diff --git a/src/backends/native/agent.ts b/src/backends/native/agent.ts
index b5d6708..6a89e4a 100644
--- a/src/backends/native/agent.ts
+++ b/src/backends/native/agent.ts
@@ -79,6 +79,10 @@ export class NativeAgent {
 
     const response = await this.chatWithRouter(request);
 
+    if (response.fallback) {
+      console.warn(`[Flynn] ${response.fallbackReason}`);
+    }
+
     const assistantMsg: Message = { role: 'assistant', content: response.content };
     this.addToHistory(assistantMsg);
 
@@ -106,6 +110,10 @@ export class NativeAgent {
 
       const response = await this.chatWithRouter(request);
 
+      if (response.fallback) {
+        console.warn(`[Flynn] ${response.fallbackReason}`);
+      }
+
       // If the model didn't request tool use, we're done
       if (response.stopReason !== 'tool_use' || !response.toolCalls?.length) {
         const assistantMsg: Message = { role: 'assistant', content: response.content };
diff --git a/src/cli/doctor.test.ts b/src/cli/doctor.test.ts
new file mode 100644
index 0000000..fc9d88b
--- /dev/null
+++ b/src/cli/doctor.test.ts
@@ -0,0 +1,125 @@
+import { describe, it, expect, afterEach } from 'vitest';
+import { runChecks, type CheckResult, type DoctorContext } from './doctor.js';
+import { writeFileSync, mkdirSync, rmSync } from 'fs';
+import { join } from 'path';
+import { tmpdir } from 'os';
+
+describe('doctor checks', () => {
+  const testDir = join(tmpdir(), 'flynn-test-doctor');
+
+  afterEach(() => {
+    try { rmSync(testDir, { recursive: true }); } catch {}
+  });
+
+  it('reports PASS when config file exists and is valid', async () => {
+    mkdirSync(testDir, { recursive: true });
+    const configPath = join(testDir, 'config.yaml');
+    writeFileSync(configPath, `
+telegram:
+  bot_token: "test-token"
+  allowed_chat_ids: [123]
+models:
+  default:
+    provider: anthropic
+    model: claude-sonnet
+`);
+
+    const ctx: DoctorContext = { configPath, dataDir: testDir };
+    const results = await runChecks(ctx);
+
+    const configExists = results.find(r => r.label.includes('Config file'));
+    expect(configExists?.status).toBe('pass');
+
+    const configParses = results.find(r => r.label.includes('parses'));
+    expect(configParses?.status).toBe('pass');
+
+    const configValidates = results.find(r => r.label.includes('validates'));
+    expect(configValidates?.status).toBe('pass');
+  });
+
+  it('reports FAIL when config file does not exist', async () => {
+    const ctx: DoctorContext = { configPath: '/nonexistent/config.yaml', dataDir: testDir };
+    const results = await runChecks(ctx);
+
+    const configExists = results.find(r => r.label.includes('Config file'));
+    expect(configExists?.status).toBe('fail');
+  });
+
+  it('reports FAIL on invalid YAML', async () => {
+    mkdirSync(testDir, { recursive: true });
+    const configPath = join(testDir, 'bad.yaml');
+    writeFileSync(configPath, '{{{{bad yaml');
+
+    const ctx: DoctorContext = { configPath, dataDir: testDir };
+    const results = await runChecks(ctx);
+
+    const configParses = results.find(r => r.label.includes('parses'));
+    expect(configParses?.status).toBe('fail');
+  });
+
+  it('reports FAIL on schema validation failure', async () => {
+    mkdirSync(testDir, { recursive: true });
+    const configPath = join(testDir, 'invalid.yaml');
+    writeFileSync(configPath, `
+telegram:
+  bot_token: ""
+`);
+
+    const ctx: DoctorContext = { configPath, dataDir: testDir };
+    const results = await runChecks(ctx);
+
+    const configValidates = results.find(r => r.label.includes('validates'));
+    expect(configValidates?.status).toBe('fail');
+  });
+
+  it('reports PASS for writable data directory', async () => {
+    mkdirSync(testDir, { recursive: true });
+    const configPath = join(testDir, 'config.yaml');
+    writeFileSync(configPath, `
+telegram:
+  bot_token: "test-token"
+  allowed_chat_ids: [123]
+models:
+  default:
+    provider: anthropic
+    model: claude-sonnet
+`);
+
+    const ctx: DoctorContext = { configPath, dataDir: testDir };
+    const results = await runChecks(ctx);
+
+    const dataDir = results.find(r => r.label.includes('Data directory'));
+    expect(dataDir?.status).toBe('pass');
+  });
+
+  it('reports PASS for accessible session DB', async () => {
+    mkdirSync(testDir, { recursive: true });
+    const configPath = join(testDir, 'config.yaml');
+    writeFileSync(configPath, `
+telegram:
+  bot_token: "test-token"
+  allowed_chat_ids: [123]
+models:
+  default:
+    provider: anthropic
+    model: claude-sonnet
+`);
+
+    const ctx: DoctorContext = { configPath, dataDir: testDir };
+    const results = await runChecks(ctx);
+
+    const sessionDb = results.find(r => r.label.includes('Session DB'));
+    expect(sessionDb?.status).toBe('pass');
+  });
+
+  it('skips downstream checks when config is invalid', async () => {
+    const ctx: DoctorContext = { configPath: '/nonexistent/config.yaml', dataDir: testDir };
+    const results = await runChecks(ctx);
+
+    const modelCheck = results.find(r => r.label.includes('Model connectivity'));
+    expect(modelCheck?.status).toBe('skip');
+
+    const telegramCheck = results.find(r => r.label.includes('Telegram'));
+    expect(telegramCheck?.status).toBe('skip');
+  });
+});
diff --git a/src/cli/doctor.ts b/src/cli/doctor.ts
index ae3433b..45a45a1 100644
--- a/src/cli/doctor.ts
+++ b/src/cli/doctor.ts
@@ -116,12 +116,30 @@ const checkModelConnectivity: Check = async (ctx) => {
   if (!ctx.config) {
     return { status: 'skip', label: 'Model connectivity', detail: '(config invalid)' };
   }
-  // Skip actual API call in doctor — just verify config looks complete
-  const model = ctx.config.models.default;
+  const models = ctx.config.models;
+  const model = models.default;
   if (!model.model) {
     return { status: 'fail', label: 'Model connectivity', detail: 'no default model configured' };
   }
-  return { status: 'pass', label: 'Model connectivity', detail: `(${model.provider}: ${model.model})` };
+
+  // Check if API key is present for providers that need one
+  const needsKey = ['anthropic', 'openai', 'gemini'];
+  if (needsKey.includes(model.provider) && !model.api_key && !model.auth_token) {
+    const envVar = model.provider === 'anthropic' ? 'ANTHROPIC_API_KEY' : model.provider === 'openai' ? 'OPENAI_API_KEY' : undefined;
+    const hasEnv = envVar && process.env[envVar];
+    if (!hasEnv) {
+      return { status: 'warn', label: 'Model connectivity', detail: `${model.provider}/${model.model} — no API key or auth token found` };
+    }
+  }
+
+  // Build a summary of the model stack
+  const parts = [`default: ${model.provider}/${model.model}`];
+  if (models.fast) parts.push(`fast: ${models.fast.provider}/${models.fast.model}`);
+  if (models.complex) parts.push(`complex: ${models.complex.provider}/${models.complex.model}`);
+  if (models.local) parts.push(`local: ${models.local.provider}/${models.local.model}`);
+  parts.push(`fallback: [${models.fallback_chain.join(', ')}]`);
+
+  return { status: 'pass', label: 'Model connectivity', detail: parts.join(', ') };
 };
 
 const checkTelegram: Check = async (ctx) => {
diff --git a/src/daemon/clientFactory.test.ts b/src/daemon/clientFactory.test.ts
new file mode 100644
index 0000000..640ef7f
--- /dev/null
+++ b/src/daemon/clientFactory.test.ts
@@ -0,0 +1,78 @@
+import { describe, it, expect } from 'vitest';
+import { createClientFromConfig } from './index.js';
+import { AnthropicClient } from '../models/anthropic.js';
+import { OpenAIClient } from '../models/openai.js';
+import { OllamaClient } from '../models/local/ollama.js';
+import { LlamaCppClient } from '../models/local/llamacpp.js';
+
+describe('createClientFromConfig', () => {
+  it('creates AnthropicClient for anthropic provider', () => {
+    const client = createClientFromConfig({
+      provider: 'anthropic',
+      model: 'claude-sonnet-4-5-20250514',
+      api_key: 'sk-ant-test',
+    });
+    expect(client).toBeInstanceOf(AnthropicClient);
+  });
+
+  it('creates OpenAIClient for openai provider', () => {
+    const client = createClientFromConfig({
+      provider: 'openai',
+      model: 'gpt-4o',
+      api_key: 'sk-test',
+    });
+    expect(client).toBeInstanceOf(OpenAIClient);
+  });
+
+  it('creates OllamaClient for ollama provider', () => {
+    const client = createClientFromConfig({
+      provider: 'ollama',
+      model: 'llama3.2:1b',
+      endpoint: 'http://localhost:11434',
+    });
+    expect(client).toBeInstanceOf(OllamaClient);
+  });
+
+  it('creates OllamaClient with num_gpu option', () => {
+    const client = createClientFromConfig({
+      provider: 'ollama',
+      model: 'llama3.2:1b',
+      num_gpu: 0,
+    });
+    expect(client).toBeInstanceOf(OllamaClient);
+  });
+
+  it('creates LlamaCppClient for llamacpp provider', () => {
+    const client = createClientFromConfig({
+      provider: 'llamacpp',
+      model: 'ministral-reasoning',
+      endpoint: 'http://localhost:8080',
+    });
+    expect(client).toBeInstanceOf(LlamaCppClient);
+  });
+
+  it('defaults llamacpp endpoint to localhost:8080', () => {
+    const client = createClientFromConfig({
+      provider: 'llamacpp',
+      model: 'test-model',
+    });
+    expect(client).toBeInstanceOf(LlamaCppClient);
+  });
+
+  it('creates OpenAI-compatible client for gemini provider (with warning)', () => {
+    const client = createClientFromConfig({
+      provider: 'gemini',
+      model: 'gemini-2.5-pro',
+      api_key: 'test-key',
+    });
+    // Gemini falls back to OpenAI-compatible client
+    expect(client).toBeInstanceOf(OpenAIClient);
+  });
+
+  it('throws for unknown provider', () => {
+    expect(() => createClientFromConfig({
+      provider: 'unknown' as 'anthropic',
+      model: 'test',
+    })).toThrow('Unknown model provider: unknown');
+  });
+});
diff --git a/src/daemon/index.ts b/src/daemon/index.ts
index e46e7e9..2b88141 100644
--- a/src/daemon/index.ts
+++ b/src/daemon/index.ts
@@ -1,6 +1,7 @@
 import { Lifecycle } from './lifecycle.js';
-import type { Config } from '../config/index.js';
+import type { Config, ModelConfig } from '../config/index.js';
 import { AnthropicClient, OpenAIClient, OllamaClient, LlamaCppClient, ModelRouter } from '../models/index.js';
+import type { ModelClient } from '../models/index.js';
 import { NativeAgent } from '../backends/index.js';
 import { SessionStore, SessionManager } from '../session/index.js';
 import { HookEngine } from '../hooks/index.js';
@@ -48,60 +49,80 @@ function loadSystemPrompt(): string {
   return 'You are Flynn, a helpful personal AI assistant. Be direct, concise, and helpful. Use markdown when it improves readability.';
 }
 
+/**
+ * Create a ModelClient from a provider config entry.
+ * Dispatches on the `provider` field so all tiers and fallback entries
+ * use the correct client implementation.
+ */
+export function createClientFromConfig(cfg: ModelConfig): ModelClient {
+  switch (cfg.provider) {
+    case 'anthropic':
+      return new AnthropicClient({
+        model: cfg.model,
+        apiKey: cfg.api_key,
+        authToken: cfg.auth_token,
+      });
+    case 'openai':
+      return new OpenAIClient({
+        model: cfg.model,
+        apiKey: cfg.api_key,
+      });
+    case 'ollama':
+      return new OllamaClient({
+        model: cfg.model,
+        host: cfg.endpoint,
+        numGpu: cfg.num_gpu,
+      });
+    case 'llamacpp':
+      return new LlamaCppClient({
+        endpoint: cfg.endpoint ?? 'http://localhost:8080',
+        model: cfg.model,
+        authToken: cfg.auth_token,
+      });
+    case 'gemini':
+      // Gemini support not yet implemented — fall back to OpenAI-compatible client
+      console.warn(`Gemini provider not yet implemented for model "${cfg.model}", using OpenAI-compatible client`);
+      return new OpenAIClient({
+        model: cfg.model,
+        apiKey: cfg.api_key,
+      });
+    default:
+      throw new Error(`Unknown model provider: ${(cfg as Record<string, unknown>).provider}`);
+  }
+}
+
 function createModelRouter(config: Config): ModelRouter {
   const models = config.models;
 
-  const defaultClient = new AnthropicClient({
-    model: models.default.model,
-    apiKey: models.default.api_key,
-    authToken: models.default.auth_token,
-  });
+  const defaultClient = createClientFromConfig(models.default);
 
-  let fastClient;
-  let complexClient;
-  let localClient;
+  const fastClient = models.fast ? createClientFromConfig(models.fast) : undefined;
+  const complexClient = models.complex ? createClientFromConfig(models.complex) : undefined;
+  const localClient = models.local ? createClientFromConfig(models.local) : undefined;
 
-  if (models.fast) {
-    fastClient = new AnthropicClient({
-      model: models.fast.model,
-      apiKey: models.fast.api_key,
-      authToken: models.fast.auth_token,
-    });
-  }
-
-  if (models.complex) {
-    complexClient = new AnthropicClient({
-      model: models.complex.model,
-      apiKey: models.complex.api_key,
-      authToken: models.complex.auth_token,
-    });
-  }
-
-  if (models.local) {
-    if (models.local.provider === 'ollama') {
-      localClient = new OllamaClient({
-        model: models.local.model,
-        host: models.local.endpoint,
-        numGpu: models.local.num_gpu,
-      });
-    } else if (models.local.provider === 'llamacpp') {
-      localClient = new LlamaCppClient({
-        endpoint: models.local.endpoint ?? 'http://localhost:8080',
-        model: models.local.model,
-        authToken: models.local.auth_token,
-      });
-    }
-  }
-
-  const fallbackChain = [];
+  // Build fallback chain — each entry references a tier name or 'local'
+  const fallbackChain: ModelClient[] = [];
   for (const providerName of models.fallback_chain) {
-    if (providerName === 'openai') {
-      fallbackChain.push(new OpenAIClient({ model: 'gpt-4o' }));
-    } else if (providerName === 'local' && localClient) {
+    if (providerName === 'local' && localClient) {
       fallbackChain.push(localClient);
+    } else if (providerName === 'default') {
+      // Allows re-trying the default provider in the chain
+      fallbackChain.push(defaultClient);
+    } else if (providerName === 'fast' && fastClient) {
+      fallbackChain.push(fastClient);
+    } else if (providerName === 'complex' && complexClient) {
+      fallbackChain.push(complexClient);
+    } else if (models.local_providers?.[providerName]) {
+      // Named provider from local_providers map
+      fallbackChain.push(createClientFromConfig(models.local_providers[providerName]));
+    } else {
+      console.warn(`Fallback chain entry "${providerName}" not found — skipping`);
     }
   }
 
+  console.log(`Model router: default=${models.default.provider}/${models.default.model}, ` +
+    `fallback=[${models.fallback_chain.join(', ')}]`);
+
   return new ModelRouter({
     default: defaultClient,
     fast: fastClient,
diff --git a/src/frontends/tui/minimal.ts b/src/frontends/tui/minimal.ts
index 791142e..57f58ce 100644
--- a/src/frontends/tui/minimal.ts
+++ b/src/frontends/tui/minimal.ts
@@ -315,6 +315,9 @@ export class MinimalTui {
             process.stdout.write(event.content);
             fullContent += event.content;
           }
+          if (event.type === 'fallback_warning' && event.fallbackReason) {
+            console.warn(`\n⚠ ${event.fallbackReason}`);
+          }
           if (event.type === 'done' && event.usage) {
             this.totalUsage.inputTokens += event.usage.inputTokens;
             this.totalUsage.outputTokens += event.usage.outputTokens;
diff --git a/src/models/router.test.ts b/src/models/router.test.ts
index b52b241..d6697c1 100644
--- a/src/models/router.test.ts
+++ b/src/models/router.test.ts
@@ -41,6 +41,8 @@ describe('ModelRouter', () => {
     const response = await router.chat({ messages: [{ role: 'user', content: 'Hi' }] });
 
     expect(response.content).toBe('Response from fallback');
+    expect(response.fallback).toBe(true);
+    expect(response.fallbackReason).toMatch(/Primary model failed/);
     expect(failingClient.chat).toHaveBeenCalled();
     expect(fallbackClient.chat).toHaveBeenCalled();
   });
@@ -132,13 +134,18 @@ describe('ModelRouter streaming', () => {
     });
 
     const chunks: string[] = [];
+    let fallbackWarning: string | undefined;
     for await (const event of router.chatStream({ messages: [] })) {
       if (event.type === 'content' && event.content) {
         chunks.push(event.content);
       }
+      if (event.type === 'fallback_warning') {
+        fallbackWarning = event.fallbackReason;
+      }
     }
 
     expect(chunks).toEqual(['Fallback']);
+    expect(fallbackWarning).toMatch(/Primary model failed/);
   });
 });
 
diff --git a/src/models/router.ts b/src/models/router.ts
index 87e94b1..3a090ca 100644
--- a/src/models/router.ts
+++ b/src/models/router.ts
@@ -58,13 +58,16 @@ export class ModelRouter implements ModelClient {
     }
 
     // Try fallback chain
-    for (const fallbackClient of this.fallbackChain) {
+    for (let i = 0; i < this.fallbackChain.length; i++) {
+      const fallbackClient = this.fallbackChain[i];
       try {
-        console.log('Trying fallback model...');
-        return await fallbackClient.chat(request);
+        const reason = `Primary model failed (${errors[0].message}), using fallback #${i + 1}`;
+        console.warn(reason);
+        const response = await fallbackClient.chat(request);
+        return { ...response, fallback: true, fallbackReason: reason };
       } catch (error) {
         errors.push(error instanceof Error ? error : new Error(String(error)));
-        console.warn(`Fallback model failed: ${errors[errors.length - 1].message}`);
+        console.warn(`Fallback model #${i + 1} failed: ${errors[errors.length - 1].message}`);
       }
     }
 
@@ -74,30 +77,39 @@ export class ModelRouter implements ModelClient {
   async *chatStream(request: ChatRequest, tier?: ModelTier): AsyncIterable<ChatStreamEvent> {
     const useTier = tier ?? this.currentTier;
     const primaryClient = this.clients.get(useTier) ?? this.defaultClient;
+    let primaryError: string | undefined;
 
     if (primaryClient.chatStream) {
       let hasError = false;
       for await (const event of primaryClient.chatStream(request)) {
         if (event.type === 'error') {
           hasError = true;
-          console.warn(`Primary stream failed: ${event.error?.message}`);
+          primaryError = event.error?.message ?? 'Unknown error';
+          console.warn(`Primary stream failed: ${primaryError}`);
           break;
         }
         yield event;
       }
 
       if (!hasError) return;
+    } else {
+      primaryError = 'Primary client does not support streaming';
     }
 
     // Try fallback chain
-    for (const fallbackClient of this.fallbackChain) {
+    for (let i = 0; i < this.fallbackChain.length; i++) {
+      const fallbackClient = this.fallbackChain[i];
       if (!fallbackClient.chatStream) continue;
 
+      const reason = `Primary model failed (${primaryError}), using fallback #${i + 1}`;
+      console.warn(reason);
+      yield { type: 'fallback_warning', fallbackReason: reason };
+
       let hasError = false;
       for await (const event of fallbackClient.chatStream(request)) {
         if (event.type === 'error') {
           hasError = true;
-          console.warn(`Fallback stream failed: ${event.error?.message}`);
+          console.warn(`Fallback stream #${i + 1} failed: ${event.error?.message}`);
           break;
         }
         yield event;
diff --git a/src/models/types.ts b/src/models/types.ts
index daf640e..9fbae44 100644
--- a/src/models/types.ts
+++ b/src/models/types.ts
@@ -55,6 +55,10 @@ export interface ChatResponse {
   stopReason: 'end_turn' | 'max_tokens' | 'stop_sequence' | 'tool_use' | string;
   usage: TokenUsage;
   toolCalls?: ModelToolCall[];
+  /** Set when the response came from a fallback model, not the primary. */
+  fallback?: boolean;
+  /** Human-readable reason for the fallback. */
+  fallbackReason?: string;
 }
 
 export interface TokenUsage {
@@ -63,11 +67,13 @@ export interface TokenUsage {
 }
 
 export interface ChatStreamEvent {
-  type: 'content' | 'done' | 'error' | 'tool_use';
+  type: 'content' | 'done' | 'error' | 'tool_use' | 'fallback_warning';
   content?: string;
   usage?: TokenUsage;
   error?: Error;
   toolCall?: ModelToolCall;
+  /** Human-readable message when primary model failed and fallback is being used. */
+  fallbackReason?: string;
 }
 
 export interface StreamingModelClient {