diff --git a/Makefile b/Makefile
index 5a0bb1a163..29f9a4f332 100644
--- a/Makefile
+++ b/Makefile
@@ -139,7 +139,9 @@ VERSION_FILES := Cargo.toml \
                  bindings/golang/Cargo.toml \
                  bindings/python/Cargo.toml \
                  bindings/python/pyproject.toml \
-                 bindings/python/src/smg/version.py
+                 bindings/python/src/smg/version.py \
+                 grpc_client/python/pyproject.toml \
+                 grpc_client/python/smg_grpc_proto/__init__.py
 
 show-version: ## Show current version across all files
 	@echo "Current versions:"
@@ -148,6 +150,8 @@ show-version: ## Show current version across all files
 	@echo "  bindings/python/Cargo.toml: $$(grep -m1 '^version = ' bindings/python/Cargo.toml | sed 's/version = "\(.*\)"/\1/')"
 	@echo "  bindings/python/pyproject.toml: $$(grep -m1 '^version = ' bindings/python/pyproject.toml | sed 's/version = "\(.*\)"/\1/')"
 	@echo "  bindings/python/.../version.py: $$(grep '__version__' bindings/python/src/smg/version.py | sed 's/__version__ = "\(.*\)"/\1/')"
+	@echo "  grpc_client/python/pyproject.toml: $$(grep -m1 '^version = ' grpc_client/python/pyproject.toml | sed 's/version = "\(.*\)"/\1/')"
+	@echo "  grpc_client/python/.../__init__.py: $$(grep '__version__' grpc_client/python/smg_grpc_proto/__init__.py | sed 's/__version__ = "\(.*\)"/\1/')"
 
 bump-version: ## Bump version across all files (usage: make bump-version VERSION=0.3.3)
 	@if [ -z "$(VERSION)" ]; then \
@@ -169,12 +173,18 @@ bump-version: ## Bump version across all files (usage: make bump-version VERSION
 	@sed -i.bak 's/^version = ".*"/version = "$(VERSION)"/' bindings/python/pyproject.toml && rm -f bindings/python/pyproject.toml.bak
 	@# Update version.py
 	@sed -i.bak 's/__version__ = ".*"/__version__ = "$(VERSION)"/' bindings/python/src/smg/version.py && rm -f bindings/python/src/smg/version.py.bak
+	@# Update grpc_client/python/pyproject.toml
+	@sed -i.bak 's/^version = ".*"/version = "$(VERSION)"/' grpc_client/python/pyproject.toml && rm -f grpc_client/python/pyproject.toml.bak
+	@# Update grpc_client/python/smg_grpc_proto/__init__.py
+	@sed -i.bak 's/__version__ = ".*"/__version__ = "$(VERSION)"/' grpc_client/python/smg_grpc_proto/__init__.py && rm -f grpc_client/python/smg_grpc_proto/__init__.py.bak
 	@echo "Version updated to $(VERSION) in all files:"
 	@echo "  - Cargo.toml"
 	@echo "  - bindings/golang/Cargo.toml"
 	@echo "  - bindings/python/Cargo.toml"
 	@echo "  - bindings/python/pyproject.toml"
 	@echo "  - bindings/python/src/smg/version.py"
+	@echo "  - grpc_client/python/pyproject.toml"
+	@echo "  - grpc_client/python/smg_grpc_proto/__init__.py"
 	@echo ""
 	@echo "Verify with: make show-version"
 
diff --git a/grpc_client/python/.gitignore b/grpc_client/python/.gitignore
new file mode 100644
index 0000000000..bd1bb57dcc
--- /dev/null
+++ b/grpc_client/python/.gitignore
@@ -0,0 +1,7 @@
+# Generated stubs (created at build time)
+smg_grpc_proto/generated/
+
+# Build artifacts
+dist/
+*.egg-info/
+build/
diff --git a/grpc_client/python/README.md b/grpc_client/python/README.md
new file mode 100644
index 0000000000..7b60976a76
--- /dev/null
+++ b/grpc_client/python/README.md
@@ -0,0 +1,45 @@
+# smg-grpc-proto
+
+Protocol Buffer definitions for SMG (Shepherd Model Gateway) gRPC services.
+
+This package provides the Python gRPC stubs for:
+- **SGLang** scheduler service
+- **vLLM** engine service
+- **TRT-LLM** service
+
+## Installation
+
+```bash
+pip install smg-grpc-proto
+```
+
+## Usage
+
+```python
+from smg_grpc_proto import sglang_scheduler_pb2, sglang_scheduler_pb2_grpc
+from smg_grpc_proto import vllm_engine_pb2, vllm_engine_pb2_grpc
+from smg_grpc_proto import trtllm_service_pb2, trtllm_service_pb2_grpc
+```
+
+## Development
+
+The proto files are located in `grpc_client/proto/` in the SMG repository. A symlink at `smg_grpc_proto/proto` points to the proto source files. Python stubs are generated at build time using `grpcio-tools`.
+
+To install in editable mode:
+
+```bash
+# From repo root (symlink handles proto file discovery)
+pip install -e grpc_client/python/
+```
+
+For CI or environments where symlinks don't work:
+
+```bash
+mkdir -p grpc_client/python/smg_grpc_proto/proto
+cp grpc_client/proto/*.proto grpc_client/python/smg_grpc_proto/proto/
+pip install -e grpc_client/python/
+```
+
+## License
+
+Apache-2.0
diff --git a/grpc_client/python/pyproject.toml b/grpc_client/python/pyproject.toml
new file mode 100644
index 0000000000..dab8f3ff0c
--- /dev/null
+++ b/grpc_client/python/pyproject.toml
@@ -0,0 +1,40 @@
+[build-system]
+requires = ["setuptools>=68.0", "grpcio-tools>=1.62.0"]
+build-backend = "setuptools.build_meta"
+
+[project]
+name = "smg-grpc-proto"
+version = "0.3.2"
+description = "SMG gRPC proto definitions for SGLang, vLLM, and TRT-LLM"
+requires-python = ">=3.10"
+dependencies = [
+    "grpcio>=1.62.0",
+    "protobuf>=5.26.0",
+]
+readme = "README.md"
+license = { text = "Apache-2.0" }
+authors = [
+    {name = "Simo Lin", email = "linsimo.mark@gmail.com"},
+    {name = "Chang Su", email = "mckvtl@gmail.com"},
+    {name = "Keyang Ru", email = "rukeyang@gmail.com"}
+]
+classifiers = [
+    "Programming Language :: Python :: 3",
+    "Programming Language :: Python :: 3.10",
+    "Programming Language :: Python :: 3.11",
+    "Programming Language :: Python :: 3.12",
+    "Programming Language :: Python :: 3.13",
+    "License :: OSI Approved :: Apache Software License",
+    "Operating System :: OS Independent",
+]
+
+[project.urls]
+Homepage = "https://github.com/lightseekorg/smg"
+Repository = "https://github.com/lightseekorg/smg"
+
+[tool.setuptools.packages.find]
+where = ["."]
+include = ["smg_grpc_proto*"]
+
+[tool.setuptools.package-data]
+smg_grpc_proto = ["proto/*.proto", "generated/*.py", "generated/*.pyi"]
diff --git a/grpc_client/python/setup.py b/grpc_client/python/setup.py
new file mode 100644
index 0000000000..e55db04971
--- /dev/null
+++ b/grpc_client/python/setup.py
@@ -0,0 +1,103 @@
+"""
+Custom setup.py to generate protobuf stubs at build time.
+The generated files are NOT committed to git — they're created fresh during pip install.
+"""
+from pathlib import Path
+
+from setuptools import setup
+from setuptools.command.build_py import build_py
+from setuptools.command.develop import develop
+
+
+def compile_grpc_protos():
+    """Generate Python gRPC stubs from .proto files."""
+    package_dir = Path(__file__).parent
+    proto_dir = package_dir / "smg_grpc_proto" / "proto"
+    output_dir = package_dir / "smg_grpc_proto" / "generated"
+
+    output_dir.mkdir(parents=True, exist_ok=True)
+    (output_dir / "__init__.py").write_text(
+        '"""Auto-generated protobuf stubs. Do not edit."""\n'
+    )
+
+    proto_files = list(proto_dir.glob("*.proto"))
+    if not proto_files:
+        raise FileNotFoundError(f"No .proto files found in {proto_dir}")
+
+    # Use grpc_tools.protoc Python API (same approach as vLLM)
+    try:
+        from grpc_tools import protoc
+
+        args = [
+            "grpc_tools.protoc",
+            f"--proto_path={proto_dir}",
+            f"--python_out={output_dir}",
+            f"--grpc_python_out={output_dir}",
+            f"--pyi_out={output_dir}",  # Generate type stubs
+        ] + [str(f) for f in proto_files]
+
+        print(f"Generating protobuf stubs from {len(proto_files)} proto files...")
+        result = protoc.main(args)
+
+        if result != 0:
+            raise RuntimeError(f"protoc returned non-zero exit code: {result}")
+
+    except ImportError:
+        raise RuntimeError(
+            "grpcio-tools not installed. Install with: pip install grpcio-tools"
+        )
+
+    # Fix imports in generated files (grpcio-tools generates absolute imports)
+    # Also add mypy ignore-errors comment for generated code
+    mypy_header = "# mypy: ignore-errors\n"
+
+    for py_file in output_dir.glob("*_pb2*.py"):
+        content = py_file.read_text()
+
+        # Fix imports to be relative
+        for proto_file in proto_files:
+            module_name = proto_file.stem + "_pb2"
+            content = content.replace(
+                f"import {module_name}", f"from . import {module_name}"
+            )
+
+        # Add mypy ignore-errors if not already present
+        if not content.startswith("# mypy:"):
+            content = mypy_header + content
+
+        py_file.write_text(content)
+
+    # Also add mypy header to .pyi files
+    for pyi_file in output_dir.glob("*_pb2*.pyi"):
+        content = pyi_file.read_text()
+        if not content.startswith("# mypy:"):
+            pyi_file.write_text(mypy_header + content)
+
+    generated_count = len(list(output_dir.glob("*.py"))) + len(
+        list(output_dir.glob("*.pyi"))
+    )
+    print(f"Generated {generated_count} files (including type stubs)")
+
+
+class BuildPyWithProto(build_py):
+    """Custom build_py that generates protobuf stubs before building."""
+
+    def run(self):
+        compile_grpc_protos()
+        super().run()
+
+
+class DevelopWithProto(develop):
+    """Custom develop that generates protobuf stubs for editable installs."""
+
+    def run(self):
+        compile_grpc_protos()
+        super().run()
+
+
+setup(
+    cmdclass={
+        "build_py": BuildPyWithProto,
+        "develop": DevelopWithProto,
+    }
+)
diff --git a/grpc_client/python/smg_grpc_proto/__init__.py b/grpc_client/python/smg_grpc_proto/__init__.py
new file mode 100644
index 0000000000..eae1366cdf
--- /dev/null
+++ b/grpc_client/python/smg_grpc_proto/__init__.py
@@ -0,0 +1,27 @@
+"""SMG gRPC Proto - Protocol definitions for SGLang, vLLM, and TRT-LLM."""
+
+__version__ = "0.3.2"
+
+# Re-export generated modules for convenient access
+# These imports will work after the package is built (stubs generated at build time)
+try:
+    from smg_grpc_proto.generated import (
+        sglang_scheduler_pb2,
+        sglang_scheduler_pb2_grpc,
+        trtllm_service_pb2,
+        trtllm_service_pb2_grpc,
+        vllm_engine_pb2,
+        vllm_engine_pb2_grpc,
+    )
+
+    __all__ = [
+        "sglang_scheduler_pb2",
+        "sglang_scheduler_pb2_grpc",
+        "vllm_engine_pb2",
+        "vllm_engine_pb2_grpc",
+        "trtllm_service_pb2",
+        "trtllm_service_pb2_grpc",
+    ]
+except ImportError:
+    # During development/build, generated modules may not exist yet
+    __all__ = []
diff --git a/grpc_client/python/smg_grpc_proto/proto b/grpc_client/python/smg_grpc_proto/proto
new file mode 120000
index 0000000000..b943f93991
--- /dev/null
+++ b/grpc_client/python/smg_grpc_proto/proto
@@ -0,0 +1 @@
+../../proto
\ No newline at end of file