diff --git a/apps/matrix/CLAUDE.md b/apps/matrix/CLAUDE.md
new file mode 100644
index 000000000..083809240
--- /dev/null
+++ b/apps/matrix/CLAUDE.md
@@ -0,0 +1,179 @@
+# Matrix Client
+
+Self-hosted Matrix chat client built with SvelteKit and matrix-js-sdk.
+
+## Project Overview
+
+A minimal, privacy-focused Matrix client that connects to your self-hosted Synapse server (matrix.mana.how).
+
+### Tech Stack
+
+| Layer | Technology |
+|-------|------------|
+| Frontend | SvelteKit 2, Svelte 5 (runes), Tailwind CSS 4 |
+| Matrix SDK | matrix-js-sdk |
+| State Management | Svelte 5 runes ($state, $derived) |
+| Icons | lucide-svelte |
+| Date Handling | date-fns |
+
+## Project Structure
+
+```
+apps/matrix/
+├── apps/
+│   └── web/                      # SvelteKit web client
+│       ├── src/
+│       │   ├── routes/
+│       │   │   ├── (auth)/       # Login flow
+│       │   │   ├── (app)/        # Protected chat routes
+│       │   │   └── health/       # Health check endpoint
+│       │   └── lib/
+│       │       ├── matrix/       # Matrix SDK integration
+│       │       │   ├── store.svelte.ts  # Reactive Matrix store
+│       │       │   ├── client.ts        # Login/auth functions
+│       │       │   ├── types.ts         # TypeScript types
+│       │       │   └── polyfills.ts     # Browser polyfills
+│       │       └── components/
+│       │           └── chat/     # Chat UI components
+│       └── package.json
+└── packages/
+    └── shared/                   # Shared types
+```
+
+## Development
+
+```bash
+# Start the Matrix web client
+pnpm dev:matrix:web
+
+# Or from monorepo root
+pnpm matrix:dev
+```
+
+The client runs on **http://localhost:5180**
+
+## Key Files
+
+### Matrix Store (`src/lib/matrix/store.svelte.ts`)
+
+Central reactive store using Svelte 5 runes:
+
+```typescript
+import { matrixStore } from '$lib/matrix';
+
+// State
+matrixStore.syncState      // 'STOPPED' | 'PREPARED' | 'SYNCING' | etc.
+matrixStore.isReady        // boolean - client ready for use
+matrixStore.rooms          // SimpleRoom[] - all rooms
+matrixStore.messages       // SimpleMessage[] - current room messages
+matrixStore.currentRoom    // Room | null - selected room
+
+// Actions
+await matrixStore.initialize(credentials);
+matrixStore.selectRoom(roomId);
+await matrixStore.sendMessage('Hello!');
+await matrixStore.sendTyping(true);
+matrixStore.logout();
+```
+
+### Login Client (`src/lib/matrix/client.ts`)
+
+```typescript
+import { loginWithPassword, checkHomeserver } from '$lib/matrix';
+
+const result = await loginWithPassword('matrix.mana.how', 'user', 'password');
+if (result.success) {
+  await matrixStore.initialize(result.credentials);
+}
+```
+
+## Features
+
+### Phase 1 (Current)
+- [x] Password login
+- [x] Room list (DMs and groups)
+- [x] Message timeline
+- [x] Send text messages
+- [x] Typing indicators
+- [x] Read receipts
+- [x] Unread counts
+- [x] Message pagination (load more)
+
+### Phase 2 (Planned)
+- [ ] End-to-end encryption (E2EE)
+- [ ] File/image uploads
+- [ ] Message editing/deletion
+- [ ] Room creation
+- [ ] User search/invite
+
+### Phase 3 (Future)
+- [ ] VoIP calls (WebRTC)
+- [ ] Video calls
+- [ ] Screen sharing
+
+## Configuration
+
+### Environment Variables
+
+No environment variables required for basic usage. The client stores credentials in localStorage.
+
+### Default Homeserver
+
+The login page defaults to `matrix.mana.how` but any Matrix homeserver can be used.
+
+## Matrix SDK Notes
+
+### Browser Polyfills
+
+matrix-js-sdk requires polyfills for browser usage. These are automatically loaded in `src/lib/matrix/polyfills.ts`:
+
+- `Buffer` from buffer package
+- `global` mapped to `globalThis`
+- `process.env` stub
+
+### Vite Configuration
+
+Special Vite config in `vite.config.ts`:
+
+```typescript
+define: {
+  global: 'globalThis',
+},
+optimizeDeps: {
+  include: ['buffer', 'events'],
+}
+```
+
+### Client-Side Only
+
+matrix-js-sdk only works client-side. Always guard with:
+
+```typescript
+import { browser } from '$app/environment';
+
+if (browser) {
+  await matrixStore.initialize();
+}
+```
+
+## Troubleshooting
+
+### "super.off is not a function"
+
+This is a known issue with typed-event-emitter. Make sure polyfills are loaded before any matrix-js-sdk imports.
+
+### Login fails with network error
+
+1. Check if homeserver is reachable: `curl https://matrix.mana.how/_matrix/client/versions`
+2. Verify CORS is configured on Synapse
+3. Try without https:// prefix in homeserver field
+
+### Messages not loading
+
+The initial sync can take time depending on room history. Check `matrixStore.syncState` for status.
+
+## Related Documentation
+
+- [Matrix Client-Server API](https://spec.matrix.org/latest/client-server-api/)
+- [matrix-js-sdk docs](https://matrix-org.github.io/matrix-js-sdk/)
+- [Synapse Admin API](https://element-hq.github.io/synapse/latest/admin_api/)
diff --git a/apps/matrix/apps/web/package.json b/apps/matrix/apps/web/package.json
new file mode 100644
index 000000000..1d852c2a3
--- /dev/null
+++ b/apps/matrix/apps/web/package.json
@@ -0,0 +1,48 @@
+{
+	"name": "@matrix/web",
+	"version": "0.1.0",
+	"private": true,
+	"type": "module",
+	"scripts": {
+		"dev": "vite dev",
+		"build": "vite build",
+		"preview": "vite preview",
+		"prepare": "svelte-kit sync || echo ''",
+		"check": "svelte-kit sync && svelte-check --tsconfig ./tsconfig.json",
+		"check:watch": "svelte-kit sync && svelte-check --tsconfig ./tsconfig.json --watch",
+		"type-check": "svelte-kit sync && svelte-check --tsconfig ./tsconfig.json",
+		"format": "prettier --write .",
+		"lint": "eslint ."
+	},
+	"devDependencies": {
+		"@sveltejs/adapter-node": "^5.2.12",
+		"@sveltejs/kit": "^2.21.0",
+		"@sveltejs/vite-plugin-svelte": "^5.0.3",
+		"@tailwindcss/vite": "^4.1.7",
+		"@types/node": "^22.15.21",
+		"prettier": "^3.5.3",
+		"prettier-plugin-svelte": "^3.4.0",
+		"svelte": "^5.33.0",
+		"svelte-check": "^4.2.1",
+		"tailwindcss": "^4.1.7",
+		"tslib": "^2.8.1",
+		"typescript": "^5.8.3",
+		"vite": "^6.3.5"
+	},
+	"dependencies": {
+		"matrix-js-sdk": "^37.1.0",
+		"buffer": "^6.0.3",
+		"events": "^3.3.0",
+		"@manacore/shared-auth": "workspace:*",
+		"@manacore/shared-theme": "workspace:*",
+		"@manacore/shared-tailwind": "workspace:*",
+		"@manacore/shared-i18n": "workspace:*",
+		"@manacore/shared-icons": "workspace:*",
+		"lucide-svelte": "^0.509.0",
+		"date-fns": "^4.1.0",
+		"svelte-i18n": "^4.0.1"
+	},
+	"overrides": {
+		"@matrix-org/matrix-sdk-crypto-nodejs": "npm:empty-npm-package@1.0.0"
+	}
+}
diff --git a/apps/matrix/apps/web/src/app.css b/apps/matrix/apps/web/src/app.css
new file mode 100644
index 000000000..c4976f67c
--- /dev/null
+++ b/apps/matrix/apps/web/src/app.css
@@ -0,0 +1,39 @@
+@import 'tailwindcss';
+@import '@manacore/shared-tailwind/themes.css';
+
+/* Scan shared packages for Tailwind classes */
+@source '../../../packages/shared/src';
+@source '../../../../../packages/shared-ui/src';
+@source '../../../../../packages/shared-icons/src';
+
+@layer base {
+	:root {
+		--spacing-xs: 0.25rem;
+		--spacing-sm: 0.5rem;
+		--spacing-md: 1rem;
+		--spacing-lg: 1.5rem;
+		--spacing-xl: 2rem;
+	}
+
+	body {
+		@apply bg-base-100 text-base-content;
+	}
+}
+
+/* Custom scrollbar for chat */
+.chat-scrollbar::-webkit-scrollbar {
+	width: 6px;
+}
+
+.chat-scrollbar::-webkit-scrollbar-track {
+	background: transparent;
+}
+
+.chat-scrollbar::-webkit-scrollbar-thumb {
+	background: oklch(var(--bc) / 0.2);
+	border-radius: 3px;
+}
+
+.chat-scrollbar::-webkit-scrollbar-thumb:hover {
+	background: oklch(var(--bc) / 0.3);
+}
diff --git a/apps/matrix/apps/web/src/app.d.ts b/apps/matrix/apps/web/src/app.d.ts
new file mode 100644
index 000000000..b15512ca1
--- /dev/null
+++ b/apps/matrix/apps/web/src/app.d.ts
@@ -0,0 +1,20 @@
+// See https://svelte.dev/docs/kit/types#app.d.ts
+// for information about these interfaces
+declare global {
+	namespace App {
+		// interface Error {}
+		// interface Locals {}
+		// interface PageData {}
+		// interface PageState {}
+		// interface Platform {}
+	}
+
+	// Polyfills for matrix-js-sdk
+	interface Window {
+		global: typeof globalThis;
+		Buffer: typeof import('buffer').Buffer;
+		process: { env: Record<string, string> };
+	}
+}
+
+export {};
diff --git a/apps/matrix/apps/web/src/app.html b/apps/matrix/apps/web/src/app.html
new file mode 100644
index 000000000..8997ef202
--- /dev/null
+++ b/apps/matrix/apps/web/src/app.html
@@ -0,0 +1,13 @@
+<!doctype html>
+<html lang="en" data-theme="dark">
+	<head>
+		<meta charset="utf-8" />
+		<link rel="icon" href="%sveltekit.assets%/favicon.png" />
+		<meta name="viewport" content="width=device-width, initial-scale=1" />
+		<title>Mana Matrix</title>
+		%sveltekit.head%
+	</head>
+	<body data-sveltekit-preload-data="hover">
+		<div style="display: contents">%sveltekit.body%</div>
+	</body>
+</html>
diff --git a/apps/matrix/apps/web/src/lib/components/chat/Message.svelte b/apps/matrix/apps/web/src/lib/components/chat/Message.svelte
new file mode 100644
index 000000000..34570f18f
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/components/chat/Message.svelte
@@ -0,0 +1,89 @@
+<script lang="ts">
+	import type { SimpleMessage } from '$lib/matrix';
+	import { format, isToday, isYesterday } from 'date-fns';
+	import { de } from 'date-fns/locale';
+
+	interface Props {
+		message: SimpleMessage;
+		showAvatar?: boolean;
+		showTimestamp?: boolean;
+	}
+
+	let { message, showAvatar = true, showTimestamp = false }: Props = $props();
+
+	let formattedTime = $derived(format(message.timestamp, 'HH:mm'));
+
+	let formattedDate = $derived(() => {
+		const date = new Date(message.timestamp);
+		if (isToday(date)) return 'Heute';
+		if (isYesterday(date)) return 'Gestern';
+		return format(date, 'EEEE, d. MMMM', { locale: de });
+	});
+
+	let initials = $derived(
+		message.senderName
+			.split(' ')
+			.map((w) => w[0])
+			.join('')
+			.substring(0, 2)
+			.toUpperCase()
+	);
+</script>
+
+<!-- Date separator -->
+{#if showTimestamp}
+	<div class="my-4 flex items-center gap-4">
+		<div class="h-px flex-1 bg-base-300"></div>
+		<span class="text-xs text-base-content/50">{formattedDate()}</span>
+		<div class="h-px flex-1 bg-base-300"></div>
+	</div>
+{/if}
+
+<!-- Message -->
+<div class="group flex gap-3 rounded-lg px-2 py-1 hover:bg-base-200/50" class:mt-2={showAvatar}>
+	<!-- Avatar Column -->
+	<div class="w-10 flex-shrink-0">
+		{#if showAvatar && !message.isOwn}
+			<div class="avatar placeholder">
+				<div class="w-10 rounded-full bg-neutral text-neutral-content">
+					<span class="text-xs">{initials}</span>
+				</div>
+			</div>
+		{/if}
+	</div>
+
+	<!-- Content -->
+	<div class="min-w-0 flex-1">
+		{#if showAvatar}
+			<div class="mb-0.5 flex items-baseline gap-2">
+				<span class="font-medium" class:text-primary={message.isOwn}>
+					{message.isOwn ? 'Du' : message.senderName}
+				</span>
+				<span class="text-xs text-base-content/40">{formattedTime}</span>
+				{#if message.edited}
+					<span class="text-xs text-base-content/40">(bearbeitet)</span>
+				{/if}
+			</div>
+		{/if}
+
+		<!-- Message body -->
+		<div class="relative">
+			{#if message.type === 'm.emote'}
+				<p class="italic text-base-content/80">* {message.senderName} {message.body}</p>
+			{:else if message.type === 'm.notice'}
+				<p class="text-sm text-base-content/60">{message.body}</p>
+			{:else}
+				<p class="whitespace-pre-wrap break-words">{message.body}</p>
+			{/if}
+
+			<!-- Hover timestamp for grouped messages -->
+			{#if !showAvatar}
+				<span
+					class="absolute -left-12 top-0 hidden text-xs text-base-content/40 group-hover:inline"
+				>
+					{formattedTime}
+				</span>
+			{/if}
+		</div>
+	</div>
+</div>
diff --git a/apps/matrix/apps/web/src/lib/components/chat/MessageInput.svelte b/apps/matrix/apps/web/src/lib/components/chat/MessageInput.svelte
new file mode 100644
index 000000000..dc643bae0
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/components/chat/MessageInput.svelte
@@ -0,0 +1,105 @@
+<script lang="ts">
+	import { matrixStore } from '$lib/matrix';
+	import { Send, Paperclip, Smile } from 'lucide-svelte';
+
+	let message = $state('');
+	let textarea: HTMLTextAreaElement;
+	let typingTimeout: ReturnType<typeof setTimeout>;
+	let isTyping = $state(false);
+
+	async function handleSend() {
+		const trimmed = message.trim();
+		if (!trimmed) return;
+
+		const sent = await matrixStore.sendMessage(trimmed);
+		if (sent) {
+			message = '';
+			stopTyping();
+			adjustTextareaHeight();
+		}
+	}
+
+	function handleInput() {
+		adjustTextareaHeight();
+
+		// Send typing indicator
+		if (!isTyping) {
+			isTyping = true;
+			matrixStore.sendTyping(true);
+		}
+
+		// Reset typing timeout
+		clearTimeout(typingTimeout);
+		typingTimeout = setTimeout(stopTyping, 3000);
+	}
+
+	function stopTyping() {
+		if (isTyping) {
+			isTyping = false;
+			matrixStore.sendTyping(false);
+		}
+		clearTimeout(typingTimeout);
+	}
+
+	function handleKeydown(e: KeyboardEvent) {
+		// Send on Enter (without Shift)
+		if (e.key === 'Enter' && !e.shiftKey) {
+			e.preventDefault();
+			handleSend();
+		}
+	}
+
+	function adjustTextareaHeight() {
+		if (!textarea) return;
+		textarea.style.height = 'auto';
+		textarea.style.height = Math.min(textarea.scrollHeight, 200) + 'px';
+	}
+</script>
+
+<div class="border-t border-base-300 bg-base-100 p-4">
+	<div class="flex items-end gap-2">
+		<!-- Attachment button -->
+		<button class="btn btn-ghost btn-sm" title="Attach file" disabled>
+			<Paperclip class="h-5 w-5" />
+		</button>
+
+		<!-- Text input -->
+		<div class="relative flex-1">
+			<textarea
+				bind:this={textarea}
+				bind:value={message}
+				oninput={handleInput}
+				onkeydown={handleKeydown}
+				onblur={stopTyping}
+				placeholder="Write a message..."
+				rows="1"
+				class="textarea textarea-bordered w-full resize-none pr-10"
+				style="max-height: 200px; min-height: 48px;"
+			></textarea>
+
+			<!-- Emoji button (inside textarea) -->
+			<button
+				class="absolute bottom-2 right-2 text-base-content/50 hover:text-base-content"
+				title="Add emoji"
+				disabled
+			>
+				<Smile class="h-5 w-5" />
+			</button>
+		</div>
+
+		<!-- Send button -->
+		<button
+			class="btn btn-primary"
+			onclick={handleSend}
+			disabled={!message.trim()}
+			title="Send message"
+		>
+			<Send class="h-5 w-5" />
+		</button>
+	</div>
+
+	<!-- Hint -->
+	<p class="mt-1 text-xs text-base-content/40">
+		Press Enter to send, Shift+Enter for new line
+	</p>
+</div>
diff --git a/apps/matrix/apps/web/src/lib/components/chat/RoomHeader.svelte b/apps/matrix/apps/web/src/lib/components/chat/RoomHeader.svelte
new file mode 100644
index 000000000..972e3f722
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/components/chat/RoomHeader.svelte
@@ -0,0 +1,65 @@
+<script lang="ts">
+	import { matrixStore } from '$lib/matrix';
+	import { Menu, Phone, Video, Info, Lock, Users } from 'lucide-svelte';
+
+	interface Props {
+		onMenuClick?: () => void;
+	}
+
+	let { onMenuClick }: Props = $props();
+
+	let room = $derived(matrixStore.currentSimpleRoom);
+</script>
+
+{#if room}
+	<header class="flex items-center gap-3 border-b border-base-300 bg-base-100 px-4 py-3">
+		<!-- Mobile menu button -->
+		<button class="btn btn-ghost btn-sm lg:hidden" onclick={onMenuClick}>
+			<Menu class="h-5 w-5" />
+		</button>
+
+		<!-- Room avatar -->
+		<div class="avatar placeholder">
+			<div class="w-10 rounded-full bg-neutral text-neutral-content">
+				{#if room.avatar}
+					<img src={room.avatar} alt={room.name} />
+				{:else}
+					<span class="text-sm">{room.name.charAt(0).toUpperCase()}</span>
+				{/if}
+			</div>
+		</div>
+
+		<!-- Room info -->
+		<div class="min-w-0 flex-1">
+			<div class="flex items-center gap-2">
+				<h2 class="truncate font-semibold">{room.name}</h2>
+				{#if room.isEncrypted}
+					<Lock class="h-4 w-4 flex-shrink-0 text-success" title="End-to-end encrypted" />
+				{/if}
+			</div>
+			<p class="flex items-center gap-1 text-sm text-base-content/60">
+				{#if room.topic}
+					<span class="truncate">{room.topic}</span>
+				{:else if room.isDirect}
+					<span>Direct message</span>
+				{:else}
+					<Users class="h-3 w-3" />
+					<span>{room.memberCount} members</span>
+				{/if}
+			</p>
+		</div>
+
+		<!-- Actions -->
+		<div class="flex items-center gap-1">
+			<button class="btn btn-ghost btn-sm" title="Voice call" disabled>
+				<Phone class="h-5 w-5" />
+			</button>
+			<button class="btn btn-ghost btn-sm" title="Video call" disabled>
+				<Video class="h-5 w-5" />
+			</button>
+			<button class="btn btn-ghost btn-sm" title="Room info">
+				<Info class="h-5 w-5" />
+			</button>
+		</div>
+	</header>
+{/if}
diff --git a/apps/matrix/apps/web/src/lib/components/chat/RoomItem.svelte b/apps/matrix/apps/web/src/lib/components/chat/RoomItem.svelte
new file mode 100644
index 000000000..ae204c5ad
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/components/chat/RoomItem.svelte
@@ -0,0 +1,91 @@
+<script lang="ts">
+	import type { SimpleRoom } from '$lib/matrix';
+	import { formatDistanceToNow } from 'date-fns';
+	import { de } from 'date-fns/locale';
+	import { Lock, Users } from 'lucide-svelte';
+
+	interface Props {
+		room: SimpleRoom;
+		selected: boolean;
+		onclick: () => void;
+	}
+
+	let { room, selected, onclick }: Props = $props();
+
+	let timeAgo = $derived(
+		room.lastMessageTime
+			? formatDistanceToNow(room.lastMessageTime, { addSuffix: false, locale: de })
+			: ''
+	);
+
+	let initials = $derived(
+		room.name
+			.split(' ')
+			.map((w) => w[0])
+			.join('')
+			.substring(0, 2)
+			.toUpperCase()
+	);
+</script>
+
+<button
+	class="flex w-full items-center gap-3 px-3 py-2 transition-colors hover:bg-base-300"
+	class:bg-primary/10={selected}
+	class:hover:bg-primary/20={selected}
+	{onclick}
+>
+	<!-- Avatar -->
+	<div class="avatar placeholder">
+		<div
+			class="w-12 rounded-full bg-neutral text-neutral-content"
+			class:bg-primary={selected}
+			class:text-primary-content={selected}
+		>
+			{#if room.avatar}
+				<img src={room.avatar} alt={room.name} class="object-cover" />
+			{:else}
+				<span class="text-sm font-medium">{initials}</span>
+			{/if}
+		</div>
+	</div>
+
+	<!-- Room Info -->
+	<div class="flex min-w-0 flex-1 flex-col items-start">
+		<div class="flex w-full items-center gap-1">
+			<span class="truncate font-medium">{room.name}</span>
+			{#if room.isEncrypted}
+				<Lock class="h-3 w-3 flex-shrink-0 text-success" />
+			{/if}
+			{#if !room.isDirect && room.memberCount > 2}
+				<span class="flex items-center text-xs text-base-content/50">
+					<Users class="mr-0.5 h-3 w-3" />
+					{room.memberCount}
+				</span>
+			{/if}
+		</div>
+		{#if room.lastMessage}
+			<p class="w-full truncate text-left text-sm text-base-content/60">
+				{#if room.lastMessageSender && !room.isDirect}
+					<span class="font-medium">{room.lastMessageSender}:</span>
+				{/if}
+				{room.lastMessage}
+			</p>
+		{/if}
+	</div>
+
+	<!-- Meta -->
+	<div class="flex flex-shrink-0 flex-col items-end gap-1">
+		{#if timeAgo}
+			<span class="text-xs text-base-content/40">{timeAgo}</span>
+		{/if}
+		{#if room.unreadCount > 0}
+			<span
+				class="badge badge-sm"
+				class:badge-primary={room.highlightCount === 0}
+				class:badge-error={room.highlightCount > 0}
+			>
+				{room.unreadCount > 99 ? '99+' : room.unreadCount}
+			</span>
+		{/if}
+	</div>
+</button>
diff --git a/apps/matrix/apps/web/src/lib/components/chat/RoomList.svelte b/apps/matrix/apps/web/src/lib/components/chat/RoomList.svelte
new file mode 100644
index 000000000..1e0d34239
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/components/chat/RoomList.svelte
@@ -0,0 +1,76 @@
+<script lang="ts">
+	import { matrixStore } from '$lib/matrix';
+	import RoomItem from './RoomItem.svelte';
+	import { Search, Plus, Users, MessageCircle } from 'lucide-svelte';
+
+	let search = $state('');
+	let showDMs = $state(true);
+
+	let filteredRooms = $derived(
+		(showDMs ? matrixStore.directRooms : matrixStore.groupRooms).filter((room) =>
+			room.name.toLowerCase().includes(search.toLowerCase())
+		)
+	);
+</script>
+
+<div class="flex h-full flex-col">
+	<!-- Search -->
+	<div class="p-3">
+		<div class="relative">
+			<Search class="absolute left-3 top-1/2 h-4 w-4 -translate-y-1/2 text-base-content/50" />
+			<input
+				type="text"
+				bind:value={search}
+				placeholder="Search rooms..."
+				class="input input-bordered input-sm w-full pl-10"
+			/>
+		</div>
+	</div>
+
+	<!-- Tabs -->
+	<div class="tabs tabs-boxed mx-3 mb-2">
+		<button class="tab flex-1" class:tab-active={showDMs} onclick={() => (showDMs = true)}>
+			<MessageCircle class="mr-1 h-4 w-4" />
+			Direct
+			{#if matrixStore.directRooms.length > 0}
+				<span class="badge badge-sm ml-1">{matrixStore.directRooms.length}</span>
+			{/if}
+		</button>
+		<button class="tab flex-1" class:tab-active={!showDMs} onclick={() => (showDMs = false)}>
+			<Users class="mr-1 h-4 w-4" />
+			Rooms
+			{#if matrixStore.groupRooms.length > 0}
+				<span class="badge badge-sm ml-1">{matrixStore.groupRooms.length}</span>
+			{/if}
+		</button>
+	</div>
+
+	<!-- Room List -->
+	<div class="chat-scrollbar flex-1 overflow-y-auto">
+		{#each filteredRooms as room (room.id)}
+			<RoomItem
+				{room}
+				selected={room.id === matrixStore.currentRoomId}
+				onclick={() => matrixStore.selectRoom(room.id)}
+			/>
+		{:else}
+			<div class="flex flex-col items-center justify-center p-8 text-base-content/50">
+				{#if search}
+					<Search class="mb-2 h-8 w-8" />
+					<p>No rooms match "{search}"</p>
+				{:else}
+					<MessageCircle class="mb-2 h-8 w-8" />
+					<p>No {showDMs ? 'direct messages' : 'rooms'} yet</p>
+				{/if}
+			</div>
+		{/each}
+	</div>
+
+	<!-- New Room Button -->
+	<div class="border-t border-base-300 p-3">
+		<button class="btn btn-ghost btn-sm w-full justify-start">
+			<Plus class="h-4 w-4" />
+			{showDMs ? 'Start new chat' : 'Join or create room'}
+		</button>
+	</div>
+</div>
diff --git a/apps/matrix/apps/web/src/lib/components/chat/Timeline.svelte b/apps/matrix/apps/web/src/lib/components/chat/Timeline.svelte
new file mode 100644
index 000000000..b24325e21
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/components/chat/Timeline.svelte
@@ -0,0 +1,113 @@
+<script lang="ts">
+	import { matrixStore } from '$lib/matrix';
+	import Message from './Message.svelte';
+	import TypingIndicator from './TypingIndicator.svelte';
+	import { onMount, tick } from 'svelte';
+	import { Loader2, ArrowDown } from 'lucide-svelte';
+
+	let container: HTMLDivElement;
+	let showScrollButton = $state(false);
+	let loadingMore = $state(false);
+	let prevMessageCount = $state(0);
+
+	// Auto-scroll to bottom on new messages (if already at bottom)
+	$effect(() => {
+		const messageCount = matrixStore.messages.length;
+		if (messageCount > prevMessageCount && container) {
+			const isAtBottom = container.scrollHeight - container.scrollTop - container.clientHeight < 100;
+			if (isAtBottom) {
+				tick().then(() => {
+					container.scrollTo({ top: container.scrollHeight, behavior: 'smooth' });
+				});
+			}
+		}
+		prevMessageCount = messageCount;
+	});
+
+	function handleScroll() {
+		if (!container) return;
+
+		// Show scroll button if not at bottom
+		const distanceFromBottom = container.scrollHeight - container.scrollTop - container.clientHeight;
+		showScrollButton = distanceFromBottom > 200;
+
+		// Load more when scrolled to top
+		if (container.scrollTop < 100 && !loadingMore) {
+			loadMore();
+		}
+	}
+
+	async function loadMore() {
+		if (loadingMore) return;
+
+		loadingMore = true;
+		const prevScrollHeight = container.scrollHeight;
+
+		await matrixStore.loadMoreMessages(50);
+
+		// Maintain scroll position after loading
+		tick().then(() => {
+			const newScrollHeight = container.scrollHeight;
+			container.scrollTop = newScrollHeight - prevScrollHeight;
+		});
+
+		loadingMore = false;
+	}
+
+	function scrollToBottom() {
+		container?.scrollTo({ top: container.scrollHeight, behavior: 'smooth' });
+	}
+
+	onMount(() => {
+		// Scroll to bottom on mount
+		if (container) {
+			container.scrollTop = container.scrollHeight;
+		}
+	});
+</script>
+
+<div class="relative flex-1 overflow-hidden">
+	<div
+		bind:this={container}
+		onscroll={handleScroll}
+		class="chat-scrollbar h-full overflow-y-auto p-4"
+	>
+		<!-- Loading indicator at top -->
+		{#if loadingMore}
+			<div class="flex justify-center py-4">
+				<Loader2 class="h-6 w-6 animate-spin text-base-content/50" />
+			</div>
+		{/if}
+
+		<!-- Messages -->
+		<div class="space-y-1">
+			{#each matrixStore.messages as message, index (message.id)}
+				{@const prevMessage = matrixStore.messages[index - 1]}
+				{@const showAvatar = !prevMessage || prevMessage.sender !== message.sender}
+				{@const showTimestamp =
+					!prevMessage || message.timestamp - prevMessage.timestamp > 5 * 60 * 1000}
+				<Message {message} {showAvatar} {showTimestamp} />
+			{:else}
+				<div class="flex h-full flex-col items-center justify-center text-base-content/50">
+					<p>No messages yet</p>
+					<p class="text-sm">Start the conversation!</p>
+				</div>
+			{/each}
+		</div>
+
+		<!-- Typing Indicator -->
+		{#if matrixStore.currentRoomTyping.length > 0}
+			<TypingIndicator users={matrixStore.currentRoomTyping} />
+		{/if}
+	</div>
+
+	<!-- Scroll to bottom button -->
+	{#if showScrollButton}
+		<button
+			onclick={scrollToBottom}
+			class="absolute bottom-4 right-4 btn btn-circle btn-sm shadow-lg"
+		>
+			<ArrowDown class="h-4 w-4" />
+		</button>
+	{/if}
+</div>
diff --git a/apps/matrix/apps/web/src/lib/components/chat/TypingIndicator.svelte b/apps/matrix/apps/web/src/lib/components/chat/TypingIndicator.svelte
new file mode 100644
index 000000000..40cebb2c5
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/components/chat/TypingIndicator.svelte
@@ -0,0 +1,29 @@
+<script lang="ts">
+	interface Props {
+		users: string[];
+	}
+
+	let { users }: Props = $props();
+
+	let text = $derived(() => {
+		if (users.length === 0) return '';
+		if (users.length === 1) return `${users[0]} tippt...`;
+		if (users.length === 2) return `${users[0]} und ${users[1]} tippen...`;
+		return `${users[0]} und ${users.length - 1} weitere tippen...`;
+	});
+</script>
+
+{#if users.length > 0}
+	<div class="flex items-center gap-2 px-4 py-2 text-sm text-base-content/60">
+		<!-- Animated dots -->
+		<span class="flex gap-1">
+			<span class="h-2 w-2 animate-bounce rounded-full bg-base-content/40 [animation-delay:0ms]"
+			></span>
+			<span class="h-2 w-2 animate-bounce rounded-full bg-base-content/40 [animation-delay:150ms]"
+			></span>
+			<span class="h-2 w-2 animate-bounce rounded-full bg-base-content/40 [animation-delay:300ms]"
+			></span>
+		</span>
+		<span>{text()}</span>
+	</div>
+{/if}
diff --git a/apps/matrix/apps/web/src/lib/components/chat/index.ts b/apps/matrix/apps/web/src/lib/components/chat/index.ts
new file mode 100644
index 000000000..705dc54f0
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/components/chat/index.ts
@@ -0,0 +1,7 @@
+export { default as RoomList } from './RoomList.svelte';
+export { default as RoomItem } from './RoomItem.svelte';
+export { default as RoomHeader } from './RoomHeader.svelte';
+export { default as Timeline } from './Timeline.svelte';
+export { default as Message } from './Message.svelte';
+export { default as MessageInput } from './MessageInput.svelte';
+export { default as TypingIndicator } from './TypingIndicator.svelte';
diff --git a/apps/matrix/apps/web/src/lib/matrix/client.ts b/apps/matrix/apps/web/src/lib/matrix/client.ts
new file mode 100644
index 000000000..6daa0b5b0
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/matrix/client.ts
@@ -0,0 +1,198 @@
+import type { MatrixCredentials, LoginResult } from './types';
+
+/**
+ * Login with username and password
+ */
+export async function loginWithPassword(
+	homeserver: string,
+	username: string,
+	password: string
+): Promise<LoginResult> {
+	// Load polyfills first
+	await import('./polyfills');
+	const { createClient } = await import('matrix-js-sdk');
+
+	// Normalize homeserver URL
+	let baseUrl = homeserver.trim();
+	if (!baseUrl.startsWith('http://') && !baseUrl.startsWith('https://')) {
+		baseUrl = `https://${baseUrl}`;
+	}
+	// Remove trailing slash
+	baseUrl = baseUrl.replace(/\/$/, '');
+
+	const tempClient = createClient({ baseUrl });
+
+	try {
+		const response = await tempClient.login('m.login.password', {
+			user: username,
+			password: password,
+			initial_device_display_name: 'Mana Matrix Client',
+		});
+
+		return {
+			success: true,
+			credentials: {
+				homeserver: baseUrl,
+				accessToken: response.access_token,
+				userId: response.user_id,
+				deviceId: response.device_id,
+			},
+		};
+	} catch (err) {
+		const message = err instanceof Error ? err.message : 'Login failed';
+
+		// Provide more helpful error messages
+		if (message.includes('M_FORBIDDEN')) {
+			return { success: false, error: 'Invalid username or password' };
+		}
+		if (message.includes('M_USER_DEACTIVATED')) {
+			return { success: false, error: 'This account has been deactivated' };
+		}
+		if (message.includes('Failed to fetch') || message.includes('NetworkError')) {
+			return { success: false, error: 'Could not connect to homeserver' };
+		}
+
+		return { success: false, error: message };
+	}
+}
+
+/**
+ * Login with an existing access token (for SSO/OAuth flows)
+ */
+export async function loginWithToken(
+	homeserver: string,
+	accessToken: string,
+	userId: string,
+	deviceId?: string
+): Promise<LoginResult> {
+	// Normalize homeserver URL
+	let baseUrl = homeserver.trim();
+	if (!baseUrl.startsWith('http://') && !baseUrl.startsWith('https://')) {
+		baseUrl = `https://${baseUrl}`;
+	}
+	baseUrl = baseUrl.replace(/\/$/, '');
+
+	return {
+		success: true,
+		credentials: {
+			homeserver: baseUrl,
+			accessToken,
+			userId,
+			deviceId: deviceId || `MANA_${Date.now()}`,
+		},
+	};
+}
+
+/**
+ * Discover homeserver from user ID or domain
+ * Uses .well-known discovery
+ */
+export async function discoverHomeserver(userIdOrDomain: string): Promise<string | null> {
+	// Extract domain from user ID if provided
+	let domain = userIdOrDomain;
+	if (userIdOrDomain.startsWith('@')) {
+		const parts = userIdOrDomain.split(':');
+		if (parts.length < 2) return null;
+		domain = parts[1];
+	}
+
+	// Remove any protocol prefix
+	domain = domain.replace(/^https?:\/\//, '');
+
+	try {
+		// Try .well-known discovery
+		const wellKnownUrl = `https://${domain}/.well-known/matrix/client`;
+		const response = await fetch(wellKnownUrl);
+
+		if (response.ok) {
+			const data = await response.json();
+			const baseUrl = data['m.homeserver']?.base_url;
+			if (baseUrl) {
+				return baseUrl.replace(/\/$/, '');
+			}
+		}
+	} catch {
+		// .well-known not available
+	}
+
+	// Fallback: assume homeserver is at the domain
+	return `https://${domain}`;
+}
+
+/**
+ * Check if a homeserver is reachable
+ */
+export async function checkHomeserver(homeserver: string): Promise<{ ok: boolean; error?: string }> {
+	let baseUrl = homeserver.trim();
+	if (!baseUrl.startsWith('http://') && !baseUrl.startsWith('https://')) {
+		baseUrl = `https://${baseUrl}`;
+	}
+
+	try {
+		const response = await fetch(`${baseUrl}/_matrix/client/versions`, {
+			method: 'GET',
+		});
+
+		if (response.ok) {
+			return { ok: true };
+		}
+
+		return { ok: false, error: `Server returned ${response.status}` };
+	} catch (err) {
+		return {
+			ok: false,
+			error: err instanceof Error ? err.message : 'Could not connect to server',
+		};
+	}
+}
+
+/**
+ * Register a new account (if registration is open)
+ */
+export async function register(
+	homeserver: string,
+	username: string,
+	password: string
+): Promise<LoginResult> {
+	await import('./polyfills');
+	const { createClient } = await import('matrix-js-sdk');
+
+	let baseUrl = homeserver.trim();
+	if (!baseUrl.startsWith('http://') && !baseUrl.startsWith('https://')) {
+		baseUrl = `https://${baseUrl}`;
+	}
+	baseUrl = baseUrl.replace(/\/$/, '');
+
+	const tempClient = createClient({ baseUrl });
+
+	try {
+		const response = await tempClient.register(username, password, null, {
+			initial_device_display_name: 'Mana Matrix Client',
+		});
+
+		return {
+			success: true,
+			credentials: {
+				homeserver: baseUrl,
+				accessToken: response.access_token!,
+				userId: response.user_id,
+				deviceId: response.device_id!,
+			},
+		};
+	} catch (err: unknown) {
+		const message = err instanceof Error ? err.message : 'Registration failed';
+
+		// Check for common errors
+		if (message.includes('M_USER_IN_USE')) {
+			return { success: false, error: 'Username is already taken' };
+		}
+		if (message.includes('M_INVALID_USERNAME')) {
+			return { success: false, error: 'Invalid username format' };
+		}
+		if (message.includes('M_FORBIDDEN')) {
+			return { success: false, error: 'Registration is disabled on this server' };
+		}
+
+		return { success: false, error: message };
+	}
+}
diff --git a/apps/matrix/apps/web/src/lib/matrix/index.ts b/apps/matrix/apps/web/src/lib/matrix/index.ts
new file mode 100644
index 000000000..27642a6ac
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/matrix/index.ts
@@ -0,0 +1,10 @@
+// Matrix client exports
+export { matrixStore } from './store.svelte';
+export {
+	loginWithPassword,
+	loginWithToken,
+	discoverHomeserver,
+	checkHomeserver,
+	register,
+} from './client';
+export * from './types';
diff --git a/apps/matrix/apps/web/src/lib/matrix/polyfills.ts b/apps/matrix/apps/web/src/lib/matrix/polyfills.ts
new file mode 100644
index 000000000..5d1648ebc
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/matrix/polyfills.ts
@@ -0,0 +1,18 @@
+/**
+ * Polyfills required for matrix-js-sdk to work in browser environment
+ * Must be imported before any matrix-js-sdk imports
+ */
+import { Buffer } from 'buffer';
+
+if (typeof window !== 'undefined') {
+	// Global object polyfill
+	window.global = window.globalThis;
+
+	// Buffer polyfill (used by matrix-js-sdk for binary data)
+	(window as Window).Buffer = Buffer;
+
+	// Process polyfill (some dependencies check process.env)
+	(window as Window).process = { env: {} };
+}
+
+export {};
diff --git a/apps/matrix/apps/web/src/lib/matrix/store.svelte.ts b/apps/matrix/apps/web/src/lib/matrix/store.svelte.ts
new file mode 100644
index 000000000..a3f980bba
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/matrix/store.svelte.ts
@@ -0,0 +1,484 @@
+import { browser } from '$app/environment';
+import type { MatrixClient, Room, MatrixEvent, RoomMember as SDKRoomMember } from 'matrix-js-sdk';
+import type { SyncState, MatrixCredentials, SimpleRoom, SimpleMessage, RoomMember } from './types';
+
+const STORAGE_KEY = 'matrix_credentials';
+
+/**
+ * Reactive Matrix store using Svelte 5 runes
+ */
+class MatrixStore {
+	// ─────────────────────────────────────────────────────────
+	// Private State
+	// ─────────────────────────────────────────────────────────
+	private _client = $state<MatrixClient | null>(null);
+	private _syncState = $state<SyncState>('STOPPED');
+	private _rooms = $state<Room[]>([]);
+	private _currentRoomId = $state<string | null>(null);
+	private _timeline = $state<MatrixEvent[]>([]);
+	private _typingUsers = $state<Map<string, string[]>>(new Map());
+	private _error = $state<string | null>(null);
+	private _initialized = $state(false);
+
+	// ─────────────────────────────────────────────────────────
+	// Public Getters
+	// ─────────────────────────────────────────────────────────
+	get client() {
+		return this._client;
+	}
+	get syncState() {
+		return this._syncState;
+	}
+	get error() {
+		return this._error;
+	}
+	get initialized() {
+		return this._initialized;
+	}
+	get currentRoomId() {
+		return this._currentRoomId;
+	}
+
+	// ─────────────────────────────────────────────────────────
+	// Derived State
+	// ─────────────────────────────────────────────────────────
+
+	/** Is the client ready to use? */
+	isReady = $derived(this._syncState === 'PREPARED' || this._syncState === 'SYNCING');
+
+	/** Is currently syncing? */
+	isSyncing = $derived(this._syncState === 'SYNCING' || this._syncState === 'CATCHUP');
+
+	/** Current user ID */
+	userId = $derived(this._client?.getUserId() || null);
+
+	/** Simplified room list sorted by last activity */
+	rooms = $derived<SimpleRoom[]>(
+		this._rooms
+			.map((room) => this.roomToSimpleRoom(room))
+			.sort((a, b) => (b.lastMessageTime || 0) - (a.lastMessageTime || 0))
+	);
+
+	/** Direct message rooms */
+	directRooms = $derived(this.rooms.filter((r) => r.isDirect));
+
+	/** Group rooms (non-DM) */
+	groupRooms = $derived(this.rooms.filter((r) => !r.isDirect));
+
+	/** Current selected room */
+	currentRoom = $derived(
+		this._currentRoomId ? this._rooms.find((r) => r.roomId === this._currentRoomId) || null : null
+	);
+
+	/** Current room as SimpleRoom */
+	currentSimpleRoom = $derived(this.currentRoom ? this.roomToSimpleRoom(this.currentRoom) : null);
+
+	/** Messages in current room */
+	messages = $derived<SimpleMessage[]>(
+		this._timeline
+			.filter((e) => e.getType() === 'm.room.message')
+			.map((e) => this.eventToSimpleMessage(e))
+	);
+
+	/** Users currently typing in current room */
+	currentRoomTyping = $derived(
+		this._currentRoomId ? this._typingUsers.get(this._currentRoomId) || [] : []
+	);
+
+	/** Total unread count across all rooms */
+	totalUnreadCount = $derived(this.rooms.reduce((sum, r) => sum + r.unreadCount, 0));
+
+	// ─────────────────────────────────────────────────────────
+	// Initialization
+	// ─────────────────────────────────────────────────────────
+
+	/**
+	 * Initialize the Matrix client
+	 * @param credentials Optional credentials, will load from storage if not provided
+	 */
+	async initialize(credentials?: MatrixCredentials): Promise<boolean> {
+		if (!browser) return false;
+		if (this._initialized && this._client) return true;
+
+		// Load polyfills first
+		await import('./polyfills');
+
+		// Get credentials
+		const creds = credentials || this.loadCredentials();
+		if (!creds) {
+			this._error = 'No credentials available';
+			return false;
+		}
+
+		try {
+			const sdk = await import('matrix-js-sdk');
+
+			this._client = sdk.createClient({
+				baseUrl: creds.homeserver,
+				accessToken: creds.accessToken,
+				userId: creds.userId,
+				deviceId: creds.deviceId,
+				timelineSupport: true,
+			});
+
+			this.setupEventHandlers(sdk);
+
+			await this._client.startClient({
+				initialSyncLimit: 20,
+				lazyLoadMembers: true,
+			});
+
+			this.saveCredentials(creds);
+			this._initialized = true;
+			this._error = null;
+
+			return true;
+		} catch (err) {
+			this._error = err instanceof Error ? err.message : 'Failed to initialize Matrix client';
+			console.error('Matrix initialization error:', err);
+			return false;
+		}
+	}
+
+	/**
+	 * Setup event handlers for Matrix SDK events
+	 */
+	private setupEventHandlers(sdk: typeof import('matrix-js-sdk')) {
+		if (!this._client) return;
+
+		// Sync state changes
+		this._client.on(sdk.ClientEvent.Sync, (state, prevState) => {
+			this._syncState = state as SyncState;
+
+			if (state === 'PREPARED') {
+				this._rooms = this._client!.getRooms();
+				console.log(`Matrix sync prepared, ${this._rooms.length} rooms loaded`);
+			}
+
+			if (state === 'ERROR') {
+				this._error = 'Sync error occurred';
+			}
+		});
+
+		// Room timeline updates (new messages)
+		this._client.on(sdk.RoomEvent.Timeline, (event, room, toStartOfTimeline) => {
+			// Skip historical events from pagination
+			if (toStartOfTimeline) return;
+
+			// Update rooms list
+			this._rooms = this._client!.getRooms();
+
+			// Update timeline if we're in this room
+			if (room?.roomId === this._currentRoomId) {
+				this._timeline = [...(room.getLiveTimeline().getEvents() || [])];
+			}
+		});
+
+		// Typing indicators
+		this._client.on(sdk.RoomMemberEvent.Typing, (event, member) => {
+			const roomId = event.getRoomId();
+			if (!roomId) return;
+
+			const room = this._client!.getRoom(roomId);
+			const typingMembers =
+				room
+					?.getMembersWithMembership('join')
+					.filter((m) => m.typing && m.userId !== this._client!.getUserId())
+					.map((m) => m.name || m.userId) || [];
+
+			// Trigger reactivity by creating new Map
+			const newMap = new Map(this._typingUsers);
+			newMap.set(roomId, typingMembers);
+			this._typingUsers = newMap;
+		});
+
+		// Room membership changes (invites, joins, leaves)
+		this._client.on(sdk.RoomEvent.MyMembership, (room, membership, prevMembership) => {
+			console.log(`Membership changed: ${room.roomId} - ${prevMembership} -> ${membership}`);
+			this._rooms = this._client!.getRooms();
+		});
+
+		// Room name/state changes
+		this._client.on(sdk.RoomStateEvent.Events, (event, state, prevEvent) => {
+			// Trigger reactivity for room updates
+			this._rooms = this._client!.getRooms();
+		});
+	}
+
+	// ─────────────────────────────────────────────────────────
+	// Room Actions
+	// ─────────────────────────────────────────────────────────
+
+	/**
+	 * Select a room to view
+	 */
+	selectRoom(roomId: string) {
+		this._currentRoomId = roomId;
+		const room = this._client?.getRoom(roomId);
+
+		if (room) {
+			this._timeline = room.getLiveTimeline().getEvents() || [];
+
+			// Mark as read
+			const lastEvent = this._timeline[this._timeline.length - 1];
+			if (lastEvent) {
+				this._client?.sendReadReceipt(lastEvent).catch(console.error);
+			}
+		} else {
+			this._timeline = [];
+		}
+	}
+
+	/**
+	 * Clear current room selection
+	 */
+	clearRoom() {
+		this._currentRoomId = null;
+		this._timeline = [];
+	}
+
+	/**
+	 * Join a room by ID or alias
+	 */
+	async joinRoom(roomIdOrAlias: string): Promise<boolean> {
+		if (!this._client) return false;
+
+		try {
+			await this._client.joinRoom(roomIdOrAlias);
+			this._rooms = this._client.getRooms();
+			return true;
+		} catch (err) {
+			this._error = err instanceof Error ? err.message : 'Failed to join room';
+			return false;
+		}
+	}
+
+	/**
+	 * Leave a room
+	 */
+	async leaveRoom(roomId: string): Promise<boolean> {
+		if (!this._client) return false;
+
+		try {
+			await this._client.leave(roomId);
+
+			if (this._currentRoomId === roomId) {
+				this.clearRoom();
+			}
+
+			this._rooms = this._client.getRooms();
+			return true;
+		} catch (err) {
+			this._error = err instanceof Error ? err.message : 'Failed to leave room';
+			return false;
+		}
+	}
+
+	/**
+	 * Create a new room
+	 */
+	async createRoom(options: {
+		name?: string;
+		topic?: string;
+		isDirect?: boolean;
+		invite?: string[];
+	}): Promise<string | null> {
+		if (!this._client) return null;
+
+		try {
+			const result = await this._client.createRoom({
+				name: options.name,
+				topic: options.topic,
+				is_direct: options.isDirect,
+				invite: options.invite,
+				preset: options.isDirect ? 'trusted_private_chat' : 'private_chat',
+			});
+
+			this._rooms = this._client.getRooms();
+			return result.room_id;
+		} catch (err) {
+			this._error = err instanceof Error ? err.message : 'Failed to create room';
+			return null;
+		}
+	}
+
+	// ─────────────────────────────────────────────────────────
+	// Message Actions
+	// ─────────────────────────────────────────────────────────
+
+	/**
+	 * Send a text message to current room
+	 */
+	async sendMessage(body: string): Promise<boolean> {
+		if (!this._client || !this._currentRoomId) return false;
+
+		try {
+			await this._client.sendTextMessage(this._currentRoomId, body);
+			return true;
+		} catch (err) {
+			this._error = err instanceof Error ? err.message : 'Failed to send message';
+			return false;
+		}
+	}
+
+	/**
+	 * Send typing indicator
+	 */
+	async sendTyping(typing: boolean): Promise<void> {
+		if (!this._client || !this._currentRoomId) return;
+
+		try {
+			await this._client.sendTyping(this._currentRoomId, typing, typing ? 30000 : 0);
+		} catch (err) {
+			// Ignore typing errors
+		}
+	}
+
+	/**
+	 * Load more messages (pagination)
+	 */
+	async loadMoreMessages(limit = 50): Promise<boolean> {
+		if (!this._client || !this._currentRoomId) return false;
+
+		const room = this._client.getRoom(this._currentRoomId);
+		if (!room) return false;
+
+		try {
+			await this._client.scrollback(room, limit);
+			this._timeline = room.getLiveTimeline().getEvents() || [];
+			return true;
+		} catch (err) {
+			this._error = err instanceof Error ? err.message : 'Failed to load messages';
+			return false;
+		}
+	}
+
+	// ─────────────────────────────────────────────────────────
+	// Cleanup
+	// ─────────────────────────────────────────────────────────
+
+	/**
+	 * Stop the client and clean up
+	 */
+	destroy() {
+		this._client?.stopClient();
+		this._client = null;
+		this._syncState = 'STOPPED';
+		this._rooms = [];
+		this._timeline = [];
+		this._currentRoomId = null;
+		this._typingUsers = new Map();
+		this._initialized = false;
+	}
+
+	/**
+	 * Logout and clear credentials
+	 */
+	logout() {
+		this.destroy();
+		if (browser) {
+			localStorage.removeItem(STORAGE_KEY);
+		}
+	}
+
+	// ─────────────────────────────────────────────────────────
+	// Helper Methods
+	// ─────────────────────────────────────────────────────────
+
+	/**
+	 * Convert SDK Room to SimpleRoom
+	 */
+	private roomToSimpleRoom(room: Room): SimpleRoom {
+		const lastEvent = room
+			.getLiveTimeline()
+			.getEvents()
+			.filter((e) => e.getType() === 'm.room.message')
+			.pop();
+
+		return {
+			id: room.roomId,
+			name: room.name || 'Unnamed Room',
+			topic: room.currentState.getStateEvents('m.room.topic', '')?.[0]?.getContent()?.topic,
+			avatar: room.getAvatarUrl(this._client?.baseUrl || '', 48, 48, 'scale') || undefined,
+			lastMessage: lastEvent?.getContent()?.body,
+			lastMessageSender: lastEvent ? this.getSenderName(lastEvent) : undefined,
+			lastMessageTime: room.getLastActiveTimestamp() || undefined,
+			unreadCount: room.getUnreadNotificationCount('total') || 0,
+			highlightCount: room.getUnreadNotificationCount('highlight') || 0,
+			isDirect: this.isDirectRoom(room),
+			isEncrypted: room.hasEncryptionStateEvent(),
+			memberCount: room.getJoinedMemberCount(),
+		};
+	}
+
+	/**
+	 * Convert SDK MatrixEvent to SimpleMessage
+	 */
+	private eventToSimpleMessage(event: MatrixEvent): SimpleMessage {
+		const content = event.getContent();
+		const relatesTo = content['m.relates_to'];
+
+		return {
+			id: event.getId() || '',
+			sender: event.getSender() || '',
+			senderName: this.getSenderName(event),
+			body: content.body || '',
+			formattedBody: content.formatted_body,
+			timestamp: event.getTs(),
+			type: content.msgtype || 'm.text',
+			isOwn: event.getSender() === this._client?.getUserId(),
+			replyTo: relatesTo?.['m.in_reply_to']?.event_id,
+			edited: !!event.replacingEvent(),
+		};
+	}
+
+	/**
+	 * Get display name for message sender
+	 */
+	private getSenderName(event: MatrixEvent): string {
+		const room = this._client?.getRoom(event.getRoomId() || '');
+		const member = room?.getMember(event.getSender() || '');
+		return member?.name || event.getSender()?.split(':')[0].substring(1) || 'Unknown';
+	}
+
+	/**
+	 * Check if room is a direct message room
+	 */
+	private isDirectRoom(room: Room): boolean {
+		const dominated = this._client?.getAccountData('m.direct')?.getContent() || {};
+		return Object.values(dominated).flat().includes(room.roomId);
+	}
+
+	/**
+	 * Load credentials from localStorage
+	 */
+	private loadCredentials(): MatrixCredentials | null {
+		if (!browser) return null;
+
+		try {
+			const stored = localStorage.getItem(STORAGE_KEY);
+			return stored ? JSON.parse(stored) : null;
+		} catch {
+			return null;
+		}
+	}
+
+	/**
+	 * Save credentials to localStorage
+	 */
+	private saveCredentials(creds: MatrixCredentials) {
+		if (browser) {
+			localStorage.setItem(STORAGE_KEY, JSON.stringify(creds));
+		}
+	}
+
+	/**
+	 * Check if credentials exist in storage
+	 */
+	hasStoredCredentials(): boolean {
+		return this.loadCredentials() !== null;
+	}
+}
+
+// Export singleton instance
+export const matrixStore = new MatrixStore();
diff --git a/apps/matrix/apps/web/src/lib/matrix/types.ts b/apps/matrix/apps/web/src/lib/matrix/types.ts
new file mode 100644
index 000000000..65c353180
--- /dev/null
+++ b/apps/matrix/apps/web/src/lib/matrix/types.ts
@@ -0,0 +1,83 @@
+import type { Room, MatrixEvent, MatrixClient } from 'matrix-js-sdk';
+
+/**
+ * Matrix sync states
+ */
+export type SyncState = 'STOPPED' | 'PREPARED' | 'SYNCING' | 'ERROR' | 'RECONNECTING' | 'CATCHUP';
+
+/**
+ * Credentials for Matrix authentication
+ */
+export interface MatrixCredentials {
+	homeserver: string;
+	accessToken: string;
+	userId: string;
+	deviceId: string;
+}
+
+/**
+ * Simplified message for UI rendering
+ */
+export interface SimpleMessage {
+	id: string;
+	sender: string;
+	senderName: string;
+	body: string;
+	formattedBody?: string;
+	timestamp: number;
+	type: MessageType;
+	isOwn: boolean;
+	replyTo?: string;
+	edited?: boolean;
+}
+
+export type MessageType = 'm.text' | 'm.image' | 'm.file' | 'm.audio' | 'm.video' | 'm.emote' | 'm.notice';
+
+/**
+ * Simplified room for UI rendering
+ */
+export interface SimpleRoom {
+	id: string;
+	name: string;
+	topic?: string;
+	avatar?: string;
+	lastMessage?: string;
+	lastMessageSender?: string;
+	lastMessageTime?: number;
+	unreadCount: number;
+	highlightCount: number;
+	isDirect: boolean;
+	isEncrypted: boolean;
+	memberCount: number;
+}
+
+/**
+ * Room member info
+ */
+export interface RoomMember {
+	userId: string;
+	displayName: string;
+	avatarUrl?: string;
+	membership: 'join' | 'invite' | 'leave' | 'ban' | 'knock';
+	powerLevel: number;
+}
+
+/**
+ * Login result
+ */
+export interface LoginResult {
+	success: boolean;
+	credentials?: MatrixCredentials;
+	error?: string;
+}
+
+/**
+ * Matrix store state (for debugging)
+ */
+export interface MatrixStoreState {
+	syncState: SyncState;
+	roomCount: number;
+	currentRoomId: string | null;
+	messageCount: number;
+	error: string | null;
+}
diff --git a/apps/matrix/apps/web/src/routes/(app)/+layout.svelte b/apps/matrix/apps/web/src/routes/(app)/+layout.svelte
new file mode 100644
index 000000000..b505020fc
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/(app)/+layout.svelte
@@ -0,0 +1,105 @@
+<script lang="ts">
+	import { matrixStore } from '$lib/matrix';
+	import { goto } from '$app/navigation';
+	import { onMount, onDestroy } from 'svelte';
+	import type { Snippet } from 'svelte';
+	import { Loader2, AlertCircle, RefreshCw } from 'lucide-svelte';
+
+	interface Props {
+		children: Snippet;
+	}
+
+	let { children }: Props = $props();
+	let loading = $state(true);
+	let initError = $state<string | null>(null);
+
+	onMount(async () => {
+		// Check if already initialized
+		if (matrixStore.isReady) {
+			loading = false;
+			return;
+		}
+
+		// Try to initialize
+		const success = await matrixStore.initialize();
+
+		if (!success) {
+			// Check if no credentials (should redirect to login)
+			if (!matrixStore.hasStoredCredentials()) {
+				goto('/login');
+				return;
+			}
+			// Has credentials but failed to init
+			initError = matrixStore.error || 'Failed to connect to Matrix server';
+		}
+
+		loading = false;
+	});
+
+	onDestroy(() => {
+		// Don't destroy on navigation within app routes
+		// matrixStore.destroy();
+	});
+
+	async function retry() {
+		loading = true;
+		initError = null;
+		const success = await matrixStore.initialize();
+		if (!success) {
+			initError = matrixStore.error || 'Failed to connect';
+		}
+		loading = false;
+	}
+
+	function logout() {
+		matrixStore.logout();
+		goto('/login');
+	}
+</script>
+
+{#if loading}
+	<!-- Loading State -->
+	<div class="flex h-screen flex-col items-center justify-center gap-4">
+		<Loader2 class="h-12 w-12 animate-spin text-primary" />
+		<div class="text-center">
+			<p class="font-medium">Connecting to Matrix...</p>
+			<p class="text-sm text-base-content/60">
+				{#if matrixStore.syncState === 'PREPARED'}
+					Preparing sync...
+				{:else if matrixStore.syncState === 'SYNCING'}
+					Syncing messages...
+				{:else if matrixStore.syncState === 'CATCHUP'}
+					Catching up...
+				{:else}
+					Initializing...
+				{/if}
+			</p>
+		</div>
+	</div>
+{:else if initError}
+	<!-- Error State -->
+	<div class="flex h-screen flex-col items-center justify-center gap-4 p-4">
+		<div class="rounded-full bg-error/10 p-4">
+			<AlertCircle class="h-12 w-12 text-error" />
+		</div>
+		<div class="text-center">
+			<h2 class="text-xl font-semibold">Connection Failed</h2>
+			<p class="mt-2 max-w-md text-base-content/60">{initError}</p>
+		</div>
+		<div class="flex gap-2">
+			<button class="btn btn-primary" onclick={retry}>
+				<RefreshCw class="h-4 w-4" />
+				Retry
+			</button>
+			<button class="btn btn-ghost" onclick={logout}> Sign Out </button>
+		</div>
+	</div>
+{:else if matrixStore.isReady}
+	<!-- Ready - Render children -->
+	{@render children()}
+{:else}
+	<!-- Unknown state - redirect to login -->
+	<div class="flex h-screen items-center justify-center">
+		<p class="text-base-content/60">Redirecting...</p>
+	</div>
+{/if}
diff --git a/apps/matrix/apps/web/src/routes/(app)/chat/+page.svelte b/apps/matrix/apps/web/src/routes/(app)/chat/+page.svelte
new file mode 100644
index 000000000..8d8fe32ee
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/(app)/chat/+page.svelte
@@ -0,0 +1,105 @@
+<script lang="ts">
+	import { matrixStore } from '$lib/matrix';
+	import { RoomList, RoomHeader, Timeline, MessageInput } from '$lib/components/chat';
+	import { goto } from '$app/navigation';
+	import { Settings, LogOut, MessageSquare } from 'lucide-svelte';
+
+	let sidebarOpen = $state(true);
+
+	function toggleSidebar() {
+		sidebarOpen = !sidebarOpen;
+	}
+
+	function handleLogout() {
+		matrixStore.logout();
+		goto('/login');
+	}
+</script>
+
+<div class="flex h-screen overflow-hidden bg-base-100">
+	<!-- Sidebar -->
+	<aside
+		class="flex w-80 flex-shrink-0 flex-col border-r border-base-300 bg-base-200 transition-all duration-300 ease-in-out"
+		class:hidden={!sidebarOpen}
+		class:lg:flex={true}
+	>
+		<!-- Sidebar Header -->
+		<header class="flex items-center justify-between border-b border-base-300 p-4">
+			<div class="flex items-center gap-2">
+				<MessageSquare class="h-6 w-6 text-primary" />
+				<h1 class="text-xl font-bold">Mana Matrix</h1>
+			</div>
+			<div class="dropdown dropdown-end">
+				<button tabindex="0" class="btn btn-ghost btn-sm btn-circle">
+					<Settings class="h-5 w-5" />
+				</button>
+				<ul
+					tabindex="0"
+					class="dropdown-content menu rounded-box z-50 w-52 bg-base-100 p-2 shadow-lg"
+				>
+					<li>
+						<a href="/settings">
+							<Settings class="h-4 w-4" />
+							Settings
+						</a>
+					</li>
+					<li>
+						<button onclick={handleLogout} class="text-error">
+							<LogOut class="h-4 w-4" />
+							Sign out
+						</button>
+					</li>
+				</ul>
+			</div>
+		</header>
+
+		<!-- User Info -->
+		<div class="border-b border-base-300 px-4 py-2">
+			<p class="truncate text-sm font-medium">{matrixStore.userId}</p>
+			<p class="flex items-center gap-1 text-xs text-base-content/60">
+				<span class="h-2 w-2 rounded-full bg-success"></span>
+				{matrixStore.syncState === 'SYNCING' ? 'Connected' : matrixStore.syncState}
+			</p>
+		</div>
+
+		<!-- Room List -->
+		<div class="flex-1 overflow-hidden">
+			<RoomList />
+		</div>
+	</aside>
+
+	<!-- Main Chat Area -->
+	<main class="flex flex-1 flex-col overflow-hidden">
+		{#if matrixStore.currentRoom}
+			<!-- Room Header -->
+			<RoomHeader onMenuClick={toggleSidebar} />
+
+			<!-- Timeline -->
+			<Timeline />
+
+			<!-- Message Input -->
+			<MessageInput />
+		{:else}
+			<!-- No Room Selected -->
+			<div class="flex flex-1 flex-col items-center justify-center gap-4 p-8 text-base-content/50">
+				<MessageSquare class="h-16 w-16" />
+				<div class="text-center">
+					<h2 class="text-xl font-semibold text-base-content">Welcome to Mana Matrix</h2>
+					<p class="mt-2">Select a conversation from the sidebar to start chatting</p>
+				</div>
+
+				<!-- Stats -->
+				<div class="mt-8 flex gap-8 text-center">
+					<div>
+						<p class="text-3xl font-bold text-base-content">{matrixStore.rooms.length}</p>
+						<p class="text-sm">Rooms</p>
+					</div>
+					<div>
+						<p class="text-3xl font-bold text-base-content">{matrixStore.totalUnreadCount}</p>
+						<p class="text-sm">Unread</p>
+					</div>
+				</div>
+			</div>
+		{/if}
+	</main>
+</div>
diff --git a/apps/matrix/apps/web/src/routes/(app)/chat/[roomId]/+page.svelte b/apps/matrix/apps/web/src/routes/(app)/chat/[roomId]/+page.svelte
new file mode 100644
index 000000000..54f9b53a8
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/(app)/chat/[roomId]/+page.svelte
@@ -0,0 +1,26 @@
+<script lang="ts">
+	import { page } from '$app/stores';
+	import { matrixStore } from '$lib/matrix';
+	import { goto } from '$app/navigation';
+	import { onMount } from 'svelte';
+
+	// Get roomId from URL and select that room
+	onMount(() => {
+		const roomId = $page.params.roomId;
+		if (roomId) {
+			// URL decode the room ID (Matrix room IDs contain special chars)
+			const decodedRoomId = decodeURIComponent(roomId);
+			matrixStore.selectRoom(decodedRoomId);
+		}
+	});
+
+	// Redirect to main chat page - the room selection is handled there
+	$effect(() => {
+		goto('/chat');
+	});
+</script>
+
+<!-- This page just handles deep-linking to specific rooms -->
+<div class="flex h-screen items-center justify-center">
+	<p class="text-base-content/60">Loading room...</p>
+</div>
diff --git a/apps/matrix/apps/web/src/routes/(app)/settings/+page.svelte b/apps/matrix/apps/web/src/routes/(app)/settings/+page.svelte
new file mode 100644
index 000000000..c43f404dc
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/(app)/settings/+page.svelte
@@ -0,0 +1,123 @@
+<script lang="ts">
+	import { matrixStore } from '$lib/matrix';
+	import { goto } from '$app/navigation';
+	import { ArrowLeft, User, Bell, Palette, Shield, LogOut, Server } from 'lucide-svelte';
+
+	function handleLogout() {
+		matrixStore.logout();
+		goto('/login');
+	}
+</script>
+
+<div class="flex h-screen flex-col bg-base-100">
+	<!-- Header -->
+	<header class="flex items-center gap-4 border-b border-base-300 p-4">
+		<a href="/chat" class="btn btn-ghost btn-sm btn-circle">
+			<ArrowLeft class="h-5 w-5" />
+		</a>
+		<h1 class="text-xl font-bold">Settings</h1>
+	</header>
+
+	<!-- Content -->
+	<div class="flex-1 overflow-y-auto p-4">
+		<div class="mx-auto max-w-2xl space-y-6">
+			<!-- Profile Section -->
+			<section class="card bg-base-200">
+				<div class="card-body">
+					<h2 class="card-title">
+						<User class="h-5 w-5" />
+						Profile
+					</h2>
+					<div class="mt-4 flex items-center gap-4">
+						<div class="avatar placeholder">
+							<div class="w-16 rounded-full bg-neutral text-neutral-content">
+								<span class="text-2xl">
+									{matrixStore.userId?.charAt(1).toUpperCase() || '?'}
+								</span>
+							</div>
+						</div>
+						<div>
+							<p class="font-medium">{matrixStore.userId}</p>
+							<p class="text-sm text-base-content/60">Matrix ID</p>
+						</div>
+					</div>
+				</div>
+			</section>
+
+			<!-- Server Section -->
+			<section class="card bg-base-200">
+				<div class="card-body">
+					<h2 class="card-title">
+						<Server class="h-5 w-5" />
+						Server
+					</h2>
+					<div class="mt-2 space-y-2 text-sm">
+						<div class="flex justify-between">
+							<span class="text-base-content/60">Homeserver</span>
+							<span class="font-mono">{matrixStore.client?.getHomeserverUrl() || 'Unknown'}</span>
+						</div>
+						<div class="flex justify-between">
+							<span class="text-base-content/60">Sync Status</span>
+							<span
+								class="badge"
+								class:badge-success={matrixStore.isReady}
+								class:badge-warning={!matrixStore.isReady}
+							>
+								{matrixStore.syncState}
+							</span>
+						</div>
+						<div class="flex justify-between">
+							<span class="text-base-content/60">Rooms</span>
+							<span>{matrixStore.rooms.length}</span>
+						</div>
+					</div>
+				</div>
+			</section>
+
+			<!-- Appearance Section (Placeholder) -->
+			<section class="card bg-base-200">
+				<div class="card-body">
+					<h2 class="card-title">
+						<Palette class="h-5 w-5" />
+						Appearance
+					</h2>
+					<p class="text-sm text-base-content/60">Theme and display settings coming soon...</p>
+				</div>
+			</section>
+
+			<!-- Notifications Section (Placeholder) -->
+			<section class="card bg-base-200">
+				<div class="card-body">
+					<h2 class="card-title">
+						<Bell class="h-5 w-5" />
+						Notifications
+					</h2>
+					<p class="text-sm text-base-content/60">Notification settings coming soon...</p>
+				</div>
+			</section>
+
+			<!-- Security Section (Placeholder) -->
+			<section class="card bg-base-200">
+				<div class="card-body">
+					<h2 class="card-title">
+						<Shield class="h-5 w-5" />
+						Security
+					</h2>
+					<p class="text-sm text-base-content/60">
+						End-to-end encryption settings coming in Phase 2...
+					</p>
+				</div>
+			</section>
+
+			<!-- Logout -->
+			<section class="card bg-base-200">
+				<div class="card-body">
+					<button class="btn btn-error w-full" onclick={handleLogout}>
+						<LogOut class="h-5 w-5" />
+						Sign Out
+					</button>
+				</div>
+			</section>
+		</div>
+	</div>
+</div>
diff --git a/apps/matrix/apps/web/src/routes/(auth)/+layout.svelte b/apps/matrix/apps/web/src/routes/(auth)/+layout.svelte
new file mode 100644
index 000000000..73195633b
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/(auth)/+layout.svelte
@@ -0,0 +1,13 @@
+<script lang="ts">
+	import type { Snippet } from 'svelte';
+
+	interface Props {
+		children: Snippet;
+	}
+
+	let { children }: Props = $props();
+</script>
+
+<div class="flex min-h-screen items-center justify-center bg-base-100 p-4">
+	{@render children()}
+</div>
diff --git a/apps/matrix/apps/web/src/routes/(auth)/login/+page.svelte b/apps/matrix/apps/web/src/routes/(auth)/login/+page.svelte
new file mode 100644
index 000000000..375f4c046
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/(auth)/login/+page.svelte
@@ -0,0 +1,201 @@
+<script lang="ts">
+	import { goto } from '$app/navigation';
+	import { loginWithPassword, discoverHomeserver, checkHomeserver, matrixStore } from '$lib/matrix';
+	import { Eye, EyeOff, Loader2, Server, User, Lock, AlertCircle } from 'lucide-svelte';
+
+	// Form state
+	let homeserver = $state('matrix.mana.how');
+	let username = $state('');
+	let password = $state('');
+	let showPassword = $state(false);
+
+	// UI state
+	let loading = $state(false);
+	let checkingServer = $state(false);
+	let error = $state<string | null>(null);
+	let serverValid = $state<boolean | null>(null);
+
+	// Auto-discover homeserver when username looks like a full Matrix ID
+	let discoverTimeout: ReturnType<typeof setTimeout>;
+
+	function handleUsernameInput() {
+		if (username.includes(':')) {
+			clearTimeout(discoverTimeout);
+			discoverTimeout = setTimeout(async () => {
+				const discovered = await discoverHomeserver(username);
+				if (discovered) {
+					homeserver = discovered.replace(/^https?:\/\//, '');
+					await validateServer();
+				}
+			}, 500);
+		}
+	}
+
+	async function validateServer() {
+		if (!homeserver.trim()) {
+			serverValid = null;
+			return;
+		}
+
+		checkingServer = true;
+		const result = await checkHomeserver(homeserver);
+		serverValid = result.ok;
+		checkingServer = false;
+
+		if (!result.ok) {
+			error = `Server check failed: ${result.error}`;
+		} else {
+			error = null;
+		}
+	}
+
+	async function handleLogin(e: Event) {
+		e.preventDefault();
+
+		if (!username.trim() || !password.trim()) {
+			error = 'Please enter username and password';
+			return;
+		}
+
+		loading = true;
+		error = null;
+
+		const result = await loginWithPassword(homeserver, username, password);
+
+		if (result.success && result.credentials) {
+			const initialized = await matrixStore.initialize(result.credentials);
+
+			if (initialized) {
+				goto('/chat');
+			} else {
+				error = matrixStore.error || 'Failed to initialize Matrix client';
+			}
+		} else {
+			error = result.error || 'Login failed';
+		}
+
+		loading = false;
+	}
+</script>
+
+<div class="card w-full max-w-md bg-base-200 shadow-xl">
+	<div class="card-body">
+		<!-- Header -->
+		<div class="mb-4 text-center">
+			<h1 class="text-2xl font-bold">Mana Matrix</h1>
+			<p class="text-sm text-base-content/60">Sign in to your Matrix account</p>
+		</div>
+
+		<!-- Error Alert -->
+		{#if error}
+			<div class="alert alert-error mb-4">
+				<AlertCircle class="h-5 w-5" />
+				<span>{error}</span>
+			</div>
+		{/if}
+
+		<!-- Login Form -->
+		<form onsubmit={handleLogin} class="space-y-4">
+			<!-- Homeserver -->
+			<div class="form-control">
+				<label class="label" for="homeserver">
+					<span class="label-text flex items-center gap-2">
+						<Server class="h-4 w-4" />
+						Homeserver
+					</span>
+					{#if checkingServer}
+						<span class="label-text-alt">
+							<Loader2 class="h-4 w-4 animate-spin" />
+						</span>
+					{:else if serverValid === true}
+						<span class="label-text-alt text-success">Connected</span>
+					{:else if serverValid === false}
+						<span class="label-text-alt text-error">Unreachable</span>
+					{/if}
+				</label>
+				<input
+					id="homeserver"
+					type="text"
+					bind:value={homeserver}
+					onblur={validateServer}
+					class="input input-bordered"
+					class:input-success={serverValid === true}
+					class:input-error={serverValid === false}
+					placeholder="matrix.org"
+					disabled={loading}
+				/>
+			</div>
+
+			<!-- Username -->
+			<div class="form-control">
+				<label class="label" for="username">
+					<span class="label-text flex items-center gap-2">
+						<User class="h-4 w-4" />
+						Username
+					</span>
+				</label>
+				<input
+					id="username"
+					type="text"
+					bind:value={username}
+					oninput={handleUsernameInput}
+					class="input input-bordered"
+					placeholder="@user:matrix.org or username"
+					disabled={loading}
+					autocomplete="username"
+				/>
+			</div>
+
+			<!-- Password -->
+			<div class="form-control">
+				<label class="label" for="password">
+					<span class="label-text flex items-center gap-2">
+						<Lock class="h-4 w-4" />
+						Password
+					</span>
+				</label>
+				<div class="relative">
+					<input
+						id="password"
+						type={showPassword ? 'text' : 'password'}
+						bind:value={password}
+						class="input input-bordered w-full pr-12"
+						placeholder="Your password"
+						disabled={loading}
+						autocomplete="current-password"
+					/>
+					<button
+						type="button"
+						class="absolute right-3 top-1/2 -translate-y-1/2 text-base-content/50 hover:text-base-content"
+						onclick={() => (showPassword = !showPassword)}
+						tabindex={-1}
+					>
+						{#if showPassword}
+							<EyeOff class="h-5 w-5" />
+						{:else}
+							<Eye class="h-5 w-5" />
+						{/if}
+					</button>
+				</div>
+			</div>
+
+			<!-- Submit Button -->
+			<button type="submit" class="btn btn-primary w-full" disabled={loading}>
+				{#if loading}
+					<Loader2 class="h-5 w-5 animate-spin" />
+					Signing in...
+				{:else}
+					Sign In
+				{/if}
+			</button>
+		</form>
+
+		<!-- Footer -->
+		<div class="mt-4 text-center text-sm text-base-content/60">
+			<p>
+				Don't have an account?
+				<a href="/register" class="link link-primary">Register</a>
+			</p>
+		</div>
+	</div>
+</div>
diff --git a/apps/matrix/apps/web/src/routes/+layout.svelte b/apps/matrix/apps/web/src/routes/+layout.svelte
new file mode 100644
index 000000000..f980c8560
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/+layout.svelte
@@ -0,0 +1,17 @@
+<script lang="ts">
+	import '../app.css';
+	import type { Snippet } from 'svelte';
+
+	interface Props {
+		children: Snippet;
+	}
+
+	let { children }: Props = $props();
+</script>
+
+<svelte:head>
+	<title>Mana Matrix</title>
+	<meta name="description" content="Self-hosted Matrix chat client" />
+</svelte:head>
+
+{@render children()}
diff --git a/apps/matrix/apps/web/src/routes/+page.svelte b/apps/matrix/apps/web/src/routes/+page.svelte
new file mode 100644
index 000000000..729286fbd
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/+page.svelte
@@ -0,0 +1,33 @@
+<script lang="ts">
+	import { goto } from '$app/navigation';
+	import { onMount } from 'svelte';
+	import { browser } from '$app/environment';
+	import { matrixStore } from '$lib/matrix';
+	import { Loader2 } from 'lucide-svelte';
+
+	let checking = $state(true);
+
+	onMount(async () => {
+		if (!browser) return;
+
+		// Check if we have stored credentials
+		if (matrixStore.hasStoredCredentials()) {
+			// Try to initialize with stored credentials
+			const success = await matrixStore.initialize();
+			if (success) {
+				goto('/chat');
+				return;
+			}
+		}
+
+		// No valid session, go to login
+		goto('/login');
+	});
+</script>
+
+<div class="flex h-screen items-center justify-center">
+	<div class="text-center">
+		<Loader2 class="mx-auto h-8 w-8 animate-spin text-primary" />
+		<p class="mt-4 text-base-content/60">Loading...</p>
+	</div>
+</div>
diff --git a/apps/matrix/apps/web/src/routes/health/+server.ts b/apps/matrix/apps/web/src/routes/health/+server.ts
new file mode 100644
index 000000000..0b1fdd950
--- /dev/null
+++ b/apps/matrix/apps/web/src/routes/health/+server.ts
@@ -0,0 +1,17 @@
+import type { RequestHandler } from '@sveltejs/kit';
+
+export const GET: RequestHandler = async () => {
+	return new Response(
+		JSON.stringify({
+			status: 'ok',
+			timestamp: new Date().toISOString(),
+			service: 'matrix-web',
+		}),
+		{
+			status: 200,
+			headers: {
+				'Content-Type': 'application/json',
+			},
+		}
+	);
+};
diff --git a/apps/matrix/apps/web/svelte.config.js b/apps/matrix/apps/web/svelte.config.js
new file mode 100644
index 000000000..a7a917e4c
--- /dev/null
+++ b/apps/matrix/apps/web/svelte.config.js
@@ -0,0 +1,14 @@
+import adapter from '@sveltejs/adapter-node';
+import { vitePreprocess } from '@sveltejs/vite-plugin-svelte';
+
+/** @type {import('@sveltejs/kit').Config} */
+const config = {
+	preprocess: vitePreprocess(),
+	kit: {
+		adapter: adapter({
+			out: 'build',
+		}),
+	},
+};
+
+export default config;
diff --git a/apps/matrix/apps/web/tsconfig.json b/apps/matrix/apps/web/tsconfig.json
new file mode 100644
index 000000000..942bcc11c
--- /dev/null
+++ b/apps/matrix/apps/web/tsconfig.json
@@ -0,0 +1,19 @@
+{
+	"extends": "./.svelte-kit/tsconfig.json",
+	"compilerOptions": {
+		"lib": ["ES2022", "DOM", "DOM.Iterable"],
+		"module": "ES2022",
+		"target": "ES2022",
+		"moduleResolution": "bundler",
+		"strict": true,
+		"skipLibCheck": true,
+		"esModuleInterop": true,
+		"resolveJsonModule": true,
+		"declaration": true,
+		"declarationMap": true,
+		"sourceMap": true,
+		"allowSyntheticDefaultImports": true,
+		"types": ["node"]
+	},
+	"include": ["src/**/*", "src/**/*.svelte"]
+}
diff --git a/apps/matrix/apps/web/vite.config.ts b/apps/matrix/apps/web/vite.config.ts
new file mode 100644
index 000000000..857f7aa9a
--- /dev/null
+++ b/apps/matrix/apps/web/vite.config.ts
@@ -0,0 +1,25 @@
+import { sveltekit } from '@sveltejs/kit/vite';
+import tailwindcss from '@tailwindcss/vite';
+import { defineConfig } from 'vite';
+
+export default defineConfig({
+	plugins: [tailwindcss(), sveltekit()],
+	server: {
+		port: 5180,
+		strictPort: true,
+	},
+	define: {
+		global: 'globalThis',
+	},
+	optimizeDeps: {
+		include: ['buffer', 'events'],
+		esbuildOptions: {
+			define: {
+				global: 'globalThis',
+			},
+		},
+	},
+	ssr: {
+		noExternal: ['@manacore/shared-*', '@matrix/shared'],
+	},
+});
diff --git a/apps/matrix/package.json b/apps/matrix/package.json
new file mode 100644
index 000000000..c29fd260a
--- /dev/null
+++ b/apps/matrix/package.json
@@ -0,0 +1,8 @@
+{
+	"name": "matrix",
+	"version": "0.1.0",
+	"private": true,
+	"scripts": {
+		"dev": "turbo run dev"
+	}
+}
diff --git a/apps/matrix/packages/shared/package.json b/apps/matrix/packages/shared/package.json
new file mode 100644
index 000000000..db66a3b90
--- /dev/null
+++ b/apps/matrix/packages/shared/package.json
@@ -0,0 +1,18 @@
+{
+	"name": "@matrix/shared",
+	"version": "0.1.0",
+	"private": true,
+	"type": "module",
+	"main": "./src/index.ts",
+	"types": "./src/index.ts",
+	"exports": {
+		".": "./src/index.ts",
+		"./types": "./src/types.ts"
+	},
+	"scripts": {
+		"type-check": "tsc --noEmit"
+	},
+	"devDependencies": {
+		"typescript": "^5.8.3"
+	}
+}
diff --git a/apps/matrix/packages/shared/src/index.ts b/apps/matrix/packages/shared/src/index.ts
new file mode 100644
index 000000000..a5980435f
--- /dev/null
+++ b/apps/matrix/packages/shared/src/index.ts
@@ -0,0 +1,2 @@
+// Re-export all types
+export * from './types';
diff --git a/apps/matrix/packages/shared/src/types.ts b/apps/matrix/packages/shared/src/types.ts
new file mode 100644
index 000000000..66f9e5942
--- /dev/null
+++ b/apps/matrix/packages/shared/src/types.ts
@@ -0,0 +1,42 @@
+/**
+ * Shared types for Matrix client
+ */
+
+export type SyncState = 'STOPPED' | 'PREPARED' | 'SYNCING' | 'ERROR' | 'RECONNECTING' | 'CATCHUP';
+
+export interface MatrixCredentials {
+	homeserver: string;
+	accessToken: string;
+	userId: string;
+	deviceId: string;
+}
+
+export type MessageType = 'm.text' | 'm.image' | 'm.file' | 'm.audio' | 'm.video' | 'm.emote' | 'm.notice';
+
+export interface SimpleMessage {
+	id: string;
+	sender: string;
+	senderName: string;
+	body: string;
+	formattedBody?: string;
+	timestamp: number;
+	type: MessageType;
+	isOwn: boolean;
+	replyTo?: string;
+	edited?: boolean;
+}
+
+export interface SimpleRoom {
+	id: string;
+	name: string;
+	topic?: string;
+	avatar?: string;
+	lastMessage?: string;
+	lastMessageSender?: string;
+	lastMessageTime?: number;
+	unreadCount: number;
+	highlightCount: number;
+	isDirect: boolean;
+	isEncrypted: boolean;
+	memberCount: number;
+}
diff --git a/apps/matrix/packages/shared/tsconfig.json b/apps/matrix/packages/shared/tsconfig.json
new file mode 100644
index 000000000..882ac919d
--- /dev/null
+++ b/apps/matrix/packages/shared/tsconfig.json
@@ -0,0 +1,16 @@
+{
+	"compilerOptions": {
+		"lib": ["ES2022"],
+		"module": "ES2022",
+		"target": "ES2022",
+		"moduleResolution": "bundler",
+		"strict": true,
+		"skipLibCheck": true,
+		"esModuleInterop": true,
+		"resolveJsonModule": true,
+		"declaration": true,
+		"declarationMap": true,
+		"sourceMap": true
+	},
+	"include": ["src/**/*"]
+}
diff --git a/package.json b/package.json
index 9785afb43..d5f2e4368 100644
--- a/package.json
+++ b/package.json
@@ -106,6 +106,8 @@
 		"todo:db:studio": "pnpm --filter @todo/backend db:studio",
 		"todo:db:seed": "pnpm --filter @todo/backend db:seed",
 		"dev:tags-test": "./scripts/setup-databases.sh todo && ./scripts/setup-databases.sh calendar && ./scripts/setup-databases.sh contacts && ./scripts/setup-databases.sh auth && concurrently -n auth,todo-be,todo-web,cal-be,cal-web,con-be,con-web -c blue,green,cyan,yellow,magenta,red,white \"pnpm dev:auth\" \"pnpm dev:todo:backend\" \"pnpm dev:todo:web\" \"pnpm dev:calendar:backend\" \"pnpm dev:calendar:web\" \"pnpm dev:contacts:backend\" \"pnpm dev:contacts:web\"",
+		"matrix:dev": "turbo run dev --filter=matrix...",
+		"dev:matrix:web": "pnpm --filter @matrix/web dev",
 		"moodlit:dev": "turbo run dev --filter=moodlit...",
 		"dev:moodlit:mobile": "pnpm --filter @moodlit/mobile dev",
 		"dev:moodlit:web": "pnpm --filter @moodlit/web dev",