diff --git a/src/agent/orchestrator.rs b/src/agent/orchestrator.rs
index bed9f5c..1ee92fb 100644
--- a/src/agent/orchestrator.rs
+++ b/src/agent/orchestrator.rs
@@ -1141,31 +1141,31 @@ impl Orchestrator {
 
         for task in &blocked_tasks {
             // Look up blocker task ID from metadata (set during cascade)
-            if let Some(blocker_id) = task.metadata.get("blocker_task_id") {
-                if let Some(blocker) = self.graph_store.get_node(blocker_id).await? {
-                    // If the blocker has been retried and is now completed, unblock
-                    if blocker.status == NodeStatus::Completed {
-                        // Remove blocker_task_id from metadata when unblocking
-                        let mut metadata = task.metadata.clone();
-                        metadata.remove("blocker_task_id");
-
-                        self.graph_store
-                            .update_node(
-                                &task.id,
-                                Some(NodeStatus::Ready),
-                                None,            // title unchanged
-                                None,            // description unchanged
-                                Some(""),        // clear blocked_reason by setting to empty string
-                                Some(&metadata), // metadata with blocker_task_id removed
-                            )
-                            .await?;
+            if let Some(blocker_id) = task.metadata.get("blocker_task_id")
+                && let Some(blocker) = self.graph_store.get_node(blocker_id).await?
+            {
+                // If the blocker has been retried and is now completed, unblock
+                if blocker.status == NodeStatus::Completed {
+                    // Remove blocker_task_id from metadata when unblocking
+                    let mut metadata = task.metadata.clone();
+                    metadata.remove("blocker_task_id");
+
+                    self.graph_store
+                        .update_node(
+                            &task.id,
+                            Some(NodeStatus::Ready),
+                            None,            // title unchanged
+                            None,            // description unchanged
+                            Some(""),        // clear blocked_reason by setting to empty string
+                            Some(&metadata), // metadata with blocker_task_id removed
+                        )
+                        .await?;
 
-                        tracing::info!(
-                            task = %task.id,
-                            blocker = %blocker_id,
-                            "Task unblocked: dependency resolved"
-                        );
-                    }
+                    tracing::info!(
+                        task = %task.id,
+                        blocker = %blocker_id,
+                        "Task unblocked: dependency resolved"
+                    );
                 }
             }
         }
diff --git a/src/tools/search.rs b/src/tools/search.rs
index 4cf0597..510a28b 100644
--- a/src/tools/search.rs
+++ b/src/tools/search.rs
@@ -92,11 +92,10 @@ impl Tool for CodeSearchTool {
 
         // Walk directory tree
         for entry in WalkDir::new(&search_root).into_iter().filter_entry(|e| {
-            // Skip hidden directories
-            let file_name = e.file_name().to_string_lossy();
-            if e.file_type().is_dir() && file_name.starts_with('.') {
-                let name_str = file_name.as_ref();
-                !skip_dirs.contains(&name_str)
+            // Skip directories in skip_dirs list
+            if e.file_type().is_dir() {
+                let file_name = e.file_name().to_string_lossy();
+                !skip_dirs.contains(&file_name.as_ref())
             } else {
                 true
             }
@@ -269,7 +268,7 @@ mod tests {
 
         // Should not fail, just skip the binary
         let result = tool.execute(params).await.unwrap();
-        assert!(result.contains("text.txt") || result.contains("No matches found"));
+        assert!(result.contains("text.txt"));
     }
 
     #[tokio::test]
@@ -312,4 +311,40 @@ mod tests {
         let result = tool.execute(params).await.unwrap();
         assert_eq!(result, "No matches found");
     }
+
+    #[tokio::test]
+    async fn code_search_skips_node_modules_and_target() {
+        let temp_dir = TempDir::new().unwrap();
+        let project_root = temp_dir.path().to_path_buf();
+
+        // Create files in regular directory
+        std::fs::write(project_root.join("main.rs"), "fn main() {}").unwrap();
+
+        // Create files in node_modules (should be skipped)
+        std::fs::create_dir_all(project_root.join("node_modules")).unwrap();
+        std::fs::write(
+            project_root.join("node_modules/package.txt"),
+            "fn should_skip",
+        )
+        .unwrap();
+
+        // Create files in target (should be skipped)
+        std::fs::create_dir_all(project_root.join("target")).unwrap();
+        std::fs::write(
+            project_root.join("target/artifact.rs"),
+            "fn should_skip",
+        )
+        .unwrap();
+
+        let tool = CodeSearchTool::new(project_root);
+        let params = json!({
+            "pattern": "fn"
+        });
+
+        let result = tool.execute(params).await.unwrap();
+        // Should find main.rs but NOT files in node_modules or target
+        assert!(result.contains("main.rs"));
+        assert!(!result.contains("node_modules"));
+        assert!(!result.contains("target"));
+    }
 }