diff --git a/nanobot/agent/context.py b/nanobot/agent/context.py
index 1b092ec41..772aceb52 100644
--- a/nanobot/agent/context.py
+++ b/nanobot/agent/context.py
@@ -123,7 +123,10 @@ class ContextBuilder:
             if active_content:
                 parts.append(f"# Active Skills\n\n{active_content}")
 
-        skills_summary = self.skills.build_skills_summary(exclude=set(active_skills))
+        skills_summary = self.skills.build_skills_summary(
+            exclude=set(active_skills),
+            workspace=root,
+        )
         if skills_summary:
             parts.append(render_template("agent/skills_section.md", skills_summary=skills_summary))
 
diff --git a/nanobot/agent/skills.py b/nanobot/agent/skills.py
index b7ec66afd..9b565285b 100644
--- a/nanobot/agent/skills.py
+++ b/nanobot/agent/skills.py
@@ -201,7 +201,12 @@ class SkillsLoader:
             ),
         )
 
-    def build_skills_summary(self, exclude: set[str] | None = None) -> str:
+    def build_skills_summary(
+        self,
+        exclude: set[str] | None = None,
+        *,
+        workspace: Path | None = None,
+    ) -> str:
         """
         Build a summary of all skills (name, description, path, availability).
 
@@ -210,6 +215,7 @@ class SkillsLoader:
 
         Args:
             exclude: Set of skill names to omit from the summary.
+            workspace: Effective project workspace used to choose safe display paths.
 
         Returns:
             Markdown-formatted skills summary.
@@ -218,6 +224,9 @@ class SkillsLoader:
         if not all_skills:
             return ""
 
+        agent_workspace = self.workspace.expanduser().resolve()
+        project_workspace = (workspace or self.workspace).expanduser().resolve()
+        use_relative_roots = project_workspace == agent_workspace
         sections: list[str] = []
         groups = (
             ("Workspace skills", "workspace", self.workspace_skills),
@@ -233,7 +242,12 @@ class SkillsLoader:
             if not entries:
                 continue
 
-            lines = [f"### {label} (`{root.expanduser().resolve()}`)"]
+            resolved_root = root.expanduser().resolve()
+            if use_relative_roots:
+                display_root = Path("plugins" if source == "plugin" else "skills")
+            else:
+                display_root = resolved_root
+            lines = [f"### {label} (`{display_root}`)"]
             for entry in entries:
                 skill_name = entry["name"]
                 meta = self._get_skill_meta(skill_name)
diff --git a/nanobot/agent/subagent.py b/nanobot/agent/subagent.py
index e46146ea1..a3ea0a367 100644
--- a/nanobot/agent/subagent.py
+++ b/nanobot/agent/subagent.py
@@ -540,12 +540,17 @@ class SubagentManager:
         skills_summary = SkillsLoader(
             self.workspace,
             disabled_skills=self.disabled_skills,
-        ).build_skills_summary()
+        ).build_skills_summary(workspace=project_workspace)
+        history_log = (
+            str(agent_workspace / "memory" / "history.jsonl")
+            if agent_workspace != project_workspace
+            else "memory/history.jsonl"
+        )
         return render_template(
             "agent/subagent_system.md",
             workspace=str(project_workspace),
             agent_workspace=str(agent_workspace),
-            history_log=str(agent_workspace / "memory" / "history.jsonl"),
+            history_log=history_log,
             skills_summary=skills_summary or "",
         )
 
diff --git a/nanobot/skills/memory/SKILL.md b/nanobot/skills/memory/SKILL.md
index e7a5f2c9c..cf40fdad9 100644
--- a/nanobot/skills/memory/SKILL.md
+++ b/nanobot/skills/memory/SKILL.md
@@ -15,8 +15,8 @@ description: Search conversation history and understand Dream-managed profile an
 
 ## Search Past Events
 
-Use the absolute `History log` path shown in the system prompt. Always pass it to
-`grep`; never substitute a project-relative `memory/history.jsonl`, which may belong
+Use the `History log` path shown in the system prompt. Always pass it to `grep`;
+never substitute a different project-relative `memory/history.jsonl`, which may belong
 to the selected project. Each JSONL line contains `cursor`, `timestamp`, and `content`.
 
 - For broad searches, start with `output_mode="count"` or the default
@@ -25,7 +25,7 @@ to the selected project. Each JSONL line contains `cursor`, `timestamp`, and `co
 - Use `fixed_strings=true` for literal timestamps or JSON fragments
 - Use `head_limit` / `offset` to page through long histories
 
-Examples (replace `<history-log-path>` with the absolute path from the system prompt):
+Examples (replace `<history-log-path>` with the path from the system prompt):
 - `grep(pattern="keyword", path="<history-log-path>", case_insensitive=true)`
 - `grep(pattern="2026-04-02 10:00", path="<history-log-path>", fixed_strings=true)`
 - `grep(pattern="keyword", path="<history-log-path>", output_mode="count", case_insensitive=true)`
diff --git a/nanobot/templates/agent/identity.md b/nanobot/templates/agent/identity.md
index dfcfb1b60..e24a4dabc 100644
--- a/nanobot/templates/agent/identity.md
+++ b/nanobot/templates/agent/identity.md
@@ -2,14 +2,18 @@
 {{ runtime }}
 
 ## Workspace
-Your current project workspace is at: {{ workspace_path }}
 {% if agent_workspace_path != workspace_path %}
 Nanobot's agent workspace is at: {{ agent_workspace_path }}
-{% endif %}
 - Agent profile: {{ agent_workspace_path }}/SOUL.md and {{ agent_workspace_path }}/USER.md (automatically managed by Dream — do not edit directly)
 - Long-term memory: {{ agent_workspace_path }}/memory/MEMORY.md (automatically managed by Dream — do not edit directly)
 - History log: {{ agent_workspace_path }}/memory/history.jsonl (append-only JSONL; prefer built-in `grep` for search).
 - Custom skills: {{ agent_workspace_path }}/skills/{% raw %}{skill-name}{% endraw %}/SKILL.md
+{% else %}
+- Agent profile: SOUL.md and USER.md (automatically managed by Dream — do not edit directly)
+- Long-term memory: memory/MEMORY.md (automatically managed by Dream — do not edit directly)
+- History log: memory/history.jsonl (append-only JSONL; prefer built-in `grep` for search).
+- Custom skills: skills/{% raw %}{skill-name}{% endraw %}/SKILL.md
+{% endif %}
 
 {{ platform_policy }}
 {% if channel == 'telegram' or channel == 'qq' or channel == 'discord' %}
diff --git a/nanobot/templates/agent/skills_section.md b/nanobot/templates/agent/skills_section.md
index 023542869..d4d6441c6 100644
--- a/nanobot/templates/agent/skills_section.md
+++ b/nanobot/templates/agent/skills_section.md
@@ -1,5 +1,5 @@
 # Skills
 
-The following skills extend your capabilities. Each group lists one absolute root and relative SKILL.md paths; join them when using `read_file`.
+The following skills extend your capabilities. Each group lists one root and relative SKILL.md paths; join them when using `read_file`.
 
 {{ skills_summary }}
diff --git a/nanobot/templates/agent/subagent_system.md b/nanobot/templates/agent/subagent_system.md
index b07b01cc5..38bcd4685 100644
--- a/nanobot/templates/agent/subagent_system.md
+++ b/nanobot/templates/agent/subagent_system.md
@@ -6,7 +6,6 @@ Stay focused on the assigned task. Your final response will be reported back to
 {% include 'agent/_snippets/untrusted_content.md' %}
 
 ## Workspace
-Current project workspace: {{ workspace }}
 {% if agent_workspace != workspace %}
 Nanobot's agent workspace: {{ agent_workspace }}
 {% endif %}
@@ -15,7 +14,7 @@ History log: {{ history_log }}
 
 ## Skills
 
-Each group lists one absolute root and relative SKILL.md paths. Join them when using `read_file`.
+Each group lists one root and relative SKILL.md paths. Join them when using `read_file`.
 
 {{ skills_summary }}
 {% endif %}
diff --git a/tests/agent/test_agent_plugins.py b/tests/agent/test_agent_plugins.py
index 8eb8a43ff..6e23206bb 100644
--- a/tests/agent/test_agent_plugins.py
+++ b/tests/agent/test_agent_plugins.py
@@ -84,7 +84,10 @@ def test_plugin_skill_lifecycle_and_precedence(tmp_path: Path) -> None:
     assert loader.get_explicitly_invoked_skills("Use $shared") == ["shared"]
     assert loader.get_always_skills() == ["shared"]
     assert "Plugin body" in (loader.load_skill("shared") or "")
-    assert "`demo/skills/shared/SKILL.md`" in loader.build_skills_summary()
+    summary = loader.build_skills_summary()
+    assert "### Agent Plugin skills (`plugins`)" in summary
+    assert "`demo/skills/shared/SKILL.md`" in summary
+    assert str(tmp_path.resolve()) not in summary
 
     set_agent_plugin_enabled(tmp_path, "demo", False)
     assert [entry["source"] for entry in loader.list_skills()] == ["builtin"]
diff --git a/tests/agent/test_context_builder.py b/tests/agent/test_context_builder.py
index ce5485ad4..12a2f4e78 100644
--- a/tests/agent/test_context_builder.py
+++ b/tests/agent/test_context_builder.py
@@ -309,6 +309,14 @@ class TestBuildSystemPrompt:
         result = builder.build_system_prompt()
         assert "workspace" in result.lower() or "python" in result.lower()
 
+    def test_default_identity_uses_relative_agent_paths(self, tmp_path):
+        result = ContextBuilder(tmp_path)._get_identity()
+
+        assert str(tmp_path.resolve()) not in result
+        assert "Agent profile: SOUL.md and USER.md" in result
+        assert "History log: memory/history.jsonl" in result
+        assert "Custom skills: skills/{skill-name}/SKILL.md" in result
+
     def test_selected_project_identity_keeps_agent_data_in_agent_workspace(self, tmp_path):
         agent_home = tmp_path / "agent-home"
         project = tmp_path / "project"
@@ -317,7 +325,7 @@ class TestBuildSystemPrompt:
 
         result = ContextBuilder(agent_home)._get_identity(workspace=project)
 
-        assert f"current project workspace is at: {project.resolve()}" in result
+        assert str(project.resolve()) not in result
         assert f"agent workspace is at: {agent_home.resolve()}" in result
         assert f"{agent_home.resolve()}/SOUL.md" in result
         assert f"{project.resolve()}/SOUL.md" not in result
diff --git a/tests/agent/test_skills_loader.py b/tests/agent/test_skills_loader.py
index fd8d0b290..d5e2c98df 100644
--- a/tests/agent/test_skills_loader.py
+++ b/tests/agent/test_skills_loader.py
@@ -298,7 +298,7 @@ def test_disabled_skills_excluded_from_build_skills_summary(tmp_path: Path) -> N
     assert "beta" in summary
 
 
-def test_build_skills_summary_groups_paths_by_root(tmp_path: Path) -> None:
+def test_build_skills_summary_uses_relative_roots_in_agent_workspace(tmp_path: Path) -> None:
     workspace = tmp_path / "ws"
     workspace_skills = workspace / "skills"
     workspace_skills.mkdir(parents=True)
@@ -308,14 +308,34 @@ def test_build_skills_summary_groups_paths_by_root(tmp_path: Path) -> None:
 
     summary = SkillsLoader(workspace, builtin_skills_dir=builtin).build_skills_summary()
 
-    assert summary.count(str(workspace_skills)) == 1
-    assert summary.count(str(builtin)) == 1
+    assert str(workspace_skills) not in summary
+    assert str(builtin) not in summary
     assert str(workspace_path) not in summary
     assert str(builtin_path) not in summary
+    assert summary.count("(`skills`)") == 2
     assert "`alpha/SKILL.md`" in summary
     assert "`beta/SKILL.md`" in summary
 
 
+def test_build_skills_summary_keeps_absolute_roots_for_selected_project(tmp_path: Path) -> None:
+    workspace = tmp_path / "ws"
+    workspace_skills = workspace / "skills"
+    workspace_skills.mkdir(parents=True)
+    _write_skill(workspace_skills, "alpha", body="# Alpha")
+    builtin = tmp_path / "builtin"
+    _write_skill(builtin, "beta", body="# Beta")
+    project = tmp_path / "project"
+    project.mkdir()
+
+    summary = SkillsLoader(workspace, builtin_skills_dir=builtin).build_skills_summary(
+        workspace=project,
+    )
+
+    assert summary.count(str(workspace_skills.resolve())) == 1
+    assert summary.count(str(builtin.resolve())) == 1
+    assert str(project.resolve()) not in summary
+
+
 def test_bundled_update_setup_description_is_valid_yaml(tmp_path: Path) -> None:
     metadata = SkillsLoader(tmp_path).get_skill_metadata("update-setup")
 
diff --git a/tests/agent/test_subagent.py b/tests/agent/test_subagent.py
index 551dd9860..724a31f78 100644
--- a/tests/agent/test_subagent.py
+++ b/tests/agent/test_subagent.py
@@ -83,7 +83,7 @@ def test_subagent_respects_file_tool_toggle(tmp_path):
     assert file_tools.isdisjoint(tools.tool_names)
 
 
-def test_subagent_prompt_explains_grouped_skill_paths(tmp_path):
+def test_subagent_prompt_keeps_agent_paths_for_selected_project(tmp_path):
     agent_workspace = tmp_path / "agent"
     project = tmp_path / "project"
     global_skill = agent_workspace / "skills" / "global-custom" / "SKILL.md"
@@ -100,15 +100,32 @@ def test_subagent_prompt_explains_grouped_skill_paths(tmp_path):
 
     prompt = manager._build_subagent_prompt(workspace=project)
 
-    assert "one absolute root and relative SKILL.md paths" in prompt
+    assert "one root and relative SKILL.md paths" in prompt
     assert "Join them when using `read_file`" in prompt
-    assert f"Current project workspace: {project.resolve()}" in prompt
+    assert str(project.resolve()) not in prompt
     assert f"Nanobot's agent workspace: {agent_workspace.resolve()}" in prompt
     assert f"History log: {agent_workspace.resolve() / 'memory' / 'history.jsonl'}" in prompt
     assert "global-custom" in prompt
     assert "project-custom" not in prompt
 
 
+def test_subagent_prompt_uses_relative_paths_in_agent_workspace(tmp_path):
+    skill = tmp_path / "skills" / "custom" / "SKILL.md"
+    skill.parent.mkdir(parents=True)
+    skill.write_text("---\ndescription: custom skill\n---\nCustom", encoding="utf-8")
+    manager = SubagentManager(
+        workspace=tmp_path,
+        bus=MessageBus(),
+        max_tool_result_chars=16_000,
+    )
+
+    prompt = manager._build_subagent_prompt()
+
+    assert str(tmp_path.resolve()) not in prompt
+    assert "History log: memory/history.jsonl" in prompt
+    assert "### Workspace skills (`skills`)" in prompt
+
+
 @pytest.mark.asyncio
 async def test_subagent_keeps_project_runtime_scope_with_agent_owned_tools(tmp_path):
     agent_workspace = tmp_path / "agent"