diff --git a/scripts/conductor-scripts.test.mjs b/scripts/conductor-scripts.test.mjs
index 3e83887b..d33fa73a 100644
--- a/scripts/conductor-scripts.test.mjs
+++ b/scripts/conductor-scripts.test.mjs
@@ -32,11 +32,11 @@ describe('Conductor workspace scripts', () => {
     assert.doesNotMatch(setupScript, /scripts\/conductor\//);
   });
 
-  it('links private agent overlays when KAELIO_SKILLS_ROOT is set', async () => {
+  it('links private agent overlays when KTX_AGENT_OVERLAYS_ROOT is set', async () => {
     const workspaceScript = await readText('scripts/conductor-setup.sh');
 
-    assert.match(workspaceScript, /KAELIO_SKILLS_ROOT/);
-    assert.match(workspaceScript, /ln -s "\$\{KAELIO_SKILLS_ROOT\}\/\.agents" \.agents/);
+    assert.match(workspaceScript, /KTX_AGENT_OVERLAYS_ROOT/);
+    assert.match(workspaceScript, /ln -s "\$\{KTX_AGENT_OVERLAYS_ROOT\}\/\.agents" \.agents/);
   });
 
   it('runs the KTX daemon on the documented fixed local port', async () => {
diff --git a/scripts/conductor-setup.sh b/scripts/conductor-setup.sh
index ee0271c4..3bb40b40 100755
--- a/scripts/conductor-setup.sh
+++ b/scripts/conductor-setup.sh
@@ -83,7 +83,7 @@ resolve_uv_for_project() {
 }
 
 link_agent_overlays() {
-  if [ -z "${KAELIO_SKILLS_ROOT:-}" ] || [ ! -d "${KAELIO_SKILLS_ROOT}/.agents" ]; then
+  if [ -z "${KTX_AGENT_OVERLAYS_ROOT:-}" ] || [ ! -d "${KTX_AGENT_OVERLAYS_ROOT}/.agents" ]; then
     return 0
   fi
 
@@ -96,7 +96,7 @@ link_agent_overlays() {
     return 0
   fi
 
-  ln -s "${KAELIO_SKILLS_ROOT}/.agents" .agents
+  ln -s "${KTX_AGENT_OVERLAYS_ROOT}/.agents" .agents
 }
 
 echo "=== Conductor KTX workspace setup ==="