diff --git a/CHANGELOG.md b/CHANGELOG.md
index bee9538..851b0b3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,12 @@
+## [Upcoming]
+
+### Added
+- **Compilation database workspace support**: Monocle now detects and supports `compile_commands.json` and `compile_flags.txt` workspaces, routing them to sourcekit-lsp with `--default-workspace-type compilationDatabase`.
+
+### Fixed
+- **SourceKit-LSP launch arguments**: Removed deprecated `--build-path` that overrode `--scratch-path`, and stopped overriding the `HOME` environment variable for SwiftPM workspaces.
+- **SourceKit-LSP version detection**: `monocle --version` now queries `swift --version` instead of the removed `sourcekit-lsp --version` flag.
+
 ## [1.6.0]
 
 ### Added
diff --git a/Sources/MonocleCLI/MonocleCommand.swift b/Sources/MonocleCLI/MonocleCommand.swift
index 4188652..37d716b 100644
--- a/Sources/MonocleCLI/MonocleCommand.swift
+++ b/Sources/MonocleCLI/MonocleCommand.swift
@@ -7,7 +7,7 @@ import MonocleCore
 struct MonocleCommand: AsyncParsableCommand {
   /// Version string shown when invoking `monocle --version`.
   private static let versionDescription: String = {
-    let sourceKitVersion = (try? SourceKitService.detectSourceKitVersion()) ?? "unknown"
+    let sourceKitVersion = SourceKitService.detectSourceKitVersion()
     return "monocle \(toolVersion)\nSourceKit-LSP: \(sourceKitVersion)"
   }()
 
diff --git a/Sources/MonocleCore/LspSession.swift b/Sources/MonocleCore/LspSession.swift
index d221405..26224a8 100644
--- a/Sources/MonocleCore/LspSession.swift
+++ b/Sources/MonocleCore/LspSession.swift
@@ -352,7 +352,7 @@ public actor LspSession {
     switch workspace.kind {
     case .swiftPackage:
       (maxAttempts: 15, delayNanoseconds: 800_000_000) // SwiftPM often needs extra time to surface build settings
-    case .xcodeProject, .xcodeWorkspace:
+    case .xcodeProject, .xcodeWorkspace, .compilationDatabase:
       (maxAttempts: 5, delayNanoseconds: 350_000_000)
     }
   }
diff --git a/Sources/MonocleCore/PackageCheckoutLocator.swift b/Sources/MonocleCore/PackageCheckoutLocator.swift
index 9af9679..21b99e9 100644
--- a/Sources/MonocleCore/PackageCheckoutLocator.swift
+++ b/Sources/MonocleCore/PackageCheckoutLocator.swift
@@ -38,6 +38,8 @@ public enum PackageCheckoutLocator {
   /// - Throws: `MonocleError.buildServerConfigurationMissing` when an Xcode workspace lacks `buildServer.json`.
   /// - Throws: `MonocleError.ioError` when the build server configuration cannot be read or decoded.
   public static func checkedOutPackages(in workspace: Workspace) throws -> [PackageCheckout] {
+    guard workspace.kind != .compilationDatabase else { return [] }
+
     let checkoutsRootURL = try checkoutsRootURL(for: workspace)
     let packageDirectories = listChildDirectories(at: checkoutsRootURL)
 
@@ -63,6 +65,8 @@ public enum PackageCheckoutLocator {
       }
       let buildRootPath = try buildRootPath(fromWorkspaceRootPath: workspace.rootPath)
       return try xcodeCheckoutsRootURL(fromBuildRootPath: buildRootPath)
+    case .compilationDatabase:
+      throw MonocleError.ioError("Compilation database workspaces do not have Swift package checkouts.")
     }
   }
 
diff --git a/Sources/MonocleCore/SourceKitService.swift b/Sources/MonocleCore/SourceKitService.swift
index 47d3df0..5adda1f 100644
--- a/Sources/MonocleCore/SourceKitService.swift
+++ b/Sources/MonocleCore/SourceKitService.swift
@@ -198,6 +198,8 @@ public actor SourceKitService {
       } else {
         throw MonocleError.buildServerConfigurationMissing(workspaceRootPath: workspace.rootPath)
       }
+    case .compilationDatabase:
+      sourceKitArguments.append(contentsOf: ["--default-workspace-type", "compilationDatabase"])
     }
 
     var environment = ProcessInfo.processInfo.environment
@@ -205,7 +207,6 @@ public actor SourceKitService {
       environment["DEVELOPER_DIR"] = developerDirectory
     }
     if shouldUseSwiftPMBuildSystem {
-      environment["HOME"] = workspace.rootPath
       environment["SWIFTPM_CACHE_PATH"] = URL(fileURLWithPath: workspace.rootPath)
         .appendingPathComponent(".swiftpm-cache").path
     }
@@ -222,8 +223,6 @@ public actor SourceKitService {
     arguments.append(contentsOf: ["--default-workspace-type", "swiftPM"])
     let scratchPath = URL(fileURLWithPath: workspaceRootPath).appendingPathComponent(".sourcekit-lsp-scratch").path
     arguments.append(contentsOf: ["--scratch-path", scratchPath])
-    let buildPath = URL(fileURLWithPath: workspaceRootPath).appendingPathComponent(".build").path
-    arguments.append(contentsOf: ["--build-path", buildPath])
     arguments.append(contentsOf: ["--configuration", "debug"])
   }
 
@@ -244,30 +243,50 @@ public actor SourceKitService {
 
   /// Determines whether a non-SwiftPM workspace should prefer the build server protocol.
   private func shouldPreferBuildServer(for workspace: Workspace) -> Bool {
-    guard workspace.kind != .swiftPackage else { return false }
+    if workspace.kind == .swiftPackage || workspace.kind == .compilationDatabase {
+      return false
+    }
 
     let buildServerPath = URL(fileURLWithPath: workspace.rootPath).appendingPathComponent("buildServer.json")
     return FileManager.default.fileExists(atPath: buildServerPath.path)
   }
 
-  /// Attempts to query the SourceKit-LSP version by running `sourcekit-lsp --version`.
+  /// Attempts to detect the SourceKit-LSP version by querying the Swift toolchain version.
+  ///
+  /// Since `sourcekit-lsp --version` is no longer supported, this runs `swift --version`
+  /// and extracts a concise version string from the output.
   ///
-  /// - Returns: Version string reported by the `sourcekit-lsp --version` invocation.
-  /// - Throws: `MonocleError.lspLaunchFailed` when the process exits with a non-zero status.
-  public static func detectSourceKitVersion() throws -> String {
+  /// - Returns: A version string such as "Apple Swift version 6.3.1", or "unknown".
+  public static func detectSourceKitVersion() -> String {
     let process = Process()
     let pipe = Pipe()
     process.standardOutput = pipe
     process.standardError = Pipe()
     process.executableURL = URL(fileURLWithPath: "/usr/bin/xcrun")
-    process.arguments = ["sourcekit-lsp", "--version"]
-    try process.run()
-    process.waitUntilExit()
+    process.arguments = ["swift", "--version"]
+    do {
+      try process.run()
+      process.waitUntilExit()
+    } catch {
+      return "unknown"
+    }
     guard process.terminationStatus == 0 else {
-      throw MonocleError.lspLaunchFailed("sourcekit-lsp --version returned non-zero exit code")
+      return "unknown"
     }
 
     let data = pipe.fileHandleForReading.readDataToEndOfFile()
-    return String(data: data, encoding: .utf8)?.trimmingCharacters(in: .whitespacesAndNewlines) ?? "unknown"
+    let output = String(data: data, encoding: .utf8) ?? ""
+    let firstLine = output.split(separator: "\n").first?.trimmingCharacters(in: .whitespacesAndNewlines) ?? ""
+
+    // Try to extract a concise version like "Apple Swift version 6.3.1"
+    if let range = firstLine.range(of: "Swift version ") {
+      let suffix = String(firstLine[range.upperBound...])
+      let components = suffix.split(separator: " ")
+      if let version = components.first {
+        return "Swift version \(version)"
+      }
+    }
+
+    return firstLine.isEmpty ? "unknown" : firstLine
   }
 }
diff --git a/Sources/MonocleCore/Workspace.swift b/Sources/MonocleCore/Workspace.swift
index 98620f2..fc74bb1 100644
--- a/Sources/MonocleCore/Workspace.swift
+++ b/Sources/MonocleCore/Workspace.swift
@@ -12,6 +12,8 @@ public struct Workspace: Equatable, Hashable, Sendable, Codable {
     case xcodeProject
     /// An Xcode workspace contained in an `.xcworkspace` bundle.
     case xcodeWorkspace
+    /// A workspace using a compilation database (`compile_commands.json` or `compile_flags.txt`).
+    case compilationDatabase
   }
 
   /// Absolute path to the workspace root directory.
diff --git a/Sources/MonocleCore/WorkspaceLocator.swift b/Sources/MonocleCore/WorkspaceLocator.swift
index 3f4a39b..616818e 100644
--- a/Sources/MonocleCore/WorkspaceLocator.swift
+++ b/Sources/MonocleCore/WorkspaceLocator.swift
@@ -31,6 +31,10 @@ public enum WorkspaceLocator {
         return Workspace(rootPath: currentURL.path, kind: .swiftPackage)
       }
 
+      if hasCompilationDatabase(in: currentURL, fileManager: fileManager) {
+        return Workspace(rootPath: currentURL.path, kind: .compilationDatabase)
+      }
+
       let parent = currentURL.deletingLastPathComponent()
       if parent.path == currentURL.path {
         throw MonocleError.workspaceNotFound
@@ -73,12 +77,19 @@ public enum WorkspaceLocator {
       if fileManager.fileExists(atPath: url.appendingPathComponent("Package.swift").path) {
         return Workspace(rootPath: url.path, kind: .swiftPackage)
       }
+      if hasCompilationDatabase(in: url, fileManager: fileManager) {
+        return Workspace(rootPath: url.path, kind: .compilationDatabase)
+      }
     }
 
     if fileManager.fileExists(atPath: url.appendingPathComponent("Package.swift").path) {
       return Workspace(rootPath: url.path, kind: .swiftPackage)
     }
 
+    if hasCompilationDatabase(in: url, fileManager: fileManager) {
+      return Workspace(rootPath: url.path, kind: .compilationDatabase)
+    }
+
     throw MonocleError.workspaceNotFound
   }
 
@@ -167,4 +178,15 @@ public enum WorkspaceLocator {
 
     return isDirectory.boolValue
   }
+
+  /// Checks whether a directory contains a compilation database or compile flags file.
+  ///
+  /// - Parameters:
+  ///   - directory: Directory to inspect.
+  ///   - fileManager: File manager used for the query.
+  /// - Returns: `true` when `compile_commands.json` or `compile_flags.txt` exists.
+  private static func hasCompilationDatabase(in directory: URL, fileManager: FileManager) -> Bool {
+    let candidates = ["compile_commands.json", "compile_flags.txt"]
+    return candidates.contains { fileManager.fileExists(atPath: directory.appendingPathComponent($0).path) }
+  }
 }
diff --git a/Sources/MonocleCore/XcodeSwiftPackageDependencyLocator.swift b/Sources/MonocleCore/XcodeSwiftPackageDependencyLocator.swift
index 71bb555..68ece25 100644
--- a/Sources/MonocleCore/XcodeSwiftPackageDependencyLocator.swift
+++ b/Sources/MonocleCore/XcodeSwiftPackageDependencyLocator.swift
@@ -62,7 +62,7 @@ public enum XcodeSwiftPackageDependencyLocator {
       }
       return nil
 
-    case .swiftPackage:
+    case .swiftPackage, .compilationDatabase:
       return nil
     }
   }
diff --git a/Tests/MonocleCoreTests/WorkspaceLocatorTests.swift b/Tests/MonocleCoreTests/WorkspaceLocatorTests.swift
index 4ae461f..41e4296 100644
--- a/Tests/MonocleCoreTests/WorkspaceLocatorTests.swift
+++ b/Tests/MonocleCoreTests/WorkspaceLocatorTests.swift
@@ -57,4 +57,90 @@ final class WorkspaceLocatorTests {
     #expect(workspace.kind == .xcodeProject)
     #expect(resolvedWorkspaceRootPath == resolvedTemporaryRootPath)
   }
+
+  @Test func autoDetectionFindsCompilationDatabaseWorkspace() throws {
+    let fileManager = FileManager.default
+    let temporaryDirectory = fileManager.temporaryDirectory
+      .appendingPathComponent(UUID().uuidString, isDirectory: true)
+    defer { try? fileManager.removeItem(at: temporaryDirectory) }
+
+    try fileManager.createDirectory(at: temporaryDirectory, withIntermediateDirectories: true)
+
+    let compileCommandsURL = temporaryDirectory.appendingPathComponent("compile_commands.json")
+    try "[]".write(to: compileCommandsURL, atomically: true, encoding: .utf8)
+
+    let sourcesDirectory = temporaryDirectory.appendingPathComponent("Sources", isDirectory: true)
+    try fileManager.createDirectory(at: sourcesDirectory, withIntermediateDirectories: true)
+
+    let sampleSwiftFileURL = sourcesDirectory.appendingPathComponent("Sample.swift")
+    try "public struct Sample {}".write(to: sampleSwiftFileURL, atomically: true, encoding: .utf8)
+
+    let workspace = try WorkspaceLocator.locate(explicitWorkspacePath: nil, filePath: sampleSwiftFileURL.path)
+    let resolvedWorkspaceRootPath = URL(fileURLWithPath: workspace.rootPath).resolvingSymlinksInPath().path
+    let resolvedTemporaryRootPath = temporaryDirectory.resolvingSymlinksInPath().path
+    #expect(workspace.kind == .compilationDatabase)
+    #expect(resolvedWorkspaceRootPath == resolvedTemporaryRootPath)
+  }
+
+  @Test func autoDetectionPrefersPackageManifestOverCompilationDatabase() throws {
+    let fileManager = FileManager.default
+    let temporaryDirectory = fileManager.temporaryDirectory
+      .appendingPathComponent(UUID().uuidString, isDirectory: true)
+    defer { try? fileManager.removeItem(at: temporaryDirectory) }
+
+    try fileManager.createDirectory(at: temporaryDirectory, withIntermediateDirectories: true)
+
+    let manifestURL = temporaryDirectory.appendingPathComponent("Package.swift")
+    try """
+    // swift-tools-version: 6.2
+    import PackageDescription
+    let package = Package(name: "Example", products: [], targets: [])
+    """.write(to: manifestURL, atomically: true, encoding: .utf8)
+
+    let compileCommandsURL = temporaryDirectory.appendingPathComponent("compile_commands.json")
+    try "[]".write(to: compileCommandsURL, atomically: true, encoding: .utf8)
+
+    let workspace = try WorkspaceLocator.locate(explicitWorkspacePath: nil, filePath: temporaryDirectory.path)
+    #expect(workspace.kind == .swiftPackage)
+  }
+
+  @Test func explicitCompilationDatabasePathResolvesCorrectly() throws {
+    let fileManager = FileManager.default
+    let temporaryDirectory = fileManager.temporaryDirectory
+      .appendingPathComponent(UUID().uuidString, isDirectory: true)
+    defer { try? fileManager.removeItem(at: temporaryDirectory) }
+
+    try fileManager.createDirectory(at: temporaryDirectory, withIntermediateDirectories: true)
+
+    let compileCommandsURL = temporaryDirectory.appendingPathComponent("compile_commands.json")
+    try "[]".write(to: compileCommandsURL, atomically: true, encoding: .utf8)
+
+    let workspace = try WorkspaceLocator.locate(
+      explicitWorkspacePath: temporaryDirectory.path,
+      filePath: temporaryDirectory.path,
+    )
+    let resolvedWorkspaceRootPath = URL(fileURLWithPath: workspace.rootPath).resolvingSymlinksInPath().path
+    let resolvedTemporaryRootPath = temporaryDirectory.resolvingSymlinksInPath().path
+    #expect(workspace.kind == .compilationDatabase)
+    #expect(resolvedWorkspaceRootPath == resolvedTemporaryRootPath)
+  }
+
+  @Test func explicitCompilationDatabasePathViaFilePathResolver() throws {
+    let fileManager = FileManager.default
+    let temporaryDirectory = fileManager.temporaryDirectory
+      .appendingPathComponent(UUID().uuidString, isDirectory: true)
+    defer { try? fileManager.removeItem(at: temporaryDirectory) }
+
+    try fileManager.createDirectory(at: temporaryDirectory, withIntermediateDirectories: true)
+
+    let compileCommandsURL = temporaryDirectory.appendingPathComponent("compile_commands.json")
+    try "[]".write(to: compileCommandsURL, atomically: true, encoding: .utf8)
+
+    let resolvedPath = FilePathResolver.absolutePath(for: temporaryDirectory.path)
+    let workspace = try WorkspaceLocator.locate(
+      explicitWorkspacePath: resolvedPath,
+      filePath: resolvedPath,
+    )
+    #expect(workspace.kind == .compilationDatabase)
+  }
 }