diff --git a/packages/coding-agent/examples/extensions/claude-rules.ts b/packages/coding-agent/examples/extensions/claude-rules.ts
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+/**
+ * Claude Rules Extension
+ *
+ * Scans the project's .claude/rules/ folder for rule files and lists them
+ * in the system prompt. The agent can then use the read tool to load
+ * specific rules when needed.
+ *
+ * Best practices for .claude/rules/:
+ * - Keep rules focused: Each file should cover one topic (e.g., testing.md, api-design.md)
+ * - Use descriptive filenames: The filename should indicate what the rules cover
+ * - Use conditional rules sparingly: Only add paths frontmatter when rules truly apply to specific file types
+ * - Organize with subdirectories: Group related rules (e.g., frontend/, backend/)
+ *
+ * Usage:
+ * 1. Copy this file to ~/.pi/agent/extensions/ or your project's .pi/extensions/
+ * 2. Create .claude/rules/ folder in your project root
+ * 3. Add .md files with your rules
+ */
+
+import type { ExtensionAPI } from "@mariozechner/pi-coding-agent";
+import * as fs from "node:fs";
+import * as path from "node:path";
+
+/**
+ * Recursively find all .md files in a directory
+ */
+function findMarkdownFiles(dir: string, basePath: string = ""): string[] {
+	const results: string[] = [];
+
+	if (!fs.existsSync(dir)) {
+		return results;
+	}
+
+	const entries = fs.readdirSync(dir, { withFileTypes: true });
+
+	for (const entry of entries) {
+		const relativePath = basePath ? `${basePath}/${entry.name}` : entry.name;
+
+		if (entry.isDirectory()) {
+			results.push(...findMarkdownFiles(path.join(dir, entry.name), relativePath));
+		} else if (entry.isFile() && entry.name.endsWith(".md")) {
+			results.push(relativePath);
+		}
+	}
+
+	return results;
+}
+
+export default function claudeRulesExtension(pi: ExtensionAPI) {
+	let ruleFiles: string[] = [];
+	let rulesDir: string = "";
+
+	// Scan for rules on session start
+	pi.on("session_start", async (_event, ctx) => {
+		rulesDir = path.join(ctx.cwd, ".claude", "rules");
+		ruleFiles = findMarkdownFiles(rulesDir);
+
+		if (ruleFiles.length > 0) {
+			ctx.ui.notify(`Found ${ruleFiles.length} rule(s) in .claude/rules/`, "info");
+		}
+	});
+
+	// Append available rules to system prompt
+	pi.on("before_agent_start", async () => {
+		if (ruleFiles.length === 0) {
+			return;
+		}
+
+		const rulesList = ruleFiles.map((f) => `- .claude/rules/${f}`).join("\n");
+
+		return {
+			systemPromptAppend: `
+## Project Rules
+
+The following project rules are available in .claude/rules/:
+
+${rulesList}
+
+When working on tasks related to these rules, use the read tool to load the relevant rule files for guidance.
+`,
+		};
+	});
+}