diff --git a/backend/app/services/tag_service.py b/backend/app/services/tag_service.py
index 9f7a0e6..fc0e924 100644
--- a/backend/app/services/tag_service.py
+++ b/backend/app/services/tag_service.py
@@ -13,6 +13,19 @@ from ..models.tag_allowlist import TagAllowlist
 from ..models.tag_reference_embedding import TagReferenceEmbedding
 
 
+def normalize_tag_name(name: str) -> str:
+    """Canonical tag form (#701): collapse whitespace + Title Case.
+
+    Per-word capitalize (NOT str.title(), which mangles apostrophes:
+    don't → Don'T). Lowercasing the word tail also folds ALL-CAPS input
+    (HATSUNE MIKU → Hatsune Miku); acronym casing is sacrificed, an accepted
+    Title-Case trade-off (operator-chosen 2026-06-06).
+    """
+    return " ".join(
+        w[:1].upper() + w[1:].lower() for w in (name or "").split()
+    )
+
+
 class TagValidationError(ValueError):
     """Raised when tag construction breaks the kind/fandom rules."""
 
@@ -71,7 +84,7 @@ class TagService:
         - if fandom_id is set, the referenced tag must exist and have
           kind == TagKind.fandom
         """
-        name = name.strip()
+        name = normalize_tag_name(name)
         if not name:
             raise TagValidationError("Tag name cannot be empty")
 
@@ -93,13 +106,17 @@ class TagService:
         # inserts; without the savepoint the outer transaction would
         # poison and the calling request crashes. Mirrors
         # importer._get_or_create.
+        # Case-insensitive match (#701): a normalized (Title Case) input must
+        # find an existing differently-cased tag instead of forking a duplicate.
         stmt = (
             select(Tag)
-            .where(Tag.name == name)
+            .where(func.lower(Tag.name) == name.lower())
             .where(Tag.kind == kind)
             .where(
                 Tag.fandom_id.is_(None) if fandom_id is None else Tag.fandom_id == fandom_id
             )
+            .order_by(Tag.id)
+            .limit(1)
         )
         existing = (await self.session.execute(stmt)).scalar_one_or_none()
         if existing:
@@ -242,16 +259,18 @@ class TagService:
         with an existing tag of the same (kind, fandom_id) — the API turns
         that into a 409 merge hint.
         """
-        new_name = new_name.strip()
+        new_name = normalize_tag_name(new_name)
         if not new_name:
             raise TagValidationError("Tag name cannot be empty")
         tag = await self.session.get(Tag, tag_id)
         if tag is None:
             raise TagValidationError(f"Tag {tag_id} not found")
 
+        # Case-insensitive clash (#701) — colliding with a differently-cased tag
+        # is still a merge, not a silent fork.
         clash_stmt = (
             select(Tag)
-            .where(Tag.name == new_name)
+            .where(func.lower(Tag.name) == new_name.lower())
             .where(Tag.kind == tag.kind)
             .where(
                 Tag.fandom_id.is_(None)
@@ -259,6 +278,8 @@ class TagService:
                 else Tag.fandom_id == tag.fandom_id
             )
             .where(Tag.id != tag_id)
+            .order_by(Tag.id)
+            .limit(1)
         )
         clash = (await self.session.execute(clash_stmt)).scalar_one_or_none()
         if clash is not None:
diff --git a/tests/test_tag_service.py b/tests/test_tag_service.py
index a8ceb16..d427ffd 100644
--- a/tests/test_tag_service.py
+++ b/tests/test_tag_service.py
@@ -59,6 +59,19 @@ async def test_character_with_fandom(db):
     assert char.fandom_id == fandom.id
 
 
+@pytest.mark.asyncio
+async def test_find_or_create_titlecases_and_dedups_case_insensitive(db):
+    """#701: tags normalize to Title Case + collapsed whitespace on create, and a
+    differently-cased entry finds the existing tag instead of forking."""
+    svc = TagService(db)
+    t1 = await svc.find_or_create("hatsune miku", TagKind.character)
+    assert t1.name == "Hatsune Miku"
+    t2 = await svc.find_or_create("HATSUNE   miku", TagKind.character)
+    assert t2.id == t1.id  # case + whitespace variant → same tag, no fork
+    g = await svc.find_or_create("  looking   at  viewer ", TagKind.general)
+    assert g.name == "Looking At Viewer"
+
+
 @pytest.mark.asyncio
 async def test_character_same_name_different_fandoms(db):
     svc = TagService(db)