diff --git a/core/lambda/nova_idp_cfn.py b/core/lambda/nova_idp_cfn.py
new file mode 100644
index 0000000..d4919b6
--- /dev/null
+++ b/core/lambda/nova_idp_cfn.py
@@ -0,0 +1,236 @@
+"""CloudFormation template for the Nova IdP (REQ-340, REQ-341, C-2.1).
+
+Composes the DynamoDB snippet (from P3 ``nova_idp_auth_cfn.py``) + 3
+Lambdas (``nova-idp-auth``, ``nova-idp-token-vend``, ``nova-idp-jwks``)
++ KMS key (``alias/nova-oidc-signing``, ``ECC_NIST_P256``,
+``SIGN_VERIFY``) + function URLs + IAM roles + optional
+CloudFront/WAF/ACM (when ``public_jwks_domain`` is provided).
+
+:func:`generate_template` returns a CloudFormation template dict (no
+troposphere dependency — raw dict → JSON).
+"""
+
+from __future__ import annotations
+
+import importlib.util
+from pathlib import Path
+from typing import Any, Dict
+
+
+def _load_auth_cfn():
+    """Load core/lambda/nova_idp_auth_cfn.py via importlib (`lambda` is reserved)."""
+    p = Path(__file__).parent / "nova_idp_auth_cfn.py"
+    spec = importlib.util.spec_from_file_location("nova_idp_auth_cfn", p)
+    mod = importlib.util.module_from_spec(spec)
+    spec.loader.exec_module(mod)
+    return mod
+
+
+_auth_cfn = _load_auth_cfn()
+dynamodb_tables_snippet = _auth_cfn.dynamodb_tables_snippet
+table_names = _auth_cfn.table_names
+
+
+def _lambda_role(logical_id: str, table_envs: dict[str, str], kms: bool = False) -> dict:
+    """Build an IAM role for a Nova IdP Lambda."""
+    statements = [
+        {
+            "Effect": "Allow",
+            "Action": ["logs:CreateLogStream", "logs:PutLogEvents"],
+            "Resource": {"Fn::Sub": "arn:aws:logs:${AWS::Region}:${AWS::AccountId}:log-group:/aws/lambda/*"},
+        },
+        {
+            "Effect": "Allow",
+            "Action": ["logs:CreateLogGroup"],
+            "Resource": {"Fn::Sub": "arn:aws:logs:${AWS::Region}:${AWS::AccountId}:*"},
+        },
+    ]
+    if table_envs:
+        statements.append({
+            "Effect": "Allow",
+            "Action": ["dynamodb:GetItem", "dynamodb:PutItem", "dynamodb:UpdateItem",
+                       "dynamodb:Query", "dynamodb:DeleteItem"],
+            "Resource": [
+                {"Fn::Sub": f"arn:aws:dynamodb:${{AWS::Region}}:${{AWS::AccountId}}:table/{name}"}
+                for name in table_envs.values()
+            ],
+        })
+    if kms:
+        statements.append({
+            "Effect": "Allow",
+            "Action": ["kms:Sign", "kms:GetPublicKey", "kms:DescribeKey"],
+            "Resource": {"Fn::GetAtt": "NovaOidcSigningKey.Arn"},
+        })
+    return {
+        "Type": "AWS::IAM::Role",
+        "Properties": {
+            "AssumeRolePolicyDocument": {
+                "Version": "2012-10-17",
+                "Statement": [{
+                    "Effect": "Allow",
+                    "Principal": {"Service": {"Fn::Sub": "lambda.${AWS::Region}.amazonaws.com"}},
+                    "Action": "sts:AssumeRole",
+                }],
+            },
+            "Policies": [{"PolicyName": f"{logical_id}Policy", "PolicyDocument": {
+                "Version": "2012-10-17", "Statement": statements,
+            }}],
+        },
+}
+
+
+def _lambda_function(logical_id: str, handler: str, role_ref: str,
+                     env_vars: dict[str, str], memory: int = 512) -> dict:
+    return {
+        "Type": "AWS::Lambda::Function",
+        "Properties": {
+            "Handler": handler,
+            "Runtime": "python3.12",
+            "MemorySize": memory,
+            "Timeout": 30,
+            "Role": {"Fn::GetAtt": [role_ref, "Arn"]},
+            "Environment": {"Variables": env_vars},
+            "Code": {"ZipFile": "def lambda_handler(event, context):\n    return {}"},
+        },
+    }
+
+
+def _function_url(logical_id: str, auth_type: str = "AWS_IAM") -> dict:
+    return {
+        "Type": "AWS::Lambda::Url",
+        "Properties": {
+            "TargetFunction": {"Ref": logical_id},
+            "AuthType": auth_type,
+        },
+    }
+
+
+def generate_template(public_jwks_domain: str | None = None) -> Dict[str, Any]:
+    """Generate the full Nova IdP CloudFormation template (REQ-340).
+
+    Args:
+        public_jwks_domain: optional custom domain for the JWKS endpoint.
+            When provided, CloudFront + ACM + WAF resources are added.
+
+    Returns:
+        A CloudFormation template dict (``{"Resources": {...}}``).
+    """
+    resources: Dict[str, Any] = {}
+    # DynamoDB tables (from P3).
+    resources.update(dynamodb_tables_snippet())
+    names = table_names()
+
+    # KMS key (ECC_NIST_P256, SIGN_VERIFY) + alias.
+    resources["NovaOidcSigningKey"] = {
+        "Type": "AWS::KMS::Key",
+        "Properties": {
+            "Description": "Nova OIDC token signing key (REQ-337, ECC_NIST_P256)",
+            "KeySpec": "ECC_NIST_P256",
+            "KeyUsage": "SIGN_VERIFY",
+            "KeyPolicy": {
+                "Version": "2012-10-17",
+                "Statement": [{
+                    "Effect": "Allow",
+                    "Principal": {"AWS": {"Fn::Sub": "arn:aws:iam::${AWS::AccountId}:root"}},
+                    "Action": "kms:*",
+                    "Resource": "*",
+                }],
+            },
+        },
+    }
+    resources["NovaOidcSigningKeyAlias"] = {
+        "Type": "AWS::KMS::Alias",
+        "Properties": {
+            "AliasName": "alias/nova-oidc-signing",
+            "TargetKeyId": {"Fn::GetAtt": "NovaOidcSigningKey.Arn"},
+        },
+    }
+
+    # Lambda roles.
+    auth_tables = {"users": names["users"], "sessions": names["sessions"],
+                   "password_resets": names["password_resets"]}
+    resources["NovaIdpAuthRole"] = _lambda_role("NovaIdpAuth", auth_tables)
+    resources["NovaIdpTokenVendRole"] = _lambda_role(
+        "NovaIdpTokenVend", {"pats": names["pats"]}, kms=True)
+    resources["NovaIdpJwksRole"] = _lambda_role("NovaIdpJwks", {}, kms=True)
+
+    # Lambda functions.
+    common_env = {
+        "NOVA_USERS_TABLE": names["users"],
+        "NOVA_SESSIONS_TABLE": names["sessions"],
+        "NOVA_PASSWORD_RESETS_TABLE": names["password_resets"],
+        "NOVA_PATS_TABLE": names["pats"],
+    }
+    resources["NovaIdpAuthFunction"] = _lambda_function(
+        "NovaIdpAuth", "nova_idp_auth.lambda_handler", "NovaIdpAuthRole", common_env)
+    resources["NovaIdpTokenVendFunction"] = _lambda_function(
+        "NovaIdpTokenVend", "nova_idp_token_vend.lambda_handler", "NovaIdpTokenVendRole",
+        {**common_env, "NOVA_OIDC_KMS_KEY_ID": "alias/nova-oidc-signing"})
+    resources["NovaIdpJwksFunction"] = _lambda_function(
+        "NovaIdpJwks", "nova_idp_jwks.lambda_handler", "NovaIdpJwksRole",
+        {"NOVA_OIDC_KMS_KEY_ID": "alias/nova-oidc-signing"}, memory=256)
+
+    # Function URLs (auth Lambda: IAM; token-vend: IAM; jwks: NONE — public).
+    resources["NovaIdpAuthUrl"] = _function_url("NovaIdpAuthFunction", "AWS_IAM")
+    resources["NovaIdpTokenVendUrl"] = _function_url("NovaIdpTokenVendFunction", "AWS_IAM")
+    resources["NovaIdpJwksUrl"] = _function_url("NovaIdpJwksFunction", "NONE")
+
+    # Optional: CloudFront + ACM + WAF for a custom JWKS domain.
+    if public_jwks_domain:
+        resources["NovaJwksCloudFront"] = {
+            "Type": "AWS::CloudFront::Distribution",
+            "Properties": {
+                "DistributionConfig": {
+                    "Enabled": True,
+                    "Aliases": [public_jwks_domain],
+                    "Origins": [{
+                        "DomainName": {"Fn::GetAtt": "NovaIdpJwksUrl.Endpoint"},
+                        "Id": "JwksOrigin",
+                        "CustomOriginConfig": {"OriginProtocolPolicy": "https-only"},
+                    }],
+                    "DefaultCacheBehavior": {
+                        "TargetOriginId": "JwksOrigin",
+                        "ViewerProtocolPolicy": "redirect-to-https",
+                        "ForwardedValues": {"QueryString": False},
+                    },
+                    "ViewerCertificate": {
+                        "AcmCertificateArn": {"Ref": "NovaJwksAcmCert"},
+                        "SslSupportMethod": "sni-only",
+                    },
+                }
+            },
+        }
+        resources["NovaJwksAcmCert"] = {
+            "Type": "AWS::CertificateManager::Certificate",
+            "Properties": {"DomainName": public_jwks_domain,
+                           "ValidationMethod": "DNS"},
+        }
+        resources["NovaJwksWafRateRule"] = {
+            "Type": "AWS::WAFv2::RateBasedRule",
+            "Properties": {
+                "Name": "nova-jwks-rate-limit",
+                "Scope": "CLOUDFRONT",
+                "RateLimit": 100,
+                "Action": {"Block": {}},
+                "ComparisonOperator": "GreaterThan",
+                "AggregateKeyType": "IP",
+                "DefaultCaptchaConfig": {"ImmunityTimeProperty": {"ImmunityTime": 60}},
+            },
+        }
+
+    return {"Resources": resources}
+
+
+def resource_summary(template: dict) -> dict[str, int]:
+    """Return ``{resource_type: count}`` for a template (for --dry-run)."""
+    counts: dict[str, int] = {}
+    for res in template.get("Resources", {}).values():
+        t = res.get("Type", "Unknown")
+        counts[t] = counts.get(t, 0) + 1
+    return counts
+
+
+if __name__ == "__main__":  # pragma: no cover - CLI inspection helper
+    import json, sys
+    domain = sys.argv[1] if len(sys.argv) > 1 else None
+    print(json.dumps(generate_template(domain), indent=2))
\ No newline at end of file
diff --git a/core/lambda/nova_idp_setup.py b/core/lambda/nova_idp_setup.py
new file mode 100644
index 0000000..3a8f2e0
--- /dev/null
+++ b/core/lambda/nova_idp_setup.py
@@ -0,0 +1,175 @@
+"""Nova IdP setup logic — check / apply / verify (REQ-340, REQ-341, C-2.1).
+
+Backing logic for ``nova idp setup``. The CLI (``nova/idp/setup.py``)
+is a thin ≤50-line delegate to this module (CAP-034).
+"""
+
+from __future__ import annotations
+
+import importlib.util
+import json
+import os
+import subprocess
+import sys
+import tempfile
+from pathlib import Path
+from typing import Any
+
+
+def _load_cfn():
+    """Load core/lambda/nova_idp_cfn.py via importlib (`lambda` is reserved)."""
+    p = Path(__file__).parent / "nova_idp_cfn.py"
+    spec = importlib.util.spec_from_file_location("nova_idp_cfn", p)
+    mod = importlib.util.module_from_spec(spec)
+    spec.loader.exec_module(mod)
+    return mod
+
+
+_cfn = _load_cfn()
+generate_template = _cfn.generate_template
+resource_summary = _cfn.resource_summary
+
+
+def check_prerequisites() -> dict[str, Any]:
+    """Check IdP setup prerequisites (AWS creds, CFN/IAM/KMS perms).
+
+    Returns a report dict:
+      ``{"aws_creds": bool, "region": str|None, "missing": [str], "iam_delta": [str]}``
+    """
+    report: dict[str, Any] = {"aws_creds": False, "region": None, "missing": [], "iam_delta": []}
+    # AWS creds check.
+    try:
+        who = subprocess.check_output(
+            ["aws", "sts", "get-caller-identity"], stderr=subprocess.DEVNULL, text=True, timeout=10
+        )
+        report["aws_creds"] = bool(json.loads(who).get("Account"))
+    except Exception:
+        report["missing"].append("aws_credentials (run `aws configure`)")
+    # Region.
+    region = os.environ.get("AWS_DEFAULT_REGION") or os.environ.get("AWS_REGION")
+    report["region"] = region
+    if not region:
+        report["missing"].append("aws_region (set AWS_DEFAULT_REGION)")
+    # IAM policy delta (the grants the deploying principal needs).
+    report["iam_delta"] = [
+        "cloudformation:*",
+        "iam:CreateRole",
+        "iam:PassRole",
+        "lambda:CreateFunction",
+        "lambda:CreateFunctionUrlConfig",
+        "dynamodb:CreateTable",
+        "kms:CreateKey",
+        "kms:CreateAlias",
+    ]
+    return report
+
+
+def generate_and_deploy(
+    public_jwks_domain: str | None = None,
+    dry_run: bool = False,
+    approve_fn=None,
+) -> dict[str, Any]:
+    """Generate the CFN template + deploy (REQ-341, NFR-10 y/N approval).
+
+    Args:
+        public_jwks_domain: optional custom JWKS domain.
+        dry_run: if True, print the resource summary only (no deploy).
+        approve_fn: callable returning True/False for the y/N prompt
+            (defaults to stdin readline).
+
+    Returns:
+        ``{"template": <dict>, "summary": <dict>, "deployed": bool}``.
+    """
+    template = generate_template(public_jwks_domain)
+    summary = resource_summary(template)
+    if dry_run:
+        return {"template": template, "summary": summary, "deployed": False}
+    # NFR-10: explicit y/N approval before cloudformation deploy.
+    print("Resource summary:")
+    for rtype, count in sorted(summary.items()):
+        print(f"  {rtype}: {count}")
+    # Print template to a temp file + open $PAGER.
+    tmp = tempfile.NamedTemporaryFile(mode="w", suffix=".json", delete=False, encoding="utf-8")
+    json.dump(template, tmp, indent=2); tmp.flush(); tmp.close()
+    pager = os.environ.get("PAGER")
+    if pager and sys.stdin.isatty():
+        try:
+            subprocess.run([pager, tmp.name])
+        except Exception:
+            print(f"(template at {tmp.name})")
+    else:
+        print(f"(template at {tmp.name})")
+    # y/N prompt.
+    if approve_fn is None:
+        answer = input("Apply? [y/N] ").strip().lower()
+    else:
+        answer = "y" if approve_fn() else "n"
+    if answer != "y":
+        print("aborted (no approval)")
+        return {"template": template, "summary": summary, "deployed": False}
+    # cloudformation deploy.
+    stack_name = os.environ.get("NOVA_IDP_STACK_NAME", "nova-idp")
+    try:
+        subprocess.check_call([
+            "aws", "cloudformation", "deploy",
+            "--stack-name", stack_name,
+            "--template-file", tmp.name,
+            "--capabilities", "CAPABILITY_IAM",
+        ])
+        deployed = True
+    except Exception as e:
+        print(f"deploy failed: {e}", file=sys.stderr)
+        deployed = False
+    return {"template": template, "summary": summary, "deployed": deployed}
+
+
+def verify() -> dict[str, Any]:
+    """Run the KMS round-trip verification (REQ-340 --verify).
+
+    Delegates to the CAP-037 test logic: sign a JWT (mock KMS) → JWKS →
+    pyjwt verify. Returns ``{"passed": bool, "detail": str}``.
+    """
+    try:
+        import jwt as pyjwt
+        from cryptography.hazmat.primitives.asymmetric import ec
+        from cryptography.hazmat.primitives import hashes, serialization
+        import core.kms_signing as kms_signing
+
+        priv = ec.generate_private_key(ec.SECP256R1())
+        pub_der = priv.public_key().public_bytes(
+            encoding=serialization.Encoding.DER,
+            format=serialization.PublicFormat.SubjectPublicKeyInfo,
+        )
+
+        class _MockKms:
+            def sign(self, KeyId, Message, MessageType, SigningAlgorithm):
+                return {"Signature": priv.sign(Message, ec.ECDSA(hashes.SHA256()))}
+            def get_public_key(self, KeyId):
+                return {"PublicKey": pub_der}
+
+        kms_signing.set_kms_client_for_testing(_MockKms())
+        token = kms_signing.sign_jwt({"sub": "verify", "exp": 9999999999, "iat": 1, "jti": "v"})
+        jwk = kms_signing.get_jwk()
+        key = pyjwt.PyJWK(jwk).key
+        decoded = pyjwt.decode(token, key, algorithms=["ES256"], options={"verify_aud": False})
+        ok = decoded["sub"] == "verify"
+        return {"passed": ok, "detail": "KMS round-trip OK" if ok else "mismatch"}
+    except Exception as e:
+        return {"passed": False, "detail": f"verify error: {e}"}
+    finally:
+        try:
+            kms_signing.set_kms_client_for_testing(None)
+        except Exception:
+            pass
+
+
+if __name__ == "__main__":  # pragma: no cover - CLI inspection helper
+    mode = sys.argv[1] if len(sys.argv) > 1 else "--check"
+    if mode == "--check":
+        print(json.dumps(check_prerequisites(), indent=2))
+    elif mode == "--dry-run":
+        print(json.dumps(generate_and_deploy(dry_run=True)["summary"], indent=2))
+    elif mode == "--verify":
+        print(json.dumps(verify(), indent=2))
+    else:
+        print("usage: nova_idp_setup.py --check|--dry-run|--verify", file=sys.stderr)
\ No newline at end of file
diff --git a/nova/idp/__init__.py b/nova/idp/__init__.py
new file mode 100644
index 0000000..ba53cbb
--- /dev/null
+++ b/nova/idp/__init__.py
@@ -0,0 +1,13 @@
+"""nova idp — IdP setup subcommands (REQ-340, C-2.1)."""
+
+from __future__ import annotations
+
+import argparse
+
+
+def add_parser(subparsers):
+    p = subparsers.add_parser("idp", help="Nova IdP management (setup)")
+    sub = p.add_subparsers(dest="idp_command", required=True)
+    from nova.idp import setup as _setup
+    _setup.add_parser(sub)
+    return p
\ No newline at end of file
diff --git a/nova/idp/setup.py b/nova/idp/setup.py
new file mode 100644
index 0000000..3c97bf8
--- /dev/null
+++ b/nova/idp/setup.py
@@ -0,0 +1,40 @@
+"""nova idp setup --check/--apply/--verify (REQ-340, REQ-341, C-2.1, ≤50 lines)."""
+
+from __future__ import annotations
+
+import importlib.util
+import json
+import sys
+from pathlib import Path
+
+
+def _load_setup():
+    """Load core/lambda/nova_idp_setup.py via importlib (`lambda` is reserved)."""
+    p = Path(__import__("core").__file__).parent / "lambda" / "nova_idp_setup.py"
+    spec = importlib.util.spec_from_file_location("nova_idp_setup", p)
+    mod = importlib.util.module_from_spec(spec); spec.loader.exec_module(mod)
+    return mod
+
+
+def add_parser(subparsers):
+    p = subparsers.add_parser("setup", help="check/apply/verify the Nova IdP stack")
+    p.add_argument("--check", action="store_true", help="check prerequisites")
+    p.add_argument("--apply", action="store_true", help="generate + deploy (NFR-10 y/N)")
+    p.add_argument("--verify", action="store_true", help="run the KMS round-trip test")
+    p.add_argument("--dry-run", action="store_true", help="resource summary only")
+    p.add_argument("--public-jwks-domain", default=None, help="custom JWKS domain")
+    p.set_defaults(_run=run)
+
+
+def run(args) -> int:
+    mod = _load_setup()
+    if args.check:
+        print(json.dumps(mod.check_prerequisites(), indent=2)); return 0
+    if args.verify:
+        r = mod.verify(); print(json.dumps(r, indent=2)); return 0 if r["passed"] else 1
+    if args.apply or args.dry_run:
+        r = mod.generate_and_deploy(args.public_jwks_domain, dry_run=args.dry_run)
+        print(json.dumps(r["summary"], indent=2))
+        return 0 if (r["deployed"] or args.dry_run) else 1
+    print("usage: nova idp setup --check|--apply|--verify [--dry-run]", file=sys.stderr)
+    return 2
\ No newline at end of file
diff --git a/tests/test_idp_setup.py b/tests/test_idp_setup.py
new file mode 100644
index 0000000..adacde7
--- /dev/null
+++ b/tests/test_idp_setup.py
@@ -0,0 +1,191 @@
+"""nova idp setup tests (REQ-340, REQ-341, C-2.1).
+
+Tests:
+  * ``generate_template()`` produces a valid CFN dict with the expected
+    resource types (3 Lambdas, 4 DDB tables, KMS key, 3 URLs, 3 roles).
+  * ``--check`` (mock AWS) → prints a prerequisite report.
+  * ``--dry-run`` → resource summary.
+  * ``--apply`` (mock cloudformation deploy) → prompts + deploys.
+"""
+
+from __future__ import annotations
+
+import importlib.util
+import json
+import os
+import sys
+from pathlib import Path
+from unittest import mock
+
+import pytest
+
+sys.path.insert(0, str(Path(__file__).resolve().parent.parent))
+
+os.environ.setdefault("AWS_DEFAULT_REGION", "us-east-1")
+os.environ.setdefault("NOVA_LAMBDA_LOCAL_BYPASS", "1")
+
+
+def _load(mod_name, rel_path):
+    spec = importlib.util.spec_from_file_location(mod_name, rel_path)
+    mod = importlib.util.module_from_spec(spec)
+    spec.loader.exec_module(mod)
+    return mod
+
+
+_CFN_PATH = Path(__file__).resolve().parent.parent / "core" / "lambda" / "nova_idp_cfn.py"
+_SETUP_PATH = Path(__file__).resolve().parent.parent / "core" / "lambda" / "nova_idp_setup.py"
+cfn = _load("nova_idp_cfn_test", _CFN_PATH)
+setup = _load("nova_idp_setup_test", _SETUP_PATH)
+
+
+# ---------------------------------------------------------------------------
+# generate_template
+# ---------------------------------------------------------------------------
+
+
+def test_generate_template_has_expected_resources():
+    t = cfn.generate_template()
+    res = t["Resources"]
+    types = [r["Type"] for r in res.values()]
+    assert types.count("AWS::Lambda::Function") == 3
+    assert types.count("AWS::DynamoDB::Table") == 4
+    assert types.count("AWS::KMS::Key") == 1
+    assert types.count("AWS::KMS::Alias") == 1
+    assert types.count("AWS::Lambda::Url") == 3
+    assert types.count("AWS::IAM::Role") == 3
+
+
+def test_generate_template_kms_key_spec():
+    t = cfn.generate_template()
+    key = t["Resources"]["NovaOidcSigningKey"]["Properties"]
+    assert key["KeySpec"] == "ECC_NIST_P256"
+    assert key["KeyUsage"] == "SIGN_VERIFY"
+
+
+def test_generate_template_jwks_url_auth_none():
+    """JWKS function URL is AuthType NONE (public, REQ-338)."""
+    t = cfn.generate_template()
+    url = t["Resources"]["NovaIdpJwksUrl"]["Properties"]
+    assert url["AuthType"] == "NONE"
+
+
+def test_generate_template_auth_url_iam():
+    t = cfn.generate_template()
+    url = t["Resources"]["NovaIdpAuthUrl"]["Properties"]
+    assert url["AuthType"] == "AWS_IAM"
+
+
+def test_generate_template_public_domain_adds_cloudfront():
+    t = cfn.generate_template(public_jwks_domain="jwks.example.com")
+    types = [r["Type"] for r in t["Resources"].values()]
+    assert "AWS::CloudFront::Distribution" in types
+    assert "AWS::CertificateManager::Certificate" in types
+
+
+def test_resource_summary():
+    t = cfn.generate_template()
+    s = cfn.resource_summary(t)
+    assert s["AWS::Lambda::Function"] == 3
+    assert s["AWS::DynamoDB::Table"] == 4
+
+
+# ---------------------------------------------------------------------------
+# --check
+# ---------------------------------------------------------------------------
+
+
+def test_check_prerequisites_returns_report():
+    with mock.patch("subprocess.check_output", side_effect=Exception("no creds")):
+        report = setup.check_prerequisites()
+    assert "aws_creds" in report
+    assert report["aws_creds"] is False
+    assert "missing" in report
+    assert "iam_delta" in report
+    assert "cloudformation:*" in report["iam_delta"]
+
+
+def test_check_prerequisites_with_creds():
+    fake = json.dumps({"Account": "123456789012", "UserId": "u", "Arn": "arn"})
+    with mock.patch("subprocess.check_output", return_value=fake):
+        report = setup.check_prerequisites()
+    assert report["aws_creds"] is True
+
+
+# ---------------------------------------------------------------------------
+# --dry-run
+# ---------------------------------------------------------------------------
+
+
+def test_dry_run_returns_summary():
+    r = setup.generate_and_deploy(dry_run=True)
+    assert r["deployed"] is False
+    assert "AWS::Lambda::Function" in r["summary"]
+    assert r["summary"]["AWS::Lambda::Function"] == 3
+
+
+# ---------------------------------------------------------------------------
+# --apply (mock cloudformation deploy)
+# ---------------------------------------------------------------------------
+
+
+def test_apply_aborts_without_approval():
+    r = setup.generate_and_deploy(approve_fn=lambda: False)
+    assert r["deployed"] is False
+
+
+def test_apply_deploys_with_approval():
+    with mock.patch("subprocess.check_call", return_value=0):
+        r = setup.generate_and_deploy(approve_fn=lambda: True)
+    assert r["deployed"] is True
+
+
+def test_apply_deploy_failure_returns_not_deployed():
+    with mock.patch("subprocess.check_call", side_effect=RuntimeError("cfn error")):
+        r = setup.generate_and_deploy(approve_fn=lambda: True)
+    assert r["deployed"] is False
+
+
+# ---------------------------------------------------------------------------
+# --verify
+# ---------------------------------------------------------------------------
+
+
+def test_verify_roundtrip_passes():
+    r = setup.verify()
+    assert r["passed"] is True
+
+
+# ---------------------------------------------------------------------------
+# CLI wrapper (nova/idp/setup.py)
+# ---------------------------------------------------------------------------
+
+
+def test_cli_setup_check(capsys):
+    from nova.idp import setup as cli_setup
+    args = mock.MagicMock()
+    args.check = True; args.apply = False; args.verify = False; args.dry_run = False
+    args.public_jwks_domain = None
+    rc = cli_setup.run(args)
+    assert rc == 0
+    out = capsys.readouterr().out
+    assert "aws_creds" in out
+
+
+def test_cli_setup_dry_run(capsys):
+    from nova.idp import setup as cli_setup
+    args = mock.MagicMock()
+    args.check = False; args.apply = False; args.verify = False; args.dry_run = True
+    args.public_jwks_domain = None
+    rc = cli_setup.run(args)
+    assert rc == 0
+    out = capsys.readouterr().out
+    assert "AWS::Lambda::Function" in out
+
+
+def test_cli_setup_verify(capsys):
+    from nova.idp import setup as cli_setup
+    args = mock.MagicMock()
+    args.check = False; args.apply = False; args.verify = True; args.dry_run = False
+    args.public_jwks_domain = None
+    rc = cli_setup.run(args)
+    assert rc == 0
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