diff --git a/cmd/bd/cli_fast_test.go b/cmd/bd/cli_fast_test.go
index 5a64a930..560ff771 100644
--- a/cmd/bd/cli_fast_test.go
+++ b/cmd/bd/cli_fast_test.go
@@ -312,6 +312,94 @@ func TestCLI_UpdateLabels(t *testing.T) {
 	}
 }
 
+func TestCLI_UpdateEphemeral(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping slow CLI test in short mode")
+	}
+	// Note: Not using t.Parallel() because inProcessMutex serializes execution anyway
+	tmpDir := setupCLITestDB(t)
+	out := runBDInProcess(t, tmpDir, "create", "Issue for ephemeral testing", "-p", "2", "--json")
+
+	var issue map[string]interface{}
+	if err := json.Unmarshal([]byte(out), &issue); err != nil {
+		t.Fatalf("Failed to parse create output: %v", err)
+	}
+	id := issue["id"].(string)
+
+	// Mark as ephemeral
+	runBDInProcess(t, tmpDir, "update", id, "--ephemeral")
+
+	out = runBDInProcess(t, tmpDir, "show", id, "--json")
+	var updated []map[string]interface{}
+	if err := json.Unmarshal([]byte(out), &updated); err != nil {
+		t.Fatalf("Failed to parse show output: %v", err)
+	}
+	if updated[0]["ephemeral"] != true {
+		t.Errorf("Expected ephemeral to be true after --ephemeral, got: %v", updated[0]["ephemeral"])
+	}
+}
+
+func TestCLI_UpdatePersistent(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping slow CLI test in short mode")
+	}
+	// Note: Not using t.Parallel() because inProcessMutex serializes execution anyway
+	tmpDir := setupCLITestDB(t)
+
+	// Create ephemeral issue directly
+	out := runBDInProcess(t, tmpDir, "create", "Ephemeral issue", "-p", "2", "--ephemeral", "--json")
+
+	var issue map[string]interface{}
+	if err := json.Unmarshal([]byte(out), &issue); err != nil {
+		t.Fatalf("Failed to parse create output: %v", err)
+	}
+	id := issue["id"].(string)
+
+	// Verify it's ephemeral
+	out = runBDInProcess(t, tmpDir, "show", id, "--json")
+	var initial []map[string]interface{}
+	if err := json.Unmarshal([]byte(out), &initial); err != nil {
+		t.Fatalf("Failed to parse show output: %v", err)
+	}
+	if initial[0]["ephemeral"] != true {
+		t.Fatalf("Expected issue to be ephemeral initially, got: %v", initial[0]["ephemeral"])
+	}
+
+	// Promote to persistent
+	runBDInProcess(t, tmpDir, "update", id, "--persistent")
+
+	out = runBDInProcess(t, tmpDir, "show", id, "--json")
+	var updated []map[string]interface{}
+	if err := json.Unmarshal([]byte(out), &updated); err != nil {
+		t.Fatalf("Failed to parse show output after persistent: %v", err)
+	}
+	if updated[0]["ephemeral"] == true {
+		t.Errorf("Expected ephemeral to be false after --persistent, got: %v", updated[0]["ephemeral"])
+	}
+}
+
+func TestCLI_UpdateEphemeralMutualExclusion(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping slow CLI test in short mode")
+	}
+	// Note: Not using t.Parallel() because inProcessMutex serializes execution anyway
+	tmpDir := setupCLITestDB(t)
+	out := runBDInProcess(t, tmpDir, "create", "Issue for mutual exclusion test", "-p", "2", "--json")
+
+	var issue map[string]interface{}
+	json.Unmarshal([]byte(out), &issue)
+	id := issue["id"].(string)
+
+	// Both flags should error
+	_, stderr, err := runBDInProcessAllowError(t, tmpDir, "update", id, "--ephemeral", "--persistent")
+	if err == nil {
+		t.Errorf("Expected error when both flags specified, got none")
+	}
+	if !strings.Contains(stderr, "cannot specify both") {
+		t.Errorf("Expected mutual exclusion error message, got: %v", stderr)
+	}
+}
+
 func TestCLI_Close(t *testing.T) {
 	if testing.Short() {
 		t.Skip("skipping slow CLI test in short mode")
diff --git a/cmd/bd/update.go b/cmd/bd/update.go
index 117ddbc4..53606559 100644
--- a/cmd/bd/update.go
+++ b/cmd/bd/update.go
@@ -165,6 +165,19 @@ create, update, show, or close operation).`,
 				updates["defer_until"] = t
 			}
 		}
+		// Ephemeral/persistent flags
+		// Note: storage layer uses "wisp" field name, maps to "ephemeral" column
+		ephemeralChanged := cmd.Flags().Changed("ephemeral")
+		persistentChanged := cmd.Flags().Changed("persistent")
+		if ephemeralChanged && persistentChanged {
+			FatalErrorRespectJSON("cannot specify both --ephemeral and --persistent flags")
+		}
+		if ephemeralChanged {
+			updates["wisp"] = true
+		}
+		if persistentChanged {
+			updates["wisp"] = false
+		}
 
 		// Get claim flag
 		claimFlag, _ := cmd.Flags().GetBool("claim")
@@ -278,6 +291,10 @@ create, update, show, or close operation).`,
 					empty := ""
 					updateArgs.DeferUntil = &empty
 				}
+				// Ephemeral/persistent
+				if wisp, ok := updates["wisp"].(bool); ok {
+					updateArgs.Ephemeral = &wisp
+				}
 
 				// Set claim flag for atomic claim operation
 				updateArgs.Claim = claimFlag
@@ -613,6 +630,9 @@ func init() {
 	updateCmd.Flags().String("defer", "", "Defer until date (empty to clear). Issue hidden from bd ready until then")
 	// Gate fields (bd-z6kw)
 	updateCmd.Flags().String("await-id", "", "Set gate await_id (e.g., GitHub run ID for gh:run gates)")
+	// Ephemeral/persistent flags
+	updateCmd.Flags().Bool("ephemeral", false, "Mark issue as ephemeral (wisp) - not exported to JSONL")
+	updateCmd.Flags().Bool("persistent", false, "Mark issue as persistent (promote wisp to regular issue)")
 	updateCmd.ValidArgsFunction = issueIDCompletion
 	rootCmd.AddCommand(updateCmd)
 }
diff --git a/internal/rpc/server_issues_epics.go b/internal/rpc/server_issues_epics.go
index 05fffd80..25ee8ed3 100644
--- a/internal/rpc/server_issues_epics.go
+++ b/internal/rpc/server_issues_epics.go
@@ -92,7 +92,7 @@ func updatesFromArgs(a UpdateArgs) (map[string]interface{}, error) {
 		u["sender"] = *a.Sender
 	}
 	if a.Ephemeral != nil {
-		u["ephemeral"] = *a.Ephemeral
+		u["wisp"] = *a.Ephemeral // Storage API uses "wisp", maps to "ephemeral" column
 	}
 	if a.RepliesTo != nil {
 		u["replies_to"] = *a.RepliesTo