diff --git a/CHANGELOG.md b/CHANGELOG.md
index b7c26a8..d8d774e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,87 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+## [0.2.0] - 2025-12-06
+
+### Added
+
+#### PydanticAI Integration (Phase 1)
+- Real Tatlock agent using PydanticAI with Ollama backend (mistral-nemo:latest)
+- British butler personality with research-oriented mindset
+- Lazy agent initialization to avoid connection issues in tests
+- Streaming response integration with reasoning output
+- Error handling for PydanticAI-specific exceptions
+
+#### Permanent Tools (Phase 1)
+- **Calculator tool** (`src/agents/tools.py`):
+  - Safe mathematical expression evaluation using restricted namespace
+  - Support for arithmetic, algebra, trigonometry, logarithms
+  - Math functions: sqrt, sin, cos, tan, log, exp, etc.
+  - Constants: pi, e
+  - Integer result formatting (removes unnecessary decimals)
+- **Date/Time toolkit**:
+  - `get_current_datetime`: Current date/time in multiple formats
+  - `calculate_time_offset`: Relative date calculations ("1 week ago", "2 months from now")
+  - `time_difference`: Human-readable time differences between dates
+- **Web Search tool**:
+  - SearXNG integration for privacy-preserving web search
+  - Automatic fallback from production to localhost in development
+  - Formatted search results with titles, URLs, and snippets
+  - Configurable result limits (max 10)
+
+#### Tool Framework
+- PydanticAI tool registration with `@agent.tool` decorator
+- Tool descriptions visible to LLM for intelligent usage
+- Async tool support for I/O operations
+- Error handling with string-based error messages
+- Tool usage guidelines in system prompt
+
+#### Configuration
+- SearXNG configuration in `src/core/config.py`:
+  - `SEARXNG_HOST` with development fallback
+  - `SEARXNG_TIMEOUT` setting
+- Updated `.env.example` with SearXNG configuration
+- Ollama configuration documentation
+
+#### Testing
+- 26 new tool tests (`tests/agents/test_tools.py`):
+  - 7 calculator tests (arithmetic, functions, error handling)
+  - 14 date/time tests (current time, offsets, differences)
+  - 5 web search tests (mocked HTTP client)
+- Updated registry tests for tools capability
+- Total: 131 tests, 81.78% coverage (up from 95 tests, 78.95%)
+
+#### Documentation
+- Comprehensive README.md updates:
+  - Tatlock agent capabilities and tool descriptions
+  - Requirements section with Ollama and SearXNG setup
+  - Configuration examples for external services
+  - Tool usage examples and philosophy
+  - Troubleshooting for Ollama and SearXNG
+  - Updated test statistics
+- AGENTS.md refactored for LLM development:
+  - PydanticAI tool registration pattern
+  - Tool implementation guidelines
+  - Removed project status, focused on development instructions
+- IMPLEMENTATION_ROADMAP.md updates:
+  - Phase 1 marked as "MOSTLY COMPLETE"
+  - Detailed completion status for each deliverable
+  - Updated current state summary
+
+### Changed
+- Tatlock agent converted from mock to real PydanticAI implementation
+- Tatlock capabilities updated: `tools: True`
+- Streaming coordination now handles chunk-based delivery (50 chars) to preserve markdown
+- Chat service streaming updated to preserve formatting
+- System prompt enhanced with tool usage guidelines and research mindset
+- Agent initialization changed to lazy pattern for better testability
+
+### Fixed
+- Text duplication bug in streaming responses (proper delta calculation)
+- Markdown formatting preservation in streamed responses
+- GeneratorExit errors from async context managers in generators
+- PydanticAI API usage (`result.output` instead of `result.data`)
+
 ## [0.1.1] - 2025-12-06
 
 ### Added
@@ -115,6 +196,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - CORS middleware
 - Exception handlers (OpenAI-compatible error format)
 
-[Unreleased]: https://git.schweitz.net/jpmschweitzer/tatlock/compare/v0.1.1...main
+[Unreleased]: https://git.schweitz.net/jpmschweitzer/tatlock/compare/v0.2.0...main
+[0.2.0]: https://git.schweitz.net/jpmschweitzer/tatlock/compare/v0.1.1...v0.2.0
 [0.1.1]: https://git.schweitz.net/jpmschweitzer/tatlock/compare/v0.1.0...v0.1.1
 [0.1.0]: https://git.schweitz.net/jpmschweitzer/tatlock/releases/tag/v0.1.0