diff --git a/README.md b/README.md
index d8fabdc..82bf5c7 100644
--- a/README.md
+++ b/README.md
@@ -112,7 +112,7 @@ Options:
   -C string
     	Change to directory before doing anything. (default ".")
   -d value
-    	Remote directory containing rules and tasks. Can be specified multiple times. Supports various protocols via go-getter (http://, https://, git::, s3::, etc.).
+    	Remote directory containing rules, skills, and tasks. Can be specified multiple times. Supports various protocols via go-getter (http://, https://, git::, s3::, etc.).
   -m string
     	Go Getter URL to a manifest file containing search paths (one per line). Every line is included as-is.
   -p value
@@ -137,10 +137,11 @@ This command will:
 1. Find a task file named `fix-bug.md` in the task search paths.
 2. Find all rule files in the search paths.
 3. Filter the rules based on selectors.
-4. Execute any associated bootstrap scripts.
-5. Substitute `${jira_issue_key}` with `PROJ-1234` in the task prompt.
-6. Print the combined context (rules + task) to `stdout`.
-7. Pipe the output to another program (in this case, `llm`).
+4. Discover available skills and load their metadata.
+5. Execute any associated bootstrap scripts.
+6. Substitute `${jira_issue_key}` with `PROJ-1234` in the task prompt.
+7. Print the combined context (rules + skills + task) to `stdout`.
+8. Pipe the output to another program (in this case, `llm`).
 
 **Using remote directories:**
 ```bash
@@ -152,8 +153,8 @@ coding-context \
 
 This command will:
 1. Download remote directories using go-getter
-2. Search for rules and tasks in the downloaded directories
-3. Combine them with local rules and tasks
+2. Search for rules, skills, and tasks in the downloaded directories
+3. Combine them with local rules, skills, and tasks
 4. Apply the same processing as with local files
 
 The `-d` flag supports various protocols via go-getter:
@@ -208,12 +209,13 @@ The tool assembles the context in the following order:
 1.  **Rule Files**: It searches for rule files (`.md` or `.mdc`) in directories specified via `-d` flags and automatically-added working directory and home directory.
 2.  **Rule Bootstrap Scripts**: For each rule file found (e.g., `my-rule.md`), it looks for an executable script named `my-rule-bootstrap`. If found, it runs the script before processing the rule file. These scripts are meant for bootstrapping the environment (e.g., installing tools) and their output is sent to `stderr`, not into the main context.
 3.  **Filtering**: If `-s` (include) flag is used, it parses the YAML frontmatter of each rule file to decide whether to include it. Note that selectors can only match top-level YAML fields (e.g., `language: go`), not nested fields.
-4.  **Task Prompt**: It searches for a task file matching the filename (without `.md` extension). Tasks are matched by filename, not by `task_name` in frontmatter. If selectors are provided with `-s`, they are used to filter between multiple task files with the same filename.
-5.  **Task Bootstrap Script**: For the task file found (e.g., `fix-bug.md`), it looks for an executable script named `fix-bug-bootstrap`. If found, it runs the script before processing the task file. This allows task-specific environment setup or data preparation.
-6.  **User Prompt Appending**: If a user-prompt argument is provided, it is appended to the task content after a delimiter (`---`).
-7.  **Parameter Expansion**: It substitutes variables in the task prompt and user-prompt using the `-p` flags.
-8.  **Output**: It prints the content of all included rule files, followed by the expanded task prompt, to standard output.
-9.  **Token Count**: A running total of estimated tokens is printed to standard error.
+4.  **Skill Discovery**: It searches for skill directories (`.agents/skills/*/SKILL.md`) and loads only their metadata (name and description) for progressive disclosure. Skills can be filtered by selectors just like rules.
+5.  **Task Prompt**: It searches for a task file matching the filename (without `.md` extension). Tasks are matched by filename, not by `task_name` in frontmatter. If selectors are provided with `-s`, they are used to filter between multiple task files with the same filename.
+6.  **Task Bootstrap Script**: For the task file found (e.g., `fix-bug.md`), it looks for an executable script named `fix-bug-bootstrap`. If found, it runs the script before processing the task file. This allows task-specific environment setup or data preparation.
+7.  **User Prompt Appending**: If a user-prompt argument is provided, it is appended to the task content after a delimiter (`---`).
+8.  **Parameter Expansion**: It substitutes variables in the task prompt and user-prompt using the `-p` flags.
+9.  **Output**: It prints the content of all included rule files, followed by available skills metadata (as XML for progressive disclosure), followed by the expanded task prompt, to standard output.
+10. **Token Count**: A running total of estimated tokens is printed to standard error.
 
 ### File Search Paths
 
@@ -240,7 +242,7 @@ The tool searches for a variety of files and directories, including:
 
 ### Remote File System Support
 
-The tool supports loading rules and tasks from remote locations via HTTP/HTTPS URLs. This enables:
+The tool supports loading rules, skills, and tasks from remote locations via HTTP/HTTPS URLs. This enables:
 
 - **Shared team guidelines**: Host coding standards on a central server
 - **Organization-wide rules**: Distribute common rules across multiple projects
@@ -277,7 +279,7 @@ coding-context \
 - Remote directories are downloaded to a temporary location
 - Bootstrap scripts work in downloaded directories
 - Downloaded directories are cleaned up after execution
-- Supports all standard directory structures (`.agents/rules`, `.agents/tasks`, etc.)
+- Supports all standard directory structures (`.agents/rules`, `.agents/skills`, `.agents/tasks`, etc.)
 
 **Example: Using a Git repository:**