diff --git a/components/editor/access-denied.tsx b/components/editor/access-denied.tsx
index 726d0fb..c643b67 100644
--- a/components/editor/access-denied.tsx
+++ b/components/editor/access-denied.tsx
@@ -9,9 +9,9 @@ import Link from "next/link";
  */
 export function AccessDenied() {
   return (
-    <div className="flex h-full w-full items-center justify-center px-6">
+    <div className="absolute inset-0 flex items-center justify-center px-6">
       <div className="flex max-w-md flex-col items-center gap-4 text-center">
-        <div className="flex h-16 w-16 items-center justify-center rounded-full bg-bg-elevated">
+        <div className="flex h-16 w-16 items-center justify-center rounded-full bg-bg-surface/80">
           <Lock className="h-8 w-8 text-text-muted" />
         </div>
         <h1 className="text-xl font-semibold tracking-tight text-text-primary">
diff --git a/components/editor/canvas.tsx b/components/editor/canvas.tsx
index 0e98dfd..4bbbfd8 100644
--- a/components/editor/canvas.tsx
+++ b/components/editor/canvas.tsx
@@ -234,7 +234,7 @@ function CollaborativeFlow() {
   return (
     <div
       ref={wrapperRef}
-      className="relative h-full w-full"
+      className="absolute inset-0"
       onDragOver={handleDragOver}
       onDrop={handleDrop}
     >
@@ -249,7 +249,7 @@ function CollaborativeFlow() {
         fitView
         connectionMode={ConnectionMode.Loose}
         proOptions={{ hideAttribution: true }}
-        className="bg-bg-base"
+        className="!bg-transparent"
       >
         <Background
           variant={BackgroundVariant.Dots}
@@ -260,7 +260,7 @@ function CollaborativeFlow() {
         <MiniMap
           pannable
           zoomable
-          className="!bg-bg-surface !border !border-border-default !rounded-xl"
+          className="!bg-bg-surface/80 !border !border-border-default !rounded-xl !shadow-lg"
           nodeColor="var(--text-muted)"
           maskColor="rgba(8, 8, 9, 0.7)"
         />
diff --git a/components/editor/workspace-shell.tsx b/components/editor/workspace-shell.tsx
index f7eafa9..1f142e8 100644
--- a/components/editor/workspace-shell.tsx
+++ b/components/editor/workspace-shell.tsx
@@ -2,7 +2,7 @@
 
 import { useState } from "react";
 import { UserButton } from "@clerk/nextjs";
-import { PanelLeftClose, PanelLeftOpen, Share2, MessageSquare, X } from "lucide-react";
+import { PanelLeftClose, PanelLeftOpen, Share2, X, Network, Sparkles, Bot } from "lucide-react";
 
 import { Button } from "@/components/ui/button";
 import { ScrollArea } from "@/components/ui/scroll-area";
@@ -55,7 +55,7 @@ export function WorkspaceShell({
           onToggleSidebar={() => setIsSidebarOpen((open) => !open)}
           onToggleAiSidebar={() => setIsAiSidebarOpen((open) => !open)}
           aiSidebarOpen={isAiSidebarOpen}
-          onShareClick={() => {}}
+          onShareClick={() => { }}
         />
         <main className="relative flex-1 overflow-hidden">
           <ProjectSidebar
@@ -86,6 +86,9 @@ export function WorkspaceShell({
         onShareClick={shareDialog.onOpenChange}
       />
       <main className="relative flex-1 overflow-hidden">
+        <div className="absolute inset-0">
+          <Canvas roomId={currentRoomId} />
+        </div>
         <ProjectSidebar
           isOpen={isSidebarOpen}
           onClose={() => setIsSidebarOpen(false)}
@@ -93,7 +96,6 @@ export function WorkspaceShell({
           sharedProjects={sharedProjects}
           currentRoomId={currentRoomId}
         />
-        <Canvas roomId={currentRoomId} />
         <AiSidebar
           isOpen={isAiSidebarOpen}
           onClose={() => setIsAiSidebarOpen(false)}
@@ -153,13 +155,16 @@ function EditorNavbar({
             <PanelLeftOpen className="h-5 w-5" />
           )}
         </button>
-        {projectName ? (
-          <span className="text-sm font-medium text-text-primary">
-            {projectName}
-          </span>
-        ) : (
-          <span className="text-sm font-medium text-text-muted">Editor</span>
-        )}
+        <div className="flex flex-col">
+          {projectName ? (
+            <span className="text-sm font-semibold text-text-primary">
+              {projectName}
+            </span>
+          ) : (
+            <span className="text-sm font-semibold text-text-primary">Ghost Room</span>
+          )}
+          <span className="text-[11px] font-medium text-text-faint">Workspace</span>
+        </div>
       </div>
       <div className="flex items-center gap-2">
         <Button
@@ -169,7 +174,7 @@ function EditorNavbar({
           className="gap-2"
           onClick={() => onShareClick(true)}
         >
-          <Share2 className="h-4 w-4" />
+          <Network className="h-4 w-4" />
           Share
         </Button>
         <Button
@@ -177,23 +182,22 @@ function EditorNavbar({
           variant="ghost"
           size="sm"
           className={cn(
-            "gap-2",
-            aiSidebarOpen && "bg-bg-elevated text-text-primary",
+            "gap-2 bg-accent-primary/10 text-accent-primary hover:bg-accent-primary/20",
+            aiSidebarOpen && "bg-accent-primary/20",
           )}
           onClick={onToggleAiSidebar}
         >
-          <MessageSquare className="h-4 w-4" />
-          AI Chat
+          <Sparkles className="h-4 w-4" />
+          AI
         </Button>
-      </div>
-      <div className="flex items-center">
         <UserButton
           appearance={{
             elements: {
               userButtonBox: "h-9 w-9",
               userButtonTrigger:
-                "h-9 w-9 rounded-xl ring-1 ring-border-default hover:ring-border-subtle transition",
-              userButtonAvatarBox: "h-9 w-9 rounded-xl",
+                "h-9 w-9 rounded-full ring-1 ring-border-default hover:ring-border-subtle transition-all overflow-hidden focus:outline-none focus:ring-2 focus:ring-accent-primary/50",
+              userButtonAvatarBox: "h-full w-full rounded-full",
+              userButtonAvatarImage: "h-full w-full object-cover",
             },
           }}
         />
@@ -236,8 +240,8 @@ function ProjectSidebar({
       <aside
         aria-hidden={!isOpen}
         className={cn(
-          "pointer-events-none fixed left-0 top-0 z-40 flex h-full w-80 flex-col border-r border-border-default bg-bg-surface/95 shadow-2xl backdrop-blur-md transition-transform duration-300 ease-in-out",
-          isOpen ? "translate-x-0 pointer-events-auto" : "-translate-x-full",
+          "pointer-events-none fixed left-0 top-14 z-40 flex h-[calc(100vh-3.5rem)] w-80 flex-col border-r border-border-default bg-bg-surface/95 shadow-2xl backdrop-blur-md transition-transform duration-300 ease-in-out",
+          isOpen ? "translate-x-0 pointer-events-auto" : "-translate-x-[101%]",
         )}
       >
         <div className="flex h-14 shrink-0 items-center justify-between border-b border-border-default px-4">
@@ -298,7 +302,7 @@ function ProjectSidebar({
             className="w-full"
             size="default"
             // Create project not wired yet
-            onClick={() => {}}
+            onClick={() => { }}
           >
             <Share2 className="h-4 w-4" />
             New Project
@@ -373,7 +377,10 @@ interface AiSidebarProps {
 }
 
 /**
- * Right sidebar placeholder for future AI chat.
+ * Right sidebar for the AI Copilot. The toggle is wired (the AI button
+ * in the navbar controls visibility), but the actual chat surface and
+ * generation are intentionally out of scope here — this panel currently
+ * shows the placeholder status and the future hooks that will attach.
  */
 function AiSidebar({ isOpen, onClose }: AiSidebarProps) {
   return (
@@ -395,23 +402,65 @@ function AiSidebar({ isOpen, onClose }: AiSidebarProps) {
       <aside
         aria-hidden={!isOpen}
         className={cn(
-          "pointer-events-none fixed right-0 top-0 z-40 flex h-full w-80 flex-col border-l border-border-default bg-bg-surface/95 shadow-2xl backdrop-blur-md transition-transform duration-300 ease-in-out",
+          "pointer-events-none fixed right-0 top-14 z-40 flex h-[calc(100vh-3.5rem)] w-80 flex-col border-l border-border-default bg-bg-surface/95 shadow-2xl backdrop-blur-md transition-transform duration-300 ease-in-out",
           isOpen ? "translate-x-0 pointer-events-auto" : "translate-x-full",
         )}
       >
+        {/* Header */}
         <div className="flex h-14 shrink-0 items-center justify-between border-b border-border-default px-4">
-          <h2 className="text-sm font-semibold text-text-primary">AI Chat</h2>
-          <button
-            type="button"
-            onClick={onClose}
-            aria-label="Close AI chat"
-            className="inline-flex h-8 w-8 items-center justify-center rounded-xl text-text-muted transition-colors hover:bg-bg-elevated hover:text-text-primary focus-visible:outline-none focus-visible:ring-1 focus-visible:ring-border-subtle"
-          >
-            <X className="h-4 w-4" />
-          </button>
+          <div className="flex items-center gap-2">
+            <h2 className="text-sm font-semibold text-text-primary">
+              AI Copilot
+            </h2>
+          </div>
+          <div className="flex items-center gap-2">
+            <Sparkles className="h-4 w-4 text-accent-ai-text" />
+            <button
+              type="button"
+              onClick={onClose}
+              aria-label="Close AI chat"
+              className="inline-flex h-8 w-8 items-center justify-center rounded-xl text-text-muted transition-colors hover:bg-bg-elevated hover:text-text-primary focus-visible:outline-none focus-visible:ring-1 focus-visible:ring-border-subtle"
+            >
+              <X className="h-4 w-4" />
+            </button>
+          </div>
         </div>
-        <div className="flex flex-1 items-center justify-center">
-          <p className="text-sm text-text-muted">AI chat coming soon</p>
+
+        {/* Subtitle */}
+        <div className="border-b border-border-default px-4 pb-3 pt-2">
+          <p className="text-xs text-text-muted">Placeholder panel</p>
+        </div>
+
+        {/* Body */}
+        <div className="flex flex-1 flex-col gap-4 overflow-y-auto p-4">
+          {/* Status card */}
+          <div className="rounded-2xl border border-border-default bg-bg-elevated p-4">
+            <div className="flex items-start gap-3">
+              <div className="flex h-8 w-8 shrink-0 items-center justify-center rounded-xl bg-bg-subtle">
+                <Bot className="h-4 w-4 text-accent-ai-text" />
+              </div>
+              <div className="flex flex-col gap-1">
+                <h3 className="text-sm font-semibold text-text-primary">
+                  Chat surface pending
+                </h3>
+                <p className="text-xs leading-relaxed text-text-muted">
+                  The toggle is wired. Messaging and generation are
+                  intentionally out of scope here.
+                </p>
+              </div>
+            </div>
+          </div>
+
+          {/* Future hooks card */}
+          <div className="rounded-2xl border border-dashed border-border-default bg-bg-elevated/50 p-4">
+            <h3 className="text-[11px] font-semibold uppercase tracking-wider text-text-faint">
+              Future Hooks
+            </h3>
+            <p className="mt-2 text-xs leading-relaxed text-text-muted">
+              Prompt composer, run status, and architecture guidance will
+              attach to this sidebar.
+            </p>
+          </div>
         </div>
       </aside>
     </>
diff --git a/context/current-issues-liveblocks-canvas.md b/context/current-issues-liveblocks-canvas.md
index 5543f35..846126f 100644
--- a/context/current-issues-liveblocks-canvas.md
+++ b/context/current-issues-liveblocks-canvas.md
@@ -1,58 +1,30 @@
-Review the editor canvas implementation and fix the visual issues. The canvas currently looks like it's floating above the background inside a border box, instead of feeling like a real design canvas. Check `/context/screenshots/image.png` for the current broken state.
+Read the current canvas component code in `components/` and Rewier The UI eliments
 
-Read the current canvas component code in `components/editor`
+image location `img/image.png`
 
-Issues to look for and document:
+image description : 
+```
+Top Navigation Bar
+Left side: Displays the name of the Workspace.
 
-DRAG AND DROP ISSUES:
+move to Right side: Includes a "Share" button, a highlighted "AI" button, fix user profile avatar fill the circle correctly.
 
- - Canvas nodes from the node panel cannot be dragged and dropped onto the canvas. Investigate and fix the full drag-and-drop pipeline:
-  - Confirm that draggable nodes in the node panel have the correct draggable attribute and onDragStart handler that sets the node type in dataTransfer
-  - Confirm that the canvas has onDragOver (with preventDefault to allow dropping) and onDrop handlers wired up correctly
-  - Ensure the drop handler reads the node type from dataTransfer, calculates the correct canvas coordinates accounting for pan offset and zoom scale, and creates a new node at the dropped position
-  - Check that no parent element is intercepting or blocking the drag events before they reach the canvas
+Left Panel (Projects)
+Tabs: Features two main views at the top: "My Projects" (currently selected) and "Shared".
 
-CANVAS VISUAL ISSUES:
+Project List: Shows one active project listed under the current selection: "Liveblocks Live Room" with a cyan indicator dot.
 
-- Box shadow or elevation styles making the canvas appear to float
-- Border or border-radius giving it a "card" appearance instead of a canvas feel
-- Background color mismatch between canvas and its container
-- Missing or incorrect dotted background pattern on the canvas
-- z-index or positioning (absolute/relative) causing the floating effect
-- Padding/margin around the canvas creating separation from the background
-- Any wrapper div styles (like rounded corners, shadows, or elevated backgrounds) treating the canvas as a UI card
+Bottom Action: A bright cyan button labeled "+ New Project" sits at the bottom of the panel next to a profile placeholder icon labeled "N".
 
-SIDEBAR ISSUES:
+Center Canvas & Bottom Toolbar
+The large central area is a black workspace featuring a subtle dot grid pattern.
 
-- The left and right sidebars should float OVER the canvas, not push or shrink it
-- Sidebars must use position: fixed or position: absolute with a higher z-index so the canvas extends fully behind them
-- The canvas background (dotted pattern) should be visible edge-to-edge underneath both sidebars
-- Sidebars should have a semi-transparent or solid background with a subtle shadow so they feel elevated above the canvas, not embedded in the layout
-- The left sidebar is not fully hiding when toggled off
+At the bottom center, there is a floating horizontal toolbar containing various shape icons (such as a rectangle, diamond, circle, line tool, cylinder, and hexagon) along with a cursor hand icon.
 
-— it is partially visible or peeking out instead of sliding completely off-screen. When closed, the sidebar should translate fully outside the viewport with no visible remnant. Check for incorrect transform: translateX values, insufficient negative offset, overflow issues on the parent container, or missing overflow: hidden that is causing the sidebar to remain partially visible during or after the close transition.
+Right Panel (AI Copilot)
+Header: Labeled "AI Copilot" with a "Placeholder panel" subtitle and a small sparkles icon.
 
-TOPBAR ISSUES:
-
-### Left Section:
-
-- A wireframe-style icon (resembling a document or sidebar layout) on the far left.
-- The main title text: "Ghost Room".
-- A smaller, muted subtitle below it reading "Workspace".
-
-### Right Section:
- 
-- A "Share" button containing a node-network icon.
-- An "AI" button featuring a star/sparkle icon.
-- A circular user profile avatar image on the far right.
-
-
-## After documenting all issues fix all of the above so that:
-
-1. The canvas has a dotted background pattern filling the full viewport naturally
-2. The canvas feels flush with the surrounding background — no floating, no card effect
-3. Box-shadow, excessive borders, and elevated styling are removed from the canvas
-4. The canvas looks and feels like an infinite design canvas (similar to Figma or Excalidraw)
-5. Both sidebars float over the canvas and are fully hidden when toggled off
-6. Nodes can be dragged from the node panel and dropped onto the canvas correctly
+Status Card: A box in the upper section states "Chat surface pending" with a description explaining: "The toggle is wired. Messaging and generation are intentionally out of scope here."
 
+Future Hooks Section: A lower box titled "FUTURE HOOKS" notes: "Prompt composer, run status, and architecture guidance will attach to this sidebar."
+```
diff --git a/context/progress-tracker.md b/context/progress-tracker.md
index 5578a05..9d9dbe0 100644
--- a/context/progress-tracker.md
+++ b/context/progress-tracker.md
@@ -4,7 +4,7 @@ Update this file whenever the current phase, active feature, or implementation s
 
 ## Current Phase
 
-- Feature 11 — TBD
+- Feature 12 — (compleated)
 
 ## Current Goal