diff --git a/config/factory/activate-settings.sh b/config/factory/activate-settings.sh
new file mode 100644
index 000000000..62a781210
--- /dev/null
+++ b/config/factory/activate-settings.sh
@@ -0,0 +1,102 @@
+#!/usr/bin/env bash
+# Merge managed Droid settings into Factory's app-owned settings file.
+# Usage: activate-settings.sh <managed_settings_json> <jq_bin>
+set -euo pipefail
+
+MANAGED_SETTINGS="$1"
+JQ_BIN="$2"
+FACTORY_DIR="${HOME}/.factory"
+SETTINGS="${FACTORY_DIR}/settings.json"
+TEMP_SETTINGS=""
+
+cleanup() {
+  if [ -n "$TEMP_SETTINGS" ]; then
+    rm -f "$TEMP_SETTINGS"
+  fi
+}
+trap cleanup EXIT
+
+mkdir -p "$FACTORY_DIR"
+TEMP_SETTINGS="$(mktemp "$FACTORY_DIR/settings.json.XXXXXX")"
+
+if [ -f "$SETTINGS" ]; then
+  # The jq program intentionally contains literal $HOME for Factory to expand.
+  # shellcheck disable=SC2016
+  "$JQ_BIN" --slurpfile managed "$MANAGED_SETTINGS" '
+    def is_legacy_droid_command:
+      tostring | contains("droid-hook.sh");
+
+    def is_home_command($command; $relative):
+      ($command == ("$HOME/" + $relative))
+      or (((env.HOME // "") != "")
+          and ($command == ((env.HOME // "") + "/" + $relative)));
+
+    def is_managed_hook_command($matcher):
+      tostring as $command
+      | (($matcher == "Execute")
+         and (is_home_command($command; "dotfiles/config/shared/hooks/security.sh")
+              or is_home_command($command; "dotfiles/config/shared/hooks/block-git-push.sh")
+              or is_home_command($command; "dotfiles/config/shared/hooks/block-gh-settings.sh")))
+      or (($matcher == "^(Edit|Write|Create|ApplyPatch)$")
+          and (is_home_command($command; "dotfiles/config/shared/hooks/secret-guard.sh")
+               or is_home_command($command; ".cargo/bin/git-ai checkpoint droid --hook-input stdin")));
+
+    def clean_hook_group:
+      if ((.hooks? | type) == "array") then
+        .matcher as $matcher
+        | .hooks |= map(
+            select(
+              (((.command? // "") | is_legacy_droid_command) | not)
+              and (((.command? // "") | is_managed_hook_command($matcher)) | not)
+            )
+          )
+        | select((.hooks | length) > 0)
+      else
+        .
+      end;
+
+    ($managed[0]) as $managed_settings
+    | .sessionDefaultSettings =
+        ((.sessionDefaultSettings // {}) * $managed_settings.sessionDefaultSettings)
+    | .customModels =
+        ((.customModels // [])
+         | if type == "array" then
+             map(select(.id != $managed_settings.customModels[0].id))
+             + $managed_settings.customModels
+           else
+             $managed_settings.customModels
+           end)
+    | .hooks = (.hooks // {})
+    | .hooks |= with_entries(
+        if ((.value | type) == "array") then
+          .value |= map(clean_hook_group)
+        else
+          .
+        end
+      )
+    | if ((.hooks.importedClaudeHooks? | type) == "array") then
+        .hooks.importedClaudeHooks |= map(
+          select(if type == "string"
+            then ((is_legacy_droid_command or contains("git-ai checkpoint droid")) | not)
+            else true
+            end)
+        )
+      else
+        .
+      end
+    | reduce ($managed_settings.hooks | to_entries[]) as $entry (.;
+        .hooks[$entry.key] =
+          (((.hooks[$entry.key] // [])
+            | if type == "array" then map(clean_hook_group) else [] end)
+           + $entry.value)
+      )
+  ' "$SETTINGS" >"$TEMP_SETTINGS"
+else
+  # shellcheck disable=SC2016
+  "$JQ_BIN" --slurpfile managed "$MANAGED_SETTINGS" -n '
+    ($managed[0])
+  ' >"$TEMP_SETTINGS"
+fi
+
+mv -f "$TEMP_SETTINGS" "$SETTINGS"
+chmod 600 "$SETTINGS"
diff --git a/config/factory/default.nix b/config/factory/default.nix
index e0f734800..12c81ae98 100644
--- a/config/factory/default.nix
+++ b/config/factory/default.nix
@@ -1,6 +1,24 @@
-_: {
+{
+  config,
+  lib,
+  pkgs,
+  ...
+}:
+let
+  factorySettingsActivation = ./activate-settings.sh;
+in
+{
   home.file.".factory/config.json" = {
     source = ./config.json;
     force = true;
   };
+
+  # Factory owns settings.json and rewrites it as the app evolves. Merge only
+  # the managed Droid model and git-ai hooks so unrelated Factory preferences
+  # survive.
+  home.activation.factorySettings = config.lib.dag.entryAfter [ "writeBoundary" ] ''
+    $DRY_RUN_CMD ${pkgs.bash}/bin/bash "${factorySettingsActivation}" \
+      "${./settings.json}" \
+      "${pkgs.jq}/bin/jq"
+  '';
 }
diff --git a/config/factory/settings.json b/config/factory/settings.json
new file mode 100644
index 000000000..43468bae4
--- /dev/null
+++ b/config/factory/settings.json
@@ -0,0 +1,64 @@
+{
+  "sessionDefaultSettings": {
+    "model": "custom:gemma3:4b-0",
+    "reasoningEffort": "none"
+  },
+  "customModels": [
+    {
+      "model": "gemma3:4b",
+      "id": "custom:gemma3:4b-0",
+      "index": 0,
+      "baseUrl": "http://127.0.0.1:11434/v1",
+      "apiKey": "ollama",
+      "displayName": "Gemma3:4b",
+      "maxOutputTokens": 64000,
+      "noImageSupport": true,
+      "provider": "generic-chat-completion-api"
+    }
+  ],
+  "hooks": {
+    "PreToolUse": [
+      {
+        "matcher": "Execute",
+        "hooks": [
+          {
+            "command": "$HOME/dotfiles/config/shared/hooks/security.sh",
+            "type": "command"
+          },
+          {
+            "command": "$HOME/dotfiles/config/shared/hooks/block-git-push.sh",
+            "type": "command"
+          },
+          {
+            "command": "$HOME/dotfiles/config/shared/hooks/block-gh-settings.sh",
+            "type": "command"
+          }
+        ]
+      },
+      {
+        "matcher": "^(Edit|Write|Create|ApplyPatch)$",
+        "hooks": [
+          {
+            "command": "$HOME/dotfiles/config/shared/hooks/secret-guard.sh",
+            "type": "command"
+          },
+          {
+            "command": "$HOME/.cargo/bin/git-ai checkpoint droid --hook-input stdin",
+            "type": "command"
+          }
+        ]
+      }
+    ],
+    "PostToolUse": [
+      {
+        "matcher": "^(Edit|Write|Create|ApplyPatch)$",
+        "hooks": [
+          {
+            "command": "$HOME/.cargo/bin/git-ai checkpoint droid --hook-input stdin",
+            "type": "command"
+          }
+        ]
+      }
+    ]
+  }
+}
diff --git a/config/factory/settings.tpl.json b/config/factory/settings.tpl.json
new file mode 100644
index 000000000..7a3467892
--- /dev/null
+++ b/config/factory/settings.tpl.json
@@ -0,0 +1,64 @@
+{
+  "sessionDefaultSettings": {
+    "model": "custom:__GEMMA_LOCAL_NONDOT__-0",
+    "reasoningEffort": "none"
+  },
+  "customModels": [
+    {
+      "model": "__GEMMA_LOCAL__",
+      "id": "custom:__GEMMA_LOCAL_NONDOT__-0",
+      "index": 0,
+      "baseUrl": "http://127.0.0.1:11434/v1",
+      "apiKey": "ollama",
+      "displayName": "__GEMMA_LOCAL_PRETTY__",
+      "maxOutputTokens": 64000,
+      "noImageSupport": true,
+      "provider": "generic-chat-completion-api"
+    }
+  ],
+  "hooks": {
+    "PreToolUse": [
+      {
+        "matcher": "Execute",
+        "hooks": [
+          {
+            "command": "$HOME/dotfiles/config/shared/hooks/security.sh",
+            "type": "command"
+          },
+          {
+            "command": "$HOME/dotfiles/config/shared/hooks/block-git-push.sh",
+            "type": "command"
+          },
+          {
+            "command": "$HOME/dotfiles/config/shared/hooks/block-gh-settings.sh",
+            "type": "command"
+          }
+        ]
+      },
+      {
+        "matcher": "^(Edit|Write|Create|ApplyPatch)$",
+        "hooks": [
+          {
+            "command": "$HOME/dotfiles/config/shared/hooks/secret-guard.sh",
+            "type": "command"
+          },
+          {
+            "command": "$HOME/.cargo/bin/git-ai checkpoint droid --hook-input stdin",
+            "type": "command"
+          }
+        ]
+      }
+    ],
+    "PostToolUse": [
+      {
+        "matcher": "^(Edit|Write|Create|ApplyPatch)$",
+        "hooks": [
+          {
+            "command": "$HOME/.cargo/bin/git-ai checkpoint droid --hook-input stdin",
+            "type": "command"
+          }
+        ]
+      }
+    ]
+  }
+}
diff --git a/config/shared/hooks/README.md b/config/shared/hooks/README.md
index 57347760c..bfc1c634e 100644
--- a/config/shared/hooks/README.md
+++ b/config/shared/hooks/README.md
@@ -10,6 +10,9 @@
 
 Both hooks exit `0` when a command may proceed and exit `2` with a `BLOCKED by ...` diagnostic when it must stop.
 
+Factory Droid uses the Execute matcher for shell commands and the standard edit
+matcher for file writes with these shared guardrails.
+
 ## Protected operations
 
 The push hook blocks explicit and implicit updates or deletions of `main`, `master`, and the cached remote default branch. It resolves upstream and push configuration, bulk pushes, force variants, and Git aliases without executing alias bodies. Direct pushes remain allowed for `shunkakinoki/wiki` and `shunkakinoki/gthq`.
diff --git a/config/shared/hooks/block-gh-settings.sh b/config/shared/hooks/block-gh-settings.sh
index 0c1d62c87..7469e86ab 100755
--- a/config/shared/hooks/block-gh-settings.sh
+++ b/config/shared/hooks/block-gh-settings.sh
@@ -1,5 +1,5 @@
 #!/usr/bin/env bash
-# Shared agent guardrail for GitHub repository control-plane mutations.
+# Shared Codex/Claude/Cursor/Factory Droid agent guardrail for GitHub repository control-plane mutations.
 # This is an early warning only; restricted credentials and server-side
 # rulesets are the authoritative enforcement boundary.
 
diff --git a/config/shared/hooks/block-git-push.sh b/config/shared/hooks/block-git-push.sh
index e3eb5a5eb..fcf65c921 100755
--- a/config/shared/hooks/block-git-push.sh
+++ b/config/shared/hooks/block-git-push.sh
@@ -1,5 +1,5 @@
 #!/usr/bin/env bash
-# Shared agent guardrail for pushes to protected default branches.
+# Shared Codex/Claude/Cursor/Factory Droid agent guardrail for pushes to protected default branches.
 # This is an early warning only; remote rulesets and restricted credentials are
 # the authoritative enforcement boundary.
 
diff --git a/config/shared/hooks/secret-guard.sh b/config/shared/hooks/secret-guard.sh
index 10e954cd9..dd3df7435 100755
--- a/config/shared/hooks/secret-guard.sh
+++ b/config/shared/hooks/secret-guard.sh
@@ -1,5 +1,5 @@
 #!/usr/bin/env bash
-# Shared PreToolUse hook for Claude Code and Codex Write/Edit operations.
+# Shared PreToolUse hook for Claude Code, Codex, and Factory Droid Write/Edit operations.
 # Blocks writes containing secrets detected by gitleaks.
 # See: https://zenn.dev/takna/articles/secret-leak-prevention-4-layer
 set -euo pipefail
diff --git a/config/shared/hooks/security.sh b/config/shared/hooks/security.sh
index f840cff1e..43ce40312 100755
--- a/config/shared/hooks/security.sh
+++ b/config/shared/hooks/security.sh
@@ -1,6 +1,6 @@
 #!/usr/bin/env bash
 
-# Shared Codex/Copilot/Cursor/Grok Security Hook
+# Shared Codex/Copilot/Cursor/Factory Droid/Grok Security Hook
 # Blocks dangerous Bash commands by checking against deny patterns.
 # Returns exit code 2 to block, exit code 0 to allow.
 #
@@ -26,7 +26,7 @@ input=$(cat)
 # Cursor sends only .command without a tool_name → empty passes through.
 tool_name=$(echo "$input" | jq -r '.tool.name // .tool_name // .toolName // empty' 2>/dev/null)
 case "$tool_name" in
-"" | Bash | bash | shell) ;;
+"" | Bash | bash | Execute | execute | shell) ;;
 *) exit 0 ;;
 esac
 
diff --git a/models.json b/models.json
index 5775c1798..1ccffad42 100644
--- a/models.json
+++ b/models.json
@@ -16,6 +16,7 @@
   "glm": "glm-4.7",
   "minimax": "minimax-m3",
   "gemma": "gemma-4-31b-it",
+  "gemma-local": "gemma3:4b",
   "kimi": "kimi-k3",
   "qwen": "qwen3.6-plus",
   "qwen-local": "qwen3.5-0.8b-optiq"
diff --git a/scripts/llm-update.sh b/scripts/llm-update.sh
index 3a68d0f78..7faf5e0ca 100755
--- a/scripts/llm-update.sh
+++ b/scripts/llm-update.sh
@@ -96,6 +96,7 @@ declare -A TEMPLATES=(
   ["config/codex/config.tpl.toml"]=config/codex/config.toml
   ["config/cliproxyapi/config.tpl.yaml"]=config/cliproxyapi/config.template.yaml
   ["config/handy/settings_store.tpl.json"]=config/handy/settings_store.template.json
+  ["config/factory/settings.tpl.json"]=config/factory/settings.json
   ["config/hermes/config.tpl.yaml"]=config/hermes/config.template.yaml
   ["config/omp/config.tpl.yml"]=config/omp/config.yml
   ["config/pi/models.tpl.json"]=config/pi/models.json