diff --git a/internal/cmd/install.go b/internal/cmd/install.go
index 61c25c7d..6365cbca 100644
--- a/internal/cmd/install.go
+++ b/internal/cmd/install.go
@@ -188,6 +188,15 @@ func runInstall(cmd *cobra.Command, args []string) error {
 		fmt.Printf("   ✓ Created .claude/settings.json\n")
 	}
 
+	// Initialize git BEFORE beads so that bd can compute repository fingerprint.
+	// The fingerprint is required for the daemon to start properly.
+	if installGit || installGitHub != "" {
+		fmt.Println()
+		if err := InitGitForHarness(absPath, installGitHub, !installPublic); err != nil {
+			return fmt.Errorf("git initialization failed: %w", err)
+		}
+	}
+
 	// Initialize town-level beads database (optional)
 	// Town beads (hq- prefix) stores mayor mail, cross-rig coordination, and handoffs.
 	// Rig beads are separate and have their own prefixes.
@@ -234,14 +243,6 @@ func runInstall(cmd *cobra.Command, args []string) error {
 		fmt.Printf("   ✓ Created .claude/commands/ (slash commands for all agents)\n")
 	}
 
-	// Initialize git if requested (--git or --github implies --git)
-	if installGit || installGitHub != "" {
-		fmt.Println()
-		if err := InitGitForHarness(absPath, installGitHub, !installPublic); err != nil {
-			return fmt.Errorf("git initialization failed: %w", err)
-		}
-	}
-
 	fmt.Printf("\n%s HQ created successfully!\n", style.Bold.Render("✓"))
 	fmt.Println()
 	fmt.Println("Next steps:")