diff --git a/scripts/README.md b/scripts/README.md
index 6dbc30a..1554c14 100644
--- a/scripts/README.md
+++ b/scripts/README.md
@@ -76,6 +76,7 @@ All executables are created in the `src-tauri/binaries/` directory with the foll
 - **Cross-platform**: Supports all major operating systems and architectures
 - **CPU Variants**: Modern variants for newer CPUs (2013+), baseline for compatibility
 - **Self-contained**: No external dependencies required at runtime
+- **Tauri Integration**: Automatic sidecar binary naming for seamless Tauri integration
 
 ## Requirements
 
diff --git a/src-tauri/capabilities/default.json b/src-tauri/capabilities/default.json
index f51af53..9c3242d 100644
--- a/src-tauri/capabilities/default.json
+++ b/src-tauri/capabilities/default.json
@@ -11,6 +11,26 @@
     "shell:allow-execute",
     "shell:allow-spawn",
     "shell:allow-open",
+    {
+      "identifier": "shell:allow-execute",
+      "allow": [
+        {
+          "name": "claude-code",
+          "sidecar": true,
+          "args": true
+        }
+      ]
+    },
+    {
+      "identifier": "shell:allow-spawn",
+      "allow": [
+        {
+          "name": "claude-code",
+          "sidecar": true,
+          "args": true
+        }
+      ]
+    },
     "fs:default",
     "fs:allow-mkdir",
     "fs:allow-read",
diff --git a/src-tauri/src/claude_binary.rs b/src-tauri/src/claude_binary.rs
index f5b8a85..0b7691e 100644
--- a/src-tauri/src/claude_binary.rs
+++ b/src-tauri/src/claude_binary.rs
@@ -3,38 +3,59 @@ use log::{debug, error, info, warn};
 use serde::{Deserialize, Serialize};
 use std::cmp::Ordering;
 /// Shared module for detecting Claude Code binary installations
-/// Supports NVM installations, aliased paths, and version-based selection
+/// Supports NVM installations, aliased paths, version-based selection, and bundled sidecars
 use std::path::PathBuf;
 use std::process::Command;
 use tauri::Manager;
 
+/// Type of Claude installation
+#[derive(Debug, Clone, Serialize, Deserialize, PartialEq)]
+pub enum InstallationType {
+    /// Bundled sidecar binary (preferred)
+    Bundled,
+    /// System-installed binary
+    System,
+    /// Custom path specified by user
+    Custom,
+}
+
 /// Represents a Claude installation with metadata
 #[derive(Debug, Clone, Serialize, Deserialize)]
 pub struct ClaudeInstallation {
-    /// Full path to the Claude binary
+    /// Full path to the Claude binary (or "claude-code" for sidecar)
     pub path: String,
     /// Version string if available
     pub version: Option<String>,
-    /// Source of discovery (e.g., "nvm", "system", "homebrew", "which")
+    /// Source of discovery (e.g., "nvm", "system", "homebrew", "which", "bundled")
     pub source: String,
+    /// Type of installation
+    pub installation_type: InstallationType,
 }
 
 /// Main function to find the Claude binary
-/// Checks database first, then discovers all installations and selects the best one
+/// Checks database first for stored path and preference, then prioritizes accordingly
 pub fn find_claude_binary(app_handle: &tauri::AppHandle) -> Result<String, String> {
     info!("Searching for claude binary...");
 
-    // First check if we have a stored path in the database
+    // First check if we have a stored path and preference in the database
     if let Ok(app_data_dir) = app_handle.path().app_data_dir() {
         let db_path = app_data_dir.join("agents.db");
         if db_path.exists() {
             if let Ok(conn) = rusqlite::Connection::open(&db_path) {
+                // Check for stored path first
                 if let Ok(stored_path) = conn.query_row(
                     "SELECT value FROM app_settings WHERE key = 'claude_binary_path'",
                     [],
                     |row| row.get::<_, String>(0),
                 ) {
                     info!("Found stored claude path in database: {}", stored_path);
+                    
+                    // If it's a sidecar reference, return it directly
+                    if stored_path == "claude-code" {
+                        return Ok(stored_path);
+                    }
+                    
+                    // Otherwise check if the path still exists
                     let path_buf = PathBuf::from(&stored_path);
                     if path_buf.exists() && path_buf.is_file() {
                         return Ok(stored_path);
@@ -42,12 +63,33 @@ pub fn find_claude_binary(app_handle: &tauri::AppHandle) -> Result<String, Strin
                         warn!("Stored claude path no longer exists: {}", stored_path);
                     }
                 }
+                
+                // Check user preference
+                let preference = conn.query_row(
+                    "SELECT value FROM app_settings WHERE key = 'claude_installation_preference'",
+                    [],
+                    |row| row.get::<_, String>(0),
+                ).unwrap_or_else(|_| "bundled".to_string());
+                
+                info!("User preference for Claude installation: {}", preference);
+                
+                // If user prefers bundled and it's available, use it
+                if preference == "bundled" && is_sidecar_available(app_handle) {
+                    info!("Using bundled Claude Code sidecar per user preference");
+                    return Ok("claude-code".to_string());
+                }
             }
         }
     }
 
-    // Discover all available installations
-    let installations = discover_all_installations();
+    // Check for bundled sidecar (if no preference or bundled preferred)
+    if is_sidecar_available(app_handle) {
+        info!("Found bundled Claude Code sidecar");
+        return Ok("claude-code".to_string());
+    }
+
+    // Discover all available system installations
+    let installations = discover_system_installations();
 
     if installations.is_empty() {
         error!("Could not find claude binary in any location");
@@ -71,39 +113,77 @@ pub fn find_claude_binary(app_handle: &tauri::AppHandle) -> Result<String, Strin
     }
 }
 
+/// Check if the bundled sidecar is available
+fn is_sidecar_available(app_handle: &tauri::AppHandle) -> bool {
+    // Try to create a sidecar command to test availability
+    use tauri_plugin_shell::ShellExt;
+    
+    match app_handle.shell().sidecar("claude-code") {
+        Ok(_) => {
+            debug!("Bundled Claude Code sidecar is available");
+            true
+        }
+        Err(e) => {
+            debug!("Bundled Claude Code sidecar not available: {}", e);
+            false
+        }
+    }
+}
+
 /// Discovers all available Claude installations and returns them for selection
 /// This allows UI to show a version selector
 pub fn discover_claude_installations() -> Vec<ClaudeInstallation> {
     info!("Discovering all Claude installations...");
 
-    let installations = discover_all_installations();
+    let mut installations = Vec::new();
 
-    // Sort by version (highest first), then by source preference
-    let mut sorted = installations;
-    sorted.sort_by(|a, b| {
-        match (&a.version, &b.version) {
-            (Some(v1), Some(v2)) => {
-                // Compare versions in descending order (newest first)
-                match compare_versions(v2, v1) {
-                    Ordering::Equal => {
-                        // If versions are equal, prefer by source
-                        source_preference(a).cmp(&source_preference(b))
+    // Always add bundled sidecar as first option if available
+    // We can't easily check version for sidecar without spawning it, so we'll mark it as bundled
+    installations.push(ClaudeInstallation {
+        path: "claude-code".to_string(),
+        version: None, // Version will be determined at runtime
+        source: "bundled".to_string(),
+        installation_type: InstallationType::Bundled,
+    });
+
+    // Add system installations
+    installations.extend(discover_system_installations());
+
+    // Sort by installation type (Bundled first), then by version (highest first), then by source preference
+    installations.sort_by(|a, b| {
+        // First sort by installation type (Bundled comes first)
+        match (&a.installation_type, &b.installation_type) {
+            (InstallationType::Bundled, InstallationType::Bundled) => Ordering::Equal,
+            (InstallationType::Bundled, _) => Ordering::Less,
+            (_, InstallationType::Bundled) => Ordering::Greater,
+            _ => {
+                // For non-bundled installations, sort by version then source
+                match (&a.version, &b.version) {
+                    (Some(v1), Some(v2)) => {
+                        // Compare versions in descending order (newest first)
+                        match compare_versions(v2, v1) {
+                            Ordering::Equal => {
+                                // If versions are equal, prefer by source
+                                source_preference(a).cmp(&source_preference(b))
+                            }
+                            other => other,
+                        }
                     }
-                    other => other,
+                    (Some(_), None) => Ordering::Less, // Version comes before no version
+                    (None, Some(_)) => Ordering::Greater,
+                    (None, None) => source_preference(a).cmp(&source_preference(b)),
                 }
             }
-            (Some(_), None) => Ordering::Less, // Version comes before no version
-            (None, Some(_)) => Ordering::Greater,
-            (None, None) => source_preference(a).cmp(&source_preference(b)),
         }
     });
 
-    sorted
+    installations
 }
 
 /// Returns a preference score for installation sources (lower is better)
 fn source_preference(installation: &ClaudeInstallation) -> u8 {
     match installation.source.as_str() {
+        "bundled" => 0, // Bundled sidecar has highest preference
         "which" => 1,
         "homebrew" => 2,
         "system" => 3,
@@ -120,8 +200,8 @@ fn source_preference(installation: &ClaudeInstallation) -> u8 {
     }
 }
 
-/// Discovers all Claude installations on the system
-fn discover_all_installations() -> Vec<ClaudeInstallation> {
+/// Discovers all Claude system installations on the system (excludes bundled sidecar)
+fn discover_system_installations() -> Vec<ClaudeInstallation> {
     let mut installations = Vec::new();
 
     // 1. Try 'which' command first (now works in production)
@@ -179,6 +259,7 @@ fn try_which_command() -> Option<ClaudeInstallation> {
                 path,
                 version,
                 source: "which".to_string(),
+                installation_type: InstallationType::System,
             })
         }
         _ => None,
@@ -215,6 +296,7 @@ fn find_nvm_installations() -> Vec<ClaudeInstallation> {
                             path: path_str,
                             version,
                             source: format!("nvm ({})", node_version),
+                            installation_type: InstallationType::System,
                         });
                     }
                 }
@@ -283,6 +365,7 @@ fn find_standard_installations() -> Vec<ClaudeInstallation> {
                 path,
                 version,
                 source,
+                installation_type: InstallationType::System,
             });
         }
     }
@@ -297,6 +380,7 @@ fn find_standard_installations() -> Vec<ClaudeInstallation> {
                 path: "claude".to_string(),
                 version,
                 source: "PATH".to_string(),
+                installation_type: InstallationType::System,
             });
         }
     }
diff --git a/src-tauri/src/commands/agents.rs b/src-tauri/src/commands/agents.rs
index 39e9b93..32925d5 100644
--- a/src-tauri/src/commands/agents.rs
+++ b/src-tauri/src/commands/agents.rs
@@ -1392,7 +1392,20 @@ pub async fn get_claude_binary_path(db: State<'_, AgentDb>) -> Result<Option<Str
 pub async fn set_claude_binary_path(db: State<'_, AgentDb>, path: String) -> Result<(), String> {
     let conn = db.0.lock().map_err(|e| e.to_string())?;
 
-    // Validate that the path exists and is executable
+    // Special handling for bundled sidecar reference
+    if path == "claude-code" {
+        // For bundled sidecar, we don't need to validate file existence
+        // as it's handled by Tauri's sidecar system
+        conn.execute(
+            "INSERT INTO app_settings (key, value) VALUES ('claude_binary_path', ?1)
+             ON CONFLICT(key) DO UPDATE SET value = ?1",
+            params![path],
+        )
+        .map_err(|e| format!("Failed to save Claude binary path: {}", e))?;
+        return Ok(());
+    }
+
+    // Validate that the path exists and is executable for system installations
     let path_buf = std::path::PathBuf::from(&path);
     if !path_buf.exists() {
         return Err(format!("File does not exist: {}", path));
@@ -1489,6 +1502,26 @@ fn create_command_with_env(program: &str) -> Command {
         tokio_cmd.env("PATH", "/opt/homebrew/bin:/usr/local/bin:/usr/bin:/bin");
     }
 
+    // BEGIN PATCH: Ensure bundled sidecar directory is in PATH when using the "claude-code" placeholder
+    if program == "claude-code" {
+        // Attempt to locate the sidecar binaries directory that Tauri uses during development
+        // At compile-time, CARGO_MANIFEST_DIR resolves to the absolute path of the src-tauri crate.
+        // The sidecar binaries live in <src-tauri>/binaries.
+        #[allow(clippy::redundant_clone)]
+        let sidecar_dir = std::path::PathBuf::from(env!("CARGO_MANIFEST_DIR")).join("binaries");
+        if sidecar_dir.exists() {
+            if let Some(sidecar_dir_str) = sidecar_dir.to_str() {
+                let current_path = std::env::var("PATH").unwrap_or_default();
+                let separator = if cfg!(target_os = "windows") { ";" } else { ":" };
+                if !current_path.split(separator).any(|p| p == sidecar_dir_str) {
+                    let new_path = format!("{}{}{}", sidecar_dir_str, separator, current_path);
+                    tokio_cmd.env("PATH", new_path);
+                }
+            }
+        }
+    }
+    // END PATCH
+
     tokio_cmd
 }
 
diff --git a/src-tauri/src/commands/claude.rs b/src-tauri/src/commands/claude.rs
index 74f2a20..ce50ce4 100644
--- a/src-tauri/src/commands/claude.rs
+++ b/src-tauri/src/commands/claude.rs
@@ -9,6 +9,8 @@ use std::time::SystemTime;
 use tauri::{AppHandle, Emitter, Manager};
 use tokio::process::{Child, Command};
 use tokio::sync::Mutex;
+use tauri_plugin_shell::ShellExt;
+use tauri_plugin_shell::process::CommandEvent;
 
 /// Global state to track current Claude process
 pub struct ClaudeProcessState {
@@ -263,6 +265,51 @@ fn create_command_with_env(program: &str) -> Command {
     tokio_cmd
 }
 
+/// Determines whether to use sidecar or system binary execution
+fn should_use_sidecar(claude_path: &str) -> bool {
+    claude_path == "claude-code"
+}
+
+/// Creates a sidecar command with the given arguments
+fn create_sidecar_command(
+    app: &AppHandle,
+    args: Vec<String>,
+    project_path: &str,
+) -> Result<tauri_plugin_shell::process::Command, String> {
+    let mut sidecar_cmd = app
+        .shell()
+        .sidecar("claude-code")
+        .map_err(|e| format!("Failed to create sidecar command: {}", e))?;
+    
+    // Add all arguments
+    sidecar_cmd = sidecar_cmd.args(args);
+    
+    // Set working directory
+    sidecar_cmd = sidecar_cmd.current_dir(project_path);
+    
+    Ok(sidecar_cmd)
+}
+
+/// Creates a system binary command with the given arguments
+fn create_system_command(
+    claude_path: &str,
+    args: Vec<String>,
+    project_path: &str,
+) -> Command {
+    let mut cmd = create_command_with_env(claude_path);
+    
+    // Add all arguments
+    for arg in args {
+        cmd.arg(arg);
+    }
+    
+    cmd.current_dir(project_path)
+        .stdout(Stdio::piped())
+        .stderr(Stdio::piped());
+    
+    cmd
+}
+
 /// Lists all projects in the ~/.claude/projects directory
 #[tauri::command]
 pub async fn list_projects() -> Result<Vec<Project>, String> {
@@ -530,6 +577,21 @@ pub async fn check_claude_version(app: AppHandle) -> Result<ClaudeVersionStatus,
         }
     };
 
+    // If the selected path is the special sidecar identifier, we cannot execute it directly.
+    // Instead, assume the bundled sidecar is available (find_claude_binary already verified
+    // this) and return a positive status without a version string. Attempting to spawn the
+    // sidecar here would require async streaming plumbing that is over-kill for a simple
+    // presence check and fails in debug builds (os error 2).
+    if claude_path == "claude-code" {
+        return Ok(ClaudeVersionStatus {
+            is_installed: true,
+            version: None,
+            output: "Using bundled Claude Code sidecar".to_string(),
+        });
+    }
+
+    use log::debug;debug!("Claude path: {}", claude_path);
+
     // In production builds, we can't check the version directly
     #[cfg(not(debug_assertions))]
     {
@@ -660,15 +722,15 @@ fn find_claude_md_recursive(
         let entry = entry.map_err(|e| format!("Failed to read directory entry: {}", e))?;
         let path = entry.path();
 
-        // Skip hidden directories and files
+        // Skip hidden files/directories
         if let Some(name) = path.file_name().and_then(|n| n.to_str()) {
-            if name.starts_with('.') && name != ".claude" {
+            if name.starts_with('.') {
                 continue;
             }
         }
 
         if path.is_dir() {
-            // Skip common directories that shouldn't be scanned
+            // Skip common directories that shouldn't be searched
             if let Some(dir_name) = path.file_name().and_then(|n| n.to_str()) {
                 if matches!(
                     dir_name,
@@ -678,7 +740,6 @@ fn find_claude_md_recursive(
                 }
             }
 
-            // Recurse into subdirectory
             find_claude_md_recursive(&path, project_root, claude_files)?;
         } else if path.is_file() {
             // Check if it's a CLAUDE.md file (case insensitive)
@@ -799,21 +860,24 @@ pub async fn execute_claude_code(
     );
 
     let claude_path = find_claude_binary(&app)?;
-    let mut cmd = create_command_with_env(&claude_path);
+    
+    let args = vec![
+        "-p".to_string(),
+        prompt.clone(),
+        "--model".to_string(),
+        model.clone(),
+        "--output-format".to_string(),
+        "stream-json".to_string(),
+        "--verbose".to_string(),
+        "--dangerously-skip-permissions".to_string(),
+    ];
 
-    cmd.arg("-p")
-        .arg(&prompt)
-        .arg("--model")
-        .arg(&model)
-        .arg("--output-format")
-        .arg("stream-json")
-        .arg("--verbose")
-        .arg("--dangerously-skip-permissions")
-        .current_dir(&project_path)
-        .stdout(Stdio::piped())
-        .stderr(Stdio::piped());
-
-    spawn_claude_process(app, cmd, prompt, model, project_path).await
+    if should_use_sidecar(&claude_path) {
+        spawn_claude_sidecar(app, args, prompt, model, project_path).await
+    } else {
+        let cmd = create_system_command(&claude_path, args, &project_path);
+        spawn_claude_process(app, cmd, prompt, model, project_path).await
+    }
 }
 
 /// Continue an existing Claude Code conversation with streaming output
@@ -831,22 +895,25 @@ pub async fn continue_claude_code(
     );
 
     let claude_path = find_claude_binary(&app)?;
-    let mut cmd = create_command_with_env(&claude_path);
+    
+    let args = vec![
+        "-c".to_string(), // Continue flag
+        "-p".to_string(),
+        prompt.clone(),
+        "--model".to_string(),
+        model.clone(),
+        "--output-format".to_string(),
+        "stream-json".to_string(),
+        "--verbose".to_string(),
+        "--dangerously-skip-permissions".to_string(),
+    ];
 
-    cmd.arg("-c") // Continue flag
-        .arg("-p")
-        .arg(&prompt)
-        .arg("--model")
-        .arg(&model)
-        .arg("--output-format")
-        .arg("stream-json")
-        .arg("--verbose")
-        .arg("--dangerously-skip-permissions")
-        .current_dir(&project_path)
-        .stdout(Stdio::piped())
-        .stderr(Stdio::piped());
-
-    spawn_claude_process(app, cmd, prompt, model, project_path).await
+    if should_use_sidecar(&claude_path) {
+        spawn_claude_sidecar(app, args, prompt, model, project_path).await
+    } else {
+        let cmd = create_system_command(&claude_path, args, &project_path);
+        spawn_claude_process(app, cmd, prompt, model, project_path).await
+    }
 }
 
 /// Resume an existing Claude Code session by ID with streaming output
@@ -866,23 +933,26 @@ pub async fn resume_claude_code(
     );
 
     let claude_path = find_claude_binary(&app)?;
-    let mut cmd = create_command_with_env(&claude_path);
+    
+    let args = vec![
+        "--resume".to_string(),
+        session_id.clone(),
+        "-p".to_string(),
+        prompt.clone(),
+        "--model".to_string(),
+        model.clone(),
+        "--output-format".to_string(),
+        "stream-json".to_string(),
+        "--verbose".to_string(),
+        "--dangerously-skip-permissions".to_string(),
+    ];
 
-    cmd.arg("--resume")
-        .arg(&session_id)
-        .arg("-p")
-        .arg(&prompt)
-        .arg("--model")
-        .arg(&model)
-        .arg("--output-format")
-        .arg("stream-json")
-        .arg("--verbose")
-        .arg("--dangerously-skip-permissions")
-        .current_dir(&project_path)
-        .stdout(Stdio::piped())
-        .stderr(Stdio::piped());
-
-    spawn_claude_process(app, cmd, prompt, model, project_path).await
+    if should_use_sidecar(&claude_path) {
+        spawn_claude_sidecar(app, args, prompt, model, project_path).await
+    } else {
+        let cmd = create_system_command(&claude_path, args, &project_path);
+        spawn_claude_process(app, cmd, prompt, model, project_path).await
+    }
 }
 
 /// Cancel the currently running Claude Code execution
@@ -1031,9 +1101,6 @@ pub async fn get_claude_session_output(
     }
 }
 
-
-
-
 /// Helper function to spawn Claude process and handle streaming
 async fn spawn_claude_process(app: AppHandle, mut cmd: Command, prompt: String, model: String, project_path: String) -> Result<(), String> {
     use tokio::io::{AsyncBufReadExt, BufReader};
@@ -1202,6 +1269,145 @@ async fn spawn_claude_process(app: AppHandle, mut cmd: Command, prompt: String,
     Ok(())
 }
 
+/// Helper function to spawn Claude sidecar process and handle streaming
+async fn spawn_claude_sidecar(
+    app: AppHandle,
+    args: Vec<String>,
+    prompt: String,
+    model: String,
+    project_path: String,
+) -> Result<(), String> {
+    use std::sync::Mutex;
+
+    // Create the sidecar command
+    let sidecar_cmd = create_sidecar_command(&app, args, &project_path)?;
+    
+    // Spawn the sidecar process
+    let (mut rx, child) = sidecar_cmd
+        .spawn()
+        .map_err(|e| format!("Failed to spawn Claude sidecar: {}", e))?;
+
+    // Get the child PID for logging
+    let pid = child.pid();
+    log::info!("Spawned Claude sidecar process with PID: {:?}", pid);
+
+    // We'll extract the session ID from Claude's init message
+    let session_id_holder: Arc<Mutex<Option<String>>> = Arc::new(Mutex::new(None));
+    let run_id_holder: Arc<Mutex<Option<i64>>> = Arc::new(Mutex::new(None));
+
+    // Register with ProcessRegistry
+    let registry = app.state::<crate::process::ProcessRegistryState>();
+    let registry_clone = registry.0.clone();
+    let project_path_clone = project_path.clone();
+    let prompt_clone = prompt.clone();
+    let model_clone = model.clone();
+
+    // Spawn task to read events from sidecar
+    let app_handle = app.clone();
+    let session_id_holder_clone = session_id_holder.clone();
+    let run_id_holder_clone = run_id_holder.clone();
+    
+    tauri::async_runtime::spawn(async move {
+        while let Some(event) = rx.recv().await {
+            match event {
+                CommandEvent::Stdout(line_bytes) => {
+                    let line = String::from_utf8_lossy(&line_bytes);
+                    let line_str = line.trim_end_matches('\n').trim_end_matches('\r');
+                    
+                    if !line_str.is_empty() {
+                        log::debug!("Claude sidecar stdout: {}", line_str);
+                        
+                        // Parse the line to check for init message with session ID
+                        if let Ok(msg) = serde_json::from_str::<serde_json::Value>(line_str) {
+                            if msg["type"] == "system" && msg["subtype"] == "init" {
+                                if let Some(claude_session_id) = msg["session_id"].as_str() {
+                                    let mut session_id_guard = session_id_holder_clone.lock().unwrap();
+                                    if session_id_guard.is_none() {
+                                        *session_id_guard = Some(claude_session_id.to_string());
+                                        log::info!("Extracted Claude session ID: {}", claude_session_id);
+                                        
+                                        // Register with ProcessRegistry using Claude's session ID
+                                        match registry_clone.register_claude_session(
+                                            claude_session_id.to_string(),
+                                            pid,
+                                            project_path_clone.clone(),
+                                            prompt_clone.clone(),
+                                            model_clone.clone(),
+                                        ) {
+                                            Ok(run_id) => {
+                                                log::info!("Registered Claude sidecar session with run_id: {}", run_id);
+                                                let mut run_id_guard = run_id_holder_clone.lock().unwrap();
+                                                *run_id_guard = Some(run_id);
+                                            }
+                                            Err(e) => {
+                                                log::error!("Failed to register Claude sidecar session: {}", e);
+                                            }
+                                        }
+                                    }
+                                }
+                            }
+                        }
+                        
+                        // Store live output in registry if we have a run_id
+                        if let Some(run_id) = *run_id_holder_clone.lock().unwrap() {
+                            let _ = registry_clone.append_live_output(run_id, line_str);
+                        }
+                        
+                        // Emit the line to the frontend with session isolation if we have session ID
+                        if let Some(ref session_id) = *session_id_holder_clone.lock().unwrap() {
+                            let _ = app_handle.emit(&format!("claude-output:{}", session_id), line_str);
+                        }
+                        // Also emit to the generic event for backward compatibility
+                        let _ = app_handle.emit("claude-output", line_str);
+                    }
+                }
+                CommandEvent::Stderr(line_bytes) => {
+                    let line = String::from_utf8_lossy(&line_bytes);
+                    let line_str = line.trim_end_matches('\n').trim_end_matches('\r');
+                    
+                    if !line_str.is_empty() {
+                        log::error!("Claude sidecar stderr: {}", line_str);
+                        
+                        // Emit error lines to the frontend with session isolation if we have session ID
+                        if let Some(ref session_id) = *session_id_holder_clone.lock().unwrap() {
+                            let _ = app_handle.emit(&format!("claude-error:{}", session_id), line_str);
+                        }
+                        // Also emit to the generic event for backward compatibility
+                        let _ = app_handle.emit("claude-error", line_str);
+                    }
+                }
+                CommandEvent::Terminated(payload) => {
+                    log::info!("Claude sidecar process terminated with payload: {:?}", payload);
+                    
+                    // Add a small delay to ensure all messages are processed
+                    tokio::time::sleep(tokio::time::Duration::from_millis(100)).await;
+                    
+                    let success = payload.code.unwrap_or(-1) == 0;
+                    
+                    if let Some(ref session_id) = *session_id_holder_clone.lock().unwrap() {
+                        let _ = app_handle.emit(&format!("claude-complete:{}", session_id), success);
+                    }
+                    // Also emit to the generic event for backward compatibility
+                    let _ = app_handle.emit("claude-complete", success);
+                    
+                    // Unregister from ProcessRegistry if we have a run_id
+                    if let Some(run_id) = *run_id_holder_clone.lock().unwrap() {
+                        let _ = registry_clone.unregister_process(run_id);
+                    }
+                    
+                    break;
+                }
+                _ => {
+                    // Handle other event types if needed
+                    log::debug!("Claude sidecar event: {:?}", event);
+                }
+            }
+        }
+    });
+
+    Ok(())
+}
+
 /// Lists files and directories in a given path
 #[tauri::command]
 pub async fn list_directory_contents(directory_path: String) -> Result<Vec<FileEntry>, String> {
@@ -1905,4 +2111,3 @@ pub async fn track_session_messages(
     }
     Ok(())
 }
-
diff --git a/src-tauri/src/main.rs b/src-tauri/src/main.rs
index 5b330e3..24a44b5 100644
--- a/src-tauri/src/main.rs
+++ b/src-tauri/src/main.rs
@@ -48,6 +48,7 @@ fn main() {
 
     tauri::Builder::default()
         .plugin(tauri_plugin_dialog::init())
+        .plugin(tauri_plugin_shell::init())
         .setup(|app| {
             // Initialize agents database
             let conn = init_database(&app.handle()).expect("Failed to initialize agents database");
@@ -160,7 +161,8 @@ fn main() {
             mcp_reset_project_choices,
             mcp_get_server_status,
             mcp_read_project_config,
-            mcp_save_project_config
+            mcp_save_project_config,
+
         ])
         .run(tauri::generate_context!())
         .expect("error while running tauri application");
diff --git a/src-tauri/tauri.conf.json b/src-tauri/tauri.conf.json
index 411ba77..860c55c 100644
--- a/src-tauri/tauri.conf.json
+++ b/src-tauri/tauri.conf.json
@@ -18,17 +18,34 @@
       }
     ],
     "security": {
-      "csp": "default-src 'self'; img-src 'self' asset: https://asset.localhost blob: data:; style-src 'self' 'unsafe-inline'; script-src 'self' 'unsafe-eval'",
+      "csp": "default-src 'self'; img-src 'self' asset: https://asset.localhost blob: data:; style-src 'self' 'unsafe-inline'; script-src 'self' 'unsafe-eval'; connect-src 'self' ipc: https://ipc.localhost",
       "assetProtocol": {
         "enable": true,
-        "scope": ["**"]
+        "scope": [
+          "**"
+        ]
       }
     }
   },
   "plugins": {
     "fs": {
-      "scope": ["$HOME/**"],
-      "allow": ["readFile", "writeFile", "readDir", "copyFile", "createDir", "removeDir", "removeFile", "renameFile", "exists"]
+      "scope": [
+        "$HOME/**"
+      ],
+      "allow": [
+        "readFile",
+        "writeFile",
+        "readDir",
+        "copyFile",
+        "createDir",
+        "removeDir",
+        "removeFile",
+        "renameFile",
+        "exists"
+      ]
+    },
+    "shell": {
+      "open": true
     }
   },
   "bundle": {
@@ -40,6 +57,9 @@
       "icons/128x128@2x.png",
       "icons/icon.icns",
       "icons/icon.png"
+    ],
+    "externalBin": [
+      "binaries/claude-code"
     ]
   }
 }
diff --git a/src/components/ClaudeVersionSelector.tsx b/src/components/ClaudeVersionSelector.tsx
index 1cc17d1..de8c360 100644
--- a/src/components/ClaudeVersionSelector.tsx
+++ b/src/components/ClaudeVersionSelector.tsx
@@ -1,20 +1,20 @@
-import React, { useEffect, useState } from "react";
-import { api, type ClaudeInstallation } from "@/lib/api";
-import { Label } from "@/components/ui/label";
+import React, { useState, useEffect } from "react";
 import { Button } from "@/components/ui/button";
-import { Card } from "@/components/ui/card";
+import { Select, SelectContent, SelectItem, SelectTrigger, SelectValue } from "@/components/ui/select";
 import { Badge } from "@/components/ui/badge";
-import { RadioGroup, RadioGroupItem } from "@/components/ui/radio-group";
-import { Loader2, Terminal, Package, Check } from "lucide-react";
+import { Card, CardContent, CardDescription, CardHeader, CardTitle } from "@/components/ui/card";
+import { Label } from "@/components/ui/label";
+import { api, type ClaudeInstallation } from "@/lib/api";
 import { cn } from "@/lib/utils";
+import { CheckCircle, Package, HardDrive, Settings } from "lucide-react";
 
 interface ClaudeVersionSelectorProps {
   /**
-   * Currently selected Claude installation path
+   * Currently selected installation path
    */
   selectedPath?: string | null;
   /**
-   * Callback when a Claude installation is selected
+   * Callback when an installation is selected
    */
   onSelect: (installation: ClaudeInstallation) => void;
   /**
@@ -22,21 +22,22 @@ interface ClaudeVersionSelectorProps {
    */
   className?: string;
   /**
-   * Whether to show a save button (for settings page)
+   * Whether to show the save button
    */
   showSaveButton?: boolean;
   /**
-   * Callback when save button is clicked
+   * Callback when save is clicked
    */
   onSave?: () => void;
   /**
-   * Whether the save operation is in progress
+   * Whether save is in progress
    */
   isSaving?: boolean;
 }
 
 /**
  * ClaudeVersionSelector component for selecting Claude Code installations
+ * Supports bundled sidecar, system installations, and user preferences
  * 
  * @example
  * <ClaudeVersionSelector
@@ -97,135 +98,206 @@ export const ClaudeVersionSelector: React.FC<ClaudeVersionSelectorProps> = ({
     }
   };
 
-  const handleSelect = (installation: ClaudeInstallation) => {
-    setSelectedInstallation(installation);
-    onSelect(installation);
+  const handleInstallationChange = (installationPath: string) => {
+    const installation = installations.find(i => i.path === installationPath);
+    if (installation) {
+      setSelectedInstallation(installation);
+      onSelect(installation);
+    }
   };
 
-  const getSourceIcon = (source: string) => {
-    if (source.includes("nvm")) return <Package className="w-4 h-4" />;
-    return <Terminal className="w-4 h-4" />;
+  const getInstallationIcon = (installation: ClaudeInstallation) => {
+    switch (installation.installation_type) {
+      case "Bundled":
+        return <Package className="h-4 w-4" />;
+      case "System":
+        return <HardDrive className="h-4 w-4" />;
+      case "Custom":
+        return <Settings className="h-4 w-4" />;
+      default:
+        return <HardDrive className="h-4 w-4" />;
+    }
   };
 
-  const getSourceLabel = (source: string) => {
-    if (source === "which") return "System PATH";
-    if (source === "homebrew") return "Homebrew";
-    if (source === "system") return "System";
-    if (source.startsWith("nvm")) return source.replace("nvm ", "NVM ");
-    if (source === "local-bin") return "Local bin";
-    if (source === "claude-local") return "Claude local";
-    if (source === "npm-global") return "NPM global";
-    if (source === "yarn" || source === "yarn-global") return "Yarn";
-    if (source === "bun") return "Bun";
-    return source;
+  const getInstallationTypeColor = (installation: ClaudeInstallation) => {
+    switch (installation.installation_type) {
+      case "Bundled":
+        return "bg-green-100 text-green-800 dark:bg-green-900 dark:text-green-300";
+      case "System":
+        return "bg-blue-100 text-blue-800 dark:bg-blue-900 dark:text-blue-300";
+      case "Custom":
+        return "bg-purple-100 text-purple-800 dark:bg-purple-900 dark:text-purple-300";
+      default:
+        return "bg-gray-100 text-gray-800 dark:bg-gray-900 dark:text-gray-300";
+    }
   };
 
   if (loading) {
     return (
-      <div className={cn("flex items-center justify-center py-8", className)}>
-        <Loader2 className="w-6 h-6 animate-spin text-muted-foreground" />
-      </div>
+      <Card className={className}>
+        <CardHeader>
+          <CardTitle>Claude Code Installation</CardTitle>
+          <CardDescription>Loading available installations...</CardDescription>
+        </CardHeader>
+        <CardContent>
+          <div className="flex items-center justify-center py-4">
+            <div className="animate-spin rounded-full h-6 w-6 border-b-2 border-primary"></div>
+          </div>
+        </CardContent>
+      </Card>
     );
   }
 
   if (error) {
     return (
-      <Card className={cn("p-4", className)}>
-        <div className="text-sm text-destructive">{error}</div>
+      <Card className={className}>
+        <CardHeader>
+          <CardTitle>Claude Code Installation</CardTitle>
+          <CardDescription>Error loading installations</CardDescription>
+        </CardHeader>
+        <CardContent>
+          <div className="text-sm text-destructive mb-4">{error}</div>
+          <Button onClick={loadInstallations} variant="outline" size="sm">
+            Retry
+          </Button>
+        </CardContent>
       </Card>
     );
   }
 
-  if (installations.length === 0) {
-    return (
-      <Card className={cn("p-4", className)}>
-        <div className="text-sm text-muted-foreground">
-          No Claude Code installations found on your system.
-        </div>
-      </Card>
-    );
-  }
+  const bundledInstallations = installations.filter(i => i.installation_type === "Bundled");
+  const systemInstallations = installations.filter(i => i.installation_type === "System");
+  const customInstallations = installations.filter(i => i.installation_type === "Custom");
 
   return (
-    <div className={cn("space-y-4", className)}>
-      <div>
-        <Label className="text-sm font-medium mb-3 block">
-          Select Claude Code Installation
-        </Label>
-        <RadioGroup
-          value={selectedInstallation?.path}
-          onValueChange={(value: string) => {
-            const installation = installations.find(i => i.path === value);
-            if (installation) {
-              handleSelect(installation);
-            }
-          }}
-        >
-          <div className="space-y-2">
-            {installations.map((installation) => (
-              <Card
-                key={installation.path}
-                className={cn(
-                  "relative cursor-pointer transition-colors",
-                  selectedInstallation?.path === installation.path
-                    ? "border-primary"
-                    : "hover:border-muted-foreground/50"
-                )}
-                onClick={() => handleSelect(installation)}
-              >
-                <div className="flex items-start p-4">
-                  <RadioGroupItem
-                    value={installation.path}
-                    id={installation.path}
-                    className="mt-1"
-                  />
-                  <div className="ml-3 flex-1">
-                    <div className="flex items-center gap-2 mb-1">
-                      {getSourceIcon(installation.source)}
-                      <span className="font-medium text-sm">
-                        {getSourceLabel(installation.source)}
-                      </span>
-                      {installation.version && (
-                        <Badge variant="secondary" className="text-xs">
-                          v{installation.version}
-                        </Badge>
-                      )}
-                      {selectedPath === installation.path && (
-                        <Badge variant="default" className="text-xs">
-                          <Check className="w-3 h-3 mr-1" />
-                          Current
-                        </Badge>
-                      )}
-                    </div>
-                    <p className="text-xs text-muted-foreground font-mono break-all">
-                      {installation.path}
-                    </p>
+    <Card className={className}>
+      <CardHeader>
+        <CardTitle className="flex items-center gap-2">
+          <CheckCircle className="h-5 w-5" />
+          Claude Code Installation
+        </CardTitle>
+        <CardDescription>
+          Choose your preferred Claude Code installation. Bundled version is recommended for best compatibility.
+        </CardDescription>
+      </CardHeader>
+      <CardContent className="space-y-6">
+        {/* Available Installations */}
+        <div className="space-y-3">
+          <Label className="text-sm font-medium">Available Installations</Label>
+          <Select value={selectedInstallation?.path || ""} onValueChange={handleInstallationChange}>
+            <SelectTrigger>
+              <SelectValue placeholder="Select Claude installation">
+                {selectedInstallation && (
+                  <div className="flex items-center gap-2">
+                    {getInstallationIcon(selectedInstallation)}
+                    <span className="truncate">{selectedInstallation.path}</span>
+                    <Badge variant="secondary" className={cn("text-xs", getInstallationTypeColor(selectedInstallation))}>
+                      {selectedInstallation.installation_type}
+                    </Badge>
                   </div>
-                </div>
-              </Card>
-            ))}
-          </div>
-        </RadioGroup>
-      </div>
+                )}
+              </SelectValue>
+            </SelectTrigger>
+            <SelectContent>
+              {bundledInstallations.length > 0 && (
+                <>
+                  <div className="px-2 py-1.5 text-xs font-semibold text-muted-foreground">Bundled</div>
+                  {bundledInstallations.map((installation) => (
+                    <SelectItem key={installation.path} value={installation.path}>
+                      <div className="flex items-center gap-2 w-full">
+                        {getInstallationIcon(installation)}
+                        <div className="flex-1 min-w-0">
+                          <div className="font-medium">Claude Code (Bundled)</div>
+                          <div className="text-xs text-muted-foreground">
+                            {installation.version || "Version unknown"} • {installation.source}
+                          </div>
+                        </div>
+                        <Badge variant="secondary" className={cn("text-xs", getInstallationTypeColor(installation))}>
+                          Recommended
+                        </Badge>
+                      </div>
+                    </SelectItem>
+                  ))}
+                </>
+              )}
+              
+              {systemInstallations.length > 0 && (
+                <>
+                  <div className="px-2 py-1.5 text-xs font-semibold text-muted-foreground">System Installations</div>
+                  {systemInstallations.map((installation) => (
+                    <SelectItem key={installation.path} value={installation.path}>
+                      <div className="flex items-center gap-2 w-full">
+                        {getInstallationIcon(installation)}
+                        <div className="flex-1 min-w-0">
+                          <div className="font-medium truncate">{installation.path}</div>
+                          <div className="text-xs text-muted-foreground">
+                            {installation.version || "Version unknown"} • {installation.source}
+                          </div>
+                        </div>
+                        <Badge variant="outline" className="text-xs">
+                          System
+                        </Badge>
+                      </div>
+                    </SelectItem>
+                  ))}
+                </>
+              )}
 
-      {showSaveButton && onSave && (
-        <div className="flex justify-end">
-          <Button
-            onClick={onSave}
-            disabled={!selectedInstallation || isSaving}
-            size="sm"
-          >
-            {isSaving ? (
-              <>
-                <Loader2 className="w-4 h-4 mr-2 animate-spin" />
-                Saving...
-              </>
-            ) : (
-              "Save Selection"
-            )}
-          </Button>
+              {customInstallations.length > 0 && (
+                <>
+                  <div className="px-2 py-1.5 text-xs font-semibold text-muted-foreground">Custom Installations</div>
+                  {customInstallations.map((installation) => (
+                    <SelectItem key={installation.path} value={installation.path}>
+                      <div className="flex items-center gap-2 w-full">
+                        {getInstallationIcon(installation)}
+                        <div className="flex-1 min-w-0">
+                          <div className="font-medium truncate">{installation.path}</div>
+                          <div className="text-xs text-muted-foreground">
+                            {installation.version || "Version unknown"} • {installation.source}
+                          </div>
+                        </div>
+                        <Badge variant="outline" className="text-xs">
+                          Custom
+                        </Badge>
+                      </div>
+                    </SelectItem>
+                  ))}
+                </>
+              )}
+            </SelectContent>
+          </Select>
         </div>
-      )}
-    </div>
+
+        {/* Installation Details */}
+        {selectedInstallation && (
+          <div className="p-3 bg-muted rounded-lg space-y-2">
+            <div className="flex items-center justify-between">
+              <span className="text-sm font-medium">Selected Installation</span>
+              <Badge className={cn("text-xs", getInstallationTypeColor(selectedInstallation))}>
+                {selectedInstallation.installation_type}
+              </Badge>
+            </div>
+            <div className="text-sm text-muted-foreground">
+              <div><strong>Path:</strong> {selectedInstallation.path}</div>
+              <div><strong>Source:</strong> {selectedInstallation.source}</div>
+              {selectedInstallation.version && (
+                <div><strong>Version:</strong> {selectedInstallation.version}</div>
+              )}
+            </div>
+          </div>
+        )}
+
+        {/* Save Button */}
+        {showSaveButton && (
+          <Button 
+            onClick={onSave} 
+            disabled={isSaving || !selectedInstallation}
+            className="w-full"
+          >
+            {isSaving ? "Saving..." : "Save Selection"}
+          </Button>
+        )}
+      </CardContent>
+    </Card>
   );
-}; 
\ No newline at end of file
+}; 
diff --git a/src/components/Settings.tsx b/src/components/Settings.tsx
index b130243..bb1c8c3 100644
--- a/src/components/Settings.tsx
+++ b/src/components/Settings.tsx
@@ -432,7 +432,7 @@ export const Settings: React.FC<SettingsProps> = ({
                       <div>
                         <Label className="text-sm font-medium mb-2 block">Claude Code Installation</Label>
                         <p className="text-xs text-muted-foreground mb-4">
-                          Select which Claude Code installation to use
+                          Select which Claude Code installation to use. Bundled version is recommended for best compatibility.
                         </p>
                       </div>
                       <ClaudeVersionSelector
diff --git a/src/lib/api.ts b/src/lib/api.ts
index a74256b..1d6f2d6 100644
--- a/src/lib/api.ts
+++ b/src/lib/api.ts
@@ -98,12 +98,14 @@ export interface FileEntry {
  * Represents a Claude installation found on the system
  */
 export interface ClaudeInstallation {
-  /** Full path to the Claude binary */
+  /** Full path to the Claude binary (or "claude-code" for sidecar) */
   path: string;
   /** Version string if available */
   version?: string;
-  /** Source of discovery (e.g., "nvm", "system", "homebrew", "which") */
+  /** Source of discovery (e.g., "nvm", "system", "homebrew", "which", "bundled") */
   source: string;
+  /** Type of installation */
+  installation_type: "Bundled" | "System" | "Custom";
 }
 
 // Agent API types
@@ -1481,8 +1483,6 @@ export const api = {
     }
   },
 
-
-
   /**
    * List all available Claude installations on the system
    * @returns Promise resolving to an array of Claude installations
@@ -1495,4 +1495,6 @@ export const api = {
       throw error;
     }
   },
+
+
 };