diff --git a/submissions/graceful-tool-failure-handling/README.md b/submissions/graceful-tool-failure-handling/README.md
new file mode 100644
index 00000000..e6f0de0d
--- /dev/null
+++ b/submissions/graceful-tool-failure-handling/README.md
@@ -0,0 +1,28 @@
+# Graceful Tool Failure Handling
+
+A general agent-quality skill for the moment a connector, API call, or file
+operation doesn't work. The common failure mode isn't the error itself, it's
+what agents do next: continue as if the call had succeeded, quietly drop the
+step, or invent a plausible-looking result to fill the gap. This skill makes
+the honest response the default: say what was attempted, what happened
+instead, and what to do about it.
+
+## Where this pattern already shows up in this gallery
+
+This same discipline already shows up domain-specifically elsewhere: an IT
+support intake skill that never invents a ticket number a connector didn't
+return, or a company-memory skill that says plainly when no persistent
+storage is configured rather than pretending memory will carry over. This
+skill generalizes that same honesty to any tool call, for agents that don't
+already have it built into their domain-specific instructions.
+
+## How it's different from tool-tracer
+
+[`tool-tracer`](../tool-tracer) produces a debug log of tool/action calls for
+a developer to inspect after the fact. This skill is about the in-conversation
+response when a call fails right now, what the user sees and what happens
+next, not a diagnostic artifact.
+
+---
+
+Skill by Tim Karlsson (╯°□°)╯︵ ┻━┻ Works 60% of the time, every time.
diff --git a/submissions/graceful-tool-failure-handling/SKILL.md b/submissions/graceful-tool-failure-handling/SKILL.md
new file mode 100644
index 00000000..c3071ad3
--- /dev/null
+++ b/submissions/graceful-tool-failure-handling/SKILL.md
@@ -0,0 +1,67 @@
+---
+name: graceful-tool-failure-handling
+description: >-
+  Use this skill whenever a tool call, connector, API request, or file
+  operation fails, times out, or returns an unexpected result, before
+  deciding how to respond to the user. Applies any time a needed capability
+  isn't available or doesn't behave as expected.
+---
+
+When something doesn't work, say exactly what happened and offer a real
+path forward. Never continue as if it worked, and never go silent about it.
+
+## Instructions
+
+1. When a tool call fails, times out, returns an error, or returns something
+   that doesn't look like what was expected, stop and notice it rather than
+   proceeding on an assumption about what it probably would have returned.
+
+2. Tell the user plainly: what was attempted, what happened instead, and
+   whether it's worth retrying. Match the framing to the failure, a timeout
+   might be worth one retry, a permissions error usually isn't going to
+   resolve itself on retry, a "not configured" state needs setup, not a
+   retry.
+
+3. Never fabricate a result to fill the gap left by a failed tool call. If a
+   ticket-creation tool fails, don't present a plausible-looking ticket
+   number. If a search returns nothing, don't answer as if it had returned
+   something. The honest response is "this didn't work" plus what's known
+   without it, not a smoothed-over answer that hides the failure.
+
+4. Distinguish a capability that failed from a capability that was never
+   available in the first place. "The connector isn't configured on this
+   platform" and "the connector is configured but returned an error" call for
+   different responses: the first needs a setup step from an admin, the
+   second might just need a retry or a different approach.
+
+5. Offer the best available fallback: a manual version of what the tool would
+   have done, a different tool that can accomplish the same goal, or a clear
+   statement of what the user needs to do themselves. Don't just report the
+   failure and stop there if there's a reasonable way to still help.
+
+6. If a task depends on a chain of tool calls and one partway through fails,
+   report exactly how far it got and what's now in an incomplete state,
+   rather than presenting the whole task as either fully done or fully
+   failed when the truth is in between.
+
+7. For a task that already has some safe, completed side effects (a file was
+   created before a later step failed), say what already happened so nothing
+   gets silently duplicated or left in an inconsistent state on a retry.
+
+## Guardrails
+
+- Never present output that depended on a failed tool call as if the call had
+  succeeded.
+- Never invent an ID, confirmation number, or result that a tool didn't
+  actually return.
+- Don't apologize excessively or dwell on the failure. State it once, clearly,
+  and move to what can still be done.
+- Don't silently retry an operation that has side effects (creating,
+  sending, or deleting something) without telling the user a retry is
+  happening, in case the first attempt actually succeeded despite an
+  ambiguous error.
+
+## Tone
+
+Direct and unbothered. A tool failure is routine information to relay, not
+something to be defensive or overly apologetic about.
diff --git a/submissions/graceful-tool-failure-handling/metadata.json b/submissions/graceful-tool-failure-handling/metadata.json
new file mode 100644
index 00000000..0baea327
--- /dev/null
+++ b/submissions/graceful-tool-failure-handling/metadata.json
@@ -0,0 +1,11 @@
+{
+  "name": "Graceful Tool Failure Handling",
+  "description": "When a tool, connector, or API call fails or misbehaves, states exactly what happened and offers a real fallback, instead of continuing as if it succeeded or fabricating the result it would have returned.",
+  "platforms": ["Cowork", "Copilot Studio", "Scout"],
+  "tags": ["agent-quality", "reliability", "error-handling", "transparency", "guardrail"],
+  "author": "Tim Karlsson",
+  "authorUrl": "https://github.com/Timziito",
+  "version": "1.0.0",
+  "createdAt": "2026-07-27",
+  "updatedAt": "2026-07-27"
+}