diff --git a/src/session.rs b/src/session.rs
index 6665184..45123be 100644
--- a/src/session.rs
+++ b/src/session.rs
@@ -68,14 +68,6 @@ pub fn cleanup_temp_dir() {
 pub struct Session;
 
 impl Session {
-    /// Default first-output timeout in seconds.
-    /// If the child produces no output within this time, we assume it's hung.
-    const DEFAULT_FIRST_OUTPUT_TIMEOUT_SECS: u64 = 90;
-
-    /// Default stream-json first-output timeout in seconds.
-    /// If the child produces no stream-json events within this time, we assume it's hung.
-    const DEFAULT_STREAM_JSON_TIMEOUT_SECS: u64 = 90;
-
     /// Run a Claude Code session.
     ///
     /// # Arguments
@@ -171,11 +163,10 @@ impl Session {
             stop_hook_timeout_secs,
         );
 
-        // Get transcript path for stream-json monitoring (will be resolved from stop payload)
-        // For now, we don't know the transcript path, so we pass None
-        // The watchdog will monitor PTY output and overall timeout, and stream-json monitoring
-        // will be handled by the main thread via the emitter
-        let watchdog = Watchdog::new(watchdog_config, spawner.child_pid, None);
+        // Get temp directory path for stream-json monitoring
+        // The watchdog will monitor <temp_dir>/transcript.jsonl for stream-json output
+        let temp_dir_path = installer.dir_path().to_path_buf();
+        let watchdog = Watchdog::new(watchdog_config, spawner.child_pid, Some(temp_dir_path));
 
         let watchdog_state = watchdog.state();
 
diff --git a/tests/watchdog.rs b/tests/watchdog.rs
index 481a74d..680743e 100644
--- a/tests/watchdog.rs
+++ b/tests/watchdog.rs
@@ -8,14 +8,20 @@ use claude_print::error::Error;
 use claude_print::session::Session;
 use std::ffi::OsString;
 
-/// Locate the mock-claude binary compiled alongside the test binary.
-/// Test binaries live at `target/<profile>/deps/`; other bins at `target/<profile>/`.
+/// Locate the mock-claude binary.
+///
+/// In a workspace, binaries are built to the workspace target directory, not the
+/// individual project's target directory. The test binary lives at `target/<profile>/deps/`
+/// (within the project), but mock-claude is built to `<workspace-root>/target/<profile>/`.
 fn mock_claude_bin() -> std::path::PathBuf {
+    // Get the test executable path
     let exe = std::env::current_exe().expect("current_exe");
-    let profile_dir = exe
-        .parent() // deps/
-        .and_then(|p| p.parent()) // target/<profile>/
-        .expect("unexpected test binary path");
+
+    // Walk up from the test binary to find the workspace root
+    // Test binary: <workspace>/target/<profile>/deps/watchdog-<hash>
+    // We need: <workspace>/target/<profile>/mock-claude
+    let deps_dir = exe.parent().expect("no parent"); // deps/
+    let profile_dir = deps_dir.parent().expect("no grandparent"); // target/<profile>/
     profile_dir.join("mock-claude")
 }