diff --git a/.gemini/settings.json b/.gemini/settings.json
index eb7741997b..ea8bc4ae1b 100644
--- a/.gemini/settings.json
+++ b/.gemini/settings.json
@@ -6,6 +6,7 @@
     "topicUpdateNarration": true
   },
   "general": {
-    "devtools": true
+    "devtools": true,
+    "activeTeam": "test-team"
   }
-}
+}
\ No newline at end of file
diff --git a/packages/cli/src/config/config.ts b/packages/cli/src/config/config.ts
index 27953c60a9..657b7f3259 100755
--- a/packages/cli/src/config/config.ts
+++ b/packages/cli/src/config/config.ts
@@ -894,6 +894,7 @@ export async function loadCliConfig(
     targetDir: cwd,
     includeDirectoryTree,
     includeDirectories,
+    activeTeam: settings.general?.activeTeam,
     loadMemoryFromIncludeDirectories:
       settings.context?.loadMemoryFromIncludeDirectories || false,
     discoveryMaxDirs: settings.context?.discoveryMaxDirs,
diff --git a/packages/cli/src/config/settingsSchema.ts b/packages/cli/src/config/settingsSchema.ts
index 1578b920ef..f7025c3baa 100644
--- a/packages/cli/src/config/settingsSchema.ts
+++ b/packages/cli/src/config/settingsSchema.ts
@@ -199,6 +199,15 @@ const SETTINGS_SCHEMA = {
         description: 'The preferred editor to open files in.',
         showInDialog: false,
       },
+      activeTeam: {
+        type: 'string',
+        label: 'Active Team',
+        category: 'General',
+        requiresRestart: false,
+        default: undefined as string | undefined,
+        description: 'The currently active agent team slug.',
+        showInDialog: false,
+      },
       vimMode: {
         type: 'boolean',
         label: 'Vim Mode',
diff --git a/packages/cli/src/services/BuiltinCommandLoader.ts b/packages/cli/src/services/BuiltinCommandLoader.ts
index c1cbd5621e..f1b05c765e 100644
--- a/packages/cli/src/services/BuiltinCommandLoader.ts
+++ b/packages/cli/src/services/BuiltinCommandLoader.ts
@@ -57,6 +57,7 @@ import { toolsCommand } from '../ui/commands/toolsCommand.js';
 import { skillsCommand } from '../ui/commands/skillsCommand.js';
 import { settingsCommand } from '../ui/commands/settingsCommand.js';
 import { tasksCommand } from '../ui/commands/tasksCommand.js';
+import { teamCommand } from '../ui/commands/teamCommand.js';
 import { vimCommand } from '../ui/commands/vimCommand.js';
 import { setupGithubCommand } from '../ui/commands/setupGithubCommand.js';
 import { terminalSetupCommand } from '../ui/commands/terminalSetupCommand.js';
@@ -222,6 +223,7 @@ export class BuiltinCommandLoader implements ICommandLoader {
         : []),
       settingsCommand,
       tasksCommand,
+      teamCommand,
       vimCommand,
       setupGithubCommand,
       terminalSetupCommand,
diff --git a/packages/cli/src/test-utils/render.tsx b/packages/cli/src/test-utils/render.tsx
index 11a45f99d3..47974b194e 100644
--- a/packages/cli/src/test-utils/render.tsx
+++ b/packages/cli/src/test-utils/render.tsx
@@ -526,6 +526,11 @@ const baseMockUiState = {
   pendingHistoryItems: [],
   mainControlsRef: () => {},
   rootUiRef: { current: null },
+  adminSettingsChanged: false,
+  newAgents: null,
+  isTeamSelectionActive: false,
+  isTeamCreatorActive: false,
+  showIsExpandableHint: false,
 };
 
 export const mockAppState: AppState = {
@@ -533,7 +538,7 @@ export const mockAppState: AppState = {
   startupWarnings: [],
 };
 
-const mockUIActions: UIActions = {
+export const mockUIActions: UIActions = {
   handleThemeSelect: vi.fn(),
   closeThemeDialog: vi.fn(),
   handleThemeHighlight: vi.fn(),
@@ -590,6 +595,7 @@ const mockUIActions: UIActions = {
   handleRestart: vi.fn(),
   handleNewAgentsSelect: vi.fn(),
   handleTeamSelect: vi.fn(),
+  setIsTeamCreatorActive: vi.fn(),
   getPreferredEditor: vi.fn(),
   clearAccountSuspension: vi.fn(),
 };
diff --git a/packages/cli/src/ui/AppContainer.tsx b/packages/cli/src/ui/AppContainer.tsx
index 999d0852b7..d07fdc463c 100644
--- a/packages/cli/src/ui/AppContainer.tsx
+++ b/packages/cli/src/ui/AppContainer.tsx
@@ -416,6 +416,7 @@ export const AppContainer = (props: AppContainerProps) => {
 
   const [isConfigInitialized, setConfigInitialized] = useState(false);
   const [isTeamSelectionActive, setIsTeamSelectionActive] = useState(false);
+  const [isTeamCreatorActive, setIsTeamCreatorActive] = useState(false);
 
   const logger = useLogger(config.storage);
   const { inputHistory, addInput, initializeFromLogger } =
@@ -958,6 +959,8 @@ Logging in with Google... Restarting Gemini CLI to continue.
       },
       toggleShortcutsHelp: () => setShortcutsHelpVisible((visible) => !visible),
       setText: stableSetText,
+      setIsTeamSelectionActive,
+      setIsTeamCreatorActive,
     }),
     [
       setAuthState,
@@ -977,6 +980,8 @@ Logging in with Google... Restarting Gemini CLI to continue.
       toggleDebugProfiler,
       setShortcutsHelpVisible,
       stableSetText,
+      setIsTeamSelectionActive,
+      setIsTeamCreatorActive,
     ],
   );
 
@@ -1421,12 +1426,12 @@ Logging in with Google... Restarting Gemini CLI to continue.
   const handleTeamSelect = useCallback(
     (teamName: string | undefined) => {
       config.setActiveTeam(teamName);
+      settings.setValue(SettingScope.Workspace, 'general.activeTeam', teamName);
       setIsTeamSelectionActive(false);
       refreshStatic();
     },
-    [config, refreshStatic],
+    [config, refreshStatic, settings],
   );
-
   /**
    * Determines if the input prompt should be active and accept user input.
    * Input is disabled during:
@@ -2067,6 +2072,7 @@ Logging in with Google... Restarting Gemini CLI to continue.
 
   const dialogsVisible =
     isTeamSelectionActive ||
+    isTeamCreatorActive ||
     shouldShowIdePrompt ||
     shouldShowIdePrompt ||
     isFolderTrustDialogOpen ||
@@ -2399,6 +2405,7 @@ Logging in with Google... Restarting Gemini CLI to continue.
       adminSettingsChanged,
       newAgents,
       isTeamSelectionActive,
+      isTeamCreatorActive,
       showIsExpandableHint,
       hintMode:
         config.isModelSteeringEnabled() && isToolExecuting(pendingHistoryItems),
@@ -2527,6 +2534,7 @@ Logging in with Google... Restarting Gemini CLI to continue.
       newAgents,
       showIsExpandableHint,
       isTeamSelectionActive,
+      isTeamCreatorActive,
     ],
   );
 
@@ -2624,6 +2632,7 @@ Logging in with Google... Restarting Gemini CLI to continue.
         setNewAgents(null);
       },
       handleTeamSelect,
+      setIsTeamCreatorActive,
       getPreferredEditor,
       clearAccountSuspension: () => {
         setAccountSuspensionInfo(null);
@@ -2686,6 +2695,7 @@ Logging in with Google... Restarting Gemini CLI to continue.
       historyManager,
       getPreferredEditor,
       handleTeamSelect,
+      setIsTeamCreatorActive,
     ],
   );
 
diff --git a/packages/cli/src/ui/commands/teamCommand.ts b/packages/cli/src/ui/commands/teamCommand.ts
new file mode 100644
index 0000000000..8fe4e4dd24
--- /dev/null
+++ b/packages/cli/src/ui/commands/teamCommand.ts
@@ -0,0 +1,43 @@
+/**
+ * @license
+ * Copyright 2026 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import {
+  CommandKind,
+  type SlashCommand,
+  type SlashCommandActionReturn,
+} from './types.js';
+
+/**
+ * Slash command to manage agent teams.
+ */
+export const teamCommand: SlashCommand = {
+  name: 'team',
+  description: 'Manage agent teams',
+  kind: CommandKind.BUILT_IN,
+  autoExecute: false,
+  subCommands: [
+    {
+      name: 'select',
+      description: 'Open the team selection dialog',
+      kind: CommandKind.BUILT_IN,
+      autoExecute: true,
+      action: async (): Promise<SlashCommandActionReturn> => ({
+          type: 'dialog',
+          dialog: 'teamSelection',
+        }),
+    },
+    {
+      name: 'create',
+      description: 'Create a new agent team interactively',
+      kind: CommandKind.BUILT_IN,
+      autoExecute: true,
+      action: async (): Promise<SlashCommandActionReturn> => ({
+          type: 'dialog',
+          dialog: 'teamCreator',
+        }),
+    },
+  ],
+};
diff --git a/packages/cli/src/ui/commands/types.ts b/packages/cli/src/ui/commands/types.ts
index 466e70c994..987a85efc4 100644
--- a/packages/cli/src/ui/commands/types.ts
+++ b/packages/cli/src/ui/commands/types.ts
@@ -126,6 +126,8 @@ export interface OpenDialogActionReturn {
     | 'sessionBrowser'
     | 'model'
     | 'agentConfig'
+    | 'teamSelection'
+    | 'teamCreator'
     | 'permissions';
 }
 
diff --git a/packages/cli/src/ui/components/DialogManager.tsx b/packages/cli/src/ui/components/DialogManager.tsx
index 5d3a75007d..604b835bc5 100644
--- a/packages/cli/src/ui/components/DialogManager.tsx
+++ b/packages/cli/src/ui/components/DialogManager.tsx
@@ -26,6 +26,7 @@ import { SessionBrowser } from './SessionBrowser.js';
 import { PermissionsModifyTrustDialog } from './PermissionsModifyTrustDialog.js';
 import { ModelDialog } from './ModelDialog.js';
 import { TeamSelectionDialog } from './TeamSelectionDialog.js';
+import { TeamCreatorWizard } from './TeamCreatorWizard.js';
 import { theme } from '../semantic-colors.js';
 import { useUIState } from '../contexts/UIStateContext.js';
 import { useUIActions } from '../contexts/UIActionsContext.js';
@@ -69,6 +70,14 @@ export const DialogManager = ({
       />
     );
   }
+  if (uiState.isTeamCreatorActive) {
+    return (
+      <TeamCreatorWizard
+        onComplete={() => uiActions.setIsTeamCreatorActive(false)}
+        onCancel={() => uiActions.setIsTeamCreatorActive(false)}
+      />
+    );
+  }
   if (uiState.adminSettingsChanged) {
     return <AdminSettingsChangedDialog />;
   }
diff --git a/packages/cli/src/ui/components/StatusRow.tsx b/packages/cli/src/ui/components/StatusRow.tsx
index 22280cc86d..27f0bcc908 100644
--- a/packages/cli/src/ui/components/StatusRow.tsx
+++ b/packages/cli/src/ui/components/StatusRow.tsx
@@ -159,7 +159,10 @@ const PROVIDER_COLORS: Record<string, string> = {
  */
 const ActiveTeamIndicator: React.FC = () => {
   const config = useConfig();
-  const activeTeam = config?.getActiveTeam();
+  const activeTeam =
+    typeof config?.getActiveTeam === 'function'
+      ? config.getActiveTeam()
+      : undefined;
 
   if (!activeTeam) return null;
 
diff --git a/packages/cli/src/ui/components/TeamCreatorWizard.tsx b/packages/cli/src/ui/components/TeamCreatorWizard.tsx
new file mode 100644
index 0000000000..ba1324b680
--- /dev/null
+++ b/packages/cli/src/ui/components/TeamCreatorWizard.tsx
@@ -0,0 +1,691 @@
+/**
+ * @license
+ * Copyright 2026 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import type React from 'react';
+import { useState, useMemo, useCallback } from 'react';
+import { Box, Text , useStdin } from 'ink';
+import {
+  type ScaffoldTeamAgent,
+  scaffoldTeam,
+  type EditorType,
+} from '@google/gemini-cli-core';
+import { theme } from '../semantic-colors.js';
+import { TextInput } from './shared/TextInput.js';
+import { useTextBuffer } from './shared/text-buffer.js';
+import { BaseSelectionList } from './shared/BaseSelectionList.js';
+import { DialogFooter } from './shared/DialogFooter.js';
+import { useConfig } from '../contexts/ConfigContext.js';
+import { useUIActions } from '../contexts/UIActionsContext.js';
+import { useKeypress, type Key } from '../hooks/useKeypress.js';
+import { Command } from '../key/keyMatchers.js';
+import { useKeyMatchers } from '../hooks/useKeyMatchers.js';
+import { type SelectionListItem } from '../hooks/useSelectionList.js';
+import { useSettingsStore } from '../contexts/SettingsContext.js';
+import { formatCommand } from '../key/keybindingUtils.js';
+
+interface TeamCreatorWizardProps {
+  onComplete: () => void;
+  onCancel: () => void;
+}
+
+type WizardStep =
+  | 'identity'
+  | 'roster'
+  | 'objective'
+  | 'confirmation'
+  | 'success';
+
+const EXTERNAL_TEMPLATES: RosterListItem[] = [
+  {
+    name: 'claude-coder',
+    kind: 'external',
+    provider: 'claude-code',
+    description: 'Expert Claude coder focused on direct action.',
+    logo: '󰈙',
+    logoColor: '#D7AFFF', // Purple
+  },
+  {
+    name: 'codex-architect',
+    kind: 'external',
+    provider: 'codex',
+    description: 'Specialized code generation and architectural patterns.',
+    logo: '󰘦',
+    logoColor: '#87D7D7', // Cyan
+  },
+  {
+    name: 'antigravity-creative',
+    kind: 'external',
+    provider: 'antigravity',
+    description: 'Creative problem solving and unconventional solutions.',
+    logo: '󱜙',
+    logoColor: '#FFFFAF', // Yellow
+  },
+  {
+    name: 'gemma-helper',
+    kind: 'external',
+    provider: 'gemma',
+    description: 'Lightweight and efficient general purpose assistant.',
+    logo: '󱜚',
+    logoColor: '#87AFFF', // Blue
+  },
+];
+
+interface RosterListItem {
+  name: string;
+  kind: 'local' | 'external' | 'meta';
+  provider?: string;
+  description?: string;
+  sourcePath?: string;
+  logo?: string;
+  logoColor?: string;
+}
+
+export function TeamCreatorWizard({
+  onComplete,
+  onCancel,
+}: TeamCreatorWizardProps): React.JSX.Element {
+  const config = useConfig();
+  const { handleTeamSelect } = useUIActions();
+  const keyMatchers = useKeyMatchers();
+  const [step, setStep] = useState<WizardStep>('identity');
+  const [teamName, setTeamName] = useState('');
+  const [displayName, setDisplayName] = useState('');
+  const [description, setDescription] = useState('');
+  const [instructions, setInstructions] = useState('');
+  const [selectedAgents, setSelectedAgents] = useState<Set<string>>(new Set());
+  const [isSubmitting, setIsSubmitting] = useState(false);
+  const [error, setError] = useState<string | null>(null);
+  const [createdPath, setCreatedPath] = useState<string | null>(null);
+
+  const localAgents = useMemo(
+    () =>
+      config
+        ?.getAgentRegistry()
+        .getAllDefinitions()
+        .filter((a) => a.kind === 'local') || [],
+    [config],
+  );
+
+  const allAvailableAgents = useMemo((): RosterListItem[] => {
+    const local: RosterListItem[] = localAgents.map((a) => {
+      let logo = '󰈙'; // Default
+      let logoColor = theme.text.accent;
+
+      if (a.name === 'codebase-investigator') {
+        logo = '🔍';
+        logoColor = '#87D7D7'; // Cyan
+      } else if (a.name === 'cli-help') {
+        logo = '󰞋';
+        logoColor = '#FBBC04'; // Yellow
+      } else if (a.name === 'generalist') {
+        logo = '󰈙';
+        logoColor = '#4285F4'; // Blue
+      }
+
+      return {
+        name: a.name,
+        kind: 'local' as const,
+        description: a.description,
+        sourcePath: a.metadata?.filePath,
+        logo: !a.metadata?.filePath ? logo : undefined, // Only for built-ins
+        logoColor: !a.metadata?.filePath ? logoColor : undefined,
+      };
+    });
+    const external: RosterListItem[] = EXTERNAL_TEMPLATES.map((a) => ({
+      name: a.name,
+      kind: 'external' as const,
+      provider: a.provider,
+      description: a.description,
+      logo: a.logo,
+      logoColor: a.logoColor,
+    }));
+    return [...local, ...external];
+  }, [localAgents]);
+  const { settings } = useSettingsStore();
+  const { stdin, setRawMode } = useStdin();
+  const getPreferredEditor = useCallback(
+    // eslint-disable-next-line @typescript-eslint/no-unsafe-type-assertion
+    () => settings.merged.general.preferredEditor as EditorType,
+    [settings.merged.general.preferredEditor],
+  );
+
+  const handleNext = useCallback(() => {
+    if (step === 'identity') {
+      if (!teamName.trim()) {
+        setError('Slug is required');
+        return;
+      }
+      if (!displayName.trim()) {
+        setError('Display Name is required');
+        return;
+      }
+      setError(null);
+      setStep('roster');
+    } else if (step === 'roster') {
+      setStep('objective');
+    } else if (step === 'objective') {
+      if (!instructions.trim()) {
+        setError('Objective/Instructions are required');
+        return;
+      }
+      setError(null);
+      setStep('confirmation');
+    }
+  }, [step, teamName, displayName, instructions]);
+
+  const handleBack = useCallback(() => {
+    if (step === 'roster') setStep('identity');
+    else if (step === 'objective') setStep('roster');
+    else if (step === 'confirmation') setStep('objective');
+    else if (step === 'identity') onCancel();
+    else if (step === 'success') onComplete();
+  }, [step, onCancel, onComplete]);
+
+  const handleToggleAgent = (name: string) => {
+    const next = new Set(selectedAgents);
+    if (next.has(name)) next.delete(name);
+    else next.add(name);
+    setSelectedAgents(next);
+  };
+
+  const handleCreate = useCallback(async () => {
+    setIsSubmitting(true);
+    setError(null);
+    try {
+      const agentsToScaffold: ScaffoldTeamAgent[] = allAvailableAgents
+        .filter((a) => selectedAgents.has(a.name) && a.kind !== 'meta')
+        .map((a) => ({
+          name: a.name,
+          // eslint-disable-next-line @typescript-eslint/no-unsafe-type-assertion
+          kind: a.kind as 'local' | 'external',
+          provider: a.provider,
+          description: a.description,
+          sourcePath: a.sourcePath,
+        }));
+      const path = await scaffoldTeam({
+        name: teamName,
+        displayName,
+        description,
+        instructions,
+        agents: agentsToScaffold,
+        targetDir: config.storage.getProjectTeamsDir(),
+      });
+      setCreatedPath(path);
+      await config.getTeamRegistry().reload();
+      setStep('success');
+    } catch (e) {
+      setError(e instanceof Error ? e.message : String(e));
+      setIsSubmitting(false);
+    }
+  }, [
+    allAvailableAgents,
+    selectedAgents,
+    teamName,
+    displayName,
+    description,
+    instructions,
+    config,
+  ]);
+
+  // Identity Step Buffers
+  const nameBuffer = useTextBuffer({
+    initialText: teamName,
+    viewport: { width: 40, height: 1 },
+    onChange: setTeamName,
+    singleLine: true,
+  });
+  const displayNameBuffer = useTextBuffer({
+    initialText: displayName,
+    viewport: { width: 40, height: 1 },
+    onChange: setDisplayName,
+    singleLine: true,
+  });
+  const descBuffer = useTextBuffer({
+    initialText: description,
+    viewport: { width: 80, height: 1 },
+    onChange: setDescription,
+    singleLine: true,
+  });
+
+  // Objective Step Buffer
+  const instructionsBuffer = useTextBuffer({
+    initialText: instructions,
+    viewport: { width: 80, height: 5 },
+    onChange: setInstructions,
+    stdin,
+    setRawMode,
+    getPreferredEditor,
+  });
+
+  const [activeIdentityField, setActiveIdentityField] = useState<0 | 1 | 2>(0);
+
+  const handleIdentityKeyPress = useCallback(
+    (key: Key) => {
+      const isNext =
+        keyMatchers[Command.DIALOG_NAVIGATION_DOWN](key) ||
+        (key.name === 'tab' && !key.shift);
+      const isPrev =
+        keyMatchers[Command.DIALOG_NAVIGATION_UP](key) ||
+        (key.name === 'tab' && key.shift);
+
+      if (isNext) {
+        // eslint-disable-next-line @typescript-eslint/no-unsafe-type-assertion
+        setActiveIdentityField(((activeIdentityField + 1) % 3) as 0 | 1 | 2);
+        return true;
+      }
+      if (isPrev) {
+        // eslint-disable-next-line @typescript-eslint/no-unsafe-type-assertion
+        setActiveIdentityField(((activeIdentityField + 2) % 3) as 0 | 1 | 2);
+        return true;
+      }
+      if (keyMatchers[Command.ESCAPE](key)) {
+        onCancel();
+        return true;
+      }
+      return false;
+    },
+    [activeIdentityField, keyMatchers, onCancel],
+  );
+
+  // Handle Tab for "Back" and any key for success exit
+  const handleGlobalKeys = useCallback(
+    (key: Key) => {
+      if (step === 'success') {
+        if (key.sequence?.toLowerCase() === 'y') {
+          handleTeamSelect(teamName);
+        }
+        onComplete();
+        return true;
+      }
+      if (key.name === 'tab') {
+        handleBack();
+        return true;
+      }
+      return false;
+    },
+    [step, handleBack, onComplete, handleTeamSelect, teamName],
+  );
+
+  useKeypress(handleGlobalKeys, { isActive: true, priority: true });
+
+  useKeypress(handleIdentityKeyPress, {
+    isActive: step === 'identity',
+    priority: true,
+  });
+
+  const handleObjectiveKeyPress = useCallback(
+    (key: Key) => {
+      if (keyMatchers[Command.OPEN_EXTERNAL_EDITOR](key)) {
+        void instructionsBuffer.openInExternalEditor();
+        return true;
+      }
+      if (keyMatchers[Command.ESCAPE](key)) {
+        onCancel();
+        return true;
+      }
+      return false;
+    },
+    [instructionsBuffer, keyMatchers, onCancel],
+  );
+
+  useKeypress(handleObjectiveKeyPress, {
+    isActive: step === 'objective',
+    priority: true,
+  });
+
+  const handleConfirmationKeyPress = useCallback(
+    (key: Key) => {
+      if (keyMatchers[Command.RETURN](key)) {
+        void handleCreate();
+        return true;
+      }
+      if (keyMatchers[Command.ESCAPE](key)) {
+        onCancel();
+        return true;
+      }
+      return false;
+    },
+    [handleCreate, keyMatchers, onCancel],
+  );
+
+  useKeypress(handleConfirmationKeyPress, {
+    isActive: step === 'confirmation' && !isSubmitting,
+    priority: true,
+  });
+
+  if (step === 'identity') {
+    return (
+      <Box
+        flexDirection="column"
+        borderStyle="round"
+        borderColor={theme.border.default}
+        padding={1}
+        width="100%"
+      >
+        <Text bold color={theme.text.primary}>
+          Step 1: Team Identity
+        </Text>
+        <Box marginTop={1} flexDirection="column">
+          <Text color={theme.text.secondary}>
+            Slug Name (e.g., coding-team):
+          </Text>
+          <TextInput
+            buffer={nameBuffer}
+            focus={activeIdentityField === 0}
+            onSubmit={() => setActiveIdentityField(1)}
+          />
+
+          <Box marginTop={1} flexDirection="column">
+            <Text color={theme.text.secondary}>
+              Display Name (e.g., The Coding Team):
+            </Text>
+            <TextInput
+              buffer={displayNameBuffer}
+              focus={activeIdentityField === 1}
+              onSubmit={() => setActiveIdentityField(2)}
+            />
+          </Box>
+
+          <Box marginTop={1} flexDirection="column">
+            <Text color={theme.text.secondary}>Short Description:</Text>
+            <TextInput
+              buffer={descBuffer}
+              focus={activeIdentityField === 2}
+              onSubmit={handleNext}
+            />
+          </Box>
+        </Box>
+        <DialogFooter
+          primaryAction="Enter to continue"
+          navigationActions="Tab or ↑/↓ to switch fields"
+          cancelAction="Esc to cancel"
+        />
+      </Box>
+    );
+  }
+
+  if (step === 'roster') {
+    const rosterItems: Array<SelectionListItem<RosterListItem>> =
+      allAvailableAgents.map((a) => ({
+        key: a.name,
+        value: a,
+      }));
+    rosterItems.push({
+      key: 'done',
+      value: { name: 'done', kind: 'meta' as const },
+    });
+
+    return (
+      <Box
+        flexDirection="column"
+        borderStyle="round"
+        borderColor={theme.border.default}
+        padding={1}
+        width="100%"
+      >
+        <Text bold color={theme.text.primary}>
+          Step 2: Team Roster
+        </Text>
+        <Box marginTop={1}>
+          <Text color={theme.text.secondary}>
+            Select agents to include in your team.
+          </Text>
+        </Box>
+        <Box marginTop={1}>
+          <BaseSelectionList<RosterListItem>
+            items={rosterItems}
+            onSelect={(item) => {
+              if (item.name === 'done') handleNext();
+              else handleToggleAgent(item.name);
+            }}
+            maxItemsToShow={10}
+            showScrollArrows={true}
+            renderItem={(item, context) => {
+              const value = item.value;
+              if (value.name === 'done') {
+                return (
+                  <Text
+                    bold
+                    color={
+                      context.isSelected
+                        ? theme.text.accent
+                        : theme.text.primary
+                    }
+                  >
+                    [ Done - Continue to Objective ]
+                  </Text>
+                );
+              }
+              const isChecked = selectedAgents.has(value.name);
+              return (
+                <Box flexDirection="column">
+                  <Box flexDirection="row">
+                    <Text
+                      color={
+                        isChecked ? theme.status.success : theme.text.secondary
+                      }
+                    >
+                      [{isChecked ? 'x' : ' '}]
+                    </Text>
+                    <Text
+                      color={
+                        context.isSelected
+                          ? theme.text.accent
+                          : theme.text.primary
+                      }
+                    >
+                      {' '}
+                      {value.logo && (
+                        <Text color={value.logoColor || theme.text.accent}>
+                          {value.logo}{' '}
+                        </Text>
+                      )}
+                      {value.name}
+                    </Text>
+                    {value.kind === 'external' ? (
+                      <Text color={theme.text.accent} bold>
+                        {' '}
+                        [EXTERNAL]
+                      </Text>
+                    ) : !value.sourcePath ? (
+                      <Text color={theme.ui.comment} italic>
+                        {' '}
+                        [BUILT-IN]
+                      </Text>
+                    ) : null}
+                    <Text color={theme.text.secondary}>
+                      {' '}
+                      ({value.kind}
+                      {value.provider ? `: ${value.provider}` : ''})
+                    </Text>
+                  </Box>
+                  {value.description && (
+                    <Text color={theme.text.secondary} italic>
+                      {'  '}
+                      {value.description}
+                    </Text>
+                  )}
+                </Box>
+              );
+            }}
+          />
+        </Box>
+        <DialogFooter
+          primaryAction="Enter to toggle/confirm"
+          navigationActions="Tab to go back"
+        />
+      </Box>
+    );
+  }
+
+  if (step === 'objective') {
+    return (
+      <Box
+        flexDirection="column"
+        borderStyle="round"
+        borderColor={theme.border.default}
+        padding={1}
+        width="100%"
+      >
+        <Text bold color={theme.text.primary}>
+          Step 3: Team Objective
+        </Text>
+        <Box marginTop={1} flexDirection="column">
+          <Text color={theme.text.secondary}>
+            Define what this team does and how it should work.
+          </Text>
+          {selectedAgents.size > 0 && (
+            <Box marginTop={1} flexDirection="row" flexWrap="wrap">
+              <Text color={theme.ui.comment}>Referencing agents: </Text>
+              {Array.from(selectedAgents).map((name, i) => {
+                const agent = allAvailableAgents.find((a) => a.name === name);
+                return (
+                  <Box key={name} flexDirection="row">
+                    {agent?.logo && (
+                      <Text color={agent.logoColor || theme.text.accent}>
+                        {agent.logo}{' '}
+                      </Text>
+                    )}
+                    <Text color={theme.ui.comment}>
+                      @{name}
+                      {i < selectedAgents.size - 1 ? ', ' : ''}
+                    </Text>
+                  </Box>
+                );
+              })}
+            </Box>
+          )}
+          <Box
+            marginTop={1}
+            borderStyle="single"
+            borderColor={theme.ui.comment}
+            paddingX={1}
+          >
+            <TextInput buffer={instructionsBuffer} onSubmit={handleNext} />
+          </Box>
+        </Box>
+
+        {error && (
+          <Box marginTop={1}>
+            <Text color={theme.status.error}>Error: {error}</Text>
+          </Box>
+        )}
+
+        <DialogFooter
+          primaryAction="Enter to continue"
+          navigationActions={`Tab to go back · ${formatCommand(Command.OPEN_EXTERNAL_EDITOR)} for full editor`}
+          cancelAction="Esc to cancel"
+        />
+      </Box>
+    );
+  }
+
+  if (step === 'confirmation') {
+    return (
+      <Box
+        flexDirection="column"
+        borderStyle="round"
+        borderColor={theme.border.default}
+        padding={1}
+        width="100%"
+      >
+        <Text bold color={theme.text.primary}>
+          Step 4: Confirm Team Creation
+        </Text>
+        <Box marginTop={1} flexDirection="column">
+          <Text color={theme.text.secondary}>
+            Name:{' '}
+            <Text color={theme.text.primary}>
+              {displayName} ({teamName})
+            </Text>
+          </Text>
+          <Text color={theme.text.secondary}>
+            Description: <Text color={theme.text.primary}>{description}</Text>
+          </Text>
+          <Box marginTop={1}>
+            <Text color={theme.text.secondary}>Roster:</Text>
+          </Box>
+          {Array.from(selectedAgents).map((name) => {
+            const agent = allAvailableAgents.find((a) => a.name === name);
+            return (
+              <Box key={name} flexDirection="row">
+                <Text color={theme.text.primary}>- </Text>
+                {agent?.logo && (
+                  <Text color={agent.logoColor || theme.text.accent}>
+                    {agent.logo}{' '}
+                  </Text>
+                )}
+                <Text color={theme.text.primary}>{name}</Text>
+              </Box>
+            );
+          })}
+          {selectedAgents.size === 0 && (
+            <Text color={theme.status.warning} italic>
+              No agents selected (Gemini CLI expert will be used by default)
+            </Text>
+          )}
+        </Box>
+
+        {error && (
+          <Box marginTop={1}>
+            <Text color={theme.status.error}>Error: {error}</Text>
+          </Box>
+        )}
+
+        <Box marginTop={1}>
+          {isSubmitting ? (
+            <Text color={theme.text.accent}>Creating team...</Text>
+          ) : (
+            <DialogFooter
+              primaryAction="Enter to create team"
+              navigationActions="Tab to go back"
+              cancelAction="Esc to cancel"
+            />
+          )}
+        </Box>
+      </Box>
+    );
+  }
+
+  if (step === 'success') {
+    return (
+      <Box
+        flexDirection="column"
+        borderStyle="round"
+        borderColor={theme.status.success}
+        padding={1}
+        width="100%"
+      >
+        <Text bold color={theme.status.success}>
+          Team Created Successfully!
+        </Text>
+        <Box marginTop={1} flexDirection="column">
+          <Text color={theme.text.primary}>
+            Your new team &quot;{displayName}&quot; is now ready to use.
+          </Text>
+          {createdPath && (
+            <Box marginTop={1}>
+              <Text color={theme.text.secondary}>Created at: </Text>
+              <Text color={theme.text.primary}>{createdPath}</Text>
+            </Box>
+          )}
+        </Box>
+        <Box marginTop={1}>
+          <Text color={theme.text.accent}>
+            Would you like to switch to this team now? (y/N)
+          </Text>
+        </Box>
+        <Box marginTop={1}>
+          <Text color={theme.text.secondary}>
+            Press any other key to finish...
+          </Text>
+        </Box>
+      </Box>
+    );
+  }
+
+  return <Box />;
+}
diff --git a/packages/cli/src/ui/components/TeamSelectionDialog.test.tsx b/packages/cli/src/ui/components/TeamSelectionDialog.test.tsx
index 816352beb8..6693be6953 100644
--- a/packages/cli/src/ui/components/TeamSelectionDialog.test.tsx
+++ b/packages/cli/src/ui/components/TeamSelectionDialog.test.tsx
@@ -5,76 +5,67 @@
  */
 
 import { describe, it, expect, vi } from 'vitest';
+import { renderWithProviders, mockUIActions } from '../../test-utils/render.js';
 import { act } from 'react';
 import { TeamSelectionDialog } from './TeamSelectionDialog.js';
-import { renderWithProviders } from '../../test-utils/render.js';
-import { waitFor } from '../../test-utils/async.js';
-import { type TeamDefinition } from '@google/gemini-cli-core';
 
 describe('<TeamSelectionDialog />', () => {
-  const mockTeams: TeamDefinition[] = [
+  const mockTeams = [
     {
-      name: 'team-1',
+      name: 'team-one',
       displayName: 'Team One',
       description: 'First team description',
-      instructions: 'Instructions 1',
       agents: [],
+      instructions: '',
+      configPath: '/test/team1',
     },
     {
-      name: 'team-2',
+      name: 'team-two',
       displayName: 'Team Two',
       description: 'Second team description',
-      instructions: 'Instructions 2',
       agents: [],
+      instructions: '',
+      configPath: '/test/team2',
     },
   ];
 
-  const mockOnSelect = vi.fn();
-
-  beforeEach(() => {
-    mockOnSelect.mockReset();
-  });
-
-  const renderComponent = async () =>
-    renderWithProviders(
-      <TeamSelectionDialog teams={mockTeams} onSelect={mockOnSelect} />,
+  it('renders a list of discovered teams and standard options', async () => {
+    const onSelect = vi.fn();
+    const { lastFrame, unmount } = await renderWithProviders(
+      <TeamSelectionDialog teams={mockTeams} onSelect={onSelect} />,
     );
 
-  it('renders all options correctly', async () => {
-    const { lastFrame, unmount } = await renderComponent();
-    const output = lastFrame();
-
-    expect(output).toContain('Select an Agent Team');
-    expect(output).toContain('Team One');
-    expect(output).toContain('First team description');
-    expect(output).toContain('Team Two');
-    expect(output).toContain('Second team description');
-    expect(output).toContain('The Polyglot Team (Curated)');
-    expect(output).toContain('No Team');
-    expect(output).toContain('Browse Team Marketplace');
-    expect(output).toContain('Create Team');
+    expect(lastFrame()).toContain('Select an Agent Team');
+    expect(lastFrame()).toContain('Team One');
+    expect(lastFrame()).toContain('Team Two');
+    expect(lastFrame()).toContain('The Polyglot Team');
+    expect(lastFrame()).toContain('No Team');
+    expect(lastFrame()).toContain('Browse Team Marketplace');
+    expect(lastFrame()).toContain('Create Team');
     unmount();
   });
 
   it('calls onSelect with team name when a team is selected', async () => {
-    const { stdin, waitUntilReady, unmount } = await renderComponent();
+    const onSelect = vi.fn();
+    const { stdin, unmount } = await renderWithProviders(
+      <TeamSelectionDialog teams={mockTeams} onSelect={onSelect} />,
+    );
 
-    // Default selection is index 0 (Team One)
     await act(async () => {
-      stdin.write('\r'); // Enter
+      stdin.write('\r'); // Enter on first item
     });
-    await waitUntilReady();
 
-    await waitFor(() => {
-      expect(mockOnSelect).toHaveBeenCalledWith('team-1');
-    });
+    expect(onSelect).toHaveBeenCalledWith('team-one');
     unmount();
   });
 
-  it('calls onSelect with undefined when "No Team" is selected', async () => {
-    const { stdin, waitUntilReady, unmount } = await renderComponent();
+  it('calls onSelect with undefined when No Team is selected', async () => {
+    const onSelect = vi.fn();
+    const { stdin, waitUntilReady, unmount } = await renderWithProviders(
+      <TeamSelectionDialog teams={mockTeams} onSelect={onSelect} />,
+    );
 
-    // Navigate to "No Team" (index 3: Team 1, Team 2, Polyglot, No Team)
+    // Navigate to No Team (index 3)
     for (let i = 0; i < 3; i++) {
       await act(async () => {
         stdin.write('\u001B[B'); // Down
@@ -85,37 +76,17 @@ describe('<TeamSelectionDialog />', () => {
     await act(async () => {
       stdin.write('\r'); // Enter
     });
-    await waitUntilReady();
 
-    await waitFor(() => {
-      expect(mockOnSelect).toHaveBeenCalledWith(undefined);
-    });
+    expect(onSelect).toHaveBeenCalledWith(undefined);
     unmount();
   });
 
-  it('does not call onSelect for placeholder options', async () => {
-    const { stdin, waitUntilReady, unmount } = await renderComponent();
-
-    // Navigate to "Browse Team Marketplace" (index 4)
-    for (let i = 0; i < 4; i++) {
-      await act(async () => {
-        stdin.write('\u001B[B'); // Down
-      });
-      await waitUntilReady();
-    }
-
-    await act(async () => {
-      stdin.write('\r'); // Enter
-    });
-    await waitUntilReady();
-
-    expect(mockOnSelect).not.toHaveBeenCalled();
-    unmount();
-  });
-
-  it('shows marketplace sub-view when selected', async () => {
-    const { stdin, lastFrame, waitUntilReady, unmount } =
-      await renderComponent();
+  it('shows marketplace view when selected', async () => {
+    const onSelect = vi.fn();
+    const { lastFrame, stdin, waitUntilReady, unmount } =
+      await renderWithProviders(
+        <TeamSelectionDialog teams={mockTeams} onSelect={onSelect} />,
+      );
 
     // Navigate to Marketplace (index 4)
     for (let i = 0; i < 4; i++) {
@@ -131,20 +102,24 @@ describe('<TeamSelectionDialog />', () => {
     await waitUntilReady();
 
     expect(lastFrame()).toContain('Agent Team Marketplace');
-    expect(lastFrame()).toContain('under development');
+    expect(lastFrame()).toContain(
+      'community marketplace is currently under development',
+    );
 
-    // Go back
+    // Go back with escape
     await act(async () => {
-      stdin.write('a');
+      stdin.write('\u001B'); // Escape
     });
     await waitUntilReady();
     expect(lastFrame()).toContain('Select an Agent Team');
     unmount();
   });
 
-  it('shows create team sub-view when selected', async () => {
-    const { stdin, lastFrame, waitUntilReady, unmount } =
-      await renderComponent();
+  it('launches team creator wizard when Create Team is selected', async () => {
+    const onSelect = vi.fn();
+    const { stdin, waitUntilReady, unmount } = await renderWithProviders(
+      <TeamSelectionDialog teams={mockTeams} onSelect={onSelect} />,
+    );
 
     // Navigate to Create Team (index 5)
     for (let i = 0; i < 5; i++) {
@@ -159,15 +134,7 @@ describe('<TeamSelectionDialog />', () => {
     });
     await waitUntilReady();
 
-    expect(lastFrame()).toContain('Create New Agent Team');
-    expect(lastFrame()).toContain('Create a directory in .gemini/teams/');
-
-    // Go back
-    await act(async () => {
-      stdin.write('a');
-    });
-    await waitUntilReady();
-    expect(lastFrame()).toContain('Select an Agent Team');
+    expect(mockUIActions.setIsTeamCreatorActive).toHaveBeenCalledWith(true);
     unmount();
   });
 });
diff --git a/packages/cli/src/ui/components/TeamSelectionDialog.tsx b/packages/cli/src/ui/components/TeamSelectionDialog.tsx
index 40fdb04352..39dd83e462 100644
--- a/packages/cli/src/ui/components/TeamSelectionDialog.tsx
+++ b/packages/cli/src/ui/components/TeamSelectionDialog.tsx
@@ -14,6 +14,7 @@ import {
 import { theme } from '../semantic-colors.js';
 import { DescriptiveRadioButtonSelect } from './shared/DescriptiveRadioButtonSelect.js';
 import { useKeypress } from '../hooks/useKeypress.js';
+import { useUIActions } from '../contexts/UIActionsContext.js';
 
 interface TeamSelectionDialogProps {
   teams: TeamDefinition[];
@@ -87,9 +88,8 @@ export function TeamSelectionDialog({
   teams: discoveredTeams,
   onSelect,
 }: TeamSelectionDialogProps): React.JSX.Element {
-  const [view, setView] = useState<'select' | 'marketplace' | 'create'>(
-    'select',
-  );
+  const uiActions = useUIActions();
+  const [view, setView] = useState<'select' | 'marketplace'>('select');
 
   useKeypress(
     () => {
@@ -184,12 +184,13 @@ export function TeamSelectionDialog({
       } else if (value === 'marketplace') {
         setView('marketplace');
       } else if (value === 'create') {
-        setView('create');
+        uiActions.setIsTeamCreatorActive(true);
+        onSelect(undefined);
       } else {
         onSelect(value);
       }
     },
-    [onSelect],
+    [onSelect, uiActions],
   );
 
   if (view === 'marketplace') {
@@ -229,54 +230,6 @@ export function TeamSelectionDialog({
     );
   }
 
-  if (view === 'create') {
-    return (
-      <Box
-        borderStyle="round"
-        borderColor={theme.border.default}
-        flexDirection="column"
-        padding={1}
-        width="100%"
-      >
-        <Text bold color={theme.text.primary}>
-          Create New Agent Team
-        </Text>
-        <Box marginTop={1} flexDirection="column">
-          <Text color={theme.text.secondary}>
-            To create a new team, follow these simple steps:
-          </Text>
-          <Text color={theme.text.primary}>
-            1. Create a directory in .gemini/teams/ (e.g.,
-            .gemini/teams/my-team/)
-          </Text>
-          <Text color={theme.text.primary}>
-            2. Create a TEAM.md file with name, display_name, and description.
-          </Text>
-          <Text color={theme.text.primary}>
-            3. (Optional) Add specialized agents to an agents/ sub-directory.
-          </Text>
-
-          <Box
-            marginTop={1}
-            padding={1}
-            borderStyle="single"
-            borderColor={theme.ui.focus}
-          >
-            <Text color={theme.ui.focus}>
-              Tip: You can now specify external agents directly in TEAM.md!
-            </Text>
-          </Box>
-
-          <Box marginTop={1}>
-            <Text color={theme.text.accent}>
-              Press any key to go back to selection...
-            </Text>
-          </Box>
-        </Box>
-      </Box>
-    );
-  }
-
   return (
     <Box
       borderStyle="round"
diff --git a/packages/cli/src/ui/contexts/KeypressContext.tsx b/packages/cli/src/ui/contexts/KeypressContext.tsx
index 15b378ba22..edc876dbf9 100644
--- a/packages/cli/src/ui/contexts/KeypressContext.tsx
+++ b/packages/cli/src/ui/contexts/KeypressContext.tsx
@@ -575,11 +575,6 @@ function* emitKeys(
         } else if ((match = /^(\d+)?(?:;(\d+))?([A-Za-z])$/.exec(cmd))) {
           code += match[3];
           modifier = parseInt(match[2] ?? match[1] ?? '1', 10) - 1;
-
-          // Skip focus-in/out events from useFocus hook
-          if (code === '[I' || code === '[O') {
-            continue;
-          }
         } else {
           code += cmd;
         }
@@ -859,8 +854,6 @@ export function KeypressProvider({
   useEffect(() => {
     terminalCapabilityManager.enableSupportedModes();
 
-    // Always ensure raw mode is on while we are active.
-    // Ink handles reference counting for setRawMode(true/false) calls.
     setRawMode(true);
 
     process.stdin.setEncoding('utf8'); // Make data events emit strings
diff --git a/packages/cli/src/ui/contexts/UIActionsContext.tsx b/packages/cli/src/ui/contexts/UIActionsContext.tsx
index 88b5899179..92501691fd 100644
--- a/packages/cli/src/ui/contexts/UIActionsContext.tsx
+++ b/packages/cli/src/ui/contexts/UIActionsContext.tsx
@@ -92,6 +92,7 @@ export interface UIActions {
   handleRestart: () => void;
   handleNewAgentsSelect: (choice: NewAgentsChoice) => Promise<void>;
   handleTeamSelect: (teamName: string | undefined) => void;
+  setIsTeamCreatorActive: (active: boolean) => void;
   getPreferredEditor: () => EditorType;
 
   clearAccountSuspension: () => void;
diff --git a/packages/cli/src/ui/contexts/UIStateContext.tsx b/packages/cli/src/ui/contexts/UIStateContext.tsx
index 587a1a0b16..7bf7199889 100644
--- a/packages/cli/src/ui/contexts/UIStateContext.tsx
+++ b/packages/cli/src/ui/contexts/UIStateContext.tsx
@@ -222,6 +222,7 @@ export interface UIState {
   adminSettingsChanged: boolean;
   newAgents: AgentDefinition[] | null;
   isTeamSelectionActive: boolean;
+  isTeamCreatorActive: boolean;
   showIsExpandableHint: boolean;
   hintMode: boolean;
   hintBuffer: string;
diff --git a/packages/cli/src/ui/hooks/slashCommandProcessor.test.tsx b/packages/cli/src/ui/hooks/slashCommandProcessor.test.tsx
index ec4aa00677..a201bdfb22 100644
--- a/packages/cli/src/ui/hooks/slashCommandProcessor.test.tsx
+++ b/packages/cli/src/ui/hooks/slashCommandProcessor.test.tsx
@@ -216,6 +216,8 @@ describe('useSlashCommandProcessor', () => {
             toggleBackgroundTasks: vi.fn(),
             toggleShortcutsHelp: vi.fn(),
             setText: vi.fn(),
+            setIsTeamSelectionActive: vi.fn(),
+            setIsTeamCreatorActive: vi.fn(),
           },
           new Map(), // extensionsUpdateState
           true, // isConfigInitialized
diff --git a/packages/cli/src/ui/hooks/slashCommandProcessor.ts b/packages/cli/src/ui/hooks/slashCommandProcessor.ts
index f55503ad25..89a9387a8d 100644
--- a/packages/cli/src/ui/hooks/slashCommandProcessor.ts
+++ b/packages/cli/src/ui/hooks/slashCommandProcessor.ts
@@ -87,6 +87,8 @@ interface SlashCommandProcessorActions {
   toggleBackgroundTasks: () => void;
   toggleShortcutsHelp: () => void;
   setText: (text: string) => void;
+  setIsTeamSelectionActive: (active: boolean) => void;
+  setIsTeamCreatorActive: (active: boolean) => void;
 }
 
 /**
@@ -500,6 +502,12 @@ export const useSlashCommandProcessor = (
                     case 'model':
                       actions.openModelDialog();
                       return { type: 'handled' };
+                    case 'teamSelection':
+                      actions.setIsTeamSelectionActive(true);
+                      return { type: 'handled' };
+                    case 'teamCreator':
+                      actions.setIsTeamCreatorActive(true);
+                      return { type: 'handled' };
                     case 'agentConfig': {
                       // eslint-disable-next-line @typescript-eslint/no-unsafe-type-assertion
                       const props = result.props as Record<string, unknown>;
diff --git a/packages/cli/src/ui/hooks/useFocus.test.tsx b/packages/cli/src/ui/hooks/useFocus.test.tsx
index f840a3c9fb..aeae475263 100644
--- a/packages/cli/src/ui/hooks/useFocus.test.tsx
+++ b/packages/cli/src/ui/hooks/useFocus.test.tsx
@@ -34,9 +34,11 @@ describe('useFocus', () => {
       pause: vi.fn(),
     });
     stdout = { write: vi.fn() };
-    mockedUseStdin.mockReturnValue({ stdin } as unknown as ReturnType<
-      typeof useStdin
-    >);
+    mockedUseStdin.mockReturnValue({
+      stdin,
+      setRawMode: vi.fn(),
+      isRawModeSupported: true,
+    } as unknown as ReturnType<typeof useStdin>);
     mockedUseStdout.mockReturnValue({ stdout } as unknown as ReturnType<
       typeof useStdout
     >);
diff --git a/packages/core/src/agents/teamRegistry.ts b/packages/core/src/agents/teamRegistry.ts
index 30faf3ad42..5649cbb09a 100644
--- a/packages/core/src/agents/teamRegistry.ts
+++ b/packages/core/src/agents/teamRegistry.ts
@@ -121,10 +121,15 @@ export class TeamRegistry {
 
   /**
    * Sets the current active team.
-   * @param name The slug (name) of the team to activate.
-   * @throws Error if the team is not found.
+   * @param name The slug (name) of the team to activate, or undefined to clear.
+   * @throws Error if the team is not found and name is provided.
    */
-  setActiveTeam(name: string): void {
+  setActiveTeam(name: string | undefined): void {
+    if (name === undefined) {
+      this.activeTeamName = undefined;
+      return;
+    }
+
     if (this.teams.has(name)) {
       this.activeTeamName = name;
     } else {
diff --git a/packages/core/src/agents/teamScaffolder.test.ts b/packages/core/src/agents/teamScaffolder.test.ts
new file mode 100644
index 0000000000..e90895b385
--- /dev/null
+++ b/packages/core/src/agents/teamScaffolder.test.ts
@@ -0,0 +1,97 @@
+/**
+ * @license
+ * Copyright 2026 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { describe, it, expect, beforeEach, afterEach } from 'vitest';
+import * as fs from 'node:fs/promises';
+import * as path from 'node:path';
+import * as os from 'node:os';
+import { scaffoldTeam, type ScaffoldTeamOptions } from './teamScaffolder.js';
+
+describe('teamScaffolder', () => {
+  let tempDir: string;
+
+  beforeEach(async () => {
+    tempDir = await fs.mkdtemp(
+      path.join(os.tmpdir(), 'gemini-team-scaffolder-test-'),
+    );
+  });
+
+  afterEach(async () => {
+    await fs.rm(tempDir, { recursive: true, force: true });
+  });
+
+  it('should scaffold a team with inline external agents', async () => {
+    const options: ScaffoldTeamOptions = {
+      name: 'Test Team',
+      displayName: 'The Test Team',
+      description: 'A team for testing.',
+      instructions: 'Do some testing.',
+      agents: [
+        {
+          kind: 'external',
+          name: 'claude-coder',
+          provider: 'claude-code',
+          description: 'Expert Claude coder.',
+        },
+      ],
+      targetDir: tempDir,
+    };
+
+    const teamPath = await scaffoldTeam(options);
+    expect(teamPath).toBe(path.join(tempDir, 'test-team'));
+
+    const teamMdPath = path.join(teamPath, 'TEAM.md');
+    const content = await fs.readFile(teamMdPath, 'utf-8');
+
+    expect(content).toContain('name: test-team');
+    expect(content).toContain('display_name: The Test Team');
+    expect(content).toContain('description: A team for testing.');
+    expect(content).toContain('provider: claude-code');
+    expect(content).toContain('Do some testing.');
+  });
+
+  it('should scaffold a team with standalone local agents', async () => {
+    // Create a dummy local agent file
+    const localAgentPath = path.join(tempDir, 'dummy-agent.md');
+    await fs.writeFile(
+      localAgentPath,
+      '---\nname: dummy\n---\nPrompt',
+      'utf-8',
+    );
+
+    const options: ScaffoldTeamOptions = {
+      name: 'Local Team',
+      displayName: 'The Local Team',
+      description: 'A team with local agents.',
+      instructions: 'Use local agents.',
+      agents: [
+        {
+          kind: 'local',
+          name: 'dummy',
+          sourcePath: localAgentPath,
+        },
+      ],
+      targetDir: tempDir,
+    };
+
+    // Use a subfolder for teams to avoid collision with dummy-agent.md
+    const teamsDir = path.join(tempDir, 'teams');
+    options.targetDir = teamsDir;
+
+    const teamPath = await scaffoldTeam(options);
+    const agentsDir = path.join(teamPath, 'agents');
+    const copiedAgentPath = path.join(agentsDir, 'dummy-agent.md');
+
+    expect(
+      await fs
+        .access(copiedAgentPath)
+        .then(() => true)
+        .catch(() => false),
+    ).toBe(true);
+    const copiedContent = await fs.readFile(copiedAgentPath, 'utf-8');
+    expect(copiedContent).toContain('name: dummy');
+  });
+});
diff --git a/packages/core/src/agents/teamScaffolder.ts b/packages/core/src/agents/teamScaffolder.ts
new file mode 100644
index 0000000000..6d15c8d515
--- /dev/null
+++ b/packages/core/src/agents/teamScaffolder.ts
@@ -0,0 +1,107 @@
+/**
+ * @license
+ * Copyright 2026 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import * as fs from 'node:fs/promises';
+import * as path from 'node:path';
+import { dump } from 'js-yaml';
+import { getErrorMessage } from '../utils/errors.js';
+
+export interface ScaffoldTeamAgent {
+  name: string;
+  kind: 'local' | 'external';
+  provider?: string;
+  description?: string;
+  sourcePath?: string;
+}
+
+export interface ScaffoldTeamOptions {
+  name: string;
+  displayName: string;
+  description: string;
+  instructions: string;
+  agents: ScaffoldTeamAgent[];
+  targetDir: string;
+}
+
+/**
+ * Scaffolds a new Agent Team directory and its associated files.
+ *
+ * @param options Configuration for the team to be created.
+ * @returns The absolute path to the created team directory.
+ */
+export async function scaffoldTeam(
+  options: ScaffoldTeamOptions,
+): Promise<string> {
+  const teamSlug = options.name.toLowerCase().replace(/[^a-z0-9-_]/g, '-');
+  const teamDirPath = path.resolve(options.targetDir, teamSlug);
+  const agentsDirPath = path.join(teamDirPath, 'agents');
+
+  try {
+    // 1. Create team directory
+    await fs.mkdir(teamDirPath, { recursive: true });
+
+    // 2. Clear agents directory if it exists to ensure a fresh start
+    try {
+      await fs.rm(agentsDirPath, { recursive: true, force: true });
+    } catch (_e) {
+      // Ignore if it doesn't exist
+    }
+
+    // 3. Generate TEAM.md content (no inline agents anymore)
+    const frontmatter = {
+      name: teamSlug,
+      display_name: options.displayName,
+      description: options.description,
+    };
+
+    const teamMdContent = `---
+${dump(frontmatter).trim()}
+---
+
+${options.instructions.trim()}
+`;
+
+    await fs.writeFile(
+      path.join(teamDirPath, 'TEAM.md'),
+      teamMdContent,
+      'utf-8',
+    );
+
+    // 4. Create agents/ sub-directory if there are any agents selected
+    if (options.agents.length > 0) {
+      await fs.mkdir(agentsDirPath, { recursive: true });
+
+      for (const agent of options.agents) {
+        const destPath = path.join(agentsDirPath, `${agent.name}.md`);
+
+        if (agent.kind === 'external') {
+          // Generate a new .md file for external agents
+          const agentFrontmatter = {
+            kind: 'external',
+            name: agent.name,
+            provider: agent.provider,
+            description: agent.description || `Expert ${agent.name} agent.`,
+          };
+          const agentContent = `---
+${dump(agentFrontmatter).trim()}
+---
+`;
+          await fs.writeFile(destPath, agentContent, 'utf-8');
+        } else if (agent.kind === 'local' && agent.sourcePath) {
+          // Copy existing local agent file
+          // Use a name-based filename to avoid collisions and keep it clean
+          await fs.copyFile(agent.sourcePath, destPath);
+        }
+      }
+    }
+
+    return teamDirPath;
+  } catch (error) {
+    throw new Error(
+      `Failed to scaffold team "${options.name}": ${getErrorMessage(error)}`,
+    );
+  }
+}
diff --git a/packages/core/src/config/config.ts b/packages/core/src/config/config.ts
index b8b97528f8..b2c77c1e50 100644
--- a/packages/core/src/config/config.ts
+++ b/packages/core/src/config/config.ts
@@ -736,6 +736,7 @@ export interface ConfigParameters {
     agents?: AgentSettings;
   }>;
   enableConseca?: boolean;
+  activeTeam?: string;
   billing?: {
     overageStrategy?: OverageStrategy;
   };
@@ -894,6 +895,7 @@ export class Config implements McpContext, AgentLoopContext {
   private initPromise: Promise<void> | undefined;
   private mcpInitializationPromise: Promise<void> | null = null;
   readonly storage: Storage;
+  private readonly _params: ConfigParameters;
   private readonly fileExclusions: FileExclusions;
   private readonly eventEmitter?: EventEmitter;
   private readonly useWriteTodos: boolean;
@@ -970,6 +972,7 @@ export class Config implements McpContext, AgentLoopContext {
   private approvedPlanPath: string | undefined;
 
   constructor(params: ConfigParameters) {
+    this._params = params;
     this._sessionId = params.sessionId;
     this.clientName = params.clientName;
     this.clientVersion = params.clientVersion ?? 'unknown';
@@ -1433,6 +1436,14 @@ export class Config implements McpContext, AgentLoopContext {
     await this.agentRegistry.initialize();
     await this.teamRegistry.initialize();
 
+    if (this._params.activeTeam) {
+      try {
+        this.teamRegistry.setActiveTeam(this._params.activeTeam);
+      } catch (_e) {
+        // Ignore if team not found (might have been deleted or is project-specific)
+      }
+    }
+
     coreEvents.on(CoreEvent.AgentsRefreshed, this.onAgentsRefreshed);
 
     this._toolRegistry = await this.createToolRegistry();
@@ -2037,13 +2048,8 @@ export class Config implements McpContext, AgentLoopContext {
   }
 
   setActiveTeam(name: string | undefined): void {
-    if (name) {
-      this.teamRegistry.setActiveTeam(name);
-    } else {
-      // Logic for clearing active team could be added here if needed,
-      // but for now TeamRegistry.setActiveTeam expects a string.
-      // We'll leave it as is to match TeamRegistry signature or update TeamRegistry if null is allowed.
-    }
+    this.teamRegistry.setActiveTeam(name);
+    coreEvents.emitActiveTeamChanged(name);
   }
 
   getAcknowledgedAgentsService(): AcknowledgedAgentsService {
diff --git a/packages/core/src/core/client.ts b/packages/core/src/core/client.ts
index 10b13a9f31..f6b91b9168 100644
--- a/packages/core/src/core/client.ts
+++ b/packages/core/src/core/client.ts
@@ -120,6 +120,7 @@ export class GeminiClient {
 
     coreEvents.on(CoreEvent.ModelChanged, this.handleModelChanged);
     coreEvents.on(CoreEvent.MemoryChanged, this.handleMemoryChanged);
+    coreEvents.on(CoreEvent.ActiveTeamChanged, this.handleActiveTeamChanged);
   }
 
   private get config(): Config {
@@ -134,6 +135,10 @@ export class GeminiClient {
     this.updateSystemInstruction();
   };
 
+  private handleActiveTeamChanged = () => {
+    this.updateSystemInstruction();
+  };
+
   clearCurrentSequenceModel(): void {
     this.currentSequenceModel = null;
   }
@@ -318,6 +323,7 @@ export class GeminiClient {
   dispose() {
     coreEvents.off(CoreEvent.ModelChanged, this.handleModelChanged);
     coreEvents.off(CoreEvent.MemoryChanged, this.handleMemoryChanged);
+    coreEvents.off(CoreEvent.ActiveTeamChanged, this.handleActiveTeamChanged);
   }
 
   async resumeChat(
diff --git a/packages/core/src/index.ts b/packages/core/src/index.ts
index 5361397386..bad7e0ad4d 100644
--- a/packages/core/src/index.ts
+++ b/packages/core/src/index.ts
@@ -184,6 +184,7 @@ export * from './agents/types.js';
 export * from './agents/agentLoader.js';
 export * from './agents/local-executor.js';
 export * from './agents/agent-scheduler.js';
+export * from './agents/teamScaffolder.js';
 
 // Export browser session management
 export { resetBrowserSession } from './agents/browser/browserAgentFactory.js';
diff --git a/packages/core/src/utils/events.ts b/packages/core/src/utils/events.ts
index bf3d997da1..a74497c099 100644
--- a/packages/core/src/utils/events.ts
+++ b/packages/core/src/utils/events.ts
@@ -193,6 +193,7 @@ export enum CoreEvent {
   EditorSelected = 'editor-selected',
   SlashCommandConflicts = 'slash-command-conflicts',
   QuotaChanged = 'quota-changed',
+  ActiveTeamChanged = 'active-team-changed',
   TelemetryKeychainAvailability = 'telemetry-keychain-availability',
   TelemetryTokenStorageType = 'telemetry-token-storage-type',
 }
@@ -226,6 +227,7 @@ export interface CoreEvents extends ExtensionEvents {
   [CoreEvent.RequestEditorSelection]: never[];
   [CoreEvent.EditorSelected]: [EditorSelectedPayload];
   [CoreEvent.SlashCommandConflicts]: [SlashCommandConflictsPayload];
+  [CoreEvent.ActiveTeamChanged]: [string | undefined];
   [CoreEvent.TelemetryKeychainAvailability]: [KeychainAvailabilityEvent];
   [CoreEvent.TelemetryTokenStorageType]: [TokenStorageInitializationEvent];
 }
@@ -403,6 +405,13 @@ export class CoreEventEmitter extends EventEmitter<CoreEvents> {
     this.emit(CoreEvent.QuotaChanged, payload);
   }
 
+  /**
+   * Notifies subscribers that the active team has changed.
+   */
+  emitActiveTeamChanged(teamName: string | undefined): void {
+    this.emit(CoreEvent.ActiveTeamChanged, teamName);
+  }
+
   /**
    * Flushes buffered messages. Call this immediately after primary UI listener
    * subscribes.