diff --git a/src/index.ts b/src/index.ts
index b93d8cc..7fe67c2 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -254,6 +254,8 @@ export async function create({
   });
 
   const packageRoot = path.resolve(__dirname, '..');
+  const agentsMdSearchDirs = [srcFolder, commonFolder];
+
   for (const tool of tools) {
     const toolFolder = path.join(packageRoot, `template-${tool}`);
 
@@ -275,6 +277,8 @@ export async function create({
         isMergePackageJson: true,
       });
 
+      agentsMdSearchDirs.push(toolFolder);
+      agentsMdSearchDirs.push(subFolder);
       continue;
     }
 
@@ -286,6 +290,8 @@ export async function create({
       isMergePackageJson: true,
     });
 
+    agentsMdSearchDirs.push(toolFolder);
+
     if (tool === 'biome') {
       await fs.promises.rename(
         path.join(distFolder, 'biome.json.template'),
@@ -294,6 +300,13 @@ export async function create({
     }
   }
 
+  const agentsFiles = collectAgentsFiles(agentsMdSearchDirs);
+  if (agentsFiles.length > 0) {
+    const mergedAgents = mergeAgentsFiles(agentsFiles);
+    const agentsPath = path.join(distFolder, 'AGENTS.md');
+    fs.writeFileSync(agentsPath, `${mergedAgents}\n`);
+  }
+
   const nextSteps = noteInformation
     ? noteInformation
     : [
@@ -460,3 +473,105 @@ const updatePackageJson = (
 
   fs.writeFileSync(pkgJsonPath, `${JSON.stringify(pkg, null, 2)}\n`);
 };
+
+/**
+ * Read AGENTS.md files from template directories
+ */
+function readAgentsFile(filePath: string): string | null {
+  if (!fs.existsSync(filePath)) {
+    return null;
+  }
+  return fs.readFileSync(filePath, 'utf-8');
+}
+
+/**
+ * Parse AGENTS.md content and extract sections
+ */
+function parseAgentsContent(
+  content: string,
+): Record<string, { title: string; content: string }> {
+  const sections: Record<string, { title: string; content: string }> = {};
+  const lines = content.split('\n');
+  let currentKey = '';
+  let currentTitle = '';
+  let currentContent: string[] = [];
+
+  for (const line of lines) {
+    const sectionMatch = line.match(/^##\s+(.+)$/);
+    if (sectionMatch) {
+      if (currentKey) {
+        sections[currentKey] = {
+          title: currentTitle,
+          content: currentContent.join('\n').trim(),
+        };
+      }
+      currentTitle = sectionMatch[1];
+      currentKey = sectionMatch[1].toLowerCase();
+      currentContent = [];
+    } else if (currentKey) {
+      currentContent.push(line);
+    }
+  }
+
+  if (currentKey) {
+    sections[currentKey] = {
+      title: currentTitle,
+      content: currentContent.join('\n').trim(),
+    };
+  }
+
+  return sections;
+}
+
+/**
+ * Merge AGENTS.md files from multiple sources
+ */
+function mergeAgentsFiles(agentsFiles: string[]): string {
+  const allSections: Record<string, { title: string; contents: string[] }> = {};
+
+  for (const fileContent of agentsFiles) {
+    if (!fileContent) continue;
+    const sections = parseAgentsContent(fileContent);
+
+    for (const [key, section] of Object.entries(sections)) {
+      if (!allSections[key]) {
+        allSections[key] = { title: section.title, contents: [] };
+      }
+      if (
+        section.content &&
+        !allSections[key].contents.includes(section.content)
+      ) {
+        allSections[key].contents.push(section.content);
+      }
+    }
+  }
+
+  const result: string[] = [];
+
+  for (const [, section] of Object.entries(allSections)) {
+    result.push(`## ${section.title}`);
+    result.push('');
+    for (const content of section.contents) {
+      result.push(content);
+      result.push('');
+    }
+  }
+
+  return result.join('\n').trim();
+}
+
+/**
+ * Collect AGENTS.md files from template directories
+ */
+function collectAgentsFiles(agentsMdSearchDirs: string[]): string[] {
+  const agentsFiles: string[] = [];
+
+  for (const dir of agentsMdSearchDirs) {
+    const agentsContent = readAgentsFile(path.join(dir, 'AGENTS.md'));
+    if (agentsContent) {
+      agentsFiles.push(agentsContent);
+    }
+  }
+
+  return agentsFiles;
+}
diff --git a/template-biome/AGENTS.md b/template-biome/AGENTS.md
new file mode 100644
index 0000000..c26c433
--- /dev/null
+++ b/template-biome/AGENTS.md
@@ -0,0 +1,6 @@
+## Tools
+
+### Biome
+
+- Run `npm run lint` to lint your code
+- Run `npm run format` to format your code
diff --git a/template-eslint/AGENTS.md b/template-eslint/AGENTS.md
new file mode 100644
index 0000000..2226fc4
--- /dev/null
+++ b/template-eslint/AGENTS.md
@@ -0,0 +1,5 @@
+## Tools
+
+### ESLint
+
+- Run `npm run lint` to lint your code
diff --git a/template-prettier/AGENTS.md b/template-prettier/AGENTS.md
new file mode 100644
index 0000000..7b57953
--- /dev/null
+++ b/template-prettier/AGENTS.md
@@ -0,0 +1,5 @@
+## Tools
+
+### Prettier
+
+- Run `npm run format` to format your code
diff --git a/test/agents.test.ts b/test/agents.test.ts
new file mode 100644
index 0000000..c2d9367
--- /dev/null
+++ b/test/agents.test.ts
@@ -0,0 +1,118 @@
+import fs from 'node:fs';
+import path from 'node:path';
+import { fileURLToPath } from 'node:url';
+import { assert, beforeEach, test } from '@rstest/core';
+import { create } from '../dist/index.js';
+
+const __dirname = path.dirname(fileURLToPath(import.meta.url));
+const testDir = path.join(__dirname, 'temp');
+const fixturesDir = path.join(__dirname, 'fixtures', 'agents-md');
+
+beforeEach(() => {
+  // Clean up test directory before each test
+  if (fs.existsSync(testDir)) {
+    fs.rmSync(testDir, { recursive: true });
+  }
+  fs.mkdirSync(testDir, { recursive: true });
+
+  // Store original argv
+  const originalArgv = process.argv;
+
+  // Return cleanup function
+  return () => {
+    // Restore original argv and clean up
+    process.argv = originalArgv;
+    if (fs.existsSync(testDir)) {
+      fs.rmSync(testDir, { recursive: true });
+    }
+  };
+});
+
+test('should generate AGENTS.md with no tools selected', async () => {
+  const projectDir = path.join(testDir, 'no-tools');
+  process.argv = ['node', 'test', '--dir', projectDir, '--template', 'vanilla'];
+
+  await create({
+    name: 'test',
+    root: fixturesDir,
+    templates: ['vanilla'],
+    getTemplateName: async () => 'vanilla',
+    mapESLintTemplate: () => null,
+  });
+
+  const agentsPath = path.join(projectDir, 'AGENTS.md');
+  assert.strictEqual(fs.existsSync(agentsPath), true);
+
+  const content = fs.readFileSync(agentsPath, 'utf-8');
+  assert.match(content, /## Template Info/);
+  assert.match(content, /## Development/);
+  // template-common has Tools section
+  assert.match(content, /## Tools/);
+  assert.match(content, /### Common Tools/);
+});
+
+test('should generate AGENTS.md with single tool selected', async () => {
+  const projectDir = path.join(testDir, 'single-tool');
+  process.argv = [
+    'node',
+    'test',
+    '--dir',
+    projectDir,
+    '--template',
+    'vanilla',
+    '--tools',
+    'biome',
+  ];
+
+  await create({
+    name: 'test',
+    root: fixturesDir,
+    templates: ['vanilla'],
+    getTemplateName: async () => 'vanilla',
+    mapESLintTemplate: () => null,
+  });
+
+  const agentsPath = path.join(projectDir, 'AGENTS.md');
+  assert.strictEqual(fs.existsSync(agentsPath), true);
+
+  const content = fs.readFileSync(agentsPath, 'utf-8');
+  assert.match(content, /## Template Info/);
+  assert.match(content, /## Development/);
+  assert.match(content, /## Tools/);
+  assert.match(content, /### Common Tools/); // from template-common
+  assert.match(content, /### Biome/); // from template-biome
+});
+
+test('should generate AGENTS.md with eslint tool and template mapping', async () => {
+  const projectDir = path.join(testDir, 'eslint-tool');
+  process.argv = [
+    'node',
+    'test',
+    '--dir',
+    projectDir,
+    '--template',
+    'vanilla',
+    '--tools',
+    'eslint',
+  ];
+
+  await create({
+    name: 'test',
+    root: fixturesDir,
+    templates: ['vanilla'],
+    getTemplateName: async () => 'vanilla',
+    mapESLintTemplate: (templateName) => {
+      if (templateName === 'vanilla') return 'vanilla-ts';
+      return null;
+    },
+  });
+
+  const agentsPath = path.join(projectDir, 'AGENTS.md');
+  assert.strictEqual(fs.existsSync(agentsPath), true);
+
+  const content = fs.readFileSync(agentsPath, 'utf-8');
+  assert.match(content, /## Template Info/);
+  assert.match(content, /## Development/);
+  assert.match(content, /## Tools/);
+  assert.match(content, /### ESLint/); // from template-eslint/AGENTS.md
+});
diff --git a/test/fixtures/agents-md/package.json b/test/fixtures/agents-md/package.json
new file mode 100644
index 0000000..f8e753d
--- /dev/null
+++ b/test/fixtures/agents-md/package.json
@@ -0,0 +1,4 @@
+{
+  "name": "test-fixtures-agents-md",
+  "version": "1.0.0"
+}
diff --git a/test/fixtures/agents-md/template-common/AGENTS.md b/test/fixtures/agents-md/template-common/AGENTS.md
new file mode 100644
index 0000000..0507fb9
--- /dev/null
+++ b/test/fixtures/agents-md/template-common/AGENTS.md
@@ -0,0 +1,10 @@
+## Development
+
+### Common Development
+- Common development instructions
+- Available in all templates
+
+## Tools
+
+### Common Tools
+- Tools that apply to all templates
\ No newline at end of file
diff --git a/test/fixtures/agents-md/template-common/package.json b/test/fixtures/agents-md/template-common/package.json
new file mode 100644
index 0000000..f4138df
--- /dev/null
+++ b/test/fixtures/agents-md/template-common/package.json
@@ -0,0 +1,4 @@
+{
+  "name": "test-common",
+  "version": "1.0.0"
+}
diff --git a/test/fixtures/agents-md/template-vanilla/AGENTS.md b/test/fixtures/agents-md/template-vanilla/AGENTS.md
new file mode 100644
index 0000000..6a8a8c8
--- /dev/null
+++ b/test/fixtures/agents-md/template-vanilla/AGENTS.md
@@ -0,0 +1,5 @@
+## Template Info
+
+### Vanilla Template
+- This is vanilla template specific content
+- Only available in vanilla template
\ No newline at end of file
diff --git a/test/fixtures/agents-md/template-vanilla/package.json b/test/fixtures/agents-md/template-vanilla/package.json
new file mode 100644
index 0000000..65651ce
--- /dev/null
+++ b/test/fixtures/agents-md/template-vanilla/package.json
@@ -0,0 +1,4 @@
+{
+  "name": "test-vanilla",
+  "version": "1.0.0"
+}