diff --git a/Cargo.lock b/Cargo.lock
index 948be91..e3ab737 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -35,7 +35,7 @@ checksum = "fb8421aaa9644a5faf26735f258b669b15f063313ef8f8e2bdb28912a1a6f111"
 dependencies = [
  "enumflags2",
  "futures-util",
- "getrandom",
+ "getrandom 0.4.3",
  "serde",
  "serde_repr",
  "tokio",
@@ -253,6 +253,27 @@ version = "0.8.22"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "61803da095bee82a81bb1a452ecc25d3b2f1416d1897eb86430c6159ef717c17"
 
+[[package]]
+name = "dirs"
+version = "6.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c3e8aa94d75141228480295a7d0e7feb620b1a5ad9f12bc40be62411e38cce4e"
+dependencies = [
+ "dirs-sys",
+]
+
+[[package]]
+name = "dirs-sys"
+version = "0.5.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e01a3366d27ee9890022452ee61b2b63a67e6f13f58900b651ff5665f0bb1fab"
+dependencies = [
+ "libc",
+ "option-ext",
+ "redox_users",
+ "windows-sys 0.61.2",
+]
+
 [[package]]
 name = "dispatch2"
 version = "0.3.1"
@@ -522,6 +543,17 @@ dependencies = [
  "windows-link",
 ]
 
+[[package]]
+name = "getrandom"
+version = "0.2.17"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ff2abc00be7fca6ebc474524697ae276ad847ad0a6b3faa4bcb027e9a4614ad0"
+dependencies = [
+ "cfg-if",
+ "libc",
+ "wasi",
+]
+
 [[package]]
 name = "getrandom"
 version = "0.4.3"
@@ -886,6 +918,15 @@ dependencies = [
  "windows-link",
 ]
 
+[[package]]
+name = "libredox"
+version = "0.1.23"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "8d8f1ea3f21fd3405dcaf6c9b5c1630af9afc422d9073ea39c5f6d6c772e08ed"
+dependencies = [
+ "libc",
+]
+
 [[package]]
 name = "libspa"
 version = "0.10.1"
@@ -1097,6 +1138,12 @@ version = "1.21.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "9f7c3e4beb33f85d45ae3e3a1792185706c8e16d043238c593331cc7cd313b50"
 
+[[package]]
+name = "option-ext"
+version = "0.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "04744f49eae99ab78e0d5c0b603ab218f515ea8cfe5a456d7629ad883a3b6e7d"
+
 [[package]]
 name = "ordered-stream"
 version = "0.2.0"
@@ -1276,6 +1323,17 @@ version = "6.0.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "f8dcc9c7d52a811697d2151c701e0d08956f92b0e24136cf4cf27b57a6a0d9bf"
 
+[[package]]
+name = "redox_users"
+version = "0.5.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "a4e608c6638b9c18977b00b475ac1f28d14e84b27d8d42f70e0bf1e3dec127ac"
+dependencies = [
+ "getrandom 0.2.17",
+ "libredox",
+ "thiserror 2.0.20",
+]
+
 [[package]]
 name = "regex"
 version = "1.13.1"
@@ -1562,7 +1620,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "32497e9a4c7b38532efcdebeef879707aa9f794296a4f0244f6f69e9bc8574bd"
 dependencies = [
  "fastrand",
- "getrandom",
+ "getrandom 0.4.3",
  "once_cell",
  "rustix",
  "windows-sys 0.61.2",
@@ -1827,6 +1885,7 @@ version = "0.1.0"
 dependencies = [
  "ashpd",
  "crossbeam-channel",
+ "dirs",
  "ffmpeg-next",
  "ffmpeg-sys-next",
  "gdk",
diff --git a/Cargo.toml b/Cargo.toml
index 38f42c1..19ee7b8 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -22,3 +22,4 @@ serde = { version = "1.0.229", features = ["derive"] }
 serde_json = "1.0.151"
 tokio = { version = "1.53.1", features = ["rt", "macros", "rt-multi-thread"] }
 xcb = { version = "1.7.1", features = ["shm", "xfixes"] }
+dirs = "6.0.0"
diff --git a/src/config.rs b/src/config.rs
new file mode 100644
index 0000000..dbe1bd7
--- /dev/null
+++ b/src/config.rs
@@ -0,0 +1,69 @@
+use serde::{Deserialize, Serialize};
+use std::fs;
+use std::path::PathBuf;
+
+#[derive(Debug, Serialize, Deserialize, Clone)]
+pub struct VrecConfig {
+    pub replay_enabled: bool,
+    pub replay_duration_sec: u32,
+    pub replay_bitrate_kbps: u32,
+    
+    pub record_enabled: bool,
+    pub record_bitrate_kbps: u32,
+    
+    pub autostart: bool,
+    pub language: String,
+    pub ui_color_theme: String,
+    pub save_hotkey: String,
+    pub menu_hotkey: String,
+}
+
+impl Default for VrecConfig {
+    fn default() -> Self {
+        Self {
+            replay_enabled: true,
+            replay_duration_sec: 60,
+            replay_bitrate_kbps: 10000,
+            
+            record_enabled: false,
+            record_bitrate_kbps: 15000,
+            
+            autostart: false,
+            language: "en".to_string(),
+            ui_color_theme: "dark".to_string(),
+            save_hotkey: "Ctrl+Shift+R".to_string(),
+            menu_hotkey: "Alt+Z".to_string(),
+        }
+    }
+}
+
+impl VrecConfig {
+    pub fn config_path() -> PathBuf {
+        let mut path = dirs::config_dir().unwrap_or_else(|| PathBuf::from("."));
+        path.push("vrec");
+        path.push("config.json");
+        path
+    }
+
+    pub fn load() -> Self {
+        let path = Self::config_path();
+        if path.exists() {
+            if let Ok(data) = fs::read_to_string(path) {
+                if let Ok(config) = serde_json::from_str(&data) {
+                    return config;
+                }
+            }
+        }
+        Self::default()
+    }
+
+    pub fn save(&self) -> Result<(), std::io::Error> {
+        let path = Self::config_path();
+        if let Some(parent) = path.parent() {
+            fs::create_dir_all(parent)?;
+        }
+        let data = serde_json::to_string_pretty(self)?;
+        fs::write(path, data)?;
+        Ok(())
+    }
+}
diff --git a/src/lib.rs b/src/lib.rs
index e9af7f2..c9e19f1 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -5,3 +5,5 @@ pub mod muxer;
 pub mod hotkey;
 pub mod ipc;
 pub mod overlay;
+pub mod config;
+pub mod settings_ui;
diff --git a/src/overlay.rs b/src/overlay.rs
index 5077cb1..ebb0cb1 100644
--- a/src/overlay.rs
+++ b/src/overlay.rs
@@ -2,6 +2,8 @@ use gtk::prelude::*;
 use gtk::{Application, ApplicationWindow, Label, CssProvider, StyleContext};
 use gtk_layer_shell::{LayerShell, Layer};
 use std::time::Duration;
+use crate::config::VrecConfig;
+use crate::settings_ui;
 
 pub fn show_notification_overlay() {
     let app = Application::builder()
@@ -21,7 +23,6 @@ pub fn show_notification_overlay() {
         window.set_layer_shell_margin(gtk_layer_shell::Edge::Top, 40);
         window.set_anchor(gtk_layer_shell::Edge::Top, true);
         
-        // Make it transparent and borderless
         let css_provider = CssProvider::new();
         let css = r#"
             window {
@@ -46,7 +47,6 @@ pub fn show_notification_overlay() {
 
         window.show_all();
 
-        // Close after 2 seconds
         let window_clone = window.clone();
         glib::timeout_add_local(Duration::from_secs(2), move || {
             window_clone.close();
@@ -63,6 +63,8 @@ pub fn show_menu_overlay() {
         .build();
 
     app.connect_activate(|app| {
+        let config = VrecConfig::load();
+        
         let window = ApplicationWindow::builder()
             .application(app)
             .default_width(700)
@@ -76,7 +78,6 @@ pub fn show_menu_overlay() {
         window.set_layer_shell_margin(gtk_layer_shell::Edge::Top, 100);
         window.set_anchor(gtk_layer_shell::Edge::Top, true);
 
-        // Main layout
         let main_box = gtk::Box::new(gtk::Orientation::Horizontal, 20);
         main_box.set_margin_start(20);
         main_box.set_margin_end(20);
@@ -84,26 +85,43 @@ pub fn show_menu_overlay() {
         main_box.set_margin_bottom(20);
         main_box.set_halign(gtk::Align::Center);
         
-        // 1. Replay Box
         let replay_box = gtk::Box::new(gtk::Orientation::Vertical, 10);
-        let replay_btn = gtk::Button::with_label("Instant Replay\n🟢 ON");
+        let replay_label = if config.replay_enabled { "Instant Replay\n🟢 ON" } else { "Instant Replay\n⚪ OFF" };
+        let replay_btn = gtk::Button::with_label(replay_label);
         replay_btn.set_size_request(200, 100);
         let replay_settings_btn = gtk::Button::with_label("⚙️ Replay Settings");
+        
+        let cfg_clone1 = config.clone();
+        replay_settings_btn.connect_clicked(move |_| {
+            settings_ui::open_replay_settings(&cfg_clone1);
+        });
+        
         replay_box.pack_start(&replay_btn, true, true, 0);
         replay_box.pack_start(&replay_settings_btn, false, false, 0);
 
-        // 2. Record Box
         let record_box = gtk::Box::new(gtk::Orientation::Vertical, 10);
-        let record_btn = gtk::Button::with_label("Recording\n⚪ OFF");
+        let record_label = if config.record_enabled { "Recording\n🔴 ON" } else { "Recording\n⚪ OFF" };
+        let record_btn = gtk::Button::with_label(record_label);
         record_btn.set_size_request(200, 100);
         let record_settings_btn = gtk::Button::with_label("⚙️ Record Settings");
+        
+        let cfg_clone2 = config.clone();
+        record_settings_btn.connect_clicked(move |_| {
+            settings_ui::open_record_settings(&cfg_clone2);
+        });
+        
         record_box.pack_start(&record_btn, true, true, 0);
         record_box.pack_start(&record_settings_btn, false, false, 0);
 
-        // 3. Settings Box
         let settings_box = gtk::Box::new(gtk::Orientation::Vertical, 10);
         let gen_settings_btn = gtk::Button::with_label("General Settings");
         gen_settings_btn.set_size_request(200, 50);
+        
+        let cfg_clone3 = config.clone();
+        gen_settings_btn.connect_clicked(move |_| {
+            settings_ui::open_general_settings(&cfg_clone3);
+        });
+
         let close_btn = gtk::Button::with_label("❌ Close Menu");
         close_btn.set_size_request(200, 50);
         
@@ -123,7 +141,34 @@ pub fn show_menu_overlay() {
             window_clone.close();
         });
 
-        // Add CSS styling
+        // Toggle buttons logic (just UI for now, backend IPC will be needed to actually toggle daemon state)
+        let btn_cfg_1 = config.clone();
+        let replay_btn_clone = replay_btn.clone();
+        replay_btn.connect_clicked(move |_| {
+            let mut cfg = VrecConfig::load();
+            cfg.replay_enabled = !cfg.replay_enabled;
+            cfg.save().unwrap();
+            if cfg.replay_enabled {
+                replay_btn_clone.set_label("Instant Replay\n🟢 ON");
+            } else {
+                replay_btn_clone.set_label("Instant Replay\n⚪ OFF");
+            }
+        });
+
+        let btn_cfg_2 = config.clone();
+        let record_btn_clone = record_btn.clone();
+        record_btn.connect_clicked(move |_| {
+            let mut cfg = VrecConfig::load();
+            cfg.record_enabled = !cfg.record_enabled;
+            cfg.save().unwrap();
+            if cfg.record_enabled {
+                record_btn_clone.set_label("Recording\n🔴 ON");
+            } else {
+                record_btn_clone.set_label("Recording\n⚪ OFF");
+            }
+        });
+
+
         let css_provider = CssProvider::new();
         let css = r#"
             window {
diff --git a/src/settings_ui.rs b/src/settings_ui.rs
new file mode 100644
index 0000000..3664874
--- /dev/null
+++ b/src/settings_ui.rs
@@ -0,0 +1,147 @@
+use gtk::prelude::*;
+use gtk::{Window, WindowType, Box, Orientation, Label, Entry, Button, Switch, ComboBoxText};
+use crate::config::VrecConfig;
+
+pub fn open_replay_settings(config_in: &VrecConfig) {
+    let window = Window::new(WindowType::Toplevel);
+    window.set_title("Replay Settings");
+    window.set_default_size(300, 200);
+
+    let vbox = Box::new(Orientation::Vertical, 10);
+    vbox.set_margin(15);
+
+    let duration_label = Label::new(Some("Replay Duration (seconds):"));
+    let duration_entry = Entry::new();
+    duration_entry.set_text(&config_in.replay_duration_sec.to_string());
+
+    let bitrate_label = Label::new(Some("Bitrate (kbps):"));
+    let bitrate_entry = Entry::new();
+    bitrate_entry.set_text(&config_in.replay_bitrate_kbps.to_string());
+
+    let save_btn = Button::with_label("Save");
+    
+    vbox.pack_start(&duration_label, false, false, 0);
+    vbox.pack_start(&duration_entry, false, false, 0);
+    vbox.pack_start(&bitrate_label, false, false, 0);
+    vbox.pack_start(&bitrate_entry, false, false, 0);
+    vbox.pack_start(&save_btn, false, false, 0);
+
+    window.add(&vbox);
+
+    let window_clone = window.clone();
+    save_btn.connect_clicked(move |_| {
+        let mut cfg = VrecConfig::load();
+        if let Ok(val) = duration_entry.text().parse() {
+            cfg.replay_duration_sec = val;
+        }
+        if let Ok(val) = bitrate_entry.text().parse() {
+            cfg.replay_bitrate_kbps = val;
+        }
+        let _ = cfg.save();
+        window_clone.close();
+    });
+
+    window.show_all();
+}
+
+pub fn open_record_settings(config_in: &VrecConfig) {
+    let window = Window::new(WindowType::Toplevel);
+    window.set_title("Record Settings");
+    window.set_default_size(300, 150);
+
+    let vbox = Box::new(Orientation::Vertical, 10);
+    vbox.set_margin(15);
+
+    let bitrate_label = Label::new(Some("Recording Bitrate (kbps):"));
+    let bitrate_entry = Entry::new();
+    bitrate_entry.set_text(&config_in.record_bitrate_kbps.to_string());
+
+    let save_btn = Button::with_label("Save");
+    
+    vbox.pack_start(&bitrate_label, false, false, 0);
+    vbox.pack_start(&bitrate_entry, false, false, 0);
+    vbox.pack_start(&save_btn, false, false, 0);
+
+    window.add(&vbox);
+
+    let window_clone = window.clone();
+    save_btn.connect_clicked(move |_| {
+        let mut cfg = VrecConfig::load();
+        if let Ok(val) = bitrate_entry.text().parse() {
+            cfg.record_bitrate_kbps = val;
+        }
+        let _ = cfg.save();
+        window_clone.close();
+    });
+
+    window.show_all();
+}
+
+pub fn open_general_settings(config_in: &VrecConfig) {
+    let window = Window::new(WindowType::Toplevel);
+    window.set_title("General Settings");
+    window.set_default_size(350, 300);
+
+    let vbox = Box::new(Orientation::Vertical, 10);
+    vbox.set_margin(15);
+
+    // Autostart
+    let hbox_auto = Box::new(Orientation::Horizontal, 10);
+    let auto_label = Label::new(Some("Autostart with system:"));
+    let auto_switch = Switch::new();
+    auto_switch.set_active(config_in.autostart);
+    hbox_auto.pack_start(&auto_label, false, false, 0);
+    hbox_auto.pack_start(&auto_switch, false, false, 0);
+
+    // Theme
+    let theme_label = Label::new(Some("UI Theme:"));
+    let theme_combo = ComboBoxText::new();
+    theme_combo.append_text("dark");
+    theme_combo.append_text("light");
+    theme_combo.set_active(Some(if config_in.ui_color_theme == "dark" { 0 } else { 1 }));
+
+    // Language
+    let lang_label = Label::new(Some("Language Code (e.g. en, fr):"));
+    let lang_entry = Entry::new();
+    lang_entry.set_text(&config_in.language);
+
+    // Hotkeys
+    let menu_hk_label = Label::new(Some("Menu Hotkey:"));
+    let menu_hk_entry = Entry::new();
+    menu_hk_entry.set_text(&config_in.menu_hotkey);
+    
+    let save_hk_label = Label::new(Some("Save Replay Hotkey:"));
+    let save_hk_entry = Entry::new();
+    save_hk_entry.set_text(&config_in.save_hotkey);
+
+    let save_btn = Button::with_label("Save General Settings");
+    
+    vbox.pack_start(&hbox_auto, false, false, 0);
+    vbox.pack_start(&theme_label, false, false, 0);
+    vbox.pack_start(&theme_combo, false, false, 0);
+    vbox.pack_start(&lang_label, false, false, 0);
+    vbox.pack_start(&lang_entry, false, false, 0);
+    vbox.pack_start(&menu_hk_label, false, false, 0);
+    vbox.pack_start(&menu_hk_entry, false, false, 0);
+    vbox.pack_start(&save_hk_label, false, false, 0);
+    vbox.pack_start(&save_hk_entry, false, false, 0);
+    vbox.pack_start(&save_btn, false, false, 0);
+
+    window.add(&vbox);
+
+    let window_clone = window.clone();
+    save_btn.connect_clicked(move |_| {
+        let mut cfg = VrecConfig::load();
+        cfg.autostart = auto_switch.is_active();
+        if let Some(txt) = theme_combo.active_text() {
+            cfg.ui_color_theme = txt.to_string();
+        }
+        cfg.language = lang_entry.text().to_string();
+        cfg.menu_hotkey = menu_hk_entry.text().to_string();
+        cfg.save_hotkey = save_hk_entry.text().to_string();
+        let _ = cfg.save();
+        window_clone.close();
+    });
+
+    window.show_all();
+}