diff --git a/apps/penpal/ERD.md b/apps/penpal/ERD.md
index 63eaec06b..cdcf78579 100644
--- a/apps/penpal/ERD.md
+++ b/apps/penpal/ERD.md
@@ -258,13 +258,25 @@ see-also:
 - <a id="E-PENPAL-MD-RENDER"></a>**E-PENPAL-MD-RENDER**: Each rendered block is tagged with `data-source-line` (1-indexed). Heading IDs use the same slugification algorithm as Go's goldmark renderer. Mermaid blocks produce `.mermaid-container` divs with `data-mermaid-source`.
   ← [P-PENPAL-GFM](PRODUCT.md#P-PENPAL-GFM), [P-PENPAL-MERMAID](PRODUCT.md#P-PENPAL-MERMAID)
 
-- <a id="E-PENPAL-HOME-SIDEBAR"></a>**E-PENPAL-HOME-SIDEBAR**: In home mode (no active project), `Layout.tsx` renders a sidebar tree with: ⌂ header with "+" add button and sort toggle, expandable workspace items (with child projects), standalone project items as top-level peers, and global "In Review" / "Recent" `NavLink`s in a global nav section. Visual dividers (`.home-section-divider`) separate the workspaces section, standalone projects section, and global navigation section; sections with no items are omitted along with their dividers. Workspace items show agent dots when any child project has `agentConnected`. Projects show: name (with branch as tooltip), agent dot, and expandable worktree children (when multiple worktrees exist). Non-main worktrees display a worktree icon; the main worktree does not. State: `expandedWorkspaces` and `expandedWorktreeProjects` `Set<string>`. Clicking a project navigates to `/project/{qn}`. `useProjectSort` hook controls ordering; projects with zero files sort last and are visually dimmed (`.deemphasized` class).
-  ← [P-PENPAL-HOME](PRODUCT.md#P-PENPAL-HOME), [P-PENPAL-HOME-TREE](PRODUCT.md#P-PENPAL-HOME-TREE), [P-PENPAL-HOME-PROJECT-ITEM](PRODUCT.md#P-PENPAL-HOME-PROJECT-ITEM), [P-PENPAL-HOME-NAVIGATE](PRODUCT.md#P-PENPAL-HOME-NAVIGATE)
+- <a id="E-PENPAL-HOME-SIDEBAR"></a>**E-PENPAL-HOME-SIDEBAR**: In home mode (no active project), `Layout.tsx` renders a sidebar tree with: ⌂ header with view-options button and "+" add button, expandable workspace items (with child projects), standalone project items as top-level peers, and global "In Review" / "Recent" `NavLink`s in a global nav section. Visual dividers (`.home-section-divider`) separate the workspaces section, standalone projects section, and global navigation section; sections with no items are omitted along with their dividers.
+  ← [P-PENPAL-HOME](PRODUCT.md#P-PENPAL-HOME), [P-PENPAL-HOME-TREE](PRODUCT.md#P-PENPAL-HOME-TREE)
 
 - <a id="E-PENPAL-FE-HOME-LABEL"></a>**E-PENPAL-FE-HOME-LABEL**: When `isProjectMode` is false (home screen), the sidebar home header renders the text "Home" in a `<span class="home-label">` next to the ⌂ icon. The label inherits the header's font weight and uses `margin-right: auto` to push action buttons to the right side.
   ← [P-PENPAL-HOME-LABEL](PRODUCT.md#P-PENPAL-HOME-LABEL)
 
-- <a id="E-PENPAL-SORT"></a>**E-PENPAL-SORT**: `useProjectSort` hook uses `useSyncExternalStore` backed by localStorage key `penpal-project-sort` (default `'alpha'`). Subscribes to `storage` events for cross-tab sync. Home sidebar sorts by `localeCompare` for alpha or uses server order (sorted by `cache.ProjectsSortedByModTime()`) for recent. Projects with `fileCount === 0` always sort last and get `.deemphasized` styling. The sort toggle in the home sidebar header switches between the two modes.
+- <a id="E-PENPAL-HOME-PROJECT-ITEM"></a>**E-PENPAL-HOME-PROJECT-ITEM**: Workspace items show agent dots when any child project has `agentConnected`. Projects show: name (with branch as tooltip), agent dot, and expandable worktree children (when multiple worktrees exist). Non-main worktrees display a worktree icon; the main worktree does not. State: `expandedWorkspaces` and `expandedWorktreeProjects` `Set<string>`. Clicking a project navigates to `/project/{qn}`.
+  ← [P-PENPAL-HOME-PROJECT-ITEM](PRODUCT.md#P-PENPAL-HOME-PROJECT-ITEM), [P-PENPAL-HOME-NAVIGATE](PRODUCT.md#P-PENPAL-HOME-NAVIGATE)
+
+- <a id="E-PENPAL-VIEW-OPTIONS"></a>**E-PENPAL-VIEW-OPTIONS**: The view-options button in the sidebar home header uses the Filter Projects SVG icon from the Nexus icon library. Clicking it toggles a `ViewOptionsPanel` rendered as a floating panel (`.view-options-panel`) anchored below the button. The panel uses a ref and `mousedown` listener to dismiss on outside click. State changes update `useProjectSort` immediately without dismissing the panel.
+  ← [P-PENPAL-VIEW-OPTIONS](PRODUCT.md#P-PENPAL-VIEW-OPTIONS)
+
+- <a id="E-PENPAL-VIEW-OPTIONS-SORT"></a>**E-PENPAL-VIEW-OPTIONS-SORT**: The view options panel contains a `<select>` dropdown for sort order with options A->Z and Most Recent. Selection updates the `sortOrder` value in `useProjectSort`. Home sidebar sorts by `localeCompare` for alpha or uses server order (sorted by `cache.ProjectsSortedByModTime()`) for recent.
+  ← [P-PENPAL-VIEW-OPTIONS-SORT](PRODUCT.md#P-PENPAL-VIEW-OPTIONS-SORT)
+
+- <a id="E-PENPAL-VIEW-OPTIONS-EMPTY"></a>**E-PENPAL-VIEW-OPTIONS-EMPTY**: The view options panel contains a checkbox toggle for show-empty-projects. When `showEmpty` is false, projects with `fileCount === 0` are filtered out entirely and workspaces with no visible projects are hidden. When shown, empty projects sort last and get `.deemphasized` styling.
+  ← [P-PENPAL-VIEW-OPTIONS-EMPTY](PRODUCT.md#P-PENPAL-VIEW-OPTIONS-EMPTY)
+
+- <a id="E-PENPAL-SORT"></a>**E-PENPAL-SORT**: `useProjectSort` hook uses `useSyncExternalStore` backed by localStorage keys `penpal-project-sort` (default `'alpha'`) and `penpal-show-empty` (default `'true'`). Subscribes to `storage` events for cross-tab sync.
   ← [P-PENPAL-SORT](PRODUCT.md#P-PENPAL-SORT)
 
 - <a id="E-PENPAL-HOME-DEFAULT"></a>**E-PENPAL-HOME-DEFAULT**: `HomePage` component at route `/` renders a welcome screen with the app name and `⌘P` search hint. Opening a new tab (+ button or Cmd+T) calls `openTab('/', 'Home')`. New windows open on `/`.
diff --git a/apps/penpal/PRODUCT.md b/apps/penpal/PRODUCT.md
index 2ae769927..e4db005f5 100644
--- a/apps/penpal/PRODUCT.md
+++ b/apps/penpal/PRODUCT.md
@@ -128,7 +128,13 @@ The home view is the top-level navigation state. It shows all workspaces and sta
 
 - <a id="P-PENPAL-HOME-NAVIGATE"></a>**P-PENPAL-HOME-NAVIGATE**: Clicking a project in the home tree navigates the current tab to the project view for that project. The sidebar switches to show the project's sources.
 
-- <a id="P-PENPAL-SORT"></a>**P-PENPAL-SORT**: The home sidebar header includes a sort toggle that switches between alphabetical and recent-modification order for workspaces and standalone projects. The selected order persists in localStorage and syncs across tabs/windows. Projects with zero recognized files always sort last and are visually dimmed.
+- <a id="P-PENPAL-VIEW-OPTIONS"></a>**P-PENPAL-VIEW-OPTIONS**: The home sidebar header includes a view options button (filter icon) just to the left of the "+" button. Clicking it opens a floating panel. The panel stays open while the user changes settings and dismisses only when clicking outside it (including clicking the view options button again).
+
+- <a id="P-PENPAL-VIEW-OPTIONS-SORT"></a>**P-PENPAL-VIEW-OPTIONS-SORT**: The view options panel contains a "Project order" dropdown with two options: A->Z (default) and Most Recent. Selecting an option reorders the project list immediately.
+
+- <a id="P-PENPAL-VIEW-OPTIONS-EMPTY"></a>**P-PENPAL-VIEW-OPTIONS-EMPTY**: The view options panel contains a "Show empty projects" toggle that defaults to on. When off, projects with zero recognized files are hidden entirely. When on, they appear sorted last and visually dimmed.
+
+- <a id="P-PENPAL-SORT"></a>**P-PENPAL-SORT**: The selected sort order and show-empty preference persist in localStorage and sync across tabs/windows via storage events.
 
 - <a id="P-PENPAL-HOME-DEFAULT"></a>**P-PENPAL-HOME-DEFAULT**: Opening a new tab (via + button or Cmd+T) or a new window with no target lands on the home view. The main content area shows a welcome message with the app name and a hint to select a project.
 
diff --git a/apps/penpal/TESTING.md b/apps/penpal/TESTING.md
index 48e78ab15..d7fc499f1 100644
--- a/apps/penpal/TESTING.md
+++ b/apps/penpal/TESTING.md
@@ -102,6 +102,10 @@ see-also:
 | Source Disambiguation (P-PENPAL-SRC-DISAMBIG) | — | Layout.test.tsx | — | — |
 | Home Label (P-PENPAL-HOME-LABEL) | — | Layout.test.tsx | — | — |
 | File View Margins (P-PENPAL-VIEW-MARGINS) | — | file-view-layout.test.ts | — | — |
+| View Options Panel (P-PENPAL-VIEW-OPTIONS) | — | Layout.test.tsx | — | — |
+| View Options — Sort (P-PENPAL-VIEW-OPTIONS-SORT) | — | useProjectSort.test.ts, Layout.test.tsx | — | — |
+| View Options — Empty Projects (P-PENPAL-VIEW-OPTIONS-EMPTY) | — | useProjectSort.test.ts, Layout.test.tsx | — | — |
+| Sort Persistence (P-PENPAL-SORT) | — | useProjectSort.test.ts | — | — |
 
 ## Known Coverage Gaps
 
diff --git a/apps/penpal/frontend/src/components/Layout.test.tsx b/apps/penpal/frontend/src/components/Layout.test.tsx
index 4ac048e41..38653140a 100644
--- a/apps/penpal/frontend/src/components/Layout.test.tsx
+++ b/apps/penpal/frontend/src/components/Layout.test.tsx
@@ -419,6 +419,7 @@ describe('Layout', () => {
     link.remove();
   });
 
+
   // E-PENPAL-SIDEBAR-RESIZE: sidebar resize tests
   describe('sidebar resize', () => {
     it('renders the sidebar resize handle', () => {
@@ -605,4 +606,136 @@ describe('Layout', () => {
     const breadcrumbBar = worktreeRow!.closest('.breadcrumb-bar');
     expect(breadcrumbBar).toBeNull();
   });
+
+  // E-PENPAL-VIEW-OPTIONS: view options button renders and opens panel
+  it('renders view options button in home sidebar', async () => {
+    render(
+      <MemoryRouter>
+        <Layout />
+      </MemoryRouter>,
+    );
+
+    expect(screen.getByLabelText('View options')).toBeInTheDocument();
+  });
+
+  it('opens view options panel on click', async () => {
+    render(
+      <MemoryRouter>
+        <Layout />
+      </MemoryRouter>,
+    );
+
+    const btn = screen.getByLabelText('View options');
+    await act(async () => {
+      fireEvent.click(btn);
+    });
+
+    expect(screen.getByText('Project order')).toBeInTheDocument();
+    expect(screen.getByText('Show empty projects')).toBeInTheDocument();
+  });
+
+  it('changes sort order via view options panel', async () => {
+    vi.mocked(api.listProjects).mockResolvedValue([
+      {
+        name: 'bravo',
+        qualifiedName: 'bravo',
+        workspace: '',
+        projectPath: '/tmp/bravo',
+        origin: 'standalone' as const,
+        badges: [],
+        fileCount: 3,
+        lastModified: '2026-01-02T00:00:00Z',
+      },
+      {
+        name: 'alpha',
+        qualifiedName: 'alpha',
+        workspace: '',
+        projectPath: '/tmp/alpha',
+        origin: 'standalone' as const,
+        badges: [],
+        fileCount: 5,
+        lastModified: '2026-01-01T00:00:00Z',
+      },
+    ]);
+
+    render(
+      <MemoryRouter>
+        <Layout />
+      </MemoryRouter>,
+    );
+
+    // Wait for projects to load
+    await screen.findByText('alpha');
+
+    // Default A→Z: alpha should appear before bravo
+    const sidebar = screen.getByTestId('sidebar');
+    const items = sidebar.querySelectorAll('.tree-item .label');
+    const labels = Array.from(items).map((el) => el.textContent);
+    const alphaIdx = labels.indexOf('alpha');
+    const bravoIdx = labels.indexOf('bravo');
+    expect(alphaIdx).toBeLessThan(bravoIdx);
+
+    // Open view options and switch to "Most Recent"
+    const btn = screen.getByLabelText('View options');
+    await act(async () => {
+      fireEvent.click(btn);
+    });
+    const select = screen.getByDisplayValue('A→Z');
+    await act(async () => {
+      fireEvent.change(select, { target: { value: 'recent' } });
+    });
+
+    expect(localStorage.getItem('penpal-project-sort')).toBe('recent');
+  });
+
+  it('hides empty projects when toggle is off', async () => {
+    vi.mocked(api.listProjects).mockResolvedValue([
+      {
+        name: 'has-files',
+        qualifiedName: 'has-files',
+        workspace: '',
+        projectPath: '/tmp/has-files',
+        origin: 'standalone' as const,
+        badges: [],
+        fileCount: 5,
+        lastModified: '2026-01-01T00:00:00Z',
+      },
+      {
+        name: 'empty-project',
+        qualifiedName: 'empty-project',
+        workspace: '',
+        projectPath: '/tmp/empty-project',
+        origin: 'standalone' as const,
+        badges: [],
+        fileCount: 0,
+        lastModified: '2026-01-01T00:00:00Z',
+      },
+    ]);
+
+    render(
+      <MemoryRouter>
+        <Layout />
+      </MemoryRouter>,
+    );
+
+    // Wait for projects to load — both should be visible initially
+    await screen.findByText('has-files');
+    expect(screen.getByText('empty-project')).toBeInTheDocument();
+
+    // Open view options and uncheck "Show empty projects"
+    const btn = screen.getByLabelText('View options');
+    await act(async () => {
+      fireEvent.click(btn);
+    });
+    const checkbox = screen.getByRole('checkbox');
+    expect(checkbox).toBeChecked();
+    await act(async () => {
+      fireEvent.click(checkbox);
+    });
+
+    // Empty project should be hidden
+    expect(screen.queryByText('empty-project')).not.toBeInTheDocument();
+    // Non-empty project should still be visible
+    expect(screen.getByText('has-files')).toBeInTheDocument();
+  });
 });
diff --git a/apps/penpal/frontend/src/components/Layout.tsx b/apps/penpal/frontend/src/components/Layout.tsx
index cf95a922a..40f0d134d 100644
--- a/apps/penpal/frontend/src/components/Layout.tsx
+++ b/apps/penpal/frontend/src/components/Layout.tsx
@@ -315,7 +315,24 @@ export default function Layout() {
     useCallback(() => {}, []),
   );
 
-  const { sortOrder, toggle: toggleSort } = useProjectSort();
+  const { sortOrder, setSortOrder, showEmpty, setShowEmpty } = useProjectSort();
+
+  // E-PENPAL-VIEW-OPTIONS: view options panel state
+  const [showViewOptions, setShowViewOptions] = useState(false);
+  const viewOptionsPanelRef = useRef<HTMLDivElement>(null);
+
+  // Close view options panel on outside click
+  useEffect(() => {
+    function handleClick(e: MouseEvent) {
+      if (viewOptionsPanelRef.current && !viewOptionsPanelRef.current.contains(e.target as Node)) {
+        setShowViewOptions(false);
+      }
+    }
+    if (showViewOptions) {
+      document.addEventListener('mousedown', handleClick);
+      return () => document.removeEventListener('mousedown', handleClick);
+    }
+  }, [showViewOptions]);
 
   // Group projects by workspace
   const workspaceProjects = useMemo(
@@ -329,9 +346,12 @@ export default function Layout() {
     return 0;
   }, [sortOrder]);
 
+  // E-PENPAL-VIEW-OPTIONS: filter empty projects when showEmpty is false
+  const filterEmpty = useCallback((p: APIProject) => showEmpty || p.fileCount > 0, [showEmpty]);
+
   const standaloneProjects = useMemo(() => {
-    return projects.filter((p) => p.origin === 'standalone').sort(projectSort);
-  }, [projects, sortOrder, projectSort]);
+    return projects.filter((p) => p.origin === 'standalone').filter(filterEmpty).sort(projectSort);
+  }, [projects, sortOrder, projectSort, filterEmpty]);
   const workspaces = useMemo(() => {
     const ws = [...new Set(workspaceProjects.map((p) => p.workspace))];
     ws.sort((a, b) => a.localeCompare(b));
@@ -340,10 +360,15 @@ export default function Layout() {
   const sortedWorkspaceProjects = useMemo(() => {
     const map = new Map<string, APIProject[]>();
     for (const ws of workspaces) {
-      map.set(ws, workspaceProjects.filter(p => p.workspace === ws).sort(projectSort));
+      map.set(ws, workspaceProjects.filter(p => p.workspace === ws).filter(filterEmpty).sort(projectSort));
     }
     return map;
-  }, [workspaces, workspaceProjects, projectSort]);
+  }, [workspaces, workspaceProjects, projectSort, filterEmpty]);
+
+  // E-PENPAL-VIEW-OPTIONS: hide workspaces with no visible projects when showEmpty is false
+  const visibleWorkspaces = useMemo(() => {
+    return workspaces.filter(ws => (sortedWorkspaceProjects.get(ws) || []).length > 0);
+  }, [workspaces, sortedWorkspaceProjects]);
 
   // Listen for native menu events (tab/window shortcuts)
   useEffect(() => {
@@ -384,7 +409,7 @@ export default function Layout() {
       window.removeEventListener('menu-go-back', goBack);
       window.removeEventListener('menu-go-forward', goForward);
     };
-  }, [activeTabId, clearWindowFocusOnClose, closeTab, openTab, activateTab, tabs, workspaces, standaloneProjects, goBack, goForward]);
+  }, [activeTabId, clearWindowFocusOnClose, closeTab, openTab, activateTab, tabs, visibleWorkspaces, standaloneProjects, goBack, goForward]);
 
   // Listen for find bar toggle (Tauri menu event only — in browser, native Cmd+F works)
   useEffect(() => {
@@ -1088,13 +1113,51 @@ export default function Layout() {
           <>
             {/* Home view sidebar */}
             {/* E-PENPAL-FE-HOME-LABEL: show "Home" label next to house icon on home screen */}
+            {/* E-PENPAL-VIEW-OPTIONS: view options popover with sort order and show-empty toggle */}
             <div className="sidebar-home-header">
               <span className="home-icon">⌂</span>
               <span className="home-label">Home</span>
-              <button
-                title={`Sort: ${sortOrder === 'alpha' ? 'A→Z' : 'Recent'}`}
-                onClick={toggleSort}
-              >{sortOrder === 'alpha' ? 'A→Z' : '⏱'}</button>
+              <div className="view-options-wrap" ref={viewOptionsPanelRef}>
+                <button
+                  className="view-options-btn"
+                  title="View options"
+                  aria-label="View options"
+                  aria-haspopup="true"
+                  aria-expanded={showViewOptions}
+                  onClick={() => setShowViewOptions((prev) => !prev)}
+                >
+                  <svg viewBox="0 0 24 24" fill="none" stroke="currentColor" strokeWidth="2" width="14" height="14" aria-hidden="true">
+                    <line x1="4" y1="6" x2="20" y2="6" />
+                    <circle cx="9" cy="6" r="2" />
+                    <line x1="4" y1="12" x2="20" y2="12" />
+                    <circle cx="15" cy="12" r="2" />
+                    <line x1="4" y1="18" x2="20" y2="18" />
+                    <circle cx="12" cy="18" r="2" />
+                  </svg>
+                </button>
+                {showViewOptions && (
+                  <div className="view-options-panel">
+                    <label className="view-options-label">
+                      Project order
+                      <select
+                        value={sortOrder}
+                        onChange={(e) => setSortOrder(e.target.value as 'alpha' | 'recent')}
+                      >
+                        <option value="alpha">A→Z</option>
+                        <option value="recent">Most Recent</option>
+                      </select>
+                    </label>
+                    <label className="view-options-label view-options-toggle">
+                      <input
+                        type="checkbox"
+                        checked={showEmpty}
+                        onChange={(e) => setShowEmpty(e.target.checked)}
+                      />
+                      Show empty projects
+                    </label>
+                  </div>
+                )}
+              </div>
               <button
                 title="Add workspace or project"
                 onClick={() => { setShowAddModal(true); setAddPath(''); setAddError(''); }}
@@ -1102,7 +1165,7 @@ export default function Layout() {
             </div>
 
             {/* Workspaces */}
-            {workspaces.map(ws => {
+            {visibleWorkspaces.map(ws => {
               const isExpanded = expandedWorkspaces.has(ws);
               const wsProjects = sortedWorkspaceProjects.get(ws) || [];
               const hasAgent = wsProjects.some(p => p.agentConnected);
@@ -1176,7 +1239,7 @@ export default function Layout() {
             })}
 
             {/* Divider between workspaces and standalone projects */}
-            {workspaces.length > 0 && standaloneProjects.length > 0 && (
+            {visibleWorkspaces.length > 0 && standaloneProjects.length > 0 && (
               <div className="home-section-divider" />
             )}
 
@@ -1197,7 +1260,7 @@ export default function Layout() {
             ))}
 
             {/* Divider before global nav */}
-            {(workspaces.length > 0 || standaloneProjects.length > 0) && (
+            {(visibleWorkspaces.length > 0 || standaloneProjects.length > 0) && (
               <div className="home-section-divider" />
             )}
 
diff --git a/apps/penpal/frontend/src/hooks/useProjectSort.test.ts b/apps/penpal/frontend/src/hooks/useProjectSort.test.ts
index 0c4180bd8..ecbce429e 100644
--- a/apps/penpal/frontend/src/hooks/useProjectSort.test.ts
+++ b/apps/penpal/frontend/src/hooks/useProjectSort.test.ts
@@ -6,7 +6,7 @@ beforeEach(() => {
   localStorage.clear();
 });
 
-// E-PENPAL-HOME-SIDEBAR: verifies default, toggle, persistence, and cross-instance sync.
+// E-PENPAL-SORT, E-PENPAL-VIEW-OPTIONS: verifies default, toggle, persistence, showEmpty, and cross-instance sync.
 describe('useProjectSort', () => {
   it('defaults to alpha', () => {
     const { result } = renderHook(() => useProjectSort());
@@ -55,4 +55,36 @@ describe('useProjectSort', () => {
     act(() => b.current.toggle());
     expect(a.current.sortOrder).toBe('alpha');
   });
+
+  // E-PENPAL-VIEW-OPTIONS: showEmpty tests
+  it('defaults showEmpty to true', () => {
+    const { result } = renderHook(() => useProjectSort());
+    expect(result.current.showEmpty).toBe(true);
+  });
+
+  it('reads stored showEmpty preference', () => {
+    localStorage.setItem('penpal-show-empty', 'false');
+    const { result } = renderHook(() => useProjectSort());
+    expect(result.current.showEmpty).toBe(false);
+  });
+
+  it('setShowEmpty persists to localStorage', () => {
+    const { result } = renderHook(() => useProjectSort());
+
+    act(() => result.current.setShowEmpty(false));
+    expect(result.current.showEmpty).toBe(false);
+    expect(localStorage.getItem('penpal-show-empty')).toBe('false');
+
+    act(() => result.current.setShowEmpty(true));
+    expect(result.current.showEmpty).toBe(true);
+    expect(localStorage.getItem('penpal-show-empty')).toBe('true');
+  });
+
+  it('showEmpty syncs across instances', () => {
+    const { result: a } = renderHook(() => useProjectSort());
+    const { result: b } = renderHook(() => useProjectSort());
+
+    act(() => a.current.setShowEmpty(false));
+    expect(b.current.showEmpty).toBe(false);
+  });
 });
diff --git a/apps/penpal/frontend/src/hooks/useProjectSort.ts b/apps/penpal/frontend/src/hooks/useProjectSort.ts
index 547609e85..1d264789a 100644
--- a/apps/penpal/frontend/src/hooks/useProjectSort.ts
+++ b/apps/penpal/frontend/src/hooks/useProjectSort.ts
@@ -2,7 +2,8 @@ import { useCallback, useSyncExternalStore } from 'react';
 
 export type ProjectSortOrder = 'alpha' | 'recent';
 
-const STORAGE_KEY = 'penpal-project-sort';
+const SORT_KEY = 'penpal-project-sort';
+const SHOW_EMPTY_KEY = 'penpal-show-empty';
 
 let listeners: Array<() => void> = [];
 
@@ -14,7 +15,7 @@ function subscribe(listener: () => void) {
   listeners = [...listeners, listener];
   // Cross-tab sync via storage event
   function handleStorage(e: StorageEvent) {
-    if (e.key === STORAGE_KEY) listener();
+    if (e.key === SORT_KEY || e.key === SHOW_EMPTY_KEY) listener();
   }
   window.addEventListener('storage', handleStorage);
   return () => {
@@ -23,18 +24,30 @@ function subscribe(listener: () => void) {
   };
 }
 
-function getSnapshot(): ProjectSortOrder {
-  const stored = localStorage.getItem(STORAGE_KEY);
+function getSortSnapshot(): ProjectSortOrder {
+  const stored = localStorage.getItem(SORT_KEY);
   if (stored === 'alpha' || stored === 'recent') return stored;
   return 'alpha';
 }
 
-// E-PENPAL-HOME-SIDEBAR: useSyncExternalStore backed by localStorage with cross-tab sync for project ordering.
+function getShowEmptySnapshot(): boolean {
+  const stored = localStorage.getItem(SHOW_EMPTY_KEY);
+  if (stored === 'false') return false;
+  return true; // default true
+}
+
+// E-PENPAL-SORT, E-PENPAL-VIEW-OPTIONS: useSyncExternalStore backed by localStorage with cross-tab sync for project ordering and show-empty toggle.
 export function useProjectSort() {
-  const sortOrder = useSyncExternalStore(subscribe, getSnapshot, getSnapshot);
+  const sortOrder = useSyncExternalStore(subscribe, getSortSnapshot, getSortSnapshot);
+  const showEmpty = useSyncExternalStore(subscribe, getShowEmptySnapshot, getShowEmptySnapshot);
 
   const setSortOrder = useCallback((order: ProjectSortOrder) => {
-    localStorage.setItem(STORAGE_KEY, order);
+    localStorage.setItem(SORT_KEY, order);
+    emitChange();
+  }, []);
+
+  const setShowEmpty = useCallback((show: boolean) => {
+    localStorage.setItem(SHOW_EMPTY_KEY, show ? 'true' : 'false');
     emitChange();
   }, []);
 
@@ -42,5 +55,5 @@ export function useProjectSort() {
     setSortOrder(sortOrder === 'alpha' ? 'recent' : 'alpha');
   }, [sortOrder, setSortOrder]);
 
-  return { sortOrder, setSortOrder, toggle };
+  return { sortOrder, setSortOrder, showEmpty, setShowEmpty, toggle };
 }
diff --git a/apps/penpal/frontend/src/index.css b/apps/penpal/frontend/src/index.css
index 52c9d78e5..33b94f785 100644
--- a/apps/penpal/frontend/src/index.css
+++ b/apps/penpal/frontend/src/index.css
@@ -466,6 +466,67 @@ a:hover { text-decoration: underline; }
 }
 .sidebar-home-header button:hover { color: var(--text-primary); }
 
+/* E-PENPAL-VIEW-OPTIONS: view options floating panel */
+.view-options-wrap { position: relative; display: inline-flex; }
+.view-options-btn {
+  display: flex;
+  align-items: center;
+  justify-content: center;
+}
+.view-options-btn svg { display: block; }
+.view-options-panel {
+  position: absolute;
+  top: calc(100% + 6px);
+  right: 0;
+  min-width: 180px;
+  background: var(--bg-surface);
+  border: 1px solid var(--border-default);
+  border-radius: 6px;
+  padding: 10px 12px;
+  box-shadow: var(--shadow-float);
+  z-index: 30;
+  display: flex;
+  flex-direction: column;
+  gap: 10px;
+}
+.view-options-label {
+  display: flex;
+  flex-direction: column;
+  gap: 4px;
+  font-size: 0.75em;
+  font-weight: 600;
+  color: var(--text-muted);
+  text-transform: uppercase;
+  letter-spacing: 0.3px;
+}
+.view-options-label select {
+  font-size: 1.15em;
+  font-weight: 400;
+  text-transform: none;
+  letter-spacing: normal;
+  padding: 3px 6px;
+  border: 1px solid var(--border-subtle);
+  border-radius: 4px;
+  background: var(--bg-surface-secondary);
+  color: var(--text-primary);
+  cursor: pointer;
+}
+.view-options-toggle {
+  flex-direction: row;
+  align-items: center;
+  gap: 6px;
+  font-size: 0.8em;
+  font-weight: 400;
+  text-transform: none;
+  letter-spacing: normal;
+  color: var(--text-secondary);
+  cursor: pointer;
+}
+.view-options-toggle input[type="checkbox"] {
+  margin: 0;
+  cursor: pointer;
+}
+
 /* ── Sidebar tree items ── */
 .tree-item {
   display: flex;