diff --git a/.kiro/specs/xce-test-rc-file/tasks.md b/.kiro/specs/xce-test-rc-file/tasks.md
index 459a580f..9452bf27 100644
--- a/.kiro/specs/xce-test-rc-file/tasks.md
+++ b/.kiro/specs/xce-test-rc-file/tasks.md
@@ -33,7 +33,7 @@
   - _Boundary: test.c::main_
 
 - [ ] 3. Validation: end-to-end behavior against the built binary
-- [ ] 3.1 Verify rc-file discovery, loading, and skip-flag behavior end-to-end
+- [x] 3.1 Verify rc-file discovery, loading, and skip-flag behavior end-to-end
   - Scenario: a valid rc file's settings/context take effect in both a piped run and an interactive run
   - Scenario: the skip flag leaves default settings untouched even with a valid rc file present
   - Observable: an integration test run demonstrates both scenarios pass against the real built binary
@@ -60,3 +60,4 @@
 - Task 1.1: the 2 pre-existing `test_config_repl.c` failures (`test_conf_trim_keeps_only_n_versions`, `test_conf_get_saved_tag_no_config`) are the tracked `bug-1561` overlayfs-artifact regression, unrelated to this spec — expect them to keep appearing in every subsequent task's `controller_unit_test` run; do not treat them as a new regression.
 - Task 1.2: `fopen()` succeeds on a directory path on this platform's glibc — the EISDIR failure only surfaces on the first `getline()` call (`errno=EISDIR`, `ferror(f)` set). A naive `if (!f)` open-failure check misses this; a post-loop `ferror(f)` check is required to catch it (see `rcfile_load()`, bug-1716).
 - Task 1.2: an ASAN heap-use-after-free was observed ONCE in an ad-hoc standalone `controller_unit_test` run (`commit_resolve_pending`/`fsync_worker`/`tap_teardown` in `test_apply_pump.c`) — did not reproduce on a second run or in the canonical `xce-build.sh` run. Unrelated to this spec's files; logged as bug-1717 (unreproduced flake) for tracking. If it recurs on a later task's run, capture the full ASAN report before assuming it's this spec's fault.
+- Task 3.1: `test_rcfile_integration.sh`'s per-test scratch `$HOME` dirs are cleaned via explicit `rm -rf` in each test function's normal flow, but there's no script-level `trap ... EXIT INT TERM` (unlike `clean_failover_preservation.sh`'s global trap) — an interrupted run could leak a small scratch dir. Verified low-impact (small footprint, no leak in normal runs) but worth adding a trap if this script is extended later.
diff --git a/src/controller/testsuite/test_rcfile_integration.sh b/src/controller/testsuite/test_rcfile_integration.sh
new file mode 100755
index 00000000..895e180e
--- /dev/null
+++ b/src/controller/testsuite/test_rcfile_integration.sh
@@ -0,0 +1,286 @@
+#!/usr/bin/env bash
+#
+# test_rcfile_integration.sh — xce-test-rc-file integration test, shell-driven
+# against the REAL built `xce_test` binary. Mirrors clean_failover_preservation.sh's
+# harness conventions in this directory: mktemp -d scratch fixtures, a
+# log()/pass()/failcase() reporting style, explicit per-scenario PASS/FAIL, and
+# a real process exit code (0 == every scenario passed).
+#
+# Design: .kiro/specs/xce-test-rc-file/design.md, "Testing Strategy" ->
+# "Integration Tests". Requirements: .kiro/specs/xce-test-rc-file/requirements.md
+# Requirement 1 (rc-file discovery/loading) and Requirement 2 (--norc opt-out).
+#
+# Task 3.1 scope (implemented here):
+#   test_rcfile_takes_effect_piped()       Req 1.1, 1.2, 1.4, 1.5, 2.3
+#   test_rcfile_takes_effect_interactive() Req 1.1, 1.2, 1.4, 1.5, 2.3
+#   test_norc_skips_rcfile()               Req 2.1, 2.3
+#
+# Task 3.2 (a LATER task, NOT implemented by this file) is expected to append
+# below, reusing the same setup_rc_home/cleanup_rc_home/run_piped/
+# run_interactive_pty helpers and the same pass()/failcase() accounting:
+#   test_rcfile_failure_aborts_piped()        Req 3.1, 3.3, 3.4
+#   test_rcfile_failure_continues_interactive() Req 3.1, 3.2, 3.4
+# and both would be added to the scenario list in main() below.
+#
+# Exit 0 == every scenario PASSed; nonzero == at least one scenario FAILed.
+
+set -u
+
+# ── Config ───────────────────────────────────────────────────────────────────
+HERE="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+REPO_ROOT="$(cd "$HERE/../../.." && pwd)"
+XCE_TEST="${XCE_TEST_BIN:-$REPO_ROOT/src/xce.build/controller/xce_test}"
+
+# xce_test's `masters` setting defaults to "localhost:9990" (test.c's
+# settings[] table) and prints as "<not set>" until something actually
+# assigns it (KVAL() macro in cmd_set). Pick an override value that can never
+# collide with either, so a positive match is unambiguous.
+OVERRIDE_MASTERS="rchost-a:19991,rchost-b:19992"
+NOT_SET="<not set>"
+
+RUN_TIMEOUT_S="${XCE_RCFILE_TEST_TIMEOUT_S:-20}"
+
+FAILURES=0
+RESULTS=()
+
+# The interactive-pty driver (see run_interactive_pty below) is written ONCE
+# to its own temp file rather than fed via a heredoc on the python3 command
+# line -- a heredoc there would compete with the SEPARATE pipe that must also
+# deliver the xce_test command script to the same process's stdin (`python3 -`
+# reads its whole program from stdin, consuming it, leaving nothing for the
+# script itself to read via sys.stdin). Cleaned up on exit.
+PTY_DRIVER="$(mktemp "${TMPDIR:-/tmp}/xce-rcfile-pty-driver.XXXXXX")"
+trap 'rm -f "$PTY_DRIVER"' EXIT
+
+cat >"$PTY_DRIVER" <<'PYEOF'
+import os, pty, select, signal, sys, time
+
+def read_available(fd, timeout):
+    r, _, _ = select.select([fd], [], [], timeout)
+    if fd in r:
+        try:
+            return os.read(fd, 65536)
+        except OSError:
+            return b""
+    return b""
+
+def main():
+    xce_test_bin, homedir, xdg, extra, timeout_s = sys.argv[1:6]
+    timeout_s = float(timeout_s)
+    commands = sys.stdin.read().splitlines()
+
+    env = dict(os.environ)
+    env["HOME"] = homedir
+    if xdg:
+        env["XDG_CONFIG_HOME"] = xdg
+    else:
+        env.pop("XDG_CONFIG_HOME", None)
+
+    args = [xce_test_bin] + ([extra] if extra else [])
+
+    pid, master_fd = pty.fork()
+    if pid == 0:
+        os.execvpe(args[0], args, env)
+        os._exit(127)
+
+    output = b""
+    deadline = time.time() + timeout_s
+
+    # Let xce_test start up and print its first prompt before sending input.
+    time.sleep(0.4)
+    output += read_available(master_fd, 0.4)
+    for cmd in commands:
+        os.write(master_fd, (cmd + "\n").encode())
+        time.sleep(0.3)
+        output += read_available(master_fd, 0.3)
+
+    status = None
+    while time.time() < deadline:
+        chunk = read_available(master_fd, 0.3)
+        if chunk:
+            output += chunk
+            continue
+        pid_done, st = os.waitpid(pid, os.WNOHANG)
+        if pid_done == pid:
+            status = st
+            break
+    if status is None:
+        try:
+            os.kill(pid, signal.SIGKILL)
+        except OSError:
+            pass
+        _, status = os.waitpid(pid, 0)
+
+    while True:
+        chunk = read_available(master_fd, 0.2)
+        if not chunk:
+            break
+        output += chunk
+
+    try:
+        os.close(master_fd)
+    except OSError:
+        pass
+
+    exitcode = os.waitstatus_to_exitcode(status)
+    sys.stdout.buffer.write(output)
+    sys.exit(exitcode if exitcode >= 0 else 1)
+
+main()
+PYEOF
+
+# ── Reporting helpers ────────────────────────────────────────────────────────
+log()      { printf '[rcfile-integration] %s\n' "$*" >&2; }
+pass()     { RESULTS+=("PASS: $1"); log "PASS: $1"; }
+failcase() {
+    RESULTS+=("FAIL: $1 -- $2")
+    log "FAIL: $1 -- $2"
+    FAILURES=$((FAILURES + 1))
+}
+
+# ── Fixture helpers ──────────────────────────────────────────────────────────
+
+# Creates a scratch $HOME with $HOME/config/xce_test/rc containing an
+# OVERRIDE_MASTERS `set masters` line, and echoes "<homedir>|<xdg_config_home>".
+setup_rc_home() {
+    local dir
+    dir="$(mktemp -d "${TMPDIR:-/tmp}/xce-rcfile-it.XXXXXX")" || return 1
+    mkdir -p "$dir/config/xce_test" || return 1
+    printf 'set masters %s\n' "$OVERRIDE_MASTERS" >"$dir/config/xce_test/rc"
+    printf '%s|%s\n' "$dir" "$dir/config"
+}
+
+cleanup_rc_home() {
+    local dir="$1"
+    [ -n "$dir" ] && [ -d "$dir" ] && rm -rf "$dir"
+}
+
+# Extracts the current-value column of the `masters` line from a `set`
+# command's output (cmd_set's "%-12s:%s default: %s\n" format). Robust to the
+# exact column padding and to a value containing an embedded space (the
+# unset-sentinel "<not set>") by capturing everything between the first ':'
+# and the literal " default:" tail.
+masters_value_in_output() {
+    printf '%s\n' "$1" | grep '^masters' | head -1 \
+        | sed -E 's/^masters[[:space:]]*:(.*) default:.*/\1/'
+}
+
+# Runs xce_test PIPED (stdin is not a tty -> scripted/batch mode -- the
+# session's existing abort-on-first-failure default). Args:
+#   $1 homedir  $2 xdg_config_home  $3 script (newline-joined commands)
+#   $4... extra xce_test flags (e.g. --norc)
+# Prints combined stdout+stderr; returns xce_test's own exit code.
+run_piped() {
+    local homedir="$1" xdg="$2" script="$3"
+    shift 3
+    printf '%s\n' "$script" \
+        | env HOME="$homedir" XDG_CONFIG_HOME="$xdg" \
+              timeout "$RUN_TIMEOUT_S" "$XCE_TEST" "$@" 2>&1
+}
+
+# Runs xce_test behind a REAL pty (genuine interactive/TTY session), so
+# libedit's readline() and isatty(STDIN_FILENO)-gated g_interactive/
+# g_continue_on_error behave exactly as they do for a human at a terminal --
+# a piped run cannot exercise this. Uses a small embedded Python driver
+# (pty.fork()), the same technique task 2.2's own implementer used for manual
+# interactive verification of this feature.
+# Args: $1 homedir  $2 xdg_config_home  $3 script  $4 extra flag ("" or e.g. "--norc")
+# Prints the captured pty transcript; returns xce_test's own exit code.
+run_interactive_pty() {
+    local homedir="$1" xdg="$2" script="$3" extra="${4:-}"
+    printf '%s\n' "$script" \
+        | python3 "$PTY_DRIVER" "$XCE_TEST" "$homedir" "$xdg" "$extra" "$RUN_TIMEOUT_S"
+}
+
+# ── Scenarios (task 3.1) ─────────────────────────────────────────────────────
+
+test_rcfile_takes_effect_piped() {
+    local name="rcfile_takes_effect_piped"
+    local fixture homedir xdg out rc mval
+    fixture="$(setup_rc_home)" || { failcase "$name" "setup_rc_home failed"; return; }
+    homedir="${fixture%%|*}"; xdg="${fixture##*|}"
+
+    out="$(run_piped "$homedir" "$xdg" $'set\nquit')"
+    rc=$?
+    mval="$(masters_value_in_output "$out")"
+
+    if [ "$rc" -ne 0 ]; then
+        failcase "$name" "xce_test exited $rc (expected 0); output:"$'\n'"$out"
+    elif [ "$mval" != "$OVERRIDE_MASTERS" ]; then
+        failcase "$name" "expected masters=='$OVERRIDE_MASTERS', got '$mval'; output:"$'\n'"$out"
+    else
+        pass "$name"
+    fi
+    cleanup_rc_home "$homedir"
+}
+
+test_rcfile_takes_effect_interactive() {
+    local name="rcfile_takes_effect_interactive"
+    local fixture homedir xdg out rc mval
+    fixture="$(setup_rc_home)" || { failcase "$name" "setup_rc_home failed"; return; }
+    homedir="${fixture%%|*}"; xdg="${fixture##*|}"
+
+    out="$(run_interactive_pty "$homedir" "$xdg" $'set\nquit')"
+    rc=$?
+    mval="$(masters_value_in_output "$out")"
+
+    if [ "$rc" -ne 0 ]; then
+        failcase "$name" "xce_test exited $rc (expected 0); transcript:"$'\n'"$out"
+    elif [ "$mval" != "$OVERRIDE_MASTERS" ]; then
+        failcase "$name" "expected masters=='$OVERRIDE_MASTERS', got '$mval'; transcript:"$'\n'"$out"
+    elif ! grep -qF 'xce>' <<<"$out"; then
+        failcase "$name" "no 'xce>' interactive prompt seen in transcript -- session may not have been a real tty; transcript:"$'\n'"$out"
+    else
+        pass "$name"
+    fi
+    cleanup_rc_home "$homedir"
+}
+
+test_norc_skips_rcfile() {
+    local name="norc_skips_rcfile"
+    local fixture homedir xdg out rc mval
+    fixture="$(setup_rc_home)" || { failcase "$name" "setup_rc_home failed"; return; }
+    homedir="${fixture%%|*}"; xdg="${fixture##*|}"
+
+    out="$(run_piped "$homedir" "$xdg" $'set\nquit' --norc)"
+    rc=$?
+    mval="$(masters_value_in_output "$out")"
+
+    if [ "$rc" -ne 0 ]; then
+        failcase "$name" "xce_test --norc exited $rc (expected 0); output:"$'\n'"$out"
+    elif [ "$mval" = "$OVERRIDE_MASTERS" ]; then
+        failcase "$name" "--norc did not skip rc-file load -- override value leaked into 'set' output; output:"$'\n'"$out"
+    elif [ "$mval" != "$NOT_SET" ]; then
+        failcase "$name" "expected masters=='$NOT_SET' (never assigned) with --norc, got '$mval'; output:"$'\n'"$out"
+    else
+        pass "$name"
+    fi
+    cleanup_rc_home "$homedir"
+}
+
+# ── Main ──────────────────────────────────────────────────────────────────────
+
+main() {
+    [ -x "$XCE_TEST" ] \
+        || { log "FAIL: xce_test not found/executable: $XCE_TEST (run /xce-build controller)"; exit 1; }
+
+    test_rcfile_takes_effect_piped
+    test_rcfile_takes_effect_interactive
+    test_norc_skips_rcfile
+
+    log "---- summary ----"
+    local r
+    for r in "${RESULTS[@]}"; do
+        log "$r"
+    done
+
+    if [ "$FAILURES" -eq 0 ]; then
+        log "ALL SCENARIOS PASSED"
+        exit 0
+    else
+        log "$FAILURES SCENARIO(S) FAILED"
+        exit 1
+    fi
+}
+
+main "$@"