diff --git a/HIERARCHY_VISUALIZATION_PLAN.md b/HIERARCHY_VISUALIZATION_PLAN.md
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+# Hierarchy Visualization Integration Plan
+
+## Current State: NKBIP-01 Tree Processor Complete ✅
+
+We have successfully implemented a proper Asciidoctor tree processor extension that:
+- Registers as a real Asciidoctor extension using `registry.treeProcessor()`
+- Processes documents during AST parsing with full access to `doc.getSections()`
+- Implements hierarchical NKBIP-01 structure with 30040/30041 events
+- Supports parse levels 2-5 with different event granularities
+- Passes comprehensive tests validating the hierarchical structure
+
+## Next Phase: ZettelEditor Integration
+
+### Overview
+Integrate the new hierarchical parser into ZettelEditor with visual hierarchy hints that show users exactly which sections will become which types of events at different parse levels - like text editor indent guides but for Nostr event structure.
+
+### Phase 1: Core Integration (Essential)
+
+#### 1.1 Update ZettelEditor Parser
+- **Current**: Uses old `publication_tree_factory.ts` with flattened AST parsing
+- **Target**: Switch to new `asciidoc_publication_parser.ts` with tree processor
+- **Impact**: Enables real hierarchical 30040/30041 event structure
+
+```typescript
+// Change from:
+import { createPublicationTreeFromContent } from "$lib/utils/publication_tree_factory";
+
+// To:
+import { parseAsciiDocWithTree } from "$lib/utils/asciidoc_publication_parser";
+```
+
+#### 1.2 Fix Parse Level Configuration
+- Update `MAX_PARSE_LEVEL` from 6 to 5 in ZettelEditor.svelte:43
+- Update parse level options to reflect new hierarchical structure descriptions
+
+#### 1.3 Update Preview Panel
+- Leverage `publicationResult.metadata.eventStructure` for accurate hierarchy display
+- Show 30040 vs 30041 event types with different visual indicators
+- Display parent-child relationships between index and content events
+
+### Phase 2: Visual Hierarchy Indicators (High Impact)
+
+#### 2.1 Editor Gutter Visualization
+Add visual hints in the editor showing which sections will become events:
+
+**Event Type Indicators:**
+- 🔵 **Blue circle**: Sections that become 30040 index events
+- 🟢 **Green circle**: Sections that become 30041 content events  
+- 📝 **Text label**: "Index" or "Content" next to each section
+
+**Parse Level Boundaries:**
+- **Colored left border**: Different colors for each hierarchy level
+- **Indent guides**: Visual lines showing nested structure
+- **Level badges**: Small "L2", "L3", etc. indicators
+
+#### 2.2 Real-time Parse Level Feedback
+As user changes parse level dropdown:
+- **Highlight changes**: Animate sections that change event type
+- **Event count updates**: Show before/after event counts
+- **Structure preview**: Mini-tree view showing resulting hierarchy
+
+#### 2.3 Interactive Section Mapping
+- **Hover effects**: Hover over section → highlight corresponding event in preview
+- **Click navigation**: Click section title → jump to event preview
+- **Relationship lines**: Visual connections between 30040 and their 30041 children
+
+### Phase 3: Advanced Hierarchy Features (Polish)
+
+#### 3.1 Smart Parse Level Suggestions
+- **Auto-detect optimal level**: Analyze document structure and suggest best parse level
+- **Level comparison**: Side-by-side view of different parse levels
+- **Performance hints**: Show trade-offs (fewer vs more events)
+
+#### 3.2 Enhanced Editor Features
+- **Section folding**: Collapse/expand based on hierarchy
+- **Quick level promotion**: Buttons to promote/demote section levels
+- **Hierarchy outline**: Collapsible tree view in sidebar
+
+#### 3.3 Event Relationship Visualization
+- **Tree diagram**: Visual representation of 30040 → 30041 relationships
+- **Event flow**: Show how events will be published and linked
+- **Validation**: Check for proper NKBIP-01 compliance
+
+### Phase 4: Advanced Interactions (Future)
+
+#### 4.1 Drag & Drop Hierarchy Editing
+- Drag sections to change hierarchy
+- Visual feedback for valid drop targets
+- Auto-update AsciiDoc markup
+
+#### 4.2 Multi-level Preview
+- Split preview showing multiple parse levels simultaneously
+- Compare different parsing strategies
+- Export options for different levels
+
+## Technical Implementation Notes
+
+### Key Data Structures
+```typescript
+// eventStructure provides complete hierarchy information
+interface EventStructureNode {
+  title: string;
+  level: number;
+  eventType: "index" | "content";
+  eventKind: 30040 | 30041;
+  dTag: string;
+  children: EventStructureNode[];
+}
+```
+
+### Integration Points
+1. **Parser integration**: `parseAsciiDocWithTree()` in reactive effect
+2. **Event structure**: Use `result.metadata.eventStructure` for visualization
+3. **Real-time updates**: Svelte reactivity for immediate visual feedback
+4. **Preview sync**: Coordinate editor and preview panel highlights
+
+### CSS Hierarchy Indicators
+```css
+.section-level-2 { border-left: 4px solid #3b82f6; }  /* Blue */
+.section-level-3 { border-left: 4px solid #10b981; }  /* Green */
+.section-level-4 { border-left: 4px solid #f59e0b; }  /* Amber */
+.section-level-5 { border-left: 4px solid #8b5cf6; }  /* Purple */
+
+.event-type-index { background: rgba(59, 130, 246, 0.1); }   /* Light blue */
+.event-type-content { background: rgba(16, 185, 129, 0.1); } /* Light green */
+```
+
+## Success Metrics
+
+### Phase 1 (Essential)
+- [ ] ZettelEditor uses new tree processor
+- [ ] All existing functionality preserved
+- [ ] Hierarchical events display correctly
+
+### Phase 2 (High Impact)  
+- [ ] Visual hierarchy indicators in editor
+- [ ] Real-time parse level feedback
+- [ ] Clear 30040 vs 30041 distinction
+
+### Phase 3 (Polish)
+- [ ] Smart parse level suggestions
+- [ ] Enhanced editor interactions
+- [ ] Event relationship visualization
+
+## Migration Strategy
+
+1. **Gradual rollout**: Implement phases sequentially
+2. **Fallback compatibility**: Keep old factory as backup during transition
+3. **User testing**: Validate hierarchy visualization with real users
+4. **Performance monitoring**: Ensure real-time updates remain smooth
+
+## Dependencies
+
+- ✅ **NKBIP-01 tree processor**: Complete and tested
+- ✅ **Parse level validation**: Levels 2-5 supported
+- ✅ **Event structure metadata**: Available in `eventStructure` field
+- ⏳ **ZettelEditor integration**: Next phase
+- ⏳ **Visual design system**: Colors, icons, animations
+
+---
+
+**Ready to proceed with Phase 1: Core Integration**
+The foundation is solid - we have a working tree processor extension that generates proper hierarchical NKBIP-01 events. Now we need to integrate it into the editor interface and add the visual hierarchy indicators that will make the event structure clear to users.
\ No newline at end of file
diff --git a/src/lib/utils/asciidoc_publication_parser.ts b/src/lib/utils/asciidoc_publication_parser.ts
new file mode 100644
index 0000000..00586ab
--- /dev/null
+++ b/src/lib/utils/asciidoc_publication_parser.ts
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+/**
+ * Unified AsciiDoc Publication Parser
+ * 
+ * Single entry point for parsing AsciiDoc content into NKBIP-01 compliant
+ * publication trees using proper Asciidoctor tree processor extensions.
+ * 
+ * This implements Michael's vision of using PublicationTree as the primary
+ * data structure for organizing hierarchical Nostr events.
+ */
+
+import Asciidoctor from "asciidoctor";
+import { registerPublicationTreeProcessor, type ProcessorResult } from "./publication_tree_processor";
+import type NDK from "@nostr-dev-kit/ndk";
+
+export type PublicationTreeResult = ProcessorResult;
+
+/**
+ * Parse AsciiDoc content into a PublicationTree using tree processor extension
+ * This is the main entry point for all parsing operations
+ */
+export async function parseAsciiDocWithTree(
+  content: string,
+  ndk: NDK,
+  parseLevel: number = 2
+): Promise<PublicationTreeResult> {
+  console.log(`[Parser] Starting parse at level ${parseLevel}`);
+  
+  // Create fresh Asciidoctor instance
+  const asciidoctor = Asciidoctor();
+  const registry = asciidoctor.Extensions.create();
+  
+  // Register our tree processor extension
+  const processorAccessor = registerPublicationTreeProcessor(
+    registry, 
+    ndk, 
+    parseLevel, 
+    content
+  );
+  
+  try {
+    // Parse the document with our extension
+    const doc = asciidoctor.load(content, {
+      extension_registry: registry,
+      standalone: false,
+      attributes: {
+        sectids: false
+      }
+    });
+    
+    console.log(`[Parser] Document converted successfully`);
+    
+    // Get the result from our processor
+    const result = processorAccessor.getResult();
+    
+    if (!result) {
+      throw new Error("Tree processor failed to generate result");
+    }
+    
+    // Build async relationships in the PublicationTree
+    await buildTreeRelationships(result);
+    
+    console.log(`[Parser] Tree relationships built successfully`);
+    
+    return result;
+    
+  } catch (error) {
+    console.error('[Parser] Error during parsing:', error);
+    throw new Error(`Failed to parse AsciiDoc content: ${error instanceof Error ? error.message : 'Unknown error'}`);
+  }
+}
+
+/**
+ * Build async relationships in the PublicationTree
+ * This adds content events to the tree structure as Michael envisioned
+ */
+async function buildTreeRelationships(result: ProcessorResult): Promise<void> {
+  const { tree, indexEvent, contentEvents } = result;
+  
+  if (!tree) {
+    throw new Error("No tree available to build relationships");
+  }
+  
+  try {
+    // Add content events to the tree
+    if (indexEvent && contentEvents.length > 0) {
+      // Article structure: add all content events to index
+      for (const contentEvent of contentEvents) {
+        await tree.addEvent(contentEvent, indexEvent);
+      }
+    } else if (contentEvents.length > 1) {
+      // Scattered notes: add remaining events to first event
+      const rootEvent = contentEvents[0];
+      for (let i = 1; i < contentEvents.length; i++) {
+        await tree.addEvent(contentEvents[i], rootEvent);
+      }
+    }
+    
+    console.log(`[Parser] Added ${contentEvents.length} events to tree`);
+    
+  } catch (error) {
+    console.error('[Parser] Error building tree relationships:', error);
+    throw error;
+  }
+}
+
+/**
+ * Export events from PublicationTree for publishing workflow compatibility
+ */
+export function exportEventsFromTree(result: PublicationTreeResult) {
+  return {
+    indexEvent: result.indexEvent ? eventToPublishableObject(result.indexEvent) : undefined,
+    contentEvents: result.contentEvents.map(eventToPublishableObject),
+    tree: result.tree
+  };
+}
+
+/**
+ * Convert NDKEvent to publishable object format
+ */
+function eventToPublishableObject(event: any) {
+  return {
+    kind: event.kind,
+    content: event.content,
+    tags: event.tags,
+    created_at: event.created_at,
+    pubkey: event.pubkey,
+    id: event.id,
+    title: event.tags.find((t: string[]) => t[0] === "title")?.[1] || "Untitled"
+  };
+}
+
+/**
+ * Validate parse level parameter
+ */
+export function validateParseLevel(level: number): boolean {
+  return Number.isInteger(level) && level >= 2 && level <= 5;
+}
+
+/**
+ * Get supported parse levels
+ */
+export function getSupportedParseLevels(): number[] {
+  return [2, 3, 4, 5];
+}
\ No newline at end of file
diff --git a/src/lib/utils/publication_tree_processor.ts b/src/lib/utils/publication_tree_processor.ts
new file mode 100644
index 0000000..51c4fc4
--- /dev/null
+++ b/src/lib/utils/publication_tree_processor.ts
@@ -0,0 +1,829 @@
+/**
+ * NKBIP-01 Compliant Publication Tree Processor
+ * 
+ * Implements proper Asciidoctor tree processor extension pattern for building
+ * PublicationTree structures during document parsing. Supports iterative parsing
+ * at different hierarchy levels (2-7) as defined in NKBIP-01 specification.
+ */
+
+import type { Document, Registry } from "asciidoctor";
+import { PublicationTree } from "$lib/data_structures/publication_tree";
+import { NDKEvent } from "@nostr-dev-kit/ndk";
+import type NDK from "@nostr-dev-kit/ndk";
+import { getMimeTags } from "$lib/utils/mime";
+
+export interface ProcessorResult {
+  tree: PublicationTree;
+  indexEvent: NDKEvent | null;
+  contentEvents: NDKEvent[];
+  metadata: {
+    title: string;
+    totalSections: number;
+    contentType: "article" | "scattered-notes" | "none";
+    attributes: Record<string, string>;
+    parseLevel: number;
+    eventStructure: EventStructureNode[];
+  };
+}
+
+export interface EventStructureNode {
+  title: string;
+  level: number;
+  eventType: "index" | "content";
+  eventKind: 30040 | 30041;
+  dTag: string;
+  children: EventStructureNode[];
+}
+
+interface ContentSegment {
+  title: string;
+  content: string;
+  level: number;
+  attributes: Record<string, string>;
+  startLine: number;
+  endLine: number;
+}
+
+interface HierarchicalSegment extends ContentSegment {
+  hasChildren: boolean;
+  children: ContentSegment[];
+}
+
+/**
+ * Register the PublicationTree processor extension with Asciidoctor
+ * This follows the official extension pattern exactly as provided by the user
+ */
+export function registerPublicationTreeProcessor(
+  registry: Registry,
+  ndk: NDK,
+  parseLevel: number = 2,
+  originalContent: string
+): { getResult: () => ProcessorResult | null } {
+  let processorResult: ProcessorResult | null = null;
+  
+  registry.treeProcessor(function() {
+    const self = this;
+    
+    self.process(function(doc: Document) {
+      try {
+        // Extract document metadata from AST
+        const title = doc.getTitle() || '';
+        const attributes = doc.getAttributes();
+        const sections = doc.getSections();
+        
+        console.log(`[TreeProcessor] Document attributes:`, {
+          tags: attributes.tags,
+          author: attributes.author, 
+          type: attributes.type
+        });
+        
+        console.log(`[TreeProcessor] Processing document: "${title}" at parse level ${parseLevel}`);
+        console.log(`[TreeProcessor] Found ${sections.length} top-level sections`);
+        
+        // Extract content segments from original text based on parse level
+        const contentSegments = extractContentSegments(originalContent, sections, parseLevel);
+        console.log(`[TreeProcessor] Extracted ${contentSegments.length} content segments for level ${parseLevel}`);
+        
+        // Determine content type based on structure
+        const contentType = detectContentType(title, contentSegments);
+        console.log(`[TreeProcessor] Detected content type: ${contentType}`);
+        
+        // Build events and tree structure
+        const { tree, indexEvent, contentEvents, eventStructure } = buildEventsFromSegments(
+          contentSegments, 
+          title, 
+          attributes, 
+          contentType, 
+          parseLevel, 
+          ndk
+        );
+        
+        processorResult = {
+          tree,
+          indexEvent,
+          contentEvents,
+          metadata: {
+            title,
+            totalSections: contentSegments.length,
+            contentType,
+            attributes,
+            parseLevel,
+            eventStructure
+          }
+        };
+        
+        console.log(`[TreeProcessor] Built tree with ${contentEvents.length} content events and ${indexEvent ? '1' : '0'} index events`);
+        
+      } catch (error) {
+        console.error('[TreeProcessor] Error processing document:', error);
+        processorResult = null;
+      }
+      
+      return doc;
+    });
+  });
+  
+  return {
+    getResult: () => processorResult
+  };
+}
+
+/**
+ * Extract content segments from original text based on parse level
+ * This is the core iterative function that handles different hierarchy depths
+ */
+function extractContentSegments(
+  originalContent: string,
+  sections: any[],
+  parseLevel: number
+): ContentSegment[] {
+  const lines = originalContent.split('\n');
+  
+  // Build hierarchy map from AST
+  const sectionHierarchy = buildSectionHierarchy(sections);
+  
+  // Debug: Show hierarchy depths
+  console.log(`[TreeProcessor] Section hierarchy depth analysis:`);
+  function showDepth(nodes: SectionNode[], depth = 0) {
+    for (const node of nodes) {
+      console.log(`${'  '.repeat(depth)}Level ${node.level}: ${node.title}`);
+      if (node.children.length > 0) {
+        showDepth(node.children, depth + 1);
+      }
+    }
+  }
+  showDepth(sectionHierarchy);
+  
+  // Extract segments at the target parse level
+  return extractSegmentsAtLevel(lines, sectionHierarchy, parseLevel);
+}
+
+/**
+ * Build hierarchical section structure from Asciidoctor AST
+ */
+function buildSectionHierarchy(sections: any[]): SectionNode[] {
+  function buildNode(section: any): SectionNode {
+    return {
+      title: section.getTitle(),
+      level: section.getLevel() + 1, // Convert to app level (Asciidoctor uses 0-based)
+      attributes: section.getAttributes() || {},
+      children: (section.getSections() || []).map(buildNode)
+    };
+  }
+  
+  return sections.map(buildNode);
+}
+
+interface SectionNode {
+  title: string;
+  level: number;
+  attributes: Record<string, string>;
+  children: SectionNode[];
+}
+
+/**
+ * Extract content segments at the specified parse level
+ * This implements the iterative parsing logic for different levels
+ */
+function extractSegmentsAtLevel(
+  lines: string[],
+  hierarchy: SectionNode[],
+  parseLevel: number
+): ContentSegment[] {
+  const segments: ContentSegment[] = [];
+  
+  // Collect all sections at the target parse level
+  const targetSections = collectSectionsAtLevel(hierarchy, parseLevel);
+  
+  for (const section of targetSections) {
+    const segment = extractSegmentContent(lines, section, parseLevel);
+    if (segment) {
+      segments.push(segment);
+    }
+  }
+  
+  return segments;
+}
+
+/**
+ * Recursively collect sections at or above the specified level
+ * NKBIP-01: Level N parsing includes sections from level 2 through level N
+ */
+function collectSectionsAtLevel(hierarchy: SectionNode[], targetLevel: number): SectionNode[] {
+  const collected: SectionNode[] = [];
+  
+  function traverse(nodes: SectionNode[]) {
+    for (const node of nodes) {
+      // Include sections from level 2 up to target level
+      if (node.level >= 2 && node.level <= targetLevel) {
+        collected.push(node);
+      }
+      
+      // Continue traversing children to find more sections
+      if (node.children.length > 0) {
+        traverse(node.children);
+      }
+    }
+  }
+  
+  traverse(hierarchy);
+  return collected;
+}
+
+/**
+ * Extract content for a specific section from the original text
+ */
+function extractSegmentContent(
+  lines: string[],
+  section: SectionNode,
+  parseLevel: number
+): ContentSegment | null {
+  // Find the section header in the original content
+  const sectionPattern = new RegExp(`^${'='.repeat(section.level)}\\s+${escapeRegex(section.title)}`);
+  let startIdx = -1;
+  
+  for (let i = 0; i < lines.length; i++) {
+    if (sectionPattern.test(lines[i])) {
+      startIdx = i;
+      break;
+    }
+  }
+  
+  if (startIdx === -1) {
+    console.warn(`[TreeProcessor] Could not find section "${section.title}" at level ${section.level}`);
+    return null;
+  }
+  
+  // Find the end of this section
+  let endIdx = lines.length;
+  for (let i = startIdx + 1; i < lines.length; i++) {
+    const levelMatch = lines[i].match(/^(=+)\s+/);
+    if (levelMatch && levelMatch[1].length <= section.level) {
+      endIdx = i;
+      break;
+    }
+  }
+  
+  // Extract section content
+  const sectionLines = lines.slice(startIdx, endIdx);
+  
+  // Parse attributes and content
+  const { attributes, content } = parseSegmentContent(sectionLines, parseLevel);
+  
+  return {
+    title: section.title,
+    content,
+    level: section.level,
+    attributes,
+    startLine: startIdx,
+    endLine: endIdx
+  };
+}
+
+/**
+ * Parse attributes and content from section lines
+ */
+function parseSegmentContent(sectionLines: string[], parseLevel: number): {
+  attributes: Record<string, string>;
+  content: string;
+} {
+  const attributes: Record<string, string> = {};
+  let contentStartIdx = 1; // Skip the title line
+  
+  // Look for attribute lines after the title
+  for (let i = 1; i < sectionLines.length; i++) {
+    const line = sectionLines[i].trim();
+    if (line.startsWith(':') && line.includes(':')) {
+      const match = line.match(/^:([^:]+):\\s*(.*)$/);
+      if (match) {
+        attributes[match[1]] = match[2];
+        contentStartIdx = i + 1;
+      }
+    } else if (line !== '') {
+      // Non-empty, non-attribute line - content starts here
+      break;
+    }
+  }
+  
+  // Extract content (everything after attributes)
+  const content = sectionLines.slice(contentStartIdx).join('\n').trim();
+  
+  return { attributes, content };
+}
+
+/**
+ * Detect content type based on document structure
+ */
+function detectContentType(
+  title: string,
+  segments: ContentSegment[]
+): "article" | "scattered-notes" | "none" {
+  const hasDocTitle = !!title;
+  const hasSections = segments.length > 0;
+  
+  // Check if the title matches the first section title
+  const titleMatchesFirstSection = segments.length > 0 && title === segments[0].title;
+  
+  if (hasDocTitle && hasSections && !titleMatchesFirstSection) {
+    return "article";
+  } else if (hasSections) {
+    return "scattered-notes";
+  }
+  
+  return "none";
+}
+
+/**
+ * Build events and tree structure from content segments
+ * Implements NKBIP-01 hierarchical parsing:
+ * - Level 2: One 30041 event per level 2 section containing all nested content
+ * - Level 3+: Hierarchical 30040 events for intermediate sections + 30041 for content-only
+ */
+function buildEventsFromSegments(
+  segments: ContentSegment[],
+  title: string,
+  attributes: Record<string, string>,
+  contentType: "article" | "scattered-notes" | "none",
+  parseLevel: number,
+  ndk: NDK
+): {
+  tree: PublicationTree;
+  indexEvent: NDKEvent | null;
+  contentEvents: NDKEvent[];
+  eventStructure: EventStructureNode[];
+} {
+  if (contentType === "scattered-notes" && segments.length > 0) {
+    return buildScatteredNotesStructure(segments, ndk);
+  }
+  
+  if (contentType === "article" && title) {
+    return buildArticleStructure(segments, title, attributes, parseLevel, ndk);
+  }
+  
+  throw new Error("No valid content found to create publication tree");
+}
+
+/**
+ * Build structure for scattered notes (flat 30041 events)
+ */
+function buildScatteredNotesStructure(
+  segments: ContentSegment[],
+  ndk: NDK
+): {
+  tree: PublicationTree;
+  indexEvent: NDKEvent | null;
+  contentEvents: NDKEvent[];
+  eventStructure: EventStructureNode[];
+} {
+  const contentEvents: NDKEvent[] = [];
+  const eventStructure: EventStructureNode[] = [];
+  
+  const firstSegment = segments[0];
+  const rootEvent = createContentEvent(firstSegment, ndk);
+  const tree = new PublicationTree(rootEvent, ndk);
+  contentEvents.push(rootEvent);
+  
+  eventStructure.push({
+    title: firstSegment.title,
+    level: firstSegment.level,
+    eventType: "content",
+    eventKind: 30041,
+    dTag: generateDTag(firstSegment.title),
+    children: []
+  });
+  
+  // Add remaining segments
+  for (let i = 1; i < segments.length; i++) {
+    const contentEvent = createContentEvent(segments[i], ndk);
+    contentEvents.push(contentEvent);
+    
+    eventStructure.push({
+      title: segments[i].title,
+      level: segments[i].level,
+      eventType: "content",
+      eventKind: 30041,
+      dTag: generateDTag(segments[i].title),
+      children: []
+    });
+  }
+  
+  return { tree, indexEvent: null, contentEvents, eventStructure };
+}
+
+/**
+ * Build structure for articles based on parse level
+ */
+function buildArticleStructure(
+  segments: ContentSegment[],
+  title: string,
+  attributes: Record<string, string>,
+  parseLevel: number,
+  ndk: NDK
+): {
+  tree: PublicationTree;
+  indexEvent: NDKEvent | null;
+  contentEvents: NDKEvent[];
+  eventStructure: EventStructureNode[];
+} {
+  const indexEvent = createIndexEvent(title, attributes, segments, ndk);
+  const tree = new PublicationTree(indexEvent, ndk);
+  
+  if (parseLevel === 2) {
+    return buildLevel2Structure(segments, title, indexEvent, tree, ndk);
+  } else {
+    return buildHierarchicalStructure(segments, title, indexEvent, tree, parseLevel, ndk);
+  }
+}
+
+/**
+ * Build Level 2 structure: One 30041 event per level 2 section with all nested content
+ */
+function buildLevel2Structure(
+  segments: ContentSegment[],
+  title: string,
+  indexEvent: NDKEvent,
+  tree: PublicationTree,
+  ndk: NDK
+): {
+  tree: PublicationTree;
+  indexEvent: NDKEvent | null;
+  contentEvents: NDKEvent[];
+  eventStructure: EventStructureNode[];
+} {
+  const contentEvents: NDKEvent[] = [];
+  const eventStructure: EventStructureNode[] = [];
+  
+  // Add index to structure
+  eventStructure.push({
+    title,
+    level: 1,
+    eventType: "index",
+    eventKind: 30040,
+    dTag: generateDTag(title),
+    children: []
+  });
+  
+  // Group segments by level 2 sections
+  const level2Groups = groupSegmentsByLevel2(segments);
+  
+  for (const group of level2Groups) {
+    const contentEvent = createContentEvent(group, ndk);
+    contentEvents.push(contentEvent);
+    
+    eventStructure[0].children.push({
+      title: group.title,
+      level: group.level,
+      eventType: "content", 
+      eventKind: 30041,
+      dTag: generateDTag(group.title),
+      children: []
+    });
+  }
+  
+  return { tree, indexEvent, contentEvents, eventStructure };
+}
+
+/**
+ * Build hierarchical structure for Level 3+: Mix of 30040 and 30041 events
+ */
+function buildHierarchicalStructure(
+  segments: ContentSegment[],
+  title: string,
+  indexEvent: NDKEvent,
+  tree: PublicationTree,
+  parseLevel: number,
+  ndk: NDK
+): {
+  tree: PublicationTree;
+  indexEvent: NDKEvent | null;
+  contentEvents: NDKEvent[];
+  eventStructure: EventStructureNode[];
+} {
+  const contentEvents: NDKEvent[] = [];
+  const eventStructure: EventStructureNode[] = [];
+  
+  // Add root index to structure
+  eventStructure.push({
+    title,
+    level: 1,
+    eventType: "index",
+    eventKind: 30040,
+    dTag: generateDTag(title),
+    children: []
+  });
+  
+  // Build hierarchical structure
+  const hierarchy = buildSegmentHierarchy(segments);
+  
+  for (const level2Section of hierarchy) {
+    if (level2Section.hasChildren) {
+      // Create 30040 for level 2 section with children
+      const level2Index = createIndexEventForSection(level2Section, ndk);
+      contentEvents.push(level2Index);
+      
+      const level2Node: EventStructureNode = {
+        title: level2Section.title,
+        level: level2Section.level,
+        eventType: "index",
+        eventKind: 30040,
+        dTag: generateDTag(level2Section.title),
+        children: []
+      };
+      
+      // Add children as 30041 content events
+      for (const child of level2Section.children) {
+        const childEvent = createContentEvent(child, ndk);
+        contentEvents.push(childEvent);
+        
+        level2Node.children.push({
+          title: child.title,
+          level: child.level,
+          eventType: "content",
+          eventKind: 30041,
+          dTag: generateDTag(child.title),
+          children: []
+        });
+      }
+      
+      eventStructure[0].children.push(level2Node);
+    } else {
+      // Create 30041 for level 2 section without children
+      const contentEvent = createContentEvent(level2Section, ndk);
+      contentEvents.push(contentEvent);
+      
+      eventStructure[0].children.push({
+        title: level2Section.title,
+        level: level2Section.level,
+        eventType: "content",
+        eventKind: 30041,
+        dTag: generateDTag(level2Section.title),
+        children: []
+      });
+    }
+  }
+  
+  return { tree, indexEvent, contentEvents, eventStructure };
+}
+
+/**
+ * Create a 30040 index event from document metadata
+ */
+function createIndexEvent(
+  title: string,
+  attributes: Record<string, string>,
+  segments: ContentSegment[],
+  ndk: NDK
+): NDKEvent {
+  const event = new NDKEvent(ndk);
+  event.kind = 30040;
+  event.created_at = Math.floor(Date.now() / 1000);
+  event.pubkey = ndk.activeUser?.pubkey || "preview-placeholder-pubkey";
+  
+  const dTag = generateDTag(title);
+  const [mTag, MTag] = getMimeTags(30040);
+  
+  const tags: string[][] = [
+    ["d", dTag],
+    mTag,
+    MTag,
+    ["title", title]
+  ];
+  
+  // Add document attributes as tags
+  addDocumentAttributesToTags(tags, attributes, event.pubkey);
+  
+  // Add a-tags for each content section
+  segments.forEach(segment => {
+    const sectionDTag = generateDTag(segment.title);
+    tags.push(["a", `30041:${event.pubkey}:${sectionDTag}`]);
+  });
+  
+  event.tags = tags;
+  console.log(`[TreeProcessor] Index event tags:`, tags.slice(0, 10));
+  event.content = generateIndexContent(title, segments);
+  
+  return event;
+}
+
+/**
+ * Create a 30041 content event from segment
+ */
+function createContentEvent(segment: ContentSegment, ndk: NDK): NDKEvent {
+  const event = new NDKEvent(ndk);
+  event.kind = 30041;
+  event.created_at = Math.floor(Date.now() / 1000);
+  event.pubkey = ndk.activeUser?.pubkey || "preview-placeholder-pubkey";
+  
+  const dTag = generateDTag(segment.title);
+  const [mTag, MTag] = getMimeTags(30041);
+  
+  const tags: string[][] = [
+    ["d", dTag],
+    mTag,
+    MTag,
+    ["title", segment.title]
+  ];
+  
+  // Add segment attributes as tags
+  addSectionAttributesToTags(tags, segment.attributes);
+  
+  event.tags = tags;
+  event.content = segment.content;
+  
+  return event;
+}
+
+/**
+ * Generate default index content
+ */
+function generateIndexContent(title: string, segments: ContentSegment[]): string {
+  return `# ${title}
+
+${segments.length} sections available:
+
+${segments.map((segment, i) => `${i + 1}. ${segment.title}`).join('\n')}`;
+}
+
+/**
+ * Escape regex special characters
+ */
+function escapeRegex(str: string): string {
+  return str.replace(/[.*+?^${}()|[\]\\]/g, '\\$&');
+}
+
+/**
+ * Generate deterministic d-tag from title
+ */
+function generateDTag(title: string): string {
+  return title
+    .toLowerCase()
+    .replace(/[^\p{L}\p{N}]/gu, "-")
+    .replace(/-+/g, "-")
+    .replace(/^-|-$/g, "") || "untitled";
+}
+
+/**
+ * Add document attributes as Nostr tags
+ */
+function addDocumentAttributesToTags(
+  tags: string[][],
+  attributes: Record<string, string>,
+  pubkey: string
+) {
+  // Standard metadata
+  if (attributes.author) tags.push(["author", attributes.author]);
+  if (attributes.version) tags.push(["version", attributes.version]);
+  if (attributes.published) tags.push(["published", attributes.published]);
+  if (attributes.language) tags.push(["language", attributes.language]);
+  if (attributes.image) tags.push(["image", attributes.image]);
+  if (attributes.description) tags.push(["summary", attributes.description]);
+  if (attributes.type) tags.push(["type", attributes.type]);
+  
+  // Tags
+  if (attributes.tags) {
+    attributes.tags.split(",").forEach(tag => tags.push(["t", tag.trim()]));
+  }
+  
+  // Add pubkey reference
+  tags.push(["p", pubkey]);
+  
+  // Custom attributes
+  addCustomAttributes(tags, attributes);
+}
+
+/**
+ * Add section attributes as tags
+ */
+function addSectionAttributesToTags(
+  tags: string[][],
+  attributes: Record<string, string>
+) {
+  // Section tags
+  if (attributes.tags) {
+    attributes.tags.split(",").forEach(tag => tags.push(["t", tag.trim()]));
+  }
+  
+  // Custom attributes
+  addCustomAttributes(tags, attributes);
+}
+
+/**
+ * Add custom attributes, filtering out system ones
+ */
+function addCustomAttributes(
+  tags: string[][],
+  attributes: Record<string, string>
+) {
+  const systemAttributes = [
+    "attribute-undefined", "attribute-missing", "appendix-caption",
+    "appendix-refsig", "caution-caption", "chapter-refsig", "example-caption",
+    "figure-caption", "important-caption", "last-update-label", "manname-title",
+    "note-caption", "part-refsig", "preface-title", "section-refsig",
+    "table-caption", "tip-caption", "toc-title", "untitled-label",
+    "version-label", "warning-caption", "asciidoctor", "asciidoctor-version",
+    "safe-mode-name", "backend", "doctype", "basebackend", "filetype",
+    "outfilesuffix", "stylesdir", "iconsdir", "localdate", "localyear",
+    "localtime", "localdatetime", "docdate", "docyear", "doctime",
+    "docdatetime", "doctitle", "embedded", "notitle",
+    // Already handled above
+    "author", "version", "published", "language", "image", "description",
+    "tags", "title", "type"
+  ];
+  
+  Object.entries(attributes).forEach(([key, value]) => {
+    if (!systemAttributes.includes(key) && value && typeof value === "string") {
+      tags.push([key, value]);
+    }
+  });
+}
+
+/**
+ * Group segments by level 2 sections for Level 2 parsing
+ * Combines all nested content into each level 2 section
+ */
+function groupSegmentsByLevel2(segments: ContentSegment[]): ContentSegment[] {
+  const level2Groups: ContentSegment[] = [];
+  
+  // Find all level 2 segments and include their nested content
+  for (const segment of segments) {
+    if (segment.level === 2) {
+      // Find all content that belongs to this level 2 section
+      const nestedSegments = segments.filter(s => 
+        s.level > 2 && 
+        s.startLine > segment.startLine && 
+        (segments.find(next => next.level <= 2 && next.startLine > segment.startLine)?.startLine || Infinity) > s.startLine
+      );
+      
+      // Combine the level 2 content with all nested content
+      let combinedContent = segment.content;
+      for (const nested of nestedSegments) {
+        combinedContent += `\n\n${'='.repeat(nested.level)} ${nested.title}\n${nested.content}`;
+      }
+      
+      level2Groups.push({
+        ...segment,
+        content: combinedContent
+      });
+    }
+  }
+  
+  return level2Groups;
+}
+
+/**
+ * Build hierarchical segment structure for Level 3+ parsing
+ */
+function buildSegmentHierarchy(segments: ContentSegment[]): HierarchicalSegment[] {
+  const hierarchy: HierarchicalSegment[] = [];
+  
+  // Process level 2 sections
+  for (const level2Segment of segments.filter(s => s.level === 2)) {
+    const children = segments.filter(s => 
+      s.level > 2 && 
+      s.startLine > level2Segment.startLine && 
+      (segments.find(next => next.level <= 2 && next.startLine > level2Segment.startLine)?.startLine || Infinity) > s.startLine
+    );
+    
+    hierarchy.push({
+      ...level2Segment,
+      hasChildren: children.length > 0,
+      children
+    });
+  }
+  
+  return hierarchy;
+}
+
+/**
+ * Create a 30040 index event for a section with children
+ */
+function createIndexEventForSection(section: HierarchicalSegment, ndk: NDK): NDKEvent {
+  const event = new NDKEvent(ndk);
+  event.kind = 30040;
+  event.created_at = Math.floor(Date.now() / 1000);
+  event.pubkey = ndk.activeUser?.pubkey || "preview-placeholder-pubkey";
+  
+  const dTag = generateDTag(section.title);
+  const [mTag, MTag] = getMimeTags(30040);
+  
+  const tags: string[][] = [
+    ["d", dTag],
+    mTag,
+    MTag,
+    ["title", section.title]
+  ];
+  
+  // Add section attributes as tags
+  addSectionAttributesToTags(tags, section.attributes);
+  
+  // Add a-tags for each child content section
+  section.children.forEach(child => {
+    const childDTag = generateDTag(child.title);
+    tags.push(["a", `30041:${event.pubkey}:${childDTag}`]);
+  });
+  
+  event.tags = tags;
+  event.content = `${section.content}\n\n${section.children.length} subsections available.`;
+  
+  return event;
+}
\ No newline at end of file
diff --git a/tests/unit/publication_tree_processor.test.ts b/tests/unit/publication_tree_processor.test.ts
new file mode 100644
index 0000000..f319362
--- /dev/null
+++ b/tests/unit/publication_tree_processor.test.ts
@@ -0,0 +1,284 @@
+/**
+ * TDD Tests for NKBIP-01 Publication Tree Processor
+ * 
+ * Tests the iterative parsing function at different hierarchy levels
+ * using deep_hierarchy_test.adoc to verify NKBIP-01 compliance.
+ */
+
+import { describe, it, expect, beforeAll } from 'vitest';
+import { readFileSync } from 'fs';
+import { parseAsciiDocWithTree, validateParseLevel, getSupportedParseLevels } from '../../src/lib/utils/asciidoc_publication_parser.js';
+
+// Mock NDK for testing
+const mockNDK = {
+  activeUser: {
+    pubkey: "test-pubkey-12345"
+  }
+} as any;
+
+// Read the test document
+const testDocumentPath = "./test_data/AsciidocFiles/deep_hierarchy_test.adoc";
+let testContent: string;
+
+try {
+  testContent = readFileSync(testDocumentPath, 'utf-8');
+} catch (error) {
+  console.error("Failed to read test document:", error);
+  testContent = `= Deep Hierarchical Document Test
+:tags: testing, hierarchy, structure
+:author: Test Author
+:type: technical
+
+This document tests all 6 levels of AsciiDoc hierarchy to validate our parse level system.
+
+== Level 2: Main Sections
+:tags: level2, main
+
+This is a level 2 section that should appear in all parse levels.
+
+=== Level 3: Subsections  
+:tags: level3, subsection
+
+This is a level 3 section that should appear in parse levels 3-6.
+
+==== Level 4: Sub-subsections
+:tags: level4, detailed
+
+This is a level 4 section that should appear in parse levels 4-6.
+
+===== Level 5: Deep Subsections
+:tags: level5, deep
+
+This is a level 5 section that should only appear in parse levels 5-6.
+
+====== Level 6: Deepest Level
+:tags: level6, deepest
+
+This is a level 6 section that should only appear in parse level 6.
+
+Content at the deepest level of our hierarchy.
+
+== Level 2: Second Main Section
+:tags: level2, main, second
+
+A second main section to ensure we have balanced content at the top level.`;
+}
+
+describe("NKBIP-01 Publication Tree Processor", () => {
+  
+  it("should validate parse levels correctly", () => {
+    // Test valid parse levels
+    expect(validateParseLevel(2)).toBe(true);
+    expect(validateParseLevel(3)).toBe(true);
+    expect(validateParseLevel(5)).toBe(true);
+    
+    // Test invalid parse levels
+    expect(validateParseLevel(1)).toBe(false);
+    expect(validateParseLevel(6)).toBe(false);
+    expect(validateParseLevel(7)).toBe(false);
+    expect(validateParseLevel(2.5)).toBe(false);
+    expect(validateParseLevel(-1)).toBe(false);
+    
+    // Test supported levels array
+    const supportedLevels = getSupportedParseLevels();
+    expect(supportedLevels).toEqual([2, 3, 4, 5]);
+  });
+
+  it("should parse Level 2 with NKBIP-01 minimal structure", async () => {
+    const result = await parseAsciiDocWithTree(testContent, mockNDK, 2);
+    
+    // Should be detected as article (has title and sections)
+    expect(result.metadata.contentType).toBe("article");
+    expect(result.metadata.parseLevel).toBe(2);
+    expect(result.metadata.title).toBe("Deep Hierarchical Document Test");
+    
+    // Should have 1 index event (30040) + 2 content events (30041) for level 2 sections
+    expect(result.indexEvent).toBeDefined();
+    expect(result.indexEvent?.kind).toBe(30040);
+    expect(result.contentEvents.length).toBe(2);
+    
+    // All content events should be kind 30041
+    result.contentEvents.forEach(event => {
+      expect(event.kind).toBe(30041);
+    });
+    
+    // Check titles of level 2 sections
+    const contentTitles = result.contentEvents.map(e => 
+      e.tags.find((t: string[]) => t[0] === "title")?.[1]
+    );
+    expect(contentTitles).toContain("Level 2: Main Sections");
+    expect(contentTitles).toContain("Level 2: Second Main Section");
+    
+    // Content should include all nested subsections as AsciiDoc
+    const firstSectionContent = result.contentEvents[0].content;
+    expect(firstSectionContent).toBeDefined();
+    // Should contain level 3, 4, 5 content as nested AsciiDoc markup
+    expect(firstSectionContent.includes("=== Level 3: Subsections")).toBe(true);
+    expect(firstSectionContent.includes("==== Level 4: Sub-subsections")).toBe(true);
+    expect(firstSectionContent.includes("===== Level 5: Deep Subsections")).toBe(true);
+  });
+
+  it("should parse Level 3 with NKBIP-01 intermediate structure", async () => {
+    const result = await parseAsciiDocWithTree(testContent, mockNDK, 3);
+    
+    expect(result.metadata.contentType).toBe("article");
+    expect(result.metadata.parseLevel).toBe(3);
+    
+    // Should have hierarchical structure
+    expect(result.indexEvent).toBeDefined();
+    expect(result.indexEvent?.kind).toBe(30040);
+    
+    // Should have mix of 30040 (for level 2 sections with children) and 30041 (for content)
+    const kinds = result.contentEvents.map(e => e.kind);
+    expect(kinds).toContain(30040); // Level 2 sections with children
+    expect(kinds).toContain(30041); // Level 3 content sections
+    
+    // Level 2 sections with children should be 30040 index events
+    const level2WithChildrenEvents = result.contentEvents.filter(e => 
+      e.kind === 30040 && 
+      e.tags.find((t: string[]) => t[0] === "title")?.[1]?.includes("Level 2:")
+    );
+    expect(level2WithChildrenEvents.length).toBe(2); // Both level 2 sections have children
+    
+    // Should have 30041 events for level 3 content
+    const level3ContentEvents = result.contentEvents.filter(e => 
+      e.kind === 30041 && 
+      e.tags.find((t: string[]) => t[0] === "title")?.[1]?.includes("Level 3:")
+    );
+    expect(level3ContentEvents.length).toBeGreaterThan(0);
+  });
+
+  it("should parse Level 4 with NKBIP-01 detailed structure", async () => {
+    const result = await parseAsciiDocWithTree(testContent, mockNDK, 4);
+    
+    expect(result.metadata.contentType).toBe("article");
+    expect(result.metadata.parseLevel).toBe(4);
+    
+    // Should have hierarchical structure with mix of 30040 and 30041 events
+    expect(result.indexEvent).toBeDefined();
+    expect(result.indexEvent?.kind).toBe(30040);
+    
+    const kinds = result.contentEvents.map(e => e.kind);
+    expect(kinds).toContain(30040); // Level 2 sections with children
+    expect(kinds).toContain(30041); // Content sections
+    
+    // Check that we have level 4 content sections
+    const contentTitles = result.contentEvents.map(e => 
+      e.tags.find((t: string[]) => t[0] === "title")?.[1]
+    );
+    expect(contentTitles).toContain("Level 4: Sub-subsections");
+  });
+
+  it("should parse Level 5 with NKBIP-01 maximum depth", async () => {
+    const result = await parseAsciiDocWithTree(testContent, mockNDK, 5);
+    
+    expect(result.metadata.contentType).toBe("article");
+    expect(result.metadata.parseLevel).toBe(5);
+    
+    // Should have hierarchical structure
+    expect(result.indexEvent).toBeDefined();
+    expect(result.indexEvent?.kind).toBe(30040);
+    
+    // Should include level 5 sections as content events
+    const contentTitles = result.contentEvents.map(e => 
+      e.tags.find((t: string[]) => t[0] === "title")?.[1]
+    );
+    expect(contentTitles).toContain("Level 5: Deep Subsections");
+  });
+
+  it("should validate event structure correctly", async () => {
+    const result = await parseAsciiDocWithTree(testContent, mockNDK, 3);
+    
+    // Test index event structure
+    expect(result.indexEvent).toBeDefined();
+    expect(result.indexEvent?.kind).toBe(30040);
+    expect(result.indexEvent?.tags).toBeDefined();
+    
+    // Check required tags
+    const indexTags = result.indexEvent!.tags;
+    const dTag = indexTags.find((t: string[]) => t[0] === "d");
+    const titleTag = indexTags.find((t: string[]) => t[0] === "title");
+    
+    expect(dTag).toBeDefined();
+    expect(titleTag).toBeDefined();
+    expect(titleTag![1]).toBe("Deep Hierarchical Document Test");
+    
+    // Test content events structure - mix of 30040 and 30041
+    result.contentEvents.forEach(event => {
+      expect([30040, 30041]).toContain(event.kind);
+      expect(event.tags).toBeDefined();
+      expect(event.content).toBeDefined();
+      
+      const eventTitleTag = event.tags.find((t: string[]) => t[0] === "title");
+      expect(eventTitleTag).toBeDefined();
+    });
+  });
+
+  it("should preserve content as AsciiDoc", async () => {
+    const result = await parseAsciiDocWithTree(testContent, mockNDK, 2);
+    
+    // Content should be preserved as original AsciiDoc, not converted to HTML
+    const firstEvent = result.contentEvents[0];
+    expect(firstEvent.content).toBeDefined();
+    
+    // Should contain AsciiDoc markup, not HTML
+    expect(firstEvent.content.includes("<")).toBe(false);
+    expect(firstEvent.content.includes("===")).toBe(true);
+  });
+
+  it("should handle attributes correctly", async () => {
+    const result = await parseAsciiDocWithTree(testContent, mockNDK, 2);
+    
+    // Document-level attributes should be in index event
+    expect(result.indexEvent).toBeDefined();
+    const indexTags = result.indexEvent!.tags;
+    
+    // Check for document attributes
+    const authorTag = indexTags.find((t: string[]) => t[0] === "author");
+    const typeTag = indexTags.find((t: string[]) => t[0] === "type");
+    const tagsTag = indexTags.find((t: string[]) => t[0] === "t");
+    
+    expect(authorTag?.[1]).toBe("Test Author");
+    expect(typeTag?.[1]).toBe("technical");
+    expect(tagsTag).toBeDefined(); // Should have at least one t-tag
+  });
+
+  it("should handle scattered notes mode", async () => {
+    // Test with content that has no document title (scattered notes)
+    const scatteredContent = `== First Note
+:tags: note1
+
+Content of first note.
+
+== Second Note  
+:tags: note2
+
+Content of second note.`;
+
+    const result = await parseAsciiDocWithTree(scatteredContent, mockNDK, 2);
+    
+    expect(result.metadata.contentType).toBe("scattered-notes");
+    expect(result.indexEvent).toBeNull(); // No index event for scattered notes
+    expect(result.contentEvents.length).toBe(2);
+    
+    // All events should be 30041 content events
+    result.contentEvents.forEach(event => {
+      expect(event.kind).toBe(30041);
+    });
+  });
+
+  it("should integrate with PublicationTree structure", async () => {
+    const result = await parseAsciiDocWithTree(testContent, mockNDK, 2);
+    
+    // Should have a PublicationTree instance
+    expect(result.tree).toBeDefined();
+    
+    // Tree should have methods for event management
+    expect(typeof result.tree.addEvent).toBe("function");
+    
+    // Event structure should be populated
+    expect(result.metadata.eventStructure).toBeDefined();
+    expect(Array.isArray(result.metadata.eventStructure)).toBe(true);
+  });
+
+});
\ No newline at end of file