diff --git a/skills/kugetsu/SKILL.md b/skills/kugetsu/SKILL.md
index 298c385..aa52482 100644
--- a/skills/kugetsu/SKILL.md
+++ b/skills/kugetsu/SKILL.md
@@ -364,10 +364,14 @@ kugetsu queue-daemon logs       # Show recent daemon logs
 
 **Daemon Behavior:**
 1. Runs at configurable interval (default: 5 minutes)
-2. Checks if active agents < MAX_CONCURRENT_AGENTS
-3. Picks 1-N pending items (configurable batch size)
-4. Forks PM session for each picked item
-5. PM decides whether to use `start` or `continue`
+2. Checks queue for pending items
+3. For each pending item:
+   - Acquires lock to prevent duplicate processing
+   - Sources kugetsu-session.sh and calls `cmd_continue`
+   - `cmd_continue` handles worktree/session creation and forks dev agent from base session
+   - Updates queue item state to "notified"
+4. Uses per-issue locking to prevent race conditions
+5. Implements timeout for tasks that don't complete (marks as "error" after TASK_TIMEOUT_HOURS)
 
 **Queue Directory:**
 ```
@@ -526,6 +530,13 @@ The script will:
 
 See [docs/kugetsu-setup.md](../../docs/kugetsu-setup.md) for full Tailscale setup documentation.
 
+## Version History
+
+### v0.2.3
+- **Queue daemon context drift fix** (issue #156): Daemon now sources kugetsu-session.sh and calls `cmd_continue` directly instead of forking PM session. This fixes context drift where daemon would lose track of task state.
+- **Daemon locking**: Added per-issue locking to prevent race conditions when multiple daemon instances run.
+- **Timeout handling**: Tasks that don't complete within TASK_TIMEOUT_HOURS are marked as "error".
+
 ## Without kugetsu
 
 If kugetsu is not available, use opencode directly: