diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index abd0eacf..3dfd78f9 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -8,6 +8,7 @@
 
 ### Fixed
 
+- Fixed `/reload` not picking up changes in global settings.json ([#1241](https://github.com/badlogic/pi-mono/issues/1241))
 - Fixed Unix bash detection to fall back to PATH lookup when `/bin/bash` is unavailable, including Termux setups ([#1230](https://github.com/badlogic/pi-mono/pull/1230) by [@VaclavSynacek](https://github.com/VaclavSynacek))
 
 ## [0.51.5] - 2026-02-04
diff --git a/packages/coding-agent/src/core/agent-session.ts b/packages/coding-agent/src/core/agent-session.ts
index 54dbb1a8..4eba14f1 100644
--- a/packages/coding-agent/src/core/agent-session.ts
+++ b/packages/coding-agent/src/core/agent-session.ts
@@ -1982,6 +1982,7 @@ export class AgentSession {
 	async reload(): Promise<void> {
 		const previousFlagValues = this._extensionRunner?.getFlagValues();
 		await this._extensionRunner?.emit({ type: "session_shutdown" });
+		this.settingsManager.reload();
 		resetApiProviders();
 		await this._resourceLoader.reload();
 		this._buildRuntime({
diff --git a/packages/coding-agent/src/core/settings-manager.ts b/packages/coding-agent/src/core/settings-manager.ts
index 6111da1d..f4ac02e4 100644
--- a/packages/coding-agent/src/core/settings-manager.ts
+++ b/packages/coding-agent/src/core/settings-manager.ts
@@ -240,6 +240,29 @@ export class SettingsManager {
 		return this.loadProjectSettings();
 	}
 
+	reload(): void {
+		let nextGlobalSettings: Settings | null = null;
+
+		if (this.persist && this.settingsPath) {
+			try {
+				nextGlobalSettings = SettingsManager.loadFromFile(this.settingsPath);
+				this.globalSettingsLoadError = null;
+			} catch (error) {
+				this.globalSettingsLoadError = error as Error;
+			}
+		}
+
+		if (nextGlobalSettings) {
+			this.globalSettings = nextGlobalSettings;
+		}
+
+		this.modifiedFields.clear();
+		this.modifiedNestedFields.clear();
+
+		const projectSettings = this.loadProjectSettings();
+		this.settings = deepMergeSettings(this.globalSettings, projectSettings);
+	}
+
 	/** Apply additional overrides on top of current settings */
 	applyOverrides(overrides: Partial<Settings>): void {
 		this.settings = deepMergeSettings(this.settings, overrides);
diff --git a/packages/coding-agent/src/modes/interactive/interactive-mode.ts b/packages/coding-agent/src/modes/interactive/interactive-mode.ts
index 4dcc11c4..e256f449 100644
--- a/packages/coding-agent/src/modes/interactive/interactive-mode.ts
+++ b/packages/coding-agent/src/modes/interactive/interactive-mode.ts
@@ -3710,6 +3710,22 @@ export class InteractiveMode {
 		try {
 			await this.session.reload();
 			setRegisteredThemes(this.session.resourceLoader.getThemes().themes);
+			this.hideThinkingBlock = this.settingsManager.getHideThinkingBlock();
+			const themeName = this.settingsManager.getTheme();
+			const themeResult = themeName ? setTheme(themeName, true) : { success: true };
+			if (!themeResult.success) {
+				this.showError(`Failed to load theme "${themeName}": ${themeResult.error}\nFell back to dark theme.`);
+			}
+			const editorPaddingX = this.settingsManager.getEditorPaddingX();
+			const autocompleteMaxVisible = this.settingsManager.getAutocompleteMaxVisible();
+			this.defaultEditor.setPaddingX(editorPaddingX);
+			this.defaultEditor.setAutocompleteMaxVisible(autocompleteMaxVisible);
+			if (this.editor !== this.defaultEditor) {
+				this.editor.setPaddingX?.(editorPaddingX);
+				this.editor.setAutocompleteMaxVisible?.(autocompleteMaxVisible);
+			}
+			this.ui.setShowHardwareCursor(this.settingsManager.getShowHardwareCursor());
+			this.ui.setClearOnShrink(this.settingsManager.getClearOnShrink());
 			this.rebuildAutocomplete();
 			const runner = this.session.extensionRunner;
 			if (runner) {
diff --git a/packages/coding-agent/test/settings-manager.test.ts b/packages/coding-agent/test/settings-manager.test.ts
index 643908ed..eb81806b 100644
--- a/packages/coding-agent/test/settings-manager.test.ts
+++ b/packages/coding-agent/test/settings-manager.test.ts
@@ -151,6 +151,48 @@ describe("SettingsManager", () => {
 		});
 	});
 
+	describe("reload", () => {
+		it("should reload global settings from disk", () => {
+			const settingsPath = join(agentDir, "settings.json");
+			writeFileSync(
+				settingsPath,
+				JSON.stringify({
+					theme: "dark",
+					extensions: ["/before.ts"],
+				}),
+			);
+
+			const manager = SettingsManager.create(projectDir, agentDir);
+
+			writeFileSync(
+				settingsPath,
+				JSON.stringify({
+					theme: "light",
+					extensions: ["/after.ts"],
+					defaultModel: "claude-sonnet",
+				}),
+			);
+
+			manager.reload();
+
+			expect(manager.getTheme()).toBe("light");
+			expect(manager.getExtensionPaths()).toEqual(["/after.ts"]);
+			expect(manager.getDefaultModel()).toBe("claude-sonnet");
+		});
+
+		it("should keep previous settings when file is invalid", () => {
+			const settingsPath = join(agentDir, "settings.json");
+			writeFileSync(settingsPath, JSON.stringify({ theme: "dark" }));
+
+			const manager = SettingsManager.create(projectDir, agentDir);
+
+			writeFileSync(settingsPath, "{ invalid json");
+			manager.reload();
+
+			expect(manager.getTheme()).toBe("dark");
+		});
+	});
+
 	describe("shellCommandPrefix", () => {
 		it("should load shellCommandPrefix from settings", () => {
 			const settingsPath = join(agentDir, "settings.json");