diff --git a/.changeset/fix-acp-execution-regressions.md b/.changeset/fix-acp-execution-regressions.md
new file mode 100644
index 000000000..713501caa
--- /dev/null
+++ b/.changeset/fix-acp-execution-regressions.md
@@ -0,0 +1,5 @@
+---
+"@moonshot-ai/kimi-code": patch
+---
+
+Fix ACP session regressions: Bash, Grep, and Glob failing when the editor does not support terminal command execution, session creation failing with stdio MCP servers, and reopening a closed session failing with an internal error.
diff --git a/packages/acp-server/src/acp-terminal/acpTerminalRunner.ts b/packages/acp-server/src/acp-terminal/acpTerminalRunner.ts
index ec70df180..9016d48b6 100644
--- a/packages/acp-server/src/acp-terminal/acpTerminalRunner.ts
+++ b/packages/acp-server/src/acp-terminal/acpTerminalRunner.ts
@@ -47,6 +47,7 @@ class AcpProcessService implements IHostProcessService {
     private readonly sessionId: string,
     private readonly cwd: string,
     private readonly connection: IAcpConnection,
+    private readonly local: IHostProcessService,
   ) {}
 
   async spawn(
@@ -54,11 +55,8 @@ class AcpProcessService implements IHostProcessService {
     args: readonly string[] = [],
     options?: HostProcessOptions,
   ): Promise<IHostProcess> {
-    if (!this.connection.terminalEnabled) {
-      throw new Error('ACP terminal capability is unavailable');
-    }
-    if (!isBashToolInvocation(args, options)) {
-      throw new Error('ACP runtime only supports interactive Bash tool processes');
+    if (!this.connection.terminalEnabled || !isBashToolInvocation(args, options)) {
+      return this.local.spawn(command, args, { ...options, cwd: options?.cwd ?? this.cwd });
     }
 
     const handle = await this.connection.get().createTerminal({
@@ -178,6 +176,7 @@ class AcpSessionRuntime implements Runtime {
     cwd: string,
     connection: IAcpConnection,
     environment: IHostEnvironment,
+    local: IHostProcessService,
   ) {
     this.identity = {
       workspaceId,
@@ -205,7 +204,7 @@ class AcpSessionRuntime implements Runtime {
       dirname: (p: string) => path.dirname(p),
     };
     this.fs = new AcpHostFileSystem({ sessionId } as unknown as ISessionContext, connection);
-    this.process = new AcpProcessService(sessionId, cwd, connection);
+    this.process = new AcpProcessService(sessionId, cwd, connection, local);
   }
 
   dispose(): void {}
@@ -219,13 +218,14 @@ class AcpWorkspaceRuntimeAttachment implements RuntimeProviderAttachment {
     private readonly host: RuntimeProviderHost,
     private readonly connection: IAcpConnection,
     private readonly environment: IHostEnvironment,
+    private readonly local: IHostProcessService,
   ) {}
 
   bindSession(sessionId: string, cwd: string): string {
     const runtimeId = AcpRuntimeProviderFactory.runtimeId(sessionId);
     if (this.sessions.has(sessionId)) return runtimeId;
     const registration = this.host.registerRuntime(
-      new AcpSessionRuntime(this.workspace.id, sessionId, cwd, this.connection, this.environment),
+      new AcpSessionRuntime(this.workspace.id, sessionId, cwd, this.connection, this.environment, this.local),
     );
     this.sessions.set(sessionId, registration);
     return runtimeId;
@@ -253,6 +253,7 @@ export class AcpRuntimeProviderFactory implements RuntimeProviderFactory {
   constructor(
     private readonly connection: IAcpConnection,
     private readonly environment: IHostEnvironment,
+    private readonly local: IHostProcessService,
   ) {}
 
   static runtimeId(sessionId: string): string {
@@ -260,7 +261,7 @@ export class AcpRuntimeProviderFactory implements RuntimeProviderFactory {
   }
 
   async attach(workspace: RuntimeProviderContext, host: RuntimeProviderHost): Promise<RuntimeProviderAttachment> {
-    const attachment = new AcpWorkspaceRuntimeAttachment(workspace, host, this.connection, this.environment);
+    const attachment = new AcpWorkspaceRuntimeAttachment(workspace, host, this.connection, this.environment, this.local);
     this.attachments.set(workspace.id, attachment);
     return {
       dispose: async () => {
diff --git a/packages/acp-server/src/convert.ts b/packages/acp-server/src/convert.ts
index 308d400a0..48c34bff6 100644
--- a/packages/acp-server/src/convert.ts
+++ b/packages/acp-server/src/convert.ts
@@ -176,7 +176,14 @@ export function acpMcpServersToConfigRecord(
   const out: Record<string, McpServerConfig> = {};
   for (const server of servers) {
     if (!('type' in server)) {
-      throw new Error(`ACP stdio MCP server ${server.name} does not declare a runtime identity`);
+      out[server.name] = {
+        transport: 'stdio',
+        command: server.command,
+        args: server.args,
+        env: namedPairsToRecord(server.env),
+        runtime_id: 'local',
+      };
+      continue;
     }
     if (server.type === 'http' || server.type === 'sse') {
       out[server.name] = {
diff --git a/packages/acp-server/src/start.ts b/packages/acp-server/src/start.ts
index 6cf189017..5b60cac57 100644
--- a/packages/acp-server/src/start.ts
+++ b/packages/acp-server/src/start.ts
@@ -26,6 +26,7 @@ import {
   IAgentRuntimeBindingService,
   IAppendLogStore,
   IHostEnvironment,
+  IHostProcessService,
   ISessionContext,
   ISessionIndexMirror,
   IWorkspaceInstanceManager,
@@ -142,7 +143,7 @@ export async function runAcpServerWithStream(
   // `IAcpConnection.get()`.
   acpConnection.bind(client);
   const workspaceManager = core.accessor.get(IWorkspaceInstanceManager);
-  const acpRuntimeProvider = new AcpRuntimeProviderFactory(acpConnection, core.accessor.get(IHostEnvironment));
+  const acpRuntimeProvider = new AcpRuntimeProviderFactory(acpConnection, core.accessor.get(IHostEnvironment), core.accessor.get(IHostProcessService));
   const acpProviderRegistration = await workspaceManager.addProvider(acpRuntimeProvider);
   const sessionWorkspaces = new Map<string, string>();
   server = new AcpServer(client, klient, acpConnection, {
diff --git a/packages/acp-server/test/acp-terminal.test.ts b/packages/acp-server/test/acp-terminal.test.ts
index 675e58c1f..30b83d19f 100644
--- a/packages/acp-server/test/acp-terminal.test.ts
+++ b/packages/acp-server/test/acp-terminal.test.ts
@@ -1,24 +1,29 @@
 import { describe, expect, it } from 'vitest';
 
 import type {
+  HostProcessOptions,
   IHostEnvironment,
+  IHostProcess,
+  IHostProcessService,
   Runtime,
   RuntimeProviderHost,
 } from '@moonshot-ai/agent-core-v2';
 
-import type { IAcpConnection } from '../src/acp-fs/acpConnection';
+import type { IAcpConnection, IAcpTerminalHandle } from '../src/acp-fs/acpConnection';
 import { AcpHostFileSystem } from '../src/acp-fs/acpFsService';
 import { AcpRuntimeProviderFactory } from '../src/acp-terminal/acpTerminalRunner';
 
-function makeConnection(): IAcpConnection {
+function makeConnection(
+  options: { terminalEnabled?: boolean; createTerminal?: () => IAcpTerminalHandle } = {},
+): IAcpConnection {
   return {
     _serviceBrand: undefined,
     bound: true,
     fsReadTextFile: true,
     fsWriteTextFile: true,
-    terminalEnabled: true,
+    terminalEnabled: options.terminalEnabled ?? true,
     bind: () => {},
-    get: () => ({}) as never,
+    get: () => ({ createTerminal: async () => options.createTerminal?.() }) as never,
     bindFsCapabilities: () => {},
     bindTerminalCapability: () => {},
     notifyTerminalCreated: () => {},
@@ -26,6 +31,24 @@ function makeConnection(): IAcpConnection {
   };
 }
 
+interface LocalSpawnCall {
+  readonly command: string;
+  readonly args: readonly string[];
+  readonly options: HostProcessOptions | undefined;
+}
+
+function makeLocalProcessService(): { local: IHostProcessService; calls: LocalSpawnCall[] } {
+  const calls: LocalSpawnCall[] = [];
+  const local: IHostProcessService = {
+    _serviceBrand: undefined,
+    spawn: async (command, args = [], options) => {
+      calls.push({ command, args, options });
+      return {} as IHostProcess;
+    },
+  };
+  return { local, calls };
+}
+
 function makeEnvironment(overrides: Partial<IHostEnvironment> = {}): IHostEnvironment {
   return {
     _serviceBrand: undefined,
@@ -41,7 +64,10 @@ function makeEnvironment(overrides: Partial<IHostEnvironment> = {}): IHostEnviro
   } as IHostEnvironment;
 }
 
-async function bindRuntime(environment: IHostEnvironment): Promise<Runtime> {
+async function bindRuntime(
+  environment: IHostEnvironment,
+  options: { connection?: IAcpConnection; local?: IHostProcessService } = {},
+): Promise<Runtime> {
   const runtimes: Runtime[] = [];
   const host = {
     registerRuntime: (runtime: Runtime) => {
@@ -49,7 +75,11 @@ async function bindRuntime(environment: IHostEnvironment): Promise<Runtime> {
       return { remove: async () => {} };
     },
   } as unknown as RuntimeProviderHost;
-  const factory = new AcpRuntimeProviderFactory(makeConnection(), environment);
+  const factory = new AcpRuntimeProviderFactory(
+    options.connection ?? makeConnection(),
+    environment,
+    options.local ?? makeLocalProcessService().local,
+  );
   await factory.attach({ id: 'w1' } as never, host);
   factory.bindSession('w1', 's1', '/repo');
   const runtime = runtimes[0];
@@ -98,3 +128,69 @@ describe('AcpSessionRuntime', () => {
     expect(runtime.path.resolve('C:\\repo', 'src')).toBe('C:\\repo\\src');
   });
 });
+
+describe('AcpProcessService local fallback', () => {
+  const bashEnv = { NO_COLOR: '1', TERM: 'dumb' };
+
+  function makeTerminalHandle(): IAcpTerminalHandle {
+    return {
+      id: 'term-1',
+      currentOutput: async () => ({ output: '', truncated: false }),
+      waitForExit: async () => ({ exitCode: 0 }),
+      kill: async () => ({}),
+      release: async () => ({}),
+    };
+  }
+
+  it('runs Bash-shaped spawns in the client terminal when the capability is advertised', async () => {
+    let created = 0;
+    const connection = makeConnection({
+      terminalEnabled: true,
+      createTerminal: () => {
+        created += 1;
+        return makeTerminalHandle();
+      },
+    });
+    const { local, calls } = makeLocalProcessService();
+    const runtime = await bindRuntime(makeEnvironment(), { connection, local });
+
+    await runtime.process!.spawn('/bin/bash', ['-c', 'echo hi'], { env: { ...bashEnv } });
+
+    expect(created).toBe(1);
+    expect(calls).toHaveLength(0);
+  });
+
+  it('falls back to local execution for Bash-shaped spawns without the terminal capability', async () => {
+    const connection = makeConnection({ terminalEnabled: false });
+    const { local, calls } = makeLocalProcessService();
+    const runtime = await bindRuntime(makeEnvironment(), { connection, local });
+
+    await runtime.process!.spawn('/bin/bash', ['-c', 'echo hi'], { env: { ...bashEnv } });
+
+    expect(calls).toHaveLength(1);
+    expect(calls[0]).toMatchObject({
+      command: '/bin/bash',
+      args: ['-c', 'echo hi'],
+      options: { env: bashEnv, cwd: '/repo' },
+    });
+  });
+
+  it('falls back to local execution for non-Bash spawns even with the terminal capability', async () => {
+    let created = 0;
+    const connection = makeConnection({
+      terminalEnabled: true,
+      createTerminal: () => {
+        created += 1;
+        return makeTerminalHandle();
+      },
+    });
+    const { local, calls } = makeLocalProcessService();
+    const runtime = await bindRuntime(makeEnvironment(), { connection, local });
+
+    await runtime.process!.spawn('rg', ['--files', '--hidden']);
+
+    expect(created).toBe(0);
+    expect(calls).toHaveLength(1);
+    expect(calls[0]).toMatchObject({ command: 'rg', args: ['--files', '--hidden'], options: { cwd: '/repo' } });
+  });
+});
diff --git a/packages/acp-server/test/convert.test.ts b/packages/acp-server/test/convert.test.ts
index c5a1c490c..5dd8482d2 100644
--- a/packages/acp-server/test/convert.test.ts
+++ b/packages/acp-server/test/convert.test.ts
@@ -19,7 +19,7 @@ describe('acpMcpServersToConfigRecord', () => {
     expect(acpMcpServersToConfigRecord([])).toBeUndefined();
   });
 
-  it('rejects stdio servers that cannot declare a runtime identity', () => {
+  it('maps stdio servers (no type field) to local stdio configs', () => {
     const servers: McpServer[] = [
       {
         name: 'fs',
@@ -31,9 +31,15 @@ describe('acpMcpServersToConfigRecord', () => {
         ],
       },
     ];
-    expect(() => acpMcpServersToConfigRecord(servers)).toThrow(
-      'ACP stdio MCP server fs does not declare a runtime identity',
-    );
+    expect(acpMcpServersToConfigRecord(servers)).toEqual({
+      fs: {
+        transport: 'stdio',
+        command: '/usr/local/bin/mcp-fs',
+        args: ['--root', '/tmp'],
+        env: { API_KEY: 'secret', DEBUG: '1' },
+        runtime_id: 'local',
+      },
+    });
   });
 
   it('maps http and sse servers with header pairs as a record', () => {
diff --git a/packages/acp-server/test/e2e-turn.test.ts b/packages/acp-server/test/e2e-turn.test.ts
index 7202878dc..db4c1e937 100644
--- a/packages/acp-server/test/e2e-turn.test.ts
+++ b/packages/acp-server/test/e2e-turn.test.ts
@@ -991,7 +991,7 @@ describe('acp-server terminal reverse-RPC (clientCapabilities.terminal)', () =>
     expect(JSON.stringify(secondCall)).toContain('hello_from_terminal');
   }, 30_000);
 
-  it('rejects Bash without falling back when the client does not advertise terminal capability', async () => {
+  it('falls back to local execution when the client does not advertise the capability', async () => {
     const c = await boot({});
     const terminals = fakeTerminalClient(c, 'should_not_be_used\n');
     scriptBashTurn('echo hello_from_bash');
@@ -999,7 +999,7 @@ describe('acp-server terminal reverse-RPC (clientCapabilities.terminal)', () =>
     const { stopReason } = await runPrompt(c);
     expect(stopReason).toBe('end_turn');
 
-    // No terminal reverse-RPC at all — behavior identical to today.
+    // No terminal reverse-RPC at all — the command ran locally.
     expect(terminals).toHaveLength(0);
     const terminalRpcs = c.received.filter(
       (m) => typeof m.method === 'string' && m.method.startsWith('terminal/'),
@@ -1009,7 +1009,6 @@ describe('acp-server terminal reverse-RPC (clientCapabilities.terminal)', () =>
     // The tool card carries the textual output, exactly as before.
     const completed = toolCallUpdates(c).find((u) => u.status === 'completed');
     const text = completed?.content?.map((entry) => entry.content?.text ?? '').join('\n') ?? '';
-    expect(text).not.toContain('hello_from_bash');
-    expect(JSON.stringify(scripted!.callHistory()[1])).toContain('ACP terminal capability is unavailable');
+    expect(text).toContain('hello_from_bash');
   }, 30_000);
 });
diff --git a/packages/acp-server/test/lifecycle.test.ts b/packages/acp-server/test/lifecycle.test.ts
index fe124ca8d..5b505203f 100644
--- a/packages/acp-server/test/lifecycle.test.ts
+++ b/packages/acp-server/test/lifecycle.test.ts
@@ -291,10 +291,10 @@ describe('acp-server session lifecycle', () => {
   );
 
   it(
-    'session/new rejects stdio MCP servers without runtime identity',
+    'session/new connects ACP mcpServers as ephemeral session servers',
     async () => {
       const c = await boot();
-      await expect(c.send('session/new', {
+      const created = (await c.send('session/new', {
         cwd: homeDir,
         mcpServers: [
           {
@@ -304,16 +304,19 @@ describe('acp-server session lifecycle', () => {
             env: [{ name: 'KIMI_TEST_MCP_START_DELAY_MS', value: '0' }],
           },
         ],
-      })).rejects.toThrow('ACP stdio MCP server mock does not declare a runtime identity');
+      })) as { sessionId: string };
+      expect(created.sessionId).toMatch(/^session_/);
 
       // Engine-side assertion: the session scope's MCP handle is the overlay
       // view and the converted server ended up connected under its ACP name.
+      const entries = await sessionMcpEntries(c, created.sessionId);
+      expect(entries.find((e) => e.name === 'mock')?.status).toBe('connected');
     },
     30_000,
   );
 
   it(
-    'session/load rejects stdio MCP servers without runtime identity',
+    'session/load forwards mcpServers to the re-materialized session',
     async () => {
       const c = await boot();
       const created = (await c.send('session/new', { cwd: homeDir, mcpServers: [] })) as {
@@ -321,13 +324,16 @@ describe('acp-server session lifecycle', () => {
       };
       await c.send('session/close', { sessionId: created.sessionId });
 
-      await expect(c.send('session/load', {
+      await c.send('session/load', {
         sessionId: created.sessionId,
         cwd: homeDir,
         mcpServers: [
           { name: 'mock', command: process.execPath, args: [STDIO_MCP_FIXTURE], env: [] },
         ],
-      })).rejects.toThrow('ACP stdio MCP server mock does not declare a runtime identity');
+      });
+
+      const entries = await sessionMcpEntries(c, created.sessionId);
+      expect(entries.find((e) => e.name === 'mock')?.status).toBe('connected');
     },
     30_000,
   );
diff --git a/packages/agent-core-v2/src/runtime/runtimeUnitHost.ts b/packages/agent-core-v2/src/runtime/runtimeUnitHost.ts
index 9554fbff4..2d750f658 100644
--- a/packages/agent-core-v2/src/runtime/runtimeUnitHost.ts
+++ b/packages/agent-core-v2/src/runtime/runtimeUnitHost.ts
@@ -304,7 +304,14 @@ class SharedRuntimeUnitHost implements RuntimeUnitHost {
         const handle: RuntimeProviderRuntimeHandle = {
           runtimeId: runtime.identity.runtimeId,
           update: (replacement) => this.updateRuntime(staged, replacement),
-          remove: () => this.removeRuntime(staged),
+          remove: async () => {
+            try {
+              await this.removeRuntime(staged);
+            } finally {
+              const index = runtimes.indexOf(staged);
+              if (index >= 0) runtimes.splice(index, 1);
+            }
+          },
         };
         return handle;
       },
diff --git a/packages/agent-core-v2/test/runtime/runtimeUnitHost.test.ts b/packages/agent-core-v2/test/runtime/runtimeUnitHost.test.ts
index 9b9eec0e4..9bcbbc542 100644
--- a/packages/agent-core-v2/test/runtime/runtimeUnitHost.test.ts
+++ b/packages/agent-core-v2/test/runtime/runtimeUnitHost.test.ts
@@ -225,6 +225,56 @@ describe('RuntimeUnitHost', () => {
     disposables.dispose();
   });
 
+  it('re-registers the same runtime id after its registration was removed', async () => {
+    const { disposables, host, registry } = setup();
+    let providerHost!: RuntimeProviderHost;
+    const handle = await host.provide(emptyImports(), async (provider) => {
+      providerHost = provider;
+      return { dispose: () => {} };
+    });
+
+    const first = runtime('one');
+    const registration = providerHost.registerRuntime(first);
+    await registration.remove();
+    expect(registry.current('local')).toBeUndefined();
+
+    const second = runtime('two');
+    providerHost.registerRuntime(second);
+    expect(registry.current('local')).toBe(second);
+
+    await handle.remove();
+    expect(registry.current('local')).toBeUndefined();
+    expect(second.disposed).toBe(true);
+    await host.dispose();
+    disposables.dispose();
+  });
+
+  it('re-registers the same runtime id even when removal teardown fails', async () => {
+    const { disposables, host, registry } = setup();
+    let providerHost!: RuntimeProviderHost;
+    const handle = await host.provide(emptyImports(), async (provider) => {
+      providerHost = provider;
+      return { dispose: () => {} };
+    });
+
+    const failing = runtime('one');
+    failing.dispose = () => {
+      throw new Error('boom');
+    };
+    const registration = providerHost.registerRuntime(failing);
+    await expect(registration.remove()).rejects.toThrow('boom');
+    expect(registry.current('local')).toBeUndefined();
+
+    const second = runtime('two');
+    providerHost.registerRuntime(second);
+    expect(registry.current('local')).toBe(second);
+
+    await handle.remove();
+    expect(registry.current('local')).toBeUndefined();
+    await host.dispose();
+    disposables.dispose();
+  });
+
   it('waits for in-flight prepare, rejects new transactions, and tears down in reverse order', async () => {
     const { disposables, host } = setup();
     const order: string[] = [];