diff --git a/packages/cli/src/__tests__/create-workflow.test.ts b/packages/cli/src/__tests__/create-workflow.test.ts
index fef5dcd..d1593b1 100644
--- a/packages/cli/src/__tests__/create-workflow.test.ts
+++ b/packages/cli/src/__tests__/create-workflow.test.ts
@@ -9,7 +9,7 @@ import { mkdirSync, mkdtempSync, readFileSync, rmSync, writeFileSync } from "nod
 import { tmpdir } from "node:os";
 import { join } from "node:path";
 import { afterEach, beforeEach, describe, expect, it } from "vitest";
-import { buildWorkflowScaffold } from "../commands/create.js";
+import { buildWorkflowPackageJson, buildWorkflowScaffold } from "../commands/create.js";
 
 let tmpDir: string;
 
@@ -75,6 +75,21 @@ describe("buildWorkflowScaffold", () => {
     const { roleMainPromptMd } = buildWorkflowScaffold("my-flow");
     expect(roleMainPromptMd).toContain("# my-flow — main role");
   });
+
+  it("package.json defines esbuild bundling to dist/", () => {
+    const pkg = JSON.parse(buildWorkflowPackageJson("my-flow")) as {
+      scripts: { build: string };
+      devDependencies: { esbuild: string };
+    };
+    expect(pkg.scripts.build).toContain("esbuild");
+    expect(pkg.scripts.build).toContain("--outdir=dist");
+    expect(pkg.devDependencies.esbuild).toBeTruthy();
+  });
+
+  it("buildWorkflowScaffold includes package.json body", () => {
+    const { packageJson } = buildWorkflowScaffold("wf");
+    expect(JSON.parse(packageJson).scripts.build).toContain("esbuild");
+  });
 });
 
 describe("workflow scaffold file writing (simulated)", () => {
diff --git a/packages/cli/src/__tests__/e2e-create.test.ts b/packages/cli/src/__tests__/e2e-create.test.ts
index f71802a..f7432ff 100644
--- a/packages/cli/src/__tests__/e2e-create.test.ts
+++ b/packages/cli/src/__tests__/e2e-create.test.ts
@@ -121,23 +121,30 @@ describe("e2e create", () => {
     }
   });
 
-  it("create workflow scaffolds index.ts", { timeout: 10_000 }, async () => {
-    fakeHome = mkdtempSync(join(tmpdir(), "nerve-create-e2e-"));
-    const nerveRoot = join(fakeHome, ".uncaged-nerve");
+  it(
+    "create workflow scaffolds sources and package.json with esbuild build",
+    { timeout: 10_000 },
+    async () => {
+      fakeHome = mkdtempSync(join(tmpdir(), "nerve-create-e2e-"));
+      const nerveRoot = join(fakeHome, ".uncaged-nerve");
 
-    await runTestCli(fakeHome, ["init", "--force", "--skip-install"]);
+      await runTestCli(fakeHome, ["init", "--force", "--skip-install"]);
 
-    const wf = await runTestCli(fakeHome, ["create", "workflow", "e2e-flow"]);
-    expect(wf.exitCode).toBe(0);
-    expect(wf.stdout).toContain("✅");
+      const wf = await runTestCli(fakeHome, ["create", "workflow", "e2e-flow"]);
+      expect(wf.exitCode).toBe(0);
+      expect(wf.stdout).toContain("✅");
 
-    const indexPath = join(nerveRoot, "workflows", "e2e-flow", "index.ts");
-    const mainRolePath = join(nerveRoot, "workflows", "e2e-flow", "roles", "main", "index.ts");
-    expect(existsSync(indexPath)).toBe(true);
-    expect(existsSync(mainRolePath)).toBe(true);
-    expect(readFileSync(indexPath, "utf8")).toContain('name: "e2e-flow"');
-    expect(readFileSync(mainRolePath, "utf8")).toContain("e2e-flow started");
-  });
+      const pkgPath = join(nerveRoot, "workflows", "e2e-flow", "package.json");
+      const indexPath = join(nerveRoot, "workflows", "e2e-flow", "index.ts");
+      const mainRolePath = join(nerveRoot, "workflows", "e2e-flow", "roles", "main", "index.ts");
+      expect(existsSync(pkgPath)).toBe(true);
+      expect(JSON.parse(readFileSync(pkgPath, "utf8")).scripts.build).toContain("esbuild");
+      expect(existsSync(indexPath)).toBe(true);
+      expect(existsSync(mainRolePath)).toBe(true);
+      expect(readFileSync(indexPath, "utf8")).toContain('name: "e2e-flow"');
+      expect(readFileSync(mainRolePath, "utf8")).toContain("e2e-flow started");
+    },
+  );
 
   it("create sense scaffolds index.js, schema.ts, and migration", { timeout: 10_000 }, async () => {
     fakeHome = mkdtempSync(join(tmpdir(), "nerve-create-e2e-"));
diff --git a/packages/cli/src/__tests__/e2e-harness.ts b/packages/cli/src/__tests__/e2e-harness.ts
index 2425ca6..e0ff2f8 100644
--- a/packages/cli/src/__tests__/e2e-harness.ts
+++ b/packages/cli/src/__tests__/e2e-harness.ts
@@ -208,7 +208,7 @@ function writeWorkspaceLayout(nerveRoot: string, withNoopWorkflow: boolean): voi
   mkdirSync(join(nerveRoot, "data", "senses"), { recursive: true });
   mkdirSync(join(nerveRoot, "data", "blobs"), { recursive: true });
   mkdirSync(join(nerveRoot, "senses", "counter", "migrations"), { recursive: true });
-  mkdirSync(join(nerveRoot, "workflows", "echo"), { recursive: true });
+  mkdirSync(join(nerveRoot, "workflows", "echo", "dist"), { recursive: true });
   writeFileSync(
     join(nerveRoot, "nerve.yaml"),
     withNoopWorkflow ? nerveYamlWithNoopWorkflow : nerveYamlTemplate,
@@ -224,10 +224,19 @@ function writeWorkspaceLayout(nerveRoot: string, withNoopWorkflow: boolean): voi
     withNoopWorkflow ? counterIndexJsWithNoopWorkflow : counterIndexJs,
     "utf8",
   );
-  writeFileSync(join(nerveRoot, "workflows", "echo", "index.js"), echoWorkflowIndexJs, "utf8");
+  writeFileSync(
+    join(nerveRoot, "workflows", "echo", "dist", "index.js"),
+    echoWorkflowIndexJs,
+    "utf8",
+  );
   if (withNoopWorkflow) {
+    mkdirSync(join(nerveRoot, "workflows", "noop", "dist"), { recursive: true });
     mkdirSync(join(nerveRoot, "workflows", "noop", "migrations"), { recursive: true });
-    writeFileSync(join(nerveRoot, "workflows", "noop", "index.js"), noopWorkflowIndexJs, "utf8");
+    writeFileSync(
+      join(nerveRoot, "workflows", "noop", "dist", "index.js"),
+      noopWorkflowIndexJs,
+      "utf8",
+    );
   }
   linkWorkspaceDaemonIntoNerveRoot(nerveRoot);
 }
diff --git a/packages/cli/src/__tests__/e2e-store-archive.test.ts b/packages/cli/src/__tests__/e2e-store-archive.test.ts
index c1ce2dd..f93edce 100644
--- a/packages/cli/src/__tests__/e2e-store-archive.test.ts
+++ b/packages/cli/src/__tests__/e2e-store-archive.test.ts
@@ -41,7 +41,7 @@ describe("e2e store archive", () => {
 
   it(
     "archives old workflow logs to JSONL, removes rows from logs, thread list still reads workflow_runs",
-    { timeout: 30_000 },
+    { timeout: 60_000 },
     async () => {
       daemon = await startTestDaemon({ withNoopWorkflow: true });
       linkWorkspaceDaemonIntoNerveRoot(daemon.nerveRoot);
@@ -97,7 +97,7 @@ describe("e2e store archive", () => {
     },
   );
 
-  it("store archive --vacuum completes VACUUM after archiving", { timeout: 30_000 }, async () => {
+  it("store archive --vacuum completes VACUUM after archiving", { timeout: 60_000 }, async () => {
     daemon = await startTestDaemon({ withNoopWorkflow: true });
     linkWorkspaceDaemonIntoNerveRoot(daemon.nerveRoot);
 
diff --git a/packages/cli/src/commands/create.ts b/packages/cli/src/commands/create.ts
index d5dacbd..16bcd40 100644
--- a/packages/cli/src/commands/create.ts
+++ b/packages/cli/src/commands/create.ts
@@ -19,13 +19,34 @@ export type WorkflowScaffoldFiles = {
   indexTs: string;
   roleMainIndexTs: string;
   roleMainPromptMd: string;
+  packageJson: string;
 };
 
+export function buildWorkflowPackageJson(name: string): string {
+  return `${JSON.stringify(
+    {
+      name: `nerve-workflow-${name}`,
+      private: true,
+      type: "module",
+      scripts: {
+        build:
+          "esbuild index.ts --bundle --platform=node --format=esm --outdir=dist --packages=external",
+      },
+      devDependencies: {
+        esbuild: "^0.27.0",
+      },
+    },
+    null,
+    2,
+  )}\n`;
+}
+
 export function buildWorkflowScaffold(name: string): WorkflowScaffoldFiles {
   return {
     indexTs: buildWorkflowIndexTs(name),
     roleMainIndexTs: buildWorkflowMainRoleIndexTs(name),
     roleMainPromptMd: buildWorkflowMainRolePromptMd(name),
+    packageJson: buildWorkflowPackageJson(name),
   };
 }
 
@@ -179,27 +200,32 @@ const createWorkflowCommand = defineCommand({
 
     mkdirSync(workflowDir, { recursive: true });
     const scaffold = buildWorkflowScaffold(args.name);
+    writeFile(join(workflowDir, "package.json"), scaffold.packageJson);
     writeFile(join(workflowDir, "index.ts"), scaffold.indexTs);
     writeFile(join(workflowDir, "roles", "main", "index.ts"), scaffold.roleMainIndexTs);
     writeFile(join(workflowDir, "roles", "main", "prompt.md"), scaffold.roleMainPromptMd);
 
     process.stdout.write("✅ Workflow scaffolded:\n");
+    process.stdout.write(`   ${join(workflowDir, "package.json")}\n`);
     process.stdout.write(`   ${join(workflowDir, "index.ts")}\n`);
     process.stdout.write(`   ${join(workflowDir, "roles", "main", "index.ts")}\n`);
     process.stdout.write(`   ${join(workflowDir, "roles", "main", "prompt.md")}\n`);
     process.stdout.write("\n💡 Next steps:\n");
-    process.stdout.write("   1. Add to nerve.yaml:\n");
+    process.stdout.write(
+      `   1. In ${workflowDir}, run \`npm install\` then \`npm run build\` (bundles to dist/index.js).\n`,
+    );
+    process.stdout.write("   2. Add to nerve.yaml:\n");
     process.stdout.write("         workflows:\n");
     process.stdout.write(`           ${args.name}:\n`);
     process.stdout.write("             concurrency: 1\n");
     process.stdout.write("             overflow: drop\n");
     process.stdout.write(
-      `   2. Edit ${join(workflowDir, "roles", "main", "index.ts")} (and optional prompt.md).\n`,
+      `   3. Edit ${join(workflowDir, "roles", "main", "index.ts")} (and optional prompt.md).\n`,
     );
     process.stdout.write(
-      `   3. Adjust moderator routing in ${join(workflowDir, "index.ts")} if you add roles.\n`,
+      `   4. Adjust moderator routing in ${join(workflowDir, "index.ts")} if you add roles.\n`,
     );
-    process.stdout.write("   4. Run `nerve start` to launch the daemon.\n");
+    process.stdout.write("   5. Run `nerve start` to launch the daemon.\n");
   },
 });
 
diff --git a/packages/daemon/src/__tests__/file-watcher-workflow.test.ts b/packages/daemon/src/__tests__/file-watcher-workflow.test.ts
index 60f4d71..c32a958 100644
--- a/packages/daemon/src/__tests__/file-watcher-workflow.test.ts
+++ b/packages/daemon/src/__tests__/file-watcher-workflow.test.ts
@@ -1,7 +1,7 @@
 /**
  * Phase 3 — FileWatcher workflow change detection tests.
  *
- * Verifies that file-watcher.ts detects .ts file changes under workflows/.
+ * Verifies that file-watcher.ts detects .js changes under workflows/<name>/dist/.
  */
 
 import { mkdirSync, mkdtempSync, rmSync, writeFileSync } from "node:fs";
@@ -15,10 +15,10 @@ import type { FileChange, FileWatcher } from "../file-watcher.js";
 
 function makeTempNerveRoot(): string {
   const dir = mkdtempSync(join(tmpdir(), "nerve-fw-wf-test-"));
-  mkdirSync(join(dir, "workflows", "my-workflow"), { recursive: true });
+  mkdirSync(join(dir, "workflows", "my-workflow", "dist"), { recursive: true });
   writeFileSync(join(dir, "nerve.yaml"), "senses: {}\n");
   writeFileSync(
-    join(dir, "workflows", "my-workflow", "index.ts"),
+    join(dir, "workflows", "my-workflow", "dist", "index.js"),
     "export default { roles: {}, moderate: () => null };",
   );
   return dir;
@@ -54,7 +54,7 @@ describe("createFileWatcher — workflow file changes (Phase 3)", () => {
     }
   });
 
-  it("detects workflow .ts file changes and emits kind=workflow", async () => {
+  it("detects workflow dist .js file changes and emits kind=workflow", async () => {
     const root = makeTempNerveRoot();
     const changes: FileChange[] = [];
 
@@ -62,7 +62,7 @@ describe("createFileWatcher — workflow file changes (Phase 3)", () => {
 
     await new Promise((r) => setTimeout(r, 100));
     writeFileSync(
-      join(root, "workflows", "my-workflow", "index.ts"),
+      join(root, "workflows", "my-workflow", "dist", "index.js"),
       "export default { roles: {}, moderate: () => null }; // updated",
     );
 
@@ -108,7 +108,7 @@ describe("createFileWatcher — workflow file changes (Phase 3)", () => {
 
     for (let i = 0; i < 5; i++) {
       writeFileSync(
-        join(root, "workflows", "my-workflow", "index.ts"),
+        join(root, "workflows", "my-workflow", "dist", "index.js"),
         `export default {}; // v${i}`,
       );
     }
diff --git a/packages/daemon/src/__tests__/file-watcher.test.ts b/packages/daemon/src/__tests__/file-watcher.test.ts
index 1da98a6..c957586 100644
--- a/packages/daemon/src/__tests__/file-watcher.test.ts
+++ b/packages/daemon/src/__tests__/file-watcher.test.ts
@@ -16,7 +16,7 @@ function makeTempNerveRoot(): string {
   mkdirSync(join(dir, "senses", "cpu-usage"), { recursive: true });
   writeFileSync(join(dir, "nerve.yaml"), "senses: {}\n");
   writeFileSync(
-    join(dir, "senses", "cpu-usage", "index.ts"),
+    join(dir, "senses", "cpu-usage", "index.js"),
     "export async function compute() { return null; }",
   );
   return dir;
@@ -70,7 +70,7 @@ describe("createFileWatcher", () => {
     expect(changes.some((c) => c.kind === "config")).toBe(true);
   }, 10_000);
 
-  it("detects sense .ts file changes", async () => {
+  it("detects sense .js file changes", async () => {
     const root = makeTempNerveRoot();
     const changes: FileChange[] = [];
 
@@ -78,7 +78,7 @@ describe("createFileWatcher", () => {
 
     await new Promise((r) => setTimeout(r, 100));
     writeFileSync(
-      join(root, "senses", "cpu-usage", "index.ts"),
+      join(root, "senses", "cpu-usage", "index.js"),
       "export async function compute() { return { signal: 42, workflow: null }; }",
     );
 
diff --git a/packages/daemon/src/file-watcher.ts b/packages/daemon/src/file-watcher.ts
index 6721b2e..62b8ce8 100644
--- a/packages/daemon/src/file-watcher.ts
+++ b/packages/daemon/src/file-watcher.ts
@@ -4,8 +4,11 @@
  * Uses Node.js fs.watch (no external dependencies).
  *
  * Watched events:
- *   - .ts file under senses/ modified → callback with { kind: "sense", senseName, filePath }
- *   - nerve.yaml modified → callback with { kind: "config", filePath }
+ *   - Path matches sense bundled output (`senses/<name>/.../*.js`): emits a sense change for hot reload.
+ *   - Path matches workflow bundle output (`workflows/<name>/dist/.../*.js`): emits a workflow change for hot reload.
+ *   - `nerve.yaml`: emits a config change.
+ *
+ * Sense and workflow paths intentionally track built/runtime artifacts (for example `index.js` under a sense, or files under `dist/`), not TypeScript sources.
  *
  * Debounces rapid changes (e.g. editor save flicker) with a configurable delay.
  *
@@ -18,7 +21,7 @@
 
 import { watch } from "node:fs";
 import type { FSWatcher } from "node:fs";
-import { join, relative, sep } from "node:path";
+import { join, sep } from "node:path";
 
 export type SenseFileChange = {
   kind: "sense";
@@ -67,26 +70,28 @@ export function createFileWatcher(
     );
   }
 
+  // senses/<senseName>/<any>/file.js — runtime output the sense worker loads (see sense-worker layout).
+  const senseJsPattern = /^senses\/([^/]+)\/.+\.js$/;
+
+  // workflows/<workflowName>/dist/<any>/file.js — bundled workflow (see workflow-worker loader).
+  const workflowDistJsPattern = /^workflows\/([^/]+)\/dist\/.+\.js$/;
+
   function handleSenseChange(normalized: string, filename: string): void {
-    if (!(normalized.startsWith("senses/") && normalized.endsWith(".ts"))) return;
-    const rel = relative("senses", normalized);
-    const senseName = rel.split("/")[0];
-    if (senseName) {
-      debounced(`sense:${senseName}`, () => {
-        handler({ kind: "sense", senseName, filePath: join(nerveRoot, filename) });
-      });
-    }
+    const m = senseJsPattern.exec(normalized);
+    if (m === null) return;
+    const senseName = m[1];
+    debounced(`sense:${senseName}`, () => {
+      handler({ kind: "sense", senseName, filePath: join(nerveRoot, filename) });
+    });
   }
 
   function handleWorkflowChange(normalized: string, filename: string): void {
-    if (!(normalized.startsWith("workflows/") && normalized.endsWith(".ts"))) return;
-    const rel = relative("workflows", normalized);
-    const workflowName = rel.split("/")[0];
-    if (workflowName) {
-      debounced(`workflow:${workflowName}`, () => {
-        handler({ kind: "workflow", workflowName, filePath: join(nerveRoot, filename) });
-      });
-    }
+    const m = workflowDistJsPattern.exec(normalized);
+    if (m === null) return;
+    const workflowName = m[1];
+    debounced(`workflow:${workflowName}`, () => {
+      handler({ kind: "workflow", workflowName, filePath: join(nerveRoot, filename) });
+    });
   }
 
   function handleFsEvent(_eventType: string, filename: string | null): void {
diff --git a/packages/daemon/src/workflow-manager.ts b/packages/daemon/src/workflow-manager.ts
index b76e090..ffd8ce9 100644
--- a/packages/daemon/src/workflow-manager.ts
+++ b/packages/daemon/src/workflow-manager.ts
@@ -60,7 +60,7 @@ export type WorkflowManager = {
   updateConfig: (newConfig: NerveConfig) => void;
   /**
    * Drain active threads for a workflow, then respawn its worker process.
-   * Used for hot reload when the workflow .ts file changes.
+   * Used for hot reload when bundled workflow output under workflows/<name>/dist/ changes.
    * Waits up to `drainTimeoutMs` for threads to complete before force-killing.
    */
   drainAndRespawn: (workflowName: string, drainTimeoutMs?: number) => Promise<void>;
diff --git a/packages/daemon/src/workflow-worker.ts b/packages/daemon/src/workflow-worker.ts
index d040448..17e8d93 100644
--- a/packages/daemon/src/workflow-worker.ts
+++ b/packages/daemon/src/workflow-worker.ts
@@ -6,7 +6,7 @@
  * the user's WorkflowDefinition, then signals ready and enters the IPC event loop.
  *
  * Layout assumptions (nerve user config at `<nerveRoot>/`):
- *   workflows/<name>/index.ts  (or .js)  ← user workflow definition
+ *   workflows/<name>/dist/index.js  ← bundled user workflow definition (e.g. esbuild output)
  */
 
 import "./experimental-warning-suppression.js";
@@ -298,15 +298,10 @@ async function loadWorkflowDefinition(
   nerveRoot: string,
   workflowName: string,
 ): Promise<WorkflowDefinition<RoleMeta>> {
-  const candidates = [
-    resolve(join(nerveRoot, "workflows", workflowName, "index.ts")),
-    resolve(join(nerveRoot, "workflows", workflowName, "index.js")),
-  ];
-
-  const indexPath = candidates.find((p) => existsSync(p));
-  if (!indexPath) {
+  const indexPath = resolve(join(nerveRoot, "workflows", workflowName, "dist", "index.js"));
+  if (!existsSync(indexPath)) {
     throw new Error(
-      `Workflow definition not found for "${workflowName}". Tried:\n${candidates.map((p) => `  ${p}`).join("\n")}`,
+      `Workflow definition not found for "${workflowName}". Expected:\n  ${indexPath}`,
     );
   }