diff --git a/src/mcpd/src/bootstrap/system-project.ts b/src/mcpd/src/bootstrap/system-project.ts
index 444902e..2cb093e 100644
--- a/src/mcpd/src/bootstrap/system-project.ts
+++ b/src/mcpd/src/bootstrap/system-project.ts
@@ -7,12 +7,12 @@
 
 import type { PrismaClient } from '@prisma/client';
 
-/** Well-known owner ID for system-managed resources. */
-export const SYSTEM_OWNER_ID = 'system';
-
 /** Well-known project name for system prompts. */
 export const SYSTEM_PROJECT_NAME = 'mcpctl-system';
 
+/** Well-known email for the system user. */
+const SYSTEM_USER_EMAIL = 'system@mcpctl.local';
+
 interface SystemPromptDef {
   name: string;
   priority: number;
@@ -62,6 +62,18 @@ This will load relevant project context, policies, and guidelines tailored to yo
  * Uses upserts so this is safe to call on every startup.
  */
 export async function bootstrapSystemProject(prisma: PrismaClient): Promise<void> {
+  // Ensure a system user exists (needed as project owner)
+  const systemUser = await prisma.user.upsert({
+    where: { email: SYSTEM_USER_EMAIL },
+    create: {
+      email: SYSTEM_USER_EMAIL,
+      name: 'System',
+      passwordHash: '!locked', // Cannot login — not a real password hash
+      role: 'USER',
+    },
+    update: {},
+  });
+
   // Upsert the system project
   const project = await prisma.project.upsert({
     where: { name: SYSTEM_PROJECT_NAME },
@@ -71,7 +83,7 @@ export async function bootstrapSystemProject(prisma: PrismaClient): Promise<void
       prompt: '',
       proxyMode: 'direct',
       gated: false,
-      ownerId: SYSTEM_OWNER_ID,
+      ownerId: systemUser.id,
     },
     update: {}, // Don't overwrite user edits to the project itself
   });
diff --git a/src/mcpd/tests/bootstrap-system-project.test.ts b/src/mcpd/tests/bootstrap-system-project.test.ts
index e56899d..e4f97c3 100644
--- a/src/mcpd/tests/bootstrap-system-project.test.ts
+++ b/src/mcpd/tests/bootstrap-system-project.test.ts
@@ -1,5 +1,5 @@
 import { describe, it, expect, vi, beforeEach } from 'vitest';
-import { bootstrapSystemProject, SYSTEM_PROJECT_NAME, SYSTEM_OWNER_ID, getSystemPromptNames } from '../src/bootstrap/system-project.js';
+import { bootstrapSystemProject, SYSTEM_PROJECT_NAME, getSystemPromptNames } from '../src/bootstrap/system-project.js';
 import type { PrismaClient } from '@prisma/client';
 
 function mockPrisma(): PrismaClient {
@@ -7,6 +7,13 @@ function mockPrisma(): PrismaClient {
   let promptIdCounter = 1;
 
   return {
+    user: {
+      upsert: vi.fn(async () => ({
+        id: 'sys-user-id',
+        email: 'system@mcpctl.local',
+        name: 'System',
+      })),
+    },
     project: {
       upsert: vi.fn(async (args: { where: { name: string }; create: Record<string, unknown>; update: Record<string, unknown> }) => ({
         id: 'sys-proj-id',
@@ -35,6 +42,20 @@ describe('bootstrapSystemProject', () => {
     prisma = mockPrisma();
   });
 
+  it('creates a system user via upsert', async () => {
+    await bootstrapSystemProject(prisma);
+
+    expect(prisma.user.upsert).toHaveBeenCalledWith(
+      expect.objectContaining({
+        where: { email: 'system@mcpctl.local' },
+        create: expect.objectContaining({
+          email: 'system@mcpctl.local',
+          name: 'System',
+        }),
+      }),
+    );
+  });
+
   it('creates the mcpctl-system project via upsert', async () => {
     await bootstrapSystemProject(prisma);
 
@@ -43,7 +64,7 @@ describe('bootstrapSystemProject', () => {
         where: { name: SYSTEM_PROJECT_NAME },
         create: expect.objectContaining({
           name: SYSTEM_PROJECT_NAME,
-          ownerId: SYSTEM_OWNER_ID,
+          ownerId: 'sys-user-id',
           gated: false,
         }),
         update: {},