diff --git a/packages/appkit/src/core/appkit.ts b/packages/appkit/src/core/appkit.ts
index 5252ce5c..4866cfd5 100644
--- a/packages/appkit/src/core/appkit.ts
+++ b/packages/appkit/src/core/appkit.ts
@@ -78,8 +78,7 @@ export class AppKit<TPlugins extends InputPluginMap> {
     };
     // If the factory eagerly constructed an instance (via
     // `toPluginWithInstance`), reuse it; otherwise construct now.
-    const preBuilt = (pluginData as { instance?: BasePlugin }).instance;
-    const pluginInstance = preBuilt ?? new Plugin(baseConfig);
+    const pluginInstance = pluginData.instance ?? new Plugin(baseConfig);
 
     if (typeof pluginInstance.attachContext === "function") {
       pluginInstance.attachContext({
@@ -232,9 +231,11 @@ export class AppKit<TPlugins extends InputPluginMap> {
   ) {
     const result: InputPluginMap = {};
     for (const currentPlugin of plugins) {
+      const instance = (currentPlugin as { instance?: BasePlugin }).instance;
       result[currentPlugin.name] = {
         plugin: currentPlugin.plugin,
         config: currentPlugin.config as Record<string, unknown>,
+        instance,
       };
     }
     return result;
diff --git a/packages/appkit/src/core/tests/appkit.test.ts b/packages/appkit/src/core/tests/appkit.test.ts
new file mode 100644
index 00000000..900d5f56
--- /dev/null
+++ b/packages/appkit/src/core/tests/appkit.test.ts
@@ -0,0 +1,174 @@
+import type { AgentToolDefinition, ToolProvider } from "shared";
+import { describe, expect, test, vi } from "vitest";
+
+vi.mock("../../cache", () => ({
+  CacheManager: {
+    getInstance: vi.fn().mockResolvedValue({
+      get: vi.fn(),
+      set: vi.fn(),
+      delete: vi.fn(),
+      getOrExecute: vi.fn(),
+    }),
+    getInstanceSync: vi.fn().mockReturnValue({
+      get: vi.fn(),
+      set: vi.fn(),
+      delete: vi.fn(),
+      getOrExecute: vi.fn(),
+    }),
+  },
+}));
+
+vi.mock("../../telemetry", () => ({
+  TelemetryManager: {
+    initialize: vi.fn(),
+    getProvider: vi.fn(() => ({
+      getTracer: vi.fn(),
+      getMeter: vi.fn(),
+      getLogger: vi.fn(),
+      emit: vi.fn(),
+      startActiveSpan: vi.fn(),
+      registerInstrumentations: vi.fn(),
+    })),
+  },
+  normalizeTelemetryOptions: vi.fn(() => ({
+    traces: false,
+    metrics: false,
+    logs: false,
+  })),
+}));
+
+vi.mock("../../context/service-context", () => {
+  const mockClient = {
+    statementExecution: { executeStatement: vi.fn() },
+    currentUser: { me: vi.fn().mockResolvedValue({ id: "test-user" }) },
+    config: { host: "https://test.databricks.com" },
+  };
+
+  return {
+    ServiceContext: {
+      initialize: vi.fn().mockResolvedValue({
+        client: mockClient,
+        serviceUserId: "test-service-user",
+        workspaceId: Promise.resolve("test-workspace"),
+      }),
+      get: vi.fn().mockReturnValue({
+        client: mockClient,
+        serviceUserId: "test-service-user",
+        workspaceId: Promise.resolve("test-workspace"),
+      }),
+      isInitialized: vi.fn().mockReturnValue(true),
+      createUserContext: vi.fn(),
+    },
+  };
+});
+
+vi.mock("../../registry", () => ({
+  ResourceRegistry: vi.fn().mockImplementation(() => ({
+    collectResources: vi.fn(),
+    getRequired: vi.fn().mockReturnValue([]),
+    enforceValidation: vi.fn(),
+  })),
+  ResourceType: { SQL_WAREHOUSE: "sql_warehouse" },
+  getPluginManifest: vi.fn(),
+  getResourceRequirements: vi.fn(),
+}));
+
+import { toPlugin, toPluginWithInstance } from "../../plugin/to-plugin";
+import { createApp } from "../appkit";
+
+const manifest = {
+  name: "counter",
+  displayName: "Counter",
+  description: "Counter",
+  resources: { required: [], optional: [] },
+};
+
+function makeCounterPlugin() {
+  let constructions = 0;
+  class CounterPlugin implements ToolProvider {
+    static manifest = manifest;
+    static DEFAULT_CONFIG = {};
+    name = "counter";
+    id: number;
+    flag = false;
+    constructor(public config: unknown) {
+      constructions += 1;
+      this.id = constructions;
+    }
+    async setup() {}
+    injectRoutes() {}
+    getEndpoints() {
+      return {};
+    }
+    getAgentTools(): AgentToolDefinition[] {
+      return [];
+    }
+    async executeAgentTool() {
+      return "ok";
+    }
+    exports() {
+      return {
+        getFlag: () => this.flag,
+        getId: () => this.id,
+      };
+    }
+  }
+  return {
+    CounterPlugin,
+    getConstructionCount: () => constructions,
+  };
+}
+
+describe("AppKit.preparePlugins instance forwarding", () => {
+  test("toPluginWithInstance: reuses the eagerly constructed instance", async () => {
+    const { CounterPlugin, getConstructionCount } = makeCounterPlugin();
+
+    const counter = toPluginWithInstance(
+      CounterPlugin as never,
+      ["exports"] as const,
+    );
+    const pluginData = counter();
+
+    expect(getConstructionCount()).toBe(1);
+    expect(pluginData.instance).toBeDefined();
+
+    (pluginData.instance as unknown as { flag: boolean }).flag = true;
+    const factoryId = (pluginData.instance as unknown as { id: number }).id;
+
+    const app = await createApp({ plugins: [pluginData] });
+
+    expect(getConstructionCount()).toBe(1);
+
+    const handle = (
+      app as unknown as Record<
+        string,
+        { getFlag: () => boolean; getId: () => number }
+      >
+    ).counter;
+    expect(handle.getFlag()).toBe(true);
+    expect(handle.getId()).toBe(factoryId);
+  });
+
+  test("toPlugin: constructs a fresh instance inside createApp (unchanged behavior)", async () => {
+    const { CounterPlugin, getConstructionCount } = makeCounterPlugin();
+
+    const counter = toPlugin(CounterPlugin as never);
+    const pluginData = counter();
+
+    expect(getConstructionCount()).toBe(0);
+    expect((pluginData as { instance?: unknown }).instance).toBeUndefined();
+
+    const app = await createApp({ plugins: [pluginData] });
+
+    expect(getConstructionCount()).toBe(1);
+
+    const handle = (
+      app as unknown as Record<
+        string,
+        { getFlag: () => boolean; getId: () => number }
+      >
+    ).counter;
+    expect(handle.getFlag()).toBe(false);
+    expect(handle.getId()).toBe(1);
+  });
+});
diff --git a/packages/shared/src/plugin.ts b/packages/shared/src/plugin.ts
index 651840c7..b8929112 100644
--- a/packages/shared/src/plugin.ts
+++ b/packages/shared/src/plugin.ts
@@ -139,6 +139,14 @@ export type ConfigFor<T> = T extends { DEFAULT_CONFIG: infer D }
 export type OptionalConfigPluginDef<P extends PluginConstructor> = {
   plugin: P;
   config?: Partial<ConfigFor<P>>;
+  /**
+   * Pre-built plugin instance, populated by factories like
+   * `toPluginWithInstance` that eagerly construct the plugin. When present,
+   * AppKit reuses this instance instead of constructing a new one so that
+   * the handle a user holds at module scope is the same object that answers
+   * runtime requests.
+   */
+  instance?: BasePlugin;
 };
 
 // Input plugin map type (used internally by AppKit)