diff --git a/src/index.ts b/src/index.ts
index 363a50d..f22757e 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -290,6 +290,26 @@ export function toMultimodalContent(
   ];
 }
 
+/**
+ * Model parameters for the generation's header chips, from what pi resolves
+ * for every request: the model's configured `maxTokens` goes out as the max
+ * output tokens (clamped to the remaining context), and for reasoning models
+ * the thinking level, which each provider maps to its own effort or budget
+ * field. Sampling parameters such as temperature are only sent when a caller
+ * sets them explicitly, which the coding agent does not.
+ */
+export function extractModelParameters(
+  model: { reasoning?: boolean; maxTokens?: number } | undefined,
+  thinkingLevel?: string,
+): Record<string, string | number> | undefined {
+  if (!model) return undefined;
+  const out: Record<string, string | number> = {};
+  if (typeof model.maxTokens === "number" && model.maxTokens > 0) out.max_tokens = model.maxTokens;
+  // `off` means thinking is disabled — no chip.
+  if (model.reasoning && thinkingLevel && thinkingLevel !== "off") out.thinking_level = thinkingLevel;
+  return Object.keys(out).length ? out : undefined;
+}
+
 export interface PiUsage {
   input: number;
   output: number;
@@ -676,6 +696,7 @@ export default function (pi: ExtensionAPI) {
       {
         input: generationInput,
         model: ctx.model?.id,
+        modelParameters: extractModelParameters(ctx.model, ctx.thinkingLevel),
         metadata: {
           assistant_index: index - 1,
           ...(ctx.model ? { provider: ctx.model.provider } : {}),
diff --git a/test/model-parameters.test.ts b/test/model-parameters.test.ts
new file mode 100644
index 0000000..cb7786e
--- /dev/null
+++ b/test/model-parameters.test.ts
@@ -0,0 +1,136 @@
+/**
+ * Model parameters on generations: the unit half pins the mapping from pi's
+ * model/thinking level to the chip record, the integration half checks the
+ * exported `langfuse.observation.model.parameters` attribute for a plain and
+ * a reasoning model.
+ */
+import assert from "node:assert/strict";
+import { readFileSync, writeFileSync } from "node:fs";
+import { join } from "node:path";
+import { after, before, describe, it } from "node:test";
+import { extractModelParameters } from "../src/index.ts";
+import {
+  type Capture,
+  type CapturedSpan,
+  type Sandbox,
+  createSandbox,
+  runPi,
+  startCaptureServer,
+  startMockProvider,
+  waitForRequests,
+} from "./helpers.ts";
+
+describe("extractModelParameters", () => {
+  it("returns undefined without a model", () => {
+    assert.equal(extractModelParameters(undefined, "high"), undefined);
+  });
+
+  it("reports the configured max tokens", () => {
+    assert.deepEqual(extractModelParameters({ maxTokens: 8192, reasoning: false }), { max_tokens: 8192 });
+  });
+
+  it("adds the thinking level only for reasoning models", () => {
+    assert.deepEqual(extractModelParameters({ maxTokens: 8192, reasoning: true }, "high"), {
+      max_tokens: 8192,
+      thinking_level: "high",
+    });
+    // pi clamps the level to "off" for non-reasoning models before sending;
+    // a stale level on the context must not produce a misleading chip.
+    assert.deepEqual(extractModelParameters({ maxTokens: 8192, reasoning: false }, "high"), { max_tokens: 8192 });
+  });
+
+  it("treats `off` and a missing level as no thinking", () => {
+    assert.deepEqual(extractModelParameters({ maxTokens: 4096, reasoning: true }, "off"), { max_tokens: 4096 });
+    assert.deepEqual(extractModelParameters({ maxTokens: 4096, reasoning: true }), { max_tokens: 4096 });
+  });
+
+  it("returns undefined when nothing is worth a chip", () => {
+    // pi's Agent starts with maxTokens: 0 before a model is configured.
+    assert.equal(extractModelParameters({ maxTokens: 0, reasoning: false }), undefined);
+    assert.equal(extractModelParameters({}), undefined);
+    assert.equal(extractModelParameters({ reasoning: true }, "off"), undefined);
+  });
+
+  it("keeps the thinking level when max tokens is unknown", () => {
+    assert.deepEqual(extractModelParameters({ reasoning: true }, "medium"), { thinking_level: "medium" });
+  });
+});
+
+function langfuseEnv(capture: Capture): Record<string, string> {
+  return {
+    LANGFUSE_PUBLIC_KEY: "pk-lf-test",
+    LANGFUSE_SECRET_KEY: "sk-lf-test",
+    LANGFUSE_BASE_URL: `http://127.0.0.1:${capture.port}`,
+  };
+}
+
+/** Parsed model parameters of every exported generation, in call order. */
+function generationParameters(spans: CapturedSpan[]): Array<Record<string, unknown> | undefined> {
+  return spans
+    .filter((s) => s.name === "LLM Call")
+    .sort((a, b) => (a.startNs < b.startNs ? -1 : 1))
+    .map((s) => {
+      const raw = s.attrs["langfuse.observation.model.parameters"];
+      return raw === undefined ? undefined : (JSON.parse(String(raw)) as Record<string, unknown>);
+    });
+}
+
+/**
+ * Turn the sandbox's mock model into a reasoning model and pick a default
+ * thinking level. pi clamps the level to what the model supports, so the
+ * model flag and the setting are both needed for the level to survive.
+ */
+function enableReasoning(sandbox: Sandbox, level: string) {
+  const modelsPath = join(sandbox.agentDir, "models.json");
+  const models = JSON.parse(readFileSync(modelsPath, "utf8"));
+  models.providers.mock.models[0].reasoning = true;
+  writeFileSync(modelsPath, JSON.stringify(models));
+  writeFileSync(join(sandbox.agentDir, "settings.json"), JSON.stringify({ defaultThinkingLevel: level }));
+}
+
+describe("integration: model parameters", () => {
+  let mock: { port: number; close: () => void };
+
+  before(async () => {
+    mock = await startMockProvider();
+  });
+  after(() => mock.close());
+
+  it("records max tokens on every generation of a plain model", async () => {
+    const capture = await startCaptureServer();
+    try {
+      const sandbox = createSandbox(mock.port);
+      const result = await runPi(sandbox, "Explore this project and summarize it", { env: langfuseEnv(capture) });
+      assert.equal(result.status, 0, `pi failed: ${result.stderr}`);
+      await waitForRequests(capture, 1);
+
+      const params = generationParameters(capture.spans());
+      assert.equal(params.length, 3, "the mock script runs three generations");
+      for (const p of params) {
+        // The sandbox model declares maxTokens: 8192 and reasoning: false.
+        assert.deepEqual(p, { max_tokens: 8192 });
+      }
+    } finally {
+      capture.close();
+    }
+  });
+
+  it("adds the thinking level for a reasoning model", async () => {
+    const capture = await startCaptureServer();
+    try {
+      const sandbox = createSandbox(mock.port);
+      enableReasoning(sandbox, "high");
+      const result = await runPi(sandbox, "Explore this project and summarize it", { env: langfuseEnv(capture) });
+      assert.equal(result.status, 0, `pi failed: ${result.stderr}`);
+      await waitForRequests(capture, 1);
+
+      const params = generationParameters(capture.spans());
+      assert.equal(params.length, 3);
+      for (const p of params) {
+        assert.deepEqual(p, { max_tokens: 8192, thinking_level: "high" });
+      }
+    } finally {
+      capture.close();
+    }
+  });
+});