diff --git a/balance-tool/Cargo.toml b/balance-tool/Cargo.toml
new file mode 100644
index 00000000..b86831cc
--- /dev/null
+++ b/balance-tool/Cargo.toml
@@ -0,0 +1,14 @@
+[package]
+name = "balance-tool"
+version = "0.1.0"
+edition = "2021"
+
+[[bin]]
+name = "balance-tool"
+path = "src/main.rs"
+
+[dependencies]
+mc-ai            = { path = "../crates/mc-ai" }
+mc-balance       = { path = "../crates/mc-balance" }
+mc-sim           = { path = "../crates/mc-sim" }
+serde_json.workspace = true
diff --git a/balance-tool/src/main.rs b/balance-tool/src/main.rs
new file mode 100644
index 00000000..12690463
--- /dev/null
+++ b/balance-tool/src/main.rs
@@ -0,0 +1,53 @@
+//! Balance discovery tool — enumerates the strategy space and reports dominant strategies.
+//!
+//! Usage: balance-tool [--races dwarf,human,orc,high_elf] [--steps 1,3,5] [--threshold 0.70]
+//!
+use mc_balance::{
+    report::DominanceReport,
+    strategy::StrategyGrid,
+    tournament::Tournament,
+};
+use mc_sim::GameRunner;
+
+fn main() {
+    // TODO: parse CLI args (clap). Hardcoded defaults for now.
+    let races = vec![
+        "dwarf".to_string(),
+        "human".to_string(),
+        "orc".to_string(),
+        "high_elf".to_string(),
+    ];
+    let axis_steps = vec![1u8, 3, 5];
+    let dominance_threshold = 0.70_f32;
+    let games_per_pair = 4_u32;
+    let max_turns = 100_u32;
+
+    let grid = StrategyGrid::new(races).with_axis_steps(axis_steps);
+    let total = grid.size();
+
+    eprintln!("Generating {total} strategy configurations...");
+    let strategies = grid.generate();
+
+    // Pairs = n*(n-1)/2. With 4 races × 243 configs = 972 strategies → ~472k pairs.
+    // Each pair plays games_per_pair games → ~1.9M games total.
+    // With stub runner this is instant; with real mc-sim expect ~hours on CPU.
+    let pairs = total * (total - 1) / 2;
+    eprintln!(
+        "Running {pairs} pairs × {games_per_pair} games = {} total games...",
+        pairs * games_per_pair as usize,
+    );
+
+    let runner = GameRunner::default();
+    let tournament = Tournament::new(games_per_pair, max_turns);
+    let records = tournament.run(&strategies, &runner);
+
+    let report = DominanceReport::from_records(&records, dominance_threshold);
+    print!("{}", report.summary());
+
+    // JSON dump for further analysis.
+    if let Ok(json) = serde_json::to_string_pretty(&report) {
+        std::fs::write("balance_report.json", json)
+            .expect("failed to write balance_report.json");
+        eprintln!("Full report written to balance_report.json");
+    }
+}