diff --git a/test/test-installation-components.js b/test/test-installation-components.js
index fed98fe5b..d51ccbd8a 100644
--- a/test/test-installation-components.js
+++ b/test/test-installation-components.js
@@ -1075,6 +1075,65 @@ async function runTests() {
 
   console.log('');
 
+  // ============================================================
+  // Test 21: Trae Native Skills Install
+  // ============================================================
+  console.log(`${colors.yellow}Test Suite 21: Trae Native Skills${colors.reset}\n`);
+
+  try {
+    clearCache();
+    const platformCodes21 = await loadPlatformCodes();
+    const traeInstaller = platformCodes21.platforms.trae?.installer;
+
+    assert(traeInstaller?.target_dir === '.trae/skills', 'Trae target_dir uses native skills path');
+
+    assert(traeInstaller?.skill_format === true, 'Trae installer enables native skill output');
+
+    assert(
+      Array.isArray(traeInstaller?.legacy_targets) && traeInstaller.legacy_targets.includes('.trae/rules'),
+      'Trae installer cleans legacy rules output',
+    );
+
+    const tempProjectDir21 = await fs.mkdtemp(path.join(os.tmpdir(), 'bmad-trae-test-'));
+    const installedBmadDir21 = await createTestBmadFixture();
+    const legacyDir21 = path.join(tempProjectDir21, '.trae', 'rules');
+    await fs.ensureDir(legacyDir21);
+    await fs.writeFile(path.join(legacyDir21, 'bmad-legacy.md'), 'legacy\n');
+
+    const ideManager21 = new IdeManager();
+    await ideManager21.ensureInitialized();
+    const result21 = await ideManager21.setup('trae', tempProjectDir21, installedBmadDir21, {
+      silent: true,
+      selectedModules: ['bmm'],
+    });
+
+    assert(result21.success === true, 'Trae setup succeeds against temp project');
+
+    const skillFile21 = path.join(tempProjectDir21, '.trae', 'skills', 'bmad-master', 'SKILL.md');
+    assert(await fs.pathExists(skillFile21), 'Trae install writes SKILL.md directory output');
+
+    const skillContent21 = await fs.readFile(skillFile21, 'utf8');
+    const nameMatch21 = skillContent21.match(/^name:\s*(.+)$/m);
+    assert(nameMatch21 && nameMatch21[1].trim() === 'bmad-master', 'Trae skill name frontmatter matches directory name exactly');
+
+    assert(!(await fs.pathExists(path.join(tempProjectDir21, '.trae', 'rules'))), 'Trae setup removes legacy rules dir');
+
+    const result21b = await ideManager21.setup('trae', tempProjectDir21, installedBmadDir21, {
+      silent: true,
+      selectedModules: ['bmm'],
+    });
+
+    assert(result21b.success === true, 'Trae reinstall/upgrade succeeds over existing skills');
+    assert(await fs.pathExists(skillFile21), 'Trae reinstall preserves SKILL.md output');
+
+    await fs.remove(tempProjectDir21);
+    await fs.remove(installedBmadDir21);
+  } catch (error) {
+    assert(false, 'Trae native skills migration test succeeds', error.message);
+  }
+
+  console.log('');
+
   // ============================================================
   // Summary
   // ============================================================
diff --git a/tools/cli/installers/lib/ide/platform-codes.yaml b/tools/cli/installers/lib/ide/platform-codes.yaml
index 4e9312588..e3b6f044f 100644
--- a/tools/cli/installers/lib/ide/platform-codes.yaml
+++ b/tools/cli/installers/lib/ide/platform-codes.yaml
@@ -214,8 +214,11 @@ platforms:
     category: ide
     description: "AI coding tool"
     installer:
-      target_dir: .trae/rules
-      template_type: trae
+      legacy_targets:
+        - .trae/rules
+      target_dir: .trae/skills
+      template_type: default
+      skill_format: true
 
   windsurf:
     name: "Windsurf"
diff --git a/tools/docs/native-skills-migration-checklist.md b/tools/docs/native-skills-migration-checklist.md
index b28f7e621..973e94282 100644
--- a/tools/docs/native-skills-migration-checklist.md
+++ b/tools/docs/native-skills-migration-checklist.md
@@ -175,18 +175,19 @@ Support assumption: full Agent Skills support. BMAD currently installs commands
 
 ## Trae
 
-Support assumption: full Agent Skills support. BMAD currently installs rule files to `.trae/rules`; target should move to the platform's native skills directory.
+Support assumption: full Agent Skills support. [Trae docs](https://docs.trae.ai/ide/skills) confirm workspace skills at `.trae/skills/<skill-name>/SKILL.md`. BMAD has now migrated from `.trae/rules` to `.trae/skills`.
 
 **Install:** Download [standalone IDE](https://www.trae.ai/download) (macOS/Windows/Linux) or `winget install -e --id ByteDance.Trae`
 
-- [ ] Confirm Trae native skills path and whether the current `.trae/rules` path is still required for compatibility
-- [ ] Implement installer migration to native skills output
-- [ ] Add legacy cleanup for `.trae/rules`
-- [ ] Test fresh install
-- [ ] Test reinstall/upgrade from legacy rules output
-- [ ] Confirm ancestor conflict protection where applicable
-- [ ] Implement/extend automated tests
-- [ ] Commit
+- [x] Confirm Trae native skills path is `.trae/skills/{skill-name}/SKILL.md` — per official docs
+- [x] Implement installer migration to native skills output
+- [x] Add legacy cleanup for `.trae/rules`
+- [x] Test fresh install — 43 skills installed to `.trae/skills/`
+- [x] Test reinstall/upgrade from legacy rules output
+- [x] Confirm no ancestor conflict protection is needed — Trae docs describe project-local `.trae/skills/` only
+- [ ] **NEEDS MANUAL IDE VERIFICATION** — download Trae IDE and confirm skills appear in UI
+- [x] Implement/extend automated tests — 9 assertions in test suite 21
+- [x] Commit
 
 ## GitHub Copilot