diff --git a/src/agents/pi-embedded-subscribe.handlers.compaction.ts b/src/agents/pi-embedded-subscribe.handlers.compaction.ts
new file mode 100644
index 00000000000..fa7c46b8bdd
--- /dev/null
+++ b/src/agents/pi-embedded-subscribe.handlers.compaction.ts
@@ -0,0 +1,77 @@
+import type { AgentEvent } from "@mariozechner/pi-agent-core";
+import type { EmbeddedPiSubscribeContext } from "./pi-embedded-subscribe.handlers.types.js";
+import { emitAgentEvent } from "../infra/agent-events.js";
+import { getGlobalHookRunner } from "../plugins/hook-runner-global.js";
+
+export function handleAutoCompactionStart(ctx: EmbeddedPiSubscribeContext) {
+  ctx.state.compactionInFlight = true;
+  ctx.incrementCompactionCount();
+  ctx.ensureCompactionPromise();
+  ctx.log.debug(`embedded run compaction start: runId=${ctx.params.runId}`);
+  emitAgentEvent({
+    runId: ctx.params.runId,
+    stream: "compaction",
+    data: { phase: "start" },
+  });
+  void ctx.params.onAgentEvent?.({
+    stream: "compaction",
+    data: { phase: "start" },
+  });
+
+  // Run before_compaction plugin hook (fire-and-forget)
+  const hookRunner = getGlobalHookRunner();
+  if (hookRunner?.hasHooks("before_compaction")) {
+    void hookRunner
+      .runBeforeCompaction(
+        {
+          messageCount: ctx.params.session.messages?.length ?? 0,
+        },
+        {},
+      )
+      .catch((err) => {
+        ctx.log.warn(`before_compaction hook failed: ${String(err)}`);
+      });
+  }
+}
+
+export function handleAutoCompactionEnd(
+  ctx: EmbeddedPiSubscribeContext,
+  evt: AgentEvent & { willRetry?: unknown },
+) {
+  ctx.state.compactionInFlight = false;
+  const willRetry = Boolean(evt.willRetry);
+  if (willRetry) {
+    ctx.noteCompactionRetry();
+    ctx.resetForCompactionRetry();
+    ctx.log.debug(`embedded run compaction retry: runId=${ctx.params.runId}`);
+  } else {
+    ctx.maybeResolveCompactionWait();
+  }
+  emitAgentEvent({
+    runId: ctx.params.runId,
+    stream: "compaction",
+    data: { phase: "end", willRetry },
+  });
+  void ctx.params.onAgentEvent?.({
+    stream: "compaction",
+    data: { phase: "end", willRetry },
+  });
+
+  // Run after_compaction plugin hook (fire-and-forget)
+  if (!willRetry) {
+    const hookRunnerEnd = getGlobalHookRunner();
+    if (hookRunnerEnd?.hasHooks("after_compaction")) {
+      void hookRunnerEnd
+        .runAfterCompaction(
+          {
+            messageCount: ctx.params.session.messages?.length ?? 0,
+            compactedCount: ctx.getCompactionCount(),
+          },
+          {},
+        )
+        .catch((err) => {
+          ctx.log.warn(`after_compaction hook failed: ${String(err)}`);
+        });
+    }
+  }
+}
diff --git a/src/agents/pi-embedded-subscribe.handlers.lifecycle.ts b/src/agents/pi-embedded-subscribe.handlers.lifecycle.ts
index ffa1eeee98b..49dbd7367b0 100644
--- a/src/agents/pi-embedded-subscribe.handlers.lifecycle.ts
+++ b/src/agents/pi-embedded-subscribe.handlers.lifecycle.ts
@@ -2,10 +2,14 @@ import type { AgentEvent } from "@mariozechner/pi-agent-core";
 import type { EmbeddedPiSubscribeContext } from "./pi-embedded-subscribe.handlers.types.js";
 import { emitAgentEvent } from "../infra/agent-events.js";
 import { createInlineCodeState } from "../markdown/code-spans.js";
-import { getGlobalHookRunner } from "../plugins/hook-runner-global.js";
 import { formatAssistantErrorText } from "./pi-embedded-helpers.js";
 import { isAssistantMessage } from "./pi-embedded-utils.js";
 
+export {
+  handleAutoCompactionEnd,
+  handleAutoCompactionStart,
+} from "./pi-embedded-subscribe.handlers.compaction.js";
+
 export function handleAgentStart(ctx: EmbeddedPiSubscribeContext) {
   ctx.log.debug(`embedded run agent start: runId=${ctx.params.runId}`);
   emitAgentEvent({
@@ -22,79 +26,6 @@ export function handleAgentStart(ctx: EmbeddedPiSubscribeContext) {
   });
 }
 
-export function handleAutoCompactionStart(ctx: EmbeddedPiSubscribeContext) {
-  ctx.state.compactionInFlight = true;
-  ctx.incrementCompactionCount();
-  ctx.ensureCompactionPromise();
-  ctx.log.debug(`embedded run compaction start: runId=${ctx.params.runId}`);
-  emitAgentEvent({
-    runId: ctx.params.runId,
-    stream: "compaction",
-    data: { phase: "start" },
-  });
-  void ctx.params.onAgentEvent?.({
-    stream: "compaction",
-    data: { phase: "start" },
-  });
-
-  // Run before_compaction plugin hook (fire-and-forget)
-  const hookRunner = getGlobalHookRunner();
-  if (hookRunner?.hasHooks("before_compaction")) {
-    void hookRunner
-      .runBeforeCompaction(
-        {
-          messageCount: ctx.params.session.messages?.length ?? 0,
-        },
-        {},
-      )
-      .catch((err) => {
-        ctx.log.warn(`before_compaction hook failed: ${String(err)}`);
-      });
-  }
-}
-
-export function handleAutoCompactionEnd(
-  ctx: EmbeddedPiSubscribeContext,
-  evt: AgentEvent & { willRetry?: unknown },
-) {
-  ctx.state.compactionInFlight = false;
-  const willRetry = Boolean(evt.willRetry);
-  if (willRetry) {
-    ctx.noteCompactionRetry();
-    ctx.resetForCompactionRetry();
-    ctx.log.debug(`embedded run compaction retry: runId=${ctx.params.runId}`);
-  } else {
-    ctx.maybeResolveCompactionWait();
-  }
-  emitAgentEvent({
-    runId: ctx.params.runId,
-    stream: "compaction",
-    data: { phase: "end", willRetry },
-  });
-  void ctx.params.onAgentEvent?.({
-    stream: "compaction",
-    data: { phase: "end", willRetry },
-  });
-
-  // Run after_compaction plugin hook (fire-and-forget)
-  if (!willRetry) {
-    const hookRunnerEnd = getGlobalHookRunner();
-    if (hookRunnerEnd?.hasHooks("after_compaction")) {
-      void hookRunnerEnd
-        .runAfterCompaction(
-          {
-            messageCount: ctx.params.session.messages?.length ?? 0,
-            compactedCount: ctx.getCompactionCount(),
-          },
-          {},
-        )
-        .catch((err) => {
-          ctx.log.warn(`after_compaction hook failed: ${String(err)}`);
-        });
-    }
-  }
-}
-
 export function handleAgentEnd(ctx: EmbeddedPiSubscribeContext) {
   const lastAssistant = ctx.state.lastAssistant;
   const isError = isAssistantMessage(lastAssistant) && lastAssistant.stopReason === "error";
diff --git a/src/plugins/wired-hooks-compaction.test.ts b/src/plugins/wired-hooks-compaction.test.ts
index a298f80d154..fc5b6b83f89 100644
--- a/src/plugins/wired-hooks-compaction.test.ts
+++ b/src/plugins/wired-hooks-compaction.test.ts
@@ -33,7 +33,7 @@ describe("compaction hook wiring", () => {
     hookMocks.runner.hasHooks.mockReturnValue(true);
 
     const { handleAutoCompactionStart } =
-      await import("../agents/pi-embedded-subscribe.handlers.lifecycle.js");
+      await import("../agents/pi-embedded-subscribe.handlers.compaction.js");
 
     const ctx = {
       params: { runId: "r1", session: { messages: [1, 2, 3] } },
@@ -45,9 +45,7 @@ describe("compaction hook wiring", () => {
 
     handleAutoCompactionStart(ctx as never);
 
-    await vi.waitFor(() => {
-      expect(hookMocks.runner.runBeforeCompaction).toHaveBeenCalledTimes(1);
-    });
+    expect(hookMocks.runner.runBeforeCompaction).toHaveBeenCalledTimes(1);
 
     const [event] = hookMocks.runner.runBeforeCompaction.mock.calls[0];
     expect(event.messageCount).toBe(3);
@@ -57,7 +55,7 @@ describe("compaction hook wiring", () => {
     hookMocks.runner.hasHooks.mockReturnValue(true);
 
     const { handleAutoCompactionEnd } =
-      await import("../agents/pi-embedded-subscribe.handlers.lifecycle.js");
+      await import("../agents/pi-embedded-subscribe.handlers.compaction.js");
 
     const ctx = {
       params: { runId: "r2", session: { messages: [1, 2] } },
@@ -75,9 +73,7 @@ describe("compaction hook wiring", () => {
       } as never,
     );
 
-    await vi.waitFor(() => {
-      expect(hookMocks.runner.runAfterCompaction).toHaveBeenCalledTimes(1);
-    });
+    expect(hookMocks.runner.runAfterCompaction).toHaveBeenCalledTimes(1);
 
     const [event] = hookMocks.runner.runAfterCompaction.mock.calls[0];
     expect(event.messageCount).toBe(2);
@@ -88,7 +84,7 @@ describe("compaction hook wiring", () => {
     hookMocks.runner.hasHooks.mockReturnValue(true);
 
     const { handleAutoCompactionEnd } =
-      await import("../agents/pi-embedded-subscribe.handlers.lifecycle.js");
+      await import("../agents/pi-embedded-subscribe.handlers.compaction.js");
 
     const ctx = {
       params: { runId: "r3", session: { messages: [] } },
@@ -107,7 +103,6 @@ describe("compaction hook wiring", () => {
       } as never,
     );
 
-    await new Promise((r) => setTimeout(r, 50));
     expect(hookMocks.runner.runAfterCompaction).not.toHaveBeenCalled();
   });
 });