diff --git a/backend/agents/conversation.py b/backend/agents/conversation.py
index 8579b86..e4e6437 100644
--- a/backend/agents/conversation.py
+++ b/backend/agents/conversation.py
@@ -34,16 +34,27 @@ Return your response as a JSON object with this format:
 
 memory_compress_system_prompt = """
 You are an assistant that receives a list of memory items and a current conversation; you must identify and return only the most important and relevant memories that help understand the conversation or move it forward, removing duplicates or very similar entries.
-Output a JSON list of strings with each selected memory, for example:
+
+# Instructions
+- Think carefully about what's important for the character to remember in this context. Write down your reasoning and keep it shorter than 100 words, shorter than 50 even.
+- If conflicting information is presented or context is ambiguous, state it in your reasoning.
+- Take special care to state and address the most recent topic touched in the conversation.
+- Based on your own analysis, generate the required JSON object. Stop your answer after this.
+
+# Format
+Write a justification paragraph, and then output a JSON list of strings with each selected memory, for example:
 ["First memory","Second memory"]
 """.strip()
 
 chat_prompt_template = Template("""
-Recent Memories:
+# Recent Memories
 $memories
 
-Recent Conversation:
+# Recent Conversation
 $conversation
+
+# Last Exchange
+$last_exchange
 """.strip())
 
 topic_prompt_template = Template("""
@@ -71,7 +82,7 @@ If there are no relevant memories to extract, it is ok to respond simply with an
 
 memory_compress_prompt_template = Template("""
 # Memories
-Following are all the known memories. Each memory is in its own line.
+Following are all the known memories. Each memory is in a separate line.
 
 $memories
 
@@ -116,11 +127,6 @@ class ConversationAgent(Agent):
 
         saved_context = ThreadContext(self.app.get_agent_resource(self.id, 'last-thread-context', message.chat_id))
         chat_view = self.app.get_chat_view(message.chat_id)
-        print("ChatView:\n" + chat_view.debug_string())
-
-        print("Saved context thread:", saved_context.current_thread_id)
-        print("Current thread:", message.thread_id)
-        print("Message", message.content)
 
         if message.thread_id != saved_context.current_thread_id:
             # the incoming message is not from the same thread that the agent was last aware of
@@ -134,12 +140,14 @@ class ConversationAgent(Agent):
         current_thread = chat_view.get_thread(message.thread_id)
         memories = await self.retrieve_memories_for_thread(current_thread)
 
-        chat_summary = self.serialize_thread_history(current_thread)
+        chat_summary = self.serialize_thread_history(current_thread, ignore_message_ids=[message.id])
         messages = [
             LlamaMessage("system", chat_system_prompt_template.substitute(role=self.system_prompt)),
             LlamaMessage("user", chat_prompt_template.substitute(
                 conversation=chat_summary,
                 memories="\n".join(memories),
+                # TODO: the last agent message should be added here too, and any unaddressed message in between
+                last_exchange=self.serialize_message_list([message])
             )),
         ]
 
@@ -154,14 +162,17 @@ class ConversationAgent(Agent):
         # TODO: drop the chat context lock
 
     # Encode a thread's messages as a string to pass to the agent
-    def serialize_thread_history(self, thread):
+    def serialize_thread_history(self, thread, ignore_message_ids=[]):
+        return self.serialize_message_list([m for m in thread.messages if m.id not in ignore_message_ids])
+
+    def serialize_message_list(self, messages):
         def sender_name(message):
             sender = message.sender
             is_digit = isinstance(sender, (int, str)) and str(sender).isdigit()
             is_self = is_digit and str(sender) == str(self.id)
             return self.name if is_self else sender
         
-        return "\n".join(f"[{sender_name(message)}]: {message.content}" for message in thread.messages)
+        return "\n".join(f"[{sender_name(message)}]: {message.content}" for message in messages)
     
     def get_memory_collection(self):
         collection_name = f"agent_{self.id}_memory"