diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index b54776c0..434b5b18 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -7,6 +7,10 @@
 - Added extension support for customizing the interactive streaming working indicator via `ctx.ui.setWorkingIndicator()`, including custom animated frames, static indicators, hidden indicators, a new `working-indicator.ts` example extension, and updated extension/TUI/RPC docs ([#3413](https://github.com/badlogic/pi-mono/issues/3413))
 - Added `/clone` to duplicate the current active branch into a new session, while keeping `/fork` focused on forking from a previous user message ([#2962](https://github.com/badlogic/pi-mono/issues/2962))
 
+### Changed
+
+- Documented async extension factory functions in the extensions and custom-provider docs, including startup ordering and dynamic model/provider discovery via async initialization ([#3469](https://github.com/badlogic/pi-mono/issues/3469))
+
 ### Fixed
 
 - Fixed `pi update` reinstalling npm packages that are already at the latest published version by checking the installed package version before running `npm install <pkg>@latest` ([#3000](https://github.com/badlogic/pi-mono/issues/3000))
diff --git a/packages/coding-agent/README.md b/packages/coding-agent/README.md
index 6c30f995..a2f2045d 100644
--- a/packages/coding-agent/README.md
+++ b/packages/coding-agent/README.md
@@ -335,6 +335,8 @@ export default function (pi: ExtensionAPI) {
 }
 ```
 
+The default export can also be `async`. pi waits for async extension factories before startup continues, which is useful for one-time initialization such as fetching remote model lists before calling `pi.registerProvider()`.
+
 **What's possible:**
 - Custom tools (or replace built-in tools entirely)
 - Sub-agents and plan mode
diff --git a/packages/coding-agent/docs/custom-provider.md b/packages/coding-agent/docs/custom-provider.md
index be22acc9..31c1ef75 100644
--- a/packages/coding-agent/docs/custom-provider.md
+++ b/packages/coding-agent/docs/custom-provider.md
@@ -59,6 +59,8 @@ export default function (pi: ExtensionAPI) {
 }
 ```
 
+The extension factory can also be `async`. For dynamic model discovery, fetch and register models in the factory instead of `session_start`. pi waits for the factory before startup continues, so the provider is available during interactive startup and to `pi --list-models`.
+
 ## Override Existing Provider
 
 The simplest use case: redirect an existing provider through a proxy.
@@ -91,6 +93,41 @@ When only `baseUrl` and/or `headers` are provided (no `models`), all existing mo
 
 To add a completely new provider, specify `models` along with the required configuration.
 
+If the model list comes from a remote endpoint, use an async extension factory:
+
+```typescript
+import type { ExtensionAPI } from "@mariozechner/pi-coding-agent";
+
+export default async function (pi: ExtensionAPI) {
+  const response = await fetch("http://localhost:1234/v1/models");
+  const payload = (await response.json()) as {
+    data: Array<{
+      id: string;
+      name?: string;
+      context_window?: number;
+      max_tokens?: number;
+    }>;
+  };
+
+  pi.registerProvider("local-openai", {
+    baseUrl: "http://localhost:1234/v1",
+    apiKey: "LOCAL_OPENAI_API_KEY",
+    api: "openai-completions",
+    models: payload.data.map((model) => ({
+      id: model.id,
+      name: model.name ?? model.id,
+      reasoning: false,
+      input: ["text"],
+      cost: { input: 0, output: 0, cacheRead: 0, cacheWrite: 0 },
+      contextWindow: model.context_window ?? 128000,
+      maxTokens: model.max_tokens ?? 4096,
+    })),
+  });
+}
+```
+
+This registers the fetched models before startup finishes.
+
 ```typescript
 pi.registerProvider("my-llm", {
   baseUrl: "https://api.my-llm.com/v1",
diff --git a/packages/coding-agent/docs/extensions.md b/packages/coding-agent/docs/extensions.md
index d64ebf16..09b58d31 100644
--- a/packages/coding-agent/docs/extensions.md
+++ b/packages/coding-agent/docs/extensions.md
@@ -151,7 +151,7 @@ Node.js built-ins (`node:fs`, `node:path`, etc.) are also available.
 
 ## Writing an Extension
 
-An extension exports a default function that receives `ExtensionAPI`:
+An extension exports a default factory function that receives `ExtensionAPI`. The factory can be synchronous or asynchronous:
 
 ```typescript
 import type { ExtensionAPI } from "@mariozechner/pi-coding-agent";
@@ -176,6 +176,45 @@ export default function (pi: ExtensionAPI) {
 
 Extensions are loaded via [jiti](https://github.com/unjs/jiti), so TypeScript works without compilation.
 
+If the factory returns a `Promise`, pi awaits it before continuing startup. That means async initialization completes before `session_start`, before `resources_discover`, and before provider registrations queued via `pi.registerProvider()` are flushed.
+
+### Async factory functions
+
+Use an async factory for one-time startup work such as fetching remote configuration or dynamically discovering available models.
+
+```typescript
+import type { ExtensionAPI } from "@mariozechner/pi-coding-agent";
+
+export default async function (pi: ExtensionAPI) {
+  const response = await fetch("http://localhost:1234/v1/models");
+  const payload = (await response.json()) as {
+    data: Array<{
+      id: string;
+      name?: string;
+      context_window?: number;
+      max_tokens?: number;
+    }>;
+  };
+
+  pi.registerProvider("local-openai", {
+    baseUrl: "http://localhost:1234/v1",
+    apiKey: "LOCAL_OPENAI_API_KEY",
+    api: "openai-completions",
+    models: payload.data.map((model) => ({
+      id: model.id,
+      name: model.name ?? model.id,
+      reasoning: false,
+      input: ["text"],
+      cost: { input: 0, output: 0, cacheRead: 0, cacheWrite: 0 },
+      contextWindow: model.context_window ?? 128000,
+      maxTokens: model.max_tokens ?? 4096,
+    })),
+  });
+}
+```
+
+This pattern makes the fetched models available during normal startup and to `pi --list-models`.
+
 ### Extension Styles
 
 **Single file** - simplest, for small extensions:
@@ -1371,6 +1410,8 @@ Register or override a model provider dynamically. Useful for proxies, custom en
 
 Calls made during the extension factory function are queued and applied once the runner initialises. Calls made after that — for example from a command handler following a user setup flow — take effect immediately without requiring a `/reload`.
 
+If you need to discover models from a remote endpoint, prefer an async extension factory over deferring the fetch to `session_start`. pi waits for the factory before startup continues, so the registered models are available immediately, including to `pi --list-models`.
+
 ```typescript
 // Register a new provider with custom models
 pi.registerProvider("my-proxy", {