diff --git a/cmd/gateway/main.go b/cmd/gateway/main.go
index ba826d5..15610ef 100644
--- a/cmd/gateway/main.go
+++ b/cmd/gateway/main.go
@@ -12,6 +12,7 @@ import (
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/auth"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/config"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/notification"
+	"forgejo.riotpiao.com/rock/homelab-frontend/internal/observability"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/proxy"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/server"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/serviceadapter"
@@ -112,6 +113,10 @@ func main() {
 	poimenAdapter := serviceadapter.NewPoimenAdapter(temporalHandler)
 	_ = registry.Add(poimenAdapter)
 
+	// Add memory service adapter (code-registered; config memory entry is skipped).
+	// Includes standing-context resource for CAG support (issue #44).
+	_ = registry.Add(serviceadapter.NewMemoryAdapter())
+
 	// Add other adapters from config (skip if already registered in code)
 	for _, a := range cfg.Adapters {
 		if existing := registry.Get(a.ServiceName); existing != nil {
@@ -135,6 +140,7 @@ func main() {
 	// Create router that handles health endpoints, X-Service (ServiceAdapter) routing,
 	// temporal endpoints, and passes others to upstream handler
 	router := server.NewRouter(healthChecker, dispatcher, temporalHandler, upstreamHandler)
+	router.SetMetricsHandler(observability.NewMetricsHandler(observability.Global()))
 
 	// Wrap router with tracing middleware
 	tracedRouter := tracing.Middleware(router)
diff --git a/internal/config/config.go b/internal/config/config.go
index 89e50ac..2c09268 100644
--- a/internal/config/config.go
+++ b/internal/config/config.go
@@ -33,7 +33,11 @@ type ModelUpstream struct {
 	// Name is the model name clients send (e.g., "reasoning", "ornith:35b").
 	Name string
 	// Address is the upstream server address (host:port).
+	// When Addresses is set, this holds Addresses[0] for backward compatibility.
 	Address string
+	// Addresses holds all backend addresses for multi-backend cache-aware routing.
+	// Populated from the 'addresses' YAML field; backward-compat with single 'address'.
+	Addresses []string
 	// Path is the upstream path for this model (e.g., "/v1/chat/completions").
 	Path string
 	// UpstreamModel is the model name to send to the upstream server.
@@ -116,6 +120,18 @@ func (c *Config) ModelNames() []string {
 	return names
 }
 
+// AllAddresses returns all configured backend addresses for the model.
+// Returns Addresses if non-empty; otherwise wraps Address in a slice.
+func (m *ModelUpstream) AllAddresses() []string {
+	if len(m.Addresses) > 0 {
+		return m.Addresses
+	}
+	if m.Address != "" {
+		return []string{m.Address}
+	}
+	return nil
+}
+
 // Load reads configuration from environment variables with defaults.
 func Load() (*Config, error) {
 	listenAddr := "127.0.0.1:8080"
diff --git a/internal/config/loader.go b/internal/config/loader.go
index e0d9ed3..a21375c 100644
--- a/internal/config/loader.go
+++ b/internal/config/loader.go
@@ -37,9 +37,10 @@ type rawRoute struct {
 
 // rawModel represents a single model entry in the YAML configuration.
 type rawModel struct {
-	Name          string `yaml:"name"`
-	Address       string `yaml:"address"`
-	Path          string `yaml:"path"`
+	Name          string   `yaml:"name"`
+	Address       string   `yaml:"address"`
+	Addresses     []string `yaml:"addresses"`
+	Path          string   `yaml:"path"`
 	UpstreamModel string `yaml:"upstreamModel"`
 	AuthRequired  *bool  `yaml:"authRequired"`
 }
@@ -121,11 +122,18 @@ func LoadRoutesAndModelsFromFile(path string) (map[string]*Route, map[string]*Mo
 		if _, exists := models[rawModel.Name]; exists {
 			return nil, nil, nil, AuthConfig{}, fmt.Errorf("duplicate model: \"%s\"", rawModel.Name)
 		}
-		if rawModel.Address == "" {
-			return nil, nil, nil, AuthConfig{}, fmt.Errorf("model \"%s\": field 'address' is required", rawModel.Name)
+		// Support both 'address' (single) and 'addresses' (multi-backend) YAML fields.
+		addresses := rawModel.Addresses
+		if len(addresses) == 0 && rawModel.Address != "" {
+			addresses = []string{rawModel.Address}
 		}
-		if _, _, err := net.SplitHostPort(rawModel.Address); err != nil {
-			return nil, nil, nil, AuthConfig{}, fmt.Errorf("model \"%s\": invalid address \"%s\": %w", rawModel.Name, rawModel.Address, err)
+		if len(addresses) == 0 {
+			return nil, nil, nil, AuthConfig{}, fmt.Errorf("model \"%s\": 'address' or 'addresses' is required", rawModel.Name)
+		}
+		for _, addr := range addresses {
+			if _, _, err := net.SplitHostPort(addr); err != nil {
+				return nil, nil, nil, AuthConfig{}, fmt.Errorf("model \"%s\": invalid address \"%s\": %w", rawModel.Name, addr, err)
+			}
 		}
 		// Default authRequired to global auth.enabled if not specified per-model
 		authRequired := false
@@ -134,7 +142,8 @@ func LoadRoutesAndModelsFromFile(path string) (map[string]*Route, map[string]*Mo
 		}
 		models[rawModel.Name] = &ModelUpstream{
 			Name:          rawModel.Name,
-			Address:       rawModel.Address,
+			Address:       addresses[0],
+			Addresses:     addresses,
 			Path:          rawModel.Path,
 			UpstreamModel: rawModel.UpstreamModel,
 			AuthRequired:  authRequired,
diff --git a/internal/config/models_test.go b/internal/config/models_test.go
index 8a5da54..a362d74 100644
--- a/internal/config/models_test.go
+++ b/internal/config/models_test.go
@@ -161,7 +161,7 @@ models:
 	if err == nil {
 		t.Errorf("expected error for missing address, got nil")
 	}
-	if err.Error() != "model \"reasoning\": field 'address' is required" {
+	if err.Error() != "model \"reasoning\": 'address' or 'addresses' is required" {
 		t.Errorf("expected missing address error, got: %v", err)
 	}
 }
@@ -283,3 +283,139 @@ models:
 		t.Errorf("expected different ModelUpstream objects even for same address")
 	}
 }
+
+// minimalRouteYAML is a valid routes block required by LoadRoutesAndModelsFromFile.
+const minimalRouteYAML = `
+routes:
+  - name: test-route
+    upstream:
+      address: "localhost:8000"
+      pathRewrite: ""
+      connectTimeout: "10s"
+      readTimeout: "30s"
+      writeTimeout: "30s"
+      maxBodySize: 1048576
+      authRequired: false
+`
+
+// TestLoadModelsAddressesField verifies address / addresses YAML field handling.
+func TestLoadModelsAddressesField(t *testing.T) {
+	tests := []struct {
+		name          string
+		modelsYAML    string
+		wantErr       bool
+		errContains   string
+		wantAddresses []string
+		wantAddress   string
+	}{
+		{
+			name: "single address field",
+			modelsYAML: `
+models:
+  - name: "mymodel"
+    address: "host:8080"
+    path: "/v1/chat"
+`,
+			wantErr:       false,
+			wantAddresses: []string{"host:8080"},
+			wantAddress:   "host:8080",
+		},
+		{
+			name: "multi addresses field",
+			modelsYAML: `
+models:
+  - name: "mymodel"
+    addresses:
+      - "a:80"
+      - "b:80"
+    path: "/v1/chat"
+`,
+			wantErr:       false,
+			wantAddresses: []string{"a:80", "b:80"},
+			wantAddress:   "a:80",
+		},
+		{
+			name: "neither field",
+			modelsYAML: `
+models:
+  - name: "mymodel"
+    path: "/v1/chat"
+`,
+			wantErr:     true,
+			errContains: "mymodel",
+		},
+		{
+			name: "invalid address format",
+			modelsYAML: `
+models:
+  - name: "mymodel"
+    address: "notavalidhostport"
+    path: "/v1/chat"
+`,
+			wantErr:     true,
+			errContains: "mymodel",
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			data := minimalRouteYAML + tc.modelsYAML
+
+			tmpFile, err := os.CreateTemp("", "config-*.yaml")
+			if err != nil {
+				t.Fatalf("CreateTemp: %v", err)
+			}
+			defer os.Remove(tmpFile.Name())
+			tmpFile.WriteString(data)
+			tmpFile.Close()
+
+			_, models, _, _, loadErr := LoadRoutesAndModelsFromFile(tmpFile.Name())
+
+			if tc.wantErr {
+				if loadErr == nil {
+					t.Fatalf("expected error, got nil")
+				}
+				if tc.errContains != "" && !containsStr(loadErr.Error(), tc.errContains) {
+					t.Errorf("error %q does not contain %q", loadErr.Error(), tc.errContains)
+				}
+				return
+			}
+
+			if loadErr != nil {
+				t.Fatalf("unexpected error: %v", loadErr)
+			}
+
+			m, ok := models["mymodel"]
+			if !ok {
+				t.Fatalf("model 'mymodel' not found in result")
+			}
+
+			if m.Address != tc.wantAddress {
+				t.Errorf("Address: want %q, got %q", tc.wantAddress, m.Address)
+			}
+
+			if len(m.Addresses) != len(tc.wantAddresses) {
+				t.Errorf("Addresses len: want %d, got %d (%v)", len(tc.wantAddresses), len(m.Addresses), m.Addresses)
+			} else {
+				for i, a := range tc.wantAddresses {
+					if m.Addresses[i] != a {
+						t.Errorf("Addresses[%d]: want %q, got %q", i, a, m.Addresses[i])
+					}
+				}
+			}
+		})
+	}
+}
+
+// containsStr is a helper to avoid importing strings just for Contains.
+func containsStr(s, sub string) bool {
+	return len(s) >= len(sub) && (s == sub || len(sub) == 0 ||
+		func() bool {
+			for i := 0; i <= len(s)-len(sub); i++ {
+				if s[i:i+len(sub)] == sub {
+					return true
+				}
+			}
+			return false
+		}())
+}
diff --git a/internal/logging/logger.go b/internal/logging/logger.go
index 2043612..04487e5 100644
--- a/internal/logging/logger.go
+++ b/internal/logging/logger.go
@@ -198,3 +198,11 @@ func FromContext(ctx context.Context) *Logger {
 func WithContext(ctx context.Context, l *Logger) context.Context {
 	return context.WithValue(ctx, "logger", l)
 }
+
+// Event emits arbitrary fields as a structured JSON line.
+// Use when field values include non-string types (numerics, floats).
+func Event(fields map[string]interface{}) {
+	ensure()
+	data, _ := json.Marshal(fields)
+	_, _ = global.out.Write(append(data, '\n'))
+}
diff --git a/internal/observability/metrics.go b/internal/observability/metrics.go
index 608d1ad..f78dfa2 100644
--- a/internal/observability/metrics.go
+++ b/internal/observability/metrics.go
@@ -36,6 +36,11 @@ type Metrics struct {
 	itlMs map[string][]int64 // samples for histogram
 	// Token counts
 	tokenCount map[string]int64
+
+	// CAG metrics
+	warmupRequestsDelayed int64
+	prefixCacheHitTokens  int64
+	queueFullRequests     int64
 }
 
 // NewMetrics creates a new Metrics instance.
@@ -280,4 +285,61 @@ func (m *Metrics) Reset() {
 	m.ttftMs = make(map[string][]int64)
 	m.itlMs = make(map[string][]int64)
 	m.tokenCount = make(map[string]int64)
+	m.warmupRequestsDelayed = 0
+	m.prefixCacheHitTokens = 0
+	m.queueFullRequests = 0
+}
+
+// IncrQueueFull increments queue_full_requests_total.
+func (m *Metrics) IncrQueueFull() {
+	m.mu.Lock()
+	defer m.mu.Unlock()
+	m.queueFullRequests++
+}
+
+// GetQueueFull returns queue_full_requests_total.
+func (m *Metrics) GetQueueFull() int64 {
+	m.mu.RLock()
+	defer m.mu.RUnlock()
+	return m.queueFullRequests
+}
+
+// IncrWarmupDelayed increments warmup_requests_delayed_total.
+func (m *Metrics) IncrWarmupDelayed() {
+	m.mu.Lock()
+	defer m.mu.Unlock()
+	m.warmupRequestsDelayed++
+}
+
+// GetWarmupDelayed returns warmup_requests_delayed_total.
+func (m *Metrics) GetWarmupDelayed() int64 {
+	m.mu.RLock()
+	defer m.mu.RUnlock()
+	return m.warmupRequestsDelayed
+}
+
+// IncrPrefixCacheHitTokens increments vllm_prefix_cache_hit_tokens_total by n.
+func (m *Metrics) IncrPrefixCacheHitTokens(n int64) {
+	m.mu.Lock()
+	defer m.mu.Unlock()
+	m.prefixCacheHitTokens += n
+}
+
+// GetPrefixCacheHitTokens returns vllm_prefix_cache_hit_tokens_total.
+func (m *Metrics) GetPrefixCacheHitTokens() int64 {
+	m.mu.RLock()
+	defer m.mu.RUnlock()
+	return m.prefixCacheHitTokens
+}
+
+// globalMetrics is the singleton Metrics instance for gateway-wide telemetry.
+var (
+	globalMetrics     *Metrics
+	globalMetricsOnce sync.Once
+)
+
+// Global returns the singleton Metrics instance, initialising on first call.
+func Global() *Metrics {
+	globalMetricsOnce.Do(func() { globalMetrics = NewMetrics() })
+	return globalMetrics
 }
diff --git a/internal/observability/prometheus.go b/internal/observability/prometheus.go
index 6c2d040..46c7bc5 100644
--- a/internal/observability/prometheus.go
+++ b/internal/observability/prometheus.go
@@ -36,6 +36,18 @@ func (p *PrometheusExporter) Export() string {
 	lines = append(lines, "# TYPE request_duration_seconds histogram")
 	p.exportRequestDuration(&lines)
 
+	lines = append(lines, "# HELP queue_full_requests_total Requests rejected due to backend queue saturation")
+	lines = append(lines, "# TYPE queue_full_requests_total counter")
+	lines = append(lines, fmt.Sprintf("queue_full_requests_total %d", p.metrics.GetQueueFull()))
+
+	lines = append(lines, "# HELP warmup_requests_delayed_total LLM warmup requests delayed for vLLM slot management")
+	lines = append(lines, "# TYPE warmup_requests_delayed_total counter")
+	lines = append(lines, fmt.Sprintf("warmup_requests_delayed_total %d", p.metrics.GetWarmupDelayed()))
+
+	lines = append(lines, "# HELP vllm_prefix_cache_hit_tokens_total vLLM KV prefix cache hit tokens")
+	lines = append(lines, "# TYPE vllm_prefix_cache_hit_tokens_total counter")
+	lines = append(lines, fmt.Sprintf("vllm_prefix_cache_hit_tokens_total %d", p.metrics.GetPrefixCacheHitTokens()))
+
 	return strings.Join(lines, "\n") + "\n"
 }
 
diff --git a/internal/proxy/proxy.go b/internal/proxy/proxy.go
index 66fddc5..c3d9972 100644
--- a/internal/proxy/proxy.go
+++ b/internal/proxy/proxy.go
@@ -2,15 +2,20 @@
 package proxy
 
 import (
+	"context"
 	"encoding/json"
+	"errors"
 	"fmt"
 	"io"
 	"net"
 	"net/http"
 	"net/http/httputil"
 	"net/url"
+	"os"
 	"sort"
+	"strconv"
 	"strings"
+	"sync"
 	"syscall"
 	"time"
 
@@ -18,6 +23,7 @@ import (
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/config"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/identity"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/logging"
+	"forgejo.riotpiao.com/rock/homelab-frontend/internal/observability"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/tracing"
 )
 
@@ -37,13 +43,20 @@ type Handler struct {
 	defaultReadTimeout    time.Duration
 	defaultWriteTimeout   time.Duration
 	defaultMaxBodySize    int64
+	// CAG: per-model backend schedulers for cache-aware routing (#45/#46)
+	schedulers  map[string]*Scheduler
+	// CAG: delay applied to warmup requests before queue entry (#45)
+	warmupDelay time.Duration
+	// transportsMu guards h.transports for goroutine-safe reads/writes.
+	transportsMu sync.RWMutex
 }
 
 // Route represents a reverse proxy route.
 type Route struct {
-	Name     string
-	Upstream *config.Upstream
-	Director func(*http.Request)
+	Name      string
+	ModelName string // non-empty for model-based routes; used for scheduler lookup
+	Upstream  *config.Upstream
+	Director  func(*http.Request)
 	Transport *http.Transport
 }
 
@@ -93,6 +106,47 @@ func New(cfg *config.Config) *Handler {
 		h.authHTTP = newAuthClient()
 	}
 
+	// CAG: warmup delay from env (#45)
+	warmupMs := int64(500)
+	if v := os.Getenv("WARMUP_DELAY_MS"); v != "" {
+		if n, err := strconv.ParseInt(v, 10, 64); err == nil && n >= 0 {
+			warmupMs = n
+		}
+	}
+	h.warmupDelay = time.Duration(warmupMs) * time.Millisecond
+
+	// CAG: per-model backend schedulers (#45/#46)
+	maxSlots := 4
+	if v := os.Getenv("VLLM_MAX_NUM_SEQS"); v != "" {
+		if n, err := strconv.Atoi(v); err == nil && n > 0 {
+			maxSlots = n
+		}
+	}
+	maxQueue := 20
+	if v := os.Getenv("VLLM_MAX_QUEUE_DEPTH"); v != "" {
+		if n, err := strconv.Atoi(v); err == nil && n > 0 {
+			maxQueue = n
+		}
+	}
+	h.schedulers = make(map[string]*Scheduler)
+	for modelName, model := range cfg.Models {
+		addrs := model.AllAddresses()
+		if len(addrs) > 0 {
+			h.schedulers[modelName] = NewScheduler(addrs, maxSlots, maxQueue)
+		}
+	}
+	// Pre-populate transports for all scheduler backends at startup (single-threaded).
+	// getOrCreateTransport is not goroutine-safe; pre-populating avoids concurrent writes.
+	for _, model := range cfg.Models {
+		for _, addr := range model.AllAddresses() {
+			h.getOrCreateTransport(addr, &config.Upstream{
+				ConnectTimeout: h.defaultConnectTimeout,
+				ReadTimeout:    h.defaultReadTimeout,
+				WriteTimeout:   h.defaultWriteTimeout,
+			})
+		}
+	}
+
 	for name, route := range cfg.Routes {
 		// Create a transport per unique upstream address for connection reuse
 		transport := h.getOrCreateTransport(route.Upstream.Address, &route.Upstream)
@@ -116,7 +170,16 @@ func New(cfg *config.Config) *Handler {
 // getOrCreateTransport returns a shared http.Transport for the given upstream address.
 // This ensures connections are pooled and reused across requests to the same upstream.
 func (h *Handler) getOrCreateTransport(addr string, up *config.Upstream) *http.Transport {
+	h.transportsMu.RLock()
 	if t, ok := h.transports[addr]; ok {
+		h.transportsMu.RUnlock()
+		return t
+	}
+	h.transportsMu.RUnlock()
+
+	h.transportsMu.Lock()
+	defer h.transportsMu.Unlock()
+	if t, ok := h.transports[addr]; ok { // double-check after write lock
 		return t
 	}
 
@@ -165,7 +228,7 @@ func (h *Handler) getOrCreateTransport(addr string, up *config.Upstream) *http.T
 	}
 
 	h.transports[addr] = transport
-	return transport
+	return transport // written under transportsMu write lock
 }
 
 // directorFunc modifies the request to be sent to the upstream.
@@ -251,17 +314,7 @@ func writeProblemDetail(w http.ResponseWriter, status int, problemType, title, d
 
 // ServeHTTP implements http.Handler.
 func (h *Handler) ServeHTTP(w http.ResponseWriter, r *http.Request) {
-	// Auth endpoints — no JWT required (they issue tokens)
-	if r.URL.Path == "/auth/token" {
-		h.handleAuthToken(w, r)
-		return
-	}
-	if r.URL.Path == "/auth/refresh" {
-		h.handleAuthRefresh(w, r)
-		return
-	}
-	if r.URL.Path == "/auth/exchange" {
-		h.handleAuthExchange(w, r)
+	if h.handleAuthEndpoint(w, r) {
 		return
 	}
 
@@ -271,58 +324,146 @@ func (h *Handler) ServeHTTP(w http.ResponseWriter, r *http.Request) {
 		return
 	}
 
-	// Try to find a matching route (including body-based dispatch for /v1/chat/completions).
-	// Note: /workflows endpoint is deprecated. Use X-Service: workflow + X-Resource headers instead.
+	// Resolve route; handles validation errors and 404.
+	route, ok := h.routeOrError(w, r)
+	if !ok {
+		return
+	}
+
+	// Strip spoofed identity headers from all inbound requests.
+	// Must happen before any routing — even unauthenticated paths.
+	identity.StripIncoming(r)
+
+	// JWT Authentication for /v1/* endpoints.
+	if !h.authenticateV1(w, r) {
+		return
+	}
+
+	// Enforce request body size cap for non-chat routes.
+	if !h.enforceBodyLimit(w, r, route) {
+		return
+	}
+
+	// CAG: warmup deprioritisation + per-backend semaphore (issues #45/#46).
+	cacheKey := r.Header.Get("X-Poimen-Cache-Key")
+	sched := h.schedulers[route.ModelName]
+	proxy, backend, ok := h.setupCAGProxy(r.Context(), w, r, route, sched, cacheKey)
+	if !ok {
+		return
+	}
+	if backend != nil {
+		defer backend.Release()
+	}
+
+	// For streaming responses (SSE, chunked), disable buffering. Issue #33.
+	w.Header().Set("X-Accel-Buffering", "no")
+
+	proxy.ServeHTTP(w, r)
+}
+
+
+
+// applyWarmup strips the X-Poimen-Warmup header, delays the request while
+// honouring context cancellation, and records the metric.
+// Returns false if the context was cancelled during the delay (caller must abort).
+func (h *Handler) applyWarmup(ctx context.Context, r *http.Request) bool {
+	if r.Header.Get("X-Poimen-Warmup") != "true" {
+		return true
+	}
+	r.Header.Del("X-Poimen-Warmup")
+	r.Header.Set("X-Priority", "low")
+	select {
+	case <-time.After(h.warmupDelay):
+	case <-ctx.Done():
+		return false
+	}
+	observability.Global().IncrWarmupDelayed()
+	return true
+}
+
+// acquireScheduledBackend selects a backend from sched, applies warmup
+// deprioritisation, acquires a concurrency slot, and patches route when the
+// selected backend differs from the config default. It returns the backend
+// to Release (caller must defer), the (possibly patched) route, and ok=true.
+// If the slot cannot be acquired it writes a 503 and returns (nil, nil, false).
+func (h *Handler) acquireScheduledBackend(ctx context.Context, w http.ResponseWriter, r *http.Request, sched *Scheduler, route *Route, cacheKey string) (*Backend, *Route, bool) {
+	backend := sched.Select(cacheKey)
+	if !h.applyWarmup(ctx, r) {
+		return nil, nil, false
+	}
+	if backend == nil {
+		return nil, route, true
+	}
+	if err := backend.Acquire(ctx); err != nil {
+		if errors.Is(err, ErrQueueFull) {
+			observability.Global().IncrQueueFull()
+			logging.Warnf("backend queue full", map[string]string{
+				"backend": backend.Address,
+				"path":    r.URL.Path,
+				"model":   route.ModelName,
+			})
+			w.Header().Set("Retry-After", "5")
+			w.WriteHeader(http.StatusServiceUnavailable)
+			fmt.Fprintf(w, "queue full")
+		} else {
+			logging.Warnf("backend acquire failed", map[string]string{
+				"backend": backend.Address,
+				"path":    r.URL.Path,
+				"model":   route.ModelName,
+				"err":     err.Error(),
+			})
+			w.WriteHeader(http.StatusServiceUnavailable)
+			fmt.Fprintf(w, "upstream busy")
+		}
+		return nil, nil, false
+	}
+	if backend.Address != route.Upstream.Address {
+		patchedCfg := *route.Upstream
+		patchedCfg.Address = backend.Address
+		patchedURL, _ := url.Parse("http://" + backend.Address)
+		route = &Route{
+			Name:      route.Name,
+			ModelName: route.ModelName,
+			Upstream:  &patchedCfg,
+			Transport: h.getOrCreateTransport(backend.Address, &patchedCfg),
+			Director: func(req *http.Request) {
+				directorFunc(req, patchedURL, &patchedCfg)
+			},
+		}
+	}
+	return backend, route, true
+}
+
+// handleAuthEndpoint routes /auth/* requests and returns true if handled.
+func (h *Handler) handleAuthEndpoint(w http.ResponseWriter, r *http.Request) bool {
+	switch r.URL.Path {
+	case "/auth/token":
+		h.handleAuthToken(w, r)
+		return true
+	case "/auth/refresh":
+		h.handleAuthRefresh(w, r)
+		return true
+	case "/auth/exchange":
+		h.handleAuthExchange(w, r)
+		return true
+	}
+	return false
+}
+
+// routeOrError resolves a route for r, writing error responses on failure.
+// Returns (route, true) on success or (nil, false) when a response has been written.
+func (h *Handler) routeOrError(w http.ResponseWriter, r *http.Request) (*Route, bool) {
 	route, err := h.RouteRequest(r)
-
-	// Check if this is a model validation error (from body-based dispatch)
 	if validationErr, ok := err.(*modelValidationError); ok {
-		// This is a client error, not a routing error
-		var status int
-		var problemType string
-		var title string
-		var detail string
-
-		switch validationErr.Kind {
-		case "invalid_json":
-			status = http.StatusBadRequest
-			problemType = "https://api.example.com/problems/invalid-request-body"
-			title = "Invalid Request Body"
-			detail = validationErr.Message
-		case "missing_model", "empty_model", "null_model":
-			status = http.StatusBadRequest
-			problemType = "https://api.example.com/problems/missing-model"
-			title = "Missing Model"
-			detail = "The 'model' field is required and must be a non-empty string"
-		case "unknown_model":
-			status = http.StatusBadRequest
-			problemType = "https://api.example.com/problems/unknown-model"
-			title = "Unknown Model"
-			detail = fmt.Sprintf("Model %q is not available. See valid_models for available options.", validationErr.Model)
-		default:
-			status = http.StatusBadRequest
-			problemType = "https://api.example.com/problems/invalid-request"
-			title = "Invalid Request"
-			detail = validationErr.Message
-		}
-
-		// Get list of valid models (only for model-related errors)
-		var validModels []string
-		if validationErr.Kind == "unknown_model" || validationErr.Kind == "missing_model" || validationErr.Kind == "empty_model" || validationErr.Kind == "null_model" {
-			validModels = h.getValidModels()
-		}
-
-		writeProblemDetail(w, status, problemType, title, detail, validModels)
+		h.writeModelValidationError(w, validationErr, h.getValidModels())
 		logging.Errorf("client error", validationErr, map[string]string{
 			"path":   r.URL.Path,
 			"method": r.Method,
 			"reason": validationErr.Kind,
 		})
-		return
+		return nil, false
 	}
-
 	if err != nil || route == nil {
-		// Route not found or error determining route
 		w.WriteHeader(http.StatusNotFound)
 		fmt.Fprintf(w, "not found")
 		if err != nil {
@@ -333,126 +474,180 @@ func (h *Handler) ServeHTTP(w http.ResponseWriter, r *http.Request) {
 		} else {
 			logging.Errorf("no route matches", fmt.Errorf("path=%s method=%s", r.URL.Path, r.Method), nil)
 		}
-		return
+		return nil, false
+	}
+	return route, true
+}
+
+// writeModelValidationError writes a problem-detail response for model validation errors.
+func (h *Handler) writeModelValidationError(w http.ResponseWriter, validationErr *modelValidationError, validModels []string) {
+	var status int
+	var problemType, title, detail string
+	var models []string
+
+	switch validationErr.Kind {
+	case "invalid_json":
+		status = http.StatusBadRequest
+		problemType = "https://api.example.com/problems/invalid-request-body"
+		title = "Invalid Request Body"
+		detail = validationErr.Message
+	case "missing_model", "empty_model", "null_model":
+		status = http.StatusBadRequest
+		problemType = "https://api.example.com/problems/missing-model"
+		title = "Missing Model"
+		detail = "The 'model' field is required and must be a non-empty string"
+		models = validModels
+	case "unknown_model":
+		status = http.StatusBadRequest
+		problemType = "https://api.example.com/problems/unknown-model"
+		title = "Unknown Model"
+		detail = fmt.Sprintf("Model %q is not available. See valid_models for available options.", validationErr.Model)
+		models = validModels
+	default:
+		status = http.StatusBadRequest
+		problemType = "https://api.example.com/problems/invalid-request"
+		title = "Invalid Request"
+		detail = validationErr.Message
 	}
 
-	// Strip spoofed identity headers from all inbound requests.
-	// Must happen before any routing — even unauthenticated paths.
-	identity.StripIncoming(r)
+	writeProblemDetail(w, status, problemType, title, detail, models)
+}
 
-	// JWT Authentication for /v1/* endpoints
-	if h.jwtValidator != nil && strings.HasPrefix(r.URL.Path, "/v1/") {
-		authHeader := r.Header.Get("Authorization")
-		if authHeader == "" {
-			writeProblemDetail(w, http.StatusUnauthorized,
-				"https://api.example.com/problems/unauthorized",
-				"Unauthorized",
-				"Authorization header required",
-				nil)
-			logging.Errorf("auth failed", fmt.Errorf("missing auth header"), map[string]string{
-				"path": r.URL.Path,
-			})
-			return
-		}
-
-		claims, err := h.jwtValidator.ValidateBearerToken(authHeader)
-		if err != nil {
+// authenticateV1 validates JWT for /v1/* paths.
+// Returns false when auth fails (response already written).
+func (h *Handler) authenticateV1(w http.ResponseWriter, r *http.Request) bool {
+	if h.jwtValidator == nil {
+		logging.Warnf("JWT auth disabled; /v1/* request unauthenticated", map[string]string{"path": r.URL.Path})
+		return true
+	}
+	if !strings.HasPrefix(r.URL.Path, "/v1/") {
+		return true
+	}
+	authHeader := r.Header.Get("Authorization")
+	if authHeader == "" {
+		writeProblemDetail(w, http.StatusUnauthorized,
+			"https://api.example.com/problems/unauthorized",
+			"Unauthorized",
+			"Authorization header required",
+			nil)
+		logging.Errorf("auth failed", fmt.Errorf("missing auth header"), map[string]string{
+			"path": r.URL.Path,
+		})
+		return false
+	}
+	claims, err := h.jwtValidator.ValidateBearerToken(authHeader)
+	if err != nil {
+		writeProblemDetail(w, http.StatusForbidden,
+			"https://api.example.com/problems/forbidden",
+			"Forbidden",
+			"JWT validation failed",
+			nil)
+		logging.Errorf("auth failed", err, map[string]string{
+			"path": r.URL.Path,
+		})
+		return false
+	}
+	identity.Inject(r, claims)
+	if h.config.Auth.RequiredCapability != "" {
+		if !h.jwtValidator.CheckPermissions(claims, h.config.Auth.RequiredCapability, "*") {
 			writeProblemDetail(w, http.StatusForbidden,
-				"https://api.example.com/problems/forbidden",
-				"Forbidden",
-				"JWT validation failed",
+				"https://api.example.com/problems/insufficient-permissions",
+				"Insufficient Permissions",
+				fmt.Sprintf("Required capability: %s", h.config.Auth.RequiredCapability),
 				nil)
-			logging.Errorf("auth failed", err, map[string]string{
-				"path": r.URL.Path,
+			logging.Errorf("auth failed", fmt.Errorf("insufficient permissions"), map[string]string{
+				"path":     r.URL.Path,
+				"required": h.config.Auth.RequiredCapability,
 			})
-			return
+			return false
 		}
+	}
+	return true
+}
 
-		// Inject identity headers for downstream services
-		identity.Inject(r, claims)
+// enforceBodyLimit caps request body size for non-chat routes.
+// Returns false when the request is rejected (response already written).
+func (h *Handler) enforceBodyLimit(w http.ResponseWriter, r *http.Request, route *Route) bool {
+	if r.URL.Path == "/v1/chat/completions" {
+		return true
+	}
+	if route.Upstream.MaxBodySize > 0 && r.ContentLength > route.Upstream.MaxBodySize {
+		w.WriteHeader(http.StatusRequestEntityTooLarge)
+		fmt.Fprintf(w, "request body too large")
+		logging.Errorf("request rejected", fmt.Errorf("body_too_large"), map[string]string{
+			"reason":         "body_too_large",
+			"route":          route.Name,
+			"upstream":       route.Upstream.Address,
+			"content_length": fmt.Sprintf("%d", r.ContentLength),
+			"max_body_size":  fmt.Sprintf("%d", route.Upstream.MaxBodySize),
+		})
+		return false
+	}
+	if route.Upstream.MaxBodySize > 0 && r.Body != nil {
+		r.Body = io.NopCloser(io.LimitReader(r.Body, route.Upstream.MaxBodySize))
+	}
+	return true
+}
 
-		// Check required capability if configured
-		if h.config.Auth.RequiredCapability != "" {
-			if !h.jwtValidator.CheckPermissions(claims, h.config.Auth.RequiredCapability, "*") {
-				writeProblemDetail(w, http.StatusForbidden,
-					"https://api.example.com/problems/insufficient-permissions",
-					"Insufficient Permissions",
-					fmt.Sprintf("Required capability: %s", h.config.Auth.RequiredCapability),
-					nil)
-				logging.Errorf("auth failed", fmt.Errorf("insufficient permissions"), map[string]string{
-					"path":     r.URL.Path,
-					"required": h.config.Auth.RequiredCapability,
-				})
-				return
-			}
+// setupCAGProxy acquires a scheduled backend (if any), builds a reverse proxy,
+// wires ErrorHandler and ModifyResponse, and returns (proxy, backend, true).
+// Returns (nil, nil, false) when the backend slot cannot be acquired (response written).
+func (h *Handler) setupCAGProxy(ctx context.Context, w http.ResponseWriter, r *http.Request, route *Route, sched *Scheduler, cacheKey string) (*httputil.ReverseProxy, *Backend, bool) {
+	var selectedBackend *Backend
+	if sched != nil {
+		var ok bool
+		selectedBackend, route, ok = h.acquireScheduledBackend(ctx, w, r, sched, route, cacheKey)
+		if !ok {
+			return nil, nil, false
 		}
 	}
 
-	// Note: Body size checking already happened in RouteRequest (body was read for model dispatch).
-	// For other paths, we still need to enforce the cap.
-	// For /v1/chat/completions, the body was already read and validated.
-	
-	// Enforce request body size cap for non-chat routes
-	if r.URL.Path != "/v1/chat/completions" {
-		if route.Upstream.MaxBodySize > 0 && r.ContentLength > route.Upstream.MaxBodySize {
-			w.WriteHeader(http.StatusRequestEntityTooLarge)
-			fmt.Fprintf(w, "request body too large")
-			logging.Errorf("request rejected", fmt.Errorf("body_too_large"), map[string]string{
-				"reason":         "body_too_large",
-				"route":          route.Name,
-				"upstream":       route.Upstream.Address,
-				"content_length": fmt.Sprintf("%d", r.ContentLength),
-				"max_body_size":  fmt.Sprintf("%d", route.Upstream.MaxBodySize),
-			})
-			return
-		}
-
-		// Wrap request body with size limiter
-		// This enforces the cap at read time, not after buffering
-		if route.Upstream.MaxBodySize > 0 && r.Body != nil {
-			r.Body = io.NopCloser(io.LimitReader(r.Body, route.Upstream.MaxBodySize))
-		}
-	}
-
-	// Create the reverse proxy
 	proxy := httputil.NewSingleHostReverseProxy(&url.URL{
 		Scheme: "http",
 		Host:   route.Upstream.Address,
 	})
-
-	// Set the director to apply path rewriting
 	proxy.Director = route.Director
-
-	// Use the connection-pooled transport wrapped with tracing
 	proxy.Transport = tracing.NewTransport(route.Transport)
 
-	// Set error handler to log upstream errors
+	capturedBackend := selectedBackend
+	capturedRoute := route
 	proxy.ErrorHandler = func(w http.ResponseWriter, r *http.Request, err error) {
+		if capturedBackend != nil {
+			if s := h.schedulers[capturedRoute.ModelName]; s != nil {
+				s.MarkFailed(capturedBackend.Address)
+			}
+		}
 		w.WriteHeader(http.StatusBadGateway)
 		fmt.Fprintf(w, "upstream error")
 		logging.Errorf("upstream error", err, map[string]string{
-			"upstream": route.Upstream.Address,
+			"upstream": capturedRoute.Upstream.Address,
 			"path":     r.URL.Path,
 		})
 	}
 
-	// Note: We apply connection timeout via Transport dialer, but NOT read timeout as a context deadline.
-	// Read timeout should apply to inactivity (socket read timeout), not total request duration.
-	// A streaming response that's continuously sending should not be cut off.
-	// The Transport's socket read timeout (via Dialer) handles inactivity timeouts.
+	if cacheKey != "" && r.URL.Path == "/v1/chat/completions" {
+		proxy.ModifyResponse = func(resp *http.Response) error {
+			raw := resp.Header.Get("vllm-num-cached-tokens")
+			if raw == "" {
+				return nil
+			}
+			n, err := strconv.ParseInt(raw, 10, 64)
+			if err != nil || n <= 0 {
+				return nil
+			}
+			observability.Global().IncrPrefixCacheHitTokens(n)
+			logging.Event(map[string]interface{}{
+				"event":         "llm_request",
+				"cache_key":     cacheKey,
+				"cached_tokens": n,
+			})
+			return nil
+		}
+	}
 
-	// For streaming responses (SSE, chunked), disable buffering to ensure events
-	// reach clients immediately. Issue #33: X-Accel-Buffering:no tells nginx/Ingress
-	// to stream instead of buffer. ResponseController.Flush() in upstream handler
-	// pairs with this to deliver unbuffered chunks.
-	w.Header().Set("X-Accel-Buffering", "no")
-
-	// Serve the request through the proxy
-	proxy.ServeHTTP(w, r)
+	return proxy, selectedBackend, true
 }
 
-
-
 // getValidModels returns a sorted list of all configured model names.
 func (h *Handler) getValidModels() []string {
 	var models []string
diff --git a/internal/proxy/proxy_test.go b/internal/proxy/proxy_test.go
index d04e307..b092004 100644
--- a/internal/proxy/proxy_test.go
+++ b/internal/proxy/proxy_test.go
@@ -1,15 +1,24 @@
 package proxy
 
 import (
+	"crypto/rand"
+	"crypto/rsa"
+	"encoding/base64"
+	"encoding/json"
 	"fmt"
 	"io"
+	"math/big"
 	"net/http"
 	"net/http/httptest"
+	"runtime"
 	"strings"
 	"testing"
 	"time"
 
+	"github.com/golang-jwt/jwt/v5"
+
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/config"
+	"forgejo.riotpiao.com/rock/homelab-frontend/internal/observability"
 )
 
 func TestProxyBasic(t *testing.T) {
@@ -414,3 +423,356 @@ func TestProxyPreservesBody(t *testing.T) {
 		t.Errorf("expected body %s, got %s", testBody, receivedBody)
 	}
 }
+
+// TestAuthenticateV1ProxyLevel exercises the three branches of authenticateV1:
+// no-token→401, bad-token→403, valid-token→proxied (non-401/403).
+func TestAuthenticateV1ProxyLevel(t *testing.T) {
+	// Generate RSA keypair for signing test JWTs.
+	privateKey, err := rsa.GenerateKey(rand.Reader, 2048)
+	if err != nil {
+		t.Fatalf("rsa.GenerateKey: %v", err)
+	}
+
+	// Build minimal JWKS document from the RSA public key.
+	nBytes := privateKey.PublicKey.N.Bytes()
+	eBig := new(big.Int).SetInt64(int64(privateKey.PublicKey.E))
+	eBytes := eBig.Bytes()
+	jwksDoc, _ := json.Marshal(map[string]interface{}{
+		"keys": []map[string]interface{}{
+			{
+				"kty": "RSA",
+				"use": "sig",
+				"kid": "test-key",
+				"alg": "RS256",
+				"n":   base64.RawURLEncoding.EncodeToString(nBytes),
+				"e":   base64.RawURLEncoding.EncodeToString(eBytes),
+			},
+		},
+	})
+
+	// Serve JWKS from a local httptest server.
+	jwksSrv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		w.Header().Set("Content-Type", "application/json")
+		w.Write(jwksDoc)
+	}))
+	defer jwksSrv.Close()
+
+	// Upstream stub — records whether it was reached.
+	reached := make(chan struct{}, 1)
+	upstreamSrv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		select {
+		case reached <- struct{}{}:
+		default:
+		}
+		w.WriteHeader(http.StatusOK)
+	}))
+	defer upstreamSrv.Close()
+	upstreamAddr := strings.TrimPrefix(upstreamSrv.URL, "http://")
+
+	// signJWT returns a valid RS256 JWT accepted by the Authentik-pattern issuer check.
+	signJWT := func() string {
+		tok := jwt.NewWithClaims(jwt.SigningMethodRS256, jwt.MapClaims{
+			"iss": "https://authentik.riotpiao.com/application/o/test/",
+			"aud": "test-audience",
+			"sub": "test-user",
+			"exp": time.Now().Add(time.Hour).Unix(),
+			"iat": time.Now().Unix(),
+		})
+		tok.Header["kid"] = "test-key"
+		signed, err := tok.SignedString(privateKey)
+		if err != nil {
+			t.Fatalf("sign JWT: %v", err)
+		}
+		return signed
+	}
+
+	// Build proxy with auth enabled.
+	cfg := &config.Config{
+		Routes: make(map[string]*config.Route),
+		Models: map[string]*config.ModelUpstream{
+			"auth-model": {
+				Name:    "auth-model",
+				Address: upstreamAddr,
+			},
+		},
+		Auth: config.AuthConfig{
+			Enabled: true,
+			JWKSURL: jwksSrv.URL,
+		},
+	}
+	h := New(cfg)
+	defer h.Close()
+	srv := httptest.NewServer(h)
+	defer srv.Close()
+
+	mkReq := func(authHeader string) *http.Request {
+		body := strings.NewReader(`{"model":"auth-model","messages":[]}`)
+		req, _ := http.NewRequest("POST", srv.URL+"/v1/chat/completions", body)
+		req.Header.Set("Content-Type", "application/json")
+		if authHeader != "" {
+			req.Header.Set("Authorization", authHeader)
+		}
+		return req
+	}
+
+	// Branch 1: no Authorization header → 401.
+	t.Run("no_token_returns_401", func(t *testing.T) {
+		resp, err := http.DefaultClient.Do(mkReq(""))
+		if err != nil {
+			t.Fatalf("request failed: %v", err)
+		}
+		defer resp.Body.Close()
+		if resp.StatusCode != http.StatusUnauthorized {
+			t.Errorf("expected 401, got %d", resp.StatusCode)
+		}
+	})
+
+	// Branch 2: malformed/invalid JWT → 403.
+	t.Run("bad_token_returns_403", func(t *testing.T) {
+		resp, err := http.DefaultClient.Do(mkReq("Bearer this.is.garbage"))
+		if err != nil {
+			t.Fatalf("request failed: %v", err)
+		}
+		defer resp.Body.Close()
+		if resp.StatusCode != http.StatusForbidden {
+			t.Errorf("expected 403, got %d", resp.StatusCode)
+		}
+	})
+
+	// Branch 3: valid RS256 JWT → proxied to upstream (not 401/403).
+	t.Run("valid_token_proxied", func(t *testing.T) {
+		resp, err := http.DefaultClient.Do(mkReq("Bearer " + signJWT()))
+		if err != nil {
+			t.Fatalf("request failed: %v", err)
+		}
+		defer resp.Body.Close()
+		if resp.StatusCode == http.StatusUnauthorized || resp.StatusCode == http.StatusForbidden {
+			body, _ := io.ReadAll(resp.Body)
+			t.Errorf("expected proxied response, got %d body=%s", resp.StatusCode, body)
+		}
+		select {
+		case <-reached:
+			// upstream was hit — auth passed
+		default:
+			t.Error("upstream was not reached after valid JWT")
+		}
+	})
+}
+
+// TestProxyQueueFull verifies that a 503 is returned and the queue_full metric
+// is incremented when the backend queue is at capacity.
+//
+// Setup: maxSlots=1, maxQueue=1. Request 1 holds the slot. Request 2 fills the
+// queue (blocks waiting for slot). Request 3 gets ErrQueueFull → 503.
+func TestProxyQueueFull(t *testing.T) {
+	t.Setenv("VLLM_MAX_NUM_SEQS", "1")    // 1 concurrent slot
+	t.Setenv("VLLM_MAX_QUEUE_DEPTH", "1") // queue capacity 1
+	t.Setenv("WARMUP_DELAY_MS", "0")
+	observability.Global().Reset()
+
+	// Upstream blocks until released; buffers one signal when it first starts.
+	slotHeld := make(chan struct{}, 1)
+	release := make(chan struct{})
+	upstream := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		select {
+		case slotHeld <- struct{}{}:
+		default:
+		}
+		<-release
+		w.WriteHeader(http.StatusOK)
+	}))
+	defer upstream.Close()
+
+	upstreamAddr := strings.TrimPrefix(upstream.URL, "http://")
+	cfg := &config.Config{
+		Routes: make(map[string]*config.Route),
+		Models: map[string]*config.ModelUpstream{
+			"q-model": {
+				Name:    "q-model",
+				Address: upstreamAddr,
+			},
+		},
+	}
+	h := New(cfg)
+	defer h.Close()
+
+	srv := httptest.NewServer(h)
+	defer srv.Close()
+
+	mkReq := func() *http.Request {
+		body := strings.NewReader(`{"model":"q-model","messages":[]}`)
+		req, _ := http.NewRequest("POST", srv.URL+"/v1/chat/completions", body)
+		req.Header.Set("Content-Type", "application/json")
+		return req
+	}
+
+	// Request 1: acquires the only slot, reaches upstream, blocks there.
+	r1ch := make(chan *http.Response, 1)
+	go func() {
+		resp, _ := http.DefaultClient.Do(mkReq())
+		r1ch <- resp
+	}()
+	<-slotHeld // slot is acquired; upstream is holding request 1
+
+	// Request 2: enters the queue (capacity 1), blocks waiting for slot.
+	r2ch := make(chan *http.Response, 1)
+	go func() {
+		resp, _ := http.DefaultClient.Do(mkReq())
+		r2ch <- resp
+	}()
+	// Spin until request 2 enters the backend queue channel.
+	for len(h.schedulers["q-model"].backends[0].queue) == 0 {
+		runtime.Gosched()
+	}
+
+	// Request 3: queue is full → expect 503 and metric increment.
+	resp3, err := http.DefaultClient.Do(mkReq())
+	if err != nil {
+		t.Fatalf("request 3 failed: %v", err)
+	}
+	defer resp3.Body.Close()
+
+	if resp3.StatusCode != http.StatusServiceUnavailable {
+		t.Errorf("expected 503 queue full, got %d", resp3.StatusCode)
+	}
+	if got := observability.Global().GetQueueFull(); got != 1 {
+		t.Errorf("expected GetQueueFull()=1, got %d", got)
+	}
+
+	// Cleanup: unblock upstream so goroutines can finish.
+	close(release)
+	if r := <-r1ch; r != nil {
+		r.Body.Close()
+	}
+	if r := <-r2ch; r != nil {
+		r.Body.Close()
+	}
+}
+
+// TestProxyCacheHitLogging verifies that when a response contains the
+// vllm-num-cached-tokens header and a cache key was set, the prefix cache
+// hit token count is incremented in observability metrics.
+func TestProxyCacheHitLogging(t *testing.T) {
+	observability.Global().Reset()
+
+	upstream := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		w.Header().Set("vllm-num-cached-tokens", "128")
+		w.WriteHeader(http.StatusOK)
+	}))
+	defer upstream.Close()
+
+	upstreamAddr := strings.TrimPrefix(upstream.URL, "http://")
+	cfg := &config.Config{
+		Routes: make(map[string]*config.Route),
+		Models: map[string]*config.ModelUpstream{
+			"cache-model": {
+				Name:    "cache-model",
+				Address: upstreamAddr,
+			},
+		},
+	}
+	h := New(cfg)
+	defer h.Close()
+
+	srv := httptest.NewServer(h)
+	defer srv.Close()
+
+	body := strings.NewReader(`{"model":"cache-model","messages":[]}`)
+	req, _ := http.NewRequest("POST", srv.URL+"/v1/chat/completions", body)
+	req.Header.Set("Content-Type", "application/json")
+	req.Header.Set("X-Poimen-Cache-Key", "testkey123")
+
+	resp, err := http.DefaultClient.Do(req)
+	if err != nil {
+		t.Fatalf("request failed: %v", err)
+	}
+	resp.Body.Close()
+
+	if got := observability.Global().GetPrefixCacheHitTokens(); got != 128 {
+		t.Errorf("expected PrefixCacheHitTokens=128, got %d", got)
+	}
+}
+
+// TestWarmupHeaderHandling verifies that X-Poimen-Warmup: true is stripped from
+// the upstream request and replaced with X-Priority: low, while a request without
+// X-Poimen-Warmup reaches upstream without either header.
+//
+// The warmup path runs only for model-based routes (cfg.Models + scheduler),
+// so we POST to /v1/chat/completions with a JSON body that names the test model.
+// WARMUP_DELAY_MS=0 eliminates the 500 ms sleep.
+func TestWarmupHeaderHandling(t *testing.T) {
+	t.Setenv("WARMUP_DELAY_MS", "0")
+
+	tests := []struct {
+		name            string
+		sendWarmup      bool
+		wantWarmupGone  bool
+		wantPriorityLow bool
+	}{
+		{
+			name:            "warmup=true",
+			sendWarmup:      true,
+			wantWarmupGone:  true, // X-Poimen-Warmup must NOT reach upstream
+			wantPriorityLow: true, // X-Priority: low must be set
+		},
+		{
+			name:            "warmup=false",
+			sendWarmup:      false,
+			wantWarmupGone:  true,  // no header sent, so absent at upstream
+			wantPriorityLow: false, // X-Priority must NOT be set
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			var gotWarmup, gotPriority string
+			upstream := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+				gotWarmup = r.Header.Get("X-Poimen-Warmup")
+				gotPriority = r.Header.Get("X-Priority")
+				w.WriteHeader(http.StatusOK)
+			}))
+			defer upstream.Close()
+
+			upstreamAddr := strings.TrimPrefix(upstream.URL, "http://")
+			// Warmup code only runs for model-based routes (scheduler path).
+			// Use cfg.Models so New() builds a Scheduler for "warmup-model".
+			cfg := &config.Config{
+				Routes: make(map[string]*config.Route),
+				Models: map[string]*config.ModelUpstream{
+					"warmup-model": {
+						Name:    "warmup-model",
+						Address: upstreamAddr,
+					},
+				},
+			}
+			h := New(cfg)
+			defer h.Close()
+
+			srv := httptest.NewServer(h)
+			defer srv.Close()
+
+			// POST to /v1/chat/completions — triggers model-based dispatch and warmup path.
+			body := strings.NewReader(`{"model":"warmup-model","messages":[]}`)
+			req, _ := http.NewRequest("POST", srv.URL+"/v1/chat/completions", body)
+			req.Header.Set("Content-Type", "application/json")
+			if tc.sendWarmup {
+				req.Header.Set("X-Poimen-Warmup", "true")
+			}
+			resp, err := http.DefaultClient.Do(req)
+			if err != nil {
+				t.Fatalf("request failed: %v", err)
+			}
+			resp.Body.Close()
+
+			if tc.wantWarmupGone && gotWarmup != "" {
+				t.Errorf("X-Poimen-Warmup must be stripped before upstream, got %q", gotWarmup)
+			}
+			if tc.wantPriorityLow && gotPriority != "low" {
+				t.Errorf("X-Priority: low must be set when warmup=true, got %q", gotPriority)
+			}
+			if !tc.wantPriorityLow && gotPriority != "" {
+				t.Errorf("X-Priority must not be set for normal requests, got %q", gotPriority)
+			}
+		})
+	}
+}
diff --git a/internal/proxy/router.go b/internal/proxy/router.go
index da95efa..544ff3a 100644
--- a/internal/proxy/router.go
+++ b/internal/proxy/router.go
@@ -159,6 +159,7 @@ func (h *Handler) routeByModel(r *http.Request, path string) (*Route, error) {
 
 	route := &Route{
 		Name:      "v1-chat-" + modelName,
+		ModelName: modelName,
 		Upstream:  upstreamCfg,
 		Transport: h.getOrCreateTransport(modelUpstream.Address, upstreamCfg),
 		Director: func(req *http.Request) {
diff --git a/internal/proxy/scheduler.go b/internal/proxy/scheduler.go
new file mode 100644
index 0000000..51f495f
--- /dev/null
+++ b/internal/proxy/scheduler.go
@@ -0,0 +1,157 @@
+package proxy
+
+import (
+	"context"
+	"errors"
+	"hash/fnv"
+	"sort"
+	"sync"
+	"sync/atomic"
+	"time"
+)
+
+// ErrQueueFull is returned when the in-memory queue is at capacity.
+var ErrQueueFull = errors.New("backend queue full")
+
+// Backend represents a single vLLM upstream with a bounded in-memory queue.
+// Two channels model the queue:
+//
+//	queue  — waiting requests (bounded by VLLM_MAX_QUEUE_DEPTH)
+//	slots  — concurrent in-service requests (bounded by VLLM_MAX_NUM_SEQS)
+type Backend struct {
+	Address string
+	queue   chan struct{}
+	slots   chan struct{}
+}
+
+// newBackend creates a Backend with given queue depth and concurrency limit.
+func newBackend(addr string, maxSlots, maxQueue int) *Backend {
+	slots := make(chan struct{}, maxSlots)
+	for i := 0; i < maxSlots; i++ {
+		slots <- struct{}{}
+	}
+	return &Backend{
+		Address: addr,
+		queue:   make(chan struct{}, maxQueue),
+		slots:   slots,
+	}
+}
+
+// Acquire enters the in-memory queue then waits for a vLLM concurrency slot.
+// Returns ErrQueueFull immediately if the queue channel is at capacity (no goroutine queued).
+// Returns ctx.Err() if the context is cancelled while waiting for a slot.
+func (b *Backend) Acquire(ctx context.Context) error {
+	// Non-blocking queue entry: reject immediately when queue is full.
+	select {
+	case b.queue <- struct{}{}:
+		// entered queue
+	default:
+		return ErrQueueFull
+	}
+	// Wait for a concurrency slot, then leave the queue.
+	select {
+	case <-b.slots:
+		<-b.queue // leave queue; now in service
+		return nil
+	case <-ctx.Done():
+		<-b.queue // leave queue; cancelled
+		return ctx.Err()
+	}
+}
+
+// Release returns a concurrency slot to the pool after the upstream request completes.
+func (b *Backend) Release() {
+	b.slots <- struct{}{}
+}
+
+// Scheduler routes LLM requests to backends using rendezvous hashing (cache-aware)
+// or round-robin (no cache key). Failed backends are excluded for a configurable window.
+type Scheduler struct {
+	mu          sync.RWMutex
+	backends    []*Backend
+	failedUntil map[string]time.Time
+	failWindow  time.Duration
+	rrIdx       atomic.Uint64
+}
+
+// NewScheduler creates a Scheduler for the given addresses.
+// maxSlots = VLLM_MAX_NUM_SEQS, maxQueue = VLLM_MAX_QUEUE_DEPTH.
+func NewScheduler(addresses []string, maxSlots, maxQueue int) *Scheduler {
+	backends := make([]*Backend, len(addresses))
+	for i, addr := range addresses {
+		backends[i] = newBackend(addr, maxSlots, maxQueue)
+	}
+	return &Scheduler{
+		backends:    backends,
+		failedUntil: make(map[string]time.Time),
+		failWindow:  30 * time.Second,
+	}
+}
+
+// Select returns a backend. Uses rendezvous hashing when cacheKey is non-empty
+// (same key always routes to the same backend, skipping unhealthy ones).
+// Uses round-robin when cacheKey is empty.
+func (s *Scheduler) Select(cacheKey string) *Backend {
+	s.mu.RLock()
+	defer s.mu.RUnlock()
+
+	if len(s.backends) == 0 {
+		return nil
+	}
+	if len(s.backends) == 1 {
+		return s.backends[0]
+	}
+	if cacheKey != "" {
+		return s.selectRendezvous(cacheKey)
+	}
+	return s.selectRoundRobin()
+}
+
+// selectRendezvous picks the healthy backend with the highest FNV32a score
+// for the key (highest random weight / rendezvous hashing).
+// Falls back to next-highest score when primary is excluded by MarkFailed.
+// Must be called with mu held.
+func (s *Scheduler) selectRendezvous(cacheKey string) *Backend {
+	type scored struct {
+		b     *Backend
+		score uint32
+	}
+	now := time.Now()
+	scores := make([]scored, len(s.backends))
+	h := fnv.New32a()
+	for i, b := range s.backends {
+		h.Reset()
+		h.Write([]byte(cacheKey + ":" + b.Address))
+		scores[i] = scored{b: b, score: h.Sum32()}
+	}
+	sort.Slice(scores, func(i, j int) bool {
+		return scores[i].score > scores[j].score
+	})
+	for _, sc := range scores {
+		_, failed := s.failedUntil[sc.b.Address]
+		if !failed {
+			return sc.b
+		}
+		expiry := s.failedUntil[sc.b.Address]
+		if now.After(expiry) {
+			return sc.b
+		}
+	}
+	// All backends unhealthy: return highest-scored (fail-open).
+	return scores[0].b
+}
+
+// selectRoundRobin distributes requests evenly when no cache key is present.
+// Must be called with mu held.
+func (s *Scheduler) selectRoundRobin() *Backend {
+	idx := s.rrIdx.Add(1) - 1
+	return s.backends[idx%uint64(len(s.backends))]
+}
+
+// MarkFailed excludes addr from routing for the fail window (default 30 s).
+// Called by the proxy ErrorHandler on upstream connection failure.
+func (s *Scheduler) MarkFailed(addr string) {
+	s.mu.Lock()
+	defer s.mu.Unlock()
+	s.failedUntil[addr] = time.Now().Add(s.failWindow)
+}
diff --git a/internal/proxy/scheduler_test.go b/internal/proxy/scheduler_test.go
new file mode 100644
index 0000000..e0631b3
--- /dev/null
+++ b/internal/proxy/scheduler_test.go
@@ -0,0 +1,182 @@
+package proxy
+
+import (
+	"context"
+	"errors"
+	"runtime"
+	"sync"
+	"testing"
+	"time"
+)
+
+// TestBackendAcquireBlocksThenUnblocksOnRelease verifies that a second Acquire
+// blocks while a slot is held, then unblocks when Release is called.
+func TestBackendAcquireBlocksThenUnblocksOnRelease(t *testing.T) {
+	b := newBackend("host:1", 1, 1)
+
+	// G1: acquire and hold the only slot.
+	if err := b.Acquire(context.Background()); err != nil {
+		t.Fatalf("G1 Acquire: unexpected error: %v", err)
+	}
+
+	g2Done := make(chan error, 1)
+	go func() {
+		g2Done <- b.Acquire(context.Background())
+	}()
+
+	// Wait until G2 enters the queue channel (proves Acquire is blocking on slots).
+	for len(b.queue) == 0 {
+		runtime.Gosched()
+	}
+
+	select {
+	case err := <-g2Done:
+		t.Fatalf("G2 returned before Release: %v", err)
+	default:
+	}
+
+	// G1 releases; G2 should unblock.
+	b.Release()
+
+	select {
+	case err := <-g2Done:
+		if err != nil {
+			t.Fatalf("G2 Acquire after Release: unexpected error: %v", err)
+		}
+	case <-time.After(time.Second):
+		t.Fatal("G2 did not unblock within 1s after Release")
+	}
+
+	// Cleanup: release G2's slot.
+	b.Release()
+}
+
+// TestBackendAcquireReturnsErrQueueFullWhenQueueFull verifies that Acquire returns
+// ErrQueueFull immediately when no queue capacity exists (maxQueue=0).
+// With a zero-capacity queue channel the non-blocking select always hits default.
+func TestBackendAcquireReturnsErrQueueFullWhenQueueFull(t *testing.T) {
+	b := newBackend("host:1", 1, 0)
+
+	err := b.Acquire(context.Background())
+	if !errors.Is(err, ErrQueueFull) {
+		t.Fatalf("expected ErrQueueFull, got %v", err)
+	}
+}
+
+// TestSchedulerSelectRendezvousHashDeterministic verifies that the same cache key
+// always selects the same backend (rendezvous / highest-random-weight hashing).
+func TestSchedulerSelectRendezvousHashDeterministic(t *testing.T) {
+	addrs := []string{"a:80", "b:80", "c:80"}
+	s := NewScheduler(addrs, 10, 10)
+
+	first := s.Select("same-cache-key")
+	if first == nil {
+		t.Fatal("Select returned nil")
+	}
+	for i := 1; i < 10; i++ {
+		b := s.Select("same-cache-key")
+		if b == nil || b.Address != first.Address {
+			t.Fatalf("call %d: want %s, got %v", i, first.Address, b)
+		}
+	}
+}
+
+// TestSchedulerSelectNoKeyRoundRobin verifies that round-robin distributes
+// requests evenly across all backends when no cache key is given.
+func TestSchedulerSelectNoKeyRoundRobin(t *testing.T) {
+	addrs := []string{"a:80", "b:80", "c:80"}
+	s := NewScheduler(addrs, 10, 10)
+
+	counts := make(map[string]int)
+	for i := 0; i < 9; i++ {
+		b := s.Select("")
+		if b == nil {
+			t.Fatalf("call %d: Select returned nil", i)
+		}
+		counts[b.Address]++
+	}
+
+	for _, addr := range addrs {
+		if counts[addr] != 3 {
+			t.Errorf("addr %s: want 3 selections, got %d (all counts: %v)", addr, counts[addr], counts)
+		}
+	}
+}
+
+// TestBackendAcquireCancelledContext verifies that Acquire returns ctx.Err() when the
+// context is cancelled while the caller is blocked waiting for a concurrency slot,
+// and that the queue depth returns to 0 after cancellation.
+func TestBackendAcquireCancelledContext(t *testing.T) {
+	b := newBackend("host:1", 1, 1)
+
+	// G1: acquire and hold the only slot indefinitely.
+	if err := b.Acquire(context.Background()); err != nil {
+		t.Fatalf("G1 Acquire: unexpected error: %v", err)
+	}
+
+	ctx, cancel := context.WithCancel(context.Background())
+	defer cancel()
+
+	g2Done := make(chan error, 1)
+	go func() {
+		g2Done <- b.Acquire(ctx)
+	}()
+
+	// Wait until G2 enters the queue channel.
+	for len(b.queue) == 0 {
+		runtime.Gosched()
+	}
+
+	// Verify G2 is queued (queue channel has one item).
+	if qd := len(b.queue); qd != 1 {
+		t.Errorf("expected queue depth 1 while G2 blocked, got %d", qd)
+	}
+
+	// Cancel ctx while G2 is waiting for the slot.
+	cancel()
+
+	select {
+	case err := <-g2Done:
+		if err == nil {
+			t.Fatal("G2 Acquire: expected ctx.Err(), got nil")
+		}
+		if !errors.Is(err, context.Canceled) {
+			t.Fatalf("G2 Acquire: expected context.Canceled, got %v", err)
+		}
+	case <-time.After(time.Second):
+		t.Fatal("G2 did not return within 1s after context cancel")
+	}
+
+	// Queue depth must return to 0 after G2 is drained.
+	if qd := len(b.queue); qd != 0 {
+		t.Errorf("expected queue depth 0 after cancellation, got %d", qd)
+	}
+
+	// Cleanup: release G1's slot.
+	b.Release()
+}
+
+// TestSchedulerMarkFailedExcludesBackend verifies that a failed backend is not
+// selected within the fail window (30 s default).
+func TestSchedulerMarkFailedExcludesBackend(t *testing.T) {
+	addrs := []string{"a:80", "b:80"}
+	s := NewScheduler(addrs, 10, 10)
+
+	s.MarkFailed("a:80")
+
+	var mu sync.Mutex
+	seen := make(map[string]int)
+	for i := 0; i < 10; i++ {
+		b := s.Select("any-key")
+		if b == nil {
+			t.Fatalf("call %d: Select returned nil", i)
+		}
+		mu.Lock()
+		seen[b.Address]++
+		mu.Unlock()
+	}
+
+	if seen["a:80"] > 0 {
+		t.Errorf("failed backend a:80 was selected %d times; expected 0 within fail window", seen["a:80"])
+	}
+}
diff --git a/internal/server/router.go b/internal/server/router.go
index c3fcd0f..4601714 100644
--- a/internal/server/router.go
+++ b/internal/server/router.go
@@ -16,6 +16,7 @@ type Router struct {
 	temporalHandler   http.Handler
 	upstreamHandler   http.Handler
 	forgejoWebhook    *webhook.ForgejoHandler
+	metricsHandler    http.Handler
 }
 
 // NewRouter creates a new router with health endpoints.
@@ -33,6 +34,11 @@ func NewRouter(healthChecker *HealthChecker, dispatcher *serviceadapter.Dispatch
 	}
 }
 
+// SetMetricsHandler registers the Prometheus /metrics endpoint handler.
+func (r *Router) SetMetricsHandler(h http.Handler) {
+	r.metricsHandler = h
+}
+
 // ServeHTTP implements http.Handler.
 // Priority order:
 // 1. /healthz and /readyz to health handlers
@@ -48,6 +54,11 @@ func (r *Router) ServeHTTP(w http.ResponseWriter, req *http.Request) {
 	case "/readyz":
 		ReadinessHandler(r.healthChecker)(w, req)
 		return
+	case "/metrics":
+		if r.metricsHandler != nil {
+			r.metricsHandler.ServeHTTP(w, req)
+			return
+		}
 	}
 
 	// X-Service (ServiceAdapter) routing - checked before path-based routing
diff --git a/internal/serviceadapter/memory_adapter.go b/internal/serviceadapter/memory_adapter.go
new file mode 100644
index 0000000..9fdd95e
--- /dev/null
+++ b/internal/serviceadapter/memory_adapter.go
@@ -0,0 +1,67 @@
+package serviceadapter
+
+import "os"
+
+// NewMemoryAdapter creates a code-registered ServiceAdapter for the memory service.
+// Takes precedence over any config-file loaded memory adapter (main.go skips config
+// adapters when a code-registered one with the same name exists).
+// Upstream URL configured via MEMORY_UPSTREAM_URL env var.
+func NewMemoryAdapter() *ServiceAdapter {
+	upstreamURL := os.Getenv("MEMORY_UPSTREAM_URL")
+	if upstreamURL == "" {
+		upstreamURL = "http://poimen-memory.poimen.svc.cluster.local:8080"
+	}
+	return &ServiceAdapter{
+		Namespace:   "poimen",
+		ServiceName: "memory",
+		Spec:        *GetMemorySpec(upstreamURL),
+	}
+}
+
+// GetMemorySpec returns the ServiceAdapter spec for the memory service.
+func GetMemorySpec(upstreamURL string) *Spec {
+	return &Spec{
+		ServiceName: "memory",
+		Upstream: Upstream{
+			URL:            upstreamURL,
+			TimeoutSeconds: 30,
+		},
+		Auth: Auth{
+			Required:   true,
+			Capability: "memory:read",
+		},
+		Resources: []Resource{
+			{
+				Name: "ingest",
+				Methods: []Method{{
+					Verb:         "POST",
+					UpstreamPath: "/memory/ingest",
+					Auth:         &Auth{Required: true, Capability: "memory:write"},
+				}},
+			},
+			{
+				Name: "query",
+				Methods: []Method{{
+					Verb:         "POST",
+					UpstreamPath: "/memory/query",
+					Auth:         &Auth{Required: true, Capability: "memory:read"},
+				}},
+			},
+			{
+				Name: "skills",
+				Methods: []Method{{
+					Verb:         "GET",
+					UpstreamPath: "/memory/skills",
+				}},
+			},
+			{
+				Name: "standing-context",
+				Methods: []Method{{
+					Verb:         "POST",
+					UpstreamPath: "/memory/standing-context",
+					Auth:         &Auth{Required: true, Capability: "memory:read"},
+				}},
+			},
+		},
+	}
+}
diff --git a/internal/serviceadapter/router.go b/internal/serviceadapter/router.go
index 4c090d3..51f5872 100644
--- a/internal/serviceadapter/router.go
+++ b/internal/serviceadapter/router.go
@@ -16,6 +16,7 @@ import (
 
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/auth"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/identity"
+	"forgejo.riotpiao.com/rock/homelab-frontend/internal/logging"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/problem"
 )
 
@@ -74,8 +75,13 @@ func (d *Dispatcher) Dispatch(w http.ResponseWriter, r *http.Request) {
 	}
 
 	// JWT auth enforcement for adapters that require it
-	if adapter.Spec.Auth.Required && d.jwtValidator != nil {
-		if !d.authenticate(w, r, serviceName, method.Verb) {
+	if adapter.Spec.Auth.Required {
+		if d.jwtValidator == nil {
+			logging.Warnf("auth required but jwtValidator nil; request unauthenticated", map[string]string{
+				"service":  serviceName,
+				"resource": resourceName,
+			})
+		} else if !d.authenticate(w, r, serviceName, method) {
 			return
 		}
 	}
@@ -98,7 +104,7 @@ func (d *Dispatcher) Dispatch(w http.ResponseWriter, r *http.Request) {
 
 // authenticate validates the JWT and checks service-level capability.
 // Returns false (and writes error response) if auth fails.
-func (d *Dispatcher) authenticate(w http.ResponseWriter, r *http.Request, serviceName, verb string) bool {
+func (d *Dispatcher) authenticate(w http.ResponseWriter, r *http.Request, serviceName string, method *Method) bool {
 	authHeader := r.Header.Get("Authorization")
 	if authHeader == "" {
 		d.writeError(w, problem.NewProblem(http.StatusUnauthorized,
@@ -115,8 +121,11 @@ func (d *Dispatcher) authenticate(w http.ResponseWriter, r *http.Request, servic
 		return false
 	}
 
-	// Check capability: <service>:read for GET/HEAD, <service>:write for mutating verbs
-	required := capabilityForVerb(serviceName, verb)
+	// Check capability: method-level Auth.Capability if set; else derive from verb.
+	required := capabilityForVerb(serviceName, method.Verb)
+	if method.Auth != nil && method.Auth.Capability != "" {
+		required = method.Auth.Capability
+	}
 	if !d.jwtValidator.CheckPermissions(claims, required, "*") {
 		d.writeError(w, problem.NewProblem(http.StatusForbidden,
 			"about:blank#insufficient-permissions", "Insufficient Permissions",
diff --git a/internal/serviceadapter/router_test.go b/internal/serviceadapter/router_test.go
index 35ac7a7..29f3508 100644
--- a/internal/serviceadapter/router_test.go
+++ b/internal/serviceadapter/router_test.go
@@ -1,11 +1,19 @@
 package serviceadapter
 
 import (
+	"crypto/rand"
+	"crypto/rsa"
+	"encoding/base64"
 	"encoding/json"
+	"math/big"
 	"net/http"
 	"net/http/httptest"
 	"testing"
+	"time"
 
+	"github.com/golang-jwt/jwt/v5"
+
+	"forgejo.riotpiao.com/rock/homelab-frontend/internal/auth"
 	"forgejo.riotpiao.com/rock/homelab-frontend/internal/identity"
 )
 
@@ -263,3 +271,197 @@ func TestDispatch_IdentityHeadersNotSet_WhenNoAuth(t *testing.T) {
 		t.Errorf("X-Auth-Verified should not be set without auth, got %q", gotVerified)
 	}
 }
+
+// TestDispatch_MethodCapabilityOverridesPOSTDefault verifies that a method-level
+// Auth.Capability (e.g. "memory:read" on a POST standing-context endpoint) is
+// respected instead of the verb-derived capability ("memory:write").
+// Because auth.Validator is a concrete struct requiring real JWKS, we pass nil
+// jwtValidator so auth is bypassed and assert only that routing succeeds (not 403).
+func TestDispatch_MethodCapabilityOverridesPOSTDefault(t *testing.T) {
+	// Upstream captures the request so we can verify it was routed.
+	upstream := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		w.WriteHeader(http.StatusOK)
+	}))
+	defer upstream.Close()
+
+	// Memory-like adapter: POST standing-context with method-level Auth.Capability=memory:read.
+	adapter := ServiceAdapter{
+		Name:        "memory",
+		ServiceName: "memory",
+		Spec: Spec{
+			ServiceName: "memory",
+			Upstream:    Upstream{URL: upstream.URL, TimeoutSeconds: 5},
+			Auth:        Auth{Required: false},
+			Resources: []Resource{
+				{
+					Name: "standing-context",
+					Methods: []Method{
+						{
+							Verb:         "POST",
+							UpstreamPath: "/memory/standing-context",
+							// Override: read capability even though verb is POST.
+							Auth: &Auth{Capability: "memory:read"},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	// nil jwtValidator: auth.Required=false + nil validator → auth skipped entirely.
+	d := NewDispatcher(newTestRegistry(adapter), nil)
+	w := httptest.NewRecorder()
+	r := httptest.NewRequest("POST", "/", nil)
+	r.Header.Set("X-Service", "memory")
+	r.Header.Set("X-Resource", "standing-context")
+
+	d.Dispatch(w, r)
+
+	// Must NOT be 403: the method-level memory:read override is not checked
+	// against verb-derived memory:write (auth is bypassed with nil validator).
+	// Must be 200 routed to real upstream.
+	if w.Code == http.StatusForbidden {
+		t.Errorf("got 403 Forbidden; memory:read override should not produce forbidden (auth bypassed)")
+	}
+	if w.Code != http.StatusOK {
+		t.Errorf("expected 200 from upstream, got %d", w.Code)
+	}
+}
+
+// TestAuthenticate_MethodCapabilityOverrideDirect calls d.Dispatch() with a real
+// signed RS256 JWT so authenticate() executes end-to-end and the capability-override
+// branch (router.go lines 124-130) is reached and covered.
+//
+// Sub-test 1: token has "memory:read", method.Auth.Capability="memory:read" → 200.
+// Sub-test 2: token has "memory:read", no method override → POST derives
+//
+//	"memory:write" → CheckPermissions fails → 403.
+func TestAuthenticate_MethodCapabilityOverrideDirect(t *testing.T) {
+	// Generate an RSA key pair for signing test JWTs.
+	privateKey, err := rsa.GenerateKey(rand.Reader, 2048)
+	if err != nil {
+		t.Fatalf("rsa.GenerateKey: %v", err)
+	}
+
+	// Build minimal JWKS document from the RSA public key.
+	nBytes := privateKey.PublicKey.N.Bytes()
+	eBig := new(big.Int).SetInt64(int64(privateKey.PublicKey.E))
+	eBytes := eBig.Bytes()
+	jwksDoc, _ := json.Marshal(map[string]interface{}{
+		"keys": []map[string]interface{}{
+			{
+				"kty": "RSA",
+				"use": "sig",
+				"kid": "test-key",
+				"alg": "RS256",
+				"n":   base64.RawURLEncoding.EncodeToString(nBytes),
+				"e":   base64.RawURLEncoding.EncodeToString(eBytes),
+			},
+		},
+	})
+
+	// Serve JWKS from a local test server.
+	jwksSrv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		w.Header().Set("Content-Type", "application/json")
+		w.Write(jwksDoc)
+	}))
+	defer jwksSrv.Close()
+
+	// Upstream that returns 200 when authenticate() passes.
+	upstreamSrv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		w.WriteHeader(http.StatusOK)
+	}))
+	defer upstreamSrv.Close()
+
+	// signJWT returns a signed RS256 token with the given permissions slice.
+	signJWT := func(permissions []string) string {
+		tok := jwt.NewWithClaims(jwt.SigningMethodRS256, jwt.MapClaims{
+			"iss":         "https://authentik.riotpiao.com/application/o/test/",
+			"aud":         "test-audience",
+			"sub":         "test-user",
+			"exp":         time.Now().Add(time.Hour).Unix(),
+			"iat":         time.Now().Unix(),
+			"permissions": permissions,
+		})
+		tok.Header["kid"] = "test-key"
+		signed, err := tok.SignedString(privateKey)
+		if err != nil {
+			t.Fatalf("sign JWT: %v", err)
+		}
+		return signed
+	}
+
+	validator := auth.NewValidator("", "", jwksSrv.URL)
+
+	// Sub-test 1: method.Auth.Capability="memory:read"; token has "memory:read".
+	// authenticate() must execute the override branch and pass → upstream returns 200.
+	t.Run("capability_override_match_reaches_upstream", func(t *testing.T) {
+		adapter := ServiceAdapter{
+			Name:        "memory",
+			ServiceName: "memory",
+			Spec: Spec{
+				ServiceName: "memory",
+				Upstream:    Upstream{URL: upstreamSrv.URL, TimeoutSeconds: 5},
+				Auth:        Auth{Required: true},
+				Resources: []Resource{
+					{
+						Name: "standing-context",
+						Methods: []Method{
+							{
+								Verb:         "POST",
+								UpstreamPath: "/memory/standing-context",
+								Auth:         &Auth{Capability: "memory:read"}, // override
+							},
+						},
+					},
+				},
+			},
+		}
+		d := NewDispatcher(newTestRegistry(adapter), validator)
+		w := httptest.NewRecorder()
+		r := httptest.NewRequest("POST", "/", nil)
+		r.Header.Set("X-Service", "memory")
+		r.Header.Set("X-Resource", "standing-context")
+		r.Header.Set("Authorization", "Bearer "+signJWT([]string{"memory:read"}))
+		d.Dispatch(w, r)
+		if w.Code != http.StatusOK {
+			t.Errorf("expected 200 (override memory:read match), got %d body=%s", w.Code, w.Body.String())
+		}
+	})
+
+	// Sub-test 2: no method-level Auth override; POST → capabilityForVerb → "memory:write".
+	// Token has only "memory:read" → CheckPermissions fails → 403.
+	t.Run("verb_derived_capability_mismatch_returns_403", func(t *testing.T) {
+		adapter := ServiceAdapter{
+			Name:        "memory",
+			ServiceName: "memory",
+			Spec: Spec{
+				ServiceName: "memory",
+				Upstream:    Upstream{URL: upstreamSrv.URL, TimeoutSeconds: 5},
+				Auth:        Auth{Required: true},
+				Resources: []Resource{
+					{
+						Name: "data",
+						Methods: []Method{
+							{
+								Verb:         "POST",
+								UpstreamPath: "/memory/data",
+								// No method-level Auth: POST derives "memory:write".
+							},
+						},
+					},
+				},
+			},
+		}
+		d := NewDispatcher(newTestRegistry(adapter), validator)
+		w := httptest.NewRecorder()
+		r := httptest.NewRequest("POST", "/", nil)
+		r.Header.Set("X-Service", "memory")
+		r.Header.Set("X-Resource", "data")
+		r.Header.Set("Authorization", "Bearer "+signJWT([]string{"memory:read"}))
+		d.Dispatch(w, r)
+		if w.Code != http.StatusForbidden {
+			t.Errorf("expected 403 (write required, read only in token), got %d body=%s", w.Code, w.Body.String())
+		}
+	})
+}