diff --git a/src/TeamsISO.Engine/Pipeline/IsoPipeline.cs b/src/TeamsISO.Engine/Pipeline/IsoPipeline.cs
new file mode 100644
index 0000000..511fb21
--- /dev/null
+++ b/src/TeamsISO.Engine/Pipeline/IsoPipeline.cs
@@ -0,0 +1,198 @@
+using System.Threading.Channels;
+using Microsoft.Extensions.Logging;
+using TeamsISO.Engine.Domain;
+using TeamsISO.Engine.Interop;
+
+namespace TeamsISO.Engine.Pipeline;
+
+/// <summary>
+/// Per-ISO unit. Owns one capture loop, one frame processor, one send loop, and the
+/// supervisor that restarts the inner pipeline with exponential backoff on failure.
+/// </summary>
+public sealed class IsoPipeline : IAsyncDisposable
+{
+    private readonly Func<CancellationToken, Task> _runInner;
+    private readonly ExponentialBackoff _backoff;
+    private readonly Func<TimeSpan, CancellationToken, Task> _delay;
+    private readonly ILogger<IsoPipeline> _logger;
+
+    private CancellationTokenSource? _cts;
+    private Task? _supervisorTask;
+    private int _consecutiveFailures;
+
+    public Guid ParticipantId { get; }
+    public IsoState State { get; private set; } = IsoState.Idle;
+    public int ConsecutiveFailures => _consecutiveFailures;
+
+    /// <summary>
+    /// Test ctor. The caller supplies the inner runner directly so failures and lifetimes
+    /// can be controlled from a unit test.
+    /// </summary>
+    internal IsoPipeline(
+        Guid participantId,
+        Func<CancellationToken, Task> runInner,
+        ExponentialBackoff backoff,
+        Func<TimeSpan, CancellationToken, Task> delay,
+        ILoggerFactory loggerFactory)
+    {
+        ParticipantId = participantId;
+        _runInner = runInner;
+        _backoff = backoff;
+        _delay = delay;
+        _logger = loggerFactory.CreateLogger<IsoPipeline>();
+    }
+
+    /// <summary>
+    /// Production ctor. Builds the inner runner from the engine dependencies.
+    /// </summary>
+    public IsoPipeline(
+        IsoPipelineConfig config,
+        INdiInterop interop,
+        IFrameScaler scaler,
+        IFrameClock frameClock,
+        ExponentialBackoff backoff,
+        Func<TimeSpan, CancellationToken, Task> delay,
+        ILoggerFactory loggerFactory)
+        : this(config.ParticipantId,
+               ct => RunInnerPipelineAsync(config, interop, scaler, frameClock, loggerFactory, ct),
+               backoff,
+               delay,
+               loggerFactory) { }
+
+    /// <summary>Starts the supervisor. Returns immediately; pipeline runs in the background.</summary>
+    public Task StartAsync()
+    {
+        if (_supervisorTask is not null)
+            throw new InvalidOperationException("Pipeline already started.");
+        _cts = new CancellationTokenSource();
+        State = IsoState.Receiving;
+        _supervisorTask = SupervisorLoopAsync(_cts.Token);
+        return Task.CompletedTask;
+    }
+
+    /// <summary>Stops the pipeline and awaits supervisor completion.</summary>
+    public async Task StopAsync()
+    {
+        if (_cts is null) return;
+        _cts.Cancel();
+        if (_supervisorTask is not null)
+        {
+            try { await _supervisorTask; }
+            catch (OperationCanceledException) { /* expected */ }
+        }
+        State = IsoState.Idle;
+        _cts.Dispose();
+        _cts = null;
+        _supervisorTask = null;
+    }
+
+    public async ValueTask DisposeAsync()
+    {
+        await StopAsync();
+    }
+
+    private async Task SupervisorLoopAsync(CancellationToken ct)
+    {
+        _consecutiveFailures = 0;
+        while (!ct.IsCancellationRequested)
+        {
+            try
+            {
+                await _runInner(ct);
+                // Inner exited normally (typically only on cancellation) — leave the loop.
+                break;
+            }
+            catch (OperationCanceledException)
+            {
+                break;
+            }
+            catch (Exception ex)
+            {
+                _consecutiveFailures++;
+                _logger.LogWarning(ex,
+                    "Pipeline {ParticipantId} failed (consecutive failure #{N}).",
+                    ParticipantId, _consecutiveFailures);
+
+                if (_backoff.ShouldGiveUp(_consecutiveFailures))
+                {
+                    State = IsoState.Error;
+                    _logger.LogError("Pipeline {ParticipantId} giving up after {N} consecutive failures.",
+                        ParticipantId, _consecutiveFailures);
+                    return;
+                }
+
+                var wait = _backoff.NextDelay(_consecutiveFailures);
+                _logger.LogInformation("Pipeline {ParticipantId} retrying in {Delay}.", ParticipantId, wait);
+                try
+                {
+                    await _delay(wait, ct);
+                }
+                catch (OperationCanceledException)
+                {
+                    break;
+                }
+                State = IsoState.Receiving;
+            }
+        }
+    }
+
+    /// <summary>
+    /// Default inner pipeline: spins up receiver → processor → sender on bounded channels
+    /// and awaits all three. Throws if any of them throws.
+    /// </summary>
+    private static async Task RunInnerPipelineAsync(
+        IsoPipelineConfig config,
+        INdiInterop interop,
+        IFrameScaler scaler,
+        IFrameClock frameClock,
+        ILoggerFactory loggerFactory,
+        CancellationToken ct)
+    {
+        var rawChannel = Channel.CreateBounded<RawFrame>(new BoundedChannelOptions(config.RawChannelCapacity)
+        {
+            FullMode = BoundedChannelFullMode.DropOldest,
+            SingleReader = true,
+            SingleWriter = true,
+        });
+        var processedChannel = Channel.CreateBounded<ProcessedFrame>(new BoundedChannelOptions(config.ProcessedChannelCapacity)
+        {
+            FullMode = BoundedChannelFullMode.DropOldest,
+            SingleReader = true,
+            SingleWriter = true,
+        });
+
+        using var receiver = new NdiReceiver(
+            interop, config.SourceName, rawChannel.Writer, loggerFactory.CreateLogger<NdiReceiver>());
+        using var sender = new NdiSender(
+            interop, config.OutputName, processedChannel.Reader, loggerFactory.CreateLogger<NdiSender>());
+
+        var processor = new FrameProcessor(
+            config.Settings, scaler, new SolidFrameRenderer(),
+            frameClock, rawChannel.Reader, processedChannel.Writer,
+            config.SlateThreshold, loggerFactory.CreateLogger<FrameProcessor>());
+
+        var receiverTask = receiver.RunAsync(ct);
+        var senderTask = sender.RunAsync(ct);
+        var processorTask = ProcessorLoopAsync(processor, frameClock, ct);
+
+        try
+        {
+            await Task.WhenAll(receiverTask, senderTask, processorTask);
+        }
+        finally
+        {
+            rawChannel.Writer.TryComplete();
+            processedChannel.Writer.TryComplete();
+        }
+    }
+
+    private static async Task ProcessorLoopAsync(FrameProcessor processor, IFrameClock clock, CancellationToken ct)
+    {
+        while (!ct.IsCancellationRequested)
+        {
+            var advanced = await clock.WaitForNextTickAsync(ct);
+            if (!advanced) break;
+            await processor.ProcessOnceAsync(ct);
+        }
+    }
+}
diff --git a/src/TeamsISO.Engine/Pipeline/IsoPipelineConfig.cs b/src/TeamsISO.Engine/Pipeline/IsoPipelineConfig.cs
new file mode 100644
index 0000000..272e57c
--- /dev/null
+++ b/src/TeamsISO.Engine/Pipeline/IsoPipelineConfig.cs
@@ -0,0 +1,23 @@
+using TeamsISO.Engine.Domain;
+
+namespace TeamsISO.Engine.Pipeline;
+
+/// <summary>
+/// Per-pipeline configuration — identifies the participant, the source it captures,
+/// the output it emits, and the global processing settings to apply.
+/// </summary>
+public sealed record IsoPipelineConfig(
+    Guid ParticipantId,
+    string SourceName,
+    string OutputName,
+    FrameProcessingSettings Settings)
+{
+    /// <summary>Default no-signal threshold per spec §4.</summary>
+    public TimeSpan SlateThreshold { get; init; } = TimeSpan.FromSeconds(2.5);
+
+    /// <summary>Bounded raw-frame channel capacity (drop-oldest backpressure).</summary>
+    public int RawChannelCapacity { get; init; } = 4;
+
+    /// <summary>Bounded processed-frame channel capacity.</summary>
+    public int ProcessedChannelCapacity { get; init; } = 2;
+}
diff --git a/src/TeamsISO.Engine/TeamsISO.Engine.csproj b/src/TeamsISO.Engine/TeamsISO.Engine.csproj
index d6fa014..310a2dd 100644
--- a/src/TeamsISO.Engine/TeamsISO.Engine.csproj
+++ b/src/TeamsISO.Engine/TeamsISO.Engine.csproj
@@ -1,17 +1,19 @@
-<Project Sdk="Microsoft.NET.Sdk">
-
-  <PropertyGroup>
-    <TargetFramework>net8.0</TargetFramework>
-    <ImplicitUsings>enable</ImplicitUsings>
-    <Nullable>enable</Nullable>
-  </PropertyGroup>
-
+<Project Sdk="Microsoft.NET.Sdk">
+
+  <PropertyGroup>
+    <TargetFramework>net8.0</TargetFramework>
+  </PropertyGroup>
+
   <ItemGroup>
     <PackageReference Include="Microsoft.Extensions.Logging.Abstractions" Version="8.0.0" />
     <PackageReference Include="Serilog" Version="4.0.0" />
     <PackageReference Include="Serilog.Extensions.Logging" Version="8.0.0" />
     <PackageReference Include="Serilog.Sinks.Console" Version="6.0.0" />
     <PackageReference Include="System.Reactive" Version="6.0.0" />
-  </ItemGroup>
-
-</Project>
+  </ItemGroup>
+
+  <ItemGroup>
+    <InternalsVisibleTo Include="TeamsISO.Engine.Tests" />
+  </ItemGroup>
+
+</Project>
diff --git a/src/tests/TeamsISO.Engine.Tests/Pipeline/IsoPipelineTests.cs b/src/tests/TeamsISO.Engine.Tests/Pipeline/IsoPipelineTests.cs
new file mode 100644
index 0000000..765d844
--- /dev/null
+++ b/src/tests/TeamsISO.Engine.Tests/Pipeline/IsoPipelineTests.cs
@@ -0,0 +1,99 @@
+using Microsoft.Extensions.Logging.Abstractions;
+using TeamsISO.Engine.Domain;
+using TeamsISO.Engine.Pipeline;
+
+namespace TeamsISO.Engine.Tests.Pipeline;
+
+public class IsoPipelineTests
+{
+    private static ExponentialBackoff FastBackoff() =>
+        new(maxAttempts: 5, initial: TimeSpan.FromMilliseconds(1), cap: TimeSpan.FromMilliseconds(10));
+
+    private static Func<TimeSpan, CancellationToken, Task> NoDelay() =>
+        (_, _) => Task.CompletedTask;
+
+    [Fact]
+    public async Task StartAsync_TransitionsIdleToReceiving()
+    {
+        var participant = Guid.NewGuid();
+        var blocker = new TaskCompletionSource();
+        var pipeline = new IsoPipeline(
+            participant,
+            ct => blocker.Task.WaitAsync(ct),
+            FastBackoff(),
+            NoDelay(),
+            NullLoggerFactory.Instance);
+
+        await pipeline.StartAsync();
+
+        pipeline.State.Should().Be(IsoState.Receiving);
+
+        blocker.SetResult();
+        await pipeline.StopAsync();
+    }
+
+    [Fact]
+    public async Task StopAsync_TransitionsBackToIdle()
+    {
+        var blocker = new TaskCompletionSource();
+        var pipeline = new IsoPipeline(
+            Guid.NewGuid(),
+            ct => blocker.Task.WaitAsync(ct),
+            FastBackoff(),
+            NoDelay(),
+            NullLoggerFactory.Instance);
+
+        await pipeline.StartAsync();
+        await pipeline.StopAsync();
+
+        pipeline.State.Should().Be(IsoState.Idle);
+    }
+
+    [Fact]
+    public async Task Supervisor_FailsOnce_ThenRecovers_RemainsReceiving()
+    {
+        int callCount = 0;
+        var done = new TaskCompletionSource();
+        var pipeline = new IsoPipeline(
+            Guid.NewGuid(),
+            ct =>
+            {
+                callCount++;
+                if (callCount == 1) throw new InvalidOperationException("boom");
+                return done.Task.WaitAsync(ct);
+            },
+            FastBackoff(),
+            NoDelay(),
+            NullLoggerFactory.Instance);
+
+        await pipeline.StartAsync();
+        await Task.Delay(50);          // let the supervisor cycle through the failure
+        callCount.Should().BeGreaterOrEqualTo(2);
+        pipeline.ConsecutiveFailures.Should().Be(1);
+        pipeline.State.Should().Be(IsoState.Receiving);
+
+        done.SetResult();
+        await pipeline.StopAsync();
+    }
+
+    [Fact]
+    public async Task Supervisor_FailsRepeatedly_TransitionsToError()
+    {
+        var pipeline = new IsoPipeline(
+            Guid.NewGuid(),
+            _ => throw new InvalidOperationException("permanent"),
+            FastBackoff(),
+            NoDelay(),
+            NullLoggerFactory.Instance);
+
+        await pipeline.StartAsync();
+
+        // Wait for supervisor to give up (max 5 attempts × ~1ms delay)
+        var deadline = DateTime.UtcNow.AddSeconds(2);
+        while (pipeline.State != IsoState.Error && DateTime.UtcNow < deadline)
+            await Task.Delay(20);
+
+        pipeline.State.Should().Be(IsoState.Error);
+        pipeline.ConsecutiveFailures.Should().Be(6); // 5 retries allowed, give up on 6th
+    }
+}