diff --git a/TODO.md b/TODO.md
new file mode 100644
index 00000000..c481e46e
--- /dev/null
+++ b/TODO.md
@@ -0,0 +1,8 @@
+# Task Tracker
+
+- [x] Implement scoped 500ms trailing debounce in `src/app/hooks/useDashboardWidgets.tsx` to rate-limit localStorage writes.
+- [ ] (Optional) Prevent initial-load persistence writes in `src/app/components/dashboard/DashboardGrid.tsx` (skip first save after mount).
+- [ ] Run tests/lint if applicable.
+- [ ] Manual verification: Chrome DevTools Performance panel during drag; confirm no long tasks from localStorage I/O.
+
+
diff --git a/src/app/components/dashboard/DashboardGrid.tsx b/src/app/components/dashboard/DashboardGrid.tsx
index 1c97fba6..fe9b6924 100644
--- a/src/app/components/dashboard/DashboardGrid.tsx
+++ b/src/app/components/dashboard/DashboardGrid.tsx
@@ -1,6 +1,6 @@
 'use client';
 
-import React, { useState, useEffect } from 'react';
+import React, { useState, useEffect, useRef } from 'react';
 import { motion, AnimatePresence } from 'framer-motion';
 import {
   DndContext,
@@ -104,6 +104,14 @@ export const DashboardGrid: React.FC<DashboardGridProps> = ({
   const [activeTab, setActiveTab] = useState('overview');
   const [dateRange] = useState('Last 30 days');
 
+  const saveTimerRef = useRef<ReturnType<typeof setTimeout> | null>(null);
+
+  useEffect(() => {
+    return () => {
+      if (saveTimerRef.current) clearTimeout(saveTimerRef.current);
+    };
+  }, []);
+
   const sensors = useSensors(
     useSensor(PointerSensor),
     useSensor(KeyboardSensor, {
@@ -111,7 +119,7 @@ export const DashboardGrid: React.FC<DashboardGridProps> = ({
     }),
   );
 
-  const { saveWidgetLayout, loadWidgetLayout } = useDashboardWidgets();
+  const { loadWidgetLayout } = useDashboardWidgets();
 
   // Load saved layout on mount
   useEffect(() => {
@@ -129,18 +137,32 @@ export const DashboardGrid: React.FC<DashboardGridProps> = ({
     // eslint-disable-next-line react-hooks/exhaustive-deps
   }, []); // Only run on mount
 
-  // Save layout when widgets change (but not on initial load)
+  // Notify parent of widget changes immediately (no I/O)
   useEffect(() => {
-    if (widgets.length === 0) return; // Don't save empty state
+    if (widgets.length === 0) return;
+    onWidgetChange?.(widgets);
+  }, [widgets, onWidgetChange]);
 
-    try {
-      saveWidgetLayout(widgets);
-      onWidgetChange?.(widgets);
-    } catch (error) {
-      console.error('Error saving widget layout', error);
-    }
-    // eslint-disable-next-line react-hooks/exhaustive-deps
-  }, [widgets]); // Only depend on widgets, not the functions
+  // Persist layout to localStorage at most once per 500ms via debounce
+  useEffect(() => {
+    if (widgets.length === 0) return;
+
+    if (saveTimerRef.current) clearTimeout(saveTimerRef.current);
+
+    saveTimerRef.current = setTimeout(() => {
+      try {
+        localStorage.setItem('dashboard-widgets', JSON.stringify(widgets));
+      } catch (error) {
+        console.error('Error saving widget layout', error);
+      } finally {
+        saveTimerRef.current = null;
+      }
+    }, 500);
+
+    return () => {
+      if (saveTimerRef.current) clearTimeout(saveTimerRef.current);
+    };
+  }, [widgets]);
 
   const handleDragEnd = (event: DragEndEvent) => {
     const { active, over } = event;
diff --git a/src/app/hooks/useDashboardWidgets.tsx b/src/app/hooks/useDashboardWidgets.tsx
index c0a37905..c65563b4 100644
--- a/src/app/hooks/useDashboardWidgets.tsx
+++ b/src/app/hooks/useDashboardWidgets.tsx
@@ -1,4 +1,4 @@
-import { useState, useEffect, useCallback } from 'react';
+import { useState, useEffect, useCallback, useRef } from 'react';
 
 interface Widget {
   id: string;
@@ -27,12 +27,37 @@ export const useDashboardWidgets = () => {
     return [];
   }, []);
 
-  // Save widget layout to localStorage
+  const saveTimerRef = useRef<ReturnType<typeof setTimeout> | null>(null);
+  const pendingWidgetsRef = useRef<Widget[] | null>(null);
+
+  useEffect(() => {
+    return () => {
+      if (saveTimerRef.current) clearTimeout(saveTimerRef.current);
+    };
+  }, []);
+
   const saveWidgetLayout = useCallback((widgets: Widget[]) => {
+    // Trailing debounce to avoid blocking the main thread during drag-and-drop.
+    // localStorage writes will happen at most once per 500ms, and the latest
+    // layout will be persisted within ~500ms after the last change.
     try {
-      localStorage.setItem('dashboard-widgets', JSON.stringify(widgets));
+      pendingWidgetsRef.current = widgets;
+
+      if (saveTimerRef.current) clearTimeout(saveTimerRef.current);
+
+      saveTimerRef.current = setTimeout(() => {
+        try {
+          const pending = pendingWidgetsRef.current;
+          if (!pending) return;
+          localStorage.setItem('dashboard-widgets', JSON.stringify(pending));
+        } catch (error) {
+          console.error('Failed to save widget layout:', error);
+        } finally {
+          saveTimerRef.current = null;
+        }
+      }, 500);
     } catch (error) {
-      console.error('Failed to save widget layout:', error);
+      console.error('Failed to schedule dashboard layout save:', error);
     }
   }, []);