diff --git a/tools/query.py b/tools/query.py
index 1f266e3..7212b7d 100644
--- a/tools/query.py
+++ b/tools/query.py
@@ -1,14 +1,14 @@
 # Copyright (c) Microsoft Corporation.
 # Licensed under the MIT License.
 
-__version__ = "0.2"
+__version__ = "0.3"
 
 ### Imports ###
 
 import argparse
 import asyncio
 from collections.abc import Mapping
-from dataclasses import dataclass
+from dataclasses import dataclass, field, replace
 import difflib
 import json
 import os
@@ -83,6 +83,63 @@ class SearchResultData(typing.TypedDict):
     results: list[RawSearchResultData]
 
 
+@dataclass
+class HistoryEntry:
+    """A single Q&A pair in conversation history."""
+
+    question: str
+    answer: str
+    had_answer: bool
+
+
+@dataclass
+class ConversationHistory:
+    """Tracks recent Q&A pairs for context resolution.
+
+    This enables the query engine to resolve pronouns and references
+    like "it", "she", or "the first point" by providing recent context
+    to the LLM during query translation.
+    """
+
+    entries: list[HistoryEntry] = field(default_factory=list)
+    max_entries: int = 5
+
+    def add(self, question: str, answer: str, had_answer: bool) -> None:
+        """Add a new Q&A pair, removing oldest if at capacity."""
+        self.entries.append(HistoryEntry(question, answer, had_answer))
+        if len(self.entries) > self.max_entries:
+            self.entries.pop(0)
+
+    def clear(self) -> None:
+        """Clear all history."""
+        self.entries.clear()
+
+    def to_prompt_section(self) -> typechat.PromptSection | None:
+        """Format history as a prompt section for LLM.
+
+        Returns None if there's no history to include.
+        """
+        if not self.entries:
+            return None
+
+        lines = [
+            "Recent conversation history (use this to resolve pronouns and references like 'it', 'he', 'she', 'the first point', etc.):"
+        ]
+        for i, entry in enumerate(self.entries, 1):
+            lines.append(f"Q{i}: {entry.question}")
+            if entry.had_answer:
+                answer = (
+                    entry.answer[:500] + "..."
+                    if len(entry.answer) > 500
+                    else entry.answer
+                )
+                lines.append(f"A{i}: {answer}")
+            else:
+                lines.append(f"A{i}: [No answer found]")
+
+        return typechat.PromptSection(role="user", content="\n".join(lines))
+
+
 @dataclass
 class ProcessingContext:
     query_context: query.QueryEvalContext
@@ -101,6 +158,7 @@ class ProcessingContext:
     ]
     lang_search_options: searchlang.LanguageSearchOptions
     answer_context_options: answers.AnswerContextOptions
+    history: ConversationHistory = field(default_factory=ConversationHistory)
 
     def __repr__(self) -> str:
         parts = []
@@ -114,6 +172,7 @@ def __repr__(self) -> str:
         parts.append(f"debug4={self.debug4}")
         parts.append(f"lang_search_options={self.lang_search_options}")
         parts.append(f"answer_context_options={self.answer_context_options}")
+        parts.append(f"history={len(self.history.entries)}/{self.history.max_entries}")
         return f"Context({', '.join(parts)})"
 
 
@@ -377,11 +436,69 @@ async def cmd_stats(context: ProcessingContext, args: list[str]) -> None:
     await print_conversation_stats(context.query_context.conversation)
 
 
+async def cmd_history(context: ProcessingContext, args: list[str]) -> None:
+    """Show or manage conversation history. Usage: @history [--clear] [--size N]
+
+    Without arguments, shows current history entries.
+    --clear: Clears all history.
+    --size N: Sets max history size (0 to disable history).
+
+    History is used to resolve pronouns and references in follow-up questions
+    like "it", "he", "she", or "the first point".
+    """
+
+    parser = argparse.ArgumentParser(prog="@history", add_help=True)
+    parser.add_argument("--clear", action="store_true", help="Clear history")
+    parser.add_argument("--size", type=int, help="Set max history size")
+    ns = _parse_command_args(parser, args)
+    if ns is None:
+        return
+
+    if ns.clear:
+        context.history.clear()
+        print("History cleared.")
+        return
+
+    if ns.size is not None:
+        context.history.max_entries = ns.size
+        while len(context.history.entries) > ns.size:
+            context.history.entries.pop(0)
+        print(f"History size set to {ns.size}.")
+        return
+
+    if not context.history.entries:
+        print(
+            f"No history yet (max {context.history.max_entries} entries). "
+            "Ask some questions first."
+        )
+        return
+
+    print(
+        f"Conversation history "
+        f"({len(context.history.entries)}/{context.history.max_entries} entries):"
+    )
+    for i, entry in enumerate(context.history.entries, 1):
+        q_preview = (
+            entry.question[:70] + "..." if len(entry.question) > 70 else entry.question
+        )
+        a_preview = (
+            entry.answer[:70] + "..." if len(entry.answer) > 70 else entry.answer
+        )
+        status = (
+            Fore.GREEN + "✓" + Fore.RESET
+            if entry.had_answer
+            else Fore.RED + "✗" + Fore.RESET
+        )
+        print(f"  {i}. [{status}] Q: {q_preview}")
+        print(f"         A: {a_preview}")
+
+
 commands: dict[str, CommandHandler] = {
     "help": cmd_help,
     "debug": cmd_debug,
     "stage": cmd_stage,
     "stats": cmd_stats,
+    "history": cmd_history,
 }
 
 
@@ -478,6 +595,7 @@ async def main():
         answers.AnswerContextOptions(
             entities_top_k=50, topics_top_k=50, messages_top_k=None, chunking=None
         ),
+        ConversationHistory(max_entries=args.history_size),
     )
 
     if args.verbose:
@@ -669,11 +787,20 @@ async def process_query(context: ProcessingContext, query_text: str) -> float |
                 )
         prsep()
 
+    history_section = context.history.to_prompt_section()
+    if history_section:
+        lang_search_options = replace(
+            context.lang_search_options,
+            model_instructions=[history_section],
+        )
+    else:
+        lang_search_options = context.lang_search_options
+
     result = await searchlang.search_conversation_with_language(
         context.query_context.conversation,
         context.query_translator,
         query_text,
-        context.lang_search_options,
+        lang_search_options,
         debug_context=debug_context,
     )
     if isinstance(result, typechat.Failure):
@@ -743,6 +870,12 @@ async def process_query(context: ProcessingContext, query_text: str) -> float |
         options=context.answer_context_options,
     )
 
+    if context.history.max_entries > 0:
+        if combined_answer.type == "Answered":
+            context.history.add(query_text, combined_answer.answer or "", True)
+        else:
+            context.history.add(query_text, combined_answer.whyNoAnswer or "", False)
+
     if context.debug4 == "full":
         utils.pretty_print(all_answers)
         prsep()
@@ -841,6 +974,13 @@ def make_arg_parser(description: str) -> argparse.ArgumentParser:
         action="store_true",
         help="Show verbose startup information and timing logs",
     )
+    parser.add_argument(
+        "--history-size",
+        type=int,
+        default=5,
+        help="Number of recent Q&A pairs to keep for resolving pronouns/references "
+        "(default: 5, 0 to disable)",
+    )
 
     batch = parser.add_argument_group("Batch mode options")
     batch.add_argument(
diff --git a/uv.lock b/uv.lock
index 477717f..d54e8dc 100644
--- a/uv.lock
+++ b/uv.lock
@@ -1778,7 +1778,7 @@ wheels = [
 
 [[package]]
 name = "typeagent"
-version = "0.3.2"
+version = "0.3.3"
 source = { editable = "." }
 dependencies = [
     { name = "azure-identity" },