diff --git a/ui/src/components/ChatConversationList.tsx b/ui/src/components/ChatConversationList.tsx
new file mode 100644
index 00000000..fac9453d
--- /dev/null
+++ b/ui/src/components/ChatConversationList.tsx
@@ -0,0 +1,322 @@
+import { useCallback, useEffect, useRef, useState } from "react";
+import { MoreHorizontal, Pin, Plus, X } from "lucide-react";
+import { useChatConversations, useConversationActions } from "../hooks/useChatConversations";
+import { ScrollArea } from "@/components/ui/scroll-area";
+import { Skeleton } from "@/components/ui/skeleton";
+import { Button } from "@/components/ui/button";
+import {
+  DropdownMenu,
+  DropdownMenuContent,
+  DropdownMenuItem,
+  DropdownMenuTrigger,
+} from "@/components/ui/dropdown-menu";
+import { Tooltip, TooltipContent, TooltipTrigger } from "@/components/ui/tooltip";
+import { cn } from "../lib/utils";
+import type { ChatConversation } from "@paperclipai/shared";
+
+interface ChatConversationListProps {
+  companyId: string;
+  activeId: string | null;
+  onSelect: (id: string) => void;
+  onNew: () => void;
+  onClose: () => void;
+}
+
+function formatTimestamp(dateStr: string): string {
+  const date = new Date(dateStr);
+  const now = new Date();
+  const diffMs = now.getTime() - date.getTime();
+  const diffDays = Math.floor(diffMs / (1000 * 60 * 60 * 24));
+
+  if (diffDays === 0) {
+    return date.toLocaleTimeString([], { hour: "2-digit", minute: "2-digit" });
+  } else if (diffDays === 1) {
+    return "Yesterday";
+  } else if (diffDays < 7) {
+    return date.toLocaleDateString([], { weekday: "short" });
+  } else {
+    return date.toLocaleDateString([], { month: "short", day: "numeric" });
+  }
+}
+
+interface ConversationItemProps {
+  conversation: ChatConversation;
+  isActive: boolean;
+  onSelect: (id: string) => void;
+  actions: ReturnType<typeof useConversationActions>;
+}
+
+function ConversationItem({ conversation, isActive, onSelect, actions }: ConversationItemProps) {
+  const [isRenaming, setIsRenaming] = useState(false);
+  const [renameValue, setRenameValue] = useState(conversation.title ?? "");
+  const [confirmDelete, setConfirmDelete] = useState(false);
+  const renameInputRef = useRef<HTMLInputElement>(null);
+
+  const title = conversation.title ?? "New conversation";
+  const isPinned = conversation.pinnedAt !== null;
+  const isArchived = conversation.archivedAt !== null;
+
+  const handleRenameStart = useCallback(() => {
+    setRenameValue(conversation.title ?? "");
+    setIsRenaming(true);
+    setTimeout(() => renameInputRef.current?.focus(), 0);
+  }, [conversation.title]);
+
+  const handleRenameConfirm = useCallback(() => {
+    const trimmed = renameValue.trim();
+    if (trimmed && trimmed !== conversation.title) {
+      actions.rename.mutate({ id: conversation.id, title: trimmed });
+    }
+    setIsRenaming(false);
+  }, [renameValue, conversation.id, conversation.title, actions.rename]);
+
+  const handleRenameKeyDown = useCallback(
+    (e: React.KeyboardEvent<HTMLInputElement>) => {
+      if (e.key === "Enter") {
+        e.preventDefault();
+        handleRenameConfirm();
+      } else if (e.key === "Escape") {
+        e.preventDefault();
+        setIsRenaming(false);
+      }
+    },
+    [handleRenameConfirm],
+  );
+
+  return (
+    <div
+      className={cn(
+        "group relative flex items-center px-3 py-3 cursor-pointer min-h-[48px]",
+        "hover:bg-sidebar-accent/50 transition-colors",
+        isActive && "border-l-2 border-primary bg-sidebar-accent",
+      )}
+      onClick={() => !isRenaming && onSelect(conversation.id)}
+      onDoubleClick={() => !isRenaming && handleRenameStart()}
+      role="button"
+      tabIndex={0}
+      onKeyDown={(e) => {
+        if (e.key === "Enter" && !isRenaming) onSelect(conversation.id);
+      }}
+      aria-current={isActive ? "true" : undefined}
+    >
+      <div className="flex flex-1 min-w-0 flex-col gap-0.5">
+        <div className="flex items-center gap-1 min-w-0">
+          {isPinned && <Pin className="h-3 w-3 text-primary shrink-0" fill="currentColor" />}
+          {isRenaming ? (
+            <input
+              ref={renameInputRef}
+              value={renameValue}
+              onChange={(e) => setRenameValue(e.target.value)}
+              onBlur={handleRenameConfirm}
+              onKeyDown={handleRenameKeyDown}
+              className="flex-1 min-w-0 text-[13px] bg-transparent border-b border-primary outline-none"
+              onClick={(e) => e.stopPropagation()}
+            />
+          ) : (
+            <span className="flex-1 min-w-0 truncate text-[13px]">{title}</span>
+          )}
+          {isArchived && (
+            <span className="text-[10px] text-muted-foreground shrink-0">archived</span>
+          )}
+        </div>
+        <span className="text-xs text-muted-foreground">
+          {formatTimestamp(conversation.updatedAt)}
+        </span>
+      </div>
+
+      {!isRenaming && (
+        <div className="shrink-0 opacity-0 group-hover:opacity-100 transition-opacity ml-1">
+          {confirmDelete ? (
+            <div
+              className="flex items-center gap-1 bg-popover border border-border rounded-md px-2 py-1 shadow-md"
+              onClick={(e) => e.stopPropagation()}
+            >
+              <span className="text-xs text-muted-foreground whitespace-nowrap">
+                Delete this conversation?
+              </span>
+              <Button
+                variant="destructive"
+                size="sm"
+                className="h-6 text-xs px-2"
+                onClick={(e) => {
+                  e.stopPropagation();
+                  actions.remove.mutate(conversation.id);
+                  setConfirmDelete(false);
+                }}
+              >
+                Delete conversation
+              </Button>
+              <Button
+                variant="ghost"
+                size="sm"
+                className="h-6 text-xs px-2"
+                onClick={(e) => {
+                  e.stopPropagation();
+                  setConfirmDelete(false);
+                }}
+              >
+                Keep conversation
+              </Button>
+            </div>
+          ) : (
+            <DropdownMenu>
+              <DropdownMenuTrigger asChild>
+                <Button
+                  variant="ghost"
+                  size="icon"
+                  className="h-6 w-6"
+                  onClick={(e) => e.stopPropagation()}
+                  aria-label="Conversation actions"
+                >
+                  <MoreHorizontal className="h-3.5 w-3.5" />
+                </Button>
+              </DropdownMenuTrigger>
+              <DropdownMenuContent align="end" className="w-44" onClick={(e) => e.stopPropagation()}>
+                <DropdownMenuItem
+                  onSelect={() => handleRenameStart()}
+                >
+                  Rename conversation
+                </DropdownMenuItem>
+                <DropdownMenuItem
+                  onSelect={() =>
+                    isPinned
+                      ? actions.unpin.mutate(conversation.id)
+                      : actions.pin.mutate(conversation.id)
+                  }
+                >
+                  {isPinned ? "Unpin conversation" : "Pin conversation"}
+                </DropdownMenuItem>
+                <DropdownMenuItem
+                  onSelect={() =>
+                    isArchived
+                      ? actions.unarchive.mutate(conversation.id)
+                      : actions.archive.mutate(conversation.id)
+                  }
+                >
+                  {isArchived ? "Unarchive conversation" : "Archive conversation"}
+                </DropdownMenuItem>
+                <DropdownMenuItem
+                  className="text-destructive focus:text-destructive"
+                  onSelect={() => setConfirmDelete(true)}
+                >
+                  Delete conversation
+                </DropdownMenuItem>
+              </DropdownMenuContent>
+            </DropdownMenu>
+          )}
+        </div>
+      )}
+    </div>
+  );
+}
+
+export function ChatConversationList({
+  companyId,
+  activeId,
+  onSelect,
+  onNew,
+  onClose,
+}: ChatConversationListProps) {
+  const { data, isLoading, isFetchingNextPage, hasNextPage, fetchNextPage } =
+    useChatConversations(companyId);
+  const actions = useConversationActions();
+  const sentinelRef = useRef<HTMLDivElement>(null);
+
+  const allConversations = data?.pages.flatMap((page) => page.items) ?? [];
+
+  useEffect(() => {
+    const sentinel = sentinelRef.current;
+    if (!sentinel) return;
+
+    const observer = new IntersectionObserver(
+      (entries) => {
+        const entry = entries[0];
+        if (entry?.isIntersecting && hasNextPage && !isFetchingNextPage) {
+          fetchNextPage();
+        }
+      },
+      { threshold: 0.1 },
+    );
+
+    observer.observe(sentinel);
+    return () => observer.disconnect();
+  }, [hasNextPage, isFetchingNextPage, fetchNextPage]);
+
+  return (
+    <nav aria-label="Conversations" className="flex flex-col h-full">
+      <div className="flex items-center justify-between px-3 py-2 border-b border-border h-12 shrink-0">
+        <span className="text-base font-semibold">Chat</span>
+        <div className="flex items-center gap-1">
+          <Tooltip>
+            <TooltipTrigger asChild>
+              <Button
+                variant="ghost"
+                size="icon"
+                className="h-7 w-7"
+                onClick={onNew}
+                aria-label="New conversation"
+              >
+                <Plus className="h-4 w-4" />
+              </Button>
+            </TooltipTrigger>
+            <TooltipContent>New conversation</TooltipContent>
+          </Tooltip>
+          <Tooltip>
+            <TooltipTrigger asChild>
+              <Button
+                variant="ghost"
+                size="icon"
+                className="h-7 w-7"
+                onClick={onClose}
+                aria-label="Close chat"
+              >
+                <X className="h-4 w-4" />
+              </Button>
+            </TooltipTrigger>
+            <TooltipContent>Close chat</TooltipContent>
+          </Tooltip>
+        </div>
+      </div>
+
+      {isLoading ? (
+        <div aria-busy="true" className="flex flex-col gap-1 p-2">
+          <Skeleton className="h-12 mx-0 my-1" />
+          <Skeleton className="h-12 mx-0 my-1" />
+          <Skeleton className="h-12 mx-0 my-1" />
+        </div>
+      ) : allConversations.length === 0 ? (
+        <div className="flex flex-1 flex-col items-center justify-center p-4 text-center gap-3">
+          <p className="text-sm text-muted-foreground">No conversations yet</p>
+          <p className="text-xs text-muted-foreground">
+            Start a conversation to get help with your work.
+          </p>
+          <Button size="sm" onClick={onNew}>
+            New conversation
+          </Button>
+        </div>
+      ) : (
+        <ScrollArea className="flex-1">
+          <div role="list">
+            {allConversations.map((conversation) => (
+              <div key={conversation.id} role="listitem">
+                <ConversationItem
+                  conversation={conversation}
+                  isActive={conversation.id === activeId}
+                  onSelect={onSelect}
+                  actions={actions}
+                />
+              </div>
+            ))}
+          </div>
+          {isFetchingNextPage && (
+            <div className="flex flex-col gap-1 p-2">
+              <Skeleton className="h-12 mx-3 my-1" />
+              <Skeleton className="h-12 mx-3 my-1" />
+            </div>
+          )}
+          <div ref={sentinelRef} className="h-1" aria-hidden="true" />
+        </ScrollArea>
+      )}
+    </nav>
+  );
+}
diff --git a/ui/src/components/ChatMessageList.tsx b/ui/src/components/ChatMessageList.tsx
new file mode 100644
index 00000000..37977da6
--- /dev/null
+++ b/ui/src/components/ChatMessageList.tsx
@@ -0,0 +1,81 @@
+import { useEffect, useRef } from "react";
+import { useChatMessages } from "../hooks/useChatMessages";
+import { ChatMarkdownMessage } from "./ChatMarkdownMessage";
+import { Skeleton } from "@/components/ui/skeleton";
+import { cn } from "../lib/utils";
+
+interface ChatMessageListProps {
+  conversationId: string;
+}
+
+export function ChatMessageList({ conversationId }: ChatMessageListProps) {
+  const { data, isLoading } = useChatMessages(conversationId);
+  const bottomRef = useRef<HTMLDivElement>(null);
+
+  const allMessages = data?.pages.flatMap((page) => page.items) ?? [];
+
+  useEffect(() => {
+    if (bottomRef.current) {
+      bottomRef.current.scrollIntoView({ behavior: "smooth" });
+    }
+  }, [allMessages.length]);
+
+  if (isLoading) {
+    return (
+      <div className="p-4">
+        <Skeleton className="h-16 w-full" />
+      </div>
+    );
+  }
+
+  if (allMessages.length === 0) {
+    return (
+      <div className="flex flex-1 items-center justify-center p-4 text-center">
+        <p className="text-sm text-muted-foreground">
+          Send a message to start the conversation.
+        </p>
+      </div>
+    );
+  }
+
+  return (
+    <div
+      role="log"
+      aria-live="polite"
+      aria-label="Conversation messages"
+      className="p-4 gap-4 flex flex-col overflow-y-auto flex-1"
+    >
+      {allMessages.map((msg) => (
+        <div
+          key={msg.id}
+          className={cn(
+            "group flex flex-col gap-1",
+            msg.role === "user" ? "items-end" : "items-start",
+          )}
+        >
+          <div
+            className={cn(
+              "px-4 py-2 rounded-md text-sm",
+              msg.role === "user"
+                ? "ml-auto bg-secondary text-secondary-foreground max-w-[75%]"
+                : "max-w-[85%]",
+            )}
+          >
+            {msg.role === "user" ? (
+              <span>{msg.content}</span>
+            ) : (
+              <ChatMarkdownMessage content={msg.content} />
+            )}
+          </div>
+          <span className="text-xs text-muted-foreground opacity-0 group-hover:opacity-100 transition-opacity">
+            {new Date(msg.createdAt).toLocaleTimeString([], {
+              hour: "2-digit",
+              minute: "2-digit",
+            })}
+          </span>
+        </div>
+      ))}
+      <div ref={bottomRef} aria-hidden="true" />
+    </div>
+  );
+}
diff --git a/ui/src/components/ChatPanel.tsx b/ui/src/components/ChatPanel.tsx
new file mode 100644
index 00000000..7a5146bf
--- /dev/null
+++ b/ui/src/components/ChatPanel.tsx
@@ -0,0 +1,106 @@
+import { useCallback, useEffect } from "react";
+import { useChatPanel } from "../context/ChatPanelContext";
+import { useCompany } from "../context/CompanyContext";
+import { useCreateConversation } from "../hooks/useChatConversations";
+import { useSendMessage } from "../hooks/useChatMessages";
+import { ChatConversationList } from "./ChatConversationList";
+import { ChatMessageList } from "./ChatMessageList";
+import { ChatInput } from "./ChatInput";
+
+export function ChatPanel() {
+  const { chatOpen, setChatOpen, activeConversationId, setActiveConversationId } = useChatPanel();
+  const { selectedCompanyId } = useCompany();
+  const createConversation = useCreateConversation(selectedCompanyId);
+  const sendMessage = useSendMessage(activeConversationId);
+
+  const focusInput = useCallback(() => {
+    // Small delay to allow render to settle
+    setTimeout(() => {
+      const textarea = document.querySelector<HTMLTextAreaElement>('[aria-label="Message input"]');
+      textarea?.focus();
+    }, 50);
+  }, []);
+
+  useEffect(() => {
+    if (chatOpen) {
+      focusInput();
+    }
+  }, [chatOpen, focusInput]);
+
+  const handleNew = useCallback(async () => {
+    if (!selectedCompanyId) return;
+    try {
+      const conversation = await createConversation.mutateAsync(undefined);
+      setActiveConversationId(conversation.id);
+      focusInput();
+    } catch {
+      // Ignore errors here — handled by mutation state
+    }
+  }, [selectedCompanyId, createConversation, setActiveConversationId, focusInput]);
+
+  const handleSend = useCallback(
+    async (content: string) => {
+      if (!activeConversationId) {
+        // Create conversation first if none selected
+        if (!selectedCompanyId) return;
+        try {
+          const conversation = await createConversation.mutateAsync(undefined);
+          setActiveConversationId(conversation.id);
+          // Send after creating
+          await sendMessage.mutateAsync(content);
+        } catch {
+          // Ignore
+        }
+      } else {
+        await sendMessage.mutateAsync(content);
+      }
+    },
+    [activeConversationId, selectedCompanyId, createConversation, setActiveConversationId, sendMessage],
+  );
+
+  const handleClose = useCallback(() => {
+    setChatOpen(false);
+  }, [setChatOpen]);
+
+  return (
+    <aside
+      role="complementary"
+      aria-label="Chat"
+      className="flex-shrink-0 border-l border-border overflow-hidden transition-[width] duration-100 ease-out flex flex-col"
+      style={{ width: chatOpen ? 380 : 0 }}
+    >
+      {chatOpen && selectedCompanyId && (
+        <div className="flex flex-1 min-h-0 overflow-hidden" style={{ width: 380 }}>
+          {/* Conversation list sidebar */}
+          <div className="flex flex-col shrink-0 bg-sidebar border-r border-border overflow-hidden" style={{ width: 240 }}>
+            <ChatConversationList
+              companyId={selectedCompanyId}
+              activeId={activeConversationId}
+              onSelect={setActiveConversationId}
+              onNew={handleNew}
+              onClose={handleClose}
+            />
+          </div>
+
+          {/* Message area */}
+          <div className="flex flex-1 flex-col min-w-0 overflow-hidden">
+            {activeConversationId ? (
+              <ChatMessageList conversationId={activeConversationId} />
+            ) : (
+              <div className="flex flex-1 items-center justify-center p-4 text-center">
+                <p className="text-sm text-muted-foreground">
+                  Select a conversation or start a new one.
+                </p>
+              </div>
+            )}
+            <ChatInput
+              onSend={handleSend}
+              onClose={handleClose}
+              isSubmitting={sendMessage.isPending || createConversation.isPending}
+            />
+          </div>
+        </div>
+      )}
+    </aside>
+  );
+}
diff --git a/ui/src/components/Layout.tsx b/ui/src/components/Layout.tsx
index 6a57e5a1..b931d520 100644
--- a/ui/src/components/Layout.tsx
+++ b/ui/src/components/Layout.tsx
@@ -1,12 +1,13 @@
 import { useCallback, useEffect, useMemo, useRef, useState } from "react";
 import { useQuery } from "@tanstack/react-query";
-import { BookOpen, Moon, Settings, Sun } from "lucide-react";
+import { BookOpen, MessageSquare, Moon, Settings, Sun } from "lucide-react";
 import { Link, Outlet, useLocation, useNavigate, useParams } from "@/lib/router";
 import { CompanyRail } from "./CompanyRail";
 import { Sidebar } from "./Sidebar";
 import { InstanceSidebar } from "./InstanceSidebar";
 import { BreadcrumbBar } from "./BreadcrumbBar";
 import { PropertiesPanel } from "./PropertiesPanel";
+import { ChatPanel } from "./ChatPanel";
 import { CommandPalette } from "./CommandPalette";
 import { NewIssueDialog } from "./NewIssueDialog";
 import { NewProjectDialog } from "./NewProjectDialog";
@@ -18,6 +19,7 @@ import { WorktreeBanner } from "./WorktreeBanner";
 import { DevRestartBanner } from "./DevRestartBanner";
 import { useDialog } from "../context/DialogContext";
 import { usePanel } from "../context/PanelContext";
+import { useChatPanel } from "../context/ChatPanelContext";
 import { useCompany } from "../context/CompanyContext";
 import { useSidebar } from "../context/SidebarContext";
 import { useTheme, THEME_META } from "../context/ThemeContext";
@@ -49,7 +51,8 @@ function readRememberedInstanceSettingsPath(): string {
 export function Layout() {
   const { sidebarOpen, setSidebarOpen, toggleSidebar, isMobile } = useSidebar();
   const { openNewIssue, openOnboarding } = useDialog();
-  const { togglePanelVisible } = usePanel();
+  const { togglePanelVisible, setPanelVisible } = usePanel();
+  const { chatOpen, toggleChat } = useChatPanel();
   const {
     companies,
     loading: companiesLoading,
@@ -144,6 +147,13 @@ export function Layout() {
 
   const togglePanel = togglePanelVisible;
 
+  // Close PropertiesPanel when chat opens to avoid competing for space
+  useEffect(() => {
+    if (chatOpen) {
+      setPanelVisible(false);
+    }
+  }, [chatOpen, setPanelVisible]);
+
   useCompanyPageMemory();
 
   useKeyboardShortcuts({
@@ -400,6 +410,21 @@ export function Layout() {
                 >
                   {isDarkTheme ? <Sun className="h-4 w-4" /> : <Moon className="h-4 w-4" />}
                 </Button>
+                <Tooltip>
+                  <TooltipTrigger asChild>
+                    <Button
+                      type="button"
+                      variant="ghost"
+                      size="icon-sm"
+                      className="text-muted-foreground shrink-0"
+                      onClick={toggleChat}
+                      aria-label={chatOpen ? "Close chat" : "Open chat"}
+                    >
+                      <MessageSquare className="h-4 w-4" />
+                    </Button>
+                  </TooltipTrigger>
+                  <TooltipContent>{chatOpen ? "Close chat" : "Open chat"}</TooltipContent>
+                </Tooltip>
               </div>
             </div>
           </div>
@@ -432,6 +457,7 @@ export function Layout() {
               )}
             </main>
             <PropertiesPanel />
+            <ChatPanel />
           </div>
         </div>
       </div>