diff --git a/engine/pipeline/preset_loader.py b/engine/pipeline/preset_loader.py
new file mode 100644
index 0000000..cf9467c
--- /dev/null
+++ b/engine/pipeline/preset_loader.py
@@ -0,0 +1,224 @@
+"""
+Preset loader - Loads presets from TOML files.
+
+Supports:
+- Built-in presets.toml in the package
+- User overrides in ~/.config/mainline/presets.toml
+- Local override in ./presets.toml
+- Fallback DEFAULT_PRESET when loading fails
+"""
+
+import os
+from pathlib import Path
+from typing import Any
+
+import tomllib
+
+DEFAULT_PRESET: dict[str, Any] = {
+    "description": "Default fallback preset",
+    "source": "headlines",
+    "display": "terminal",
+    "camera": "vertical",
+    "effects": ["hud"],
+    "viewport": {"width": 80, "height": 24},
+    "camera_speed": 1.0,
+    "firehose_enabled": False,
+}
+
+
+def get_preset_paths() -> list[Path]:
+    """Get list of preset file paths in load order (later overrides earlier)."""
+    paths = []
+
+    builtin = Path(__file__).parent.parent / "presets.toml"
+    if builtin.exists():
+        paths.append(builtin)
+
+    user_config = Path(os.path.expanduser("~/.config/mainline/presets.toml"))
+    if user_config.exists():
+        paths.append(user_config)
+
+    local = Path("presets.toml")
+    if local.exists():
+        paths.append(local)
+
+    return paths
+
+
+def load_presets() -> dict[str, Any]:
+    """Load all presets, merging from multiple sources."""
+    merged: dict[str, Any] = {"presets": {}, "sensors": {}, "effect_configs": {}}
+
+    for path in get_preset_paths():
+        try:
+            with open(path, "rb") as f:
+                data = tomllib.load(f)
+
+            if "presets" in data:
+                merged["presets"].update(data["presets"])
+
+            if "sensors" in data:
+                merged["sensors"].update(data["sensors"])
+
+            if "effect_configs" in data:
+                merged["effect_configs"].update(data["effect_configs"])
+
+        except Exception as e:
+            print(f"Warning: Failed to load presets from {path}: {e}")
+
+    return merged
+
+
+def get_preset(name: str) -> dict[str, Any] | None:
+    """Get a preset by name."""
+    presets = load_presets()
+    return presets.get("presets", {}).get(name)
+
+
+def list_preset_names() -> list[str]:
+    """List all available preset names."""
+    presets = load_presets()
+    return list(presets.get("presets", {}).keys())
+
+
+def get_sensor_config(name: str) -> dict[str, Any] | None:
+    """Get sensor configuration by name."""
+    sensors = load_presets()
+    return sensors.get("sensors", {}).get(name)
+
+
+def get_effect_config(name: str) -> dict[str, Any] | None:
+    """Get effect configuration by name."""
+    configs = load_presets()
+    return configs.get("effect_configs", {}).get(name)
+
+
+def get_all_effect_configs() -> dict[str, Any]:
+    """Get all effect configurations."""
+    configs = load_presets()
+    return configs.get("effect_configs", {})
+
+
+def get_preset_or_default(name: str) -> dict[str, Any]:
+    """Get a preset by name, or return DEFAULT_PRESET if not found."""
+    preset = get_preset(name)
+    if preset is not None:
+        return preset
+    return DEFAULT_PRESET.copy()
+
+
+def ensure_preset_available(name: str | None) -> dict[str, Any]:
+    """Ensure a preset is available, falling back to DEFAULT_PRESET."""
+    if name is None:
+        return DEFAULT_PRESET.copy()
+    return get_preset_or_default(name)
+
+
+class PresetValidationError(Exception):
+    """Raised when preset validation fails."""
+
+    pass
+
+
+def validate_preset(preset: dict[str, Any]) -> list[str]:
+    """Validate a preset and return list of errors (empty if valid)."""
+    errors: list[str] = []
+
+    required_fields = ["source", "display", "effects"]
+    for field in required_fields:
+        if field not in preset:
+            errors.append(f"Missing required field: {field}")
+
+    if "effects" in preset:
+        if not isinstance(preset["effects"], list):
+            errors.append("'effects' must be a list")
+        else:
+            for effect in preset["effects"]:
+                if not isinstance(effect, str):
+                    errors.append(
+                        f"Effect must be string, got {type(effect)}: {effect}"
+                    )
+
+    if "viewport" in preset:
+        viewport = preset["viewport"]
+        if not isinstance(viewport, dict):
+            errors.append("'viewport' must be a dict")
+        else:
+            if "width" in viewport and not isinstance(viewport["width"], int):
+                errors.append("'viewport.width' must be an int")
+            if "height" in viewport and not isinstance(viewport["height"], int):
+                errors.append("'viewport.height' must be an int")
+
+    return errors
+
+
+def validate_signal_path(stages: list[str]) -> list[str]:
+    """Validate signal path for circular dependencies and connectivity.
+
+    Args:
+        stages: List of stage names in execution order
+
+    Returns:
+        List of errors (empty if valid)
+    """
+    errors: list[str] = []
+
+    if not stages:
+        errors.append("Signal path is empty")
+        return errors
+
+    seen: set[str] = set()
+    for i, stage in enumerate(stages):
+        if stage in seen:
+            errors.append(
+                f"Circular dependency: '{stage}' appears multiple times at index {i}"
+            )
+        seen.add(stage)
+
+    return errors
+
+
+def generate_preset_toml(
+    name: str,
+    source: str = "headlines",
+    display: str = "terminal",
+    effects: list[str] | None = None,
+    viewport_width: int = 80,
+    viewport_height: int = 24,
+    camera: str = "vertical",
+    camera_speed: float = 1.0,
+    firehose_enabled: bool = False,
+) -> str:
+    """Generate a TOML preset skeleton with default values.
+
+    Args:
+        name: Preset name
+        source: Data source name
+        display: Display backend
+        effects: List of effect names
+        viewport_width: Viewport width in columns
+        viewport_height: Viewport height in rows
+        camera: Camera mode
+        camera_speed: Camera scroll speed
+        firehose_enabled: Enable firehose mode
+
+    Returns:
+        TOML string for the preset
+    """
+
+    if effects is None:
+        effects = ["fade", "hud"]
+
+    output = []
+    output.append(f"[presets.{name}]")
+    output.append(f'description = "Auto-generated preset: {name}"')
+    output.append(f'source = "{source}"')
+    output.append(f'display = "{display}"')
+    output.append(f'camera = "{camera}"')
+    output.append(f"effects = {effects}")
+    output.append(f"viewport_width = {viewport_width}")
+    output.append(f"viewport_height = {viewport_height}")
+    output.append(f"camera_speed = {camera_speed}")
+    output.append(f"firehose_enabled = {str(firehose_enabled).lower()}")
+
+    return "\n".join(output)
diff --git a/presets.toml b/presets.toml
new file mode 100644
index 0000000..864e320
--- /dev/null
+++ b/presets.toml
@@ -0,0 +1,106 @@
+# Mainline Presets Configuration
+# Human- and machine-readable preset definitions
+#
+# Format: TOML
+# Usage: mainline --preset <name>
+#
+# Built-in presets can be overridden by user presets in:
+#   - ~/.config/mainline/presets.toml
+#   - ./presets.toml (local override)
+
+[presets.demo]
+description = "Demo mode with effect cycling and camera modes"
+source = "headlines"
+display = "pygame"
+camera = "vertical"
+effects = ["noise", "fade", "glitch", "firehose", "hud"]
+viewport_width = 80
+viewport_height = 24
+camera_speed = 1.0
+firehose_enabled = true
+
+[presets.poetry]
+description = "Poetry feed with subtle effects"
+source = "poetry"
+display = "pygame"
+camera = "vertical"
+effects = ["fade", "hud"]
+viewport_width = 80
+viewport_height = 24
+camera_speed = 0.5
+firehose_enabled = false
+
+[presets.pipeline]
+description = "Pipeline visualization mode"
+source = "pipeline"
+display = "terminal"
+camera = "trace"
+effects = ["hud"]
+viewport_width = 80
+viewport_height = 24
+camera_speed = 1.0
+firehose_enabled = false
+
+[presets.websocket]
+description = "WebSocket display mode"
+source = "headlines"
+display = "websocket"
+camera = "vertical"
+effects = ["noise", "fade", "glitch", "hud"]
+viewport_width = 80
+viewport_height = 24
+camera_speed = 1.0
+firehose_enabled = false
+
+[presets.sixel]
+description = "Sixel graphics display mode"
+source = "headlines"
+display = "sixel"
+camera = "vertical"
+effects = ["noise", "fade", "glitch", "hud"]
+viewport_width = 80
+viewport_height = 24
+camera_speed = 1.0
+firehose_enabled = false
+
+[presets.firehose]
+description = "High-speed firehose mode"
+source = "headlines"
+display = "pygame"
+camera = "vertical"
+effects = ["noise", "fade", "glitch", "firehose", "hud"]
+viewport_width = 80
+viewport_height = 24
+camera_speed = 2.0
+firehose_enabled = true
+
+# Sensor configuration (for future use with param bindings)
+[sensors.mic]
+enabled = false
+threshold_db = 50.0
+
+[sensors.oscillator]
+enabled = false
+waveform = "sine"
+frequency = 1.0
+
+# Effect configurations
+[effect_configs.noise]
+enabled = true
+intensity = 1.0
+
+[effect_configs.fade]
+enabled = true
+intensity = 1.0
+
+[effect_configs.glitch]
+enabled = true
+intensity = 0.5
+
+[effect_configs.firehose]
+enabled = true
+intensity = 1.0
+
+[effect_configs.hud]
+enabled = true
+intensity = 1.0