diff --git a/package.json b/package.json
index bbe726e..ff2db18 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@valyu/cli",
-  "version": "1.0.7",
+  "version": "1.0.8",
   "description": "The search CLI for knowledge workers",
   "license": "MIT",
   "repository": {
diff --git a/skills/valyu-cli/SKILL.md b/skills/valyu-cli/SKILL.md
index 347c6f9..312b860 100644
--- a/skills/valyu-cli/SKILL.md
+++ b/skills/valyu-cli/SKILL.md
@@ -12,7 +12,7 @@ description: >
 license: MIT
 metadata:
   author: valyu
-  version: "1.0.7"
+  version: "1.0.8"
   homepage: https://valyu.ai
   source: https://github.com/valyuAI/valyu-cli
 inputs:
diff --git a/src/__tests__/install-source.test.ts b/src/__tests__/install-source.test.ts
new file mode 100644
index 0000000..6646267
--- /dev/null
+++ b/src/__tests__/install-source.test.ts
@@ -0,0 +1,66 @@
+import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest';
+
+// The function under test depends on process.argv + process.execPath.
+// We import fresh each test so any module-level caching (none today, but
+// future-proof) doesn't leak between scenarios.
+async function loadDetect() {
+  vi.resetModules();
+  const mod = await import('../lib/install-source.js');
+  return mod.detectInstallSource;
+}
+
+describe('detectInstallSource', () => {
+  let origArgv: string[];
+  let origExecPath: string;
+
+  beforeEach(() => {
+    origArgv = process.argv;
+    origExecPath = process.execPath;
+  });
+
+  afterEach(() => {
+    process.argv = origArgv;
+    Object.defineProperty(process, 'execPath', { value: origExecPath, configurable: true });
+  });
+
+  function setExec(path: string) {
+    Object.defineProperty(process, 'execPath', { value: path, configurable: true });
+  }
+
+  it('classifies a pkg-bundled Homebrew binary via process.execPath even when argv[1] is a /snapshot/ path', async () => {
+    setExec('/opt/homebrew/Cellar/valyu/1.0.6/bin/valyu');
+    process.argv = ['/opt/homebrew/Cellar/valyu/1.0.6/bin/valyu', '/snapshot/valyu-cli/dist/cli.cjs'];
+    const detect = await loadDetect();
+    const src = detect();
+    expect(src.kind).toBe('homebrew');
+  });
+
+  it('classifies a standalone user-local binary via process.execPath', async () => {
+    setExec('/Users/example/.local/bin/valyu');
+    process.argv = ['/Users/example/.local/bin/valyu', '/snapshot/valyu-cli/dist/cli.cjs'];
+    const detect = await loadDetect();
+    const src = detect();
+    expect(src.kind).toBe('binary');
+    if (src.kind === 'binary') expect(src.location).toBe('user-local');
+  });
+
+  it('classifies an npm global install via argv[1] (execPath is node, not valyu)', async () => {
+    setExec('/usr/local/bin/node');
+    process.argv = [
+      '/usr/local/bin/node',
+      '/usr/local/lib/node_modules/@valyu/cli/dist/cli.cjs',
+    ];
+    const detect = await loadDetect();
+    const src = detect();
+    expect(src.kind).toBe('npm-global');
+    if (src.kind === 'npm-global') expect(src.manager).toBe('npm');
+  });
+
+  it('falls back to "unknown" for paths that do not match any known install', async () => {
+    setExec('/usr/local/bin/node');
+    process.argv = ['/usr/local/bin/node', '/some/random/place/cli.cjs'];
+    const detect = await loadDetect();
+    const src = detect();
+    expect(src.kind).toBe('unknown');
+  });
+});
diff --git a/src/lib/install-source.ts b/src/lib/install-source.ts
index 7d571c9..43273bf 100644
--- a/src/lib/install-source.ts
+++ b/src/lib/install-source.ts
@@ -9,9 +9,38 @@ export type InstallSource =
   | { kind: 'dev'; path: string }
   | { kind: 'unknown'; path: string };
 
+// For `pkg`-compiled standalone binaries (Homebrew, the curl installer,
+// the Windows PowerShell installer), `process.argv[1]` resolves to a
+// virtual snapshot path like `/snapshot/valyu-cli/dist/cli.cjs` that
+// lives inside the bundle - useless for install-source detection. The
+// real binary path is `process.execPath` in that case.
+//
+// For Node-script invocations (npm global install, dev via tsx/node),
+// `process.execPath` is just `node` itself, so the script path in
+// `process.argv[1]` is what we want.
+//
+// Heuristic: if `process.execPath` has a `valyu`-shaped basename, we're
+// running a compiled binary and should trust it. Otherwise fall back
+// to argv[1].
 function executablePath(): string {
+  const exe = process.execPath;
+  const exeLower = exe.toLowerCase();
+  const looksLikeCompiledBinary =
+    exeLower.endsWith('/valyu') ||
+    exeLower.endsWith('\\valyu.exe') ||
+    exeLower.endsWith('/valyu.exe') ||
+    /\/cellar\/valyu\//.test(exeLower);
+
+  if (looksLikeCompiledBinary) {
+    try {
+      return realpathSync(exe);
+    } catch {
+      return exe;
+    }
+  }
+
   const script = process.argv[1];
-  if (!script) return process.execPath;
+  if (!script) return exe;
   try {
     return realpathSync(script);
   } catch {
diff --git a/src/lib/version.ts b/src/lib/version.ts
index 3411384..b0c931f 100644
--- a/src/lib/version.ts
+++ b/src/lib/version.ts
@@ -1,2 +1,2 @@
-export const VERSION = '1.0.7';
+export const VERSION = '1.0.8';
 export const PACKAGE_NAME = '@valyu/cli';