diff --git a/scripts/init.js b/scripts/init.js
index 72e4a4c9..053955ae 100755
--- a/scripts/init.js
+++ b/scripts/init.js
@@ -34,6 +34,7 @@ import {
   initializeBYOKUser,
   initializeHostedUser,
 } from "./modules/user-management.js";
+import { ensureConfigFileExists } from "./modules/config-manager.js";
 
 const __filename = fileURLToPath(import.meta.url);
 const __dirname = dirname(__filename);
@@ -391,6 +392,9 @@ async function initializeProject(options = {}) {
     let userSetupResult = null;
     let isGatewayAvailable = false;
 
+    // Ensure .taskmasterconfig exists before checking gateway availability
+    ensureConfigFileExists(process.cwd());
+
     // Try to initialize user, but don't throw errors if it fails
     try {
       userSetupResult = await initializeUser(process.cwd());
@@ -452,6 +456,9 @@ async function initializeProject(options = {}) {
       let userSetupResult = null;
       let isGatewayAvailable = false;
 
+      // Ensure .taskmasterconfig exists before checking gateway availability
+      ensureConfigFileExists(process.cwd());
+
       try {
         userSetupResult = await initializeUser(process.cwd());
         if (userSetupResult.success) {
@@ -866,7 +873,12 @@ function configureTaskmasterConfig(
     // Store account-specific configuration
     config.account.mode = selectedMode;
     config.account.userId = userId || null;
-    config.account.email = gatewayRegistration?.email || "";
+
+    // Only set email if not already present (initializeUser may have already set it)
+    if (!config.account.email) {
+      config.account.email = gatewayRegistration?.email || "";
+    }
+
     config.account.telemetryEnabled = selectedMode === "hosted";
 
     // Store remaining global config items
diff --git a/scripts/modules/config-manager.js b/scripts/modules/config-manager.js
index 24842f32..0d1c55fd 100644
--- a/scripts/modules/config-manager.js
+++ b/scripts/modules/config-manager.js
@@ -808,6 +808,57 @@ function getMode(explicitRoot = null) {
   return config.account?.mode || "byok";
 }
 
+/**
+ * Ensures that the .taskmasterconfig file exists, creating it with defaults if it doesn't.
+ * This is called early in initialization to prevent chicken-and-egg problems.
+ * @param {string|null} explicitRoot - Optional explicit path to the project root
+ * @returns {boolean} True if file exists or was created successfully, false otherwise
+ */
+function ensureConfigFileExists(explicitRoot = null) {
+  // ---> Determine root path reliably (following existing pattern) <---
+  let rootPath = explicitRoot;
+  if (explicitRoot === null || explicitRoot === undefined) {
+    // Logic matching _loadAndValidateConfig and other functions
+    const foundRoot = findProjectRoot(); // *** Explicitly call findProjectRoot ***
+    if (!foundRoot) {
+      console.warn(
+        chalk.yellow(
+          "Warning: Could not determine project root for config file creation."
+        )
+      );
+      return false;
+    }
+    rootPath = foundRoot;
+  }
+  // ---> End determine root path logic <---
+
+  const configPath = path.join(rootPath, CONFIG_FILE_NAME);
+
+  // If file already exists, we're good
+  if (fs.existsSync(configPath)) {
+    return true;
+  }
+
+  try {
+    // Create the default config file (following writeConfig pattern)
+    fs.writeFileSync(configPath, JSON.stringify(defaultConfig, null, 2));
+    console.log(chalk.blue(`ℹ️ Created default .taskmasterconfig file`));
+
+    // Clear any cached config to ensure fresh load
+    loadedConfig = null;
+    loadedConfigRoot = null;
+
+    return true;
+  } catch (error) {
+    console.error(
+      chalk.red(
+        `Error creating default .taskmasterconfig file: ${error.message}`
+      )
+    );
+    return false;
+  }
+}
+
 export {
   // Core config access
   getConfig,
@@ -856,4 +907,6 @@ export {
   getTelemetryEnabled,
   getUserEmail,
   getMode,
+  // New function
+  ensureConfigFileExists,
 };
diff --git a/tests/unit/config-manager.test.js b/tests/unit/config-manager.test.js
index ede4af75..4a4c2233 100644
--- a/tests/unit/config-manager.test.js
+++ b/tests/unit/config-manager.test.js
@@ -641,3 +641,52 @@ describe("getAllProviders", () => {
 
 // Note: Tests for setMainModel, setResearchModel were removed as the functions were removed in the implementation.
 // If similar setter functions exist, add tests for them following the writeConfig pattern.
+
+describe("ensureConfigFileExists", () => {
+  it("should create .taskmasterconfig file if it doesn't exist", () => {
+    // Override the default fs mocks for this test
+    fsExistsSyncSpy.mockReturnValue(false);
+    fsWriteFileSyncSpy.mockImplementation(() => {}); // Success, no throw
+
+    const result = configManager.ensureConfigFileExists(MOCK_PROJECT_ROOT);
+
+    expect(result).toBe(true);
+    expect(fsWriteFileSyncSpy).toHaveBeenCalledWith(
+      MOCK_CONFIG_PATH,
+      JSON.stringify(DEFAULT_CONFIG, null, 2)
+    );
+  });
+
+  it("should return true if .taskmasterconfig file already exists", () => {
+    // Mock file exists (this is the default, but let's be explicit)
+    fsExistsSyncSpy.mockReturnValue(true);
+
+    const result = configManager.ensureConfigFileExists(MOCK_PROJECT_ROOT);
+
+    expect(result).toBe(true);
+    expect(fsWriteFileSyncSpy).not.toHaveBeenCalled();
+  });
+
+  it("should return false if project root cannot be determined", () => {
+    // Override the default findProjectRoot mock to return null for this test
+    mockFindProjectRoot.mockReturnValue(null);
+
+    const result = configManager.ensureConfigFileExists(); // No explicitRoot provided
+
+    expect(result).toBe(false);
+    expect(fsWriteFileSyncSpy).not.toHaveBeenCalled();
+  });
+
+  it("should handle write errors gracefully", () => {
+    // Mock file doesn't exist
+    fsExistsSyncSpy.mockReturnValue(false);
+    // Mock write operation to throw error
+    fsWriteFileSyncSpy.mockImplementation(() => {
+      throw new Error("Permission denied");
+    });
+
+    const result = configManager.ensureConfigFileExists(MOCK_PROJECT_ROOT);
+
+    expect(result).toBe(false);
+  });
+});