diff --git a/container/agent-runner/src/index.ts b/container/agent-runner/src/index.ts
index ec181ed..25554f9 100644
--- a/container/agent-runner/src/index.ts
+++ b/container/agent-runner/src/index.ts
@@ -409,8 +409,7 @@ async function runQuery(
         'TeamCreate', 'TeamDelete', 'SendMessage',
         'TodoWrite', 'ToolSearch', 'Skill',
         'NotebookEdit',
-        'mcp__nanoclaw__*',
-        'mcp__ollama__*'
+        'mcp__nanoclaw__*'
       ],
       env: sdkEnv,
       permissionMode: 'bypassPermissions',
@@ -426,10 +425,6 @@ async function runQuery(
             NANOCLAW_IS_MAIN: containerInput.isMain ? '1' : '0',
           },
         },
-        ollama: {
-          command: 'node',
-          args: [path.join(path.dirname(mcpServerPath), 'ollama-mcp-stdio.js')],
-        },
       },
       hooks: {
         PreCompact: [{ hooks: [createPreCompactHook(containerInput.assistantName)] }],
diff --git a/container/agent-runner/src/ollama-mcp-stdio.ts b/container/agent-runner/src/ollama-mcp-stdio.ts
deleted file mode 100644
index 379398a..0000000
--- a/container/agent-runner/src/ollama-mcp-stdio.ts
+++ /dev/null
@@ -1,281 +0,0 @@
-/**
- * Ollama MCP Server for NanoClaw
- * Exposes local Ollama models as tools for the container agent.
- * Uses host.docker.internal to reach the host's Ollama instance from Docker.
- */
-
-import { McpServer } from '@modelcontextprotocol/sdk/server/mcp.js';
-import { StdioServerTransport } from '@modelcontextprotocol/sdk/server/stdio.js';
-import { z } from 'zod';
-
-import fs from 'fs';
-import path from 'path';
-
-const OLLAMA_HOST = process.env.OLLAMA_HOST || 'http://host.docker.internal:11434';
-const OLLAMA_STATUS_FILE = '/workspace/ipc/ollama_status.json';
-
-function log(msg: string): void {
-  console.error(`[OLLAMA] ${msg}`);
-}
-
-function writeStatus(status: string, detail?: string): void {
-  try {
-    const data = { status, detail, timestamp: new Date().toISOString() };
-    const tmpPath = `${OLLAMA_STATUS_FILE}.tmp`;
-    fs.mkdirSync(path.dirname(OLLAMA_STATUS_FILE), { recursive: true });
-    fs.writeFileSync(tmpPath, JSON.stringify(data));
-    fs.renameSync(tmpPath, OLLAMA_STATUS_FILE);
-  } catch { /* best-effort */ }
-}
-
-async function ollamaFetch(path: string, options?: RequestInit): Promise<Response> {
-  const url = `${OLLAMA_HOST}${path}`;
-  try {
-    return await fetch(url, options);
-  } catch (err) {
-    // Fallback to localhost if host.docker.internal fails
-    if (OLLAMA_HOST.includes('host.docker.internal')) {
-      const fallbackUrl = url.replace('host.docker.internal', 'localhost');
-      return await fetch(fallbackUrl, options);
-    }
-    throw err;
-  }
-}
-
-const server = new McpServer({
-  name: 'ollama',
-  version: '1.0.0',
-});
-
-server.tool(
-  'ollama_list_models',
-  'List all locally installed Ollama models. Use this to see which models are available before calling ollama_generate.',
-  {},
-  async () => {
-    log('Listing models...');
-    writeStatus('listing', 'Listing available models');
-    try {
-      const res = await ollamaFetch('/api/tags');
-      if (!res.ok) {
-        return {
-          content: [{ type: 'text' as const, text: `Ollama API error: ${res.status} ${res.statusText}` }],
-          isError: true,
-        };
-      }
-
-      const data = await res.json() as { models?: Array<{ name: string; size: number; modified_at: string }> };
-      const models = data.models || [];
-
-      if (models.length === 0) {
-        return { content: [{ type: 'text' as const, text: 'No models installed. Run `ollama pull <model>` on the host to install one.' }] };
-      }
-
-      const list = models
-        .map(m => `- ${m.name} (${(m.size / 1e9).toFixed(1)}GB)`)
-        .join('\n');
-
-      log(`Found ${models.length} models`);
-      return { content: [{ type: 'text' as const, text: `Installed models:\n${list}` }] };
-    } catch (err) {
-      return {
-        content: [{ type: 'text' as const, text: `Failed to connect to Ollama at ${OLLAMA_HOST}: ${err instanceof Error ? err.message : String(err)}` }],
-        isError: true,
-      };
-    }
-  },
-);
-
-server.tool(
-  'ollama_generate',
-  'Send a prompt to a local Ollama model and get a response. Good for cheaper/faster tasks like summarization, translation, or general queries. Use ollama_list_models first to see available models.',
-  {
-    model: z.string().describe('The model name (e.g., "llama3.2", "mistral", "gemma2")'),
-    prompt: z.string().describe('The prompt to send to the model'),
-    system: z.string().optional().describe('Optional system prompt to set model behavior'),
-  },
-  async (args) => {
-    log(`>>> Generating with ${args.model} (${args.prompt.length} chars)...`);
-    writeStatus('generating', `Generating with ${args.model}`);
-    try {
-      const body: Record<string, unknown> = {
-        model: args.model,
-        prompt: args.prompt,
-        stream: false,
-      };
-      if (args.system) {
-        body.system = args.system;
-      }
-
-      const res = await ollamaFetch('/api/generate', {
-        method: 'POST',
-        headers: { 'Content-Type': 'application/json' },
-        body: JSON.stringify(body),
-      });
-
-      if (!res.ok) {
-        const errorText = await res.text();
-        return {
-          content: [{ type: 'text' as const, text: `Ollama error (${res.status}): ${errorText}` }],
-          isError: true,
-        };
-      }
-
-      const data = await res.json() as { response: string; total_duration?: number; eval_count?: number };
-
-      let meta = '';
-      if (data.total_duration) {
-        const secs = (data.total_duration / 1e9).toFixed(1);
-        meta = `\n\n[${args.model} | ${secs}s${data.eval_count ? ` | ${data.eval_count} tokens` : ''}]`;
-        log(`<<< Done: ${args.model} | ${secs}s | ${data.eval_count || '?'} tokens | ${data.response.length} chars`);
-        writeStatus('done', `${args.model} | ${secs}s | ${data.eval_count || '?'} tokens`);
-      } else {
-        log(`<<< Done: ${args.model} | ${data.response.length} chars`);
-        writeStatus('done', `${args.model} | ${data.response.length} chars`);
-      }
-
-      return { content: [{ type: 'text' as const, text: data.response + meta }] };
-    } catch (err) {
-      return {
-        content: [{ type: 'text' as const, text: `Failed to call Ollama: ${err instanceof Error ? err.message : String(err)}` }],
-        isError: true,
-      };
-    }
-  },
-);
-
-server.tool(
-  'ollama_pull_model',
-  'Pull (download) a model from the Ollama registry by name. Returns the final status once the pull is complete. Use model names like "llama3.2", "mistral", "gemma2:9b".',
-  {
-    model: z.string().describe('Model name to pull, e.g. "llama3.2", "mistral", "gemma2:9b"'),
-  },
-  async (args) => {
-    log(`Pulling model: ${args.model}...`);
-    writeStatus('pulling', `Pulling ${args.model}`);
-    try {
-      const res = await ollamaFetch('/api/pull', {
-        method: 'POST',
-        headers: { 'Content-Type': 'application/json' },
-        body: JSON.stringify({ model: args.model, stream: false }),
-      });
-      if (!res.ok) {
-        const errorText = await res.text();
-        return {
-          content: [{ type: 'text' as const, text: `Ollama error (${res.status}): ${errorText}` }],
-          isError: true,
-        };
-      }
-      const data = await res.json() as { status: string };
-      log(`Pull complete: ${args.model} — ${data.status}`);
-      writeStatus('done', `Pulled ${args.model}`);
-      return { content: [{ type: 'text' as const, text: `Pull complete: ${args.model} — ${data.status}` }] };
-    } catch (err) {
-      return {
-        content: [{ type: 'text' as const, text: `Failed to pull model: ${err instanceof Error ? err.message : String(err)}` }],
-        isError: true,
-      };
-    }
-  },
-);
-
-server.tool(
-  'ollama_delete_model',
-  'Delete a locally installed Ollama model to free up disk space.',
-  {
-    model: z.string().describe('Model name to delete, e.g. "llama3.2", "mistral:latest"'),
-  },
-  async (args) => {
-    log(`Deleting model: ${args.model}...`);
-    writeStatus('deleting', `Deleting ${args.model}`);
-    try {
-      const res = await ollamaFetch('/api/delete', {
-        method: 'DELETE',
-        headers: { 'Content-Type': 'application/json' },
-        body: JSON.stringify({ model: args.model }),
-      });
-      if (!res.ok) {
-        const errorText = await res.text();
-        return {
-          content: [{ type: 'text' as const, text: `Ollama error (${res.status}): ${errorText}` }],
-          isError: true,
-        };
-      }
-      log(`Deleted: ${args.model}`);
-      writeStatus('done', `Deleted ${args.model}`);
-      return { content: [{ type: 'text' as const, text: `Deleted model: ${args.model}` }] };
-    } catch (err) {
-      return {
-        content: [{ type: 'text' as const, text: `Failed to delete model: ${err instanceof Error ? err.message : String(err)}` }],
-        isError: true,
-      };
-    }
-  },
-);
-
-server.tool(
-  'ollama_show_model',
-  'Show details for a locally installed Ollama model: modelfile, parameters, template, system prompt, and architecture info (context length, parameter count, etc.).',
-  {
-    model: z.string().describe('Model name to inspect, e.g. "llama3.2", "mistral:latest"'),
-  },
-  async (args) => {
-    log(`Showing model info: ${args.model}...`);
-    try {
-      const res = await ollamaFetch('/api/show', {
-        method: 'POST',
-        headers: { 'Content-Type': 'application/json' },
-        body: JSON.stringify({ model: args.model }),
-      });
-      if (!res.ok) {
-        const errorText = await res.text();
-        return {
-          content: [{ type: 'text' as const, text: `Ollama error (${res.status}): ${errorText}` }],
-          isError: true,
-        };
-      }
-      const data = await res.json();
-      return { content: [{ type: 'text' as const, text: JSON.stringify(data, null, 2) }] };
-    } catch (err) {
-      return {
-        content: [{ type: 'text' as const, text: `Failed to show model info: ${err instanceof Error ? err.message : String(err)}` }],
-        isError: true,
-      };
-    }
-  },
-);
-
-server.tool(
-  'ollama_list_running',
-  'List Ollama models currently loaded in memory with their memory usage, processor type (CPU/GPU), and time until they are unloaded.',
-  {},
-  async () => {
-    log('Listing running models...');
-    try {
-      const res = await ollamaFetch('/api/ps');
-      if (!res.ok) {
-        return {
-          content: [{ type: 'text' as const, text: `Ollama API error: ${res.status} ${res.statusText}` }],
-          isError: true,
-        };
-      }
-      const data = await res.json() as { models?: Array<{ name: string; size_vram: number; processor: string; expires_at: string }> };
-      const models = data.models || [];
-      if (models.length === 0) {
-        return { content: [{ type: 'text' as const, text: 'No models currently loaded in memory.' }] };
-      }
-      const list = models
-        .map(m => `- ${m.name} (${(m.size_vram / 1e9).toFixed(1)}GB ${m.processor}, unloads at ${m.expires_at})`)
-        .join('\n');
-      log(`${models.length} model(s) running`);
-      return { content: [{ type: 'text' as const, text: `Models loaded in memory:\n${list}` }] };
-    } catch (err) {
-      return {
-        content: [{ type: 'text' as const, text: `Failed to list running models: ${err instanceof Error ? err.message : String(err)}` }],
-        isError: true,
-      };
-    }
-  },
-);
-
-const transport = new StdioServerTransport();
-await server.connect(transport);
diff --git a/scripts/ollama-watch.sh b/scripts/ollama-watch.sh
deleted file mode 100755
index 1aa4a93..0000000
--- a/scripts/ollama-watch.sh
+++ /dev/null
@@ -1,41 +0,0 @@
-#!/bin/bash
-# Watch NanoClaw IPC for Ollama activity and show macOS notifications
-# Usage: ./scripts/ollama-watch.sh
-
-cd "$(dirname "$0")/.." || exit 1
-
-echo "Watching for Ollama activity..."
-echo "Press Ctrl+C to stop"
-echo ""
-
-LAST_TIMESTAMP=""
-
-while true; do
-  # Check all group IPC dirs for ollama_status.json
-  for status_file in data/ipc/*/ollama_status.json; do
-    [ -f "$status_file" ] || continue
-
-    TIMESTAMP=$(python3 -c "import json; print(json.load(open('$status_file'))['timestamp'])" 2>/dev/null)
-    [ -z "$TIMESTAMP" ] && continue
-    [ "$TIMESTAMP" = "$LAST_TIMESTAMP" ] && continue
-
-    LAST_TIMESTAMP="$TIMESTAMP"
-    STATUS=$(python3 -c "import json; d=json.load(open('$status_file')); print(d['status'])" 2>/dev/null)
-    DETAIL=$(python3 -c "import json; d=json.load(open('$status_file')); print(d.get('detail',''))" 2>/dev/null)
-
-    case "$STATUS" in
-      generating)
-        osascript -e "display notification \"$DETAIL\" with title \"NanoClaw → Ollama\" sound name \"Submarine\"" 2>/dev/null
-        echo "$(date +%H:%M:%S) 🔄 $DETAIL"
-        ;;
-      done)
-        osascript -e "display notification \"$DETAIL\" with title \"NanoClaw ← Ollama ✓\" sound name \"Glass\"" 2>/dev/null
-        echo "$(date +%H:%M:%S) ✅ $DETAIL"
-        ;;
-      listing)
-        echo "$(date +%H:%M:%S) 📋 Listing models..."
-        ;;
-    esac
-  done
-  sleep 0.5
-done
diff --git a/src/container-runner.ts b/src/container-runner.ts
index 5f22180..f6f86b1 100644
--- a/src/container-runner.ts
+++ b/src/container-runner.ts
@@ -400,12 +400,7 @@ export async function runContainerAgent(
       const chunk = data.toString();
       const lines = chunk.trim().split('\n');
       for (const line of lines) {
-        if (!line) continue;
-        if (line.includes('[OLLAMA]')) {
-          logger.info({ container: group.folder }, line);
-        } else {
-          logger.debug({ container: group.folder }, line);
-        }
+        if (line) logger.debug({ container: group.folder }, line);
       }
       // Don't reset timeout on stderr — SDK writes debug logs continuously.
       // Timeout only resets on actual output (OUTPUT_MARKER in stdout).
diff --git a/src/index.ts b/src/index.ts
index 897d0eb..f6a662a 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -403,12 +403,20 @@ async function runAgent(
     }
 
     if (output.status === 'error') {
-      // Detect stale/corrupt session: container failed while resuming an existing session.
-      // Clear the session and retry once with a fresh session to avoid infinite retry loops.
-      if (sessionId) {
+      // Detect stale/corrupt session: the SDK throws ENOENT when the session
+      // transcript file (.jsonl) doesn't exist inside the container. This
+      // happens after container restarts since the filesystem is ephemeral.
+      // Only clear + retry for this specific signal — transient errors
+      // (network, API) should fall through to the normal backoff path.
+      const isStaleSession =
+        sessionId &&
+        output.error &&
+        /ENOENT.*\.jsonl|session.*not found/i.test(output.error);
+
+      if (isStaleSession) {
         logger.warn(
           { group: group.name, staleSessionId: sessionId, error: output.error },
-          'Container failed with existing session — clearing stale session and retrying with fresh session',
+          'Stale session detected (ENOENT on session transcript) — clearing and retrying with fresh session',
         );
         delete sessions[group.folder];
         deleteSession(group.folder);