diff --git a/cmd/gnoma/main.go b/cmd/gnoma/main.go
index 37e5f69..da691fd 100644
--- a/cmd/gnoma/main.go
+++ b/cmd/gnoma/main.go
@@ -212,10 +212,12 @@ func main() {
 		systemPrompt = systemPrompt + "\n\n" + summary
 	}
 
-	// Create context window with truncation compaction
+	// Create context window with summarize strategy (falls back to truncation)
+	var compactStrategy gnomactx.Strategy
+	compactStrategy = gnomactx.NewSummarizeStrategy(prov)
 	ctxWindow := gnomactx.NewWindow(gnomactx.WindowConfig{
 		MaxTokens: cfg.Provider.MaxTokens * 20, // rough: max_tokens is per-turn, context window ~20x
-		Strategy:  gnomactx.NewTruncateStrategy(),
+		Strategy:  compactStrategy,
 		Logger:    logger,
 	})
 
diff --git a/internal/context/persist.go b/internal/context/persist.go
new file mode 100644
index 0000000..772c7b6
--- /dev/null
+++ b/internal/context/persist.go
@@ -0,0 +1,53 @@
+package context
+
+import (
+	"fmt"
+	"os"
+	"path/filepath"
+	"strings"
+)
+
+const (
+	// DefaultMaxResultSize is the threshold for persisting tool results.
+	DefaultMaxResultSize = 50_000 // chars
+	// PreviewSize is the number of chars to show inline.
+	PreviewSize = 2000
+	// ToolResultsDir is the subdirectory for persisted results.
+	ToolResultsDir = "tool-results"
+)
+
+// PersistLargeResult checks if a tool result exceeds the size limit.
+// If so, writes it to disk and returns a preview + file path.
+// Otherwise returns the original content unchanged.
+func PersistLargeResult(content, toolUseID, sessionDir string) (string, bool) {
+	if len(content) <= DefaultMaxResultSize {
+		return content, false
+	}
+
+	// Create directory
+	dir := filepath.Join(sessionDir, ToolResultsDir)
+	os.MkdirAll(dir, 0o755)
+
+	// Write full result to disk
+	filename := toolUseID + ".txt"
+	path := filepath.Join(dir, filename)
+	os.WriteFile(path, []byte(content), 0o644)
+
+	// Build preview
+	preview := content
+	if len(preview) > PreviewSize {
+		preview = preview[:PreviewSize]
+	}
+
+	return fmt.Sprintf("<persisted-output>\nFull output saved to: %s\n\nPreview (first %d chars):\n%s\n</persisted-output>",
+		path, PreviewSize, preview), true
+}
+
+// TruncateToolResult truncates a tool result to a maximum size with an indicator.
+func TruncateToolResult(content string, maxSize int) string {
+	if len(content) <= maxSize {
+		return content
+	}
+	lines := strings.Split(content[:maxSize], "\n")
+	return strings.Join(lines, "\n") + fmt.Sprintf("\n\n... (truncated, %d total chars)", len(content))
+}
diff --git a/internal/context/summarize.go b/internal/context/summarize.go
new file mode 100644
index 0000000..544a758
--- /dev/null
+++ b/internal/context/summarize.go
@@ -0,0 +1,130 @@
+package context
+
+import (
+	"context"
+	"fmt"
+	"strings"
+
+	"somegit.dev/Owlibou/gnoma/internal/message"
+	"somegit.dev/Owlibou/gnoma/internal/provider"
+	"somegit.dev/Owlibou/gnoma/internal/stream"
+)
+
+const summarySystemPrompt = `You are a conversation summarizer. Condense the following conversation into a brief summary that preserves:
+- Key decisions made
+- Important file paths and code changes
+- Tool outputs and their results
+- Current task context and progress
+- Any errors or blockers encountered
+
+Be concise but preserve all critical details the assistant needs to continue the conversation coherently.
+Output only the summary, no preamble.`
+
+// SummarizeStrategy uses the LLM to create a summary of older messages.
+// More expensive than truncation but preserves context better.
+type SummarizeStrategy struct {
+	Provider  provider.Provider
+	Model     string // model to use for summarization (empty = provider default)
+	MaxTokens int64  // max tokens for summary output
+}
+
+func NewSummarizeStrategy(prov provider.Provider) *SummarizeStrategy {
+	return &SummarizeStrategy{
+		Provider:  prov,
+		MaxTokens: 2048,
+	}
+}
+
+func (s *SummarizeStrategy) Compact(messages []message.Message, budget int64) ([]message.Message, error) {
+	if len(messages) <= 4 {
+		return messages, nil
+	}
+
+	// Separate system prompt from history
+	var systemMsgs []message.Message
+	var history []message.Message
+
+	for i, m := range messages {
+		if i == 0 && m.Role == message.RoleSystem {
+			systemMsgs = append(systemMsgs, m)
+		} else {
+			history = append(history, m)
+		}
+	}
+
+	if len(history) <= 4 {
+		return messages, nil
+	}
+
+	// Split: old messages to summarize, recent to keep
+	keepRecent := 6
+	if keepRecent > len(history) {
+		keepRecent = len(history)
+	}
+	oldMessages := history[:len(history)-keepRecent]
+	recentMessages := history[len(history)-keepRecent:]
+
+	// Build conversation text for summarization
+	var convText strings.Builder
+	for _, m := range oldMessages {
+		convText.WriteString(fmt.Sprintf("[%s]: %s\n\n", m.Role, m.TextContent()))
+	}
+
+	// Call LLM to summarize
+	summary, err := s.callSummarize(convText.String())
+	if err != nil {
+		// Fall back to truncation on failure
+		trunc := &TruncateStrategy{KeepRecent: keepRecent}
+		return trunc.Compact(messages, budget)
+	}
+
+	// Build new history: system + summary marker + recent
+	summaryMsg := message.NewUserText(fmt.Sprintf("[Conversation summary — %d earlier messages condensed]\n\n%s", len(oldMessages), summary))
+	ackMsg := message.NewAssistantText("Understood, I have the context from the summary. Continuing from here.")
+
+	result := append(systemMsgs, summaryMsg, ackMsg)
+	result = append(result, recentMessages...)
+
+	return result, nil
+}
+
+func (s *SummarizeStrategy) callSummarize(conversationText string) (string, error) {
+	if s.Provider == nil {
+		return "", fmt.Errorf("no provider for summarization")
+	}
+
+	req := provider.Request{
+		Model:        s.Model,
+		SystemPrompt: summarySystemPrompt,
+		Messages: []message.Message{
+			message.NewUserText("Summarize this conversation:\n\n" + conversationText),
+		},
+		MaxTokens: s.MaxTokens,
+	}
+
+	ctx := context.Background()
+	str, err := s.Provider.Stream(ctx, req)
+	if err != nil {
+		return "", fmt.Errorf("summarization stream: %w", err)
+	}
+	defer str.Close()
+
+	// Consume stream, collect text
+	var result strings.Builder
+	for str.Next() {
+		evt := str.Current()
+		if evt.Type == stream.EventTextDelta {
+			result.WriteString(evt.Text)
+		}
+	}
+	if err := str.Err(); err != nil {
+		return "", fmt.Errorf("summarization stream error: %w", err)
+	}
+
+	summary := strings.TrimSpace(result.String())
+	if summary == "" {
+		return "", fmt.Errorf("empty summary returned")
+	}
+
+	return summary, nil
+}
diff --git a/internal/engine/loop.go b/internal/engine/loop.go
index 3997adb..442447a 100644
--- a/internal/engine/loop.go
+++ b/internal/engine/loop.go
@@ -5,6 +5,7 @@ import (
 	"encoding/json"
 	"fmt"
 
+	gnomactx "somegit.dev/Owlibou/gnoma/internal/context"
 	"somegit.dev/Owlibou/gnoma/internal/message"
 	"somegit.dev/Owlibou/gnoma/internal/permission"
 	"somegit.dev/Owlibou/gnoma/internal/provider"
@@ -248,6 +249,12 @@ func (e *Engine) executeTools(ctx context.Context, calls []message.ToolCall, cb
 			output = e.cfg.Firewall.ScanToolResult(output)
 		}
 
+		// Persist large results to disk
+		if persisted, ok := gnomactx.PersistLargeResult(output, call.ID, ".gnoma/sessions"); ok {
+			e.logger.Debug("tool result persisted to disk", "name", call.Name, "size", len(output))
+			output = persisted
+		}
+
 		// Emit tool result event for the UI
 		if cb != nil {
 			cb(stream.Event{
diff --git a/internal/tui/app.go b/internal/tui/app.go
index caf3177..9356b0a 100644
--- a/internal/tui/app.go
+++ b/internal/tui/app.go
@@ -298,6 +298,25 @@ func (m Model) handleCommand(cmd string) (tea.Model, tea.Cmd) {
 	case "/clear":
 		m.messages = nil
 		m.scrollOffset = 0
+		if m.config.Engine != nil {
+			m.config.Engine.Reset()
+		}
+		return m, nil
+
+	case "/compact":
+		if m.config.Engine != nil {
+			if w := m.config.Engine.ContextWindow(); w != nil {
+				compacted, err := w.CompactIfNeeded()
+				if err != nil {
+					m.messages = append(m.messages, chatMessage{role: "error", content: "compaction failed: " + err.Error()})
+				} else if compacted {
+					m.messages = append(m.messages, chatMessage{role: "system", content: "context compacted — older messages summarized"})
+				} else {
+					// Force compaction even if not at threshold
+					m.messages = append(m.messages, chatMessage{role: "system", content: "context usage within budget, no compaction needed"})
+				}
+			}
+		}
 		return m, nil
 
 	case "/incognito":