diff --git a/crates/pdftract-cli/Cargo.toml b/crates/pdftract-cli/Cargo.toml
index a462eb6..c2792e4 100644
--- a/crates/pdftract-cli/Cargo.toml
+++ b/crates/pdftract-cli/Cargo.toml
@@ -45,6 +45,8 @@ hyper-util = { version = "0.1", features = ["full"] }
 image = "0.24"
 http-body-util = "0.1"
 humantime = "2.1"
+indicatif = { version = "0.17", optional = true }
+num_cpus = "1"
 libloading = { version = "0.8", optional = true }
 lzw = { workspace = true }
 multer = "3"
@@ -90,7 +92,7 @@ mcp = []
 # Inspector web viewer
 inspect = []
 # Folder grep mode
-grep = []
+grep = ["dep:indicatif"]
 # Content-addressed cache
 cache = []
 # Visual citation receipts
diff --git a/crates/pdftract-cli/src/grep.rs b/crates/pdftract-cli/src/grep.rs
new file mode 100644
index 0000000..4da68ff
--- /dev/null
+++ b/crates/pdftract-cli/src/grep.rs
@@ -0,0 +1,374 @@
+use anyhow::{Context, Result};
+use clap::Parser;
+use std::path::PathBuf;
+
+/// Progress reporting mode
+#[derive(Debug, Clone, Copy, PartialEq, Eq)]
+pub enum ProgressMode {
+    /// Auto-detect: on if TTY, off otherwise
+    Auto,
+    /// Force on
+    On,
+    /// Force off
+    Off,
+}
+
+/// Grep subcommand arguments
+#[derive(Parser, Debug)]
+pub struct GrepArgs {
+    /// Search pattern (literal string by default; regex with -E)
+    #[arg(value_name = "PATTERN")]
+    pub pattern: String,
+
+    /// Paths to search (files, directories, or URLs; default: ".")
+    #[arg(value_name = "PATH", default_value = ".")]
+    pub paths: Vec<PathBuf>,
+
+    /// Recurse into directories (default: on when path is a directory)
+    #[arg(short, long)]
+    pub recursive: bool,
+
+    /// Case-insensitive search
+    #[arg(short, long)]
+    pub ignore_case: bool,
+
+    /// Treat PATTERN as a full regular expression
+    #[arg(short = 'E', long)]
+    pub extended_regexp: bool,
+
+    /// Literal string match (default: on)
+    #[arg(short = 'F', long)]
+    pub fixed_strings: bool,
+
+    /// Match on word boundaries
+    #[arg(short = 'w', long)]
+    pub word_regexp: bool,
+
+    /// Invert match: print non-matching spans instead
+    #[arg(short = 'v', long)]
+    pub invert_match: bool,
+
+    /// Print only filenames with at least one match
+    #[arg(short = 'l', long)]
+    pub files_with_matches: bool,
+
+    /// Print match counts per file
+    #[arg(short = 'c', long)]
+    pub count: bool,
+
+    /// Worker thread count (default: CPU count)
+    #[arg(short = 'j', long, value_name = "N")]
+    pub threads: Option<usize>,
+
+    /// Run OCR on scanned pages too (slower)
+    #[arg(long)]
+    pub ocr: bool,
+
+    /// JSON-Lines output (one match per line)
+    #[arg(long)]
+    pub json: bool,
+
+    /// Write annotated PDFs to DIR/<name>-highlighted.pdf
+    #[arg(long, value_name = "DIR")]
+    pub highlight: Option<PathBuf>,
+
+    /// Stop after N total matches
+    #[arg(long, value_name = "N")]
+    pub max_results: Option<usize>,
+
+    /// Show progress bar (default: auto)
+    #[arg(long)]
+    pub progress: bool,
+
+    /// Force-disable the progress bar
+    #[arg(long)]
+    pub no_progress: bool,
+
+    /// Emit machine-readable progress events to stderr
+    #[arg(long)]
+    pub progress_json: bool,
+
+    /// Suppress all output except exit code
+    #[arg(long)]
+    pub quiet: bool,
+}
+
+impl GrepArgs {
+    /// Get the progress mode based on flags and TTY detection
+    pub fn progress_mode(&self) -> ProgressMode {
+        if self.progress_json {
+            // JSON progress events don't use the progress bar
+            return ProgressMode::Off;
+        }
+        if self.no_progress {
+            return ProgressMode::Off;
+        }
+        if self.progress {
+            return ProgressMode::On;
+        }
+        ProgressMode::Auto
+    }
+
+    /// Validate the arguments and return normalized values
+    pub fn validate(&self) -> Result<GrepConfig> {
+        // Check if the grep feature is enabled
+        #[cfg(not(feature = "grep"))]
+        {
+            anyhow::bail!("feature 'grep' not compiled in. Build pdftract with: --features grep");
+        }
+
+        // Validate pattern is not empty
+        if self.pattern.is_empty() {
+            anyhow::bail!("PATTERN may not be empty");
+        }
+
+        // Validate pattern doesn't contain null byte
+        if self.pattern.contains('\0') {
+            anyhow::bail!("PATTERN may not contain null byte");
+        }
+
+        // Determine match mode (default: literal/-F)
+        // -E explicitly enables regex, -F explicitly enables literal
+        // When neither is set, default to literal (per plan and ripgrep compat)
+        let use_regex = self.extended_regexp && !self.fixed_strings;
+
+        // Determine if recursion should be used
+        // Default: recursive if path is a directory (ripgrep compat)
+        let recursive = if self.paths.iter().any(|p| p.is_dir()) {
+            self.recursive || true // default to true for dirs
+        } else {
+            self.recursive
+        };
+
+        // Validate highlight directory
+        let highlight_dir = if let Some(ref dir) = self.highlight {
+            if !dir.exists() {
+                std::fs::create_dir_all(dir).with_context(|| {
+                    format!("Failed to create highlight directory: {}", dir.display())
+                })?;
+            }
+            Some(dir.clone())
+        } else {
+            None
+        };
+
+        // Determine thread count
+        let threads = self.threads.unwrap_or_else(num_cpus::get);
+
+        Ok(GrepConfig {
+            pattern: self.pattern.clone(),
+            paths: self.paths.clone(),
+            recursive,
+            ignore_case: self.ignore_case,
+            use_regex,
+            word_regexp: self.word_regexp,
+            invert_match: self.invert_match,
+            files_with_matches: self.files_with_matches,
+            count: self.count,
+            threads,
+            ocr: self.ocr,
+            json: self.json,
+            highlight_dir,
+            max_results: self.max_results,
+            progress_mode: self.progress_mode(),
+            progress_json: self.progress_json,
+            quiet: self.quiet,
+        })
+    }
+}
+
+/// Normalized grep configuration after validation
+#[derive(Debug, Clone)]
+pub struct GrepConfig {
+    pub pattern: String,
+    pub paths: Vec<PathBuf>,
+    pub recursive: bool,
+    pub ignore_case: bool,
+    pub use_regex: bool,
+    pub word_regexp: bool,
+    pub invert_match: bool,
+    pub files_with_matches: bool,
+    pub count: bool,
+    pub threads: usize,
+    pub ocr: bool,
+    pub json: bool,
+    pub highlight_dir: Option<PathBuf>,
+    pub max_results: Option<usize>,
+    pub progress_mode: ProgressMode,
+    pub progress_json: bool,
+    pub quiet: bool,
+}
+
+/// Run the grep command
+pub fn run_grep(args: GrepArgs) -> Result<()> {
+    // Validate and normalize arguments
+    let config = args.validate()?;
+
+    // For now, just print the configuration
+    // TODO: Implement the actual grep logic in subsequent beads (7.8.2-7.8.10)
+    if !config.quiet {
+        eprintln!("pdftract grep: mode not yet implemented");
+        eprintln!("Pattern: {}", config.pattern);
+        eprintln!("Paths: {:?}", config.paths);
+        eprintln!(
+            "Match mode: {}",
+            if config.use_regex { "regex" } else { "literal" }
+        );
+        eprintln!("Case-insensitive: {}", config.ignore_case);
+        eprintln!("Word boundaries: {}", config.word_regexp);
+        eprintln!("Invert match: {}", config.invert_match);
+    }
+
+    std::process::exit(2);
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    fn parse_args(args: &[&str]) -> Result<GrepConfig> {
+        let args = GrepArgs::parse_from(args);
+        args.validate()
+    }
+
+    #[test]
+    fn test_default_literal_mode() {
+        let config = parse_args(&["grep", "test"]).unwrap();
+        assert!(!config.use_regex, "default should be literal mode");
+        assert_eq!(config.pattern, "test");
+        assert_eq!(config.paths, vec![PathBuf::from(".")]);
+    }
+
+    #[test]
+    fn test_extended_regex_mode() {
+        let config = parse_args(&["grep", "-E", r"\d+"]).unwrap();
+        assert!(config.use_regex, "-E should enable regex mode");
+        assert_eq!(config.pattern, r"\d+");
+    }
+
+    #[test]
+    fn test_fixed_strings_mode() {
+        let config = parse_args(&["grep", "-F", "test"]).unwrap();
+        assert!(!config.use_regex, "-F should enable literal mode");
+        assert_eq!(config.pattern, "test");
+    }
+
+    #[test]
+    fn test_ignore_case() {
+        let config = parse_args(&["grep", "-i", "test"]).unwrap();
+        assert!(config.ignore_case, "-i should enable case-insensitive");
+    }
+
+    #[test]
+    fn test_word_regexp() {
+        let config = parse_args(&["grep", "-w", "test"]).unwrap();
+        assert!(config.word_regexp, "-w should enable word boundaries");
+    }
+
+    #[test]
+    fn test_invert_match() {
+        let config = parse_args(&["grep", "-v", "test"]).unwrap();
+        assert!(config.invert_match, "-v should enable invert match");
+    }
+
+    #[test]
+    fn test_files_with_matches() {
+        let config = parse_args(&["grep", "-l", "test"]).unwrap();
+        assert!(
+            config.files_with_matches,
+            "-l should enable files-with-matches"
+        );
+    }
+
+    #[test]
+    fn test_count() {
+        let config = parse_args(&["grep", "-c", "test"]).unwrap();
+        assert!(config.count, "-c should enable count mode");
+    }
+
+    #[test]
+    fn test_json_output() {
+        let config = parse_args(&["grep", "--json", "test"]).unwrap();
+        assert!(config.json, "--json should enable JSON output");
+    }
+
+    #[test]
+    fn test_ocr_flag() {
+        let config = parse_args(&["grep", "--ocr", "test"]).unwrap();
+        assert!(config.ocr, "--ocr should enable OCR");
+    }
+
+    #[test]
+    fn test_quiet_flag() {
+        let config = parse_args(&["grep", "--quiet", "test"]).unwrap();
+        assert!(config.quiet, "--quiet should suppress output");
+    }
+
+    #[test]
+    fn test_empty_pattern_rejected() {
+        let result = parse_args(&["grep", ""]);
+        assert!(result.is_err(), "empty pattern should be rejected");
+    }
+
+    #[test]
+    fn test_null_byte_pattern_rejected() {
+        let result = parse_args(&["grep", "test\0pattern"]);
+        assert!(result.is_err(), "null byte in pattern should be rejected");
+    }
+
+    #[test]
+    fn test_progress_mode_auto() {
+        let config = parse_args(&["grep", "test"]).unwrap();
+        assert_eq!(config.progress_mode, ProgressMode::Auto);
+    }
+
+    #[test]
+    fn test_progress_mode_on() {
+        let config = parse_args(&["grep", "--progress", "test"]).unwrap();
+        assert_eq!(config.progress_mode, ProgressMode::On);
+    }
+
+    #[test]
+    fn test_progress_mode_off() {
+        let config = parse_args(&["grep", "--no-progress", "test"]).unwrap();
+        assert_eq!(config.progress_mode, ProgressMode::Off);
+    }
+
+    #[test]
+    fn test_progress_json_disables_bar() {
+        let config = parse_args(&["grep", "--progress-json", "test"]).unwrap();
+        assert_eq!(config.progress_mode, ProgressMode::Off);
+        assert!(config.progress_json);
+    }
+
+    #[test]
+    fn test_recursive_default_for_directory() {
+        let config = parse_args(&["grep", "test", "/tmp"]).unwrap();
+        assert!(
+            config.recursive,
+            "should default to recursive for directory paths"
+        );
+    }
+
+    #[test]
+    fn test_threads_default() {
+        let config = parse_args(&["grep", "test"]).unwrap();
+        assert_eq!(
+            config.threads,
+            num_cpus::get(),
+            "default threads should be CPU count"
+        );
+    }
+
+    #[test]
+    fn test_threads_custom() {
+        let config = parse_args(&["grep", "-j", "4", "test"]).unwrap();
+        assert_eq!(config.threads, 4);
+    }
+
+    #[test]
+    fn test_max_results() {
+        let config = parse_args(&["grep", "--max-results", "100", "test"]).unwrap();
+        assert_eq!(config.max_results, Some(100));
+    }
+}
diff --git a/crates/pdftract-cli/src/main.rs b/crates/pdftract-cli/src/main.rs
index b5d3562..03f9c32 100644
--- a/crates/pdftract-cli/src/main.rs
+++ b/crates/pdftract-cli/src/main.rs
@@ -6,6 +6,7 @@ use std::path::PathBuf;
 mod cache_cmd;
 mod codegen;
 mod doctor;
+mod grep;
 mod mcp;
 mod password;
 mod serve;
@@ -114,6 +115,8 @@ enum Commands {
         #[arg(long)]
         md_anchors: bool,
     },
+    /// Search for text patterns in PDF files with bounding-box results
+    Grep(grep::GrepArgs),
     /// Verify a receipt against a PDF file
     VerifyReceipt(verify_receipt::VerifyReceiptCommand),
     /// Manage the extraction cache
@@ -366,6 +369,12 @@ fn main() -> Result<()> {
                 std::process::exit(1);
             }
         }
+        Commands::Grep(args) => {
+            if let Err(e) = grep::run_grep(args) {
+                eprintln!("Error: {}", e);
+                std::process::exit(1);
+            }
+        }
         Commands::Cache { cache_command } => {
             if let Err(e) = cmd_cache(cache_command) {
                 eprintln!("Error: {}", e);
diff --git a/notes/pdftract-4xu46.md b/notes/pdftract-4xu46.md
new file mode 100644
index 0000000..783543b
--- /dev/null
+++ b/notes/pdftract-4xu46.md
@@ -0,0 +1,106 @@
+# pdftract-4xu46: 7.8.1 grep subcommand structure + clap parsing + ripgrep-style flag table
+
+## Summary
+
+Implemented the `pdftract grep` subcommand structure with clap-based argument parsing and ripgrep-style flag compatibility.
+
+## Changes Made
+
+### 1. Cargo.toml (crates/pdftract-cli/Cargo.toml)
+- Added `indicatif = { version = "0.17", optional = true }` dependency
+- Added `num_cpus = "1"` dependency
+- Updated `grep` feature to include `dep:indicatif`
+
+### 2. main.rs (crates/pdftract-cli/src/main.rs)
+- Added `mod grep;` declaration
+- Added `Grep(grep::GrepArgs)` variant to `Commands` enum
+- Added handler for `Commands::Grep(args)` in main()
+
+### 3. grep.rs (crates/pdftract-cli/src/grep.rs) - NEW FILE
+- Created `ProgressMode` enum (Auto/On/Off)
+- Created `GrepArgs` struct with clap derive macro supporting:
+  - Positional `PATTERN` argument
+  - Variadic `PATH...` arguments (default: ".")
+  - `-r/--recursive` flag
+  - `-i/--ignore-case` flag
+  - `-E/--extended-regexp` flag
+  - `-F/--fixed-strings` flag (default: literal mode)
+  - `-w/--word-regexp` flag
+  - `-v/--invert-match` flag
+  - `-l/--files-with-matches` flag
+  - `-c/--count` flag
+  - `-j/--threads N` flag
+  - `--ocr` flag
+  - `--json` flag
+  - `--highlight DIR` flag
+  - `--max-results N` flag
+  - `--progress` flag
+  - `--no-progress` flag
+  - `--progress-json` flag
+  - `--quiet` flag
+- Implemented `GrepArgs::validate()` with:
+  - Feature-gate check (prints error if grep feature not compiled)
+  - Pattern validation (non-empty, no null byte)
+  - Match mode determination (default: literal; -E enables regex; -F enables literal)
+  - Recursive detection (default: true for directory paths per ripgrep compat)
+  - Highlight directory validation and creation
+  - Thread count determination (default: CPU count)
+- Created `GrepConfig` struct with normalized values
+- Implemented stub `run_grep()` function (exits with code 2, prints config)
+
+## Acceptance Criteria Status
+
+- ✅ clap parses all flags from the plan table
+- ✅ Default behavior matches ripgrep (literal by default, -i off, -r implicit on dirs)
+- ✅ Unit tests: every flag combination from the plan's Critical tests section
+- ✅ Feature-off path: prints meaningful error
+- ✅ Path expansion: . recurses by default; single-file PATH does not recurse
+
+## Test Results
+
+All 21 unit tests pass:
+- test_default_literal_mode: PASSED
+- test_extended_regex_mode: PASSED
+- test_fixed_strings_mode: PASSED
+- test_ignore_case: PASSED
+- test_word_regexp: PASSED
+- test_invert_match: PASSED
+- test_files_with_matches: PASSED
+- test_count: PASSED
+- test_json_output: PASSED
+- test_ocr_flag: PASSED
+- test_quiet_flag: PASSED
+- test_empty_pattern_rejected: PASSED
+- test_null_byte_pattern_rejected: PASSED
+- test_progress_mode_auto: PASSED
+- test_progress_mode_on: PASSED
+- test_progress_mode_off: PASSED
+- test_progress_json_disables_bar: PASSED
+- test_recursive_default_for_directory: PASSED
+- test_threads_default: PASSED
+- test_threads_custom: PASSED
+- test_max_results: PASSED
+
+## Verification Commands
+
+```bash
+# Test help output
+cargo run --bin pdftract --features grep -- grep --help
+
+# Test default literal mode
+cargo run --bin pdftract --features grep -- grep "test"
+
+# Test feature-off error
+cargo run --bin pdftract --no-default-features -- grep "test" 2>&1 | grep "feature 'grep' not compiled in"
+
+# Run tests
+cargo test -p pdftract-cli --features grep --bin pdftract grep
+```
+
+## Notes
+
+- The grep subcommand is fully parsed but not yet implemented (stub exits with code 2)
+- Subsequent beads (7.8.2-7.8.10) will implement the actual grep logic
+- The `run_grep()` stub prints configuration for debugging
+- Flag defaults follow ripgrep semantics for muscle-memory compatibility
+- Default match mode is literal (not regex) per plan specification