diff --git a/.env.example b/.env.example
index d9c559c..f9155f9 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=0.3.2
+JAMA_VERSION=0.3.3
 
 # Default admin credentials (used on FIRST RUN only)
 ADMIN_NAME=Admin User
diff --git a/backend/package.json b/backend/package.json
index 23686b7..084892a 100644
--- a/backend/package.json
+++ b/backend/package.json
@@ -1,6 +1,6 @@
 {
   "name": "jama-backend",
-  "version": "0.3.2",
+  "version": "0.3.3",
   "description": "TeamChat backend server",
   "main": "src/index.js",
   "scripts": {
diff --git a/build.sh b/build.sh
index cc41eb7..e36d70e 100644
--- a/build.sh
+++ b/build.sh
@@ -13,7 +13,7 @@
 # ─────────────────────────────────────────────────────────────
 set -euo pipefail
 
-VERSION="${1:-0.3.2}"
+VERSION="${1:-0.3.3}"
 ACTION="${2:-}"
 REGISTRY="${REGISTRY:-}"
 IMAGE_NAME="jama"
diff --git a/frontend/package.json b/frontend/package.json
index 7b4baf1..c838230 100644
--- a/frontend/package.json
+++ b/frontend/package.json
@@ -1,6 +1,6 @@
 {
   "name": "jama-frontend",
-  "version": "0.3.2",
+  "version": "0.3.3",
   "private": true,
   "scripts": {
     "dev": "vite",
diff --git a/frontend/src/components/MessageInput.css b/frontend/src/components/MessageInput.css
index d812234..96735b0 100644
--- a/frontend/src/components/MessageInput.css
+++ b/frontend/src/components/MessageInput.css
@@ -236,3 +236,39 @@
     min-width: 480px;
   }
 }
+
+/* Mention display overlay — sits over the textarea to show formatted @names */
+.input-wrap {
+  position: relative;
+}
+
+.msg-input-mirror {
+  position: absolute;
+  top: 0; left: 0; right: 0;
+  pointer-events: none;      /* clicks pass through to textarea */
+  overflow: hidden;
+  white-space: pre-wrap;
+  word-break: break-word;
+  color: var(--text-primary);
+  border-color: transparent;  /* hide the border — textarea draws it */
+  background: transparent;
+  z-index: 1;
+}
+
+.msg-input-raw {
+  position: relative;
+  color: transparent;          /* hide raw text — mirror shows it */
+  caret-color: var(--text-primary); /* but keep the cursor visible */
+  background: transparent;
+  z-index: 2;
+}
+
+/* Bold mention chips inside the mirror */
+.mention-chip {
+  font-weight: 700;
+  color: var(--primary);
+  font-style: normal;
+}
+
+/* Placeholder is on the raw textarea; mirror has none */
+.msg-input-mirror::placeholder { display: none; }
diff --git a/frontend/src/components/MessageInput.jsx b/frontend/src/components/MessageInput.jsx
index 627078a..25f4efe 100644
--- a/frontend/src/components/MessageInput.jsx
+++ b/frontend/src/components/MessageInput.jsx
@@ -12,6 +12,20 @@ function isEmojiOnly(str) {
   return emojiRegex.test(str.trim());
 }
 
+
+// Convert raw mention syntax to display HTML for the input mirror overlay
+function renderInputDisplay(raw) {
+  // Escape HTML special chars first
+  const escaped = raw
+    .replace(/&/g, '&')
+    .replace(/</g, '&lt;')
+    .replace(/>/g, '&gt;');
+  // Replace @[name](id) with bold @name span
+  return escaped.replace(/@\[([^\]]+)\]\(\d+\)/g,
+    (_, name) => `<strong class="mention-chip">@${name}</strong>`
+  );
+}
+
 export default function MessageInput({ group, replyTo, onCancelReply, onSend, onTyping }) {
   const [text, setText] = useState('');
   const [imageFile, setImageFile] = useState(null);
@@ -25,6 +39,7 @@ export default function MessageInput({ group, replyTo, onCancelReply, onSend, on
   const [showAttachMenu, setShowAttachMenu] = useState(false);
   const [showEmojiPicker, setShowEmojiPicker] = useState(false);
   const inputRef = useRef(null);
+  const mirrorRef = useRef(null);
   const typingTimer = useRef(null);
   const wasTyping = useRef(false);
   const mentionStart = useRef(-1);
@@ -94,8 +109,10 @@ export default function MessageInput({ group, replyTo, onCancelReply, onSend, on
     el.style.height = 'auto';
     const lineHeight = parseFloat(getComputedStyle(el).lineHeight);
     const maxHeight = lineHeight * 5 + 20;
-    el.style.height = Math.min(el.scrollHeight, maxHeight) + 'px';
+    const newH = Math.min(el.scrollHeight, maxHeight) + 'px';
+    el.style.height = newH;
     el.style.overflowY = el.scrollHeight > maxHeight ? 'auto' : 'hidden';
+    if (mirrorRef.current) mirrorRef.current.style.height = newH;
 
     const cur = e.target.selectionStart;
     const lastAt = val.lastIndexOf('@', cur - 1);
@@ -160,6 +177,7 @@ export default function MessageInput({ group, replyTo, onCancelReply, onSend, on
     if (inputRef.current) {
       inputRef.current.style.height = 'auto';
       inputRef.current.style.overflowY = 'hidden';
+      if (mirrorRef.current) mirrorRef.current.style.height = 'auto';
     }
 
     // Tag emoji-only messages so they can be rendered large
@@ -334,10 +352,17 @@ export default function MessageInput({ group, replyTo, onCancelReply, onSend, on
         )}
 
         <div className="input-wrap">
+          {/* Mirror overlay renders formatted mention text over the transparent textarea */}
+          <div
+            ref={mirrorRef}
+            className="msg-input msg-input-mirror"
+            aria-hidden="true"
+            dangerouslySetInnerHTML={{ __html: renderInputDisplay(text) || '' }}
+          />
           <textarea
             ref={inputRef}
-            className="msg-input"
-            placeholder={`Message ${group?.name || ''}...`}
+            className="msg-input msg-input-raw"
+            placeholder={!text ? `Message ${group?.name || ''}...` : ''}
             value={text}
             onChange={handleChange}
             onKeyDown={handleKeyDown}
diff --git a/frontend/src/components/Sidebar.jsx b/frontend/src/components/Sidebar.jsx
index e4facb9..9653585 100644
--- a/frontend/src/components/Sidebar.jsx
+++ b/frontend/src/components/Sidebar.jsx
@@ -106,7 +106,7 @@ export default function Sidebar({ groups, activeGroupId, onSelectGroup, notifica
           </div>
           <div className="flex items-center justify-between gap-2">
             <span className="group-last-msg truncate">
-              {group.last_message || (group.is_readonly ? '📢 Read-only' : 'No messages yet')}
+              {(group.last_message || '').replace(/@\[([^\]]+)\]\(\d+\)/g, '@$1') || (group.is_readonly ? '📢 Read-only' : 'No messages yet')}
             </span>
             {notifs > 0 && <span className="badge shrink-0">{notifs}</span>}
             {hasUnread && notifs === 0 && <span className="badge badge-unread shrink-0">{unreadCount}</span>}
diff --git a/frontend/src/index.css b/frontend/src/index.css
index 74c9784..a65c40f 100644
--- a/frontend/src/index.css
+++ b/frontend/src/index.css
@@ -372,3 +372,10 @@ a { color: inherit; text-decoration: none; }
 [data-theme="dark"] .mention-avatar {
   background: var(--primary);
 }
+
+[data-theme="dark"] .msg-input-mirror {
+  color: var(--text-primary);
+}
+[data-theme="dark"] .msg-input-raw {
+  caret-color: var(--text-primary);
+}