Demystifying Agent Skills: Why They Work-Until They Don't

Agent skills are the de facto mechanism for extending LLM agents with reusable guidance. A skill can shape the agent's task execution, including planning, tool use, problem-solving, and validation. Prior work reported mixed results of agent skills: some skills improve task success rates, while others have no effect, increase token use and execution time, and even reduce success rates. This paper presents a comprehensive analysis of skill-induced agent failures by attributing task failures and cost regressions to specific loaded skills. We introduce a differential analysis framework that attributes a failure or regression to a skill by comparing a target skill-guided run against a no-skill or semantically matched skill reference run that solves the same task, or solves it more cheaply. We instantiate this framework on SkillsBench and SWE-Skills-Bench, yielding 307 skill-induced failures, including 125 functional failures and 182 efficiency regressions. We also build SkillTriage, a taxonomy-guided attribution tool that normalizes paired cases, extracts differential evidence, and produces triage reports. Our major findings include: (1) Skill induced functional failures are rarely caused by obviously irrelevant skills; instead, seemingly relevant skills often make the agent incorrectly implement or omit task-required implementation elements. (2) Skill-induced efficiency regressions are not explained by prompt length alone. (3) The largest sources within Excessive Procedure are excessive verification and heavy implementation pipelines, contributing 67 and 30 cases, respectively. This shows that skills often turn validation checklists and construction recipes into mandatory work. Based on our findings, we propose research topics and tooling improvements for safer and more cost-aware skill reuse.

Agent skills, which are reusable, domain-specific knowledge artifacts, have become a popular mechanism for extending LLM-based agents, yet formally benchmarking skill usage performance remains scarce. Existing skill benchmarking efforts focus on overly idealized conditions, where LLMs are directly provided with hand-crafted, narrowly-tailored task-specific skills for each task, whereas in many realistic settings, the LLM agent may have to search for and select relevant skills on its own, and even the closest matching skills may not be well-tailored for the task. In this paper, we conduct the first comprehensive study of skill utility under progressively challenging realistic settings, where agents must retrieve skills from a large collection of 34k real-world skills and may not have access to any hand-curated skills. Our findings reveal that the benefits of skills are fragile: performance gains degrade consistently as settings become more realistic, with pass rates approaching no-skill baselines in the most challenging scenarios. To narrow this gap, we study skill refinement strategies, including query-specific and query-agnostic approaches, and we show that query-specific refinement substantially recovers lost performance when the initial skills are of reasonable relevance and quality. We further demonstrate the generality of retrieval and refinement on Terminal-Bench 2.0, where they improve the pass rate of Claude Opus 4.6 from 57.7% to 65.5%. Our results, consistent across multiple models, highlight both the promise and the current limitations of skills for LLM-based agents. Our code is available at https://github.com/UCSB-NLP-Chang/Skill-Usage.

Large language model (LLM) agents increasingly rely on skills, structured documents that specify when to act, which procedure to follow, and which tools are allowed. Existing evaluations mostly judge the quality of a skill or its contribution to task success, leaving unexamined whether an agent can recognize a relevant skill and apply it on its own. We introduce Skill-Use, a benchmark that evaluates skill use under progressive disclosure, where an agent sees only a skill's name and short description and must retrieve the full procedure before following it. Skill-Use separates three facets of skill use. Trigger measures whether the agent invokes the relevant skill, Compliance measures how faithfully it follows the prescribed procedure, and Boundary measures whether it avoids forbidden operations. A Skill-Use (SU) score combines the three and credits execution only after the skill is triggered. Skill-Use pairs 79 real skills with 177 executable tasks across nine domains, each grounded in real files, run in an isolated Docker sandbox, and scored by a trajectory-based rubric. Evaluating eight LLMs under two agent harnesses, we find that reliable skill use remains out of reach, as the strongest configuration reaches an SU of only 0.613. Triggering and procedural compliance fail as independent bottlenecks, and both scores and model rankings shift with the harness, so skill use behaves as a capability conditioned on the harness rather than a fixed property of the model.