diff --git a/panel/src/components/Layout.tsx b/panel/src/components/Layout.tsx
index 5cd5a97..73c8504 100644
--- a/panel/src/components/Layout.tsx
+++ b/panel/src/components/Layout.tsx
@@ -27,25 +27,165 @@ interface NavItem {
     icon: React.ComponentType<{ className?: string }>;
 }
 
-const adminNavItems: NavItem[] = [
-    { path: "/admin", label: "Dashboard", icon: LayoutDashboard },
-    { path: "/admin/users", label: "Users", icon: Users },
-    { path: "/admin/items", label: "Items", icon: Package },
-    { path: "/admin/classes", label: "Classes", icon: GraduationCap },
-    { path: "/admin/quests", label: "Quests", icon: Scroll },
-    { path: "/admin/lootdrops", label: "Lootdrops", icon: Gift },
-    { path: "/admin/moderation", label: "Moderation", icon: Shield },
-    { path: "/admin/transactions", label: "Transactions", icon: ArrowLeftRight },
-    { path: "/admin/settings", label: "Settings", icon: Settings },
-    { path: "/games", label: "Games", icon: Gamepad2 },
+interface NavGroup {
+    label: string | null;
+    items: NavItem[];
+}
+
+const adminNavGroups: NavGroup[] = [
+    {
+        label: "Administration",
+        items: [
+            { path: "/admin", label: "Dashboard", icon: LayoutDashboard },
+            { path: "/admin/users", label: "Users", icon: Users },
+            { path: "/admin/items", label: "Items", icon: Package },
+            { path: "/admin/classes", label: "Classes", icon: GraduationCap },
+            { path: "/admin/quests", label: "Quests", icon: Scroll },
+            { path: "/admin/lootdrops", label: "Lootdrops", icon: Gift },
+            { path: "/admin/moderation", label: "Moderation", icon: Shield },
+            { path: "/admin/transactions", label: "Transactions", icon: ArrowLeftRight },
+            { path: "/admin/settings", label: "Settings", icon: Settings },
+        ],
+    },
+    {
+        label: "Player",
+        items: [
+            { path: "/dashboard", label: "Dashboard", icon: LayoutDashboard },
+            { path: "/games", label: "Games", icon: Gamepad2 },
+            { path: "/leaderboards", label: "Leaderboards", icon: Trophy },
+        ],
+    },
 ];
 
-const playerNavItems: NavItem[] = [
-    { path: "/dashboard", label: "Dashboard", icon: LayoutDashboard },
-    { path: "/games", label: "Games", icon: Gamepad2 },
-    { path: "/leaderboards", label: "Leaderboards", icon: Trophy },
+const playerNavGroups: NavGroup[] = [
+    {
+        label: null,
+        items: [
+            { path: "/dashboard", label: "Dashboard", icon: LayoutDashboard },
+            { path: "/games", label: "Games", icon: Gamepad2 },
+            { path: "/leaderboards", label: "Leaderboards", icon: Trophy },
+        ],
+    },
 ];
 
+function SidebarNavItem({
+    path,
+    label,
+    icon: Icon,
+    active,
+    showLabel,
+    onNavigate,
+}: NavItem & { active: boolean; showLabel: boolean; onNavigate: (path: string) => void }) {
+    return (
+        <button
+            onClick={() => onNavigate(path)}
+            className={cn(
+                "w-full flex items-center gap-3 rounded-xl px-3 py-2.5 text-sm font-medium transition-colors",
+                active
+                    ? "bg-primary/15 text-primary border-l-4 border-primary"
+                    : "text-text-tertiary hover:bg-primary/8 hover:text-foreground"
+            )}
+        >
+            <Icon className={cn("w-5 h-5 shrink-0", active && "text-primary")} />
+            {showLabel && <span>{label}</span>}
+        </button>
+    );
+}
+
+function SidebarNavSection({
+    group,
+    index,
+    showLabels,
+    isActive,
+    onNavigate,
+}: {
+    group: NavGroup;
+    index: number;
+    showLabels: boolean;
+    isActive: (path: string) => boolean;
+    onNavigate: (path: string) => void;
+}) {
+    return (
+        <div className={cn(index > 0 && "mt-4")}>
+            {group.label && showLabels && (
+                <div className="px-3 pb-1.5 pt-1 text-xs font-semibold uppercase tracking-wider text-text-tertiary/60">
+                    {group.label}
+                </div>
+            )}
+            {!showLabels && index > 0 && (
+                <div className="mx-3 mb-2 border-t border-white/10" />
+            )}
+            <div className="space-y-1">
+                {group.items.map((item) => (
+                    <SidebarNavItem
+                        key={item.path}
+                        {...item}
+                        active={isActive(item.path)}
+                        showLabel={showLabels}
+                        onNavigate={onNavigate}
+                    />
+                ))}
+            </div>
+        </div>
+    );
+}
+
+function SidebarUserProfile({
+    user,
+    showLabels,
+    collapsed,
+    mobileOpen,
+    logout,
+    onToggleCollapse,
+}: {
+    user: AuthUser;
+    showLabels: boolean;
+    collapsed: boolean;
+    mobileOpen: boolean;
+    logout: () => Promise<void>;
+    onToggleCollapse: () => void;
+}) {
+    const avatarUrl = user.avatar
+        ? `https://cdn.discordapp.com/avatars/${user.discordId}/${user.avatar}.png?size=64`
+        : null;
+
+    return (
+        <div className="pt-3 p-3 space-y-2">
+            {showLabels && (
+                <div className="flex items-center gap-3 px-2 py-1.5">
+                    {avatarUrl ? (
+                        <img src={avatarUrl} alt={user.username} className="w-8 h-8 rounded-full" />
+                    ) : (
+                        <div className="w-8 h-8 rounded-full bg-surface flex items-center justify-center text-xs font-medium">
+                            {user.username[0]?.toUpperCase()}
+                        </div>
+                    )}
+                    <div className="flex-1 min-w-0">
+                        <div className="text-sm font-medium truncate">{user.username}</div>
+                    </div>
+                </div>
+            )}
+            <div className={cn("flex", collapsed && !mobileOpen ? "flex-col items-center gap-2" : "items-center justify-between px-2")}>
+                <button
+                    onClick={logout}
+                    className="inline-flex items-center gap-2 rounded-md px-2 py-1.5 text-sm text-text-tertiary hover:text-destructive hover:bg-destructive/10 transition-colors"
+                    title="Sign out"
+                >
+                    <LogOut className="w-4 h-4" />
+                    {showLabels && <span>Sign out</span>}
+                </button>
+                <button
+                    onClick={onToggleCollapse}
+                    className="hidden md:block p-1.5 rounded-md text-text-tertiary hover:text-foreground hover:bg-primary/10 transition-colors"
+                    title={collapsed ? "Expand sidebar" : "Collapse sidebar"}
+                >
+                    {collapsed ? <ChevronRight className="w-4 h-4" /> : <ChevronLeft className="w-4 h-4" />}
+                </button>
+            </div>
+        </div>
+    );
+}
+
 export default function Layout({
     user,
     logout,
@@ -60,11 +200,8 @@ export default function Layout({
     const location = useLocation();
     const navigate = useNavigate();
 
-    const navItems = user.role === "admin" ? adminNavItems : playerNavItems;
-
-    const avatarUrl = user.avatar
-        ? `https://cdn.discordapp.com/avatars/${user.discordId}/${user.avatar}.png?size=64`
-        : null;
+    const navGroups = user.role === "admin" ? adminNavGroups : playerNavGroups;
+    const showLabels = !collapsed || mobileOpen;
 
     // Close mobile drawer on route change
     useEffect(() => {
@@ -83,63 +220,6 @@ export default function Layout({
         setMobileOpen(false);
     }
 
-    const sidebarContent = (
-        <>
-            <nav className="flex-1 py-3 px-2 space-y-1 overflow-y-auto">
-                {navItems.map(({ path, label, icon: Icon }) => (
-                    <button
-                        key={path}
-                        onClick={() => handleNav(path)}
-                        className={cn(
-                            "w-full flex items-center gap-3 rounded-xl px-3 py-2.5 text-sm font-medium transition-colors",
-                            isActive(path)
-                                ? "bg-primary/15 text-primary border-l-4 border-primary"
-                                : "text-text-tertiary hover:bg-primary/8 hover:text-foreground"
-                        )}
-                    >
-                        <Icon className={cn("w-5 h-5 shrink-0", isActive(path) && "text-primary")} />
-                        {(!collapsed || mobileOpen) && <span>{label}</span>}
-                    </button>
-                ))}
-            </nav>
-
-            <div className="pt-3 p-3 space-y-2">
-                {(!collapsed || mobileOpen) && (
-                    <div className="flex items-center gap-3 px-2 py-1.5">
-                        {avatarUrl ? (
-                            <img src={avatarUrl} alt={user.username} className="w-8 h-8 rounded-full" />
-                        ) : (
-                            <div className="w-8 h-8 rounded-full bg-surface flex items-center justify-center text-xs font-medium">
-                                {user.username[0]?.toUpperCase()}
-                            </div>
-                        )}
-                        <div className="flex-1 min-w-0">
-                            <div className="text-sm font-medium truncate">{user.username}</div>
-                        </div>
-                    </div>
-                )}
-                <div className={cn("flex", collapsed && !mobileOpen ? "flex-col items-center gap-2" : "items-center justify-between px-2")}>
-                    <button
-                        onClick={logout}
-                        className="inline-flex items-center gap-2 rounded-md px-2 py-1.5 text-sm text-text-tertiary hover:text-destructive hover:bg-destructive/10 transition-colors"
-                        title="Sign out"
-                    >
-                        <LogOut className="w-4 h-4" />
-                        {(!collapsed || mobileOpen) && <span>Sign out</span>}
-                    </button>
-                    {/* Collapse toggle only on desktop */}
-                    <button
-                        onClick={() => setCollapsed((c) => !c)}
-                        className="hidden md:block p-1.5 rounded-md text-text-tertiary hover:text-foreground hover:bg-primary/10 transition-colors"
-                        title={collapsed ? "Expand sidebar" : "Collapse sidebar"}
-                    >
-                        {collapsed ? <ChevronRight className="w-4 h-4" /> : <ChevronLeft className="w-4 h-4" />}
-                    </button>
-                </div>
-            </div>
-        </>
-    );
-
     return (
         <div className="min-h-screen flex">
             {/* Mobile header bar */}
@@ -165,10 +245,8 @@ export default function Layout({
             <aside
                 className={cn(
                     "fixed inset-y-0 left-0 z-50 flex flex-col bg-surface-container-low transition-all duration-200",
-                    // Mobile: off-screen drawer, shown when mobileOpen
                     "w-60 -translate-x-full md:translate-x-0",
                     mobileOpen && "translate-x-0",
-                    // Desktop: respect collapsed state
                     !mobileOpen && collapsed && "md:w-16"
                 )}
             >
@@ -176,7 +254,6 @@ export default function Layout({
                     <div className="font-display text-xl font-bold tracking-tight">
                         {collapsed && !mobileOpen ? "A" : "Aurora"}
                     </div>
-                    {/* Close button on mobile */}
                     <button
                         onClick={() => setMobileOpen(false)}
                         className="p-1.5 rounded-md text-text-tertiary hover:text-foreground md:hidden"
@@ -185,12 +262,31 @@ export default function Layout({
                     </button>
                 </div>
 
-                {sidebarContent}
+                <nav className="flex-1 py-3 px-2 overflow-y-auto">
+                    {navGroups.map((group, i) => (
+                        <SidebarNavSection
+                            key={i}
+                            group={group}
+                            index={i}
+                            showLabels={showLabels}
+                            isActive={isActive}
+                            onNavigate={handleNav}
+                        />
+                    ))}
+                </nav>
+
+                <SidebarUserProfile
+                    user={user}
+                    showLabels={showLabels}
+                    collapsed={collapsed}
+                    mobileOpen={mobileOpen}
+                    logout={logout}
+                    onToggleCollapse={() => setCollapsed((c) => !c)}
+                />
             </aside>
 
             <main className={cn(
                 "flex-1 transition-all duration-200",
-                // Mobile: no margin, pad for top header bar
                 "mt-14 md:mt-0",
                 collapsed ? "md:ml-16" : "md:ml-60"
             )}>