diff --git a/docs/plans/2026-06-06-equipment-namespace-structure-milestone.md.tasks.json b/docs/plans/2026-06-06-equipment-namespace-structure-milestone.md.tasks.json
index 9bd094a1..17476ca4 100644
--- a/docs/plans/2026-06-06-equipment-namespace-structure-milestone.md.tasks.json
+++ b/docs/plans/2026-06-06-equipment-namespace-structure-milestone.md.tasks.json
@@ -5,7 +5,7 @@
   "tasks": [
     {"id": 0, "nativeTaskId": 86, "subject": "Task 0: Confirm signatures + record architecture decisions", "status": "completed", "blockedBy": []},
     {"id": 1, "nativeTaskId": 87, "subject": "Task 1: Carry equipment signals in the composition + artifact", "status": "completed", "blockedBy": [86]},
-    {"id": 2, "nativeTaskId": 88, "subject": "Task 2: Materialise equipment signals in the live rebuild", "status": "pending", "blockedBy": [87]},
+    {"id": 2, "nativeTaskId": 88, "subject": "Task 2: Materialise equipment signals in the live rebuild", "status": "completed", "blockedBy": [87]},
     {"id": 3, "nativeTaskId": 89, "subject": "Task 3: Friendly browse names for UNS folders", "status": "pending", "blockedBy": [87]},
     {"id": 4, "nativeTaskId": 90, "subject": "Task 4: Idempotency + restart-safety", "status": "pending", "blockedBy": [88]},
     {"id": 5, "nativeTaskId": 91, "subject": "Task 5: docker-dev integration verification + tool support", "status": "pending", "blockedBy": [88, 89]}
diff --git a/src/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer/Phase7Applier.cs b/src/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer/Phase7Applier.cs
index 58278d67..70ff35d4 100644
--- a/src/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer/Phase7Applier.cs
+++ b/src/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer/Phase7Applier.cs
@@ -172,6 +172,67 @@ public sealed class Phase7Applier
             composition.GalaxyTags.Count, foldersCreated.Count);
     }
 
+    /// <summary>
+    ///     Materialise Equipment-namespace tags from a composition snapshot — the equipment-signal
+    ///     analogue of <see cref="MaterialiseGalaxyTags"/>. For each <see cref="EquipmentTagPlan"/>,
+    ///     ensure its optional <c>FolderPath</c> sub-folder under the existing equipment folder, then
+    ///     ensure a Variable (NodeId = <c>FullName</c>, the driver-side ref) inside it. Variables
+    ///     start BadWaitingForInitialData; the driver fills live values in a later milestone.
+    ///     Idempotent.
+    ///     <para>
+    ///         <b>Task 0 architecture decisions (recorded per the equipment-namespace-structure
+    ///         plan).</b> Decision #1 = <b>A</b> — a sink-based pass, NOT a reuse of
+    ///         <c>EquipmentNodeWalker</c>: no sink-backed <c>IAddressSpaceBuilder</c> adapter exists
+    ///         (<c>GenericDriverNodeManager.CapturingBuilder</c> decorates another builder, not the
+    ///         sink), and the walker re-creates the whole Area/Line/Equipment tree with browse-path
+    ///         NodeIds — incompatible with this path's logical-Id NodeIds (decision #3) and the
+    ///         already-materialised equipment folders (decision #4). Decision #4 = this pass adds
+    ///         ONLY variables (and any per-tag sub-folder); <see cref="MaterialiseHierarchy"/> owns
+    ///         the equipment folders and this pass never re-creates them. The sink's
+    ///         <c>EnsureVariable</c> takes a plain <c>string dataType</c> (not a DriverAttributeInfo).
+    ///     </para>
+    /// </summary>
+    /// <param name="composition">The composition result containing the equipment tags to materialise.</param>
+    public void MaterialiseEquipmentTags(Phase7CompositionResult composition)
+    {
+        ArgumentNullException.ThrowIfNull(composition);
+        if (composition.EquipmentTags.Count == 0) return;
+
+        // Sub-folders first — a tag's FolderPath becomes one folder UNDER its equipment folder
+        // (deduped per distinct equipment+path). Tags with no FolderPath hang directly under the
+        // equipment folder, which MaterialiseHierarchy already created (decision #4: never re-create
+        // the equipment folder here).
+        var foldersCreated = new HashSet<string>(StringComparer.Ordinal);
+        foreach (var tag in composition.EquipmentTags)
+        {
+            if (string.IsNullOrWhiteSpace(tag.FolderPath)) continue;
+            var folderNodeId = EquipmentSubFolderNodeId(tag.EquipmentId, tag.FolderPath);
+            if (!foldersCreated.Add(folderNodeId)) continue;
+            SafeEnsureFolder(folderNodeId, parentNodeId: tag.EquipmentId, displayName: tag.FolderPath);
+        }
+
+        // Variables: NodeId = FullName (the driver-side reference → read/write routing key). Parent
+        // is the FolderPath sub-folder when set, else the equipment folder directly. Like the Galaxy
+        // pass, per-variable idempotency relies on the sink's own EnsureVariable idempotency.
+        foreach (var tag in composition.EquipmentTags)
+        {
+            var parent = string.IsNullOrWhiteSpace(tag.FolderPath)
+                ? tag.EquipmentId
+                : EquipmentSubFolderNodeId(tag.EquipmentId, tag.FolderPath);
+            SafeEnsureVariable(tag.FullName, parent, tag.Name, tag.DataType);
+        }
+
+        _logger.LogInformation(
+            "Phase7Applier: equipment tags materialised (tags={Tags}, equipment={Equipment})",
+            composition.EquipmentTags.Count,
+            composition.EquipmentTags.Select(t => t.EquipmentId).Distinct(StringComparer.Ordinal).Count());
+    }
+
+    /// <summary>Deterministic NodeId for a tag's FolderPath sub-folder, scoped under its equipment
+    /// folder so two equipments' identically-named sub-folders never collide.</summary>
+    private static string EquipmentSubFolderNodeId(string equipmentId, string folderPath) =>
+        $"{equipmentId}/{folderPath}";
+
     private void SafeEnsureFolder(string nodeId, string? parentNodeId, string displayName)
     {
         try { _sink.EnsureFolder(nodeId, parentNodeId, displayName); }
diff --git a/src/Server/ZB.MOM.WW.OtOpcUa.Runtime/OpcUa/OpcUaPublishActor.cs b/src/Server/ZB.MOM.WW.OtOpcUa.Runtime/OpcUa/OpcUaPublishActor.cs
index ff8e5ecc..9f005cc1 100644
--- a/src/Server/ZB.MOM.WW.OtOpcUa.Runtime/OpcUa/OpcUaPublishActor.cs
+++ b/src/Server/ZB.MOM.WW.OtOpcUa.Runtime/OpcUa/OpcUaPublishActor.cs
@@ -230,6 +230,11 @@ public sealed class OpcUaPublishActor : ReceiveActor
             // + Variable node exist so clients can browse them. The Galaxy driver fills values
             // on a future SubscribeBulk pass; until then variables show BadWaitingForInitialData.
             _applier.MaterialiseGalaxyTags(composition);
+            // Equipment-namespace tags get their own pass: ensures each signal's Variable (and any
+            // FolderPath sub-folder) exists under its already-materialised equipment folder so
+            // clients can browse them. Live values arrive in a later milestone; until then the
+            // variables show BadWaitingForInitialData.
+            _applier.MaterialiseEquipmentTags(composition);
 
             OtOpcUaTelemetry.OpcUaSinkWrite.Add(1, new KeyValuePair<string, object?>("kind", "rebuild"));
             _log.Info("OpcUaPublish: applied rebuild (correlation={Correlation}, added={Added}, removed={Removed}, changed={Changed}, rebuild={Rebuild})",
diff --git a/tests/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer.Tests/Phase7ApplierTests.cs b/tests/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer.Tests/Phase7ApplierTests.cs
index 7cbae453..c9dabda1 100644
--- a/tests/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer.Tests/Phase7ApplierTests.cs
+++ b/tests/Server/ZB.MOM.WW.OtOpcUa.OpcUaServer.Tests/Phase7ApplierTests.cs
@@ -177,6 +177,58 @@ public sealed class Phase7ApplierTests
         sink.VariableCalls.ShouldContain(("line.cell.Torque", "line.cell", "Torque", "Float"));
     }
 
+    /// <summary>Verifies MaterialiseEquipmentTags creates one Variable per equipment tag directly
+    /// under its existing equipment folder (NodeId == FullName, parent == EquipmentId,
+    /// displayName == Name) and does NOT re-create the equipment folder (decision #4).</summary>
+    [Fact]
+    public void MaterialiseEquipmentTags_creates_variable_under_equipment_folder()
+    {
+        var sink = new RecordingSink();
+        var applier = new Phase7Applier(sink, NullLogger<Phase7Applier>.Instance);
+
+        var composition = new Phase7CompositionResult(
+            UnsAreas: Array.Empty<UnsAreaProjection>(),
+            UnsLines: Array.Empty<UnsLineProjection>(),
+            EquipmentNodes: Array.Empty<EquipmentNode>(),
+            DriverInstancePlans: Array.Empty<DriverInstancePlan>(),
+            ScriptedAlarmPlans: Array.Empty<ScriptedAlarmPlan>(),
+            GalaxyTags: Array.Empty<GalaxyTagPlan>())
+        {
+            EquipmentTags = new[]
+            {
+                new EquipmentTagPlan("eq-1", "drv", FolderPath: "", Name: "Speed", DataType: "Float", FullName: "40001"),
+            },
+        };
+
+        applier.MaterialiseEquipmentTags(composition);
+
+        sink.FolderCalls.ShouldBeEmpty(); // equipment folder already exists; no sub-folder needed
+        sink.VariableCalls.ShouldHaveSingleItem().ShouldBe(("40001", "eq-1", "Speed", "Float"));
+    }
+
+    /// <summary>Verifies a FolderPath on an equipment tag becomes a sub-folder UNDER the equipment
+    /// folder (not the namespace root), with the variable parented to that sub-folder.</summary>
+    [Fact]
+    public void MaterialiseEquipmentTags_nests_FolderPath_subfolder_under_equipment()
+    {
+        var sink = new RecordingSink();
+        var applier = new Phase7Applier(sink, NullLogger<Phase7Applier>.Instance);
+
+        var composition = new Phase7CompositionResult(
+            Array.Empty<EquipmentNode>(), Array.Empty<DriverInstancePlan>(), Array.Empty<ScriptedAlarmPlan>())
+        {
+            EquipmentTags = new[]
+            {
+                new EquipmentTagPlan("eq-1", "drv", FolderPath: "Diagnostics", Name: "Temp", DataType: "Float", FullName: "40002"),
+            },
+        };
+
+        applier.MaterialiseEquipmentTags(composition);
+
+        sink.FolderCalls.ShouldHaveSingleItem().ShouldBe(("eq-1/Diagnostics", "eq-1", "Diagnostics"));
+        sink.VariableCalls.ShouldHaveSingleItem().ShouldBe(("40002", "eq-1/Diagnostics", "Temp", "Float"));
+    }
+
     /// <summary>Verifies that added Galaxy tags in an otherwise-empty plan trigger an address-space rebuild.</summary>
     [Fact]
     public void Added_galaxy_tags_trigger_rebuild()