diff --git a/apps/server/src/environment/ServerEnvironment.ts b/apps/server/src/environment/ServerEnvironment.ts
index ad7a33334fc7..f61f43077747 100644
--- a/apps/server/src/environment/ServerEnvironment.ts
+++ b/apps/server/src/environment/ServerEnvironment.ts
@@ -175,6 +175,7 @@ export const make = Effect.gen(function* () {
       sourceControlSshPasswordPrompts: true,
       providerHandoff: true,
       threadMessageCorrection: true,
+      modelRouting: true,
       ...(serverSelfUpdate === null ? {} : { serverSelfUpdate }),
       ...(serverSelfUpdate === "boot-service" ? { serverSelfUpdateProgress: true } : {}),
       ...(desktopMcpPath === undefined ? {} : { computerView: true }),
diff --git a/apps/server/src/orchestration/Layers/ProviderCommandReactor.ts b/apps/server/src/orchestration/Layers/ProviderCommandReactor.ts
index 91b28d7beead..7bf815b0c654 100644
--- a/apps/server/src/orchestration/Layers/ProviderCommandReactor.ts
+++ b/apps/server/src/orchestration/Layers/ProviderCommandReactor.ts
@@ -533,7 +533,7 @@ const make = Effect.gen(function* () {
         provider: "mt",
         method: "thread.turn.start",
         detail:
-          "MT Model has no ready providers to route to. Enable Codex, Claude, Cursor, or another provider in Settings.",
+          "MT Auto has no ready providers to route to. Enable Codex, Claude, Cursor, or another provider in Settings.",
       });
     }
     const resolveActiveSession = (threadId: ThreadId) =>
@@ -683,7 +683,7 @@ const make = Effect.gen(function* () {
           tone: "info",
           kind: "thread.model-changed",
           summary: isMtModelSelection(stickyModelSelection)
-            ? (mtDecision?.reason ?? `MT Model → ${desiredModelSelection.model}`)
+            ? (mtDecision?.reason ?? `MT Auto → ${desiredModelSelection.model}`)
             : `Switched model to ${desiredModelSelection.model}`,
           payload: {
             fromInstanceId: String(currentInstanceId),
diff --git a/apps/server/src/provider/mtModelCloudflare.ts b/apps/server/src/provider/mtModelCloudflare.ts
index 2d773b48607b..66a7fc5b4ba8 100644
--- a/apps/server/src/provider/mtModelCloudflare.ts
+++ b/apps/server/src/provider/mtModelCloudflare.ts
@@ -1,7 +1,7 @@
 // @effect-diagnostics globalTimersInEffect:off - the classifier races a raw fetch against a deadline.
 // @effect-diagnostics preferSchemaOverJson:off - the worker response is untyped JSON, validated by hand below.
 /**
- * Optional Cloudflare classifier for MT Model.
+ * Optional Cloudflare classifier for MT Auto.
  *
  * MT Code matches T3 Code: local and $0 by default. This client stays dark
  * unless `MT_MODEL_ROUTER_URL` is set to an explicit worker URL. We never
diff --git a/apps/web/src/components/ChatView.logic.ts b/apps/web/src/components/ChatView.logic.ts
index 6d47bf37978b..d2325b69d4f5 100644
--- a/apps/web/src/components/ChatView.logic.ts
+++ b/apps/web/src/components/ChatView.logic.ts
@@ -405,7 +405,7 @@ export function deriveLockedProvider(input: {
   if (!threadHasStarted(input.thread)) {
     return null;
   }
-  // MT Model is a harness router. The live session sits on whatever backend
+  // MT Auto is a harness router. The live session sits on whatever backend
   // it picked; locking to that backend would steal the picker away from MT.
   if (isMtModelSelection(input.thread?.modelSelection)) {
     return null;
diff --git a/apps/web/src/components/ChatView.tsx b/apps/web/src/components/ChatView.tsx
index 25954b135d27..0aa32c35e611 100644
--- a/apps/web/src/components/ChatView.tsx
+++ b/apps/web/src/components/ChatView.tsx
@@ -2273,7 +2273,14 @@ function ChatViewContent(props: ChatViewProps) {
     versionMismatchServerLabel,
   ]);
   const providerStatuses = serverConfig?.providers ?? EMPTY_PROVIDERS;
-  const pickerProviders = useMemo(() => withMtModelProvider(providerStatuses), [providerStatuses]);
+  // Only the machine that will run the turn can route it; an older server
+  // rejects the `mt` instance instead of picking a backend.
+  const environmentCanRouteModels =
+    activeEnvironment?.serverConfig?.environment.capabilities.modelRouting !== false;
+  const pickerProviders = useMemo(
+    () => withMtModelProvider(providerStatuses, { serverCanRoute: environmentCanRouteModels }),
+    [environmentCanRouteModels, providerStatuses],
+  );
   const unlockedSelectedProvider = resolveSelectableProvider(
     providerStatuses,
     selectedProviderByThreadId ?? threadProvider,
diff --git a/apps/web/src/components/chat/ChatComposer.tsx b/apps/web/src/components/chat/ChatComposer.tsx
index f323d38061a0..e3c02d356395 100644
--- a/apps/web/src/components/chat/ChatComposer.tsx
+++ b/apps/web/src/components/chat/ChatComposer.tsx
@@ -264,6 +264,8 @@ import type { ReviewCommentContext } from "../../reviewCommentContext";
 import { useThreadShells } from "../../state/entities";
 import { searchThreadReferences } from "../../threadReferenceSearch";
 
+import { useEnvironmentPresentation } from "~/state/presentation";
+
 const runtimeModeConfig: Record<
   RuntimeMode,
   { label: string; description: string; icon: LucideIcon }
@@ -803,16 +805,28 @@ export const ChatComposer = memo(function ChatComposer(props: ChatComposerProps)
   // Instance-aware projection of the wire provider list. One entry per
   // configured instance (default built-in + any custom `providerInstances.*`),
   // sorted default-first per driver kind for a stable picker order.
+  // The turn runs on the thread's machine, and only a machine that understands
+  // the `mt` instance can route it. An older server answers with "unknown
+  // provider instance 'mt'", so the entry is withheld for those environments.
+  const { presentation: composerEnvironmentPresentation } = useEnvironmentPresentation(
+    _activeThreadEnvironmentId ?? environmentId,
+  );
+  const serverCanRoute =
+    composerEnvironmentPresentation?.serverConfig?.environment.capabilities.modelRouting !== false;
   const providerInstanceEntries = useMemo<ReadonlyArray<ProviderInstanceEntry>>(
     () =>
       prependMtModelPickerEntry(
         sortProviderInstanceEntries(
           applyProviderInstanceSettings(deriveProviderInstanceEntries(providerStatuses), settings),
         ),
+        { serverCanRoute },
       ),
-    [providerStatuses, settings],
+    [providerStatuses, serverCanRoute, settings],
+  );
+  const pickerProviders = useMemo(
+    () => withMtModelProvider(providerStatuses, { serverCanRoute }),
+    [providerStatuses, serverCanRoute],
   );
-  const pickerProviders = useMemo(() => withMtModelProvider(providerStatuses), [providerStatuses]);
   const selectedProviderByThreadId = composerDraft.activeProvider ?? null;
   const threadProvider =
     activeThread?.session?.providerInstanceId ??
@@ -857,7 +871,7 @@ export const ChatComposer = memo(function ChatComposer(props: ChatComposerProps)
   //   5. First enabled entry overall / default instance for the kind.
   //
   const selectedInstanceId = useMemo<ProviderInstanceId>(() => {
-    // Session instance is the *routed* backend after MT Model picks one.
+    // Session instance is the *routed* backend after MT Auto picks one.
     // Keep the sticky MT selection in the picker unless the draft explicitly
     // moved to another provider.
     if (
diff --git a/apps/web/src/mtModel.test.ts b/apps/web/src/mtModel.test.ts
index d31d60893925..716544cee983 100644
--- a/apps/web/src/mtModel.test.ts
+++ b/apps/web/src/mtModel.test.ts
@@ -1,10 +1,10 @@
 import { describe, expect, it } from "vite-plus/test";
-import { ProviderDriverKind, ProviderInstanceId } from "@t3tools/contracts";
+import { ProviderDriverKind, ProviderInstanceId, type ServerProvider } from "@t3tools/contracts";
 
 import { prependMtModelPickerEntry, withMtModelProvider } from "./mtModel.ts";
 
 describe("withMtModelProvider", () => {
-  it("prepends MT Model when another provider is ready", () => {
+  it("prepends MT Auto when another provider is ready", () => {
     const providers = withMtModelProvider([
       {
         instanceId: ProviderInstanceId.make("claudeAgent"),
@@ -32,7 +32,7 @@ describe("withMtModelProvider", () => {
     expect(providers[0]?.models[0]?.slug).toBe("mt-auto");
   });
 
-  it("hides MT Model when no backend is ready", () => {
+  it("hides MT Auto when no backend is ready", () => {
     expect(
       withMtModelProvider([
         {
@@ -52,7 +52,7 @@ describe("withMtModelProvider", () => {
     ).toBe(false);
   });
 
-  it("still offers MT Model when the only backend is in warning", () => {
+  it("still offers MT Auto when the only backend is in warning", () => {
     expect(
       withMtModelProvider([
         {
@@ -79,4 +79,43 @@ describe("withMtModelProvider", () => {
       ])[0]?.instanceId,
     ).toBe("mt");
   });
+
+  it("withholds the router from a machine whose server cannot route", () => {
+    // An older server answers a routed turn with "unknown provider instance
+    // 'mt'", so offering it there is a guaranteed failure.
+    const backends = [
+      {
+        instanceId: ProviderInstanceId.make("claudeAgent"),
+        driver: ProviderDriverKind.make("claudeAgent"),
+        enabled: true,
+        installed: true,
+        version: null,
+        status: "ready",
+        auth: { status: "unknown" },
+        checkedAt: "2026-08-18T00:00:00.000Z",
+        models: [
+          {
+            slug: "claude-sonnet-5",
+            name: "Sonnet 5",
+            isCustom: false,
+            isDefault: true,
+            capabilities: null,
+          },
+        ],
+        slashCommands: [],
+        skills: [],
+      },
+    ] satisfies ReadonlyArray<ServerProvider>;
+    expect(
+      withMtModelProvider(backends, { serverCanRoute: false }).map(
+        (provider) => provider.instanceId,
+      ),
+    ).not.toContain("mt");
+    expect(
+      withMtModelProvider(backends, { serverCanRoute: true }).map(
+        (provider) => provider.instanceId,
+      ),
+    ).toContain("mt");
+  });
+
 });
diff --git a/apps/web/src/mtModel.ts b/apps/web/src/mtModel.ts
index 06580fc7cd69..16108aeca9dc 100644
--- a/apps/web/src/mtModel.ts
+++ b/apps/web/src/mtModel.ts
@@ -22,7 +22,7 @@ export function createMtModelCapabilities() {
         id: MT_MODEL_ROUTE_MODE_OPTION_ID,
         label: "Routing",
         description:
-          "How aggressively MT Model spends quota on frontier models. Cost keeps chores cheap; Intelligence upgrades harder tasks. Routing is local and free.",
+          "How aggressively MT Auto spends quota on frontier models. Cost keeps chores cheap; Intelligence upgrades harder tasks. Routing is local and free.",
         type: "select",
         currentValue: DEFAULT_MT_MODEL_ROUTE_MODE,
         options: [
@@ -80,12 +80,22 @@ export function createMtModelProviderSnapshot(): ServerProvider {
   };
 }
 
+/**
+ * MT Auto is a harness-level router: the client offers it, but the SERVER has
+ * to understand the `mt` instance when the turn starts. A machine running an
+ * older build rejects it outright ("references unknown provider instance
+ * 'mt'"), so the entry is withheld unless that environment says it can route.
+ */
 export function withMtModelProvider(
   providers: ReadonlyArray<ServerProvider>,
+  options?: { readonly serverCanRoute?: boolean | undefined },
 ): ReadonlyArray<ServerProvider> {
   if (providers.some((provider) => isMtModelInstanceId(provider.instanceId))) {
     return providers;
   }
+  if (options?.serverCanRoute === false) {
+    return providers;
+  }
   const hasReadyBackend = providers.some(
     (provider) =>
       !isMtModelInstanceId(provider.instanceId) &&
@@ -101,10 +111,14 @@ export function withMtModelProvider(
 
 export function prependMtModelPickerEntry(
   entries: ReadonlyArray<ProviderInstanceEntry>,
+  options?: { readonly serverCanRoute?: boolean | undefined },
 ): ReadonlyArray<ProviderInstanceEntry> {
   if (entries.some((entry) => isMtModelInstanceId(entry.instanceId))) {
     return entries;
   }
+  if (options?.serverCanRoute === false) {
+    return entries;
+  }
   const hasReadyBackend = entries.some(
     (entry) =>
       !isMtModelInstanceId(entry.instanceId) &&
diff --git a/packages/contracts/src/environment.ts b/packages/contracts/src/environment.ts
index 7c74e09b4d22..7e07688c5ecf 100644
--- a/packages/contracts/src/environment.ts
+++ b/packages/contracts/src/environment.ts
@@ -78,6 +78,10 @@ export const ExecutionEnvironmentCapabilities = Schema.Struct({
   /** Server can start a fresh provider session and replay bounded thread
       context when a started thread switches to an incompatible provider. */
   providerHandoff: Schema.optionalKey(Schema.Boolean),
+  /** Server understands the `mt` router instance and picks a real backend per
+      turn. Absent on servers from before MT Auto, which reject the instance
+      outright - so clients must not offer it for those environments. */
+  modelRouting: Schema.optionalKey(Schema.Boolean),
   /** Server understands thread.message.correct. Absent on older servers, so
       clients hide the action instead of sending it. */
   threadMessageCorrection: Schema.optionalKey(Schema.Boolean),
diff --git a/packages/contracts/src/model.ts b/packages/contracts/src/model.ts
index 4a77aed88eb7..9edd98a8905c 100644
--- a/packages/contracts/src/model.ts
+++ b/packages/contracts/src/model.ts
@@ -136,8 +136,8 @@ const ANTIGRAVITY_DRIVER_KIND = ProviderDriverKind.make("antigravity");
 export const MT_MODEL_DRIVER_KIND = ProviderDriverKind.make("mt");
 export const MT_MODEL_INSTANCE_ID = ProviderInstanceId.make("mt");
 export const MT_MODEL_SLUG = "mt-auto";
-export const MT_MODEL_DISPLAY_NAME = "MT Model";
-export const MT_MODEL_PROVIDER_LABEL = "MT Code";
+export const MT_MODEL_DISPLAY_NAME = "MT Auto";
+export const MT_MODEL_PROVIDER_LABEL = "Munim";
 export const MT_MODEL_ROUTE_MODE_OPTION_ID = "routeMode";
 export const MT_MODEL_ROUTE_MODES = ["cost", "balance", "intelligence"] as const;
 export type MtModelRouteMode = (typeof MT_MODEL_ROUTE_MODES)[number];
diff --git a/packages/shared/src/mtModelRouter.ts b/packages/shared/src/mtModelRouter.ts
index fe74e9652c82..7bf0d48116d4 100644
--- a/packages/shared/src/mtModelRouter.ts
+++ b/packages/shared/src/mtModelRouter.ts
@@ -1,5 +1,5 @@
 /**
- * MT Model router — local analog of Cursor Auto / Cursor Router.
+ * MT Auto router — local analog of Cursor Auto / Cursor Router.
  *
  * Cursor trains Compass on hundreds of thousands of live turns. We score each
  * turn locally (same $0 model as T3 Code: no cloud classifier). The resolved
@@ -408,7 +408,7 @@ function describeRoute(
   if (classification.source === "cloudflare") {
     parts.push("cloudflare");
   }
-  return `MT Model → ${candidate.model} (${parts.join(", ")})`;
+  return `MT Auto → ${candidate.model} (${parts.join(", ")})`;
 }
 
 function unwrapClassificationRecord(input: unknown): Record<string, unknown> | null {