diff --git a/dashboard/src/App.tsx b/dashboard/src/App.tsx
index 4679ae0..7e7b18f 100644
--- a/dashboard/src/App.tsx
+++ b/dashboard/src/App.tsx
@@ -18,6 +18,7 @@ import { motion, AnimatePresence } from 'framer-motion';
 import type { UiConfig } from './types';
 import { LogoMark } from './components/LogoMark';
 import { NotificationBell } from './components/NotificationBell';
+import { UserAvatarDropdown } from './components/UserAvatarDropdown';
 import { CopyablePublicKey } from './components/CopyablePublicKey';
 import { FreighterAdapter } from './lib/wallet/FreighterAdapter';
 
@@ -336,6 +337,10 @@ const App = () => {
                 </span>
               ) : null}
             </div>
+            <UserAvatarDropdown
+              onSettings={() => setActiveTab('settings')}
+              onNotifications={() => setActiveTab('notifications')}
+            />
           </div>
         </header>
 
diff --git a/dashboard/src/components/UserAvatarDropdown.tsx b/dashboard/src/components/UserAvatarDropdown.tsx
new file mode 100644
index 0000000..018a2ea
--- /dev/null
+++ b/dashboard/src/components/UserAvatarDropdown.tsx
@@ -0,0 +1,276 @@
+import React, { useState, useRef, useEffect } from 'react';
+import { motion, AnimatePresence } from 'framer-motion';
+import {
+  Settings,
+  LogOut,
+  ChevronDown,
+  Shield,
+  Bell,
+  HelpCircle,
+  Copy,
+  Check,
+} from 'lucide-react';
+
+interface UserAvatarDropdownProps {
+  /** Display name shown in the avatar and dropdown header */
+  displayName?: string;
+  /** Email or sub-label shown under the display name */
+  email?: string;
+  /** Role badge label */
+  role?: string;
+  /** Callback when "Settings" is selected */
+  onSettings?: () => void;
+  /** Callback when "Notifications" is selected */
+  onNotifications?: () => void;
+  /** Callback when "Sign Out" is selected */
+  onSignOut?: () => void;
+}
+
+/** Derive initials from a display name (up to 2 characters). */
+const getInitials = (name: string): string => {
+  const parts = name.trim().split(/\s+/);
+  if (parts.length === 1) return parts[0].slice(0, 2).toUpperCase();
+  return (parts[0][0] + parts[parts.length - 1][0]).toUpperCase();
+};
+
+/** Deterministic gradient colour based on name string. */
+const getAvatarGradient = (name: string): string => {
+  const gradients = [
+    'from-blue-500 to-violet-600',
+    'from-teal-500 to-cyan-600',
+    'from-amber-500 to-orange-600',
+    'from-rose-500 to-pink-600',
+    'from-emerald-500 to-green-600',
+    'from-indigo-500 to-purple-600',
+  ];
+  let hash = 0;
+  for (let i = 0; i < name.length; i++) {
+    hash = (hash << 5) - hash + name.charCodeAt(i);
+    hash |= 0;
+  }
+  return gradients[Math.abs(hash) % gradients.length];
+};
+
+export const UserAvatarDropdown: React.FC<UserAvatarDropdownProps> = ({
+  displayName = 'Institutional Admin',
+  email = 'admin@anchorpoint.local',
+  role = 'Admin',
+  onSettings,
+  onNotifications,
+  onSignOut,
+}) => {
+  const [isOpen, setIsOpen] = useState(false);
+  const [copied, setCopied] = useState(false);
+  const containerRef = useRef<HTMLDivElement>(null);
+
+  const initials = getInitials(displayName);
+  const gradient = getAvatarGradient(displayName);
+
+  /* Close on outside click */
+  useEffect(() => {
+    const handleOutside = (e: MouseEvent) => {
+      if (containerRef.current && !containerRef.current.contains(e.target as Node)) {
+        setIsOpen(false);
+      }
+    };
+    if (isOpen) document.addEventListener('mousedown', handleOutside);
+    return () => document.removeEventListener('mousedown', handleOutside);
+  }, [isOpen]);
+
+  /* Close on Escape */
+  useEffect(() => {
+    const handleKey = (e: KeyboardEvent) => {
+      if (e.key === 'Escape') setIsOpen(false);
+    };
+    if (isOpen) document.addEventListener('keydown', handleKey);
+    return () => document.removeEventListener('keydown', handleKey);
+  }, [isOpen]);
+
+  const copyEmail = async () => {
+    try {
+      await navigator.clipboard.writeText(email);
+      setCopied(true);
+      setTimeout(() => setCopied(false), 2000);
+    } catch {
+      /* clipboard not available */
+    }
+  };
+
+  const handleAction = (cb?: () => void) => {
+    setIsOpen(false);
+    cb?.();
+  };
+
+  const menuItems = [
+    {
+      id: 'settings',
+      icon: Settings,
+      label: 'Account Settings',
+      description: 'Manage preferences',
+      onClick: () => handleAction(onSettings),
+    },
+    {
+      id: 'notifications',
+      icon: Bell,
+      label: 'Notifications',
+      description: 'View alerts & events',
+      onClick: () => handleAction(onNotifications),
+    },
+    {
+      id: 'kyc',
+      icon: Shield,
+      label: 'KYC / Compliance',
+      description: 'Verification status',
+      onClick: () => handleAction(),
+    },
+    {
+      id: 'help',
+      icon: HelpCircle,
+      label: 'Help & Support',
+      description: 'Docs & contact',
+      onClick: () => handleAction(),
+    },
+  ];
+
+  return (
+    <div className="relative" ref={containerRef}>
+      {/* Trigger button */}
+      <button
+        id="user-avatar-trigger"
+        onClick={() => setIsOpen((prev) => !prev)}
+        aria-haspopup="true"
+        aria-expanded={isOpen}
+        aria-controls="user-avatar-dropdown"
+        aria-label={`User menu for ${displayName}`}
+        className="flex items-center gap-2 rounded-lg border border-slate-700 bg-slate-900 px-2 py-1.5 transition-all hover:bg-slate-800 hover:border-slate-600 focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-primary/50"
+      >
+        {/* Avatar circle */}
+        <span
+          className={`flex h-8 w-8 items-center justify-center rounded-full bg-gradient-to-br ${gradient} text-xs font-bold text-white shadow-inner select-none`}
+          aria-hidden="true"
+        >
+          {initials}
+        </span>
+
+        {/* Name - hidden on small screens */}
+        <span className="hidden text-sm font-medium text-slate-200 sm:block max-w-[120px] truncate">
+          {displayName}
+        </span>
+
+        {/* Animated chevron */}
+        <motion.span
+          animate={{ rotate: isOpen ? 180 : 0 }}
+          transition={{ duration: 0.2 }}
+          className="hidden sm:block"
+          aria-hidden="true"
+        >
+          <ChevronDown size={14} className="text-slate-400" />
+        </motion.span>
+      </button>
+
+      {/* Dropdown panel */}
+      <AnimatePresence>
+        {isOpen && (
+          <motion.div
+            id="user-avatar-dropdown"
+            role="menu"
+            aria-label="User account menu"
+            initial={{ opacity: 0, y: -8, scale: 0.97 }}
+            animate={{ opacity: 1, y: 0, scale: 1 }}
+            exit={{ opacity: 0, y: -8, scale: 0.97 }}
+            transition={{ duration: 0.18, ease: 'easeOut' }}
+            className="absolute right-0 z-50 mt-2 w-72 origin-top-right rounded-xl border border-slate-700/80 bg-slate-900/95 shadow-2xl backdrop-blur-md"
+          >
+            {/* Header */}
+            <div className="flex items-center gap-3 border-b border-slate-800 p-4">
+              <span
+                className={`flex h-11 w-11 shrink-0 items-center justify-center rounded-full bg-gradient-to-br ${gradient} text-sm font-bold text-white shadow-lg select-none`}
+                aria-hidden="true"
+              >
+                {initials}
+              </span>
+              <div className="min-w-0 flex-1">
+                <p className="truncate text-sm font-semibold text-slate-100">{displayName}</p>
+                <button
+                  onClick={copyEmail}
+                  title="Copy email address"
+                  className="group mt-0.5 flex items-center gap-1 text-xs text-slate-500 transition-colors hover:text-slate-300 focus-visible:outline-none"
+                  aria-label={copied ? 'Email copied' : `Copy email: ${email}`}
+                >
+                  <span className="truncate">{email}</span>
+                  {copied ? (
+                    <Check size={11} className="shrink-0 text-emerald-400" aria-hidden="true" />
+                  ) : (
+                    <Copy
+                      size={11}
+                      className="shrink-0 opacity-0 transition-opacity group-hover:opacity-100"
+                      aria-hidden="true"
+                    />
+                  )}
+                </button>
+              </div>
+              {/* Role badge */}
+              <span className="shrink-0 rounded-full border border-primary/30 bg-primary/10 px-2 py-0.5 text-[10px] font-semibold uppercase tracking-wider text-primary">
+                {role}
+              </span>
+            </div>
+
+            {/* Menu items */}
+            <div className="p-2" role="none">
+              {menuItems.map((item) => (
+                <button
+                  key={item.id}
+                  id={`user-menu-item-${item.id}`}
+                  role="menuitem"
+                  onClick={item.onClick}
+                  className="flex w-full items-center gap-3 rounded-lg px-3 py-2.5 text-left transition-all hover:bg-slate-800/70 focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-primary/40 group"
+                >
+                  <span className="flex h-8 w-8 shrink-0 items-center justify-center rounded-md border border-slate-700 bg-slate-800 transition-colors group-hover:border-primary/30 group-hover:bg-primary/10">
+                    <item.icon
+                      size={15}
+                      className="text-slate-400 transition-colors group-hover:text-primary"
+                      aria-hidden="true"
+                    />
+                  </span>
+                  <span className="min-w-0 flex-1">
+                    <span className="block text-sm font-medium text-slate-200">{item.label}</span>
+                    <span className="block text-xs text-slate-500">{item.description}</span>
+                  </span>
+                </button>
+              ))}
+            </div>
+
+            {/* Divider + Sign out */}
+            <div className="border-t border-slate-800 p-2">
+              <button
+                id="user-menu-item-signout"
+                role="menuitem"
+                onClick={() => handleAction(onSignOut)}
+                className="flex w-full items-center gap-3 rounded-lg px-3 py-2.5 text-left transition-all hover:bg-red-500/10 focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-red-500/40 group"
+              >
+                <span className="flex h-8 w-8 shrink-0 items-center justify-center rounded-md border border-slate-700 bg-slate-800 transition-colors group-hover:border-red-500/30 group-hover:bg-red-500/10">
+                  <LogOut
+                    size={15}
+                    className="text-slate-400 transition-colors group-hover:text-red-400"
+                    aria-hidden="true"
+                  />
+                </span>
+                <span className="min-w-0 flex-1">
+                  <span className="block text-sm font-medium text-slate-200 group-hover:text-red-300 transition-colors">
+                    Sign Out
+                  </span>
+                  <span className="block text-xs text-slate-500">End your session</span>
+                </span>
+              </button>
+            </div>
+
+            {/* Footer version pill */}
+            <div className="flex justify-center border-t border-slate-800/50 py-2">
+              <span className="text-[10px] text-slate-600 select-none">AnchorPoint · v1.0.0</span>
+            </div>
+          </motion.div>
+        )}
+      </AnimatePresence>
+    </div>
+  );
+};