diff --git a/src/cursor/cursor-daemon-auth.ts b/src/cursor/cursor-daemon-auth.ts
new file mode 100644
index 00000000..23b6bd39
--- /dev/null
+++ b/src/cursor/cursor-daemon-auth.ts
@@ -0,0 +1,24 @@
+import * as crypto from 'crypto';
+import * as fs from 'fs';
+import * as path from 'path';
+
+import { getCcsDir } from '../utils/config-manager';
+
+const DAEMON_TOKEN_FILE = 'cursor-daemon-token';
+
+export function getCursorDaemonToken(): string {
+  const tokenPath = path.join(getCcsDir(), DAEMON_TOKEN_FILE);
+  try {
+    const token = fs.readFileSync(tokenPath, 'utf8').trim();
+    if (token.length > 0) {
+      return token;
+    }
+  } catch {
+    // Token file missing or unreadable; regenerate below.
+  }
+
+  const token = crypto.randomBytes(32).toString('hex');
+  fs.mkdirSync(path.dirname(tokenPath), { recursive: true });
+  fs.writeFileSync(tokenPath, token, { mode: 0o600 });
+  return token;
+}
diff --git a/src/cursor/cursor-daemon-entry.ts b/src/cursor/cursor-daemon-entry.ts
index 868121da..53e05645 100644
--- a/src/cursor/cursor-daemon-entry.ts
+++ b/src/cursor/cursor-daemon-entry.ts
@@ -108,6 +108,23 @@ function readJsonBody(req: http.IncomingMessage): Promise<unknown> {
   });
 }
 
+function hasValidDaemonToken(req: http.IncomingMessage): boolean {
+  const expectedToken = process.env.CCS_CURSOR_DAEMON_TOKEN;
+  if (!expectedToken) {
+    return false;
+  }
+
+  const provided = req.headers['x-ccs-cursor-token'];
+  if (typeof provided === 'string') {
+    return provided === expectedToken;
+  }
+
+  if (Array.isArray(provided)) {
+    return provided.includes(expectedToken);
+  }
+
+  return false;
+}
 function normalizeMessages(raw: unknown): NormalizedOpenAIMessage[] {
   if (!Array.isArray(raw)) {
     throw new Error('messages must be an array');
@@ -202,6 +219,10 @@ export function startCursorDaemonServer(options: DaemonRuntimeOptions): http.Ser
 
     try {
       if (method === 'GET' && requestUrl === '/health') {
+        if (!hasValidDaemonToken(req)) {
+          writeJson(res, 401, { error: 'Unauthorized' });
+          return;
+        }
         writeJson(res, 200, { ok: true, service: 'cursor-daemon' });
         return;
       }
@@ -234,6 +255,11 @@ export function startCursorDaemonServer(options: DaemonRuntimeOptions): http.Ser
         return;
       }
 
+      if (!hasValidDaemonToken(req)) {
+        writeJson(res, 401, { error: 'Unauthorized' });
+        return;
+      }
+
       const rawBody = await readJsonBody(req);
       const anthropicBody = isAnthropicRoute ? translateAnthropicRequest(rawBody) : undefined;
       const parsedBody = anthropicBody ?? ((rawBody as OpenAIChatRequest) || {});
diff --git a/src/cursor/cursor-daemon.ts b/src/cursor/cursor-daemon.ts
index 5c58b712..b88a2b64 100644
--- a/src/cursor/cursor-daemon.ts
+++ b/src/cursor/cursor-daemon.ts
@@ -56,7 +56,7 @@ async function resolveDaemonEntrypoint(): Promise<string | null> {
  * Check if cursor daemon is running on the specified port.
  * Uses 127.0.0.1 instead of localhost for more reliable local connections.
  */
-export async function isDaemonRunning(port: number): Promise<boolean> {
+export async function isDaemonRunning(port: number, daemonToken?: string): Promise<boolean> {
   return new Promise((resolve) => {
     const req = http.request(
       {
@@ -65,6 +65,7 @@ export async function isDaemonRunning(port: number): Promise<boolean> {
         path: '/health',
         method: 'GET',
         timeout: 3000,
+        headers: daemonToken ? { 'x-ccs-cursor-token': daemonToken } : undefined,
       },
       (res) => {
         let body = '';
@@ -127,7 +128,7 @@ export async function startDaemon(
   config: CursorDaemonConfig
 ): Promise<{ success: boolean; pid?: number; error?: string }> {
   // Check if already running
-  if (await isDaemonRunning(config.port)) {
+  if (await isDaemonRunning(config.port, config.daemon_token)) {
     logger.stage('dispatch', 'cursor.daemon.already_running', 'Cursor daemon already running', {
       provider: 'cursor',
       port: config.port,
@@ -205,6 +206,10 @@ export async function startDaemon(
       proc = spawn(process.execPath, args, {
         stdio: 'ignore',
         detached: true,
+        env: {
+          ...process.env,
+          CCS_CURSOR_DAEMON_TOKEN: config.daemon_token || '',
+        },
       });
 
       // Unref so parent can exit
@@ -220,7 +225,7 @@ export async function startDaemon(
       const pollHealth = async () => {
         attempts++;
 
-        if (await isDaemonRunning(config.port)) {
+        if (await isDaemonRunning(config.port, config.daemon_token)) {
           safeResolve({ success: true, pid: proc.pid });
         } else if (attempts >= maxAttempts) {
           // Kill orphaned process
diff --git a/src/cursor/cursor-models.ts b/src/cursor/cursor-models.ts
index 292ce5dc..384e50ae 100644
--- a/src/cursor/cursor-models.ts
+++ b/src/cursor/cursor-models.ts
@@ -8,6 +8,7 @@ import * as http from 'http';
 import type { CursorModel } from './types';
 import type { CursorApiCredentials } from './cursor-protobuf-schema';
 import { isDaemonRunning } from './cursor-daemon';
+import { getCursorDaemonToken } from './cursor-daemon-auth';
 import { buildCursorModelsHeaders } from './cursor-client-policy';
 import {
   DEFAULT_CURSOR_MODEL,
@@ -285,7 +286,7 @@ export async function fetchModelsFromDaemon(port: number): Promise<CursorModel[]
  * Checks daemon health first to avoid 5s timeout when daemon is not running.
  */
 export async function getAvailableModels(port: number): Promise<CursorModel[]> {
-  if (!(await isDaemonRunning(port))) {
+  if (!(await isDaemonRunning(port, getCursorDaemonToken()))) {
     return DEFAULT_CURSOR_MODELS;
   }
   return fetchModelsFromDaemon(port);
diff --git a/src/cursor/cursor-profile-executor.ts b/src/cursor/cursor-profile-executor.ts
index e2b9b531..03d4d139 100644
--- a/src/cursor/cursor-profile-executor.ts
+++ b/src/cursor/cursor-profile-executor.ts
@@ -15,6 +15,7 @@ import { getImageAnalysisHookEnv, resolveImageAnalysisRuntimeStatus } from '../u
 import { stripClaudeCodeEnv } from '../utils/shell-executor';
 import { checkAuthStatus } from './cursor-auth';
 import { isDaemonRunning, startDaemon } from './cursor-daemon';
+import { getCursorDaemonToken } from './cursor-daemon-auth';
 import { getGlobalEnvConfig } from '../config/config-loader-facade';
 
 interface CursorImageAnalysisResolution {
@@ -31,6 +32,7 @@ interface CursorImageAnalysisDeps {
 
 export function generateCursorEnv(
   config: CursorConfig,
+  daemonToken: string,
   claudeConfigDir?: string
 ): Record<string, string> {
   const opusModel = config.opus_model || config.model;
@@ -39,7 +41,7 @@ export function generateCursorEnv(
 
   return {
     ANTHROPIC_BASE_URL: `http://127.0.0.1:${config.port}`,
-    ANTHROPIC_AUTH_TOKEN: 'cursor-managed',
+    ANTHROPIC_AUTH_TOKEN: daemonToken,
     ANTHROPIC_MODEL: config.model,
     ANTHROPIC_DEFAULT_OPUS_MODEL: opusModel,
     ANTHROPIC_DEFAULT_SONNET_MODEL: sonnetModel,
@@ -130,13 +132,16 @@ export async function executeCursorProfile(
     return 1;
   }
 
-  let daemonRunning = await isDaemonRunning(config.port);
+  const daemonToken = getCursorDaemonToken();
+
+  let daemonRunning = await isDaemonRunning(config.port, daemonToken);
   if (!daemonRunning) {
     if (config.auto_start) {
       console.log(info('Starting cursor daemon...'));
       const result = await startDaemon({
         port: config.port,
         ghost_mode: config.ghost_mode,
+        daemon_token: daemonToken,
       });
       if (!result.success) {
         console.error(fail(`Failed to start cursor daemon: ${result.error}`));
@@ -154,7 +159,7 @@ export async function executeCursorProfile(
     }
   }
 
-  const cursorEnv = generateCursorEnv(config, claudeConfigDir);
+  const cursorEnv = generateCursorEnv(config, daemonToken, claudeConfigDir);
   const globalEnvConfig = getGlobalEnvConfig();
   const globalEnv = globalEnvConfig.enabled ? globalEnvConfig.env : {};
   const webSearchEnv = getWebSearchHookEnv();
diff --git a/src/cursor/cursor-runtime-probe.ts b/src/cursor/cursor-runtime-probe.ts
index 302bbb75..65b8feb5 100644
--- a/src/cursor/cursor-runtime-probe.ts
+++ b/src/cursor/cursor-runtime-probe.ts
@@ -1,6 +1,7 @@
 import type { CursorConfig } from '../config/unified-config-types';
 import { checkAuthStatus } from './cursor-auth';
 import { isDaemonRunning, startDaemon } from './cursor-daemon';
+import { getCursorDaemonToken } from './cursor-daemon-auth';
 import { getModelsForDaemon, resolveCursorRequestModel } from './cursor-models';
 
 export interface CursorProbeResult {
@@ -136,7 +137,8 @@ export async function probeCursorRuntime(config: CursorConfig): Promise<CursorPr
     };
   }
 
-  let daemonRunning = await isDaemonRunning(config.port);
+  const daemonToken = getCursorDaemonToken();
+  let daemonRunning = await isDaemonRunning(config.port, daemonToken);
   if (!daemonRunning && config.auto_start) {
     const startResult = await startDaemon({
       port: config.port,
@@ -144,7 +146,7 @@ export async function probeCursorRuntime(config: CursorConfig): Promise<CursorPr
     });
 
     if (!startResult.success) {
-      daemonRunning = await isDaemonRunning(config.port);
+      daemonRunning = await isDaemonRunning(config.port, daemonToken);
     } else {
       daemonRunning = true;
     }
diff --git a/src/cursor/types.ts b/src/cursor/types.ts
index 199c03cf..cee2b651 100644
--- a/src/cursor/types.ts
+++ b/src/cursor/types.ts
@@ -10,6 +10,7 @@
 export interface CursorDaemonConfig {
   port: number;
   ghost_mode?: boolean;
+  daemon_token?: string;
 }
 
 /**
diff --git a/src/shared/claude-extension-setup.ts b/src/shared/claude-extension-setup.ts
index 47ab8cc6..c3b9b0d0 100644
--- a/src/shared/claude-extension-setup.ts
+++ b/src/shared/claude-extension-setup.ts
@@ -13,6 +13,7 @@ import { CLIPROXY_DEFAULT_PORT } from '../cliproxy/config/port-manager';
 import { getProxyTarget } from '../cliproxy/proxy/proxy-target-resolver';
 import { generateCopilotEnv } from '../copilot/copilot-executor';
 import { generateCursorEnv } from '../cursor';
+import { getCursorDaemonToken } from '../cursor/cursor-daemon-auth';
 import InstanceManager from '../management/instance-manager';
 import SharedManager from '../management/shared-manager';
 import { expandPath } from '../utils/helpers';
@@ -245,7 +246,11 @@ async function resolveExtensionEnv(
               if (!result.cursorConfig) {
                 throw new Error(`Profile "${requestedProfile}" is missing cursor configuration.`);
               }
-              return generateCursorEnv(result.cursorConfig, continuity.claudeConfigDir);
+              return generateCursorEnv(
+                result.cursorConfig,
+                getCursorDaemonToken(),
+                continuity.claudeConfigDir
+              );
             })()
           : (() => {
               if (!result.provider) {
diff --git a/tests/unit/cursor/cursor-daemon.test.ts b/tests/unit/cursor/cursor-daemon.test.ts
index edfac3bd..3724bc39 100644
--- a/tests/unit/cursor/cursor-daemon.test.ts
+++ b/tests/unit/cursor/cursor-daemon.test.ts
@@ -197,7 +197,7 @@ describe('isDaemonRunning', () => {
         throw new Error('Unable to resolve test server port');
       }
 
-      const result = await isDaemonRunning(address.port);
+      const result = await isDaemonRunning(address.port, "bad-token");
       expect(result).toBe(false);
     } finally {
       await new Promise<void>((resolve) => {
diff --git a/tests/unit/cursor/cursor-profile-executor.test.ts b/tests/unit/cursor/cursor-profile-executor.test.ts
index 4d7d6260..1f144896 100644
--- a/tests/unit/cursor/cursor-profile-executor.test.ts
+++ b/tests/unit/cursor/cursor-profile-executor.test.ts
@@ -46,11 +46,12 @@ describe('cursor-profile-executor', () => {
         sonnet_model: 'cursor-sonnet',
         haiku_model: 'cursor-haiku',
       },
+      'test-token',
       '/tmp/claude-config'
     );
 
     expect(env.ANTHROPIC_BASE_URL).toBe('http://127.0.0.1:20129');
-    expect(env.ANTHROPIC_AUTH_TOKEN).toBe('cursor-managed');
+    expect(env.ANTHROPIC_AUTH_TOKEN).toBe('test-token');
     expect(env.ANTHROPIC_MODEL).toBe('gpt-5.3-codex');
     expect(env.ANTHROPIC_DEFAULT_OPUS_MODEL).toBe('cursor-opus');
     expect(env.ANTHROPIC_DEFAULT_SONNET_MODEL).toBe('cursor-sonnet');