diff --git a/AGENTS.md b/AGENTS.md
index a9e3dd8..cddc12a 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -211,6 +211,17 @@ writes nothing — so check the files landed rather than trusting the exit code.
 `.agents/` is deliberately **not** in the generated `.gitignore`: the skill is
 meant to be committed so the whole team gets the same copy.
 
+### When the skill is absent
+
+The generated README and `AGENTS.md` both have a skill section, and it must
+describe what is on disk. `project-generator.ts` therefore copies the skill
+**before** rendering any template and passes `withSkills: skillCopied` — the
+copy's actual outcome, not the flag, so a failed copy is covered too. Without
+the skill, both docs link upstream (`SKILL_URL`) and give `SKILLS_ADD_COMMAND`
+instead of pointing at `.agents/`. That command omits `-a universal` on purpose:
+whoever opted out gets to pick the agent. The README section lives in
+`src/templates/common/skill-readme.ts`, shared by both transports.
+
 ## Examples
 
 `examples/` holds complete servers built with the CLI, one folder per example, indexed in `examples/README.md`. They are not part of the published package (`files` is `dist` only) and the root `lint`, `format`, `tsc` and `test` scripts do not touch them.
diff --git a/src/project-generator.ts b/src/project-generator.ts
index 7394668..cb37dd6 100644
--- a/src/project-generator.ts
+++ b/src/project-generator.ts
@@ -49,18 +49,34 @@ export interface ProjectConfig {
 export async function generateProject(config: ProjectConfig): Promise<void> {
   const { projectName, packageManager, transport, withOAuth, withGitInit, withSkills } = config;
 
-  const templateOptions: CommonTemplateOptions = {
-    withOAuth: transport === 'http' ? withOAuth : false,
-    packageManager,
-    transport,
-  };
-
   const projectPath = join(process.cwd(), projectName);
   const srcPath = join(projectPath, 'src');
 
   // Create directories
   await mkdir(srcPath, { recursive: true });
 
+  // The skill is vendored, so this is a file copy. It never fails the scaffold:
+  // the project is complete without it. It runs before the templates so the
+  // README and AGENTS.md describe what is actually on disk — a project without
+  // the skill must not point at a directory that does not exist.
+  let skillCopied = false;
+  if (withSkills) {
+    const result = await copySkill(projectPath);
+    skillCopied = result.copied;
+
+    if (!result.copied) {
+      console.log(`\n  Could not add the tool-design skill (${result.reason}).`);
+      console.log(`  To add it by hand: ${SKILLS_INSTALL_HINT}`);
+    }
+  }
+
+  const templateOptions: CommonTemplateOptions = {
+    withOAuth: transport === 'http' ? withOAuth : false,
+    packageManager,
+    transport,
+    withSkills: skillCopied,
+  };
+
   // Build list of files to write
   const filesToWrite: Promise<void>[] = [];
 
@@ -132,19 +148,6 @@ export async function generateProject(config: ProjectConfig): Promise<void> {
     }
   }
 
-  // The skill is vendored, so this is a file copy. It never fails the scaffold:
-  // the project is complete without it.
-  let skillCopied = false;
-  if (withSkills) {
-    const result = await copySkill(projectPath);
-    skillCopied = result.copied;
-
-    if (!result.copied) {
-      console.log(`\n  Could not add the tool-design skill (${result.reason}).`);
-      console.log(`  To add it by hand: ${SKILLS_INSTALL_HINT}`);
-    }
-  }
-
   const commands = packageManagerCommands[packageManager];
   console.log(`\nCreated ${projectName} with MCP SDK (${transport}) at ${projectPath}`);
   console.log(`\nNext steps:`);
diff --git a/src/skills.ts b/src/skills.ts
index bfbe227..4d5141b 100644
--- a/src/skills.ts
+++ b/src/skills.ts
@@ -32,6 +32,17 @@ export const SKILLS_UPDATE_COMMAND = 'npx skills update -p -y';
  */
 export const SKILLS_INSTALL_HINT = `npx skills add ${SKILL_REPO} --skill ${SKILL_NAME} -a universal`;
 
+/** Where the skill lives upstream, for projects scaffolded without it. */
+export const SKILL_URL = `https://github.com/${SKILL_REPO}/tree/main/${SKILL_NAME}`;
+
+/**
+ * Offered to projects scaffolded with `--no-skills`.
+ *
+ * No `-a universal` here: whoever opted out of the vendored copy gets to pick
+ * which agent the skills CLI installs for.
+ */
+export const SKILLS_ADD_COMMAND = `npx skills add ${SKILL_REPO} --skill ${SKILL_NAME}`;
+
 /**
  * The vendored skill, copied verbatim from `agentailor/skills`.
  *
diff --git a/src/templates/common/agents.md.test.ts b/src/templates/common/agents.md.test.ts
index 1c07008..85e7dab 100644
--- a/src/templates/common/agents.md.test.ts
+++ b/src/templates/common/agents.md.test.ts
@@ -136,6 +136,17 @@ describe('getAgentsMdTemplate', () => {
       expect(template).toContain('Commit `.agents/`');
     });
 
+    // With --no-skills there is no .agents/ to point at; send the reader upstream.
+    it('should link upstream and give the install command when the skill is absent', () => {
+      for (const options of [sdkHttp, sdkStdio]) {
+        const template = getAgentsMdTemplate(projectName, { ...options, withSkills: false });
+        expect(template).not.toContain('.agents/');
+        expect(template).not.toContain('npx skills update');
+        expect(template).toContain('https://github.com/agentailor/skills/tree/main/tool-design');
+        expect(template).toContain('npx skills add agentailor/skills --skill tool-design');
+      }
+    });
+
     // The copy is vendored, so updating is the user's choice, not automatic.
     it("should frame the update as the reader's choice", () => {
       const template = getAgentsMdTemplate(projectName, sdkHttp);
diff --git a/src/templates/common/agents.md.ts b/src/templates/common/agents.md.ts
index 375fa4a..e3c86e7 100644
--- a/src/templates/common/agents.md.ts
+++ b/src/templates/common/agents.md.ts
@@ -1,5 +1,11 @@
 import type { CommonTemplateOptions } from './types.js';
-import { SKILLS_UPDATE_COMMAND, SKILLS_INSTALL_HINT, SKILLS_DIR } from '../../skills.js';
+import {
+  SKILLS_UPDATE_COMMAND,
+  SKILLS_INSTALL_HINT,
+  SKILLS_DIR,
+  SKILLS_ADD_COMMAND,
+  SKILL_URL,
+} from '../../skills.js';
 
 /**
  * AGENTS.md for the generated project.
@@ -12,6 +18,7 @@ export function getAgentsMdTemplate(projectName: string, options?: CommonTemplat
   const transport = options?.transport ?? 'http';
   const withOAuth = options?.withOAuth ?? false;
   const packageManager = options?.packageManager ?? 'npm';
+  const withSkills = options?.withSkills ?? true;
 
   const isStdio = transport === 'stdio';
 
@@ -152,7 +159,8 @@ root, and domain logic stays free of MCP imports so it remains testable on its
 own.
 `;
 
-  const skillSection = `
+  const skillSection = withSkills
+    ? `
 ## The tool-design skill
 
 \`${SKILLS_DIR}/skills/tool-design/SKILL.md\` is the long form of the guidance above,
@@ -172,6 +180,17 @@ That is yours to run, not something this project does for you. If the directory
 is missing entirely, add it with \`${SKILLS_INSTALL_HINT}\`.
 
 Commit \`${SKILLS_DIR}/\` so everyone working on this project gets the same copy.
+`
+    : `
+## The tool-design skill
+
+The guidance above is the short form of Agentailor's
+[tool-design](${SKILL_URL}) skill, which has the long form with worked
+examples. It is not installed in this project. To add it:
+
+\`\`\`bash
+${SKILLS_ADD_COMMAND}
+\`\`\`
 `;
 
   const conventions = `
diff --git a/src/templates/common/skill-readme.test.ts b/src/templates/common/skill-readme.test.ts
new file mode 100644
index 0000000..0495d48
--- /dev/null
+++ b/src/templates/common/skill-readme.test.ts
@@ -0,0 +1,28 @@
+import { describe, it, expect } from 'vitest';
+import { getSkillReadmeSection } from './skill-readme.js';
+import { getReadmeTemplate as getHttpReadme } from '../sdk/http/index.js';
+import { getReadmeTemplate as getStdioReadme } from '../sdk/stdio/index.js';
+
+describe('getSkillReadmeSection', () => {
+  it('should point at the installed skill and how to update it', () => {
+    const section = getSkillReadmeSection(true);
+    expect(section).toContain('.agents/skills/tool-design/');
+    expect(section).toContain('npx skills update -p -y');
+  });
+
+  // A --no-skills project has no .agents/; send the reader upstream instead.
+  it('should link upstream and give the install command when the skill is absent', () => {
+    const section = getSkillReadmeSection(false);
+    expect(section).not.toContain('.agents/');
+    expect(section).not.toContain('npx skills update');
+    expect(section).toContain('https://github.com/agentailor/skills/tree/main/tool-design');
+    expect(section).toContain('npx skills add agentailor/skills --skill tool-design');
+  });
+
+  it('should follow withSkills in both transport READMEs', () => {
+    for (const getReadme of [getHttpReadme, getStdioReadme]) {
+      expect(getReadme('p')).toContain('.agents/skills/tool-design/');
+      expect(getReadme('p', { withSkills: false })).not.toContain('.agents/');
+    }
+  });
+});
diff --git a/src/templates/common/skill-readme.ts b/src/templates/common/skill-readme.ts
new file mode 100644
index 0000000..ff315d8
--- /dev/null
+++ b/src/templates/common/skill-readme.ts
@@ -0,0 +1,37 @@
+import { SKILLS_ADD_COMMAND, SKILLS_DIR, SKILLS_UPDATE_COMMAND, SKILL_URL } from '../../skills.js';
+
+/**
+ * The README's "Tool design skill" section, shared by every transport.
+ *
+ * Branches on whether the skill is actually in the project: pointing at
+ * `.agents/skills/tool-design/` in a project scaffolded with `--no-skills` sends
+ * the reader to a directory that does not exist.
+ */
+export function getSkillReadmeSection(withSkills: boolean): string {
+  if (!withSkills) {
+    return `## Tool design skill
+
+Agentailor's [tool-design](${SKILL_URL}) skill gives a coding agent working here
+detailed guidance on designing MCP tools. It is not installed in this project.
+To add it:
+
+\`\`\`bash
+${SKILLS_ADD_COMMAND}
+\`\`\`
+`;
+  }
+
+  return `## Tool design skill
+
+Agentailor's [tool-design](${SKILL_URL}) skill is
+included at \`${SKILLS_DIR}/skills/tool-design/\`, so a coding agent working here has
+the guidance on hand. Commit it so the whole team gets the same copy.
+
+It is the version that shipped with the scaffolding CLI. To check for a newer
+one — your call, not automatic:
+
+\`\`\`bash
+${SKILLS_UPDATE_COMMAND}
+\`\`\`
+`;
+}
diff --git a/src/templates/common/types.ts b/src/templates/common/types.ts
index a0b70ea..eb9e533 100644
--- a/src/templates/common/types.ts
+++ b/src/templates/common/types.ts
@@ -6,6 +6,11 @@ export type TransportType = 'http' | 'stdio';
  */
 export interface BaseTemplateOptions {
   packageManager?: PackageManager;
+  /**
+   * Whether the tool-design skill is present in the project. Defaults to true.
+   * The generator sets it from the copy's actual outcome, not just the flag.
+   */
+  withSkills?: boolean;
 }
 
 /**
diff --git a/src/templates/sdk/http/readme.ts b/src/templates/sdk/http/readme.ts
index 5084889..455e1a8 100644
--- a/src/templates/sdk/http/readme.ts
+++ b/src/templates/sdk/http/readme.ts
@@ -1,4 +1,5 @@
 import type { TemplateOptions } from './index.js';
+import { getSkillReadmeSection } from '../../common/skill-readme.js';
 
 /**
  * Shared README template, used by both SDK HTTP template types.
@@ -245,19 +246,7 @@ docker run -p 3000:3000 ${projectName}
   instance is discarded between calls.
 - Modify the HTTP handler and Express configuration in \`src/index.ts\`${customizationOAuthNote}
 
-## Tool design skill
-
-Agentailor's [tool-design](https://github.com/agentailor/skills) skill is
-included at \`.agents/skills/tool-design/\`, so a coding agent working here has
-the guidance on hand. Commit it so the whole team gets the same copy.
-
-It is the version that shipped with the scaffolding CLI. To check for a newer
-one — your call, not automatic:
-
-\`\`\`bash
-npx skills update -p -y
-\`\`\`
-
+${getSkillReadmeSection(options?.withSkills ?? true)}
 ## Learn More
 
 - [Model Context Protocol](https://modelcontextprotocol.io/)
diff --git a/src/templates/sdk/stdio/readme.ts b/src/templates/sdk/stdio/readme.ts
index e7b4b69..c579a48 100644
--- a/src/templates/sdk/stdio/readme.ts
+++ b/src/templates/sdk/stdio/readme.ts
@@ -1,4 +1,5 @@
 import type { TemplateOptions } from './index.js';
+import { getSkillReadmeSection } from '../../common/skill-readme.js';
 
 export function getReadmeTemplate(projectName: string, options?: TemplateOptions): string {
   const packageManager = options?.packageManager ?? 'npm';
@@ -155,19 +156,7 @@ ${projectName}/
   imports so it stays testable on its own.
 - Modify transport configuration in \`src/index.ts\`
 
-## Tool design skill
-
-Agentailor's [tool-design](https://github.com/agentailor/skills) skill is
-included at \`.agents/skills/tool-design/\`, so a coding agent working here has
-the guidance on hand. Commit it so the whole team gets the same copy.
-
-It is the version that shipped with the scaffolding CLI. To check for a newer
-one — your call, not automatic:
-
-\`\`\`bash
-npx skills update -p -y
-\`\`\`
-
+${getSkillReadmeSection(options?.withSkills ?? true)}
 ## Learn More
 
 - [Model Context Protocol](https://modelcontextprotocol.io/)