diff --git a/mesa_llm/memory/st_lt_memory.py b/mesa_llm/memory/st_lt_memory.py
index a4de6836..6b53c1c0 100644
--- a/mesa_llm/memory/st_lt_memory.py
+++ b/mesa_llm/memory/st_lt_memory.py
@@ -72,30 +72,46 @@ def __init__(
 
         self.llm.system_prompt = self.system_prompt
 
-    def _build_consolidation_prompt(self) -> str:
+    def _build_consolidation_prompt(
+        self, popped_memories: list[MemoryEntry] | None = None
+    ) -> str:
         """
         Prompt builder function to reduce redundancy
         """
+        if popped_memories:
+            lines = []
+            for st_memory_entry in popped_memories:
+                lines.append(
+                    f"Step {st_memory_entry.step}: \n{st_memory_entry.content}"
+                )
+            short_term_str = "\n".join(lines)
+        else:
+            short_term_str = self.format_short_term()
+
         return f"""
             Short term memory:
-                {self.format_short_term()}
+                {short_term_str}
             Long term memory:
                 {self.long_term_memory}
         """
 
-    def _update_long_term_memory(self):
+    def _update_long_term_memory(
+        self, popped_memories: list[MemoryEntry] | None = None
+    ):
         """
         Update the long term memory by summarizing the short term memory with a LLM
         """
-        prompt = self._build_consolidation_prompt()
+        prompt = self._build_consolidation_prompt(popped_memories)
         response = self.llm.generate(prompt)
         self.long_term_memory = response.choices[0].message.content
 
-    async def _aupdate_long_term_memory(self):
+    async def _aupdate_long_term_memory(
+        self, popped_memories: list[MemoryEntry] | None = None
+    ):
         """
         Async Function to update long term memory
         """
-        prompt = self._build_consolidation_prompt()
+        prompt = self._build_consolidation_prompt(popped_memories)
         response = await self.llm.agenerate(prompt)
         self.long_term_memory = response.choices[0].message.content
 
@@ -130,14 +146,14 @@ def _process_step_core(self, pre_step: bool):
         self.short_term_memory.append(new_entry)
         self.step_content = {}
 
-        should_consolidate = False
+        popped_memories = []
         if (
             len(self.short_term_memory)
             > self.capacity + (self.consolidation_capacity or 0)
             and self.consolidation_capacity
         ):
-            self.short_term_memory.popleft()
-            should_consolidate = True
+            for _ in range(self.consolidation_capacity):
+                popped_memories.append(self.short_term_memory.popleft())
 
         elif (
             len(self.short_term_memory) > self.capacity
@@ -145,16 +161,16 @@ def _process_step_core(self, pre_step: bool):
         ):
             self.short_term_memory.popleft()
 
-        return new_entry, should_consolidate
+        return new_entry, popped_memories
 
     def process_step(self, pre_step: bool = False):
         """
         Synchronous memory step handler
         """
-        new_entry, should_consolidate = self._process_step_core(pre_step)
+        new_entry, popped_memories = self._process_step_core(pre_step)
 
-        if should_consolidate:
-            self._update_long_term_memory()
+        if popped_memories:
+            self._update_long_term_memory(popped_memories)
 
         if new_entry and self.display:
             new_entry.display()
@@ -163,10 +179,10 @@ async def aprocess_step(self, pre_step: bool = False):
         """
         Async memory step handler (non-blocking consolidation)
         """
-        new_entry, should_consolidate = self._process_step_core(pre_step)
+        new_entry, popped_memories = self._process_step_core(pre_step)
 
-        if should_consolidate:
-            await self._aupdate_long_term_memory()
+        if popped_memories:
+            await self._aupdate_long_term_memory(popped_memories)
 
         if new_entry and self.display:
             new_entry.display()
diff --git a/tests/test_memory/test_STLT_memory.py b/tests/test_memory/test_STLT_memory.py
index c0d90696..36296c0d 100644
--- a/tests/test_memory/test_STLT_memory.py
+++ b/tests/test_memory/test_STLT_memory.py
@@ -200,3 +200,84 @@ def test_get_prompt_ready_returns_str_when_empty(self, mock_agent):
         )
         assert "Short term memory:" in result
         assert "Long term memory:" in result
+
+    def test_memory_does_not_drop_oldest_during_consolidation(
+        self, mock_agent, mock_llm, llm_response_factory
+    ):
+        """
+        Verify that the oldest entry in short-term memory is still present when
+        building the consolidation prompt. Fixes Issue #186.
+        """
+        mock_llm.generate.return_value = llm_response_factory(
+            "Consolidated memory summary"
+        )
+
+        memory = STLTMemory(
+            agent=mock_agent,
+            short_term_capacity=2,
+            consolidation_capacity=1,
+            llm_model="provider/test_model",
+        )
+        memory.llm = mock_llm
+
+        # Fill to capacity + consolidation_capacity + 1 to trigger consolidation
+        with patch("rich.console.Console"):
+            for i in range(4):
+                memory.step_content = {"observation": f"critical event at step {i}"}
+                memory.process_step(pre_step=True)
+                mock_agent.model.steps = i + 1
+                memory.step_content = {"action": f"response to step {i}"}
+                memory.process_step()
+
+        # Get the arguments passed to llm.generate during consolidation
+        call_args = mock_llm.generate.call_args[0][0]
+
+        # The oldest entry MUST be in the prompt sent to the LLM
+        assert "critical event at step 0" in call_args, (
+            "Oldest memory entry was silently dropped before consolidation!"
+        )
+
+    def test_memory_pops_and_summarizes_exact_k_items(
+        self, mock_agent, mock_llm, llm_response_factory
+    ):
+        """
+        Verify that exactly consolidation_capacity items are popped when capacity is exceeded
+        and ONLY those popped items are sent to the LLM for summarization. Issue #107.
+        """
+        mock_llm.generate.return_value = llm_response_factory(
+            "Consolidated memory summary"
+        )
+
+        memory = STLTMemory(
+            agent=mock_agent,
+            short_term_capacity=2,
+            consolidation_capacity=2,
+            llm_model="provider/test_model",
+        )
+        memory.llm = mock_llm
+
+        # We will add 5 items. The first 4 fill the capacity + consolidation_capacity (2 + 2 = 4).
+        # When the 5th item is added, consolidation should trigger.
+        with patch("rich.console.Console"):
+            for i in range(5):
+                memory.step_content = {"observation": f"event at step {i}"}
+                memory.process_step(pre_step=True)
+                mock_agent.model.steps = i + 1
+                memory.step_content = {"action": f"response to step {i}"}
+                memory.process_step()
+
+        # At the 5th item (i=4), consolidation is triggered.
+        # So exactly 'consolidation_capacity' (2) items are popped (items i=0 and i=1)
+        # And the remaining queue should have capacity (2) + 1 (new entry) = 3 items (i=2, i=3, i=4)
+        assert len(memory.short_term_memory) == 3
+
+        call_args = mock_llm.generate.call_args[0][0]
+
+        # The prompt should contain only the popped items (0 and 1)
+        assert "event at step 0" in call_args
+        assert "event at step 1" in call_args
+
+        # The prompt MUST NOT contain items that were NOT popped (2, 3, 4)
+        assert "event at step 2" not in call_args
+        assert "event at step 3" not in call_args
+        assert "event at step 4" not in call_args