@@ -0,0 +1,6 @@
+---
+"@bradygaster/squad-sdk": patch
+"@bradygaster/squad-cli": patch
+---
+
+Projects linked to a team repository (`squad link`, `squad init --mode remote`) use that team: `squad init`/`squad upgrade` no longer scaffold a placeholder local roster, routing, charters or casting; Claude Code member subagents are projected from the linked team; and every coordinator digest reads a linked team through `squad_state`.
@@ -86,6 +86,7 @@ Claude Code is the first host after GitHub Copilot where Squad uses the host's o
 - `.squad/templates/human-members.md` ships again. The template index listed it, but it had been missing since 2025. It describes adding a human to the roster and now includes the sign-off gate: a request to do gated work is not the sign-off.
 - `squad doctor` no longer fails the `squad_state` bridge check when the team folder has two spellings, such as macOS `/var` and `/private/var`. It compares the real paths.
 - When `squad_state` is unavailable and `.squad/config.json` sets a non-local `stateBackend`, the non-Copilot coordinators stop and say so instead of writing `.squad/decisions.md` directly, which that backend never reads. Seen in a live test with `two-layer`.
+- **A project linked to a team repository uses that team in Claude Code.** After `squad link` or `squad init --mode remote`, `squad init` and `squad upgrade` scaffolded a placeholder local team (an empty roster, routing, the built-ins, casting), and Claude Code's member subagents came from that empty team. Now a linked project gets no local roster, routing, charters or casting; its member subagents are projected from the linked team and read their charters through `squad_state`; Copilot's agent file advertises the linked team's cast; and every coordinator's digest says to read a linked team only through `squad_state`. The team repository is never written.
 - `squad init --client claude` tells you to run `claude --agent squad --mcp-config .mcp.json`, not Copilot. With several hosts it gives one line per host (#2453).
 - `squad_state` starts when Claude Code is started in a subfolder of the repository, such as a package in a monorepo. Claude Code finds the root `.mcp.json` from there but starts the server in the subfolder, so `node .squad/squad.mjs state-mcp` failed with "Cannot find module". The committed command now runs a short `node -e` script that finds the repository root (the nearest folder with `.git`) and runs only the `.squad/squad.mjs` there, so a launcher in a package's own `.squad/` or above the repository is never run. Run `squad upgrade` to rewrite an existing `.mcp.json`.
 - `.squad/squad.mjs` finds a `squad` on PATH. It used to skip every PATH entry, so a repository with only a global Squad CLI failed with "no Squad CLI found". Arguments reach the CLI unchanged on Windows (through npm's `.cmd` shims, never cmd.exe) and Linux, and a new CI job runs the launcher tests on both.
 
@@ -19,7 +19,7 @@ import {
   type ClientId,
   type ProjectionFile,
 } from '@bradygaster/squad-sdk/client';
-import { readClientFlag, readConfiguredClients, readUnknownConfiguredClients, syncClients, reportClientResults, parseClients } from '../core/clients.js';
+import { linkedTeamDir, readClientFlag, readConfiguredClients, readUnknownConfiguredClients, syncClients, reportClientResults, parseClients } from '../core/clients.js';
 import { detectSquadDir } from '../core/detect-squad-dir.js';
 import { projectSquadStateMcpSpec, resolveCommittedSquadStateMcpSpec } from '../core/mcp-spec.js';
 import { getPackageVersion } from '../core/version.js';
@@ -62,6 +62,8 @@ export async function listClients(dest: string): Promise<ClientListResult> {
     root: dest,
     mcp: { command: spec.command, args: spec.args },
     squadDir: path.relative(dest, squadDir).split(path.sep).join('/') || '.squad',
+    // A linked team's members are projected too, so they are expected here as well.
+    ...linkedTeamDir(dest),
   };
 
   const clients: ClientStatus[] = CLIENT_IDS
 
@@ -28,6 +28,7 @@ import {
   type ClientId,
 } from '@bradygaster/squad-sdk/client';
 import { projectSquadStateMcpSpec, resolveCommittedSquadStateMcpSpec } from './mcp-spec.js';
+import { resolveSquadPaths } from '@bradygaster/squad-sdk/resolution';
 import { getPackageVersion } from './version.js';
 
 export { CLIENT_IDS, parseClients, type ClientId };
@@ -153,6 +154,23 @@ export function persistClaudePlugin(squadDir: string, on: boolean): void {
  * (it would otherwise re-warn on every upgrade); already-configured clients stay.
  * Returns the clients that were synced and per-file results.
  */
+/**
+ * The linked team's squad directory when the project at `dest` (its own `.squad/`, not a parent's)
+ * uses a team repository (`squad link`, `init --mode remote`), else null.
+ */
+export function linkedTeamSquadDir(dest: string): string | null {
+  const paths = resolveSquadPaths(dest);
+  return paths?.mode === 'remote' && path.resolve(paths.projectDir) === path.resolve(dest, '.squad')
+    ? paths.teamSquadDir
+    : null;
+}
+
+/** `{ teamDir }` when `dest` is linked to a team repository (remote mode), else nothing. */
+export function linkedTeamDir(dest: string): { teamDir?: string } {
+  const teamDir = linkedTeamSquadDir(dest);
+  return teamDir ? { teamDir } : {};
+}
+
 export async function syncClients(
   dest: string,
   squadDir: string,
@@ -189,6 +207,7 @@ export async function syncClients(
     root: dest,
     mcp: { command: spec.command, args: spec.args },
     squadDir: path.relative(dest, squadDir).split(path.sep).join('/') || '.squad',
+    ...linkedTeamDir(dest),
   };
   const results = installClients(clients, ctx);
   const failedPaths = new Set(results.filter((r) => r.action === 'error').map((r) => r.path));
 
@@ -23,7 +23,7 @@ import {
   reconcileSquadStateUserConfig,
   tombstoneStaleSquadStateInProjectMcp,
 } from './mcp-root.js';
-import { applyClientProjectionsForInit, readConfiguredClients, reportClientResults, type ClientId } from './clients.js';
+import { applyClientProjectionsForInit, linkedTeamSquadDir, readConfiguredClients, reportClientResults, type ClientId } from './clients.js';
 import { getHostProjection, readClaudePluginMode } from '@bradygaster/squad-sdk/client';
 import {
   readTeamMd,
@@ -322,9 +322,15 @@ export async function runInit(dest: string, options: RunInitOptions = {}): Promi
     showDeprecationWarning();
   }
 
+  // A project linked to a team repository (`squad link`, `init --mode remote`) uses that team.
+  const linkedTeamDir = linkedTeamSquadDir(dest);
+  const linkedTeam = linkedTeamDir !== null;
+
   // Build SDK options
   const initOptions: InitOptions = {
     teamRoot: dest,
+    linkedTeam,
+    ...(linkedTeamDir ? { linkedTeamDir } : {}),
     agentFileRoot,
     projectName: path.basename(dest) || 'my-project',
     agents: [
@@ -399,7 +405,7 @@ export async function runInit(dest: string, options: RunInitOptions = {}): Promi
   // entries with overwriteOnUpgrade: false and copies each one only if absent.
   try {
     const templatesDir = getTemplatesDir();
-    ensureUserOwnedTemplates(dest, templatesDir);
+    ensureUserOwnedTemplates(dest, templatesDir, linkedTeam);
     // Baseline for `squad upgrade`: hashes of every squad-owned file as shipped by this init.
     recordShippedFilesAfterInit(dest, squadDir, templatesDir, version);
   } catch {
@@ -594,8 +600,9 @@ export async function runInit(dest: string, options: RunInitOptions = {}): Promi
   // Ask if the user wants to add @copilot as an autonomous team member.
   // This enables .github/copilot-instructions.md and adds Coding Agent
   // to the team roster, allowing squad-labeled issues to be auto-assigned.
-  const teamContent = readTeamMd(squadDir);
-  if (!hasCopilot(teamContent)) {
+  // A linked project's roster lives in the team repository: add @copilot there.
+  const teamContent = linkedTeam ? '' : readTeamMd(squadDir);
+  if (!linkedTeam && !hasCopilot(teamContent)) {
     if (isInteractiveSession()) {
       const { createInterface } = await import('node:readline/promises');
       const rl = createInterface({ input: process.stdin, output: process.stdout });
 
@@ -34,7 +34,7 @@ import {
   reconcileSquadStateUserConfig,
   tombstoneStaleSquadStateInProjectMcp,
 } from './mcp-root.js';
-import { applyClientProjectionsForUpgrade, reportClientResults, type ClientId } from './clients.js';
+import { applyClientProjectionsForUpgrade, linkedTeamSquadDir, reportClientResults, type ClientId } from './clients.js';
 import {
   applyRetiredFiles,
   applySquadOwnedFiles,
@@ -387,7 +387,9 @@ function writeAgentTemplate(agentSrc: string, agentDest: string, cliVersion: str
   // still succeeds if rendering fails, but the stale-data risk is surfaced.
   if (options?.squadDir) {
     try {
-      syncTeamCapabilities({ squadDir: options.squadDir, agentFile: agentDest, storage });
+      // A linked project advertises the linked team's cast.
+      const capabilitiesDir = linkedTeamSquadDir(path.resolve(options.squadDir, '..')) ?? options.squadDir;
+      syncTeamCapabilities({ squadDir: capabilitiesDir, agentFile: agentDest, storage });
     } catch (error) {
       warn(
         `Could not refresh squad.agent.md team capabilities: ${
@@ -822,9 +824,14 @@ export function ensureGitignore(dest: string, options: { dryRun?: boolean } = {}
 /**
  * Create missing infrastructure directories
  */
+/** Team directories a linked project (remote mode) leaves to its team repository. */
+const LINKED_TEAM_DIRECTORIES = new Set(['.squad/agents', '.squad/casting', '.squad/identity']);
+
 export function ensureDirectories(dest: string): string[] {
   const created: string[] = [];
+  const linked = linkedTeamSquadDir(dest) !== null;
   for (const dir of ENSURE_DIRECTORIES) {
+    if (linked && LINKED_TEAM_DIRECTORIES.has(dir.replace(/\\/g, '/').replace(/\/$/, ''))) continue;
     const fullPath = path.join(dest, dir);
     if (!storage.existsSync(fullPath)) {
       storage.mkdirSync(fullPath, { recursive: true });
@@ -1131,6 +1138,7 @@ export async function ensureEsmImportsPatched(dest: string): Promise<boolean> {
  * Idempotent; the later ensure pass finds nothing left to create.
  */
 function preflightCastingPair(dest: string, templatesDir: string, filesUpdated: string[]): void {
+  if (linkedTeamSquadDir(dest) !== null) return; // The linked team repository holds the casting pair.
   const created = ensureCastingDefaults(dest, templatesDir);
   if (created.length > 0) {
     success(`scaffolded ${created.length} default casting files`);
@@ -1144,6 +1152,7 @@ function preflightCastingPair(dest: string, templatesDir: string, filesUpdated:
  * user-owned and is changed only by the explicit `squad roster` command.
  */
 function prepareBuiltinAgents(dest: string, templatesDir: string, filesUpdated: string[]): void {
+  if (linkedTeamSquadDir(dest) !== null) return; // The built-ins' charters live in the linked team repository.
   const raiMigration = migrateLegacyRaiAgent(dest);
   if (raiMigration.migrated.length > 0) {
     success(`migrated .squad/agents/Rai/ → .squad/agents/rai/${raiMigration.recordedInGit ? ' (recorded with git mv)' : ''}`);
@@ -1202,7 +1211,9 @@ async function runEnsureChecks(
     filesUpdated.push(...dirsCreated);
   }
 
-  if (!options.skipCasting) {
+  // A project linked to a team repository keeps casting and team templates there.
+  const linkedTeam = linkedTeamSquadDir(dest) !== null;
+  if (!options.skipCasting && !linkedTeam) {
     const castingFiles = ensureCastingDefaults(dest, templatesDir);
     if (castingFiles.length > 0) {
       success(`scaffolded ${castingFiles.length} default casting files`);
@@ -1221,7 +1232,7 @@ async function runEnsureChecks(
     filesUpdated.push(...memoryFiles);
   }
 
-  const userOwned = ensureUserOwnedTemplates(dest, templatesDir);
+  const userOwned = ensureUserOwnedTemplates(dest, templatesDir, linkedTeam);
   if (userOwned.length > 0) {
     success(`installed ${userOwned.length} missing user-owned template(s): ${userOwned.join(', ')}`);
     filesUpdated.push(...userOwned);
@@ -1525,10 +1536,13 @@ export function ensureBuiltinAgents(dest: string, templatesDir: string): string[
  * (via runEnsureChecks) so that newly-added user-owned templates are installed
  * for existing squads on upgrade without overwriting any prior customization.
  */
-export function ensureUserOwnedTemplates(dest: string, templatesDir: string): string[] {
+export function ensureUserOwnedTemplates(dest: string, templatesDir: string, linkedTeam = false): string[] {
   const created: string[] = [];
   const squadDir = path.join(dest, '.squad');
-  const userOwned = TEMPLATE_MANIFEST.filter(f => !f.overwriteOnUpgrade && !f.source.startsWith('skills/'));
+  // A project linked to a team repository keeps the team's own files (routing, ceremonies,
+  // identity) there: only files outside `.squad/` are seeded locally.
+  const userOwned = TEMPLATE_MANIFEST.filter(f => !f.overwriteOnUpgrade && !f.source.startsWith('skills/') &&
+    (!linkedTeam || f.destination.startsWith('../')));
 
   for (const entry of userOwned) {
     const srcPath = path.join(templatesDir, entry.source);
 
@@ -10,6 +10,7 @@
 import path from 'node:path';
 import { FSStorageProvider } from '@bradygaster/squad-sdk';
 import { resolveStateDir } from '../core/effective-squad-dir.js';
+import { linkedTeamSquadDir } from '../core/clients.js';
 import { SessionRegistry } from './sessions.js';
 import { ShellRenderer } from './render.js';
 import type { ShellState, ShellMessage } from './types.js';
@@ -75,8 +76,9 @@ export class ShellLifecycle {
       throw err;
     }
 
-    // Resolve effective state dir (external when externalized)
-    const squadDir = resolveStateDir(localSquadDir);
+    // The team's files come from a linked team repository when there is one (remote mode), then
+    // from external state when externalized. Project-local files (.init-prompt) stay in localSquadDir.
+    const squadDir = resolveStateDir(linkedTeamSquadDir(this.options.teamRoot) ?? localSquadDir);
 
     const teamPath = path.join(squadDir, 'team.md');
     const teamContent = await storage.read(teamPath);
 
@@ -137,6 +137,7 @@ export function renderClaudeMember(
   configEffort?: string,
   /** `squad_state` tool-name prefix: `mcp__squad_state__` (project `.mcp.json`) or the plugin's. */
   mcpPrefix = 'mcp__squad_state__',
+  linked = false,
 ): string {
   const parsed = parseCharterMarkdown(charter);
   const host = parseClaudeHostSettings(charter);
@@ -172,6 +173,22 @@ export function renderClaudeMember(
 
   const charterPath = `${squadDir}/agents/${id}/charter.md`;
   const historyPath = `${squadDir}/agents/${id}/history.md`;
+  // A linked team's files are outside this project, so the charter is carried in this file (it is
+  // regenerated on every sync). The history is read through squad_state only when the authored tool
+  // list allows it; the list is never widened.
+  const canReadState =
+    !host.tools || host.tools.some((t) => t === `${mcpPrefix}squad_state_read` || t === `${mcpPrefix}*` || t === mcpPrefix.replace(/__$/, ''));
+  if (linked && !canReadState) {
+    notes.push(`History not readable (the Tools list has no \`${mcpPrefix}squad_state_read\`; the spawn prompt must carry it)`);
+  }
+  const readCharter = linked
+    ? `This project uses a linked team repository. Your charter from it is below. ` +
+      (canReadState
+        ? `Read your history with \`squad_state_read\` (key \`agents/${id}/history.md\`), not from \`${squadDir}/\`. `
+        : `Your history is not available to you here: rely on the spawn prompt. `)
+    : `Before you start, read your charter at \`${charterPath}\` and your history at \`${historyPath}\`. ` +
+      `If the spawn prompt gives a TEAM ROOT, resolve these paths under it instead. `;
+  const linkedCharter = linked ? `\n## Your charter (linked team repository)\n\n${charter.replace(/\r\n?/g, '\n').trim()}\n` : '';
   const notesBlock =
     notes.length > 0
       ? `\n<!-- Charter preferences not projected to Claude Code: ${notes.join('; ').replace(/--/g, '- -')}. -->\n`
@@ -181,11 +198,11 @@ export function renderClaudeMember(
     `---\n${fields.map(([k, v]) => `${k}: ${v}`).join('\n')}\n---\n` +
     `${generatedNote}\n${notesBlock}\n` +
     `You are **${name}**${role ? `, ${role},` : ''} on this project's Squad team.\n\n` +
-    `Before you start, read your charter at \`${charterPath}\` and your history at \`${historyPath}\`. ` +
-    `If the spawn prompt gives a TEAM ROOT, resolve these paths under it instead. ` +
+    readCharter +
     `Your charter is authoritative: follow its responsibilities and boundaries, and the task in the spawn prompt.\n\n` +
     `Squad dispatches specialists only from the coordinator: do not spawn subagents of your own. ` +
-    `Read and write shared team state through the \`squad_state\` MCP tools (\`${mcpPrefix}*\`) when they are available.\n`
+    `Read and write shared team state through the \`squad_state\` MCP tools (\`${mcpPrefix}*\`) when they are available.\n` +
+    linkedCharter
   );
 }
 
@@ -200,11 +217,14 @@ export function projectClaudeMembers(
   mcpPrefix?: string,
 ): ProjectionFile[] {
   const squadDir = ctx.squadDir ?? '.squad';
-  const squadAbs = path.resolve(ctx.root, squadDir);
+  // A linked team repository (remote mode) holds the members and routing.
+  const linked = ctx.teamDir !== undefined;
+  const squadAbs = linked ? path.resolve(ctx.teamDir!) : path.resolve(ctx.root, squadDir);
   const agentsAbs = path.join(squadAbs, 'agents');
   const routing = readRouting(squadAbs);
   const ids = memberIds(agentsAbs);
-  const effortConfig = readEffortConfig(squadAbs);
+  // Effort overrides are this project's own settings, even when the team is linked.
+  const effortConfig = readEffortConfig(path.resolve(ctx.root, squadDir));
   const files: ProjectionFile[] = [];
   for (const id of ids) {
     let charter: string;
@@ -218,7 +238,7 @@ export function projectClaudeMembers(
       kind: 'managed',
       path: `${CLAUDE_AGENTS_DIR}/${id}.md`,
       ownedMarker,
-      content: renderClaudeMember(id, charter, routing, squadDir, generatedNote, effortConfig(id), mcpPrefix),
+      content: renderClaudeMember(id, charter, routing, squadDir, generatedNote, effortConfig(id), mcpPrefix, linked),
     });
   }