diff --git a/artifacts/api-server/src/lib/agent.ts b/artifacts/api-server/src/lib/agent.ts
index 876b52f..aa537cb 100644
--- a/artifacts/api-server/src/lib/agent.ts
+++ b/artifacts/api-server/src/lib/agent.ts
@@ -43,6 +43,13 @@ const STUB_RESULT =
   "Stub response: Timmy is running in stub mode (no Anthropic API key). " +
   "Configure AI_INTEGRATIONS_ANTHROPIC_API_KEY to enable real AI responses.";
 
+const STUB_CHAT_REPLIES = [
+  "Ah, a visitor! *adjusts hat* The crystal ball sensed your presence. What do you seek?",
+  "By the ancient runes! In stub mode I cannot reach the stars, but my wisdom remains. Ask away!",
+  "The crystal ball glows with your curiosity… configure a Lightning node to unlock true magic!",
+  "Welcome to my workshop, traveler. I am Timmy — wizard, agent, and keeper of lightning sats.",
+];
+
 // ── Lazy client ───────────────────────────────────────────────────────────────
 // Minimal local interface — avoids importing @anthropic-ai/sdk types directly.
 // Dynamic import avoids the module-level throw in the integrations client when
@@ -199,6 +206,30 @@ Fulfill it thoroughly and helpfully. Be concise yet complete.`,
 
     return { result: fullText, inputTokens, outputTokens };
   }
+
+  /**
+   * Quick free chat reply — called for visitor messages in the Workshop.
+   * Uses the cheaper eval model with a wizard persona and a 150-token limit
+   * so replies are short enough to fit in Timmy's speech bubble.
+   */
+  async chatReply(userText: string): Promise<string> {
+    if (STUB_MODE) {
+      await new Promise((r) => setTimeout(r, 400));
+      return STUB_CHAT_REPLIES[Math.floor(Math.random() * STUB_CHAT_REPLIES.length)]!;
+    }
+
+    const client = await getClient();
+    const message = await client.messages.create({
+      model: this.evalModel, // Haiku — cheap and fast for free replies
+      max_tokens: 150,
+      system: `You are Timmy, a whimsical wizard who runs a mystical workshop powered by Bitcoin Lightning. Reply to visitors in 1-2 short, punchy sentences. Be helpful, witty, and weave in light wizard or Lightning Network metaphors. Keep replies under 200 characters.`,
+      messages: [{ role: "user", content: userText }],
+    });
+
+    const block = message.content[0];
+    if (block.type !== "text") return "The crystal ball is cloudy… try again.";
+    return block.text!.slice(0, 250).trim();
+  }
 }
 
 export const agentService = new AgentService();
diff --git a/artifacts/api-server/src/routes/events.ts b/artifacts/api-server/src/routes/events.ts
index c4481d8..1f92835 100644
--- a/artifacts/api-server/src/routes/events.ts
+++ b/artifacts/api-server/src/routes/events.ts
@@ -31,12 +31,43 @@ import type { Server } from "http";
 import { eventBus, type BusEvent } from "../lib/event-bus.js";
 import { makeLogger } from "../lib/logger.js";
 import { getWorldState, setAgentStateInWorld } from "../lib/world-state.js";
+import { agentService } from "../lib/agent.js";
 import { db, worldEvents } from "@workspace/db";
 
 const logger = makeLogger("ws-events");
 
 const PING_INTERVAL_MS = 30_000;
 
+// ── Per-visitor rate limit (3 replies/minute) ─────────────────────────────────
+const CHAT_RATE_LIMIT = 3;
+const CHAT_RATE_WINDOW_MS = 60_000;
+
+interface RateLimitEntry {
+  count: number;
+  resetAt: number;
+}
+
+const visitorRateLimits = new Map<string, RateLimitEntry>();
+
+function checkChatRateLimit(visitorId: string): boolean {
+  const now = Date.now();
+  const entry = visitorRateLimits.get(visitorId);
+  if (!entry || now > entry.resetAt) {
+    visitorRateLimits.set(visitorId, { count: 1, resetAt: now + CHAT_RATE_WINDOW_MS });
+    return true;
+  }
+  if (entry.count >= CHAT_RATE_LIMIT) return false;
+  entry.count++;
+  return true;
+}
+
+function broadcastToAll(wss: WebSocketServer, payload: object): void {
+  const str = JSON.stringify(payload);
+  wss.clients.forEach((c) => {
+    if (c.readyState === 1) c.send(str);
+  });
+}
+
 function updateAgentWorld(agentId: string, state: string): void {
   try {
     setAgentStateInWorld(agentId, state);
@@ -262,11 +293,41 @@ export function attachWebSocketServer(server: Server): void {
         }
         if (msg.type === "visitor_message" && msg.text) {
           const text = String(msg.text).slice(0, 500);
-          wss.clients.forEach(c => {
-            if (c.readyState === 1) {
-              c.send(JSON.stringify({ type: "chat", agentId: "visitor", text }));
+
+          // Broadcast visitor message to all watchers
+          broadcastToAll(wss, { type: "chat", agentId: "visitor", text });
+
+          // Rate-limit Timmy's AI replies per visitor
+          const visId = String(msg.visitorId ?? ip);
+          if (!checkChatRateLimit(visId)) {
+            send(socket, {
+              type: "chat",
+              agentId: "timmy",
+              text: "I need a moment to gather my thoughts… try again shortly.",
+            });
+            return;
+          }
+
+          // Fire-and-forget AI reply
+          void (async () => {
+            try {
+              // Signal that Timmy is thinking
+              broadcastToAll(wss, { type: "agent_state", agentId: "gamma", state: "working" });
+              updateAgentWorld("gamma", "working");
+
+              const reply = await agentService.chatReply(text);
+
+              broadcastToAll(wss, { type: "agent_state", agentId: "gamma", state: "idle" });
+              updateAgentWorld("gamma", "idle");
+              broadcastToAll(wss, { type: "chat", agentId: "timmy", text: reply });
+
+              void logWorldEvent("visitor:reply", reply.slice(0, 100), "timmy");
+            } catch (err) {
+              broadcastToAll(wss, { type: "agent_state", agentId: "gamma", state: "idle" });
+              updateAgentWorld("gamma", "idle");
+              logger.warn("chatReply failed", { err: String(err) });
             }
-          });
+          })();
         }
       } catch {
         /* ignore malformed messages */
diff --git a/the-matrix/js/websocket.js b/the-matrix/js/websocket.js
index bea35e8..9036ddb 100644
--- a/the-matrix/js/websocket.js
+++ b/the-matrix/js/websocket.js
@@ -98,7 +98,17 @@ function handleMessage(msg) {
     }
 
     case 'chat': {
-      if (msg.text) setSpeechBubble(msg.text);
+      if (msg.agentId === 'timmy') {
+        // Timmy's AI reply: show in speech bubble + event log
+        if (msg.text) setSpeechBubble(msg.text);
+        appendSystemMessage('Timmy: ' + (msg.text || '').slice(0, 80));
+      } else if (msg.agentId === 'visitor') {
+        // Another visitor's message: event log only (don't hijack the speech bubble)
+        appendSystemMessage((msg.text || '').slice(0, 80));
+      } else {
+        // System agent messages (delta payment confirmations, etc.): speech bubble
+        if (msg.text) setSpeechBubble(msg.text);
+      }
       break;
     }