diff --git a/crates/goose-api/Cargo.toml b/crates/goose-api/Cargo.toml
index 1caa2ffe..7276663e 100644
--- a/crates/goose-api/Cargo.toml
+++ b/crates/goose-api/Cargo.toml
@@ -21,4 +21,5 @@ futures = "0.3"
 futures-util = "0.3"
 # For session IDs
 uuid = { version = "1", features = ["serde", "v4"] }
+dashmap = "6"
  # Add dynamic-library for extension loading
diff --git a/crates/goose-api/src/api_sessions.rs b/crates/goose-api/src/api_sessions.rs
new file mode 100644
index 00000000..3c259ade
--- /dev/null
+++ b/crates/goose-api/src/api_sessions.rs
@@ -0,0 +1,45 @@
+use dashmap::DashMap;
+use goose::agents::Agent;
+use std::sync::{atomic::{AtomicU64, Ordering}, Arc, LazyLock};
+use tokio::sync::Mutex;
+use uuid::Uuid;
+use std::time::{Duration, SystemTime, UNIX_EPOCH};
+
+pub struct ApiSession {
+    pub agent: Arc<Mutex<Agent>>, // agent for this session
+    last_active: AtomicU64,
+}
+
+impl ApiSession {
+    pub fn new(agent: Agent) -> Self {
+        Self {
+            agent: Arc::new(Mutex::new(agent)),
+            last_active: AtomicU64::new(current_timestamp()),
+        }
+    }
+
+    pub fn touch(&self) {
+        self.last_active.store(current_timestamp(), Ordering::Relaxed);
+    }
+
+    pub fn is_expired(&self, ttl: Duration) -> bool {
+        current_timestamp() - self.last_active.load(Ordering::Relaxed) > ttl.as_secs()
+    }
+}
+
+fn current_timestamp() -> u64 {
+    SystemTime::now()
+        .duration_since(UNIX_EPOCH)
+        .unwrap_or_default()
+        .as_secs()
+}
+
+pub static SESSIONS: LazyLock<DashMap<Uuid, ApiSession>> = LazyLock::new(DashMap::new);
+
+pub const SESSION_TIMEOUT_SECS: u64 = 3600;
+
+pub fn cleanup_expired_sessions() {
+    let ttl = Duration::from_secs(SESSION_TIMEOUT_SECS);
+    SESSIONS.retain(|_, sess| !sess.is_expired(ttl));
+}
+
diff --git a/crates/goose-api/src/handlers.rs b/crates/goose-api/src/handlers.rs
index 096e7193..e84de7c4 100644
--- a/crates/goose-api/src/handlers.rs
+++ b/crates/goose-api/src/handlers.rs
@@ -10,6 +10,7 @@ use goose::message::Message;
 use goose::session::{self, Identifier};
 use goose::config::Config;
 use std::sync::LazyLock;
+use crate::api_sessions::{ApiSession, SESSIONS, cleanup_expired_sessions};
 
 pub static EXTENSION_MANAGER: LazyLock<ExtensionManager> = LazyLock::new(|| ExtensionManager::default());
 pub static AGENT: LazyLock<tokio::sync::Mutex<Agent>> = LazyLock::new(|| tokio::sync::Mutex::new(Agent::new()));
@@ -105,15 +106,30 @@ pub async fn start_session_handler(
 ) -> Result<impl warp::Reply, Rejection> {
     info!("Starting session with prompt: {}", req.prompt);
 
-    let agent = AGENT.lock().await;
+    cleanup_expired_sessions();
+
+    // create fresh agent using provider from the template agent
+    let template = AGENT.lock().await;
+    let mut new_agent = Agent::new();
+    if let Ok(provider) = template.provider().await {
+        let _ = new_agent.update_provider(provider).await;
+    }
+    drop(template);
+
     let mut messages = vec![Message::user().with_text(&req.prompt)];
     let session_id = Uuid::new_v4();
     let session_name = session_id.to_string();
     let session_path = session::get_path(Identifier::Name(session_name.clone()));
 
-    let provider = agent.provider().await.ok();
+    let session = ApiSession::new(new_agent);
+    let agent_ref = session.agent.clone();
+    SESSIONS.insert(session_id, session);
 
-    let result = agent
+    let provider = agent_ref.lock().await.provider().await.ok();
+
+    let result = agent_ref
+        .lock()
+        .await
         .reply(
             &messages,
             Some(SessionConfig {
@@ -178,11 +194,28 @@ pub async fn reply_session_handler(
 ) -> Result<impl warp::Reply, Rejection> {
     info!("Replying to session with prompt: {}", req.prompt);
 
-    let agent = AGENT.lock().await;
+    cleanup_expired_sessions();
 
     let session_name = req.session_id.to_string();
     let session_path = session::get_path(Identifier::Name(session_name.clone()));
 
+    let session_entry = match SESSIONS.get(&req.session_id) {
+        Some(s) => s,
+        None => {
+            let response = ApiResponse {
+                message: "Session not found".to_string(),
+                status: "error".to_string(),
+            };
+            return Ok(warp::reply::with_status(
+                warp::reply::json(&response),
+                warp::http::StatusCode::NOT_FOUND,
+            ));
+        }
+    };
+    session_entry.touch();
+    let agent_ref = session_entry.agent.clone();
+    drop(session_entry);
+
     let mut messages = match session::read_messages(&session_path) {
         Ok(m) => m,
         Err(_) => {
@@ -199,9 +232,11 @@ pub async fn reply_session_handler(
 
     messages.push(Message::user().with_text(&req.prompt));
 
-    let provider = agent.provider().await.ok();
+    let provider = agent_ref.lock().await.provider().await.ok();
 
-    let result = agent
+    let result = agent_ref
+        .lock()
+        .await
         .reply(
             &messages,
             Some(SessionConfig {
@@ -260,9 +295,14 @@ pub async fn end_session_handler(
     req: EndSessionRequest,
     _api_key: String,
 ) -> Result<impl warp::Reply, Rejection> {
+    cleanup_expired_sessions();
+
     let session_name = req.session_id.to_string();
     let session_path = session::get_path(Identifier::Name(session_name.clone()));
 
+    // remove in-memory agent if present
+    SESSIONS.remove(&req.session_id);
+
     if std::fs::remove_file(&session_path).is_ok() {
         let response = ApiResponse {
             message: "Session ended".to_string(),
diff --git a/crates/goose-api/src/lib.rs b/crates/goose-api/src/lib.rs
index b2037198..3b8e911e 100644
--- a/crates/goose-api/src/lib.rs
+++ b/crates/goose-api/src/lib.rs
@@ -1,5 +1,6 @@
 mod handlers;
 mod config;
 mod routes;
+mod api_sessions;
 
 pub use routes::{build_routes, run_server};