diff --git a/cli/src/cargo.rs b/cli/src/cargo.rs
index 30f9355..c13d6b2 100644
--- a/cli/src/cargo.rs
+++ b/cli/src/cargo.rs
@@ -61,6 +61,7 @@ pub struct Cargo {
     runner: PathBuf,
     target: PathBuf,
     sdk: PathBuf,
+    sdk_files: Arc<std::collections::BTreeMap<PathBuf, Vec<u8>>>,
 }
 impl Cargo {
     /// Installs changed SDK files and selects the current sausage executable as runner.
@@ -126,25 +127,9 @@ impl Cargo {
         let cached = std::path::absolute(cache)?
             .join("sdk")
             .join(format!("{:x}", hash.finalize()));
-        if !cached.is_dir() {
-            let parent = cached.parent().unwrap();
-            std::fs::create_dir_all(parent)
-                .with_context(|| format!("create {}", parent.display()))?;
-            let staging = tempfile::Builder::new()
-                .prefix("install-")
-                .tempdir_in(parent)?;
-            for (path, bytes) in &files {
-                write_changed(&staging.path().join(path), bytes)?;
-            }
-            // Another builder can publish the same complete, content-addressed SDK first.
-            if let Err(error) = std::fs::rename(staging.path(), &cached)
-                && !cached.is_dir()
-            {
-                return Err(error).with_context(|| format!("install {}", cached.display()));
-            }
-        }
         Ok(Self {
             sdk: cached,
+            sdk_files: Arc::new(files),
             target: std::path::absolute(cache)?.join("cargo-target"),
             world,
             runner,
@@ -177,7 +162,27 @@ impl Cargo {
         let source = source.to_path_buf();
         let copy = work.clone();
         let sdk = self.sdk.clone();
+        let sdk_files = self.sdk_files.clone();
         let build_guard = tokio::task::spawn_blocking(move || -> Result<_> {
+            // Host startup installs only the readable world copy. Builds populate the cache.
+            if !sdk.is_dir() {
+                let parent = sdk.parent().unwrap();
+                std::fs::create_dir_all(parent)
+                    .with_context(|| format!("create {}", parent.display()))?;
+                let staging = tempfile::Builder::new()
+                    .prefix("install-")
+                    .tempdir_in(parent)
+                    .with_context(|| format!("stage SDK in {}", parent.display()))?;
+                for (path, bytes) in sdk_files.iter() {
+                    write_changed(&staging.path().join(path), bytes)?;
+                }
+                // Another builder can publish the same complete SDK first.
+                if let Err(error) = std::fs::rename(staging.path(), &sdk)
+                    && !sdk.is_dir()
+                {
+                    return Err(error).with_context(|| format!("install {}", sdk.display()));
+                }
+            }
             if cleanup.exists() {
                 std::fs::remove_dir_all(&cleanup)
                     .with_context(|| format!("remove {}", cleanup.display()))?;
diff --git a/cli/tests/cargo.rs b/cli/tests/cargo.rs
index 58f8dd3..6711b18 100644
--- a/cli/tests/cargo.rs
+++ b/cli/tests/cargo.rs
@@ -268,6 +268,42 @@ async fn native_discovery_and_error_paths() {
     );
     host.stop().await;
 }
+/// Rework 3: an unavailable cache prevents builds, not host startup or SDK installation.
+#[tokio::test(flavor = "multi_thread", worker_threads = 2)]
+async fn cache_failure_is_deferred_until_build() {
+    let world = TestWorld::new();
+    world.source("simple", &fixture("cargo-test-fail"));
+    // A file blocks directory creation even when the test runs as root.
+    let cache = world.0.join("blocked-cache");
+    std::fs::write(&cache, "not a directory").unwrap();
+    let host = Host::start_with_cache(&world.0, &cache).await.unwrap();
+    assert!(world.0.join("plugins/cargo/sdk/src/lib.rs").is_file());
+    let error = host
+        .call("cargo.build", json!({"plugin":"simple"}))
+        .await
+        .unwrap_err();
+    assert_eq!(error["code"], -32004);
+    let output = error["data"]["output"].as_str().unwrap();
+    assert!(output.contains(cache.to_str().unwrap()), "{output}");
+    assert!(output.contains("create"), "{output}");
+    host.stop().await;
+
+    let standalone = TestWorld::new();
+    standalone.source("simple", &fixture("cargo-test-fail"));
+    let builder = sausage::cargo::Cargo::with_runner(
+        World::open(&standalone.0).unwrap(),
+        PathBuf::from(env!("CARGO_BIN_EXE_sausage")),
+        &cache,
+    )
+    .unwrap();
+    assert!(standalone.0.join("plugins/cargo/sdk/src/lib.rs").is_file());
+    let error = builder
+        .build(&standalone.0.join("plugins/simple/source"))
+        .await
+        .unwrap_err();
+    assert!(error.output.contains(cache.to_str().unwrap()), "{error}");
+    assert!(cache.is_file());
+}
 /// T23: release-only failures use data.output and retain successful WASI totals.
 #[tokio::test(flavor = "multi_thread", worker_threads = 2)]
 async fn release_only_failure() {