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Learning path · Context Engineering & Caching · 23

Context Engineering

Deliberate curation of what enters the prompt—ordering, compression, retrieval, and tool results—to maximize answer quality per token.

Why it matters

  • Often beats raw model upgrades for RAG and agent reliability.
  • Connects prompting, retrieval, memory, and caching decisions.
  • Core skill for production orchestration in 2026 stacks.

Key ideas

  • Selective inclusion
  • Ordering heuristics
  • Compression tiers

Context engineering is the craft of assembling the smallest sufficient prompt. Rank retrieved chunks, deduplicate overlapping passages, summarize stale history, and inject tool outputs only when relevant. Co-design with evals: measure faithfulness and answer relevance as you change assembly rules. The best teams treat context assembly as code—typed, tested, and observable—not an ad hoc string concat in a route handler. Treat assembly code as a first-class service with unit tests on ranking, deduplication, and ACL filtering—not a 200-line script in a notebook.

Updated 2026-08-09 · Full learning path