diff --git a/packages/cli/tests/helpers/test-daemon.ts b/packages/cli/tests/helpers/test-daemon.ts
index d850c5147..6438274bc 100644
--- a/packages/cli/tests/helpers/test-daemon.ts
+++ b/packages/cli/tests/helpers/test-daemon.ts
@@ -102,7 +102,7 @@ function sleep(ms: number): Promise<void> {
  * Start a test daemon programmatically using the server's bootstrap API
  *
  * This starts the daemon in a separate process using the CLI's daemon start command
- * with isolated PASEO_HOME and PASEO_PORT environment variables.
+ * with isolated PASEO_HOME and PASEO_LISTEN environment variables.
  */
 export async function startTestDaemon(options?: {
   port?: number
@@ -128,7 +128,6 @@ export async function startTestDaemon(options?: {
       ...process.env,
       PASEO_HOME: paseoHome,
       PASEO_LISTEN: `127.0.0.1:${port}`,
-      PASEO_PORT: String(port),
       // Disable relay for tests
       PASEO_RELAY_ENABLED: 'false',
       // Force no TTY to prevent QR code output
diff --git a/packages/cli/tests/setup.ts b/packages/cli/tests/setup.ts
index b0825057e..37263b957 100644
--- a/packages/cli/tests/setup.ts
+++ b/packages/cli/tests/setup.ts
@@ -72,7 +72,7 @@ export async function startDaemon(
   paseoHome: string
 ): Promise<ProcessPromise> {
   $.verbose = false
-  const daemon = $`PASEO_HOME=${paseoHome} PASEO_PORT=${port} paseo daemon start --foreground`.nothrow()
+  const daemon = $`PASEO_HOME=${paseoHome} PASEO_LISTEN=127.0.0.1:${port} paseo daemon start --foreground`.nothrow()
   return daemon
 }
 
diff --git a/packages/server/README.md b/packages/server/README.md
index d75e67cee..c0ca73ce0 100644
--- a/packages/server/README.md
+++ b/packages/server/README.md
@@ -76,15 +76,13 @@ STT_MODEL=whisper-1        # Optional: override to gpt-4o-transcribe, etc.
 STT_CONFIDENCE_THRESHOLD=-3.0  # Optional: reject low-confidence clips
 STT_DEBUG_AUDIO_DIR=.stt-debug # Optional: persist raw dictation audio for debugging
 PASEO_HOME=~/.paseo        # Runtime state directory (agents/, etc.)
-PASEO_PORT=6767            # Voice server + MCP port (falls back to 6767)
-PORT=3000                  # Server port
-NODE_ENV=development       # Environment
+PASEO_LISTEN=127.0.0.1:6767  # Listen address (host:port or /path/to/socket)
 ```
 
-`PASEO_HOME` defaults to `~/.paseo` and isolates runtime artifacts like `agents/`. `PASEO_PORT` takes precedence over `PORT` and controls both the HTTP server and MCP endpoint. For blue/green testing you can run a parallel server without touching production state:
+`PASEO_HOME` defaults to `~/.paseo` and isolates runtime artifacts like `agents/`. `PASEO_LISTEN` controls the daemon listen address. For blue/green testing you can run a parallel server without touching production state:
 
 ```bash
-PASEO_HOME=~/.paseo-blue PASEO_PORT=7777 npm run dev
+PASEO_HOME=~/.paseo-blue PASEO_LISTEN=127.0.0.1:7777 npm run dev
 ```
 
 ## Tech Stack
diff --git a/packages/server/src/server/daemon-e2e/checkout-debug.ts b/packages/server/src/server/daemon-e2e/checkout-debug.ts
index a3afb1529..44a531144 100644
--- a/packages/server/src/server/daemon-e2e/checkout-debug.ts
+++ b/packages/server/src/server/daemon-e2e/checkout-debug.ts
@@ -6,7 +6,7 @@
  *   npx tsx packages/server/src/server/daemon-e2e/checkout-debug.ts [agentIdOrCwd1] [agentIdOrCwd2]
  *
  * To test against a different daemon:
- *   PASEO_PORT=7777 npx tsx packages/server/src/server/daemon-e2e/checkout-debug.ts
+ *   PASEO_LISTEN=127.0.0.1:7777 npx tsx packages/server/src/server/daemon-e2e/checkout-debug.ts
  */
 
 import { WebSocket } from "ws";
@@ -30,8 +30,8 @@ class LoggingWebSocket extends OriginalWebSocket {
 }
 
 const PASEO_HOME = process.env.PASEO_HOME ?? `${os.homedir()}/.paseo`;
-const PASEO_PORT = process.env.PASEO_PORT ?? "6767";
-const DAEMON_URL = `ws://127.0.0.1:${PASEO_PORT}/ws`;
+const PASEO_LISTEN = process.env.PASEO_LISTEN ?? "127.0.0.1:6767";
+const DAEMON_URL = `ws://${PASEO_LISTEN}/ws`;
 
 async function testMultiAgentSequence() {
   console.log("\n=== Testing multi-agent checkout sequence ===");