diff --git a/drizzle/0011_light_zeigeist.sql b/drizzle/0011_light_zeigeist.sql
new file mode 100644
index 0000000..2b30e6c
--- /dev/null
+++ b/drizzle/0011_light_zeigeist.sql
@@ -0,0 +1,8 @@
+CREATE TABLE `prompts` (
+	`id` integer PRIMARY KEY AUTOINCREMENT NOT NULL,
+	`title` text NOT NULL,
+	`description` text,
+	`content` text NOT NULL,
+	`created_at` integer DEFAULT (unixepoch()) NOT NULL,
+	`updated_at` integer DEFAULT (unixepoch()) NOT NULL
+);
diff --git a/drizzle/meta/0011_snapshot.json b/drizzle/meta/0011_snapshot.json
new file mode 100644
index 0000000..162b858
--- /dev/null
+++ b/drizzle/meta/0011_snapshot.json
@@ -0,0 +1,578 @@
+{
+  "version": "6",
+  "dialect": "sqlite",
+  "id": "6ac2fe61-675b-4e3f-baf7-0f7d5f76bb2c",
+  "prevId": "a7f4a6e1-2a38-4dc8-a37e-b473b6304bab",
+  "tables": {
+    "apps": {
+      "name": "apps",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "integer",
+          "primaryKey": true,
+          "notNull": true,
+          "autoincrement": true
+        },
+        "name": {
+          "name": "name",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "path": {
+          "name": "path",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        },
+        "github_org": {
+          "name": "github_org",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "github_repo": {
+          "name": "github_repo",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "github_branch": {
+          "name": "github_branch",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "supabase_project_id": {
+          "name": "supabase_project_id",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "neon_project_id": {
+          "name": "neon_project_id",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "neon_development_branch_id": {
+          "name": "neon_development_branch_id",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "neon_preview_branch_id": {
+          "name": "neon_preview_branch_id",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "vercel_project_id": {
+          "name": "vercel_project_id",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "vercel_project_name": {
+          "name": "vercel_project_name",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "vercel_team_id": {
+          "name": "vercel_team_id",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "vercel_deployment_url": {
+          "name": "vercel_deployment_url",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "install_command": {
+          "name": "install_command",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "start_command": {
+          "name": "start_command",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "chat_context": {
+          "name": "chat_context",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {},
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "checkConstraints": {}
+    },
+    "chats": {
+      "name": "chats",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "integer",
+          "primaryKey": true,
+          "notNull": true,
+          "autoincrement": true
+        },
+        "app_id": {
+          "name": "app_id",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "title": {
+          "name": "title",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "initial_commit_hash": {
+          "name": "initial_commit_hash",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "chats_app_id_apps_id_fk": {
+          "name": "chats_app_id_apps_id_fk",
+          "tableFrom": "chats",
+          "tableTo": "apps",
+          "columnsFrom": [
+            "app_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "cascade",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "checkConstraints": {}
+    },
+    "language_model_providers": {
+      "name": "language_model_providers",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "text",
+          "primaryKey": true,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "name": {
+          "name": "name",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "api_base_url": {
+          "name": "api_base_url",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "env_var_name": {
+          "name": "env_var_name",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {},
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "checkConstraints": {}
+    },
+    "language_models": {
+      "name": "language_models",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "integer",
+          "primaryKey": true,
+          "notNull": true,
+          "autoincrement": true
+        },
+        "display_name": {
+          "name": "display_name",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "api_name": {
+          "name": "api_name",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "builtin_provider_id": {
+          "name": "builtin_provider_id",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "custom_provider_id": {
+          "name": "custom_provider_id",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "description": {
+          "name": "description",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "max_output_tokens": {
+          "name": "max_output_tokens",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "context_window": {
+          "name": "context_window",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "language_models_custom_provider_id_language_model_providers_id_fk": {
+          "name": "language_models_custom_provider_id_language_model_providers_id_fk",
+          "tableFrom": "language_models",
+          "tableTo": "language_model_providers",
+          "columnsFrom": [
+            "custom_provider_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "cascade",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "checkConstraints": {}
+    },
+    "messages": {
+      "name": "messages",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "integer",
+          "primaryKey": true,
+          "notNull": true,
+          "autoincrement": true
+        },
+        "chat_id": {
+          "name": "chat_id",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "role": {
+          "name": "role",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "content": {
+          "name": "content",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "approval_state": {
+          "name": "approval_state",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "commit_hash": {
+          "name": "commit_hash",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "messages_chat_id_chats_id_fk": {
+          "name": "messages_chat_id_chats_id_fk",
+          "tableFrom": "messages",
+          "tableTo": "chats",
+          "columnsFrom": [
+            "chat_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "cascade",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "checkConstraints": {}
+    },
+    "prompts": {
+      "name": "prompts",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "integer",
+          "primaryKey": true,
+          "notNull": true,
+          "autoincrement": true
+        },
+        "title": {
+          "name": "title",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "description": {
+          "name": "description",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "content": {
+          "name": "content",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {},
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "checkConstraints": {}
+    },
+    "versions": {
+      "name": "versions",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "integer",
+          "primaryKey": true,
+          "notNull": true,
+          "autoincrement": true
+        },
+        "app_id": {
+          "name": "app_id",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "commit_hash": {
+          "name": "commit_hash",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false
+        },
+        "neon_db_timestamp": {
+          "name": "neon_db_timestamp",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false,
+          "autoincrement": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "autoincrement": false,
+          "default": "(unixepoch())"
+        }
+      },
+      "indexes": {
+        "versions_app_commit_unique": {
+          "name": "versions_app_commit_unique",
+          "columns": [
+            "app_id",
+            "commit_hash"
+          ],
+          "isUnique": true
+        }
+      },
+      "foreignKeys": {
+        "versions_app_id_apps_id_fk": {
+          "name": "versions_app_id_apps_id_fk",
+          "tableFrom": "versions",
+          "tableTo": "apps",
+          "columnsFrom": [
+            "app_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "cascade",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "checkConstraints": {}
+    }
+  },
+  "views": {},
+  "enums": {},
+  "_meta": {
+    "schemas": {},
+    "tables": {},
+    "columns": {}
+  },
+  "internal": {
+    "indexes": {}
+  }
+}
\ No newline at end of file
diff --git a/drizzle/meta/_journal.json b/drizzle/meta/_journal.json
index 1d65b1f..6662c49 100644
--- a/drizzle/meta/_journal.json
+++ b/drizzle/meta/_journal.json
@@ -78,6 +78,13 @@
       "when": 1755110011615,
       "tag": "0010_nappy_fat_cobra",
       "breakpoints": true
+    },
+    {
+      "idx": 11,
+      "version": "6",
+      "when": 1755545060076,
+      "tag": "0011_light_zeigeist",
+      "breakpoints": true
     }
   ]
 }
\ No newline at end of file
diff --git a/e2e-tests/helpers/test_helper.ts b/e2e-tests/helpers/test_helper.ts
index 26b61bf..4c8b1b8 100644
--- a/e2e-tests/helpers/test_helper.ts
+++ b/e2e-tests/helpers/test_helper.ts
@@ -727,6 +727,30 @@ export class PageObject {
     await this.page.getByRole("link", { name: "Settings" }).click();
   }
 
+  async goToLibraryTab() {
+    await this.page.getByRole("link", { name: "Library" }).click();
+  }
+
+  async createPrompt({
+    title,
+    description,
+    content,
+  }: {
+    title: string;
+    description?: string;
+    content: string;
+  }) {
+    await this.page.getByRole("button", { name: "New Prompt" }).click();
+    await this.page.getByRole("textbox", { name: "Title" }).fill(title);
+    if (description) {
+      await this.page
+        .getByRole("textbox", { name: "Description (optional)" })
+        .fill(description);
+    }
+    await this.page.getByRole("textbox", { name: "Content" }).fill(content);
+    await this.page.getByRole("button", { name: "Save" }).click();
+  }
+
   getTitleBarAppNameButton() {
     return this.page.getByTestId("title-bar-app-name-button");
   }
diff --git a/e2e-tests/prompt_library.spec.ts b/e2e-tests/prompt_library.spec.ts
new file mode 100644
index 0000000..5aec6e5
--- /dev/null
+++ b/e2e-tests/prompt_library.spec.ts
@@ -0,0 +1,56 @@
+import { test } from "./helpers/test_helper";
+import { expect } from "@playwright/test";
+
+test("create and edit prompt", async ({ po }) => {
+  await po.setUp();
+  await po.goToLibraryTab();
+  await po.createPrompt({
+    title: "title1",
+    description: "desc",
+    content: "prompt1content",
+  });
+
+  await expect(po.page.getByTestId("prompt-card")).toMatchAriaSnapshot();
+
+  await po.page.getByTestId("edit-prompt-button").click();
+  await po.page
+    .getByRole("textbox", { name: "Content" })
+    .fill("prompt1content-edited");
+  await po.page.getByRole("button", { name: "Save" }).click();
+
+  await expect(po.page.getByTestId("prompt-card")).toMatchAriaSnapshot();
+});
+
+test("delete prompt", async ({ po }) => {
+  await po.setUp();
+  await po.goToLibraryTab();
+  await po.createPrompt({
+    title: "title1",
+    description: "desc",
+    content: "prompt1content",
+  });
+
+  await po.page.getByTestId("delete-prompt-button").click();
+  await po.page.getByRole("button", { name: "Delete" }).click();
+
+  await expect(po.page.getByTestId("prompt-card")).not.toBeVisible();
+});
+
+test("use prompt", async ({ po }) => {
+  await po.setUp();
+  await po.goToLibraryTab();
+  await po.createPrompt({
+    title: "title1",
+    description: "desc",
+    content: "prompt1content",
+  });
+
+  await po.goToAppsTab();
+  await po.getChatInput().click();
+  await po.getChatInput().fill("[dump] @");
+  await po.page.getByRole("menuitem", { name: "Choose title1" }).click();
+  await po.page.getByRole("button", { name: "Send message" }).click();
+  await po.waitForChatCompletion();
+
+  await po.snapshotServerDump("last-message");
+});
diff --git a/e2e-tests/snapshots/prompt_library.spec.ts_create-and-edit-prompt-1.aria.yml b/e2e-tests/snapshots/prompt_library.spec.ts_create-and-edit-prompt-1.aria.yml
new file mode 100644
index 0000000..ed9c34d
--- /dev/null
+++ b/e2e-tests/snapshots/prompt_library.spec.ts_create-and-edit-prompt-1.aria.yml
@@ -0,0 +1,7 @@
+- heading "title1" [level=3]
+- paragraph: desc
+- button:
+  - img
+- button:
+  - img
+- text: prompt1content
\ No newline at end of file
diff --git a/e2e-tests/snapshots/prompt_library.spec.ts_create-and-edit-prompt-2.aria.yml b/e2e-tests/snapshots/prompt_library.spec.ts_create-and-edit-prompt-2.aria.yml
new file mode 100644
index 0000000..a01a5c5
--- /dev/null
+++ b/e2e-tests/snapshots/prompt_library.spec.ts_create-and-edit-prompt-2.aria.yml
@@ -0,0 +1,7 @@
+- heading "title1" [level=3]
+- paragraph: desc
+- button:
+  - img
+- button:
+  - img
+- text: prompt1content-edited
\ No newline at end of file
diff --git a/e2e-tests/snapshots/prompt_library.spec.ts_use-prompt-1.txt b/e2e-tests/snapshots/prompt_library.spec.ts_use-prompt-1.txt
new file mode 100644
index 0000000..6f6c29b
--- /dev/null
+++ b/e2e-tests/snapshots/prompt_library.spec.ts_use-prompt-1.txt
@@ -0,0 +1,3 @@
+===
+role: user
+message: [dump] prompt1content
\ No newline at end of file
diff --git a/src/__tests__/replacePromptReference.test.ts b/src/__tests__/replacePromptReference.test.ts
new file mode 100644
index 0000000..87fd149
--- /dev/null
+++ b/src/__tests__/replacePromptReference.test.ts
@@ -0,0 +1,41 @@
+import { describe, expect, it } from "vitest";
+import { replacePromptReference } from "@/ipc/utils/replacePromptReference";
+
+describe("replacePromptReference", () => {
+  it("returns original when no references present", () => {
+    const input = "Hello world";
+    const output = replacePromptReference(input, {});
+    expect(output).toBe(input);
+  });
+
+  it("replaces a single @prompt:id with content", () => {
+    const input = "Use this: @prompt:42";
+    const prompts = { 42: "Meaning of life" };
+    const output = replacePromptReference(input, prompts);
+    expect(output).toBe("Use this: Meaning of life");
+  });
+
+  it("replaces multiple occurrences and keeps surrounding text", () => {
+    const input = "A @prompt:1 and B @prompt:2 end";
+    const prompts = { 1: "One", 2: "Two" };
+    const output = replacePromptReference(input, prompts);
+    expect(output).toBe("A One and B Two end");
+  });
+
+  it("leaves unknown references intact", () => {
+    const input = "Unknown @prompt:99 here";
+    const prompts = { 1: "One" };
+    const output = replacePromptReference(input, prompts);
+    expect(output).toBe("Unknown @prompt:99 here");
+  });
+
+  it("supports string keys in map as well as numeric", () => {
+    const input = "Mix @prompt:7 and @prompt:8";
+    const prompts = { "7": "Seven", 8: "Eight" } as Record<
+      string | number,
+      string
+    >;
+    const output = replacePromptReference(input, prompts);
+    expect(output).toBe("Mix Seven and Eight");
+  });
+});
diff --git a/src/components/CreatePromptDialog.tsx b/src/components/CreatePromptDialog.tsx
new file mode 100644
index 0000000..3a23f03
--- /dev/null
+++ b/src/components/CreatePromptDialog.tsx
@@ -0,0 +1,235 @@
+import React, { useState, useEffect, useRef } from "react";
+import { Button } from "@/components/ui/button";
+import { Input } from "@/components/ui/input";
+import { Textarea } from "@/components/ui/textarea";
+import {
+  Dialog,
+  DialogContent,
+  DialogDescription,
+  DialogFooter,
+  DialogHeader,
+  DialogTitle,
+  DialogTrigger,
+} from "@/components/ui/dialog";
+import {
+  Tooltip,
+  TooltipContent,
+  TooltipTrigger,
+} from "@/components/ui/tooltip";
+import { Plus, Save, Edit2 } from "lucide-react";
+
+interface CreateOrEditPromptDialogProps {
+  mode: "create" | "edit";
+  prompt?: {
+    id: number;
+    title: string;
+    description: string | null;
+    content: string;
+  };
+  onCreatePrompt?: (prompt: {
+    title: string;
+    description?: string;
+    content: string;
+  }) => Promise<any>;
+  onUpdatePrompt?: (prompt: {
+    id: number;
+    title: string;
+    description?: string;
+    content: string;
+  }) => Promise<any>;
+  trigger?: React.ReactNode;
+}
+
+export function CreateOrEditPromptDialog({
+  mode,
+  prompt,
+  onCreatePrompt,
+  onUpdatePrompt,
+  trigger,
+}: CreateOrEditPromptDialogProps) {
+  const [open, setOpen] = useState(false);
+  const [draft, setDraft] = useState({
+    title: "",
+    description: "",
+    content: "",
+  });
+  const textareaRef = useRef<HTMLTextAreaElement>(null);
+
+  // Auto-resize textarea function
+  const adjustTextareaHeight = () => {
+    const textarea = textareaRef.current;
+    if (textarea) {
+      // Store current height to avoid flicker
+      const currentHeight = textarea.style.height;
+      textarea.style.height = "auto";
+      const scrollHeight = textarea.scrollHeight;
+      const maxHeight = window.innerHeight * 0.6 - 100; // 60vh in pixels
+      const minHeight = 150; // 150px minimum
+      const newHeight = Math.min(Math.max(scrollHeight, minHeight), maxHeight);
+
+      // Only update if height actually changed to reduce reflows
+      if (`${newHeight}px` !== currentHeight) {
+        textarea.style.height = `${newHeight}px`;
+      }
+    }
+  };
+
+  // Initialize draft with prompt data when editing
+  useEffect(() => {
+    if (mode === "edit" && prompt) {
+      setDraft({
+        title: prompt.title,
+        description: prompt.description || "",
+        content: prompt.content,
+      });
+    } else {
+      setDraft({ title: "", description: "", content: "" });
+    }
+  }, [mode, prompt, open]);
+
+  // Auto-resize textarea when content changes
+  useEffect(() => {
+    adjustTextareaHeight();
+  }, [draft.content]);
+
+  // Trigger resize when dialog opens
+  useEffect(() => {
+    if (open) {
+      // Small delay to ensure the dialog is fully rendered
+      setTimeout(adjustTextareaHeight, 0);
+    }
+  }, [open]);
+
+  const resetDraft = () => {
+    if (mode === "edit" && prompt) {
+      setDraft({
+        title: prompt.title,
+        description: prompt.description || "",
+        content: prompt.content,
+      });
+    } else {
+      setDraft({ title: "", description: "", content: "" });
+    }
+  };
+
+  const onSave = async () => {
+    if (!draft.title.trim() || !draft.content.trim()) return;
+
+    if (mode === "create" && onCreatePrompt) {
+      await onCreatePrompt({
+        title: draft.title.trim(),
+        description: draft.description.trim() || undefined,
+        content: draft.content,
+      });
+    } else if (mode === "edit" && onUpdatePrompt && prompt) {
+      await onUpdatePrompt({
+        id: prompt.id,
+        title: draft.title.trim(),
+        description: draft.description.trim() || undefined,
+        content: draft.content,
+      });
+    }
+
+    setOpen(false);
+  };
+
+  const handleCancel = () => {
+    resetDraft();
+    setOpen(false);
+  };
+
+  return (
+    <Dialog open={open} onOpenChange={setOpen}>
+      {trigger ? (
+        <DialogTrigger asChild>{trigger}</DialogTrigger>
+      ) : mode === "create" ? (
+        <DialogTrigger asChild>
+          <Button>
+            <Plus className="mr-2 h-4 w-4" /> New Prompt
+          </Button>
+        </DialogTrigger>
+      ) : (
+        <Tooltip>
+          <TooltipTrigger asChild>
+            <DialogTrigger asChild>
+              <Button
+                size="icon"
+                variant="ghost"
+                data-testid="edit-prompt-button"
+              >
+                <Edit2 className="h-4 w-4" />
+              </Button>
+            </DialogTrigger>
+          </TooltipTrigger>
+          <TooltipContent>
+            <p>Edit prompt</p>
+          </TooltipContent>
+        </Tooltip>
+      )}
+      <DialogContent className="sm:max-w-[500px]">
+        <DialogHeader>
+          <DialogTitle>
+            {mode === "create" ? "Create New Prompt" : "Edit Prompt"}
+          </DialogTitle>
+          <DialogDescription>
+            {mode === "create"
+              ? "Create a new prompt template for your library."
+              : "Edit your prompt template."}
+          </DialogDescription>
+        </DialogHeader>
+        <div className="space-y-4">
+          <Input
+            placeholder="Title"
+            value={draft.title}
+            onChange={(e) => setDraft((d) => ({ ...d, title: e.target.value }))}
+          />
+          <Input
+            placeholder="Description (optional)"
+            value={draft.description}
+            onChange={(e) =>
+              setDraft((d) => ({ ...d, description: e.target.value }))
+            }
+          />
+          <Textarea
+            ref={textareaRef}
+            placeholder="Content"
+            value={draft.content}
+            onChange={(e) => {
+              setDraft((d) => ({ ...d, content: e.target.value }));
+              // Use requestAnimationFrame for smoother updates
+              requestAnimationFrame(adjustTextareaHeight);
+            }}
+            className="resize-none overflow-y-auto"
+            style={{ minHeight: "150px" }}
+          />
+        </div>
+        <DialogFooter>
+          <Button variant="outline" onClick={handleCancel}>
+            Cancel
+          </Button>
+          <Button
+            onClick={onSave}
+            disabled={!draft.title.trim() || !draft.content.trim()}
+          >
+            <Save className="mr-2 h-4 w-4" /> Save
+          </Button>
+        </DialogFooter>
+      </DialogContent>
+    </Dialog>
+  );
+}
+
+// Backward compatibility wrapper for create mode
+export function CreatePromptDialog({
+  onCreatePrompt,
+}: {
+  onCreatePrompt: (prompt: {
+    title: string;
+    description?: string;
+    content: string;
+  }) => Promise<any>;
+}) {
+  return (
+    <CreateOrEditPromptDialog mode="create" onCreatePrompt={onCreatePrompt} />
+  );
+}
diff --git a/src/components/DeleteConfirmationDialog.tsx b/src/components/DeleteConfirmationDialog.tsx
new file mode 100644
index 0000000..6676fd9
--- /dev/null
+++ b/src/components/DeleteConfirmationDialog.tsx
@@ -0,0 +1,71 @@
+import React from "react";
+import { Button } from "@/components/ui/button";
+import { Trash2 } from "lucide-react";
+import {
+  AlertDialog,
+  AlertDialogAction,
+  AlertDialogCancel,
+  AlertDialogContent,
+  AlertDialogDescription,
+  AlertDialogFooter,
+  AlertDialogHeader,
+  AlertDialogTitle,
+  AlertDialogTrigger,
+} from "@/components/ui/alert-dialog";
+import {
+  Tooltip,
+  TooltipContent,
+  TooltipTrigger,
+} from "@/components/ui/tooltip";
+
+interface DeleteConfirmationDialogProps {
+  itemName: string;
+  itemType?: string;
+  onDelete: () => void | Promise<void>;
+  trigger?: React.ReactNode;
+}
+
+export function DeleteConfirmationDialog({
+  itemName,
+  itemType = "item",
+  onDelete,
+  trigger,
+}: DeleteConfirmationDialogProps) {
+  return (
+    <AlertDialog>
+      {trigger ? (
+        <AlertDialogTrigger asChild>{trigger}</AlertDialogTrigger>
+      ) : (
+        <Tooltip>
+          <TooltipTrigger asChild>
+            <AlertDialogTrigger asChild>
+              <Button
+                size="icon"
+                variant="ghost"
+                data-testid="delete-prompt-button"
+              >
+                <Trash2 className="h-4 w-4" />
+              </Button>
+            </AlertDialogTrigger>
+          </TooltipTrigger>
+          <TooltipContent>
+            <p>Delete {itemType.toLowerCase()}</p>
+          </TooltipContent>
+        </Tooltip>
+      )}
+      <AlertDialogContent>
+        <AlertDialogHeader>
+          <AlertDialogTitle>Delete {itemType}</AlertDialogTitle>
+          <AlertDialogDescription>
+            Are you sure you want to delete "{itemName}"? This action cannot be
+            undone.
+          </AlertDialogDescription>
+        </AlertDialogHeader>
+        <AlertDialogFooter>
+          <AlertDialogCancel>Cancel</AlertDialogCancel>
+          <AlertDialogAction onClick={onDelete}>Delete</AlertDialogAction>
+        </AlertDialogFooter>
+      </AlertDialogContent>
+    </AlertDialog>
+  );
+}
diff --git a/src/components/app-sidebar.tsx b/src/components/app-sidebar.tsx
index 41df181..70f98e9 100644
--- a/src/components/app-sidebar.tsx
+++ b/src/components/app-sidebar.tsx
@@ -1,4 +1,11 @@
-import { Home, Inbox, Settings, HelpCircle, Store } from "lucide-react";
+import {
+  Home,
+  Inbox,
+  Settings,
+  HelpCircle,
+  Store,
+  BookOpen,
+} from "lucide-react";
 import { Link, useRouterState } from "@tanstack/react-router";
 import { useSidebar } from "@/components/ui/sidebar"; // import useSidebar hook
 import { useEffect, useState, useRef } from "react";
@@ -39,6 +46,11 @@ const items = [
     to: "/settings",
     icon: Settings,
   },
+  {
+    title: "Library",
+    to: "/library",
+    icon: BookOpen,
+  },
   {
     title: "Hub",
     to: "/hub",
@@ -51,6 +63,7 @@ type HoverState =
   | "start-hover:app"
   | "start-hover:chat"
   | "start-hover:settings"
+  | "start-hover:library"
   | "clear-hover"
   | "no-hover";
 
@@ -92,6 +105,8 @@ export function AppSidebar() {
     selectedItem = "Chat";
   } else if (hoverState === "start-hover:settings") {
     selectedItem = "Settings";
+  } else if (hoverState === "start-hover:library") {
+    selectedItem = "Library";
   } else if (state === "expanded") {
     if (isAppRoute) {
       selectedItem = "Apps";
@@ -195,6 +210,8 @@ function AppIcons({
                         onHoverChange("start-hover:chat");
                       } else if (item.title === "Settings") {
                         onHoverChange("start-hover:settings");
+                      } else if (item.title === "Library") {
+                        onHoverChange("start-hover:library");
                       }
                     }}
                   >
diff --git a/src/components/chat/LexicalChatInput.tsx b/src/components/chat/LexicalChatInput.tsx
index 6d42c50..271d520 100644
--- a/src/components/chat/LexicalChatInput.tsx
+++ b/src/components/chat/LexicalChatInput.tsx
@@ -21,6 +21,7 @@ import {
 } from "lexical-beautiful-mentions";
 import { KEY_ENTER_COMMAND, COMMAND_PRIORITY_HIGH } from "lexical";
 import { useLoadApps } from "@/hooks/useLoadApps";
+import { usePrompts } from "@/hooks/usePrompts";
 import { forwardRef } from "react";
 import { useAtomValue } from "jotai";
 import { selectedAppIdAtom } from "@/atoms/appAtoms";
@@ -36,26 +37,35 @@ const beautifulMentionsTheme: BeautifulMentionsTheme = {
 const CustomMenuItem = forwardRef<
   HTMLLIElement,
   BeautifulMentionsMenuItemProps
->(({ selected, item, ...props }, ref) => (
-  <li
-    className={`m-0 flex items-center px-3 py-2 cursor-pointer whitespace-nowrap ${
-      selected
-        ? "bg-accent text-accent-foreground"
-        : "bg-popover text-popover-foreground hover:bg-accent/50"
-    }`}
-    {...props}
-    ref={ref}
-  >
-    <div className="flex items-center space-x-2 min-w-0">
-      <span className="px-2 py-0.5 text-xs font-medium bg-primary text-primary-foreground rounded-md flex-shrink-0">
-        App
-      </span>
-      <span className="truncate text-sm">
-        {typeof item === "string" ? item : item.value}
-      </span>
-    </div>
-  </li>
-));
+>(({ selected, item, ...props }, ref) => {
+  const isPrompt = typeof item !== "string" && item.data?.type === "prompt";
+  const label = isPrompt ? "Prompt" : "App";
+  const value = typeof item === "string" ? item : (item as any)?.value;
+  return (
+    <li
+      className={`m-0 flex items-center px-3 py-2 cursor-pointer whitespace-nowrap ${
+        selected
+          ? "bg-accent text-accent-foreground"
+          : "bg-popover text-popover-foreground hover:bg-accent/50"
+      }`}
+      {...props}
+      ref={ref}
+    >
+      <div className="flex items-center space-x-2 min-w-0">
+        <span
+          className={`px-2 py-0.5 text-xs font-medium rounded-md flex-shrink-0 ${
+            isPrompt
+              ? "bg-purple-500 text-white"
+              : "bg-primary text-primary-foreground"
+          }`}
+        >
+          {label}
+        </span>
+        <span className="truncate text-sm">{value}</span>
+      </div>
+    </li>
+  );
+});
 
 // Custom menu component
 function CustomMenu({ loading: _loading, ...props }: any) {
@@ -136,13 +146,24 @@ function ClearEditorPlugin({
 }
 
 // Plugin to sync external value prop into the editor
-function ExternalValueSyncPlugin({ value }: { value: string }) {
+function ExternalValueSyncPlugin({
+  value,
+  promptsById,
+}: {
+  value: string;
+  promptsById: Record<number, string>;
+}) {
   const [editor] = useLexicalComposerContext();
 
   useEffect(() => {
     // Derive the display text that should appear in the editor (@Name) from the
     // internal value representation (@app:Name)
-    const displayText = (value || "").replace(MENTION_REGEX, "@$1");
+    let displayText = (value || "").replace(MENTION_REGEX, "@$1");
+    displayText = displayText.replace(/@prompt:(\d+)/g, (_m, idStr) => {
+      const id = Number(idStr);
+      const title = promptsById[id];
+      return title ? `@${title}` : _m;
+    });
 
     const currentText = editor.getEditorState().read(() => {
       const root = $getRoot();
@@ -157,34 +178,32 @@ function ExternalValueSyncPlugin({ value }: { value: string }) {
 
       const paragraph = $createParagraphNode();
 
-      // Build nodes from the internal value, turning @app:Name into a mention node
-      const mentionRegex = /@app:([a-zA-Z0-9_-]+)/g;
+      // Build nodes from internal value, turning @app:Name and @prompt:<id> into mention nodes
       let lastIndex = 0;
       let match: RegExpExecArray | null;
-
-      while ((match = mentionRegex.exec(value)) !== null) {
-        const [full, name] = match;
+      const combined = /@app:([a-zA-Z0-9_-]+)|@prompt:(\d+)/g;
+      while ((match = combined.exec(value)) !== null) {
         const start = match.index;
-
-        // Append any text before the mention
+        const full = match[0];
         if (start > lastIndex) {
           const textBefore = value.slice(lastIndex, start);
           if (textBefore) paragraph.append($createTextNode(textBefore));
         }
-
-        // Append the actual mention node (@ trigger with value = Name)
-        paragraph.append($createBeautifulMentionNode("@", name));
-
+        if (match[1]) {
+          const appName = match[1];
+          paragraph.append($createBeautifulMentionNode("@", appName));
+        } else if (match[2]) {
+          const id = Number(match[2]);
+          const title = promptsById[id] || `prompt:${id}`;
+          paragraph.append($createBeautifulMentionNode("@", title));
+        }
         lastIndex = start + full.length;
       }
-
-      // Append any trailing text after the last mention
       if (lastIndex < value.length) {
         const trailing = value.slice(lastIndex);
         if (trailing) paragraph.append($createTextNode(trailing));
       }
 
-      // If there were no mentions at all, just append the raw value as text
       if (value && paragraph.getTextContent() === "") {
         paragraph.append($createTextNode(value));
       }
@@ -192,7 +211,7 @@ function ExternalValueSyncPlugin({ value }: { value: string }) {
       root.append(paragraph);
       paragraph.selectEnd();
     });
-  }, [editor, value]);
+  }, [editor, value, promptsById]);
 
   return null;
 }
@@ -221,6 +240,7 @@ export function LexicalChatInput({
   disabled = false,
 }: LexicalChatInputProps) {
   const { apps } = useLoadApps();
+  const { prompts } = usePrompts();
   const [shouldClear, setShouldClear] = useState(false);
   const selectedAppId = useAtomValue(selectedAppIdAtom);
 
@@ -252,10 +272,17 @@ export function LexicalChatInput({
     });
 
     const appMentions = filteredApps.map((app) => app.name);
+
+    const promptItems = (prompts || []).map((p) => ({
+      value: p.title,
+      type: "prompt",
+      id: p.id,
+    }));
+
     return {
-      "@": appMentions,
+      "@": [...appMentions, ...promptItems],
     };
-  }, [apps, selectedAppId, value, excludeCurrentApp]);
+  }, [apps, selectedAppId, value, excludeCurrentApp, prompts]);
 
   const initialConfig = {
     namespace: "ChatInput",
@@ -291,11 +318,18 @@ export function LexicalChatInput({
             );
             textContent = textContent.replace(mentionRegex, "@app:$1");
           }
+          // Convert @PromptTitle to @prompt:<id>
+          const map = new Map((prompts || []).map((p) => [p.title, p.id]));
+          for (const [title, id] of map.entries()) {
+            const escapedTitle = title.replace(/[.*+?^${}()|[\]\\]/g, "\\$&");
+            const regex = new RegExp(`@(${escapedTitle})(?![\\w-])`, "g");
+            textContent = textContent.replace(regex, `@prompt:${id}`);
+          }
         }
         onChange(textContent);
       });
     },
-    [onChange, apps],
+    [onChange, apps, prompts],
   );
 
   const handleSubmit = useCallback(() => {
@@ -343,7 +377,12 @@ export function LexicalChatInput({
         <OnChangePlugin onChange={handleEditorChange} />
         <HistoryPlugin />
         <EnterKeyPlugin onSubmit={handleSubmit} />
-        <ExternalValueSyncPlugin value={value} />
+        <ExternalValueSyncPlugin
+          value={value}
+          promptsById={Object.fromEntries(
+            (prompts || []).map((p) => [p.id, p.title]),
+          )}
+        />
         <ClearEditorPlugin
           shouldClear={shouldClear}
           onCleared={handleCleared}
diff --git a/src/components/ui/textarea.tsx b/src/components/ui/textarea.tsx
new file mode 100644
index 0000000..28cd126
--- /dev/null
+++ b/src/components/ui/textarea.tsx
@@ -0,0 +1,26 @@
+import * as React from "react";
+
+import { cn } from "@/lib/utils";
+
+export interface TextareaProps
+  extends React.TextareaHTMLAttributes<HTMLTextAreaElement> {}
+
+const Textarea = React.forwardRef<HTMLTextAreaElement, TextareaProps>(
+  ({ className, ...props }, ref) => {
+    return (
+      <textarea
+        className={cn(
+          "flex min-h-[80px] w-full rounded-md border border-input bg-background px-3 py-2 text-sm ring-offset-background",
+          "placeholder:text-muted-foreground focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-ring focus-visible:ring-offset-2",
+          "disabled:cursor-not-allowed disabled:opacity-50",
+          className,
+        )}
+        ref={ref}
+        {...props}
+      />
+    );
+  },
+);
+Textarea.displayName = "Textarea";
+
+export { Textarea };
diff --git a/src/db/schema.ts b/src/db/schema.ts
index e1586eb..f19ad17 100644
--- a/src/db/schema.ts
+++ b/src/db/schema.ts
@@ -2,6 +2,19 @@ import { sql } from "drizzle-orm";
 import { integer, sqliteTable, text, unique } from "drizzle-orm/sqlite-core";
 import { relations } from "drizzle-orm";
 
+export const prompts = sqliteTable("prompts", {
+  id: integer("id").primaryKey({ autoIncrement: true }),
+  title: text("title").notNull(),
+  description: text("description"),
+  content: text("content").notNull(),
+  createdAt: integer("created_at", { mode: "timestamp" })
+    .notNull()
+    .default(sql`(unixepoch())`),
+  updatedAt: integer("updated_at", { mode: "timestamp" })
+    .notNull()
+    .default(sql`(unixepoch())`),
+});
+
 export const apps = sqliteTable("apps", {
   id: integer("id").primaryKey({ autoIncrement: true }),
   name: text("name").notNull(),
diff --git a/src/hooks/usePrompts.ts b/src/hooks/usePrompts.ts
new file mode 100644
index 0000000..31d4943
--- /dev/null
+++ b/src/hooks/usePrompts.ts
@@ -0,0 +1,81 @@
+import { useMutation, useQuery, useQueryClient } from "@tanstack/react-query";
+import { IpcClient } from "@/ipc/ipc_client";
+
+export interface PromptItem {
+  id: number;
+  title: string;
+  description: string | null;
+  content: string;
+  createdAt: Date;
+  updatedAt: Date;
+}
+
+export function usePrompts() {
+  const queryClient = useQueryClient();
+  const listQuery = useQuery({
+    queryKey: ["prompts"],
+    queryFn: async (): Promise<PromptItem[]> => {
+      const ipc = IpcClient.getInstance();
+      return ipc.listPrompts();
+    },
+    meta: { showErrorToast: true },
+  });
+
+  const createMutation = useMutation({
+    mutationFn: async (params: {
+      title: string;
+      description?: string;
+      content: string;
+    }): Promise<PromptItem> => {
+      const ipc = IpcClient.getInstance();
+      return ipc.createPrompt(params);
+    },
+    onSuccess: () => {
+      queryClient.invalidateQueries({ queryKey: ["prompts"] });
+    },
+    meta: {
+      showErrorToast: true,
+    },
+  });
+
+  const updateMutation = useMutation({
+    mutationFn: async (params: {
+      id: number;
+      title: string;
+      description?: string;
+      content: string;
+    }): Promise<void> => {
+      const ipc = IpcClient.getInstance();
+      return ipc.updatePrompt(params);
+    },
+    onSuccess: () => {
+      queryClient.invalidateQueries({ queryKey: ["prompts"] });
+    },
+    meta: {
+      showErrorToast: true,
+    },
+  });
+
+  const deleteMutation = useMutation({
+    mutationFn: async (id: number): Promise<void> => {
+      const ipc = IpcClient.getInstance();
+      return ipc.deletePrompt(id);
+    },
+    onSuccess: () => {
+      queryClient.invalidateQueries({ queryKey: ["prompts"] });
+    },
+    meta: {
+      showErrorToast: true,
+    },
+  });
+
+  return {
+    prompts: listQuery.data ?? [],
+    isLoading: listQuery.isLoading,
+    error: listQuery.error,
+    refetch: listQuery.refetch,
+    createPrompt: createMutation.mutateAsync,
+    updatePrompt: updateMutation.mutateAsync,
+    deletePrompt: deleteMutation.mutateAsync,
+  };
+}
diff --git a/src/ipc/handlers/chat_stream_handlers.ts b/src/ipc/handlers/chat_stream_handlers.ts
index 7b3d5da..c737a6d 100644
--- a/src/ipc/handlers/chat_stream_handlers.ts
+++ b/src/ipc/handlers/chat_stream_handlers.ts
@@ -61,6 +61,9 @@ import { FileUploadsState } from "../utils/file_uploads_state";
 import { OpenAIResponsesProviderOptions } from "@ai-sdk/openai";
 import { extractMentionedAppsCodebases } from "../utils/mention_apps";
 import { parseAppMentions } from "@/shared/parse_mention_apps";
+import { prompts as promptsTable } from "../../db/schema";
+import { inArray } from "drizzle-orm";
+import { replacePromptReference } from "../utils/replacePromptReference";
 
 type AsyncIterableStream<T> = AsyncIterable<T> & ReadableStream<T>;
 
@@ -274,6 +277,26 @@ export function registerChatStreamHandlers() {
 
       // Add user message to database with attachment info
       let userPrompt = req.prompt + (attachmentInfo ? attachmentInfo : "");
+      // Inline referenced prompt contents for mentions like @prompt:<id>
+      try {
+        const matches = Array.from(userPrompt.matchAll(/@prompt:(\d+)/g));
+        if (matches.length > 0) {
+          const ids = Array.from(new Set(matches.map((m) => Number(m[1]))));
+          const referenced = await db
+            .select()
+            .from(promptsTable)
+            .where(inArray(promptsTable.id, ids));
+          if (referenced.length > 0) {
+            const promptsMap: Record<number, string> = {};
+            for (const p of referenced) {
+              promptsMap[p.id] = p.content;
+            }
+            userPrompt = replacePromptReference(userPrompt, promptsMap);
+          }
+        }
+      } catch (e) {
+        logger.error("Failed to inline referenced prompts:", e);
+      }
       if (req.selectedComponent) {
         let componentSnippet = "[component snippet not available]";
         try {
diff --git a/src/ipc/handlers/prompt_handlers.ts b/src/ipc/handlers/prompt_handlers.ts
new file mode 100644
index 0000000..8651a3e
--- /dev/null
+++ b/src/ipc/handlers/prompt_handlers.ts
@@ -0,0 +1,91 @@
+import { IpcMainInvokeEvent } from "electron";
+import log from "electron-log";
+import { createLoggedHandler } from "./safe_handle";
+import { db } from "@/db";
+import { prompts } from "@/db/schema";
+import { eq } from "drizzle-orm";
+import {
+  CreatePromptParamsDto,
+  PromptDto,
+  UpdatePromptParamsDto,
+} from "../ipc_types";
+
+const logger = log.scope("prompt_handlers");
+const handle = createLoggedHandler(logger);
+
+export function registerPromptHandlers() {
+  handle("prompts:list", async (): Promise<PromptDto[]> => {
+    const rows = db.select().from(prompts).all();
+    return rows.map((r) => ({
+      id: r.id!,
+      title: r.title,
+      description: r.description ?? null,
+      content: r.content,
+      createdAt: r.createdAt,
+      updatedAt: r.updatedAt,
+    }));
+  });
+
+  handle(
+    "prompts:create",
+    async (
+      _e: IpcMainInvokeEvent,
+      params: CreatePromptParamsDto,
+    ): Promise<PromptDto> => {
+      const { title, description, content } = params;
+      if (!title || !content) {
+        throw new Error("Title and content are required");
+      }
+      const result = db
+        .insert(prompts)
+        .values({
+          title,
+          description: description ?? null,
+          content,
+        })
+        .run();
+
+      const id = Number(result.lastInsertRowid);
+      const row = db.select().from(prompts).where(eq(prompts.id, id)).get();
+      if (!row) throw new Error("Failed to fetch created prompt");
+      return {
+        id: row.id!,
+        title: row.title,
+        description: row.description ?? null,
+        content: row.content,
+        createdAt: row.createdAt,
+        updatedAt: row.updatedAt,
+      };
+    },
+  );
+
+  handle(
+    "prompts:update",
+    async (
+      _e: IpcMainInvokeEvent,
+      params: UpdatePromptParamsDto,
+    ): Promise<void> => {
+      const { id, title, description, content } = params;
+      if (!id) throw new Error("Prompt id is required");
+      if (!title || !content) throw new Error("Title and content are required");
+      const now = new Date();
+      db.update(prompts)
+        .set({
+          title,
+          description: description ?? null,
+          content,
+          updatedAt: now,
+        })
+        .where(eq(prompts.id, id))
+        .run();
+    },
+  );
+
+  handle(
+    "prompts:delete",
+    async (_e: IpcMainInvokeEvent, id: number): Promise<void> => {
+      if (!id) throw new Error("Prompt id is required");
+      db.delete(prompts).where(eq(prompts.id, id)).run();
+    },
+  );
+}
diff --git a/src/ipc/ipc_client.ts b/src/ipc/ipc_client.ts
index a5f1c63..3177913 100644
--- a/src/ipc/ipc_client.ts
+++ b/src/ipc/ipc_client.ts
@@ -58,6 +58,9 @@ import type {
   RevertVersionResponse,
   RevertVersionParams,
   RespondToAppInputParams,
+  PromptDto,
+  CreatePromptParamsDto,
+  UpdatePromptParamsDto,
 } from "./ipc_types";
 import type { Template } from "../shared/templates";
 import type { AppChatContext, ProposalResult } from "@/lib/schemas";
@@ -1069,4 +1072,21 @@ export class IpcClient {
   public async getTemplates(): Promise<Template[]> {
     return this.ipcRenderer.invoke("get-templates");
   }
+
+  // --- Prompts Library ---
+  public async listPrompts(): Promise<PromptDto[]> {
+    return this.ipcRenderer.invoke("prompts:list");
+  }
+
+  public async createPrompt(params: CreatePromptParamsDto): Promise<PromptDto> {
+    return this.ipcRenderer.invoke("prompts:create", params);
+  }
+
+  public async updatePrompt(params: UpdatePromptParamsDto): Promise<void> {
+    await this.ipcRenderer.invoke("prompts:update", params);
+  }
+
+  public async deletePrompt(id: number): Promise<void> {
+    await this.ipcRenderer.invoke("prompts:delete", id);
+  }
 }
diff --git a/src/ipc/ipc_host.ts b/src/ipc/ipc_host.ts
index d6827f3..e4e12ae 100644
--- a/src/ipc/ipc_host.ts
+++ b/src/ipc/ipc_host.ts
@@ -28,6 +28,7 @@ import { registerProblemsHandlers } from "./handlers/problems_handlers";
 import { registerAppEnvVarsHandlers } from "./handlers/app_env_vars_handlers";
 import { registerTemplateHandlers } from "./handlers/template_handlers";
 import { registerPortalHandlers } from "./handlers/portal_handlers";
+import { registerPromptHandlers } from "./handlers/prompt_handlers";
 
 export function registerIpcHandlers() {
   // Register all IPC handlers by category
@@ -61,4 +62,5 @@ export function registerIpcHandlers() {
   registerAppEnvVarsHandlers();
   registerTemplateHandlers();
   registerPortalHandlers();
+  registerPromptHandlers();
 }
diff --git a/src/ipc/ipc_types.ts b/src/ipc/ipc_types.ts
index a2852d5..20c2d36 100644
--- a/src/ipc/ipc_types.ts
+++ b/src/ipc/ipc_types.ts
@@ -353,6 +353,26 @@ export interface UploadFileToCodebaseResult {
   filePath: string;
 }
 
+// --- Prompts ---
+export interface PromptDto {
+  id: number;
+  title: string;
+  description: string | null;
+  content: string;
+  createdAt: Date;
+  updatedAt: Date;
+}
+
+export interface CreatePromptParamsDto {
+  title: string;
+  description?: string;
+  content: string;
+}
+
+export interface UpdatePromptParamsDto extends CreatePromptParamsDto {
+  id: number;
+}
+
 export interface FileAttachment {
   file: File;
   type: "upload-to-codebase" | "chat-context";
diff --git a/src/ipc/utils/replacePromptReference.ts b/src/ipc/utils/replacePromptReference.ts
new file mode 100644
index 0000000..7e66b3e
--- /dev/null
+++ b/src/ipc/utils/replacePromptReference.ts
@@ -0,0 +1,16 @@
+export function replacePromptReference(
+  userPrompt: string,
+  promptsById: Record<number | string, string>,
+): string {
+  if (typeof userPrompt !== "string" || userPrompt.length === 0)
+    return userPrompt;
+
+  return userPrompt.replace(
+    /@prompt:(\d+)/g,
+    (_match: string, idStr: string) => {
+      const idNum = Number(idStr);
+      const replacement = promptsById[idNum] ?? promptsById[idStr];
+      return replacement !== undefined ? replacement : _match;
+    },
+  );
+}
diff --git a/src/pages/library.tsx b/src/pages/library.tsx
new file mode 100644
index 0000000..be59c99
--- /dev/null
+++ b/src/pages/library.tsx
@@ -0,0 +1,97 @@
+import React from "react";
+import { usePrompts } from "@/hooks/usePrompts";
+import {
+  CreatePromptDialog,
+  CreateOrEditPromptDialog,
+} from "@/components/CreatePromptDialog";
+import { DeleteConfirmationDialog } from "@/components/DeleteConfirmationDialog";
+
+export default function LibraryPage() {
+  const { prompts, isLoading, createPrompt, updatePrompt, deletePrompt } =
+    usePrompts();
+
+  return (
+    <div className="min-h-screen px-8 py-6">
+      <div className="max-w-6xl mx-auto">
+        <div className="flex items-center justify-between mb-6">
+          <h1 className="text-3xl font-bold mr-4">Library: Prompts</h1>
+          <CreatePromptDialog onCreatePrompt={createPrompt} />
+        </div>
+
+        {isLoading ? (
+          <div>Loading...</div>
+        ) : prompts.length === 0 ? (
+          <div className="text-muted-foreground">
+            No prompts yet. Create one to get started.
+          </div>
+        ) : (
+          <div className="grid grid-cols-1 lg:grid-cols-2 xl:grid-cols-3 gap-4">
+            {prompts.map((p) => (
+              <PromptCard
+                key={p.id}
+                prompt={p}
+                onUpdate={updatePrompt}
+                onDelete={deletePrompt}
+              />
+            ))}
+          </div>
+        )}
+      </div>
+    </div>
+  );
+}
+
+function PromptCard({
+  prompt,
+  onUpdate,
+  onDelete,
+}: {
+  prompt: {
+    id: number;
+    title: string;
+    description: string | null;
+    content: string;
+  };
+  onUpdate: (p: {
+    id: number;
+    title: string;
+    description?: string;
+    content: string;
+  }) => Promise<void>;
+  onDelete: (id: number) => Promise<void>;
+}) {
+  return (
+    <div
+      data-testid="prompt-card"
+      className="border rounded-lg p-4 bg-(--background-lightest) min-w-80"
+    >
+      <div className="space-y-2">
+        <div className="flex items-start justify-between">
+          <div>
+            <h3 className="text-lg font-semibold">{prompt.title}</h3>
+            {prompt.description && (
+              <p className="text-sm text-muted-foreground">
+                {prompt.description}
+              </p>
+            )}
+          </div>
+          <div className="flex gap-2">
+            <CreateOrEditPromptDialog
+              mode="edit"
+              prompt={prompt}
+              onUpdatePrompt={onUpdate}
+            />
+            <DeleteConfirmationDialog
+              itemName={prompt.title}
+              itemType="Prompt"
+              onDelete={() => onDelete(prompt.id)}
+            />
+          </div>
+        </div>
+        <pre className="text-sm whitespace-pre-wrap bg-transparent border rounded p-2 max-h-48 overflow-auto">
+          {prompt.content}
+        </pre>
+      </div>
+    </div>
+  );
+}
diff --git a/src/preload.ts b/src/preload.ts
index 8833f70..5882a2d 100644
--- a/src/preload.ts
+++ b/src/preload.ts
@@ -106,6 +106,11 @@ const validInvokeChannels = [
   "restart-dyad",
   "get-templates",
   "portal:migrate-create",
+  // Prompts
+  "prompts:list",
+  "prompts:create",
+  "prompts:update",
+  "prompts:delete",
   // Test-only channels
   // These should ALWAYS be guarded with IS_TEST_BUILD in the main process.
   // We can't detect with IS_TEST_BUILD in the preload script because
diff --git a/src/router.ts b/src/router.ts
index a799289..b223a9e 100644
--- a/src/router.ts
+++ b/src/router.ts
@@ -6,10 +6,12 @@ import { settingsRoute } from "./routes/settings";
 import { providerSettingsRoute } from "./routes/settings/providers/$provider";
 import { appDetailsRoute } from "./routes/app-details";
 import { hubRoute } from "./routes/hub";
+import { libraryRoute } from "./routes/library";
 
 const routeTree = rootRoute.addChildren([
   homeRoute,
   hubRoute,
+  libraryRoute,
   chatRoute,
   appDetailsRoute,
   settingsRoute.addChildren([providerSettingsRoute]),
diff --git a/src/routes/library.ts b/src/routes/library.ts
new file mode 100644
index 0000000..2687a2e
--- /dev/null
+++ b/src/routes/library.ts
@@ -0,0 +1,9 @@
+import { Route } from "@tanstack/react-router";
+import { rootRoute } from "./root";
+import LibraryPage from "@/pages/library";
+
+export const libraryRoute = new Route({
+  getParentRoute: () => rootRoute,
+  path: "/library",
+  component: LibraryPage,
+});