diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1a902f538e..c0a22be9a1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,7 +6,17 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.1.0/).
 ## [Unreleased]
 
 ### Changed
-- **`docker compose up` now pulls pre-built images by default** (#82) — `nousresearch/hermes-agent:latest` for the gateway and `ghcr.io/outsourc-e/hermes-workspace:latest` for the UI. Agent state persists in the `claude-data` named volume. Adds `docker-compose.dev.yml` overlay for building from source.
+- **`docker compose up` now pulls pre-built images by default** (#82) — `nousresearch/hermes-agent:latest` for the gateway and `ghcr.io/outsourc-e/hermes-workspace:latest` for the UI. Adds `docker-compose.dev.yml` overlay for building from source.
+
+### Fixed
+- **Docker: dashboard API unreachable** — agent now starts the dashboard process (`HERMES_DASHBOARD=1`) on `:9119` alongside the gateway; workspace reads sessions, skills, config, jobs, and MCP over the Docker network instead of falling back to limited zero-fork mode.
+- **Docker: gateway bound to loopback inside container** — `API_SERVER_HOST` now defaults to `0.0.0.0` inside the container so workspace can reach it over Docker DNS; host publish remains loopback-only (`127.0.0.1:8642`).
+- **Docker: volume naming** — renamed `claude-data` to `hermes-agent-data`; added `hermes-workspace-files` volume for workspace file browser persistence.
+- **Docker: healthcheck** now verifies both gateway `:8642` and dashboard `:9119` are responding before marking the agent healthy.
+- **pnpm 11 build** — added `pnpm-workspace.yaml` with `allowBuilds` map (replaces deprecated `onlyBuiltDependencies` / `dangerouslyAllowAllBuilds`).
+- **Chat: per-session model selection** — model picker in the composer now persists the selected model per session and is sent with each message, instead of silently falling back to the backend default.
+- **Settings: default model path** — changed from `agents.defaults.model.primary` to `model.default` to match the actual backend config key.
+- **Config API: rename message** — "Restart Claude" → "Restart Hermes Agent".
 
 ## [2.0.0] — 2026-04-20
 
diff --git a/Dockerfile b/Dockerfile
index 5c4f122f8c..8e8f782158 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -15,7 +15,7 @@ RUN corepack enable && apt-get update && apt-get install -y --no-install-recomme
 WORKDIR /app
 
 # Install deps (cache-friendly: copy only manifests first)
-COPY package.json pnpm-lock.yaml* ./
+COPY package.json pnpm-lock.yaml* pnpm-workspace.yaml* ./
 RUN pnpm install --frozen-lockfile
 
 # Copy sources and build
diff --git a/README.md b/README.md
index 223fc749f4..290735e122 100644
--- a/README.md
+++ b/README.md
@@ -382,13 +382,13 @@ If you've already started the workspace, change either URL from **Settings → C
 
 [![Open in GitHub Codespaces](https://img.shields.io/badge/GitHub%20Codespaces-Open-181717?logo=github)](https://github.com/codespaces/new?hide_repo_select=true&ref=main&repo=outsourc-e/hermes-workspace)
 
-The Docker setup runs both the **Hermes Agent gateway** and **Hermes Workspace** together.
+The Docker setup runs **Hermes Agent** and **Hermes Workspace** together. Hermes Agent starts both required APIs inside its container: the gateway on `:8642` and the dashboard API on `:9119` for sessions, skills, config, jobs, and MCP.
 
 ### Prerequisites
 
 - **Docker**
 - **Docker Compose**
-- **Anthropic API Key** — [Get one here](https://console.anthropic.com/settings/keys) (required for the agent gateway)
+- At least one model provider key, or a reachable local model server
 
 ### Step 1: Configure Environment
 
@@ -418,20 +418,30 @@ Using **Ollama, LM Studio, or another local server**? No key needed — just poi
 docker compose up
 ```
 
-This pulls two pre-built images and starts them:
+This pulls two pre-built images and starts two containers:
 
-- **hermes-agent** → `nousresearch/hermes-agent:latest` on port **8642**
-- **hermes-workspace** → `ghcr.io/outsourc-e/hermes-workspace:latest` on port **3000**
+- **hermes-agent** → `nousresearch/hermes-agent:latest`; gateway on Docker/host-loopback `:8642`, dashboard API on Docker-only `:9119`
+- **hermes-workspace** → `ghcr.io/outsourc-e/hermes-workspace:latest`; web UI on host-loopback `:3000`
 
 No local build. First run takes a minute to pull; subsequent starts are instant.
-Agent state (config, sessions, skills, memory, credentials) persists in the
-legacy-named `claude-data` Docker volume, so containers can be recreated without data loss.
+Agent state (config, sessions, skills, memory, credentials) persists in the named `hermes-agent-data` Docker volume, and files created from the Workspace file browser persist in `hermes-workspace-files`. These volumes survive container recreation, Docker restarts, and `docker compose down`. Only `docker compose down -v` removes them.
+
+#### What Docker configures for Hermes Agent
+
+The Compose file is non-interactive, so it chooses safe defaults that the manual `hermes setup` wizard normally asks about:
+
+- `terminal.backend: local` in `/opt/data/config.yaml`, meaning agent terminal commands run inside the `hermes-agent` container, not on your host machine.
+- `/opt/data` is persisted by the `hermes-agent-data` Docker volume.
+- `/workspace` in the Workspace UI is persisted by the `hermes-workspace-files` Docker volume.
+- The dashboard API is not published to the host; Workspace reaches it over Docker DNS at `http://hermes-agent:9119`.
+
+To change the agent terminal backend later, open **Settings → Providers / Models** in Workspace or edit `config.yaml` in the persisted volume. For host filesystem access, prefer an explicit host bind mount that you control instead of broad-mounting your home directory.
 
 ### Step 3: Access the Workspace
 
 Open `http://localhost:3000` and complete the onboarding.
 
-> **Verify:** Check the Docker logs for `[gateway] Connected to Hermes Agent` — this confirms the workspace successfully connected to the agent.
+> **Verify:** Check the Workspace logs for `mode=zero-fork` and `enhanced=[sessions, skills, memory, config, jobs]` — this confirms Workspace reached both the gateway and dashboard APIs.
 
 ### Building from source
 
diff --git a/docker-compose.yml b/docker-compose.yml
index 98cf0d8221..b553090582 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -21,10 +21,13 @@
 #     docker compose -f docker-compose.yml -f docker-compose.dev.yml up
 #
 # Persistent data:
-#   The `claude-data` named volume mounts at /opt/data inside the agent
-#   container. Config, sessions, skills, memory, and credentials live there
-#   and survive container recreation. For host-path mounts see the commented
-#   `volumes:` block on the hermes-agent service.
+#   `hermes-agent-data` — agent config, sessions, skills, memory, credentials.
+#     Mounted at /opt/data in the agent container and /home/workspace/.hermes
+#     in the workspace container (read-write for config reads; the agent is
+#     the primary writer).
+#   `hermes-workspace-files` — files created from the Workspace file browser.
+#   Both volumes survive container recreation and `docker compose down`.
+#   Only `docker compose down -v` removes them.
 #
 # Troubleshooting:
 #   - See README.md "Docker" troubleshooting section
@@ -32,10 +35,12 @@
 #   - Agent must expose port 8642
 
 services:
-  # The Claude AI Agent Gateway
-  # Provides the backend API that the workspace connects to
+  # The Hermes Agent gateway + dashboard APIs.
+  # Gateway runs in the foreground on :8642. Dashboard runs as a background
+  # process on :9119 and is reachable only on the private Docker network.
   hermes-agent:
     image: nousresearch/hermes-agent:latest
+    restart: unless-stopped
     # The Hermes Agent image entrypoint defaults to the interactive CLI which exits
     # immediately under `docker compose up -d`. We override here to start the
     # gateway, which is the long-running API/health server the Workspace needs.
@@ -46,13 +51,17 @@ services:
     environment:
       # Pass through whichever provider keys are set in .env. hermes-agent
       # uses the one that matches the provider configured in
-      # ~/.hermes/config.yaml (or whatever `claude setup` picked).
+      # ~/.hermes/config.yaml (or whatever `hermes setup` picked).
       ANTHROPIC_API_KEY: ${ANTHROPIC_API_KEY:-}
       OPENAI_API_KEY: ${OPENAI_API_KEY:-}
       OPENROUTER_API_KEY: ${OPENROUTER_API_KEY:-}
       GOOGLE_API_KEY: ${GOOGLE_API_KEY:-}
       GROQ_API_KEY: ${GROQ_API_KEY:-}
       MISTRAL_API_KEY: ${MISTRAL_API_KEY:-}
+      HERMES_UID: '10010'
+      HERMES_DASHBOARD: '1'
+      HERMES_DASHBOARD_HOST: 0.0.0.0
+      HERMES_DASHBOARD_PORT: '9119'
       # Authentication for the gateway when exposing off-loopback.
       # In the default compose setup the gateway is reachable from the
       # workspace container over the docker network on hermes-agent:8642,
@@ -61,37 +70,37 @@ services:
       # strong API_SERVER_KEY in .env — the workspace passes it through
       # as HERMES_API_TOKEN below. See #122.
       API_SERVER_KEY: ${API_SERVER_KEY:-}
-      # Bind only on the docker-internal interface by default. Set
-      # API_SERVER_HOST=0.0.0.0 in .env *and* set API_SERVER_KEY if you
-      # want to expose the gateway to the LAN / Tailscale. See #122.
-      API_SERVER_HOST: ${API_SERVER_HOST:-127.0.0.1}
+      # Bind inside the container so the workspace can reach the gateway over
+      # Docker DNS. The host publish below remains loopback-only.
+      API_SERVER_HOST: 0.0.0.0
       API_SERVER_ENABLED: 'true'
     volumes:
-      # Persist agent state across container recreation. Swap for a
-      # host-path mount (e.g. `./data:/opt/data`) if you want to edit
-      # config/skills directly from the host.
-      - claude-data:/opt/data
+      - hermes-agent-data:/opt/data
     healthcheck:
-      test: ['CMD-SHELL', 'curl -fsS http://localhost:8642/health || exit 1']
+      test: ['CMD-SHELL', 'curl -fsS http://localhost:8642/health && curl -fsS http://localhost:9119/api/status || exit 1']
       interval: 10s
       timeout: 5s
       retries: 5
-      start_period: 15s
+      start_period: 30s
     ports:
-      - '8642:8642'
+      - '127.0.0.1:8642:8642'
 
   # The Hermes Workspace Web UI
   # Connects to hermes-agent at http://hermes-agent:8642
   hermes-workspace:
     image: ghcr.io/outsourc-e/hermes-workspace:latest
+    restart: unless-stopped
     depends_on:
       hermes-agent:
         condition: service_healthy
     env_file:
       - .env
     environment:
+      HERMES_HOME: /home/workspace/.hermes
+      HERMES_WORKSPACE_DIR: /workspace
       # Internal Docker network URL (not localhost!)
       HERMES_API_URL: http://hermes-agent:8642
+      HERMES_DASHBOARD_URL: http://hermes-agent:9119
       # Must match API_SERVER_KEY on the hermes-agent side when that is set
       HERMES_API_TOKEN: ${API_SERVER_KEY:-}
       # Workspace session password. REQUIRED when HOST is non-loopback (the
@@ -108,8 +117,12 @@ services:
       # that sanitizes these headers — otherwise a client can spoof its IP
       # and bypass local-classification / rate limiting. See #125.
       TRUST_PROXY: ${TRUST_PROXY:-}
+    volumes:
+      - hermes-agent-data:/home/workspace/.hermes
+      - hermes-workspace-files:/workspace
     ports:
       - '127.0.0.1:3000:3000'
 
 volumes:
-  claude-data:
+  hermes-agent-data:
+  hermes-workspace-files:
diff --git a/pnpm-workspace.yaml b/pnpm-workspace.yaml
new file mode 100644
index 0000000000..bbc93b4387
--- /dev/null
+++ b/pnpm-workspace.yaml
@@ -0,0 +1,5 @@
+allowBuilds:
+  electron: true
+  electron-winstaller: true
+  esbuild: true
+  unrs-resolver: true
diff --git a/src/routes/api/claude-config.ts b/src/routes/api/claude-config.ts
index c3333b4cd7..dc58e76f4e 100644
--- a/src/routes/api/claude-config.ts
+++ b/src/routes/api/claude-config.ts
@@ -305,7 +305,7 @@ export const Route = createFileRoute('/api/claude-config')({
 
         return Response.json({
           ok: true,
-          message: 'Config updated. Restart Claude to apply changes.',
+          message: 'Config updated. Restart Hermes Agent to apply changes.',
         })
       },
     },
diff --git a/src/screens/chat/chat-screen.tsx b/src/screens/chat/chat-screen.tsx
index 90a83d8578..3302be0a7f 100644
--- a/src/screens/chat/chat-screen.tsx
+++ b/src/screens/chat/chat-screen.tsx
@@ -1,8 +1,3 @@
-// Module-level local model override — set by composer when user picks a local model
-// Avoids prop threading. Reset when switching back to cloud models.
-export let _localModelOverride = ''
-export function setLocalModelOverride(model: string) { _localModelOverride = model }
-
 import {
   useCallback,
   useEffect,
@@ -102,6 +97,8 @@ import { useResearchCard } from '@/hooks/use-research-card'
 import { useTapDebug } from '@/hooks/use-tap-debug'
 import { useChatMode } from '@/hooks/use-chat-mode'
 import { useChatActivityStore, type AgentActivity } from '@/stores/chat-activity-store'
+import { useSessionModelStore } from '@/stores/session-model-store'
+import { _localModelOverride } from './local-model-override'
 
 type ChatScreenProps = {
   activeFriendlyId: string
@@ -976,7 +973,13 @@ export function ChatScreen({
   }, [modelsQuery.data])
 
   const gatewayModel = currentModelQuery.data || ''
-  const currentModel = _localModelOverride || gatewayModel
+  const modelSessionKey = isNewChat
+    ? 'main'
+    : forcedSessionKey || resolvedSessionKey || activeSessionKey || activeFriendlyId
+  const sessionModel = useSessionModelStore((state) =>
+    state.getModel(modelSessionKey),
+  )
+  const currentModel = sessionModel || _localModelOverride || gatewayModel
 
   // Ref so sendMessage can always read latest thinkingLevel without being in deps
   const thinkingLevelRef = useRef<ThinkingLevel>(thinkingLevel)
@@ -2761,7 +2764,7 @@ export function ChatScreen({
               disabled={sending || hideUi}
               sessionKey={
                 isNewChat
-                  ? undefined
+                  ? 'main'
                   : forcedSessionKey || resolvedSessionKey || activeSessionKey
               }
               wrapperRef={composerRef}
diff --git a/src/screens/settings/providers-screen.tsx b/src/screens/settings/providers-screen.tsx
index 3004cf2047..1cbc2c475e 100644
--- a/src/screens/settings/providers-screen.tsx
+++ b/src/screens/settings/providers-screen.tsx
@@ -260,10 +260,10 @@ const SETTINGS: Array<SettingDefinition> = [
   {
     id: 'primary-model',
     tab: 'models',
-    path: 'agents.defaults.model.primary',
+    path: 'model.default',
     label: 'Default model',
     description:
-      'Primary model used for new agents unless a specific agent overrides it.',
+      'Backend default model used when a chat does not select a per-session override.',
     kind: 'text',
     placeholder: 'provider/model',
   },