diff --git a/server.py b/server.py
index 564e61d..9754f7e 100644
--- a/server.py
+++ b/server.py
@@ -41,6 +41,9 @@ def resolve_vaults_root(cli_arg: str | None = None) -> Path:
 VAULTS_ROOT: Path = Path(".")  # set on startup
 OBSIDIAN_HIDDEN = {".obsidian", ".trash", ".git", ".DS_Store", "node_modules"}
 MARKDOWN_EXT = {".md", ".markdown"}
+DEFAULT_EXCLUDE_EXT = {".webp", ".png", ".jpg", ".jpeg", ".gif", ".svg",
+                       ".pdf", ".mp4", ".mp3", ".mov", ".excalidraw", ".bmp",
+                       ".ico", ".tiff", ".heic", ".avif"}
 
 
 # ── Helpers ───────────────────────────────────────────────────────────────
@@ -187,14 +190,17 @@ def list_vault(
     recursive: bool = False,
     include_files: bool = True,
     include_directories: bool = True,
-    file_extensions: list[str] | None = None,
+    file_extensions: list[str] | None = None,  # None = all; pass ['.md'] for notes only
+    exclude_extensions: list[str] | None = None,  # None = default image blacklist (see below)
     include_hidden: bool = False,
 ) -> dict[str, Any]:
     """FILESYSTEM TOOL (not memory) — Index files and folders in vault on disk. Use to see structure before reading docs.
 
-    Returns a lean listing (name + path + type only). Use get_file_info for
-    size/date/counts on a specific file. Hidden dirs (.obsidian, .git, .trash)
-    are excluded by default.
+    Returns a lean listing (name + path + type only). Image/binary files (.webp,
+    .png, .jpg, .gif, .svg, .pdf, .mp4, .mp3, .mov, .excalidraw) are excluded by
+    default — the model can't read them anyway. Pass exclude_extensions=[] to see
+    everything. Use get_file_info for size/date/counts on a specific file.
+    Hidden dirs are excluded by default.
 
     Args:
         vault_name: Name of the vault (subdirectory name under vaults root)
@@ -204,14 +210,18 @@ def list_vault(
         recursive: If True, list all nested contents recursively.
         include_files: Include files in results (default True).
         include_directories: Include directories in results (default True).
-        file_extensions: Optional filter — only return files with these extensions
-            (e.g. ['.md', '.canvas']). Case-insensitive.
+        file_extensions: Filter files by extension. Pass ['.md'] for notes only,
+            ['.md', '.canvas'] for notes + canvases, or omit/None for all files.
+        exclude_extensions: Extensions to EXCLUDE. Defaults to binary/image types
+            (webp, png, jpg, gif, svg, pdf, mp4, mp3, mov, excalidraw).
+            Pass [] to disable the blacklist.
         include_hidden: If True, include .obsidian config directory (default False).
 
     Usage:
-        list_vault("obsidian-skt")              → root index
-        list_vault("obsidian-skt", "", True)     → recursive index
-        list_vault("obsidian-skt", "NPCs")       → subfolder
+        list_vault("obsidian-skt")                      → all files (images excluded) at root
+        list_vault("obsidian-skt", file_extensions=['.md'])  → notes only
+        list_vault("obsidian-skt", "", True, file_extensions=['.md'])  → all notes recursively
+        list_vault("obsidian-skt", exclude_extensions=[])  → everything including images
 
     Returns:
         directories: [{name, path, type}]
@@ -229,6 +239,12 @@ def list_vault(
     if not target.exists():
         return {"error": f"Path not found: {path or '/'}", "vault": vault_name}
 
+    # Resolve exclude list: explicit arg > default image blacklist
+    if exclude_extensions is None:
+        exclude_set = DEFAULT_EXCLUDE_EXT
+    else:
+        exclude_set = {e.lower() for e in exclude_extensions}
+
     directories = []
     files = []
 
@@ -256,6 +272,8 @@ def list_vault(
                 ext_lower = entry.suffix.lower()
                 if not any(ext_lower == fe.lower() for fe in file_extensions):
                     continue
+            if entry.suffix.lower() in exclude_set:
+                continue
             files.append(info)
 
     return {