diff --git a/.copilotignore b/.copilotignore
new file mode 100644
index 0000000..561d421
--- /dev/null
+++ b/.copilotignore
@@ -0,0 +1,12 @@
+# Repo-specific Copilot exclusions
+# Note: .env exclusions are managed at org level.
+# Core source folders (lib/, test/, config/) are intentionally included.
+
+# Test fixture with hardcoded CAP XML body - avoids Copilot suggesting literal XML
+config/cap.json
+
+# Historical release notes - no coding value for indexing
+docs/
+
+# Dependency directory
+node_modules/