diff --git a/lib/App/Yath2/Command/test.pm b/lib/App/Yath2/Command/test.pm
index 14578da91..16078c635 100644
--- a/lib/App/Yath2/Command/test.pm
+++ b/lib/App/Yath2/Command/test.pm
@@ -12,11 +12,13 @@ use Object::HashBase qw{
     <plugins
 };
 
+use Cwd ();
 use File::Path qw/remove_tree/;
 use File::Spec();
 use POSIX qw/strftime/;
 use Time::HiRes qw/sleep/;
 
+use App::Yath2 ();
 use Test2::Harness2();
 use Test2::Harness2::TestFile();
 use Test2::Harness2::Resource::JobCount();
@@ -111,6 +113,50 @@ sub run {
 
     die "No test files matched extensions (@ext) under: @$args\n" unless @files;
 
+    # Build T2_HARNESS_INCLUDES for test children: app path first, then the
+    # user's -I paths (settings->tests->includes, already resolved), then the
+    # default lib/blib directories (on by default, disabled by --no-lib /
+    # --no-blib).  Paths are absolutised relative to the current working
+    # directory so they remain valid regardless of the RunService's CWD.
+    #
+    # We PREPEND to any T2_HARNESS_INCLUDES value already set in the
+    # environment (e.g. /foo;/bar;/baz from nested_includes.t) so caller-
+    # injected paths survive but the tester's full @INC dump (added by
+    # App::Yath2::Tester for its own yath-subprocess setup) ends up after
+    # our ordered prefix.
+    {
+        my $cwd = Cwd::getcwd();
+        my @new_inc;
+
+        push @new_inc, App::Yath2->app_path;
+
+        if (eval { $settings->can('check_group') && $settings->check_group('tests') }) {
+            my $ts = $settings->tests;
+            for my $path (@{$ts->includes // []}) {
+                push @new_inc, File::Spec->rel2abs($path, $cwd);
+            }
+            unless (defined($ts->lib) && !$ts->lib) {
+                push @new_inc, File::Spec->catdir($cwd, 'lib');
+            }
+            unless (defined($ts->blib) && !$ts->blib) {
+                push @new_inc, File::Spec->catdir($cwd, 'blib', 'lib');
+                push @new_inc, File::Spec->catdir($cwd, 'blib', 'arch');
+            }
+        }
+
+        my %seen;
+        my @all_inc;
+        for my $p (@new_inc) {
+            push @all_inc, $p unless $seen{$p}++;
+        }
+        if (my $existing = $ENV{T2_HARNESS_INCLUDES}) {
+            for my $p (grep { length && $_ ne '.' } split /;/, $existing) {
+                push @all_inc, $p unless $seen{$p}++;
+            }
+        }
+        $ENV{T2_HARNESS_INCLUDES} = join ';', @all_inc;
+    }
+
     my $workdir = $settings->workspace->workdir;
 
     my $spawn = Test2::Harness2->spawn(
diff --git a/lib/Test2/Harness2/RunService.pm b/lib/Test2/Harness2/RunService.pm
index bbe1f15ab..f44c8d0b8 100644
--- a/lib/Test2/Harness2/RunService.pm
+++ b/lib/Test2/Harness2/RunService.pm
@@ -189,13 +189,23 @@ sub request_handler_launch_job {
     return {ok => 0, error => "'test_file' must be absolute"}
         unless $test_file_abs =~ m{^/};
 
+    # Parse the test file to detect non-perl scripts (shell scripts, etc.)
+    # via their shebang line. We need this before building the launch command
+    # so we can decide whether to use -I flags or PERL5LIB.
+    require Test2::Harness2::TestFile;
+    my $test_file_spec = Test2::Harness2::TestFile->new(file => $test_file_abs);
+    $test_file_spec->scan;
+
     # The harness's synthetic-skip / synthetic-fail paths hand us an
     # explicit launch command (perl -e '...'). Default to running the
-    # real test file when no override is present. When the launch
-    # payload's env carries T2_HARNESS_INCLUDES (forwarded by
-    # Test2::Harness2::_launch_job), turn it into -I flags so the
-    # child's @INC actually picks the paths up -- the env var alone
-    # is not enough since exec(perl ...) starts a fresh interpreter.
+    # real test file when no override is present.
+    #
+    # T2_HARNESS_INCLUDES (forwarded by Test2::Harness2::_launch_job and
+    # populated by Command::test from the user's -I/--lib/--blib options)
+    # carries the correct include paths for test children. We convert these
+    # to -I flags for perl scripts, or to PERL5LIB for non-perl scripts
+    # (shell wrappers that re-exec perl).
+    my %extra_env;
     if (!defined $launch_cmd) {
         my @extra_inc;
         if (my $payload_env = $payload->{env}) {
@@ -203,7 +213,31 @@ sub request_handler_launch_job {
             @extra_inc = grep { length && $_ ne '.' } split /;/, $inc
                 if defined $inc && length $inc;
         }
-        $launch_cmd = [$^X, (map { "-I$_" } @extra_inc), '-Ilib', $test_file_abs];
+
+        if ($test_file_spec->non_perl) {
+            # Non-perl scripts (e.g. shell wrappers that exec perl): pass
+            # include paths via PERL5LIB so the re-execed perl sees them.
+            # Do not use -I flags — they would be forwarded by perl to the
+            # shebang interpreter (e.g. bash), which does not understand them.
+            # Always include 'lib' so harness internals (e.g. Stream2
+            # formatter) are reachable even when T2_HARNESS_INCLUDES is unset.
+            my $sep = $^O eq 'MSWin32' ? ';' : ':';
+            my $new_perl5lib = join $sep, @extra_inc, 'lib';
+            if (my $existing = $ENV{PERL5LIB}) {
+                $new_perl5lib .= "$sep$existing";
+            }
+            $extra_env{PERL5LIB} = $new_perl5lib;
+            # Run the script directly; the OS kernel handles the shebang.
+            $launch_cmd = [$test_file_abs];
+        }
+        else {
+            # Perl scripts: inject include paths as -I flags on the command
+            # line. This sets @INC before any module is loaded, which is
+            # required because exec() starts a fresh interpreter.
+            # Always include -Ilib so harness internals (e.g. Stream2
+            # formatter) are reachable even when T2_HARNESS_INCLUDES is unset.
+            $launch_cmd = [$^X, (map { "-I$_" } @extra_inc), '-Ilib', $test_file_abs];
+        }
     }
 
     # Default the payload-level log_file only if the caller wants one;
@@ -218,8 +252,6 @@ sub request_handler_launch_job {
     # test_file path so the resulting .json includes the relative
     # and absolute test-file paths. Callers that supply their own
     # spec are left alone.
-    require Test2::Harness2::TestFile;
-    my $test_file_spec = Test2::Harness2::TestFile->new(file => $test_file_abs);
 
     my @logger_specs = map { _maybe_inject_test_file_spec($_, $test_file_spec) } @$payload_loggers;
 
@@ -230,7 +262,7 @@ sub request_handler_launch_job {
             launch       => $launch_cmd,
             new_pgroup   => 1,
             parent_pids  => [$$],
-            env_vars     => {T2_FORMATTER => 'Stream2', %$env},
+            env_vars     => {T2_FORMATTER => 'Stream2', %$env, %extra_env},
             logdir       => $self->{+LOGDIR},
             run_id       => $run_id,
             job_id       => $job_id,
diff --git a/t/Yath/integration/concurrency.t b/t/Yath/integration/concurrency.t
index 28a494e9d..327d02f9a 100644
--- a/t/Yath/integration/concurrency.t
+++ b/t/Yath/integration/concurrency.t
@@ -1,6 +1,6 @@
 # HARNESS-CONFLICTS YATH
 use Test2::V0;
-plan skip_all => "TODO: job concurrency scheduling not validated yet against current scheduler";
+plan skip_all => "TODO: test uses \$log->poll() (JSONL API) but log=>1 now returns a workdir; needs rewrite to use App::Yath2::LogArchive for job event ordering assertions";
 __END__
 
 use Test2::V0;
diff --git a/t/Yath/integration/includes.t b/t/Yath/integration/includes.t
index 9cdba6eb9..d1d17ae8f 100644
--- a/t/Yath/integration/includes.t
+++ b/t/Yath/integration/includes.t
@@ -1,8 +1,4 @@
 # HARNESS-CONFLICTS YATH
-use Test2::V0;
-plan skip_all => "TODO: -I/--unsafe-inc include handling not aligned with current command::test";
-__END__
-
 use Test2::V0;
 use IPC::Cmd qw/can_run/;
 
diff --git a/t/Yath/integration/includes/.yath.rc b/t/Yath/integration/includes/.yath.v2.rc
similarity index 100%
rename from t/Yath/integration/includes/.yath.rc
rename to t/Yath/integration/includes/.yath.v2.rc
diff --git a/t/Yath/integration/projects.t b/t/Yath/integration/projects.t
index 3d233bbd4..7f227f470 100644
--- a/t/Yath/integration/projects.t
+++ b/t/Yath/integration/projects.t
@@ -1,6 +1,6 @@
 # HARNESS-CONFLICTS YATH
 use Test2::V0;
-plan skip_all => "TODO: projects command output not aligned with current renderer";
+plan skip_all => "TODO: App::Yath2::Command::projects needs run() override — inherits test's guard that requires explicit args, no CWD fallback";
 __END__
 
 use Test2::V0;
diff --git a/t/Yath/integration/signals.t b/t/Yath/integration/signals.t
index b059c5404..c4b0c8413 100644
--- a/t/Yath/integration/signals.t
+++ b/t/Yath/integration/signals.t
@@ -1,8 +1,4 @@
 # HARNESS-CONFLICTS YATH
-use Test2::V0;
-plan skip_all => "TODO: signal handling under nested yath not aligned with current Streamer (AUTHOR_TESTING bypasses old gate)";
-__END__
-
 use Test2::V0;
 use Test2::Require::AuthorTesting;
 
diff --git a/t/Yath/integration/smoke.t b/t/Yath/integration/smoke.t
index 3db10035b..be6f77d13 100644
--- a/t/Yath/integration/smoke.t
+++ b/t/Yath/integration/smoke.t
@@ -1,6 +1,6 @@
 # HARNESS-CONFLICTS YATH
 use Test2::V0;
-plan skip_all => "TODO: plugin loading (-p+SmokePlugin) and -D dev-libs not aligned";
+plan skip_all => "TODO: test uses \$log->poll() (JSONL API) but log=>1 now returns a workdir; needs rewrite to use App::Yath2::LogArchive for event iteration";
 __END__
 
 use Test2::V0;
diff --git a/t/Yath/integration/stamps.t b/t/Yath/integration/stamps.t
index 3c6164634..1031f4243 100644
--- a/t/Yath/integration/stamps.t
+++ b/t/Yath/integration/stamps.t
@@ -1,6 +1,6 @@
 # HARNESS-CONFLICTS YATH
 use Test2::V0;
-plan skip_all => "TODO: plugin loading and event timestamp rendering not aligned";
+plan skip_all => "TODO: test uses \$log->poll() (JSONL API) but log=>1 now returns a workdir; needs rewrite to App::Yath2::LogArchive; also --no-plugins flag not yet implemented";
 __END__
 
 use Test2::V0;