diff --git a/content/docs/meta.json b/content/docs/meta.json
index 7157fa9..0fb8aeb 100644
--- a/content/docs/meta.json
+++ b/content/docs/meta.json
@@ -4,6 +4,7 @@
"index",
"quickstart",
"concepts",
+ "workspace-config",
"architecture",
"org-template",
"plugins",
@@ -19,4 +20,4 @@
"---Runtimes---",
"google-adk"
]
-}
+}
\ No newline at end of file
diff --git a/content/docs/workspace-config.mdx b/content/docs/workspace-config.mdx
new file mode 100644
index 0000000..e2d6549
--- /dev/null
+++ b/content/docs/workspace-config.mdx
@@ -0,0 +1,166 @@
+---
+title: Workspace Configuration
+description: Configure workspaces via config.yaml — runtime, model, tier, and Claude-specific settings including effort levels and task budget for Claude Opus 4.7.
+---
+
+import { Callout } from 'fumadocs-ui/components/callout';
+
+# Workspace Configuration
+
+Every Molecule AI workspace is backed by a `config.yaml` file. The **Config tab** in the canvas lets you edit this file through a structured form or in raw YAML mode. Changes take effect on the next workspace restart.
+
+---
+
+## Opening the Config tab
+
+1. Click any workspace node on the canvas to open its sidebar
+2. Select the **Config** tab
+3. Edit fields in the form view, or toggle **Raw YAML** in the top-right to edit `config.yaml` directly
+4. Click **Save** to write the file, or **Save & Restart** to apply changes immediately
+
+---
+
+## Claude Settings
+
+The **Claude Settings** section of the Config tab exposes two primitives from the Claude Opus 4.7 API: **effort level** and **task budget**. These control how much reasoning work Claude does per turn — trading cost and latency for output quality.
+
+
+ **Availability:** Claude Settings are only shown for workspaces running `runtime: claude-code` or using a model whose name includes `claude` or `anthropic`. The section is hidden for other runtimes and models.
+
+
+The section is collapsed by default. Click **Claude Settings** to expand it.
+
+---
+
+## Effort levels
+
+The **Effort** dropdown sets `output_config.effort` on the Claude Messages API call for every turn in this workspace.
+
+| Value | Label | What it does | When to use |
+|---|---|---|---|
+| *(unset)* | — model default — | No `effort` field sent; Claude uses its built-in default | Everyday tasks where you want Claude to decide |
+| `low` | low | Minimal reasoning steps; fastest response, lowest cost | Quick lookups, simple rewrites, high-throughput pipelines where latency matters |
+| `medium` | medium | Balanced reasoning; Claude's typical quality for most tasks | General coding, writing, Q&A — a good starting point |
+| `high` | high | More deliberate reasoning; higher quality, higher cost | Code review, architecture decisions, nuanced analysis |
+| `xhigh` | xhigh (extended thinking) | **Activates extended thinking.** Claude works through the problem step-by-step before producing a final answer | Complex multi-step problems, hard debugging, long-range planning |
+| `max` | max — absolute ceiling | Maximum possible effort; extended thinking at full depth | Research-grade reasoning, competitive benchmarks, correctness-critical tasks where cost is not a constraint |
+
+### Tradeoffs
+
+Higher effort levels improve output quality at the cost of latency and token spend:
+
+- **Cost** scales roughly with reasoning depth. `max` can produce significantly more tokens than `low` on the same prompt.
+- **Latency** increases with effort because Claude takes more reasoning steps before responding.
+- **Quality** gains are most pronounced on tasks that require multi-step planning or where incorrect reasoning compounds (code generation, analysis, math).
+
+For most workspaces, leaving effort **unset** or at **medium** is the right default. Move to `high` or above for specialist worker agents that handle tasks where errors are expensive — a security auditor, an architect, a final reviewer.
+
+
+ `xhigh` and `max` activate **extended thinking**, which is only available on **Claude Opus 4.7** and later. Using these levels with earlier models or other providers will return an API error.
+
+
+---
+
+## Task budget
+
+The **Task Budget** field sets a token ceiling on how much thinking work Claude is allowed to do per turn. It maps to `output_config.task_budget.total` in the Messages API.
+
+| Field | Type | Default | Minimum |
+|---|---|---|---|
+| `task_budget` | integer (tokens) | 0 (unset) | 20,000 when set |
+
+**0 means unset** — no `task_budget` field is sent and Claude uses its own internal limit.
+
+When set to a non-zero value, Claude will not exceed that many tokens of thinking/reasoning per turn. This lets you cap spend on a per-workspace basis without changing the effort level.
+
+### When task budget applies
+
+Task budget only has an effect when:
+
+1. The workspace is running `runtime: claude-code` or a `claude`/`anthropic` model
+2. The beta header `task-budgets-2026-03-13` is enabled (see [Beta header](#beta-header-requirement) below)
+3. The effort level is `xhigh` or `max` (extended thinking must be active for the budget to be exercised)
+
+Setting a `task_budget` on a `low`/`medium`/`high` effort workspace is harmless — it will be sent but has no practical effect without extended thinking active.
+
+### Guidance
+
+- **20,000 tokens** is the beta minimum. Values below this are ignored by the API.
+- **50,000–100,000 tokens** covers most complex coding and analysis tasks.
+- **200,000+ tokens** is appropriate for research-grade or competitive-benchmark workloads.
+- A tighter budget reduces cost on `xhigh`/`max` workspaces but may truncate reasoning on very hard problems. Watch your workspace metrics and adjust if you see quality regressions.
+
+
+ **Executor wiring — coming in the next release.** The Config tab writes `effort` and `task_budget` to `config.yaml` today (PRs #639 and #654). The workspace executor that reads these values and passes them to the Claude SDK is tracked on the workspace-template side and will ship in the next release. Until that lands, the config is stored and visible but does not yet affect inference.
+
+
+---
+
+## config.yaml reference
+
+Both fields serialize as top-level keys in `config.yaml`:
+
+```yaml title="config.yaml — effort + task_budget examples"
+name: Senior Reviewer
+runtime: claude-code
+model: anthropic:claude-opus-4-7
+role: |
+ You are a senior engineer performing code review. Be thorough.
+tier: 3
+
+# Claude Settings
+effort: high
+task_budget: 0 # 0 = unset; omitted from API call
+```
+
+```yaml title="config.yaml — extended thinking at a fixed budget"
+name: Architect
+runtime: claude-code
+model: anthropic:claude-opus-4-7
+role: |
+ You design systems. Think deeply before recommending an architecture.
+tier: 3
+
+effort: xhigh
+task_budget: 80000 # cap thinking at 80k tokens per turn
+```
+
+```yaml title="config.yaml — max effort, no budget cap"
+name: Research Agent
+runtime: claude-code
+model: anthropic:claude-opus-4-7
+role: |
+ You conduct research. Quality is the only constraint.
+tier: 4
+
+effort: max
+# task_budget omitted — no ceiling on reasoning depth
+```
+
+When `task_budget` is `0`, `toYaml()` omits it from the file entirely — the field only appears in `config.yaml` when it holds a positive value.
+
+---
+
+## Beta header requirement
+
+The `task_budget` feature requires the Anthropic API beta header:
+
+```
+anthropic-beta: task-budgets-2026-03-13
+```
+
+This header is added automatically by the workspace executor when `task_budget > 0` is present in `config.yaml`. You do not need to set it manually in your workspace config — it is an implementation detail of the executor, not a user-configurable option.
+
+
+ If you call the Anthropic Messages API directly (outside of a Molecule AI workspace), you must include `anthropic-beta: task-budgets-2026-03-13` in your request headers for `output_config.task_budget` to take effect. Omitting it causes the parameter to be silently ignored.
+
+
+---
+
+## See also
+
+- [Concepts — Workspaces](/docs/concepts#workspaces) — workspace primitives overview
+- [Org Template](/docs/org-template) — deploy effort/task_budget settings across an entire team via `org.yaml`
+- [Observability](/docs/observability) — monitor token usage per workspace to tune your budget settings
+- [API Reference — POST /workspaces](/docs/api-reference#post-workspaces)
+- [Claude Opus 4.7 — Anthropic docs](https://docs.anthropic.com) — upstream reference for `output_config`
\ No newline at end of file