diff --git a/src/cli/setup.ts b/src/cli/setup.ts
new file mode 100644
index 0000000..496974a
--- /dev/null
+++ b/src/cli/setup.ts
@@ -0,0 +1,70 @@
+import type { Command } from 'commander';
+import { existsSync, mkdirSync, writeFileSync, readFileSync } from 'fs';
+import { dirname } from 'path';
+import { createInterface } from 'readline/promises';
+import { parse } from 'yaml';
+import { getConfigPath } from './shared.js';
+import { createPrompter } from './setup/prompts.js';
+import { ConfigBuilder } from './setup/config.js';
+import { runFirstRunWizard, runMenu } from './setup/orchestrator.js';
+
+export async function runSetup(configPath: string): Promise<void> {
+  const rl = createInterface({ input: process.stdin, output: process.stdout });
+  const p = createPrompter(rl);
+
+  try {
+    if (existsSync(configPath)) {
+      // Existing config → menu mode
+      const raw = readFileSync(configPath, 'utf-8');
+      const parsed = parse(raw) ?? {};
+      const builder = ConfigBuilder.fromObject(parsed);
+      await runMenu(p, builder);
+      saveConfig(configPath, builder, p);
+    } else {
+      // No config → first-run wizard
+      const builder = await runFirstRunWizard(p);
+      saveConfig(configPath, builder, p);
+
+      const shouldStart = await p.confirm('Start Flynn now?', true);
+      if (shouldStart) {
+        rl.close();
+        const { startDaemon } = await import('../daemon/index.js');
+        const { loadConfig } = await import('../config/index.js');
+        const config = loadConfig(configPath);
+        const daemon = await startDaemon(config);
+        await new Promise<void>(resolve => daemon.lifecycle.onShutdown(async () => resolve()));
+        return;
+      }
+
+      const wantMore = await p.confirm('Configure more features?', false);
+      if (wantMore) {
+        const raw = readFileSync(configPath, 'utf-8');
+        const parsed = parse(raw) ?? {};
+        const menuBuilder = ConfigBuilder.fromObject(parsed);
+        await runMenu(p, menuBuilder);
+        saveConfig(configPath, menuBuilder, p);
+      }
+    }
+  } finally {
+    rl.close();
+  }
+}
+
+function saveConfig(configPath: string, builder: ConfigBuilder, p: { println(msg?: string): void }): void {
+  const dir = dirname(configPath);
+  mkdirSync(dir, { recursive: true });
+  writeFileSync(configPath, builder.toYaml(), 'utf-8');
+  p.println();
+  p.println(`✓ Config saved to ${configPath}`);
+}
+
+export function registerSetupCommand(program: Command): void {
+  program
+    .command('setup')
+    .description('Interactive setup wizard')
+    .option('-c, --config <path>', 'Config file path')
+    .action(async (opts: { config?: string }) => {
+      const configPath = opts.config ?? getConfigPath();
+      await runSetup(configPath);
+    });
+}
diff --git a/src/cli/setup/orchestrator.test.ts b/src/cli/setup/orchestrator.test.ts
new file mode 100644
index 0000000..66acf0b
--- /dev/null
+++ b/src/cli/setup/orchestrator.test.ts
@@ -0,0 +1,32 @@
+import { describe, it, expect } from 'vitest';
+import { createInterface } from 'readline/promises';
+import { Readable, Writable } from 'stream';
+import { createPrompter } from './prompts.js';
+import { runMenu } from './orchestrator.js';
+import { ConfigBuilder } from './config.js';
+
+function mockReadline(inputs: string[]) {
+  let idx = 0;
+  const input = new Readable({
+    read() {
+      if (idx < inputs.length) {
+        this.push(inputs[idx++] + '\n');
+      } else {
+        this.push(null);
+      }
+    },
+  });
+  const output = new Writable({ write(_, __, cb) { cb(); } });
+  return createInterface({ input, output });
+}
+
+describe('runMenu', () => {
+  it('exits immediately on 0', async () => {
+    const rl = mockReadline(['0']);
+    const p = createPrompter(rl);
+    const builder = new ConfigBuilder();
+    builder.setProvider('default', { provider: 'anthropic', model: 'test', api_key: 'k' });
+    await runMenu(p, builder);
+    // Should return without error
+  });
+});
diff --git a/src/cli/setup/orchestrator.ts b/src/cli/setup/orchestrator.ts
new file mode 100644
index 0000000..eb06724
--- /dev/null
+++ b/src/cli/setup/orchestrator.ts
@@ -0,0 +1,73 @@
+import type { Prompter } from './prompts.js';
+import type { ConfigBuilder } from './config.js';
+import { renderSummary } from './summary.js';
+import { setupProviders } from './providers.js';
+import { setupChannels } from './channels.js';
+import { setupMemory } from './memory.js';
+import { setupAutomation } from './automation.js';
+import { setupSecurity } from './security.js';
+import { setupGateway } from './gateway.js';
+
+const MENU_OPTIONS = [
+  { label: 'Model Providers', value: 'providers' },
+  { label: 'Channels', value: 'channels' },
+  { label: 'Memory', value: 'memory' },
+  { label: 'Automation', value: 'automation' },
+  { label: 'Security', value: 'security' },
+  { label: 'Gateway', value: 'gateway' },
+];
+
+const SECTION_HANDLERS: Record<string, (p: Prompter, b: ConfigBuilder) => Promise<void>> = {
+  providers: setupProviders,
+  channels: setupChannels,
+  memory: setupMemory,
+  automation: setupAutomation,
+  security: setupSecurity,
+  gateway: setupGateway,
+};
+
+export async function runMenu(p: Prompter, builder: ConfigBuilder): Promise<void> {
+  while (true) {
+    p.println();
+    p.println('Flynn Setup — Current Configuration');
+    p.println(renderSummary(builder.build()));
+    p.println();
+    p.println('What would you like to configure?');
+    for (let i = 0; i < MENU_OPTIONS.length; i++) {
+      p.println(`  ${i + 1}. ${MENU_OPTIONS[i].label}`);
+    }
+    p.println('  0. Done — save and exit');
+
+    const answer = await p.ask('>', '0');
+    const idx = parseInt(answer, 10);
+
+    if (idx === 0 || isNaN(idx)) break;
+    if (idx >= 1 && idx <= MENU_OPTIONS.length) {
+      const section = MENU_OPTIONS[idx - 1].value;
+      const handler = SECTION_HANDLERS[section];
+      if (handler) {
+        p.println();
+        await handler(p, builder);
+      }
+    }
+  }
+}
+
+export async function runFirstRunWizard(p: Prompter): Promise<ConfigBuilder> {
+  const { ConfigBuilder } = await import('./config.js');
+
+  p.println();
+  p.println("Let's get Flynn running. This takes about 2 minutes.");
+  p.println();
+
+  const builder = new ConfigBuilder();
+
+  // Step 1: Model provider
+  await setupProviders(p, builder);
+
+  // Step 2: Channels
+  p.println();
+  await setupChannels(p, builder);
+
+  return builder;
+}