diff --git a/.env.example b/.env.example
index 68fc71c..54d9cbe 100644
--- a/.env.example
+++ b/.env.example
@@ -7,7 +7,7 @@ TZ=UTC
 # Copy this file to .env and customize
 
 # Image version to run (set by build.sh, or use 'latest')
-JAMA_VERSION=0.3.7
+JAMA_VERSION=0.3.8
 
 # Default admin credentials (used on FIRST RUN only)
 ADMIN_NAME=Admin User
diff --git a/backend/package.json b/backend/package.json
index c994f05..582d0e4 100644
--- a/backend/package.json
+++ b/backend/package.json
@@ -1,6 +1,6 @@
 {
   "name": "jama-backend",
-  "version": "0.3.7",
+  "version": "0.3.8",
   "description": "TeamChat backend server",
   "main": "src/index.js",
   "scripts": {
diff --git a/backend/src/routes/groups.js b/backend/src/routes/groups.js
index 8b710bc..5e099c8 100644
--- a/backend/src/routes/groups.js
+++ b/backend/src/routes/groups.js
@@ -51,7 +51,8 @@ router.get('/', authMiddleware, (req, res) => {
     SELECT g.*,
       (SELECT COUNT(*) FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0) as message_count,
       (SELECT m.content FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0 ORDER BY m.created_at DESC LIMIT 1) as last_message,
-      (SELECT m.created_at FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0 ORDER BY m.created_at DESC LIMIT 1) as last_message_at
+      (SELECT m.created_at FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0 ORDER BY m.created_at DESC LIMIT 1) as last_message_at,
+      (SELECT m.user_id FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0 ORDER BY m.created_at DESC LIMIT 1) as last_message_user_id
     FROM groups g
     WHERE g.type = 'public'
     ORDER BY g.is_default DESC, g.name ASC
@@ -63,7 +64,8 @@ router.get('/', authMiddleware, (req, res) => {
       u.name as owner_name,
       (SELECT COUNT(*) FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0) as message_count,
       (SELECT m.content FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0 ORDER BY m.created_at DESC LIMIT 1) as last_message,
-      (SELECT m.created_at FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0 ORDER BY m.created_at DESC LIMIT 1) as last_message_at
+      (SELECT m.created_at FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0 ORDER BY m.created_at DESC LIMIT 1) as last_message_at,
+      (SELECT m.user_id FROM messages m WHERE m.group_id = g.id AND m.is_deleted = 0 ORDER BY m.created_at DESC LIMIT 1) as last_message_user_id
     FROM groups g
     JOIN group_members gm ON g.id = gm.group_id AND gm.user_id = ?
     LEFT JOIN users u ON g.owner_id = u.id
@@ -88,7 +90,10 @@ router.get('/', authMiddleware, (req, res) => {
       const otherUserId = g.direct_peer1_id === userId ? g.direct_peer2_id : g.direct_peer1_id;
       if (otherUserId) {
         const other = db.prepare('SELECT display_name, name FROM users WHERE id = ?').get(otherUserId);
-        if (other) g.name = other.display_name || other.name;
+        if (other) {
+          g.peer_real_name = other.name;           // always the real name for sidebar title
+          g.name = other.display_name || other.name; // display name for chat header
+        }
       }
     }
     return g;
diff --git a/build.sh b/build.sh
index 6f8ec71..f5452ac 100644
--- a/build.sh
+++ b/build.sh
@@ -13,7 +13,7 @@
 # ─────────────────────────────────────────────────────────────
 set -euo pipefail
 
-VERSION="${1:-0.3.7}"
+VERSION="${1:-0.3.8}"
 ACTION="${2:-}"
 REGISTRY="${REGISTRY:-}"
 IMAGE_NAME="jama"
diff --git a/frontend/package.json b/frontend/package.json
index 45fc143..fecb683 100644
--- a/frontend/package.json
+++ b/frontend/package.json
@@ -1,6 +1,6 @@
 {
   "name": "jama-frontend",
-  "version": "0.3.7",
+  "version": "0.3.8",
   "private": true,
   "scripts": {
     "dev": "vite",
diff --git a/frontend/src/components/Sidebar.jsx b/frontend/src/components/Sidebar.jsx
index bcbf038..37f4714 100644
--- a/frontend/src/components/Sidebar.jsx
+++ b/frontend/src/components/Sidebar.jsx
@@ -99,14 +99,19 @@ export default function Sidebar({ groups, activeGroupId, onSelectGroup, notifica
         </div>
         <div className="group-info flex-1 overflow-hidden">
           <div className="flex items-center justify-between">
-            <span className={`group-name truncate ${hasUnread ? 'unread-name' : ''}`}>{group.name}</span>
+            <span className={`group-name truncate ${hasUnread ? 'unread-name' : ''}`}>{group.is_direct && group.peer_real_name ? group.peer_real_name : group.name}</span>
             {group.last_message_at && (
               <span className="group-time">{formatTime(group.last_message_at)}</span>
             )}
           </div>
           <div className="flex items-center justify-between gap-2">
             <span className="group-last-msg truncate">
-              {(group.last_message || '').replace(/@\[([^\]]+)\]/g, '@$1') || (group.is_readonly ? '📢 Read-only' : 'No messages yet')}
+{(() => {
+                const preview = (group.last_message || '').replace(/@\[([^\]]+)\]/g, '@$1');
+                if (!preview) return group.is_readonly ? '📢 Read-only' : 'No messages yet';
+                const isOwn = group.last_message_user_id && user && group.last_message_user_id === user.id;
+                return isOwn ? <><strong style={{fontWeight:600}}>You:</strong> {preview}</> : preview;
+              })()}
             </span>
             {notifs > 0 && <span className="badge shrink-0">{notifs}</span>}
             {hasUnread && notifs === 0 && <span className="badge badge-unread shrink-0">{unreadCount}</span>}