diff --git a/packages/envd/main.go b/packages/envd/main.go
index 0dd08d211c..1777b082c8 100644
--- a/packages/envd/main.go
+++ b/packages/envd/main.go
@@ -6,6 +6,7 @@ import (
 	"fmt"
 	"io"
 	"log"
+	"net"
 	"net/http"
 	"os"
 	"path/filepath"
@@ -179,6 +180,20 @@ func run() error {
 	ctx, cancel := context.WithCancel(context.Background())
 	defer cancel()
 
+	// Bind the listener before any blocking initializer so the TCP port is
+	// reachable from process start. Incoming connections are queued in the
+	// kernel's accept backlog; nothing is dispatched until s.Serve(ln) below.
+	// Without this, a slow or hanging initializer (e.g. writeCgroupProp under
+	// memory pressure) produces a window where the process is alive but the port
+	// returns ECONNREFUSED — indistinguishable from a crashed envd to any
+	// TCP-based health check or orchestrator readiness probe.
+	ln, err := net.Listen("tcp", fmt.Sprintf("0.0.0.0:%d", port))
+	if err != nil {
+		return fmt.Errorf("bind envd listener: %w", err)
+	}
+	defer ln.Close()
+	fmt.Fprintf(os.Stderr, "envd: HTTP listener bound on :%d\n", port)
+
 	if err := os.MkdirAll(host.E2BRunDir, 0o755); err != nil {
 		fmt.Fprintf(os.Stderr, "error creating E2B run directory: %v\n", err)
 	}
@@ -207,7 +222,9 @@ func run() error {
 	fsLogger := l.With().Str("logger", "filesystem").Logger()
 	filesystemService := filesystemRpc.Handle(m, &fsLogger, defaults)
 
+	fmt.Fprintf(os.Stderr, "envd startup: creating cgroup manager\n")
 	cgroupManager := createCgroupManager()
+	fmt.Fprintf(os.Stderr, "envd startup: cgroup manager ready\n")
 	defer func() {
 		err := cgroupManager.Close()
 		if err != nil {
@@ -445,7 +462,7 @@ func run() error {
 		}
 	})
 
-	err := s.ListenAndServe()
+	err = s.Serve(ln)
 	// Signal goroutines to stop before deferred cleanup closes their resources.
 	// TODO: shutdown synchronization needs to be revisited.
 	cancel()
diff --git a/packages/envd/pkg/version.go b/packages/envd/pkg/version.go
index cc6c4dea69..e4b403a71c 100644
--- a/packages/envd/pkg/version.go
+++ b/packages/envd/pkg/version.go
@@ -1,3 +1,3 @@
 package pkg
 
-const Version = "0.7.0" // x-release-please-version
+const Version = "0.7.1" // x-release-please-version