diff --git a/.env.example b/.env.example
index fc516a7..6091b15 100644
--- a/.env.example
+++ b/.env.example
@@ -5,10 +5,22 @@
 # Get your API key from: https://makersuite.google.com/app/apikey
 GEMINI_API_KEY=your_gemini_api_key_here
 
-# Optional: Redis connection URL for conversation memory
-# Defaults to redis://localhost:6379/0
-# For Docker: redis://redis:6379/0
-REDIS_URL=redis://localhost:6379/0
+# Optional: Default model to use
+# Full names: 'gemini-2.5-pro-preview-06-05' or 'gemini-2.0-flash-exp'
+# Defaults to gemini-2.5-pro-preview-06-05 if not specified
+DEFAULT_MODEL=gemini-2.5-pro-preview-06-05
+
+# Optional: Default thinking mode for ThinkDeep tool
+# NOTE: Only applies to models that support extended thinking (e.g., Gemini 2.5 Pro)
+#       Flash models (2.0) will use system prompt engineering instead
+# Token consumption per mode:
+#   minimal: 128 tokens   - Quick analysis, fastest response
+#   low:     2,048 tokens - Light reasoning tasks  
+#   medium:  8,192 tokens - Balanced reasoning (good for most cases)
+#   high:    16,384 tokens - Complex analysis (recommended for thinkdeep)
+#   max:     32,768 tokens - Maximum reasoning depth, slowest but most thorough
+# Defaults to 'high' if not specified
+DEFAULT_THINKING_MODE_THINKDEEP=high
 
 # Optional: Workspace root directory for file access
 # This should be the HOST path that contains all files Claude might reference
diff --git a/README.md b/README.md
index 1ff4cce..3f3b390 100644
--- a/README.md
+++ b/README.md
@@ -10,12 +10,23 @@
 
 > **📚 [Comprehensive Documentation Available](docs/)** - This README provides quick start instructions. For detailed guides, API references, architecture documentation, and development workflows, see our [complete documentation](docs/).
 
-The ultimate development partner for Claude - a Model Context Protocol server that gives Claude access to Google's Gemini 2.5 Pro for extended thinking, code analysis, and problem-solving. **Automatically reads files and directories, passing their contents to Gemini for analysis within its 1M token context.**
+The ultimate development partner for Claude - a Model Context Protocol server that gives Claude access to Google's Gemini models (2.5 Pro for extended thinking, 2.0 Flash for speed) for code analysis, problem-solving, and collaborative development. **Automatically reads files and directories, passing their contents to Gemini for analysis within its 1M token context.**
 
-**Features true AI orchestration with conversation continuity across tool usage** - start a task with one tool, continue with another, and maintain full context throughout. Claude and Gemini can collaborate seamlessly across multiple interactions and different tools, creating a unified development experience.
+**Features true AI orchestration with conversations that continue across tasks** - Give Claude a complex task and ask it to collaborate with Gemini. 
+Claude stays in control, performs the actual work, but gets a second perspective from Gemini. Claude will talk to Gemini, work on implementation, then automatically resume the 
+conversation with Gemini while maintaining the full thread. 
+Claude can switch between different Gemini tools ([`thinkdeep`](#2-thinkdeep---extended-reasoning-partner) → [`chat`](#1-chat---general-development-chat--collaborative-thinking) → [`precommit`](#4-precommit---pre-commit-validation) → [`codereview`](#3-codereview---professional-code-review)) and the conversation context carries forward seamlessly. 
+For example, in the video above, Claude was asked to debate SwiftUI vs UIKit with Gemini, resulting in a back-and-forth discussion rather than a simple one-shot query and response.
 
 **Think of it as Claude Code _for_ Claude Code.**
 
+---
+
+> ⚠️ **Active Development Notice**  
+> This project is under rapid development with frequent commits and changes over the past few days. 
+> The goal is to expand support beyond Gemini to include additional AI models and providers. 
+> **Watch this space** for new capabilities and potentially breaking changes in between updates!
+
 ## Quick Navigation
 
 - **Getting Started**
@@ -38,6 +49,7 @@ The ultimate development partner for Claude - a Model Context Protocol server th
   - [`analyze`](#6-analyze---smart-file-analysis) - File analysis
 
 - **Advanced Topics**
+  - [Model Configuration](#model-configuration) - Pro vs Flash model selection
   - [Thinking Modes](#thinking-modes---managing-token-costs--quality) - Control depth vs cost
   - [Working with Large Prompts](#working-with-large-prompts) - Bypass MCP's 25K token limit
   - [Web Search Integration](#web-search-integration) - Smart search recommendations
@@ -588,6 +600,7 @@ All tools that work with files support **both individual files and entire direct
 **`analyze`** - Analyze files or directories
 - `files`: List of file paths or directories (required)
 - `question`: What to analyze (required)
+- `model`: pro|flash (default: server default)
 - `analysis_type`: architecture|performance|security|quality|general
 - `output_format`: summary|detailed|actionable
 - `thinking_mode`: minimal|low|medium|high|max (default: medium)
@@ -595,11 +608,13 @@ All tools that work with files support **both individual files and entire direct
 
 ```
 "Use gemini to analyze the src/ directory for architectural patterns"
-"Get gemini to analyze main.py and tests/ to understand test coverage"
+"Use flash to quickly analyze main.py and tests/ to understand test coverage"
+"Use pro for deep analysis of the entire backend/ directory structure"
 ```
 
 **`codereview`** - Review code files or directories
 - `files`: List of file paths or directories (required)
+- `model`: pro|flash (default: server default)
 - `review_type`: full|security|performance|quick
 - `focus_on`: Specific aspects to focus on
 - `standards`: Coding standards to enforce
@@ -607,12 +622,13 @@ All tools that work with files support **both individual files and entire direct
 - `thinking_mode`: minimal|low|medium|high|max (default: medium)
 
 ```
-"Use gemini to review the entire api/ directory for security issues"
-"Get gemini to review src/ with focus on performance, only show critical issues"
+"Use pro to review the entire api/ directory for security issues"
+"Use flash to quickly review src/ with focus on performance, only show critical issues"
 ```
 
 **`debug`** - Debug with file context
 - `error_description`: Description of the issue (required)
+- `model`: pro|flash (default: server default)
 - `error_context`: Stack trace or logs
 - `files`: Files or directories related to the issue
 - `runtime_info`: Environment details
@@ -626,6 +642,7 @@ All tools that work with files support **both individual files and entire direct
 
 **`thinkdeep`** - Extended analysis with file context
 - `current_analysis`: Your current thinking (required)
+- `model`: pro|flash (default: server default)
 - `problem_context`: Additional context
 - `focus_areas`: Specific aspects to focus on
 - `files`: Files or directories for context
@@ -867,7 +884,31 @@ This enables better integration, error handling, and support for the dynamic con
 The server includes several configurable properties that control its behavior:
 
 ### Model Configuration
-- **`GEMINI_MODEL`**: `"gemini-2.5-pro-preview-06-05"` - The latest Gemini 2.5 Pro model with native thinking support
+
+**Default Model (Environment Variable):**
+- **`DEFAULT_MODEL`**: Set your preferred default model globally
+  - Default: `"gemini-2.5-pro-preview-06-05"` (extended thinking capabilities)
+  - Alternative: `"gemini-2.0-flash-exp"` (faster responses)
+
+**Per-Tool Model Selection:**
+All tools support a `model` parameter for flexible model switching:
+- **`"pro"`** → Gemini 2.5 Pro (extended thinking, slower, higher quality)
+- **`"flash"`** → Gemini 2.0 Flash (faster responses, lower cost)
+- **Full model names** → Direct model specification
+
+**Examples:**
+```env
+# Set default globally in .env file
+DEFAULT_MODEL=flash
+```
+
+```
+# Per-tool usage in Claude
+"Use flash to quickly analyze this function"
+"Use pro for deep architectural analysis"
+```
+
+**Token Limits:**
 - **`MAX_CONTEXT_TOKENS`**: `1,000,000` - Maximum input context (1M tokens for Gemini 2.5 Pro)
 
 ### Temperature Defaults
diff --git a/communication_simulator_test.py b/communication_simulator_test.py
new file mode 100644
index 0000000..c9b6592
--- /dev/null
+++ b/communication_simulator_test.py
@@ -0,0 +1,463 @@
+#!/usr/bin/env python3
+"""
+Communication Simulator Test for Gemini MCP Server
+
+This script provides comprehensive end-to-end testing of the Gemini MCP server
+by simulating real Claude CLI communications and validating conversation
+continuity, file handling, deduplication features, and clarification scenarios.
+
+Test Flow:
+1. Setup fresh Docker environment with clean containers
+2. Load and run individual test modules
+3. Validate system behavior through logs and Redis
+4. Cleanup and report results
+
+Usage:
+    python communication_simulator_test.py [--verbose] [--keep-logs] [--tests TEST_NAME...] [--individual TEST_NAME] [--skip-docker]
+
+    --tests: Run specific tests only (space-separated)
+    --list-tests: List all available tests
+    --individual: Run a single test individually
+    --skip-docker: Skip Docker setup (assumes containers are already running)
+
+Available tests:
+    basic_conversation          - Basic conversation flow with chat tool
+    per_tool_deduplication      - File deduplication for individual tools
+    cross_tool_continuation     - Cross-tool conversation continuation scenarios
+    content_validation          - Content validation and duplicate detection
+    logs_validation             - Docker logs validation
+    redis_validation            - Redis conversation memory validation
+
+Examples:
+    # Run all tests
+    python communication_simulator_test.py
+
+    # Run only basic conversation and content validation tests
+    python communication_simulator_test.py --tests basic_conversation content_validation
+
+    # Run a single test individually (with full Docker setup)
+    python communication_simulator_test.py --individual content_validation
+
+    # Run a single test individually (assuming Docker is already running)
+    python communication_simulator_test.py --individual content_validation --skip-docker
+
+    # List available tests
+    python communication_simulator_test.py --list-tests
+"""
+
+import argparse
+import logging
+import os
+import shutil
+import subprocess
+import sys
+import tempfile
+import time
+
+
+class CommunicationSimulator:
+    """Simulates real-world Claude CLI communication with MCP Gemini server"""
+
+    def __init__(self, verbose: bool = False, keep_logs: bool = False, selected_tests: list[str] = None):
+        self.verbose = verbose
+        self.keep_logs = keep_logs
+        self.selected_tests = selected_tests or []
+        self.temp_dir = None
+        self.container_name = "gemini-mcp-server"
+        self.redis_container = "gemini-mcp-redis"
+
+        # Import test registry
+        from simulator_tests import TEST_REGISTRY
+
+        self.test_registry = TEST_REGISTRY
+
+        # Available test methods mapping
+        self.available_tests = {
+            name: self._create_test_runner(test_class) for name, test_class in self.test_registry.items()
+        }
+
+        # Test result tracking
+        self.test_results = dict.fromkeys(self.test_registry.keys(), False)
+
+        # Configure logging
+        log_level = logging.DEBUG if verbose else logging.INFO
+        logging.basicConfig(level=log_level, format="%(asctime)s - %(levelname)s - %(message)s")
+        self.logger = logging.getLogger(__name__)
+
+    def _create_test_runner(self, test_class):
+        """Create a test runner function for a test class"""
+
+        def run_test():
+            test_instance = test_class(verbose=self.verbose)
+            result = test_instance.run_test()
+            # Update results
+            test_name = test_instance.test_name
+            self.test_results[test_name] = result
+            return result
+
+        return run_test
+
+    def setup_test_environment(self) -> bool:
+        """Setup fresh Docker environment"""
+        try:
+            self.logger.info("🚀 Setting up test environment...")
+
+            # Create temporary directory for test files
+            self.temp_dir = tempfile.mkdtemp(prefix="mcp_test_")
+            self.logger.debug(f"Created temp directory: {self.temp_dir}")
+
+            # Setup Docker environment
+            return self._setup_docker()
+
+        except Exception as e:
+            self.logger.error(f"Failed to setup test environment: {e}")
+            return False
+
+    def _setup_docker(self) -> bool:
+        """Setup fresh Docker environment"""
+        try:
+            self.logger.info("🐳 Setting up Docker environment...")
+
+            # Stop and remove existing containers
+            self._run_command(["docker", "compose", "down", "--remove-orphans"], check=False, capture_output=True)
+
+            # Clean up any old containers/images
+            old_containers = [self.container_name, self.redis_container]
+            for container in old_containers:
+                self._run_command(["docker", "stop", container], check=False, capture_output=True)
+                self._run_command(["docker", "rm", container], check=False, capture_output=True)
+
+            # Build and start services
+            self.logger.info("📦 Building Docker images...")
+            result = self._run_command(["docker", "compose", "build", "--no-cache"], capture_output=True)
+            if result.returncode != 0:
+                self.logger.error(f"Docker build failed: {result.stderr}")
+                return False
+
+            self.logger.info("🚀 Starting Docker services...")
+            result = self._run_command(["docker", "compose", "up", "-d"], capture_output=True)
+            if result.returncode != 0:
+                self.logger.error(f"Docker startup failed: {result.stderr}")
+                return False
+
+            # Wait for services to be ready
+            self.logger.info("⏳ Waiting for services to be ready...")
+            time.sleep(10)  # Give services time to initialize
+
+            # Verify containers are running
+            if not self._verify_containers():
+                return False
+
+            self.logger.info("✅ Docker environment ready")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Docker setup failed: {e}")
+            return False
+
+    def _verify_containers(self) -> bool:
+        """Verify that required containers are running"""
+        try:
+            result = self._run_command(["docker", "ps", "--format", "{{.Names}}"], capture_output=True)
+            running_containers = result.stdout.decode().strip().split("\\n")
+
+            required = [self.container_name, self.redis_container]
+            for container in required:
+                if container not in running_containers:
+                    self.logger.error(f"Container not running: {container}")
+                    return False
+
+            self.logger.debug(f"Verified containers running: {required}")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Container verification failed: {e}")
+            return False
+
+    def simulate_claude_cli_session(self) -> bool:
+        """Simulate a complete Claude CLI session with conversation continuity"""
+        try:
+            self.logger.info("🤖 Starting Claude CLI simulation...")
+
+            # If specific tests are selected, run only those
+            if self.selected_tests:
+                return self._run_selected_tests()
+
+            # Otherwise run all tests in order
+            test_sequence = list(self.test_registry.keys())
+
+            for test_name in test_sequence:
+                if not self._run_single_test(test_name):
+                    return False
+
+            self.logger.info("✅ All tests passed")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Claude CLI simulation failed: {e}")
+            return False
+
+    def _run_selected_tests(self) -> bool:
+        """Run only the selected tests"""
+        try:
+            self.logger.info(f"🎯 Running selected tests: {', '.join(self.selected_tests)}")
+
+            for test_name in self.selected_tests:
+                if not self._run_single_test(test_name):
+                    return False
+
+            self.logger.info("✅ All selected tests passed")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Selected tests failed: {e}")
+            return False
+
+    def _run_single_test(self, test_name: str) -> bool:
+        """Run a single test by name"""
+        try:
+            if test_name not in self.available_tests:
+                self.logger.error(f"Unknown test: {test_name}")
+                self.logger.info(f"Available tests: {', '.join(self.available_tests.keys())}")
+                return False
+
+            self.logger.info(f"🧪 Running test: {test_name}")
+            test_function = self.available_tests[test_name]
+            result = test_function()
+
+            if result:
+                self.logger.info(f"✅ Test {test_name} passed")
+            else:
+                self.logger.error(f"❌ Test {test_name} failed")
+
+            return result
+
+        except Exception as e:
+            self.logger.error(f"Test {test_name} failed with exception: {e}")
+            return False
+
+    def run_individual_test(self, test_name: str, skip_docker_setup: bool = False) -> bool:
+        """Run a single test individually with optional Docker setup skip"""
+        try:
+            if test_name not in self.available_tests:
+                self.logger.error(f"Unknown test: {test_name}")
+                self.logger.info(f"Available tests: {', '.join(self.available_tests.keys())}")
+                return False
+
+            self.logger.info(f"🧪 Running individual test: {test_name}")
+
+            # Setup environment unless skipped
+            if not skip_docker_setup:
+                if not self.setup_test_environment():
+                    self.logger.error("❌ Environment setup failed")
+                    return False
+
+            # Run the single test
+            test_function = self.available_tests[test_name]
+            result = test_function()
+
+            if result:
+                self.logger.info(f"✅ Individual test {test_name} passed")
+            else:
+                self.logger.error(f"❌ Individual test {test_name} failed")
+
+            return result
+
+        except Exception as e:
+            self.logger.error(f"Individual test {test_name} failed with exception: {e}")
+            return False
+        finally:
+            if not skip_docker_setup and not self.keep_logs:
+                self.cleanup()
+
+    def get_available_tests(self) -> dict[str, str]:
+        """Get available tests with descriptions"""
+        descriptions = {}
+        for name, test_class in self.test_registry.items():
+            # Create temporary instance to get description
+            temp_instance = test_class(verbose=False)
+            descriptions[name] = temp_instance.test_description
+        return descriptions
+
+    def print_test_summary(self):
+        """Print comprehensive test results summary"""
+        print("\\n" + "=" * 70)
+        print("🧪 GEMINI MCP COMMUNICATION SIMULATOR - TEST RESULTS SUMMARY")
+        print("=" * 70)
+
+        passed_count = sum(1 for result in self.test_results.values() if result)
+        total_count = len(self.test_results)
+
+        for test_name, result in self.test_results.items():
+            status = "✅ PASS" if result else "❌ FAIL"
+            # Get test description
+            temp_instance = self.test_registry[test_name](verbose=False)
+            description = temp_instance.test_description
+            print(f"📝 {description}: {status}")
+
+        print(f"\\n🎯 OVERALL RESULT: {'🎉 SUCCESS' if passed_count == total_count else '❌ FAILURE'}")
+        print(f"✅ {passed_count}/{total_count} tests passed")
+        print("=" * 70)
+        return passed_count == total_count
+
+    def run_full_test_suite(self, skip_docker_setup: bool = False) -> bool:
+        """Run the complete test suite"""
+        try:
+            self.logger.info("🚀 Starting Gemini MCP Communication Simulator Test Suite")
+
+            # Setup
+            if not skip_docker_setup:
+                if not self.setup_test_environment():
+                    self.logger.error("❌ Environment setup failed")
+                    return False
+            else:
+                self.logger.info("⏩ Skipping Docker setup (containers assumed running)")
+
+            # Main simulation
+            if not self.simulate_claude_cli_session():
+                self.logger.error("❌ Claude CLI simulation failed")
+                return False
+
+            # Print comprehensive summary
+            overall_success = self.print_test_summary()
+
+            return overall_success
+
+        except Exception as e:
+            self.logger.error(f"Test suite failed: {e}")
+            return False
+        finally:
+            if not self.keep_logs and not skip_docker_setup:
+                self.cleanup()
+
+    def cleanup(self):
+        """Cleanup test environment"""
+        try:
+            self.logger.info("🧹 Cleaning up test environment...")
+
+            if not self.keep_logs:
+                # Stop Docker services
+                self._run_command(["docker", "compose", "down", "--remove-orphans"], check=False, capture_output=True)
+            else:
+                self.logger.info("📋 Keeping Docker services running for log inspection")
+
+            # Remove temp directory
+            if self.temp_dir and os.path.exists(self.temp_dir):
+                shutil.rmtree(self.temp_dir)
+                self.logger.debug(f"Removed temp directory: {self.temp_dir}")
+
+        except Exception as e:
+            self.logger.error(f"Cleanup failed: {e}")
+
+    def _run_command(self, cmd: list[str], check: bool = True, capture_output: bool = False, **kwargs):
+        """Run a shell command with logging"""
+        if self.verbose:
+            self.logger.debug(f"Running: {' '.join(cmd)}")
+
+        return subprocess.run(cmd, check=check, capture_output=capture_output, **kwargs)
+
+
+def parse_arguments():
+    """Parse and validate command line arguments"""
+    parser = argparse.ArgumentParser(description="Gemini MCP Communication Simulator Test")
+    parser.add_argument("--verbose", "-v", action="store_true", help="Enable verbose logging")
+    parser.add_argument("--keep-logs", action="store_true", help="Keep Docker services running for log inspection")
+    parser.add_argument("--tests", "-t", nargs="+", help="Specific tests to run (space-separated)")
+    parser.add_argument("--list-tests", action="store_true", help="List available tests and exit")
+    parser.add_argument("--individual", "-i", help="Run a single test individually")
+    parser.add_argument(
+        "--skip-docker",
+        action="store_true",
+        default=True,
+        help="Skip Docker setup (assumes containers are already running) - DEFAULT",
+    )
+    parser.add_argument(
+        "--rebuild-docker", action="store_true", help="Force rebuild Docker environment (overrides --skip-docker)"
+    )
+
+    return parser.parse_args()
+
+
+def list_available_tests():
+    """List all available tests and exit"""
+    simulator = CommunicationSimulator()
+    print("Available tests:")
+    for test_name, description in simulator.get_available_tests().items():
+        print(f"  {test_name:<25} - {description}")
+
+
+def run_individual_test(simulator, test_name, skip_docker):
+    """Run a single test individually"""
+    try:
+        success = simulator.run_individual_test(test_name, skip_docker_setup=skip_docker)
+
+        if success:
+            print(f"\\n🎉 INDIVIDUAL TEST {test_name.upper()}: PASSED")
+            return 0
+        else:
+            print(f"\\n❌ INDIVIDUAL TEST {test_name.upper()}: FAILED")
+            return 1
+
+    except KeyboardInterrupt:
+        print(f"\\n🛑 Individual test {test_name} interrupted by user")
+        if not skip_docker:
+            simulator.cleanup()
+        return 130
+    except Exception as e:
+        print(f"\\n💥 Individual test {test_name} failed with error: {e}")
+        if not skip_docker:
+            simulator.cleanup()
+        return 1
+
+
+def run_test_suite(simulator, skip_docker=False):
+    """Run the full test suite or selected tests"""
+    try:
+        success = simulator.run_full_test_suite(skip_docker_setup=skip_docker)
+
+        if success:
+            print("\\n🎉 COMPREHENSIVE MCP COMMUNICATION TEST: PASSED")
+            return 0
+        else:
+            print("\\n❌ COMPREHENSIVE MCP COMMUNICATION TEST: FAILED")
+            print("⚠️  Check detailed results above")
+            return 1
+
+    except KeyboardInterrupt:
+        print("\\n🛑 Test interrupted by user")
+        if not skip_docker:
+            simulator.cleanup()
+        return 130
+    except Exception as e:
+        print(f"\\n💥 Unexpected error: {e}")
+        if not skip_docker:
+            simulator.cleanup()
+        return 1
+
+
+def main():
+    """Main entry point"""
+    args = parse_arguments()
+
+    # Handle list tests request
+    if args.list_tests:
+        list_available_tests()
+        return
+
+    # Initialize simulator consistently for all use cases
+    simulator = CommunicationSimulator(verbose=args.verbose, keep_logs=args.keep_logs, selected_tests=args.tests)
+
+    # Determine execution mode and run
+    # Override skip_docker if rebuild_docker is specified
+    skip_docker = args.skip_docker and not args.rebuild_docker
+
+    if args.individual:
+        exit_code = run_individual_test(simulator, args.individual, skip_docker)
+    else:
+        exit_code = run_test_suite(simulator, skip_docker)
+
+    sys.exit(exit_code)
+
+
+if __name__ == "__main__":
+    main()
diff --git a/config.py b/config.py
index 4ab08a3..7b2fe8d 100644
--- a/config.py
+++ b/config.py
@@ -13,21 +13,23 @@ import os
 # Version and metadata
 # These values are used in server responses and for tracking releases
 # IMPORTANT: This is the single source of truth for version and author info
-# setup.py imports these values to avoid duplication
-__version__ = "3.2.0"  # Semantic versioning: MAJOR.MINOR.PATCH
-__updated__ = "2025-06-10"  # Last update date in ISO format
+__version__ = "3.3.0"  # Semantic versioning: MAJOR.MINOR.PATCH
+__updated__ = "2025-06-11"  # Last update date in ISO format
 __author__ = "Fahad Gilani"  # Primary maintainer
 
 # Model configuration
-# GEMINI_MODEL: The Gemini model used for all AI operations
+# DEFAULT_MODEL: The default model used for all AI operations
 # This should be a stable, high-performance model suitable for code analysis
-GEMINI_MODEL = "gemini-2.5-pro-preview-06-05"
+# Can be overridden by setting DEFAULT_MODEL environment variable
+DEFAULT_MODEL = os.getenv("DEFAULT_MODEL", "gemini-2.5-pro-preview-06-05")
 
-# MAX_CONTEXT_TOKENS: Maximum number of tokens that can be included in a single request
-# This limit includes both the prompt and expected response
-# Gemini Pro models support up to 1M tokens, but practical usage should reserve
-# space for the model's response (typically 50K-100K tokens reserved)
-MAX_CONTEXT_TOKENS = 1_000_000  # 1M tokens for Gemini Pro
+# Token allocation for Gemini Pro (1M total capacity)
+# MAX_CONTEXT_TOKENS: Total model capacity
+# MAX_CONTENT_TOKENS: Available for prompts, conversation history, and files
+# RESPONSE_RESERVE_TOKENS: Reserved for model response generation
+MAX_CONTEXT_TOKENS = 1_000_000  # 1M tokens total capacity for Gemini Pro
+MAX_CONTENT_TOKENS = 800_000  # 800K tokens for content (prompts + files + history)
+RESPONSE_RESERVE_TOKENS = 200_000  # 200K tokens reserved for response generation
 
 # Temperature defaults for different tool types
 # Temperature controls the randomness/creativity of model responses
@@ -46,6 +48,11 @@ TEMPERATURE_BALANCED = 0.5  # For general chat
 # Used when brainstorming, exploring alternatives, or architectural discussions
 TEMPERATURE_CREATIVE = 0.7  # For architecture, deep thinking
 
+# Thinking Mode Defaults
+# DEFAULT_THINKING_MODE_THINKDEEP: Default thinking depth for extended reasoning tool
+# Higher modes use more computational budget but provide deeper analysis
+DEFAULT_THINKING_MODE_THINKDEEP = os.getenv("DEFAULT_THINKING_MODE_THINKDEEP", "high")
+
 # MCP Protocol Limits
 # MCP_PROMPT_SIZE_LIMIT: Maximum character size for prompts sent directly through MCP
 # The MCP protocol has a combined request+response limit of ~25K tokens.
diff --git a/docker-compose.yml b/docker-compose.yml
index f63938b..0c88ad7 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -7,7 +7,7 @@ services:
       - "6379:6379"
     volumes:
       - redis_data:/data
-    command: redis-server --save 60 1 --loglevel warning --maxmemory 512mb --maxmemory-policy allkeys-lru
+    command: redis-server --save 60 1 --loglevel warning --maxmemory 64mb --maxmemory-policy allkeys-lru
     healthcheck:
       test: ["CMD", "redis-cli", "ping"]
       interval: 30s
@@ -29,7 +29,9 @@ services:
       redis:
         condition: service_healthy
     environment:
-      - GEMINI_API_KEY=${GEMINI_API_KEY}
+      - GEMINI_API_KEY=${GEMINI_API_KEY:?GEMINI_API_KEY is required. Please set it in your .env file or environment.}
+      - DEFAULT_MODEL=${DEFAULT_MODEL:-gemini-2.5-pro-preview-06-05}
+      - DEFAULT_THINKING_MODE_THINKDEEP=${DEFAULT_THINKING_MODE_THINKDEEP:-high}
       - REDIS_URL=redis://redis:6379/0
       # Use HOME not PWD: Claude needs access to any absolute file path, not just current project,
       # and Claude Code could be running from multiple locations at the same time
@@ -39,6 +41,8 @@ services:
     volumes:
       - ${HOME:-/tmp}:/workspace:ro
       - mcp_logs:/tmp  # Shared volume for logs
+      - /etc/localtime:/etc/localtime:ro
+      - /etc/timezone:/etc/timezone:ro
     stdin_open: true
     tty: true
     entrypoint: ["python"]
@@ -55,6 +59,8 @@ services:
       - PYTHONUNBUFFERED=1
     volumes:
       - mcp_logs:/tmp  # Shared volume for logs
+      - /etc/localtime:/etc/localtime:ro
+      - /etc/timezone:/etc/timezone:ro
     entrypoint: ["python"]
     command: ["log_monitor.py"]
 
diff --git a/server.py b/server.py
index 342b547..b5dab00 100644
--- a/server.py
+++ b/server.py
@@ -22,6 +22,7 @@ import asyncio
 import logging
 import os
 import sys
+import time
 from datetime import datetime
 from typing import Any
 
@@ -31,7 +32,7 @@ from mcp.server.stdio import stdio_server
 from mcp.types import ServerCapabilities, TextContent, Tool, ToolsCapability
 
 from config import (
-    GEMINI_MODEL,
+    DEFAULT_MODEL,
     MAX_CONTEXT_TOKENS,
     __author__,
     __updated__,
@@ -51,6 +52,21 @@ from tools.models import ToolOutput
 # Can be controlled via LOG_LEVEL environment variable (DEBUG, INFO, WARNING, ERROR)
 log_level = os.getenv("LOG_LEVEL", "INFO").upper()
 
+# Create timezone-aware formatter
+
+
+class LocalTimeFormatter(logging.Formatter):
+    def formatTime(self, record, datefmt=None):
+        """Override to use local timezone instead of UTC"""
+        ct = self.converter(record.created)
+        if datefmt:
+            s = time.strftime(datefmt, ct)
+        else:
+            t = time.strftime("%Y-%m-%d %H:%M:%S", ct)
+            s = f"{t},{record.msecs:03.0f}"
+        return s
+
+
 # Configure both console and file logging
 log_format = "%(asctime)s - %(name)s - %(levelname)s - %(message)s"
 logging.basicConfig(
@@ -60,18 +76,22 @@ logging.basicConfig(
     stream=sys.stderr,  # Use stderr to avoid interfering with MCP stdin/stdout protocol
 )
 
+# Apply local time formatter to root logger
+for handler in logging.getLogger().handlers:
+    handler.setFormatter(LocalTimeFormatter(log_format))
+
 # Add file handler for Docker log monitoring
 try:
     file_handler = logging.FileHandler("/tmp/mcp_server.log")
     file_handler.setLevel(getattr(logging, log_level, logging.INFO))
-    file_handler.setFormatter(logging.Formatter(log_format))
+    file_handler.setFormatter(LocalTimeFormatter(log_format))
     logging.getLogger().addHandler(file_handler)
 
     # Create a special logger for MCP activity tracking
     mcp_logger = logging.getLogger("mcp_activity")
     mcp_file_handler = logging.FileHandler("/tmp/mcp_activity.log")
     mcp_file_handler.setLevel(logging.INFO)
-    mcp_file_handler.setFormatter(logging.Formatter("%(asctime)s - %(message)s"))
+    mcp_file_handler.setFormatter(LocalTimeFormatter("%(asctime)s - %(message)s"))
     mcp_logger.addHandler(mcp_file_handler)
     mcp_logger.setLevel(logging.INFO)
 
@@ -196,6 +216,10 @@ async def handle_call_tool(name: str, arguments: dict[str, Any]) -> list[TextCon
     if "continuation_id" in arguments and arguments["continuation_id"]:
         continuation_id = arguments["continuation_id"]
         logger.debug(f"Resuming conversation thread: {continuation_id}")
+        logger.debug(
+            f"[CONVERSATION_DEBUG] Tool '{name}' resuming thread {continuation_id} with {len(arguments)} arguments"
+        )
+        logger.debug(f"[CONVERSATION_DEBUG] Original arguments keys: {list(arguments.keys())}")
 
         # Log to activity file for monitoring
         try:
@@ -205,6 +229,9 @@ async def handle_call_tool(name: str, arguments: dict[str, Any]) -> list[TextCon
             pass
 
         arguments = await reconstruct_thread_context(arguments)
+        logger.debug(f"[CONVERSATION_DEBUG] After thread reconstruction, arguments keys: {list(arguments.keys())}")
+        if "_remaining_tokens" in arguments:
+            logger.debug(f"[CONVERSATION_DEBUG] Remaining token budget: {arguments['_remaining_tokens']:,}")
 
     # Route to AI-powered tools that require Gemini API calls
     if name in TOOLS:
@@ -300,9 +327,11 @@ async def reconstruct_thread_context(arguments: dict[str, Any]) -> dict[str, Any
     continuation_id = arguments["continuation_id"]
 
     # Get thread context from Redis
+    logger.debug(f"[CONVERSATION_DEBUG] Looking up thread {continuation_id} in Redis")
     context = get_thread(continuation_id)
     if not context:
         logger.warning(f"Thread not found: {continuation_id}")
+        logger.debug(f"[CONVERSATION_DEBUG] Thread {continuation_id} not found in Redis or expired")
 
         # Log to activity file for monitoring
         try:
@@ -324,15 +353,26 @@ async def reconstruct_thread_context(arguments: dict[str, Any]) -> dict[str, Any
     if user_prompt:
         # Capture files referenced in this turn
         user_files = arguments.get("files", [])
+        logger.debug(f"[CONVERSATION_DEBUG] Adding user turn to thread {continuation_id}")
+        logger.debug(f"[CONVERSATION_DEBUG] User prompt length: {len(user_prompt)} chars")
+        logger.debug(f"[CONVERSATION_DEBUG] User files: {user_files}")
         success = add_turn(continuation_id, "user", user_prompt, files=user_files)
         if not success:
             logger.warning(f"Failed to add user turn to thread {continuation_id}")
+            logger.debug("[CONVERSATION_DEBUG] Failed to add user turn - thread may be at turn limit or expired")
+        else:
+            logger.debug(f"[CONVERSATION_DEBUG] Successfully added user turn to thread {continuation_id}")
 
-    # Build conversation history
-    conversation_history = build_conversation_history(context)
+    # Build conversation history and track token usage
+    logger.debug(f"[CONVERSATION_DEBUG] Building conversation history for thread {continuation_id}")
+    logger.debug(f"[CONVERSATION_DEBUG] Thread has {len(context.turns)} turns, tool: {context.tool_name}")
+    conversation_history, conversation_tokens = build_conversation_history(context)
+    logger.debug(f"[CONVERSATION_DEBUG] Conversation history built: {conversation_tokens:,} tokens")
+    logger.debug(f"[CONVERSATION_DEBUG] Conversation history length: {len(conversation_history)} chars")
 
     # Add dynamic follow-up instructions based on turn count
     follow_up_instructions = get_follow_up_instructions(len(context.turns))
+    logger.debug(f"[CONVERSATION_DEBUG] Follow-up instructions added for turn {len(context.turns)}")
 
     # Merge original context with new prompt and follow-up instructions
     original_prompt = arguments.get("prompt", "")
@@ -343,17 +383,34 @@ async def reconstruct_thread_context(arguments: dict[str, Any]) -> dict[str, Any
     else:
         enhanced_prompt = f"{original_prompt}\n\n{follow_up_instructions}"
 
-    # Update arguments with enhanced context
+    # Update arguments with enhanced context and remaining token budget
     enhanced_arguments = arguments.copy()
     enhanced_arguments["prompt"] = enhanced_prompt
 
+    # Calculate remaining token budget for current request files/content
+    from config import MAX_CONTENT_TOKENS
+
+    remaining_tokens = MAX_CONTENT_TOKENS - conversation_tokens
+    enhanced_arguments["_remaining_tokens"] = max(0, remaining_tokens)  # Ensure non-negative
+    logger.debug("[CONVERSATION_DEBUG] Token budget calculation:")
+    logger.debug(f"[CONVERSATION_DEBUG]   MAX_CONTENT_TOKENS: {MAX_CONTENT_TOKENS:,}")
+    logger.debug(f"[CONVERSATION_DEBUG]   Conversation tokens: {conversation_tokens:,}")
+    logger.debug(f"[CONVERSATION_DEBUG]   Remaining tokens: {remaining_tokens:,}")
+
     # Merge original context parameters (files, etc.) with new request
     if context.initial_context:
+        logger.debug(f"[CONVERSATION_DEBUG] Merging initial context with {len(context.initial_context)} parameters")
         for key, value in context.initial_context.items():
             if key not in enhanced_arguments and key not in ["temperature", "thinking_mode", "model"]:
                 enhanced_arguments[key] = value
+                logger.debug(f"[CONVERSATION_DEBUG] Merged initial context param: {key}")
 
     logger.info(f"Reconstructed context for thread {continuation_id} (turn {len(context.turns)})")
+    logger.debug(f"[CONVERSATION_DEBUG] Final enhanced arguments keys: {list(enhanced_arguments.keys())}")
+
+    # Debug log files in the enhanced arguments for file tracking
+    if "files" in enhanced_arguments:
+        logger.debug(f"[CONVERSATION_DEBUG] Final files in enhanced arguments: {enhanced_arguments['files']}")
 
     # Log to activity file for monitoring
     try:
@@ -378,12 +435,16 @@ async def handle_get_version() -> list[TextContent]:
     Returns:
         Formatted text with version and configuration details
     """
+    # Import thinking mode here to avoid circular imports
+    from config import DEFAULT_THINKING_MODE_THINKDEEP
+
     # Gather comprehensive server information
     version_info = {
         "version": __version__,
         "updated": __updated__,
         "author": __author__,
-        "gemini_model": GEMINI_MODEL,
+        "default_model": DEFAULT_MODEL,
+        "default_thinking_mode_thinkdeep": DEFAULT_THINKING_MODE_THINKDEEP,
         "max_context_tokens": f"{MAX_CONTEXT_TOKENS:,}",
         "python_version": f"{sys.version_info.major}.{sys.version_info.minor}.{sys.version_info.micro}",
         "server_started": datetime.now().isoformat(),
@@ -396,7 +457,8 @@ Updated: {__updated__}
 Author: {__author__}
 
 Configuration:
-- Gemini Model: {GEMINI_MODEL}
+- Default Model: {DEFAULT_MODEL}
+- Default Thinking Mode (ThinkDeep): {DEFAULT_THINKING_MODE_THINKDEEP}
 - Max Context: {MAX_CONTEXT_TOKENS:,} tokens
 - Python: {version_info["python_version"]}
 - Started: {version_info["server_started"]}
@@ -429,7 +491,13 @@ async def main():
     # Log startup message for Docker log monitoring
     logger.info("Gemini MCP Server starting up...")
     logger.info(f"Log level: {log_level}")
-    logger.info(f"Using model: {GEMINI_MODEL}")
+    logger.info(f"Using default model: {DEFAULT_MODEL}")
+
+    # Import here to avoid circular imports
+    from config import DEFAULT_THINKING_MODE_THINKDEEP
+
+    logger.info(f"Default thinking mode (ThinkDeep): {DEFAULT_THINKING_MODE_THINKDEEP}")
+
     logger.info(f"Available tools: {list(TOOLS.keys())}")
     logger.info("Server ready - waiting for tool requests...")
 
diff --git a/setup-docker.sh b/setup-docker.sh
index 1c78d2c..fe5492c 100755
--- a/setup-docker.sh
+++ b/setup-docker.sh
@@ -17,41 +17,34 @@ if [ -f .env ]; then
     echo "⚠️  .env file already exists! Updating if needed..."
     echo ""
 else
-    # Check if GEMINI_API_KEY is already set in environment
-    if [ -n "$GEMINI_API_KEY" ]; then
-        API_KEY_VALUE="$GEMINI_API_KEY"
-        echo "✅ Found existing GEMINI_API_KEY in environment"
-    else
-        API_KEY_VALUE="your-gemini-api-key-here"
+    # Copy from .env.example and customize
+    if [ ! -f .env.example ]; then
+        echo "❌ .env.example file not found! This file should exist in the project directory."
+        exit 1
     fi
     
-    # Create the .env file
-    cat > .env << EOF
-# Gemini MCP Server Docker Environment Configuration
-# Generated on $(date)
-
-# Your Gemini API key (get one from https://makersuite.google.com/app/apikey)
-# IMPORTANT: Replace this with your actual API key
-GEMINI_API_KEY=$API_KEY_VALUE
-
-# Redis configuration (automatically set for Docker Compose)
-REDIS_URL=redis://redis:6379/0
-
-# Workspace root - host path that maps to /workspace in container
-# This should be the host directory path that contains all files Claude might reference
-# We use $HOME (not $PWD) because Claude needs access to ANY absolute file path,
-# not just files within the current project directory. Additionally, Claude Code
-# could be running from multiple locations at the same time.
-WORKSPACE_ROOT=$HOME
-
-# Logging level (DEBUG, INFO, WARNING, ERROR)
-# DEBUG: Shows detailed operational messages, conversation threading, tool execution flow
-# INFO: Shows general operational messages (default)
-# WARNING: Shows only warnings and errors
-# ERROR: Shows only errors
-# Uncomment and change to DEBUG if you need detailed troubleshooting information
-LOG_LEVEL=INFO
-EOF
+    # Copy .env.example to .env
+    cp .env.example .env
+    echo "✅ Created .env from .env.example"
+    
+    # Customize the API key if it's set in environment
+    if [ -n "$GEMINI_API_KEY" ]; then
+        # Replace the placeholder API key with the actual value
+        if command -v sed >/dev/null 2>&1; then
+            sed -i.bak "s/your_gemini_api_key_here/$GEMINI_API_KEY/" .env && rm .env.bak
+            echo "✅ Updated .env with existing GEMINI_API_KEY from environment"
+        else
+            echo "⚠️  Found GEMINI_API_KEY in environment, but sed not available. Please update .env manually."
+        fi
+    else
+        echo "⚠️  GEMINI_API_KEY not found in environment. Please edit .env and add your API key."
+    fi
+    
+    # Update WORKSPACE_ROOT to use current user's home directory
+    if command -v sed >/dev/null 2>&1; then
+        sed -i.bak "s|WORKSPACE_ROOT=/Users/your-username|WORKSPACE_ROOT=$HOME|" .env && rm .env.bak
+        echo "✅ Updated WORKSPACE_ROOT to $HOME"
+    fi
     echo "✅ Created .env file with Redis configuration"
     echo ""
 fi
diff --git a/setup.py b/setup.py
deleted file mode 100644
index 87b681a..0000000
--- a/setup.py
+++ /dev/null
@@ -1,52 +0,0 @@
-"""
-Setup configuration for Gemini MCP Server
-"""
-
-from pathlib import Path
-
-from setuptools import setup
-
-# Import version and author from config to maintain single source of truth
-from config import __author__, __version__
-
-# Read README for long description
-readme_path = Path(__file__).parent / "README.md"
-long_description = ""
-if readme_path.exists():
-    long_description = readme_path.read_text(encoding="utf-8")
-
-setup(
-    name="gemini-mcp-server",
-    version=__version__,
-    description="Model Context Protocol server for Google Gemini",
-    long_description=long_description,
-    long_description_content_type="text/markdown",
-    author=__author__,
-    python_requires=">=3.10",
-    py_modules=["gemini_server"],
-    install_requires=[
-        "mcp>=1.0.0",
-        "google-genai>=1.19.0",
-        "pydantic>=2.0.0",
-    ],
-    extras_require={
-        "dev": [
-            "pytest>=7.4.0",
-            "pytest-asyncio>=0.21.0",
-            "pytest-mock>=3.11.0",
-        ]
-    },
-    entry_points={
-        "console_scripts": [
-            "gemini-mcp-server=gemini_server:main",
-        ],
-    },
-    classifiers=[
-        "Development Status :: 4 - Beta",
-        "Intended Audience :: Developers",
-        "Programming Language :: Python :: 3",
-        "Programming Language :: Python :: 3.10",
-        "Programming Language :: Python :: 3.11",
-        "Programming Language :: Python :: 3.12",
-    ],
-)
diff --git a/simulator_tests/__init__.py b/simulator_tests/__init__.py
new file mode 100644
index 0000000..a83b50c
--- /dev/null
+++ b/simulator_tests/__init__.py
@@ -0,0 +1,41 @@
+"""
+Communication Simulator Tests Package
+
+This package contains individual test modules for the Gemini MCP Communication Simulator.
+Each test is in its own file for better organization and maintainability.
+"""
+
+from .base_test import BaseSimulatorTest
+from .test_basic_conversation import BasicConversationTest
+from .test_content_validation import ContentValidationTest
+from .test_cross_tool_comprehensive import CrossToolComprehensiveTest
+from .test_cross_tool_continuation import CrossToolContinuationTest
+from .test_logs_validation import LogsValidationTest
+from .test_model_thinking_config import TestModelThinkingConfig
+from .test_per_tool_deduplication import PerToolDeduplicationTest
+from .test_redis_validation import RedisValidationTest
+
+# Test registry for dynamic loading
+TEST_REGISTRY = {
+    "basic_conversation": BasicConversationTest,
+    "content_validation": ContentValidationTest,
+    "per_tool_deduplication": PerToolDeduplicationTest,
+    "cross_tool_continuation": CrossToolContinuationTest,
+    "cross_tool_comprehensive": CrossToolComprehensiveTest,
+    "logs_validation": LogsValidationTest,
+    "redis_validation": RedisValidationTest,
+    "model_thinking_config": TestModelThinkingConfig,
+}
+
+__all__ = [
+    "BaseSimulatorTest",
+    "BasicConversationTest",
+    "ContentValidationTest",
+    "PerToolDeduplicationTest",
+    "CrossToolContinuationTest",
+    "CrossToolComprehensiveTest",
+    "LogsValidationTest",
+    "RedisValidationTest",
+    "TestModelThinkingConfig",
+    "TEST_REGISTRY",
+]
diff --git a/simulator_tests/base_test.py b/simulator_tests/base_test.py
new file mode 100644
index 0000000..7a3050c
--- /dev/null
+++ b/simulator_tests/base_test.py
@@ -0,0 +1,266 @@
+#!/usr/bin/env python3
+"""
+Base Test Class for Communication Simulator Tests
+
+Provides common functionality and utilities for all simulator tests.
+"""
+
+import json
+import logging
+import os
+import subprocess
+from typing import Optional
+
+
+class BaseSimulatorTest:
+    """Base class for all communication simulator tests"""
+
+    def __init__(self, verbose: bool = False):
+        self.verbose = verbose
+        self.test_files = {}
+        self.test_dir = None
+        self.container_name = "gemini-mcp-server"
+        self.redis_container = "gemini-mcp-redis"
+
+        # Configure logging
+        log_level = logging.DEBUG if verbose else logging.INFO
+        logging.basicConfig(level=log_level, format="%(asctime)s - %(levelname)s - %(message)s")
+        self.logger = logging.getLogger(self.__class__.__name__)
+
+    def setup_test_files(self):
+        """Create test files for the simulation"""
+        # Test Python file
+        python_content = '''"""
+Sample Python module for testing MCP conversation continuity
+"""
+
+def fibonacci(n):
+    """Calculate fibonacci number recursively"""
+    if n <= 1:
+        return n
+    return fibonacci(n-1) + fibonacci(n-2)
+
+def factorial(n):
+    """Calculate factorial iteratively"""
+    result = 1
+    for i in range(1, n + 1):
+        result *= i
+    return result
+
+class Calculator:
+    """Simple calculator class"""
+
+    def __init__(self):
+        self.history = []
+
+    def add(self, a, b):
+        result = a + b
+        self.history.append(f"{a} + {b} = {result}")
+        return result
+
+    def multiply(self, a, b):
+        result = a * b
+        self.history.append(f"{a} * {b} = {result}")
+        return result
+'''
+
+        # Test configuration file
+        config_content = """{
+  "database": {
+    "host": "localhost",
+    "port": 5432,
+    "name": "testdb",
+    "ssl": true
+  },
+  "cache": {
+    "redis_url": "redis://localhost:6379",
+    "ttl": 3600
+  },
+  "logging": {
+    "level": "INFO",
+    "format": "%(asctime)s - %(name)s - %(levelname)s - %(message)s"
+  }
+}"""
+
+        # Create files in the current project directory
+        current_dir = os.getcwd()
+        self.test_dir = os.path.join(current_dir, "test_simulation_files")
+        os.makedirs(self.test_dir, exist_ok=True)
+
+        test_py = os.path.join(self.test_dir, "test_module.py")
+        test_config = os.path.join(self.test_dir, "config.json")
+
+        with open(test_py, "w") as f:
+            f.write(python_content)
+        with open(test_config, "w") as f:
+            f.write(config_content)
+
+        # Ensure absolute paths for MCP server compatibility
+        self.test_files = {"python": os.path.abspath(test_py), "config": os.path.abspath(test_config)}
+        self.logger.debug(f"Created test files with absolute paths: {list(self.test_files.values())}")
+
+    def call_mcp_tool(self, tool_name: str, params: dict) -> tuple[Optional[str], Optional[str]]:
+        """Call an MCP tool via Claude CLI (docker exec)"""
+        try:
+            # Prepare the MCP initialization and tool call sequence
+            init_request = {
+                "jsonrpc": "2.0",
+                "id": 1,
+                "method": "initialize",
+                "params": {
+                    "protocolVersion": "2024-11-05",
+                    "capabilities": {"tools": {}},
+                    "clientInfo": {"name": "communication-simulator", "version": "1.0.0"},
+                },
+            }
+
+            # Send initialized notification
+            initialized_notification = {"jsonrpc": "2.0", "method": "notifications/initialized"}
+
+            # Prepare the tool call request
+            tool_request = {
+                "jsonrpc": "2.0",
+                "id": 2,
+                "method": "tools/call",
+                "params": {"name": tool_name, "arguments": params},
+            }
+
+            # Combine all messages
+            messages = [json.dumps(init_request), json.dumps(initialized_notification), json.dumps(tool_request)]
+
+            # Join with newlines as MCP expects
+            input_data = "\n".join(messages) + "\n"
+
+            # Simulate Claude CLI calling the MCP server via docker exec
+            docker_cmd = ["docker", "exec", "-i", self.container_name, "python", "server.py"]
+
+            self.logger.debug(f"Calling MCP tool {tool_name} with proper initialization")
+
+            # Execute the command
+            result = subprocess.run(
+                docker_cmd, input=input_data, text=True, capture_output=True, timeout=3600  # 1 hour timeout
+            )
+
+            if result.returncode != 0:
+                self.logger.error(f"Docker exec failed: {result.stderr}")
+                return None, None
+
+            # Parse the response - look for the tool call response
+            response_data = self._parse_mcp_response(result.stdout, expected_id=2)
+            if not response_data:
+                return None, None
+
+            # Extract continuation_id if present
+            continuation_id = self._extract_continuation_id(response_data)
+
+            return response_data, continuation_id
+
+        except subprocess.TimeoutExpired:
+            self.logger.error(f"MCP tool call timed out after 1 hour: {tool_name}")
+            return None, None
+        except Exception as e:
+            self.logger.error(f"MCP tool call failed: {e}")
+            return None, None
+
+    def _parse_mcp_response(self, stdout: str, expected_id: int = 2) -> Optional[str]:
+        """Parse MCP JSON-RPC response from stdout"""
+        try:
+            lines = stdout.strip().split("\n")
+            for line in lines:
+                if line.strip() and line.startswith("{"):
+                    response = json.loads(line)
+                    # Look for the tool call response with the expected ID
+                    if response.get("id") == expected_id and "result" in response:
+                        # Extract the actual content from the response
+                        result = response["result"]
+                        # Handle new response format with 'content' array
+                        if isinstance(result, dict) and "content" in result:
+                            content_array = result["content"]
+                            if isinstance(content_array, list) and len(content_array) > 0:
+                                return content_array[0].get("text", "")
+                        # Handle legacy format
+                        elif isinstance(result, list) and len(result) > 0:
+                            return result[0].get("text", "")
+                    elif response.get("id") == expected_id and "error" in response:
+                        self.logger.error(f"MCP error: {response['error']}")
+                        return None
+
+            # If we get here, log all responses for debugging
+            self.logger.warning(f"No valid tool call response found for ID {expected_id}")
+            self.logger.debug(f"Full stdout: {stdout}")
+            return None
+
+        except json.JSONDecodeError as e:
+            self.logger.error(f"Failed to parse MCP response: {e}")
+            self.logger.debug(f"Stdout that failed to parse: {stdout}")
+            return None
+
+    def _extract_continuation_id(self, response_text: str) -> Optional[str]:
+        """Extract continuation_id from response metadata"""
+        try:
+            # Parse the response text as JSON to look for continuation metadata
+            response_data = json.loads(response_text)
+
+            # Look for continuation_id in various places
+            if isinstance(response_data, dict):
+                # Check metadata
+                metadata = response_data.get("metadata", {})
+                if "thread_id" in metadata:
+                    return metadata["thread_id"]
+
+                # Check follow_up_request
+                follow_up = response_data.get("follow_up_request", {})
+                if follow_up and "continuation_id" in follow_up:
+                    return follow_up["continuation_id"]
+
+                # Check continuation_offer
+                continuation_offer = response_data.get("continuation_offer", {})
+                if continuation_offer and "continuation_id" in continuation_offer:
+                    return continuation_offer["continuation_id"]
+
+            self.logger.debug(f"No continuation_id found in response: {response_data}")
+            return None
+
+        except json.JSONDecodeError as e:
+            self.logger.debug(f"Failed to parse response for continuation_id: {e}")
+            return None
+
+    def run_command(self, cmd: list[str], check: bool = True, capture_output: bool = False, **kwargs):
+        """Run a shell command with logging"""
+        if self.verbose:
+            self.logger.debug(f"Running: {' '.join(cmd)}")
+
+        return subprocess.run(cmd, check=check, capture_output=capture_output, **kwargs)
+
+    def create_additional_test_file(self, filename: str, content: str) -> str:
+        """Create an additional test file for mixed scenario testing"""
+        if not hasattr(self, "test_dir") or not self.test_dir:
+            raise RuntimeError("Test directory not initialized. Call setup_test_files() first.")
+
+        file_path = os.path.join(self.test_dir, filename)
+        with open(file_path, "w") as f:
+            f.write(content)
+        # Return absolute path for MCP server compatibility
+        return os.path.abspath(file_path)
+
+    def cleanup_test_files(self):
+        """Clean up test files"""
+        if hasattr(self, "test_dir") and self.test_dir and os.path.exists(self.test_dir):
+            import shutil
+
+            shutil.rmtree(self.test_dir)
+            self.logger.debug(f"Removed test files directory: {self.test_dir}")
+
+    def run_test(self) -> bool:
+        """Run the test - to be implemented by subclasses"""
+        raise NotImplementedError("Subclasses must implement run_test()")
+
+    @property
+    def test_name(self) -> str:
+        """Get the test name - to be implemented by subclasses"""
+        raise NotImplementedError("Subclasses must implement test_name property")
+
+    @property
+    def test_description(self) -> str:
+        """Get the test description - to be implemented by subclasses"""
+        raise NotImplementedError("Subclasses must implement test_description property")
diff --git a/simulator_tests/test_basic_conversation.py b/simulator_tests/test_basic_conversation.py
new file mode 100644
index 0000000..10b3563
--- /dev/null
+++ b/simulator_tests/test_basic_conversation.py
@@ -0,0 +1,86 @@
+#!/usr/bin/env python3
+"""
+Basic Conversation Flow Test
+
+Tests basic conversation continuity with the chat tool, including:
+- Initial chat with file analysis
+- Continuing conversation with same file (deduplication)
+- Adding additional files to ongoing conversation
+"""
+
+from .base_test import BaseSimulatorTest
+
+
+class BasicConversationTest(BaseSimulatorTest):
+    """Test basic conversation flow with chat tool"""
+
+    @property
+    def test_name(self) -> str:
+        return "basic_conversation"
+
+    @property
+    def test_description(self) -> str:
+        return "Basic conversation flow with chat tool"
+
+    def run_test(self) -> bool:
+        """Test basic conversation flow with chat tool"""
+        try:
+            self.logger.info("📝 Test: Basic conversation flow")
+
+            # Setup test files
+            self.setup_test_files()
+
+            # Initial chat tool call with file
+            self.logger.info("  1.1: Initial chat with file analysis")
+            response1, continuation_id = self.call_mcp_tool(
+                "chat",
+                {
+                    "prompt": "Please use low thinking mode. Analyze this Python code and explain what it does",
+                    "files": [self.test_files["python"]],
+                },
+            )
+
+            if not response1 or not continuation_id:
+                self.logger.error("Failed to get initial response with continuation_id")
+                return False
+
+            self.logger.info(f"  ✅ Got continuation_id: {continuation_id}")
+
+            # Continue conversation with same file (should be deduplicated)
+            self.logger.info("  1.2: Continue conversation with same file")
+            response2, _ = self.call_mcp_tool(
+                "chat",
+                {
+                    "prompt": "Please use low thinking mode. Now focus on the Calculator class specifically. Are there any improvements you'd suggest?",
+                    "files": [self.test_files["python"]],  # Same file - should be deduplicated
+                    "continuation_id": continuation_id,
+                },
+            )
+
+            if not response2:
+                self.logger.error("Failed to continue conversation")
+                return False
+
+            # Continue with additional file
+            self.logger.info("  1.3: Continue conversation with additional file")
+            response3, _ = self.call_mcp_tool(
+                "chat",
+                {
+                    "prompt": "Please use low thinking mode. Now also analyze this configuration file and see how it might relate to the Python code",
+                    "files": [self.test_files["python"], self.test_files["config"]],
+                    "continuation_id": continuation_id,
+                },
+            )
+
+            if not response3:
+                self.logger.error("Failed to continue with additional file")
+                return False
+
+            self.logger.info("  ✅ Basic conversation flow working")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Basic conversation flow test failed: {e}")
+            return False
+        finally:
+            self.cleanup_test_files()
diff --git a/simulator_tests/test_content_validation.py b/simulator_tests/test_content_validation.py
new file mode 100644
index 0000000..b9f6756
--- /dev/null
+++ b/simulator_tests/test_content_validation.py
@@ -0,0 +1,197 @@
+#!/usr/bin/env python3
+"""
+Content Validation Test
+
+Tests that tools don't duplicate file content in their responses.
+This test is specifically designed to catch content duplication bugs.
+"""
+
+import json
+import os
+
+from .base_test import BaseSimulatorTest
+
+
+class ContentValidationTest(BaseSimulatorTest):
+    """Test that tools don't duplicate file content in their responses"""
+
+    @property
+    def test_name(self) -> str:
+        return "content_validation"
+
+    @property
+    def test_description(self) -> str:
+        return "Content validation and duplicate detection"
+
+    def run_test(self) -> bool:
+        """Test that tools don't duplicate file content in their responses"""
+        try:
+            self.logger.info("📄 Test: Content validation and duplicate detection")
+
+            # Setup test files first
+            self.setup_test_files()
+
+            # Create a test file with distinctive content for validation
+            validation_content = '''"""
+Configuration file for content validation testing
+This content should appear only ONCE in any tool response
+"""
+
+# Configuration constants
+MAX_CONTENT_TOKENS = 800_000  # This line should appear exactly once
+TEMPERATURE_ANALYTICAL = 0.2  # This should also appear exactly once
+UNIQUE_VALIDATION_MARKER = "CONTENT_VALIDATION_TEST_12345"
+
+# Database settings
+DATABASE_CONFIG = {
+    "host": "localhost",
+    "port": 5432,
+    "name": "validation_test_db"
+}
+'''
+
+            validation_file = os.path.join(self.test_dir, "validation_config.py")
+            with open(validation_file, "w") as f:
+                f.write(validation_content)
+
+            # Ensure absolute path for MCP server compatibility
+            validation_file = os.path.abspath(validation_file)
+
+            # Test 1: Precommit tool with files parameter (where the bug occurred)
+            self.logger.info("  1: Testing precommit tool content duplication")
+
+            # Call precommit tool with the validation file
+            response1, thread_id = self.call_mcp_tool(
+                "precommit",
+                {
+                    "path": os.getcwd(),
+                    "files": [validation_file],
+                    "original_request": "Test for content duplication in precommit tool",
+                },
+            )
+
+            if response1:
+                # Parse response and check for content duplication
+                try:
+                    response_data = json.loads(response1)
+                    content = response_data.get("content", "")
+
+                    # Count occurrences of distinctive markers
+                    max_content_count = content.count("MAX_CONTENT_TOKENS = 800_000")
+                    temp_analytical_count = content.count("TEMPERATURE_ANALYTICAL = 0.2")
+                    unique_marker_count = content.count("UNIQUE_VALIDATION_MARKER")
+
+                    # Validate no duplication
+                    duplication_detected = False
+                    issues = []
+
+                    if max_content_count > 1:
+                        issues.append(f"MAX_CONTENT_TOKENS appears {max_content_count} times")
+                        duplication_detected = True
+
+                    if temp_analytical_count > 1:
+                        issues.append(f"TEMPERATURE_ANALYTICAL appears {temp_analytical_count} times")
+                        duplication_detected = True
+
+                    if unique_marker_count > 1:
+                        issues.append(f"UNIQUE_VALIDATION_MARKER appears {unique_marker_count} times")
+                        duplication_detected = True
+
+                    if duplication_detected:
+                        self.logger.error(f"  ❌ Content duplication detected in precommit tool: {'; '.join(issues)}")
+                        return False
+                    else:
+                        self.logger.info("  ✅ No content duplication in precommit tool")
+
+                except json.JSONDecodeError:
+                    self.logger.warning("  ⚠️  Could not parse precommit response as JSON")
+
+            else:
+                self.logger.warning("  ⚠️  Precommit tool failed to respond")
+
+            # Test 2: Other tools that use files parameter
+            tools_to_test = [
+                (
+                    "chat",
+                    {
+                        "prompt": "Please use low thinking mode. Analyze this config file",
+                        "files": [validation_file],
+                    },  # Using absolute path
+                ),
+                (
+                    "codereview",
+                    {
+                        "files": [validation_file],
+                        "context": "Please use low thinking mode. Review this configuration",
+                    },  # Using absolute path
+                ),
+                ("analyze", {"files": [validation_file], "analysis_type": "code_quality"}),  # Using absolute path
+            ]
+
+            for tool_name, params in tools_to_test:
+                self.logger.info(f"  2.{tool_name}: Testing {tool_name} tool content duplication")
+
+                response, _ = self.call_mcp_tool(tool_name, params)
+                if response:
+                    try:
+                        response_data = json.loads(response)
+                        content = response_data.get("content", "")
+
+                        # Check for duplication
+                        marker_count = content.count("UNIQUE_VALIDATION_MARKER")
+                        if marker_count > 1:
+                            self.logger.error(
+                                f"  ❌ Content duplication in {tool_name}: marker appears {marker_count} times"
+                            )
+                            return False
+                        else:
+                            self.logger.info(f"  ✅ No content duplication in {tool_name}")
+
+                    except json.JSONDecodeError:
+                        self.logger.warning(f"  ⚠️  Could not parse {tool_name} response")
+                else:
+                    self.logger.warning(f"  ⚠️  {tool_name} tool failed to respond")
+
+            # Test 3: Cross-tool content validation with file deduplication
+            self.logger.info("  3: Testing cross-tool content consistency")
+
+            if thread_id:
+                # Continue conversation with same file - content should be deduplicated in conversation history
+                response2, _ = self.call_mcp_tool(
+                    "chat",
+                    {
+                        "prompt": "Please use low thinking mode. Continue analyzing this configuration file",
+                        "files": [validation_file],  # Same file should be deduplicated
+                        "continuation_id": thread_id,
+                    },
+                )
+
+                if response2:
+                    try:
+                        response_data = json.loads(response2)
+                        content = response_data.get("content", "")
+
+                        # In continuation, the file content shouldn't be duplicated either
+                        marker_count = content.count("UNIQUE_VALIDATION_MARKER")
+                        if marker_count > 1:
+                            self.logger.error(
+                                f"  ❌ Content duplication in cross-tool continuation: marker appears {marker_count} times"
+                            )
+                            return False
+                        else:
+                            self.logger.info("  ✅ No content duplication in cross-tool continuation")
+
+                    except json.JSONDecodeError:
+                        self.logger.warning("  ⚠️  Could not parse continuation response")
+
+            # Cleanup
+            os.remove(validation_file)
+
+            self.logger.info("  ✅ All content validation tests passed")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Content validation test failed: {e}")
+            return False
+        finally:
+            self.cleanup_test_files()
diff --git a/simulator_tests/test_cross_tool_comprehensive.py b/simulator_tests/test_cross_tool_comprehensive.py
new file mode 100644
index 0000000..9da2905
--- /dev/null
+++ b/simulator_tests/test_cross_tool_comprehensive.py
@@ -0,0 +1,306 @@
+#!/usr/bin/env python3
+"""
+Comprehensive Cross-Tool Test
+
+Tests file deduplication, conversation continuation, and file handling
+across all available MCP tools using realistic workflows with low thinking mode.
+Validates:
+1. Cross-tool conversation continuation
+2. File deduplication across different tools
+3. Mixed file scenarios (old + new files)
+4. Conversation history preservation
+5. Proper tool chaining with context
+"""
+
+import subprocess
+
+from .base_test import BaseSimulatorTest
+
+
+class CrossToolComprehensiveTest(BaseSimulatorTest):
+    """Comprehensive test across all MCP tools"""
+
+    @property
+    def test_name(self) -> str:
+        return "cross_tool_comprehensive"
+
+    @property
+    def test_description(self) -> str:
+        return "Comprehensive cross-tool file deduplication and continuation"
+
+    def get_docker_logs_since(self, since_time: str) -> str:
+        """Get docker logs since a specific timestamp"""
+        try:
+            # Check both main server and log monitor for comprehensive logs
+            cmd_server = ["docker", "logs", "--since", since_time, self.container_name]
+            cmd_monitor = ["docker", "logs", "--since", since_time, "gemini-mcp-log-monitor"]
+
+            result_server = subprocess.run(cmd_server, capture_output=True, text=True)
+            result_monitor = subprocess.run(cmd_monitor, capture_output=True, text=True)
+
+            # Combine logs from both containers
+            combined_logs = result_server.stdout + "\n" + result_monitor.stdout
+            return combined_logs
+        except Exception as e:
+            self.logger.error(f"Failed to get docker logs: {e}")
+            return ""
+
+    def run_test(self) -> bool:
+        """Comprehensive cross-tool test with all MCP tools"""
+        try:
+            self.logger.info("📄 Test: Comprehensive cross-tool file deduplication and continuation")
+
+            # Setup test files
+            self.setup_test_files()
+
+            # Create short test files for quick testing
+            python_code = """def login(user, pwd):
+    # Security issue: plain text password
+    if user == "admin" and pwd == "123":
+        return True
+    return False
+
+def hash_pwd(pwd):
+    # Weak hashing
+    return str(hash(pwd))
+"""
+
+            config_file = """{
+    "db_password": "weak123",
+    "debug": true,
+    "secret_key": "test"
+}"""
+
+            auth_file = self.create_additional_test_file("auth.py", python_code)
+            config_file_path = self.create_additional_test_file("config.json", config_file)
+
+            # Get timestamp for log filtering
+            import datetime
+
+            start_time = datetime.datetime.now().strftime("%Y-%m-%dT%H:%M:%S")
+
+            # Tool chain: chat → analyze → debug → codereview → precommit
+            # Each step builds on the previous with cross-tool continuation
+
+            current_continuation_id = None
+            responses = []
+
+            # Step 1: Start with chat tool to understand the codebase
+            self.logger.info("  Step 1: chat tool - Initial codebase exploration")
+            chat_params = {
+                "prompt": "Please give me a quick one line reply. I have an authentication module that needs review. Can you help me understand potential issues?",
+                "files": [auth_file],
+                "thinking_mode": "low",
+            }
+
+            response1, continuation_id1 = self.call_mcp_tool("chat", chat_params)
+            if not response1 or not continuation_id1:
+                self.logger.error("  ❌ Step 1: chat tool failed")
+                return False
+
+            self.logger.info(f"  ✅ Step 1: chat completed with continuation_id: {continuation_id1[:8]}...")
+            responses.append(("chat", response1, continuation_id1))
+            current_continuation_id = continuation_id1
+
+            # Step 2: Use analyze tool to do deeper analysis (fresh conversation)
+            self.logger.info("  Step 2: analyze tool - Deep code analysis (fresh)")
+            analyze_params = {
+                "files": [auth_file],
+                "question": "Please give me a quick one line reply. What are the security vulnerabilities and architectural issues in this authentication code?",
+                "thinking_mode": "low",
+            }
+
+            response2, continuation_id2 = self.call_mcp_tool("analyze", analyze_params)
+            if not response2:
+                self.logger.error("  ❌ Step 2: analyze tool failed")
+                return False
+
+            self.logger.info(
+                f"  ✅ Step 2: analyze completed with continuation_id: {continuation_id2[:8] if continuation_id2 else 'None'}..."
+            )
+            responses.append(("analyze", response2, continuation_id2))
+
+            # Step 3: Continue chat conversation with config file
+            self.logger.info("  Step 3: chat continuation - Add config file context")
+            chat_continue_params = {
+                "continuation_id": current_continuation_id,
+                "prompt": "Please give me a quick one line reply. I also have this configuration file. Can you analyze it alongside the authentication code?",
+                "files": [auth_file, config_file_path],  # Old + new file
+                "thinking_mode": "low",
+            }
+
+            response3, _ = self.call_mcp_tool("chat", chat_continue_params)
+            if not response3:
+                self.logger.error("  ❌ Step 3: chat continuation failed")
+                return False
+
+            self.logger.info("  ✅ Step 3: chat continuation completed")
+            responses.append(("chat_continue", response3, current_continuation_id))
+
+            # Step 4: Use debug tool to identify specific issues
+            self.logger.info("  Step 4: debug tool - Identify specific problems")
+            debug_params = {
+                "files": [auth_file, config_file_path],
+                "error_description": "Please give me a quick one line reply. The authentication system has security vulnerabilities. Help me identify and fix the main issues.",
+                "thinking_mode": "low",
+            }
+
+            response4, continuation_id4 = self.call_mcp_tool("debug", debug_params)
+            if not response4:
+                self.logger.error("  ❌ Step 4: debug tool failed")
+                return False
+
+            self.logger.info(
+                f"  ✅ Step 4: debug completed with continuation_id: {continuation_id4[:8] if continuation_id4 else 'None'}..."
+            )
+            responses.append(("debug", response4, continuation_id4))
+
+            # Step 5: Cross-tool continuation - continue debug with chat context
+            if continuation_id4:
+                self.logger.info("  Step 5: debug continuation - Additional analysis")
+                debug_continue_params = {
+                    "continuation_id": continuation_id4,
+                    "files": [auth_file, config_file_path],
+                    "error_description": "Please give me a quick one line reply. What specific code changes would you recommend to fix the password hashing vulnerability?",
+                    "thinking_mode": "low",
+                }
+
+                response5, _ = self.call_mcp_tool("debug", debug_continue_params)
+                if response5:
+                    self.logger.info("  ✅ Step 5: debug continuation completed")
+                    responses.append(("debug_continue", response5, continuation_id4))
+
+            # Step 6: Use codereview for comprehensive review
+            self.logger.info("  Step 6: codereview tool - Comprehensive code review")
+            codereview_params = {
+                "files": [auth_file, config_file_path],
+                "context": "Please give me a quick one line reply. Comprehensive security-focused code review for production readiness",
+                "thinking_mode": "low",
+            }
+
+            response6, continuation_id6 = self.call_mcp_tool("codereview", codereview_params)
+            if not response6:
+                self.logger.error("  ❌ Step 6: codereview tool failed")
+                return False
+
+            self.logger.info(
+                f"  ✅ Step 6: codereview completed with continuation_id: {continuation_id6[:8] if continuation_id6 else 'None'}..."
+            )
+            responses.append(("codereview", response6, continuation_id6))
+
+            # Step 7: Create improved version and use precommit
+            self.logger.info("  Step 7: precommit tool - Pre-commit validation")
+
+            # Create a short improved version
+            improved_code = """import hashlib
+
+def secure_login(user, pwd):
+    # Better: hashed password check
+    hashed = hashlib.sha256(pwd.encode()).hexdigest()
+    if user == "admin" and hashed == "expected_hash":
+        return True
+    return False
+"""
+
+            improved_file = self.create_additional_test_file("auth_improved.py", improved_code)
+
+            precommit_params = {
+                "path": self.test_dir,
+                "files": [auth_file, config_file_path, improved_file],
+                "original_request": "Please give me a quick one line reply. Ready to commit security improvements to authentication module",
+                "thinking_mode": "low",
+            }
+
+            response7, continuation_id7 = self.call_mcp_tool("precommit", precommit_params)
+            if not response7:
+                self.logger.error("  ❌ Step 7: precommit tool failed")
+                return False
+
+            self.logger.info(
+                f"  ✅ Step 7: precommit completed with continuation_id: {continuation_id7[:8] if continuation_id7 else 'None'}..."
+            )
+            responses.append(("precommit", response7, continuation_id7))
+
+            # Validate comprehensive results
+            self.logger.info("  📋 Validating comprehensive cross-tool results...")
+            logs = self.get_docker_logs_since(start_time)
+
+            # Validation criteria
+            tools_used = [r[0] for r in responses]
+            continuation_ids_created = [r[2] for r in responses if r[2]]
+
+            # Check for various log patterns
+            conversation_logs = [
+                line for line in logs.split("\n") if "conversation" in line.lower() or "history" in line.lower()
+            ]
+            embedding_logs = [
+                line
+                for line in logs.split("\n")
+                if "📁" in line or "embedding" in line.lower() or "file" in line.lower()
+            ]
+            continuation_logs = [
+                line for line in logs.split("\n") if "continuation" in line.lower() or "resuming" in line.lower()
+            ]
+            cross_tool_logs = [
+                line
+                for line in logs.split("\n")
+                if any(tool in line.lower() for tool in ["chat", "analyze", "debug", "codereview", "precommit"])
+            ]
+
+            # File mentions
+            auth_file_mentioned = any("auth.py" in line for line in logs.split("\n"))
+            config_file_mentioned = any("config.json" in line for line in logs.split("\n"))
+            improved_file_mentioned = any("auth_improved.py" in line for line in logs.split("\n"))
+
+            # Print comprehensive diagnostics
+            self.logger.info(f"  📊 Tools used: {len(tools_used)} ({', '.join(tools_used)})")
+            self.logger.info(f"  📊 Continuation IDs created: {len(continuation_ids_created)}")
+            self.logger.info(f"  📊 Conversation logs found: {len(conversation_logs)}")
+            self.logger.info(f"  📊 File embedding logs found: {len(embedding_logs)}")
+            self.logger.info(f"  📊 Continuation logs found: {len(continuation_logs)}")
+            self.logger.info(f"  📊 Cross-tool activity logs: {len(cross_tool_logs)}")
+            self.logger.info(f"  📊 Auth file mentioned: {auth_file_mentioned}")
+            self.logger.info(f"  📊 Config file mentioned: {config_file_mentioned}")
+            self.logger.info(f"  📊 Improved file mentioned: {improved_file_mentioned}")
+
+            if self.verbose:
+                self.logger.debug("  📋 Sample tool activity logs:")
+                for log in cross_tool_logs[:10]:  # Show first 10
+                    if log.strip():
+                        self.logger.debug(f"    {log.strip()}")
+
+                self.logger.debug("  📋 Sample continuation logs:")
+                for log in continuation_logs[:5]:  # Show first 5
+                    if log.strip():
+                        self.logger.debug(f"    {log.strip()}")
+
+            # Comprehensive success criteria
+            success_criteria = [
+                len(tools_used) >= 5,  # Used multiple tools
+                len(continuation_ids_created) >= 3,  # Created multiple continuation threads
+                len(embedding_logs) > 10,  # Significant file embedding activity
+                len(continuation_logs) > 0,  # Evidence of continuation
+                auth_file_mentioned,  # Original file processed
+                config_file_mentioned,  # Additional file processed
+                improved_file_mentioned,  # New file processed
+                len(conversation_logs) > 5,  # Conversation history activity
+            ]
+
+            passed_criteria = sum(success_criteria)
+            total_criteria = len(success_criteria)
+
+            self.logger.info(f"  📊 Success criteria met: {passed_criteria}/{total_criteria}")
+
+            if passed_criteria >= 6:  # At least 6 out of 8 criteria
+                self.logger.info("  ✅ Comprehensive cross-tool test: PASSED")
+                return True
+            else:
+                self.logger.warning("  ⚠️ Comprehensive cross-tool test: FAILED")
+                self.logger.warning("  💡 Check logs for detailed cross-tool activity")
+                return False
+
+        except Exception as e:
+            self.logger.error(f"Comprehensive cross-tool test failed: {e}")
+            return False
+        finally:
+            self.cleanup_test_files()
diff --git a/simulator_tests/test_cross_tool_continuation.py b/simulator_tests/test_cross_tool_continuation.py
new file mode 100644
index 0000000..11e001f
--- /dev/null
+++ b/simulator_tests/test_cross_tool_continuation.py
@@ -0,0 +1,198 @@
+#!/usr/bin/env python3
+"""
+Cross-Tool Continuation Test
+
+Tests comprehensive cross-tool continuation scenarios to ensure
+conversation context is maintained when switching between different tools.
+"""
+
+from .base_test import BaseSimulatorTest
+
+
+class CrossToolContinuationTest(BaseSimulatorTest):
+    """Test comprehensive cross-tool continuation scenarios"""
+
+    @property
+    def test_name(self) -> str:
+        return "cross_tool_continuation"
+
+    @property
+    def test_description(self) -> str:
+        return "Cross-tool conversation continuation scenarios"
+
+    def run_test(self) -> bool:
+        """Test comprehensive cross-tool continuation scenarios"""
+        try:
+            self.logger.info("🔧 Test: Cross-tool continuation scenarios")
+
+            # Setup test files
+            self.setup_test_files()
+
+            success_count = 0
+            total_scenarios = 3
+
+            # Scenario 1: chat -> thinkdeep -> codereview
+            if self._test_chat_thinkdeep_codereview():
+                success_count += 1
+
+            # Scenario 2: analyze -> debug -> thinkdeep
+            if self._test_analyze_debug_thinkdeep():
+                success_count += 1
+
+            # Scenario 3: Multi-file cross-tool continuation
+            if self._test_multi_file_continuation():
+                success_count += 1
+
+            self.logger.info(
+                f"  ✅ Cross-tool continuation scenarios completed: {success_count}/{total_scenarios} scenarios passed"
+            )
+
+            # Consider successful if at least one scenario worked
+            return success_count > 0
+
+        except Exception as e:
+            self.logger.error(f"Cross-tool continuation test failed: {e}")
+            return False
+        finally:
+            self.cleanup_test_files()
+
+    def _test_chat_thinkdeep_codereview(self) -> bool:
+        """Test chat -> thinkdeep -> codereview scenario"""
+        try:
+            self.logger.info("  1: Testing chat -> thinkdeep -> codereview")
+
+            # Start with chat
+            chat_response, chat_id = self.call_mcp_tool(
+                "chat",
+                {
+                    "prompt": "Please use low thinking mode. Look at this Python code and tell me what you think about it",
+                    "files": [self.test_files["python"]],
+                },
+            )
+
+            if not chat_response or not chat_id:
+                self.logger.error("Failed to start chat conversation")
+                return False
+
+            # Continue with thinkdeep
+            thinkdeep_response, _ = self.call_mcp_tool(
+                "thinkdeep",
+                {
+                    "prompt": "Please use low thinking mode. Think deeply about potential performance issues in this code",
+                    "files": [self.test_files["python"]],  # Same file should be deduplicated
+                    "continuation_id": chat_id,
+                },
+            )
+
+            if not thinkdeep_response:
+                self.logger.error("Failed chat -> thinkdeep continuation")
+                return False
+
+            # Continue with codereview
+            codereview_response, _ = self.call_mcp_tool(
+                "codereview",
+                {
+                    "files": [self.test_files["python"]],  # Same file should be deduplicated
+                    "context": "Building on our previous analysis, provide a comprehensive code review",
+                    "continuation_id": chat_id,
+                },
+            )
+
+            if not codereview_response:
+                self.logger.error("Failed thinkdeep -> codereview continuation")
+                return False
+
+            self.logger.info("  ✅ chat -> thinkdeep -> codereview working")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Chat -> thinkdeep -> codereview scenario failed: {e}")
+            return False
+
+    def _test_analyze_debug_thinkdeep(self) -> bool:
+        """Test analyze -> debug -> thinkdeep scenario"""
+        try:
+            self.logger.info("  2: Testing analyze -> debug -> thinkdeep")
+
+            # Start with analyze
+            analyze_response, analyze_id = self.call_mcp_tool(
+                "analyze", {"files": [self.test_files["python"]], "analysis_type": "code_quality"}
+            )
+
+            if not analyze_response or not analyze_id:
+                self.logger.warning("Failed to start analyze conversation, skipping scenario 2")
+                return False
+
+            # Continue with debug
+            debug_response, _ = self.call_mcp_tool(
+                "debug",
+                {
+                    "files": [self.test_files["python"]],  # Same file should be deduplicated
+                    "issue_description": "Based on our analysis, help debug the performance issue in fibonacci",
+                    "continuation_id": analyze_id,
+                },
+            )
+
+            if not debug_response:
+                self.logger.warning("  ⚠️ analyze -> debug continuation failed")
+                return False
+
+            # Continue with thinkdeep
+            final_response, _ = self.call_mcp_tool(
+                "thinkdeep",
+                {
+                    "prompt": "Please use low thinking mode. Think deeply about the architectural implications of the issues we've found",
+                    "files": [self.test_files["python"]],  # Same file should be deduplicated
+                    "continuation_id": analyze_id,
+                },
+            )
+
+            if not final_response:
+                self.logger.warning("  ⚠️ debug -> thinkdeep continuation failed")
+                return False
+
+            self.logger.info("  ✅ analyze -> debug -> thinkdeep working")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Analyze -> debug -> thinkdeep scenario failed: {e}")
+            return False
+
+    def _test_multi_file_continuation(self) -> bool:
+        """Test multi-file cross-tool continuation"""
+        try:
+            self.logger.info("  3: Testing multi-file cross-tool continuation")
+
+            # Start with both files
+            multi_response, multi_id = self.call_mcp_tool(
+                "chat",
+                {
+                    "prompt": "Please use low thinking mode. Analyze both the Python code and configuration file",
+                    "files": [self.test_files["python"], self.test_files["config"]],
+                },
+            )
+
+            if not multi_response or not multi_id:
+                self.logger.warning("Failed to start multi-file conversation, skipping scenario 3")
+                return False
+
+            # Switch to codereview with same files (should use conversation history)
+            multi_review, _ = self.call_mcp_tool(
+                "codereview",
+                {
+                    "files": [self.test_files["python"], self.test_files["config"]],  # Same files
+                    "context": "Review both files in the context of our previous discussion",
+                    "continuation_id": multi_id,
+                },
+            )
+
+            if not multi_review:
+                self.logger.warning("  ⚠️ Multi-file cross-tool continuation failed")
+                return False
+
+            self.logger.info("  ✅ Multi-file cross-tool continuation working")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Multi-file continuation scenario failed: {e}")
+            return False
diff --git a/simulator_tests/test_logs_validation.py b/simulator_tests/test_logs_validation.py
new file mode 100644
index 0000000..514b4b5
--- /dev/null
+++ b/simulator_tests/test_logs_validation.py
@@ -0,0 +1,105 @@
+#!/usr/bin/env python3
+"""
+Docker Logs Validation Test
+
+Validates Docker logs to confirm file deduplication behavior and
+conversation threading is working properly.
+"""
+
+from .base_test import BaseSimulatorTest
+
+
+class LogsValidationTest(BaseSimulatorTest):
+    """Validate Docker logs to confirm file deduplication behavior"""
+
+    @property
+    def test_name(self) -> str:
+        return "logs_validation"
+
+    @property
+    def test_description(self) -> str:
+        return "Docker logs validation"
+
+    def run_test(self) -> bool:
+        """Validate Docker logs to confirm file deduplication behavior"""
+        try:
+            self.logger.info("📋 Test: Validating Docker logs for file deduplication...")
+
+            # Get server logs from main container
+            result = self.run_command(["docker", "logs", self.container_name], capture_output=True)
+
+            if result.returncode != 0:
+                self.logger.error(f"Failed to get Docker logs: {result.stderr}")
+                return False
+
+            main_logs = result.stdout.decode() + result.stderr.decode()
+
+            # Get logs from log monitor container (where detailed activity is logged)
+            monitor_result = self.run_command(["docker", "logs", "gemini-mcp-log-monitor"], capture_output=True)
+            monitor_logs = ""
+            if monitor_result.returncode == 0:
+                monitor_logs = monitor_result.stdout.decode() + monitor_result.stderr.decode()
+
+            # Also get activity logs for more detailed conversation tracking
+            activity_result = self.run_command(
+                ["docker", "exec", self.container_name, "cat", "/tmp/mcp_activity.log"], capture_output=True
+            )
+
+            activity_logs = ""
+            if activity_result.returncode == 0:
+                activity_logs = activity_result.stdout.decode()
+
+            logs = main_logs + "\n" + monitor_logs + "\n" + activity_logs
+
+            # Look for conversation threading patterns that indicate the system is working
+            conversation_patterns = [
+                "CONVERSATION_RESUME",
+                "CONVERSATION_CONTEXT",
+                "previous turns loaded",
+                "tool embedding",
+                "files included",
+                "files truncated",
+                "already in conversation history",
+            ]
+
+            conversation_lines = []
+            for line in logs.split("\n"):
+                for pattern in conversation_patterns:
+                    if pattern.lower() in line.lower():
+                        conversation_lines.append(line.strip())
+                        break
+
+            # Look for evidence of conversation threading and file handling
+            conversation_threading_found = False
+            multi_turn_conversations = False
+
+            for line in conversation_lines:
+                lower_line = line.lower()
+                if "conversation_resume" in lower_line:
+                    conversation_threading_found = True
+                    self.logger.debug(f"📄 Conversation threading: {line}")
+                elif "previous turns loaded" in lower_line:
+                    multi_turn_conversations = True
+                    self.logger.debug(f"📄 Multi-turn conversation: {line}")
+                elif "already in conversation" in lower_line:
+                    self.logger.info(f"✅ Found explicit deduplication: {line}")
+                    return True
+
+            # Conversation threading with multiple turns is evidence of file deduplication working
+            if conversation_threading_found and multi_turn_conversations:
+                self.logger.info("✅ Conversation threading with multi-turn context working")
+                self.logger.info(
+                    "✅ File deduplication working implicitly (files embedded once in conversation history)"
+                )
+                return True
+            elif conversation_threading_found:
+                self.logger.info("✅ Conversation threading detected")
+                return True
+            else:
+                self.logger.warning("⚠️  No clear evidence of conversation threading in logs")
+                self.logger.debug(f"Found {len(conversation_lines)} conversation-related log lines")
+                return False
+
+        except Exception as e:
+            self.logger.error(f"Log validation failed: {e}")
+            return False
diff --git a/simulator_tests/test_model_thinking_config.py b/simulator_tests/test_model_thinking_config.py
new file mode 100644
index 0000000..dce19e2
--- /dev/null
+++ b/simulator_tests/test_model_thinking_config.py
@@ -0,0 +1,177 @@
+#!/usr/bin/env python3
+"""
+Model Thinking Configuration Test
+
+Tests that thinking configuration is properly applied only to models that support it,
+and that Flash models work correctly without thinking config.
+"""
+
+from .base_test import BaseSimulatorTest
+
+
+class TestModelThinkingConfig(BaseSimulatorTest):
+    """Test model-specific thinking configuration behavior"""
+
+    @property
+    def test_name(self) -> str:
+        return "model_thinking_config"
+
+    @property
+    def test_description(self) -> str:
+        return "Model-specific thinking configuration behavior"
+
+    def test_pro_model_with_thinking_config(self):
+        """Test that Pro model uses thinking configuration"""
+        self.logger.info("Testing Pro model with thinking configuration...")
+
+        try:
+            # Test with explicit pro model and high thinking mode
+            response, continuation_id = self.call_mcp_tool(
+                "chat",
+                {
+                    "prompt": "What is 2 + 2? Please think carefully and explain.",
+                    "model": "pro",  # Should resolve to gemini-2.5-pro-preview-06-05
+                    "thinking_mode": "high",  # Should use thinking_config
+                },
+            )
+
+            if not response:
+                raise Exception("Pro model test failed: No response received")
+
+            self.logger.info("✅ Pro model with thinking config works correctly")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"❌ Pro model test failed: {e}")
+            return False
+
+    def test_flash_model_without_thinking_config(self):
+        """Test that Flash model works without thinking configuration"""
+        self.logger.info("Testing Flash model without thinking configuration...")
+
+        try:
+            # Test with explicit flash model and thinking mode (should be ignored)
+            response, continuation_id = self.call_mcp_tool(
+                "chat",
+                {
+                    "prompt": "What is 3 + 3? Give a quick answer.",
+                    "model": "flash",  # Should resolve to gemini-2.0-flash-exp
+                    "thinking_mode": "high",  # Should be ignored for Flash model
+                },
+            )
+
+            if not response:
+                raise Exception("Flash model test failed: No response received")
+
+            self.logger.info("✅ Flash model without thinking config works correctly")
+            return True
+
+        except Exception as e:
+            if "thinking" in str(e).lower() and ("not supported" in str(e).lower() or "invalid" in str(e).lower()):
+                raise Exception(f"Flash model incorrectly tried to use thinking config: {e}")
+            self.logger.error(f"❌ Flash model test failed: {e}")
+            return False
+
+    def test_model_resolution_logic(self):
+        """Test that model resolution works correctly for both shortcuts and full names"""
+        self.logger.info("Testing model resolution logic...")
+
+        test_cases = [
+            ("pro", "should work with Pro model"),
+            ("flash", "should work with Flash model"),
+            ("gemini-2.5-pro-preview-06-05", "should work with full Pro model name"),
+            ("gemini-2.0-flash-exp", "should work with full Flash model name"),
+        ]
+
+        success_count = 0
+
+        for model_name, description in test_cases:
+            try:
+                response, continuation_id = self.call_mcp_tool(
+                    "chat",
+                    {
+                        "prompt": f"Test with {model_name}: What is 1 + 1?",
+                        "model": model_name,
+                        "thinking_mode": "medium",
+                    },
+                )
+
+                if not response:
+                    raise Exception(f"No response received for model {model_name}")
+
+                self.logger.info(f"✅ {model_name} {description}")
+                success_count += 1
+
+            except Exception as e:
+                self.logger.error(f"❌ {model_name} failed: {e}")
+                return False
+
+        return success_count == len(test_cases)
+
+    def test_default_model_behavior(self):
+        """Test behavior with server default model (no explicit model specified)"""
+        self.logger.info("Testing default model behavior...")
+
+        try:
+            # Test without specifying model (should use server default)
+            response, continuation_id = self.call_mcp_tool(
+                "chat",
+                {
+                    "prompt": "Test default model: What is 4 + 4?",
+                    # No model specified - should use DEFAULT_MODEL from config
+                    "thinking_mode": "medium",
+                },
+            )
+
+            if not response:
+                raise Exception("Default model test failed: No response received")
+
+            self.logger.info("✅ Default model behavior works correctly")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"❌ Default model test failed: {e}")
+            return False
+
+    def run_test(self) -> bool:
+        """Run all model thinking configuration tests"""
+        self.logger.info(f"📝 Test: {self.test_description}")
+
+        try:
+            # Test Pro model with thinking config
+            if not self.test_pro_model_with_thinking_config():
+                return False
+
+            # Test Flash model without thinking config
+            if not self.test_flash_model_without_thinking_config():
+                return False
+
+            # Test model resolution logic
+            if not self.test_model_resolution_logic():
+                return False
+
+            # Test default model behavior
+            if not self.test_default_model_behavior():
+                return False
+
+            self.logger.info(f"✅ All {self.test_name} tests passed!")
+            return True
+
+        except Exception as e:
+            self.logger.error(f"❌ {self.test_name} test failed: {e}")
+            return False
+
+
+def main():
+    """Run the model thinking configuration tests"""
+    import sys
+
+    verbose = "--verbose" in sys.argv or "-v" in sys.argv
+    test = TestModelThinkingConfig(verbose=verbose)
+
+    success = test.run_test()
+    sys.exit(0 if success else 1)
+
+
+if __name__ == "__main__":
+    main()
diff --git a/simulator_tests/test_per_tool_deduplication.py b/simulator_tests/test_per_tool_deduplication.py
new file mode 100644
index 0000000..0fa6ba1
--- /dev/null
+++ b/simulator_tests/test_per_tool_deduplication.py
@@ -0,0 +1,232 @@
+#!/usr/bin/env python3
+"""
+Per-Tool File Deduplication Test
+
+Tests file deduplication for each individual MCP tool to ensure
+that files are properly deduplicated within single-tool conversations.
+Validates that:
+1. Files are embedded only once in conversation history
+2. Continuation calls don't re-read existing files
+3. New files are still properly embedded
+4. Docker logs show deduplication behavior
+"""
+
+import subprocess
+
+from .base_test import BaseSimulatorTest
+
+
+class PerToolDeduplicationTest(BaseSimulatorTest):
+    """Test file deduplication for each individual tool"""
+
+    @property
+    def test_name(self) -> str:
+        return "per_tool_deduplication"
+
+    @property
+    def test_description(self) -> str:
+        return "File deduplication for individual tools"
+
+    def get_docker_logs_since(self, since_time: str) -> str:
+        """Get docker logs since a specific timestamp"""
+        try:
+            # Check both main server and log monitor for comprehensive logs
+            cmd_server = ["docker", "logs", "--since", since_time, self.container_name]
+            cmd_monitor = ["docker", "logs", "--since", since_time, "gemini-mcp-log-monitor"]
+
+            result_server = subprocess.run(cmd_server, capture_output=True, text=True)
+            result_monitor = subprocess.run(cmd_monitor, capture_output=True, text=True)
+
+            # Combine logs from both containers
+            combined_logs = result_server.stdout + "\n" + result_monitor.stdout
+            return combined_logs
+        except Exception as e:
+            self.logger.error(f"Failed to get docker logs: {e}")
+            return ""
+
+    # create_additional_test_file method now inherited from base class
+
+    def validate_file_deduplication_in_logs(self, logs: str, tool_name: str, test_file: str) -> bool:
+        """Validate that logs show file deduplication behavior"""
+        # Look for file embedding messages
+        embedding_messages = [
+            line for line in logs.split("\n") if "📁" in line and "embedding" in line and tool_name in line
+        ]
+
+        # Look for deduplication/filtering messages
+        filtering_messages = [
+            line for line in logs.split("\n") if "📁" in line and "Filtering" in line and tool_name in line
+        ]
+        skipping_messages = [
+            line for line in logs.split("\n") if "📁" in line and "skipping" in line and tool_name in line
+        ]
+
+        deduplication_found = len(filtering_messages) > 0 or len(skipping_messages) > 0
+
+        if deduplication_found:
+            self.logger.info(f"  ✅ {tool_name}: Found deduplication evidence in logs")
+            for msg in filtering_messages + skipping_messages:
+                self.logger.debug(f"    📁 {msg.strip()}")
+        else:
+            self.logger.warning(f"  ⚠️ {tool_name}: No deduplication evidence found in logs")
+            self.logger.debug(f"  📁 All embedding messages: {embedding_messages}")
+
+        return deduplication_found
+
+    def run_test(self) -> bool:
+        """Test file deduplication with realistic precommit/codereview workflow"""
+        try:
+            self.logger.info("📄 Test: Simplified file deduplication with precommit/codereview workflow")
+
+            # Setup test files
+            self.setup_test_files()
+
+            # Create a short dummy file for quick testing
+            dummy_content = """def add(a, b):
+    return a + b  # Missing type hints
+
+def divide(x, y):
+    return x / y  # No zero check
+"""
+            dummy_file_path = self.create_additional_test_file("dummy_code.py", dummy_content)
+
+            # Get timestamp for log filtering
+            import datetime
+
+            start_time = datetime.datetime.now().strftime("%Y-%m-%dT%H:%M:%S")
+
+            # Step 1: precommit tool with dummy file (low thinking mode)
+            self.logger.info("  Step 1: precommit tool with dummy file")
+            precommit_params = {
+                "path": self.test_dir,  # Required path parameter
+                "files": [dummy_file_path],
+                "original_request": "Please give me a quick one line reply. Review this code for commit readiness",
+                "thinking_mode": "low",
+            }
+
+            response1, continuation_id = self.call_mcp_tool("precommit", precommit_params)
+            if not response1:
+                self.logger.error("  ❌ Step 1: precommit tool failed")
+                return False
+
+            if not continuation_id:
+                self.logger.error("  ❌ Step 1: precommit tool didn't provide continuation_id")
+                return False
+
+            # Validate continuation_id format (should be UUID)
+            if len(continuation_id) < 32:
+                self.logger.error(f"  ❌ Step 1: Invalid continuation_id format: {continuation_id}")
+                return False
+
+            self.logger.info(f"  ✅ Step 1: precommit completed with continuation_id: {continuation_id[:8]}...")
+
+            # Step 2: codereview tool with same file (NO continuation - fresh conversation)
+            self.logger.info("  Step 2: codereview tool with same file (fresh conversation)")
+            codereview_params = {
+                "files": [dummy_file_path],
+                "context": "Please give me a quick one line reply. General code review for quality and best practices",
+                "thinking_mode": "low",
+            }
+
+            response2, _ = self.call_mcp_tool("codereview", codereview_params)
+            if not response2:
+                self.logger.error("  ❌ Step 2: codereview tool failed")
+                return False
+
+            self.logger.info("  ✅ Step 2: codereview completed (fresh conversation)")
+
+            # Step 3: Create new file and continue with precommit
+            self.logger.info("  Step 3: precommit continuation with old + new file")
+            new_file_content = """def multiply(x, y):
+    return x * y
+
+def subtract(a, b):
+    return a - b
+"""
+            new_file_path = self.create_additional_test_file("new_feature.py", new_file_content)
+
+            # Continue precommit with both files
+            continue_params = {
+                "continuation_id": continuation_id,
+                "path": self.test_dir,  # Required path parameter
+                "files": [dummy_file_path, new_file_path],  # Old + new file
+                "original_request": "Please give me a quick one line reply. Now also review the new feature file along with the previous one",
+                "thinking_mode": "low",
+            }
+
+            response3, _ = self.call_mcp_tool("precommit", continue_params)
+            if not response3:
+                self.logger.error("  ❌ Step 3: precommit continuation failed")
+                return False
+
+            self.logger.info("  ✅ Step 3: precommit continuation completed")
+
+            # Validate results in docker logs
+            self.logger.info("  📋 Validating conversation history and file deduplication...")
+            logs = self.get_docker_logs_since(start_time)
+
+            # Check for conversation history building
+            conversation_logs = [
+                line for line in logs.split("\n") if "conversation" in line.lower() or "history" in line.lower()
+            ]
+
+            # Check for file embedding/deduplication
+            embedding_logs = [
+                line
+                for line in logs.split("\n")
+                if "📁" in line or "embedding" in line.lower() or "file" in line.lower()
+            ]
+
+            # Check for continuation evidence
+            continuation_logs = [
+                line for line in logs.split("\n") if "continuation" in line.lower() or continuation_id[:8] in line
+            ]
+
+            # Check for both files mentioned
+            dummy_file_mentioned = any("dummy_code.py" in line for line in logs.split("\n"))
+            new_file_mentioned = any("new_feature.py" in line for line in logs.split("\n"))
+
+            # Print diagnostic information
+            self.logger.info(f"  📊 Conversation logs found: {len(conversation_logs)}")
+            self.logger.info(f"  📊 File embedding logs found: {len(embedding_logs)}")
+            self.logger.info(f"  📊 Continuation logs found: {len(continuation_logs)}")
+            self.logger.info(f"  📊 Dummy file mentioned: {dummy_file_mentioned}")
+            self.logger.info(f"  📊 New file mentioned: {new_file_mentioned}")
+
+            if self.verbose:
+                self.logger.debug("  📋 Sample embedding logs:")
+                for log in embedding_logs[:5]:  # Show first 5
+                    if log.strip():
+                        self.logger.debug(f"    {log.strip()}")
+
+                self.logger.debug("  📋 Sample continuation logs:")
+                for log in continuation_logs[:3]:  # Show first 3
+                    if log.strip():
+                        self.logger.debug(f"    {log.strip()}")
+
+            # Determine success criteria
+            success_criteria = [
+                len(embedding_logs) > 0,  # File embedding occurred
+                len(continuation_logs) > 0,  # Continuation worked
+                dummy_file_mentioned,  # Original file processed
+                new_file_mentioned,  # New file processed
+            ]
+
+            passed_criteria = sum(success_criteria)
+            total_criteria = len(success_criteria)
+
+            self.logger.info(f"  📊 Success criteria met: {passed_criteria}/{total_criteria}")
+
+            if passed_criteria >= 3:  # At least 3 out of 4 criteria
+                self.logger.info("  ✅ File deduplication workflow test: PASSED")
+                return True
+            else:
+                self.logger.warning("  ⚠️ File deduplication workflow test: FAILED")
+                self.logger.warning("  💡 Check docker logs for detailed file embedding and continuation activity")
+                return False
+
+        except Exception as e:
+            self.logger.error(f"File deduplication workflow test failed: {e}")
+            return False
+        finally:
+            self.cleanup_test_files()
diff --git a/simulator_tests/test_redis_validation.py b/simulator_tests/test_redis_validation.py
new file mode 100644
index 0000000..a2acce2
--- /dev/null
+++ b/simulator_tests/test_redis_validation.py
@@ -0,0 +1,139 @@
+#!/usr/bin/env python3
+"""
+Redis Conversation Memory Validation Test
+
+Validates that conversation memory is working via Redis by checking
+for stored conversation threads and their content.
+"""
+
+import json
+
+from .base_test import BaseSimulatorTest
+
+
+class RedisValidationTest(BaseSimulatorTest):
+    """Validate that conversation memory is working via Redis"""
+
+    @property
+    def test_name(self) -> str:
+        return "redis_validation"
+
+    @property
+    def test_description(self) -> str:
+        return "Redis conversation memory validation"
+
+    def run_test(self) -> bool:
+        """Validate that conversation memory is working via Redis"""
+        try:
+            self.logger.info("💾 Test: Validating conversation memory via Redis...")
+
+            # First, test Redis connectivity
+            ping_result = self.run_command(
+                ["docker", "exec", self.redis_container, "redis-cli", "ping"], capture_output=True
+            )
+
+            if ping_result.returncode != 0:
+                self.logger.error("Failed to connect to Redis")
+                return False
+
+            if "PONG" not in ping_result.stdout.decode():
+                self.logger.error("Redis ping failed")
+                return False
+
+            self.logger.info("✅ Redis connectivity confirmed")
+
+            # Check Redis for stored conversations
+            result = self.run_command(
+                ["docker", "exec", self.redis_container, "redis-cli", "KEYS", "thread:*"], capture_output=True
+            )
+
+            if result.returncode != 0:
+                self.logger.error("Failed to query Redis")
+                return False
+
+            keys = result.stdout.decode().strip().split("\n")
+            thread_keys = [k for k in keys if k.startswith("thread:") and k != "thread:*"]
+
+            if thread_keys:
+                self.logger.info(f"✅ Found {len(thread_keys)} conversation threads in Redis")
+
+                # Get details of first thread
+                thread_key = thread_keys[0]
+                result = self.run_command(
+                    ["docker", "exec", self.redis_container, "redis-cli", "GET", thread_key], capture_output=True
+                )
+
+                if result.returncode == 0:
+                    thread_data = result.stdout.decode()
+                    try:
+                        parsed = json.loads(thread_data)
+                        turns = parsed.get("turns", [])
+                        self.logger.info(f"✅ Thread has {len(turns)} turns")
+                        return True
+                    except json.JSONDecodeError:
+                        self.logger.warning("Could not parse thread data")
+
+                return True
+            else:
+                # If no existing threads, create a test thread to validate Redis functionality
+                self.logger.info("📝 No existing threads found, creating test thread to validate Redis...")
+
+                test_thread_id = "test_thread_validation"
+                test_data = {
+                    "thread_id": test_thread_id,
+                    "turns": [
+                        {"tool": "chat", "timestamp": "2025-06-11T16:30:00Z", "prompt": "Test validation prompt"}
+                    ],
+                }
+
+                # Store test data
+                store_result = self.run_command(
+                    [
+                        "docker",
+                        "exec",
+                        self.redis_container,
+                        "redis-cli",
+                        "SET",
+                        f"thread:{test_thread_id}",
+                        json.dumps(test_data),
+                    ],
+                    capture_output=True,
+                )
+
+                if store_result.returncode != 0:
+                    self.logger.error("Failed to store test data in Redis")
+                    return False
+
+                # Retrieve test data
+                retrieve_result = self.run_command(
+                    ["docker", "exec", self.redis_container, "redis-cli", "GET", f"thread:{test_thread_id}"],
+                    capture_output=True,
+                )
+
+                if retrieve_result.returncode != 0:
+                    self.logger.error("Failed to retrieve test data from Redis")
+                    return False
+
+                retrieved_data = retrieve_result.stdout.decode()
+                try:
+                    parsed = json.loads(retrieved_data)
+                    if parsed.get("thread_id") == test_thread_id:
+                        self.logger.info("✅ Redis read/write validation successful")
+
+                        # Clean up test data
+                        self.run_command(
+                            ["docker", "exec", self.redis_container, "redis-cli", "DEL", f"thread:{test_thread_id}"],
+                            capture_output=True,
+                        )
+
+                        return True
+                    else:
+                        self.logger.error("Retrieved data doesn't match stored data")
+                        return False
+                except json.JSONDecodeError:
+                    self.logger.error("Could not parse retrieved test data")
+                    return False
+
+        except Exception as e:
+            self.logger.error(f"Conversation memory validation failed: {e}")
+            return False
diff --git a/tests/test_claude_continuation.py b/tests/test_claude_continuation.py
index 5db406b..2514958 100644
--- a/tests/test_claude_continuation.py
+++ b/tests/test_claude_continuation.py
@@ -196,8 +196,8 @@ class TestClaudeContinuationOffers:
             assert response_data.get("continuation_offer") is None
 
     @patch("utils.conversation_memory.get_redis_client")
-    async def test_threaded_conversation_no_continuation_offer(self, mock_redis):
-        """Test that threaded conversations don't get continuation offers"""
+    async def test_threaded_conversation_with_continuation_offer(self, mock_redis):
+        """Test that threaded conversations still get continuation offers when turns remain"""
         mock_client = Mock()
         mock_redis.return_value = mock_client
 
@@ -234,9 +234,10 @@ class TestClaudeContinuationOffers:
             # Parse response
             response_data = json.loads(response[0].text)
 
-            # Should be regular success, not continuation offer
-            assert response_data["status"] == "success"
-            assert response_data.get("continuation_offer") is None
+            # Should offer continuation since there are remaining turns (9 remaining: 10 max - 0 current - 1)
+            assert response_data["status"] == "continuation_available"
+            assert response_data.get("continuation_offer") is not None
+            assert response_data["continuation_offer"]["remaining_turns"] == 9
 
     def test_max_turns_reached_no_continuation_offer(self):
         """Test that no continuation is offered when max turns would be exceeded"""
@@ -404,9 +405,11 @@ class TestContinuationIntegration:
         # Step 3: Claude uses continuation_id
         request2 = ToolRequest(prompt="Now analyze the performance aspects", continuation_id=thread_id)
 
-        # This should NOT offer another continuation (already threaded)
+        # Should still offer continuation if there are remaining turns
         continuation_data2 = self.tool._check_continuation_opportunity(request2)
-        assert continuation_data2 is None
+        assert continuation_data2 is not None
+        assert continuation_data2["remaining_turns"] == 8  # MAX_CONVERSATION_TURNS(10) - current_turns(1) - 1
+        assert continuation_data2["tool_name"] == "test_continuation"
 
 
 if __name__ == "__main__":
diff --git a/tests/test_config.py b/tests/test_config.py
index 1582aa2..50c09c5 100644
--- a/tests/test_config.py
+++ b/tests/test_config.py
@@ -3,7 +3,7 @@ Tests for configuration
 """
 
 from config import (
-    GEMINI_MODEL,
+    DEFAULT_MODEL,
     MAX_CONTEXT_TOKENS,
     TEMPERATURE_ANALYTICAL,
     TEMPERATURE_BALANCED,
@@ -31,7 +31,7 @@ class TestConfig:
 
     def test_model_config(self):
         """Test model configuration"""
-        assert GEMINI_MODEL == "gemini-2.5-pro-preview-06-05"
+        assert DEFAULT_MODEL == "gemini-2.5-pro-preview-06-05"
         assert MAX_CONTEXT_TOKENS == 1_000_000
 
     def test_temperature_defaults(self):
diff --git a/tests/test_conversation_memory.py b/tests/test_conversation_memory.py
index e2b93f7..935d99c 100644
--- a/tests/test_conversation_memory.py
+++ b/tests/test_conversation_memory.py
@@ -166,7 +166,7 @@ class TestConversationMemory:
             initial_context={},
         )
 
-        history = build_conversation_history(context)
+        history, tokens = build_conversation_history(context)
 
         # Test basic structure
         assert "CONVERSATION HISTORY" in history
@@ -207,8 +207,9 @@ class TestConversationMemory:
             initial_context={},
         )
 
-        history = build_conversation_history(context)
+        history, tokens = build_conversation_history(context)
         assert history == ""
+        assert tokens == 0
 
 
 class TestConversationFlow:
@@ -373,7 +374,7 @@ class TestConversationFlow:
                 initial_context={},
             )
 
-            history = build_conversation_history(context)
+            history, tokens = build_conversation_history(context)
             expected_turn_text = f"Turn {test_max}/{MAX_CONVERSATION_TURNS}"
             assert expected_turn_text in history
 
@@ -595,7 +596,7 @@ class TestConversationFlow:
             initial_context={"prompt": "Analyze this codebase", "files": ["/project/src/"]},
         )
 
-        history = build_conversation_history(final_context)
+        history, tokens = build_conversation_history(final_context)
 
         # Verify chronological order and speaker identification
         assert "--- Turn 1 (Gemini using analyze) ---" in history
@@ -670,7 +671,7 @@ class TestConversationFlow:
         mock_client.get.return_value = context_with_followup.model_dump_json()
 
         # Build history to verify follow-up is preserved
-        history = build_conversation_history(context_with_followup)
+        history, tokens = build_conversation_history(context_with_followup)
         assert "Found potential issue in authentication" in history
         assert "[Gemini's Follow-up: Should I examine the authentication middleware?]" in history
 
@@ -762,7 +763,7 @@ class TestConversationFlow:
             )
 
             # Build conversation history (should handle token limits gracefully)
-            history = build_conversation_history(context)
+            history, tokens = build_conversation_history(context)
 
             # Verify the history was built successfully
             assert "=== CONVERSATION HISTORY ===" in history
diff --git a/tests/test_cross_tool_continuation.py b/tests/test_cross_tool_continuation.py
index ef3861a..86675c7 100644
--- a/tests/test_cross_tool_continuation.py
+++ b/tests/test_cross_tool_continuation.py
@@ -186,8 +186,8 @@ class TestCrossToolContinuation:
             response = await self.review_tool.execute(arguments)
             response_data = json.loads(response[0].text)
 
-            # Should successfully continue the conversation
-            assert response_data["status"] == "success"
+            # Should offer continuation since there are remaining turns available
+            assert response_data["status"] == "continuation_available"
             assert "Critical security vulnerability confirmed" in response_data["content"]
 
         # Step 4: Verify the cross-tool continuation worked
@@ -247,7 +247,7 @@ class TestCrossToolContinuation:
         # Build conversation history
         from utils.conversation_memory import build_conversation_history
 
-        history = build_conversation_history(thread_context)
+        history, tokens = build_conversation_history(thread_context)
 
         # Verify tool names are included in the history
         assert "Turn 1 (Gemini using test_analysis)" in history
@@ -307,7 +307,7 @@ class TestCrossToolContinuation:
             response = await self.review_tool.execute(arguments)
             response_data = json.loads(response[0].text)
 
-            assert response_data["status"] == "success"
+            assert response_data["status"] == "continuation_available"
 
         # Verify files from both tools are tracked in Redis calls
         setex_calls = mock_client.setex.call_args_list
diff --git a/tests/test_large_prompt_handling.py b/tests/test_large_prompt_handling.py
index 48fbb2d..0b6c3ca 100644
--- a/tests/test_large_prompt_handling.py
+++ b/tests/test_large_prompt_handling.py
@@ -214,15 +214,15 @@ class TestLargePromptHandling:
             mock_model.generate_content.return_value = mock_response
             mock_create_model.return_value = mock_model
 
-            # Mock read_files to avoid file system access
-            with patch("tools.chat.read_files") as mock_read_files:
-                mock_read_files.return_value = "File content"
+            # Mock the centralized file preparation method to avoid file system access
+            with patch.object(tool, "_prepare_file_content_for_prompt") as mock_prepare_files:
+                mock_prepare_files.return_value = "File content"
 
                 await tool.execute({"prompt": "", "files": [temp_prompt_file, other_file]})
 
                 # Verify prompt.txt was removed from files list
-                mock_read_files.assert_called_once()
-                files_arg = mock_read_files.call_args[0][0]
+                mock_prepare_files.assert_called_once()
+                files_arg = mock_prepare_files.call_args[0][0]
                 assert len(files_arg) == 1
                 assert files_arg[0] == other_file
 
diff --git a/tests/test_precommit.py b/tests/test_precommit.py
index c4adf4c..bb05c11 100644
--- a/tests/test_precommit.py
+++ b/tests/test_precommit.py
@@ -228,10 +228,8 @@ class TestPrecommitTool:
     @patch("tools.precommit.find_git_repositories")
     @patch("tools.precommit.get_git_status")
     @patch("tools.precommit.run_git_command")
-    @patch("tools.precommit.read_files")
     async def test_files_parameter_with_context(
         self,
-        mock_read_files,
         mock_run_git,
         mock_status,
         mock_find_repos,
@@ -254,14 +252,15 @@ class TestPrecommitTool:
             (True, ""),  # unstaged files list (empty)
         ]
 
-        # Mock read_files
-        mock_read_files.return_value = "=== FILE: config.py ===\nCONFIG_VALUE = 42\n=== END FILE ==="
+        # Mock the centralized file preparation method
+        with patch.object(tool, "_prepare_file_content_for_prompt") as mock_prepare_files:
+            mock_prepare_files.return_value = "=== FILE: config.py ===\nCONFIG_VALUE = 42\n=== END FILE ==="
 
-        request = PrecommitRequest(
-            path="/absolute/repo/path",
-            files=["/absolute/repo/path/config.py"],
-        )
-        result = await tool.prepare_prompt(request)
+            request = PrecommitRequest(
+                path="/absolute/repo/path",
+                files=["/absolute/repo/path/config.py"],
+            )
+            result = await tool.prepare_prompt(request)
 
         # Verify context files are included
         assert "## Context Files Summary" in result
@@ -316,9 +315,9 @@ class TestPrecommitTool:
             (True, ""),  # unstaged files (empty)
         ]
 
-        # Mock read_files to return empty (file not found)
-        with patch("tools.precommit.read_files") as mock_read:
-            mock_read.return_value = ""
+        # Mock the centralized file preparation method to return empty (file not found)
+        with patch.object(tool, "_prepare_file_content_for_prompt") as mock_prepare_files:
+            mock_prepare_files.return_value = ""
             result_with_files = await tool.prepare_prompt(request_with_files)
 
         assert "If you need additional context files" not in result_with_files
diff --git a/tests/test_precommit_with_mock_store.py b/tests/test_precommit_with_mock_store.py
new file mode 100644
index 0000000..4788ee4
--- /dev/null
+++ b/tests/test_precommit_with_mock_store.py
@@ -0,0 +1,269 @@
+"""
+Enhanced tests for precommit tool using mock storage to test real logic
+"""
+
+import os
+import tempfile
+from pathlib import Path
+from typing import Optional
+from unittest.mock import patch
+
+import pytest
+
+from tools.precommit import Precommit, PrecommitRequest
+
+
+class MockRedisClient:
+    """Mock Redis client that uses in-memory dictionary storage"""
+
+    def __init__(self):
+        self.data: dict[str, str] = {}
+        self.ttl_data: dict[str, int] = {}
+
+    def get(self, key: str) -> Optional[str]:
+        return self.data.get(key)
+
+    def set(self, key: str, value: str, ex: Optional[int] = None) -> bool:
+        self.data[key] = value
+        if ex:
+            self.ttl_data[key] = ex
+        return True
+
+    def delete(self, key: str) -> int:
+        if key in self.data:
+            del self.data[key]
+            self.ttl_data.pop(key, None)
+            return 1
+        return 0
+
+    def exists(self, key: str) -> int:
+        return 1 if key in self.data else 0
+
+    def setex(self, key: str, time: int, value: str) -> bool:
+        """Set key to hold string value and set key to timeout after given seconds"""
+        self.data[key] = value
+        self.ttl_data[key] = time
+        return True
+
+
+class TestPrecommitToolWithMockStore:
+    """Test precommit tool with mock storage to validate actual logic"""
+
+    @pytest.fixture
+    def mock_redis(self):
+        """Create mock Redis client"""
+        return MockRedisClient()
+
+    @pytest.fixture
+    def tool(self, mock_redis, temp_repo):
+        """Create tool instance with mocked Redis"""
+        temp_dir, _ = temp_repo
+        tool = Precommit()
+
+        # Mock the Redis client getter and PROJECT_ROOT to allow access to temp files
+        with (
+            patch("utils.conversation_memory.get_redis_client", return_value=mock_redis),
+            patch("utils.file_utils.PROJECT_ROOT", Path(temp_dir).resolve()),
+        ):
+            yield tool
+
+    @pytest.fixture
+    def temp_repo(self):
+        """Create a temporary git repository with test files"""
+        import subprocess
+
+        temp_dir = tempfile.mkdtemp()
+
+        # Initialize git repo
+        subprocess.run(["git", "init"], cwd=temp_dir, capture_output=True)
+        subprocess.run(["git", "config", "user.name", "Test"], cwd=temp_dir, capture_output=True)
+        subprocess.run(["git", "config", "user.email", "test@example.com"], cwd=temp_dir, capture_output=True)
+
+        # Create test config file
+        config_content = '''"""Test configuration file"""
+
+# Version and metadata
+__version__ = "1.0.0"
+__author__ = "Test"
+
+# Configuration
+MAX_CONTENT_TOKENS = 800_000  # 800K tokens for content
+TEMPERATURE_ANALYTICAL = 0.2  # For code review, debugging
+'''
+
+        config_path = os.path.join(temp_dir, "config.py")
+        with open(config_path, "w") as f:
+            f.write(config_content)
+
+        # Add and commit initial version
+        subprocess.run(["git", "add", "."], cwd=temp_dir, capture_output=True)
+        subprocess.run(["git", "commit", "-m", "Initial commit"], cwd=temp_dir, capture_output=True)
+
+        # Modify config to create a diff
+        modified_content = config_content + '\nNEW_SETTING = "test"  # Added setting\n'
+        with open(config_path, "w") as f:
+            f.write(modified_content)
+
+        yield temp_dir, config_path
+
+        # Cleanup
+        import shutil
+
+        shutil.rmtree(temp_dir)
+
+    @pytest.mark.asyncio
+    async def test_no_duplicate_file_content_in_prompt(self, tool, temp_repo, mock_redis):
+        """Test that file content appears in expected locations
+
+        This test validates our design decision that files can legitimately appear in both:
+        1. Git Diffs section: Shows only changed lines + limited context (wrapped with BEGIN DIFF markers)
+        2. Additional Context section: Shows complete file content (wrapped with BEGIN FILE markers)
+
+        This is intentional, not a bug - the AI needs both perspectives for comprehensive analysis.
+        """
+        temp_dir, config_path = temp_repo
+
+        # Create request with files parameter
+        request = PrecommitRequest(path=temp_dir, files=[config_path], original_request="Test configuration changes")
+
+        # Generate the prompt
+        prompt = await tool.prepare_prompt(request)
+
+        # Verify expected sections are present
+        assert "## Original Request" in prompt
+        assert "Test configuration changes" in prompt
+        assert "## Additional Context Files" in prompt
+        assert "## Git Diffs" in prompt
+
+        # Verify the file appears in the git diff
+        assert "config.py" in prompt
+        assert "NEW_SETTING" in prompt
+
+        # Note: Files can legitimately appear in both git diff AND additional context:
+        # - Git diff shows only changed lines + limited context
+        # - Additional context provides complete file content for full understanding
+        # This is intentional and provides comprehensive context to the AI
+
+    @pytest.mark.asyncio
+    async def test_conversation_memory_integration(self, tool, temp_repo, mock_redis):
+        """Test that conversation memory works with mock storage"""
+        temp_dir, config_path = temp_repo
+
+        # Mock conversation memory functions to use our mock redis
+        with patch("utils.conversation_memory.get_redis_client", return_value=mock_redis):
+            # First request - should embed file content
+            PrecommitRequest(path=temp_dir, files=[config_path], original_request="First review")
+
+            # Simulate conversation thread creation
+            from utils.conversation_memory import add_turn, create_thread
+
+            thread_id = create_thread("precommit", {"files": [config_path]})
+
+            # Test that file embedding works
+            files_to_embed = tool.filter_new_files([config_path], None)
+            assert config_path in files_to_embed, "New conversation should embed all files"
+
+            # Add a turn to the conversation
+            add_turn(thread_id, "assistant", "First response", files=[config_path], tool_name="precommit")
+
+            # Second request with continuation - should skip already embedded files
+            PrecommitRequest(
+                path=temp_dir, files=[config_path], continuation_id=thread_id, original_request="Follow-up review"
+            )
+
+            files_to_embed_2 = tool.filter_new_files([config_path], thread_id)
+            assert len(files_to_embed_2) == 0, "Continuation should skip already embedded files"
+
+    @pytest.mark.asyncio
+    async def test_prompt_structure_integrity(self, tool, temp_repo, mock_redis):
+        """Test that the prompt structure is well-formed and doesn't have content duplication"""
+        temp_dir, config_path = temp_repo
+
+        request = PrecommitRequest(
+            path=temp_dir,
+            files=[config_path],
+            original_request="Validate prompt structure",
+            review_type="full",
+            severity_filter="high",
+        )
+
+        prompt = await tool.prepare_prompt(request)
+
+        # Split prompt into sections
+        sections = {
+            "original_request": "## Original Request",
+            "review_parameters": "## Review Parameters",
+            "repo_summary": "## Repository Changes Summary",
+            "context_files_summary": "## Context Files Summary",
+            "git_diffs": "## Git Diffs",
+            "additional_context": "## Additional Context Files",
+            "review_instructions": "## Review Instructions",
+        }
+
+        section_indices = {}
+        for name, header in sections.items():
+            index = prompt.find(header)
+            if index != -1:
+                section_indices[name] = index
+
+        # Verify sections appear in logical order
+        assert section_indices["original_request"] < section_indices["review_parameters"]
+        assert section_indices["review_parameters"] < section_indices["repo_summary"]
+        assert section_indices["git_diffs"] < section_indices["additional_context"]
+        assert section_indices["additional_context"] < section_indices["review_instructions"]
+
+        # Test that file content only appears in Additional Context section
+        file_content_start = section_indices["additional_context"]
+        file_content_end = section_indices["review_instructions"]
+
+        file_section = prompt[file_content_start:file_content_end]
+        prompt[:file_content_start]
+        after_file_section = prompt[file_content_end:]
+
+        # File content should appear in the file section
+        assert "MAX_CONTENT_TOKENS = 800_000" in file_section
+        # Check that configuration content appears in the file section
+        assert "# Configuration" in file_section
+        # The complete file content should not appear in the review instructions
+        assert '__version__ = "1.0.0"' in file_section
+        assert '__version__ = "1.0.0"' not in after_file_section
+
+    @pytest.mark.asyncio
+    async def test_file_content_formatting(self, tool, temp_repo, mock_redis):
+        """Test that file content is properly formatted without duplication"""
+        temp_dir, config_path = temp_repo
+
+        # Test the centralized file preparation method directly
+        file_content = tool._prepare_file_content_for_prompt(
+            [config_path], None, "Test files", max_tokens=100000, reserve_tokens=1000  # No continuation
+        )
+
+        # Should contain file markers
+        assert "--- BEGIN FILE:" in file_content
+        assert "--- END FILE:" in file_content
+        assert "config.py" in file_content
+
+        # Should contain actual file content
+        assert "MAX_CONTENT_TOKENS = 800_000" in file_content
+        assert '__version__ = "1.0.0"' in file_content
+
+        # Content should appear only once
+        assert file_content.count("MAX_CONTENT_TOKENS = 800_000") == 1
+        assert file_content.count('__version__ = "1.0.0"') == 1
+
+
+def test_mock_redis_basic_operations():
+    """Test that our mock Redis implementation works correctly"""
+    mock_redis = MockRedisClient()
+
+    # Test basic operations
+    assert mock_redis.get("nonexistent") is None
+    assert mock_redis.exists("nonexistent") == 0
+
+    mock_redis.set("test_key", "test_value")
+    assert mock_redis.get("test_key") == "test_value"
+    assert mock_redis.exists("test_key") == 1
+
+    assert mock_redis.delete("test_key") == 1
+    assert mock_redis.get("test_key") is None
+    assert mock_redis.delete("test_key") == 0  # Already deleted
diff --git a/tests/test_prompt_regression.py b/tests/test_prompt_regression.py
index 857eae0..7788c53 100644
--- a/tests/test_prompt_regression.py
+++ b/tests/test_prompt_regression.py
@@ -67,16 +67,16 @@ class TestPromptRegression:
             mock_model.generate_content.return_value = mock_model_response()
             mock_create_model.return_value = mock_model
 
-            # Mock file reading
-            with patch("tools.chat.read_files") as mock_read_files:
-                mock_read_files.return_value = "File content here"
+            # Mock file reading through the centralized method
+            with patch.object(tool, "_prepare_file_content_for_prompt") as mock_prepare_files:
+                mock_prepare_files.return_value = "File content here"
 
                 result = await tool.execute({"prompt": "Analyze this code", "files": ["/path/to/file.py"]})
 
                 assert len(result) == 1
                 output = json.loads(result[0].text)
                 assert output["status"] == "success"
-                mock_read_files.assert_called_once_with(["/path/to/file.py"])
+                mock_prepare_files.assert_called_once_with(["/path/to/file.py"], None, "Context files")
 
     @pytest.mark.asyncio
     async def test_thinkdeep_normal_analysis(self, mock_model_response):
diff --git a/tools/analyze.py b/tools/analyze.py
index 520afc9..54d4193 100644
--- a/tools/analyze.py
+++ b/tools/analyze.py
@@ -42,6 +42,8 @@ class AnalyzeTool(BaseTool):
         )
 
     def get_input_schema(self) -> dict[str, Any]:
+        from config import DEFAULT_MODEL
+
         return {
             "type": "object",
             "properties": {
@@ -50,6 +52,10 @@ class AnalyzeTool(BaseTool):
                     "items": {"type": "string"},
                     "description": "Files or directories to analyze (must be absolute paths)",
                 },
+                "model": {
+                    "type": "string",
+                    "description": f"Model to use: 'pro' (Gemini 2.5 Pro with extended thinking) or 'flash' (Gemini 2.0 Flash - faster). Defaults to '{DEFAULT_MODEL}' if not specified.",
+                },
                 "question": {
                     "type": "string",
                     "description": "What to analyze or look for",
diff --git a/tools/base.py b/tools/base.py
index 29c78aa..3c66ed0 100644
--- a/tools/base.py
+++ b/tools/base.py
@@ -25,7 +25,7 @@ from google.genai import types
 from mcp.types import TextContent
 from pydantic import BaseModel, Field
 
-from config import GEMINI_MODEL, MAX_CONTEXT_TOKENS, MCP_PROMPT_SIZE_LIMIT
+from config import DEFAULT_MODEL, MAX_CONTEXT_TOKENS, MCP_PROMPT_SIZE_LIMIT
 from utils import check_token_limit
 from utils.conversation_memory import (
     MAX_CONVERSATION_TURNS,
@@ -50,7 +50,10 @@ class ToolRequest(BaseModel):
     these common fields.
     """
 
-    model: Optional[str] = Field(None, description="Model to use (defaults to Gemini 2.5 Pro)")
+    model: Optional[str] = Field(
+        None,
+        description=f"Model to use: 'pro' (Gemini 2.5 Pro with extended thinking) or 'flash' (Gemini 2.0 Flash - faster). Defaults to '{DEFAULT_MODEL}' if not specified.",
+    )
     temperature: Optional[float] = Field(None, description="Temperature for response (tool-specific defaults)")
     # Thinking mode controls how much computational budget the model uses for reasoning
     # Higher values allow for more complex reasoning but increase latency and cost
@@ -189,15 +192,18 @@ class BaseTool(ABC):
             # Thread not found, no files embedded
             return []
 
-        return get_conversation_file_list(thread_context)
+        embedded_files = get_conversation_file_list(thread_context)
+        logger.debug(f"[FILES] {self.name}: Found {len(embedded_files)} embedded files")
+        return embedded_files
 
     def filter_new_files(self, requested_files: list[str], continuation_id: Optional[str]) -> list[str]:
         """
         Filter out files that are already embedded in conversation history.
 
-        This method takes a list of requested files and removes any that have
-        already been embedded in the conversation history, preventing duplicate
-        file embeddings and optimizing token usage.
+        This method prevents duplicate file embeddings by filtering out files that have
+        already been embedded in the conversation history. This optimizes token usage
+        while ensuring tools still have logical access to all requested files through
+        conversation history references.
 
         Args:
             requested_files: List of files requested for current tool execution
@@ -206,19 +212,64 @@ class BaseTool(ABC):
         Returns:
             list[str]: List of files that need to be embedded (not already in history)
         """
+        logger.debug(f"[FILES] {self.name}: Filtering {len(requested_files)} requested files")
+
         if not continuation_id:
             # New conversation, all files are new
+            logger.debug(f"[FILES] {self.name}: New conversation, all {len(requested_files)} files are new")
             return requested_files
 
-        embedded_files = set(self.get_conversation_embedded_files(continuation_id))
+        try:
+            embedded_files = set(self.get_conversation_embedded_files(continuation_id))
+            logger.debug(f"[FILES] {self.name}: Found {len(embedded_files)} embedded files in conversation")
 
-        # Return only files that haven't been embedded yet
-        new_files = [f for f in requested_files if f not in embedded_files]
+            # Safety check: If no files are marked as embedded but we have a continuation_id,
+            # this might indicate an issue with conversation history. Be conservative.
+            if not embedded_files:
+                logger.debug(
+                    f"📁 {self.name} tool: No files found in conversation history for thread {continuation_id}"
+                )
+                logger.debug(
+                    f"[FILES] {self.name}: No embedded files found, returning all {len(requested_files)} requested files"
+                )
+                return requested_files
 
-        return new_files
+            # Return only files that haven't been embedded yet
+            new_files = [f for f in requested_files if f not in embedded_files]
+            logger.debug(
+                f"[FILES] {self.name}: After filtering: {len(new_files)} new files, {len(requested_files) - len(new_files)} already embedded"
+            )
+            logger.debug(f"[FILES] {self.name}: New files to embed: {new_files}")
+
+            # Log filtering results for debugging
+            if len(new_files) < len(requested_files):
+                skipped = [f for f in requested_files if f in embedded_files]
+                logger.debug(
+                    f"📁 {self.name} tool: Filtering {len(skipped)} files already in conversation history: {', '.join(skipped)}"
+                )
+                logger.debug(f"[FILES] {self.name}: Skipped (already embedded): {skipped}")
+
+            return new_files
+
+        except Exception as e:
+            # If there's any issue with conversation history lookup, be conservative
+            # and include all files rather than risk losing access to needed files
+            logger.warning(f"📁 {self.name} tool: Error checking conversation history for {continuation_id}: {e}")
+            logger.warning(f"📁 {self.name} tool: Including all requested files as fallback")
+            logger.debug(
+                f"[FILES] {self.name}: Exception in filter_new_files, returning all {len(requested_files)} files as fallback"
+            )
+            return requested_files
 
     def _prepare_file_content_for_prompt(
-        self, request_files: list[str], continuation_id: Optional[str], context_description: str = "New files"
+        self,
+        request_files: list[str],
+        continuation_id: Optional[str],
+        context_description: str = "New files",
+        max_tokens: Optional[int] = None,
+        reserve_tokens: int = 1_000,
+        remaining_budget: Optional[int] = None,
+        arguments: Optional[dict] = None,
     ) -> str:
         """
         Centralized file processing for tool prompts.
@@ -232,6 +283,10 @@ class BaseTool(ABC):
             request_files: List of files requested for current tool execution
             continuation_id: Thread continuation ID, or None for new conversations
             context_description: Description for token limit validation (e.g. "Code", "New files")
+            max_tokens: Maximum tokens to use (defaults to remaining budget or MAX_CONTENT_TOKENS)
+            reserve_tokens: Tokens to reserve for additional prompt content (default 1K)
+            remaining_budget: Remaining token budget after conversation history (from server.py)
+            arguments: Original tool arguments (used to extract _remaining_tokens if available)
 
         Returns:
             str: Formatted file content string ready for prompt inclusion
@@ -239,15 +294,40 @@ class BaseTool(ABC):
         if not request_files:
             return ""
 
+        # Extract remaining budget from arguments if available
+        if remaining_budget is None:
+            # Use provided arguments or fall back to stored arguments from execute()
+            args_to_use = arguments or getattr(self, "_current_arguments", {})
+            remaining_budget = args_to_use.get("_remaining_tokens")
+
+        # Use remaining budget if provided, otherwise fall back to max_tokens or default
+        if remaining_budget is not None:
+            effective_max_tokens = remaining_budget - reserve_tokens
+        elif max_tokens is not None:
+            effective_max_tokens = max_tokens - reserve_tokens
+        else:
+            from config import MAX_CONTENT_TOKENS
+
+            effective_max_tokens = MAX_CONTENT_TOKENS - reserve_tokens
+
+        # Ensure we have a reasonable minimum budget
+        effective_max_tokens = max(1000, effective_max_tokens)
+
         files_to_embed = self.filter_new_files(request_files, continuation_id)
+        logger.debug(f"[FILES] {self.name}: Will embed {len(files_to_embed)} files after filtering")
 
         content_parts = []
 
         # Read content of new files only
         if files_to_embed:
             logger.debug(f"📁 {self.name} tool embedding {len(files_to_embed)} new files: {', '.join(files_to_embed)}")
+            logger.debug(
+                f"[FILES] {self.name}: Starting file embedding with token budget {effective_max_tokens + reserve_tokens:,}"
+            )
             try:
-                file_content = read_files(files_to_embed)
+                file_content = read_files(
+                    files_to_embed, max_tokens=effective_max_tokens + reserve_tokens, reserve_tokens=reserve_tokens
+                )
                 self._validate_token_limit(file_content, context_description)
                 content_parts.append(file_content)
 
@@ -258,9 +338,13 @@ class BaseTool(ABC):
                 logger.debug(
                     f"📁 {self.name} tool successfully embedded {len(files_to_embed)} files ({content_tokens:,} tokens)"
                 )
+                logger.debug(f"[FILES] {self.name}: Successfully embedded files - {content_tokens:,} tokens used")
             except Exception as e:
                 logger.error(f"📁 {self.name} tool failed to embed files {files_to_embed}: {type(e).__name__}: {e}")
+                logger.debug(f"[FILES] {self.name}: File embedding failed - {type(e).__name__}: {e}")
                 raise
+        else:
+            logger.debug(f"[FILES] {self.name}: No files to embed after filtering")
 
         # Generate note about files already in conversation history
         if continuation_id and len(files_to_embed) < len(request_files):
@@ -270,6 +354,7 @@ class BaseTool(ABC):
                 logger.debug(
                     f"📁 {self.name} tool skipping {len(skipped_files)} files already in conversation history: {', '.join(skipped_files)}"
                 )
+                logger.debug(f"[FILES] {self.name}: Adding note about {len(skipped_files)} skipped files")
                 if content_parts:
                     content_parts.append("\n\n")
                 note_lines = [
@@ -279,8 +364,12 @@ class BaseTool(ABC):
                     "--- END NOTE ---",
                 ]
                 content_parts.append("\n".join(note_lines))
+            else:
+                logger.debug(f"[FILES] {self.name}: No skipped files to note")
 
-        return "".join(content_parts) if content_parts else ""
+        result = "".join(content_parts) if content_parts else ""
+        logger.debug(f"[FILES] {self.name}: _prepare_file_content_for_prompt returning {len(result)} chars")
+        return result
 
     def get_websearch_instruction(self, use_websearch: bool, tool_specific: Optional[str] = None) -> str:
         """
@@ -488,6 +577,9 @@ If any of these would strengthen your analysis, specify what Claude should searc
             List[TextContent]: Formatted response as MCP TextContent objects
         """
         try:
+            # Store arguments for access by helper methods (like _prepare_file_content_for_prompt)
+            self._current_arguments = arguments
+
             # Set up logger for this tool execution
             logger = logging.getLogger(f"tools.{self.name}")
             logger.info(f"Starting {self.name} tool execution with arguments: {list(arguments.keys())}")
@@ -536,7 +628,7 @@ If any of these would strengthen your analysis, specify what Claude should searc
                 # No need to rebuild it here - prompt already contains conversation history
 
             # Extract model configuration from request or use defaults
-            model_name = getattr(request, "model", None) or GEMINI_MODEL
+            model_name = getattr(request, "model", None) or DEFAULT_MODEL
             temperature = getattr(request, "temperature", None)
             if temperature is None:
                 temperature = self.get_default_temperature()
@@ -580,11 +672,29 @@ If any of these would strengthen your analysis, specify what Claude should searc
             # Catch all exceptions to prevent server crashes
             # Return error information in standardized format
             logger = logging.getLogger(f"tools.{self.name}")
-            logger.error(f"Error in {self.name} tool execution: {str(e)}", exc_info=True)
+            error_msg = str(e)
+
+            # Check if this is a 500 INTERNAL error that asks for retry
+            if "500 INTERNAL" in error_msg and "Please retry" in error_msg:
+                logger.warning(f"500 INTERNAL error in {self.name} - attempting retry")
+                try:
+                    # Single retry attempt
+                    model = self._get_model_wrapper(request)
+                    raw_response = await model.generate_content(prompt)
+                    response = raw_response.text
+
+                    # If successful, process normally
+                    return [TextContent(type="text", text=self._process_response(response, request).model_dump_json())]
+
+                except Exception as retry_e:
+                    logger.error(f"Retry failed for {self.name} tool: {str(retry_e)}")
+                    error_msg = f"Tool failed after retry: {str(retry_e)}"
+
+            logger.error(f"Error in {self.name} tool execution: {error_msg}", exc_info=True)
 
             error_output = ToolOutput(
                 status="error",
-                content=f"Error in {self.name}: {str(e)}",
+                content=f"Error in {self.name}: {error_msg}",
                 content_type="text",
             )
             return [TextContent(type="text", text=error_output.model_dump_json())]
@@ -811,18 +921,24 @@ If any of these would strengthen your analysis, specify what Claude should searc
         Returns:
             Dict with continuation data if opportunity should be offered, None otherwise
         """
-        # Only offer continuation for new conversations (not already threaded)
         continuation_id = getattr(request, "continuation_id", None)
-        if continuation_id:
-            # This is already a threaded conversation, don't offer continuation
-            # (either Gemini will ask follow-up or conversation naturally ends)
-            return None
 
-        # Only offer if we haven't reached conversation limits
         try:
-            # For new conversations, we have MAX_CONVERSATION_TURNS - 1 remaining
-            # (since this response will be turn 1)
-            remaining_turns = MAX_CONVERSATION_TURNS - 1
+            if continuation_id:
+                # Check remaining turns in existing thread
+                from utils.conversation_memory import get_thread
+
+                context = get_thread(continuation_id)
+                if context:
+                    current_turns = len(context.turns)
+                    remaining_turns = MAX_CONVERSATION_TURNS - current_turns - 1  # -1 for this response
+                else:
+                    # Thread not found, don't offer continuation
+                    return None
+            else:
+                # New conversation, we have MAX_CONVERSATION_TURNS - 1 remaining
+                # (since this response will be turn 1)
+                remaining_turns = MAX_CONVERSATION_TURNS - 1
 
             if remaining_turns <= 0:
                 return None
@@ -951,13 +1067,22 @@ If any of these would strengthen your analysis, specify what Claude should searc
         temperature and thinking budget configuration for models that support it.
 
         Args:
-            model_name: Name of the Gemini model to use
+            model_name: Name of the Gemini model to use (or shorthand like 'flash', 'pro')
             temperature: Temperature setting for response generation
             thinking_mode: Thinking depth mode (affects computational budget)
 
         Returns:
             Model instance configured and ready for generation
         """
+        # Define model shorthands for user convenience
+        model_shorthands = {
+            "pro": "gemini-2.5-pro-preview-06-05",
+            "flash": "gemini-2.0-flash-exp",
+        }
+
+        # Resolve shorthand to full model name
+        resolved_model_name = model_shorthands.get(model_name.lower(), model_name)
+
         # Map thinking modes to computational budget values
         # Higher budgets allow for more complex reasoning but increase latency
         thinking_budgets = {
@@ -972,7 +1097,7 @@ If any of these would strengthen your analysis, specify what Claude should searc
 
         # Gemini 2.5 models support thinking configuration for enhanced reasoning
         # Skip special handling in test environment to allow mocking
-        if "2.5" in model_name and not os.environ.get("PYTEST_CURRENT_TEST"):
+        if "2.5" in resolved_model_name and not os.environ.get("PYTEST_CURRENT_TEST"):
             try:
                 # Retrieve API key for Gemini client creation
                 api_key = os.environ.get("GEMINI_API_KEY")
@@ -1031,7 +1156,7 @@ If any of these would strengthen your analysis, specify what Claude should searc
 
                         return ResponseWrapper(response.text)
 
-                return ModelWrapper(client, model_name, temperature, thinking_budget)
+                return ModelWrapper(client, resolved_model_name, temperature, thinking_budget)
 
             except Exception:
                 # Fall back to regular API if thinking configuration fails
@@ -1084,4 +1209,4 @@ If any of these would strengthen your analysis, specify what Claude should searc
 
                 return ResponseWrapper(response.text)
 
-        return SimpleModelWrapper(client, model_name, temperature)
+        return SimpleModelWrapper(client, resolved_model_name, temperature)
diff --git a/tools/chat.py b/tools/chat.py
index 722bc38..9b12de0 100644
--- a/tools/chat.py
+++ b/tools/chat.py
@@ -9,7 +9,6 @@ from pydantic import Field
 
 from config import TEMPERATURE_BALANCED
 from prompts import CHAT_PROMPT
-from utils import read_files
 
 from .base import BaseTool, ToolRequest
 from .models import ToolOutput
@@ -45,6 +44,8 @@ class ChatTool(BaseTool):
         )
 
     def get_input_schema(self) -> dict[str, Any]:
+        from config import DEFAULT_MODEL
+
         return {
             "type": "object",
             "properties": {
@@ -57,6 +58,10 @@ class ChatTool(BaseTool):
                     "items": {"type": "string"},
                     "description": "Optional files for context (must be absolute paths)",
                 },
+                "model": {
+                    "type": "string",
+                    "description": f"Model to use: 'pro' (Gemini 2.5 Pro with extended thinking) or 'flash' (Gemini 2.0 Flash - faster). Defaults to '{DEFAULT_MODEL}' if not specified.",
+                },
                 "temperature": {
                     "type": "number",
                     "description": "Response creativity (0-1, default 0.5)",
@@ -116,10 +121,13 @@ class ChatTool(BaseTool):
         if updated_files is not None:
             request.files = updated_files
 
-        # Add context files if provided
+        # Add context files if provided (using centralized file handling with filtering)
         if request.files:
-            file_content = read_files(request.files)
-            user_content = f"{user_content}\n\n=== CONTEXT FILES ===\n{file_content}\n=== END CONTEXT ===="
+            file_content = self._prepare_file_content_for_prompt(
+                request.files, request.continuation_id, "Context files"
+            )
+            if file_content:
+                user_content = f"{user_content}\n\n=== CONTEXT FILES ===\n{file_content}\n=== END CONTEXT ===="
 
         # Check token limits
         self._validate_token_limit(user_content, "Content")
diff --git a/tools/codereview.py b/tools/codereview.py
index ec75e79..59512da 100644
--- a/tools/codereview.py
+++ b/tools/codereview.py
@@ -79,6 +79,8 @@ class CodeReviewTool(BaseTool):
         )
 
     def get_input_schema(self) -> dict[str, Any]:
+        from config import DEFAULT_MODEL
+
         return {
             "type": "object",
             "properties": {
@@ -87,6 +89,10 @@ class CodeReviewTool(BaseTool):
                     "items": {"type": "string"},
                     "description": "Code files or directories to review (must be absolute paths)",
                 },
+                "model": {
+                    "type": "string",
+                    "description": f"Model to use: 'pro' (Gemini 2.5 Pro with extended thinking) or 'flash' (Gemini 2.0 Flash - faster). Defaults to '{DEFAULT_MODEL}' if not specified.",
+                },
                 "context": {
                     "type": "string",
                     "description": "User's summary of what the code does, expected behavior, constraints, and review objectives",
diff --git a/tools/debug.py b/tools/debug.py
index 1350914..fd76980 100644
--- a/tools/debug.py
+++ b/tools/debug.py
@@ -50,6 +50,8 @@ class DebugIssueTool(BaseTool):
         )
 
     def get_input_schema(self) -> dict[str, Any]:
+        from config import DEFAULT_MODEL
+
         return {
             "type": "object",
             "properties": {
@@ -57,6 +59,10 @@ class DebugIssueTool(BaseTool):
                     "type": "string",
                     "description": "Error message, symptoms, or issue description",
                 },
+                "model": {
+                    "type": "string",
+                    "description": f"Model to use: 'pro' (Gemini 2.5 Pro with extended thinking) or 'flash' (Gemini 2.0 Flash - faster). Defaults to '{DEFAULT_MODEL}' if not specified.",
+                },
                 "error_context": {
                     "type": "string",
                     "description": "Stack trace, logs, or additional error context",
diff --git a/tools/precommit.py b/tools/precommit.py
index 3d1eb56..c5c280d 100644
--- a/tools/precommit.py
+++ b/tools/precommit.py
@@ -1,5 +1,11 @@
 """
 Tool for pre-commit validation of git changes across multiple repositories.
+
+Design Note - File Content in Multiple Sections:
+Files may legitimately appear in both "Git Diffs" and "Additional Context Files" sections:
+- Git Diffs: Shows changed lines + limited context (marked with "BEGIN DIFF" / "END DIFF")
+- Additional Context: Shows complete file content (marked with "BEGIN FILE" / "END FILE")
+This provides comprehensive context for AI analysis - not a duplication bug.
 """
 
 import os
@@ -10,7 +16,7 @@ from pydantic import Field
 
 from config import MAX_CONTEXT_TOKENS
 from prompts.tool_prompts import PRECOMMIT_PROMPT
-from utils.file_utils import read_files, translate_file_paths, translate_path_for_environment
+from utils.file_utils import translate_file_paths, translate_path_for_environment
 from utils.git_utils import find_git_repositories, get_git_status, run_git_command
 from utils.token_utils import estimate_tokens
 
@@ -92,7 +98,15 @@ class Precommit(BaseTool):
         )
 
     def get_input_schema(self) -> dict[str, Any]:
+        from config import DEFAULT_MODEL
+
         schema = self.get_request_model().model_json_schema()
+        # Ensure model parameter has enhanced description
+        if "properties" in schema and "model" in schema["properties"]:
+            schema["properties"]["model"] = {
+                "type": "string",
+                "description": f"Model to use: 'pro' (Gemini 2.5 Pro with extended thinking) or 'flash' (Gemini 2.0 Flash - faster). Defaults to '{DEFAULT_MODEL}' if not specified.",
+            }
         # Ensure use_websearch is in the schema with proper description
         if "properties" in schema and "use_websearch" not in schema["properties"]:
             schema["properties"]["use_websearch"] = {
@@ -239,9 +253,12 @@ class Precommit(BaseTool):
                         staged_files = [f for f in files_output.strip().split("\n") if f]
 
                         # Generate per-file diffs for staged changes
+                        # Each diff is wrapped with clear markers to distinguish from full file content
                         for file_path in staged_files:
                             success, diff = run_git_command(repo_path, ["diff", "--cached", "--", file_path])
                             if success and diff.strip():
+                                # Use "BEGIN DIFF" markers (distinct from "BEGIN FILE" markers in utils/file_utils.py)
+                                # This allows AI to distinguish between diff context vs complete file content
                                 diff_header = f"\n--- BEGIN DIFF: {repo_name} / {file_path} (staged) ---\n"
                                 diff_footer = f"\n--- END DIFF: {repo_name} / {file_path} ---\n"
                                 formatted_diff = diff_header + diff + diff_footer
@@ -258,6 +275,7 @@ class Precommit(BaseTool):
                         unstaged_files = [f for f in files_output.strip().split("\n") if f]
 
                         # Generate per-file diffs for unstaged changes
+                        # Same clear marker pattern as staged changes above
                         for file_path in unstaged_files:
                             success, diff = run_git_command(repo_path, ["diff", "--", file_path])
                             if success and diff.strip():
@@ -298,10 +316,12 @@ class Precommit(BaseTool):
         if translated_files:
             remaining_tokens = max_tokens - total_tokens
 
-            # Use standardized file reading with token budget
-            file_content = read_files(
+            # Use centralized file handling with filtering for duplicate prevention
+            file_content = self._prepare_file_content_for_prompt(
                 translated_files,
-                max_tokens=remaining_tokens,
+                request.continuation_id,
+                "Context files",
+                max_tokens=remaining_tokens + 1000,  # Add back the reserve that was calculated
                 reserve_tokens=1000,  # Small reserve for formatting
             )
 
@@ -370,7 +390,8 @@ class Precommit(BaseTool):
         if total_tokens > 0:
             prompt_parts.append(f"\nTotal context tokens used: ~{total_tokens:,}")
 
-        # Add the diff contents
+        # Add the diff contents with clear section markers
+        # Each diff is wrapped with "--- BEGIN DIFF: ... ---" and "--- END DIFF: ... ---"
         prompt_parts.append("\n## Git Diffs\n")
         if all_diffs:
             prompt_parts.extend(all_diffs)
@@ -378,6 +399,11 @@ class Precommit(BaseTool):
             prompt_parts.append("--- NO DIFFS FOUND ---")
 
         # Add context files content if provided
+        # IMPORTANT: Files may legitimately appear in BOTH sections:
+        # - Git Diffs: Show only changed lines + limited context (what changed)
+        # - Additional Context: Show complete file content (full understanding)
+        # This is intentional design for comprehensive AI analysis, not duplication bug.
+        # Each file in this section is wrapped with "--- BEGIN FILE: ... ---" and "--- END FILE: ... ---"
         if context_files_content:
             prompt_parts.append("\n## Additional Context Files")
             prompt_parts.append(
diff --git a/tools/thinkdeep.py b/tools/thinkdeep.py
index e7d4b3b..e15ded4 100644
--- a/tools/thinkdeep.py
+++ b/tools/thinkdeep.py
@@ -48,6 +48,8 @@ class ThinkDeepTool(BaseTool):
         )
 
     def get_input_schema(self) -> dict[str, Any]:
+        from config import DEFAULT_MODEL
+
         return {
             "type": "object",
             "properties": {
@@ -55,6 +57,10 @@ class ThinkDeepTool(BaseTool):
                     "type": "string",
                     "description": "Your current thinking/analysis to extend and validate",
                 },
+                "model": {
+                    "type": "string",
+                    "description": f"Model to use: 'pro' (Gemini 2.5 Pro with extended thinking) or 'flash' (Gemini 2.0 Flash - faster). Defaults to '{DEFAULT_MODEL}' if not specified.",
+                },
                 "problem_context": {
                     "type": "string",
                     "description": "Additional context about the problem or goal",
@@ -78,8 +84,7 @@ class ThinkDeepTool(BaseTool):
                 "thinking_mode": {
                     "type": "string",
                     "enum": ["minimal", "low", "medium", "high", "max"],
-                    "description": "Thinking depth: minimal (128), low (2048), medium (8192), high (16384), max (32768)",
-                    "default": "high",
+                    "description": f"Thinking depth: minimal (128), low (2048), medium (8192), high (16384), max (32768). Defaults to '{self.get_default_thinking_mode()}' if not specified.",
                 },
                 "use_websearch": {
                     "type": "boolean",
@@ -101,8 +106,10 @@ class ThinkDeepTool(BaseTool):
         return TEMPERATURE_CREATIVE
 
     def get_default_thinking_mode(self) -> str:
-        """ThinkDeep uses high thinking by default"""
-        return "high"
+        """ThinkDeep uses configurable thinking mode, defaults to high"""
+        from config import DEFAULT_THINKING_MODE_THINKDEEP
+
+        return DEFAULT_THINKING_MODE_THINKDEEP
 
     def get_request_model(self):
         return ThinkDeepRequest
diff --git a/utils/conversation_memory.py b/utils/conversation_memory.py
index c21f40b..7b5388b 100644
--- a/utils/conversation_memory.py
+++ b/utils/conversation_memory.py
@@ -250,12 +250,16 @@ def add_turn(
         - Turn limits prevent runaway conversations
         - File references are preserved for cross-tool access
     """
+    logger.debug(f"[FLOW] Adding {role} turn to {thread_id} ({tool_name})")
+
     context = get_thread(thread_id)
     if not context:
+        logger.debug(f"[FLOW] Thread {thread_id} not found for turn addition")
         return False
 
     # Check turn limit to prevent runaway conversations
     if len(context.turns) >= MAX_CONVERSATION_TURNS:
+        logger.debug(f"[FLOW] Thread {thread_id} at max turns ({MAX_CONVERSATION_TURNS})")
         return False
 
     # Create new turn with complete metadata
@@ -277,7 +281,8 @@ def add_turn(
         key = f"thread:{thread_id}"
         client.setex(key, 3600, context.model_dump_json())  # Refresh TTL to 1 hour
         return True
-    except Exception:
+    except Exception as e:
+        logger.debug(f"[FLOW] Failed to save turn to Redis: {type(e).__name__}")
         return False
 
 
@@ -296,23 +301,33 @@ def get_conversation_file_list(context: ThreadContext) -> list[str]:
         list[str]: Deduplicated list of file paths referenced in the conversation
     """
     if not context.turns:
+        logger.debug("[FILES] No turns found, returning empty file list")
         return []
 
     # Collect all unique files from all turns, preserving order of first appearance
     seen_files = set()
     unique_files = []
 
-    for turn in context.turns:
+    logger.debug(f"[FILES] Collecting files from {len(context.turns)} turns")
+
+    for i, turn in enumerate(context.turns):
         if turn.files:
+            logger.debug(f"[FILES] Turn {i+1} has {len(turn.files)} files: {turn.files}")
             for file_path in turn.files:
                 if file_path not in seen_files:
                     seen_files.add(file_path)
                     unique_files.append(file_path)
+                    logger.debug(f"[FILES] Added new file: {file_path}")
+                else:
+                    logger.debug(f"[FILES] Duplicate file skipped: {file_path}")
+        else:
+            logger.debug(f"[FILES] Turn {i+1} has no files")
 
+    logger.debug(f"[FILES] Final unique file list ({len(unique_files)}): {unique_files}")
     return unique_files
 
 
-def build_conversation_history(context: ThreadContext, read_files_func=None) -> str:
+def build_conversation_history(context: ThreadContext, read_files_func=None) -> tuple[str, int]:
     """
     Build formatted conversation history for tool prompts with embedded file contents.
 
@@ -325,8 +340,8 @@ def build_conversation_history(context: ThreadContext, read_files_func=None) ->
         context: ThreadContext containing the complete conversation
 
     Returns:
-        str: Formatted conversation history with embedded files ready for inclusion in prompts
-        Empty string if no conversation turns exist
+        tuple[str, int]: (formatted_conversation_history, total_tokens_used)
+        Returns ("", 0) if no conversation turns exist
 
     Format:
         - Header with thread metadata and turn count
@@ -341,10 +356,11 @@ def build_conversation_history(context: ThreadContext, read_files_func=None) ->
         while preventing duplicate file embeddings.
     """
     if not context.turns:
-        return ""
+        return "", 0
 
     # Get all unique files referenced in this conversation
     all_files = get_conversation_file_list(context)
+    logger.debug(f"[FILES] Found {len(all_files)} unique files in conversation history")
 
     history_parts = [
         "=== CONVERSATION HISTORY ===",
@@ -356,6 +372,7 @@ def build_conversation_history(context: ThreadContext, read_files_func=None) ->
 
     # Embed all files referenced in this conversation once at the start
     if all_files:
+        logger.debug(f"[FILES] Starting embedding for {len(all_files)} files")
         history_parts.extend(
             [
                 "=== FILES REFERENCED IN THIS CONVERSATION ===",
@@ -366,7 +383,7 @@ def build_conversation_history(context: ThreadContext, read_files_func=None) ->
         )
 
         # Import required functions
-        from config import MAX_CONTEXT_TOKENS
+        from config import MAX_CONTENT_TOKENS
 
         if read_files_func is None:
             from utils.file_utils import read_file_content
@@ -379,32 +396,41 @@ def build_conversation_history(context: ThreadContext, read_files_func=None) ->
 
             for file_path in all_files:
                 try:
+                    logger.debug(f"[FILES] Processing file {file_path}")
                     # Correctly unpack the tuple returned by read_file_content
                     formatted_content, content_tokens = read_file_content(file_path)
                     if formatted_content:
                         # read_file_content already returns formatted content, use it directly
                         # Check if adding this file would exceed the limit
-                        if total_tokens + content_tokens <= MAX_CONTEXT_TOKENS:
+                        if total_tokens + content_tokens <= MAX_CONTENT_TOKENS:
                             file_contents.append(formatted_content)
                             total_tokens += content_tokens
                             files_included += 1
                             logger.debug(
                                 f"📄 File embedded in conversation history: {file_path} ({content_tokens:,} tokens)"
                             )
+                            logger.debug(
+                                f"[FILES] Successfully embedded {file_path} - {content_tokens:,} tokens (total: {total_tokens:,})"
+                            )
                         else:
                             files_truncated += 1
                             logger.debug(
-                                f"📄 File truncated due to token limit: {file_path} ({content_tokens:,} tokens, would exceed {MAX_CONTEXT_TOKENS:,} limit)"
+                                f"📄 File truncated due to token limit: {file_path} ({content_tokens:,} tokens, would exceed {MAX_CONTENT_TOKENS:,} limit)"
+                            )
+                            logger.debug(
+                                f"[FILES] File {file_path} would exceed token limit - skipping (would be {total_tokens + content_tokens:,} tokens)"
                             )
                             # Stop processing more files
                             break
                     else:
                         logger.debug(f"📄 File skipped (empty content): {file_path}")
+                        logger.debug(f"[FILES] File {file_path} has empty content - skipping")
                 except Exception as e:
                     # Skip files that can't be read but log the failure
                     logger.warning(
                         f"📄 Failed to embed file in conversation history: {file_path} - {type(e).__name__}: {e}"
                     )
+                    logger.debug(f"[FILES] Failed to read file {file_path} - {type(e).__name__}: {e}")
                     continue
 
             if file_contents:
@@ -417,11 +443,15 @@ def build_conversation_history(context: ThreadContext, read_files_func=None) ->
                 logger.debug(
                     f"📄 Conversation history file embedding complete: {files_included} files embedded, {files_truncated} truncated, {total_tokens:,} total tokens"
                 )
+                logger.debug(
+                    f"[FILES] File embedding summary - {files_included} embedded, {files_truncated} truncated, {total_tokens:,} tokens total"
+                )
             else:
                 history_parts.append("(No accessible files found)")
                 logger.debug(
                     f"📄 Conversation history file embedding: no accessible files found from {len(all_files)} requested"
                 )
+                logger.debug(f"[FILES] No accessible files found from {len(all_files)} requested files")
         else:
             # Fallback to original read_files function for backward compatibility
             files_content = read_files_func(all_files)
@@ -434,7 +464,7 @@ def build_conversation_history(context: ThreadContext, read_files_func=None) ->
                     history_parts.append(files_content)
                 else:
                     # Handle token limit exceeded for conversation files
-                    error_message = f"ERROR: The total size of files referenced in this conversation has exceeded the context limit and cannot be displayed.\nEstimated tokens: {estimated_tokens}, but limit is {MAX_CONTEXT_TOKENS}."
+                    error_message = f"ERROR: The total size of files referenced in this conversation has exceeded the context limit and cannot be displayed.\nEstimated tokens: {estimated_tokens}, but limit is {MAX_CONTENT_TOKENS}."
                     history_parts.append(error_message)
             else:
                 history_parts.append("(No accessible files found)")
@@ -476,7 +506,20 @@ def build_conversation_history(context: ThreadContext, read_files_func=None) ->
         ["", "=== END CONVERSATION HISTORY ===", "", "Continue this conversation by building on the previous context."]
     )
 
-    return "\n".join(history_parts)
+    # Calculate total tokens for the complete conversation history
+    complete_history = "\n".join(history_parts)
+    from utils.token_utils import estimate_tokens
+
+    total_conversation_tokens = estimate_tokens(complete_history)
+
+    # Summary log of what was built
+    user_turns = len([t for t in context.turns if t.role == "user"])
+    assistant_turns = len([t for t in context.turns if t.role == "assistant"])
+    logger.debug(
+        f"[FLOW] Built conversation history: {user_turns} user + {assistant_turns} assistant turns, {len(all_files)} files, {total_conversation_tokens:,} tokens"
+    )
+
+    return complete_history, total_conversation_tokens
 
 
 def _is_valid_uuid(val: str) -> bool:
diff --git a/utils/file_utils.py b/utils/file_utils.py
index 4bc7928..8d986c4 100644
--- a/utils/file_utils.py
+++ b/utils/file_utils.py
@@ -422,11 +422,14 @@ def read_file_content(file_path: str, max_size: int = 1_000_000) -> tuple[str, i
         Tuple of (formatted_content, estimated_tokens)
         Content is wrapped with clear delimiters for AI parsing
     """
+    logger.debug(f"[FILES] read_file_content called for: {file_path}")
     try:
         # Validate path security before any file operations
         path = resolve_and_validate_path(file_path)
+        logger.debug(f"[FILES] Path validated and resolved: {path}")
     except (ValueError, PermissionError) as e:
         # Return error in a format that provides context to the AI
+        logger.debug(f"[FILES] Path validation failed for {file_path}: {type(e).__name__}: {e}")
         error_msg = str(e)
         # Add Docker-specific help if we're in Docker and path is inaccessible
         if WORKSPACE_ROOT and CONTAINER_WORKSPACE.exists():
@@ -438,37 +441,54 @@ def read_file_content(file_path: str, max_size: int = 1_000_000) -> tuple[str, i
                 f"To access files in a different directory, please run Claude from that directory."
             )
         content = f"\n--- ERROR ACCESSING FILE: {file_path} ---\nError: {error_msg}\n--- END FILE ---\n"
-        return content, estimate_tokens(content)
+        tokens = estimate_tokens(content)
+        logger.debug(f"[FILES] Returning error content for {file_path}: {tokens} tokens")
+        return content, tokens
 
     try:
         # Validate file existence and type
         if not path.exists():
+            logger.debug(f"[FILES] File does not exist: {file_path}")
             content = f"\n--- FILE NOT FOUND: {file_path} ---\nError: File does not exist\n--- END FILE ---\n"
             return content, estimate_tokens(content)
 
         if not path.is_file():
+            logger.debug(f"[FILES] Path is not a file: {file_path}")
             content = f"\n--- NOT A FILE: {file_path} ---\nError: Path is not a file\n--- END FILE ---\n"
             return content, estimate_tokens(content)
 
         # Check file size to prevent memory exhaustion
         file_size = path.stat().st_size
+        logger.debug(f"[FILES] File size for {file_path}: {file_size:,} bytes")
         if file_size > max_size:
+            logger.debug(f"[FILES] File too large: {file_path} ({file_size:,} > {max_size:,} bytes)")
             content = f"\n--- FILE TOO LARGE: {file_path} ---\nFile size: {file_size:,} bytes (max: {max_size:,})\n--- END FILE ---\n"
             return content, estimate_tokens(content)
 
         # Read the file with UTF-8 encoding, replacing invalid characters
         # This ensures we can handle files with mixed encodings
+        logger.debug(f"[FILES] Reading file content for {file_path}")
         with open(path, encoding="utf-8", errors="replace") as f:
             file_content = f.read()
 
+        logger.debug(f"[FILES] Successfully read {len(file_content)} characters from {file_path}")
+
         # Format with clear delimiters that help the AI understand file boundaries
         # Using consistent markers makes it easier for the model to parse
+        # NOTE: These markers ("--- BEGIN FILE: ... ---") are distinct from git diff markers
+        # ("--- BEGIN DIFF: ... ---") to allow AI to distinguish between complete file content
+        # vs. partial diff content when files appear in both sections
         formatted = f"\n--- BEGIN FILE: {file_path} ---\n{file_content}\n--- END FILE: {file_path} ---\n"
-        return formatted, estimate_tokens(formatted)
+        tokens = estimate_tokens(formatted)
+        logger.debug(f"[FILES] Formatted content for {file_path}: {len(formatted)} chars, {tokens} tokens")
+        return formatted, tokens
 
     except Exception as e:
+        logger.debug(f"[FILES] Exception reading file {file_path}: {type(e).__name__}: {e}")
         content = f"\n--- ERROR READING FILE: {file_path} ---\nError: {str(e)}\n--- END FILE ---\n"
-        return content, estimate_tokens(content)
+        tokens = estimate_tokens(content)
+        logger.debug(f"[FILES] Returning error content for {file_path}: {tokens} tokens")
+        return content, tokens
 
 
 def read_files(
@@ -497,6 +517,11 @@ def read_files(
     if max_tokens is None:
         max_tokens = MAX_CONTEXT_TOKENS
 
+    logger.debug(f"[FILES] read_files called with {len(file_paths)} paths")
+    logger.debug(
+        f"[FILES] Token budget: max={max_tokens:,}, reserve={reserve_tokens:,}, available={max_tokens - reserve_tokens:,}"
+    )
+
     content_parts = []
     total_tokens = 0
     available_tokens = max_tokens - reserve_tokens
@@ -517,31 +542,42 @@ def read_files(
     # Priority 2: Process file paths
     if file_paths:
         # Expand directories to get all individual files
+        logger.debug(f"[FILES] Expanding {len(file_paths)} file paths")
         all_files = expand_paths(file_paths)
+        logger.debug(f"[FILES] After expansion: {len(all_files)} individual files")
 
         if not all_files and file_paths:
             # No files found but paths were provided
+            logger.debug("[FILES] No files found from provided paths")
             content_parts.append(f"\n--- NO FILES FOUND ---\nProvided paths: {', '.join(file_paths)}\n--- END ---\n")
         else:
             # Read files sequentially until token limit is reached
-            for file_path in all_files:
+            logger.debug(f"[FILES] Reading {len(all_files)} files with token budget {available_tokens:,}")
+            for i, file_path in enumerate(all_files):
                 if total_tokens >= available_tokens:
-                    files_skipped.append(file_path)
-                    continue
+                    logger.debug(f"[FILES] Token budget exhausted, skipping remaining {len(all_files) - i} files")
+                    files_skipped.extend(all_files[i:])
+                    break
 
                 file_content, file_tokens = read_file_content(file_path)
+                logger.debug(f"[FILES] File {file_path}: {file_tokens:,} tokens")
 
                 # Check if adding this file would exceed limit
                 if total_tokens + file_tokens <= available_tokens:
                     content_parts.append(file_content)
                     total_tokens += file_tokens
+                    logger.debug(f"[FILES] Added file {file_path}, total tokens: {total_tokens:,}")
                 else:
                     # File too large for remaining budget
+                    logger.debug(
+                        f"[FILES] File {file_path} too large for remaining budget ({file_tokens:,} tokens, {available_tokens - total_tokens:,} remaining)"
+                    )
                     files_skipped.append(file_path)
 
     # Add informative note about skipped files to help users understand
     # what was omitted and why
     if files_skipped:
+        logger.debug(f"[FILES] {len(files_skipped)} files skipped due to token limits")
         skip_note = "\n\n--- SKIPPED FILES (TOKEN LIMIT) ---\n"
         skip_note += f"Total skipped: {len(files_skipped)}\n"
         # Show first 10 skipped files as examples
@@ -552,4 +588,6 @@ def read_files(
         skip_note += "--- END SKIPPED FILES ---\n"
         content_parts.append(skip_note)
 
-    return "\n\n".join(content_parts) if content_parts else ""
+    result = "\n\n".join(content_parts) if content_parts else ""
+    logger.debug(f"[FILES] read_files complete: {len(result)} chars, {total_tokens:,} tokens used")
+    return result