diff --git a/app/templates/local_workspace.html b/app/templates/local_workspace.html
index e943bc4..60ec5f9 100644
--- a/app/templates/local_workspace.html
+++ b/app/templates/local_workspace.html
@@ -278,6 +278,12 @@
 .ctx-tag-item{justify-content:space-between;}
 .ctx-tag-add{color:var(--text-tertiary);font-size:12px;padding:4px 14px;cursor:pointer;}
 .ctx-tag-add:hover{color:var(--accent);}
+.ctx-section{padding:5px 14px;font-size:11px;font-weight:600;color:var(--text-dim);text-transform:uppercase;letter-spacing:.5px;}
+.ctx-tag-color{width:10px;height:10px;border-radius:50%;flex-shrink:0;}
+.color-swatch-ctx{width:18px;height:18px;border-radius:4px;cursor:pointer;border:2px solid transparent;transition:all 100ms;}
+.color-swatch-ctx:hover{transform:scale(1.15);}
+.color-swatch-ctx.selected{border-color:var(--text);box-shadow:0 0 0 2px var(--accent);}
+.ctx-add-tag-item:hover{background:rgba(35,131,226,.08);}
 .ctx-has-sub{justify-content:space-between;}
 
 /* Old view-selector kept for no conflict, but hidden */
@@ -768,25 +774,43 @@
     <div class="ctx-item" @click="ctxMenuRename()">✏️ Rename</div>
     <div class="ctx-item" @click="ctxMenuDuplicate()">📋 Duplicate</div>
     <div class="ctx-sep"></div>
-    <div class="ctx-item ctx-has-sub" @click.stop="ctxTagSub=!ctxTagSub">
-      🏷️ Tags
-      <span style="margin-left:auto">▸</span>
-    </div>
-    <div x-show="ctxTagSub" style="padding:4px 0;">
-      <template x-for="t in (ctxMenu.tags||[])" :key="'ctx-tag'+t.id">
-        <div class="ctx-item ctx-tag-item">
-          <span class="tag-chip" style="margin-right:6px;"><span x-text="t.name"></span></span>
-          <button class="tag-chip rm-btn" @click.stop="ctxRemoveTag(t.id)" title="Remove tag">×</button>
+    <div class="ctx-section">🏷️ Tags</div>
+    <!-- Current tags with remove button -->
+    <template x-for="t in (ctxMenu.tags||[])" :key="'ctx-tag'+t.id">
+      <div class="ctx-item ctx-tag-item">
+        <span class="ctx-tag-color" :style="{background: t.color}"></span>
+        <span style="flex:1;font-size:13px;" x-text="t.name"></span>
+        <button class="tag-chip rm-btn" @click.stop="ctxRemoveTag(t.id)" title="Remove">×</button>
+      </div>
+    </template>
+    <div x-show="(ctxMenu.tags||[]).length === 0" style="padding:2px 14px;font-size:11px;color:var(--text-dim);">No tags</div>
+    <div class="ctx-sep" x-show="ctxAvailTags.length > 0"></div>
+    <!-- Available tags to add -->
+    <div x-show="ctxAvailTags.length > 0" style="padding:0 0 4px;">
+      <div style="padding:2px 14px;font-size:11px;color:var(--text-dim);">Add tag:</div>
+      <template x-for="t in ctxAvailTags" :key="'ctx-avail'+t.id">
+        <div class="ctx-item ctx-add-tag-item" @click.stop="ctxAddExistingTag(t)">
+          <span class="ctx-tag-color" :style="{background: t.color}"></span>
+          <span style="flex:1;font-size:13px;" x-text="t.name"></span>
+          <span style="font-size:10px;color:var(--text-dim);" x-text="t.count||''"></span>
         </div>
       </template>
-      <div class="ctx-tag-add" x-show="!ctxTagAdding" @click.stop="ctxTagAdding=true">+ Add tag</div>
-      <div x-show="ctxTagAdding" style="display:flex;gap:4px;padding:4px 12px;">
-        <input class="tag-input" x-ref="ctxTagInput"
-               @keydown.enter="ctxAddTag($event.target.value); $event.target.value=''"
-               @keydown.escape="ctxTagAdding=false; ctxTagSub=false"
-               @click.stop
-               placeholder="tag name...">
-      </div>
+    </div>
+    <div class="ctx-tag-add" x-show="!ctxTagAdding" @click.stop="ctxTagAdding=true">
+      <span class="ctx-tag-color" style="background:var(--bg-tertiary);border:1px dashed var(--border);"></span>
+      + New tag
+    </div>
+    <div x-show="ctxTagAdding" style="display:flex;align-items:center;gap:4px;padding:4px 14px;">
+      <template x-for="c in ctxTagColors" :key="c">
+        <div class="color-swatch-ctx" :class="{ selected: ctxNewTagColor === c }" 
+             :style="{background: c}" @click.stop="ctxNewTagColor=c"></div>
+      </template>
+      <input class="tag-input" x-ref="ctxTagInput"
+             @keydown.enter="ctxAddNewTag($event.target.value); $event.target.value=''"
+             @keydown.escape="ctxTagAdding=false"
+             @click.stop
+             placeholder="tag name..."
+             style="margin-left:4px;">
     </div>
     <div class="ctx-sep"></div>
     <div class="ctx-item ctx-danger" @click="ctxMenuDelete()">🗑 Delete</div>
@@ -874,8 +898,10 @@ document.addEventListener('alpine:init', function() {
 
     // Context menu
     ctxMenu: {visible:false,x:0,y:0,node:null,tags:[]},
-    ctxTagSub: false,
     ctxTagAdding: false,
+    ctxAvailTags: [],
+    ctxNewTagColor: '#787774',
+    ctxTagColors: ['#787774','#E03E3E','#D9730D','#DFAB01','#0F7B6C','#0B6E99','#6940A5','#AD1A72','#E16259','#D4A72C','#448361','#337EA9','#9065B0','#C94D8B'],
 
     // Tags
     workspaceTags: [],
@@ -1236,8 +1262,16 @@ document.addEventListener('alpine:init', function() {
         node: node,
         tags: [...(node.tags||[])]
       };
-      this.ctxTagSub = false;
       this.ctxTagAdding = false;
+      this.ctxNewTagColor = '#787774';
+      // Load available tags (not already on the item)
+      this.ctxAvailTags = (this.workspaceTags || []).filter(function(t) {
+        return !(node.tags||[]).some(function(nt) { return nt.id === t.id; });
+      });
+    },
+
+    ctxAddExistingTag(tag) {
+      this.ctxAddNewTag(tag.name, tag.color);
     },
 
     ctxMenuOpenPage() {
@@ -1266,14 +1300,19 @@ document.addEventListener('alpine:init', function() {
       var node = this.ctxMenu.node;
       if (!node) return;
       this.removeTag(node.id, tagId);
-      // Update ctxMenu tags
       this.ctxMenu.tags = this.ctxMenu.tags.filter(function(t) { return t.id !== tagId; });
-      this.ctxTagSub = true; // keep sub open
+      // Refresh available tags
+      this.ctxAvailTags = (this.workspaceTags || []).filter(function(t) {
+        return !(this.ctxMenu.tags||[]).some(function(nt) { return nt.id === t.id; });
+      }.bind(this));
     },
 
-    async ctxAddTag(tagName) {
+    async ctxAddNewTag(tagName, color) {
+      tagName = (tagName || '').trim();
+      if (!tagName) return;
       var node = this.ctxMenu.node;
-      if (!node || !tagName) return;
+      if (!node) return;
+      color = color || this.ctxNewTagColor;
       var r = await fetch('/api/local-workspace/items/' + node.id + '/tags', {
         method: 'POST', headers: {'Content-Type':'application/json'},
         body: JSON.stringify({name: tagName.trim()})
@@ -1284,9 +1323,15 @@ document.addEventListener('alpine:init', function() {
         this._updateNodeTags(this.tree, node.id, d.tag, 'add');
         this.displayTree = [...this.tree];
         this.loadWorkspaceTags();
+        // Refresh available tags
+        var self = this;
+        setTimeout(function() { self.loadWorkspaceTags().then(function() {
+          self.ctxAvailTags = (self.workspaceTags || []).filter(function(t) {
+            return !(self.ctxMenu.tags||[]).some(function(nt) { return nt.id === t.id; });
+          });
+        }); }, 200);
       }
       this.ctxTagAdding = false;
-      this.ctxTagSub = true;
     },
 
     _markTree(nodes, depth) {