diff --git a/.plans/cloud-agent-next-dind-small-sandbox-handoff.md b/.plans/cloud-agent-next-dind-small-sandbox-handoff.md
new file mode 100644
index 0000000000..8a823e62b8
--- /dev/null
+++ b/.plans/cloud-agent-next-dind-small-sandbox-handoff.md
@@ -0,0 +1,176 @@
+# Cloud Agent Next DIND Small Sandbox Handoff
+
+## PR
+
+- Draft PR: https://github.com/Kilo-Org/cloud/pull/2933
+- Branch: `chore/cloud-agent-small-dind-clean`
+- Commit: `1b4a56dc chore(cloud-agent-next): add DIND small sandbox`
+
+## Goal
+
+Make `SandboxSmall` use a Docker-in-Docker-capable Cloudflare Sandbox image so it can be used as the experimental runtime for devcontainer support.
+
+The current PR intentionally stops at the image/config layer. It does not yet run devcontainers from cloud-agent-next session code.
+
+## What Changed
+
+- Added `services/cloud-agent-next/Dockerfile.dind`.
+- Updated `services/cloud-agent-next/wrangler.jsonc` so `SandboxSmall` uses `./Dockerfile.dind` in both production and `env.dev` container config.
+- Updated the generated Wrangler type hash in `services/cloud-agent-next/worker-configuration.d.ts`.
+
+## Dockerfile Shape
+
+`Dockerfile.dind` follows Cloudflare's Docker-in-Docker guidance:
+
+- Starts from `docker:dind-rootless`.
+- Copies `/sandbox` and required musl runtime libraries from `docker.io/cloudflare/sandbox:0.8.9-musl`.
+- Runs the Cloudflare Sandbox binary as `ENTRYPOINT`.
+- Starts rootless `dockerd` as the Sandbox child `CMD` with `--iptables=false --ip6tables=false`.
+- Switches back to `USER rootless` for runtime.
+
+It also installs the cloud-agent tooling needed to keep the current `SandboxSmall` behavior mostly compatible:
+
+- `git`, `git-lfs`, `jq`, `curl`, `wget`, `openssh-client`
+- GitHub CLI `gh`
+- GitLab CLI `glab`
+- `nodejs`, `npm`, `bun`, `pnpm`
+- `@devcontainers/cli`
+- `@kilocode/cli@${KILOCODE_CLI_VERSION}`
+- Existing cloud-agent wrapper bundles at `/usr/local/bin/kilocode-wrapper.js` and `/usr/local/bin/kilo-restore-session.js`
+
+It additionally prepares a future inner-container Kilo bundle:
+
+- `/opt/kilo-agent/bin/kilo`
+- `/opt/kilo-agent/cli-linux-x64/bin/kilo`
+- `/opt/kilo-agent/cli-linux-x64-musl/bin/kilo`
+
+The launcher detects `x86_64` plus glibc/musl and execs the matching platform binary. This is for later mounting/copying into user devcontainers so `kilo serve` can run there without requiring Node/npm/Bun in the user image.
+
+## Important Context
+
+- This sandbox environment does not have Docker installed, so the DIND image has not been built or runtime-tested here.
+- Push was done with `--no-verify` at user request because the pre-push hook timed out in this sandbox.
+- `pnpm install --frozen-lockfile` was run to make local tooling available; it warned that this environment uses Node 20 while the repo wants Node 24.
+- Earlier brainstorming lives in `.plans/cloud-agent-next-devcontainer-support.md` on the session branch, but it is not included in the clean draft PR.
+
+## Verification Already Run
+
+On the clean branch:
+
+```bash
+pnpm --filter cloud-agent-next exec wrangler types --check
+pnpm --filter cloud-agent-next run typecheck
+pnpm --filter cloud-agent-next run format:check
+pnpm format
+```
+
+All passed, with the expected Node engine warning:
+
+```text
+Unsupported engine: wanted: {"node":">=24 <25"} (current: {"node":"v20.20.2","pnpm":"10.33.0"})
+```
+
+## Recommended Next Tests
+
+Run these locally or in an environment with Docker.
+
+### 1. Build the image
+
+From `services/cloud-agent-next`:
+
+```bash
+docker build -f Dockerfile.dind -t cloud-agent-next-dind-small .
+```
+
+Things to watch:
+
+- Whether `cloudflare/sandbox:0.8.9-musl` exists and has all copied paths.
+- Whether `npm install -g bun pnpm @devcontainers/cli @kilocode/cli@7.1.23` works on Alpine.
+- Whether `gh` and `glab` downloaded archives match expected directory layout.
+- Final image size; `/opt/kilo-agent` includes two large Kilo platform binaries.
+
+### 2. Smoke-test Docker inside the image
+
+Run the image in a local Docker environment that can support rootless DIND. The exact local flags may differ from Cloudflare Containers, so this is only a smoke test:
+
+```bash
+docker run --rm -it cloud-agent-next-dind-small sh
+```
+
+Inside the container:
+
+```bash
+docker version
+docker run --network=host --rm alpine:3.20 echo hello
+devcontainer --version
+kilo --version
+/opt/kilo-agent/bin/kilo --version
+```
+
+Cloudflare docs say inner Docker networking should use `--network=host` because iptables is disabled.
+
+### 3. Smoke-test through Cloudflare Sandbox
+
+Deploy or run a staging Worker using the PR branch and call `SandboxSmall` with a fixed test ID.
+
+Useful commands to run through `sandbox.exec(...)`:
+
+```bash
+docker version
+docker run --network=host --rm alpine:3.20 echo hello
+devcontainer --version
+/opt/kilo-agent/bin/kilo --version
+```
+
+If those pass, write a minimal repo with `.devcontainer/devcontainer.json` and run:
+
+```bash
+devcontainer up --workspace-folder /workspace/repo
+```
+
+### 4. Kilo-in-inner-container smoke test
+
+Before integrating wrapper changes, manually run Kilo in an inner container:
+
+```bash
+docker run \
+  --network=host \
+  --rm \
+  -v /workspace/repo:/workspaces/repo \
+  -v /opt/kilo-agent:/opt/kilo-agent:ro \
+  -e HOME=/tmp/kilo-home \
+  -e USER=agent \
+  -e KILO_SERVER_PASSWORD=secret \
+  -w /workspaces/repo \
+  alpine:3.20 \
+  /opt/kilo-agent/bin/kilo serve --hostname 127.0.0.1 --port 43210 --print-logs
+```
+
+From the outer sandbox:
+
+```bash
+curl -u kilo:secret http://127.0.0.1:43210/
+```
+
+Expected behavior:
+
+- Without auth: `401 Unauthorized`.
+- With `-u kilo:secret`: reaches Kilo server; `/` may return `404`, which is fine for connectivity.
+
+## Likely Follow-Up Code Work
+
+- Add a smoke-test endpoint or script for DIND validation if local testing is painful.
+- Add a `DevcontainerManager` module to discover `.devcontainer/devcontainer.json`, run `devcontainer up`, record container ID/remote workspace folder, and clean up inner Docker resources.
+- Split wrapper startup from Kilo server startup: wrapper should remain in the outer sandbox and connect to an externally managed `kilo serve` URL in devcontainer mode.
+- Start `kilo serve` inside the inner devcontainer with `KILO_SERVER_PASSWORD` and teach wrapper HTTP clients to use Basic auth.
+- Decide whether to mount `/opt/kilo-agent` into inner containers via devcontainer config overlay or copy it with `docker cp` after startup.
+- Decide where Kilo HOME lives inside the devcontainer and how auth/config/session restore are written there.
+- Add cleanup for inner Docker containers/images/volumes, all labeled by agent session ID.
+
+## Known Open Questions
+
+- Should `SandboxSmall` use DIND in production immediately, or should this be limited to `env.dev`/staging until the image is proven?
+- Is Alpine-based DIND compatible with the existing Bun-built wrapper in all target regions/CPU variants?
+- Do we need arm64 Kilo platform packages in `/opt/kilo-agent`, or are Cloudflare Containers always x64 for this workload?
+- Should `/opt/kilo-agent` include both glibc and musl binaries, or should we start with only musl to reduce image size?
+- How should devcontainer private registry credentials be passed without leaking into image build logs?
diff --git a/services/cloud-agent-next/Dockerfile.dind b/services/cloud-agent-next/Dockerfile.dind
new file mode 100644
index 0000000000..f9533e75d7
--- /dev/null
+++ b/services/cloud-agent-next/Dockerfile.dind
@@ -0,0 +1,121 @@
+ARG SANDBOX_VERSION="0.8.9"
+
+FROM docker.io/cloudflare/sandbox:${SANDBOX_VERSION}-musl AS cloudflare-sandbox
+
+FROM docker:dind-rootless
+
+USER root
+
+# Build arguments for metadata (all optional with defaults)
+ARG BUILD_DATE=""
+ARG VCS_REF=""
+ARG KILOCODE_CLI_VERSION="7.1.23"
+
+# Cloudflare Containers run without root privileges, so Docker must run in
+# rootless mode. The Sandbox SDK server is copied into this image so the
+# Durable Object can still control the container while dockerd runs as a child
+# process.
+COPY --from=cloudflare-sandbox /container-server/sandbox /sandbox
+COPY --from=cloudflare-sandbox /usr/lib/libstdc++.so.6 /usr/lib/libstdc++.so.6
+COPY --from=cloudflare-sandbox /usr/lib/libgcc_s.so.1 /usr/lib/libgcc_s.so.1
+COPY --from=cloudflare-sandbox /bin/bash /bin/bash
+COPY --from=cloudflare-sandbox /usr/lib/libreadline.so.8 /usr/lib/libreadline.so.8
+COPY --from=cloudflare-sandbox /usr/lib/libreadline.so.8.2 /usr/lib/libreadline.so.8.2
+
+RUN apk add --no-cache \
+    bash \
+    curl \
+    git \
+    git-lfs \
+    jq \
+    nodejs \
+    npm \
+    openssh-client \
+    tar \
+    wget
+
+# Install GitHub CLI from the official release. Alpine packages can lag the
+# Debian package used in Dockerfile, so pin the upstream binary archive here.
+RUN GH_VERSION="2.82.1" \
+    && wget -q -O /tmp/gh.tar.gz "https://github.com/cli/cli/releases/download/v${GH_VERSION}/gh_${GH_VERSION}_linux_amd64.tar.gz" \
+    && tar -xzf /tmp/gh.tar.gz -C /tmp \
+    && cp "/tmp/gh_${GH_VERSION}_linux_amd64/bin/gh" /usr/local/bin/gh \
+    && chmod +x /usr/local/bin/gh \
+    && rm -rf /tmp/gh.tar.gz "/tmp/gh_${GH_VERSION}_linux_amd64"
+
+# Install GitLab CLI from the official Linux amd64 binary archive.
+RUN GLAB_VERSION="1.80.4" \
+    && wget -q -O /tmp/glab.tar.gz "https://gitlab.com/gitlab-org/cli/-/releases/v${GLAB_VERSION}/downloads/glab_${GLAB_VERSION}_linux_amd64.tar.gz" \
+    && tar -xzf /tmp/glab.tar.gz -C /tmp \
+    && cp /tmp/bin/glab /usr/local/bin/glab \
+    && chmod +x /usr/local/bin/glab \
+    && rm -rf /tmp/glab.tar.gz /tmp/bin
+
+# Tools used by the outer sandbox. Kilo itself is still installed globally for
+# the existing wrapper path; the platform package bundle under /opt/kilo-agent
+# is intended for mounting or copying into inner dev containers.
+RUN npm install -g bun pnpm @devcontainers/cli @kilocode/cli@${KILOCODE_CLI_VERSION}
+
+RUN mkdir -p /opt/kilo-agent/bin \
+    /opt/kilo-agent/cli-linux-x64 \
+    /opt/kilo-agent/cli-linux-x64-musl \
+    && npm pack \
+      "@kilocode/cli-linux-x64@${KILOCODE_CLI_VERSION}" \
+      "@kilocode/cli-linux-x64-musl@${KILOCODE_CLI_VERSION}" \
+      --pack-destination /tmp \
+    && tar -xzf "/tmp/kilocode-cli-linux-x64-${KILOCODE_CLI_VERSION}.tgz" \
+      -C /opt/kilo-agent/cli-linux-x64 --strip-components=1 \
+    && tar -xzf "/tmp/kilocode-cli-linux-x64-musl-${KILOCODE_CLI_VERSION}.tgz" \
+      -C /opt/kilo-agent/cli-linux-x64-musl --strip-components=1 \
+    && rm -f /tmp/kilocode-cli-linux-x64-*.tgz \
+    && rm -f /tmp/kilocode-cli-linux-x64-musl-*.tgz \
+    && rm -f /opt/kilo-agent/cli-linux-x64/bin/*.map \
+    && rm -f /opt/kilo-agent/cli-linux-x64-musl/bin/*.map \
+    && chmod +x /opt/kilo-agent/cli-linux-x64/bin/kilo \
+    && chmod +x /opt/kilo-agent/cli-linux-x64-musl/bin/kilo
+
+RUN cat > /opt/kilo-agent/bin/kilo <<'EOF' \
+    && chmod +x /opt/kilo-agent/bin/kilo
+#!/bin/sh
+set -eu
+
+root="${KILO_AGENT_ROOT:-$(CDPATH= cd -- "$(dirname -- "$0")/.." && pwd)}"
+arch="$(uname -m)"
+
+if ldd --version 2>&1 | grep -qi musl; then
+  libc="musl"
+else
+  libc="glibc"
+fi
+
+case "$arch:$libc" in
+  x86_64:glibc) exec "$root/cli-linux-x64/bin/kilo" "$@" ;;
+  x86_64:musl) exec "$root/cli-linux-x64-musl/bin/kilo" "$@" ;;
+  *) echo "Unsupported devcontainer platform: $arch/$libc" >&2; exit 1 ;;
+esac
+EOF
+
+# === Build wrapper bundle inside container ===
+# This mirrors Dockerfile but builds on Alpine, matching the DIND base image.
+COPY wrapper /tmp/wrapper-build/wrapper
+COPY src/shared /tmp/wrapper-build/src/shared
+
+RUN cd /tmp/wrapper-build/wrapper \
+    && bun install --production \
+    && bun build src/main.ts --outfile=/usr/local/bin/kilocode-wrapper.js --target=bun --minify \
+    && bun build src/restore-session.ts --outfile=/usr/local/bin/kilo-restore-session.js --target=bun --minify \
+    && rm -rf /tmp/wrapper-build
+
+RUN printf '#!/bin/sh\n\
+  set -eu\n\
+  dockerd-entrypoint.sh dockerd --iptables=false --ip6tables=false &\n\
+  until docker version >/dev/null 2>&1; do sleep 0.2; done\n\
+  echo "Docker is ready"\n\
+  wait\n' > /home/rootless/boot-docker-for-dind.sh \
+  && chmod +x /home/rootless/boot-docker-for-dind.sh \
+  && chown rootless:rootless /home/rootless/boot-docker-for-dind.sh
+
+USER rootless
+
+ENTRYPOINT ["/sandbox"]
+CMD ["/home/rootless/boot-docker-for-dind.sh"]
diff --git a/services/cloud-agent-next/worker-configuration.d.ts b/services/cloud-agent-next/worker-configuration.d.ts
index 9cceb19433..3093a07ee5 100644
--- a/services/cloud-agent-next/worker-configuration.d.ts
+++ b/services/cloud-agent-next/worker-configuration.d.ts
@@ -1,5 +1,5 @@
 /* eslint-disable */
-// Generated by Wrangler by running `wrangler types` (hash: edb7ebd5d1ef6ff409168c7d77a89113)
+// Generated by Wrangler by running `wrangler types` (hash: fd604ad645220614b978b84ed33d728e)
 // Runtime types generated with workerd@1.20260312.1 2025-09-15 nodejs_compat
 declare namespace Cloudflare {
 	interface GlobalProps {
diff --git a/services/cloud-agent-next/wrangler.jsonc b/services/cloud-agent-next/wrangler.jsonc
index 6ca6a91568..aefaa95166 100644
--- a/services/cloud-agent-next/wrangler.jsonc
+++ b/services/cloud-agent-next/wrangler.jsonc
@@ -147,7 +147,7 @@
     },
     {
       "class_name": "SandboxSmall",
-      "image": "./Dockerfile",
+      "image": "./Dockerfile.dind",
       "instance_type": "standard-2",
       "image_vars": {
         "KILOCODE_CLI_VERSION": "7.1.23",
@@ -287,7 +287,7 @@
         },
         {
           "class_name": "SandboxSmall",
-          "image": "./Dockerfile.dev",
+          "image": "./Dockerfile.dind",
           "instance_type": "standard-2",
           "image_vars": {
             "KILOCODE_CLI_VERSION": "7.1.23",