diff --git a/cat-plugins/memory_consolidation/memory_consolidation.py b/cat-plugins/memory_consolidation/memory_consolidation.py
new file mode 100644
index 0000000..9a20cf6
--- /dev/null
+++ b/cat-plugins/memory_consolidation/memory_consolidation.py
@@ -0,0 +1,827 @@
+"""
+Memory Consolidation Plugin for Cheshire Cat
+
+Phase 2: Sleep Consolidation Implementation
+
+Implements human-like memory consolidation:
+1. During the day: Store almost everything temporarily
+2. At night (3 AM): Analyze conversations, keep important, delete trivial
+3. Extract facts for declarative memory
+
+This mimics how human brains consolidate memories during REM sleep.
+"""
+
+from cat.mad_hatter.decorators import hook, plugin, tool
+from cat.mad_hatter.decorators import CatHook
+from datetime import datetime, timedelta
+import json
+import asyncio
+import os
+from typing import List, Dict, Any
+
+print("🌙 [Consolidation Plugin] Loading...")
+
+
+
+# Store consolidation state
+consolidation_state = {
+    'last_run': None,
+    'is_running': False,
+    'stats': {
+        'total_processed': 0,
+        'kept': 0,
+        'deleted': 0,
+        'facts_learned': 0
+    }
+}
+
+
+async def consolidate_user_memories(user_id: str, memories: List[Any], cat) -> Dict[str, Any]:
+    """
+    Analyze all of a user's conversations from the day in ONE LLM call.
+    
+    This is the core intelligence - Miku sees patterns, themes, relationship evolution.
+    """
+    
+    # Build conversation timeline
+    timeline = []
+    for mem in sorted(memories, key=lambda m: m.metadata.get('stored_at', '')):
+        timeline.append({
+            'time': mem.metadata.get('stored_at', ''),
+            'guild': mem.metadata.get('guild_id', 'unknown'),
+            'channel': mem.metadata.get('channel_id', 'unknown'),
+            'content': mem.page_content[:200]  # Truncate for context window
+        })
+    
+    # Build consolidation prompt
+    consolidation_prompt = f"""You are Miku, reviewing your conversations with user {user_id} from today.
+Look at the full timeline and decide what's worth remembering long-term.
+
+Timeline of {len(timeline)} conversations:
+{json.dumps(timeline, indent=2)}
+
+Analyze holistically:
+1. What did you learn about this person today?
+2. Any recurring themes or important moments?
+3. How did your relationship with them evolve?
+4. Which conversations were meaningful vs casual chitchat?
+
+For EACH conversation (by index), decide:
+- keep: true/false (should this go to long-term memory?)
+- importance: 1-10 (10 = life-changing event, 1 = forget immediately)
+- categories: list of ["personal", "preference", "emotional", "event", "relationship"]
+- insights: What did you learn? (for declarative memory)
+- summary: One sentence for future retrieval
+
+Respond with VALID JSON (no extra text):
+{{
+    "day_summary": "One sentence about this person based on today",
+    "relationship_change": "How your relationship evolved (if at all)",
+    "conversations": [
+        {{
+            "index": 0,
+            "keep": true,
+            "importance": 8,
+            "categories": ["personal", "emotional"],
+            "insights": "User struggles with anxiety, needs support",
+            "summary": "User opened up about their anxiety"
+        }},
+        {{
+            "index": 1,
+            "keep": false,
+            "importance": 2,
+            "categories": [],
+            "insights": null,
+            "summary": "Just casual greeting"
+        }}
+    ],
+    "new_facts": [
+        "User has anxiety",
+        "User trusts Miku enough to open up"
+    ]
+}}
+"""
+    
+    try:
+        # Call LLM for analysis
+        print(f"🌙 [Consolidation] Analyzing {len(memories)} memories for {user_id}...")
+        
+        # Use the Cat's LLM
+        from cat.looking_glass.cheshire_cat import CheshireCat
+        response = cat.llm(consolidation_prompt)
+        
+        # Parse JSON response
+        # Remove markdown code blocks if present
+        response = response.strip()
+        if response.startswith('```'):
+            response = response.split('```')[1]
+            if response.startswith('json'):
+                response = response[4:]
+        
+        analysis = json.loads(response)
+        
+        return analysis
+        
+    except json.JSONDecodeError as e:
+        print(f"❌ [Consolidation] Failed to parse LLM response: {e}")
+        print(f"   Response: {response[:200]}...")
+        # Default: keep everything if parsing fails
+        return {
+            "day_summary": "Unable to analyze",
+            "relationship_change": "Unknown",
+            "conversations": [
+                {"index": i, "keep": True, "importance": 5, "categories": [], "insights": None, "summary": "Kept by default"}
+                for i in range(len(memories))
+            ],
+            "new_facts": []
+        }
+    except Exception as e:
+        print(f"❌ [Consolidation] Error during analysis: {e}")
+        return {
+            "day_summary": "Error during analysis",
+            "relationship_change": "Unknown",
+            "conversations": [
+                {"index": i, "keep": True, "importance": 5, "categories": [], "insights": None, "summary": "Kept by default"}
+                for i in range(len(memories))
+            ],
+            "new_facts": []
+        }
+
+
+async def run_consolidation(cat):
+    """
+    Main consolidation task.
+    Run at 3 AM or on-demand via admin endpoint.
+    """
+    
+    if consolidation_state['is_running']:
+        print("⚠️  [Consolidation] Already running, skipping...")
+        return
+    
+    try:
+        consolidation_state['is_running'] = True
+        print(f"🌙 [Consolidation] Starting memory consolidation at {datetime.now()}")
+        
+        # Get episodic memory collection
+        print("📊 [Consolidation] Fetching unconsolidated memories...")
+        
+        episodic_memory = cat.memory.vectors.episodic
+        
+        # Get all points from episodic memory
+        # Qdrant API: scroll through all points
+        try:
+            from qdrant_client.models import Filter, FieldCondition, MatchValue
+            
+            # Query for unconsolidated memories
+            # Filter by consolidated=False
+            filter_condition = Filter(
+                must=[
+                    FieldCondition(
+                        key="metadata.consolidated",
+                        match=MatchValue(value=False)
+                    )
+                ]
+            )
+            
+            # Get all unconsolidated memories
+            results = episodic_memory.client.scroll(
+                collection_name=episodic_memory.collection_name,
+                scroll_filter=filter_condition,
+                limit=1000,  # Max per batch
+                with_payload=True,
+                with_vectors=False
+            )
+            
+            memories = results[0] if results else []
+            
+            print(f"📊 [Consolidation] Found {len(memories)} unconsolidated memories")
+            
+            if len(memories) == 0:
+                print("✨ [Consolidation] No memories to consolidate!")
+                return
+            
+            # Group by user_id
+            memories_by_user = {}
+            for point in memories:
+                # Extract user_id from metadata or ID
+                user_id = point.payload.get('metadata', {}).get('user_id', 'unknown')
+                if user_id == 'unknown':
+                    # Try to extract from ID format
+                    continue
+                    
+                if user_id not in memories_by_user:
+                    memories_by_user[user_id] = []
+                    
+                memories_by_user[user_id].append(point)
+            
+            print(f"📊 [Consolidation] Processing {len(memories_by_user)} users")
+            
+            # Process each user
+            total_kept = 0
+            total_deleted = 0
+            total_processed = 0
+            
+            for user_id, user_memories in memories_by_user.items():
+                print(f"\n👤 [Consolidation] Processing user: {user_id} ({len(user_memories)} memories)")
+                
+                # Simulate consolidation for now
+                # In Phase 2 complete, this will call consolidate_user_memories()
+                for memory in user_memories:
+                    total_processed += 1
+                    
+                    # Simple heuristic for testing
+                    content = memory.payload.get('page_content', '')
+                    
+                    # Delete if very short or common reactions
+                    if len(content.strip()) <= 2 or content.lower().strip() in ['lol', 'k', 'ok', 'okay', 'haha']:
+                        print(f"   🗑️  Deleting: {content[:50]}")
+                        # Delete from Qdrant
+                        episodic_memory.client.delete(
+                            collection_name=episodic_memory.collection_name,
+                            points_selector=[memory.id]
+                        )
+                        total_deleted += 1
+                    else:
+                        print(f"   💾 Keeping: {content[:50]}")
+                        # Mark as consolidated
+                        payload = memory.payload
+                        if 'metadata' not in payload:
+                            payload['metadata'] = {}
+                        payload['metadata']['consolidated'] = True
+                        payload['metadata']['importance'] = 5  # Default importance
+                        
+                        # Update in Qdrant
+                        episodic_memory.client.set_payload(
+                            collection_name=episodic_memory.collection_name,
+                            payload=payload,
+                            points=[memory.id]
+                        )
+                        total_kept += 1
+            
+            consolidation_state['stats']['total_processed'] = total_processed
+            consolidation_state['stats']['kept'] = total_kept
+            consolidation_state['stats']['deleted'] = total_deleted
+            consolidation_state['last_run'] = datetime.now()
+            
+            print(f"\n✨ [Consolidation] Complete! Stats:")
+            print(f"   Processed: {total_processed}")
+            print(f"   Kept: {total_kept}")
+            print(f"   Deleted: {total_deleted}")
+            print(f"   Facts learned: {consolidation_state['stats']['facts_learned']}")
+            
+        except Exception as e:
+            print(f"❌ [Consolidation] Error querying memories: {e}")
+            import traceback
+            traceback.print_exc()
+        
+    except Exception as e:
+        print(f"❌ [Consolidation] Error: {e}")
+        import traceback
+        traceback.print_exc()
+    finally:
+        consolidation_state['is_running'] = False
+
+
+@hook(priority=50)
+def after_cat_bootstrap(cat):
+    """
+    Run after Cat starts up.
+    Schedule nightly consolidation task.
+    """
+    print("🌙 [Memory Consolidation] Plugin loaded")
+    print("   Scheduling nightly consolidation for 3:00 AM")
+    
+    # TODO: Implement scheduler (APScheduler or similar)
+    # For now, just log that we're ready
+    
+    return None
+
+
+
+
+# NOTE: before_cat_sends_message is defined below (line ~438) with merged logic
+
+
+@hook(priority=10)
+def before_cat_recalls_memories(cat):
+    """
+    Retrieve declarative facts BEFORE Cat recalls episodic memories.
+    This ensures facts are available when building the prompt.
+    Note: This hook may not execute in all Cat versions - kept for compatibility.
+    """
+    pass  # Declarative search now happens in agent_prompt_prefix
+
+
+@hook(priority=45)
+def after_cat_recalls_memories(cat):
+    """
+    Hook placeholder for after memory recall.
+    Currently unused but kept for future enhancements.
+    """
+    pass
+
+
+
+
+# Manual trigger via agent_prompt_prefix hook
+@hook(priority=10)
+def agent_prompt_prefix(prefix, cat):
+    """
+    1. Search and inject declarative facts into the prompt
+    2. Handle admin commands like 'consolidate now'
+    """
+    # PART 1: Search for declarative facts and inject into prompt
+    try:
+        user_message_json = cat.working_memory.get('user_message_json', {})
+        user_text = user_message_json.get('text', '').strip()
+        
+        if user_text:
+            # Search declarative memory
+            declarative_memory = cat.memory.vectors.declarative
+            embedding = cat.embedder.embed_query(user_text)
+            
+            results = declarative_memory.recall_memories_from_embedding(
+                embedding=embedding,
+                metadata=None,
+                k=5
+            )
+            
+            if results:
+                high_confidence_facts = []
+                for item in results:
+                    doc = item[0]
+                    score = item[1]
+                    if score > 0.5:  # Only reasonably relevant facts
+                        high_confidence_facts.append(doc.page_content)
+                
+                if high_confidence_facts:
+                    facts_text = "\n\n## 📝 Personal Facts About the User:\n"
+                    for fact in high_confidence_facts:
+                        facts_text += f"- {fact}\n"
+                    facts_text += "\n(Use these facts when answering the user's question)\n"
+                    prefix += facts_text
+                    print(f"✅ [Declarative] Injected {len(high_confidence_facts)} facts into prompt")
+                    
+    except Exception as e:
+        print(f"❌ [Declarative] Error: {e}")
+    
+    # PART 2: Handle consolidation command
+    user_message = cat.working_memory.get('user_message_json', {})
+    user_text = user_message.get('text', '').lower().strip()
+    
+    if user_text in ['consolidate', 'consolidate now', '/consolidate']:
+        print("🔧 [Consolidation] Manual trigger command received!")
+        
+        # Run consolidation synchronously
+        import asyncio
+        try:
+            # Try to get the current event loop
+            loop = asyncio.get_event_loop()
+            if loop.is_running():
+                # We're in an async context, schedule as task
+                print("🔄 [Consolidation] Scheduling async task...")
+                # Run synchronously using run_until_complete won't work here
+                # Instead, we'll use the manual non-async version
+                result = trigger_consolidation_sync(cat)
+            else:
+                # Not in async context, safe to run_until_complete
+                result = loop.run_until_complete(run_consolidation(cat))
+        except RuntimeError:
+            # Fallback to sync version
+            result = trigger_consolidation_sync(cat)
+        
+        # Store the result in working memory so it can be used by other hooks
+        stats = consolidation_state['stats']
+        cat.working_memory['consolidation_triggered'] = True
+        cat.working_memory['consolidation_stats'] = stats
+    
+    return prefix
+
+print("✅ [Consolidation Plugin] agent_prompt_prefix hook registered")
+
+
+# Intercept the response to replace with consolidation stats
+@hook(priority=10)
+def before_cat_sends_message(message, cat):
+    """
+    1. Inject declarative facts into response context
+    2. Replace response if consolidation was triggered
+    """
+    import sys
+    sys.stderr.write("\n� [before_cat_sends_message] Hook executing...\n")
+    sys.stderr.flush()
+    
+    # PART 1: Inject declarative facts
+    try:
+        user_message_json = cat.working_memory.get('user_message_json', {})
+        user_text = user_message_json.get('text', '')
+        
+        if user_text and not cat.working_memory.get('consolidation_triggered', False):
+            # Search declarative memory for relevant facts
+            declarative_memory = cat.memory.vectors.declarative
+            embedding = cat.embedder.embed_query(user_text)
+            
+            results = declarative_memory.recall_memories_from_embedding(
+                embedding=embedding,
+                metadata=None,
+                k=5
+            )
+            
+            if results:
+                sys.stderr.write(f"💡 [Declarative] Found {len(results)} facts!\n")
+                # Results format: [(doc, score, vector, id), ...] - ignore vector and id
+                high_confidence_facts = []
+                for item in results:
+                    doc = item[0]
+                    score = item[1]
+                    if score > 0.5:  # Only reasonably relevant facts
+                        sys.stderr.write(f"   - [{score:.2f}] {doc.page_content}\n")
+                        high_confidence_facts.append(doc.page_content)
+                
+                # Store facts in working memory so agent_prompt_prefix can use them
+                if high_confidence_facts:
+                    cat.working_memory['declarative_facts'] = high_confidence_facts
+                    sys.stderr.write(f"✅ [Declarative] Stored {len(high_confidence_facts)} facts in working memory\n")
+                
+                sys.stderr.flush()
+                
+    except Exception as e:
+        sys.stderr.write(f"❌ [Declarative] Error: {e}\n")
+        sys.stderr.flush()
+    
+    # PART 2: Handle consolidation response replacement
+    if cat.working_memory.get('consolidation_triggered', False):
+        print("📝 [Consolidation] Replacing message with stats")
+        stats = cat.working_memory.get('consolidation_stats', {})
+        output_str = (f"🌙 **Memory Consolidation Complete!**\n\n"
+                     f"📊 **Stats:**\n"
+                     f"- Total processed: {stats.get('total_processed', 0)}\n"
+                     f"- Kept: {stats.get('kept', 0)}\n"
+                     f"- Deleted: {stats.get('deleted', 0)}\n"
+                     f"- Facts learned: {stats.get('facts_learned', 0)}\n")
+        
+        # Clear the flag
+        cat.working_memory['consolidation_triggered'] = False
+        
+        # Modify the message content
+        if hasattr(message, 'content'):
+            message.content = output_str
+        else:
+            message['content'] = output_str
+    
+    # PART 3: Store Miku's response in memory
+    try:
+        # Get Miku's response text
+        if hasattr(message, 'content'):
+            miku_response = message.content
+        elif isinstance(message, dict):
+            miku_response = message.get('content', '')
+        else:
+            miku_response = str(message)
+        
+        if miku_response and len(miku_response) > 3:
+            from datetime import datetime
+            
+            # Prepare metadata
+            metadata = {
+                'source': cat.user_id,
+                'when': datetime.now().timestamp(),
+                'stored_at': datetime.now().isoformat(),
+                'speaker': 'miku',
+                'consolidated': False,
+                'guild_id': cat.working_memory.get('guild_id', 'dm'),
+                'channel_id': cat.working_memory.get('channel_id'),
+            }
+            
+            # Embed the response
+            response_text = f"[Miku]: {miku_response}"
+            vector = cat.embedder.embed_query(response_text)
+            
+            # Store in episodic memory
+            cat.memory.vectors.episodic.add_point(
+                content=response_text,
+                vector=vector,
+                metadata=metadata
+            )
+            
+            print(f"💬 [Miku Memory] Stored response: {miku_response[:50]}...")
+            
+    except Exception as e:
+        print(f"❌ [Miku Memory] Error: {e}")
+    
+    return message
+
+print("✅ [Consolidation Plugin] before_cat_sends_message hook registered")
+
+
+def trigger_consolidation_sync(cat):
+    """
+    Synchronous version of consolidation for use in hooks.
+    """
+    from qdrant_client import QdrantClient
+    
+    print("🌙 [Consolidation] Starting synchronous consolidation...")
+    
+    # Connect to Qdrant
+    qdrant_host = os.getenv('QDRANT_HOST', 'localhost')
+    qdrant_port = int(os.getenv('QDRANT_PORT', 6333))
+    
+    client = QdrantClient(host=qdrant_host, port=qdrant_port)
+    
+    # Query all unconsolidated memories
+    result = client.scroll(
+        collection_name='episodic',
+        scroll_filter={
+            "must_not": [
+                {"key": "metadata.consolidated", "match": {"value": True}}
+            ]
+        },
+        limit=10000,
+        with_payload=True,
+        with_vectors=False
+    )
+    
+    memories = result[0]
+    print(f"📊 [Consolidation] Found {len(memories)} unconsolidated memories")
+    
+    if not memories:
+        consolidation_state['stats'] = {
+            'total_processed': 0,
+            'kept': 0,
+            'deleted': 0,
+            'facts_learned': 0
+        }
+        return
+    
+    #Apply heuristic-based consolidation
+    to_delete = []
+    to_mark_consolidated = []
+    user_messages_for_facts = []  # Track USER messages separately for fact extraction
+    
+    for point in memories:
+        content = point.payload.get('page_content', '').strip()
+        content_lower = content.lower()
+        metadata = point.payload.get('metadata', {})
+        
+        # Check if this is a Miku message
+        is_miku_message = (
+            metadata.get('speaker') == 'miku' or 
+            content.startswith('[Miku]:')
+        )
+        
+        # Trivial patterns (expanded list)
+        trivial_patterns = [
+            'lol', 'k', 'ok', 'okay', 'haha', 'lmao', 'xd', 'rofl', 'lmfao',
+            'brb', 'gtg', 'afk', 'ttyl', 'lmk', 'idk', 'tbh', 'imo', 'imho',
+            'omg', 'wtf', 'fyi', 'btw', 'nvm', 'jk', 'ikr', 'smh',
+            'hehe', 'heh', 'gg', 'wp', 'gz', 'gj', 'ty', 'thx', 'np', 'yw',
+            'nice', 'cool', 'neat', 'wow', 'yep', 'nope', 'yeah', 'nah'
+        ]
+        
+        is_trivial = False
+        
+        # Check if it matches trivial patterns
+        if len(content_lower) <= 3 and content_lower in trivial_patterns:
+            is_trivial = True
+        elif content_lower in trivial_patterns:
+            is_trivial = True
+        
+        if is_trivial:
+            to_delete.append(point.id)
+        else:
+            to_mark_consolidated.append(point.id)
+            # Only add USER messages for fact extraction (not Miku's responses)
+            if not is_miku_message:
+                user_messages_for_facts.append(point.id)
+    
+    # Delete trivial memories
+    if to_delete:
+        client.delete(
+            collection_name='episodic',
+            points_selector=to_delete
+        )
+        print(f"🗑️ [Consolidation] Deleted {len(to_delete)} trivial memories")
+    
+    # Mark important memories as consolidated
+    if to_mark_consolidated:
+        for point_id in to_mark_consolidated:
+            # Get the point
+            point = client.retrieve(
+                collection_name='episodic',
+                ids=[point_id]
+            )[0]
+            
+            # Update metadata
+            payload = point.payload
+            if 'metadata' not in payload:
+                payload['metadata'] = {}
+            payload['metadata']['consolidated'] = True
+            
+            # Update the point
+            client.set_payload(
+                collection_name='episodic',
+                payload=payload,
+                points=[point_id]
+            )
+        
+        print(f"✅ [Consolidation] Marked {len(to_mark_consolidated)} memories as consolidated")
+    
+    # Update stats
+    facts_extracted = 0
+    
+    # Extract declarative facts from USER messages only (not Miku's responses)
+    print(f"🔍 [Consolidation] Extracting declarative facts from {len(user_messages_for_facts)} user messages...")
+    facts_extracted = extract_and_store_facts(client, user_messages_for_facts, cat)
+    print(f"📝 [Consolidation] Extracted and stored {facts_extracted} declarative facts")
+    
+    consolidation_state['stats'] = {
+        'total_processed': len(memories),
+        'kept': len(to_mark_consolidated),
+        'deleted': len(to_delete),
+        'facts_learned': facts_extracted
+    }
+    
+    print("✅ [Consolidation] Synchronous consolidation complete!")
+    return True
+
+
+def extract_and_store_facts(client, memory_ids, cat):
+    """Extract declarative facts from memories using LLM and store them."""
+    import uuid
+    from sentence_transformers import SentenceTransformer
+    
+    if not memory_ids:
+        return 0
+    
+    # Get memories
+    memories = client.retrieve(collection_name='episodic', ids=memory_ids)
+    
+    # Initialize embedder
+    embedder = SentenceTransformer('BAAI/bge-large-en-v1.5')
+    
+    facts_stored = 0
+    
+    # Process memories in batches to avoid overwhelming the LLM
+    batch_size = 5
+    for i in range(0, len(memories), batch_size):
+        batch = memories[i:i+batch_size]
+        
+        # Combine batch messages for LLM analysis
+        conversation_context = "\n".join([
+            f"- {mem.payload.get('page_content', '')}"
+            for mem in batch
+        ])
+        
+        # Use LLM to extract facts
+        extraction_prompt = f"""Analyze these user messages and extract ONLY factual personal information.
+
+User messages:
+{conversation_context}
+
+Extract facts in this exact format (one per line):
+- The user's name is [name]
+- The user is [age] years old
+- The user lives in [location]
+- The user works as [job]
+- The user is allergic to [allergen]
+- The user's favorite color is [color]
+- The user enjoys [hobby/activity]
+- The user prefers [preference]
+
+IMPORTANT:
+- Only include facts that are CLEARLY stated
+- Use the EXACT format shown above
+- If no facts found, respond with: "No facts found"
+- Do not include greetings, questions, or opinions
+"""
+        
+        try:
+            # Call LLM
+            response = cat.llm(extraction_prompt)
+            
+            print(f"🤖 [LLM Extract] Response:\n{response[:200]}...")
+            
+            # Parse LLM response for facts
+            lines = response.strip().split('\n')
+            for line in lines:
+                line = line.strip()
+                
+                # Skip empty lines, headers, or "no facts" responses
+                if not line or line.lower().startswith(('no facts', '#', 'user messages:', '```')):
+                    continue
+                
+                # Extract facts that start with "- The user"
+                if line.startswith('- The user'):
+                    fact_text = line[2:].strip()  # Remove "- " prefix
+                    
+                    # Determine fact type from the sentence structure
+                    fact_type = 'general'
+                    fact_value = fact_text
+                    
+                    if "'s name is" in fact_text:
+                        fact_type = 'name'
+                        fact_value = fact_text.split("'s name is")[-1].strip()
+                    elif " is " in fact_text and " years old" in fact_text:
+                        fact_type = 'age'
+                        fact_value = fact_text.split(" is ")[1].split(" years")[0].strip()
+                    elif "lives in" in fact_text:
+                        fact_type = 'location'
+                        fact_value = fact_text.split("lives in")[-1].strip()
+                    elif "works as" in fact_text:
+                        fact_type = 'job'
+                        fact_value = fact_text.split("works as")[-1].strip()
+                    elif "allergic to" in fact_text:
+                        fact_type = 'allergy'
+                        fact_value = fact_text.split("allergic to")[-1].strip()
+                    elif "favorite color is" in fact_text:
+                        fact_type = 'favorite_color'
+                        fact_value = fact_text.split("favorite color is")[-1].strip()
+                    elif "enjoys" in fact_text:
+                        fact_type = 'hobby'
+                        fact_value = fact_text.split("enjoys")[-1].strip()
+                    elif "prefers" in fact_text:
+                        fact_type = 'preference'
+                        fact_value = fact_text.split("prefers")[-1].strip()
+                    
+                    # Generate embedding for the fact
+                    fact_embedding = embedder.encode(fact_text).tolist()
+                    
+                    # Store in declarative collection
+                    point_id = str(uuid.uuid4())
+                    
+                    client.upsert(
+                        collection_name='declarative',
+                        points=[{
+                            'id': point_id,
+                            'vector': fact_embedding,
+                            'payload': {
+                                'page_content': fact_text,
+                                'metadata': {
+                                    'source': 'memory_consolidation',
+                                    'when': batch[0].payload.get('metadata', {}).get('when', 0),
+                                    'fact_type': fact_type,
+                                    'fact_value': fact_value,
+                                    'user_id': 'global'
+                                }
+                            }
+                        }]
+                    )
+                    
+                    facts_stored += 1
+                    print(f"✅ [Fact Stored] {fact_text}")
+                    
+        except Exception as e:
+            print(f"❌ [LLM Extract] Error: {e}")
+            import traceback
+            traceback.print_exc()
+    
+    return facts_stored
+
+
+def trigger_consolidation_manual(cat):
+    """
+    Manually trigger consolidation for testing.
+    Can be called via admin API or command.
+    """
+    print("🔧 [Consolidation] Manual trigger received")
+    
+    # Run consolidation
+    import asyncio
+    try:
+        # Create event loop if needed
+        loop = asyncio.get_event_loop()
+    except RuntimeError:
+        loop = asyncio.new_event_loop()
+        asyncio.set_event_loop(loop)
+    
+    loop.run_until_complete(run_consolidation(cat))
+    
+    return consolidation_state
+
+
+# Plugin metadata
+__version__ = "1.0.0"
+__description__ = "Sleep consolidation - analyze memories nightly, keep important, delete trivial"
+
+print("✅ [Consolidation Plugin] after_cat_recalls_memories hook registered")
+
+
+# Tool for manual consolidation trigger
+@tool(return_direct=True)
+def consolidate_memories(tool_input, cat):
+    """Use this tool to consolidate memories. This will analyze all recent memories, delete trivial ones, and extract important facts. Input is always an empty string."""
+    
+    print("🔧 [Consolidation] Tool called!")
+    
+    # Run consolidation synchronously
+    result = trigger_consolidation_sync(cat)
+    
+    # Return stats
+    stats = consolidation_state['stats']
+    return (f"🌙 **Memory Consolidation Complete!**\n\n"
+           f"📊 **Stats:**\n"
+           f"- Total processed: {stats['total_processed']}\n"
+           f"- Kept: {stats['kept']}\n"
+           f"- Deleted: {stats['deleted']}\n"
+           f"- Facts learned: {stats['facts_learned']}\n")
+
diff --git a/cat-plugins/memory_consolidation/plugin.json b/cat-plugins/memory_consolidation/plugin.json
new file mode 100644
index 0000000..57584d6
--- /dev/null
+++ b/cat-plugins/memory_consolidation/plugin.json
@@ -0,0 +1,10 @@
+{
+  "name": "Memory Consolidation",
+  "description": "Sleep consolidation plugin - analyze memories nightly, keep important, delete trivial (mimics human REM sleep)",
+  "author_name": "Miku Bot Team",
+  "author_url": "",
+  "plugin_url": "",
+  "tags": "memory, consolidation, sleep, intelligence",
+  "thumb": "",
+  "version": "1.0.0"
+}
diff --git a/cat-plugins/memory_consolidation/requirements.txt b/cat-plugins/memory_consolidation/requirements.txt
new file mode 100644
index 0000000..f998fbc
--- /dev/null
+++ b/cat-plugins/memory_consolidation/requirements.txt
@@ -0,0 +1 @@
+sentence-transformers>=2.2.0
diff --git a/cat-plugins/memory_consolidation/settings.json b/cat-plugins/memory_consolidation/settings.json
new file mode 100644
index 0000000..0967ef4
--- /dev/null
+++ b/cat-plugins/memory_consolidation/settings.json
@@ -0,0 +1 @@
+{}
diff --git a/test_full_pipeline.py b/test_full_pipeline.py
new file mode 100644
index 0000000..1214449
--- /dev/null
+++ b/test_full_pipeline.py
@@ -0,0 +1,196 @@
+#!/usr/bin/env python3
+"""
+Full Pipeline Test for Memory Consolidation System
+Tests all phases: Storage → Consolidation → Fact Extraction → Recall
+"""
+
+import requests
+import time
+import json
+
+BASE_URL = "http://localhost:1865"
+
+def send_message(text):
+    """Send a message to Miku and get response"""
+    resp = requests.post(f"{BASE_URL}/message", json={"text": text})
+    return resp.json()
+
+def get_qdrant_count(collection):
+    """Get count of items in Qdrant collection"""
+    resp = requests.post(
+        f"http://localhost:6333/collections/{collection}/points/scroll",
+        json={"limit": 1000, "with_payload": False, "with_vector": False}
+    )
+    return len(resp.json()["result"]["points"])
+
+print("=" * 70)
+print("🧪 FULL PIPELINE TEST - Memory Consolidation System")
+print("=" * 70)
+
+# TEST 1: Trivial Message Filtering
+print("\n📋 TEST 1: Trivial Message Filtering")
+print("-" * 70)
+
+trivial_messages = ["lol", "k", "ok", "haha", "xd"]
+important_message = "My name is Alex and I live in Seattle"
+
+print("Sending trivial messages (should be filtered out)...")
+for msg in trivial_messages:
+    send_message(msg)
+    time.sleep(0.5)
+
+print("Sending important message...")
+send_message(important_message)
+time.sleep(1)
+
+episodic_count = get_qdrant_count("episodic")
+print(f"\n✅ Episodic memories stored: {episodic_count}")
+if episodic_count < len(trivial_messages):
+    print("   ✓ Trivial filtering working! (some messages were filtered)")
+else:
+    print("   ⚠️  Trivial filtering may not be active")
+
+# TEST 2: Miku's Response Storage
+print("\n📋 TEST 2: Miku's Response Storage")
+print("-" * 70)
+
+print("Sending message and checking if Miku's response is stored...")
+resp = send_message("Tell me a very short fact about music")
+miku_said = resp["content"]
+print(f"Miku said: {miku_said[:80]}...")
+time.sleep(2)
+
+# Check for Miku's messages in episodic
+resp = requests.post(
+    "http://localhost:6333/collections/episodic/points/scroll",
+    json={
+        "limit": 100,
+        "with_payload": True,
+        "with_vector": False,
+        "filter": {"must": [{"key": "metadata.speaker", "match": {"value": "miku"}}]}
+    }
+)
+miku_messages = resp.json()["result"]["points"]
+print(f"\n✅ Miku's messages in memory: {len(miku_messages)}")
+if miku_messages:
+    print(f"   Example: {miku_messages[0]['payload']['page_content'][:60]}...")
+    print("   ✓ Bidirectional memory working!")
+else:
+    print("   ⚠️  Miku's responses not being stored")
+
+# TEST 3: Add Rich Personal Information
+print("\n📋 TEST 3: Adding Personal Information")
+print("-" * 70)
+
+personal_info = [
+    "My name is Sarah Chen",
+    "I'm 28 years old",
+    "I work as a data scientist at Google",
+    "My favorite color is blue",
+    "I love playing piano",
+    "I'm allergic to peanuts",
+    "I live in Tokyo, Japan",
+    "My hobbies include photography and hiking"
+]
+
+print(f"Adding {len(personal_info)} messages with personal information...")
+for info in personal_info:
+    send_message(info)
+    time.sleep(0.5)
+
+episodic_after = get_qdrant_count("episodic")
+print(f"\n✅ Total episodic memories: {episodic_after}")
+print(f"   ({episodic_after - episodic_count} new memories added)")
+
+# TEST 4: Memory Consolidation
+print("\n📋 TEST 4: Memory Consolidation & Fact Extraction")
+print("-" * 70)
+
+print("Triggering consolidation...")
+resp = send_message("consolidate now")
+consolidation_result = resp["content"]
+print(f"\n{consolidation_result}")
+
+time.sleep(2)
+
+# Check declarative facts
+declarative_count = get_qdrant_count("declarative")
+print(f"\n✅ Declarative facts extracted: {declarative_count}")
+
+if declarative_count > 0:
+    # Show sample facts
+    resp = requests.post(
+        "http://localhost:6333/collections/declarative/points/scroll",
+        json={"limit": 5, "with_payload": True, "with_vector": False}
+    )
+    facts = resp.json()["result"]["points"]
+    print("\nSample facts:")
+    for i, fact in enumerate(facts[:5], 1):
+        print(f"   {i}. {fact['payload']['page_content']}")
+
+# TEST 5: Fact Recall
+print("\n📋 TEST 5: Declarative Fact Recall")
+print("-" * 70)
+
+queries = [
+    "What is my name?",
+    "How old am I?",
+    "Where do I work?",
+    "What's my favorite color?",
+    "What am I allergic to?"
+]
+
+print("Testing fact recall with queries...")
+correct_recalls = 0
+for query in queries:
+    resp = send_message(query)
+    answer = resp["content"]
+    print(f"\n❓ {query}")
+    print(f"💬 Miku: {answer[:150]}...")
+    
+    # Basic heuristic: check if answer contains likely keywords
+    keywords = {
+        "What is my name?": ["Sarah", "Chen"],
+        "How old am I?": ["28"],
+        "Where do I work?": ["Google", "data scientist"],
+        "What's my favorite color?": ["blue"],
+        "What am I allergic to?": ["peanut"]
+    }
+    
+    if any(kw.lower() in answer.lower() for kw in keywords[query]):
+        print("   ✓ Correct recall!")
+        correct_recalls += 1
+    else:
+        print("   ⚠️  May not have recalled correctly")
+    
+    time.sleep(1)
+
+print(f"\n✅ Fact recall accuracy: {correct_recalls}/{len(queries)} ({correct_recalls/len(queries)*100:.0f}%)")
+
+# TEST 6: Conversation History Recall
+print("\n📋 TEST 6: Conversation History (Episodic) Recall")
+print("-" * 70)
+
+print("Asking about conversation history...")
+resp = send_message("What have we talked about today?")
+summary = resp["content"]
+print(f"💬 Miku's summary:\n{summary}")
+
+# Final Summary
+print("\n" + "=" * 70)
+print("📊 FINAL SUMMARY")
+print("=" * 70)
+print(f"✅ Episodic memories: {get_qdrant_count('episodic')}")
+print(f"✅ Declarative facts: {declarative_count}")
+print(f"✅ Miku's messages stored: {len(miku_messages)}")
+print(f"✅ Fact recall accuracy: {correct_recalls}/{len(queries)}")
+
+# Overall verdict
+if declarative_count >= 5 and correct_recalls >= 3:
+    print("\n🎉 PIPELINE TEST: PASS")
+    print("   All major components working correctly!")
+else:
+    print("\n⚠️  PIPELINE TEST: PARTIAL PASS")
+    print("   Some components may need adjustment")
+
+print("\n" + "=" * 70)