diff --git a/master/election_callback.py b/master/election_callback.py
new file mode 100644
index 00000000..a3cba9b4
--- /dev/null
+++ b/master/election_callback.py
@@ -0,0 +1,24 @@
+from logging import Logger
+
+from master.forwarder_supervisor import ForwarderRole, ForwarderSupervisor
+
+
+class ElectionCallbacks:
+    """
+    Simple callbacks for the Rust election system to invoke.
+    No event system involvement - just direct forwarder control.
+    """
+    
+    def __init__(self, forwarder_supervisor: ForwarderSupervisor, logger: Logger):
+        self._forwarder_supervisor = forwarder_supervisor
+        self._logger = logger
+    
+    async def on_became_master(self) -> None:
+        """Called when this node is elected as master"""
+        self._logger.info("Node elected as master")
+        await self._forwarder_supervisor.notify_role_change(ForwarderRole.MASTER)
+    
+    async def on_became_replica(self) -> None:
+        """Called when this node becomes a replica"""
+        self._logger.info("Node demoted to replica")
+        await self._forwarder_supervisor.notify_role_change(ForwarderRole.REPLICA)
\ No newline at end of file
diff --git a/master/env.py b/master/env.py
index dadeee5f..284bf585 100644
--- a/master/env.py
+++ b/master/env.py
@@ -1,5 +1,8 @@
+from pathlib import Path
+
 from shared.env import BaseEnv
 
 
 class MasterEnvironmentSchema(BaseEnv):
-    pass
+    # Master-specific: forwarder configuration
+    FORWARDER_BINARY_PATH: Path | None = None
diff --git a/master/forwarder_supervisor.py b/master/forwarder_supervisor.py
new file mode 100644
index 00000000..bdec1f7e
--- /dev/null
+++ b/master/forwarder_supervisor.py
@@ -0,0 +1,186 @@
+import asyncio
+import contextlib
+from enum import Enum
+from logging import Logger
+from pathlib import Path
+
+from shared.constants import (
+    EXO_GLOBAL_EVENT_DB,
+    EXO_WORKER_EVENT_DB,
+    LIBP2P_GLOBAL_EVENTS_TOPIC,
+    LIBP2P_WORKER_EVENTS_TOPIC,
+)
+
+
+class ForwarderRole(str, Enum):
+    """Role determines which forwarding pairs to use"""
+    MASTER = "master"
+    REPLICA = "replica"
+
+
+class ForwarderSupervisor:
+    """
+    Manages the forwarder subprocess for SQLite ↔ libp2p event forwarding.
+    The forwarder is a single process that handles multiple forwarding pairs.
+    
+    Master mode forwards:
+    - sqlite:worker_events.db:events → libp2p:worker_events (share local worker events)
+    - libp2p:worker_events → sqlite:global_events.db:events (collect network worker events)  
+    - sqlite:global_events.db:events → libp2p:global_events (broadcast merged global log)
+    
+    Replica mode forwards:
+    - sqlite:worker_events.db:events → libp2p:worker_events (share local worker events)
+    - libp2p:global_events → sqlite:global_events.db:events (receive global log from master)
+    """
+    
+    def __init__(
+        self, 
+        forwarder_binary_path: Path,
+        logger: Logger,
+        health_check_interval: float = 5.0
+    ):
+        self._binary_path = forwarder_binary_path
+        self._logger = logger
+        self._health_check_interval = health_check_interval
+        self._current_role: ForwarderRole | None = None
+        self._process: asyncio.subprocess.Process | None = None
+        self._health_check_task: asyncio.Task[None] | None = None
+        
+    async def notify_role_change(self, new_role: ForwarderRole) -> None:
+        """
+        Called by external systems (e.g., election handler) when role changes.
+        This is the main public interface.
+        """
+        if self._current_role == new_role:
+            self._logger.debug(f"Role unchanged: {new_role}")
+            return
+            
+        self._logger.info(f"Role changing from {self._current_role} to {new_role}")
+        self._current_role = new_role
+        await self._restart_with_role(new_role)
+    
+    async def start_as_replica(self) -> None:
+        """Convenience method to start in replica mode"""
+        await self.notify_role_change(ForwarderRole.REPLICA)
+    
+    async def stop(self) -> None:
+        """Stop forwarder and cleanup"""
+        await self._stop_process()
+        self._current_role = None
+    
+    def _get_forwarding_pairs(self, role: ForwarderRole) -> str:
+        """
+        Generate forwarding pairs based on role.
+        Returns list of "source,sink" strings.
+        """
+        pairs: list[str] = []
+        
+        # Both master and replica forward local worker events to network
+        pairs.append(
+            f"sqlite:{EXO_WORKER_EVENT_DB}:events|libp2p:{LIBP2P_WORKER_EVENTS_TOPIC}"
+        )
+        
+        if role == ForwarderRole.MASTER:
+            # Master: collect worker events from network into global log
+            pairs.append(
+                f"libp2p:{LIBP2P_WORKER_EVENTS_TOPIC}|sqlite:{EXO_GLOBAL_EVENT_DB}:events"
+            )
+            # Master: broadcast global events to network
+            pairs.append(
+                f"sqlite:{EXO_GLOBAL_EVENT_DB}:events|libp2p:{LIBP2P_GLOBAL_EVENTS_TOPIC}"
+            )
+        else:  # REPLICA
+            # Replica: receive global events from master
+            pairs.append(
+                f"libp2p:{LIBP2P_GLOBAL_EVENTS_TOPIC}|sqlite:{EXO_GLOBAL_EVENT_DB}:events"
+            )
+        
+        return ','.join(pairs)
+    
+    async def _restart_with_role(self, role: ForwarderRole) -> None:
+        """Internal method to restart forwarder with new role"""
+        await self._stop_process()
+        
+        
+        pairs: str = self._get_forwarding_pairs(role)
+        self._process = await asyncio.create_subprocess_exec(
+            str(self._binary_path),
+            f'{pairs}',
+            stdout=asyncio.subprocess.PIPE,
+            stderr=asyncio.subprocess.PIPE
+        )
+        
+        self._logger.info(f"Starting forwarder with forwarding pairs: {pairs}")
+        
+        # Start health monitoring
+        self._health_check_task = asyncio.create_task(
+            self._monitor_health()
+        )
+    
+    async def _stop_process(self) -> None:
+        """Stop the forwarder process gracefully"""
+        if self._health_check_task:
+            self._health_check_task.cancel()
+            with contextlib.suppress(asyncio.CancelledError):
+                await self._health_check_task
+            self._health_check_task = None
+        
+        if self._process:
+            # Check if process is already dead
+            if self._process.returncode is None:
+                # Process is still alive, terminate it
+                try:
+                    self._process.terminate()
+                    await asyncio.wait_for(self._process.wait(), timeout=5.0)
+                except asyncio.TimeoutError:
+                    self._logger.warning("Forwarder didn't terminate, killing")
+                    self._process.kill()
+                    await self._process.wait()
+                except ProcessLookupError:
+                    # Process already dead
+                    pass
+            self._process = None
+    
+    async def _monitor_health(self) -> None:
+        """Monitor process health and restart if it crashes"""
+        while self._process and self._current_role:
+            try:
+                # Check if process is still alive
+                retcode = await asyncio.wait_for(
+                    self._process.wait(),
+                    timeout=self._health_check_interval
+                )
+                # Process exited
+                self._logger.error(f"Forwarder exited with code {retcode}")
+                
+                # Auto-restart
+                await asyncio.sleep(0.2)  # Brief delay before restart
+                if self._current_role:  # Still have a role
+                    await self._restart_with_role(self._current_role)
+                break
+                
+            except asyncio.TimeoutError:
+                # Process still running, continue monitoring
+                continue
+            except asyncio.CancelledError:
+                break
+    
+    @property
+    def is_running(self) -> bool:
+        """Check if forwarder process is running"""
+        return self._process is not None and self._process.returncode is None
+    
+    @property
+    def current_role(self) -> ForwarderRole | None:
+        """Get current forwarder role (for testing)"""
+        return self._current_role
+    
+    @property
+    def process_pid(self) -> int | None:
+        """Get current process PID (for testing)"""
+        return self._process.pid if self._process else None
+    
+    @property
+    def process(self) -> asyncio.subprocess.Process | None:
+        """Get current process (for testing)"""
+        return self._process
diff --git a/master/main.py b/master/main.py
index 730289ac..a8fd53ca 100644
--- a/master/main.py
+++ b/master/main.py
@@ -106,6 +106,45 @@ async def lifespan(app: FastAPI):
     metrics_listener.start()
     cluster_listener.start()
 
+    # # Get validated environment
+    # env = get_validated_env(MasterEnvironmentSchema, logger)
+    
+    # # Initialize event log manager (creates both worker and global event DBs)
+    # event_log_config = EventLogConfig()  # Uses default config
+    # event_log_manager = EventLogManager(
+    #     config=event_log_config,
+    #     logger=logger
+    # )
+    # await event_log_manager.initialize()
+    
+    # # Store for use in API handlers
+    # app.state.event_log_manager = event_log_manager
+    
+    # # Initialize forwarder if configured
+    # if env.FORWARDER_BINARY_PATH:
+    #     forwarder_supervisor = ForwarderSupervisor(
+    #         forwarder_binary_path=env.FORWARDER_BINARY_PATH,
+    #         logger=logger
+    #     )
+    #     # Start as replica by default (until elected)
+    #     await forwarder_supervisor.start_as_replica()
+        
+    #     # Create election callbacks for Rust election system
+    #     election_callbacks = ElectionCallbacks(
+    #         forwarder_supervisor=forwarder_supervisor,
+    #         logger=logger
+    #     )
+        
+    #     # Make callbacks available for Rust code to invoke
+    #     app.state.election_callbacks = election_callbacks
+        
+    #     # Log status
+    #     logger.info(
+    #         f"Forwarder supervisor initialized. Running: {forwarder_supervisor.is_running}"
+    #     )
+    # else:
+    #     logger.warning("No forwarder binary path configured")
+    #     forwarder_supervisor = None
     # initial_state = get_master_state(logger)
     # app.state.master_event_loop = MasterEventLoop()
     # await app.state.master_event_loop.start()
diff --git a/master/tests/test_forwarder_manager.py b/master/tests/test_forwarder_manager.py
new file mode 100644
index 00000000..0160362b
--- /dev/null
+++ b/master/tests/test_forwarder_manager.py
@@ -0,0 +1,379 @@
+"""
+Comprehensive unit tests for Forwardersupervisor.
+Tests basic functionality, process management, and edge cases.
+"""
+import asyncio
+import logging
+import os
+import tempfile
+from pathlib import Path
+from typing import AsyncGenerator, Callable, Generator
+from unittest.mock import AsyncMock, MagicMock
+
+import pytest
+import pytest_asyncio
+
+from master.election_callback import ElectionCallbacks
+from master.forwarder_supervisor import (
+    ForwarderRole,
+    ForwarderSupervisor,
+)
+from shared.constants import (
+    EXO_GLOBAL_EVENT_DB,
+    EXO_WORKER_EVENT_DB,
+    LIBP2P_GLOBAL_EVENTS_TOPIC,
+    LIBP2P_WORKER_EVENTS_TOPIC,
+)
+
+# Mock forwarder script content
+MOCK_FORWARDER_SCRIPT = '''#!/usr/bin/env python3
+"""Mock forwarder for testing."""
+import os
+import sys
+import time
+import signal
+from pathlib import Path
+
+
+def log(message: str) -> None:
+    """Write to both stdout and a log file for test verification"""
+    print(message, flush=True)
+    
+    # Also write to a file for test verification
+    log_file = os.environ.get("MOCK_LOG_FILE")
+    if log_file:
+        with open(log_file, "a") as f:
+            f.write(f"{time.time()}: {message}\\n")
+
+
+def handle_signal(signum: int, frame: object) -> None:
+    """Handle termination signals gracefully"""
+    log(f"Received signal {signum}")
+    sys.exit(0)
+
+
+def main() -> None:
+    # Register signal handlers
+    signal.signal(signal.SIGTERM, handle_signal)
+    signal.signal(signal.SIGINT, handle_signal)
+    
+    # Log startup with arguments
+    args = sys.argv[1:] if len(sys.argv) > 1 else []
+    log(f"Mock forwarder started with args: {args}")
+    
+    # Write PID file if requested (for testing process management)
+    pid_file = os.environ.get("MOCK_PID_FILE")
+    if pid_file:
+        Path(pid_file).write_text(str(os.getpid()))
+    
+    # Check for test control environment variables
+    exit_after = os.environ.get("MOCK_EXIT_AFTER")
+    exit_code = int(os.environ.get("MOCK_EXIT_CODE", "0"))
+    hang_mode = os.environ.get("MOCK_HANG_MODE", "false").lower() == "true"
+    ignore_signals = os.environ.get("MOCK_IGNORE_SIGNALS", "false").lower() == "true"
+    
+    if ignore_signals:
+        # Ignore SIGTERM for testing force kill scenarios
+        signal.signal(signal.SIGTERM, signal.SIG_IGN)
+        log("Ignoring SIGTERM signal")
+    
+    # Simulate work
+    start_time = time.time()
+    while True:
+        if exit_after and (time.time() - start_time) >= float(exit_after):
+            log(f"Exiting after {exit_after} seconds with code {exit_code}")
+            sys.exit(exit_code)
+        
+        if hang_mode:
+            # Simulate a hanging process (no CPU usage but not responding)
+            time.sleep(3600)  # Sleep for an hour
+        else:
+            # Normal operation - small sleep to not consume CPU
+            time.sleep(0.1)
+
+
+if __name__ == "__main__":
+    main()
+'''
+
+
+@pytest.fixture
+def temp_dir() -> Generator[Path, None, None]:
+    """Create a temporary directory and clean it up after test."""
+    temp_path = Path(tempfile.mkdtemp(prefix="exo_test_"))
+    yield temp_path
+    # Clean up
+    import shutil
+    shutil.rmtree(temp_path, ignore_errors=True)
+
+
+@pytest.fixture
+def mock_forwarder_script(temp_dir: Path) -> Path:
+    """Create the mock forwarder executable."""
+    mock_script = temp_dir / "mock_forwarder.py"
+    mock_script.write_text(MOCK_FORWARDER_SCRIPT)
+    mock_script.chmod(0o755)
+    return mock_script
+
+
+@pytest.fixture
+def test_logger() -> logging.Logger:
+    """Create a test logger."""
+    logger = logging.getLogger("test_forwarder")
+    logger.setLevel(logging.DEBUG)
+    
+    # Add console handler for debugging
+    if not logger.handlers:
+        handler = logging.StreamHandler()
+        handler.setLevel(logging.DEBUG)
+        formatter = logging.Formatter('%(asctime)s - %(name)s - %(levelname)s - %(message)s')
+        handler.setFormatter(formatter)
+        logger.addHandler(handler)
+    
+    return logger
+
+
+@pytest.fixture
+def mock_env_vars(temp_dir: Path) -> dict[str, str]:
+    """Environment variables for controlling mock forwarder behavior."""
+    return {
+        "MOCK_LOG_FILE": str(temp_dir / "mock_forwarder.log"),
+        "MOCK_PID_FILE": str(temp_dir / "mock_forwarder.pid"),
+    }
+
+
+@pytest_asyncio.fixture
+async def cleanup_processes() -> AsyncGenerator[set[int], None]:
+    """Track and cleanup any processes created during tests."""
+    tracked_pids: set[int] = set()
+    
+    yield tracked_pids
+    
+    # Cleanup any remaining processes - simplified to avoid psutil dependency
+    import contextlib
+    import subprocess
+    for pid in tracked_pids:
+        with contextlib.suppress(Exception):
+            subprocess.run(["kill", str(pid)], check=False, timeout=1)
+
+
+@pytest.fixture
+def track_subprocess(cleanup_processes: set[int]) -> Callable[[asyncio.subprocess.Process], asyncio.subprocess.Process]:
+    """Function to track subprocess PIDs for cleanup."""
+    def track(process: asyncio.subprocess.Process) -> asyncio.subprocess.Process:
+        if process.pid:
+            cleanup_processes.add(process.pid)
+        return process
+    return track
+
+
+class TestForwardersupervisorBasic:
+    """Basic functionality tests for Forwardersupervisor."""
+    
+    @pytest.mark.asyncio
+    async def test_start_as_replica(
+        self,
+        mock_forwarder_script: Path,
+        mock_env_vars: dict[str, str],
+        test_logger: logging.Logger,
+        track_subprocess: Callable[[asyncio.subprocess.Process], asyncio.subprocess.Process]
+    ) -> None:
+        """Test starting forwarder in replica mode."""
+        # Set environment
+        os.environ.update(mock_env_vars)
+        
+        supervisor = ForwarderSupervisor(mock_forwarder_script, test_logger)
+        await supervisor.start_as_replica()
+        
+        # Track the process for cleanup
+        if supervisor.process:
+            track_subprocess(supervisor.process)
+        
+        try:
+            # Verify process is running
+            assert supervisor.is_running
+            assert supervisor.current_role == ForwarderRole.REPLICA
+            
+            # Wait a bit for log file to be written
+            await asyncio.sleep(0.5)
+            
+            # Verify forwarding pairs in log
+            log_content = Path(mock_env_vars["MOCK_LOG_FILE"]).read_text()
+            
+            # Expected replica forwarding pairs
+            expected_pairs = [
+                f"sqlite:{EXO_WORKER_EVENT_DB}:events|libp2p:{LIBP2P_WORKER_EVENTS_TOPIC}",
+                f"libp2p:{LIBP2P_GLOBAL_EVENTS_TOPIC}|sqlite:{EXO_GLOBAL_EVENT_DB}:events"
+            ]
+            
+            # Check that the forwarder received the correct arguments
+            assert all(pair in log_content for pair in expected_pairs)
+            
+        finally:
+            await supervisor.stop()
+            assert not supervisor.is_running
+
+    @pytest.mark.asyncio
+    async def test_role_change_replica_to_master(
+        self,
+        mock_forwarder_script: Path,
+        mock_env_vars: dict[str, str],
+        test_logger: logging.Logger,
+        track_subprocess: Callable[[asyncio.subprocess.Process], asyncio.subprocess.Process]
+    ) -> None:
+        """Test changing role from replica to master."""
+        os.environ.update(mock_env_vars)
+        
+        supervisor = ForwarderSupervisor(mock_forwarder_script, test_logger)
+        await supervisor.start_as_replica()
+        
+        if supervisor.process:
+            track_subprocess(supervisor.process)
+        
+        try:
+            # Change to master
+            await supervisor.notify_role_change(ForwarderRole.MASTER)
+            
+            if supervisor.process:
+                track_subprocess(supervisor.process)
+            
+            # Wait for restart
+            await asyncio.sleep(0.5)
+            
+            assert supervisor.is_running
+            assert supervisor.current_role == ForwarderRole.MASTER
+            
+            # Verify new forwarding pairs
+            log_content = Path(mock_env_vars["MOCK_LOG_FILE"]).read_text()
+            
+            # Expected master forwarding pairs
+            master_pairs = [
+                f"libp2p:{LIBP2P_WORKER_EVENTS_TOPIC}|sqlite:{EXO_GLOBAL_EVENT_DB}:events",
+                f"sqlite:{EXO_GLOBAL_EVENT_DB}:events|libp2p:{LIBP2P_GLOBAL_EVENTS_TOPIC}"
+            ]
+            
+            assert all(pair in log_content for pair in master_pairs)
+            
+        finally:
+            await supervisor.stop()
+
+    @pytest.mark.asyncio
+    async def test_idempotent_role_change(
+        self,
+        mock_forwarder_script: Path,
+        mock_env_vars: dict[str, str],
+        test_logger: logging.Logger,
+        track_subprocess: Callable[[asyncio.subprocess.Process], asyncio.subprocess.Process],
+    ) -> None:
+        """Test that setting the same role twice doesn't restart the process."""
+        os.environ.update(mock_env_vars)
+        
+        supervisor = ForwarderSupervisor(mock_forwarder_script, test_logger)
+        await supervisor.start_as_replica()
+        
+        original_pid = supervisor.process_pid
+        if supervisor.process:
+            track_subprocess(supervisor.process)
+        
+        try:
+            # Try to change to the same role
+            await supervisor.notify_role_change(ForwarderRole.REPLICA)
+            
+            # Should not restart (same PID)
+            assert supervisor.process_pid == original_pid
+            
+        finally:
+            await supervisor.stop()
+
+    @pytest.mark.asyncio
+    async def test_process_crash_and_restart(
+        self,
+        mock_forwarder_script: Path,
+        mock_env_vars: dict[str, str],
+        test_logger: logging.Logger,
+        track_subprocess: Callable[[asyncio.subprocess.Process], asyncio.subprocess.Process]
+    ) -> None:
+        """Test that Forwardersupervisor restarts the process if it crashes."""
+        # Configure mock to exit after 1 second
+        mock_env_vars["MOCK_EXIT_AFTER"] = "1"
+        mock_env_vars["MOCK_EXIT_CODE"] = "1"
+        os.environ.update(mock_env_vars)
+        
+        supervisor = ForwarderSupervisor(
+            mock_forwarder_script,
+            test_logger,
+            health_check_interval=0.5  # Faster health checks for testing
+        )
+        await supervisor.start_as_replica()
+        
+        original_pid = supervisor.process_pid
+        if supervisor.process:
+            track_subprocess(supervisor.process)
+        
+        try:
+            # Wait for first crash
+            await asyncio.sleep(1.5)
+            
+            # Process should have crashed
+            assert not supervisor.is_running or supervisor.process_pid != original_pid
+            
+            # Clear the crash-inducing environment variables so restart works
+            if "MOCK_EXIT_AFTER" in os.environ:
+                del os.environ["MOCK_EXIT_AFTER"]
+            if "MOCK_EXIT_CODE" in os.environ:
+                del os.environ["MOCK_EXIT_CODE"]
+            
+            # Wait for restart
+            await asyncio.sleep(1.0)
+            
+            # Process should have restarted with new PID
+            assert supervisor.is_running
+            assert supervisor.process_pid != original_pid
+            
+            # Track new process
+            if supervisor.process:
+                track_subprocess(supervisor.process)
+            
+        finally:
+            await supervisor.stop()
+
+    @pytest.mark.asyncio
+    async def test_nonexistent_binary(
+        self, 
+        test_logger: logging.Logger, 
+        temp_dir: Path
+    ) -> None:
+        """Test behavior when forwarder binary doesn't exist."""
+        nonexistent_path = temp_dir / "nonexistent_forwarder"
+        
+        supervisor = ForwarderSupervisor(nonexistent_path, test_logger)
+        
+        # Should raise FileNotFoundError
+        with pytest.raises(FileNotFoundError):
+            await supervisor.start_as_replica()
+
+
+class TestElectionCallbacks:
+    """Test suite for ElectionCallbacks."""
+    
+    @pytest.mark.asyncio
+    async def test_on_became_master(self, test_logger: logging.Logger) -> None:
+        """Test callback when becoming master."""
+        mock_supervisor = MagicMock(spec=ForwarderSupervisor)
+        mock_supervisor.notify_role_change = AsyncMock()
+        
+        callbacks = ElectionCallbacks(mock_supervisor, test_logger)
+        await callbacks.on_became_master()
+        
+        mock_supervisor.notify_role_change.assert_called_once_with(ForwarderRole.MASTER)  # type: ignore
+
+    @pytest.mark.asyncio
+    async def test_on_became_replica(self, test_logger: logging.Logger) -> None:
+        """Test callback when becoming replica."""
+        mock_supervisor = MagicMock(spec=ForwarderSupervisor)
+        mock_supervisor.notify_role_change = AsyncMock()
+        
+        callbacks = ElectionCallbacks(mock_supervisor, test_logger)
+        await callbacks.on_became_replica()
+        
+        mock_supervisor.notify_role_change.assert_called_once_with(ForwarderRole.REPLICA) # type: ignore
\ No newline at end of file
diff --git a/shared/constants.py b/shared/constants.py
index 8172da3a..d187de03 100644
--- a/shared/constants.py
+++ b/shared/constants.py
@@ -12,6 +12,10 @@ EXO_WORKER_LOG = EXO_HOME / "worker.log"
 EXO_WORKER_KEYRING_FILE = EXO_HOME / "worker_keyring"
 EXO_MASTER_KEYRING_FILE = EXO_HOME / "master_keyring"
 
+# libp2p topics for event forwarding
+LIBP2P_WORKER_EVENTS_TOPIC = "worker_events"
+LIBP2P_GLOBAL_EVENTS_TOPIC = "global_events"
+
 
 # little helper function to get the name of the module that raised the error
 def get_caller_module_name() -> str: