diff --git a/bastion/src/labd/src/server.ts b/bastion/src/labd/src/server.ts
index 9da02bb..ec55573 100644
--- a/bastion/src/labd/src/server.ts
+++ b/bastion/src/labd/src/server.ts
@@ -2,6 +2,7 @@
 
 import Fastify from "fastify";
 import websocket from "@fastify/websocket";
+import type { PrismaClient } from "@prisma/client";
 import type { LabdConfig } from "./config.js";
 import { logger } from "./services/logger.js";
 import { registerHealthRoutes } from "./routes/health.js";
@@ -9,8 +10,16 @@ import { registerServerRoutes } from "./routes/servers.js";
 import { registerAuthRoutes } from "./routes/auth.js";
 import { registerAgentRoutes } from "./routes/agents.js";
 import { registerBastionRoutes } from "./routes/bastions.js";
+import { registerV2AuthRoutes } from "./routes/v2-auth.js";
+import { registerEnvironmentRoutes } from "./routes/environments.js";
+import { registerResourceRoutes } from "./routes/resources.js";
 import { setupRateLimiting } from "./middleware/rate-limit.js";
+import { createBearerAuthMiddleware } from "./middleware/bearer-auth.js";
 import { bastionRegistry } from "./services/bastion-registry.js";
+import { AuthService } from "./services/auth.js";
+import { RbacService } from "./services/rbac.js";
+import { ResourceStore } from "./services/resource-store.js";
+import { AuditService } from "./services/audit.js";
 import { isBastionMessage } from "@lab/shared";
 
 export interface DbClient {
@@ -37,6 +46,7 @@ export interface DbClient {
 
 export async function createApp(_config: LabdConfig, db: DbClient): Promise<{
   app: ReturnType<typeof Fastify>;
+  auditService: AuditService;
 }> {
   const app = Fastify({
     logger: false, // We use winston instead
@@ -48,13 +58,39 @@ export async function createApp(_config: LabdConfig, db: DbClient): Promise<{
   // Register WebSocket support
   void app.register(websocket);
 
-  // Register route handlers
+  // v2 services. The structural DbClient is a subset of the real PrismaClient;
+  // at runtime db IS the PrismaClient instance, so the cast is safe. Tests that
+  // exercise v2 routes provide a PrismaClient-shaped mock (see auth-bootstrap,
+  // rbac-deny, audit-correlation tests).
+  const prisma = db as unknown as PrismaClient;
+  const authService = new AuthService(prisma);
+  const rbacService = new RbacService(prisma);
+  const resourceStore = new ResourceStore(prisma);
+  const auditService = new AuditService(prisma);
+  auditService.start();
+
+  // Register v1 (legacy) route handlers
   registerHealthRoutes(app, db);
   registerServerRoutes(app, db);
   registerAuthRoutes(app, db);
   registerAgentRoutes(app);
   registerBastionRoutes(app, db);
 
+  // v2 routes live in a scope with bearer-auth as preHandler. Public paths
+  // (login, /health, websockets) are skipped inside the middleware itself.
+  // v1 routes above are unaffected — they're registered on the root scope.
+  await app.register(async (scope) => {
+    scope.addHook("preHandler", createBearerAuthMiddleware(authService));
+    registerV2AuthRoutes(scope, authService, auditService);
+    registerEnvironmentRoutes(scope, prisma, rbacService, auditService);
+    registerResourceRoutes(scope, resourceStore, rbacService, auditService);
+  });
+
+  // Flush pending audit events on shutdown so we never lose the last batch.
+  app.addHook("onClose", async () => {
+    auditService.stop();
+  });
+
   // WebSocket handler for agent connections
   app.register(async (fastify) => {
     fastify.get("/ws/agent", { websocket: true }, (socket, _request) => {
@@ -267,5 +303,5 @@ export async function createApp(_config: LabdConfig, db: DbClient): Promise<{
     logger.info(`HTTP: ${request.ip} ${request.method} ${request.url}`);
   });
 
-  return { app };
+  return { app, auditService };
 }
diff --git a/bastion/src/labd/src/services/audit.ts b/bastion/src/labd/src/services/audit.ts
index d2ab3ad..096cac9 100644
--- a/bastion/src/labd/src/services/audit.ts
+++ b/bastion/src/labd/src/services/audit.ts
@@ -66,6 +66,12 @@ export class AuditService {
     return `corr_${randomBytes(8).toString("hex")}`;
   }
 
+  /** Flush all pending events synchronously. Tests await this; production
+   * relies on the interval timer or stop() during shutdown. */
+  async flushPending(): Promise<void> {
+    await this.flush();
+  }
+
   private async flush(): Promise<void> {
     if (this.batch.length === 0) return;
 
diff --git a/bastion/src/labd/tests/v2-smoke.test.ts b/bastion/src/labd/tests/v2-smoke.test.ts
new file mode 100644
index 0000000..4d0ae96
--- /dev/null
+++ b/bastion/src/labd/tests/v2-smoke.test.ts
@@ -0,0 +1,425 @@
+// End-to-end smoke tests for the v2.0 Phase 1 surface (auth bootstrap, RBAC,
+// audit correlation). These exercise the wiring in createApp(): the bearer
+// auth middleware, the v2 routes scope, and the AuditService lifecycle.
+//
+// We don't spin up CockroachDB. Instead we provide a PrismaClient-shaped
+// in-memory mock that matches the surface the v2 services actually touch.
+// Tests follow the project convention of using mock DBs + Fastify.inject().
+
+import { describe, it, expect, beforeEach, afterEach, vi } from "vitest";
+import bcrypt from "bcryptjs";
+import { createApp } from "../src/server.js";
+import type { DbClient } from "../src/server.js";
+import type { AuditService } from "../src/services/audit.js";
+
+const TEST_CONFIG = { port: 0, host: "127.0.0.1", databaseUrl: "", caDir: "/tmp", logLevel: "silent" };
+
+interface UserRow { id: string; email: string; password: string; role: string; name: string | null; }
+interface SessionRow { id: string; userId: string; token: string; expiresAt: Date; user?: UserRow; }
+interface RbacDefRow { id: string; name: string; subjects: unknown; roleBindings: unknown; }
+interface AuditEventRow {
+  id: string;
+  eventKind: string;
+  source: string;
+  verified: boolean;
+  userId: string | null;
+  userName: string | null;
+  environmentName: string | null;
+  resourceKind: string | null;
+  correlationId: string | null;
+  parentEventId: string | null;
+  details: unknown;
+  result: string;
+  error: string | null;
+  durationMs: number | null;
+  timestamp: Date;
+}
+
+interface Stores {
+  users: Map<string, UserRow>;
+  sessions: Map<string, SessionRow>;
+  groupMembers: Array<{ userId: string; group: { name: string } }>;
+  rbacDefs: RbacDefRow[];
+  auditEvents: AuditEventRow[];
+  resources: Array<Record<string, unknown>>;
+}
+
+function makeStores(): Stores {
+  return {
+    users: new Map(),
+    sessions: new Map(),
+    groupMembers: [],
+    rbacDefs: [],
+    auditEvents: [],
+    resources: [],
+  };
+}
+
+function makeMockDb(s: Stores): DbClient {
+  let idCounter = 0;
+  const newId = (prefix: string): string => `${prefix}-${++idCounter}`;
+
+  return {
+    $queryRaw: vi.fn(async () => [{ "?column?": 1 }]),
+    server: { findMany: vi.fn(async () => []), findUnique: vi.fn(), upsert: vi.fn() },
+    joinToken: { findUnique: vi.fn(), findMany: vi.fn(), create: vi.fn(), update: vi.fn() },
+    bastion: { upsert: vi.fn(), findMany: vi.fn(), findUnique: vi.fn(), update: vi.fn() },
+
+    user: {
+      count: vi.fn(async () => s.users.size),
+      findUnique: vi.fn(async (args: { where: { email?: string; id?: string } }) => {
+        if (args.where.email) {
+          for (const u of s.users.values()) if (u.email === args.where.email) return u;
+        }
+        if (args.where.id) return s.users.get(args.where.id) ?? null;
+        return null;
+      }),
+      create: vi.fn(async (args: { data: Omit<UserRow, "id"> }) => {
+        const id = newId("user");
+        const row: UserRow = { id, ...args.data };
+        s.users.set(id, row);
+        return row;
+      }),
+    },
+    session: {
+      findUnique: vi.fn(async (args: { where: { token?: string; id?: string }; include?: { user?: boolean } }) => {
+        let session: SessionRow | undefined;
+        if (args.where.token) {
+          for (const sess of s.sessions.values()) if (sess.token === args.where.token) { session = sess; break; }
+        } else if (args.where.id) {
+          session = s.sessions.get(args.where.id);
+        }
+        if (!session) return null;
+        if (args.include?.user) {
+          return { ...session, user: s.users.get(session.userId)! };
+        }
+        return session;
+      }),
+      create: vi.fn(async (args: { data: { userId: string; token: string; expiresAt: Date } }) => {
+        const id = newId("sess");
+        const row: SessionRow = { id, ...args.data };
+        s.sessions.set(id, row);
+        return row;
+      }),
+      delete: vi.fn(async (args: { where: { id: string } }) => {
+        s.sessions.delete(args.where.id);
+        return null;
+      }),
+    },
+    groupMember: {
+      findMany: vi.fn(async (args: { where: { userId: string } }) =>
+        s.groupMembers.filter((m) => m.userId === args.where.userId),
+      ),
+    },
+    rbacDefinition: {
+      findMany: vi.fn(async () => s.rbacDefs),
+    },
+    auditEvent: {
+      createMany: vi.fn(async (args: { data: Array<Omit<AuditEventRow, "id" | "timestamp">> }) => {
+        const ts = new Date();
+        for (const e of args.data) {
+          s.auditEvents.push({ id: newId("evt"), timestamp: ts, ...e });
+        }
+        return { count: args.data.length };
+      }),
+      findMany: vi.fn(async (args: { where?: Record<string, unknown>; orderBy?: unknown; take?: number }) => {
+        const where = args.where ?? {};
+        const filtered = s.auditEvents.filter((e) => {
+          if (where["eventKind"] && e.eventKind !== where["eventKind"]) return false;
+          if (where["correlationId"] && e.correlationId !== where["correlationId"]) return false;
+          if (where["environmentName"] && e.environmentName !== where["environmentName"]) return false;
+          return true;
+        });
+        return filtered.slice(0, args.take ?? 100);
+      }),
+    },
+    resource: {
+      findMany: vi.fn(async () => s.resources),
+      findUnique: vi.fn(),
+      create: vi.fn(),
+      update: vi.fn(),
+      delete: vi.fn(),
+    },
+    environment: { findMany: vi.fn(async () => []), findUnique: vi.fn(), create: vi.fn() },
+    account: { findMany: vi.fn(async () => []), findUnique: vi.fn(), create: vi.fn() },
+    binding: { findMany: vi.fn(async () => []), create: vi.fn() },
+  } as unknown as DbClient;
+}
+
+async function buildApp(s: Stores) {
+  const db = makeMockDb(s);
+  const result = await createApp(TEST_CONFIG, db);
+  await result.app.ready();
+  return result;
+}
+
+describe("v2 auth: bootstrap flow", () => {
+  let stores: Stores;
+  let app: Awaited<ReturnType<typeof buildApp>>["app"];
+  let auditService: AuditService;
+
+  beforeEach(async () => {
+    stores = makeStores();
+    const built = await buildApp(stores);
+    app = built.app;
+    auditService = built.auditService;
+  });
+
+  afterEach(async () => {
+    await app.close(); // triggers auditService.stop()
+  });
+
+  it("first login with no users seeds the admin and returns a session token", async () => {
+    expect(stores.users.size).toBe(0);
+
+    const resp = await app.inject({
+      method: "POST",
+      url: "/api/auth/login",
+      payload: { email: "admin@itaz.eu", password: "s3cret-pw" },
+    });
+
+    expect(resp.statusCode).toBe(200);
+    const body = resp.json();
+    expect(body.isBootstrap).toBe(true);
+    expect(body.token).toMatch(/^[a-f0-9]{64}$/);
+    expect(typeof body.expiresAt).toBe("string");
+
+    expect(stores.users.size).toBe(1);
+    const created = [...stores.users.values()][0]!;
+    expect(created.email).toBe("admin@itaz.eu");
+    expect(created.role).toBe("ADMIN");
+    // Password is hashed, not stored plaintext.
+    expect(created.password).not.toBe("s3cret-pw");
+    expect(await bcrypt.compare("s3cret-pw", created.password)).toBe(true);
+
+    // Bootstrap emits an audit event.
+    await auditService.flushPending();
+    const bootstrapEvents = stores.auditEvents.filter((e) => e.eventKind === "auth_bootstrap");
+    expect(bootstrapEvents).toHaveLength(1);
+    expect(bootstrapEvents[0]!.result).toBe("success");
+    expect(bootstrapEvents[0]!.userName).toBe("admin@itaz.eu");
+  });
+
+  it("returns 400 for missing credentials", async () => {
+    const resp = await app.inject({ method: "POST", url: "/api/auth/login", payload: {} });
+    expect(resp.statusCode).toBe(400);
+  });
+
+  it("second login uses normal flow (no isBootstrap)", async () => {
+    // Bootstrap once
+    await app.inject({
+      method: "POST",
+      url: "/api/auth/login",
+      payload: { email: "admin@itaz.eu", password: "s3cret-pw" },
+    });
+    expect(stores.users.size).toBe(1);
+
+    // Login again
+    const resp = await app.inject({
+      method: "POST",
+      url: "/api/auth/login",
+      payload: { email: "admin@itaz.eu", password: "s3cret-pw" },
+    });
+
+    expect(resp.statusCode).toBe(200);
+    expect(resp.json().isBootstrap).toBe(false);
+    expect(stores.users.size).toBe(1); // no new user
+  });
+
+  it("rejects wrong password with 401", async () => {
+    // Seed admin
+    await app.inject({
+      method: "POST",
+      url: "/api/auth/login",
+      payload: { email: "admin@itaz.eu", password: "s3cret-pw" },
+    });
+
+    const resp = await app.inject({
+      method: "POST",
+      url: "/api/auth/login",
+      payload: { email: "admin@itaz.eu", password: "wrong" },
+    });
+    expect(resp.statusCode).toBe(401);
+
+    // Failed login is also audited.
+    await auditService.flushPending();
+    const fails = stores.auditEvents.filter((e) => e.eventKind === "auth_login" && e.result === "failure");
+    expect(fails).toHaveLength(1);
+  });
+});
+
+describe("v2 RBAC: env-scoped denial", () => {
+  let stores: Stores;
+  let app: Awaited<ReturnType<typeof buildApp>>["app"];
+
+  async function seedSession(role: string): Promise<string> {
+    stores.users.set("u-1", {
+      id: "u-1",
+      email: `${role.toLowerCase()}@itaz.eu`,
+      password: "x",
+      role,
+      name: null,
+    });
+    const token = "test-token-" + role;
+    stores.sessions.set("s-1", {
+      id: "s-1",
+      userId: "u-1",
+      token,
+      expiresAt: new Date(Date.now() + 86_400_000),
+    });
+    return token;
+  }
+
+  beforeEach(async () => {
+    stores = makeStores();
+    app = (await buildApp(stores)).app;
+  });
+
+  afterEach(async () => {
+    await app.close();
+  });
+
+  it("non-admin user with no role bindings gets 403 on /api/resources", async () => {
+    const token = await seedSession("EDITOR"); // not admin, no bindings
+
+    const resp = await app.inject({
+      method: "GET",
+      url: "/api/resources",
+      headers: { authorization: `Bearer ${token}` },
+    });
+
+    expect(resp.statusCode).toBe(403);
+    expect(resp.json().error).toMatch(/no matching role binding/);
+  });
+
+  it("missing/empty bearer token gets 401 (auth, not RBAC)", async () => {
+    const r1 = await app.inject({ method: "GET", url: "/api/resources" });
+    expect(r1.statusCode).toBe(401);
+
+    const r2 = await app.inject({
+      method: "GET",
+      url: "/api/resources",
+      headers: { authorization: "Bearer " },
+    });
+    expect(r2.statusCode).toBe(401);
+  });
+
+  it("invalid bearer token gets 401", async () => {
+    const resp = await app.inject({
+      method: "GET",
+      url: "/api/resources",
+      headers: { authorization: "Bearer not-a-real-token" },
+    });
+    expect(resp.statusCode).toBe(401);
+  });
+
+  it("admin role bypasses RBAC", async () => {
+    const token = await seedSession("ADMIN");
+
+    const resp = await app.inject({
+      method: "GET",
+      url: "/api/resources",
+      headers: { authorization: `Bearer ${token}` },
+    });
+
+    expect(resp.statusCode).toBe(200);
+    expect(resp.json()).toEqual([]);
+  });
+
+  it("user with binding for env A is denied for resources in env B", async () => {
+    const token = await seedSession("EDITOR");
+    stores.groupMembers.push({ userId: "u-1", group: { name: "team-a" } });
+    stores.rbacDefs.push({
+      id: "rbac-1",
+      name: "team-a-edit-on-env-a",
+      subjects: [{ kind: "Group", name: "team-a" }],
+      roleBindings: [{ role: "edit", environment: "env-a" }],
+    });
+
+    // List in env-a → should pass RBAC (no env query so it's global view, but
+    // the binding scope is environment-specific → for global list the binding
+    // doesn't apply when an environment scope is set on the binding).
+    // Smoke test the targeted denial: trying to create in env-b is rejected.
+    const respB = await app.inject({
+      method: "POST",
+      url: "/api/resources",
+      headers: { authorization: `Bearer ${token}` },
+      payload: { kind: "database", name: "x", environmentId: "env-b", accountId: "acc-1" },
+    });
+
+    expect(respB.statusCode).toBe(403);
+    expect(respB.json().error).toMatch(/no matching role binding/);
+  });
+});
+
+describe("v2 audit: correlation chain visible via /api/events", () => {
+  let stores: Stores;
+  let app: Awaited<ReturnType<typeof buildApp>>["app"];
+  let auditService: AuditService;
+
+  beforeEach(async () => {
+    stores = makeStores();
+    const built = await buildApp(stores);
+    app = built.app;
+    auditService = built.auditService;
+  });
+
+  afterEach(async () => {
+    await app.close();
+  });
+
+  it("emitted audit events are queryable by correlation id", async () => {
+    // Seed admin so /api/events is accessible (it sits behind bearer auth)
+    const loginResp = await app.inject({
+      method: "POST",
+      url: "/api/auth/login",
+      payload: { email: "admin@itaz.eu", password: "pw" },
+    });
+    const token = loginResp.json().token;
+
+    // Force flush so the bootstrap event is in the DB
+    await auditService.flushPending();
+
+    expect(stores.auditEvents.length).toBeGreaterThan(0);
+    const bootstrap = stores.auditEvents.find((e) => e.eventKind === "auth_bootstrap")!;
+    expect(bootstrap.correlationId).toMatch(/^corr_[a-f0-9]{16}$/);
+
+    // Query /api/events filtered by correlation id
+    const queryResp = await app.inject({
+      method: "GET",
+      url: `/api/events?correlation=${bootstrap.correlationId}`,
+      headers: { authorization: `Bearer ${token}` },
+    });
+
+    expect(queryResp.statusCode).toBe(200);
+    const events = queryResp.json() as Array<{ correlationId: string; eventKind: string }>;
+    expect(events.length).toBe(1);
+    expect(events[0]!.eventKind).toBe("auth_bootstrap");
+    expect(events[0]!.correlationId).toBe(bootstrap.correlationId);
+  });
+
+  it("explicit parent/child correlation chain is preserved across emits", async () => {
+    const correlationId = auditService.createCorrelation();
+
+    auditService.emit({
+      eventKind: "test_parent",
+      source: "test",
+      result: "success",
+      correlationId,
+    });
+    auditService.emit({
+      eventKind: "test_child",
+      source: "test",
+      result: "success",
+      correlationId,
+      parentEventId: "evt-1",
+    });
+
+    await auditService.flushPending();
+
+    const chain = stores.auditEvents.filter((e) => e.correlationId === correlationId);
+    expect(chain).toHaveLength(2);
+    expect(chain.map((e) => e.eventKind).sort()).toEqual(["test_child", "test_parent"]);
+    expect(chain.find((e) => e.eventKind === "test_child")!.parentEventId).toBe("evt-1");
+  });
+});