diff --git a/shared/components/rstack-identity.ts b/shared/components/rstack-identity.ts
index 6c272d8..a7dedb0 100644
--- a/shared/components/rstack-identity.ts
+++ b/shared/components/rstack-identity.ts
@@ -342,6 +342,15 @@ export class RStackIdentity extends HTMLElement {
 						<button class="dropdown-item" data-action="my-account">👤 My Account</button>
 						<button class="dropdown-item" data-action="my-spaces">🌐 My Spaces</button>
 						<div class="dropdown-divider"></div>
+						<div class="dropdown-theme-row">
+							<span class="theme-icon">☀️</span>
+							<label class="theme-toggle">
+								<input type="checkbox" id="dropdown-theme-toggle" ${(localStorage.getItem("canvas-theme") || "dark") === "dark" ? "checked" : ""} />
+								<span class="theme-slider"></span>
+							</label>
+							<span class="theme-icon">🌙</span>
+						</div>
+						<div class="dropdown-divider"></div>
 						<button class="dropdown-item dropdown-item--danger" data-action="signout">🚪 Sign Out</button>
 					</div>
 				</div>
@@ -374,6 +383,17 @@ export class RStackIdentity extends HTMLElement {
 					}
 				});
 			});
+
+			const dropdownTheme = this.#shadow.getElementById("dropdown-theme-toggle") as HTMLInputElement;
+			if (dropdownTheme) {
+				dropdownTheme.addEventListener("click", (e) => e.stopPropagation());
+				dropdownTheme.addEventListener("change", () => {
+					const newTheme = dropdownTheme.checked ? "dark" : "light";
+					localStorage.setItem("canvas-theme", newTheme);
+					document.documentElement.setAttribute("data-theme", newTheme);
+					this.dispatchEvent(new CustomEvent("theme-change", { bubbles: true, composed: true, detail: { theme: newTheme } }));
+				});
+			}
 		} else {
 			this.#shadow.innerHTML = `
 				<style>${STYLES}</style>
@@ -676,17 +696,7 @@ export class RStackIdentity extends HTMLElement {
 						}</div>
 					</div>
 
-					<div class="account-section account-section--inline">
-						<div class="account-section-header">
-							<span>🌙 Dark Mode</span>
-							<label class="toggle-switch">
-								<input type="checkbox" id="acct-theme-toggle" ${isDark ? "checked" : ""} />
-								<span class="toggle-slider"></span>
-							</label>
-						</div>
-					</div>
-
-					<div class="error" id="acct-error"></div>
+						<div class="error" id="acct-error"></div>
 				</div>
 			`;
 			attachListeners();
@@ -1150,18 +1160,6 @@ export class RStackIdentity extends HTMLElement {
 				});
 			}
 
-			// Dark Mode toggle
-			const themeToggle = overlay.querySelector("#acct-theme-toggle") as HTMLInputElement;
-			if (themeToggle) {
-				themeToggle.addEventListener("change", (e) => {
-					e.stopPropagation();
-					const newTheme = themeToggle.checked ? "dark" : "light";
-					localStorage.setItem("canvas-theme", newTheme);
-					document.documentElement.setAttribute("data-theme", newTheme);
-					this.dispatchEvent(new CustomEvent("theme-change", { bubbles: true, composed: true, detail: { theme: newTheme } }));
-					this.#render();
-				});
-			}
 		};
 
 		document.body.appendChild(overlay);
@@ -1368,6 +1366,30 @@ const STYLES = `
 .dropdown-divider { height: 1px; margin: 4px 0; }
 .dropdown-divider { background: var(--rs-border-subtle); }
 
+/* Theme toggle in dropdown */
+.dropdown-theme-row {
+  display: flex; align-items: center; justify-content: center;
+  gap: 10px; padding: 8px 16px;
+}
+.theme-icon { font-size: 0.9rem; line-height: 1; }
+.theme-toggle {
+  position: relative; width: 40px; height: 22px;
+  display: inline-block; flex-shrink: 0;
+}
+.theme-toggle input { opacity: 0; width: 0; height: 0; }
+.theme-slider {
+  position: absolute; inset: 0; border-radius: 11px;
+  background: #fbbf24; cursor: pointer; transition: background 0.25s;
+}
+.theme-slider::before {
+  content: ""; position: absolute;
+  width: 18px; height: 18px; border-radius: 50%;
+  left: 2px; bottom: 2px; background: white;
+  transition: transform 0.25s;
+}
+.theme-toggle input:checked + .theme-slider { background: #6366f1; }
+.theme-toggle input:checked + .theme-slider::before { transform: translateX(18px); }
+
 /* Avatar wrapper + notification badge */
 .avatar-wrap { position: relative; }
 .notif-badge {