diff --git a/ralph_loop.sh b/ralph_loop.sh
index 451b124..807dec1 100755
--- a/ralph_loop.sh
+++ b/ralph_loop.sh
@@ -188,20 +188,47 @@ setup_tmux_session() {
     fi
     
     # Start ralph loop in the left pane (exclude tmux flag to avoid recursion)
+    # Forward all CLI parameters that were set by the user
     local ralph_cmd
     if command -v ralph &> /dev/null; then
         ralph_cmd="ralph"
     else
         ralph_cmd="'$ralph_home/ralph_loop.sh'"
     fi
-    
+
+    # Forward --calls if non-default
     if [[ "$MAX_CALLS_PER_HOUR" != "100" ]]; then
         ralph_cmd="$ralph_cmd --calls $MAX_CALLS_PER_HOUR"
     fi
+    # Forward --prompt if non-default
     if [[ "$PROMPT_FILE" != "$RALPH_DIR/PROMPT.md" ]]; then
         ralph_cmd="$ralph_cmd --prompt '$PROMPT_FILE'"
     fi
-    
+    # Forward --output-format if non-default (default is json)
+    if [[ "$CLAUDE_OUTPUT_FORMAT" != "json" ]]; then
+        ralph_cmd="$ralph_cmd --output-format $CLAUDE_OUTPUT_FORMAT"
+    fi
+    # Forward --verbose if enabled
+    if [[ "$VERBOSE_PROGRESS" == "true" ]]; then
+        ralph_cmd="$ralph_cmd --verbose"
+    fi
+    # Forward --timeout if non-default (default is 15)
+    if [[ "$CLAUDE_TIMEOUT_MINUTES" != "15" ]]; then
+        ralph_cmd="$ralph_cmd --timeout $CLAUDE_TIMEOUT_MINUTES"
+    fi
+    # Forward --allowed-tools if non-default
+    if [[ "$CLAUDE_ALLOWED_TOOLS" != "Write,Bash(git *),Read" ]]; then
+        ralph_cmd="$ralph_cmd --allowed-tools '$CLAUDE_ALLOWED_TOOLS'"
+    fi
+    # Forward --no-continue if session continuity disabled
+    if [[ "$CLAUDE_USE_CONTINUE" == "false" ]]; then
+        ralph_cmd="$ralph_cmd --no-continue"
+    fi
+    # Forward --session-expiry if non-default (default is 24)
+    if [[ "$CLAUDE_SESSION_EXPIRY_HOURS" != "24" ]]; then
+        ralph_cmd="$ralph_cmd --session-expiry $CLAUDE_SESSION_EXPIRY_HOURS"
+    fi
+
     tmux send-keys -t "$session_name:0.0" "$ralph_cmd" Enter
     
     # Focus on left pane (main ralph loop)
diff --git a/tests/unit/test_cli_parsing.bats b/tests/unit/test_cli_parsing.bats
index b36c900..c55c5aa 100644
--- a/tests/unit/test_cli_parsing.bats
+++ b/tests/unit/test_cli_parsing.bats
@@ -362,3 +362,105 @@ EOF
 
     assert_success
 }
+
+# =============================================================================
+# MONITOR PARAMETER FORWARDING TESTS (Issue #120)
+# Tests that --monitor correctly forwards all CLI parameters to the inner loop
+# =============================================================================
+
+# Helper function to extract the ralph_cmd that would be built in setup_tmux_session
+# This sources ralph_loop.sh and simulates the parameter forwarding logic
+build_ralph_cmd_for_test() {
+    local ralph_cmd="ralph"
+    local MAX_CALLS_PER_HOUR="${1:-100}"
+    local PROMPT_FILE="${2:-.ralph/PROMPT.md}"
+    local CLAUDE_OUTPUT_FORMAT="${3:-json}"
+    local VERBOSE_PROGRESS="${4:-false}"
+    local CLAUDE_TIMEOUT_MINUTES="${5:-15}"
+    local CLAUDE_ALLOWED_TOOLS="${6:-Write,Bash(git *),Read}"
+    local CLAUDE_USE_CONTINUE="${7:-true}"
+    local CLAUDE_SESSION_EXPIRY_HOURS="${8:-24}"
+    local RALPH_DIR=".ralph"
+
+    # Forward --calls if non-default
+    if [[ "$MAX_CALLS_PER_HOUR" != "100" ]]; then
+        ralph_cmd="$ralph_cmd --calls $MAX_CALLS_PER_HOUR"
+    fi
+    # Forward --prompt if non-default
+    if [[ "$PROMPT_FILE" != "$RALPH_DIR/PROMPT.md" ]]; then
+        ralph_cmd="$ralph_cmd --prompt '$PROMPT_FILE'"
+    fi
+    # Forward --output-format if non-default (default is json)
+    if [[ "$CLAUDE_OUTPUT_FORMAT" != "json" ]]; then
+        ralph_cmd="$ralph_cmd --output-format $CLAUDE_OUTPUT_FORMAT"
+    fi
+    # Forward --verbose if enabled
+    if [[ "$VERBOSE_PROGRESS" == "true" ]]; then
+        ralph_cmd="$ralph_cmd --verbose"
+    fi
+    # Forward --timeout if non-default (default is 15)
+    if [[ "$CLAUDE_TIMEOUT_MINUTES" != "15" ]]; then
+        ralph_cmd="$ralph_cmd --timeout $CLAUDE_TIMEOUT_MINUTES"
+    fi
+    # Forward --allowed-tools if non-default
+    if [[ "$CLAUDE_ALLOWED_TOOLS" != "Write,Bash(git *),Read" ]]; then
+        ralph_cmd="$ralph_cmd --allowed-tools '$CLAUDE_ALLOWED_TOOLS'"
+    fi
+    # Forward --no-continue if session continuity disabled
+    if [[ "$CLAUDE_USE_CONTINUE" == "false" ]]; then
+        ralph_cmd="$ralph_cmd --no-continue"
+    fi
+    # Forward --session-expiry if non-default (default is 24)
+    if [[ "$CLAUDE_SESSION_EXPIRY_HOURS" != "24" ]]; then
+        ralph_cmd="$ralph_cmd --session-expiry $CLAUDE_SESSION_EXPIRY_HOURS"
+    fi
+
+    echo "$ralph_cmd"
+}
+
+@test "monitor forwards --output-format text parameter" {
+    local result=$(build_ralph_cmd_for_test 100 ".ralph/PROMPT.md" "text")
+    [[ "$result" == *"--output-format text"* ]]
+}
+
+@test "monitor forwards --verbose parameter" {
+    local result=$(build_ralph_cmd_for_test 100 ".ralph/PROMPT.md" "json" "true")
+    [[ "$result" == *"--verbose"* ]]
+}
+
+@test "monitor forwards --timeout parameter" {
+    local result=$(build_ralph_cmd_for_test 100 ".ralph/PROMPT.md" "json" "false" "30")
+    [[ "$result" == *"--timeout 30"* ]]
+}
+
+@test "monitor forwards --allowed-tools parameter" {
+    local result=$(build_ralph_cmd_for_test 100 ".ralph/PROMPT.md" "json" "false" "15" "Read,Write")
+    [[ "$result" == *"--allowed-tools 'Read,Write'"* ]]
+}
+
+@test "monitor forwards --no-continue parameter" {
+    local result=$(build_ralph_cmd_for_test 100 ".ralph/PROMPT.md" "json" "false" "15" "Write,Bash(git *),Read" "false")
+    [[ "$result" == *"--no-continue"* ]]
+}
+
+@test "monitor forwards --session-expiry parameter" {
+    local result=$(build_ralph_cmd_for_test 100 ".ralph/PROMPT.md" "json" "false" "15" "Write,Bash(git *),Read" "true" "48")
+    [[ "$result" == *"--session-expiry 48"* ]]
+}
+
+@test "monitor forwards multiple parameters together" {
+    local result=$(build_ralph_cmd_for_test 50 ".ralph/PROMPT.md" "text" "true" "30" "Read,Write" "false" "12")
+    [[ "$result" == *"--calls 50"* ]]
+    [[ "$result" == *"--output-format text"* ]]
+    [[ "$result" == *"--verbose"* ]]
+    [[ "$result" == *"--timeout 30"* ]]
+    [[ "$result" == *"--allowed-tools 'Read,Write'"* ]]
+    [[ "$result" == *"--no-continue"* ]]
+    [[ "$result" == *"--session-expiry 12"* ]]
+}
+
+@test "monitor does not forward default parameters" {
+    local result=$(build_ralph_cmd_for_test 100 ".ralph/PROMPT.md" "json" "false" "15" "Write,Bash(git *),Read" "true" "24")
+    # Should only be "ralph" with no extra flags
+    [[ "$result" == "ralph" ]]
+}