diff --git a/apps/desktop/electron/main.mjs b/apps/desktop/electron/main.mjs
index 24d2c7cc..4257e57b 100644
--- a/apps/desktop/electron/main.mjs
+++ b/apps/desktop/electron/main.mjs
@@ -90,7 +90,7 @@ const EMPTY_WORKSPACE_LIST = Object.freeze({
 
 const IDLE_ENGINE_INFO = Object.freeze({
   running: false,
-  runtime: "openwork-orchestrator",
+  runtime: "direct",
   baseUrl: null,
   projectDir: null,
   hostname: null,
@@ -412,7 +412,7 @@ async function bootRuntimeForSelectedWorkspace() {
   if (!workspacePaths.includes(workspaceRoot)) workspacePaths.unshift(workspaceRoot);
 
   const engine = await runtimeManager.engineStart(workspaceRoot, {
-    runtime: "openwork-orchestrator",
+    runtime: "direct",
     workspacePaths,
   });
   await runtimeManager.orchestratorWorkspaceActivate({
diff --git a/apps/desktop/electron/runtime.mjs b/apps/desktop/electron/runtime.mjs
index 0566379a..647a88b5 100644
--- a/apps/desktop/electron/runtime.mjs
+++ b/apps/desktop/electron/runtime.mjs
@@ -807,6 +807,8 @@ export function createRuntimeManager({ app, desktopRoot, listLocalWorkspacePaths
     const env = await buildChildEnv({
       OPENWORK_TOKEN: tokens.clientToken,
       OPENWORK_HOST_TOKEN: tokens.hostToken,
+      ...(options.manageOpencode ? { OPENWORK_MANAGE_OPENCODE: "1" } : {}),
+      ...(options.manageOpencode ? { OPENWORK_OPENCODE_BIN: options.opencodeBinPath || resolveBinary("opencode") || "" } : {}),
       ...(options.routerHealthPort ? { OPENCODE_ROUTER_HEALTH_PORT: String(options.routerHealthPort) } : {}),
       ...(options.opencodeUsername ? { OPENWORK_OPENCODE_USERNAME: options.opencodeUsername } : {}),
       ...(options.opencodePassword ? { OPENWORK_OPENCODE_PASSWORD: options.opencodePassword } : {}),
@@ -835,6 +837,28 @@ export function createRuntimeManager({ app, desktopRoot, listLocalWorkspacePaths
     if (ownerToken) {
       await persistWorkspaceOwnerToken(activeWorkspace, ownerToken);
     }
+    if (ownerToken) {
+      try {
+        const list = await fetchJson(`${baseUrl}/workspaces`, {
+          headers: { Authorization: `Bearer ${ownerToken}` },
+        }, 5000);
+        const first = Array.isArray(list?.items) ? list.items[0] : undefined;
+        const opencode = first?.opencode;
+        if (opencode?.baseUrl) {
+          engineState.runtime = DIRECT_RUNTIME;
+          engineState.projectDir = opencode.directory ?? activeWorkspace ?? null;
+          engineState.hostname = new URL(opencode.baseUrl).hostname;
+          engineState.port = Number(new URL(opencode.baseUrl).port) || null;
+          engineState.baseUrl = opencode.baseUrl;
+          engineState.opencodeUsername = opencode.username ?? null;
+          engineState.opencodePassword = opencode.password ?? null;
+          engineState.child = null;
+          engineState.childExited = false;
+        }
+      } catch (error) {
+        appendOutput(openworkServerState, "lastStderr", `OpenWork server workspace probe: ${error instanceof Error ? error.message : String(error)}\n`);
+      }
+    }
     await persistPreferredOpenworkPort(activeWorkspace, port);
     return snapshotOpenworkServerState(openworkServerState);
   }
@@ -1040,6 +1064,8 @@ export function createRuntimeManager({ app, desktopRoot, listLocalWorkspacePaths
         opencodePassword: engineState.opencodePassword,
         routerHealthPort,
         remoteAccessEnabled: options.remoteAccessEnabled,
+        manageOpencode: options.manageOpencode === true,
+        opencodeBinPath: options.opencodeBinPath,
       });
     } catch (error) {
       appendOutput(engineState, "lastStderr", `OpenWork server: ${error instanceof Error ? error.message : String(error)}\n`);
@@ -1072,22 +1098,25 @@ export function createRuntimeManager({ app, desktopRoot, listLocalWorkspacePaths
     const workspacePaths = [safeProjectDir, ...((options.workspacePaths ?? []).filter(Boolean))].filter(
       (value, index, list) => list.indexOf(value) === index,
     );
-    const runtime = options.runtime ?? ORCHESTRATOR_RUNTIME;
+    const runtime = DIRECT_RUNTIME;
 
     try {
       lifecycleState = "starting";
-      const snapshot = runtime === ORCHESTRATOR_RUNTIME
-        ? await startOrchestratorRuntime(safeProjectDir, options)
-        : await startDirectRuntime(safeProjectDir, options);
+      engineState.runtime = runtime;
+      engineState.projectDir = safeProjectDir;
+      engineState.child = null;
+      engineState.childExited = true;
 
       await ensureRouterAndOpenwork({
         projectDir: safeProjectDir,
         workspacePaths,
         remoteAccessEnabled: options.openworkRemoteAccess === true,
+        manageOpencode: true,
+        opencodeBinPath: options.opencodeBinPath,
       });
 
       lifecycleState = "healthy";
-      return snapshot;
+      return snapshotEngineState(engineState);
     } catch (error) {
       lifecycleState = "error";
       throw error;
@@ -1144,74 +1173,54 @@ export function createRuntimeManager({ app, desktopRoot, listLocalWorkspacePaths
   }
 
   async function orchestratorStatus() {
-    const dataDir = orchestratorState.dataDir || orchestratorDataDir();
-    const stateFile = await readOrchestratorStateFile(dataDir);
-    const baseUrl = stateFile?.daemon?.baseUrl?.trim();
-    let health = null;
-    let workspaces = stateFile?.workspaces ?? [];
-    if (baseUrl) {
-      try {
-        health = await fetchJson(`${baseUrl}/health`, {}, 250);
-      } catch {
-        health = null;
-      }
-      try {
-        const list = await fetchJson(`${baseUrl}/workspaces`, {}, 250);
-        if (Array.isArray(list?.workspaces)) {
-          workspaces = list.workspaces;
-        }
-      } catch {
-        // ignore
-      }
-    }
+    const engine = snapshotEngineState(engineState);
+    const openworkServer = snapshotOpenworkServerState(openworkServerState);
+    const workspaces = engine.projectDir
+      ? [{ id: normalizeWorkspaceKey(engine.projectDir), path: engine.projectDir, name: path.basename(engine.projectDir) || "Workspace" }]
+      : [];
     return {
-      running: Boolean(health?.ok || stateFile?.daemon),
-      dataDir,
-      daemon: health?.daemon ?? stateFile?.daemon ?? null,
-      opencode: health?.opencode ?? stateFile?.opencode ?? null,
-      cliVersion: health?.cliVersion ?? stateFile?.cliVersion ?? null,
-      sidecar: health?.sidecar ?? stateFile?.sidecar ?? null,
-      binaries: health?.binaries ?? stateFile?.binaries ?? null,
-      activeId: health?.activeId ?? stateFile?.activeId ?? null,
-      workspaceCount: typeof health?.workspaceCount === "number" ? health.workspaceCount : workspaces.length,
+      running: engine.running,
+      dataDir: null,
+      daemon: openworkServer.running
+        ? { baseUrl: openworkServer.baseUrl, port: openworkServer.port, pid: openworkServer.pid, runtime: "direct" }
+        : null,
+      opencode: engine.running
+        ? { baseUrl: engine.baseUrl, port: engine.port, pid: engine.pid, projectDir: engine.projectDir, runtime: "direct" }
+        : null,
+      cliVersion: null,
+      sidecar: null,
+      binaries: null,
+      activeId: workspaces[0]?.id ?? null,
+      workspaceCount: workspaces.length,
       workspaces,
-      lastError: orchestratorState.lastStderr,
+      lastError: engine.lastStderr,
     };
   }
 
   async function orchestratorWorkspaceActivate(input) {
-    const baseUrl = await resolveOrchestratorBaseUrl();
-    const payload = { path: input.workspacePath, name: input.name ?? null };
-    const added = await fetchJson(`${baseUrl.replace(/\/+$/, "")}/workspaces`, {
-      method: "POST",
-      headers: { "Content-Type": "application/json" },
-      body: JSON.stringify(payload),
-    }, 5000);
-    const id = added?.workspace?.id;
-    if (!id) {
-      throw new Error("Failed to add workspace.");
+    const workspacePath = String(input?.workspacePath ?? "").trim();
+    if (!workspacePath) {
+      throw new Error("workspacePath is required");
     }
-    await fetch(`${baseUrl.replace(/\/+$/, "")}/workspaces/${id}/activate`, { method: "POST" });
-    return added.workspace;
+    const resolved = path.resolve(workspacePath);
+    if (normalizeWorkspaceKey(engineState.projectDir) !== normalizeWorkspaceKey(resolved)) {
+      await engineStart(resolved, {
+        runtime: DIRECT_RUNTIME,
+        workspacePaths: [resolved],
+      });
+    }
+    return {
+      id: normalizeWorkspaceKey(resolved),
+      path: resolved,
+      name: input?.name ?? (path.basename(resolved) || "Workspace"),
+    };
   }
 
   async function orchestratorInstanceDispose(workspacePath) {
-    const baseUrl = await resolveOrchestratorBaseUrl();
-    const added = await fetchJson(`${baseUrl.replace(/\/+$/, "")}/workspaces`, {
-      method: "POST",
-      headers: { "Content-Type": "application/json" },
-      body: JSON.stringify({ path: workspacePath }),
-    }, 5000);
-    const id = added?.workspace?.id;
-    if (!id) {
-      throw new Error("Failed to resolve workspace.");
+    if (normalizeWorkspaceKey(engineState.projectDir) === normalizeWorkspaceKey(workspacePath)) {
+      return true;
     }
-    const response = await fetchJson(`${baseUrl.replace(/\/+$/, "")}/instances/${id}/dispose`, {
-      method: "POST",
-      headers: { "Content-Type": "application/json" },
-      body: "",
-    }, 5000);
-    return response?.disposed === true;
+    return true;
   }
 
   async function opencodeRouterInfo() {
diff --git a/apps/server/src/cli.ts b/apps/server/src/cli.ts
index 1a5aefa7..9357322e 100644
--- a/apps/server/src/cli.ts
+++ b/apps/server/src/cli.ts
@@ -1,6 +1,7 @@
 #!/usr/bin/env bun
 
 import { parseCliArgs, printHelp, resolveServerConfig } from "./config.js";
+import { createManagedOpencodeServer, type ManagedOpencodeServer } from "./managed-opencode.js";
 import { createServerLogger, startServer } from "./server.js";
 import pkg from "../package.json" with { type: "json" };
 
@@ -18,6 +19,31 @@ if (args.version) {
 
 const config = await resolveServerConfig(args);
 const logger = createServerLogger(config);
+let managedOpencode: ManagedOpencodeServer | null = null;
+
+if (!config.opencodeBaseUrl && process.env.OPENWORK_MANAGE_OPENCODE === "1") {
+  const workspace = config.workspaces[0];
+  if (workspace?.path) {
+    managedOpencode = await createManagedOpencodeServer({
+      bin: process.env.OPENWORK_OPENCODE_BIN,
+      cwd: workspace.path,
+      env: {
+        ...(process.env.OPENWORK_DEV_MODE ? { OPENWORK_DEV_MODE: process.env.OPENWORK_DEV_MODE } : {}),
+      },
+    });
+    config.opencodeBaseUrl = managedOpencode.url;
+    config.opencodeUsername = managedOpencode.username;
+    config.opencodePassword = managedOpencode.password;
+    for (const entry of config.workspaces) {
+      entry.baseUrl ??= managedOpencode.url;
+      entry.opencodeUsername ??= managedOpencode.username;
+      entry.opencodePassword ??= managedOpencode.password;
+      entry.directory ??= entry.path;
+    }
+    logger.log("info", `Managed OpenCode listening on ${managedOpencode.url}`);
+  }
+}
+
 const server = startServer(config);
 
 const url = `http://${config.host}:${server.port}`;
@@ -46,3 +72,17 @@ if (args.verbose) {
   logger.log("info", `Token source: ${config.tokenSource}`);
   logger.log("info", `Host token source: ${config.hostTokenSource}`);
 }
+
+const shutdown = () => {
+  managedOpencode?.close();
+  (server as { stop?: (closeActiveConnections?: boolean) => void }).stop?.(true);
+};
+
+process.once("SIGINT", () => {
+  shutdown();
+  process.exit(0);
+});
+process.once("SIGTERM", () => {
+  shutdown();
+  process.exit(0);
+});
diff --git a/apps/server/src/managed-opencode.ts b/apps/server/src/managed-opencode.ts
new file mode 100644
index 00000000..a99c5d42
--- /dev/null
+++ b/apps/server/src/managed-opencode.ts
@@ -0,0 +1,91 @@
+import { spawn, type ChildProcess } from "node:child_process";
+import net from "node:net";
+import { randomUUID } from "node:crypto";
+
+export type ManagedOpencodeServer = {
+  url: string;
+  username: string;
+  password: string;
+  pid: number | null;
+  close: () => void;
+};
+
+function randomSecret(): string {
+  return randomUUID().replace(/-/g, "") + randomUUID().replace(/-/g, "");
+}
+
+async function findFreePort(hostname: string): Promise<number> {
+  return new Promise((resolve, reject) => {
+    const server = net.createServer();
+    server.once("error", reject);
+    server.listen(0, hostname, () => {
+      const address = server.address();
+      server.close(() => {
+        if (address && typeof address === "object") resolve(address.port);
+        else reject(new Error("Failed to resolve free port"));
+      });
+    });
+  });
+}
+
+export async function createManagedOpencodeServer(options: {
+  bin?: string;
+  cwd: string;
+  hostname?: string;
+  port?: number;
+  timeoutMs?: number;
+  env?: Record<string, string | undefined>;
+}): Promise<ManagedOpencodeServer> {
+  const hostname = options.hostname ?? "127.0.0.1";
+  const port = options.port ?? await findFreePort(hostname);
+  const username = randomSecret();
+  const password = randomSecret();
+  const args = ["serve", "--hostname", hostname, "--port", String(port), "--cors", "*"];
+  const child: ChildProcess = spawn(options.bin?.trim() || "opencode", args, {
+    cwd: options.cwd,
+    env: {
+      ...process.env,
+      ...options.env,
+      OPENCODE_SERVER_USERNAME: username,
+      OPENCODE_SERVER_PASSWORD: password,
+    },
+    stdio: ["ignore", "pipe", "pipe"],
+  });
+
+  const url = await new Promise<string>((resolve, reject) => {
+    const timeout = setTimeout(() => reject(new Error(`Timeout waiting for OpenCode server after ${options.timeoutMs ?? 15000}ms`)), options.timeoutMs ?? 15000);
+    let output = "";
+    const done = (value: string) => {
+      clearTimeout(timeout);
+      resolve(value);
+    };
+    const fail = (error: Error) => {
+      clearTimeout(timeout);
+      reject(error);
+    };
+    child.stdout?.on("data", (chunk) => {
+      output += chunk.toString();
+      for (const line of output.split("\n")) {
+        if (!line.startsWith("opencode server listening")) continue;
+        const match = line.match(/on\s+(https?:\/\/[^\s]+)/);
+        if (!match?.[1]) return fail(new Error(`Failed to parse OpenCode server URL from: ${line}`));
+        done(match[1]);
+      }
+    });
+    child.stderr?.on("data", (chunk) => {
+      output += chunk.toString();
+    });
+    child.once("error", fail);
+    child.once("exit", (code) => fail(new Error(`OpenCode server exited with code ${code}${output.trim() ? `\n${output}` : ""}`)));
+  });
+
+  return {
+    url,
+    username,
+    password,
+    pid: child.pid ?? null,
+    close() {
+      if (!child.killed) child.kill();
+    },
+  };
+}