diff --git a/apps/client/app/globals.css b/apps/client/app/globals.css
deleted file mode 100644
index ae2b4fb..0000000
--- a/apps/client/app/globals.css
+++ /dev/null
@@ -1,10 +0,0 @@
-:root {
-  color-scheme: dark light;
-}
-
-body {
-  margin: 0;
-  font-family: system-ui, sans-serif;
-  background: #0f0f0f;
-  color: #f5f5f5;
-}
diff --git a/apps/client/app/page.tsx b/apps/client/app/page.tsx
deleted file mode 100644
index 41b76a1..0000000
--- a/apps/client/app/page.tsx
+++ /dev/null
@@ -1,8 +0,0 @@
-export default function HomePage() {
-  return (
-    <main>
-      <h1>youtube-client</h1>
-      <p>Operator dashboard under construction.</p>
-    </main>
-  );
-}
diff --git a/apps/client/next-env.d.ts b/apps/client/next-env.d.ts
deleted file mode 100644
index c6643fd..0000000
--- a/apps/client/next-env.d.ts
+++ /dev/null
@@ -1,3 +0,0 @@
-/// <reference types="next" />
-/// <reference types="next/types/global" />
-/// <reference types="next/image-types/global" />
diff --git a/apps/client/package.json b/apps/client/package.json
deleted file mode 100644
index 6c62110..0000000
--- a/apps/client/package.json
+++ /dev/null
@@ -1,12 +0,0 @@
-{
-  "name": "client",
-  "version": "0.1.0",
-  "private": true,
-  "description": "Operator dashboard and overlay UI.",
-  "scripts": {
-    "dev": "next dev",
-    "build": "next build",
-    "start": "next start",
-    "lint": "next lint"
-  }
-}
diff --git a/apps/client/tsconfig.json b/apps/client/tsconfig.json
deleted file mode 100644
index dbb5dad..0000000
--- a/apps/client/tsconfig.json
+++ /dev/null
@@ -1,16 +0,0 @@
-{
-  "extends": "../../tsconfig.base.json",
-  "compilerOptions": {
-    "jsx": "preserve",
-    "types": ["next", "next/types/global", "next/image-types/global"],
-    "lib": ["dom", "dom.iterable", "esnext"],
-    "allowJs": true,
-    "noEmit": true
-  },
-  "include": [
-    "next-env.d.ts",
-    "**/*.ts",
-    "**/*.tsx"
-  ],
-  "exclude": ["node_modules", "dist"]
-}
diff --git a/backend/src/index.ts b/backend/src/index.ts
new file mode 100644
index 0000000..7609078
--- /dev/null
+++ b/backend/src/index.ts
@@ -0,0 +1,187 @@
+import Fastify from 'fastify';
+import cors from '@fastify/cors';
+import EventEmitter from 'eventemitter3';
+import type { ChatMessage } from '@shared/chat';
+import { bootstrapInnertube, type IngestionContext } from './ingestion/youtubei';
+
+const MAX_MESSAGES = 500;
+
+export async function startBackend() {
+  const fastify = Fastify({
+    logger: true
+  });
+
+  await fastify.register(cors, { origin: true });
+
+  const store: ChatMessage[] = [];
+  let currentSelection: ChatMessage | null = null;
+  const overlayEmitter = new EventEmitter<{ update: (message: ChatMessage | null) => void }>();
+
+  const rawLiveId = process.env.YOUTUBE_LIVE_ID ?? '';
+  const parsedLiveId = extractLiveId(rawLiveId);
+  const shouldMock = !parsedLiveId;
+
+  let ingestion: IngestionContext | null = null;
+
+  if (!shouldMock) {
+    try {
+      console.log(`[Backend] Connecting to YouTube Live ID: ${parsedLiveId}`);
+      ingestion = await bootstrapInnertube(parsedLiveId);
+      console.log(`[Backend] ✓ YouTube chat connected successfully`);
+      ingestion.emitter.on('message', (message) => {
+        console.log(`[Chat] ${message.author}: ${message.text}`);
+        store.push(message);
+        if (store.length > MAX_MESSAGES) {
+          store.splice(0, store.length - MAX_MESSAGES);
+        }
+      });
+      ingestion.emitter.on('error', (error) => {
+        console.error('[Backend] Innertube ingestion error:', error);
+      });
+    } catch (error) {
+      console.error('[Backend] Failed to bootstrap Innertube; falling back to mock data:', error);
+    }
+  } else {
+    console.log('[Backend] No YOUTUBE_LIVE_ID found, running in mock mode');
+  }
+
+  if (!ingestion) {
+    seedMockMessages(store, overlayEmitter);
+  }
+
+  fastify.get('/health', async () => ({
+    status: 'ok',
+    messages: store.length,
+    selection: currentSelection?.id ?? null,
+    mode: ingestion ? 'live' : 'mock'
+  }));
+
+  fastify.get('/chat/messages', async () => ({
+    messages: store
+  }));
+
+  fastify.post<{ Body: { id?: string } }>('/overlay/selection', async (request, reply) => {
+    const { id } = request.body ?? {};
+    if (!id) {
+      reply.status(400);
+      return { error: 'id is required' };
+    }
+
+    const message = store.find((item) => item.id === id);
+    if (!message) {
+      reply.status(404);
+      return { error: 'message not found' };
+    }
+
+    currentSelection = message;
+    overlayEmitter.emit('update', currentSelection);
+
+    return { ok: true };
+  });
+
+  fastify.delete('/overlay/selection', async () => {
+    currentSelection = null;
+    overlayEmitter.emit('update', null);
+    return { ok: true };
+  });
+
+  fastify.options('/overlay/stream', async (request, reply) => {
+    reply.headers({
+      'Access-Control-Allow-Origin': '*',
+      'Access-Control-Allow-Methods': 'GET, OPTIONS',
+      'Access-Control-Allow-Headers': 'Content-Type'
+    });
+    reply.status(204).send();
+  });
+
+  fastify.get('/overlay/stream', async (request, reply) => {
+    reply.hijack();
+
+    const res = reply.raw;
+    res.setHeader('Content-Type', 'text/event-stream');
+    res.setHeader('Cache-Control', 'no-cache');
+    res.setHeader('Connection', 'keep-alive');
+    res.setHeader('Access-Control-Allow-Origin', '*');
+    res.setHeader('Access-Control-Allow-Methods', 'GET, OPTIONS');
+    res.setHeader('Access-Control-Allow-Headers', 'Content-Type');
+    res.writeHead(200);
+    res.write(': connected\n\n');
+
+    const send = (message: ChatMessage | null) => {
+      res.write(`event: selection\ndata: ${JSON.stringify({ message })}\n\n`);
+    };
+
+    const heartbeat = setInterval(() => {
+      res.write('event: heartbeat\ndata: {}\n\n');
+    }, 15000);
+
+    overlayEmitter.on('update', send);
+
+    if (currentSelection) {
+      send(currentSelection);
+    }
+
+    request.raw.on('close', () => {
+      clearInterval(heartbeat);
+      overlayEmitter.off('update', send);
+    });
+  });
+
+  const port = Number(process.env.PORT ?? 4100);
+
+  await fastify.listen({ port, host: '0.0.0.0' });
+
+  console.log(`[Backend] Server listening on http://localhost:${port}`);
+}
+
+function extractLiveId(input: string): string {
+  if (!input) return '';
+
+  const trimmed = input.trim();
+  if (/^[a-zA-Z0-9_-]{10,}$/.test(trimmed)) {
+    return trimmed;
+  }
+
+  try {
+    const url = new URL(trimmed);
+    if (url.searchParams.has('v')) {
+      return url.searchParams.get('v') ?? '';
+    }
+    const pathname = url.pathname.split('/').filter(Boolean).pop();
+    return pathname ?? '';
+  } catch (error) {
+    console.warn('Invalid YOUTUBE_LIVE_ID provided', error);
+    return '';
+  }
+}
+
+function seedMockMessages(
+  store: ChatMessage[],
+  overlayEmitter: EventEmitter<{ update: (message: ChatMessage | null) => void }>
+) {
+  let counter = 0;
+  const authors = ['Ada', 'Linus', 'Grace', 'Marge'];
+  setInterval(() => {
+    const message: ChatMessage = {
+      id: `mock-${Date.now()}`,
+      author: authors[counter % authors.length],
+      text: `Mock message #${counter}`,
+      publishedAt: new Date().toISOString()
+    };
+    store.push(message);
+    if (store.length > MAX_MESSAGES) {
+      store.splice(0, store.length - MAX_MESSAGES);
+    }
+    if (counter % 5 === 0) {
+      overlayEmitter.emit('update', message);
+    }
+    counter += 1;
+  }, 2000);
+}
+
+if (import.meta.url === `file://${process.argv[1]}`) {
+  startBackend().catch((error) => {
+    console.error('Failed to start backend', error);
+    process.exit(1);
+  });
+}
diff --git a/backend/src/ingestion/youtubei.ts b/backend/src/ingestion/youtubei.ts
new file mode 100644
index 0000000..ae95a6b
--- /dev/null
+++ b/backend/src/ingestion/youtubei.ts
@@ -0,0 +1,153 @@
+import type { ChatMessage } from '@shared/chat';
+import EventEmitter from 'eventemitter3';
+import Innertube, { UniversalCache } from 'youtubei.js';
+
+export type IngestionContext = {
+  client: Innertube;
+  liveChat: any;
+  videoId: string;
+  emitter: ChatEventEmitter;
+};
+
+export type ContinuationState = {
+  messages: ChatMessage[];
+  nextToken: string | null;
+  timeoutMs: number;
+};
+
+export type ChatEventEmitter = EventEmitter<{
+  message: (message: ChatMessage) => void;
+  error: (error: unknown) => void;
+}>;
+
+const defaultTimeout = 1500;
+
+export async function bootstrapInnertube(videoId: string): Promise<IngestionContext> {
+  if (!videoId) {
+    throw new Error('YOUTUBE_LIVE_ID is required to bootstrap Innertube');
+  }
+
+  console.log('[Ingestion] Creating Innertube client...');
+  const client = await Innertube.create({
+    cache: new UniversalCache(false)
+  });
+
+  console.log('[Ingestion] Fetching video info...');
+  const info = await client.getInfo(videoId);
+  
+  console.log('[Ingestion] Getting live chat...');
+  const liveChat = info.getLiveChat();
+
+  if (!liveChat) {
+    throw new Error('This video does not have an active live chat');
+  }
+
+  const emitter: ChatEventEmitter = new EventEmitter();
+
+  liveChat.on('chat-update', (action: any) => {
+    const normalized = normalizeAction(action);
+    if (normalized) {
+      emitter.emit('message', normalized);
+    }
+  });
+
+  liveChat.on('error', (err: unknown) => {
+    console.error('[Ingestion] Live chat error:', err);
+    emitter.emit('error', err);
+  });
+
+  console.log('[Ingestion] Starting live chat listener...');
+  liveChat.start();
+  console.log('[Ingestion] Live chat listener started');
+
+  return {
+    client,
+    liveChat,
+    videoId,
+    emitter
+  };
+}
+
+export async function fetchChatBatch(
+  ctx: IngestionContext,
+  options?: { windowMs?: number }
+): Promise<ContinuationState> {
+  const windowMs = options?.windowMs ?? defaultTimeout;
+  const collected: ChatMessage[] = [];
+
+  const listener = (message: ChatMessage) => {
+    collected.push(message);
+  };
+
+  ctx.emitter.on('message', listener);
+
+  await delay(windowMs);
+
+  ctx.emitter.off('message', listener);
+
+  return {
+    messages: collected,
+    nextToken: ctx.liveChat?.continuation?.token ?? null,
+    timeoutMs: ctx.liveChat?.continuation?.timeout_ms ?? defaultTimeout
+  };
+}
+
+function resolveMessageText(item: any): string {
+  if (!item?.message) return '';
+
+  if (typeof item.message === 'string') {
+    return item.message;
+  }
+
+  if (typeof item.message?.toString === 'function') {
+    return item.message.toString();
+  }
+
+  if (Array.isArray(item.message?.runs)) {
+    return item.message.runs.map((run: any) => run.text ?? '').join('');
+  }
+
+  return '';
+}
+
+function resolveTimestamp(timestamp: number | string | undefined): string {
+  if (!timestamp) {
+    return new Date().toISOString();
+  }
+
+  const numeric = typeof timestamp === 'string' ? Number(timestamp) : timestamp;
+  if (Number.isFinite(numeric)) {
+    const millis = numeric > 1e12 ? numeric / 1000 : numeric;
+    return new Date(millis).toISOString();
+  }
+
+  return new Date().toISOString();
+}
+
+function normalizeAction(action: any): ChatMessage | null {
+  if (!action || action.type !== 'AddChatItemAction') {
+    return null;
+  }
+
+  const item = action.item;
+  if (!item) return null;
+
+  if (
+    item.type === 'LiveChatTextMessage' ||
+    item.type === 'LiveChatPaidMessage' ||
+    item.type === 'LiveChatMembershipItem'
+  ) {
+    return {
+      id: String(item.id ?? item.timestamp_usec ?? Date.now()),
+      author: String(item.author?.name ?? 'Unknown'),
+      text: resolveMessageText(item),
+      publishedAt: resolveTimestamp(item.timestamp ?? item.timestamp_usec)
+    };
+  }
+
+  return null;
+}
+
+function delay(ms: number) {
+  return new Promise((resolve) => setTimeout(resolve, ms));
+}
diff --git a/packages/backend/tsconfig.build.json b/backend/tsconfig.build.json
similarity index 100%
rename from packages/backend/tsconfig.build.json
rename to backend/tsconfig.build.json
diff --git a/backend/tsconfig.json b/backend/tsconfig.json
new file mode 100644
index 0000000..345d424
--- /dev/null
+++ b/backend/tsconfig.json
@@ -0,0 +1,12 @@
+{
+  "extends": "../tsconfig.base.json",
+  "compilerOptions": {
+    "outDir": "dist",
+    "module": "NodeNext",
+    "moduleResolution": "NodeNext",
+    "target": "ES2022",
+    "noEmit": false,
+    "allowSyntheticDefaultImports": true
+  },
+  "include": ["src"]
+}
diff --git a/client/app/dashboard/page.tsx b/client/app/dashboard/page.tsx
new file mode 100644
index 0000000..7bda191
--- /dev/null
+++ b/client/app/dashboard/page.tsx
@@ -0,0 +1,164 @@
+'use client';
+
+import { useCallback, useEffect, useMemo, useState } from 'react';
+import type { ChatMessage } from '@shared/chat';
+
+const BACKEND_URL = process.env.NEXT_PUBLIC_BACKEND_URL ?? 'http://localhost:4100';
+const POLL_INTERVAL = 2500;
+
+export default function DashboardPage() {
+  const { messages, refresh, error: pollError } = useChatMessages();
+  const { selection, status: overlayStatus } = useOverlaySelection();
+
+  const handleSelect = useCallback(
+    async (message: ChatMessage) => {
+      try {
+        await fetch(`${BACKEND_URL}/overlay/selection`, {
+          method: 'POST',
+          headers: { 'Content-Type': 'application/json' },
+          body: JSON.stringify({ id: message.id })
+        });
+      } catch (error) {
+        console.error('Failed to select message', error);
+      }
+    },
+    []
+  );
+
+  const handleClear = useCallback(async () => {
+    try {
+      await fetch(`${BACKEND_URL}/overlay/selection`, { method: 'DELETE' });
+    } catch (error) {
+      console.error('Failed to clear selection', error);
+    }
+  }, []);
+
+  useEffect(() => {
+    const timer = setInterval(() => {
+      refresh();
+    }, POLL_INTERVAL);
+
+    return () => clearInterval(timer);
+  }, [refresh]);
+
+  const statusHint = useMemo(() => {
+    if (pollError) return 'Backend unreachable';
+    if (overlayStatus === 'connecting') return 'Connecting to overlay…';
+    if (overlayStatus === 'error') return 'Overlay stream disconnected';
+    return 'Live';
+  }, [pollError, overlayStatus]);
+
+  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>
+        <span className={`status status--${overlayStatus}`}>{statusHint}</span>
+      </header>
+
+      <section className="dashboard__content">
+        <article className="panel">
+          <header className="panel__title">Live Chat</header>
+          <div className="chatList">
+            {messages.map((message) => (
+              <button
+                key={message.id}
+                className={
+                  selection?.id === message.id ? 'chatItem chatItem--active' : 'chatItem'
+                }
+                onClick={() => handleSelect(message)}
+              >
+                <span className="chatItem__author">{message.author}</span>
+                <span className="chatItem__text">{message.text}</span>
+                <time>{new Date(message.publishedAt).toLocaleTimeString()}</time>
+              </button>
+            ))}
+            {messages.length === 0 && <p className="muted">Waiting for chat messages…</p>}
+          </div>
+        </article>
+
+        <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>
+            </div>
+          ) : (
+            <div className="overlayPreview__empty">
+              <p>No message selected yet.</p>
+              <button className="secondary" onClick={handleClear}>
+                Reset
+              </button>
+            </div>
+          )}
+        </article>
+      </section>
+    </main>
+  );
+}
+
+function useChatMessages() {
+  const [messages, setMessages] = useState<ChatMessage[]>([]);
+  const [error, setError] = useState<Error | null>(null);
+
+  const refresh = useCallback(async () => {
+    try {
+      const response = await fetch(`${BACKEND_URL}/chat/messages`);
+      if (!response.ok) throw new Error(`Request failed: ${response.status}`);
+      const data = await response.json();
+      setMessages(Array.isArray(data.messages) ? data.messages : []);
+      setError(null);
+    } catch (err) {
+      setError(err as Error);
+    }
+  }, []);
+
+  useEffect(() => {
+    refresh();
+  }, [refresh]);
+
+  return { messages, refresh, error };
+}
+
+type OverlayStatus = 'connecting' | 'live' | 'error';
+
+type SelectionPayload = {
+  message: ChatMessage | null;
+};
+
+function useOverlaySelection() {
+  const [selection, setSelection] = useState<ChatMessage | null>(null);
+  const [status, setStatus] = useState<OverlayStatus>('connecting');
+
+  useEffect(() => {
+    const source = new EventSource(`${BACKEND_URL}/overlay/stream`);
+
+    const onSelection = (event: MessageEvent) => {
+      try {
+        const payload: SelectionPayload = JSON.parse(event.data);
+        setSelection(payload.message);
+        setStatus('live');
+      } catch (error) {
+        console.error('Failed to parse selection payload', error);
+      }
+    };
+
+    source.addEventListener('selection', onSelection as EventListener);
+    source.addEventListener('heartbeat', () => setStatus('live'));
+    source.onerror = () => setStatus('error');
+
+    return () => {
+      source.removeEventListener('selection', onSelection as EventListener);
+      source.close();
+    };
+  }, []);
+
+  return { selection, status };
+}
diff --git a/client/app/globals.css b/client/app/globals.css
new file mode 100644
index 0000000..e60179d
--- /dev/null
+++ b/client/app/globals.css
@@ -0,0 +1,238 @@
+:root {
+  color-scheme: dark;
+}
+
+body {
+  margin: 0;
+  font-family: 'Inter', system-ui, -apple-system, BlinkMacSystemFont, 'Segoe UI', sans-serif;
+  background: #050608;
+  color: #f4f4f5;
+  min-height: 100vh;
+}
+
+a {
+  color: inherit;
+  text-decoration: none;
+}
+
+main {
+  min-height: 100vh;
+}
+
+.landing {
+  display: grid;
+  place-items: center;
+  padding: 4rem 1.5rem;
+}
+
+.panel {
+  background: rgba(21, 23, 28, 0.85);
+  border: 1px solid rgba(255, 255, 255, 0.08);
+  border-radius: 16px;
+  padding: 2.5rem;
+  max-width: 720px;
+  width: min(100%, 720px);
+  box-shadow: 0 12px 40px rgba(0, 0, 0, 0.35);
+}
+
+.panel__title {
+  font-size: 1.1rem;
+  font-weight: 600;
+  margin-bottom: 1rem;
+}
+
+.primary,
+.secondary,
+.chatItem {
+  font: inherit;
+  border: none;
+  cursor: pointer;
+}
+
+.primary {
+  display: inline-block;
+  margin-top: 1.5rem;
+  padding: 0.85rem 1.6rem;
+  border-radius: 999px;
+  background: linear-gradient(135deg, #ff3b30, #ff9500);
+  color: #fff;
+  font-weight: 600;
+  transition: transform 120ms ease, box-shadow 120ms ease;
+}
+
+.primary:hover {
+  transform: translateY(-2px);
+  box-shadow: 0 8px 24px rgba(255, 99, 71, 0.35);
+}
+
+.secondary {
+  margin-top: 1rem;
+  padding: 0.6rem 1.2rem;
+  border-radius: 999px;
+  background: rgba(255, 255, 255, 0.08);
+  color: #f4f4f5;
+}
+
+.muted {
+  color: rgba(244, 244, 245, 0.6);
+  margin-top: 0.6rem;
+}
+
+.dashboard {
+  display: flex;
+  flex-direction: column;
+  gap: 1.5rem;
+  padding: 2rem clamp(1rem, 5vw, 3rem);
+}
+
+.dashboard__header {
+  display: flex;
+  justify-content: space-between;
+  align-items: center;
+  gap: 1rem;
+}
+
+.dashboard__content {
+  display: grid;
+  grid-template-columns: minmax(0, 2fr) minmax(0, 1fr);
+  gap: 1.5rem;
+}
+
+@media (max-width: 960px) {
+  .dashboard__content {
+    grid-template-columns: 1fr;
+  }
+}
+
+.chatList {
+  display: flex;
+  flex-direction: column;
+  gap: 0.75rem;
+  max-height: 70vh;
+  overflow-y: auto;
+}
+
+.chatItem {
+  display: grid;
+  grid-template-columns: auto 1fr auto;
+  gap: 0.75rem;
+  align-items: baseline;
+  padding: 0.85rem 1rem;
+  border-radius: 12px;
+  background: rgba(255, 255, 255, 0.04);
+  text-align: left;
+  transition: background 120ms ease, transform 120ms ease;
+}
+
+.chatItem:hover {
+  background: rgba(255, 255, 255, 0.1);
+  transform: translateY(-2px);
+}
+
+.chatItem--active {
+  outline: 2px solid rgba(255, 149, 0, 0.65);
+  background: rgba(255, 149, 0, 0.12);
+}
+
+.chatItem__author {
+  font-weight: 600;
+  color: #f97316;
+}
+
+.chatItem__text {
+  opacity: 0.9;
+}
+
+.chatItem time {
+  font-size: 0.8rem;
+  opacity: 0.6;
+}
+
+.overlayPreview {
+  display: flex;
+  flex-direction: column;
+  justify-content: space-between;
+}
+
+.overlayPreview__card {
+  display: flex;
+  flex-direction: column;
+  gap: 0.75rem;
+  background: rgba(255, 255, 255, 0.05);
+  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;
+  gap: 1rem;
+}
+
+.overlay {
+  min-height: 100vh;
+  display: grid;
+  place-items: center;
+  background: rgba(0, 0, 0, 0);
+}
+
+.overlay__card {
+  padding: 1.5rem 2rem;
+  border-radius: 18px;
+  background: rgba(15, 23, 42, 0.85);
+  color: #f8fafc;
+  max-width: 960px;
+  width: min(90vw, 960px);
+  box-shadow: 0 16px 60px rgba(15, 23, 42, 0.35);
+}
+
+.overlay__author {
+  display: block;
+  font-size: 1.1rem;
+  font-weight: 700;
+  margin-bottom: 0.75rem;
+  color: #38bdf8;
+}
+
+.overlay__text {
+  font-size: clamp(1.4rem, 2.5vw, 2rem);
+  line-height: 1.4;
+}
+
+.overlay__placeholder {
+  padding: 1rem 1.4rem;
+  border-radius: 12px;
+  background: rgba(255, 255, 255, 0.08);
+  color: rgba(255, 255, 255, 0.75);
+}
+
+.status {
+  padding: 0.4rem 0.8rem;
+  border-radius: 999px;
+  font-size: 0.85rem;
+  font-weight: 600;
+}
+
+.status--connecting {
+  background: rgba(125, 211, 252, 0.2);
+  color: #7dd3fc;
+}
+
+.status--live {
+  background: rgba(74, 222, 128, 0.2);
+  color: #4ade80;
+}
+
+.status--error {
+  background: rgba(248, 113, 113, 0.2);
+  color: #f87171;
+}
diff --git a/apps/client/app/layout.tsx b/client/app/layout.tsx
similarity index 100%
rename from apps/client/app/layout.tsx
rename to client/app/layout.tsx
diff --git a/client/app/overlay/page.tsx b/client/app/overlay/page.tsx
new file mode 100644
index 0000000..8c2f449
--- /dev/null
+++ b/client/app/overlay/page.tsx
@@ -0,0 +1,52 @@
+'use client';
+
+import { useEffect, useState } from 'react';
+import type { ChatMessage } from '@shared/chat';
+
+const BACKEND_URL = process.env.NEXT_PUBLIC_BACKEND_URL ?? 'http://localhost:4100';
+
+type SelectionPayload = {
+  message: ChatMessage | null;
+};
+
+export default function OverlayPage() {
+  const [message, setMessage] = useState<ChatMessage | null>(null);
+  const [connected, setConnected] = useState(false);
+
+  useEffect(() => {
+    const source = new EventSource(`${BACKEND_URL}/overlay/stream`);
+    const onSelection = (event: MessageEvent) => {
+      try {
+        const payload: SelectionPayload = JSON.parse(event.data);
+        setMessage(payload.message);
+        setConnected(true);
+      } catch (error) {
+        console.error('overlay: failed to parse payload', error);
+      }
+    };
+
+    source.addEventListener('selection', onSelection as EventListener);
+    source.addEventListener('heartbeat', () => setConnected(true));
+    source.onerror = () => setConnected(false);
+
+    return () => {
+      source.removeEventListener('selection', onSelection as EventListener);
+      source.close();
+    };
+  }, []);
+
+  return (
+    <main className="overlay">
+      {message ? (
+        <div className="overlay__card">
+          <span className="overlay__author">{message.author}</span>
+          <p className="overlay__text">{message.text}</p>
+        </div>
+      ) : (
+        <div className="overlay__placeholder">
+          <span>{connected ? 'Awaiting selection…' : 'Reconnecting…'}</span>
+        </div>
+      )}
+    </main>
+  );
+}
diff --git a/client/app/page.tsx b/client/app/page.tsx
new file mode 100644
index 0000000..30d4b85
--- /dev/null
+++ b/client/app/page.tsx
@@ -0,0 +1,18 @@
+import Link from 'next/link';
+
+export default function HomePage() {
+  return (
+    <main className="landing">
+      <section className="panel">
+        <h1>YouTube Chat Client</h1>
+        <p>
+          Launch the dashboard to monitor live chat and control the overlay that feeds OBS.
+        </p>
+        <Link className="primary" href="/dashboard">
+          Open Dashboard
+        </Link>
+        <p className="muted">Overlay preview lives at /overlay for the OBS browser source.</p>
+      </section>
+    </main>
+  );
+}
diff --git a/client/next-env.d.ts b/client/next-env.d.ts
new file mode 100644
index 0000000..830fb59
--- /dev/null
+++ b/client/next-env.d.ts
@@ -0,0 +1,6 @@
+/// <reference types="next" />
+/// <reference types="next/image-types/global" />
+/// <reference path="./.next/types/routes.d.ts" />
+
+// NOTE: This file should not be edited
+// see https://nextjs.org/docs/app/api-reference/config/typescript for more information.
diff --git a/apps/client/next.config.js b/client/next.config.js
similarity index 100%
rename from apps/client/next.config.js
rename to client/next.config.js
diff --git a/client/tsconfig.json b/client/tsconfig.json
new file mode 100644
index 0000000..72a4348
--- /dev/null
+++ b/client/tsconfig.json
@@ -0,0 +1,34 @@
+{
+  "extends": "../tsconfig.base.json",
+  "compilerOptions": {
+    "jsx": "preserve",
+    "types": [
+      "next",
+      "next/types/global",
+      "next/image-types/global"
+    ],
+    "lib": [
+      "dom",
+      "dom.iterable",
+      "esnext"
+    ],
+    "allowJs": true,
+    "noEmit": true,
+    "incremental": true,
+    "plugins": [
+      {
+        "name": "next"
+      }
+    ]
+  },
+  "include": [
+    "**/*.ts",
+    "**/*.tsx",
+    "next-env.d.ts",
+    ".next/types/**/*.ts"
+  ],
+  "exclude": [
+    "node_modules",
+    "dist"
+  ]
+}
diff --git a/memory-bank/activeContext.md b/memory-bank/activeContext.md
index 30660e0..7358e57 100644
--- a/memory-bank/activeContext.md
+++ b/memory-bank/activeContext.md
@@ -1,19 +1,19 @@
 # Active Context
 
 ## Current Focus
-- Maintain Memory Bank documentation and scaffold the monorepo structure for the YouTube Live chat client.
-- Define onboarding flow for Innertube-based chat ingestion and configuration.
+- 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.
 
 ## Recent Decisions
-- Switch from official YouTube Data API to Innertube (`youtubei.js`) ingestion to avoid quota issues.
-- Use Next.js for operator UI and OBS overlay, with a separate backend worker for polling and realtime events.
-- Prefer Server-Sent Events for one-way overlay updates; keep WebSocket option in mind for future enhancements.
+- 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.
 
 ## Immediate Next Steps
-1. Initialize `pnpm` workspace with `apps/client`, `packages/backend`, and `packages/shared` directories. (Scaffolded.)
-2. Configure baseline project files: `package.json`, `pnpm-workspace.yaml`, TS configs, linting setup. (Scaffolded.)
-3. Stub backend poller using `youtubei.js` to verify dev scripts once dependencies are installed.
+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.
 
 ## Open Questions
-- How to persist or refresh Innertube context data (visitor data, API key) between sessions for reliability.
-- Whether to include optional SQLite persistence from the outset or add once basic flow is working.
+- 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.
diff --git a/memory-bank/progress.md b/memory-bank/progress.md
index 645ca42..1965a33 100644
--- a/memory-bank/progress.md
+++ b/memory-bank/progress.md
@@ -2,23 +2,23 @@
 
 ## Phase 0 – Foundations
 - [x] Create Memory Bank documentation.
-- [x] Scaffold pnpm workspace structure.
-- [ ] Commit baseline configs and ensure dev scripts run.
+- [x] Simplify project layout (single package, shared types via alias).
+- [ ] Document setup instructions for the new command set.
 
 ## Phase 1 – Core Infrastructure
-- [ ] Implement Innertube client bootstrap (retrieve context, manage continuation tokens).
-- [ ] Build backend poller with message normalization and rate/error handling.
-- [ ] Expose REST+SSE endpoints for chat and overlay delivery.
+- [x] Implement Innertube client bootstrap (retrieve context, manage continuation tokens).
+- [ ] Build backend poller with full normalization, error/backoff handling, and persistence hooks.
+- [x] Expose REST+SSE endpoints for chat and overlay delivery.
 
 ## Phase 2 – Operator Dashboard
-- [ ] Implement chat feed UI with filters/search and live updates.
-- [ ] Provide message selection controls and status indicators.
+- [ ] Implement chat feed UI with filters/search and live status.
+- [x] Provide message selection controls and overlay preview basics.
 - [ ] Handle error states (rate limits, disconnects) gracefully in UI.
 
 ## Phase 3 – OBS Overlay Experience
-- [ ] Create minimal overlay page that consumes SSE stream.
-- [ ] Style overlay for readability and ensure quick updates in OBS browser source.
-- [ ] Add local preview within dashboard for operator verification.
+- [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).
 
 ## Phase 4 – Reliability & Polish
 - [ ] Add optional persistence (SQLite) and crash recovery.
@@ -26,4 +26,4 @@
 - [ ] Write tests (unit/integration) and contributor documentation.
 
 ## Current Status
-- Memory Bank established; repository scaffolding in place; backend ingestion stubs pending.
+- Single-package setup in place; backend/frontend run via unified scripts. Awaiting validation on clean install, ingestion hardening, and richer dashboard UX.
diff --git a/memory-bank/systemPatterns.md b/memory-bank/systemPatterns.md
index 5098f91..71d257a 100644
--- a/memory-bank/systemPatterns.md
+++ b/memory-bank/systemPatterns.md
@@ -1,18 +1,18 @@
 # System Patterns
 
 ## Architecture Overview
-- **Monorepo Layout:** `pnpm` workspaces with `apps/client` (Next.js dashboard + overlay), `packages/backend` (Node ingestion + realtime gateway), `packages/shared` (types, schemas).
+- **Project Layout:** Single pnpm package with three top-level folders: `client/` (Next.js dashboard + overlay), `backend/` (Node ingestion + realtime gateway), and `shared/` (typescript definitions shared between both).
 - **Data Flow:**
-  1. Backend worker polls YouTube Live chat through the Innertube (youtubei) API, maintaining continuation tokens.
-  2. Messages stored in-memory (and optionally SQLite) and emitted over an internal event bus.
-  3. Client dashboard fetches chat via HTTP (React Query) and pushes selection back via REST.
-  4. Overlay page listens to Server-Sent Events stream for the currently highlighted message.
-- **Realtime Delivery:** SSE chosen for one-directional updates to OBS browser source; can swap to WebSocket if bidirectional control is required later.
-- **Configuration:** Environment variables drive stream IDs and optional auth tokens; local secrets persisted in `.env.local` or config files.
+  1. Backend worker polls YouTube Live chat through the Innertube (`youtubei.js`) API, maintaining continuation tokens.
+  2. Messages are stored in-memory (optionally persisted later) and emitted over an internal event bus.
+  3. Client dashboard fetches chat data via REST and pushes selection updates via REST.
+  4. Overlay page consumes a Server-Sent Events stream to stay in sync with the selected message.
+- **Realtime Delivery:** SSE for one-directional updates to OBS browser source; leave room to switch to WebSockets if we need bidirectional control later.
+- **Configuration:** `.env.local` (or process env) supplies `YOUTUBE_LIVE_ID` and optional Innertube overrides; backend picks mock mode automatically when unset.
 
 ## Key Patterns & Practices
-- Abstract ingestion behind an interface so alternate providers (official API, headless browser) can be swapped in quickly.
-- Cache Innertube visitor data and API keys locally to reduce startup latency and handle rotations gracefully.
-- Use Zod schemas in shared package to validate external responses and internal payloads.
-- Centralized error reporting/logging with structured logs for monitoring during streams.
-- Graceful degradation: exponential backoff on fetch failures, last-known overlay message cached to disk to survive restarts.
+- Abstract ingestion behind a module (`backend/src/ingestion/youtubei.ts`) so alternate providers (official API, headless browser) can be swapped in quickly.
+- Cache Innertube visitor data and API keys locally when we extend functionality, keeping startup fast and resilient to key rotations.
+- Use shared TypeScript definitions via the `@shared` path alias to maintain type safety across backend and client.
+- Centralized logging in the backend with structured payloads for easier debugging during long streams.
+- Graceful degradation: backoff strategies for fetch failures and mock-data fallback keep the UI usable even without credentials.
diff --git a/memory-bank/techContext.md b/memory-bank/techContext.md
index 573b501..b398353 100644
--- a/memory-bank/techContext.md
+++ b/memory-bank/techContext.md
@@ -1,17 +1,22 @@
 # Tech Context
 
 ## Primary Stack
-- **Frontend:** Next.js 14 (App Router) + React 18 + TypeScript, styled with Tailwind CSS and optional shadcn/ui components.
-- **Backend Worker:** Node.js (Fastify) with `youtubei.js` for Innertube chat ingestion, `better-sqlite3` for persistence, EventEmitter for internal pub/sub.
-- **Realtime:** Server-Sent Events for overlay updates; potential future WebSocket support via `ws`.
-- **Tooling:** `pnpm` for workspace management, ESLint + Prettier, Zod for schema validation, Vitest/Playwright for testing (to be introduced later).
+- **Frontend:** Next.js 15 (App Router) + React 19 + TypeScript, styled with handcrafted CSS for now (Tailwind/shadcn still optional future add-ons).
+- **Backend Worker:** Node.js service run with `tsx`, using `youtubei.js` for Innertube chat ingestion, `fastify` + `@fastify/cors` for REST/SSE transport, and `eventemitter3` for internal pub/sub.
+- **Shared Types:** Simple TypeScript module in `shared/chat.ts`, imported via the `@shared/*` path alias defined in `tsconfig.base.json`.
+- **Realtime:** Server-Sent Events for overlay updates; WebSockets remain a future enhancement option.
+
+## Tooling & Commands
+- Single root `package.json`; `pnpm install` manages all deps.
+- `pnpm dev` runs backend (`tsx backend/src/index.ts`) and client (`next dev client`) concurrently via `concurrently`.
+- `pnpm build` compiles the backend with `tsc` and builds the Next app; `pnpm start:backend` / `pnpm start:client` serve production bundles separately.
 
 ## Environment & Dependencies
-- No official API quota required; ingestion relies on Innertube visitor tokens produced at runtime.
-- Required env values: `YOUTUBE_LIVE_ID` (or stream URL), optional overrides for Innertube API key/context if we need to pin versions.
-- Local `.env.local` file manages configuration; sample `.env.example` committed for contributors.
+- Requires `YOUTUBE_LIVE_ID` (or full URL) to enable real chat ingestion; omitted value triggers mock mode.
+- Optional overrides for Innertube API keys/version can be supplied through env vars when needed.
+- `better-sqlite3` is included for future persistence work but not yet wired in.
 
 ## Constraints & Considerations
-- Innertube endpoints change occasionally; design ingestion to update keys dynamically and fall back to alternate strategies if responses shift.
-- Application expected to run on Windows/macOS/Linux desktops used for streaming; keep dependencies cross-platform and avoid native build steps when possible.
-- No external database by default; design backend to operate fully in-process with optional local persistence.
+- Innertube endpoints may break; keep ingestion module adaptable and plan for a headless-browser fallback.
+- Project expected to run on the streamer’s machine; dependencies must remain cross-platform and avoid heavyweight native builds where possible.
+- No separate package boundaries anymore, so TypeScript path aliases and import hygiene are important to prevent tangled relative paths.
diff --git a/package.json b/package.json
index a95738e..a73c254 100644
--- a/package.json
+++ b/package.json
@@ -6,9 +6,32 @@
   "license": "MIT",
   "packageManager": "pnpm@8.15.4",
   "scripts": {
-    "dev": "pnpm -r dev",
-    "build": "pnpm -r build",
-    "lint": "pnpm -r lint",
-    "start": "pnpm -r start"
+    "dev": "concurrently \"pnpm dev:backend\" \"pnpm dev:client\"",
+    "dev:backend": "tsx --env-file=.env backend/src/index.ts",
+    "dev:client": "next dev client",
+    "build": "pnpm build:backend && pnpm build:client",
+    "build:backend": "tsc -p backend/tsconfig.build.json",
+    "build:client": "next build client",
+    "start:backend": "node backend/dist/index.js",
+    "start:client": "next start client",
+    "lint": "next lint client"
+  },
+  "dependencies": {
+    "@fastify/cors": "^11.1.0",
+    "better-sqlite3": "^12.4.1",
+    "eventemitter3": "^5.0.1",
+    "fastify": "^5.6.1",
+    "next": "^15.5.4",
+    "react": "^19.2.0",
+    "react-dom": "^19.2.0",
+    "youtubei.js": "^15.1.1",
+    "zod": "^4.1.11"
+  },
+  "devDependencies": {
+    "@types/node": "^20.16.5",
+    "@types/react": "19.2.0",
+    "concurrently": "^8.2.2",
+    "tsx": "^4.19.1",
+    "typescript": "^5.9.3"
   }
 }
diff --git a/packages/backend/package.json b/packages/backend/package.json
deleted file mode 100644
index 3176aeb..0000000
--- a/packages/backend/package.json
+++ /dev/null
@@ -1,14 +0,0 @@
-{
-  "name": "backend",
-  "version": "0.1.0",
-  "private": true,
-  "description": "YouTube chat poller and realtime bridge.",
-  "main": "dist/index.js",
-  "types": "dist/index.d.ts",
-  "scripts": {
-    "dev": "ts-node src/index.ts",
-    "build": "tsc -p tsconfig.build.json",
-    "start": "node dist/index.js",
-    "lint": "eslint 'src/**/*.{ts,tsx}'"
-  }
-}
diff --git a/packages/backend/src/index.ts b/packages/backend/src/index.ts
deleted file mode 100644
index c40b165..0000000
--- a/packages/backend/src/index.ts
+++ /dev/null
@@ -1,12 +0,0 @@
-import { bootstrapInnertube, fetchChatBatch } from './ingestion/youtubei';
-
-export async function startBackend() {
-  console.log('Starting backend worker (youtubei ingestion pending).');
-  const state = await bootstrapInnertube();
-  console.log('Initial continuation state', state);
-  await fetchChatBatch(state);
-}
-
-if (require.main === module) {
-  void startBackend();
-}
diff --git a/packages/backend/src/ingestion/youtubei.ts b/packages/backend/src/ingestion/youtubei.ts
deleted file mode 100644
index 9726e8d..0000000
--- a/packages/backend/src/ingestion/youtubei.ts
+++ /dev/null
@@ -1,18 +0,0 @@
-export type ContinuationState = {
-  token: string | null;
-  apiKey?: string;
-};
-
-export async function bootstrapInnertube(): Promise<ContinuationState> {
-  // TODO: fetch initial visitor data and live chat continuation token via youtubei.js
-  return { token: null };
-}
-
-export async function fetchChatBatch(state: ContinuationState) {
-  // TODO: use youtubei.js to fetch messages with the provided continuation token
-  // return both normalized messages and the next continuation token
-  return {
-    messages: [],
-    next: state.token
-  };
-}
diff --git a/packages/backend/tsconfig.json b/packages/backend/tsconfig.json
deleted file mode 100644
index ef1e1ea..0000000
--- a/packages/backend/tsconfig.json
+++ /dev/null
@@ -1,10 +0,0 @@
-{
-  "extends": "../../tsconfig.base.json",
-  "compilerOptions": {
-    "outDir": "dist",
-    "module": "CommonJS",
-    "target": "ES2021",
-    "noEmit": false
-  },
-  "include": ["src"]
-}
diff --git a/packages/shared/package.json b/packages/shared/package.json
deleted file mode 100644
index aadfdf9..0000000
--- a/packages/shared/package.json
+++ /dev/null
@@ -1,14 +0,0 @@
-{
-  "name": "shared",
-  "version": "0.1.0",
-  "private": true,
-  "description": "Shared types and schemas.",
-  "main": "dist/index.js",
-  "types": "dist/index.d.ts",
-  "scripts": {
-    "dev": "tsc --watch -p tsconfig.json",
-    "build": "tsc -p tsconfig.json",
-    "start": "node dist/index.js",
-    "lint": "eslint 'src/**/*.{ts,tsx}'"
-  }
-}
diff --git a/packages/shared/tsconfig.json b/packages/shared/tsconfig.json
deleted file mode 100644
index e583ee8..0000000
--- a/packages/shared/tsconfig.json
+++ /dev/null
@@ -1,12 +0,0 @@
-{
-  "extends": "../../tsconfig.base.json",
-  "compilerOptions": {
-    "outDir": "dist",
-    "module": "ESNext",
-    "target": "ES2021",
-    "declaration": true,
-    "declarationMap": true,
-    "noEmit": false
-  },
-  "include": ["src"]
-}
diff --git a/pnpm-workspace.yaml b/pnpm-workspace.yaml
deleted file mode 100644
index e9b0dad..0000000
--- a/pnpm-workspace.yaml
+++ /dev/null
@@ -1,3 +0,0 @@
-packages:
-  - 'apps/*'
-  - 'packages/*'
diff --git a/packages/shared/src/index.ts b/shared/chat.ts
similarity index 100%
rename from packages/shared/src/index.ts
rename to shared/chat.ts
diff --git a/tsconfig.base.json b/tsconfig.base.json
index b9e83d2..5650268 100644
--- a/tsconfig.base.json
+++ b/tsconfig.base.json
@@ -12,6 +12,9 @@
     "isolatedModules": true,
     "noEmit": true,
     "types": ["node"],
-    "baseUrl": "."
+    "baseUrl": ".",
+    "paths": {
+      "@shared/*": ["shared/*"]
+    }
   }
 }
diff --git a/tsconfig.json b/tsconfig.json
index ebf0d3e..a9b35ac 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -1,8 +1,7 @@
 {
   "files": [],
   "references": [
-    { "path": "apps/client" },
-    { "path": "packages/backend" },
-    { "path": "packages/shared" }
+    { "path": "client" },
+    { "path": "backend" }
   ]
 }