diff --git a/AGENTS.md b/AGENTS.md
index ecfd388986b..7285909eb25 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -255,6 +255,10 @@ We regularly merge upstream changes from opencode. To minimize merge conflicts a
 
 The goal is to keep our diff from upstream as small as possible, making regular merges straightforward and reducing the risk of conflicts.
 
+### Git conflict style
+
+`bun install` sets `merge.conflictStyle=zdiff3` repo-locally via `script/setup-git.ts` (wired into `postinstall`). Conflicts include the common ancestor between `|||||||` and `=======`, which is what `script/upstream/` and `mergiraf` rely on for structural resolution and what makes manual resolution on shared opencode files tractable. If you've overridden it in your user config, the repo-local setting takes precedence — don't override it back.
+
 ### Kilocode Change Markers
 
 To minimize merge conflicts when syncing with upstream, mark Kilo Code-specific changes in shared code with `kilocode_change` comments.
diff --git a/package.json b/package.json
index fe7327a31fc..a67e5c4a566 100644
--- a/package.json
+++ b/package.json
@@ -11,7 +11,7 @@
     "dev:storybook": "bun --cwd packages/storybook storybook",
     "lint": "oxlint",
     "typecheck": "bun turbo typecheck",
-    "postinstall": "bun run --cwd packages/opencode fix-node-pty",
+    "postinstall": "bun run --cwd packages/opencode fix-node-pty && bun run script/setup-git.ts",
     "prepare": "husky",
     "random": "echo 'Random script'",
     "hello": "echo 'Hello World!'",
diff --git a/script/setup-git.ts b/script/setup-git.ts
new file mode 100644
index 00000000000..db9d5e320ba
--- /dev/null
+++ b/script/setup-git.ts
@@ -0,0 +1,22 @@
+#!/usr/bin/env bun
+// kilocode_change - new file
+
+/**
+ * Configures repo-local git settings for all contributors.
+ *
+ * `merge.conflictStyle=zdiff3` makes conflict markers include the common
+ * ancestor (|||||||) alongside ours/theirs. That base section is what
+ * mergiraf's syntax-aware resolution feeds on during upstream opencode
+ * merges (see script/upstream/merge.ts) and it makes manual resolution
+ * dramatically easier than the default 2-way `merge` markers.
+ *
+ * Runs from `postinstall`. Safe to re-run — `git config` is idempotent.
+ * Guarded so tarball / docker installs without a `.git` don't fail.
+ */
+
+import { $ } from "bun"
+
+const inside = await $`git rev-parse --is-inside-work-tree`.nothrow().quiet()
+if (inside.exitCode !== 0) process.exit(0)
+
+await $`git config --local merge.conflictStyle zdiff3`.quiet()
diff --git a/script/upstream/utils/git.ts b/script/upstream/utils/git.ts
index a781276e983..d54d11bb958 100644
--- a/script/upstream/utils/git.ts
+++ b/script/upstream/utils/git.ts
@@ -122,11 +122,11 @@ export async function commit(message: string): Promise<void> {
 }
 
 export async function merge(branch: string): Promise<{ success: boolean; conflicts: string[] }> {
-  // Use zdiff3 markers so conflicts carry the base version (|||||||) alongside
-  // ours/theirs. This gives mergiraf the base it needs for structural heuristics
-  // and makes any remaining manual resolution dramatically easier (you can see
-  // what both sides changed relative to the common ancestor instead of
-  // reverse-engineering it from a 2-way marker).
+  // Force zdiff3 markers even if the contributor's local config has drifted:
+  // conflicts carry the base version (|||||||) alongside ours/theirs so mergiraf
+  // has the common ancestor for structural heuristics and any remaining manual
+  // resolution is dramatically easier. `postinstall` (script/setup-git.ts) sets
+  // this repo-wide as well; the `-c` override here is belt-and-suspenders.
   const result = await $`git -c merge.conflictStyle=zdiff3 merge ${branch}`.nothrow()
 
   if (result.exitCode === 0) {