diff --git a/docs/customization/README.md b/docs/customization/README.md
index e80c13ad1..2892ba23f 100644
--- a/docs/customization/README.md
+++ b/docs/customization/README.md
@@ -2,7 +2,7 @@
title: Customizing HVE Core
description: Overview of customization approaches from lightweight settings to full fork-and-extend, with role-based entry points
author: Microsoft
-ms.date: 2026-07-16
+ms.date: 2026-07-29
ms.topic: overview
keywords:
- customization
@@ -121,6 +121,7 @@ Each HVE role benefits from different customization techniques. The table below
8. [Environment Customization](environment.md): DevContainers, VS Code settings, MCP servers
9. [Team Adoption and Governance](team-adoption.md): Governance, naming, onboarding, change management
10. [Local Telemetry](local-telemetry.md): Enable local telemetry, review capture and storage schema mechanics, and generate reports
+11. [Bootstrapping a Project Knowledge Base](project-knowledge-base.md): Source-backed project memory that grounds humans and agents in a shared current understanding
## Related Resources
diff --git a/docs/customization/project-knowledge-base.md b/docs/customization/project-knowledge-base.md
new file mode 100644
index 000000000..1e25d71df
--- /dev/null
+++ b/docs/customization/project-knowledge-base.md
@@ -0,0 +1,177 @@
+---
+title: Bootstrapping a Project Knowledge Base
+description: Create a source-backed, repository-shaped project memory that grounds humans and agents in a shared current understanding
+author: Microsoft
+ms.date: 2026-07-29
+ms.topic: how-to
+keywords:
+ - knowledge base
+ - project memory
+ - context engineering
+ - agent grounding
+estimated_reading_time: 6
+---
+
+## What a Project Knowledge Base Is
+
+A project knowledge base (project KB) is a source-backed, repository-shaped
+memory for a project, engagement, product, or workstream. It models the
+durable context of the work, including the people, organizations, systems,
+concepts, decisions, risks, deliverables, and assets involved, so humans and
+agents can work from a shared current understanding.
+
+A project KB is not the same as the `docs/` folder in a working repository.
+Working-repo docs describe the thing being built. The project KB carries the
+context needed to understand why it is being built, who it affects, what has
+already been decided, and what an agent should read before generating new
+work.
+
+## When to Use One
+
+A project KB earns its maintenance cost when one or more of these hold:
+
+* The work spans multiple repositories that need the same shared context.
+* The project runs long enough that decisions, stakeholders, and constraints
+ change while people rotate in and out.
+* Agents assist with planning, drafting, or implementation and need grounding
+ beyond the source code, such as who owns a system or why a decision stands.
+* Meetings, emails, and workshops carry facts that would otherwise live only
+ in individual memory or scattered note files.
+
+For a short-lived, single-repo effort with a stable team, a well-kept `docs/`
+folder is usually enough.
+
+## Separate Repository Model
+
+A project KB works best as its own Git repository, cloned beside, mounted
+into, or referenced from one or more working repositories:
+
+```text
+workspace/
+|-- working-repo/
+| |-- src/
+| `-- docs/
+|
+`-- knowledge-base-repo/
+ |-- project/
+ |-- people/
+ |-- organizations/
+ |-- systems/
+ |-- concepts/
+ |-- events/
+ |-- decisions/
+ |-- risks/
+ |-- deliverables/
+ `-- assets/
+```
+
+Separation buys three things:
+
+* Portability. The same KB can ground several working repositories without
+ duplication.
+* Access control. Project context often has a different audience than source
+ code, and a separate repository can carry its own permissions.
+* Focus. The code repository stays about building the thing; the KB carries
+ the shared understanding around it.
+
+## Starter Taxonomy
+
+Each top-level directory holds one kind of durable context:
+
+| Directory | Holds |
+|------------------|---------------------------------------------------------------------------|
+| `project/` | Scope, timeline, workstreams, goals, success criteria, open questions |
+| `people/` | Stakeholders, roles, responsibilities, preferences, availability |
+| `organizations/` | Customers, partners, vendors, internal teams |
+| `systems/` | Applications, platforms, data stores, integrations, technical constraints |
+| `concepts/` | Domain language, business concepts, policies, processes, patterns |
+| `events/` | Meetings, emails, chats, workshops, research captures, agent sessions |
+| `decisions/` | Architectural, delivery, product, or process decisions |
+| `risks/` | Known risks, assumptions, mitigations, unresolved uncertainty |
+| `deliverables/` | Proposals, readouts, decks, summaries, designs, plans |
+| `assets/` | Source files, diagrams, media, templates, supporting material |
+
+Treat the taxonomy as a starting point. Add directories only when content
+demands them, and keep one clear admission rule per directory so contributors
+and agents know where each fact belongs.
+
+## The Event-to-Entity Update Loop
+
+The core pattern that keeps a project KB current:
+
+```text
+events -> update entities -> entities ground future work
+```
+
+```mermaid
+graph LR
+ A["Events
(meetings, emails, workshops)"] --> B["Entity updates
(people, systems, decisions, risks)"]
+ B --> C["Grounded future work
(humans and agents)"]
+ C --> A
+```
+
+In this model a meeting is not just meeting notes. It is evidence that may
+update a person profile, a system description, a project risk, a decision
+record, or a concept definition. For example, a design review where a
+stakeholder changes roles and a latency constraint is agreed should produce
+three writes: the event capture under `events/`, an updated role on the
+person's profile under `people/`, and a new constraint on the relevant page
+under `systems/`.
+
+This loop is what makes the KB useful for agent-assisted continuity. An agent
+that reads current entities inherits the accumulated judgment of every prior
+event without replaying the events themselves.
+
+## Referencing the KB from a Working Repository
+
+Use an instructions file to point agents at the KB. With the KB cloned as a
+peer of the working repository:
+
+```markdown
+---
+applyTo: '**'
+---
+
+# Project knowledge
+
+Before planning or generating work, read the project knowledge base cloned at
+`../knowledge-base-repo/`. Treat it as the source of truth for people,
+systems, decisions, and open risks. When new evidence contradicts it, propose
+a KB update rather than working from the stale fact.
+```
+
+Saved as `.github/instructions/project-knowledge.instructions.md`, this
+grounds every Copilot conversation in the working repository. See
+[Customizing with Instructions](instructions.md) for the mechanism.
+
+## Maintenance Guardrails
+
+Folder structure alone does not keep a KB trustworthy. Apply these rules from
+day one:
+
+* Source-backed updates only. Every entity fact should trace to an event
+ capture or an external source. Restructure and summarize what sources say;
+ never invent detail the sources do not contain.
+* Date-stamp decaying facts. Roles, availability, and status change; a fact
+ with a date can be judged, an undated fact must be re-verified.
+* One canonical page per concept. When two pages describe the same thing,
+ merge them rather than letting definitions fork.
+* No catch-all files. Inbox-style dumping grounds accumulate facts that never
+ reach the entity they should update. If a fact has no clear home, that is a
+ taxonomy conversation, not a triage file.
+* Curate on a cadence. Schedule a recurring pass, human or agent-assisted, to
+ find stale facts, misplaced files, and conflicting concepts before they
+ erode trust in the KB.
+
+## Possible Follow-On Work
+
+This recipe is deliberately documentation-only. If teams find the pattern
+useful, natural extensions include a scaffold generator or bootstrap skill for
+the starter taxonomy, schema validation for entity frontmatter, and a curator
+agent that automates the maintenance pass. Each of those should be its own
+proposal.
+
+
+*🤖 Crafted with precision by ✨Copilot following brilliant human instruction,
+then carefully refined by our team of discerning human reviewers.*
+