diff --git a/api/connectivity_manager.py b/api/connectivity_manager.py
index ce8d421..fc1a824 100644
--- a/api/connectivity_manager.py
+++ b/api/connectivity_manager.py
@@ -145,6 +145,14 @@ class ConnectivityManager(BaseServiceManager):
     # Only a single Tor instance is supported (one Tor container per cell).
     SINGLE_INSTANCE_TYPES = ("tor",)
 
+    # A cell_relay connection represents "route this peer's internet through a
+    # connected cell that offers its exit". It is NOT manually created — it is
+    # auto-derived (reconciled) from cell links that offer an exit. It needs a
+    # mark+table for policy routing but no local iface/redirect_port/container:
+    # egress happens through the cell WG tunnel, not a local exit container.
+    CELL_RELAY_TYPE = "cell_relay"
+    CELL_RELAY_NAME_PREFIX = "Cell: "
+
     # fwmark block 0x1000–0x1FFF, stride 0x10.
     MARK_BASE = 0x1000
     MARK_STRIDE = 0x10
@@ -208,6 +216,12 @@ class ConnectivityManager(BaseServiceManager):
         # Set after construction in managers.py (composer is built later) — used
         # to bring per-connection containers up/down out-of-process.
         self.service_composer = service_composer
+        # Set after construction in managers.py — used to derive cell_relay
+        # connections from cell links that offer an exit, and to drive cell
+        # exit routing / handshake-based health. Optional: when unset, the
+        # cell_relay reconcile is a no-op (no cell links to surface).
+        self.cell_link_manager = None
+        self.wireguard_manager = None
 
         # Serializes connection CRUD + resource allocation across threads.
         self._conn_lock = threading.RLock()
@@ -384,6 +398,18 @@ class ConnectivityManager(BaseServiceManager):
         if self.peer_registry is None:
             return {'ok': False, 'error': 'peer_registry not available'}
 
+        # A cell_relay assignment must not form an exit loop (A→B→A). Reject
+        # before persisting so the UI surfaces the error rather than silently
+        # creating a cycle that apply_routes would later refuse.
+        target = self._connection_by_id(exit_via)
+        if target is not None and target.get('type') == self.CELL_RELAY_TYPE:
+            peer = self.peer_registry.get_peer(peer_name) if self.peer_registry else None
+            if peer is not None and self._cell_relay_loops(peer, target.get('cell_name')):
+                return {'ok': False, 'error':
+                        f"routing {peer_name!r} via cell {target.get('cell_name')!r} "
+                        f'would form an exit loop (that cell already uses this cell '
+                        f'as its exit relay)'}
+
         try:
             ok = self.peer_registry.set_peer_exit_via(peer_name, exit_via)
         except Exception as e:
@@ -397,6 +423,29 @@ class ConnectivityManager(BaseServiceManager):
                         f"must be a connection id or 'default'"}
             return {'ok': False, 'error': f'peer {peer_name!r} not found'}
 
+        # Keep the legacy route_via in sync: a cell_relay assignment drives the
+        # cell-routing path (route_via set in apply_routes), but reassigning away
+        # from a cell must clear the stale route_via so the cell route is torn
+        # down and startup replay no longer reapplies it.
+        if target is None or target.get('type') != self.CELL_RELAY_TYPE:
+            try:
+                cur = self.peer_registry.get_peer(peer_name)
+                if cur and cur.get('route_via'):
+                    via_cell = cur.get('route_via')
+                    self.peer_registry.set_route_via(peer_name, None)
+                    if self.wireguard_manager is not None:
+                        src_ip = self._peer_source_ip(peer_name)
+                        if src_ip:
+                            try:
+                                self.wireguard_manager.remove_peer_route_via(src_ip)
+                            except Exception as e:
+                                logger.warning(f"set_peer_exit: remove_peer_route_via "
+                                               f"{src_ip}: {e}")
+                    logger.info(f"set_peer_exit: cleared cell route_via "
+                                f"{via_cell!r} for {peer_name!r}")
+            except Exception as e:
+                logger.warning(f"set_peer_exit: route_via cleanup failed: {e}")
+
         try:
             self.apply_routes()
         except Exception as e:
@@ -1406,8 +1455,140 @@ class ConnectivityManager(BaseServiceManager):
                 logger.debug(f"_connection_reference (egress): {e}")
         return None
 
+    # ── Cell-relay connections (derived from cell links) ──────────────────
+
+    @staticmethod
+    def _offers_exit(link: Dict[str, Any]) -> bool:
+        """True when a cell link makes its internet available as an exit relay.
+
+        `remote_exit_offered` is set when the remote cell pushed an offer to us
+        (the common case); `exit_offered` is the locally-recorded flag. Either
+        being true means the cell is usable as a relay from our side.
+        """
+        return bool(link.get('remote_exit_offered') or link.get('exit_offered'))
+
+    def _list_cell_links(self) -> List[Dict[str, Any]]:
+        """Return cell link records, or [] when no cell_link_manager is wired."""
+        if self.cell_link_manager is None:
+            return []
+        try:
+            links = self.cell_link_manager.list_connections()
+        except Exception as e:
+            logger.warning(f"connectivity: list cell links failed: {e}")
+            return []
+        return links if isinstance(links, list) else []
+
+    def reconcile_cell_relays(self) -> Dict[str, Any]:
+        """Ensure a cell_relay connection exists for each exit-offering cell link.
+
+        For every cell link that offers an exit, ensure exactly one cell_relay
+        connection named "Cell: <cellname>" exists (carrying mark+table, no
+        iface/redirect_port/container, and cell_name set). Remove cell_relay
+        connections whose offer was withdrawn or whose cell link is gone, unless
+        a peer is still assigned to them (those are kept but reported stale so
+        routing falls back to default rather than silently breaking).
+
+        Idempotent and safe to call on every connection list / cell-link change.
+        Returns {'created': [...], 'removed': [...]}.
+        """
+        created: List[str] = []
+        removed: List[str] = []
+        if self.config_manager is None:
+            return {'created': created, 'removed': removed}
+
+        with self._conn_lock:
+            try:
+                conns = self.config_manager.list_connections()
+            except Exception as e:
+                logger.warning(f"reconcile_cell_relays: list_connections failed: {e}")
+                return {'created': created, 'removed': removed}
+
+            existing = {c.get('cell_name'): c for c in conns
+                        if c.get('type') == self.CELL_RELAY_TYPE and c.get('cell_name')}
+            offering = {l.get('cell_name'): l for l in self._list_cell_links()
+                        if l.get('cell_name') and self._offers_exit(l)}
+
+            # Create cell_relay connections for newly-offered cells.
+            for cell_name, link in offering.items():
+                if cell_name in existing:
+                    continue
+                rec = self._build_cell_relay_record(cell_name)
+                if rec is None:
+                    continue
+                try:
+                    self.config_manager.add_connection(rec)
+                    created.append(rec['id'])
+                    logger.info(f"connectivity: derived cell_relay for cell "
+                                f"{cell_name!r} → {rec['id']}")
+                except Exception as e:
+                    logger.warning(f"reconcile_cell_relays: persist {cell_name!r} "
+                                   f"failed: {e}")
+
+            # Remove cell_relay connections whose offer was withdrawn — unless a
+            # peer still references them (left in place so deletion never strands
+            # a peer; apply_routes treats an un-offered relay as down).
+            for cell_name, rec in existing.items():
+                if cell_name in offering:
+                    continue
+                if self._connection_reference(rec.get('id')):
+                    logger.info(f"connectivity: cell_relay {rec.get('id')} for "
+                                f"{cell_name!r} no longer offered but still "
+                                f"referenced; keeping")
+                    continue
+                try:
+                    self.config_manager.delete_connection(rec.get('id'))
+                    removed.append(rec.get('id'))
+                    logger.info(f"connectivity: removed stale cell_relay "
+                                f"{rec.get('id')} for cell {cell_name!r}")
+                except Exception as e:
+                    logger.warning(f"reconcile_cell_relays: delete {cell_name!r} "
+                                   f"failed: {e}")
+
+        return {'created': created, 'removed': removed}
+
+    def _build_cell_relay_record(self, cell_name: str) -> Optional[Dict[str, Any]]:
+        """Build a new cell_relay connection record (mark+table, no iface/port)."""
+        conn_id = self._new_conn_id()
+        try:
+            mark, table, iface, redirect_port = self._allocate_resources(
+                self.CELL_RELAY_TYPE, conn_id)
+        except ValueError as e:
+            logger.warning(f"_build_cell_relay_record({cell_name}): {e}")
+            return None
+        now = self._now_iso()
+        return {
+            'id': conn_id,
+            'type': self.CELL_RELAY_TYPE,
+            'name': f"{self.CELL_RELAY_NAME_PREFIX}{cell_name}",
+            'enabled': True,
+            'mark': mark,
+            'table': table,
+            'iface': iface,
+            'redirect_port': redirect_port,
+            'config': {},
+            'secret_refs': [],
+            'cell_name': cell_name,
+            'status': {
+                'state': 'configured',
+                'health': 'unknown',
+                'last_check': None,
+                'detail': None,
+            },
+            'created_at': now,
+            'updated_at': now,
+        }
+
     def list_connections(self) -> List[Dict[str, Any]]:
-        """Return all connection records (public form, computed status.state)."""
+        """Return all connection records (public form, computed status.state).
+
+        Reconciles cell_relay connections from cell links first so the unified
+        list (and the assignments UI) always reflects currently-offered cell
+        exits without a separate refresh.
+        """
+        try:
+            self.reconcile_cell_relays()
+        except Exception as e:
+            logger.warning(f"list_connections: cell_relay reconcile failed: {e}")
         if self.config_manager is None:
             return []
         try:
@@ -1601,7 +1782,11 @@ class ConnectivityManager(BaseServiceManager):
         connections = self._routing_connections()
 
         # Idempotent ip rule registration: one fwmark→table rule per instance.
+        # cell_relay connections are excluded: their egress is policy-routed
+        # inside cell-wireguard (apply_peer_route_via), not via a host mark/table.
         for conn in connections:
+            if conn.get('type') == self.CELL_RELAY_TYPE:
+                continue
             mark, table = conn.get('mark'), conn.get('table')
             if not isinstance(mark, int) or not isinstance(table, int):
                 continue
@@ -1644,6 +1829,11 @@ class ConnectivityManager(BaseServiceManager):
                 src_ip = self._peer_source_ip(peer.get('peer', ''))
                 if not src_ip:
                     continue
+                # cell_relay peers egress through the connected cell's WG tunnel
+                # (the existing cell-exit mechanism), NOT a local exit container.
+                if conn.get('type') == self.CELL_RELAY_TYPE:
+                    rules_applied += self._apply_cell_relay_for_peer(peer, conn)
+                    continue
                 rules_applied += self._apply_connection_for_src(src_ip, conn)
                 marked_conn_ids.add(conn.get('id'))
 
@@ -1701,6 +1891,18 @@ class ConnectivityManager(BaseServiceManager):
             return None
         return by_id.get(exit_via)
 
+    def _connection_by_id(self, conn_id: str) -> Optional[Dict[str, Any]]:
+        """Look up a raw connection record by id (cell_relay included)."""
+        if not conn_id or conn_id == 'default' or self.config_manager is None:
+            return None
+        try:
+            for c in self.config_manager.list_connections():
+                if c.get('id') == conn_id:
+                    return c
+        except Exception as e:
+            logger.warning(f"_connection_by_id({conn_id}): {e}")
+        return None
+
     def _apply_connection_for_src(
         self, src_ip: str, conn: Dict[str, Any],
     ) -> int:
@@ -1730,6 +1932,116 @@ class ConnectivityManager(BaseServiceManager):
                     f"apply_routes: redirect for {src_ip}/{conn.get('id')}: {e}")
         return applied
 
+    def _cell_relay_link(self, conn: Dict[str, Any]) -> Optional[Dict[str, Any]]:
+        """Resolve a cell_relay connection's backing cell link, or None.
+
+        Returns None when the cell link is gone or no longer offers an exit so
+        apply_routes treats the relay as down (no route applied → peer falls
+        back to its default route rather than a black hole).
+        """
+        cell_name = conn.get('cell_name')
+        if not cell_name:
+            return None
+        for link in self._list_cell_links():
+            if link.get('cell_name') == cell_name and self._offers_exit(link):
+                return link
+        return None
+
+    def _cell_relay_loops(self, peer: Dict[str, Any],
+                          cell_name: str) -> bool:
+        """True when routing this peer via cell_name would form an exit loop.
+
+        A cycle exists when the target cell is itself routing traffic back to
+        US as its exit relay (A→B→A). We detect it from the link record:
+        `exit_offered`/`exit_relay_active` mean we hand our internet to that
+        cell, so also routing a peer *through* it closes the loop.
+        """
+        for link in self._list_cell_links():
+            if link.get('cell_name') != cell_name:
+                continue
+            if link.get('exit_offered') or link.get('exit_relay_active'):
+                logger.warning(
+                    f"apply_routes: refusing to route peer "
+                    f"{peer.get('peer')!r} via cell {cell_name!r} — we already "
+                    f"act as that cell's exit relay (routing loop)")
+                return True
+        return False
+
+    def _apply_cell_relay_for_peer(self, peer: Dict[str, Any],
+                                   conn: Dict[str, Any]) -> int:
+        """Route a peer's internet through the connected cell behind a cell_relay.
+
+        Bridges the connection model onto the existing cell-exit mechanism:
+        policy-routes the peer inside cell-wireguard to the cell's WG IP
+        (wireguard_manager.apply_peer_route_via), keeps peer.route_via in sync
+        so startup replay + firewall reconciliation stay consistent, marks the
+        link's exit relay active, and applies the cell exit firewall rules.
+        Loop-forming assignments (A→B→A) are refused. Returns rules applied.
+        """
+        cell_name = conn.get('cell_name')
+        link = self._cell_relay_link(conn)
+        if link is None:
+            logger.info(f"apply_routes: cell_relay {conn.get('id')} for cell "
+                        f"{cell_name!r} no longer offers an exit; skipping")
+            return 0
+        if self._cell_relay_loops(peer, cell_name):
+            return 0
+
+        peer_ip = (peer.get('ip') or '').split('/')[0]
+        via_wg_ip = link.get('dns_ip')
+        if not peer_ip or not via_wg_ip:
+            logger.warning(f"apply_routes: cell_relay {conn.get('id')} missing "
+                           f"peer_ip/via_wg_ip; skipping")
+            return 0
+
+        applied = 0
+        table = conn.get('table') if isinstance(conn.get('table'), int) else 100
+        if self.wireguard_manager is not None:
+            try:
+                self.wireguard_manager.apply_peer_route_via(
+                    peer_ip, via_wg_ip=via_wg_ip, table=table)
+                applied += 1
+            except Exception as e:
+                logger.warning(f"apply_routes: cell_relay route_via "
+                               f"{peer_ip}→{via_wg_ip}: {e}")
+
+        # Keep the legacy route_via field in sync so the existing startup
+        # replay (app.py) and firewall reconciliation operate on the same peer.
+        if self.peer_registry is not None:
+            try:
+                if peer.get('route_via') != cell_name:
+                    self.peer_registry.set_route_via(peer.get('peer'), cell_name)
+            except Exception as e:
+                logger.warning(f"apply_routes: set_route_via {cell_name!r}: {e}")
+
+        # Mark the relay active on the link + apply the cell exit firewall rules
+        # (idempotent; mirrors apply_remote_permissions' exit_relay path).
+        if self.cell_link_manager is not None:
+            try:
+                self.cell_link_manager.set_exit_relay_active(cell_name, True)
+            except Exception as e:
+                logger.warning(f"apply_routes: set_exit_relay_active "
+                               f"{cell_name!r}: {e}")
+        self._apply_cell_exit_firewall(link)
+        return applied
+
+    def _apply_cell_exit_firewall(self, link: Dict[str, Any]) -> None:
+        """Apply the cell exit FORWARD rules for a cell relay link (best-effort)."""
+        try:
+            import firewall_manager as _fm
+        except Exception as e:
+            logger.debug(f"_apply_cell_exit_firewall: import failed: {e}")
+            return
+        perms = link.get('permissions') or {}
+        inbound = perms.get('inbound', {}) if isinstance(perms, dict) else {}
+        inbound_list = [s for s, v in inbound.items() if v]
+        try:
+            _fm.apply_cell_rules(link.get('cell_name'), link.get('vpn_subnet'),
+                                 inbound_list, exit_relay=True)
+        except Exception as e:
+            logger.warning(f"_apply_cell_exit_firewall({link.get('cell_name')!r}): "
+                           f"{e}")
+
     # ── iptables / ip rule helpers ────────────────────────────────────────
 
     def _wg_iptables(self, args: List[str], timeout: int = 10) -> subprocess.CompletedProcess:
@@ -1919,6 +2231,7 @@ class ConnectivityManager(BaseServiceManager):
         "sshuttle": False,
         "proxy": False,
         "tor": True,
+        "cell_relay": False,
     }
 
     def probe_health(self, connection: Dict[str, Any]) -> Tuple[str, Optional[str]]:
@@ -1939,6 +2252,8 @@ class ConnectivityManager(BaseServiceManager):
                 return self._probe_sshuttle(connection)
             if conn_type == 'proxy':
                 return self._probe_proxy(connection)
+            if conn_type == self.CELL_RELAY_TYPE:
+                return self._probe_cell_relay(connection)
         except Exception as e:
             logger.warning(f"probe_health({connection.get('id')}): {e}")
             return 'unknown', str(e)
@@ -2030,6 +2345,27 @@ class ConnectivityManager(BaseServiceManager):
             return 'working', f'{host}:{port} reachable'
         return 'down', f'upstream {host}:{port} unreachable'
 
+    def _probe_cell_relay(self, conn: Dict[str, Any]) -> Tuple[str, Optional[str]]:
+        """A cell_relay is working when the cell tunnel handshake is recent AND
+        the cell still offers its exit.
+
+        Reuses cell_link_manager.get_connection_status (which enriches the link
+        with the live WireGuard handshake). 'down' when the offer is withdrawn,
+        the link is gone, or the handshake is stale/absent.
+        """
+        cell_name = conn.get('cell_name')
+        if not cell_name or self.cell_link_manager is None:
+            return 'unknown', 'no cell link manager'
+        try:
+            st = self.cell_link_manager.get_connection_status(cell_name)
+        except Exception as e:
+            return 'down', f'cell link unavailable: {e}'
+        if not self._offers_exit(st):
+            return 'down', 'cell no longer offers its exit'
+        if not st.get('online'):
+            return 'down', 'cell tunnel handshake stale or absent'
+        return 'working', 'cell tunnel up + exit offered'
+
     def _listener_reachable(self, container: Optional[str], port: int) -> bool:
         """True when a local TCP listener on `port` is up inside the exit container."""
         r = self._exec_in_container(
diff --git a/api/managers.py b/api/managers.py
index 104f9fd..30d0b74 100644
--- a/api/managers.py
+++ b/api/managers.py
@@ -100,6 +100,10 @@ service_composer = ServiceComposer(config_manager=config_manager, data_dir=DATA_
 # Connectivity brings one container up per connection instance via the composer;
 # wire it now that the composer exists (composer is built after connectivity).
 connectivity_manager.service_composer = service_composer
+# cell_relay connections are derived from cell links and route through the cell
+# WG tunnel; wire the managers that drive that path + handshake-based health.
+connectivity_manager.cell_link_manager = cell_link_manager
+connectivity_manager.wireguard_manager = wireguard_manager
 account_manager  = AccountManager(
     service_registry=service_registry,
     data_dir=DATA_DIR,
diff --git a/api/routes/cells.py b/api/routes/cells.py
index 39bd69e..02e3b0a 100644
--- a/api/routes/cells.py
+++ b/api/routes/cells.py
@@ -176,6 +176,11 @@ def set_exit_offer(cell_name):
         if 'exit_offered' not in data:
             return jsonify({'error': 'exit_offered field required'}), 400
         link = cell_link_manager.set_exit_offered(cell_name, bool(data['exit_offered']))
+        try:
+            from app import connectivity_manager
+            connectivity_manager.reconcile_cell_relays()
+        except Exception as _re:
+            logger.warning(f"cell_relay reconcile after exit-offer failed (non-fatal): {_re}")
         return jsonify({'message': f"Exit offer for '{cell_name}' updated", 'link': link})
     except ValueError as e:
         return jsonify({'error': str(e)}), 404
@@ -262,6 +267,11 @@ def peer_sync_permissions():
         cell_link_manager.apply_remote_permissions(sender_pubkey, perms,
                                                    exit_offered=exit_offered,
                                                    use_as_exit_relay=use_as_exit_relay)
+        try:
+            from app import connectivity_manager
+            connectivity_manager.reconcile_cell_relays()
+        except Exception as _re:
+            logger.warning(f"cell_relay reconcile after peer-sync failed (non-fatal): {_re}")
         return jsonify({'ok': True, 'applied_at': datetime.utcnow().isoformat()})
     except ValueError as e:
         return jsonify({'ok': False, 'error': str(e)}), 404
diff --git a/tests/test_connectivity_cell_relay.py b/tests/test_connectivity_cell_relay.py
new file mode 100644
index 0000000..90e9058
--- /dev/null
+++ b/tests/test_connectivity_cell_relay.py
@@ -0,0 +1,323 @@
+"""
+Phase 7 tests for ConnectivityManager — cell_relay connection type.
+
+A cell_relay connection unifies the cell-to-cell exit-relay concept into the
+connection model: a connected cell that OFFERS its internet surfaces as an
+assignable connection, and peers route through it via the existing cell-exit
+mechanism (wireguard_manager.apply_peer_route_via + firewall cell rules) rather
+than a local exit container.
+
+Covers:
+  - reconcile derives one cell_relay per offering cell link (no dups) and
+    removes it when the offer is withdrawn (unless still referenced)
+  - a cell_relay allocates mark+table but NO iface/redirect_port/container
+  - assigning a peer to a cell_relay drives the cell-routing path (route_via +
+    apply_peer_route_via + cell firewall rules), NOT a local container/redirect
+  - loop detection rejects a cycle (A→B→A)
+  - health derives from the cell tunnel handshake + offer
+
+All subprocess/docker/iptables access is mocked: the cell_link_manager,
+wireguard_manager and firewall_manager are MagicMocks / patched modules, and
+ConnectivityManager's own iptables/ip-rule helpers are patched out.
+"""
+
+import os
+import sys
+import shutil
+import tempfile
+import unittest
+from unittest.mock import MagicMock, patch
+
+sys.path.insert(0, os.path.join(os.path.dirname(__file__), '..', 'api'))
+
+from config_manager import ConfigManager
+from connectivity_manager import ConnectivityManager
+
+
+def _link(cell_name='peercell', **overrides):
+    link = {
+        'cell_name': cell_name,
+        'public_key': 'PUBKEY_' + cell_name,
+        'vpn_subnet': '10.9.0.0/24',
+        'dns_ip': '10.9.0.1',
+        'domain': f'{cell_name}.example',
+        'permissions': {'inbound': {}, 'outbound': {}},
+        'exit_offered': False,
+        'remote_exit_offered': True,
+        'exit_relay_active': False,
+        'remote_exit_relay_active': False,
+    }
+    link.update(overrides)
+    return link
+
+
+class _Base(unittest.TestCase):
+    def setUp(self):
+        self.tmp = tempfile.mkdtemp()
+        self.cfg_file = os.path.join(self.tmp, 'cell_config.json')
+        self.data_dir = os.path.join(self.tmp, 'data')
+        os.makedirs(self.data_dir, exist_ok=True)
+        self.cm = ConfigManager(self.cfg_file, self.data_dir)
+
+        self.peer_registry = MagicMock()
+        self.peer_registry.list_peers.return_value = []
+
+        self.cell_link = MagicMock()
+        self.cell_link.list_connections.return_value = []
+
+        self.wg = MagicMock()
+        self.wg.apply_peer_route_via.return_value = True
+
+        with patch.object(ConnectivityManager, '_subscribe_to_events',
+                          lambda self: None):
+            self.mgr = ConnectivityManager(
+                config_manager=self.cm,
+                peer_registry=self.peer_registry,
+                vault_manager=MagicMock(),
+                data_dir=self.data_dir,
+                config_dir=self.tmp,
+            )
+        self.mgr.cell_link_manager = self.cell_link
+        self.mgr.wireguard_manager = self.wg
+        # Empty v2 slate (no auto-migrated Tor).
+        self.cm.configs['connectivity'] = {'version': 2, 'connections': []}
+        self.cm._save_all_configs()
+
+    def tearDown(self):
+        shutil.rmtree(self.tmp, ignore_errors=True)
+
+    def _raw_relays(self):
+        return [c for c in self.cm.list_connections()
+                if c.get('type') == 'cell_relay']
+
+
+# ---------------------------------------------------------------------------
+# Reconcile from cell links
+# ---------------------------------------------------------------------------
+
+class TestReconcile(_Base):
+
+    def test_creates_relay_for_offering_link(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        res = self.mgr.reconcile_cell_relays()
+        self.assertEqual(len(res['created']), 1)
+        relays = self._raw_relays()
+        self.assertEqual(len(relays), 1)
+        self.assertEqual(relays[0]['cell_name'], 'alpha')
+        self.assertEqual(relays[0]['name'], 'Cell: alpha')
+
+    def test_no_relay_when_no_offer(self):
+        self.cell_link.list_connections.return_value = [
+            _link('alpha', remote_exit_offered=False, exit_offered=False)]
+        self.mgr.reconcile_cell_relays()
+        self.assertEqual(len(self._raw_relays()), 0)
+
+    def test_local_exit_offered_also_surfaces(self):
+        self.cell_link.list_connections.return_value = [
+            _link('alpha', remote_exit_offered=False, exit_offered=True)]
+        self.mgr.reconcile_cell_relays()
+        self.assertEqual(len(self._raw_relays()), 1)
+
+    def test_idempotent_no_duplicates(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        self.mgr.reconcile_cell_relays()
+        r2 = self.mgr.reconcile_cell_relays()
+        self.assertEqual(r2['created'], [])
+        self.assertEqual(len(self._raw_relays()), 1)
+
+    def test_removes_relay_when_offer_withdrawn(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        self.mgr.reconcile_cell_relays()
+        self.assertEqual(len(self._raw_relays()), 1)
+        # Offer withdrawn.
+        self.cell_link.list_connections.return_value = [
+            _link('alpha', remote_exit_offered=False)]
+        res = self.mgr.reconcile_cell_relays()
+        self.assertEqual(len(res['removed']), 1)
+        self.assertEqual(len(self._raw_relays()), 0)
+
+    def test_removes_relay_when_link_gone(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        self.mgr.reconcile_cell_relays()
+        self.cell_link.list_connections.return_value = []
+        self.mgr.reconcile_cell_relays()
+        self.assertEqual(len(self._raw_relays()), 0)
+
+    def test_kept_when_offer_gone_but_still_referenced(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        self.mgr.reconcile_cell_relays()
+        relay_id = self._raw_relays()[0]['id']
+        # A peer references this relay → must not be auto-removed.
+        self.peer_registry.list_peers.return_value = [
+            {'peer': 'laptop', 'exit_via': relay_id}]
+        self.cell_link.list_connections.return_value = []
+        self.mgr.reconcile_cell_relays()
+        self.assertEqual(len(self._raw_relays()), 1)
+
+    def test_list_connections_reconciles(self):
+        # list_connections runs reconcile, so the relay appears without an
+        # explicit reconcile call.
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        listed = self.mgr.list_connections()
+        relays = [c for c in listed if c['type'] == 'cell_relay']
+        self.assertEqual(len(relays), 1)
+
+
+# ---------------------------------------------------------------------------
+# Resource allocation
+# ---------------------------------------------------------------------------
+
+class TestAllocation(_Base):
+
+    def test_relay_has_mark_table_no_iface_port(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        self.mgr.reconcile_cell_relays()
+        relay = self._raw_relays()[0]
+        self.assertIsInstance(relay['mark'], int)
+        self.assertIsInstance(relay['table'], int)
+        self.assertIsNone(relay['iface'])
+        self.assertIsNone(relay['redirect_port'])
+
+    def test_relay_has_no_container(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        self.mgr.reconcile_cell_relays()
+        relay = self._raw_relays()[0]
+        self.assertIsNone(self.mgr.instance_container_name(relay))
+
+    def test_manual_create_rejected(self):
+        res = self.mgr.create_connection('cell_relay', 'Cell: alpha')
+        self.assertFalse(res['ok'])
+        self.assertIn('invalid type', res['error'])
+
+
+# ---------------------------------------------------------------------------
+# Routing drives the cell path, not a local container
+# ---------------------------------------------------------------------------
+
+class TestRouting(_Base):
+
+    def _setup_assigned_peer(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        self.mgr.reconcile_cell_relays()
+        relay = self._raw_relays()[0]
+        self.peer = {'peer': 'laptop', 'ip': '10.0.0.5/32',
+                     'exit_via': relay['id'], 'route_via': None}
+        self.peer_registry.list_peers.return_value = [self.peer]
+        self.peer_registry.get_peer.return_value = self.peer
+        return relay
+
+    def test_apply_routes_drives_cell_path(self):
+        self._setup_assigned_peer()
+        with patch('firewall_manager.apply_cell_rules') as fw, \
+                patch.object(self.mgr, '_ensure_chains'), \
+                patch.object(self.mgr, '_flush_chain'), \
+                patch.object(self.mgr, '_add_mark_rule') as add_mark, \
+                patch.object(self.mgr, '_add_redirect') as add_redirect, \
+                patch.object(self.mgr, '_add_ip_rule'), \
+                patch.object(self.mgr, '_remove_ip_rule'):
+            self.mgr.apply_routes()
+
+        # Cell path was driven.
+        self.wg.apply_peer_route_via.assert_called_once()
+        args, kwargs = self.wg.apply_peer_route_via.call_args
+        self.assertEqual(args[0], '10.0.0.5')
+        self.assertEqual(kwargs.get('via_wg_ip'), '10.9.0.1')
+        fw.assert_called_once()
+        self.assertTrue(fw.call_args.kwargs.get('exit_relay'))
+        self.cell_link.set_exit_relay_active.assert_called_once_with('alpha', True)
+        # route_via kept in sync for startup-replay parity.
+        self.peer_registry.set_route_via.assert_called_once_with('laptop', 'alpha')
+
+        # NOT the local exit container / redirect path.
+        add_mark.assert_not_called()
+        add_redirect.assert_not_called()
+
+    def test_apply_routes_skips_when_offer_withdrawn(self):
+        self._setup_assigned_peer()
+        # Offer withdrawn after assignment: routing must skip (peer falls back).
+        self.cell_link.list_connections.return_value = [
+            _link('alpha', remote_exit_offered=False)]
+        with patch('firewall_manager.apply_cell_rules') as fw, \
+                patch.object(self.mgr, '_ensure_chains'), \
+                patch.object(self.mgr, '_flush_chain'), \
+                patch.object(self.mgr, '_add_ip_rule'), \
+                patch.object(self.mgr, '_remove_ip_rule'):
+            self.mgr.apply_routes()
+        self.wg.apply_peer_route_via.assert_not_called()
+        fw.assert_not_called()
+
+
+# ---------------------------------------------------------------------------
+# Loop detection
+# ---------------------------------------------------------------------------
+
+class TestLoopDetection(_Base):
+
+    def test_set_peer_exit_rejects_loop(self):
+        # We already act as alpha's exit relay (exit_offered True) → routing a
+        # peer THROUGH alpha would close the loop A→B→A.
+        self.cell_link.list_connections.return_value = [
+            _link('alpha', exit_offered=True)]
+        self.mgr.reconcile_cell_relays()
+        relay = self._raw_relays()[0]
+        peer = {'peer': 'laptop', 'ip': '10.0.0.5/32', 'route_via': None}
+        self.peer_registry.get_peer.return_value = peer
+
+        res = self.mgr.set_peer_exit('laptop', relay['id'])
+        self.assertFalse(res['ok'])
+        self.assertIn('loop', res['error'])
+        self.peer_registry.set_peer_exit_via.assert_not_called()
+
+    def test_apply_routes_refuses_loop(self):
+        self.cell_link.list_connections.return_value = [
+            _link('alpha', exit_offered=True)]
+        self.mgr.reconcile_cell_relays()
+        relay = self._raw_relays()[0]
+        peer = {'peer': 'laptop', 'ip': '10.0.0.5/32',
+                'exit_via': relay['id'], 'route_via': None}
+        self.peer_registry.list_peers.return_value = [peer]
+        self.peer_registry.get_peer.return_value = peer
+        with patch('firewall_manager.apply_cell_rules'), \
+                patch.object(self.mgr, '_ensure_chains'), \
+                patch.object(self.mgr, '_flush_chain'), \
+                patch.object(self.mgr, '_add_ip_rule'), \
+                patch.object(self.mgr, '_remove_ip_rule'):
+            self.mgr.apply_routes()
+        self.wg.apply_peer_route_via.assert_not_called()
+
+
+# ---------------------------------------------------------------------------
+# Health derives from cell handshake + offer
+# ---------------------------------------------------------------------------
+
+class TestHealth(_Base):
+
+    def _relay(self):
+        self.cell_link.list_connections.return_value = [_link('alpha')]
+        self.mgr.reconcile_cell_relays()
+        return self._raw_relays()[0]
+
+    def test_working_when_online_and_offered(self):
+        relay = self._relay()
+        self.cell_link.get_connection_status.return_value = {
+            **_link('alpha'), 'online': True}
+        health, _ = self.mgr.probe_health(relay)
+        self.assertEqual(health, 'working')
+
+    def test_down_when_handshake_stale(self):
+        relay = self._relay()
+        self.cell_link.get_connection_status.return_value = {
+            **_link('alpha'), 'online': False}
+        health, _ = self.mgr.probe_health(relay)
+        self.assertEqual(health, 'down')
+
+    def test_down_when_offer_withdrawn(self):
+        relay = self._relay()
+        self.cell_link.get_connection_status.return_value = {
+            **_link('alpha', remote_exit_offered=False), 'online': True}
+        health, _ = self.mgr.probe_health(relay)
+        self.assertEqual(health, 'down')
+
+
+if __name__ == '__main__':
+    unittest.main()
diff --git a/webui/src/pages/connectivity/AssignmentsPage.jsx b/webui/src/pages/connectivity/AssignmentsPage.jsx
index 2f37a40..b4fb0d3 100644
--- a/webui/src/pages/connectivity/AssignmentsPage.jsx
+++ b/webui/src/pages/connectivity/AssignmentsPage.jsx
@@ -70,7 +70,7 @@ function FailopenControl({ value, onChange, saving }) {
 export default function AssignmentsPage() {
   const toasts = useToasts();
   const {
-    connections, peerExits, peerFailopen, serviceEgress, installed, peers, cells,
+    connections, peerExits, peerFailopen, serviceEgress, installed, peers,
     loading, error, reload, setPeerExits, setPeerFailopen, setServiceEgress,
   } = useConnectivityData();
 
@@ -78,7 +78,9 @@ export default function AssignmentsPage() {
   const [savingFailopen, setSavingFailopen] = useState({});
   const [savingService, setSavingService] = useState({});
 
-  // Build grouped options from connection instances + cell-relay placeholders.
+  // Build grouped options from connection instances. cell_relay connections
+  // (derived from cell links that offer an exit) flow through the same
+  // `connections` list and land in the "Cells" group automatically.
   const options = (() => {
     const groups = [];
     Object.keys(GROUP_TYPES).forEach((group) => {
@@ -87,17 +89,6 @@ export default function AssignmentsPage() {
         .map((c) => ({ id: c.id, label: `${c.name} (${typeMeta(c.type).short})` }));
       if (items.length) groups.push({ label: GROUP_LABELS[group], items });
     });
-    // Cell-relay: remote cells that offer their internet. Backend wiring for
-    // cell-relay exits lands in P7; surface them disabled so the option is
-    // discoverable without breaking assignment.
-    const relayItems = (cells || [])
-      .filter((c) => c.remote_exit_offered || c.exit_offered)
-      .map((c) => ({
-        id: `cell:${c.cell_name}`,
-        label: `${c.cell_name} (cell relay — coming soon)`,
-        disabled: true,
-      }));
-    if (relayItems.length) groups.push({ label: 'Cell relay', items: relayItems });
     return { groups };
   })();
 
diff --git a/webui/src/pages/connectivity/shared.jsx b/webui/src/pages/connectivity/shared.jsx
index 0122b91..1009af4 100644
--- a/webui/src/pages/connectivity/shared.jsx
+++ b/webui/src/pages/connectivity/shared.jsx
@@ -50,6 +50,14 @@ export const TYPE_META = {
     group: 'tor',
     service: 'tor',
   },
+  cell_relay: {
+    label: 'Cell relay',
+    short: 'Cell',
+    Icon: Network,
+    color: 'gray',
+    group: 'cells',
+    service: null,
+  },
 };
 
 // Subpage groups → which connection types they contain.
@@ -58,6 +66,7 @@ export const GROUP_TYPES = {
   proxies: ['proxy'],
   ssh: ['sshuttle'],
   tor: ['tor'],
+  cells: ['cell_relay'],
 };
 
 export const GROUP_LABELS = {
@@ -65,6 +74,7 @@ export const GROUP_LABELS = {
   proxies: 'Proxies',
   ssh: 'SSH',
   tor: 'Tor',
+  cells: 'Cells',
 };
 
 export function typeMeta(type) {