diff --git a/frontend/src/api/inception.ts b/frontend/src/api/inception.ts
new file mode 100644
index 0000000..05773e1
--- /dev/null
+++ b/frontend/src/api/inception.ts
@@ -0,0 +1,42 @@
+/** Project inception (milestone 297): what a project was decided to inherit. */
+import { apiGet, apiPost } from "@/api/client";
+
+export interface InceptionChoices {
+  exclude_always_on_rulebooks: number[];
+  subscribe_rulebooks: number[];
+  design_system_id: number | null;
+  seed_systems: boolean;
+}
+
+export interface InceptionRecord {
+  decided_at: string;
+  decided_by: number | null;
+  via: "mcp" | "ui" | "legacy";
+  choices: InceptionChoices;
+}
+
+export interface InceptionDefaults {
+  always_on_rulebooks: { id: number; title: string }[];
+  other_rulebooks: { id: number; title: string }[];
+  excluded_always_on: { id: number; title: string }[];
+  subscribed_rulebooks: { id: number; title: string }[];
+  design_system_id: number | null;
+  design_systems: { id: number; title: string }[];
+  systems: number;
+}
+
+export interface InceptionDecision {
+  project_id: number;
+  inception: InceptionRecord;
+  effects: { excluded: number[]; subscribed: number[]; design_system_id: number | null; systems_seeded: string[] };
+}
+
+export const emptyChoices = (): InceptionChoices => ({
+  exclude_always_on_rulebooks: [], subscribe_rulebooks: [], design_system_id: null, seed_systems: false,
+});
+
+export const fetchInceptionDefaults = (projectId: number) =>
+  apiGet<InceptionDefaults>(`/api/projects/${projectId}/inception/defaults`);
+
+export const decideInception = (projectId: number, choices: InceptionChoices) =>
+  apiPost<InceptionDecision>(`/api/projects/${projectId}/inception`, { choices });
diff --git a/frontend/src/api/rulebooks.ts b/frontend/src/api/rulebooks.ts
index 858d854..1c52447 100644
--- a/frontend/src/api/rulebooks.ts
+++ b/frontend/src/api/rulebooks.ts
@@ -71,6 +71,8 @@ export interface ApplicableRules {
   }[];
   truncated: boolean;
   subscribed_rulebooks: { id: number; title: string }[];
+  /** Always-on rulebooks this project opted out of at inception (milestone 297). */
+  excluded_always_on: { id: number; title: string }[];
 }
 
 // ── Rulebooks ───────────────────────────────────────────────────────
@@ -181,3 +183,14 @@ export async function suppressTopicForProject(projectId: number, topicId: number
 export async function unsuppressTopicForProject(projectId: number, topicId: number): Promise<void> {
   return apiDelete(`/api/projects/${projectId}/suppressions/topics/${topicId}`);
 }
+
+// ── Always-on exclusions (milestone 297) ────────────────────────────────────
+
+export async function excludeAlwaysOnRulebook(projectId: number, rulebookId: number): Promise<void> {
+  await apiPost(`/api/projects/${projectId}/exclusions/rulebooks/${rulebookId}`, {});
+}
+
+export async function includeAlwaysOnRulebook(projectId: number, rulebookId: number): Promise<void> {
+  await apiDelete(`/api/projects/${projectId}/exclusions/rulebooks/${rulebookId}`);
+}
+
diff --git a/frontend/src/components/InceptionCard.vue b/frontend/src/components/InceptionCard.vue
new file mode 100644
index 0000000..b37699b
--- /dev/null
+++ b/frontend/src/components/InceptionCard.vue
@@ -0,0 +1,189 @@
+<script setup lang="ts">
+/**
+ * The inception form (milestone 297): "what does this project inherit?"
+ *
+ * Two homes, one component. mode="create" rides the New-project modal's
+ * second step and only emits the choices (the project does not exist yet);
+ * mode="decide" sits on ProjectView for an undecided project, loads that
+ * project's current defaults, and records the decision itself.
+ */
+import { computed, onMounted, ref, watch } from "vue";
+import { apiErrorMessage } from "@/api/client";
+import { fetchDesignSystems } from "@/api/designSystems";
+import {
+  decideInception, emptyChoices, fetchInceptionDefaults,
+  type InceptionChoices, type InceptionDecision, type InceptionDefaults,
+} from "@/api/inception";
+import { listRulebooks } from "@/api/rulebooks";
+
+const props = withDefaults(defineProps<{
+  mode: "create" | "decide";
+  projectId?: number;
+  choices?: InceptionChoices;
+}>(), { projectId: 0, choices: undefined });
+
+const emit = defineEmits<{
+  "update:choices": [value: InceptionChoices];
+  decided: [decision: InceptionDecision];
+}>();
+
+const local = ref<InceptionChoices>(props.choices ? { ...props.choices } : emptyChoices());
+const alwaysOn = ref<{ id: number; title: string }[]>([]);
+const others = ref<{ id: number; title: string }[]>([]);
+const designSystems = ref<{ id: number; title: string }[]>([]);
+const systemsCount = ref(0);
+const loading = ref(true);
+const saving = ref(false);
+const error = ref("");
+
+function emitChoices() {
+  emit("update:choices", { ...local.value });
+}
+watch(local, emitChoices, { deep: true });
+
+async function load() {
+  loading.value = true;
+  error.value = "";
+  try {
+    if (props.mode === "decide" && props.projectId) {
+      const d: InceptionDefaults = await fetchInceptionDefaults(props.projectId);
+      alwaysOn.value = d.always_on_rulebooks;
+      others.value = d.other_rulebooks;
+      designSystems.value = d.design_systems;
+      systemsCount.value = d.systems;
+      // Start from what stands today so "record" without changes is a true inherit-all.
+      local.value = {
+        exclude_always_on_rulebooks: d.excluded_always_on.map((r) => r.id),
+        subscribe_rulebooks: d.subscribed_rulebooks.map((r) => r.id),
+        design_system_id: d.design_system_id,
+        seed_systems: false,
+      };
+    } else {
+      const [rulebooks, ds] = await Promise.all([listRulebooks(), fetchDesignSystems()]);
+      alwaysOn.value = rulebooks.filter((r) => r.always_on).map((r) => ({ id: r.id, title: r.title }));
+      others.value = rulebooks.filter((r) => !r.always_on).map((r) => ({ id: r.id, title: r.title }));
+      designSystems.value = ds.design_systems.map((d) => ({ id: d.id, title: d.title }));
+    }
+  } catch (e: unknown) {
+    error.value = apiErrorMessage(e, "Could not load what this project could inherit");
+  } finally {
+    loading.value = false;
+  }
+}
+
+function inherits(id: number): boolean {
+  return !local.value.exclude_always_on_rulebooks.includes(id);
+}
+function toggleInherit(id: number) {
+  const list = local.value.exclude_always_on_rulebooks;
+  local.value.exclude_always_on_rulebooks = list.includes(id) ? list.filter((x) => x !== id) : [...list, id];
+}
+function subscribed(id: number): boolean {
+  return local.value.subscribe_rulebooks.includes(id);
+}
+function toggleSubscribe(id: number) {
+  const list = local.value.subscribe_rulebooks;
+  local.value.subscribe_rulebooks = list.includes(id) ? list.filter((x) => x !== id) : [...list, id];
+}
+
+const nothingToDecide = computed(
+  () => !alwaysOn.value.length && !others.value.length && !designSystems.value.length,
+);
+
+async function record() {
+  if (!props.projectId) return;
+  saving.value = true;
+  error.value = "";
+  try {
+    const decision = await decideInception(props.projectId, local.value);
+    emit("decided", decision);
+  } catch (e: unknown) {
+    error.value = apiErrorMessage(e, "Could not record the decision");
+  } finally {
+    saving.value = false;
+  }
+}
+
+onMounted(load);
+</script>
+
+<template>
+  <section class="inception" aria-labelledby="inception-title">
+    <h3 id="inception-title" class="inception-title">What does this project inherit?</h3>
+    <p class="inception-lede">
+      A project's inheritance is a decision, not a default. Until it is recorded,
+      every always-on rulebook binds, nothing is subscribed, and there is no design
+      system or Systems.
+    </p>
+    <p v-if="loading" class="inception-muted">Loading…</p>
+    <p v-else-if="error" class="error-msg">{{ error }}</p>
+    <template v-else>
+      <div v-if="alwaysOn.length" class="inception-group">
+        <h4>Always-on rulebooks</h4>
+        <p class="inception-muted">Checked = inherits. Uncheck to exclude a rulebook for this project only.</p>
+        <label v-for="rb in alwaysOn" :key="rb.id" class="inception-choice">
+          <input type="checkbox" :checked="inherits(rb.id)" @change="toggleInherit(rb.id)" />
+          <span>{{ rb.title }}</span>
+        </label>
+      </div>
+      <div v-if="others.length" class="inception-group">
+        <h4>Subscribe to rulebooks</h4>
+        <label v-for="rb in others" :key="rb.id" class="inception-choice">
+          <input type="checkbox" :checked="subscribed(rb.id)" @change="toggleSubscribe(rb.id)" />
+          <span>{{ rb.title }}</span>
+        </label>
+      </div>
+      <div class="inception-group">
+        <h4>Design system</h4>
+        <select v-model="local.design_system_id" class="inception-select" aria-label="Design system">
+          <option :value="null">None</option>
+          <option v-for="ds in designSystems" :key="ds.id" :value="ds.id">{{ ds.title }}</option>
+        </select>
+      </div>
+      <div class="inception-group">
+        <label class="inception-choice">
+          <input type="checkbox" v-model="local.seed_systems" :disabled="systemsCount > 0" />
+          <span>
+            Seed the standard starter Systems (CI &amp; Release, Auth &amp; Access, Data Model &amp; Storage, …)
+            <em v-if="systemsCount > 0" class="inception-muted"> — this project already has {{ systemsCount }}</em>
+          </span>
+        </label>
+      </div>
+      <p v-if="nothingToDecide" class="inception-muted">
+        Nothing to inherit yet on this install — recording still settles the question.
+      </p>
+      <div v-if="mode === 'decide'" class="inception-actions">
+        <button class="btn-primary" :disabled="saving" @click="record">
+          {{ saving ? "Recording…" : "Record decision" }}
+        </button>
+      </div>
+    </template>
+  </section>
+</template>
+
+<style scoped>
+.inception {
+  background: var(--fs-surface-raised);
+  border: 1px solid var(--fs-border-color);
+  border-radius: var(--fs-radius-lg);
+  padding: 1.25rem 1.5rem;
+  margin-bottom: 1.5rem;
+}
+.inception-title { margin: 0 0 0.35rem; font-size: 1.05rem; }
+.inception-lede { margin: 0 0 1rem; color: var(--fs-text-secondary); font-size: 0.9rem; }
+.inception-muted { color: var(--fs-text-tertiary); font-size: 0.85rem; margin: 0 0 0.35rem; }
+.inception-group { margin-bottom: 1rem; }
+.inception-group h4 { margin: 0 0 0.35rem; font-size: 0.9rem; font-weight: 500; }
+.inception-choice { display: flex; align-items: flex-start; gap: 0.5rem; font-size: 0.9rem; margin: 0.25rem 0; }
+.inception-choice input { margin-top: 0.2rem; accent-color: var(--fs-accent); }
+.inception-select {
+  padding: 0.45rem 0.7rem;
+  border: 1px solid var(--fs-border-color);
+  border-radius: var(--fs-radius-sm);
+  background: var(--fs-surface-page);
+  color: var(--fs-text-primary);
+  font-size: 0.9rem;
+}
+.inception-actions { display: flex; justify-content: flex-end; margin-top: 0.5rem; }
+.error-msg { color: var(--fs-error); font-size: 0.9rem; }
+</style>
diff --git a/frontend/src/components/rules/ProjectRulesTab.vue b/frontend/src/components/rules/ProjectRulesTab.vue
index 4749279..cd989b0 100644
--- a/frontend/src/components/rules/ProjectRulesTab.vue
+++ b/frontend/src/components/rules/ProjectRulesTab.vue
@@ -2,10 +2,18 @@
 import { ref, onMounted, watch } from "vue";
 import { useRouter } from "vue-router";
 import {
-  getProjectApplicableRules, subscribeProject, unsubscribeProject,
-  listRulebooks, getRule, createProjectRule, deleteRule,
-  suppressRuleForProject, unsuppressRuleForProject,
-  suppressTopicForProject, unsuppressTopicForProject,
+  getProjectApplicableRules,
+  subscribeProject,
+  unsubscribeProject,
+  listRulebooks,
+  getRule,
+  createProjectRule,
+  deleteRule,
+  suppressRuleForProject,
+  unsuppressRuleForProject,
+  suppressTopicForProject,
+  unsuppressTopicForProject,
+  includeAlwaysOnRulebook,
 } from "@/api/rulebooks";
 import type { ApplicableRules, Rulebook } from "@/api/rulebooks";
 
@@ -35,6 +43,11 @@ async function subscribe(rulebookId: number) {
   await load();
 }
 
+async function includeBack(rulebookId: number) {
+  await includeAlwaysOnRulebook(props.projectId, rulebookId);
+  await load();
+}
+
 async function unsubscribe(rulebookId: number) {
   if (!confirm("Unsubscribe from this rulebook for this project?")) return;
   await unsubscribeProject(props.projectId, rulebookId);
@@ -172,6 +185,17 @@ watch(() => props.projectId, load);
       </div>
     </section>
 
+    <section v-if="applicable.excluded_always_on?.length" class="excluded">
+      <h3>Excluded always-on rulebooks</h3>
+      <p class="excluded-note">Opted out at inception — these do not bind this project.</p>
+      <div class="chips">
+        <span v-for="rb in applicable.excluded_always_on" :key="rb.id" class="chip chip-excluded">
+          <a @click="openInRulesView(rb.id)">{{ rb.title }}</a>
+          <button class="chip-remove" @click="includeBack(rb.id)" aria-label="Include again" title="Include again">↩</button>
+        </span>
+      </div>
+    </section>
+
     <section class="project-rules">
       <div class="section-head">
         <h3>Project rules</h3>
@@ -321,6 +345,9 @@ watch(() => props.projectId, load);
 </template>
 
 <style scoped>
+.excluded-note { margin: 0 0 0.5rem; color: var(--fs-text-tertiary); font-size: 0.85rem; }
+.chip-excluded { opacity: 0.8; text-decoration: line-through; }
+.chip-excluded .chip-remove { text-decoration: none; }
 .rules-tab { padding: 1rem; }
 h3 {
   font-size: 0.9em; opacity: 0.7; text-transform: uppercase; letter-spacing: 0.05em;
diff --git a/frontend/src/views/ProjectListView.vue b/frontend/src/views/ProjectListView.vue
index 7ed14fc..edd1632 100644
--- a/frontend/src/views/ProjectListView.vue
+++ b/frontend/src/views/ProjectListView.vue
@@ -1,7 +1,9 @@
 <script setup lang="ts">
 import { ref, computed, onMounted } from "vue";
 import { useRouter } from "vue-router";
-import { apiGet, apiPost } from "@/api/client";
+import { apiGet, apiPost, apiErrorMessage } from "@/api/client";
+import { emptyChoices, type InceptionChoices } from "@/api/inception";
+import InceptionCard from "@/components/InceptionCard.vue";
 import { useToastStore } from "@/stores/toast";
 import { milestoneColor } from "@/utils/palette";
 
@@ -47,6 +49,9 @@ const newTitle = ref("");
 const newDescription = ref("");
 const newGoal = ref("");
 const creating = ref(false);
+// Step 2 of the modal (milestone 297): what the new project inherits.
+const modalStep = ref<1 | 2>(1);
+const newInception = ref<InceptionChoices>(emptyChoices());
 
 const filteredProjects = computed(() => {
   if (activeTab.value === "all") return projects.value;
@@ -73,6 +78,8 @@ function openNewProjectModal() {
   newTitle.value = "";
   newDescription.value = "";
   newGoal.value = "";
+  modalStep.value = 1;
+  newInception.value = emptyChoices();
   showNewProjectModal.value = true;
 }
 
@@ -88,13 +95,15 @@ async function createProject() {
       title: newTitle.value.trim(),
       description: newDescription.value.trim() || undefined,
       goal: newGoal.value.trim() || undefined,
+      // The decision rides the create: a project made here is never undecided.
+      inception: newInception.value,
     });
     projects.value.unshift(project);
     showNewProjectModal.value = false;
     toast.show("Project created");
     router.push(`/projects/${project.id}`);
-  } catch {
-    toast.show("Failed to create project", "error");
+  } catch (e: unknown) {
+    toast.show(apiErrorMessage(e, "Failed to create project"), "error");
   } finally {
     creating.value = false;
   }
@@ -266,8 +275,9 @@ function overallPct(project: Project): { total: number; pct: number } {
     <teleport to="body">
       <div v-if="showNewProjectModal" class="modal-overlay" @click.self="closeModal">
         <div class="modal-card">
-          <h3 class="modal-title">New Project</h3>
-          <div class="modal-field">
+          <h3 class="modal-title">{{ modalStep === 1 ? "New Project" : "New Project — what it inherits" }}</h3>
+          <InceptionCard v-if="modalStep === 2" mode="create" v-model:choices="newInception" />
+          <div v-if="modalStep === 1" class="modal-field">
             <label>Title <span class="required">*</span></label>
             <input
               v-model="newTitle"
@@ -275,11 +285,11 @@ function overallPct(project: Project): { total: number; pct: number } {
               class="modal-input"
               placeholder="Project title"
               autofocus
-              @keydown.enter="createProject"
+              @keydown.enter="modalStep = 2"
               @keydown.escape="closeModal"
             />
           </div>
-          <div class="modal-field">
+          <div v-if="modalStep === 1" class="modal-field">
             <label>Goal</label>
             <input
               v-model="newGoal"
@@ -289,7 +299,7 @@ function overallPct(project: Project): { total: number; pct: number } {
               @keydown.escape="closeModal"
             />
           </div>
-          <div class="modal-field">
+          <div v-if="modalStep === 1" class="modal-field">
             <label>Description</label>
             <textarea
               v-model="newDescription"
@@ -301,7 +311,17 @@ function overallPct(project: Project): { total: number; pct: number } {
           </div>
           <div class="modal-actions">
             <button class="modal-btn" @click="closeModal">Cancel</button>
+            <button v-if="modalStep === 2" class="modal-btn" @click="modalStep = 1">Back</button>
             <button
+              v-if="modalStep === 1"
+              class="modal-btn modal-btn-primary"
+              @click="modalStep = 2"
+              :disabled="!newTitle.trim()"
+            >
+              Next
+            </button>
+            <button
+              v-else
               class="modal-btn modal-btn-primary"
               @click="createProject"
               :disabled="!newTitle.trim() || creating"
diff --git a/frontend/src/views/ProjectView.vue b/frontend/src/views/ProjectView.vue
index 5a0261c..55c678a 100644
--- a/frontend/src/views/ProjectView.vue
+++ b/frontend/src/views/ProjectView.vue
@@ -11,6 +11,9 @@ import ShareDialog from "@/components/ShareDialog.vue";
 import ProjectDesignTab from "@/components/ProjectDesignTab.vue";
 import ProjectRulesTab from "@/components/rules/ProjectRulesTab.vue";
 import SystemsSection from "@/components/SystemsSection.vue";
+import InceptionCard from "@/components/InceptionCard.vue";
+import { fmtDate } from "@/utils/dateFormat";
+import type { InceptionDecision, InceptionRecord } from "@/api/inception";
 import {
   fetchDesignSystems,
   setProjectDesignSystem,
@@ -50,6 +53,7 @@ interface Project {
   color: string | null;
   design_system_id: number | null;
   forge_connection_id: number | null;
+  inception?: InceptionRecord | null;
   permission?: string;
   created_at: string;
   updated_at: string;
@@ -75,6 +79,12 @@ interface NoteItem {
 const route = useRoute();
 const router = useRouter();
 const toast = useToastStore();
+
+function onInceptionDecided(decision: InceptionDecision) {
+  if (project.value) project.value.inception = decision.inception;
+  toast.show("Inheritance recorded");
+  void loadProject();
+}
 const tasksStore = useTasksStore();
 
 const project = ref<Project | null>(null);
@@ -695,6 +705,26 @@ async function confirmDelete() {
         </p>
       </div>
 
+      <!-- Inception (milestone 297): the owner of an undecided project is asked
+           what it inherits; once recorded, one line says what was decided. -->
+      <InceptionCard
+        v-if="project.inception == null && isProjectOwner"
+        mode="decide"
+        :project-id="projectId"
+        @decided="onInceptionDecided"
+      />
+      <p v-else-if="project.inception" class="inception-line">
+        Inheritance decided {{ fmtDate(project.inception.decided_at) }} via {{ project.inception.via }}
+        <template v-if="project.inception.choices.exclude_always_on_rulebooks.length">
+          · excludes {{ project.inception.choices.exclude_always_on_rulebooks.length }} always-on rulebook(s)
+        </template>
+        <template v-if="project.inception.choices.subscribe_rulebooks.length">
+          · subscribes {{ project.inception.choices.subscribe_rulebooks.length }}
+        </template>
+        · design system {{ project.inception.choices.design_system_id ? "#" + project.inception.choices.design_system_id : "none" }}
+        <template v-if="project.inception.choices.seed_systems"> · Systems seeded</template>
+      </p>
+
       <!-- Summary stat chips -->
       <div v-if="project.summary" class="summary-stats">
         <div class="stat-chip stat-todo">
@@ -1197,6 +1227,7 @@ async function confirmDelete() {
   min-width: 200px;
 }
 
+.inception-line { margin: 0 0 1rem; color: var(--fs-text-secondary); font-size: 0.85rem; }
 .project-title-input {
   flex: 1;
   font-size: 1.75rem;
diff --git a/src/scribe/routes/rulebooks.py b/src/scribe/routes/rulebooks.py
index 4c340b0..7d84987 100644
--- a/src/scribe/routes/rulebooks.py
+++ b/src/scribe/routes/rulebooks.py
@@ -288,6 +288,32 @@ async def unsuppress_project_topic(project_id: int, topic_id: int):
     return "", 204
 
 
+@rulebooks_bp.post("/projects/<int:project_id>/exclusions/rulebooks/<int:rulebook_id>")
+@login_required
+async def exclude_project_rulebook(project_id: int, rulebook_id: int):
+    """Opt the project out of a whole always-on rulebook (milestone 297)."""
+    try:
+        await rulebooks_svc.exclude_always_on_rulebook_for_project(
+            project_id=project_id, rulebook_id=rulebook_id, user_id=get_current_user_id(),
+        )
+    except ValueError as exc:
+        msg = str(exc)
+        return jsonify({"error": msg}), (400 if "not always-on" in msg else 404)
+    return "", 204
+
+
+@rulebooks_bp.delete("/projects/<int:project_id>/exclusions/rulebooks/<int:rulebook_id>")
+@login_required
+async def include_project_rulebook(project_id: int, rulebook_id: int):
+    try:
+        await rulebooks_svc.include_always_on_rulebook_for_project(
+            project_id=project_id, rulebook_id=rulebook_id, user_id=get_current_user_id(),
+        )
+    except ValueError as exc:
+        return jsonify({"error": str(exc)}), 404
+    return "", 204
+
+
 @rulebooks_bp.post("/projects/<int:project_id>/rules")
 @login_required
 async def create_project_rule(project_id: int):
diff --git a/tests/test_inception_rules.py b/tests/test_inception_rules.py
index effa931..4f1172f 100644
--- a/tests/test_inception_rules.py
+++ b/tests/test_inception_rules.py
@@ -57,3 +57,10 @@ async def test_session_context_names_the_excluded_always_on_rulebooks():
     assert lao.await_args.kwargs.get("project_id") == 9
     assert "Excluded for this project by its inception decision" in out["context"]
     assert "Design standards (#5)" in out["context"]
+
+
+def test_exclusion_routes_are_registered():
+    from scribe.app import create_app
+    rules = {r.rule for r in create_app().url_map.iter_rules()}
+    assert "/api/projects/<int:project_id>/exclusions/rulebooks/<int:rulebook_id>" in rules
+