diff --git a/src/app/api/setup-status/route.ts b/src/app/api/setup-status/route.ts
index ba34855b8..081568601 100644
--- a/src/app/api/setup-status/route.ts
+++ b/src/app/api/setup-status/route.ts
@@ -51,6 +51,10 @@ function check(id: SetupCheckId, label: string, status: SetupCheckStatus, detail
   return { id, label, status, detail };
 }
 
+function projectSetupCheckStatus(status: ReturnType<typeof checkSupabaseProjectConfig>["status"]) {
+  return status === "ready" || status === "warning" ? "ready" : "needs_setup";
+}
+
 async function readSupabaseAvailability(supabase: AdminClient | null) {
   if (!requiredSupabaseEnvPresent || !supabaseProjectCanBeQueried || !supabase) return null;
   const now = Date.now();
@@ -296,7 +300,7 @@ async function buildSetupStatusPayload(): Promise<SetupStatusPayload> {
       check(
         "project",
         "Clinical KB Database target",
-        supabaseProjectCheck.status === "ready" ? "ready" : "needs_setup",
+        projectSetupCheckStatus(supabaseProjectCheck.status),
         formatSupabaseProjectCheck(supabaseProjectCheck),
       ),
       check(
@@ -353,7 +357,7 @@ async function buildSetupStatusPayload(): Promise<SetupStatusPayload> {
     check(
       "project",
       "Clinical KB Database target",
-      supabaseProjectCheck.status === "ready" ? "ready" : "needs_setup",
+      projectSetupCheckStatus(supabaseProjectCheck.status),
       formatSupabaseProjectCheck(supabaseProjectCheck),
     ),
     schema,
diff --git a/tests/setup-status-route.test.ts b/tests/setup-status-route.test.ts
index f952b2ef8..aa7014c2f 100644
--- a/tests/setup-status-route.test.ts
+++ b/tests/setup-status-route.test.ts
@@ -52,4 +52,45 @@ describe("/api/setup-status", () => {
     expect(JSON.stringify(body)).not.toContain("service-role-key");
     expect(JSON.stringify(body)).not.toContain("openai-key");
   });
+
+  it("treats project warning status as ready when the URL ref matches", async () => {
+    vi.stubEnv("NODE_ENV", "production");
+    const from = vi.fn(async () => ({ error: null, data: [], count: 0 }));
+    const createAdminClient = vi.fn(() => ({
+      from,
+      rpc: vi.fn(),
+    }));
+    vi.doMock("@/lib/env", () => ({
+      env: {
+        NEXT_PUBLIC_SUPABASE_URL: "https://sjrfecxgysukkwxsowpy.supabase.co",
+        SUPABASE_SERVICE_ROLE_KEY: "service-role-key",
+        OPENAI_API_KEY: "openai-key",
+        SUPABASE_DOCUMENT_BUCKET: "clinical-documents",
+        SUPABASE_IMAGE_BUCKET: "clinical-images",
+        WORKER_POLL_MS: 1500,
+      },
+      isDemoMode: () => false,
+      isLocalNoAuthMode: () => false,
+    }));
+    vi.doMock("@/lib/supabase/admin", () => ({ createAdminClient }));
+    vi.doMock("@/lib/supabase/health", () => ({
+      probeSupabaseHealth: vi.fn(async () => ({ ok: true })),
+      isSupabaseUnavailableError: () => false,
+      formatSupabaseUnavailableError: (error: unknown) => String(error),
+    }));
+    vi.doMock("@/lib/supabase/project", () => ({
+      checkSupabaseProjectConfig: () => ({
+        status: "warning",
+        detail: 'Set SUPABASE_PROJECT_NAME="Clinical KB Database" in .env.local.',
+      }),
+      formatSupabaseProjectCheck: () => 'Set SUPABASE_PROJECT_NAME="Clinical KB Database" in .env.local.',
+    }));
+    const { GET } = await import("../src/app/api/setup-status/route");
+
+    const response = await GET(new Request("https://clinical.example/api/setup-status"));
+    const body = await response.json();
+
+    expect(response.status).toBe(200);
+    expect(body.checks).toEqual(expect.arrayContaining([expect.objectContaining({ id: "project", status: "ready" })]));
+  });
 });
diff --git a/tests/ui-smoke.spec.ts b/tests/ui-smoke.spec.ts
index 2eb32ebbf..cf0468ad2 100644
--- a/tests/ui-smoke.spec.ts
+++ b/tests/ui-smoke.spec.ts
@@ -930,26 +930,25 @@ test.describe("Clinical KB UI smoke coverage", () => {
   test("private mode unauthenticated dashboard gates real-mode search", async ({ page }) => {
     await page.setViewportSize({ width: 390, height: 820 });
     const answerRequests: string[] = [];
+    const unsafeLocalProjectPayload = {
+      appName: "Clinical KB",
+      projectId: "test-project",
+      identityPath: "/api/local-project-id",
+      localServer: {
+        currentUrl: "http://localhost:4298",
+        currentPort: 4298,
+        projectPortStart: 4298,
+        projectPortEnd: 53210,
+        safeLocalOrigin: false,
+        requestOrigin: null,
+        requestReferer: null,
+        unsafeLocalCaller: "http://localhost:3000",
+      },
+    };
+    await mockPrivateUnauthenticatedApi(page);
     await page.route(/\/api\/local-project-id$/, async (route) => {
-      await route.fulfill({
-        json: {
-          appName: "Clinical KB",
-          projectId: "test-project",
-          identityPath: "/api/local-project-id",
-          localServer: {
-            currentUrl: "http://localhost:4298",
-            currentPort: 4298,
-            projectPortStart: 4298,
-            projectPortEnd: 53210,
-            safeLocalOrigin: false,
-            requestOrigin: null,
-            requestReferer: null,
-            unsafeLocalCaller: "http://localhost:3000",
-          },
-        },
-      });
+      await route.fulfill({ json: unsafeLocalProjectPayload });
     });
-    await mockPrivateUnauthenticatedApi(page);
     await page.route(/\/api\/answer(?:\/stream)?(?:\?.*)?$/, async (route) => {
       answerRequests.push(route.request().url());
       await route.fulfill({ status: 401, json: { error: "Authentication required." } });