diff --git a/CLAUDE.md b/CLAUDE.md
new file mode 100644
index 00000000..fd56bddd
--- /dev/null
+++ b/CLAUDE.md
@@ -0,0 +1,55 @@
+# React Webpack Rails Tutorial - Development Guide
+
+## Build and Test Commands
+
+```bash
+# Run development server
+bin/dev
+
+# Run tests
+bundle exec rspec
+
+# Run linting
+bundle exec rubocop
+
+# Auto-fix linting issues
+bundle exec rubocop -a
+```
+
+## Conductor Compatibility (Version Managers)
+
+### Problem
+
+Conductor runs commands in a non-interactive shell that doesn't source `.zshrc`. This means version manager shell hooks (like mise's PATH reordering based on `.tool-versions`) never run. Commands will use system Ruby/Node instead of project-specified versions.
+
+**Symptoms:**
+- `ruby --version` returns system Ruby (e.g., 2.6.10) instead of project Ruby (e.g., 3.4.3)
+- Pre-commit hooks fail with wrong tool versions
+- `bundle` commands fail due to incompatible Ruby versions
+- Node/pnpm commands use wrong Node version
+
+### Solution
+
+Use the `bin/conductor-exec` wrapper to ensure commands run with correct tool versions:
+
+```bash
+# Instead of:
+ruby --version
+bundle exec rubocop
+pnpm install
+git commit -m "message"
+
+# Use:
+bin/conductor-exec ruby --version
+bin/conductor-exec bundle exec rubocop
+bin/conductor-exec pnpm install
+bin/conductor-exec git commit -m "message"  # Pre-commit hooks work correctly
+```
+
+The wrapper:
+- Uses `mise exec` when mise is available
+- Falls back to direct execution for non-mise users (asdf, rbenv, nvm, nodenv)
+
+### Reference
+
+See [react_on_rails-demos#105](https://github.com/shakacode/react_on_rails-demos/issues/105) for detailed problem analysis and solution development.
diff --git a/bin/conductor-exec b/bin/conductor-exec
new file mode 100755
index 00000000..02259302
--- /dev/null
+++ b/bin/conductor-exec
@@ -0,0 +1,24 @@
+#!/usr/bin/env zsh
+# Wrapper script to run commands in Conductor with proper tool versions
+# Usage: bin/conductor-exec <command> [args...]
+#
+# This is needed because Conductor (and other non-interactive shells) don't
+# source .zshrc, so version manager PATH configuration isn't active by default.
+#
+# - If mise is available: uses `mise exec` for correct tool versions
+# - Otherwise: falls back to direct execution (for asdf/rbenv/nvm users)
+#
+# Examples:
+#   bin/conductor-exec ruby --version       # Uses correct Ruby version
+#   bin/conductor-exec bundle exec rubocop  # Correct Ruby for linting
+#   bin/conductor-exec git commit -m "msg"  # Pre-commit hooks work correctly
+#   bin/conductor-exec pnpm install         # Uses correct Node version
+#
+# See: https://github.com/shakacode/react_on_rails-demos/issues/105
+
+if command -v mise &> /dev/null; then
+  exec mise exec -- "$@"
+else
+  # Fall back to direct execution for non-mise users
+  exec "$@"
+fi
diff --git a/conductor-setup.sh b/conductor-setup.sh
index cb1fd7b1..b8f880d4 100755
--- a/conductor-setup.sh
+++ b/conductor-setup.sh
@@ -1,30 +1,107 @@
-#!/bin/bash
+#!/bin/zsh
 set -e
 
 echo "🚀 Setting up React on Rails workspace..."
 
+# Detect and initialize version manager
+# Supports: mise, asdf, or direct PATH (rbenv/nvm/nodenv already in PATH)
+VERSION_MANAGER="none"
+
+echo "📋 Detecting version manager..."
+
+if command -v mise &> /dev/null; then
+    VERSION_MANAGER="mise"
+    echo "✅ Found mise"
+    # Trust mise config for current directory only and install tools
+    mise trust 2>/dev/null || true
+    mise install
+elif [[ -f ~/.asdf/asdf.sh ]]; then
+    VERSION_MANAGER="asdf"
+    source ~/.asdf/asdf.sh
+    echo "✅ Found asdf (from ~/.asdf/asdf.sh)"
+elif command -v asdf &> /dev/null; then
+    VERSION_MANAGER="asdf"
+    # For homebrew-installed asdf
+    if [[ -f /opt/homebrew/opt/asdf/libexec/asdf.sh ]]; then
+        source /opt/homebrew/opt/asdf/libexec/asdf.sh
+    fi
+    echo "✅ Found asdf"
+else
+    echo "ℹ️  No version manager detected, using system PATH"
+    echo "   (Assuming rbenv/nvm/nodenv or system tools are already configured)"
+fi
+
+# Helper function to run commands with the detected version manager
+run_cmd() {
+    if [[ "$VERSION_MANAGER" == "mise" ]] && [[ -x "bin/conductor-exec" ]]; then
+        bin/conductor-exec "$@"
+    else
+        "$@"
+    fi
+}
+
 # Note: This project requires Ruby 3.4.6.
 # Please ensure you have the correct Ruby version active before running this script.
 
+# Check required tools
+echo "📋 Checking required tools..."
+run_cmd ruby --version >/dev/null 2>&1 || { echo "❌ Error: Ruby is not installed or not in PATH."; exit 1; }
+run_cmd node --version >/dev/null 2>&1 || { echo "❌ Error: Node.js is not installed or not in PATH."; exit 1; }
+
+# Check Ruby version
+RUBY_VERSION=$(run_cmd ruby -v | awk '{print $2}')
+MIN_RUBY_VERSION="3.0.0"
+if [[ $(echo -e "$MIN_RUBY_VERSION\n$RUBY_VERSION" | sort -V | head -n1) != "$MIN_RUBY_VERSION" ]]; then
+    echo "❌ Error: Ruby version $RUBY_VERSION is too old. This project requires Ruby >= 3.0.0"
+    echo "   Please upgrade Ruby using your version manager or system package manager."
+    exit 1
+fi
+echo "✅ Ruby version: $RUBY_VERSION"
+
+# Check Node version
+NODE_VERSION=$(run_cmd node -v | cut -d'v' -f2)
+MIN_NODE_VERSION="20.0.0"
+if [[ $(echo -e "$MIN_NODE_VERSION\n$NODE_VERSION" | sort -V | head -n1) != "$MIN_NODE_VERSION" ]]; then
+    echo "❌ Error: Node.js version v$NODE_VERSION is too old. This project requires Node.js >= 20.0.0"
+    echo "   Please upgrade Node.js using your version manager or system package manager."
+    exit 1
+fi
+echo "✅ Node.js version: v$NODE_VERSION"
+
 # Copy environment files if they exist in the root
-if [ -f "$CONDUCTOR_ROOT_PATH/.env" ]; then
+if [[ -f "$CONDUCTOR_ROOT_PATH/.env" ]]; then
     cp "$CONDUCTOR_ROOT_PATH/.env" .env
     echo "✅ Copied .env file from root"
-elif [ -f "$CONDUCTOR_ROOT_PATH/.env.example" ]; then
+elif [[ -f "$CONDUCTOR_ROOT_PATH/.env.example" ]]; then
     cp "$CONDUCTOR_ROOT_PATH/.env.example" .env
     echo "✅ Copied .env.example to .env"
 fi
 
-if [ -f "$CONDUCTOR_ROOT_PATH/config/database.yml" ]; then
+if [[ -f "$CONDUCTOR_ROOT_PATH/.env.local" ]]; then
+    cp "$CONDUCTOR_ROOT_PATH/.env.local" .env.local
+    echo "✅ Copied .env.local file from root"
+fi
+
+if [[ -f "$CONDUCTOR_ROOT_PATH/config/database.yml" ]]; then
     cp "$CONDUCTOR_ROOT_PATH/config/database.yml" config/database.yml
     echo "✅ Copied database.yml from root"
-elif [ -f "config/database.yml.example" ]; then
+elif [[ -f "config/database.yml.example" ]]; then
     cp config/database.yml.example config/database.yml
     echo "✅ Copied database.yml.example to database.yml"
 fi
 
 # Run the standard Rails setup script
 echo "🔧 Running Rails setup script..."
-bin/setup --skip-server
+run_cmd bin/setup --skip-server
 
-echo "✨ Setup complete! You can now run the development server."
+echo "✨ Setup complete!"
+echo ""
+echo "📚 Key commands:"
+echo "  • bin/dev - Start development server"
+echo "  • bundle exec rspec - Run tests"
+echo "  • bundle exec rubocop - Run Ruby linting"
+echo ""
+if [[ "$VERSION_MANAGER" == "mise" ]]; then
+    echo "💡 Tip: Use 'bin/conductor-exec <command>' if tool versions aren't detected correctly."
+fi
+echo "⚠️ Remember: Always run 'bundle exec rubocop' before committing!"
diff --git a/conductor.json b/conductor.json
index f883f6ac..0e5ad2a9 100644
--- a/conductor.json
+++ b/conductor.json
@@ -1,7 +1,9 @@
 {
   "scripts": {
     "setup": "./conductor-setup.sh",
-    "run": "bin/dev",
+    "run": "bin/conductor-exec bin/dev",
+    "test": "bin/conductor-exec bundle exec rspec",
+    "lint": "bin/conductor-exec bundle exec rubocop",
     "archive": ""
   },
   "runScriptMode": "nonconcurrent"