diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index 31353915..cc493161 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## [Unreleased]
 
+### Fixed
+
+- SDK: passing `extensions: []` now disables extension discovery as documented ([#465](https://github.com/badlogic/pi-mono/pull/465) by [@aliou](https://github.com/aliou))
+
 ## [0.36.0] - 2026-01-05
 
 ### Added
diff --git a/packages/coding-agent/examples/sdk/12-full-control.ts b/packages/coding-agent/examples/sdk/12-full-control.ts
index a51c2d37..2d361b8e 100644
--- a/packages/coding-agent/examples/sdk/12-full-control.ts
+++ b/packages/coding-agent/examples/sdk/12-full-control.ts
@@ -6,10 +6,6 @@
  * IMPORTANT: When providing `tools` with a custom `cwd`, use the tool factory
  * functions (createReadTool, createBashTool, etc.) to ensure tools resolve
  * paths relative to your cwd.
- *
- * NOTE: Extensions (extensions, custom tools) are always loaded via discovery.
- * To use custom extensions, place them in the extensions directory or
- * pass paths via additionalExtensionPaths.
  */
 
 import { getModel } from "@mariozechner/pi-ai";
@@ -57,8 +53,8 @@ const { session } = await createAgentSession({
 Available: read, bash. Be concise.`,
 	// Use factory functions with the same cwd to ensure path resolution works correctly
 	tools: [createReadTool(cwd), createBashTool(cwd)],
-	// Extensions are loaded from disk - use additionalExtensionPaths to add custom ones
-	// additionalExtensionPaths: ["./my-extension.ts"],
+	// Pass empty array to disable extension discovery, or provide inline factories
+	extensions: [],
 	skills: [],
 	contextFiles: [],
 	promptTemplates: [],
diff --git a/packages/coding-agent/src/core/sdk.ts b/packages/coding-agent/src/core/sdk.ts
index e575a485..b89f6e85 100644
--- a/packages/coding-agent/src/core/sdk.ts
+++ b/packages/coding-agent/src/core/sdk.ts
@@ -444,6 +444,14 @@ export async function createAgentSession(options: CreateAgentSessionOptions = {}
 			errors: [],
 			setUIContext: () => {},
 		};
+	} else if (options.extensions !== undefined) {
+		// User explicitly provided extensions array (even if empty) - skip discovery
+		// Inline factories from options.extensions are loaded below
+		extensionsResult = {
+			extensions: [],
+			errors: [],
+			setUIContext: () => {},
+		};
 	} else {
 		// Discover extensions, merging with additional paths
 		const configuredPaths = [...settingsManager.getExtensionPaths(), ...(options.additionalExtensionPaths ?? [])];