diff --git a/codex-rs/app-server-protocol/schema/precomputed/app-server-exports-stable.json.zst b/codex-rs/app-server-protocol/schema/precomputed/app-server-exports-stable.json.zst
index 6c39f60fd6..bec977fae9 100644
Binary files a/codex-rs/app-server-protocol/schema/precomputed/app-server-exports-stable.json.zst and b/codex-rs/app-server-protocol/schema/precomputed/app-server-exports-stable.json.zst differ
diff --git a/codex-rs/codex-mcp/src/binding.rs b/codex-rs/codex-mcp/src/binding.rs
index c6d79fea0d..4fbe33a433 100644
--- a/codex-rs/codex-mcp/src/binding.rs
+++ b/codex-rs/codex-mcp/src/binding.rs
@@ -268,6 +268,18 @@ impl PreparedMcpCall {
             .tool_approval_mode(&self.tool_info.tool.name)
     }
 
+    /// Returns the explicit output budget captured with this call's effective server config.
+    pub fn output_token_limit(&self) -> Option<usize> {
+        self.config
+            .mcp_server_catalog
+            .server(&self.server_name)?
+            .config()
+            .tools
+            .get(self.tool_info.tool.name.as_ref())?
+            .output_token_limit
+            .map(std::num::NonZeroUsize::get)
+    }
+
     pub fn plugin_id(&self) -> Option<&str> {
         self.plugin_id.as_deref()
     }
diff --git a/codex-rs/codex-mcp/src/catalog_tests.rs b/codex-rs/codex-mcp/src/catalog_tests.rs
index ef41e110a8..896b2d4522 100644
--- a/codex-rs/codex-mcp/src/catalog_tests.rs
+++ b/codex-rs/codex-mcp/src/catalog_tests.rs
@@ -51,6 +51,7 @@ fn server(url: &str) -> McpServerConfig {
             "read".to_string(),
             McpServerToolConfig {
                 approval_mode: Some(AppToolApproval::Approve),
+                ..Default::default()
             },
         )]),
     }
diff --git a/codex-rs/codex-mcp/src/connection_manager_tests.rs b/codex-rs/codex-mcp/src/connection_manager_tests.rs
index ee20c57598..8388d49c73 100644
--- a/codex-rs/codex-mcp/src/connection_manager_tests.rs
+++ b/codex-rs/codex-mcp/src/connection_manager_tests.rs
@@ -3966,6 +3966,7 @@ fn server_metadata_preserves_tool_approval_policy() {
         "search".to_string(),
         McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Approve),
+            ..Default::default()
         },
     );
     let metadata = McpServerMetadata::from(&EffectiveMcpServer::configured(config));
diff --git a/codex-rs/config/src/mcp_types.rs b/codex-rs/config/src/mcp_types.rs
index 4716f03494..5d18433be1 100644
--- a/codex-rs/config/src/mcp_types.rs
+++ b/codex-rs/config/src/mcp_types.rs
@@ -3,6 +3,7 @@
 use std::borrow::Cow;
 use std::collections::HashMap;
 use std::fmt;
+use std::num::NonZeroUsize;
 use std::time::Duration;
 
 use base64::Engine;
@@ -71,13 +72,24 @@ impl fmt::Display for McpServerDisabledReason {
     }
 }
 
-/// Per-tool approval settings for a single MCP server tool.
+/// Per-tool settings for a single MCP server tool.
 #[derive(Serialize, Deserialize, Debug, Clone, PartialEq, Eq, Default, JsonSchema)]
 #[schemars(deny_unknown_fields)]
 pub struct McpServerToolConfig {
     /// Approval mode for this tool.
     #[serde(default, skip_serializing_if = "Option::is_none")]
     pub approval_mode: Option<AppToolApproval>,
+
+    /// Token budget for this tool's output, before the standard 20% serialization allowance.
+    #[serde(default, skip_serializing_if = "Option::is_none")]
+    pub output_token_limit: Option<NonZeroUsize>,
+}
+
+impl McpServerToolConfig {
+    /// Applies the stricter explicit output budget without changing approval policy.
+    pub fn restrict_output_token_limit(&mut self, limit: Option<NonZeroUsize>) {
+        self.output_token_limit = self.output_token_limit.into_iter().chain(limit).min();
+    }
 }
 
 #[derive(Serialize, Deserialize, Debug, Clone, PartialEq, Eq, JsonSchema)]
@@ -250,7 +262,7 @@ pub struct McpServerConfig {
     #[serde(default, skip_serializing_if = "Option::is_none")]
     pub oauth_resource: Option<String>,
 
-    /// Per-tool approval settings keyed by tool name.
+    /// Per-tool settings keyed by tool name.
     #[serde(default, skip_serializing_if = "HashMap::is_empty")]
     pub tools: HashMap<String, McpServerToolConfig>,
 }
diff --git a/codex-rs/config/src/mcp_types_tests.rs b/codex-rs/config/src/mcp_types_tests.rs
index d0aafaf54d..f7a70787c5 100644
--- a/codex-rs/config/src/mcp_types_tests.rs
+++ b/codex-rs/config/src/mcp_types_tests.rs
@@ -480,6 +480,7 @@ fn deserialize_server_config_with_default_tool_approval_mode() {
 
             [tools.search]
             approval_mode = "prompt"
+            output_token_limit = 30000
         "#,
     )
     .expect("should deserialize default tool approval mode");
@@ -492,17 +493,31 @@ fn deserialize_server_config_with_default_tool_approval_mode() {
         cfg.tools.get("search"),
         Some(&McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Prompt),
+            output_token_limit: std::num::NonZeroUsize::new(30_000),
         })
     );
 
     let serialized = toml::to_string(&cfg).expect("should serialize MCP config");
     assert!(serialized.contains("default_tools_approval_mode = \"approve\""));
+    assert!(serialized.contains("output_token_limit = 30000"));
 
     let round_tripped: McpServerConfig =
         toml::from_str(&serialized).expect("should deserialize serialized MCP config");
     assert_eq!(round_tripped, cfg);
 }
 
+#[test]
+fn deserialize_rejects_nonpositive_mcp_tool_output_limits() {
+    for output_token_limit in [0, -1] {
+        let config = format!(
+            "command = \"echo\"\n[tools.search]\noutput_token_limit = {output_token_limit}\n"
+        );
+        let error = toml::from_str::<McpServerConfig>(&config)
+            .expect_err("MCP tool output limit must be positive");
+        assert!(error.to_string().contains("output_token_limit"));
+    }
+}
+
 #[test]
 fn serialize_round_trips_server_config_with_parallel_tool_calls() {
     let cfg: McpServerConfig = toml::from_str(
diff --git a/codex-rs/config/src/types.rs b/codex-rs/config/src/types.rs
index 4e01557be5..2eb73e577a 100644
--- a/codex-rs/config/src/types.rs
+++ b/codex-rs/config/src/types.rs
@@ -879,7 +879,7 @@ pub struct PluginMcpServerConfig {
     #[serde(default, skip_serializing_if = "Option::is_none")]
     pub disabled_tools: Option<Vec<String>>,
 
-    /// Per-tool approval settings keyed by tool name.
+    /// Per-tool policy settings keyed by tool name.
     #[serde(default, skip_serializing_if = "HashMap::is_empty")]
     pub tools: HashMap<String, McpServerToolConfig>,
 }
diff --git a/codex-rs/core-plugins/src/loader.rs b/codex-rs/core-plugins/src/loader.rs
index 0c6ce406b6..752795e668 100644
--- a/codex-rs/core-plugins/src/loader.rs
+++ b/codex-rs/core-plugins/src/loader.rs
@@ -974,6 +974,7 @@ fn apply_plugin_mcp_server_policy(config: &mut McpServerConfig, policy: &PluginM
         if let Some(approval_mode) = tool_policy.approval_mode {
             tool_config.approval_mode = Some(approval_mode);
         }
+        tool_config.restrict_output_token_limit(tool_policy.output_token_limit);
     }
 }
 
@@ -1449,7 +1450,7 @@ pub fn apply_configured_plugin_mcp_server_policies(
                 }
             }
             for (tool_name, tool_policy) in &policy.tools {
-                if tool_policy.approval_mode.is_some() {
+                if tool_policy.approval_mode.is_some() || tool_policy.output_token_limit.is_some() {
                     server.tools.entry(tool_name.clone()).or_default();
                 }
             }
@@ -1467,6 +1468,12 @@ pub fn apply_configured_plugin_mcp_server_policies(
                             .restrict_to(approval_mode),
                     );
                 }
+                tool_config.restrict_output_token_limit(
+                    policy
+                        .tools
+                        .get(tool_name)
+                        .and_then(|tool_policy| tool_policy.output_token_limit),
+                );
             }
         }
     }
diff --git a/codex-rs/core-plugins/src/manager_tests.rs b/codex-rs/core-plugins/src/manager_tests.rs
index 008ada15f4..8e1bf449ef 100644
--- a/codex-rs/core-plugins/src/manager_tests.rs
+++ b/codex-rs/core-plugins/src/manager_tests.rs
@@ -1113,7 +1113,7 @@ async fn load_plugins_applies_plugin_mcp_server_policy() {
       "default_tools_approval_mode": "prompt",
       "enabled_tools": ["read", "search"],
       "tools": {
-        "search": { "approval_mode": "prompt" }
+        "search": { "approval_mode": "prompt", "output_token_limit": 8000 }
       }
     }
   }
@@ -1134,6 +1134,7 @@ disabled_tools = ["delete"]
 
 [plugins."sample@test".mcp_servers.sample.tools.search]
 approval_mode = "approve"
+output_token_limit = 12000
 "#;
 
     let outcome =
@@ -1154,6 +1155,7 @@ approval_mode = "approve"
         server.tools.get("search"),
         Some(&McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Approve),
+            output_token_limit: std::num::NonZeroUsize::new(8_000),
         })
     );
 }
diff --git a/codex-rs/core/config.schema.json b/codex-rs/core/config.schema.json
index 1d8a9f4e1f..9b453c0db9 100644
--- a/codex-rs/core/config.schema.json
+++ b/codex-rs/core/config.schema.json
@@ -1966,7 +1966,7 @@
     },
     "McpServerToolConfig": {
       "additionalProperties": false,
-      "description": "Per-tool approval settings for a single MCP server tool.",
+      "description": "Per-tool settings for a single MCP server tool.",
       "properties": {
         "approval_mode": {
           "allOf": [
@@ -1975,6 +1975,12 @@
             }
           ],
           "description": "Approval mode for this tool."
+        },
+        "output_token_limit": {
+          "description": "Token budget for this tool's output, before the standard 20% serialization allowance.",
+          "format": "uint",
+          "minimum": 1.0,
+          "type": "integer"
         }
       },
       "type": "object"
@@ -2990,7 +2996,7 @@
           "additionalProperties": {
             "$ref": "#/definitions/McpServerToolConfig"
           },
-          "description": "Per-tool approval settings keyed by tool name.",
+          "description": "Per-tool policy settings keyed by tool name.",
           "type": "object"
         }
       },
diff --git a/codex-rs/core/src/compact_remote_v2.rs b/codex-rs/core/src/compact_remote_v2.rs
index 331751c716..adc4b36c0d 100644
--- a/codex-rs/core/src/compact_remote_v2.rs
+++ b/codex-rs/core/src/compact_remote_v2.rs
@@ -882,6 +882,7 @@ mod tests {
                     None,
                     Some(CodexHarnessMetadata {
                         client_authored: true,
+                        ..Default::default()
                     }),
                     Some(CodexHarnessMetadata::default()),
                     None,
@@ -905,6 +906,7 @@ mod tests {
                         item: client.clone(),
                         metadata: Some(CodexHarnessMetadata {
                             client_authored: true,
+                            ..Default::default()
                         }),
                     },
                 );
diff --git a/codex-rs/core/src/compact_remote_v2_image_budget_tests.rs b/codex-rs/core/src/compact_remote_v2_image_budget_tests.rs
index 30f44b952e..ffc3a6f85a 100644
--- a/codex-rs/core/src/compact_remote_v2_image_budget_tests.rs
+++ b/codex-rs/core/src/compact_remote_v2_image_budget_tests.rs
@@ -147,6 +147,7 @@ fn image_treatment_preserves_client_developer_boundary_behavior() {
         item,
         metadata: Some(CodexHarnessMetadata {
             client_authored: true,
+            ..Default::default()
         }),
     };
     for max_tokens in [1871, 1879, 1880, 1950, 2200] {
diff --git a/codex-rs/core/src/config/config_tests.rs b/codex-rs/core/src/config/config_tests.rs
index 3a4554456f..113686e856 100644
--- a/codex-rs/core/src/config/config_tests.rs
+++ b/codex-rs/core/src/config/config_tests.rs
@@ -6773,6 +6773,7 @@ approval_mode = "approve"
         server.tools.get("search"),
         Some(&McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Approve),
+            ..Default::default()
         })
     );
 }
@@ -6816,6 +6817,7 @@ approval_mode = "approve"
         tool,
         &McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Approve),
+            ..Default::default()
         }
     );
 }
diff --git a/codex-rs/core/src/config/edit.rs b/codex-rs/core/src/config/edit.rs
index 6d13d9a755..52447014fe 100644
--- a/codex-rs/core/src/config/edit.rs
+++ b/codex-rs/core/src/config/edit.rs
@@ -314,7 +314,7 @@ impl ConfigDocument {
                 &[NOTICE_TABLE_KEY, "model_migrations", from.as_str()],
                 value(to.clone()),
             )),
-            ConfigEdit::ReplaceMcpServers(servers) => Ok(self.replace_mcp_servers(servers)),
+            ConfigEdit::ReplaceMcpServers(servers) => self.replace_mcp_servers(servers),
             ConfigEdit::AddToolSuggestDisabledTool(disabled_tool) => {
                 Ok(self.add_tool_suggest_disabled_tool(disabled_tool))
             }
@@ -432,9 +432,12 @@ impl ConfigDocument {
         self.remove(segments)
     }
 
-    fn replace_mcp_servers(&mut self, servers: &BTreeMap<String, McpServerConfig>) -> bool {
+    fn replace_mcp_servers(
+        &mut self,
+        servers: &BTreeMap<String, McpServerConfig>,
+    ) -> anyhow::Result<bool> {
         if servers.is_empty() {
-            return self.clear(&["mcp_servers"]);
+            return Ok(self.clear(&["mcp_servers"]));
         }
 
         let root = self.doc.as_table_mut();
@@ -446,7 +449,7 @@ impl ConfigDocument {
         }
 
         let Some(item) = root.get_mut("mcp_servers") else {
-            return false;
+            return Ok(false);
         };
 
         if document_helpers::ensure_table_for_write(item).is_none() {
@@ -454,7 +457,7 @@ impl ConfigDocument {
         }
 
         let Some(table) = item.as_table_mut() else {
-            return false;
+            return Ok(false);
         };
 
         let keys_to_remove: Vec<String> = table
@@ -472,17 +475,17 @@ impl ConfigDocument {
                 if let TomlItem::Value(value) = existing
                     && let Some(inline) = value.as_inline_table_mut()
                 {
-                    let replacement = document_helpers::serialize_mcp_server_inline(config);
+                    let replacement = document_helpers::serialize_mcp_server_inline(config)?;
                     document_helpers::merge_inline_table(inline, replacement);
                 } else {
-                    *existing = document_helpers::serialize_mcp_server(config);
+                    *existing = document_helpers::serialize_mcp_server(config)?;
                 }
             } else {
-                table.insert(name, document_helpers::serialize_mcp_server(config));
+                table.insert(name, document_helpers::serialize_mcp_server(config)?);
             }
         }
 
-        true
+        Ok(true)
     }
 
     fn set_skill_config(&mut self, selector: SkillConfigSelector, enabled: bool) -> bool {
diff --git a/codex-rs/core/src/config/edit/document_helpers.rs b/codex-rs/core/src/config/edit/document_helpers.rs
index 60883137d0..acf598bca1 100644
--- a/codex-rs/core/src/config/edit/document_helpers.rs
+++ b/codex-rs/core/src/config/edit/document_helpers.rs
@@ -1,3 +1,4 @@
+use anyhow::Context;
 use codex_config::types::AppToolApproval;
 use codex_config::types::McpServerAuth;
 use codex_config::types::McpServerConfig;
@@ -45,7 +46,7 @@ pub(super) fn ensure_table_for_read(item: &mut TomlItem) -> Option<&mut TomlTabl
     }
 }
 
-fn serialize_mcp_server_table(config: &McpServerConfig) -> TomlTable {
+fn serialize_mcp_server_table(config: &McpServerConfig) -> anyhow::Result<TomlTable> {
     let mut entry = TomlTable::new();
     entry.set_implicit(false);
 
@@ -175,15 +176,15 @@ fn serialize_mcp_server_table(config: &McpServerConfig) -> TomlTable {
         let mut tool_entries: Vec<_> = config.tools.iter().collect();
         tool_entries.sort_by_key(|(name, _)| *name);
         for (name, tool_config) in tool_entries {
-            tools.insert(name, serialize_mcp_server_tool(tool_config));
+            tools.insert(name, serialize_mcp_server_tool(tool_config)?);
         }
         entry.insert("tools", TomlItem::Table(tools));
     }
 
-    entry
+    Ok(entry)
 }
 
-fn serialize_mcp_server_tool(config: &McpServerToolConfig) -> TomlItem {
+fn serialize_mcp_server_tool(config: &McpServerToolConfig) -> anyhow::Result<TomlItem> {
     let mut entry = TomlTable::new();
     entry.set_implicit(false);
     if let Some(approval_mode) = config.approval_mode {
@@ -194,15 +195,21 @@ fn serialize_mcp_server_tool(config: &McpServerToolConfig) -> TomlItem {
             AppToolApproval::Approve => "approve",
         });
     }
-    TomlItem::Table(entry)
+    if let Some(output_token_limit) = config.output_token_limit {
+        entry["output_token_limit"] = value(
+            i64::try_from(output_token_limit.get())
+                .context("output_token_limit exceeds the TOML integer range")?,
+        );
+    }
+    Ok(TomlItem::Table(entry))
 }
 
-pub(super) fn serialize_mcp_server(config: &McpServerConfig) -> TomlItem {
-    TomlItem::Table(serialize_mcp_server_table(config))
+pub(super) fn serialize_mcp_server(config: &McpServerConfig) -> anyhow::Result<TomlItem> {
+    Ok(TomlItem::Table(serialize_mcp_server_table(config)?))
 }
 
-pub(super) fn serialize_mcp_server_inline(config: &McpServerConfig) -> InlineTable {
-    serialize_mcp_server_table(config).into_inline_table()
+pub(super) fn serialize_mcp_server_inline(config: &McpServerConfig) -> anyhow::Result<InlineTable> {
+    Ok(serialize_mcp_server_table(config)?.into_inline_table())
 }
 
 pub(super) fn merge_inline_table(existing: &mut InlineTable, replacement: InlineTable) {
diff --git a/codex-rs/core/src/config/edit_tests.rs b/codex-rs/core/src/config/edit_tests.rs
index 7271ce78b5..19434c39f2 100644
--- a/codex-rs/core/src/config/edit_tests.rs
+++ b/codex-rs/core/src/config/edit_tests.rs
@@ -1161,8 +1161,9 @@ B = \"2\"
     assert_eq!(raw, expected);
 }
 
-#[test]
-fn blocking_replace_mcp_servers_serializes_tool_approval_overrides() {
+#[test_case::test_case(30_000; "positive limit")]
+#[test_case::test_case(usize::MAX; "largest native limit")]
+fn blocking_replace_mcp_servers_serializes_tool_approval_overrides(output_token_limit: usize) {
     let tmp = tempdir().expect("tmpdir");
     let codex_home = tmp.path();
 
@@ -1196,22 +1197,36 @@ fn blocking_replace_mcp_servers_serializes_tool_approval_overrides() {
                 "search".to_string(),
                 McpServerToolConfig {
                     approval_mode: Some(AppToolApproval::Approve),
+                    output_token_limit: std::num::NonZeroUsize::new(output_token_limit),
                 },
             )]),
         },
     );
 
-    apply_blocking(codex_home, &[ConfigEdit::ReplaceMcpServers(servers)]).expect("persist");
+    let result = apply_blocking(codex_home, &[ConfigEdit::ReplaceMcpServers(servers)]);
+    if i64::try_from(output_token_limit).is_err() {
+        assert!(
+            result
+                .unwrap_err()
+                .to_string()
+                .contains("output_token_limit exceeds the TOML integer range")
+        );
+        return;
+    }
+    result.expect("persist");
 
     let raw = std::fs::read_to_string(codex_home.join(CONFIG_TOML_FILE)).expect("read config");
-    let expected = "\
+    let expected = format!(
+        "\
 [mcp_servers.docs]
 command = \"docs-server\"
 default_tools_approval_mode = \"prompt\"
 
 [mcp_servers.docs.tools.search]
 approval_mode = \"approve\"
-";
+output_token_limit = {output_token_limit}
+"
+    );
     assert_eq!(raw, expected);
 }
 
diff --git a/codex-rs/core/src/context_manager/history.rs b/codex-rs/core/src/context_manager/history.rs
index 954e185283..1b62e756b8 100644
--- a/codex-rs/core/src/context_manager/history.rs
+++ b/codex-rs/core/src/context_manager/history.rs
@@ -21,7 +21,6 @@ use codex_protocol::models::BaseInstructions;
 use codex_protocol::models::ContentItem;
 use codex_protocol::models::FunctionCallOutputBody;
 use codex_protocol::models::FunctionCallOutputContentItem;
-use codex_protocol::models::FunctionCallOutputPayload;
 use codex_protocol::models::ImageDetail;
 use codex_protocol::models::ResponseItem;
 use codex_protocol::openai_models::InputModality;
@@ -37,8 +36,7 @@ use codex_utils_output_truncation::TruncationPolicy;
 use codex_utils_output_truncation::approx_bytes_for_tokens;
 use codex_utils_output_truncation::approx_token_count;
 use codex_utils_output_truncation::approx_tokens_from_byte_count_i64;
-use codex_utils_output_truncation::truncate_function_output_items_with_policy;
-use codex_utils_output_truncation::truncate_text;
+use codex_utils_output_truncation::truncate_function_output_payload;
 use std::num::NonZeroUsize;
 use std::ops::Deref;
 use std::sync::Arc;
@@ -171,7 +169,7 @@ impl ContextManager {
         self.record_items_with_metadata(items.into_iter().map(|item| (item, None)), policy);
     }
 
-    /// Records history envelopes while preserving their history-only metadata.
+    /// Records output while preserving its history-only metadata.
     pub(crate) fn record_annotated_items(
         &mut self,
         items: &[ResponseItemEnvelope],
@@ -196,10 +194,20 @@ impl ContextManager {
                 continue;
             }
 
-            let processed = ResponseItemEnvelope {
-                item: Self::process_item(item, policy),
+            let mut processed = ResponseItemEnvelope {
+                item: item.clone(),
                 metadata: metadata.cloned(),
             };
+            if let ResponseItem::FunctionCallOutput { output, .. }
+            | ResponseItem::CustomToolCallOutput { output, .. } = &mut processed.item
+            {
+                // The override already includes the tool's serialization allowance.
+                let policy = metadata
+                    .and_then(|metadata| metadata.fallback_token_limit_override)
+                    .map(TruncationPolicy::Tokens)
+                    .unwrap_or(policy * 1.2);
+                truncate_function_output_payload(output, policy, estimate_audio_token_count);
+            }
             Arc::make_mut(&mut self.items).push(processed);
         }
     }
@@ -473,55 +481,6 @@ impl ContextManager {
         normalize::strip_audio_when_unsupported(input_modalities, items);
     }
 
-    fn process_item(item: &ResponseItem, policy: TruncationPolicy) -> ResponseItem {
-        let policy_with_serialization_budget = policy * 1.2;
-        match item {
-            ResponseItem::FunctionCallOutput {
-                id,
-                call_id,
-                name,
-                namespace,
-                output,
-                internal_chat_message_metadata_passthrough: metadata,
-            } => ResponseItem::FunctionCallOutput {
-                id: id.clone(),
-                call_id: call_id.clone(),
-                name: name.clone(),
-                namespace: namespace.clone(),
-                output: truncate_function_output_payload(output, policy_with_serialization_budget),
-                internal_chat_message_metadata_passthrough: metadata.clone(),
-            },
-            ResponseItem::CustomToolCallOutput {
-                id,
-                call_id,
-                name,
-                output,
-                internal_chat_message_metadata_passthrough: metadata,
-            } => ResponseItem::CustomToolCallOutput {
-                id: id.clone(),
-                call_id: call_id.clone(),
-                name: name.clone(),
-                output: truncate_function_output_payload(output, policy_with_serialization_budget),
-                internal_chat_message_metadata_passthrough: metadata.clone(),
-            },
-            ResponseItem::AdditionalTools { .. }
-            | ResponseItem::Message { .. }
-            | ResponseItem::AgentMessage { .. }
-            | ResponseItem::Reasoning { .. }
-            | ResponseItem::LocalShellCall { .. }
-            | ResponseItem::FunctionCall { .. }
-            | ResponseItem::ToolSearchCall { .. }
-            | ResponseItem::ToolSearchOutput { .. }
-            | ResponseItem::WebSearchCall { .. }
-            | ResponseItem::ImageGenerationCall { .. }
-            | ResponseItem::CustomToolCall { .. }
-            | ResponseItem::Compaction { .. }
-            | ResponseItem::CompactionTrigger { .. }
-            | ResponseItem::ContextCompaction { .. }
-            | ResponseItem::Other => item.clone(),
-        }
-    }
-
     /// Walk backward from a rollback cut and trim contiguous pre-turn context-update items.
     ///
     /// Returns the adjusted cut index after removing contextual developer/user items immediately
@@ -570,25 +529,6 @@ impl ContextManager {
     }
 }
 
-pub(crate) fn truncate_function_output_payload(
-    output: &FunctionCallOutputPayload,
-    policy: TruncationPolicy,
-) -> FunctionCallOutputPayload {
-    let body = match &output.body {
-        FunctionCallOutputBody::Text(content) => {
-            FunctionCallOutputBody::Text(truncate_text(content, policy))
-        }
-        FunctionCallOutputBody::ContentItems(items) => FunctionCallOutputBody::ContentItems(
-            truncate_function_output_items_with_policy(items, policy, estimate_audio_token_count),
-        ),
-    };
-
-    FunctionCallOutputPayload {
-        body,
-        success: output.success,
-    }
-}
-
 /// API messages include every non-system item (user/assistant messages, reasoning,
 /// tool calls, tool outputs, shell calls, web-search calls, and image-generation
 /// calls).
diff --git a/codex-rs/core/src/context_manager/history_tests.rs b/codex-rs/core/src/context_manager/history_tests.rs
index cdf5b3da97..2c661588f6 100644
--- a/codex-rs/core/src/context_manager/history_tests.rs
+++ b/codex-rs/core/src/context_manager/history_tests.rs
@@ -41,6 +41,7 @@ use image::Luma;
 use image::Rgba;
 use pretty_assertions::assert_eq;
 use regex_lite::Regex;
+use test_case::test_case;
 
 const EXEC_FORMAT_MAX_BYTES: usize = 10_000;
 const EXEC_FORMAT_MAX_TOKENS: usize = 2_500;
@@ -526,8 +527,16 @@ fn annotated_history_apis_preserve_envelopes() {
     assert_eq!(history.into_raw_items(), vec![first_item]);
 }
 
-#[test]
-fn record_annotated_items_preserves_metadata_while_processing_item() {
+#[test_case(None, 100, 5, true; "model policy")]
+#[test_case(Some(200), 100, 200, false; "configured override")]
+#[test_case(Some(100), 85, 100, true; "saved limit has no additional allowance")]
+#[test_case(Some(30_000), 20_000, 30_000, false; "large explicit budget")]
+fn record_annotated_items_preserves_metadata_while_processing_item(
+    fallback_token_limit_override: Option<usize>,
+    repeat_count: usize,
+    expected_token_limit: usize,
+    expected_truncation: bool,
+) {
     let envelope = ResponseItemEnvelope {
         item: ResponseItem::FunctionCallOutput {
             id: None,
@@ -535,23 +544,36 @@ fn record_annotated_items_preserves_metadata_while_processing_item() {
             name: None,
             namespace: None,
             output: FunctionCallOutputPayload {
-                body: FunctionCallOutputBody::Text("word ".repeat(100)),
+                body: FunctionCallOutputBody::Text("word ".repeat(repeat_count)),
                 success: Some(true),
             },
             internal_chat_message_metadata_passthrough: None,
         },
-        metadata: Some(CodexHarnessMetadata::default()),
+        metadata: Some(CodexHarnessMetadata {
+            fallback_token_limit_override,
+            ..Default::default()
+        }),
     };
     let mut history = ContextManager::new();
 
     history.record_annotated_items(std::slice::from_ref(&envelope), TruncationPolicy::Tokens(4));
 
     assert_eq!(history.annotated_items().len(), 1);
+    assert_eq!(history.annotated_items()[0].metadata, envelope.metadata);
     assert_eq!(
-        history.annotated_items()[0].metadata,
-        Some(CodexHarnessMetadata::default())
+        history.annotated_items()[0].item != envelope.item,
+        expected_truncation
+    );
+    let ResponseItem::FunctionCallOutput { output, .. } = &history.annotated_items()[0].item else {
+        panic!("expected function call output");
+    };
+    assert_eq!(
+        output.body,
+        FunctionCallOutputBody::Text(truncate_text(
+            &"word ".repeat(repeat_count),
+            TruncationPolicy::Tokens(expected_token_limit),
+        ))
     );
-    assert_ne!(history.annotated_items()[0].item, envelope.item);
 }
 
 #[test]
diff --git a/codex-rs/core/src/context_manager/mod.rs b/codex-rs/core/src/context_manager/mod.rs
index 97cd7c2109..e67eb7113f 100644
--- a/codex-rs/core/src/context_manager/mod.rs
+++ b/codex-rs/core/src/context_manager/mod.rs
@@ -6,4 +6,3 @@ pub(crate) use history::ContextManager;
 pub(crate) use history::estimate_image_bytes;
 pub(crate) use history::estimate_item_token_count;
 pub(crate) use history::is_user_turn_boundary;
-pub(crate) use history::truncate_function_output_payload;
diff --git a/codex-rs/core/src/mcp_tool_call_tests.rs b/codex-rs/core/src/mcp_tool_call_tests.rs
index 4833da53f3..80b0794b7a 100644
--- a/codex-rs/core/src/mcp_tool_call_tests.rs
+++ b/codex-rs/core/src/mcp_tool_call_tests.rs
@@ -2102,6 +2102,7 @@ async fn persist_custom_mcp_tool_approval_writes_tool_override() {
         tool,
         &McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Approve),
+            ..Default::default()
         }
     );
     assert!(contents.contains("[mcp_servers.docs.tools.search]"));
@@ -2319,6 +2320,7 @@ async fn maybe_persist_mcp_tool_approval_reloads_session_config_for_custom_serve
         tool,
         &McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Approve),
+            ..Default::default()
         }
     );
     assert_eq!(mcp_tool_approval_is_remembered(&session, &key).await, true);
@@ -2368,6 +2370,7 @@ enabled = true
         tool,
         &McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Approve),
+            ..Default::default()
         }
     );
     assert!(contents.contains(r#"[plugins."sample@test".mcp_servers.sample.tools.search]"#));
@@ -2423,6 +2426,7 @@ async fn maybe_persist_mcp_tool_approval_writes_project_config_for_project_serve
         tool,
         &McpServerToolConfig {
             approval_mode: Some(AppToolApproval::Approve),
+            ..Default::default()
         }
     );
     assert!(contents.contains("[mcp_servers.docs.tools.search]"));
diff --git a/codex-rs/core/src/session/inject.rs b/codex-rs/core/src/session/inject.rs
index 6e51aa40e2..8c17a8ae5e 100644
--- a/codex-rs/core/src/session/inject.rs
+++ b/codex-rs/core/src/session/inject.rs
@@ -72,6 +72,7 @@ impl Session {
             && matches!(&item, ResponseItem::Message { role, .. } if role == "developer"))
         .then_some(CodexHarnessMetadata {
             client_authored: true,
+            ..Default::default()
         });
 
         ResponseItemEnvelope { item, metadata }
@@ -82,9 +83,7 @@ impl Session {
         turn_context: &TurnContext,
         items: Vec<ResponseItemEnvelope>,
     ) {
-        if !self.enabled(Feature::RetainClientDeveloperMessages)
-            || items.iter().all(|item| item.metadata.is_none())
-        {
+        if items.iter().all(|item| item.metadata.is_none()) {
             let items = items
                 .into_iter()
                 .map(ResponseItemEnvelope::into_item)
diff --git a/codex-rs/core/src/session/input_queue.rs b/codex-rs/core/src/session/input_queue.rs
index e7bd6642bd..6e71857aa3 100644
--- a/codex-rs/core/src/session/input_queue.rs
+++ b/codex-rs/core/src/session/input_queue.rs
@@ -401,6 +401,7 @@ mod tests {
             item: ResponseItem::Other,
             metadata: Some(CodexHarnessMetadata {
                 client_authored: true,
+                ..Default::default()
             }),
         });
         assert!(serde_json::to_value(annotated).is_err());
diff --git a/codex-rs/core/src/session/turn.rs b/codex-rs/core/src/session/turn.rs
index 1583f2d9b0..8636a4bd8f 100644
--- a/codex-rs/core/src/session/turn.rs
+++ b/codex-rs/core/src/session/turn.rs
@@ -40,6 +40,7 @@ use crate::session::step_context::StepContext;
 use crate::session::turn_context::TurnContext;
 use crate::skills::emit_explicit_skill_invocations;
 use crate::stream_events_utils::HandleOutputCtx;
+use crate::stream_events_utils::InFlightFuture;
 use crate::stream_events_utils::TurnItemContributorPolicy;
 use crate::stream_events_utils::finalize_non_tool_response_item;
 use crate::stream_events_utils::handle_non_tool_response_item;
@@ -90,7 +91,6 @@ use codex_protocol::items::build_hook_prompt_message;
 use codex_protocol::models::BaseInstructions;
 use codex_protocol::models::ContentItem;
 use codex_protocol::models::MessagePhase;
-use codex_protocol::models::ResponseInputItem;
 use codex_protocol::models::ResponseItem;
 use codex_protocol::protocol::AgentMessageContentDeltaEvent;
 use codex_protocol::protocol::AgentReasoningSectionBreakEvent;
@@ -124,7 +124,6 @@ use codex_utils_stream_parser::AssistantTextStreamParser;
 use codex_utils_stream_parser::ProposedPlanSegment;
 use codex_utils_stream_parser::extract_proposed_plan_text;
 use codex_utils_stream_parser::strip_citations;
-use futures::future::BoxFuture;
 use futures::prelude::*;
 use futures::stream::FuturesOrdered;
 use tokio_util::sync::CancellationToken;
@@ -2154,22 +2153,21 @@ async fn handle_assistant_item_done_in_plan_mode(
 
 #[instrument(level = "trace", skip_all)]
 async fn drain_in_flight(
-    in_flight: &mut FuturesOrdered<BoxFuture<'static, CodexResult<ResponseInputItem>>>,
+    in_flight: &mut FuturesOrdered<InFlightFuture<'static>>,
     sess: Arc<Session>,
     turn_context: Arc<TurnContext>,
 ) -> CodexResult<()> {
     while let Some(res) = in_flight.next().await {
         match res {
-            Ok(response_input) => {
-                let response_item = response_input.into();
-                sess.record_conversation_items(&turn_context, std::slice::from_ref(&response_item))
-                    .await;
+            Ok(envelope) => {
                 mark_thread_memory_mode_polluted_if_external_context(
                     sess.as_ref(),
                     turn_context.as_ref(),
-                    &response_item,
+                    &envelope.item,
                 )
                 .await;
+                sess.record_annotated_conversation_items(&turn_context, vec![envelope])
+                    .await;
             }
             Err(err) => {
                 error_or_panic(format!("in-flight tool future failed during drain: {err}"));
@@ -2247,8 +2245,7 @@ async fn try_run_sampling_request(
         .instrument(trace_span!("stream_request"))
         .or_cancel(&cancellation_token)
         .await??;
-    let mut in_flight: FuturesOrdered<BoxFuture<'static, CodexResult<ResponseInputItem>>> =
-        FuturesOrdered::new();
+    let mut in_flight: FuturesOrdered<InFlightFuture<'static>> = FuturesOrdered::new();
     let mut needs_follow_up = false;
     let mut last_agent_message: Option<String> = None;
     let mut active_item: Option<TurnItem> = None;
diff --git a/codex-rs/core/src/stream_events_utils.rs b/codex-rs/core/src/stream_events_utils.rs
index 5445313656..a75dbe2af8 100644
--- a/codex-rs/core/src/stream_events_utils.rs
+++ b/codex-rs/core/src/stream_events_utils.rs
@@ -2,6 +2,7 @@ use std::pin::Pin;
 use std::sync::Arc;
 
 use codex_extension_api::ExtensionData;
+use codex_history::ResponseItemEnvelope;
 use codex_protocol::ResponseItemId;
 use codex_protocol::config_types::ModeKind;
 use codex_protocol::items::TurnItem;
@@ -191,7 +192,7 @@ async fn record_stage1_output_usage_for_memory_citation(
 /// queuing any tool execution futures. This records items immediately so
 /// history and rollout stay in sync even if the turn is later cancelled.
 pub(crate) type InFlightFuture<'f> =
-    Pin<Box<dyn Future<Output = Result<ResponseInputItem>> + Send + 'f>>;
+    Pin<Box<dyn Future<Output = Result<ResponseItemEnvelope>> + Send + 'f>>;
 
 #[derive(Default)]
 pub(crate) struct OutputItemResult {
diff --git a/codex-rs/core/src/tools/context.rs b/codex-rs/core/src/tools/context.rs
index 378f947058..72f9481ff3 100644
--- a/codex-rs/core/src/tools/context.rs
+++ b/codex-rs/core/src/tools/context.rs
@@ -1,4 +1,3 @@
-use crate::context_manager::truncate_function_output_payload;
 use crate::original_image_detail::sanitize_original_image_detail;
 use crate::session::session::Session;
 use crate::session::step_context::StepContext;
@@ -16,9 +15,11 @@ use codex_protocol::models::ResponseItem;
 use codex_protocol::models::function_call_output_content_items_to_text;
 use codex_tools::LoadableToolSpec;
 use codex_tools::ToolName;
+use codex_utils_audio::estimate_audio_token_count;
 use codex_utils_output_truncation::TruncationPolicy;
 use codex_utils_output_truncation::approx_token_count;
 use codex_utils_output_truncation::formatted_truncate_text;
+use codex_utils_output_truncation::truncate_function_output_payload;
 use codex_utils_output_truncation::truncate_text;
 use serde::Serialize;
 use serde_json::Value as JsonValue;
@@ -122,6 +123,10 @@ impl ToolOutput for McpToolOutput {
         self.result.success()
     }
 
+    fn fallback_token_limit_override(&self) -> Option<usize> {
+        Some((self.truncation_policy * 1.2).token_budget())
+    }
+
     fn to_response_item(&self, call_id: &str, _payload: &ToolPayload) -> ResponseInputItem {
         ResponseInputItem::FunctionCallOutput {
             call_id: call_id.to_string(),
@@ -165,13 +170,13 @@ impl McpToolOutput {
             }
         }
 
-        // This is the context-injection form, so keep it aligned with the
-        // function-call output truncation that conversation history already
-        // applies. Code-mode consumers still get the raw `CallToolResult`.
-        //
-        // The text is serialized again inside the Responses payload, so allow
-        // a small buffer for JSON escaping and wrapper overhead.
-        truncate_function_output_payload(&payload, self.truncation_policy * 1.2)
+        // History receives this budget in tokens. Code Mode keeps the raw result.
+        truncate_function_output_payload(
+            &mut payload,
+            self.truncation_policy * 1.2,
+            estimate_audio_token_count,
+        );
+        payload
     }
 }
 
diff --git a/codex-rs/core/src/tools/context_tests.rs b/codex-rs/core/src/tools/context_tests.rs
index 3011b2ef51..391b8b0c03 100644
--- a/codex-rs/core/src/tools/context_tests.rs
+++ b/codex-rs/core/src/tools/context_tests.rs
@@ -230,8 +230,11 @@ fn mcp_tool_output_response_item_preserves_content_items() {
     }
 }
 
-#[test]
-fn mcp_tool_output_code_mode_result_preserves_content_without_private_metadata() {
+#[test_case::test_case(TruncationPolicy::Bytes(64); "byte budget")]
+#[test_case::test_case(TruncationPolicy::Tokens(1); "token budget")]
+fn mcp_tool_output_code_mode_result_preserves_content_without_private_metadata(
+    truncation_policy: TruncationPolicy,
+) {
     let large_content = "large structured value ".repeat(1_000);
     let output = McpToolOutput {
         result: CallToolResult {
@@ -250,12 +253,13 @@ fn mcp_tool_output_code_mode_result_preserves_content_without_private_metadata()
         tool_input: json!({}),
         wall_time: std::time::Duration::from_millis(1250),
         original_image_detail_supported: false,
-        truncation_policy: TruncationPolicy::Bytes(64),
+        truncation_policy,
     };
 
-    let result = output.code_mode_result(&ToolPayload::Function {
+    let payload = ToolPayload::Function {
         arguments: "{}".to_string(),
-    });
+    };
+    let result = output.code_mode_result(&payload);
 
     assert_eq!(
         result,
diff --git a/codex-rs/core/src/tools/handlers/mcp.rs b/codex-rs/core/src/tools/handlers/mcp.rs
index 9d84ddc36b..4d45c64349 100644
--- a/codex-rs/core/src/tools/handlers/mcp.rs
+++ b/codex-rs/core/src/tools/handlers/mcp.rs
@@ -37,6 +37,7 @@ use codex_tools::agent_plugin_mcp_tool_to_responses_api_tool;
 use codex_tools::mcp_tool_to_responses_api_tool;
 use codex_utils_image::PromptImageMode;
 use codex_utils_image::load_data_url_for_prompt_uncached;
+use codex_utils_output_truncation::TruncationPolicy;
 use codex_utils_string::take_bytes_at_char_boundary;
 use futures::future::BoxFuture;
 use serde_json::Map;
@@ -217,6 +218,12 @@ impl McpHandler {
             }
         };
 
+        // Capture presentation policy from the same config snapshot used for execution.
+        let truncation_policy = prepared_mcp_call
+            .as_ref()
+            .and_then(codex_mcp::PreparedMcpCall::output_token_limit)
+            .map(TruncationPolicy::Tokens)
+            .unwrap_or(turn.model_info().truncation_policy.into());
         let started = Instant::now();
         let result = handle_mcp_tool_call(
             Arc::clone(&session),
@@ -237,7 +244,7 @@ impl McpHandler {
             tool_input: result.tool_input,
             wall_time: started.elapsed(),
             original_image_detail_supported: can_request_original_image_detail(turn.model_info()),
-            truncation_policy: turn.model_info().truncation_policy.into(),
+            truncation_policy,
         }))
     }
 }
diff --git a/codex-rs/core/src/tools/parallel.rs b/codex-rs/core/src/tools/parallel.rs
index 6b92c89270..67c065faee 100644
--- a/codex-rs/core/src/tools/parallel.rs
+++ b/codex-rs/core/src/tools/parallel.rs
@@ -25,6 +25,7 @@ use crate::tools::registry::AnyToolResult;
 use crate::tools::registry::ToolArgumentDiffConsumer;
 use crate::tools::router::ToolCall;
 use crate::tools::router::ToolCallSource;
+use codex_history::ResponseItemEnvelope;
 use codex_protocol::error::CodexErr;
 use codex_protocol::models::ResponseInputItem;
 
@@ -74,7 +75,7 @@ impl ToolCallRuntime {
         self,
         call: ToolCall,
         cancellation_token: CancellationToken,
-    ) -> impl std::future::Future<Output = Result<ResponseInputItem, CodexErr>> {
+    ) -> impl std::future::Future<Output = Result<ResponseItemEnvelope, CodexErr>> {
         let error_call = call.clone();
         let source = call.direct_source();
         let future = self.handle_tool_call_with_source(call, source, cancellation_token);
@@ -82,7 +83,9 @@ impl ToolCallRuntime {
             match future.await {
                 Ok(response) => Ok(response.into_response()),
                 Err(FunctionCallError::Fatal(message)) => Err(CodexErr::Fatal(message)),
-                Err(other) => Ok(Self::failure_response(error_call, other)),
+                Err(other) => Ok(ResponseItemEnvelope::new(
+                    Self::failure_response(error_call, other).into(),
+                )),
             }
         }
         .in_current_span()
@@ -655,7 +658,10 @@ mod tests {
                 success: Some(true),
             },
         };
-        assert_eq!(expected_response, response);
+        assert_eq!(
+            ResponseItemEnvelope::new(expected_response.into()),
+            response
+        );
 
         let actual = records
             .lock()
diff --git a/codex-rs/core/src/tools/registry.rs b/codex-rs/core/src/tools/registry.rs
index 15c2cf27e5..6564a22d1f 100644
--- a/codex-rs/core/src/tools/registry.rs
+++ b/codex-rs/core/src/tools/registry.rs
@@ -30,6 +30,8 @@ use crate::tools::tool_dispatch_trace::ToolDispatchTrace;
 use crate::util::error_or_panic;
 use codex_analytics::ControlToolCallStatus;
 use codex_extension_api::ToolCallOutcome;
+use codex_history::CodexHarnessMetadata;
+use codex_history::ResponseItemEnvelope;
 use codex_protocol::models::FunctionCallOutputPayload;
 use codex_protocol::models::ResponseInputItem;
 use codex_protocol::parse_command::ParsedCommand;
@@ -191,14 +193,22 @@ pub(crate) struct AnyToolResult {
 }
 
 impl AnyToolResult {
-    pub(crate) fn into_response(self) -> ResponseInputItem {
+    pub(crate) fn into_response(self) -> ResponseItemEnvelope {
         let Self {
             call_id,
             payload,
             result,
             ..
         } = self;
-        result.to_response_item(&call_id, &payload)
+        ResponseItemEnvelope {
+            item: result.to_response_item(&call_id, &payload).into(),
+            metadata: result
+                .fallback_token_limit_override()
+                .map(|limit| CodexHarnessMetadata {
+                    fallback_token_limit_override: Some(limit),
+                    ..Default::default()
+                }),
+        }
     }
 
     pub(crate) fn code_mode_result(self) -> serde_json::Value {
@@ -223,6 +233,10 @@ impl ToolOutput for PostToolUseFeedbackOutput {
         self.original.success_for_logging()
     }
 
+    fn fallback_token_limit_override(&self) -> Option<usize> {
+        self.original.fallback_token_limit_override()
+    }
+
     fn to_response_item(&self, call_id: &str, payload: &ToolPayload) -> ResponseInputItem {
         self.model_visible.to_response_item(call_id, payload)
     }
diff --git a/codex-rs/core/src/tools/registry_tests.rs b/codex-rs/core/src/tools/registry_tests.rs
index b862988bec..65c19f6ae3 100644
--- a/codex-rs/core/src/tools/registry_tests.rs
+++ b/codex-rs/core/src/tools/registry_tests.rs
@@ -2,6 +2,8 @@ use super::*;
 use crate::session::session::Session;
 use crate::session::step_context::StepContext;
 use codex_protocol::DEFAULT_FUNCTION_NAMESPACE;
+use codex_protocol::models::ResponseItem;
+use codex_utils_output_truncation::TruncationPolicy;
 use futures::future::BoxFuture;
 use pretty_assertions::assert_eq;
 use std::sync::atomic::AtomicUsize;
@@ -587,6 +589,53 @@ async fn write_stdin_does_not_expose_default_pre_tool_use_payload() {
     assert_eq!(write_stdin.pre_tool_use_payload(&invocation), None);
 }
 
+#[test_case::test_case(TruncationPolicy::Tokens(1), 2; "token budget")]
+#[test_case::test_case(TruncationPolicy::Bytes(401), 121; "scale bytes before converting to tokens")]
+fn post_tool_use_feedback_output_preserves_fallback_token_limit_override(
+    truncation_policy: TruncationPolicy,
+    expected_token_limit: usize,
+) {
+    let result = AnyToolResult {
+        call_id: "call-1".to_string(),
+        payload: ToolPayload::Function {
+            arguments: "{}".to_string(),
+        },
+        result: Box::new(PostToolUseFeedbackOutput {
+            original: Box::new(crate::tools::context::McpToolOutput {
+                result: codex_protocol::mcp::CallToolResult {
+                    content: Vec::new(),
+                    structured_content: None,
+                    is_error: None,
+                    meta: None,
+                },
+                tool_input: serde_json::json!({}),
+                wall_time: Duration::ZERO,
+                original_image_detail_supported: false,
+                truncation_policy,
+            }),
+            model_visible: crate::tools::context::FunctionToolOutput::from_text(
+                "hook feedback".to_string(),
+                /*success*/ None,
+            ),
+        }),
+        post_tool_use_payload: None,
+    };
+
+    assert_eq!(
+        result.into_response(),
+        ResponseItemEnvelope {
+            item: ResponseItem::from(ResponseInputItem::FunctionCallOutput {
+                call_id: "call-1".to_string(),
+                output: FunctionCallOutputPayload::from_text("hook feedback".to_string()),
+            }),
+            metadata: Some(CodexHarnessMetadata {
+                fallback_token_limit_override: Some(expected_token_limit),
+                ..Default::default()
+            }),
+        }
+    );
+}
+
 #[test]
 fn post_tool_use_feedback_output_keeps_code_mode_result_typed() {
     let result = AnyToolResult {
@@ -608,12 +657,15 @@ fn post_tool_use_feedback_output_keeps_code_mode_result_typed() {
 
     assert_eq!(
         result.into_response(),
-        ResponseInputItem::FunctionCallOutput {
-            call_id: "call-1".to_string(),
-            output: codex_protocol::models::FunctionCallOutputPayload::from_text(
-                "hook feedback".to_string()
-            ),
-        }
+        ResponseItemEnvelope::new(
+            ResponseInputItem::FunctionCallOutput {
+                call_id: "call-1".to_string(),
+                output: codex_protocol::models::FunctionCallOutputPayload::from_text(
+                    "hook feedback".to_string()
+                ),
+            }
+            .into()
+        )
     );
 
     let result = AnyToolResult {
diff --git a/codex-rs/core/src/tools/router_tests.rs b/codex-rs/core/src/tools/router_tests.rs
index d01de04d99..01935232b4 100644
--- a/codex-rs/core/src/tools/router_tests.rs
+++ b/codex-rs/core/src/tools/router_tests.rs
@@ -26,7 +26,6 @@ use codex_protocol::dynamic_tools::DynamicToolNamespaceTool;
 use codex_protocol::dynamic_tools::DynamicToolSpec;
 use codex_protocol::models::ContentItem;
 use codex_protocol::models::FunctionCallOutputBody;
-use codex_protocol::models::ResponseInputItem;
 use codex_protocol::models::ResponseItem;
 use codex_tools::ResponsesApiNamespace;
 use codex_tools::ResponsesApiNamespaceTool;
@@ -604,10 +603,12 @@ async fn extension_tool_executors_are_model_visible_and_dispatchable() -> anyhow
         )
         .await?;
 
-    let response = result.into_response();
+    let response = result.into_response().item;
     match response {
-        ResponseInputItem::FunctionCallOutput { call_id, output } => {
-            assert_eq!(call_id, "call-extension");
+        ResponseItem::FunctionCallOutput {
+            call_id, output, ..
+        } => {
+            assert_eq!(call_id.as_deref(), Some("call-extension"));
             let FunctionCallOutputBody::Text(text) = output.body else {
                 panic!("expected text function call output")
             };
diff --git a/codex-rs/core/tests/suite/hooks_mcp.rs b/codex-rs/core/tests/suite/hooks_mcp.rs
index 5c81b00af1..2243b15778 100644
--- a/codex-rs/core/tests/suite/hooks_mcp.rs
+++ b/codex-rs/core/tests/suite/hooks_mcp.rs
@@ -233,7 +233,7 @@ print({python_output_literal})
     Ok(())
 }
 
-fn write_mcp_tool_hook(
+pub(super) fn write_mcp_tool_hook(
     home: &Path,
     event_name: &str,
     matcher: Option<&str>,
diff --git a/codex-rs/core/tests/suite/truncation.rs b/codex-rs/core/tests/suite/truncation.rs
index 974f59b9ff..ed1c77f0f7 100644
--- a/codex-rs/core/tests/suite/truncation.rs
+++ b/codex-rs/core/tests/suite/truncation.rs
@@ -26,7 +26,10 @@ use core_test_support::responses::mount_sse_once;
 use core_test_support::responses::sse;
 use core_test_support::responses::start_mock_server;
 use core_test_support::skip_if_no_network;
+use core_test_support::skip_if_wine_exec;
 use core_test_support::stdio_server_bin;
+use core_test_support::test_codex::TestCodex;
+use core_test_support::test_codex::TestCodexBuilder;
 use core_test_support::test_codex::local_selections;
 use core_test_support::test_codex::test_codex;
 use core_test_support::wait_for_event;
@@ -35,6 +38,11 @@ use serde_json::Value;
 use serde_json::json;
 use std::collections::HashMap;
 use std::time::Duration;
+use test_case::test_case;
+use wiremock::MockServer;
+
+use super::rmcp_client::remote_aware_environment_id;
+use super::rmcp_client::remote_aware_stdio_server_bin;
 
 fn assert_wall_time_header(output: &str) {
     let (wall_time, marker) = output
@@ -745,21 +753,19 @@ async fn exec_command_output_not_truncated_with_custom_limit() -> Result<()> {
     Ok(())
 }
 
-// MCP server output should also remain intact when the config increases the token limit.
-#[tokio::test(flavor = "multi_thread", worker_threads = 1)]
-async fn mcp_tool_call_output_not_truncated_with_custom_limit() -> Result<()> {
-    skip_if_no_network!(Ok(()));
-
-    let server = start_mock_server().await;
-
-    let call_id = "rmcp-untruncated";
+async fn call_mcp_echo(
+    server: &MockServer,
+    builder: TestCodexBuilder,
+    output_token_limit: Option<usize>,
+    message_bytes: usize,
+) -> Result<(TestCodex, String)> {
+    let call_id = "rmcp-output";
     let server_name = "rmcp";
     let namespace = format!("mcp__{server_name}");
-    let large_msg = "a".repeat(80_000);
-    let args_json = serde_json::json!({ "message": large_msg });
+    let args_json = json!({ "message": "a".repeat(message_bytes) });
 
     mount_sse_once(
-        &server,
+        server,
         sse(vec![
             responses::ev_response_created("resp-1"),
             responses::ev_function_call_with_namespace(
@@ -772,8 +778,8 @@ async fn mcp_tool_call_output_not_truncated_with_custom_limit() -> Result<()> {
         ]),
     )
     .await;
-    let mock2 = mount_sse_once(
-        &server,
+    let response = mount_sse_once(
+        server,
         sse(vec![
             responses::ev_assistant_message("msg-1", "rmcp echo tool completed."),
             responses::ev_completed("resp-2"),
@@ -781,67 +787,139 @@ async fn mcp_tool_call_output_not_truncated_with_custom_limit() -> Result<()> {
     )
     .await;
 
-    let rmcp_test_server_bin = stdio_server_bin()?;
-
-    let mut builder = test_codex().with_config(move |config| {
-        config.tool_output_token_limit = Some(50_000);
-        let mut servers = config.mcp_servers.get().clone();
-        servers.insert(
-            server_name.to_string(),
-            codex_config::types::McpServerConfig {
-                auth: Default::default(),
-                transport: codex_config::types::McpServerTransportConfig::Stdio {
-                    command: rmcp_test_server_bin,
-                    args: Vec::new(),
-                    env: None,
-                    env_vars: Vec::new(),
-                    cwd: None,
-                },
-                environment_id: "local".to_string(),
-                enabled: true,
-                required: false,
-                supports_parallel_tool_calls: false,
-                omit_tools_from: None,
-                disabled_reason: None,
-                startup_timeout_sec: Some(std::time::Duration::from_secs(10)),
-                tool_timeout_sec: None,
-                default_tools_approval_mode: None,
-                enabled_tools: None,
-                disabled_tools: None,
-                scopes: None,
-                oauth: None,
-                oauth_resource: None,
-                tools: HashMap::new(),
-            },
-        );
+    let mcp_server = serde_json::from_value(json!({
+        "command": remote_aware_stdio_server_bin()?,
+        "environment_id": remote_aware_environment_id(),
+        "startup_timeout_sec": 10,
+        "tools": { "echo": { "output_token_limit": output_token_limit } },
+    }))?;
+    let mut builder = builder.with_config(move |config| {
         config
             .mcp_servers
-            .set(servers)
+            .set(HashMap::from([(server_name.to_string(), mcp_server)]))
             .expect("test mcp servers should accept any configuration");
     });
-    let fixture = builder.build(&server).await?;
+    let fixture = builder.build_with_auto_env(server).await?;
     wait_for_mcp_server(&fixture.codex, server_name).await?;
+    fixture.submit_text_turn("call the MCP echo tool").await?;
 
-    fixture
-        .submit_turn_with_permission_profile(
-            "call the rmcp echo tool with a very large message",
-            PermissionProfile::read_only(),
-        )
-        .await?;
-
-    let output = mock2
+    let output = response
         .single_request()
         .function_call_output_text(call_id)
-        .context("function_call_output present for rmcp call")?;
+        .context("model-facing MCP output text")?;
+    Ok((fixture, output))
+}
 
+#[test_case(3_000, 13_000; "serialization allowance")]
+#[test_case(30_000, 116_000; "large override")]
+#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
+async fn mcp_tool_output_limit_preserves_output_that_fits(
+    output_token_limit: usize,
+    message_bytes: usize,
+) -> Result<()> {
+    skip_if_no_network!(Ok(()));
+    skip_if_wine_exec!(Ok(()), "requires a Windows test_stdio_server binary");
+
+    let server = start_mock_server().await;
+    let builder = test_codex().with_config(|config| config.tool_output_token_limit = Some(50));
+    let (_fixture, output) =
+        call_mcp_echo(&server, builder, Some(output_token_limit), message_bytes).await?;
+
+    assert!(output.contains(&"a".repeat(message_bytes)));
+    Ok(())
+}
+
+#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
+async fn mcp_tool_output_limit_truncates_oversized_output() -> Result<()> {
+    skip_if_no_network!(Ok(()));
+    skip_if_wine_exec!(Ok(()), "requires a Windows test_stdio_server binary");
+
+    let server = start_mock_server().await;
+    let builder = test_codex().with_config(|config| config.tool_output_token_limit = Some(50));
+    let (_fixture, output) = call_mcp_echo(
+        &server,
+        builder,
+        Some(30_000),
+        /*message_bytes*/ 150_000,
+    )
+    .await?;
+
+    assert!(output.contains("truncated"));
+    // 30k tokens plus the serialization allowance leaves about 144k bytes.
+    assert!((140_000..145_000).contains(&output.len()));
+    Ok(())
+}
+
+#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
+async fn mcp_tool_output_limit_applies_to_hook_feedback() -> Result<()> {
+    skip_if_no_network!(Ok(()));
+    skip_if_wine_exec!(Ok(()), "requires a Windows test_stdio_server binary");
+
+    let server = start_mock_server().await;
+    let builder = test_codex()
+        .with_pre_build_hook(|home| {
+            super::hooks_mcp::write_mcp_tool_hook(
+                home,
+                "PostToolUse",
+                Some("^mcp__rmcp__echo$"),
+                "rmcp",
+                &json!({ "continue": false, "stopReason": "hook feedback ".repeat(100) })
+                    .to_string(),
+            )
+            .expect("write MCP post-tool hook");
+        })
+        .with_config(|config| {
+            core_test_support::hooks::trust_discovered_hooks(config);
+            config.tool_output_token_limit = Some(50);
+        });
+    let (_fixture, output) =
+        call_mcp_echo(&server, builder, Some(100), /*message_bytes*/ 0).await?;
+
+    assert!(output.starts_with("hook feedback "));
+    assert!(output.contains("truncated"));
+    // The tool's 120-token budget applies, not the 60-token global budget.
+    assert!((400..600).contains(&output.len()));
+    Ok(())
+}
+
+#[test_case(None; "model default")]
+#[test_case(Some(30_000); "tool override")]
+#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
+async fn mcp_tool_output_limit_survives_resume(output_token_limit: Option<usize>) -> Result<()> {
+    skip_if_no_network!(Ok(()));
+    skip_if_wine_exec!(Ok(()), "requires a Windows test_stdio_server binary");
+
+    let server = start_mock_server().await;
+    let builder = test_codex().with_config(|config| config.tool_output_token_limit = Some(50_000));
+    let (fixture, output) = call_mcp_echo(
+        &server,
+        builder,
+        output_token_limit,
+        /*message_bytes*/ 150_000,
+    )
+    .await?;
+
+    fixture.codex.ensure_rollout_materialized().await;
+    fixture.codex.flush_rollout().await?;
+    let resumed_response = mount_sse_once(
+        &server,
+        sse(vec![
+            responses::ev_assistant_message("msg-2", "resumed"),
+            responses::ev_completed("resp-3"),
+        ]),
+    )
+    .await;
+    let mut resume_builder = test_codex().with_config(|config| {
+        config.tool_output_token_limit = Some(50);
+    });
+    let resumed = resume_builder.restart(&server, &fixture).await?;
+    resumed.submit_turn("continue").await?;
     assert_eq!(
-        output.len(),
-        80065,
-        "MCP output should retain its serialized length plus wall-time header"
-    );
-    assert!(
-        !output.contains("truncated"),
-        "output should not include truncation markers when limit is raised: {output}"
+        resumed_response
+            .single_request()
+            .function_call_output_text("rmcp-output")
+            .context("resumed MCP output")?,
+        output
     );
 
     Ok(())
diff --git a/codex-rs/ext/mcp/tests/executor_plugin_mcp.rs b/codex-rs/ext/mcp/tests/executor_plugin_mcp.rs
index f37f3411ec..3ab8077d70 100644
--- a/codex-rs/ext/mcp/tests/executor_plugin_mcp.rs
+++ b/codex-rs/ext/mcp/tests/executor_plugin_mcp.rs
@@ -231,8 +231,8 @@ async fn high_level_discovery_matches_the_existing_plugin_provider() -> TestResu
       "enabled_tools": ["read", "deploy", "trusted", "package-only"],
       "disabled_tools": ["package-denied"],
       "tools": {
-        "read": {"approval_mode": "prompt"},
-        "deploy": {"approval_mode": "approve"},
+        "read": {"approval_mode": "prompt", "output_token_limit": 12000},
+        "deploy": {"approval_mode": "approve", "output_token_limit": 4000},
         "trusted": {"approval_mode": "approve"}
       }
     },
@@ -255,6 +255,10 @@ disabled_tools = ["write"]
 
 [plugins."selected-root".mcp_servers.first.tools.read]
 approval_mode = "approve"
+output_token_limit = 8000
+
+[plugins."selected-root".mcp_servers.first.tools.deploy]
+output_token_limit = 9000
 
 [plugins."selected-root".mcp_servers.first.tools.trusted]
 approval_mode = "approve"
@@ -308,18 +312,21 @@ default_tools_approval_mode = "auto"
                     "read".to_string(),
                     McpServerToolConfig {
                         approval_mode: Some(AppToolApproval::Prompt),
+                        output_token_limit: std::num::NonZeroUsize::new(8_000),
                     },
                 ),
                 (
                     "deploy".to_string(),
                     McpServerToolConfig {
                         approval_mode: Some(AppToolApproval::Prompt),
+                        output_token_limit: std::num::NonZeroUsize::new(4_000),
                     },
                 ),
                 (
                     "trusted".to_string(),
                     McpServerToolConfig {
                         approval_mode: Some(AppToolApproval::Approve),
+                        ..Default::default()
                     },
                 ),
             ]),
diff --git a/codex-rs/history/src/lib.rs b/codex-rs/history/src/lib.rs
index 6e15c01bc8..0241394fcb 100644
--- a/codex-rs/history/src/lib.rs
+++ b/codex-rs/history/src/lib.rs
@@ -48,6 +48,11 @@ pub struct CodexHarnessMetadata {
     /// Whether a developer message was supplied by an app-server client.
     #[serde(default)]
     pub client_authored: bool,
+
+    /// Overrides history's fallback truncation budget, including on resume.
+    /// Measured in tokens, with any tool-specific allowance already included.
+    #[serde(default, skip_serializing_if = "Option::is_none")]
+    pub fallback_token_limit_override: Option<usize>,
 }
 
 impl ResponseItemEnvelope {
diff --git a/codex-rs/history/src/tests.rs b/codex-rs/history/src/tests.rs
index 97b61cf511..cca1050cd7 100644
--- a/codex-rs/history/src/tests.rs
+++ b/codex-rs/history/src/tests.rs
@@ -72,6 +72,7 @@ fn response_item_envelope_stores_metadata_beside_rollout_payload() -> Result<()>
             item: response_item.clone(),
             metadata: Some(CodexHarnessMetadata {
                 client_authored: true,
+                fallback_token_limit_override: Some(20_000),
             }),
         }),
     };
@@ -84,7 +85,7 @@ fn response_item_envelope_stores_metadata_beside_rollout_payload() -> Result<()>
             "ordinal": 7,
             "type": "response_item",
             "payload": response_item,
-            "metadata": { "client_authored": true },
+            "metadata": { "client_authored": true, "fallback_token_limit_override": 20_000 },
         })
     );
     assert_eq!(serialized["payload"].get("metadata"), None);
@@ -97,6 +98,7 @@ fn response_item_envelope_stores_metadata_beside_rollout_payload() -> Result<()>
         envelope.metadata,
         Some(CodexHarnessMetadata {
             client_authored: true,
+            fallback_token_limit_override: Some(20_000),
         })
     );
     Ok(())
@@ -184,6 +186,7 @@ fn compacted_replacement_history_stores_metadata_in_an_aligned_sidecar() -> Resu
                 item: developer_message.clone(),
                 metadata: Some(CodexHarnessMetadata {
                     client_authored: true,
+                    ..Default::default()
                 }),
             },
             ResponseItemEnvelope::new(compaction_item.clone()),
@@ -216,6 +219,7 @@ fn compacted_replacement_history_stores_metadata_in_an_aligned_sidecar() -> Resu
                 item: developer_message,
                 metadata: Some(CodexHarnessMetadata {
                     client_authored: true,
+                    ..Default::default()
                 }),
             },
             ResponseItemEnvelope {
@@ -277,6 +281,7 @@ fn compacted_metadata_remains_compatible_with_legacy_response_item_readers() ->
         item: response_item.clone(),
         metadata: Some(CodexHarnessMetadata {
             client_authored: true,
+            ..Default::default()
         }),
     };
     let response_line = serde_json::to_value(RolloutItem::ResponseItem(envelope.clone()))?;
diff --git a/codex-rs/tools/src/tool_output.rs b/codex-rs/tools/src/tool_output.rs
index a8cfa569d3..0aa22b626d 100644
--- a/codex-rs/tools/src/tool_output.rs
+++ b/codex-rs/tools/src/tool_output.rs
@@ -23,6 +23,12 @@ pub trait ToolOutput: Send {
         false
     }
 
+    /// Overrides history's fallback token limit after tool-specific truncation.
+    /// Include any serialization allowance; history uses this limit unchanged.
+    fn fallback_token_limit_override(&self) -> Option<usize> {
+        None
+    }
+
     fn to_response_item(&self, call_id: &str, payload: &ToolPayload) -> ResponseInputItem;
 
     /// Returns the tool call id exposed to `PostToolUse` hooks for this output.
@@ -67,6 +73,10 @@ where
         (**self).contains_external_context()
     }
 
+    fn fallback_token_limit_override(&self) -> Option<usize> {
+        (**self).fallback_token_limit_override()
+    }
+
     fn to_response_item(&self, call_id: &str, payload: &ToolPayload) -> ResponseInputItem {
         (**self).to_response_item(call_id, payload)
     }
diff --git a/codex-rs/utils/output-truncation/src/lib.rs b/codex-rs/utils/output-truncation/src/lib.rs
index fc7d43bfc2..e612457396 100644
--- a/codex-rs/utils/output-truncation/src/lib.rs
+++ b/codex-rs/utils/output-truncation/src/lib.rs
@@ -1,6 +1,8 @@
-//! Helpers for truncating tool and exec output using [`TruncationPolicy`](codex_protocol::protocol::TruncationPolicy).
+//! Shared byte/token truncation for tool and exec output.
 
+use codex_protocol::models::FunctionCallOutputBody;
 use codex_protocol::models::FunctionCallOutputContentItem;
+use codex_protocol::models::FunctionCallOutputPayload;
 pub use codex_utils_string::approx_bytes_for_tokens;
 pub use codex_utils_string::approx_token_count;
 pub use codex_utils_string::approx_tokens_from_byte_count;
@@ -29,6 +31,24 @@ pub fn truncate_text(content: &str, policy: TruncationPolicy) -> String {
     }
 }
 
+/// Applies the existing byte/token budget without changing success metadata or media ordering.
+pub fn truncate_function_output_payload(
+    output: &mut FunctionCallOutputPayload,
+    policy: TruncationPolicy,
+    estimate_audio_token_count: impl Fn(&str) -> usize,
+) {
+    match &mut output.body {
+        FunctionCallOutputBody::Text(text) => *text = truncate_text(text, policy),
+        FunctionCallOutputBody::ContentItems(items) => {
+            *items = truncate_function_output_items_with_policy(
+                items,
+                policy,
+                estimate_audio_token_count,
+            );
+        }
+    }
+}
+
 pub fn formatted_truncate_text_content_items_with_policy(
     items: &[FunctionCallOutputContentItem],
     policy: TruncationPolicy,