diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index 29358176..87ddb815 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -4,6 +4,7 @@
 
 ### Added
 
+- Added `PI_CODING_AGENT_SESSION_DIR` as an environment equivalent to `--session-dir` ([#4027](https://github.com/badlogic/pi-mono/issues/4027)).
 - Added `message_end` extension result support for replacing finalized messages, enabling extensions to override assistant usage cost ([#3982](https://github.com/badlogic/pi-mono/issues/3982)).
 - Added top-level `name` support to `pi.registerProvider()` so extension-registered providers can show a friendly name in `/login` ([#3956](https://github.com/badlogic/pi-mono/issues/3956)).
 - Added `ctx.ui.getEditorComponent()` so extensions can wrap the currently configured custom editor factory ([#3935](https://github.com/badlogic/pi-mono/issues/3935)).
diff --git a/packages/coding-agent/README.md b/packages/coding-agent/README.md
index fe3f06b1..5a29f6e0 100644
--- a/packages/coding-agent/README.md
+++ b/packages/coding-agent/README.md
@@ -619,6 +619,7 @@ pi --thinking high "Solve this complex problem"
 | Variable | Description |
 |----------|-------------|
 | `PI_CODING_AGENT_DIR` | Override config directory (default: `~/.pi/agent`) |
+| `PI_CODING_AGENT_SESSION_DIR` | Override session storage directory (overridden by `--session-dir`) |
 | `PI_PACKAGE_DIR` | Override package directory (useful for Nix/Guix where store paths tokenize poorly) |
 | `PI_OFFLINE` | Disable startup network operations, including update checks, package update checks, and install/update telemetry |
 | `PI_SKIP_VERSION_CHECK` | Skip the Pi version update check at startup. This prevents the `pi.dev` latest-version request |
diff --git a/packages/coding-agent/docs/settings.md b/packages/coding-agent/docs/settings.md
index fd5771f1..05b38fa1 100644
--- a/packages/coding-agent/docs/settings.md
+++ b/packages/coding-agent/docs/settings.md
@@ -167,7 +167,7 @@ Normally the package manager's global modules location is queried using `root -g
 { "sessionDir": ".pi/sessions" }
 ```
 
-When multiple sources specify a session directory, `--session-dir` CLI flag takes precedence over `sessionDir` in settings.json.
+When multiple sources specify a session directory, precedence is `--session-dir`, `PI_CODING_AGENT_SESSION_DIR`, then `sessionDir` in settings.json.
 
 ### Model Cycling
 
diff --git a/packages/coding-agent/docs/usage.md b/packages/coding-agent/docs/usage.md
index 9de6ac59..487e72ac 100644
--- a/packages/coding-agent/docs/usage.md
+++ b/packages/coding-agent/docs/usage.md
@@ -260,6 +260,7 @@ pi --tools read,grep,find,ls -p "Review the code"
 | Variable | Description |
 |----------|-------------|
 | `PI_CODING_AGENT_DIR` | Override config directory; default is `~/.pi/agent` |
+| `PI_CODING_AGENT_SESSION_DIR` | Override session storage directory; overridden by `--session-dir` |
 | `PI_PACKAGE_DIR` | Override package directory, useful for Nix/Guix store paths |
 | `PI_OFFLINE` | Disable startup network operations, including update checks, package update checks, and install/update telemetry |
 | `PI_SKIP_VERSION_CHECK` | Skip the Pi version update check at startup. This prevents the `pi.dev` latest-version request |
diff --git a/packages/coding-agent/src/cli/args.ts b/packages/coding-agent/src/cli/args.ts
index de0a79d7..b2c5532a 100644
--- a/packages/coding-agent/src/cli/args.ts
+++ b/packages/coding-agent/src/cli/args.ts
@@ -4,7 +4,7 @@
 
 import type { ThinkingLevel } from "@mariozechner/pi-agent-core";
 import chalk from "chalk";
-import { APP_NAME, CONFIG_DIR_NAME, ENV_AGENT_DIR } from "../config.js";
+import { APP_NAME, CONFIG_DIR_NAME, ENV_AGENT_DIR, ENV_SESSION_DIR } from "../config.js";
 import type { ExtensionFlag } from "../core/extensions/types.js";
 
 export type Mode = "text" | "json" | "rpc";
@@ -324,7 +324,8 @@ ${chalk.bold("Environment Variables:")}
   AWS_SECRET_ACCESS_KEY            - AWS secret key for Amazon Bedrock
   AWS_BEARER_TOKEN_BEDROCK         - Bedrock API key (bearer token)
   AWS_REGION                       - AWS region for Amazon Bedrock (e.g., us-east-1)
-  ${ENV_AGENT_DIR.padEnd(32)} - Session storage directory (default: ~/${CONFIG_DIR_NAME}/agent)
+  ${ENV_AGENT_DIR.padEnd(32)} - Config directory (default: ~/${CONFIG_DIR_NAME}/agent)
+  ${ENV_SESSION_DIR.padEnd(32)} - Session storage directory (overridden by --session-dir)
   PI_PACKAGE_DIR                   - Override package directory (for Nix/Guix store paths)
   PI_OFFLINE                       - Disable startup network operations when set to 1/true/yes
   PI_TELEMETRY                     - Override install telemetry when set to 1/true/yes or 0/false/no
diff --git a/packages/coding-agent/src/config.ts b/packages/coding-agent/src/config.ts
index 7a8a477e..20876fa1 100644
--- a/packages/coding-agent/src/config.ts
+++ b/packages/coding-agent/src/config.ts
@@ -327,6 +327,13 @@ export const VERSION: string = pkg.version || "0.0.0";
 
 // e.g., PI_CODING_AGENT_DIR or TAU_CODING_AGENT_DIR
 export const ENV_AGENT_DIR = `${APP_NAME.toUpperCase()}_CODING_AGENT_DIR`;
+export const ENV_SESSION_DIR = `${APP_NAME.toUpperCase()}_CODING_AGENT_SESSION_DIR`;
+
+export function expandTildePath(path: string): string {
+	if (path === "~") return homedir();
+	if (path.startsWith("~/")) return homedir() + path.slice(1);
+	return path;
+}
 
 const DEFAULT_SHARE_VIEWER_URL = "https://pi.dev/session/";
 
@@ -344,10 +351,7 @@ export function getShareViewerUrl(gistId: string): string {
 export function getAgentDir(): string {
 	const envDir = process.env[ENV_AGENT_DIR];
 	if (envDir) {
-		// Expand tilde to home directory
-		if (envDir === "~") return homedir();
-		if (envDir.startsWith("~/")) return homedir() + envDir.slice(1);
-		return envDir;
+		return expandTildePath(envDir);
 	}
 	return join(homedir(), CONFIG_DIR_NAME, "agent");
 }
diff --git a/packages/coding-agent/src/main.ts b/packages/coding-agent/src/main.ts
index 821f602c..c68f5cb1 100644
--- a/packages/coding-agent/src/main.ts
+++ b/packages/coding-agent/src/main.ts
@@ -15,7 +15,7 @@ import { processFileArguments } from "./cli/file-processor.js";
 import { buildInitialMessage } from "./cli/initial-message.js";
 import { listModels } from "./cli/list-models.js";
 import { selectSession } from "./cli/session-picker.js";
-import { getAgentDir, VERSION } from "./config.js";
+import { ENV_SESSION_DIR, expandTildePath, getAgentDir, VERSION } from "./config.js";
 import { type CreateAgentSessionRuntimeFactory, createAgentSessionRuntime } from "./core/agent-session-runtime.js";
 import {
 	type AgentSessionRuntimeDiagnostic,
@@ -493,7 +493,11 @@ export async function main(args: string[], options?: MainOptions) {
 	// settings, resources, provider registrations, and models must be resolved only after
 	// the target session cwd is known. The startup-cwd settings manager is used only for
 	// sessionDir lookup during session selection.
-	const sessionDir = parsed.sessionDir ?? startupSettingsManager.getSessionDir();
+	const envSessionDir = process.env[ENV_SESSION_DIR];
+	const sessionDir =
+		parsed.sessionDir ??
+		(envSessionDir ? expandTildePath(envSessionDir) : undefined) ??
+		startupSettingsManager.getSessionDir();
 	let sessionManager = await createSessionManager(parsed, cwd, sessionDir, startupSettingsManager);
 	const missingSessionCwdIssue = getMissingSessionCwdIssue(sessionManager, cwd);
 	if (missingSessionCwdIssue) {