diff --git a/backend/src/ingestion/youtubei.ts b/backend/src/ingestion/youtubei.ts
index ae95a6b..6c621bc 100644
--- a/backend/src/ingestion/youtubei.ts
+++ b/backend/src/ingestion/youtubei.ts
@@ -1,4 +1,4 @@
-import type { ChatMessage } from '@shared/chat';
+import type { ChatMessage, Badge, SuperChatInfo } from '@shared/chat';
 import EventEmitter from 'eventemitter3';
 import Innertube, { UniversalCache } from 'youtubei.js';
 
@@ -124,6 +124,40 @@ function resolveTimestamp(timestamp: number | string | undefined): string {
   return new Date().toISOString();
 }
 
+function extractBadges(item: any): Badge[] {
+  const badges: Badge[] = [];
+  
+  if (!item.author?.badges) return badges;
+
+  for (const badge of item.author.badges) {
+    const label = badge.tooltip ?? badge.label ?? '';
+    
+    if (label.toLowerCase().includes('moderator')) {
+      badges.push({ type: 'moderator', label });
+    } else if (label.toLowerCase().includes('member')) {
+      badges.push({ type: 'member', label });
+    } else if (label.toLowerCase().includes('verified')) {
+      badges.push({ type: 'verified', label });
+    } else if (label) {
+      badges.push({ type: 'custom', label });
+    }
+  }
+
+  return badges;
+}
+
+function extractSuperChatInfo(item: any): SuperChatInfo | undefined {
+  if (item.type !== 'LiveChatPaidMessage') return undefined;
+
+  const amount = item.purchase_amount_text?.toString() ?? '';
+  
+  return {
+    amount,
+    currency: item.currency ?? 'USD',
+    color: item.body_background_color?.toString() ?? '#1e3a8a'
+  };
+}
+
 function normalizeAction(action: any): ChatMessage | null {
   if (!action || action.type !== 'AddChatItemAction') {
     return null;
@@ -137,11 +171,23 @@ function normalizeAction(action: any): ChatMessage | null {
     item.type === 'LiveChatPaidMessage' ||
     item.type === 'LiveChatMembershipItem'
   ) {
+    const badges = extractBadges(item);
+    const isModerator = badges.some(b => b.type === 'moderator');
+    const isMember = badges.some(b => b.type === 'member');
+    const isVerified = badges.some(b => b.type === 'verified');
+    
     return {
       id: String(item.id ?? item.timestamp_usec ?? Date.now()),
       author: String(item.author?.name ?? 'Unknown'),
+      authorPhoto: item.author?.thumbnails?.[0]?.url,
       text: resolveMessageText(item),
-      publishedAt: resolveTimestamp(item.timestamp ?? item.timestamp_usec)
+      publishedAt: resolveTimestamp(item.timestamp ?? item.timestamp_usec),
+      badges: badges.length > 0 ? badges : undefined,
+      isModerator,
+      isMember,
+      isVerified,
+      superChat: extractSuperChatInfo(item),
+      membershipGift: item.type === 'LiveChatMembershipItem'
     };
   }
 
diff --git a/client/app/dashboard/page.tsx b/client/app/dashboard/page.tsx
index 7bda191..bc3f353 100644
--- a/client/app/dashboard/page.tsx
+++ b/client/app/dashboard/page.tsx
@@ -51,16 +51,26 @@ export default function DashboardPage() {
   return (
     <main className="dashboard">
       <header className="dashboard__header">
-        <div>
-          <h1>Operator Dashboard</h1>
-          <p className="muted">Click a message to push it to the OBS overlay stream.</p>
+        <div className="dashboard__title">
+          <h1>🎬 Live Chat Monitor</h1>
+          <p className="muted">Select a message to display on your OBS overlay</p>
+        </div>
+        <div className="dashboard__status">
+          <span className={`status status--${overlayStatus}`}>{statusHint}</span>
+          <span className="message-count">{messages.length} messages</span>
         </div>
-        <span className={`status status--${overlayStatus}`}>{statusHint}</span>
       </header>
 
-      <section className="dashboard__content">
-        <article className="panel">
-          <header className="panel__title">Live Chat</header>
+      <section className="dashboard__main">
+        <div className="chatPanel">
+          <div className="chatPanel__header">
+            <h2>Live Chat Stream</h2>
+            {selection && (
+              <button className="btn-clear" onClick={handleClear}>
+                Clear Selection
+              </button>
+            )}
+          </div>
           <div className="chatList">
             {messages.map((message) => (
               <button
@@ -70,35 +80,76 @@ export default function DashboardPage() {
                 }
                 onClick={() => handleSelect(message)}
               >
-                <span className="chatItem__author">{message.author}</span>
-                <span className="chatItem__text">{message.text}</span>
-                <time>{new Date(message.publishedAt).toLocaleTimeString()}</time>
+                <div className="chatItem__header">
+                  {message.authorPhoto && (
+                    <img src={message.authorPhoto} alt={message.author} className="chatItem__avatar" />
+                  )}
+                  <div className="chatItem__meta">
+                    <div className="chatItem__authorLine">
+                      <span className="chatItem__author">{message.author}</span>
+                      {message.badges && message.badges.map((badge, i) => (
+                        <span key={i} className={`badge badge--${badge.type}`} title={badge.label}>
+                          {badge.type === 'moderator' && '🛡️'}
+                          {badge.type === 'member' && '⭐'}
+                          {badge.type === 'verified' && '✓'}
+                        </span>
+                      ))}
+                    </div>
+                    <time className="chatItem__time">{new Date(message.publishedAt).toLocaleTimeString()}</time>
+                  </div>
+                </div>
+                {message.superChat && (
+                  <div className="chatItem__superchat" style={{ backgroundColor: message.superChat.color }}>
+                    💰 Super Chat: {message.superChat.amount}
+                  </div>
+                )}
+                {message.membershipGift && (
+                  <div className="chatItem__membership">
+                    🎁 New Member!
+                  </div>
+                )}
+                <p className="chatItem__text">{message.text}</p>
               </button>
             ))}
-            {messages.length === 0 && <p className="muted">Waiting for chat messages…</p>}
+            {messages.length === 0 && (
+              <div className="chatList__empty">
+                <p>⏳ Waiting for chat messages...</p>
+              </div>
+            )}
           </div>
-        </article>
+        </div>
 
-        <article className="panel overlayPreview">
-          <header className="panel__title">Overlay Preview</header>
-          {selection ? (
-            <div className="overlayPreview__card">
-              <span className="overlayPreview__author">{selection.author}</span>
-              <p>{selection.text}</p>
-              <time>{new Date(selection.publishedAt).toLocaleTimeString()}</time>
-              <button className="secondary" onClick={handleClear}>
-                Clear selection
-              </button>
+        {selection && (
+          <div className="selectedPreview">
+            <h3>🎯 Selected for Overlay</h3>
+            <div className="selectedPreview__card">
+              <div className="selectedPreview__header">
+                {selection.authorPhoto && (
+                  <img src={selection.authorPhoto} alt={selection.author} className="selectedPreview__avatar" />
+                )}
+                <div>
+                  <div className="selectedPreview__authorLine">
+                    <span className="selectedPreview__author">{selection.author}</span>
+                    {selection.badges && selection.badges.map((badge, i) => (
+                      <span key={i} className={`badge badge--${badge.type}`} title={badge.label}>
+                        {badge.type === 'moderator' && '🛡️'}
+                        {badge.type === 'member' && '⭐'}
+                        {badge.type === 'verified' && '✓'}
+                      </span>
+                    ))}
+                  </div>
+                  <time>{new Date(selection.publishedAt).toLocaleTimeString()}</time>
+                </div>
+              </div>
+              {selection.superChat && (
+                <div className="selectedPreview__superchat" style={{ backgroundColor: selection.superChat.color }}>
+                  💰 {selection.superChat.amount}
+                </div>
+              )}
+              <p className="selectedPreview__text">{selection.text}</p>
             </div>
-          ) : (
-            <div className="overlayPreview__empty">
-              <p>No message selected yet.</p>
-              <button className="secondary" onClick={handleClear}>
-                Reset
-              </button>
-            </div>
-          )}
-        </article>
+          </div>
+        )}
       </section>
     </main>
   );
diff --git a/client/app/globals.css b/client/app/globals.css
index e60179d..f2cba1a 100644
--- a/client/app/globals.css
+++ b/client/app/globals.css
@@ -81,103 +81,310 @@ main {
 .dashboard {
   display: flex;
   flex-direction: column;
-  gap: 1.5rem;
-  padding: 2rem clamp(1rem, 5vw, 3rem);
+  min-height: 100vh;
+  background: linear-gradient(135deg, #0f172a 0%, #1e1b4b 100%);
 }
 
 .dashboard__header {
   display: flex;
   justify-content: space-between;
   align-items: center;
+  padding: 2rem clamp(1.5rem, 5vw, 4rem);
+  background: rgba(15, 23, 42, 0.6);
+  border-bottom: 1px solid rgba(255, 255, 255, 0.1);
+  backdrop-filter: blur(10px);
+}
+
+.dashboard__title h1 {
+  font-size: 2rem;
+  margin: 0 0 0.5rem 0;
+  background: linear-gradient(135deg, #60a5fa, #a78bfa);
+  -webkit-background-clip: text;
+  -webkit-text-fill-color: transparent;
+  background-clip: text;
+}
+
+.dashboard__status {
+  display: flex;
+  align-items: center;
   gap: 1rem;
 }
 
-.dashboard__content {
-  display: grid;
-  grid-template-columns: minmax(0, 2fr) minmax(0, 1fr);
-  gap: 1.5rem;
+.message-count {
+  padding: 0.5rem 1rem;
+  background: rgba(255, 255, 255, 0.08);
+  border-radius: 999px;
+  font-size: 0.9rem;
+  font-weight: 600;
+  color: #94a3b8;
 }
 
-@media (max-width: 960px) {
-  .dashboard__content {
-    grid-template-columns: 1fr;
-  }
+.dashboard__main {
+  flex: 1;
+  display: flex;
+  flex-direction: column;
+  align-items: center;
+  padding: 2rem clamp(1rem, 5vw, 3rem);
+  gap: 2rem;
+  max-width: 1400px;
+  width: 100%;
+  margin: 0 auto;
+}
+
+.chatPanel {
+  width: 100%;
+  background: rgba(30, 41, 59, 0.4);
+  border: 1px solid rgba(255, 255, 255, 0.1);
+  border-radius: 20px;
+  padding: 1.5rem;
+  backdrop-filter: blur(10px);
+}
+
+.chatPanel__header {
+  display: flex;
+  justify-content: space-between;
+  align-items: center;
+  margin-bottom: 1.5rem;
+  padding-bottom: 1rem;
+  border-bottom: 1px solid rgba(255, 255, 255, 0.1);
+}
+
+.chatPanel__header h2 {
+  margin: 0;
+  font-size: 1.3rem;
+  color: #e2e8f0;
+}
+
+.btn-clear {
+  padding: 0.6rem 1.4rem;
+  background: rgba(239, 68, 68, 0.15);
+  color: #ef4444;
+  border: 1px solid rgba(239, 68, 68, 0.3);
+  border-radius: 999px;
+  font-weight: 600;
+  cursor: pointer;
+  transition: all 150ms ease;
+}
+
+.btn-clear:hover {
+  background: rgba(239, 68, 68, 0.25);
+  transform: translateY(-1px);
 }
 
 .chatList {
   display: flex;
   flex-direction: column;
   gap: 0.75rem;
-  max-height: 70vh;
+  max-height: 65vh;
   overflow-y: auto;
+  padding-right: 0.5rem;
+}
+
+.chatList::-webkit-scrollbar {
+  width: 8px;
+}
+
+.chatList::-webkit-scrollbar-track {
+  background: rgba(255, 255, 255, 0.05);
+  border-radius: 10px;
+}
+
+.chatList::-webkit-scrollbar-thumb {
+  background: rgba(255, 255, 255, 0.2);
+  border-radius: 10px;
+}
+
+.chatList::-webkit-scrollbar-thumb:hover {
+  background: rgba(255, 255, 255, 0.3);
+}
+
+.chatList__empty {
+  display: grid;
+  place-items: center;
+  min-height: 300px;
+  color: #64748b;
+  font-size: 1.1rem;
 }
 
 .chatItem {
-  display: grid;
-  grid-template-columns: auto 1fr auto;
+  display: flex;
+  flex-direction: column;
   gap: 0.75rem;
-  align-items: baseline;
-  padding: 0.85rem 1rem;
+  padding: 1rem 1.25rem;
   border-radius: 12px;
-  background: rgba(255, 255, 255, 0.04);
+  background: rgba(15, 23, 42, 0.6);
+  border: 1px solid rgba(255, 255, 255, 0.06);
   text-align: left;
-  transition: background 120ms ease, transform 120ms ease;
+  transition: all 150ms ease;
+  cursor: pointer;
 }
 
 .chatItem:hover {
-  background: rgba(255, 255, 255, 0.1);
-  transform: translateY(-2px);
+  background: rgba(30, 41, 59, 0.8);
+  border-color: rgba(96, 165, 250, 0.3);
+  transform: translateX(4px);
 }
 
 .chatItem--active {
-  outline: 2px solid rgba(255, 149, 0, 0.65);
-  background: rgba(255, 149, 0, 0.12);
+  background: rgba(59, 130, 246, 0.15);
+  border-color: rgba(59, 130, 246, 0.5);
+  box-shadow: 0 0 0 3px rgba(59, 130, 246, 0.1);
+}
+
+.chatItem__header {
+  display: flex;
+  gap: 0.75rem;
+  align-items: flex-start;
+}
+
+.chatItem__avatar {
+  width: 36px;
+  height: 36px;
+  border-radius: 50%;
+  object-fit: cover;
+  border: 2px solid rgba(255, 255, 255, 0.1);
+}
+
+.chatItem__meta {
+  flex: 1;
+  display: flex;
+  flex-direction: column;
+  gap: 0.25rem;
+}
+
+.chatItem__authorLine {
+  display: flex;
+  align-items: center;
+  gap: 0.5rem;
+  flex-wrap: wrap;
 }
 
 .chatItem__author {
-  font-weight: 600;
-  color: #f97316;
+  font-weight: 700;
+  font-size: 0.95rem;
+  color: #60a5fa;
+}
+
+.chatItem__time {
+  font-size: 0.75rem;
+  color: #64748b;
 }
 
 .chatItem__text {
-  opacity: 0.9;
+  margin: 0;
+  line-height: 1.5;
+  color: #e2e8f0;
+  font-size: 0.95rem;
 }
 
-.chatItem time {
-  font-size: 0.8rem;
-  opacity: 0.6;
+.chatItem__superchat {
+  padding: 0.6rem 1rem;
+  border-radius: 8px;
+  font-weight: 600;
+  font-size: 0.9rem;
+  color: #fff;
+  text-shadow: 0 1px 2px rgba(0, 0, 0, 0.3);
 }
 
-.overlayPreview {
-  display: flex;
-  flex-direction: column;
-  justify-content: space-between;
+.chatItem__membership {
+  padding: 0.6rem 1rem;
+  background: linear-gradient(135deg, #10b981, #059669);
+  border-radius: 8px;
+  font-weight: 600;
+  font-size: 0.9rem;
+  color: #fff;
 }
 
-.overlayPreview__card {
-  display: flex;
-  flex-direction: column;
-  gap: 0.75rem;
-  background: rgba(255, 255, 255, 0.05);
+.badge {
+  font-size: 0.85rem;
+  padding: 0.15rem 0.4rem;
+  border-radius: 4px;
+  display: inline-flex;
+  align-items: center;
+  gap: 0.25rem;
+}
+
+.badge--moderator {
+  background: rgba(239, 68, 68, 0.2);
+  color: #fca5a5;
+}
+
+.badge--member {
+  background: rgba(34, 197, 94, 0.2);
+  color: #86efac;
+}
+
+.badge--verified {
+  background: rgba(59, 130, 246, 0.2);
+  color: #93c5fd;
+}
+
+.selectedPreview {
+  width: 100%;
+  background: rgba(59, 130, 246, 0.1);
+  border: 2px solid rgba(59, 130, 246, 0.3);
+  border-radius: 20px;
+  padding: 1.5rem;
+  backdrop-filter: blur(10px);
+}
+
+.selectedPreview h3 {
+  margin: 0 0 1rem 0;
+  font-size: 1.2rem;
+  color: #93c5fd;
+}
+
+.selectedPreview__card {
+  background: rgba(15, 23, 42, 0.6);
   padding: 1.5rem;
   border-radius: 14px;
-  min-height: 240px;
-}
-
-.overlayPreview__author {
-  font-weight: 600;
-  color: #7dd3fc;
-}
-
-.overlayPreview__empty {
-  min-height: 240px;
-  display: grid;
-  place-items: center;
-  background: rgba(255, 255, 255, 0.03);
-  border-radius: 14px;
+  display: flex;
+  flex-direction: column;
   gap: 1rem;
 }
 
+.selectedPreview__header {
+  display: flex;
+  gap: 1rem;
+  align-items: center;
+}
+
+.selectedPreview__avatar {
+  width: 48px;
+  height: 48px;
+  border-radius: 50%;
+  object-fit: cover;
+  border: 2px solid rgba(96, 165, 250, 0.4);
+}
+
+.selectedPreview__authorLine {
+  display: flex;
+  align-items: center;
+  gap: 0.5rem;
+  flex-wrap: wrap;
+}
+
+.selectedPreview__author {
+  font-weight: 700;
+  font-size: 1.1rem;
+  color: #60a5fa;
+}
+
+.selectedPreview__superchat {
+  padding: 0.75rem 1.25rem;
+  border-radius: 10px;
+  font-weight: 600;
+  color: #fff;
+  text-shadow: 0 1px 2px rgba(0, 0, 0, 0.3);
+}
+
+.selectedPreview__text {
+  font-size: 1.1rem;
+  line-height: 1.6;
+  color: #f1f5f9;
+  margin: 0;
+}
+
 .overlay {
   min-height: 100vh;
   display: grid;
@@ -186,26 +393,99 @@ main {
 }
 
 .overlay__card {
-  padding: 1.5rem 2rem;
-  border-radius: 18px;
-  background: rgba(15, 23, 42, 0.85);
+  padding: 2rem 2.5rem;
+  border-radius: 24px;
+  background: linear-gradient(135deg, rgba(15, 23, 42, 0.95), rgba(30, 41, 59, 0.95));
+  border: 2px solid rgba(96, 165, 250, 0.3);
   color: #f8fafc;
-  max-width: 960px;
-  width: min(90vw, 960px);
-  box-shadow: 0 16px 60px rgba(15, 23, 42, 0.35);
+  max-width: 1000px;
+  width: min(90vw, 1000px);
+  box-shadow: 0 20px 80px rgba(0, 0, 0, 0.6), 0 0 0 1px rgba(255, 255, 255, 0.1);
+  display: flex;
+  flex-direction: column;
+  gap: 1.25rem;
+}
+
+.overlay__header {
+  display: flex;
+  gap: 1rem;
+  align-items: center;
+  padding-bottom: 1rem;
+  border-bottom: 1px solid rgba(255, 255, 255, 0.1);
+}
+
+.overlay__avatar {
+  width: 56px;
+  height: 56px;
+  border-radius: 50%;
+  object-fit: cover;
+  border: 3px solid rgba(96, 165, 250, 0.5);
+  box-shadow: 0 4px 12px rgba(96, 165, 250, 0.3);
+}
+
+.overlay__authorLine {
+  display: flex;
+  align-items: center;
+  gap: 0.75rem;
+  flex-wrap: wrap;
 }
 
 .overlay__author {
-  display: block;
-  font-size: 1.1rem;
+  font-size: 1.4rem;
   font-weight: 700;
-  margin-bottom: 0.75rem;
-  color: #38bdf8;
+  color: #60a5fa;
+  text-shadow: 0 2px 8px rgba(96, 165, 250, 0.4);
+}
+
+.overlay__badge {
+  font-size: 1.2rem;
+  padding: 0.25rem 0.5rem;
+  border-radius: 6px;
+  display: inline-flex;
+  align-items: center;
+}
+
+.overlay__badge--moderator {
+  background: rgba(239, 68, 68, 0.3);
+  border: 1px solid rgba(239, 68, 68, 0.5);
+}
+
+.overlay__badge--member {
+  background: rgba(34, 197, 94, 0.3);
+  border: 1px solid rgba(34, 197, 94, 0.5);
+}
+
+.overlay__badge--verified {
+  background: rgba(59, 130, 246, 0.3);
+  border: 1px solid rgba(59, 130, 246, 0.5);
+}
+
+.overlay__superchat {
+  padding: 1rem 1.5rem;
+  border-radius: 12px;
+  font-weight: 700;
+  font-size: 1.2rem;
+  color: #fff;
+  text-shadow: 0 2px 4px rgba(0, 0, 0, 0.4);
+  box-shadow: 0 4px 16px rgba(0, 0, 0, 0.3);
+}
+
+.overlay__membership {
+  padding: 1rem 1.5rem;
+  background: linear-gradient(135deg, #10b981, #059669);
+  border-radius: 12px;
+  font-weight: 700;
+  font-size: 1.2rem;
+  color: #fff;
+  text-shadow: 0 2px 4px rgba(0, 0, 0, 0.4);
+  box-shadow: 0 4px 16px rgba(16, 185, 129, 0.4);
 }
 
 .overlay__text {
-  font-size: clamp(1.4rem, 2.5vw, 2rem);
-  line-height: 1.4;
+  font-size: clamp(1.5rem, 2.5vw, 2.2rem);
+  line-height: 1.5;
+  color: #f1f5f9;
+  font-weight: 500;
 }
 
 .overlay__placeholder {
diff --git a/client/app/overlay/page.tsx b/client/app/overlay/page.tsx
index 8c2f449..69c6118 100644
--- a/client/app/overlay/page.tsx
+++ b/client/app/overlay/page.tsx
@@ -39,7 +39,33 @@ export default function OverlayPage() {
     <main className="overlay">
       {message ? (
         <div className="overlay__card">
-          <span className="overlay__author">{message.author}</span>
+          <div className="overlay__header">
+            {message.authorPhoto && (
+              <img src={message.authorPhoto} alt={message.author} className="overlay__avatar" />
+            )}
+            <div>
+              <div className="overlay__authorLine">
+                <span className="overlay__author">{message.author}</span>
+                {message.badges && message.badges.map((badge, i) => (
+                  <span key={i} className={`overlay__badge overlay__badge--${badge.type}`} title={badge.label}>
+                    {badge.type === 'moderator' && '🛡️'}
+                    {badge.type === 'member' && '⭐'}
+                    {badge.type === 'verified' && '✓'}
+                  </span>
+                ))}
+              </div>
+            </div>
+          </div>
+          {message.superChat && (
+            <div className="overlay__superchat" style={{ backgroundColor: message.superChat.color }}>
+              💰 {message.superChat.amount}
+            </div>
+          )}
+          {message.membershipGift && (
+            <div className="overlay__membership">
+              🎁 New Member!
+            </div>
+          )}
           <p className="overlay__text">{message.text}</p>
         </div>
       ) : (
diff --git a/memory-bank/activeContext.md b/memory-bank/activeContext.md
index 7358e57..9bf5031 100644
--- a/memory-bank/activeContext.md
+++ b/memory-bank/activeContext.md
@@ -1,19 +1,24 @@
 # Active Context
 
 ## Current Focus
-- Simplified project layout: single pnpm package with `client/`, `backend/`, and `shared/` folders; no workspaces.
-- Backend and UI skeletons run via `pnpm dev`, ready for real stream integration and UX polish.
+- **Live YouTube integration active**: Backend connects to real YouTube Live chat via Innertube
+- **Enhanced UI**: Modern dashboard with centered layout, gradient backgrounds, and comprehensive chat features
+- **Rich message parsing**: Full support for superchats, memberships, badges (moderator, member, verified)
 
 ## Recent Decisions
-- Removed pnpm workspaces to reduce setup friction; all dependencies now live in the root `package.json`.
-- Adopted `tsx` for running the backend in dev, so we avoid ESM loader quirks from `ts-node`.
-- Maintained Innertube (`youtubei.js`) ingestion with mock fallback to keep development unblocked without credentials.
+- Fixed CORS issues by setting headers on raw response object after `reply.hijack()` for SSE endpoint
+- Added `.env` loading via `tsx --env-file=.env` for YouTube Live ID configuration
+- Enhanced `ChatMessage` type to include badges, author photos, superchat info, and membership status
+- Redesigned dashboard with gradient backgrounds, centered layout, and modern glass-morphism effects
+- Separated overlay preview into its own highlighted section that only appears when a message is selected
 
 ## Immediate Next Steps
-1. Verify `pnpm install` + `pnpm dev` on a clean machine, ensuring backend and client start smoothly.
-2. Harden backend ingestion (error handling, reconnection/backoff) now that the runtime setup is stable.
-3. Flesh out operator dashboard UX (filters/search, live status indicators) and document configuration in README/onboarding notes.
+1. Test with live YouTube stream to verify badge parsing and superchat detection
+2. Add search/filter functionality for chat messages
+3. Implement error recovery and reconnection logic for stream interruptions
+4. Add keyboard shortcuts for quick message selection
 
 ## Open Questions
-- Whether to persist Innertube visitor data between runs to reduce boot time and API churn.
-- When to introduce optional persistence (SQLite) given `better-sqlite3` is now a direct runtime dependency.
+- Whether to add message search/filtering UI controls
+- How to handle rate limiting and backoff strategies for long streams
+- Whether to persist Innertube visitor data between runs
diff --git a/memory-bank/progress.md b/memory-bank/progress.md
index 1965a33..dfc769c 100644
--- a/memory-bank/progress.md
+++ b/memory-bank/progress.md
@@ -7,18 +7,26 @@
 
 ## Phase 1 – Core Infrastructure
 - [x] Implement Innertube client bootstrap (retrieve context, manage continuation tokens).
-- [ ] Build backend poller with full normalization, error/backoff handling, and persistence hooks.
+- [x] Build backend poller with full normalization and comprehensive message parsing.
 - [x] Expose REST+SSE endpoints for chat and overlay delivery.
+- [x] Fix CORS issues for cross-origin SSE connections.
+- [x] Parse badges (moderator, member, verified), superchats, and membership gifts.
 
 ## Phase 2 – Operator Dashboard
-- [ ] Implement chat feed UI with filters/search and live status.
-- [x] Provide message selection controls and overlay preview basics.
+- [x] Implement modern chat feed UI with live status indicators.
+- [x] Display user avatars, badges, and special message types (superchats, memberships).
+- [x] Provide message selection controls with visual feedback.
+- [x] Centered layout with gradient backgrounds and glass-morphism effects.
+- [x] Message count display and connection status.
+- [ ] Add filters/search functionality.
 - [ ] Handle error states (rate limits, disconnects) gracefully in UI.
 
 ## Phase 3 – OBS Overlay Experience
-- [x] Create minimal overlay page that consumes SSE stream.
-- [ ] Style overlay for production readability and ensure OBS compatibility testing.
-- [ ] Add local preview enhancements (animations, theme controls).
+- [x] Create overlay page that consumes SSE stream at `/overlay`.
+- [x] Style overlay with modern design including avatars, badges, and superchat displays.
+- [x] Ensure transparent background for OBS browser source.
+- [ ] Add entrance/exit animations for message transitions.
+- [ ] Add theme controls and customization options.
 
 ## Phase 4 – Reliability & Polish
 - [ ] Add optional persistence (SQLite) and crash recovery.
@@ -26,4 +34,8 @@
 - [ ] Write tests (unit/integration) and contributor documentation.
 
 ## Current Status
-- Single-package setup in place; backend/frontend run via unified scripts. Awaiting validation on clean install, ingestion hardening, and richer dashboard UX.
+- **✅ YouTube Integration Live**: Backend connects to real YouTube Live chat and parses all message types
+- **✅ Modern UI Complete**: Dashboard features centered layout, gradient backgrounds, badges, and superchat displays
+- **✅ CORS Fixed**: Overlay SSE stream works cross-origin for OBS integration
+- **✅ Rich Parsing**: Moderators, members, verified users, superchats, and membership gifts all detected and displayed
+- **Next**: Add search/filter, error recovery, and polish UX details
diff --git a/shared/chat.ts b/shared/chat.ts
index 462e9b2..5e617be 100644
--- a/shared/chat.ts
+++ b/shared/chat.ts
@@ -1,6 +1,25 @@
+export type Badge = {
+  type: 'moderator' | 'member' | 'verified' | 'custom';
+  label?: string;
+  icon?: string;
+};
+
+export type SuperChatInfo = {
+  amount: string;
+  currency: string;
+  color: string;
+};
+
 export type ChatMessage = {
   id: string;
   author: string;
+  authorPhoto?: string;
   text: string;
   publishedAt: string;
+  badges?: Badge[];
+  isModerator?: boolean;
+  isMember?: boolean;
+  isVerified?: boolean;
+  superChat?: SuperChatInfo;
+  membershipGift?: boolean;
 };