diff --git a/src/app/gui/editor_layout.cc b/src/app/gui/editor_layout.cc
new file mode 100644
index 00000000..b6058830
--- /dev/null
+++ b/src/app/gui/editor_layout.cc
@@ -0,0 +1,316 @@
+#define IMGUI_DEFINE_MATH_OPERATORS
+
+#include "app/gui/editor_layout.h"
+
+#include "absl/strings/str_format.h"
+#include "app/gui/icons.h"
+#include "app/gui/input.h"
+#include "app/gui/ui_helpers.h"
+#include "app/gui/widgets/widget_id_registry.h"
+#include "imgui/imgui.h"
+#include "imgui/imgui_internal.h"
+
+namespace yaze {
+namespace gui {
+
+// ============================================================================
+// CompactToolbar Implementation
+// ============================================================================
+
+void CompactToolbar::Begin() {
+  // Ultra-compact toolbar with no padding waste
+  ImGui::PushStyleVar(ImGuiStyleVar_FramePadding, ImVec2(6, 3));
+  ImGui::PushStyleVar(ImGuiStyleVar_ItemSpacing, ImVec2(4, 4));
+  ImGui::PushStyleVar(ImGuiStyleVar_WindowPadding, ImVec2(8, 6));
+  
+  ImGui::BeginGroup();
+  in_toolbar_ = true;
+  button_count_ = 0;
+}
+
+void CompactToolbar::End() {
+  ImGui::EndGroup();
+  ImGui::PopStyleVar(3);
+  ImGui::Separator();
+  in_toolbar_ = false;
+}
+
+void CompactToolbar::BeginModeGroup() {
+  // Visual grouping with subtle background - taller for better button visibility
+  ImGui::PushStyleColor(ImGuiCol_ChildBg, ImVec4(0.15f, 0.15f, 0.17f, 0.5f));
+  ImGui::BeginChild("##ModeGroup", ImVec2(0, 40), true,
+                   ImGuiWindowFlags_NoScrollbar);
+}
+
+bool CompactToolbar::ModeButton(const char* icon, bool selected, const char* tooltip) {
+  if (selected) {
+    ImGui::PushStyleColor(ImGuiCol_Button, GetAccentColor());
+  }
+  
+  bool clicked = ImGui::Button(icon, ImVec2(32, 32));  // Larger buttons for better usability
+  
+  if (selected) {
+    ImGui::PopStyleColor();
+  }
+  
+  // Register for test automation
+  if (ImGui::GetItemID() != 0 && tooltip) {
+    std::string button_path = absl::StrFormat("ModeButton:%s", tooltip);
+    WidgetIdRegistry::Instance().RegisterWidget(
+        button_path, "button", ImGui::GetItemID(), tooltip);
+  }
+  
+  if (tooltip && ImGui::IsItemHovered()) {
+    ImGui::SetTooltip("%s", tooltip);
+  }
+  
+  ImGui::SameLine();
+  button_count_++;
+  
+  return clicked;
+}
+
+void CompactToolbar::EndModeGroup() {
+  ImGui::EndChild();
+  ImGui::PopStyleColor();
+  ImGui::SameLine();
+  AddSeparator();
+}
+
+void CompactToolbar::AddSeparator() {
+  ImGui::TextDisabled("|");
+  ImGui::SameLine();
+}
+
+void CompactToolbar::AddRomBadge(uint8_t version, std::function<void()> on_upgrade) {
+  RomVersionBadge(version == 0xFF ? "Vanilla" : 
+                 absl::StrFormat("v%d", version).c_str(), 
+                 version == 0xFF);
+  
+  if (on_upgrade && (version == 0xFF || version < 3)) {
+    ImGui::SameLine();
+    if (ImGui::SmallButton(ICON_MD_UPGRADE)) {
+      on_upgrade();
+    }
+    if (ImGui::IsItemHovered()) {
+      ImGui::SetTooltip("Upgrade to ZSCustomOverworld v3");
+    }
+  }
+  
+  ImGui::SameLine();
+  AddSeparator();
+}
+
+bool CompactToolbar::AddProperty(const char* icon, const char* label,
+                                 uint8_t* value,
+                                 std::function<void()> on_change) {
+  ImGui::Text("%s", icon);
+  ImGui::SameLine();
+  ImGui::SetNextItemWidth(55);
+  
+  bool changed = InputHexByte(label, value);
+  if (changed && on_change) {
+    on_change();
+  }
+  
+  ImGui::SameLine();
+  return changed;
+}
+
+bool CompactToolbar::AddProperty(const char* icon, const char* label,
+                                 uint16_t* value,
+                                 std::function<void()> on_change) {
+  ImGui::Text("%s", icon);
+  ImGui::SameLine();
+  ImGui::SetNextItemWidth(70);
+  
+  bool changed = InputHexWord(label, value);
+  if (changed && on_change) {
+    on_change();
+  }
+  
+  ImGui::SameLine();
+  return changed;
+}
+
+bool CompactToolbar::AddCombo(const char* icon, int* current,
+                             const char* const items[], int count) {
+  ImGui::Text("%s", icon);
+  ImGui::SameLine();
+  ImGui::SetNextItemWidth(110);
+  
+  bool changed = ImGui::Combo("##combo", current, items, count);
+  ImGui::SameLine();
+  
+  return changed;
+}
+
+bool CompactToolbar::AddToggle(const char* icon, bool* state, const char* tooltip) {
+  bool result = ToggleIconButton(icon, icon, state, tooltip);
+  ImGui::SameLine();
+  return result;
+}
+
+bool CompactToolbar::AddAction(const char* icon, const char* tooltip) {
+  bool clicked = ImGui::SmallButton(icon);
+  
+  // Register for test automation
+  if (ImGui::GetItemID() != 0 && tooltip) {
+    std::string button_path = absl::StrFormat("ToolbarAction:%s", tooltip);
+    WidgetIdRegistry::Instance().RegisterWidget(
+        button_path, "button", ImGui::GetItemID(), tooltip);
+  }
+  
+  if (tooltip && ImGui::IsItemHovered()) {
+    ImGui::SetTooltip("%s", tooltip);
+  }
+  
+  ImGui::SameLine();
+  return clicked;
+}
+
+bool CompactToolbar::BeginCollapsibleSection(const char* label, bool* p_open) {
+  ImGui::NewLine();  // Start on new line
+  bool is_open = ImGui::CollapsingHeader(label, ImGuiTreeNodeFlags_None);
+  if (p_open) *p_open = is_open;
+  in_section_ = is_open;
+  return is_open;
+}
+
+void CompactToolbar::EndCollapsibleSection() {
+  in_section_ = false;
+}
+
+void CompactToolbar::AddV3StatusBadge(uint8_t version, std::function<void()> on_settings) {
+  if (version >= 3 && version != 0xFF) {
+    StatusBadge("v3 Active", ButtonType::Success);
+    ImGui::SameLine();
+    if (ImGui::SmallButton(ICON_MD_TUNE " Settings") && on_settings) {
+      on_settings();
+    }
+  } else {
+    StatusBadge("v3 Available", ButtonType::Default);
+    ImGui::SameLine();
+    if (ImGui::SmallButton(ICON_MD_UPGRADE " Upgrade")) {
+      ImGui::OpenPopup("UpgradeROMVersion");
+    }
+  }
+  ImGui::SameLine();
+}
+
+bool CompactToolbar::AddUsageStatsButton(const char* tooltip) {
+  bool clicked = ImGui::SmallButton(ICON_MD_ANALYTICS " Usage");
+  if (tooltip && ImGui::IsItemHovered()) {
+    ImGui::SetTooltip("%s", tooltip);
+  }
+  ImGui::SameLine();
+  return clicked;
+}
+
+// ============================================================================
+// EditorCard Implementation
+// ============================================================================
+
+EditorCard::EditorCard(const char* title, const char* icon)
+    : title_(title), icon_(icon ? icon : ""), default_size_(400, 300) {}
+
+void EditorCard::SetDefaultSize(float width, float height) {
+  default_size_ = ImVec2(width, height);
+}
+
+void EditorCard::SetPosition(Position pos) {
+  position_ = pos;
+}
+
+bool EditorCard::Begin(bool* p_open) {
+  ImGuiWindowFlags flags = ImGuiWindowFlags_None;
+  
+  // Set initial position based on position enum
+  if (first_draw_) {
+    float display_width = ImGui::GetIO().DisplaySize.x;
+    float display_height = ImGui::GetIO().DisplaySize.y;
+    
+    switch (position_) {
+      case Position::Right:
+        ImGui::SetNextWindowPos(ImVec2(display_width - default_size_.x - 10, 30),
+                               ImGuiCond_FirstUseEver);
+        break;
+      case Position::Left:
+        ImGui::SetNextWindowPos(ImVec2(10, 30), ImGuiCond_FirstUseEver);
+        break;
+      case Position::Bottom:
+        ImGui::SetNextWindowPos(
+          ImVec2(10, display_height - default_size_.y - 10),
+          ImGuiCond_FirstUseEver);
+        break;
+      case Position::Floating:
+      case Position::Free:
+        ImGui::SetNextWindowPos(
+          ImVec2(display_width * 0.5f - default_size_.x * 0.5f, 
+                 display_height * 0.3f),
+          ImGuiCond_FirstUseEver);
+        break;
+    }
+    
+    ImGui::SetNextWindowSize(default_size_, ImGuiCond_FirstUseEver);
+    first_draw_ = false;
+  }
+  
+  // Create window title with icon
+  std::string window_title = icon_.empty() ? title_ : icon_ + " " + title_;
+  
+  // Modern card styling
+  ImGui::PushStyleVar(ImGuiStyleVar_WindowRounding, 8.0f);
+  ImGui::PushStyleVar(ImGuiStyleVar_WindowPadding, ImVec2(10, 10));
+  ImGui::PushStyleColor(ImGuiCol_TitleBg, GetThemeColor(ImGuiCol_TitleBg));
+  ImGui::PushStyleColor(ImGuiCol_TitleBgActive, GetAccentColor());
+  
+  bool visible = ImGui::Begin(window_title.c_str(), p_open, flags);
+  
+  // Register card window for test automation
+  if (ImGui::GetCurrentWindow() && ImGui::GetCurrentWindow()->ID != 0) {
+    std::string card_path = absl::StrFormat("EditorCard:%s", title_.c_str());
+    WidgetIdRegistry::Instance().RegisterWidget(
+        card_path, "window", ImGui::GetCurrentWindow()->ID, 
+        absl::StrFormat("Editor card: %s", title_.c_str()));
+  }
+  
+  return visible;
+}
+
+void EditorCard::End() {
+  ImGui::End();
+  ImGui::PopStyleColor(2);
+  ImGui::PopStyleVar(2);
+}
+
+// ============================================================================
+// EditorLayout Implementation
+// ============================================================================
+
+void EditorLayout::Begin() {
+  toolbar_.Begin();
+  in_layout_ = true;
+}
+
+void EditorLayout::End() {
+  toolbar_.End();
+  in_layout_ = false;
+}
+
+void EditorLayout::BeginMainCanvas() {
+  // Main canvas takes remaining space
+  ImGui::BeginChild("##MainCanvas", ImVec2(0, 0), false);
+}
+
+void EditorLayout::EndMainCanvas() {
+  ImGui::EndChild();
+}
+
+void EditorLayout::RegisterCard(EditorCard* card) {
+  cards_.push_back(card);
+}
+
+}  // namespace gui
+}  // namespace yaze
+
diff --git a/src/app/gui/editor_layout.h b/src/app/gui/editor_layout.h
new file mode 100644
index 00000000..c79b46d7
--- /dev/null
+++ b/src/app/gui/editor_layout.h
@@ -0,0 +1,184 @@
+#ifndef YAZE_APP_GUI_EDITOR_LAYOUT_H
+#define YAZE_APP_GUI_EDITOR_LAYOUT_H
+
+#include <functional>
+#include <string>
+#include <vector>
+
+#include "imgui/imgui.h"
+
+namespace yaze {
+namespace gui {
+
+/**
+ * @class CompactToolbar
+ * @brief Ultra-compact toolbar that merges mode buttons with settings
+ * 
+ * Design Philosophy:
+ * - Single horizontal bar with everything inline
+ * - Small icon-only buttons for modes
+ * - Inline property editing (InputHex with scroll)
+ * - No wasted vertical space
+ * - Beautiful, modern appearance
+ * 
+ * Layout: [Mode Icons] | [ROM Badge] [World] [GFX] [Pal] [Spr] ... | [Quick Actions]
+ */
+class CompactToolbar {
+ public:
+  CompactToolbar() = default;
+  
+  // Begin the toolbar
+  void Begin();
+  
+  // End the toolbar
+  void End();
+  
+  // Add mode button group
+  void BeginModeGroup();
+  bool ModeButton(const char* icon, bool selected, const char* tooltip);
+  void EndModeGroup();
+  
+  // Add separator
+  void AddSeparator();
+  
+  // Add ROM version badge
+  void AddRomBadge(uint8_t version, std::function<void()> on_upgrade = nullptr);
+  
+  // Add quick property (inline hex editing)
+  bool AddProperty(const char* icon, const char* label, uint8_t* value,
+                  std::function<void()> on_change = nullptr);
+  bool AddProperty(const char* icon, const char* label, uint16_t* value,
+                  std::function<void()> on_change = nullptr);
+  
+  // Add combo selector
+  bool AddCombo(const char* icon, int* current, const char* const items[], int count);
+  
+  // Add toggle button
+  bool AddToggle(const char* icon, bool* state, const char* tooltip);
+  
+  // Add action button
+  bool AddAction(const char* icon, const char* tooltip);
+  
+  // Add collapsible settings section
+  bool BeginCollapsibleSection(const char* label, bool* p_open);
+  void EndCollapsibleSection();
+  
+  // Add v3 settings indicator
+  void AddV3StatusBadge(uint8_t version, std::function<void()> on_settings);
+  
+  // Add usage statistics button
+  bool AddUsageStatsButton(const char* tooltip);
+  
+  // Get button count for widget registration
+  int GetButtonCount() const { return button_count_; }
+  
+ private:
+  bool in_toolbar_ = false;
+  bool in_section_ = false;
+  int button_count_ = 0;
+};
+
+/**
+ * @class EditorCard
+ * @brief Draggable, dockable card for editor sub-windows
+ * 
+ * Replaces traditional child windows with modern cards that can be:
+ * - Dragged and positioned freely
+ * - Docked to edges (optional)
+ * - Minimized to title bar
+ * - Resized responsively
+ * - Themed beautifully
+ * 
+ * Usage:
+ * ```cpp
+ * EditorCard tile_card("Tile Selector", ICON_MD_GRID_VIEW);
+ * tile_card.SetDefaultSize(300, 400);
+ * tile_card.SetPosition(CardPosition::Right);
+ * 
+ * if (tile_card.Begin()) {
+ *   // Draw tile selector content
+ *   tile_card.End();
+ * }
+ * ```
+ */
+class EditorCard {
+ public:
+  enum class Position {
+    Free,        // Floating window
+    Right,       // Docked to right side
+    Left,        // Docked to left side
+    Bottom,      // Docked to bottom
+    Floating,    // Floating but position saved
+  };
+  
+  EditorCard(const char* title, const char* icon = nullptr);
+  
+  // Set card properties
+  void SetDefaultSize(float width, float height);
+  void SetPosition(Position pos);
+  void SetMinimizable(bool minimizable) { minimizable_ = minimizable; }
+  void SetClosable(bool closable) { closable_ = closable; }
+  
+  // Begin drawing the card
+  bool Begin(bool* p_open = nullptr);
+  
+  // End drawing
+  void End();
+  
+  // Minimize/maximize
+  void SetMinimized(bool minimized) { minimized_ = minimized; }
+  bool IsMinimized() const { return minimized_; }
+  
+ private:
+  std::string title_;
+  std::string icon_;
+  ImVec2 default_size_;
+  Position position_ = Position::Free;
+  bool minimizable_ = true;
+  bool closable_ = true;
+  bool minimized_ = false;
+  bool first_draw_ = true;
+};
+
+/**
+ * @class EditorLayout
+ * @brief Modern layout manager for editor components
+ * 
+ * Manages the overall editor layout with:
+ * - Compact toolbar at top
+ * - Main canvas in center
+ * - Floating/docked cards for tools
+ * - No redundant headers
+ * - Responsive sizing
+ */
+class EditorLayout {
+ public:
+  EditorLayout() = default;
+  
+  // Begin the editor layout
+  void Begin();
+  
+  // End the editor layout
+  void End();
+  
+  // Get toolbar reference
+  CompactToolbar& GetToolbar() { return toolbar_; }
+  
+  // Begin main canvas area
+  void BeginMainCanvas();
+  void EndMainCanvas();
+  
+  // Register a card (for layout management)
+  void RegisterCard(EditorCard* card);
+  
+ private:
+  CompactToolbar toolbar_;
+  std::vector<EditorCard*> cards_;
+  bool in_layout_ = false;
+};
+
+}  // namespace gui
+}  // namespace yaze
+
+#endif  // YAZE_APP_GUI_EDITOR_LAYOUT_H
+
diff --git a/src/app/gui/gui_library.cmake b/src/app/gui/gui_library.cmake
index 019a5a88..74ed1a8c 100644
--- a/src/app/gui/gui_library.cmake
+++ b/src/app/gui/gui_library.cmake
@@ -18,6 +18,7 @@ set(
   app/gui/ui_helpers.cc
   app/gui/toolset.cc
   app/gui/settings_bar.cc
+  app/gui/editor_layout.cc
   # Canvas system components
   app/gui/canvas/canvas_modals.cc
   app/gui/canvas/canvas_context_menu.cc
diff --git a/src/app/gui/ui_helpers.cc b/src/app/gui/ui_helpers.cc
index 1ce5e817..d2bb5d26 100644
--- a/src/app/gui/ui_helpers.cc
+++ b/src/app/gui/ui_helpers.cc
@@ -1,6 +1,5 @@
 #include "app/gui/ui_helpers.h"
 
-#include "absl/strings/str_format.h"
 #include "app/gui/color.h"
 #include "app/gui/icons.h"
 #include "app/gui/theme_manager.h"
@@ -43,21 +42,25 @@ ImVec4 GetAccentColor() {
   return ConvertColorToImVec4(theme.accent);
 }
 
-// Entity/Map marker colors (normalized RGB + proper alpha)
+// Entity/Map marker colors (vibrant with good visibility)
 ImVec4 GetEntranceColor() {
-  return ImVec4(1.0f, 1.0f, 0.0f, 0.39f);  // Yellow, 100/255 alpha
+  // Bright yellow with strong visibility
+  return ImVec4(1.0f, 0.9f, 0.0f, 0.85f);  // Yellow-gold, high visibility
 }
 
 ImVec4 GetExitColor() {
-  return ImVec4(1.0f, 1.0f, 1.0f, 0.59f);  // White, 150/255 alpha
+  // Bright cyan-white for contrast
+  return ImVec4(0.9f, 1.0f, 1.0f, 0.85f);  // Cyan-white, high visibility
 }
 
 ImVec4 GetItemColor() {
-  return ImVec4(1.0f, 0.0f, 0.0f, 0.59f);  // Red, 150/255 alpha
+  // Vibrant red for items
+  return ImVec4(1.0f, 0.2f, 0.2f, 0.85f);  // Bright red, high visibility
 }
 
 ImVec4 GetSpriteColor() {
-  return ImVec4(1.0f, 0.0f, 1.0f, 0.59f);  // Magenta, 150/255 alpha
+  // Bright magenta for sprites  
+  return ImVec4(1.0f, 0.3f, 1.0f, 0.85f);  // Bright magenta, high visibility
 }
 
 ImVec4 GetSelectedColor() {