diff --git a/docs/custom-providers.md b/docs/custom-providers.md
index 1d6d67d453..ef0281ec7f 100644
--- a/docs/custom-providers.md
+++ b/docs/custom-providers.md
@@ -777,6 +777,8 @@ The built-in `claude` provider appends concrete model IDs from `~/.claude/settin
 
 This lets users who already configured Claude Code for Bedrock, OpenRouter, ollama, Z.AI, or another Anthropic-compatible gateway select the exact model ID in Paseo. Explicit model IDs are passed unchanged to Claude Code, even when the same string is a compatibility alias for a built-in model. When `agents.providers.claude.models` is set it **replaces** both the hardcoded first-party Claude list and any settings.json-discovered entries; use `agents.providers.claude.additionalModels` to keep the first-party list and append curated entries on top.
 
+Paseo's effort selector does not inherit `effortLevel` from Claude's settings.json. Select an effort in Paseo to choose a specific value.
+
 ### Gotcha: `extends: "claude"` with third-party endpoints
 
 When a custom provider extends `"claude"` but points `ANTHROPIC_BASE_URL` at a non-Anthropic API (Z.AI, Alibaba/Qwen, proxies), the Claude Agent SDK may try to use Anthropic-only server-side tools like `WebSearch`. Third-party APIs don't support these tools, causing errors.
diff --git a/packages/server/src/server/agent/providers/claude/models.test.ts b/packages/server/src/server/agent/providers/claude/models.test.ts
index 0daa5e533a..464964cf3a 100644
--- a/packages/server/src/server/agent/providers/claude/models.test.ts
+++ b/packages/server/src/server/agent/providers/claude/models.test.ts
@@ -365,7 +365,21 @@ describe("ClaudeAgentClient.fetchCatalog", () => {
     );
   });
 
-  it("appends concrete models from Claude settings.json", async () => {
+  it("appends concrete models from Claude settings.json with thinking options", async () => {
+    const customModelThinkingOptions = [
+      { id: "low", label: "Low" },
+      { id: "medium", label: "Medium" },
+      { id: "high", label: "High", isDefault: true },
+      { id: "max", label: "Max" },
+    ];
+    const fableThinkingOptions = [
+      { id: "low", label: "Low" },
+      { id: "medium", label: "Medium" },
+      { id: "high", label: "High", isDefault: true },
+      { id: "xhigh", label: "Extra High" },
+      { id: "max", label: "Max" },
+      { id: CLAUDE_ULTRACODE_THINKING_OPTION_ID, label: "Ultra Code" },
+    ];
     const configDir = await createClaudeConfigDir({
       model: "us.anthropic.claude-opus-4-7[1m]",
       env: {
@@ -393,42 +407,49 @@ describe("ClaudeAgentClient.fetchCatalog", () => {
         id: "us.anthropic.claude-opus-4-7[1m]",
         label: "us.anthropic.claude-opus-4-7[1m]",
         description: "From Claude settings.json model",
+        thinkingOptions: customModelThinkingOptions,
       },
       {
         provider: "claude",
         id: "openrouter/anthropic/claude-sonnet-4.5",
         label: "openrouter/anthropic/claude-sonnet-4.5",
         description: "From Claude settings.json env.ANTHROPIC_MODEL",
+        thinkingOptions: customModelThinkingOptions,
       },
       {
         provider: "claude",
         id: "ollama/qwen3-coder",
         label: "ollama/qwen3-coder",
         description: "From Claude settings.json env.ANTHROPIC_SMALL_FAST_MODEL",
+        thinkingOptions: customModelThinkingOptions,
       },
       {
         provider: "claude",
         id: "claude-fable-5-1[1M]",
         label: "claude-fable-5-1[1M]",
         description: "From Claude settings.json env.ANTHROPIC_DEFAULT_FABLE_MODEL",
+        thinkingOptions: fableThinkingOptions,
       },
       {
         provider: "claude",
         id: "bedrock-opus-from-env",
         label: "bedrock-opus-from-env",
         description: "From Claude settings.json env.ANTHROPIC_DEFAULT_OPUS_MODEL",
+        thinkingOptions: customModelThinkingOptions,
       },
       {
         provider: "claude",
         id: "glm-5.1",
         label: "glm-5.1",
         description: "From Claude settings.json env.ANTHROPIC_DEFAULT_SONNET_MODEL",
+        thinkingOptions: customModelThinkingOptions,
       },
       {
         provider: "claude",
         id: "glm-5",
         label: "glm-5",
         description: "From Claude settings.json env.ANTHROPIC_DEFAULT_HAIKU_MODEL",
+        thinkingOptions: customModelThinkingOptions,
       },
     ]);
     expect(models.filter((model) => model.id === "claude-fable-5-1[1M]")).toHaveLength(1);
diff --git a/packages/server/src/server/agent/providers/claude/models.ts b/packages/server/src/server/agent/providers/claude/models.ts
index 2a9b801fdb..80f5a38e68 100644
--- a/packages/server/src/server/agent/providers/claude/models.ts
+++ b/packages/server/src/server/agent/providers/claude/models.ts
@@ -83,7 +83,7 @@ export async function getClaudeModelsWithSettings(
     const manifestModel = getClaudeModels(claudeCodeVersion).find(
       (candidate) => candidate.id === model.id,
     );
-    models.push({ ...manifestModel, ...model });
+    models.push(resolveConfiguredClaudeModel({ ...manifestModel, ...model }));
   }
 
   return models;