diff --git a/extensions/gentle-agents.ts b/extensions/gentle-agents.ts
index 870d2bfc0..11ef4b495 100644
--- a/extensions/gentle-agents.ts
+++ b/extensions/gentle-agents.ts
@@ -1666,6 +1666,9 @@ export default function gentleAgents(pi: ExtensionAPI, env: NodeJS.ProcessEnv =
 		const parentRepositoryIdentity = resolveCanonicalGitRepositoryIdentitySync(parentWorktreeRoot);
 		const childEnv = { ...deps.env };
 		if (foreign) for (const key of inheritedUnsafeGitEnvironmentKeys(childEnv)) delete childEnv[key];
+		const activeMcpTools = typeof pi.getAllTools === "function"
+			? pi.getAllTools().map((tool) => tool.name).filter((name) => name.startsWith("mcp__"))
+			: undefined;
 		const request: TaskRequest = {
 			agent,
 			prompt,
@@ -1674,6 +1677,7 @@ export default function gentleAgents(pi: ExtensionAPI, env: NodeJS.ProcessEnv =
 			mode,
 			cwd: target ?? parentWorktreeRoot,
 			parentSessionId,
+			...(activeMcpTools && activeMcpTools.length > 0 ? { mcpTools: activeMcpTools } : {}),
 			...(admittedModel === undefined ? {} : { beforeSpawn: () => {
 				if (!current()) throw new Error("Writer session changed before spawn.");
 				registry.validate(originalCwd);
diff --git a/lib/agents-runner.ts b/lib/agents-runner.ts
index 7b28b0077..dc35f6aa9 100644
--- a/lib/agents-runner.ts
+++ b/lib/agents-runner.ts
@@ -129,6 +129,8 @@ export interface TaskRequest {
 	sessionDir: string;
 	resumeSessionPath: string | undefined;
 	env: NodeJS.ProcessEnv;
+	// Active parent MCP tools for dynamic runtime capability expansion (#1686).
+	mcpTools?: readonly string[] | string[];
 	// Host-provided only: the launcher's package injection signal (#1690) or
 	// the curated fallback. Never derived from tool input or agent definitions.
 	extensionPaths?: string[];
@@ -270,9 +272,40 @@ export function formatChildExit(code: number | null | undefined, signal?: string
 
 const hostProcess: ProcessControl = { platform: process.platform, kill: (pid, signal) => process.kill(pid, signal) };
 
+/**
+ * Expands declared agent tools for Pi 1.0 native MCP execution (#1686).
+ * When `mcp` is declared, it is treated as a runtime capability sentinel:
+ * 1. Omit the retired literal `mcp` token.
+ * 2. Add `codemode` and `tool_search` to enable Pi 1.0 native MCP execution and discovery.
+ * 3. Add all active parent MCP tools (`mcp__*`).
+ * When a scoped prefix like `mcp__<server>` is declared, it expands to `codemode`,
+ * `tool_search`, and matching `mcp__<server>__*` tools only when matching active tools exist.
+ * If no matching tools exist for that server prefix, discovery tools are omitted.
+ * Agents without `mcp` retain strict isolation with no MCP tools added.
+ */
+export function expandChildTools(tools: readonly string[], activeMcpTools: readonly string[] = []): string[] {
+	if (tools.length === 0) return [];
+	const expanded: string[] = [];
+	for (const tool of tools) {
+		if (tool === "mcp") {
+			expanded.push("codemode", "tool_search", ...activeMcpTools);
+		} else if (/^mcp__[a-zA-Z0-9_-]+$/.test(tool)) {
+			const prefix = `${tool}__`;
+			const matched = activeMcpTools.filter((t) => t.startsWith(prefix));
+			if (matched.length > 0) {
+				expanded.push("codemode", "tool_search", ...matched);
+			}
+		} else {
+			expanded.push(tool);
+		}
+	}
+	return [...new Set([...expanded, PARENT_NOTIFICATION_TOOL])];
+}
+
 // The --tools value, or undefined when Pi keeps its default tools.
 function requestedTools(request: TaskRequest): string | undefined {
-	const tools = request.agent.tools.length > 0 ? [...new Set([...request.agent.tools, PARENT_NOTIFICATION_TOOL])] : DEFAULT_TOOLS;
+	const rawTools = request.agent.tools;
+	const tools = rawTools.length > 0 ? expandChildTools(rawTools, request.mcpTools) : DEFAULT_TOOLS;
 	return tools.length > 0 ? tools.join(",") : undefined;
 }
 
diff --git a/odd/tasks/fix-1686-child-agents-native-mcp-allowlist.md b/odd/tasks/fix-1686-child-agents-native-mcp-allowlist.md
new file mode 100644
index 000000000..32f5a9acf
--- /dev/null
+++ b/odd/tasks/fix-1686-child-agents-native-mcp-allowlist.md
@@ -0,0 +1,25 @@
+# Dynamic MCP capability expansion for subagents on Pi 1.0 (#1686)
+
+## Objective and scope
+Restore MCP server access for Gentle child agents running on Pi 1.0 native MCP. Because `pi-mcp-adapter` was retired and `--tools` in Pi 1.0 is a strict filter without glob support, child agents with `tools: ... mcp` lose access to all MCP tools.
+Treat `mcp` in agent frontmatter as a runtime capability sentinel:
+1. Dynamically expand `mcp` into `codemode`, `tool_search`, and all active `mcp__*` tools from the parent session (`request.mcpTools`).
+2. Drop the retired literal `"mcp"` token from the child's `--tools` CLI arguments.
+3. Support server-scoped tokens (`mcp__<server>`) expanding to tools matching `mcp__<server>__*`.
+4. Preserve strict isolation for agents without `mcp` in their frontmatter.
+
+## Completed tasks
+- [x] T1: Strict TDD test reproducing lack of MCP expansion in `childArguments`.
+- [x] T2: Implement `expandChildTools` in `lib/agents-runner.ts` and wire it into `childArguments`.
+- [x] T3: Add `mcpTools` to `TaskRequest` in `lib/agents-runner.ts` and populate it from `pi.getAllTools()` in `extensions/gentle-agents.ts`.
+- [x] T4: Verify with unit tests in `tests/agents-runner.test.ts` and `tests/gentle-agents.test.ts`, plus typecheck and package checks.
+- [x] T5: Code review follow-up: omit `codemode` and `tool_search` when scoped `mcp__<server>` matches no active tools, and verify generic `mcp` expansion with empty tool list.
+
+## Evidence
+Base: upstream/main at cf3012f7. Branch: fix/1686-child-agents-native-mcp-allowlist.
+- TDD RED: 2 failed / 1 passed in `tests/agents-runner.test.ts`.
+- TDD GREEN: 89/89 passed in `tests/agents-runner.test.ts`.
+- Agents extension suite: 190/190 passed in `tests/gentle-agents.test.ts`.
+- Review follow-up: 91/91 passed in `tests/agents-runner.test.ts` (TDD RED: 1 failed / 90 passed, TDD GREEN: 91/91 passed).
+- Typecheck: 186 recorded baseline diagnostics, 0 regressions, 12 improved.
+- Package integrity: 155 files, 69 exact byte-pinned artifacts checked.
diff --git a/tests/agents-runner.test.ts b/tests/agents-runner.test.ts
index 82564c6d8..4a003eedd 100644
--- a/tests/agents-runner.test.ts
+++ b/tests/agents-runner.test.ts
@@ -731,6 +731,98 @@ test("childArguments grants every child the notification-only parent message too
 	assert.equal(args[args.indexOf("--tools") + 1], "read,grep,subagent_parent_message");
 });
 
+test("childArguments dynamically expands mcp sentinel into codemode, tool_search, and active mcp tools (#1686)", () => {
+	const activeMcpTools = [
+		"mcp__context7__resolve_library_id",
+		"mcp__context7__get_docs",
+		"mcp__notion__search",
+	];
+	const req = request({
+		agent: { ...explorer, tools: ["read", "grep", "mcp"] },
+		mcpTools: activeMcpTools,
+	});
+	const args = childArguments(req);
+	const toolsArg = args[args.indexOf("--tools") + 1];
+	const tools = toolsArg.split(",");
+
+	assert.ok(!tools.includes("mcp"), "retired mcp token must be omitted from --tools");
+	assert.ok(tools.includes("codemode"), "codemode must be present when mcp is declared");
+	assert.ok(tools.includes("tool_search"), "tool_search must be present when mcp is declared");
+	for (const mcpTool of activeMcpTools) {
+		assert.ok(tools.includes(mcpTool), `${mcpTool} must be included in --tools`);
+	}
+	assert.ok(tools.includes("read") && tools.includes("grep") && tools.includes("subagent_parent_message"));
+});
+
+test("childArguments expands scoped mcp__<server> tokens to matching active tools (#1686)", () => {
+	const activeMcpTools = [
+		"mcp__context7__resolve_library_id",
+		"mcp__context7__get_docs",
+		"mcp__notion__search",
+	];
+	const req = request({
+		agent: { ...explorer, tools: ["read", "mcp__context7"] },
+		mcpTools: activeMcpTools,
+	});
+	const args = childArguments(req);
+	const toolsArg = args[args.indexOf("--tools") + 1];
+	const tools = toolsArg.split(",");
+
+	assert.ok(!tools.includes("mcp__context7"), "server prefix token must be expanded");
+	assert.ok(tools.includes("codemode") && tools.includes("tool_search"));
+	assert.ok(tools.includes("mcp__context7__resolve_library_id"));
+	assert.ok(tools.includes("mcp__context7__get_docs"));
+	assert.ok(!tools.includes("mcp__notion__search"), "unscoped servers must not be included");
+});
+
+test("childArguments preserves strict tool isolation when agent omits mcp (#1686)", () => {
+	const activeMcpTools = ["mcp__context7__resolve_library_id"];
+	const req = request({
+		agent: { ...explorer, tools: ["read", "bash"] },
+		mcpTools: activeMcpTools,
+	});
+	const args = childArguments(req);
+	const toolsArg = args[args.indexOf("--tools") + 1];
+	const tools = toolsArg.split(",");
+
+	assert.ok(!tools.includes("codemode"));
+	assert.ok(!tools.includes("tool_search"));
+	assert.ok(!tools.includes("mcp__context7__resolve_library_id"));
+	assert.deepEqual(tools, ["read", "bash", "subagent_parent_message"]);
+});
+
+test("childArguments retains codemode and tool_search when mcp is declared even with no active MCP tools (#1686)", () => {
+	const req = request({
+		agent: { ...explorer, tools: ["read", "mcp"] },
+		mcpTools: [],
+	});
+	const args = childArguments(req);
+	const toolsArg = args[args.indexOf("--tools") + 1];
+	const tools = toolsArg.split(",");
+
+	assert.ok(!tools.includes("mcp"));
+	assert.ok(tools.includes("codemode"));
+	assert.ok(tools.includes("tool_search"));
+	assert.deepEqual(tools, ["read", "codemode", "tool_search", "subagent_parent_message"]);
+});
+
+test("childArguments omits codemode and tool_search when scoped mcp__<server> has no matching tools (#1686)", () => {
+	const activeMcpTools = ["mcp__notion__search"];
+	const req = request({
+		agent: { ...explorer, tools: ["read", "mcp__context7"] },
+		mcpTools: activeMcpTools,
+	});
+	const args = childArguments(req);
+	const toolsArg = args[args.indexOf("--tools") + 1];
+	const tools = toolsArg.split(",");
+
+	assert.ok(!tools.includes("mcp__context7"), "server prefix token must be omitted");
+	assert.ok(!tools.includes("codemode"), "codemode must be omitted when no scoped tools match");
+	assert.ok(!tools.includes("tool_search"), "tool_search must be omitted when no scoped tools match");
+	assert.ok(!tools.includes("mcp__notion__search"), "unscoped servers must not be included");
+	assert.deepEqual(tools, ["read", "subagent_parent_message"]);
+});
+
 // #1690: a forwarded launcher takeover keeps --no-extensions ahead of every
 // --extension and leaves the rest of the launch unchanged.
 test("childArguments forwards a takeover set with --no-extensions first", async () => {