diff --git a/app/templates/local_workspace.html b/app/templates/local_workspace.html
index 14c8a2b..6d5afc0 100644
--- a/app/templates/local_workspace.html
+++ b/app/templates/local_workspace.html
@@ -19,13 +19,20 @@
 .ws-header h1{font-size:24px;}
 .ws-toolbar{display:flex;gap:8px;}
 
-.ws-item{display:flex;align-items:center;gap:10px;padding:10px 14px;border-radius:8px;cursor:pointer;transition:background 150ms;border:1px solid transparent;}
-.ws-item:hover{background:var(--bg-tertiary);border-color:var(--border);}
-.ws-item .icon{font-size:18px;width:24px;text-align:center;}
-.ws-item .name{flex:1;font-size:14px;color:var(--text);}
-.ws-item .actions{display:flex;gap:4px;opacity:0;transition:opacity 150ms;}
-.ws-item:hover .actions{opacity:1;}
-.ws-act{background:none;border:none;color:var(--text-tertiary);cursor:pointer;padding:4px 8px;border-radius:4px;font-size:12px;}
+.ws-tree{list-style:none;margin:0;padding:0;}
+.ws-tree-item{display:flex;align-items:center;gap:10px;padding:8px 12px;border-radius:6px;cursor:grab;transition:background 150ms;border:1px solid transparent;margin-bottom:2px;}
+.ws-tree-item:hover{background:var(--bg-tertiary);border-color:var(--border);}
+.ws-tree-item.dragging{opacity:.3;}
+.ws-tree-item.drop-target{background:rgba(35,131,226,.1);outline:2px dashed var(--accent);}
+.ws-tree-item .icon{font-size:16px;width:20px;text-align:center;flex-shrink:0;}
+.ws-tree-item .name{flex:1;font-size:14px;color:var(--text);}
+.ws-tree-item .actions{display:none;gap:2px;}
+.ws-tree-item:hover .actions{display:flex;}
+.ws-tree-item .chevron{width:14px;font-size:11px;color:var(--text-tertiary);cursor:pointer;flex-shrink:0;}
+.ws-tree-item .chevron:hover{color:var(--text);}
+.ws-tree-children{margin:0;padding:0;}
+
+.ws-act{background:none;border:none;color:var(--text-tertiary);cursor:pointer;padding:3px 6px;border-radius:4px;font-size:11px;}
 .ws-act:hover{background:var(--bg-hover);color:var(--text);}
 .ws-act.danger:hover{color:var(--danger);}
 
@@ -43,7 +50,6 @@
 .btn-danger{background:rgba(255,80,80,.1);color:var(--danger);}
 .btn-danger:hover{background:rgba(255,80,80,.2);}
 
-/* Modal */
 .modal-overlay{position:fixed;inset:0;background:rgba(0,0,0,.6);display:flex;align-items:center;justify-content:center;z-index:999;backdrop-filter:blur(4px);}
 .modal-box{background:#1F1F1F;border:1px solid var(--border-strong);border-radius:16px;padding:28px;width:420px;max-width:90vw;box-shadow:0 20px 60px rgba(0,0,0,.5);}
 .modal-box h3{font-size:16px;margin-bottom:6px;display:flex;align-items:center;gap:8px;}
@@ -54,7 +60,7 @@
 .delete-confirm{padding:12px;background:rgba(255,80,80,.08);border-radius:8px;margin-top:12px;font-size:13px;color:var(--text-secondary);}
 </style>
 
-<div class="ws-layout" x-data="wsPage()">
+<div class="ws-layout" x-data="wsPage()" @dragover.prevent>
 
   <div class="ws-header">
     <h1>📁 {{ workspace_name }}</h1>
@@ -64,43 +70,54 @@
     </div>
   </div>
 
-  <!-- File/Folder list -->
-  <div x-show="items.length">
-    <template x-for="item in items" :key="item.id">
-      <div class="ws-item">
-        <span class="icon" x-text="item.icon"></span>
-        <span class="name" x-text="item.name" @dblclick="rename(item)"></span>
-        <div class="actions">
-          <button class="ws-act" @click="openItem(item)" title="Open">Open</button>
-          <button class="ws-act" @click="rename(item)" title="Rename">✏️</button>
-          <button class="ws-act danger" @click="confirmDelete(item)" title="Delete">🗑</button>
+  <!-- Recursive tree -->
+  <ul class="ws-tree" x-show="tree.length">
+    <template x-for="node in tree" :key="node.id">
+      <li>
+        <div class="ws-tree-item"
+             :data-id="node.db_id"
+             :data-is-folder="node.is_folder"
+             draggable="true"
+             :style="{paddingLeft: (8 + node.depth * 20) + 'px'}"
+             @dragstart="dragStart($event, node.db_id)"
+             @dragover.prevent="dragOver($event, node.db_id, node.is_folder)"
+             @dragleave="dragLeave($event)"
+             @drop="doDrop($event, node.db_id)">
+          <span class="chevron" x-show="node.is_folder" @click.stop="toggleFolder(node)">▶</span>
+          <span class="icon" x-text="node.icon"></span>
+          <span class="name" x-text="node.name" @dblclick="rename(node)"></span>
+          <div class="actions">
+            <template x-if="node.is_folder">
+              <div style="display:flex;gap:2px;">
+                <button class="ws-act" @click.stop="openCreateModal('file', node)" title="New file">📄</button>
+                <button class="ws-act" @click.stop="openCreateModal('folder', node)" title="New folder">📁</button>
+              </div>
+            </template>
+            <button class="ws-act" @click.stop="openItem(node)" title="Open">Open</button>
+            <button class="ws-act" @click.stop="rename(node)" title="Rename">✏️</button>
+            <button class="ws-act danger" @click.stop="confirmDelete(node)" title="Delete">🗑</button>
+          </div>
         </div>
-      </div>
+      </li>
     </template>
-  </div>
+  </ul>
 
   <!-- Empty state -->
-  <div class="empty-state" x-show="!items.length">
+  <div class="empty-state" x-show="!tree.length">
     <div class="empty-icon">📁</div>
     <h2>Empty workspace</h2>
-    <p>Create a new file to start writing, or a folder to organize your content</p>
+    <p>Create a new file or folder to get started</p>
     <div class="empty-actions">
       <button class="btn btn-primary" @click="openCreateModal('file')">📄 New File</button>
       <button class="btn btn-secondary" @click="openCreateModal('folder')">📁 New Folder</button>
     </div>
   </div>
 
-  <!-- Create Modal (shared for file and folder) -->
+  <!-- Create Modal -->
   <div class="modal-overlay" x-show="showCreateModal" @click.away="showCreateModal=false" @keydown.escape="showCreateModal=false">
     <div class="modal-box">
-      <h3>
-        <span x-text="createType==='folder'?'📁':'📄'"></span>
-        <span x-text="createType==='folder'?'New Folder':'New File'"></span>
-      </h3>
-      <p class="modal-sub">
-        Create in <strong>{{ workspace_name }}</strong>
-        <span x-show="parentFolder"> / <span x-text="parentFolder.name"></span></span>
-      </p>
+      <h3><span x-text="createType==='folder'?'📁':'📄'"></span> <span x-text="createType==='folder'?'New Folder':'New File'"></span></h3>
+      <p class="modal-sub">Create in <strong>{{ workspace_name }}</strong><span x-show="parentFolder"> / <span x-text="parentFolder?.name"></span></span></p>
       <input class="modal-input" x-model="newName" :placeholder="createType==='folder'?'Folder name':'File name'" @keydown.enter="doCreate" x-ref="createInput">
       <div class="modal-actions">
         <button class="btn btn-secondary" @click="showCreateModal=false">Cancel</button>
@@ -122,7 +139,7 @@
     </div>
   </div>
 
-  <!-- Delete Confirm Modal -->
+  <!-- Delete Modal -->
   <div class="modal-overlay" x-show="showDeleteModal" @click.away="showDeleteModal=false" @keydown.escape="showDeleteModal=false">
     <div class="modal-box">
       <h3>🗑 Delete</h3>
@@ -140,15 +157,11 @@
 <script>
 function wsPage() {
   return {
-    items: [],
-    showCreateModal: false,
-    showRenameModal: false,
-    showDeleteModal: false,
-    createType: 'file',
-    newName: '',
-    parentFolder: null,
-    renameTarget: null,
-    deleteTarget: null,
+    tree: [],
+    showCreateModal: false, showRenameModal: false, showDeleteModal: false,
+    createType: 'file', newName: '', parentFolder: null,
+    renameTarget: null, deleteTarget: null,
+    expandedFolders: {},
 
     async init() { await this.load(); },
 
@@ -156,88 +169,87 @@ function wsPage() {
       try {
         const r = await fetch('/api/local-workspace/tree');
         const data = await r.json();
-        const flat = [];
-        for (const node of (data.tree || [])) {
-          flat.push({id:node.id, name:node.name, icon:node.type==='folder'?'📁':'📄', type:node.type, parentId:null});
-          for (const child of (node.children || [])) {
-            flat.push({id:child.id, name:'  '+child.name, icon:'📄', type:'page', parentId:node.id});
-          }
-        }
-        this.items = flat;
+        this.tree = this.flattenTree(data.tree || [], 0);
       } catch(e) { console.error(e); }
     },
 
+    flattenTree(nodes, depth) {
+      const result = [];
+      for (const node of nodes) {
+        result.push({
+          db_id: node.id, name: node.name, icon: node.is_folder ? '📁' : '📄',
+          is_folder: node.is_folder, depth: depth,
+        });
+        if (node.children) {
+          result.push(...this.flattenTree(node.children, depth + 1));
+        }
+      }
+      return result;
+    },
+
+    toggleFolder(node) { /* Future: expand/collapse */ },
+
     openCreateModal(type, parent) {
-      this.createType = type;
-      this.parentFolder = parent || null;
-      this.newName = '';
+      this.createType = type; this.parentFolder = parent || null; this.newName = '';
       this.showCreateModal = true;
-      this.$nextTick(() => {
-        const el = this.$refs.createInput;
-        if (el) setTimeout(() => el.focus(), 100);
-      });
+      this.$nextTick(() => { const el = this.$refs.createInput; if (el) setTimeout(() => el.focus(), 100); });
     },
 
     async doCreate() {
       if (!this.newName.trim()) return;
       const body = { name: this.newName.trim(), type: this.createType };
-      if (this.parentFolder) body.parent_id = this.parentFolder.id;
+      if (this.parentFolder) body.parent_id = this.parentFolder.db_id;
       const r = await fetch('/api/local-workspace/items', {
-        method:'POST', headers:{'Content-Type':'application/json'},
-        body: JSON.stringify(body)
+        method:'POST', headers:{'Content-Type':'application/json'}, body:JSON.stringify(body)
       });
       if (r.ok) {
         this.newName = ''; this.showCreateModal = false; this.parentFolder = null;
         window.location.reload();
-      } else {
-        const e = await r.json();
-        alert(e.error || 'Failed to create');
-      }
+      } else { alert('Failed to create'); }
     },
 
-    async createFileOrFolder(type, name) {
-      // Used by sidebar buttons
-      return await fetch('/api/local-workspace/items', {
-        method:'POST', headers:{'Content-Type':'application/json'},
-        body: JSON.stringify({ name, type })
-      });
-    },
+    openItem(node) { window.location = `/pages/${node.db_id}`; },
 
-    openItem(item) {
-      window.location = `/pages/${item.id}`;
-    },
-
-    rename(item) {
-      this.renameTarget = item;
-      this.newName = item.name.trim();
+    rename(node) {
+      this.renameTarget = node; this.newName = node.name.trim();
       this.showRenameModal = true;
-      this.$nextTick(() => {
-        const el = this.$refs.renameInput;
-        if (el) setTimeout(() => el.focus(), 100);
-      });
+      this.$nextTick(() => { const el = this.$refs.renameInput; if (el) setTimeout(() => el.focus(), 100); });
     },
 
     async doRename() {
       if (!this.newName.trim() || !this.renameTarget) return;
-      await fetch(`/api/local-workspace/items/${this.renameTarget.id}`, {
-        method:'PUT', headers:{'Content-Type':'application/json'},
-        body: JSON.stringify({name:this.newName.trim()})
+      await fetch(`/api/local-workspace/items/${this.renameTarget.db_id}`, {
+        method:'PUT', headers:{'Content-Type':'application/json'}, body:JSON.stringify({name:this.newName.trim()})
       });
       this.showRenameModal = false; this.renameTarget = null; this.newName = '';
       await this.load();
     },
 
-    confirmDelete(item) {
-      this.deleteTarget = item;
-      this.showDeleteModal = true;
-    },
+    confirmDelete(node) { this.deleteTarget = node; this.showDeleteModal = true; },
 
     async doDelete() {
       if (!this.deleteTarget) return;
-      await fetch(`/api/local-workspace/items/${this.deleteTarget.id}`, {method:'DELETE'});
+      await fetch(`/api/local-workspace/items/${this.deleteTarget.db_id}`, {method:'DELETE'});
       this.showDeleteModal = false; this.deleteTarget = null;
       await this.load();
-    }
+    },
+
+    // ── Drag & Drop ──
+    dragStart(ev, id) { ev.dataTransfer.setData('text/plain', id); ev.target.classList.add('dragging'); },
+    dragOver(ev, id, isFolder) { if (isFolder) ev.target.closest('.ws-tree-item')?.classList.add('drop-target'); },
+    dragLeave(ev) { ev.target.closest('.ws-tree-item')?.classList.remove('drop-target'); },
+    async doDrop(ev, targetId) {
+      ev.target.closest('.ws-tree-item')?.classList.remove('drop-target');
+      const draggedId = ev.dataTransfer.getData('text/plain');
+      if (!draggedId || draggedId == targetId) return;
+      const isFolder = ev.target.closest('.ws-tree-item')?.dataset?.isFolder === 'true';
+      const parentId = isFolder && draggedId != targetId ? parseInt(targetId) : null;
+      const r = await fetch(`/api/local-workspace/items/${draggedId}/move`, {
+        method:'PUT', headers:{'Content-Type':'application/json'}, body:JSON.stringify({parent_id: parentId})
+      });
+      if (r.ok) window.location.reload();
+      else alert('Move failed');
+    },
   };
 }
 </script>