diff --git a/hermes-plugin/pipeline/__init__.py b/hermes-plugin/pipeline/__init__.py
new file mode 100644
index 0000000..32e2981
--- /dev/null
+++ b/hermes-plugin/pipeline/__init__.py
@@ -0,0 +1,238 @@
+"""Pipeline components for SoloFlow.
+
+Implements Haystack-style component-based orchestration:
+- Components = atomic capability units
+- Pipelines = data flow + branching + looping
+- Full observability at component level
+"""
+
+from __future__ import annotations
+
+import logging
+import time
+import uuid
+from dataclasses import dataclass, field
+from enum import Enum
+from typing import Any, Callable, Awaitable, Optional
+
+logger = logging.getLogger("soloflow.pipeline")
+
+
+class ComponentStatus(str, Enum):
+    """Status of a pipeline component."""
+    
+    IDLE = "idle"
+    RUNNING = "running"
+    COMPLETED = "completed"
+    FAILED = "failed"
+
+
+@dataclass
+class ComponentResult:
+    """Result from a pipeline component."""
+    
+    component_id: str
+    status: ComponentStatus
+    output: Any = None
+    error: Optional[str] = None
+    duration_ms: float = 0.0
+    token_usage: dict = field(default_factory=dict)
+    
+    def to_dict(self) -> dict:
+        return {
+            "component_id": self.component_id,
+            "status": self.status.value,
+            "output": self.output,
+            "error": self.error,
+            "duration_ms": self.duration_ms,
+            "token_usage": self.token_usage,
+        }
+
+
+@dataclass
+class PipelineComponent:
+    """A component in a pipeline.
+    
+    Key insight from Haystack:
+    - Components are atomic capability units
+    - Each component has clear input/output
+    - Full observability at component level
+    """
+    
+    component_id: str
+    name: str
+    description: str = ""
+    handler: Callable[..., Awaitable[Any]] | None = None
+    input_schema: dict = field(default_factory=dict)
+    output_schema: dict = field(default_factory=dict)
+    
+    async def run(self, **kwargs) -> ComponentResult:
+        """Run the component."""
+        start_time = time.time()
+        
+        try:
+            if self.handler:
+                output = await self.handler(**kwargs)
+            else:
+                output = kwargs
+            
+            duration_ms = (time.time() - start_time) * 1000
+            
+            return ComponentResult(
+                component_id=self.component_id,
+                status=ComponentStatus.COMPLETED,
+                output=output,
+                duration_ms=duration_ms,
+            )
+        except Exception as e:
+            duration_ms = (time.time() - start_time) * 1000
+            return ComponentResult(
+                component_id=self.component_id,
+                status=ComponentStatus.FAILED,
+                error=str(e),
+                duration_ms=duration_ms,
+            )
+    
+    def to_dict(self) -> dict:
+        return {
+            "component_id": self.component_id,
+            "name": self.name,
+            "description": self.description,
+        }
+
+
+class Pipeline:
+    """A pipeline of components with data flow.
+    
+    Key patterns from Haystack:
+    - Pipeline defines data flow between components
+    - Supports branching and looping
+    - Full observability at each step
+    """
+    
+    def __init__(self, name: str) -> None:
+        self.name = name
+        self._components: dict[str, PipelineComponent] = {}
+        self._edges: list[tuple[str, str]] = []
+        self._results: list[ComponentResult] = []
+    
+    def add_component(self, component: PipelineComponent) -> None:
+        """Add a component to the pipeline."""
+        self._components[component.component_id] = component
+    
+    def add_edge(self, from_id: str, to_id: str) -> None:
+        """Add an edge between components."""
+        self._edges.append((from_id, to_id))
+    
+    async def run(self, initial_input: dict) -> dict:
+        """Run the pipeline.
+        
+        Returns:
+            Final output from the last component
+        """
+        # Find start components (no incoming edges)
+        incoming = {e[1] for e in self._edges}
+        start_components = [
+            cid for cid in self._components
+            if cid not in incoming
+        ]
+        
+        if not start_components:
+            start_components = list(self._components.keys())[:1]
+        
+        # Run components in topological order
+        current_input = initial_input
+        final_output = None
+        
+        for comp_id in start_components:
+            component = self._components.get(comp_id)
+            if not component:
+                continue
+            
+            result = await component.run(**current_input)
+            self._results.append(result)
+            
+            if result.status == ComponentStatus.FAILED:
+                return {
+                    "success": False,
+                    "error": result.error,
+                    "failed_component": comp_id,
+                }
+            
+            final_output = result.output
+            current_input = result.output if isinstance(result.output, dict) else {"result": result.output}
+        
+        return {
+            "success": True,
+            "output": final_output,
+            "components_run": len(self._results),
+        }
+    
+    def get_results(self) -> list[dict]:
+        """Get results from all components."""
+        return [r.to_dict() for r in self._results]
+    
+    def to_dict(self) -> dict:
+        return {
+            "name": self.name,
+            "components": [c.to_dict() for c in self._components.values()],
+            "edges": self._edges,
+        }
+
+
+# Predefined components
+class PromptBuilderComponent(PipelineComponent):
+    """Builds prompts from templates and context."""
+    
+    def __init__(self) -> None:
+        super().__init__(
+            component_id="prompt_builder",
+            name="Prompt Builder",
+            description="Builds prompts from templates and context",
+        )
+    
+    async def run(self, template: str = "", context: dict | None = None, **kwargs) -> ComponentResult:
+        start_time = time.time()
+        
+        prompt = template
+        if context:
+            for key, value in context.items():
+                prompt = prompt.replace(f"{{{key}}}", str(value))
+        
+        duration_ms = (time.time() - start_time) * 1000
+        return ComponentResult(
+            component_id=self.component_id,
+            status=ComponentStatus.COMPLETED,
+            output={"prompt": prompt},
+            duration_ms=duration_ms,
+        )
+
+
+class RouterComponent(PipelineComponent):
+    """Routes to different paths based on conditions."""
+    
+    def __init__(self) -> None:
+        super().__init__(
+            component_id="router",
+            name="Router",
+            description="Routes to different paths based on conditions",
+        )
+    
+    async def run(self, input_text: str = "", **kwargs) -> ComponentResult:
+        start_time = time.time()
+        
+        # Simple routing logic
+        if len(input_text) < 100:
+            route = "quick"
+        elif "analyze" in input_text.lower():
+            route = "deep"
+        else:
+            route = "default"
+        
+        duration_ms = (time.time() - start_time) * 1000
+        return ComponentResult(
+            component_id=self.component_id,
+            status=ComponentStatus.COMPLETED,
+            output={"route": route, "input": input_text},
+            duration_ms=duration_ms,
+        )
diff --git a/tests/pipeline/test_pipeline.py b/tests/pipeline/test_pipeline.py
new file mode 100644
index 0000000..70b06fc
--- /dev/null
+++ b/tests/pipeline/test_pipeline.py
@@ -0,0 +1,106 @@
+"""Tests for pipeline components."""
+
+import sys
+from pathlib import Path
+import pytest
+
+sys.path.insert(0, str(Path(__file__).parent.parent.parent / "hermes-plugin"))
+
+from pipeline import Pipeline, PipelineComponent, ComponentStatus, ComponentResult
+
+
+@pytest.fixture
+def pipeline():
+    p = Pipeline("test-pipeline")
+    return p
+
+
+class TestPipelineComponent:
+    @pytest.mark.asyncio
+    async def test_run_success(self):
+        async def handler(text):
+            return {"result": text.upper()}
+        
+        component = PipelineComponent(
+            component_id="test",
+            name="Test",
+            handler=handler,
+        )
+        
+        result = await component.run(text="hello")
+        assert result.status == ComponentStatus.COMPLETED
+        assert result.output["result"] == "HELLO"
+    
+    @pytest.mark.asyncio
+    async def test_run_failure(self):
+        async def handler():
+            raise ValueError("Test error")
+        
+        component = PipelineComponent(
+            component_id="test",
+            name="Test",
+            handler=handler,
+        )
+        
+        result = await component.run()
+        assert result.status == ComponentStatus.FAILED
+        assert "Test error" in result.error
+
+
+class TestPipeline:
+    def test_add_component(self, pipeline):
+        component = PipelineComponent(
+            component_id="c1",
+            name="Component 1",
+        )
+        pipeline.add_component(component)
+        assert "c1" in pipeline._components
+    
+    def test_add_edge(self, pipeline):
+        pipeline.add_edge("c1", "c2")
+        assert ("c1", "c2") in pipeline._edges
+    
+    @pytest.mark.asyncio
+    async def test_run_single_component(self, pipeline):
+        async def handler(text):
+            return {"result": text.upper()}
+        
+        component = PipelineComponent(
+            component_id="c1",
+            name="Upper",
+            handler=handler,
+        )
+        pipeline.add_component(component)
+        
+        result = await pipeline.run({"text": "hello"})
+        assert result["success"] is True
+        assert result["output"]["result"] == "HELLO"
+    
+    @pytest.mark.asyncio
+    async def test_run_pipeline_failure(self, pipeline):
+        async def handler():
+            raise ValueError("Failed")
+        
+        component = PipelineComponent(
+            component_id="c1",
+            name="Fail",
+            handler=handler,
+        )
+        pipeline.add_component(component)
+        
+        result = await pipeline.run({})
+        assert result["success"] is False
+        assert "Failed" in result["error"]
+    
+    def test_to_dict(self, pipeline):
+        component = PipelineComponent(
+            component_id="c1",
+            name="Test",
+        )
+        pipeline.add_component(component)
+        pipeline.add_edge("c1", "c2")
+        
+        d = pipeline.to_dict()
+        assert d["name"] == "test-pipeline"
+        assert len(d["components"]) == 1
+        assert len(d["edges"]) == 1