diff --git a/packages/plugin/src/v2/hooks/context.ts b/packages/plugin/src/v2/hooks/context.ts
index 747fc000e..3fac14c41 100644
--- a/packages/plugin/src/v2/hooks/context.ts
+++ b/packages/plugin/src/v2/hooks/context.ts
@@ -1294,6 +1294,13 @@ export async function registerContext(context: V2Context) {
                     type?: string;
                     data?: { sessionID?: string; error?: unknown };
                 };
+                // A provider or model reload can change the limit for the same
+                // model key. Drop the one-time catalog reads so the next pass
+                // re-reads the live limit.
+                if (event.type === "provider.updated" || event.type === "model.updated") {
+                    queriedModels.clear();
+                    continue;
+                }
                 if (!event.data?.sessionID) continue;
                 const sessionID = event.data.sessionID;
                 if (
diff --git a/packages/plugin/src/v2/hooks/model-limit-refresh.test.ts b/packages/plugin/src/v2/hooks/model-limit-refresh.test.ts
new file mode 100644
index 000000000..71a2425ab
--- /dev/null
+++ b/packages/plugin/src/v2/hooks/model-limit-refresh.test.ts
@@ -0,0 +1,180 @@
+import { afterAll, beforeAll, expect, spyOn, test } from "bun:test";
+import { mkdirSync } from "node:fs";
+import { join } from "node:path";
+import * as configLoader from "../../config";
+import { MagicContextConfigSchema } from "../../config/schema/magic-context";
+import { closeDatabase, openDatabase } from "../../features/magic-context/storage";
+import { resetCtxReduceRegisteredGloballyForTest } from "../../hooks/magic-context/ctx-reduce-availability";
+import * as budgets from "../../hooks/magic-context/derive-budgets";
+import * as transformModule from "../../hooks/magic-context/transform";
+import { _resetDreamTimerForTests } from "../../plugin/dream-timer";
+import { getSdkContextLimit, refreshModelLimitsFromApi } from "../../shared/models-dev-cache";
+import { Database } from "../../shared/sqlite";
+import { cleanupTestTempDir, createTestTempDir } from "../../shared/test-temp-dir";
+import { registerContext } from "./context";
+import { catalogProvidersPayload } from "./model-limit-cache";
+import * as storageGate from "./storage-gate";
+import type { SessionContext, V2Context } from "./types";
+
+const config = MagicContextConfigSchema.parse({
+    historian: {
+        disable: true,
+        maxTokens: 2048,
+        opencode: { model: "anthropic/claude-sonnet-4-5" },
+    },
+    dreamer: { disable: true, inject_docs: false },
+    memory: { enabled: false },
+    allow_home_project: true,
+});
+
+let currentLimit = 1_000_000;
+let listCalls = 0;
+let hook: ((draft: SessionContext) => Promise<void>) | undefined;
+let dispose: (() => Promise<void>) | undefined;
+let dir: string;
+const restores: Array<() => void> = [];
+const oldEnv = { XDG_DATA_HOME: process.env.XDG_DATA_HOME, OPENCODE_DB: process.env.OPENCODE_DB };
+let releaseEvent: () => void = () => {};
+const eventReady = new Promise<void>((resolve) => {
+    releaseEvent = resolve;
+});
+let eventProcessed: () => void = () => {};
+const processed = new Promise<void>((resolve) => {
+    eventProcessed = resolve;
+});
+
+function catalog() {
+    return {
+        data: [
+            {
+                id: "gpt-4.1",
+                providerID: "openai",
+                name: "GPT-4.1",
+                limit: { context: currentLimit, output: 32_000 },
+            },
+        ],
+    };
+}
+
+function pass(id: string): SessionContext {
+    return {
+        sessionID: "ses-model-limit-refresh",
+        model: {
+            providerID: "openai",
+            id: "gpt-4.1",
+            limit: { context: currentLimit, output: 32_000 },
+        },
+        agent: "build",
+        system: [],
+        options: {},
+        tools: {},
+        messages: [{ id, role: "user", content: [{ type: "text", text: "hello" }] }],
+    } as SessionContext;
+}
+
+beforeAll(async () => {
+    dir = createTestTempDir("mc-v2-model-limit-refresh-").dir;
+    process.env.XDG_DATA_HOME = dir;
+    process.env.OPENCODE_DB = join(dir, "opencode", "opencode.db");
+    mkdirSync(join(dir, "opencode"));
+    const store = new Database(process.env.OPENCODE_DB);
+    store.exec(
+        "CREATE TABLE session_message (id TEXT PRIMARY KEY, session_id TEXT, type TEXT, seq INTEGER, time_created INTEGER, data TEXT); CREATE TABLE session_v2 (id TEXT PRIMARY KEY, directory TEXT NOT NULL);",
+    );
+    store.close();
+    const db = openDatabase(join(dir, "context.db"));
+    if (!db) throw new Error("throwaway store unavailable");
+
+    // Warm the shared cache so the first pass does not start a background warm.
+    await refreshModelLimitsFromApi({
+        config: {
+            providers: async () => ({
+                data: { providers: catalogProvidersPayload(catalog()) },
+            }),
+        },
+    });
+
+    const load = spyOn(configLoader, "loadPluginConfigDetailed").mockReturnValue({
+        config,
+    } as ReturnType<typeof configLoader.loadPluginConfigDetailed>);
+    const probe = spyOn(storageGate, "probeV2StorageAtBoot").mockResolvedValue(db);
+    const contextLimit = spyOn(budgets, "resolveKnownHistorianContextLimit").mockReturnValue(
+        123456,
+    );
+    const fake = Object.assign(async () => {}, {
+        getRustReplayParticipant: () => null,
+        disposeRust: () => {},
+    });
+    const transform = spyOn(transformModule, "createTransform").mockImplementation(
+        () => fake as unknown as ReturnType<typeof transformModule.createTransform>,
+    );
+    restores.push(
+        () => load.mockRestore(),
+        () => probe.mockRestore(),
+        () => transform.mockRestore(),
+        () => contextLimit.mockRestore(),
+    );
+
+    const duties = await registerContext({
+        location: { directory: dir },
+        agent: { transform: async () => {}, reload: async () => {} },
+        model: {
+            list: () => {
+                listCalls += 1;
+                return catalog();
+            },
+        },
+        storage: { get: async () => undefined, set: async () => {} },
+        event: {
+            subscribe: async function* () {
+                await eventReady;
+                yield { type: "provider.updated", data: {} };
+                eventProcessed();
+            },
+        },
+        tool: { hook: async () => {} },
+        session: {
+            remove: async () => {},
+            compact: async () => {},
+            interrupt: async () => ({}),
+            hook: async (name: string, callback: typeof hook) => {
+                if (name === "context") hook = callback;
+            },
+            get: async () => ({ location: { directory: dir } }),
+        },
+    } as unknown as V2Context);
+    dispose = duties?.dispose;
+    expect(hook).toBeFunction();
+});
+
+afterAll(async () => {
+    releaseEvent();
+    await dispose?.();
+    for (const restore of restores) restore();
+    _resetDreamTimerForTests();
+    closeDatabase();
+    resetCtxReduceRegisteredGloballyForTest();
+    cleanupTestTempDir(dir);
+    for (const [key, value] of Object.entries(oldEnv)) {
+        if (value === undefined) delete process.env[key];
+        else process.env[key] = value;
+    }
+});
+
+test("re-reads the model catalog after a provider reload", async () => {
+    const limit = () => getSdkContextLimit("openai", "gpt-4.1", undefined, { reservation: "none" });
+    expect(limit()).toBe(1_000_000);
+
+    await hook!(pass("u1"));
+    const callsAfterFirstPass = listCalls;
+    expect(callsAfterFirstPass).toBeGreaterThan(0);
+    expect(limit()).toBe(1_000_000);
+
+    currentLimit = 500_000;
+    releaseEvent();
+    await processed;
+
+    await hook!(pass("u2"));
+    expect(listCalls).toBe(callsAfterFirstPass + 1);
+    expect(limit()).toBe(500_000);
+});