diff --git a/packages/opencode/src/config/config.ts b/packages/opencode/src/config/config.ts
index b86631ad398..ca185964cf1 100644
--- a/packages/opencode/src/config/config.ts
+++ b/packages/opencode/src/config/config.ts
@@ -24,6 +24,7 @@ import {
 } from "jsonc-parser"
 // kilocode_change end
 import { Instance } from "../project/instance"
+import { State } from "../project/state" // kilocode_change
 import { LSPServer } from "../lsp/server"
 import { BunProc } from "@/bun"
 import { Installation } from "@/installation"
@@ -1553,11 +1554,12 @@ export namespace Config {
 
     global.reset()
 
-    // kilocode_change start - only reset config cache, don't dispose all instances.
-    // Instance.disposeAll() was destroying all session state, MCP connections, and
-    // in-flight operations across every project whenever any global config changed
-    // (e.g. removing a mode). The cache reset above is sufficient — consumers will
-    // pick up the new config on their next read.
+    // kilocode_change start - reset all derived caches (Config.state, Agent.state,
+    // Provider.state, etc.) so they re-read the updated global config on next access.
+    // Only cache entries without dispose callbacks are cleared — side-effectful state
+    // like sessions, MCP connections, and file watchers are preserved.
+    State.resetCaches()
+
     GlobalBus.emit("event", {
       directory: "global",
       payload: {
diff --git a/packages/opencode/src/project/state.ts b/packages/opencode/src/project/state.ts
index a9dce565b5e..dda791952a5 100644
--- a/packages/opencode/src/project/state.ts
+++ b/packages/opencode/src/project/state.ts
@@ -28,6 +28,21 @@ export namespace State {
     }
   }
 
+  /**
+   * Reset all cache-only entries (those without dispose callbacks) across all
+   * instances. This invalidates derived state like Config, Agent, Provider,
+   * etc. without tearing down side-effectful resources (MCP connections,
+   * sessions, file watchers, etc.).
+   */
+  export function resetCaches() {
+    for (const entries of recordsByKey.values()) {
+      for (const [init, entry] of entries) {
+        if (entry.dispose) continue
+        entries.delete(init)
+      }
+    }
+  }
+
   export async function dispose(key: string) {
     const entries = recordsByKey.get(key)
     if (!entries) return