diff --git a/server/src/main.rs b/server/src/main.rs
index 7339b2e..bfc240e 100644
--- a/server/src/main.rs
+++ b/server/src/main.rs
@@ -127,6 +127,82 @@ async fn index_committer_worker(state: Arc<MemoryState>) {
     }
 }
 
+async fn condense_graph_worker(state: Arc<MemoryState>) {
+    loop {
+        tokio::time::sleep(Duration::from_secs(3600)).await;
+
+        let threshold: usize = std::env::var("MCP_MEMORY_CONDENSE_THRESHOLD")
+            .unwrap_or_else(|_| "100".to_string())
+            .parse()
+            .unwrap_or(100);
+
+        let now = std::time::SystemTime::now()
+            .duration_since(std::time::UNIX_EPOCH)
+            .unwrap_or_default()
+            .as_secs();
+
+        // Condense sticky notes
+        let mut condensed_sticky_content = String::new();
+        state.sticky.modify(|notes| {
+            if notes.len() > threshold {
+                notes.sort_by_key(|n| n.timestamp);
+                let to_remove = notes.len() - (threshold / 2);
+                let removed: Vec<_> = notes.drain(0..to_remove).collect();
+                for r in removed {
+                    condensed_sticky_content.push_str(&format!("{}\n", r.content));
+                }
+            }
+        });
+
+        if !condensed_sticky_content.is_empty() {
+            state.modify_graph(|graph| {
+                let name = format!("StickyNote History {}", now);
+                graph.entities.insert(
+                    name.clone(),
+                    crate::models::Entity {
+                        name: name.clone(),
+                        entity_type: "Historical Summary".to_string(),
+                        observations: vec![condensed_sticky_content],
+                        namespace: crate::models::default_namespace(),
+                        git_branch: None,
+                    },
+                );
+            });
+            tracing::info!("Condensed sticky notes into Historical Summary.");
+        }
+
+        // Condense snippets
+        let mut condensed_snippet_content = String::new();
+        state.snippets.modify(|snippets| {
+            if snippets.len() > threshold {
+                snippets.sort_by_key(|s| s.updated_at);
+                let to_remove = snippets.len() - (threshold / 2);
+                let removed: Vec<_> = snippets.drain(0..to_remove).collect();
+                for r in removed {
+                    condensed_snippet_content.push_str(&format!("Name: {}\nDesc: {}\nCode: {}\n", r.name, r.description, r.code));
+                }
+            }
+        });
+
+        if !condensed_snippet_content.is_empty() {
+            state.modify_graph(|graph| {
+                let name = format!("Snippet History {}", now);
+                graph.entities.insert(
+                    name.clone(),
+                    crate::models::Entity {
+                        name: name.clone(),
+                        entity_type: "Historical Summary".to_string(),
+                        observations: vec![condensed_snippet_content],
+                        namespace: crate::models::default_namespace(),
+                        git_branch: None,
+                    },
+                );
+            });
+            tracing::info!("Condensed snippets into Historical Summary.");
+        }
+    }
+}
+
 async fn run_server(state: Arc<MemoryState>) -> Result<(), Box<dyn std::error::Error>> {
     let state_for_index = Arc::clone(&state);
     tokio::spawn(async move {
@@ -139,6 +215,7 @@ async fn run_server(state: Arc<MemoryState>) -> Result<(), Box<dyn std::error::E
 
     tokio::spawn(index_committer_worker(Arc::clone(&state)));
     tokio::spawn(ttl_sweeper_worker(Arc::clone(&state)));
+    tokio::spawn(condense_graph_worker(Arc::clone(&state)));
     crate::clipboard_watcher::spawn_watcher(Arc::clone(&state));
     crate::watcher::spawn_watcher(Arc::clone(&state));
     let (shutdown_tx, shutdown_rx) = tokio::sync::oneshot::channel();