diff --git a/packages/provider-pi/src/server/status.test.ts b/packages/provider-pi/src/server/status.test.ts
index 37fa28c00e42a..3c562b461579d 100644
--- a/packages/provider-pi/src/server/status.test.ts
+++ b/packages/provider-pi/src/server/status.test.ts
@@ -19,6 +19,13 @@ const decodeRpcRequest = Schema.decodeSync(
   Schema.fromJsonString(Schema.Struct({ id: Schema.String, type: Schema.String })),
 );
 const encodeJsonLine = Schema.encodeSync(Schema.fromJsonString(Schema.Unknown));
+const STARTUP_DIALOG = `${encodeJsonLine({
+  type: "extension_ui_request",
+  id: "ui-1",
+  method: "select",
+  title: "Allow project MCP server “github”?",
+  options: ["Don't allow", "Allow"],
+})}\n`;
 
 function processHandle(input: {
   readonly stdout?: string;
@@ -118,6 +125,10 @@ const piDiscoverySpawner = (
     readonly version?: string;
     readonly state?: unknown;
     readonly authCheck?: string | undefined;
+    /** Without `--no-approve`, print a project-trust dialog and exit 0 as Pi 1.x does. */
+    readonly startupDialog?: boolean;
+    /** What `--no-approve` lists once project-local extensions are skipped. */
+    readonly declinedProjectInventory?: unknown;
   } = {},
 ) =>
   Effect.succeed(
@@ -132,13 +143,24 @@ const piDiscoverySpawner = (
           ? Effect.die(`Unexpected pi ${args.join(" ")}`)
           : Effect.succeed(processHandle({ stdout: options.authCheck, exitCode: 1 }));
       }
+      if (
+        options.startupDialog === true &&
+        !args.includes("--no-extensions") &&
+        !args.includes("--no-approve")
+      ) {
+        return Effect.succeed(processHandle({ stdout: STARTUP_DIALOG }));
+      }
       if (args.includes("--no-extensions") && extensionFreeInventory === exitsWithoutExtensions) {
         return Effect.succeed(
           processHandle({ stderr: 'Error: Unknown provider "demo".', exitCode: 1 }),
         );
       }
       return piRpcProcess(
-        args.includes("--no-extensions") ? extensionFreeInventory : inventory,
+        args.includes("--no-extensions")
+          ? extensionFreeInventory
+          : args.includes("--no-approve") && options.declinedProjectInventory !== undefined
+            ? options.declinedProjectInventory
+            : inventory,
         args.includes("--no-extensions") ? onExtensionFreeModelRequest : Effect.void,
         options.state,
       );
@@ -423,6 +445,43 @@ describe("PiProvider", () => {
     }).pipe(Effect.provide(NodeServices.layer)),
   );
 
+  it.effect.each([
+    { launchArgs: "", startupDialog: true, models: ["default", "anthropic/claude-opus"] },
+    { launchArgs: "--approve", startupDialog: true, models: ["default"] },
+    {
+      launchArgs: "",
+      startupDialog: false,
+      models: ["default", "anthropic/claude-opus", "project/local-model"],
+    },
+  ])(
+    "keeps project trust unless a startup dialog blocks discovery (dialog: $startupDialog, launch args '$launchArgs')",
+    (row) =>
+      Effect.gen(function* () {
+        const spawner = yield* piDiscoverySpawner(
+          {
+            models: [
+              { provider: "anthropic", id: "claude-opus" },
+              { provider: "project", id: "local-model" },
+            ],
+          },
+          undefined,
+          undefined,
+          {
+            startupDialog: row.startupDialog,
+            declinedProjectInventory: { models: [{ provider: "anthropic", id: "claude-opus" }] },
+          },
+        );
+        const snapshot = yield* checkPiProviderStatus({
+          ...settings,
+          launchArgs: row.launchArgs,
+        }).pipe(Effect.provideService(ChildProcessSpawner.ChildProcessSpawner, spawner));
+        assert.deepEqual(
+          snapshot.models.map((model) => model.slug),
+          row.models,
+        );
+      }).pipe(Effect.provide(NodeServices.layer)),
+  );
+
   // regression: #18498 a malformed model inventory must not restore stale Pi models
   it.effect.each([
     ["missing models", {}],
diff --git a/packages/provider-pi/src/server/status.ts b/packages/provider-pi/src/server/status.ts
index 43fa8f60c08a5..86a8e63de753c 100644
--- a/packages/provider-pi/src/server/status.ts
+++ b/packages/provider-pi/src/server/status.ts
@@ -8,6 +8,7 @@ import type { PiSettings } from "../settings.ts";
 import { causeErrorTag } from "@t3tools/shared/observability";
 import { resolveSpawnCommand } from "@t3tools/shared/shell";
 import { compareSemverVersions } from "@t3tools/shared/semver";
+import * as Cause from "effect/Cause";
 import * as DateTime from "effect/DateTime";
 import * as Effect from "effect/Effect";
 import * as Stream from "effect/Stream";
@@ -167,6 +168,36 @@ const makePiDiscoveryConnection = Effect.fnUntraced(function* (
   return connection;
 });
 
+// A failed response echoes Pi's own `command` field as the operation, so log only names we sent.
+const PI_LOGGED_RPC_OPERATIONS = new Set([
+  "spawn",
+  "read",
+  "write",
+  "exit",
+  "terminate",
+  "get_state",
+  "get_available_models",
+  "get_commands",
+]);
+
+const PI_PROJECT_TRUST_ARGUMENTS = new Set(["--approve", "-a", "--no-approve", "-na"]);
+
+const readPiInventory = Effect.fn("PiProviderStatus.readPiInventory")(function* (
+  piSettings: PiSettings,
+  environment: NodeJS.ProcessEnv,
+  launchArgs: ReadonlyArray<string>,
+  timeoutMs: number,
+  cwd?: string,
+) {
+  const connection = yield* makePiDiscoveryConnection(piSettings, environment, launchArgs, cwd);
+  const stateData = yield* connection.request({ type: "get_state" }, timeoutMs);
+  const modelsData = yield* connection.request({ type: "get_available_models" }, timeoutMs);
+  const commandsData = yield* connection
+    .request({ type: "get_commands" }, timeoutMs)
+    .pipe(Effect.orElseSucceed(() => undefined));
+  return { stateData, modelsData, commandsData };
+}, Effect.scoped);
+
 // Text generation runs Pi with --no-extensions, so it cannot load models that an
 // extension or package registers. Listing models with that launch tells them apart.
 const discoverPiTextGenerationModelSlugs = Effect.fn(
@@ -217,12 +248,25 @@ const discoverPiViaRpc = Effect.fn("PiProviderStatus.discoverPiViaRpc")(function
     }),
     Effect.forkScoped,
   );
-  const connection = yield* makePiDiscoveryConnection(piSettings, environment, launchArgs, cwd);
-  const stateData = yield* connection.request({ type: "get_state" }, timeoutMs);
-  const modelsData = yield* connection.request({ type: "get_available_models" }, timeoutMs);
-  const commandsData = yield* connection
-    .request({ type: "get_commands" }, timeoutMs)
-    .pipe(Effect.orElseSucceed(() => undefined));
+  const { stateData, modelsData, commandsData } = yield* readPiInventory(
+    piSettings,
+    environment,
+    launchArgs,
+    timeoutMs,
+    cwd,
+  ).pipe(
+    // Pi's RPC mode reads stdin only after session_start, so a startup dialog (an MCP adapter asking
+    // to approve a project server) can never be answered and Pi exits. Retry declining project trust
+    // unless the user chose a trust mode, so trusted projects keep their project-local models.
+    Effect.catchIf(
+      (error) =>
+        error._tag === "PiRpcError" &&
+        (error.operation === "read" || error.operation === "exit") &&
+        !launchArgs.some((arg) => PI_PROJECT_TRUST_ARGUMENTS.has(arg)),
+      () =>
+        readPiInventory(piSettings, environment, [...launchArgs, "--no-approve"], timeoutMs, cwd),
+    ),
+  );
   const discoveredModels = yield* Effect.fromResult(parseDiscoveredModels(modelsData, stateData));
   const { slashCommands, skills } = parsePiDiscoveredCommands(commandsData);
   const textGenerationModelSlugs = yield* Fiber.join(textGenerationModelSlugsFiber);
@@ -532,8 +576,12 @@ export const checkPiProviderStatus = Effect.fn("checkPiProviderStatus")(function
     Effect.exit,
   );
   if (Exit.isFailure(discoveryExit)) {
+    const failure = Cause.findErrorOption(discoveryExit.cause);
     yield* Effect.logWarning("Pi RPC discovery failed.", {
       errorTag: causeErrorTag(discoveryExit.cause),
+      ...(Option.isSome(failure) && PI_LOGGED_RPC_OPERATIONS.has(failure.value.operation)
+        ? { operation: failure.value.operation }
+        : {}),
     });
     return buildServerProvider({
       presentation: PI_PRESENTATION,