diff --git a/src/renderer/index.html b/src/renderer/index.html
index 885f4065..da009c30 100644
--- a/src/renderer/index.html
+++ b/src/renderer/index.html
@@ -62,7 +62,16 @@ <h2 class="sidebar-title">INSTALLED</h2>
                             <button type="button" class="search-filter-btn" id="tools-filter-btn" aria-label="Open filters and sort" title="Filters and Sort">
                                 <img width="16" height="16" alt="" aria-hidden="true" />
                             </button>
-                            <button type="button" class="search-filter-btn filter-clear-btn" id="tools-filter-clear-btn" aria-label="Clear active filters" title="Clear active filters" style="display: none">&times;</button>
+                            <button
+                                type="button"
+                                class="search-filter-btn filter-clear-btn"
+                                id="tools-filter-clear-btn"
+                                aria-label="Clear active filters"
+                                title="Clear active filters"
+                                style="display: none"
+                            >
+                                &times;
+                            </button>
                         </div>
                     </div>
                     <div class="filter-dropdown" id="tools-filter-dropdown" style="display: none">
@@ -91,6 +100,13 @@ <h2 class="sidebar-title">INSTALLED</h2>
                                 <option value="">All Authors</option>
                             </select>
                         </div>
+                        <div class="filter-divider"></div>
+                        <div class="filter-section">
+                            <label class="filter-checkbox-label" for="tools-update-required-filter">
+                                <input type="checkbox" id="tools-update-required-filter" class="filter-checkbox-input" />
+                                <span>Update Available</span>
+                            </label>
+                        </div>
                     </div>
                     <div class="sidebar-body">
                         <div class="tools-list-pptb" id="sidebar-tools-list">
@@ -122,7 +138,16 @@ <h2 class="sidebar-title">CONNECTIONS</h2>
                             <button class="search-filter-btn" id="connections-filter-btn" title="Filters and Sort" aria-label="Open filters and sort">
                                 <img width="16" height="16" alt="" aria-hidden="true" />
                             </button>
-                            <button type="button" class="search-filter-btn filter-clear-btn" id="connections-filter-clear-btn" aria-label="Clear active filters" title="Clear active filters" style="display: none">&times;</button>
+                            <button
+                                type="button"
+                                class="search-filter-btn filter-clear-btn"
+                                id="connections-filter-clear-btn"
+                                aria-label="Clear active filters"
+                                title="Clear active filters"
+                                style="display: none"
+                            >
+                                &times;
+                            </button>
                         </div>
                     </div>
                     <div class="filter-dropdown" id="connections-filter-dropdown" style="display: none">
@@ -185,7 +210,16 @@ <h2 class="sidebar-title">MARKETPLACE</h2>
                             <button class="search-filter-btn" id="marketplace-filter-btn" aria-label="Open marketplace filters and sort options" title="Filters and Sort">
                                 <img width="16" height="16" alt="" aria-hidden="true" />
                             </button>
-                            <button type="button" class="search-filter-btn filter-clear-btn" id="marketplace-filter-clear-btn" aria-label="Clear active filters" title="Clear active filters" style="display: none">&times;</button>
+                            <button
+                                type="button"
+                                class="search-filter-btn filter-clear-btn"
+                                id="marketplace-filter-clear-btn"
+                                aria-label="Clear active filters"
+                                title="Clear active filters"
+                                style="display: none"
+                            >
+                                &times;
+                            </button>
                         </div>
                     </div>
                     <div class="filter-dropdown" id="marketplace-filter-dropdown" style="display: none">
@@ -723,7 +757,7 @@ <h3>Tool Settings</h3>
         <div id="notification-container" class="notification-container"></div>
 
         <!-- Modal Backdrop Overlay -->
-        <div id="modal-backdrop" class="modal-backdrop" style="display: none;" aria-hidden="true"></div>
+        <div id="modal-backdrop" class="modal-backdrop" style="display: none" aria-hidden="true"></div>
 
         <!-- Global Search Command Palette -->
         <div id="global-search-overlay" class="global-search-overlay" style="display: none" role="dialog" aria-modal="true" aria-label="Global Search">
diff --git a/src/renderer/modules/toolsSidebarManagement.ts b/src/renderer/modules/toolsSidebarManagement.ts
index 0f4e347a..b9b003a5 100644
--- a/src/renderer/modules/toolsSidebarManagement.ts
+++ b/src/renderer/modules/toolsSidebarManagement.ts
@@ -14,6 +14,8 @@ import { launchTool } from "./toolManagement";
 
 let activeToolContextMenu: { menu: HTMLElement; anchor: HTMLElement; cleanup: () => void } | null = null;
 
+type CheckboxElement = HTMLInputElement & { _pptbBound?: boolean };
+
 /**
  * Load and display installed tools in the sidebar
  */
@@ -62,13 +64,15 @@ export async function loadSidebarTools(): Promise<void> {
         const categoryFilter = document.getElementById("tools-category-filter") as HTMLSelectElement | null;
         const authorFilter = document.getElementById("tools-author-filter") as HTMLSelectElement | null;
         const sortSelect = document.getElementById("tools-sort-select") as HTMLSelectElement | null;
+        const updateRequiredFilter = document.getElementById("tools-update-required-filter") as CheckboxElement | null;
 
         const searchTerm = searchInput?.value ? searchInput.value.toLowerCase() : "";
         const selectedCategory = categoryFilter?.value || "";
         const selectedAuthor = authorFilter?.value || "";
+        const showUpdateRequiredOnly = !!updateRequiredFilter?.checked;
 
         // Update filter button indicator and one-click clear button visibility
-        const hasDropdownFilters = !!(selectedCategory || selectedAuthor);
+        const hasDropdownFilters = !!(selectedCategory || selectedAuthor || showUpdateRequiredOnly);
         const toolsFilterBtn = document.getElementById("tools-filter-btn");
         if (toolsFilterBtn) {
             toolsFilterBtn.classList.toggle("has-active-filters", hasDropdownFilters);
@@ -112,6 +116,11 @@ export async function loadSidebarTools(): Promise<void> {
                 return false;
             }
 
+            // Update required filter
+            if (showUpdateRequiredOnly && !t.hasUpdate) {
+                return false;
+            }
+
             // Deprecated filter
             if (t.status === "deprecated") {
                 if (deprecatedToolsVisibility === "hide-all" || deprecatedToolsVisibility === "show-marketplace") {
@@ -151,7 +160,7 @@ export async function loadSidebarTools(): Promise<void> {
         // Empty state when no matches after filtering
         if (sortedTools.length === 0) {
             const hasSearchTerm = searchTerm.length > 0;
-            const hasActiveFilters = hasSearchTerm || selectedCategory || selectedAuthor;
+            const hasActiveFilters = hasSearchTerm || selectedCategory || selectedAuthor || showUpdateRequiredOnly;
             const emptyMessage = hasSearchTerm ? `No installed tools match "${searchTerm}".` : hasActiveFilters ? "No tools match the current filters." : "Try a different search term.";
             toolsList.innerHTML = `
                 <div class="empty-state">
@@ -268,7 +277,7 @@ export async function loadSidebarTools(): Promise<void> {
                                 <span class="tool-item-icon-pptb">${toolIconHtml}</span>
                                 <div class="tool-item-info-pptb">
                                     <div class="tool-item-name-pptb">
-                                        ${tool.name} ${shouldShowUpdateBadge ? '<span class="tool-update-badge" title="Update available">⬆</span>' : ""}
+                                        ${tool.name}
                                     </div>
                                     <div class="tool-item-version-pptb">v${tool.version}</div>
                                 </div>
@@ -281,9 +290,12 @@ export async function loadSidebarTools(): Promise<void> {
                                     `
                                         : ""
                                 }
-                                <button class="icon-button tool-more-btn" data-action="more" data-tool-id="${
-                                    tool.id
-                                }" title="More options" aria-haspopup="true" aria-expanded="false">${moreIcon}</button>
+                                <div class="tool-item-menu-stack-pptb">
+                                    <button class="icon-button tool-more-btn" data-action="more" data-tool-id="${
+                                        tool.id
+                                    }" title="More options" aria-haspopup="true" aria-expanded="false">${moreIcon}</button>
+                                    ${shouldShowUpdateBadge ? '<span class="tool-update-badge" title="Update available" role="img" aria-label="Update available">▲</span>' : ""}
+                                </div>
                             </div>
                         </div>
                         <div class="tool-item-authors-pptb">${authorsDisplay}</div>
@@ -299,7 +311,7 @@ export async function loadSidebarTools(): Promise<void> {
                                 <span class="tool-item-icon-pptb">${toolIconHtml}</span>
                                 <div class="tool-item-info-pptb">
                                     <div class="tool-item-name-pptb">
-                                        ${tool.name} ${shouldShowUpdateBadge ? '<span class="tool-update-badge" title="Update available">⬆</span>' : ""}
+                                        ${tool.name}
                                     </div>
                                     <div class="tool-item-version-pptb">v${tool.version}</div>
                                 </div>
@@ -312,9 +324,12 @@ export async function loadSidebarTools(): Promise<void> {
                                     `
                                         : ""
                                 }
-                                <button class="icon-button tool-more-btn" data-action="more" data-tool-id="${
-                                    tool.id
-                                }" title="More options" aria-haspopup="true" aria-expanded="false">${moreIcon}</button>
+                                <div class="tool-item-menu-stack-pptb">
+                                    <button class="icon-button tool-more-btn" data-action="more" data-tool-id="${
+                                        tool.id
+                                    }" title="More options" aria-haspopup="true" aria-expanded="false">${moreIcon}</button>
+                                    ${shouldShowUpdateBadge ? '<span class="tool-update-badge" title="Update available" role="img" aria-label="Update available">▲</span>' : ""}
+                                </div>
                             </div>
                         </div>
                         <div class="tool-item-description-pptb">${description}</div>
@@ -408,6 +423,7 @@ export async function loadSidebarTools(): Promise<void> {
     const searchInput = document.getElementById("tools-search-input") as HTMLInputElement | null;
     const categoryFilter = document.getElementById("tools-category-filter") as HTMLSelectElement | null;
     const authorFilter = document.getElementById("tools-author-filter") as HTMLSelectElement | null;
+    const updateRequiredFilter = document.getElementById("tools-update-required-filter") as CheckboxElement | null;
 
     if (searchInput && !(searchInput as any)._pptbBound) {
         (searchInput as any)._pptbBound = true;
@@ -431,6 +447,13 @@ export async function loadSidebarTools(): Promise<void> {
         });
     }
 
+    if (updateRequiredFilter && !updateRequiredFilter._pptbBound) {
+        updateRequiredFilter._pptbBound = true;
+        updateRequiredFilter.addEventListener("change", () => {
+            loadSidebarTools();
+        });
+    }
+
     // Setup sort event listener
     const sortSelect = document.getElementById("tools-sort-select") as HTMLSelectElement | null;
     if (sortSelect && !(sortSelect as any)._pptbBound) {
@@ -724,12 +747,17 @@ function clearAllFilters(): void {
         authorFilter.value = "";
     }
 
+    const updateRequiredFilter = document.getElementById("tools-update-required-filter") as CheckboxElement | null;
+    if (updateRequiredFilter) {
+        updateRequiredFilter.checked = false;
+    }
+
     // Reload the sidebar tools to reflect the cleared filters
     loadSidebarTools();
 }
 
 /**
- * Clear only the dropdown filter selections (category, author) for installed tools.
+ * Clear only the dropdown filter selections (category, author) and the "Update Available" checkbox for installed tools.
  * Leaves the search input unchanged.
  */
 export function clearInstalledToolsDropdownFilters(): void {
@@ -745,6 +773,11 @@ export function clearInstalledToolsDropdownFilters(): void {
         authorFilter.value = "";
     }
 
+    const updateRequiredFilter = document.getElementById("tools-update-required-filter") as CheckboxElement | null;
+    if (updateRequiredFilter) {
+        updateRequiredFilter.checked = false;
+    }
+
     // Reload the sidebar tools to reflect the cleared filters
     loadSidebarTools();
 }
diff --git a/src/renderer/styles.scss b/src/renderer/styles.scss
index 97041f7b..f3ead13f 100644
--- a/src/renderer/styles.scss
+++ b/src/renderer/styles.scss
@@ -469,7 +469,9 @@ body {
     border-radius: 10px;
     padding: 16px 18px;
     box-shadow: 0 4px 14px rgba(0, 0, 0, 0.04);
-    transition: border-color 0.2s ease, box-shadow 0.2s ease;
+    transition:
+        border-color 0.2s ease,
+        box-shadow 0.2s ease;
 }
 
 .settings-section-card:hover {
@@ -1645,7 +1647,9 @@ body.dark-theme .settings-section-card {
     cursor: pointer;
     color: var(--text-color);
     opacity: 0.7;
-    transition: opacity 0.2s, background-color 0.2s;
+    transition:
+        opacity 0.2s,
+        background-color 0.2s;
     z-index: 10;
     flex-shrink: 0;
 }
@@ -1785,7 +1789,9 @@ body.dark-theme .settings-section-card {
     line-height: 1;
     border-radius: 3px;
     opacity: 0;
-    transition: opacity 0.2s, background-color 0.2s;
+    transition:
+        opacity 0.2s,
+        background-color 0.2s;
 }
 
 .tool-tab:hover .tool-tab-close {
@@ -1807,7 +1813,9 @@ body.dark-theme .settings-section-card {
     line-height: 1;
     border-radius: 3px;
     opacity: 0;
-    transition: opacity 0.2s, background-color 0.2s;
+    transition:
+        opacity 0.2s,
+        background-color 0.2s;
     display: flex;
     align-items: center;
     justify-content: center;
@@ -2033,7 +2041,9 @@ body.dark-theme .settings-section-card {
     text-decoration: none;
     cursor: pointer;
     border-left: 3px solid transparent;
-    transition: background 0.15s, color 0.15s;
+    transition:
+        background 0.15s,
+        color 0.15s;
 }
 
 .settings-nav-link:hover {
@@ -2462,7 +2472,10 @@ body.dark-theme .settings-vscode-item:hover {
     opacity: 0;
     pointer-events: none;
     visibility: hidden;
-    transition: opacity 0.2s ease, background-color 0.2s ease, color 0.2s ease;
+    transition:
+        opacity 0.2s ease,
+        background-color 0.2s ease,
+        color 0.2s ease;
 }
 
 .sidebar-search-input-wrapper:has(.search-input:not(:placeholder-shown)) .search-clear-btn {
@@ -2489,7 +2502,6 @@ body.dark-theme .settings-vscode-item:hover {
     flex-shrink: 0;
 }
 
-
 .search-filter-btn {
     padding: 6px 8px;
     background: none;
@@ -2570,6 +2582,25 @@ body.dark-theme .search-filter-btn.active img {
     padding: 8px 12px;
 }
 
+.filter-checkbox-label {
+    display: inline-flex;
+    align-items: center;
+    gap: 8px;
+    cursor: pointer;
+    font-size: 13px;
+    color: var(--text-color);
+    user-select: none;
+}
+
+.filter-checkbox-input {
+    width: 16px;
+    height: 16px;
+    margin: 0;
+    cursor: pointer;
+    accent-color: var(--accent-color, #6a00ff);
+    flex-shrink: 0;
+}
+
 .filter-section-title {
     font-size: 11px;
     font-weight: 600;
@@ -2695,7 +2726,10 @@ body.dark-theme .search-filter-btn.active img {
     background: var(--card-background);
     box-shadow: 0 2px 6px rgba(0, 0, 0, 0.05);
     cursor: pointer;
-    transition: background-color 0.2s, box-shadow 0.2s, border-color 0.2s;
+    transition:
+        background-color 0.2s,
+        box-shadow 0.2s,
+        border-color 0.2s;
 }
 
 .tool-item-pptb-local {
@@ -2728,10 +2762,23 @@ body.dark-theme .search-filter-btn.active img {
 
 .tool-item-header-right-pptb {
     display: flex;
-    align-items: center;
+    align-items: flex-start;
     gap: 8px;
 }
 
+.tool-item-menu-stack-pptb {
+    display: flex;
+    flex-direction: column;
+    align-items: center;
+    gap: 4px;
+}
+
+.tool-favorite-icon {
+    display: block;
+    align-self: flex-start;
+    margin-top: 0;
+}
+
 .tool-item-icon-pptb {
     font-size: 16px;
     width: 30px;
@@ -2784,7 +2831,9 @@ img.tool-item-icon-img {
     border: none;
     cursor: pointer;
     padding: 2px 4px;
-    transition: transform 0.2s, opacity 0.2s;
+    transition:
+        transform 0.2s,
+        opacity 0.2s;
     display: flex;
     align-items: center;
     justify-content: center;
@@ -2877,10 +2926,10 @@ img.tool-item-icon-img {
 }
 
 .tool-update-badge {
-    display: inline-block;
+    display: block;
     font-size: 12px;
-    color: #0078d4;
-    margin-left: 6px;
+    line-height: 1;
+    color: var(--accent-color, #6a00ff);
     animation: pulse 2s infinite;
 }
 
@@ -3037,7 +3086,10 @@ img.tool-item-icon-img {
     border-radius: 8px;
     background: var(--card-background);
     box-shadow: 0 2px 6px rgba(0, 0, 0, 0.05);
-    transition: background-color 0.2s, box-shadow 0.2s, border-color 0.2s;
+    transition:
+        background-color 0.2s,
+        box-shadow 0.2s,
+        border-color 0.2s;
 }
 
 .marketplace-item-pptb:hover {
@@ -3107,7 +3159,11 @@ img.tool-item-icon-img {
     color: var(--text-color);
     padding: 0;
     cursor: pointer;
-    transition: background-color 0.2s ease, border-color 0.2s ease, color 0.2s ease, transform 0.2s ease;
+    transition:
+        background-color 0.2s ease,
+        border-color 0.2s ease,
+        color 0.2s ease,
+        transform 0.2s ease;
 }
 
 body.dark-theme .install-button {
@@ -3242,7 +3298,10 @@ body.light-theme .install-button:focus-visible img {
     border-radius: 8px;
     background: var(--card-background);
     box-shadow: 0 2px 6px rgba(0, 0, 0, 0.05);
-    transition: background-color 0.2s, box-shadow 0.2s, border-color 0.2s;
+    transition:
+        background-color 0.2s,
+        box-shadow 0.2s,
+        border-color 0.2s;
     margin-bottom: 10px;
 }
 
@@ -3911,8 +3970,8 @@ body.dark-theme .home-container::-webkit-scrollbar-thumb:hover {
     content: "";
     position: absolute;
     inset: 0;
-    background: radial-gradient(circle at 10% 10%, rgba(255, 255, 255, 0.55) 0%, rgba(255, 255, 255, 0) 60%),
-        radial-gradient(circle at 90% 90%, rgba(255, 255, 255, 0.35) 0%, rgba(255, 255, 255, 0) 70%);
+    background:
+        radial-gradient(circle at 10% 10%, rgba(255, 255, 255, 0.55) 0%, rgba(255, 255, 255, 0) 60%), radial-gradient(circle at 90% 90%, rgba(255, 255, 255, 0.35) 0%, rgba(255, 255, 255, 0) 70%);
     pointer-events: none;
 }
 body.dark-theme #tool-detail-modal .modal-content.tool-detail-modern {
@@ -4735,7 +4794,9 @@ fluent-badge {
     border-radius: 3px;
     font-size: 13px;
     cursor: pointer;
-    transition: background-color 0.2s, color 0.2s;
+    transition:
+        background-color 0.2s,
+        color 0.2s;
     white-space: nowrap;
 }
 
@@ -5102,7 +5163,9 @@ body.dark-theme .csp-warning ul {
     align-items: flex-start;
     gap: 12px;
     animation: slideInRight 0.3s ease-out;
-    transition: opacity 0.2s ease-out, transform 0.2s ease-out;
+    transition:
+        opacity 0.2s ease-out,
+        transform 0.2s ease-out;
     max-width: 100%;
 }
 
@@ -5707,7 +5770,6 @@ body.dark-theme .global-search-item-badge.badge-settings {
     }
 }
 
-
 /* Export button on category group header */
 .connection-group-export-btn {
     background: none;