diff --git a/lang/en.json b/lang/en.json
index 8de6a815..d85f1036 100644
--- a/lang/en.json
+++ b/lang/en.json
@@ -32,6 +32,7 @@
     "no_company_description": "You are not a member of any company yet. Accept an invitation below or contact your administrator.",
     "app_version": "Application Version",
     "database": "Database",
+    "collapse": "Collapse",
     "update": "Update",
     "deselect": "Deselect",
     "download": "Download",
diff --git a/resources/scripts/admin/layouts/LayoutBasic.vue b/resources/scripts/admin/layouts/LayoutBasic.vue
index de505a9c..a92dbae1 100644
--- a/resources/scripts/admin/layouts/LayoutBasic.vue
+++ b/resources/scripts/admin/layouts/LayoutBasic.vue
@@ -12,8 +12,8 @@
 
     <main
       :class="[
-        'h-screen h-screen-ios overflow-y-auto min-h-0',
-        hasCompany ? 'md:pl-56 xl:pl-64' : '',
+        'h-screen h-screen-ios overflow-y-auto min-h-0 transition-all duration-300',
+        hasCompany ? (globalStore.isSidebarCollapsed ? 'md:pl-16' : 'md:pl-56 xl:pl-64') : '',
       ]"
     >
       <div class="pt-16 pb-16">
diff --git a/resources/scripts/admin/layouts/partials/TheSiteSidebar.vue b/resources/scripts/admin/layouts/partials/TheSiteSidebar.vue
index b334e494..1da70a7d 100644
--- a/resources/scripts/admin/layouts/partials/TheSiteSidebar.vue
+++ b/resources/scripts/admin/layouts/partials/TheSiteSidebar.vue
@@ -118,39 +118,48 @@
 
   <!-- DESKTOP MENU -->
   <div
+    :class="[
+      globalStore.isSidebarCollapsed ? 'w-16' : 'w-56 xl:w-64',
+    ]"
     class="
       hidden
-      w-56
       h-screen
-      pb-32
-      overflow-y-auto
+      pb-16
+      overflow-y-auto overflow-x-hidden
       bg-surface/80 backdrop-blur-xl
       border-r border-white/10
-      xl:w-64
       md:fixed md:flex md:flex-col md:inset-y-0
       pt-16
+      transition-all duration-300
     "
   >
     <div
       v-for="(menu, index) in globalStore.menuGroups"
       :key="index"
-      class="p-0 m-0 mt-6 list-none"
+      class="p-0 m-0 mt-4 list-none"
     >
       <div
-        v-if="menu[0] && menu[0].group_label"
-        class="px-6 mt-6 mb-2 text-xs font-semibold text-subtle uppercase tracking-wider"
+        v-if="menu[0] && menu[0].group_label && !globalStore.isSidebarCollapsed"
+        class="px-6 mt-6 mb-2 text-xs font-semibold text-subtle uppercase tracking-wider whitespace-nowrap"
       >
         {{ $t(menu[0].group_label) }}
       </div>
+      <div
+        v-else-if="menu[0] && menu[0].group_label && globalStore.isSidebarCollapsed"
+        class="mx-3 my-2 border-t border-line-light"
+      />
       <router-link
         v-for="item in menu"
         :key="item"
         :to="item.link"
+        v-tooltip="globalStore.isSidebarCollapsed ? { content: $t(item.title), placement: 'right' } : null"
         :class="[
           hasActiveUrl(item.link)
             ? 'text-primary-600 bg-primary-50 font-semibold'
             : 'text-body hover:bg-hover',
-          'cursor-pointer mx-3 px-3 py-2.5 group flex items-center rounded-lg text-sm not-italic font-medium transition-colors',
+          globalStore.isSidebarCollapsed
+            ? 'cursor-pointer mx-2 px-0 py-2.5 group flex items-center justify-center rounded-lg text-sm font-medium transition-colors'
+            : 'cursor-pointer mx-3 px-3 py-2.5 group flex items-center rounded-lg text-sm not-italic font-medium transition-colors',
         ]"
       >
         <BaseIcon
@@ -159,13 +168,34 @@
             hasActiveUrl(item.link)
               ? 'text-primary-500'
               : 'text-subtle group-hover:text-body',
-            'mr-3 shrink-0 h-5 w-5',
+            globalStore.isSidebarCollapsed
+              ? 'shrink-0 h-6 w-6'
+              : 'mr-3 shrink-0 h-5 w-5',
           ]"
         />
 
-        {{ $t(item.title) }}
+        <span v-if="!globalStore.isSidebarCollapsed" class="whitespace-nowrap">
+          {{ $t(item.title) }}
+        </span>
       </router-link>
     </div>
+
+    <!-- Collapse Toggle -->
+    <div class="sticky bottom-0 mt-auto pt-2 pb-2 bg-surface/80 backdrop-blur-xl">
+      <button
+        class="mx-3 px-3 py-2 w-[calc(100%-1.5rem)] flex items-center rounded-lg text-subtle hover:text-body hover:bg-hover transition-colors"
+        :class="globalStore.isSidebarCollapsed ? '!justify-center !mx-2 !px-0' : ''"
+        @click="globalStore.toggleSidebarCollapse()"
+      >
+        <BaseIcon
+          :name="globalStore.isSidebarCollapsed ? 'ChevronRightIcon' : 'ChevronLeftIcon'"
+          class="shrink-0 h-5 w-5"
+        />
+        <span v-if="!globalStore.isSidebarCollapsed" class="ml-3 text-sm font-medium whitespace-nowrap">
+          {{ $t('general.collapse') }}
+        </span>
+      </button>
+    </div>
   </div>
 </template>
 
diff --git a/resources/scripts/admin/stores/global.js b/resources/scripts/admin/stores/global.js
index 779c7dd0..76a490e0 100644
--- a/resources/scripts/admin/stores/global.js
+++ b/resources/scripts/admin/stores/global.js
@@ -33,6 +33,7 @@ export const useGlobalStore = (useWindow = false) => {
       // Boolean Flags
       isAppLoaded: false,
       isSidebarOpen: false,
+      isSidebarCollapsed: window.Ls?.get('sidebarCollapsed') === 'true',
       areCurrenciesLoading: false,
 
       downloadReport: null,
@@ -270,6 +271,11 @@ export const useGlobalStore = (useWindow = false) => {
         this.isSidebarOpen = val
       },
 
+      toggleSidebarCollapse() {
+        this.isSidebarCollapsed = !this.isSidebarCollapsed
+        window.Ls.set('sidebarCollapsed', this.isSidebarCollapsed ? 'true' : 'false')
+      },
+
       setIsAppLoaded(isAppLoaded) {
         this.isAppLoaded = isAppLoaded
       },