diff --git a/cmd/bd/daemon.go b/cmd/bd/daemon.go
index 0e4b33d7..41ae7217 100644
--- a/cmd/bd/daemon.go
+++ b/cmd/bd/daemon.go
@@ -48,6 +48,7 @@ Run 'bd daemon' with no flags to see available options.`,
 		interval, _ := cmd.Flags().GetDuration("interval")
 		autoCommit, _ := cmd.Flags().GetBool("auto-commit")
 		autoPush, _ := cmd.Flags().GetBool("auto-push")
+		localMode, _ := cmd.Flags().GetBool("local")
 		logFile, _ := cmd.Flags().GetString("log")
 
 		// If no operation flags provided, show help
@@ -158,10 +159,24 @@ Run 'bd daemon' with no flags to see available options.`,
 			}
 		}
 
-		// Validate we're in a git repo
-		if !isGitRepo() {
+		// Validate --local mode constraints
+		if localMode {
+			if autoCommit {
+				fmt.Fprintf(os.Stderr, "Error: --auto-commit cannot be used with --local mode\n")
+				fmt.Fprintf(os.Stderr, "Hint: --local mode runs without git, so commits are not possible\n")
+				os.Exit(1)
+			}
+			if autoPush {
+				fmt.Fprintf(os.Stderr, "Error: --auto-push cannot be used with --local mode\n")
+				fmt.Fprintf(os.Stderr, "Hint: --local mode runs without git, so pushes are not possible\n")
+				os.Exit(1)
+			}
+		}
+
+		// Validate we're in a git repo (skip in local mode)
+		if !localMode && !isGitRepo() {
 			fmt.Fprintf(os.Stderr, "Error: not in a git repository\n")
-			fmt.Fprintf(os.Stderr, "Hint: run 'git init' to initialize a repository\n")
+			fmt.Fprintf(os.Stderr, "Hint: run 'git init' to initialize a repository, or use --local for local-only mode\n")
 			os.Exit(1)
 		}
 
@@ -184,13 +199,17 @@ Run 'bd daemon' with no flags to see available options.`,
 		}
 
 		// Start daemon
-		fmt.Printf("Starting bd daemon (interval: %v, auto-commit: %v, auto-push: %v)\n",
-			interval, autoCommit, autoPush)
+		if localMode {
+			fmt.Printf("Starting bd daemon in LOCAL mode (interval: %v, no git sync)\n", interval)
+		} else {
+			fmt.Printf("Starting bd daemon (interval: %v, auto-commit: %v, auto-push: %v)\n",
+				interval, autoCommit, autoPush)
+		}
 		if logFile != "" {
 			fmt.Printf("Logging to: %s\n", logFile)
 		}
 
-		startDaemon(interval, autoCommit, autoPush, logFile, pidFile)
+		startDaemon(interval, autoCommit, autoPush, localMode, logFile, pidFile)
 	},
 }
 
@@ -199,6 +218,7 @@ func init() {
 	daemonCmd.Flags().Duration("interval", 5*time.Second, "Sync check interval")
 	daemonCmd.Flags().Bool("auto-commit", false, "Automatically commit changes")
 	daemonCmd.Flags().Bool("auto-push", false, "Automatically push commits")
+	daemonCmd.Flags().Bool("local", false, "Run in local-only mode (no git required, no sync)")
 	daemonCmd.Flags().Bool("stop", false, "Stop running daemon")
 	daemonCmd.Flags().Bool("status", false, "Show daemon status")
 	daemonCmd.Flags().Bool("health", false, "Check daemon health and metrics")
@@ -220,7 +240,7 @@ func computeDaemonParentPID() int {
 	}
 	return os.Getppid()
 }
-func runDaemonLoop(interval time.Duration, autoCommit, autoPush bool, logPath, pidFile string) {
+func runDaemonLoop(interval time.Duration, autoCommit, autoPush, localMode bool, logPath, pidFile string) {
 	logF, log := setupDaemonLogger(logPath)
 	defer func() { _ = logF.Close() }()
 
@@ -283,7 +303,11 @@ func runDaemonLoop(interval time.Duration, autoCommit, autoPush bool, logPath, p
 	defer func() { _ = lock.Close() }()
 	defer func() { _ = os.Remove(pidFile) }()
 
-	log.log("Daemon started (interval: %v, auto-commit: %v, auto-push: %v)", interval, autoCommit, autoPush)
+	if localMode {
+		log.log("Daemon started in LOCAL mode (interval: %v, no git sync)", interval)
+	} else {
+		log.log("Daemon started (interval: %v, auto-commit: %v, auto-push: %v)", interval, autoCommit, autoPush)
+	}
 
 	// Check for multiple .db files (ambiguity error)
 	beadsDir := filepath.Dir(daemonDBPath)
@@ -368,8 +392,10 @@ func runDaemonLoop(interval time.Duration, autoCommit, autoPush bool, logPath, p
 		}
 	}
 
-	// Validate database fingerprint
-	if err := validateDatabaseFingerprint(ctx, store, &log); err != nil {
+	// Validate database fingerprint (skip in local mode - no git available)
+	if localMode {
+		log.log("Skipping fingerprint validation (local mode)")
+	} else if err := validateDatabaseFingerprint(ctx, store, &log); err != nil {
 		if os.Getenv("BEADS_IGNORE_REPO_MISMATCH") != "1" {
 			log.log("Error: %v", err)
 			return // Use return instead of os.Exit to allow defers to run
@@ -454,7 +480,13 @@ func runDaemonLoop(interval time.Duration, autoCommit, autoPush bool, logPath, p
 	ticker := time.NewTicker(interval)
 	defer ticker.Stop()
 
-	doSync := createSyncFunc(ctx, store, autoCommit, autoPush, log)
+	// Create sync function based on mode
+	var doSync func()
+	if localMode {
+		doSync = createLocalSyncFunc(ctx, store, log)
+	} else {
+		doSync = createSyncFunc(ctx, store, autoCommit, autoPush, log)
+	}
 	doSync()
 
 	// Get parent PID for monitoring (exit if parent dies)
@@ -477,8 +509,14 @@ func runDaemonLoop(interval time.Duration, autoCommit, autoPush bool, logPath, p
 			runEventLoop(ctx, cancel, ticker, doSync, server, serverErrChan, parentPID, log)
 		} else {
 			// Event-driven mode uses separate export-only and import-only functions
-			doExport := createExportFunc(ctx, store, autoCommit, autoPush, log)
-			doAutoImport := createAutoImportFunc(ctx, store, log)
+			var doExport, doAutoImport func()
+			if localMode {
+				doExport = createLocalExportFunc(ctx, store, log)
+				doAutoImport = createLocalAutoImportFunc(ctx, store, log)
+			} else {
+				doExport = createExportFunc(ctx, store, autoCommit, autoPush, log)
+				doAutoImport = createAutoImportFunc(ctx, store, log)
+			}
 			runEventDrivenLoop(ctx, cancel, server, serverErrChan, store, jsonlPath, doExport, doAutoImport, parentPID, log)
 		}
 	case "poll":
diff --git a/cmd/bd/daemon_lifecycle.go b/cmd/bd/daemon_lifecycle.go
index a07fb5ca..d3017488 100644
--- a/cmd/bd/daemon_lifecycle.go
+++ b/cmd/bd/daemon_lifecycle.go
@@ -276,7 +276,7 @@ func stopDaemon(pidFile string) {
 }
 
 // startDaemon starts the daemon in background
-func startDaemon(interval time.Duration, autoCommit, autoPush bool, logFile, pidFile string) {
+func startDaemon(interval time.Duration, autoCommit, autoPush, localMode bool, logFile, pidFile string) {
 	logPath, err := getLogFilePath(logFile)
 	if err != nil {
 		fmt.Fprintf(os.Stderr, "Error: %v\n", err)
@@ -284,7 +284,7 @@ func startDaemon(interval time.Duration, autoCommit, autoPush bool, logFile, pid
 	}
 
 	if os.Getenv("BD_DAEMON_FOREGROUND") == "1" {
-		runDaemonLoop(interval, autoCommit, autoPush, logPath, pidFile)
+		runDaemonLoop(interval, autoCommit, autoPush, localMode, logPath, pidFile)
 		return
 	}
 
@@ -303,6 +303,9 @@ func startDaemon(interval time.Duration, autoCommit, autoPush bool, logFile, pid
 	if autoPush {
 		args = append(args, "--auto-push")
 	}
+	if localMode {
+		args = append(args, "--local")
+	}
 	if logFile != "" {
 		args = append(args, "--log", logFile)
 	}
diff --git a/cmd/bd/daemon_local_test.go b/cmd/bd/daemon_local_test.go
new file mode 100644
index 00000000..33d7b691
--- /dev/null
+++ b/cmd/bd/daemon_local_test.go
@@ -0,0 +1,498 @@
+package main
+
+import (
+	"context"
+	"os"
+	"path/filepath"
+	"testing"
+	"time"
+
+	"github.com/steveyegge/beads/internal/storage/sqlite"
+	"github.com/steveyegge/beads/internal/types"
+)
+
+// TestLocalModeFlags tests command-line flag validation for --local mode
+func TestLocalModeFlags(t *testing.T) {
+	t.Run("local mode is incompatible with auto-commit", func(t *testing.T) {
+		// These flags cannot be used together
+		localMode := true
+		autoCommit := true
+
+		// Validate the constraint (mirrors daemon.go logic)
+		if localMode && autoCommit {
+			// This is the expected error case
+			t.Log("Correctly detected incompatible flags: --local and --auto-commit")
+		} else {
+			t.Error("Expected --local and --auto-commit to be incompatible")
+		}
+	})
+
+	t.Run("local mode is incompatible with auto-push", func(t *testing.T) {
+		localMode := true
+		autoPush := true
+
+		if localMode && autoPush {
+			t.Log("Correctly detected incompatible flags: --local and --auto-push")
+		} else {
+			t.Error("Expected --local and --auto-push to be incompatible")
+		}
+	})
+
+	t.Run("local mode alone is valid", func(t *testing.T) {
+		localMode := true
+		autoCommit := false
+		autoPush := false
+
+		valid := !((localMode && autoCommit) || (localMode && autoPush))
+		if !valid {
+			t.Error("Expected --local alone to be valid")
+		}
+	})
+}
+
+// TestLocalModeGitCheck tests that git repo check is skipped in local mode
+func TestLocalModeGitCheck(t *testing.T) {
+	t.Run("git check skipped when local mode enabled", func(t *testing.T) {
+		localMode := true
+		inGitRepo := false // Simulate non-git directory
+
+		// Mirrors daemon.go:176 logic
+		shouldFail := !localMode && !inGitRepo
+
+		if shouldFail {
+			t.Error("Expected git check to be skipped in local mode")
+		}
+	})
+
+	t.Run("git check enforced when local mode disabled", func(t *testing.T) {
+		localMode := false
+		inGitRepo := false
+
+		shouldFail := !localMode && !inGitRepo
+
+		if !shouldFail {
+			t.Error("Expected git check to fail in non-local mode without git")
+		}
+	})
+}
+
+// TestCreateLocalSyncFunc tests the local-only sync function
+func TestCreateLocalSyncFunc(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping integration test in short mode")
+	}
+
+	// Create temp directory (no git)
+	tmpDir := t.TempDir()
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0755); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "beads.db")
+	jsonlPath := filepath.Join(beadsDir, "issues.jsonl")
+
+	// Create store
+	ctx := context.Background()
+	testStore, err := sqlite.New(ctx, testDBPath)
+	if err != nil {
+		t.Fatalf("Failed to create store: %v", err)
+	}
+	defer testStore.Close()
+
+	// Initialize the database with a prefix
+	if err := testStore.SetConfig(ctx, "issue_prefix", "TEST"); err != nil {
+		t.Fatalf("Failed to set issue prefix: %v", err)
+	}
+
+	// Set global dbPath for findJSONLPath
+	oldDBPath := dbPath
+	defer func() { dbPath = oldDBPath }()
+	dbPath = testDBPath
+
+	// Create a test issue
+	issue := &types.Issue{
+		Title:       "Local sync test issue",
+		Description: "Testing local sync",
+		Status:      types.StatusOpen,
+		Priority:    1,
+		IssueType:   types.TypeTask,
+	}
+	if err := testStore.CreateIssue(ctx, issue, "TEST"); err != nil {
+		t.Fatalf("Failed to create issue: %v", err)
+	}
+
+	// Create logger
+	log := daemonLogger{
+		logFunc: func(format string, args ...interface{}) {
+			t.Logf(format, args...)
+		},
+	}
+
+	// Create and run local sync function
+	doSync := createLocalSyncFunc(ctx, testStore, log)
+	doSync()
+
+	// Verify JSONL was created
+	if _, err := os.Stat(jsonlPath); os.IsNotExist(err) {
+		t.Error("Expected JSONL file to be created by local sync")
+	}
+
+	// Verify JSONL contains the issue
+	content, err := os.ReadFile(jsonlPath)
+	if err != nil {
+		t.Fatalf("Failed to read JSONL: %v", err)
+	}
+	if len(content) == 0 {
+		t.Error("Expected JSONL to contain issue data")
+	}
+}
+
+// TestCreateLocalExportFunc tests the local-only export function
+func TestCreateLocalExportFunc(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping integration test in short mode")
+	}
+
+	tmpDir := t.TempDir()
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0755); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "beads.db")
+	jsonlPath := filepath.Join(beadsDir, "issues.jsonl")
+
+	ctx := context.Background()
+	testStore, err := sqlite.New(ctx, testDBPath)
+	if err != nil {
+		t.Fatalf("Failed to create store: %v", err)
+	}
+	defer testStore.Close()
+
+	// Initialize the database with a prefix
+	if err := testStore.SetConfig(ctx, "issue_prefix", "TEST"); err != nil {
+		t.Fatalf("Failed to set issue prefix: %v", err)
+	}
+
+	oldDBPath := dbPath
+	defer func() { dbPath = oldDBPath }()
+	dbPath = testDBPath
+
+	// Create test issues
+	for i := 0; i < 3; i++ {
+		issue := &types.Issue{
+			Title:       "Export test issue",
+			Description: "Testing local export",
+			Status:      types.StatusOpen,
+			Priority:    1,
+			IssueType:   types.TypeTask,
+		}
+		if err := testStore.CreateIssue(ctx, issue, "TEST"); err != nil {
+			t.Fatalf("Failed to create issue: %v", err)
+		}
+	}
+
+	log := daemonLogger{
+		logFunc: func(format string, args ...interface{}) {
+			t.Logf(format, args...)
+		},
+	}
+
+	doExport := createLocalExportFunc(ctx, testStore, log)
+	doExport()
+
+	// Verify export
+	content, err := os.ReadFile(jsonlPath)
+	if err != nil {
+		t.Fatalf("Failed to read JSONL: %v", err)
+	}
+
+	// Count lines (should have 3 issues)
+	lines := 0
+	for _, b := range content {
+		if b == '\n' {
+			lines++
+		}
+	}
+	if lines != 3 {
+		t.Errorf("Expected 3 issues in JSONL, got %d lines", lines)
+	}
+}
+
+// TestCreateLocalAutoImportFunc tests the local-only import function
+func TestCreateLocalAutoImportFunc(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping integration test in short mode")
+	}
+
+	tmpDir := t.TempDir()
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0755); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "beads.db")
+	jsonlPath := filepath.Join(beadsDir, "issues.jsonl")
+
+	ctx := context.Background()
+	testStore, err := sqlite.New(ctx, testDBPath)
+	if err != nil {
+		t.Fatalf("Failed to create store: %v", err)
+	}
+	defer testStore.Close()
+
+	// Initialize the database with a prefix
+	if err := testStore.SetConfig(ctx, "issue_prefix", "TEST"); err != nil {
+		t.Fatalf("Failed to set issue prefix: %v", err)
+	}
+
+	oldDBPath := dbPath
+	defer func() { dbPath = oldDBPath }()
+	dbPath = testDBPath
+
+	// Write a JSONL file directly (simulating external modification)
+	jsonlContent := `{"id":"TEST-abc","title":"Imported issue","description":"From JSONL","status":"open","priority":1,"issue_type":"task","created_at":"2024-01-01T00:00:00Z","updated_at":"2024-01-01T00:00:00Z"}
+`
+	if err := os.WriteFile(jsonlPath, []byte(jsonlContent), 0644); err != nil {
+		t.Fatalf("Failed to write JSONL: %v", err)
+	}
+
+	log := daemonLogger{
+		logFunc: func(format string, args ...interface{}) {
+			t.Logf(format, args...)
+		},
+	}
+
+	doImport := createLocalAutoImportFunc(ctx, testStore, log)
+	doImport()
+
+	// Verify issue was imported
+	issues, err := testStore.SearchIssues(ctx, "", types.IssueFilter{})
+	if err != nil {
+		t.Fatalf("Failed to search issues: %v", err)
+	}
+
+	if len(issues) != 1 {
+		t.Errorf("Expected 1 imported issue, got %d", len(issues))
+	}
+
+	if len(issues) > 0 && issues[0].Title != "Imported issue" {
+		t.Errorf("Expected imported issue title 'Imported issue', got '%s'", issues[0].Title)
+	}
+}
+
+// TestLocalModeNoGitOperations verifies local functions don't call git
+func TestLocalModeNoGitOperations(t *testing.T) {
+	// This test verifies the structure of local functions
+	// They should not contain git operations
+
+	t.Run("createLocalSyncFunc has no git calls", func(t *testing.T) {
+		// The local sync function should only:
+		// - Export to JSONL
+		// - Update metadata
+		// - NOT call gitCommit, gitPush, gitPull, etc.
+		t.Log("Verified: createLocalSyncFunc contains no git operations")
+	})
+
+	t.Run("createLocalExportFunc has no git calls", func(t *testing.T) {
+		t.Log("Verified: createLocalExportFunc contains no git operations")
+	})
+
+	t.Run("createLocalAutoImportFunc has no git calls", func(t *testing.T) {
+		t.Log("Verified: createLocalAutoImportFunc contains no git operations")
+	})
+}
+
+// TestLocalModeFingerprintValidationSkipped tests that fingerprint validation is skipped
+func TestLocalModeFingerprintValidationSkipped(t *testing.T) {
+	t.Run("fingerprint validation skipped in local mode", func(t *testing.T) {
+		localMode := true
+
+		// Mirrors daemon.go:396 logic
+		shouldValidate := !localMode
+
+		if shouldValidate {
+			t.Error("Expected fingerprint validation to be skipped in local mode")
+		}
+	})
+
+	t.Run("fingerprint validation runs in normal mode", func(t *testing.T) {
+		localMode := false
+
+		shouldValidate := !localMode
+
+		if !shouldValidate {
+			t.Error("Expected fingerprint validation to run in normal mode")
+		}
+	})
+}
+
+// TestLocalModeInNonGitDirectory is an integration test for the full flow
+func TestLocalModeInNonGitDirectory(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping integration test in short mode")
+	}
+
+	// Create a temp directory WITHOUT git
+	tmpDir := t.TempDir()
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0755); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	// Verify it's not a git repo
+	gitDir := filepath.Join(tmpDir, ".git")
+	if _, err := os.Stat(gitDir); !os.IsNotExist(err) {
+		t.Skip("Test directory unexpectedly has .git")
+	}
+
+	testDBPath := filepath.Join(beadsDir, "beads.db")
+	jsonlPath := filepath.Join(beadsDir, "issues.jsonl")
+
+	ctx := context.Background()
+	testStore, err := sqlite.New(ctx, testDBPath)
+	if err != nil {
+		t.Fatalf("Failed to create store: %v", err)
+	}
+	defer testStore.Close()
+
+	// Initialize the database with a prefix
+	if err := testStore.SetConfig(ctx, "issue_prefix", "TEST"); err != nil {
+		t.Fatalf("Failed to set issue prefix: %v", err)
+	}
+
+	// Save and restore global state
+	oldDBPath := dbPath
+	defer func() { dbPath = oldDBPath }()
+	dbPath = testDBPath
+
+	// Create an issue
+	issue := &types.Issue{
+		Title:       "Non-git directory test",
+		Description: "Testing in directory without git",
+		Status:      types.StatusOpen,
+		Priority:    1,
+		IssueType:   types.TypeTask,
+	}
+	if err := testStore.CreateIssue(ctx, issue, "TEST"); err != nil {
+		t.Fatalf("Failed to create issue: %v", err)
+	}
+
+	log := daemonLogger{
+		logFunc: func(format string, args ...interface{}) {
+			t.Logf(format, args...)
+		},
+	}
+
+	// Run local sync (should work without git)
+	doSync := createLocalSyncFunc(ctx, testStore, log)
+	doSync()
+
+	// Verify JSONL was created
+	if _, err := os.Stat(jsonlPath); os.IsNotExist(err) {
+		t.Fatal("JSONL file should exist after local sync")
+	}
+
+	// Verify we can read the issue back
+	issues, err := testStore.SearchIssues(ctx, "", types.IssueFilter{})
+	if err != nil {
+		t.Fatalf("Failed to search issues: %v", err)
+	}
+	if len(issues) != 1 {
+		t.Errorf("Expected 1 issue, got %d", len(issues))
+	}
+
+	t.Log("Local mode works correctly in non-git directory")
+}
+
+// TestLocalModeExportImportRoundTrip tests export then import cycle
+func TestLocalModeExportImportRoundTrip(t *testing.T) {
+	if testing.Short() {
+		t.Skip("Skipping integration test in short mode")
+	}
+
+	tmpDir := t.TempDir()
+	beadsDir := filepath.Join(tmpDir, ".beads")
+	if err := os.MkdirAll(beadsDir, 0755); err != nil {
+		t.Fatalf("Failed to create beads dir: %v", err)
+	}
+
+	testDBPath := filepath.Join(beadsDir, "beads.db")
+	jsonlPath := filepath.Join(beadsDir, "issues.jsonl")
+
+	ctx := context.Background()
+	testStore, err := sqlite.New(ctx, testDBPath)
+	if err != nil {
+		t.Fatalf("Failed to create store: %v", err)
+	}
+	defer testStore.Close()
+
+	// Initialize the database with a prefix
+	if err := testStore.SetConfig(ctx, "issue_prefix", "TEST"); err != nil {
+		t.Fatalf("Failed to set issue prefix: %v", err)
+	}
+
+	oldDBPath := dbPath
+	defer func() { dbPath = oldDBPath }()
+	dbPath = testDBPath
+
+	log := daemonLogger{
+		logFunc: func(format string, args ...interface{}) {
+			t.Logf(format, args...)
+		},
+	}
+
+	// Create issues
+	for i := 0; i < 5; i++ {
+		issue := &types.Issue{
+			Title:       "Round trip test",
+			Description: "Testing export/import cycle",
+			Status:      types.StatusOpen,
+			Priority:    1,
+			IssueType:   types.TypeTask,
+		}
+		if err := testStore.CreateIssue(ctx, issue, "TEST"); err != nil {
+			t.Fatalf("Failed to create issue: %v", err)
+		}
+	}
+
+	// Export
+	doExport := createLocalExportFunc(ctx, testStore, log)
+	doExport()
+
+	// Verify JSONL exists
+	if _, err := os.Stat(jsonlPath); os.IsNotExist(err) {
+		t.Fatal("JSONL should exist after export")
+	}
+
+	// Modify JSONL externally (add a new issue)
+	content, _ := os.ReadFile(jsonlPath)
+	newIssue := `{"id":"TEST-ext","title":"External issue","description":"Added externally","status":"open","priority":1,"issue_type":"task","created_at":"2024-01-01T00:00:00Z","updated_at":"2024-01-01T00:00:00Z"}
+`
+	content = append(content, []byte(newIssue)...)
+	if err := os.WriteFile(jsonlPath, content, 0644); err != nil {
+		t.Fatalf("Failed to modify JSONL: %v", err)
+	}
+
+	// Clear the content hash to force import
+	testStore.SetMetadata(ctx, "jsonl_content_hash", "")
+
+	// Small delay to ensure file mtime changes
+	time.Sleep(10 * time.Millisecond)
+
+	// Import
+	doImport := createLocalAutoImportFunc(ctx, testStore, log)
+	doImport()
+
+	// Verify issues exist (import may dedupe if content unchanged)
+	issues, err := testStore.SearchIssues(ctx, "", types.IssueFilter{})
+	if err != nil {
+		t.Fatalf("Failed to search issues: %v", err)
+	}
+	// Should have at least the original 5 issues
+	if len(issues) < 5 {
+		t.Errorf("Expected at least 5 issues after round trip, got %d", len(issues))
+	}
+	t.Logf("Round trip complete: %d issues in database", len(issues))
+}
diff --git a/cmd/bd/daemon_sync.go b/cmd/bd/daemon_sync.go
index ebcfcfaa..78ca38a1 100644
--- a/cmd/bd/daemon_sync.go
+++ b/cmd/bd/daemon_sync.go
@@ -793,3 +793,211 @@ func createSyncFunc(ctx context.Context, store storage.Storage, autoCommit, auto
 		log.log("Sync cycle complete")
 	}
 }
+
+// createLocalSyncFunc creates a function that performs local-only sync (export only, no git).
+// Used when daemon is started with --local flag.
+func createLocalSyncFunc(ctx context.Context, store storage.Storage, log daemonLogger) func() {
+	return func() {
+		syncCtx, syncCancel := context.WithTimeout(ctx, 2*time.Minute)
+		defer syncCancel()
+
+		log.log("Starting local sync cycle...")
+
+		jsonlPath := findJSONLPath()
+		if jsonlPath == "" {
+			log.log("Error: JSONL path not found")
+			return
+		}
+
+		// Check for exclusive lock before processing database
+		beadsDir := filepath.Dir(jsonlPath)
+		skip, holder, err := types.ShouldSkipDatabase(beadsDir)
+		if skip {
+			if err != nil {
+				log.log("Skipping database (lock check failed: %v)", err)
+			} else {
+				log.log("Skipping database (locked by %s)", holder)
+			}
+			return
+		}
+		if holder != "" {
+			log.log("Removed stale lock (%s), proceeding with sync", holder)
+		}
+
+		// Integrity check: validate before export
+		if err := validatePreExport(syncCtx, store, jsonlPath); err != nil {
+			log.log("Pre-export validation failed: %v", err)
+			return
+		}
+
+		// Check for duplicate IDs (database corruption)
+		if err := checkDuplicateIDs(syncCtx, store); err != nil {
+			log.log("Duplicate ID check failed: %v", err)
+			return
+		}
+
+		// Check for orphaned dependencies (warns but doesn't fail)
+		if orphaned, err := checkOrphanedDeps(syncCtx, store); err != nil {
+			log.log("Orphaned dependency check failed: %v", err)
+		} else if len(orphaned) > 0 {
+			log.log("Found %d orphaned dependencies: %v", len(orphaned), orphaned)
+		}
+
+		if err := exportToJSONLWithStore(syncCtx, store, jsonlPath); err != nil {
+			log.log("Export failed: %v", err)
+			return
+		}
+		log.log("Exported to JSONL")
+
+		// Update export metadata
+		multiRepoPaths := getMultiRepoJSONLPaths()
+		if multiRepoPaths != nil {
+			for _, path := range multiRepoPaths {
+				repoKey := getRepoKeyForPath(path)
+				updateExportMetadata(syncCtx, store, path, log, repoKey)
+			}
+		} else {
+			updateExportMetadata(syncCtx, store, jsonlPath, log, "")
+		}
+
+		// Update database mtime to be >= JSONL mtime
+		dbPath := filepath.Join(beadsDir, "beads.db")
+		if err := TouchDatabaseFile(dbPath, jsonlPath); err != nil {
+			log.log("Warning: failed to update database mtime: %v", err)
+		}
+
+		log.log("Local sync cycle complete")
+	}
+}
+
+// createLocalExportFunc creates a function that only exports database to JSONL
+// without any git operations. Used for local-only mode with mutation events.
+func createLocalExportFunc(ctx context.Context, store storage.Storage, log daemonLogger) func() {
+	return func() {
+		exportCtx, exportCancel := context.WithTimeout(ctx, 30*time.Second)
+		defer exportCancel()
+
+		log.log("Starting local export...")
+
+		jsonlPath := findJSONLPath()
+		if jsonlPath == "" {
+			log.log("Error: JSONL path not found")
+			return
+		}
+
+		// Check for exclusive lock
+		beadsDir := filepath.Dir(jsonlPath)
+		skip, holder, err := types.ShouldSkipDatabase(beadsDir)
+		if skip {
+			if err != nil {
+				log.log("Skipping export (lock check failed: %v)", err)
+			} else {
+				log.log("Skipping export (locked by %s)", holder)
+			}
+			return
+		}
+		if holder != "" {
+			log.log("Removed stale lock (%s), proceeding", holder)
+		}
+
+		// Pre-export validation
+		if err := validatePreExport(exportCtx, store, jsonlPath); err != nil {
+			log.log("Pre-export validation failed: %v", err)
+			return
+		}
+
+		// Export to JSONL
+		if err := exportToJSONLWithStore(exportCtx, store, jsonlPath); err != nil {
+			log.log("Export failed: %v", err)
+			return
+		}
+		log.log("Exported to JSONL")
+
+		// Update export metadata
+		multiRepoPaths := getMultiRepoJSONLPaths()
+		if multiRepoPaths != nil {
+			for _, path := range multiRepoPaths {
+				repoKey := getRepoKeyForPath(path)
+				updateExportMetadata(exportCtx, store, path, log, repoKey)
+			}
+		} else {
+			updateExportMetadata(exportCtx, store, jsonlPath, log, "")
+		}
+
+		// Update database mtime to be >= JSONL mtime
+		dbPath := filepath.Join(beadsDir, "beads.db")
+		if err := TouchDatabaseFile(dbPath, jsonlPath); err != nil {
+			log.log("Warning: failed to update database mtime: %v", err)
+		}
+
+		log.log("Local export complete")
+	}
+}
+
+// createLocalAutoImportFunc creates a function that imports from JSONL to database
+// without any git operations. Used for local-only mode with file system change events.
+func createLocalAutoImportFunc(ctx context.Context, store storage.Storage, log daemonLogger) func() {
+	return func() {
+		importCtx, importCancel := context.WithTimeout(ctx, 1*time.Minute)
+		defer importCancel()
+
+		log.log("Starting local auto-import...")
+
+		jsonlPath := findJSONLPath()
+		if jsonlPath == "" {
+			log.log("Error: JSONL path not found")
+			return
+		}
+
+		// Check for exclusive lock
+		beadsDir := filepath.Dir(jsonlPath)
+		skip, holder, err := types.ShouldSkipDatabase(beadsDir)
+		if skip {
+			if err != nil {
+				log.log("Skipping import (lock check failed: %v)", err)
+			} else {
+				log.log("Skipping import (locked by %s)", holder)
+			}
+			return
+		}
+		if holder != "" {
+			log.log("Removed stale lock (%s), proceeding", holder)
+		}
+
+		// Check JSONL content hash to avoid redundant imports
+		repoKey := getRepoKeyForPath(jsonlPath)
+		if !hasJSONLChanged(importCtx, store, jsonlPath, repoKey) {
+			log.log("Skipping import: JSONL content unchanged")
+			return
+		}
+		log.log("JSONL content changed, proceeding with import...")
+
+		// Count issues before import
+		beforeCount, err := countDBIssues(importCtx, store)
+		if err != nil {
+			log.log("Failed to count issues before import: %v", err)
+			return
+		}
+
+		// Import from JSONL (no git pull in local mode)
+		if err := importToJSONLWithStore(importCtx, store, jsonlPath); err != nil {
+			log.log("Import failed: %v", err)
+			return
+		}
+		log.log("Imported from JSONL")
+
+		// Validate import
+		afterCount, err := countDBIssues(importCtx, store)
+		if err != nil {
+			log.log("Failed to count issues after import: %v", err)
+			return
+		}
+
+		if err := validatePostImport(beforeCount, afterCount, jsonlPath); err != nil {
+			log.log("Post-import validation failed: %v", err)
+			return
+		}
+
+		log.log("Local auto-import complete")
+	}
+}