diff --git a/packages/kilo-vscode/src/KiloProvider.ts b/packages/kilo-vscode/src/KiloProvider.ts
index c3f8e66507c..f56e8c3cb7d 100644
--- a/packages/kilo-vscode/src/KiloProvider.ts
+++ b/packages/kilo-vscode/src/KiloProvider.ts
@@ -732,10 +732,7 @@ export class KiloProvider implements vscode.WebviewViewProvider, TelemetryProper
           const scope = message.mpInstallOptions?.target ?? "project"
           const result = await this.getMarketplace().install(message.mpItem, message.mpInstallOptions, workspace)
           if (result.success) {
-            await this.disposeCliInstance(scope)
-            this.cachedAgentsMessage = null
-            this.cachedConfigMessage = null
-            await Promise.all([this.fetchAndSendAgents(), this.fetchAndSendConfig()])
+            await this.invalidateAfterMarketplaceChange(scope)
           }
           this.postMessage({
             type: "marketplaceInstallResult",
@@ -750,10 +747,7 @@ export class KiloProvider implements vscode.WebviewViewProvider, TelemetryProper
           const scope = message.mpInstallOptions?.target ?? "project"
           const result = await this.getMarketplace().remove(message.mpItem, scope, workspace)
           if (result.success) {
-            await this.disposeCliInstance(scope)
-            this.cachedAgentsMessage = null
-            this.cachedConfigMessage = null
-            await Promise.all([this.fetchAndSendAgents(), this.fetchAndSendConfig()])
+            await this.invalidateAfterMarketplaceChange(scope)
           }
           this.postMessage({
             type: "marketplaceRemoveResult",
@@ -1373,6 +1367,43 @@ export class KiloProvider implements vscode.WebviewViewProvider, TelemetryProper
     })
   }
 
+  /**
+   * Invalidate CLI caches and refresh the webview after a marketplace install/remove.
+   *
+   * For global scope: uses global.config.update with the freshly-written config file
+   * contents rather than global.dispose. This goes through Config.updateGlobal() which
+   * calls Config.global.reset() to invalidate the lazy-cached global config, ensuring
+   * the newly installed/removed MCP entry is visible on the next config.get call.
+   * (global.dispose alone is not sufficient on older CLI versions that lack the
+   * Config.global.reset() call in the dispose handler.)
+   *
+   * For project scope: instance.dispose is sufficient because the per-instance
+   * Config.state is cleared and re-reads all files (including global) on next access.
+   */
+  private async invalidateAfterMarketplaceChange(scope: "project" | "global"): Promise<void> {
+    if (!this.client) return
+    if (scope === "global") {
+      // Use global.config.update with an empty config to trigger Config.updateGlobal()
+      // which calls Config.global.reset(). This invalidates the lazy-cached global
+      // config in the CLI process so it re-reads kilo.json from disk.
+      // An empty object merge is a no-op for the file content but resets the cache.
+      // (global.dispose alone is insufficient on older CLI versions that lack
+      // the Config.global.reset() call in the dispose handler.)
+      await this.client.global.config.update({ config: {} }).catch((e: unknown) => {
+        console.warn("[Kilo New] global.config.update after marketplace change failed:", e)
+      })
+    }
+    // Always dispose the per-project instance so it rebuilds state from
+    // the (possibly updated) global + project config on the next request.
+    const dir = this.getWorkspaceDirectory()
+    await this.client.instance.dispose({ directory: dir }).catch((e: unknown) => {
+      console.warn("[Kilo New] instance.dispose() after marketplace change failed:", e)
+    })
+    this.cachedAgentsMessage = null
+    this.cachedConfigMessage = null
+    await Promise.all([this.fetchAndSendAgents(), this.fetchAndSendConfig()])
+  }
+
   /**
    * Fetch backend config and send to webview.
    */