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+---
+name: Auto-Open Project on Server Startup
+test_plan: pending
+---
+
+# Story 38: Auto-Open Project on Server Startup
+
+## User Story
+
+As a developer using Story Kit from the terminal (no browser), I want the server to automatically open the project when it starts inside a .story_kit project directory, so that MCP tools and agents work immediately without needing to hit the open-project API or use the web UI.
+
+## Acceptance Criteria
+
+- [ ] Server detects .story_kit/ in cwd or parent directories at startup
+- [ ] If found, automatically calls the open-project logic with that root path
+- [ ] MCP tools (e.g. list_upcoming, start_agent) work immediately after cargo run without any manual project-open step
+- [ ] Existing web UI project-open flow continues to work unchanged
+- [ ] If no .story_kit/ is found, server starts normally without a project (current behavior)
+
+## Out of Scope
+
+- TBD