diff --git a/.junie/memory/errors.md b/.junie/memory/errors.md
new file mode 100644
index 0000000..e69de29
diff --git a/.junie/memory/feedback.md b/.junie/memory/feedback.md
new file mode 100644
index 0000000..e69de29
diff --git a/.junie/memory/language.json b/.junie/memory/language.json
new file mode 100644
index 0000000..0637a08
--- /dev/null
+++ b/.junie/memory/language.json
@@ -0,0 +1 @@
+[]
\ No newline at end of file
diff --git a/.junie/memory/memory.version b/.junie/memory/memory.version
new file mode 100644
index 0000000..f398a20
--- /dev/null
+++ b/.junie/memory/memory.version
@@ -0,0 +1 @@
+3.0
\ No newline at end of file
diff --git a/.junie/memory/tasks.md b/.junie/memory/tasks.md
new file mode 100644
index 0000000..e69de29
diff --git a/hosts/node1/services.yaml b/hosts/node1/services.yaml
new file mode 100644
index 0000000..6854596
--- /dev/null
+++ b/hosts/node1/services.yaml
@@ -0,0 +1,2 @@
+services:
+  - name: homeassistant
diff --git a/hosts/node2/services.yaml b/hosts/node2/services.yaml
new file mode 100644
index 0000000..fa65cbe
--- /dev/null
+++ b/hosts/node2/services.yaml
@@ -0,0 +1,2 @@
+services:
+  - name: webapp
diff --git a/scripts/supervisor/supervisor.py b/scripts/supervisor/supervisor.py
new file mode 100644
index 0000000..e58027b
--- /dev/null
+++ b/scripts/supervisor/supervisor.py
@@ -0,0 +1,292 @@
+#!/usr/bin/env python3
+import os
+import sys
+import yaml
+import json
+import time
+import glob
+from pathlib import Path
+
+# Configuration
+WORLD_STATE_PATH = Path(os.getenv("HOMELAB_WORLD_ROOT", "/opt/homelab/world"))
+INVENTORY_PATH = Path("hosts")
+EVENT_LOG = Path("/tmp/agent-events.log")
+CHECKPOINT_FILE = Path("/tmp/supervisor-checkpoint.json")
+
+# Reconcile event types
+RECONCILE_REQUIRED = "reconcile_required"
+RECONCILE_RECOMMENDED = "reconcile_recommended"
+RECONCILE_BLOCKED = "reconcile_blocked"
+
+# Runtime summary states
+STATE_NOMINAL = "nominal"
+STATE_DEGRADED = "degraded"
+STATE_UNSTABLE = "unstable"
+STATE_RECONCILING = "reconciling"
+
+def emit_event(event_type, message, details=None):
+    """Emit reconciliation events using existing event system (append-only file)."""
+    event = {
+        "type": event_type,
+        "message": message,
+        "timestamp": time.time(),
+        "details": details or {}
+    }
+    line = json.dumps(event)
+    print(line)
+    try:
+        # Append-only semantics
+        with open(EVENT_LOG, "a", encoding="utf-8") as f:
+            f.write(line + "\n")
+            f.flush()
+    except Exception as e:
+        print(f"Error writing to event log: {e}", file=sys.stderr)
+
+def load_desired_state():
+    """Load desired state from hosts/*/services.yaml."""
+    desired = {"services": [], "nodes": []}
+    if not INVENTORY_PATH.exists():
+        return desired
+
+    # Inventory model: hosts/{node_name}/services.yaml
+    for yaml_file in glob.glob(str(INVENTORY_PATH / "*" / "services.yaml")):
+        try:
+            with open(yaml_file, "r") as f:
+                data = yaml.safe_load(f)
+                if data and "services" in data:
+                    node_name = Path(yaml_file).parent.name
+                    for svc in data["services"]:
+                        if isinstance(svc, str):
+                            svc = {"name": svc}
+                        svc["node"] = node_name
+                        desired["services"].append(svc)
+                    if node_name not in desired["nodes"]:
+                        desired["nodes"].append(node_name)
+        except Exception as e:
+            print(f"Error loading {yaml_file}: {e}", file=sys.stderr)
+    return desired
+
+def load_world_state():
+    """Load current world state from /opt/homelab/world/ (filesystem-first)."""
+    world = {
+        "services": {},
+        "nodes": {},
+        "deployments": {},
+        "incidents": {}
+    }
+    
+    if not WORLD_STATE_PATH.exists():
+        return world
+
+    # Filesystem-first design: each category is a directory, each item is a JSON file
+    for category in ["services", "nodes", "deployments", "incidents"]:
+        cat_path = WORLD_STATE_PATH / category
+        if cat_path.exists() and cat_path.is_dir():
+            for json_file in cat_path.glob("*.json"):
+                try:
+                    with open(json_file, "r") as f:
+                        world[category][json_file.stem] = json.load(f)
+                except Exception as e:
+                    print(f"Error loading {json_file}: {e}", file=sys.stderr)
+    
+    return world
+
+def detect_drift(desired, world):
+    """Compare desired infrastructure state with observed runtime state."""
+    drifts = []
+    
+    # 1. Missing service & 2. Unhealthy service
+    desired_service_names = set()
+    for d_svc in desired["services"]:
+        name = d_svc["name"]
+        desired_service_names.add(name)
+        a_svc = world["services"].get(name)
+        
+        if not a_svc:
+            drifts.append({
+                "type": "missing_service",
+                "service": name,
+                "node": d_svc["node"]
+            })
+        elif a_svc.get("status") not in ("ok", "healthy", "up"):
+            drifts.append({
+                "type": "unhealthy_service",
+                "service": name,
+                "status": a_svc.get("status"),
+                "node": a_svc.get("node") or d_svc["node"]
+            })
+
+    # 4. Offline node
+    for node_name in desired["nodes"]:
+        a_node = world["nodes"].get(node_name)
+        if not a_node or a_node.get("status") not in ("online", "ok", "up"):
+             drifts.append({
+                "type": "offline_node",
+                "node": node_name,
+                "status": a_node.get("status") if a_node else "missing"
+            })
+
+    # 3. Failed deployment
+    # Check for recent failures in world/deployments
+    for d_id, d_data in world["deployments"].items():
+        if d_data.get("status") == "failed":
+            drifts.append({
+                "type": "failed_deployment",
+                "deployment_id": d_id,
+                "service": d_data.get("service")
+            })
+
+    # 5. Unresolved incidents
+    for i_id, i_data in world["incidents"].items():
+        if i_data.get("status") not in ("resolved", "closed"):
+            drifts.append({
+                "type": "unresolved_incident",
+                "incident_id": i_id,
+                "description": i_data.get("description"),
+                "status": i_data.get("status")
+            })
+
+    return drifts
+
+def recommendation_engine(drifts, world):
+    """Recommendation mode only: emit proposed actions without mutation."""
+    recommendations = []
+    for drift in drifts:
+        if drift["type"] == "unhealthy_service":
+            recommendations.append({
+                "drift": drift,
+                "action": "redeploy",
+                "message": f"Service {drift['service']} is unhealthy. Recommend redeploy.",
+                "type": RECONCILE_REQUIRED
+            })
+        elif drift["type"] == "failed_deployment":
+            service = drift["service"]
+            # Recommendation: repeated deployment failures -> recommend diagnostics
+            failures = [d for d in world["deployments"].values() if d.get("service") == service and d.get("status") == "failed"]
+            if len(failures) > 2:
+                recommendations.append({
+                    "drift": drift,
+                    "action": "diagnostics",
+                    "message": f"Repeated deployment failures for {service}. Recommend diagnostics.",
+                    "type": RECONCILE_BLOCKED
+                })
+            else:
+                recommendations.append({
+                    "drift": drift,
+                    "action": "redeploy",
+                    "message": f"Deployment failed for {service}. Recommend retry.",
+                    "type": RECONCILE_REQUIRED
+                })
+        elif drift["type"] == "offline_node":
+            # Recommendation: node offline -> recommend failover review
+            recommendations.append({
+                "drift": drift,
+                "action": "failover_review",
+                "message": f"Node {drift['node']} is offline. Recommend failover review.",
+                "type": RECONCILE_REQUIRED
+            })
+        elif drift["type"] == "missing_service":
+            # Recommendation: dependency unavailable -> recommend delayed deployment
+            # Mock dependency check: if a service is 'webapp' and 'database' is not healthy
+            dependencies_met = True
+            if drift["service"] == "webapp":
+                db_svc = world["services"].get("database")
+                if not db_svc or db_svc.get("status") not in ("ok", "healthy", "up"):
+                    dependencies_met = False
+            
+            if not dependencies_met:
+                recommendations.append({
+                    "drift": drift,
+                    "action": "delayed_deployment",
+                    "message": f"Dependency unavailable for {drift['service']}. Recommend delayed deployment.",
+                    "type": RECONCILE_RECOMMENDED
+                })
+            else:
+                recommendations.append({
+                    "drift": drift,
+                    "action": "deploy",
+                    "message": f"Service {drift['service']} is missing. Recommend deployment.",
+                    "type": RECONCILE_REQUIRED
+                })
+        elif drift["type"] == "unresolved_incident":
+            recommendations.append({
+                "drift": drift,
+                "action": "review",
+                "message": f"Unresolved incident: {drift['description']}. Recommend review.",
+                "type": RECONCILE_RECOMMENDED
+            })
+    return recommendations
+
+def save_checkpoint(state):
+    """Checkpoint support for idempotent operation."""
+    try:
+        with open(CHECKPOINT_FILE, "w") as f:
+            json.dump({
+                "last_run": time.time(),
+                "state": state
+            }, f)
+    except Exception as e:
+         print(f"Error saving checkpoint: {e}", file=sys.stderr)
+
+def load_checkpoint():
+    """Load last run checkpoint."""
+    if CHECKPOINT_FILE.exists():
+        try:
+            with open(CHECKPOINT_FILE, "r") as f:
+                return json.load(f)
+        except Exception as e:
+            print(f"Error loading checkpoint: {e}", file=sys.stderr)
+    return None
+
+def main():
+    print(f"--- Supervisor Run: {time.ctime()} ---")
+    
+    checkpoint = load_checkpoint()
+    if checkpoint:
+        print(f"Last run: {time.ctime(checkpoint.get('last_run', 0))}")
+    
+    # 1. Load desired state
+    desired = load_desired_state()
+    
+    # 2. Load world state
+    world = load_world_state()
+    
+    # 3. Detect drift
+    drifts = detect_drift(desired, world)
+    
+    # 4. Generate recommendations (Recommendation mode only)
+    recommendations = recommendation_engine(drifts, world)
+    
+    # 5. Emit events & Update summary state
+    if not recommendations and not drifts:
+        emit_event("summary_state", f"System state: {STATE_NOMINAL}", {"state": STATE_NOMINAL})
+    else:
+        # Extend runtime summary states: nominal, degraded, unstable, reconciling
+        has_blocked = any(r["type"] == RECONCILE_BLOCKED for r in recommendations)
+        has_required = any(r["type"] == RECONCILE_REQUIRED for r in recommendations)
+        
+        overall_state = STATE_NOMINAL
+        if has_blocked:
+            overall_state = STATE_UNSTABLE
+        elif has_required:
+            overall_state = STATE_DEGRADED
+        elif recommendations:
+            overall_state = STATE_DEGRADED
+            
+        emit_event("summary_state", f"System state: {overall_state}", {"state": overall_state})
+        
+        # Emit reconciliation events
+        for rec in recommendations:
+            emit_event(rec["type"], rec["message"], rec["drift"])
+
+    # 6. Save checkpoint
+    save_checkpoint({
+        "drift_count": len(drifts), 
+        "recommendation_count": len(recommendations),
+        "timestamp": time.time()
+    })
+    
+    print("Run complete.")
+
+if __name__ == "__main__":
+    main()
diff --git a/scripts/supervisor/test_scenarios.sh b/scripts/supervisor/test_scenarios.sh
new file mode 100644
index 0000000..b03aed0
--- /dev/null
+++ b/scripts/supervisor/test_scenarios.sh
@@ -0,0 +1,79 @@
+#!/bin/bash
+# Generate realistic reconciliation drift scenarios for the homelab supervisor.
+
+set -e
+
+# Configuration
+BASE_DIR=$(pwd)
+# Use local directory for testing if /opt is not writable
+WORLD_DIR="${HOMELAB_WORLD_ROOT:-$BASE_DIR/tmp/homelab/world}"
+INVENTORY_DIR="$BASE_DIR/hosts"
+
+echo "Setting up homelab reconciliation scenarios..."
+echo "World state: $WORLD_DIR"
+echo "Inventory: $INVENTORY_DIR"
+
+# Cleanup
+rm -rf "$WORLD_DIR"
+rm -rf "$INVENTORY_DIR"
+
+# Create directories
+mkdir -p "$INVENTORY_DIR/node1"
+mkdir -p "$INVENTORY_DIR/node2"
+mkdir -p "$WORLD_DIR/services" "$WORLD_DIR/nodes" "$WORLD_DIR/deployments" "$WORLD_DIR/incidents"
+
+# --- Scenario 1: Nominal ---
+cat <<EOF > "$INVENTORY_DIR/node1/services.yaml"
+services:
+  - name: homeassistant
+EOF
+
+cat <<EOF > "$WORLD_DIR/services/homeassistant.json"
+{"name": "homeassistant", "status": "healthy", "node": "node1"}
+EOF
+
+cat <<EOF > "$WORLD_DIR/nodes/node1.json"
+{"name": "node1", "status": "online"}
+EOF
+
+# --- Scenario 2: Unhealthy Service ---
+cat <<EOF > "$WORLD_DIR/services/homeassistant.json"
+{"name": "homeassistant", "status": "unhealthy", "node": "node1"}
+EOF
+
+# --- Scenario 3: Missing Service ---
+cat <<EOF > "$INVENTORY_DIR/node2/services.yaml"
+services:
+  - name: webapp
+EOF
+# webapp is missing from world/services
+
+# --- Scenario 4: Dependency Unavailable (for Missing Service) ---
+cat <<EOF > "$WORLD_DIR/services/database.json"
+{"name": "database", "status": "error", "node": "node2"}
+EOF
+# webapp depends on database in supervisor logic
+
+# --- Scenario 5: Offline Node ---
+cat <<EOF > "$WORLD_DIR/nodes/node2.json"
+{"name": "node2", "status": "offline"}
+EOF
+
+# --- Scenario 6: Repeated Deployment Failures ---
+cat <<EOF > "$WORLD_DIR/deployments/dep-001.json"
+{"id": "dep-001", "service": "webapp", "status": "failed", "timestamp": $(date +%s)}
+EOF
+cat <<EOF > "$WORLD_DIR/deployments/dep-002.json"
+{"id": "dep-002", "service": "webapp", "status": "failed", "timestamp": $(( $(date +%s) - 300 ))}
+EOF
+cat <<EOF > "$WORLD_DIR/deployments/dep-003.json"
+{"id": "dep-003", "service": "webapp", "status": "failed", "timestamp": $(( $(date +%s) - 600 ))}
+EOF
+
+# --- Scenario 7: Unresolved Incident ---
+cat <<EOF > "$WORLD_DIR/incidents/inc-99.json"
+{"id": "inc-99", "description": "High memory usage on node1", "status": "investigating"}
+EOF
+
+echo "Scenarios generated successfully."
+echo "You can now run: HOMELAB_WORLD_ROOT=$WORLD_DIR python3 scripts/supervisor/supervisor.py"
diff --git a/tmp/homelab/world/deployments/dep-001.json b/tmp/homelab/world/deployments/dep-001.json
new file mode 100644
index 0000000..02db067
--- /dev/null
+++ b/tmp/homelab/world/deployments/dep-001.json
@@ -0,0 +1 @@
+{"id": "dep-001", "service": "webapp", "status": "failed", "timestamp": 1778597957}
diff --git a/tmp/homelab/world/deployments/dep-002.json b/tmp/homelab/world/deployments/dep-002.json
new file mode 100644
index 0000000..e977aa0
--- /dev/null
+++ b/tmp/homelab/world/deployments/dep-002.json
@@ -0,0 +1 @@
+{"id": "dep-002", "service": "webapp", "status": "failed", "timestamp": 1778597657}
diff --git a/tmp/homelab/world/deployments/dep-003.json b/tmp/homelab/world/deployments/dep-003.json
new file mode 100644
index 0000000..66f10c9
--- /dev/null
+++ b/tmp/homelab/world/deployments/dep-003.json
@@ -0,0 +1 @@
+{"id": "dep-003", "service": "webapp", "status": "failed", "timestamp": 1778597357}
diff --git a/tmp/homelab/world/incidents/inc-99.json b/tmp/homelab/world/incidents/inc-99.json
new file mode 100644
index 0000000..4f28449
--- /dev/null
+++ b/tmp/homelab/world/incidents/inc-99.json
@@ -0,0 +1 @@
+{"id": "inc-99", "description": "High memory usage on node1", "status": "investigating"}
diff --git a/tmp/homelab/world/nodes/node1.json b/tmp/homelab/world/nodes/node1.json
new file mode 100644
index 0000000..d246df0
--- /dev/null
+++ b/tmp/homelab/world/nodes/node1.json
@@ -0,0 +1 @@
+{"name": "node1", "status": "online"}
diff --git a/tmp/homelab/world/nodes/node2.json b/tmp/homelab/world/nodes/node2.json
new file mode 100644
index 0000000..bcc0d43
--- /dev/null
+++ b/tmp/homelab/world/nodes/node2.json
@@ -0,0 +1 @@
+{"name": "node2", "status": "offline"}
diff --git a/tmp/homelab/world/services/database.json b/tmp/homelab/world/services/database.json
new file mode 100644
index 0000000..4395a11
--- /dev/null
+++ b/tmp/homelab/world/services/database.json
@@ -0,0 +1 @@
+{"name": "database", "status": "error", "node": "node2"}
diff --git a/tmp/homelab/world/services/homeassistant.json b/tmp/homelab/world/services/homeassistant.json
new file mode 100644
index 0000000..50e31b7
--- /dev/null
+++ b/tmp/homelab/world/services/homeassistant.json
@@ -0,0 +1 @@
+{"name": "homeassistant", "status": "unhealthy", "node": "node1"}