diff --git a/src/providers/Web3Provider.tsx b/src/providers/Web3Provider.tsx
new file mode 100644
index 0000000..9580843
--- /dev/null
+++ b/src/providers/Web3Provider.tsx
@@ -0,0 +1,92 @@
+/**
+ * Web3Provider - Wagmi + WalletConnect configuration
+ *
+ * Provides wallet connection capabilities to the application.
+ * Wraps wagmi's WagmiProvider with React Query for data fetching.
+ */
+
+import React, { ReactNode } from 'react';
+import { WagmiProvider, createConfig, http } from 'wagmi';
+import { mainnet, optimism, arbitrum, base, polygon } from 'wagmi/chains';
+import { QueryClient, QueryClientProvider } from '@tanstack/react-query';
+import { injected, walletConnect } from 'wagmi/connectors';
+
+// =============================================================================
+// Configuration
+// =============================================================================
+
+// WalletConnect Project ID - get one at https://cloud.walletconnect.com/
+// For development, we'll use a placeholder that will show a warning
+const WALLETCONNECT_PROJECT_ID = import.meta.env.VITE_WALLETCONNECT_PROJECT_ID || 'YOUR_PROJECT_ID';
+
+// Supported chains
+const chains = [mainnet, optimism, arbitrum, base, polygon] as const;
+
+// Create wagmi config
+const config = createConfig({
+  chains,
+  connectors: [
+    // Injected wallets (MetaMask, Coinbase Wallet, etc.)
+    injected({
+      shimDisconnect: true,
+    }),
+    // WalletConnect v2 (for mobile wallets)
+    walletConnect({
+      projectId: WALLETCONNECT_PROJECT_ID,
+      showQrModal: true,
+      metadata: {
+        name: 'Canvas',
+        description: 'Collaborative Canvas with Web3 Integration',
+        url: typeof window !== 'undefined' ? window.location.origin : 'https://jeffemmett.com',
+        icons: ['https://jeffemmett.com/favicon.ico'],
+      },
+    }),
+  ],
+  transports: {
+    [mainnet.id]: http(),
+    [optimism.id]: http(),
+    [arbitrum.id]: http(),
+    [base.id]: http(),
+    [polygon.id]: http(),
+  },
+});
+
+// Create React Query client
+const queryClient = new QueryClient({
+  defaultOptions: {
+    queries: {
+      // Don't refetch on window focus for wallet data
+      refetchOnWindowFocus: false,
+      // Cache wallet data for 30 seconds
+      staleTime: 30_000,
+    },
+  },
+});
+
+// =============================================================================
+// Provider Component
+// =============================================================================
+
+interface Web3ProviderProps {
+  children: ReactNode;
+}
+
+export function Web3Provider({ children }: Web3ProviderProps) {
+  return (
+    <WagmiProvider config={config}>
+      <QueryClientProvider client={queryClient}>
+        {children}
+      </QueryClientProvider>
+    </WagmiProvider>
+  );
+}
+
+// =============================================================================
+// Exports
+// =============================================================================
+
+// Export config for use in hooks
+export { config };
+
+// Re-export chains for convenience
+export { mainnet, optimism, arbitrum, base, polygon };