# Building Effective AI Coding Agents for the Terminal: Scaffolding, Harness, Context Engineering, and Lessons Learned

arXiv: https://arxiv.org/abs/2603.05344 · HTML: https://mlsanity.com/paper/2603.05344/

## Key facts

- Cited by 18 papers in the map (data through 14 Oct 2026).
- Placed in Software engineering coding agents, one of 16 directions in LLM agents and tool use.
- Builds on 42 of its 115 references that are in the map.
- First posted on arXiv 5 Mar 2026.

## Placed in

- LLM agents and tool use / [Software engineering coding agents](https://mlsanity.com/agents/software-engineering-coding-agents/)

## Builds on (most cited first, 30 of 42)

- [Evaluating Large Language Models Trained on Code](https://mlsanity.com/paper/2107.03374/) (2021)
- [Let's Verify Step by Step](https://mlsanity.com/paper/2305.20050/) (2023)
- [Program Synthesis with Large Language Models](https://mlsanity.com/paper/2108.07732/) (2021)
- [Voyager: An Open-Ended Embodied Agent with Large Language Models](https://mlsanity.com/paper/2305.16291/) (2023)
- [Code Llama: Open Foundation Models for Code](https://mlsanity.com/paper/2308.12950/) (2023)
- [SWE-agent: Agent-Computer Interfaces Enable Automated Software Engineering](https://mlsanity.com/paper/2405.15793/) (2024)
- [MemGPT: Towards LLMs as Operating Systems](https://mlsanity.com/paper/2310.08560/) (2023)
- [DeepSeek-Coder: When the Large Language Model Meets Programming -- The Rise of Code Intelligence](https://mlsanity.com/paper/2401.14196/) (2024)
- [Measuring and Narrowing the Compositionality Gap in Language Models](https://mlsanity.com/paper/2210.03350/) (2022)
- [OpenHands: An Open Platform for AI Software Developers as Generalist Agents](https://mlsanity.com/paper/2407.16741/) (2024)
- [Interleaving Retrieval with Chain-of-Thought Reasoning for Knowledge-Intensive Multi-Step Questions](https://mlsanity.com/paper/2212.10509/) (2022)
- [Measuring Coding Challenge Competence With APPS](https://mlsanity.com/paper/2105.09938/) (2021)
- [StarCoder: may the source be with you!](https://mlsanity.com/paper/2305.06161/) (2023)
- [RouteLLM: Learning to Route LLMs with Preference Data](https://mlsanity.com/paper/2406.18665/) (2024)
- [Executable Code Actions Elicit Better LLM Agents](https://mlsanity.com/paper/2402.01030/) (2024)
- [Agentless: Demystifying LLM-based Software Engineering Agents](https://mlsanity.com/paper/2407.01489/) (2024)
- [Memory in the Age of AI Agents](https://mlsanity.com/paper/2512.13564/) (2025)
- [SWE-Bench Pro: Can AI Agents Solve Long-Horizon Software Engineering Tasks?](https://mlsanity.com/paper/2509.16941/) (2025)
- [ReWOO: Decoupling Reasoning from Observations for Efficient Augmented Language Models](https://mlsanity.com/paper/2305.18323/) (2023)
- [Multi-SWE-bench: A Multilingual Benchmark for Issue Resolving](https://mlsanity.com/paper/2504.02605/) (2025)
- [Measuring AI Ability to Complete Long Software Tasks](https://mlsanity.com/paper/2503.14499/) (2025)
- [Tree Search for Language Model Agents](https://mlsanity.com/paper/2407.01476/) (2024)
- [Scaling Long-Horizon LLM Agent via Context-Folding](https://mlsanity.com/paper/2510.11967/) (2025)
- [Benchmark Data Contamination of Large Language Models: A Survey](https://mlsanity.com/paper/2406.04244/) (2024)
- [ACON: Optimizing Context Compression for Long-horizon LLM Agents](https://mlsanity.com/paper/2510.00615/) (2025)
- [MAGIS: LLM-Based Multi-Agent Framework for GitHub Issue Resolution](https://mlsanity.com/paper/2403.17927/) (2024)
- [A Survey of Context Engineering for Large Language Models](https://mlsanity.com/paper/2507.13334/) (2025)
- [Establishing Best Practices for Building Rigorous Agentic Benchmarks](https://mlsanity.com/paper/2507.02825/) (2025)
- [CodeR: Issue Resolving with Multi-Agent and Task Graphs](https://mlsanity.com/paper/2406.01304/) (2024)
- [TaskWeaver: A Code-First Agent Framework](https://mlsanity.com/paper/2311.17541/) (2023)

## Built on by (most cited first, 18 of 18)

- [Natural-Language Agent Harnesses](https://mlsanity.com/paper/2603.25723/) (2026)
- [Terminal-World: Scaling Terminal-Agent Environments via Agent Skills](https://mlsanity.com/paper/2605.20876/) (2026)
- [Crafter: A Multi-Agent Harness for Editable Scientific Figure Generation from Diverse Inputs](https://mlsanity.com/paper/2605.30611/) (2026)
- [CalibForge: Adversarial Solver Calibration for Scaling Learnable Terminal Tasks](https://mlsanity.com/paper/2608.06352/) (2026)
- [Effective Harness Engineering for Algorithm Discovery with Coding Agents](https://mlsanity.com/paper/2605.15221/) (2026)
- [Meta-Task: Turning Terminal Task Synthesis into a Terminal Task for Scalable Agent Training](https://mlsanity.com/paper/2607.27929/) (2026)
- [Learning When to Remember: Risk-Sensitive Contextual Bandits for Abstention-Aware Memory Retrieval in LLM-Based Coding Agents](https://mlsanity.com/paper/2604.27283/) (2026)
- [Agentic Coding Needs Proactivity, Not Just Autonomy](https://mlsanity.com/paper/2605.06717/) (2026)
- [Harnesses for Inference-Time Alignment over Execution Trajectories](https://mlsanity.com/paper/2605.21516/) (2026)
- [Autonomous heterogeneous catalyst discovery with a self-evolving multi-agent digital twin](https://mlsanity.com/paper/2606.05050/) (2026)
- [CORVUS: Context Optimization and Reduction Via Underlying Synchronization for LLM Coding Agents](https://mlsanity.com/paper/2607.22711/) (2026)
- [Environment Evolution for Terminal Agents](https://mlsanity.com/paper/2609.04128/) (2026)
- [Towards an Agent Operating System - Lessons from Classical and Cloud OS](https://mlsanity.com/paper/2607.25076/) (2026)
- [Harness the Memory: A Holistic Evaluation of Memory Substrates in Memory Agents](https://mlsanity.com/paper/2608.15008/) (2026)
- [Terminal Agents: A Survey of AI Agents in Command-Line Environments](https://mlsanity.com/paper/2608.20485/) (2026)
- [PYTHALAB-MERA: Validation-Grounded Memory, Retrieval, and Acceptance Control for Frozen-LLM Coding Agents](https://mlsanity.com/paper/2605.08468/) (2026)
- [PrimeAgentOrchestrator: Memory-Primed Agent Spawning for Personal AI Infrastructure](https://mlsanity.com/paper/2608.20342/) (2026)
- [When Agents Act Unwatched: The Reduced-Supervision Paradox in Agentic AI](https://mlsanity.com/paper/2609.29547/) (2026)

## Abstract (arXiv)

The landscape of AI coding assistance is undergoing a fundamental shift from complex IDE plugins to versatile, terminal-native agents. Operating directly where developers manage source control, execute builds, and deploy environments, CLI-based agents offer unprecedented autonomy for long-horizon development tasks. In this paper, we present OPENDEV, an open-source, command-line coding agent written in Rust, engineered specifically for this new paradigm. Effective autonomous assistance requires strict safety controls and highly efficient context management to prevent context bloat and reasoning degradation. OPENDEV overcomes these challenges through a compound AI system architecture with workload-specialized model routing, a dual-agent architecture separating planning from execution, lazy tool discovery, and adaptive context compaction that progressively reduces older observations. Furthermore, it employs an automated memory system to accumulate project-specific knowledge across sessions and counteracts instruction fade-out through event-driven system reminders. By enforcing explicit reasoning phases and prioritizing context efficiency, OPENDEV provides a secure, extensible foundation for terminal-first AI assistance, offering a blueprint for robust autonomous software engineering.