diff --git a/harness/tui-client.lisp b/harness/tui-client.lisp
index 8811dd6..0bca04f 100644
--- a/harness/tui-client.lisp
+++ b/harness/tui-client.lisp
@@ -75,33 +75,73 @@
     (when (string= cmd "/exit") (setf *is-running* nil))
     (when (string= cmd "/clear") (setf *chat-history* nil))))
 
+(defun start-background-reader (stream)
+  "Starts a thread that reads framed messages from the daemon stream."
+  (bt:make-thread
+   (lambda ()
+     (loop while *is-running* do
+       (handler-case
+           (let* ((len-buf (make-string 6))
+                  (count (read-sequence len-buf stream)))
+             (when (= count 6)
+               (let* ((msg-len (parse-integer len-buf :radix 16))
+                      (msg-buf (make-string msg-len)))
+                 (read-sequence msg-buf stream)
+                 (let ((msg (read-from-string msg-buf)))
+                   (let ((payload (getf msg :payload)))
+                     (cond
+                       ((eq (getf payload :action) :handshake)
+                        (enqueue-msg "* Connected to daemon *"))
+                       ((and (eq (getf payload :sensor) :loop-error)
+                             (not (string= (or (getf payload :message) "") "Neural Cascade Failure: All providers exhausted.")))
+                        (enqueue-msg (format nil "ERROR: Daemon loop error (~a)"
+                                             (getf payload :message))))
+                       (t
+                        (let ((text (or (getf payload :text) (format nil "~a" payload))))
+                          (enqueue-msg (format nil "⬇ ~a" text)))))))))
+         (error (c)
+           (when *is-running*
+             (enqueue-msg (format nil "ERROR: Connection lost (~a)" c))
+             (setf *is-running* nil))))))
+   :name "opencortex-tui-reader"))
+
 (defun main ()
   (handler-case
       (setf *socket* (usocket:socket-connect *daemon-host* *daemon-port*))
     (error (e) (format t "Offline: ~a~%" e) (return-from main)))
   (setf *stream* (usocket:socket-stream *socket*))
   
+  ;; Guard: Croatoan needs a real terminal (TERM env var, real TTY)
+  (unless (uiop:getenv "TERM")
+    (format t "TUI requires a terminal. Set TERM environment variable.~%")
+    (format t "Or use: echo 'your message' | nc localhost 9105~%")
+    (return-from main))
+  
   (unwind-protect
-      (with-screen (scr :input-echoing nil :input-blocking nil :enable-colors t)
-        (let* ((h (height scr)) (w (width scr)))
-          (let ((chat-win (make-instance 'window :height (- h 5) :width (- w 2) :position '(1 1) :border t))
-                (input-win (make-instance 'window :height 1 :width (- w 2) :position (list (- h 2) 1) :border t)))
-          (setf (input-blocking input-win) nil)
-          (loop :while *is-running* :do
-            (let ((msgs (dequeue-msgs)))
-              (when msgs 
-                (dolist (m msgs) (push m *chat-history*))
-                (render-chat chat-win)))
-            (let* ((ev (get-event input-win))
-                   (ch (when (and ev (typep ev 'event)) (event-key ev))))
-              (when ch
-                (cond
-                  ((or (eq ch #\Newline) (eq ch #\Return)) (handle-return *stream*))
-                  ((or (eq ch :backspace) (eq ch (code-char 127))) (handle-backspace))
-                  ((characterp ch) (vector-push-extend ch *input-buffer*))))
-              (clear input-win)
-              (add-string input-win (format nil "▶ ~a" (coerce *input-buffer* 'string)) :y 0 :x 1)
-              (refresh input-win))
-            (sleep 0.02)))))
+      (handler-case
+          (with-screen (scr :input-echoing nil :input-blocking nil :enable-colors t)
+            (let* ((h (height scr)) (w (width scr)))
+              (let ((chat-win (make-instance 'window :height (- h 5) :width (- w 2) :position '(1 1) :border t))
+                    (input-win (make-instance 'window :height 1 :width (- w 2) :position (list (- h 2) 1) :border t)))
+                (setf (input-blocking input-win) nil)
+                (start-background-reader *stream*)
+                (loop :while *is-running* :do
+                  (let ((msgs (dequeue-msgs)))
+                    (when msgs 
+                      (dolist (m msgs) (push m *chat-history*))
+                      (render-chat chat-win)))
+                  (let* ((ev (get-event input-win))
+                         (ch (when (and ev (typep ev 'event)) (event-key ev))))
+                    (when ch
+                      (cond
+                        ((or (eq ch #\Newline) (eq ch #\Return)) (handle-return *stream*))
+                        ((or (eq ch :backspace) (eq ch (code-char 127))) (handle-backspace))
+                        ((characterp ch) (vector-push-extend ch *input-buffer*))))
+                    (clear input-win)
+                    (add-string input-win (format nil "▶ ~a" (coerce *input-buffer* 'string)) :y 0 :x 1)
+                    (refresh input-win))
+                  (sleep 0.02)))))
+        (error (c)
+          (format t "TUI Error: ~a~%" c)))
     (setf *is-running* nil)
     (when *socket* (ignore-errors (usocket:socket-close *socket*)))))
diff --git a/harness/tui-client.org b/harness/tui-client.org
index ae528b7..45163e7 100644
--- a/harness/tui-client.org
+++ b/harness/tui-client.org
@@ -126,6 +126,39 @@ The OpenCortex TUI Client is a standalone Common Lisp application built on **Cro
     (when (string= cmd "/clear") (setf *chat-history* nil))))
 #+end_src
 
+** Background Reader
+#+begin_src lisp
+(defun start-background-reader (stream)
+  "Starts a thread that reads framed messages from the daemon stream."
+  (bt:make-thread
+   (lambda ()
+     (loop while *is-running* do
+       (handler-case
+           (let* ((len-buf (make-string 6))
+                  (count (read-sequence len-buf stream)))
+             (when (= count 6)
+               (let* ((msg-len (parse-integer len-buf :radix 16))
+                      (msg-buf (make-string msg-len)))
+                 (read-sequence msg-buf stream)
+                 (let ((msg (read-from-string msg-buf)))
+                   (let ((payload (getf msg :payload)))
+                     (cond
+                       ((eq (getf payload :action) :handshake)
+                        (enqueue-msg "* Connected to daemon *"))
+                       ((and (eq (getf payload :sensor) :loop-error)
+                             (not (string= (or (getf payload :message) "") "Neural Cascade Failure: All providers exhausted.")))
+                        (enqueue-msg (format nil "ERROR: Daemon loop error (~a)"
+                                             (getf payload :message))))
+                       (t
+                        (let ((text (or (getf payload :text) (format nil "~a" payload))))
+                          (enqueue-msg (format nil "⬇ ~a" text)))))))))
+         (error (c)
+           (when *is-running*
+             (enqueue-msg (format nil "ERROR: Connection lost (~a)" c))
+             (setf *is-running* nil))))))
+   :name "opencortex-tui-reader"))
+#+end_src
+
 ** Main Entry Point
 #+begin_src lisp
 (defun main ()
@@ -134,28 +167,38 @@ The OpenCortex TUI Client is a standalone Common Lisp application built on **Cro
     (error (e) (format t "Offline: ~a~%" e) (return-from main)))
   (setf *stream* (usocket:socket-stream *socket*))
   
+  ;; Guard: Croatoan needs a real terminal (TERM env var, real TTY)
+  (unless (uiop:getenv "TERM")
+    (format t "TUI requires a terminal. Set TERM environment variable.~%")
+    (format t "Or use: echo 'your message' | nc localhost 9105~%")
+    (return-from main))
+  
   (unwind-protect
-      (with-screen (scr :input-echoing nil :input-blocking nil :enable-colors t)
-        (let* ((h (height scr)) (w (width scr)))
-          (let ((chat-win (make-instance 'window :height (- h 5) :width (- w 2) :position '(1 1) :border t))
-                (input-win (make-instance 'window :height 1 :width (- w 2) :position (list (- h 2) 1) :border t)))
-          (setf (input-blocking input-win) nil)
-          (loop :while *is-running* :do
-            (let ((msgs (dequeue-msgs)))
-              (when msgs 
-                (dolist (m msgs) (push m *chat-history*))
-                (render-chat chat-win)))
-            (let* ((ev (get-event input-win))
-                   (ch (when (and ev (typep ev 'event)) (event-key ev))))
-              (when ch
-                (cond
-                  ((or (eq ch #\Newline) (eq ch #\Return)) (handle-return *stream*))
-                  ((or (eq ch :backspace) (eq ch (code-char 127))) (handle-backspace))
-                  ((characterp ch) (vector-push-extend ch *input-buffer*))))
-              (clear input-win)
-              (add-string input-win (format nil "▶ ~a" (coerce *input-buffer* 'string)) :y 0 :x 1)
-              (refresh input-win))
-            (sleep 0.02)))))
+      (handler-case
+          (with-screen (scr :input-echoing nil :input-blocking nil :enable-colors t)
+            (let* ((h (height scr)) (w (width scr)))
+              (let ((chat-win (make-instance 'window :height (- h 5) :width (- w 2) :position '(1 1) :border t))
+                    (input-win (make-instance 'window :height 1 :width (- w 2) :position (list (- h 2) 1) :border t)))
+                (setf (input-blocking input-win) nil)
+                (start-background-reader *stream*)
+                (loop :while *is-running* :do
+                  (let ((msgs (dequeue-msgs)))
+                    (when msgs 
+                      (dolist (m msgs) (push m *chat-history*))
+                      (render-chat chat-win)))
+                  (let* ((ev (get-event input-win))
+                         (ch (when (and ev (typep ev 'event)) (event-key ev))))
+                    (when ch
+                      (cond
+                        ((or (eq ch #\Newline) (eq ch #\Return)) (handle-return *stream*))
+                        ((or (eq ch :backspace) (eq ch (code-char 127))) (handle-backspace))
+                        ((characterp ch) (vector-push-extend ch *input-buffer*))))
+                    (clear input-win)
+                    (add-string input-win (format nil "▶ ~a" (coerce *input-buffer* 'string)) :y 0 :x 1)
+                    (refresh input-win))
+                  (sleep 0.02)))))
+        (error (c)
+          (format t "TUI Error: ~a~%" c)))
     (setf *is-running* nil)
     (when *socket* (ignore-errors (usocket:socket-close *socket*)))))
 #+end_src