diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index b3b97a8ab..a0f3a1155 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -2,9 +2,28 @@
 
 ## [Unreleased]
 
+### Breaking Changes
+
+- Renamed `task.isolation.enabled` (boolean) setting to `task.isolation.mode` (enum: `none`, `worktree`, `fuse-overlay`). Existing `true`/`false` values are auto-migrated to `worktree`/`none`.
+
 ### Added
 
 - Added `PERPLEXITY_COOKIES` env var for Perplexity web search via session cookies extracted from desktop app
+- Added `fuse-overlay` isolation mode for subagents using `fuse-overlayfs` (copy-on-write overlay, no baseline patch apply needed)
+- Added `task.isolation.merge` setting (`patch` or `branch`) to control how isolated task changes are integrated back. `branch` mode commits each task to a temp branch and cherry-picks for clean commit history
+- Added `task.isolation.commits` setting (`generic` or `ai`) for commit messages on isolated task branches and nested repos. `ai` mode uses a smol model to generate conventional commit messages from diffs
+- Nested non-submodule git repos are now discovered and handled during task isolation (changes captured and applied independently from parent repo)
+- Added `task.eager` setting to encourage the agent to delegate work to subagents by default
+
+### Fixed
+
+- Fixed nested repo changes being lost when tasks commit inside the isolation (baseline state is now committed before task runs, so delta correctly excludes it)
+- Fixed nested repo patches conflicting when multiple tasks contribute to the same repo (baseline untracked files no longer leak into patches)
+- Nested repo changes are now committed after patch application (previously left as untracked files)
+- Failed tasks no longer create stale branches or capture garbage patches (gated on exit code)
+- Merge failures (e.g. conflicting patches) are now non-fatal — agent output is preserved with `merge failed` status instead of `failed`
+- Stale branches are cleaned up when `commitToBranch` fails
+- Commit message generator filters lock files from diffs before AI summarization
 
 ## [13.2.1] - 2026-02-24
 
@@ -15,7 +34,6 @@
 ### Changed
 
 - Extracted non-interactive environment config from `bash-interactive.ts` into shared `non-interactive-env.ts` module, applied consistently to all bash execution paths
-
 ## [13.2.0] - 2026-02-23
 ### Breaking Changes
 
diff --git a/packages/coding-agent/DEVELOPMENT.md b/packages/coding-agent/DEVELOPMENT.md
index e02010b39..796a17f7c 100644
--- a/packages/coding-agent/DEVELOPMENT.md
+++ b/packages/coding-agent/DEVELOPMENT.md
@@ -906,7 +906,14 @@ Despite the name `runSubprocess`, `packages/coding-agent/src/task/executor.ts` c
 
 What _is_ isolated is execution context and artifacts, not process memory:
 
-- Optional git worktree isolation is handled by `TaskTool.execute(...)` in `index.ts` using `ensureWorktree(...)`, `applyBaseline(...)`, `captureDeltaPatch(...)`, `cleanupWorktree(...)`.
+- Optional filesystem isolation is controlled by the `task.isolation.mode` setting (`"none"`, `"worktree"`, or `"fuse-overlay"`).
+  - **worktree**: `ensureWorktree(...)`, `applyBaseline(...)`, `captureDeltaPatch(...)`, `cleanupWorktree(...)`. Nested non-submodule git repos are discovered and handled independently.
+  - **fuse-overlay**: `ensureFuseOverlay(...)` (mounts a copy-on-write overlay via `fuse-overlayfs`), `captureDeltaPatch(...)`, `cleanupFuseOverlay(...)`. No baseline apply needed since the overlay reflects the full working tree. Fails outright if mount fails.
+- The `task.isolation.merge` setting controls how isolated changes are integrated back:
+  - **patch** (default): captures a diff via `captureDeltaPatch(...)`, combines patches, and applies with `git apply`.
+  - **branch**: each task commits to a temp branch (`omp/task/<id>`) via `commitToBranch(...)`, then `mergeTaskBranches(...)` cherry-picks them sequentially onto HEAD. If `git apply` fails inside `commitToBranch`, the error is non-fatal — the agent result is preserved with a `merge failed` status.
+- The `task.isolation.commits` setting (`generic` or `ai`) controls commit messages for branch commits and nested repo patches. `ai` mode uses a smol model to generate conventional commit messages from diffs.
+- Nested repo patches are applied via `applyNestedPatches(...)` after the parent merge, grouped by repo with one commit per repo.
 - Child session JSONL/markdown outputs are written under the task artifacts directory (`<id>.jsonl`, `<id>.md`, and in isolated mode `<id>.patch`).
 
 ### Tooling Surface in Child Sessions
diff --git a/packages/coding-agent/src/config/settings-schema.ts b/packages/coding-agent/src/config/settings-schema.ts
index 1177433f1..d7e0ae506 100644
--- a/packages/coding-agent/src/config/settings-schema.ts
+++ b/packages/coding-agent/src/config/settings-schema.ts
@@ -544,14 +544,46 @@ export const SETTINGS_SCHEMA = {
 	// ─────────────────────────────────────────────────────────────────────────
 	// Task tool settings
 	// ─────────────────────────────────────────────────────────────────────────
-	"task.isolation.enabled": {
+	"task.isolation.mode": {
+		type: "enum",
+		values: ["none", "worktree", "fuse-overlay"] as const,
+		default: "none",
+		ui: {
+			tab: "tools",
+			label: "Task isolation",
+			description: "Isolation mode for subagents (none, git worktree, or fuse-overlay)",
+			submenu: true,
+		},
+	},
+	"task.isolation.merge": {
+		type: "enum",
+		values: ["patch", "branch"] as const,
+		default: "patch",
+		ui: {
+			tab: "tools",
+			label: "Task isolation merge",
+			description: "How isolated task changes are integrated (patch apply or branch merge)",
+			submenu: true,
+		},
+	},
+	"task.isolation.commits": {
+		type: "enum",
+		values: ["generic", "ai"] as const,
+		default: "generic",
+		ui: {
+			tab: "tools",
+			label: "Task isolation commits",
+			description: "Commit message style for nested repo changes (generic or AI-generated)",
+			submenu: true,
+		},
+	},
+	"task.eager": {
 		type: "boolean",
 		default: false,
 		ui: {
 			tab: "tools",
-			label: "Task isolation",
-			description: "Run subagents in isolated git worktrees",
-			submenu: true,
+			label: "Eager task delegation",
+			description: "Encourage the agent to delegate work to subagents unless changes are trivial",
 		},
 	},
 	"task.maxConcurrency": {
diff --git a/packages/coding-agent/src/config/settings.ts b/packages/coding-agent/src/config/settings.ts
index 61acae85c..0615d87bd 100644
--- a/packages/coding-agent/src/config/settings.ts
+++ b/packages/coding-agent/src/config/settings.ts
@@ -553,6 +553,16 @@ export class Settings {
 			}
 		}
 
+		// task.isolation.enabled (boolean) -> task.isolation.mode (enum)
+		const taskObj = raw.task as Record<string, unknown> | undefined;
+		const isolationObj = taskObj?.isolation as Record<string, unknown> | undefined;
+		if (isolationObj && "enabled" in isolationObj) {
+			if (typeof isolationObj.enabled === "boolean") {
+				isolationObj.mode = isolationObj.enabled ? "worktree" : "none";
+			}
+			delete isolationObj.enabled;
+		}
+
 		return raw;
 	}
 
diff --git a/packages/coding-agent/src/modes/components/settings-defs.ts b/packages/coding-agent/src/modes/components/settings-defs.ts
index f129a9b65..5bfc54e03 100644
--- a/packages/coding-agent/src/modes/components/settings-defs.ts
+++ b/packages/coding-agent/src/modes/components/settings-defs.ts
@@ -93,6 +93,22 @@ const OPTION_PROVIDERS: Partial<Record<SettingPath, OptionProvider>> = {
 		{ value: "2", label: "Double" },
 		{ value: "3", label: "Triple" },
 	],
+	// Task isolation mode
+	"task.isolation.mode": [
+		{ value: "none", label: "None", description: "No isolation" },
+		{ value: "worktree", label: "Worktree", description: "Git worktree isolation" },
+		{ value: "fuse-overlay", label: "Fuse Overlay", description: "COW overlay via fuse-overlayfs" },
+	],
+	// Task isolation merge strategy
+	"task.isolation.merge": [
+		{ value: "patch", label: "Patch", description: "Combine diffs and git apply" },
+		{ value: "branch", label: "Branch", description: "Commit per task, merge with --no-ff" },
+	],
+	// Task isolation commit messages
+	"task.isolation.commits": [
+		{ value: "generic", label: "Generic", description: "Static commit message" },
+		{ value: "ai", label: "AI", description: "AI-generated commit message from diff" },
+	],
 	// Todo max reminders
 	"todo.reminders.max": [
 		{ value: "1", label: "1 reminder" },
diff --git a/packages/coding-agent/src/prompts/system/commit-message-system.md b/packages/coding-agent/src/prompts/system/commit-message-system.md
new file mode 100644
index 000000000..a91897b0b
--- /dev/null
+++ b/packages/coding-agent/src/prompts/system/commit-message-system.md
@@ -0,0 +1,2 @@
+Generate a concise git commit message from the provided diff. Use conventional commit format: `type(scope): description` where type is feat/fix/refactor/chore/test/docs and scope is optional. The description MUST be lowercase, imperative mood, no trailing period. Keep it under 72 characters.
+You MUST output ONLY the commit message, nothing else.
diff --git a/packages/coding-agent/src/prompts/system/system-prompt.md b/packages/coding-agent/src/prompts/system/system-prompt.md
index a637367db..dc8baefc1 100644
--- a/packages/coding-agent/src/prompts/system/system-prompt.md
+++ b/packages/coding-agent/src/prompts/system/system-prompt.md
@@ -159,6 +159,19 @@ Semantic questions **MUST** be answered with semantic tools.
 - What is this thing? → `lsp hover`
 {{/has}}
 
+{{#if eagerTasks}}
+<eager-tasks>
+You SHOULD delegate work to subagents by default. Working alone is the exception, not the rule.
+
+Use the Task tool unless the change is:
+- A single-file edit under ~30 lines
+- A direct answer or explanation with no code changes
+- A command the user asked you to run yourself
+
+For everything else — multi-file changes, refactors, new features, test additions, investigations — break the work into tasks and delegate. Err on the side of delegating. You are an orchestrator first, a coder second.
+</eager-tasks>
+{{/if}}
+
 {{#has tools "ssh"}}
 ### SSH: match commands to host shell
 
diff --git a/packages/coding-agent/src/prompts/tools/task-summary.md b/packages/coding-agent/src/prompts/tools/task-summary.md
index f8de1ac68..5082dc83e 100644
--- a/packages/coding-agent/src/prompts/tools/task-summary.md
+++ b/packages/coding-agent/src/prompts/tools/task-summary.md
@@ -20,9 +20,9 @@
 {{/unless}}
 {{/each}}
 
-{{#if patchApplySummary}}
-<patch-summary>
-{{patchApplySummary}}
-</patch-summary>
+{{#if mergeSummary}}
+<merge-summary>
+{{mergeSummary}}
+</merge-summary>
 {{/if}}
 </task-summary>
\ No newline at end of file
diff --git a/packages/coding-agent/src/prompts/tools/task.md b/packages/coding-agent/src/prompts/tools/task.md
index ec515a13b..d703725d3 100644
--- a/packages/coding-agent/src/prompts/tools/task.md
+++ b/packages/coding-agent/src/prompts/tools/task.md
@@ -16,7 +16,7 @@ Subagents lack your conversation history. Every decision, file content, and user
 - `context`: Shared background prepended to every assignment. Session-specific info only.
 - `schema`: JTD schema for expected output. Format lives here — **MUST NOT** be duplicated in assignments.
 - `tasks`: Tasks to execute in parallel.
-- `isolated`: Run in isolated git worktree; returns patches. Use when tasks edit overlapping files.
+- `isolated`: Run in isolated environment; returns patches. Use when tasks edit overlapping files.
 </parameters>
 
 <critical>
diff --git a/packages/coding-agent/src/sdk.ts b/packages/coding-agent/src/sdk.ts
index d83439ddc..85c8c38a4 100644
--- a/packages/coding-agent/src/sdk.ts
+++ b/packages/coding-agent/src/sdk.ts
@@ -1120,6 +1120,7 @@ export async function createAgentSession(options: CreateAgentSessionOptions = {}
 	});
 
 	const repeatToolDescriptions = settings.get("repeatToolDescriptions");
+	const eagerTasks = settings.get("task.eager");
 	const intentField = settings.get("tools.intentTracing") || $env.PI_INTENT_TRACING === "1" ? INTENT_FIELD : undefined;
 	const rebuildSystemPrompt = async (toolNames: string[], tools: Map<string, AgentTool>): Promise<string> => {
 		toolContextStore.setToolNames(toolNames);
@@ -1135,6 +1136,7 @@ export async function createAgentSession(options: CreateAgentSessionOptions = {}
 			skillsSettings: settings.getGroup("skills") as SkillsSettings,
 			appendSystemPrompt: memoryInstructions,
 			repeatToolDescriptions,
+			eagerTasks,
 			intentField,
 		});
 
@@ -1154,6 +1156,7 @@ export async function createAgentSession(options: CreateAgentSessionOptions = {}
 				customPrompt: options.systemPrompt,
 				appendSystemPrompt: memoryInstructions,
 				repeatToolDescriptions,
+				eagerTasks,
 				intentField,
 			});
 		}
diff --git a/packages/coding-agent/src/system-prompt.ts b/packages/coding-agent/src/system-prompt.ts
index edb61fe32..6c3f8c611 100644
--- a/packages/coding-agent/src/system-prompt.ts
+++ b/packages/coding-agent/src/system-prompt.ts
@@ -358,6 +358,8 @@ export interface BuildSystemPromptOptions {
 	rules?: Array<{ name: string; description?: string; path: string; globs?: string[] }>;
 	/** Intent field name injected into every tool schema. If set, explains the field in the prompt. */
 	intentField?: string;
+	/** Encourage the agent to delegate via tasks unless changes are trivial. */
+	eagerTasks?: boolean;
 }
 
 /** Build the system prompt with tools, guidelines, and context */
@@ -379,6 +381,7 @@ export async function buildSystemPrompt(options: BuildSystemPromptOptions = {}):
 		preloadedSkills: providedPreloadedSkills,
 		rules,
 		intentField,
+		eagerTasks = false,
 	} = options;
 	const resolvedCwd = cwd ?? getProjectDir();
 	const preloadedSkills = providedPreloadedSkills;
@@ -535,6 +538,7 @@ export async function buildSystemPrompt(options: BuildSystemPromptOptions = {}):
 		cwd: resolvedCwd,
 		intentTracing: !!intentField,
 		intentField: intentField ?? "",
+		eagerTasks,
 	};
 	return renderPromptTemplate(resolvedCustomPrompt ? customSystemPromptTemplate : systemPromptTemplate, data);
 }
diff --git a/packages/coding-agent/src/task/index.ts b/packages/coding-agent/src/task/index.ts
index 88c073b21..27bc4ae6d 100644
--- a/packages/coding-agent/src/task/index.ts
+++ b/packages/coding-agent/src/task/index.ts
@@ -29,6 +29,7 @@ import taskSummaryTemplate from "../prompts/tools/task-summary.md" with { type:
 import { formatBytes, formatDuration } from "../tools/render-utils";
 // Import review tools for side effects (registers subagent tool handlers)
 import "../tools/review";
+import { generateCommitMessage } from "../utils/commit-message-generator";
 import { discoverAgents, getAgent } from "./discovery";
 import { runSubprocess } from "./executor";
 import { AgentOutputManager } from "./output-manager";
@@ -47,11 +48,17 @@ import {
 } from "./types";
 import {
 	applyBaseline,
+	applyNestedPatches,
 	captureBaseline,
 	captureDeltaPatch,
+	cleanupFuseOverlay,
+	cleanupTaskBranches,
 	cleanupWorktree,
+	commitToBranch,
+	ensureFuseOverlay,
 	ensureWorktree,
 	getRepoRoot,
+	mergeTaskBranches,
 	type WorktreeBaseline,
 } from "./worktree";
 
@@ -145,11 +152,11 @@ export class TaskTool implements AgentTool<TaskSchema, TaskToolDetails, Theme> {
 	get description(): string {
 		const disabledAgents = this.session.settings.get("task.disabledAgents") as string[];
 		const maxConcurrency = this.session.settings.get("task.maxConcurrency");
-		const isolationEnabled = this.session.settings.get("task.isolation.enabled");
+		const isolationMode = this.session.settings.get("task.isolation.mode");
 		return renderDescription(
 			this.#discoveredAgents,
 			maxConcurrency,
-			isolationEnabled,
+			isolationMode !== "none",
 			this.session.settings.get("async.enabled"),
 			disabledAgents,
 		);
@@ -168,9 +175,9 @@ export class TaskTool implements AgentTool<TaskSchema, TaskToolDetails, Theme> {
 	 * Create a TaskTool instance with async agent discovery.
 	 */
 	static async create(session: ToolSession): Promise<TaskTool> {
-		const isolationEnabled = session.settings.get("task.isolation.enabled");
+		const isolationMode = session.settings.get("task.isolation.mode");
 		const { agents } = await discoverAgents(session.cwd);
-		return new TaskTool(session, agents, isolationEnabled);
+		return new TaskTool(session, agents, isolationMode !== "none");
 	}
 
 	async execute(
@@ -422,18 +429,20 @@ export class TaskTool implements AgentTool<TaskSchema, TaskToolDetails, Theme> {
 		const startTime = Date.now();
 		const { agents, projectAgentsDir } = await discoverAgents(this.session.cwd);
 		const { agent: agentName, context, schema: outputSchema } = params;
-		const isolationEnabled = this.session.settings.get("task.isolation.enabled");
+		const isolationMode = this.session.settings.get("task.isolation.mode");
 		const isolationRequested = "isolated" in params ? params.isolated === true : false;
-		const isIsolated = isolationEnabled && isolationRequested;
+		const isIsolated = isolationMode !== "none" && isolationRequested;
+		const mergeMode = this.session.settings.get("task.isolation.merge");
+		const commitStyle = this.session.settings.get("task.isolation.commits");
 		const maxConcurrency = this.session.settings.get("task.maxConcurrency");
 		const taskDepth = this.session.taskDepth ?? 0;
 
-		if (!isolationEnabled && "isolated" in params) {
+		if (isolationMode === "none" && "isolated" in params) {
 			return {
 				content: [
 					{
 						type: "text",
-						text: "Task isolation is disabled. Remove the isolated argument to run subagents.",
+						text: "Task isolation is disabled. Remove the isolated argument or set task.isolation.mode to 'worktree' or 'fuse-overlay'.",
 					},
 				],
 				details: {
@@ -789,16 +798,23 @@ export class TaskTool implements AgentTool<TaskSchema, TaskToolDetails, Theme> {
 				}
 
 				const taskStart = Date.now();
-				let worktreeDir: string | undefined;
+				let isolationDir: string | undefined;
 				try {
 					if (!repoRoot || !baseline) {
 						throw new Error("Isolated task execution not initialized.");
 					}
-					worktreeDir = await ensureWorktree(repoRoot, task.id);
-					await applyBaseline(worktreeDir, baseline);
+					const taskBaseline = structuredClone(baseline);
+
+					if (isolationMode === "fuse-overlay") {
+						isolationDir = await ensureFuseOverlay(repoRoot, task.id);
+					} else {
+						isolationDir = await ensureWorktree(repoRoot, task.id);
+						await applyBaseline(isolationDir, taskBaseline);
+					}
+
 					const result = await runSubprocess({
 						cwd: this.session.cwd,
-						worktree: worktreeDir,
+						worktree: isolationDir,
 						agent,
 						task: task.task,
 						description: task.description,
@@ -830,13 +846,56 @@ export class TaskTool implements AgentTool<TaskSchema, TaskToolDetails, Theme> {
 						preloadedSkills: task.preloadedSkills,
 						promptTemplates,
 					});
-					const patch = await captureDeltaPatch(worktreeDir, baseline);
-					const patchPath = path.join(effectiveArtifactsDir, `${task.id}.patch`);
-					await Bun.write(patchPath, patch);
-					return {
-						...result,
-						patchPath,
-					};
+					if (mergeMode === "branch" && result.exitCode === 0) {
+						try {
+							const commitMsg =
+								commitStyle === "ai" && this.session.modelRegistry
+									? async (diff: string) => {
+											const smolModel = this.session.settings.getModelRole("smol");
+											return generateCommitMessage(
+												diff,
+												this.session.modelRegistry!,
+												smolModel,
+												this.session.getSessionId?.() ?? undefined,
+											);
+										}
+									: undefined;
+							const commitResult = await commitToBranch(
+								isolationDir,
+								taskBaseline,
+								task.id,
+								task.description,
+								commitMsg,
+							);
+							return {
+								...result,
+								branchName: commitResult?.branchName,
+								nestedPatches: commitResult?.nestedPatches,
+							};
+						} catch (mergeErr) {
+							// Agent succeeded but branch commit failed — clean up stale branch
+							const branchName = `omp/task/${task.id}`;
+							await $`git branch -D ${branchName}`.cwd(repoRoot).quiet().nothrow();
+							const msg = mergeErr instanceof Error ? mergeErr.message : String(mergeErr);
+							return { ...result, error: `Merge failed: ${msg}` };
+						}
+					}
+					if (result.exitCode === 0) {
+						try {
+							const delta = await captureDeltaPatch(isolationDir, taskBaseline);
+							const patchPath = path.join(effectiveArtifactsDir, `${task.id}.patch`);
+							await Bun.write(patchPath, delta.rootPatch);
+							return {
+								...result,
+								patchPath,
+								nestedPatches: delta.nestedPatches,
+							};
+						} catch (patchErr) {
+							const msg = patchErr instanceof Error ? patchErr.message : String(patchErr);
+							return { ...result, error: `Patch capture failed: ${msg}` };
+						}
+					}
+					return result;
 				} catch (err) {
 					const message = err instanceof Error ? err.message : String(err);
 					return {
@@ -856,8 +915,12 @@ export class TaskTool implements AgentTool<TaskSchema, TaskToolDetails, Theme> {
 						error: message,
 					};
 				} finally {
-					if (worktreeDir) {
-						await cleanupWorktree(worktreeDir);
+					if (isolationDir) {
+						if (isolationMode === "fuse-overlay") {
+							await cleanupFuseOverlay(isolationDir);
+						} else {
+							await cleanupWorktree(isolationDir);
+						}
 					}
 				}
 			};
@@ -917,74 +980,152 @@ export class TaskTool implements AgentTool<TaskSchema, TaskToolDetails, Theme> {
 				}
 			}
 
-			let patchApplySummary = "";
-			let patchesApplied: boolean | null = null;
-			if (isIsolated) {
-				const patchesInOrder = results.map(result => result.patchPath).filter(Boolean) as string[];
-				const missingPatch = results.some(result => !result.patchPath);
-				if (!repoRoot || missingPatch) {
-					patchesApplied = false;
-				} else {
-					const patchStats = await Promise.all(
-						patchesInOrder.map(async patchPath => ({
-							patchPath,
-							size: (await fs.stat(patchPath)).size,
-						})),
-					);
-					const nonEmptyPatches = patchStats.filter(patch => patch.size > 0).map(patch => patch.patchPath);
-					if (nonEmptyPatches.length === 0) {
-						patchesApplied = true;
+			let mergeSummary = "";
+			let changesApplied: boolean | null = null;
+			let mergedBranchesForNestedPatches: Set<string> | null = null;
+			if (isIsolated && repoRoot) {
+				if (mergeMode === "branch") {
+					// Branch mode: merge task branches sequentially
+					const branchEntries = results
+						.filter(r => r.branchName && r.exitCode === 0 && !r.aborted)
+						.map(r => ({ branchName: r.branchName!, taskId: r.id, description: r.description }));
+
+					if (branchEntries.length === 0) {
+						changesApplied = true;
 					} else {
-						const patchTexts = await Promise.all(
-							nonEmptyPatches.map(async patchPath => Bun.file(patchPath).text()),
-						);
-						const combinedPatch = patchTexts.map(text => (text.endsWith("\n") ? text : `${text}\n`)).join("");
-						if (!combinedPatch.trim()) {
-							patchesApplied = true;
+						const mergeResult = await mergeTaskBranches(repoRoot, branchEntries);
+						mergedBranchesForNestedPatches = new Set(mergeResult.merged);
+						changesApplied = mergeResult.failed.length === 0;
+
+						if (changesApplied) {
+							mergeSummary = `\n\nMerged ${mergeResult.merged.length} branch${mergeResult.merged.length === 1 ? "" : "es"}: ${mergeResult.merged.join(", ")}`;
 						} else {
-							const combinedPatchPath = path.join(os.tmpdir(), `omp-task-combined-${Snowflake.next()}.patch`);
-							try {
-								await Bun.write(combinedPatchPath, combinedPatch);
-								const checkResult = await $`git apply --check --binary ${combinedPatchPath}`
-									.cwd(repoRoot)
-									.quiet()
-									.nothrow();
-								if (checkResult.exitCode !== 0) {
-									patchesApplied = false;
-								} else {
-									const applyResult = await $`git apply --binary ${combinedPatchPath}`
+							const mergedPart =
+								mergeResult.merged.length > 0 ? `Merged: ${mergeResult.merged.join(", ")}.\n` : "";
+							const failedPart = `Failed: ${mergeResult.failed.join(", ")}.`;
+							const conflictPart = mergeResult.conflict ? `\nConflict: ${mergeResult.conflict}` : "";
+							mergeSummary = `\n\n<system-notification>Branch merge failed. ${mergedPart}${failedPart}${conflictPart}\nUnmerged branches remain for manual resolution.</system-notification>`;
+						}
+					}
+
+					// Clean up merged branches (keep failed ones for manual resolution)
+					const allBranches = branchEntries.map(b => b.branchName);
+					if (changesApplied) {
+						await cleanupTaskBranches(repoRoot, allBranches);
+					}
+				} else {
+					// Patch mode: combine and apply patches
+					const patchesInOrder = results.map(result => result.patchPath).filter(Boolean) as string[];
+					const missingPatch = results.some(result => !result.patchPath);
+					if (missingPatch) {
+						changesApplied = false;
+					} else {
+						const patchStats = await Promise.all(
+							patchesInOrder.map(async patchPath => ({
+								patchPath,
+								size: (await fs.stat(patchPath)).size,
+							})),
+						);
+						const nonEmptyPatches = patchStats.filter(patch => patch.size > 0).map(patch => patch.patchPath);
+						if (nonEmptyPatches.length === 0) {
+							changesApplied = true;
+						} else {
+							const patchTexts = await Promise.all(
+								nonEmptyPatches.map(async patchPath => Bun.file(patchPath).text()),
+							);
+							const combinedPatch = patchTexts.map(text => (text.endsWith("\n") ? text : `${text}\n`)).join("");
+							if (!combinedPatch.trim()) {
+								changesApplied = true;
+							} else {
+								const combinedPatchPath = path.join(os.tmpdir(), `omp-task-combined-${Snowflake.next()}.patch`);
+								try {
+									await Bun.write(combinedPatchPath, combinedPatch);
+									const checkResult = await $`git apply --check --binary ${combinedPatchPath}`
 										.cwd(repoRoot)
 										.quiet()
 										.nothrow();
-									patchesApplied = applyResult.exitCode === 0;
+									if (checkResult.exitCode !== 0) {
+										changesApplied = false;
+									} else {
+										const applyResult = await $`git apply --binary ${combinedPatchPath}`
+											.cwd(repoRoot)
+											.quiet()
+											.nothrow();
+										changesApplied = applyResult.exitCode === 0;
+									}
+								} finally {
+									await fs.rm(combinedPatchPath, { force: true });
 								}
-							} finally {
-								await fs.rm(combinedPatchPath, { force: true });
 							}
 						}
 					}
-				}
 
-				if (patchesApplied) {
-					patchApplySummary = "\n\nApplied patches: yes";
-				} else {
-					const notification =
-						"<system-notification>Patches were not applied and must be handled manually.</system-notification>";
-					const patchList =
-						patchPaths.length > 0
-							? `\n\nPatch artifacts:\n${patchPaths.map(patch => `- ${patch}`).join("\n")}`
-							: "";
-					patchApplySummary = `\n\n${notification}${patchList}`;
+					if (changesApplied) {
+						mergeSummary = "\n\nApplied patches: yes";
+					} else {
+						const notification =
+							"<system-notification>Patches were not applied and must be handled manually.</system-notification>";
+						const patchList =
+							patchPaths.length > 0
+								? `\n\nPatch artifacts:\n${patchPaths.map(patch => `- ${patch}`).join("\n")}`
+								: "";
+						mergeSummary = `\n\n${notification}${patchList}`;
+					}
+				}
+			}
+
+			// Apply nested repo patches (separate from parent git)
+			if (isIsolated && repoRoot && (mergeMode === "branch" || changesApplied !== false)) {
+				const allNestedPatches = results
+					.filter(r => {
+						if (!r.nestedPatches || r.nestedPatches.length === 0 || r.exitCode !== 0 || r.aborted) {
+							return false;
+						}
+						if (mergeMode !== "branch") {
+							return true;
+						}
+						if (!r.branchName || !mergedBranchesForNestedPatches) {
+							return false;
+						}
+						return mergedBranchesForNestedPatches.has(r.branchName);
+					})
+					.flatMap(r => r.nestedPatches!);
+				if (allNestedPatches.length > 0) {
+					try {
+						const commitMsg =
+							commitStyle === "ai" && this.session.modelRegistry
+								? async (diff: string) => {
+										const smolModel = this.session.settings.getModelRole("smol");
+										return generateCommitMessage(
+											diff,
+											this.session.modelRegistry!,
+											smolModel,
+											this.session.getSessionId?.() ?? undefined,
+										);
+									}
+								: undefined;
+						await applyNestedPatches(repoRoot, allNestedPatches, commitMsg);
+					} catch {
+						// Nested patch failures are non-fatal to the parent merge
+						mergeSummary +=
+							"\n\n<system-notification>Some nested repository patches failed to apply.</system-notification>";
+					}
 				}
 			}
 
 			// Build final output - match plugin format
-			const successCount = results.filter(r => r.exitCode === 0).length;
+			const successCount = results.filter(r => r.exitCode === 0 && !r.error).length;
 			const cancelledCount = results.filter(r => r.aborted).length;
 			const totalDuration = Date.now() - startTime;
 
 			const summaries = results.map(r => {
-				const status = r.aborted ? "cancelled" : r.exitCode === 0 ? "completed" : `failed (exit ${r.exitCode})`;
+				const status = r.aborted
+					? "cancelled"
+					: r.exitCode === 0 && r.error
+						? "merge failed"
+						: r.exitCode === 0
+							? "completed"
+							: `failed (exit ${r.exitCode})`;
 				const output = r.output.trim() || r.stderr.trim() || "(no output)";
 				const outputCharCount = r.outputMeta?.charCount ?? output.length;
 				const fullOutputThreshold = 5000;
@@ -1021,12 +1162,12 @@ export class TaskTool implements AgentTool<TaskSchema, TaskToolDetails, Theme> {
 				summaries,
 				outputIds,
 				agentName,
-				patchApplySummary,
+				mergeSummary,
 			});
 
 			// Cleanup temp directory if used
 			const shouldCleanupTempArtifacts =
-				tempArtifactsDir && (!isIsolated || patchesApplied === true || patchesApplied === null);
+				tempArtifactsDir && (!isIsolated || changesApplied === true || changesApplied === null);
 			if (shouldCleanupTempArtifacts) {
 				await fs.rm(tempArtifactsDir, { recursive: true, force: true });
 			}
diff --git a/packages/coding-agent/src/task/render.ts b/packages/coding-agent/src/task/render.ts
index 2682f9db6..cfefaea9b 100644
--- a/packages/coding-agent/src/task/render.ts
+++ b/packages/coding-agent/src/task/render.ts
@@ -728,7 +728,8 @@ function renderAgentResult(result: SingleResult, isLast: boolean, expanded: bool
 		result.output,
 	);
 	const aborted = result.aborted ?? false;
-	const success = !aborted && result.exitCode === 0;
+	const mergeFailed = !aborted && result.exitCode === 0 && !!result.error;
+	const success = !aborted && result.exitCode === 0 && !result.error;
 	const needsWarning = Boolean(missingCompleteWarning) && success;
 	const icon = aborted
 		? theme.status.aborted
@@ -737,8 +738,16 @@ function renderAgentResult(result: SingleResult, isLast: boolean, expanded: bool
 			: success
 				? theme.status.success
 				: theme.status.error;
-	const iconColor = needsWarning ? "warning" : success ? "success" : "error";
-	const statusText = aborted ? "aborted" : needsWarning ? "warning" : success ? "done" : "failed";
+	const iconColor = needsWarning ? "warning" : success ? "success" : mergeFailed ? "warning" : "error";
+	const statusText = aborted
+		? "aborted"
+		: needsWarning
+			? "warning"
+			: success
+				? "done"
+				: mergeFailed
+					? "merge failed"
+					: "failed";
 
 	// Main status line: id: description [status] · stats · ⟨agent⟩
 	const description = result.description?.trim();
@@ -847,11 +856,13 @@ function renderAgentResult(result: SingleResult, isLast: boolean, expanded: bool
 
 	if (result.patchPath && !aborted && result.exitCode === 0) {
 		lines.push(`${continuePrefix}${theme.fg("dim", `Patch: ${result.patchPath}`)}`);
+	} else if (result.branchName && !aborted && result.exitCode === 0) {
+		lines.push(`${continuePrefix}${theme.fg("dim", `Branch: ${result.branchName}`)}`);
 	}
 
 	// Error message
-	if (result.error && !success) {
-		lines.push(`${continuePrefix}${theme.fg("error", truncateToWidth(result.error, 70))}`);
+	if (result.error && (!success || mergeFailed)) {
+		lines.push(`${continuePrefix}${theme.fg(mergeFailed ? "warning" : "error", truncateToWidth(result.error, 70))}`);
 	}
 
 	return lines;
@@ -902,15 +913,20 @@ export function renderResult(
 				});
 
 				const abortedCount = details.results.filter(r => r.aborted).length;
-				const successCount = details.results.filter(r => !r.aborted && r.exitCode === 0).length;
-				const failCount = details.results.length - successCount - abortedCount;
+				const mergeFailedCount = details.results.filter(r => !r.aborted && r.exitCode === 0 && r.error).length;
+				const successCount = details.results.filter(r => !r.aborted && r.exitCode === 0 && !r.error).length;
+				const failCount = details.results.length - successCount - mergeFailedCount - abortedCount;
 				let summary = `${theme.fg("dim", "Total:")} `;
 				if (abortedCount > 0) {
 					summary += theme.fg("error", `${abortedCount} aborted`);
-					if (successCount > 0 || failCount > 0) summary += theme.sep.dot;
+					if (successCount > 0 || mergeFailedCount > 0 || failCount > 0) summary += theme.sep.dot;
 				}
 				if (successCount > 0) {
 					summary += theme.fg("success", `${successCount} succeeded`);
+					if (mergeFailedCount > 0 || failCount > 0) summary += theme.sep.dot;
+				}
+				if (mergeFailedCount > 0) {
+					summary += theme.fg("warning", `${mergeFailedCount} merge failed`);
 					if (failCount > 0) summary += theme.sep.dot;
 				}
 				if (failCount > 0) {
diff --git a/packages/coding-agent/src/task/types.ts b/packages/coding-agent/src/task/types.ts
index fbe6d43cd..80ea0da33 100644
--- a/packages/coding-agent/src/task/types.ts
+++ b/packages/coding-agent/src/task/types.ts
@@ -2,6 +2,7 @@ import type { ThinkingLevel } from "@oh-my-pi/pi-agent-core";
 import type { Usage } from "@oh-my-pi/pi-ai";
 import { $env } from "@oh-my-pi/pi-utils";
 import { type Static, Type } from "@sinclair/typebox";
+import type { NestedRepoPatch } from "./worktree";
 
 /** Source of an agent definition */
 export type AgentSource = "bundled" | "user" | "project";
@@ -77,7 +78,7 @@ const createTaskSchema = (options: { isolationEnabled: boolean }) => {
 			...properties,
 			isolated: Type.Optional(
 				Type.Boolean({
-					description: "Run in isolated git worktree; returns patches. Use when tasks edit overlapping files.",
+					description: "Run in isolated environment; returns patches. Use when tasks edit overlapping files.",
 				}),
 			),
 		});
@@ -179,6 +180,10 @@ export interface SingleResult {
 	outputPath?: string;
 	/** Patch path for isolated worktree output */
 	patchPath?: string;
+	/** Branch name for isolated branch-mode output */
+	branchName?: string;
+	/** Nested repo patches to apply after parent merge */
+	nestedPatches?: NestedRepoPatch[];
 	/** Data extracted by registered subprocess tool handlers (keyed by tool name) */
 	extractedToolData?: Record<string, unknown[]>;
 	/** Output metadata for agent:// URL integration */
diff --git a/packages/coding-agent/src/task/worktree.ts b/packages/coding-agent/src/task/worktree.ts
index f49af82f5..93cc09d3a 100644
--- a/packages/coding-agent/src/task/worktree.ts
+++ b/packages/coding-agent/src/task/worktree.ts
@@ -1,16 +1,26 @@
+import type { Dirent } from "node:fs";
 import * as fs from "node:fs/promises";
 import * as os from "node:os";
 import path from "node:path";
-import { getWorktreeDir, isEnoent, Snowflake } from "@oh-my-pi/pi-utils";
+import { getWorktreeDir, isEnoent, logger, Snowflake } from "@oh-my-pi/pi-utils";
 import { $ } from "bun";
 
-export interface WorktreeBaseline {
+/** Baseline state for a single git repository. */
+export interface RepoBaseline {
 	repoRoot: string;
+	headCommit: string;
 	staged: string;
 	unstaged: string;
 	untracked: string[];
 }
 
+/** Baseline state for the project, including any nested git repos. */
+export interface WorktreeBaseline {
+	root: RepoBaseline;
+	/** Nested git repos (path relative to root.repoRoot). */
+	nested: Array<{ relativePath: string; baseline: RepoBaseline }>;
+}
+
 export function getEncodedProjectName(cwd: string): string {
 	return `--${cwd.replace(/^[/\\]/, "").replace(/[/\\:]/g, "-")}--`;
 }
@@ -38,7 +48,56 @@ export async function ensureWorktree(baseCwd: string, id: string): Promise<strin
 	return worktreeDir;
 }
 
-export async function captureBaseline(repoRoot: string): Promise<WorktreeBaseline> {
+/** Find nested git repositories (non-submodule) under the given root. */
+async function discoverNestedRepos(repoRoot: string): Promise<string[]> {
+	// Get submodule paths so we can exclude them
+	const submoduleRaw = await $`git submodule --quiet foreach --recursive 'echo $sm_path'`
+		.cwd(repoRoot)
+		.quiet()
+		.nothrow()
+		.text();
+	const submodulePaths = new Set(
+		submoduleRaw
+			.split("\n")
+			.map(l => l.trim())
+			.filter(Boolean),
+	);
+
+	// Find all .git dirs/files that aren't the root or known submodules
+	const result: string[] = [];
+	async function walk(dir: string): Promise<void> {
+		let entries: Dirent[];
+		try {
+			entries = await fs.readdir(dir, { withFileTypes: true });
+		} catch {
+			return;
+		}
+		for (const entry of entries) {
+			if (entry.name === "node_modules" || entry.name === ".git") continue;
+			if (!entry.isDirectory()) continue;
+			const full = path.join(dir, entry.name);
+			const rel = path.relative(repoRoot, full);
+			// Check if this directory is itself a git repo
+			const gitDir = path.join(full, ".git");
+			let hasGit = false;
+			try {
+				await fs.access(gitDir);
+				hasGit = true;
+			} catch {}
+			if (hasGit && !submodulePaths.has(rel)) {
+				result.push(rel);
+				// Don't recurse into nested repos — they manage their own tree
+				continue;
+			}
+			await walk(full);
+		}
+	}
+	await walk(repoRoot);
+	return result;
+}
+
+async function captureRepoBaseline(repoRoot: string): Promise<RepoBaseline> {
+	const headCommit = (await $`git rev-parse HEAD`.cwd(repoRoot).quiet().text()).trim();
 	const staged = await $`git diff --cached --binary`.cwd(repoRoot).quiet().text();
 	const unstaged = await $`git diff --binary`.cwd(repoRoot).quiet().text();
 	const untrackedRaw = await $`git ls-files --others --exclude-standard`.cwd(repoRoot).quiet().text();
@@ -46,13 +105,18 @@ export async function captureBaseline(repoRoot: string): Promise<WorktreeBaselin
 		.split("\n")
 		.map(line => line.trim())
 		.filter(line => line.length > 0);
+	return { repoRoot, headCommit, staged, unstaged, untracked };
+}
 
-	return {
-		repoRoot,
-		staged,
-		unstaged,
-		untracked,
-	};
+export async function captureBaseline(repoRoot: string): Promise<WorktreeBaseline> {
+	const [root, nestedPaths] = await Promise.all([captureRepoBaseline(repoRoot), discoverNestedRepos(repoRoot)]);
+	const nested = await Promise.all(
+		nestedPaths.map(async relativePath => ({
+			relativePath,
+			baseline: await captureRepoBaseline(path.join(repoRoot, relativePath)),
+		})),
+	);
+	return { root, nested };
 }
 
 async function writeTempPatchFile(patch: string): Promise<string> {
@@ -80,13 +144,13 @@ async function applyPatch(
 	}
 }
 
-export async function applyBaseline(worktreeDir: string, baseline: WorktreeBaseline): Promise<void> {
-	await applyPatch(worktreeDir, baseline.staged, { cached: true });
-	await applyPatch(worktreeDir, baseline.staged);
-	await applyPatch(worktreeDir, baseline.unstaged);
+async function applyRepoBaseline(worktreeDir: string, rb: RepoBaseline, sourceRoot: string): Promise<void> {
+	await applyPatch(worktreeDir, rb.staged, { cached: true });
+	await applyPatch(worktreeDir, rb.staged);
+	await applyPatch(worktreeDir, rb.unstaged);
 
-	for (const entry of baseline.untracked) {
-		const source = path.join(baseline.repoRoot, entry);
+	for (const entry of rb.untracked) {
+		const source = path.join(sourceRoot, entry);
 		const destination = path.join(worktreeDir, entry);
 		try {
 			await fs.mkdir(path.dirname(destination), { recursive: true });
@@ -98,6 +162,39 @@ export async function applyBaseline(worktreeDir: string, baseline: WorktreeBasel
 	}
 }
 
+export async function applyBaseline(worktreeDir: string, baseline: WorktreeBaseline): Promise<void> {
+	await applyRepoBaseline(worktreeDir, baseline.root, baseline.root.repoRoot);
+
+	// Restore nested repos into the worktree
+	for (const entry of baseline.nested) {
+		const nestedDir = path.join(worktreeDir, entry.relativePath);
+		// Copy the nested repo wholesale (it's not managed by root git)
+		const sourceDir = path.join(baseline.root.repoRoot, entry.relativePath);
+		try {
+			await fs.cp(sourceDir, nestedDir, { recursive: true });
+		} catch (err) {
+			if (isEnoent(err)) continue;
+			throw err;
+		}
+		// Apply any uncommitted changes from the nested baseline
+		await applyRepoBaseline(nestedDir, entry.baseline, entry.baseline.repoRoot);
+		// Commit baseline state so captureRepoDeltaPatch can cleanly subtract it.
+		// Without this, `git add -A && git commit` by the task would include
+		// baseline untracked files in the diff-tree output.
+		const hasChanges = (await $`git status --porcelain`.cwd(nestedDir).quiet().nothrow().text()).trim();
+		if (hasChanges) {
+			await $`git add -A`.cwd(nestedDir).quiet();
+			await $`git commit -m omp-baseline --allow-empty`.cwd(nestedDir).quiet();
+			// Update baseline to reflect the committed state — prevents double-apply
+			// in captureRepoDeltaPatch's temp-index path
+			entry.baseline.headCommit = (await $`git rev-parse HEAD`.cwd(nestedDir).quiet().text()).trim();
+			entry.baseline.staged = "";
+			entry.baseline.unstaged = "";
+			entry.baseline.untracked = [];
+		}
+	}
+}
+
 async function applyPatchToIndex(cwd: string, patch: string, indexFile: string): Promise<void> {
 	if (!patch.trim()) return;
 	const tempPath = await writeTempPatchFile(patch);
@@ -121,31 +218,62 @@ async function listUntracked(cwd: string): Promise<string[]> {
 		.filter(line => line.length > 0);
 }
 
-export async function captureDeltaPatch(worktreeDir: string, baseline: WorktreeBaseline): Promise<string> {
+async function captureRepoDeltaPatch(repoDir: string, rb: RepoBaseline): Promise<string> {
+	// Check if HEAD advanced (task committed changes)
+	const currentHead = (await $`git rev-parse HEAD`.cwd(repoDir).quiet().nothrow().text()).trim();
+	const headAdvanced = currentHead && currentHead !== rb.headCommit;
+
+	if (headAdvanced) {
+		// HEAD moved: use diff-tree to capture committed changes, plus any uncommitted on top
+		const parts: string[] = [];
+
+		// Committed changes since baseline
+		const committedDiff = await $`git diff-tree -r -p --binary ${rb.headCommit} ${currentHead}`
+			.cwd(repoDir)
+			.quiet()
+			.nothrow()
+			.text();
+		if (committedDiff.trim()) parts.push(committedDiff);
+
+		// Uncommitted changes on top of the new HEAD
+		const staged = await $`git diff --cached --binary`.cwd(repoDir).quiet().text();
+		const unstaged = await $`git diff --binary`.cwd(repoDir).quiet().text();
+		if (staged.trim()) parts.push(staged);
+		if (unstaged.trim()) parts.push(unstaged);
+
+		// New untracked files (relative to both baseline and current tracking)
+		const currentUntracked = await listUntracked(repoDir);
+		const baselineUntracked = new Set(rb.untracked);
+		const newUntracked = currentUntracked.filter(entry => !baselineUntracked.has(entry));
+		if (newUntracked.length > 0) {
+			const untrackedDiffs = await Promise.all(
+				newUntracked.map(entry =>
+					$`git diff --binary --no-index /dev/null ${entry}`.cwd(repoDir).quiet().nothrow().text(),
+				),
+			);
+			parts.push(...untrackedDiffs.filter(d => d.trim()));
+		}
+
+		return parts.join("\n");
+	}
+
+	// HEAD unchanged: use temp index approach (subtracts baseline from delta)
 	const tempIndex = path.join(os.tmpdir(), `omp-task-index-${Snowflake.next()}`);
 	try {
-		await $`git read-tree HEAD`.cwd(worktreeDir).env({
-			GIT_INDEX_FILE: tempIndex,
-		});
-		await applyPatchToIndex(worktreeDir, baseline.staged, tempIndex);
-		await applyPatchToIndex(worktreeDir, baseline.unstaged, tempIndex);
-		const diff = await $`git diff --binary`
-			.cwd(worktreeDir)
-			.env({
-				GIT_INDEX_FILE: tempIndex,
-			})
-			.quiet()
-			.text();
+		await $`git read-tree ${rb.headCommit}`.cwd(repoDir).env({ GIT_INDEX_FILE: tempIndex });
+		await applyPatchToIndex(repoDir, rb.staged, tempIndex);
+		await applyPatchToIndex(repoDir, rb.unstaged, tempIndex);
+		const diff = await $`git diff --binary`.cwd(repoDir).env({ GIT_INDEX_FILE: tempIndex }).quiet().text();
 
-		const currentUntracked = await listUntracked(worktreeDir);
-		const baselineUntracked = new Set(baseline.untracked);
+		const currentUntracked = await listUntracked(repoDir);
+		const baselineUntracked = new Set(rb.untracked);
 		const newUntracked = currentUntracked.filter(entry => !baselineUntracked.has(entry));
 
 		if (newUntracked.length === 0) return diff;
 
 		const untrackedDiffs = await Promise.all(
 			newUntracked.map(entry =>
-				$`git diff --binary --no-index /dev/null ${entry}`.cwd(worktreeDir).quiet().nothrow().text(),
+				$`git diff --binary --no-index /dev/null ${entry}`.cwd(repoDir).quiet().nothrow().text(),
 			),
 		);
 		return `${diff}${diff && !diff.endsWith("\n") ? "\n" : ""}${untrackedDiffs.join("\n")}`;
@@ -154,6 +282,76 @@ export async function captureDeltaPatch(worktreeDir: string, baseline: WorktreeB
 	}
 }
 
+export interface NestedRepoPatch {
+	relativePath: string;
+	patch: string;
+}
+
+export interface DeltaPatchResult {
+	rootPatch: string;
+	nestedPatches: NestedRepoPatch[];
+}
+
+export async function captureDeltaPatch(isolationDir: string, baseline: WorktreeBaseline): Promise<DeltaPatchResult> {
+	const rootPatch = await captureRepoDeltaPatch(isolationDir, baseline.root);
+	const nestedPatches: NestedRepoPatch[] = [];
+
+	for (const { relativePath, baseline: nb } of baseline.nested) {
+		const nestedDir = path.join(isolationDir, relativePath);
+		try {
+			await fs.access(path.join(nestedDir, ".git"));
+		} catch {
+			continue;
+		}
+		const patch = await captureRepoDeltaPatch(nestedDir, nb);
+		if (patch.trim()) nestedPatches.push({ relativePath, patch });
+	}
+
+	return { rootPatch, nestedPatches };
+}
+
+/**
+ * Apply nested repo patches directly to their working directories after parent merge.
+ * @param commitMessage Optional async function to generate a commit message from the combined diff.
+ *                      If omitted or returns null, falls back to a generic message.
+ */
+export async function applyNestedPatches(
+	repoRoot: string,
+	patches: NestedRepoPatch[],
+	commitMessage?: (diff: string) => Promise<string | null>,
+): Promise<void> {
+	// Group patches by target repo to apply all at once and commit
+	const byRepo = new Map<string, NestedRepoPatch[]>();
+	for (const p of patches) {
+		if (!p.patch.trim()) continue;
+		const group = byRepo.get(p.relativePath) ?? [];
+		group.push(p);
+		byRepo.set(p.relativePath, group);
+	}
+
+	for (const [relativePath, repoPatches] of byRepo) {
+		const nestedDir = path.join(repoRoot, relativePath);
+		try {
+			await fs.access(path.join(nestedDir, ".git"));
+		} catch {
+			continue;
+		}
+
+		const combinedDiff = repoPatches.map(p => p.patch).join("\n");
+		for (const { patch } of repoPatches) {
+			await applyPatch(nestedDir, patch);
+		}
+
+		// Commit so nested repo history reflects the task changes
+		const hasChanges = (await $`git status --porcelain`.cwd(nestedDir).quiet().nothrow().text()).trim();
+		if (hasChanges) {
+			const msg = (await commitMessage?.(combinedDiff)) ?? "changes from isolated task(s)";
+			await $`git add -A`.cwd(nestedDir).quiet();
+			await $`git commit -m ${msg}`.cwd(nestedDir).quiet();
+		}
+	}
+}
+
 export async function cleanupWorktree(dir: string): Promise<void> {
 	try {
 		const commonDirRaw = await $`git rev-parse --git-common-dir`.cwd(dir).quiet().nothrow().text();
@@ -167,3 +365,168 @@ export async function cleanupWorktree(dir: string): Promise<void> {
 		await fs.rm(dir, { recursive: true, force: true });
 	}
 }
+
+// ═══════════════════════════════════════════════════════════════════════════
+// Fuse-overlay isolation
+// ═══════════════════════════════════════════════════════════════════════════
+
+export async function ensureFuseOverlay(baseCwd: string, id: string): Promise<string> {
+	const repoRoot = await getRepoRoot(baseCwd);
+	const encodedProject = getEncodedProjectName(repoRoot);
+	const baseDir = getWorktreeDir(encodedProject, id);
+	const upperDir = path.join(baseDir, "upper");
+	const workDir = path.join(baseDir, "work");
+	const mergedDir = path.join(baseDir, "merged");
+
+	// Clean up any stale mount at this path
+	const fusermount = Bun.which("fusermount3") ?? Bun.which("fusermount");
+	if (fusermount) {
+		await $`${fusermount} -u ${mergedDir}`.quiet().nothrow();
+	}
+	await fs.rm(baseDir, { recursive: true, force: true });
+
+	await fs.mkdir(upperDir, { recursive: true });
+	await fs.mkdir(workDir, { recursive: true });
+	await fs.mkdir(mergedDir, { recursive: true });
+
+	const binary = Bun.which("fuse-overlayfs");
+	if (!binary) {
+		await fs.rm(baseDir, { recursive: true, force: true });
+		throw new Error(
+			"fuse-overlayfs not found. Install it (e.g. `apt install fuse-overlayfs` or `pacman -S fuse-overlayfs`) to use fuse-overlay isolation.",
+		);
+	}
+
+	const result = await $`${binary} -o lowerdir=${repoRoot},upperdir=${upperDir},workdir=${workDir} ${mergedDir}`
+		.quiet()
+		.nothrow();
+	if (result.exitCode !== 0) {
+		const stderr = result.stderr.toString().trim();
+		await fs.rm(baseDir, { recursive: true, force: true });
+		throw new Error(`fuse-overlayfs mount failed (exit ${result.exitCode}): ${stderr}`);
+	}
+
+	return mergedDir;
+}
+
+export async function cleanupFuseOverlay(mergedDir: string): Promise<void> {
+	try {
+		const fusermount = Bun.which("fusermount3") ?? Bun.which("fusermount");
+		if (fusermount) {
+			await $`${fusermount} -u ${mergedDir}`.quiet().nothrow();
+		}
+	} finally {
+		// baseDir is the parent of the merged directory
+		const baseDir = path.dirname(mergedDir);
+		await fs.rm(baseDir, { recursive: true, force: true });
+	}
+}
+
+// ═══════════════════════════════════════════════════════════════════════════
+// Branch-mode isolation
+// ═══════════════════════════════════════════════════════════════════════════
+
+export interface CommitToBranchResult {
+	branchName?: string;
+	nestedPatches: NestedRepoPatch[];
+}
+
+/**
+ * Commit task-only changes to a new branch.
+ * Only root repo changes go on the branch. Nested repo patches are returned
+ * separately since the parent git can't track files inside gitlinks.
+ */
+export async function commitToBranch(
+	isolationDir: string,
+	baseline: WorktreeBaseline,
+	taskId: string,
+	description: string | undefined,
+	commitMessage?: (diff: string) => Promise<string | null>,
+): Promise<CommitToBranchResult | null> {
+	const { rootPatch, nestedPatches } = await captureDeltaPatch(isolationDir, baseline);
+	if (!rootPatch.trim() && nestedPatches.length === 0) return null;
+
+	const repoRoot = baseline.root.repoRoot;
+	const branchName = `omp/task/${taskId}`;
+	const fallbackMessage = description || taskId;
+
+	// Only create a branch if the root repo has changes
+	if (rootPatch.trim()) {
+		await $`git branch ${branchName} HEAD`.cwd(repoRoot).quiet();
+		const tmpDir = path.join(os.tmpdir(), `omp-branch-${Snowflake.next()}`);
+		try {
+			await $`git worktree add ${tmpDir} ${branchName}`.cwd(repoRoot).quiet();
+			const patchPath = path.join(os.tmpdir(), `omp-branch-patch-${Snowflake.next()}.patch`);
+			try {
+				await Bun.write(patchPath, rootPatch);
+				const applyResult = await $`git apply --binary ${patchPath}`.cwd(tmpDir).quiet().nothrow();
+				if (applyResult.exitCode !== 0) {
+					const stderr = applyResult.stderr.toString().slice(0, 2000);
+					logger.error("commitToBranch: git apply failed", {
+						taskId,
+						exitCode: applyResult.exitCode,
+						stderr,
+						patchSize: rootPatch.length,
+						patchHead: rootPatch.slice(0, 500),
+					});
+					throw new Error(`git apply failed for task ${taskId}: ${stderr}`);
+				}
+			} finally {
+				await fs.rm(patchPath, { force: true });
+			}
+			await $`git add -A`.cwd(tmpDir).quiet();
+			const msg = (commitMessage && (await commitMessage(rootPatch))) || fallbackMessage;
+			await $`git commit -m ${msg}`.cwd(tmpDir).quiet();
+		} finally {
+			await $`git worktree remove -f ${tmpDir}`.cwd(repoRoot).quiet().nothrow();
+			await fs.rm(tmpDir, { recursive: true, force: true });
+		}
+	}
+
+	return { branchName: rootPatch.trim() ? branchName : undefined, nestedPatches };
+}
+
+export interface MergeBranchResult {
+	merged: string[];
+	failed: string[];
+	conflict?: string;
+}
+
+/**
+ * Cherry-pick task branch commits sequentially onto HEAD.
+ * Each branch has a single commit that gets replayed cleanly.
+ * Stops on first conflict and reports which branches succeeded.
+ */
+export async function mergeTaskBranches(
+	repoRoot: string,
+	branches: Array<{ branchName: string; taskId: string; description?: string }>,
+): Promise<MergeBranchResult> {
+	const merged: string[] = [];
+	const failed: string[] = [];
+
+	for (const { branchName } of branches) {
+		const result = await $`git cherry-pick ${branchName}`.cwd(repoRoot).quiet().nothrow();
+
+		if (result.exitCode !== 0) {
+			await $`git cherry-pick --abort`.cwd(repoRoot).quiet().nothrow();
+			const stderr = result.stderr.toString().trim();
+			failed.push(branchName);
+			return {
+				merged,
+				failed: [...failed, ...branches.slice(merged.length + failed.length).map(b => b.branchName)],
+				conflict: `${branchName}: ${stderr}`,
+			};
+		}
+
+		merged.push(branchName);
+	}
+
+	return { merged, failed };
+}
+
+/** Clean up temporary task branches. */
+export async function cleanupTaskBranches(repoRoot: string, branches: string[]): Promise<void> {
+	for (const branch of branches) {
+		await $`git branch -D ${branch}`.cwd(repoRoot).quiet().nothrow();
+	}
+}
diff --git a/packages/coding-agent/src/utils/commit-message-generator.ts b/packages/coding-agent/src/utils/commit-message-generator.ts
new file mode 100644
index 000000000..726ceca20
--- /dev/null
+++ b/packages/coding-agent/src/utils/commit-message-generator.ts
@@ -0,0 +1,132 @@
+/**
+ * Generate commit messages from diffs using a smol, fast model.
+ * Follows the same pattern as title-generator.ts.
+ */
+import type { Api, Model } from "@oh-my-pi/pi-ai";
+import { completeSimple } from "@oh-my-pi/pi-ai";
+import { logger } from "@oh-my-pi/pi-utils";
+import type { ModelRegistry } from "../config/model-registry";
+import { parseModelString } from "../config/model-resolver";
+import { renderPromptTemplate } from "../config/prompt-templates";
+import MODEL_PRIO from "../priority.json" with { type: "json" };
+import commitSystemPrompt from "../prompts/system/commit-message-system.md" with { type: "text" };
+
+const COMMIT_SYSTEM_PROMPT = renderPromptTemplate(commitSystemPrompt);
+const MAX_DIFF_CHARS = 4000;
+
+/** File patterns that should be excluded from commit message generation diffs. */
+const NOISE_SUFFIXES = [".lock", ".lockb", "-lock.json", "-lock.yaml"];
+
+/** Strip diff hunks for noisy files that drown out real changes. */
+function filterDiffNoise(diff: string): string {
+	const lines = diff.split("\n");
+	const filtered: string[] = [];
+	let skip = false;
+	for (const line of lines) {
+		if (line.startsWith("diff --git ")) {
+			const bPath = line.split(" b/")[1];
+			skip = bPath != null && NOISE_SUFFIXES.some(s => bPath.endsWith(s));
+		}
+		if (!skip) filtered.push(line);
+	}
+	return filtered.join("\n");
+}
+
+function getSmolModelCandidates(registry: ModelRegistry, savedSmolModel?: string): Model<Api>[] {
+	const availableModels = registry.getAvailable();
+	if (availableModels.length === 0) return [];
+
+	const candidates: Model<Api>[] = [];
+	const addCandidate = (model?: Model<Api>): void => {
+		if (!model) return;
+		if (candidates.some(c => c.provider === model.provider && c.id === model.id)) return;
+		candidates.push(model);
+	};
+
+	if (savedSmolModel) {
+		const parsed = parseModelString(savedSmolModel);
+		if (parsed) {
+			const match = availableModels.find(m => m.provider === parsed.provider && m.id === parsed.id);
+			addCandidate(match);
+		}
+	}
+
+	for (const pattern of MODEL_PRIO.smol) {
+		const needle = pattern.toLowerCase();
+		addCandidate(availableModels.find(m => m.id.toLowerCase() === needle));
+		addCandidate(availableModels.find(m => m.id.toLowerCase().includes(needle)));
+	}
+
+	for (const model of availableModels) {
+		addCandidate(model);
+	}
+
+	return candidates;
+}
+
+/**
+ * Generate a commit message from a unified diff.
+ * Returns null if generation fails (caller should fall back to generic message).
+ */
+export async function generateCommitMessage(
+	diff: string,
+	registry: ModelRegistry,
+	savedSmolModel?: string,
+	sessionId?: string,
+): Promise<string | null> {
+	const candidates = getSmolModelCandidates(registry, savedSmolModel);
+	if (candidates.length === 0) {
+		logger.debug("commit-msg-generator: no smol model found");
+		return null;
+	}
+
+	const cleanDiff = filterDiffNoise(diff);
+	const truncatedDiff =
+		cleanDiff.length > MAX_DIFF_CHARS ? `${cleanDiff.slice(0, MAX_DIFF_CHARS)}\n… (truncated)` : cleanDiff;
+	if (!truncatedDiff.trim()) {
+		logger.debug("commit-msg-generator: diff is empty after noise filtering");
+		return null;
+	}
+	const userMessage = `<diff>\n${truncatedDiff}\n</diff>`;
+
+	for (const model of candidates) {
+		const apiKey = await registry.getApiKey(model, sessionId);
+		if (!apiKey) continue;
+
+		try {
+			const response = await completeSimple(
+				model,
+				{
+					systemPrompt: COMMIT_SYSTEM_PROMPT,
+					messages: [{ role: "user", content: userMessage, timestamp: Date.now() }],
+				},
+				{ apiKey, maxTokens: 60 },
+			);
+
+			if (response.stopReason === "error") {
+				logger.debug("commit-msg-generator: error", { model: model.id, error: response.errorMessage });
+				continue;
+			}
+
+			let msg = "";
+			for (const content of response.content) {
+				if (content.type === "text") msg += content.text;
+			}
+			msg = msg.trim();
+			if (!msg) continue;
+
+			// Clean up: remove wrapping quotes, backticks, trailing period
+			msg = msg.replace(/^[`"']|[`"']$/g, "").replace(/\.$/, "");
+
+			logger.debug("commit-msg-generator: generated", { model: model.id, msg });
+			return msg;
+		} catch (err) {
+			logger.debug("commit-msg-generator: error", {
+				model: model.id,
+				error: err instanceof Error ? err.message : String(err),
+			});
+		}
+	}
+
+	return null;
+}
diff --git a/packages/tui/src/terminal-capabilities.ts b/packages/tui/src/terminal-capabilities.ts
index ffe84214d..ec7613c38 100644
--- a/packages/tui/src/terminal-capabilities.ts
+++ b/packages/tui/src/terminal-capabilities.ts
@@ -234,9 +234,12 @@ function calculateImageFit(
 	const fittedWidthPx = imageDimensions.widthPx * scale;
 	const fittedHeightPx = imageDimensions.heightPx * scale;
 
+	const columns = Math.max(1, Math.floor(fittedWidthPx / cellDims.widthPx));
+	const rows = Math.max(1, Math.ceil(fittedHeightPx / cellDims.heightPx));
+
 	return {
-		columns: Math.max(1, Math.floor(fittedWidthPx / cellDims.widthPx)),
-		rows: Math.max(1, Math.ceil(fittedHeightPx / cellDims.heightPx)),
+		columns: maxColumns !== undefined ? Math.min(columns, maxColumns) : columns,
+		rows: maxRows !== undefined ? Math.min(rows, maxRows) : rows,
 	};
 }