diff --git a/context.lua b/context.lua
index 01ea1ee..2c14e91 100644
--- a/context.lua
+++ b/context.lua
@@ -45,6 +45,17 @@ function M.new(opts)
         -- Default true per PHASE2.md §12 "Q18 default"; flip from caller.
         use_tool_role        = (opts.use_tool_role == nil) and true
                                                           or  opts.use_tool_role,
+        -- Phase 5: summarize-on-evict. When set, enforce_budget calls
+        -- summarize_fn(prior_summary, evicted_turns) -> string | nil
+        -- and updates ctx.summary instead of silently dropping turns.
+        -- Callback contract per PHASE5.md R-B1:
+        --   (nil, [turns])  → first-time summarize
+        --   (str, [turns])  → additive: extend prior summary with new turns
+        --   (str, nil)      → compress: re-summarize the prior summary
+        -- Returns nil → fall back to silent eviction (Phase 0 behavior).
+        summarize_fn         = opts.summarize_fn,
+        summary              = nil,   -- rolling summary string
+        max_summary_chars    = opts.max_summary_chars or 2000,
     }, Context)
 end
 
@@ -152,6 +163,14 @@ local function compose_background(items)
     return table.concat(lines, "\n")
 end
 
+-- Phase 5 R-C4: summary block composer. Mirrors the [background]
+-- pattern; suppressed under Norris (callers already guard, but the
+-- function returns "" for empty input regardless).
+local function compose_summary(summary_text)
+    if not summary_text or summary_text == "" then return "" end
+    return "\n\n[earlier conversation summary]\n" .. summary_text
+end
+
 -- Phase 3: NORRIS MODE suffix appended to the system prompt when
 -- self.norris_active. Carries self.norris_goal so eviction of the
 -- user's "[norris] goal: ..." turn doesn't lose the anchor.
@@ -181,10 +200,13 @@ message if they declined.]]
 
 function Context:to_messages()
     local sys_content = self.system_prompt
-    -- Phase 4 [background] memory block. Suppressed during Norris (R-C1
-    -- — avoid ~16K of redundant tokens per planning iteration).
+    -- Phase 4 [background] memory block + Phase 5 [earlier summary]
+    -- block. Both suppressed during Norris (R-C1 / R-C4 — avoid
+    -- redundant tokens per planning iteration; planner stays focused
+    -- on its goal anchor).
     if not self.norris_active then
         sys_content = sys_content .. compose_background(self.memory_items)
+        sys_content = sys_content .. compose_summary(self.summary)
     end
     -- Phase 3 NORRIS MODE suffix. Last block so its instructions dominate.
     if self.norris_active and self.norris_goal then
@@ -271,13 +293,38 @@ end
 function Context:enforce_budget()
     local evicted = 0
     while #self.turns > self.max_turns do
+        -- Collect evicted slice (pair: user + assistant)
+        local pair = {}
+        pair[#pair + 1] = self.turns[1]
+        if #self.turns >= 2 then pair[#pair + 1] = self.turns[2] end
+
+        -- Phase 5: ask the summarize callback (if wired) to absorb this
+        -- slice into the rolling summary. Callback contract per R-B1:
+        --   summarize_fn(prior_summary, evicted_turns) -> string | nil
+        -- nil return → silent eviction (Phase 0 behavior).
+        if self.summarize_fn then
+            local ok, new_summary = pcall(self.summarize_fn, self.summary, pair)
+            if ok and type(new_summary) == "string" and new_summary ~= "" then
+                self.summary = new_summary
+                -- R-C1: if grown past cap, compress in a second pass.
+                if #self.summary > self.max_summary_chars then
+                    local ok2, compressed = pcall(self.summarize_fn,
+                                                  self.summary, nil)
+                    if ok2 and type(compressed) == "string"
+                          and compressed ~= "" then
+                        self.summary = compressed
+                    end
+                end
+            end
+        end
+
+        -- Remove the pair from turns (matches Phase 0 visible effect)
         table.remove(self.turns, 1)
         evicted = evicted + 1
-        if #self.turns > self.max_turns or evicted % 2 == 1 then
-            if #self.turns > 0 then
-                table.remove(self.turns, 1)
-                evicted = evicted + 1
-            end
+        if #self.turns > 0 and (#self.turns > self.max_turns
+                                or evicted % 2 == 1) then
+            table.remove(self.turns, 1)
+            evicted = evicted + 1
         end
     end
     return evicted
@@ -296,6 +343,7 @@ end
 function Context:reset()
     self.turns = {}
     self.pending_exec_output = nil
+    self.summary = nil
 end
 
 return M