diff --git a/ui/desktop/src/components/SpellCheckTooltip.tsx b/ui/desktop/src/components/SpellCheckTooltip.tsx
index f1ab5e72b4..30f7cac590 100644
--- a/ui/desktop/src/components/SpellCheckTooltip.tsx
+++ b/ui/desktop/src/components/SpellCheckTooltip.tsx
@@ -25,6 +25,7 @@ const SpellCheckTooltip: React.FC<SpellCheckTooltipProps> = ({
 }) => {
   const tooltipRef = useRef<HTMLDivElement>(null);
   const [adjustedPosition, setAdjustedPosition] = useState(position);
+  const [selectedIndex, setSelectedIndex] = useState(0);
 
   // Adjust position to keep tooltip within viewport
   useEffect(() => {
@@ -33,22 +34,32 @@ const SpellCheckTooltip: React.FC<SpellCheckTooltipProps> = ({
       const rect = tooltip.getBoundingClientRect();
       const viewportWidth = window.innerWidth;
       const viewportHeight = window.innerHeight;
+      const tooltipWidth = rect.width || 200; // fallback width
+      const tooltipHeight = rect.height || 100; // fallback height
 
       let adjustedX = position.x;
       let adjustedY = position.y;
 
+      // Calculate the tooltip's left edge when centered
+      const tooltipLeftEdge = position.x - (tooltipWidth / 2);
+      const tooltipRightEdge = position.x + (tooltipWidth / 2);
+
       // Adjust horizontal position if tooltip would overflow
-      if (position.x + rect.width > viewportWidth) {
-        adjustedX = viewportWidth - rect.width - 10;
-      }
-      if (adjustedX < 10) {
-        adjustedX = 10;
+      if (tooltipLeftEdge < 10) {
+        // If left edge would be cut off, align to left edge with padding
+        adjustedX = (tooltipWidth / 2) + 10;
+      } else if (tooltipRightEdge > viewportWidth - 10) {
+        // If right edge would be cut off, align to right edge with padding
+        adjustedX = viewportWidth - (tooltipWidth / 2) - 10;
       }
 
       // Adjust vertical position if tooltip would overflow
-      if (position.y + rect.height > viewportHeight) {
-        adjustedY = position.y - rect.height - 10;
+      if (position.y + tooltipHeight + 50 > viewportHeight) {
+        // Show above the word instead of below
+        adjustedY = position.y - tooltipHeight - 10;
       }
+      
+      // Ensure tooltip doesn't go above viewport
       if (adjustedY < 10) {
         adjustedY = 10;
       }
@@ -59,65 +70,99 @@ const SpellCheckTooltip: React.FC<SpellCheckTooltipProps> = ({
 
   if (!isVisible) return null;
 
+  console.log('🖱️ TOOLTIP COMPONENT: Rendering visible tooltip');
+
   return (
     <div
       ref={tooltipRef}
-      data-spell-tooltip="true"
-      className="fixed z-[9999] bg-white dark:bg-gray-800 border border-gray-200 dark:border-gray-700 rounded-lg shadow-lg py-2 px-0 min-w-[200px] max-w-[300px]"
+      tabIndex={-1} // Make it focusable for keyboard events
+      data-spell-tooltip="true" // For click detection
+      className="fixed z-50 bg-background-default border border-border-default rounded-lg shadow-xl py-2 min-w-48 max-w-64 outline-none"
       style={{
         left: `${adjustedPosition.x}px`,
-        top: `${adjustedPosition.y + 25}px`, // Offset below the word
-        transform: 'translateX(-50%)', // Center horizontally
+        top: `${adjustedPosition.y - 5}px`, // Position right above the word
+        transform: 'translateX(-50%)', // Only center horizontally
+        boxShadow: '0 10px 25px rgba(0, 0, 0, 0.15), 0 4px 6px rgba(0, 0, 0, 0.1)',
       }}
       onMouseEnter={onMouseEnter}
       onMouseLeave={onMouseLeave}
     >
       {/* Header */}
-      <div className="px-3 pb-2 border-b border-gray-200 dark:border-gray-700">
-        <div className="text-sm font-medium text-gray-900 dark:text-gray-100">
-          Misspelled: <span className="text-red-600 dark:text-red-400">{misspelledWord}</span>
-        </div>
+      <div className="px-3 py-1 text-xs text-text-muted border-b border-border-subtle mb-1 font-medium">
+        Suggestions for "<span className="text-red-600 dark:text-red-400 font-semibold">{misspelledWord}</span>"
       </div>
 
       {/* Suggestions */}
-      {suggestions.length > 0 && (
-        <div className="py-1">
-          <div className="px-3 py-1 text-xs font-medium text-gray-500 dark:text-gray-400 uppercase tracking-wide">
-            Suggestions
-          </div>
+      {suggestions.length > 0 ? (
+        <div className="max-h-32 overflow-y-auto">
           {suggestions.slice(0, 5).map((suggestion, index) => (
             <button
               key={index}
-              className="w-full px-3 py-2 text-left text-sm text-gray-700 dark:text-gray-300 hover:bg-gray-100 dark:hover:bg-gray-700 focus:bg-gray-100 dark:focus:bg-gray-700 focus:outline-none transition-colors duration-150"
-              onClick={() => onSuggestionSelect(suggestion)}
+              onClick={(e) => {
+                e.preventDefault();
+                e.stopPropagation();
+                console.log('🖱️ SUGGESTION CLICKED:', suggestion);
+                onSuggestionSelect(suggestion);
+              }}
+              onMouseEnter={() => setSelectedIndex(index)}
+              className={`w-full text-left px-3 py-2 text-sm transition-all duration-150 flex items-center gap-2 ${
+                selectedIndex === index
+                  ? 'bg-blue-50 dark:bg-blue-900/20 text-blue-900 dark:text-blue-100 border-l-2 border-blue-500'
+                  : 'text-text-default hover:bg-background-subtle'
+              }`}
             >
-              {suggestion}
+              <span 
+                className={`w-5 h-5 flex items-center justify-center text-xs rounded text-[10px] font-bold ${
+                  selectedIndex === index
+                    ? 'bg-blue-500 text-white'
+                    : 'bg-text-muted text-white'
+                }`}
+              >
+                {index + 1}
+              </span>
+              <span className="font-medium truncate">{suggestion}</span>
             </button>
           ))}
         </div>
-      )}
-
-      {/* No suggestions message */}
-      {suggestions.length === 0 && (
-        <div className="px-3 py-2 text-sm text-gray-500 dark:text-gray-400">
+      ) : (
+        <div className="px-3 py-2 text-sm text-text-muted italic">
           No suggestions available
         </div>
       )}
 
-      {/* Actions */}
-      <div className="border-t border-gray-200 dark:border-gray-700 pt-1">
-        <button
-          className="w-full px-3 py-2 text-left text-sm text-gray-700 dark:text-gray-300 hover:bg-gray-100 dark:hover:bg-gray-700 focus:bg-gray-100 dark:focus:bg-gray-700 focus:outline-none transition-colors duration-150"
-          onClick={onAddToDictionary}
-        >
-          Add to Dictionary
-        </button>
-        <button
-          className="w-full px-3 py-2 text-left text-sm text-gray-700 dark:text-gray-300 hover:bg-gray-100 dark:hover:bg-gray-700 focus:bg-gray-100 dark:focus:bg-gray-700 focus:outline-none transition-colors duration-150"
-          onClick={onIgnore}
-        >
-          Ignore
-        </button>
+      {/* Separator */}
+      <div className="border-t border-border-subtle my-1" />
+
+      {/* Additional actions */}
+      <button
+        onClick={(e) => {
+          e.preventDefault();
+          e.stopPropagation();
+          console.log('🖱️ ADD TO DICTIONARY CLICKED');
+          onAddToDictionary();
+        }}
+        className="w-full text-left px-3 py-1.5 text-xs text-text-muted hover:bg-background-subtle transition-colors flex items-center gap-2"
+      >
+        <span className="text-green-600 dark:text-green-400">+</span>
+        Add to dictionary
+      </button>
+      
+      <button
+        onClick={(e) => {
+          e.preventDefault();
+          e.stopPropagation();
+          console.log('🖱️ IGNORE CLICKED');
+          onIgnore();
+        }}
+        className="w-full text-left px-3 py-1.5 text-xs text-text-muted hover:bg-background-subtle transition-colors flex items-center gap-2"
+      >
+        <span className="text-text-muted">×</span>
+        Ignore word
+      </button>
+
+      {/* Keyboard hints */}
+      <div className="px-3 py-1 text-[10px] text-text-muted border-t border-border-subtle mt-1">
+        Press 1-5 to select • ↑↓ to navigate • Enter to apply • Esc to close
       </div>
     </div>
   );