diff --git a/main.py b/main.py
index 5ab334f..40bead1 100644
--- a/main.py
+++ b/main.py
@@ -3,6 +3,7 @@
 import asyncio
 import os
 import sys
+import threading
 from flask import Flask
 from flask_cors import CORS
 
@@ -56,6 +57,32 @@ register_routes(app)
 log_structured('info', "Flask routes registered.")
 
 
+def _launch_graphrag_background_thread():
+    """Launch GraphRAG initialization in a daemon thread with its own event loop.
+
+    Neo4j operations (connect, get_triplets, upsert_nodes, build_communities)
+    are synchronous blocking calls. Running them in an asyncio task would block
+    the main event loop and prevent Hypercorn from serving requests. A separate
+    thread with its own event loop avoids this entirely.
+    """
+    def _run():
+        loop = asyncio.new_event_loop()
+        asyncio.set_event_loop(loop)
+        try:
+            success = loop.run_until_complete(initialize_graphrag_components())
+            if success:
+                log_structured('info', "Background GraphRAG initialization completed successfully")
+            else:
+                log_structured('warning', "Background GraphRAG initialization failed — vector search still works")
+        except Exception as e:
+            log_structured('error', f"Background GraphRAG initialization error: {e}")
+        finally:
+            loop.close()
+
+    t = threading.Thread(target=_run, name="graphrag-init", daemon=True)
+    t.start()
+
+
 # --- Startup Function ---
 async def startup_event() -> bool:
     """Tasks to run when the application starts.
@@ -94,22 +121,14 @@ async def startup_event() -> bool:
     else:
         log_structured('info', "Phase 1 complete: vector index and agent are available")
 
-    # 3. Phase 2: Launch GraphRAG initialization as a background task
+    # 3. Phase 2: Launch GraphRAG initialization in a background THREAD.
+    #    This MUST run in a thread, not an asyncio task, because the Neo4j
+    #    operations (connect, get_triplets, build_communities, etc.) are
+    #    synchronous blocking calls. If run as an asyncio task, they block
+    #    the event loop and prevent Hypercorn from accepting connections.
     if vector_success:
-        log_structured('info', "Phase 2: Launching GraphRAG initialization in background...")
-
-        async def _background_graphrag_init():
-            try:
-                success = await initialize_graphrag_components()
-                if success:
-                    log_structured('info', "Background GraphRAG initialization completed successfully")
-                else:
-                    log_structured('warning', "Background GraphRAG initialization failed — vector search still works")
-            except Exception as e:
-                log_structured('error', f"Background GraphRAG initialization error: {e}")
-
-        # Schedule as a background task — does not block server startup
-        asyncio.ensure_future(_background_graphrag_init())
+        log_structured('info', "Phase 2: Launching GraphRAG initialization in background thread...")
+        _launch_graphrag_background_thread()
     else:
         log_structured('warning', "Skipping GraphRAG background init because vector init failed")
 
@@ -176,8 +195,8 @@ if __name__ == '__main__':
                 log_structured('critical', "Emergency initialization failed. Server will run but chat will be impaired.")
             else:
                 log_structured('info', "Emergency initialization succeeded.")
-                # Also try GraphRAG in background
-                asyncio.ensure_future(initialize_graphrag_components())
+                # Also try GraphRAG in background thread
+                _launch_graphrag_background_thread()
 
         # Start serving — background GraphRAG init continues in same event loop
         await hypercorn_serve(app, config)