diff --git a/CLAUDE.md b/CLAUDE.md
index 851dd8f..2d60848 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -154,8 +154,8 @@ The `prompts/` directory contains specialized prompt templates for each testing
 - `exploit-*.txt` - Exploitation attempt prompts
 - `report-executive.txt` - Executive report generation prompts
 
-### Claude Code SDK Integration
-The agent uses the `@anthropic-ai/claude-code` SDK with maximum autonomy configuration:
+### Claude Agent SDK Integration
+The agent uses the `@anthropic-ai/claude-agent-sdk` with maximum autonomy configuration:
 - `maxTurns: 10_000` - Allows extensive autonomous analysis
 - `permissionMode: 'bypassPermissions'` - Full system access for thorough testing
 - Playwright MCP integration for web browser automation
@@ -235,7 +235,7 @@ For detailed design, see `docs/unified-audit-system-design.md`.
 - **Configuration-Driven Architecture**: YAML configs with JSON Schema validation
 - **Modular Error Handling**: Categorized error types with retry logic
 - **Pure Functions**: Most functionality is implemented as pure functions for testability
-- **SDK-First Approach**: Heavy reliance on Claude Code SDK for autonomous AI operations
+- **SDK-First Approach**: Heavy reliance on Claude Agent SDK for autonomous AI operations
 - **Progressive Analysis**: Each phase builds on previous phase results
 - **Local Repository Setup**: Target applications are accessed directly from user-provided local directories
 
@@ -278,7 +278,7 @@ src/                             # Core modules
 ├── checkpoint-manager.js        # Git-based checkpointing + rollback
 ├── queue-validation.js          # Deliverable validation
 ├── ai/
-│   └── claude-executor.js       # Claude Code SDK integration
+│   └── claude-executor.js       # Claude Agent SDK integration
 └── utils/
 audit-logs/                      # Centralized audit data (v3.0)
 └── {hostname}_{sessionId}/
diff --git a/Dockerfile b/Dockerfile
index 1d35f1c..3933e7e 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -97,7 +97,7 @@ COPY package*.json ./
 # Install Node.js dependencies as root
 RUN npm ci --only=production && \
     npm install -g zx && \
-    npm install -g @anthropic-ai/claude-code && \
+    npm install -g @anthropic-ai/claude-agent-sdk && \
     npm cache clean --force
 
 # Copy application code
diff --git a/mcp-server/package-lock.json b/mcp-server/package-lock.json
index 68803f2..38044b8 100644
--- a/mcp-server/package-lock.json
+++ b/mcp-server/package-lock.json
@@ -8,18 +8,15 @@
       "name": "@shannon/mcp-server",
       "version": "1.0.0",
       "dependencies": {
-        "@anthropic-ai/claude-code": "^1.0.96",
+        "@anthropic-ai/claude-agent-sdk": "^0.1.0",
         "zod": "^3.22.4"
       }
     },
-    "node_modules/@anthropic-ai/claude-code": {
-      "version": "1.0.128",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-code/-/claude-code-1.0.128.tgz",
-      "integrity": "sha512-uUg5cFMJfeQetQzFw76Vpbro6DAXst2Lpu8aoZWRFSoQVYu5ZSAnbBoxaWmW/IgnHSqIIvtMwzCoqmcA9j9rNQ==",
+    "node_modules/@anthropic-ai/claude-agent-sdk": {
+      "version": "0.1.25",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk/-/claude-agent-sdk-0.1.25.tgz",
+      "integrity": "sha512-qwuydYaA3uamz4ivDzYXfL2PBjGwc0+beeIyo3nvtZQOtFLjH7xPdBK2w3+9KnB3L6V7VooAMdTXPpQyxCwcOg==",
       "license": "SEE LICENSE IN README.md",
-      "bin": {
-        "claude": "cli.js"
-      },
       "engines": {
         "node": ">=18.0.0"
       },
@@ -30,6 +27,9 @@
         "@img/sharp-linux-arm64": "^0.33.5",
         "@img/sharp-linux-x64": "^0.33.5",
         "@img/sharp-win32-x64": "^0.33.5"
+      },
+      "peerDependencies": {
+        "zod": "^3.24.1"
       }
     },
     "node_modules/@img/sharp-darwin-arm64": {
diff --git a/package-lock.json b/package-lock.json
index b3777f8..9266c5b 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -9,7 +9,6 @@
       "version": "1.0.0",
       "dependencies": {
         "@anthropic-ai/claude-agent-sdk": "^0.1.0",
-        "@anthropic-ai/claude-code": "^1.0.96",
         "ajv": "^8.12.0",
         "ajv-formats": "^2.1.1",
         "boxen": "^8.0.1",
@@ -44,26 +43,6 @@
         "zod": "^3.24.1"
       }
     },
-    "node_modules/@anthropic-ai/claude-code": {
-      "version": "1.0.96",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-code/-/claude-code-1.0.96.tgz",
-      "integrity": "sha512-xnxhYzuh6PYlMcw56REMQiGMW20WaLLOvG8L8TObq70zhNKs3dro7nhYwHRe1c2ubTr20oIJK0aSkyD2BpO8nA==",
-      "license": "SEE LICENSE IN README.md",
-      "bin": {
-        "claude": "cli.js"
-      },
-      "engines": {
-        "node": ">=18.0.0"
-      },
-      "optionalDependencies": {
-        "@img/sharp-darwin-arm64": "^0.33.5",
-        "@img/sharp-darwin-x64": "^0.33.5",
-        "@img/sharp-linux-arm": "^0.33.5",
-        "@img/sharp-linux-arm64": "^0.33.5",
-        "@img/sharp-linux-x64": "^0.33.5",
-        "@img/sharp-win32-x64": "^0.33.5"
-      }
-    },
     "node_modules/@img/sharp-darwin-arm64": {
       "version": "0.33.5",
       "resolved": "https://registry.npmjs.org/@img/sharp-darwin-arm64/-/sharp-darwin-arm64-0.33.5.tgz",
diff --git a/package.json b/package.json
index 055af80..bb8b699 100644
--- a/package.json
+++ b/package.json
@@ -7,7 +7,6 @@
     "start": "./shannon.mjs"
   },
   "dependencies": {
-    "@anthropic-ai/claude-code": "^1.0.96",
     "@anthropic-ai/claude-agent-sdk": "^0.1.0",
     "ajv": "^8.12.0",
     "ajv-formats": "^2.1.1",