diff --git a/crates/g3-cli/src/lib.rs b/crates/g3-cli/src/lib.rs
index 10251d4..d68083a 100644
--- a/crates/g3-cli/src/lib.rs
+++ b/crates/g3-cli/src/lib.rs
@@ -768,6 +768,8 @@ async fn run_agent_mode(
     
     // Create agent with custom system prompt
     let ui_writer = ConsoleUiWriter::new();
+    // Set agent mode on UI writer for visual differentiation (royal blue tool names)
+    ui_writer.set_agent_mode(true);
     let mut agent = Agent::new_with_custom_prompt(
         config,
         ui_writer,
@@ -1407,11 +1409,20 @@ fn read_project_readme(workspace_dir: &Path) -> Option<String> {
 
 /// Extract the main heading or title from README content
 fn extract_readme_heading(readme_content: &str) -> Option<String> {
-    // Process the content line by line, skipping the prefix line if present
-    let lines_iter = readme_content.lines();
-    let mut content_lines = Vec::new();
+    // Find the README section in the combined content
+    // The README section starts with "📚 Project README (from"
+    let readme_start = readme_content.find("📚 Project README (from");
 
-    for line in lines_iter {
+    // If we can't find the README marker, the content might be just README
+    // or might not contain README at all
+    let content_to_search = match readme_start {
+        Some(pos) => &readme_content[pos..],
+        None => readme_content,
+    };
+
+    // Process the content line by line, skipping the prefix line
+    let mut content_lines = Vec::new();
+    for line in content_to_search.lines() {
         // Skip the "📚 Project README (from ...):" line
         if line.starts_with("📚 Project README") {
             continue;
diff --git a/crates/g3-cli/src/ui_writer_impl.rs b/crates/g3-cli/src/ui_writer_impl.rs
index eabbab3..1f7f97f 100644
--- a/crates/g3-cli/src/ui_writer_impl.rs
+++ b/crates/g3-cli/src/ui_writer_impl.rs
@@ -9,6 +9,7 @@ pub struct ConsoleUiWriter {
     current_tool_args: std::sync::Mutex<Vec<(String, String)>>,
     current_output_line: std::sync::Mutex<Option<String>>,
     output_line_printed: std::sync::Mutex<bool>,
+    is_agent_mode: std::sync::Mutex<bool>,
 }
 
 impl ConsoleUiWriter {
@@ -18,6 +19,7 @@ impl ConsoleUiWriter {
             current_tool_args: std::sync::Mutex::new(Vec::new()),
             current_output_line: std::sync::Mutex::new(None),
             output_line_printed: std::sync::Mutex::new(false),
+            is_agent_mode: std::sync::Mutex::new(false),
         }
     }
 }
@@ -109,7 +111,11 @@ impl UiWriter for ConsoleUiWriter {
         // Reset output_line_printed at the start of a new tool output
         // This ensures the header isn't cleared by update_tool_output_line
         *self.output_line_printed.lock().unwrap() = false;
-        // Now print the tool header with the most important arg in bold green
+        // Now print the tool header with the most important arg
+        // Use royal blue in agent mode, bold green otherwise
+        let is_agent_mode = *self.is_agent_mode.lock().unwrap();
+        // Royal blue: \x1b[38;5;69m, Bold green: \x1b[1;32m
+        let tool_color = if is_agent_mode { "\x1b[1;38;5;69m" } else { "\x1b[1;32m" };
         if let Some(tool_name) = self.current_tool_name.lock().unwrap().as_ref() {
             let args = self.current_tool_args.lock().unwrap();
 
@@ -162,14 +168,14 @@ impl UiWriter for ConsoleUiWriter {
                     String::new()
                 };
 
-                // Print with bold green tool name, purple (non-bold) for pipe and args
+                // Print with tool name in color (royal blue for agent mode, green otherwise)
                 println!(
-                    "┌─\x1b[1;32m {}\x1b[0m\x1b[35m | {}{}\x1b[0m",
-                    tool_name, display_value, header_suffix
+                    "┌─{} {}\x1b[0m\x1b[35m | {}{}\x1b[0m",
+                    tool_color, tool_name, display_value, header_suffix
                 );
             } else {
-                // Print with bold green formatting using ANSI escape codes
-                println!("┌─\x1b[1;32m {}\x1b[0m", tool_name);
+                // Print with tool name in color
+                println!("┌─{} {}\x1b[0m", tool_color, tool_name);
             }
         }
     }
@@ -361,4 +367,8 @@ impl UiWriter for ConsoleUiWriter {
         // Reset the filter state for a new response
         reset_json_tool_state();
     }
+
+    fn set_agent_mode(&self, is_agent_mode: bool) {
+        *self.is_agent_mode.lock().unwrap() = is_agent_mode;
+    }
 }
diff --git a/crates/g3-core/src/ui_writer.rs b/crates/g3-core/src/ui_writer.rs
index ea69375..348b609 100644
--- a/crates/g3-core/src/ui_writer.rs
+++ b/crates/g3-core/src/ui_writer.rs
@@ -81,6 +81,11 @@ pub trait UiWriter: Send + Sync {
     /// Called at the start of a new response to clear any partial state.
     /// Default implementation does nothing.
     fn reset_json_filter(&self) {}
+
+    /// Set whether the UI is in agent mode.
+    /// When in agent mode, tool names may be displayed differently (e.g., different color).
+    /// Default implementation does nothing.
+    fn set_agent_mode(&self, _is_agent_mode: bool) {}
 }
 
 /// A no-op implementation for when UI output is not needed