diff --git a/mini_coding_agent.py b/mini_coding_agent.py
index 1bf2403..b815b1d 100644
--- a/mini_coding_agent.py
+++ b/mini_coding_agent.py
@@ -238,6 +238,7 @@ def __init__(
     ):
         self.model_client = model_client
         self.workspace = workspace
+        self.workspace_dirty = False
         self.root = Path(workspace.repo_root)
         self.session_store = session_store
         self.approval_policy = approval_policy
@@ -370,7 +371,6 @@ def build_prefix(self):
             "Rules:\n" + rules,
             "Tools:\n" + tool_text,
             "Valid response examples:\n" + examples,
-            self.workspace.text(),
         ])
 
     def memory_text(self):
@@ -420,8 +420,12 @@ def history_text(self):
     #### 2) Prompt Shape And Cache Reuse (Continued) #######
     ########################################################
     def prompt(self, user_message):
+        if self.workspace_dirty:
+            self.workspace = WorkspaceContext.build(self.workspace.cwd)
+            self.workspace_dirty = False
         return "\n\n".join([
             self.prefix,
+            self.workspace.text(),
             self.memory_text(),
             "Transcript:\n" + self.history_text(),
             "Current user request:\n" + user_message,
@@ -513,6 +517,10 @@ def run_tool(self, name, args):
             return clip(tool["run"](args))
         except Exception as exc:
             return f"error: tool {name} failed: {exc}"
+        finally:
+            # A tool can change files before failing (for example, a shell timeout).
+            if name in {"write_file", "patch_file", "run_shell"}:
+                self.workspace_dirty = True
 
     def repeated_tool_call(self, name, args):
         tool_events = [item for item in self.session["history"] if item["role"] == "tool"]
diff --git a/tests/test_mini_coding_agent.py b/tests/test_mini_coding_agent.py
index 5c62693..b938d1b 100644
--- a/tests/test_mini_coding_agent.py
+++ b/tests/test_mini_coding_agent.py
@@ -1,4 +1,5 @@
 import json
+import subprocess
 import pytest
 from unittest.mock import patch
 
@@ -30,6 +31,94 @@ def build_agent(tmp_path, outputs, **kwargs):
     )
 
 
+@pytest.fixture
+def git_workspace(tmp_path):
+    (tmp_path / "README.md").write_text("demo\n", encoding="utf-8")
+    (tmp_path / ".gitignore").write_text(".mini-coding-agent/\n", encoding="utf-8")
+    for args in (
+        ["init"],
+        ["add", "."],
+        ["-c", "user.name=Test", "-c", "user.email=test@example.invalid",
+         "-c", "commit.gpgsign=false", "commit", "-m", "initial"],
+    ):
+        subprocess.run(["git", *args], cwd=tmp_path, check=True, capture_output=True)
+    return tmp_path
+
+
+def workspace_in_prompt(prompt):
+    return prompt.split("Workspace:\n", 1)[1].split("\n\nMemory:", 1)[0]
+
+
+@pytest.mark.parametrize("name,args", [
+    ("write_file", {"path": "README.md", "content": "updated\n"}),
+    ("patch_file", {"path": "README.md", "old_text": "demo", "new_text": "updated"}),
+    ("run_shell", {"command": "echo updated>README.md"}),
+])
+def test_workspace_refresh_after_mutating_tool(git_workspace, name, args):
+    agent = build_agent(git_workspace, [
+        "<tool>" + json.dumps({"name": name, "args": args}) + "</tool>",
+        "<final>Done.</final>",
+    ])
+    prefix = agent.prefix
+    with patch.object(agent.model_client, "complete", wraps=agent.model_client.complete) as complete:
+        assert agent.ask("Update the documentation") == "Done."
+
+    before, after = [workspace_in_prompt(call.args[0]) for call in complete.call_args_list]
+    assert "- status:\nclean\n" in before
+    assert "- README.md\ndemo\n" in before
+    assert "M README.md" in after
+    assert "- README.md\nupdated" in after
+    assert "- README.md\ndemo\n" not in after
+    assert agent.prefix == prefix
+
+
+def test_workspace_refresh_after_shell_changes_git_state(git_workspace):
+    command = (
+        'git checkout -b refreshed-branch && git -c user.name=Test '
+        '-c user.email=test@example.invalid -c commit.gpgsign=false '
+        'commit --allow-empty -m refreshed-commit'
+    )
+    agent = build_agent(git_workspace, [
+        "<tool>" + json.dumps({"name": "run_shell", "args": {"command": command}}) + "</tool>",
+        "<final>Done.</final>",
+    ])
+    with patch.object(agent.model_client, "complete", wraps=agent.model_client.complete) as complete:
+        agent.ask("Update the git state")
+    after = workspace_in_prompt(complete.call_args_list[-1].args[0])
+    assert "- branch: refreshed-branch\n" in after
+    assert "refreshed-commit" in after
+
+
+def test_workspace_refresh_after_partial_tool_failure(tmp_path):
+    agent = build_agent(tmp_path, [])
+
+    def partial_write(args):
+        (tmp_path / "README.md").write_text("partial update\n", encoding="utf-8")
+        raise RuntimeError("synthetic failure after mutation")
+
+    agent.tools["write_file"]["run"] = partial_write
+    result = agent.run_tool("write_file", {"path": "README.md", "content": "unused"})
+    assert "synthetic failure after mutation" in result
+    assert "- README.md\npartial update\n" in workspace_in_prompt(agent.prompt("Continue"))
+
+
+@pytest.mark.parametrize("name,args,policy", [
+    ("read_file", {"path": "README.md"}, "auto"),
+    ("write_file", {"path": "README.md", "content": "denied"}, "never"),
+    ("write_file", {"path": "README.md"}, "auto"),
+])
+def test_workspace_not_refreshed_without_executed_mutation(tmp_path, name, args, policy):
+    agent = build_agent(tmp_path, [], approval_policy=policy)
+    before = workspace_in_prompt(agent.prompt("Inspect"))
+    with patch.object(WorkspaceContext, "build", wraps=WorkspaceContext.build) as build:
+        result = agent.run_tool(name, args)
+        assert workspace_in_prompt(agent.prompt("Continue")) == before
+    build.assert_not_called()
+    if policy == "never":
+        assert "approval denied" in result
+    assert (tmp_path / "README.md").read_text(encoding="utf-8") == "demo\n"
+
+
 def test_agent_runs_tool_then_final(tmp_path):
     (tmp_path / "hello.txt").write_text("alpha\nbeta\n", encoding="utf-8")
     agent = build_agent(