diff --git a/ui/goose2/src/app/AppShell.tsx b/ui/goose2/src/app/AppShell.tsx
index cc7ac43465..551d04e6c4 100644
--- a/ui/goose2/src/app/AppShell.tsx
+++ b/ui/goose2/src/app/AppShell.tsx
@@ -47,6 +47,7 @@ import { toChatSkillDraft } from "@/features/skills/lib/skillChatPrompt";
 import { OnboardingFlow } from "@/features/onboarding/ui/OnboardingFlow";
 import { useOnboardingGate } from "@/features/onboarding/hooks/useOnboardingGate";
 import { Spinner } from "@/shared/ui/spinner";
+import { SIDE_PANEL_DEFAULT_WIDTH } from "@/shared/constants/panels";
 
 export type AppView =
   | "home"
@@ -57,8 +58,10 @@ export type AppView =
   | "projects"
   | "session-history";
 
-const SIDEBAR_DEFAULT_WIDTH = 240;
-const SIDEBAR_MIN_WIDTH = 180;
+const SIDEBAR_OUTER_GUTTER_WIDTH = 12;
+const SIDEBAR_RESIZE_HANDLE_WIDTH = 12;
+const SIDEBAR_DEFAULT_WIDTH = SIDE_PANEL_DEFAULT_WIDTH;
+const SIDEBAR_MIN_WIDTH = 220;
 const SIDEBAR_MAX_WIDTH = 380;
 const SIDEBAR_SNAP_COLLAPSE_THRESHOLD = 100;
 const SIDEBAR_COLLAPSED_WIDTH = 48;
@@ -818,8 +821,8 @@ export function AppShell({ children }: { children?: React.ReactNode }) {
           className="flex-shrink-0 h-full py-3 pl-3"
           style={{
             width: sidebarCollapsed
-              ? SIDEBAR_COLLAPSED_WIDTH + 12
-              : sidebarWidth + 12,
+              ? SIDEBAR_COLLAPSED_WIDTH + SIDEBAR_OUTER_GUTTER_WIDTH
+              : sidebarWidth + SIDEBAR_OUTER_GUTTER_WIDTH,
             transition: isResizing ? "none" : "width 200ms ease-out",
           }}
         >
@@ -855,7 +858,8 @@ export function AppShell({ children }: { children?: React.ReactNode }) {
         <div
           onMouseDown={handleResizeStart}
           onDoubleClick={handleResizeDoubleClick}
-          className="flex-shrink-0 w-4 h-full cursor-col-resize group flex items-center justify-center"
+          className="flex-shrink-0 h-full cursor-col-resize group flex items-center justify-center"
+          style={{ width: SIDEBAR_RESIZE_HANDLE_WIDTH }}
         >
           <div className="w-px h-8 rounded-full bg-transparent group-hover:bg-border transition-colors" />
         </div>
diff --git a/ui/goose2/src/features/chat/ui/ChatContextPanel.tsx b/ui/goose2/src/features/chat/ui/ChatContextPanel.tsx
index 5d94d12b89..043a58eb60 100644
--- a/ui/goose2/src/features/chat/ui/ChatContextPanel.tsx
+++ b/ui/goose2/src/features/chat/ui/ChatContextPanel.tsx
@@ -3,13 +3,15 @@ import {
   IconLayoutSidebarRightFilled,
 } from "@tabler/icons-react";
 import { AnimatePresence, motion, useReducedMotion } from "motion/react";
-import { useEffect, useState } from "react";
+import { useEffect, useState, type CSSProperties } from "react";
 import { Button } from "@/shared/ui/button";
 import { cn } from "@/shared/lib/cn";
+import { SIDE_PANEL_DEFAULT_WIDTH } from "@/shared/constants/panels";
 import { ContextPanel } from "./ContextPanel";
 
 const CP_PAD = 12;
-const CP_TOTAL_W = 340 + CP_PAD * 2;
+const CP_PANEL_W = SIDE_PANEL_DEFAULT_WIDTH;
+const CP_TOTAL_W = CP_PANEL_W + CP_PAD * 2;
 const CP_TOGGLE_RIGHT = CP_PAD + 12;
 const CP_TOGGLE_TOP = CP_PAD + 10;
 const CP_FADE_S = 0.15;
@@ -73,12 +75,14 @@ export function ChatContextPanel({
               className={cn(
                 "flex",
                 isCompactViewport
-                  ? "absolute bottom-3 right-3 top-12 z-10 w-[min(340px,calc(100%-1.5rem))]"
+                  ? "absolute bottom-3 right-3 top-12 z-10 w-[min(var(--context-panel-width),calc(100%-1.5rem))]"
                   : "h-full",
               )}
               style={
                 isCompactViewport
-                  ? undefined
+                  ? ({
+                      "--context-panel-width": `${CP_PANEL_W}px`,
+                    } as CSSProperties)
                   : {
                       width: CP_TOTAL_W,
                       padding: CP_PAD,
diff --git a/ui/goose2/src/features/chat/ui/ContextPanel.tsx b/ui/goose2/src/features/chat/ui/ContextPanel.tsx
index bff41aa824..1d60d671ea 100644
--- a/ui/goose2/src/features/chat/ui/ContextPanel.tsx
+++ b/ui/goose2/src/features/chat/ui/ContextPanel.tsx
@@ -1,4 +1,4 @@
-import { useCallback, useState } from "react";
+import { useCallback, useEffect, useState } from "react";
 import { useTranslation } from "react-i18next";
 import { FilesList } from "./FilesList";
 import { useGitState } from "@/shared/hooks/useGitState";
@@ -29,6 +29,35 @@ interface ContextPanelProps {
 }
 
 type ContextPanelTab = "details" | "files";
+type ContextPanelSection = "workspace" | "changes" | "artifacts";
+type ContextPanelSectionVisibility = Record<ContextPanelSection, boolean>;
+
+const SECTION_VISIBILITY_STORAGE_KEY = "goose:context-panel:section-visibility";
+
+function getStoredSectionVisibility(): ContextPanelSectionVisibility {
+  const defaults = { workspace: true, changes: true, artifacts: true };
+  if (typeof window === "undefined") return defaults;
+  try {
+    const stored = window.localStorage.getItem(SECTION_VISIBILITY_STORAGE_KEY);
+    if (!stored) return defaults;
+    const parsed = JSON.parse(stored);
+    if (!parsed || typeof parsed !== "object") return defaults;
+    return {
+      workspace:
+        typeof parsed.workspace === "boolean"
+          ? parsed.workspace
+          : defaults.workspace,
+      changes:
+        typeof parsed.changes === "boolean" ? parsed.changes : defaults.changes,
+      artifacts:
+        typeof parsed.artifacts === "boolean"
+          ? parsed.artifacts
+          : defaults.artifacts,
+    };
+  } catch {
+    return defaults;
+  }
+}
 
 export function ContextPanel({
   sessionId,
@@ -38,6 +67,9 @@ export function ContextPanel({
 }: ContextPanelProps) {
   const { t } = useTranslation("chat");
   const [activeTab, setActiveTab] = useState<ContextPanelTab>("details");
+  const [sectionVisibility, setSectionVisibility] = useState(
+    getStoredSectionVisibility,
+  );
   const primaryWorkspaceRoot = projectWorkingDirs[0] ?? null;
 
   const activeContext = useChatSessionStore(
@@ -157,13 +189,31 @@ export function ContextPanel({
     void refetchAll();
   }, [refetchAll]);
 
+  useEffect(() => {
+    try {
+      window.localStorage.setItem(
+        SECTION_VISIBILITY_STORAGE_KEY,
+        JSON.stringify(sectionVisibility),
+      );
+    } catch {
+      // localStorage may be unavailable
+    }
+  }, [sectionVisibility]);
+
+  const toggleSection = useCallback((section: ContextPanelSection) => {
+    setSectionVisibility((prev) => ({
+      ...prev,
+      [section]: !prev[section],
+    }));
+  }, []);
+
   return (
     <Tabs
       value={activeTab}
       onValueChange={(value) => setActiveTab(value as ContextPanelTab)}
-      className="flex h-full min-w-0 flex-1 flex-col"
+      className="flex h-full min-w-0 flex-1 flex-col gap-0"
     >
-      <div className="shrink-0 border-b border-border px-3 pb-2 pt-2.5">
+      <div className="shrink-0 border-b border-border px-4 pb-2 pt-2.5">
         <TabsList variant="buttons">
           <TabsTrigger value="details" variant="buttons">
             {t("contextPanel.tabs.details")}
@@ -175,7 +225,7 @@ export function ContextPanel({
       </div>
 
       <TabsContent value="details" className="flex-1 overflow-y-auto">
-        <div className="space-y-2.5 px-3 pb-3 pt-2">
+        <div className="pb-3">
           <WorkspaceWidget
             projectName={projectName}
             projectColor={projectColor}
@@ -194,6 +244,8 @@ export function ContextPanel({
             onCreateBranch={handleCreateBranch}
             onCreateWorktree={handleCreateWorktree}
             onRefresh={handleRefresh}
+            isOpen={sectionVisibility.workspace}
+            onToggleOpen={() => toggleSection("workspace")}
           />
           <ChangesWidget
             files={changedFiles}
@@ -201,8 +253,13 @@ export function ContextPanel({
             currentBranch={gitState?.currentBranch ?? null}
             repoPath={gitTargetPath ?? ""}
             onOpenFile={handleOpenChangedFile}
+            isOpen={sectionVisibility.changes}
+            onToggleOpen={() => toggleSection("changes")}
+          />
+          <ArtifactsWidget
+            isOpen={sectionVisibility.artifacts}
+            onToggleOpen={() => toggleSection("artifacts")}
           />
-          <ArtifactsWidget />
         </div>
       </TabsContent>
 
diff --git a/ui/goose2/src/features/chat/ui/__tests__/ContextPanel.test.tsx b/ui/goose2/src/features/chat/ui/__tests__/ContextPanel.test.tsx
index 89747e53be..df8c6063d9 100644
--- a/ui/goose2/src/features/chat/ui/__tests__/ContextPanel.test.tsx
+++ b/ui/goose2/src/features/chat/ui/__tests__/ContextPanel.test.tsx
@@ -74,6 +74,7 @@ describe("ContextPanel", () => {
 
   beforeEach(() => {
     vi.clearAllMocks();
+    window.localStorage.clear();
     mockRefetch.mockResolvedValue(undefined);
     mockRefetchFiles.mockResolvedValue(undefined);
     mockListDirectoryEntries.mockResolvedValue([]);
@@ -143,6 +144,24 @@ describe("ContextPanel", () => {
     expect(screen.getByText("goose2")).toBeInTheDocument();
   });
 
+  it("collapses and expands context panel sections", async () => {
+    const user = userEvent.setup();
+
+    renderContextPanel({
+      sessionId: "test-session-collapse",
+      projectName: "Desktop UX",
+      projectColor: "#22c55e",
+    });
+
+    await user.click(screen.getByRole("button", { name: /workspace/i }));
+
+    expect(screen.queryByText("Desktop UX")).not.toBeInTheDocument();
+
+    await user.click(screen.getByRole("button", { name: /workspace/i }));
+
+    expect(screen.getByText("Desktop UX")).toBeInTheDocument();
+  });
+
   it("shows path and init button for non-git directory", async () => {
     mockUseGitState.mockReturnValue({
       data: {
diff --git a/ui/goose2/src/features/chat/ui/widgets/ArtifactsWidget.tsx b/ui/goose2/src/features/chat/ui/widgets/ArtifactsWidget.tsx
index 8ddd1e227c..22dd76a9f0 100644
--- a/ui/goose2/src/features/chat/ui/widgets/ArtifactsWidget.tsx
+++ b/ui/goose2/src/features/chat/ui/widgets/ArtifactsWidget.tsx
@@ -59,7 +59,15 @@ function getArtifactIcon(artifact: SessionArtifact) {
   return IconFile;
 }
 
-export function ArtifactsWidget() {
+interface ArtifactsWidgetProps {
+  isOpen: boolean;
+  onToggleOpen: () => void;
+}
+
+export function ArtifactsWidget({
+  isOpen,
+  onToggleOpen,
+}: ArtifactsWidgetProps) {
   const { t } = useTranslation("chat");
   const { getAllSessionArtifacts, openResolvedPath } =
     useArtifactPolicyContext();
@@ -77,6 +85,8 @@ export function ArtifactsWidget() {
     <Widget
       title={t("contextPanel.widgets.artifacts")}
       icon={<IconFileDescription className="size-3.5" />}
+      isOpen={isOpen}
+      onToggleOpen={onToggleOpen}
       action={
         <span className="text-xxs text-foreground-subtle">
           {artifacts.length}
@@ -93,11 +103,11 @@ export function ArtifactsWidget() {
           >
             <button
               type="button"
-              className="flex w-full select-none items-center gap-2 px-3 py-1.5 text-left transition-colors duration-100 hover:bg-muted/80"
+              className="relative flex w-full select-none items-center gap-2 px-4 py-1.5 text-left transition-colors duration-100 before:pointer-events-none before:absolute before:inset-x-4 before:top-0 before:h-px before:bg-border/70 before:content-[''] hover:bg-muted/80"
               onClick={() => void openResolvedPath(artifact.resolvedPath)}
             >
-              <Icon className="size-3.5 shrink-0 text-foreground-subtle" />
-              <span className="truncate text-xs text-foreground">
+              <Icon className="size-4 shrink-0 text-foreground-subtle" />
+              <span className="truncate text-sm text-foreground">
                 {artifact.filename}
               </span>
             </button>
diff --git a/ui/goose2/src/features/chat/ui/widgets/ChangesWidget.tsx b/ui/goose2/src/features/chat/ui/widgets/ChangesWidget.tsx
index 455ad8ac0e..219037c990 100644
--- a/ui/goose2/src/features/chat/ui/widgets/ChangesWidget.tsx
+++ b/ui/goose2/src/features/chat/ui/widgets/ChangesWidget.tsx
@@ -34,7 +34,8 @@ function ChangedFileRow({
       type="button"
       disabled={isDeleted}
       className={cn(
-        "flex w-full select-none items-center gap-2 px-3 py-1.5 text-left",
+        "relative flex w-full select-none items-center gap-2 px-4 py-1.5 text-left",
+        "before:pointer-events-none before:absolute before:inset-x-4 before:top-0 before:h-px before:bg-border/70 before:content-['']",
         "transition-colors duration-100",
         isDeleted ? "cursor-default opacity-60" : "hover:bg-muted/80",
       )}
@@ -47,11 +48,11 @@ function ChangedFileRow({
         )}
       >
         {dir && (
-          <span className="shrink truncate text-xs text-muted-foreground">
+          <span className="shrink truncate text-sm text-muted-foreground">
             {dir}
           </span>
         )}
-        <span className="shrink-0 whitespace-nowrap text-xs font-medium text-foreground">
+        <span className="shrink-0 whitespace-nowrap text-sm font-normal text-foreground">
           {name}
         </span>
       </div>
@@ -69,6 +70,8 @@ interface ChangesWidgetProps {
   currentBranch: string | null;
   repoPath: string;
   onOpenFile: (path: string) => void;
+  isOpen: boolean;
+  onToggleOpen: () => void;
 }
 
 export function ChangesWidget({
@@ -77,6 +80,8 @@ export function ChangesWidget({
   currentBranch,
   repoPath,
   onOpenFile,
+  isOpen,
+  onToggleOpen,
 }: ChangesWidgetProps) {
   const { t } = useTranslation("chat");
 
@@ -97,7 +102,7 @@ export function ChangesWidget({
     <div className="flex min-w-0 items-center gap-1">
       <span>{t("contextPanel.widgets.changes")}</span>
       {currentBranch && (
-        <span className="flex min-w-0 items-center gap-1 font-normal text-muted-foreground">
+        <span className="flex min-w-0 items-center gap-1 font-normal normal-case tracking-normal text-muted-foreground">
           <span className="shrink-0">
             {t("contextPanel.widgets.changesOnBranch")}
           </span>
@@ -128,9 +133,11 @@ export function ChangesWidget({
       icon={<IconGitBranch className="size-3.5 shrink-0" />}
       action={headerAction}
       flush={hasChanges}
+      isOpen={isOpen}
+      onToggleOpen={onToggleOpen}
     >
       {isLoading && !files ? (
-        <div className="space-y-2 px-3 py-2.5">
+        <div className="space-y-2 px-4 pb-3">
           <Skeleton className="h-3 w-3/4" />
           <Skeleton className="h-3 w-1/2" />
           <Skeleton className="h-3 w-2/3" />
@@ -147,7 +154,7 @@ export function ChangesWidget({
           ))}
         </div>
       ) : (
-        <p className="text-foreground-subtle">
+        <p className="px-4 text-sm text-foreground-subtle">
           {t("contextPanel.empty.noChanges")}
         </p>
       )}
diff --git a/ui/goose2/src/features/chat/ui/widgets/Widget.tsx b/ui/goose2/src/features/chat/ui/widgets/Widget.tsx
index 63c2edae8a..05007bff7c 100644
--- a/ui/goose2/src/features/chat/ui/widgets/Widget.tsx
+++ b/ui/goose2/src/features/chat/ui/widgets/Widget.tsx
@@ -1,30 +1,69 @@
 import type { ReactNode } from "react";
+import { IconChevronDown } from "@tabler/icons-react";
+import { cn } from "@/shared/lib/cn";
 
 interface WidgetProps {
   title: ReactNode;
   icon: ReactNode;
   action?: ReactNode;
   flush?: boolean;
+  isOpen?: boolean;
+  onToggleOpen?: () => void;
   children: ReactNode;
 }
 
-export function Widget({ title, icon, action, flush, children }: WidgetProps) {
+const SECTION_HEADER_TEXT_CLASS =
+  "min-w-0 overflow-hidden text-[11px] font-medium uppercase tracking-[0.08em] text-foreground-subtle";
+
+export function Widget({
+  title,
+  icon,
+  action,
+  flush,
+  isOpen = true,
+  onToggleOpen,
+  children,
+}: WidgetProps) {
+  const headerTitle = (
+    <>
+      {onToggleOpen ? (
+        <IconChevronDown
+          className={cn(
+            "size-3 shrink-0 text-foreground-subtle transition-transform duration-150",
+            !isOpen && "-rotate-90",
+          )}
+        />
+      ) : null}
+      <span className="shrink-0 text-foreground-subtle">{icon}</span>
+      <div className={SECTION_HEADER_TEXT_CLASS}>{title}</div>
+    </>
+  );
+
   return (
-    <div className="overflow-hidden rounded-md border border-border">
-      <div className="flex h-8 items-center justify-between gap-2 bg-background-alt px-3">
-        <div className="flex min-w-0 items-center gap-2 text-xs font-medium text-foreground">
-          {icon}
-          {title}
+    <section className="pb-3 pt-4 first:pt-3 last:pb-0">
+      <div className="px-4">
+        <div className="flex min-h-6 items-center justify-between gap-2">
+          {onToggleOpen ? (
+            <button
+              type="button"
+              onClick={onToggleOpen}
+              aria-expanded={isOpen}
+              className="flex min-w-0 flex-1 items-center gap-1.5 rounded-md py-1 text-left transition-colors hover:text-foreground"
+            >
+              {headerTitle}
+            </button>
+          ) : (
+            <div className="flex min-w-0 flex-1 items-center gap-1.5">
+              {headerTitle}
+            </div>
+          )}
+          {action && <div className="shrink-0">{action}</div>}
         </div>
-        {action && <div className="shrink-0">{action}</div>}
+        {isOpen && !flush && (
+          <div className="pt-2 text-sm text-foreground">{children}</div>
+        )}
       </div>
-      {flush ? (
-        children
-      ) : (
-        <div className="px-3 py-2.5 text-xs text-foreground-subtle">
-          {children}
-        </div>
-      )}
-    </div>
+      {isOpen && flush ? <div className="pt-1.5">{children}</div> : null}
+    </section>
   );
 }
diff --git a/ui/goose2/src/features/chat/ui/widgets/WorkingContextPicker.tsx b/ui/goose2/src/features/chat/ui/widgets/WorkingContextPicker.tsx
index 87c1787c8d..77a18bd1eb 100644
--- a/ui/goose2/src/features/chat/ui/widgets/WorkingContextPicker.tsx
+++ b/ui/goose2/src/features/chat/ui/widgets/WorkingContextPicker.tsx
@@ -204,17 +204,17 @@ export function WorkingContextPicker({
             type="button"
             className={cn(
               "flex w-full items-center gap-2 rounded-md border border-border px-2.5 py-2",
-              "text-xs text-foreground transition-colors",
+              "text-sm text-foreground transition-colors",
               "hover:bg-background-alt focus-visible:outline-none focus-visible:ring-1 focus-visible:ring-ring",
             )}
             aria-label={t("contextPanel.picker.selectContext")}
           >
-            <IconFolder className="size-3.5 shrink-0 text-muted-foreground" />
+            <IconFolder className="size-4 shrink-0 text-muted-foreground" />
             <span className="min-w-0 flex-1 text-left">
-              <span className="block truncate font-medium text-foreground">
+              <span className="block truncate font-normal text-foreground">
                 {activeWorktreeLabel ?? t("contextPanel.empty.folderNotSet")}
               </span>
-              <span className="block truncate text-xxs text-foreground-subtle">
+              <span className="block truncate text-xs text-foreground-subtle">
                 {t("contextPanel.picker.checkedOutBranch", {
                   branch: activeBranchLabel,
                 })}
@@ -239,18 +239,18 @@ export function WorkingContextPicker({
                   key={wt.path}
                   type="button"
                   className={cn(
-                    "flex w-full items-center gap-2 rounded-md px-2 py-1.5 text-left text-xs transition-colors",
+                    "flex w-full items-center gap-2 rounded-md px-2 py-1.5 text-left text-sm transition-colors",
                     "hover:bg-muted focus-visible:outline-none focus-visible:bg-muted",
                     isWorktreeSelected(wt.path) && "bg-muted",
                   )}
                   onClick={() => handleWorktreeSelect(wt.path, wt.branch)}
                 >
-                  <IconFolder className="size-3.5 shrink-0 text-muted-foreground" />
+                  <IconFolder className="size-4 shrink-0 text-muted-foreground" />
                   <div className="min-w-0 flex-1">
-                    <span className="block truncate font-medium text-foreground">
+                    <span className="block truncate font-normal text-foreground">
                       {worktreeName(wt.path)}
                     </span>
-                    <span className="block truncate text-xxs text-foreground-subtle">
+                    <span className="block truncate text-xs text-foreground-subtle">
                       {t("contextPanel.picker.checkedOutBranch", {
                         branch: wt.branch ?? t("contextPanel.states.detached"),
                       })}
@@ -283,19 +283,19 @@ export function WorkingContextPicker({
                     type="button"
                     disabled={switching || isCurrentBranch}
                     className={cn(
-                      "flex w-full items-center gap-2 rounded-md px-2 py-1.5 text-left text-xs transition-colors",
+                      "flex w-full items-center gap-2 rounded-md px-2 py-1.5 text-left text-sm transition-colors",
                       "hover:bg-muted focus-visible:outline-none focus-visible:bg-muted",
                       "disabled:opacity-50",
                     )}
                     onClick={() => handleBranchSelect(branch)}
                   >
-                    <IconGitBranch className="size-3.5 shrink-0 text-muted-foreground" />
+                    <IconGitBranch className="size-4 shrink-0 text-muted-foreground" />
                     <div className="min-w-0 flex-1">
-                      <span className="block truncate font-medium text-foreground">
+                      <span className="block truncate font-normal text-foreground">
                         {branch}
                       </span>
                       {branchMeta ? (
-                        <span className="block truncate text-xxs text-muted-foreground">
+                        <span className="block truncate text-xs text-muted-foreground">
                           {branchMeta}
                         </span>
                       ) : null}
diff --git a/ui/goose2/src/features/chat/ui/widgets/WorkspaceWidget.tsx b/ui/goose2/src/features/chat/ui/widgets/WorkspaceWidget.tsx
index 752a925ad3..1fa346aa22 100644
--- a/ui/goose2/src/features/chat/ui/widgets/WorkspaceWidget.tsx
+++ b/ui/goose2/src/features/chat/ui/widgets/WorkspaceWidget.tsx
@@ -36,6 +36,8 @@ interface WorkspaceWidgetProps {
     baseBranch?: string,
   ) => Promise<CreatedWorktree>;
   onRefresh: () => void;
+  isOpen: boolean;
+  onToggleOpen: () => void;
 }
 
 export function WorkspaceWidget({
@@ -56,6 +58,8 @@ export function WorkspaceWidget({
   onCreateBranch,
   onCreateWorktree,
   onRefresh,
+  isOpen,
+  onToggleOpen,
 }: WorkspaceWidgetProps) {
   const { t } = useTranslation("chat");
   const primaryWorkspaceRoot = projectWorkingDirs[0] ?? null;
@@ -67,6 +71,8 @@ export function WorkspaceWidget({
     <Widget
       title={t("contextPanel.widgets.workspace")}
       icon={<IconFolder className="size-3.5" />}
+      isOpen={isOpen}
+      onToggleOpen={onToggleOpen}
       action={
         <Button
           type="button"
@@ -107,7 +113,7 @@ export function WorkspaceWidget({
           <p className="truncate">{t("contextPanel.empty.folderNotSet")}</p>
         ) : isLoading && !gitState ? (
           <div className="flex items-center gap-2 text-foreground">
-            <Spinner className="size-3.5" />
+            <Spinner className="size-4" />
             <span>{t("contextPanel.states.gitLoading")}</span>
           </div>
         ) : error ? (
@@ -144,8 +150,9 @@ export function WorkspaceWidget({
               variant="ghost"
               size="xs"
               onClick={() => void onInitRepo(primaryWorkspaceRoot)}
+              className="text-sm"
             >
-              <IconGitBranch className="size-3" />
+              <IconGitBranch className="size-4" />
               {t("contextPanel.git.initRepo")}
             </Button>
           </div>
diff --git a/ui/goose2/src/features/sidebar/ui/Sidebar.tsx b/ui/goose2/src/features/sidebar/ui/Sidebar.tsx
index ae0a459ae5..8a47ebc285 100644
--- a/ui/goose2/src/features/sidebar/ui/Sidebar.tsx
+++ b/ui/goose2/src/features/sidebar/ui/Sidebar.tsx
@@ -33,6 +33,7 @@ import { useProjectStore } from "@/features/projects/stores/projectStore";
 import { selectProjects } from "@/features/projects/stores/projectSelectors";
 import { Button } from "@/shared/ui/button";
 import { useSessionSearch } from "@/features/sessions/hooks/useSessionSearch";
+import { SIDE_PANEL_DEFAULT_WIDTH } from "@/shared/constants/panels";
 import { SidebarProjectsSection } from "./SidebarProjectsSection";
 import { SidebarNavItem } from "./SidebarNavItem";
 import { SidebarSearchResults } from "./SidebarSearchResults";
@@ -66,10 +67,36 @@ interface SidebarProps {
 }
 
 const EXPANDED_PROJECTS_STORAGE_KEY = "goose:sidebar:expanded-projects";
+const SECTION_VISIBILITY_STORAGE_KEY = "goose:sidebar:section-visibility";
+type SidebarSectionVisibility = {
+  projects: boolean;
+  recents: boolean;
+};
+
+function getStoredSectionVisibility(): SidebarSectionVisibility {
+  const defaults = { projects: true, recents: true };
+  if (typeof window === "undefined") return defaults;
+  try {
+    const stored = window.localStorage.getItem(SECTION_VISIBILITY_STORAGE_KEY);
+    if (!stored) return defaults;
+    const parsed = JSON.parse(stored);
+    if (!parsed || typeof parsed !== "object") return defaults;
+    return {
+      projects:
+        typeof parsed.projects === "boolean"
+          ? parsed.projects
+          : defaults.projects,
+      recents:
+        typeof parsed.recents === "boolean" ? parsed.recents : defaults.recents,
+    };
+  } catch {
+    return defaults;
+  }
+}
 
 export function Sidebar({
   collapsed,
-  width = 240,
+  width = SIDE_PANEL_DEFAULT_WIDTH,
   isResizing = false,
   onCollapse,
   onSettingsClick,
@@ -107,6 +134,9 @@ export function Sidebar({
       return {};
     }
   });
+  const [sectionVisibility, setSectionVisibility] = useState(
+    getStoredSectionVisibility,
+  );
 
   const messagesBySession = useChatStore(selectMessagesBySession);
   const sessionStateById = useChatStore(selectSessionStateById);
@@ -239,6 +269,17 @@ export function Sidebar({
     }
   }, [expandedProjects]);
 
+  useEffect(() => {
+    try {
+      window.localStorage.setItem(
+        SECTION_VISIBILITY_STORAGE_KEY,
+        JSON.stringify(sectionVisibility),
+      );
+    } catch {
+      // localStorage may be unavailable
+    }
+  }, [sectionVisibility]);
+
   useEffect(() => {
     if (projects.length === 0) return;
     const validProjectIds = new Set(projects.map((project) => project.id));
@@ -267,6 +308,9 @@ export function Sidebar({
 
   const toggleProject = (projectId: string) =>
     setExpandedProjects((prev) => ({ ...prev, [projectId]: !prev[projectId] }));
+  const toggleSection = (section: keyof SidebarSectionVisibility) => {
+    setSectionVisibility((prev) => ({ ...prev, [section]: !prev[section] }));
+  };
 
   return (
     <div
@@ -297,7 +341,7 @@ export function Sidebar({
                 variant="ghost"
                 size="icon-sm"
                 onClick={onCollapse}
-                className="text-foreground hover:text-foreground"
+                className="text-muted-foreground transition-opacity duration-150 hover:text-foreground"
                 aria-label={t("actions.collapse")}
                 title={t("actions.collapse")}
               >
@@ -320,7 +364,7 @@ export function Sidebar({
                   type="button"
                   onClick={onCollapse}
                   title={t("actions.expand")}
-                  className="flex w-full items-center gap-2.5 rounded-md px-3 py-1.5 text-sm text-foreground transition-colors duration-200 hover:text-foreground"
+                  className="flex w-full items-center gap-2.5 rounded-md px-3 py-1.5 text-sm text-muted-foreground transition-colors duration-200 hover:text-foreground"
                   aria-label={t("actions.expand")}
                 >
                   <IconLayoutSidebar className="size-4 flex-shrink-0" />
@@ -455,6 +499,10 @@ export function Sidebar({
                   onRenameChat={onRenameChat}
                   onMoveToProject={onMoveToProject}
                   onReorderProject={onReorderProject}
+                  projectsSectionOpen={sectionVisibility.projects}
+                  recentsSectionOpen={sectionVisibility.recents}
+                  onToggleProjectsSection={() => toggleSection("projects")}
+                  onToggleRecentsSection={() => toggleSection("recents")}
                 />
               ))}
           </nav>
diff --git a/ui/goose2/src/features/sidebar/ui/SidebarProjectsSection.tsx b/ui/goose2/src/features/sidebar/ui/SidebarProjectsSection.tsx
index 39d5517a4d..dd2fa159c1 100644
--- a/ui/goose2/src/features/sidebar/ui/SidebarProjectsSection.tsx
+++ b/ui/goose2/src/features/sidebar/ui/SidebarProjectsSection.tsx
@@ -1,4 +1,5 @@
 import { useTranslation } from "react-i18next";
+import { IconChevronDown } from "@tabler/icons-react";
 import type { AppView } from "@/app/AppShell";
 import type { ProjectInfo } from "@/features/projects/api/projects";
 import { cn } from "@/shared/lib/cn";
@@ -36,8 +37,15 @@ interface SidebarProjectsSectionProps {
   onRenameChat?: (sessionId: string, nextTitle: string) => void;
   onMoveToProject?: (sessionId: string, projectId: string | null) => void;
   onReorderProject?: (fromId: string, toId: string) => void;
+  projectsSectionOpen: boolean;
+  recentsSectionOpen: boolean;
+  onToggleProjectsSection: () => void;
+  onToggleRecentsSection: () => void;
 }
 
+const SECTION_HEADER_TEXT_CLASS =
+  "text-[11px] font-medium uppercase tracking-[0.08em] text-foreground-subtle";
+
 export function SidebarProjectsSection({
   projects,
   projectSessions,
@@ -58,8 +66,13 @@ export function SidebarProjectsSection({
   onRenameChat,
   onMoveToProject,
   onReorderProject,
+  projectsSectionOpen,
+  recentsSectionOpen,
+  onToggleProjectsSection,
+  onToggleRecentsSection,
 }: SidebarProjectsSectionProps) {
   const { t } = useTranslation(["sidebar", "common"]);
+  const showProjects = collapsed || projectsSectionOpen;
 
   return (
     <div
@@ -79,17 +92,30 @@ export function SidebarProjectsSection({
           collapsed ? "px-0 pt-0 pb-1 justify-center" : "pt-5 pb-1.5",
         )}
       >
-        <span
-          className={cn(
-            "text-[12px] font-normal text-muted-foreground/80 flex-1 pl-3",
-            labelTransition,
-            labelVisible
-              ? "opacity-100 w-auto"
-              : "opacity-0 w-0 overflow-hidden",
-          )}
-        >
-          {t("sections.projects")}
-        </span>
+        {!collapsed && (
+          <button
+            type="button"
+            onClick={onToggleProjectsSection}
+            aria-expanded={projectsSectionOpen}
+            className={cn(
+              "flex min-w-0 flex-1 items-center gap-1.5 rounded-md py-1 pl-3 text-left transition-colors hover:text-foreground",
+              labelTransition,
+              labelVisible
+                ? "opacity-100 w-auto"
+                : "opacity-0 w-0 overflow-hidden",
+            )}
+          >
+            <IconChevronDown
+              className={cn(
+                "size-3 shrink-0 text-foreground-subtle transition-transform duration-150",
+                !projectsSectionOpen && "-rotate-90",
+              )}
+            />
+            <span className={cn("truncate", SECTION_HEADER_TEXT_CLASS)}>
+              {t("sections.projects")}
+            </span>
+          </button>
+        )}
         {!collapsed && (
           <Button
             type="button"
@@ -107,23 +133,25 @@ export function SidebarProjectsSection({
         )}
       </div>
 
-      <SidebarProjectList
-        projects={projects}
-        projectSessionsByProject={projectSessions.byProject}
-        expandedProjects={expandedProjects}
-        toggleProject={toggleProject}
-        collapsed={collapsed}
-        activeSessionId={activeSessionId}
-        onNavigate={onNavigate}
-        onSelectSession={onSelectSession}
-        onNewChatInProject={onNewChatInProject}
-        onEditProject={onEditProject}
-        onArchiveProject={onArchiveProject}
-        onArchiveChat={onArchiveChat}
-        onRenameChat={onRenameChat}
-        onMoveToProject={onMoveToProject}
-        onReorderProject={onReorderProject}
-      />
+      {showProjects && (
+        <SidebarProjectList
+          projects={projects}
+          projectSessionsByProject={projectSessions.byProject}
+          expandedProjects={expandedProjects}
+          toggleProject={toggleProject}
+          collapsed={collapsed}
+          activeSessionId={activeSessionId}
+          onNavigate={onNavigate}
+          onSelectSession={onSelectSession}
+          onNewChatInProject={onNewChatInProject}
+          onEditProject={onEditProject}
+          onArchiveProject={onArchiveProject}
+          onArchiveChat={onArchiveChat}
+          onRenameChat={onRenameChat}
+          onMoveToProject={onMoveToProject}
+          onReorderProject={onReorderProject}
+        />
+      )}
 
       <SidebarRecentsSection
         sessions={projectSessions.standalone}
@@ -136,6 +164,9 @@ export function SidebarProjectsSection({
         onArchiveChat={onArchiveChat}
         onRenameChat={onRenameChat}
         onMoveToProject={onMoveToProject}
+        isOpen={recentsSectionOpen}
+        onToggleOpen={onToggleRecentsSection}
+        sectionHeaderTextClass={SECTION_HEADER_TEXT_CLASS}
       />
     </div>
   );
diff --git a/ui/goose2/src/features/sidebar/ui/SidebarRecentsSection.tsx b/ui/goose2/src/features/sidebar/ui/SidebarRecentsSection.tsx
index 19f6dea6dc..3f905410a0 100644
--- a/ui/goose2/src/features/sidebar/ui/SidebarRecentsSection.tsx
+++ b/ui/goose2/src/features/sidebar/ui/SidebarRecentsSection.tsx
@@ -1,6 +1,6 @@
 import { useCallback, useState, type DragEvent } from "react";
 import { useTranslation } from "react-i18next";
-import { IconEdit, IconMessage } from "@tabler/icons-react";
+import { IconChevronDown, IconEdit, IconMessage } from "@tabler/icons-react";
 import { getDisplaySessionTitle } from "@/features/chat/lib/sessionTitle";
 import { cn } from "@/shared/lib/cn";
 import { Button } from "@/shared/ui/button";
@@ -26,6 +26,9 @@ export function SidebarRecentsSection({
   onArchiveChat,
   onRenameChat,
   onMoveToProject,
+  isOpen,
+  onToggleOpen,
+  sectionHeaderTextClass,
 }: {
   sessions: TabInfo[];
   collapsed: boolean;
@@ -37,9 +40,13 @@ export function SidebarRecentsSection({
   onArchiveChat?: (sessionId: string) => void;
   onRenameChat?: (sessionId: string, nextTitle: string) => void;
   onMoveToProject?: (sessionId: string, projectId: string | null) => void;
+  isOpen: boolean;
+  onToggleOpen: () => void;
+  sectionHeaderTextClass: string;
 }) {
   const { t } = useTranslation(["sidebar", "common"]);
   const [recentsDragOver, setRecentsDragOver] = useState(false);
+  const showContent = collapsed || isOpen;
 
   const handleRecentsDragOver = useCallback((e: DragEvent<HTMLDivElement>) => {
     const hasSession = e.dataTransfer.types.includes("text/x-session-id");
@@ -81,17 +88,30 @@ export function SidebarRecentsSection({
           collapsed ? "px-0 pt-0 pb-1 justify-center" : "pt-5 pb-1.5",
         )}
       >
-        <span
-          className={cn(
-            "text-[12px] font-normal text-muted-foreground/80 flex-1 pl-3",
-            labelTransition,
-            labelVisible
-              ? "opacity-100 w-auto"
-              : "opacity-0 w-0 overflow-hidden",
-          )}
-        >
-          {t("sections.recents")}
-        </span>
+        {!collapsed && (
+          <button
+            type="button"
+            onClick={onToggleOpen}
+            aria-expanded={isOpen}
+            className={cn(
+              "flex min-w-0 flex-1 items-center gap-1.5 rounded-md py-1 pl-3 text-left transition-colors hover:text-foreground",
+              labelTransition,
+              labelVisible
+                ? "opacity-100 w-auto"
+                : "opacity-0 w-0 overflow-hidden",
+            )}
+          >
+            <IconChevronDown
+              className={cn(
+                "size-3 shrink-0 text-foreground-subtle transition-transform duration-150",
+                !isOpen && "-rotate-90",
+              )}
+            />
+            <span className={cn("truncate", sectionHeaderTextClass)}>
+              {t("sections.recents")}
+            </span>
+          </button>
+        )}
         {!collapsed && onNewChat && (
           <Button
             type="button"
@@ -114,7 +134,8 @@ export function SidebarRecentsSection({
         )}
       </div>
 
-      {sessions.length > 0 &&
+      {showContent &&
+        sessions.length > 0 &&
         (collapsed ? (
           <div className="flex flex-col items-center gap-1">
             {sessions.map((session) => (
diff --git a/ui/goose2/src/features/sidebar/ui/__tests__/Sidebar.test.tsx b/ui/goose2/src/features/sidebar/ui/__tests__/Sidebar.test.tsx
index 1525a45aa0..18905f33d8 100644
--- a/ui/goose2/src/features/sidebar/ui/__tests__/Sidebar.test.tsx
+++ b/ui/goose2/src/features/sidebar/ui/__tests__/Sidebar.test.tsx
@@ -1,6 +1,6 @@
 import { render, screen } from "@testing-library/react";
 import userEvent from "@testing-library/user-event";
-import { describe, expect, it, vi } from "vitest";
+import { beforeEach, describe, expect, it, vi } from "vitest";
 import { Sidebar } from "../Sidebar";
 
 const mockSessions: Array<{
@@ -44,6 +44,11 @@ vi.mock("@/features/projects/stores/projectStore", () => ({
 }));
 
 describe("Sidebar", () => {
+  beforeEach(() => {
+    mockSessions.splice(0, mockSessions.length);
+    window.localStorage.clear();
+  });
+
   it("shows sessions in recents when their project is not loaded", () => {
     mockSessions.splice(0, mockSessions.length, {
       id: "session-1",
@@ -132,4 +137,35 @@ describe("Sidebar", () => {
 
     expect(screen.getByRole("button", { name: /home/i })).toBeInTheDocument();
   });
+
+  it("collapses and expands the recents section", async () => {
+    const user = userEvent.setup();
+    mockSessions.splice(0, mockSessions.length, {
+      id: "session-1",
+      title: "Recovered Session",
+      updatedAt: "2026-04-09T12:00:00.000Z",
+      messageCount: 3,
+    });
+
+    render(
+      <Sidebar
+        collapsed={false}
+        onCollapse={vi.fn()}
+        onNavigate={vi.fn()}
+        onSelectSession={vi.fn()}
+        projects={[]}
+      />,
+    );
+
+    const recentsHeader = screen.getByRole("button", { name: /chats/i });
+    expect(screen.getByText("Recovered Session")).toBeInTheDocument();
+
+    await user.click(recentsHeader);
+    expect(screen.queryByText("Recovered Session")).not.toBeInTheDocument();
+
+    await user.click(recentsHeader);
+    expect(screen.getByText("Recovered Session")).toBeInTheDocument();
+
+    mockSessions.splice(0, mockSessions.length);
+  });
 });
diff --git a/ui/goose2/src/shared/constants/panels.ts b/ui/goose2/src/shared/constants/panels.ts
new file mode 100644
index 0000000000..7f88133d81
--- /dev/null
+++ b/ui/goose2/src/shared/constants/panels.ts
@@ -0,0 +1 @@
+export const SIDE_PANEL_DEFAULT_WIDTH = 300;