diff --git a/src/vs/workbench/contrib/chat/common/plugins/agentPluginServiceImpl.ts b/src/vs/workbench/contrib/chat/common/plugins/agentPluginServiceImpl.ts
index 4d5cbf8eff6..67bfb2e955f 100644
--- a/src/vs/workbench/contrib/chat/common/plugins/agentPluginServiceImpl.ts
+++ b/src/vs/workbench/contrib/chat/common/plugins/agentPluginServiceImpl.ts
@@ -510,7 +510,7 @@ export abstract class AbstractAgentPluginDiscovery extends Disposable implements
 		};
 
 		const commands = observeComponent('commands', d => this._readMarkdownComponents(d));
-		const skills = observeComponent('skills', d => this._readSkills(d));
+		const skills = observeComponent('skills', d => this._readSkills(uri, d));
 		const agents = observeComponent('agents', d => this._readMarkdownComponents(d));
 		const instructions = observeComponent('rules', d => this._readRules(d));
 		const hooks = observeComponent(
@@ -699,7 +699,7 @@ export abstract class AbstractAgentPluginDiscovery extends Disposable implements
 		}
 	}
 
-	private async _readSkills(dirs: readonly URI[]): Promise<readonly IAgentPluginSkill[]> {
+	private async _readSkills(pluginRoot: URI, dirs: readonly URI[]): Promise<readonly IAgentPluginSkill[]> {
 		const seen = new Set<string>();
 		const skills: IAgentPluginSkill[] = [];
 
@@ -738,6 +738,14 @@ export abstract class AbstractAgentPluginDiscovery extends Disposable implements
 			}
 		}
 
+		// Fallback: support single-skill plugins with SKILL.md at the plugin root
+		if (skills.length === 0) {
+			const rootSkillMd = URI.joinPath(pluginRoot, 'SKILL.md');
+			if (await this._pathExists(rootSkillMd)) {
+				addSkill(basename(pluginRoot), rootSkillMd);
+			}
+		}
+
 		skills.sort((a, b) => a.name.localeCompare(b.name));
 		return skills;
 	}
diff --git a/src/vs/workbench/contrib/chat/test/common/plugins/agentPluginFormatDetection.test.ts b/src/vs/workbench/contrib/chat/test/common/plugins/agentPluginFormatDetection.test.ts
index 9e79f04f26b..52623081371 100644
--- a/src/vs/workbench/contrib/chat/test/common/plugins/agentPluginFormatDetection.test.ts
+++ b/src/vs/workbench/contrib/chat/test/common/plugins/agentPluginFormatDetection.test.ts
@@ -242,6 +242,45 @@ suite('AgentPlugin format detection', () => {
 		assert.deepStrictEqual(skillNames, ['deploy', 'lint']);
 	}));
 
+	test('reads root-level SKILL.md as a fallback skill', () => runWithFakedTimers({ useFakeTimers: true }, async () => {
+		const uri = pluginUri('/plugins/root-skill');
+		await writeFile('/plugins/root-skill/.plugin/plugin.json', JSON.stringify({ name: 'root-skill' }));
+		await writeFile('/plugins/root-skill/SKILL.md', '# Visual Explainer');
+
+		const discovery = createDiscovery();
+		discovery.start(mockEnablementModel);
+		await discovery.setSourcesAndRefresh([uri]);
+
+		const plugins = discovery.plugins.get();
+		assert.strictEqual(plugins.length, 1);
+
+		await waitForState(plugins[0].skills, s => s.length > 0);
+		assert.deepStrictEqual(
+			plugins[0].skills.get().map(s => s.name),
+			['root-skill'],
+		);
+	}));
+
+	test('root-level SKILL.md is ignored when skills/ has content', () => runWithFakedTimers({ useFakeTimers: true }, async () => {
+		const uri = pluginUri('/plugins/root-skill-ignored');
+		await writeFile('/plugins/root-skill-ignored/.plugin/plugin.json', JSON.stringify({ name: 'root-skill-ignored' }));
+		await writeFile('/plugins/root-skill-ignored/SKILL.md', '# Root skill');
+		await writeFile('/plugins/root-skill-ignored/skills/real/SKILL.md', '# Real skill');
+
+		const discovery = createDiscovery();
+		discovery.start(mockEnablementModel);
+		await discovery.setSourcesAndRefresh([uri]);
+
+		const plugins = discovery.plugins.get();
+		assert.strictEqual(plugins.length, 1);
+
+		await waitForState(plugins[0].skills, s => s.length > 0);
+		assert.deepStrictEqual(
+			plugins[0].skills.get().map(s => s.name),
+			['real'],
+		);
+	}));
+
 	test('reads agents from agents/ directory', () => runWithFakedTimers({ useFakeTimers: true }, async () => {
 		const uri = pluginUri('/plugins/agents-plugin');
 		await writeFile('/plugins/agents-plugin/.plugin/plugin.json', JSON.stringify({ name: 'agents-plugin' }));