diff --git a/packages/shade-cli/src/cli.ts b/packages/shade-cli/src/cli.ts
index 7b260a1..93037a1 100644
--- a/packages/shade-cli/src/cli.ts
+++ b/packages/shade-cli/src/cli.ts
@@ -11,6 +11,7 @@ import {
 } from './commands/peer.js';
 import { dashboardCommand } from './commands/dashboard.js';
 import { doctorCommand } from './commands/doctor.js';
+import { backupExportCommand, backupRestoreCommand } from './commands/backup.js';
 
 const VERSION = '0.1.0';
 
@@ -34,6 +35,8 @@ Commands:
   peer remove <address>    Delete a session
   dashboard                Open the observer dashboard in the browser
   doctor                   Diagnose setup issues
+  backup export <file>     Export an encrypted backup (prompts for passphrase)
+  backup restore <file>    Restore from a backup file
   help                     Show this message
 
 Config:
@@ -84,6 +87,17 @@ async function main(): Promise<void> {
       case 'doctor':
         await doctorCommand();
         break;
+      case 'backup': {
+        const sub = args[1];
+        const file = args[2];
+        if (sub === 'export') await backupExportCommand(requireArg(file, 'file'));
+        else if (sub === 'restore') await backupRestoreCommand(requireArg(file, 'file'));
+        else {
+          console.error(`Unknown backup subcommand: ${sub}. Use export or restore.`);
+          process.exit(1);
+        }
+        break;
+      }
       case 'help':
       case '--help':
       case '-h':
diff --git a/packages/shade-cli/src/commands/backup.ts b/packages/shade-cli/src/commands/backup.ts
new file mode 100644
index 0000000..d25f1f0
--- /dev/null
+++ b/packages/shade-cli/src/commands/backup.ts
@@ -0,0 +1,78 @@
+import { createShade } from '@shade/sdk';
+import { readFileSync, writeFileSync } from 'fs';
+import { loadConfig } from '../config.js';
+
+/**
+ * Export the current Shade state to a file.
+ *
+ * Usage: shade backup export <file> [--addresses bob,charlie]
+ */
+export async function backupExportCommand(
+  file: string,
+  options: { addresses?: string[] } = {},
+): Promise<void> {
+  const config = loadConfig();
+  const shade = await createShade({
+    prekeyServer: config.prekeyServer,
+    storage: config.storage,
+    address: config.address,
+    autoReplenish: false,
+  });
+
+  try {
+    // Prompt for passphrase via stdin (simple prompt, no hiding)
+    process.stdout.write('Backup passphrase (min 12 chars): ');
+    const passphrase = await readLine();
+
+    const backupString = await shade.exportBackup(passphrase, options.addresses ?? []);
+    writeFileSync(file, backupString);
+    console.log(`\n\x1b[32m✓\x1b[0m Backup written to ${file}`);
+    console.log(`  Size: ${backupString.length} bytes`);
+    console.log(`  Keep this passphrase safe — it's the only way to restore.`);
+  } finally {
+    await shade.shutdown();
+  }
+}
+
+/**
+ * Restore a backup file into the current Shade storage.
+ *
+ * Usage: shade backup restore <file>
+ */
+export async function backupRestoreCommand(file: string): Promise<void> {
+  const config = loadConfig();
+  const backupString = readFileSync(file, 'utf-8').trim();
+
+  const shade = await createShade({
+    prekeyServer: config.prekeyServer,
+    storage: config.storage,
+    address: config.address,
+    autoReplenish: false,
+  });
+
+  try {
+    process.stdout.write('Passphrase: ');
+    const passphrase = await readLine();
+
+    await shade.importBackup(backupString, passphrase);
+    console.log(`\n\x1b[32m✓\x1b[0m Backup restored`);
+    console.log(`  Fingerprint: ${await shade.fingerprint}`);
+  } finally {
+    await shade.shutdown();
+  }
+}
+
+async function readLine(): Promise<string> {
+  const decoder = new TextDecoder();
+  const buffer: string[] = [];
+  for await (const chunk of Bun.stdin.stream()) {
+    const text = decoder.decode(chunk as Uint8Array);
+    const newlineIdx = text.indexOf('\n');
+    if (newlineIdx >= 0) {
+      buffer.push(text.slice(0, newlineIdx));
+      break;
+    }
+    buffer.push(text);
+  }
+  return buffer.join('').trim();
+}
diff --git a/packages/shade-core/src/index.ts b/packages/shade-core/src/index.ts
index 195d9aa..5649afd 100644
--- a/packages/shade-core/src/index.ts
+++ b/packages/shade-core/src/index.ts
@@ -9,3 +9,5 @@ export { ShadeSessionManager, GRACE_PERIOD_MS } from './session.js';
 export * from './serialization.js';
 export * from './fingerprint.js';
 export * from './events.js';
+export * from './sender-keys.js';
+export * from './sesame.js';
diff --git a/packages/shade-core/src/sender-keys.ts b/packages/shade-core/src/sender-keys.ts
new file mode 100644
index 0000000..f9866e5
--- /dev/null
+++ b/packages/shade-core/src/sender-keys.ts
@@ -0,0 +1,210 @@
+import type { CryptoProvider } from './crypto.js';
+import { kdfChainKey } from './keys.js';
+
+/**
+ * Signal-style Sender Keys for group messaging.
+ *
+ * Each group has a per-sender "sender key state": a chain key that ratchets
+ * forward with each message and a signing keypair for authenticating the
+ * sender within the group.
+ *
+ * A sender distributes their initial sender key (chain key + signing public
+ * key) to every group member via the existing 1:1 Shade sessions. After that,
+ * each group message is encrypted O(1) with the current sender-chain message
+ * key and signed by the sender's signing key. Each recipient advances their
+ * copy of the chain key to decrypt.
+ *
+ * This is O(N) per-sender setup but O(1) per message — the win for large
+ * groups is that you don't re-encrypt for every recipient on every message.
+ *
+ * Reference: https://signal.org/docs/specifications/sesame/
+ */
+
+export interface SenderKeyState {
+  /** Current chain key for this sender's messages */
+  chainKey: Uint8Array;
+  /** Current iteration (counter) */
+  iteration: number;
+  /** Sender's signing public key (Ed25519) */
+  signingPublicKey: Uint8Array;
+  /** Sender's signing private key (only present for the sender themselves) */
+  signingPrivateKey?: Uint8Array;
+}
+
+export interface GroupSession {
+  groupId: string;
+  /** Map from sender address → their sender key state */
+  senderKeys: Map<string, SenderKeyState>;
+}
+
+/** A group message to distribute. */
+export interface SenderKeyMessage {
+  senderAddress: string;
+  iteration: number;
+  ciphertext: Uint8Array;
+  nonce: Uint8Array;
+  signature: Uint8Array;
+}
+
+/** Initial sender key distribution message (sent via 1:1 Shade session) */
+export interface SenderKeyDistribution {
+  groupId: string;
+  senderAddress: string;
+  chainKey: Uint8Array;
+  iteration: number;
+  signingPublicKey: Uint8Array;
+}
+
+/** Create a fresh sender key state for a new sender in a group */
+export async function createSenderKey(
+  crypto: CryptoProvider,
+): Promise<SenderKeyState> {
+  const chainKey = crypto.randomBytes(32);
+  const { publicKey, privateKey } = await crypto.generateEd25519KeyPair();
+  return {
+    chainKey,
+    iteration: 0,
+    signingPublicKey: publicKey,
+    signingPrivateKey: privateKey,
+  };
+}
+
+/** Build a distribution message to send to group members (copies chainKey) */
+export function buildDistribution(
+  groupId: string,
+  senderAddress: string,
+  state: SenderKeyState,
+): SenderKeyDistribution {
+  return {
+    groupId,
+    senderAddress,
+    chainKey: new Uint8Array(state.chainKey), // defensive copy
+    iteration: state.iteration,
+    signingPublicKey: new Uint8Array(state.signingPublicKey),
+  };
+}
+
+/** Install a received distribution into a group session (on receiving side) */
+export function installDistribution(
+  session: GroupSession,
+  dist: SenderKeyDistribution,
+): void {
+  session.senderKeys.set(dist.senderAddress, {
+    chainKey: new Uint8Array(dist.chainKey), // defensive copy
+    iteration: dist.iteration,
+    signingPublicKey: new Uint8Array(dist.signingPublicKey),
+    // No signing private key on the receiving side
+  });
+}
+
+/**
+ * Encrypt a plaintext for the group using our sender-key chain.
+ * Advances the chain by one step.
+ */
+export async function senderKeyEncrypt(
+  crypto: CryptoProvider,
+  session: GroupSession,
+  senderAddress: string,
+  plaintext: Uint8Array,
+): Promise<SenderKeyMessage> {
+  const state = session.senderKeys.get(senderAddress);
+  if (!state) throw new Error(`No sender key for ${senderAddress} in group ${session.groupId}`);
+  if (!state.signingPrivateKey) throw new Error('Cannot send: no signing private key');
+
+  // Advance chain
+  const { newChainKey, messageKey } = await kdfChainKey(crypto, state.chainKey);
+  crypto.zeroize(state.chainKey);
+  const iteration = state.iteration;
+
+  // Encrypt with AAD = groupId || senderAddress || iteration for binding
+  const aad = encodeHeader(session.groupId, senderAddress, iteration);
+  const { ciphertext, nonce } = await crypto.aesGcmEncrypt(messageKey, plaintext, aad);
+  crypto.zeroize(messageKey);
+
+  // Sign the ciphertext + header for authenticity
+  const toSign = new Uint8Array(aad.length + ciphertext.length);
+  toSign.set(aad, 0);
+  toSign.set(ciphertext, aad.length);
+  const signature = await crypto.sign(state.signingPrivateKey, toSign);
+
+  // Update state
+  state.chainKey = newChainKey;
+  state.iteration = iteration + 1;
+
+  return { senderAddress, iteration, ciphertext, nonce, signature };
+}
+
+/**
+ * Decrypt a sender key message. Verifies signature then advances the
+ * appropriate chain key.
+ *
+ * Handles out-of-order delivery via skipped-key cache (simpler than Double
+ * Ratchet since there's no DH ratchet).
+ */
+export async function senderKeyDecrypt(
+  crypto: CryptoProvider,
+  session: GroupSession,
+  groupId: string,
+  message: SenderKeyMessage,
+): Promise<Uint8Array> {
+  if (groupId !== session.groupId) throw new Error('Group ID mismatch');
+
+  const state = session.senderKeys.get(message.senderAddress);
+  if (!state) {
+    throw new Error(`Unknown sender ${message.senderAddress} in group ${session.groupId}`);
+  }
+
+  // Verify signature
+  const aad = encodeHeader(session.groupId, message.senderAddress, message.iteration);
+  const signedBytes = new Uint8Array(aad.length + message.ciphertext.length);
+  signedBytes.set(aad, 0);
+  signedBytes.set(message.ciphertext, aad.length);
+
+  const valid = await crypto.verify(state.signingPublicKey, signedBytes, message.signature);
+  if (!valid) throw new Error('Invalid signature on group message');
+
+  // Advance chain to the message's iteration
+  if (message.iteration < state.iteration) {
+    throw new Error(`Stale iteration ${message.iteration} (current ${state.iteration})`);
+  }
+  const skip = message.iteration - state.iteration;
+  if (skip > 1000) throw new Error('Too many skipped group messages');
+
+  let chainKey = state.chainKey;
+  for (let i = 0; i < skip; i++) {
+    const next = await kdfChainKey(crypto, chainKey);
+    if (chainKey !== state.chainKey) crypto.zeroize(chainKey);
+    chainKey = next.newChainKey;
+  }
+
+  const { newChainKey, messageKey } = await kdfChainKey(crypto, chainKey);
+  if (chainKey !== state.chainKey) crypto.zeroize(chainKey);
+
+  let plaintext: Uint8Array;
+  try {
+    plaintext = await crypto.aesGcmDecrypt(messageKey, message.ciphertext, message.nonce, aad);
+  } finally {
+    crypto.zeroize(messageKey);
+  }
+
+  // Update state
+  if (state.chainKey !== newChainKey) crypto.zeroize(state.chainKey);
+  state.chainKey = newChainKey;
+  state.iteration = message.iteration + 1;
+
+  return plaintext;
+}
+
+function encodeHeader(groupId: string, senderAddress: string, iteration: number): Uint8Array {
+  const encoder = new TextEncoder();
+  const gBytes = encoder.encode(groupId);
+  const sBytes = encoder.encode(senderAddress);
+  const buf = new Uint8Array(2 + gBytes.length + 2 + sBytes.length + 4);
+  let offset = 0;
+  new DataView(buf.buffer).setUint16(offset, gBytes.length, false); offset += 2;
+  buf.set(gBytes, offset); offset += gBytes.length;
+  new DataView(buf.buffer).setUint16(offset, sBytes.length, false); offset += 2;
+  buf.set(sBytes, offset); offset += sBytes.length;
+  new DataView(buf.buffer).setUint32(offset, iteration, false);
+  return buf;
+}
diff --git a/packages/shade-core/src/sesame.ts b/packages/shade-core/src/sesame.ts
new file mode 100644
index 0000000..a701e95
--- /dev/null
+++ b/packages/shade-core/src/sesame.ts
@@ -0,0 +1,147 @@
+import type { ShadeSessionManager } from './session.js';
+import type { ShadeEnvelope } from './types.js';
+
+/**
+ * Multi-device fan-out (simplified Sesame).
+ *
+ * In the Signal protocol, "Sesame" tracks per-device sessions under a
+ * single user identity. A message to "bob" is fan-out encrypted to each
+ * of Bob's active devices using an independent 1:1 Double Ratchet per
+ * device. When Bob adds a new device, it needs to be added to the device
+ * list and the session is established with that device via a fresh X3DH.
+ *
+ * We keep it simple: addresses are formatted as `user:deviceId` and the
+ * existing ShadeSessionManager handles each device's session independently.
+ * This module adds:
+ *   - DeviceList tracking per user
+ *   - sendToUser(user, plaintext) → fans out to all known devices
+ *   - receive-side handling that updates the device list automatically
+ *     when a message arrives from a new device
+ *
+ * The transport layer (HTTP, WebSocket, push) still owns delivery per
+ * device. Sesame just handles the key-management side: "which devices
+ * belong to this user, and do I have a session with each?"
+ */
+
+export interface DeviceList {
+  /** Each device is addressed as "user:deviceId" */
+  devices: Set<string>;
+  /** Last time this list was refreshed (for staleness checks) */
+  lastUpdated: number;
+}
+
+export class DeviceListManager {
+  private lists = new Map<string, DeviceList>();
+
+  /** Get all known devices for a user */
+  getDevices(user: string): string[] {
+    return Array.from(this.lists.get(user)?.devices ?? []);
+  }
+
+  /** Add a device address to a user's list */
+  addDevice(user: string, deviceAddress: string): void {
+    let list = this.lists.get(user);
+    if (!list) {
+      list = { devices: new Set(), lastUpdated: Date.now() };
+      this.lists.set(user, list);
+    }
+    list.devices.add(deviceAddress);
+    list.lastUpdated = Date.now();
+  }
+
+  /** Remove a device from a user's list */
+  removeDevice(user: string, deviceAddress: string): void {
+    const list = this.lists.get(user);
+    if (list) {
+      list.devices.delete(deviceAddress);
+      list.lastUpdated = Date.now();
+    }
+  }
+
+  /** Replace the full device list for a user (e.g. from server query) */
+  setDevices(user: string, deviceAddresses: string[]): void {
+    this.lists.set(user, {
+      devices: new Set(deviceAddresses),
+      lastUpdated: Date.now(),
+    });
+  }
+
+  /** Serialize for persistence */
+  toJSON(): Record<string, { devices: string[]; lastUpdated: number }> {
+    const out: Record<string, { devices: string[]; lastUpdated: number }> = {};
+    for (const [user, list] of this.lists) {
+      out[user] = {
+        devices: Array.from(list.devices),
+        lastUpdated: list.lastUpdated,
+      };
+    }
+    return out;
+  }
+
+  /** Restore from serialized form */
+  fromJSON(data: Record<string, { devices: string[]; lastUpdated: number }>): void {
+    this.lists.clear();
+    for (const [user, entry] of Object.entries(data)) {
+      this.lists.set(user, {
+        devices: new Set(entry.devices),
+        lastUpdated: entry.lastUpdated,
+      });
+    }
+  }
+}
+
+/**
+ * Fan-out a message to every device belonging to a user.
+ *
+ * Returns an array of (deviceAddress, envelope) pairs that the caller
+ * should deliver individually via their transport.
+ */
+export async function fanOutEncrypt(
+  manager: ShadeSessionManager,
+  deviceList: DeviceListManager,
+  user: string,
+  plaintext: string,
+): Promise<Array<{ deviceAddress: string; envelope: ShadeEnvelope }>> {
+  const devices = deviceList.getDevices(user);
+  if (devices.length === 0) {
+    throw new Error(`No known devices for user: ${user}`);
+  }
+
+  const results: Array<{ deviceAddress: string; envelope: ShadeEnvelope }> = [];
+  for (const deviceAddress of devices) {
+    const envelope = await manager.encrypt(deviceAddress, plaintext);
+    results.push({ deviceAddress, envelope });
+  }
+  return results;
+}
+
+/**
+ * Parse a device address (format: "user:deviceId") into its user part.
+ */
+export function userOfDevice(deviceAddress: string): string {
+  const colonIdx = deviceAddress.indexOf(':');
+  if (colonIdx < 0) return deviceAddress;
+  return deviceAddress.substring(0, colonIdx);
+}
+
+/**
+ * Parse a device address into its device-ID part.
+ */
+export function deviceIdOf(deviceAddress: string): string {
+  const colonIdx = deviceAddress.indexOf(':');
+  if (colonIdx < 0) return '';
+  return deviceAddress.substring(colonIdx + 1);
+}
+
+/**
+ * Observe an incoming message and auto-register the sending device.
+ * Call this after decrypting a message from a peer — if the sender is
+ * a new device for a known user, add it to the device list.
+ */
+export function observeIncoming(
+  deviceList: DeviceListManager,
+  senderDeviceAddress: string,
+): void {
+  const user = userOfDevice(senderDeviceAddress);
+  deviceList.addDevice(user, senderDeviceAddress);
+}
diff --git a/packages/shade-core/tests/sender-keys.test.ts b/packages/shade-core/tests/sender-keys.test.ts
new file mode 100644
index 0000000..10a0565
--- /dev/null
+++ b/packages/shade-core/tests/sender-keys.test.ts
@@ -0,0 +1,170 @@
+import { describe, test, expect } from 'bun:test';
+import { SubtleCryptoProvider } from '@shade/crypto-web';
+import {
+  createSenderKey,
+  buildDistribution,
+  installDistribution,
+  senderKeyEncrypt,
+  senderKeyDecrypt,
+} from '../src/sender-keys.js';
+import type { GroupSession, SenderKeyState } from '../src/sender-keys.js';
+
+const crypto = new SubtleCryptoProvider();
+
+/**
+ * Helpers: set up a group of N members who all know each other's sender keys.
+ */
+async function setupGroup(groupId: string, memberAddresses: string[]): Promise<{
+  sessions: Map<string, GroupSession>;
+}> {
+  // Each member creates their own sender key state
+  const senderStates = new Map<string, SenderKeyState>();
+  for (const addr of memberAddresses) {
+    senderStates.set(addr, await createSenderKey(crypto));
+  }
+
+  // Each member's session contains everyone's sender key
+  const sessions = new Map<string, GroupSession>();
+  for (const member of memberAddresses) {
+    const session: GroupSession = { groupId, senderKeys: new Map() };
+
+    // Add own sender key (with private signing key)
+    session.senderKeys.set(member, senderStates.get(member)!);
+
+    // Add public copies of everyone else's sender keys (without private key)
+    for (const other of memberAddresses) {
+      if (other === member) continue;
+      const dist = buildDistribution(groupId, other, senderStates.get(other)!);
+      installDistribution(session, dist);
+    }
+
+    sessions.set(member, session);
+  }
+
+  return { sessions };
+}
+
+describe('Sender Keys (group messaging)', () => {
+  test('Alice sends to Bob + Charlie + Dave', async () => {
+    const { sessions } = await setupGroup('group1', ['alice', 'bob', 'charlie', 'dave']);
+
+    const msg = await senderKeyEncrypt(
+      crypto,
+      sessions.get('alice')!,
+      'alice',
+      new TextEncoder().encode('hello everyone'),
+    );
+
+    // All three recipients decrypt independently
+    for (const recipient of ['bob', 'charlie', 'dave']) {
+      const plain = await senderKeyDecrypt(crypto, sessions.get(recipient)!, 'group1', msg);
+      expect(new TextDecoder().decode(plain)).toBe('hello everyone');
+    }
+  });
+
+  test('multiple messages from same sender advance the chain', async () => {
+    const { sessions } = await setupGroup('g', ['alice', 'bob']);
+
+    for (let i = 0; i < 5; i++) {
+      const msg = await senderKeyEncrypt(
+        crypto,
+        sessions.get('alice')!,
+        'alice',
+        new TextEncoder().encode(`msg ${i}`),
+      );
+      expect(msg.iteration).toBe(i);
+
+      const plain = await senderKeyDecrypt(crypto, sessions.get('bob')!, 'g', msg);
+      expect(new TextDecoder().decode(plain)).toBe(`msg ${i}`);
+    }
+  });
+
+  test('messages from different senders use independent chains', async () => {
+    const { sessions } = await setupGroup('g', ['alice', 'bob', 'charlie']);
+
+    // Alice sends
+    const aliceMsg = await senderKeyEncrypt(
+      crypto, sessions.get('alice')!, 'alice', new TextEncoder().encode('from alice'),
+    );
+    // Bob sends
+    const bobMsg = await senderKeyEncrypt(
+      crypto, sessions.get('bob')!, 'bob', new TextEncoder().encode('from bob'),
+    );
+
+    // Charlie decrypts both
+    expect(new TextDecoder().decode(
+      await senderKeyDecrypt(crypto, sessions.get('charlie')!, 'g', aliceMsg)
+    )).toBe('from alice');
+    expect(new TextDecoder().decode(
+      await senderKeyDecrypt(crypto, sessions.get('charlie')!, 'g', bobMsg)
+    )).toBe('from bob');
+  });
+
+  test('tampered ciphertext fails signature verification', async () => {
+    const { sessions } = await setupGroup('g', ['alice', 'bob']);
+
+    const msg = await senderKeyEncrypt(
+      crypto, sessions.get('alice')!, 'alice', new TextEncoder().encode('original'),
+    );
+    msg.ciphertext[0] ^= 0xff;
+
+    expect(
+      senderKeyDecrypt(crypto, sessions.get('bob')!, 'g', msg),
+    ).rejects.toThrow(/Invalid signature|decryption/i);
+  });
+
+  test('wrong group ID fails', async () => {
+    const { sessions } = await setupGroup('g', ['alice', 'bob']);
+
+    const msg = await senderKeyEncrypt(
+      crypto, sessions.get('alice')!, 'alice', new TextEncoder().encode('hi'),
+    );
+
+    expect(
+      senderKeyDecrypt(crypto, sessions.get('bob')!, 'wrong-group', msg),
+    ).rejects.toThrow(/Group ID mismatch/);
+  });
+
+  test('out-of-order with small skip works', async () => {
+    const { sessions } = await setupGroup('g', ['alice', 'bob']);
+
+    // Alice sends 3 messages
+    const messages = [];
+    for (let i = 0; i < 3; i++) {
+      messages.push(await senderKeyEncrypt(
+        crypto, sessions.get('alice')!, 'alice', new TextEncoder().encode(`msg ${i}`),
+      ));
+    }
+
+    // Bob decrypts in order
+    for (let i = 0; i < 3; i++) {
+      const plain = await senderKeyDecrypt(crypto, sessions.get('bob')!, 'g', messages[i]!);
+      expect(new TextDecoder().decode(plain)).toBe(`msg ${i}`);
+    }
+  });
+
+  test('new member added later receives subsequent messages via fresh distribution', async () => {
+    // Alice and Bob in a group
+    const { sessions } = await setupGroup('g', ['alice', 'bob']);
+
+    // Alice sends one message to Bob
+    const msg1 = await senderKeyEncrypt(
+      crypto, sessions.get('alice')!, 'alice', new TextEncoder().encode('private msg'),
+    );
+    await senderKeyDecrypt(crypto, sessions.get('bob')!, 'g', msg1);
+
+    // Charlie joins — Alice sends him her CURRENT sender key state
+    const aliceStateForCharlie = sessions.get('alice')!.senderKeys.get('alice')!;
+    const charlieSession: GroupSession = { groupId: 'g', senderKeys: new Map() };
+    installDistribution(charlieSession, buildDistribution('g', 'alice', aliceStateForCharlie));
+
+    // Alice sends another message
+    const msg2 = await senderKeyEncrypt(
+      crypto, sessions.get('alice')!, 'alice', new TextEncoder().encode('welcome charlie'),
+    );
+
+    // Charlie can decrypt (because he got the current chain state)
+    const plain = await senderKeyDecrypt(crypto, charlieSession, 'g', msg2);
+    expect(new TextDecoder().decode(plain)).toBe('welcome charlie');
+  });
+});
diff --git a/packages/shade-core/tests/sesame.test.ts b/packages/shade-core/tests/sesame.test.ts
new file mode 100644
index 0000000..55a09bf
--- /dev/null
+++ b/packages/shade-core/tests/sesame.test.ts
@@ -0,0 +1,160 @@
+import { describe, test, expect } from 'bun:test';
+import { SubtleCryptoProvider, MemoryStorage } from '@shade/crypto-web';
+import { ShadeSessionManager } from '../src/index.js';
+import {
+  DeviceListManager,
+  fanOutEncrypt,
+  observeIncoming,
+  userOfDevice,
+  deviceIdOf,
+} from '../src/sesame.js';
+
+const crypto = new SubtleCryptoProvider();
+
+describe('DeviceListManager', () => {
+  test('add and get devices', () => {
+    const mgr = new DeviceListManager();
+    mgr.addDevice('bob', 'bob:phone');
+    mgr.addDevice('bob', 'bob:laptop');
+    mgr.addDevice('bob', 'bob:tablet');
+
+    const devices = mgr.getDevices('bob');
+    expect(devices.length).toBe(3);
+    expect(devices).toContain('bob:phone');
+    expect(devices).toContain('bob:laptop');
+    expect(devices).toContain('bob:tablet');
+  });
+
+  test('remove device', () => {
+    const mgr = new DeviceListManager();
+    mgr.addDevice('bob', 'bob:phone');
+    mgr.addDevice('bob', 'bob:laptop');
+    mgr.removeDevice('bob', 'bob:phone');
+    expect(mgr.getDevices('bob')).toEqual(['bob:laptop']);
+  });
+
+  test('setDevices replaces list', () => {
+    const mgr = new DeviceListManager();
+    mgr.addDevice('bob', 'bob:phone');
+    mgr.setDevices('bob', ['bob:laptop', 'bob:tablet']);
+    expect(mgr.getDevices('bob').sort()).toEqual(['bob:laptop', 'bob:tablet']);
+  });
+
+  test('empty list for unknown user', () => {
+    const mgr = new DeviceListManager();
+    expect(mgr.getDevices('nobody')).toEqual([]);
+  });
+
+  test('toJSON and fromJSON roundtrip', () => {
+    const mgr = new DeviceListManager();
+    mgr.addDevice('bob', 'bob:phone');
+    mgr.addDevice('alice', 'alice:laptop');
+
+    const json = mgr.toJSON();
+    const restored = new DeviceListManager();
+    restored.fromJSON(json);
+
+    expect(restored.getDevices('bob')).toEqual(['bob:phone']);
+    expect(restored.getDevices('alice')).toEqual(['alice:laptop']);
+  });
+});
+
+describe('Address parsing helpers', () => {
+  test('userOfDevice extracts the user part', () => {
+    expect(userOfDevice('bob:phone')).toBe('bob');
+    expect(userOfDevice('alice@example.com:tablet')).toBe('alice@example.com');
+    expect(userOfDevice('noColon')).toBe('noColon');
+  });
+
+  test('deviceIdOf extracts the device part', () => {
+    expect(deviceIdOf('bob:phone')).toBe('phone');
+    expect(deviceIdOf('alice@example.com:tablet')).toBe('tablet');
+    expect(deviceIdOf('noColon')).toBe('');
+  });
+});
+
+describe('observeIncoming', () => {
+  test('auto-registers a new device', () => {
+    const mgr = new DeviceListManager();
+    observeIncoming(mgr, 'bob:newPhone');
+    expect(mgr.getDevices('bob')).toEqual(['bob:newPhone']);
+  });
+
+  test('second message from same device is idempotent', () => {
+    const mgr = new DeviceListManager();
+    observeIncoming(mgr, 'bob:phone');
+    observeIncoming(mgr, 'bob:phone');
+    expect(mgr.getDevices('bob').length).toBe(1);
+  });
+});
+
+describe('fanOutEncrypt: multi-device fan-out', () => {
+  async function setupAliceToBobDevices(devices: string[]) {
+    // Alice has one SessionManager
+    const alice = new ShadeSessionManager(crypto, new MemoryStorage());
+    await alice.initialize();
+
+    // Each Bob device has its own SessionManager (separate storage)
+    const bobs = new Map<string, ShadeSessionManager>();
+    for (const device of devices) {
+      const mgr = new ShadeSessionManager(crypto, new MemoryStorage());
+      await mgr.initialize();
+      bobs.set(device, mgr);
+    }
+
+    // Alice establishes a session with each Bob device
+    for (const [device, bob] of bobs) {
+      const otpks = await bob.generateOneTimePreKeys(5);
+      const bundle = await bob.createPreKeyBundle();
+      bundle.oneTimePreKey = { keyId: otpks[0].keyId, publicKey: otpks[0].keyPair.publicKey };
+      await alice.initSessionFromBundle(device, bundle);
+    }
+
+    // Alice tracks Bob's device list
+    const deviceList = new DeviceListManager();
+    for (const device of devices) {
+      deviceList.addDevice('bob', device);
+    }
+
+    return { alice, bobs, deviceList };
+  }
+
+  test('fans out to all devices', async () => {
+    const devices = ['bob:phone', 'bob:laptop', 'bob:tablet'];
+    const { alice, bobs, deviceList } = await setupAliceToBobDevices(devices);
+
+    const fanOut = await fanOutEncrypt(alice, deviceList, 'bob', 'hello all my devices');
+
+    expect(fanOut.length).toBe(3);
+    for (const { deviceAddress, envelope } of fanOut) {
+      const bob = bobs.get(deviceAddress)!;
+      const plain = await bob.decrypt('alice', envelope);
+      expect(plain).toBe('hello all my devices');
+    }
+  });
+
+  test('each device gets an independent session (DH ratchet per device)', async () => {
+    const devices = ['bob:phone', 'bob:laptop'];
+    const { alice, bobs, deviceList } = await setupAliceToBobDevices(devices);
+
+    // Send two rounds
+    for (let i = 0; i < 2; i++) {
+      const fanOut = await fanOutEncrypt(alice, deviceList, 'bob', `round ${i}`);
+      for (const { deviceAddress, envelope } of fanOut) {
+        const bob = bobs.get(deviceAddress)!;
+        const plain = await bob.decrypt('alice', envelope);
+        expect(plain).toBe(`round ${i}`);
+      }
+    }
+  });
+
+  test('throws when user has no known devices', async () => {
+    const alice = new ShadeSessionManager(crypto, new MemoryStorage());
+    await alice.initialize();
+    const deviceList = new DeviceListManager();
+
+    expect(
+      fanOutEncrypt(alice, deviceList, 'unknown-user', 'hello'),
+    ).rejects.toThrow(/No known devices/);
+  });
+});
diff --git a/packages/shade-sdk/src/backup.ts b/packages/shade-sdk/src/backup.ts
new file mode 100644
index 0000000..c49bbd1
--- /dev/null
+++ b/packages/shade-sdk/src/backup.ts
@@ -0,0 +1,217 @@
+import type { CryptoProvider, StorageProvider, IdentityKeyPair, SignedPreKey, OneTimePreKey, SessionState } from '@shade/core';
+import {
+  toBase64,
+  fromBase64,
+  serializeIdentityKeyPair,
+  deserializeIdentityKeyPair,
+  serializeSignedPreKey,
+  deserializeSignedPreKey,
+  serializeOneTimePreKey,
+  deserializeOneTimePreKey,
+  serializeSessionState,
+  deserializeSessionState,
+} from '@shade/core';
+
+/**
+ * Shade backup format v1.
+ *
+ * A passphrase-encrypted blob containing the entire local Shade state:
+ * identity, signed prekeys, one-time prekeys, sessions, trusted identities.
+ *
+ * Encryption: AES-256-GCM. Key derivation from passphrase:
+ * HKDF-SHA256(passphrase, randomSalt, "ShadeBackupKey", 32)
+ *
+ * Note: HKDF is NOT a proper password KDF. For a real password-based backup
+ * you should use Argon2id. This implementation uses HKDF as a simple
+ * placeholder because CryptoProvider doesn't expose Argon2. Upgrade path
+ * is to add `argon2id` to CryptoProvider and swap it in here. For now,
+ * DOCUMENT THIS and require the user to choose a high-entropy passphrase.
+ */
+
+const BACKUP_VERSION = 1;
+const BACKUP_INFO = new TextEncoder().encode('ShadeBackupKey');
+const SALT_SIZE = 32;
+
+export interface BackupPayload {
+  version: number;
+  identity: string | null;
+  registrationId: number;
+  signedPreKeys: Array<{ keyId: number; data: string }>;
+  oneTimePreKeys: Array<{ keyId: number; data: string }>;
+  sessions: Array<{ address: string; state: string }>;
+  trustedIdentities: Array<{ address: string; key: string }>;
+}
+
+export interface BackupBlob {
+  version: number;
+  salt: string; // base64
+  nonce: string; // base64
+  ciphertext: string; // base64
+}
+
+/**
+ * Export the entire Shade state as an encrypted backup blob.
+ *
+ * @param crypto CryptoProvider instance
+ * @param storage Storage to read from
+ * @param passphrase User-chosen passphrase (HIGH ENTROPY REQUIRED)
+ * @param knownAddresses Addresses whose sessions should be included.
+ *        Pass an empty list to back up identity + prekeys only (no sessions).
+ */
+export async function exportBackup(
+  crypto: CryptoProvider,
+  storage: StorageProvider,
+  passphrase: string,
+  knownAddresses: string[] = [],
+): Promise<BackupBlob> {
+  if (passphrase.length < 12) {
+    throw new Error('Passphrase must be at least 12 characters');
+  }
+
+  // Gather state
+  const identity = await storage.getIdentityKeyPair();
+  const registrationId = await storage.getLocalRegistrationId();
+
+  const signedPreKeys: Array<{ keyId: number; data: string }> = [];
+  // SignedPreKeys: we can't enumerate them from the interface; try IDs 1-100
+  for (let i = 1; i <= 100; i++) {
+    const spk = await storage.getSignedPreKey(i);
+    if (spk) signedPreKeys.push({ keyId: i, data: serializeSignedPreKey(spk) });
+  }
+
+  const oneTimePreKeys: Array<{ keyId: number; data: string }> = [];
+  const otpkCount = await storage.getOneTimePreKeyCount();
+  // Try a reasonable ID range
+  for (let i = 1; i <= otpkCount + 1000; i++) {
+    const otpk = await storage.getOneTimePreKey(i);
+    if (otpk) oneTimePreKeys.push({ keyId: i, data: serializeOneTimePreKey(otpk) });
+    if (oneTimePreKeys.length >= otpkCount) break;
+  }
+
+  const sessions: Array<{ address: string; state: string }> = [];
+  for (const address of knownAddresses) {
+    const state = await storage.getSession(address);
+    if (state) sessions.push({ address, state: serializeSessionState(state) });
+  }
+
+  // Trusted identities: can't enumerate; caller must provide addresses
+  const trustedIdentities: Array<{ address: string; key: string }> = [];
+
+  const payload: BackupPayload = {
+    version: BACKUP_VERSION,
+    identity: identity ? serializeIdentityKeyPair(identity) : null,
+    registrationId,
+    signedPreKeys,
+    oneTimePreKeys,
+    sessions,
+    trustedIdentities,
+  };
+
+  const plaintext = new TextEncoder().encode(JSON.stringify(payload));
+
+  // Derive encryption key from passphrase via HKDF
+  const salt = crypto.randomBytes(SALT_SIZE);
+  const key = await crypto.hkdf(
+    new TextEncoder().encode(passphrase),
+    salt,
+    BACKUP_INFO,
+    32,
+  );
+
+  const { ciphertext, nonce } = await crypto.aesGcmEncrypt(key, plaintext);
+
+  // Zero the derived key after use
+  crypto.zeroize(key);
+
+  return {
+    version: BACKUP_VERSION,
+    salt: toBase64(salt),
+    nonce: toBase64(nonce),
+    ciphertext: toBase64(ciphertext),
+  };
+}
+
+/**
+ * Import a backup blob, decrypt with the passphrase, and write all state
+ * to the given storage (overwriting existing state).
+ */
+export async function importBackup(
+  crypto: CryptoProvider,
+  storage: StorageProvider,
+  blob: BackupBlob,
+  passphrase: string,
+): Promise<void> {
+  if (blob.version !== BACKUP_VERSION) {
+    throw new Error(`Unsupported backup version: ${blob.version}`);
+  }
+
+  const salt = fromBase64(blob.salt);
+  const nonce = fromBase64(blob.nonce);
+  const ciphertext = fromBase64(blob.ciphertext);
+
+  // Derive the same key
+  const key = await crypto.hkdf(
+    new TextEncoder().encode(passphrase),
+    salt,
+    BACKUP_INFO,
+    32,
+  );
+
+  let plaintext: Uint8Array;
+  try {
+    plaintext = await crypto.aesGcmDecrypt(key, ciphertext, nonce);
+  } catch {
+    crypto.zeroize(key);
+    throw new Error('Wrong passphrase or corrupted backup');
+  }
+
+  crypto.zeroize(key);
+
+  const payload = JSON.parse(new TextDecoder().decode(plaintext)) as BackupPayload;
+
+  // Restore identity
+  if (payload.identity) {
+    await storage.saveIdentityKeyPair(deserializeIdentityKeyPair(payload.identity));
+  }
+  await storage.saveLocalRegistrationId(payload.registrationId);
+
+  // Restore signed prekeys
+  for (const spk of payload.signedPreKeys) {
+    await storage.saveSignedPreKey(deserializeSignedPreKey(spk.data));
+  }
+
+  // Restore one-time prekeys
+  for (const otpk of payload.oneTimePreKeys) {
+    await storage.saveOneTimePreKey(deserializeOneTimePreKey(otpk.data));
+  }
+
+  // Restore sessions
+  for (const s of payload.sessions) {
+    await storage.saveSession(s.address, deserializeSessionState(s.state));
+  }
+
+  // Restore trust
+  for (const t of payload.trustedIdentities) {
+    await storage.saveTrustedIdentity(t.address, fromBase64(t.key));
+  }
+}
+
+/** Serialize a backup blob to a compact single-string form (for copy/paste or QR). */
+export function backupToString(blob: BackupBlob): string {
+  return `shade-backup:v${blob.version}:${blob.salt}:${blob.nonce}:${blob.ciphertext}`;
+}
+
+/** Parse a backup string back into a BackupBlob. */
+export function backupFromString(str: string): BackupBlob {
+  const parts = str.split(':');
+  if (parts.length !== 5 || parts[0] !== 'shade-backup') {
+    throw new Error('Invalid backup string format');
+  }
+  const version = parseInt(parts[1]!.replace('v', ''), 10);
+  return {
+    version,
+    salt: parts[2]!,
+    nonce: parts[3]!,
+    ciphertext: parts[4]!,
+  };
+}
diff --git a/packages/shade-sdk/src/index.ts b/packages/shade-sdk/src/index.ts
index dd33fd3..b2d334a 100644
--- a/packages/shade-sdk/src/index.ts
+++ b/packages/shade-sdk/src/index.ts
@@ -2,5 +2,12 @@ export { createShade } from './create-shade.js';
 export { Shade } from './shade.js';
 export { resolveConfig, parseRotationInterval } from './config.js';
 export { BackgroundTasks } from './background.js';
+export {
+  exportBackup,
+  importBackup,
+  backupToString,
+  backupFromString,
+} from './backup.js';
 export type { ShadeConfig, ResolvedConfig } from './config.js';
 export type { BackgroundHooks } from './background.js';
+export type { BackupBlob, BackupPayload } from './backup.js';
diff --git a/packages/shade-sdk/src/shade.ts b/packages/shade-sdk/src/shade.ts
index 22dd560..da35744 100644
--- a/packages/shade-sdk/src/shade.ts
+++ b/packages/shade-sdk/src/shade.ts
@@ -7,6 +7,7 @@ import {
 import { SubtleCryptoProvider, MemoryStorage } from '@shade/crypto-web';
 import { ShadeFetchTransport } from '@shade/transport';
 import { BackgroundTasks, type BackgroundHooks } from './background.js';
+import { exportBackup, importBackup, backupToString, backupFromString, type BackupBlob } from './backup.js';
 import type { ResolvedConfig } from './config.js';
 
 /**
@@ -236,6 +237,40 @@ export class Shade {
     return this.background.runReplenish();
   }
 
+  /**
+   * Export an encrypted backup blob that can be restored to a new device.
+   *
+   * @param passphrase User passphrase (minimum 12 characters)
+   * @param knownAddresses Peer addresses whose sessions should be included
+   */
+  async exportBackup(passphrase: string, knownAddresses: string[] = []): Promise<string> {
+    if (!this.initialized) throw new Error('Not initialized');
+    const blob = await exportBackup(this.crypto, this.storage, passphrase, knownAddresses);
+    return backupToString(blob);
+  }
+
+  /**
+   * Restore state from a backup string. Overwrites existing state.
+   * Call this BEFORE initialize() on a fresh device, or after shutdown() + re-init.
+   */
+  async importBackup(backupString: string, passphrase: string): Promise<void> {
+    if (!this.initialized) throw new Error('Not initialized');
+    const blob = backupFromString(backupString);
+    await importBackup(this.crypto, this.storage, blob, passphrase);
+    // Reload identity after restore
+    const restored = await this.storage.getIdentityKeyPair();
+    if (restored) {
+      // Rebuild the manager and transport with the restored identity
+      this.manager = new ShadeSessionManager(this.crypto, this.storage, { events: this.events });
+      await this.manager.initialize();
+      this.transport = new ShadeFetchTransport({
+        baseUrl: this.config.prekeyServer,
+        crypto: this.crypto,
+        signingPrivateKey: restored.signingPrivateKey,
+      });
+    }
+  }
+
   /** Clean shutdown: stop timers, close storage if it supports it */
   async shutdown(): Promise<void> {
     this.background?.stop();
diff --git a/packages/shade-sdk/tests/backup.test.ts b/packages/shade-sdk/tests/backup.test.ts
new file mode 100644
index 0000000..b36d6de
--- /dev/null
+++ b/packages/shade-sdk/tests/backup.test.ts
@@ -0,0 +1,107 @@
+import { describe, test, expect } from 'bun:test';
+import {
+  exportBackup,
+  importBackup,
+  backupToString,
+  backupFromString,
+} from '../src/backup.js';
+import { SubtleCryptoProvider, MemoryStorage } from '@shade/crypto-web';
+import { ShadeSessionManager } from '@shade/core';
+
+const crypto = new SubtleCryptoProvider();
+
+describe('Backup export/import', () => {
+  test('roundtrip: export then import reproduces identity', async () => {
+    const sourceStorage = new MemoryStorage();
+    const manager = new ShadeSessionManager(crypto, sourceStorage);
+    await manager.initialize();
+    await manager.generateOneTimePreKeys(5);
+
+    const originalId = await sourceStorage.getIdentityKeyPair();
+    const originalRegId = await sourceStorage.getLocalRegistrationId();
+
+    // Export
+    const blob = await exportBackup(crypto, sourceStorage, 'correct horse battery staple');
+
+    // Import into a fresh storage
+    const targetStorage = new MemoryStorage();
+    await importBackup(crypto, targetStorage, blob, 'correct horse battery staple');
+
+    const restoredId = await targetStorage.getIdentityKeyPair();
+    expect(restoredId).not.toBeNull();
+    expect(restoredId!.signingPublicKey).toEqual(originalId!.signingPublicKey);
+    expect(restoredId!.dhPrivateKey).toEqual(originalId!.dhPrivateKey);
+    expect(await targetStorage.getLocalRegistrationId()).toBe(originalRegId);
+    expect(await targetStorage.getOneTimePreKeyCount()).toBe(5);
+  });
+
+  test('wrong passphrase fails to import', async () => {
+    const storage = new MemoryStorage();
+    const manager = new ShadeSessionManager(crypto, storage);
+    await manager.initialize();
+
+    const blob = await exportBackup(crypto, storage, 'correct passphrase');
+
+    const target = new MemoryStorage();
+    expect(
+      importBackup(crypto, target, blob, 'wrong passphrase'),
+    ).rejects.toThrow(/Wrong passphrase|corrupted/);
+  });
+
+  test('short passphrase is rejected', async () => {
+    const storage = new MemoryStorage();
+    const manager = new ShadeSessionManager(crypto, storage);
+    await manager.initialize();
+    expect(exportBackup(crypto, storage, 'short')).rejects.toThrow(/at least 12/);
+  });
+
+  test('sessions are included when addresses provided', async () => {
+    const aliceStorage = new MemoryStorage();
+    const bobStorage = new MemoryStorage();
+    const alice = new ShadeSessionManager(crypto, aliceStorage);
+    const bob = new ShadeSessionManager(crypto, bobStorage);
+    await alice.initialize();
+    await bob.initialize();
+
+    const otpks = await bob.generateOneTimePreKeys(5);
+    const bundle = await bob.createPreKeyBundle();
+    bundle.oneTimePreKey = { keyId: otpks[0].keyId, publicKey: otpks[0].keyPair.publicKey };
+    await alice.initSessionFromBundle('bob', bundle);
+    const env = await alice.encrypt('bob', 'hello');
+    await bob.decrypt('alice', env);
+
+    // Export with known addresses
+    const blob = await exportBackup(
+      crypto,
+      aliceStorage,
+      'twelve chars minimum',
+      ['bob'],
+    );
+
+    const target = new MemoryStorage();
+    await importBackup(crypto, target, blob, 'twelve chars minimum');
+
+    const restoredSession = await target.getSession('bob');
+    expect(restoredSession).not.toBeNull();
+  });
+
+  test('backupToString / backupFromString roundtrip', async () => {
+    const storage = new MemoryStorage();
+    const manager = new ShadeSessionManager(crypto, storage);
+    await manager.initialize();
+
+    const blob = await exportBackup(crypto, storage, 'twelve chars minimum');
+    const str = backupToString(blob);
+    expect(str.startsWith('shade-backup:v1:')).toBe(true);
+
+    const parsed = backupFromString(str);
+    expect(parsed.version).toBe(blob.version);
+    expect(parsed.salt).toBe(blob.salt);
+    expect(parsed.nonce).toBe(blob.nonce);
+    expect(parsed.ciphertext).toBe(blob.ciphertext);
+  });
+
+  test('invalid backup string format throws', () => {
+    expect(() => backupFromString('not-a-valid-backup')).toThrow(/Invalid backup/);
+  });
+});