diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 61b98e4e..6f2ba408 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -61,13 +61,26 @@ Each complete change ideally includes four elements:
    ```
 2. Create and activate a Conda environment (recommended):
    ```bash
-   conda create -n pdd python=3.12
-   conda activate pdd
+   conda create -n pdd-dev python=3.12
+   conda activate pdd-dev
+   ```
+   To use a different environment name, set the `PDD_CONDA_ENV` environment variable before running make commands:
+   ```bash
+   # Option 1: Export for the session
+   export PDD_CONDA_ENV=my-env
+   make <target>
+
+   # Option 2: Set inline for a single command
+   PDD_CONDA_ENV=my-env make build
+
+   # Option 3: Pass as a make argument
+   make test PDD_CONDA_ENV=my-env
    ```
 3. Install dependencies in editable mode with dev extras:
    ```bash
    pip install -e .[dev]
    ```
+   Note: Many Makefile targets (e.g., `make test`, `make coverage`, `make lint`) automatically install dev dependencies into the conda environment before each run.
 4. Optional: Use Docker for reproducible environments, especially for tricky, environment‑dependent bugs.
 
 ## Running Tests
diff --git a/Makefile b/Makefile
index 7346b213..ff365cd1 100644
--- a/Makefile
+++ b/Makefile
@@ -1,3 +1,21 @@
+# Detect if we're under a worktrees directory
+_PARENT_DIR := $(notdir $(patsubst %/,%,$(dir $(CURDIR))))
+_CURRENT_DIR := $(notdir $(CURDIR))
+
+# Conda environment precedence:
+#   1. PDD_CONDA_ENV from environment (highest priority)
+#   2. Current directory name if under worktrees/
+#   3. "pdd" (default)
+ifndef PDD_CONDA_ENV
+  ifeq ($(_PARENT_DIR),worktrees)
+    PDD_CONDA_ENV := $(_CURRENT_DIR)
+  else
+    PDD_CONDA_ENV := pdd
+  endif
+endif
+
+PDD_PYTHON_VERSION := 3.12
+
 # Directories
 PROD_DIR := pdd
 STAGING_DIR := .
@@ -58,7 +76,26 @@ help:
 	@echo "  make staging                 - Copy files to staging"
 	@echo "  make production              - Copy files from staging to pdd"
 	@echo "  make update-extension        - Update VS Code extension"
- 
+	@echo ""
+	@echo "Environment Setup:"
+	@echo "  make dev-setup               - Run full developer setup (interactive)"
+	@echo "  make create-conda-env        - Create conda env (requires worktrees dir)"
+
+# Create conda environment (only valid if under worktrees directory)
+.PHONY: create-conda-env
+create-conda-env:
+ifeq ($(_PARENT_DIR),worktrees)
+	@echo "Creating conda environment '$(_CURRENT_DIR)' with Python $(PDD_PYTHON_VERSION)"
+	@conda create -n $(_CURRENT_DIR) python=$(PDD_PYTHON_VERSION) -y
+else
+	$(error Cannot create conda environment. Current directory must be immediately under a 'worktrees' directory. Current parent directory: $(_PARENT_DIR))
+endif
+
+# Run the full developer setup script
+.PHONY: dev-setup
+dev-setup:
+	@bash scripts/dev-setup.sh
+
 # Public repo paths (override via env if needed)
 PUBLIC_PDD_REPO_DIR ?= staging/public/pdd
 PUBLIC_PDD_REMOTE ?= https://github.com/promptdriven/pdd.git
@@ -186,31 +223,31 @@ run-examples: $(EXAMPLE_FILES)
 	@echo "Running examples one by one:"
 	@$(foreach example_file,$(EXAMPLE_FILES), \
 		echo "Running $(example_file)"; \
-		conda run -n pdd --no-capture-output PYTHONPATH=$(STAGING_DIR):$(PDD_DIR):$$PYTHONPATH python $(example_file) || exit 1; \
+		conda run -n $(PDD_CONDA_ENV) --no-capture-output PYTHONPATH=$(STAGING_DIR):$(PDD_DIR):$$PYTHONPATH python $(example_file) || exit 1; \
 	)
 	@echo "All examples ran successfully"
 
 # Ensure dev dependencies are installed before running tests
 ensure-dev-deps:
-	@echo "Updating pdd conda environment with dev dependencies"
-	@conda run -n pdd --no-capture-output pip install -e '.[dev]'
+	@echo "Updating $(PDD_CONDA_ENV) conda environment with dev dependencies"
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output pip install -e '.[dev]'
 
 # Run tests
 test: ensure-dev-deps
 	@echo "Running staging tests"
 	@cd $(STAGING_DIR)
-	@conda run -n pdd --no-capture-output PDD_RUN_REAL_LLM_TESTS=1 PDD_RUN_LLM_TESTS=1 PDD_PATH=$(abspath $(PDD_DIR)) PYTHONPATH=$(PDD_DIR):$$PYTHONPATH python -m pytest -vv -n auto $(TESTS_DIR)
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output PDD_RUN_REAL_LLM_TESTS=1 PDD_RUN_LLM_TESTS=1 PDD_PATH=$(abspath $(PDD_DIR)) PYTHONPATH=$(PDD_DIR):$$PYTHONPATH python -m pytest -vv -n auto $(TESTS_DIR)
 
 # Run tests with coverage
 coverage: ensure-dev-deps
 	@echo "Running tests with coverage"
 	@cd $(STAGING_DIR)
-	@conda run -n pdd --no-capture-output PDD_PATH=$(STAGING_DIR) PYTHONPATH=$(PDD_DIR):$$PYTHONPATH python -m pytest --cov=$(PDD_DIR) --cov-report=term-missing --cov-report=html $(TESTS_DIR)
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output PDD_PATH=$(STAGING_DIR) PYTHONPATH=$(PDD_DIR):$$PYTHONPATH python -m pytest --cov=$(PDD_DIR) --cov-report=term-missing --cov-report=html $(TESTS_DIR)
 
 # Run pylint
 lint: ensure-dev-deps
 	@echo "Running pylint"
-	@conda run -n pdd --no-capture-output pylint pdd tests
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output pylint pdd tests
 
 # Fix crashes in code
 crash:
@@ -265,7 +302,7 @@ ifdef MODULE
 	$(eval RESULTS_FILE := $(MODULE)_verify_results.log)
 
 	@echo "Verifying $(PY_FILE) functionality..."
-	-conda run -n pdd --no-capture-output pdd --strength .9 --verbose verify --max-attempts 3 --budget 5.0 --output-code $(PDD_DIR)/$(MODULE)_verified.py --output-program $(CONTEXT_DIR)/$(MODULE)_example_verified.py --output-results $(RESULTS_FILE) $(PY_PROMPT) $(PY_FILE) $(PROGRAM_FILE)
+	-conda run -n $(PDD_CONDA_ENV) --no-capture-output pdd --strength .9 --verbose verify --max-attempts 3 --budget 5.0 --output-code $(PDD_DIR)/$(MODULE)_verified.py --output-program $(CONTEXT_DIR)/$(MODULE)_example_verified.py --output-results $(RESULTS_FILE) $(PY_PROMPT) $(PY_FILE) $(PROGRAM_FILE)
 else
 	@echo "Please specify a MODULE to verify"
 	@echo "Usage: make verify MODULE=<module_name>"
@@ -292,7 +329,7 @@ ifdef CHANGE_FILE
 	$(eval CHANGE_FILE_BASENAME := $(basename $(notdir $(CHANGE_FILE))))
 	$(eval DETECT_OUTPUT_FILE := $(CHANGE_FILE_BASENAME)_detect.csv)
 	@echo "Output will be saved to $(DETECT_OUTPUT_FILE)"
-	@conda run -n pdd --no-capture-output pdd detect --output $(DETECT_OUTPUT_FILE) $(ALL_PROMPT_FILES) $(CHANGE_FILE)
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output pdd detect --output $(DETECT_OUTPUT_FILE) $(ALL_PROMPT_FILES) $(CHANGE_FILE)
 	@echo "Detection complete. Results in $(DETECT_OUTPUT_FILE)"
 else
 	@echo "Please specify a CHANGE_FILE to detect changes against."
@@ -321,7 +358,7 @@ ifdef PROMPT_FILE
 	$(eval ACTUAL_OUTPUT_FILE := $(if $(OUTPUT_FILE),$(OUTPUT_FILE),$(DEFAULT_OUTPUT_FILE)))
 
 	@echo "Output will be saved to $(ACTUAL_OUTPUT_FILE)"
-	@conda run -n pdd --no-capture-output pdd change --output $(ACTUAL_OUTPUT_FILE) $(CHANGE_PROMPT) $(CODE_FILE) $(PROMPT_FILE)
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output pdd change --output $(ACTUAL_OUTPUT_FILE) $(CHANGE_PROMPT) $(CODE_FILE) $(PROMPT_FILE)
 	@echo "Single prompt modification complete. Output at $(ACTUAL_OUTPUT_FILE)"
 else
 	@echo "Error: PROMPT_FILE must be specified for single prompt change mode."
@@ -371,8 +408,8 @@ ifdef CSV_FILE
 	)
 
 	@if [ ! -z "$(OUTPUT_LOCATION)" ]; then echo "Output location specified by user: $(OUTPUT_LOCATION)"; fi
-	@echo "Executing from $(PROMPTS_DIR): conda run -n pdd --no-capture-output pdd --force change --budget 10.0 --csv $(CMD_OUTPUT_ARG) $(REL_CSV_FILE) $(REL_CODE_DIR)"
-	@cd $(PROMPTS_DIR) && conda run -n pdd --no-capture-output pdd --force change --budget 10.0 --csv $(CMD_OUTPUT_ARG) $(REL_CSV_FILE) $(REL_CODE_DIR)
+	@echo "Executing from $(PROMPTS_DIR): conda run -n $(PDD_CONDA_ENV) --no-capture-output pdd --force change --budget 10.0 --csv $(CMD_OUTPUT_ARG) $(REL_CSV_FILE) $(REL_CODE_DIR)"
+	@cd $(PROMPTS_DIR) && conda run -n $(PDD_CONDA_ENV) --no-capture-output pdd --force change --budget 10.0 --csv $(CMD_OUTPUT_ARG) $(REL_CSV_FILE) $(REL_CODE_DIR)
 	@echo "CSV batch prompt modification complete."
 else # This means CSV_FILE was not defined, which contradicts the outer ifeq logic. This branch likely won't be hit if CSV_FILE is the primary condition.
 	@echo "Error: CSV_FILE must be specified for CSV batch change mode." # This case should ideally not be reached due to outer ifeq
@@ -390,7 +427,7 @@ ifdef MODULE
 	prompt="$(PROMPTS_DIR)/$${name}_python.prompt"; \
 	echo "Fixing $$name"; \
 	if [ -f "$(CONTEXT_DIR)/$${name}_example.py" ]; then \
-		conda run -n pdd --no-capture-output python -m pdd.cli --time 1 --strength .9 --temperature 0 --verbose --force fix --loop --auto-submit --max-attempts 5 --output-test output/ --output-code output/ --verification-program $(CONTEXT_DIR)/$${name}_example.py $$prompt $(PDD_DIR)/$${name}.py $(TESTS_DIR)/test_$${name}.py $${name}.log; \
+		conda run -n $(PDD_CONDA_ENV) --no-capture-output python -m pdd.cli --time 1 --strength .9 --temperature 0 --verbose --force fix --loop --auto-submit --max-attempts 5 --output-test output/ --output-code output/ --verification-program $(CONTEXT_DIR)/$${name}_example.py $$prompt $(PDD_DIR)/$${name}.py $(TESTS_DIR)/test_$${name}.py $${name}.log; \
 	else \
 		echo "Warning: No verification program found for $$name"; \
 	fi;
@@ -401,7 +438,7 @@ else
 		name="$${rel_path%_python.prompt}"; \
 		echo "Fixing $$name"; \
 		if [ -f "$(CONTEXT_DIR)/$${name}_example.py" ]; then \
-			conda run -n pdd --no-capture-output python -m pdd.cli --strength .9 --temperature 0 --verbose --force fix --loop --auto-submit --max-attempts 5 --output-test output/ --output-code output/ --verification-program $(CONTEXT_DIR)/$${name}_example.py $$prompt $(PDD_DIR)/$${name}.py $(TESTS_DIR)/test_$${name}.py $${name}.log; \
+			conda run -n $(PDD_CONDA_ENV) --no-capture-output python -m pdd.cli --strength .9 --temperature 0 --verbose --force fix --loop --auto-submit --max-attempts 5 --output-test output/ --output-code output/ --verification-program $(CONTEXT_DIR)/$${name}_example.py $$prompt $(PDD_DIR)/$${name}.py $(TESTS_DIR)/test_$${name}.py $${name}.log; \
 		else \
 			echo "Warning: No verification program found for $$name"; \
 		fi; \
@@ -425,10 +462,10 @@ ifdef MODULE
 	fi
 
 	@echo "Updating $(PY_PROMPT) based on changes in $(PY_FILE)"
-	conda run -n pdd --no-capture-output pdd --verbose update --git $(PY_PROMPT) $(PY_FILE)
+	conda run -n $(PDD_CONDA_ENV) --no-capture-output pdd --verbose update --git $(PY_PROMPT) $(PY_FILE)
 else
 	@echo "Running repository-wide prompt update"
-	conda run -n pdd --no-capture-output pdd --verbose update --directory pdd --extensions py
+	conda run -n $(PDD_CONDA_ENV) --no-capture-output pdd --verbose update --directory pdd --extensions py
 endif
 
 # Generate requirements.txt
@@ -520,12 +557,12 @@ test-all-ci: ensure-dev-deps
 	@mkdir -p test_results
 ifdef PR_NUMBER
 ifdef PR_URL
-	@conda run -n pdd --no-capture-output python scripts/run_all_tests_with_results.py --pr-number $(PR_NUMBER) --pr-url $(PR_URL)
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output python scripts/run_all_tests_with_results.py --pr-number $(PR_NUMBER) --pr-url $(PR_URL)
 else
-	@conda run -n pdd --no-capture-output python scripts/run_all_tests_with_results.py --pr-number $(PR_NUMBER)
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output python scripts/run_all_tests_with_results.py --pr-number $(PR_NUMBER)
 endif
 else
-	@conda run -n pdd --no-capture-output python scripts/run_all_tests_with_results.py
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output python scripts/run_all_tests_with_results.py
 endif
 
 # Run all tests with Infisical (for local development and CI)
@@ -540,12 +577,12 @@ test-all-with-infisical: ensure-dev-deps
 	@mkdir -p test_results
 ifdef PR_NUMBER
 ifdef PR_URL
-	@infisical run -- conda run -n pdd --no-capture-output python scripts/run_all_tests_with_results.py --pr-number $(PR_NUMBER) --pr-url $(PR_URL)
+	@infisical run -- conda run -n $(PDD_CONDA_ENV) --no-capture-output python scripts/run_all_tests_with_results.py --pr-number $(PR_NUMBER) --pr-url $(PR_URL)
 else
-	@infisical run -- conda run -n pdd --no-capture-output python scripts/run_all_tests_with_results.py --pr-number $(PR_NUMBER)
+	@infisical run -- conda run -n $(PDD_CONDA_ENV) --no-capture-output python scripts/run_all_tests_with_results.py --pr-number $(PR_NUMBER)
 endif
 else
-	@infisical run -- conda run -n pdd --no-capture-output python scripts/run_all_tests_with_results.py
+	@infisical run -- conda run -n $(PDD_CONDA_ENV) --no-capture-output python scripts/run_all_tests_with_results.py
 endif
 
 # Test a PR from a public or private repo by triggering GitHub Actions
@@ -583,14 +620,14 @@ install:
 build:
 	@echo "Building pdd"
 	@rm -rf dist
-	@conda run -n pdd --no-capture-output python -m build
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output python -m build
 	@rm dist/*.tar.gz #don't upload source distribution
 
         # Post-process the wheel with preprocessed prompts
 	@echo "Post-processing wheel with preprocessed prompts..."
-	@conda run -n pdd --no-capture-output python scripts/preprocess_wheel.py 'dist/*.whl'
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output python scripts/preprocess_wheel.py 'dist/*.whl'
 
-	@conda run -n pdd --no-capture-output twine upload --repository pypi dist/*.whl
+	@conda run -n $(PDD_CONDA_ENV) --no-capture-output twine upload --repository pypi dist/*.whl
 
 publish:
 	@echo "Building and uploading package"
diff --git a/scripts/dev-setup.sh b/scripts/dev-setup.sh
new file mode 100755
index 00000000..7abda164
--- /dev/null
+++ b/scripts/dev-setup.sh
@@ -0,0 +1,437 @@
+#!/bin/bash
+#
+# PDD Developer Setup Script
+#
+# This script sets up a development environment for contributing to PDD.
+# It handles:
+#   1. Optional worktree creation from main branch
+#   2. Conda environment creation with Python 3.12
+#   3. Symbolic links for prompts/ and data/
+#   4. .env file with PDD_PATH
+#   5. Conda environment variable for PDD_PATH
+#   6. Development dependencies installation
+#
+# Usage:
+#   ./scripts/dev-setup.sh [options]
+#
+# Options:
+#   --worktree <name>    Create a git worktree with this name
+#   --env-name <name>    Name for the conda environment (default: worktree name or "pdd")
+#   --python <version>   Python version (default: 3.12)
+#   --no-worktree        Skip worktree creation prompts
+#   --help               Show this help message
+#
+
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+NC='\033[0m' # No Color
+
+# Default values
+PYTHON_VERSION="3.12"
+WORKTREE_NAME=""
+ENV_NAME=""
+NO_WORKTREE=false
+SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+
+# PROJECT_ROOT is the main git repository root (where worktrees will be created)
+# This works even when run from within a worktree
+PROJECT_ROOT=""
+
+# REPO_ROOT is the working directory for setup (may be a worktree)
+REPO_ROOT=""
+
+# Print functions
+info() {
+    echo -e "${BLUE}[INFO]${NC} $1"
+}
+
+success() {
+    echo -e "${GREEN}[OK]${NC} $1"
+}
+
+warn() {
+    echo -e "${YELLOW}[WARN]${NC} $1"
+}
+
+error() {
+    echo -e "${RED}[ERROR]${NC} $1"
+    exit 1
+}
+
+show_help() {
+    cat << EOF
+PDD Developer Setup Script
+
+Usage: $(basename "$0") [options]
+
+Options:
+  --worktree <name>    Create a git worktree with this name
+  --env-name <name>    Name for the conda environment (default: worktree name or "pdd")
+  --python <version>   Python version (default: 3.12)
+  --no-worktree        Skip worktree creation, set up current directory
+  --help               Show this help message
+
+Examples:
+  # Interactive setup in current directory
+  $(basename "$0")
+
+  # Create worktree and set up
+  $(basename "$0") --worktree fix-issue-123
+
+  # Set up current directory with custom env name
+  $(basename "$0") --no-worktree --env-name my-pdd-dev
+
+EOF
+}
+
+# Parse command line arguments
+while [[ $# -gt 0 ]]; do
+    case $1 in
+        --worktree)
+            WORKTREE_NAME="$2"
+            shift 2
+            ;;
+        --env-name)
+            ENV_NAME="$2"
+            shift 2
+            ;;
+        --python)
+            PYTHON_VERSION="$2"
+            shift 2
+            ;;
+        --no-worktree)
+            NO_WORKTREE=true
+            shift
+            ;;
+        --help)
+            show_help
+            exit 0
+            ;;
+        *)
+            error "Unknown option: $1. Use --help for usage."
+            ;;
+    esac
+done
+
+# Check prerequisites
+check_prerequisites() {
+    info "Checking prerequisites..."
+
+    # Check for git
+    if ! command -v git &> /dev/null; then
+        error "git is not installed. Please install git first."
+    fi
+
+    # Check for conda
+    if ! command -v conda &> /dev/null; then
+        error "conda is not installed. Please install Miniconda or Anaconda first."
+    fi
+
+    # Check we're in a git repo
+    if ! git rev-parse --git-dir &> /dev/null; then
+        error "Not in a git repository. Please run from within the PDD repo."
+    fi
+
+    # Determine PROJECT_ROOT (main repository root, works from worktrees too)
+    # git-common-dir points to the shared .git directory across all worktrees
+    local git_common_dir
+    git_common_dir="$(git rev-parse --git-common-dir)"
+    PROJECT_ROOT="$(cd "$git_common_dir/.." && pwd)"
+    info "Project root: $PROJECT_ROOT"
+
+    # Default REPO_ROOT to current git toplevel (may change if we create a worktree)
+    REPO_ROOT="$(git rev-parse --show-toplevel)"
+
+    success "Prerequisites check passed"
+}
+
+# Prompt for worktree creation
+prompt_worktree() {
+    if [[ "$NO_WORKTREE" == "true" ]]; then
+        return
+    fi
+
+    if [[ -n "$WORKTREE_NAME" ]]; then
+        return
+    fi
+
+    echo ""
+    echo -e "${BLUE}Would you like to create a git worktree?${NC}"
+    echo "Worktrees allow you to work on multiple branches simultaneously."
+    echo ""
+    read -p "Create worktree? [y/N]: " response
+
+    if [[ "$response" =~ ^[Yy]$ ]]; then
+        read -p "Enter worktree name (e.g., fix-issue-123): " WORKTREE_NAME
+        if [[ -z "$WORKTREE_NAME" ]]; then
+            warn "No worktree name provided, skipping worktree creation"
+        fi
+    fi
+}
+
+# Create git worktree
+create_worktree() {
+    if [[ -z "$WORKTREE_NAME" ]]; then
+        return
+    fi
+
+    info "Creating git worktree '$WORKTREE_NAME'..."
+
+    # Worktrees are always created under the main project root
+    WORKTREES_DIR="$PROJECT_ROOT/.pdd/worktrees"
+    WORKTREE_PATH="$WORKTREES_DIR/$WORKTREE_NAME"
+
+    info "Worktrees directory: $WORKTREES_DIR"
+
+    # Check if worktree already exists
+    if [[ -d "$WORKTREE_PATH" ]]; then
+        warn "Worktree already exists at $WORKTREE_PATH"
+        read -p "Use existing worktree? [Y/n]: " response
+        if [[ "$response" =~ ^[Nn]$ ]]; then
+            error "Worktree already exists. Choose a different name."
+        fi
+    else
+        # Create worktrees directory if needed
+        mkdir -p "$WORKTREES_DIR"
+
+        # Fetch latest main (run from project root to ensure we're in the right context)
+        info "Fetching latest from origin..."
+        git -C "$PROJECT_ROOT" fetch origin main
+
+        # Create worktree from main
+        git -C "$PROJECT_ROOT" worktree add -b "$WORKTREE_NAME" "$WORKTREE_PATH" origin/main
+        success "Created worktree at $WORKTREE_PATH"
+    fi
+
+    # Change to worktree directory
+    cd "$WORKTREE_PATH"
+    REPO_ROOT="$WORKTREE_PATH"
+
+    success "Now working in worktree: $WORKTREE_PATH"
+}
+
+# Determine conda environment name
+determine_env_name() {
+    if [[ -n "$ENV_NAME" ]]; then
+        return
+    fi
+
+    # If we created a worktree, use its name
+    if [[ -n "$WORKTREE_NAME" ]]; then
+        ENV_NAME="$WORKTREE_NAME"
+        info "Using worktree name for conda environment: $ENV_NAME"
+        return
+    fi
+
+    # Check if we're under a worktrees directory
+    PARENT_DIR=$(basename "$(dirname "$REPO_ROOT")")
+    CURRENT_DIR=$(basename "$REPO_ROOT")
+
+    if [[ "$PARENT_DIR" == "worktrees" ]]; then
+        ENV_NAME="$CURRENT_DIR"
+        info "Detected worktree directory, using name: $ENV_NAME"
+        return
+    fi
+
+    # Default to "pdd"
+    ENV_NAME="pdd"
+    info "Using default conda environment name: $ENV_NAME"
+}
+
+# Create conda environment
+create_conda_env() {
+    info "Setting up conda environment '$ENV_NAME' with Python $PYTHON_VERSION..."
+
+    # Check if environment already exists
+    if conda env list | grep -q "^$ENV_NAME "; then
+        warn "Conda environment '$ENV_NAME' already exists"
+        read -p "Recreate environment? [y/N]: " response
+        if [[ "$response" =~ ^[Yy]$ ]]; then
+            info "Removing existing environment..."
+            conda env remove -n "$ENV_NAME" -y
+        else
+            info "Using existing environment"
+            return
+        fi
+    fi
+
+    # Create the environment
+    conda create -n "$ENV_NAME" python="$PYTHON_VERSION" -y
+    success "Created conda environment '$ENV_NAME'"
+}
+
+# Create symbolic links
+create_symlinks() {
+    info "Creating symbolic links for prompts/ and data/..."
+
+    cd "$REPO_ROOT"
+
+    # Create prompts symlink in pdd/
+    if [[ -L "pdd/prompts" ]]; then
+        info "Symlink pdd/prompts already exists"
+    elif [[ -e "pdd/prompts" ]]; then
+        warn "pdd/prompts exists but is not a symlink"
+    else
+        if [[ -d "prompts" ]]; then
+            ln -s ../prompts pdd/prompts
+            success "Created symlink: pdd/prompts -> ../prompts"
+        else
+            warn "prompts/ directory not found, skipping symlink"
+        fi
+    fi
+
+    # Create data symlink in pdd/
+    if [[ -L "pdd/data" ]]; then
+        info "Symlink pdd/data already exists"
+    elif [[ -e "pdd/data" ]]; then
+        warn "pdd/data exists but is not a symlink"
+    else
+        if [[ -d "data" ]]; then
+            ln -s ../data pdd/data
+            success "Created symlink: pdd/data -> ../data"
+        else
+            warn "data/ directory not found, skipping symlink"
+        fi
+    fi
+}
+
+# Create .env file
+create_env_file() {
+    info "Setting up .env file..."
+
+    cd "$REPO_ROOT"
+    PDD_PATH="$REPO_ROOT/pdd"
+
+    # Check if .env exists
+    if [[ -f ".env" ]]; then
+        # Check if PDD_PATH is already set
+        if grep -q "^PDD_PATH=" ".env"; then
+            info "PDD_PATH already set in .env"
+        else
+            # Append PDD_PATH
+            echo "" >> .env
+            echo "# PDD source directory path" >> .env
+            echo "PDD_PATH=$PDD_PATH" >> .env
+            success "Added PDD_PATH to existing .env"
+        fi
+    else
+        # Create new .env
+        cat > .env << EOF
+# PDD Environment Configuration
+# This file is auto-generated by dev-setup.sh
+
+# PDD source directory path
+PDD_PATH=$PDD_PATH
+
+# Add your API keys below:
+# OPENAI_API_KEY=sk-your-key-here
+# ANTHROPIC_API_KEY=sk-ant-your-key-here
+# GOOGLE_API_KEY=your-google-api-key
+EOF
+        success "Created .env file with PDD_PATH"
+    fi
+
+    # Add .env to .gitignore if not already there
+    if [[ -f ".gitignore" ]]; then
+        if ! grep -q "^\.env$" ".gitignore"; then
+            echo "" >> .gitignore
+            echo "# Local environment file" >> .gitignore
+            echo ".env" >> .gitignore
+            success "Added .env to .gitignore"
+        else
+            info ".env already in .gitignore"
+        fi
+    else
+        echo ".env" > .gitignore
+        success "Created .gitignore with .env"
+    fi
+}
+
+# Set PDD_PATH in conda environment
+set_conda_env_var() {
+    info "Setting PDD_PATH in conda environment '$ENV_NAME'..."
+
+    PDD_PATH="$REPO_ROOT/pdd"
+
+    # Use conda to set the environment variable
+    conda env config vars set PDD_PATH="$PDD_PATH" -n "$ENV_NAME"
+
+    success "Set PDD_PATH=$PDD_PATH in conda environment"
+    info "Note: You'll need to reactivate the environment for this to take effect"
+}
+
+# Install development dependencies
+install_dev_deps() {
+    info "Installing development dependencies..."
+
+    cd "$REPO_ROOT"
+
+    # Run pip install in the conda environment
+    conda run -n "$ENV_NAME" --no-capture-output pip install -e '.[dev]'
+
+    success "Installed development dependencies"
+}
+
+# Print summary
+print_summary() {
+    echo ""
+    echo -e "${GREEN}========================================${NC}"
+    echo -e "${GREEN}  PDD Developer Setup Complete!${NC}"
+    echo -e "${GREEN}========================================${NC}"
+    echo ""
+    echo "Environment Details:"
+    echo "  Conda environment: $ENV_NAME"
+    echo "  Python version:    $PYTHON_VERSION"
+    echo "  Main project root: $PROJECT_ROOT"
+    echo "  Working directory: $REPO_ROOT"
+    echo "  PDD_PATH:          $REPO_ROOT/pdd"
+    echo ""
+    echo "Next Steps:"
+    echo "  1. Activate the environment:"
+    echo -e "     ${YELLOW}conda activate $ENV_NAME${NC}"
+    echo ""
+    echo "  2. Verify setup:"
+    echo -e "     ${YELLOW}echo \$PDD_PATH${NC}"
+    echo -e "     ${YELLOW}pdd --version${NC}"
+    echo ""
+    echo "  3. Run tests:"
+    echo -e "     ${YELLOW}make test${NC}"
+    echo ""
+    if [[ -n "$WORKTREE_NAME" ]]; then
+        echo "  4. Your worktree is at:"
+        echo -e "     ${YELLOW}$REPO_ROOT${NC}"
+        echo ""
+        echo "  Worktrees are stored under:"
+        echo -e "     ${YELLOW}$PROJECT_ROOT/.pdd/worktrees/${NC}"
+        echo ""
+    fi
+    echo "For more information, see docs/ONBOARDING.md"
+    echo ""
+}
+
+# Main execution
+main() {
+    echo ""
+    echo -e "${BLUE}========================================${NC}"
+    echo -e "${BLUE}  PDD Developer Setup Script${NC}"
+    echo -e "${BLUE}========================================${NC}"
+    echo ""
+
+    check_prerequisites
+    prompt_worktree
+    create_worktree
+    determine_env_name
+    create_conda_env
+    create_symlinks
+    create_env_file
+    set_conda_env_var
+    install_dev_deps
+    print_summary
+}
+
+main "$@"