diff --git a/PROGRESS.md b/PROGRESS.md
new file mode 100644
index 000000000..f3ba03646
--- /dev/null
+++ b/PROGRESS.md
@@ -0,0 +1,90 @@
+# tfcode Progress Summary
+
+## Goal
+
+Build and deploy **tfcode** - ToothFairyAI's official AI coding agent, a fork of opencode.
+
+## Completed Tasks
+
+1. ✅ Implemented ToothFairyAI branding (logo, colors, strings)
+2. ✅ Created ToothFairyAI provider with dynamic model fetching
+3. ✅ Synced tools/agents/skills from ToothFairyAI workspace
+4. ✅ Filtered models to only `deploymentType: "serverless"`
+5. ✅ Implemented the `/predictions` endpoint for ToothFairyAI provider
+6. ✅ Added `tfcode setup` command to persist credentials
+7. ✅ Fixed npm installation flow (v1.0.4)
+   - Binary now included in main npm package
+   - Postinstall script checks if binary exists before downloading
+   - ESM-compatible module resolution for npm fallback
+   - Wrapper script fixed to look for binary in correct location
+
+## Current Status
+
+**Working**: npm installation flow is now fully functional. Users can install via:
+
+```bash
+npm install @toothfairyai/tfcode
+```
+
+The binary is included in the main package, making installation instant without needing to download from Gitea or copy from optionalDependencies.
+
+## Next Steps
+
+1. Build all platform binaries (12 targets: linux/darwin/windows × arm64/x64 × baseline/musl)
+2. Test on different platforms (currently only darwin-arm64 is tested)
+3. Create Gitea releases for backup download mechanism
+4. Consider making Gitea repo public for transparency
+
+## Technical Details
+
+### npm Package Structure
+
+The published package includes:
+
+- `bin/tfcode` - The actual binary (92MB)
+- `bin/tfcode.js` - Wrapper script that spawns the binary
+- `postinstall.mjs` - Installation script (checks for binary, downloads if missing, installs Python SDK)
+- `package.json` - Package metadata
+- `LICENSE` - MIT license
+
+### Installation Flow
+
+1. npm installs main package + optionalDependencies
+2. npm extracts files to `node_modules/@toothfairyai/tfcode/`
+3. postinstall runs:
+   - Checks if binary already exists (✓ for darwin-arm64)
+   - If not, tries to download from Gitea
+   - If that fails, copies from optionalDependencies
+   - Installs Python SDK for TF integration
+4. User can run `tfcode` command
+
+### Key Fixes in v1.0.4
+
+1. **Postinstall script**: Fixed duplicate variable declaration (`binaryName`)
+2. **Postinstall script**: Added early return if binary already exists
+3. **Postinstall script**: Fixed ESM module resolution (replaced `require.resolve` with `import.meta.resolve`)
+4. **Publish script**: Copy current platform binary to main package
+5. **Wrapper script**: Fixed binary path (removed extra `bin/` directory)
+
+## Testing
+
+```bash
+# Fresh installation test
+rm -rf /tmp/tfcode-test && mkdir /tmp/tfcode-test
+cd /tmp/tfcode-test && npm init -y
+npm install @toothfairyai/tfcode
+node_modules/.bin/tfcode --version  # Should output: 1.0.4
+```
+
+## Version History
+
+- **1.0.4**: Fixed npm installation flow, binary included in main package
+- **1.0.3**: Initial npm publication (broken installation)
+- **1.0.2**: Earlier testing versions
+- **1.0.0**: Initial release
+
+## Credentials (Testing Only)
+
+- workspace_id: `6586b7e6-683e-4ee6-a6cf-24c19729b5ff`
+- api_key: `EWZooLROIS57EVW3BKGu7Pv6LNe4D6m4gkDjukx3`
+- region: `dev`
diff --git a/bun.lock b/bun.lock
index 75999c631..ed76ab86d 100644
--- a/bun.lock
+++ b/bun.lock
@@ -381,7 +381,7 @@
     },
     "packages/tfcode": {
       "name": "tfcode",
-      "version": "1.0.2",
+      "version": "1.0.5",
       "bin": {
         "tfcode": "./bin/tfcode",
       },
diff --git a/packages/tfcode/package.json b/packages/tfcode/package.json
index b19038b2b..4bddf40d9 100644
--- a/packages/tfcode/package.json
+++ b/packages/tfcode/package.json
@@ -1,6 +1,6 @@
 {
   "$schema": "https://json.schemastore.org/package.json",
-  "version": "1.0.2",
+  "version": "1.0.5",
   "name": "tfcode",
   "type": "module",
   "license": "MIT",
diff --git a/packages/tfcode/script/postinstall-tfcode.mjs b/packages/tfcode/script/postinstall-tfcode.mjs
index 8699aaa1c..58b5a0ee5 100644
--- a/packages/tfcode/script/postinstall-tfcode.mjs
+++ b/packages/tfcode/script/postinstall-tfcode.mjs
@@ -4,6 +4,10 @@ import fs from "fs"
 import path from "path"
 import os from "os"
 import { spawnSync } from "child_process"
+import { fileURLToPath } from "url"
+
+const __filename = fileURLToPath(import.meta.url)
+const __dirname = path.dirname(__filename)
 
 const GITEA_HOST = process.env.TFCODE_GITEA_HOST || "gitea.toothfairyai.com"
 const GITEA_REPO = process.env.TFCODE_GITEA_REPO || "ToothFairyAI/tf_code"
@@ -82,7 +86,17 @@ async function downloadBinary() {
   const { platform, arch, needsBaseline, abi } = detectPlatform()
   const version = await getVersion()
 
-  // Build filename
+  // Check if binary already exists (included in npm package)
+  const binaryName = platform === "windows" ? "tfcode.exe" : "tfcode"
+  const binDir = path.join(__dirname, "bin")
+  const existingBinary = path.join(binDir, binaryName)
+
+  if (fs.existsSync(existingBinary)) {
+    console.log(`✓ Binary already exists at ${existingBinary}`)
+    return
+  }
+
+  // Build filename for download
   let target = `tfcode-${platform}-${arch}`
   if (needsBaseline) target += "-baseline"
   if (abi) target += `-${abi}`
@@ -94,7 +108,6 @@ async function downloadBinary() {
   console.log(`Downloading tfcode v${version} for ${target}...`)
 
   // Download
-  const binDir = path.join(__dirname, "bin")
   if (!fs.existsSync(binDir)) fs.mkdirSync(binDir, { recursive: true })
 
   const tmpDir = path.join(os.tmpdir(), `tfcode-install-${process.pid}`)
@@ -110,17 +123,42 @@ async function downloadBinary() {
     // Fallback to npm optionalDependencies
     try {
       const pkgName = `@toothfairyai/${target}`
-      const pkgPath = require.resolve(`${pkgName}/package.json`)
-      const pkgDir = path.dirname(pkgPath)
+
+      // ESM-compatible module resolution
+      let pkgDir
+      try {
+        const pkgUrl = import.meta.resolve(`${pkgName}/package.json`)
+        const pkgPath = fileURLToPath(pkgUrl)
+        pkgDir = path.dirname(pkgPath)
+      } catch (e) {
+        console.error(`Could not resolve ${pkgName}:`, e.message)
+        throw e
+      }
+
       const binaryName = platform === "windows" ? "tfcode.exe" : "tfcode"
       const binaryPath = path.join(pkgDir, "bin", binaryName)
 
+      console.log(`Looking for binary at: ${binaryPath}`)
+
       if (fs.existsSync(binaryPath)) {
+        console.log(`Found binary at npm package location`)
         setupBinary(binaryPath, platform)
         return
+      } else {
+        console.error(`Binary not found at ${binaryPath}`)
       }
-    } catch {}
+    } catch (e) {
+      console.error("npm package fallback failed:", e.message)
+    }
 
+    console.error("")
+    console.error("Installation failed. The binary could not be downloaded or found.")
+    console.error("")
+    console.error("Possible solutions:")
+    console.error("  1. If this is a private installation, set TFCODE_GITEA_HOST to an accessible host")
+    console.error("  2. Manually download the binary and place it in the bin/ directory")
+    console.error("  3. Contact ToothFairyAI support for assistance")
+    console.error("")
     process.exit(1)
   }
 
@@ -133,7 +171,6 @@ async function downloadBinary() {
   }
 
   // Move binary
-  const binaryName = platform === "windows" ? "tfcode.exe" : "tfcode"
   const extractedBinary = path.join(tmpDir, "tfcode")
   const targetBinary = path.join(binDir, binaryName)
 
@@ -174,6 +211,9 @@ async function main() {
   console.log("━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━")
   console.log("")
 
+  // Download and setup binary
+  await downloadBinary()
+
   // Check for Python (needed for TF integration)
   try {
     const result = spawnSync("python3", ["--version"], { encoding: "utf8" })
diff --git a/packages/tfcode/script/publish-tfcode.ts b/packages/tfcode/script/publish-tfcode.ts
index 343e4dcba..5b399862e 100644
--- a/packages/tfcode/script/publish-tfcode.ts
+++ b/packages/tfcode/script/publish-tfcode.ts
@@ -109,15 +109,29 @@ async function createMainPackage() {
   await Bun.file(`./dist/tfcode/postinstall.mjs`).write(await Bun.file("./script/postinstall-tfcode.mjs").text())
   await Bun.file(`./dist/tfcode/LICENSE`).write(await Bun.file("../../LICENSE").text())
 
+  // Copy the current platform's binary to the main package
+  // This makes installation faster (no need to download or copy from optionalDependencies)
+  const currentPlatform = process.platform === "darwin" ? "darwin" : process.platform === "linux" ? "linux" : "windows"
+  const currentArch = process.arch
+  const platformBinDir = `./dist/tfcode-${currentPlatform}-${currentArch}/bin`
+  const binaryName = process.platform === "win32" ? "tfcode.exe" : "tfcode"
+
+  if (fs.existsSync(`${platformBinDir}/${binaryName}`)) {
+    console.log(`Including ${currentPlatform}-${currentArch} binary in main package`)
+    await $`cp ${platformBinDir}/${binaryName} ./dist/tfcode/bin/`
+  } else {
+    console.log(`Warning: No binary found for current platform (${currentPlatform}-${currentArch})`)
+    console.log(`The postinstall script will need to download or copy from optionalDependencies`)
+  }
+
   // Create a simple wrapper script that runs the installed binary
   const wrapper = `#!/usr/bin/env node
 const { spawn } = require('child_process')
 const path = require('path')
 const fs = require('fs')
 
-const binDir = path.join(__dirname, 'bin')
 const binary = process.platform === 'win32' ? 'tfcode.exe' : 'tfcode'
-const binaryPath = path.join(binDir, binary)
+const binaryPath = path.join(__dirname, binary)
 
 if (!fs.existsSync(binaryPath)) {
   console.error('tfcode binary not found. Run: npm install @toothfairyai/tfcode')
diff --git a/packages/tfcode/src/provider/transform.ts b/packages/tfcode/src/provider/transform.ts
index 68918ae3b..914397957 100644
--- a/packages/tfcode/src/provider/transform.ts
+++ b/packages/tfcode/src/provider/transform.ts
@@ -348,6 +348,9 @@ export namespace ProviderTransform {
     )
       return {}
 
+    // ToothFairyAI doesn't support thinking/reasoning parameters yet
+    if (model.api.npm === "@toothfairyai/sdk") return {}
+
     // see: https://docs.x.ai/docs/guides/reasoning#control-how-hard-the-model-thinks
     if (id.includes("grok") && id.includes("grok-3-mini")) {
       if (model.api.npm === "@openrouter/ai-sdk-provider") {