diff --git a/registry/coder-labs/modules/copilot/main.tf b/registry/coder-labs/modules/copilot/main.tf
index 9327fb87..7a6f73f4 100644
--- a/registry/coder-labs/modules/copilot/main.tf
+++ b/registry/coder-labs/modules/copilot/main.tf
@@ -285,18 +285,18 @@ module "agentapi" {
   source  = "registry.coder.com/coder/agentapi/coder"
   version = "2.2.0"
 
-  agent_id             = var.agent_id
-  folder               = local.workdir
-  web_app_slug         = local.app_slug
-  web_app_order        = var.order
-  web_app_group        = var.group
-  web_app_icon         = var.icon
-  web_app_display_name = var.web_app_display_name
-  cli_app              = var.cli_app
-  cli_app_slug         = var.cli_app ? "${local.app_slug}-cli" : null
-  cli_app_icon         = var.cli_app ? var.icon : null
-  cli_app_display_name = var.cli_app ? var.cli_app_display_name : null
-  agentapi_subdomain   = var.subdomain
+  agent_id                 = var.agent_id
+  folder                   = local.workdir
+  web_app_slug             = local.app_slug
+  web_app_order            = var.order
+  web_app_group            = var.group
+  web_app_icon             = var.icon
+  web_app_display_name     = var.web_app_display_name
+  cli_app                  = var.cli_app
+  cli_app_slug             = var.cli_app ? "${local.app_slug}-cli" : null
+  cli_app_icon             = var.cli_app ? var.icon : null
+  cli_app_display_name     = var.cli_app ? var.cli_app_display_name : null
+  agentapi_subdomain       = var.subdomain
   module_dir_name          = local.module_dir_name
   install_agentapi         = var.install_agentapi
   agentapi_version         = var.agentapi_version
@@ -322,6 +322,7 @@ module "agentapi" {
     ARG_TRUSTED_DIRECTORIES='${join(",", var.trusted_directories)}' \
     ARG_EXTERNAL_AUTH_ID='${var.external_auth_id}' \
     ARG_RESUME_SESSION='${var.resume_session}' \
+    ARG_REPORT_TASKS='${var.report_tasks}' \
     ARG_ENABLE_AIBRIDGE_PROXY='${var.enable_aibridge_proxy}' \
     ARG_AIBRIDGE_PROXY_AUTH_URL='${var.aibridge_proxy_auth_url != null ? var.aibridge_proxy_auth_url : ""}' \
     ARG_AIBRIDGE_PROXY_CERT_PATH='${var.aibridge_proxy_cert_path != null ? var.aibridge_proxy_cert_path : ""}' \
diff --git a/registry/coder-labs/modules/copilot/scripts/start.sh b/registry/coder-labs/modules/copilot/scripts/start.sh
index 792a8ce2..c7a1afb3 100644
--- a/registry/coder-labs/modules/copilot/scripts/start.sh
+++ b/registry/coder-labs/modules/copilot/scripts/start.sh
@@ -23,27 +23,34 @@ ARG_DENY_TOOLS=${ARG_DENY_TOOLS:-}
 ARG_TRUSTED_DIRECTORIES=${ARG_TRUSTED_DIRECTORIES:-}
 ARG_EXTERNAL_AUTH_ID=${ARG_EXTERNAL_AUTH_ID:-github}
 ARG_RESUME_SESSION=${ARG_RESUME_SESSION:-true}
+ARG_REPORT_TASKS=${ARG_REPORT_TASKS:-true}
 ARG_ENABLE_AIBRIDGE_PROXY=${ARG_ENABLE_AIBRIDGE_PROXY:-false}
 ARG_AIBRIDGE_PROXY_AUTH_URL=${ARG_AIBRIDGE_PROXY_AUTH_URL:-}
 ARG_AIBRIDGE_PROXY_CERT_PATH=${ARG_AIBRIDGE_PROXY_CERT_PATH:-}
 
 validate_copilot_installation() {
   if ! command_exists copilot; then
-    echo "ERROR: Copilot not installed. Run: npm install -g @github/copilot"
+    echo "ERROR: Copilot not installed or not in PATH. Please ensure Copilot CLI is installed and accessible."
     exit 1
   fi
 }
 
 build_initial_prompt() {
   local initial_prompt=""
+  local task_prompt="$ARG_AI_PROMPT"
 
-  if [ -n "$ARG_AI_PROMPT" ]; then
+  # Add task reporting instruction when report_tasks is enabled
+  if [ -n "$ARG_AI_PROMPT" ] && [ "$ARG_REPORT_TASKS" = "true" ]; then
+    task_prompt="Every step of the way, report your progress using Coder.coder_report_task tool with proper summary and statuses. Your task at hand: $ARG_AI_PROMPT"
+  fi
+
+  if [ -n "$task_prompt" ]; then
     if [ -n "$ARG_SYSTEM_PROMPT" ]; then
       initial_prompt="$ARG_SYSTEM_PROMPT
 
-$ARG_AI_PROMPT"
+$task_prompt"
     else
-      initial_prompt="$ARG_AI_PROMPT"
+      initial_prompt="$task_prompt"
     fi
   fi