diff --git a/cmd/bd/daemon_lifecycle_race_test.go b/cmd/bd/daemon_lifecycle_race_test.go
new file mode 100644
index 00000000..b1244b87
--- /dev/null
+++ b/cmd/bd/daemon_lifecycle_race_test.go
@@ -0,0 +1,726 @@
+//go:build !windows
+// +build !windows
+
+package main
+
+import (
+	"context"
+	"fmt"
+	"net"
+	"os"
+	"path/filepath"
+	"sync"
+	"sync/atomic"
+	"testing"
+	"time"
+
+	"github.com/steveyegge/beads/internal/rpc"
+)
+
+// =============================================================================
+// Daemon Lifecycle Race Condition Tests
+// =============================================================================
+//
+// These tests verify correct daemon lifecycle behavior under race conditions.
+// Run with: go test -race -run TestDaemonLifecycle -v
+//
+// Race conditions being tested:
+// 1. Startup race with multiple clients connecting simultaneously
+// 2. Shutdown with pending requests
+// 3. Crash recovery (simulated panic)
+// 4. Socket cleanup on crash
+//
+// =============================================================================
+
+// TestDaemonStartupRaceWithClients verifies daemon handles multiple clients
+// attempting to connect during startup.
+//
+// Race condition tested: Daemon is starting up while clients are trying to connect.
+// Clients should either connect successfully or get a clean rejection.
+func TestDaemonStartupRaceWithClients(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping startup race test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	socketPath := filepath.Join(tmpDir, "bd.sock")
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	defer cancel()
+
+	log := newTestLogger()
+
+	const numClients = 20
+	var (
+		connectedCount int32
+		failedCount    int32
+		startWg        sync.WaitGroup
+		connectWg      sync.WaitGroup
+	)
+
+	startWg.Add(1)
+
+	// start clients that will try to connect immediately
+	for i := 0; i < numClients; i++ {
+		connectWg.Add(1)
+		go func(clientID int) {
+			defer connectWg.Done()
+
+			// wait for server to start (but may not be ready)
+			startWg.Wait()
+
+			// try to connect with retries
+			var connected bool
+			for attempt := 0; attempt < 10; attempt++ {
+				conn, err := net.DialTimeout("unix", socketPath, 100*time.Millisecond)
+				if err == nil {
+					connected = true
+					conn.Close()
+					break
+				}
+				time.Sleep(50 * time.Millisecond)
+			}
+
+			if connected {
+				atomic.AddInt32(&connectedCount, 1)
+			} else {
+				atomic.AddInt32(&failedCount, 1)
+			}
+		}(i)
+	}
+
+	// start server
+	server, serverErrChan, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+	if err != nil {
+		t.Fatalf("Failed to start RPC server: %v", err)
+	}
+	defer func() {
+		if server != nil {
+			_ = server.Stop()
+		}
+	}()
+
+	// signal clients to start connecting
+	startWg.Done()
+
+	// wait for server to be ready
+	select {
+	case <-server.WaitReady():
+		// server is ready
+	case <-time.After(5 * time.Second):
+		t.Fatal("Server did not become ready")
+	}
+
+	// wait for all clients
+	connectWg.Wait()
+
+	t.Logf("Startup race test: %d connected, %d failed", connectedCount, failedCount)
+
+	// most clients should eventually connect
+	if connectedCount < int32(numClients/2) {
+		t.Errorf("Expected at least %d connections, got %d", numClients/2, connectedCount)
+	}
+
+	// verify no server errors
+	select {
+	case err := <-serverErrChan:
+		t.Errorf("Server error during startup race: %v", err)
+	default:
+		// no error, expected
+	}
+}
+
+// TestDaemonShutdownWithPendingRequests verifies graceful shutdown waits for
+// pending requests to complete.
+//
+// Race condition tested: Daemon is processing requests when shutdown is initiated.
+// Pending requests should complete, new requests should be rejected.
+func TestDaemonShutdownWithPendingRequests(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping shutdown test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	socketPath := filepath.Join(tmpDir, "bd.sock")
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	ctx, cancel := context.WithTimeout(context.Background(), 15*time.Second)
+	defer cancel()
+
+	log := newTestLogger()
+
+	server, _, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+	if err != nil {
+		t.Fatalf("Failed to start RPC server: %v", err)
+	}
+
+	<-server.WaitReady()
+
+	const numRequests = 10
+	var (
+		completedCount int32
+		failedCount    int32
+		requestWg      sync.WaitGroup
+	)
+
+	// start requests
+	for i := 0; i < numRequests; i++ {
+		requestWg.Add(1)
+		go func(reqID int) {
+			defer requestWg.Done()
+
+			client, err := rpc.TryConnectWithTimeout(socketPath, 1*time.Second)
+			if err != nil || client == nil {
+				atomic.AddInt32(&failedCount, 1)
+				return
+			}
+			defer client.Close()
+
+			// send a health check request
+			_, err = client.Health()
+			if err != nil {
+				atomic.AddInt32(&failedCount, 1)
+			} else {
+				atomic.AddInt32(&completedCount, 1)
+			}
+		}(i)
+	}
+
+	// give requests time to start
+	time.Sleep(50 * time.Millisecond)
+
+	// initiate shutdown while requests are in flight
+	shutdownStart := time.Now()
+	if err := server.Stop(); err != nil {
+		t.Logf("Server stop returned error (may be expected): %v", err)
+	}
+	shutdownDuration := time.Since(shutdownStart)
+
+	// wait for all requests to complete
+	requestWg.Wait()
+
+	t.Logf("Shutdown test: %d completed, %d failed, shutdown took %v",
+		completedCount, failedCount, shutdownDuration)
+
+	// shutdown should complete in reasonable time
+	if shutdownDuration > 10*time.Second {
+		t.Errorf("Shutdown took too long: %v", shutdownDuration)
+	}
+}
+
+// TestDaemonCrashRecoveryWithPanic verifies daemon recovers from handler panics.
+//
+// Race condition tested: A handler panics while other requests are in flight.
+// The panic should be caught and other requests should continue.
+func TestDaemonCrashRecoveryWithPanic(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping panic recovery test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	socketPath := filepath.Join(tmpDir, "bd.sock")
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	defer cancel()
+
+	log := newTestLogger()
+
+	server, _, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+	if err != nil {
+		t.Fatalf("Failed to start RPC server: %v", err)
+	}
+	defer func() {
+		if server != nil {
+			_ = server.Stop()
+		}
+	}()
+
+	<-server.WaitReady()
+
+	// verify server is healthy before any issues
+	client, err := rpc.TryConnectWithTimeout(socketPath, 1*time.Second)
+	if err != nil || client == nil {
+		t.Fatalf("Failed to connect before panic test: %v", err)
+	}
+
+	health, err := client.Health()
+	if err != nil {
+		t.Fatalf("Health check failed before panic: %v", err)
+	}
+	if health.Status != "healthy" {
+		t.Fatalf("Server not healthy before panic: %s", health.Status)
+	}
+	client.Close()
+
+	// the RPC server has panic recovery built in (bd-1048)
+	// send multiple requests to verify server continues working
+	const numRequests = 10
+	var successCount int32
+
+	var wg sync.WaitGroup
+	for i := 0; i < numRequests; i++ {
+		wg.Add(1)
+		go func() {
+			defer wg.Done()
+			c, err := rpc.TryConnectWithTimeout(socketPath, 1*time.Second)
+			if err != nil || c == nil {
+				return
+			}
+			defer c.Close()
+
+			if _, err := c.Health(); err == nil {
+				atomic.AddInt32(&successCount, 1)
+			}
+		}()
+	}
+
+	wg.Wait()
+
+	// most requests should succeed
+	if successCount < int32(numRequests/2) {
+		t.Errorf("Expected at least %d successful requests, got %d", numRequests/2, successCount)
+	}
+}
+
+// TestSocketCleanupOnCrash verifies socket is cleaned up when daemon crashes.
+//
+// Race condition tested: Daemon crashes and leaves socket file behind.
+// New daemon should clean up stale socket and start successfully.
+func TestSocketCleanupOnCrash(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping socket cleanup test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	socketPath := filepath.Join(tmpDir, "bd.sock")
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	// create a stale socket file (simulating crash)
+	f, err := os.Create(socketPath)
+	if err != nil {
+		t.Fatalf("Failed to create stale socket: %v", err)
+	}
+	f.Close()
+
+	// verify socket exists
+	if _, err := os.Stat(socketPath); err != nil {
+		t.Fatalf("Stale socket should exist: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	defer cancel()
+
+	log := newTestLogger()
+
+	// new daemon should clean up stale socket and start
+	server, _, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+	if err != nil {
+		t.Fatalf("Failed to start server with stale socket: %v", err)
+	}
+	defer func() {
+		if server != nil {
+			_ = server.Stop()
+		}
+	}()
+
+	<-server.WaitReady()
+
+	// verify server is working
+	client, err := rpc.TryConnectWithTimeout(socketPath, 1*time.Second)
+	if err != nil || client == nil {
+		t.Fatalf("Failed to connect after cleanup: %v", err)
+	}
+	defer client.Close()
+
+	health, err := client.Health()
+	if err != nil {
+		t.Fatalf("Health check failed: %v", err)
+	}
+	if health.Status != "healthy" {
+		t.Errorf("Server not healthy after cleanup: %s", health.Status)
+	}
+}
+
+// TestConcurrentServerStartStop verifies no race when starting/stopping rapidly.
+//
+// Race condition tested: Server Start and Stop called in rapid succession.
+// Should not cause panics or resource leaks.
+func TestConcurrentServerStartStop(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping concurrent start/stop test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	log := newTestLogger()
+
+	const cycles = 5
+	for i := 0; i < cycles; i++ {
+		socketPath := filepath.Join(tmpDir, fmt.Sprintf("bd%d.sock", i))
+		ctx, cancel := context.WithTimeout(context.Background(), 5*time.Second)
+
+		server, _, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+		if err != nil {
+			cancel()
+			t.Logf("Cycle %d: failed to start server (may be expected): %v", i, err)
+			continue
+		}
+
+		// wait for ready or timeout
+		select {
+		case <-server.WaitReady():
+			// ready
+		case <-time.After(2 * time.Second):
+			t.Logf("Cycle %d: server did not become ready", i)
+		}
+
+		// stop server
+		if err := server.Stop(); err != nil {
+			t.Logf("Cycle %d: stop error (may be expected): %v", i, err)
+		}
+
+		cancel()
+
+		// small delay between cycles
+		time.Sleep(50 * time.Millisecond)
+	}
+}
+
+// TestDaemonContextCancellation verifies daemon responds to context cancellation.
+//
+// Race condition tested: Context is cancelled while daemon is running.
+// Daemon should shut down gracefully.
+func TestDaemonContextCancellation(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping context cancellation test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	socketPath := filepath.Join(tmpDir, "bd.sock")
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	log := newTestLogger()
+
+	ctx, cancel := context.WithCancel(context.Background())
+
+	server, serverErrChan, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+	if err != nil {
+		t.Fatalf("Failed to start RPC server: %v", err)
+	}
+
+	<-server.WaitReady()
+
+	// verify server is working
+	client, err := rpc.TryConnectWithTimeout(socketPath, 1*time.Second)
+	if err != nil || client == nil {
+		t.Fatalf("Failed to connect: %v", err)
+	}
+	client.Close()
+
+	// cancel context
+	cancel()
+
+	// wait for server to detect cancellation
+	time.Sleep(200 * time.Millisecond)
+
+	// stop server explicitly
+	stopErr := server.Stop()
+	t.Logf("Stop after cancel returned: %v", stopErr)
+
+	// verify no panic occurred
+	select {
+	case err := <-serverErrChan:
+		t.Logf("Server error after cancellation: %v", err)
+	default:
+		// no error, expected
+	}
+}
+
+// TestMultipleClientsDuringShutdown verifies clients handle shutdown gracefully.
+//
+// Race condition tested: Multiple clients connected when shutdown occurs.
+// All clients should receive errors, not hang.
+func TestMultipleClientsDuringShutdown(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping multiple clients shutdown test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	socketPath := filepath.Join(tmpDir, "bd.sock")
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	ctx, cancel := context.WithTimeout(context.Background(), 15*time.Second)
+	defer cancel()
+
+	log := newTestLogger()
+
+	server, _, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+	if err != nil {
+		t.Fatalf("Failed to start RPC server: %v", err)
+	}
+
+	<-server.WaitReady()
+
+	const numClients = 10
+	clients := make([]*rpc.Client, 0, numClients)
+
+	// connect all clients
+	for i := 0; i < numClients; i++ {
+		client, err := rpc.TryConnectWithTimeout(socketPath, 1*time.Second)
+		if err != nil || client == nil {
+			t.Logf("Client %d failed to connect: %v", i, err)
+			continue
+		}
+		clients = append(clients, client)
+	}
+
+	t.Logf("Connected %d clients", len(clients))
+
+	// start requests from all clients
+	var wg sync.WaitGroup
+	var completedBeforeShutdown int32
+	var completedAfterShutdown int32
+	var errorCount int32
+
+	shutdownStarted := make(chan struct{})
+
+	for i, client := range clients {
+		wg.Add(1)
+		go func(id int, c *rpc.Client) {
+			defer wg.Done()
+			defer c.Close()
+
+			// keep making requests
+			for j := 0; j < 5; j++ {
+				select {
+				case <-shutdownStarted:
+					// after shutdown started
+					_, err := c.Health()
+					if err == nil {
+						atomic.AddInt32(&completedAfterShutdown, 1)
+					} else {
+						atomic.AddInt32(&errorCount, 1)
+					}
+				default:
+					// before shutdown
+					_, err := c.Health()
+					if err == nil {
+						atomic.AddInt32(&completedBeforeShutdown, 1)
+					}
+				}
+				time.Sleep(10 * time.Millisecond)
+			}
+		}(i, client)
+	}
+
+	// let some requests complete
+	time.Sleep(50 * time.Millisecond)
+
+	// signal shutdown started and stop server
+	close(shutdownStarted)
+	if err := server.Stop(); err != nil {
+		t.Logf("Server stop error: %v", err)
+	}
+
+	// wait for all client goroutines with timeout
+	done := make(chan struct{})
+	go func() {
+		wg.Wait()
+		close(done)
+	}()
+
+	select {
+	case <-done:
+		// all clients finished
+	case <-time.After(10 * time.Second):
+		t.Error("Clients did not finish within timeout")
+	}
+
+	t.Logf("Results: %d before shutdown, %d after shutdown, %d errors",
+		completedBeforeShutdown, completedAfterShutdown, errorCount)
+}
+
+// TestServerReadyChannelRace verifies WaitReady channel is safe for concurrent use.
+//
+// Race condition tested: Multiple goroutines waiting on WaitReady simultaneously.
+func TestServerReadyChannelRace(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping ready channel race test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	socketPath := filepath.Join(tmpDir, "bd.sock")
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	defer cancel()
+
+	log := newTestLogger()
+
+	server, _, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+	if err != nil {
+		t.Fatalf("Failed to start RPC server: %v", err)
+	}
+	defer server.Stop()
+
+	const numWaiters = 20
+	var readyCount int32
+	var wg sync.WaitGroup
+
+	for i := 0; i < numWaiters; i++ {
+		wg.Add(1)
+		go func() {
+			defer wg.Done()
+			select {
+			case <-server.WaitReady():
+				atomic.AddInt32(&readyCount, 1)
+			case <-time.After(5 * time.Second):
+				// timeout
+			}
+		}()
+	}
+
+	wg.Wait()
+
+	if readyCount != numWaiters {
+		t.Errorf("Expected %d waiters to receive ready, got %d", numWaiters, readyCount)
+	}
+}
+
+// TestEventLoopConcurrentAccess verifies event loop handles concurrent operations.
+//
+// Race condition tested: Multiple operations happening during event loop iteration.
+func TestEventLoopConcurrentAccess(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping event loop concurrent test in short mode")
+	}
+
+	tmpDir := makeSocketTempDirForLifecycle(t)
+	socketPath := filepath.Join(tmpDir, "bd.sock")
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0700); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "test.db")
+	testStore := newTestStore(t, testDBPath)
+
+	ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	defer cancel()
+
+	log := newTestLogger()
+
+	server, serverErrChan, err := startRPCServer(ctx, socketPath, testStore, tmpDir, testDBPath, log)
+	if err != nil {
+		t.Fatalf("Failed to start RPC server: %v", err)
+	}
+	defer server.Stop()
+
+	<-server.WaitReady()
+
+	ticker := time.NewTicker(100 * time.Millisecond)
+	defer ticker.Stop()
+
+	var syncCount int32
+	syncFunc := func() {
+		atomic.AddInt32(&syncCount, 1)
+	}
+
+	// run event loop in goroutine
+	loopCtx, loopCancel := context.WithTimeout(context.Background(), 1*time.Second)
+	defer loopCancel()
+
+	go func() {
+		runEventLoop(loopCtx, loopCancel, ticker, syncFunc, server, serverErrChan, 0, log)
+	}()
+
+	// concurrent client operations
+	var wg sync.WaitGroup
+	for i := 0; i < 5; i++ {
+		wg.Add(1)
+		go func() {
+			defer wg.Done()
+			for j := 0; j < 5; j++ {
+				c, err := rpc.TryConnectWithTimeout(socketPath, 500*time.Millisecond)
+				if err != nil || c == nil {
+					continue
+				}
+				_, _ = c.Health()
+				c.Close()
+				time.Sleep(50 * time.Millisecond)
+			}
+		}()
+	}
+
+	wg.Wait()
+	<-loopCtx.Done()
+
+	if syncCount == 0 {
+		t.Error("Event loop sync function was never called")
+	}
+}
+
+// Helper function to create temp dir for lifecycle tests
+func makeSocketTempDirForLifecycle(t *testing.T) string {
+	t.Helper()
+	// use /tmp for socket paths to avoid path length issues
+	tmpDir, err := os.MkdirTemp("/tmp", "beads-lifecycle-test-*")
+	if err != nil {
+		t.Fatalf("Failed to create temp dir: %v", err)
+	}
+	t.Cleanup(func() {
+		os.RemoveAll(tmpDir)
+	})
+	return tmpDir
+}