diff --git a/packages/opencode/src/altimate/tool-label.ts b/packages/opencode/src/altimate/tool-label.ts
new file mode 100644
index 000000000..30213c2b5
--- /dev/null
+++ b/packages/opencode/src/altimate/tool-label.ts
@@ -0,0 +1,98 @@
+/**
+ * Produces a readable, dbt-aware title for a tool call — e.g. "Reading customers
+ * model" instead of a bare file path — so any client (chat webview, TUI, ...) can
+ * render a descriptive label straight from the tool part's `state.title`.
+ *
+ * This is the source of truth for tool-call labels: it runs inside the tool
+ * execute() wrapper (see `tool/tool.ts`) and rewrites the title every tool
+ * returns. Only file-acting tools (whose native title is a bare path) are
+ * rewritten; every other tool keeps the rich title it already emits.
+ *
+ * dbt naming ("model"/"seed"/...) is applied only when the path sits under the
+ * matching directory, so it degrades to the plain filename off-dbt.
+ */
+
+/** File-acting tools whose native title is a bare path → gerund verb. */
+const FILE_TOOL_VERBS: Record<string, string> = {
+  read: "Reading",
+  write: "Writing",
+  edit: "Editing",
+  multiedit: "Editing",
+  glob: "Searching",
+  grep: "Searching",
+  list: "Listing",
+}
+
+/** dbt directory → singular noun used in the label. */
+const DBT_DIR_KIND: Record<string, string> = {
+  models: "model",
+  seeds: "seed",
+  macros: "macro",
+  snapshots: "snapshot",
+  tests: "test",
+  analyses: "analysis",
+  analysis: "analysis",
+}
+
+function asString(value: unknown): string | undefined {
+  return typeof value === "string" && value.trim() ? value : undefined
+}
+
+/** dbt file extensions that mark a target as a single dbt node (model/seed/...). */
+const DBT_FILE_EXT = /\.(sql|ya?ml|csv|py|md)$/i
+
+/**
+ * Turn a file path into a friendly target:
+ *  - a dbt *file* under a known dbt dir → "<name> <kind>" with the extension stripped
+ *  - otherwise → the basename (e.g. "dbt_project.yml", "index.ts", or a directory name)
+ *
+ * The dbt-kind rewrite is gated on a recognized dbt file extension so directory
+ * targets (e.g. `list models/staging`) aren't mislabeled as a single model, and
+ * the nearest dbt ancestor is matched by scanning right-to-left so a coincidental
+ * outer directory name (e.g. a repo called `models/`) doesn't win over the real one.
+ */
+function friendlyTarget(rawPath: string): string {
+  const segments = rawPath.replace(/\\/g, "/").replace(/^\.\//, "").split("/").filter(Boolean)
+  const base = segments[segments.length - 1] ?? rawPath
+  if (DBT_FILE_EXT.test(base)) {
+    for (let i = segments.length - 2; i >= 0; i--) {
+      const kind = DBT_DIR_KIND[segments[i].toLowerCase()]
+      if (kind) {
+        return `${base.replace(DBT_FILE_EXT, "")} ${kind}`
+      }
+    }
+  }
+  return base
+}
+
+/** Extract the display target for a given file tool from its input args. */
+function fileTarget(tool: string, input: Record<string, unknown>): string | undefined {
+  if (tool === "glob" || tool === "grep") {
+    return asString(input["pattern"])
+  }
+  if (tool === "list") {
+    const path = asString(input["path"])
+    return path ? friendlyTarget(path) : undefined
+  }
+  // read / write / edit / multiedit
+  const filePath = asString(input["filePath"]) ?? asString(input["path"])
+  return filePath ? friendlyTarget(filePath) : undefined
+}
+
+/**
+ * @param tool     the tool id (e.g. "read", "sql_analyze")
+ * @param input    the tool's input args
+ * @param rawTitle the title the tool itself returned (a bare path for file tools,
+ *                 already human-readable for everything else)
+ * @returns a humanized label for file tools, otherwise the tool's own title.
+ */
+export function describeToolCall(tool: string, input: unknown, rawTitle?: string): string | undefined {
+  const fallback = asString(rawTitle)
+  const verb = FILE_TOOL_VERBS[tool]
+  if (verb && input && typeof input === "object") {
+    const target = fileTarget(tool, input as Record<string, unknown>)
+    if (target) return `${verb} ${target}`
+  }
+  // Non-file / rich-title tools: keep the title the tool already emitted.
+  return fallback
+}
diff --git a/packages/opencode/src/altimate/tool-source.ts b/packages/opencode/src/altimate/tool-source.ts
new file mode 100644
index 000000000..e26bad8ce
--- /dev/null
+++ b/packages/opencode/src/altimate/tool-source.ts
@@ -0,0 +1,176 @@
+/**
+ * Authoritative classification of a tool call's origin, stamped onto the tool
+ * part's `state.metadata.source` so clients (chat webview, ...) render the right
+ * badge without re-deriving it from tool-name prefixes.
+ *
+ *  - "builtin"  — native opencode tools (read/glob/bash/...)
+ *  - "altimate" — Altimate-provided tools (sql_*, schema_*, finops_*, ...) AND
+ *                 tools from the Datamates MCP server (Altimate-owned, just
+ *                 delivered over MCP)
+ *  - "mcp"      — third-party MCP tools
+ *
+ * Registry tools and MCP tools are resolved in separate loops (see
+ * `session/prompt.ts` resolveTools and `session/tools.ts` SessionTools.resolve),
+ * so each has its own classifier — but both loops stamp via the shared
+ * `stampRegistryToolSource` / `describeMcpTool` helpers below so they can't drift.
+ * The native `skill` tool is a further special case: it loads skills of varying
+ * origin, so its badge is classified per-call from the loaded skill's origin (see
+ * `skillToolSource`) rather than from the tool id.
+ */
+export type ToolSource = "builtin" | "altimate" | "mcp"
+
+/**
+ * Where a registry tool comes from, declared at registration time so we don't
+ * have to infer ownership from the tool id:
+ *  - "native"   — a native opencode tool (read/glob/bash/...)
+ *  - "altimate" — an Altimate-shipped tool registered directly in the registry
+ *  - "external" — a user-authored custom tool or a third-party plugin tool
+ *
+ * Only "external" strictly needs to be declared: without it, the id-based
+ * fallback in `registryToolSource` treats every non-native id as Altimate, which
+ * over-claims ownership of custom/plugin tools (see `fromPlugin` in
+ * `tool/registry.ts`). Native and Altimate tools may omit it and rely on the id
+ * fallback.
+ */
+export type RegistryToolOrigin = "native" | "altimate" | "external"
+
+/**
+ * Native opencode tool ids. This set is small and stable; every other tool in
+ * the registry is Altimate-provided, so new Altimate tools classify correctly
+ * with no per-tool maintenance here.
+ */
+const NATIVE_TOOL_IDS = new Set<string>([
+  "invalid",
+  "question",
+  "bash",
+  "batch",
+  "read",
+  "glob",
+  "grep",
+  "list",
+  "edit",
+  "write",
+  "multiedit",
+  "task",
+  "webfetch",
+  "todowrite",
+  "todoread",
+  "websearch",
+  "codesearch",
+  "skill",
+  "apply_patch",
+  "lsp",
+  "plan_exit",
+  "plan_enter",
+  "StructuredOutput",
+])
+
+/** MCP client names that are Altimate-owned (Datamates as an MCP server). */
+const ALTIMATE_MCP_PREFIXES = ["datamate"]
+
+/**
+ * Classify a registry tool (never an MCP tool) as builtin vs Altimate. Prefers
+ * the origin declared at registration; only falls back to the id when a tool
+ * doesn't declare one (native + Altimate tools registered directly). "external"
+ * (user custom / third-party plugin) maps to the neutral "builtin" badge so the
+ * Altimate mark never over-claims tools we don't own.
+ */
+export function registryToolSource(id: string, origin?: RegistryToolOrigin): ToolSource {
+  switch (origin) {
+    case "external":
+      return "builtin"
+    case "altimate":
+      return "altimate"
+    case "native":
+      return "builtin"
+  }
+  return NATIVE_TOOL_IDS.has(id) ? "builtin" : "altimate"
+}
+
+/**
+ * Classify an MCP tool by its original (pre-sanitize) client name: Altimate
+ * (Datamates) vs third-party. Classifying from the real client name — rather than
+ * re-parsing the flattened `<client>_<tool>` key — avoids mislabeling a
+ * third-party server whose name sanitizes into a `datamate…`-prefixed key (e.g.
+ * client `datamate.ai` → key `datamate_ai_query`, whose first segment is
+ * `datamate`). Accepts the exact name, its plural (`datamates`), and a
+ * `datamate-…` prefixed client.
+ */
+export function mcpToolSource(clientName: string): ToolSource {
+  const client = clientName.toLowerCase()
+  return ALTIMATE_MCP_PREFIXES.some((p) => client === p || client === `${p}s` || client.startsWith(`${p}-`))
+    ? "altimate"
+    : "mcp"
+}
+
+/**
+ * Classify a skill-load (the native `skill` tool) by the loaded skill's origin,
+ * which the skill tool reports on its metadata (see `tool/skill.ts`). Altimate
+ * ships its skills bundled with the CLI ("builtin" origin) — those wear the
+ * Altimate mark. User-authored global/project skills stay neutral so the badge
+ * doesn't over-claim third-party or personal skills. Origin arrives as `unknown`
+ * (client metadata), so anything other than "builtin" is treated as neutral.
+ */
+export function skillToolSource(origin: unknown): ToolSource {
+  return origin === "builtin" ? "altimate" : "builtin"
+}
+
+/** Mirror of `sanitize()` in `mcp/catalog.ts` — MCP keys are built from sanitized names. */
+const sanitizeMcpName = (value: string) => value.replace(/[^a-zA-Z0-9_-]/g, "_")
+
+/**
+ * Best-effort readable title for an MCP tool call, from its `<client>_<tool>`
+ * key — e.g. "datamates_jira_get_issue" → "Jira Get Issue". Strips the client
+ * segment and Title-Cases the rest. When the original client name is known the
+ * segment is stripped by its exact sanitized length (robust to client names that
+ * themselves contain underscores, e.g. `datamate.ai` → `datamate_ai`); otherwise
+ * it falls back to splitting on the first `_`. (Richer per-call titles are the
+ * MCP server's job; this is the fallback so MCP rows aren't a bare snake_case id.)
+ */
+export function humanizeMcpTitle(key: string, clientName?: string): string {
+  const prefix = clientName ? `${sanitizeMcpName(clientName)}_` : ""
+  const withoutClient =
+    prefix && key.startsWith(prefix)
+      ? key.slice(prefix.length)
+      : key.includes("_")
+        ? key.slice(key.indexOf("_") + 1)
+        : key
+  const words = (withoutClient || key).split(/[_-]+/).filter(Boolean)
+  if (words.length === 0) return key
+  return words.map((w) => w.charAt(0).toUpperCase() + w.slice(1)).join(" ")
+}
+
+/**
+ * A resolved registry tool, as seen by the two tool resolvers (`prompt.ts`
+ * resolveTools and `session/tools.ts` SessionTools.resolve).
+ */
+interface RegistryToolLike {
+  id: string
+  registrySource?: RegistryToolOrigin
+}
+
+/**
+ * Stamp the authoritative `source` badge onto a registry tool's output metadata.
+ * Shared by both tool resolvers so their per-call stamping cannot drift. The
+ * native `skill` tool is classified per-call from the loaded skill's origin
+ * (`state.metadata.skillOrigin`); every other tool from its declared/inferred
+ * origin.
+ */
+export function stampRegistryToolSource<T extends { metadata?: Record<string, any> }>(
+  output: T,
+  item: RegistryToolLike,
+): T & { metadata: Record<string, any> & { source: ToolSource } } {
+  const metadata = output.metadata ?? {}
+  const source =
+    item.id === "skill" ? skillToolSource(metadata.skillOrigin) : registryToolSource(item.id, item.registrySource)
+  return { ...output, metadata: { ...metadata, source } }
+}
+
+/**
+ * Authoritative `source` badge + readable `title` for an MCP tool call, derived
+ * from the original client name and the flattened key. Shared by both tool
+ * resolvers so MCP stamping cannot drift.
+ */
+export function describeMcpTool(key: string, clientName: string): { source: ToolSource; title: string } {
+  return { source: mcpToolSource(clientName), title: humanizeMcpTitle(key, clientName) }
+}
diff --git a/packages/opencode/src/mcp/index.ts b/packages/opencode/src/mcp/index.ts
index bd795650a..8f5ececa9 100644
--- a/packages/opencode/src/mcp/index.ts
+++ b/packages/opencode/src/mcp/index.ts
@@ -277,7 +277,9 @@ interface State {
 export interface Interface {
   readonly status: () => Effect.Effect<Record<string, Status>>
   readonly clients: () => Effect.Effect<Record<string, MCPClient>>
-  readonly tools: () => Effect.Effect<Record<string, Tool>>
+  // altimate_change — carry the original (pre-sanitize) client name so tool-source classification
+  // works from the real name, not the flattened `<client>_<tool>` key (see altimate/tool-source).
+  readonly tools: () => Effect.Effect<Record<string, Tool & { client: string }>>
   readonly prompts: () => Effect.Effect<Record<string, PromptInfo & { client: string }>>
   readonly resources: () => Effect.Effect<Record<string, ResourceInfo & { client: string }>>
   readonly add: (name: string, mcp: ConfigMCPV1.Info) => Effect.Effect<{ status: Record<string, Status> | Status }>
@@ -1010,7 +1012,8 @@ export const layer = Layer.effect(
     }
 
     const tools = Effect.fn("MCP.tools")(function* () {
-      const result: Record<string, Tool> = {}
+      // altimate_change — values carry the original client name (see Interface.tools).
+      const result: Record<string, Tool & { client: string }> = {}
       const s = yield* InstanceState.get(state)
 
       const cfg = yield* cfgSvc.get()
@@ -1028,7 +1031,8 @@ export const layer = Layer.effect(
         const timeout = requestTimeout(s, clientName, mcpConfig, defaultTimeout)
         for (const mcpTool of listed) {
           const key = McpCatalog.sanitize(clientName) + "_" + McpCatalog.sanitize(mcpTool.name)
-          result[key] = McpCatalog.convertTool(mcpTool, client, timeout)
+          // altimate_change — attach the original client name for source classification downstream.
+          result[key] = Object.assign(McpCatalog.convertTool(mcpTool, client, timeout), { client: clientName })
         }
       }
       return result
diff --git a/packages/opencode/src/session/prompt.ts b/packages/opencode/src/session/prompt.ts
index a953653cd..289bd8a74 100644
--- a/packages/opencode/src/session/prompt.ts
+++ b/packages/opencode/src/session/prompt.ts
@@ -71,6 +71,8 @@ import { registerAltimateValidators } from "../altimate/validators"
 registerAltimateValidators()
 import { Config } from "../config/config"
 import { Tracer } from "../altimate/observability/tracing"
+// altimate_change — stamp an authoritative tool source + humanized MCP title
+import { stampRegistryToolSource, describeMcpTool } from "../altimate/tool-source"
 // altimate_change end
 import { Telemetry } from "@/telemetry" // altimate_change — session telemetry
 
@@ -1607,6 +1609,9 @@ export namespace SessionPrompt {
               messageID: input.processor.message.id,
             })),
           }
+          // altimate_change — stamp authoritative tool source so clients render the right badge.
+          // Shared with SessionTools.resolve (session/tools.ts) so the two resolvers can't drift.
+          const stamped = stampRegistryToolSource(output, item)
           await Plugin.trigger(
             "tool.execute.after",
             {
@@ -1615,14 +1620,17 @@ export namespace SessionPrompt {
               callID: ctx.callID,
               args,
             },
-            output,
+            stamped,
           )
-          return output
+          return stamped
         },
       })
     }
 
-    for (const [key, item] of Object.entries(await MCP.tools())) {
+    for (const [key, entry] of Object.entries(await MCP.tools())) {
+      // altimate_change — split the original client name off the model-facing tool object so it's
+      // used only for source classification and never leaks into the tool schema sent to the model.
+      const { client: clientName, ...item } = entry
       const execute = item.execute
       if (!execute) continue
 
@@ -1700,14 +1708,19 @@ export namespace SessionPrompt {
         }
 
         const truncated = await Truncate.output(textParts.join("\n\n"), {}, input.agent)
+        // altimate_change — authoritative source + readable title from the original client name,
+        // shared with SessionTools.resolve (session/tools.ts) so the two resolvers can't drift.
+        const described = describeMcpTool(key, clientName)
         const metadata = {
           ...(result.metadata ?? {}),
           truncated: truncated.truncated,
           ...(truncated.truncated && { outputPath: truncated.outputPath }),
+          source: described.source,
         }
 
         return {
-          title: "",
+          // altimate_change — MCP tools have no native title; give a readable label
+          title: described.title,
           metadata,
           output: truncated.content,
           attachments: attachments.map((attachment) => ({
diff --git a/packages/opencode/src/session/tools.ts b/packages/opencode/src/session/tools.ts
index 0b8fd1c5b..907d8eb79 100644
--- a/packages/opencode/src/session/tools.ts
+++ b/packages/opencode/src/session/tools.ts
@@ -18,6 +18,8 @@ import { Session } from "./session"
 import { SessionProcessor } from "./processor"
 import { PartID } from "./schema"
 import { EffectBridge } from "@/effect/bridge"
+// altimate_change — shared tool-source stamping so this resolver can't drift from prompt.ts
+import { stampRegistryToolSource, describeMcpTool } from "@/altimate/tool-source"
 // altimate_change start — upstream_fix: ToolRegistry expects fork-branded model ids here
 import { ModelID } from "@/provider/schema"
 // altimate_change end
@@ -102,22 +104,27 @@ export const resolve = Effect.fn("SessionTools.resolve")(function* (input: {
                 messageID: input.processor.message.id,
               })),
             }
+            // altimate_change — stamp authoritative tool source (shared with prompt.ts resolveTools)
+            const stamped = stampRegistryToolSource(output, item)
             yield* plugin.trigger(
               "tool.execute.after",
               { tool: item.id, sessionID: ctx.sessionID, callID: ctx.callID, args },
-              output,
+              stamped,
             )
             if (options.abortSignal?.aborted) {
-              yield* input.processor.completeToolCall(options.toolCallId, output)
+              yield* input.processor.completeToolCall(options.toolCallId, stamped)
             }
-            return output
+            return stamped
           }),
         )
       },
     })
   }
 
-  for (const [key, item] of Object.entries(yield* mcp.tools())) {
+  for (const [key, entry] of Object.entries(yield* mcp.tools())) {
+    // altimate_change — split the original client name off the model-facing tool object so it's
+    // used only for source classification and never leaks into the tool schema sent to the model.
+    const { client: clientName, ...item } = entry
     const execute = item.execute
     if (!execute) continue
 
@@ -177,14 +184,18 @@ export const resolve = Effect.fn("SessionTools.resolve")(function* (input: {
           }
 
           const truncated = yield* truncate.output(textParts.join("\n\n"), {}, input.agent)
+          // altimate_change — authoritative source + readable title from the original client name,
+          // shared with prompt.ts resolveTools so the two resolvers can't drift.
+          const described = describeMcpTool(key, clientName)
           const metadata = {
             ...result.metadata,
             truncated: truncated.truncated,
             ...(truncated.truncated && { outputPath: truncated.outputPath }),
+            source: described.source,
           }
 
           const output = {
-            title: "",
+            title: described.title,
             metadata,
             output: truncated.content,
             attachments: attachments.map((attachment) => ({
diff --git a/packages/opencode/src/tool/registry.ts b/packages/opencode/src/tool/registry.ts
index d88d64b53..17236cb39 100644
--- a/packages/opencode/src/tool/registry.ts
+++ b/packages/opencode/src/tool/registry.ts
@@ -240,6 +240,10 @@ export namespace ToolRegistry {
   function fromPlugin(id: string, def: ToolDefinition): Tool.Info {
     return {
       id,
+      // altimate_change — user custom tools (file-scanned) and third-party plugin tools both flow
+      // through here; mark them "external" so the tool-source badge stays neutral and never
+      // over-claims them as Altimate-owned.
+      registrySource: "external",
       init: () =>
         legacyToInit({
           // altimate_change start — tolerate JSON-Schema-shaped legacy args (see argsToZodShape)
@@ -555,6 +559,8 @@ export namespace ToolRegistry {
           await Plugin.trigger("tool.definition", { toolID: t.id }, output)
           return {
             id: t.id,
+            // altimate_change — carry declared origin to the resolvers' source-badge stamping.
+            registrySource: t.registrySource,
             // altimate_change start — upstream_fix: hide disabled runtime-gated tool schema fields.
             ...applyRuntimeToolSchemaFlags(t.id, tool, runtimeFlags),
             // altimate_change end
diff --git a/packages/opencode/src/tool/skill.ts b/packages/opencode/src/tool/skill.ts
index 78ea4d645..53a1dc481 100644
--- a/packages/opencode/src/tool/skill.ts
+++ b/packages/opencode/src/tool/skill.ts
@@ -17,10 +17,22 @@ import os from "os"
 
 const MAX_DISPLAY_SKILLS = 50
 
-// altimate_change start — classifySkillSource helper for skill telemetry
-function classifySkillSource(location: string): "builtin" | "global" | "project" {
-  if (location.includes("node_modules") || location.includes(".altimate/builtin")) return "builtin"
-  if (location.startsWith(os.homedir())) return "global"
+// altimate_change start — classifySkillSource helper for skill telemetry + source badge
+export function classifySkillSource(location: string): "builtin" | "global" | "project" {
+  // Normalize separators so `.altimate/builtin` / homedir prefix match on Windows too.
+  const normalized = location.replace(/\\/g, "/")
+  // Embedded skills load with a `builtin:<name>/SKILL.md` location and Altimate's
+  // bundled skills land under `~/.altimate/builtin/` — both are Altimate-shipped.
+  // The node_modules match is scoped to Altimate-owned packages (`@altimateai/*` and
+  // the `altimate-code` package) so a third-party skill installed under some other
+  // `node_modules/<pkg>` isn't tagged as Altimate.
+  if (
+    normalized.startsWith("builtin:") ||
+    /\/node_modules\/(@altimateai\/|altimate-code\/)/.test(normalized) ||
+    normalized.includes(".altimate/builtin")
+  )
+    return "builtin"
+  if (normalized.startsWith(os.homedir().replace(/\\/g, "/"))) return "global"
   return "project"
 }
 // altimate_change end
@@ -147,6 +159,10 @@ export const SkillTool = Tool.define("skill", async (ctx) => {
       const followups = SkillFollowups.format(skill.name)
       // altimate_change end
 
+      // altimate_change start — classify origin once, reused for telemetry and the source badge
+      const skillOrigin = classifySkillSource(skill.location)
+      // altimate_change end
+
       // altimate_change start — telemetry instrumentation for skill loading with trigger classification
       try {
         Telemetry.track({
@@ -155,7 +171,7 @@ export const SkillTool = Tool.define("skill", async (ctx) => {
           session_id: ctx.sessionID,
           message_id: ctx.messageID,
           skill_name: skill.name,
-          skill_source: classifySkillSource(skill.location),
+          skill_source: skillOrigin,
           duration_ms: Date.now() - startTime,
           trigger: Telemetry.classifySkillTrigger(ctx.extra),
           has_followups: followups.length > 0,
@@ -188,6 +204,8 @@ export const SkillTool = Tool.define("skill", async (ctx) => {
         metadata: {
           name: skill.name,
           dir,
+          // altimate_change — origin drives the source badge (see altimate/tool-source.ts skillToolSource)
+          skillOrigin,
         },
       }
       // altimate_change end
diff --git a/packages/opencode/src/tool/tool.ts b/packages/opencode/src/tool/tool.ts
index 001ae084a..e6bd4c56b 100644
--- a/packages/opencode/src/tool/tool.ts
+++ b/packages/opencode/src/tool/tool.ts
@@ -17,6 +17,9 @@ import {
   type LegacyInitFn,
 } from "../altimate/tool-zod-compat"
 // altimate_change end
+// altimate_change start — humanize tool-call titles at the source
+import { describeToolCall } from "../altimate/tool-label"
+// altimate_change end
 
 interface Metadata {
   [key: string]: any
@@ -92,6 +95,11 @@ export interface Info<
   M extends Metadata = Metadata,
 > {
   id: string
+  // altimate_change start — declared origin so the tool-source badge classifier doesn't have to
+  // infer ownership from the id. Only external (user custom / third-party plugin) tools set it;
+  // native + Altimate tools omit it and rely on the id fallback. See altimate/tool-source.
+  registrySource?: import("../altimate/tool-source").RegistryToolOrigin
+  // altimate_change end
   // altimate_change start — upstream_fix: restore caller context for deferred tool init.
   init: (ctx?: InitContext) => Effect.Effect<DefWithoutID<Parameters, M>>
   // altimate_change end
@@ -276,11 +284,14 @@ function wrap<Parameters extends Schema.Decoder<unknown>, Result extends Metadat
           )
           // altimate_change start — telemetry instrumentation for tool execution
           const startTime = Date.now()
-          const result = yield* execute(decoded as Schema.Schema.Type<Parameters>, ctx).pipe(
+          const rawResult = yield* execute(decoded as Schema.Schema.Type<Parameters>, ctx).pipe(
             Effect.onError((cause) =>
               Effect.sync(() => altimateTrackError(id, decoded, ctx, startTime, Cause.squash(cause))),
             ),
           )
+          // humanize the tool-call title at the source so any client (chat webview,
+          // TUI, ...) can render a readable label from state.title.
+          const result = { ...rawResult, title: describeToolCall(id, decoded, rawResult.title) ?? rawResult.title }
           altimateTrackSuccess(id, decoded, ctx, startTime, result)
           // altimate_change end
           if (result.metadata.truncated !== undefined) {
diff --git a/packages/opencode/test/altimate/tool-label.test.ts b/packages/opencode/test/altimate/tool-label.test.ts
new file mode 100644
index 000000000..6774e5bc0
--- /dev/null
+++ b/packages/opencode/test/altimate/tool-label.test.ts
@@ -0,0 +1,73 @@
+import { describe, test, expect } from "bun:test"
+import { describeToolCall } from "../../src/altimate/tool-label"
+
+describe("describeToolCall", () => {
+  test("humanizes reads of a dbt model into 'Reading <name> model'", () => {
+    expect(describeToolCall("read", { filePath: "models/customers.sql" }, "models/customers.sql")).toBe(
+      "Reading customers model",
+    )
+    expect(
+      describeToolCall("read", { filePath: "models/staging/stg_customers.sql" }, "models/staging/stg_customers.sql"),
+    ).toBe("Reading stg_customers model")
+  })
+
+  test("maps other dbt directories to their noun", () => {
+    expect(describeToolCall("edit", { filePath: "macros/cents_to_dollars.sql" }, "macros/cents_to_dollars.sql")).toBe(
+      "Editing cents_to_dollars macro",
+    )
+    expect(describeToolCall("write", { filePath: "analyses/rollup.sql" }, "analyses/rollup.sql")).toBe(
+      "Writing rollup analysis",
+    )
+    expect(describeToolCall("read", { filePath: "seeds/raw_customers.csv" }, "seeds/raw_customers.csv")).toBe(
+      "Reading raw_customers seed",
+    )
+  })
+
+  test("falls back to the filename for non-dbt paths (never a false 'model')", () => {
+    expect(describeToolCall("read", { filePath: "dbt_project.yml" }, "dbt_project.yml")).toBe("Reading dbt_project.yml")
+    expect(describeToolCall("read", { filePath: "src/index.ts" }, "src/index.ts")).toBe("Reading index.ts")
+  })
+
+  test("labels glob / grep / list by their target", () => {
+    expect(describeToolCall("glob", { pattern: "**/*.sql" }, "12 matches")).toBe("Searching **/*.sql")
+    expect(describeToolCall("grep", { pattern: "customer_id" }, "3 matches")).toBe("Searching customer_id")
+    expect(describeToolCall("list", { path: "models" }, "models/")).toBe("Listing models")
+  })
+
+  test("list on a nested dbt subdirectory keeps the dir name (not a false '<x> model')", () => {
+    // A directory listing under models/ is a folder of many models, not one model.
+    expect(describeToolCall("list", { path: "models/staging" }, "models/staging/")).toBe("Listing staging")
+  })
+
+  test("matches the nearest dbt ancestor, not a coincidental outer directory", () => {
+    // `models` appears higher in the path but the file lives under `macros`.
+    expect(
+      describeToolCall("read", { filePath: "models/project/macros/util.sql" }, "models/project/macros/util.sql"),
+    ).toBe("Reading util macro")
+  })
+
+  test("humanizes python and markdown dbt files", () => {
+    expect(describeToolCall("read", { filePath: "models/py_model.py" }, "models/py_model.py")).toBe(
+      "Reading py_model model",
+    )
+    expect(describeToolCall("read", { filePath: "models/customers.md" }, "models/customers.md")).toBe(
+      "Reading customers model",
+    )
+  })
+
+  test("keeps the tool's own title for non-file / rich-title tools", () => {
+    expect(
+      describeToolCall("sql_analyze", { filePath: "models/customers.sql" }, "Analyze: 2 issues [high]"),
+    ).toBe("Analyze: 2 issues [high]")
+    expect(describeToolCall("bash", { command: "dbt build" }, "Run full dbt build")).toBe("Run full dbt build")
+    // apply_patch carries a diff, not a path, so it keeps its own per-file title.
+    expect(describeToolCall("apply_patch", { patch: "*** Update File: models/x.sql" }, "# Patched x.sql")).toBe(
+      "# Patched x.sql",
+    )
+  })
+
+  test("falls back to the raw title when a file tool has no usable path", () => {
+    expect(describeToolCall("read", {}, "some title")).toBe("some title")
+    expect(describeToolCall("read", undefined, "some title")).toBe("some title")
+  })
+})
diff --git a/packages/opencode/test/altimate/tool-source.test.ts b/packages/opencode/test/altimate/tool-source.test.ts
new file mode 100644
index 000000000..a6a16ef5f
--- /dev/null
+++ b/packages/opencode/test/altimate/tool-source.test.ts
@@ -0,0 +1,136 @@
+import { describe, test, expect } from "bun:test"
+import {
+  registryToolSource,
+  mcpToolSource,
+  humanizeMcpTitle,
+  skillToolSource,
+  stampRegistryToolSource,
+  describeMcpTool,
+} from "../../src/altimate/tool-source"
+
+describe("registryToolSource", () => {
+  test("native opencode tools → builtin (id fallback)", () => {
+    for (const id of ["read", "write", "edit", "glob", "grep", "list", "bash", "task", "skill", "apply_patch"]) {
+      expect(registryToolSource(id)).toBe("builtin")
+    }
+  })
+
+  test("non-native registry tool with no declared origin → altimate (id fallback)", () => {
+    for (const id of ["sql_analyze", "schema_inspect", "finops_query_history", "altimate_core_check", "data_diff"]) {
+      expect(registryToolSource(id)).toBe("altimate")
+    }
+  })
+
+  test("declared origin wins over the id fallback", () => {
+    expect(registryToolSource("some_new_altimate_tool", "altimate")).toBe("altimate")
+    expect(registryToolSource("read", "native")).toBe("builtin")
+  })
+
+  test("external (user custom / third-party plugin) tools → builtin, never altimate", () => {
+    // Regression: a custom/plugin tool id looks non-native, so the id fallback would call it
+    // "altimate". The declared "external" origin keeps it neutral.
+    expect(registryToolSource("my_custom_tool", "external")).toBe("builtin")
+    expect(registryToolSource("acme_plugin_deploy", "external")).toBe("builtin")
+  })
+})
+
+describe("skillToolSource", () => {
+  test("Altimate-shipped (builtin origin) skills → altimate", () => {
+    expect(skillToolSource("builtin")).toBe("altimate")
+  })
+
+  test("user-authored global/project skills → builtin (neutral)", () => {
+    expect(skillToolSource("global")).toBe("builtin")
+    expect(skillToolSource("project")).toBe("builtin")
+  })
+
+  test("missing or unexpected origin → builtin (neutral, never over-claims)", () => {
+    expect(skillToolSource(undefined)).toBe("builtin")
+    expect(skillToolSource(null)).toBe("builtin")
+    expect(skillToolSource("")).toBe("builtin")
+    expect(skillToolSource(42)).toBe("builtin")
+  })
+})
+
+describe("mcpToolSource", () => {
+  test("Datamates MCP client → altimate", () => {
+    expect(mcpToolSource("datamates")).toBe("altimate")
+    expect(mcpToolSource("datamate")).toBe("altimate")
+    expect(mcpToolSource("Datamates")).toBe("altimate")
+  })
+
+  test("a datamate-prefixed client variant is Altimate", () => {
+    expect(mcpToolSource("datamate-prod")).toBe("altimate")
+  })
+
+  test("third-party MCP clients → mcp", () => {
+    expect(mcpToolSource("github")).toBe("mcp")
+    expect(mcpToolSource("linear")).toBe("mcp")
+  })
+
+  test("a third-party client that merely starts with 'datamate' is NOT Altimate", () => {
+    expect(mcpToolSource("datamatex")).toBe("mcp")
+    expect(mcpToolSource("datamateworks")).toBe("mcp")
+  })
+
+  test("regression: a third-party client that sanitizes into a datamate_ key is NOT Altimate", () => {
+    // Client `datamate.ai` sanitizes to `datamate_ai`, producing key `datamate_ai_query` whose
+    // first segment is `datamate`. Classifying from the real client name avoids the false positive.
+    expect(mcpToolSource("datamate.ai")).toBe("mcp")
+  })
+})
+
+describe("humanizeMcpTitle", () => {
+  test("strips the client segment (via first '_') and Title-Cases the rest", () => {
+    expect(humanizeMcpTitle("datamates_jira_get_issue")).toBe("Jira Get Issue")
+    expect(humanizeMcpTitle("github_search_issues")).toBe("Search Issues")
+  })
+
+  test("strips the client segment by exact sanitized length when the client name is known", () => {
+    // Client `datamate.ai` → sanitized prefix `datamate_ai_`. Without the known client name a
+    // first-'_' split would wrongly yield "Ai Query".
+    expect(humanizeMcpTitle("datamate_ai_query", "datamate.ai")).toBe("Query")
+    expect(humanizeMcpTitle("github_search_issues", "github")).toBe("Search Issues")
+  })
+
+  test("falls back gracefully for single-segment keys", () => {
+    expect(humanizeMcpTitle("ping")).toBe("Ping")
+  })
+})
+
+describe("stampRegistryToolSource", () => {
+  test("stamps altimate for a non-native tool with no declared origin", () => {
+    const out = stampRegistryToolSource({ metadata: { foo: 1 } }, { id: "sql_analyze" })
+    expect(out.metadata.source).toBe("altimate")
+    expect(out.metadata.foo).toBe(1) // preserves existing metadata
+  })
+
+  test("stamps builtin (neutral) for an external tool", () => {
+    const out = stampRegistryToolSource({ metadata: {} }, { id: "my_custom_tool", registrySource: "external" })
+    expect(out.metadata.source).toBe("builtin")
+  })
+
+  test("classifies the skill tool from its loaded skill origin", () => {
+    expect(stampRegistryToolSource({ metadata: { skillOrigin: "builtin" } }, { id: "skill" }).metadata.source).toBe(
+      "altimate",
+    )
+    expect(stampRegistryToolSource({ metadata: { skillOrigin: "project" } }, { id: "skill" }).metadata.source).toBe(
+      "builtin",
+    )
+  })
+
+  test("tolerates missing metadata", () => {
+    const out = stampRegistryToolSource({}, { id: "read" })
+    expect(out.metadata.source).toBe("builtin")
+  })
+})
+
+describe("describeMcpTool", () => {
+  test("returns source + humanized title from the original client name", () => {
+    expect(describeMcpTool("datamates_jira_get_issue", "datamates")).toEqual({
+      source: "altimate",
+      title: "Jira Get Issue",
+    })
+    expect(describeMcpTool("datamate_ai_query", "datamate.ai")).toEqual({ source: "mcp", title: "Query" })
+  })
+})
diff --git a/packages/opencode/test/tool/registry.test.ts b/packages/opencode/test/tool/registry.test.ts
index 7aa424291..ec6dcfa60 100644
--- a/packages/opencode/test/tool/registry.test.ts
+++ b/packages/opencode/test/tool/registry.test.ts
@@ -6,6 +6,7 @@ import { Effect, Layer, Result, Schema } from "effect"
 import { LayerNode } from "@opencode-ai/core/effect/layer-node"
 import { ToolRegistry } from "@/tool/registry"
 import { Tool } from "@/tool/tool"
+import { registryToolSource, stampRegistryToolSource } from "@/altimate/tool-source"
 import { disposeAllInstances, TestInstance } from "../fixture/fixture"
 import { testEffect } from "../lib/effect"
 import { TestConfig } from "../fixture/config"
@@ -142,6 +143,56 @@ describe("tool.registry", () => {
     }),
   )
 
+  // altimate_change — end-to-end: a resolved tool's `registrySource` drives the source badge.
+  // A file-scanned custom tool must classify neutral ("builtin"), never "altimate" — the id-based
+  // fallback alone would wrongly call any non-native id "altimate" (reviewer finding on #980).
+  it.instance("resolved custom tools carry registrySource=external and classify neutral", () =>
+    Effect.gen(function* () {
+      const test = yield* TestInstance
+      const tool = path.join(test.directory, ".opencode", "tool")
+      yield* Effect.promise(() => fs.mkdir(tool, { recursive: true }))
+      yield* Effect.promise(() =>
+        Bun.write(
+          path.join(tool, "deploy.ts"),
+          [
+            "export default {",
+            "  description: 'a user custom tool',",
+            "  args: {},",
+            "  execute: async () => 'ok',",
+            "}",
+            "",
+          ].join("\n"),
+        ),
+      )
+
+      const registry = yield* ToolRegistry.Service
+      const agent = yield* Agent.Service
+      const resolved = yield* registry.tools({
+        providerID: ProviderID.opencode,
+        modelID: ModelID.make("test"),
+        agent: yield* agent.defaultInfo(),
+      })
+
+      const custom = resolved.find((t) => t.id === "deploy")
+      expect(custom?.registrySource).toBe("external")
+      expect(registryToolSource(custom!.id, custom!.registrySource)).toBe("builtin")
+
+      // A native tool declares no origin and classifies builtin via the id fallback.
+      const read = resolved.find((t) => t.id === "read")
+      expect(read?.registrySource).toBeUndefined()
+      expect(registryToolSource(read!.id, read!.registrySource)).toBe("builtin")
+
+      // An Altimate tool declares no origin and classifies altimate via the id fallback.
+      const altimate = resolved.find((t) => t.id === "sql_analyze")
+      expect(altimate?.registrySource).toBeUndefined()
+      expect(registryToolSource(altimate!.id, altimate!.registrySource)).toBe("altimate")
+
+      // The shared stamping helper matches, end-to-end.
+      expect(stampRegistryToolSource({ metadata: {} }, custom!).metadata.source).toBe("builtin")
+      expect(stampRegistryToolSource({ metadata: {} }, altimate!).metadata.source).toBe("altimate")
+    }),
+  )
+
   it.instance("ignores non-tool exports in .opencode/tool files", () =>
     Effect.gen(function* () {
       const test = yield* TestInstance
diff --git a/packages/opencode/test/tool/skill-source.test.ts b/packages/opencode/test/tool/skill-source.test.ts
new file mode 100644
index 000000000..3ede7dcf7
--- /dev/null
+++ b/packages/opencode/test/tool/skill-source.test.ts
@@ -0,0 +1,46 @@
+import { describe, test, expect } from "bun:test"
+import path from "path"
+import os from "os"
+import { classifySkillSource } from "../../src/tool/skill"
+import { skillToolSource } from "../../src/altimate/tool-source"
+
+// The end-to-end "load a skill through the tool and read metadata.skillOrigin"
+// path is exercised by the serve E2E. These unit tests pin the pure decision
+// logic that drives the source badge: classifySkillSource (location → origin)
+// and skillToolSource (origin → badge).
+
+describe("classifySkillSource", () => {
+  test("Altimate-shipped locations → builtin", () => {
+    expect(classifySkillSource("builtin:data-viz/SKILL.md")).toBe("builtin")
+    expect(classifySkillSource("/home/x/.altimate/builtin/dbt-analyze/SKILL.md")).toBe("builtin")
+    expect(classifySkillSource("/app/node_modules/@altimateai/pkg/skills/x/SKILL.md")).toBe("builtin")
+    // Windows-style separators must still match the Altimate-builtin marker.
+    expect(classifySkillSource("C:\\Users\\x\\.altimate\\builtin\\dbt-analyze\\SKILL.md")).toBe("builtin")
+  })
+
+  test("a third-party skill under some other node_modules is NOT tagged Altimate", () => {
+    expect(classifySkillSource("/work/repo/node_modules/some-other-pkg/skills/x/SKILL.md")).toBe("project")
+  })
+
+  test("skills under the user's home (but not Altimate builtin) → global", () => {
+    expect(classifySkillSource(path.join(os.homedir(), ".claude", "skills", "mine", "SKILL.md"))).toBe("global")
+  })
+
+  test("skills elsewhere (project checkout) → project", () => {
+    expect(classifySkillSource("/work/repo/.claude/skills/local/SKILL.md")).toBe("project")
+  })
+})
+
+describe("skill origin → source badge (skillToolSource ∘ classifySkillSource)", () => {
+  test("an Altimate-shipped skill wears the Altimate mark", () => {
+    expect(skillToolSource(classifySkillSource("/home/x/.altimate/builtin/pii-audit/SKILL.md"))).toBe("altimate")
+    expect(skillToolSource(classifySkillSource("builtin:data-viz/SKILL.md"))).toBe("altimate")
+  })
+
+  test("a project / user-authored skill stays neutral", () => {
+    expect(skillToolSource(classifySkillSource("/work/repo/.claude/skills/jaffle-glossary/SKILL.md"))).toBe("builtin")
+    expect(skillToolSource(classifySkillSource(path.join(os.homedir(), ".claude", "skills", "mine", "SKILL.md")))).toBe(
+      "builtin",
+    )
+  })
+})
diff --git a/packages/opencode/test/tool/write.test.ts b/packages/opencode/test/tool/write.test.ts
index 48da3aae0..47f5741d0 100644
--- a/packages/opencode/test/tool/write.test.ts
+++ b/packages/opencode/test/tool/write.test.ts
@@ -306,14 +306,16 @@ describe("tool.write", () => {
   })
 
   describe("title generation", () => {
-    it.instance("returns relative path as title", () =>
+    it.instance("humanizes the title to a readable label", () =>
       Effect.gen(function* () {
         const test = yield* TestInstance
         const filepath = path.join(test.directory, "src", "components", "Button.tsx")
         yield* Effect.promise(() => fs.mkdir(path.dirname(filepath), { recursive: true }))
 
         const result = yield* run({ filePath: filepath, content: "export const Button = () => {}" })
-        expect(result.title).toEndWith(path.join("src", "components", "Button.tsx"))
+        // The execute() wrapper humanizes file-tool titles at the source
+        // (see src/altimate/tool-label.ts); a non-dbt path degrades to the filename.
+        expect(result.title).toBe("Writing Button.tsx")
       }),
     )
   })