diff --git a/contributing/samples/local_environment_skill/README.md b/contributing/samples/local_environment_skill/README.md
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+# Local Environment Skill Sample
+
+This sample demonstrates how to use the `LocalEnvironment` with the `EnvironmentToolset` to allow an agent to manually discover and load skills from the environment, rather than using the pre-configured `SkillToolset`.
+
+## Description
+
+The agent is configured with the `EnvironmentToolset` and is initialized with a `LocalEnvironment` pointing to the agent's directory.
+Instead of having skills pre-loaded, the agent uses system instructions that guide it to search for skills in the `skills/` folder and load them by reading their `SKILL.md` files using the `ReadFile` tool.
+
+This demonstrates a "manual skill loading" pattern where the agent can acquire new capabilities dynamically by reading instructions from the environment.
+
+## Sample Usage
+
+You can interact with the agent by providing prompts that require a specific skill (like weather).
+
+### Example Prompt
+
+> "Can you check the weather in Sunnyvale?"
+
+### Expected Behavior
+
+1.  **Find Skill**: The agent uses the `Execute` tool to search for all available skills by running `find skills -name SKILL.md`.
+2.  **Load Skill**: The agent identifies the relevant skill and uses the `ReadFile` tool to read its `SKILL.md` file.
+3.  **Execute Skill**: The agent follows the instructions in the skill file (e.g., reading references or running scripts) to answer the user's request.
diff --git a/contributing/samples/local_environment_skill/__init__.py b/contributing/samples/local_environment_skill/__init__.py
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+# Copyright 2026 Google LLC
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+from . import agent
diff --git a/contributing/samples/local_environment_skill/agent.py b/contributing/samples/local_environment_skill/agent.py
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+# Copyright 2026 Google LLC
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+import pathlib
+
+from google.adk import Agent
+from google.adk.environment import LocalEnvironment
+from google.adk.tools.base_tool import BaseTool
+from google.adk.tools.environment import EnvironmentToolset
+from google.genai import types
+
+
+class GetTimezoneTool(BaseTool):
+  """A tool to get the timezone for a given location."""
+
+  def __init__(self):
+    super().__init__(
+        name="get_timezone",
+        description="Returns the timezone for a given location.",
+    )
+
+  def _get_declaration(self) -> types.FunctionDeclaration | None:
+    return types.FunctionDeclaration(
+        name=self.name,
+        description=self.description,
+        parameters_json_schema={
+            "type": "object",
+            "properties": {
+                "location": {
+                    "type": "string",
+                    "description": "The location to get the timezone for.",
+                },
+            },
+            "required": ["location"],
+        },
+    )
+
+  async def run_async(self, *, args: dict, tool_context) -> str:
+    return f"The timezone for {args['location']} is UTC+00:00."
+
+
+def get_wind_speed(location: str) -> str:
+  """Returns the current wind speed for a given location."""
+  return f"The wind speed in {location} is 10 mph."
+
+
+BASE_INSTRUCTION = (
+    "You are a helpful AI assistant that can use the local environment to"
+    " execute commands and file I/O."
+)
+
+SKILL_USAGE_INSTRUCTION = """\
+[SKILLS ACCESS]
+You have access to specialized skills stored in the environment's `skills/` folder.
+Each skill is a folder containing a `SKILL.md` file with instructions.
+
+[MANDATORY PROCEDURE]
+Before declaring that you cannot perform a task or answer a question (especially for domain-specific queries like weather), you MUST:
+1. Use the `Execute` tool to search for all available skills by running: `find skills -name SKILL.md`
+2. Review the list of found skills to see if any are relevant to the user's request.
+3. If a relevant skill is found, use the `ReadFile` tool to read its `SKILL.md` file.
+4. Follow the instructions in that file to complete the request.
+   *CRITICAL NOTE ON PATHS:* All file and script paths mentioned inside a `SKILL.md` file (e.g., `references/...` or `scripts/...`) are RELATIVE to that specific skill's folder. You MUST resolve them by prepending the skill's folder path (e.g., if the skill is at `skills/weather-skill/`, you must read `skills/weather-skill/references/weather_info.md`).
+
+Failure to check the `skills/` directory before stating you cannot help is unacceptable.\
+"""
+
+
+root_agent = Agent(
+    model="gemini-2.5-pro",
+    name="local_environment_skill_agent",
+    description=(
+        "An agent that uses local environment tools to load and use skills."
+    ),
+    instruction=f"{BASE_INSTRUCTION}\n\n{SKILL_USAGE_INSTRUCTION}",
+    tools=[
+        EnvironmentToolset(
+            environment=LocalEnvironment(
+                working_dir=pathlib.Path(__file__).parent
+            ),
+        ),
+        GetTimezoneTool(),
+        get_wind_speed,
+    ],
+)
diff --git a/contributing/samples/local_environment_skill/skills/weather-skill/SKILL.md b/contributing/samples/local_environment_skill/skills/weather-skill/SKILL.md
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+---
+name: weather-skill
+description: A skill that provides weather information based on reference data.
+metadata:
+  adk_additional_tools:
+    - get_wind_speed
+---
+
+Step 1: Check 'references/weather_info.md' for the current weather.
+Step 2: If humidity is requested, use run 'scripts/get_humidity.py' with the `location` argument.
+Step 3: If wind speed is requested, use the `get_wind_speed` tool.
+Step 4: Provide the update to the user.
diff --git a/contributing/samples/local_environment_skill/skills/weather-skill/references/weather_info.md b/contributing/samples/local_environment_skill/skills/weather-skill/references/weather_info.md
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+# Weather Information
+
+- **Location:** San Francisco, CA
+- **Condition:** Sunny ☀️
+- **Temperature:** 72°F (22°C)
+- **Forecast:** Clear skies all day.
+
+- **Location:** Sunnyvale, CA
+- **Condition:** Sunny ☀️
+- **Temperature:** 75°F (24°C)
+- **Forecast:** Warm and sunny.
diff --git a/contributing/samples/local_environment_skill/skills/weather-skill/scripts/get_humidity.py b/contributing/samples/local_environment_skill/skills/weather-skill/scripts/get_humidity.py
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+# Copyright 2026 Google LLC
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+import argparse
+
+
+def get_humidity(location: str) -> str:
+  """Fetch live humidity for a given location. (Simulated)"""
+  print(f"Fetching live humidity for {location}...")
+  return "45% (Simulated)"
+
+
+if __name__ == "__main__":
+  parser = argparse.ArgumentParser()
+  parser.add_argument("--location", type=str, default="Mountain View")
+  args = parser.parse_args()
+
+  print(get_humidity(args.location))