diff --git a/src/components/NavMenu.vue b/src/components/NavMenu.vue
index f6b1ee7a..805f18f8 100644
--- a/src/components/NavMenu.vue
+++ b/src/components/NavMenu.vue
@@ -302,8 +302,9 @@
     <CustomNavDialog
         v-model:visible="customNavDialogVisible"
         :layout="navLayout"
-        @save="handleCustomNavSave"
-        @reset="handleCustomNavReset" />
+        :hidden-keys="navHiddenKeys"
+        :default-layout="defaultNavLayout"
+        @save="handleCustomNavSave" />
 </template>
 
 <script setup>
@@ -346,7 +347,6 @@
     import {
         useAppearanceSettingsStore,
         useAuthStore,
-        useModalStore,
         useSearchStore,
         useUiStore,
         useVRCXUpdaterStore
@@ -360,7 +360,6 @@
 
     const { t, locale } = useI18n();
     const router = useRouter();
-    const modalStore = useModalStore();
 
     const createDefaultNavLayout = () => [
         { type: 'item', key: 'feed' },
@@ -399,7 +398,23 @@
     ];
 
     const navDefinitionMap = new Map(navDefinitions.map((item) => [item.key, item]));
-    const DEFAULT_FOLDER_ICON = 'ri-menu-fold-line';
+    const DEFAULT_FOLDER_ICON = 'ri-folder-line';
+
+    const normalizeHiddenKeys = (hiddenKeys = []) => {
+        if (!Array.isArray(hiddenKeys)) {
+            return [];
+        }
+        const seen = new Set();
+        const normalized = [];
+        hiddenKeys.forEach((key) => {
+            if (!key || seen.has(key) || !navDefinitionMap.has(key)) {
+                return;
+            }
+            seen.add(key);
+            normalized.push(key);
+        });
+        return normalized;
+    };
 
     const VRCXUpdaterStore = useVRCXUpdaterStore();
     const { pendingVRCXUpdate, pendingVRCXInstall, appVersion } = storeToRefs(VRCXUpdaterStore);
@@ -434,14 +449,7 @@
             if (entry.type === 'folder') {
                 const folderDefinitions = (entry.items || []).map((key) => navDefinitionMap.get(key)).filter(Boolean);
 
-                if (folderDefinitions.length < 2) {
-                    folderDefinitions.forEach((definition) => {
-                        items.push({
-                            ...definition,
-                            index: definition.key,
-                            titleIsCustom: false
-                        });
-                    });
+                if (folderDefinitions.length === 0) {
                     return;
                 }
 
@@ -518,10 +526,17 @@
         }
     );
 
-    const generateFolderId = () => `nav-folder-${dayjs().toISOString()}-${Math.random().toString().slice(2, 4)}`;
+    const generateFolderId = () => {
+        if (typeof crypto !== 'undefined' && typeof crypto.randomUUID === 'function') {
+            return `nav-folder-${crypto.randomUUID()}`;
+        }
+        return `nav-folder-${dayjs().toISOString()}-${Math.random().toString().slice(2, 4)}`;
+    };
 
-    const sanitizeLayout = (layout) => {
+    const sanitizeLayout = (layout, hiddenKeys = []) => {
         const usedKeys = new Set();
+        const normalizedHiddenKeys = normalizeHiddenKeys(hiddenKeys);
+        const hiddenSet = new Set(normalizedHiddenKeys);
         const normalized = [];
         const chartsKeys = ['charts-instance', 'charts-mutual'];
 
@@ -572,7 +587,7 @@
                         usedKeys.add(key);
                     });
 
-                    if (folderItems.length >= 2) {
+                    if (folderItems.length >= 1) {
                         const folderNameKey = entry.nameKey || null;
                         const folderName = folderNameKey ? t(folderNameKey) : entry.name || '';
                         normalized.push({
@@ -583,15 +598,13 @@
                             icon: entry.icon || DEFAULT_FOLDER_ICON,
                             items: folderItems
                         });
-                    } else {
-                        folderItems.forEach((key) => appendItemEntry(key));
                     }
                 }
             });
         }
 
         navDefinitions.forEach((item) => {
-            if (!usedKeys.has(item.key)) {
+            if (!usedKeys.has(item.key) && !hiddenSet.has(item.key)) {
                 if (chartsKeys.includes(item.key)) {
                     return;
                 }
@@ -599,7 +612,7 @@
             }
         });
 
-        if (!chartsKeys.some((key) => usedKeys.has(key))) {
+        if (!chartsKeys.some((key) => usedKeys.has(key)) && !chartsKeys.some((key) => hiddenSet.has(key))) {
             appendChartsFolder();
         }
 
@@ -659,13 +672,17 @@
     };
 
     const customNavDialogVisible = ref(false);
+    const navHiddenKeys = ref([]);
+    const defaultNavLayout = computed(() => sanitizeLayout(createDefaultNavLayout(), []));
 
-    const saveNavLayout = async (layout) => {
+    const saveNavLayout = async (layout, hiddenKeys = []) => {
+        const normalizedHiddenKeys = normalizeHiddenKeys(hiddenKeys);
         try {
             await configRepository.setString(
                 'VRCX_customNavMenuLayoutList',
                 JSON.stringify({
-                    layout
+                    layout,
+                    hiddenKeys: normalizedHiddenKeys
                 })
             );
         } catch (error) {
@@ -677,33 +694,18 @@
         customNavDialogVisible.value = true;
     };
 
-    const handleCustomNavSave = async (layout) => {
-        const sanitized = sanitizeLayout(layout);
+    const handleCustomNavSave = async (layout, hiddenKeys = []) => {
+        const normalizedHiddenKeys = normalizeHiddenKeys(hiddenKeys);
+        const sanitized = sanitizeLayout(layout, normalizedHiddenKeys);
         navLayout.value = sanitized;
-        await saveNavLayout(sanitized);
+        navHiddenKeys.value = normalizedHiddenKeys;
+        await saveNavLayout(sanitized, normalizedHiddenKeys);
         customNavDialogVisible.value = false;
     };
 
-    const handleCustomNavReset = () => {
-        modalStore
-            .confirm({
-                description: t('nav_menu.custom_nav.restore_default_confirm'),
-                title: t('confirm.title'),
-                confirmText: t('nav_menu.custom_nav.restore_default'),
-                cancelText: t('nav_menu.custom_nav.cancel')
-            })
-            .then(async ({ ok }) => {
-                if (!ok) return;
-                const defaults = sanitizeLayout(createDefaultNavLayout());
-                navLayout.value = defaults;
-                await saveNavLayout(defaults);
-                customNavDialogVisible.value = false;
-            })
-            .catch(() => {});
-    };
-
     const loadNavMenuConfig = async () => {
         let layoutData = null;
+        let hiddenKeysData = [];
         try {
             const storedValue = await configRepository.getString('VRCX_customNavMenuLayoutList');
             if (storedValue) {
@@ -712,16 +714,23 @@
                     layoutData = parsed;
                 } else if (Array.isArray(parsed?.layout)) {
                     layoutData = parsed.layout;
+                    hiddenKeysData = Array.isArray(parsed.hiddenKeys) ? parsed.hiddenKeys : [];
                 }
             }
         } catch (error) {
             console.error('Failed to load custom nav', error);
         } finally {
+            const normalizedHiddenKeys = normalizeHiddenKeys(hiddenKeysData);
             const fallbackLayout = layoutData?.length ? layoutData : createDefaultNavLayout();
-            const sanitized = sanitizeLayout(fallbackLayout);
+            const sanitized = sanitizeLayout(fallbackLayout, normalizedHiddenKeys);
             navLayout.value = sanitized;
-            if (layoutData?.length && JSON.stringify(sanitized) !== JSON.stringify(fallbackLayout)) {
-                await saveNavLayout(sanitized);
+            navHiddenKeys.value = normalizedHiddenKeys;
+            if (
+                layoutData?.length &&
+                (JSON.stringify(sanitized) !== JSON.stringify(fallbackLayout) ||
+                    JSON.stringify(normalizedHiddenKeys) !== JSON.stringify(hiddenKeysData))
+            ) {
+                await saveNavLayout(sanitized, normalizedHiddenKeys);
             }
             navLayoutReady.value = true;
             navigateToFirstNavEntry();
diff --git a/src/components/dialogs/CustomNavDialog.vue b/src/components/dialogs/CustomNavDialog.vue
index 0e346d57..6c964ca3 100644
--- a/src/components/dialogs/CustomNavDialog.vue
+++ b/src/components/dialogs/CustomNavDialog.vue
@@ -1,114 +1,88 @@
 <template>
     <Dialog :open="visible" @update:open="(open) => (open ? null : handleClose())">
-        <DialogContent class="custom-nav-dialog sm:min-w-[50vw]">
+        <DialogContent class="sm:min-w-140">
             <DialogHeader>
                 <DialogTitle>{{ t('nav_menu.custom_nav.dialog_title') }}</DialogTitle>
             </DialogHeader>
-            <div class="custom-nav-dialog__list" v-if="localLayout.length">
-                <div
-                    v-for="(entry, index) in localLayout"
-                    :key="entry.key || entry.id"
-                    :class="['custom-nav-entry', `custom-nav-entry--${entry.type}`]">
-                    <template v-if="entry.type === 'item'">
-                        <div class="custom-nav-entry__info">
-                            <i :class="definitionsMap.get(entry.key)?.icon"></i>
-                            <span>{{ t(definitionsMap.get(entry.key)?.labelKey || entry.key) }}</span>
-                        </div>
-                        <div class="custom-nav-entry__controls">
-                            <div class="custom-nav-entry__move">
-                                <Button
-                                    class="rounded-full w-6 h-6 text-xs"
-                                    size="icon-sm"
-                                    variant="outline"
-                                    :disabled="index === 0"
-                                    @click="handleMoveEntry(index, -1)">
-                                    <i class="ri-arrow-up-line"></i>
-                                </Button>
-                                <Button
-                                    class="rounded-full w-6 h-6 text-xs"
-                                    size="icon-sm"
-                                    variant="outline"
-                                    :disabled="index === localLayout.length - 1"
-                                    @click="handleMoveEntry(index, 1)">
-                                    <i class="ri-arrow-down-line"></i>
-                                </Button>
-                            </div>
-                        </div>
-                    </template>
-                    <template v-else>
-                        <div class="custom-nav-entry__folder-header">
-                            <div class="custom-nav-entry__info">
-                                <i :class="entry.icon || defaultFolderIcon"></i>
-                                <span>{{
-                                    entry.name?.trim() || t('nav_menu.custom_nav.folder_name_placeholder')
-                                }}</span>
-                            </div>
-                            <div class="custom-nav-entry__actions">
-                                <Button
-                                    size="icon-sm w-6 h-6 text-xs"
-                                    variant="outline"
-                                    @click="openFolderEditor(index)">
-                                    <i class="ri-edit-box-line"></i>
-                                    {{ t('nav_menu.custom_nav.edit_folder') }}
-                                </Button>
-                                <div class="custom-nav-entry__move">
-                                    <Button
-                                        class="rounded-full text-xs w-6 h-6"
-                                        size="icon-sm"
-                                        variant="outline"
-                                        :disabled="index === 0"
-                                        @click="handleMoveEntry(index, -1)">
-                                        <i class="ri-arrow-up-line"></i>
-                                    </Button>
-                                    <Button
-                                        class="rounded-full text-xs w-6 h-6"
-                                        size="icon-sm"
-                                        variant="outline"
-                                        :disabled="index === localLayout.length - 1"
-                                        @click="handleMoveEntry(index, 1)">
-                                        <i class="ri-arrow-down-line"></i>
-                                    </Button>
-                                </div>
-                            </div>
-                        </div>
-                        <div class="custom-nav-entry__folder-items">
-                            <template v-if="entry.items?.length">
-                                <Badge
-                                    v-for="key in entry.items"
-                                    :key="`${entry.id}-${key}`"
-                                    variant="outline"
-                                    class="custom-nav-entry__folder-tag">
-                                    {{ t(definitionsMap.get(key)?.labelKey || key) }}
-                                </Badge>
+
+            <div class="min-h-[40vh] max-h-[60vh] overflow-y-auto">
+                <DragDropProvider @dragStart="onDragStart" @dragOver="onDragOver" @dragEnd="onDragEnd">
+                    <Tree
+                        :items="treeItems"
+                        :get-key="(item) => item.id"
+                        :get-children="(item) => item.children"
+                        :expanded="expandedKeys"
+                        class="gap-0.5 pr-3"
+                        @update:expanded="(val) => (expandedKeys = val)">
+                        <template #default="{ flattenItems }">
+                            <template v-for="(item, idx) in flattenItems" :key="item._id">
+                                <template v-if="item.value?._placeholder">
+                                    <div
+                                        class="rounded-md border border-dashed border-muted-foreground/25 p-1.5 text-sm text-muted-foreground/50 mt-1">
+                                        {{ t('nav_menu.custom_nav.folder_drop_here') }}
+                                    </div>
+                                </template>
+                                <SortableTreeNode
+                                    v-else
+                                    :item="item"
+                                    :index="getSortableIndex(idx, flattenItems)"
+                                    :definitions-map="definitionsMap"
+                                    :drag-state="dragState"
+                                    @edit-folder="openFolderEditor"
+                                    @delete-folder="handleDeleteFolder"
+                                    @hide="handleHideItem"
+                                    @toggle="handleTreeToggle(item)" />
                             </template>
-                            <span v-else class="custom-nav-entry__folder-empty">
-                                {{ t('nav_menu.custom_nav.folder_empty') }}
-                            </span>
+                        </template>
+                    </Tree>
+                </DragDropProvider>
+
+                <template v-if="hiddenItems.length">
+                    <div class="my-3 flex items-center gap-2 pr-3">
+                        <Separator class="flex-1" />
+                        <span class="text-xs text-muted-foreground">
+                            {{ t('nav_menu.custom_nav.hidden_items') }}
+                        </span>
+                        <Separator class="flex-1" />
+                    </div>
+                    <div class="flex flex-col gap-0.5 pr-3">
+                        <div
+                            v-for="item in hiddenItems"
+                            :key="item.key"
+                            class="group flex cursor-pointer items-center gap-2 rounded-md px-2 py-1.5 text-sm text-muted-foreground"
+                            @click="handleShowItem(item.key)">
+                            <span class="size-4 shrink-0" />
+                            <span class="size-4 shrink-0" />
+                            <i v-if="item.icon" :class="item.icon" class="text-base" />
+                            <span class="flex-1 truncate">{{ item.label }}</span>
+                            <Button
+                                size="icon-sm"
+                                variant="ghost"
+                                class="ml-auto size-6 shrink-0 opacity-0 group-hover:opacity-100"
+                                @click.stop="handleShowItem(item.key)">
+                                <Minus class="size-3.5" />
+                            </Button>
                         </div>
-                    </template>
-                </div>
+                    </div>
+                </template>
             </div>
-            <!-- <el-alert
-                v-if="invalidFolders.length"
-                type="warning"
-                :closable="false"
-                :title="t('nav_menu.custom_nav.invalid_folder')" /> -->
+
             <DialogFooter>
-                <div class="custom-nav-dialog__footer">
-                    <div class="custom-nav-dialog__footer-left">
-                        <Button variant="outline" @click="openFolderEditor()">
-                            {{ t('nav_menu.custom_nav.add_folder') }}
+                <div class="flex w-full items-center justify-between">
+                    <div class="flex gap-2">
+                        <Button variant="outline" @click="handleAddFolder">
+                            {{ t('nav_menu.custom_nav.new_folder') }}
                         </Button>
-                        <Button variant="outline" @click="handleReset">
+                        <Button variant="ghost" class="text-destructive" @click="handleReset">
                             {{ t('nav_menu.custom_nav.restore_default') }}
                         </Button>
                     </div>
-                    <div class="custom-nav-dialog__footer-right">
+                    <div class="flex gap-2">
                         <Button variant="secondary" @click="handleClose">
                             {{ t('nav_menu.custom_nav.cancel') }}
                         </Button>
-                        <Button :disabled="isSaveDisabled" @click="handleSave">
-                            {{ t('nav_menu.custom_nav.save') }}
+                        <Button @click="handleSave">
+                            {{ t('common.actions.confirm') }}
                         </Button>
                     </div>
                 </div>
@@ -117,138 +91,52 @@
     </Dialog>
 
     <Dialog v-model:open="folderEditor.visible">
-        <DialogContent class="folder-editor-dialog sm:max-w-[50vw]">
+        <DialogContent class="sm:max-w-100">
             <DialogHeader>
-                <DialogTitle>
-                    {{
-                        folderEditor.isEditing
-                            ? t('nav_menu.custom_nav.edit_folder')
-                            : t('nav_menu.custom_nav.add_folder')
-                    }}
-                </DialogTitle>
+                <DialogTitle>{{ t('nav_menu.custom_nav.edit_folder') }}</DialogTitle>
             </DialogHeader>
-            <div class="folder-editor">
-                <div class="folder-editor__form">
-                    <InputGroupField
-                        class="col-span-2"
-                        v-model="folderEditor.data.name"
-                        :placeholder="t('nav_menu.custom_nav.folder_name_placeholder')" />
-                    <InputGroupField
-                        class="col-span-2"
-                        v-model="folderEditor.data.icon"
-                        :placeholder="t('nav_menu.custom_nav.folder_icon_placeholder')">
-                        <template #trailing>
-                            <HoverCard>
-                                <HoverCardTrigger as-child>
-                                    <InputGroupButton
-                                        size="icon-xs"
-                                        :aria-label="t('nav_menu.custom_nav.folder_icon_placeholder')">
-                                        <LinkIcon class="size-3.5" />
-                                    </InputGroupButton>
-                                </HoverCardTrigger>
-                                <HoverCardContent side="bottom" align="end" class="w-80">
-                                    <div class="text-sm leading-snug">
-                                        <div>
-                                            Find the icon you want on this site and paste its class name here, e.g.
-                                            <span class="font-mono">ri-arrow-left-up-line</span>
-                                        </div>
-                                        <div class="mt-2">
-                                            <a
-                                                class="cursor-pointer text-blue-600"
-                                                @click.prevent="openExternalLink('https://remixicon.com/')">
-                                                https://remixicon.com/
-                                            </a>
-                                        </div>
+            <div class="flex flex-col gap-3">
+                <InputGroupField
+                    v-model="folderEditor.data.name"
+                    :placeholder="t('nav_menu.custom_nav.folder_name_placeholder')" />
+                <InputGroupField
+                    v-model="folderEditor.data.icon"
+                    :placeholder="t('nav_menu.custom_nav.folder_icon_placeholder')">
+                    <template #trailing>
+                        <HoverCard>
+                            <HoverCardTrigger as-child>
+                                <InputGroupButton
+                                    size="icon-xs"
+                                    :aria-label="t('nav_menu.custom_nav.folder_icon_placeholder')">
+                                    <LinkIcon class="size-3.5" />
+                                </InputGroupButton>
+                            </HoverCardTrigger>
+                            <HoverCardContent side="bottom" align="end" class="w-80">
+                                <div class="text-sm leading-snug">
+                                    <div>
+                                        Find the icon you want on this site and paste its class name here, e.g.
+                                        <span class="font-mono">ri-arrow-left-up-line</span>
+                                    </div>
+                                    <div class="mt-2">
+                                        <a
+                                            class="cursor-pointer text-blue-600"
+                                            @click.prevent="openExternalLink('https://remixicon.com/')">
+                                            https://remixicon.com/
+                                        </a>
                                     </div>
-                                </HoverCardContent>
-                            </HoverCard>
-                        </template>
-                    </InputGroupField>
-                </div>
-                <div class="folder-editor__lists">
-                    <div class="folder-editor__column">
-                        <div class="folder-editor__column-title">
-                            {{ t('nav_menu.custom_nav.folder_available') }}
-                        </div>
-                        <div v-if="!folderEditorAvailableItems.length" class="folder-editor__empty">
-                            {{ t('nav_menu.custom_nav.folder_empty') }}
-                        </div>
-                        <ScrollArea v-else type="always" class="folder-editor__scroll">
-                            <div
-                                v-for="item in folderEditorAvailableItems"
-                                :key="item.key"
-                                class="folder-editor__option">
-                                <label class="folder-editor__option-label">
-                                    <Checkbox
-                                        :model-value="folderEditor.data.items.includes(item.key)"
-                                        @update:modelValue="(val) => toggleFolderItem(item.key, val)" />
-                                    <span>
-                                        <i :class="item.icon"></i>
-                                        {{ t(item.labelKey) }}
-                                    </span>
-                                </label>
-                            </div>
-                        </ScrollArea>
-                    </div>
-                    <div class="folder-editor__column folder-editor__column--selected">
-                        <div class="folder-editor__column-title">
-                            {{ t('nav_menu.custom_nav.folder_selected') }}
-                        </div>
-                        <div v-if="!folderEditor.data.items.length" class="folder-editor__empty">
-                            {{ t('nav_menu.custom_nav.folder_selected_empty') }}
-                        </div>
-                        <div
-                            v-for="(key, index) in folderEditor.data.items"
-                            :key="`selected-${key}`"
-                            class="folder-editor__selected-item">
-                            <div class="folder-editor__selected-label">
-                                <i :class="definitionsMap.get(key)?.icon"></i>
-                                <span>{{ t(definitionsMap.get(key)?.labelKey || key) }}</span>
-                            </div>
-                            <div class="folder-editor__selected-actions">
-                                <div class="custom-nav-entry__move">
-                                    <Button
-                                        class="rounded-full text-xs w-6 h-6"
-                                        size="icon-sm"
-                                        variant="outline"
-                                        :disabled="index === 0"
-                                        @click="handleFolderItemMove(index, -1)">
-                                        <i class="ri-arrow-up-line"></i>
-                                    </Button>
-                                    <Button
-                                        class="rounded-full text-xs w-6 h-6"
-                                        size="icon-sm"
-                                        variant="outline"
-                                        :disabled="index === folderEditor.data.items.length - 1"
-                                        @click="handleFolderItemMove(index, 1)">
-                                        <i class="ri-arrow-down-line"></i>
-                                    </Button>
                                 </div>
-                                <Button size="sm" variant="outline" @click="toggleFolderItem(key, false)">
-                                    {{ t('nav_menu.custom_nav.remove_from_folder') }}
-                                </Button>
-                            </div>
-                        </div>
-                    </div>
-                </div>
+                            </HoverCardContent>
+                        </HoverCard>
+                    </template>
+                </InputGroupField>
             </div>
             <DialogFooter>
-                <div class="folder-editor__footer">
-                    <Button
-                        variant="destructive"
-                        v-if="folderEditor.isEditing"
-                        :disabled="!canDeleteFolder"
-                        @click="handleFolderEditorDelete">
-                        {{ t('nav_menu.custom_nav.delete_folder') }}
-                    </Button>
-                    <div class="folder-editor__footer-spacer"></div>
-                    <Button variant="secondary" class="mr-2" @click="closeFolderEditor">
-                        {{ t('nav_menu.custom_nav.cancel') }}
-                    </Button>
-                    <Button :disabled="folderEditorSaveDisabled" @click="handleFolderEditorSave">
-                        {{ t('nav_menu.custom_nav.save') }}
-                    </Button>
-                </div>
+                <Button variant="secondary" @click="folderEditor.visible = false">
+                    {{ t('nav_menu.custom_nav.cancel') }}
+                </Button>
+                <Button :disabled="!folderEditor.data.name?.trim()" @click="handleFolderEditorSave">
+                    {{ t('common.actions.confirm') }}
+                </Button>
             </DialogFooter>
         </DialogContent>
     </Dialog>
@@ -258,20 +146,21 @@
     import { Dialog, DialogContent, DialogFooter, DialogHeader, DialogTitle } from '@/components/ui/dialog';
     import { computed, reactive, ref, watch } from 'vue';
     import { HoverCard, HoverCardContent, HoverCardTrigger } from '@/components/ui/hover-card';
+    import { Link as LinkIcon, Minus } from 'lucide-vue-next';
     import { Button } from '@/components/ui/button';
-    import { Link as LinkIcon } from 'lucide-vue-next';
+    import { DragDropProvider } from '@dnd-kit/vue';
+    import { isSortable } from '@dnd-kit/vue/sortable';
     import { openExternalLink } from '@/shared/utils/common';
     import { useI18n } from 'vue-i18n';
 
     import dayjs from 'dayjs';
 
     import { InputGroupButton, InputGroupField } from '../ui/input-group';
-    import { Badge } from '../ui/badge';
-    import { Checkbox } from '../ui/checkbox';
-    import { ScrollArea } from '../ui/scroll-area';
+    import { Separator } from '../ui/separator';
+    import { Tree } from '../ui/tree';
     import { navDefinitions } from '../../shared/constants/ui.js';
 
-    // import IconPicker from '../IconPicker.vue';
+    import SortableTreeNode from './SortableTreeNode.vue';
 
     const props = defineProps({
         visible: {
@@ -282,18 +171,21 @@
             type: Array,
             default: () => []
         },
-        defaultFolderIcon: {
-            type: String
+        hiddenKeys: {
+            type: Array,
+            default: () => []
+        },
+        defaultLayout: {
+            type: Array,
+            default: () => []
         }
     });
 
-    const emit = defineEmits(['update:visible', 'save', 'reset']);
+    const emit = defineEmits(['update:visible', 'save']);
     const { t } = useI18n();
 
     const cloneLayout = (source) => {
-        if (!Array.isArray(source)) {
-            return [];
-        }
+        if (!Array.isArray(source)) return [];
         return source.map((entry) => {
             if (entry?.type === 'folder') {
                 return {
@@ -309,420 +201,506 @@
     };
 
     const localLayout = ref(cloneLayout(props.layout));
+    const hiddenKeySet = ref(new Set());
+    const hiddenPlacement = ref(new Map());
+    const DEFAULT_FOLDER_ICON = 'ri-folder-line';
 
     const folderEditor = reactive({
         visible: false,
         isEditing: false,
-        index: -1,
-        data: {
-            id: '',
-            name: '',
-            icon: '',
-            items: []
-        }
+        editingId: null,
+        data: { id: '', name: '', icon: '' }
     });
 
+    const dragState = reactive({
+        active: false,
+        sourceId: null,
+        sourceIsFolder: false,
+        overTargetId: null,
+        overIsFolder: false,
+        lastOverNode: null
+    });
+
+    const createFolderId = () => {
+        if (typeof crypto !== 'undefined' && typeof crypto.randomUUID === 'function') {
+            return `custom-folder-${crypto.randomUUID()}`;
+        }
+        return `custom-folder-${dayjs().toISOString()}-${Math.random().toString().slice(2, 7)}`;
+    };
+
     watch(
         () => props.visible,
         (visible) => {
             if (visible) {
                 localLayout.value = cloneLayout(props.layout);
+                hiddenKeySet.value = new Set(props.hiddenKeys || []);
+                hiddenPlacement.value = new Map();
+                expandedKeys.value = localLayout.value.filter((e) => e.type === 'folder').map((e) => e.id);
             }
         }
     );
 
     const definitionsMap = computed(() => {
         const map = new Map();
-        navDefinitions.forEach((definition) => {
-            if (definition?.key) {
-                map.set(definition.key, definition);
-            }
+        navDefinitions.forEach((def) => {
+            if (def?.key) map.set(def.key, def);
         });
         return map;
     });
 
-    const folderEntries = computed(() => localLayout.value.filter((entry) => entry.type === 'folder'));
+    const treeItems = computed(() => {
+        return localLayout.value.map((entry) => {
+            if (entry.type === 'folder') {
+                const children = (entry.items || [])
+                    .map((key) => {
+                        const def = definitionsMap.value.get(key);
+                        if (!def) return null;
+                        return { id: key, type: 'item', key, level: 1, parentId: entry.id };
+                    })
+                    .filter(Boolean);
 
-    const invalidFolders = computed(() =>
-        folderEntries.value.filter((entry) => !entry.name?.trim() || entry.items?.length < 2)
+                const folderChildren = children.length
+                    ? children
+                    : [{ id: `${entry.id}__placeholder`, _placeholder: true, level: 1 }];
+
+                return {
+                    id: entry.id,
+                    type: 'folder',
+                    name: entry.name,
+                    icon: entry.icon,
+                    level: 0,
+                    children: folderChildren
+                };
+            }
+            return { id: entry.key, type: 'item', key: entry.key, level: 0 };
+        });
+    });
+
+    const expandedKeys = ref([]);
+
+    const hiddenItems = computed(() =>
+        navDefinitions
+            .filter((def) => hiddenKeySet.value.has(def.key))
+            .map((def) => ({
+                key: def.key,
+                icon: def.icon,
+                label: t(def.labelKey)
+            }))
     );
 
-    const isSaveDisabled = computed(() => invalidFolders.value.length > 0);
+    const getSortableIndex = (originalIdx, flattenItems) => {
+        let sortableIdx = 0;
+        for (let i = 0; i < originalIdx; i++) {
+            if (!flattenItems[i]?.value?._placeholder) sortableIdx += 1;
+        }
+        return sortableIdx;
+    };
 
-    const handleMoveEntry = (index, direction) => {
-        const targetIndex = index + direction;
-        if (targetIndex < 0 || targetIndex >= localLayout.value.length) {
+    const handleHideItem = (key) => {
+        let placement = null;
+        for (let i = 0; i < localLayout.value.length; i++) {
+            const entry = localLayout.value[i];
+            if (entry.type === 'item' && entry.key === key) {
+                placement = { parentId: null, index: i };
+                localLayout.value.splice(i, 1);
+                break;
+            }
+            if (entry.type === 'folder') {
+                const idx = entry.items?.indexOf(key);
+                if (idx !== undefined && idx >= 0) {
+                    placement = { parentId: String(entry.id), index: idx };
+                    entry.items.splice(idx, 1);
+                    break;
+                }
+            }
+        }
+        if (placement) {
+            hiddenPlacement.value.set(key, placement);
+        }
+        hiddenKeySet.value.add(key);
+        localLayout.value = [...localLayout.value];
+    };
+
+    const handleShowItem = (key) => {
+        hiddenKeySet.value.delete(key);
+        hiddenKeySet.value = new Set(hiddenKeySet.value);
+        const placement = hiddenPlacement.value.get(key) || null;
+
+        let restored = false;
+        if (placement?.parentId) {
+            const folder = localLayout.value.find(
+                (entry) => entry.type === 'folder' && String(entry.id) === placement.parentId
+            );
+            if (folder) {
+                const insertAt = Math.max(0, Math.min(placement.index, folder.items.length));
+                folder.items.splice(insertAt, 0, key);
+                restored = true;
+            }
+        }
+
+        if (!restored && placement && placement.parentId === null) {
+            const insertAt = Math.max(0, Math.min(placement.index, localLayout.value.length));
+            localLayout.value.splice(insertAt, 0, { type: 'item', key });
+            restored = true;
+        }
+
+        if (!restored) {
+            localLayout.value.push({ type: 'item', key });
+        }
+
+        hiddenPlacement.value.delete(key);
+        localLayout.value = [...localLayout.value];
+    };
+
+    const handleDeleteFolder = (folderId) => {
+        const idx = localLayout.value.findIndex((e) => e.type === 'folder' && e.id === folderId);
+        if (idx < 0) return;
+        const folder = localLayout.value[idx];
+        const childItems = (folder.items || []).map((key) => ({ type: 'item', key }));
+        localLayout.value.splice(idx, 1, ...childItems);
+        localLayout.value = [...localLayout.value];
+    };
+
+    const handleTreeToggle = (item) => {
+        const id = item.value?.id;
+        if (!id) return;
+        if (expandedKeys.value.includes(id)) {
+            expandedKeys.value = expandedKeys.value.filter((k) => k !== id);
+        } else {
+            expandedKeys.value = [...expandedKeys.value, id];
+        }
+    };
+
+    const buildVisibleNodes = () => {
+        const list = [];
+        for (const entry of localLayout.value) {
+            if (entry.type === 'folder') {
+                const folderId = String(entry.id);
+                list.push({ type: 'folder', id: folderId });
+                if (!expandedKeys.value.includes(entry.id)) {
+                    continue;
+                }
+                for (const key of entry.items || []) {
+                    list.push({ type: 'item', id: String(key), key, parentId: folderId });
+                }
+            } else {
+                list.push({ type: 'item', id: String(entry.key), key: entry.key });
+            }
+        }
+        return list;
+    };
+
+    const resolveNodeFromDnDEntity = (entity, nodes, options = {}) => {
+        const { allowIndexFallback = true } = options;
+        if (!entity) return null;
+
+        if (entity.id !== undefined && entity.id !== null) {
+            const rawId = String(entity.id);
+            const normalizedId = rawId.endsWith('__placeholder') ? rawId.slice(0, -'__placeholder'.length) : rawId;
+            const byId = findVisibleNodeById(normalizedId, nodes);
+            if (byId) return byId;
+        }
+
+        if (
+            allowIndexFallback &&
+            typeof entity.index === 'number' &&
+            entity.index >= 0 &&
+            entity.index < nodes.length
+        ) {
+            return nodes[entity.index] || null;
+        }
+
+        return null;
+    };
+
+    const resetDragState = () => {
+        dragState.active = false;
+        dragState.sourceId = null;
+        dragState.sourceIsFolder = false;
+        dragState.overTargetId = null;
+        dragState.overIsFolder = false;
+        dragState.lastOverNode = null;
+    };
+
+    const findVisibleNodeById = (id, nodes = null) => {
+        const normalizedId = String(id);
+        const source = nodes || buildVisibleNodes();
+        return source.find((node) => node.id === normalizedId) || null;
+    };
+
+    const getNodeIndex = (nodes, needle) => {
+        if (!needle) return -1;
+        return nodes.findIndex((node) => {
+            if (node.type !== needle.type) return false;
+            if (node.id !== needle.id) return false;
+            return (node.parentId || null) === (needle.parentId || null);
+        });
+    };
+
+    const onDragStart = (event) => {
+        const { source } = event.operation;
+        if (!source) return;
+
+        const nodes = buildVisibleNodes();
+        const sourceNode = resolveNodeFromDnDEntity(source, nodes);
+        if (!sourceNode) return;
+
+        dragState.active = true;
+        dragState.sourceId = sourceNode.id;
+        dragState.sourceIsFolder = sourceNode.type === 'folder';
+        dragState.lastOverNode = null;
+    };
+
+    const onDragOver = (event) => {
+        const { target } = event.operation;
+        if (!target) {
+            dragState.overTargetId = null;
+            dragState.overIsFolder = false;
             return;
         }
-        const entries = [...localLayout.value];
-        const [entry] = entries.splice(index, 1);
-        entries.splice(targetIndex, 0, entry);
+
+        const nodes = buildVisibleNodes();
+        const rawTargetNode = resolveNodeFromDnDEntity(target, nodes, { allowIndexFallback: false });
+        let targetNode = rawTargetNode;
+
+        // hovering over a folder child maps to its parent folder as top-level target
+        if (dragState.sourceIsFolder && rawTargetNode?.parentId) {
+            const parentFolderNode = findVisibleNodeById(rawTargetNode.parentId, nodes);
+            if (parentFolderNode?.type === 'folder') {
+                targetNode = parentFolderNode;
+            }
+        }
+
+        dragState.overTargetId = targetNode?.id || null;
+        dragState.overIsFolder = targetNode?.type === 'folder' && !dragState.sourceIsFolder;
+        if (!targetNode) return;
+
+        const isSelfTarget = dragState.sourceId && String(targetNode.id) === String(dragState.sourceId);
+        if (isSelfTarget) return;
+
+        if (dragState.sourceIsFolder && targetNode.parentId) return;
+
+        dragState.lastOverNode = {
+            type: targetNode.type,
+            id: String(targetNode.id),
+            parentId: targetNode.parentId ? String(targetNode.parentId) : null
+        };
+    };
+
+    const removeItemFromEntries = (entries, key) => {
+        const normalizedKey = String(key);
+        for (let i = 0; i < entries.length; i++) {
+            const entry = entries[i];
+            if (entry.type === 'item' && String(entry.key) === normalizedKey) {
+                entries.splice(i, 1);
+                return true;
+            }
+            if (entry.type === 'folder') {
+                const idx = entry.items.findIndex((k) => String(k) === normalizedKey);
+                if (idx >= 0) {
+                    entry.items.splice(idx, 1);
+                    return true;
+                }
+            }
+        }
+        return false;
+    };
+
+    const moveItemByTarget = (sourceItemId, targetNode, movingDown) => {
+        const entries = cloneLayout(localLayout.value);
+        const removed = removeItemFromEntries(entries, sourceItemId);
+        if (!removed) return;
+
+        if (!targetNode) {
+            entries.push({ type: 'item', key: sourceItemId });
+            localLayout.value = entries;
+            return;
+        }
+
+        if (targetNode.type === 'folder') {
+            const folder = entries.find((e) => e.type === 'folder' && String(e.id) === targetNode.id);
+            if (!folder) return;
+            folder.items.push(sourceItemId);
+            localLayout.value = entries;
+            return;
+        }
+
+        if (targetNode.parentId) {
+            const folder = entries.find((e) => e.type === 'folder' && String(e.id) === targetNode.parentId);
+            if (!folder) return;
+            const targetIdx = folder.items.findIndex((k) => String(k) === targetNode.id);
+            if (targetIdx < 0) return;
+            const insertAt = targetIdx + (movingDown ? 1 : 0);
+            folder.items.splice(insertAt, 0, sourceItemId);
+            localLayout.value = entries;
+            return;
+        }
+
+        const targetTopIdx = entries.findIndex((e) => e.type === 'item' && String(e.key) === targetNode.id);
+        if (targetTopIdx < 0) return;
+        const insertAt = targetTopIdx + (movingDown ? 1 : 0);
+        entries.splice(insertAt, 0, { type: 'item', key: sourceItemId });
         localLayout.value = entries;
     };
 
-    const folderEditorSaveDisabled = computed(() => {
-        const nameInvalid = !folderEditor.data.name?.trim();
-        const insufficientItems = folderEditor.data.items.length < 2;
-        return nameInvalid || insufficientItems;
-    });
+    const moveFolderByTarget = (sourceFolderId, targetNode, movingDown, allowAppendWhenNoTarget = false) => {
+        const entries = cloneLayout(localLayout.value);
+        const sourceIdx = entries.findIndex((e) => e.type === 'folder' && String(e.id) === sourceFolderId);
+        if (sourceIdx < 0) return;
+        const [folder] = entries.splice(sourceIdx, 1);
 
-    const canDeleteFolder = computed(() => {
-        return localLayout.value[folderEditor.index]?.type === 'folder';
-    });
+        if (targetNode?.parentId) return;
 
-    const usedKeysExcludingEditor = computed(() => {
-        const set = new Set();
-        localLayout.value.forEach((entry) => {
-            if (entry.type !== 'folder') {
-                return;
-            }
-            if (folderEditor.isEditing && entry.id === folderEditor.data.id) {
-                return;
-            }
-            entry.items?.forEach((key) => set.add(key));
-        });
-        return set;
-    });
-
-    const folderEditorAvailableItems = computed(() =>
-        navDefinitions.filter(
-            (definition) =>
-                !usedKeysExcludingEditor.value.has(definition.key) || folderEditor.data.items.includes(definition.key)
-        )
-    );
-
-    const openFolderEditor = (index) => {
-        const isEditing = index !== undefined && index !== null;
-        folderEditor.isEditing = isEditing;
-        folderEditor.index = isEditing ? index : -1;
-        if (folderEditor.isEditing) {
-            const entry = localLayout.value[index];
-            folderEditor.data = {
-                id: entry.id,
-                name: entry.name,
-                icon: entry.icon,
-                items: Array.isArray(entry.items) ? [...entry.items] : []
-            };
-        } else {
-            folderEditor.data = {
-                id: `custom-folder-${dayjs().toISOString()}-${Math.random().toString().slice(2, 7)}`,
-                name: '',
-                icon: '',
-                items: []
-            };
+        if (!targetNode) {
+            if (!allowAppendWhenNoTarget) return;
+            entries.push(folder);
+            localLayout.value = entries;
+            return;
         }
+
+        const targetTopIdx = entries.findIndex((e) => {
+            if (targetNode.type === 'folder') {
+                return e.type === 'folder' && String(e.id) === targetNode.id;
+            }
+            return e.type === 'item' && String(e.key) === targetNode.id;
+        });
+        if (targetTopIdx < 0) return;
+
+        const insertAt = targetTopIdx + (movingDown ? 1 : 0);
+        entries.splice(insertAt, 0, folder);
+        localLayout.value = entries;
+    };
+
+    const onDragEnd = (event) => {
+        const sourceIdSnapshot = dragState.sourceId ? String(dragState.sourceId) : null;
+        const sourceIsFolderSnapshot = !!dragState.sourceIsFolder;
+        const wasOverFolder = dragState.overIsFolder;
+        const overTargetId = dragState.overTargetId ? String(dragState.overTargetId) : null;
+        const lastOverNodeSnapshot = dragState.lastOverNode
+            ? {
+                  type: dragState.lastOverNode.type,
+                  id: String(dragState.lastOverNode.id),
+                  parentId: dragState.lastOverNode.parentId ? String(dragState.lastOverNode.parentId) : null
+              }
+            : null;
+
+        resetDragState();
+
+        if (event.canceled) return;
+
+        const { source, target } = event.operation;
+        if (!isSortable(source)) return;
+
+        const visibleNodes = buildVisibleNodes();
+        const sourceNode =
+            (sourceIdSnapshot
+                ? visibleNodes.find(
+                      (node) =>
+                          node.id === sourceIdSnapshot && node.type === (sourceIsFolderSnapshot ? 'folder' : 'item')
+                  )
+                : null) || resolveNodeFromDnDEntity(source, visibleNodes);
+        if (!sourceNode) return;
+
+        const isFolderDrag = sourceNode.type === 'folder';
+        const resolvedLastOverNode = lastOverNodeSnapshot
+            ? findVisibleNodeById(lastOverNodeSnapshot.id, visibleNodes) || lastOverNodeSnapshot
+            : null;
+        const hoveredTarget = resolveNodeFromDnDEntity(target, visibleNodes, { allowIndexFallback: false });
+        let targetNode = resolvedLastOverNode || hoveredTarget || null;
+
+        if (isFolderDrag && targetNode?.parentId) {
+            targetNode = findVisibleNodeById(targetNode.parentId, visibleNodes) || targetNode;
+        }
+
+        if (isFolderDrag && overTargetId && !resolvedLastOverNode) {
+            return;
+        }
+
+        if (!isFolderDrag && overTargetId && wasOverFolder) {
+            targetNode = findVisibleNodeById(overTargetId, visibleNodes) || targetNode;
+        }
+
+        if (
+            targetNode &&
+            targetNode.type === sourceNode.type &&
+            targetNode.id === sourceNode.id &&
+            (targetNode.parentId || null) === (sourceNode.parentId || null)
+        ) {
+            return;
+        }
+
+        const sourceNodeIndex = getNodeIndex(visibleNodes, sourceNode);
+        const targetNodeIndex = getNodeIndex(visibleNodes, targetNode);
+        const movingDown = sourceNodeIndex >= 0 && targetNodeIndex >= 0 ? sourceNodeIndex < targetNodeIndex : false;
+        if (isFolderDrag) {
+            const allowAppendWhenNoTarget = !overTargetId && !resolvedLastOverNode;
+            moveFolderByTarget(sourceNode.id, targetNode, movingDown, allowAppendWhenNoTarget);
+        } else {
+            moveItemByTarget(sourceNode.id, targetNode, movingDown);
+        }
+    };
+
+    const openFolderEditor = (folderId) => {
+        const entry = localLayout.value.find((e) => e.type === 'folder' && e.id === folderId);
+        if (!entry) return;
+        folderEditor.isEditing = true;
+        folderEditor.editingId = folderId;
+        folderEditor.data = { id: entry.id, name: entry.name, icon: entry.icon };
         folderEditor.visible = true;
     };
 
-    const closeFolderEditor = () => {
-        folderEditor.visible = false;
-    };
-
-    const toggleFolderItem = (key, enabled) => {
-        if (enabled) {
-            if (!folderEditor.data.items.includes(key)) {
-                folderEditor.data.items.push(key);
-            }
-        } else {
-            folderEditor.data.items = folderEditor.data.items.filter((item) => item !== key);
-        }
-    };
-
-    const handleFolderItemMove = (index, direction) => {
-        const targetIndex = index + direction;
-        if (targetIndex < 0 || targetIndex >= folderEditor.data.items.length) {
-            return;
-        }
-        const items = [...folderEditor.data.items];
-        const [item] = items.splice(index, 1);
-        items.splice(targetIndex, 0, item);
-        folderEditor.data.items = items;
-    };
-
-    const applyFolderChanges = () => {
-        const sanitizedItems = folderEditor.data.items.filter((key) => definitionsMap.value.has(key));
-        const sanitizedIcon = folderEditor.data.icon?.trim() || '';
-        const entries = [...localLayout.value];
-
-        if (folderEditor.isEditing) {
-            const targetIndex = folderEditor.index;
-            if (targetIndex < 0) {
-                return;
-            }
-            const existing = entries[targetIndex];
-            if (!existing || existing.type !== 'folder') {
-                return;
-            }
-            const removedItems = existing.items.filter((key) => !sanitizedItems.includes(key));
-            entries.splice(targetIndex, 1);
-
-            const filteredEntries = entries.filter(
-                (entry) => !(entry.type === 'item' && sanitizedItems.includes(entry.key))
-            );
-
-            filteredEntries.splice(targetIndex, 0, {
-                type: 'folder',
-                id: folderEditor.data.id,
-                name: folderEditor.data.name.trim(),
-                icon: sanitizedIcon,
-                items: sanitizedItems
-            });
-
-            if (removedItems.length) {
-                const insertItems = removedItems.map((key) => ({ type: 'item', key }));
-                filteredEntries.splice(targetIndex + 1, 0, ...insertItems);
-            }
-
-            localLayout.value = filteredEntries;
-            return;
-        }
-
-        const filteredEntries = entries.filter(
-            (entry) => !(entry.type === 'item' && sanitizedItems.includes(entry.key))
-        );
-
-        filteredEntries.push({
-            type: 'folder',
-            id: folderEditor.data.id,
-            name: folderEditor.data.name.trim(),
-            icon: sanitizedIcon,
-            items: sanitizedItems
-        });
-
-        localLayout.value = filteredEntries;
+    const handleAddFolder = () => {
+        folderEditor.isEditing = false;
+        folderEditor.editingId = null;
+        folderEditor.data = {
+            id: createFolderId(),
+            name: '',
+            icon: ''
+        };
+        folderEditor.visible = true;
     };
 
     const handleFolderEditorSave = () => {
-        if (folderEditorSaveDisabled.value) {
-            return;
-        }
-        applyFolderChanges();
-        closeFolderEditor();
-    };
+        if (!folderEditor.data.name?.trim()) return;
 
-    const handleFolderEditorDelete = () => {
-        if (!folderEditor.isEditing) {
-            return;
+        if (folderEditor.isEditing) {
+            const entry = localLayout.value.find((e) => e.type === 'folder' && e.id === folderEditor.editingId);
+            if (entry) {
+                entry.name = folderEditor.data.name.trim();
+                entry.icon = folderEditor.data.icon?.trim() || DEFAULT_FOLDER_ICON;
+                localLayout.value = [...localLayout.value];
+            }
+        } else {
+            localLayout.value.push({
+                type: 'folder',
+                id: folderEditor.data.id,
+                name: folderEditor.data.name.trim(),
+                icon: folderEditor.data.icon?.trim() || DEFAULT_FOLDER_ICON,
+                items: []
+            });
+            localLayout.value = [...localLayout.value];
+            if (!expandedKeys.value.includes(folderEditor.data.id)) {
+                expandedKeys.value = [...expandedKeys.value, folderEditor.data.id];
+            }
         }
-        const entries = [...localLayout.value];
-        const targetIndex = folderEditor.index;
-        if (targetIndex < 0) {
-            return;
-        }
-        const folder = entries[targetIndex];
-        if (!folder || folder.type !== 'folder') {
-            return;
-        }
-        entries.splice(targetIndex, 1);
-        const restoredItems = (folder.items || []).map((key) => ({ type: 'item', key }));
-        entries.splice(targetIndex, 0, ...restoredItems);
-        localLayout.value = entries;
-        closeFolderEditor();
+        folderEditor.visible = false;
     };
 
     const handleSave = () => {
-        if (isSaveDisabled.value) {
-            return;
-        }
-        emit('save', cloneLayout(localLayout.value));
+        const cleanedLayout = localLayout.value.filter(
+            (entry) => !(entry.type === 'folder' && (!entry.items || entry.items.length === 0))
+        );
+        emit('save', cloneLayout(cleanedLayout), [...hiddenKeySet.value]);
     };
 
     const handleReset = () => {
-        emit('reset');
+        localLayout.value = cloneLayout(props.defaultLayout || []);
+        hiddenKeySet.value = new Set();
+        hiddenPlacement.value = new Map();
+        expandedKeys.value = localLayout.value.filter((e) => e.type === 'folder').map((e) => e.id);
     };
 
     const handleClose = () => {
         emit('update:visible', false);
     };
 </script>
-
-<style scoped>
-    .custom-nav-dialog__list {
-        display: flex;
-        flex-direction: column;
-        align-items: center;
-        gap: 12px;
-        overflow-y: auto;
-        padding-right: 4px;
-    }
-
-    .custom-nav-entry {
-        background: var(--card);
-        border: 1px solid var(--border);
-        border-radius: 8px;
-        padding: 10px 12px;
-        display: flex;
-        flex-direction: column;
-        gap: 8px;
-        width: 100%;
-        margin: 0 auto;
-    }
-
-    .custom-nav-entry__info {
-        display: flex;
-        align-items: center;
-        gap: 8px;
-        font-weight: 500;
-    }
-
-    .custom-nav-entry__info i {
-        font-size: 16px;
-    }
-
-    .custom-nav-entry__controls {
-        display: flex;
-        justify-content: flex-end;
-    }
-
-    .custom-nav-entry__move {
-        display: flex;
-        gap: 4px;
-    }
-
-    .custom-nav-entry__folder-header {
-        display: flex;
-        justify-content: space-between;
-        align-items: center;
-        gap: 12px;
-        flex-wrap: wrap;
-    }
-
-    .custom-nav-entry__actions {
-        display: flex;
-        align-items: center;
-        gap: 8px;
-    }
-
-    .custom-nav-entry__folder-items {
-        display: flex;
-        flex-wrap: wrap;
-        gap: 6px;
-    }
-
-    .custom-nav-entry__folder-tag {
-        margin: 0;
-    }
-
-    .custom-nav-entry__folder-empty {
-        font-size: 12px;
-    }
-
-    .custom-nav-dialog__footer {
-        display: flex;
-        justify-content: space-between;
-        align-items: center;
-        width: 100%;
-    }
-
-    .custom-nav-dialog__footer-left {
-        display: flex;
-        gap: 8px;
-    }
-
-    .custom-nav-dialog__footer-right {
-        display: flex;
-        gap: 8px;
-    }
-
-    .folder-editor__form {
-        display: grid;
-        grid-template-columns: minmax(0, 1fr) auto;
-        gap: 8px;
-        align-items: center;
-        margin-bottom: 12px;
-    }
-
-    .folder-editor__icon-picker {
-        justify-self: end;
-    }
-
-    .folder-editor__lists {
-        display: grid;
-        grid-template-columns: minmax(220px, 0.9fr) minmax(260px, 1.1fr);
-        gap: 12px;
-    }
-
-    .folder-editor__column {
-        border-radius: 8px;
-        padding: 10px;
-        min-height: 220px;
-        display: flex;
-        flex-direction: column;
-    }
-
-    .folder-editor__column-title {
-        font-weight: 600;
-        margin-bottom: 8px;
-    }
-
-    .folder-editor__empty {
-        flex: 1;
-        display: flex;
-        align-items: center;
-        justify-content: center;
-        font-size: 12px;
-        text-align: center;
-    }
-
-    .folder-editor__scroll {
-        max-height: 240px;
-    }
-
-    .folder-editor__option {
-        padding: 4px 0;
-    }
-
-    .folder-editor__option-label {
-        display: inline-flex;
-        align-items: center;
-        gap: 6px;
-    }
-
-    .folder-editor__option-label i {
-        font-size: 14px;
-    }
-
-    .folder-editor__selected-item {
-        display: flex;
-        align-items: center;
-        gap: 12px;
-        padding: 6px 0;
-    }
-
-    .folder-editor__selected-item:last-child {
-        border-bottom: none;
-    }
-
-    .folder-editor__selected-label {
-        display: flex;
-        align-items: center;
-        gap: 8px;
-        flex: 1;
-        min-width: 0;
-    }
-
-    .folder-editor__selected-label i {
-        font-size: 14px;
-    }
-
-    .folder-editor__selected-actions {
-        display: flex;
-        align-items: center;
-        gap: 8px;
-        flex-wrap: wrap;
-    }
-
-    .folder-editor__column--selected {
-        min-height: 260px;
-    }
-
-    .folder-editor__footer {
-        display: flex;
-        align-items: center;
-        width: 100%;
-    }
-
-    .folder-editor__footer-spacer {
-        flex: 1;
-    }
-</style>
diff --git a/src/components/dialogs/SortableTreeNode.vue b/src/components/dialogs/SortableTreeNode.vue
new file mode 100644
index 00000000..7f22ba4d
--- /dev/null
+++ b/src/components/dialogs/SortableTreeNode.vue
@@ -0,0 +1,123 @@
+<script setup>
+    import {
+        DropdownMenu,
+        DropdownMenuContent,
+        DropdownMenuItem,
+        DropdownMenuTrigger
+    } from '@/components/ui/dropdown-menu';
+    import { ChevronRight, Ellipsis, GripVertical } from 'lucide-vue-next';
+    import { computed, ref } from 'vue';
+    import { Button } from '@/components/ui/button';
+    import { TreeItem } from '@/components/ui/tree';
+    import { useI18n } from 'vue-i18n';
+    import { useSortable } from '@dnd-kit/vue/sortable';
+
+    const props = defineProps({
+        item: { type: Object, required: true },
+        index: { type: Number, required: true },
+        definitionsMap: { type: Map, required: true },
+        dragState: { type: Object, default: () => ({}) }
+    });
+
+    const emit = defineEmits(['editFolder', 'deleteFolder', 'hide', 'toggle']);
+
+    const { t } = useI18n();
+
+    const element = ref(null);
+
+    const nodeValue = computed(() => props.item.value);
+    const isFolder = computed(() => nodeValue.value?.type === 'folder');
+    const hasChildren = computed(() => props.item.hasChildren);
+    const level = computed(() => nodeValue.value?.level ?? 0);
+    const nodeId = computed(() => (isFolder.value ? nodeValue.value?.id : nodeValue.value?.key));
+
+    const { isDragSource } = useSortable({
+        // Use business id (folder.id / item.key) so drag events align with layout lookup logic.
+        id: nodeId,
+        index: computed(() => props.index),
+        element
+    });
+
+    const displayLabel = computed(() => {
+        if (isFolder.value) {
+            return nodeValue.value.name?.trim() || t('nav_menu.custom_nav.folder_name_placeholder');
+        }
+        const def = props.definitionsMap.get(nodeValue.value?.key);
+        return def ? t(def.labelKey) : nodeValue.value?.key || '';
+    });
+
+    const displayIcon = computed(() => {
+        if (isFolder.value) {
+            return nodeValue.value.icon || 'ri-folder-line';
+        }
+        const def = props.definitionsMap.get(nodeValue.value?.key);
+        return def?.icon || '';
+    });
+
+    // Visual indicator: highlight when this folder is the drop target
+    const isDropHighlighted = computed(() => {
+        if (!props.dragState?.active) return false;
+        if (!isFolder.value) return false;
+        return props.dragState.overTargetId === nodeId.value && props.dragState.overIsFolder;
+    });
+</script>
+
+<template>
+    <TreeItem
+        ref="element"
+        :value="item.value"
+        :level="level"
+        v-bind="item.bind"
+        class="group select-none cursor-grab active:cursor-grabbing"
+        :class="[
+            isDragSource ? 'opacity-40' : '',
+            isFolder ? 'bg-muted/50 border-l-primary/60 border-l-2 font-semibold' : '',
+            level > 0 ? 'text-muted-foreground' : '',
+            isDropHighlighted ? 'ring-primary/50 bg-primary/10 ring-2' : ''
+        ]">
+        <template #default="{ isExpanded }">
+            <GripVertical class="size-4 shrink-0 text-muted-foreground opacity-50 group-hover:opacity-100" />
+
+            <button
+                v-if="hasChildren"
+                type="button"
+                class="flex size-4 shrink-0 items-center justify-center rounded transition-transform"
+                :class="isExpanded ? 'rotate-90' : ''"
+                @click.stop="emit('toggle')">
+                <ChevronRight class="size-3.5" />
+            </button>
+            <span v-else class="size-4 shrink-0" />
+
+            <i v-if="displayIcon" :class="displayIcon" class="text-base" />
+
+            <span class="flex-1 truncate text-sm">{{ displayLabel }}</span>
+
+            <DropdownMenu>
+                <DropdownMenuTrigger as-child>
+                    <Button
+                        size="icon-sm"
+                        variant="ghost"
+                        class="ml-auto size-6 shrink-0 opacity-0 group-hover:opacity-100"
+                        @click.stop>
+                        <Ellipsis class="size-3.5" />
+                    </Button>
+                </DropdownMenuTrigger>
+                <DropdownMenuContent align="end">
+                    <template v-if="isFolder">
+                        <DropdownMenuItem @click="emit('editFolder', nodeValue.id)">
+                            {{ t('nav_menu.custom_nav.edit_folder') }}
+                        </DropdownMenuItem>
+                        <DropdownMenuItem class="text-destructive" @click="emit('deleteFolder', nodeValue.id)">
+                            {{ t('nav_menu.custom_nav.delete_folder') }}
+                        </DropdownMenuItem>
+                    </template>
+                    <template v-else>
+                        <DropdownMenuItem @click="emit('hide', nodeValue.key)">
+                            {{ t('nav_menu.custom_nav.hide') }}
+                        </DropdownMenuItem>
+                    </template>
+                </DropdownMenuContent>
+            </DropdownMenu>
+        </template>
+    </TreeItem>
+</template>
diff --git a/src/components/ui/tree/Tree.vue b/src/components/ui/tree/Tree.vue
new file mode 100644
index 00000000..6bfe4ee3
--- /dev/null
+++ b/src/components/ui/tree/Tree.vue
@@ -0,0 +1,35 @@
+<script setup>
+    import { TreeRoot } from 'reka-ui';
+    import { cn } from '@/lib/utils';
+
+    const props = defineProps({
+        items: { type: Array, required: true },
+        getKey: { type: Function, required: false },
+        getChildren: { type: Function, required: false },
+        defaultExpanded: { type: Array, required: false },
+        expanded: { type: Array, required: false },
+        multiple: { type: Boolean, required: false, default: false },
+        propagateSelect: { type: Boolean, required: false, default: false },
+        class: { type: null, required: false }
+    });
+
+    const emit = defineEmits(['update:expanded', 'update:modelValue']);
+</script>
+
+<template>
+    <TreeRoot
+        :items="props.items"
+        :get-key="props.getKey"
+        :get-children="props.getChildren"
+        :default-expanded="props.defaultExpanded"
+        :expanded="props.expanded"
+        :multiple="props.multiple"
+        :propagate-select="props.propagateSelect"
+        :class="cn('flex flex-col', props.class)"
+        @update:expanded="(val) => emit('update:expanded', val)"
+        @update:model-value="(val) => emit('update:modelValue', val)">
+        <template #default="slotProps">
+            <slot v-bind="slotProps" />
+        </template>
+    </TreeRoot>
+</template>
diff --git a/src/components/ui/tree/TreeItem.vue b/src/components/ui/tree/TreeItem.vue
new file mode 100644
index 00000000..178b5504
--- /dev/null
+++ b/src/components/ui/tree/TreeItem.vue
@@ -0,0 +1,31 @@
+<script setup>
+    import { TreeItem as RekaTreeItem } from 'reka-ui';
+    import { cn } from '@/lib/utils';
+
+    const props = defineProps({
+        value: { type: Object, required: true },
+        level: { type: Number, required: false, default: 0 },
+        asChild: { type: Boolean, required: false, default: false },
+        class: { type: null, required: false }
+    });
+</script>
+
+<template>
+    <RekaTreeItem
+        v-slot="slotProps"
+        :value="props.value"
+        :level="props.level"
+        :as-child="props.asChild"
+        :class="
+            cn(
+                'flex items-center gap-2 rounded-md px-2 py-1.5 text-sm outline-none select-none',
+                'hover:bg-accent hover:text-accent-foreground',
+                'focus-visible:ring-ring focus-visible:ring-1',
+                'data-selected:bg-accent data-selected:text-accent-foreground',
+                props.class
+            )
+        "
+        :style="{ paddingLeft: `${props.level * 16 + 8}px` }">
+        <slot v-bind="slotProps" />
+    </RekaTreeItem>
+</template>
diff --git a/src/components/ui/tree/index.js b/src/components/ui/tree/index.js
new file mode 100644
index 00000000..823f2b56
--- /dev/null
+++ b/src/components/ui/tree/index.js
@@ -0,0 +1,2 @@
+export { default as Tree } from './Tree.vue';
+export { default as TreeItem } from './TreeItem.vue';
diff --git a/src/localization/en.json b/src/localization/en.json
index 338131ee..ba2d63e7 100644
--- a/src/localization/en.json
+++ b/src/localization/en.json
@@ -59,21 +59,20 @@
         "custom_nav": {
             "header": "Customize Navigation",
             "dialog_title": "Customize Navigation Menu",
-            "add_folder": "Add Folder",
+            "new_folder": "New Folder",
             "folder_name_placeholder": "Folder name",
             "folder_icon_placeholder": "Icon class (e.g. ri-menu-fold-line)",
             "edit_folder": "Edit Folder",
-            "folder_available": "Available items",
-            "folder_selected": "Folder items",
-            "folder_selected_empty": "No items selected",
             "delete_folder": "Delete Folder",
-            "remove_from_folder": "Remove from folder",
-            "folder_empty": "No items in this folder",
-            "invalid_folder": "Folder must have a name and contain at least two items.",
+            "folder_empty": "This folder is empty",
+            "folder_drop_here": "Drag items here",
+            "hide": "Hide",
+            "show": "Show",
+            "hidden_items": "Hidden",
+            "confirm": "Confirm",
+            "cancel": "Cancel",
             "restore_default": "Restore Default",
-            "restore_default_confirm": "Restore navigation to its default order?",
-            "save": "Save",
-            "cancel": "Cancel"
+            "restore_default_confirm": "Restore navigation to its default order?"
         }
     },
     "side_panel": {