diff --git a/docs/agent-payment-guard-service.md b/docs/agent-payment-guard-service.md
new file mode 100644
index 0000000..bdbe7ac
--- /dev/null
+++ b/docs/agent-payment-guard-service.md
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+# Agent Payment Guard Service (Local HTTP)
+
+This service exposes ProofPath Agent Payment Guard over local HTTP so an external AI agent runtime can request an authorization decision before execution.
+
+## Start service
+
+```bash
+python3 examples/agent-payment-guard/payment_guard_service.py --host 127.0.0.1 --port 8787
+```
+
+## Health check
+
+```bash
+curl -sS http://127.0.0.1:8787/v1/health | python3 -m json.tool
+```
+
+Expected response:
+
+```json
+{
+  "status": "ok",
+  "surface": "agent-payment-guard-service",
+  "version": "0.1"
+}
+```
+
+## Evaluate a proposal (enforce mode)
+
+```bash
+curl -sS -X POST http://127.0.0.1:8787/v1/payment-proposals/evaluate \
+  -H 'content-type: application/json' \
+  -d "$(python3 - <<'PY'
+import json
+proposal = json.load(open('examples/agent-payment-guard/payment_proposal.valid_micro_payment.json', encoding='utf-8'))
+envelope = json.load(open('examples/agent-payment-guard/intent_envelopes/intent.valid.json', encoding='utf-8'))
+print(json.dumps({'mode':'enforce','proposal':proposal,'intent_envelope':envelope}))
+PY
+)" | python3 -m json.tool
+```
+
+Enforce semantics:
+- `ACCEPT` => `execution_allowed=true`, `would_block=false`
+- `HOLD` / `BLOCK` => `execution_allowed=false`, `would_block=true`
+
+## Evaluate a proposal (shadow mode)
+
+```bash
+curl -sS -X POST http://127.0.0.1:8787/v1/payment-proposals/evaluate \
+  -H 'content-type: application/json' \
+  -d "$(python3 - <<'PY'
+import json
+proposal = json.load(open('examples/agent-payment-guard/payment_proposal.asset_not_allowed.json', encoding='utf-8'))
+print(json.dumps({'mode':'shadow','proposal':proposal,'intent_envelope':None}))
+PY
+)" | python3 -m json.tool
+```
+
+Shadow semantics:
+- `ACCEPT` => `execution_allowed=true`, `would_block=false`
+- `HOLD` / `BLOCK` => `execution_allowed=true`, `would_block=true`
+
+Shadow mode always writes an audit record with actual decision and reason.
+
+## Read recent audit records
+
+```bash
+curl -sS 'http://127.0.0.1:8787/v1/audit/records?limit=20' | python3 -m json.tool
+```
+
+Records come from `.proofpath/audit.jsonl` and include hash chaining (`previous_hash`, `hash`).
+
+## Local validation
+
+```bash
+bash examples/agent-payment-guard/run_demo_check.sh
+bash examples/agent-payment-guard/run_service_check.sh
+python3 scripts/verify_audit_log.py .proofpath/audit.jsonl
+```
diff --git a/examples/agent-payment-guard/payment_guard_service.py b/examples/agent-payment-guard/payment_guard_service.py
new file mode 100644
index 0000000..971be09
--- /dev/null
+++ b/examples/agent-payment-guard/payment_guard_service.py
@@ -0,0 +1,173 @@
+#!/usr/bin/env python3
+from __future__ import annotations
+
+import argparse
+import json
+from http import HTTPStatus
+from http.server import BaseHTTPRequestHandler, ThreadingHTTPServer
+from pathlib import Path
+from typing import Any, Dict, List, Tuple
+from urllib.parse import parse_qs, urlparse
+
+from payment_guard import append_audit, decide, get_previous_hash, load_json
+
+
+DEFAULT_HOST = "127.0.0.1"
+DEFAULT_PORT = 8787
+
+
+def parse_mode(raw: Any) -> str:
+    mode = str(raw or "enforce").strip().lower()
+    if mode not in {"enforce", "shadow"}:
+        raise ValueError("mode must be 'enforce' or 'shadow'")
+    return mode
+
+
+def execution_flags(mode: str, decision: str) -> Tuple[bool, bool]:
+    if mode == "enforce":
+        allowed = decision == "ACCEPT"
+        return allowed, not allowed
+
+    # shadow mode
+    would_block = decision in {"HOLD", "BLOCK"}
+    return True, would_block
+
+
+def read_audit_records(path: Path, limit: int) -> List[Dict[str, Any]]:
+    if not path.exists():
+        return []
+    lines = [line for line in path.read_text(encoding="utf-8").splitlines() if line.strip()]
+    selected = lines[-limit:]
+    return [json.loads(line) for line in selected]
+
+
+class PaymentGuardServiceHandler(BaseHTTPRequestHandler):
+    server_version = "AgentPaymentGuardService/0.1"
+
+    def do_GET(self) -> None:  # noqa: N802
+        parsed = urlparse(self.path)
+        if parsed.path == "/v1/health":
+            self._send_json(
+                HTTPStatus.OK,
+                {"status": "ok", "surface": "agent-payment-guard-service", "version": "0.1"},
+            )
+            return
+
+        if parsed.path == "/v1/audit/records":
+            query = parse_qs(parsed.query)
+            try:
+                limit = int(query.get("limit", ["20"])[0])
+            except ValueError:
+                self._send_json(HTTPStatus.BAD_REQUEST, {"error": "limit must be an integer"})
+                return
+            limit = min(max(limit, 1), 100)
+            records = read_audit_records(self.server.audit_path, limit)
+            self._send_json(HTTPStatus.OK, {"records": records, "count": len(records), "limit": limit})
+            return
+
+        self._send_json(HTTPStatus.NOT_FOUND, {"error": "not found"})
+
+    def do_POST(self) -> None:  # noqa: N802
+        parsed = urlparse(self.path)
+        if parsed.path != "/v1/payment-proposals/evaluate":
+            self._send_json(HTTPStatus.NOT_FOUND, {"error": "not found"})
+            return
+
+        payload = self._read_json_body()
+        if isinstance(payload, tuple):
+            status, body = payload
+            self._send_json(status, body)
+            return
+
+        try:
+            mode = parse_mode(payload.get("mode"))
+        except ValueError as exc:
+            self._send_json(HTTPStatus.BAD_REQUEST, {"error": str(exc)})
+            return
+
+        proposal = payload.get("proposal")
+        if not isinstance(proposal, dict):
+            self._send_json(HTTPStatus.BAD_REQUEST, {"error": "proposal must be an object"})
+            return
+
+        envelope = payload.get("intent_envelope")
+        if envelope is not None and not isinstance(envelope, dict):
+            self._send_json(HTTPStatus.BAD_REQUEST, {"error": "intent_envelope must be an object or null"})
+            return
+
+        decision, reason, intent_meta = decide(
+            proposal=proposal,
+            policy=self.server.policy,
+            envelope=envelope,
+            strict_mode=(mode == "enforce"),
+            audit_path=self.server.audit_path,
+        )
+        append_audit(self.server.audit_path, proposal, decision, reason, intent_meta)
+        audit_hash = get_previous_hash(self.server.audit_path)
+        execution_allowed, would_block = execution_flags(mode, decision)
+
+        self._send_json(
+            HTTPStatus.OK,
+            {
+                "mode": mode,
+                "decision": decision,
+                "reason": reason,
+                "execution_allowed": execution_allowed,
+                "would_block": would_block,
+                "audit_hash": audit_hash,
+            },
+        )
+
+    def _read_json_body(self) -> Dict[str, Any] | Tuple[HTTPStatus, Dict[str, str]]:
+        try:
+            content_length = int(self.headers.get("Content-Length", "0"))
+        except ValueError:
+            return HTTPStatus.BAD_REQUEST, {"error": "invalid content length"}
+
+        raw = self.rfile.read(content_length)
+        try:
+            payload = json.loads(raw.decode("utf-8"))
+        except (UnicodeDecodeError, json.JSONDecodeError):
+            return HTTPStatus.BAD_REQUEST, {"error": "invalid JSON body"}
+
+        if not isinstance(payload, dict):
+            return HTTPStatus.BAD_REQUEST, {"error": "request body must be an object"}
+        return payload
+
+    def _send_json(self, status: HTTPStatus, payload: Dict[str, Any]) -> None:
+        encoded = json.dumps(payload, separators=(",", ":")).encode("utf-8")
+        self.send_response(status)
+        self.send_header("Content-Type", "application/json")
+        self.send_header("Content-Length", str(len(encoded)))
+        self.end_headers()
+        self.wfile.write(encoded)
+
+    def log_message(self, format: str, *args: Any) -> None:
+        return
+
+
+def main() -> int:
+    parser = argparse.ArgumentParser()
+    parser.add_argument("--host", default=DEFAULT_HOST)
+    parser.add_argument("--port", type=int, default=DEFAULT_PORT)
+    parser.add_argument("--policy", default="examples/agent-payment-guard/payment_policy.json")
+    parser.add_argument("--audit-path", default=".proofpath/audit.jsonl")
+    args = parser.parse_args()
+
+    policy = load_json(Path(args.policy))
+    server = ThreadingHTTPServer((args.host, args.port), PaymentGuardServiceHandler)
+    server.policy = policy
+    server.audit_path = Path(args.audit_path)
+
+    print(f"Agent Payment Guard service listening on http://{args.host}:{args.port}")
+    try:
+        server.serve_forever()
+    except KeyboardInterrupt:
+        pass
+    finally:
+        server.server_close()
+    return 0
+
+
+if __name__ == "__main__":
+    raise SystemExit(main())
diff --git a/examples/agent-payment-guard/run_service_check.sh b/examples/agent-payment-guard/run_service_check.sh
new file mode 100755
index 0000000..b877470
--- /dev/null
+++ b/examples/agent-payment-guard/run_service_check.sh
@@ -0,0 +1,46 @@
+#!/usr/bin/env bash
+set -euo pipefail
+
+ROOT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")/../.." && pwd)"
+cd "$ROOT_DIR"
+
+rm -f .proofpath/audit.jsonl
+
+HOST="127.0.0.1"
+PORT="18787"
+SERVICE="examples/agent-payment-guard/payment_guard_service.py"
+
+python3 "$SERVICE" --host "$HOST" --port "$PORT" >/tmp/payment_guard_service.log 2>&1 &
+SERVICE_PID=$!
+cleanup() {
+  kill "$SERVICE_PID" >/dev/null 2>&1 || true
+}
+trap cleanup EXIT
+
+for _ in $(seq 1 50); do
+  if curl -fsS "http://$HOST:$PORT/v1/health" >/dev/null; then
+    break
+  fi
+  sleep 0.1
+done
+curl -fsS "http://$HOST:$PORT/v1/health" | python3 -c 'import json,sys; r=json.load(sys.stdin); assert r["status"]=="ok"; assert r["surface"]=="agent-payment-guard-service"; assert r["version"]=="0.1"'
+
+VALID_INTENT=$(cat examples/agent-payment-guard/intent_envelopes/intent.valid.json)
+VALID_PROPOSAL=$(cat examples/agent-payment-guard/payment_proposal.valid_micro_payment.json)
+
+curl -fsS -X POST "http://$HOST:$PORT/v1/payment-proposals/evaluate" \
+  -H 'content-type: application/json' \
+  -d "{\"mode\":\"enforce\",\"proposal\":$VALID_PROPOSAL,\"intent_envelope\":$VALID_INTENT}" \
+  | python3 -c 'import json,sys; r=json.load(sys.stdin); assert r["mode"]=="enforce"; assert r["decision"]=="ACCEPT"; assert r["execution_allowed"] is True; assert r["would_block"] is False; assert r["audit_hash"].startswith("sha256:")'
+
+BAD_PROPOSAL=$(cat examples/agent-payment-guard/payment_proposal.asset_not_allowed.json)
+curl -fsS -X POST "http://$HOST:$PORT/v1/payment-proposals/evaluate" \
+  -H 'content-type: application/json' \
+  -d "{\"mode\":\"shadow\",\"proposal\":$BAD_PROPOSAL,\"intent_envelope\":null}" \
+  | python3 -c 'import json,sys; r=json.load(sys.stdin); assert r["mode"]=="shadow"; assert r["decision"]=="BLOCK"; assert r["execution_allowed"] is True; assert r["would_block"] is True; assert r["audit_hash"].startswith("sha256:")'
+
+curl -fsS "http://$HOST:$PORT/v1/audit/records" | python3 -c 'import json,sys; r=json.load(sys.stdin); assert r["count"]==2; assert len(r["records"])==2; assert r["records"][0]["decision"]=="ACCEPT"; assert r["records"][1]["decision"]=="BLOCK"'
+
+python3 scripts/verify_audit_log.py .proofpath/audit.jsonl >/dev/null
+
+echo "Agent Payment Guard service check passed."