diff --git a/CLAUDE.md b/CLAUDE.md
index d3cfa02..3c0ddd5 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -68,7 +68,7 @@ envd is a **completely independent Go module**. It is never imported by the main
 
 Startup (`cmd/control-plane/main.go`) wires: config (env vars) → pgxpool → `db.Queries` (sqlc-generated) → Connect RPC client to host agent → `api.Server`. Everything flows through constructor injection.
 
-- **API Server** (`internal/api/server.go`): chi router with middleware. Creates handler structs (`sandboxHandler`, `execHandler`, `filesHandler`, etc.) injected with `db.Queries` and the host agent Connect RPC client. Routes under `/v1/sandboxes/*`.
+- **API Server** (`internal/api/server.go`): chi router with middleware. Creates handler structs (`sandboxHandler`, `execHandler`, `filesHandler`, etc.) injected with `db.Queries` and the host agent Connect RPC client. Routes under `/v1/capsules/*`.
 - **Reconciler** (`internal/api/reconciler.go`): background goroutine (every 30s) that compares DB records against `agent.ListSandboxes()` RPC. Marks orphaned DB entries as "stopped".
 - **Dashboard** (SvelteKit + Tailwind + Bits UI, statically built and embedded via `go:embed`, served as catch-all at root)
 - **Database**: PostgreSQL via pgx/v5. Queries generated by sqlc from `db/queries/sandboxes.sql`. Migrations in `db/migrations/` (goose, plain SQL).
@@ -147,19 +147,19 @@ HIBERNATED → RUNNING (cold snapshot resume, slower)
 
 ### Key Request Flows
 
-**Sandbox creation** (`POST /v1/sandboxes`):
+**Sandbox creation** (`POST /v1/capsules`):
 1. API handler generates sandbox ID, inserts into DB as "pending"
 2. RPC `CreateSandbox` → host agent → `sandbox.Manager.Create()`
 3. Manager: resolve base rootfs → acquire shared loop device → create dm-snapshot (sparse CoW file) → allocate network slot → `CreateNetwork()` (netns + veth + tap + NAT) → `vm.Create()` (start Firecracker with `/dev/mapper/wrenn-{id}`, configure via HTTP API, boot) → `envdclient.WaitUntilReady()` (poll /health) → store in-memory state
 4. API handler updates DB to "running" with host_ip
 
-**Command execution** (`POST /v1/sandboxes/{id}/exec`):
+**Command execution** (`POST /v1/capsules/{id}/exec`):
 1. API handler verifies sandbox is "running" in DB
 2. RPC `Exec` → host agent → `sandbox.Manager.Exec()` → `envdclient.Exec()`
 3. envd client opens bidirectional Connect RPC stream (`process.Start`), collects stdout/stderr/exit_code
 4. API handler checks UTF-8 validity (base64-encodes if binary), updates last_active_at, returns result
 
-**Streaming exec** (`WS /v1/sandboxes/{id}/exec/stream`):
+**Streaming exec** (`WS /v1/capsules/{id}/exec/stream`):
 1. WebSocket upgrade, read first message for cmd/args
 2. RPC `ExecStream` → host agent → `sandbox.Manager.ExecStream()` → `envdclient.ExecStream()`
 3. envd client returns a channel of events; host agent forwards events through the RPC stream
diff --git a/frontend/src/lib/api/capsules.ts b/frontend/src/lib/api/capsules.ts
index 565f14f..3e8f7f3 100644
--- a/frontend/src/lib/api/capsules.ts
+++ b/frontend/src/lib/api/capsules.ts
@@ -17,11 +17,11 @@ export type Capsule = {
 
 
 export async function listCapsules(): Promise<ApiResult<Capsule[]>> {
-	return apiFetch('GET', '/api/v1/sandboxes');
+	return apiFetch('GET', '/api/v1/capsules');
 }
 
 export async function getCapsule(id: string): Promise<ApiResult<Capsule>> {
-	return apiFetch('GET', `/api/v1/sandboxes/${id}`);
+	return apiFetch('GET', `/api/v1/capsules/${id}`);
 }
 
 export type CreateCapsuleParams = {
@@ -32,19 +32,19 @@ export type CreateCapsuleParams = {
 };
 
 export async function createCapsule(params: CreateCapsuleParams): Promise<ApiResult<Capsule>> {
-	return apiFetch('POST', '/api/v1/sandboxes', params);
+	return apiFetch('POST', '/api/v1/capsules', params);
 }
 
 export async function pauseCapsule(id: string): Promise<ApiResult<Capsule>> {
-	return apiFetch('POST', `/api/v1/sandboxes/${id}/pause`);
+	return apiFetch('POST', `/api/v1/capsules/${id}/pause`);
 }
 
 export async function resumeCapsule(id: string): Promise<ApiResult<Capsule>> {
-	return apiFetch('POST', `/api/v1/sandboxes/${id}/resume`);
+	return apiFetch('POST', `/api/v1/capsules/${id}/resume`);
 }
 
 export async function destroyCapsule(id: string): Promise<ApiResult<void>> {
-	return apiFetch('DELETE', `/api/v1/sandboxes/${id}`);
+	return apiFetch('DELETE', `/api/v1/capsules/${id}`);
 }
 
 export type Snapshot = {
@@ -57,8 +57,8 @@ export type Snapshot = {
 	platform: boolean;
 };
 
-export async function createSnapshot(sandboxId: string, name?: string): Promise<ApiResult<Snapshot>> {
-	return apiFetch('POST', '/api/v1/snapshots', { sandbox_id: sandboxId, name });
+export async function createSnapshot(capsuleId: string, name?: string): Promise<ApiResult<Snapshot>> {
+	return apiFetch('POST', '/api/v1/snapshots', { sandbox_id: capsuleId, name });
 }
 
 export async function listSnapshots(typeFilter?: string): Promise<ApiResult<Snapshot[]>> {
diff --git a/frontend/src/lib/api/files.ts b/frontend/src/lib/api/files.ts
index c1d664c..e89daad 100644
--- a/frontend/src/lib/api/files.ts
+++ b/frontend/src/lib/api/files.ts
@@ -53,12 +53,12 @@ export function formatFileSize(bytes: number): string {
 	return `${val < 10 ? val.toFixed(1) : Math.round(val)} ${units[i]}`;
 }
 
-export async function listDir(sandboxId: string, path: string, depth = 1): Promise<ApiResult<ListDirResponse>> {
+export async function listDir(capsuleId: string, path: string, depth = 1): Promise<ApiResult<ListDirResponse>> {
 	try {
 		const headers: Record<string, string> = { 'Content-Type': 'application/json' };
 		if (auth.token) headers['Authorization'] = `Bearer ${auth.token}`;
 
-		const res = await fetch(`/api/v1/sandboxes/${sandboxId}/files/list`, {
+		const res = await fetch(`/api/v1/capsules/${capsuleId}/files/list`, {
 			method: 'POST',
 			headers,
 			body: JSON.stringify({ path, depth }),
@@ -72,12 +72,12 @@ export async function listDir(sandboxId: string, path: string, depth = 1): Promi
 	}
 }
 
-export async function readFile(sandboxId: string, path: string): Promise<ApiResult<string>> {
+export async function readFile(capsuleId: string, path: string): Promise<ApiResult<string>> {
 	try {
 		const headers: Record<string, string> = { 'Content-Type': 'application/json' };
 		if (auth.token) headers['Authorization'] = `Bearer ${auth.token}`;
 
-		const res = await fetch(`/api/v1/sandboxes/${sandboxId}/files/read`, {
+		const res = await fetch(`/api/v1/capsules/${capsuleId}/files/read`, {
 			method: 'POST',
 			headers,
 			body: JSON.stringify({ path }),
@@ -100,11 +100,11 @@ export async function readFile(sandboxId: string, path: string): Promise<ApiResu
 	}
 }
 
-export async function downloadFile(sandboxId: string, path: string, filename: string): Promise<void> {
+export async function downloadFile(capsuleId: string, path: string, filename: string): Promise<void> {
 	const headers: Record<string, string> = { 'Content-Type': 'application/json' };
 	if (auth.token) headers['Authorization'] = `Bearer ${auth.token}`;
 
-	const res = await fetch(`/api/v1/sandboxes/${sandboxId}/files/read`, {
+	const res = await fetch(`/api/v1/capsules/${capsuleId}/files/read`, {
 		method: 'POST',
 		headers,
 		body: JSON.stringify({ path }),
diff --git a/frontend/src/lib/api/metrics.ts b/frontend/src/lib/api/metrics.ts
index c3aaea8..4c192d3 100644
--- a/frontend/src/lib/api/metrics.ts
+++ b/frontend/src/lib/api/metrics.ts
@@ -15,8 +15,8 @@ export type MetricsResponse = {
 	points: MetricPoint[];
 };
 
-export async function fetchSandboxMetrics(id: string, range: MetricRange): Promise<ApiResult<MetricsResponse>> {
-	return apiFetch('GET', `/api/v1/sandboxes/${id}/metrics?range=${range}`);
+export async function fetchCapsuleMetrics(id: string, range: MetricRange): Promise<ApiResult<MetricsResponse>> {
+	return apiFetch('GET', `/api/v1/capsules/${id}/metrics?range=${range}`);
 }
 
 export const METRIC_RANGES: MetricRange[] = ['5m', '10m', '1h', '6h', '24h'];
diff --git a/frontend/src/lib/api/stats.ts b/frontend/src/lib/api/stats.ts
index 3f85483..948ae12 100644
--- a/frontend/src/lib/api/stats.ts
+++ b/frontend/src/lib/api/stats.ts
@@ -24,7 +24,7 @@ export type StatsResponse = {
 };
 
 export async function fetchStats(range: TimeRange): Promise<ApiResult<StatsResponse>> {
-	return apiFetch('GET', `/api/v1/sandboxes/stats?range=${range}`);
+	return apiFetch('GET', `/api/v1/capsules/stats?range=${range}`);
 }
 
 export const POLL_INTERVALS: Record<TimeRange, number> = {
diff --git a/frontend/src/lib/components/FilesTab.svelte b/frontend/src/lib/components/FilesTab.svelte
index 6e221f8..effce24 100644
--- a/frontend/src/lib/components/FilesTab.svelte
+++ b/frontend/src/lib/components/FilesTab.svelte
@@ -11,11 +11,11 @@
 	import { tokenize, type ThemedToken } from '$lib/highlight';
 
 	type Props = {
-		sandboxId: string;
+		capsuleId: string;
 		isRunning: boolean;
 	};
 
-	let { sandboxId, isRunning }: Props = $props();
+	let { capsuleId, isRunning }: Props = $props();
 
 	// Directory navigation state
 	let currentPath = $state('~');
@@ -124,7 +124,7 @@
 		dirLoading = true;
 		dirError = null;
 		const gen = ++dirGeneration;
-		const result = await listDir(sandboxId, currentPath);
+		const result = await listDir(capsuleId, currentPath);
 		if (gen !== dirGeneration) return; // stale response
 		if (result.ok) {
 			entries = result.data.entries ?? [];
@@ -159,7 +159,7 @@
 
 		fileLoading = true;
 		const gen = ++fileGeneration;
-		const result = await readFile(sandboxId, entry.path);
+		const result = await readFile(capsuleId, entry.path);
 		if (gen !== fileGeneration) return; // stale response — user clicked another file
 		if (result.ok) {
 			if (looksLikeBinary(result.data)) {
@@ -197,7 +197,7 @@
 		if (!selectedFile || downloading) return;
 		downloading = true;
 		try {
-			await downloadFile(sandboxId, selectedFile.path, selectedFile.name);
+			await downloadFile(capsuleId, selectedFile.path, selectedFile.name);
 		} catch {
 			fileError = 'Download failed';
 		}
@@ -214,7 +214,7 @@
 
 	async function navigateOrOpenFile(path: string) {
 		// First try as directory
-		const dirResult = await listDir(sandboxId, path);
+		const dirResult = await listDir(capsuleId, path);
 		if (dirResult.ok) {
 			// Resolve actual path from entries (handles ~ expansion by envd)
 			const resolvedEntries = dirResult.data.entries ?? [];
@@ -245,7 +245,7 @@
 		// Navigate to parent directory
 		currentPath = parentPath;
 		pathInput = parentPath;
-		const parentResult = await listDir(sandboxId, parentPath);
+		const parentResult = await listDir(capsuleId, parentPath);
 		if (parentResult.ok) {
 			entries = parentResult.data.entries ?? [];
 			// Find the file in parent listing
diff --git a/frontend/src/lib/components/TerminalTab.svelte b/frontend/src/lib/components/TerminalTab.svelte
index 0e38304..00df00a 100644
--- a/frontend/src/lib/components/TerminalTab.svelte
+++ b/frontend/src/lib/components/TerminalTab.svelte
@@ -3,12 +3,12 @@
 	import { auth } from '$lib/auth.svelte';
 
 	type Props = {
-		sandboxId: string;
+		capsuleId: string;
 		isRunning: boolean;
 		visible?: boolean;
 	};
 
-	let { sandboxId, isRunning, visible = true }: Props = $props();
+	let { capsuleId, isRunning, visible = true }: Props = $props();
 
 	type ConnectionState = 'idle' | 'connecting' | 'connected' | 'disconnected' | 'error';
 
@@ -93,7 +93,7 @@
 	function getWsUrl(): string {
 		const proto = window.location.protocol === 'https:' ? 'wss:' : 'ws:';
 		const token = auth.token ? `?token=${encodeURIComponent(auth.token)}` : '';
-		return `${proto}//${window.location.host}/api/v1/sandboxes/${sandboxId}/pty${token}`;
+		return `${proto}//${window.location.host}/api/v1/capsules/${capsuleId}/pty${token}`;
 	}
 
 	function wsSend(ws: WebSocket | null, data: string) {
diff --git a/frontend/src/lib/highlight.ts b/frontend/src/lib/highlight.ts
index 49523c9..93028ea 100644
--- a/frontend/src/lib/highlight.ts
+++ b/frontend/src/lib/highlight.ts
@@ -17,7 +17,7 @@ let loadingPromise: Promise<HighlighterGeneric<any, any>> | null = null;
 const THEME = 'vesper';
 
 // Extensions → shiki language IDs.
-// Only map what we expect users to encounter in sandboxes.
+// Only map what we expect users to encounter in capsules.
 const EXT_TO_LANG: Record<string, string> = {
 	// Go
 	go: 'go', mod: 'go', sum: 'go',
diff --git a/frontend/src/routes/admin/hosts/+page.svelte b/frontend/src/routes/admin/hosts/+page.svelte
index 362b9ff..2cd4d06 100644
--- a/frontend/src/routes/admin/hosts/+page.svelte
+++ b/frontend/src/routes/admin/hosts/+page.svelte
@@ -77,7 +77,7 @@
 
 	// Delete confirmation
 	let deleteTarget = $state<Host | null>(null);
-	let deletePreviewSandboxes = $state<string[]>([]);
+	let deletePreviewCapsules = $state<string[]>([]);
 	let deletePreviewLoading = $state(false);
 	let deleting = $state(false);
 	let deleteError = $state<string | null>(null);
@@ -124,12 +124,12 @@
 	async function openDeleteConfirm(host: Host) {
 		deleteTarget = host;
 		deleteError = null;
-		deletePreviewSandboxes = [];
+		deletePreviewCapsules = [];
 		deletePreviewLoading = true;
 		const preview = await getDeletePreview(host.id);
 		deletePreviewLoading = false;
 		if (preview.ok) {
-			deletePreviewSandboxes = preview.data.sandbox_ids;
+			deletePreviewCapsules = preview.data.sandbox_ids;
 		}
 	}
 
@@ -137,7 +137,7 @@
 		if (!deleteTarget) return;
 		deleting = true;
 		deleteError = null;
-		const result = await deleteHost(deleteTarget.id, deletePreviewSandboxes.length > 0);
+		const result = await deleteHost(deleteTarget.id, deletePreviewCapsules.length > 0);
 		if (result.ok) {
 			allHosts = allHosts.filter((h) => h.id !== deleteTarget!.id);
 			deleteTarget = null;
@@ -627,10 +627,10 @@
 					<svg class="animate-spin" width="13" height="13" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2"><path d="M21 12a9 9 0 1 1-6.219-8.56"/></svg>
 					Checking active capsules…
 				</div>
-			{:else if deletePreviewSandboxes.length > 0}
+			{:else if deletePreviewCapsules.length > 0}
 				<div class="mt-4 rounded-[var(--radius-input)] border border-[var(--color-amber)]/30 bg-[var(--color-amber)]/6 px-3 py-2.5">
 					<p class="text-meta font-semibold text-[var(--color-amber)]">
-						{deletePreviewSandboxes.length} active capsule{deletePreviewSandboxes.length === 1 ? '' : 's'} will be destroyed.
+						{deletePreviewCapsules.length} active capsule{deletePreviewCapsules.length === 1 ? '' : 's'} will be destroyed.
 					</p>
 					<p class="mt-0.5 text-meta text-[var(--color-amber)]/70">
 						All running workloads on this host will be terminated immediately.
@@ -661,7 +661,7 @@
 						<svg class="animate-spin" width="13" height="13" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2"><path d="M21 12a9 9 0 1 1-6.219-8.56"/></svg>
 						Deleting…
 					{:else}
-						{deletePreviewSandboxes.length > 0 ? 'Force Delete' : 'Delete'}
+						{deletePreviewCapsules.length > 0 ? 'Force Delete' : 'Delete'}
 					{/if}
 				</button>
 			</div>
diff --git a/frontend/src/routes/dashboard/capsules/[id]/+page.svelte b/frontend/src/routes/dashboard/capsules/[id]/+page.svelte
index a90d334..a8bfb4d 100644
--- a/frontend/src/routes/dashboard/capsules/[id]/+page.svelte
+++ b/frontend/src/routes/dashboard/capsules/[id]/+page.svelte
@@ -9,14 +9,14 @@
 	import FilesTab from '$lib/components/FilesTab.svelte';
 	import TerminalTab from '$lib/components/TerminalTab.svelte';
 	import {
-		fetchSandboxMetrics,
+		fetchCapsuleMetrics,
 		METRIC_RANGES,
 		METRIC_POLL_INTERVALS,
 		type MetricRange,
 		type MetricPoint
 	} from '$lib/api/metrics';
 
-	const sandboxId: string = $page.params.id ?? '';
+	const capsuleId: string = $page.params.id ?? '';
 
 	let capsule = $state<Capsule | null>(null);
 	let capsuleLoading = $state(true);
@@ -96,7 +96,7 @@
 	);
 
 	async function loadCapsule() {
-		const result = await getCapsule(sandboxId);
+		const result = await getCapsule(capsuleId);
 		if (result.ok) {
 			capsule = result.data;
 			capsuleError = null;
@@ -108,7 +108,7 @@
 
 	async function loadMetrics() {
 		if (!metricsAvailable) return;
-		const result = await fetchSandboxMetrics(sandboxId, range);
+		const result = await fetchCapsuleMetrics(capsuleId, range);
 		if (result.ok) {
 			points = result.data.points;
 			metricsError = null;
@@ -441,7 +441,7 @@
 </script>
 
 <svelte:head>
-	<title>Wrenn — {sandboxId}</title>
+	<title>Wrenn — {capsuleId}</title>
 </svelte:head>
 
 <style>
@@ -575,11 +575,11 @@
 	<!-- Tab content -->
 	<!-- Terminal stays mounted so sessions survive tab switches -->
 	<div class="flex flex-1 min-h-0" style:display={activeTab === 'terminal' ? 'flex' : 'none'}>
-		<TerminalTab sandboxId={sandboxId} isRunning={capsule.status === 'running'} visible={activeTab === 'terminal'} />
+		<TerminalTab capsuleId={capsuleId} isRunning={capsule.status === 'running'} visible={activeTab === 'terminal'} />
 	</div>
 	{#if activeTab === 'files'}
 		<div class="anim-in flex flex-1 min-h-0" style="animation-delay: 0.05s">
-			<FilesTab sandboxId={sandboxId} isRunning={capsule.status === 'running'} />
+			<FilesTab capsuleId={capsuleId} isRunning={capsule.status === 'running'} />
 		</div>
 	{:else if activeTab === 'metrics'}
 		<div
@@ -757,14 +757,14 @@
 
 <SnapshotDialog
 	open={showSnapshot}
-	capsuleId={sandboxId}
+	capsuleId={capsuleId}
 	onclose={() => { showSnapshot = false; }}
 	onsnapshot={() => { goto('/dashboard/capsules'); }}
 />
 
 <DestroyDialog
 	open={showDestroy}
-	capsuleId={sandboxId}
+	capsuleId={capsuleId}
 	onclose={() => { showDestroy = false; }}
 	ondestroyed={() => { goto('/dashboard/capsules'); }}
 />
diff --git a/frontend/src/routes/dashboard/hosts/+page.svelte b/frontend/src/routes/dashboard/hosts/+page.svelte
index 8e657d6..106a049 100644
--- a/frontend/src/routes/dashboard/hosts/+page.svelte
+++ b/frontend/src/routes/dashboard/hosts/+page.svelte
@@ -43,7 +43,7 @@
 
 	// Delete confirmation
 	let deleteTarget = $state<Host | null>(null);
-	let deletePreviewSandboxes = $state<string[]>([]);
+	let deletePreviewCapsules = $state<string[]>([]);
 	let deletePreviewLoading = $state(false);
 	let deleting = $state(false);
 	let deleteError = $state<string | null>(null);
@@ -97,12 +97,12 @@
 	async function openDeleteConfirm(host: Host) {
 		deleteTarget = host;
 		deleteError = null;
-		deletePreviewSandboxes = [];
+		deletePreviewCapsules = [];
 		deletePreviewLoading = true;
 		const preview = await getDeletePreview(host.id);
 		deletePreviewLoading = false;
 		if (preview.ok) {
-			deletePreviewSandboxes = preview.data.sandbox_ids;
+			deletePreviewCapsules = preview.data.sandbox_ids;
 		}
 	}
 
@@ -110,7 +110,7 @@
 		if (!deleteTarget) return;
 		deleting = true;
 		deleteError = null;
-		const result = await deleteHost(deleteTarget.id, deletePreviewSandboxes.length > 0);
+		const result = await deleteHost(deleteTarget.id, deletePreviewCapsules.length > 0);
 		if (result.ok) {
 			hosts = hosts.filter((h) => h.id !== deleteTarget!.id);
 			deleteTarget = null;
@@ -583,10 +583,10 @@
 					<svg class="animate-spin" width="13" height="13" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2"><path d="M21 12a9 9 0 1 1-6.219-8.56"/></svg>
 					Checking active capsules…
 				</div>
-			{:else if deletePreviewSandboxes.length > 0}
+			{:else if deletePreviewCapsules.length > 0}
 				<div class="mt-4 rounded-[var(--radius-input)] border border-[var(--color-amber)]/20 bg-[var(--color-amber)]/5 px-3 py-2.5">
 					<p class="text-meta font-semibold text-[var(--color-amber)]">
-						{deletePreviewSandboxes.length} active capsule{deletePreviewSandboxes.length === 1 ? '' : 's'} will be destroyed.
+						{deletePreviewCapsules.length} active capsule{deletePreviewCapsules.length === 1 ? '' : 's'} will be destroyed.
 					</p>
 					<p class="mt-0.5 text-meta text-[var(--color-amber)]/70">
 						All running workloads on this host will be terminated immediately.
@@ -617,7 +617,7 @@
 						<svg class="animate-spin" width="13" height="13" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2"><path d="M21 12a9 9 0 1 1-6.219-8.56"/></svg>
 						Deleting…
 					{:else}
-						{deletePreviewSandboxes.length > 0 ? 'Force Delete' : 'Delete Host'}
+						{deletePreviewCapsules.length > 0 ? 'Force Delete' : 'Delete Host'}
 					{/if}
 				</button>
 			</div>
diff --git a/internal/api/handlers_exec.go b/internal/api/handlers_exec.go
index 87abf07..f540e31 100644
--- a/internal/api/handlers_exec.go
+++ b/internal/api/handlers_exec.go
@@ -45,7 +45,7 @@ type execResponse struct {
 	Encoding string `json:"encoding"`
 }
 
-// Exec handles POST /v1/sandboxes/{id}/exec.
+// Exec handles POST /v1/capsules/{id}/exec.
 func (h *execHandler) Exec(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ctx := r.Context()
diff --git a/internal/api/handlers_exec_stream.go b/internal/api/handlers_exec_stream.go
index 137885c..ca7fc03 100644
--- a/internal/api/handlers_exec_stream.go
+++ b/internal/api/handlers_exec_stream.go
@@ -47,7 +47,7 @@ type wsOutMsg struct {
 	ExitCode *int32 `json:"exit_code,omitempty"` // only for "exit"
 }
 
-// ExecStream handles WS /v1/sandboxes/{id}/exec/stream.
+// ExecStream handles WS /v1/capsules/{id}/exec/stream.
 func (h *execStreamHandler) ExecStream(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ctx := r.Context()
diff --git a/internal/api/handlers_files.go b/internal/api/handlers_files.go
index 5dd2006..e8cf42d 100644
--- a/internal/api/handlers_files.go
+++ b/internal/api/handlers_files.go
@@ -25,7 +25,7 @@ func newFilesHandler(db *db.Queries, pool *lifecycle.HostClientPool) *filesHandl
 	return &filesHandler{db: db, pool: pool}
 }
 
-// Upload handles POST /v1/sandboxes/{id}/files/write.
+// Upload handles POST /v1/capsules/{id}/files/write.
 // Expects multipart/form-data with:
 //   - "path" text field: absolute destination path inside the sandbox
 //   - "file" file field: binary content to write
@@ -105,7 +105,7 @@ type readFileRequest struct {
 	Path string `json:"path"`
 }
 
-// Download handles POST /v1/sandboxes/{id}/files/read.
+// Download handles POST /v1/capsules/{id}/files/read.
 // Accepts JSON body with path, returns raw file content with Content-Disposition.
 func (h *filesHandler) Download(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
diff --git a/internal/api/handlers_files_stream.go b/internal/api/handlers_files_stream.go
index 99066b4..3fbfa9c 100644
--- a/internal/api/handlers_files_stream.go
+++ b/internal/api/handlers_files_stream.go
@@ -26,7 +26,7 @@ func newFilesStreamHandler(db *db.Queries, pool *lifecycle.HostClientPool) *file
 	return &filesStreamHandler{db: db, pool: pool}
 }
 
-// StreamUpload handles POST /v1/sandboxes/{id}/files/stream/write.
+// StreamUpload handles POST /v1/capsules/{id}/files/stream/write.
 // Expects multipart/form-data with "path" text field and "file" file field.
 // Streams file content directly from the request body to the host agent without buffering.
 func (h *filesStreamHandler) StreamUpload(w http.ResponseWriter, r *http.Request) {
@@ -150,7 +150,7 @@ func (h *filesStreamHandler) StreamUpload(w http.ResponseWriter, r *http.Request
 	w.WriteHeader(http.StatusNoContent)
 }
 
-// StreamDownload handles POST /v1/sandboxes/{id}/files/stream/read.
+// StreamDownload handles POST /v1/capsules/{id}/files/stream/read.
 // Accepts JSON body with path, streams file content back without buffering.
 func (h *filesStreamHandler) StreamDownload(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
diff --git a/internal/api/handlers_fs.go b/internal/api/handlers_fs.go
index 30073c3..ff50013 100644
--- a/internal/api/handlers_fs.go
+++ b/internal/api/handlers_fs.go
@@ -56,7 +56,7 @@ type removeRequest struct {
 	Path string `json:"path"`
 }
 
-// ListDir handles POST /v1/sandboxes/{id}/files/list.
+// ListDir handles POST /v1/capsules/{id}/files/list.
 func (h *fsHandler) ListDir(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ctx := r.Context()
@@ -113,7 +113,7 @@ func (h *fsHandler) ListDir(w http.ResponseWriter, r *http.Request) {
 	writeJSON(w, http.StatusOK, listDirResponse{Entries: entries})
 }
 
-// MakeDir handles POST /v1/sandboxes/{id}/files/mkdir.
+// MakeDir handles POST /v1/capsules/{id}/files/mkdir.
 func (h *fsHandler) MakeDir(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ctx := r.Context()
@@ -164,7 +164,7 @@ func (h *fsHandler) MakeDir(w http.ResponseWriter, r *http.Request) {
 	writeJSON(w, http.StatusOK, makeDirResponse{Entry: fileEntryFromPB(resp.Msg.Entry)})
 }
 
-// Remove handles POST /v1/sandboxes/{id}/files/remove.
+// Remove handles POST /v1/capsules/{id}/files/remove.
 func (h *fsHandler) Remove(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ctx := r.Context()
diff --git a/internal/api/handlers_metrics.go b/internal/api/handlers_metrics.go
index 4d04430..6b49b57 100644
--- a/internal/api/handlers_metrics.go
+++ b/internal/api/handlers_metrics.go
@@ -38,7 +38,7 @@ type metricsResponse struct {
 	Points    []metricPointResponse `json:"points"`
 }
 
-// GetMetrics handles GET /v1/sandboxes/{id}/metrics?range=10m|2h|24h.
+// GetMetrics handles GET /v1/capsules/{id}/metrics?range=10m|2h|24h.
 func (h *sandboxMetricsHandler) GetMetrics(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ctx := r.Context()
diff --git a/internal/api/handlers_pty.go b/internal/api/handlers_pty.go
index 00b2184..6a906b1 100644
--- a/internal/api/handlers_pty.go
+++ b/internal/api/handlers_pty.go
@@ -79,7 +79,7 @@ func (w *wsWriter) writeJSON(v any) {
 	}
 }
 
-// PtySession handles WS /v1/sandboxes/{id}/pty.
+// PtySession handles WS /v1/capsules/{id}/pty.
 func (h *ptyHandler) PtySession(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ctx := r.Context()
diff --git a/internal/api/handlers_sandbox.go b/internal/api/handlers_sandbox.go
index 18d5305..1650720 100644
--- a/internal/api/handlers_sandbox.go
+++ b/internal/api/handlers_sandbox.go
@@ -73,7 +73,7 @@ func sandboxToResponse(sb db.Sandbox) sandboxResponse {
 	return resp
 }
 
-// Create handles POST /v1/sandboxes.
+// Create handles POST /v1/capsules.
 func (h *sandboxHandler) Create(w http.ResponseWriter, r *http.Request) {
 	var req createSandboxRequest
 	if err := json.NewDecoder(r.Body).Decode(&req); err != nil {
@@ -104,7 +104,7 @@ func (h *sandboxHandler) Create(w http.ResponseWriter, r *http.Request) {
 	writeJSON(w, http.StatusCreated, sandboxToResponse(sb))
 }
 
-// List handles GET /v1/sandboxes.
+// List handles GET /v1/capsules.
 func (h *sandboxHandler) List(w http.ResponseWriter, r *http.Request) {
 	ac := auth.MustFromContext(r.Context())
 	sandboxes, err := h.svc.List(r.Context(), ac.TeamID)
@@ -121,7 +121,7 @@ func (h *sandboxHandler) List(w http.ResponseWriter, r *http.Request) {
 	writeJSON(w, http.StatusOK, resp)
 }
 
-// Get handles GET /v1/sandboxes/{id}.
+// Get handles GET /v1/capsules/{id}.
 func (h *sandboxHandler) Get(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ac := auth.MustFromContext(r.Context())
@@ -141,7 +141,7 @@ func (h *sandboxHandler) Get(w http.ResponseWriter, r *http.Request) {
 	writeJSON(w, http.StatusOK, sandboxToResponse(sb))
 }
 
-// Pause handles POST /v1/sandboxes/{id}/pause.
+// Pause handles POST /v1/capsules/{id}/pause.
 func (h *sandboxHandler) Pause(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ac := auth.MustFromContext(r.Context())
@@ -163,7 +163,7 @@ func (h *sandboxHandler) Pause(w http.ResponseWriter, r *http.Request) {
 	writeJSON(w, http.StatusOK, sandboxToResponse(sb))
 }
 
-// Resume handles POST /v1/sandboxes/{id}/resume.
+// Resume handles POST /v1/capsules/{id}/resume.
 func (h *sandboxHandler) Resume(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ac := auth.MustFromContext(r.Context())
@@ -185,7 +185,7 @@ func (h *sandboxHandler) Resume(w http.ResponseWriter, r *http.Request) {
 	writeJSON(w, http.StatusOK, sandboxToResponse(sb))
 }
 
-// Ping handles POST /v1/sandboxes/{id}/ping.
+// Ping handles POST /v1/capsules/{id}/ping.
 func (h *sandboxHandler) Ping(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ac := auth.MustFromContext(r.Context())
@@ -205,7 +205,7 @@ func (h *sandboxHandler) Ping(w http.ResponseWriter, r *http.Request) {
 	w.WriteHeader(http.StatusNoContent)
 }
 
-// Destroy handles DELETE /v1/sandboxes/{id}.
+// Destroy handles DELETE /v1/capsules/{id}.
 func (h *sandboxHandler) Destroy(w http.ResponseWriter, r *http.Request) {
 	sandboxIDStr := chi.URLParam(r, "id")
 	ac := auth.MustFromContext(r.Context())
diff --git a/internal/api/handlers_stats.go b/internal/api/handlers_stats.go
index 6c04c7e..ad2b5f9 100644
--- a/internal/api/handlers_stats.go
+++ b/internal/api/handlers_stats.go
@@ -43,7 +43,7 @@ type statsResponse struct {
 	Series  statsSeriesResponse  `json:"series"`
 }
 
-// GetStats handles GET /v1/sandboxes/stats?range=5m|1h|6h|24h|30d
+// GetStats handles GET /v1/capsules/stats?range=5m|1h|6h|24h|30d
 func (h *statsHandler) GetStats(w http.ResponseWriter, r *http.Request) {
 	ac := auth.MustFromContext(r.Context())
 
diff --git a/internal/api/openapi.yaml b/internal/api/openapi.yaml
index 0b56fe5..b6bd643 100644
--- a/internal/api/openapi.yaml
+++ b/internal/api/openapi.yaml
@@ -1,6 +1,6 @@
 openapi: "3.1.0"
 info:
-  title: Wrenn Sandbox API
+  title: Wrenn API
   description: MicroVM-based code execution platform API.
   version: "0.1.0"
 
@@ -393,7 +393,7 @@ paths:
         - bearerAuth: []
       description: |
         Owner only. Soft-deletes the team and destroys all running/paused/starting
-        sandboxes. All DB records are preserved. The team slug is permanently reserved.
+        capsulees. All DB records are preserved. The team slug is permanently reserved.
       responses:
         "204":
           description: Team deleted
@@ -570,11 +570,11 @@ paths:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes:
+  /v1/capsules:
     post:
-      summary: Create a sandbox
-      operationId: createSandbox
-      tags: [sandboxes]
+      summary: Create a capsule
+      operationId: createCapsule
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       requestBody:
@@ -582,14 +582,14 @@ paths:
         content:
           application/json:
             schema:
-              $ref: "#/components/schemas/CreateSandboxRequest"
+              $ref: "#/components/schemas/CreateCapsuleRequest"
       responses:
         "201":
-          description: Sandbox created
+          description: Capsule created
           content:
             application/json:
               schema:
-                $ref: "#/components/schemas/Sandbox"
+                $ref: "#/components/schemas/Capsule"
         "502":
           description: Host agent error
           content:
@@ -598,26 +598,26 @@ paths:
                 $ref: "#/components/schemas/Error"
 
     get:
-      summary: List sandboxes for your team
-      operationId: listSandboxes
-      tags: [sandboxes]
+      summary: List capsulees for your team
+      operationId: listCapsules
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       responses:
         "200":
-          description: List of sandboxes
+          description: List of capsulees
           content:
             application/json:
               schema:
                 type: array
                 items:
-                  $ref: "#/components/schemas/Sandbox"
+                  $ref: "#/components/schemas/Capsule"
 
-  /v1/sandboxes/stats:
+  /v1/capsules/stats:
     get:
-      summary: Get sandbox usage stats for your team
-      operationId: getSandboxStats
-      tags: [sandboxes]
+      summary: Get capsule usage stats for your team
+      operationId: getCapsuleStats
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       parameters:
@@ -631,15 +631,15 @@ paths:
           description: Time window for the time-series data.
       responses:
         "200":
-          description: Sandbox stats for the team
+          description: Capsule stats for the team
           content:
             application/json:
               schema:
-                $ref: "#/components/schemas/SandboxStats"
+                $ref: "#/components/schemas/CapsuleStats"
         "400":
           $ref: "#/components/responses/BadRequest"
 
-  /v1/sandboxes/{id}:
+  /v1/capsules/{id}:
     parameters:
       - name: id
         in: path
@@ -648,36 +648,36 @@ paths:
           type: string
 
     get:
-      summary: Get sandbox details
-      operationId: getSandbox
-      tags: [sandboxes]
+      summary: Get capsule details
+      operationId: getCapsule
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       responses:
         "200":
-          description: Sandbox details
+          description: Capsule details
           content:
             application/json:
               schema:
-                $ref: "#/components/schemas/Sandbox"
+                $ref: "#/components/schemas/Capsule"
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
     delete:
-      summary: Destroy a sandbox
-      operationId: destroySandbox
-      tags: [sandboxes]
+      summary: Destroy a capsule
+      operationId: destroyCapsule
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       responses:
         "204":
-          description: Sandbox destroyed
+          description: Capsule destroyed
 
-  /v1/sandboxes/{id}/exec:
+  /v1/capsules/{id}/exec:
     parameters:
       - name: id
         in: path
@@ -688,7 +688,7 @@ paths:
     post:
       summary: Execute a command
       operationId: execCommand
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       requestBody:
@@ -705,19 +705,19 @@ paths:
               schema:
                 $ref: "#/components/schemas/ExecResponse"
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/ping:
+  /v1/capsules/{id}/ping:
     parameters:
       - name: id
         in: path
@@ -726,32 +726,32 @@ paths:
           type: string
 
     post:
-      summary: Reset sandbox inactivity timer
-      operationId: pingSandbox
-      tags: [sandboxes]
+      summary: Reset capsule inactivity timer
+      operationId: pingCapsule
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       description: |
-        Resets the last_active_at timestamp for a running sandbox, preventing
-        the auto-pause TTL from expiring. Use this as a keepalive for sandboxes
+        Resets the last_active_at timestamp for a running capsule, preventing
+        the auto-pause TTL from expiring. Use this as a keepalive for capsulees
         that are idle but should remain running.
       responses:
         "204":
           description: Ping acknowledged, inactivity timer reset
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/metrics:
+  /v1/capsules/{id}/metrics:
     parameters:
       - name: id
         in: path
@@ -760,22 +760,22 @@ paths:
           type: string
 
     get:
-      summary: Get per-sandbox resource metrics
-      operationId: getSandboxMetrics
-      tags: [sandboxes]
+      summary: Get per-capsule resource metrics
+      operationId: getCapsuleMetrics
+      tags: [capsules]
       security:
         - apiKeyAuth: []
         - bearerAuth: []
       description: |
-        Returns time-series CPU, memory, and disk metrics for a sandbox.
+        Returns time-series CPU, memory, and disk metrics for a capsule.
         Three tiers are available with different granularity and retention:
         - `10m`: 500ms samples, last 10 minutes
         - `2h`: 30-second averages, last 2 hours
         - `24h`: 5-minute averages, last 24 hours
 
-        For running sandboxes, data comes from the host agent's in-memory
-        ring buffer. For paused sandboxes, data is read from persisted
-        snapshots in the database. Stopped/destroyed sandboxes return 404.
+        For running capsulees, data comes from the host agent's in-memory
+        ring buffer. For paused capsulees, data is read from persisted
+        snapshots in the database. Stopped/destroyed capsulees return 404.
       parameters:
         - name: range
           in: query
@@ -791,7 +791,7 @@ paths:
           content:
             application/json:
               schema:
-                $ref: "#/components/schemas/SandboxMetrics"
+                $ref: "#/components/schemas/CapsuleMetrics"
         "400":
           description: Invalid range parameter
           content:
@@ -799,13 +799,13 @@ paths:
               schema:
                 $ref: "#/components/schemas/Error"
         "404":
-          description: Sandbox not found or metrics not available
+          description: Capsule not found or metrics not available
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/pause:
+  /v1/capsules/{id}/pause:
     parameters:
       - name: id
         in: path
@@ -814,30 +814,30 @@ paths:
           type: string
 
     post:
-      summary: Pause a running sandbox
-      operationId: pauseSandbox
-      tags: [sandboxes]
+      summary: Pause a running capsule
+      operationId: pauseCapsule
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       description: |
-        Takes a snapshot of the sandbox (VM state + memory + rootfs), then
-        destroys all running resources. The sandbox exists only as files on
+        Takes a snapshot of the capsule (VM state + memory + rootfs), then
+        destroys all running resources. The capsule exists only as files on
         disk and can be resumed later.
       responses:
         "200":
-          description: Sandbox paused (snapshot taken, resources released)
+          description: Capsule paused (snapshot taken, resources released)
           content:
             application/json:
               schema:
-                $ref: "#/components/schemas/Sandbox"
+                $ref: "#/components/schemas/Capsule"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/resume:
+  /v1/capsules/{id}/resume:
     parameters:
       - name: id
         in: path
@@ -846,24 +846,24 @@ paths:
           type: string
 
     post:
-      summary: Resume a paused sandbox
-      operationId: resumeSandbox
-      tags: [sandboxes]
+      summary: Resume a paused capsule
+      operationId: resumeCapsule
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       description: |
-        Restores a paused sandbox from its snapshot using UFFD for lazy
+        Restores a paused capsule from its snapshot using UFFD for lazy
         memory loading. Boots a fresh Firecracker process, sets up a new
         network slot, and waits for envd to become ready.
       responses:
         "200":
-          description: Sandbox resumed (new VM booted from snapshot)
+          description: Capsule resumed (new VM booted from snapshot)
           content:
             application/json:
               schema:
-                $ref: "#/components/schemas/Sandbox"
+                $ref: "#/components/schemas/Capsule"
         "409":
-          description: Sandbox not paused
+          description: Capsule not paused
           content:
             application/json:
               schema:
@@ -877,9 +877,9 @@ paths:
       security:
         - apiKeyAuth: []
       description: |
-        Pauses a running sandbox, takes a full snapshot, copies the snapshot
+        Pauses a running capsule, takes a full snapshot, copies the snapshot
         files to the images directory as a reusable template, then destroys
-        the sandbox. The template can be used to create new sandboxes.
+        the capsule. The template can be used to create new capsulees.
       parameters:
         - name: overwrite
           in: query
@@ -902,7 +902,7 @@ paths:
               schema:
                 $ref: "#/components/schemas/Template"
         "409":
-          description: Name already exists or sandbox not running
+          description: Name already exists or capsule not running
           content:
             application/json:
               schema:
@@ -957,7 +957,7 @@ paths:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/files/write:
+  /v1/capsules/{id}/files/write:
     parameters:
       - name: id
         in: path
@@ -968,7 +968,7 @@ paths:
     post:
       summary: Upload a file
       operationId: uploadFile
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       requestBody:
@@ -981,7 +981,7 @@ paths:
               properties:
                 path:
                   type: string
-                  description: Absolute destination path inside the sandbox
+                  description: Absolute destination path inside the capsule
                 file:
                   type: string
                   format: binary
@@ -990,7 +990,7 @@ paths:
         "204":
           description: File uploaded
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
@@ -1002,7 +1002,7 @@ paths:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/files/read:
+  /v1/capsules/{id}/files/read:
     parameters:
       - name: id
         in: path
@@ -1013,7 +1013,7 @@ paths:
     post:
       summary: Download a file
       operationId: downloadFile
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       requestBody:
@@ -1031,13 +1031,13 @@ paths:
                 type: string
                 format: binary
         "404":
-          description: Sandbox or file not found
+          description: Capsule or file not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/files/list:
+  /v1/capsules/{id}/files/list:
     parameters:
       - name: id
         in: path
@@ -1048,7 +1048,7 @@ paths:
     post:
       summary: List directory contents
       operationId: listDir
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       requestBody:
@@ -1065,19 +1065,19 @@ paths:
               schema:
                 $ref: "#/components/schemas/ListDirResponse"
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/files/mkdir:
+  /v1/capsules/{id}/files/mkdir:
     parameters:
       - name: id
         in: path
@@ -1088,7 +1088,7 @@ paths:
     post:
       summary: Create a directory
       operationId: makeDir
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       requestBody:
@@ -1105,19 +1105,19 @@ paths:
               schema:
                 $ref: "#/components/schemas/MakeDirResponse"
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/files/remove:
+  /v1/capsules/{id}/files/remove:
     parameters:
       - name: id
         in: path
@@ -1128,7 +1128,7 @@ paths:
     post:
       summary: Remove a file or directory
       operationId: removePath
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       requestBody:
@@ -1141,19 +1141,19 @@ paths:
         "204":
           description: File or directory removed
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/exec/stream:
+  /v1/capsules/{id}/exec/stream:
     parameters:
       - name: id
         in: path
@@ -1164,7 +1164,7 @@ paths:
     get:
       summary: Stream command execution via WebSocket
       operationId: execStream
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       description: |
@@ -1194,19 +1194,19 @@ paths:
         "101":
           description: WebSocket upgrade
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/pty:
+  /v1/capsules/{id}/pty:
     parameters:
       - name: id
         in: path
@@ -1217,7 +1217,7 @@ paths:
     get:
       summary: Interactive PTY session via WebSocket
       operationId: ptySession
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       description: |
@@ -1266,25 +1266,25 @@ paths:
 
         Sessions have a 120-second inactivity timeout (reset on input/resize).
         Sessions persist across WebSocket disconnections — the process keeps
-        running in the sandbox. Use the `tag` from the "started" response to
+        running in the capsule. Use the `tag` from the "started" response to
         reconnect later.
       responses:
         "101":
           description: WebSocket upgrade
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/files/stream/write:
+  /v1/capsules/{id}/files/stream/write:
     parameters:
       - name: id
         in: path
@@ -1295,11 +1295,11 @@ paths:
     post:
       summary: Upload a file (streaming)
       operationId: streamUploadFile
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       description: |
-        Streams file content to the sandbox without buffering in memory.
+        Streams file content to the capsule without buffering in memory.
         Suitable for large files. Uses the same multipart/form-data format
         as the non-streaming upload endpoint.
       requestBody:
@@ -1312,7 +1312,7 @@ paths:
               properties:
                 path:
                   type: string
-                  description: Absolute destination path inside the sandbox
+                  description: Absolute destination path inside the capsule
                 file:
                   type: string
                   format: binary
@@ -1321,19 +1321,19 @@ paths:
         "204":
           description: File uploaded
         "404":
-          description: Sandbox not found
+          description: Capsule not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
 
-  /v1/sandboxes/{id}/files/stream/read:
+  /v1/capsules/{id}/files/stream/read:
     parameters:
       - name: id
         in: path
@@ -1344,11 +1344,11 @@ paths:
     post:
       summary: Download a file (streaming)
       operationId: streamDownloadFile
-      tags: [sandboxes]
+      tags: [capsules]
       security:
         - apiKeyAuth: []
       description: |
-        Streams file content from the sandbox without buffering in memory.
+        Streams file content from the capsule without buffering in memory.
         Suitable for large files. Returns raw bytes with chunked transfer encoding.
       requestBody:
         required: true
@@ -1365,13 +1365,13 @@ paths:
                 type: string
                 format: binary
         "404":
-          description: Sandbox or file not found
+          description: Capsule or file not found
           content:
             application/json:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Sandbox not running
+          description: Capsule not running
           content:
             application/json:
               schema:
@@ -1469,14 +1469,14 @@ paths:
       description: |
         Admins can delete any host. Team owners and admins can delete BYOC hosts
         belonging to their team. Without `?force=true`, returns 409 if the host
-        has active sandboxes. With `?force=true`, destroys all sandboxes first.
+        has active capsulees. With `?force=true`, destroys all capsulees first.
       parameters:
         - name: force
           in: query
           required: false
           schema:
             type: boolean
-          description: If true, destroy all sandboxes on the host before deleting.
+          description: If true, destroy all capsulees on the host before deleting.
       responses:
         "204":
           description: Host deleted
@@ -1487,11 +1487,11 @@ paths:
               schema:
                 $ref: "#/components/schemas/Error"
         "409":
-          description: Host has active sandboxes (only when force is not set)
+          description: Host has active capsulees (only when force is not set)
           content:
             application/json:
               schema:
-                $ref: "#/components/schemas/HostHasSandboxesError"
+                $ref: "#/components/schemas/HostHasCapsulesError"
 
   /v1/hosts/{id}/token:
     parameters:
@@ -1644,7 +1644,7 @@ paths:
       security:
         - bearerAuth: []
       description: |
-        Returns the list of sandbox IDs that would be destroyed if the host
+        Returns the list of capsule IDs that would be destroyed if the host
         were deleted with `?force=true`. No state is modified.
       responses:
         "200":
@@ -1917,7 +1917,7 @@ components:
       type: apiKey
       in: header
       name: X-API-Key
-      description: API key for sandbox lifecycle operations. Create via POST /v1/api-keys.
+      description: API key for capsule lifecycle operations. Create via POST /v1/api-keys.
 
     bearerAuth:
       type: http
@@ -2002,7 +2002,7 @@ components:
           description: Full plaintext key. Only returned on creation, never again.
           nullable: true
 
-    CreateSandboxRequest:
+    CreateCapsuleRequest:
       type: object
       properties:
         template:
@@ -2018,11 +2018,11 @@ components:
           type: integer
           default: 0
           description: >
-            Auto-pause TTL in seconds. The sandbox is automatically paused
+            Auto-pause TTL in seconds. The capsule is automatically paused
             after this duration of inactivity (no exec or ping). 0 means
             no auto-pause.
 
-    SandboxStats:
+    CapsuleStats:
       type: object
       properties:
         range:
@@ -2073,7 +2073,7 @@ components:
               items:
                 type: integer
 
-    Sandbox:
+    Capsule:
       type: object
       properties:
         id:
@@ -2114,7 +2114,7 @@ components:
       properties:
         sandbox_id:
           type: string
-          description: ID of the running sandbox to snapshot.
+          description: ID of the running capsule to snapshot.
         name:
           type: string
           description: Name for the snapshot template. Auto-generated if omitted.
@@ -2180,7 +2180,7 @@ components:
       properties:
         path:
           type: string
-          description: Absolute file path inside the sandbox
+          description: Absolute file path inside the capsule
 
     ListDirRequest:
       type: object
@@ -2188,7 +2188,7 @@ components:
       properties:
         path:
           type: string
-          description: Directory path inside the sandbox
+          description: Directory path inside the capsule
         depth:
           type: integer
           default: 1
@@ -2238,7 +2238,7 @@ components:
       properties:
         path:
           type: string
-          description: Directory path to create inside the sandbox
+          description: Directory path to create inside the capsule
 
     MakeDirResponse:
       type: object
@@ -2252,7 +2252,7 @@ components:
       properties:
         path:
           type: string
-          description: Path to remove inside the sandbox
+          description: Path to remove inside the capsule
 
     CreateHostRequest:
       type: object
@@ -2390,9 +2390,9 @@ components:
           type: array
           items:
             type: string
-          description: IDs of sandboxes that would be destroyed on force-delete.
+          description: IDs of capsulees that would be destroyed on force-delete.
 
-    HostHasSandboxesError:
+    HostHasCapsulesError:
       type: object
       properties:
         error:
@@ -2407,7 +2407,7 @@ components:
               type: array
               items:
                 type: string
-              description: IDs of active sandboxes blocking deletion.
+              description: IDs of active capsulees blocking deletion.
 
     AddTagRequest:
       type: object
@@ -2471,7 +2471,7 @@ components:
           items:
             $ref: "#/components/schemas/TeamMember"
 
-    SandboxMetrics:
+    CapsuleMetrics:
       type: object
       properties:
         sandbox_id:
diff --git a/internal/api/server.go b/internal/api/server.go
index 9d09b7a..8acc1a0 100644
--- a/internal/api/server.go
+++ b/internal/api/server.go
@@ -116,8 +116,8 @@ func New(
 	// JWT-authenticated: user search (for add-member UI).
 	r.With(requireJWT(jwtSecret)).Get("/v1/users/search", usersH.Search)
 
-	// Sandbox lifecycle: accepts API key or JWT bearer token.
-	r.Route("/v1/sandboxes", func(r chi.Router) {
+	// Capsule lifecycle: accepts API key or JWT bearer token.
+	r.Route("/v1/capsules", func(r chi.Router) {
 		r.Use(requireAPIKeyOrJWT(queries, jwtSecret))
 		r.Post("/", sandbox.Create)
 		r.Get("/", sandbox.List)
@@ -229,7 +229,7 @@ func serveDocs(w http.ResponseWriter, r *http.Request) {
 <head>
   <meta charset="UTF-8">
   <meta name="viewport" content="width=device-width, initial-scale=1.0">
-  <title>Wrenn Sandbox API</title>
+  <title>Wrenn API</title>
   <link rel="stylesheet" href="https://unpkg.com/swagger-ui-dist@5.18.2/swagger-ui.css" integrity="sha384-rcbEi6xgdPk0iWkAQzT2F3FeBJXdG+ydrawGlfHAFIZG7wU6aKbQaRewysYpmrlW" crossorigin="anonymous">
   <style>
     body { margin: 0; background: #fafafa; }