diff --git a/cluster/manager.go b/cluster/manager.go
index 3f0a572..aa1d043 100644
--- a/cluster/manager.go
+++ b/cluster/manager.go
@@ -46,6 +46,37 @@ func New() *Manager {
 	}
 }
 
+// detectInClusterNamespace reads the namespace from the service account file
+// that Kubernetes mounts into pods. Returns "default" if the file cannot be read.
+func detectInClusterNamespace() string {
+	return readNamespaceFromFile("/var/run/secrets/kubernetes.io/serviceaccount/namespace")
+}
+
+// readNamespaceFromFile reads the namespace from a file, with fallback to "default"
+// This function is extracted to enable testing without filesystem dependencies
+func readNamespaceFromFile(namespaceFile string) string {
+	// #nosec G304 - This is a well-known Kubernetes file path that is safe to read
+	data, err := os.ReadFile(namespaceFile)
+	if err != nil {
+		// If we can't read the file, fall back to "default"
+		slog.Debug("failed to read namespace from service account file, using default",
+			slog.String("file", namespaceFile),
+			slog.String("error", err.Error()),
+		)
+		return "default"
+	}
+
+	namespace := strings.TrimSpace(string(data))
+	if namespace == "" {
+		slog.Debug("namespace file was empty, using default",
+			slog.String("file", namespaceFile),
+		)
+		return "default"
+	}
+
+	return namespace
+}
+
 // LoadInClusterConfig loads the in-cluster Kubernetes configuration
 // This is used when kai is running inside a Kubernetes pod
 func (cm *Manager) LoadInClusterConfig(name string) error {
@@ -78,11 +109,14 @@ func (cm *Manager) LoadInClusterConfig(name string) error {
 		return fmt.Errorf("failed to connect to cluster: %w", err)
 	}
 
+	// Detect the actual namespace from the service account file
+	namespace := detectInClusterNamespace()
+
 	contextInfo := &kai.ContextInfo{
 		Name:       name,
 		Cluster:    "in-cluster",
 		User:       "service-account",
-		Namespace:  "default",
+		Namespace:  namespace,
 		ServerURL:  config.Host,
 		ConfigPath: "",
 		IsActive:   true,
@@ -97,6 +131,7 @@ func (cm *Manager) LoadInClusterConfig(name string) error {
 	slog.Info("in-cluster config loaded",
 		slog.String("context", name),
 		slog.String("server", config.Host),
+		slog.String("namespace", namespace),
 	)
 
 	return nil
diff --git a/cluster/manager_test.go b/cluster/manager_test.go
index f98daeb..25d64db 100644
--- a/cluster/manager_test.go
+++ b/cluster/manager_test.go
@@ -50,6 +50,7 @@ func TestExtendedClusterManager(t *testing.T) {
 
 func TestInClusterConfig(t *testing.T) {
 	t.Run("LoadInClusterConfig", testLoadInClusterConfig)
+	t.Run("DetectInClusterNamespace", testDetectInClusterNamespace)
 }
 
 func testLoadInClusterConfig(t *testing.T) {
@@ -86,6 +87,54 @@ func testLoadInClusterConfig(t *testing.T) {
 	})
 }
 
+func testDetectInClusterNamespace(t *testing.T) {
+	t.Run("FileDoesNotExist", func(t *testing.T) {
+		// When the file doesn't exist (normal case outside cluster), should return "default"
+		namespace := readNamespaceFromFile("/nonexistent/path/namespace")
+		assert.Equal(t, "default", namespace)
+	})
+
+	t.Run("FileExistsWithNamespace", func(t *testing.T) {
+		// Create a temporary file that simulates the service account namespace file
+		tmpDir := t.TempDir()
+		namespaceFile := filepath.Join(tmpDir, "namespace")
+		err := os.WriteFile(namespaceFile, []byte("my-custom-namespace\n"), 0644)
+		require.NoError(t, err)
+
+		namespace := readNamespaceFromFile(namespaceFile)
+		assert.Equal(t, "my-custom-namespace", namespace)
+	})
+
+	t.Run("FileIsEmpty", func(t *testing.T) {
+		// Create a temporary empty file
+		tmpDir := t.TempDir()
+		namespaceFile := filepath.Join(tmpDir, "namespace")
+		err := os.WriteFile(namespaceFile, []byte(""), 0644)
+		require.NoError(t, err)
+
+		namespace := readNamespaceFromFile(namespaceFile)
+		assert.Equal(t, "default", namespace)
+	})
+
+	t.Run("FileWithWhitespace", func(t *testing.T) {
+		// Create a file with leading/trailing whitespace
+		tmpDir := t.TempDir()
+		namespaceFile := filepath.Join(tmpDir, "namespace")
+		err := os.WriteFile(namespaceFile, []byte("  production  \n"), 0644)
+		require.NoError(t, err)
+
+		namespace := readNamespaceFromFile(namespaceFile)
+		assert.Equal(t, "production", namespace)
+	})
+
+	t.Run("DefaultFunctionBehavior", func(t *testing.T) {
+		// Test that detectInClusterNamespace calls readNamespaceFromFile with correct path
+		// Since the actual file won't exist in test environment, it should return "default"
+		namespace := detectInClusterNamespace()
+		assert.Equal(t, "default", namespace)
+	})
+}
+
 func testNewClusterManager(t *testing.T) {
 	cm := New()
 	assert.NotNil(t, cm)