+                    <td className="py-2 px-4">
+                      <Button variant="ghost" size="sm" onClick={() => handleDelete(memory.id)}>
+                        Delete
+                      </Button>
+                    </td>
+                  </tr>
+                ))}
+              </tbody>
+            </table>
+          </div>
+        </div>
+      </Card>
+    </div>
+  );
+}
diff --git a/src/app/(dashboard)/dashboard/settings/components/MemorySkillsTab.tsx b/src/app/(dashboard)/dashboard/settings/components/MemorySkillsTab.tsx
new file mode 100644
index 0000000000..60b218daa6
--- /dev/null
+++ b/src/app/(dashboard)/dashboard/settings/components/MemorySkillsTab.tsx
@@ -0,0 +1,251 @@
+"use client";
+
+import { useState, useEffect } from "react";
+import { Card } from "@/shared/components";
+import { useTranslations } from "next-intl";
+
+interface MemoryConfig {
+  enabled: boolean;
+  maxTokens: number;
+  retentionDays: number;
+  strategy: "recent" | "semantic" | "hybrid";
+  skillsEnabled: boolean;
+}
+
+const STRATEGIES = [
+  { value: "recent", labelKey: "recent", descKey: "recentDesc" },
+  { value: "semantic", labelKey: "semantic", descKey: "semanticDesc" },
+  { value: "hybrid", labelKey: "hybrid", descKey: "hybridDesc" },
+];
+
+export default function MemorySkillsTab() {
+  const [config, setConfig] = useState<MemoryConfig>({
+    enabled: true,
+    maxTokens: 2000,
+    retentionDays: 30,
+    strategy: "hybrid",
+    skillsEnabled: false,
+  });
+  const [loading, setLoading] = useState(true);
+  const [saving, setSaving] = useState(false);
+  const [status, setStatus] = useState("");
+  const t = useTranslations("settings");
+
+  useEffect(() => {
+    fetch("/api/settings/memory")
+      .then((res) => res.json())
+      .then((data) => {
+        setConfig(data);
+        setLoading(false);
+      })
+      .catch(() => setLoading(false));
+  }, []);
+
+  const save = async (updates: Partial<MemoryConfig>) => {
+    const newConfig = { ...config, ...updates };
+    setConfig(newConfig);
+    setSaving(true);
+    setStatus("");
+    try {
+      const res = await fetch("/api/settings/memory", {
+        method: "PUT",
+        headers: { "Content-Type": "application/json" },
+        body: JSON.stringify(newConfig),
+      });
+      if (res.ok) {
+        setStatus("saved");
+        setTimeout(() => setStatus(""), 2000);
+      } else {
+        setStatus("error");
+      }
+    } catch {
+      setStatus("error");
+    } finally {
+      setSaving(false);
+    }
+  };
+
+  if (loading) {
+    return (
+      <Card>
+        <div className="flex items-center gap-3">
+          <div className="p-2 rounded-lg bg-violet-500/10 text-violet-500">
+            <span className="material-symbols-outlined text-[20px]" aria-hidden="true">
+              psychology
+            </span>
+          </div>
+          <div>
+            <h3 className="text-lg font-semibold">{t("memorySkillsTitle")}</h3>
+            <p className="text-sm text-text-muted">{t("memorySkillsDesc")}</p>
+          </div>
+        </div>
+        <div className="mt-4 text-sm text-text-muted">{t("loading")}...</div>
+      </Card>
+    );
+  }
+
+  return (
+    <div className="flex flex-col gap-6">
+      {/* Memory Settings */}
+      <Card>
+        <div className="flex items-center gap-3 mb-5">
+          <div className="p-2 rounded-lg bg-violet-500/10 text-violet-500">
+            <span className="material-symbols-outlined text-[20px]" aria-hidden="true">
+              memory
+            </span>
+          </div>
+          <div>
+            <h3 className="text-lg font-semibold">{t("memoryTitle")}</h3>
+            <p className="text-sm text-text-muted">{t("memoryDesc")}</p>
+          </div>
+          {status === "saved" && (
+            <span className="ml-auto text-xs font-medium text-emerald-500 flex items-center gap-1">
+              <span className="material-symbols-outlined text-[14px]">check_circle</span>{" "}
+              {t("saved")}
+            </span>
+          )}
+        </div>
+
+        {/* Enable toggle */}
+        <div className="flex items-center justify-between p-4 rounded-lg bg-surface/30 border border-border/30 mb-4">
+          <div>
+            <p className="text-sm font-medium">{t("memoryEnabled")}</p>
+            <p className="text-xs text-text-muted mt-0.5">{t("memoryEnabledDesc")}</p>
+          </div>
+          <button
+            onClick={() => save({ enabled: !config.enabled })}
+            disabled={saving}
+            className={`relative w-11 h-6 rounded-full transition-colors ${
+              config.enabled ? "bg-violet-500" : "bg-border"
+            }`}
+            role="switch"
+            aria-checked={config.enabled}
+          >
+            <span
+              className={`absolute top-1 left-1 w-4 h-4 bg-white rounded-full transition-transform ${
+                config.enabled ? "translate-x-5" : "translate-x-0"
+              }`}
+            />
+          </button>
+        </div>
+
+        {/* Memory config fields */}
+        {config.enabled && (
+          <>
+            {/* Max tokens */}
+            <div className="p-4 rounded-lg bg-surface/30 border border-border/30 mb-4">
+              <div className="flex items-center justify-between mb-3">
+                <p className="text-sm font-medium">{t("maxTokens")}</p>
+                <span className="text-sm font-mono tabular-nums text-violet-400">
+                  {config.maxTokens.toLocaleString()} {t("tokens")}
+                </span>
+              </div>
+              <input
+                type="range"
+                min="0"
+                max="16000"
+                step="500"
+                value={config.maxTokens}
+                onChange={(e) => save({ maxTokens: parseInt(e.target.value) })}
+                className="w-full accent-violet-500"
+              />
+              <div className="flex justify-between text-xs text-text-muted mt-1">
+                <span>{t("off")}</span>
+                <span>4K</span>
+                <span>8K</span>
+                <span>16K</span>
+              </div>
+            </div>
+
+            {/* Retention days */}
+            <div className="p-4 rounded-lg bg-surface/30 border border-border/30 mb-4">
+              <div className="flex items-center justify-between mb-3">
+                <p className="text-sm font-medium">{t("retentionDays")}</p>
+                <span className="text-sm font-mono tabular-nums text-violet-400">
+                  {config.retentionDays} {t("days")}
+                </span>
+              </div>
+              <input
+                type="range"
+                min="1"
+                max="90"
+                step="1"
+                value={config.retentionDays}
+                onChange={(e) => save({ retentionDays: parseInt(e.target.value) })}
+                className="w-full accent-violet-500"
+              />
+              <div className="flex justify-between text-xs text-text-muted mt-1">
+                <span>1</span>
+                <span>30</span>
+                <span>60</span>
+                <span>90</span>
+              </div>
+            </div>
+
+            {/* Strategy selector */}
+            <div className="grid grid-cols-3 gap-2">
+              {STRATEGIES.map((s) => (
+                <button
+                  key={s.value}
+                  onClick={() => save({ strategy: s.value as "recent" | "semantic" | "hybrid" })}
+                  disabled={loading || saving}
+                  className={`flex flex-col items-start p-3 rounded-lg border text-left transition-all ${
+                    config.strategy === s.value
+                      ? "border-violet-500/50 bg-violet-500/5 ring-1 ring-violet-500/20"
+                      : "border-border/50 hover:border-border hover:bg-surface/30"
+                  }`}
+                >
+                  <p
+                    className={`text-sm font-medium ${config.strategy === s.value ? "text-violet-400" : ""}`}
+                  >
+                    {t(s.labelKey)}
+                  </p>
+                  <p className="text-xs text-text-muted mt-0.5 leading-relaxed">{t(s.descKey)}</p>
+                </button>
+              ))}
+            </div>
+          </>
+        )}
+      </Card>
+
+      {/* Skills Settings (placeholder) */}
+      <Card>
+        <div className="flex items-center gap-3 mb-5">
+          <div className="p-2 rounded-lg bg-amber-500/10 text-amber-500">
+            <span className="material-symbols-outlined text-[20px]" aria-hidden="true">
+              handyman
+            </span>
+          </div>
+          <div>
+            <h3 className="text-lg font-semibold">{t("skillsTitle")}</h3>
+            <p className="text-sm text-text-muted">{t("skillsDesc")}</p>
+          </div>
+        </div>
+
+        <div className="flex items-center justify-between p-4 rounded-lg bg-surface/30 border border-border/30">
+          <div>
+            <p className="text-sm font-medium">{t("skillsEnabled")}</p>
+            <p className="text-xs text-text-muted mt-0.5">{t("skillsEnabledDesc")}</p>
+          </div>
+          <button
+            onClick={() => save({ skillsEnabled: !config.skillsEnabled })}
+            disabled={saving}
+            className={`relative w-11 h-6 rounded-full transition-colors ${
+              config.skillsEnabled ? "bg-amber-500" : "bg-border"
+            }`}
+            role="switch"
+            aria-checked={config.skillsEnabled}
+          >
+            <span
+              className={`absolute top-1 left-1 w-4 h-4 bg-white rounded-full transition-transform ${
+                config.skillsEnabled ? "translate-x-5" : "translate-x-0"
+              }`}
+            />
+          </button>
+        </div>
+
+        <p className="text-xs text-text-muted mt-3">{t("skillsComingSoon")}</p>
+      </Card>
+    </div>
+  );
+}
diff --git a/src/app/(dashboard)/dashboard/settings/page.tsx b/src/app/(dashboard)/dashboard/settings/page.tsx
index 4da90585ef..640fcea3ea 100644
--- a/src/app/(dashboard)/dashboard/settings/page.tsx
+++ b/src/app/(dashboard)/dashboard/settings/page.tsx
@@ -19,6 +19,7 @@ import BackgroundDegradationTab from "./components/BackgroundDegradationTab";
 
 import CacheStatsCard from "./components/CacheStatsCard";
 import CacheSettingsTab from "./components/CacheSettingsTab";
+import MemorySkillsTab from "./components/MemorySkillsTab";
 import ResilienceTab from "./components/ResilienceTab";
 
 const tabs = [
@@ -76,9 +77,17 @@ export default function SettingsPage() {
           role="tabpanel"
           aria-label={t(tabs.find((t2) => t2.id === activeTab)?.labelKey || "general")}
         >
-          {activeTab === "general" && <SystemStorageTab />}
+          {activeTab === "general" && (
+            <div className="flex flex-col gap-6">
+              <SystemStorageTab />
+            </div>
+          )}
 
-          {activeTab === "appearance" && <AppearanceTab />}
+          {activeTab === "appearance" && (
+            <div className="flex flex-col gap-6">
+              <AppearanceTab />
+            </div>
+          )}
 
           {activeTab === "ai" && (
             <div className="flex flex-col gap-6">
@@ -87,6 +96,7 @@ export default function SettingsPage() {
               <SystemPromptTab />
               <CacheStatsCard />
               <CacheSettingsTab />
+              <MemorySkillsTab />
             </div>
           )}
 
diff --git a/src/app/(dashboard)/dashboard/skills/page.tsx b/src/app/(dashboard)/dashboard/skills/page.tsx
new file mode 100644
index 0000000000..812adc5956
--- /dev/null
+++ b/src/app/(dashboard)/dashboard/skills/page.tsx
@@ -0,0 +1,230 @@
+"use client";
+
+import { useState, useEffect } from "react";
+import { Card } from "@/shared/components";
+import { useTranslations } from "next-intl";
+
+interface Skill {
+  id: string;
+  name: string;
+  version: string;
+  description: string;
+  enabled: boolean;
+  createdAt: string;
+}
+
+interface Execution {
+  id: string;
+  skillId: string;
+  skillName: string;
+  status: string;
+  duration: number;
+  createdAt: string;
+}
+
+export default function SkillsPage() {
+  const [skills, setSkills] = useState<Skill[]>([]);
+  const [executions, setExecutions] = useState<Execution[]>([]);
+  const [loading, setLoading] = useState(true);
+  const [activeTab, setActiveTab] = useState<"skills" | "executions" | "sandbox">("skills");
+  const t = useTranslations("skills");
+
+  useEffect(() => {
+    Promise.all([
+      fetch("/api/skills").then((r) => r.json()),
+      fetch("/api/skills/executions").then((r) => r.json()),
+    ])
+      .then(([skillsData, executionsData]) => {
+        setSkills(skillsData.skills || []);
+        setExecutions(executionsData.executions || []);
+        setLoading(false);
+      })
+      .catch(() => setLoading(false));
+  }, []);
+
+  const toggleSkill = async (skillId: string, enabled: boolean) => {
+    await fetch(`/api/skills/${skillId}`, {
+      method: "PUT",
+      headers: { "Content-Type": "application/json" },
+      body: JSON.stringify({ enabled: !enabled }),
+    });
+    setSkills(skills.map((s) => (s.id === skillId ? { ...s, enabled: !enabled } : s)));
+  };
+
+  if (loading) {
+    return (
+      <div className="flex items-center justify-center min-h-[400px]">
+        <div className="text-text-muted">{t("loading")}...</div>
+      </div>
+    );
+  }
+
+  return (
+    <div className="flex flex-col gap-6">
+      <div>
+        <h1 className="text-2xl font-bold">{t("title")}</h1>
+        <p className="text-text-muted mt-1">{t("description")}</p>
+      </div>
+
+      <div className="flex gap-2 border-b border-border">
+        <button
+          onClick={() => setActiveTab("skills")}
+          className={`px-4 py-2 text-sm font-medium border-b-2 transition-colors ${
+            activeTab === "skills"
+              ? "border-violet-500 text-violet-400"
+              : "border-transparent text-text-muted hover:text-text-main"
+          }`}
+        >
+          {t("skillsTab")}
+        </button>
+        <button
+          onClick={() => setActiveTab("executions")}
+          className={`px-4 py-2 text-sm font-medium border-b-2 transition-colors ${
+            activeTab === "executions"
+              ? "border-violet-500 text-violet-400"
+              : "border-transparent text-text-muted hover:text-text-main"
+          }`}
+        >
+          {t("executionsTab")}
+        </button>
+        <button
+          onClick={() => setActiveTab("sandbox")}
+          className={`px-4 py-2 text-sm font-medium border-b-2 transition-colors ${
+            activeTab === "sandbox"
+              ? "border-violet-500 text-violet-400"
+              : "border-transparent text-text-muted hover:text-text-main"
+          }`}
+        >
+          {t("sandboxTab")}
+        </button>
+      </div>
+
+      {activeTab === "skills" && (
+        <div className="grid gap-4">
+          {skills.length === 0 ? (
+            <Card>
+              <div className="text-center py-8 text-text-muted">{t("noSkills")}</div>
+            </Card>
+          ) : (
+            skills.map((skill) => (
+              <Card key={skill.id}>
+                <div className="flex items-center justify-between">
+                  <div>
+                    <div className="flex items-center gap-2">
+                      <h3 className="font-semibold">{skill.name}</h3>
+                      <span className="text-xs px-2 py-0.5 rounded bg-surface/50 text-text-muted">
+                        v{skill.version}
+                      </span>
+                    </div>
+                    <p className="text-sm text-text-muted mt-1">{skill.description}</p>
+                  </div>
+                  <button
+                    onClick={() => toggleSkill(skill.id, skill.enabled)}
+                    className={`relative w-11 h-6 rounded-full transition-colors ${
+                      skill.enabled ? "bg-violet-500" : "bg-border"
+                    }`}
+                    role="switch"
+                    aria-checked={skill.enabled}
+                  >
+                    <span
+                      className={`absolute top-1 left-1 w-4 h-4 bg-white rounded-full transition-transform ${
+                        skill.enabled ? "translate-x-5" : "translate-x-0"
+                      }`}
+                    />
+                  </button>
+                </div>
+              </Card>
+            ))
+          )}
+        </div>
+      )}
+
+      {activeTab === "executions" && (
+        <Card>
+          <div className="overflow-x-auto">
+            <table className="w-full">
+              <thead>
+                <tr className="text-left text-sm text-text-muted border-b border-border">
+                  <th className="pb-3 font-medium">{t("skill")}</th>
+                  <th className="pb-3 font-medium">{t("status")}</th>
+                  <th className="pb-3 font-medium">{t("duration")}</th>
+                  <th className="pb-3 font-medium">{t("time")}</th>
+                </tr>
+              </thead>
+              <tbody>
+                {executions.length === 0 ? (
+                  <tr>
+                    <td colSpan={4} className="py-8 text-center text-text-muted">
+                      {t("noExecutions")}
+                    </td>
+                  </tr>
+                ) : (
+                  executions.map((exec) => (
+                    <tr key={exec.id} className="border-b border-border/50">
+                      <td className="py-3 font-medium">{exec.skillName}</td>
+                      <td className="py-3">
+                        <span
+                          className={`text-xs px-2 py-1 rounded ${
+                            exec.status === "success"
+                              ? "bg-emerald-500/10 text-emerald-400"
+                              : exec.status === "error"
+                                ? "bg-red-500/10 text-red-400"
+                                : "bg-amber-500/10 text-amber-400"
+                          }`}
+                        >
+                          {exec.status}
+                        </span>
+                      </td>
+                      <td className="py-3 text-text-muted">{exec.duration}ms</td>
+                      <td className="py-3 text-text-muted text-sm">
+                        {new Date(exec.createdAt).toLocaleString()}
+                      </td>
+                    </tr>
+                  ))
+                )}
+              </tbody>
+            </table>
+          </div>
+        </Card>
+      )}
+
+      {activeTab === "sandbox" && (
+        <div className="grid gap-4">
+          <Card>
+            <h3 className="font-semibold mb-4">{t("sandboxConfig")}</h3>
+            <div className="grid gap-4">
+              <div className="flex items-center justify-between p-3 rounded-lg bg-surface/30">
+                <div>
+                  <p className="font-medium">{t("cpuLimit")}</p>
+                  <p className="text-xs text-text-muted">{t("cpuLimitDesc")}</p>
+                </div>
+                <span className="font-mono">100ms</span>
+              </div>
+              <div className="flex items-center justify-between p-3 rounded-lg bg-surface/30">
+                <div>
+                  <p className="font-medium">{t("memoryLimit")}</p>
+                  <p className="text-xs text-text-muted">{t("memoryLimitDesc")}</p>
+                </div>
+                <span className="font-mono">256MB</span>
+              </div>
+              <div className="flex items-center justify-between p-3 rounded-lg bg-surface/30">
+                <div>
+                  <p className="font-medium">{t("timeout")}</p>
+                  <p className="text-xs text-text-muted">{t("timeoutDesc")}</p>
+                </div>
+                <span className="font-mono">30s</span>
+              </div>
+              <div className="flex items-center justify-between p-3 rounded-lg bg-surface/30">
+                <div>
+                  <p className="font-medium">{t("networkAccess")}</p>
+                  <p className="text-xs text-text-muted">{t("networkAccessDesc")}</p>
+                </div>
+                <span className="text-text-muted">{t("disabled")}</span>
+              </div>
+            </div>
+          </Card>
+        </div>
+      )}
+    </div>
+  );
+}
diff --git a/src/app/api/memory/[id]/route.ts b/src/app/api/memory/[id]/route.ts
new file mode 100644
index 0000000000..4abbe5df32
--- /dev/null
+++ b/src/app/api/memory/[id]/route.ts
@@ -0,0 +1,36 @@
+import { NextResponse } from "next/server";
+import { deleteMemory, getMemory } from "@/lib/memory/store";
+
+export async function DELETE(
+  request: Request,
+  props: { params: Promise<{ id: string }> }
+) {
+  try {
+    const { id } = await props.params;
+    const success = await deleteMemory(id);
+    if (!success) {
+      return NextResponse.json({ error: "Memory not found" }, { status: 404 });
+    }
+    return NextResponse.json({ success: true });
+  } catch (err: unknown) {
+    const error = err instanceof Error ? err.message : String(err);
+    return NextResponse.json({ error }, { status: 500 });
+  }
+}
+
+export async function GET(
+  request: Request,
+  props: { params: Promise<{ id: string }> }
+) {
+  try {
+    const { id } = await props.params;
+    const memory = await getMemory(id);
+    if (!memory) {
+      return NextResponse.json({ error: "Not found" }, { status: 404 });
+    }
+    return NextResponse.json({ memory });
+  } catch (err: unknown) {
+    const error = err instanceof Error ? err.message : String(err);
+    return NextResponse.json({ error }, { status: 500 });
+  }
+}
diff --git a/src/app/api/memory/route.ts b/src/app/api/memory/route.ts
new file mode 100644
index 0000000000..9c77cb42d0
--- /dev/null
+++ b/src/app/api/memory/route.ts
@@ -0,0 +1,36 @@
+import { NextResponse } from "next/server";
+import { listMemories, createMemory } from "@/lib/memory/store";
+
+export async function GET(request: Request) {
+  try {
+    const { searchParams } = new URL(request.url);
+    const apiKeyId = searchParams.get("apiKeyId") || undefined;
+    const type = searchParams.get("type") as any || undefined;
+    const sessionId = searchParams.get("sessionId") || undefined;
+    const limitParams = searchParams.get("limit");
+    const offsetParams = searchParams.get("offset");
+
+    const memories = await listMemories({
+      apiKeyId,
+      type,
+      sessionId,
+      limit: limitParams ? parseInt(limitParams, 10) : undefined,
+      offset: offsetParams ? parseInt(offsetParams, 10) : undefined,
+    });
+    return NextResponse.json({ memories });
+  } catch (err: unknown) {
+    const error = err instanceof Error ? err.message : String(err);
+    return NextResponse.json({ error }, { status: 500 });
+  }
+}
+
+export async function POST(request: Request) {
+  try {
+    const body = await request.json();
+    const memoryId = await createMemory(body);
+    return NextResponse.json({ success: true, id: memoryId });
+  } catch (err: unknown) {
+    const error = err instanceof Error ? err.message : String(err);
+    return NextResponse.json({ error }, { status: 400 });
+  }
+}
diff --git a/src/app/api/skills/[id]/route.ts b/src/app/api/skills/[id]/route.ts
new file mode 100644
index 0000000000..0386143d7d
--- /dev/null
+++ b/src/app/api/skills/[id]/route.ts
@@ -0,0 +1,30 @@
+import { NextResponse } from "next/server";
+import { getDbInstance } from "@/lib/db/core";
+import { skillRegistry } from "@/lib/skills/registry";
+
+export async function PUT(
+  request: Request,
+  props: { params: Promise<{ id: string }> }
+) {
+  try {
+    const { id } = await props.params;
+    const body = await request.json();
+
+    if (typeof body.enabled !== "boolean") {
+      return NextResponse.json({ error: "Invalid payload, missing enabled boolean" }, { status: 400 });
+    }
+
+    const db = getDbInstance();
+    db.prepare("UPDATE skills SET enabled = ? WHERE id = ?").run(
+      body.enabled ? 1 : 0,
+      id
+    );
+
+    await skillRegistry.loadFromDatabase();
+    
+    return NextResponse.json({ success: true, enabled: body.enabled });
+  } catch (err: unknown) {
+    const error = err instanceof Error ? err.message : String(err);
+    return NextResponse.json({ error }, { status: 500 });
+  }
+}
diff --git a/src/app/api/skills/executions/route.ts b/src/app/api/skills/executions/route.ts
new file mode 100644
index 0000000000..098fa5dcc6
--- /dev/null
+++ b/src/app/api/skills/executions/route.ts
@@ -0,0 +1,12 @@
+import { NextResponse } from "next/server";
+import { skillExecutor } from "@/lib/skills/executor";
+
+export async function GET() {
+  try {
+    const executions = skillExecutor.listExecutions();
+    return NextResponse.json({ executions });
+  } catch (err: unknown) {
+    const error = err instanceof Error ? err.message : String(err);
+    return NextResponse.json({ error }, { status: 500 });
+  }
+}
diff --git a/src/app/api/skills/route.ts b/src/app/api/skills/route.ts
new file mode 100644
index 0000000000..ca2a8e1580
--- /dev/null
+++ b/src/app/api/skills/route.ts
@@ -0,0 +1,13 @@
+import { NextResponse } from "next/server";
+import { skillRegistry } from "@/lib/skills/registry";
+
+export async function GET() {
+  try {
+    await skillRegistry.loadFromDatabase();
+    const skills = skillRegistry.list();
+    return NextResponse.json({ skills });
+  } catch (err: unknown) {
+    const error = err instanceof Error ? err.message : String(err);
+    return NextResponse.json({ error }, { status: 500 });
+  }
+}
diff --git a/src/lib/benchmarks.ts b/src/lib/benchmarks.ts
new file mode 100644
index 0000000000..03caeba9d3
--- /dev/null
+++ b/src/lib/benchmarks.ts
@@ -0,0 +1,33 @@
+export interface BenchmarkResult {
+  name: string;
+  duration: number;
+  opsPerSecond: number;
+  memory: number;
+  success: boolean;
+}
+
+export async function runBenchmarks(): Promise<BenchmarkResult[]> {
+  const results: BenchmarkResult[] = [];
+
+  results.push({
+    name: "memory_retrieval",
+    duration: 0,
+    opsPerSecond: 0,
+    memory: 0,
+    success: true,
+  });
+
+  results.push({
+    name: "skill_execution",
+    duration: 0,
+    opsPerSecond: 0,
+    memory: 0,
+    success: true,
+  });
+
+  return results;
+}
+
+export function formatBenchmarkReport(results: BenchmarkResult[]): string {
+  return results.map((r) => `${r.name}: ${r.opsPerSecond.toFixed(2)} ops/s`).join("\n");
+}
diff --git a/src/lib/db/migrations/015_create_memories.sql b/src/lib/db/migrations/015_create_memories.sql
new file mode 100644
index 0000000000..e98b094391
--- /dev/null
+++ b/src/lib/db/migrations/015_create_memories.sql
@@ -0,0 +1,22 @@
+-- 014_create_memories.sql
+-- Memories table for persistent context storage.
+-- Stores structured conversation memories with support for different memory types.
+
+CREATE TABLE IF NOT EXISTS memories (
+  id TEXT PRIMARY KEY,
+  api_key_id TEXT NOT NULL,
+  session_id TEXT,
+  type TEXT NOT NULL CHECK(type IN ('factual', 'episodic', 'procedural', 'semantic')),
+  key TEXT,
+  content TEXT NOT NULL,
+  metadata TEXT,
+  created_at TEXT NOT NULL DEFAULT (datetime('now')),
+  updated_at TEXT NOT NULL DEFAULT (datetime('now')),
+  expires_at TEXT
+);
+
+-- Indexes for performance optimization
+CREATE INDEX IF NOT EXISTS idx_memories_api_key ON memories(api_key_id);
+CREATE INDEX IF NOT EXISTS idx_memories_session ON memories(session_id);
+CREATE INDEX IF NOT EXISTS idx_memories_type ON memories(type);
+CREATE INDEX IF NOT EXISTS idx_memories_expires ON memories(expires_at);
diff --git a/src/lib/db/migrations/016_create_skills.sql b/src/lib/db/migrations/016_create_skills.sql
new file mode 100644
index 0000000000..f765efb284
--- /dev/null
+++ b/src/lib/db/migrations/016_create_skills.sql
@@ -0,0 +1,37 @@
+-- 015_create_skills.sql
+-- Skills table for tool/function capability injection.
+-- Stores skill definitions with schemas and execution tracking.
+
+CREATE TABLE IF NOT EXISTS skills (
+  id TEXT PRIMARY KEY,
+  api_key_id TEXT NOT NULL,
+  name TEXT NOT NULL,
+  version TEXT NOT NULL DEFAULT '1.0.0',
+  description TEXT,
+  schema TEXT NOT NULL,
+  handler TEXT NOT NULL,
+  enabled INTEGER NOT NULL DEFAULT 1,
+  created_at TEXT NOT NULL DEFAULT (datetime('now')),
+  updated_at TEXT NOT NULL DEFAULT (datetime('now'))
+);
+
+CREATE TABLE IF NOT EXISTS skill_executions (
+  id TEXT PRIMARY KEY,
+  skill_id TEXT NOT NULL,
+  api_key_id TEXT NOT NULL,
+  session_id TEXT,
+  input TEXT NOT NULL,
+  output TEXT,
+  status TEXT NOT NULL CHECK(status IN ('pending', 'running', 'success', 'error', 'timeout')),
+  error_message TEXT,
+  duration_ms INTEGER,
+  created_at TEXT NOT NULL DEFAULT (datetime('now')),
+  FOREIGN KEY (skill_id) REFERENCES skills(id) ON DELETE CASCADE
+);
+
+CREATE INDEX IF NOT EXISTS idx_skills_api_key ON skills(api_key_id);
+CREATE INDEX IF NOT EXISTS idx_skills_name ON skills(name);
+CREATE INDEX IF NOT EXISTS idx_skill_executions_skill ON skill_executions(skill_id);
+CREATE INDEX IF NOT EXISTS idx_skill_executions_api_key ON skill_executions(api_key_id);
+CREATE INDEX IF NOT EXISTS idx_skill_executions_status ON skill_executions(status);
+CREATE INDEX IF NOT EXISTS idx_skill_executions_created ON skill_executions(created_at);
\ No newline at end of file
diff --git a/src/lib/memory/__tests__/injection.test.ts b/src/lib/memory/__tests__/injection.test.ts
new file mode 100644
index 0000000000..716f40ddd9
--- /dev/null
+++ b/src/lib/memory/__tests__/injection.test.ts
@@ -0,0 +1,206 @@
+import { describe, test, expect } from "vitest";
+import {
+  injectMemory,
+  shouldInjectMemory,
+  formatMemoryContext,
+  providerSupportsSystemMessage,
+  ChatRequest,
+} from "../injection";
+import { Memory, MemoryType } from "../types";
+
+function makeMemory(content: string, overrides: Partial<Memory> = {}): Memory {
+  return {
+    id: "mem-1",
+    apiKeyId: "key-1",
+    sessionId: "sess-1",
+    type: MemoryType.FACTUAL,
+    key: "test-key",
+    content,
+    metadata: {},
+    createdAt: new Date(),
+    updatedAt: new Date(),
+    expiresAt: null,
+    ...overrides,
+  };
+}
+
+function makeRequest(overrides: Partial<ChatRequest> = {}): ChatRequest {
+  return {
+    model: "gpt-4",
+    messages: [{ role: "user", content: "Hello" }],
+    ...overrides,
+  };
+}
+
+describe("formatMemoryContext", () => {
+  test("returns empty string for empty array", () => {
+    expect(formatMemoryContext([])).toBe("");
+  });
+
+  test("single memory is formatted with 'Memory context:' prefix", () => {
+    const result = formatMemoryContext([makeMemory("User prefers dark mode")]);
+    expect(result).toBe("Memory context: User prefers dark mode");
+  });
+
+  test("multiple memories are joined with newline", () => {
+    const memories = [makeMemory("fact one"), makeMemory("fact two")];
+    const result = formatMemoryContext(memories);
+    expect(result).toBe("Memory context: fact one\nfact two");
+  });
+
+  test("trims whitespace from individual memory content", () => {
+    const result = formatMemoryContext([makeMemory("  padded content  ")]);
+    expect(result).toBe("Memory context: padded content");
+  });
+
+  test("filters out blank memories", () => {
+    const memories = [makeMemory("real content"), makeMemory("   ")];
+    const result = formatMemoryContext(memories);
+    expect(result).toBe("Memory context: real content");
+  });
+});
+
+describe("providerSupportsSystemMessage", () => {
+  test("returns true for null/undefined provider", () => {
+    expect(providerSupportsSystemMessage(null)).toBe(true);
+    expect(providerSupportsSystemMessage(undefined)).toBe(true);
+  });
+
+  test("returns true for standard providers", () => {
+    expect(providerSupportsSystemMessage("openai")).toBe(true);
+    expect(providerSupportsSystemMessage("anthropic")).toBe(true);
+    expect(providerSupportsSystemMessage("deepseek")).toBe(true);
+    expect(providerSupportsSystemMessage("google")).toBe(true);
+  });
+
+  test("returns false for o1 family providers", () => {
+    expect(providerSupportsSystemMessage("o1")).toBe(false);
+    expect(providerSupportsSystemMessage("o1-mini")).toBe(false);
+    expect(providerSupportsSystemMessage("o1-preview")).toBe(false);
+  });
+
+  test("comparison is case-insensitive", () => {
+    expect(providerSupportsSystemMessage("O1")).toBe(false);
+    expect(providerSupportsSystemMessage("O1-MINI")).toBe(false);
+  });
+});
+
+describe("injectMemory — system message injection", () => {
+  test("injects memory as system message when provider supports it", () => {
+    const request = makeRequest();
+    const memories = [makeMemory("User prefers concise answers")];
+    const result = injectMemory(request, memories, "openai");
+
+    expect(result.messages[0].role).toBe("system");
+    expect(result.messages[0].content).toBe("Memory context: User prefers concise answers");
+    expect(result.messages[1]).toEqual({ role: "user", content: "Hello" });
+  });
+
+  test("preserves existing messages after injected system message", () => {
+    const request = makeRequest({
+      messages: [
+        { role: "system", content: "You are helpful" },
+        { role: "user", content: "Hello" },
+      ],
+    });
+    const memories = [makeMemory("User is an expert developer")];
+    const result = injectMemory(request, memories, "anthropic");
+
+    expect(result.messages).toHaveLength(3);
+    expect(result.messages[0].role).toBe("system");
+    expect(result.messages[0].content).toContain("Memory context:");
+    expect(result.messages[1]).toEqual({ role: "system", content: "You are helpful" });
+    expect(result.messages[2]).toEqual({ role: "user", content: "Hello" });
+  });
+
+  test("does not mutate the original request", () => {
+    const request = makeRequest();
+    const originalMessages = [...request.messages];
+    const memories = [makeMemory("Some fact")];
+    injectMemory(request, memories, "openai");
+
+    expect(request.messages).toEqual(originalMessages);
+  });
+
+  test("preserves all other request fields", () => {
+    const request = makeRequest({ temperature: 0.7, max_tokens: 256, stream: true });
+    const memories = [makeMemory("fact")];
+    const result = injectMemory(request, memories, "openai");
+
+    expect(result.temperature).toBe(0.7);
+    expect(result.max_tokens).toBe(256);
+    expect(result.stream).toBe(true);
+    expect(result.model).toBe("gpt-4");
+  });
+});
+
+describe("injectMemory — message prefix fallback", () => {
+  test("injects memory as first user message for o1 provider", () => {
+    const request = makeRequest();
+    const memories = [makeMemory("User context detail")];
+    const result = injectMemory(request, memories, "o1");
+
+    expect(result.messages[0].role).toBe("user");
+    expect(result.messages[0].content).toBe("Memory context: User context detail");
+    expect(result.messages[1]).toEqual({ role: "user", content: "Hello" });
+  });
+
+  test("injects memory as first user message for o1-mini", () => {
+    const request = makeRequest();
+    const memories = [makeMemory("Preference")];
+    const result = injectMemory(request, memories, "o1-mini");
+
+    expect(result.messages[0].role).toBe("user");
+    expect(result.messages[0].content).toContain("Memory context:");
+  });
+});
+
+describe("injectMemory — edge cases", () => {
+  test("returns original request when memories array is empty", () => {
+    const request = makeRequest();
+    const result = injectMemory(request, [], "openai");
+    expect(result).toBe(request);
+  });
+
+  test("returns original request when memories is null-ish", () => {
+    const request = makeRequest();
+    const result = injectMemory(request, null as unknown as Memory[], "openai");
+    expect(result).toBe(request);
+  });
+
+  test("handles request with empty messages array", () => {
+    const request = makeRequest({ messages: [] });
+    const memories = [makeMemory("fact")];
+    const result = injectMemory(request, memories, "openai");
+
+    expect(result.messages).toHaveLength(1);
+    expect(result.messages[0].role).toBe("system");
+  });
+
+  test("handles multiple memories combined into single injection", () => {
+    const request = makeRequest();
+    const memories = [makeMemory("fact A"), makeMemory("fact B"), makeMemory("fact C")];
+    const result = injectMemory(request, memories, "openai");
+
+    expect(result.messages[0].role).toBe("system");
+    expect(result.messages[0].content).toBe("Memory context: fact A\nfact B\nfact C");
+    expect(result.messages).toHaveLength(2);
+  });
+});
+
+describe("shouldInjectMemory", () => {
+  test("returns true when messages are present and enabled not set", () => {
+    const request = makeRequest();
+    expect(shouldInjectMemory(request)).toBe(true);
+  });
+
+  test("returns false when config.enabled is false", () => {
+    const request = makeRequest();
+    expect(shouldInjectMemory(request, { enabled: false })).toBe(false);
+  });
+
+  test("returns false when messages array is empty", () => {
+    const request = makeRequest({ messages: [] });
+    expect(shouldInjectMemory(request)).toBe(false);
+  });
+});
diff --git a/src/lib/memory/__tests__/schemas.test.ts b/src/lib/memory/__tests__/schemas.test.ts
new file mode 100644
index 0000000000..ca0d908df7
--- /dev/null
+++ b/src/lib/memory/__tests__/schemas.test.ts
@@ -0,0 +1,44 @@
+import { MemoryConfigSchema, MemoryCreateInputSchema, MemoryUpdateInputSchema } from "../schemas";
+import { z } from "zod";
+
+describe("Memory Schemas", () => {
+  const validConfig = {
+    enabled: true,
+    maxTokens: 2048,
+    retrievalStrategy: "semantic",
+    autoSummarize: true,
+    persistAcrossModels: true,
+    retentionDays: 30,
+    scope: "apiKey",
+  };
+
+  const validCreateInput = {
+    type: "factual",
+    key: "user_preference",
+    content: "Dark mode enabled",
+    metadata: { source: "settings" },
+  };
+
+  const validUpdateInput = {
+    content: "Updated content",
+    metadata: { updatedAt: new Date() },
+  };
+
+  test("MemoryConfigSchema validation", () => {
+    expect(MemoryConfigSchema.parse(validConfig)).toBeDefined();
+    const invalidConfig = { ...validConfig, maxTokens: -1 };
+    expect(() => MemoryConfigSchema.parse(invalidConfig)).toThrow();
+  });
+
+  test("MemoryCreateInputSchema validation", () => {
+    expect(MemoryCreateInputSchema.parse(validCreateInput)).toBeDefined();
+    const invalidCreate = { ...validCreateInput, key: "" };
+    expect(() => MemoryCreateInputSchema.parse(invalidCreate)).toThrow();
+  });
+
+  test("MemoryUpdateInputSchema validation", () => {
+    expect(MemoryUpdateInputSchema.parse(validUpdateInput)).toBeDefined();
+    const invalidUpdate = { key: "test" };
+    expect(() => MemoryUpdateInputSchema.parse(invalidUpdate)).toThrow();
+  });
+});
diff --git a/src/lib/memory/cache.ts b/src/lib/memory/cache.ts
new file mode 100644
index 0000000000..af993a515b
--- /dev/null
+++ b/src/lib/memory/cache.ts
@@ -0,0 +1,64 @@
+import { getDbInstance } from "../db/core";
+
+interface MemoryCache {
+  key: string;
+  value: any;
+  timestamp: number;
+  ttl: number;
+}
+
+class MemoryCachingLayer {
+  private cache: Map<string, MemoryCache> = new Map();
+  private maxSize: number = 1000;
+  private defaultTtl: number = 300000;
+
+  async get(key: string): Promise<any | null> {
+    const entry = this.cache.get(key);
+    if (!entry) return null;
+
+    if (Date.now() - entry.timestamp > entry.ttl) {
+      this.cache.delete(key);
+      return null;
+    }
+
+    return entry.value;
+  }
+
+  async set(key: string, value: any, ttl?: number): Promise<void> {
+    if (this.cache.size >= this.maxSize) {
+      const oldest = Array.from(this.cache.entries()).sort(
+        (a, b) => a[1].timestamp - b[1].timestamp
+      )[0];
+      this.cache.delete(oldest[0]);
+    }
+
+    this.cache.set(key, {
+      key,
+      value,
+      timestamp: Date.now(),
+      ttl: ttl || this.defaultTtl,
+    });
+  }
+
+  async invalidate(pattern: string): Promise<void> {
+    const regex = new RegExp(pattern);
+    for (const key of this.cache.keys()) {
+      if (regex.test(key)) {
+        this.cache.delete(key);
+      }
+    }
+  }
+
+  async clear(): Promise<void> {
+    this.cache.clear();
+  }
+
+  stats() {
+    return {
+      size: this.cache.size,
+      maxSize: this.maxSize,
+    };
+  }
+}
+
+export const memoryCache = new MemoryCachingLayer();
diff --git a/src/lib/memory/extraction.ts b/src/lib/memory/extraction.ts
new file mode 100644
index 0000000000..b73de6af33
--- /dev/null
+++ b/src/lib/memory/extraction.ts
@@ -0,0 +1,180 @@
+/**
+ * Fact extraction from LLM responses.
+ * Parses text for user preferences, decisions, and patterns.
+ * Stores extracted facts asynchronously (non-blocking).
+ */
+
+import { createMemory } from "./store";
+import { MemoryType } from "./types";
+
+// ─── Pattern Definitions ────────────────────────────────────────────────────
+
+/** Patterns indicating user preferences */
+const PREFERENCE_PATTERNS: RegExp[] = [
+  /\bI\s+(?:really\s+)?prefer\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+(?:really\s+)?like\s+(.+?)(?:\.|,|$)/gi,
+  /\bmy\s+(?:favorite|favourite)\s+(?:is|are)\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+(?:don'?t|do\s+not)\s+like\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+(?:hate|dislike|avoid)\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+enjoy\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+love\s+(.+?)(?:\.|,|$)/gi,
+];
+
+/** Patterns indicating user decisions */
+const DECISION_PATTERNS: RegExp[] = [
+  /\bI'?(?:ll|will)\s+use\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+chose\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+(?:have\s+)?decided\s+(?:to\s+)?(.+?)(?:\.|,|$)/gi,
+  /\bI'?m\s+going\s+(?:to\s+)?(?:use|with|adopt)\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+selected\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+picked\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+went\s+with\s+(.+?)(?:\.|,|$)/gi,
+];
+
+/** Patterns indicating user behavioral patterns */
+const PATTERN_PATTERNS: RegExp[] = [
+  /\bI\s+usually\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+always\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+never\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+typically\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+tend\s+to\s+(.+?)(?:\.|,|$)/gi,
+  /\bI\s+(?:often|frequently|regularly)\s+(.+?)(?:\.|,|$)/gi,
+];
+
+// Maximum length for extracted content
+const MAX_FACT_LENGTH = 500;
+// Minimum content length to avoid noise
+const MIN_FACT_LENGTH = 3;
+
+// ─── Types ──────────────────────────────────────────────────────────────────
+
+export interface ExtractedFact {
+  key: string;
+  content: string;
+  type: MemoryType;
+  category: "preference" | "decision" | "pattern";
+}
+
+// ─── Extraction Logic ────────────────────────────────────────────────────────
+
+/**
+ * Sanitize a matched string: trim, collapse whitespace, cap length
+ */
+function sanitizeMatch(raw: string): string {
+  return raw.trim().replace(/\s+/g, " ").slice(0, MAX_FACT_LENGTH);
+}
+
+/**
+ * Generate a stable key for a fact (category + first 40 chars of content)
+ */
+function factKey(category: string, content: string): string {
+  const slug = content
+    .toLowerCase()
+    .replace(/[^a-z0-9]+/g, "_")
+    .slice(0, 40)
+    .replace(/_+$/, "");
+  return `${category}:${slug}`;
+}
+
+/**
+ * Run a set of patterns against text and collect extracted facts.
+ * Deduplicates by key within the batch.
+ */
+function runPatterns(
+  text: string,
+  patterns: RegExp[],
+  category: "preference" | "decision" | "pattern",
+  memoryType: MemoryType,
+  seen: Set<string>
+): ExtractedFact[] {
+  const facts: ExtractedFact[] = [];
+
+  for (const pattern of patterns) {
+    // Reset lastIndex for global regex
+    pattern.lastIndex = 0;
+
+    let match: RegExpExecArray | null;
+    while ((match = pattern.exec(text)) !== null) {
+      const raw = match[1];
+      if (!raw) continue;
+
+      const content = sanitizeMatch(raw);
+      if (content.length < MIN_FACT_LENGTH) continue;
+
+      const key = factKey(category, content);
+      if (seen.has(key)) continue;
+      seen.add(key);
+
+      facts.push({ key, content, type: memoryType, category });
+    }
+
+    // Reset again after use
+    pattern.lastIndex = 0;
+  }
+
+  return facts;
+}
+
+/**
+ * Extract facts from a text string.
+ * Returns structured fact objects without storing them.
+ * Safe to call from tests without a DB.
+ */
+export function extractFactsFromText(text: string): ExtractedFact[] {
+  if (!text || typeof text !== "string") return [];
+
+  const seen = new Set<string>();
+  const facts: ExtractedFact[] = [];
+
+  // Preferences → factual memory
+  facts.push(...runPatterns(text, PREFERENCE_PATTERNS, "preference", MemoryType.FACTUAL, seen));
+
+  // Decisions → episodic memory (tied to a moment in time)
+  facts.push(...runPatterns(text, DECISION_PATTERNS, "decision", MemoryType.EPISODIC, seen));
+
+  // Patterns → factual memory (persistent behavioral facts)
+  facts.push(...runPatterns(text, PATTERN_PATTERNS, "pattern", MemoryType.FACTUAL, seen));
+
+  return facts;
+}
+
+/**
+ * Extract facts from an LLM response and store them asynchronously.
+ * Non-blocking: fires-and-forgets via setImmediate.
+ * Does NOT extract from tool call results (tool_calls check).
+ *
+ * @param response - The LLM response text to parse
+ * @param apiKeyId - API key owning this memory
+ * @param sessionId - Session context for the memory
+ */
+export function extractFacts(response: string, apiKeyId: string, sessionId: string): void {
+  if (!response || !apiKeyId || !sessionId) return;
+
+  // Non-blocking: schedule after current event loop tick
+  setImmediate(() => {
+    const facts = extractFactsFromText(response);
+    if (facts.length === 0) return;
+
+    // Store each fact, swallow errors to never block the response pipeline
+    for (const fact of facts) {
+      createMemory({
+        apiKeyId,
+        sessionId,
+        type: fact.type,
+        key: fact.key,
+        content: fact.content,
+        metadata: {
+          category: fact.category,
+          extractedAt: new Date().toISOString(),
+          source: "llm_response",
+        },
+        expiresAt: null,
+      }).catch((err) => {
+        // Silent: extraction must never affect response delivery
+        if (process.env.NODE_ENV !== "test") {
+          console.warn("[memory:extraction] Failed to store fact:", err?.message);
+        }
+      });
+    }
+  });
+}
diff --git a/src/lib/memory/injection.ts b/src/lib/memory/injection.ts
new file mode 100644
index 0000000000..ff5f40798f
--- /dev/null
+++ b/src/lib/memory/injection.ts
@@ -0,0 +1,104 @@
+/**
+ * Memory Injection — prepend retrieved memories into the request message list.
+ *
+ * Injection strategy:
+ *   1. If the provider supports system messages (most providers), inject as a
+ *      leading system message so it takes effect without disrupting user turns.
+ *   2. Otherwise (fallback for providers that reject system role), inject as the
+ *      first user message prefixed with the memory context label.
+ *
+ * Format: "Memory context: <content>"
+ */
+
+import { Memory } from "./types";
+
+export interface ChatMessage {
+  role: "system" | "user" | "assistant";
+  content: string;
+  name?: string;
+}
+
+export interface ChatRequest {
+  model: string;
+  messages: ChatMessage[];
+  system?: string;
+  temperature?: number;
+  max_tokens?: number;
+  stream?: boolean;
+  [key: string]: unknown;
+}
+
+/**
+ * Providers known NOT to support a top-level system-role message.
+ * These receive memories injected as the first user message instead.
+ */
+const PROVIDERS_WITHOUT_SYSTEM_MESSAGE = new Set(["o1", "o1-mini", "o1-preview"]);
+
+/**
+ * Returns true when the given provider accepts a system-role message.
+ * Falls back to true for unknown/null providers (safe default).
+ */
+export function providerSupportsSystemMessage(provider: string | null | undefined): boolean {
+  if (!provider) return true;
+  const normalized = provider.toLowerCase().trim();
+  return !PROVIDERS_WITHOUT_SYSTEM_MESSAGE.has(normalized);
+}
+
+/**
+ * Format memories into a single labeled context string.
+ * Format: "Memory context: <content1>\n<content2>..."
+ */
+export function formatMemoryContext(memories: Memory[]): string {
+  if (!memories || memories.length === 0) return "";
+
+  const content = memories
+    .map((m) => m.content.trim())
+    .filter(Boolean)
+    .join("\n");
+
+  return content ? `Memory context: ${content}` : "";
+}
+
+/**
+ * Inject retrieved memories into the request message array.
+ *
+ * @param request  - The chat completion request body
+ * @param memories - Memories retrieved for the current API key / session
+ * @param provider - Provider identifier used to choose injection strategy
+ * @returns A new request body with memories prepended to messages
+ */
+export function injectMemory(
+  request: ChatRequest,
+  memories: Memory[],
+  provider: string | null | undefined
+): ChatRequest {
+  if (!memories || memories.length === 0) {
+    return request;
+  }
+
+  const memoryText = formatMemoryContext(memories);
+  if (!memoryText) return request;
+
+  const messages: ChatMessage[] = Array.isArray(request.messages) ? [...request.messages] : [];
+
+  if (providerSupportsSystemMessage(provider)) {
+    // Strategy 1: inject as a leading system message.
+    // Prepending before any existing system messages keeps memory context
+    // accessible without overriding the caller's own system instructions.
+    const memorySystemMessage: ChatMessage = { role: "system", content: memoryText };
+    return { ...request, messages: [memorySystemMessage, ...messages] };
+  } else {
+    // Strategy 2 (fallback): inject as the first user message.
+    // Used for providers like o1-mini that reject the system role.
+    const memoryUserMessage: ChatMessage = { role: "user", content: memoryText };
+    return { ...request, messages: [memoryUserMessage, ...messages] };
+  }
+}
+
+/**
+ * Returns true when memory injection should be attempted for this request.
+ */
+export function shouldInjectMemory(request: ChatRequest, config?: { enabled?: boolean }): boolean {
+  if (config?.enabled === false) return false;
+  return Array.isArray(request.messages) && request.messages.length > 0;
+}
diff --git a/src/lib/memory/retrieval.ts b/src/lib/memory/retrieval.ts
new file mode 100644
index 0000000000..ce5ab7df51
--- /dev/null
+++ b/src/lib/memory/retrieval.ts
@@ -0,0 +1,99 @@
+import { getDbInstance } from "../db/core";
+import { Memory, MemoryConfig, MemoryType } from "./types";
+import { MemoryConfigSchema } from "./schemas";
+
+/**
+ * Simple token estimation function (roughly 1 token per 4 characters)
+ */
+export function estimateTokens(text: string): number {
+  if (!text || typeof text !== "string") return 0;
+  return Math.ceil(text.length / 4);
+}
+
+/**
+ * Retrieve memories with token budget enforcement
+ */
+export async function retrieveMemories(
+  apiKeyId: string,
+  config: Partial<MemoryConfig> = {}
+): Promise<Memory[]> {
+  // Validate and normalize config
+  const normalizedConfig = MemoryConfigSchema.parse({
+    enabled: true,
+    maxTokens: 2000,
+    retrievalStrategy: "recent",
+    autoSummarize: false,
+    persistAcrossModels: false,
+    retentionDays: 30,
+    scope: "apiKey",
+    ...config,
+  });
+
+  const maxTokens = Math.min(Math.max(normalizedConfig.maxTokens, 100), 8000);
+  const strategy = normalizedConfig.retrievalStrategy;
+
+  const db = getDbInstance();
+  const memories: Memory[] = [];
+  let totalTokens = 0;
+
+  // Build base query
+  let query = "SELECT * FROM memory WHERE apiKeyId = ?";
+  const params: any[] = [apiKeyId];
+
+  // Add ordering based on strategy
+  switch (strategy) {
+    case "semantic":
+      // For now, semantic search is same as exact (FTS5 not implemented yet)
+      query += " ORDER BY createdAt DESC";
+      break;
+    case "hybrid":
+      // Hybrid is same as exact for now
+      query += " ORDER BY createdAt DESC";
+      break;
+    case "exact":
+    default:
+      query += " ORDER BY createdAt DESC";
+  }
+
+  // Add limit for performance
+  query += " LIMIT 100";
+
+  // Execute query
+  const stmt = db.prepare(query);
+  const rows = stmt.all(...params);
+
+  // Process memories until budget exceeded
+  for (const row of rows) {
+    const memory: Memory = {
+      id: String((row as any).id),
+      apiKeyId: String((row as any).apiKeyId),
+      sessionId: String((row as any).sessionId),
+      type: (row as any).type as MemoryType,
+      key: String((row as any).key),
+      content: String((row as any).content),
+      metadata: JSON.parse(String((row as any).metadata)),
+      createdAt: new Date(String((row as any).createdAt)),
+      updatedAt: new Date(String((row as any).updatedAt)),
+      expiresAt: (row as any).expiresAt ? new Date(String((row as any).expiresAt)) : null,
+    };
+
+    // Estimate tokens for this memory
+    const memoryTokens = estimateTokens(memory.content);
+
+    // Check if adding this memory would exceed budget
+    if (totalTokens + memoryTokens > maxTokens) {
+      // If we haven't added any memories yet, add this one anyway
+      if (memories.length === 0) {
+        memories.push(memory);
+        totalTokens += memoryTokens;
+      }
+      break;
+    }
+
+    // Add memory to results
+    memories.push(memory);
+    totalTokens += memoryTokens;
+  }
+
+  return memories;
+}
diff --git a/src/lib/memory/schemas.ts b/src/lib/memory/schemas.ts
new file mode 100644
index 0000000000..0a1fb7bf03
--- /dev/null
+++ b/src/lib/memory/schemas.ts
@@ -0,0 +1,46 @@
+import { z } from "zod";
+import { MemoryType } from "./types";
+
+/**
+ * MemoryConfig schema - validates memory system configuration settings
+ */
+export const MemoryConfigSchema = z.object({
+  enabled: z.boolean(),
+  maxTokens: z.number().int().positive(),
+  retrievalStrategy: z.enum(["exact", "semantic", "hybrid"]).optional(),
+  autoSummarize: z.boolean(),
+  persistAcrossModels: z.boolean(),
+  retentionDays: z.number().int().positive(),
+  scope: z.enum(["session", "apiKey", "global"]).optional(),
+});
+
+/**
+ * MemoryCreateInput schema - validates input for creating new memories
+ */
+export const MemoryCreateInputSchema = z
+  .object({
+    type: z.nativeEnum(MemoryType),
+    key: z.string().min(1),
+    content: z.string().min(1),
+    metadata: z.record(z.unknown()).optional(),
+  })
+  .strict();
+
+/**
+ * MemoryUpdateInput schema - validates input for partially updating existing memories
+ */
+export const MemoryUpdateInputSchema = z
+  .object({
+    type: z.nativeEnum(MemoryType).optional(),
+    key: z.string().min(1).optional(),
+    content: z.string().min(1).optional(),
+    metadata: z.record(z.unknown()).optional(),
+  })
+  .strict();
+
+/**
+ * Exported schema types for TypeScript references
+ */
+export type MemoryConfig = z.infer<typeof MemoryConfigSchema>;
+export type MemoryCreateInput = z.infer<typeof MemoryCreateInputSchema>;
+export type MemoryUpdateInput = z.infer<typeof MemoryUpdateInputSchema>;
diff --git a/src/lib/memory/store.ts b/src/lib/memory/store.ts
new file mode 100644
index 0000000000..6e93042dc7
--- /dev/null
+++ b/src/lib/memory/store.ts
@@ -0,0 +1,339 @@
+/**
+ * Memory store - CRUD operations with prepared statements and caching
+ */
+
+import { getDbInstance, rowToCamel } from "../db/core";
+import { toRecord } from "../db/apiKeys";
+import { Memory, MemoryType } from "./types";
+import { CacheEntry } from "../db/apiKeys";
+
+// Memory cache configuration
+const MEMORY_CACHE_TTL = 300_000; // 5 minutes
+const MEMORY_MAX_CACHE_SIZE = 10_000;
+
+// Cache for recently accessed memories
+const _memoryCache = new Map<string, CacheEntry<Memory>>();
+
+// Helper function to safely parse JSON strings
+function parseJSON(value: unknown): Record<string, unknown> {
+  if (!value || typeof value !== "string" || value.trim() === "") {
+    return {};
+  }
+  try {
+    const parsed = JSON.parse(value);
+    return typeof parsed === "object" && parsed !== null ? parsed : {};
+  } catch {
+    return {};
+  }
+}
+
+// Cache invalidation strategy
+function invalidateMemoryCache(key: string) {
+  _memoryCache.delete(key);
+}
+
+/**
+ * Memory cache management with size control
+ */
+function evictIfNeeded<TKey, TValue>(cache: Map<TKey, TValue>) {
+  if (cache.size > MEMORY_MAX_CACHE_SIZE) {
+    // Remove oldest entries first
+    const keysArray = Array.from(cache.keys());
+    const entriesToRemove = Math.floor(cache.size * 0.2);
+    for (let i = 0; i < entriesToRemove; i++) {
+      cache.delete(keysArray[i]);
+    }
+  }
+}
+
+/**
+ * Get or compile regex for wildcard pattern
+ */
+function getWildcardRegex(pattern: string): RegExp {
+  // This function is copied from apiKeys.ts pattern
+  let regex = _regexCache.get(pattern);
+  if (!regex) {
+    const regexStr = pattern.replace(/\*/g, ".*");
+    regex = new RegExp(`^${regexStr}$`);
+    _regexCache.set(pattern, regex);
+    // Prevent unbounded growth
+    if (_regexCache.size > 100) {
+      const firstKey = _regexCache.keys().next().value;
+      if (firstKey) _regexCache.delete(firstKey);
+    }
+  }
+  return regex;
+}
+
+// Compiled regex cache for wildcard patterns
+const _regexCache = new Map<string, RegExp>();
+
+// Cache for memory validation (similar to apiKeys)
+const _memoryValidationCache = new Map<string, { exists: boolean; timestamp: number }>();
+const MEMORY_VALIDATION_CACHE_TTL = 60 * 1000; // 1 minute TTL
+
+/**
+ * Check if memory exists with caching
+ */
+async function memoryExists(id: string): Promise<boolean> {
+  if (!id || typeof id !== "string") return false;
+
+  const now = Date.now();
+
+  // Check cache first
+  const cached = _memoryValidationCache.get(id);
+  if (cached && now - cached.timestamp < MEMORY_VALIDATION_CACHE_TTL) {
+    return cached.exists;
+  }
+
+  const db = getDbInstance();
+  const stmt = db.prepare("SELECT 1 FROM memory WHERE id = ?");
+  const row = stmt.get(id);
+  const exists = !!row;
+
+  // Cache the result to prevent cache pollution
+  if (exists) {
+    _memoryValidationCache.set(id, { exists: true, timestamp: now });
+  }
+
+  return exists;
+}
+
+/**
+ * Create a new memory entry
+ */
+export async function createMemory(
+  memory: Omit<Memory, "id" | "createdAt" | "updatedAt">
+): Promise<Memory> {
+  const db = getDbInstance();
+  const id = crypto.randomUUID();
+  const now = new Date().toISOString();
+
+  const stmt = db.prepare(
+    "INSERT INTO memory (id, apiKeyId, sessionId, type, key, content, metadata, createdAt, updatedAt, expiresAt) " +
+      "VALUES (?, ?, ?, ?, ?, ?, ?, ?, ?, ?)"
+  );
+
+  stmt.run(
+    id,
+    memory.apiKeyId,
+    memory.sessionId,
+    memory.type,
+    memory.key,
+    memory.content,
+    JSON.stringify(memory.metadata),
+    now,
+    now,
+    memory.expiresAt?.toISOString() ?? null
+  );
+
+  const createdMemory: Memory = {
+    id,
+    apiKeyId: memory.apiKeyId,
+    sessionId: memory.sessionId,
+    type: memory.type,
+    key: memory.key,
+    content: memory.content,
+    metadata: memory.metadata,
+    createdAt: new Date(now),
+    updatedAt: new Date(now),
+    expiresAt: memory.expiresAt ?? null,
+  };
+
+  // Cache the newly created memory
+  invalidateMemoryCache(id);
+  evictIfNeeded(_memoryCache);
+  _memoryCache.set(id, { value: createdMemory, timestamp: Date.now() });
+
+  return createdMemory;
+}
+
+/**
+ * Get a memory by ID
+ */
+export async function getMemory(id: string): Promise<Memory | null> {
+  if (!id || typeof id !== "string") return null;
+
+  // Check cache first
+  const cached = _memoryCache.get(id);
+  if (cached && Date.now() - cached.timestamp < MEMORY_CACHE_TTL) {
+    return cached.value;
+  }
+
+  const db = getDbInstance();
+  const stmt = db.prepare("SELECT * FROM memory WHERE id = ?");
+  const row = stmt.get(id);
+
+  if (!row) {
+    // Cache negative result briefly to prevent repeated DB hits
+    evictIfNeeded(_memoryCache);
+    _memoryCache.set(id, { value: null, timestamp: Date.now() });
+    return null;
+  }
+
+  const memory: Memory = {
+    id: String(row.id),
+    apiKeyId: String(row.apiKeyId),
+    sessionId: String(row.sessionId),
+    type: row.type as MemoryType,
+    key: String(row.key),
+    content: String(row.content),
+    metadata: parseJSON(row.metadata),
+    createdAt: new Date(String(row.createdAt)),
+    updatedAt: new Date(String(row.updatedAt)),
+    expiresAt: row.expiresAt ? new Date(String(row.expiresAt)) : null,
+  };
+
+  // Cache the result
+  evictIfNeeded(_memoryCache);
+  _memoryCache.set(id, { value: memory, timestamp: Date.now() });
+
+  return memory;
+}
+
+/**
+ * Update a memory entry
+ */
+export async function updateMemory(
+  id: string,
+  updates: Partial<Omit<Memory, "id" | "createdAt">>
+): Promise<boolean> {
+  if (!id || typeof id !== "string") return false;
+
+  const db = getDbInstance();
+  const now = new Date().toISOString();
+
+  // Build dynamic update query
+  const fields: string[] = [];
+  const values: any[] = [];
+
+  if (updates.type !== undefined) {
+    fields.push("type = ?");
+    values.push(updates.type);
+  }
+  if (updates.key !== undefined) {
+    fields.push("key = ?");
+    values.push(updates.key);
+  }
+  if (updates.content !== undefined) {
+    fields.push("content = ?");
+    values.push(updates.content);
+  }
+  if (updates.metadata !== undefined) {
+    fields.push("metadata = ?");
+    values.push(JSON.stringify(updates.metadata));
+  }
+  if (updates.expiresAt !== undefined) {
+    fields.push("expiresAt = ?");
+    values.push(updates.expiresAt?.toISOString() ?? null);
+  }
+
+  // Always update the updatedAt timestamp
+  fields.push("updatedAt = ?");
+  values.push(now);
+
+  if (fields.length === 0) {
+    return false; // No updates to apply
+  }
+
+  values.push(id); // For WHERE clause
+
+  const stmt = db.prepare(`UPDATE memory SET ${fields.join(", ")} WHERE id = ?`);
+
+  const result = stmt.run(...values);
+
+  if (result.changes === 0) {
+    return false;
+  }
+
+  // Invalidate cache for this memory
+  invalidateMemoryCache(id);
+
+  return true;
+}
+
+/**
+ * Delete a memory by ID
+ */
+export async function deleteMemory(id: string): Promise<boolean> {
+  if (!id || typeof id !== "string") return false;
+
+  const db = getDbInstance();
+  const stmt = db.prepare("DELETE FROM memory WHERE id = ?");
+  const result = stmt.run(id);
+
+  if (result.changes === 0) {
+    return false;
+  }
+
+  // Invalidate cache for this memory
+  invalidateMemoryCache(id);
+
+  return true;
+}
+
+/**
+ * List memories with optional filtering
+ */
+export async function listMemories(filters: {
+  apiKeyId?: string;
+  type?: MemoryType;
+  sessionId?: string;
+  limit?: number;
+  offset?: number;
+}): Promise<Memory[]> {
+  const db = getDbInstance();
+
+  // Build dynamic query
+  let query = "SELECT * FROM memory";
+  const params: any[] = [];
+  const whereClauses: string[] = [];
+
+  if (filters.apiKeyId) {
+    whereClauses.push("apiKeyId = ?");
+    params.push(filters.apiKeyId);
+  }
+
+  if (filters.type) {
+    whereClauses.push("type = ?");
+    params.push(filters.type);
+  }
+
+  if (filters.sessionId) {
+    whereClauses.push("sessionId = ?");
+    params.push(filters.sessionId);
+  }
+
+  if (whereClauses.length > 0) {
+    query += " WHERE " + whereClauses.join(" AND ");
+  }
+
+  // Add ordering and pagination
+  query += " ORDER BY createdAt DESC";
+
+  if (filters.limit !== undefined) {
+    query += " LIMIT ?";
+    params.push(filters.limit);
+  }
+
+  if (filters.offset !== undefined) {
+    query += " OFFSET ?";
+    params.push(filters.offset);
+  }
+
+  const stmt = db.prepare(query);
+  const rows = stmt.all(...params);
+
+  return rows.map((row) => ({
+    id: String(row.id),
+    apiKeyId: String(row.apiKeyId),
+    sessionId: String(row.sessionId),
+    type: row.type as MemoryType,
+    key: String(row.key),
+    content: String(row.content),
+    metadata: parseJSON(row.metadata),
+    createdAt: new Date(String(row.createdAt)),
+    updatedAt: new Date(String(row.updatedAt)),
+    expiresAt: row.expiresAt ? new Date(String(row.expiresAt)) : null,
+  }));
+}
diff --git a/src/lib/memory/summarization.ts b/src/lib/memory/summarization.ts
new file mode 100644
index 0000000000..78277cb1d5
--- /dev/null
+++ b/src/lib/memory/summarization.ts
@@ -0,0 +1,99 @@
+import { Memory, MemoryType } from "./types";
+import { getDbInstance } from "../db/core";
+
+export interface SummarizationResult {
+  originalCount: number;
+  summarizedCount: number;
+  tokensSaved: number;
+}
+
+export async function summarizeMemories(
+  apiKeyId: string,
+  sessionId?: string,
+  maxTokens: number = 4000
+): Promise<SummarizationResult> {
+  const db = getDbInstance();
+
+  const whereClause = sessionId
+    ? "WHERE api_key_id = ? AND session_id = ?"
+    : "WHERE api_key_id = ?";
+  const params = sessionId ? [apiKeyId, sessionId] : [apiKeyId];
+
+  const memories = db
+    .prepare(`SELECT * FROM memories ${whereClause} ORDER BY created_at DESC`)
+    .all(...params) as any[];
+
+  if (memories.length === 0) {
+    return { originalCount: 0, summarizedCount: 0, tokensSaved: 0 };
+  }
+
+  let totalTokens = 0;
+  const toSummarize: Memory[] = [];
+  const toKeep: Memory[] = [];
+
+  for (const mem of memories) {
+    const tokens = estimateTokens(mem.content);
+    if (totalTokens + tokens <= maxTokens) {
+      toKeep.push({
+        id: mem.id,
+        apiKeyId: mem.api_key_id,
+        sessionId: mem.session_id,
+        type: mem.type as MemoryType,
+        key: mem.key,
+        content: mem.content,
+        metadata: mem.metadata ? JSON.parse(mem.metadata) : {},
+        createdAt: new Date(mem.created_at),
+        updatedAt: new Date(mem.updated_at),
+        expiresAt: mem.expires_at ? new Date(mem.expires_at) : null,
+      });
+      totalTokens += tokens;
+    } else {
+      toSummarize.push({
+        id: mem.id,
+        apiKeyId: mem.api_key_id,
+        sessionId: mem.session_id,
+        type: mem.type as MemoryType,
+        key: mem.key,
+        content: mem.content,
+        metadata: mem.metadata ? JSON.parse(mem.metadata) : {},
+        createdAt: new Date(mem.created_at),
+        updatedAt: new Date(mem.updated_at),
+        expiresAt: mem.expires_at ? new Date(mem.expires_at) : null,
+      });
+    }
+  }
+
+  const summarizedCount = toSummarize.length;
+  let tokensSaved = 0;
+
+  for (const mem of toSummarize) {
+    const summary = generateSummary(mem.content);
+    const oldTokens = estimateTokens(mem.content);
+    const newTokens = estimateTokens(summary);
+    tokensSaved += oldTokens - newTokens;
+
+    db.prepare("UPDATE memories SET content = ?, updated_at = ? WHERE id = ?").run(
+      summary,
+      new Date().toISOString(),
+      mem.id
+    );
+  }
+
+  return {
+    originalCount: memories.length,
+    summarizedCount,
+    tokensSaved,
+  };
+}
+
+function estimateTokens(text: string): number {
+  return Math.ceil(text.length / 4);
+}
+
+function generateSummary(content: string): string {
+  const sentences = content.split(/[.!?]+/).filter((s) => s.trim().length > 0);
+  if (sentences.length <= 3) {
+    return content;
+  }
+  return sentences.slice(0, 3).join(". ") + ".";
+}
diff --git a/src/lib/memory/types.ts b/src/lib/memory/types.ts
new file mode 100644
index 0000000000..f5f744f571
--- /dev/null
+++ b/src/lib/memory/types.ts
@@ -0,0 +1,41 @@
+// Memory system type definitions for OmniRoute
+// These types support the memory management system for AI agents
+
+/**
+ * Memory types for AI agent memory management system
+ */
+export enum MemoryType {
+  FACTUAL = "factual",
+  EPISODIC = "episodic",
+  PROCEDURAL = "procedural",
+  SEMANTIC = "semantic",
+}
+
+/**
+ * Memory interface representing individual memory entries
+ */
+export interface Memory {
+  id: string;
+  apiKeyId: string;
+  sessionId: string;
+  type: MemoryType;
+  key: string;
+  content: string;
+  metadata: Record<string, unknown>;
+  createdAt: Date;
+  updatedAt: Date;
+  expiresAt: Date | null;
+}
+
+/**
+ * Memory configuration interface for memory system settings
+ */
+export interface MemoryConfig {
+  enabled: boolean;
+  maxTokens: number;
+  retrievalStrategy: "exact" | "semantic" | "hybrid";
+  autoSummarize: boolean;
+  persistAcrossModels: boolean;
+  retentionDays: number;
+  scope: "session" | "apiKey" | "global";
+}
diff --git a/src/lib/skills/__tests__/integration.test.ts b/src/lib/skills/__tests__/integration.test.ts
new file mode 100644
index 0000000000..8d66aa444f
--- /dev/null
+++ b/src/lib/skills/__tests__/integration.test.ts
@@ -0,0 +1,47 @@
+import { describe, it, expect, beforeEach } from "vitest";
+import { retrieveMemories } from "../../memory/retrieval";
+import { createMemory, deleteMemory } from "../../memory/store";
+import { injectSkills } from "../injection";
+import { skillRegistry } from "../registry";
+import { skillExecutor } from "../executor";
+
+describe("Memory + Skills Integration", () => {
+  const apiKeyId = "test-api-key";
+
+  it("should retrieve and inject memories", async () => {
+    await createMemory({
+      apiKeyId,
+      type: "factual" as any,
+      key: "test-key",
+      content: "Test memory content",
+    });
+
+    const config = {
+      enabled: true,
+      maxTokens: 2000,
+      retrievalStrategy: "exact" as const,
+      autoSummarize: false,
+      persistAcrossModels: false,
+      retentionDays: 30,
+      scope: "apiKey" as const,
+    };
+
+    const memories = await retrieveMemories(apiKeyId, config);
+    expect(memories).toBeDefined();
+    expect(Array.isArray(memories)).toBe(true);
+  });
+
+  it("should register and list skills", async () => {
+    const skill = await skillRegistry.register({
+      name: "test-skill",
+      version: "1.0.0",
+      description: "Test skill",
+      schema: { input: {}, output: {} },
+      handler: "echo",
+      apiKeyId,
+    });
+
+    const skills = skillRegistry.list(apiKeyId);
+    expect(skills.length).toBeGreaterThan(0);
+  });
+});
diff --git a/src/lib/skills/a2a.ts b/src/lib/skills/a2a.ts
new file mode 100644
index 0000000000..9cf9e25496
--- /dev/null
+++ b/src/lib/skills/a2a.ts
@@ -0,0 +1,34 @@
+export const a2aMemorySkill = {
+  name: "memory_aware_routing",
+  version: "1.0.0",
+  description: "A2A skill for memory-aware request routing",
+  schema: {
+    input: {
+      type: "object",
+      properties: {
+        task: { type: "string" },
+        contextRequired: { type: "boolean" },
+      },
+      required: ["task"],
+    },
+    output: {
+      type: "object",
+      properties: {
+        recommendedProvider: { type: "string" },
+        reason: { type: "string" },
+      },
+    },
+  },
+  handler: async (input: any, context: any) => {
+    const { task, contextRequired = false } = input;
+    return {
+      recommendedProvider: "auto",
+      reason: "Memory-aware routing requires memories to be loaded",
+      contextUsed: contextRequired,
+    };
+  },
+};
+
+export function registerA2ASkill(registry: any): void {
+  registry.registerHandler("memory_aware_routing", a2aMemorySkill.handler);
+}
diff --git a/src/lib/skills/builtin/browser.ts b/src/lib/skills/builtin/browser.ts
new file mode 100644
index 0000000000..57b73cee33
--- /dev/null
+++ b/src/lib/skills/builtin/browser.ts
@@ -0,0 +1,35 @@
+import { SkillHandler } from "../types";
+
+export const browserSkill: SkillHandler = async (input, context) => {
+  const { action, ...params } = input as {
+    action: "navigate" | "click" | "type" | "screenshot" | "extract";
+    url?: string;
+    selector?: string;
+    text?: string;
+  };
+
+  switch (action) {
+    case "navigate":
+      return { success: true, action: "navigate", url: params.url, stub: true };
+    case "click":
+      return { success: true, action: "click", selector: params.selector, stub: true };
+    case "type":
+      return {
+        success: true,
+        action: "type",
+        selector: params.selector,
+        text: params.text,
+        stub: true,
+      };
+    case "screenshot":
+      return { success: true, action: "screenshot", stub: true };
+    case "extract":
+      return { success: true, action: "extract", selector: params.selector, data: {}, stub: true };
+    default:
+      throw new Error(`Unknown action: ${action}`);
+  }
+};
+
+export function registerBrowserSkill(executor: any): void {
+  executor.registerHandler("browser", browserSkill);
+}
diff --git a/src/lib/skills/builtins.ts b/src/lib/skills/builtins.ts
new file mode 100644
index 0000000000..969846a80f
--- /dev/null
+++ b/src/lib/skills/builtins.ts
@@ -0,0 +1,68 @@
+import { SkillHandler } from "./types";
+
+export const builtinSkills: Record<string, SkillHandler> = {
+  file_read: async (input, context) => {
+    const { path } = input as { path: string };
+    if (!path || typeof path !== "string") {
+      throw new Error("Missing required field: path");
+    }
+    return { success: true, path, content: "[File read stub]", context: context.apiKeyId };
+  },
+
+  file_write: async (input, context) => {
+    const { path, content } = input as { path: string; content: string };
+    if (!path || !content) {
+      throw new Error("Missing required fields: path, content");
+    }
+    return { success: true, path, bytesWritten: content.length, context: context.apiKeyId };
+  },
+
+  http_request: async (input, context) => {
+    const { url, method = "GET" } = input as { url: string; method?: string };
+    if (!url) {
+      throw new Error("Missing required field: url");
+    }
+    return { success: true, url, method, status: 200, context: context.apiKeyId };
+  },
+
+  web_search: async (input, context) => {
+    const { query, limit = 10 } = input as { query: string; limit?: number };
+    if (!query) {
+      throw new Error("Missing required field: query");
+    }
+    return {
+      success: true,
+      query,
+      results: [{ title: "Stub result", url: "https://example.com", snippet: "Stub" }],
+      context: context.apiKeyId,
+    };
+  },
+
+  eval_code: async (input, context) => {
+    const { code, language = "javascript" } = input as { code: string; language?: string };
+    if (!code) {
+      throw new Error("Missing required field: code");
+    }
+    return { success: true, language, output: "[Code execution stub]", context: context.apiKeyId };
+  },
+
+  execute_command: async (input, context) => {
+    const { command, args = [] } = input as { command: string; args?: string[] };
+    if (!command) {
+      throw new Error("Missing required field: command");
+    }
+    return {
+      success: true,
+      command,
+      args,
+      output: "[Command execution stub]",
+      context: context.apiKeyId,
+    };
+  },
+};
+
+export function registerBuiltinSkills(executor: any): void {
+  for (const [name, handler] of Object.entries(builtinSkills)) {
+    executor.registerHandler(name, handler);
+  }
+}
diff --git a/src/lib/skills/custom.ts b/src/lib/skills/custom.ts
new file mode 100644
index 0000000000..87ce1d65f6
--- /dev/null
+++ b/src/lib/skills/custom.ts
@@ -0,0 +1,41 @@
+import { skillRegistry } from "./registry";
+import { SkillCreateInputSchema } from "./schemas";
+
+export const CustomSkillSchema = SkillCreateInputSchema;
+
+export async function registerCustomSkill(data: {
+  name: string;
+  version?: string;
+  description?: string;
+  schema: { input: Record<string, unknown>; output: Record<string, unknown> };
+  handler: string;
+  apiKeyId: string;
+  enabled?: boolean;
+}): Promise<any> {
+  const parsed = SkillCreateInputSchema.parse(data);
+  return skillRegistry.register({
+    ...parsed,
+    apiKeyId: data.apiKeyId,
+  });
+}
+
+export function validateCustomSkill(data: unknown): { valid: boolean; errors?: string[] } {
+  const result = CustomSkillSchema.safeParse(data);
+  if (result.success) {
+    return { valid: true };
+  }
+  return {
+    valid: false,
+    errors: result.error.issues.map((e: any) => `${e.path.join(".")}: ${e.message}`),
+  };
+}
+
+export function listCustomSkills(apiKeyId: string): any[] {
+  return skillRegistry.list(apiKeyId);
+}
+
+export async function deleteCustomSkill(skillId: string, apiKeyId: string): Promise<boolean> {
+  const skill = skillRegistry.getSkill(skillId, apiKeyId);
+  if (!skill) return false;
+  return skillRegistry.unregister(skill.name, skill.version, apiKeyId);
+}
diff --git a/src/lib/skills/executor.ts b/src/lib/skills/executor.ts
new file mode 100644
index 0000000000..ace6a0110f
--- /dev/null
+++ b/src/lib/skills/executor.ts
@@ -0,0 +1,167 @@
+import { skillRegistry } from "./registry";
+import { SkillExecution, SkillStatus, SkillHandler } from "./types";
+import { getDbInstance } from "../db/core";
+import { randomUUID } from "crypto";
+
+class SkillExecutor {
+  private static instance: SkillExecutor;
+  private handlers: Map<string, SkillHandler> = new Map();
+  private timeout: number = 30000;
+  private maxRetries: number = 3;
+
+  private constructor() {}
+
+  static getInstance(): SkillExecutor {
+    if (!SkillExecutor.instance) {
+      SkillExecutor.instance = new SkillExecutor();
+    }
+    return SkillExecutor.instance;
+  }
+
+  registerHandler(name: string, handler: SkillHandler): void {
+    this.handlers.set(name, handler);
+  }
+
+  setTimeout(ms: number): void {
+    this.timeout = ms;
+  }
+
+  setMaxRetries(count: number): void {
+    this.maxRetries = count;
+  }
+
+  async execute(
+    skillName: string,
+    input: Record<string, unknown>,
+    context: { apiKeyId: string; sessionId?: string }
+  ): Promise<SkillExecution> {
+    const skill = skillRegistry.getSkill(skillName, context.apiKeyId);
+    if (!skill) {
+      throw new Error(`Skill not found: ${skillName}`);
+    }
+
+    if (!skill.enabled) {
+      throw new Error(`Skill is disabled: ${skillName}`);
+    }
+
+    const db = getDbInstance();
+    const executionId = randomUUID();
+    const startTime = Date.now();
+
+    try {
+      db.prepare(
+        `INSERT INTO skill_executions (id, skill_id, api_key_id, session_id, input, status, created_at)
+         VALUES (?, ?, ?, ?, ?, ?, ?)`
+      ).run(
+        executionId,
+        skill.id,
+        context.apiKeyId,
+        context.sessionId || null,
+        JSON.stringify(input),
+        SkillStatus.RUNNING,
+        new Date().toISOString()
+      );
+
+      const handler = this.handlers.get(skill.handler);
+      if (!handler) {
+        throw new Error(`Handler not found: ${skill.handler}`);
+      }
+
+      let output: Record<string, unknown> | null = null;
+      let errorMessage: string | null = null;
+      let status = SkillStatus.SUCCESS;
+
+      try {
+        const result = await this.executeWithTimeout(
+          handler(input, { apiKeyId: context.apiKeyId, sessionId: context.sessionId || "" })
+        );
+        output = result;
+      } catch (err) {
+        errorMessage = err instanceof Error ? err.message : String(err);
+        status = SkillStatus.ERROR;
+      }
+
+      const durationMs = Date.now() - startTime;
+
+      db.prepare(
+        `UPDATE skill_executions SET output = ?, status = ?, error_message = ?, duration_ms = ? WHERE id = ?`
+      ).run(output ? JSON.stringify(output) : null, status, errorMessage, durationMs, executionId);
+
+      return {
+        id: executionId,
+        skillId: skill.id,
+        apiKeyId: context.apiKeyId,
+        sessionId: context.sessionId || "",
+        input,
+        output,
+        status,
+        errorMessage,
+        durationMs,
+        createdAt: new Date(),
+      };
+    } catch (err) {
+      const durationMs = Date.now() - startTime;
+      const errorMessage = err instanceof Error ? err.message : String(err);
+
+      db.prepare(
+        `UPDATE skill_executions SET status = ?, error_message = ?, duration_ms = ? WHERE id = ?`
+      ).run(SkillStatus.ERROR, errorMessage, durationMs, executionId);
+
+      throw err;
+    }
+  }
+
+  private async executeWithTimeout<T>(promise: Promise<T>): Promise<T> {
+    return Promise.race([
+      promise,
+      new Promise<T>((_, reject) =>
+        setTimeout(() => reject(new Error("Skill execution timed out")), this.timeout)
+      ),
+    ]);
+  }
+
+  getExecution(executionId: string): SkillExecution | undefined {
+    const db = getDbInstance();
+    const row = db.prepare("SELECT * FROM skill_executions WHERE id = ?").get(executionId) as any;
+    if (!row) return undefined;
+
+    return {
+      id: row.id,
+      skillId: row.skill_id,
+      apiKeyId: row.api_key_id,
+      sessionId: row.session_id || "",
+      input: JSON.parse(row.input),
+      output: row.output ? JSON.parse(row.output) : null,
+      status: row.status as SkillStatus,
+      errorMessage: row.error_message,
+      durationMs: row.duration_ms,
+      createdAt: new Date(row.created_at),
+    };
+  }
+
+  listExecutions(apiKeyId?: string, limit: number = 50): SkillExecution[] {
+    const db = getDbInstance();
+    const rows = apiKeyId
+      ? db
+          .prepare(
+            "SELECT * FROM skill_executions WHERE api_key_id = ? ORDER BY created_at DESC LIMIT ?"
+          )
+          .all(apiKeyId, limit)
+      : db.prepare("SELECT * FROM skill_executions ORDER BY created_at DESC LIMIT ?").all(limit);
+
+    return (rows as any[]).map((row) => ({
+      id: row.id,
+      skillId: row.skill_id,
+      apiKeyId: row.api_key_id,
+      sessionId: row.session_id || "",
+      input: JSON.parse(row.input),
+      output: row.output ? JSON.parse(row.output) : null,
+      status: row.status as SkillStatus,
+      errorMessage: row.error_message,
+      durationMs: row.duration_ms,
+      createdAt: new Date(row.created_at),
+    }));
+  }
+}
+
+export const skillExecutor = SkillExecutor.getInstance();
diff --git a/src/lib/skills/hybrid.ts b/src/lib/skills/hybrid.ts
new file mode 100644
index 0000000000..c0833143ec
--- /dev/null
+++ b/src/lib/skills/hybrid.ts
@@ -0,0 +1,67 @@
+export type ExecutionMode = "direct" | "sandbox" | "hybrid";
+
+export interface HybridConfig {
+  defaultMode: ExecutionMode;
+  autoUpgrade: boolean;
+  maxDirectDuration: number;
+}
+
+const defaultHybridConfig: HybridConfig = {
+  defaultMode: "direct",
+  autoUpgrade: true,
+  maxDirectDuration: 5000,
+};
+
+export class HybridExecutor {
+  private config: HybridConfig;
+  private directExecutor: any;
+  private sandboxRunner: any;
+
+  constructor(config: Partial<HybridConfig> = {}) {
+    this.config = { ...defaultHybridConfig, ...config };
+  }
+
+  setConfig(config: Partial<HybridConfig>): void {
+    this.config = { ...this.config, ...config };
+  }
+
+  async execute(skillName: string, input: any, context: any): Promise<any> {
+    const startTime = Date.now();
+    const estimatedDuration = input.estimatedDuration || 0;
+
+    if (this.shouldUseSandbox(estimatedDuration)) {
+      return this.executeInSandbox(skillName, input, context);
+    }
+
+    try {
+      return await this.executeDirect(skillName, input, context);
+    } catch (err) {
+      if (this.config.autoUpgrade && this.isRetryable(err)) {
+        return this.executeInSandbox(skillName, input, context);
+      }
+      throw err;
+    }
+  }
+
+  private shouldUseSandbox(estimatedDuration: number): boolean {
+    if (this.config.defaultMode === "sandbox") return true;
+    if (this.config.defaultMode === "direct") return false;
+    return estimatedDuration > this.config.maxDirectDuration;
+  }
+
+  private async executeDirect(skillName: string, input: any, context: any): Promise<any> {
+    return { mode: "direct", result: {} };
+  }
+
+  private async executeInSandbox(skillName: string, input: any, context: any): Promise<any> {
+    return { mode: "sandbox", result: {} };
+  }
+
+  private isRetryable(err: any): boolean {
+    if (err?.message?.includes("timeout")) return true;
+    if (err?.message?.includes("memory")) return true;
+    return false;
+  }
+}
+
+export const hybridExecutor = new HybridExecutor();
diff --git a/src/lib/skills/injection.ts b/src/lib/skills/injection.ts
new file mode 100644
index 0000000000..134a1079b9
--- /dev/null
+++ b/src/lib/skills/injection.ts
@@ -0,0 +1,119 @@
+import { skillRegistry } from "./registry";
+import { Skill } from "./types";
+
+interface OpenAITool {
+  type: string;
+  function: {
+    name: string;
+    description: string;
+    parameters: Record<string, unknown>;
+  };
+}
+
+interface ClaudeTool {
+  name: string;
+  description: string;
+  input_schema: Record<string, unknown>;
+}
+
+interface GeminiTool {
+  name: string;
+  description: string;
+  parameters: Record<string, unknown>;
+}
+
+function skillToOpenAI(skill: Skill): OpenAITool {
+  return {
+    type: "function",
+    function: {
+      name: `${skill.name}@${skill.version}`,
+      description: skill.description,
+      parameters: skill.schema.input,
+    },
+  };
+}
+
+function skillToClaude(skill: Skill): ClaudeTool {
+  return {
+    name: `${skill.name}@${skill.version}`,
+    description: skill.description,
+    input_schema: skill.schema.input,
+  };
+}
+
+function skillToGemini(skill: Skill): GeminiTool {
+  return {
+    name: `${skill.name}@${skill.version}`,
+    description: skill.description,
+    parameters: skill.schema.input,
+  };
+}
+
+export interface InjectionOptions {
+  provider: "openai" | "anthropic" | "google" | "other";
+  existingTools?: unknown[];
+  apiKeyId: string;
+}
+
+export function injectSkills(options: InjectionOptions): unknown[] {
+  const skills = skillRegistry.list(options.apiKeyId).filter((s) => s.enabled);
+
+  if (skills.length === 0) {
+    return options.existingTools || [];
+  }
+
+  const injectedTools = skills.map((skill) => {
+    switch (options.provider) {
+      case "openai":
+        return skillToOpenAI(skill);
+      case "anthropic":
+        return skillToClaude(skill);
+      case "google":
+        return skillToGemini(skill);
+      default:
+        return skillToOpenAI(skill);
+    }
+  });
+
+  if (options.existingTools && options.existingTools.length > 0) {
+    return [...injectedTools, ...options.existingTools];
+  }
+
+  return injectedTools;
+}
+
+export function injectSkillTools(
+  messages: any[],
+  provider: "openai" | "anthropic" | "google" | "other",
+  apiKeyId: string
+): any[] {
+  const tools = injectSkills({ provider, apiKeyId });
+
+  if (tools.length === 0) {
+    return messages;
+  }
+
+  const lastMessage = messages[messages.length - 1];
+
+  if (lastMessage.role === "user" && !lastMessage.tools) {
+    return [...messages.slice(0, -1), { ...lastMessage, tools }];
+  }
+
+  return messages;
+}
+
+export function detectProvider(modelId: string): "openai" | "anthropic" | "google" | "other" {
+  const lower = modelId.toLowerCase();
+
+  if (lower.includes("gpt") || lower.includes("openai")) {
+    return "openai";
+  }
+  if (lower.includes("claude") || lower.includes("anthropic")) {
+    return "anthropic";
+  }
+  if (lower.includes("gemini") || lower.includes("google")) {
+    return "google";
+  }
+
+  return "other";
+}
diff --git a/src/lib/skills/interception.ts b/src/lib/skills/interception.ts
new file mode 100644
index 0000000000..510d9c7d12
--- /dev/null
+++ b/src/lib/skills/interception.ts
@@ -0,0 +1,135 @@
+import { skillExecutor } from "./executor";
+import { detectProvider } from "./injection";
+
+interface ToolCall {
+  id: string;
+  name: string;
+  arguments: Record<string, unknown>;
+}
+
+interface ExecutionContext {
+  apiKeyId: string;
+  sessionId: string;
+  requestId: string;
+}
+
+export async function interceptToolCalls(
+  toolCalls: ToolCall[],
+  context: ExecutionContext
+): Promise<{ id: string; result: unknown }[]> {
+  const results = await Promise.all(
+    toolCalls.map(async (call) => {
+      try {
+        const [name, version] = call.name.includes("@")
+          ? call.name.split("@")
+          : [call.name, "latest"];
+
+        const skillName = version === "latest" ? name : `${name}@${version}`;
+
+        const execution = await skillExecutor.execute(skillName, call.arguments, {
+          apiKeyId: context.apiKeyId,
+          sessionId: context.sessionId,
+        });
+
+        return {
+          id: call.id,
+          result: execution.output,
+        };
+      } catch (err) {
+        return {
+          id: call.id,
+          result: { error: err instanceof Error ? err.message : String(err) },
+        };
+      }
+    })
+  );
+
+  return results;
+}
+
+export function extractToolCalls(response: any, modelId: string): ToolCall[] {
+  const provider = detectProvider(modelId);
+
+  switch (provider) {
+    case "openai":
+      return (response.tool_calls || []).map((tc: any) => ({
+        id: tc.id || `call_${Date.now()}`,
+        name: tc.function?.name || "",
+        arguments: parseArguments(tc.function?.arguments || "{}"),
+      }));
+
+    case "anthropic":
+      return (response.content || [])
+        .filter((c: any) => c.type === "tool_use")
+        .map((tc: any) => ({
+          id: tc.id,
+          name: tc.name,
+          arguments: tc.input || {},
+        }));
+
+    case "google":
+      return (response.functionCalls || []).map((fc: any) => ({
+        id: `call_${Date.now()}_${Math.random().toString(36).slice(2)}`,
+        name: fc.name,
+        arguments: fc.args || {},
+      }));
+
+    default:
+      return [];
+  }
+}
+
+function parseArguments(args: string | Record<string, unknown>): Record<string, unknown> {
+  if (typeof args === "object") {
+    return args;
+  }
+
+  try {
+    return JSON.parse(args);
+  } catch {
+    return {};
+  }
+}
+
+export async function handleToolCallExecution(
+  response: any,
+  modelId: string,
+  context: ExecutionContext
+): Promise<any> {
+  const toolCalls = extractToolCalls(response, modelId);
+
+  if (toolCalls.length === 0) {
+    return response;
+  }
+
+  const results = await interceptToolCalls(toolCalls, context);
+
+  const provider = detectProvider(modelId);
+
+  switch (provider) {
+    case "openai":
+      return {
+        ...response,
+        tool_results: results.map((r) => ({
+          tool_call_id: r.id,
+          output: JSON.stringify(r.result),
+        })),
+      };
+
+    case "anthropic":
+      return {
+        ...response,
+        content: [
+          ...response.content,
+          ...results.map((r) => ({
+            type: "tool_result",
+            tool_use_id: r.id,
+            content: JSON.stringify(r.result),
+          })),
+        ],
+      };
+
+    default:
+      return response;
+  }
+}
diff --git a/src/lib/skills/registry.ts b/src/lib/skills/registry.ts
new file mode 100644
index 0000000000..f8988a1005
--- /dev/null
+++ b/src/lib/skills/registry.ts
@@ -0,0 +1,211 @@
+import { Skill, SkillSchema } from "./types";
+import { SkillCreateInputSchema } from "./schemas";
+import { getDbInstance } from "../db/core";
+import { randomUUID } from "crypto";
+
+class SkillRegistry {
+  private static instance: SkillRegistry;
+  private registeredSkills: Map<string, Skill> = new Map();
+  private versionCache: Map<string, Map<string, Skill>> = new Map();
+
+  private constructor() {}
+
+  static getInstance(): SkillRegistry {
+    if (!SkillRegistry.instance) {
+      SkillRegistry.instance = new SkillRegistry();
+    }
+    return SkillRegistry.instance;
+  }
+
+  async register(skillData: {
+    name: string;
+    version?: string;
+    description?: string;
+    schema: SkillSchema;
+    handler: string;
+    enabled?: boolean;
+    apiKeyId: string;
+  }): Promise<Skill> {
+    const parsed = SkillCreateInputSchema.parse(skillData);
+    const db = getDbInstance();
+    const id = randomUUID();
+    const now = new Date();
+
+    db.prepare(
+      `INSERT INTO skills (id, api_key_id, name, version, description, schema, handler, enabled, created_at, updated_at)
+       VALUES (?, ?, ?, ?, ?, ?, ?, ?, ?, ?)`
+    ).run(
+      id,
+      skillData.apiKeyId,
+      parsed.name,
+      parsed.version,
+      parsed.description || null,
+      JSON.stringify(parsed.schema),
+      parsed.handler,
+      parsed.enabled ? 1 : 0,
+      now.toISOString(),
+      now.toISOString()
+    );
+
+    const skill: Skill = {
+      id,
+      apiKeyId: skillData.apiKeyId,
+      name: parsed.name,
+      version: parsed.version,
+      description: parsed.description || "",
+      schema: parsed.schema,
+      handler: parsed.handler,
+      enabled: parsed.enabled,
+      createdAt: now,
+      updatedAt: now,
+    };
+
+    this.registeredSkills.set(`${parsed.name}@${parsed.version}`, skill);
+    this.updateVersionCache(skill);
+
+    return skill;
+  }
+
+  async unregister(name: string, version?: string, apiKeyId?: string): Promise<boolean> {
+    const db = getDbInstance();
+
+    if (version) {
+      const key = `${name}@${version}`;
+      const skill = this.registeredSkills.get(key);
+      if (skill && (!apiKeyId || skill.apiKeyId === apiKeyId)) {
+        db.prepare("DELETE FROM skills WHERE id = ?").run(skill.id);
+        this.registeredSkills.delete(key);
+        this.clearVersionCache(name);
+        return true;
+      }
+    } else {
+      const deleted = db
+        .prepare("DELETE FROM skills WHERE name = ? AND (? IS NULL OR api_key_id = ?)")
+        .run(name, apiKeyId || null, apiKeyId || null);
+
+      if (deleted.changes > 0) {
+        const keysToDelete = Array.from(this.registeredSkills.keys()).filter((k) =>
+          k.startsWith(`${name}@`)
+        );
+        keysToDelete.forEach((k) => this.registeredSkills.delete(k));
+        this.clearVersionCache(name);
+        return true;
+      }
+    }
+
+    return false;
+  }
+
+  list(apiKeyId?: string): Skill[] {
+    if (apiKeyId) {
+      return Array.from(this.registeredSkills.values()).filter((s) => s.apiKeyId === apiKeyId);
+    }
+    return Array.from(this.registeredSkills.values());
+  }
+
+  getSkill(name: string, apiKeyId?: string): Skill | undefined {
+    return this.registeredSkills.get(name);
+  }
+
+  getSkillVersions(name: string): Skill[] {
+    const cached = this.versionCache.get(name);
+    if (!cached) return [];
+    return Array.from(cached.values()).sort((a, b) => this.compareVersions(b.version, a.version));
+  }
+
+  resolveVersion(name: string, constraint: string, apiKeyId?: string): Skill | undefined {
+    const versions = this.getSkillVersions(name);
+    if (versions.length === 0) return undefined;
+
+    const operator = constraint.charAt(0);
+    const version = constraint.slice(1);
+
+    switch (operator) {
+      case "^":
+        return versions.find((s) => this.satisfies(s.version, version, "^"));
+      case "~":
+        return versions.find((s) => this.satisfies(s.version, version, "~"));
+      case ">":
+      case ">=":
+      case "<":
+      case "<=":
+      case "==":
+        return versions.find((s) => this.satisfies(s.version, version, operator));
+      default:
+        return versions.find((s) => s.version === constraint);
+    }
+  }
+
+  private satisfies(version: string, base: string, operator: string): boolean {
+    const [baseMajor, baseMinor, basePatch] = base.split(".").map(Number);
+    const [verMajor, verMinor, verPatch] = version.split(".").map(Number);
+
+    switch (operator) {
+      case "^":
+        return (
+          verMajor === baseMajor &&
+          (verMinor > baseMinor || (verMinor === baseMinor && verPatch >= basePatch))
+        );
+      case "~":
+        return verMajor === baseMajor && verMinor === baseMinor && verPatch >= basePatch;
+      case ">":
+        return this.compareVersions(version, base) > 0;
+      case ">=":
+        return this.compareVersions(version, base) >= 0;
+      case "<":
+        return this.compareVersions(version, base) < 0;
+      case "<=":
+        return this.compareVersions(version, base) <= 0;
+      case "==":
+        return version === base;
+      default:
+        return version === base;
+    }
+  }
+
+  private compareVersions(a: string, b: string): number {
+    const [aMajor, aMinor, aPatch] = a.split(".").map(Number);
+    const [bMajor, bMinor, bPatch] = b.split(".").map(Number);
+
+    if (aMajor !== bMajor) return aMajor - bMajor;
+    if (aMinor !== bMinor) return aMinor - bMinor;
+    return aPatch - bPatch;
+  }
+
+  private updateVersionCache(skill: Skill): void {
+    if (!this.versionCache.has(skill.name)) {
+      this.versionCache.set(skill.name, new Map());
+    }
+    this.versionCache.get(skill.name)!.set(skill.version, skill);
+  }
+
+  private clearVersionCache(name: string): void {
+    this.versionCache.delete(name);
+  }
+
+  async loadFromDatabase(apiKeyId?: string): Promise<void> {
+    const db = getDbInstance();
+    const rows = apiKeyId
+      ? db.prepare("SELECT * FROM skills WHERE api_key_id = ?").all(apiKeyId)
+      : db.prepare("SELECT * FROM skills").all();
+
+    for (const row of rows as any[]) {
+      const skill: Skill = {
+        id: row.id,
+        apiKeyId: row.api_key_id,
+        name: row.name,
+        version: row.version,
+        description: row.description || "",
+        schema: JSON.parse(row.schema),
+        handler: row.handler,
+        enabled: row.enabled === 1,
+        createdAt: new Date(row.created_at),
+        updatedAt: new Date(row.updated_at),
+      };
+      this.registeredSkills.set(`${skill.name}@${skill.version}`, skill);
+      this.updateVersionCache(skill);
+    }
+  }
+}
+
+export const skillRegistry = SkillRegistry.getInstance();
diff --git a/src/lib/skills/sandbox.ts b/src/lib/skills/sandbox.ts
new file mode 100644
index 0000000000..3abefb8924
--- /dev/null
+++ b/src/lib/skills/sandbox.ts
@@ -0,0 +1,160 @@
+import { spawn, ChildProcess } from "child_process";
+import { randomUUID } from "crypto";
+
+interface SandboxConfig {
+  cpuLimit: number;
+  memoryLimit: number;
+  timeout: number;
+  networkEnabled: boolean;
+  readOnly: boolean;
+}
+
+interface SandboxResult {
+  id: string;
+  exitCode: number | null;
+  stdout: string;
+  stderr: string;
+  duration: number;
+  killed: boolean;
+}
+
+const DEFAULT_CONFIG: SandboxConfig = {
+  cpuLimit: 100,
+  memoryLimit: 256,
+  timeout: 30000,
+  networkEnabled: false,
+  readOnly: true,
+};
+
+class SandboxRunner {
+  private static instance: SandboxRunner;
+  private runningContainers: Map<string, ChildProcess> = new Map();
+  private config: SandboxConfig;
+
+  private constructor(config: Partial<SandboxConfig> = {}) {
+    this.config = { ...DEFAULT_CONFIG, ...config };
+  }
+
+  static getInstance(config?: Partial<SandboxConfig>): SandboxRunner {
+    if (!SandboxRunner.instance) {
+      SandboxRunner.instance = new SandboxRunner(config);
+    }
+    return SandboxRunner.instance;
+  }
+
+  setConfig(config: Partial<SandboxConfig>): void {
+    this.config = { ...this.config, ...config };
+  }
+
+  async run(
+    image: string,
+    command: string[],
+    env: Record<string, string> = {}
+  ): Promise<SandboxResult> {
+    const sandboxId = randomUUID();
+    const startTime = Date.now();
+
+    const dockerArgs = [
+      "run",
+      "--rm",
+      "--name",
+      `omniroute-sandbox-${sandboxId}`,
+      "--cpus",
+      `${this.config.cpuLimit / 1000}`,
+      "--memory",
+      `${this.config.memoryLimit}m`,
+      "--network",
+      this.config.networkEnabled ? "bridge" : "none",
+      "--read-only",
+      this.config.readOnly.toString(),
+      "--cap-add",
+      "SYS_TIME",
+      "--pids-limit",
+      "100",
+      image,
+      ...command,
+    ];
+
+    return new Promise((resolve) => {
+      const proc = spawn("docker", dockerArgs, {
+        env: { ...process.env, ...env },
+        stdio: ["ignore", "pipe", "pipe"],
+      });
+
+      this.runningContainers.set(sandboxId, proc);
+
+      let stdout = "";
+      let stderr = "";
+
+      proc.stdout?.on("data", (data) => {
+        stdout += data.toString();
+      });
+
+      proc.stderr?.on("data", (data) => {
+        stderr += data.toString();
+      });
+
+      const timeoutId = setTimeout(() => {
+        this.kill(sandboxId);
+      }, this.config.timeout);
+
+      proc.on("close", (code) => {
+        clearTimeout(timeoutId);
+        this.runningContainers.delete(sandboxId);
+
+        resolve({
+          id: sandboxId,
+          exitCode: code,
+          stdout,
+          stderr,
+          duration: Date.now() - startTime,
+          killed: code === null,
+        });
+      });
+
+      proc.on("error", (err) => {
+        clearTimeout(timeoutId);
+        this.runningContainers.delete(sandboxId);
+
+        resolve({
+          id: sandboxId,
+          exitCode: -1,
+          stdout,
+          stderr: err.message,
+          duration: Date.now() - startTime,
+          killed: false,
+        });
+      });
+    });
+  }
+
+  kill(sandboxId: string): boolean {
+    const proc = this.runningContainers.get(sandboxId);
+    if (proc) {
+      proc.kill("SIGTERM");
+      this.runningContainers.delete(sandboxId);
+      spawn("docker", ["kill", `omniroute-sandbox-${sandboxId}`], { stdio: "ignore" });
+      return true;
+    }
+    return false;
+  }
+
+  killAll(): void {
+    for (const [id, proc] of this.runningContainers) {
+      proc.kill("SIGTERM");
+      spawn("docker", ["kill", `omniroute-sandbox-${id}`], { stdio: "ignore" });
+    }
+    this.runningContainers.clear();
+  }
+
+  isRunning(sandboxId: string): boolean {
+    return this.runningContainers.has(sandboxId);
+  }
+
+  getRunningCount(): number {
+    return this.runningContainers.size;
+  }
+}
+
+export const sandboxRunner = SandboxRunner.getInstance();
+export type { SandboxConfig, SandboxResult };
diff --git a/src/lib/skills/schemas.ts b/src/lib/skills/schemas.ts
new file mode 100644
index 0000000000..6c4621beb9
--- /dev/null
+++ b/src/lib/skills/schemas.ts
@@ -0,0 +1,47 @@
+import { z } from "zod";
+import { SkillStatus, SkillMode } from "./types";
+
+export const SkillSchema = z.object({
+  input: z.record(z.string(), z.unknown()),
+  output: z.record(z.string(), z.unknown()),
+});
+
+export const SkillCreateInputSchema = z
+  .object({
+    name: z.string().min(1).max(100),
+    version: z
+      .string()
+      .regex(/^\d+\.\d+\.\d+$/)
+      .default("1.0.0"),
+    description: z.string().max(500).optional(),
+    schema: SkillSchema,
+    handler: z.string().min(1),
+    enabled: z.boolean().default(true),
+  })
+  .strict();
+
+export const SkillUpdateInputSchema = z
+  .object({
+    name: z.string().min(1).max(100).optional(),
+    version: z
+      .string()
+      .regex(/^\d+\.\d+\.\d+$/)
+      .optional(),
+    description: z.string().max(500).optional(),
+    schema: SkillSchema.optional(),
+    handler: z.string().min(1).optional(),
+    enabled: z.boolean().optional(),
+  })
+  .strict();
+
+export const SkillConfigSchema = z.object({
+  enabled: z.boolean(),
+  mode: z.nativeEnum(SkillMode),
+  allowedSkills: z.array(z.string()),
+  timeout: z.number().int().positive().default(30000),
+  maxRetries: z.number().int().min(0).default(3),
+});
+
+export type SkillCreateInput = z.infer<typeof SkillCreateInputSchema>;
+export type SkillUpdateInput = z.infer<typeof SkillUpdateInputSchema>;
+export type SkillConfig = z.infer<typeof SkillConfigSchema>;
diff --git a/src/lib/skills/types.ts b/src/lib/skills/types.ts
new file mode 100644
index 0000000000..9bc6e6225d
--- /dev/null
+++ b/src/lib/skills/types.ts
@@ -0,0 +1,57 @@
+export enum SkillStatus {
+  PENDING = "pending",
+  RUNNING = "running",
+  SUCCESS = "success",
+  ERROR = "error",
+  TIMEOUT = "timeout",
+}
+
+export enum SkillMode {
+  AUTO = "auto",
+  MANUAL = "manual",
+  HYBRID = "hybrid",
+}
+
+export interface SkillSchema {
+  input: Record<string, unknown>;
+  output: Record<string, unknown>;
+}
+
+export interface Skill {
+  id: string;
+  apiKeyId: string;
+  name: string;
+  version: string;
+  description: string;
+  schema: SkillSchema;
+  handler: string;
+  enabled: boolean;
+  createdAt: Date;
+  updatedAt: Date;
+}
+
+export interface SkillExecution {
+  id: string;
+  skillId: string;
+  apiKeyId: string;
+  sessionId: string;
+  input: Record<string, unknown>;
+  output: Record<string, unknown> | null;
+  status: SkillStatus;
+  errorMessage: string | null;
+  durationMs: number | null;
+  createdAt: Date;
+}
+
+export interface SkillConfig {
+  enabled: boolean;
+  mode: SkillMode;
+  allowedSkills: string[];
+  timeout: number;
+  maxRetries: number;
+}
+
+export type SkillHandler = (
+  input: Record<string, unknown>,
+  context: { apiKeyId: string; sessionId: string }
+) => Promise<Record<string, unknown>>;
diff --git a/tests/unit/memory-extraction.test.mjs b/tests/unit/memory-extraction.test.mjs
new file mode 100644
index 0000000000..9355d5fadf
--- /dev/null
+++ b/tests/unit/memory-extraction.test.mjs
@@ -0,0 +1,169 @@
+import test from "node:test";
+import assert from "node:assert/strict";
+
+const { extractFactsFromText, extractFacts } = await import("../../src/lib/memory/extraction.ts");
+
+// ─── extractFactsFromText: Preferences ─────────────────────────────────────
+
+test("extractFactsFromText: detects 'I prefer' preference", () => {
+  const facts = extractFactsFromText("I prefer dark mode in my editor.");
+  const pref = facts.find((f) => f.category === "preference");
+  assert.ok(pref, "Should extract a preference fact");
+  assert.ok(pref.content.toLowerCase().includes("dark mode"));
+  assert.equal(pref.type, "factual");
+});
+
+test("extractFactsFromText: detects 'I like' preference", () => {
+  const facts = extractFactsFromText("I like TypeScript over JavaScript.");
+  const pref = facts.find((f) => f.category === "preference");
+  assert.ok(pref);
+  assert.ok(pref.content.toLowerCase().includes("typescript"));
+});
+
+test("extractFactsFromText: detects 'my favorite is' preference", () => {
+  const facts = extractFactsFromText("My favorite is VS Code for editing.");
+  const pref = facts.find((f) => f.category === "preference");
+  assert.ok(pref);
+  assert.ok(pref.content.toLowerCase().includes("vs code"));
+});
+
+test("extractFactsFromText: detects negative preference (I don't like)", () => {
+  const facts = extractFactsFromText("I don't like JavaScript callbacks.");
+  const pref = facts.find((f) => f.category === "preference");
+  assert.ok(pref);
+  assert.ok(pref.content.toLowerCase().includes("javascript callbacks"));
+});
+
+// ─── extractFactsFromText: Decisions ─────────────────────────────────────────
+
+test("extractFactsFromText: detects 'I'll use' decision", () => {
+  const facts = extractFactsFromText("I'll use PostgreSQL for this project.");
+  const dec = facts.find((f) => f.category === "decision");
+  assert.ok(dec, "Should extract a decision fact");
+  assert.ok(dec.content.toLowerCase().includes("postgresql"));
+  assert.equal(dec.type, "episodic");
+});
+
+test("extractFactsFromText: detects 'I chose' decision", () => {
+  const facts = extractFactsFromText("I chose React for the frontend.");
+  const dec = facts.find((f) => f.category === "decision");
+  assert.ok(dec);
+  assert.ok(dec.content.toLowerCase().includes("react"));
+});
+
+test("extractFactsFromText: detects 'I decided to' decision", () => {
+  const facts = extractFactsFromText("I decided to migrate to Docker.");
+  const dec = facts.find((f) => f.category === "decision");
+  assert.ok(dec);
+  assert.ok(dec.content.toLowerCase().includes("migrate to docker"));
+});
+
+test("extractFactsFromText: detects 'I went with' decision", () => {
+  const facts = extractFactsFromText("I went with Tailwind for styling.");
+  const dec = facts.find((f) => f.category === "decision");
+  assert.ok(dec);
+  assert.ok(dec.content.toLowerCase().includes("tailwind"));
+});
+
+// ─── extractFactsFromText: Patterns ─────────────────────────────────────────
+
+test("extractFactsFromText: detects 'I usually' pattern", () => {
+  const facts = extractFactsFromText("I usually start with tests first.");
+  const pat = facts.find((f) => f.category === "pattern");
+  assert.ok(pat, "Should extract a pattern fact");
+  assert.ok(pat.content.toLowerCase().includes("start with tests"));
+  assert.equal(pat.type, "factual");
+});
+
+test("extractFactsFromText: detects 'I always' pattern", () => {
+  const facts = extractFactsFromText("I always use ESLint in my projects.");
+  const pat = facts.find((f) => f.category === "pattern");
+  assert.ok(pat);
+  assert.ok(pat.content.toLowerCase().includes("eslint"));
+});
+
+test("extractFactsFromText: detects 'I never' pattern", () => {
+  const facts = extractFactsFromText("I never commit directly to main.");
+  const pat = facts.find((f) => f.category === "pattern");
+  assert.ok(pat);
+  assert.ok(pat.content.toLowerCase().includes("commit directly to main"));
+});
+
+test("extractFactsFromText: detects 'I tend to' pattern", () => {
+  const facts = extractFactsFromText("I tend to use functional components.");
+  const pat = facts.find((f) => f.category === "pattern");
+  assert.ok(pat);
+  assert.ok(pat.content.toLowerCase().includes("functional components"));
+});
+
+// ─── extractFactsFromText: Multiple facts ───────────────────────────────────
+
+test("extractFactsFromText: extracts multiple facts from one response", () => {
+  const text =
+    "I prefer TypeScript. I'll use Next.js for this project. I usually write tests first.";
+  const facts = extractFactsFromText(text);
+  assert.ok(facts.length >= 3, `Expected at least 3 facts, got ${facts.length}`);
+
+  const categories = facts.map((f) => f.category);
+  assert.ok(categories.includes("preference"));
+  assert.ok(categories.includes("decision"));
+  assert.ok(categories.includes("pattern"));
+});
+
+test("extractFactsFromText: deduplicates identical patterns", () => {
+  const text = "I prefer vim. I prefer vim.";
+  const facts = extractFactsFromText(text);
+  const prefs = facts.filter((f) => f.category === "preference" && f.content.includes("vim"));
+  assert.equal(prefs.length, 1, "Duplicate facts should be deduplicated");
+});
+
+// ─── extractFactsFromText: Edge cases ───────────────────────────────────────
+
+test("extractFactsFromText: returns empty array for empty string", () => {
+  assert.deepEqual(extractFactsFromText(""), []);
+});
+
+test("extractFactsFromText: returns empty array for null", () => {
+  assert.deepEqual(extractFactsFromText(null), []);
+});
+
+test("extractFactsFromText: returns empty array for unrelated text", () => {
+  const facts = extractFactsFromText("The sky is blue. Water is wet. 2 + 2 = 4.");
+  assert.deepEqual(facts, []);
+});
+
+test("extractFactsFromText: produces stable keys", () => {
+  const facts = extractFactsFromText("I prefer dark mode.");
+  assert.ok(facts.length > 0);
+  assert.ok(
+    facts[0].key.startsWith("preference:"),
+    `Key should start with category: ${facts[0].key}`
+  );
+});
+
+test("extractFactsFromText: truncates very long matches", () => {
+  const longContent = "a".repeat(600);
+  const facts = extractFactsFromText(`I prefer ${longContent}.`);
+  if (facts.length > 0) {
+    assert.ok(facts[0].content.length <= 500, "Content should be capped at 500 chars");
+  }
+});
+
+// ─── extractFacts: non-blocking behavior ───────────────────────────────────
+
+test("extractFacts: returns immediately (non-blocking)", () => {
+  let called = false;
+  const start = Date.now();
+
+  extractFacts("I prefer dark mode.", "key-123", "session-456");
+
+  const elapsed = Date.now() - start;
+  assert.ok(elapsed < 50, `extractFacts should return in <50ms, took ${elapsed}ms`);
+});
+
+test("extractFacts: does not throw on empty inputs", () => {
+  assert.doesNotThrow(() => extractFacts("", "key-123", "session-456"));
+  assert.doesNotThrow(() => extractFacts("I prefer vim.", "", "session-456"));
+  assert.doesNotThrow(() => extractFacts("I prefer vim.", "key-123", ""));
+  assert.doesNotThrow(() => extractFacts(null, "key-123", "session-456"));
+});