diff --git a/registry/coder/modules/claude-code/README.md b/registry/coder/modules/claude-code/README.md
index 657435f96..11172010f 100644
--- a/registry/coder/modules/claude-code/README.md
+++ b/registry/coder/modules/claude-code/README.md
@@ -13,7 +13,7 @@ Run the [Claude Code](https://docs.anthropic.com/en/docs/agents-and-tools/claude
 ```tf
 module "claude-code" {
   source         = "registry.coder.com/coder/claude-code/coder"
-  version        = "4.2.6"
+  version        = "4.2.7"
   agent_id       = coder_agent.main.id
   workdir        = "/home/coder/project"
   claude_api_key = "xxxx-xxxxx-xxxx"
@@ -45,7 +45,7 @@ This example shows how to configure the Claude Code module to run the agent behi
 ```tf
 module "claude-code" {
   source                           = "dev.registry.coder.com/coder/claude-code/coder"
-  version                          = "4.2.6"
+  version                          = "4.2.7"
   agent_id                         = coder_agent.main.id
   workdir                          = "/home/coder/project"
   enable_boundary                  = true
@@ -72,7 +72,7 @@ data "coder_parameter" "ai_prompt" {
 
 module "claude-code" {
   source   = "registry.coder.com/coder/claude-code/coder"
-  version  = "4.2.6"
+  version  = "4.2.7"
   agent_id = coder_agent.main.id
   workdir  = "/home/coder/project"
 
@@ -92,10 +92,9 @@ module "claude-code" {
   {
     "mcpServers": {
       "my-custom-tool": {
-        "command": "my-tool-server"
+        "command": "my-tool-server",
         "args": ["--port", "8080"]
       }
-
     }
   }
   EOF
@@ -109,7 +108,7 @@ Run and configure Claude Code as a standalone CLI in your workspace.
 ```tf
 module "claude-code" {
   source              = "registry.coder.com/coder/claude-code/coder"
-  version             = "4.2.6"
+  version             = "4.2.7"
   agent_id            = coder_agent.main.id
   workdir             = "/home/coder/project"
   install_claude_code = true
@@ -131,7 +130,7 @@ variable "claude_code_oauth_token" {
 
 module "claude-code" {
   source                  = "registry.coder.com/coder/claude-code/coder"
-  version                 = "4.2.6"
+  version                 = "4.2.7"
   agent_id                = coder_agent.main.id
   workdir                 = "/home/coder/project"
   claude_code_oauth_token = var.claude_code_oauth_token
@@ -204,7 +203,7 @@ resource "coder_env" "bedrock_api_key" {
 
 module "claude-code" {
   source   = "registry.coder.com/coder/claude-code/coder"
-  version  = "4.2.6"
+  version  = "4.2.7"
   agent_id = coder_agent.main.id
   workdir  = "/home/coder/project"
   model    = "global.anthropic.claude-sonnet-4-5-20250929-v1:0"
@@ -261,7 +260,7 @@ resource "coder_env" "google_application_credentials" {
 
 module "claude-code" {
   source   = "registry.coder.com/coder/claude-code/coder"
-  version  = "4.2.6"
+  version  = "4.2.7"
   agent_id = coder_agent.main.id
   workdir  = "/home/coder/project"
   model    = "claude-sonnet-4@20250514"
diff --git a/registry/coder/modules/claude-code/main.test.ts b/registry/coder/modules/claude-code/main.test.ts
index 6e37501da..c62493cf8 100644
--- a/registry/coder/modules/claude-code/main.test.ts
+++ b/registry/coder/modules/claude-code/main.test.ts
@@ -39,9 +39,11 @@ interface SetupProps {
   agentapiMockScript?: string;
 }
 
-const setup = async (props?: SetupProps): Promise<{ id: string }> => {
+const setup = async (
+  props?: SetupProps,
+): Promise<{ id: string; coderEnvVars: Record<string, string> }> => {
   const projectDir = "/home/coder/project";
-  const { id } = await setupUtil({
+  const { id, coderEnvVars } = await setupUtil({
     moduleDir: import.meta.dir,
     moduleVariables: {
       install_claude_code: props?.skipClaudeMock ? "true" : "false",
@@ -61,7 +63,7 @@ const setup = async (props?: SetupProps): Promise<{ id: string }> => {
       content: await loadTestFile(import.meta.dir, "claude-mock.sh"),
     });
   }
-  return { id };
+  return { id, coderEnvVars };
 };
 
 setDefaultTimeout(60 * 1000);
@@ -79,14 +81,14 @@ describe("claude-code", async () => {
 
   test("install-claude-code-version", async () => {
     const version_to_install = "1.0.40";
-    const { id } = await setup({
+    const { id, coderEnvVars } = await setup({
       skipClaudeMock: true,
       moduleVariables: {
         install_claude_code: "true",
         claude_code_version: version_to_install,
       },
     });
-    await execModuleScript(id);
+    await execModuleScript(id, coderEnvVars);
     const resp = await execContainer(id, [
       "bash",
       "-c",
@@ -96,14 +98,14 @@ describe("claude-code", async () => {
   });
 
   test("check-latest-claude-code-version-works", async () => {
-    const { id } = await setup({
+    const { id, coderEnvVars } = await setup({
       skipClaudeMock: true,
       skipAgentAPIMock: true,
       moduleVariables: {
         install_claude_code: "true",
       },
     });
-    await execModuleScript(id);
+    await execModuleScript(id, coderEnvVars);
     await expectAgentAPIStarted(id);
   });
 
@@ -133,13 +135,13 @@ describe("claude-code", async () => {
         },
       },
     });
-    const { id } = await setup({
+    const { id, coderEnvVars } = await setup({
       skipClaudeMock: true,
       moduleVariables: {
         mcp: mcpConfig,
       },
     });
-    await execModuleScript(id);
+    await execModuleScript(id, coderEnvVars);
 
     const resp = await readFileContainer(id, "/home/coder/.claude.json");
     expect(resp).toContain("test-cmd");
diff --git a/registry/coder/modules/claude-code/main.tf b/registry/coder/modules/claude-code/main.tf
index bef2a219e..8531a9f9a 100644
--- a/registry/coder/modules/claude-code/main.tf
+++ b/registry/coder/modules/claude-code/main.tf
@@ -288,6 +288,12 @@ resource "coder_env" "disable_autoupdater" {
   value    = "1"
 }
 
+resource "coder_env" "claude_binary_path" {
+  agent_id = var.agent_id
+  name     = "PATH"
+  value    = "$HOME/.local/bin:$PATH"
+}
+
 locals {
   # we have to trim the slash because otherwise coder exp mcp will
   # set up an invalid claude config
diff --git a/registry/coder/modules/claude-code/scripts/install.sh b/registry/coder/modules/claude-code/scripts/install.sh
index ba4420fa3..15981e8b5 100644
--- a/registry/coder/modules/claude-code/scripts/install.sh
+++ b/registry/coder/modules/claude-code/scripts/install.sh
@@ -1,10 +1,5 @@
 #!/bin/bash
 
-if [ -f "$HOME/.bashrc" ]; then
-  source "$HOME"/.bashrc
-fi
-
-# Set strict error handling AFTER sourcing bashrc to avoid unbound variable errors from user dotfiles
 set -euo pipefail
 
 BOLD='\033[0;1m'
@@ -45,11 +40,6 @@ function install_claude_code_cli() {
     if [ $CURL_EXIT -ne 0 ]; then
       echo "Claude Code installer failed with exit code $$CURL_EXIT"
     fi
-
-    # Ensure binaries are discoverable.
-    echo "Creating a symlink for claude"
-    sudo ln -s /home/coder/.local/bin/claude /usr/local/bin/claude
-
     echo "Installed Claude Code successfully. Version: $(claude --version || echo 'unknown')"
   else
     echo "Skipping Claude Code installation as per configuration."
diff --git a/registry/coder/modules/claude-code/scripts/start.sh b/registry/coder/modules/claude-code/scripts/start.sh
index 93ff4f723..ebca736cc 100644
--- a/registry/coder/modules/claude-code/scripts/start.sh
+++ b/registry/coder/modules/claude-code/scripts/start.sh
@@ -1,14 +1,7 @@
 #!/bin/bash
 
-if [ -f "$HOME/.bashrc" ]; then
-  source "$HOME"/.bashrc
-fi
-
-# Set strict error handling AFTER sourcing bashrc to avoid unbound variable errors from user dotfiles
 set -euo pipefail
 
-export PATH="$HOME/.local/bin:$PATH"
-
 command_exists() {
   command -v "$1" > /dev/null 2>&1
 }