diff --git a/.changeset/agent-manager-model-sync.md b/.changeset/agent-manager-model-sync.md
new file mode 100644
index 0000000000..2971b1b325
--- /dev/null
+++ b/.changeset/agent-manager-model-sync.md
@@ -0,0 +1,5 @@
+---
+"kilo-code": patch
+---
+
+Fix agent-manager model sync on config change
diff --git a/packages/kilo-vscode/webview-ui/agent-manager/NewWorktreeDialog.tsx b/packages/kilo-vscode/webview-ui/agent-manager/NewWorktreeDialog.tsx
index cf02944405..af364479a1 100644
--- a/packages/kilo-vscode/webview-ui/agent-manager/NewWorktreeDialog.tsx
+++ b/packages/kilo-vscode/webview-ui/agent-manager/NewWorktreeDialog.tsx
@@ -85,7 +85,7 @@ export const NewWorktreeDialog: Component<{ onClose: () => void; defaultBaseBran
   const cached = vscode.getState<Record<string, unknown>>()
   const [prompt, setPrompt] = createSignal((cached?.advancedDialogPrompt as string) ?? "")
   const [versions, setVersions] = createSignal<VersionCount>(1)
-  const [model, setModel] = createSignal<{ providerID: string; modelID: string } | null>(session.selected())
+  const [model, setModel] = createSignal<{ providerID: string; modelID: string } | null>(session.configModel())
   const [compareMode, setCompareMode] = createSignal(false)
   const [modelAllocations, setModelAllocations] = createSignal<ModelAllocations>(new Map())
   const [agent, setAgent] = createSignal(session.selectedAgent())
@@ -121,7 +121,7 @@ export const NewWorktreeDialog: Component<{ onClose: () => void; defaultBaseBran
   // True when the user has changed the model from the session/config default
   const overridden = createMemo(() => {
     const sel = model()
-    const cfg = session.selected()
+    const cfg = session.configModel()
     if (!sel || !cfg) return false
     return sel.providerID !== cfg.providerID || sel.modelID !== cfg.modelID
   })
@@ -441,7 +441,7 @@ export const NewWorktreeDialog: Component<{ onClose: () => void; defaultBaseBran
                         <Button
                           variant="ghost"
                           size="small"
-                          onClick={() => setModel(session.selected())}
+                          onClick={() => setModel(session.configModel())}
                           aria-label={t("prompt.action.resetModel")}
                         >
                           <svg width="12" height="12" viewBox="0 0 16 16" fill="currentColor">
diff --git a/packages/kilo-vscode/webview-ui/src/context/session.tsx b/packages/kilo-vscode/webview-ui/src/context/session.tsx
index 0f564a07d0..f608ea47d6 100644
--- a/packages/kilo-vscode/webview-ui/src/context/session.tsx
+++ b/packages/kilo-vscode/webview-ui/src/context/session.tsx
@@ -4,7 +4,17 @@
  * Also owns global (extension-lifetime) model selection (provider context is catalog-only).
  */
 
-import { createContext, useContext, createSignal, createMemo, createEffect, onMount, onCleanup, batch } from "solid-js"
+import {
+  createContext,
+  useContext,
+  createSignal,
+  createMemo,
+  createEffect,
+  onMount,
+  onCleanup,
+  batch,
+  untrack,
+} from "solid-js"
 import type { ParentComponent, Accessor } from "solid-js"
 import { createStore, produce, reconcile } from "solid-js/store"
 import { useVSCode } from "./vscode"
@@ -171,6 +181,7 @@ interface SessionContextValue {
 
   // Model selection (global, extension-lifetime)
   selected: (sessionID?: string) => ModelSelection | null
+  configModel: (sessionID?: string) => ModelSelection | null
   selectModel: (providerID: string, modelID: string, sessionID?: string) => void
   hasModelOverride: (sessionID?: string) => boolean
   clearModelOverride: (sessionID?: string) => void
@@ -786,6 +797,64 @@ export const SessionProvider: ParentComponent = (props) => {
   vscode.postMessage({ type: "requestFavorites" })
   onCleanup(unsubFavorites)
 
+  // Clear model overrides that match the previous config model (not intentional user overrides).
+  // When config.model changes, old overrides that were just default values should be cleared
+  // so sessions fall through to resolveModel() and pick up the new config model.
+  const [lastConfigModel, setLastConfigModel] = createSignal<ModelSelection | null>(getGlobalModel())
+  createEffect(() => {
+    const newConfigModel = getGlobalModel()
+    // Use untrack to read previous value without making this effect re-trigger on its own updates
+    const oldConfigModel = untrack(() => lastConfigModel())
+    if (oldConfigModel) {
+      // Also clear when newConfigModel is null (user removed model from config)
+      if (newConfigModel) {
+        const modelChanged =
+          oldConfigModel.providerID !== newConfigModel.providerID || oldConfigModel.modelID !== newConfigModel.modelID
+        if (modelChanged) {
+          // Clear overrides that match the OLD config model - these were likely defaults,
+          // not intentional user overrides. Overrides that differ from both old and new
+          // config are preserved (intentional user selections).
+          setStore(
+            "sessionOverrides",
+            produce((overrides) => {
+              for (const sid of Object.keys(overrides)) {
+                const override = overrides[sid]
+                if (
+                  override &&
+                  override.providerID === oldConfigModel.providerID &&
+                  override.modelID === oldConfigModel.modelID
+                ) {
+                  delete overrides[sid]
+                }
+              }
+            }),
+          )
+        }
+      } else {
+        // newConfigModel is null - clear all overrides that matched the old config model
+        // since the config no longer specifies a model. This ensures sessions fall through
+        // to provider defaults rather than using a stale removed model.
+        setStore(
+          "sessionOverrides",
+          produce((overrides) => {
+            for (const sid of Object.keys(overrides)) {
+              const override = overrides[sid]
+              if (
+                override &&
+                override.providerID === oldConfigModel.providerID &&
+                override.modelID === oldConfigModel.modelID
+              ) {
+                delete overrides[sid]
+              }
+            }
+          }),
+        )
+      }
+    }
+    // Update the tracked config model
+    setLastConfigModel(newConfigModel)
+  })
+
   function handleError(message: Extract<ExtensionMessage, { type: "error" }>) {
     if (!message.sessionID || message.sessionID === currentSessionID()) setLoading(false)
     if (message.sessionID) patchPage(message.sessionID, { loadingInitial: false, loadingOlder: false })
@@ -2479,6 +2548,7 @@ export const SessionProvider: ParentComponent = (props) => {
     scopedQuestions,
     scopedSuggestions,
     selected,
+    configModel,
     selectModel,
     hasModelOverride,
     clearModelOverride,