diff --git a/desktop/public/icon.png b/desktop/public/icon.png
new file mode 100644
index 00000000..f54af5bd
Binary files /dev/null and b/desktop/public/icon.png differ
diff --git a/desktop/src/components/PageWrapper.tsx b/desktop/src/components/PageWrapper.tsx
index 1777e029..fef7b0a0 100644
--- a/desktop/src/components/PageWrapper.tsx
+++ b/desktop/src/components/PageWrapper.tsx
@@ -4,7 +4,7 @@ export function PageWrapper({ children }: { children: React.ReactNode }) {
   return (
     <ScrollArea
       h="calc(100vh - var(--app-shell-padding-total))"
-      w="calc(100vw - var(--app-navbar-width) - var(--app-shell-padding-total))"
+      w="100%"
       type="auto"
       scrollbarSize={6}
       scrollHideDelay={100}
diff --git a/desktop/src/layout/AppShell/AppShell.module.css b/desktop/src/layout/AppShell/AppShell.module.css
index 5df6d7e4..5533dd71 100644
--- a/desktop/src/layout/AppShell/AppShell.module.css
+++ b/desktop/src/layout/AppShell/AppShell.module.css
@@ -17,4 +17,7 @@
 
 .main {
   background-color: var(--mantine-color-other-backgroundColors-main);
+  display: flex;
+  flex-direction: column;
+  min-height: 0; /* allow nested ScrollArea to compute height */
 }
diff --git a/desktop/src/layout/AppShell/AppShell.tsx b/desktop/src/layout/AppShell/AppShell.tsx
index 012a8061..4c9255f1 100644
--- a/desktop/src/layout/AppShell/AppShell.tsx
+++ b/desktop/src/layout/AppShell/AppShell.tsx
@@ -4,7 +4,7 @@ import {
   Notification as MantineNotification,
   Text,
 } from "@mantine/core";
-import { ReactNode, useEffect } from "react";
+import { ReactNode, useEffect, useState } from "react";
 import { useAppContext } from "../../hooks/useAppContext.tsx";
 import { useNotifier } from "../../hooks/useNotifier.tsx";
 import { colorFromType, NotificationType } from "../../types/notification";
@@ -18,6 +18,7 @@ interface AppShellProps {
 export function AppShell({ children }: AppShellProps) {
   const { isLoading, hasError } = useAppContext();
   const { notification, setNotification } = useNotifier();
+  const [collapsed, setCollapsed] = useState(false);
 
   useEffect(() => {
     if (hasError) {
@@ -33,7 +34,7 @@ export function AppShell({ children }: AppShellProps) {
   return (
     <MantineAppShell
       header={{ height: "var(--app-header-height)" }}
-      navbar={{ width: "var(--app-navbar-width)", breakpoint: "sm" }}
+      navbar={{ width: collapsed ? 56 : 250, breakpoint: "sm" }}
       padding="md"
       classNames={{
         root: styles.appShell,
@@ -43,7 +44,7 @@ export function AppShell({ children }: AppShellProps) {
       }}
     >
       <MantineAppShell.Navbar>
-        <Sidebar />
+        <Sidebar collapsed={collapsed} onToggle={() => setCollapsed((c) => !c)} />
       </MantineAppShell.Navbar>
 
       <MantineAppShell.Main>
@@ -62,7 +63,7 @@ export function AppShell({ children }: AppShellProps) {
             <Text c="red">{hasError.message}</Text>
           </div>
         ) : (
-          <div style={{ position: "relative", height: "100%" }}>
+          <div style={{ position: "relative", height: "100%", flex: 1, minHeight: 0 }}>
             {children}
             {isLoading && (
               <div
diff --git a/desktop/src/layout/Sidebar/Sidebar.module.css b/desktop/src/layout/Sidebar/Sidebar.module.css
index abd1ee93..016e81a1 100644
--- a/desktop/src/layout/Sidebar/Sidebar.module.css
+++ b/desktop/src/layout/Sidebar/Sidebar.module.css
@@ -1,20 +1,57 @@
 .sidebar {
   display: flex;
   flex-direction: column;
-  padding: 0 1rem 1rem 1rem;
+  padding: var(--mantine-spacing-sm);
   height: 100%;
-  overflow-y: auto;
+  overflow: hidden;
+}
+
+/* Collapsed state */
+.sidebarCollapsed {
+  width: 56px;
+}
+
+/* Hide labels when collapsed */
+.sidebarCollapsed :global(.mantine-NavLink-label) {
+  display: none;
+}
+
+/* Center icons in collapsed state */
+.sidebarCollapsed :global(.mantine-NavLink-root) {
+  justify-content: center;
+  padding-left: var(--mantine-spacing-sm);
+  padding-right: var(--mantine-spacing-sm);
+}
+
+
+.sidebarCollapsed :global(.mantine-NavLink-section) {
+    margin-inline-end: 0;
+}
+/* Hide caret/chevron if any in collapsed state */
+.sidebarCollapsed :global(.mantine-NavLink-rightSection) {
+  display: none;
+}
+
+/* Reduce logo area when collapsed */
+.sidebarCollapsed .sidebar__logo {
+  height: 56px;
+  padding: 0.5rem;
+}
+
+.sidebar__context {
+    background-color: var(--mantine-color-gray-3);
+    color: var(--mantine-color-body-0);
+    padding: var(--mantine-spacing-xs);
+    margin: var(--mantine-spacing-xs);
+    border-radius: var(--mantine-radius-sm);
 }
 
 .sidebar__logo {
-  margin: -1rem -1rem 1rem -1rem;
   padding: 1rem;
-  background-color: var(--mantine-color-other-backgroundColors-header);
-  border-bottom: 1px solid var(--mantine-color-other-colors-border);
   display: flex;
   align-items: center;
   justify-content: center;
-  height: 64px;
+  height: 100px;
 }
 
 .sidebar__logo img {
@@ -22,6 +59,7 @@
   width: 100%;
   height: 100%;
   object-fit: contain;
+  filter: drop-shadow(0 0 20px color-mix(in srgb, var(--mantine-color-pink-0) 10%, transparent));
 }
 
 .sidebar__content {
@@ -37,11 +75,6 @@
   gap: 0.5rem;
 }
 
-.sidebar__tree {
-  flex: 1;
-  overflow-y: auto;
-}
-
 .sidebar__section {
   padding: 1rem;
   border-bottom: 1px solid var(--mantine-color-other-colors-border);
diff --git a/desktop/src/layout/Sidebar/Sidebar.tsx b/desktop/src/layout/Sidebar/Sidebar.tsx
index 2468dc4c..3e56d8e9 100644
--- a/desktop/src/layout/Sidebar/Sidebar.tsx
+++ b/desktop/src/layout/Sidebar/Sidebar.tsx
@@ -1,18 +1,53 @@
-import { Group, Image, NavLink, Stack } from "@mantine/core";
+import {
+  ActionIcon,
+  Box,
+  Button, ButtonGroup,
+  Flex,
+  Group,
+  Image,
+  Menu,
+  NavLink,
+  Stack,
+  Text,
+  Tooltip,
+} from "@mantine/core";
 import {
   IconDatabase,
   IconFolders,
   IconLogs,
   IconSettings,
   IconTerminal2,
+  IconInfoCircle,
+  IconReload,
+  IconLayoutSidebarLeftExpand,
+  IconLayoutSidebarLeftCollapse,
+  IconStarFilled,
+  IconStar,
+  IconTools,
+  IconArrowRight,
+  IconChevronCompactRight,
+  IconChevronRight,
+  IconShield,
+  IconShieldLockFilled,
+  IconTemplate,
+  IconShieldLock,
 } from "@tabler/icons-react";
 import { useCallback } from "react";
 import { Link, useLocation } from "wouter";
+import { useAppContext } from "../../hooks/useAppContext.tsx";
 import styles from "./Sidebar.module.css";
-import iconImage from "/logo-dark.png";
+import iconImage from "/icon.png";
+
+interface SidebarProps {
+  collapsed: boolean;
+  onToggle: () => void;
+}
 
-export function Sidebar() {
+export function Sidebar({ collapsed, onToggle }: SidebarProps) {
   const [location, setLocation] = useLocation();
+  const { config, selectedWorkspace } = useAppContext();
+  const currentWorkspaceName = selectedWorkspace || config?.currentWorkspace || "—";
+  const currentNamespace = config?.currentNamespace || "—";
 
   const navigateToWorkspaces = useCallback(() => {
     setLocation(`/workspaces`);
@@ -39,12 +74,30 @@ export function Sidebar() {
   }, [setLocation]);
 
   return (
-    <div className={styles.sidebar}>
-      <Link to="/" className={styles.sidebar__logo}>
-        <Image src={iconImage} alt="flow" fit="contain" />
-      </Link>
-      <Stack gap="xs">
-        <Group gap="xs" mt="md">
+    <Stack justify="space-between" className={`${styles.sidebar} ${collapsed ? styles.sidebarCollapsed : ""}`}>
+      <Box>
+        <Flex justify="space-between" align={ collapsed ? "center" : "flex-end" } direction={ collapsed ? "column-reverse" : "column" }>
+          <ActionIcon
+            variant="transparent"
+            aria-label={collapsed ? "Expand sidebar" : "Collapse sidebar"}
+            onClick={onToggle}
+            color="bodyLight"
+          >
+            {collapsed ? <IconLayoutSidebarLeftExpand size={16} /> : <IconLayoutSidebarLeftCollapse size={16} />}
+          </ActionIcon>
+          <Link to="/" className={styles.sidebar__logo}>
+            <Image src={iconImage} alt="flow" fit="contain" />
+          </Link>
+        </Flex>
+
+        <Stack gap="xs" mt="xl" justify="stretch" align={ collapsed ? "center" : "flex-start" }>
+          <NavLink
+            label="Favorites"
+            leftSection={<IconStar size={16} />}
+            active={location.startsWith("/favorites")}
+            variant="filled"
+            onClick={navigateToWorkspaces}
+          />
           <NavLink
             label="Workspaces"
             leftSection={<IconFolders size={16} />}
@@ -60,45 +113,83 @@ export function Sidebar() {
             variant="filled"
             onClick={navigateToExecutables}
           />
+        </Stack>
+      </Box>
+      <Box>
+        {collapsed ? (
+          <Group justify="center" gap={8}>
+            <Tooltip label={`Workspace: ${currentWorkspaceName} | Namespace: ${currentNamespace}`} position="right" openDelay={300}>
+              <ActionIcon variant="transparent" size="sm" aria-label="Context">
+                <IconInfoCircle size={14} />
+              </ActionIcon>
+            </Tooltip>
+            <Tooltip label="Sync" position="right" openDelay={300}>
+              <ActionIcon variant="light" size="sm" aria-label="Sync workspaces and executables">
+                <IconReload size={14} />
+              </ActionIcon>
+            </Tooltip>
+          </Group>
+        ) : (
 
-          <NavLink
-            label="Logs"
-            leftSection={<IconLogs size={16} />}
-            active={location.startsWith("/logs")}
-            variant="filled"
-            onClick={navigateToLogs}
-          />
+          <Stack gap="xs" align="stretch" justify="center">
 
-          <NavLink
-            label="Data"
-            leftSection={<IconDatabase size={16} />}
-            variant="filled"
-            childrenOffset={28}
-          >
-            <NavLink
-              label="Cache"
-              variant="filled"
-              active={location.startsWith("/cache")}
-              onClick={navigateToCache}
-            />
-            <NavLink
-              label="Vault"
-              variant="filled"
-              active={location.startsWith("/vault")}
-              onClick={navigateToVault}
-            />
-          </NavLink>
-
-          <NavLink
-            label="Settings"
-            leftSection={<IconSettings size={16} />}
-            active={location.startsWith("/settings")}
-            variant="filled"
-            onClick={navigateToSettings}
-          />
-        </Group>
+            <Box className={styles.sidebar__context}>
+              <Group gap="xs" justify="space-between" mb="xs">
+                <Text size="xs" fw={700} c="dimmed">Context</Text>
+                <IconInfoCircle size={16} />
+              </Group>
+              <Group>
+                <Text size="xs" c="dimmed">Workspace</Text>
+                <Text size="xs" truncate>{currentWorkspaceName}</Text>
+              </Group>
+              <Group>
+                <Text size="xs" c="dimmed" mt={6}>Namespace</Text>
+                <Text size="xs" truncate>{currentNamespace}</Text>
+              </Group>
+            </Box>
+            <ButtonGroup style={{ alignSelf: 'center' }}>
+              <Button
+                leftSection={<IconReload size={12} />}
+                size="compact-xs" variant="transparent" justify="start">Sync</Button>
+              <Menu shadow="md" position="top-start" offset={15} width={200} withArrow>
+                <Menu.Target>
+                  <Button
+                    leftSection={<IconTools size={12} />}
+                    size="compact-xs"
+                    variant="transparent"
+                    onClick={navigateToSettings}
+                    justify="start"
+                  >Tools</Button>
+                </Menu.Target>
 
-      </Stack>
-    </div>
+                <Menu.Dropdown>
+                  <Menu.Item leftSection={<IconShieldLock size={14} />}>
+                    Vault
+                  </Menu.Item>
+                  <Menu.Item leftSection={<IconDatabase size={14} />}>
+                    Cache Store
+                  </Menu.Item>
+                  <Menu.Item leftSection={<IconTemplate size={14} />}>
+                    Templates
+                  </Menu.Item>
+                  <Menu.Item
+                    leftSection={<IconLogs size={14} />}
+                  >
+                    Logs
+                  </Menu.Item>
+                </Menu.Dropdown>
+              </Menu>
+              <Button
+                leftSection={<IconSettings size={12} />}
+                size="compact-xs"
+                variant="transparent"
+                onClick={navigateToSettings}
+                justify="start"
+              >Settings</Button>
+            </ButtonGroup>
+          </Stack>
+        )}
+      </Box>
+    </Stack>
   );
 }