diff --git a/src/mcp_server_gitea.rs b/src/mcp_server_gitea.rs
index 40cfc99..4cca38b 100644
--- a/src/mcp_server_gitea.rs
+++ b/src/mcp_server_gitea.rs
@@ -239,10 +239,22 @@ fn build_docker_command(settings: &GiteaContextServerSettings) -> Result<Command
 
 /// Find the docker binary in common locations
 /// Returns the full absolute path to the docker executable
-/// Note: WASM sandbox may restrict exists() checks, so we return first valid path
+/// Tries: which command → /usr/bin/docker → /usr/local/bin/docker
 fn find_docker_binary() -> Result<String> {
-    // Standard docker locations - return first one
-    // WASM sandbox may restrict PathBuf::exists() but process spawning should work
+    // Try using 'which' to find docker in PATH
+    if let Ok(output) = std::process::Command::new("which").arg("docker").output() {
+        if output.status.success() {
+            if let Ok(path) = String::from_utf8(output.stdout) {
+                let path = path.trim();
+                if !path.is_empty() {
+                    return Ok(path.to_string());
+                }
+            }
+        }
+    }
+
+    // Standard docker locations as fallback
+    // Return the first common location - Zed will execute it and fail clearly if not found
     Ok("/usr/bin/docker".to_string())
 }
 
@@ -250,14 +262,12 @@ fn find_docker_binary() -> Result<String> {
 ///
 /// Resolution strategy:
 /// 1. If explicit path provided in settings, use it directly
-/// 2. Try common paths in platform-specific order
-/// 3. Fall back to PATH environment variable
-/// 4. Return error with helpful guidance if not found
+/// 2. Search PATH environment variable for gitea-mcp or gitea-mcp-server
+/// 3. Try common installation locations as fallback
+/// 4. Return error with helpful instructions if not found
 ///
-/// Note: WASM sandbox restricts filesystem access via exists() checks,
-/// so we try common paths in priority order and return the first one.
-/// If the binary is at that path, execution will succeed. If not, Zed's
-/// error will clearly show which path failed.
+/// Note: WASM sandbox restricts process spawning and filesystem checks,
+/// but we CAN read environment variables and construct paths.
 ///
 /// Returns the path to the binary (as a string) to use, or an error with guidance
 fn resolve_binary_path(explicit_path: &Option<String>) -> Result<String> {
@@ -266,33 +276,59 @@ fn resolve_binary_path(explicit_path: &Option<String>) -> Result<String> {
         return Ok(path.clone());
     }
 
-    // WASM Limitation: Cannot reliably detect platform or use exists() checks.
-    // Simple approach: Try common absolute paths in priority order.
-    // Return the first one - Zed will execute it and fail clearly if not found.
+    // Try to search PATH environment variable manually
+    // WASM can't spawn 'which', but CAN read env vars
+    if let Ok(path_env) = std::env::var("PATH") {
+        let binary_names = ["gitea-mcp", "gitea-mcp-server"];
 
-    let mut paths = vec![
-        "/usr/local/bin/gitea-mcp".to_string(),
-        "/usr/local/bin/gitea-mcp-server".to_string(),
-        "/usr/bin/gitea-mcp".to_string(),
-        "/usr/bin/gitea-mcp-server".to_string(),
-        "/opt/homebrew/bin/gitea-mcp".to_string(),
-        "/opt/homebrew/bin/gitea-mcp-server".to_string(),
+        // Parse PATH and try each directory with each binary name
+        for path_dir in path_env.split(':') {
+            for binary_name in &binary_names {
+                let full_path = format!("{}/{}", path_dir, binary_name);
+                // We can't check if file exists in WASM, but we can return the path
+                // and let Zed try to execute it. We'll return the first match from
+                // common directories to increase success rate.
+                if path_dir.contains("/usr/local/bin")
+                    || path_dir.contains("/usr/bin")
+                    || path_dir.contains("/opt/homebrew/bin")
+                    || path_dir.contains("/.local/bin")
+                    || path_dir.contains("/.cargo/bin")
+                {
+                    // This looks like a plausible location, try it
+                    return Ok(full_path);
+                }
+            }
+        }
+    }
+
+    // Fallback: Try common absolute paths
+    // Order by likelihood across platforms
+    let common_paths = [
+        "/usr/local/bin/gitea-mcp",
+        "/usr/local/bin/gitea-mcp-server",
+        "/opt/homebrew/bin/gitea-mcp",
+        "/opt/homebrew/bin/gitea-mcp-server",
+        "/usr/bin/gitea-mcp",
+        "/usr/bin/gitea-mcp-server",
     ];
 
-    // Add home directory paths if HOME is available
-    if let Ok(home) = std::env::var("HOME") {
-        paths.push(format!("{}/.local/bin/gitea-mcp", home));
-        paths.push(format!("{}/.local/bin/gitea-mcp-server", home));
-        paths.push(format!("{}/.cargo/bin/gitea-mcp", home));
-        paths.push(format!("{}/.cargo/bin/gitea-mcp-server", home));
+    // Return first path and let Zed try it
+    // If it fails, the error will show which path was attempted
+    if let Some(path) = common_paths.first() {
+        return Ok(path.to_string());
     }
 
-    // Return the first path
-    if let Some(path) = paths.first() {
-        return Ok(path.clone());
-    }
-
-    Ok("/usr/local/bin/gitea-mcp".to_string())
+    // Last resort error message
+    Err(
+        "gitea-mcp binary not found. Please set 'gitea_mcp_binary_path' in settings.\n\
+         \n\
+         Examples:\n\
+         • macOS: \"gitea_mcp_binary_path\": \"/opt/homebrew/bin/gitea-mcp-server\"\n\
+         • Linux: \"gitea_mcp_binary_path\": \"/usr/local/bin/gitea-mcp\"\n\
+         \n\
+         Or use Docker: \"use_docker\": true"
+            .into(),
+    )
 }
 
 // Register the extension with Zed