diff --git a/docs/architecture.md b/docs/architecture.md
index 354e0a77c..012e47083 100644
--- a/docs/architecture.md
+++ b/docs/architecture.md
@@ -382,5 +382,5 @@ $PASEO_HOME/
 ## Deployment models
 
 1. **Local daemon** (default): `paseo daemon start` on `127.0.0.1:6767`
-2. **Managed desktop**: Electron app spawns daemon as subprocess
+2. **Managed desktop**: Electron app spawns daemon as subprocess, and stops it again on quit so that "restart the app" is a complete reset. Settings > Host > "Keep daemon running after quit" opts out. Only a daemon the desktop started is stopped — a daemon you started yourself with `paseo daemon start` is left alone (`paseo.pid` records `desktopManaged`).
 3. **Remote + relay**: Daemon behind firewall, relay bridges with E2E encryption
diff --git a/docs/product.md b/docs/product.md
index 2eeeb0b84..e8a7a553b 100644
--- a/docs/product.md
+++ b/docs/product.md
@@ -43,7 +43,8 @@ This architecture means:
 
 - The daemon can run on any machine: laptop, VM, remote server
 - Multiple clients can connect simultaneously
-- Agents keep running when you close the app
+- Agents keep running when a client disconnects — the daemon owns them, not the client
+- Quitting the desktop app stops the daemon it started, so "restart the app" is a real fix; a daemon you run yourself is unaffected
 
 ## Target user
 
diff --git a/packages/app/src/desktop/settings/desktop-settings.ts b/packages/app/src/desktop/settings/desktop-settings.ts
index cbda11e02..3ff857652 100644
--- a/packages/app/src/desktop/settings/desktop-settings.ts
+++ b/packages/app/src/desktop/settings/desktop-settings.ts
@@ -28,7 +28,7 @@ export const DEFAULT_DESKTOP_SETTINGS: DesktopSettings = {
   releaseChannel: "stable",
   daemon: {
     manageBuiltInDaemon: true,
-    keepRunningAfterQuit: true,
+    keepRunningAfterQuit: false,
   },
 };
 
diff --git a/packages/app/src/hooks/use-settings/fakes.ts b/packages/app/src/hooks/use-settings/fakes.ts
index 95d46ad94..b13163e6d 100644
--- a/packages/app/src/hooks/use-settings/fakes.ts
+++ b/packages/app/src/hooks/use-settings/fakes.ts
@@ -31,7 +31,7 @@ const DEFAULT_DESKTOP: DesktopSettings = {
   releaseChannel: "stable",
   daemon: {
     manageBuiltInDaemon: true,
-    keepRunningAfterQuit: true,
+    keepRunningAfterQuit: false,
   },
 };
 
diff --git a/packages/desktop/src/daemon/quit-lifecycle.test.ts b/packages/desktop/src/daemon/quit-lifecycle.test.ts
index 1d636bd95..5dd1e6680 100644
--- a/packages/desktop/src/daemon/quit-lifecycle.test.ts
+++ b/packages/desktop/src/daemon/quit-lifecycle.test.ts
@@ -7,12 +7,12 @@ import {
   stopDesktopManagedDaemonOnQuitIfNeeded,
 } from "./quit-lifecycle";
 
-const SETTINGS_KEEP_RUNNING = DEFAULT_DESKTOP_SETTINGS;
-const SETTINGS_STOP_ON_QUIT = {
+const SETTINGS_STOP_ON_QUIT = DEFAULT_DESKTOP_SETTINGS;
+const SETTINGS_KEEP_RUNNING = {
   ...DEFAULT_DESKTOP_SETTINGS,
   daemon: {
     ...DEFAULT_DESKTOP_SETTINGS.daemon,
-    keepRunningAfterQuit: false,
+    keepRunningAfterQuit: true,
   },
 };
 
@@ -29,7 +29,7 @@ function waitForQuitLifecycle(): Promise<void> {
 }
 
 describe("quit-lifecycle", () => {
-  it("only stops when keepRunningAfterQuit is explicitly disabled", () => {
+  it("stops by default and only keeps running when keepRunningAfterQuit is enabled", () => {
     expect(shouldStopDesktopManagedDaemonOnQuit(SETTINGS_STOP_ON_QUIT)).toBe(true);
     expect(shouldStopDesktopManagedDaemonOnQuit(SETTINGS_KEEP_RUNNING)).toBe(false);
   });
diff --git a/packages/desktop/src/settings/desktop-settings.test.ts b/packages/desktop/src/settings/desktop-settings.test.ts
index 0291f220e..445f5b089 100644
--- a/packages/desktop/src/settings/desktop-settings.test.ts
+++ b/packages/desktop/src/settings/desktop-settings.test.ts
@@ -162,6 +162,50 @@ describe("desktop-settings", () => {
     expect(persisted).toBe(raw);
   });
 
+  it("resets the pre-existing keep-running default so the daemon stops with the app", async () => {
+    const userDataPath = await createTempUserDataDir();
+    directories.add(userDataPath);
+    await writeFile(
+      settingsFilePath(userDataPath),
+      JSON.stringify({
+        version: 1,
+        settings: {
+          releaseChannel: "stable",
+          daemon: { manageBuiltInDaemon: true, keepRunningAfterQuit: true },
+        },
+        migrations: { legacyRendererSettingsImported: true },
+      }),
+    );
+    const store = createDesktopSettingsStore({ userDataPath });
+
+    const settings = await store.get();
+
+    expect(settings.daemon.keepRunningAfterQuit).toBe(false);
+  });
+
+  it("keeps an explicit keep-running choice across restarts", async () => {
+    const userDataPath = await createTempUserDataDir();
+    directories.add(userDataPath);
+    await writeFile(
+      settingsFilePath(userDataPath),
+      JSON.stringify({
+        version: 1,
+        settings: {
+          releaseChannel: "stable",
+          daemon: { manageBuiltInDaemon: true, keepRunningAfterQuit: true },
+        },
+        migrations: { legacyRendererSettingsImported: true },
+      }),
+    );
+    await createDesktopSettingsStore({ userDataPath }).patch({
+      daemon: { keepRunningAfterQuit: true },
+    });
+
+    const settings = await createDesktopSettingsStore({ userDataPath }).get();
+
+    expect(settings.daemon.keepRunningAfterQuit).toBe(true);
+  });
+
   it("migrates desktop-owned values from legacy renderer settings once", async () => {
     const userDataPath = await createTempUserDataDir();
     directories.add(userDataPath);
diff --git a/packages/desktop/src/settings/desktop-settings.ts b/packages/desktop/src/settings/desktop-settings.ts
index cfadc1f6f..c8fe23d3e 100644
--- a/packages/desktop/src/settings/desktop-settings.ts
+++ b/packages/desktop/src/settings/desktop-settings.ts
@@ -22,6 +22,11 @@ interface PersistedDesktopSettingsDocument {
   settings: DesktopSettings;
   migrations: {
     legacyRendererSettingsImported: boolean;
+    // Installs created before the stop-on-quit default persisted the old
+    // `keepRunningAfterQuit: true` default to disk, so the new default alone
+    // would only reach fresh installs. Reset it once; a later explicit toggle
+    // persists this flag and is never overridden again.
+    daemonStopOnQuitDefaultApplied: boolean;
   };
 }
 
@@ -35,7 +40,7 @@ export const DEFAULT_DESKTOP_SETTINGS: DesktopSettings = {
   releaseChannel: "stable",
   daemon: {
     manageBuiltInDaemon: true,
-    keepRunningAfterQuit: true,
+    keepRunningAfterQuit: false,
   },
 };
 
@@ -72,6 +77,7 @@ function buildDefaultDocument(): PersistedDesktopSettingsDocument {
     },
     migrations: {
       legacyRendererSettingsImported: false,
+      daemonStopOnQuitDefaultApplied: true,
     },
   };
 }
@@ -180,11 +186,18 @@ function coerceDocument(input: unknown): PersistedDesktopSettingsDocument {
   const migrations = isRecord(input.migrations)
     ? {
         legacyRendererSettingsImported: input.migrations.legacyRendererSettingsImported === true,
+        daemonStopOnQuitDefaultApplied: input.migrations.daemonStopOnQuitDefaultApplied === true,
       }
     : {
         legacyRendererSettingsImported: false,
+        daemonStopOnQuitDefaultApplied: false,
       };
 
+  if (!migrations.daemonStopOnQuitDefaultApplied) {
+    settings.daemon.keepRunningAfterQuit = DEFAULT_DESKTOP_SETTINGS.daemon.keepRunningAfterQuit;
+    migrations.daemonStopOnQuitDefaultApplied = true;
+  }
+
   return {
     version: 1,
     settings,