diff --git a/packages/adapters/cursor-local/src/index.ts b/packages/adapters/cursor-local/src/index.ts
index 5c72a958..01eabfbd 100644
--- a/packages/adapters/cursor-local/src/index.ts
+++ b/packages/adapters/cursor-local/src/index.ts
@@ -65,7 +65,7 @@ Core fields:
 - instructionsFilePath (string, optional): absolute path to a markdown instructions file prepended to the run prompt
 - promptTemplate (string, optional): run prompt template
 - model (string, optional): Cursor model id (for example auto or gpt-5.3-codex)
-- mode (string, optional): Cursor execution mode passed as --mode (plan|ask)
+- mode (string, optional): Cursor execution mode passed as --mode (plan|ask). Defaults to ask when omitted.
 - command (string, optional): defaults to "agent"
 - extraArgs (string[], optional): additional CLI args
 - env (object, optional): KEY=VALUE environment variables
diff --git a/packages/adapters/cursor-local/src/server/execute.ts b/packages/adapters/cursor-local/src/server/execute.ts
index 5f29a178..39f94d7a 100644
--- a/packages/adapters/cursor-local/src/server/execute.ts
+++ b/packages/adapters/cursor-local/src/server/execute.ts
@@ -64,6 +64,20 @@ function normalizeMode(rawMode: string): "plan" | "ask" | null {
   return null;
 }
 
+function renderPaperclipEnvNote(env: Record<string, string>): string {
+  const paperclipKeys = Object.keys(env)
+    .filter((key) => key.startsWith("PAPERCLIP_"))
+    .sort();
+  if (paperclipKeys.length === 0) return "";
+  return [
+    "Paperclip runtime note:",
+    `The following PAPERCLIP_* environment variables are available in this run: ${paperclipKeys.join(", ")}`,
+    "Do not assume these variables are missing without checking your shell environment.",
+    "",
+    "",
+  ].join("\n");
+}
+
 function cursorSkillsHome(): string {
   return path.join(os.homedir(), ".cursor", "skills");
 }
@@ -143,7 +157,7 @@ export async function execute(ctx: AdapterExecutionContext): Promise<AdapterExec
   );
   const command = asString(config.command, "agent");
   const model = asString(config.model, DEFAULT_CURSOR_LOCAL_MODEL).trim();
-  const mode = normalizeMode(asString(config.mode, ""));
+  const mode = normalizeMode(asString(config.mode, "ask"));
 
   const workspaceContext = parseObject(context.paperclipWorkspace);
   const workspaceCwd = asString(workspaceContext.cwd, "");
@@ -310,7 +324,8 @@ export async function execute(ctx: AdapterExecutionContext): Promise<AdapterExec
     run: { id: runId, source: "on_demand" },
     context,
   });
-  const prompt = `${instructionsPrefix}${renderedPrompt}`;
+  const paperclipEnvNote = renderPaperclipEnvNote(env);
+  const prompt = `${instructionsPrefix}${paperclipEnvNote}${renderedPrompt}`;
 
   const buildArgs = (resumeSessionId: string | null) => {
     const args = ["-p", "--output-format", "stream-json", "--workspace", cwd];
diff --git a/server/src/__tests__/cursor-local-execute.test.ts b/server/src/__tests__/cursor-local-execute.test.ts
new file mode 100644
index 00000000..27638695
--- /dev/null
+++ b/server/src/__tests__/cursor-local-execute.test.ts
@@ -0,0 +1,123 @@
+import { describe, expect, it } from "vitest";
+import fs from "node:fs/promises";
+import os from "node:os";
+import path from "node:path";
+import { execute } from "@paperclipai/adapter-cursor-local/server";
+
+async function writeFakeCursorCommand(commandPath: string): Promise<void> {
+  const script = `#!/usr/bin/env node
+const fs = require("node:fs");
+
+const capturePath = process.env.PAPERCLIP_TEST_CAPTURE_PATH;
+const payload = {
+  argv: process.argv.slice(2),
+  prompt: process.argv.at(-1) ?? "",
+  paperclipEnvKeys: Object.keys(process.env)
+    .filter((key) => key.startsWith("PAPERCLIP_"))
+    .sort(),
+};
+if (capturePath) {
+  fs.writeFileSync(capturePath, JSON.stringify(payload), "utf8");
+}
+console.log(JSON.stringify({
+  type: "system",
+  subtype: "init",
+  session_id: "cursor-session-1",
+  model: "auto",
+}));
+console.log(JSON.stringify({
+  type: "assistant",
+  message: { content: [{ type: "output_text", text: "hello" }] },
+}));
+console.log(JSON.stringify({
+  type: "result",
+  subtype: "success",
+  session_id: "cursor-session-1",
+  result: "ok",
+}));
+`;
+  await fs.writeFile(commandPath, script, "utf8");
+  await fs.chmod(commandPath, 0o755);
+}
+
+type CapturePayload = {
+  argv: string[];
+  prompt: string;
+  paperclipEnvKeys: string[];
+};
+
+describe("cursor execute", () => {
+  it("injects paperclip env vars and prompt note by default", async () => {
+    const root = await fs.mkdtemp(path.join(os.tmpdir(), "paperclip-cursor-execute-"));
+    const workspace = path.join(root, "workspace");
+    const commandPath = path.join(root, "agent");
+    const capturePath = path.join(root, "capture.json");
+    await fs.mkdir(workspace, { recursive: true });
+    await writeFakeCursorCommand(commandPath);
+
+    const previousHome = process.env.HOME;
+    process.env.HOME = root;
+
+    let invocationPrompt = "";
+    try {
+      const result = await execute({
+        runId: "run-1",
+        agent: {
+          id: "agent-1",
+          companyId: "company-1",
+          name: "Cursor Coder",
+          adapterType: "cursor",
+          adapterConfig: {},
+        },
+        runtime: {
+          sessionId: null,
+          sessionParams: null,
+          sessionDisplayId: null,
+          taskKey: null,
+        },
+        config: {
+          command: commandPath,
+          cwd: workspace,
+          model: "auto",
+          env: {
+            PAPERCLIP_TEST_CAPTURE_PATH: capturePath,
+          },
+          promptTemplate: "Follow the paperclip heartbeat.",
+        },
+        context: {},
+        authToken: "run-jwt-token",
+        onLog: async () => {},
+        onMeta: async (meta) => {
+          invocationPrompt = meta.prompt ?? "";
+        },
+      });
+
+      expect(result.exitCode).toBe(0);
+      expect(result.errorMessage).toBeNull();
+
+      const capture = JSON.parse(await fs.readFile(capturePath, "utf8")) as CapturePayload;
+      expect(capture.argv).toContain("--mode");
+      expect(capture.argv).toContain("ask");
+      expect(capture.paperclipEnvKeys).toEqual(
+        expect.arrayContaining([
+          "PAPERCLIP_AGENT_ID",
+          "PAPERCLIP_API_KEY",
+          "PAPERCLIP_API_URL",
+          "PAPERCLIP_COMPANY_ID",
+          "PAPERCLIP_RUN_ID",
+        ]),
+      );
+      expect(capture.prompt).toContain("Paperclip runtime note:");
+      expect(capture.prompt).toContain("PAPERCLIP_API_KEY");
+      expect(invocationPrompt).toContain("Paperclip runtime note:");
+      expect(invocationPrompt).toContain("PAPERCLIP_API_URL");
+    } finally {
+      if (previousHome === undefined) {
+        delete process.env.HOME;
+      } else {
+        process.env.HOME = previousHome;
+      }
+      await fs.rm(root, { recursive: true, force: true });
+    }
+  });
+});