diff --git a/.claude/workflows/cli-tools-usage.md b/.claude/workflows/cli-tools-usage.md
index 6113f635..8f2f7c0f 100644
--- a/.claude/workflows/cli-tools-usage.md
+++ b/.claude/workflows/cli-tools-usage.md
@@ -419,7 +419,7 @@ CCW automatically maps to tool-specific syntax:
 
 **Analysis Task** (Security Audit):
 ```bash
-timeout 600 ccw cli -p "
+ccw cli -p "
 PURPOSE: Identify OWASP Top 10 vulnerabilities in authentication module to pass security audit; success = all critical/high issues documented with remediation
 TASK: • Scan for injection flaws (SQL, command, LDAP) • Check authentication bypass vectors • Evaluate session management • Assess sensitive data exposure
 MODE: analysis
@@ -431,7 +431,7 @@ RULES: $(cat ~/.claude/workflows/cli-templates/protocols/analysis-protocol.md) $
 
 **Implementation Task** (New Feature):
 ```bash
-timeout 1800 ccw cli -p "
+ccw cli -p "
 PURPOSE: Implement rate limiting for API endpoints to prevent abuse; must be configurable per-endpoint; backward compatible with existing clients
 TASK: • Create rate limiter middleware with sliding window • Implement per-route configuration • Add Redis backend for distributed state • Include bypass for internal services
 MODE: write
@@ -443,7 +443,7 @@ RULES: $(cat ~/.claude/workflows/cli-templates/protocols/write-protocol.md) $(ca
 
 **Bug Fix Task**:
 ```bash
-timeout 900 ccw cli -p "
+ccw cli -p "
 PURPOSE: Fix memory leak in WebSocket connection handler causing server OOM after 24h; root cause must be identified before any fix
 TASK: • Trace connection lifecycle from open to close • Identify event listener accumulation • Check cleanup on disconnect • Verify garbage collection eligibility
 MODE: analysis
@@ -455,7 +455,7 @@ RULES: $(cat ~/.claude/workflows/cli-templates/protocols/analysis-protocol.md) $
 
 **Refactoring Task**:
 ```bash
-timeout 1200 ccw cli -p "
+ccw cli -p "
 PURPOSE: Refactor payment processing to use strategy pattern for multi-gateway support; no functional changes; all existing tests must pass
 TASK: • Extract gateway interface from current implementation • Create strategy classes for Stripe, PayPal • Implement factory for gateway selection • Migrate existing code to use strategies
 MODE: write
@@ -470,13 +470,7 @@ RULES: $(cat ~/.claude/workflows/cli-templates/protocols/write-protocol.md) $(ca
 
 ### Timeout Allocation (Bash)
 
-CLI internal timeout is disabled; controlled by external bash `timeout` command:
-
-```bash
-# Syntax: timeout <seconds> ccw cli ...
-timeout 600 ccw cli -p "..." --tool gemini --mode analysis   # 10 minutes
-timeout 1800 ccw cli -p "..." --tool codex --mode write      # 30 minutes
-```
+controlled by external bash `timeout` command:
 
 **Recommended Time Allocation**:
 
diff --git a/ccw/src/core/routes/codexlens-routes.ts b/ccw/src/core/routes/codexlens-routes.ts
index 3bac068e..1d49f27b 100644
--- a/ccw/src/core/routes/codexlens-routes.ts
+++ b/ccw/src/core/routes/codexlens-routes.ts
@@ -9,6 +9,7 @@ import {
   bootstrapVenv,
   executeCodexLens,
   checkSemanticStatus,
+  ensureLiteLLMEmbedderReady,
   installSemantic,
   detectGpuSupport,
   uninstallCodexLens,
@@ -405,9 +406,17 @@ export async function handleCodexLensRoutes(ctx: RouteContext): Promise<boolean>
   // API: CodexLens Init (Initialize workspace index)
   if (pathname === '/api/codexlens/init' && req.method === 'POST') {
     handlePostRequest(req, res, async (body) => {
-      const { path: projectPath, indexType = 'vector', embeddingModel = 'code', embeddingBackend = 'fastembed' } = body;
+      const { path: projectPath, indexType = 'vector', embeddingModel = 'code', embeddingBackend = 'fastembed', maxWorkers = 1 } = body;
       const targetPath = projectPath || initialPath;
 
+      // Ensure LiteLLM backend dependencies are installed before running the CLI
+      if (indexType !== 'normal' && embeddingBackend === 'litellm') {
+        const installResult = await ensureLiteLLMEmbedderReady();
+        if (!installResult.success) {
+          return { success: false, error: installResult.error || 'Failed to prepare LiteLLM embedder', status: 500 };
+        }
+      }
+
       // Build CLI arguments based on index type
       const args = ['init', targetPath, '--json'];
       if (indexType === 'normal') {
@@ -419,6 +428,10 @@ export async function handleCodexLensRoutes(ctx: RouteContext): Promise<boolean>
         if (embeddingBackend && embeddingBackend !== 'fastembed') {
           args.push('--embedding-backend', embeddingBackend);
         }
+        // Add max workers for concurrent API calls (useful for litellm backend)
+        if (maxWorkers && maxWorkers > 1) {
+          args.push('--max-workers', String(maxWorkers));
+        }
       }
 
       // Broadcast start event
diff --git a/ccw/src/templates/dashboard-js/views/codexlens-manager.js b/ccw/src/templates/dashboard-js/views/codexlens-manager.js
index ed1de360..53471bd4 100644
--- a/ccw/src/templates/dashboard-js/views/codexlens-manager.js
+++ b/ccw/src/templates/dashboard-js/views/codexlens-manager.js
@@ -1167,14 +1167,17 @@ async function deleteModel(profile) {
  * @param {string} indexType - 'vector' (with embeddings), 'normal' (FTS only), or 'full' (FTS + Vector)
  * @param {string} embeddingModel - Model profile: 'code', 'fast'
  * @param {string} embeddingBackend - Backend: 'fastembed' (local) or 'litellm' (API)
+ * @param {number} maxWorkers - Max concurrent API calls for embedding generation (default: 1)
  */
-async function initCodexLensIndex(indexType, embeddingModel, embeddingBackend) {
+async function initCodexLensIndex(indexType, embeddingModel, embeddingBackend, maxWorkers) {
   indexType = indexType || 'vector';
   embeddingModel = embeddingModel || 'code';
   embeddingBackend = embeddingBackend || 'fastembed';
+  maxWorkers = maxWorkers || 1;
 
-  // For vector or full index, check if semantic dependencies are available
-  if (indexType === 'vector' || indexType === 'full') {
+  // For vector/full index with local backend, check if semantic dependencies are available
+  // LiteLLM backend uses remote embeddings and does not require fastembed/ONNX deps.
+  if ((indexType === 'vector' || indexType === 'full') && embeddingBackend !== 'litellm') {
     try {
       var semanticResponse = await fetch('/api/codexlens/semantic/status');
       var semanticStatus = await semanticResponse.json();
@@ -1275,7 +1278,7 @@ async function initCodexLensIndex(indexType, embeddingModel, embeddingBackend) {
   var apiIndexType = (indexType === 'full') ? 'vector' : indexType;
 
   // Start indexing with specified type and model
-  startCodexLensIndexing(apiIndexType, embeddingModel, embeddingBackend);
+  startCodexLensIndexing(apiIndexType, embeddingModel, embeddingBackend, maxWorkers);
 }
 
 /**
@@ -1283,11 +1286,13 @@ async function initCodexLensIndex(indexType, embeddingModel, embeddingBackend) {
  * @param {string} indexType - 'vector' or 'normal'
  * @param {string} embeddingModel - Model profile: 'code', 'fast'
  * @param {string} embeddingBackend - Backend: 'fastembed' (local) or 'litellm' (API)
+ * @param {number} maxWorkers - Max concurrent API calls for embedding generation (default: 1)
  */
-async function startCodexLensIndexing(indexType, embeddingModel, embeddingBackend) {
+async function startCodexLensIndexing(indexType, embeddingModel, embeddingBackend, maxWorkers) {
   indexType = indexType || 'vector';
   embeddingModel = embeddingModel || 'code';
   embeddingBackend = embeddingBackend || 'fastembed';
+  maxWorkers = maxWorkers || 1;
   var statusText = document.getElementById('codexlensIndexStatus');
   var progressBar = document.getElementById('codexlensIndexProgressBar');
   var percentText = document.getElementById('codexlensIndexPercent');
@@ -1319,11 +1324,11 @@ async function startCodexLensIndexing(indexType, embeddingModel, embeddingBacken
   }
 
   try {
-    console.log('[CodexLens] Starting index for:', projectPath, 'type:', indexType, 'model:', embeddingModel, 'backend:', embeddingBackend);
+    console.log('[CodexLens] Starting index for:', projectPath, 'type:', indexType, 'model:', embeddingModel, 'backend:', embeddingBackend, 'maxWorkers:', maxWorkers);
     var response = await fetch('/api/codexlens/init', {
       method: 'POST',
       headers: { 'Content-Type': 'application/json' },
-      body: JSON.stringify({ path: projectPath, indexType: indexType, embeddingModel: embeddingModel, embeddingBackend: embeddingBackend })
+      body: JSON.stringify({ path: projectPath, indexType: indexType, embeddingModel: embeddingModel, embeddingBackend: embeddingBackend, maxWorkers: maxWorkers })
     });
 
     var result = await response.json();
@@ -1992,6 +1997,17 @@ function buildCodexLensManagerPage(config) {
                   '</select>' +
                   '<p class="text-xs text-muted-foreground mt-1">' + t('codexlens.modelHint') + '</p>' +
                 '</div>' +
+                // Concurrency selector (only for LiteLLM backend)
+                '<div id="concurrencySelector" class="hidden">' +
+                  '<label class="block text-sm font-medium mb-1.5">' + (t('codexlens.concurrency') || 'API Concurrency') + '</label>' +
+                  '<select id="pageConcurrencySelect" class="w-full px-3 py-2 border border-border rounded-lg bg-background text-sm">' +
+                    '<option value="1">1 (Sequential)</option>' +
+                    '<option value="2">2 workers</option>' +
+                    '<option value="4" selected>4 workers (Recommended)</option>' +
+                    '<option value="8">8 workers</option>' +
+                  '</select>' +
+                  '<p class="text-xs text-muted-foreground mt-1">' + (t('codexlens.concurrencyHint') || 'Number of parallel API calls for embedding generation') + '</p>' +
+                '</div>' +
                 // Index buttons - two modes: full (FTS + Vector) or FTS only
                 '<div class="grid grid-cols-2 gap-3">' +
                   '<button class="btn btn-primary flex items-center justify-center gap-2 py-3" onclick="initCodexLensIndexFromPage(\'full\')" title="' + t('codexlens.fullIndexDesc') + '">' +
@@ -2194,6 +2210,7 @@ function buildModelSelectOptionsForPage() {
 function onEmbeddingBackendChange() {
   var backendSelect = document.getElementById('pageBackendSelect');
   var modelSelect = document.getElementById('pageModelSelect');
+  var concurrencySelector = document.getElementById('concurrencySelector');
   if (!backendSelect || !modelSelect) {
     console.warn('[CodexLens] Backend or model select not found');
     return;
@@ -2209,9 +2226,17 @@ function onEmbeddingBackendChange() {
     var options = buildLiteLLMModelOptions();
     console.log('[CodexLens] Built options HTML:', options);
     modelSelect.innerHTML = options;
+    // Show concurrency selector for API backend
+    if (concurrencySelector) {
+      concurrencySelector.classList.remove('hidden');
+    }
   } else {
     // Load local fastembed models
     modelSelect.innerHTML = buildModelSelectOptionsForPage();
+    // Hide concurrency selector for local backend
+    if (concurrencySelector) {
+      concurrencySelector.classList.add('hidden');
+    }
   }
 }
 
@@ -2265,14 +2290,18 @@ window.onEmbeddingBackendChange = onEmbeddingBackendChange;
 function initCodexLensIndexFromPage(indexType) {
   var backendSelect = document.getElementById('pageBackendSelect');
   var modelSelect = document.getElementById('pageModelSelect');
+  var concurrencySelect = document.getElementById('pageConcurrencySelect');
   var selectedBackend = backendSelect ? backendSelect.value : 'fastembed';
   var selectedModel = modelSelect ? modelSelect.value : 'code';
+  var selectedConcurrency = concurrencySelect ? parseInt(concurrencySelect.value, 10) : 1;
 
   // For FTS-only index, model is not needed
   if (indexType === 'normal') {
     initCodexLensIndex(indexType);
   } else {
-    initCodexLensIndex(indexType, selectedModel, selectedBackend);
+    // Pass concurrency only for litellm backend
+    var maxWorkers = selectedBackend === 'litellm' ? selectedConcurrency : 1;
+    initCodexLensIndex(indexType, selectedModel, selectedBackend, maxWorkers);
   }
 }
 
diff --git a/ccw/src/tools/codex-lens.ts b/ccw/src/tools/codex-lens.ts
index 428261a2..b4c35fc7 100644
--- a/ccw/src/tools/codex-lens.ts
+++ b/ccw/src/tools/codex-lens.ts
@@ -77,6 +77,7 @@ interface SemanticStatus {
   backend?: string;
   accelerator?: string;
   providers?: string[];
+  litellmAvailable?: boolean;
   error?: string;
 }
 
@@ -195,11 +196,18 @@ async function checkSemanticStatus(): Promise<SemanticStatus> {
   // Check semantic module availability and accelerator info
   return new Promise((resolve) => {
     const checkCode = `
-import sys
-import json
-try:
-    from codexlens.semantic import SEMANTIC_AVAILABLE, SEMANTIC_BACKEND
-    result = {"available": SEMANTIC_AVAILABLE, "backend": SEMANTIC_BACKEND if SEMANTIC_AVAILABLE else None}
+ import sys
+ import json
+ try:
+    import codexlens.semantic as semantic
+    SEMANTIC_AVAILABLE = bool(getattr(semantic, "SEMANTIC_AVAILABLE", False))
+    SEMANTIC_BACKEND = getattr(semantic, "SEMANTIC_BACKEND", None)
+    LITELLM_AVAILABLE = bool(getattr(semantic, "LITELLM_AVAILABLE", False))
+    result = {
+        "available": SEMANTIC_AVAILABLE,
+        "backend": SEMANTIC_BACKEND if SEMANTIC_AVAILABLE else None,
+        "litellm_available": LITELLM_AVAILABLE,
+    }
 
     # Get ONNX providers for accelerator info
     try:
@@ -250,6 +258,7 @@ except Exception as e:
           backend: result.backend,
           accelerator: result.accelerator || 'CPU',
           providers: result.providers || [],
+          litellmAvailable: result.litellm_available || false,
           error: result.error
         });
       } catch {
@@ -263,6 +272,77 @@ except Exception as e:
   });
 }
 
+/**
+ * Ensure LiteLLM embedder dependencies are available in the CodexLens venv.
+ * Installs ccw-litellm into the venv if needed.
+ */
+async function ensureLiteLLMEmbedderReady(): Promise<BootstrapResult> {
+  // Ensure CodexLens venv exists and CodexLens is installed.
+  const readyStatus = await ensureReady();
+  if (!readyStatus.ready) {
+    return { success: false, error: readyStatus.error || 'CodexLens not ready' };
+  }
+
+  // Check if ccw_litellm can be imported
+  const importStatus = await new Promise<{ ok: boolean; error?: string }>((resolve) => {
+    const child = spawn(VENV_PYTHON, ['-c', 'import ccw_litellm; print("OK")'], {
+      stdio: ['ignore', 'pipe', 'pipe'],
+      timeout: 15000,
+    });
+
+    let stderr = '';
+    child.stderr.on('data', (data) => {
+      stderr += data.toString();
+    });
+
+    child.on('close', (code) => {
+      resolve({ ok: code === 0, error: stderr.trim() || undefined });
+    });
+
+    child.on('error', (err) => {
+      resolve({ ok: false, error: err.message });
+    });
+  });
+
+  if (importStatus.ok) {
+    return { success: true };
+  }
+
+  const pipPath =
+    process.platform === 'win32'
+      ? join(CODEXLENS_VENV, 'Scripts', 'pip.exe')
+      : join(CODEXLENS_VENV, 'bin', 'pip');
+
+  try {
+    console.log('[CodexLens] Installing ccw-litellm for LiteLLM embedding backend...');
+
+    const possiblePaths = [
+      join(process.cwd(), 'ccw-litellm'),
+      join(__dirname, '..', '..', '..', 'ccw-litellm'), // ccw/src/tools -> project root
+      join(homedir(), 'ccw-litellm'),
+    ];
+
+    let installed = false;
+    for (const localPath of possiblePaths) {
+      if (existsSync(join(localPath, 'pyproject.toml'))) {
+        console.log(`[CodexLens] Installing ccw-litellm from local path: ${localPath}`);
+        execSync(`"${pipPath}" install -e "${localPath}"`, { stdio: 'inherit' });
+        installed = true;
+        break;
+      }
+    }
+
+    if (!installed) {
+      console.log('[CodexLens] Installing ccw-litellm from PyPI...');
+      execSync(`"${pipPath}" install ccw-litellm`, { stdio: 'inherit' });
+    }
+
+    return { success: true };
+  } catch (err) {
+    return { success: false, error: `Failed to install ccw-litellm: ${(err as Error).message}` };
+  }
+}
+
 /**
  * GPU acceleration mode for semantic search
  */
@@ -1284,7 +1364,19 @@ function isIndexingInProgress(): boolean {
 export type { ProgressInfo, ExecuteOptions };
 
 // Export for direct usage
-export { ensureReady, executeCodexLens, checkVenvStatus, bootstrapVenv, checkSemanticStatus, installSemantic, detectGpuSupport, uninstallCodexLens, cancelIndexing, isIndexingInProgress };
+export {
+  ensureReady,
+  executeCodexLens,
+  checkVenvStatus,
+  bootstrapVenv,
+  checkSemanticStatus,
+  ensureLiteLLMEmbedderReady,
+  installSemantic,
+  detectGpuSupport,
+  uninstallCodexLens,
+  cancelIndexing,
+  isIndexingInProgress,
+};
 export type { GpuMode };
 
 // Backward-compatible export for tests
diff --git a/codex-lens/src/codexlens/cli/commands.py b/codex-lens/src/codexlens/cli/commands.py
index b7cc01fc..fec2e552 100644
--- a/codex-lens/src/codexlens/cli/commands.py
+++ b/codex-lens/src/codexlens/cli/commands.py
@@ -108,6 +108,7 @@ def init(
     no_embeddings: bool = typer.Option(False, "--no-embeddings", help="Skip automatic embedding generation (if semantic deps installed)."),
     embedding_backend: str = typer.Option("fastembed", "--embedding-backend", help="Embedding backend: fastembed (local) or litellm (remote API)."),
     embedding_model: str = typer.Option("code", "--embedding-model", help="Embedding model: profile name for fastembed (fast/code/multilingual/balanced) or model name for litellm (e.g. text-embedding-3-small)."),
+    max_workers: int = typer.Option(1, "--max-workers", min=1, max=16, help="Max concurrent API calls for embedding generation. Recommended: 4-8 for litellm backend."),
     json_mode: bool = typer.Option(False, "--json", help="Output JSON response."),
     verbose: bool = typer.Option(False, "--verbose", "-v", help="Enable debug logging."),
 ) -> None:
@@ -165,31 +166,31 @@ def init(
             "errors": len(build_result.errors),
         }
 
-        if json_mode:
-            print_json(success=True, result=result)
-        else:
+        if not json_mode:
             console.print(f"[green]OK[/green] Indexed [bold]{build_result.total_files}[/bold] files in [bold]{build_result.total_dirs}[/bold] directories")
             console.print(f"  Index root: {build_result.index_root}")
             if build_result.errors:
                 console.print(f"  [yellow]Warnings:[/yellow] {len(build_result.errors)} errors")
 
-        # Auto-generate embeddings if semantic search is available
+        # Auto-generate embeddings if the requested backend is available
         if not no_embeddings:
             try:
-                from codexlens.semantic import SEMANTIC_AVAILABLE
+                from codexlens.semantic import is_embedding_backend_available
                 from codexlens.cli.embedding_manager import generate_embeddings_recursive, get_embeddings_status
 
-                if SEMANTIC_AVAILABLE:
-                    # Validate embedding backend
-                    valid_backends = ["fastembed", "litellm"]
-                    if embedding_backend not in valid_backends:
-                        error_msg = f"Invalid embedding backend: {embedding_backend}. Must be one of: {', '.join(valid_backends)}"
-                        if json_mode:
-                            print_json(success=False, error=error_msg)
-                        else:
-                            console.print(f"[red]Error:[/red] {error_msg}")
-                        raise typer.Exit(code=1)
+                # Validate embedding backend
+                valid_backends = ["fastembed", "litellm"]
+                if embedding_backend not in valid_backends:
+                    error_msg = f"Invalid embedding backend: {embedding_backend}. Must be one of: {', '.join(valid_backends)}"
+                    if json_mode:
+                        print_json(success=False, error=error_msg)
+                    else:
+                        console.print(f"[red]Error:[/red] {error_msg}")
+                    raise typer.Exit(code=1)
 
+                backend_available, backend_error = is_embedding_backend_available(embedding_backend)
+
+                if backend_available:
                     # Use the index root directory (not the _index.db file)
                     index_root = Path(build_result.index_root)
 
@@ -221,6 +222,7 @@ def init(
                         force=False,  # Don't force regenerate during init
                         chunk_size=2000,
                         progress_callback=progress_update,  # Always use callback
+                        max_workers=max_workers,
                     )
 
                     if embed_result["success"]:
@@ -262,10 +264,10 @@ def init(
                         }
                 else:
                     if not json_mode and verbose:
-                        console.print("[dim]Semantic search not available. Skipping embeddings.[/dim]")
+                        console.print(f"[dim]Embedding backend '{embedding_backend}' not available. Skipping embeddings.[/dim]")
                     result["embeddings"] = {
                         "generated": False,
-                        "error": "Semantic dependencies not installed",
+                        "error": backend_error or "Embedding backend not available",
                     }
             except Exception as e:
                 if not json_mode and verbose:
@@ -280,6 +282,10 @@ def init(
                 "error": "Skipped (--no-embeddings)",
             }
 
+        # Output final JSON result with embeddings status
+        if json_mode:
+            print_json(success=True, result=result)
+
     except StorageError as exc:
         if json_mode:
             print_json(success=False, error=f"Storage error: {exc}")
@@ -1971,9 +1977,12 @@ def embeddings_generate(
             # Provide helpful hints
             if "already has" in error_msg:
                 console.print("\n[dim]Use --force to regenerate existing embeddings[/dim]")
-            elif "Semantic search not available" in error_msg:
+            elif "fastembed not available" in error_msg or "Semantic search not available" in error_msg:
                 console.print("\n[dim]Install semantic dependencies:[/dim]")
                 console.print("  [cyan]pip install codexlens[semantic][/cyan]")
+            elif "ccw-litellm not available" in error_msg:
+                console.print("\n[dim]Install LiteLLM backend dependencies:[/dim]")
+                console.print("  [cyan]pip install ccw-litellm[/cyan]")
 
             raise typer.Exit(code=1)
 
diff --git a/codex-lens/src/codexlens/cli/embedding_manager.py b/codex-lens/src/codexlens/cli/embedding_manager.py
index 0bb31507..85fc8dbb 100644
--- a/codex-lens/src/codexlens/cli/embedding_manager.py
+++ b/codex-lens/src/codexlens/cli/embedding_manager.py
@@ -10,13 +10,11 @@ from pathlib import Path
 from typing import Dict, Generator, List, Optional, Tuple
 
 try:
-    from codexlens.semantic import SEMANTIC_AVAILABLE
-    if SEMANTIC_AVAILABLE:
-        from codexlens.semantic.embedder import Embedder, get_embedder, clear_embedder_cache
-        from codexlens.semantic.vector_store import VectorStore
-        from codexlens.semantic.chunker import Chunker, ChunkConfig
+    from codexlens.semantic import SEMANTIC_AVAILABLE, is_embedding_backend_available
 except ImportError:
     SEMANTIC_AVAILABLE = False
+    def is_embedding_backend_available(_backend: str):  # type: ignore[no-redef]
+        return False, "codexlens.semantic not available"
 
 logger = logging.getLogger(__name__)
 
@@ -25,6 +23,15 @@ logger = logging.getLogger(__name__)
 EMBEDDING_BATCH_SIZE = 256
 
 
+def _cleanup_fastembed_resources() -> None:
+    """Best-effort cleanup for fastembed/ONNX resources (no-op for other backends)."""
+    try:
+        from codexlens.semantic.embedder import clear_embedder_cache
+        clear_embedder_cache()
+    except Exception:
+        pass
+
+
 def _generate_chunks_from_cursor(
     cursor,
     chunker,
@@ -252,7 +259,7 @@ def generate_embeddings(
     progress_callback: Optional[callable] = None,
     use_gpu: Optional[bool] = None,
     max_tokens_per_batch: Optional[int] = None,
-    max_workers: int = 1,
+    max_workers: Optional[int] = None,
 ) -> Dict[str, any]:
     """Generate embeddings for an index using memory-efficient batch processing.
 
@@ -276,8 +283,9 @@ def generate_embeddings(
         max_tokens_per_batch: Maximum tokens per batch for token-aware batching.
                              If None, attempts to get from embedder.max_tokens,
                              then falls back to 8000. If set, overrides automatic detection.
-        max_workers: Maximum number of concurrent API calls (default: 1 for sequential).
-                    Recommended: 2-4 for LiteLLM API backends.
+        max_workers: Maximum number of concurrent API calls.
+                    If None, uses dynamic defaults: 1 for fastembed (CPU bound),
+                    4 for litellm (network I/O bound).
 
     Returns:
         Result dictionary with generation statistics
@@ -291,11 +299,19 @@ def generate_embeddings(
         model_profile = default_model
     if use_gpu is None:
         use_gpu = default_gpu
-    if not SEMANTIC_AVAILABLE:
-        return {
-            "success": False,
-            "error": "Semantic search not available. Install with: pip install codexlens[semantic]",
-        }
+
+    # Set dynamic max_workers default based on backend type
+    # - FastEmbed: CPU-bound, sequential is optimal (1 worker)
+    # - LiteLLM: Network I/O bound, concurrent calls improve throughput (4 workers)
+    if max_workers is None:
+        if embedding_backend == "litellm":
+            max_workers = 4
+        else:
+            max_workers = 1
+
+    backend_available, backend_error = is_embedding_backend_available(embedding_backend)
+    if not backend_available:
+        return {"success": False, "error": backend_error or "Embedding backend not available"}
 
     if not index_path.exists():
         return {
@@ -335,6 +351,8 @@ def generate_embeddings(
     try:
         # Import factory function to support both backends
         from codexlens.semantic.factory import get_embedder as get_embedder_factory
+        from codexlens.semantic.vector_store import VectorStore
+        from codexlens.semantic.chunker import Chunker, ChunkConfig
 
         # Initialize embedder using factory (supports both fastembed and litellm)
         # For fastembed: model_profile is a profile name (fast/code/multilingual/balanced)
@@ -441,7 +459,7 @@ def generate_embeddings(
                     files_seen = set()
 
                     def compute_embeddings_only(batch_data: Tuple[int, List[Tuple]]):
-                        """Compute embeddings for a batch (no DB write).
+                        """Compute embeddings for a batch (no DB write) with retry logic.
 
                         Args:
                             batch_data: Tuple of (batch_number, chunk_batch)
@@ -449,22 +467,43 @@ def generate_embeddings(
                         Returns:
                             Tuple of (batch_num, chunk_batch, embeddings_numpy, batch_files, error)
                         """
+                        import random
+
                         batch_num, chunk_batch = batch_data
                         batch_files = set()
+                        for _, file_path in chunk_batch:
+                            batch_files.add(file_path)
 
-                        try:
-                            for _, file_path in chunk_batch:
-                                batch_files.add(file_path)
+                        max_retries = 3
+                        base_delay = 1.0
 
-                            batch_contents = [chunk.content for chunk, _ in chunk_batch]
-                            embeddings_numpy = embedder.embed_to_numpy(batch_contents, batch_size=EMBEDDING_BATCH_SIZE)
+                        for attempt in range(max_retries + 1):
+                            try:
+                                batch_contents = [chunk.content for chunk, _ in chunk_batch]
+                                embeddings_numpy = embedder.embed_to_numpy(batch_contents, batch_size=EMBEDDING_BATCH_SIZE)
+                                return batch_num, chunk_batch, embeddings_numpy, batch_files, None
 
-                            return batch_num, chunk_batch, embeddings_numpy, batch_files, None
+                            except Exception as e:
+                                error_str = str(e).lower()
+                                # Check for retryable errors (rate limit, connection issues)
+                                is_retryable = any(x in error_str for x in [
+                                    "429", "rate limit", "connection", "timeout",
+                                    "502", "503", "504", "service unavailable"
+                                ])
 
-                        except Exception as e:
-                            error_msg = f"Batch {batch_num}: {str(e)}"
-                            logger.error(f"Failed to compute embeddings for batch {batch_num}: {str(e)}")
-                            return batch_num, chunk_batch, None, batch_files, error_msg
+                                if attempt < max_retries and is_retryable:
+                                    sleep_time = base_delay * (2 ** attempt) + random.uniform(0, 0.5)
+                                    logger.warning(f"Batch {batch_num} failed (attempt {attempt+1}/{max_retries+1}). "
+                                                   f"Retrying in {sleep_time:.1f}s. Error: {e}")
+                                    time.sleep(sleep_time)
+                                    continue
+
+                                error_msg = f"Batch {batch_num}: {str(e)}"
+                                logger.error(f"Failed to compute embeddings for batch {batch_num}: {str(e)}")
+                                return batch_num, chunk_batch, None, batch_files, error_msg
+
+                        # Should not reach here, but just in case
+                        return batch_num, chunk_batch, None, batch_files, f"Batch {batch_num}: Max retries exceeded"
 
                     # Process batches based on max_workers setting
                     if max_workers <= 1:
@@ -496,77 +535,74 @@ def generate_embeddings(
                                 logger.error(f"Failed to process batch {batch_number}: {str(e)}")
                                 files_seen.update(batch_files)
                     else:
-                        # Concurrent processing with producer-consumer pattern
-                        # Workers compute embeddings (parallel), main thread writes to DB (serial)
-                        from queue import Queue
-                        from threading import Thread
-
-                        result_queue = Queue(maxsize=max_workers * 2)  # Bounded queue to limit memory
-                        batch_counter = [0]  # Mutable counter for producer thread
-                        producer_done = [False]
-
-                        def producer():
-                            """Submit batches to executor, put results in queue."""
-                            with ThreadPoolExecutor(max_workers=max_workers) as executor:
-                                pending_futures = []
-
-                                for chunk_batch in batch_generator:
-                                    batch_counter[0] += 1
-                                    batch_num = batch_counter[0]
-
-                                    # Submit compute task
-                                    future = executor.submit(compute_embeddings_only, (batch_num, chunk_batch))
-                                    pending_futures.append(future)
-
-                                    # Check for completed futures and add to queue
-                                    for f in list(pending_futures):
-                                        if f.done():
-                                            try:
-                                                result_queue.put(f.result())
-                                            except Exception as e:
-                                                logger.error(f"Future raised exception: {e}")
-                                            pending_futures.remove(f)
-
-                                # Wait for remaining futures
-                                for future in as_completed(pending_futures):
-                                    try:
-                                        result_queue.put(future.result())
-                                    except Exception as e:
-                                        logger.error(f"Future raised exception: {e}")
-
-                            producer_done[0] = True
-                            result_queue.put(None)  # Sentinel to signal completion
-
-                        # Start producer thread
-                        producer_thread = Thread(target=producer, daemon=True)
-                        producer_thread.start()
-
+                        # Concurrent processing - main thread iterates batches (SQLite safe),
+                        # workers compute embeddings (parallel), main thread writes to DB (serial)
                         if progress_callback:
                             progress_callback(f"Processing with {max_workers} concurrent embedding workers...")
 
-                        # Consumer: main thread writes to DB (serial, no contention)
-                        completed = 0
-                        while True:
-                            result = result_queue.get()
-                            if result is None:  # Sentinel
-                                break
+                        with ThreadPoolExecutor(max_workers=max_workers) as executor:
+                            pending_futures = {}  # future -> (batch_num, chunk_batch)
+                            completed_batches = 0
+                            last_reported_batch = 0
 
-                            batch_num, chunk_batch, embeddings_numpy, batch_files, error = result
+                            def process_completed_futures():
+                                """Process any completed futures and write to DB."""
+                                nonlocal total_chunks_created, total_files_processed, completed_batches, last_reported_batch
+                                done_futures = [f for f in pending_futures if f.done()]
+                                for f in done_futures:
+                                    try:
+                                        batch_num, chunk_batch, embeddings_numpy, batch_files, error = f.result()
+                                        if embeddings_numpy is not None and error is None:
+                                            # Write to DB in main thread (no contention)
+                                            vector_store.add_chunks_batch_numpy(chunk_batch, embeddings_numpy)
+                                            total_chunks_created += len(chunk_batch)
+                                        files_seen.update(batch_files)
+                                        total_files_processed = len(files_seen)
+                                        completed_batches += 1
+                                    except Exception as e:
+                                        logger.error(f"Future raised exception: {e}")
+                                        completed_batches += 1
+                                    del pending_futures[f]
 
-                            if embeddings_numpy is not None and error is None:
-                                # Write to DB in main thread (no contention)
-                                vector_store.add_chunks_batch_numpy(chunk_batch, embeddings_numpy)
-                                total_chunks_created += len(chunk_batch)
+                                # Report progress based on completed batches (every 5 batches)
+                                if progress_callback and completed_batches >= last_reported_batch + 5:
+                                    progress_callback(f"  Batch {completed_batches}: {total_chunks_created} chunks, {total_files_processed} files")
+                                    last_reported_batch = completed_batches
 
-                            files_seen.update(batch_files)
-                            total_files_processed = len(files_seen)
-                            completed += 1
+                            # Iterate batches in main thread (SQLite cursor is main-thread bound)
+                            for chunk_batch in batch_generator:
+                                batch_number += 1
 
-                            if progress_callback and completed % 10 == 0:
-                                progress_callback(f"  Completed {completed} batches: {total_chunks_created} chunks")
+                                # Submit compute task to worker pool
+                                future = executor.submit(compute_embeddings_only, (batch_number, chunk_batch))
+                                pending_futures[future] = batch_number
 
-                        producer_thread.join()
-                        batch_number = batch_counter[0]
+                                # Process any completed futures to free memory and write to DB
+                                process_completed_futures()
+
+                                # Backpressure: wait if too many pending
+                                while len(pending_futures) >= max_workers * 2:
+                                    process_completed_futures()
+                                    if len(pending_futures) >= max_workers * 2:
+                                        time.sleep(0.1)  # time is imported at module level
+
+                            # Wait for remaining futures
+                            for future in as_completed(list(pending_futures.keys())):
+                                try:
+                                    batch_num, chunk_batch, embeddings_numpy, batch_files, error = future.result()
+                                    if embeddings_numpy is not None and error is None:
+                                        vector_store.add_chunks_batch_numpy(chunk_batch, embeddings_numpy)
+                                        total_chunks_created += len(chunk_batch)
+                                    files_seen.update(batch_files)
+                                    total_files_processed = len(files_seen)
+                                    completed_batches += 1
+
+                                    # Report progress for remaining batches
+                                    if progress_callback and completed_batches >= last_reported_batch + 5:
+                                        progress_callback(f"  Batch {completed_batches}: {total_chunks_created} chunks, {total_files_processed} files")
+                                        last_reported_batch = completed_batches
+                                except Exception as e:
+                                    logger.error(f"Future raised exception: {e}")
 
                 # Notify before ANN index finalization (happens when bulk_insert context exits)
                 if progress_callback:
@@ -575,7 +611,7 @@ def generate_embeddings(
     except Exception as e:
         # Cleanup on error to prevent process hanging
         try:
-            clear_embedder_cache()
+            _cleanup_fastembed_resources()
             gc.collect()
         except Exception:
             pass
@@ -586,7 +622,7 @@ def generate_embeddings(
     # Final cleanup: release ONNX resources to allow process exit
     # This is critical - without it, ONNX Runtime threads prevent Python from exiting
     try:
-        clear_embedder_cache()
+        _cleanup_fastembed_resources()
         gc.collect()
     except Exception:
         pass
@@ -647,7 +683,7 @@ def generate_embeddings_recursive(
     progress_callback: Optional[callable] = None,
     use_gpu: Optional[bool] = None,
     max_tokens_per_batch: Optional[int] = None,
-    max_workers: int = 1,
+    max_workers: Optional[int] = None,
 ) -> Dict[str, any]:
     """Generate embeddings for all index databases in a project recursively.
 
@@ -667,8 +703,9 @@ def generate_embeddings_recursive(
         max_tokens_per_batch: Maximum tokens per batch for token-aware batching.
                              If None, attempts to get from embedder.max_tokens,
                              then falls back to 8000. If set, overrides automatic detection.
-        max_workers: Maximum number of concurrent API calls (default: 1 for sequential).
-                    Recommended: 2-4 for LiteLLM API backends.
+        max_workers: Maximum number of concurrent API calls.
+                    If None, uses dynamic defaults: 1 for fastembed (CPU bound),
+                    4 for litellm (network I/O bound).
 
     Returns:
         Aggregated result dictionary with generation statistics
@@ -682,6 +719,14 @@ def generate_embeddings_recursive(
         model_profile = default_model
     if use_gpu is None:
         use_gpu = default_gpu
+
+    # Set dynamic max_workers default based on backend type
+    if max_workers is None:
+        if embedding_backend == "litellm":
+            max_workers = 4
+        else:
+            max_workers = 1
+
     # Discover all _index.db files
     index_files = discover_all_index_dbs(index_root)
 
@@ -740,9 +785,8 @@ def generate_embeddings_recursive(
     # Final cleanup after processing all indexes
     # Each generate_embeddings() call does its own cleanup, but do a final one to be safe
     try:
-        if SEMANTIC_AVAILABLE:
-            clear_embedder_cache()
-            gc.collect()
+        _cleanup_fastembed_resources()
+        gc.collect()
     except Exception:
         pass
 
diff --git a/codex-lens/src/codexlens/semantic/__init__.py b/codex-lens/src/codexlens/semantic/__init__.py
index 9b3483af..b9bd040f 100644
--- a/codex-lens/src/codexlens/semantic/__init__.py
+++ b/codex-lens/src/codexlens/semantic/__init__.py
@@ -14,6 +14,7 @@ from __future__ import annotations
 SEMANTIC_AVAILABLE = False
 SEMANTIC_BACKEND: str | None = None
 GPU_AVAILABLE = False
+LITELLM_AVAILABLE = False
 _import_error: str | None = None
 
 
@@ -76,18 +77,40 @@ from .factory import get_embedder as get_embedder_factory
 
 # Optional: LiteLLMEmbedderWrapper (only if ccw-litellm is installed)
 try:
+    import ccw_litellm  # noqa: F401
     from .litellm_embedder import LiteLLMEmbedderWrapper
-    _LITELLM_AVAILABLE = True
+    LITELLM_AVAILABLE = True
 except ImportError:
     LiteLLMEmbedderWrapper = None
-    _LITELLM_AVAILABLE = False
+    LITELLM_AVAILABLE = False
+
+
+def is_embedding_backend_available(backend: str) -> tuple[bool, str | None]:
+    """Check whether a specific embedding backend can be used.
+
+    Notes:
+    - "fastembed" requires the optional semantic deps (pip install codexlens[semantic]).
+    - "litellm" requires ccw-litellm to be installed in the same environment.
+    """
+    backend = (backend or "").strip().lower()
+    if backend == "fastembed":
+        if SEMANTIC_AVAILABLE:
+            return True, None
+        return False, _import_error or "fastembed not available. Install with: pip install codexlens[semantic]"
+    if backend == "litellm":
+        if LITELLM_AVAILABLE:
+            return True, None
+        return False, "ccw-litellm not available. Install with: pip install ccw-litellm"
+    return False, f"Invalid embedding backend: {backend}. Must be 'fastembed' or 'litellm'."
 
 
 __all__ = [
     "SEMANTIC_AVAILABLE",
     "SEMANTIC_BACKEND",
     "GPU_AVAILABLE",
+    "LITELLM_AVAILABLE",
     "check_semantic_available",
+    "is_embedding_backend_available",
     "check_gpu_available",
     "BaseEmbedder",
     "get_embedder_factory",
diff --git a/codex-lens/tests/test_embedding_backend_availability.py b/codex-lens/tests/test_embedding_backend_availability.py
new file mode 100644
index 00000000..70fa5672
--- /dev/null
+++ b/codex-lens/tests/test_embedding_backend_availability.py
@@ -0,0 +1,67 @@
+"""Tests for embedding backend availability checks.
+
+These tests validate the logic used to decide whether embeddings generation
+should run for a given backend (fastembed vs. litellm).
+"""
+
+import pytest
+
+
+def test_is_embedding_backend_available_invalid_backend(monkeypatch):
+    import codexlens.semantic as semantic
+
+    ok, err = semantic.is_embedding_backend_available("nope")
+    assert ok is False
+    assert "Invalid embedding backend" in (err or "")
+
+
+def test_is_embedding_backend_available_fastembed_true(monkeypatch):
+    import codexlens.semantic as semantic
+
+    monkeypatch.setattr(semantic, "SEMANTIC_AVAILABLE", True)
+    ok, err = semantic.is_embedding_backend_available("fastembed")
+    assert ok is True
+    assert err is None
+
+
+def test_is_embedding_backend_available_fastembed_false(monkeypatch):
+    import codexlens.semantic as semantic
+
+    monkeypatch.setattr(semantic, "SEMANTIC_AVAILABLE", False)
+    monkeypatch.setattr(semantic, "_import_error", "fastembed missing")
+    ok, err = semantic.is_embedding_backend_available("fastembed")
+    assert ok is False
+    assert err == "fastembed missing"
+
+
+def test_is_embedding_backend_available_litellm_true(monkeypatch):
+    import codexlens.semantic as semantic
+
+    monkeypatch.setattr(semantic, "LITELLM_AVAILABLE", True)
+    ok, err = semantic.is_embedding_backend_available("litellm")
+    assert ok is True
+    assert err is None
+
+
+def test_is_embedding_backend_available_litellm_false(monkeypatch):
+    import codexlens.semantic as semantic
+
+    monkeypatch.setattr(semantic, "LITELLM_AVAILABLE", False)
+    ok, err = semantic.is_embedding_backend_available("litellm")
+    assert ok is False
+    assert "ccw-litellm not available" in (err or "")
+
+
+def test_generate_embeddings_uses_backend_availability_gate(monkeypatch, tmp_path):
+    from codexlens.cli import embedding_manager
+
+    monkeypatch.setattr(
+        embedding_manager,
+        "is_embedding_backend_available",
+        lambda _backend: (False, "blocked"),
+    )
+
+    result = embedding_manager.generate_embeddings(tmp_path / "_index.db", embedding_backend="litellm")
+    assert result["success"] is False
+    assert result["error"] == "blocked"
+