diff --git a/crates/cli/src/config.rs b/crates/cli/src/config.rs
index 2307065fc..996563655 100644
--- a/crates/cli/src/config.rs
+++ b/crates/cli/src/config.rs
@@ -195,9 +195,6 @@ pub(crate) struct ServerArgs {
     /// Upstream Anthropic base URL (e.g. https://api.anthropic.com)
     #[arg(long, env = "NEMO_RELAY_ANTHROPIC_BASE_URL")]
     pub(crate) anthropic_base_url: Option<String>,
-    /// Generic plugin configuration JSON for process-level gateway plugin activation.
-    #[arg(long, env = "NEMO_RELAY_PLUGIN_CONFIG")]
-    pub(crate) plugin_config: Option<String>,
 }
 
 impl ServerArgs {
@@ -210,7 +207,6 @@ impl ServerArgs {
         self.bind.is_some()
             || self.openai_base_url.is_some()
             || self.anthropic_base_url.is_some()
-            || self.plugin_config.is_some()
             || self.config.is_some()
     }
 }
@@ -267,8 +263,6 @@ pub(crate) struct RunCommand {
     #[arg(long)]
     pub(crate) session_metadata: Option<String>,
     #[arg(long)]
-    pub(crate) plugin_config: Option<String>,
-    #[arg(long)]
     pub(crate) dry_run: bool,
     #[arg(long)]
     pub(crate) print: bool,
@@ -440,8 +434,8 @@ pub(crate) fn resolve_server_config(args: &ServerArgs) -> Result<ResolvedConfig,
 /// Resolves transparent `run` configuration and switches the gateway to an ephemeral bind address.
 ///
 /// Explicit run arguments override inherited top-level server flags, which override shared config.
-/// Session metadata and plugin config are parsed as JSON here so malformed CLI values fail before
-/// the child agent is spawned.
+/// Session metadata is parsed as JSON here so malformed CLI values fail before the child agent is
+/// spawned.
 pub(crate) fn resolve_run_config(
     command: &RunCommand,
     inherited: Option<&ServerArgs>,
@@ -452,16 +446,7 @@ pub(crate) fn resolve_run_config(
         .or_else(|| inherited.and_then(|args| args.config.as_ref()));
     let mut resolved = load_shared_config(config)?;
     if let Some(args) = inherited {
-        // Run-subcommand plugin config has higher precedence than inherited top-level plugin
-        // config. Skip only that inherited field so file/plugins.toml conflicts are still caught
-        // when the run-level override is applied below.
-        if command.plugin_config.is_some() && args.plugin_config.is_some() {
-            let mut inherited = args.clone();
-            inherited.plugin_config = None;
-            apply_server_overrides(&mut resolved.gateway, &inherited)?;
-        } else {
-            apply_server_overrides(&mut resolved.gateway, args)?;
-        }
+        apply_server_overrides(&mut resolved.gateway, args)?;
     }
     apply_run_overrides(&mut resolved.gateway, command)?;
     resolved.gateway.bind = "127.0.0.1:0"
@@ -471,7 +456,7 @@ pub(crate) fn resolve_run_config(
 }
 
 // Applies subcommand-specific `run` overrides after inherited top-level flags. JSON-bearing fields
-// are parsed here so invalid metadata or plugin config fails before the gateway binds a port.
+// are parsed here so invalid session metadata fails before the gateway binds a port.
 fn apply_run_overrides(config: &mut GatewayConfig, command: &RunCommand) -> Result<(), CliError> {
     apply_run_url_overrides(config, command);
     apply_run_json_overrides(config, command)?;
@@ -489,8 +474,8 @@ fn apply_run_url_overrides(config: &mut GatewayConfig, command: &RunCommand) {
     }
 }
 
-// Parses JSON-bearing run overrides after simple values. Invalid metadata or plugin config fails
-// before transparent run mode binds its ephemeral gateway listener.
+// Parses JSON-bearing run overrides after simple values. Invalid session metadata fails before
+// transparent run mode binds its ephemeral gateway listener.
 fn apply_run_json_overrides(
     config: &mut GatewayConfig,
     command: &RunCommand,
@@ -498,9 +483,6 @@ fn apply_run_json_overrides(
     if let Some(value) = &command.session_metadata {
         config.metadata = Some(parse_json_option("session metadata", value)?);
     }
-    if let Some(value) = &command.plugin_config {
-        apply_cli_plugin_config(config, value)?;
-    }
     Ok(())
 }
 
@@ -516,9 +498,6 @@ fn apply_server_overrides(config: &mut GatewayConfig, args: &ServerArgs) -> Resu
     if let Some(value) = &args.anthropic_base_url {
         config.anthropic_base_url = value.clone();
     }
-    if let Some(value) = &args.plugin_config {
-        apply_cli_plugin_config(config, value)?;
-    }
     Ok(())
 }
 
@@ -790,16 +769,6 @@ fn apply_plugin_toml_config(
     Ok(())
 }
 
-fn apply_cli_plugin_config(config: &mut GatewayConfig, value: &str) -> Result<(), CliError> {
-    if config.plugin_config.is_some() {
-        return Err(CliError::Config(
-            "plugin config is defined by both --plugin-config and file configuration; choose one source".into(),
-        ));
-    }
-    config.plugin_config = Some(parse_json_option("plugin config", value)?);
-    Ok(())
-}
-
 // Applies configured agent commands and Cursor's temporary-hook behavior. Cursor's
 // `patch_restore_hooks` flag is intentionally tri-state in file config so omitted values preserve
 // the safe default while explicit `false` disables temporary hook mutation.
diff --git a/crates/cli/src/launcher.rs b/crates/cli/src/launcher.rs
index b9b3048ce..efbc5fdc3 100644
--- a/crates/cli/src/launcher.rs
+++ b/crates/cli/src/launcher.rs
@@ -73,7 +73,6 @@ pub(crate) async fn easy_path(
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: command.command,
diff --git a/crates/cli/tests/coverage/config_tests.rs b/crates/cli/tests/coverage/config_tests.rs
index d7426da41..e79536288 100644
--- a/crates/cli/tests/coverage/config_tests.rs
+++ b/crates/cli/tests/coverage/config_tests.rs
@@ -124,7 +124,6 @@ command = "hermes --yolo chat"
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec![],
@@ -179,7 +178,6 @@ fn legacy_observability_config_sections_fail_clearly() {
             openai_base_url: None,
             anthropic_base_url: None,
             session_metadata: None,
-            plugin_config: None,
             dry_run: false,
             print: false,
             command: vec![],
@@ -232,7 +230,6 @@ mode = "overwrite"
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec!["codex".into()],
@@ -521,30 +518,6 @@ config = { version = 1, components = [] }
     assert!(error.contains("plugins.toml"));
 }
 
-#[test]
-fn cli_plugin_config_conflicts_with_file_plugin_config() {
-    let temp = tempfile::tempdir().unwrap();
-    let config_path = temp.path().join("config.toml");
-    std::fs::write(&config_path, "").unwrap();
-    std::fs::write(temp.path().join("plugins.toml"), "version = 1\n").unwrap();
-    let command = RunCommand {
-        agent: Some(CodingAgent::Codex),
-        config: Some(config_path),
-        openai_base_url: None,
-        anthropic_base_url: None,
-        session_metadata: None,
-        plugin_config: Some(r#"{"version":1,"components":[]}"#.into()),
-        dry_run: false,
-        print: false,
-        command: vec!["codex".into()],
-    };
-
-    let error = resolve_run_config(&command, None).unwrap_err().to_string();
-
-    assert!(error.contains("--plugin-config"));
-    assert!(error.contains("file configuration"));
-}
-
 #[test]
 fn cli_run_overrides_config_values() {
     let temp = tempfile::tempdir().unwrap();
@@ -563,7 +536,6 @@ openai_base_url = "http://file-openai"
         openai_base_url: Some("http://cli-openai".into()),
         anthropic_base_url: None,
         session_metadata: Some(r#"{"team":"cli"}"#.into()),
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec!["codex".into()],
@@ -598,7 +570,6 @@ openai_base_url = "http://file-openai"
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec!["codex".into()],
@@ -609,34 +580,6 @@ openai_base_url = "http://file-openai"
     assert_eq!(resolved.gateway.openai_base_url, "http://top-level-openai");
 }
 
-#[test]
-fn run_plugin_config_overrides_inherited_top_level_plugin_config() {
-    let temp = tempfile::tempdir().unwrap();
-    let server = ServerArgs {
-        config: Some(isolated_config_path(&temp)),
-        plugin_config: Some(r#"{"components":["top-level"]}"#.into()),
-        ..ServerArgs::default()
-    };
-    let command = RunCommand {
-        agent: Some(CodingAgent::Codex),
-        config: None,
-        openai_base_url: None,
-        anthropic_base_url: None,
-        session_metadata: None,
-        plugin_config: Some(r#"{"components":["run"]}"#.into()),
-        dry_run: false,
-        print: false,
-        command: vec!["codex".into()],
-    };
-
-    let resolved = resolve_run_config(&command, Some(&server)).unwrap();
-
-    assert_eq!(
-        resolved.gateway.plugin_config,
-        Some(json!({ "components": ["run"] }))
-    );
-}
-
 #[test]
 fn server_resolution_applies_all_server_overrides() {
     let temp = tempfile::tempdir().unwrap();
@@ -645,7 +588,6 @@ fn server_resolution_applies_all_server_overrides() {
         bind: Some("127.0.0.1:0".parse().unwrap()),
         openai_base_url: Some("http://cli-openai".into()),
         anthropic_base_url: Some("http://cli-anthropic".into()),
-        plugin_config: Some(r#"{"version":1,"components":[]}"#.into()),
     };
 
     let resolved = resolve_server_config(&args).unwrap();
@@ -653,10 +595,6 @@ fn server_resolution_applies_all_server_overrides() {
     assert_eq!(resolved.gateway.bind.to_string(), "127.0.0.1:0");
     assert_eq!(resolved.gateway.openai_base_url, "http://cli-openai");
     assert_eq!(resolved.gateway.anthropic_base_url, "http://cli-anthropic");
-    assert_eq!(
-        resolved.gateway.plugin_config,
-        Some(json!({ "version": 1, "components": [] }))
-    );
     assert!(args.requested_daemon_mode());
 }
 
@@ -669,7 +607,6 @@ fn run_resolution_applies_all_run_overrides() {
         openai_base_url: Some("http://run-openai".into()),
         anthropic_base_url: Some("http://run-anthropic".into()),
         session_metadata: Some(r#"{"team":"run"}"#.into()),
-        plugin_config: Some(r#"{"components":["x"]}"#.into()),
         dry_run: false,
         print: false,
         command: vec!["codex".into()],
@@ -680,10 +617,6 @@ fn run_resolution_applies_all_run_overrides() {
     assert_eq!(resolved.gateway.openai_base_url, "http://run-openai");
     assert_eq!(resolved.gateway.anthropic_base_url, "http://run-anthropic");
     assert_eq!(resolved.gateway.metadata, Some(json!({ "team": "run" })));
-    assert_eq!(
-        resolved.gateway.plugin_config,
-        Some(json!({ "components": ["x"] }))
-    );
 }
 
 #[test]
diff --git a/crates/cli/tests/coverage/launcher_tests.rs b/crates/cli/tests/coverage/launcher_tests.rs
index c079e2277..6011dbd53 100644
--- a/crates/cli/tests/coverage/launcher_tests.rs
+++ b/crates/cli/tests/coverage/launcher_tests.rs
@@ -18,7 +18,6 @@ fn infers_agent_from_command_or_uses_override() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec!["/usr/bin/codex".into()],
@@ -51,7 +50,6 @@ fn uses_configured_command_when_no_argv_is_supplied() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec![],
@@ -78,7 +76,6 @@ fn uses_configured_hermes_command_when_no_argv_is_supplied() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec![],
@@ -98,7 +95,6 @@ fn inference_failure_has_actionable_message() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec!["my-agent".into()],
@@ -123,7 +119,6 @@ fn missing_command_without_agent_errors() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec![],
@@ -146,7 +141,6 @@ fn agent_without_configured_command_falls_back_to_default_binary() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec![],
@@ -167,7 +161,6 @@ fn agent_with_passthrough_args_appends_to_configured_command() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: vec!["--model".into(), "openai/openai/gpt-5.1-codex".into()],
@@ -644,7 +637,6 @@ async fn run_starts_gateway_injects_env_and_returns_agent_exit_code() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: false,
         print: false,
         command: command_argv,
@@ -685,7 +677,6 @@ async fn dry_run_does_not_spawn_agent() {
         openai_base_url: None,
         anthropic_base_url: None,
         session_metadata: None,
-        plugin_config: None,
         dry_run: true,
         print: false,
         command: vec!["/path/that/does/not/exist".into()],
diff --git a/docs/build-plugins/plugin-configuration-files.mdx b/docs/build-plugins/plugin-configuration-files.mdx
index 866d80d92..30e236bfe 100644
--- a/docs/build-plugins/plugin-configuration-files.mdx
+++ b/docs/build-plugins/plugin-configuration-files.mdx
@@ -70,16 +70,14 @@ The gateway reads only files named `plugins.toml`.
 
 ## Discovery
 
-The gateway can receive plugin configuration from three source classes:
+The gateway can receive plugin configuration from two source classes:
 
 | Source | Use case |
 |---|---|
 | `plugins.toml` | Normal operator- and project-managed gateway plugin configuration. |
 | `[plugins].config` in `config.toml` | Inline gateway config for small or generated setups. |
-| `--plugin-config '<json>'` | CI, tests, wrappers, or one-off automation. |
 
 Use only one source class for a given gateway run. The gateway fails clearly if
-file-based plugin config and `--plugin-config` are both present, or if
 `plugins.toml` and `[plugins].config` are both present.
 
 When `--config path/to/config.toml` is supplied, plugin file discovery is scoped
@@ -253,8 +251,7 @@ installed by the plugin system.
 
 Keep long-lived plugin setup in `plugins.toml`. Use `[plugins].config` in
 `config.toml` only when a generated or embedded config must keep all gateway
-settings in one file. Use `--plugin-config` for automation that should not write
-files.
+settings in one file.
 
 Legacy observability config sections in `config.toml`, such as `[exporters]`,
 `[observability]`, and `[export.openinference]`, are not supported. Configure