diff --git a/python/packages/autogen-agentchat/src/autogen_agentchat/conditions/__init__.py b/python/packages/autogen-agentchat/src/autogen_agentchat/conditions/__init__.py
index 72b61745acf1..57346a54e460 100644
--- a/python/packages/autogen-agentchat/src/autogen_agentchat/conditions/__init__.py
+++ b/python/packages/autogen-agentchat/src/autogen_agentchat/conditions/__init__.py
@@ -30,3 +30,10 @@
     "FunctionCallTermination",
     "FunctionalTermination",
 ]
+
+from ._shackle_guard import ShackleGuard, ShackleGuardConfig
+
+__all__ = [
+    "ShackleGuard",
+    "ShackleGuardConfig",
+]
diff --git a/python/packages/autogen-agentchat/src/autogen_agentchat/conditions/_shackle_guard.py b/python/packages/autogen-agentchat/src/autogen_agentchat/conditions/_shackle_guard.py
new file mode 100644
index 000000000000..4d526049917c
--- /dev/null
+++ b/python/packages/autogen-agentchat/src/autogen_agentchat/conditions/_shackle_guard.py
@@ -0,0 +1,203 @@
+"""
+SHACKLE Termination Condition for AutoGen
+==========================================
+Budget-enforcing, loop-detecting termination condition for AutoGen agents.
+
+Usage:
+    from autogen_agentchat.conditions import ShackleGuard
+    guard = ShackleGuard(budget=0.25, max_repeat_calls=3)
+    team.run(task, termination_condition=guard)
+"""
+
+from __future__ import annotations
+
+import time
+from typing import Sequence
+
+from autogen_core import Component
+from pydantic import BaseModel
+from typing_extensions import Self
+
+from ..base import TerminatedException, TerminationCondition
+from ..messages import (
+    BaseAgentEvent,
+    BaseChatMessage,
+    StopMessage,
+    ToolCallExecutionEvent,
+    ToolCallRequestEvent,
+)
+
+
+class ShackleGuardConfig(BaseModel):
+    budget: float = 0.25
+    max_repeat_calls: int = 3
+    error_amplification: bool = True
+    timeout_seconds: int = 300
+
+
+class ShackleGuard(TerminationCondition, Component[ShackleGuardConfig]):
+    """Pre-execution circuit breaker for AutoGen teams.
+
+    Monitors tool calls across all agents in a team, enforces budgets,
+    detects runaway loops, and terminates the conversation when limits
+    are exceeded.
+
+    Implements the tri-state pattern:
+    - ALLOW: continue execution
+    - TERMINATE: circuit tripped, stop the team
+    - WARN: budget running low (human-readable warning in StopMessage)
+
+    Args:
+        budget: Maximum cumulative cost in USD before circuit opens
+        max_repeat_calls: Max identical tool calls before termination
+        error_amplification: Tighten limits on 401/403/500 error signals
+        timeout_seconds: Wall-clock timeout for the entire session
+    """
+
+    component_config_schema = ShackleGuardConfig
+    component_provider_override = "autogen_agentchat.conditions.ShackleGuard"
+
+    def __init__(
+        self,
+        budget: float = 0.25,
+        max_repeat_calls: int = 3,
+        error_amplification: bool = True,
+        timeout_seconds: int = 300,
+    ) -> None:
+        self._budget = budget
+        self._max_repeat_calls = max_repeat_calls
+        self._error_amplification = error_amplification
+        self._timeout_seconds = timeout_seconds
+
+        self._budget_spent: float = 0.0
+        self._total_calls: int = 0
+        self._repeat_counts: dict[str, int] = {}
+        self._last_tool: str = ""
+        self._last_args: str = ""
+        self._circuit_tripped: bool = False
+        self._circuit_reason: str = ""
+        self._start_time: float = time.time()
+
+        self._error_signals = (
+            "401", "unauthorized", "403", "forbidden", "500",
+            "internal server error", "timeout", "rate limit",
+            "quota exceeded", "token expired", "connection refused",
+        )
+
+    @property
+    def terminated(self) -> bool:
+        return self._circuit_tripped
+
+    async def __call__(
+        self, messages: Sequence[BaseAgentEvent | BaseChatMessage]
+    ) -> StopMessage | None:
+        if self._circuit_tripped:
+            raise TerminatedException("SHACKLE circuit already tripped")
+
+        for msg in messages:
+            # Check tool call requests (before execution)
+            if isinstance(msg, ToolCallRequestEvent):
+                for tc in msg.content:
+                    result = self._evaluate_request(tc.name, tc.arguments)
+                    if result:
+                        return result
+
+            # Check tool execution results (after execution)
+            if isinstance(msg, ToolCallExecutionEvent):
+                for tc in msg.content:
+                    result = self._evaluate_result(tc.name, str(tc.content))
+                    if result:
+                        return result
+
+        return None
+
+    def _evaluate_request(
+        self, tool_name: str, args: str
+    ) -> StopMessage | None:
+        """Evaluate a tool call BEFORE execution."""
+        # Timeout check
+        if time.time() - self._start_time > self._timeout_seconds:
+            self._circuit_tripped = True
+            self._circuit_reason = f"SHACKLE: session timeout ({self._timeout_seconds}s)"
+            return StopMessage(content=self._circuit_reason, source="ShackleGuard")
+
+        # Budget check
+        remaining = self._budget - self._budget_spent
+        if remaining <= 0:
+            self._circuit_tripped = True
+            self._circuit_reason = (
+                f"SHACKLE: budget exhausted "
+                f"(${self._budget_spent:.4f} / ${self._budget:.2f})"
+            )
+            return StopMessage(content=self._circuit_reason, source="ShackleGuard")
+
+        # Repeat detection
+        args_hash = str(hash(args))
+        is_repeat = tool_name == self._last_tool and args_hash == self._last_args
+        if is_repeat:
+            self._repeat_counts[tool_name] = self._repeat_counts.get(tool_name, 0) + 1
+            limit = self._max_repeat_calls
+
+            if self._error_amplification and self._error_in_args(args):
+                limit = max(1, limit - 1)
+
+            if self._repeat_counts[tool_name] >= limit:
+                self._circuit_tripped = True
+                self._circuit_reason = (
+                    f"SHACKLE: loop detected — "
+                    f"'{tool_name}' called {self._repeat_counts[tool_name]}x"
+                )
+                return StopMessage(content=self._circuit_reason, source="ShackleGuard")
+        else:
+            self._repeat_counts[tool_name] = 1
+
+        self._last_tool = tool_name
+        self._last_args = args_hash
+        return None
+
+    def _evaluate_result(
+        self, tool_name: str, content: str
+    ) -> StopMessage | None:
+        """Evaluate a tool result AFTER execution for error signals."""
+        if self._error_amplification and self._error_in_args(content):
+            # Error detected in result — amplify repeat limits
+            self._repeat_counts[tool_name] = self._repeat_counts.get(tool_name, 0) + 1
+
+        # Cost tracking
+        cost = {
+            "web_search": 0.001, "read_file": 0.0001,
+            "write_file": 0.0005, "execute_code": 0.005,
+            "call_api": 0.003, "query_db": 0.002,
+        }.get(tool_name, 0.001)
+
+        self._budget_spent += cost
+        self._total_calls += 1
+        return None
+
+    def _error_in_args(self, text: str) -> bool:
+        return any(s in text.lower() for s in self._error_signals)
+
+    async def reset(self) -> None:
+        self._budget_spent = 0.0
+        self._total_calls = 0
+        self._repeat_counts = {}
+        self._circuit_tripped = False
+        self._circuit_reason = ""
+        self._start_time = time.time()
+
+    def _to_config(self) -> ShackleGuardConfig:
+        return ShackleGuardConfig(
+            budget=self._budget,
+            max_repeat_calls=self._max_repeat_calls,
+            error_amplification=self._error_amplification,
+            timeout_seconds=self._timeout_seconds,
+        )
+
+    @classmethod
+    def _from_config(cls, config: ShackleGuardConfig) -> Self:
+        return cls(
+            budget=config.budget,
+            max_repeat_calls=config.max_repeat_calls,
+            error_amplification=config.error_amplification,
+            timeout_seconds=config.timeout_seconds,
+        )