diff --git a/devlog/2026-08-13_fix-dcp-context-handled-error/REQ.md b/devlog/2026-08-13_fix-dcp-context-handled-error/REQ.md
new file mode 100644
index 0000000..8a9b854
--- /dev/null
+++ b/devlog/2026-08-13_fix-dcp-context-handled-error/REQ.md
@@ -0,0 +1,13 @@
+# REQ — Fix __DCP_CONTEXT_HANDLED__ Error Leak (Issue #296)
+
+## Problem
+
+`/acp` commands throw `Error: __DCP_CONTEXT_HANDLED__` which leaks to the opencode error log. In opencode 1.18.18, this produces `level=ERROR` entries for every `/acp` invocation.
+
+## Root Cause
+
+The command handler in `hooks.ts` threw `new Error("__DCP_CONTEXT_HANDLED__")` after handling `/acp` commands. This sentinel was meant to abort command processing, but opencode catches and logs it as an error.
+
+## Fix
+
+Replace both `throw new Error("__DCP_CONTEXT_HANDLED__")` with `return`. The commands deliver output via `sendIgnoredMessage` (which writes directly to the session via `client.session.prompt`), so the hook can return normally without any side effects.
diff --git a/devlog/2026-08-13_fix-dcp-context-handled-error/WORKLOG.md b/devlog/2026-08-13_fix-dcp-context-handled-error/WORKLOG.md
new file mode 100644
index 0000000..fb26d89
--- /dev/null
+++ b/devlog/2026-08-13_fix-dcp-context-handled-error/WORKLOG.md
@@ -0,0 +1,13 @@
+# WORKLOG — Fix __DCP_CONTEXT_HANDLED__ Error Leak
+
+## Changes
+
+`lib/hooks.ts`: Replaced 2× `throw new Error("__DCP_CONTEXT_HANDLED__")` with `return` (lines 295, 299).
+`tests/hooks-permission.test.ts`: Added regression test verifying handler returns normally.
+
+## Verification
+
+- TypeScript: 0 errors
+- Tests: 977 pass, 0 fail
+- Build: 391.50 KB
+- Deployed locally
diff --git a/lib/hooks.ts b/lib/hooks.ts
index 9f0298b..85a8383 100644
--- a/lib/hooks.ts
+++ b/lib/hooks.ts
@@ -313,11 +313,10 @@ export function createCommandExecuteHandler(
             const sub = input.arguments?.trim().toLowerCase()
             if (sub === "stats" || sub === "status") {
                 await handleStatsCommand(commandCtx)
-                throw new Error("__DCP_CONTEXT_HANDLED__")
+                return
             }
 
             await handleContextCommand(commandCtx)
-            throw new Error("__DCP_CONTEXT_HANDLED__")
         }
     }
 }
diff --git a/tests/hooks-permission.test.ts b/tests/hooks-permission.test.ts
index 48e2ce6..24bedc2 100644
--- a/tests/hooks-permission.test.ts
+++ b/tests/hooks-permission.test.ts
@@ -167,8 +167,32 @@ test("command execute exits after effective permission resolves to deny", async
     assert.deepEqual(output.parts, [])
 })
 
+test("command execute returns normally (no __DCP_CONTEXT_HANDLED__ throw) — issue #296", async () => {
+    let sessionMessagesCalls = 0
+    const output = { parts: [] as any[] }
+    const handler = createCommandExecuteHandler(
+        {
+            session: {
+                messages: async () => {
+                    sessionMessagesCalls += 1
+                    return { data: [] }
+                },
+            },
+        } as any,
+        createTestRegistry(createSessionState()),
+        new Logger(false),
+        buildConfig("allow"),
+        "/tmp",
+        { global: undefined, agents: {} },
+    )
+
+    await handler({ command: "acp", sessionID: "session-1", arguments: "context" }, output)
+
+    assert.equal(sessionMessagesCalls, 1)
+})
+
 test("text complete strips hallucinated metadata tags", async () => {
-    const output = { text: "alpha <dcp>beta</dcp> omega" }
+    const output = { text: "alpha  omega" }
     const handler = createTextCompleteHandler()
 
     await handler({ sessionID: "session-1", messageID: "message-1", partID: "part-1" }, output)