diff --git a/docs/reference/configuration.md b/docs/reference/configuration.md
index 598a1371d0..d5d806e9f4 100644
--- a/docs/reference/configuration.md
+++ b/docs/reference/configuration.md
@@ -1860,8 +1860,8 @@ their corresponding top-level category object in your `settings.json` file.
 #### `admin`
 
 - **`admin.secureModeEnabled`** (boolean):
-  - **Description:** If true, disallows YOLO mode (wildcard policies) and "Always allow" options
-    from being used.
+  - **Description:** If true, disallows YOLO mode (wildcard policies) and
+    "Always allow" options from being used.
   - **Default:** `false`
 
 - **`admin.extensions.enabled`** (boolean):
diff --git a/packages/a2a-server/src/agent/task-event-driven.test.ts b/packages/a2a-server/src/agent/task-event-driven.test.ts
index 8dde98e977..b4fc9ea5bf 100644
--- a/packages/a2a-server/src/agent/task-event-driven.test.ts
+++ b/packages/a2a-server/src/agent/task-event-driven.test.ts
@@ -353,16 +353,21 @@ describe('Task Event-Driven Scheduler', () => {
     );
   });
 
-  it('should execute without confirmation in YOLO mode and not transition to input-required', async () => {
-    // Enable YOLO mode
-    const yoloConfig = createMockConfig({
+  it('should execute without confirmation when wildcard policy is enabled and not transition to input-required', async () => {
+    // Enable wildcard policy
+    const wildcardConfig = createMockConfig({
       isEventDrivenSchedulerEnabled: () => true,
       getAllowedTools: () => ['*'],
     }) as Config;
-    const yoloMessageBus = yoloConfig.messageBus;
+    const wildcardMessageBus = wildcardConfig.messageBus;
 
     // @ts-expect-error - Calling private constructor
-    const task = new Task('task-id', 'context-id', yoloConfig, mockEventBus);
+    const task = new Task(
+      'task-id',
+      'context-id',
+      wildcardConfig,
+      mockEventBus,
+    );
     task.setTaskStateAndPublishUpdate = vi.fn();
 
     const toolCall = {
@@ -372,13 +377,13 @@ describe('Task Event-Driven Scheduler', () => {
       confirmationDetails: { type: 'info', title: 'test', prompt: 'test' },
     };
 
-    const handler = (yoloMessageBus.subscribe as Mock).mock.calls.find(
+    const handler = (wildcardMessageBus.subscribe as Mock).mock.calls.find(
       (call: unknown[]) => call[0] === MessageBusType.TOOL_CALLS_UPDATE,
     )?.[1];
     handler({ type: MessageBusType.TOOL_CALLS_UPDATE, toolCalls: [toolCall] });
 
     // Should NOT auto-publish ProceedOnce anymore, because PolicyEngine handles it directly
-    expect(yoloMessageBus.publish).not.toHaveBeenCalledWith(
+    expect(wildcardMessageBus.publish).not.toHaveBeenCalledWith(
       expect.objectContaining({
         type: MessageBusType.TOOL_CONFIRMATION_RESPONSE,
       }),
diff --git a/packages/a2a-server/src/http/app.test.ts b/packages/a2a-server/src/http/app.test.ts
index 4de4a905b0..c874032074 100644
--- a/packages/a2a-server/src/http/app.test.ts
+++ b/packages/a2a-server/src/http/app.test.ts
@@ -407,8 +407,8 @@ describe('E2E Tests', () => {
     expect(events.length).toBe(7);
   });
 
-  it('should handle multiple tool calls sequentially in YOLO mode', async () => {
-    // Set YOLO mode to auto-approve tools and test sequential execution.
+  it('should handle multiple tool calls sequentially with wildcard policy', async () => {
+    // Set wildcard policy to auto-approve tools and test sequential execution.
     getAllowedToolsSpy.mockReturnValue(['*']);
 
     // First call yields the tool request
@@ -680,15 +680,15 @@ describe('E2E Tests', () => {
     expect(events.length).toBe(10);
   });
 
-  it('should bypass tool approval in YOLO mode', async () => {
+  it('should bypass tool approval with wildcard policy', async () => {
     // First call yields the tool request
     sendMessageStreamSpy.mockImplementationOnce(async function* () {
       yield* [
         {
           type: GeminiEventType.ToolCallRequest,
           value: {
-            callId: 'test-call-id-yolo',
-            name: 'test-tool-yolo',
+            callId: 'test-call-id-wildcard',
+            name: 'test-tool-wildcard',
             args: {},
           },
         },
@@ -699,12 +699,12 @@ describe('E2E Tests', () => {
       yield* [{ type: 'content', value: 'Tool executed successfully.' }];
     });
 
-    // Set approval mode to yolo
+    // Set approval mode to wildcard
     getAllowedToolsSpy.mockReturnValue(['*']);
 
     const mockTool = new MockTool({
-      name: 'test-tool-yolo',
-      displayName: 'Test Tool YOLO',
+      name: 'test-tool-wildcard',
+      displayName: 'Test Tool WILDCARD',
       execute: vi.fn().mockResolvedValue({
         llmContent: 'Tool executed successfully.',
         returnDisplay: 'Tool executed successfully.',
@@ -722,8 +722,8 @@ describe('E2E Tests', () => {
       .post('/')
       .send(
         createStreamMessageRequest(
-          'run a tool in yolo mode',
-          'a2a-yolo-mode-test-message',
+          'run a tool in wildcard mode',
+          'a2a-wildcard-mode-test-message',
         ),
       )
       .set('Content-Type', 'application/json')
@@ -746,7 +746,7 @@ describe('E2E Tests', () => {
       {
         data: {
           status: 'validating',
-          request: { callId: 'test-call-id-yolo' },
+          request: { callId: 'test-call-id-wildcard' },
         },
       },
     ]);
@@ -760,7 +760,7 @@ describe('E2E Tests', () => {
       {
         data: {
           status: 'scheduled',
-          request: { callId: 'test-call-id-yolo' },
+          request: { callId: 'test-call-id-wildcard' },
         },
       },
     ]);
@@ -774,7 +774,7 @@ describe('E2E Tests', () => {
       {
         data: {
           status: 'executing',
-          request: { callId: 'test-call-id-yolo' },
+          request: { callId: 'test-call-id-wildcard' },
         },
       },
     ]);
@@ -788,7 +788,7 @@ describe('E2E Tests', () => {
       {
         data: {
           status: 'success',
-          request: { callId: 'test-call-id-yolo' },
+          request: { callId: 'test-call-id-wildcard' },
         },
       },
     ]);
diff --git a/packages/cli/src/commands/extensions/examples/policies/policies/policies.toml b/packages/cli/src/commands/extensions/examples/policies/policies/policies.toml
index 225627c59b..0d27721fc2 100644
--- a/packages/cli/src/commands/extensions/examples/policies/policies/policies.toml
+++ b/packages/cli/src/commands/extensions/examples/policies/policies/policies.toml
@@ -1,7 +1,7 @@
 # Example Policy Rules for Gemini CLI Extension
 #
 # Extensions run in Tier 2 (Extension Tier).
-# Security Note: 'allow' decisions and 'yolo' mode configurations are ignored.
+# Security Note: 'allow' decisions and wildcard policies are ignored.
 
 # Rule: Always ask the user before running a specific dangerous shell command.
 [[rule]]
diff --git a/packages/cli/src/config/config.test.ts b/packages/cli/src/config/config.test.ts
index d366e10261..0da98c67de 100644
--- a/packages/cli/src/config/config.test.ts
+++ b/packages/cli/src/config/config.test.ts
@@ -158,7 +158,7 @@ vi.mock('@google/gemini-cli-core', async () => {
     ),
     getAdminErrorMessage: vi.fn(
       (_feature) =>
-        `YOLO mode is disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli`,
+        `Wildcard policies are disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli`,
     ),
     isHeadlessMode: vi.fn((opts) => {
       if (process.env['VITEST'] === 'true') {
@@ -1445,7 +1445,7 @@ describe('Approval mode tool exclusion logic', () => {
     expect(excludedTools).toContain(ASK_USER_TOOL_NAME);
   });
 
-  it('should throw an error if YOLO mode is attempted when disableYoloMode is true', async () => {
+  it('should throw an error if wildcard policy is attempted when disableYoloMode is true', async () => {
     process.argv = ['node', 'script.js', '--yolo'];
     const argv = await parseArguments(createTestMergedSettings());
     const settings = createTestMergedSettings({
@@ -1455,7 +1455,7 @@ describe('Approval mode tool exclusion logic', () => {
     });
 
     await expect(loadCliConfig(settings, 'test-session', argv)).rejects.toThrow(
-      'YOLO mode is disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
+      'Wildcard policies are disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
     );
   });
 
@@ -1472,7 +1472,7 @@ describe('Approval mode tool exclusion logic', () => {
     await expect(
       loadCliConfig(settings, 'test-session', invalidArgv as CliArgs),
     ).rejects.toThrow(
-      'Invalid approval mode: invalid_mode. Valid values are: auto_edit, plan, default (yolo is mapped to allowed-tools)',
+      'Invalid approval mode: invalid_mode. Valid values are: auto_edit, plan, default ',
     );
   });
 
@@ -2332,7 +2332,7 @@ describe('loadCliConfig tool exclusions', () => {
     vi.restoreAllMocks();
   });
 
-  it('should not exclude interactive tools in interactive mode without YOLO', async () => {
+  it('should not exclude interactive tools in interactive mode without wildcard', async () => {
     process.stdin.isTTY = true;
     process.argv = ['node', 'script.js'];
     const argv = await parseArguments(createTestMergedSettings());
@@ -2347,7 +2347,7 @@ describe('loadCliConfig tool exclusions', () => {
     expect(config.getExcludeTools()).not.toContain('ask_user');
   });
 
-  it('should not exclude interactive tools in interactive mode with YOLO', async () => {
+  it('should not exclude interactive tools in interactive mode with wildcard', async () => {
     process.stdin.isTTY = true;
     process.argv = ['node', 'script.js', '--yolo'];
     const argv = await parseArguments(createTestMergedSettings());
@@ -2362,7 +2362,7 @@ describe('loadCliConfig tool exclusions', () => {
     expect(config.getExcludeTools()).not.toContain('ask_user');
   });
 
-  it('should exclude interactive tools in non-interactive mode without YOLO', async () => {
+  it('should exclude interactive tools in non-interactive mode without wildcard', async () => {
     process.stdin.isTTY = false;
     process.argv = ['node', 'script.js', '-p', 'test'];
     const argv = await parseArguments(createTestMergedSettings());
@@ -2377,7 +2377,7 @@ describe('loadCliConfig tool exclusions', () => {
     expect(config.getExcludeTools()).toContain('ask_user');
   });
 
-  it('should exclude only ask_user in non-interactive mode with YOLO', async () => {
+  it('should exclude only ask_user in non-interactive mode with wildcard', async () => {
     process.stdin.isTTY = false;
     process.argv = ['node', 'script.js', '-p', 'test', '--yolo'];
     const argv = await parseArguments(createTestMergedSettings());
@@ -2742,7 +2742,7 @@ describe('loadCliConfig approval mode', () => {
     expect(config.getApprovalMode()).toBe(ServerConfig.ApprovalMode.DEFAULT);
   });
 
-  it('should set YOLO approval mode when --yolo flag is used', async () => {
+  it('should set wildcard allowed tools when --yolo flag is used', async () => {
     process.argv = ['node', 'script.js', '--yolo'];
     const argv = await parseArguments(createTestMergedSettings());
     const config = await loadCliConfig(
@@ -2751,9 +2751,10 @@ describe('loadCliConfig approval mode', () => {
       argv,
     );
     expect(config.getApprovalMode()).toBe(ServerConfig.ApprovalMode.DEFAULT);
+    expect(config.getAllowedTools()).toEqual(['*']);
   });
 
-  it('should set YOLO approval mode when -y flag is used', async () => {
+  it('should set wildcard allowed tools when -y flag is used', async () => {
     process.argv = ['node', 'script.js', '-y'];
     const argv = await parseArguments(createTestMergedSettings());
     const config = await loadCliConfig(
@@ -2762,6 +2763,7 @@ describe('loadCliConfig approval mode', () => {
       argv,
     );
     expect(config.getApprovalMode()).toBe(ServerConfig.ApprovalMode.DEFAULT);
+    expect(config.getAllowedTools()).toEqual(['*']);
   });
 
   it('should set DEFAULT approval mode when --approval-mode=default', async () => {
@@ -2786,7 +2788,7 @@ describe('loadCliConfig approval mode', () => {
     expect(config.getApprovalMode()).toBe(ServerConfig.ApprovalMode.AUTO_EDIT);
   });
 
-  it('should set YOLO approval mode when --approval-mode=yolo', async () => {
+  it('should set wildcard allowed tools when --approval-mode=yolo', async () => {
     process.argv = ['node', 'script.js', '--approval-mode', 'yolo'];
     const argv = await parseArguments(createTestMergedSettings());
     const config = await loadCliConfig(
@@ -2795,6 +2797,7 @@ describe('loadCliConfig approval mode', () => {
       argv,
     );
     expect(config.getApprovalMode()).toBe(ServerConfig.ApprovalMode.DEFAULT);
+    expect(config.getAllowedTools()).toEqual(['*']);
   });
 
   it('should prioritize --approval-mode over --yolo when both would be valid (but validation prevents this)', async () => {
@@ -2821,6 +2824,7 @@ describe('loadCliConfig approval mode', () => {
       argv,
     );
     expect(config.getApprovalMode()).toBe(ServerConfig.ApprovalMode.DEFAULT);
+    expect(config.getAllowedTools()).toEqual(['*']);
   });
 
   it('should set Plan approval mode when --approval-mode=plan is used and plan is enabled', async () => {
@@ -3629,14 +3633,25 @@ describe('loadCliConfig disableYoloMode', () => {
     expect(config.getApprovalMode()).toBe(ApprovalMode.AUTO_EDIT);
   });
 
-  it('should throw if YOLO mode is attempted when disableYoloMode is true', async () => {
+  it('should throw if wildcard policy is attempted when disableYoloMode is true', async () => {
     process.argv = ['node', 'script.js', '--yolo'];
     const argv = await parseArguments(createTestMergedSettings());
     const settings = createTestMergedSettings({
       security: { disableYoloMode: true },
     });
     await expect(loadCliConfig(settings, 'test-session', argv)).rejects.toThrow(
-      'YOLO mode is disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
+      'Wildcard policies are disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
+    );
+  });
+
+  it('should throw if wildcard tools are requested when disableYoloMode is true', async () => {
+    process.argv = ['node', 'script.js', '--allowed-tools=*'];
+    const argv = await parseArguments(createTestMergedSettings());
+    const settings = createTestMergedSettings({
+      security: { disableYoloMode: true },
+    });
+    await expect(loadCliConfig(settings, 'test-session', argv)).rejects.toThrow(
+      'Wildcard policies are disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
     );
   });
 });
@@ -3658,7 +3673,7 @@ describe('loadCliConfig secureModeEnabled', () => {
     vi.restoreAllMocks();
   });
 
-  it('should throw an error if YOLO mode is attempted when secureModeEnabled is true', async () => {
+  it('should throw an error if wildcard policy is attempted when secureModeEnabled is true', async () => {
     process.argv = ['node', 'script.js', '--yolo'];
     const argv = await parseArguments(createTestMergedSettings());
     const settings = createTestMergedSettings({
@@ -3668,7 +3683,7 @@ describe('loadCliConfig secureModeEnabled', () => {
     });
 
     await expect(loadCliConfig(settings, 'test-session', argv)).rejects.toThrow(
-      'YOLO mode is disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
+      'Wildcard policies are disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
     );
   });
 
@@ -3682,7 +3697,21 @@ describe('loadCliConfig secureModeEnabled', () => {
     });
 
     await expect(loadCliConfig(settings, 'test-session', argv)).rejects.toThrow(
-      'YOLO mode is disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
+      'Wildcard policies are disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
+    );
+  });
+
+  it('should throw an error if wildcard tools are requested when secureModeEnabled is true', async () => {
+    process.argv = ['node', 'script.js', '--allowed-tools=*'];
+    const argv = await parseArguments(createTestMergedSettings());
+    const settings = createTestMergedSettings({
+      admin: {
+        secureModeEnabled: true,
+      },
+    });
+
+    await expect(loadCliConfig(settings, 'test-session', argv)).rejects.toThrow(
+      'Wildcard policies are disabled by your administrator. To enable it, please request an update to the settings at: https://goo.gle/manage-gemini-cli',
     );
   });
 
diff --git a/packages/cli/src/config/config.ts b/packages/cli/src/config/config.ts
index feae1082c0..c535730a4e 100755
--- a/packages/cli/src/config/config.ts
+++ b/packages/cli/src/config/config.ts
@@ -687,7 +687,7 @@ export async function loadCliConfig(
         break;
       default:
         throw new Error(
-          `Invalid approval mode: ${rawApprovalMode}. Valid values are: auto_edit, plan, default (yolo is mapped to allowed-tools)`,
+          `Invalid approval mode: ${rawApprovalMode}. Valid values are: auto_edit, plan, default`,
         );
     }
   } else {
@@ -700,20 +700,20 @@ export async function loadCliConfig(
     if (isYoloRequested || allowedTools.includes('*')) {
       if (settings.admin?.secureModeEnabled) {
         debugLogger.error(
-          'YOLO mode (wildcard policies) are disabled by "secureModeEnabled" setting.',
+          'Wildcard policies are disabled by "secureModeEnabled" setting.',
         );
       } else {
         debugLogger.error(
-          'YOLO mode (wildcard policies) are disabled by the "disableYolo" setting.',
+          'Wildcard policies are disabled by the "disableYolo" setting.',
         );
       }
       throw new FatalConfigError(
-        getAdminErrorMessage('YOLO mode', undefined /* config */),
+        getAdminErrorMessage('Wildcard policies', undefined /* config */),
       );
     }
   } else if (isYoloRequested) {
     debugLogger.warn(
-      'YOLO mode is enabled via flag or setting. All tool calls will be automatically approved by a wildcard policy.',
+      'Wildcard policy is enabled via flag or setting. All tool calls will be automatically approved.',
     );
     if (!allowedTools.includes('*')) {
       allowedTools = [...allowedTools, '*'];
diff --git a/packages/cli/src/config/settingsSchema.ts b/packages/cli/src/config/settingsSchema.ts
index 9b62c9d93f..919e8e1df1 100644
--- a/packages/cli/src/config/settingsSchema.ts
+++ b/packages/cli/src/config/settingsSchema.ts
@@ -2626,7 +2626,7 @@ const SETTINGS_SCHEMA = {
         requiresRestart: false,
         default: false,
         description:
-          'If true, disallows YOLO mode and "Always allow" options from being used.',
+          'If true, disallows YOLO mode (wildcard policies) and "Always allow" options from being used.',
         showInDialog: false,
         mergeStrategy: MergeStrategy.REPLACE,
       },
diff --git a/packages/cli/src/ui/components/ApprovalModeIndicator.test.tsx b/packages/cli/src/ui/components/ApprovalModeIndicator.test.tsx
index 853986417d..07ce90e3be 100644
--- a/packages/cli/src/ui/components/ApprovalModeIndicator.test.tsx
+++ b/packages/cli/src/ui/components/ApprovalModeIndicator.test.tsx
@@ -38,7 +38,7 @@ describe('ApprovalModeIndicator', () => {
     const { lastFrame, waitUntilReady } = await render(
       <ApprovalModeIndicator
         approvalMode={ApprovalMode.DEFAULT}
-        isYoloMode={true}
+        isWildcardPolicyEnabled={true}
       />,
     );
     expect(lastFrame()).toMatchSnapshot();
diff --git a/packages/cli/src/ui/components/ApprovalModeIndicator.tsx b/packages/cli/src/ui/components/ApprovalModeIndicator.tsx
index 6c39f3e64c..37cfb4fd21 100644
--- a/packages/cli/src/ui/components/ApprovalModeIndicator.tsx
+++ b/packages/cli/src/ui/components/ApprovalModeIndicator.tsx
@@ -14,13 +14,13 @@ import { Command } from '../key/keyBindings.js';
 interface ApprovalModeIndicatorProps {
   approvalMode: ApprovalMode;
   allowPlanMode?: boolean;
-  isYoloMode?: boolean;
+  isWildcardPolicyEnabled?: boolean;
 }
 
 export const ApprovalModeIndicator: React.FC<ApprovalModeIndicatorProps> = ({
   approvalMode,
   allowPlanMode,
-  isYoloMode,
+  isWildcardPolicyEnabled,
 }) => {
   let textColor = '';
   let textContent = '';
@@ -28,9 +28,9 @@ export const ApprovalModeIndicator: React.FC<ApprovalModeIndicatorProps> = ({
 
   const cycleHint = formatCommand(Command.CYCLE_APPROVAL_MODE);
 
-  if (isYoloMode) {
+  if (isWildcardPolicyEnabled) {
     textColor = theme.status.error;
-    textContent = 'YOLO';
+    textContent = 'WILDCARD';
     subText = '';
   } else {
     switch (approvalMode) {
diff --git a/packages/cli/src/ui/components/Composer.test.tsx b/packages/cli/src/ui/components/Composer.test.tsx
index 31a398bb12..aef865ccd6 100644
--- a/packages/cli/src/ui/components/Composer.test.tsx
+++ b/packages/cli/src/ui/components/Composer.test.tsx
@@ -640,7 +640,7 @@ describe('Composer', () => {
       },
     );
 
-    it('shows ApprovalModeIndicator when YOLO mode is active and shell mode is inactive', async () => {
+    it('shows ApprovalModeIndicator when wildcard policy is active and shell mode is inactive', async () => {
       const config = createMockConfig({
         getAllowedTools: vi.fn(() => ['*']),
       });
@@ -703,7 +703,7 @@ describe('Composer', () => {
       },
     );
 
-    it('shows minimal mode badge "YOLO" when clean UI details are hidden and YOLO mode is active', async () => {
+    it('shows minimal mode badge "WILDCARD" when clean UI details are hidden and wildcard policy is active', async () => {
       const config = createMockConfig({
         getAllowedTools: vi.fn(() => ['*']),
       });
@@ -713,7 +713,7 @@ describe('Composer', () => {
       });
 
       const { lastFrame } = await renderComposer(uiState, undefined, config);
-      expect(lastFrame()).toContain('YOLO');
+      expect(lastFrame()).toContain('WILDCARD');
     });
 
     it('hides minimal mode badge while loading in clean mode', async () => {
diff --git a/packages/cli/src/ui/components/Composer.tsx b/packages/cli/src/ui/components/Composer.tsx
index 6e5c059668..d281801d50 100644
--- a/packages/cli/src/ui/components/Composer.tsx
+++ b/packages/cli/src/ui/components/Composer.tsx
@@ -77,7 +77,7 @@ export const Composer = ({ isFocused = true }: { isFocused?: boolean }) => {
   const hasToast = shouldShowToast(uiState);
   const hideUiDetailsForSuggestions =
     suggestionsVisible && suggestionsPosition === 'above';
-  const isYoloMode = config.getAllowedTools()?.includes('*');
+  const isWildcardPolicyEnabled = config.getAllowedTools()?.includes('*');
 
   // Mini Mode VIP Flags (Pure Content Triggers)
   const showMinimalToast = hasToast;
@@ -148,7 +148,7 @@ export const Composer = ({ isFocused = true }: { isFocused?: boolean }) => {
           shellModeActive={uiState.shellModeActive}
           setShellModeActive={uiActions.setShellModeActive}
           approvalMode={uiState.showApprovalModeIndicator}
-          isYoloMode={isYoloMode}
+          isWildcardPolicyEnabled={isWildcardPolicyEnabled}
           onEscapePromptChange={uiActions.onEscapePromptChange}
           focus={isFocused}
           vimHandleInput={uiActions.vimHandleInput}
diff --git a/packages/cli/src/ui/components/InputPrompt.tsx b/packages/cli/src/ui/components/InputPrompt.tsx
index 130cd49bf7..8823113881 100644
--- a/packages/cli/src/ui/components/InputPrompt.tsx
+++ b/packages/cli/src/ui/components/InputPrompt.tsx
@@ -110,7 +110,7 @@ export interface InputPromptProps {
   shellModeActive: boolean;
   setShellModeActive: (value: boolean) => void;
   approvalMode: ApprovalMode;
-  isYoloMode?: boolean;
+  isWildcardPolicyEnabled?: boolean;
   onEscapePromptChange?: (showPrompt: boolean) => void;
   onSuggestionsVisibilityChange?: (visible: boolean) => void;
   vimHandleInput?: (key: Key) => boolean;
@@ -206,7 +206,7 @@ export const InputPrompt: React.FC<InputPromptProps> = ({
   shellModeActive,
   setShellModeActive,
   approvalMode,
-  isYoloMode,
+  isWildcardPolicyEnabled,
   onEscapePromptChange,
   onSuggestionsVisibilityChange,
   vimHandleInput,
@@ -1491,7 +1491,7 @@ export const InputPrompt: React.FC<InputPromptProps> = ({
 
   const showAutoAcceptStyling =
     !shellModeActive && approvalMode === ApprovalMode.AUTO_EDIT;
-  const showYoloStyling = !shellModeActive && isYoloMode;
+  const showWildcardStyling = !shellModeActive && isWildcardPolicyEnabled;
   const showPlanStyling =
     !shellModeActive && approvalMode === ApprovalMode.PLAN;
 
@@ -1500,9 +1500,9 @@ export const InputPrompt: React.FC<InputPromptProps> = ({
   if (shellModeActive) {
     statusColor = theme.ui.symbol;
     statusText = 'Shell mode';
-  } else if (showYoloStyling) {
+  } else if (showWildcardStyling) {
     statusColor = theme.status.error;
-    statusText = 'YOLO mode';
+    statusText = 'Wildcard policy';
   } else if (showPlanStyling) {
     statusColor = theme.status.success;
     statusText = 'Plan mode';
@@ -1590,7 +1590,7 @@ export const InputPrompt: React.FC<InputPromptProps> = ({
               )
             ) : commandSearchActive ? (
               <Text color={theme.text.accent}>(r:) </Text>
-            ) : showYoloStyling ? (
+            ) : showWildcardStyling ? (
               '*'
             ) : (
               '>'
diff --git a/packages/cli/src/ui/components/__snapshots__/ApprovalModeIndicator.test.tsx.snap b/packages/cli/src/ui/components/__snapshots__/ApprovalModeIndicator.test.tsx.snap
index 4e1c6efcd6..93cb93a386 100644
--- a/packages/cli/src/ui/components/__snapshots__/ApprovalModeIndicator.test.tsx.snap
+++ b/packages/cli/src/ui/components/__snapshots__/ApprovalModeIndicator.test.tsx.snap
@@ -26,6 +26,6 @@ exports[`ApprovalModeIndicator > renders correctly for PLAN mode 1`] = `
 `;
 
 exports[`ApprovalModeIndicator > renders correctly for YOLO mode 1`] = `
-"YOLO
+"WILDCARD
 "
 `;
diff --git a/packages/core/src/core/prompts.test.ts b/packages/core/src/core/prompts.test.ts
index 57cab1247b..608757bbdc 100644
--- a/packages/core/src/core/prompts.test.ts
+++ b/packages/core/src/core/prompts.test.ts
@@ -599,27 +599,27 @@ describe('Core System Prompt (prompts.ts)', () => {
       });
     });
 
-    it('should include YOLO mode instructions in interactive mode', () => {
+    it('should include wildcard policy instructions in interactive mode', () => {
       vi.mocked(mockConfig.getAllowedTools).mockReturnValue(['*']);
       vi.mocked(mockConfig.isInteractive).mockReturnValue(true);
       const prompt = getCoreSystemPrompt(mockConfig);
-      expect(prompt).toContain('# Autonomous Mode (YOLO)');
+      expect(prompt).toContain('# Autonomous Mode (Wildcard Policy)');
       expect(prompt).toContain('Only use the `ask_user` tool if');
     });
 
-    it('should NOT include YOLO mode instructions in non-interactive mode', () => {
+    it('should NOT include wildcard policy instructions in non-interactive mode', () => {
       vi.mocked(mockConfig.getAllowedTools).mockReturnValue(['*']);
       vi.mocked(mockConfig.isInteractive).mockReturnValue(false);
       const prompt = getCoreSystemPrompt(mockConfig);
-      expect(prompt).not.toContain('# Autonomous Mode (YOLO)');
+      expect(prompt).not.toContain('# Autonomous Mode (Wildcard Policy)');
     });
 
-    it('should NOT include YOLO mode instructions for DEFAULT mode', () => {
+    it('should NOT include wildcard policy instructions for DEFAULT mode', () => {
       vi.mocked(mockConfig.getApprovalMode).mockReturnValue(
         ApprovalMode.DEFAULT,
       );
       const prompt = getCoreSystemPrompt(mockConfig);
-      expect(prompt).not.toContain('# Autonomous Mode (YOLO)');
+      expect(prompt).not.toContain('# Autonomous Mode (Wildcard Policy)');
     });
   });
 
diff --git a/packages/core/src/policy/types.ts b/packages/core/src/policy/types.ts
index 46b07d8ce3..975ba3fb86 100644
--- a/packages/core/src/policy/types.ts
+++ b/packages/core/src/policy/types.ts
@@ -359,7 +359,7 @@ export const ALWAYS_ALLOW_PRIORITY_OFFSET =
   ALWAYS_ALLOW_PRIORITY_FRACTION / 1000;
 
 /**
- * Priority for the YOLO "allow all" rule.
- * Matches the raw priority used in yolo.toml.
+ * Priority for the wildcard "allow all" rule.
+ * Matches the raw priority previously used for the wildcard allow all override.
  */
-export const PRIORITY_YOLO_ALLOW_ALL = 998;
+export const PRIORITY_WILDCARD_ALLOW_ALL = 998;
diff --git a/packages/core/src/prompts/snippets.legacy.ts b/packages/core/src/prompts/snippets.legacy.ts
index 4fea88937b..f980979424 100644
--- a/packages/core/src/prompts/snippets.legacy.ts
+++ b/packages/core/src/prompts/snippets.legacy.ts
@@ -331,7 +331,7 @@ You are running outside of a sandbox container, directly on the user's system. F
 export function renderInteractiveYoloMode(enabled?: boolean): string {
   if (!enabled) return '';
   return `
-# Autonomous Mode (YOLO)
+# Autonomous Mode (Wildcard Policy)
 
 You are operating in **autonomous mode**. The user has requested minimal interruption.
 
diff --git a/packages/core/src/prompts/snippets.ts b/packages/core/src/prompts/snippets.ts
index 5440583419..5c3bcc956f 100644
--- a/packages/core/src/prompts/snippets.ts
+++ b/packages/core/src/prompts/snippets.ts
@@ -444,7 +444,7 @@ export function renderSandbox(options?: SandboxOptions): string {
 export function renderInteractiveYoloMode(enabled?: boolean): string {
   if (!enabled) return '';
   return `
-# Autonomous Mode (YOLO)
+# Autonomous Mode (Wildcard Policy)
 
 You are operating in **autonomous mode**. The user has requested minimal interruption.
 
diff --git a/schemas/settings.schema.json b/schemas/settings.schema.json
index fd4fff0036..98dde1d066 100644
--- a/schemas/settings.schema.json
+++ b/schemas/settings.schema.json
@@ -3251,8 +3251,8 @@
       "properties": {
         "secureModeEnabled": {
           "title": "Secure Mode Enabled",
-          "description": "If true, disallows YOLO mode and \"Always allow\" options from being used.",
-          "markdownDescription": "If true, disallows YOLO mode and \"Always allow\" options from being used.\n\n- Category: `Admin`\n- Requires restart: `no`\n- Default: `false`",
+          "description": "If true, disallows YOLO mode (wildcard policies) and \"Always allow\" options from being used.",
+          "markdownDescription": "If true, disallows YOLO mode (wildcard policies) and \"Always allow\" options from being used.\n\n- Category: `Admin`\n- Requires restart: `no`\n- Default: `false`",
           "default": false,
           "type": "boolean"
         },