diff --git a/src/apt/sources.rs b/src/apt/sources.rs
index cea888d..82c376e 100644
--- a/src/apt/sources.rs
+++ b/src/apt/sources.rs
@@ -717,7 +717,7 @@ mod tests {
             "Types: deb\nURIs: http://a\nSuites: noble\nComponents: main\n",
         )
         .unwrap();
-        let ctx = Arc::new(Context::new(ContextConfig::Local));
+        let ctx = Arc::new(Context::new(ContextConfig::Local).unwrap());
 
         let origin = SourceOrigin {
             path: path.clone(),
diff --git a/src/build/mod.rs b/src/build/mod.rs
index bbac02a..48da509 100644
--- a/src/build/mod.rs
+++ b/src/build/mod.rs
@@ -1336,9 +1336,9 @@ Provides: virtual-thing (= 2.0), plain-virtual
             assert!(status.success(), "debian/rules {target} failed");
         }
 
-        let ctx = std::sync::Arc::new(crate::context::Context::new(
-            crate::context::ContextConfig::Local,
-        ));
+        let ctx = std::sync::Arc::new(
+            crate::context::Context::new(crate::context::ContextConfig::Local).unwrap(),
+        );
         let native_arch = crate::debian::arch::native().unwrap_or_else(|_| "amd64".into());
         let opts = crate::build::binary::BinaryMetadataOptions {
             profiles,
diff --git a/src/context/api.rs b/src/context/api.rs
index 493bd8f..8a90ec9 100644
--- a/src/context/api.rs
+++ b/src/context/api.rs
@@ -131,8 +131,46 @@ pub struct Context {
 
 impl Context {
     /// Create a context from configuration
-    pub fn new(config: ContextConfig) -> Self {
-        let parent = match &config {
+    ///
+    /// Parent contexts named in the configuration are resolved through the
+    /// global context manager; a dangling parent name is reported as an
+    /// error instead of panicking.
+    ///
+    /// Note that this takes a read lock on the global manager's
+    /// configuration: never call it while holding that lock for writing.
+    /// [`crate::context::ContextManager`] itself goes through
+    /// [`Context::with_lookup`] instead, which takes no locks.
+    pub fn new(config: ContextConfig) -> io::Result<Self> {
+        Self::with_lookup(config, &|name| {
+            crate::context::manager::MANAGER
+                .get_config()
+                .contexts
+                .get(name)
+                .cloned()
+        })
+    }
+
+    /// Create a context from configuration, resolving `parent` context names
+    /// through `lookup` instead of the global context manager.
+    ///
+    /// `lookup` must be lock-free: this is what allows
+    /// [`crate::context::ContextManager`] to build contexts while holding
+    /// (or before the very existence of) its configuration lock. Returns an
+    /// error when a referenced parent does not exist or when the parent
+    /// chain contains a cycle.
+    pub(crate) fn with_lookup(
+        config: ContextConfig,
+        lookup: &dyn Fn(&str) -> Option<ContextConfig>,
+    ) -> io::Result<Self> {
+        Self::with_lookup_inner(config, lookup, &mut Vec::new())
+    }
+
+    fn with_lookup_inner(
+        config: ContextConfig,
+        lookup: &dyn Fn(&str) -> Option<ContextConfig>,
+        chain: &mut Vec<String>,
+    ) -> io::Result<Self> {
+        let parent_name = match &config {
             ContextConfig::Schroot {
                 parent: Some(parent_name),
                 ..
@@ -140,23 +178,37 @@ impl Context {
             | ContextConfig::Unshare {
                 parent: Some(parent_name),
                 ..
-            } => {
-                let config_lock = crate::context::manager::MANAGER.get_config();
-                let parent_config = config_lock
-                    .contexts
-                    .get(parent_name)
-                    .cloned()
-                    .expect("Parent context not found");
-                Some(Arc::new(Context::new(parent_config)))
+            } => parent_name.clone(),
+            _ => {
+                return Ok(Self {
+                    config,
+                    parent: None,
+                    driver: Mutex::new(None),
+                });
             }
-            _ => None,
         };
 
-        Self {
-            config,
-            parent,
-            driver: Mutex::new(None),
+        if chain.iter().any(|name| name == &parent_name) {
+            return Err(io::Error::new(
+                io::ErrorKind::InvalidData,
+                format!("Parent context cycle: '{parent_name}' appears in its own parent chain"),
+            ));
         }
+        let parent_config = lookup(&parent_name).ok_or_else(|| {
+            io::Error::new(
+                io::ErrorKind::NotFound,
+                format!("Parent context '{parent_name}' not found"),
+            )
+        })?;
+        chain.push(parent_name);
+        let parent = Self::with_lookup_inner(parent_config, lookup, chain);
+        chain.pop();
+
+        Ok(Self {
+            config,
+            parent: Some(Arc::new(parent?)),
+            driver: Mutex::new(None),
+        })
     }
 
     /// Create a context with an explicit parent context
diff --git a/src/context/manager.rs b/src/context/manager.rs
index a8df511..13b20fa 100644
--- a/src/context/manager.rs
+++ b/src/context/manager.rs
@@ -3,7 +3,7 @@ use serde::{Deserialize, Serialize};
 use std::collections::HashMap;
 use std::fs;
 use std::io;
-use std::path::PathBuf;
+use std::path::{Path, PathBuf};
 use std::sync::Arc;
 use std::sync::RwLock;
 
@@ -48,26 +48,88 @@ impl ContextManager {
         fs::create_dir_all(config_dir)?;
         let config_path = config_dir.join("contexts.json");
 
-        let config = if config_path.exists() {
-            // Load existing configuration file
-            let content = fs::read_to_string(&config_path)?;
-            serde_json::from_str(&content)
-                .map_err(|e| io::Error::new(io::ErrorKind::InvalidData, e))?
-        } else {
-            // Create a new configuration file
-            Config::default()
+        let mut config = Self::load_config(&config_path);
+
+        // Build the initial Context against the freshly loaded map, before
+        // the manager itself exists: resolution must not go through the
+        // global MANAGER here, since a parented current context would
+        // re-enter its own LazyLock initialization.
+        let initial = match Self::make_context(&config.context, &config.contexts) {
+            Ok(context) => context,
+            Err(e) => {
+                log::error!(
+                    "Cannot build current context '{}' from {}: {e}; falling back to 'local'",
+                    config.context,
+                    config_path.display()
+                );
+                config.context = "local".to_string();
+                Self::make_context("local", &config.contexts).unwrap_or_else(|e| {
+                    // Only possible in a hand-edited configuration without
+                    // any 'local' entry; a plain Local context has no parent
+                    // and cannot fail to build.
+                    log::error!(
+                        "'local' context missing from {}: {e}",
+                        config_path.display()
+                    );
+                    Context::new(ContextConfig::Local).expect("Local context cannot fail")
+                })
+            }
         };
 
         Ok(Self {
-            context: RwLock::new(Arc::new(Self::make_context(
-                config.context.as_str(),
-                &config,
-            ))),
+            context: RwLock::new(Arc::new(initial)),
             config_path,
             config: RwLock::new(config),
         })
     }
 
+    /// Load the configuration stored at `path`.
+    ///
+    /// A missing file yields [`Config::default`]. A file that cannot be read
+    /// or parsed must not take the whole program down: this falls back to
+    /// the default (local-only) configuration and logs an error. Because a
+    /// later [`ContextManager::save`] would otherwise silently overwrite the
+    /// corrupt file and destroy its content, the corrupt file is first
+    /// backed up to `<path>.bak` (best effort).
+    pub(crate) fn load_config(path: &Path) -> Config {
+        if !path.exists() {
+            return Config::default();
+        }
+        let loaded = fs::read_to_string(path).and_then(|content| {
+            serde_json::from_str(&content)
+                .map_err(|e| io::Error::new(io::ErrorKind::InvalidData, e))
+        });
+        match loaded {
+            Ok(config) => config,
+            Err(e) => {
+                log::error!(
+                    "Context configuration {} is corrupt ({e}); using the default (local-only) configuration",
+                    path.display()
+                );
+                Self::backup_corrupt_file(path);
+                Config::default()
+            }
+        }
+    }
+
+    /// Back up a corrupt configuration file (best effort) so a later save
+    /// cannot silently destroy its content.
+    fn backup_corrupt_file(path: &Path) {
+        let mut os = path.as_os_str().to_os_string();
+        os.push(".bak");
+        let backup_path = PathBuf::from(os);
+        match fs::copy(path, &backup_path) {
+            Ok(_) => log::warn!(
+                "Corrupt context configuration backed up to {}",
+                backup_path.display()
+            ),
+            Err(e) => log::warn!(
+                "Could not back up corrupt context configuration to {}: {e}",
+                backup_path.display()
+            ),
+        }
+    }
+
     /// Obtain current ContextManager configuration
     pub fn get_config(&self) -> std::sync::RwLockReadGuard<'_, Config> {
         self.config.read().unwrap()
@@ -77,7 +139,12 @@ impl ContextManager {
     pub fn with_path(path: PathBuf) -> Self {
         let config = Config::default();
         Self {
-            context: RwLock::new(Arc::new(Self::make_context("local", &config))),
+            // 'local' is always present in Config::default and has no
+            // parent, so this cannot fail.
+            context: RwLock::new(Arc::new(
+                Self::make_context("local", &config.contexts)
+                    .expect("default 'local' context cannot fail"),
+            )),
             config_path: path,
             config: RwLock::new(config),
         }
@@ -92,13 +159,22 @@ impl ContextManager {
         Ok(())
     }
 
-    fn make_context(name: &str, config: &Config) -> Context {
-        let context_config = config
-            .contexts
-            .get(name)
-            .cloned()
-            .expect("Context not found in config");
-        Context::new(context_config)
+    /// Build a [`Context`] for `name` from `contexts`.
+    ///
+    /// Lock-free by construction: parent references are resolved against
+    /// `contexts` itself (see [`Context::with_lookup`]), never against the
+    /// manager's configuration lock. This is what keeps [`ContextManager::new`]
+    /// working before the global [`MANAGER`] exists, and what allows callers
+    /// to build contexts without risking a re-entrant read on a lock they
+    /// already hold for writing.
+    fn make_context(name: &str, contexts: &HashMap<String, ContextConfig>) -> io::Result<Context> {
+        let context_config = contexts.get(name).cloned().ok_or_else(|| {
+            io::Error::new(
+                io::ErrorKind::NotFound,
+                format!("Context '{name}' not found in configuration"),
+            )
+        })?;
+        Context::with_lookup(context_config, &|parent| contexts.get(parent).cloned())
     }
 
     /// List contexts from configuration
@@ -124,41 +200,67 @@ impl ContextManager {
 
     /// Remove context from configuration
     pub fn remove_context(&self, name: &str) -> io::Result<()> {
-        let mut config = self.config.write().unwrap();
         if name == "local" {
             return Err(io::Error::new(
                 io::ErrorKind::InvalidInput,
                 "Cannot remove local context",
             ));
         }
-        if config.contexts.remove(name).is_some() {
-            // If we are removing the current context, fallback to local
-            if name == config.context {
-                config.context = "local".to_string();
-                self.set_current_ephemeral(Self::make_context("local", &config));
+        // Mutate under the write lock, snapshotting the remaining map when
+        // the removed context was current; the fallback Context is built
+        // after the lock is released (same discipline as `set_current`).
+        let fallback_contexts = {
+            let mut config = self.config.write().unwrap();
+            if config.contexts.remove(name).is_none() {
+                return Ok(());
             }
+            if name == config.context {
+                // If we are removing the current context, fallback to local
+                config.context = "local".to_string();
+                Some(config.contexts.clone())
+            } else {
+                None
+            }
+        };
 
-            drop(config); // Drop write lock before saving
-            self.save()?;
+        if let Some(contexts) = fallback_contexts {
+            self.set_current_ephemeral(Self::make_context("local", &contexts)?);
         }
+        self.save()?;
         Ok(())
     }
 
     /// Set current context from name (modifying configuration)
     pub fn set_current(&self, name: &str) -> io::Result<()> {
-        let mut config = self.config.write().unwrap();
-        if config.contexts.contains_key(name) {
-            config.context = name.to_string();
-            self.set_current_ephemeral(Self::make_context(name, &config));
-            drop(config); // Drop write lock before saving
-            self.save()?;
-            Ok(())
-        } else {
-            Err(io::Error::new(
+        // Snapshot what `make_context` needs and release the lock before
+        // building the Context. Building resolves parent contexts, and this
+        // code path used to hold the config write guard while re-entering
+        // the same lock for a read — a guaranteed deadlock on a
+        // std::sync::RwLock (same-thread write-then-read).
+        let contexts = self.config.read().unwrap().contexts.clone();
+        if !contexts.contains_key(name) {
+            return Err(io::Error::new(
                 io::ErrorKind::NotFound,
-                format!("Context '{}' not found", name),
-            ))
+                format!("Context '{name}' not found"),
+            ));
         }
+        let context = Self::make_context(name, &contexts)?;
+
+        // Re-take the write lock briefly to commit. The name may have been
+        // removed between snapshot and commit; report the same NotFound
+        // error instead of persisting a dangling current-context reference.
+        let mut config = self.config.write().unwrap();
+        if !config.contexts.contains_key(name) {
+            return Err(io::Error::new(
+                io::ErrorKind::NotFound,
+                format!("Context '{name}' not found"),
+            ));
+        }
+        config.context = name.to_string();
+        drop(config); // Drop write lock before saving
+        self.set_current_ephemeral(context);
+        self.save()?;
+        Ok(())
     }
 
     /// Set current context, without modifying configuration
diff --git a/src/context/mod.rs b/src/context/mod.rs
index c7b0c6d..4ad8982 100644
--- a/src/context/mod.rs
+++ b/src/context/mod.rs
@@ -76,7 +76,7 @@ mod tests {
         let src_file = temp_dir.path().join("src.txt");
         fs::write(&src_file, "local").unwrap();
 
-        let ctx = Context::new(ContextConfig::Local);
+        let ctx = Context::new(ContextConfig::Local).unwrap();
         let dest = ctx.ensure_available(&src_file, "/tmp").unwrap();
 
         // Should return a path that exists and has the same content
@@ -155,10 +155,147 @@ mod tests {
         assert!(mgr.list_contexts().contains(&"local".to_string()));
     }
 
+    /// `set_current` on a context whose configuration carries a `parent`
+    /// must complete without deadlocking: building the Context resolves the
+    /// parent chain, which used to re-enter the config lock while
+    /// `set_current` still held it for writing (a guaranteed deadlock on a
+    /// std::sync::RwLock, same-thread write-then-read).
+    #[test]
+    fn test_set_current_parented_context_no_deadlock() {
+        let temp_file = NamedTempFile::new().unwrap();
+        let mgr = Arc::new(ContextManager::with_path(temp_file.path().to_path_buf()));
+
+        mgr.add_context("base", ContextConfig::Local).unwrap();
+        mgr.add_context(
+            "child",
+            ContextConfig::Schroot {
+                name: "testchroot".to_string(),
+                parent: Some("base".to_string()),
+            },
+        )
+        .unwrap();
+
+        // Run with a timeout so a regression fails fast instead of hanging
+        // the test binary forever.
+        let (tx, rx) = std::sync::mpsc::channel();
+        let worker = {
+            let mgr = mgr.clone();
+            std::thread::spawn(move || {
+                let result = mgr.set_current("child");
+                tx.send(()).expect("receiver still waiting");
+                result
+            })
+        };
+        match rx.recv_timeout(std::time::Duration::from_secs(30)) {
+            Ok(()) => {}
+            Err(std::sync::mpsc::RecvTimeoutError::Timeout) => {
+                panic!("set_current() deadlocked building a parented context");
+            }
+            Err(std::sync::mpsc::RecvTimeoutError::Disconnected) => {
+                panic!("set_current() thread panicked before completing");
+            }
+        }
+        worker.join().unwrap().unwrap();
+        assert_eq!(mgr.current_name(), "child");
+    }
+
+    /// A context referencing a missing parent must produce an error, not a
+    /// panic (the parent lookup used to `.expect()`).
+    #[test]
+    fn test_set_current_dangling_parent_errors() {
+        let temp_file = NamedTempFile::new().unwrap();
+        let mgr = ContextManager::with_path(temp_file.path().to_path_buf());
+        mgr.add_context(
+            "orphan",
+            ContextConfig::Unshare {
+                path: "/some/chroot".to_string(),
+                parent: Some("missing".to_string()),
+            },
+        )
+        .unwrap();
+
+        let err = mgr.set_current("orphan").unwrap_err();
+        assert_eq!(err.kind(), std::io::ErrorKind::NotFound);
+        // Nothing was committed: the current context is unchanged.
+        assert_eq!(mgr.current_name(), "local");
+    }
+
+    /// A parent cycle in a hand-edited configuration must be rejected with
+    /// an error instead of recursing until the stack overflows.
+    #[test]
+    fn test_set_current_parent_cycle_errors() {
+        let temp_file = NamedTempFile::new().unwrap();
+        let mgr = ContextManager::with_path(temp_file.path().to_path_buf());
+        mgr.add_context(
+            "a",
+            ContextConfig::Schroot {
+                name: "schroot-a".to_string(),
+                parent: Some("b".to_string()),
+            },
+        )
+        .unwrap();
+        mgr.add_context(
+            "b",
+            ContextConfig::Unshare {
+                path: "/chroot-b".to_string(),
+                parent: Some("a".to_string()),
+            },
+        )
+        .unwrap();
+
+        let err = mgr.set_current("a").unwrap_err();
+        assert_eq!(err.kind(), std::io::ErrorKind::InvalidData);
+    }
+
+    /// A corrupt contexts.json must not take the manager down:
+    /// `load_config` falls back to the default (local-only) configuration,
+    /// keeps the corrupt file in place and backs it up to contexts.json.bak
+    /// so a later save cannot silently destroy its content.
+    #[test]
+    fn test_load_config_corrupt_file_falls_back_and_backs_up() {
+        let temp_dir = tempfile::tempdir().unwrap();
+        let config_path = temp_dir.path().join("contexts.json");
+        let garbage = "{ this is definitely not valid json";
+        fs::write(&config_path, garbage).unwrap();
+
+        let config = ContextManager::load_config(&config_path);
+
+        // Falls back to the default (local-only) configuration...
+        assert_eq!(config.context, "local");
+        assert!(config.contexts.contains_key("local"));
+
+        // ...preserving the corrupt file via the backup, original untouched.
+        let backup_path = temp_dir.path().join("contexts.json.bak");
+        assert_eq!(fs::read_to_string(&backup_path).unwrap(), garbage);
+        assert_eq!(fs::read_to_string(&config_path).unwrap(), garbage);
+
+        // A subsequent save replaces only the original, never the backup.
+        let mgr = ContextManager::with_path(config_path.clone());
+        mgr.add_context("newctx", ContextConfig::Local).unwrap();
+        let rewritten = fs::read_to_string(&config_path).unwrap();
+        serde_json::from_str::<super::manager::Config>(&rewritten).unwrap();
+        assert_eq!(fs::read_to_string(&backup_path).unwrap(), garbage);
+    }
+
+    /// A missing contexts.json yields the default configuration and writes
+    /// nothing (no file, no backup) until an explicit save.
+    #[test]
+    fn test_load_config_missing_file_defaults() {
+        let temp_dir = tempfile::tempdir().unwrap();
+        let config_path = temp_dir.path().join("contexts.json");
+
+        let config = ContextManager::load_config(&config_path);
+
+        assert_eq!(config.context, "local");
+        assert!(config.contexts.contains_key("local"));
+        assert!(!config_path.exists());
+        assert!(!temp_dir.path().join("contexts.json.bak").exists());
+    }
+
     #[test]
     fn test_context_file_ops() {
         let temp_dir = tempfile::tempdir().unwrap();
-        let ctx = Context::new(ContextConfig::Local);
+        let ctx = Context::new(ContextConfig::Local).unwrap();
 
         let file_path = temp_dir.path().join("test.txt");
         let content = "hello world";
@@ -200,7 +337,7 @@ mod tests {
     fn test_context_copy_preserves_dangling_symlink() {
         use std::os::unix::fs::symlink;
         let temp_dir = tempfile::tempdir().unwrap();
-        let ctx = Context::new(ContextConfig::Local);
+        let ctx = Context::new(ContextConfig::Local).unwrap();
 
         let src_dir = temp_dir.path().join("src");
         std::fs::create_dir_all(&src_dir).unwrap();
@@ -236,7 +373,7 @@ mod tests {
         fs::create_dir_all(src_root.join("src/.svn")).unwrap();
         fs::write(src_root.join("src/hello.c"), "int main() {}").unwrap();
 
-        let ctx = Context::new(ContextConfig::Local);
+        let ctx = Context::new(ContextConfig::Local).unwrap();
         let dest = ctx.ensure_available(&src_root, "/tmp").unwrap();
 
         assert!(dest.join("src/hello.c").exists());
diff --git a/src/context/schroot.rs b/src/context/schroot.rs
index b7316bd..e12d6ef 100644
--- a/src/context/schroot.rs
+++ b/src/context/schroot.rs
@@ -14,9 +14,10 @@ pub struct SchrootDriver {
 
 impl SchrootDriver {
     fn parent(&self) -> Arc<Context> {
-        self.parent
-            .clone()
-            .unwrap_or_else(|| Arc::new(Context::new(ContextConfig::Local)))
+        self.parent.clone().unwrap_or_else(|| {
+            // ContextConfig::Local has no parent, so this cannot fail.
+            Arc::new(Context::new(ContextConfig::Local).expect("Local context cannot fail"))
+        })
     }
 
     fn ensure_session(&self) -> io::Result<String> {
diff --git a/src/deb/mod.rs b/src/deb/mod.rs
index 2ff25ac..0dfc160 100644
--- a/src/deb/mod.rs
+++ b/src/deb/mod.rs
@@ -397,7 +397,7 @@ mod tests {
         log::info!("Successfully pulled package {}", package);
 
         // Create a fresh local context for this test
-        let ctx = Arc::new(Context::new(crate::context::ContextConfig::Local));
+        let ctx = Arc::new(Context::new(crate::context::ContextConfig::Local).unwrap());
 
         // Change directory to the package directory
         let cwd =
@@ -578,7 +578,7 @@ mod tests {
         let temp_dir = tempfile::tempdir().unwrap();
         let pkg_dir = create_indep_cross_test_source(temp_dir.path());
 
-        let ctx = Arc::new(Context::new(crate::context::ContextConfig::Local));
+        let ctx = Arc::new(Context::new(crate::context::ContextConfig::Local).unwrap());
 
         crate::deb::build_binary_package(
             Some("arm64"),