diff --git a/gadget-drone/src/gadget-drone.ts b/gadget-drone/src/gadget-drone.ts
index 5c2712d..9f9e9f9 100644
--- a/gadget-drone/src/gadget-drone.ts
+++ b/gadget-drone/src/gadget-drone.ts
@@ -10,6 +10,8 @@ import path from "node:path";
 import { io, ManagerOptions, SocketOptions, Socket } from "socket.io-client";
 import { input as inqInput, password as inqPassword } from "@inquirer/prompts";
 
+import { detectWorkspace } from "@gadget/api";
+
 import AgentService, { IAgentWorkOrder } from "./services/agent.ts";
 import AiService from "./services/ai.ts";
 import PlatformService from "./services/platform.ts";
@@ -62,6 +64,7 @@ class GadgetDrone extends GadgetProcess {
   private socket: ClientSocket | undefined;
   private isShuttingDown: boolean = false;
   private heartbeatTimer: ReturnType<typeof setTimeout> | null = null;
+  private startupDir: string | undefined = undefined;
 
   get name(): string {
     return "GadgetDrone";
@@ -83,11 +86,38 @@ class GadgetDrone extends GadgetProcess {
     this.hookProcessSignals();
     await this.startServices();
 
+    /*
+     * Detect workspace directory by walking up the directory tree.
+     * This allows starting the drone from anywhere within a workspace's hierarchy.
+     */
+
+    const detection = await detectWorkspace();
+    this.startupDir = detection.startupDir;
+
+    if (!detection.found) {
+      this.log.error("no workspace found", {
+        startupDir: detection.startupDir,
+        message: "Start the drone from within a managed workspace or its subdirectories. No .gadget/workspace.json found in any parent directory.",
+      });
+      throw new Error(
+        "No workspace found. Cannot start drone in an unmanaged directory.",
+      );
+    }
+
+    // Change to the workspace directory for all operations
+    const workspaceDir = detection.workspaceDir!;
+    process.chdir(workspaceDir);
+
+    this.log.info("workspace detected", {
+      workspaceDir,
+      startupDir: detection.startupDir,
+      navigated: workspaceDir !== detection.startupDir,
+    });
+
     /*
      * Initialize workspace directory structure and load/create workspace identity.
      */
 
-    const workspaceDir = process.cwd();
     await WorkspaceService.initialize(workspaceDir);
     this.log.info("workspace initialized", {
       workspaceId: WorkspaceService.workspaceId,
@@ -170,6 +200,16 @@ class GadgetDrone extends GadgetProcess {
 
     await this.stopServices();
 
+    /*
+     * Restore the original startup directory before exiting.
+     * This ensures the shell returns to the directory where the
+     * drone was originally started.
+     */
+    if (this.startupDir) {
+      process.chdir(this.startupDir);
+      this.log.info("restored startup directory", { startupDir: this.startupDir });
+    }
+
     return 0;
   }
 
diff --git a/gadget-tasks/src/gadget-tasks.ts b/gadget-tasks/src/gadget-tasks.ts
index 4688dea..717cabf 100644
--- a/gadget-tasks/src/gadget-tasks.ts
+++ b/gadget-tasks/src/gadget-tasks.ts
@@ -8,7 +8,7 @@ import PlatformService from "./services/platform.ts";
 import SchedulerService from "./services/scheduler.ts";
 import TaskLockService from "./services/lock.ts";
 
-import { GadgetLog, type IDroneRegistration, type IProject } from "@gadget/api";
+import { GadgetLog, detectWorkspace, type IDroneRegistration, type IProject } from "@gadget/api";
 import { GadgetProcess } from "./lib/process.ts";
 
 const log = new GadgetLog({ name: "GadgetTasks", slug: "gadget-tasks" });
@@ -20,6 +20,7 @@ interface UserCredentials {
 
 class GadgetTasks extends GadgetProcess {
   private selectedDrone: IDroneRegistration | null = null;
+  private startupDir: string | undefined = undefined;
 
   get name(): string {
     return "GadgetTasks";
@@ -36,6 +37,34 @@ class GadgetTasks extends GadgetProcess {
   async start(): Promise<void> {
     this.hookProcessSignals();
 
+    /*
+     * Detect workspace directory by walking up the directory tree.
+     * This allows starting from anywhere within a workspace's hierarchy.
+     */
+
+    const detection = await detectWorkspace();
+    this.startupDir = detection.startupDir;
+
+    if (!detection.found) {
+      this.log.error("no workspace found", {
+        startupDir: detection.startupDir,
+        message: "Start gadget-tasks from within a managed workspace or its subdirectories. No .gadget/workspace.json found in any parent directory.",
+      });
+      throw new Error(
+        "No workspace found. Cannot start gadget-tasks in an unmanaged directory.",
+      );
+    }
+
+    // Change to the workspace directory for all operations
+    const workspaceDir = detection.workspaceDir!;
+    process.chdir(workspaceDir);
+
+    this.log.info("workspace detected", {
+      workspaceDir,
+      startupDir: detection.startupDir,
+      navigated: workspaceDir !== detection.startupDir,
+    });
+
     // 1. Acquire singleton lock via Redis
     const lockAcquired = await TaskLockService.acquire();
     if (!lockAcquired) {
@@ -78,6 +107,14 @@ class GadgetTasks extends GadgetProcess {
     await PlatformService.stop();
     await TaskLockService.release();
 
+    /*
+     * Restore the original startup directory before exiting.
+     */
+    if (this.startupDir) {
+      process.chdir(this.startupDir);
+      this.log.info("restored startup directory", { startupDir: this.startupDir });
+    }
+
     this.log.info("shutdown complete");
     return 0;
   }
diff --git a/packages/api/src/index.ts b/packages/api/src/index.ts
index 251017c..ae1edf2 100644
--- a/packages/api/src/index.ts
+++ b/packages/api/src/index.ts
@@ -10,6 +10,7 @@ export * from "./lib/log-transport-console.ts";
 export * from "./lib/log-transport-file.ts";
 export * from "./lib/log-transport-socket.ts";
 export * from "./lib/log-file.ts";
+export * from "./lib/workspace-detector.ts";
 
 /*
  * Data Model Interfaces
diff --git a/packages/api/src/lib/workspace-detector.ts b/packages/api/src/lib/workspace-detector.ts
new file mode 100644
index 0000000..a7a9d43
--- /dev/null
+++ b/packages/api/src/lib/workspace-detector.ts
@@ -0,0 +1,58 @@
+// src/lib/workspace-detector.ts
+// Copyright (C) 2026 Rob Colbert <rob.colbert@openplatform.us>
+// Licensed under the Apache License, Version 2.0
+
+import fs from "node:fs/promises";
+import path from "node:path";
+
+export interface WorkspaceDetectionResult {
+  found: boolean;
+  workspaceDir?: string;
+  startupDir: string;
+}
+
+/**
+ * Walks up the directory tree from startDir looking for .gadget/workspace.json.
+ * Returns the workspace directory if found, or { found: false } if not.
+ *
+ * @param startDir - The directory to start searching from (defaults to process.cwd())
+ * @returns Promise resolving to workspace detection result
+ */
+export async function detectWorkspace(
+  startDir: string = process.cwd(),
+): Promise<WorkspaceDetectionResult> {
+  const startupDir = path.resolve(startDir);
+  let currentDir = startupDir;
+
+  // Walk up the directory tree until we hit root
+  while (true) {
+    const workspaceFile = path.join(currentDir, ".gadget", "workspace.json");
+
+    try {
+      await fs.access(workspaceFile);
+      // Found the workspace
+      return {
+        found: true,
+        workspaceDir: currentDir,
+        startupDir,
+      };
+    } catch {
+      // workspace.json not found in this directory, go up one level
+    }
+
+    const parentDir = path.dirname(currentDir);
+
+    // Check if we've reached the root (parent equals current)
+    if (parentDir === currentDir) {
+      break;
+    }
+
+    currentDir = parentDir;
+  }
+
+  // No workspace.json found in any parent directory
+  return {
+    found: false,
+    startupDir,
+  };
+}
\ No newline at end of file