diff --git a/src/components/UserMenu.tsx b/src/components/UserMenu.tsx
index 3a31e75..e891244 100644
--- a/src/components/UserMenu.tsx
+++ b/src/components/UserMenu.tsx
@@ -1,6 +1,6 @@
 'use client';
 
-import { useState, useEffect } from 'react';
+import { useState, useEffect, useRef } from 'react';
 
 interface UserInfo {
   username?: string;
@@ -10,6 +10,8 @@ interface UserInfo {
 export function UserMenu() {
   const [user, setUser] = useState<UserInfo | null>(null);
   const [loading, setLoading] = useState(true);
+  const [open, setOpen] = useState(false);
+  const ref = useRef<HTMLDivElement>(null);
 
   useEffect(() => {
     fetch('/api/me')
@@ -23,6 +25,16 @@ export function UserMenu() {
       .finally(() => setLoading(false));
   }, []);
 
+  useEffect(() => {
+    function handleClick(e: MouseEvent) {
+      if (ref.current && !ref.current.contains(e.target as Node)) {
+        setOpen(false);
+      }
+    }
+    document.addEventListener('click', handleClick);
+    return () => document.removeEventListener('click', handleClick);
+  }, []);
+
   if (loading) {
     return (
       <div className="w-6 h-6 rounded-full bg-slate-700 animate-pulse" />
@@ -43,23 +55,39 @@ export function UserMenu() {
   const displayName = user.username || (user.did ? `${user.did.slice(0, 12)}...` : 'User');
 
   return (
-    <div className="flex items-center gap-3">
-      <div className="flex items-center gap-2">
-        <div className="w-7 h-7 rounded-full bg-gradient-to-br from-cyan-400 to-violet-500 flex items-center justify-center text-xs font-bold text-white">
+    <div className="relative" ref={ref}>
+      <button
+        onClick={(e) => { e.stopPropagation(); setOpen(!open); }}
+        className="flex items-center gap-2 px-2 py-1.5 rounded-lg hover:bg-white/[0.06] transition-colors"
+      >
+        <div className="w-7 h-7 rounded-full bg-gradient-to-br from-cyan-400 to-violet-500 flex items-center justify-center text-xs font-bold text-white flex-shrink-0">
           {(user.username || 'U')[0].toUpperCase()}
         </div>
         <span className="text-sm text-slate-300 hidden sm:inline">{displayName}</span>
-      </div>
-      <button
-        onClick={() => {
-          fetch('/api/auth/logout', { method: 'POST' })
-            .catch(() => {})
-            .finally(() => window.location.reload());
-        }}
-        className="px-2 py-1 text-xs text-slate-500 hover:text-slate-300 border border-slate-700 hover:border-slate-600 rounded transition-colors"
-      >
-        Sign Out
+        <span className="text-[0.7em] text-slate-500 hidden sm:inline">&#9662;</span>
       </button>
+
+      {open && (
+        <div className="absolute top-full right-0 mt-1.5 min-w-[180px] rounded-xl bg-slate-800 border border-white/10 shadow-xl shadow-black/30 z-[200]">
+          <div className="px-3.5 py-2.5 border-b border-white/[0.08]">
+            <div className="text-sm font-medium text-white">{displayName}</div>
+            {user.did && (
+              <div className="text-[11px] text-slate-500 truncate mt-0.5">{user.did}</div>
+            )}
+          </div>
+          <button
+            onClick={() => {
+              setOpen(false);
+              fetch('/api/auth/logout', { method: 'POST' })
+                .catch(() => {})
+                .finally(() => window.location.reload());
+            }}
+            className="w-full text-left px-3.5 py-2.5 text-sm text-slate-400 hover:text-white hover:bg-white/[0.05] transition-colors"
+          >
+            Sign Out
+          </button>
+        </div>
+      )}
     </div>
   );
 }