diff --git a/src/aipass/cli/README.md b/src/aipass/cli/README.md
index 3095422a..9889ee75 100644
--- a/src/aipass/cli/README.md
+++ b/src/aipass/cli/README.md
@@ -5,7 +5,7 @@
 **Purpose:** Display and output formatting service for AIPass modules. Provides consistent terminal output — headers, success/error/warning messages, section breaks, and operation templates — so every module looks the same without duplicating Rich formatting code.
 **Module:** `aipass.cli`
 **Seedgo:** 100%
-**Tests:** 151 passing (6 files, 5/5 modules covered)
+**Tests:** 161 passing (6 files, 5/5 modules covered)
 **Last Updated:** 2026-04-11
 
 ## Usage
@@ -66,7 +66,7 @@ cli/
 ├── cli_json/                   # Auto-created JSON output (three-file pattern)
 ├── dropbox/                    # Inbound file drop
 ├── logs/                       # Branch-level logs
-├── tests/                      # 151 tests across 6 files
+├── tests/                      # 161 tests across 6 files
 │   ├── test_bootstrap.py       # bootstrap.py handler tests
 │   ├── test_json_handler.py    # json_handler tests
 │   ├── test_display.py         # display module tests
diff --git a/src/aipass/cli/apps/handlers/init/bootstrap.py b/src/aipass/cli/apps/handlers/init/bootstrap.py
index 5fc20b6e..d90e64b4 100644
--- a/src/aipass/cli/apps/handlers/init/bootstrap.py
+++ b/src/aipass/cli/apps/handlers/init/bootstrap.py
@@ -412,9 +412,23 @@ def _gitignore() -> str:
 def _claude_settings(aipass_home: str | None = None) -> str:
     """Generate .claude/settings.json — minimal hooks for prompt injection.
 
+    Installs two UserPromptSubmit hooks:
+    1. Global prompt — injects .aipass/aipass_global_prompt.md from CWD.
+    2. Local prompt  — walks up from CWD to find .aipass/aipass_local_prompt.md
+       (branch-level prompt, e.g. inside src/<agent>/).
+
     Args:
         aipass_home: Optional AIPass installation root to add as env.AIPASS_HOME.
     """
+    _local_prompt_cmd = (
+        "dir=$(pwd); "
+        "while [ \"$dir\" != \"/\" ]; do "
+        "if [ -f \"$dir/.aipass/aipass_local_prompt.md\" ]; then "
+        "cat \"$dir/.aipass/aipass_local_prompt.md\"; break; "
+        "fi; "
+        "dir=$(dirname \"$dir\"); "
+        "done"
+    )
     data: dict = {
         "hooks": {
             "UserPromptSubmit": [
@@ -426,7 +440,16 @@ def _claude_settings(aipass_home: str | None = None) -> str:
                             "command": "cat .aipass/aipass_global_prompt.md 2>/dev/null || true",
                         }
                     ],
-                }
+                },
+                {
+                    "matcher": "",
+                    "hooks": [
+                        {
+                            "type": "command",
+                            "command": _local_prompt_cmd,
+                        }
+                    ],
+                },
             ]
         }
     }
diff --git a/src/aipass/cli/apps/modules/init_project.py b/src/aipass/cli/apps/modules/init_project.py
index 0729800e..11be5785 100644
--- a/src/aipass/cli/apps/modules/init_project.py
+++ b/src/aipass/cli/apps/modules/init_project.py
@@ -260,6 +260,12 @@ def _handle_init(args: List[str]) -> bool:
 
     success(f"Created {len(result['created_files'])} files")
 
+    if result.get("aipass_home"):
+        console.print()
+        console.print(f"[bold cyan]AIPASS_HOME:[/bold cyan] [yellow]{result['aipass_home']}[/yellow]")
+        console.print(f"[dim]For terminal usage, add to your shell profile:[/dim]")
+        console.print(f"  [green]export AIPASS_HOME={result['aipass_home']}[/green]")
+
     json_handler.log_operation("aipass_init", {
         "project_name": result["project_name"],
         "target": result["target"],
@@ -462,7 +468,7 @@ def _print_init_help():
     console.print("[bold cyan]WHAT IT CREATES:[/bold cyan]")
     console.print()
 
-    files_text = """[bold]Project scaffold (11 items):[/bold]
+    files_text = """[bold]Project scaffold (12 items):[/bold]
 
   [green]1.[/green]  [yellow]{NAME}_REGISTRY.json[/yellow]            Project registry with UUID
   [green]2.[/green]  [yellow].aipass/aipass_global_prompt.md[/yellow]  Global prompt (injected every turn)
@@ -472,9 +478,10 @@ def _print_init_help():
   [green]6.[/green]  [yellow]README.md[/yellow]                       Getting started guide
   [green]7.[/green]  [yellow]STATUS.local.md[/yellow]                 Project status
   [green]8.[/green]  [yellow].gitignore[/yellow]                      Standard AIPass ignores
-  [green]9.[/green]  [yellow].claude/settings.json[/yellow]           Claude Code hooks
+  [green]9.[/green]  [yellow].claude/settings.json[/yellow]           Claude Code hooks + AIPASS_HOME
   [green]10.[/green] [yellow]hooks/[/yellow]                          User hooks directory
-  [green]11.[/green] [yellow]src/[/yellow]                            Agent directories live here"""
+  [green]11.[/green] [yellow]src/[/yellow]                            Agent directories live here
+  [green]12.[/green] [yellow].ai_mail.local/inbox.json[/yellow]       Empty project mailbox"""
 
     console.print(Panel(files_text, border_style="green", padding=(1, 2), box=box.ROUNDED))
     console.print()
diff --git a/src/aipass/cli/tests/test_bootstrap.py b/src/aipass/cli/tests/test_bootstrap.py
index b0a413a4..effb11ce 100644
--- a/src/aipass/cli/tests/test_bootstrap.py
+++ b/src/aipass/cli/tests/test_bootstrap.py
@@ -278,6 +278,28 @@ def test_init_project_claude_settings_content(tmp_path):
     assert "UserPromptSubmit" in data["hooks"]
 
 
+def test_init_project_settings_has_two_hooks(tmp_path):
+    """.claude/settings.json has both global and local prompt hooks."""
+    target = tmp_path / "proj"
+    target.mkdir()
+
+    init_project(target, project_name="alpha")
+
+    settings_path = target / ".claude" / "settings.json"
+    data = json.loads(settings_path.read_text(encoding="utf-8"))
+    hooks = data["hooks"]["UserPromptSubmit"]
+    assert len(hooks) == 2, f"Expected 2 UserPromptSubmit hooks, got {len(hooks)}"
+
+    # First hook: global prompt
+    global_cmd = hooks[0]["hooks"][0]["command"]
+    assert "aipass_global_prompt.md" in global_cmd
+
+    # Second hook: local prompt walk-up
+    local_cmd = hooks[1]["hooks"][0]["command"]
+    assert "aipass_local_prompt.md" in local_cmd
+    assert "dirname" in local_cmd, "Local prompt hook should walk up with dirname"
+
+
 def test_init_project_global_prompt_content(tmp_path):
     """Global prompt contains project name and AIPass terminology."""
     target = tmp_path / "proj"