diff --git a/packages/backend/src/index.ts b/packages/backend/src/index.ts
index c6fb1f5..6cc74c5 100644
--- a/packages/backend/src/index.ts
+++ b/packages/backend/src/index.ts
@@ -4,6 +4,7 @@ import { createServer } from "http";
 import path from "path";
 import { fileURLToPath } from "url";
 import { initWebSocket, getClientCount } from "./services/ws.service.js";
+import workspaceRouter from "./routes/workspace.js";
 
 const __dirname = path.dirname(fileURLToPath(import.meta.url));
 const app = express();
@@ -22,6 +23,8 @@ app.get("/api/health", (_req, res) => {
   });
 });
 
+app.use("/api/workspace", workspaceRouter);
+
 const frontendDist = path.resolve(__dirname, "../../frontend/dist");
 app.use(express.static(frontendDist));
 app.get("*path", (_req, res) => {
diff --git a/packages/backend/src/routes/workspace.ts b/packages/backend/src/routes/workspace.ts
new file mode 100644
index 0000000..feafb0e
--- /dev/null
+++ b/packages/backend/src/routes/workspace.ts
@@ -0,0 +1,29 @@
+import { Router } from "express";
+import {
+  ensureWorkspaceStructure,
+  readConfig,
+  writeConfig,
+  getWorkspacePath,
+} from "../services/workspace.service.js";
+
+const router = Router();
+
+router.get("/config", async (_req, res) => {
+  const config = await readConfig();
+  const sanitized = { ...config, githubPat: config.githubPat ? "***" : undefined };
+  res.json(sanitized);
+});
+
+router.put("/config", async (req, res) => {
+  const current = await readConfig();
+  const updated = { ...current, ...req.body };
+  await writeConfig(updated);
+  res.json({ ok: true });
+});
+
+router.post("/init", async (_req, res) => {
+  await ensureWorkspaceStructure();
+  res.json({ ok: true, path: getWorkspacePath() });
+});
+
+export default router;
diff --git a/packages/backend/src/services/workspace.service.ts b/packages/backend/src/services/workspace.service.ts
new file mode 100644
index 0000000..1e327a0
--- /dev/null
+++ b/packages/backend/src/services/workspace.service.ts
@@ -0,0 +1,67 @@
+import fs from "fs/promises";
+import path from "path";
+
+const WORKSPACE_PATH = process.env.WORKSPACE_PATH || "/workspace";
+
+interface ForgeConfig {
+  githubPat?: string;
+  workspacePath: string;
+  nwnHomePath: string;
+  setupComplete: boolean;
+  editorState?: {
+    openTabs: string[];
+    activeTab?: string;
+    cursorPositions: Record<string, { line: number; column: number }>;
+  };
+}
+
+const REQUIRED_DIRS = [
+  "repos",
+  "server/modules",
+  "server/hak",
+  "server/tlk",
+  "server/servervault",
+  "server/database",
+  "server/development",
+  "server/override",
+  "server/portraits",
+  "logs",
+  "config",
+];
+
+export async function ensureWorkspaceStructure(): Promise<void> {
+  for (const dir of REQUIRED_DIRS) {
+    await fs.mkdir(path.join(WORKSPACE_PATH, dir), { recursive: true });
+  }
+}
+
+export async function readConfig(): Promise<ForgeConfig> {
+  const configPath = path.join(WORKSPACE_PATH, "config", "forge.json");
+  try {
+    const raw = await fs.readFile(configPath, "utf-8");
+    return JSON.parse(raw);
+  } catch {
+    return {
+      workspacePath: WORKSPACE_PATH,
+      nwnHomePath: process.env.NWN_HOME_PATH || "",
+      setupComplete: false,
+    };
+  }
+}
+
+export async function writeConfig(config: ForgeConfig): Promise<void> {
+  const configPath = path.join(WORKSPACE_PATH, "config", "forge.json");
+  await fs.writeFile(configPath, JSON.stringify(config, null, 2));
+}
+
+export function getWorkspacePath(): string {
+  return WORKSPACE_PATH;
+}
+
+export function getServerPath(...segments: string[]): string {
+  return path.join(WORKSPACE_PATH, "server", ...segments);
+}
+
+export function getRepoPath(repo: string, ...segments: string[]): string {
+  return path.join(WORKSPACE_PATH, "repos", repo, ...segments);
+}