diff --git a/README.md b/README.md
index bcf6136e..bb3f177c 100644
--- a/README.md
+++ b/README.md
@@ -7,7 +7,7 @@
 
 <p align="center">
   Open-source Agent OS built in Rust. 137K LOC. 14 crates. 1,767+ tests. Zero clippy warnings.<br/>
-  <strong>One binary. Production-grade. Agents that actually work for you.</strong>
+  <strong>One binary. Battle-tested. Agents that actually work for you.</strong>
 </p>
 
 <p align="center">
@@ -34,7 +34,7 @@
 
 ## What is OpenFang?
 
-OpenFang is a **production-grade Agent Operating System** — not a chatbot framework, not a Python wrapper around an LLM, not a "multi-agent orchestrator." It is a full operating system for autonomous agents, built from scratch in Rust.
+OpenFang is an **open-source Agent Operating System** — not a chatbot framework, not a Python wrapper around an LLM, not a "multi-agent orchestrator." It is a full operating system for autonomous agents, built from scratch in Rust.
 
 Traditional agent frameworks wait for you to type something. OpenFang runs **autonomous agents that work for you** — on schedules, 24/7, building knowledge graphs, monitoring targets, generating leads, managing your social media, and reporting results to your dashboard.
 
@@ -370,7 +370,7 @@ cargo fmt --all -- --check
 
 ## Stability Notice
 
-OpenFang v0.1.0 is the first public release. The architecture is solid, the test suite is comprehensive, and the security model is production-grade. That said:
+OpenFang v0.1.0 is the first public release. The architecture is solid, the test suite is comprehensive, and the security model is comprehensive. That said:
 
 - **Breaking changes** may occur between minor versions until v1.0
 - **Some Hands** are more mature than others (Browser and Researcher are the most battle-tested)
diff --git a/crates/openfang-api/src/routes.rs b/crates/openfang-api/src/routes.rs
index 7b00fe92..832f0319 100644
--- a/crates/openfang-api/src/routes.rs
+++ b/crates/openfang-api/src/routes.rs
@@ -31,6 +31,8 @@ pub struct AppState {
     pub bridge_manager: tokio::sync::Mutex<Option<openfang_channels::bridge::BridgeManager>>,
     /// Live channel config — updated on every hot-reload so list_channels() reflects reality.
     pub channels_config: tokio::sync::RwLock<openfang_types::config::ChannelsConfig>,
+    /// Notify handle to trigger graceful HTTP server shutdown from the API.
+    pub shutdown_notify: Arc<tokio::sync::Notify>,
 }
 
 /// POST /api/agents — Spawn a new agent.
@@ -492,6 +494,8 @@ pub async fn shutdown(State(state): State<Arc<AppState>>) -> impl IntoResponse {
         "ok",
     );
     state.kernel.shutdown();
+    // Signal the HTTP server to initiate graceful shutdown so the process exits.
+    state.shutdown_notify.notify_one();
     Json(serde_json::json!({"status": "shutting_down"}))
 }
 
diff --git a/crates/openfang-api/src/server.rs b/crates/openfang-api/src/server.rs
index a1f36344..0e289352 100644
--- a/crates/openfang-api/src/server.rs
+++ b/crates/openfang-api/src/server.rs
@@ -48,6 +48,7 @@ pub async fn build_router(
         peer_registry: kernel.peer_registry.as_ref().map(|r| Arc::new(r.clone())),
         bridge_manager: tokio::sync::Mutex::new(bridge),
         channels_config: tokio::sync::RwLock::new(channels_config),
+        shutdown_notify: Arc::new(tokio::sync::Notify::new()),
     });
 
     // CORS: allow localhost origins by default. If API key is set, the API
@@ -710,11 +711,12 @@ pub async fn run_daemon(
     // Run server with graceful shutdown.
     // SECURITY: `into_make_service_with_connect_info` injects the peer
     // SocketAddr so the auth middleware can check for loopback connections.
+    let api_shutdown = state.shutdown_notify.clone();
     axum::serve(
         listener,
         app.into_make_service_with_connect_info::<SocketAddr>(),
     )
-    .with_graceful_shutdown(shutdown_signal())
+    .with_graceful_shutdown(shutdown_signal(api_shutdown))
     .await?;
 
     // Clean up daemon info file
@@ -752,11 +754,11 @@ pub fn read_daemon_info(home_dir: &Path) -> Option<DaemonInfo> {
     serde_json::from_str(&contents).ok()
 }
 
-/// Wait for an OS termination signal.
+/// Wait for an OS termination signal OR an API shutdown request.
 ///
-/// On Unix: listens for SIGINT and SIGTERM.
-/// On Windows: listens for Ctrl+C.
-async fn shutdown_signal() {
+/// On Unix: listens for SIGINT, SIGTERM, and API notify.
+/// On Windows: listens for Ctrl+C and API notify.
+async fn shutdown_signal(api_shutdown: Arc<tokio::sync::Notify>) {
     #[cfg(unix)]
     {
         use tokio::signal::unix::{signal, SignalKind};
@@ -770,15 +772,22 @@ async fn shutdown_signal() {
             _ = sigterm.recv() => {
                 info!("Received SIGTERM, shutting down...");
             }
+            _ = api_shutdown.notified() => {
+                info!("Shutdown requested via API, shutting down...");
+            }
         }
     }
 
     #[cfg(not(unix))]
     {
-        tokio::signal::ctrl_c()
-            .await
-            .expect("Failed to install Ctrl+C handler");
-        info!("Ctrl+C received, shutting down...");
+        tokio::select! {
+            _ = tokio::signal::ctrl_c() => {
+                info!("Ctrl+C received, shutting down...");
+            }
+            _ = api_shutdown.notified() => {
+                info!("Shutdown requested via API, shutting down...");
+            }
+        }
     }
 }
 
diff --git a/crates/openfang-api/tests/api_integration_test.rs b/crates/openfang-api/tests/api_integration_test.rs
index c00effa7..87667aa1 100644
--- a/crates/openfang-api/tests/api_integration_test.rs
+++ b/crates/openfang-api/tests/api_integration_test.rs
@@ -75,6 +75,7 @@ async fn start_test_server_with_provider(
         peer_registry: None,
         bridge_manager: tokio::sync::Mutex::new(None),
         channels_config: tokio::sync::RwLock::new(Default::default()),
+        shutdown_notify: Arc::new(tokio::sync::Notify::new()),
     });
 
     let app = Router::new()
@@ -700,6 +701,7 @@ async fn start_test_server_with_auth(api_key: &str) -> TestServer {
         peer_registry: None,
         bridge_manager: tokio::sync::Mutex::new(None),
         channels_config: tokio::sync::RwLock::new(Default::default()),
+        shutdown_notify: Arc::new(tokio::sync::Notify::new()),
     });
 
     let api_key_state = state.kernel.config.api_key.clone();
diff --git a/crates/openfang-api/tests/daemon_lifecycle_test.rs b/crates/openfang-api/tests/daemon_lifecycle_test.rs
index 86028309..81fcfa7a 100644
--- a/crates/openfang-api/tests/daemon_lifecycle_test.rs
+++ b/crates/openfang-api/tests/daemon_lifecycle_test.rs
@@ -112,6 +112,7 @@ async fn test_full_daemon_lifecycle() {
         peer_registry: None,
         bridge_manager: tokio::sync::Mutex::new(None),
         channels_config: tokio::sync::RwLock::new(Default::default()),
+        shutdown_notify: Arc::new(tokio::sync::Notify::new()),
     });
 
     let app = Router::new()
@@ -234,6 +235,7 @@ async fn test_server_immediate_responsiveness() {
         peer_registry: None,
         bridge_manager: tokio::sync::Mutex::new(None),
         channels_config: tokio::sync::RwLock::new(Default::default()),
+        shutdown_notify: Arc::new(tokio::sync::Notify::new()),
     });
 
     let app = Router::new()
diff --git a/crates/openfang-api/tests/load_test.rs b/crates/openfang-api/tests/load_test.rs
index 08dfbd01..5840a79f 100644
--- a/crates/openfang-api/tests/load_test.rs
+++ b/crates/openfang-api/tests/load_test.rs
@@ -56,6 +56,7 @@ async fn start_test_server() -> TestServer {
         peer_registry: None,
         bridge_manager: tokio::sync::Mutex::new(None),
         channels_config: tokio::sync::RwLock::new(Default::default()),
+        shutdown_notify: Arc::new(tokio::sync::Notify::new()),
     });
 
     let app = Router::new()
diff --git a/crates/openfang-cli/src/main.rs b/crates/openfang-cli/src/main.rs
index fb819a3f..5d908ff4 100644
--- a/crates/openfang-cli/src/main.rs
+++ b/crates/openfang-cli/src/main.rs
@@ -1332,7 +1332,23 @@ fn cmd_stop() {
             let client = daemon_client();
             match client.post(format!("{base}/api/shutdown")).send() {
                 Ok(r) if r.status().is_success() => {
-                    ui::success("Daemon is shutting down");
+                    // Wait for daemon to actually stop (up to 5 seconds)
+                    for _ in 0..10 {
+                        std::thread::sleep(std::time::Duration::from_millis(500));
+                        if find_daemon().is_none() {
+                            ui::success("Daemon stopped");
+                            return;
+                        }
+                    }
+                    // Still alive — force kill via PID
+                    if let Some(home) = dirs::home_dir() {
+                        let of_dir = home.join(".openfang");
+                        if let Some(info) = read_daemon_info(&of_dir) {
+                            force_kill_pid(info.pid);
+                            let _ = std::fs::remove_file(of_dir.join("daemon.json"));
+                        }
+                    }
+                    ui::success("Daemon stopped (forced)");
                 }
                 Ok(r) => {
                     ui::error(&format!("Shutdown request failed ({})", r.status()));
@@ -1351,6 +1367,21 @@ fn cmd_stop() {
     }
 }
 
+fn force_kill_pid(pid: u32) {
+    #[cfg(unix)]
+    {
+        let _ = std::process::Command::new("kill")
+            .args(["-9", &pid.to_string()])
+            .output();
+    }
+    #[cfg(windows)]
+    {
+        let _ = std::process::Command::new("taskkill")
+            .args(["/PID", &pid.to_string(), "/F"])
+            .output();
+    }
+}
+
 /// Show context-aware error for kernel boot failures.
 fn boot_kernel_error(e: &openfang_kernel::error::KernelError) {
     let msg = e.to_string();
diff --git a/docker-compose.yml b/docker-compose.yml
index c264f40e..b09f85f0 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,8 +1,12 @@
+# NOTE: The GHCR image (ghcr.io/rightnow-ai/openfang) is not yet public.
+# For now, build from source using `docker compose up --build`.
+# See: https://github.com/RightNow-AI/openfang/issues/12
+
 version: "3.8"
 services:
   openfang:
     build: .
-    image: ghcr.io/rightnow-ai/openfang:latest
+    # image: ghcr.io/rightnow-ai/openfang:latest  # Uncomment when GHCR is public
     ports:
       - "4200:4200"
     volumes: