diff --git a/registry/coder/modules/claude-code/README.md b/registry/coder/modules/claude-code/README.md
index 8e98a880a..984830f92 100644
--- a/registry/coder/modules/claude-code/README.md
+++ b/registry/coder/modules/claude-code/README.md
@@ -13,7 +13,7 @@ Run the [Claude Code](https://docs.anthropic.com/en/docs/agents-and-tools/claude
 ```tf
 module "claude-code" {
   source         = "registry.coder.com/coder/claude-code/coder"
-  version        = "4.6.0"
+  version        = "4.7.0"
   agent_id       = coder_agent.main.id
   workdir        = "/home/coder/project"
   claude_api_key = "xxxx-xxxxx-xxxx"
@@ -42,17 +42,21 @@ By default, Claude Code automatically resumes existing conversations when your w
 
 This example shows how to configure the Claude Code module to run the agent behind a process-level boundary that restricts its network access.
 
+By default, when `enable_boundary = true`, the module uses `coder boundary` subcommand (provided by Coder) without requiring any installation.
+
 ```tf
 module "claude-code" {
-  source           = "registry.coder.com/coder/claude-code/coder"
-  version          = "4.6.0"
-  agent_id         = coder_agent.main.id
-  workdir          = "/home/coder/project"
-  enable_boundary  = true
-  boundary_version = "v0.5.1"
+  source          = "registry.coder.com/coder/claude-code/coder"
+  version         = "4.7.0"
+  agent_id        = coder_agent.main.id
+  workdir         = "/home/coder/project"
+  enable_boundary = true
 }
 ```
 
+> [!NOTE]
+> For developers: The module also supports installing boundary from a release version (`use_boundary_directly = true`) or compiling from source (`compile_boundary_from_source = true`). These are escape hatches for development and testing purposes.
+
 ### Usage with AI Bridge
 
 [AI Bridge](https://coder.com/docs/ai-coder/ai-bridge) is a Premium Coder feature that provides centralized LLM proxy management. To use AI Bridge, set `enable_aibridge = true`.
@@ -64,7 +68,7 @@ For tasks integration with AI Bridge, add `enable_aibridge = true` to the [Usage
 ```tf
 module "claude-code" {
   source          = "registry.coder.com/coder/claude-code/coder"
-  version         = "4.6.0"
+  version         = "4.7.0"
   agent_id        = coder_agent.main.id
   workdir         = "/home/coder/project"
   enable_aibridge = true
@@ -93,7 +97,7 @@ data "coder_task" "me" {}
 
 module "claude-code" {
   source         = "registry.coder.com/coder/claude-code/coder"
-  version        = "4.6.0"
+  version        = "4.7.0"
   agent_id       = coder_agent.main.id
   workdir        = "/home/coder/project"
   claude_api_key = "xxxx-xxxxx-xxxx"
@@ -114,7 +118,7 @@ This example shows additional configuration options for version pinning, custom
 ```tf
 module "claude-code" {
   source   = "registry.coder.com/coder/claude-code/coder"
-  version  = "4.6.0"
+  version  = "4.7.0"
   agent_id = coder_agent.main.id
   workdir  = "/home/coder/project"
 
@@ -170,7 +174,7 @@ Run and configure Claude Code as a standalone CLI in your workspace.
 ```tf
 module "claude-code" {
   source              = "registry.coder.com/coder/claude-code/coder"
-  version             = "4.6.0"
+  version             = "4.7.0"
   agent_id            = coder_agent.main.id
   workdir             = "/home/coder/project"
   install_claude_code = true
@@ -192,7 +196,7 @@ variable "claude_code_oauth_token" {
 
 module "claude-code" {
   source                  = "registry.coder.com/coder/claude-code/coder"
-  version                 = "4.6.0"
+  version                 = "4.7.0"
   agent_id                = coder_agent.main.id
   workdir                 = "/home/coder/project"
   claude_code_oauth_token = var.claude_code_oauth_token
@@ -265,7 +269,7 @@ resource "coder_env" "bedrock_api_key" {
 
 module "claude-code" {
   source   = "registry.coder.com/coder/claude-code/coder"
-  version  = "4.6.0"
+  version  = "4.7.0"
   agent_id = coder_agent.main.id
   workdir  = "/home/coder/project"
   model    = "global.anthropic.claude-sonnet-4-5-20250929-v1:0"
@@ -322,7 +326,7 @@ resource "coder_env" "google_application_credentials" {
 
 module "claude-code" {
   source   = "registry.coder.com/coder/claude-code/coder"
-  version  = "4.6.0"
+  version  = "4.7.0"
   agent_id = coder_agent.main.id
   workdir  = "/home/coder/project"
   model    = "claude-sonnet-4@20250514"
diff --git a/registry/coder/modules/claude-code/main.tf b/registry/coder/modules/claude-code/main.tf
index 3a1128b48..8c4bd08e2 100644
--- a/registry/coder/modules/claude-code/main.tf
+++ b/registry/coder/modules/claude-code/main.tf
@@ -234,6 +234,12 @@ variable "compile_boundary_from_source" {
   default     = false
 }
 
+variable "use_boundary_directly" {
+  type        = bool
+  description = "Whether to use boundary binary directly instead of coder boundary subcommand. When false (default), uses coder boundary subcommand. When true, installs and uses boundary binary from release."
+  default     = false
+}
+
 variable "enable_aibridge" {
   type        = bool
   description = "Use AI Bridge for Claude Code. https://coder.com/docs/ai-coder/ai-bridge"
@@ -389,6 +395,7 @@ module "agentapi" {
      ARG_ENABLE_BOUNDARY='${var.enable_boundary}' \
      ARG_BOUNDARY_VERSION='${var.boundary_version}' \
      ARG_COMPILE_FROM_SOURCE='${var.compile_boundary_from_source}' \
+     ARG_USE_BOUNDARY_DIRECTLY='${var.use_boundary_directly}' \
      ARG_CODER_HOST='${local.coder_host}' \
      /tmp/start.sh
    EOT
diff --git a/registry/coder/modules/claude-code/scripts/start.sh b/registry/coder/modules/claude-code/scripts/start.sh
index c3c320209..f64c77c11 100644
--- a/registry/coder/modules/claude-code/scripts/start.sh
+++ b/registry/coder/modules/claude-code/scripts/start.sh
@@ -16,6 +16,7 @@ ARG_REPORT_TASKS=${ARG_REPORT_TASKS:-true}
 ARG_ENABLE_BOUNDARY=${ARG_ENABLE_BOUNDARY:-false}
 ARG_BOUNDARY_VERSION=${ARG_BOUNDARY_VERSION:-"main"}
 ARG_COMPILE_FROM_SOURCE=${ARG_COMPILE_FROM_SOURCE:-false}
+ARG_USE_BOUNDARY_DIRECTLY=${ARG_USE_BOUNDARY_DIRECTLY:-false}
 ARG_CODER_HOST=${ARG_CODER_HOST:-}
 
 echo "--------------------------------"
@@ -30,12 +31,13 @@ printf "ARG_REPORT_TASKS: %s\n" "$ARG_REPORT_TASKS"
 printf "ARG_ENABLE_BOUNDARY: %s\n" "$ARG_ENABLE_BOUNDARY"
 printf "ARG_BOUNDARY_VERSION: %s\n" "$ARG_BOUNDARY_VERSION"
 printf "ARG_COMPILE_FROM_SOURCE: %s\n" "$ARG_COMPILE_FROM_SOURCE"
+printf "ARG_USE_BOUNDARY_DIRECTLY: %s\n" "$ARG_USE_BOUNDARY_DIRECTLY"
 printf "ARG_CODER_HOST: %s\n" "$ARG_CODER_HOST"
 
 echo "--------------------------------"
 
 function install_boundary() {
-  if [ "${ARG_COMPILE_FROM_SOURCE:-false}" = "true" ]; then
+  if [ "$ARG_COMPILE_FROM_SOURCE" = "true" ]; then
     # Install boundary by compiling from source
     echo "Compiling boundary from source (version: $ARG_BOUNDARY_VERSION)"
 
@@ -52,14 +54,16 @@ function install_boundary() {
     # Build the binary
     make build
 
-    # Install binary and wrapper script (optional)
+    # Install binary
     sudo cp boundary /usr/local/bin/
-    sudo cp scripts/boundary-wrapper.sh /usr/local/bin/boundary-run
-    sudo chmod +x /usr/local/bin/boundary-run
-  else
+    sudo chmod +x /usr/local/bin/boundary
+  elif [ "$ARG_USE_BOUNDARY_DIRECTLY" = "true" ]; then
     # Install boundary using official install script
     echo "Installing boundary using official install script (version: $ARG_BOUNDARY_VERSION)"
     curl -fsSL https://raw.githubusercontent.com/coder/boundary/main/install.sh | bash -s -- --version "$ARG_BOUNDARY_VERSION"
+  else
+    # Use coder boundary subcommand (default) - no installation needed
+    echo "Using coder boundary subcommand (provided by Coder)"
   fi
 }
 
@@ -212,15 +216,30 @@ function start_agentapi() {
 
   printf "Running claude code with args: %s\n" "$(printf '%q ' "${ARGS[@]}")"
 
-  if [ "${ARG_ENABLE_BOUNDARY:-false}" = "true" ]; then
+  if [ "$ARG_ENABLE_BOUNDARY" = "true" ]; then
     install_boundary
 
     printf "Starting with coder boundary enabled\n"
 
     BOUNDARY_ARGS+=()
 
+    # Determine which boundary command to use
+    if [ "$ARG_COMPILE_FROM_SOURCE" = "true" ] || [ "$ARG_USE_BOUNDARY_DIRECTLY" = "true" ]; then
+      # Use boundary binary directly (from compilation or release installation)
+      BOUNDARY_CMD=("boundary")
+    else
+      # Use coder boundary subcommand (default)
+      # Copy coder binary to coder-no-caps. Copying strips CAP_NET_ADMIN capabilities
+      # from the binary, which is necessary because boundary doesn't work with
+      # privileged binaries (you can't launch privileged binaries inside network
+      # namespaces unless you have sys_admin).
+      CODER_NO_CAPS="$(dirname "$(which coder)")/coder-no-caps"
+      cp "$(which coder)" "$CODER_NO_CAPS"
+      BOUNDARY_CMD=("$CODER_NO_CAPS" "boundary")
+    fi
+
     agentapi server --type claude --term-width 67 --term-height 1190 -- \
-      boundary-run "${BOUNDARY_ARGS[@]}" -- \
+      "${BOUNDARY_CMD[@]}" "${BOUNDARY_ARGS[@]}" -- \
       claude "${ARGS[@]}"
   else
     agentapi server --type claude --term-width 67 --term-height 1190 -- claude "${ARGS[@]}"