diff --git a/frontend/src-tauri/src/commands/backend.rs b/frontend/src-tauri/src/commands/backend.rs
index af2b149bc..aed5f0b87 100644
--- a/frontend/src-tauri/src/commands/backend.rs
+++ b/frontend/src-tauri/src/commands/backend.rs
@@ -398,10 +398,6 @@ pub async fn start_backend(
         e
     })?;
 
-    // Wait for the backend to start
-    println!("⏳ Waiting for backend startup...");
-    tokio::time::sleep(std::time::Duration::from_millis(10000)).await;
-
     // Reset the starting flag since startup is complete
     reset_starting_flag();
     add_log("✅ Backend startup sequence completed, starting flag cleared".to_string());
diff --git a/frontend/src-tauri/src/lib.rs b/frontend/src-tauri/src/lib.rs
index e4f15ddc9..cb8faf04b 100644
--- a/frontend/src-tauri/src/lib.rs
+++ b/frontend/src-tauri/src/lib.rs
@@ -66,7 +66,7 @@ pub fn run() {
       // Emit a generic notification that files were added (frontend will re-read storage)
       let _ = app.emit("files-changed", ());
     }))
-    .setup(|_app| {
+    .setup(|app| {
       add_log("🚀 Tauri app setup started".to_string());
 
       // Process command line arguments on first launch
@@ -78,6 +78,17 @@ pub fn run() {
         }
       }
 
+      // Start backend immediately, non-blocking
+      let app_handle = app.handle().clone();
+
+      tauri::async_runtime::spawn(async move {
+        add_log("🚀 Starting bundled backend in background".to_string());
+        let connection_state = app_handle.state::<AppConnectionState>();
+        if let Err(e) = commands::backend::start_backend(app_handle.clone(), connection_state).await {
+          add_log(format!("⚠️ Backend start failed: {}", e));
+        }
+      });
+
       add_log("🔍 DEBUG: Setup completed".to_string());
       Ok(())
     })
diff --git a/frontend/src/desktop/components/AppProviders.tsx b/frontend/src/desktop/components/AppProviders.tsx
index 84d455c51..6b82fd820 100644
--- a/frontend/src/desktop/components/AppProviders.tsx
+++ b/frontend/src/desktop/components/AppProviders.tsx
@@ -31,10 +31,10 @@ export function AppProviders({ children }: { children: ReactNode }) {
     }
   }, [setupComplete, isFirstLaunch, connectionMode]);
 
-  // Only start bundled backend if in SaaS mode (local backend) and setup is complete
-  // Self-hosted mode connects to remote server so doesn't need local backend
-  const shouldStartBackend = setupComplete && !isFirstLaunch && connectionMode === 'saas';
-  useBackendInitializer(shouldStartBackend);
+  // Initialize monitoring for bundled backend (already started in Rust)
+  // This sets up port detection and health checks
+  const shouldMonitorBackend = setupComplete && !isFirstLaunch && connectionMode === 'saas';
+  useBackendInitializer(shouldMonitorBackend);
 
   // Show setup wizard on first launch
   if (isFirstLaunch && !setupComplete) {
@@ -51,23 +51,7 @@ export function AppProviders({ children }: { children: ReactNode }) {
         }}
       >
         <SetupWizard
-          onComplete={async () => {
-            // Wait for backend to become healthy before reloading
-            // This prevents reloading mid-startup which would interrupt the backend
-            const maxWaitTime = 60000; // 60 seconds max
-            const checkInterval = 1000; // Check every second
-            const startTime = Date.now();
-
-            while (Date.now() - startTime < maxWaitTime) {
-              if (tauriBackendService.isBackendHealthy()) {
-                window.location.reload();
-                return;
-              }
-              await new Promise(resolve => setTimeout(resolve, checkInterval));
-            }
-
-            // If we timeout, reload anyway
-            console.warn('[AppProviders] Backend health check timeout, reloading anyway...');
+          onComplete={() => {
             window.location.reload();
           }}
         />
diff --git a/frontend/src/desktop/components/SetupWizard/index.tsx b/frontend/src/desktop/components/SetupWizard/index.tsx
index a1e0fbf5f..c05e503de 100644
--- a/frontend/src/desktop/components/SetupWizard/index.tsx
+++ b/frontend/src/desktop/components/SetupWizard/index.tsx
@@ -61,7 +61,7 @@ export const SetupWizard: React.FC<SetupWizardProps> = ({ onComplete }) => {
       }
 
       await connectionModeService.switchToSaaS(serverConfig.url);
-      await tauriBackendService.startBackend();
+      tauriBackendService.startBackend().catch(console.error);
       onComplete();
     } catch (err) {
       console.error('SaaS login failed:', err);