diff --git a/plugins/matrix-plugin/.gitignore b/.gitignore
similarity index 100%
rename from plugins/matrix-plugin/.gitignore
rename to .gitignore
diff --git a/plugins/matrix-plugin/PLUGIN-DOCS-v2.md b/PLUGIN-DOCS-v2.md
similarity index 100%
rename from plugins/matrix-plugin/PLUGIN-DOCS-v2.md
rename to PLUGIN-DOCS-v2.md
diff --git a/plugins/matrix-plugin/README.md b/README.md
similarity index 100%
rename from plugins/matrix-plugin/README.md
rename to README.md
diff --git a/plugins/matrix-plugin/bun.lock b/bun.lock
similarity index 100%
rename from plugins/matrix-plugin/bun.lock
rename to bun.lock
diff --git a/plugins/matrix-plugin/config-loader.ts b/config-loader.ts
similarity index 100%
rename from plugins/matrix-plugin/config-loader.ts
rename to config-loader.ts
diff --git a/plugins/matrix-plugin/index.ts b/index.ts
similarity index 71%
rename from plugins/matrix-plugin/index.ts
rename to index.ts
index b10487e..9b0ad51 100644
--- a/plugins/matrix-plugin/index.ts
+++ b/index.ts
@@ -21,7 +21,6 @@ function isV2Context(ctx: any): boolean {
 async function runPlugin(ctx: any, options: any, sdkClient?: any) {
   const isV2 = isV2Context(ctx)
   const eventController = new AbortController()
-  let expiryInterval: ReturnType<typeof setInterval> | undefined
   let cleanup: (() => void) | undefined
 
   try {
@@ -39,6 +38,58 @@ async function runPlugin(ctx: any, options: any, sdkClient?: any) {
     const matrix = new MatrixBotClient(options)
     const sessionManager = new SessionManager(options.rateLimitSeconds || 5)
 
+    // Track pending tool calls per session: sessionID -> Map<callID, {roomId, threadRootId, context}>
+    const pendingToolCalls = new Map<string, Map<string, { roomId: string; threadRootId: string; context: any }>>()
+
+    // Track sent messages per session to avoid duplicates
+    const sentMessageIds = new Map<string, Set<string>>()
+
+    // Track Matrix context per OpenCode session
+    const sessionContextMap = new Map<string, { roomId: string; threadRootId: string; context: any }>()
+
+    // Helper: send a message to Matrix
+    async function sendMatrixMessage(roomId: string, threadRootId: string, context: any, text: string): Promise<void> {
+      if (!text.trim()) return
+      await matrix.sendReply(context, text)
+      log(`Matrix: Sent to ${roomId}:${threadRootId} (${text.length} chars)`)
+    }
+
+    // Helper: extract content from parts
+    function extractContent(parts: any[]): { reasoningText: string; mainText: string; toolCallText: string } {
+      let reasoningText = ""
+      let mainText = ""
+      let toolCallText = ""
+      const reasoningTypes = new Set(["reasoning", "thinking", "redwood", "reason"])
+      
+      for (const p of parts) {
+        const content = p?.content || p?.text || ""
+        const pType = p?.type || ""
+        if (reasoningTypes.has(pType)) {
+          reasoningText += content
+        } else if (pType === "tool_call" || pType === "tool") {
+          toolCallText += content
+        } else {
+          mainText += content
+        }
+      }
+      
+      return { reasoningText, mainText, toolCallText }
+    }
+
+    // Helper: format message text
+    function formatMessage(toolCallText: string, reasoningText: string, mainText: string): string {
+      if (toolCallText.trim()) {
+        return `Tool call: ${toolCallText.trim()}`
+      }
+      
+      let responseText = mainText
+      if (reasoningText.trim()) {
+        responseText = `<details><summary>Thoughts</summary>\n\n${reasoningText.trim()}\n\n</details>\n\n---\n\n${mainText}`
+      }
+      
+      return responseText
+    }
+
     // V2 Event subscription for response streaming
     if (isV2) {
       void (async () => {
@@ -50,6 +101,7 @@ async function runPlugin(ctx: any, options: any, sdkClient?: any) {
               if (!sessionId) continue
               const update = (event as { update?: { type: string; content?: string; toolName?: string } }).update
               if (!update) continue
+              log(`V2 event: session=${sessionId}, update.type=${update.type}`)
             }
           }
         } catch (err) {
@@ -62,30 +114,6 @@ async function runPlugin(ctx: any, options: any, sdkClient?: any) {
       })()
     }
 
-    // V1 Event subscription for response streaming
-    if (!isV2 && sdkClient) {
-      void (async () => {
-        try {
-          const events = await sdkClient.event.subscribe()
-          for await (const event of events.stream) {
-            const eventType = event.type || ""
-            if (eventType === "session.updated") {
-              const sessionId = event.properties?.sessionID
-              if (!sessionId) continue
-              const update = event.properties?.update
-              if (!update) continue
-            }
-          }
-        } catch (err) {
-          if (String(err).includes("AbortError") || (err as { name?: string }).name === "AbortError") {
-            // expected during cleanup
-          } else {
-            log(`V1 event subscription error: ${String(err)}`)
-          }
-        }
-      })()
-    }
-
     // Message handler
     matrix.on(async (data: any) => {
       const { context, query, sender, roomId, eventId, timestamp } = data
@@ -133,6 +161,7 @@ async function runPlugin(ctx: any, options: any, sdkClient?: any) {
           }
           session.opencodeSessionId = opencodeSessionId
           sessionManager.saveSession(roomId, threadRootId, opencodeSessionId)
+          sessionContextMap.set(opencodeSessionId, { roomId, threadRootId, context })
         } catch (createErr: any) {
           log(`Failed to create session: ${String(createErr)}`)
           session.isActive = false
@@ -157,66 +186,87 @@ async function runPlugin(ctx: any, options: any, sdkClient?: any) {
           // V1: use SDK client.session.prompt()
           log(`V1: Sending prompt to session ${opencodeSessionId}: ${query}`)
 
+          // Start polling for new messages
+          const pollInterval = setInterval(async () => {
+            if (!session.isActive) {
+              clearInterval(pollInterval)
+              return
+            }
+            
+            try {
+              const existingIds = sentMessageIds.get(opencodeSessionId) || new Set()
+              const messagesResult = await sdkClient.session.messages({
+                path: { id: opencodeSessionId },
+              })
+              
+              const messages = messagesResult?.data || []
+              if (Array.isArray(messages)) {
+                for (const msg of messages) {
+                  const msgId = msg?.info?.id || msg?.id
+                  if (!msgId || existingIds.has(msgId)) continue
+                  
+                  const role = msg?.info?.role || ""
+                  if (role !== "assistant" && role !== "tool_call") continue
+                  
+                  const parts = msg?.parts || msg?.info?.parts || []
+                  const { reasoningText, mainText, toolCallText } = extractContent(parts)
+                  const responseText = formatMessage(toolCallText, reasoningText, mainText)
+                  
+                  if (responseText.trim()) {
+                    await matrix.sendReply(context, responseText)
+                    log(`V1: Sent message ${msgId} (role=${role}, ${responseText.length} chars)`)
+                    existingIds.add(msgId)
+                  }
+                }
+              }
+              
+              sentMessageIds.set(opencodeSessionId, existingIds)
+            } catch (err) {
+              log(`V1: Error during polling: ${String(err)}`)
+            }
+          }, 1000)
+
           try {
             const result = await sdkClient.session.prompt({
               path: { id: opencodeSessionId },
               body: { parts: [{ type: "text", text: query }] },
             })
-            log(`V1: prompt result keys=${Object.keys(result || {})}`)
-            log(`V1: prompt result.data.keys=${result?.data ? Object.keys(result.data).join(",") : "null"}`)
-            if (result?.data?.parts) {
-              log(`V1: data.parts count=${result.data.parts.length}`)
-              log(`V1: data.parts.types=${result.data.parts.map((p: any) => p.type).join(",")}`)
-              log(`V1: data.parts[0]=${JSON.stringify(result.data.parts[0]).slice(0, 200)}`)
-            }
             
-            // Try to extract content from various locations, separating reasoning from main text
-            let reasoningText = ""
-            let mainText = ""
-            const reasoningTypes = new Set(["reasoning", "thinking", "redwood", "reason"])
-            if (result?.data?.parts) {
-              for (const p of result.data.parts) {
-                const content = p.content || p.text || ""
-                if (reasoningTypes.has(p.type)) {
-                  reasoningText += content
-                } else {
-                  mainText += content
+            // Stop polling
+            clearInterval(pollInterval)
+            
+            // Send any remaining messages
+            try {
+              const existingIds = sentMessageIds.get(opencodeSessionId) || new Set()
+              const messagesResult = await sdkClient.session.messages({
+                path: { id: opencodeSessionId },
+              })
+              
+              const messages = messagesResult?.data || []
+              if (Array.isArray(messages)) {
+                for (const msg of messages) {
+                  const msgId = msg?.info?.id || msg?.id
+                  if (!msgId || existingIds.has(msgId)) continue
+                  
+                  const role = msg?.info?.role || ""
+                  if (role !== "assistant" && role !== "tool_call") continue
+                  
+                  const parts = msg?.parts || msg?.info?.parts || []
+                  const { reasoningText, mainText, toolCallText } = extractContent(parts)
+                  const responseText = formatMessage(toolCallText, reasoningText, mainText)
+                  
+                  if (responseText.trim()) {
+                    await matrix.sendReply(context, responseText)
+                    log(`V1: Sent message ${msgId} (role=${role}, ${responseText.length} chars)`)
+                    existingIds.add(msgId)
+                  }
                 }
               }
-            } else if (result?.data?.info?.parts) {
-              for (const p of result.data.info.parts) {
-                const content = p.content || p.text || ""
-                if (reasoningTypes.has(p.type)) {
-                  reasoningText += content
-                } else {
-                  mainText += content
-                }
-              }
-            } else if (result?.data?.message?.parts) {
-              for (const p of result.data.message.parts) {
-                const content = p.content || p.text || ""
-                if (reasoningTypes.has(p.type)) {
-                  reasoningText += content
-                } else {
-                  mainText += content
-                }
-              }
-            } else if (result?.data?.content) {
-              mainText = result.data.content
-            } else if (result?.response?.content) {
-              mainText = result.response.content
-            } else if (result?.content) {
-              mainText = result.content
+              
+              sentMessageIds.set(opencodeSessionId, existingIds)
+            } catch (err) {
+              log(`V1: Error sending final messages: ${String(err)}`)
             }
-            
-            let responseText = mainText
-            if (reasoningText.trim()) {
-              responseText = `<details><summary>Thoughts</summary>\n\n${reasoningText.trim()}\n\n</details>\n\n---\n\n${mainText}`
-            }
-            
-            session.outputChars += responseText.length
-            await matrix.sendReply(context, responseText)
-            log(`V1: Response sent (${responseText.length} chars)`)
           } catch (promptErr: any) {
             log(`V1 prompt error: ${String(promptErr)}`)
             const errMsg = promptErr?.response?.error?.message || promptErr?.error?.message || String(promptErr)
@@ -236,6 +286,7 @@ async function runPlugin(ctx: any, options: any, sdkClient?: any) {
       } finally {
         session.isActive = false
         session.lastActivity = Date.now()
+        sessionContextMap.delete(opencodeSessionId)
         releaseQuery()
       }
     })
@@ -317,7 +368,7 @@ async function runPlugin(ctx: any, options: any, sdkClient?: any) {
       }
     })
 
-    // Start Matrix client
+    // V2 Storage - defensive access
     if (isV2 && ctx?.storage) {
       await ctx.storage.set("matrix/plugin_version", "1.0.0")
       await ctx.storage.set("matrix/started_at", new Date().toISOString())
diff --git a/plugins/matrix-plugin/logger.ts b/logger.ts
similarity index 100%
rename from plugins/matrix-plugin/logger.ts
rename to logger.ts
diff --git a/plugins/matrix-plugin/matrix-client.ts b/matrix-client.ts
similarity index 100%
rename from plugins/matrix-plugin/matrix-client.ts
rename to matrix-client.ts
diff --git a/plugins/matrix-plugin/package-lock.json b/package-lock.json
similarity index 100%
rename from plugins/matrix-plugin/package-lock.json
rename to package-lock.json
diff --git a/plugins/matrix-plugin/package.json b/package.json
similarity index 100%
rename from plugins/matrix-plugin/package.json
rename to package.json
diff --git a/plugins/matrix-plugin/session-manager.ts b/session-manager.ts
similarity index 100%
rename from plugins/matrix-plugin/session-manager.ts
rename to session-manager.ts
diff --git a/plugins/matrix-plugin/tsconfig.json b/tsconfig.json
similarity index 100%
rename from plugins/matrix-plugin/tsconfig.json
rename to tsconfig.json
diff --git a/plugins/matrix-plugin/types.ts b/types.ts
similarity index 100%
rename from plugins/matrix-plugin/types.ts
rename to types.ts