diff --git a/src/gateway/auth-surface-resolution.ts b/src/gateway/auth-surface-resolution.ts
index 3ba60d5cff5..2154ee3be7f 100644
--- a/src/gateway/auth-surface-resolution.ts
+++ b/src/gateway/auth-surface-resolution.ts
@@ -145,6 +145,7 @@ export async function resolveGatewayInteractiveSurfaceAuth(params: {
   config: OpenClawConfig;
   env?: NodeJS.ProcessEnv;
   explicitAuth?: ExplicitGatewayAuth;
+  suppressEnvAuthFallback?: boolean;
   surface: "local" | "remote";
 }): Promise<{
   token?: string;
@@ -155,8 +156,12 @@ export async function resolveGatewayInteractiveSurfaceAuth(params: {
   const diagnostics: string[] = [];
   const explicitToken = trimToUndefined(params.explicitAuth?.token);
   const explicitPassword = trimToUndefined(params.explicitAuth?.password);
-  const envToken = trimToUndefined(env.OPENCLAW_GATEWAY_TOKEN);
-  const envPassword = trimToUndefined(env.OPENCLAW_GATEWAY_PASSWORD);
+  const envToken = params.suppressEnvAuthFallback
+    ? undefined
+    : trimToUndefined(env.OPENCLAW_GATEWAY_TOKEN);
+  const envPassword = params.suppressEnvAuthFallback
+    ? undefined
+    : trimToUndefined(env.OPENCLAW_GATEWAY_PASSWORD);
 
   if (params.surface === "remote") {
     const remoteToken = explicitToken
diff --git a/src/tui/gateway-chat.test.ts b/src/tui/gateway-chat.test.ts
index 494623dd545..e6c12c426b0 100644
--- a/src/tui/gateway-chat.test.ts
+++ b/src/tui/gateway-chat.test.ts
@@ -110,6 +110,7 @@ describe("resolveGatewayConnection", () => {
       "OPENCLAW_GATEWAY_URL",
       "OPENCLAW_GATEWAY_TOKEN",
       "OPENCLAW_GATEWAY_PASSWORD",
+      "OPENCLAW_TUI_SETUP_AUTH_SOURCE",
     ]);
     loadConfig.mockReset();
     resolveGatewayPort.mockReset();
@@ -126,6 +127,7 @@ describe("resolveGatewayConnection", () => {
     delete process.env.OPENCLAW_GATEWAY_URL;
     delete process.env.OPENCLAW_GATEWAY_TOKEN;
     delete process.env.OPENCLAW_GATEWAY_PASSWORD;
+    delete process.env.OPENCLAW_TUI_SETUP_AUTH_SOURCE;
   });
 
   afterEach(() => {
@@ -199,6 +201,74 @@ describe("resolveGatewayConnection", () => {
     expect(result.token).toBeUndefined();
   });
 
+  it("keeps normal TUI local password mode env precedence by default", async () => {
+    loadConfig.mockReturnValue({
+      gateway: {
+        mode: "local",
+        auth: {
+          mode: "password",
+          password: "config-password", // pragma: allowlist secret
+        },
+      },
+    });
+
+    await withEnvAsync({ OPENCLAW_GATEWAY_PASSWORD: "env-password" }, async () => {
+      const result = await resolveGatewayConnection({});
+      expect(result.password).toBe("env-password");
+    });
+  });
+
+  it("uses configured local password for setup-launched TUI despite stale gateway password env", async () => {
+    loadConfig.mockReturnValue({
+      gateway: {
+        mode: "local",
+        auth: {
+          mode: "password",
+          password: "config-password", // pragma: allowlist secret
+        },
+      },
+    });
+
+    await withEnvAsync(
+      {
+        OPENCLAW_GATEWAY_PASSWORD: "stale-env-password", // pragma: allowlist secret
+        OPENCLAW_TUI_SETUP_AUTH_SOURCE: "config",
+      },
+      async () => {
+        const result = await resolveGatewayConnection({});
+        expect(result.password).toBe("config-password");
+      },
+    );
+  });
+
+  it("still resolves env SecretRefs for setup-launched TUI config auth", async () => {
+    loadConfig.mockReturnValue({
+      secrets: {
+        providers: {
+          default: { source: "env" },
+        },
+      },
+      gateway: {
+        mode: "local",
+        auth: {
+          mode: "password",
+          password: { source: "env", provider: "default", id: "OPENCLAW_GATEWAY_PASSWORD" },
+        },
+      },
+    });
+
+    await withEnvAsync(
+      {
+        OPENCLAW_GATEWAY_PASSWORD: "resolved-ref-password", // pragma: allowlist secret
+        OPENCLAW_TUI_SETUP_AUTH_SOURCE: "config",
+      },
+      async () => {
+        const result = await resolveGatewayConnection({});
+        expect(result.password).toBe("resolved-ref-password");
+      },
+    );
+  });
+
   it("fails when both local token and password are configured but gateway.auth.mode is unset", async () => {
     loadConfig.mockReturnValue({
       gateway: {
diff --git a/src/tui/gateway-chat.ts b/src/tui/gateway-chat.ts
index 00cea9f728f..e489a28b92f 100644
--- a/src/tui/gateway-chat.ts
+++ b/src/tui/gateway-chat.ts
@@ -23,6 +23,7 @@ import {
 } from "../gateway/protocol/index.js";
 import { formatErrorMessage } from "../infra/errors.js";
 import { VERSION } from "../version.js";
+import { TUI_SETUP_AUTH_SOURCE_CONFIG, TUI_SETUP_AUTH_SOURCE_ENV } from "./setup-launch-env.js";
 import type { ResponseUsageMode, SessionInfo, SessionScope } from "./tui-types.js";
 
 export type GatewayConnectionOptions = {
@@ -317,6 +318,7 @@ export async function resolveGatewayConnection(
   const env = process.env;
   const gatewayAuthMode = config.gateway?.auth?.mode;
   const isRemoteMode = config.gateway?.mode === "remote";
+  const preferConfiguredAuth = env[TUI_SETUP_AUTH_SOURCE_ENV] === TUI_SETUP_AUTH_SOURCE_CONFIG;
 
   const urlOverride =
     typeof opts.url === "string" && opts.url.trim().length > 0 ? opts.url.trim() : undefined;
@@ -394,6 +396,7 @@ export async function resolveGatewayConnection(
     config,
     env,
     explicitAuth,
+    suppressEnvAuthFallback: preferConfiguredAuth,
     surface: "local",
   });
   if (resolved.failureReason) {
diff --git a/src/tui/setup-launch-env.ts b/src/tui/setup-launch-env.ts
new file mode 100644
index 00000000000..12c1af51019
--- /dev/null
+++ b/src/tui/setup-launch-env.ts
@@ -0,0 +1,2 @@
+export const TUI_SETUP_AUTH_SOURCE_ENV = "OPENCLAW_TUI_SETUP_AUTH_SOURCE";
+export const TUI_SETUP_AUTH_SOURCE_CONFIG = "config";
diff --git a/src/tui/tui-launch.test.ts b/src/tui/tui-launch.test.ts
new file mode 100644
index 00000000000..27058f9b56f
--- /dev/null
+++ b/src/tui/tui-launch.test.ts
@@ -0,0 +1,129 @@
+import type { ChildProcess, SpawnOptions } from "node:child_process";
+import { EventEmitter } from "node:events";
+import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
+
+const spawnMock = vi.hoisted(() => vi.fn());
+const detachMock = vi.hoisted(() => vi.fn());
+
+vi.mock("node:child_process", () => ({
+  spawn: spawnMock,
+}));
+
+vi.mock("../process/child-process-bridge.js", () => ({
+  attachChildProcessBridge: vi.fn(() => ({ detach: detachMock })),
+}));
+
+import { launchTuiCli } from "./tui-launch.js";
+
+const originalArgv = [...process.argv];
+const originalExecArgv = [...process.execArgv];
+
+function createChildProcess(): ChildProcess {
+  return new EventEmitter() as ChildProcess;
+}
+
+describe("launchTuiCli", () => {
+  beforeEach(() => {
+    process.argv = [...originalArgv];
+    process.argv[1] = "/repo/openclaw.mjs";
+    process.execArgv.length = 0;
+    spawnMock.mockReset();
+    detachMock.mockReset();
+    vi.spyOn(process.stdin, "pause").mockImplementation(() => process.stdin);
+    vi.spyOn(process.stdin, "resume").mockImplementation(() => process.stdin);
+    vi.spyOn(process.stdin, "isPaused").mockReturnValue(false);
+  });
+
+  afterEach(() => {
+    process.argv = [...originalArgv];
+    process.execArgv.length = 0;
+    process.execArgv.push(...originalExecArgv);
+    vi.restoreAllMocks();
+  });
+
+  it("filters inherited inspector flags when relaunching TUI", async () => {
+    process.execArgv.push(
+      "--import",
+      "tsx",
+      "--inspect",
+      "127.0.0.1:9231",
+      "--inspect=127.0.0.1:9229",
+      "--inspect-brk",
+      "--inspect-wait=0",
+      "--inspect-port",
+      "9230",
+      "--no-warnings",
+    );
+    const child = createChildProcess();
+    spawnMock.mockImplementation((_cmd: string, _args: string[], _opts: SpawnOptions) => {
+      queueMicrotask(() => child.emit("exit", 0, null));
+      return child;
+    });
+
+    await launchTuiCli({
+      url: "ws://127.0.0.1:18789",
+      token: "test-token",
+      password: "test-password",
+      deliver: false,
+    });
+
+    expect(spawnMock).toHaveBeenCalledWith(
+      process.execPath,
+      [
+        "--import",
+        "tsx",
+        "--no-warnings",
+        "/repo/openclaw.mjs",
+        "tui",
+        "--url",
+        "ws://127.0.0.1:18789",
+        "--token",
+        "test-token",
+        "--password",
+        "test-password",
+      ],
+      expect.objectContaining({ stdio: "inherit" }),
+    );
+  });
+
+  it("launches compiled CLI shapes without repeating the current command", async () => {
+    process.argv[1] = "setup";
+    const child = createChildProcess();
+    spawnMock.mockImplementation((_cmd: string, _args: string[], _opts: SpawnOptions) => {
+      queueMicrotask(() => child.emit("exit", 0, null));
+      return child;
+    });
+
+    await launchTuiCli({ deliver: false });
+
+    expect(spawnMock).toHaveBeenCalledWith(
+      process.execPath,
+      ["tui"],
+      expect.objectContaining({ stdio: "inherit" }),
+    );
+  });
+
+  it("pins the child gateway URL and config auth source through env without adding url argv", async () => {
+    const child = createChildProcess();
+    spawnMock.mockImplementation((_cmd: string, _args: string[], _opts: SpawnOptions) => {
+      queueMicrotask(() => child.emit("exit", 0, null));
+      return child;
+    });
+
+    await launchTuiCli(
+      { deliver: false },
+      { authSource: "config", gatewayUrl: "ws://127.0.0.1:18789" },
+    );
+
+    expect(spawnMock).toHaveBeenCalledWith(
+      process.execPath,
+      ["/repo/openclaw.mjs", "tui"],
+      expect.objectContaining({
+        env: expect.objectContaining({
+          OPENCLAW_GATEWAY_URL: "ws://127.0.0.1:18789",
+          OPENCLAW_TUI_SETUP_AUTH_SOURCE: "config",
+        }),
+      }),
+    );
+  });
+});
diff --git a/src/tui/tui-launch.ts b/src/tui/tui-launch.ts
new file mode 100644
index 00000000000..157e8a2b647
--- /dev/null
+++ b/src/tui/tui-launch.ts
@@ -0,0 +1,126 @@
+import { spawn } from "node:child_process";
+import path from "node:path";
+import { formatErrorMessage } from "../infra/errors.js";
+import { attachChildProcessBridge } from "../process/child-process-bridge.js";
+import { TUI_SETUP_AUTH_SOURCE_CONFIG, TUI_SETUP_AUTH_SOURCE_ENV } from "./setup-launch-env.js";
+import type { TuiOptions } from "./tui.js";
+
+type TuiLaunchOptions = {
+  authSource?: "config";
+  gatewayUrl?: string;
+};
+
+function appendOption(args: string[], flag: string, value: string | number | undefined): void {
+  if (value === undefined) {
+    return;
+  }
+  args.push(flag, String(value));
+}
+
+function filterTuiExecArgv(execArgv: readonly string[]): string[] {
+  const filtered: string[] = [];
+  for (let index = 0; index < execArgv.length; index += 1) {
+    const arg = execArgv[index] ?? "";
+    if (
+      arg === "--inspect" ||
+      arg.startsWith("--inspect=") ||
+      arg === "--inspect-brk" ||
+      arg.startsWith("--inspect-brk=") ||
+      arg === "--inspect-wait" ||
+      arg.startsWith("--inspect-wait=")
+    ) {
+      const next = execArgv[index + 1];
+      if (!arg.includes("=") && typeof next === "string" && !next.startsWith("-")) {
+        index += 1;
+      }
+      continue;
+    }
+    if (arg === "--inspect-port") {
+      const next = execArgv[index + 1];
+      if (typeof next === "string" && !next.startsWith("-")) {
+        index += 1;
+      }
+      continue;
+    }
+    if (arg.startsWith("--inspect-port=")) {
+      continue;
+    }
+    filtered.push(arg);
+  }
+  return filtered;
+}
+
+function buildCurrentCliEntryArgs(): string[] {
+  const entry = process.argv[1]?.trim();
+  if (!entry) {
+    throw new Error("unable to relaunch TUI: current CLI entry path is unavailable");
+  }
+  return path.isAbsolute(entry) ? [entry] : [];
+}
+
+function buildTuiCliArgs(opts: TuiOptions): string[] {
+  const args = [...filterTuiExecArgv(process.execArgv), ...buildCurrentCliEntryArgs(), "tui"];
+  appendOption(args, "--url", opts.url);
+  appendOption(args, "--token", opts.token);
+  appendOption(args, "--password", opts.password);
+  appendOption(args, "--session", opts.session);
+  appendOption(args, "--thinking", opts.thinking);
+  appendOption(args, "--message", opts.message);
+  appendOption(args, "--timeout-ms", opts.timeoutMs);
+  appendOption(args, "--history-limit", opts.historyLimit);
+  if (opts.deliver) {
+    args.push("--deliver");
+  }
+  return args;
+}
+
+export async function launchTuiCli(
+  opts: TuiOptions,
+  launchOptions: TuiLaunchOptions = {},
+): Promise<void> {
+  const args = buildTuiCliArgs(opts);
+  const env =
+    launchOptions.gatewayUrl || launchOptions.authSource
+      ? {
+          ...process.env,
+          ...(launchOptions.gatewayUrl ? { OPENCLAW_GATEWAY_URL: launchOptions.gatewayUrl } : {}),
+          ...(launchOptions.authSource === "config"
+            ? { [TUI_SETUP_AUTH_SOURCE_ENV]: TUI_SETUP_AUTH_SOURCE_CONFIG }
+            : {}),
+        }
+      : process.env;
+  const stdinWasPaused =
+    typeof process.stdin.isPaused === "function" ? process.stdin.isPaused() : false;
+
+  process.stdin.pause();
+
+  await new Promise<void>((resolve, reject) => {
+    const child = spawn(process.execPath, args, {
+      stdio: "inherit",
+      env,
+    });
+    const { detach } = attachChildProcessBridge(child);
+
+    child.once("error", (error) => {
+      detach();
+      reject(new Error(`failed to launch TUI: ${formatErrorMessage(error)}`));
+    });
+
+    child.once("exit", (code, signal) => {
+      detach();
+      if (signal) {
+        reject(new Error(`TUI exited from signal ${signal}`));
+        return;
+      }
+      if ((code ?? 0) !== 0) {
+        reject(new Error(`TUI exited with code ${code ?? 1}`));
+        return;
+      }
+      resolve();
+    });
+  }).finally(() => {
+    if (!stdinWasPaused) {
+      process.stdin.resume();
+    }
+  });
+}
diff --git a/src/wizard/setup.finalize.test.ts b/src/wizard/setup.finalize.test.ts
index dbb0f08db01..1fc11f1f779 100644
--- a/src/wizard/setup.finalize.test.ts
+++ b/src/wizard/setup.finalize.test.ts
@@ -4,7 +4,8 @@ import type { OpenClawConfig } from "../config/config.js";
 import type { PluginWebSearchProviderEntry } from "../plugins/types.js";
 import type { RuntimeEnv } from "../runtime.js";
 
-const runTui = vi.hoisted(() => vi.fn(async () => {}));
+const launchTuiCli = vi.hoisted(() => vi.fn(async () => {}));
+const restoreTerminalState = vi.hoisted(() => vi.fn());
 const probeGatewayReachable = vi.hoisted(() =>
   vi.fn<() => Promise<{ ok: boolean; detail?: string }>>(async () => ({ ok: true })),
 );
@@ -134,11 +135,11 @@ vi.mock("../infra/control-ui-assets.js", () => ({
 }));
 
 vi.mock("../terminal/restore.js", () => ({
-  restoreTerminalState: vi.fn(),
+  restoreTerminalState,
 }));
 
-vi.mock("../tui/tui.js", () => ({
-  runTui,
+vi.mock("../tui/tui-launch.js", () => ({
+  launchTuiCli,
 }));
 
 vi.mock("./setup.secret-input.js", () => ({
@@ -236,7 +237,8 @@ function createAdvancedFinalizeArgs(params: AdvancedFinalizeArgs = {}) {
 
 describe("finalizeSetupWizard", () => {
   beforeEach(() => {
-    runTui.mockClear();
+    launchTuiCli.mockClear();
+    restoreTerminalState.mockClear();
     probeGatewayReachable.mockClear();
     waitForGatewayReachable.mockReset();
     waitForGatewayReachable.mockResolvedValue({ ok: true });
@@ -265,7 +267,7 @@ describe("finalizeSetupWizard", () => {
     listConfiguredWebSearchProviders.mockReturnValue([]);
   });
 
-  it("resolves gateway password SecretRef for probe and TUI", async () => {
+  it("resolves gateway password SecretRef for probe but omits auth from TUI hatch", async () => {
     const previous = process.env.OPENCLAW_GATEWAY_PASSWORD;
     process.env.OPENCLAW_GATEWAY_PASSWORD = "resolved-gateway-password"; // pragma: allowlist secret
     resolveSetupSecretInputString.mockResolvedValueOnce("resolved-gateway-password");
@@ -337,14 +339,62 @@ describe("finalizeSetupWizard", () => {
         password: "resolved-gateway-password", // pragma: allowlist secret
       }),
     );
-    expect(runTui).toHaveBeenCalledWith(
-      expect.objectContaining({
-        url: "ws://127.0.0.1:18789",
-        password: "resolved-gateway-password", // pragma: allowlist secret
-      }),
+    expect(launchTuiCli).toHaveBeenCalledWith(
+      {
+        deliver: false,
+        message: undefined,
+      },
+      {
+        authSource: "config",
+        gatewayUrl: "ws://127.0.0.1:18789",
+      },
     );
   });
 
+  it("restores terminal state after failed TUI hatch", async () => {
+    launchTuiCli.mockRejectedValueOnce(new Error("TUI exited with code 1"));
+    const select = vi.fn(async (params: { message: string }) => {
+      if (params.message === "How do you want to hatch your bot?") {
+        return "tui";
+      }
+      return "later";
+    });
+    const prompter = buildWizardPrompter({ select: select as never });
+
+    await expect(
+      finalizeSetupWizard({
+        flow: "advanced",
+        opts: {
+          acceptRisk: true,
+          authChoice: "skip",
+          installDaemon: false,
+          skipHealth: true,
+          skipUi: false,
+        },
+        baseConfig: {},
+        nextConfig: {},
+        workspaceDir: "/tmp",
+        settings: {
+          port: 18789,
+          bind: "loopback",
+          authMode: "token",
+          gatewayToken: "test-token",
+          tailscaleMode: "off",
+          tailscaleResetOnExit: false,
+        },
+        prompter,
+        runtime: createRuntime(),
+      }),
+    ).rejects.toThrow("TUI exited with code 1");
+
+    expect(restoreTerminalState).toHaveBeenCalledWith("pre-setup tui", {
+      resumeStdinIfPaused: true,
+    });
+    expect(restoreTerminalState).toHaveBeenCalledWith("post-setup tui", {
+      resumeStdinIfPaused: true,
+    });
+  });
+
   it("does not persist resolved SecretRef token in daemon install plan", async () => {
     const prompter = buildWizardPrompter({
       select: vi.fn(async () => "later") as never,
diff --git a/src/wizard/setup.finalize.ts b/src/wizard/setup.finalize.ts
index fc1fdc61509..7f930411b8a 100644
--- a/src/wizard/setup.finalize.ts
+++ b/src/wizard/setup.finalize.ts
@@ -30,7 +30,7 @@ import { ensureControlUiAssetsBuilt } from "../infra/control-ui-assets.js";
 import { formatErrorMessage } from "../infra/errors.js";
 import type { RuntimeEnv } from "../runtime.js";
 import { restoreTerminalState } from "../terminal/restore.js";
-import { runTui } from "../tui/tui.js";
+import { launchTuiCli } from "../tui/tui-launch.js";
 import { resolveUserPath } from "../utils.js";
 import { listConfiguredWebSearchProviders } from "../web-search/runtime.js";
 import type { WizardPrompter } from "./prompts.js";
@@ -423,14 +423,21 @@ export async function finalizeSetupWizard(
 
     if (hatchChoice === "tui") {
       restoreTerminalState("pre-setup tui", { resumeStdinIfPaused: true });
-      await runTui({
-        url: links.wsUrl,
-        token: settings.authMode === "token" ? settings.gatewayToken : undefined,
-        password: settings.authMode === "password" ? resolvedGatewayPassword : "",
-        // Safety: setup TUI should not auto-deliver to lastProvider/lastTo.
-        deliver: false,
-        message: hasBootstrap ? "Wake up, my friend!" : undefined,
-      });
+      try {
+        await launchTuiCli(
+          {
+            // Safety: setup TUI should not auto-deliver to lastProvider/lastTo.
+            deliver: false,
+            message: hasBootstrap ? "Wake up, my friend!" : undefined,
+          },
+          {
+            authSource: "config",
+            gatewayUrl: links.wsUrl,
+          },
+        );
+      } finally {
+        restoreTerminalState("post-setup tui", { resumeStdinIfPaused: true });
+      }
       launchedTui = true;
     } else if (hatchChoice === "web") {
       const browserSupport = await detectBrowserOpenSupport();