diff --git a/docs/specs/agent-plugins.md b/docs/specs/agent-plugins.md
index 051a82ed9..b2543bc16 100644
--- a/docs/specs/agent-plugins.md
+++ b/docs/specs/agent-plugins.md
@@ -4,12 +4,14 @@ Last verified: 2026-08-07 against [Agent Plugins v1.0.0](https://agent-plugins.o
 
 ## What this repo does
 
-Root `plugin.json` targets the Agent Plugins 1.0.0 manifest schema:
+Root `plugin.json` follows the Agent Plugins 1.0.0 manifest authoring rules (field set and shapes) but **currently omits the `$schema` field**:
 
 ```text
 https://agent-plugins.org/schemas/1.0.0/plugin.schema.json
 ```
 
+**Why `$schema` is withheld (#1412):** Codex >= 0.147 ([openai/codex#37027](https://github.com/openai/codex/pull/37027)) treats a root `plugin.json` whose `$schema` starts with `https://agent-plugins.org/schemas/` as an Agent Plugin, and for Agent Plugin skills injects only the first `MAX_SKILL_PROMPT_BYTES` (8000) of each `SKILL.md` into the model-visible prompt, silently dropping the rest. Legacy manifests (`.codex-plugin/plugin.json`) are exempt. Most bundled skills exceed 8000 bytes, so shipping the `$schema` truncates them on Codex. `tests/codex-skill-prompt-budget.test.ts` pins this: it forbids the `$schema` while any skill is over budget, and holds a shrink-only allowlist of over-budget skills (CRLF-adjusted, since Windows checkouts inflate the byte count). Restore the `$schema` only once that allowlist is empty.
+
 Layout already matches the portable package shape: root manifest + `skills/<name>/SKILL.md`. No `mcp.json` (valid — MCP is optional).
 
 CI pins authoring rules in `tests/release-metadata.test.ts` (schema const, name pattern, closed field set, field shapes). Rules are pinned locally; tests never fetch the schema at runtime.
@@ -44,6 +46,8 @@ Agent Plugins discovers skills via the [Agent Skills](https://agentskills.io/spe
 
 ## Re-verify when
 
+- Every `SKILL.md` fits Codex's 8000-byte prompt bound (then restore `$schema`)
+- Codex changes `MAX_SKILL_PROMPT_BYTES` or applies it to legacy/host skills ([openai/codex#37463](https://github.com/openai/codex/issues/37463))
 - Agent Plugins leaves Working Draft / publishes a new schema version
 - Adding top-level fields to root `plugin.json`
 - A concrete Agent Plugins client is observed to skip or reject skills with Claude-only frontmatter
diff --git a/plugin.json b/plugin.json
index 5cde85db7..7f5f7a443 100644
--- a/plugin.json
+++ b/plugin.json
@@ -1,5 +1,4 @@
 {
-  "$schema": "https://agent-plugins.org/schemas/1.0.0/plugin.schema.json",
   "name": "compound-engineering",
   "version": "3.22.2",
   "description": "Brainstorm, plan, debug, review, and compound learnings with AI agents",
diff --git a/tests/codex-skill-prompt-budget.test.ts b/tests/codex-skill-prompt-budget.test.ts
new file mode 100644
index 000000000..526423147
--- /dev/null
+++ b/tests/codex-skill-prompt-budget.test.ts
@@ -0,0 +1,107 @@
+import { describe, expect, test } from "bun:test"
+import { readdirSync, readFileSync, statSync } from "node:fs"
+import path from "node:path"
+
+/**
+ * Codex >= 0.147 (openai/codex#37027) classifies a plugin as an Agent Plugin when the
+ * root `plugin.json` carries an `https://agent-plugins.org/schemas/...` `$schema`, and
+ * then injects only the first MAX_SKILL_PROMPT_BYTES (8000) of each SKILL.md into the
+ * model-visible prompt (#1412). Legacy manifests (`.codex-plugin/plugin.json`) are exempt.
+ *
+ * Until every skill entrypoint fits, the root manifest must not carry that `$schema`,
+ * and no skill may newly cross the bound. Shrink OVER_BUDGET as skills are restructured;
+ * when it is empty, the `$schema` may return.
+ */
+const CODEX_MAX_SKILL_PROMPT_BYTES = 8_000
+const AGENT_PLUGINS_SCHEMA_PREFIX = "https://agent-plugins.org/schemas/"
+
+/**
+ * Skills known to exceed the bound. Membership is a set on purpose: an over-budget skill is
+ * already truncated on Codex, so its exact size is not pinned and ordinary edits do not churn
+ * this list. Remove a name once its SKILL.md fits; never add one for a new skill.
+ */
+const OVER_BUDGET = new Set([
+  "ce-babysit-pr",
+  "ce-brainstorm",
+  "ce-code-review",
+  "ce-commit-push-pr",
+  "ce-compound",
+  "ce-compound-refresh",
+  "ce-debug",
+  "ce-doc-review",
+  "ce-dogfood",
+  "ce-explain",
+  "ce-handoff",
+  "ce-ideate",
+  "ce-optimize",
+  "ce-plan",
+  "ce-pov",
+  "ce-product-pulse",
+  "ce-proof",
+  "ce-prototype",
+  "ce-resolve-pr-feedback",
+  "ce-retune",
+  "ce-setup",
+  "ce-strategy",
+  "ce-sweep",
+  "ce-test-browser",
+  "ce-work",
+  "lfg",
+])
+
+const repoRoot = path.join(import.meta.dir, "..")
+const skillsDir = path.join(repoRoot, "skills")
+
+/** Byte size as a Windows checkout with CRLF line endings would inject it. */
+function crlfByteSize(contents: string): number {
+  const lf = contents.replace(/\r\n/g, "\n")
+  return Buffer.byteLength(lf, "utf8") + (lf.match(/\n/g)?.length ?? 0)
+}
+
+function skillSizes(): Map<string, number> {
+  const sizes = new Map<string, number>()
+  for (const name of readdirSync(skillsDir)) {
+    const file = path.join(skillsDir, name, "SKILL.md")
+    if (!statSync(path.join(skillsDir, name)).isDirectory()) continue
+    try {
+      sizes.set(name, crlfByteSize(readFileSync(file, "utf8")))
+    } catch {
+      // no SKILL.md; other tests own that invariant
+    }
+  }
+  return sizes
+}
+
+describe("Codex skill prompt budget (#1412)", () => {
+  const sizes = skillSizes()
+
+  test("no skill newly exceeds Codex's 8000-byte prompt bound (CRLF-adjusted)", () => {
+    const violations: string[] = []
+    for (const [name, size] of sizes) {
+      if (size > CODEX_MAX_SKILL_PROMPT_BYTES && !OVER_BUDGET.has(name)) {
+        violations.push(`${name}: ${size} bytes > ${CODEX_MAX_SKILL_PROMPT_BYTES}`)
+      }
+    }
+    expect(violations).toEqual([])
+  })
+
+  test("OVER_BUDGET only lists skills that still exceed the bound (ratchet down)", () => {
+    const stale = [...OVER_BUDGET].filter(
+      (name) => (sizes.get(name) ?? 0) <= CODEX_MAX_SKILL_PROMPT_BYTES,
+    )
+    expect(stale).toEqual([])
+  })
+
+  test("root plugin.json omits the Agent Plugins $schema while any skill is over budget", () => {
+    const manifest = JSON.parse(
+      readFileSync(path.join(repoRoot, "plugin.json"), "utf8"),
+    ) as Record<string, unknown>
+    const schema = typeof manifest.$schema === "string" ? manifest.$schema : ""
+    const anyOverBudget = [...sizes.values()].some(
+      (size) => size > CODEX_MAX_SKILL_PROMPT_BYTES,
+    )
+    if (anyOverBudget) {
+      expect(schema.startsWith(AGENT_PLUGINS_SCHEMA_PREFIX)).toBe(false)
+    }
+  })
+})
diff --git a/tests/release-metadata.test.ts b/tests/release-metadata.test.ts
index 9a5530b13..391baacf0 100644
--- a/tests/release-metadata.test.ts
+++ b/tests/release-metadata.test.ts
@@ -937,8 +937,10 @@ const AGENT_PLUGINS_STRING_FIELDS = [
 function agentPluginsManifestErrors(manifest: Record<string, unknown>): string[] {
   const errors: string[] = []
 
-  if (manifest.$schema !== AGENT_PLUGINS_SCHEMA) {
-    errors.push(`$schema must be ${AGENT_PLUGINS_SCHEMA}`)
+  // $schema is deliberately absent while any SKILL.md exceeds Codex's 8000-byte
+  // Agent Plugin prompt bound (see tests/codex-skill-prompt-budget.test.ts, #1412).
+  if (manifest.$schema !== undefined && manifest.$schema !== AGENT_PLUGINS_SCHEMA) {
+    errors.push(`$schema must be ${AGENT_PLUGINS_SCHEMA} when present`)
   }
 
   if (typeof manifest.name !== "string") {