fix: add missing import and update tests for branch template feature (#799)

* fix: add missing import and update tests for branch template feature

- Add missing `import { $ } from 'bun'` in branch.ts
- Add missing `labels` property to pull-request-target.test.ts fixture
- Update branch-template tests to expect 5-word descriptions

* address review feedback: update comment and add truncation test

.claude/commands/label-issue.md

@@ -17,6 +17,7 @@ TASK OVERVIEW:
 1. First, fetch the list of labels available in this repository by running: `gh label list`. Run exactly this command with nothing else.
 
 2. Next, use gh commands to get context about the issue:
+
    - Use `gh issue view ${{ github.event.issue.number }}` to retrieve the current issue's details
    - Use `gh search issues` to find similar issues that might provide context for proper categorization
    - You have access to these Bash commands:
@@ -26,6 +27,7 @@ TASK OVERVIEW:
      - Bash(gh search:\*) - to search for similar issues
 
 3. Analyze the issue content, considering:
+
    - The issue title and description
    - The type of issue (bug report, feature request, question, etc.)
    - Technical areas mentioned
@@ -34,6 +36,7 @@ TASK OVERVIEW:
    - Components affected
 
 4. Select appropriate labels from the available labels list provided above:
+
    - Choose labels that accurately reflect the issue's nature
    - Be specific but comprehensive
    - IMPORTANT: Add a priority label (P1, P2, or P3) based on the label descriptions from gh label list

action.yml

@@ -23,6 +23,10 @@ inputs:
     description: "The prefix to use for Claude branches (defaults to 'claude/', use 'claude-' for dash format)"
     required: false
     default: "claude/"
+  branch_name_template:
+    description: "Template for branch naming. Available variables: {{prefix}}, {{entityType}}, {{entityNumber}}, {{timestamp}}, {{sha}}, {{label}}, {{description}}. {{label}} will be first label from the issue/PR, or {{entityType}} as a fallback. {{description}} will be the first 5 words of the issue/PR title in kebab-case. Default: '{{prefix}}{{entityType}}-{{entityNumber}}-{{timestamp}}'"
+    required: false
+    default: ""
   allowed_bots:
     description: "Comma-separated list of allowed bot usernames, or '*' to allow all bots. Empty string (default) allows no bots."
     required: false
@@ -178,6 +182,7 @@ runs:
         LABEL_TRIGGER: ${{ inputs.label_trigger }}
         BASE_BRANCH: ${{ inputs.base_branch }}
         BRANCH_PREFIX: ${{ inputs.branch_prefix }}
+        BRANCH_NAME_TEMPLATE: ${{ inputs.branch_name_template }}
         OVERRIDE_GITHUB_TOKEN: ${{ inputs.github_token }}
         ALLOWED_BOTS: ${{ inputs.allowed_bots }}
         ALLOWED_NON_WRITE_USERS: ${{ inputs.allowed_non_write_users }}
@@ -208,7 +213,7 @@ runs:
 
         # Install Claude Code if no custom executable is provided
         if [ -z "$PATH_TO_CLAUDE_CODE_EXECUTABLE" ]; then
-          CLAUDE_CODE_VERSION="2.0.76"
+          CLAUDE_CODE_VERSION="2.1.1"
           echo "Installing Claude Code v${CLAUDE_CODE_VERSION}..."
           for attempt in 1 2 3; do
             echo "Installation attempt $attempt..."

base-action/CONTRIBUTING.md

@@ -57,6 +57,7 @@ Thank you for your interest in contributing to Claude Code Base Action! This doc
    ```
 
    This script:
+
    - Installs `act` if not present (requires Homebrew on macOS)
    - Runs the GitHub Action workflow locally using Docker
    - Requires your `ANTHROPIC_API_KEY` to be set

base-action/README.md

@@ -85,26 +85,26 @@ Add the following to your workflow file:
 
 ## Inputs
 
-| Input                     | Description                                                                                                            | Required | Default                      |
+| Input                     | Description                                                                                                             | Required | Default                      |
-| ------------------------- | ---------------------------------------------------------------------------------------------------------------------- | -------- | ---------------------------- |
+| ------------------------- | ----------------------------------------------------------------------------------------------------------------------- | -------- | ---------------------------- |
-| `prompt`                  | The prompt to send to Claude Code                                                                                      | No\*     | ''                           |
+| `prompt`                  | The prompt to send to Claude Code                                                                                       | No\*     | ''                           |
-| `prompt_file`             | Path to a file containing the prompt to send to Claude Code                                                            | No\*     | ''                           |
+| `prompt_file`             | Path to a file containing the prompt to send to Claude Code                                                             | No\*     | ''                           |
-| `allowed_tools`           | Comma-separated list of allowed tools for Claude Code to use                                                           | No       | ''                           |
+| `allowed_tools`           | Comma-separated list of allowed tools for Claude Code to use                                                            | No       | ''                           |
-| `disallowed_tools`        | Comma-separated list of disallowed tools that Claude Code cannot use                                                   | No       | ''                           |
+| `disallowed_tools`        | Comma-separated list of disallowed tools that Claude Code cannot use                                                    | No       | ''                           |
-| `max_turns`               | Maximum number of conversation turns (default: no limit)                                                               | No       | ''                           |
+| `max_turns`               | Maximum number of conversation turns (default: no limit)                                                                | No       | ''                           |
-| `mcp_config`              | Path to the MCP configuration JSON file, or MCP configuration JSON string                                              | No       | ''                           |
+| `mcp_config`              | Path to the MCP configuration JSON file, or MCP configuration JSON string                                               | No       | ''                           |
-| `settings`                | Path to Claude Code settings JSON file, or settings JSON string                                                        | No       | ''                           |
+| `settings`                | Path to Claude Code settings JSON file, or settings JSON string                                                         | No       | ''                           |
-| `system_prompt`           | Override system prompt                                                                                                 | No       | ''                           |
+| `system_prompt`           | Override system prompt                                                                                                  | No       | ''                           |
-| `append_system_prompt`    | Append to system prompt                                                                                                | No       | ''                           |
+| `append_system_prompt`    | Append to system prompt                                                                                                 | No       | ''                           |
-| `claude_env`              | Custom environment variables to pass to Claude Code execution (YAML multiline format)                                  | No       | ''                           |
+| `claude_env`              | Custom environment variables to pass to Claude Code execution (YAML multiline format)                                   | No       | ''                           |
-| `model`                   | Model to use (provider-specific format required for Bedrock/Vertex)                                                    | No       | 'claude-4-0-sonnet-20250219' |
+| `model`                   | Model to use (provider-specific format required for Bedrock/Vertex)                                                     | No       | 'claude-4-0-sonnet-20250219' |
-| `anthropic_model`         | DEPRECATED: Use 'model' instead                                                                                        | No       | 'claude-4-0-sonnet-20250219' |
+| `anthropic_model`         | DEPRECATED: Use 'model' instead                                                                                         | No       | 'claude-4-0-sonnet-20250219' |
-| `fallback_model`          | Enable automatic fallback to specified model when default model is overloaded                                          | No       | ''                           |
+| `fallback_model`          | Enable automatic fallback to specified model when default model is overloaded                                           | No       | ''                           |
-| `anthropic_api_key`       | Anthropic API key (required for direct Anthropic API)                                                                  | No       | ''                           |
+| `anthropic_api_key`       | Anthropic API key (required for direct Anthropic API)                                                                   | No       | ''                           |
-| `claude_code_oauth_token` | Claude Code OAuth token (alternative to anthropic_api_key)                                                             | No       | ''                           |
+| `claude_code_oauth_token` | Claude Code OAuth token (alternative to anthropic_api_key)                                                              | No       | ''                           |
-| `use_bedrock`             | Use Amazon Bedrock with OIDC authentication instead of direct Anthropic API                                            | No       | 'false'                      |
+| `use_bedrock`             | Use Amazon Bedrock with OIDC authentication instead of direct Anthropic API                                             | No       | 'false'                      |
-| `use_vertex`              | Use Google Vertex AI with OIDC authentication instead of direct Anthropic API                                          | No       | 'false'                      |
+| `use_vertex`              | Use Google Vertex AI with OIDC authentication instead of direct Anthropic API                                           | No       | 'false'                      |
-| `use_node_cache`          | Whether to use Node.js dependency caching (set to true only for Node.js projects with lock files)                      | No       | 'false'                      |
+| `use_node_cache`          | Whether to use Node.js dependency caching (set to true only for Node.js projects with lock files)                       | No       | 'false'                      |
 | `show_full_output`        | Show full JSON output (⚠️ May expose secrets - see [security docs](../docs/security.md#️-full-output-security-warning)) | No       | 'false'\*\*                  |
 
 \*Either `prompt` or `prompt_file` must be provided, but not both.
@@ -490,6 +490,7 @@ This example shows how to use OIDC authentication with GCP Vertex AI:
 To securely use your Anthropic API key:
 
 1. Add your API key as a repository secret:
+
    - Go to your repository's Settings
    - Navigate to "Secrets and variables" → "Actions"
    - Click "New repository secret"

base-action/action.yml

@@ -124,7 +124,7 @@ runs:
         PATH_TO_CLAUDE_CODE_EXECUTABLE: ${{ inputs.path_to_claude_code_executable }}
       run: |
         if [ -z "$PATH_TO_CLAUDE_CODE_EXECUTABLE" ]; then
-          CLAUDE_CODE_VERSION="2.0.76"
+          CLAUDE_CODE_VERSION="2.1.1"
           echo "Installing Claude Code v${CLAUDE_CODE_VERSION}..."
           for attempt in 1 2 3; do
             echo "Installation attempt $attempt..."

base-action/bun.lock

@@ -6,7 +6,7 @@
       "name": "@anthropic-ai/claude-code-base-action",
       "dependencies": {
         "@actions/core": "^1.10.1",
-        "@anthropic-ai/claude-agent-sdk": "^0.1.76",
+        "@anthropic-ai/claude-agent-sdk": "^0.2.1",
         "shell-quote": "^1.8.3",
       },
       "devDependencies": {
@@ -27,7 +27,7 @@
 
     "@actions/io": ["@actions/io@1.1.3", "", {}, "sha512-wi9JjgKLYS7U/z8PPbco+PvTb/nRWjeoFlJ1Qer83k/3C5PHQi28hiVdeE2kHXmIL99mQFawx8qt/JPjZilJ8Q=="],
 
-    "@anthropic-ai/claude-agent-sdk": ["@anthropic-ai/claude-agent-sdk@0.1.76", "", { "optionalDependencies": { "@img/sharp-darwin-arm64": "^0.33.5", "@img/sharp-darwin-x64": "^0.33.5", "@img/sharp-linux-arm": "^0.33.5", "@img/sharp-linux-arm64": "^0.33.5", "@img/sharp-linux-x64": "^0.33.5", "@img/sharp-linuxmusl-arm64": "^0.33.5", "@img/sharp-linuxmusl-x64": "^0.33.5", "@img/sharp-win32-x64": "^0.33.5" }, "peerDependencies": { "zod": "^3.24.1 || ^4.0.0" } }, "sha512-s7RvpXoFaLXLG7A1cJBAPD8ilwOhhc/12fb5mJXRuD561o4FmPtQ+WRfuy9akMmrFRfLsKv8Ornw3ClGAPL2fw=="],
+    "@anthropic-ai/claude-agent-sdk": ["@anthropic-ai/claude-agent-sdk@0.2.1", "", { "optionalDependencies": { "@img/sharp-darwin-arm64": "^0.33.5", "@img/sharp-darwin-x64": "^0.33.5", "@img/sharp-linux-arm": "^0.33.5", "@img/sharp-linux-arm64": "^0.33.5", "@img/sharp-linux-x64": "^0.33.5", "@img/sharp-linuxmusl-arm64": "^0.33.5", "@img/sharp-linuxmusl-x64": "^0.33.5", "@img/sharp-win32-x64": "^0.33.5" }, "peerDependencies": { "zod": "^4.0.0" } }, "sha512-ZJO/TWcrFHGQTGHJDJl03mWozirWMBqdNpbuAgxZpLaHj2N5vyMxoeYiJC+7M0+gOSs7bjwKJLKTZcHGtGa34g=="],
 
     "@fastify/busboy": ["@fastify/busboy@2.1.1", "", {}, "sha512-vBZP4NlzfOlerQTnba4aqZoMhE/a9HY7HRqoOPaETQcSQuWEIyZMHGfVu6w9wGtGK5fED5qRs2DteVCjOH60sA=="],
 

base-action/package.json

@@ -11,7 +11,7 @@
   },
   "dependencies": {
     "@actions/core": "^1.10.1",
-    "@anthropic-ai/claude-agent-sdk": "^0.1.76",
+    "@anthropic-ai/claude-agent-sdk": "^0.2.1",
     "shell-quote": "^1.8.3"
   },
   "devDependencies": {

bun.lock

@@ -7,7 +7,7 @@
       "dependencies": {
         "@actions/core": "^1.10.1",
         "@actions/github": "^6.0.1",
-        "@anthropic-ai/claude-agent-sdk": "^0.1.76",
+        "@anthropic-ai/claude-agent-sdk": "^0.2.1",
         "@modelcontextprotocol/sdk": "^1.11.0",
         "@octokit/graphql": "^8.2.2",
         "@octokit/rest": "^21.1.1",
@@ -37,7 +37,7 @@
 
     "@actions/io": ["@actions/io@1.1.3", "", {}, "sha512-wi9JjgKLYS7U/z8PPbco+PvTb/nRWjeoFlJ1Qer83k/3C5PHQi28hiVdeE2kHXmIL99mQFawx8qt/JPjZilJ8Q=="],
 
-    "@anthropic-ai/claude-agent-sdk": ["@anthropic-ai/claude-agent-sdk@0.1.76", "", { "optionalDependencies": { "@img/sharp-darwin-arm64": "^0.33.5", "@img/sharp-darwin-x64": "^0.33.5", "@img/sharp-linux-arm": "^0.33.5", "@img/sharp-linux-arm64": "^0.33.5", "@img/sharp-linux-x64": "^0.33.5", "@img/sharp-linuxmusl-arm64": "^0.33.5", "@img/sharp-linuxmusl-x64": "^0.33.5", "@img/sharp-win32-x64": "^0.33.5" }, "peerDependencies": { "zod": "^3.24.1 || ^4.0.0" } }, "sha512-s7RvpXoFaLXLG7A1cJBAPD8ilwOhhc/12fb5mJXRuD561o4FmPtQ+WRfuy9akMmrFRfLsKv8Ornw3ClGAPL2fw=="],
+    "@anthropic-ai/claude-agent-sdk": ["@anthropic-ai/claude-agent-sdk@0.2.1", "", { "optionalDependencies": { "@img/sharp-darwin-arm64": "^0.33.5", "@img/sharp-darwin-x64": "^0.33.5", "@img/sharp-linux-arm": "^0.33.5", "@img/sharp-linux-arm64": "^0.33.5", "@img/sharp-linux-x64": "^0.33.5", "@img/sharp-linuxmusl-arm64": "^0.33.5", "@img/sharp-linuxmusl-x64": "^0.33.5", "@img/sharp-win32-x64": "^0.33.5" }, "peerDependencies": { "zod": "^4.0.0" } }, "sha512-ZJO/TWcrFHGQTGHJDJl03mWozirWMBqdNpbuAgxZpLaHj2N5vyMxoeYiJC+7M0+gOSs7bjwKJLKTZcHGtGa34g=="],
 
     "@fastify/busboy": ["@fastify/busboy@2.1.1", "", {}, "sha512-vBZP4NlzfOlerQTnba4aqZoMhE/a9HY7HRqoOPaETQcSQuWEIyZMHGfVu6w9wGtGK5fED5qRs2DteVCjOH60sA=="],
 

docs/configuration.md

@@ -116,6 +116,7 @@ The `additional_permissions` input allows Claude to access GitHub Actions workfl
 To allow Claude to view workflow run results, job logs, and CI status:
 
 1. **Grant the necessary permission to your GitHub token**:
+
    - When using the default `GITHUB_TOKEN`, add the `actions: read` permission to your workflow:
 
    ```yaml

docs/migration-guide.md

@@ -228,10 +228,12 @@ jobs:
 The action now automatically detects the appropriate mode:
 
 1. **If `prompt` is provided** → Runs in **automation mode**
+
    - Executes immediately without waiting for @claude mentions
    - Perfect for scheduled tasks, PR automation, etc.
 
 2. **If no `prompt` but @claude is mentioned** → Runs in **interactive mode**
+
    - Waits for and responds to @claude mentions
    - Creates tracking comments with progress
 

docs/security.md

@@ -75,12 +75,14 @@ Commits will show as verified and attributed to the GitHub account that owns the
    ```
 
 2. Add the **public key** to your GitHub account:
+
    - Go to GitHub → Settings → SSH and GPG keys
    - Click "New SSH key"
    - Select **Key type: Signing Key** (important)
    - Paste the contents of `~/.ssh/signing_key.pub`
 
 3. Add the **private key** to your repository secrets:
+
    - Go to your repo → Settings → Secrets and variables → Actions
    - Create a new secret named `SSH_SIGNING_KEY`
    - Paste the contents of `~/.ssh/signing_key`

docs/setup.md

@@ -31,23 +31,27 @@ The fastest way to create a custom GitHub App is using our pre-configured manife
    **🚀 [Download the Quick Setup Tool](./create-app.html)** (Right-click → "Save Link As" or "Download Linked File")
 
    After downloading, open `create-app.html` in your web browser:
+
    - **For Personal Accounts:** Click the "Create App for Personal Account" button
    - **For Organizations:** Enter your organization name and click "Create App for Organization"
 
    The tool will automatically configure all required permissions and submit the manifest.
 
    Alternatively, you can use the manifest file directly:
+
    - Use the [`github-app-manifest.json`](../github-app-manifest.json) file from this repository
    - Visit https://github.com/settings/apps/new (for personal) or your organization's app settings
    - Look for the "Create from manifest" option and paste the JSON content
 
 2. **Complete the creation flow:**
+
    - GitHub will show you a preview of the app configuration
    - Confirm the app name (you can customize it)
    - Click "Create GitHub App"
    - The app will be created with all required permissions automatically configured
 
 3. **Generate and download a private key:**
+
    - After creating the app, you'll be redirected to the app settings
    - Scroll down to "Private keys"
    - Click "Generate a private key"
@@ -60,6 +64,7 @@ The fastest way to create a custom GitHub App is using our pre-configured manife
 If you prefer to configure the app manually or need custom permissions:
 
 1. **Create a new GitHub App:**
+
    - Go to https://github.com/settings/apps (for personal apps) or your organization's settings
    - Click "New GitHub App"
    - Configure the app with these minimum permissions:
@@ -72,16 +77,19 @@ If you prefer to configure the app manually or need custom permissions:
    - Create the app
 
 2. **Generate and download a private key:**
+
    - After creating the app, scroll down to "Private keys"
    - Click "Generate a private key"
    - Download the `.pem` file (keep this secure!)
 
 3. **Install the app on your repository:**
+
    - Go to the app's settings page
    - Click "Install App"
    - Select the repositories where you want to use Claude
 
 4. **Add the app credentials to your repository secrets:**
+
    - Go to your repository's Settings → Secrets and variables → Actions
    - Add these secrets:
      - `APP_ID`: Your GitHub App's ID (found in the app settings)
@@ -130,6 +138,7 @@ For more information on creating GitHub Apps, see the [GitHub documentation](htt
 To securely use your Anthropic API key:
 
 1. Add your API key as a repository secret:
+
    - Go to your repository's Settings
    - Navigate to "Secrets and variables" → "Actions"
    - Click "New repository secret"

examples/ci-failure-auto-fix.yml

@@ -21,26 +21,7 @@ jobs:
       !startsWith(github.event.workflow_run.head_branch, 'claude-auto-fix-ci-')
     runs-on: ubuntu-latest
     steps:
-      - name: Check for clawd-stop label
-        id: check_label
-        uses: actions/github-script@v7
-        with:
-          script: |
-            const prNumber = ${{ github.event.workflow_run.pull_requests[0].number }};
-            const { data: pr } = await github.rest.pulls.get({
-              owner: context.repo.owner,
-              repo: context.repo.repo,
-              pull_number: prNumber
-            });
-            const hasClawdStop = pr.labels.some(label => label.name === 'clawd-stop');
-            if (hasClawdStop) {
-              console.log('PR has clawd-stop label, skipping auto-fix');
-            }
-            return hasClawdStop;
-          result-encoding: string
-
       - name: Checkout code
-        if: steps.check_label.outputs.result != 'true'
         uses: actions/checkout@v5
         with:
           ref: ${{ github.event.workflow_run.head_branch }}
@@ -48,13 +29,11 @@ jobs:
           token: ${{ secrets.GITHUB_TOKEN }}
 
       - name: Setup git identity
-        if: steps.check_label.outputs.result != 'true'
         run: |
           git config --global user.email "claude[bot]@users.noreply.github.com"
           git config --global user.name "claude[bot]"
 
       - name: Create fix branch
-        if: steps.check_label.outputs.result != 'true'
         id: branch
         run: |
           BRANCH_NAME="claude-auto-fix-ci-${{ github.event.workflow_run.head_branch }}-${{ github.run_id }}"
@@ -62,7 +41,6 @@ jobs:
           echo "branch_name=$BRANCH_NAME" >> $GITHUB_OUTPUT
 
       - name: Get CI failure details
-        if: steps.check_label.outputs.result != 'true'
         id: failure_details
         uses: actions/github-script@v7
         with:
@@ -101,7 +79,6 @@ jobs:
             };
 
       - name: Fix CI failures with Claude
-        if: steps.check_label.outputs.result != 'true'
         id: claude
         uses: anthropics/claude-code-action@v1
         with:

package.json

@@ -12,7 +12,7 @@
   "dependencies": {
     "@actions/core": "^1.10.1",
     "@actions/github": "^6.0.1",
-    "@anthropic-ai/claude-agent-sdk": "^0.1.76",
+    "@anthropic-ai/claude-agent-sdk": "^0.2.1",
     "@modelcontextprotocol/sdk": "^1.11.0",
     "@octokit/graphql": "^8.2.2",
     "@octokit/rest": "^21.1.1",

src/github/api/queries/github.ts

@@ -18,6 +18,11 @@ export const PR_QUERY = `
         additions
         deletions
         state
+        labels(first: 1) {
+          nodes {
+            name
+          }
+        }
         commits(first: 100) {
           totalCount
           nodes {
@@ -101,6 +106,11 @@ export const ISSUE_QUERY = `
         updatedAt
         lastEditedAt
         state
+        labels(first: 1) {
+          nodes {
+            name
+          }
+        }
         comments(first: 100) {
           nodes {
             id

src/github/context.ts

@@ -88,6 +88,7 @@ type BaseContext = {
     labelTrigger: string;
     baseBranch?: string;
     branchPrefix: string;
+    branchNameTemplate?: string;
     useStickyComment: boolean;
     useCommitSigning: boolean;
     sshSigningKey: string;
@@ -145,6 +146,7 @@ export function parseGitHubContext(): GitHubContext {
       labelTrigger: process.env.LABEL_TRIGGER ?? "",
       baseBranch: process.env.BASE_BRANCH,
       branchPrefix: process.env.BRANCH_PREFIX ?? "claude/",
+      branchNameTemplate: process.env.BRANCH_NAME_TEMPLATE,
       useStickyComment: process.env.USE_STICKY_COMMENT === "true",
       useCommitSigning: process.env.USE_COMMIT_SIGNING === "true",
       sshSigningKey: process.env.SSH_SIGNING_KEY || "",

src/github/operations/branch.ts

@@ -6,12 +6,22 @@
  * - For Issues: Create a new branch
  */
 
+import { $ } from "bun";
 import { execFileSync } from "child_process";
 import * as core from "@actions/core";
 import type { ParsedGitHubContext } from "../context";
 import type { GitHubPullRequest } from "../types";
 import type { Octokits } from "../api/client";
 import type { FetchDataResult } from "../data/fetcher";
+import { generateBranchName } from "../../utils/branch-template";
+
+/**
+ * Extracts the first label from GitHub data, or returns undefined if no labels exist
+ */
+function extractFirstLabel(githubData: FetchDataResult): string | undefined {
+  const labels = githubData.contextData.labels?.nodes;
+  return labels && labels.length > 0 ? labels[0]?.name : undefined;
+}
 
 /**
  * Validates a git branch name against a strict whitelist pattern.
@@ -125,7 +135,7 @@ export async function setupBranch(
 ): Promise<BranchInfo> {
   const { owner, repo } = context.repository;
   const entityNumber = context.entityNumber;
-  const { baseBranch, branchPrefix } = context.inputs;
+  const { baseBranch, branchPrefix, branchNameTemplate } = context.inputs;
   const isPR = context.isPR;
 
   if (isPR) {
@@ -191,17 +201,8 @@ export async function setupBranch(
   // Generate branch name for either an issue or closed/merged PR
   const entityType = isPR ? "pr" : "issue";
 
-  // Create Kubernetes-compatible timestamp: lowercase, hyphens only, shorter format
+  // Get the SHA of the source branch to use in template
-  const now = new Date();
+  let sourceSHA: string | undefined;
-  const timestamp = `${now.getFullYear()}${String(now.getMonth() + 1).padStart(2, "0")}${String(now.getDate()).padStart(2, "0")}-${String(now.getHours()).padStart(2, "0")}${String(now.getMinutes()).padStart(2, "0")}`;
-
-  // Ensure branch name is Kubernetes-compatible:
-  // - Lowercase only
-  // - Alphanumeric with hyphens
-  // - No underscores
-  // - Max 50 chars (to allow for prefixes)
-  const branchName = `${branchPrefix}${entityType}-${entityNumber}-${timestamp}`;
-  const newBranch = branchName.toLowerCase().substring(0, 50);
 
   try {
     // Get the SHA of the source branch to verify it exists
@@ -211,8 +212,46 @@ export async function setupBranch(
       ref: `heads/${sourceBranch}`,
     });
 
-    const currentSHA = sourceBranchRef.data.object.sha;
+    sourceSHA = sourceBranchRef.data.object.sha;
-    console.log(`Source branch SHA: ${currentSHA}`);
+    console.log(`Source branch SHA: ${sourceSHA}`);
+
+    // Extract first label from GitHub data
+    const firstLabel = extractFirstLabel(githubData);
+
+    // Extract title from GitHub data
+    const title = githubData.contextData.title;
+
+    // Generate branch name using template or default format
+    let newBranch = generateBranchName(
+      branchNameTemplate,
+      branchPrefix,
+      entityType,
+      entityNumber,
+      sourceSHA,
+      firstLabel,
+      title,
+    );
+
+    // Check if generated branch already exists on remote
+    try {
+      await $`git ls-remote --exit-code origin refs/heads/${newBranch}`.quiet();
+
+      // If we get here, branch exists (exit code 0)
+      console.log(
+        `Branch '${newBranch}' already exists, falling back to default format`,
+      );
+      newBranch = generateBranchName(
+        undefined, // Force default template
+        branchPrefix,
+        entityType,
+        entityNumber,
+        sourceSHA,
+        firstLabel,
+        title,
+      );
+    } catch {
+      // Branch doesn't exist (non-zero exit code), continue with generated name
+    }
 
     // For commit signing, defer branch creation to the file ops server
     if (context.inputs.useCommitSigning) {

src/github/types.ts

@@ -63,6 +63,11 @@ export type GitHubPullRequest = {
   additions: number;
   deletions: number;
   state: string;
+  labels: {
+    nodes: Array<{
+      name: string;
+    }>;
+  };
   commits: {
     totalCount: number;
     nodes: Array<{
@@ -88,6 +93,11 @@ export type GitHubIssue = {
   updatedAt?: string;
   lastEditedAt?: string;
   state: string;
+  labels: {
+    nodes: Array<{
+      name: string;
+    }>;
+  };
   comments: {
     nodes: GitHubComment[];
   };

src/utils/branch-template.ts

@@ -0,0 +1,99 @@
+#!/usr/bin/env bun
+
+/**
+ * Branch name template parsing and variable substitution utilities
+ */
+
+const NUM_DESCRIPTION_WORDS = 5;
+
+/**
+ * Extracts the first 5 words from a title and converts them to kebab-case
+ */
+function extractDescription(
+  title: string,
+  numWords: number = NUM_DESCRIPTION_WORDS,
+): string {
+  if (!title || title.trim() === "") {
+    return "";
+  }
+
+  return title
+    .trim()
+    .split(/\s+/)
+    .slice(0, numWords) // Only first `numWords` words
+    .join("-")
+    .toLowerCase()
+    .replace(/[^a-z0-9-]/g, "") // Remove non-alphanumeric except hyphens
+    .replace(/-+/g, "-") // Replace multiple hyphens with single
+    .replace(/^-|-$/g, ""); // Remove leading/trailing hyphens
+}
+
+export interface BranchTemplateVariables {
+  prefix: string;
+  entityType: string;
+  entityNumber: number;
+  timestamp: string;
+  sha?: string;
+  label?: string;
+  description?: string;
+}
+
+/**
+ * Replaces template variables in a branch name template
+ * Template format: {{variableName}}
+ */
+export function applyBranchTemplate(
+  template: string,
+  variables: BranchTemplateVariables,
+): string {
+  let result = template;
+
+  // Replace each variable
+  Object.entries(variables).forEach(([key, value]) => {
+    const placeholder = `{{${key}}}`;
+    const replacement = value ? String(value) : "";
+    result = result.replaceAll(placeholder, replacement);
+  });
+
+  return result;
+}
+
+/**
+ * Generates a branch name from the provided `template` and set of `variables`. Uses a default format if the template is empty or produces an empty result.
+ */
+export function generateBranchName(
+  template: string | undefined,
+  branchPrefix: string,
+  entityType: string,
+  entityNumber: number,
+  sha?: string,
+  label?: string,
+  title?: string,
+): string {
+  const now = new Date();
+
+  const variables: BranchTemplateVariables = {
+    prefix: branchPrefix,
+    entityType,
+    entityNumber,
+    timestamp: `${now.getFullYear()}${String(now.getMonth() + 1).padStart(2, "0")}${String(now.getDate()).padStart(2, "0")}-${String(now.getHours()).padStart(2, "0")}${String(now.getMinutes()).padStart(2, "0")}`,
+    sha: sha?.substring(0, 8), // First 8 characters of SHA
+    label: label || entityType, // Fall back to entityType if no label
+    description: title ? extractDescription(title) : undefined,
+  };
+
+  if (template?.trim()) {
+    const branchName = applyBranchTemplate(template, variables);
+
+    // Some templates could produce empty results- validate
+    if (branchName.trim().length > 0) return branchName;
+
+    console.log(
+      `Branch template '${template}' generated empty result, falling back to default format`,
+    );
+  }
+
+  const branchName = `${branchPrefix}${entityType}-${entityNumber}-${variables.timestamp}`;
+  // Kubernetes compatible: lowercase, max 50 chars, alphanumeric and hyphens only
+  return branchName.toLowerCase().substring(0, 50);
+}

test/branch-template.test.ts

@@ -0,0 +1,247 @@
+#!/usr/bin/env bun
+
+import { describe, it, expect } from "bun:test";
+import {
+  applyBranchTemplate,
+  generateBranchName,
+} from "../src/utils/branch-template";
+
+describe("branch template utilities", () => {
+  describe("applyBranchTemplate", () => {
+    it("should replace all template variables", () => {
+      const template =
+        "{{prefix}}{{entityType}}-{{entityNumber}}-{{timestamp}}";
+      const variables = {
+        prefix: "feat/",
+        entityType: "issue",
+        entityNumber: 123,
+        timestamp: "20240301-1430",
+        sha: "abcd1234",
+      };
+
+      const result = applyBranchTemplate(template, variables);
+      expect(result).toBe("feat/issue-123-20240301-1430");
+    });
+
+    it("should handle custom templates with multiple variables", () => {
+      const template =
+        "{{prefix}}fix/{{entityType}}_{{entityNumber}}_{{timestamp}}_{{sha}}";
+      const variables = {
+        prefix: "claude-",
+        entityType: "pr",
+        entityNumber: 456,
+        timestamp: "20240301-1430",
+        sha: "abcd1234",
+      };
+
+      const result = applyBranchTemplate(template, variables);
+      expect(result).toBe("claude-fix/pr_456_20240301-1430_abcd1234");
+    });
+
+    it("should handle templates with missing variables gracefully", () => {
+      const template = "{{prefix}}{{entityType}}-{{missing}}-{{entityNumber}}";
+      const variables = {
+        prefix: "feat/",
+        entityType: "issue",
+        entityNumber: 123,
+        timestamp: "20240301-1430",
+      };
+
+      const result = applyBranchTemplate(template, variables);
+      expect(result).toBe("feat/issue-{{missing}}-123");
+    });
+  });
+
+  describe("generateBranchName", () => {
+    it("should use custom template when provided", () => {
+      const template = "{{prefix}}custom-{{entityType}}_{{entityNumber}}";
+      const result = generateBranchName(template, "feature/", "issue", 123);
+
+      expect(result).toBe("feature/custom-issue_123");
+    });
+
+    it("should use default format when template is empty", () => {
+      const result = generateBranchName("", "claude/", "issue", 123);
+
+      expect(result).toMatch(/^claude\/issue-123-\d{8}-\d{4}$/);
+    });
+
+    it("should use default format when template is undefined", () => {
+      const result = generateBranchName(undefined, "claude/", "pr", 456);
+
+      expect(result).toMatch(/^claude\/pr-456-\d{8}-\d{4}$/);
+    });
+
+    it("should preserve custom template formatting (no automatic lowercase/truncation)", () => {
+      const template = "{{prefix}}UPPERCASE_Branch-Name_{{entityNumber}}";
+      const result = generateBranchName(template, "Feature/", "issue", 123);
+
+      expect(result).toBe("Feature/UPPERCASE_Branch-Name_123");
+    });
+
+    it("should not truncate custom template results", () => {
+      const template =
+        "{{prefix}}very-long-branch-name-that-exceeds-the-maximum-allowed-length-{{entityNumber}}";
+      const result = generateBranchName(template, "feature/", "issue", 123);
+
+      expect(result).toBe(
+        "feature/very-long-branch-name-that-exceeds-the-maximum-allowed-length-123",
+      );
+    });
+
+    it("should apply Kubernetes-compatible transformations to default template only", () => {
+      const result = generateBranchName(undefined, "Feature/", "issue", 123);
+
+      expect(result).toMatch(/^feature\/issue-123-\d{8}-\d{4}$/);
+      expect(result.length).toBeLessThanOrEqual(50);
+    });
+
+    it("should handle SHA in template", () => {
+      const template = "{{prefix}}{{entityType}}-{{entityNumber}}-{{sha}}";
+      const result = generateBranchName(
+        template,
+        "fix/",
+        "pr",
+        789,
+        "abcdef123456",
+      );
+
+      expect(result).toBe("fix/pr-789-abcdef12");
+    });
+
+    it("should use label in template when provided", () => {
+      const template = "{{prefix}}{{label}}/{{entityNumber}}";
+      const result = generateBranchName(
+        template,
+        "feature/",
+        "issue",
+        123,
+        undefined,
+        "bug",
+      );
+
+      expect(result).toBe("feature/bug/123");
+    });
+
+    it("should fallback to entityType when label template is used but no label provided", () => {
+      const template = "{{prefix}}{{label}}-{{entityNumber}}";
+      const result = generateBranchName(template, "fix/", "pr", 456);
+
+      expect(result).toBe("fix/pr-456");
+    });
+
+    it("should handle template with both label and entityType", () => {
+      const template = "{{prefix}}{{label}}-{{entityType}}_{{entityNumber}}";
+      const result = generateBranchName(
+        template,
+        "dev/",
+        "issue",
+        789,
+        undefined,
+        "enhancement",
+      );
+
+      expect(result).toBe("dev/enhancement-issue_789");
+    });
+
+    it("should use description in template when provided", () => {
+      const template = "{{prefix}}{{description}}/{{entityNumber}}";
+      const result = generateBranchName(
+        template,
+        "feature/",
+        "issue",
+        123,
+        undefined,
+        undefined,
+        "Fix login bug with OAuth",
+      );
+
+      expect(result).toBe("feature/fix-login-bug-with-oauth/123");
+    });
+
+    it("should handle template with multiple variables including description", () => {
+      const template =
+        "{{prefix}}{{label}}/{{description}}-{{entityType}}_{{entityNumber}}";
+      const result = generateBranchName(
+        template,
+        "dev/",
+        "issue",
+        456,
+        undefined,
+        "bug",
+        "User authentication fails completely",
+      );
+
+      expect(result).toBe(
+        "dev/bug/user-authentication-fails-completely-issue_456",
+      );
+    });
+
+    it("should handle description with special characters in template", () => {
+      const template = "{{prefix}}{{description}}-{{entityNumber}}";
+      const result = generateBranchName(
+        template,
+        "fix/",
+        "pr",
+        789,
+        undefined,
+        undefined,
+        "Add: User Registration & Email Validation",
+      );
+
+      expect(result).toBe("fix/add-user-registration-email-789");
+    });
+
+    it("should truncate descriptions to exactly 5 words", () => {
+      const result = generateBranchName(
+        "{{prefix}}{{description}}/{{entityNumber}}",
+        "feature/",
+        "issue",
+        999,
+        undefined,
+        undefined,
+        "This is a very long title with many more than five words in it",
+      );
+      expect(result).toBe("feature/this-is-a-very-long/999");
+    });
+
+    it("should handle empty description in template", () => {
+      const template = "{{prefix}}{{description}}-{{entityNumber}}";
+      const result = generateBranchName(
+        template,
+        "test/",
+        "issue",
+        101,
+        undefined,
+        undefined,
+        "",
+      );
+
+      expect(result).toBe("test/-101");
+    });
+
+    it("should fallback to default format when template produces empty result", () => {
+      const template = "{{description}}"; // Will be empty if no title provided
+      const result = generateBranchName(template, "claude/", "issue", 123);
+
+      expect(result).toMatch(/^claude\/issue-123-\d{8}-\d{4}$/);
+      expect(result.length).toBeLessThanOrEqual(50);
+    });
+
+    it("should fallback to default format when template produces only whitespace", () => {
+      const template = "  {{description}}  "; // Will be "  " if description is empty
+      const result = generateBranchName(
+        template,
+        "fix/",
+        "pr",
+        456,
+        undefined,
+        undefined,
+        "",
+      );
+
+      expect(result).toMatch(/^fix\/pr-456-\d{8}-\d{4}$/);
+      expect(result.length).toBeLessThanOrEqual(50);
+    });
+  });
+});

test/create-prompt.test.ts

@@ -61,6 +61,7 @@ describe("generatePrompt", () => {
       body: "This is a test PR",
       author: { login: "testuser" },
       state: "OPEN",
+      labels: { nodes: [] },
       createdAt: "2023-01-01T00:00:00Z",
       additions: 15,
       deletions: 5,
@@ -475,6 +476,7 @@ describe("generatePrompt", () => {
         body: "The login form is not working",
         author: { login: "testuser" },
         state: "OPEN",
+        labels: { nodes: [] },
         createdAt: "2023-01-01T00:00:00Z",
         comments: {
           nodes: [],

test/data-formatter.test.ts

@@ -28,6 +28,9 @@ describe("formatContext", () => {
       additions: 50,
       deletions: 30,
       state: "OPEN",
+      labels: {
+        nodes: [],
+      },
       commits: {
         totalCount: 3,
         nodes: [],
@@ -63,6 +66,9 @@ Changed Files: 2 files`,
       author: { login: "test-user" },
       createdAt: "2023-01-01T00:00:00Z",
       state: "OPEN",
+      labels: {
+        nodes: [],
+      },
       comments: {
         nodes: [],
       },

test/pull-request-target.test.ts

@@ -87,6 +87,7 @@ describe("pull_request_target event support", () => {
       },
       comments: { nodes: [] },
       reviews: { nodes: [] },
+      labels: { nodes: [] },
     },
     comments: [],
     changedFiles: [],