A reset cradle with integral reset tool assembly, that automatically positions the lock cylinder, the reset tool assembly, and all associated components, and choreographs the operations that need to be performed in the right sequential order. The reset cradle generally comprises a two-section housing including a base section with centrally-protruding tubular post into which the lock cylinder may be inserted, and a separate hub section rotatably seated on the base. Inside the housing, a cam is engaged against the post and is rotatable thereabout along with relative rotation of the two-section housing. A reset member is also operative inside the housing, and is engaged by rotation of the cam for axial displacement into the lock cylinder. Similarly, a detent pin is slidably seated in the post and is engaged by the cam for axial displacement into the lock cylinder. Relative rotation of the two-part housing resets the lock cylinder via the reset member and detent pin, and allows the lock cylinder to be placed in a learn mode for rekeying without a valid key.