diff --git a/python/packages/core/agent_framework/_skills.py b/python/packages/core/agent_framework/_skills.py
index 91bdb61914..e863ada3ec 100644
--- a/python/packages/core/agent_framework/_skills.py
+++ b/python/packages/core/agent_framework/_skills.py
@@ -3092,6 +3092,7 @@ def _search(directory: str, current_depth: int) -> None:
             dir_path = Path(directory)
             if (dir_path / SKILL_FILE_NAME).is_file():
                 discovered.append(str(dir_path.absolute()))
+                return
 
             if current_depth >= MAX_SEARCH_DEPTH:
                 return
diff --git a/python/packages/core/tests/core/test_skills.py b/python/packages/core/tests/core/test_skills.py
index 12d636ef41..43211e5f15 100644
--- a/python/packages/core/tests/core/test_skills.py
+++ b/python/packages/core/tests/core/test_skills.py
@@ -1917,6 +1917,19 @@ def test_finds_nested_skill(self, tmp_path: Path) -> None:
         assert len(dirs) == 1
         assert str(sub.absolute()) in dirs[0]
 
+    def test_stops_searching_below_skill_boundary(self, tmp_path: Path) -> None:
+        skill_dir = tmp_path / "parent-skill"
+        nested_skill_dir = skill_dir / "nested-skill"
+        nested_skill_dir.mkdir(parents=True)
+        (skill_dir / "SKILL.md").write_text("---\nname: parent-skill\ndescription: d\n---\n", encoding="utf-8")
+        (nested_skill_dir / "SKILL.md").write_text(
+            "---\nname: nested-skill\ndescription: d\n---\n", encoding="utf-8"
+        )
+
+        dirs = FileSkillsSource._discover_skill_directories([str(tmp_path)])
+
+        assert dirs == [str(skill_dir.absolute())]
+
     def test_skips_empty_path_string(self) -> None:
         dirs = FileSkillsSource._discover_skill_directories(["", "   "])
         assert dirs == []