diff --git a/tests/test_max_iterations.py b/tests/test_max_iterations.py
new file mode 100644
index 0000000..04e6863
--- /dev/null
+++ b/tests/test_max_iterations.py
@@ -0,0 +1,64 @@
+"""Test that max_iterations is passed to grounding agent in no-skill path."""
+
+import asyncio
+import types
+from unittest.mock import AsyncMock, patch
+
+import pytest
+
+from openspace.tool_layer import OpenSpace, OpenSpaceConfig
+
+
+def _make_openspace(configured_max: int = 50) -> OpenSpace:
+    config = OpenSpaceConfig()
+    config.grounding_max_iterations = configured_max
+    os_inst = OpenSpace(config)
+    os_inst._initialized = True
+    os_inst._running = False
+    os_inst._task_done = asyncio.Event()
+    os_inst._task_done.set()
+    os_inst._grounding_client = types.SimpleNamespace(_registry={})
+    os_inst._recording_manager = None
+    os_inst._skill_registry = None
+    os_inst._execution_analyzer = None
+    os_inst._skill_evolver = None
+    return os_inst
+
+
+@pytest.mark.asyncio
+async def test_no_skill_path_passes_configured_max_iterations():
+    """When no skills match, the configured grounding_max_iterations
+    must be forwarded to the agent, not silently dropped."""
+    os_inst = _make_openspace(configured_max=50)
+    recorded = {}
+
+    async def fake_process(context):
+        recorded.update(context)
+        return {"status": "success", "iterations": 1, "tool_executions": []}
+
+    os_inst._grounding_agent = types.SimpleNamespace(process=fake_process)
+    os_inst._maybe_analyze_execution = AsyncMock()
+    os_inst._maybe_evolve_quality = AsyncMock()
+
+    await os_inst.execute("do something")
+
+    assert recorded.get("max_iterations") == 50
+
+
+@pytest.mark.asyncio
+async def test_no_skill_path_uses_caller_override_when_larger():
+    """Caller-provided max_iterations should win when larger than config."""
+    os_inst = _make_openspace(configured_max=20)
+    recorded = {}
+
+    async def fake_process(context):
+        recorded.update(context)
+        return {"status": "success", "iterations": 1, "tool_executions": []}
+
+    os_inst._grounding_agent = types.SimpleNamespace(process=fake_process)
+    os_inst._maybe_analyze_execution = AsyncMock()
+    os_inst._maybe_evolve_quality = AsyncMock()
+
+    await os_inst.execute("do something", max_iterations=100)
+
+    assert recorded.get("max_iterations") == 100