diff --git a/app/device_manager.py b/app/device_manager.py
new file mode 100644
index 0000000..8a632f3
--- /dev/null
+++ b/app/device_manager.py
@@ -0,0 +1,148 @@
+"""
+DeviceManager — manages MeshCore device connection for mc-webui v2.
+
+Runs the meshcore async event loop in a dedicated background thread.
+Flask routes call execute() to bridge sync→async.
+"""
+
+import asyncio
+import logging
+import threading
+from typing import Optional, Any
+
+logger = logging.getLogger(__name__)
+
+
+class DeviceManager:
+    """
+    Manages MeshCore device connection.
+
+    Usage:
+        dm = DeviceManager(config, db, socketio)
+        dm.start()  # spawns background thread, connects to device
+        ...
+        dm.stop()   # disconnect and stop background thread
+    """
+
+    def __init__(self, config, db, socketio=None):
+        self.config = config
+        self.db = db
+        self.socketio = socketio
+        self.mc = None              # meshcore.MeshCore instance
+        self._loop = None           # asyncio event loop (in background thread)
+        self._thread = None         # background thread
+        self._connected = False
+        self._device_name = None
+        self._self_info = None
+
+    @property
+    def is_connected(self) -> bool:
+        return self._connected and self.mc is not None
+
+    @property
+    def device_name(self) -> str:
+        return self._device_name or self.config.MC_DEVICE_NAME
+
+    @property
+    def self_info(self) -> Optional[dict]:
+        return self._self_info
+
+    def start(self):
+        """Start the device manager background thread and connect."""
+        if self._thread and self._thread.is_alive():
+            logger.warning("DeviceManager already running")
+            return
+
+        self._loop = asyncio.new_event_loop()
+        self._thread = threading.Thread(
+            target=self._run_loop, daemon=True, name="device-manager"
+        )
+        self._thread.start()
+        logger.info("DeviceManager background thread started")
+
+    def _run_loop(self):
+        """Run the async event loop in the background thread."""
+        asyncio.set_event_loop(self._loop)
+        self._loop.run_until_complete(self._connect())
+        self._loop.run_forever()
+
+    async def _connect(self):
+        """Connect to device via serial or TCP."""
+        from meshcore import MeshCore
+
+        try:
+            if self.config.use_tcp:
+                logger.info(f"Connecting via TCP: {self.config.MC_TCP_HOST}:{self.config.MC_TCP_PORT}")
+                self.mc = await MeshCore.create_tcp(
+                    host=self.config.MC_TCP_HOST,
+                    port=self.config.MC_TCP_PORT,
+                    auto_reconnect=self.config.MC_AUTO_RECONNECT,
+                )
+            else:
+                logger.info(f"Connecting via serial: {self.config.MC_SERIAL_PORT}")
+                self.mc = await MeshCore.create_serial(
+                    port=self.config.MC_SERIAL_PORT,
+                    auto_reconnect=self.config.MC_AUTO_RECONNECT,
+                )
+
+            # Read device info
+            self._self_info = self.mc.self_info
+            self._device_name = self._self_info.get('name', self.config.MC_DEVICE_NAME)
+            self._connected = True
+
+            # Store device info in database
+            self.db.set_device_info(
+                public_key=self._self_info.get('public_key', ''),
+                name=self._device_name,
+                self_info=str(self._self_info)
+            )
+
+            logger.info(f"Connected to device: {self._device_name} "
+                        f"(key: {self._self_info.get('public_key', '?')[:8]}...)")
+
+            # TODO Phase 1: subscribe to events here
+            # self.mc.subscribe(EventType.CHANNEL_MSG_RECV, self._on_channel_message)
+            # self.mc.subscribe(EventType.CONTACT_MSG_RECV, self._on_dm_received)
+            # self.mc.subscribe(EventType.ADVERTISEMENT, self._on_advertisement)
+            # etc.
+
+        except Exception as e:
+            logger.error(f"Device connection failed: {e}")
+            self._connected = False
+            # TODO: implement reconnect with backoff
+
+    def execute(self, coro) -> Any:
+        """
+        Execute an async coroutine from sync Flask context.
+        Blocks until the coroutine completes and returns the result.
+
+        Usage from Flask route:
+            contacts = device_manager.execute(device_manager.mc.ensure_contacts())
+        """
+        if not self._loop or not self._loop.is_running():
+            raise RuntimeError("DeviceManager event loop not running")
+        future = asyncio.run_coroutine_threadsafe(coro, self._loop)
+        return future.result(timeout=30)
+
+    def stop(self):
+        """Disconnect from device and stop the background thread."""
+        logger.info("Stopping DeviceManager...")
+
+        if self.mc and self._loop and self._loop.is_running():
+            try:
+                future = asyncio.run_coroutine_threadsafe(
+                    self.mc.disconnect(), self._loop
+                )
+                future.result(timeout=5)
+            except Exception as e:
+                logger.warning(f"Error during disconnect: {e}")
+
+        if self._loop and self._loop.is_running():
+            self._loop.call_soon_threadsafe(self._loop.stop)
+
+        if self._thread:
+            self._thread.join(timeout=5)
+
+        self._connected = False
+        self.mc = None
+        logger.info("DeviceManager stopped")