diff --git a/01-setup-and-first-steps/README.md b/01-setup-and-first-steps/README.md
index fa906ea7..d1eee101 100644
--- a/01-setup-and-first-steps/README.md
+++ b/01-setup-and-first-steps/README.md
@@ -518,7 +518,18 @@ copilot
 # Shows available models and lets you pick one. Examples: GPT-6 Sol, GPT-6 Luna, Claude Sonnet 5.5, Claude Opus 5.5.
 ```
 
-> 💡 **Session vs. persistent model**: The `/model` command changes the model for the **current session only**. When you start a new session, Copilot will use the default again. To set a permanent default model for all future sessions, use `/config model` instead.
+> 💡 **Session vs. persistent model**: The `/model` command changes the model for the **current session only**. When you start a new session, Copilot will use the default again. To set a permanent default model for all future sessions, use `/config model` inside a session, or the `copilot config` terminal command from your regular shell (no session needed):
+
+```bash
+# Set your default model from the terminal (outside a Copilot session)
+copilot config set model claude-sonnet-5.5
+
+# View all your saved settings
+copilot config list
+
+# Remove a setting and return to the default
+copilot config remove model
+```
 
 > 💡 **Tip**: Copilot CLI usage is measured in **GitHub AI Credits**. The number of credits used depends on the model you select and how many tokens the task consumes. More capable models may cost more, so use lighter models for routine tasks and save powerful reasoning models for complex work. Run `/usage` to see how many AI credits your current session has used.
 
diff --git a/06-mcp-servers/README.md b/06-mcp-servers/README.md
index bfbc7f80..9c51a7a2 100644
--- a/06-mcp-servers/README.md
+++ b/06-mcp-servers/README.md
@@ -223,7 +223,7 @@ The GitHub MCP server is built-in and requires no setup. Below are additional se
 
 > 💡 **The `.` path**: The `.` means "current directory". Copilot can access files relative to where you launched it. In a Codespace, this is your workspace root. You can also use an absolute path like `/workspaces/copilot-cli-for-beginners` if you prefer.
 
-Add this to your `~/.copilot/mcp-config.json` and restart Copilot.
+Add this to your `~/.copilot/mcp-config.json`. MCP configuration changes take effect between turns.
 
 </details>
 
@@ -252,7 +252,7 @@ Context7 gives Copilot access to up-to-date documentation for popular frameworks
 - ✅ **No account needed** 
 - ✅ **Your code stays local**
 
-Add this to your `~/.copilot/mcp-config.json` and restart Copilot.
+Add this to your `~/.copilot/mcp-config.json`. MCP configuration changes take effect between turns.
 
 </details>
 
@@ -301,7 +301,9 @@ copilot
 
 Copilot CLI includes a built-in `web_fetch` tool that can fetch content from any URL. This is useful for pulling in READMEs, API docs, or release notes without leaving your terminal. No MCP server needed.
 
-You can control which URLs are accessible via `~/.copilot/config.json` (general Copilot settings), which is separate from `~/.copilot/mcp-config.json` (MCP server definitions).
+You can control which URLs are accessible via `~/.copilot/settings.json` (general Copilot settings), which is separate from `~/.copilot/mcp-config.json` (MCP server definitions).
+
+> ⚠️ **Settings file location**: Copilot CLI reads user settings from `~/.copilot/settings.json`. The older `~/.copilot/config.json` file is no longer used for user settings. Any keys placed there will be silently ignored.
 
 ```json
 {
@@ -757,7 +759,7 @@ copilot
 
 **Expected result**: Copilot lists `book_app.py`, `books.py`, and `utils.py` with their functions.
 
-> 💡 **Don't have filesystem MCP configured yet?** Create the config file from the [Complete Configuration](#complete-configuration-file) section above. Then restart Copilot.
+> 💡 **Don't have filesystem MCP configured yet?** Create the config file from the [Complete Configuration](#complete-configuration-file) section above. MCP configuration changes take effect between turns.
 
 ---
 
@@ -851,7 +853,7 @@ An empty author and year of 0. That's the data quality issue!
 
 The tests in `test_books.py` cover: `add_book`, `mark_as_read`, `remove_book`, `get_unread_books`, and `find_book_by_title`. Functions like `load_books`, `save_books`, and `list_books` don't have direct tests. The CLI functions in `book_app.py` and helpers in `utils.py` have no tests at all.
 
-**If MCP isn't working:** Restart Copilot after editing the config file.
+**If MCP isn't working:** MCP configuration changes now take effect between turns automatically. If you've just added a new server and Copilot doesn't see it yet, type your next message and the server should be available.
 
 </details>