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Outcome School · AI agents19 min read

by Amit Shekhar · 8 May 2026

Context Engineering

Context Engineering - what it is, why it has become the most important skill for building reliable AI applications, how it differs from Prompt Engineering, the components that make up the context, common patterns like RAG, few-shot examples, tools, and memory, and the best practices and common mistakes to keep in mind.

3,694 words#ai-agent#llm#ai#machine-learning4 recall cards

Context Engineering
Read on Outcome School ↗then come back to lock it in
Before you read, guess

How does the text characterize an LLM's memory and the role of context engineering?

Ten seconds, a guess, then read — a wrong guess still makes the answer stick.

What this article covers

  1. What is Context Engineering?
  2. The Big Picture
  3. Why Context Engineering Matters
  4. Prompt Engineering vs Context Engineering
  5. The Components of the Context
  6. Common Patterns in Context Engineering
  7. Common Mistakes to Avoid
  8. Best Practices

The article lives on outcomeschool.com. Read it there, then come back: the tutor in the margin has read it and will answer questions, and the questions below check what stayed.

Before you go

In one sentence, what was this chapter about?

From memory, without scrolling up. Writing it is what makes it yours; the grade is only to show you what you had.

How sure?