diff --git a/src/App.jsx b/src/App.jsx
index 0d743be..0ca607a 100644
--- a/src/App.jsx
+++ b/src/App.jsx
@@ -26,7 +26,6 @@ import MainContent from './components/MainContent';
 import MobileNav from './components/MobileNav';
 import Settings from './components/Settings';
 import QuickSettingsPanel from './components/QuickSettingsPanel';
-import VersionUpgradeModal from './components/modals/VersionUpgradeModal';
 
 import { ThemeProvider } from './contexts/ThemeContext';
 import { AuthProvider } from './contexts/AuthContext';
@@ -34,7 +33,6 @@ import { TaskMasterProvider } from './contexts/TaskMasterContext';
 import { TasksSettingsProvider } from './contexts/TasksSettingsContext';
 import { WebSocketProvider, useWebSocket } from './contexts/WebSocketContext';
 import ProtectedRoute from './components/ProtectedRoute';
-import { useVersionCheck } from './hooks/useVersionCheck';
 import useLocalStorage from './hooks/useLocalStorage';
 import { api, authenticatedFetch } from './utils/api';
 import { I18nextProvider, useTranslation } from 'react-i18next';
@@ -51,9 +49,6 @@ function AppContent() {
   const renderCountRef = useRef(0);
   // console.log(`AppContent render count: ${renderCountRef.current++}`);
   
-  const { updateAvailable, latestVersion, currentVersion, releaseInfo } = useVersionCheck('siteboon', 'claudecodeui');
-  const [showVersionModal, setShowVersionModal] = useState(false);
-  
   const [projects, setProjects] = useState([]);
   const [selectedProject, setSelectedProject] = useState(null);
   const [selectedSession, setSelectedSession] = useState(null);
@@ -591,75 +586,25 @@ function AppContent() {
             sidebarVisible ? 'w-80' : 'w-14'
           }`}
         >
-          <div className="h-full overflow-hidden">
-            {sidebarVisible ? (
-              <Sidebar
-                projects={projects}
-                selectedProject={selectedProject}
-                selectedSession={selectedSession}
-                onProjectSelect={handleProjectSelect}
-                onSessionSelect={handleSessionSelect}
-                onNewSession={handleNewSession}
-                onSessionDelete={handleSessionDelete}
-                onProjectDelete={handleProjectDelete}
-                isLoading={isLoadingProjects}
-                loadingProgress={loadingProgress}
-                onRefresh={handleSidebarRefresh}
-                onShowSettings={() => setShowSettings(true)}
-                updateAvailable={updateAvailable}
-                latestVersion={latestVersion}
-                currentVersion={currentVersion}
-                releaseInfo={releaseInfo}
-                onShowVersionModal={() => setShowVersionModal(true)}
-                isPWA={isPWA}
-                isMobile={isMobile}
-                onToggleSidebar={() => setSidebarVisible(false)}
-              />
-            ) : (
-              /* Collapsed Sidebar */
-              <div className="h-full flex flex-col items-center py-4 gap-4">
-                {/* Expand Button */}
-                <button
-                  onClick={() => setSidebarVisible(true)}
-                  className="p-2 hover:bg-accent rounded-md transition-colors duration-200 group"
-                  aria-label={t('versionUpdate.ariaLabels.showSidebar')}
-                  title={t('versionUpdate.ariaLabels.showSidebar')}
-                >
-                  <svg
-                    className="w-5 h-5 text-foreground group-hover:scale-110 transition-transform"
-                    fill="none"
-                    stroke="currentColor"
-                    viewBox="0 0 24 24"
-                  >
-                    <path strokeLinecap="round" strokeLinejoin="round" strokeWidth={2} d="M13 5l7 7-7 7M5 5l7 7-7 7" />
-                  </svg>
-                </button>
-
-                {/* Settings Icon */}
-                <button
-                  onClick={() => setShowSettings(true)}
-                  className="p-2 hover:bg-accent rounded-md transition-colors duration-200"
-                  aria-label={t('versionUpdate.ariaLabels.settings')}
-                  title={t('versionUpdate.ariaLabels.settings')}
-                >
-                  <SettingsIcon className="w-5 h-5 text-muted-foreground hover:text-foreground transition-colors" />
-                </button>
-
-                {/* Update Indicator */}
-                {updateAvailable && (
-                  <button
-                    onClick={() => setShowVersionModal(true)}
-                    className="relative p-2 hover:bg-accent rounded-md transition-colors duration-200"
-                    aria-label={t('versionUpdate.ariaLabels.updateAvailable')}
-                    title={t('versionUpdate.ariaLabels.updateAvailable')}
-                  >
-                    <Sparkles className="w-5 h-5 text-blue-500" />
-                    <span className="absolute top-1 right-1 w-2 h-2 bg-blue-500 rounded-full animate-pulse" />
-                  </button>
-                )}
-              </div>
-            )}
-          </div>
+          <Sidebar
+            projects={projects}
+            selectedProject={selectedProject}
+            selectedSession={selectedSession}
+            onProjectSelect={handleProjectSelect}
+            onSessionSelect={handleSessionSelect}
+            onNewSession={handleNewSession}
+            onSessionDelete={handleSessionDelete}
+            onProjectDelete={handleProjectDelete}
+            isLoading={isLoadingProjects}
+            loadingProgress={loadingProgress}
+            onRefresh={handleSidebarRefresh}
+            onShowSettings={() => setShowSettings(true)}
+            isPWA={isPWA}
+            isMobile={isMobile}
+            onToggleSidebar={() => setSidebarVisible(false)}
+            isCollapsed={!sidebarVisible}
+            onExpandSidebar={() => setSidebarVisible(true)}
+          />
         </div>
       )}
 
@@ -701,14 +646,10 @@ function AppContent() {
               loadingProgress={loadingProgress}
               onRefresh={handleSidebarRefresh}
               onShowSettings={() => setShowSettings(true)}
-              updateAvailable={updateAvailable}
-              latestVersion={latestVersion}
-              currentVersion={currentVersion}
-              releaseInfo={releaseInfo}
-              onShowVersionModal={() => setShowVersionModal(true)}
               isPWA={isPWA}
               isMobile={isMobile}
               onToggleSidebar={() => setSidebarVisible(false)}
+              isCollapsed={false}
             />
           </div>
         </div>
@@ -780,15 +721,6 @@ function AppContent() {
         projects={projects}
         initialTab={settingsInitialTab}
       />
-
-      {/* Version Upgrade Modal */}
-      <VersionUpgradeModal
-        isOpen={showVersionModal}
-        onClose={() => setShowVersionModal(false)}
-        releaseInfo={releaseInfo}
-        currentVersion={currentVersion}
-        latestVersion={latestVersion}
-      />
     </div>
   );
 }
diff --git a/src/components/Sidebar.jsx b/src/components/Sidebar.jsx
index a495cfc..a18e2ec 100644
--- a/src/components/Sidebar.jsx
+++ b/src/components/Sidebar.jsx
@@ -13,6 +13,8 @@ import CursorLogo from './CursorLogo.jsx';
 import CodexLogo from './CodexLogo.jsx';
 import TaskIndicator from './TaskIndicator';
 import ProjectCreationWizard from './ProjectCreationWizard';
+import VersionUpgradeModal from './modals/VersionUpgradeModal';
+import { useVersionCheck } from '../hooks/useVersionCheck';
 import { api } from '../utils/api';
 import { useTaskMaster } from '../contexts/TaskMasterContext';
 import { useTasksSettings } from '../contexts/TasksSettingsContext';
@@ -57,16 +59,14 @@ function Sidebar({
   loadingProgress,
   onRefresh,
   onShowSettings,
-  updateAvailable,
-  latestVersion,
-  currentVersion,
-  releaseInfo,
-  onShowVersionModal,
   isPWA,
   isMobile,
-  onToggleSidebar
+  onToggleSidebar,
+  isCollapsed = false,
+  onExpandSidebar
 }) {
-  const { t } = useTranslation('sidebar');
+  const { t } = useTranslation(['sidebar', 'common']);
+  const { updateAvailable, latestVersion, currentVersion, releaseInfo } = useVersionCheck('siteboon', 'claudecodeui');
   const [expandedProjects, setExpandedProjects] = useState(new Set());
   const [editingProject, setEditingProject] = useState(null);
   const [showNewProject, setShowNewProject] = useState(false);
@@ -84,6 +84,7 @@ function Sidebar({
   const [deletingProjects, setDeletingProjects] = useState(new Set());
   const [deleteConfirmation, setDeleteConfirmation] = useState(null); // { project, sessionCount }
   const [sessionDeleteConfirmation, setSessionDeleteConfirmation] = useState(null); // { projectName, sessionId, sessionTitle, provider }
+  const [showVersionModal, setShowVersionModal] = useState(false);
 
   // TaskMaster context
   const { setCurrentProject, mcpServerStatus } = useTaskMaster();
@@ -493,8 +494,53 @@ function Sidebar({
     setCurrentProject(project);
   };
 
+  const collapsedSidebar = (
+    <div className="h-full flex flex-col items-center py-4 gap-4 bg-card">
+      <button
+        onClick={onExpandSidebar}
+        className="p-2 hover:bg-accent rounded-md transition-colors duration-200 group"
+        aria-label={t('common:versionUpdate.ariaLabels.showSidebar')}
+        title={t('common:versionUpdate.ariaLabels.showSidebar')}
+      >
+        <svg
+          className="w-5 h-5 text-foreground group-hover:scale-110 transition-transform"
+          fill="none"
+          stroke="currentColor"
+          viewBox="0 0 24 24"
+        >
+          <path strokeLinecap="round" strokeLinejoin="round" strokeWidth={2} d="M13 5l7 7-7 7M5 5l7 7-7 7" />
+        </svg>
+      </button>
+
+      <button
+        onClick={onShowSettings}
+        className="p-2 hover:bg-accent rounded-md transition-colors duration-200"
+        aria-label={t('actions.settings')}
+        title={t('actions.settings')}
+      >
+        <Settings className="w-5 h-5 text-muted-foreground hover:text-foreground transition-colors" />
+      </button>
+
+      {updateAvailable && (
+        <button
+          onClick={() => setShowVersionModal(true)}
+          className="relative p-2 hover:bg-accent rounded-md transition-colors duration-200"
+          aria-label={t('common:versionUpdate.ariaLabels.updateAvailable')}
+          title={t('common:versionUpdate.ariaLabels.updateAvailable')}
+        >
+          <Sparkles className="w-5 h-5 text-blue-500" />
+          <span className="absolute top-1 right-1 w-2 h-2 bg-blue-500 rounded-full animate-pulse" />
+        </button>
+      )}
+    </div>
+  );
+
   return (
     <>
+      {isCollapsed ? (
+        collapsedSidebar
+      ) : (
+        <>
       {/* Project Creation Wizard Modal - Rendered via Portal at document root for full-screen on mobile */}
       {showNewProject && ReactDOM.createPortal(
         <ProjectCreationWizard
@@ -1474,7 +1520,7 @@ function Sidebar({
             <Button
               variant="ghost"
               className="w-full justify-start gap-3 p-3 h-auto font-normal text-left hover:bg-blue-50 dark:hover:bg-blue-900/20 transition-colors duration-200 border border-blue-200 dark:border-blue-700 rounded-lg mb-2"
-              onClick={onShowVersionModal}
+              onClick={() => setShowVersionModal(true)}
             >
               <div className="relative">
                 <svg className="w-4 h-4 text-blue-600 dark:text-blue-400" fill="none" stroke="currentColor" viewBox="0 0 24 24">
@@ -1495,7 +1541,7 @@ function Sidebar({
           <div className="md:hidden p-3 pb-2">
             <button
               className="w-full h-12 bg-blue-50 dark:bg-blue-900/20 border border-blue-200 dark:border-blue-700 rounded-xl flex items-center justify-start gap-3 px-4 active:scale-[0.98] transition-all duration-150"
-              onClick={onShowVersionModal}
+              onClick={() => setShowVersionModal(true)}
             >
               <div className="relative">
                 <svg className="w-5 h-5 text-blue-600 dark:text-blue-400" fill="none" stroke="currentColor" viewBox="0 0 24 24">
@@ -1539,7 +1585,18 @@ function Sidebar({
           <span className="text-xs">{t('actions.settings')}</span>
         </Button>
       </div>
+
     </div>
+        </>
+      )}
+
+      <VersionUpgradeModal
+        isOpen={showVersionModal}
+        onClose={() => setShowVersionModal(false)}
+        releaseInfo={releaseInfo}
+        currentVersion={currentVersion}
+        latestVersion={latestVersion}
+      />
     </>
   );
 }