diff --git a/README.md b/README.md
index 9987d3b..09fe29d 100644
--- a/README.md
+++ b/README.md
@@ -13,7 +13,6 @@ AI-powered work breakdown and parallel execution TUI. Describe what you want to
 ## Prerequisites
 
 - **Node.js 22+**
-- **GitHub Copilot CLI** installed and authenticated (`npm install -g @github/copilot && copilot auth`)
 
 ## Quick Start
 
@@ -23,6 +22,18 @@ npm run build
 npm start            # Launch the TUI (home screen)
 ```
 
+**Note:** Planeteer bundles the GitHub Copilot CLI automatically. You'll need to authenticate with GitHub Copilot on first use (via GitHub authentication in your browser).
+
+## Features
+
+- **Zero-config CLI**: The GitHub Copilot CLI is bundled with Planeteer — no separate installation needed
+- **Automatic fallback**: Uses bundled CLI by default, falls back to system-installed CLI if available
+- **Version detection**: Displays CLI version and source (bundled vs. system) on the home screen
+- **Multi-turn clarification**: Copilot asks questions to understand your project requirements
+- **Smart work breakdown**: Generates tasks with acceptance criteria and dependency graphs
+- **Parallel execution**: Runs independent tasks simultaneously via Copilot agents
+- **Progress tracking**: Real-time updates on task execution with event logs
+
 ## Usage
 
 ```bash
@@ -157,6 +168,32 @@ Plans are saved to `.planeteer/` in the current working directory:
 - `<plan-id>.json` — Machine-readable plan (used by the app)
 - `<plan-id>.md` — Human-readable Markdown export
 
+## Troubleshooting
+
+### CLI Not Found
+
+If you see "GitHub Copilot CLI not found" errors:
+
+1. **Reinstall dependencies**: `npm install` (ensures bundled CLI is installed)
+2. **Check platform support**: The bundled CLI supports Linux (x64, arm64), macOS (x64, arm64), and Windows (x64, arm64)
+3. **Manual installation**: As a fallback, install globally with `npm install -g @github/copilot`
+
+### Authentication Issues
+
+The Copilot CLI requires GitHub authentication:
+
+1. On first use, you'll be prompted to authenticate via your browser
+2. You need an active GitHub Copilot subscription
+3. If authentication fails, try running `copilot auth` in your terminal
+
+### CLI Version Mismatch
+
+If you experience issues with the bundled CLI:
+
+- Check the CLI version on the home screen (displays as `[bundled CLI vX.X.X]`)
+- The bundled version is tied to `@github/copilot-sdk` version in package.json
+- To use a newer CLI, install it globally: `npm install -g @github/copilot`
+
 ## Project Structure
 
 ```
@@ -180,6 +217,7 @@ src/
 ├── models/
 │   └── plan.ts            # Types: Plan, Task, ChatMessage
 └── utils/
+    ├── cli-locator.ts     # Locate bundled/system Copilot CLI
     ├── dependency-graph.ts # Topological sort & cycle detection
     └── markdown.ts        # Plan → Markdown renderer
 ```
diff --git a/src/screens/home.tsx b/src/screens/home.tsx
index 68e2d50..84001ae 100644
--- a/src/screens/home.tsx
+++ b/src/screens/home.tsx
@@ -3,7 +3,8 @@ import { Box, Text, useInput } from 'ink';
 import SelectInput from 'ink-select-input';
 import type { Plan } from '../models/plan.js';
 import { listPlans, loadPlan, summarizePlan } from '../services/persistence.js';
-import { fetchModels, getModel, setModel, getModelLabel, type ModelEntry } from '../services/copilot.js';
+import { fetchModels, getModel, setModel, getModelLabel, getCliInfo, type ModelEntry } from '../services/copilot.js';
+import type { CliInfo } from '../utils/cli-locator.js';
 import StatusBar from '../components/status-bar.js';
 
 interface HomeScreenProps {
@@ -23,12 +24,17 @@ export default function HomeScreen({ onNewPlan, onLoadPlan, onExecutePlan, onVal
   const [commandMode, setCommandMode] = useState(false);
   const [selectedPlanId, setSelectedPlanId] = useState<string | null>(null);
   const [summarized, setSummarized] = useState('');
+  const [cliInfo, setCliInfo] = useState<CliInfo | null>(null);
 
   React.useEffect(() => {
     listPlans().then((plans) => {
       setSavedPlans(plans);
       setLoaded(true);
     });
+    // Load CLI info asynchronously (off the initial render path)
+    Promise.resolve().then(() => {
+      setCliInfo(getCliInfo());
+    });
   }, []);
 
   const items = [
@@ -113,6 +119,9 @@ export default function HomeScreen({ onNewPlan, onLoadPlan, onExecutePlan, onVal
       <Box marginBottom={1}>
         <Text bold color="green">🌍 Planeteer</Text>
         <Text color="gray"> — AI-powered work breakdown</Text>
+        {cliInfo && (
+          <Text color="dim"> [{cliInfo.source} CLI v{cliInfo.version}]</Text>
+        )}
       </Box>
 
       {showModelPicker ? (
diff --git a/src/services/copilot.ts b/src/services/copilot.ts
index b691e58..791c6df 100644
--- a/src/services/copilot.ts
+++ b/src/services/copilot.ts
@@ -3,6 +3,7 @@ import { readFile, writeFile, mkdir } from 'node:fs/promises';
 import { join } from 'node:path';
 import { existsSync } from 'node:fs';
 import type { ChatMessage } from '../models/plan.js';
+import { locateCopilotCli, type CliInfo } from '../utils/cli-locator.js';
 
 const SETTINGS_PATH = join(process.cwd(), '.planeteer', 'settings.json');
 
@@ -78,14 +79,71 @@ export function getModelLabel(): string {
 
 let client: CopilotClient | null = null;
 let clientPromise: Promise<CopilotClient> | null = null;
+let cliLocation: CliInfo | null = null;
+
+/** Initialize CLI location info early (doesn't start the client). */
+export function initCliInfo(): void {
+  if (!cliLocation) {
+    const location = locateCopilotCli();
+    if (location) {
+      cliLocation = location;
+    }
+  }
+}
+
+/** Get information about the CLI being used. */
+export function getCliInfo(): CliInfo | null {
+  // Initialize on first access if not already done
+  if (!cliLocation) {
+    initCliInfo();
+  }
+  return cliLocation;
+}
 
 export async function getClient(): Promise<CopilotClient> {
   if (client) return client;
   if (clientPromise) return clientPromise;
 
   clientPromise = (async () => {
-    const c = new CopilotClient();
-    await c.start();
+    // Initialize CLI location if not already done
+    initCliInfo();
+    
+    // Use the cached location
+    if (!cliLocation) {
+      throw new Error(
+        'GitHub Copilot CLI not found.\n\n' +
+        'The bundled CLI should be automatically available, but it appears to be missing.\n' +
+        'Please try:\n' +
+        '  1. Reinstalling dependencies: npm install\n' +
+        '  2. Installing the CLI globally: npm install -g @github/copilot\n\n' +
+        'If the problem persists, please report this issue.'
+      );
+    }
+
+    // Create client with the located CLI path
+    const c = new CopilotClient({
+      cliPath: cliLocation.path,
+    });
+    
+    try {
+      await c.start();
+    } catch (err) {
+      const message = (err as Error).message || 'Unknown error';
+      const enhancedError = new Error(
+        `Failed to start GitHub Copilot CLI.\n\n` +
+        `Error: ${message}\n\n` +
+        `The CLI was found at: ${cliLocation.path}\n` +
+        `Version: ${cliLocation.version}\n` +
+        `Source: ${cliLocation.source}\n\n` +
+        `Please ensure you have:\n` +
+        `  1. Authenticated with GitHub Copilot (the CLI will prompt you)\n` +
+        `  2. Active GitHub Copilot subscription\n` +
+        `  3. Proper permissions to execute the CLI binary`,
+        { cause: err }
+      );
+      throw enhancedError;
+    }
+    
     client = c;
     return c;
   })();
diff --git a/src/utils/cli-locator.test.ts b/src/utils/cli-locator.test.ts
new file mode 100644
index 0000000..0f3ae4a
--- /dev/null
+++ b/src/utils/cli-locator.test.ts
@@ -0,0 +1,30 @@
+import { describe, it, expect } from 'vitest';
+import { locateCopilotCli } from './cli-locator.js';
+
+describe('cli-locator', () => {
+  it('should return null or valid CLI info', () => {
+    const location = locateCopilotCli();
+    
+    // Location may be null if CLI is not available (e.g., CI with --omit=optional)
+    if (location) {
+      expect(location.path).toBeTruthy();
+      expect(['bundled', 'system']).toContain(location.source);
+      expect(location.version).toBeTruthy();
+    } else {
+      // If no CLI is found, location should be null
+      expect(location).toBeNull();
+    }
+  });
+
+  it('should return valid structure when CLI is found', () => {
+    const location = locateCopilotCli();
+    
+    // Only validate structure if a CLI was found
+    if (location) {
+      expect(location).toHaveProperty('path');
+      expect(location).toHaveProperty('version');
+      expect(location).toHaveProperty('source');
+      expect(location.source).toMatch(/^(bundled|system)$/);
+    }
+  });
+});
diff --git a/src/utils/cli-locator.ts b/src/utils/cli-locator.ts
new file mode 100644
index 0000000..f3c2ecb
--- /dev/null
+++ b/src/utils/cli-locator.ts
@@ -0,0 +1,158 @@
+import { existsSync } from 'node:fs';
+import { join, dirname } from 'node:path';
+import { fileURLToPath } from 'node:url';
+import { execFileSync } from 'node:child_process';
+
+export interface CliInfo {
+  path: string;
+  version: string;
+  source: 'bundled' | 'system';
+}
+
+/**
+ * Locate the bundled Copilot CLI binary.
+ * Returns the path if found, otherwise null.
+ */
+function findBundledCli(): string | null {
+  try {
+    // Try to resolve the platform-specific package
+    const platform = process.platform;
+    const arch = process.arch;
+    const packageName = `@github/copilot-${platform}-${arch}`;
+    
+    // Attempt to resolve via import.meta.resolve
+    try {
+      const resolved = import.meta.resolve(packageName);
+      const packagePath = fileURLToPath(resolved);
+      const binaryDir = dirname(packagePath);
+      const binaryName = platform === 'win32' ? 'copilot.exe' : 'copilot';
+      const binaryPath = join(binaryDir, binaryName);
+      
+      if (existsSync(binaryPath)) {
+        return binaryPath;
+      }
+    } catch {
+      // If import.meta.resolve fails, try manual path construction
+    }
+
+    // Fallback: Construct path from this file's location
+    // Assuming this file is in src/utils/ and node_modules is at repo root
+    const currentFile = fileURLToPath(import.meta.url);
+    const repoRoot = join(dirname(currentFile), '..', '..');
+    
+    // Try node_modules location
+    const nodeModulesPath = join(
+      repoRoot,
+      'node_modules',
+      '@github',
+      `copilot-${platform}-${arch}`,
+      platform === 'win32' ? 'copilot.exe' : 'copilot'
+    );
+    
+    if (existsSync(nodeModulesPath)) {
+      return nodeModulesPath;
+    }
+
+    // Try prebuilds location (legacy structure)
+    const prebuildsPath = join(
+      repoRoot,
+      'node_modules',
+      '@github',
+      'copilot',
+      'prebuilds',
+      `${platform}-${arch}`,
+      platform === 'win32' ? 'copilot.exe' : 'copilot'
+    );
+    
+    if (existsSync(prebuildsPath)) {
+      return prebuildsPath;
+    }
+  } catch {
+    // Ignore errors
+  }
+
+  return null;
+}
+
+/**
+ * Find the system-installed Copilot CLI.
+ * Returns the path if found, otherwise null.
+ */
+function findSystemCli(): string | null {
+  try {
+    const executable = process.platform === 'win32' ? 'where' : 'which';
+    const result = execFileSync(executable, ['copilot'], {
+      encoding: 'utf-8',
+      // Prevent PATH lookups from hanging indefinitely
+      timeout: 2000,
+    });
+    const path = result.trim().split('\n')[0];
+    
+    if (path && existsSync(path)) {
+      return path;
+    }
+  } catch (error) {
+    // On timeout or lookup errors, treat as "CLI not in PATH"
+    return null;
+  }
+
+  return null;
+}
+
+/**
+ * Get the version of a CLI binary.
+ */
+function getCliVersion(cliPath: string): string {
+  try {
+    const result = execFileSync(cliPath, ['--version'], {
+      encoding: 'utf-8',
+      timeout: 5000,
+    });
+    
+    // Parse version from output (e.g., "GitHub Copilot CLI 0.0.403")
+    const match = result.match(/(\d+\.\d+\.\d+)/);
+    return match ? match[1] : 'unknown';
+  } catch {
+    return 'unknown';
+  }
+}
+
+/**
+ * Locate the Copilot CLI binary, checking bundled first, then system.
+ * Returns null if no CLI is found.
+ */
+export function locateCopilotCli(): CliInfo | null {
+  // Try bundled CLI first
+  const bundledPath = findBundledCli();
+  if (bundledPath) {
+    const version = getCliVersion(bundledPath);
+    return { path: bundledPath, version, source: 'bundled' };
+  }
+
+  // Fallback to system CLI
+  const systemPath = findSystemCli();
+  if (systemPath) {
+    const version = getCliVersion(systemPath);
+    return { path: systemPath, version, source: 'system' };
+  }
+
+  return null;
+}
+
+/**
+ * Check if the CLI binary is executable.
+ * Returns true if the binary can be executed, false otherwise.
+ * Note: This does NOT verify authentication status.
+ */
+export function checkCliExecutable(cliPath: string): boolean {
+  try {
+    // Run a simple command to verify the binary is executable
+    execFileSync(cliPath, ['--help'], {
+      encoding: 'utf-8',
+      timeout: 5000,
+    });
+    return true;
+  } catch {
+    return false;
+  }
+}