diff --git a/src/cli/commands/init.test.ts b/src/cli/commands/init.test.ts
index fad29ac..1766092 100644
--- a/src/cli/commands/init.test.ts
+++ b/src/cli/commands/init.test.ts
@@ -1,9 +1,9 @@
 import { describe, it, expect, beforeEach, afterEach } from 'vitest';
-import { mkdirSync, rmSync, existsSync, readFileSync, writeFileSync } from 'node:fs';
+import { mkdirSync, rmSync, existsSync, readFileSync, readlinkSync, symlinkSync, writeFileSync } from 'node:fs';
 import { join } from 'node:path';
 import { tmpdir } from 'node:os';
 import { execSync } from 'node:child_process';
-import { runInit } from './init.js';
+import { runInit, installWardenSkill } from './init.js';
 import { Reporter } from '../output/reporter.js';
 import { detectOutputMode } from '../output/tty.js';
 import { Verbosity } from '../output/verbosity.js';
@@ -137,4 +137,100 @@ describe('init command', () => {
       }
     });
   });
+
+  describe('installWardenSkill', () => {
+    it('copies SKILL.md and references into .agents/skills/warden/', () => {
+      const reporter = createMockReporter();
+      installWardenSkill(tempDir, reporter);
+
+      expect(existsSync(join(tempDir, '.agents', 'skills', 'warden', 'SKILL.md'))).toBe(true);
+      expect(existsSync(join(tempDir, '.agents', 'skills', 'warden', 'references'))).toBe(true);
+
+      // Verify references directory has files
+      const refs = join(tempDir, '.agents', 'skills', 'warden', 'references');
+      expect(existsSync(join(refs, 'cli-reference.md'))).toBe(true);
+      expect(existsSync(join(refs, 'config-schema.md'))).toBe(true);
+      expect(existsSync(join(refs, 'configuration.md'))).toBe(true);
+      expect(existsSync(join(refs, 'creating-skills.md'))).toBe(true);
+    });
+
+    it('creates .claude/skills/warden symlink when .claude/ exists', () => {
+      mkdirSync(join(tempDir, '.claude'), { recursive: true });
+
+      const reporter = createMockReporter();
+      installWardenSkill(tempDir, reporter);
+
+      const symlinkPath = join(tempDir, '.claude', 'skills', 'warden');
+      expect(existsSync(symlinkPath)).toBe(true);
+      expect(readlinkSync(symlinkPath)).toBe('../../.agents/skills/warden');
+    });
+
+    it('replaces a broken symlink at .claude/skills/warden', () => {
+      mkdirSync(join(tempDir, '.claude', 'skills'), { recursive: true });
+      // Create a symlink pointing to a non-existent target (broken symlink)
+      symlinkSync('../../nonexistent', join(tempDir, '.claude', 'skills', 'warden'));
+
+      const reporter = createMockReporter();
+      expect(() => installWardenSkill(tempDir, reporter)).not.toThrow();
+
+      const symlinkPath = join(tempDir, '.claude', 'skills', 'warden');
+      expect(readlinkSync(symlinkPath)).toBe('../../.agents/skills/warden');
+    });
+
+    it('replaces an existing directory at .claude/skills/warden with a symlink', () => {
+      mkdirSync(join(tempDir, '.claude', 'skills', 'warden'), { recursive: true });
+      writeFileSync(join(tempDir, '.claude', 'skills', 'warden', 'old-file.txt'), 'stale');
+
+      const reporter = createMockReporter();
+      expect(() => installWardenSkill(tempDir, reporter)).not.toThrow();
+
+      const symlinkPath = join(tempDir, '.claude', 'skills', 'warden');
+      expect(readlinkSync(symlinkPath)).toBe('../../.agents/skills/warden');
+    });
+
+    it('does not create .claude symlink when .claude/ does not exist', () => {
+      const reporter = createMockReporter();
+      installWardenSkill(tempDir, reporter);
+
+      expect(existsSync(join(tempDir, '.claude', 'skills', 'warden'))).toBe(false);
+    });
+  });
+
+  describe('skill install in runInit', () => {
+    it('skips skill when .agents/skills/warden already exists and no --force', async () => {
+      // Pre-create the skill directory with a marker file
+      const skillDir = join(tempDir, '.agents', 'skills', 'warden');
+      mkdirSync(skillDir, { recursive: true });
+      writeFileSync(join(skillDir, 'SKILL.md'), 'existing skill');
+
+      const reporter = createMockReporter();
+      await runInit(createOptions(), reporter);
+
+      // Should not overwrite
+      expect(readFileSync(join(skillDir, 'SKILL.md'), 'utf-8')).toBe('existing skill');
+    });
+
+    it('overwrites skill with --force', async () => {
+      // Pre-create the skill directory
+      const skillDir = join(tempDir, '.agents', 'skills', 'warden');
+      mkdirSync(skillDir, { recursive: true });
+      writeFileSync(join(skillDir, 'SKILL.md'), 'existing skill');
+
+      const reporter = createMockReporter();
+      await runInit(createOptions({ force: true }), reporter);
+
+      // Should overwrite with real content
+      const content = readFileSync(join(skillDir, 'SKILL.md'), 'utf-8');
+      expect(content).not.toBe('existing skill');
+      expect(content.length).toBeGreaterThan(0);
+    });
+
+    it('does not install skill in non-TTY mode without --force', async () => {
+      // non-TTY reporter (default in test) + no --force = skill should not be installed
+      const reporter = createMockReporter();
+      await runInit(createOptions(), reporter);
+
+      expect(existsSync(join(tempDir, '.agents', 'skills', 'warden', 'SKILL.md'))).toBe(false);
+    });
+  });
 });
diff --git a/src/cli/commands/init.ts b/src/cli/commands/init.ts
index f555dd1..f815c12 100644
--- a/src/cli/commands/init.ts
+++ b/src/cli/commands/init.ts
@@ -1,11 +1,98 @@
-import { existsSync, mkdirSync, readFileSync, writeFileSync } from 'node:fs';
-import { join, relative } from 'node:path';
+import {
+  cpSync,
+  existsSync,
+  mkdirSync,
+  readFileSync,
+  rmSync,
+  symlinkSync,
+  unlinkSync,
+  writeFileSync,
+} from 'node:fs';
+import { dirname, join, relative } from 'node:path';
+import { fileURLToPath } from 'node:url';
 import chalk from 'chalk';
+import figures from 'figures';
 import { getRepoRoot, getGitHubRepoUrl } from '../git.js';
+import { readSingleKey } from '../input.js';
+import { ICON_CHECK, ICON_SKIPPED } from '../output/icons.js';
 import type { Reporter } from '../output/reporter.js';
 import type { CLIOptions } from '../args.js';
 import { getMajorVersion } from '../../utils/index.js';
 
+/**
+ * Resolve the built-in warden skill directory from the package.
+ */
+function getPackageSkillDir(): string {
+  const __dirname = dirname(fileURLToPath(import.meta.url));
+  return join(__dirname, '..', '..', '..', 'plugins', 'warden', 'skills', 'warden');
+}
+
+
+/**
+ * Render a section heading in the init output.
+ * Matches the CONFIG/FILES section style from the analysis flow.
+ */
+function renderSection(
+  reporter: Reporter,
+  title: string,
+  filepath: string,
+  description: string,
+): void {
+  if (reporter.mode.isTTY) {
+    reporter.text(chalk.bold(title) + chalk.dim(`  ${filepath}`));
+    reporter.text(`  ${chalk.dim(description)}`);
+  } else {
+    reporter.text(`${title}: ${filepath}`);
+    reporter.text(`  ${description}`);
+  }
+}
+
+function renderCreated(reporter: Reporter): void {
+  if (reporter.mode.isTTY) {
+    reporter.text(`  ${chalk.green(ICON_CHECK)} Created`);
+  } else {
+    reporter.text(`  Created`);
+  }
+}
+
+function renderSkipped(reporter: Reporter, reason: string): void {
+  if (reporter.mode.isTTY) {
+    reporter.text(`  ${chalk.yellow(ICON_SKIPPED)} Skipped ${chalk.dim(`(${reason})`)}`);
+  } else {
+    reporter.text(`  Skipped (${reason})`);
+  }
+}
+
+/**
+ * Install the warden skill into .agents/skills/warden/ and optionally
+ * create a .claude/skills/warden symlink.
+ */
+export function installWardenSkill(repoRoot: string, reporter: Reporter): void {
+  const srcDir = getPackageSkillDir();
+  const destDir = join(repoRoot, '.agents', 'skills', 'warden');
+
+  cpSync(srcDir, destDir, { recursive: true, force: true });
+
+  // Create .claude/skills/warden symlink if .claude/ exists
+  const claudeDir = join(repoRoot, '.claude');
+  if (existsSync(claudeDir)) {
+    const claudeSkillLink = join(claudeDir, 'skills', 'warden');
+    mkdirSync(join(claudeDir, 'skills'), { recursive: true });
+    try {
+      symlinkSync('../../.agents/skills/warden', claudeSkillLink);
+    } catch (err: unknown) {
+      if ((err as NodeJS.ErrnoException).code === 'EEXIST') {
+        // Path occupied by a file, broken symlink, or directory — clear and retry
+        try { unlinkSync(claudeSkillLink); } catch { rmSync(claudeSkillLink, { recursive: true }); }
+        symlinkSync('../../.agents/skills/warden', claudeSkillLink);
+      } else {
+        throw err;
+      }
+    }
+    reporter.text(`  ${chalk.dim(`Linked ${relative(process.cwd(), claudeSkillLink)}`)}`)
+  }
+}
+
 /**
  * Template for warden.toml configuration file.
  */
@@ -116,35 +203,63 @@ export async function runInit(options: CLIOptions, reporter: Reporter): Promise<
 
   let filesCreated = 0;
 
-  // Create warden.toml
+  // --- CONFIG section ---
   const wardenTomlPath = join(repoRoot, 'warden.toml');
+  renderSection(reporter, 'CONFIG', relative(cwd, wardenTomlPath), 'Severity thresholds and skill settings');
   if (existing.hasWardenToml && !options.force) {
-    reporter.skipped(relative(cwd, wardenTomlPath), 'already exists');
+    renderSkipped(reporter, 'already exists');
   } else {
-    const content = generateWardenToml();
-    writeFileSync(wardenTomlPath, content, 'utf-8');
-    reporter.created(relative(cwd, wardenTomlPath));
+    writeFileSync(wardenTomlPath, generateWardenToml(), 'utf-8');
+    renderCreated(reporter);
     filesCreated++;
   }
+  reporter.blank();
 
-  // Create .github/workflows directory if needed
+  // --- WORKFLOW section ---
   const workflowDir = join(repoRoot, '.github', 'workflows');
   if (!existsSync(workflowDir)) {
     mkdirSync(workflowDir, { recursive: true });
   }
-
-  // Create workflow file
   const workflowPath = join(workflowDir, 'warden.yml');
+  renderSection(reporter, 'WORKFLOW', relative(cwd, workflowPath), 'Runs Warden on pull requests via GitHub Actions');
   if (existing.hasWorkflow && !options.force) {
-    reporter.skipped(relative(cwd, workflowPath), 'already exists');
+    renderSkipped(reporter, 'already exists');
   } else {
-    const content = generateWorkflowYaml();
-    writeFileSync(workflowPath, content, 'utf-8');
-    reporter.created(relative(cwd, workflowPath));
+    writeFileSync(workflowPath, generateWorkflowYaml(), 'utf-8');
+    renderCreated(reporter);
     filesCreated++;
   }
+  reporter.blank();
 
-  // Ensure .warden/logs/ is in .gitignore
+  // --- SKILL section ---
+  const skillPath = join(repoRoot, '.agents', 'skills', 'warden');
+  const skillMarker = join(skillPath, 'SKILL.md');
+  renderSection(reporter, 'SKILL', relative(cwd, skillPath), 'Built-in code review skill for AI agents');
+  if (existsSync(skillMarker) && !options.force) {
+    renderSkipped(reporter, 'already exists');
+  } else if (options.force) {
+    installWardenSkill(repoRoot, reporter);
+    renderCreated(reporter);
+    filesCreated++;
+  } else if (reporter.mode.isTTY && process.stdin.isTTY) {
+    process.stderr.write(`  ${chalk.cyan(figures.arrowRight)} Install? ${chalk.dim('[Y/n]')} `);
+    const key = await readSingleKey();
+    process.stderr.write(key === '\r' || key === '\n' ? 'y' : key);
+    process.stderr.write('\n');
+
+    if (key !== 'n') {
+      installWardenSkill(repoRoot, reporter);
+      renderCreated(reporter);
+      filesCreated++;
+    } else {
+      renderSkipped(reporter, 'declined');
+    }
+  } else {
+    renderSkipped(reporter, 'non-interactive');
+  }
+  reporter.blank();
+
+  // Ensure .warden/logs/ is in .gitignore (silent housekeeping)
   const gitignorePath = join(repoRoot, '.gitignore');
   if (existsSync(gitignorePath)) {
     const gitignoreContent = readFileSync(gitignorePath, 'utf-8');
@@ -152,27 +267,22 @@ export async function runInit(options: CLIOptions, reporter: Reporter): Promise<
     if (!hasEntry) {
       const newline = gitignoreContent.endsWith('\n') ? '' : '\n';
       writeFileSync(gitignorePath, gitignoreContent + newline + '.warden/logs/\n', 'utf-8');
-      reporter.created('.gitignore entry for .warden/logs/');
       filesCreated++;
     }
   } else {
     writeFileSync(gitignorePath, '.warden/logs/\n', 'utf-8');
-    reporter.created('.gitignore with .warden/logs/');
     filesCreated++;
   }
 
   if (filesCreated === 0) {
-    reporter.blank();
     reporter.tip('All configuration files already exist. Use --force to overwrite.');
     return 0;
   }
 
   // Print next steps
-  reporter.blank();
   reporter.bold('Next steps:');
-  reporter.text(`  1. Add a skill: ${chalk.cyan('warden add <skill-name>')}`);
-  reporter.text(`  2. Set ${chalk.cyan('WARDEN_ANTHROPIC_API_KEY')} in .env.local`);
-  reporter.text(`  3. Add ${chalk.cyan('WARDEN_ANTHROPIC_API_KEY')} to organization or repository secrets`);
+  reporter.text(`  1. Set ${chalk.cyan('WARDEN_ANTHROPIC_API_KEY')} in .env.local`);
+  reporter.text(`  2. Add ${chalk.cyan('WARDEN_ANTHROPIC_API_KEY')} to organization or repository secrets`);
 
   // Show GitHub secrets URL if available
   const githubUrl = getGitHubRepoUrl(repoRoot);
@@ -180,7 +290,7 @@ export async function runInit(options: CLIOptions, reporter: Reporter): Promise<
     reporter.text(`     ${chalk.dim(githubUrl + '/settings/secrets/actions')}`);
   }
 
-  reporter.text('  4. Commit and open a PR to test');
+  reporter.text('  3. Commit and open a PR to test');
 
   return 0;
 }