diff --git a/browsers/file-io.mdx b/browsers/file-io.mdx
index 9fbcd26..cb5fbab 100644
--- a/browsers/file-io.mdx
+++ b/browsers/file-io.mdx
@@ -246,25 +246,131 @@ if __name__ == "__main__":
 
 </CodeGroup>
 
-### Stagehand v3
-
-When using Stagehand with Kernel browsers, you need to configure the download behavior in the `localBrowserLaunchOptions`:
-
-```typescript
-const stagehand = new Stagehand({
-  env: "LOCAL",
-  verbose: 1,
-  localBrowserLaunchOptions: {
-    cdpUrl: kernelBrowser.cdp_ws_url,
-    downloadsPath: DOWNLOAD_DIR, // Specify where downloads should be saved
-    acceptDownloads: true, // Enable downloads
-  },
+### Stagehand
+
+When using Stagehand with Kernel browsers, downloads are saved to the browser's filesystem and retrieved with Kernel's File I/O APIs. The setup differs by version (see the [Stagehand integration guide](/integrations/stagehand) for the full connection setup):
+
+- **v4** connects to the running browser, and a user-initiated download — e.g. clicking a download link — is saved to the browser's default download directory, `/home/kernel/Downloads`. No download-specific configuration is required.
+- **v3** sets the download directory via `localBrowserLaunchOptions` (`downloadsPath` + `acceptDownloads`).
+
+Here's a complete example for each version:
+
+<CodeGroup>
+```typescript Stagehand v4
+import { Stagehand, localBrowser } from "@browserbasehq/stagehand";
+import Kernel from "@onkernel/sdk";
+import fs from "fs";
+import { createReadStream } from "node:fs";
+import { dirname, join } from "node:path";
+import { fileURLToPath } from "node:url";
+
+// Kernel browsers save user-initiated downloads here by default.
+const DOWNLOAD_DIR = "/home/kernel/Downloads";
+
+// Mirror the Stagehand extension onto the running browser so localBrowser.connect can load it.
+const stagehandDist = dirname(fileURLToPath(import.meta.resolve("@browserbasehq/stagehand")));
+async function loadStagehandExtension(kernel: Kernel, sessionId: string) {
+    await kernel.browsers.fs.uploadZip(sessionId, {
+        dest_path: join(stagehandDist, "extension"),
+        zip_file: createReadStream(join(stagehandDist, "assets/stagehand-extension.zip")),
+    });
+}
+
+// Poll listFiles until a completed file appears (skip in-progress .crdownload files).
+async function waitForFile(
+    kernel: Kernel,
+    sessionId: string,
+    dir: string,
+    timeoutMs = 30_000
+) {
+    const start = Date.now();
+    while (Date.now() - start < timeoutMs) {
+        const files = await kernel.browsers.fs.listFiles(sessionId, { path: dir });
+        const done = files.find((f) => !f.name.endsWith(".crdownload"));
+        if (done) {
+            return done;
+        }
+        await new Promise((r) => setTimeout(r, 500));
+    }
+    throw new Error(`No files found in ${dir} after ${timeoutMs}ms`);
+}
+
+async function main() {
+    const kernel = new Kernel();
+
+    console.log("Creating browser via Kernel...");
+    const kernelBrowser = await kernel.browsers.create({ stealth: true });
+
+    console.log(`Kernel Browser Session Started`);
+    console.log(`Session ID: ${kernelBrowser.session_id}`);
+    console.log(`Watch live: ${kernelBrowser.browser_live_view_url}`);
+
+    let stagehand: Awaited<ReturnType<typeof Stagehand.create>> | undefined;
+    let browser: Awaited<ReturnType<typeof localBrowser.connect>> | undefined;
+    try {
+        await loadStagehandExtension(kernel, kernelBrowser.session_id);
+        browser = await localBrowser.connect({ cdpUrl: kernelBrowser.cdp_ws_url });
+        stagehand = await Stagehand.create({
+            browser,
+            model: {
+                modelName: "anthropic/claude-sonnet-4-5",
+                apiKey: process.env.MODEL_API_KEY,
+            },
+        });
+
+        const page = await browser.context.activePage();
+        if (!page) throw new Error("No active page in the Kernel browser");
+        await page.goto("https://browser-tests-alpha.vercel.app/api/download-test");
+
+        // Use Stagehand to click the download button
+        await stagehand.act("Click the download file link");
+        console.log("Download triggered");
+
+        // Wait for the file to be fully available via Kernel's File I/O APIs
+        console.log("Waiting for file to appear...");
+        const downloadedFile = await waitForFile(
+            kernel,
+            kernelBrowser.session_id,
+            DOWNLOAD_DIR
+        );
+        console.log(`File found: ${downloadedFile.name}`);
+
+        const remotePath = `${DOWNLOAD_DIR}/${downloadedFile.name}`;
+        console.log(`Reading file from: ${remotePath}`);
+
+        // Read the file from the Kernel browser's filesystem
+        const resp = await kernel.browsers.fs.readFile(kernelBrowser.session_id, {
+            path: remotePath,
+        });
+
+        // Save to local filesystem
+        const bytes = await resp.bytes();
+        fs.mkdirSync("downloads", { recursive: true });
+        const localPath = `downloads/${downloadedFile.name}`;
+        fs.writeFileSync(localPath, bytes);
+        console.log(`Saved to ${localPath}`);
+    } finally {
+        // Nested so a rejected close() never skips deleting the Kernel browser.
+        try {
+            await stagehand?.close();
+        } finally {
+            try {
+                await browser?.close();
+            } finally {
+                await kernel.browsers.deleteByID(kernelBrowser.session_id);
+            }
+        }
+    }
+    console.log("Browser session closed");
+}
+
+main().catch((err) => {
+    console.error(err);
+    process.exit(1);
 });
 ```
 
-Here's a complete example:
-
-```typescript
+```typescript Stagehand v3
 import { Stagehand } from "@browserbasehq/stagehand";
 import Kernel from "@onkernel/sdk";
 import fs from "fs";
@@ -307,8 +413,8 @@ async function main() {
         verbose: 1,
         localBrowserLaunchOptions: {
             cdpUrl: kernelBrowser.cdp_ws_url,
-            downloadsPath: DOWNLOAD_DIR,
-            acceptDownloads: true,
+            downloadsPath: DOWNLOAD_DIR, // Specify where downloads should be saved
+            acceptDownloads: true, // Enable downloads
         },
     });
 
@@ -357,6 +463,7 @@ main().catch((err) => {
     process.exit(1);
 });
 ```
+</CodeGroup>
 
 ### Browser Use
 
diff --git a/integrations/stagehand.mdx b/integrations/stagehand.mdx
index d633f02..8789124 100644
--- a/integrations/stagehand.mdx
+++ b/integrations/stagehand.mdx
@@ -5,26 +5,156 @@ title: "Stagehand"
 [Stagehand](https://github.com/browserbase/stagehand) is an open source AI browser automation framework. It lets developers choose what to write in code vs. natural language. By integrating with Kernel, you can run Stagehand automations with cloud-hosted browsers.
 
 <Note>
-This guide is compatible with Stagehand SDK v3. If you're using an earlier version, please refer to the [Stagehand migration guide](https://docs.stagehand.dev/v3/migrations/v2) or upgrade to v3.
+This guide covers both Stagehand SDK v4 and v3. v4 runs as a Chrome extension alongside the browser rather than driving it purely over CDP, so a remote Kernel browser needs the extension loaded into it — the version tabs below show each setup. To move between versions, see the [Stagehand migration guide](https://docs.stagehand.dev). The CLI template uses v4.
 </Note>
 
-## Adding Kernel to existing Stagehand implementations
+## Quick start with the Stagehand template
 
-If you already have a Stagehand (v3) implementation, you can easily switch to using Kernel's cloud browsers by updating your browser configuration.
+The fastest way to run Stagehand on Kernel is our app template, which comes pre-wired for v4:
 
-### 1. Install the Kernel SDK
+```bash
+kernel create --name my-stagehand-app --language typescript --template stagehand
+```
+
+This scaffolds a self-contained app with two files:
+
+- `index.ts` — the automation (searches a startup on Y Combinator and extracts its team size).
+- `stagehand-extension.ts` — a helper that loads the Stagehand extension onto the Kernel browser.
+
+Set a provider-prefixed `MODEL` and its API key in a `.env` file:
+
+```bash .env
+# MODEL is provider-prefixed, e.g. anthropic/claude-sonnet-4-5, openai/gpt-4.1, google/gemini-2.5-flash
+MODEL=anthropic/claude-sonnet-4-5
+MODEL_API_KEY=your-api-key
+```
+
+Then deploy and invoke:
+
+```bash
+kernel deploy index.ts --env-file .env
+kernel invoke ts-stagehand teamsize-task --payload '{"company": "kernel"}'
+# → {"teamSize":"6"}
+```
+
+See the [deploy](/apps/deploy) and [invoke](/apps/invoke) guides for more.
+
+## Adding Kernel to an existing Stagehand project
+
+If you already have a Stagehand implementation, switch it to Kernel's cloud browsers by updating your browser setup. The steps differ between v4 and v3 — pick your version below.
+
+<Tabs>
+  <Tab title="Stagehand v4">
+
+**1. Install the Kernel SDK**
+
+```bash
+npm install @onkernel/sdk
+```
+
+**2. Load the Stagehand extension onto the Kernel browser**
+
+Stagehand v4 runs as a Chrome extension. When `localBrowser.connect` is called without an `extensionId`, Stagehand loads the extension into the running browser over CDP (`Extensions.loadUnpacked`), reading it from a path on the **browser's** filesystem. Mirror the extension — shipped inside the `@browserbasehq/stagehand` package — onto the running Kernel browser at that exact path first:
+
+```typescript
+import { Kernel } from "@onkernel/sdk";
+import { createReadStream } from "node:fs";
+import { dirname, join } from "node:path";
+import { fileURLToPath } from "node:url";
+
+const stagehandDist = dirname(fileURLToPath(import.meta.resolve("@browserbasehq/stagehand")));
+const STAGEHAND_EXTENSION_ZIP = join(stagehandDist, "assets/stagehand-extension.zip");
+const STAGEHAND_EXTENSION_DIR = join(stagehandDist, "extension");
+
+async function loadStagehandExtension(kernel: Kernel, sessionId: string): Promise<void> {
+  await kernel.browsers.fs.uploadZip(sessionId, {
+    dest_path: STAGEHAND_EXTENSION_DIR,
+    zip_file: createReadStream(STAGEHAND_EXTENSION_ZIP),
+  });
+}
+```
+
+**3. Create a browser and connect**
+
+Create a Kernel browser, load the extension, then connect Stagehand to its CDP URL:
+
+```typescript
+import { Stagehand, localBrowser } from "@browserbasehq/stagehand";
+import Kernel from "@onkernel/sdk";
+
+const kernel = new Kernel();
+
+const kernelBrowser = await kernel.browsers.create({ stealth: true });
+console.log("Live view url:", kernelBrowser.browser_live_view_url);
+
+await loadStagehandExtension(kernel, kernelBrowser.session_id);
+
+// With no `extensionId`, Stagehand loads the extension over CDP.
+const browser = await localBrowser.connect({ cdpUrl: kernelBrowser.cdp_ws_url });
+
+const stagehand = await Stagehand.create({
+  browser,
+  model: {
+    modelName: "anthropic/claude-sonnet-4-5",
+    apiKey: process.env.MODEL_API_KEY,
+  },
+});
+```
+
+**4. Use your Stagehand automation**
+
+Drive the page with Stagehand's primitives. Note the v4 API: page access is async (`activePage()`), and `extract` returns its result under `data`:
+
+```typescript
+import { z } from "zod";
+
+const page = await browser.context.activePage();
+if (!page) throw new Error("No active page in the Kernel browser");
+await page.goto("https://www.ycombinator.com/companies");
+
+await stagehand.act("Type in kernel into the search box");
+await stagehand.act("Click on the first search result");
+
+const { data } = await stagehand.extract(
+  "Extract the team size (number of employees) shown on this Y Combinator company page.",
+  z.object({ teamSize: z.string() }),
+);
+
+console.log("Team size:", data.teamSize);
+```
+
+**5. Clean up**
+
+Stagehand v4 only closes browsers it launched, so close the connection and delete the Kernel browser yourself. Nest the cleanup so a failed `close()` never skips deleting the browser:
+
+```typescript
+try {
+  await stagehand.close();
+} finally {
+  try {
+    await browser.close();
+  } finally {
+    await kernel.browsers.deleteByID(kernelBrowser.session_id);
+  }
+}
+```
+
+  </Tab>
+  <Tab title="Stagehand v3">
+
+**1. Install the Kernel SDK**
 
 ```bash
 npm install @onkernel/sdk
 ```
 
-### 2. Initialize Kernel and create a browser
+**2. Initialize Kernel and create a browser**
 
 Import the libraries and create a cloud browser session:
 
 ```typescript
 import { Stagehand } from "@browserbasehq/stagehand";
-import Kernel from '@onkernel/sdk';
+import Kernel from "@onkernel/sdk";
 import { z } from "zod";
 
 const kernel = new Kernel();
@@ -34,7 +164,7 @@ const kernelBrowser = await kernel.browsers.create({ stealth: true });
 console.log("Live view url: ", kernelBrowser.browser_live_view_url);
 ```
 
-### 3. Update your browser configuration
+**3. Update your browser configuration**
 
 Replace your existing browser setup to use Kernel's CDP URL:
 
@@ -53,7 +183,7 @@ const stagehand = new Stagehand({
 await stagehand.init();
 ```
 
-### 4. Use your Stagehand automation
+**4. Use your Stagehand automation**
 
 Use Stagehand's page methods with the Kernel-powered browser:
 
@@ -74,15 +204,8 @@ await stagehand.close();
 await kernel.browsers.deleteByID(kernelBrowser.session_id);
 ```
 
-## Quick setup with our Stagehand example app
-
-Alternatively, you can use our Kernel app template that includes a pre-configured Stagehand integration:
-
-```bash
-kernel create --name my-stagehand-app --language typescript --template stagehand
-```
-
-Then follow the [deploy](/apps/deploy) and [invoke](/apps/invoke) guides to deploy and run your Stagehand automation on Kernel's infrastructure.
+  </Tab>
+</Tabs>
 
 ## Benefits of using Kernel with Stagehand
 
diff --git a/reference/cli/create.mdx b/reference/cli/create.mdx
index 32ffd15..bde2127 100644
--- a/reference/cli/create.mdx
+++ b/reference/cli/create.mdx
@@ -22,7 +22,7 @@ Create a new Kernel application from a template. The CLI provides an interactive
 - **`openai-computer-use`** — OpenAI Computer Using Agent (CUA)
 - **`gemini-computer-use`** — Google Gemini computer use agent
 - **`claude-agent-sdk`** — Claude Agent SDK browser automation agent
-- **`stagehand`** — [Stagehand](https://github.com/browserbase/stagehand) v3 SDK integration
+- **`stagehand`** — [Stagehand](https://github.com/browserbase/stagehand) v4 SDK integration
 - **`magnitude`** — [Magnitude](https://github.com/magnitude-labs/magnitude) SDK integration
 - **`tzafon`** — Tzafon Northstar CUA Fast computer use agent
 - **`yutori`** — Yutori n1.5 computer use agent