diff --git a/src/lab_harness/literature/paper_pilot_client.py b/src/lab_harness/literature/paper_pilot_client.py
index eb11069..fb7380b 100644
--- a/src/lab_harness/literature/paper_pilot_client.py
+++ b/src/lab_harness/literature/paper_pilot_client.py
@@ -252,9 +252,9 @@ def _parse_llm_response(
         # Strip markdown fences if the LLM included them despite instructions
         text = content.strip()
         if text.startswith("```"):
-            # Remove opening fence (```json or ```)
-            first_newline = text.index("\n")
-            text = text[first_newline + 1 :]
+            # Drop the opening fence line; a single-line reply has no newline to split on.
+            newline = text.find("\n")
+            text = text[newline + 1 :] if newline != -1 else text[3:]
         if text.endswith("```"):
             text = text[: -len("```")]
         text = text.strip()
diff --git a/tests/test_paper_pilot_client.py b/tests/test_paper_pilot_client.py
new file mode 100644
index 0000000..b4cc3d1
--- /dev/null
+++ b/tests/test_paper_pilot_client.py
@@ -0,0 +1,142 @@
+"""Tests for the paper-pilot literature client: response parsing, LLM fallback and dispatch."""
+
+from __future__ import annotations
+
+import json
+import sys
+from unittest.mock import AsyncMock, MagicMock, call, patch
+
+import pytest
+
+from lab_harness.literature.paper_pilot_client import LiteratureContext, PaperPilotClient
+
+PAYLOAD = {
+    "suggested_parameters": {"current_a": "1 mA"},
+    "evidence_chunks": ["Typical AHE studies bias the Hall bar at 1 mA."],
+    "instruments": ["sourcemeter: Keithley 2400"],
+}
+
+
+@pytest.mark.parametrize(
+    "template",
+    ["{}", "```json\n{}\n```", "```\n{}\n```", "```{}```"],
+    ids=["bare", "json-fence", "plain-fence", "single-line-fence"],
+)
+def test_parse_llm_response_accepts_fence_variants(template):
+    """A single-line fenced reply used to raise ValueError; every variant must parse."""
+    ctx = PaperPilotClient._parse_llm_response("AHE", template.format(json.dumps(PAYLOAD)))
+
+    assert ctx.suggested_parameters == PAYLOAD["suggested_parameters"]
+    assert ctx.evidence_chunks == PAYLOAD["evidence_chunks"]
+    assert ctx.source_papers == [{"source": "LLM knowledge", "instruments": PAYLOAD["instruments"]}]
+
+
+@pytest.mark.parametrize("content", ["Use a four-probe geometry.", "```"], ids=["prose", "bare-fence"])
+def test_parse_llm_response_non_json_keeps_raw_text_as_evidence(content):
+    ctx = PaperPilotClient._parse_llm_response("IV", content)
+
+    assert ctx.suggested_parameters == {}
+    assert ctx.source_papers == []
+    assert ctx.evidence_chunks == [content]
+
+
+def test_parse_llm_response_wraps_scalar_evidence_and_omits_empty_instruments():
+    ctx = PaperPilotClient._parse_llm_response("MR", json.dumps({"evidence_chunks": "one line"}))
+
+    assert ctx.evidence_chunks == ["one line"]
+    assert ctx.source_papers == []
+
+
+def test_parse_mcp_result_concatenates_text_blocks_and_truncates():
+    parse = PaperPilotClient._parse_mcp_result
+    blocks = [MagicMock(text="a" * 400), MagicMock(spec=[]), MagicMock(text="b" * 400)]
+
+    assert parse("RT", MagicMock(content=blocks)).evidence_chunks == ["a" * 400 + "b" * 100]
+    assert parse("RT", MagicMock(content=[])).evidence_chunks == []
+    assert parse("RT", 42).evidence_chunks == ["42"]
+
+
+@pytest.fixture
+def llm():
+    """Stub Settings/LLMRouter so _llm_fallback never touches the network."""
+    with patch("lab_harness.config.Settings.load"), patch("lab_harness.llm.router.LLMRouter") as cls:
+        router = cls.return_value
+        router.acomplete = AsyncMock()
+        yield router
+
+
+def _reply(router: MagicMock, content: str) -> None:
+    router.acomplete.return_value = {"choices": [{"message": {"content": content}}]}
+
+
+def _question(router: MagicMock) -> str:
+    return router.acomplete.call_args[0][0][1]["content"]
+
+
+async def test_llm_fallback_builds_question_and_emits_reference(llm):
+    _reply(llm, json.dumps(PAYLOAD))
+    emit = AsyncMock()
+
+    ctx = await PaperPilotClient()._llm_fallback("AHE", "100nm NiFe film", emit=emit)
+
+    assert ctx.suggested_parameters == PAYLOAD["suggested_parameters"]
+    assert "anomalous Hall effect" in _question(llm)
+    assert _question(llm).endswith("Specifically for sample: 100nm NiFe film.")
+    emit.assert_awaited_once_with("literature.paper_found", title="LLM knowledge")
+
+
+async def test_llm_fallback_unknown_type_uses_generic_question(llm):
+    _reply(llm, "{}")
+
+    ctx = await PaperPilotClient()._llm_fallback("XYZ", "")
+
+    assert _question(llm) == "What measurement protocol is used for XYZ?"
+    assert ctx == LiteratureContext(measurement_type="XYZ")
+
+
+async def test_llm_fallback_router_error_is_reported_as_evidence(llm):
+    llm.acomplete.side_effect = RuntimeError("no credentials")
+
+    ctx = await PaperPilotClient()._llm_fallback("IV", "")
+
+    assert ctx.evidence_chunks == ["LLM fallback error: no credentials"]
+    assert ctx.source_papers == []
+
+
+async def test_search_prefers_mcp_result_and_emits_lifecycle(monkeypatch):
+    client = PaperPilotClient()
+    found = LiteratureContext(measurement_type="AHE", source_papers=[{"title": "P1"}, {"title": "P2"}])
+    monkeypatch.setattr(client, "_try_paper_pilot", AsyncMock(return_value=found))
+    fallback = AsyncMock()
+    monkeypatch.setattr(client, "_llm_fallback", fallback)
+    emit = AsyncMock()
+
+    assert await client.search_for_protocol("ahe", "film", emit=emit) is found
+
+    fallback.assert_not_awaited()
+    assert emit.await_args_list == [
+        call("literature.start", measurement_type="AHE", sample="film"),
+        call("literature.complete", paper_count=2),
+    ]
+
+
+@pytest.mark.parametrize(
+    "mcp",
+    [AsyncMock(return_value=None), AsyncMock(side_effect=OSError("npx missing"))],
+    ids=["unreachable", "raises"],
+)
+async def test_search_falls_back_to_llm_when_mcp_unavailable(monkeypatch, mcp):
+    client = PaperPilotClient()
+    monkeypatch.setattr(client, "_try_paper_pilot", mcp)
+    fallback_ctx = LiteratureContext(measurement_type="IV")
+    monkeypatch.setattr(client, "_llm_fallback", AsyncMock(return_value=fallback_ctx))
+    emit = AsyncMock()
+
+    assert await client.search_for_protocol("IV", emit=emit) is fallback_ctx
+    emit.assert_awaited_with("literature.complete", paper_count=0)
+
+
+async def test_try_paper_pilot_returns_none_without_mcp_package(monkeypatch):
+    monkeypatch.setitem(sys.modules, "mcp", None)
+
+    assert await PaperPilotClient()._try_paper_pilot("IV", "") is None