diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index 00fc9894..28939a91 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -14,6 +14,7 @@
 
 - Fixed `pi update` not updating npm/git packages when called without arguments ([#1151](https://github.com/badlogic/pi-mono/issues/1151))
 - Fixed `models.json` validation requiring fields documented as optional. Model definitions now only require `id`; all other fields (`name`, `reasoning`, `input`, `cost`, `contextWindow`, `maxTokens`) have sensible defaults. ([#1146](https://github.com/badlogic/pi-mono/issues/1146))
+- Fixed models resolving relative paths in skill files from cwd instead of skill directory by adding explicit guidance to skills preamble ([#1136](https://github.com/badlogic/pi-mono/issues/1136))
 
 ## [0.50.9] - 2026-02-01
 
diff --git a/packages/coding-agent/src/core/skills.ts b/packages/coding-agent/src/core/skills.ts
index f0dc8d45..1e9747a0 100644
--- a/packages/coding-agent/src/core/skills.ts
+++ b/packages/coding-agent/src/core/skills.ts
@@ -263,6 +263,7 @@ export function formatSkillsForPrompt(skills: Skill[]): string {
 	const lines = [
 		"\n\nThe following skills provide specialized instructions for specific tasks.",
 		"Use the read tool to load a skill's file when the task matches its description.",
+		"Relative paths inside skill files are resolved from the skill directory (parent of the location path).",
 		"",
 		"<available_skills>",
 	];