diff --git a/package-lock.json b/package-lock.json
index 769aeb5..1b089d4 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "claude-code-ui",
-  "version": "1.7.0",
+  "version": "1.8.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "claude-code-ui",
-      "version": "1.7.0",
+      "version": "1.8.0",
       "license": "MIT",
       "dependencies": {
         "@codemirror/lang-css": "^6.3.1",
diff --git a/server/index.js b/server/index.js
index f074c57..d69f825 100755
--- a/server/index.js
+++ b/server/index.js
@@ -301,6 +301,66 @@ app.post('/api/projects/create', authenticateToken, async (req, res) => {
     }
 });
 
+// Browse filesystem endpoint for project suggestions - uses existing getFileTree
+app.get('/api/browse-filesystem', authenticateToken, async (req, res) => {    
+    try {
+        const { path: dirPath } = req.query;
+        
+        // Default to home directory if no path provided
+        const homeDir = os.homedir();
+        let targetPath = dirPath ? dirPath.replace('~', homeDir) : homeDir;
+        
+        // Resolve and normalize the path
+        targetPath = path.resolve(targetPath);
+        
+        // Security check - ensure path is accessible
+        try {
+            await fs.promises.access(targetPath);
+            const stats = await fs.promises.stat(targetPath);
+            
+            if (!stats.isDirectory()) {
+                return res.status(400).json({ error: 'Path is not a directory' });
+            }
+        } catch (err) {
+            return res.status(404).json({ error: 'Directory not accessible' });
+        }
+        
+        // Use existing getFileTree function with shallow depth (only direct children)
+        const fileTree = await getFileTree(targetPath, 1, 0, false); // maxDepth=1, showHidden=false
+        
+        // Filter only directories and format for suggestions
+        const directories = fileTree
+            .filter(item => item.type === 'directory')
+            .map(item => ({
+                path: item.path,
+                name: item.name,
+                type: 'directory'
+            }))
+            .slice(0, 20); // Limit results
+            
+        // Add common directories if browsing home directory
+        const suggestions = [];
+        if (targetPath === homeDir) {
+            const commonDirs = ['Desktop', 'Documents', 'Projects', 'Development', 'Dev', 'Code', 'workspace'];
+            const existingCommon = directories.filter(dir => commonDirs.includes(dir.name));
+            const otherDirs = directories.filter(dir => !commonDirs.includes(dir.name));
+            
+            suggestions.push(...existingCommon, ...otherDirs);
+        } else {
+            suggestions.push(...directories);
+        }
+        
+        res.json({ 
+            path: targetPath,
+            suggestions: suggestions 
+        });
+        
+    } catch (error) {
+        console.error('Error browsing filesystem:', error);
+        res.status(500).json({ error: 'Failed to browse filesystem' });
+    }
+});
+
 // Read file content endpoint
 app.get('/api/projects/:projectName/file', authenticateToken, async (req, res) => {
     try {
diff --git a/src/components/Sidebar.jsx b/src/components/Sidebar.jsx
index 4d1d4e2..71a6288 100644
--- a/src/components/Sidebar.jsx
+++ b/src/components/Sidebar.jsx
@@ -1,4 +1,4 @@
-import React, { useState, useEffect } from 'react';
+import React, { useState, useEffect, useRef } from 'react';
 import { ScrollArea } from './ui/scroll-area';
 import { Button } from './ui/button';
 import { Badge } from './ui/badge';
@@ -72,6 +72,10 @@ function Sidebar({
   const [editingSessionName, setEditingSessionName] = useState('');
   const [generatingSummary, setGeneratingSummary] = useState({});
   const [searchFilter, setSearchFilter] = useState('');
+  const [showPathDropdown, setShowPathDropdown] = useState(false);
+  const [pathList, setPathList] = useState([]);
+  const [filteredPaths, setFilteredPaths] = useState([]);
+  const [selectedPathIndex, setSelectedPathIndex] = useState(-1);
 
   // TaskMaster context
   const { setCurrentProject, mcpServerStatus } = useTaskMaster();
@@ -176,6 +180,124 @@ function Sidebar({
     };
   }, []);
 
+  // Load available paths for suggestions
+  useEffect(() => {
+    const loadPaths = async () => {
+      try {
+        // Get recent paths from localStorage
+        const recentPaths = JSON.parse(localStorage.getItem('recentProjectPaths') || '[]');
+        
+        // Load common/home directory paths
+        const response = await api.browseFilesystem();
+        const data = await response.json();
+        
+        if (data.suggestions) {
+          const homePaths = data.suggestions.map(s => ({ name: s.name, path: s.path }));
+          const allPaths = [...recentPaths.map(path => ({ name: path.split('/').pop(), path })), ...homePaths];
+          setPathList(allPaths);
+        } else {
+          setPathList(recentPaths.map(path => ({ name: path.split('/').pop(), path })));
+        }
+      } catch (error) {
+        console.error('Error loading paths:', error);
+        const recentPaths = JSON.parse(localStorage.getItem('recentProjectPaths') || '[]');
+        setPathList(recentPaths.map(path => ({ name: path.split('/').pop(), path })));
+      }
+    };
+
+    loadPaths();
+  }, []);
+
+  // Handle input change and path filtering with dynamic browsing (ChatInterface pattern + dynamic browsing)
+  useEffect(() => {
+    const inputValue = newProjectPath.trim();
+    
+    if (inputValue.length === 0) {
+      setShowPathDropdown(false);
+      return;
+    }
+    
+    // Show dropdown when user starts typing
+    setShowPathDropdown(true);
+    
+    const updateSuggestions = async () => {
+      // First show filtered existing suggestions from pathList
+      const staticFiltered = pathList.filter(pathItem => 
+        pathItem.name.toLowerCase().includes(inputValue.toLowerCase()) ||
+        pathItem.path.toLowerCase().includes(inputValue.toLowerCase())
+      );
+
+      // Check if input looks like a directory path for dynamic browsing
+      const isDirPath = inputValue.includes('/') && inputValue.length > 1;
+      
+      if (isDirPath) {
+        try {
+          let dirToSearch;
+          
+          // Determine which directory to search
+          if (inputValue.endsWith('/')) {
+            // User typed "/home/simos/" - search inside /home/simos
+            dirToSearch = inputValue.slice(0, -1);
+          } else {
+            // User typed "/home/simos/con" - search inside /home/simos for items starting with "con"
+            const lastSlashIndex = inputValue.lastIndexOf('/');
+            dirToSearch = inputValue.substring(0, lastSlashIndex);
+          }
+          
+          // Only search if we have a valid directory path (not root only)
+          if (dirToSearch && dirToSearch !== '') {
+            const response = await api.browseFilesystem(dirToSearch);
+            const data = await response.json();
+            
+            if (data.suggestions) {
+              // Filter directories that match the current input
+              const partialName = inputValue.substring(inputValue.lastIndexOf('/') + 1);
+              const dynamicPaths = data.suggestions
+                .filter(suggestion => {
+                  const dirName = suggestion.name;
+                  return partialName ? dirName.toLowerCase().startsWith(partialName.toLowerCase()) : true;
+                })
+                .map(s => ({ name: s.name, path: s.path }))
+                .slice(0, 8);
+              
+              // Combine static and dynamic suggestions, prioritize dynamic
+              const combined = [...dynamicPaths, ...staticFiltered].slice(0, 8);
+              setFilteredPaths(combined);
+              setSelectedPathIndex(-1);
+              return;
+            }
+          }
+        } catch (error) {
+          console.debug('Dynamic browsing failed:', error.message);
+        }
+      }
+
+      // Fallback to just static filtered suggestions
+      setFilteredPaths(staticFiltered.slice(0, 8));
+      setSelectedPathIndex(-1);
+    };
+
+    updateSuggestions();
+  }, [newProjectPath, pathList]);
+
+  // Select path from dropdown (ChatInterface pattern)
+  const selectPath = (pathItem) => {
+    setNewProjectPath(pathItem.path);
+    setShowPathDropdown(false);
+    setSelectedPathIndex(-1);
+  };
+
+  // Save path to recent paths
+  const saveToRecentPaths = (path) => {
+    try {
+      const recentPaths = JSON.parse(localStorage.getItem('recentProjectPaths') || '[]');
+      const updatedPaths = [path, ...recentPaths.filter(p => p !== path)].slice(0, 10);
+      localStorage.setItem('recentProjectPaths', JSON.stringify(updatedPaths));
+    } catch (error) {
+      console.error('Error saving recent paths:', error);
+    }
+  };
+
   const toggleProject = (projectName) => {
     const newExpanded = new Set(expandedProjects);
     if (newExpanded.has(projectName)) {
@@ -347,8 +469,13 @@ function Sidebar({
 
       if (response.ok) {
         const result = await response.json();
+        
+        // Save the path to recent paths before clearing
+        saveToRecentPaths(newProjectPath.trim());
+        
         setShowNewProject(false);
         setNewProjectPath('');
+        setShowSuggestions(false);
         
         // Refresh projects to show the new one
         if (window.refreshProjects) {
@@ -371,6 +498,7 @@ function Sidebar({
   const cancelNewProject = () => {
     setShowNewProject(false);
     setNewProjectPath('');
+    setShowSuggestions(false);
   };
 
   const loadMoreSessions = async (project) => {
@@ -526,17 +654,96 @@ function Sidebar({
               <FolderPlus className="w-4 h-4" />
               Create New Project
             </div>
-            <Input
-              value={newProjectPath}
-              onChange={(e) => setNewProjectPath(e.target.value)}
-              placeholder="/path/to/project or relative/path"
-              className="text-sm focus:ring-2 focus:ring-primary/20"
-              autoFocus
-              onKeyDown={(e) => {
-                if (e.key === 'Enter') createNewProject();
-                if (e.key === 'Escape') cancelNewProject();
-              }}
-            />
+            <div className="relative">
+              <Input
+                value={newProjectPath}
+                onChange={(e) => setNewProjectPath(e.target.value)}
+                placeholder="/path/to/project or relative/path"
+                className="text-sm focus:ring-2 focus:ring-primary/20"
+                autoFocus
+                onKeyDown={(e) => {
+                  // Handle path dropdown navigation (ChatInterface pattern)
+                  if (showPathDropdown && filteredPaths.length > 0) {
+                    if (e.key === 'ArrowDown') {
+                      e.preventDefault();
+                      setSelectedPathIndex(prev => 
+                        prev < filteredPaths.length - 1 ? prev + 1 : 0
+                      );
+                    } else if (e.key === 'ArrowUp') {
+                      e.preventDefault();
+                      setSelectedPathIndex(prev => 
+                        prev > 0 ? prev - 1 : filteredPaths.length - 1
+                      );
+                    } else if (e.key === 'Enter') {
+                      e.preventDefault();
+                      if (selectedPathIndex >= 0) {
+                        selectPath(filteredPaths[selectedPathIndex]);
+                      } else if (filteredPaths.length > 0) {
+                        selectPath(filteredPaths[0]);
+                      } else {
+                        createNewProject();
+                      }
+                      return;
+                    } else if (e.key === 'Escape') {
+                      e.preventDefault();
+                      setShowPathDropdown(false);
+                      return;
+                    } else if (e.key === 'Tab') {
+                      e.preventDefault();
+                      if (selectedPathIndex >= 0) {
+                        selectPath(filteredPaths[selectedPathIndex]);
+                      } else if (filteredPaths.length > 0) {
+                        selectPath(filteredPaths[0]);
+                      }
+                      return;
+                    }
+                  }
+
+                  // Regular input handling
+                  if (e.key === 'Enter') {
+                    createNewProject();
+                  }
+                  if (e.key === 'Escape') {
+                    cancelNewProject();
+                  }
+                }}
+              />
+              
+              {/* Path dropdown (ChatInterface pattern) */}
+              {showPathDropdown && filteredPaths.length > 0 && (
+                <div className="absolute top-full left-0 right-0 mt-1 bg-popover border border-border rounded-md shadow-lg max-h-48 overflow-y-auto z-50">
+                  {filteredPaths.map((pathItem, index) => (
+                    <div
+                      key={pathItem.path}
+                      className={`px-3 py-2 cursor-pointer border-b border-border last:border-b-0 ${
+                        index === selectedPathIndex
+                          ? 'bg-accent text-accent-foreground'
+                          : 'hover:bg-accent/50'
+                      }`}
+                      onMouseDown={(e) => {
+                        e.preventDefault();
+                        e.stopPropagation();
+                      }}
+                      onClick={(e) => {
+                        e.preventDefault();
+                        e.stopPropagation();
+                        selectPath(pathItem);
+                      }}
+                    >
+                      <div className="flex items-center gap-2">
+                        <Folder className="w-3 h-3 text-muted-foreground flex-shrink-0" />
+                        <div>
+                          <div className="font-medium text-sm">{pathItem.name}</div>
+                          <div className="text-xs text-muted-foreground font-mono">
+                            {pathItem.path}
+                          </div>
+                        </div>
+                      </div>
+                    </div>
+                  ))}
+                </div>
+              )}
+            </div>
             <div className="flex gap-2">
               <Button
                 size="sm"
@@ -580,17 +787,92 @@ function Sidebar({
               </div>
               
               <div className="space-y-3">
-                <Input
-                  value={newProjectPath}
-                  onChange={(e) => setNewProjectPath(e.target.value)}
-                  placeholder="/path/to/project or relative/path"
-                  className="text-sm h-10 rounded-md focus:border-primary transition-colors"
-                  autoFocus
-                  onKeyDown={(e) => {
-                    if (e.key === 'Enter') createNewProject();
-                    if (e.key === 'Escape') cancelNewProject();
-                  }}
-                />
+                <div className="relative">
+                  <Input
+                    value={newProjectPath}
+                    onChange={(e) => setNewProjectPath(e.target.value)}
+                    placeholder="/path/to/project or relative/path"
+                    className="text-sm h-10 rounded-md focus:border-primary transition-colors"
+                    autoFocus
+                    onKeyDown={(e) => {
+                      // Handle path dropdown navigation (same as desktop)
+                      if (showPathDropdown && filteredPaths.length > 0) {
+                        if (e.key === 'ArrowDown') {
+                          e.preventDefault();
+                          setSelectedPathIndex(prev => 
+                            prev < filteredPaths.length - 1 ? prev + 1 : 0
+                          );
+                        } else if (e.key === 'ArrowUp') {
+                          e.preventDefault();
+                          setSelectedPathIndex(prev => 
+                            prev > 0 ? prev - 1 : filteredPaths.length - 1
+                          );
+                        } else if (e.key === 'Enter') {
+                          e.preventDefault();
+                          if (selectedPathIndex >= 0) {
+                            selectPath(filteredPaths[selectedPathIndex]);
+                          } else if (filteredPaths.length > 0) {
+                            selectPath(filteredPaths[0]);
+                          } else {
+                            createNewProject();
+                          }
+                          return;
+                        } else if (e.key === 'Escape') {
+                          e.preventDefault();
+                          setShowPathDropdown(false);
+                          return;
+                        }
+                      }
+
+                      // Regular input handling
+                      if (e.key === 'Enter') {
+                        createNewProject();
+                      }
+                      if (e.key === 'Escape') {
+                        cancelNewProject();
+                      }
+                    }}
+                    style={{
+                      fontSize: '16px', // Prevents zoom on iOS
+                      WebkitAppearance: 'none'
+                    }}
+                  />
+                  
+                  {/* Mobile Path dropdown */}
+                  {showPathDropdown && filteredPaths.length > 0 && (
+                    <div className="absolute bottom-full left-0 right-0 mb-2 bg-popover border border-border rounded-md shadow-lg max-h-40 overflow-y-auto">
+                      {filteredPaths.map((pathItem, index) => (
+                        <div
+                          key={pathItem.path}
+                          className={`px-3 py-2.5 cursor-pointer border-b border-border last:border-b-0 active:scale-95 transition-all ${
+                            index === selectedPathIndex
+                              ? 'bg-accent text-accent-foreground'
+                              : 'hover:bg-accent/50'
+                          }`}
+                          onMouseDown={(e) => {
+                            e.preventDefault();
+                            e.stopPropagation();
+                          }}
+                          onClick={(e) => {
+                            e.preventDefault();
+                            e.stopPropagation();
+                            selectPath(pathItem);
+                          }}
+                        >
+                          <div className="flex items-center gap-2">
+                            <Folder className="w-3 h-3 text-muted-foreground flex-shrink-0" />
+                            <div>
+                              <div className="font-medium text-sm">{pathItem.name}</div>
+                              <div className="text-xs text-muted-foreground font-mono">
+                                {pathItem.path}
+                              </div>
+                            </div>
+                          </div>
+                        </div>
+                      ))}
+                    </div>
+                  )}
+                </div>
                 
                 <div className="flex gap-2">
                   <Button
diff --git a/src/utils/api.js b/src/utils/api.js
index c1ae66a..e3a93d3 100644
--- a/src/utils/api.js
+++ b/src/utils/api.js
@@ -128,6 +128,14 @@ export const api = {
       }),
   },
   
+  // Browse filesystem for project suggestions
+  browseFilesystem: (dirPath = null) => {
+    const params = new URLSearchParams();
+    if (dirPath) params.append('path', dirPath);
+    
+    return authenticatedFetch(`/api/browse-filesystem?${params}`);
+  },
+
   // Generic GET method for any endpoint
   get: (endpoint) => authenticatedFetch(`/api${endpoint}`),
 };
\ No newline at end of file