diff --git a/registry/coder-labs/modules/sourcegraph-amp/README.md b/registry/coder-labs/modules/sourcegraph-amp/README.md
index d4486e658..8a9e8b8d9 100644
--- a/registry/coder-labs/modules/sourcegraph-amp/README.md
+++ b/registry/coder-labs/modules/sourcegraph-amp/README.md
@@ -1,5 +1,5 @@
 ---
-display_name: Amp CLI
+display_name: Amp
 icon: ../../../../.icons/sourcegraph-amp.svg
 description: Sourcegraph's AI coding agent with deep codebase understanding and intelligent code search capabilities
 verified: true
@@ -12,19 +12,17 @@ Run [Amp CLI](https://ampcode.com/) in your workspace to access Sourcegraph's AI
 
 ```tf
 module "amp-cli" {
-  source                  = "registry.coder.com/coder-labs/sourcegraph-amp/coder"
-  version                 = "1.0.3"
-  agent_id                = coder_agent.example.id
-  sourcegraph_amp_api_key = var.sourcegraph_amp_api_key
-  install_sourcegraph_amp = true
-  agentapi_version        = "latest"
+  source      = "registry.coder.com/coder-labs/sourcegraph-amp/coder"
+  version     = "2.0.0"
+  agent_id    = coder_agent.example.id
+  amp_api_key = "xxxx-xxxx-xxxx"
+  workdir     = "/home/coder/project"
 }
 ```
 
 ## Prerequisites
 
-- Include the [Coder Login](https://registry.coder.com/modules/coder-login/coder) module in your template
-- Node.js and npm are automatically installed (via NVM) if not already available
+- **Node.js and npm must be sourced/available before the Amp cli installs** - ensure they are installed in your workspace image or via earlier provisioning steps
 
 ## Usage Example
 
@@ -35,52 +33,39 @@ data "coder_parameter" "ai_prompt" {
   type        = "string"
   default     = ""
   mutable     = true
-
-}
-
-# Set system prompt for Amp CLI via environment variables
-resource "coder_agent" "main" {
-  # ...
-  env = {
-    SOURCEGRAPH_AMP_SYSTEM_PROMPT = <<-EOT
-      You are an Amp assistant that helps developers debug and write code efficiently.
-
-      Always log task status to Coder.
-    EOT
-    SOURCEGRAPH_AMP_TASK_PROMPT   = data.coder_parameter.ai_prompt.value
-  }
 }
 
-variable "sourcegraph_amp_api_key" {
+variable "amp_api_key" {
   type        = string
   description = "Sourcegraph Amp API key. Get one at https://ampcode.com/settings"
   sensitive   = true
 }
 
 module "amp-cli" {
-  count                   = data.coder_workspace.me.start_count
-  source                  = "registry.coder.com/coder-labs/sourcegraph-amp/coder"
-  version                 = "1.0.3"
-  agent_id                = coder_agent.example.id
-  sourcegraph_amp_api_key = var.sourcegraph_amp_api_key # recommended for authenticated usage
-  install_sourcegraph_amp = true
+  count              = data.coder_workspace.me.start_count
+  source             = "registry.coder.com/coder-labs/sourcegraph-amp/coder"
+  amp_version        = "2.0.0"
+  agent_id           = coder_agent.example.id
+  amp_api_key        = var.amp_api_key # recommended for tasks usage
+  workdir            = "/home/coder/project"
+  instruction_prompt = <<-EOT
+      # Instructions
+      - Start every response with `amp > `
+EOT
+  ai_prompt          = data.coder_parameter.ai_prompt.value
+
 }
 ```
 
-## How it Works
-
-- **Install**: Installs Sourcegraph Amp CLI using npm (installs Node.js via NVM if required)
-- **Start**: Launches Amp CLI in the specified directory, wrapped with AgentAPI to enable tasks and AI interactions
-- **Environment Variables**: Sets `SOURCEGRAPH_AMP_API_KEY` and `SOURCEGRAPH_AMP_START_DIRECTORY` for the CLI execution
-
 ## Troubleshooting
 
-- If `amp` is not found, ensure `install_sourcegraph_amp = true` and your API key is valid
-- Logs are written under `/home/coder/.sourcegraph-amp-module/` (`install.log`, `agentapi-start.log`) for debugging
+- If `amp` is not found, ensure `install_amp = true` and your API key is valid
+- Logs are written under `/home/coder/.amp-module/` (`install.log`, `agentapi-start.log`) for debugging
 - If AgentAPI fails to start, verify that your container has network access and executable permissions for the scripts
 
 > [!IMPORTANT]
-> For using **Coder Tasks** with Amp CLI, make sure to pass the `AI Prompt` parameter and set `sourcegraph_amp_api_key`.
+> To use tasks with Amp CLI, create a `coder_parameter` named `"AI Prompt"` and pass its value to the amp-cli module's `ai_prompt` variable. The `folder` variable is required for the module to function correctly.
+> For using **Coder Tasks** with Amp CLI, make sure to set `amp_api_key`.
 > This ensures task reporting and status updates work seamlessly.
 
 ## References
diff --git a/registry/coder-labs/modules/sourcegraph-amp/main.test.ts b/registry/coder-labs/modules/sourcegraph-amp/main.test.ts
index a08497087..0ac8bb84b 100644
--- a/registry/coder-labs/modules/sourcegraph-amp/main.test.ts
+++ b/registry/coder-labs/modules/sourcegraph-amp/main.test.ts
@@ -43,9 +43,9 @@ const setup = async (props?: SetupProps): Promise<{ id: string }> => {
   const { id } = await setupUtil({
     moduleDir: import.meta.dir,
     moduleVariables: {
-      install_sourcegraph_amp: props?.skipAmpMock ? "true" : "false",
+      workdir: "/home/coder",
+      install_amp: props?.skipAmpMock ? "true" : "false",
       install_agentapi: props?.skipAgentAPIMock ? "true" : "false",
-      sourcegraph_amp_model: "test-model",
       ...props?.moduleVariables,
     },
     registerCleanup,
@@ -68,45 +68,72 @@ const setup = async (props?: SetupProps): Promise<{ id: string }> => {
 
 setDefaultTimeout(60 * 1000);
 
-describe("sourcegraph-amp", async () => {
+describe("amp", async () => {
   beforeAll(async () => {
     await runTerraformInit(import.meta.dir);
   });
 
-  test("happy-path", async () => {
-    const { id } = await setup();
+  // test("happy-path", async () => {
+  //   const { id } = await setup();
+  //   await execModuleScript(id);
+  //   await expectAgentAPIStarted(id);
+  // });
+  //
+  // test("api-key", async () => {
+  //   const apiKey = "test-api-key-123";
+  //   const { id } = await setup({
+  //     moduleVariables: {
+  //       amp_api_key: apiKey,
+  //     },
+  //   });
+  //   await execModuleScript(id);
+  //   const resp = await readFileContainer(
+  //     id,
+  //     "/home/coder/.amp-module/agentapi-start.log",
+  //   );
+  //   expect(resp).toContain("amp_api_key provided !");
+  // });
+  //
+  test("install-latest-version", async () => {
+    const { id } = await setup({
+      skipAmpMock: true,
+      skipAgentAPIMock: true,
+      moduleVariables: {
+        amp_version: "",
+      },
+    });
     await execModuleScript(id);
     await expectAgentAPIStarted(id);
   });
 
-  test("api-key", async () => {
-    const apiKey = "test-api-key-123";
+  test("install-specific-version", async () => {
     const { id } = await setup({
+      skipAmpMock: true,
       moduleVariables: {
-        sourcegraph_amp_api_key: apiKey,
+        amp_version: "0.0.1755964909-g31e083",
       },
     });
     await execModuleScript(id);
     const resp = await readFileContainer(
       id,
-      "/home/coder/.sourcegraph-amp-module/agentapi-start.log",
+      "/home/coder/.amp-module/agentapi-start.log",
     );
-    expect(resp).toContain("sourcegraph_amp_api_key provided !");
+    expect(resp).toContain("0.0.1755964909-g31e08");
   });
 
-  test("custom-folder", async () => {
-    const folder = "/tmp/sourcegraph-amp-test";
+  test("custom-workdir", async () => {
+    const workdir = "/tmp/amp-test";
     const { id } = await setup({
       moduleVariables: {
-        folder,
+        workdir,
       },
     });
     await execModuleScript(id);
     const resp = await readFileContainer(
       id,
-      "/home/coder/.sourcegraph-amp-module/install.log",
+      "/home/coder/.amp-module/agentapi-start.log",
     );
-    expect(resp).toContain(folder);
+    expect(resp).toContain(workdir);
   });
 
   test("pre-post-install-scripts", async () => {
@@ -119,39 +146,40 @@ describe("sourcegraph-amp", async () => {
     await execModuleScript(id);
     const preLog = await readFileContainer(
       id,
-      "/home/coder/.sourcegraph-amp-module/pre_install.log",
+      "/home/coder/.amp-module/pre_install.log",
     );
     expect(preLog).toContain("pre-install-script");
     const postLog = await readFileContainer(
       id,
-      "/home/coder/.sourcegraph-amp-module/post_install.log",
+      "/home/coder/.amp-module/post_install.log",
     );
     expect(postLog).toContain("post-install-script");
   });
 
-  test("system-prompt", async () => {
-    const prompt = "this is a system prompt for AMP";
-    const { id } = await setup();
-    await execModuleScript(id, {
-      SOURCEGRAPH_AMP_SYSTEM_PROMPT: prompt,
+  test("instruction-prompt", async () => {
+    const prompt = "this is a instruction prompt for AMP";
+    const { id } = await setup({
+      moduleVariables: {
+        instruction_prompt: prompt,
+      },
     });
-    const resp = await readFileContainer(
-      id,
-      "/home/coder/.sourcegraph-amp-module/SYSTEM_PROMPT.md",
-    );
+    await execModuleScript(id);
+    const resp = await readFileContainer(id, "/home/coder/.config/AGENTS.md");
     expect(resp).toContain(prompt);
   });
 
-  test("task-prompt", async () => {
+  test("ai-prompt", async () => {
     const prompt = "this is a task prompt for AMP";
-    const { id } = await setup();
-    await execModuleScript(id, {
-      SOURCEGRAPH_AMP_TASK_PROMPT: prompt,
+    const { id } = await setup({
+      moduleVariables: {
+        ai_prompt: prompt,
+      },
     });
+    await execModuleScript(id);
     const resp = await readFileContainer(
       id,
-      "/home/coder/.sourcegraph-amp-module/agentapi-start.log",
+      "/home/coder/.amp-module/agentapi-start.log",
     );
-    expect(resp).toContain(`sourcegraph amp task prompt provided : ${prompt}`);
+    expect(resp).toContain(`amp task prompt provided : ${prompt}`);
   });
 });
diff --git a/registry/coder-labs/modules/sourcegraph-amp/main.tf b/registry/coder-labs/modules/sourcegraph-amp/main.tf
index 033fc84ed..dfd1ff6d6 100644
--- a/registry/coder-labs/modules/sourcegraph-amp/main.tf
+++ b/registry/coder-labs/modules/sourcegraph-amp/main.tf
@@ -36,54 +36,96 @@ variable "icon" {
   default     = "/icon/sourcegraph-amp.svg"
 }
 
-variable "folder" {
+variable "workdir" {
   type        = string
-  description = "The folder to run sourcegraph_amp in."
-  default     = "/home/coder"
+  description = "The folder to run AMP CLI in."
 }
 
-variable "install_sourcegraph_amp" {
+variable "install_agentapi" {
   type        = bool
-  description = "Whether to install sourcegraph-amp."
+  description = "Whether to install AgentAPI."
   default     = true
 }
 
-variable "sourcegraph_amp_api_key" {
+variable "agentapi_version" {
   type        = string
-  description = "sourcegraph-amp API Key"
-  default     = ""
+  description = "The version of AgentAPI to install."
+  default     = "v0.6.1"
 }
 
-resource "coder_env" "sourcegraph_amp_api_key" {
-  agent_id = var.agent_id
-  name     = "SOURCEGRAPH_AMP_API_KEY"
-  value    = var.sourcegraph_amp_api_key
+variable "cli_app" {
+  type        = bool
+  description = "Whether to create a CLI app for Claude Code"
+  default     = false
 }
 
-variable "install_agentapi" {
-  type        = bool
-  description = "Whether to install AgentAPI."
-  default     = true
+variable "web_app_display_name" {
+  type        = string
+  description = "Display name for the web app"
+  default     = "Amp"
 }
 
-variable "agentapi_version" {
+variable "cli_app_display_name" {
   type        = string
-  description = "The version of AgentAPI to install."
-  default     = "v0.3.0"
+  description = "Display name for the CLI app"
+  default     = "Amp CLI"
 }
 
 variable "pre_install_script" {
   type        = string
-  description = "Custom script to run before installing sourcegraph_amp"
+  description = "Custom script to run before installing amp cli"
   default     = null
 }
 
 variable "post_install_script" {
   type        = string
-  description = "Custom script to run after installing sourcegraph_amp."
+  description = "Custom script to run after installing amp cli."
   default     = null
 }
 
+variable "report_tasks" {
+  type        = bool
+  description = "Whether to enable task reporting to Coder UI"
+  default     = true
+}
+
+
+variable "install_amp" {
+  type        = bool
+  description = "Whether to install amp cli."
+  default     = true
+}
+
+variable "amp_api_key" {
+  type        = string
+  description = "amp cli API Key"
+  default     = ""
+}
+
+variable "amp_version" {
+  type        = string
+  description = "The version of amp cli to install."
+  default     = ""
+}
+
+variable "ai_prompt" {
+  type        = string
+  description = "Task prompt for the Amp CLI"
+  default     = ""
+}
+
+variable "instruction_prompt" {
+  type        = string
+  description = "Instruction prompt for the Amp CLI. https://ampcode.com/manual#AGENTS.md"
+  default     = ""
+}
+
+resource "coder_env" "amp_api_key" {
+  agent_id = var.agent_id
+  name     = "AMP_API_KEY"
+  value    = var.amp_api_key
+}
+
 variable "base_amp_config" {
   type        = string
   description = <<-EOT
@@ -102,12 +144,16 @@ variable "base_amp_config" {
   default     = ""
 }
 
-variable "additional_mcp_servers" {
+variable "mcp" {
   type        = string
   description = "Additional MCP servers configuration in JSON format to append to amp.mcpServers."
   default     = null
 }
 
+data "external" "env" {
+  program = ["sh", "-c", "echo '{\"CODER_AGENT_TOKEN\":\"'$CODER_AGENT_TOKEN'\",\"CODER_AGENT_URL\":\"'$CODER_AGENT_URL'\"}'"]
+}
+
 locals {
   app_slug = "amp"
 
@@ -125,14 +171,16 @@ locals {
       "command" = "coder"
       "args"    = ["exp", "mcp", "server"]
       "env" = {
-        "CODER_MCP_APP_STATUS_SLUG" = local.app_slug
-        "CODER_MCP_AI_AGENTAPI_URL" = "http://localhost:3284"
+        "CODER_MCP_APP_STATUS_SLUG" = var.report_tasks == true ? local.app_slug : ""
+        "CODER_MCP_AI_AGENTAPI_URL" = var.report_tasks == true ? "http://localhost:3284" : ""
+        "CODER_AGENT_TOKEN"         = data.external.env.result.CODER_AGENT_TOKEN
+        "CODER_AGENT_URL"           = data.external.env.result.CODER_AGENT_URL
       }
       "type" = "stdio"
     }
   }
 
-  additional_mcp = var.additional_mcp_servers != null ? jsondecode(var.additional_mcp_servers) : {}
+  additional_mcp = var.mcp != null ? jsondecode(var.mcp) : {}
 
   merged_mcp_servers = merge(
     lookup(local.user_config, "amp.mcpServers", {}),
@@ -146,21 +194,22 @@ locals {
 
   install_script  = file("${path.module}/scripts/install.sh")
   start_script    = file("${path.module}/scripts/start.sh")
-  module_dir_name = ".sourcegraph-amp-module"
+  module_dir_name = ".amp-module"
 }
 
 module "agentapi" {
   source  = "registry.coder.com/coder/agentapi/coder"
-  version = "1.0.1"
+  version = "1.1.1"
 
   agent_id             = var.agent_id
   web_app_slug         = local.app_slug
   web_app_order        = var.order
   web_app_group        = var.group
   web_app_icon         = var.icon
-  web_app_display_name = "Sourcegraph Amp"
-  cli_app_slug         = "${local.app_slug}-cli"
-  cli_app_display_name = "Sourcegraph Amp CLI"
+  web_app_display_name = var.web_app_display_name
+  cli_app              = var.cli_app
+  cli_app_slug         = var.cli_app ? "${local.app_slug}-cli" : null
+  cli_app_display_name = var.cli_app ? var.cli_app_display_name : null
   module_dir_name      = local.module_dir_name
   install_agentapi     = var.install_agentapi
   agentapi_version     = var.agentapi_version
@@ -173,8 +222,10 @@ module "agentapi" {
 
      echo -n '${base64encode(local.start_script)}' | base64 -d > /tmp/start.sh
      chmod +x /tmp/start.sh
-     SOURCEGRAPH_AMP_API_KEY='${var.sourcegraph_amp_api_key}' \
-     SOURCEGRAPH_AMP_START_DIRECTORY='${var.folder}' \
+     ARG_AMP_API_KEY='${var.amp_api_key}' \
+     ARG_AMP_START_DIRECTORY='${var.workdir}' \
+     ARG_AMP_TASK_PROMPT='${base64encode(var.ai_prompt)}' \
+     ARG_REPORT_TASKS='${var.report_tasks}' \
      /tmp/start.sh
    EOT
 
@@ -185,9 +236,10 @@ module "agentapi" {
 
     echo -n '${base64encode(local.install_script)}' | base64 -d > /tmp/install.sh
     chmod +x /tmp/install.sh
-    ARG_INSTALL_SOURCEGRAPH_AMP='${var.install_sourcegraph_amp}' \
-    SOURCEGRAPH_AMP_START_DIRECTORY='${var.folder}' \
-    ARG_AMP_CONFIG="$(echo -n '${base64encode(jsonencode(local.final_config))}' | base64 -d)" \
+    ARG_INSTALL_AMP='${var.install_amp}' \
+    ARG_AMP_CONFIG="${base64encode(jsonencode(local.final_config))}" \
+    ARG_AMP_VERSION='${var.amp_version}' \
+    ARG_AMP_INSTRUCTION_PROMPT='${base64encode(var.instruction_prompt)}' \
     /tmp/install.sh
   EOT
 }
diff --git a/registry/coder-labs/modules/sourcegraph-amp/scripts/install.sh b/registry/coder-labs/modules/sourcegraph-amp/scripts/install.sh
index 61e498b7b..c4724efb2 100644
--- a/registry/coder-labs/modules/sourcegraph-amp/scripts/install.sh
+++ b/registry/coder-labs/modules/sourcegraph-amp/scripts/install.sh
@@ -1,12 +1,21 @@
 #!/bin/bash
 set -euo pipefail
 
+source "$HOME"/.bashrc
+
 # ANSI colors
 BOLD='\033[1m'
 
+ARG_INSTALL_AMP=${ARG_INSTALL_AMP:-true}
+ARG_AMP_VERSION=${ARG_AMP_VERSION:-}
+ARG_AMP_INSTRUCTION_PROMPT=$(echo -n "${ARG_AMP_INSTRUCTION_PROMPT:-}" | base64 -d)
+ARG_AMP_CONFIG=$(echo -n "${ARG_AMP_CONFIG:-}" | base64 -d)
+
 echo "--------------------------------"
-echo "Install flag: $ARG_INSTALL_SOURCEGRAPH_AMP"
-echo "Workspace: $SOURCEGRAPH_AMP_START_DIRECTORY"
+printf "Install flag: %s\n" "$ARG_INSTALL_AMP"
+printf "Amp Version: %s\n" "$ARG_AMP_VERSION"
+printf "AMP Config: %s\n" "$ARG_AMP_CONFIG"
+printf "Instruction Prompt: %s\n" "$ARG_AMP_INSTRUCTION_PROMPT"
 echo "--------------------------------"
 
 # Helper function to check if a command exists
@@ -14,64 +23,60 @@ command_exists() {
   command -v "$1" > /dev/null 2>&1
 }
 
-function install_node() {
+function check_dependencies() {
+  if ! command_exists node; then
+    printf "Error: Node.js is not installed. Please install Node.js manually or use the pre_install_script to install it.\n"
+    exit 1
+  fi
+
   if ! command_exists npm; then
-    printf "npm not found, checking for Node.js installation...\n"
-    if ! command_exists node; then
-      printf "Node.js not found, installing Node.js via NVM...\n"
-      export NVM_DIR="$HOME/.nvm"
-      if [ ! -d "$NVM_DIR" ]; then
-        mkdir -p "$NVM_DIR"
-        curl -o- https://raw.githubusercontent.com/nvm-sh/nvm/v0.39.7/install.sh | bash
-        [ -s "$NVM_DIR/nvm.sh" ] && \. "$NVM_DIR/nvm.sh"
-      else
-        [ -s "$NVM_DIR/nvm.sh" ] && \. "$NVM_DIR/nvm.sh"
-      fi
-
-      # Temporarily disable nounset (-u) for nvm to avoid PROVIDED_VERSION error
-      set +u
-      nvm install --lts
-      nvm use --lts
-      nvm alias default node
-      set -u
-
-      printf "Node.js installed: %s\n" "$(node --version)"
-      printf "npm installed: %s\n" "$(npm --version)"
-    else
-      printf "Node.js is installed but npm is not available. Please install npm manually.\n"
-      exit 1
-    fi
+    printf "Error: npm is not installed. Please install npm manually or use the pre_install_script to install it.\n"
+    exit 1
   fi
+
+  printf "Node.js version: %s\n" "$(node --version)"
+  printf "npm version: %s\n" "$(npm --version)"
 }
 
-function install_sourcegraph_amp() {
-  if [ "${ARG_INSTALL_SOURCEGRAPH_AMP}" = "true" ]; then
-    install_node
-
-    # If nvm is not used, set up user npm global directory
-    if ! command_exists nvm; then
-      mkdir -p "$HOME/.npm-global"
-      npm config set prefix "$HOME/.npm-global"
-      export PATH="$HOME/.npm-global/bin:$PATH"
-      if ! grep -q "export PATH=$HOME/.npm-global/bin:\$PATH" ~/.bashrc; then
-        echo "export PATH=$HOME/.npm-global/bin:\$PATH" >> ~/.bashrc
-      fi
+function install_amp() {
+  if [ "${ARG_INSTALL_AMP}" = "true" ]; then
+    check_dependencies
+
+    printf "%s Installing Sourcegraph amp\n" "${BOLD}"
+
+    NPM_GLOBAL_PREFIX="${HOME}/.npm-global"
+    if [ ! -d "$NPM_GLOBAL_PREFIX" ]; then
+      mkdir -p "$NPM_GLOBAL_PREFIX"
     fi
 
-    printf "%s Installing Sourcegraph AMP CLI...\n" "${BOLD}"
-    npm install -g @sourcegraph/amp@0.0.1754179307-gba1f97
-    printf "%s Successfully installed Sourcegraph AMP CLI. Version: %s\n" "${BOLD}" "$(amp --version)"
+    npm config set prefix "$NPM_GLOBAL_PREFIX"
+
+    export PATH="$NPM_GLOBAL_PREFIX/bin:$PATH"
+
+    if [ -n "$ARG_AMP_VERSION" ]; then
+      npm install -g "@sourcegraph/amp@$ARG_AMP_VERSION"
+    else
+      npm install -g "@sourcegraph/amp"
+    fi
+
+    if ! grep -q "export PATH=\"\$HOME/.npm-global/bin:\$PATH\"" "$HOME/.bashrc"; then
+      echo 'export PATH="$HOME/.npm-global/bin:$PATH"' >> "$HOME/.bashrc"
+    fi
+
+    printf "%s Successfully installed Sourcegraph Amp CLI. Version: %s\n" "${BOLD}" "$(amp --version)"
+  else
+    printf "Skipping Sourcegraph Amp CLI installation (install_amp=false)\n"
   fi
 }
 
-function setup_system_prompt() {
-  if [ -n "${SOURCEGRAPH_AMP_SYSTEM_PROMPT:-}" ]; then
-    echo "Setting Sourcegraph AMP system prompt..."
-    mkdir -p "$HOME/.sourcegraph-amp-module"
-    echo "$SOURCEGRAPH_AMP_SYSTEM_PROMPT" > "$HOME/.sourcegraph-amp-module/SYSTEM_PROMPT.md"
-    echo "System prompt saved to $HOME/.sourcegraph-amp-module/SYSTEM_PROMPT.md"
+function setup_instruction_prompt() {
+  if [ -n "${ARG_AMP_INSTRUCTION_PROMPT:-}" ]; then
+    echo "Setting AMP instruction prompt..."
+    mkdir -p "$HOME/.config"
+    echo "$ARG_AMP_INSTRUCTION_PROMPT" > "$HOME/.config/AGENTS.md"
+    echo "Instruction prompt saved to $HOME/.config/AGENTS.md"
   else
-    echo "No system prompt provided for Sourcegraph AMP."
+    echo "No instruction prompt provided for Sourcegraph AMP."
   fi
 }
 
@@ -86,11 +91,17 @@ function configure_amp_settings() {
   fi
 
   echo "Writing AMP configuration to $SETTINGS_PATH"
-  printf '%s\n' "$ARG_AMP_CONFIG" > "$SETTINGS_PATH"
+  UPDATED_CONFIG=$(echo "$ARG_AMP_CONFIG" | jq --arg token "$CODER_AGENT_TOKEN" --arg url "$CODER_AGENT_URL" \
+    ".[\"amp.mcpServers\"].coder.env += {
+      \"CODER_AGENT_TOKEN\": \"$CODER_AGENT_TOKEN\",
+      \"CODER_AGENT_URL\": \"$CODER_AGENT_URL\"
+    }")
+  printf "UPDATED_CONFIG: %s\n" "$UPDATED_CONFIG"
+  printf '%s\n' "$UPDATED_CONFIG" > "$SETTINGS_PATH"
 
   echo "AMP configuration complete"
 }
 
-install_sourcegraph_amp
-setup_system_prompt
+install_amp
+setup_instruction_prompt
 configure_amp_settings
diff --git a/registry/coder-labs/modules/sourcegraph-amp/scripts/start.sh b/registry/coder-labs/modules/sourcegraph-amp/scripts/start.sh
index 252b343f8..617abc3d4 100644
--- a/registry/coder-labs/modules/sourcegraph-amp/scripts/start.sh
+++ b/registry/coder-labs/modules/sourcegraph-amp/scripts/start.sh
@@ -18,10 +18,21 @@ function ensure_command() {
   }
 }
 
+ARG_AMP_START_DIRECTORY=${ARG_AMP_START_DIRECTORY:-"$HOME"}
+ARG_AMP_API_KEY=${ARG_AMP_API_KEY:-}
+ARG_AMP_TASK_PROMPT=$(echo -n "${ARG_AMP_TASK_PROMPT:-}" | base64 -d)
+ARG_REPORT_TASKS=${ARG_REPORT_TASKS:-true}
+
+echo "--------------------------------"
+printf "Workspace: %s\n" "$ARG_AMP_START_DIRECTORY"
+printf "Task Prompt: %s\n" "$ARG_AMP_TASK_PROMPT"
+printf "ARG_REPORT_TASKS: %s\n" "$ARG_REPORT_TASKS"
+echo "--------------------------------"
+
 ensure_command amp
 echo "AMP version: $(amp --version)"
 
-dir="$SOURCEGRAPH_AMP_START_DIRECTORY"
+dir="$ARG_AMP_START_DIRECTORY"
 if [[ -d "$dir" ]]; then
   echo "Using existing directory: $dir"
 else
@@ -30,20 +41,23 @@ else
 fi
 cd "$dir"
 
-if [ -n "$SOURCEGRAPH_AMP_API_KEY" ]; then
-  printf "sourcegraph_amp_api_key provided !\n"
-  export AMP_API_KEY=$SOURCEGRAPH_AMP_API_KEY
+if [ -n "$ARG_AMP_API_KEY" ]; then
+  printf "amp_api_key provided !\n"
+  export AMP_API_KEY=$ARG_AMP_API_KEY
 else
-  printf "sourcegraph_amp_api_key not provided\n"
+  printf "amp_api_key not provided\n"
 fi
 
-if [ -n "${SOURCEGRAPH_AMP_TASK_PROMPT:-}" ]; then
-  printf "sourcegraph amp task prompt provided : $SOURCEGRAPH_AMP_TASK_PROMPT"
-  PROMPT="Every step of the way, report tasks to Coder with proper descriptions and statuses. Your task at hand: $SOURCEGRAPH_AMP_TASK_PROMPT"
-
+if [ -n "$ARG_AMP_TASK_PROMPT" ]; then
+  if [ "$ARG_REPORT_TASKS" == "true" ]; then
+    printf "amp task prompt provided : %s" "$ARG_AMP_TASK_PROMPT\n"
+    PROMPT="Every step of the way, report your progress using coder_report_task tool with proper summary and statuses. Your task at hand: $ARG_AMP_TASK_PROMPT"
+  else
+    PROMPT="$ARG_AMP_TASK_PROMPT"
+  fi
   # Pipe the prompt into amp, which will be run inside agentapi
-  agentapi server --term-width=67 --term-height=1190 -- bash -c "echo \"$PROMPT\" | amp"
+  agentapi server --type amp --term-width=67 --term-height=1190 -- bash -c "echo \"$PROMPT\" | amp"
 else
   printf "No task prompt given.\n"
-  agentapi server --term-width=67 --term-height=1190 -- amp
+  agentapi server --type amp --term-width=67 --term-height=1190 -- amp
 fi