diff --git a/src/gui/src/UI/Settings/UITabPersonalization.js b/src/gui/src/UI/Settings/UITabPersonalization.js
index b5002f3cb1..88009eacc1 100644
--- a/src/gui/src/UI/Settings/UITabPersonalization.js
+++ b/src/gui/src/UI/Settings/UITabPersonalization.js
@@ -48,6 +48,14 @@ export default {
                     <option value="show">${i18n('clock_visible_show')}</option>
                 </select>
             </div>
+            <div class="settings-card">
+                <strong style="flex-grow:1;">Auto-Hide Toolbar</strong>
+                <label class="switch">
+                    <input type="checkbox" class="toggle-toolbar-autohide">
+                    <span class="slider round"></span>
+                </label>
+            </div>
+            
             <div class="settings-card" style="display: block; height: auto;">
                 <strong style="margin: 15px 0 30px; display: block;">${i18n('menubar_style')}</strong>
                 <div style="flex-grow:1; margin-top: 10px;">
@@ -102,6 +110,42 @@ export default {
 
         window.change_clock_visible();
 
+        // ============================================
+        // Toolbar Auto-Hide Toggle Handler
+        // ============================================
+        
+        // Load the current state from KV store and set checkbox
+        puter.kv.get('user_preferences.toolbar_autohide').then(async (val) => {
+            const isEnabled = !!val;
+            $el_window.find('.toggle-toolbar-autohide').prop('checked', isEnabled);
+            
+            // Also sync with the toolbar_autohide state
+            if (window.toolbar_autohide && isEnabled !== window.toolbar_autohide.isEnabled) {
+                if (isEnabled) {
+                    window.toolbar_autohide.enable();
+                } else {
+                    window.toolbar_autohide.disable();
+                }
+            }
+        });
+        
+        // Handle checkbox changes
+        $el_window.find('.toggle-toolbar-autohide').on('change', function(e) {
+            const isEnabled = $(this).is(':checked');
+            if (window.toolbar_autohide) {
+                if (isEnabled) {
+                    window.toolbar_autohide.enable();
+                } else {
+                    window.toolbar_autohide.disable();
+                }
+                // Save preference
+                window.mutate_user_preferences({
+                    toolbar_autohide: isEnabled
+                });
+            }
+        });
+        // ============================================
+
         puter.kv.get('menubar_style').then(async (val) => {
             if(val === 'system' || !val){
                 $el_window.find('#menubar_style_system').prop('checked', true);
@@ -152,4 +196,4 @@ export default {
             }
         })
     },
-};
+};
\ No newline at end of file
diff --git a/src/gui/src/UI/UIDesktop.js b/src/gui/src/UI/UIDesktop.js
index 6b9d619fb6..7099b23259 100644
--- a/src/gui/src/UI/UIDesktop.js
+++ b/src/gui/src/UI/UIDesktop.js
@@ -42,6 +42,7 @@ import UIWindowWelcome from "./UIWindowWelcome.js"
 import launch_app from "../helpers/launch_app.js"
 import item_icon from "../helpers/item_icon.js"
 import UIWindowSearch from "./UIWindowSearch.js"
+import toolbar_autohide from "../helpers/toolbar_autohide.js"
 
 async function UIDesktop(options){
     let h = '';
@@ -1105,7 +1106,7 @@ async function UIDesktop(options){
     let ht = '';
     ht += `<div class="toolbar" style="height:${window.toolbar_height}px; min-height:${window.toolbar_height}px; max-height:${window.toolbar_height}px;">`;
         // logo
-        ht += `<div class="toolbar-btn toolbar-puter-logo" title="Puter" style="margin-left: 10px; margin-right: auto;"><img src="${window.icons['logo-white.svg']}" draggable="false" style="display:block; width:17px; height:17px"></div>`;
+        ht += `<div class="toolbar-btn toolbar-puter-logo" title="Puter"><img src="${window.icons['logo-white.svg']}" draggable="false" style="display:block; width:17px; height:17px"></div>`;
 
         // create account button
         ht += `<div class="toolbar-btn user-options-create-account-btn ${window.user.is_temp ? '' : 'hidden' }" style="padding:0; opacity:1;" title="Save Account">`;
@@ -1145,6 +1146,9 @@ async function UIDesktop(options){
     // prepend toolbar to desktop
     $(ht).insertBefore(el_desktop);
 
+    // initialize toolbar auto-hide functionality
+    toolbar_autohide.init();
+
     // notification container
     $('body').append(`<div class="notification-container"><div class="notifications-close-all">${i18n('close_all')}</div></div>`);
 
diff --git a/src/gui/src/css/style.css b/src/gui/src/css/style.css
index 4c7d1637e2..a0d3df08bd 100644
--- a/src/gui/src/css/style.css
+++ b/src/gui/src/css/style.css
@@ -1736,19 +1736,46 @@ label {
 }
 
 .toolbar {
-    float: right;
-    width: 100%;
-    background-color: #00000040;
+    position: fixed;
+    top: 10px;
+    left: 50%;
+    transform: translateX(-50%);
+    width: auto;
     height: 30px;
-    position: relative;
+    background-color: #00000040;
     z-index: 999999;
     box-sizing: border-box;
     display: flex;
     flex-direction: row;
-    justify-content: flex-end;
+    justify-content: center;
     align-content: center;
-    flex-wrap: wrap;
-    padding-right: 10px
+    align-items: center;
+    flex-wrap: nowrap;
+    padding: 0 15px;
+    gap: 5px;
+    border-radius: 20px;
+    box-shadow: 0 4px 12px rgba(0, 0, 0, 0.15);
+    transition: transform 0.3s ease-in-out, opacity 0.3s ease-in-out;
+}
+
+/* Toolbar hidden state */
+.toolbar.toolbar-hidden {
+    transform: translateX(-50%) translateY(-100%);
+    opacity: 0;
+    pointer-events: none;
+}
+
+/* Toolbar visible state (explicit for clarity) */
+.toolbar.toolbar-visible {
+    transform: translateX(-50%) translateY(0);
+    opacity: 1;
+    pointer-events: all;
+}
+
+/* Toolbar peek state (when mouse is near top) */
+.toolbar.toolbar-peek {
+    transform: translateX(-50%) translateY(0);
+    opacity: 0.6;
 }
 
 .show-desktop-btn {
@@ -4144,6 +4171,63 @@ fieldset[name=number-code] {
     color: #c98900;
 }
 
+/* Toggle Switch */
+.switch {
+    position: relative;
+    display: inline-block;
+    width: 44px;
+    height: 24px;
+    flex-shrink: 0;
+}
+
+.switch input {
+    opacity: 0;
+    width: 0;
+    height: 0;
+}
+
+.slider {
+    position: absolute;
+    cursor: pointer;
+    top: 0;
+    left: 0;
+    right: 0;
+    bottom: 0;
+    background-color: #ccc;
+    transition: 0.3s;
+}
+
+.slider:before {
+    position: absolute;
+    content: "";
+    height: 18px;
+    width: 18px;
+    left: 3px;
+    bottom: 3px;
+    background-color: white;
+    transition: 0.3s;
+}
+
+input:checked + .slider {
+    background-color: #2196F3;
+}
+
+input:focus + .slider {
+    box-shadow: 0 0 1px #2196F3;
+}
+
+input:checked + .slider:before {
+    transform: translateX(20px);
+}
+
+.slider.round {
+    border-radius: 24px;
+}
+
+.slider.round:before {
+    border-radius: 50%;
+}
+
 .error-message {
     display: none;
     color: rgb(215 2 2);
diff --git a/src/gui/src/globals.js b/src/gui/src/globals.js
index a6c0ad105b..b6c4e774fb 100644
--- a/src/gui/src/globals.js
+++ b/src/gui/src/globals.js
@@ -99,6 +99,7 @@ if (window.user_preferences === null) {
         show_hidden_files: false,
         language: navigator.language.split("-")[0] || navigator.userLanguage || 'en',
         clock_visible: 'auto',
+        toolbar_autohide: false, // Add this new preference
     }
 }
 
diff --git a/src/gui/src/helpers/toolbar_autohide.js b/src/gui/src/helpers/toolbar_autohide.js
new file mode 100644
index 0000000000..2e2cd5cd58
--- /dev/null
+++ b/src/gui/src/helpers/toolbar_autohide.js
@@ -0,0 +1,220 @@
+/**
+ * Copyright (C) 2024 Puter Technologies Inc.
+ *
+ * This file is part of Puter.
+ *
+ * Puter is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Affero General Public License as published
+ * by the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ * 
+ * This program is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+ * GNU Affero General Public License for more details.
+ * 
+ * You should have received a copy of the GNU Affero General Public License
+ * along with this program.  If not, see <https://www.gnu.org/licenses/>.
+ */
+
+class ToolbarAutoHide {
+    constructor() {
+        this.hideTimeout = null;
+        this.hideDelay = 2000; // 2 seconds
+        this.proximityThreshold = 50; // pixels from top
+        this.isHidden = false;
+        this.isEnabled = false;
+        this.$toolbar = null;
+        this.lastMouseY = 0;
+        this.isInitialized = false;
+    }
+
+    init() {
+        if (this.isInitialized) return;
+        
+        this.$toolbar = $('.toolbar');
+        
+        if (this.$toolbar.length === 0) {
+            console.warn('Toolbar not found, auto-hide initialization skipped');
+            return;
+        }
+        
+        this.isInitialized = true;
+        
+        // First, check localStorage for initial state
+        const localPref = window.user_preferences?.toolbar_autohide ?? false;
+        this.isEnabled = localPref;
+        
+        // Then load from KV store to get the authoritative state
+        puter.kv.get('user_preferences.toolbar_autohide').then((val) => {
+            const kvEnabled = !!val;
+            
+            // If KV store has a different value, use that
+            if (kvEnabled !== this.isEnabled) {
+                this.isEnabled = kvEnabled;
+                
+                // Update localStorage to match
+                if (window.user_preferences) {
+                    window.user_preferences.toolbar_autohide = kvEnabled;
+                    localStorage.setItem('user_preferences', JSON.stringify(window.user_preferences));
+                }
+            }
+            
+            // Apply the state
+            if (this.isEnabled) {
+                this.enable();
+            } else {
+                // Ensure toolbar is visible by default
+                this.$toolbar.addClass('toolbar-visible');
+            }
+        }).catch((err) => {
+            console.warn('Could not load toolbar autohide preference from KV store:', err);
+            // Fall back to localStorage value
+            if (this.isEnabled) {
+                this.enable();
+            } else {
+                this.$toolbar.addClass('toolbar-visible');
+            }
+        });
+
+        // Add event listeners for toolbar interaction
+        this.$toolbar.on('mouseenter', () => this.onMouseEnterToolbar());
+        this.$toolbar.on('mouseleave', () => this.onMouseLeaveToolbar());
+        
+        // Prevent hiding when interacting with toolbar buttons
+        this.$toolbar.on('click', () => {
+            this.clearHideTimer();
+            this.show();
+        });
+    }
+
+    enable() {
+        this.isEnabled = true;
+        this.$toolbar.addClass('toolbar-autohide-enabled');
+        this.startHideTimer();
+    }
+
+    disable() {
+        this.isEnabled = false;
+        this.show();
+        this.clearHideTimer();
+        this.$toolbar.removeClass('toolbar-autohide-enabled');
+    }
+
+    toggle() {
+        if (this.isEnabled) {
+            this.disable();
+        } else {
+            this.enable();
+        }
+        
+        // Save preference
+        window.mutate_user_preferences({
+            toolbar_autohide: this.isEnabled
+        });
+    }
+
+    startHideTimer() {
+        if (!this.isEnabled) return;
+        
+        this.clearHideTimer();
+        this.hideTimeout = setTimeout(() => {
+            this.hide();
+        }, this.hideDelay);
+    }
+
+    clearHideTimer() {
+        if (this.hideTimeout) {
+            clearTimeout(this.hideTimeout);
+            this.hideTimeout = null;
+        }
+    }
+
+    hide() {
+        if (!this.isEnabled || this.isHidden) return;
+        
+        this.isHidden = true;
+        this.$toolbar.removeClass('toolbar-visible toolbar-peek').addClass('toolbar-hidden');
+        
+        // Adjust layout
+        this.updateLayout(true);
+    }
+
+    show() {
+        if (!this.isHidden && !this.$toolbar.hasClass('toolbar-peek')) return;
+        
+        this.isHidden = false;
+        this.$toolbar.removeClass('toolbar-hidden toolbar-peek').addClass('toolbar-visible');
+        
+        // Adjust layout
+        this.updateLayout(false);
+        
+        // Restart hide timer
+        if (this.isEnabled) {
+            this.startHideTimer();
+        }
+    }
+
+    peek() {
+        if (!this.isEnabled || !this.isHidden) return;
+        
+        this.$toolbar.removeClass('toolbar-hidden').addClass('toolbar-peek');
+    }
+
+    updateLayout(isHidden) {
+        const toolbarHeight = isHidden ? 0 : window.toolbar_height;
+        
+        // Update window container top position
+        $('.window-container').css('top', toolbarHeight);
+        
+        // Update desktop height
+        const taskbarHeight = window.taskbar_height || 0;
+        $('.desktop').css('height', `calc(100vh - ${taskbarHeight + toolbarHeight}px)`);
+        
+        // Update global desktop_height for calculations
+        window.desktop_height = window.innerHeight - taskbarHeight - toolbarHeight;
+    }
+
+    onMouseMove(mouseY) {
+        if (!this.isEnabled || !this.isInitialized) return;
+        
+        this.lastMouseY = mouseY;
+        
+        // Check if mouse is near top of screen
+        if (mouseY <= this.proximityThreshold) {
+            if (this.isHidden) {
+                this.peek();
+            }
+            this.clearHideTimer();
+        } else {
+            if (this.$toolbar.hasClass('toolbar-peek')) {
+                // Mouse moved away from top, hide the peek
+                this.$toolbar.removeClass('toolbar-peek').addClass('toolbar-hidden');
+            } else if (!this.isHidden) {
+                // Restart hide timer when mouse moves away
+                this.startHideTimer();
+            }
+        }
+    }
+
+    onMouseEnterToolbar() {
+        if (!this.isEnabled) return;
+        
+        this.clearHideTimer();
+        this.show();
+    }
+
+    onMouseLeaveToolbar() {
+        if (!this.isEnabled) return;
+        
+        // Only start timer if mouse is not near the top
+        if (this.lastMouseY > this.proximityThreshold) {
+            this.startHideTimer();
+        }
+    }
+}
+
+// Create singleton instance
+window.toolbar_autohide = new ToolbarAutoHide();
+
+export default window.toolbar_autohide;
\ No newline at end of file
diff --git a/src/gui/src/helpers/update_mouse_position.js b/src/gui/src/helpers/update_mouse_position.js
index 7b433180ee..4bdd33c17f 100644
--- a/src/gui/src/helpers/update_mouse_position.js
+++ b/src/gui/src/helpers/update_mouse_position.js
@@ -81,6 +81,14 @@ const update_mouse_position = function(x, y){
     }
     window.mouseover_item_container = active_ic;
 
+    // ============================================
+    // NEW: Toolbar Auto-Hide Integration
+    // ============================================
+    // Update toolbar auto-hide based on mouse position
+    if (window.toolbar_autohide) {
+        window.toolbar_autohide.onMouseMove(y);
+    }
+
 }
 
 export default update_mouse_position;
\ No newline at end of file
diff --git a/src/puter-js/src/modules/KV.js b/src/puter-js/src/modules/KV.js
index d49def1bb4..8512721d2b 100644
--- a/src/puter-js/src/modules/KV.js
+++ b/src/puter-js/src/modules/KV.js
@@ -10,6 +10,7 @@ const gui_cache_keys = [
     'user_preferences.show_hidden_files',
     'user_preferences.language',
     'user_preferences.clock_visible',
+    'user_preferences.toolbar_autohide',
     'has_seen_welcome_window',
 ];