diff --git a/src/claude_agent_sdk/_internal/query.py b/src/claude_agent_sdk/_internal/query.py
index 60c04083..be6f32b4 100644
--- a/src/claude_agent_sdk/_internal/query.py
+++ b/src/claude_agent_sdk/_internal/query.py
@@ -19,6 +19,7 @@
     PermissionMode,
     PermissionResultAllow,
     PermissionResultDeny,
+    PermissionUpdate,
     SDKControlPermissionRequest,
     SDKControlRequest,
     SDKControlResponse,
@@ -350,8 +351,12 @@ async def _handle_control_request(self, request: SDKControlRequest) -> None:
 
                 context = ToolPermissionContext(
                     signal=None,  # TODO: Add abort signal support
-                    suggestions=permission_request.get("permission_suggestions", [])
-                    or [],
+                    suggestions=[
+                        PermissionUpdate.from_dict(s)
+                        for s in (
+                            permission_request.get("permission_suggestions") or []
+                        )
+                    ],
                     tool_use_id=permission_request.get("tool_use_id"),
                     agent_id=permission_request.get("agent_id"),
                     blocked_path=permission_request.get("blocked_path"),
diff --git a/src/claude_agent_sdk/types.py b/src/claude_agent_sdk/types.py
index 202535df..1fac8475 100644
--- a/src/claude_agent_sdk/types.py
+++ b/src/claude_agent_sdk/types.py
@@ -169,6 +169,27 @@ def to_dict(self) -> dict[str, Any]:
 
         return result
 
+    @classmethod
+    def from_dict(cls, data: dict[str, Any]) -> "PermissionUpdate":
+        """Construct a PermissionUpdate from the control protocol dict format (inverse of to_dict)."""
+        rules = None
+        if data.get("rules") is not None:
+            rules = [
+                PermissionRuleValue(
+                    tool_name=r["toolName"],
+                    rule_content=r.get("ruleContent"),
+                )
+                for r in data["rules"]
+            ]
+        return cls(
+            type=data["type"],
+            rules=rules,
+            behavior=data.get("behavior"),
+            mode=data.get("mode"),
+            directories=data.get("directories"),
+            destination=data.get("destination"),
+        )
+
 
 # Tool callback types
 @dataclass
diff --git a/tests/test_tool_callbacks.py b/tests/test_tool_callbacks.py
index f25dd5a5..f0c30dcf 100644
--- a/tests/test_tool_callbacks.py
+++ b/tests/test_tool_callbacks.py
@@ -97,6 +97,58 @@ async def allow_callback(
         response = transport.written_messages[0]
         assert '"behavior": "allow"' in response
 
+    @pytest.mark.asyncio
+    async def test_permission_callback_suggestions_roundtrip(self):
+        """Suggestions arrive as PermissionUpdate instances and can be echoed back."""
+        from claude_agent_sdk.types import PermissionUpdate
+
+        seen_suggestions: list[Any] = []
+
+        async def always_allow(
+            tool_name: str, input_data: dict, context: ToolPermissionContext
+        ) -> PermissionResultAllow:
+            seen_suggestions.extend(context.suggestions)
+            persist = [
+                s for s in context.suggestions if s.destination == "localSettings"
+            ]
+            return PermissionResultAllow(updated_permissions=persist)
+
+        transport = MockTransport()
+        query = Query(
+            transport=transport,
+            is_streaming_mode=True,
+            can_use_tool=always_allow,
+            hooks=None,
+        )
+
+        wire_suggestion = {
+            "type": "addRules",
+            "destination": "localSettings",
+            "behavior": "allow",
+            "rules": [{"toolName": "Bash", "ruleContent": "git status"}],
+        }
+        request = {
+            "type": "control_request",
+            "request_id": "test-roundtrip",
+            "request": {
+                "subtype": "can_use_tool",
+                "tool_name": "Bash",
+                "input": {"command": "git status"},
+                "permission_suggestions": [wire_suggestion],
+            },
+        }
+
+        await query._handle_control_request(request)
+
+        assert len(seen_suggestions) == 1
+        assert isinstance(seen_suggestions[0], PermissionUpdate)
+        assert seen_suggestions[0].destination == "localSettings"
+
+        assert len(transport.written_messages) == 1
+        response = json.loads(transport.written_messages[0])
+        sent = response["response"]["response"]["updatedPermissions"]
+        assert sent == [wire_suggestion]
+
     @pytest.mark.asyncio
     async def test_permission_callback_deny(self):
         """Test callback that denies tool execution."""
@@ -121,7 +173,7 @@ async def deny_callback(
                 "subtype": "can_use_tool",
                 "tool_name": "DangerousTool",
                 "input": {"command": "rm -rf /"},
-                "permission_suggestions": ["deny"],
+                "permission_suggestions": [],
             },
         }
 
diff --git a/tests/test_types.py b/tests/test_types.py
index d5f96c38..fa0f5f53 100644
--- a/tests/test_types.py
+++ b/tests/test_types.py
@@ -12,6 +12,8 @@
     SubagentStartHookSpecificOutput,
 )
 from claude_agent_sdk.types import (
+    PermissionRuleValue,
+    PermissionUpdate,
     PostToolUseHookSpecificOutput,
     PreToolUseHookSpecificOutput,
     TextBlock,
@@ -22,6 +24,47 @@
 )
 
 
+class TestPermissionUpdate:
+    """Test PermissionUpdate wire-format conversion."""
+
+    def test_from_dict_to_dict_roundtrip_add_rules(self):
+        wire = {
+            "type": "addRules",
+            "destination": "localSettings",
+            "behavior": "allow",
+            "rules": [
+                {"toolName": "Bash", "ruleContent": "npm *"},
+                {"toolName": "Read", "ruleContent": None},
+            ],
+        }
+        update = PermissionUpdate.from_dict(wire)
+        assert update.type == "addRules"
+        assert update.destination == "localSettings"
+        assert update.behavior == "allow"
+        assert update.rules == [
+            PermissionRuleValue(tool_name="Bash", rule_content="npm *"),
+            PermissionRuleValue(tool_name="Read", rule_content=None),
+        ]
+        assert update.to_dict() == wire
+
+    def test_from_dict_set_mode(self):
+        wire = {"type": "setMode", "mode": "acceptEdits", "destination": "session"}
+        update = PermissionUpdate.from_dict(wire)
+        assert update.mode == "acceptEdits"
+        assert update.rules is None
+        assert update.to_dict() == wire
+
+    def test_from_dict_directories(self):
+        wire = {
+            "type": "addDirectories",
+            "directories": ["/tmp/a", "/tmp/b"],
+            "destination": "userSettings",
+        }
+        update = PermissionUpdate.from_dict(wire)
+        assert update.directories == ["/tmp/a", "/tmp/b"]
+        assert update.to_dict() == wire
+
+
 class TestMessageTypes:
     """Test message type creation and validation."""