diff --git a/agent/subdirectory_hints.py b/agent/subdirectory_hints.py
index b310783244..68512719cb 100644
--- a/agent/subdirectory_hints.py
+++ b/agent/subdirectory_hints.py
@@ -11,14 +11,19 @@ import shlex
 from pathlib import Path
 from typing import Dict, Any, Optional, Set
 
-from agent.prompt_builder import _read_text_with_timeout, _scan_context_content
+from agent.prompt_builder import _read_text_with_timeout, _scan_context_content, _truncate_content
 from agent.search_policy import SEARCH_PRUNE_DIR_NAMES
 
 logger = logging.getLogger(__name__)
 
 # Same filenames as prompt_builder.py, in priority order (first match wins per dir).
 _HINT_FILENAMES = ["AGENTS.override.md", "AGENTS.md", "agents.md", "CLAUDE.md", "claude.md", ".cursorrules"]
-_MAX_HINT_CHARS = 8_000
+# Per-file ceiling for on-demand subdirectory hints. 32 KiB matches Codex's `project_doc_max_bytes` default
+# (Claude Code and Cursor apply none); it is a guard against a stray huge CLAUDE.md in a vendored tree, not a
+# target — keep area AGENTS.md files well under it (~8k) because this text lands in a tool result on the first
+# touch of that directory. Over the ceiling: head+tail kept, marker with the path so the agent can read_file it,
+# and a WARNING in the log (the old 8k silent tail-chop cut apps/desktop/AGENTS.md for months unnoticed).
+_MAX_HINT_CHARS = 32_000
 _PATH_ARG_KEYS = {"path", "file_path", "workdir"}
 _COMMAND_TOOLS = {"terminal"}
 _MAX_ANCESTOR_WALK = 5  # ancestor levels walked per path — bounds deep-path scans
@@ -171,9 +176,8 @@ class SubdirectoryHintTracker:
                 self._loaded_digests.add(digest)
                 # Same security scan as startup context loading.
                 content = _scan_context_content(content, filename)
-                if len(content) > _MAX_HINT_CHARS:
-                    content = content[:_MAX_HINT_CHARS] + f"\n\n[...truncated {filename}: {len(content):,} chars total]"
                 rel_path = self._display_path(hint_path)
+                content = _truncate_content(content, filename, max_chars=_MAX_HINT_CHARS, read_path=rel_path)
                 logger.debug("Loaded subdirectory hints from %s: %s", directory, [rel_path])
                 return f"[Subdirectory context discovered: {rel_path}]\n{content}"  # first match wins per directory
             except Exception as exc:
diff --git a/tests/agent/test_subdirectory_hints.py b/tests/agent/test_subdirectory_hints.py
index 8972027adc..3709a3792b 100644
--- a/tests/agent/test_subdirectory_hints.py
+++ b/tests/agent/test_subdirectory_hints.py
@@ -96,20 +96,35 @@ class TestSubdirectoryHintTracker:
 
 
 
-    def test_truncation_of_large_hints(self, tmp_path):
-        """Hint files over the limit are truncated."""
+    def test_truncation_of_large_hints(self, tmp_path, caplog):
+        """Over the ceiling: head AND tail survive, the marker names the file to read_file, and it is logged
+        (the old silent tail-chop hid a truncated apps/desktop/AGENTS.md for months)."""
+        import logging
+        from agent import subdirectory_hints as sh
         sub = tmp_path / "bigdir"
         sub.mkdir()
-        (sub / "AGENTS.md").write_text("x" * 20_000)
+        body = "HEAD-MARKER " + ("x" * (sh._MAX_HINT_CHARS + 5_000)) + " TAIL-MARKER"
+        (sub / "AGENTS.md").write_text(body)
 
         tracker = SubdirectoryHintTracker(working_dir=str(tmp_path))
-        result = tracker.check_tool_call(
-            "read_file", {"path": str(sub / "file.py")}
-        )
+        with caplog.at_level(logging.WARNING, logger="agent.prompt_builder"):
+            result = tracker.check_tool_call("read_file", {"path": str(sub / "file.py")})
         assert result is not None
-        assert "truncated" in result.lower()
-        # Should be capped
-        assert len(result) < 20_000
+        assert "HEAD-MARKER" in result and "TAIL-MARKER" in result
+        assert "truncated AGENTS.md" in result and "bigdir/AGENTS.md" in result
+        assert len(result) < len(body)
+        assert any("TRUNCATED" in r.message and "AGENTS.md" in r.message for r in caplog.records)
+
+    def test_area_file_under_ceiling_is_delivered_whole(self, tmp_path):
+        """An area AGENTS.md sized like ours (well under the ceiling) arrives intact — no marker."""
+        sub = tmp_path / "gateway"
+        sub.mkdir()
+        body = "# Gateway rules\n" + ("- rule\n" * 1500)   # ~12k chars: over the OLD 8k cap, under the new one
+        (sub / "AGENTS.md").write_text(body)
+        tracker = SubdirectoryHintTracker(working_dir=str(tmp_path))
+        result = tracker.check_tool_call("read_file", {"path": str(sub / "run.py")})
+        assert result is not None and "truncated" not in result.lower()
+        assert result.endswith(body.strip())
 
     def test_empty_args(self, project):
         """Empty args should not crash."""