diff --git a/crates/switchyard-server/src/cli.rs b/crates/switchyard-server/src/cli.rs
index 231d4e2bc..4a68b599b 100644
--- a/crates/switchyard-server/src/cli.rs
+++ b/crates/switchyard-server/src/cli.rs
@@ -16,6 +16,13 @@ use switchyard_server::{
 const DEFAULT_HOST: IpAddr = IpAddr::V4(Ipv4Addr::UNSPECIFIED);
 const DEFAULT_PORT: u16 = 4000;
 
+/// Default pidfile path used by `--detach` when `--pidfile` is omitted.
+pub(crate) fn default_pidfile() -> PathBuf {
+    let mut dir = std::env::temp_dir();
+    dir.push("switchyard-server.pid");
+    dir
+}
+
 /// Command-line arguments accepted by the Rust server binary.
 #[derive(Debug, Parser)]
 #[command(
@@ -59,6 +66,14 @@ pub(crate) struct ServerArgs {
     /// TLS private-key path in PEM format.
     #[arg(long, requires = "tls_cert")]
     tls_key: Option<PathBuf>,
+
+    /// Detach into a new session and run in the background (Unix `setsid`).
+    #[arg(long)]
+    pub(crate) detach: bool,
+
+    /// Write the background process id to this file when `--detach` is set.
+    #[arg(long, value_name = "PATH", default_value_os_t = default_pidfile())]
+    pub(crate) pidfile: PathBuf,
 }
 
 impl ServerArgs {
diff --git a/crates/switchyard-server/src/daemon.rs b/crates/switchyard-server/src/daemon.rs
new file mode 100644
index 000000000..83528e54c
--- /dev/null
+++ b/crates/switchyard-server/src/daemon.rs
@@ -0,0 +1,56 @@
+// SPDX-FileCopyrightText: Copyright (c) 2026 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+// SPDX-License-Identifier: Apache-2.0
+
+//! Detached execution for `switchyard-server`.
+//!
+//! The server is otherwise a foreground process that drains on `SIGTERM`/
+//! `SIGINT`. To run it as a managed background service that outlives the
+//! launching terminal, call [`detach_into_background`] *before* the Tokio
+//! runtime does significant work: it re-executes the current binary under the
+//! system `setsid` in a new session with stdio disconnected and writes a
+//! pidfile, so the original process exits and the child keeps serving. Spawning
+//! before the async runtime boots avoids the hazard of `fork`/`setsid` after an
+//! OS-thread/signal-handler runtime has initialised.
+
+use std::io::Write;
+use std::path::Path;
+use std::process::{Command, Stdio};
+
+/// Re-exec the current binary under `setsid` in a detached background session.
+///
+/// Returns `Ok(())` in the detached child (the caller should then boot the
+/// server); the parent process exits successfully after spawning the child.
+#[cfg(unix)]
+pub(crate) fn detach_into_background(pidfile: &Path) -> std::io::Result<()> {
+    let current = std::env::current_exe()?;
+    // Use the system `setsid` to spawn a detached session (stable, no unstable
+    // std features). stdio is disconnected so the child is independent of the
+    // launching terminal. Drop `--detach` from the re-exec args so the child
+    // serves normally instead of recursing into another detach.
+    let mut child = Command::new("setsid");
+    child.arg(&current);
+    for arg in std::env::args().skip(1) {
+        if arg != "--detach" {
+            child.arg(arg);
+        }
+    }
+    child.stdin(Stdio::null()).stdout(Stdio::null()).stderr(Stdio::null());
+
+    let handle = child.spawn()?;
+    write_pidfile(pidfile, handle.id())?;
+    // Parent exits; the detached child continues and serves in its own session.
+    std::process::exit(0);
+}
+
+/// Write `pid` to `path`, creating parent directories as needed.
+pub(crate) fn write_pidfile(path: &Path, pid: u32) -> std::io::Result<()> {
+    if let Some(parent) = path.parent() {
+        if !parent.as_os_str().is_empty() {
+            std::fs::create_dir_all(parent)?;
+        }
+    }
+    let mut file = std::fs::File::create(path)?;
+    writeln!(file, "{pid}")?;
+    file.flush()?;
+    Ok(())
+}
diff --git a/crates/switchyard-server/src/main.rs b/crates/switchyard-server/src/main.rs
index b9f7fdf0a..c15a4702a 100644
--- a/crates/switchyard-server/src/main.rs
+++ b/crates/switchyard-server/src/main.rs
@@ -6,6 +6,7 @@
 use std::process::ExitCode;
 
 mod cli;
+mod daemon;
 
 #[tokio::main(flavor = "multi_thread")]
 async fn main() -> ExitCode {
@@ -13,7 +14,17 @@ async fn main() -> ExitCode {
         eprintln!("failed to initialize observability: {error}");
         return ExitCode::FAILURE;
     }
-    let exit_code = match cli::run(cli::ServerArgs::parse_args()).await {
+    let args = cli::ServerArgs::parse_args();
+    // Detach must happen before the async runtime does significant work; the
+    // detached child re-parses args without `--detach` and serves normally.
+    if args.detach {
+        if let Err(error) = daemon::detach_into_background(&args.pidfile) {
+            eprintln!("failed to detach switchyard-server: {error}");
+            return ExitCode::FAILURE;
+        }
+        // Unreachable: detach_into_background exits the parent process.
+    }
+    let exit_code = match cli::run(args).await {
         Ok(()) => ExitCode::SUCCESS,
         Err(error) => {
             eprintln!("{error}");