Context Engineering for AI Agents: Compaction, External Memory, and Subagents
Learn to treat your agent's context window as the finite resource it is: the four levers of context engineering (write, select, compress, isolate), compaction with structured summaries, persistent memory outside the context, just-in-time retrieval, subagents with isolated windows, and tool-result hygiene. With production-ready Python code and the mistakes that silently degrade your agent. New expansion: the context-failure taxonomy (poisoning, distraction, confusion, clash), reasoning budgets with interleaved extended thinking, the real cost of multimodal context, managed memory (Letta, Zep, mem0), effective context length per RULER, and multi-agent handoffs with structured payloads. Latest expansion: the positional anatomy of context (lost in the middle and cache-aware placement), isolating untrusted content by design with Dual-LLM and CaMeL, and generating outputs longer than the window with outlines, rolling summaries, and patch-based revision. August extension: per-section token budgets with a degradation ladder, prompt compression with LLMLingua, semantic retrieval deduplication, self-hosted KV cache (vLLM and SGLang) with cache-aware routing, and memory evaluation with LongMemEval.