diff --git a/registry/coder-labs/modules/gemini/README.md b/registry/coder-labs/modules/gemini/README.md
index d0a113a02..e31028c75 100644
--- a/registry/coder-labs/modules/gemini/README.md
+++ b/registry/coder-labs/modules/gemini/README.md
@@ -111,6 +111,19 @@ module "gemini" {
 > [!WARNING]
 > YOLO mode automatically approves all tool calls without user confirmation. The agent has access to your machine's file system and terminal. Only enable in trusted, isolated environments.
 
+## State Persistence
+
+AgentAPI can save and restore its conversation state to disk across workspace restarts. This complements `continue` (which resumes the Gemini CLI session) by also preserving the AgentAPI-level context. Enabled by default, requires agentapi >= v0.12.0 (older versions skip it with a warning).
+
+To disable:
+
+```tf
+module "gemini" {
+  # ... other config
+  enable_state_persistence = false
+}
+```
+
 ### Using Vertex AI (Enterprise)
 
 For enterprise users who prefer Google's Vertex AI platform:
diff --git a/registry/coder-labs/modules/gemini/main.tf b/registry/coder-labs/modules/gemini/main.tf
index dbc81bc79..61d33c96e 100644
--- a/registry/coder-labs/modules/gemini/main.tf
+++ b/registry/coder-labs/modules/gemini/main.tf
@@ -39,7 +39,7 @@ variable "icon" {
 variable "folder" {
   type        = string
   description = "The folder to run Gemini in."
-  default     = "/home/coder"
+  default     = "/home/coder/project"
 }
 
 variable "install_gemini" {
@@ -126,6 +126,12 @@ variable "enable_yolo_mode" {
   default     = false
 }
 
+variable "enable_state_persistence" {
+  type        = bool
+  description = "Enable AgentAPI conversation state persistence across restarts."
+  default     = true
+}
+
 resource "coder_env" "gemini_api_key" {
   agent_id = var.agent_id
   name     = "GEMINI_API_KEY"
@@ -177,23 +183,24 @@ EOT
 
 module "agentapi" {
   source  = "registry.coder.com/coder/agentapi/coder"
-  version = "2.0.0"
-
-  agent_id             = var.agent_id
-  folder               = local.folder
-  web_app_slug         = local.app_slug
-  web_app_order        = var.order
-  web_app_group        = var.group
-  web_app_icon         = var.icon
-  web_app_display_name = "Gemini"
-  cli_app_slug         = "${local.app_slug}-cli"
-  cli_app_display_name = "Gemini CLI"
-  module_dir_name      = local.module_dir_name
-  install_agentapi     = var.install_agentapi
-  agentapi_version     = var.agentapi_version
-  pre_install_script   = var.pre_install_script
-  post_install_script  = var.post_install_script
-  install_script       = <<-EOT
+  version = "2.2.0"
+
+  agent_id                 = var.agent_id
+  folder                   = local.folder
+  web_app_slug             = local.app_slug
+  web_app_order            = var.order
+  web_app_group            = var.group
+  web_app_icon             = var.icon
+  web_app_display_name     = "Gemini"
+  cli_app_slug             = "${local.app_slug}-cli"
+  cli_app_display_name     = "Gemini CLI"
+  module_dir_name          = local.module_dir_name
+  install_agentapi         = var.install_agentapi
+  agentapi_version         = var.agentapi_version
+  enable_state_persistence = var.enable_state_persistence
+  pre_install_script       = var.pre_install_script
+  post_install_script      = var.post_install_script
+  install_script           = <<-EOT
     #!/bin/bash
     set -o errexit
     set -o pipefail
@@ -209,20 +216,20 @@ module "agentapi" {
     GEMINI_SYSTEM_PROMPT='${base64encode(var.gemini_system_prompt)}' \
     /tmp/install.sh
   EOT
-  start_script         = <<-EOT
+  start_script             = <<-EOT
      #!/bin/bash
      set -o errexit
      set -o pipefail
 
      echo -n '${base64encode(local.start_script)}' | base64 -d > /tmp/start.sh
      chmod +x /tmp/start.sh
-     GEMINI_API_KEY='${var.gemini_api_key}' \
-     GOOGLE_API_KEY='${var.gemini_api_key}' \
-     GOOGLE_GENAI_USE_VERTEXAI='${var.use_vertexai}' \
-     GEMINI_YOLO_MODE='${var.enable_yolo_mode}' \
-     GEMINI_MODEL='${var.gemini_model}' \
-     GEMINI_START_DIRECTORY='${var.folder}' \
-     GEMINI_TASK_PROMPT='${var.task_prompt}' \
+     GEMINI_API_KEY='${base64encode(var.gemini_api_key)}' \
+     GOOGLE_API_KEY='${base64encode(var.gemini_api_key)}' \
+     GOOGLE_GENAI_USE_VERTEXAI='${base64encode(var.use_vertexai)}' \
+     GEMINI_YOLO_MODE='${base64encode(var.enable_yolo_mode)}' \
+     GEMINI_MODEL='${base64encode(var.gemini_model)}' \
+     GEMINI_START_DIRECTORY='${base64encode(var.folder)}' \
+     GEMINI_TASK_PROMPT='${base64encode(var.task_prompt)}' \
      /tmp/start.sh
    EOT
 }
diff --git a/registry/coder-labs/modules/gemini/main.tftest.hcl b/registry/coder-labs/modules/gemini/main.tftest.hcl
new file mode 100644
index 000000000..96b664322
--- /dev/null
+++ b/registry/coder-labs/modules/gemini/main.tftest.hcl
@@ -0,0 +1,82 @@
+run "test_gemini_basic" {
+  command = plan
+
+  variables {
+    agent_id = "test-agent-123"
+    folder   = "/home/coder/projects"
+  }
+
+  assert {
+    condition     = var.agent_id == "test-agent-123"
+    error_message = "Agent ID variable should be set correctly"
+  }
+
+  assert {
+    condition     = var.folder == "/home/coder/projects"
+    error_message = "Folder variable should be set correctly"
+  }
+
+  assert {
+    condition     = var.install_gemini == true
+    error_message = "install_gemini should default to true"
+  }
+
+  assert {
+    condition     = var.install_agentapi == true
+    error_message = "install_agentapi should default to true"
+  }
+
+  assert {
+    condition     = var.use_vertexai == false
+    error_message = "use_vertexai should default to false"
+  }
+
+  assert {
+    condition     = var.enable_yolo_mode == false
+    error_message = "enable_yolo_mode should default to false"
+  }
+}
+
+run "test_gemini_with_api_key" {
+  command = plan
+
+  variables {
+    agent_id       = "test-agent-456"
+    folder         = "/home/coder"
+    gemini_api_key = "test-api-key-123"
+  }
+
+  assert {
+    condition     = coder_env.gemini_api_key[0].value == "test-api-key-123"
+    error_message = "Gemini API key value should match the input"
+  }
+}
+
+run "test_enable_state_persistence_default" {
+  command = plan
+
+  variables {
+    agent_id = "test-agent"
+    folder   = "/home/coder"
+  }
+
+  assert {
+    condition     = var.enable_state_persistence == true
+    error_message = "enable_state_persistence should default to true"
+  }
+}
+
+run "test_disable_state_persistence" {
+  command = plan
+
+  variables {
+    agent_id                 = "test-agent"
+    folder                   = "/home/coder"
+    enable_state_persistence = false
+  }
+
+  assert {
+    condition     = var.enable_state_persistence == false
+    error_message = "enable_state_persistence should be false when explicitly disabled"
+  }
+}
\ No newline at end of file
diff --git a/registry/coder-labs/modules/gemini/scripts/start.sh b/registry/coder-labs/modules/gemini/scripts/start.sh
index eed550907..e60e18f20 100644
--- a/registry/coder-labs/modules/gemini/scripts/start.sh
+++ b/registry/coder-labs/modules/gemini/scripts/start.sh
@@ -4,6 +4,18 @@ set -o pipefail
 
 source "$HOME"/.bashrc
 
+set -o nounset
+
+GEMINI_API_KEY=$(echo -n "$GEMINI_API_KEY" | base64 -d)
+GOOGLE_API_KEY=$(echo -n "$GOOGLE_API_KEY" | base64 -d)
+GOOGLE_GENAI_USE_VERTEXAI=$(echo -n "$GOOGLE_GENAI_USE_VERTEXAI" | base64 -d)
+GEMINI_YOLO_MODE=$(echo -n "$GEMINI_YOLO_MODE" | base64 -d)
+GEMINI_MODEL=$(echo -n "$GEMINI_MODEL" | base64 -d)
+GEMINI_START_DIRECTORY=$(echo -n "$GEMINI_START_DIRECTORY" | base64 -d)
+GEMINI_TASK_PROMPT=$(echo -n "$GEMINI_TASK_PROMPT" | base64 -d)
+
+set +o nounset
+
 command_exists() {
   command -v "$1" > /dev/null 2>&1
 }
@@ -44,22 +56,6 @@ else
   }
 fi
 
-if [ -n "$GEMINI_TASK_PROMPT" ]; then
-  printf "Running automated task: %s\n" "$GEMINI_TASK_PROMPT"
-  PROMPT="Every step of the way, report tasks to Coder with proper descriptions and statuses. Your task at hand: $GEMINI_TASK_PROMPT"
-  PROMPT_FILE="$MODULE_DIR/prompt.txt"
-  echo -n "$PROMPT" > "$PROMPT_FILE"
-  GEMINI_ARGS=(--prompt-interactive "$PROMPT")
-else
-  printf "Starting Gemini CLI in interactive mode.\n"
-  GEMINI_ARGS=()
-fi
-
-if [ -n "$GEMINI_YOLO_MODE" ] && [ "$GEMINI_YOLO_MODE" = "true" ]; then
-  printf "YOLO mode enabled - will auto-approve all tool calls\n"
-  GEMINI_ARGS+=(--yolo)
-fi
-
 if [ -n "$GEMINI_API_KEY" ] || [ -n "$GOOGLE_API_KEY" ]; then
   if [ -n "$GOOGLE_GENAI_USE_VERTEXAI" ] && [ "$GOOGLE_GENAI_USE_VERTEXAI" = "true" ]; then
     printf "Using Vertex AI with API key\n"
@@ -68,7 +64,32 @@ if [ -n "$GEMINI_API_KEY" ] || [ -n "$GOOGLE_API_KEY" ]; then
   fi
 else
   printf "No API key provided (neither GEMINI_API_KEY nor GOOGLE_API_KEY)\n"
+  exit 1
+fi
+
+if [ -n "$GEMINI_YOLO_MODE" ] && [ "$GEMINI_YOLO_MODE" = "true" ]; then
+  printf "YOLO mode enabled - will auto-approve all tool calls\n"
+  GEMINI_ARGS=(--yolo)
 fi
 
-agentapi server --term-width 67 --term-height 1190 -- \
-  bash -c "$(printf '%q ' gemini "${GEMINI_ARGS[@]}")"
+SESSION_FOLDER_NAME=$(basename "${GEMINI_START_DIRECTORY}")
+if [ -d "$GEMINI_START_DIRECTORY/.gemini/tmp/$SESSION_FOLDER_NAME/chats/" ]; then
+  printf "Existing Gemini chats detected. Starting Gemini CLI in interactive mode with existing chats.\n"
+  GEMINI_ARGS+=(--resume)
+  agentapi server --type gemini --term-width 67 --term-height 1190 -- \
+    bash -c "$(printf '%q ' gemini "${GEMINI_ARGS[@]}")"
+else
+  printf "No existing Gemini chats found. Starting Gemini CLI in interactive mode.\n"
+  if [ -n "$GEMINI_TASK_PROMPT" ]; then
+    printf "Running automated task: %s\n" "$GEMINI_TASK_PROMPT"
+    PROMPT="Every step of the way, report tasks to Coder with proper descriptions and statuses. Your task at hand: $GEMINI_TASK_PROMPT"
+    PROMPT_FILE="$MODULE_DIR/prompt.txt"
+    echo -n "$PROMPT" > "$PROMPT_FILE"
+    GEMINI_ARGS+=(--prompt-interactive "$PROMPT")
+  else
+    printf "Starting Gemini CLI in interactive mode.\n"
+    GEMINI_ARGS+=()
+  fi
+  agentapi server --type gemini --term-width 67 --term-height 1190 -- \
+    bash -c "$(printf '%q ' gemini "${GEMINI_ARGS[@]}")"
+fi