diff --git a/src/client/components/Sidebar.tsx b/src/client/components/Sidebar.tsx
index 9927f1f..286c5b4 100644
--- a/src/client/components/Sidebar.tsx
+++ b/src/client/components/Sidebar.tsx
@@ -1,6 +1,6 @@
 import { Link } from "@tanstack/react-router";
 import { ChevronsUpDown, X } from "lucide-react";
-import { getProjectNavItems } from "@/client/navigation/items";
+import { getProjectNavGroups } from "@/client/navigation/items";
 
 interface SidebarProps {
   projectId: string;
@@ -9,7 +9,7 @@ interface SidebarProps {
 }
 
 export function Sidebar({ projectId, onNavigate, onClose }: SidebarProps) {
-  const projectNavItems = getProjectNavItems(projectId);
+  const navGroups = getProjectNavGroups(projectId);
 
   return (
     <div className="sidebar w-64 border-r border-base-300 h-full bg-base-100 flex flex-col">
@@ -41,29 +41,61 @@ export function Sidebar({ projectId, onNavigate, onClose }: SidebarProps) {
       </div>
 
       {/* Navigation */}
-      <nav className="flex-1 py-4 pl-3 overflow-y-auto">
-        {projectNavItems.map((item) => {
-          const { icon: Icon, ...linkProps } = item;
+      <nav className="flex-1 py-2 pl-3 overflow-y-auto">
+        {navGroups.map((entry) => {
+          if (entry.type === "standalone") {
+            const { icon: Icon, ...linkProps } = entry.item;
+            return (
+              <Link
+                key={linkProps.to}
+                {...linkProps}
+                onClick={onNavigate}
+                activeOptions={{ exact: false, includeSearch: false }}
+                className="relative flex items-center gap-3 px-4 py-2 text-sm text-base-content/60 transition-colors hover:bg-base-200 hover:text-base-content"
+                activeProps={{ className: "text-base-content font-medium" }}
+              >
+                {({ isActive }: { isActive: boolean }) => (
+                  <>
+                    {isActive ? (
+                      <div className="absolute left-0 top-1 bottom-1 w-[3px] rounded-r-full bg-primary" />
+                    ) : null}
+                    <Icon className="h-5 w-5" />
+                    {entry.item.label}
+                  </>
+                )}
+              </Link>
+            );
+          }
 
           return (
-            <Link
-              key={linkProps.to}
-              {...linkProps}
-              onClick={onNavigate}
-              activeOptions={{ exact: false, includeSearch: false }}
-              className="relative flex items-center gap-3 px-4 py-2 text-sm text-base-content/60 transition-colors hover:bg-base-200 hover:text-base-content"
-              activeProps={{ className: "text-base-content font-medium" }}
-            >
-              {({ isActive }: { isActive: boolean }) => (
-                <>
-                  {isActive ? (
-                    <div className="absolute left-0 top-1 bottom-1 w-[3px] rounded-r-full bg-primary" />
-                  ) : null}
-                  <Icon className="h-5 w-5" />
-                  {item.label}
-                </>
-              )}
-            </Link>
+            <div key={entry.label} className="mb-2">
+              <div className="px-4 pb-1 pt-3 text-xs font-semibold uppercase tracking-wider text-base-content/40">
+                {entry.label}
+              </div>
+              {entry.items.map((item) => {
+                const { icon: Icon, ...linkProps } = item;
+                return (
+                  <Link
+                    key={linkProps.to}
+                    {...linkProps}
+                    onClick={onNavigate}
+                    activeOptions={{ exact: false, includeSearch: false }}
+                    className="relative flex items-center gap-3 px-4 py-2 text-sm text-base-content/60 transition-colors hover:bg-base-200 hover:text-base-content"
+                    activeProps={{ className: "text-base-content font-medium" }}
+                  >
+                    {({ isActive }: { isActive: boolean }) => (
+                      <>
+                        {isActive ? (
+                          <div className="absolute left-0 top-1 bottom-1 w-[3px] rounded-r-full bg-primary" />
+                        ) : null}
+                        <Icon className="h-5 w-5" />
+                        {item.label}
+                      </>
+                    )}
+                  </Link>
+                );
+              })}
+            </div>
           );
         })}
       </nav>
diff --git a/src/client/layout/AppShell.tsx b/src/client/layout/AppShell.tsx
index db369fc..d76171f 100644
--- a/src/client/layout/AppShell.tsx
+++ b/src/client/layout/AppShell.tsx
@@ -1,6 +1,7 @@
 import * as React from "react";
 import { Link, useLocation } from "@tanstack/react-router";
 import {
+  ChevronDown,
   ChevronsUpDown,
   CircleHelp,
   CreditCard,
@@ -13,7 +14,7 @@ import {
   SeoApiStatusBanners,
 } from "@/client/layout/AppShellParts";
 import { ThemePreferenceMenuItems } from "@/client/components/ThemePreferenceMenuItems";
-import { getProjectNavItems } from "@/client/navigation/items";
+import { getProjectNavGroups } from "@/client/navigation/items";
 import { signOutAndRedirect, useSession } from "@/lib/auth-client";
 import { isHostedClientAuthMode } from "@/lib/auth-mode";
 import { BILLING_ROUTE } from "@/shared/billing";
@@ -151,7 +152,7 @@ function TopNav({
   pathname: string;
   onOpenDrawer: () => void;
 }) {
-  const projectNavItems = projectId ? getProjectNavItems(projectId) : [];
+  const navGroups = projectId ? getProjectNavGroups(projectId) : [];
   const isSupportActive = pathname === SUPPORT_PATH;
 
   return (
@@ -178,23 +179,78 @@ function TopNav({
           OpenSEO
         </Link>
         {projectId
-          ? projectNavItems.map((item) => {
-              const { icon: Icon, matchSegment, ...linkProps } = item;
-              const isActive = pathname.includes(matchSegment);
+          ? navGroups.map((entry) => {
+              if (entry.type === "standalone") {
+                const { icon: Icon, matchSegment, ...linkProps } = entry.item;
+                const isActive = pathname.includes(matchSegment);
+                return (
+                  <Link
+                    key={linkProps.to}
+                    {...linkProps}
+                    className={`btn btn-sm gap-2 ${
+                      isActive
+                        ? "border-transparent bg-primary/10 font-medium text-primary"
+                        : "btn-ghost text-base-content/60 hover:text-base-content"
+                    }`}
+                  >
+                    <Icon className="h-4 w-4" />
+                    {entry.item.label}
+                  </Link>
+                );
+              }
+
+              const GroupIcon = entry.icon;
+              const isGroupActive = entry.matchSegments.some((seg) =>
+                pathname.includes(seg),
+              );
 
               return (
-                <Link
-                  key={linkProps.to}
-                  {...linkProps}
-                  className={`btn btn-sm gap-2 ${
-                    isActive
-                      ? "border-transparent bg-primary/10 font-medium text-primary"
-                      : "btn-ghost text-base-content/60 hover:text-base-content"
-                  }`}
-                >
-                  <Icon className="h-4 w-4" />
-                  {item.label}
-                </Link>
+                <div key={entry.label} className="dropdown">
+                  <button
+                    type="button"
+                    tabIndex={0}
+                    className={`btn btn-sm gap-1.5 ${
+                      isGroupActive
+                        ? "border-transparent bg-primary/10 font-medium text-primary"
+                        : "btn-ghost text-base-content/60 hover:text-base-content"
+                    }`}
+                  >
+                    <GroupIcon className="h-4 w-4" />
+                    {entry.label}
+                    <ChevronDown className="h-3 w-3 opacity-50" />
+                  </button>
+                  <ul
+                    tabIndex={0}
+                    className="dropdown-content z-20 menu mt-1 w-52 rounded-box border border-base-300 bg-base-100 p-2 shadow-lg"
+                  >
+                    {entry.items.map((item) => {
+                      const { icon: Icon, matchSegment, ...linkProps } = item;
+                      const isActive = pathname.includes(matchSegment);
+                      return (
+                        <li key={linkProps.to}>
+                          <Link
+                            {...linkProps}
+                            className={
+                              isActive
+                                ? "bg-primary/10 font-medium text-primary"
+                                : ""
+                            }
+                            onClick={() => {
+                              if (
+                                document.activeElement instanceof HTMLElement
+                              ) {
+                                document.activeElement.blur();
+                              }
+                            }}
+                          >
+                            <Icon className="h-4 w-4" />
+                            {item.label}
+                          </Link>
+                        </li>
+                      );
+                    })}
+                  </ul>
+                </div>
               );
             })
           : null}
diff --git a/src/client/navigation/items.ts b/src/client/navigation/items.ts
index 09ff018..2e22b9a 100644
--- a/src/client/navigation/items.ts
+++ b/src/client/navigation/items.ts
@@ -54,7 +54,7 @@ const projectNavItems = [
   },
 ] as const;
 
-export function getProjectNavItems(projectId: string) {
+function getProjectNavItems(projectId: string) {
   return linkOptions(
     projectNavItems.map((item) => ({
       ...item,
@@ -64,6 +64,40 @@ export function getProjectNavItems(projectId: string) {
   );
 }
 
+export function getProjectNavGroups(projectId: string) {
+  const all = getProjectNavItems(projectId);
+  const bySegment = (seg: string) => all.find((i) => i.matchSegment === seg)!;
+
+  return [
+    {
+      type: "group" as const,
+      label: "Keywords",
+      icon: Search,
+      matchSegments: ["/keywords", "/saved", "/rank-tracking"],
+      items: [
+        bySegment("/keywords"),
+        bySegment("/saved"),
+        bySegment("/rank-tracking"),
+      ],
+    },
+    {
+      type: "group" as const,
+      label: "Domain",
+      icon: Globe,
+      matchSegments: ["/domain", "/backlinks", "/audit"],
+      items: [
+        bySegment("/domain"),
+        bySegment("/backlinks"),
+        bySegment("/audit"),
+      ],
+    },
+    {
+      type: "standalone" as const,
+      item: bySegment("/ai"),
+    },
+  ];
+}
+
 export const dataforseoHelpLinkOptions = linkOptions({
   to: "/help/dataforseo-api-key",
 });