diff --git a/server/src/chat/commands/setup.rs b/server/src/chat/commands/setup.rs
index 99d28087..0fe29c89 100644
--- a/server/src/chat/commands/setup.rs
+++ b/server/src/chat/commands/setup.rs
@@ -59,12 +59,17 @@ fn wizard_generate_reply(ctx: &CommandContext) -> String {
 }
 
 /// Compose a status reply for the `setup` command (no args).
+///
+/// If no wizard state exists, automatically initializes it so the user does
+/// not need to run `huskies init` manually.
 fn wizard_status_reply(ctx: &CommandContext) -> String {
+    if WizardState::load(ctx.project_root).is_none() {
+        WizardState::init_if_missing(ctx.project_root);
+    }
     match WizardState::load(ctx.project_root) {
         Some(state) => format_wizard_state(&state),
-        None => {
-            "No setup wizard active. Run `huskies init` in the project root to begin.".to_string()
-        }
+        None => "Unable to initialize setup wizard. Ensure the `.huskies/` directory exists."
+            .to_string(),
     }
 }
 
@@ -205,13 +210,18 @@ mod tests {
     }
 
     #[test]
-    fn setup_no_wizard_returns_helpful_message() {
+    fn setup_no_wizard_auto_initializes() {
         let dir = TempDir::new().unwrap();
+        std::fs::create_dir_all(dir.path().join(".huskies")).unwrap();
         let agents = Arc::new(crate::agents::AgentPool::new_test(4000));
         let rooms = Arc::new(Mutex::new(HashSet::new()));
         let ctx = make_ctx("", dir.path(), &agents, &rooms);
         let result = handle_setup(&ctx).unwrap();
-        assert!(result.contains("huskies init"));
+        // Bot should auto-initialize and return wizard status, not ask user to run huskies init.
+        assert!(result.contains("Setup wizard"));
+        assert!(!result.contains("huskies init"));
+        // Wizard state file should now exist.
+        assert!(WizardState::load(dir.path()).is_some());
     }
 
     #[test]