diff --git a/pkg/mcp/parallel/registry.go b/pkg/mcp/parallel/registry.go
index e2658639..faae6365 100644
--- a/pkg/mcp/parallel/registry.go
+++ b/pkg/mcp/parallel/registry.go
@@ -4,7 +4,9 @@ import (
 	"context"
 	"encoding/json"
 	"fmt"
+	"os"
 	"os/exec"
+	"strings"
 	"sync"
 
 	sdkmcp "github.com/modelcontextprotocol/go-sdk/mcp"
@@ -150,18 +152,38 @@ func prodSpawner(spec UpstreamSpec) (*sdkmcp.ClientSession, func() error, error)
 	return sess, closeFn, nil
 }
 
-// buildUpstreamCommand assembles the *exec.Cmd for a given upstream. We
-// populate cmd.Env explicitly from the spec so the broker process's own
-// env doesn't leak into upstreams (each upstream's env block in mcp.json
-// is the full intended environment for that subprocess).
+// buildUpstreamCommand assembles the *exec.Cmd for a given upstream. The
+// subprocess gets the broker's own environment with the spec's env block
+// layered on top, which is the same shape Claude Code gives an MCP it
+// launches directly: PATH, HOME and the rest come from the parent so an
+// upstream that shells out (git fetch, kubectl) can find its binaries, and
+// the spec wins on conflict so each upstream keeps its own telemetry tool
+// prefix instead of the broker's. The broker's upstream registry blob is
+// dropped: it is large, carries every upstream's secrets, and means nothing
+// to a child.
 func buildUpstreamCommand(spec UpstreamSpec) *exec.Cmd {
 	cmd := exec.Command(spec.Command, spec.Args...)
-	if len(spec.Env) > 0 {
-		env := make([]string, 0, len(spec.Env))
-		for k, v := range spec.Env {
-			env = append(env, k+"="+v)
+	cmd.Env = upstreamEnv(os.Environ(), spec.Env)
+	return cmd
+}
+
+func upstreamEnv(parent []string, overrides map[string]string) []string {
+	env := make([]string, 0, len(parent)+len(overrides))
+	for _, kv := range parent {
+		key, _, _ := strings.Cut(kv, "=")
+		if key == EnvUpstreams {
+			continue
+		}
+		if _, overridden := overrides[key]; overridden {
+			continue
 		}
-		cmd.Env = env
+		env = append(env, kv)
 	}
-	return cmd
+	for k, v := range overrides {
+		if k == EnvUpstreams {
+			continue
+		}
+		env = append(env, k+"="+v)
+	}
+	return env
 }
diff --git a/pkg/mcp/parallel/registry_test.go b/pkg/mcp/parallel/registry_test.go
index de7dcb8f..95a5a714 100644
--- a/pkg/mcp/parallel/registry_test.go
+++ b/pkg/mcp/parallel/registry_test.go
@@ -3,9 +3,11 @@ package parallel
 import (
 	"context"
 	"encoding/json"
+	"strings"
 	"testing"
 
 	sdkmcp "github.com/modelcontextprotocol/go-sdk/mcp"
+	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 )
 
@@ -90,3 +92,33 @@ func TestBuildUpstreamCommand_PopulatesArgsAndEnv(t *testing.T) {
 	require.Equal(t, []string{"/bin/echo", "a", "b"}, cmd.Args)
 	require.Contains(t, cmd.Env, "K=V")
 }
+
+// Upstreams shell out (the git MCP runs `git fetch`), so they need the
+// broker's PATH, HOME and friends exactly as they would when Claude Code
+// launches them directly. The spec's env block layers on top and wins on
+// conflict, so an upstream keeps its own telemetry tool prefix rather than
+// inheriting the broker's.
+func TestBuildUpstreamCommand_InheritsBrokerEnvWithSpecOverride(t *testing.T) {
+	t.Setenv("PATH", "/parallel-test-bin")
+	t.Setenv("TRIAGENT_MCP_TELEMETRY_TOOL_PREFIX", "mcp__triagent-parallel__")
+	t.Setenv("TRIAGENT_MCP_PARALLEL_UPSTREAMS", "{}")
+
+	spec := UpstreamSpec{Command: "/bin/echo", Env: map[string]string{
+		"TRIAGENT_MCP_TELEMETRY_TOOL_PREFIX": "mcp__triagent-git-alerts__",
+		EnvUpstreams:                         "{\"from-spec\":{}}",
+	}}
+	cmd := buildUpstreamCommand(spec)
+
+	assert.Contains(t, cmd.Env, "PATH=/parallel-test-bin")
+	assert.Contains(t, cmd.Env, "TRIAGENT_MCP_TELEMETRY_TOOL_PREFIX=mcp__triagent-git-alerts__")
+	assert.NotContains(t, cmd.Env, "TRIAGENT_MCP_TELEMETRY_TOOL_PREFIX=mcp__triagent-parallel__")
+	for _, kv := range cmd.Env {
+		assert.False(t, strings.HasPrefix(kv, EnvUpstreams+"="), "upstream registry blob must not leak into upstreams from the broker env or the spec: %s", kv)
+	}
+}
+
+func TestBuildUpstreamCommand_EmptySpecEnvStillInheritsBrokerEnv(t *testing.T) {
+	t.Setenv("PATH", "/parallel-test-bin")
+	cmd := buildUpstreamCommand(UpstreamSpec{Command: "/bin/echo"})
+	assert.Contains(t, cmd.Env, "PATH=/parallel-test-bin")
+}