diff --git a/README.md b/README.md
index b98457e..2c9a6d7 100644
--- a/README.md
+++ b/README.md
@@ -262,7 +262,7 @@ CodeGraph builds a semantic knowledge graph of codebases for faster, smarter cod
 > This project has CodeGraph initialized (.codegraph/ exists). Use `codegraph_explore` as your PRIMARY tool — it returns full source code sections from all relevant files in one call.
 >
 > **Rules:**
-> 1. Make at most 6 `codegraph_explore` calls — one broad query, then up to 5 focused follow-ups.
+> 1. Follow the explore call budget in the `codegraph_explore` tool description — it scales automatically based on project size.
 > 2. Do NOT re-read files that codegraph_explore already returned source code for. The source sections are complete and authoritative.
 > 3. Only fall back to grep/glob/read for files listed under "Additional relevant files" if you need more detail, or if codegraph returned no results.
 
diff --git a/src/installer/claude-md-template.ts b/src/installer/claude-md-template.ts
index 9c863a5..130d447 100644
--- a/src/installer/claude-md-template.ts
+++ b/src/installer/claude-md-template.ts
@@ -23,7 +23,7 @@ CodeGraph builds a semantic knowledge graph of codebases for faster, smarter cod
 > This project has CodeGraph initialized (.codegraph/ exists). Use \`codegraph_explore\` as your PRIMARY tool — it returns full source code sections from all relevant files in one call.
 >
 > **Rules:**
-> 1. Make at most 6 \`codegraph_explore\` calls — one broad query, then up to 5 focused follow-ups.
+> 1. Follow the explore call budget in the \`codegraph_explore\` tool description — it scales automatically based on project size.
 > 2. Do NOT re-read files that codegraph_explore already returned source code for. The source sections are complete and authoritative.
 > 3. Only fall back to grep/glob/read for files listed under "Additional relevant files" if you need more detail, or if codegraph returned no results.
 
diff --git a/src/mcp/index.ts b/src/mcp/index.ts
index ddcf828..b740964 100644
--- a/src/mcp/index.ts
+++ b/src/mcp/index.ts
@@ -255,8 +255,9 @@ export class MCPServer {
    * Handle tools/list request
    */
   private async handleToolsList(request: JsonRpcRequest): Promise<void> {
+    this.retryInitIfNeeded();
     this.transport.sendResult(request.id, {
-      tools: tools,
+      tools: this.toolHandler.getTools(),
     });
   }
 
diff --git a/src/mcp/tools.ts b/src/mcp/tools.ts
index aebfe97..585479f 100644
--- a/src/mcp/tools.ts
+++ b/src/mcp/tools.ts
@@ -15,6 +15,19 @@ import { join } from 'path';
 /** Maximum output length to prevent context bloat (characters) */
 const MAX_OUTPUT_LENGTH = 15000;
 
+/**
+ * Calculate the recommended number of codegraph_explore calls based on project size.
+ * Larger codebases need more exploration calls to cover their surface area,
+ * but smaller ones should use fewer to avoid unnecessary overhead.
+ */
+export function getExploreBudget(fileCount: number): number {
+  if (fileCount < 1000) return 2;
+  if (fileCount < 5000) return 3;
+  if (fileCount < 15000) return 4;
+  if (fileCount < 25000) return 5;
+  return 6;
+}
+
 /**
  * Mark a Claude session as having consulted MCP tools.
  * This enables Grep/Glob/Bash commands that would otherwise be blocked.
@@ -298,6 +311,32 @@ export class ToolHandler {
     return this.cg !== null;
   }
 
+  /**
+   * Get tool definitions with dynamic descriptions based on project size.
+   * The codegraph_explore tool description includes a budget recommendation
+   * scaled to the number of indexed files.
+   */
+  getTools(): ToolDefinition[] {
+    if (!this.cg) return tools;
+
+    try {
+      const stats = this.cg.getStats();
+      const budget = getExploreBudget(stats.fileCount);
+
+      return tools.map(tool => {
+        if (tool.name === 'codegraph_explore') {
+          return {
+            ...tool,
+            description: `${tool.description} Budget: make at most ${budget} calls for this project (${stats.fileCount.toLocaleString()} files indexed).`,
+          };
+        }
+        return tool;
+      });
+    } catch {
+      return tools;
+    }
+  }
+
   /**
    * Get CodeGraph instance for a project
    *
@@ -854,6 +893,16 @@ export class ToolHandler {
     lines.push('---');
     lines.push(`> **Complete source code is included above for ${filesIncluded} files.** You do NOT need to re-read these files — the relevant sections are already shown in full. Only use Read/Grep for files listed under "Additional relevant files" if you need more detail.`);
 
+    // Add explore budget note based on project size
+    try {
+      const stats = cg.getStats();
+      const budget = getExploreBudget(stats.fileCount);
+      lines.push('');
+      lines.push(`> **Explore budget: ${budget} calls max for this project (${stats.fileCount.toLocaleString()} files indexed).** Stop exploring and synthesize your answer once you've used ${budget} calls — do NOT make additional explore calls beyond this budget.`);
+    } catch {
+      // Stats unavailable — skip budget note
+    }
+
     return this.textResult(lines.join('\n'));
   }