diff --git a/docs/reference/session-management-compaction.md b/docs/reference/session-management-compaction.md
index 7529c103aa00..d279de436993 100644
--- a/docs/reference/session-management-compaction.md
+++ b/docs/reference/session-management-compaction.md
@@ -362,8 +362,8 @@ OpenClaw also enforces a safety floor for embedded runs:
 
 Why: leave enough headroom for multi-turn "housekeeping" (like memory writes) before compaction becomes unavoidable.
 
-Implementation: `ensureAgentCompactionReserveTokens()` in `src/agents/agent-settings.ts`
-(called from `src/agents/embedded-agent-runner.ts`).
+Implementation: `applyAgentCompactionSettingsFromConfig()` in `src/agents/agent-settings.ts`
+(called from embedded-runner turn and compaction setup paths).
 
 ---
 
diff --git a/src/agents/agent-settings.ts b/src/agents/agent-settings.ts
index 871d2b90dcc0..9c822fca2181 100644
--- a/src/agents/agent-settings.ts
+++ b/src/agents/agent-settings.ts
@@ -20,30 +20,6 @@ type AgentSettingsManagerLike = {
   setCompactionEnabled?: (enabled: boolean) => void;
 };
 
-/**
- * Ensures the compaction reserve tokens are at least the specified minimum.
- * Note: This function is not context-aware and uses an uncapped floor.
- * If called for small-context models without threading `contextTokenBudget`,
- * it may re-introduce context overflow issues.
- */
-export function ensureAgentCompactionReserveTokens(params: {
-  settingsManager: AgentSettingsManagerLike;
-  minReserveTokens?: number;
-}): { didOverride: boolean; reserveTokens: number } {
-  const minReserveTokens = params.minReserveTokens ?? DEFAULT_AGENT_COMPACTION_RESERVE_TOKENS_FLOOR;
-  const current = params.settingsManager.getCompactionReserveTokens();
-
-  if (current >= minReserveTokens) {
-    return { didOverride: false, reserveTokens: current };
-  }
-
-  params.settingsManager.applyOverrides({
-    compaction: { reserveTokens: minReserveTokens },
-  });
-
-  return { didOverride: true, reserveTokens: minReserveTokens };
-}
-
 /** Resolves the configured reserve-token floor for agent compaction. */
 export function resolveCompactionReserveTokensFloor(cfg?: OpenClawConfig): number {
   const raw = cfg?.agents?.defaults?.compaction?.reserveTokensFloor;
diff --git a/src/agents/embedded-agent-runner/compact.hooks.harness.ts b/src/agents/embedded-agent-runner/compact.hooks.harness.ts
index 36dd36bcc144..f9363dba5933 100644
--- a/src/agents/embedded-agent-runner/compact.hooks.harness.ts
+++ b/src/agents/embedded-agent-runner/compact.hooks.harness.ts
@@ -528,7 +528,6 @@ export async function loadCompactHooksHarness(): Promise<{
   vi.doMock("../agent-settings.js", () => ({
     applyAgentAutoCompactionGuard: vi.fn(() => ({ supported: true, disabled: false })),
     applyAgentCompactionSettingsFromConfig: applyAgentCompactionSettingsFromConfigMock,
-    ensureAgentCompactionReserveTokens: vi.fn(),
     isSilentOverflowProneModel: vi.fn(() => false),
     resolveCompactionReserveTokensFloor: vi.fn(() => 0),
   }));
diff --git a/src/agents/embedded-agent-runner/extensions.ts b/src/agents/embedded-agent-runner/extensions.ts
index f7e5593123ec..d5e900205362 100644
--- a/src/agents/embedded-agent-runner/extensions.ts
+++ b/src/agents/embedded-agent-runner/extensions.ts
@@ -10,10 +10,7 @@ import contextPruningExtension from "../agent-hooks/context-pruning.js";
 import { setContextPruningRuntime } from "../agent-hooks/context-pruning/runtime.js";
 import { computeEffectiveSettings } from "../agent-hooks/context-pruning/settings.js";
 import { makeToolPrunablePredicate } from "../agent-hooks/context-pruning/tools.js";
-import {
-  ensureAgentCompactionReserveTokens,
-  resolveEffectiveCompactionMode,
-} from "../agent-settings.js";
+import { resolveEffectiveCompactionMode } from "../agent-settings.js";
 import {
   finalizeToolTerminalPresentation,
   peekAdjustedParamsForToolCall,
@@ -209,5 +206,3 @@ export function buildEmbeddedExtensionFactories(params: {
   factories.push(buildAgentToolResultMiddlewareFactory(params.sessionManager, params.runId));
   return factories;
 }
-
-export { ensureAgentCompactionReserveTokens };