diff --git a/packages/server/src/server/routes/settings.ts b/packages/server/src/server/routes/settings.ts
index 1d6fe13a..5d18e4fd 100644
--- a/packages/server/src/server/routes/settings.ts
+++ b/packages/server/src/server/routes/settings.ts
@@ -1,6 +1,6 @@
 import { FastifyInstance } from "fastify"
 import { z } from "zod"
-import { probeBinaryVersion } from "../../workspaces/runtime"
+import { probeBinaryVersion } from "../../workspaces/spawn"
 import type { SettingsService } from "../../settings/service"
 import type { Logger } from "../../logger"
 import { sanitizeConfigDoc, sanitizeConfigOwner } from "../../settings/public-config"
diff --git a/packages/server/src/workspaces/__tests__/spawn.test.ts b/packages/server/src/workspaces/__tests__/spawn.test.ts
new file mode 100644
index 00000000..8266dac9
--- /dev/null
+++ b/packages/server/src/workspaces/__tests__/spawn.test.ts
@@ -0,0 +1,70 @@
+import assert from "node:assert/strict"
+import { describe, it } from "node:test"
+
+import { buildWindowsSpawnSpec, parseWslUncPath, resolveWslWorkingDirectory } from "../spawn"
+
+describe("parseWslUncPath", () => {
+  it("parses WSL UNC paths into distro and linux path", () => {
+    assert.deepEqual(parseWslUncPath(String.raw`\\wsl.localhost\Ubuntu\home\dev\.opencode\bin\opencode`), {
+      distro: "Ubuntu",
+      linuxPath: "/home/dev/.opencode/bin/opencode",
+    })
+  })
+
+  it("supports the legacy wsl$ UNC prefix", () => {
+    assert.deepEqual(parseWslUncPath(String.raw`\\wsl$\Ubuntu\home\dev`), {
+      distro: "Ubuntu",
+      linuxPath: "/home/dev",
+    })
+  })
+})
+
+describe("resolveWslWorkingDirectory", () => {
+  it("keeps WSL workspace folders in the same distro", () => {
+    assert.equal(
+      resolveWslWorkingDirectory(String.raw`\\wsl.localhost\Ubuntu\home\dev\workspace`, "Ubuntu"),
+      "/home/dev/workspace",
+    )
+  })
+
+  it("maps Windows drive paths into /mnt when launching through WSL", () => {
+    assert.equal(resolveWslWorkingDirectory(String.raw`C:\Users\dev\workspace`, "Ubuntu"), "/mnt/c/Users/dev/workspace")
+  })
+
+  it("rejects WSL workspace folders from a different distro", () => {
+    assert.equal(resolveWslWorkingDirectory(String.raw`\\wsl.localhost\Debian\home\dev\workspace`, "Ubuntu"), null)
+  })
+})
+
+describe("buildWindowsSpawnSpec", () => {
+  it("wraps WSL binaries with wsl.exe and propagates required env vars", () => {
+    const spec = buildWindowsSpawnSpec(
+      String.raw`\\wsl.localhost\Ubuntu\home\dev\.opencode\bin\opencode`,
+      ["serve", "--port", "0"],
+      {
+        cwd: String.raw`\\wsl.localhost\Ubuntu\home\dev\workspace`,
+        env: {
+          OPENCODE_CONFIG_DIR: String.raw`C:\Users\dev\AppData\Roaming\CodeNomad\opencode-config`,
+          CODENOMAD_INSTANCE_ID: "workspace-123",
+          OPENCODE_SERVER_PASSWORD: "secret",
+        },
+        propagateEnvKeys: ["OPENCODE_CONFIG_DIR", "CODENOMAD_INSTANCE_ID", "OPENCODE_SERVER_PASSWORD"],
+      },
+    )
+
+    assert.equal(spec.command, "wsl.exe")
+    assert.deepEqual(spec.args, [
+      "--distribution",
+      "Ubuntu",
+      "--cd",
+      "/home/dev/workspace",
+      "--exec",
+      "/home/dev/.opencode/bin/opencode",
+      "serve",
+      "--port",
+      "0",
+    ])
+    assert.equal(spec.cwd, undefined)
+    assert.equal(spec.env?.WSLENV, "OPENCODE_CONFIG_DIR/p:CODENOMAD_INSTANCE_ID:OPENCODE_SERVER_PASSWORD")
+  })
+})
diff --git a/packages/server/src/workspaces/runtime.ts b/packages/server/src/workspaces/runtime.ts
index 1269f0b7..3b52ca39 100644
--- a/packages/server/src/workspaces/runtime.ts
+++ b/packages/server/src/workspaces/runtime.ts
@@ -4,98 +4,7 @@ import path from "path"
 import { EventBus } from "../events/bus"
 import { LogLevel, WorkspaceLogEntry } from "../api-types"
 import { Logger } from "../logger"
-
-export const WINDOWS_CMD_EXTENSIONS = new Set([".cmd", ".bat"])
-export const WINDOWS_POWERSHELL_EXTENSIONS = new Set([".ps1"])
-
-const VERSION_REGEX = /([0-9]+\.[0-9]+\.[0-9A-Za-z.-]+)/
-
-export function buildSpawnSpec(binaryPath: string, args: string[]) {
-  if (process.platform !== "win32") {
-    return { command: binaryPath, args, options: {} as const }
-  }
-
-  const extension = path.extname(binaryPath).toLowerCase()
-
-  if (WINDOWS_CMD_EXTENSIONS.has(extension)) {
-    const comspec = process.env.ComSpec || "cmd.exe"
-    // cmd.exe requires the full command as a single string.
-    // Using the ""<script> <args>"" pattern ensures paths with spaces are handled.
-    const commandLine = `""${binaryPath}" ${args.join(" ")}"`
-
-    return {
-      command: comspec,
-      args: ["/d", "/s", "/c", commandLine],
-      options: { windowsVerbatimArguments: true } as const,
-    }
-  }
-
-  if (WINDOWS_POWERSHELL_EXTENSIONS.has(extension)) {
-    // powershell.exe ships with Windows. (pwsh may not.)
-    return {
-      command: "powershell.exe",
-      args: ["-NoProfile", "-ExecutionPolicy", "Bypass", "-File", binaryPath, ...args],
-      options: {} as const,
-    }
-  }
-
-  return { command: binaryPath, args, options: {} as const }
-}
-
-export function probeBinaryVersion(binaryPath: string): {
-  valid: boolean
-  version?: string
-  reported?: string
-  error?: string
-} {
-  if (!binaryPath) {
-    return { valid: false, error: "Missing binary path" }
-  }
-
-  const spec = buildSpawnSpec(binaryPath, ["--version"])
-
-  try {
-    const result = spawnSync(spec.command, spec.args, {
-      encoding: "utf8",
-      windowsVerbatimArguments: Boolean(
-        (spec.options as { windowsVerbatimArguments?: boolean }).windowsVerbatimArguments,
-      ),
-    })
-
-    if (result.error) {
-      return { valid: false, error: result.error.message }
-    }
-
-    if (result.status !== 0) {
-      const stderr = result.stderr?.trim()
-      const stdout = result.stdout?.trim()
-      const combined = stderr || stdout
-      const error = combined ? `Exited with code ${result.status}: ${combined}` : `Exited with code ${result.status}`
-      return { valid: false, error }
-    }
-
-    const stdoutLines = String(result.stdout ?? "")
-      .split(/\r?\n/)
-      .map((line) => line.trim())
-      .filter((line) => line.length > 0)
-    const stderrLines = String(result.stderr ?? "")
-      .split(/\r?\n/)
-      .map((line) => line.trim())
-      .filter((line) => line.length > 0)
-
-    // Prefer stdout; fall back to stderr (some tools report version there).
-    const reported = stdoutLines[0] ?? stderrLines[0]
-    if (!reported) {
-      return { valid: true }
-    }
-
-    const versionMatch = reported.match(VERSION_REGEX)
-    const version = versionMatch?.[1]
-    return { valid: true, version, reported }
-  } catch (error) {
-    return { valid: false, error: error instanceof Error ? error.message : String(error) }
-  }
-}
+import { buildSpawnSpec } from "./spawn"
 
 const SENSITIVE_ENV_KEY = /(PASSWORD|TOKEN|SECRET)/i
 
@@ -167,7 +76,12 @@ export class WorkspaceRuntime {
     }
 
     return new Promise((resolve, reject) => {
-      const spec = buildSpawnSpec(options.binaryPath, args)
+      const propagatedEnvKeys = Object.keys(options.environment ?? {})
+      const spec = buildSpawnSpec(options.binaryPath, args, {
+        cwd: options.folder,
+        env,
+        propagateEnvKeys: propagatedEnvKeys,
+      })
       const commandLine = [spec.command, ...spec.args].join(" ")
       this.logger.info(
         {
@@ -197,8 +111,8 @@ export class WorkspaceRuntime {
       )
       const detached = process.platform !== "win32"
       const child = spawn(spec.command, spec.args, {
-        cwd: options.folder,
-        env,
+        cwd: spec.cwd,
+        env: spec.env,
         stdio: ["ignore", "pipe", "pipe"],
         detached,
         ...spec.options,
diff --git a/packages/server/src/workspaces/spawn.ts b/packages/server/src/workspaces/spawn.ts
new file mode 100644
index 00000000..32ae00ec
--- /dev/null
+++ b/packages/server/src/workspaces/spawn.ts
@@ -0,0 +1,229 @@
+import { spawnSync } from "child_process"
+import path from "path"
+
+export const WINDOWS_CMD_EXTENSIONS = new Set([".cmd", ".bat"])
+export const WINDOWS_POWERSHELL_EXTENSIONS = new Set([".ps1"])
+
+const VERSION_REGEX = /([0-9]+\.[0-9]+\.[0-9A-Za-z.-]+)/
+const WSL_UNC_PATH_REGEX = /^\\\\wsl(?:\.localhost|\$)\\([^\\/]+)(?:[\\/](.*))?$/i
+const WINDOWS_DRIVE_PATH_REGEX = /^([A-Za-z]):[\\/]*(.*)$/
+const WSL_PATH_ENV_KEYS = new Set(["OPENCODE_CONFIG_DIR", "NODE_EXTRA_CA_CERTS"])
+
+export interface SpawnSpec {
+  command: string
+  args: string[]
+  options: {
+    windowsVerbatimArguments?: boolean
+  }
+  cwd?: string
+  env?: NodeJS.ProcessEnv
+}
+
+interface BuildSpawnSpecOptions {
+  cwd?: string
+  env?: NodeJS.ProcessEnv
+  propagateEnvKeys?: string[]
+}
+
+interface WslPath {
+  distro: string
+  linuxPath: string
+}
+
+export function parseWslUncPath(input: string): WslPath | null {
+  const normalized = input.trim().replace(/\//g, "\\")
+  const match = normalized.match(WSL_UNC_PATH_REGEX)
+  if (!match) {
+    return null
+  }
+
+  const distro = match[1] ?? ""
+  const remainder = match[2] ?? ""
+  const segments = remainder.split(/\\+/).filter((segment) => segment.length > 0)
+
+  return {
+    distro,
+    linuxPath: segments.length > 0 ? `/${segments.join("/")}` : "/",
+  }
+}
+
+export function resolveWslWorkingDirectory(folder: string, distro: string): string | null {
+  const wslFolder = parseWslUncPath(folder)
+  if (wslFolder) {
+    return wslFolder.distro.toLowerCase() === distro.toLowerCase() ? wslFolder.linuxPath : null
+  }
+
+  return translateWindowsDrivePath(folder)
+}
+
+export function buildWindowsSpawnSpec(binaryPath: string, args: string[], options: BuildSpawnSpecOptions = {}): SpawnSpec {
+  const wslPath = parseWslUncPath(binaryPath)
+  if (wslPath) {
+    return buildWslSpawnSpec(wslPath, args, options)
+  }
+
+  const extension = path.extname(binaryPath).toLowerCase()
+
+  if (WINDOWS_CMD_EXTENSIONS.has(extension)) {
+    const comspec = process.env.ComSpec || "cmd.exe"
+    // cmd.exe requires the full command as a single string.
+    // Using the ""<script> <args>"" pattern ensures paths with spaces are handled.
+    const commandLine = `""${binaryPath}" ${args.join(" ")}"`
+
+    return {
+      command: comspec,
+      args: ["/d", "/s", "/c", commandLine],
+      options: { windowsVerbatimArguments: true },
+      cwd: options.cwd,
+      env: options.env,
+    }
+  }
+
+  if (WINDOWS_POWERSHELL_EXTENSIONS.has(extension)) {
+    // powershell.exe ships with Windows. (pwsh may not.)
+    return {
+      command: "powershell.exe",
+      args: ["-NoProfile", "-ExecutionPolicy", "Bypass", "-File", binaryPath, ...args],
+      options: {},
+      cwd: options.cwd,
+      env: options.env,
+    }
+  }
+
+  return {
+    command: binaryPath,
+    args,
+    options: {},
+    cwd: options.cwd,
+    env: options.env,
+  }
+}
+
+export function buildSpawnSpec(binaryPath: string, args: string[], options: BuildSpawnSpecOptions = {}): SpawnSpec {
+  if (process.platform !== "win32") {
+    return {
+      command: binaryPath,
+      args,
+      options: {},
+      cwd: options.cwd,
+      env: options.env,
+    }
+  }
+
+  return buildWindowsSpawnSpec(binaryPath, args, options)
+}
+
+export function probeBinaryVersion(binaryPath: string): {
+  valid: boolean
+  version?: string
+  reported?: string
+  error?: string
+} {
+  if (!binaryPath) {
+    return { valid: false, error: "Missing binary path" }
+  }
+
+  try {
+    const spec = buildSpawnSpec(binaryPath, ["--version"])
+    const result = spawnSync(spec.command, spec.args, {
+      encoding: "utf8",
+      cwd: spec.cwd,
+      env: spec.env,
+      windowsVerbatimArguments: Boolean(spec.options.windowsVerbatimArguments),
+    })
+
+    if (result.error) {
+      return { valid: false, error: result.error.message }
+    }
+
+    if (result.status !== 0) {
+      const stderr = result.stderr?.trim()
+      const stdout = result.stdout?.trim()
+      const combined = stderr || stdout
+      const error = combined ? `Exited with code ${result.status}: ${combined}` : `Exited with code ${result.status}`
+      return { valid: false, error }
+    }
+
+    const stdoutLines = String(result.stdout ?? "")
+      .split(/\r?\n/)
+      .map((line) => line.trim())
+      .filter((line) => line.length > 0)
+    const stderrLines = String(result.stderr ?? "")
+      .split(/\r?\n/)
+      .map((line) => line.trim())
+      .filter((line) => line.length > 0)
+
+    // Prefer stdout; fall back to stderr (some tools report version there).
+    const reported = stdoutLines[0] ?? stderrLines[0]
+    if (!reported) {
+      return { valid: true }
+    }
+
+    const versionMatch = reported.match(VERSION_REGEX)
+    const version = versionMatch?.[1]
+    return { valid: true, version, reported }
+  } catch (error) {
+    return { valid: false, error: error instanceof Error ? error.message : String(error) }
+  }
+}
+
+function buildWslSpawnSpec(wslPath: WslPath, args: string[], options: BuildSpawnSpecOptions): SpawnSpec {
+  const linuxCwd = options.cwd ? resolveWslWorkingDirectory(options.cwd, wslPath.distro) : undefined
+  if (options.cwd && !linuxCwd) {
+    throw new Error(
+      `Unable to translate workspace folder for WSL binary in distro "${wslPath.distro}": ${options.cwd}`,
+    )
+  }
+
+  const wslArgs = ["--distribution", wslPath.distro]
+  if (linuxCwd) {
+    wslArgs.push("--cd", linuxCwd)
+  }
+  wslArgs.push("--exec", wslPath.linuxPath, ...args)
+
+  return {
+    command: "wsl.exe",
+    args: wslArgs,
+    options: {},
+    env: buildWslEnvironment(options.env, options.propagateEnvKeys),
+  }
+}
+
+function translateWindowsDrivePath(input: string): string | null {
+  const normalized = input.trim().replace(/\//g, "\\")
+  const match = normalized.match(WINDOWS_DRIVE_PATH_REGEX)
+  if (!match) {
+    return null
+  }
+
+  const driveLetter = (match[1] ?? "").toLowerCase()
+  const remainder = match[2] ?? ""
+  const segments = remainder.split(/\\+/).filter((segment) => segment.length > 0)
+
+  return segments.length > 0 ? `/mnt/${driveLetter}/${segments.join("/")}` : `/mnt/${driveLetter}`
+}
+
+function buildWslEnvironment(env: NodeJS.ProcessEnv | undefined, propagateEnvKeys: string[] | undefined): NodeJS.ProcessEnv | undefined {
+  if (!env) {
+    return env
+  }
+
+  const keysToPropagate = (propagateEnvKeys ?? []).filter((key) => env[key] !== undefined)
+  if (keysToPropagate.length === 0) {
+    return env
+  }
+
+  const next = { ...env }
+  const entries = (next.WSLENV ?? "").split(":").filter((entry) => entry.length > 0)
+  const byName = new Map(entries.map((entry) => [entry.split("/")[0] ?? entry, entry]))
+
+  for (const key of keysToPropagate) {
+    if (byName.has(key)) {
+      continue
+    }
+    byName.set(key, WSL_PATH_ENV_KEYS.has(key) ? `${key}/p` : key)
+  }
+
+  next.WSLENV = Array.from(byName.values()).join(":")
+  return next
+}