diff --git a/init.el b/init.el
index cdf2daa..647b07c 100644
--- a/init.el
+++ b/init.el
@@ -5,6 +5,7 @@
 ;;; and maintainability.
 
 ;;; Code:
+(server-mode 1)
 
 ;; Add lisp subdirectory to load path (avoids load-path warning)
 (add-to-list 'load-path (expand-file-name "lisp" user-emacs-directory))
diff --git a/lisp/init-completion.el b/lisp/init-completion.el
index 7fbe846..7f9df47 100644
--- a/lisp/init-completion.el
+++ b/lisp/init-completion.el
@@ -20,6 +20,26 @@
   ;; Enable cycling
   (setq vertico-cycle t))
 
+;; Load vertico extensions
+(add-to-list 'load-path
+             (expand-file-name "extensions"
+                               (file-name-directory (locate-library "vertico"))))
+
+;; Vertico directory navigation - arrow keys for file browsing
+(use-package vertico-directory
+  :ensure nil  ; Bundled with vertico
+  :after vertico
+  :bind (:map vertico-map
+         ;; Navigate up with left arrow
+         ("<left>" . vertico-directory-up)
+         ;; Complete/enter with right arrow
+         ("<right>" . vertico-directory-enter)
+         ;; Backspace goes up if at beginning
+         ("DEL" . vertico-directory-delete-char)
+         ("M-DEL" . vertico-directory-delete-word))
+  ;; Tidy shadowed file names
+  :hook (rfn-eshadow-update-overlay . vertico-directory-tidy))
+
 ;;; Savehist - Persist history over Emacs restarts
 (use-package savehist
   :ensure nil
diff --git a/lisp/init-perspective.el b/lisp/init-perspective.el
new file mode 100644
index 0000000..cd57e63
--- /dev/null
+++ b/lisp/init-perspective.el
@@ -0,0 +1,157 @@
+;;; init-perspective.el --- Perspective and Projectile configuration -*- lexical-binding: t -*-
+;;; Commentary:
+;;; Workspace management with perspective.el integrated with Projectile
+
+;;; Code:
+
+;; Projectile - Project management
+(use-package projectile
+  :ensure t
+  :diminish projectile-mode
+  :init
+  (setq projectile-keymap-prefix (kbd "C-c p"))
+  :config
+  (projectile-mode +1)
+
+  ;; Use hybrid indexing for best performance
+  (setq projectile-indexing-method 'hybrid)
+
+  ;; Enable caching
+  (setq projectile-enable-caching t)
+
+  ;; Project root markers
+  (setq projectile-project-root-files-top-down-recurring
+        '(".projectile" ".git" ".hg" ".svn"))
+
+  (setq projectile-project-root-files
+        '("Makefile" "package.json" "Cargo.toml" "go.mod"
+          "pom.xml" "build.gradle" "requirements.txt"
+          "setup.py" "pyproject.toml" "Gemfile" "composer.json"))
+
+  ;; Sort files by recently opened
+  (setq projectile-sort-order 'recentf)
+
+  ;; Use completion system (works with vertico/consult)
+  (setq projectile-completion-system 'default)
+
+  ;; Where to store projectile cache
+  (setq projectile-cache-file
+        (expand-file-name "projectile.cache" user-emacs-directory))
+  (setq projectile-known-projects-file
+        (expand-file-name "projectile-bookmarks.eld" user-emacs-directory))
+
+  ;; Integration with consult if available
+  (with-eval-after-load 'consult
+    (setq consult-project-function (lambda (_) (projectile-project-root)))))
+
+;; Perspective - Workspace management
+(use-package perspective
+  :ensure t
+  :bind (("C-x x s" . persp-switch)
+         ("C-x x k" . persp-kill)
+         ("C-x x r" . persp-rename)
+         ("C-x x a" . persp-add-buffer)
+         ("C-x x A" . persp-set-buffer)
+         ("C-x x b" . persp-switch-to-buffer)
+         ("C-x x n" . persp-next)
+         ("C-x x p" . persp-prev)
+         ("C-x x i" . persp-import)
+         ("C-x x m" . persp-merge)
+         ("C-x x u" . persp-unmerge)
+         ("C-x x g" . persp-add-buffer-to-frame-global)
+         ("C-x x x" . persp-switch-last))
+  :custom
+  ;; Show perspective name in mode line
+  (persp-mode-prefix-key (kbd "C-x x"))
+  (persp-initial-frame-name "main")
+  ;; Don't auto-kill buffers when perspective is killed
+  (persp-kill-foreign-buffer-behaviour nil)
+  ;; Save state on exit
+  (persp-state-default-file (expand-file-name "persp-state" user-emacs-directory))
+  :init
+  (persp-mode +1)
+  :config
+  ;; Show perspective in mode line
+  (setq persp-show-modestring t)
+
+   ;; Remove/bury buffers not associated with the current perspective when switching
+   (defun my/persp-remove-foreign-buffers ()
+     "Bury buffers not belonging to the current perspective."
+     (when (and (boundp 'perspectives-hash) (hash-table-p perspectives-hash))
+       (let ((persp-buffers (persp-current-buffers)))
+         (dolist (buf (buffer-list))
+           (unless (or (memq buf persp-buffers)
+                       (string-prefix-p " " (buffer-name buf))  ; internal buffers
+                       (string-prefix-p "*Messages*" (buffer-name buf))
+                       (string-prefix-p "*scratch*" (buffer-name buf)))
+             (bury-buffer buf))))))
+
+   (add-hook 'persp-activated-hook #'my/persp-remove-foreign-buffers)
+
+  ;; Save and restore perspectives on Emacs quit/start
+  (add-hook 'kill-emacs-hook #'persp-state-save)
+
+   ;; Restore perspectives on startup (after init)
+   (defun my/persp-restore-state ()
+     "Restore perspective state if file exists."
+     (when (file-exists-p persp-state-default-file)
+       (condition-case err
+           (persp-state-load persp-state-default-file)
+         (error
+          (message "Failed to restore perspective state: %s. Resetting perspectives." (error-message-string err))
+          (my/persp-reset)))))
+   (add-hook 'emacs-startup-hook #'my/persp-restore-state))
+
+;; Persp-Projectile - Integration between perspective and projectile
+(use-package persp-projectile
+  :ensure t
+  :after (perspective projectile)
+  :bind (:map projectile-mode-map
+              ("C-c p p" . projectile-persp-switch-project))
+  :config
+  ;; When switching projects, create/switch to a perspective named after the project
+  (setq projectile-switch-project-action #'projectile-find-file))
+
+;; Helper functions
+(defun my/persp-project-switch ()
+  "Switch to a project and its perspective."
+  (interactive)
+  (call-interactively #'projectile-persp-switch-project))
+
+(defun my/persp-kill-project-buffers ()
+  "Kill all buffers in current perspective/project."
+  (interactive)
+  (if (and (boundp 'perspectives-hash) (hash-table-p perspectives-hash))
+      (when (y-or-n-p (format "Kill all buffers in perspective '%s'? " (persp-current-name)))
+        (persp-kill-buffer*))
+    (message "Perspectives not initialized or corrupted. Use M-x my/persp-reset to reset.")))
+
+(defun my/persp-reset ()
+  "Reset perspectives if they become corrupted."
+  (interactive)
+  (when (boundp 'perspectives-hash)
+    (setq perspectives-hash (make-hash-table :test 'equal)))
+  (persp-mode +1)
+  (message "Perspectives reset."))
+
+(defun my/persp-list ()
+  "List all perspectives."
+  (interactive)
+  (if (and (boundp 'perspectives-hash) (hash-table-p perspectives-hash))
+      (let ((perspectives (persp-names)))
+        (message "Perspectives: %s" (string-join perspectives ", ")))
+    (message "Perspectives not initialized or corrupted. Use M-x my/persp-reset to reset.")))
+
+;; Additional keybindings for convenience
+(with-eval-after-load 'projectile
+  (define-key projectile-mode-map (kbd "C-c p P") #'my/persp-project-switch)
+  (define-key projectile-mode-map (kbd "C-c p K") #'my/persp-kill-project-buffers)
+  (define-key projectile-mode-map (kbd "C-c p L") #'my/persp-list))
+
+;; Integration with CUA mode - ensure perspective commands work in special modes
+(with-eval-after-load 'perspective
+  (dolist (cmd '(persp-switch persp-kill persp-rename persp-next persp-prev))
+    (put cmd 'CUA 'move)))
+
+(provide 'init-perspective)
+;;; init-perspective.el ends here