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context-optimization

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This skill should be used when the user asks to "optimize context", "reduce token costs", "improve context efficiency", "implement KV-cache optimization", "partition context", or mentions context limits, observation masking, context budgeting, or extending effective context capacity.

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Marketplace

context-engineering-marketplace

muratcankoylan/Agent-Skills-for-Context-Engineering

Plugin

cognitive-architecture

Repository

muratcankoylan/Agent-Skills-for-Context-Engineering
7.8kstars

skills/context-optimization/SKILL.md

Last Verified

January 16, 2026

Install Skill

Select agents to install to:

Scope:
npx add-skill https://github.com/muratcankoylan/Agent-Skills-for-Context-Engineering/blob/main/skills/context-optimization/SKILL.md -a claude-code --skill context-optimization

Installation paths:

Claude
.claude/skills/context-optimization/
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Instructions

# Context Optimization Techniques

Context optimization extends the effective capacity of limited context windows through strategic compression, masking, caching, and partitioning. The goal is not to magically increase context windows but to make better use of available capacity. Effective optimization can double or triple effective context capacity without requiring larger models or longer contexts.

## When to Activate

Activate this skill when:
- Context limits constrain task complexity
- Optimizing for cost reduction (fewer tokens = lower costs)
- Reducing latency for long conversations
- Implementing long-running agent systems
- Needing to handle larger documents or conversations
- Building production systems at scale

## Core Concepts

Context optimization extends effective capacity through four primary strategies: compaction (summarizing context near limits), observation masking (replacing verbose outputs with references), KV-cache optimization (reusing cached computations), and context partitioning (splitting work across isolated contexts).

The key insight is that context quality matters more than quantity. Optimization preserves signal while reducing noise. The art lies in selecting what to keep versus what to discard, and when to apply each technique.

## Detailed Topics

### Compaction Strategies

**What is Compaction**
Compaction is the practice of summarizing context contents when approaching limits, then reinitializing a new context window with the summary. This distills the contents of a context window in a high-fidelity manner, enabling the agent to continue with minimal performance degradation.

Compaction typically serves as the first lever in context optimization. The art lies in selecting what to keep versus what to discard.

**Compaction Implementation**
Compaction works by identifying sections that can be compressed, generating summaries that capture essential points, and replacing full content with summaries. Priority for compression goes to 

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