diff --git a/README.md b/README.md
index 65a2339c8..5a6bd3629 100644
--- a/README.md
+++ b/README.md
@@ -30,9 +30,10 @@ For a complete walkthrough, see the **[Getting Started Guide](./docs/getting-sta
 
 Quick steps:
 
-1. **Install the Copilot CLI:**
+1. **(Optional) Install the Copilot CLI**
 
-   Follow the [Copilot CLI installation guide](https://docs.github.com/en/copilot/how-tos/set-up/install-copilot-cli) to install the CLI, or ensure `copilot` is available in your PATH.
+For Node.js, Python, and .NET SDKs, the Copilot CLI is bundled automatically and no separate installation is required.
+For the Go SDK, install the CLI manually or ensure `copilot` is available in your PATH.
 
 2. **Install your preferred SDK** using the commands above.
 
@@ -80,7 +81,11 @@ See the **[Authentication documentation](./docs/auth/index.md)** for details on
 
 ### Do I need to install the Copilot CLI separately?
 
-Yes, the Copilot CLI must be installed separately. The SDKs communicate with the Copilot CLI in server mode to provide agent capabilities.
+No — for Node.js, Python, and .NET SDKs, the Copilot CLI is bundled automatically as a dependency. You do not need to install it separately.
+
+For Go SDK, you may still need to install the CLI manually.
+
+Advanced: You can override the bundled CLI using `cliPath` or `cliUrl` if you want to use a custom CLI binary or connect to an external server.
 
 ### What tools are enabled by default?
 
diff --git a/docs/setup/local-cli.md b/docs/setup/local-cli.md
index 91a3b4936..4b0e5a1cd 100644
--- a/docs/setup/local-cli.md
+++ b/docs/setup/local-cli.md
@@ -1,12 +1,12 @@
 # Local CLI Setup
 
-Use the Copilot SDK with the CLI already signed in on your machine. This is the simplest configuration — zero auth code, zero infrastructure.
+Use the Copilot SDK with a Copilot CLI instance signed in on your machine. Depending on the SDK, this may be a bundled CLI (included automatically) or a system-installed CLI available in your PATH. This is the simplest configuration — zero auth code, zero infrastructure.
 
 **Best for:** Personal projects, prototyping, local development, learning the SDK.
 
 ## How It Works
 
-When you install the Copilot CLI and sign in, your credentials are stored in the system keychain. The SDK automatically starts the CLI as a child process and uses those stored credentials.
+When a Copilot CLI instance is available (either bundled with the SDK or installed on your system) and signed in, credentials are stored in the system keychain. The SDK automatically starts the CLI as a child process and uses those stored credentials.
 
 ```mermaid
 flowchart LR
@@ -21,7 +21,7 @@ flowchart LR
 ```
 
 **Key characteristics:**
-- CLI is spawned automatically by the SDK (no setup needed)
+- CLI is spawned automatically by the SDK (using a bundled CLI or a system-installed CLI if available)
 - Authentication uses the signed-in user's credentials from the system keychain
 - Communication happens over stdio (stdin/stdout) — no network ports
 - Sessions are local to your machine
@@ -161,7 +161,7 @@ While defaults work great, you can customize the local setup:
 
 ```typescript
 const client = new CopilotClient({
-    // Override CLI location (default: bundled with @github/copilot)
+    // Override CLI location (by default, the SDK uses a bundled CLI or resolves one from your system)
     cliPath: "/usr/local/bin/copilot",
 
     // Set log level for debugging