diff --git a/packages/opencode/src/app/app.ts b/packages/opencode/src/app/app.ts
index 2d0bcb414..9d7920870 100644
--- a/packages/opencode/src/app/app.ts
+++ b/packages/opencode/src/app/app.ts
@@ -37,7 +37,7 @@ export namespace App {
       cwd: input.cwd,
       version: input.version,
     })
-    const git = await Filesystem.findUp(".git", input.cwd).then((x) =>
+    const git = await Filesystem.findUp(".git", input.cwd).then(([x]) =>
       x ? path.dirname(x) : undefined,
     )
     log.info("git", { git })
diff --git a/packages/opencode/src/config/config.ts b/packages/opencode/src/config/config.ts
index 33d565eec..9efa837e3 100644
--- a/packages/opencode/src/config/config.ts
+++ b/packages/opencode/src/config/config.ts
@@ -9,7 +9,7 @@ export namespace Config {
   export const state = App.state("config", async (app) => {
     let result: Info = {}
     for (const file of ["opencode.jsonc", "opencode.json"]) {
-      const resolved = await Filesystem.findUp(
+      const [resolved] = await Filesystem.findUp(
         file,
         app.path.cwd,
         app.path.root,
diff --git a/packages/opencode/src/session/context.ts b/packages/opencode/src/session/context.ts
index 2bd1acd5d..345eb9ea7 100644
--- a/packages/opencode/src/session/context.ts
+++ b/packages/opencode/src/session/context.ts
@@ -1,5 +1,5 @@
 import { App } from "../app/app"
-import path from "path"
+import { Filesystem } from "../util/filesystem"
 
 export namespace SessionContext {
   const FILES = [
@@ -9,20 +9,10 @@ export namespace SessionContext {
   ]
   export async function find() {
     const { cwd, root } = App.info().path
-    let current = cwd
     const found = []
-    while (true) {
-      for (const item of FILES) {
-        const file = Bun.file(path.join(current, item))
-        if (await file.exists()) {
-          found.push(file.text())
-        }
-      }
-
-      if (current === root) break
-      const parent = path.dirname(current)
-      if (parent === current) break
-      current = parent
+    for (const item of FILES) {
+      const matches = await Filesystem.findUp(item, cwd, root)
+      found.push(...matches.map((x) => Bun.file(x).text()))
     }
     return Promise.all(found).then((parts) => parts.join("\n\n"))
   }
diff --git a/packages/opencode/src/session/index.ts b/packages/opencode/src/session/index.ts
index 46260bc11..4754e986d 100644
--- a/packages/opencode/src/session/index.ts
+++ b/packages/opencode/src/session/index.ts
@@ -683,6 +683,7 @@ export namespace Session {
     modelID: string
     providerID: string
   }) {
+    const app = App.info()
     await Session.chat({
       sessionID: input.sessionID,
       providerID: input.providerID,
@@ -690,7 +691,7 @@ export namespace Session {
       parts: [
         {
           type: "text",
-          text: PROMPT_INITIALIZE,
+          text: PROMPT_INITIALIZE.replace("${path}", app.path.root),
         },
       ],
     })
diff --git a/packages/opencode/src/session/prompt/initialize.txt b/packages/opencode/src/session/prompt/initialize.txt
index 27886b404..4e45b4c78 100644
--- a/packages/opencode/src/session/prompt/initialize.txt
+++ b/packages/opencode/src/session/prompt/initialize.txt
@@ -3,5 +3,6 @@ Please analyze this codebase and create an AGENTS.md file containing:
 2. Code style guidelines including imports, formatting, types, naming conventions, error handling, etc.
 
 The file you create will be given to agentic coding agents (such as yourself) that operate in this repository. Make it about 20 lines long.
-If there's already an AGENTS.md, improve it.
 If there are Cursor rules (in .cursor/rules/ or .cursorrules) or Copilot rules (in .github/copilot-instructions.md), make sure to include them.
+
+If there's already an AGENTS.md, improve it if it's located in ${path}
diff --git a/packages/opencode/src/util/filesystem.ts b/packages/opencode/src/util/filesystem.ts
index ac85ca35e..bddc4025b 100644
--- a/packages/opencode/src/util/filesystem.ts
+++ b/packages/opencode/src/util/filesystem.ts
@@ -3,16 +3,16 @@ import { dirname, join } from "path"
 
 export namespace Filesystem {
   export async function findUp(target: string, start: string, stop?: string) {
-    let currentDir = start
+    let current = start
+    const result = []
     while (true) {
-      const targetPath = join(currentDir, target)
-      if (await exists(targetPath)) return targetPath
-      if (stop === currentDir) return
-      const parentDir = dirname(currentDir)
-      if (parentDir === currentDir) {
-        return
-      }
-      currentDir = parentDir
+      const search = join(current, target)
+      if (await exists(search)) result.push(search)
+      if (stop === current) break
+      const parent = dirname(current)
+      if (parent === current) break
+      current = parent
     }
+    return result
   }
 }