diff --git a/.env.example b/.env.example
new file mode 100644
index 0000000..3ad96fb
--- /dev/null
+++ b/.env.example
@@ -0,0 +1,17 @@
+# Copy to .env for local development. Both files are gitignored.
+
+# host:port to bind. Default 127.0.0.1:3000 — switch to 0.0.0.0:3000
+# when running inside a container or behind a reverse proxy on a LAN.
+WAVEFLOW_BIND=127.0.0.1:3000
+
+# Per-request timeout enforced by the tower-http TimeoutLayer.
+# Default 30 s. The streaming endpoint (1.e) is mounted on a separate
+# router without this layer.
+WAVEFLOW_REQUEST_TIMEOUT_SECS=30
+
+# Logging.
+#   RUST_LOG syntax: `info,waveflow_server=debug,tower_http=debug`.
+#   WAVEFLOW_LOG_FORMAT=json switches to JSON output. Anything else =
+#   pretty (the default).
+RUST_LOG=info,waveflow_server=debug,tower_http=debug
+# WAVEFLOW_LOG_FORMAT=json
diff --git a/Cargo.lock b/Cargo.lock
index 7289f12..1ea421c 100644
--- a/Cargo.lock
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+checksum = "8fd425244944f4ab65ccff928e7323354c5a018c75838362fdce749dfad2ee1e"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn",
+]
+
+[[package]]
+name = "zerofrom"
+version = "0.1.8"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0ec05a11813ea801ff6d75110ad09cd0824ddba17dfe17128ea0d5f68e6c5272"
+dependencies = [
+ "zerofrom-derive",
+]
+
+[[package]]
+name = "zerofrom-derive"
+version = "0.1.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "11532158c46691caf0f2593ea8358fed6bbf68a0315e80aae9bd41fbade684a1"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn",
+ "synstructure",
+]
+
+[[package]]
+name = "zeroize"
+version = "1.8.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b97154e67e32c85465826e8bcc1c59429aaaf107c1e4a9e53c8d8ccd5eff88d0"
+
+[[package]]
+name = "zerotrie"
+version = "0.2.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0f9152d31db0792fa83f70fb2f83148effb5c1f5b8c7686c3459e361d9bc20bf"
+dependencies = [
+ "displaydoc",
+ "yoke",
+ "zerofrom",
+]
+
+[[package]]
+name = "zerovec"
+version = "0.11.6"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "90f911cbc359ab6af17377d242225f4d75119aec87ea711a880987b18cd7b239"
+dependencies = [
+ "yoke",
+ "zerofrom",
+ "zerovec-derive",
+]
+
+[[package]]
+name = "zerovec-derive"
+version = "0.11.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "625dc425cab0dca6dc3c3319506e6593dcb08a9f387ea3b284dbd52a92c40555"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn",
+]
+
+[[package]]
+name = "zmij"
+version = "1.0.21"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b8848ee67ecc8aedbaf3e4122217aff892639231befc6a1b58d29fff4c2cabaa"
diff --git a/Cargo.toml b/Cargo.toml
index 4082911..1e3e665 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -14,6 +14,42 @@ homepage = "https://waveflow.app"
 # scaffolding window.
 
 [dependencies]
+# HTTP layer. axum 0.8 is the line current for Tokio 1.45+ — the same
+# generation used by the desktop's reqwest 0.12, so we're not pulling
+# two competing hyper trees once `waveflow-core` lands as a dependency
+# in 1.b.2.
+axum = "0.8"
+tokio = { version = "1", features = ["macros", "rt-multi-thread", "signal"] }
+tower = "0.5"
+tower-http = { version = "0.6", features = ["trace", "request-id", "timeout", "util"] }
+
+# Structured logging. `tracing-subscriber` reads `RUST_LOG`; the binary
+# wires JSON output when `WAVEFLOW_LOG_FORMAT=json` is set (CI / prod),
+# pretty output otherwise (dev).
+tracing = "0.1"
+tracing-subscriber = { version = "0.3", features = ["env-filter", "json"] }
+
+# Loaded at boot from `.env` if present, else env vars only. dotenvy is
+# the maintained successor to `dotenv` (the original crate was archived
+# in 2020); it stays inert in release builds where there's no `.env`.
+dotenvy = "0.15"
+
+# Typed serialization for the JSON responses; same crate / version pair
+# the desktop app uses so a future shared response type stays cheap.
+serde = { version = "1", features = ["derive"] }
+serde_json = "1"
+
+# Error chaining at boundaries (main, Config::from_env, integration
+# tests). Internal modules should prefer `thiserror`-typed errors
+# once we have a domain richer than "boot failed"; anyhow's flexibility
+# is what we want at the binary edge.
+anyhow = "1"
+
+[dev-dependencies]
+# In-process integration tests: spawn the app on a random port, hit it
+# with reqwest, assert on responses. Same crate the desktop uses for
+# its outbound clients so the version is unified.
+reqwest = { version = "0.12", default-features = false, features = ["json", "rustls-tls"] }
 
 [profile.release]
 # Match the desktop app's release profile so behaviour parity holds at
diff --git a/src/api/health.rs b/src/api/health.rs
new file mode 100644
index 0000000..f105eac
--- /dev/null
+++ b/src/api/health.rs
@@ -0,0 +1,34 @@
+//! GET /health — liveness probe.
+//!
+//! Deliberately minimal: this endpoint must succeed even if every
+//! downstream dependency (Postgres, plugin runtime, …) is broken.
+//! Health-aware probes (readiness) get their own dedicated endpoint
+//! `GET /ready` once we have downstream state to verify; for now the
+//! server has no state, so the two would be identical and we ship
+//! just the cheaper one.
+//!
+//! Returns the binary's compile-time `CARGO_PKG_VERSION` so a load
+//! balancer's healthcheck log can correlate "node restarted" with
+//! "node upgraded".
+
+use axum::{routing::get, Json, Router};
+use serde::Serialize;
+
+const VERSION: &str = env!("CARGO_PKG_VERSION");
+
+#[derive(Debug, Serialize)]
+struct HealthResponse {
+    status: &'static str,
+    version: &'static str,
+}
+
+pub fn router() -> Router {
+    Router::new().route("/health", get(health))
+}
+
+async fn health() -> Json<HealthResponse> {
+    Json(HealthResponse {
+        status: "ok",
+        version: VERSION,
+    })
+}
diff --git a/src/api/mod.rs b/src/api/mod.rs
new file mode 100644
index 0000000..062ce2a
--- /dev/null
+++ b/src/api/mod.rs
@@ -0,0 +1,20 @@
+//! HTTP API surface.
+//!
+//! The router is split per-resource so new endpoints land in their own
+//! file: `health.rs` covers liveness, future modules will cover
+//! `profiles`, `libraries`, `tracks`, `playlists`, `auth`, `sync`,
+//! `stream` (per RFC-001 §6 / §7).
+//!
+//! Versioning policy: every resource module mounts under `/api/v1/`
+//! (except `/health` which is unversioned by convention — it's an
+//! infrastructure probe, not part of the public API contract).
+
+use axum::Router;
+
+mod health;
+
+/// Combined router for every API module. Mounted at the root by
+/// [`crate::app`]; sub-routers prefix their own paths.
+pub fn router() -> Router {
+    Router::new().merge(health::router())
+}
diff --git a/src/config.rs b/src/config.rs
new file mode 100644
index 0000000..14a3e42
--- /dev/null
+++ b/src/config.rs
@@ -0,0 +1,59 @@
+//! Server configuration loaded once at boot from environment variables
+//! (with a `.env` fallback in dev, see `main.rs`).
+//!
+//! Each field carries the env var name in its doc comment so a reader
+//! browsing this struct sees the full configuration surface in one
+//! place. Add new entries here when introducing a tunable; don't read
+//! from `std::env` in module code.
+
+use std::net::SocketAddr;
+
+/// Process-wide configuration. Construct once at boot via [`Config::from_env`]
+/// and pass into [`crate::app`].
+#[derive(Debug, Clone)]
+pub struct Config {
+    /// `WAVEFLOW_BIND` — `host:port` the server binds to.
+    /// Default: `127.0.0.1:3000`.
+    ///
+    /// Bind to `0.0.0.0:3000` in container / systemd deploys; the
+    /// loopback default avoids exposing a dev instance to the LAN by
+    /// accident.
+    pub bind_addr: SocketAddr,
+
+    /// `WAVEFLOW_REQUEST_TIMEOUT_SECS` — per-request timeout enforced
+    /// by the tower-http TimeoutLayer. Default: 30 seconds.
+    ///
+    /// 30 s is comfortable for the CRUD endpoints planned in 1.b.2.
+    /// The streaming endpoint (1.e) will live behind a separate router
+    /// without this layer so range requests can run for the full
+    /// duration of a track.
+    pub request_timeout_secs: u64,
+}
+
+impl Config {
+    pub fn from_env() -> anyhow::Result<Self> {
+        let bind_addr = std::env::var("WAVEFLOW_BIND")
+            .as_deref()
+            .unwrap_or("127.0.0.1:3000")
+            .parse()
+            .map_err(|e| anyhow::anyhow!("invalid WAVEFLOW_BIND: {e}"))?;
+
+        let request_timeout_secs = std::env::var("WAVEFLOW_REQUEST_TIMEOUT_SECS")
+            .ok()
+            .map(|s| s.parse::<u64>())
+            .transpose()
+            .map_err(|e| anyhow::anyhow!("invalid WAVEFLOW_REQUEST_TIMEOUT_SECS: {e}"))?
+            .unwrap_or(30);
+
+        // Zero would make every request time out before the handler
+        // runs. Fail fast at boot rather than silently 408 every call.
+        if request_timeout_secs == 0 {
+            anyhow::bail!("invalid WAVEFLOW_REQUEST_TIMEOUT_SECS: must be > 0");
+        }
+
+        Ok(Self {
+            bind_addr,
+            request_timeout_secs,
+        })
+    }
+}
diff --git a/src/lib.rs b/src/lib.rs
new file mode 100644
index 0000000..f47aaa5
--- /dev/null
+++ b/src/lib.rs
@@ -0,0 +1,76 @@
+//! waveflow-server library entrypoint.
+//!
+//! The public API is intentionally tight: callers (the binary in
+//! `main.rs` + integration tests) construct a [`Config`] and obtain a
+//! ready-to-serve axum router via [`app`]. Internal modules stay
+//! private until something outside this crate needs them.
+//!
+//! The full architectural intent lives in [RFC-001][rfc] — read that
+//! before opening a PR that adds a new module.
+//!
+//! [rfc]: https://github.com/InstaZDLL/WaveFlow/blob/main/docs/rfcs/RFC-001-waveflow-server.md
+
+use axum::{extract::Request, Router};
+use std::time::Duration;
+use tower::ServiceBuilder;
+use tower_http::{
+    request_id::{MakeRequestUuid, PropagateRequestIdLayer, SetRequestIdLayer},
+    trace::TraceLayer,
+};
+use tracing::field::Empty;
+
+pub mod api;
+pub mod config;
+
+pub use config::Config;
+
+/// Header used for inbound + propagated request IDs. UUIDv4 by default
+/// (via `MakeRequestUuid`), but a client / upstream proxy can supply
+/// its own — useful for stitching traces across multiple services.
+const REQUEST_ID_HEADER: &str = "x-request-id";
+
+/// Build the axum router. Wired with:
+/// - per-request UUID via `x-request-id` (generated if absent, echoed back).
+/// - structured access logging keyed on the request id.
+/// - configurable timeout (default 30 s, set via `WAVEFLOW_REQUEST_TIMEOUT_SECS`).
+///
+/// The router doesn't carry runtime state in 1.b.1 — `Config` is
+/// consumed at build time. When sqlx pools land in 1.b.2 they'll be
+/// wired here as `Router::with_state`.
+pub fn app(config: Config) -> Router {
+    let middleware = ServiceBuilder::new()
+        .layer(SetRequestIdLayer::new(
+            axum::http::HeaderName::from_static(REQUEST_ID_HEADER),
+            MakeRequestUuid,
+        ))
+        // Custom span builder so every emitted trace carries the
+        // request id as a structured field. The default `MakeSpan`
+        // doesn't include headers at all; `include_headers(true)` would
+        // dump *every* header (incl. Authorization / Cookie) into log
+        // sinks, which is the opposite of what we want. Extract just
+        // the one field we care about.
+        .layer(TraceLayer::new_for_http().make_span_with(|req: &Request| {
+            let request_id = req
+                .headers()
+                .get(REQUEST_ID_HEADER)
+                .and_then(|v| v.to_str().ok())
+                .unwrap_or("");
+            tracing::info_span!(
+                "http_request",
+                method = %req.method(),
+                uri = %req.uri(),
+                version = ?req.version(),
+                request_id = %request_id,
+                status = Empty,
+            )
+        }))
+        .layer(PropagateRequestIdLayer::new(
+            axum::http::HeaderName::from_static(REQUEST_ID_HEADER),
+        ))
+        .layer(tower_http::timeout::TimeoutLayer::with_status_code(
+            axum::http::StatusCode::REQUEST_TIMEOUT,
+            Duration::from_secs(config.request_timeout_secs),
+        ));
+
+    Router::new().merge(api::router()).layer(middleware)
+}
diff --git a/src/main.rs b/src/main.rs
index 61ea5cc..98e700d 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -1,13 +1,86 @@
-//! waveflow-server — bootstrap entry point.
+//! waveflow-server binary entrypoint.
 //!
-//! Phase 1.b will replace this with an axum app exposing `/health`,
-//! `/api/v1/*` CRUD over Postgres, and the JWKS-verified auth
-//! middleware described in RFC-001 §6.4. For now the binary just
-//! prints a banner so CI has something to compile, lint and test.
-
-fn main() {
-    println!("waveflow-server bootstrap — Phase 1.b not implemented yet.");
-    println!(
-        "See https://github.com/InstaZDLL/WaveFlow/blob/main/docs/rfcs/RFC-001-waveflow-server.md"
-    );
+//! Wires the runtime: load `.env`, install tracing, build the axum
+//! router from [`waveflow_server::app`], bind, and serve until SIGINT.
+//! The router itself lives behind a library entry point so integration
+//! tests can spawn the same app in-process without re-creating the
+//! plumbing.
+
+use std::net::SocketAddr;
+
+use tokio::signal;
+use tracing::info;
+use tracing_subscriber::{fmt, prelude::*, EnvFilter};
+
+use waveflow_server::{app, config::Config};
+
+#[tokio::main]
+async fn main() -> anyhow::Result<()> {
+    // `.env` is dev-only and best-effort. In release deploys env vars
+    // come from the systemd unit / container; the dotenv miss is the
+    // expected path and we don't log it.
+    let _ = dotenvy::dotenv();
+
+    init_tracing();
+
+    let config = Config::from_env()?;
+    let listener = tokio::net::TcpListener::bind(config.bind_addr).await?;
+    let local = listener.local_addr()?;
+    info!(addr = %local, "waveflow-server listening");
+
+    axum::serve(
+        listener,
+        app(config).into_make_service_with_connect_info::<SocketAddr>(),
+    )
+    .with_graceful_shutdown(shutdown_signal())
+    .await?;
+
+    info!("waveflow-server shut down cleanly");
+    Ok(())
+}
+
+/// Install a `tracing` subscriber. `RUST_LOG` controls verbosity (we
+/// fall back to `info` for the binary's own crates). `WAVEFLOW_LOG_FORMAT=json`
+/// switches to JSON for log aggregators; anything else stays on the
+/// pretty terminal formatter used in dev.
+fn init_tracing() {
+    let filter = EnvFilter::try_from_default_env()
+        .unwrap_or_else(|_| EnvFilter::new("info,waveflow_server=debug,tower_http=debug"));
+
+    let json_mode = std::env::var("WAVEFLOW_LOG_FORMAT")
+        .map(|v| v.eq_ignore_ascii_case("json"))
+        .unwrap_or(false);
+
+    let registry = tracing_subscriber::registry().with(filter);
+    if json_mode {
+        registry.with(fmt::layer().json()).init();
+    } else {
+        registry.with(fmt::layer().compact()).init();
+    }
+}
+
+/// Wait for SIGINT (Ctrl+C) or SIGTERM (systemd / container stop).
+/// On Windows we only listen for Ctrl+C — SIGTERM doesn't exist there.
+async fn shutdown_signal() {
+    let ctrl_c = async {
+        signal::ctrl_c()
+            .await
+            .expect("failed to install Ctrl+C handler");
+    };
+
+    #[cfg(unix)]
+    let terminate = async {
+        signal::unix::signal(signal::unix::SignalKind::terminate())
+            .expect("failed to install SIGTERM handler")
+            .recv()
+            .await;
+    };
+
+    #[cfg(not(unix))]
+    let terminate = std::future::pending::<()>();
+
+    tokio::select! {
+        _ = ctrl_c => info!("SIGINT received, shutting down"),
+        _ = terminate => info!("SIGTERM received, shutting down"),
+    }
 }
diff --git a/tests/health.rs b/tests/health.rs
new file mode 100644
index 0000000..7063d9f
--- /dev/null
+++ b/tests/health.rs
@@ -0,0 +1,97 @@
+//! End-to-end smoke test for the /health endpoint.
+//!
+//! Spawns the actual axum app on a kernel-assigned port, fires a
+//! reqwest call at it, and validates the response shape. This is the
+//! template for every future endpoint test — it confirms that the
+//! router wiring + middleware stack actually reach the handler, not
+//! just that the handler compiles.
+
+use std::net::SocketAddr;
+
+use serde_json::Value;
+use waveflow_server::{app, Config};
+
+#[tokio::test]
+async fn health_returns_ok_with_version() {
+    // `127.0.0.1:0` lets the kernel hand us a free port — concurrent
+    // test runs (cargo's default behaviour) don't collide.
+    let listener = tokio::net::TcpListener::bind("127.0.0.1:0").await.unwrap();
+    let addr = listener.local_addr().unwrap();
+
+    let config = Config {
+        bind_addr: addr,
+        request_timeout_secs: 5,
+    };
+
+    // Serve in the background. The test holds no handle on the task —
+    // it drops at process exit, which is fine for a one-shot test.
+    let app = app(config);
+    tokio::spawn(async move {
+        axum::serve(
+            listener,
+            app.into_make_service_with_connect_info::<SocketAddr>(),
+        )
+        .await
+        .unwrap();
+    });
+
+    let client = reqwest::Client::new();
+    let body: Value = client
+        .get(format!("http://{addr}/health"))
+        .send()
+        .await
+        .expect("request failed")
+        .error_for_status()
+        .expect("non-2xx response")
+        .json()
+        .await
+        .expect("invalid JSON");
+
+    assert_eq!(body["status"], "ok");
+    let version = body["version"].as_str().expect("version missing");
+    assert!(
+        !version.is_empty(),
+        "version should mirror CARGO_PKG_VERSION"
+    );
+}
+
+#[tokio::test]
+async fn health_propagates_inbound_request_id() {
+    let listener = tokio::net::TcpListener::bind("127.0.0.1:0").await.unwrap();
+    let addr = listener.local_addr().unwrap();
+
+    let config = Config {
+        bind_addr: addr,
+        request_timeout_secs: 5,
+    };
+
+    let app = app(config);
+    tokio::spawn(async move {
+        axum::serve(
+            listener,
+            app.into_make_service_with_connect_info::<SocketAddr>(),
+        )
+        .await
+        .unwrap();
+    });
+
+    let provided = "test-request-id-1234";
+    let resp = reqwest::Client::new()
+        .get(format!("http://{addr}/health"))
+        .header("x-request-id", provided)
+        .send()
+        .await
+        .expect("request failed");
+
+    let echoed = resp
+        .headers()
+        .get("x-request-id")
+        .expect("server dropped x-request-id")
+        .to_str()
+        .unwrap();
+
+    assert_eq!(
+        echoed, provided,
+        "server must echo a client-supplied request id verbatim"
+    );
+}