diff --git a/frontend/layouts/default.vue b/frontend/layouts/default.vue
index 19341b9..e87d7ae 100644
--- a/frontend/layouts/default.vue
+++ b/frontend/layouts/default.vue
@@ -1,30 +1,63 @@
 <script setup lang="ts">
+import { terminalThemes } from '~/composables/useTerminalThemes'
+
 const auth = useAuthStore()
+const showSettings = ref(false)
 
 // Redirect to login if not authenticated
 if (!auth.isAuthenticated) {
   navigateTo('/login')
 }
 
-// Apply persisted theme on layout mount
+// Settings state
+const settings = ref<Record<string, string>>({})
+const settingsLoading = ref(false)
+const settingsSaved = ref(false)
+
 onMounted(async () => {
   if (!auth.isAuthenticated) return
   try {
-    const settings = await $fetch('/api/settings', {
+    settings.value = await $fetch('/api/settings', {
       headers: { Authorization: `Bearer ${auth.token}` },
     }) as Record<string, string>
-    const theme = settings.theme || 'dark'
-    if (theme === 'light') {
-      document.documentElement.classList.remove('dark')
-      document.documentElement.classList.add('light')
-    } else {
-      document.documentElement.classList.remove('light')
-      document.documentElement.classList.add('dark')
-    }
+    // Sync to localStorage
+    if (settings.value.terminalTheme) localStorage.setItem('wraith_terminal_theme', settings.value.terminalTheme)
+    if (settings.value.fontSize) localStorage.setItem('wraith_font_size', settings.value.fontSize)
+    if (settings.value.scrollbackLines) localStorage.setItem('wraith_scrollback', settings.value.scrollbackLines)
   } catch {
-    // Default to dark theme if settings unavailable
-    document.documentElement.classList.add('dark')
+    // defaults
   }
+  document.documentElement.classList.add('dark')
+})
+
+async function saveSettings() {
+  settingsLoading.value = true
+  await $fetch('/api/settings', {
+    method: 'PUT',
+    body: settings.value,
+    headers: { Authorization: `Bearer ${auth.token}` },
+  })
+  settingsLoading.value = false
+  settingsSaved.value = true
+  localStorage.setItem('wraith_terminal_theme', settings.value.terminalTheme || 'wraith')
+  localStorage.setItem('wraith_font_size', settings.value.fontSize || '14')
+  localStorage.setItem('wraith_scrollback', settings.value.scrollbackLines || '10000')
+  setTimeout(() => (settingsSaved.value = false), 2000)
+}
+
+const terminalTheme = computed({
+  get: () => settings.value.terminalTheme || 'wraith',
+  set: (v: string) => { settings.value.terminalTheme = v },
+})
+
+const scrollback = computed({
+  get: () => settings.value.scrollbackLines || '10000',
+  set: (v: string) => { settings.value.scrollbackLines = v },
+})
+
+const fontSize = computed({
+  get: () => settings.value.fontSize || '14',
+  set: (v: string) => { settings.value.fontSize = v },
 })
 </script>
 
@@ -39,15 +72,95 @@ onMounted(async () => {
         <NuxtLink to="/" class="text-sm text-gray-400 hover:text-white">Home</NuxtLink>
         <NuxtLink to="/vault" class="text-sm text-gray-400 hover:text-white">Vault</NuxtLink>
         <NuxtLink to="/profile" class="text-sm text-gray-400 hover:text-white">Profile</NuxtLink>
-        <NuxtLink to="/settings" class="text-sm text-gray-400 hover:text-white">Settings</NuxtLink>
+        <button @click="showSettings = !showSettings" class="text-sm text-gray-400 hover:text-white" :class="showSettings ? 'text-white' : ''">Settings</button>
         <button @click="auth.logout()" class="text-sm text-gray-500 hover:text-red-400">Logout</button>
       </div>
     </header>
-    <!-- Main content area — relative for SessionContainer absolute positioning -->
+    <!-- Main content area -->
     <div class="flex-1 flex overflow-hidden relative">
       <slot />
-      <!-- Session container persists across page navigation, overlays content when sessions are active -->
+      <!-- Session container persists across page navigation -->
       <SessionContainer />
+
+      <!-- Settings sidebar overlay -->
+      <aside
+        v-if="showSettings"
+        class="absolute right-0 top-0 h-full w-96 bg-gray-900 border-l border-gray-800 shadow-2xl z-50 flex flex-col overflow-y-auto"
+      >
+        <!-- Header -->
+        <div class="p-4 border-b border-gray-800 flex items-center justify-between shrink-0">
+          <h3 class="text-sm font-semibold text-white">Settings</h3>
+          <button @click="showSettings = false" class="text-gray-500 hover:text-gray-300 text-lg leading-none">&times;</button>
+        </div>
+
+        <div class="p-4 space-y-6 flex-1 overflow-y-auto">
+          <!-- Terminal Theme Picker -->
+          <section>
+            <h4 class="text-xs font-semibold text-gray-500 uppercase tracking-wider mb-2">Terminal Theme</h4>
+            <div class="grid grid-cols-2 gap-2">
+              <button
+                v-for="t in terminalThemes"
+                :key="t.id"
+                @click="terminalTheme = t.id"
+                class="relative rounded-lg border p-2 text-left transition-all cursor-pointer"
+                :class="terminalTheme === t.id
+                  ? 'border-wraith-500 ring-1 ring-wraith-500/30'
+                  : 'border-gray-700 hover:border-gray-600'"
+              >
+                <div
+                  class="h-14 rounded-md mb-1 flex items-end p-1.5 overflow-hidden"
+                  :style="{ backgroundColor: (t.theme.background as string) }"
+                >
+                  <div class="w-full text-[8px] font-mono leading-tight">
+                    <span :style="{ color: (t.theme.green as string) }">user</span><span :style="{ color: (t.theme.foreground as string) }">@</span><span :style="{ color: (t.theme.blue as string) }">host</span><span :style="{ color: (t.theme.foreground as string) }">:~$ </span><span :style="{ color: (t.theme.foreground as string) }">ls</span>
+                    <br>
+                    <span :style="{ color: (t.theme.cyan as string) }">drwxr-xr-x</span>
+                    <span :style="{ color: (t.theme.yellow as string) }"> README</span>
+                    <br>
+                    <span :style="{ color: (t.theme.red as string) }">error:</span>
+                    <span :style="{ color: (t.theme.foreground as string) }"> fail</span>
+                  </div>
+                </div>
+                <div class="flex gap-0.5 mb-0.5">
+                  <span v-for="c in [t.theme.red, t.theme.green, t.theme.yellow, t.theme.blue, t.theme.magenta, t.theme.cyan]"
+                    :key="(c as string)" class="w-2.5 h-1.5 rounded-sm" :style="{ backgroundColor: (c as string) }" />
+                </div>
+                <p class="text-[11px] text-gray-300">{{ t.name }}</p>
+                <div v-if="terminalTheme === t.id" class="absolute top-1 right-1 w-2 h-2 rounded-full bg-wraith-500" />
+              </button>
+            </div>
+            <p class="text-[10px] text-gray-600 mt-2">Applies to new terminal sessions.</p>
+          </section>
+
+          <!-- Font Size & Scrollback -->
+          <section>
+            <h4 class="text-xs font-semibold text-gray-500 uppercase tracking-wider mb-2">Terminal Options</h4>
+            <div class="space-y-3">
+              <div>
+                <label class="block text-xs text-gray-400 mb-1">Font Size</label>
+                <div class="flex items-center gap-2">
+                  <input v-model="fontSize" type="number" min="8" max="32"
+                    class="bg-gray-800 text-white px-3 py-1.5 rounded border border-gray-700 w-20 text-sm" />
+                  <span class="text-xs text-gray-500">px</span>
+                </div>
+              </div>
+              <div>
+                <label class="block text-xs text-gray-400 mb-1">Scrollback Lines</label>
+                <input v-model="scrollback" type="number" min="1000" max="100000" step="1000"
+                  class="bg-gray-800 text-white px-3 py-1.5 rounded border border-gray-700 w-28 text-sm" />
+              </div>
+            </div>
+          </section>
+        </div>
+
+        <!-- Save button -->
+        <div class="p-4 border-t border-gray-800 shrink-0">
+          <button @click="saveSettings" :disabled="settingsLoading"
+            class="w-full py-2 bg-wraith-600 hover:bg-wraith-700 text-white rounded text-sm font-medium disabled:opacity-50">
+            {{ settingsSaved ? 'Saved!' : settingsLoading ? 'Saving...' : 'Save Settings' }}
+          </button>
+        </div>
+      </aside>
     </div>
   </div>
 </template>
diff --git a/frontend/pages/settings.vue b/frontend/pages/settings.vue
deleted file mode 100644
index 77c8d89..0000000
--- a/frontend/pages/settings.vue
+++ /dev/null
@@ -1,164 +0,0 @@
-<script setup lang="ts">
-import { terminalThemes } from '~/composables/useTerminalThemes'
-
-const auth = useAuthStore()
-const settings = ref<Record<string, string>>({})
-const loading = ref(false)
-const saved = ref(false)
-
-onMounted(async () => {
-  settings.value = await $fetch('/api/settings', {
-    headers: { Authorization: `Bearer ${auth.token}` },
-  }) as Record<string, string>
-  applyTheme(settings.value.theme || 'dark')
-  // Sync terminal theme from server or fallback to localStorage
-  if (settings.value.terminalTheme) {
-    localStorage.setItem('wraith_terminal_theme', settings.value.terminalTheme)
-  }
-  if (settings.value.fontSize) {
-    localStorage.setItem('wraith_font_size', settings.value.fontSize)
-  }
-  if (settings.value.scrollbackLines) {
-    localStorage.setItem('wraith_scrollback', settings.value.scrollbackLines)
-  }
-})
-
-async function save() {
-  loading.value = true
-  await $fetch('/api/settings', {
-    method: 'PUT',
-    body: settings.value,
-    headers: { Authorization: `Bearer ${auth.token}` },
-  })
-  loading.value = false
-  saved.value = true
-  applyTheme(settings.value.theme || 'dark')
-  // Persist terminal settings to localStorage for immediate use by useTerminal
-  localStorage.setItem('wraith_terminal_theme', settings.value.terminalTheme || 'wraith')
-  localStorage.setItem('wraith_font_size', settings.value.fontSize || '14')
-  localStorage.setItem('wraith_scrollback', settings.value.scrollbackLines || '10000')
-  setTimeout(() => (saved.value = false), 2000)
-}
-
-function applyTheme(t: string) {
-  if (t === 'light') {
-    document.documentElement.classList.remove('dark')
-    document.documentElement.classList.add('light')
-  } else {
-    document.documentElement.classList.remove('light')
-    document.documentElement.classList.add('dark')
-  }
-}
-
-const theme = computed({
-  get: () => settings.value.theme || 'dark',
-  set: (v: string) => { settings.value.theme = v },
-})
-
-const terminalTheme = computed({
-  get: () => settings.value.terminalTheme || 'wraith',
-  set: (v: string) => { settings.value.terminalTheme = v },
-})
-
-const scrollback = computed({
-  get: () => settings.value.scrollbackLines || '10000',
-  set: (v: string) => { settings.value.scrollbackLines = v },
-})
-
-const fontSize = computed({
-  get: () => settings.value.fontSize || '14',
-  set: (v: string) => { settings.value.fontSize = v },
-})
-</script>
-
-<template>
-  <div class="max-w-3xl mx-auto p-6">
-    <h2 class="text-xl font-bold text-white mb-6">Settings</h2>
-
-    <div class="space-y-8">
-      <!-- Appearance -->
-      <section>
-        <h3 class="text-sm font-semibold text-gray-400 uppercase tracking-wider mb-3">Appearance</h3>
-        <div class="space-y-4">
-          <div>
-            <label class="block text-sm text-gray-400 mb-1">App Theme</label>
-            <select v-model="theme" class="bg-gray-800 text-white px-3 py-2 rounded border border-gray-700 text-sm">
-              <option value="dark">Dark</option>
-              <option value="light">Light</option>
-            </select>
-          </div>
-        </div>
-      </section>
-
-      <!-- Terminal -->
-      <section>
-        <h3 class="text-sm font-semibold text-gray-400 uppercase tracking-wider mb-3">Terminal</h3>
-        <div class="space-y-4">
-          <!-- Terminal Theme Picker -->
-          <div>
-            <label class="block text-sm text-gray-400 mb-2">Terminal Theme</label>
-            <div class="grid grid-cols-2 sm:grid-cols-3 lg:grid-cols-4 gap-2">
-              <button
-                v-for="t in terminalThemes"
-                :key="t.id"
-                @click="terminalTheme = t.id"
-                class="relative rounded-lg border p-2 text-left transition-all cursor-pointer"
-                :class="terminalTheme === t.id
-                  ? 'border-wraith-500 ring-1 ring-wraith-500/30'
-                  : 'border-gray-700 hover:border-gray-600'"
-              >
-                <!-- Color preview bar -->
-                <div
-                  class="h-16 rounded-md mb-1.5 flex items-end p-1.5 gap-px overflow-hidden"
-                  :style="{ backgroundColor: (t.theme.background as string) }"
-                >
-                  <!-- Sample text -->
-                  <div class="w-full text-[9px] font-mono leading-tight">
-                    <span :style="{ color: (t.theme.green as string) }">user</span><span :style="{ color: (t.theme.foreground as string) }">@</span><span :style="{ color: (t.theme.blue as string) }">host</span><span :style="{ color: (t.theme.foreground as string) }">:~$ </span><span :style="{ color: (t.theme.foreground as string) }">ls -la</span>
-                    <br>
-                    <span :style="{ color: (t.theme.cyan as string) }">drwxr-xr-x</span>
-                    <span :style="{ color: (t.theme.yellow as string) }"> README.md</span>
-                    <br>
-                    <span :style="{ color: (t.theme.red as string) }">error:</span>
-                    <span :style="{ color: (t.theme.foreground as string) }"> not found</span>
-                  </div>
-                </div>
-                <!-- Color swatches -->
-                <div class="flex gap-0.5 mb-1">
-                  <span v-for="c in [t.theme.red, t.theme.green, t.theme.yellow, t.theme.blue, t.theme.magenta, t.theme.cyan]"
-                    :key="(c as string)" class="w-3 h-2 rounded-sm" :style="{ backgroundColor: (c as string) }" />
-                </div>
-                <p class="text-xs text-gray-300">{{ t.name }}</p>
-                <!-- Selected indicator -->
-                <div v-if="terminalTheme === t.id" class="absolute top-1 right-1 w-2 h-2 rounded-full bg-wraith-500" />
-              </button>
-            </div>
-            <p class="text-xs text-gray-600 mt-2">Theme applies to new terminal sessions after saving.</p>
-          </div>
-
-          <div class="flex gap-6">
-            <div>
-              <label class="block text-sm text-gray-400 mb-1">Font Size</label>
-              <div class="flex items-center gap-2">
-                <input v-model="fontSize" type="number" min="8" max="32"
-                  class="bg-gray-800 text-white px-3 py-2 rounded border border-gray-700 w-20 text-sm" />
-                <span class="text-xs text-gray-500">px</span>
-              </div>
-            </div>
-
-            <div>
-              <label class="block text-sm text-gray-400 mb-1">Scrollback Lines</label>
-              <input v-model="scrollback" type="number" min="1000" max="100000" step="1000"
-                class="bg-gray-800 text-white px-3 py-2 rounded border border-gray-700 w-28 text-sm" />
-            </div>
-          </div>
-        </div>
-      </section>
-
-      <button @click="save" :disabled="loading"
-        class="px-5 py-2 bg-wraith-600 hover:bg-wraith-700 text-white rounded text-sm font-medium disabled:opacity-50">
-        {{ saved ? 'Saved!' : loading ? 'Saving...' : 'Save Settings' }}
-      </button>
-    </div>
-  </div>
-</template>
diff --git a/images/wraith-logo.png b/images/wraith-logo.png
new file mode 100644
index 0000000..bead744
Binary files /dev/null and b/images/wraith-logo.png differ