diff --git a/examples/actors/tool_actor.yaml b/examples/actors/tool_actor.yaml
new file mode 100644
index 00000000..cf48b93d
--- /dev/null
+++ b/examples/actors/tool_actor.yaml
@@ -0,0 +1,100 @@
+# Tool Actor Example
+#
+# Demonstrates an LLM actor with inline tool definitions.
+# Tools allow the actor to perform actions like reading files, searching
+# content, and manipulating data.
+#
+# Use case: File operations, data analysis, code inspection
+
+version: "3"
+name: file-reader
+description: Actor that can read and search files using inline tools
+type: llm
+
+# LLM Configuration
+provider: openai
+model: gpt-4-turbo
+temperature: 0.5
+
+system_prompt: |
+  You are a file analysis assistant. You can read files, search for patterns,
+  and answer questions about codebases.
+  
+  When asked about files:
+  1. Use read_file to examine specific files
+  2. Use search_files to find patterns across the codebase
+  3. Use list_directory to explore directory structure
+  
+  Provide clear, actionable insights based on the files you examine.
+
+# Inline tool definitions - Python code that runs in sandboxed environment
+tools:
+  - name: read_file
+    description: Read the complete contents of a file
+    parameters:
+      - name: path
+        type: string
+        description: Path to the file to read (relative to project root)
+        required: true
+    code: |
+      # context provides access to SkillContext with file operations
+      # input_data contains the parameters passed by the LLM
+      file_content = context.get_file(input_data["path"])
+      result = {
+          "path": input_data["path"],
+          "content": file_content,
+          "size_bytes": len(file_content)
+      }
+    timeout: 10
+
+  - name: search_files
+    description: Search for a regex pattern across files in the project
+    parameters:
+      - name: pattern
+        type: string
+        description: Regular expression pattern to search for
+        required: true
+      - name: file_pattern
+        type: string
+        description: Glob pattern for files to search (default "**/*.py")
+        required: false
+        default: "**/*.py"
+    code: |
+      import re
+      # Search files matching the glob pattern
+      matches = context.search_files(
+          input_data.get("file_pattern", "**/*.py"),
+          input_data["pattern"]
+      )
+      result = {
+          "pattern": input_data["pattern"],
+          "matches_found": len(matches),
+          "matches": matches[:50]  # Limit to first 50 matches
+      }
+    timeout: 30
+
+# Reference to built-in tools (implemented in CleverAgents core)
+# These don't need inline code - they're pre-implemented
+metadata:
+  builtin_tools:
+    - list_directory
+    - get_file_info
+
+# Memory configuration
+memory:
+  enabled: true
+  max_turns: 20
+
+# Context configuration - executor view for focused file analysis
+context:
+  view: executor
+  include_files:
+    - "src/**/*.py"
+    - "tests/**/*.py"
+    - "*.md"
+  exclude_files:
+    - "**/__pycache__/**"
+    - "**/node_modules/**"
+    - "**/.git/**"
+  max_file_size_kb: 200
+