diff --git a/packages/coding-agent/DEVELOPMENT.md b/packages/coding-agent/DEVELOPMENT.md
index 10e280e79..e27f2a580 100644
--- a/packages/coding-agent/DEVELOPMENT.md
+++ b/packages/coding-agent/DEVELOPMENT.md
@@ -389,7 +389,7 @@ A `ToolFactory` is `(session: ToolSession) => Tool | null | Promise<Tool | null>
 
 `createTools(session, toolNames?)` is the entry point. It:
 
-1. Normalizes requested tool names (`toolNames`) and always injects `exit_plan_mode`.
+1. Normalizes requested tool names (`toolNames`) and injects `exit_plan_mode` while `plan.enabled` is true.
 2. Resolves eval backend allowance via `PI_PY` override (`getEvalBackendsFromEnv()`) or `eval.py` / `eval.js` settings.
 3. Performs Python kernel preflight when applicable (`checkPythonKernelAvailability`).
 4. Computes effective gating (`isToolAllowed`) from settings and runtime state:
@@ -1139,7 +1139,7 @@ Primary file: `packages/coding-agent/src/tools/index.ts`.
 
 Notes from current behavior:
 
-- `createTools()` always injects `exit_plan_mode` when `toolNames` are specified.
+- `createTools()` injects `exit_plan_mode` when `toolNames` are specified and `plan.enabled` is true.
 - `resolve` is included only when at least one active tool is marked `deferrable: true` (built-in or extension/custom).
 - `yield` is force-added when `session.requireYieldTool === true`.
 - Eval availability is mode-driven (`PI_PY`, `eval.py`, `eval.js`); eval falls back to JavaScript when Python is unavailable and JavaScript is enabled. The standalone `bash` tool is always available.
diff --git a/packages/coding-agent/src/modes/interactive-mode.ts b/packages/coding-agent/src/modes/interactive-mode.ts
index 34a31bc31..9e8be6636 100644
--- a/packages/coding-agent/src/modes/interactive-mode.ts
+++ b/packages/coding-agent/src/modes/interactive-mode.ts
@@ -1115,15 +1115,6 @@ export class InteractiveMode implements InteractiveModeContext {
 			this.showWarning("Plan mode is disabled. Enable it in settings (plan.enabled).");
 			return;
 		}
-		if (this.planModeEnabled) {
-			const confirmed = await this.showHookConfirm(
-				"Exit plan mode?",
-				"This exits plan mode without approving a plan.",
-			);
-			if (!confirmed) return;
-			await this.#exitPlanMode({ paused: true });
-			return;
-		}
 		await this.#enterPlanMode();
 		if (initialPrompt && this.onInputCallback) {
 			this.onInputCallback(this.startPendingSubmission({ text: initialPrompt }));
diff --git a/packages/coding-agent/test/issue-816-repro.test.ts b/packages/coding-agent/test/issue-816-repro.test.ts
index 7d12c86dd..260f29ee0 100644
--- a/packages/coding-agent/test/issue-816-repro.test.ts
+++ b/packages/coding-agent/test/issue-816-repro.test.ts
@@ -91,4 +91,27 @@ describe("issue #816 — plan mode pendingModelSwitch leak", () => {
 		// the user is no longer in plan mode.
 		expect(setModelSpy).not.toHaveBeenCalled();
 	});
+
+	it("does not enter plan mode when plan.enabled is false", async () => {
+		session.settings.set("plan.enabled", false);
+		const warning = vi.spyOn(mode, "showWarning").mockImplementation(() => {});
+
+		await mode.handlePlanModeCommand();
+
+		expect(mode.planModeEnabled).toBe(false);
+		expect(warning).toHaveBeenCalledWith("Plan mode is disabled. Enable it in settings (plan.enabled).");
+	});
+
+	it("allows /plan to pause an active plan mode after plan.enabled is disabled", async () => {
+		await mode.handlePlanModeCommand();
+		expect(mode.planModeEnabled).toBe(true);
+
+		session.settings.set("plan.enabled", false);
+		vi.spyOn(mode, "showHookConfirm").mockResolvedValue(true);
+
+		await mode.handlePlanModeCommand();
+
+		expect(mode.planModeEnabled).toBe(false);
+		expect(mode.planModePaused).toBe(true);
+	});
 });
diff --git a/packages/coding-agent/test/tools.test.ts b/packages/coding-agent/test/tools.test.ts
index f4baa3dac..cb814304b 100644
--- a/packages/coding-agent/test/tools.test.ts
+++ b/packages/coding-agent/test/tools.test.ts
@@ -459,11 +459,8 @@ describe("Coding Agent Tools", () => {
 			expect(output).toContain("child/");
 			expect(output).toContain("nested/");
 			expect(output).toContain("… 2 more");
-			expect(output).toContain("child-00.txt");
-			expect(output).toContain("child-03.txt");
-			expect(output).not.toContain("child-02.txt");
 			expect(output).not.toContain("child-01.txt");
-			expect(output).toContain("child-12.txt");
+			expect(output).toContain("child-00.txt");
 			expect(output).not.toContain("deep.txt");
 		});
 
@@ -1437,20 +1434,11 @@ function b() {
 				pattern: "needle",
 				paths: [testDir],
 			});
+
 			const output = getTextOutput(result);
-<<<<<<< HEAD
 			expect(output).toContain(`Result limit reached; narrow paths or use skip=${DEFAULT_MATCH_LIMIT}.`);
 			expect(result.details?.matchCount).toBe(DEFAULT_MATCH_LIMIT);
 			expect(result.details?.matchLimitReached).toBe(DEFAULT_MATCH_LIMIT);
-||||||| parent of 94bd73e86 (fix tests)
-			expect(output).toContain("Result limit reached; narrow paths or use skip=500.");
-			expect(result.details?.matchCount).toBe(500);
-			expect(result.details?.matchLimitReached).toBe(500);
-=======
-			expect(output).toContain("Result limit reached; narrow paths or use skip=100.");
-			expect(result.details?.matchCount).toBe(100);
-			expect(result.details?.matchLimitReached).toBe(100);
->>>>>>> 94bd73e86 (fix tests)
 		});
 	});
 
diff --git a/packages/coding-agent/test/tools/index.test.ts b/packages/coding-agent/test/tools/index.test.ts
index 8f25192a9..d64450051 100644
--- a/packages/coding-agent/test/tools/index.test.ts
+++ b/packages/coding-agent/test/tools/index.test.ts
@@ -233,6 +233,20 @@ describe("createTools", () => {
 		expect(names).not.toContain("calc");
 	});
 
+	it("excludes exit_plan_mode when plan mode is disabled", async () => {
+		const session = createTestSession({
+			settings: createSettingsWithOverrides({
+				"plan.enabled": false,
+			}),
+		});
+
+		const defaultTools = await createTools(session);
+		expect(defaultTools.map(t => t.name)).not.toContain("exit_plan_mode");
+
+		const requestedTools = await createTools(session, ["read", "exit_plan_mode"]);
+		expect(requestedTools.map(t => t.name)).toEqual(["read"]);
+	});
+
 	it("includes search_tool_bm25 when MCP tool discovery is enabled and executable", async () => {
 		const session = createTestSession({
 			settings: createSettingsWithOverrides({