diff --git a/Journal.App/src/lib/components/SidePanel.svelte b/Journal.App/src/lib/components/SidePanel.svelte
index 28d36f5..ceda883 100644
--- a/Journal.App/src/lib/components/SidePanel.svelte
+++ b/Journal.App/src/lib/components/SidePanel.svelte
@@ -1,12 +1,14 @@
 <script lang="ts">
+  import { listEntryTemplates, type EntryTemplateItemDto } from "$lib/backend/templates";
   import CalendarWidget from "$lib/components/CalendarWidget.svelte";
-  import { entriesStore } from "$lib/stores/entries";
+  import { entriesBusyStore, entriesStore } from "$lib/stores/entries";
   import { createFragmentDraft, fragmentsStore } from "$lib/stores/fragments";
   import { createListDraft, createListFromLabel, listsStore } from "$lib/stores/lists";
   import { createTodoListDraft, createTodoListFromLabel, serializeTodoList, todoListsStore, todosStore } from "$lib/stores/todos";
 
   export let activeSection = "entries";
   export let activeDocumentId = "";
+  export let templateRefreshToken = 0;
   export let onOpenDocument: (doc: { id: string; label: string; initialContent: string }) => void = () => {};
   export let onEditItem: (doc: { id: string; label: string; initialContent: string }) => void = () => {};
   export let onDeleteItem: (doc: { id: string; label: string }) => void = () => {};
@@ -14,6 +16,7 @@
   let showNewItemInput = false;
   let newItemName = "";
   let newItemInput: HTMLInputElement | null = null;
+  let createTemplateMode = false;
 
   type SidePanelItem = {
     id: string;
@@ -22,6 +25,11 @@
   };
   let todoDocuments: SidePanelItem[] = [];
   let customCalendarEntries: SidePanelItem[] = [];
+  let templateItems: SidePanelItem[] = [];
+  let templatesBusy = false;
+  let templateError = "";
+  let wasEntriesSection = false;
+  let lastTemplateRefreshToken = -1;
 
   const sectionTitles: Record<string, string> = {
     entries: "Entries",
@@ -62,6 +70,37 @@
     selectedCalendarDate = payload;
   }
 
+  function toTemplateStoreId(filePath: string): string {
+    return `entries/template-file/${encodeURIComponent(filePath)}`;
+  }
+
+  function toTemplateLabel(fileName: string): string {
+    return fileName.replace(/\.template\.md$/i, "");
+  }
+
+  function mapTemplateDto(item: EntryTemplateItemDto): SidePanelItem {
+    return {
+      id: toTemplateStoreId(item.filePath),
+      label: toTemplateLabel(item.fileName),
+      initialContent: ""
+    };
+  }
+
+  async function refreshTemplates() {
+    if (activeSection !== "entries") return;
+    templatesBusy = true;
+    templateError = "";
+    try {
+      const templates = await listEntryTemplates();
+      templateItems = templates.map(mapTemplateDto);
+    } catch (error) {
+      templateError = String(error);
+      templateItems = [];
+    } finally {
+      templatesBusy = false;
+    }
+  }
+
   function daysInMonth(year: number, month: number): number {
     return new Date(year, month + 1, 0).getDate();
   }
@@ -126,6 +165,9 @@
 
   function handleAddItem() {
     if (activeSection === "entries" || activeSection === "todos" || activeSection === "lists") {
+      if (activeSection === "entries") {
+        createTemplateMode = false;
+      }
       showNewItemInput = true;
       newItemName = "";
       queueMicrotask(() => newItemInput?.focus());
@@ -158,6 +200,14 @@
     }
   }
 
+  function handleAddTemplate() {
+    if (activeSection !== "entries") return;
+    createTemplateMode = true;
+    showNewItemInput = true;
+    newItemName = "";
+    queueMicrotask(() => newItemInput?.focus());
+  }
+
   async function confirmNewItem() {
     const label = newItemName.trim();
     if (!label) {
@@ -168,10 +218,17 @@
     newItemName = "";
 
     if (activeSection === "entries") {
-      const id = `entries/draft-${Date.now()}`;
-      const item = { id, label, initialContent: `# ${label}\n\n` };
+      const isTemplate = createTemplateMode;
+      const displayLabel = isTemplate
+        ? label.endsWith("_template")
+          ? label
+          : `${label}_template`
+        : label;
+      const id = isTemplate ? `entries/template-draft-${Date.now()}` : `entries/draft-${Date.now()}`;
+      const item = { id, label: displayLabel, initialContent: `# ${displayLabel}\n\n` };
       entriesStore.update((items) => [item, ...items]);
       onEditItem(item);
+      createTemplateMode = false;
     } else if (activeSection === "todos") {
       try {
         const { meta, items: todoItems } = await createTodoListFromLabel(label);
@@ -208,6 +265,7 @@
   function cancelNewItem() {
     showNewItemInput = false;
     newItemName = "";
+    createTemplateMode = false;
   }
 
   function handleNewItemKeydown(event: KeyboardEvent) {
@@ -237,14 +295,38 @@
   $: isCalendarSection = activeSection === "calendar";
   $: calendarEntries = [...customCalendarEntries, ...getCalendarEntries(calendarYear, calendarMonth)];
   $: showItemActions = activeSection === "entries" || activeSection === "todos" || activeSection === "lists" || activeSection === "fragments";
+  $: entryItems = activeSection === "entries"
+    ? $entriesStore.filter((item) => !item.id.startsWith("entries/template-draft-"))
+    : [];
+  $: templateDraftItems = activeSection === "entries"
+    ? $entriesStore.filter((item) => item.id.startsWith("entries/template-draft-"))
+    : [];
+  $: allTemplateItems = [...templateDraftItems, ...templateItems];
+
+  $: if (activeSection === "entries" && (!wasEntriesSection || templateRefreshToken !== lastTemplateRefreshToken)) {
+    wasEntriesSection = true;
+    lastTemplateRefreshToken = templateRefreshToken;
+    void refreshTemplates();
+  }
+
+  $: if (activeSection !== "entries") {
+    wasEntriesSection = false;
+  }
 </script>
 
 <section class="side-panel" aria-label="Section panel">
   <header class="panel-header">
     <h2>{panelTitle}</h2>
-    <button type="button" class="panel-action" aria-label="Add item" on:click={handleAddItem}>
-      <span class="material-symbols-outlined">add</span>
-    </button>
+    <div class="panel-header-actions">
+      {#if activeSection === "entries"}
+        <button type="button" class="panel-action" aria-label="Add template" title="Add template" on:click={handleAddTemplate}>
+          <span class="material-symbols-outlined">palette</span>
+        </button>
+      {/if}
+      <button type="button" class="panel-action" aria-label="Add item" title="Add item" on:click={handleAddItem}>
+        <span class="material-symbols-outlined">add</span>
+      </button>
+    </div>
   </header>
 
   {#if isCalendarSection}
@@ -281,36 +363,111 @@
           type="text"
           bind:this={newItemInput}
           bind:value={newItemName}
-          placeholder={activeSection === "entries" ? "Entry name..." : activeSection === "todos" ? "Todo list name..." : "List name..."}
+          placeholder={activeSection === "entries"
+            ? createTemplateMode
+              ? "Template name..."
+              : "Entry name..."
+            : activeSection === "todos"
+              ? "Todo list name..."
+              : "List name..."}
           on:keydown={handleNewItemKeydown}
           on:blur={confirmNewItem}
         />
       </div>
     {/if}
 
-    <ul class="panel-list">
-      {#each items as item}
-        <li class:is-active={item.id === activeDocumentId}>
-          <button
-            type="button"
-            class="item-label"
-            on:click={() => onOpenDocument(item)}
-          >
-            {item.label}
-          </button>
-          {#if showItemActions}
-            <div class="item-actions">
-              <button type="button" class="item-action" on:click|stopPropagation={() => onEditItem(item)} aria-label="Edit">
-                <span class="material-symbols-outlined">edit</span>
-              </button>
-              <button type="button" class="item-action item-action-danger" on:click|stopPropagation={() => onDeleteItem(item)} aria-label="Delete">
-                <span class="material-symbols-outlined">delete</span>
-              </button>
-            </div>
+    {#if activeSection === "entries"}
+      <div class="panel-subsection">
+        <h3>Entries</h3>
+        {#if $entriesBusyStore}
+          <p class="section-copy">Loading entries...</p>
+        {:else}
+          <ul class="panel-list">
+            {#each entryItems as item}
+              <li class:is-active={item.id === activeDocumentId}>
+                <button
+                  type="button"
+                  class="item-label"
+                  on:click={() => onOpenDocument(item)}
+                >
+                  {item.label}
+                </button>
+                <div class="item-actions">
+                  <button type="button" class="item-action" on:click|stopPropagation={() => onEditItem(item)} aria-label="Edit">
+                    <span class="material-symbols-outlined">edit</span>
+                  </button>
+                  <button type="button" class="item-action item-action-danger" on:click|stopPropagation={() => onDeleteItem(item)} aria-label="Delete">
+                    <span class="material-symbols-outlined">delete</span>
+                  </button>
+                </div>
+              </li>
+            {/each}
+          </ul>
+          {#if !entryItems.length}
+            <p class="section-copy">No entries found.</p>
           {/if}
-        </li>
-      {/each}
-    </ul>
+        {/if}
+      </div>
+
+      <div class="panel-subsection">
+        <h3>Templates</h3>
+        {#if templatesBusy}
+          <p class="section-copy">Loading templates...</p>
+        {:else}
+          <ul class="panel-list">
+            {#each allTemplateItems as item}
+              <li class:is-active={item.id === activeDocumentId}>
+                <button
+                  type="button"
+                  class="item-label"
+                  on:click={() => onOpenDocument(item)}
+                >
+                  {item.label}
+                </button>
+                <div class="item-actions">
+                  <button type="button" class="item-action" on:click|stopPropagation={() => onEditItem(item)} aria-label="Edit">
+                    <span class="material-symbols-outlined">edit</span>
+                  </button>
+                  <button type="button" class="item-action item-action-danger" on:click|stopPropagation={() => onDeleteItem(item)} aria-label="Delete">
+                    <span class="material-symbols-outlined">delete</span>
+                  </button>
+                </div>
+              </li>
+            {/each}
+          </ul>
+          {#if !allTemplateItems.length}
+            <p class="section-copy">No templates found.</p>
+          {/if}
+        {/if}
+        {#if templateError}
+          <p class="template-error">{templateError}</p>
+        {/if}
+      </div>
+    {:else}
+      <ul class="panel-list">
+        {#each items as item}
+          <li class:is-active={item.id === activeDocumentId}>
+            <button
+              type="button"
+              class="item-label"
+              on:click={() => onOpenDocument(item)}
+            >
+              {item.label}
+            </button>
+            {#if showItemActions}
+              <div class="item-actions">
+                <button type="button" class="item-action" on:click|stopPropagation={() => onEditItem(item)} aria-label="Edit">
+                  <span class="material-symbols-outlined">edit</span>
+                </button>
+                <button type="button" class="item-action item-action-danger" on:click|stopPropagation={() => onDeleteItem(item)} aria-label="Delete">
+                  <span class="material-symbols-outlined">delete</span>
+                </button>
+              </div>
+            {/if}
+          </li>
+        {/each}
+      </ul>
+    {/if}
   {/if}
 </section>
 
@@ -332,6 +489,12 @@
     justify-content: space-between;
   }
 
+  .panel-header-actions {
+    display: flex;
+    align-items: center;
+    gap: 6px;
+  }
+
   .panel-header h2 {
     font-size: 0.95rem;
     font-weight: 600;
@@ -481,6 +644,30 @@
     letter-spacing: 0.01em;
   }
 
+  .panel-subsection {
+    display: flex;
+    flex-direction: column;
+    gap: 6px;
+    min-height: 0;
+  }
+
+  .panel-subsection h3 {
+    font-size: 0.78rem;
+    font-weight: 600;
+    color: var(--text-muted);
+    letter-spacing: 0.01em;
+  }
+
+  .section-copy {
+    color: var(--text-dim);
+    font-size: 0.78rem;
+  }
+
+  .template-error {
+    color: #e74c3c;
+    font-size: 0.78rem;
+  }
+
   .new-item-input {
     padding: 0 2px;
 
diff --git a/Journal.App/src/routes/+page.svelte b/Journal.App/src/routes/+page.svelte
index 27f0b88..eeb5987 100644
--- a/Journal.App/src/routes/+page.svelte
+++ b/Journal.App/src/routes/+page.svelte
@@ -2,6 +2,7 @@
   import { goto } from "$app/navigation";
   import { unlockVaultWorkspace } from "$lib/backend/auth";
   import AppModal from "$lib/components/AppModal.svelte";
+  import { deleteEntryTemplate, loadEntryTemplate, saveEntryTemplate } from "$lib/backend/templates";
   import { deleteEntryByStoreId, entriesStore, getDefaultEntry, hydrateEntries, loadEntryByStoreId, saveEntryFromStore } from "$lib/stores/entries";
   import { deleteFragmentByStoreId, hydrateFragments } from "$lib/stores/fragments";
   import { deleteListByStoreId, hydrateLists, updateListByStoreId } from "$lib/stores/lists";
@@ -45,6 +46,25 @@
   let unlockResolver: ((password: string | null) => void) | null = null;
   let fragmentBootstrapInFlight = false;
   let pendingDeleteItemId = "";
+  let templateRefreshToken = 0;
+
+  function toTemplatePath(id: string): string | null {
+    const prefix = "entries/template-file/";
+    if (!id.startsWith(prefix)) return null;
+    const encoded = id.slice(prefix.length).trim();
+    if (!encoded) return null;
+    try {
+      const decoded = decodeURIComponent(encoded);
+      return decoded || null;
+    } catch {
+      return null;
+    }
+  }
+
+  function templateNameFromPath(path: string): string {
+    const fileName = path.split(/[\\/]/).pop() ?? path;
+    return fileName.replace(/\.template\.md$/i, "");
+  }
 
   function showModal(options: {
     action: "logout-confirm" | "logout-info" | "unlock-vault" | "delete-confirm";
@@ -160,6 +180,7 @@
     if (isVaultReady()) {
       try {
         await hydrateEntries();
+        templateRefreshToken += 1;
         const firstEntry = getDefaultEntry(get(entriesStore));
         if (firstEntry && activeDocumentId === "entries/daily-notes") {
           await handleOpenDocument(firstEntry);
@@ -185,6 +206,7 @@
           setVaultSession(password);
 
           await hydrateEntries();
+          templateRefreshToken += 1;
           const firstEntry = getDefaultEntry(get(entriesStore));
           if (firstEntry && activeDocumentId === "entries/daily-notes") {
             await handleOpenDocument(firstEntry);
@@ -211,7 +233,31 @@
     if (!content?.trim()) return;
 
     try {
-      if (selectedSection === "entries" && (activeDocumentId.startsWith("entries/file/") || activeDocumentId.startsWith("entries/draft-"))) {
+      if (selectedSection === "entries" && activeDocumentId.startsWith("entries/template-draft-")) {
+        const draft = get(entriesStore).find((item) => item.id === activeDocumentId);
+        const draftLabel = (draft?.label ?? activeDocumentLabel ?? "").trim();
+        const templateName = draftLabel.replace(/_template$/i, "").trim() || draftLabel;
+        await saveEntryTemplate({
+          name: templateName,
+          content
+        });
+        templateRefreshToken += 1;
+        entriesStore.update((items) => items.filter((item) => item.id !== activeDocumentId));
+        const { [activeDocumentId]: _, ...rest } = openDocuments;
+        openDocuments = rest;
+        activeDocumentId = "";
+        activeDocumentLabel = "";
+        editMode = false;
+      } else if (selectedSection === "entries" && activeDocumentId.startsWith("entries/template-file/")) {
+        const filePath = toTemplatePath(activeDocumentId);
+        if (!filePath) return;
+        await saveEntryTemplate({
+          name: templateNameFromPath(filePath),
+          content,
+          filePath
+        });
+        templateRefreshToken += 1;
+      } else if (selectedSection === "entries" && (activeDocumentId.startsWith("entries/file/") || activeDocumentId.startsWith("entries/draft-"))) {
         const saved = await saveEntryFromStore(activeDocumentId, content, "Overwrite");
         if (saved && saved.id !== activeDocumentId) {
           const { [activeDocumentId]: _, ...rest } = openDocuments;
@@ -281,6 +327,20 @@
       } catch {
         // entry content will use initialContent fallback
       }
+    } else if (selectedSection === "entries" && doc.id.startsWith("entries/template-file/") && !doc.initialContent) {
+      try {
+        const filePath = toTemplatePath(doc.id);
+        if (filePath) {
+          const loaded = await loadEntryTemplate(filePath);
+          resolvedDoc = {
+            id: doc.id,
+            label: loaded.fileName.replace(/\.template\.md$/i, ""),
+            initialContent: loaded.content
+          };
+        }
+      } catch {
+        // template content will use initialContent fallback
+      }
     }
 
     if (!(resolvedDoc.id in openDocuments)) {
@@ -303,7 +363,16 @@
     try {
       let ok = false;
       if (selectedSection === "entries") {
-        ok = await deleteEntryByStoreId(id);
+        const templatePath = toTemplatePath(id);
+        if (templatePath) {
+          ok = await deleteEntryTemplate(templatePath);
+          if (ok) templateRefreshToken += 1;
+        } else if (id.startsWith("entries/template-draft-")) {
+          entriesStore.update((items) => items.filter((item) => item.id !== id));
+          ok = true;
+        } else {
+          ok = await deleteEntryByStoreId(id);
+        }
       } else if (selectedSection === "todos") {
         ok = await deleteTodoListByStoreId(id);
       } else if (selectedSection === "lists") {
@@ -356,6 +425,7 @@
     <SidePanel
       activeSection={selectedSection}
       {activeDocumentId}
+      {templateRefreshToken}
       onOpenDocument={handleOpenDocument}
       onEditItem={handleEditItem}
       onDeleteItem={handleDeleteItem}
@@ -402,4 +472,3 @@
     min-width: 0;
   }
 </style>
-
diff --git a/Journal.App/src/routes/settings/+page.svelte b/Journal.App/src/routes/settings/+page.svelte
index 10a4455..8c387b1 100644
--- a/Journal.App/src/routes/settings/+page.svelte
+++ b/Journal.App/src/routes/settings/+page.svelte
@@ -2,13 +2,6 @@
   import { goto } from "$app/navigation";
   import AppModal from "$lib/components/AppModal.svelte";
   import Navbar from "$lib/components/Navbar.svelte";
-  import {
-    deleteEntryTemplate,
-    listEntryTemplates,
-    loadEntryTemplate,
-    saveEntryTemplate,
-    type EntryTemplateItemDto
-  } from "$lib/backend/templates";
   import {
     addFragmentType,
     addSettingsTag,
@@ -41,12 +34,6 @@
   let sidecarRoot = "";
   let sidecarRootIsCustom = false;
   let sidecarRootError = "";
-  let templates: EntryTemplateItemDto[] = [];
-  let templateName = "";
-  let templateContent = "";
-  let templateFilePath: string | null = null;
-  let templateError = "";
-  let templatesBusy = false;
 
   onMount(async () => {
     try {
@@ -56,8 +43,6 @@
     } catch (e) {
       sidecarRootError = String(e);
     }
-
-    await refreshTemplates();
   });
 
   async function saveSidecarRoot() {
@@ -208,83 +193,6 @@
     }
   }
 
-  async function refreshTemplates() {
-    templatesBusy = true;
-    templateError = "";
-    try {
-      templates = await listEntryTemplates();
-    } catch (error) {
-      templateError = String(error);
-    } finally {
-      templatesBusy = false;
-    }
-  }
-
-  function resetTemplateEditor() {
-    templateName = "";
-    templateContent = "";
-    templateFilePath = null;
-  }
-
-  async function editTemplate(item: EntryTemplateItemDto) {
-    templateError = "";
-    try {
-      const loaded = await loadEntryTemplate(item.filePath);
-      templateFilePath = loaded.filePath;
-      templateName = loaded.fileName.replace(/\.template\.md$/i, "");
-      templateContent = loaded.content;
-    } catch (error) {
-      templateError = String(error);
-    }
-  }
-
-  async function saveTemplate() {
-    templateError = "";
-    if (!templateName.trim()) {
-      templateError = "Template name is required.";
-      return;
-    }
-    if (!templateContent.trim()) {
-      templateError = "Template content is required.";
-      return;
-    }
-
-    try {
-      const wasCreate = !templateFilePath;
-      const saved = await saveEntryTemplate({
-        name: templateName,
-        content: templateContent,
-        filePath: templateFilePath ?? undefined
-      });
-
-      if (wasCreate) {
-        resetTemplateEditor();
-      } else {
-        templateFilePath = saved.filePath;
-      }
-      await refreshTemplates();
-    } catch (error) {
-      templateError = String(error);
-    }
-  }
-
-  async function removeTemplate(item: EntryTemplateItemDto) {
-    templateError = "";
-    try {
-      const ok = await deleteEntryTemplate(item.filePath);
-      if (!ok) {
-        templateError = "Failed to delete template.";
-        return;
-      }
-
-      if (templateFilePath === item.filePath) {
-        resetTemplateEditor();
-      }
-      await refreshTemplates();
-    } catch (error) {
-      templateError = String(error);
-    }
-  }
 </script>
 
 <div class="app-shell panel-closed">
@@ -392,57 +300,6 @@
       </ul>
     </section>
 
-    <section class="route-card">
-      <h2>Entry Templates</h2>
-      <p class="section-copy">Create reusable markdown templates stored as <code>.template.md</code> files in your data directory.</p>
-
-      <div class="template-grid">
-        <div class="template-editor">
-          <input
-            type="text"
-            placeholder="Template name (example: Weekly Review)"
-            bind:value={templateName}
-          />
-          <textarea
-            rows="8"
-            placeholder="Template markdown content"
-            bind:value={templateContent}
-          ></textarea>
-          <div class="row-actions">
-            <button type="button" class="secondary-btn" on:click={saveTemplate}>
-              {templateFilePath ? "Update Template" : "Create Template"}
-            </button>
-            <button type="button" class="ghost-btn" on:click={resetTemplateEditor}>New</button>
-            <button type="button" class="ghost-btn" on:click={refreshTemplates}>Refresh</button>
-          </div>
-        </div>
-
-        <div class="template-list">
-          {#if templatesBusy}
-            <p class="section-copy">Loading templates...</p>
-          {:else if templates.length === 0}
-            <p class="section-copy">No templates found.</p>
-          {:else}
-            <ul class="item-list">
-              {#each templates as item}
-                <li class="item-row">
-                  <span>{item.fileName.replace(/\.template\.md$/i, "")}</span>
-                  <div class="row-actions">
-                    <button type="button" class="ghost-btn" on:click={() => editTemplate(item)}>Edit</button>
-                    <button type="button" class="danger-btn" on:click={() => removeTemplate(item)}>Delete</button>
-                  </div>
-                </li>
-              {/each}
-            </ul>
-          {/if}
-        </div>
-      </div>
-
-      {#if templateError}
-        <p class="error-text">{templateError}</p>
-      {/if}
-    </section>
-
     <section class="route-card">
       <h2>Sidecar</h2>
       <p class="section-copy">Root directory containing the Journal.Sidecar project.</p>
@@ -625,31 +482,4 @@
     color: #e74c3c;
     font-size: 0.82rem;
   }
-
-  .template-grid {
-    display: grid;
-    grid-template-columns: 1fr;
-    gap: 10px;
-  }
-
-  .template-editor {
-    display: flex;
-    flex-direction: column;
-    gap: 8px;
-  }
-
-  .template-editor textarea {
-    border: 1px solid var(--border-soft);
-    border-radius: 7px;
-    background: var(--bg-app);
-    color: var(--text-primary);
-    padding: 8px 9px;
-    resize: vertical;
-  }
-
-  @media (min-width: 980px) {
-    .template-grid {
-      grid-template-columns: 1.2fr 1fr;
-    }
-  }
 </style>