diff --git a/CHANGELOG.md b/CHANGELOG.md
index 36cb842..98e3cea 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -45,7 +45,14 @@ ClaudeForge v2.0.0 modernizes the toolkit for Claude Code v2.1.4+ with hooks, mo
   - Documents hooks functionality
   - Provides troubleshooting guide
   - Includes rollback procedures
+- **Testing Scripts**: Complete test suite in `test/` directory
+  - `test/validate_migration.sh` - 18 automated validation tests
+  - `test/rollback.sh` - One-command rollback to v1.x
+  - `test/README.md` - Testing documentation and workflows
+  - `test/LOCAL_TESTING_GUIDE.md` - Step-by-step local testing guide
 - **Updated Documentation**: All docs now reference Claude Code v2.1.4+ features
+  - `CLAUDE.md` - Updated with v2.0.0 features and permission syntax examples
+  - `README.md` - Added "New in v2.0" section highlighting features
 
 ### Changed
 
diff --git a/CLAUDE.md b/CLAUDE.md
index be2a7bc..992575b 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -14,6 +14,19 @@ This file provides guidance to Claude Code (claude.ai/code) when working with co
 
 ---
 
+## What's New in v2.0.0
+
+**Claude Code v2.1.4+ Support:**
+- **Lifecycle Hooks**: Guardian agent uses SessionStart, PreToolUse, PostToolUse hooks
+- **Modern Permissions**: Updated to `permissions:` array syntax
+- **Hot-Reload**: Skills auto-reload when modified (no restart needed)
+- **Fork-Safe Mode**: Guardian runs independently with `fork_safe: true`
+- **Auto-Migration**: Seamless upgrade from v1.x with automatic backups
+
+**Migration:** See `docs/MIGRATION_V2.md` for upgrading from v1.0.0.
+
+---
+
 ## Architecture
 
 ### Component Interaction Flow
@@ -152,15 +165,32 @@ When updating `claude-md-guardian` agent:
 
 1. Edit `agent/claude-md-guardian.md`
 2. Key YAML frontmatter fields:
-   - `tools`: Limited to Bash, Read, Write, Edit, Grep, Glob, Skill
+   - `permissions`: [Bash, Read, Write, Edit, Grep, Glob, Skill]
    - `model`: Set to `haiku` for token efficiency
    - `color`: Visual indicator (purple)
+   - `fork_safe`: Set to `true` for independent execution
+   - `hooks`: Array of lifecycle hooks (SessionStart, PreToolUse, PostToolUse)
 3. Agent workflow phases:
    - Phase 1: Assessment (check git changes)
    - Phase 2: Analysis (determine scope)
    - Phase 3: Update (invoke skill for targeted updates)
 4. Test: `cp agent/claude-md-guardian.md ~/.claude/agents/`
 
+**Example Agent Definition with v2.0.0 Syntax:**
+```yaml
+---
+name: claude-md-guardian
+permissions: [Bash, Read, Write, Edit, Grep, Glob, Skill]
+model: haiku
+color: purple
+fork_safe: true
+hooks:
+  - SessionStart
+  - PreToolUse
+  - PostToolUse
+---
+```
+
 ### Adding New Templates
 
 To add a new reference template (e.g., Rust, mobile):
@@ -382,11 +412,28 @@ Claude Code recognizes the skill name `claude-md-enhancer` and calls Python modu
 The agent uses the skill as its core capability:
 ```yaml
 # In agent/claude-md-guardian.md:
-tools: Bash, Read, Write, Edit, Grep, Glob, Skill
+permissions: [Bash, Read, Write, Edit, Grep, Glob, Skill]
+hooks:
+  - SessionStart  # Detects project changes on session start
+  - PreToolUse    # Validates before tool execution
+  - PostToolUse   # Validates after CLAUDE.md updates
 ```
 
 Agent invokes skill with: `Skill: claude-md-enhancer` in agent workflow.
 
+**Example Hook Usage:**
+```markdown
+# When SessionStart hook triggers:
+1. Check git diff for changes
+2. If significant changes detected → invoke skill
+3. Update CLAUDE.md automatically
+
+# When PostToolUse hook triggers after Edit/Write to CLAUDE.md:
+1. Validate updated content with validator.py
+2. Report quality score
+3. Suggest improvements if needed
+```
+
 ### Agent ↔ Git
 
 Agent detects changes via git commands:
@@ -448,15 +495,15 @@ When updating references:
 
 ## Version Management
 
-**Current Version:** 1.0.0 (see CHANGELOG.md)
+**Current Version:** 2.0.0 (see CHANGELOG.md)
 **Versioning:** Semantic Versioning (MAJOR.MINOR.PATCH)
 
 When releasing new version:
 1. Update `CHANGELOG.md` with changes under new version header
 2. Update version in `README.md` badge
 3. Update version in `skill/SKILL.md` bottom section
-4. Create git tag: `git tag -a v1.1.0 -m "Release v1.1.0"`
-5. Push tag: `git push origin v1.1.0`
+4. Create git tag: `git tag -a v2.1.0 -m "Release v2.1.0"`
+5. Push tag: `git push origin v2.1.0`
 6. Create GitHub release with CHANGELOG excerpt
 
 ---
diff --git a/agent/README.md b/agent/README.md
index 7929b75..edebfac 100644
--- a/agent/README.md
+++ b/agent/README.md
@@ -45,7 +45,7 @@ Available in all your Claude Code projects:
 
 ```bash
 # Copy agent to user directory
-cp generated-agents/claude-md-guardian/claude-md-guardian.md ~/.claude/agents/
+cp agent/claude-md-guardian.md ~/.claude/agents/
 
 # Restart Claude Code
 ```
@@ -59,7 +59,7 @@ Available only in current project:
 mkdir -p .claude/agents
 
 # Copy agent
-cp generated-agents/claude-md-guardian/claude-md-guardian.md .claude/agents/
+cp agent/claude-md-guardian.md .claude/agents/
 
 # Restart Claude Code
 ```
@@ -83,12 +83,15 @@ Automatically check for updates at session start:
 
 **Note**: The hook creates awareness, but the agent only updates if significant changes detected.
 
+**v2.0.0 Update**: Hooks now support advanced features like `run_in_background`, environment variables, and conditional execution. See [docs/MIGRATION_V2.md](../docs/MIGRATION_V2.md) for details.
+
 ## Prerequisites
 
 **Required**:
-- `claude-md-enhancer` skill must be installed
-  - User-level: `~/.claude/skills/claude-md-enhancer/`
-  - Project-level: `.claude/skills/claude-md-enhancer/`
+- `claudeforge-skill` must be installed
+  - User-level: `~/.claude/skills/claudeforge-skill/`
+  - Project-level: `.claude/skills/claudeforge-skill/`
+  - **v2.0.0**: Auto-migrates from old `claude-md-enhancer` name
 
 **Optional** (but recommended):
 - `/enhance-claude-md` slash command
@@ -329,23 +332,26 @@ In the agent file, you can adjust when updates trigger:
 
 ### Skill Not Found Error
 
-**Problem**: "claude-md-enhancer skill not found"
+**Problem**: "claudeforge-skill not found"
 **Solution**:
 ```bash
 # Install the skill
-cp -r generated-skills/claude-md-enhancer ~/.claude/skills/
+cp -r skill ~/.claude/skills/claudeforge-skill/
 # Restart Claude Code
+# Note: v2.0.0 auto-migrates from old claude-md-enhancer name
 ```
 
 ## Integration
 
-### With claude-md-enhancer Skill
+### With claudeforge-skill
 
 The agent uses this skill as its core capability:
 ```
 Agent detects changes → Invokes skill → Skill updates sections → Agent validates
 ```
 
+**v2.0.0**: Uses new `permissions:` syntax for tool access control.
+
 ### With /enhance-claude-md Command
 
 The slash command can invoke the agent:
@@ -389,16 +395,17 @@ The slash command can invoke the agent:
 
 ## Version
 
-- **Version**: 1.0.0
-- **Last Updated**: November 2025
-- **Compatible**: Claude Code 2.0+
-- **Dependencies**: claude-md-enhancer skill v1.0.0+
+- **Version**: 2.0.0
+- **Last Updated**: January 2026
+- **Compatible**: Claude Code 2.1.4+
+- **Dependencies**: claudeforge-skill v2.0.0+
+- **Migration**: See [docs/MIGRATION_V2.md](../docs/MIGRATION_V2.md) for upgrade guide
 
 ## Related Resources
 
-- **Skill**: `generated-skills/claude-md-enhancer/`
-- **Slash Command**: `generated-commands/enhance-claude-md/`
-- **Agent File**: `generated-agents/claude-md-guardian/claude-md-guardian.md`
+- **Skill**: `skill/` (claudeforge-skill)
+- **Slash Command**: `command/` (enhance-claude-md)
+- **Agent File**: `agent/claude-md-guardian.md`
 
 ---
 
diff --git a/command/README.md b/command/README.md
index 3f58bc4..bec25d4 100644
--- a/command/README.md
+++ b/command/README.md
@@ -9,6 +9,7 @@ Initialize or enhance CLAUDE.md files using the `claude-md-enhancer` skill with
 - **Quality Analysis**: For existing projects, analyzes current CLAUDE.md and provides actionable recommendations
 - **100% Native Format Compliance**: Generates files with project structure diagrams, setup instructions, architecture sections
 - **Modular Architecture Support**: Creates context-specific CLAUDE.md files (backend/, frontend/, database/)
+- **v2.0.0**: Enhanced hooks support with background execution and conditional triggers
 
 ## Installation
 
@@ -16,17 +17,17 @@ Initialize or enhance CLAUDE.md files using the `claude-md-enhancer` skill with
 
 ```bash
 # Copy command to your project
-cp -r generated-commands/enhance-claude-md /path/to/your/project/.claude/commands/
+cp -r command /path/to/your/project/.claude/commands/
 
 # Or create symlink
-ln -s $(pwd)/generated-commands/enhance-claude-md /path/to/your/project/.claude/commands/enhance-claude-md
+ln -s $(pwd)/command /path/to/your/project/.claude/commands/enhance-claude-md
 ```
 
 ### Option 2: User-Level (All Projects)
 
 ```bash
 # Copy command to user commands directory
-cp -r generated-commands/enhance-claude-md ~/.claude/commands/
+cp -r command ~/.claude/commands/
 
 # Restart Claude Code
 ```
@@ -140,9 +141,10 @@ The command follows the **Multi-Phase Pattern** (similar to `codebase-analyze`):
 ## Prerequisites
 
 **Required**:
-- `claude-md-enhancer` skill must be installed
-  - Project-level: `.claude/skills/claude-md-enhancer/`
-  - User-level: `~/.claude/skills/claude-md-enhancer/`
+- `claudeforge-skill` must be installed
+  - Project-level: `.claude/skills/claudeforge-skill/`
+  - User-level: `~/.claude/skills/claudeforge-skill/`
+  - **v2.0.0**: Auto-migrates from old `claude-md-enhancer` name
 
 **Recommended**:
 - Git repository (for better context detection)
@@ -184,7 +186,7 @@ The command follows the **Multi-Phase Pattern** (similar to `codebase-analyze`):
 
 ## Output
 
-The command can invoke either the `claude-md-enhancer` skill directly OR the `claude-md-guardian` agent (recommended for maintenance).
+The command can invoke either the `claudeforge-skill` directly OR the `claude-md-guardian` agent (recommended for maintenance).
 
 ### Option A: Direct Skill Invocation
 
@@ -316,9 +318,10 @@ Proceed?
 
 ### "Skill not found" error
 
-**Solution**: Install the `claude-md-enhancer` skill first:
+**Solution**: Install the `claudeforge-skill` first:
 ```bash
-cp -r generated-skills/claude-md-enhancer ~/.claude/skills/
+cp -r skill ~/.claude/skills/claudeforge-skill/
+# Note: v2.0.0 auto-migrates from old claude-md-enhancer name
 ```
 
 ### Command not recognized
@@ -350,11 +353,26 @@ Discovery → Analysis → Task
     ↓
 Invokes claude-md-guardian (agent)
     ↓
-Agent uses claude-md-enhancer (skill)
+Agent uses claudeforge-skill (skill)
     ↓
 CLAUDE.md updated and synchronized
 ```
 
+**v2.0.0 Enhancement**: Hooks can now trigger background validation checks. Example:
+
+```json
+{
+  "hooks": {
+    "AfterCommit": {
+      "command": "/enhance-claude-md",
+      "run_in_background": true,
+      "timeout": 10000,
+      "description": "Validate CLAUDE.md after commits"
+    }
+  }
+}
+```
+
 ### When to Use the Agent
 
 **Via this command**:
@@ -369,21 +387,22 @@ CLAUDE.md updated and synchronized
 - Silent if no significant changes
 - Updates only when needed
 
-**See**: `generated-agents/claude-md-guardian-README.md` for complete agent documentation
+**See**: [agent/README.md](../agent/README.md) for complete agent documentation
 
 ## Related Resources
 
-- **Skill Documentation**: `generated-skills/claude-md-enhancer/README.md`
-- **Skill Examples**: `generated-skills/claude-md-enhancer/examples/`
-- **Agent Documentation**: `generated-agents/claude-md-guardian-README.md`
+- **Skill Documentation**: [../skill/README.md](../skill/README.md)
+- **Skill Examples**: [../skill/examples/](../skill/examples/)
+- **Agent Documentation**: [../agent/README.md](../agent/README.md)
 - **Official Slash Command Reference**: `documentation/references/slash-command-update-claude-md-example.md`
 
 ## Version
 
-- **Version**: 1.0.0
-- **Last Updated**: November 2025
-- **Compatible**: Claude Code 2.0+
-- **Dependencies**: claude-md-enhancer skill v1.0.0+
+- **Version**: 2.0.0
+- **Last Updated**: January 2026
+- **Compatible**: Claude Code 2.1.4+
+- **Dependencies**: claudeforge-skill v2.0.0+
+- **Migration**: See [docs/MIGRATION_V2.md](../docs/MIGRATION_V2.md) for upgrade guide
 
 ---
 
diff --git a/skill/README.md b/skill/README.md
index f5784e2..858035b 100644
--- a/skill/README.md
+++ b/skill/README.md
@@ -1,9 +1,11 @@
-# claude-md-enhancer
+# claudeforge-skill
 
 > **Analyze, generate, and enhance CLAUDE.md files for any project type with intelligent templates and best practices.**
 
 A comprehensive Claude Code skill that helps teams create and maintain high-quality CLAUDE.md files. Supports analysis, validation, generation, and enhancement with tech stack customization, team size adaptation, and modular architecture.
 
+**v2.0.0 Update**: Now uses modern `permissions:` syntax for tool access control, replacing deprecated `tools:` and `allowed-tools:` configurations.
+
 ## Features
 
 🆕 **Interactive Initialization** - Explore repository, detect project context, and create CLAUDE.md through conversational workflow
@@ -27,7 +29,7 @@ A comprehensive Claude Code skill that helps teams create and maintain high-qual
 
 ```bash
 # Copy skill folder to your project
-cp -r claude-md-enhancer /path/to/your/project/.claude/skills/
+cp -r skill /path/to/your/project/.claude/skills/claudeforge-skill/
 
 # Restart Claude Code or reload skills
 ```
@@ -36,9 +38,10 @@ cp -r claude-md-enhancer /path/to/your/project/.claude/skills/
 
 ```bash
 # Copy skill folder to user skills directory
-cp -r claude-md-enhancer ~/.claude/skills/
+cp -r skill ~/.claude/skills/claudeforge-skill/
 
 # Available across all your projects
+# Note: v2.0.0 auto-migrates from old claude-md-enhancer name
 ```
 
 #### Option 3: Claude Apps
@@ -55,7 +58,7 @@ cp -r claude-md-enhancer ~/.claude/skills/
 #### New Project (Interactive Initialization)
 
 ```
-Hey Claude—I just added the "claude-md-enhancer" skill. I don't have a CLAUDE.md file yet. Can you help me create one for this project?
+Hey Claude—I just added the "claudeforge-skill". I don't have a CLAUDE.md file yet. Can you help me create one for this project?
 ```
 
 Claude will:
@@ -67,7 +70,7 @@ Claude will:
 #### Existing Project
 
 ```
-Hey Claude—I just added the "claude-md-enhancer" skill. Can you analyze my CLAUDE.md and suggest improvements?
+Hey Claude—I just added the "claudeforge-skill". Can you analyze my CLAUDE.md and suggest improvements?
 ```
 
 See [HOW_TO_USE.md](HOW_TO_USE.md) for comprehensive examples.
@@ -79,18 +82,21 @@ See [HOW_TO_USE.md](HOW_TO_USE.md) for comprehensive examples.
 ### Module Overview
 
 ```
-claude-md-enhancer/
+claudeforge-skill/
 ├── SKILL.md                    # Skill definition with YAML frontmatter
 ├── analyzer.py                 # Analyzes existing CLAUDE.md files
 ├── validator.py                # Validates against best practices
 ├── generator.py                # Generates new content
 ├── template_selector.py        # Selects appropriate templates
+├── workflow.py                 # Interactive initialization workflow
 ├── sample_input.json           # Example inputs
 ├── expected_output.json        # Expected outputs
 ├── HOW_TO_USE.md               # Usage examples
 └── README.md                   # This file
 ```
 
+**v2.0.0**: Updated SKILL.md now uses `permissions:` instead of `tools:` for better security and control.
+
 ### Python Modules
 
 #### `workflow.py` - Initialization Workflow (New!)
@@ -459,9 +465,10 @@ Before finalizing any CLAUDE.md generation:
 
 ## Version
 
-**Version**: 1.0.0
-**Last Updated**: November 2025
-**Compatible**: Claude Code 2.0+, Claude Apps, Claude API
+**Version**: 2.0.0
+**Last Updated**: January 2026
+**Compatible**: Claude Code 2.1.4+, Claude Apps, Claude API
+**Migration**: See [../docs/MIGRATION_V2.md](../docs/MIGRATION_V2.md) for upgrade guide from v1.x
 
 ---
 
@@ -505,23 +512,34 @@ For automatic CLAUDE.md maintenance throughout your project lifecycle, use the *
 
 ```bash
 # User-level (all projects)
-cp generated-agents/claude-md-guardian.md ~/.claude/agents/
+cp agent/claude-md-guardian.md ~/.claude/agents/
 
 # Project-level (current project)
-cp generated-agents/claude-md-guardian.md .claude/agents/
+cp agent/claude-md-guardian.md .claude/agents/
 ```
 
 ### How They Work Together
 
 ```
-claude-md-guardian (agent) → Uses → claude-md-enhancer (skill)
+claude-md-guardian (agent) → Uses → claudeforge-skill (skill)
                       ↓
          Detects changes → Invokes skill → Updates CLAUDE.md
 ```
 
 **Result**: Your CLAUDE.md stays synchronized with your codebase automatically!
 
-See `generated-agents/claude-md-guardian-README.md` for complete agent documentation.
+**v2.0.0**: Agent now uses `permissions:` syntax for controlled tool access. Example:
+
+```yaml
+permissions:
+  allow:
+    - Bash(git:*)
+    - Read
+    - Write
+    - Skill(claudeforge-skill)
+```
+
+See `agent/README.md` for complete agent documentation.
 
 ---
 
@@ -529,8 +547,9 @@ See `generated-agents/claude-md-guardian-README.md` for complete agent documenta
 
 - **Documentation**: See [SKILL.md](SKILL.md) for complete documentation
 - **Examples**: See [HOW_TO_USE.md](HOW_TO_USE.md) for usage examples
-- **Companion Agent**: See `../../generated-agents/claude-md-guardian-README.md`
-- **Slash Command**: See `../../generated-commands/enhance-claude-md/README.md`
+- **Companion Agent**: See [../agent/README.md](../agent/README.md)
+- **Slash Command**: See [../command/README.md](../command/README.md)
+- **Migration Guide**: See [../docs/MIGRATION_V2.md](../docs/MIGRATION_V2.md)
 - **Issues**: Report bugs in the main repository
 - **Community**: Share your CLAUDE.md setups and best practices
 
diff --git a/skill/examples/README.md b/skill/examples/README.md
index d5c203d..efe14b2 100644
--- a/skill/examples/README.md
+++ b/skill/examples/README.md
@@ -2,7 +2,9 @@
 
 This folder contains reference implementations of CLAUDE.md files for different project types and team sizes.
 
-**✨ NEW**: All examples now follow **100% native Claude Code format** with proper project structure diagrams, setup instructions, architecture sections, and file structure explanations - matching the official `/update-claude-md` slash command format.
+**✨ v2.0.0 Update**: All examples now follow **100% native Claude Code format** with proper project structure diagrams, setup instructions, architecture sections, and file structure explanations - matching the official `/update-claude-md` slash command format.
+
+**New in v2.0.0**: Examples demonstrate modern `permissions:` syntax for skills and agents, replacing deprecated `tools:` configurations.
 
 ## Available Examples
 
@@ -59,16 +61,18 @@ cp examples/modular-backend-CLAUDE.md /path/to/your/project/backend/CLAUDE.md
 cp examples/modular-frontend-CLAUDE.md /path/to/your/project/frontend/CLAUDE.md
 ```
 
-### 3. Using with claude-md-enhancer Skill
+### 3. Using with claudeforge-skill
 
 These examples demonstrate the output quality you can expect from the skill:
 
 ```
-Hey Claude—I just added the "claude-md-enhancer" skill.
+Hey Claude—I just added the "claudeforge-skill".
 Can you create a CLAUDE.md similar to the core-small-team example
 but customized for my Go API project?
 ```
 
+**v2.0.0**: The skill now uses `permissions:` syntax for secure tool access control.
+
 ## Template Selection Guide
 
 ### Choose Minimal Template When:
@@ -114,6 +118,8 @@ All examples now include these **native Claude Code sections**:
 
 **Why This Matters**: These sections match the official `/update-claude-md` slash command format, ensuring Claude Code can navigate and understand your codebase efficiently.
 
+**v2.0.0 Compatibility**: All examples are compatible with Claude Code 2.1.4+ and use modern permission syntax where applicable.
+
 ### Expected Quality Scores
 
 | Example | Quality Score |
@@ -132,7 +138,22 @@ All examples now include these **native Claude Code sections**:
 3. **Add Team Standards**: Include team-specific conventions
 4. **Update Commands**: Replace commands with your actual npm/yarn/poetry scripts
 5. **Add Context**: Include project-specific context that helps Claude understand your goals
+6. **v2.0.0**: Use `permissions:` syntax in skills/agents instead of deprecated `tools:` or `allowed-tools:`
 
 ## Contributing
 
-These examples represent best practices as of November 2025. If you have improvements or additional examples, please contribute them!
+These examples represent best practices as of January 2026. If you have improvements or additional examples, please contribute them!
+
+## Version
+
+- **Version**: 2.0.0
+- **Last Updated**: January 2026
+- **Compatible**: Claude Code 2.1.4+
+- **Migration Guide**: See [../../docs/MIGRATION_V2.md](../../docs/MIGRATION_V2.md) for upgrade instructions
+
+## Related Documentation
+
+- **Skill Documentation**: [../README.md](../README.md)
+- **Agent Documentation**: [../../agent/README.md](../../agent/README.md)
+- **Command Documentation**: [../../command/README.md](../../command/README.md)
+- **Migration Guide**: [../../docs/MIGRATION_V2.md](../../docs/MIGRATION_V2.md)