diff --git a/src/claude_agent_sdk/_internal/client.py b/src/claude_agent_sdk/_internal/client.py
index 6127ba56..76323323 100644
--- a/src/claude_agent_sdk/_internal/client.py
+++ b/src/claude_agent_sdk/_internal/client.py
@@ -91,6 +91,15 @@ async def process_query(
                 if isinstance(config, dict) and config.get("type") == "sdk":
                     sdk_mcp_servers[name] = config["instance"]  # type: ignore[typeddict-item]
 
+        # Extract exclude_dynamic_sections from preset system prompt for the
+        # initialize request (older CLIs ignore unknown initialize fields).
+        exclude_dynamic_sections: bool | None = None
+        sp = configured_options.system_prompt
+        if isinstance(sp, dict) and sp.get("type") == "preset":
+            eds = sp.get("exclude_dynamic_sections")
+            if isinstance(eds, bool):
+                exclude_dynamic_sections = eds
+
         # Convert agents to dict format for initialize request
         agents_dict = None
         if configured_options.agents:
@@ -118,6 +127,7 @@ async def process_query(
             sdk_mcp_servers=sdk_mcp_servers,
             initialize_timeout=initialize_timeout,
             agents=agents_dict,
+            exclude_dynamic_sections=exclude_dynamic_sections,
         )
 
         try:
diff --git a/src/claude_agent_sdk/_internal/query.py b/src/claude_agent_sdk/_internal/query.py
index 81eca07f..80b6d93c 100644
--- a/src/claude_agent_sdk/_internal/query.py
+++ b/src/claude_agent_sdk/_internal/query.py
@@ -76,6 +76,7 @@ def __init__(
         sdk_mcp_servers: dict[str, "McpServer"] | None = None,
         initialize_timeout: float = 60.0,
         agents: dict[str, dict[str, Any]] | None = None,
+        exclude_dynamic_sections: bool | None = None,
     ):
         """Initialize Query with transport and callbacks.
 
@@ -87,6 +88,8 @@ def __init__(
             sdk_mcp_servers: Optional SDK MCP server instances
             initialize_timeout: Timeout in seconds for the initialize request
             agents: Optional agent definitions to send via initialize
+            exclude_dynamic_sections: Optional preset-prompt flag to send via
+                initialize (see ``SystemPromptPreset``)
         """
         self._initialize_timeout = initialize_timeout
         self.transport = transport
@@ -95,6 +98,7 @@ def __init__(
         self.hooks = hooks or {}
         self.sdk_mcp_servers = sdk_mcp_servers or {}
         self._agents = agents
+        self._exclude_dynamic_sections = exclude_dynamic_sections
 
         # Control protocol state
         self.pending_control_responses: dict[str, anyio.Event] = {}
@@ -154,6 +158,8 @@ async def initialize(self) -> dict[str, Any] | None:
         }
         if self._agents:
             request["agents"] = self._agents
+        if self._exclude_dynamic_sections is not None:
+            request["excludeDynamicSections"] = self._exclude_dynamic_sections
 
         # Use longer timeout for initialize since MCP servers may take time to start
         response = await self._send_control_request(
diff --git a/src/claude_agent_sdk/client.py b/src/claude_agent_sdk/client.py
index aaa9ab67..64f845fb 100644
--- a/src/claude_agent_sdk/client.py
+++ b/src/claude_agent_sdk/client.py
@@ -157,6 +157,15 @@ async def _empty_stream() -> AsyncIterator[dict[str, Any]]:
         )
         initialize_timeout = max(initialize_timeout_ms / 1000.0, 60.0)
 
+        # Extract exclude_dynamic_sections from preset system prompt for the
+        # initialize request (older CLIs ignore unknown initialize fields).
+        exclude_dynamic_sections: bool | None = None
+        sp = self.options.system_prompt
+        if isinstance(sp, dict) and sp.get("type") == "preset":
+            eds = sp.get("exclude_dynamic_sections")
+            if isinstance(eds, bool):
+                exclude_dynamic_sections = eds
+
         # Convert agents to dict format for initialize request
         agents_dict: dict[str, dict[str, Any]] | None = None
         if self.options.agents:
@@ -176,6 +185,7 @@ async def _empty_stream() -> AsyncIterator[dict[str, Any]]:
             sdk_mcp_servers=sdk_mcp_servers,
             initialize_timeout=initialize_timeout,
             agents=agents_dict,
+            exclude_dynamic_sections=exclude_dynamic_sections,
         )
 
         # Start reading messages and initialize
diff --git a/src/claude_agent_sdk/types.py b/src/claude_agent_sdk/types.py
index fca39dcd..a82a8b9b 100644
--- a/src/claude_agent_sdk/types.py
+++ b/src/claude_agent_sdk/types.py
@@ -38,6 +38,18 @@ class SystemPromptPreset(TypedDict):
     type: Literal["preset"]
     preset: Literal["claude_code"]
     append: NotRequired[str]
+    exclude_dynamic_sections: NotRequired[bool]
+    """Strip per-user dynamic sections (working directory, auto-memory, git
+    status) from the system prompt so it stays static and cacheable across
+    users. The stripped content is re-injected into the first user message
+    so the model still has access to it.
+
+    Use this when many users share the same preset system prompt and you
+    want the prompt-caching prefix to hit cross-user.
+
+    Requires a Claude Code CLI version that supports this option; older
+    CLIs silently ignore it.
+    """
 
 
 class SystemPromptFile(TypedDict):
diff --git a/tests/test_query.py b/tests/test_query.py
index d0cece38..30e51c09 100644
--- a/tests/test_query.py
+++ b/tests/test_query.py
@@ -25,6 +25,40 @@
 from claude_agent_sdk.types import HookMatcher
 
 
+def _capture_initialize_request(**query_kwargs):
+    """Run Query.initialize() with a stubbed control channel and return the request dict."""
+    captured: dict = {}
+
+    async def _run():
+        transport = AsyncMock()
+        transport.is_ready = Mock(return_value=True)
+        q = Query(transport=transport, is_streaming_mode=True, **query_kwargs)
+
+        async def fake_send(request, timeout):
+            captured.update(request)
+            return {"commands": []}
+
+        with patch.object(q, "_send_control_request", side_effect=fake_send):
+            await q.initialize()
+
+    anyio.run(_run)
+    return captured
+
+
+def test_initialize_sends_exclude_dynamic_sections():
+    """Query.initialize() includes excludeDynamicSections in the control request."""
+    sent = _capture_initialize_request(exclude_dynamic_sections=True)
+    assert sent["subtype"] == "initialize"
+    assert sent["excludeDynamicSections"] is True
+
+
+def test_initialize_omits_exclude_dynamic_sections_when_unset():
+    """excludeDynamicSections is absent from initialize when not configured."""
+    sent = _capture_initialize_request()
+    assert sent["subtype"] == "initialize"
+    assert "excludeDynamicSections" not in sent
+
+
 def _make_mock_transport(messages, control_requests=None):
     """Create a mock transport that yields messages and optionally sends control requests.
 
diff --git a/tests/test_types.py b/tests/test_types.py
index 47d3584f..fbd07509 100644
--- a/tests/test_types.py
+++ b/tests/test_types.py
@@ -150,6 +150,23 @@ def test_claude_code_options_with_system_prompt_preset_and_append(self):
             "append": "Be concise.",
         }
 
+    def test_claude_code_options_with_system_prompt_preset_exclude_dynamic_sections(
+        self,
+    ):
+        """Test Options with system prompt preset and exclude_dynamic_sections."""
+        options = ClaudeAgentOptions(
+            system_prompt={
+                "type": "preset",
+                "preset": "claude_code",
+                "exclude_dynamic_sections": True,
+            },
+        )
+        assert options.system_prompt == {
+            "type": "preset",
+            "preset": "claude_code",
+            "exclude_dynamic_sections": True,
+        }
+
     def test_claude_code_options_with_system_prompt_file(self):
         """Test Options with system prompt file."""
         options = ClaudeAgentOptions(