diff --git a/gadget-code/frontend/src/components/FilesPanel.tsx b/gadget-code/frontend/src/components/FilesPanel.tsx
new file mode 100644
index 0000000..5182576
--- /dev/null
+++ b/gadget-code/frontend/src/components/FilesPanel.tsx
@@ -0,0 +1,52 @@
+import { WorkspaceMode } from '../lib/types';
+
+interface FilesPanelProps {
+  workspaceMode: WorkspaceMode;
+}
+
+export default function FilesPanel({ workspaceMode }: FilesPanelProps) {
+  const isReadOnly = workspaceMode === WorkspaceMode.Agent;
+  const isReadWrite = workspaceMode === WorkspaceMode.User;
+
+  return (
+    <div className="border-t border-border-subtle">
+      <div className="flex items-center justify-between px-4 py-2 bg-bg-tertiary">
+        <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider">
+          Files
+        </h3>
+        <div className="flex items-center gap-1">
+          <span
+            className={`w-6 h-6 flex items-center justify-center font-mono font-bold text-xs rounded border ${
+              isReadOnly
+                ? 'border-green-500 strobe text-green-500'
+                : 'border-border-default text-text-muted'
+            }`}
+            title="Read Only"
+          >
+            RO
+          </span>
+          <span
+            className={`w-6 h-6 flex items-center justify-center font-mono font-bold text-xs rounded border ${
+              isReadWrite
+                ? 'border-green-500 strobe text-green-500'
+                : 'border-border-default text-text-muted'
+            }`}
+            title="Read / Write"
+          >
+            RW
+          </span>
+        </div>
+      </div>
+      <div className="p-4 text-center text-text-muted text-sm">
+        <p>File browser coming soon</p>
+        <p className="text-xs mt-1">
+          {isReadOnly
+            ? 'Files are read-only while Agent is working'
+            : isReadWrite
+              ? 'Files are read/write enabled'
+              : 'Select User or Agent mode to access files'}
+        </p>
+      </div>
+    </div>
+  );
+}
\ No newline at end of file
diff --git a/gadget-code/frontend/src/components/LogPanel.tsx b/gadget-code/frontend/src/components/LogPanel.tsx
new file mode 100644
index 0000000..5c5f93a
--- /dev/null
+++ b/gadget-code/frontend/src/components/LogPanel.tsx
@@ -0,0 +1,122 @@
+import { useRef, useEffect } from 'react';
+import { WorkspaceMode } from '../lib/types';
+
+interface LogEntry {
+  id: string;
+  timestamp: Date;
+  level: string;
+  message: string;
+}
+
+interface LogPanelProps {
+  logs: LogEntry[];
+  expanded: boolean;
+  workspaceMode: WorkspaceMode;
+  onToggleExpand: () => void;
+}
+
+export default function LogPanel({ logs, expanded, workspaceMode, onToggleExpand }: LogPanelProps) {
+  const scrollRef = useRef<HTMLDivElement>(null);
+
+  useEffect(() => {
+    if (scrollRef.current && !expanded) {
+      scrollRef.current.scrollTop = scrollRef.current.scrollHeight;
+    }
+  }, [logs, expanded]);
+
+  if (expanded) {
+    return (
+      <div className="absolute inset-0 z-10 bg-bg-primary flex flex-col border-t border-border-subtle">
+        <div className="flex items-center justify-between px-4 py-2 bg-bg-tertiary shrink-0 border-b border-border-subtle">
+          <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider">
+            Log
+          </h3>
+          <button
+            onClick={onToggleExpand}
+            className="w-6 h-6 flex items-center justify-center text-text-muted hover:text-text-secondary transition-colors"
+            title="Collapse"
+          >
+            ▾
+          </button>
+        </div>
+        <div
+          ref={scrollRef}
+          className="flex-1 overflow-y-auto p-2 font-mono text-xs"
+        >
+          {logs.length === 0 ? (
+            <div className="text-text-muted">No log entries</div>
+          ) : (
+            logs.map((entry) => (
+              <div key={entry.id} className="flex gap-2 py-0.5">
+                <span className="text-text-muted shrink-0">
+                  {entry.timestamp.toLocaleTimeString()}
+                </span>
+                <span
+                  className={`shrink-0 ${
+                    entry.level === 'error'
+                      ? 'text-red-500'
+                      : entry.level === 'warn'
+                        ? 'text-yellow-500'
+                        : entry.level === 'info'
+                          ? 'text-blue-400'
+                          : 'text-text-secondary'
+                  }`}
+                >
+                  [{entry.level.toUpperCase()}]
+                </span>
+                <span className="text-text-primary">{entry.message}</span>
+              </div>
+            ))
+          )}
+        </div>
+      </div>
+    );
+  }
+
+  return (
+    <div className="h-48 border-t border-border-subtle bg-bg-secondary flex flex-col shrink-0">
+      <div className="flex items-center justify-between px-4 py-2 bg-bg-tertiary shrink-0">
+        <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider">
+          Log
+        </h3>
+        <button
+          onClick={onToggleExpand}
+          className="w-6 h-6 flex items-center justify-center text-text-muted hover:text-text-secondary transition-colors"
+          title="Expand"
+        >
+          ▴
+        </button>
+      </div>
+      <div
+        ref={scrollRef}
+        className="flex-1 overflow-y-auto p-2 font-mono text-xs"
+      >
+        {logs.length === 0 ? (
+          <div className="text-text-muted">No log entries</div>
+        ) : (
+          logs.map((entry) => (
+            <div key={entry.id} className="flex gap-2 py-0.5">
+              <span className="text-text-muted shrink-0">
+                {entry.timestamp.toLocaleTimeString()}
+              </span>
+              <span
+                className={`shrink-0 ${
+                  entry.level === 'error'
+                    ? 'text-red-500'
+                    : entry.level === 'warn'
+                      ? 'text-yellow-500'
+                      : entry.level === 'info'
+                        ? 'text-blue-400'
+                        : 'text-text-secondary'
+                }`}
+              >
+                [{entry.level.toUpperCase()}]
+              </span>
+              <span className="text-text-primary">{entry.message}</span>
+            </div>
+          ))
+        )}
+      </div>
+    </div>
+  );
+}
\ No newline at end of file
diff --git a/gadget-code/frontend/src/components/WorkspaceModeIndicator.tsx b/gadget-code/frontend/src/components/WorkspaceModeIndicator.tsx
new file mode 100644
index 0000000..47e60a7
--- /dev/null
+++ b/gadget-code/frontend/src/components/WorkspaceModeIndicator.tsx
@@ -0,0 +1,84 @@
+import { WorkspaceMode } from '../lib/types';
+
+interface WorkspaceModeIndicatorProps {
+  mode: WorkspaceMode;
+  onChange?: (mode: WorkspaceMode) => void;
+  disabled?: boolean;
+}
+
+const MODE_LABELS: Record<WorkspaceMode, string> = {
+  [WorkspaceMode.Idle]: 'I',
+  [WorkspaceMode.Syncing]: 'S',
+  [WorkspaceMode.User]: 'U',
+  [WorkspaceMode.Agent]: 'A',
+};
+
+const MODE_COLORS: Record<WorkspaceMode, string> = {
+  [WorkspaceMode.Idle]: 'text-gray-500 border-gray-500',
+  [WorkspaceMode.Syncing]: 'text-yellow-500 border-yellow-500',
+  [WorkspaceMode.User]: 'text-blue-400 border-blue-400',
+  [WorkspaceMode.Agent]: 'text-green-500 border-green-500',
+};
+
+export default function WorkspaceModeIndicator({
+  mode,
+  onChange,
+  disabled = false,
+}: WorkspaceModeIndicatorProps) {
+  const modes = [
+    WorkspaceMode.Idle,
+    WorkspaceMode.Syncing,
+    WorkspaceMode.User,
+    WorkspaceMode.Agent,
+  ];
+
+  const handleClick = (m: WorkspaceMode) => {
+    if (disabled || m === WorkspaceMode.Syncing) return;
+    if (m === mode) return;
+    if (mode !== WorkspaceMode.Idle) return;
+    onChange?.(m);
+  };
+
+  return (
+    <div className="flex items-center gap-1">
+      {modes.map((m) => {
+        const isActive = m === mode;
+        const isClickable =
+          !disabled && m !== WorkspaceMode.Syncing && mode === WorkspaceMode.Idle;
+        const colorClass = MODE_COLORS[m];
+        const inactiveClass = isActive
+          ? `border-2 ${colorClass} strobe shadow-[inset_0_1px_3px_rgba(0,0,0,0.5)]`
+          : `border border-border-default`;
+
+        return (
+          <button
+            key={m}
+            onClick={() => handleClick(m)}
+            disabled={!isClickable}
+            title={
+              m === WorkspaceMode.Idle
+                ? 'Idle'
+                : m === WorkspaceMode.Syncing
+                  ? 'Syncing'
+                  : m === WorkspaceMode.User
+                    ? 'User Mode'
+                    : 'Agent Mode'
+            }
+            className={`
+              w-7 h-7 flex items-center justify-center
+              font-mono font-bold text-sm rounded
+              transition-all duration-150 select-none
+              ${inactiveClass}
+              ${isActive ? `active:text-${colorClass.split('-')[1]}` : 'text-text-muted'}
+              ${isClickable ? 'hover:border-border-highlight hover:text-text-secondary cursor-pointer' : ''}
+              ${!isClickable && !isActive ? 'cursor-default' : ''}
+              ${isActive ? 'translate-y-0.5 shadow-inner' : 'translate-y-0'}
+            `}
+          >
+            {MODE_LABELS[m]}
+          </button>
+        );
+      })}
+    </div>
+  );
+}
\ No newline at end of file
diff --git a/gadget-code/frontend/src/index.css b/gadget-code/frontend/src/index.css
index 0b5670d..bda31df 100644
--- a/gadget-code/frontend/src/index.css
+++ b/gadget-code/frontend/src/index.css
@@ -74,4 +74,13 @@ input, textarea {
 
 ::-webkit-scrollbar-thumb:hover {
   background: var(--color-border-highlight);
+}
+
+@keyframes strobe {
+  0%, 100% { opacity: 1; }
+  50% { opacity: 0.4; }
+}
+
+.strobe {
+  animation: strobe 1.2s ease-in-out infinite;
 }
\ No newline at end of file
diff --git a/gadget-code/frontend/src/lib/socket.ts b/gadget-code/frontend/src/lib/socket.ts
index 5f50de0..b9ae7f2 100644
--- a/gadget-code/frontend/src/lib/socket.ts
+++ b/gadget-code/frontend/src/lib/socket.ts
@@ -27,6 +27,13 @@ export interface ClientToServerEvents {
     chatSession: any,
     cb: (success: boolean, chatSessionId: string) => void,
   ) => void;
+  requestWorkspaceMode: (
+    registration: any,
+    project: any,
+    chatSession: any,
+    mode: string,
+    cb: (success: boolean, mode: string) => void,
+  ) => void;
 }
 
 export interface SocketEvents {
@@ -66,6 +73,7 @@ export interface SocketEvents {
     message: string;
     role: "user" | "assistant" | "system";
   }) => void;
+  workspaceModeChanged: (mode: string) => void;
   connect: () => void;
   disconnect: (reason: string) => void;
   error: (error: Error) => void;
@@ -132,6 +140,10 @@ class SocketClient {
       },
     );
 
+    this.socket.on("workspaceModeChanged", (mode: string) => {
+      this.emit("workspaceModeChanged", mode);
+    });
+
     this._socket.on("connect", () => {
       this.reconnectAttempts = 0;
       this.emit("connect");
@@ -218,6 +230,28 @@ class SocketClient {
       }
     });
   }
+
+  requestWorkspaceMode(
+    registration: any,
+    project: any,
+    chatSession: any,
+    mode: string,
+  ): Promise<boolean> {
+    return new Promise((resolve) => {
+      if (this._socket?.connected) {
+        this._socket.emit(
+          "requestWorkspaceMode",
+          registration,
+          project,
+          chatSession,
+          mode,
+          (success: boolean, _mode: string) => resolve(success),
+        );
+      } else {
+        resolve(false);
+      }
+    });
+  }
 }
 
 export const socketClient = new SocketClient();
diff --git a/gadget-code/frontend/src/lib/types.ts b/gadget-code/frontend/src/lib/types.ts
new file mode 100644
index 0000000..979d293
--- /dev/null
+++ b/gadget-code/frontend/src/lib/types.ts
@@ -0,0 +1,6 @@
+export enum WorkspaceMode {
+  Idle = "idle",
+  Syncing = "syncing",
+  User = "user",
+  Agent = "agent",
+}
\ No newline at end of file
diff --git a/gadget-code/frontend/src/pages/ChatSessionView.tsx b/gadget-code/frontend/src/pages/ChatSessionView.tsx
index 9f318ec..477eeaa 100644
--- a/gadget-code/frontend/src/pages/ChatSessionView.tsx
+++ b/gadget-code/frontend/src/pages/ChatSessionView.tsx
@@ -2,6 +2,10 @@ import { useState, useEffect, useRef } from 'react';
 import { useParams, useNavigate } from 'react-router-dom';
 import { socketClient } from '../lib/socket';
 import { chatSessionApi, projectApi, type ChatSession, type ChatTurn, type Project } from '../lib/api';
+import { WorkspaceMode } from '../lib/types';
+import WorkspaceModeIndicator from '../components/WorkspaceModeIndicator';
+import FilesPanel from '../components/FilesPanel';
+import LogPanel from '../components/LogPanel';
 
 interface ChatMessage {
   id: string;
@@ -17,11 +21,18 @@ interface ChatMessage {
   timestamp: Date;
 }
 
+interface LogEntry {
+  id: string;
+  timestamp: Date;
+  level: string;
+  message: string;
+}
+
 export default function ChatSessionView() {
   const { projectId, sessionId } = useParams<{ projectId: string; sessionId: string }>();
   const navigate = useNavigate();
   const socket = socketClient.socket;
-  
+
   const [project, setProject] = useState<Project | null>(null);
   const [session, setSession] = useState<ChatSession | null>(null);
   const [messages, setMessages] = useState<ChatMessage[]>([]);
@@ -30,9 +41,14 @@ export default function ChatSessionView() {
   const [loading, setLoading] = useState(true);
   const [error, setError] = useState('');
   const [sessionLocked, setSessionLocked] = useState(true);
-  
+  const [workspaceMode, setWorkspaceMode] = useState<WorkspaceMode>(WorkspaceMode.Idle);
+  const [logExpanded, setLogExpanded] = useState(false);
+  const [logs, setLogs] = useState<LogEntry[]>([]);
+  const [toast, setToast] = useState<string | null>(null);
+
   const messagesEndRef = useRef<HTMLDivElement>(null);
   const inputRef = useRef<HTMLTextAreaElement>(null);
+  const toastTimerRef = useRef<ReturnType<typeof setTimeout> | null>(null);
 
   useEffect(() => {
     loadSessionData();
@@ -47,14 +63,20 @@ export default function ChatSessionView() {
     scrollToBottom();
   }, [messages]);
 
+  useEffect(() => {
+    return () => {
+      if (toastTimerRef.current) {
+        clearTimeout(toastTimerRef.current);
+      }
+    };
+  }, []);
+
   const loadSessionData = async () => {
     try {
-      // Load chat session first
       if (sessionId) {
         const sessionData = await chatSessionApi.get(sessionId);
         setSession(sessionData);
 
-        // Load project using the project _id from the session
         const projectRef = sessionData.project;
         const projectObjectId = typeof projectRef === 'string' ? projectRef : projectRef?._id;
         if (projectObjectId) {
@@ -62,7 +84,6 @@ export default function ChatSessionView() {
           setProject(projectData);
         }
 
-        // Load existing turns
         const turns = await chatSessionApi.getTurns(sessionId);
         const chatMessages: ChatMessage[] = turns.map((turn: ChatTurn) => ({
           id: turn._id,
@@ -71,7 +92,6 @@ export default function ChatSessionView() {
           timestamp: new Date(turn.createdAt),
         }));
 
-        // Add assistant responses
         turns.forEach((turn: ChatTurn) => {
           if (turn.thinking || turn.response || turn.toolCalls?.length) {
             chatMessages.push({
@@ -86,8 +106,6 @@ export default function ChatSessionView() {
         });
 
         setMessages(chatMessages);
-        
-        // Session is already locked by ProjectManager before navigation
         setSessionLocked(true);
       }
     } catch (err) {
@@ -104,6 +122,8 @@ export default function ChatSessionView() {
     socket.on('response', handleResponse);
     socket.on('toolCall', handleToolCall);
     socket.on('workOrderComplete', handleWorkOrderComplete);
+    socket.on('workspaceModeChanged', handleWorkspaceModeChanged);
+    socket.on('log:entry', handleLogEntry);
   };
 
   const cleanupSocketListeners = () => {
@@ -113,6 +133,8 @@ export default function ChatSessionView() {
     socket.off('response', handleResponse);
     socket.off('toolCall', handleToolCall);
     socket.off('workOrderComplete', handleWorkOrderComplete);
+    socket.off('workspaceModeChanged', handleWorkspaceModeChanged);
+    socket.off('log:entry', handleLogEntry);
   };
 
   const handleThinking = (content: string) => {
@@ -172,9 +194,51 @@ export default function ChatSessionView() {
     }
   };
 
+  const handleWorkspaceModeChanged = (mode: string) => {
+    setWorkspaceMode(mode as WorkspaceMode);
+  };
+
+  const handleLogEntry = (data: { level: string; message: string; timestamp: number }) => {
+    setLogs(prev => [
+      ...prev,
+      {
+        id: `log-${Date.now()}-${Math.random()}`,
+        timestamp: new Date(data.timestamp),
+        level: data.level,
+        message: data.message,
+      },
+    ]);
+  };
+
+  const showToast = (message: string) => {
+    setToast(message);
+    if (toastTimerRef.current) {
+      clearTimeout(toastTimerRef.current);
+    }
+    toastTimerRef.current = setTimeout(() => {
+      setToast(null);
+    }, 4000);
+  };
+
+  const handleWorkspaceModeChange = async (mode: WorkspaceMode) => {
+    if (!session || !project) return;
+
+    const registration = session.drone as any;
+    const success = await socketClient.requestWorkspaceMode(
+      registration,
+      project,
+      session,
+      mode,
+    );
+    if (!success) {
+      showToast(`Cannot switch to ${mode} mode: workspace is not idle`);
+    }
+  };
+
   const handleSubmitPrompt = async (e: React.FormEvent) => {
     e.preventDefault();
     if (!promptInput.trim() || isProcessing || !socket || !sessionLocked) return;
+    if (workspaceMode !== WorkspaceMode.Agent) return;
 
     const userMessage: ChatMessage = {
       id: `temp-${Date.now()}`,
@@ -188,7 +252,6 @@ export default function ChatSessionView() {
     setIsProcessing(true);
     setError('');
 
-    // Add assistant message placeholder
     setMessages(prev => [...prev, {
       id: `response-${Date.now()}`,
       role: 'assistant',
@@ -196,7 +259,6 @@ export default function ChatSessionView() {
       timestamp: new Date(),
     }]);
 
-    // Emit prompt to backend
     socketClient.emitServer('submitPrompt', promptInput.trim());
   };
 
@@ -204,6 +266,11 @@ export default function ChatSessionView() {
     messagesEndRef.current?.scrollIntoView({ behavior: 'smooth' });
   };
 
+  const promptDisabled = isProcessing || workspaceMode !== WorkspaceMode.Agent || !sessionLocked;
+  const promptPlaceholder = workspaceMode !== WorkspaceMode.Agent
+    ? 'Select Agent mode to enter a prompt.'
+    : 'Enter your prompt... (Shift+Enter for new line)';
+
   if (loading) {
     return (
       <div className="flex-1 flex items-center justify-center bg-bg-primary">
@@ -229,49 +296,121 @@ export default function ChatSessionView() {
   }
 
   return (
-    <div className="flex-1 flex bg-bg-primary overflow-hidden">
-      {/* Main Chat Area */}
+    <div className="flex-1 flex bg-bg-primary overflow-hidden relative">
+      {/* Toast notification */}
+      {toast && (
+        <div className="absolute top-4 left-1/2 -translate-x-1/2 z-50 px-4 py-2 bg-bg-elevated border border-border-default rounded shadow-lg text-sm text-text-primary">
+          {toast}
+        </div>
+      )}
+
+      {/* Content Area */}
       <div className="flex-1 flex flex-col">
-        {/* Messages */}
-        <div className="flex-1 overflow-y-auto p-4 space-y-4">
-          {messages.map((message) => (
-            <ChatMessageBubble key={message.id} message={message} />
-          ))}
-          <div ref={messagesEndRef} />
+        {/* Chat View (75%) */}
+        <div className="flex-1 flex flex-col overflow-hidden">
+          {/* Messages */}
+          <div className="flex-1 overflow-y-auto p-4 space-y-4">
+            {messages.map((message) => (
+              <ChatMessageBubble key={message.id} message={message} />
+            ))}
+            <div ref={messagesEndRef} />
+          </div>
+
+          {/* Prompt Input */}
+          <div className="border-t border-border-subtle p-4 bg-bg-secondary shrink-0">
+            <form onSubmit={handleSubmitPrompt} className="flex gap-2">
+              <textarea
+                ref={inputRef}
+                value={promptInput}
+                onChange={(e) => setPromptInput(e.target.value)}
+                onKeyDown={(e) => {
+                  if (e.key === 'Enter' && !e.shiftKey) {
+                    e.preventDefault();
+                    handleSubmitPrompt(e);
+                  }
+                }}
+                placeholder={promptPlaceholder}
+                className="flex-1 px-3 py-2 bg-bg-tertiary border border-border-default rounded text-text-primary focus:border-brand focus:outline-none resize-none disabled:opacity-50"
+                rows={3}
+                disabled={promptDisabled}
+              />
+              <button
+                type="submit"
+                disabled={promptDisabled || !promptInput.trim()}
+                className="px-6 py-2 bg-brand text-white rounded hover:bg-red-700 transition-colors disabled:opacity-50 disabled:cursor-not-allowed"
+              >
+                {isProcessing ? 'Processing...' : 'Send'}
+              </button>
+            </form>
+          </div>
         </div>
 
-      {/* Prompt Input */}
-      <div className="border-t border-border-subtle p-4 bg-bg-secondary">
-        <form onSubmit={handleSubmitPrompt} className="flex gap-2">
-          <textarea
-            ref={inputRef}
-            value={promptInput}
-            onChange={(e) => setPromptInput(e.target.value)}
-            onKeyDown={(e) => {
-              if (e.key === 'Enter' && !e.shiftKey) {
-                e.preventDefault();
-                handleSubmitPrompt(e);
-              }
-            }}
-            placeholder="Enter your prompt... (Shift+Enter for new line)"
-            className="flex-1 px-3 py-2 bg-bg-tertiary border border-border-default rounded text-text-primary focus:border-brand focus:outline-none resize-none"
-            rows={3}
-            disabled={isProcessing || !sessionLocked}
-          />
-          <button
-            type="submit"
-            disabled={isProcessing || !promptInput.trim() || !sessionLocked}
-            className="px-6 py-2 bg-brand text-white rounded hover:bg-red-700 transition-colors disabled:opacity-50 disabled:cursor-not-allowed"
-          >
-            {isProcessing ? 'Processing...' : 'Send'}
-          </button>
-        </form>
-      </div>
+        {/* Log Panel (25%) */}
+        <LogPanel
+          logs={logs}
+          expanded={logExpanded}
+          workspaceMode={workspaceMode}
+          onToggleExpand={() => setLogExpanded(!logExpanded)}
+        />
       </div>
 
-      {/* Session Sidebar */}
+      {/* Sidebar */}
       <div className="w-80 border-l border-border-subtle bg-bg-secondary flex flex-col overflow-y-auto">
-        <SessionSidebar session={session} project={project} sessionLocked={sessionLocked} />
+        {/* SESSION Panel */}
+        <div className="border-b border-border-subtle">
+          <div className="flex items-center justify-between px-4 py-2 bg-bg-tertiary">
+            <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider">
+              Session
+            </h3>
+            <WorkspaceModeIndicator
+              mode={workspaceMode}
+              onChange={handleWorkspaceModeChange}
+              disabled={!sessionLocked}
+            />
+          </div>
+          <div className="p-4 space-y-3">
+            <div className="flex items-center gap-1 text-green-500">
+              <span>✓</span>
+              <span className="text-xs">{sessionLocked ? 'Locked' : 'Unlocked'}</span>
+            </div>
+            <div>
+              <div className="text-xs text-text-muted">Name</div>
+              <div className="text-text-primary">{session?.name}</div>
+            </div>
+            <div>
+              <div className="text-xs text-text-muted">Model</div>
+              <div className="text-text-primary">{session?.selectedModel}</div>
+            </div>
+          </div>
+        </div>
+
+        {/* PROJECT Panel */}
+        <div className="border-b border-border-subtle">
+          <div className="flex items-center justify-between px-4 py-2 bg-bg-tertiary">
+            <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider">
+              Project
+            </h3>
+          </div>
+          <div className="p-4 space-y-2">
+            {project ? (
+              <>
+                <div>
+                  <div className="text-xs text-text-muted">Name</div>
+                  <div className="text-text-primary">{project.name}</div>
+                </div>
+                <div>
+                  <div className="text-xs text-text-muted">Slug</div>
+                  <div className="font-mono text-xs text-text-secondary">{project.slug}</div>
+                </div>
+              </>
+            ) : (
+              <div className="text-text-muted text-sm">Loading...</div>
+            )}
+          </div>
+        </div>
+
+        {/* FILES Panel */}
+        <FilesPanel workspaceMode={workspaceMode} />
       </div>
     </div>
   );
@@ -336,97 +475,4 @@ function ChatMessageBubble({ message }: { message: ChatMessage }) {
       </div>
     </div>
   );
-}
-
-function SessionSidebar({ session, project, sessionLocked }: { 
-  session: ChatSession | null; 
-  project: Project | null;
-  sessionLocked: boolean;
-}) {
-  if (!session) {
-    return (
-      <div className="p-4">
-        <p className="text-text-muted">No session loaded</p>
-      </div>
-    );
-  }
-
-  return (
-    <div className="p-4 space-y-4">
-      <div>
-        <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider mb-2">
-          Session
-        </h3>
-        <div className="space-y-2">
-          <div>
-            <div className="text-xs text-text-muted">Name</div>
-            <div className="text-text-primary">{session.name}</div>
-          </div>
-          <div>
-            <div className="text-xs text-text-muted">ID</div>
-            <div className="font-mono text-xs text-text-secondary truncate">
-              {session._id}
-            </div>
-          </div>
-          <div>
-            <div className="text-xs text-text-muted">Mode</div>
-            <div className="text-text-primary capitalize">{session.mode}</div>
-          </div>
-          <div>
-            <div className="text-xs text-text-muted">Status</div>
-            <div className="flex items-center gap-1 text-green-500">
-              <span>✓</span>
-              <span>{sessionLocked ? 'Locked' : 'Unlocked'}</span>
-            </div>
-          </div>
-        </div>
-      </div>
-
-      <div className="border-t border-border-subtle pt-4">
-        <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider mb-2">
-          Model
-        </h3>
-        <div className="text-text-primary">
-          {session.selectedModel}
-        </div>
-        <div className="text-xs text-text-muted mt-1">
-          Provider: {typeof session.provider === 'string' ? 'Loaded' : session.provider?.name}
-        </div>
-      </div>
-
-      <div className="border-t border-border-subtle pt-4">
-        <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider mb-2">
-          Stats
-        </h3>
-        <div className="grid grid-cols-3 gap-2 text-center">
-          <div>
-            <div className="text-xs text-text-muted">TC</div>
-            <div className="text-lg font-mono">{session.stats.toolCallCount}</div>
-          </div>
-          <div>
-            <div className="text-xs text-text-muted">FO</div>
-            <div className="text-lg font-mono">0</div>
-          </div>
-          <div>
-            <div className="text-xs text-text-muted">SA</div>
-            <div className="text-lg font-mono">0</div>
-          </div>
-        </div>
-      </div>
-
-      <div className="border-t border-border-subtle pt-4">
-        <h3 className="text-sm font-semibold text-text-secondary uppercase tracking-wider mb-2">
-          Project
-        </h3>
-        {project ? (
-          <div className="space-y-1">
-            <div className="text-text-primary">{project.name}</div>
-            <div className="font-mono text-xs text-text-secondary">{project.slug}</div>
-          </div>
-        ) : (
-          <div className="text-text-muted text-sm">Loading...</div>
-        )}
-      </div>
-    </div>
-  );
-}
+}
\ No newline at end of file
diff --git a/gadget-code/src/lib/code-session.ts b/gadget-code/src/lib/code-session.ts
index 126acf6..c2d1929 100644
--- a/gadget-code/src/lib/code-session.ts
+++ b/gadget-code/src/lib/code-session.ts
@@ -15,6 +15,7 @@ import {
   ChatTurnStatus,
   GadgetId,
   ChatTurnDocument,
+  WorkspaceMode,
 } from "@gadget/api";
 
 import { ChatSessionService, SocketService } from "../services/index.ts";
@@ -26,6 +27,7 @@ export class CodeSession extends SocketSession {
   protected chatSession: IChatSession | undefined;
   protected selectedDrone: IDroneRegistration | undefined;
   protected currentTurnId: GadgetId | undefined;
+  protected workspaceMode: WorkspaceMode = WorkspaceMode.Idle;
 
   constructor(socket: GadgetSocket, user: IUser) {
     super(socket, user);
@@ -81,6 +83,7 @@ export class CodeSession extends SocketSession {
           this.project = project;
           SocketService.registerChatSession(chatSession._id, this);
           droneSession.setChatSessionId(chatSession._id);
+          droneSession.setCodeSession(this);
         }
         cb(success, chatSessionId);
       },
@@ -142,4 +145,13 @@ export class CodeSession extends SocketSession {
       },
     );
   }
+
+  /**
+   * Called by DroneSession when the drone emits a workspace mode change.
+   * Updates local state and forwards to the IDE socket.
+   */
+  onWorkspaceModeChanged(mode: WorkspaceMode): void {
+    this.workspaceMode = mode;
+    this.socket.emit("workspaceModeChanged", mode);
+  }
 }
diff --git a/gadget-code/src/lib/drone-session.ts b/gadget-code/src/lib/drone-session.ts
index e700383..b19bdda 100644
--- a/gadget-code/src/lib/drone-session.ts
+++ b/gadget-code/src/lib/drone-session.ts
@@ -7,6 +7,7 @@ import {
   IDroneRegistration,
   ChatTurnStatus,
   GadgetId,
+  WorkspaceMode,
 } from "@gadget/api";
 import {
   GadgetSocket,
@@ -21,6 +22,8 @@ export class DroneSession extends SocketSession {
   registration: IDroneRegistration;
   chatSessionId: GadgetId | undefined;
   currentTurnId: GadgetId | undefined;
+  workspaceMode: WorkspaceMode = WorkspaceMode.Idle;
+  codeSession: import("./code-session.js").CodeSession | undefined;
 
   constructor(socket: GadgetSocket, registration: IDroneRegistration) {
     super(socket, registration.user as IUser);
@@ -39,6 +42,7 @@ export class DroneSession extends SocketSession {
       this.onRequestCrashRecovery.bind(this),
     );
     this.socket.on("requestTermination", this.onRequestTermination.bind(this));
+    this.socket.on("workspaceModeChanged", this.onWorkspaceModeChanged.bind(this));
   }
 
   /**
@@ -179,6 +183,25 @@ export class DroneSession extends SocketSession {
     this.currentTurnId = turnId;
   }
 
+  /**
+   * Sets the associated code session for routing events back to the IDE.
+   */
+  setCodeSession(codeSession: import("./code-session.js").CodeSession): void {
+    this.codeSession = codeSession;
+  }
+
+  /**
+   * Called when the drone emits a workspace mode change.
+   */
+  async onWorkspaceModeChanged(mode: WorkspaceMode): Promise<void> {
+    this.workspaceMode = mode;
+    this.log.info("workspace mode changed", { mode });
+
+    if (this.codeSession) {
+      this.codeSession.onWorkspaceModeChanged(mode);
+    }
+  }
+
   /**
    * Called when the drone requests crash recovery for an incomplete work order.
    */
diff --git a/gadget-drone/src/gadget-drone.ts b/gadget-drone/src/gadget-drone.ts
index ac2082b..9183136 100644
--- a/gadget-drone/src/gadget-drone.ts
+++ b/gadget-drone/src/gadget-drone.ts
@@ -313,6 +313,7 @@ class GadgetDrone extends GadgetProcess {
     });
     if (this.workspaceMode === WorkspaceMode.Idle) {
       this.workspaceMode = mode;
+      this.socket!.emit("workspaceModeChanged", this.workspaceMode);
       return cb(true, this.workspaceMode);
     }
     return cb(false, this.workspaceMode);
diff --git a/packages/api/src/messages/drone.ts b/packages/api/src/messages/drone.ts
index 1156f52..834ebc6 100644
--- a/packages/api/src/messages/drone.ts
+++ b/packages/api/src/messages/drone.ts
@@ -6,6 +6,7 @@ import { IChatSession } from "../interfaces/chat-session.ts";
 import { IChatTurn } from "../interfaces/chat-turn.ts";
 import { IDroneRegistration } from "../interfaces/drone-registration.ts";
 import { IProject } from "../interfaces/project.ts";
+import { WorkspaceMode } from "./ide.ts";
 
 export type ProcessWorkOrderCallback = (
   success: boolean,
@@ -49,3 +50,5 @@ export type CrashRecoveryResponseMessage = (data: {
 export type RequestTerminationMessage = (
   cb: (success: boolean) => void,
 ) => void;
+
+export type WorkspaceModeChangedMessage = (mode: WorkspaceMode) => void;
diff --git a/packages/api/src/messages/socket.ts b/packages/api/src/messages/socket.ts
index c7ac222..3e1a863 100644
--- a/packages/api/src/messages/socket.ts
+++ b/packages/api/src/messages/socket.ts
@@ -11,6 +11,7 @@ import {
   RequestCrashRecoveryMessage,
   CrashRecoveryResponseMessage,
   RequestTerminationMessage,
+  WorkspaceModeChangedMessage,
 } from "./drone.ts";
 import {
   RequestSessionLockMessage,
@@ -55,6 +56,7 @@ export interface ClientToServerEvents {
   workOrderComplete: WorkOrderCompleteMessage;
   requestCrashRecovery: RequestCrashRecoveryMessage;
   requestTermination: RequestTerminationMessage;
+  workspaceModeChanged: WorkspaceModeChangedMessage;
 }
 
 export interface ServerToClientEvents {
@@ -76,6 +78,7 @@ export interface ServerToClientEvents {
   response: ResponseMessage;
   toolCall: ToolCallMessage;
   workOrderComplete: WorkOrderCompleteMessage;
+  workspaceModeChanged: WorkspaceModeChangedMessage;
 }
 
 export interface SocketData {