diff --git a/src/basic_memory/api/v2/routers/project_router.py b/src/basic_memory/api/v2/routers/project_router.py
index bfec8303..9ba2adbf 100644
--- a/src/basic_memory/api/v2/routers/project_router.py
+++ b/src/basic_memory/api/v2/routers/project_router.py
@@ -320,7 +320,20 @@ async def resolve_project_identifier(
     )
 
     if not project:
-        raise HTTPException(status_code=404, detail=f"Project not found: '{data.identifier}'")
+        detail = f"Project not found: '{data.identifier}'"
+        # Trigger: resolution missed and the projects table is empty.
+        # Why: a fresh install bootstraps config.json's default project before any
+        #      reconciliation has created database rows (the one-shot CLI never runs
+        #      the server lifespan), so the first read fails on the configured
+        #      default and the bare not-found message reads as a broken install
+        #      rather than a missing first-run step (#974 follow-up).
+        # Outcome: the error names the setup command instead.
+        if not await project_repository.find_all(limit=1, use_load_options=False):
+            detail = (
+                f"{detail}. No projects are set up yet — run "
+                "'basic-memory project add <name> <path>' to create one."
+            )
+        raise HTTPException(status_code=404, detail=detail)
 
     return ProjectResolveResponse(
         external_id=project.external_id,
diff --git a/tests/api/v2/test_project_router.py b/tests/api/v2/test_project_router.py
index 763fc0bb..9b46f681 100644
--- a/tests/api/v2/test_project_router.py
+++ b/tests/api/v2/test_project_router.py
@@ -445,6 +445,41 @@ async def test_resolve_project_not_found(client: AsyncClient, v2_projects_url):
     assert "not found" in response.json()["detail"].lower()
 
 
+@pytest.mark.asyncio
+async def test_resolve_project_not_found_fresh_install_names_setup_command(
+    client: AsyncClient, v2_projects_url, project_repository
+):
+    """#974 follow-up: a fresh install fails its first read with a bare not-found.
+
+    config.json bootstraps a "main" default before any reconciliation has created
+    database rows (the one-shot CLI never runs the server lifespan), so resolving
+    the configured default 404s. With an empty projects table the error must point
+    at first-run setup instead of reading like a broken install.
+    """
+    for project in await project_repository.find_all():
+        await project_repository.delete(project.id)
+
+    response = await client.post(f"{v2_projects_url}/resolve", json={"identifier": "main"})
+
+    assert response.status_code == 404
+    detail = response.json()["detail"]
+    assert detail.startswith("Project not found: 'main'")
+    assert "basic-memory project add" in detail
+
+
+@pytest.mark.asyncio
+async def test_resolve_project_not_found_with_projects_keeps_plain_message(
+    client: AsyncClient, test_project: Project, v2_projects_url
+):
+    """A miss against a populated projects table stays a plain not-found."""
+    response = await client.post(
+        f"{v2_projects_url}/resolve", json={"identifier": "nonexistent-project"}
+    )
+
+    assert response.status_code == 404
+    assert response.json()["detail"] == "Project not found: 'nonexistent-project'"
+
+
 @pytest.mark.asyncio
 async def test_resolve_project_empty_identifier(client: AsyncClient, v2_projects_url):
     """Test resolving with empty identifier returns 422."""