diff --git a/afs/local-fs/src/index.ts b/afs/local-fs/src/index.ts
index 169374d6f..e8053b21c 100644
--- a/afs/local-fs/src/index.ts
+++ b/afs/local-fs/src/index.ts
@@ -12,7 +12,7 @@ import { globStream } from "glob";
 import { z } from "zod";
 import { searchWithRipgrep } from "./utils/ripgrep.js";
 
-const LIST_MAX_LIMIT = 50;
+const LIST_MAX_LIMIT = 1000;
 
 export interface LocalFSOptions {
   name?: string;
@@ -48,7 +48,8 @@ export class LocalFS implements AFSModule {
     const limit = Math.min(options?.limit || LIST_MAX_LIMIT, LIST_MAX_LIMIT);
     const basePath = join(this.options.localPath, path);
 
-    const pattern = options?.recursive ? "**/*" : "*";
+    const pattern =
+      options?.recursive || (options?.maxDepth && options.maxDepth > 1) ? "**/*" : "*";
 
     const abortController = new AbortController();
 
diff --git a/packages/core/src/prompt/skills/afs.ts b/packages/core/src/prompt/skills/afs.ts
index a6589a847..212a2c09f 100644
--- a/packages/core/src/prompt/skills/afs.ts
+++ b/packages/core/src/prompt/skills/afs.ts
@@ -7,25 +7,26 @@ export async function getAFSSkills(afs: AFS): Promise<Agent[]> {
     FunctionAgent.from({
       name: "afs_list",
       description:
-        "Browse directory contents in the AFS like filesystem ls/tree command - shows files and folders in the specified path",
+        "Get a tree view of directory contents in the AFS - shows hierarchical structure of files and folders",
       inputSchema: z.object({
         path: z.string().describe("The directory path to browse (e.g., '/', '/docs', '/src')"),
         options: z
           .object({
-            recursive: z.boolean().optional().describe("Whether to list files recursively"),
-            maxDepth: z.number().optional().describe("Maximum depth to list files"),
-            limit: z.number().optional().describe("Maximum number of entries to return"),
+            maxDepth: z.number().optional().describe("Maximum depth to display in the tree view"),
           })
           .optional(),
       }),
       process: async (input) => {
-        const result = await afs.list(input.path, input.options);
+        const { list, message } = await afs.list(input.path, input.options);
+
+        const result = buildTreeView(list);
 
         return {
           status: "success",
           tool: "afs_list",
           options: input.options,
-          ...result,
+          message,
+          result,
         };
       },
     }),
@@ -122,3 +123,32 @@ export async function getAFSSkills(afs: AFS): Promise<Agent[]> {
     }),
   ];
 }
+
+function buildTreeView(entries: { path: string }[]): string {
+  const tree: Record<string, any> = {};
+
+  for (const entry of entries) {
+    const parts = entry.path.split("/").filter(Boolean);
+    let current = tree;
+
+    for (const part of parts) {
+      if (!current[part]) {
+        current[part] = {};
+      }
+      current = current[part];
+    }
+  }
+
+  function renderTree(node: Record<string, any>, prefix = ""): string {
+    let result = "";
+    const keys = Object.keys(node);
+    keys.forEach((key, index) => {
+      const isLast = index === keys.length - 1;
+      result += `${prefix}${isLast ? "└── " : "├── "}${key}\n`;
+      result += renderTree(node[key], `${prefix}${isLast ? "    " : "│   "}`);
+    });
+    return result;
+  }
+
+  return renderTree(tree);
+}
diff --git a/packages/core/test/prompt/prompt-builder.test.ts b/packages/core/test/prompt/prompt-builder.test.ts
index 960e00b62..2ab2dc86c 100644
--- a/packages/core/test/prompt/prompt-builder.test.ts
+++ b/packages/core/test/prompt/prompt-builder.test.ts
@@ -660,7 +660,7 @@ test("PromptBuilder should build with afs correctly", async () => {
       "tools": [
         {
           "function": {
-            "description": "Browse directory contents in the AFS like filesystem ls/tree command - shows files and folders in the specified path",
+            "description": "Get a tree view of directory contents in the AFS - shows hierarchical structure of files and folders",
             "name": "afs_list",
             "parameters": {
               "$schema": "http://json-schema.org/draft-07/schema#",
@@ -669,18 +669,10 @@ test("PromptBuilder should build with afs correctly", async () => {
                 "options": {
                   "additionalProperties": false,
                   "properties": {
-                    "limit": {
-                      "description": "Maximum number of entries to return",
-                      "type": "number",
-                    },
                     "maxDepth": {
-                      "description": "Maximum depth to list files",
+                      "description": "Maximum depth to display in the tree view",
                       "type": "number",
                     },
-                    "recursive": {
-                      "description": "Whether to list files recursively",
-                      "type": "boolean",
-                    },
                   },
                   "required": [],
                   "type": "object",
diff --git a/packages/core/test/prompt/skills/afs.test.ts b/packages/core/test/prompt/skills/afs.test.ts
index 358ec463b..59cc8d2df 100644
--- a/packages/core/test/prompt/skills/afs.test.ts
+++ b/packages/core/test/prompt/skills/afs.test.ts
@@ -17,7 +17,7 @@ test("getAFSSkills should return all AFS skills", async () => {
   ).toMatchInlineSnapshot(`
     [
       {
-        "description": "Browse directory contents in the AFS like filesystem ls/tree command - shows files and folders in the specified path",
+        "description": "Get a tree view of directory contents in the AFS - shows hierarchical structure of files and folders",
         "inputSchema": {
           "$schema": "http://json-schema.org/draft-07/schema#",
           "additionalProperties": true,
@@ -25,18 +25,10 @@ test("getAFSSkills should return all AFS skills", async () => {
             "options": {
               "additionalProperties": false,
               "properties": {
-                "limit": {
-                  "description": "Maximum number of entries to return",
-                  "type": "number",
-                },
                 "maxDepth": {
-                  "description": "Maximum depth to list files",
+                  "description": "Maximum depth to display in the tree view",
                   "type": "number",
                 },
-                "recursive": {
-                  "description": "Whether to list files recursively",
-                  "type": "boolean",
-                },
               },
               "type": "object",
             },
@@ -193,10 +185,10 @@ test("AFS'skill list should invoke afs.list", async () => {
   assert(list);
   expect(await list.invoke({ path: "/foo/bar", options: { maxDepth: 2 } })).toMatchInlineSnapshot(`
     {
-      "list": [],
       "options": {
         "maxDepth": 2,
       },
+      "result": "",
       "status": "success",
       "tool": "afs_list",
     }