diff --git a/FEATURES.md b/FEATURES.md
index f561981a..3f04221b 100644
--- a/FEATURES.md
+++ b/FEATURES.md
@@ -17,6 +17,7 @@
 - Multi-select for batch archive, delete, move, and tag
 - Archive directly, by year, or by month
 - Tags carry color labels, reorder by drag, and can be assigned by dropping a message onto them
+- Tags optionally nest: pick a parent when you create one and the sidebar turns them into a tree
 - Star or unstar, with a configurable mark-as-read delay
 - Large mailboxes scroll virtually, and the first page of mail prefetches at login
 - Quick reply, hover actions, favicon-based sender avatars, recipient popovers
diff --git a/components/email/email-context-menu.tsx b/components/email/email-context-menu.tsx
index d74ed5cb..bccd8a72 100644
--- a/components/email/email-context-menu.tsx
+++ b/components/email/email-context-menu.tsx
@@ -38,6 +38,8 @@ import {
 } from "lucide-react";
 import { cn, buildMailboxTree, MailboxNode } from "@/lib/utils";
 import { localizeMailboxName } from "@/lib/mailbox-label";
+import { useKeywordFormat } from "@/hooks/use-keyword-format";
+import { TagOptionLabel } from "./tag-option-label";
 import { useSettingsStore, KEYWORD_PALETTE } from "@/stores/settings-store";
 
 interface Position {
@@ -155,6 +157,7 @@ export function EmailContextMenu({
   const _tColor = useTranslations("email_viewer.color_tag");
   const tEmailViewer = useTranslations("email_viewer");
   const emailKeywords = useSettingsStore((state) => state.emailKeywords);
+  const { tagNameCandidates } = useKeywordFormat();
   const isUnread = !email.keywords?.$seen;
   const isStarred = email.keywords?.$flagged;
   const isPinned = email.keywords?.['$pinned'] === true;
@@ -170,7 +173,7 @@ export function EmailContextMenu({
 
   // Build color options from keyword definitions in settings
   const colorOptions = emailKeywords.map((kw) => ({
-    name: kw.label,
+    candidates: tagNameCandidates(kw.id),
     value: kw.id,
     color: KEYWORD_PALETTE[kw.color]?.dot || "bg-gray-500",
   }));
@@ -381,26 +384,28 @@ export function EmailContextMenu({
       {/* Set tag submenu - only for single email */}
       {!showBatchActions && (
         <ContextMenuSubMenu icon={Tag} label={t("color_tag")}>
-          {colorOptions.map((option) => {
-            const isActive = currentColors.includes(option.value);
-            return (
-              <button
-                key={option.value}
-                role="menuitem"
-                onClick={() => handleAction(() => onSetColorTag?.(option.value))}
-                className={cn(
-                  "w-full px-3 py-1.5 text-sm text-start flex items-center gap-2 hover:bg-muted cursor-pointer",
-                  isActive && "bg-accent font-medium"
-                )}
-              >
-                <span className={cn("w-3 h-3 rounded-full flex-shrink-0", option.color)} />
-                <span className="flex-1">{option.name}</span>
-                {isActive && (
-                  <Check className="w-3.5 h-3.5 flex-shrink-0 text-foreground" />
-                )}
-              </button>
-            );
-          })}
+          <div className="max-w-[18rem]">
+            {colorOptions.map((option) => {
+              const isActive = currentColors.includes(option.value);
+              return (
+                <button
+                  key={option.value}
+                  role="menuitem"
+                  onClick={() => handleAction(() => onSetColorTag?.(option.value))}
+                  className={cn(
+                    "w-full px-3 py-1.5 text-sm text-start flex items-center gap-2 hover:bg-muted cursor-pointer",
+                    isActive && "bg-accent font-medium"
+                  )}
+                >
+                  <span className={cn("w-3 h-3 rounded-full flex-shrink-0", option.color)} />
+                  <TagOptionLabel candidates={option.candidates} />
+                  {isActive && (
+                    <Check className="w-3.5 h-3.5 flex-shrink-0 text-foreground" />
+                  )}
+                </button>
+              );
+            })}
+          </div>
           {currentColors.length > 0 && (
             <>
               <ContextMenuSeparator />
diff --git a/components/email/email-list-item.tsx b/components/email/email-list-item.tsx
index 44c7e915..ac6178fb 100644
--- a/components/email/email-list-item.tsx
+++ b/components/email/email-list-item.tsx
@@ -16,6 +16,7 @@ import { useUIStore } from "@/stores/ui-store";
 import { EmailIdentityBadge } from "./email-identity-badge";
 import { EmailHoverActions } from "./email-hover-actions";
 import { getEmailColorTags } from "@/lib/thread-utils";
+import { useKeywordFormat } from "@/hooks/use-keyword-format";
 
 interface EmailListItemProps {
   email: Email;
@@ -40,6 +41,7 @@ export function EmailListItem({ email, selected, onClick, onDoubleClick, onConte
   const density = useSettingsStore((state) => state.density);
   const mailLayout = useSettingsStore((state) => state.mailLayout);
   const emailKeywords = useSettingsStore((state) => state.emailKeywords);
+  const { tagName } = useKeywordFormat();
   const tintListRowsByTag = useSettingsStore((state) => state.tintListRowsByTag);
   const showAvatarsInJunk = useSettingsStore((state) => state.showAvatarsInJunk);
   const { identities } = useAuthStore();
@@ -232,7 +234,11 @@ export function EmailListItem({ email, selected, onClick, onDoubleClick, onConte
                 )}
                 {email.hasAttachment && <Paperclip className="w-3.5 h-3.5 text-muted-foreground" />}
                 {keywordDefs.map((kd) => (
-                  <span key={kd.id} className={cn('h-2.5 w-2.5 rounded-full', KEYWORD_PALETTE[kd.color]?.dot || 'bg-gray-400')} />
+                  <span
+                    key={kd.id}
+                    className={cn('h-2.5 w-2.5 rounded-full', KEYWORD_PALETTE[kd.color]?.dot || 'bg-gray-400')}
+                    title={tagName(kd.id)}
+                  />
                 ))}
                 <span className={cn(
                   'text-xs tabular-nums',
@@ -290,7 +296,7 @@ export function EmailListItem({ email, selected, onClick, onDoubleClick, onConte
                     <span key={kd.id} className={cn(
                       "inline-flex items-center gap-1 px-1.5 py-0.5 text-[10px] font-medium rounded-full",
                       KEYWORD_PALETTE[kd.color]?.bg || "bg-muted"
-                    )}>
+                    )} title={tagName(kd.id)}>
                       <span className={cn("w-1.5 h-1.5 rounded-full", KEYWORD_PALETTE[kd.color]?.dot || "bg-gray-400")} />
                       {kd.label}
                     </span>
diff --git a/components/email/email-viewer.tsx b/components/email/email-viewer.tsx
index 0aa7fb97..7dca9126 100644
--- a/components/email/email-viewer.tsx
+++ b/components/email/email-viewer.tsx
@@ -12,6 +12,8 @@ import { withBasePath } from "@/lib/browser-navigation";
 import { Button } from "@/components/ui/button";
 import { Avatar } from "@/components/ui/avatar";
 import { formatFileSize, cn, buildMailboxTree, MailboxNode, formatDateTime, generateUUID } from "@/lib/utils";
+import { TagOptionLabel } from "./tag-option-label";
+import { useKeywordFormat } from "@/hooks/use-keyword-format";
 import { getSecurityStatus, extractListHeaders } from "@/lib/email-headers";
 import { emailToReadView } from "@/lib/plugin-projection";
 import { generateEmailSource } from "@/lib/email-source";
@@ -667,6 +669,7 @@ export function EmailViewer({
   const isTrustedAddressBookSender = useContactStore((state) => state.isTrustedAddressBookSender);
   const addToTrustedSendersBook = useContactStore((state) => state.addToTrustedSendersBook);
   const emailKeywords = useSettingsStore((state) => state.emailKeywords);
+  const { tagName, tagNameCandidates } = useKeywordFormat();
   const toolbarPosition = useSettingsStore((state) => state.toolbarPosition);
   const showToolbarLabels = useSettingsStore((state) => state.showToolbarLabels);
   const mailLayout = useSettingsStore((state) => state.mailLayout);
@@ -711,7 +714,7 @@ export function EmailViewer({
 
   // Color options for email tags (from user-defined keyword settings)
   const colorOptions = emailKeywords.map((kw) => ({
-    name: kw.label,
+    candidates: tagNameCandidates(kw.id),
     value: kw.id,
     color: KEYWORD_PALETTE[kw.color]?.dot || 'bg-gray-500',
   }));
@@ -3012,9 +3015,10 @@ export function EmailViewer({
                   })}
                 </span>
                 {showToolbarLabels && currentColors.length === 1 && (
-                  <span className="text-xs font-medium text-foreground">
-                    {emailKeywords.find(k => k.id === currentColors[0])?.label ?? currentColors[0]}
-                  </span>
+                  <TagOptionLabel
+                    candidates={tagNameCandidates(currentColors[0])}
+                    className="max-w-40 text-xs font-medium text-foreground"
+                  />
                 )}
               </>
             ) : (
@@ -3038,7 +3042,7 @@ export function EmailViewer({
                     )}
                   >
                     <span className={cn("w-3 h-3 rounded-full flex-shrink-0", option.color)} />
-                    <span className="truncate">{option.name}</span>
+                    <TagOptionLabel candidates={option.candidates} />
                     {isActive && <Check className="w-3 h-3 ms-auto flex-shrink-0 text-foreground" />}
                   </button>
                 );
@@ -3273,7 +3277,7 @@ export function EmailViewer({
                             )}
                           >
                             <span className={cn("w-3 h-3 rounded-full flex-shrink-0", option.color)} />
-                            <span className="truncate">{option.name}</span>
+                            <TagOptionLabel candidates={option.candidates} />
                             {isActive && <Check className="w-3 h-3 ms-auto flex-shrink-0 text-foreground" />}
                           </button>
                         );
@@ -3555,7 +3559,7 @@ export function EmailViewer({
                     )}
                   >
                     <span className={cn("w-3.5 h-3.5 rounded-full flex-shrink-0", option.color)} />
-                    <span className="truncate">{option.name}</span>
+                    <TagOptionLabel candidates={option.candidates} />
                     {isActive && <Check className="w-4 h-4 ms-auto flex-shrink-0 text-foreground" />}
                   </button>
                 );
@@ -3634,7 +3638,11 @@ export function EmailViewer({
                       const kw = emailKeywords.find(k => k.id === tagId) ?? { id: tagId, label: tagId, color: 'gray' };
                       const dotClass = KEYWORD_PALETTE[kw.color]?.dot || 'bg-gray-500';
                       return (
-                        <span key={tagId} className={cn("w-2.5 h-2.5 rounded-full flex-shrink-0", dotClass)} title={kw.label} />
+                        <span
+                          key={tagId}
+                          className={cn("w-2.5 h-2.5 rounded-full shrink-0", dotClass)}
+                          title={tagName(tagId)}
+                        />
                       );
                     })}
                   </span>
diff --git a/components/email/tag-option-label.tsx b/components/email/tag-option-label.tsx
new file mode 100644
index 00000000..e396bdad
--- /dev/null
+++ b/components/email/tag-option-label.tsx
@@ -0,0 +1,29 @@
+"use client";
+
+import { cn } from "@/lib/utils";
+import { useShortenedText } from "@/hooks/use-shortened-text";
+
+/**
+ * A tag name inside one of the tag pickers, shortened to what that picker has
+ * room for.
+ *
+ * The pickers differ in width - a narrow popover, a context submenu, a
+ * full-width mobile sheet - so each row measures itself instead of sharing one
+ * cap. `candidates` runs longest first (see `keywordRenderings`); the full name
+ * stays reachable through the tooltip.
+ */
+export function TagOptionLabel({
+  candidates,
+  className,
+}: {
+  candidates: string[];
+  className?: string;
+}) {
+  const [labelRef, shortenedLabel] = useShortenedText(candidates);
+
+  return (
+    <span ref={labelRef} className={cn("min-w-0 truncate", className)} title={candidates[0]}>
+      {shortenedLabel}
+    </span>
+  );
+}
diff --git a/components/email/thread-list-item.tsx b/components/email/thread-list-item.tsx
index 51503972..6f4812da 100644
--- a/components/email/thread-list-item.tsx
+++ b/components/email/thread-list-item.tsx
@@ -11,6 +11,7 @@ import { useUIStore } from "@/stores/ui-store";
 import { useEmailStore } from "@/stores/email-store";
 import { useAccountStore } from "@/stores/account-store";
 import { getThreadColorTag, getEmailColorTags } from "@/lib/thread-utils";
+import { useKeywordFormat } from "@/hooks/use-keyword-format";
 import { useEmailDrag } from "@/hooks/use-email-drag";
 import { useLongPress } from "@/hooks/use-long-press";
 import { ThreadEmailItem } from "./thread-email-item";
@@ -90,7 +91,8 @@ const SingleEmailItem = React.forwardRef<HTMLDivElement, SingleEmailItemProps>(
     const showRecipient = currentMailboxRole === 'sent' || currentMailboxRole === 'drafts';
     const sender = showRecipient ? (email.to?.[0] ?? email.from?.[0]) : email.from?.[0];
     const emailKeywords = useSettingsStore((state) => state.emailKeywords);
-    const tintListRowsByTag = useSettingsStore((state) => state.tintListRowsByTag);
+    const { tagName } = useKeywordFormat();
+      const tintListRowsByTag = useSettingsStore((state) => state.tintListRowsByTag);
     const density = useSettingsStore((state) => state.density);
     const mailLayout = useSettingsStore((state) => state.mailLayout);
     const timeFormat = useSettingsStore((state) => state.timeFormat);
@@ -282,7 +284,11 @@ const SingleEmailItem = React.forwardRef<HTMLDivElement, SingleEmailItemProps>(
                   )}
                   {email.hasAttachment && <Paperclip className="w-3.5 h-3.5 text-muted-foreground" />}
                   {resolvedKeywordDefs.map((kd) => (
-                    <span key={kd.id} className={cn('h-2.5 w-2.5 rounded-full', KEYWORD_PALETTE[kd.color]?.dot || 'bg-gray-400')} />
+                    <span
+                      key={kd.id}
+                      className={cn('h-2.5 w-2.5 rounded-full', KEYWORD_PALETTE[kd.color]?.dot || 'bg-gray-400')}
+                      title={tagName(kd.id)}
+                    />
                   ))}
                   {showSourceFolder && <SourceFolderTag name={email.sourceFolder!} />}
                   {scheduledSendLabel ? (
@@ -351,7 +357,7 @@ const SingleEmailItem = React.forwardRef<HTMLDivElement, SingleEmailItemProps>(
                       <span key={kd.id} className={cn(
                         "inline-flex items-center gap-1 px-1.5 py-0.5 text-[10px] font-medium rounded-full",
                         KEYWORD_PALETTE[kd.color]?.bg || "bg-muted"
-                      )}>
+                      )} title={tagName(kd.id)}>
                         <span className={cn("w-1.5 h-1.5 rounded-full", KEYWORD_PALETTE[kd.color]?.dot || "bg-gray-400")} />
                         {kd.label}
                       </span>
@@ -499,7 +505,8 @@ export const ThreadListItem = React.forwardRef<HTMLDivElement, ThreadListItemPro
 
     const threadColor = getThreadColorTag(thread.emails);
     const emailKeywordDefs = useSettingsStore((state) => state.emailKeywords);
-    const tintListRowsByTag = useSettingsStore((state) => state.tintListRowsByTag);
+    const { tagName } = useKeywordFormat();
+      const tintListRowsByTag = useSettingsStore((state) => state.tintListRowsByTag);
     const keywordDef = threadColor ? (emailKeywordDefs.find(k => k.id === threadColor) ?? { id: threadColor, label: threadColor, color: 'gray' }) : null;
     const colorTag = (tintListRowsByTag && keywordDef) ? KEYWORD_PALETTE[keywordDef.color]?.bg ?? null : null;
 
@@ -746,7 +753,10 @@ export const ThreadListItem = React.forwardRef<HTMLDivElement, ThreadListItemPro
                     )}
                     {hasAttachment && <Paperclip className="w-3.5 h-3.5 text-muted-foreground" />}
                     {keywordDef && (
-                      <span className={cn('h-2.5 w-2.5 rounded-full', KEYWORD_PALETTE[keywordDef.color]?.dot || 'bg-gray-400')} />
+                      <span
+                        className={cn('h-2.5 w-2.5 rounded-full', KEYWORD_PALETTE[keywordDef.color]?.dot || 'bg-gray-400')}
+                        title={tagName(keywordDef.id)}
+                      />
                     )}
                     {showSourceFolder && <SourceFolderTag name={latestEmail.sourceFolder!} />}
                     {scheduledSendLabel ? (
@@ -827,7 +837,7 @@ export const ThreadListItem = React.forwardRef<HTMLDivElement, ThreadListItemPro
                         <span className={cn(
                           "inline-flex items-center gap-1 px-1.5 py-0.5 text-[10px] font-medium rounded-full",
                           KEYWORD_PALETTE[keywordDef.color]?.bg || "bg-muted"
-                        )}>
+                        )} title={tagName(keywordDef.id)}>
                           <span className={cn("w-1.5 h-1.5 rounded-full", KEYWORD_PALETTE[keywordDef.color]?.dot || "bg-gray-400")} />
                           {keywordDef.label}
                         </span>
diff --git a/components/filters/filter-rule-modal.tsx b/components/filters/filter-rule-modal.tsx
index 221a6e7a..cca7a279 100644
--- a/components/filters/filter-rule-modal.tsx
+++ b/components/filters/filter-rule-modal.tsx
@@ -18,6 +18,7 @@ import type {
 import type { Mailbox } from "@/lib/jmap/types";
 import { buildMailboxTree, flattenMailboxTree, type MailboxNode, generateUUID } from "@/lib/utils";
 import { useSettingsStore } from "@/stores/settings-store";
+import { useKeywordFormat } from "@/hooks/use-keyword-format";
 
 interface FilterRuleModalProps {
   rule?: FilterRule;
@@ -89,6 +90,7 @@ export function FilterRuleModal({
   const t = useTranslations("settings.filters");
   const isEdit = !!rule;
   const emailKeywords = useSettingsStore((state) => state.emailKeywords);
+  const { tagName } = useKeywordFormat();
 
   const [name, setName] = useState(rule?.name || "");
   const [matchType, setMatchType] = useState<"all" | "any">(rule?.matchType || "all");
@@ -477,7 +479,7 @@ export function FilterRuleModal({
                     >
                       <option value="">{t("label_placeholder")}</option>
                       {emailKeywords.map((kw) => (
-                        <option key={kw.id} value={kw.id}>{kw.label}</option>
+                        <option key={kw.id} value={kw.id}>{tagName(kw.id)}</option>
                       ))}
                     </select>
                   )}
diff --git a/components/layout/sidebar.tsx b/components/layout/sidebar.tsx
index bc61bcc6..06a9b662 100644
--- a/components/layout/sidebar.tsx
+++ b/components/layout/sidebar.tsx
@@ -38,6 +38,9 @@ import {
 } from "lucide-react";
 import { cn, buildMailboxTree, MailboxNode } from "@/lib/utils";
 import { localizeMailboxName } from "@/lib/mailbox-label";
+import { buildKeywordTree, hasChildKeywords, type KeywordNode } from "@/lib/keyword-nesting";
+import { useShortenedText } from "@/hooks/use-shortened-text";
+import { useKeywordFormat } from "@/hooks/use-keyword-format";
 import { isEditableEventTarget } from "@/lib/keyboard";
 import { Mailbox } from "@/lib/jmap/types";
 import { useContextMenu } from "@/hooks/use-context-menu";
@@ -51,7 +54,7 @@ import { useTagDrop } from "@/hooks/use-tag-drop";
 import { useUIStore } from "@/stores/ui-store";
 import { useAuthStore } from "@/stores/auth-store";
 import { useVacationStore } from "@/stores/vacation-store";
-import { useSettingsStore, KEYWORD_PALETTE, KeywordDefinition } from "@/stores/settings-store";
+import { useSettingsStore, KEYWORD_PALETTE } from "@/stores/settings-store";
 import { useEmailStore } from "@/stores/email-store";
 import { toast } from "@/stores/toast-store";
 import { debug } from "@/lib/debug";
@@ -241,6 +244,9 @@ function SidebarRowCounts({
 interface SidebarRowProps {
   icon: ReactNode;
   label: string;
+  /** Progressively shorter renderings of `label`, longest first. The widest one
+   *  that fits the row is shown; without this the full label is used. */
+  labelCandidates?: string[];
   depth?: number;
   isSelected?: boolean;
   isVirtual?: boolean;
@@ -266,6 +272,7 @@ interface SidebarRowProps {
 function SidebarRow({
   icon,
   label,
+  labelCandidates,
   depth = 0,
   isSelected = false,
   isVirtual = false,
@@ -288,6 +295,7 @@ function SidebarRow({
 }: SidebarRowProps) {
   const t = useTranslations('sidebar');
   const leftPad = isCollapsed ? 0 : ROW_PX_BASE + depth * INDENT_STEP;
+  const [labelRef, shortenedLabel] = useShortenedText(labelCandidates ?? [label]);
 
   return (
     <div
@@ -353,7 +361,7 @@ function SidebarRow({
         </span>
         {!isCollapsed && (
           <>
-            <span className="flex-1 truncate">{label}</span>
+            <span ref={labelRef} className="flex-1 truncate">{shortenedLabel}</span>
             <SidebarRowCounts
               unread={unread}
               total={total}
@@ -559,42 +567,54 @@ const TAG_ICON_COLOR: Record<string, string> = {
 };
 
 function TagItem({
-  kw,
-  isSelected,
+  node,
+  selectedKeyword,
+  expandedTags,
   isCollapsed,
   onTagSelect,
-  totalCount,
-  unreadCount,
+  onToggleExpand,
+  tagCounts,
   colorful,
 }: {
-  kw: KeywordDefinition;
-  isSelected: boolean;
+  node: KeywordNode;
+  selectedKeyword: string | null;
+  expandedTags: Set<string>;
   isCollapsed: boolean;
   onTagSelect?: (keywordId: string | null) => void;
-  totalCount: number;
-  unreadCount: number;
+  onToggleExpand: (keywordId: string) => void;
+  tagCounts: Record<string, { total: number; unread: number }>;
   colorful: boolean;
 }) {
   const t = useTranslations('notifications');
-  const palette = KEYWORD_PALETTE[kw.color];
+  const { tagNameCandidates } = useKeywordFormat();
+  const palette = KEYWORD_PALETTE[node.color];
+  const hasChildren = node.children.length > 0;
+  const isExpanded = expandedTags.has(node.id);
+  const isSelected = selectedKeyword === node.id;
+  // Nested rows are placed by their indentation, so they show their own name.
+  // A root spells out its path, which matters when an intermediate tag is
+  // missing from this client's settings and the row would otherwise read as a
+  // bare leaf name. Toasts have the room for the whole thing.
+  const labelCandidates = node.depth === 0 ? tagNameCandidates(node.id) : [node.label];
+  const label = labelCandidates[0];
   const { isDragging: globalDragging } = useDragDropContext();
   const { dropHandlers, isValidDropTarget } = useTagDrop({
-    tagId: kw.id,
-    onSuccess: (count, _tagLabel) => {
+    tagId: node.id,
+    onSuccess: (count) => {
       if (count === 1) {
-        toast.success(t('email_tagged'), kw.label);
+        toast.success(t('email_tagged'), label);
       } else {
-        toast.success(t('emails_tagged', { count }), kw.label);
+        toast.success(t('emails_tagged', { count }), label);
       }
     },
     onError: () => {
-      toast.error(t('tag_failed'), kw.label);
+      toast.error(t('tag_failed'), label);
     },
   });
 
   const tagIcon = colorful ? (
     <Tag
-      className={cn("w-4 h-4 flex-shrink-0", TAG_ICON_COLOR[kw.color] || "text-muted-foreground")}
+      className={cn("w-4 h-4 flex-shrink-0", TAG_ICON_COLOR[node.color] || "text-muted-foreground")}
       fill="currentColor"
     />
   ) : (
@@ -602,18 +622,38 @@ function TagItem({
   );
 
   return (
-    <SidebarRow
-      icon={tagIcon}
-      label={kw.label}
-      depth={0}
-      isSelected={isSelected}
-      unread={unreadCount}
-      total={totalCount}
-      onClick={() => onTagSelect?.(isSelected ? null : kw.id)}
-      isCollapsed={isCollapsed}
-      dropHandlers={globalDragging ? (dropHandlers as Record<string, unknown>) : undefined}
-      isValidDropTarget={isValidDropTarget}
-    />
+    <>
+      <SidebarRow
+        icon={tagIcon}
+        label={label}
+        labelCandidates={labelCandidates}
+        depth={node.depth}
+        isSelected={isSelected}
+        unread={tagCounts[node.id]?.unread ?? 0}
+        total={tagCounts[node.id]?.total ?? 0}
+        onClick={() => onTagSelect?.(isSelected ? null : node.id)}
+        hasChildren={hasChildren}
+        isExpanded={isExpanded}
+        onExpandToggle={() => onToggleExpand(node.id)}
+        isCollapsed={isCollapsed}
+        dropHandlers={globalDragging ? (dropHandlers as Record<string, unknown>) : undefined}
+        isValidDropTarget={isValidDropTarget}
+      />
+
+      {hasChildren && isExpanded && !isCollapsed && node.children.map((child) => (
+        <TagItem
+          key={child.id}
+          node={child}
+          selectedKeyword={selectedKeyword}
+          expandedTags={expandedTags}
+          isCollapsed={isCollapsed}
+          onTagSelect={onTagSelect}
+          onToggleExpand={onToggleExpand}
+          tagCounts={tagCounts}
+          colorful={colorful}
+        />
+      ))}
+    </>
   );
 }
 
@@ -737,6 +777,7 @@ export function Sidebar({
   const { sidebarCollapsed: isCollapsed, toggleSidebarCollapsed } = useUIStore();
   const { primaryIdentity: _primaryIdentity, activeAccountId } = useAuthStore();
   const [expandedFolders, setExpandedFolders] = useState<Set<string>>(new Set());
+  const [expandedTags, setExpandedTags] = useState<Set<string>>(new Set());
   const [foldersExpanded, setFoldersExpanded] = useState(() => {
     try {
       const stored = localStorage.getItem('sidebarFoldersExpanded');
@@ -779,6 +820,7 @@ export function Sidebar({
     return new Set();
   });
   const emailKeywords = useSettingsStore(s => s.emailKeywords);
+  const nestedTags = useSettingsStore(s => s.nestedTags);
   const isEmbedded = useIsEmbedded();
   // The Pro shell owns the global chrome (rail + tab bar), so the sidebar's
   // own AccountSwitcher would be a redundant second account UI in the same
@@ -842,6 +884,37 @@ export function Sidebar({
     });
   };
 
+  useEffect(() => {
+    const stored = localStorage.getItem('expandedTags');
+    if (stored) {
+      try {
+        const parsed = JSON.parse(stored);
+        setExpandedTags(new Set(parsed));
+      } catch (e) {
+        debug.error('Failed to parse expanded tags:', e);
+      }
+    } else {
+      setExpandedTags(
+        new Set(emailKeywords.filter((kw) => hasChildKeywords(kw.id, emailKeywords)).map((kw) => kw.id))
+      );
+    }
+  }, [emailKeywords]);
+
+  const handleToggleTagExpand = (keywordId: string) => {
+    setExpandedTags((prev) => {
+      const next = new Set(prev);
+      if (next.has(keywordId)) {
+        next.delete(keywordId);
+      } else {
+        next.add(keywordId);
+      }
+      try {
+        localStorage.setItem('expandedTags', JSON.stringify(Array.from(next)));
+      } catch { /* storage full or unavailable */ }
+      return next;
+    });
+  };
+
   // When the app renders its own virtual "Scheduled" folder (for delayed
   // sends, driven by EmailSubmission), hide the server-provided scheduled
   // mailbox (e.g. Stalwart's auto-created Scheduled folder, role === 'scheduled')
@@ -852,6 +925,13 @@ export function Sidebar({
   const ownTree = mailboxTree.filter(n => !n.id.startsWith('shared-account-') && !isServerScheduledNode(n));
   const sharedAccounts = mailboxTree.filter(n => n.id.startsWith('shared-account-'));
 
+  // With nesting off every tag is its own root, so the same rows render through
+  // one path whether or not the ids describe a hierarchy.
+  const tagTree: KeywordNode[] = nestedTags
+    ? buildKeywordTree(emailKeywords)
+    : emailKeywords.map((kw) => ({ ...kw, children: [], depth: 0 }));
+
+
   // Multi-account mode (Pro shell): render every connected account as its
   // own collapsible group. The active account's tree comes from the
   // `mailboxes` prop (which is the live email-store value); other accounts
@@ -1265,15 +1345,16 @@ export function Sidebar({
             />
             {((tagsExpanded && !isCollapsed) || isCollapsed) && (
               <>
-                {emailKeywords.map((kw) => (
+                {tagTree.map((node) => (
                   <TagItem
-                    key={kw.id}
-                    kw={kw}
-                    isSelected={selectedKeyword === kw.id}
+                    key={node.id}
+                    node={node}
+                    selectedKeyword={selectedKeyword}
+                    expandedTags={expandedTags}
                     isCollapsed={isCollapsed}
                     onTagSelect={onTagSelect}
-                    totalCount={tagCounts[kw.id]?.total ?? 0}
-                    unreadCount={tagCounts[kw.id]?.unread ?? 0}
+                    onToggleExpand={handleToggleTagExpand}
+                    tagCounts={tagCounts}
                     colorful={colorfulSidebarIcons}
                   />
                 ))}
diff --git a/components/settings/__tests__/keyword-settings.test.tsx b/components/settings/__tests__/keyword-settings.test.tsx
index 1c3c5f94..8593c41f 100644
--- a/components/settings/__tests__/keyword-settings.test.tsx
+++ b/components/settings/__tests__/keyword-settings.test.tsx
@@ -3,14 +3,15 @@ import { describe, it, expect, vi, beforeEach } from 'vitest';
 import { KeywordSettings } from '../keyword-settings';
 import { useSettingsStore, DEFAULT_KEYWORDS } from '@/stores/settings-store';
 
-// Mock SettingsSection to just render children
-vi.mock('../settings-section', () => ({
+// Mock SettingsSection to just render children, keeping the real controls
+vi.mock('../settings-section', async (importOriginal) => ({
+  ...(await importOriginal<typeof import('../settings-section')>()),
   SettingsSection: ({ children }: { children: React.ReactNode }) => <div>{children}</div>,
 }));
 
 describe('KeywordSettings', () => {
   beforeEach(() => {
-    useSettingsStore.setState({ emailKeywords: [...DEFAULT_KEYWORDS] });
+    useSettingsStore.setState({ emailKeywords: [...DEFAULT_KEYWORDS], nestedTags: false });
   });
 
   it('renders all default keywords', () => {
@@ -139,4 +140,74 @@ describe('KeywordSettings', () => {
     expect(added.id).toBe('my-custom-tag');
     expect(added.label).toBe('My Custom Tag!');
   });
+
+  it('offers no parent picker while nesting is off', () => {
+    render(<KeywordSettings />);
+    fireEvent.click(screen.getByText('add_keyword'));
+
+    expect(screen.queryByLabelText('parent_field')).not.toBeInTheDocument();
+  });
+
+  it('nests a new tag under the selected parent', () => {
+    useSettingsStore.setState({
+      emailKeywords: [{ id: 'work', label: 'Work', color: 'blue' }],
+      nestedTags: true,
+    });
+    render(<KeywordSettings />);
+    fireEvent.click(screen.getByText('add_keyword'));
+
+    fireEvent.change(screen.getByLabelText('parent_field'), { target: { value: 'work' } });
+    fireEvent.change(screen.getByPlaceholderText('label_placeholder'), { target: { value: 'Clients' } });
+    fireEvent.click(screen.getByText('add'));
+
+    const keywords = useSettingsStore.getState().emailKeywords;
+    expect(keywords[keywords.length - 1]).toMatchObject({ id: 'work/clients', label: 'Clients' });
+  });
+
+  it('shows nested tags by their full path', () => {
+    useSettingsStore.setState({
+      emailKeywords: [
+        { id: 'work', label: 'Work', color: 'blue' },
+        { id: 'work/clients', label: 'Clients', color: 'green' },
+      ],
+      nestedTags: true,
+    });
+    render(<KeywordSettings />);
+
+    expect(screen.getByText('Work/Clients')).toBeInTheDocument();
+    expect(screen.getByText('$label:work/clients')).toBeInTheDocument();
+  });
+
+  it('rejects a path that would exceed the keyword length limit', () => {
+    const deepId = 'a'.repeat(240);
+    useSettingsStore.setState({
+      emailKeywords: [{ id: deepId, label: 'Deep', color: 'blue' }],
+      nestedTags: true,
+    });
+    render(<KeywordSettings />);
+    fireEvent.click(screen.getByText('add_keyword'));
+
+    fireEvent.change(screen.getByLabelText('parent_field'), { target: { value: deepId } });
+    fireEvent.change(screen.getByPlaceholderText('label_placeholder'), { target: { value: 'Overflowing name' } });
+
+    expect(screen.getByText('too_long')).toBeInTheDocument();
+    expect(screen.getByText('add').closest('button')).toBeDisabled();
+  });
+
+  it('locks the name and the delete action of a tag that has nested tags', () => {
+    useSettingsStore.setState({
+      emailKeywords: [
+        { id: 'work', label: 'Work', color: 'blue' },
+        { id: 'work/clients', label: 'Clients', color: 'green' },
+      ],
+      nestedTags: true,
+    });
+    render(<KeywordSettings />);
+
+    expect(screen.getByTitle('has_children_delete')).toBeDisabled();
+
+    fireEvent.click(screen.getAllByTitle('edit')[0]);
+    expect(screen.getByDisplayValue('Work')).toBeDisabled();
+    expect(screen.getByText('has_children_locked')).toBeInTheDocument();
+  });
 });
diff --git a/components/settings/keyword-settings.tsx b/components/settings/keyword-settings.tsx
index c4fcdb2d..cd6f408f 100644
--- a/components/settings/keyword-settings.tsx
+++ b/components/settings/keyword-settings.tsx
@@ -2,12 +2,30 @@
 
 import React, { useState } from "react";
 import { useTranslations } from "next-intl";
-import { useSettingsStore, KEYWORD_PALETTE, DEFAULT_KEYWORDS, type KeywordDefinition } from "@/stores/settings-store";
+import {
+  useSettingsStore,
+  KEYWORD_PALETTE,
+  DEFAULT_KEYWORDS,
+  type KeywordDefinition,
+} from "@/stores/settings-store";
 import { useAuthStore } from "@/stores/auth-store";
 import { useEmailStore } from "@/stores/email-store";
-import { SettingsSection } from "./settings-section";
+import { SettingsSection, SettingItem, ToggleSwitch, Select } from "./settings-section";
 import { Plus, Pencil, Trash2, GripVertical, Check, X, RotateCcw, Loader2 } from "lucide-react";
 import { cn } from "@/lib/utils";
+import { KEYWORD_PREFIX } from "@/lib/thread-utils";
+import {
+  buildKeywordTree,
+  composeKeywordId,
+  getParentKeywordId,
+  hasChildKeywords,
+  isKeywordDescendant,
+  keywordLevels,
+  type KeywordNode,
+  MAX_KEYWORD_ID_LENGTH,
+} from "@/lib/keyword-nesting";
+import { formatKeyword, formatKeywordLabels, keywordRenderings } from "@/lib/keyword-format";
+import { useShortenedText } from "@/hooks/use-shortened-text";
 
 const PALETTE_KEYS = Object.keys(KEYWORD_PALETTE);
 
@@ -39,6 +57,8 @@ function KeywordColorPicker({
 
 function KeywordRow({
   keyword,
+  keywords,
+  nestedTags,
   onEdit,
   onDelete,
   onDragStart,
@@ -49,6 +69,8 @@ function KeywordRow({
   isDragging,
 }: {
   keyword: KeywordDefinition;
+  keywords: KeywordDefinition[];
+  nestedTags: boolean;
   onEdit: () => void;
   onDelete: () => void;
   onDragStart: () => void;
@@ -60,6 +82,13 @@ function KeywordRow({
 }) {
   const t = useTranslations("settings.keywords");
   const palette = KEYWORD_PALETTE[keyword.color];
+  const hasChildren = hasChildKeywords(keyword.id, keywords);
+  const nameCandidates = keywordRenderings(formatKeywordLabels(keyword.id, keywords, nestedTags));
+  const [nameRef, shortenedName] = useShortenedText(nameCandidates);
+  // Measured with the prefix attached, since that is what occupies the column.
+  const keywordCandidates = (nestedTags ? keywordRenderings(keywordLevels(keyword.id)) : [keyword.id])
+    .map((rendering) => KEYWORD_PREFIX + rendering);
+  const [keywordRef, shortenedKeyword] = useShortenedText(keywordCandidates);
 
   return (
     <div
@@ -76,8 +105,20 @@ function KeywordRow({
     >
       <GripVertical className="w-4 h-4 text-muted-foreground opacity-0 group-hover:opacity-50 cursor-grab" />
       <div className={cn("w-5 h-5 rounded-full shrink-0", palette?.dot || "bg-gray-500")} />
-      <span className="flex-1 text-sm font-medium truncate">{keyword.label}</span>
-      <span className="text-xs text-muted-foreground font-mono">{"$label:" + keyword.id}</span>
+      <span
+        ref={nameRef}
+        className="flex-1 min-w-0 text-sm font-medium truncate"
+        title={formatKeyword(keyword.id, keywords, nestedTags)}
+      >
+        {shortenedName}
+      </span>
+      <span
+        ref={keywordRef}
+        className="hidden md:block min-w-0 max-w-52 truncate text-xs text-muted-foreground font-mono"
+        title={KEYWORD_PREFIX + keyword.id}
+      >
+        {shortenedKeyword}
+      </span>
       <div className="flex items-center gap-1 opacity-0 group-hover:opacity-100 transition-opacity">
         <button
           type="button"
@@ -90,8 +131,9 @@ function KeywordRow({
         <button
           type="button"
           onClick={onDelete}
-          className="p-1.5 rounded-md hover:bg-destructive/10 text-muted-foreground hover:text-destructive transition-colors"
-          title={t("delete")}
+          disabled={hasChildren}
+          className="p-1.5 rounded-md hover:bg-destructive/10 text-muted-foreground hover:text-destructive transition-colors disabled:opacity-40 disabled:hover:bg-transparent disabled:hover:text-muted-foreground"
+          title={hasChildren ? t("has_children_delete") : t("delete")}
         >
           <Trash2 className="w-3.5 h-3.5" />
         </button>
@@ -102,37 +144,74 @@ function KeywordRow({
 
 function KeywordEditForm({
   initial,
+  keywords,
   existingIds,
+  nestedTags,
   onSave,
   onCancel,
 }: {
   initial?: KeywordDefinition;
+  keywords: KeywordDefinition[];
   existingIds: string[];
+  nestedTags: boolean;
   onSave: (keyword: KeywordDefinition) => void;
   onCancel: () => void;
 }) {
   const t = useTranslations("settings.keywords");
   const [label, setLabel] = useState(initial?.label || "");
   const [color, setColor] = useState(initial?.color || "blue");
+  const [parentId, setParentId] = useState(initial ? getParentKeywordId(initial.id) ?? "" : "");
   const isEditing = !!initial;
 
-  const normalizedId = label
-    .trim()
-    .toLowerCase()
-    .replace(/[^a-z0-9_-]/g, "-")
-    .replace(/-+/g, "-")
-    .replace(/^-|-$/g, "");
+  // Renaming or re-parenting a tag rewrites the keyword on every message below
+  // it, and this client only knows about the tags in its own settings - the
+  // server may hold nested keywords created elsewhere. Freeze the identity of a
+  // tag that has children and allow the color to change.
+  const isLocked = !!initial && hasChildKeywords(initial.id, keywords);
 
+  const normalizedId = isLocked && initial ? initial.id : composeKeywordId(parentId || null, label);
   const isDuplicate = normalizedId.length > 0 && existingIds.includes(normalizedId);
-  const isValid = normalizedId.length > 0 && label.trim().length > 0 && !isDuplicate;
+  const isTooLong = normalizedId.length > MAX_KEYWORD_ID_LENGTH;
+  const isValid = normalizedId.length > 0 && label.trim().length > 0 && !isDuplicate && !isTooLong;
+
+  // Every tag is a candidate parent except the one being edited and anything
+  // already below it, which would detach the branch from its own root.
+  const parentOptions: { value: string; label: string }[] = [{ value: "", label: t("no_parent") }];
+  const collectParentOptions = (nodes: KeywordNode[]) => {
+    for (const node of nodes) {
+      if (initial && (node.id === initial.id || isKeywordDescendant(node.id, initial.id))) continue;
+      parentOptions.push({ value: node.id, label: formatKeyword(node.id, keywords, true) });
+      collectParentOptions(node.children);
+    }
+  };
+  collectParentOptions(buildKeywordTree(keywords));
 
   const handleSave = () => {
     if (!isValid) return;
+    if (isLocked && initial) {
+      onSave({ ...initial, color });
+      return;
+    }
     onSave({ id: normalizedId, label: label.trim(), color });
   };
 
   return (
     <div className="space-y-3 p-3 rounded-md border border-primary/30 bg-accent/30">
+      {nestedTags && (
+        <div>
+          <label className="text-xs font-medium text-muted-foreground mb-1 block">
+            {t("parent_field")}
+          </label>
+          <Select
+            value={parentId}
+            onChange={setParentId}
+            options={parentOptions}
+            disabled={isLocked}
+            ariaLabel={t("parent_field")}
+            className="w-full"
+          />
+        </div>
+      )}
       <div>
         <label className="text-xs font-medium text-muted-foreground mb-1 block">
           {t("label_field")}
@@ -141,15 +220,29 @@ function KeywordEditForm({
           type="text"
           value={label}
           onChange={(e) => setLabel(e.target.value)}
-          className="w-full px-2.5 py-1.5 text-sm rounded-md border border-border bg-background focus:outline-none focus:ring-2 focus:ring-ring"
+          disabled={isLocked}
+          className="w-full px-2.5 py-1.5 text-sm rounded-md border border-border bg-background focus:outline-none focus:ring-2 focus:ring-ring disabled:opacity-60"
           placeholder={t("label_placeholder")}
           autoFocus
           maxLength={30}
           onKeyDown={(e) => e.key === "Enter" && handleSave()}
         />
+        {nestedTags && normalizedId.length > 0 && (
+          <p className="text-xs text-muted-foreground font-mono mt-1 break-all">
+            {KEYWORD_PREFIX + normalizedId}
+          </p>
+        )}
+        {isLocked && (
+          <p className="text-xs text-muted-foreground mt-1">{t("has_children_locked")}</p>
+        )}
         {isDuplicate && (
           <p className="text-xs text-destructive mt-1">{t("id_exists")}</p>
         )}
+        {isTooLong && (
+          <p className="text-xs text-destructive mt-1">
+            {t("too_long", { max: MAX_KEYWORD_ID_LENGTH })}
+          </p>
+        )}
       </div>
       <div>
         <label className="text-xs font-medium text-muted-foreground mb-1.5 block">
@@ -182,7 +275,7 @@ function KeywordEditForm({
 
 export function KeywordSettings() {
   const t = useTranslations("settings.keywords");
-  const { emailKeywords, addKeyword, updateKeyword, renameKeyword, removeKeyword, reorderKeywords } =
+  const { emailKeywords, nestedTags, addKeyword, updateKeyword, renameKeyword, removeKeyword, reorderKeywords, updateSetting } =
     useSettingsStore();
   const { client } = useAuthStore();
   const { fetchTagCounts } = useEmailStore();
@@ -266,6 +359,13 @@ export function KeywordSettings() {
 
   return (
     <SettingsSection title={t("title")} description={t("description")}>
+      <SettingItem label={t("nesting.label")} description={t("nesting.description")}>
+        <ToggleSwitch
+          checked={nestedTags}
+          onChange={(checked) => updateSetting("nestedTags", checked)}
+        />
+      </SettingItem>
+
       <div className="space-y-2">
         {isMigrating && (
           <div className="flex items-center gap-2 p-2 text-xs text-muted-foreground bg-accent/50 rounded-md">
@@ -278,7 +378,9 @@ export function KeywordSettings() {
             <KeywordEditForm
               key={keyword.id}
               initial={keyword}
+              keywords={emailKeywords}
               existingIds={existingIds.filter((id) => id !== keyword.id)}
+              nestedTags={nestedTags}
               onSave={handleEdit}
               onCancel={() => setEditingId(null)}
             />
@@ -286,6 +388,8 @@ export function KeywordSettings() {
             <KeywordRow
               key={keyword.id}
               keyword={keyword}
+              keywords={emailKeywords}
+              nestedTags={nestedTags}
               onEdit={() => {
                 setEditingId(keyword.id);
                 setIsAdding(false);
@@ -303,7 +407,9 @@ export function KeywordSettings() {
 
         {isAdding ? (
           <KeywordEditForm
+            keywords={emailKeywords}
             existingIds={existingIds}
+            nestedTags={nestedTags}
             onSave={handleAdd}
             onCancel={() => setIsAdding(false)}
           />
diff --git a/components/settings/settings-section.tsx b/components/settings/settings-section.tsx
index 64d79a0b..1815f614 100644
--- a/components/settings/settings-section.tsx
+++ b/components/settings/settings-section.tsx
@@ -111,15 +111,24 @@ interface SelectProps {
   value: string;
   onChange: (value: string) => void;
   options: { value: string; label: string }[];
+  disabled?: boolean;
+  className?: string;
+  ariaLabel?: string;
 }
 
-export function Select({ value, onChange, options }: SelectProps) {
+export function Select({ value, onChange, options, disabled, className, ariaLabel }: SelectProps) {
   return (
     <select
       value={value}
       onChange={(e) => onChange(e.target.value)}
+      disabled={disabled}
+      aria-label={ariaLabel}
       dir="auto"
-      className="px-3 py-1.5 text-sm rounded-md bg-muted border border-border text-foreground focus:outline-none focus:ring-2 focus:ring-ring transition-colors duration-150 cursor-pointer hover:border-muted-foreground"
+      className={cn(
+        "px-3 py-1.5 text-sm rounded-md bg-muted border border-border text-foreground focus:outline-none focus:ring-2 focus:ring-ring transition-colors duration-150",
+        disabled ? "opacity-60 cursor-not-allowed" : "cursor-pointer hover:border-muted-foreground",
+        className
+      )}
     >
       {options.map((option) => (
         <option key={option.value} value={option.value}>
diff --git a/hooks/__tests__/use-shortened-text.test.tsx b/hooks/__tests__/use-shortened-text.test.tsx
new file mode 100644
index 00000000..6a98de2b
--- /dev/null
+++ b/hooks/__tests__/use-shortened-text.test.tsx
@@ -0,0 +1,70 @@
+import { render, screen } from '@testing-library/react';
+import { describe, it, expect, afterEach, vi } from 'vitest';
+import { useShortenedText } from '../use-shortened-text';
+
+const CANDIDATES = ['Work/Clients/Acme/Sales', 'Work/../Acme/Sales', 'Work/.../Sales'];
+
+/**
+ * Reports `width` for the observed element and measures text at 10px per
+ * character, so a width of N*10 fits any candidate of N characters or fewer.
+ */
+function stubMeasurement(width: number) {
+  // Implementing the interface rather than passing an anonymous class keeps the
+  // members the hook never calls from reading as dead code.
+  class StubResizeObserver implements ResizeObserver {
+    constructor(private readonly callback: ResizeObserverCallback) {}
+
+    /** The hook observes once on mount; hand it `width` straight back. */
+    observe(target: Element) {
+      this.callback([{ target, contentRect: { width } } as unknown as ResizeObserverEntry], this);
+    }
+
+    unobserve() {}
+
+    disconnect() {}
+  }
+
+  vi.stubGlobal('ResizeObserver', StubResizeObserver);
+  vi.spyOn(HTMLCanvasElement.prototype, 'getContext').mockReturnValue({
+    font: '',
+    measureText: (text: string) => ({ width: text.length * 10 }),
+  } as unknown as CanvasRenderingContext2D);
+}
+
+function Probe({ candidates }: { candidates: string[] }) {
+  const [ref, text] = useShortenedText(candidates);
+  return <span ref={ref} data-testid="probe">{text}</span>;
+}
+
+function renderProbe(candidates: string[]): string {
+  render(<Probe candidates={candidates} />);
+  return screen.getByTestId('probe').textContent ?? '';
+}
+
+describe('useShortenedText', () => {
+  afterEach(() => {
+    vi.unstubAllGlobals();
+    vi.restoreAllMocks();
+  });
+
+  it('returns the longest candidate where the DOM cannot be measured', () => {
+    // No ResizeObserver: server rendering, and jsdom by default. Showing the
+    // whole path beats shortening it on a guess.
+    expect(renderProbe(CANDIDATES)).toBe('Work/Clients/Acme/Sales');
+  });
+
+  it('keeps the full path when the element is wide enough', () => {
+    stubMeasurement(230);
+    expect(renderProbe(CANDIDATES)).toBe('Work/Clients/Acme/Sales');
+  });
+
+  it('steps down only as far as the width requires', () => {
+    stubMeasurement(200);
+    expect(renderProbe(CANDIDATES)).toBe('Work/../Acme/Sales');
+  });
+
+  it('falls back to the shortest candidate when none of them fit', () => {
+    stubMeasurement(40);
+    expect(renderProbe(CANDIDATES)).toBe('Work/.../Sales');
+  });
+});
diff --git a/hooks/use-keyword-format.ts b/hooks/use-keyword-format.ts
new file mode 100644
index 00000000..f0f0b862
--- /dev/null
+++ b/hooks/use-keyword-format.ts
@@ -0,0 +1,30 @@
+"use client";
+
+import { useMemo } from "react";
+import { useSettingsStore } from "@/stores/settings-store";
+import { formatKeyword, formatKeywordLabels, keywordRenderings } from "@/lib/keyword-format";
+
+/**
+ * Names tags for the screen, bound to the user's tag settings.
+ *
+ * Resolving the definitions and the nesting setting here rather than at every
+ * call site means no caller can forget the setting and render a nested name to
+ * someone who never asked for nesting. Subscribing to it also keeps names in
+ * step the moment it is toggled: reading it straight from the store inside the
+ * formatter would leave every list showing stale names until something else
+ * happened to re-render them.
+ */
+export function useKeywordFormat() {
+  const keywords = useSettingsStore((state) => state.emailKeywords);
+  const nested = useSettingsStore((state) => state.nestedTags);
+
+  return useMemo(
+    () => ({
+      /** The tag's display name. */
+      tagName: (id: string) => formatKeyword(id, keywords, nested),
+      /** Its progressively shorter forms, longest first, for `useShortenedText`. */
+      tagNameCandidates: (id: string) => keywordRenderings(formatKeywordLabels(id, keywords, nested)),
+    }),
+    [keywords, nested],
+  );
+}
diff --git a/hooks/use-shortened-text.ts b/hooks/use-shortened-text.ts
new file mode 100644
index 00000000..f466982f
--- /dev/null
+++ b/hooks/use-shortened-text.ts
@@ -0,0 +1,76 @@
+"use client";
+
+import { useEffect, useMemo, useState } from "react";
+
+/**
+ * Measures text the way the browser will, using the font the element actually
+ * renders with. One canvas is reused for every measurement.
+ */
+let measureContext: CanvasRenderingContext2D | null | undefined;
+
+function measureText(text: string, font: string): number {
+  if (measureContext === undefined) {
+    measureContext = document.createElement("canvas").getContext("2d");
+  }
+  if (!measureContext) return 0;
+  measureContext.font = font;
+  return measureContext.measureText(text).width;
+}
+
+/**
+ * Picks the first of `candidates` that fits the element the returned ref is
+ * attached to, remeasuring whenever that element is resized.
+ *
+ * Candidates run longest first, so the result is the most complete one there is
+ * room for. A character budget cannot do this job: the columns this is used in
+ * are resized by the user and share their row with controls whose width depends
+ * on the locale, so any fixed number is either so generous that it never
+ * triggers or so tight that it shortens text that would have fit.
+ *
+ * Attach the ref to an element whose width does *not* depend on its own text -
+ * a flex child that is allowed to shrink, i.e. one with `truncate` or
+ * `min-w-0`. On anything else, picking a shorter candidate would change the
+ * width that picked it and the two would oscillate.
+ *
+ * Where measurement is unavailable - server rendering, and jsdom under test -
+ * this returns the first candidate, so the text is complete rather than
+ * arbitrarily shortened.
+ */
+export function useShortenedText(
+  candidates: string[],
+): [(node: HTMLElement | null) => void, string] {
+  const [element, setElement] = useState<HTMLElement | null>(null);
+  const [box, setBox] = useState<{ width: number; font: string } | null>(null);
+
+  useEffect(() => {
+    if (!element || typeof ResizeObserver === "undefined") return;
+
+    const observer = new ResizeObserver((entries) => {
+      const entry = entries[0];
+      if (!entry) return;
+      const style = window.getComputedStyle(element);
+      setBox({
+        width: entry.contentRect.width,
+        font: `${style.fontStyle} ${style.fontWeight} ${style.fontSize} ${style.fontFamily}`,
+      });
+    });
+    observer.observe(element);
+    return () => observer.disconnect();
+  }, [element]);
+
+  // Candidates are rebuilt on every render, so key the choice on their content.
+  // They must not contain a newline, which keeps this join unambiguous.
+  const key = candidates.join("\n");
+
+  return [
+    setElement,
+    useMemo(() => {
+      const options = key.split("\n");
+      if (!box || box.width === 0) return options[0];
+      return (
+        options.find((option) => measureText(option, box.font) <= box.width)
+        ?? options[options.length - 1]
+      );
+    }, [key, box]),
+  ];
+}
diff --git a/lib/__tests__/keyword-format.test.ts b/lib/__tests__/keyword-format.test.ts
new file mode 100644
index 00000000..72f8537e
--- /dev/null
+++ b/lib/__tests__/keyword-format.test.ts
@@ -0,0 +1,115 @@
+import { describe, it, expect } from "vitest";
+import { formatKeyword, formatKeywordLabels, keywordRenderings } from "@/lib/keyword-format";
+import type { KeywordDefinition } from "@/stores/settings-store";
+
+const kw = (id: string, label: string): KeywordDefinition => ({ id, label, color: "blue" });
+
+// Work
+//   Clients
+//     Acme
+//   Personal
+const KEYWORDS: KeywordDefinition[] = [
+  kw("work", "Work"),
+  kw("work/clients", "Clients"),
+  kw("work/clients/acme", "Acme"),
+  kw("work/personal", "Personal"),
+];
+
+describe("formatKeyword with nesting on", () => {
+  it("joins the display name of every level", () => {
+    expect(formatKeyword("work/clients/acme", KEYWORDS, true)).toBe("Work/Clients/Acme");
+  });
+
+  it("returns the plain display name for a tag with one level", () => {
+    expect(formatKeyword("work", KEYWORDS, true)).toBe("Work");
+  });
+
+  it("falls back to the raw level for one this client does not know", () => {
+    expect(formatKeyword("work/archive/2026", KEYWORDS, true)).toBe("Work/archive/2026");
+    expect(formatKeyword("unknown", [], true)).toBe("unknown");
+  });
+});
+
+describe("formatKeyword with nesting off", () => {
+  it("names a tag by its own label, leaving a slash in the id uninterpreted", () => {
+    // The setting says a slash means nothing, so an id that happens to contain
+    // one - from before it was turned off, or from another client - is a single
+    // opaque token rather than a hierarchy.
+    expect(formatKeyword("work/clients/acme", KEYWORDS, false)).toBe("Acme");
+    expect(formatKeyword("work", KEYWORDS, false)).toBe("Work");
+  });
+
+  it("falls back to the whole id when the tag has no definition", () => {
+    expect(formatKeyword("work/archive/2026", KEYWORDS, false)).toBe("work/archive/2026");
+  });
+
+  it("offers no shortening, leaving the markup to clip", () => {
+    expect(keywordRenderings(formatKeywordLabels("work/clients/acme", KEYWORDS, false)))
+      .toEqual(["Acme"]);
+  });
+});
+
+describe("keywordRenderings", () => {
+  it("shortens by one intermediate level at a time, outermost first", () => {
+    expect(keywordRenderings(["Work", "Clients", "Acme", "EU", "Sales"])).toEqual([
+      "Work/Clients/Acme/EU/Sales",
+      "Work/../Acme/EU/Sales",
+      "Work/.../EU/Sales",
+      "Work/.../Sales",
+    ]);
+  });
+
+  it("collapses to a single ... as soon as the run covers more than one level", () => {
+    expect(keywordRenderings(["Work", "Clients", "Acme", "Sales"])).toEqual([
+      "Work/Clients/Acme/Sales",
+      "Work/../Acme/Sales",
+      "Work/.../Sales",
+    ]);
+  });
+
+  it("uses .. for a lone intermediate level, never ...", () => {
+    expect(keywordRenderings(["Work", "Clients", "Acme"])).toEqual([
+      "Work/Clients/Acme",
+      "Work/../Acme",
+    ]);
+  });
+
+  it("has nothing to shorten without an intermediate level", () => {
+    expect(keywordRenderings(["Work", "Acme"])).toEqual(["Work/Acme"]);
+    expect(keywordRenderings(["Work"])).toEqual(["Work"]);
+  });
+
+  it("drops a rendering that would not come out shorter", () => {
+    // "../" costs as much as the level it replaces, so shortening buys nothing.
+    expect(keywordRenderings(["a", "it", "b"])).toEqual(["a/it/b"]);
+    expect(keywordRenderings(["a", "x", "b"])).toEqual(["a/x/b"]);
+  });
+});
+
+// How the components use the two together: resolve a tag to its display names,
+// then hand the ladder to `useShortenedText` to pick a rung.
+describe("keywordRenderings over formatKeywordLabels", () => {
+  it("shortens a display name by the same ladder as an id", () => {
+    const deep: KeywordDefinition[] = [
+      kw("work", "Work"),
+      kw("work/clients", "Clients"),
+      kw("work/clients/acme", "Acme"),
+      kw("work/clients/acme/eu", "Europe"),
+    ];
+
+    expect(keywordRenderings(formatKeywordLabels("work/clients/acme/eu", deep, true))).toEqual([
+      "Work/Clients/Acme/Europe",
+      "Work/../Acme/Europe",
+      "Work/.../Europe",
+    ]);
+  });
+
+  it("treats a slash inside one display name as part of that name, not a level", () => {
+    const slashed: KeywordDefinition[] = [kw("work", "Work"), kw("work/acme-r-d", "Acme/R&D")];
+
+    // Two levels, so there is no intermediate level to shorten.
+    expect(keywordRenderings(formatKeywordLabels("work/acme-r-d", slashed, true))).toEqual([
+      "Work/Acme/R&D",
+    ]);
+  });
+});
diff --git a/lib/__tests__/keyword-nesting.test.ts b/lib/__tests__/keyword-nesting.test.ts
new file mode 100644
index 00000000..709b6c38
--- /dev/null
+++ b/lib/__tests__/keyword-nesting.test.ts
@@ -0,0 +1,138 @@
+import { describe, it, expect } from "vitest";
+import {
+  MAX_KEYWORD_ID_LENGTH,
+  buildKeywordTree,
+  composeKeywordId,
+  getParentKeywordId,
+  hasChildKeywords,
+  isKeywordDescendant,
+  keywordLevels,
+  normalizeKeywordLevel,
+} from "@/lib/keyword-nesting";
+import type { KeywordDefinition } from "@/stores/settings-store";
+
+const kw = (id: string, label: string): KeywordDefinition => ({ id, label, color: "blue" });
+
+// Work
+//   Clients
+//     Acme
+//   Personal
+const KEYWORDS: KeywordDefinition[] = [
+  kw("work", "Work"),
+  kw("work/clients", "Clients"),
+  kw("work/clients/acme", "Acme"),
+  kw("work/personal", "Personal"),
+];
+
+describe("normalizeKeywordLevel", () => {
+  it("lowercases and folds unsupported characters into single dashes", () => {
+    expect(normalizeKeywordLevel("My Custom Tag!")).toBe("my-custom-tag");
+    expect(normalizeKeywordLevel("  Spaced   Out  ")).toBe("spaced-out");
+    expect(normalizeKeywordLevel("--Trimmed--")).toBe("trimmed");
+  });
+
+  it("treats a slash as part of the name, not as a level", () => {
+    expect(normalizeKeywordLevel("Acme/R&D")).toBe("acme-r-d");
+  });
+
+  it("returns an empty string when nothing usable is left", () => {
+    expect(normalizeKeywordLevel("   ")).toBe("");
+    expect(normalizeKeywordLevel("!!!")).toBe("");
+  });
+});
+
+describe("composeKeywordId", () => {
+  it("returns a bare slug at the top level", () => {
+    expect(composeKeywordId(null, "Work")).toBe("work");
+    expect(composeKeywordId("", "Work")).toBe("work");
+  });
+
+  it("appends the slug below the parent", () => {
+    expect(composeKeywordId("work/clients", "Acme")).toBe("work/clients/acme");
+  });
+
+  it("never produces a trailing separator for an unusable name", () => {
+    expect(composeKeywordId("work", "!!!")).toBe("");
+  });
+});
+
+describe("keywordLevels", () => {
+  it("splits an id into its levels", () => {
+    expect(keywordLevels("work/clients/acme")).toEqual(["work", "clients", "acme"]);
+    expect(keywordLevels("work")).toEqual(["work"]);
+  });
+});
+
+describe("getParentKeywordId", () => {
+  it("drops the last level", () => {
+    expect(getParentKeywordId("work/clients/acme")).toBe("work/clients");
+  });
+
+  it("returns null for a top-level tag", () => {
+    expect(getParentKeywordId("work")).toBeNull();
+  });
+});
+
+describe("isKeywordDescendant", () => {
+  it("matches anything below the ancestor", () => {
+    expect(isKeywordDescendant("work/clients/acme", "work")).toBe(true);
+    expect(isKeywordDescendant("work/clients", "work")).toBe(true);
+  });
+
+  it("does not match the ancestor itself or a shared name prefix", () => {
+    expect(isKeywordDescendant("work", "work")).toBe(false);
+    expect(isKeywordDescendant("workshop/tools", "work")).toBe(false);
+  });
+});
+
+describe("hasChildKeywords", () => {
+  it("reports whether any defined tag sits below the given one", () => {
+    expect(hasChildKeywords("work", KEYWORDS)).toBe(true);
+    expect(hasChildKeywords("work/clients", KEYWORDS)).toBe(true);
+    expect(hasChildKeywords("work/clients/acme", KEYWORDS)).toBe(false);
+  });
+});
+
+describe("MAX_KEYWORD_ID_LENGTH", () => {
+  it("leaves room for the `$label:` prefix within the 255-character keyword limit", () => {
+    expect(MAX_KEYWORD_ID_LENGTH).toBe(248);
+    expect("$label:".length + MAX_KEYWORD_ID_LENGTH).toBe(255);
+  });
+});
+
+describe("buildKeywordTree", () => {
+  it("nests each tag under its parent and records the depth", () => {
+    const [work] = buildKeywordTree(KEYWORDS);
+
+    expect(work.id).toBe("work");
+    expect(work.depth).toBe(0);
+    expect(work.children.map((c) => c.id)).toEqual(["work/clients", "work/personal"]);
+
+    const clients = work.children[0];
+    expect(clients.depth).toBe(1);
+    expect(clients.children.map((c) => c.id)).toEqual(["work/clients/acme"]);
+    expect(clients.children[0].depth).toBe(2);
+  });
+
+  it("keeps the manual order within a level", () => {
+    const reordered = [KEYWORDS[0], KEYWORDS[3], KEYWORDS[1], KEYWORDS[2]];
+    const [work] = buildKeywordTree(reordered);
+
+    expect(work.children.map((c) => c.id)).toEqual(["work/personal", "work/clients"]);
+  });
+
+  it("keeps a tag whose parent is not defined at the root", () => {
+    const orphan = buildKeywordTree([kw("work/clients/acme", "Acme")]);
+
+    expect(orphan).toHaveLength(1);
+    expect(orphan[0].id).toBe("work/clients/acme");
+    expect(orphan[0].depth).toBe(0);
+  });
+
+  it("returns every tag as a root when no id describes a hierarchy", () => {
+    const flat = buildKeywordTree([kw("red", "Red"), kw("blue", "Blue")]);
+
+    expect(flat.map((n) => n.id)).toEqual(["red", "blue"]);
+    expect(flat.every((n) => n.depth === 0 && n.children.length === 0)).toBe(true);
+  });
+});
diff --git a/lib/keyword-format.ts b/lib/keyword-format.ts
new file mode 100644
index 00000000..49d98c6c
--- /dev/null
+++ b/lib/keyword-format.ts
@@ -0,0 +1,83 @@
+/**
+ * Naming a tag on screen.
+ *
+ * A nested tag is written out level by level - `Work/Clients/Acme` - and a flat
+ * one is simply its own name, so nothing here asks the caller which kind it
+ * has. `keywordRenderings` additionally offers progressively shorter forms for
+ * a name with nowhere to fit, which `useShortenedText` measures against the
+ * room actually available.
+ */
+import type { KeywordDefinition } from "@/stores/settings-store";
+import { KEYWORD_SEPARATOR, keywordLevels } from "./keyword-nesting";
+
+/** Stands in for one level left out of a name. */
+export const KEYWORD_SHORTENED_LEVEL = "..";
+
+/** Stands in for a run of more than one level left out of a name. */
+export const KEYWORD_SHORTENED_RUN = "...";
+
+/**
+ * The display name of a tag, one entry per level, outermost first. A tag with
+ * one level yields a single entry, so callers need not care either way.
+ *
+ * `nested` is the user's setting. With nesting off a slash carries no meaning,
+ * so the id is one opaque token and the tag is named by its own label - nobody
+ * who left the setting alone should find their tags rewritten because an id
+ * happens to contain a slash, which can outlast turning nesting off, or arrive
+ * through settings sync or another client.
+ *
+ * With nesting on, each level resolves to that tag's display name, falling back
+ * to the raw level of the id when it has no definition - the settings list only
+ * describes the tags this client knows about. Levels stay separate entries
+ * because a display name may itself contain a slash, which is part of that one
+ * name rather than a level of its own.
+ */
+export function formatKeywordLabels(
+  id: string,
+  keywords: KeywordDefinition[],
+  nested: boolean,
+): string[] {
+  const label = (levelId: string) => keywords.find((keyword) => keyword.id === levelId)?.label;
+  if (!nested) return [label(id) ?? id];
+
+  const levels = keywordLevels(id);
+  return levels.map((level, index) =>
+    label(levels.slice(0, index + 1).join(KEYWORD_SEPARATOR)) ?? level,
+  );
+}
+
+/**
+ * The display name of a tag: `Work/Clients/Acme` for a nested one, its own name
+ * otherwise. The general way to name a tag on screen.
+ */
+export function formatKeyword(
+  id: string,
+  keywords: KeywordDefinition[],
+  nested: boolean,
+): string {
+  return formatKeywordLabels(id, keywords, nested).join(KEYWORD_SEPARATOR);
+}
+
+/**
+ * Every way a name can be written, longest first: in full, then with an ever
+ * longer run of intermediate levels replaced by `..`, collapsing to a single
+ * `...` as soon as that run covers more than one level.
+ *
+ * The outermost and innermost levels always survive - between them they say
+ * which branch a tag belongs to and which tag it is, which is exactly what a
+ * trailing ellipsis destroys. A rendering that would not actually come out
+ * shorter than the one before it (levels named `it`, say) is dropped, so
+ * walking the list never makes the text grow.
+ */
+export function keywordRenderings(levels: string[]): string[] {
+  const renderings = [levels.join(KEYWORD_SEPARATOR)];
+  for (let shortened = 1; shortened <= levels.length - 2; shortened++) {
+    const marker = shortened === 1 ? KEYWORD_SHORTENED_LEVEL : KEYWORD_SHORTENED_RUN;
+    const rendering = [levels[0], marker, ...levels.slice(shortened + 1)]
+      .join(KEYWORD_SEPARATOR);
+    if (rendering.length < renderings[renderings.length - 1].length) {
+      renderings.push(rendering);
+    }
+  }
+  return renderings;
+}
diff --git a/lib/keyword-nesting.ts b/lib/keyword-nesting.ts
new file mode 100644
index 00000000..b2d77e72
--- /dev/null
+++ b/lib/keyword-nesting.ts
@@ -0,0 +1,113 @@
+/**
+ * Tag nesting.
+ *
+ * A tag is stored on the server as the JMAP keyword `$label:<id>`, where `id`
+ * is a slug derived from the display name. Nesting reuses that single id: the
+ * levels are joined with a forward slash, so `$label:work/clients` is the child
+ * of `$label:work`. Keeping the hierarchy inside the id means the server stays
+ * the source of truth for tag membership and existing lookups by keyword keep
+ * working.
+ *
+ * RFC 8621 section 4.1.1 allows a keyword of 1-255 characters from the ASCII
+ * range %x21-%x7e minus `( ) { ] % * " \`, so the separator is legal but the
+ * length of a deep id is not free - `MAX_KEYWORD_ID_LENGTH` is the budget a
+ * composed id has to stay within.
+ *
+ * Turning any of this into text for the screen lives in `keyword-format`.
+ */
+import type { KeywordDefinition } from "@/stores/settings-store";
+import { KEYWORD_PREFIX } from "./thread-utils";
+
+/** Separates parent from child inside a tag id. */
+export const KEYWORD_SEPARATOR = "/";
+
+/** Longest keyword a JMAP server has to accept (RFC 8621, section 4.1.1). */
+export const MAX_KEYWORD_LENGTH = 255;
+
+/** What is left for the id once the `$label:` prefix is spent. */
+export const MAX_KEYWORD_ID_LENGTH = MAX_KEYWORD_LENGTH - KEYWORD_PREFIX.length;
+
+/** A tag definition placed in the hierarchy its id describes. */
+export interface KeywordNode extends KeywordDefinition {
+  children: KeywordNode[];
+  depth: number;
+}
+
+/**
+ * Reduces a display name to one level of an id: lowercase, and everything
+ * outside `[a-z0-9_-]` folded to a single dash. The separator is not exempt -
+ * a slash typed into the name is a literal part of that name, not a level.
+ * The only slug function for tag ids; keep it the only one.
+ */
+export function normalizeKeywordLevel(name: string): string {
+  return name
+    .trim()
+    .toLowerCase()
+    .replace(/[^a-z0-9_-]/g, "-")
+    .replace(/-+/g, "-")
+    .replace(/^-|-$/g, "");
+}
+
+/** Builds the id a tag named `name` gets under `parentId` (null = top level). */
+export function composeKeywordId(parentId: string | null, name: string): string {
+  const level = normalizeKeywordLevel(name);
+  if (!parentId || !level) return level;
+  return `${parentId}${KEYWORD_SEPARATOR}${level}`;
+}
+
+/** Splits `work/clients/acme` into `["work", "clients", "acme"]`. */
+export function keywordLevels(id: string): string[] {
+  return id.split(KEYWORD_SEPARATOR).filter(Boolean);
+}
+
+/** The id of the tag one level up, or null for a top-level tag. */
+export function getParentKeywordId(id: string): string | null {
+  const index = id.lastIndexOf(KEYWORD_SEPARATOR);
+  return index === -1 ? null : id.slice(0, index);
+}
+
+/** True when `candidateId` sits anywhere below `ancestorId`. */
+export function isKeywordDescendant(candidateId: string, ancestorId: string): boolean {
+  return candidateId.startsWith(`${ancestorId}${KEYWORD_SEPARATOR}`);
+}
+
+/** True when any defined tag sits below `id`. */
+export function hasChildKeywords(id: string, keywords: KeywordDefinition[]): boolean {
+  return keywords.some((keyword) => isKeywordDescendant(keyword.id, id));
+}
+
+/**
+ * Arranges tag definitions into the tree their ids describe, preserving the
+ * user's manual order within each level.
+ *
+ * A tag whose direct parent is not defined stays at the root rather than being
+ * hidden or grafted onto a grandparent; callers name such a root in full so the
+ * missing level is still visible.
+ */
+export function buildKeywordTree(keywords: KeywordDefinition[]): KeywordNode[] {
+  const nodes = new Map<string, KeywordNode>();
+  for (const keyword of keywords) {
+    nodes.set(keyword.id, { ...keyword, children: [], depth: 0 });
+  }
+
+  const roots: KeywordNode[] = [];
+  for (const keyword of keywords) {
+    const node = nodes.get(keyword.id)!;
+    const parentId = getParentKeywordId(keyword.id);
+    const parent = parentId ? nodes.get(parentId) : undefined;
+    if (parent) {
+      parent.children.push(node);
+    } else {
+      roots.push(node);
+    }
+  }
+
+  const setDepth = (node: KeywordNode, depth: number) => {
+    node.depth = depth;
+    node.children.forEach((child) => setDepth(child, depth + 1));
+  };
+  roots.forEach((root) => setDepth(root, 0));
+
+  return roots;
+}
+
diff --git a/locales/en/common.json b/locales/en/common.json
index a84d239a..96526730 100644
--- a/locales/en/common.json
+++ b/locales/en/common.json
@@ -1032,7 +1032,16 @@
       "add": "Add",
       "cancel": "Cancel",
       "migrating": "Updating tag on existing emails…",
-      "migration_error": "Failed to update tag on existing emails"
+      "migration_error": "Failed to update tag on existing emails",
+      "nesting": {
+        "label": "Nested Tags",
+        "description": "Nest tags underneath other tags and show them as a tree in the sidebar."
+      },
+      "parent_field": "Parent Tag",
+      "no_parent": "No parent",
+      "too_long": "This tag path is too long (at most {max} characters)",
+      "has_children_locked": "Other tags are nested under this one, so its name and parent are locked. Move or remove them first.",
+      "has_children_delete": "Remove the tags nested under this one first"
     },
     "notifications": {
       "test_sound": "Test notification sound",
diff --git a/locales/nl/common.json b/locales/nl/common.json
index 28028a68..f1e9c19e 100644
--- a/locales/nl/common.json
+++ b/locales/nl/common.json
@@ -1029,7 +1029,16 @@
       "add": "Toevoegen",
       "cancel": "Annuleren",
       "migrating": "Label bijwerken op bestaande e-mails…",
-      "migration_error": "Label bijwerken op bestaande e-mails mislukt"
+      "migration_error": "Label bijwerken op bestaande e-mails mislukt",
+      "nesting": {
+        "label": "Geneste labels",
+        "description": "Nest labels onder andere labels en toon ze als een boomstructuur in de zijbalk."
+      },
+      "parent_field": "Bovenliggend label",
+      "no_parent": "Geen bovenliggend label",
+      "too_long": "Dit labelpad is te lang (maximaal {max} tekens)",
+      "has_children_locked": "Er vallen andere labels onder dit label, dus de naam en het bovenliggende label liggen vast. Verplaats of verwijder ze eerst.",
+      "has_children_delete": "Verwijder eerst de labels die hieronder vallen"
     },
     "notifications": {
       "test_sound": "Meldingsgeluid testen",
diff --git a/stores/__tests__/settings-store-keywords.test.ts b/stores/__tests__/settings-store-keywords.test.ts
index 89b0aaa5..0722ac4c 100644
--- a/stores/__tests__/settings-store-keywords.test.ts
+++ b/stores/__tests__/settings-store-keywords.test.ts
@@ -156,4 +156,19 @@ describe('settings-store keywords', () => {
       expect(kw?.label).toBe('Scarlet');
     });
   });
+
+  describe('nestedTags', () => {
+    it('is off by default', () => {
+      useSettingsStore.getState().resetToDefaults();
+      expect(useSettingsStore.getState().nestedTags).toBe(false);
+    });
+
+    it('is included in exported settings', () => {
+      useSettingsStore.getState().updateSetting('nestedTags', true);
+      const exported = JSON.parse(useSettingsStore.getState().exportSettings()) as {
+        nestedTags?: boolean;
+      };
+      expect(exported.nestedTags).toBe(true);
+    });
+  });
 });
diff --git a/stores/settings-store.ts b/stores/settings-store.ts
index cf32971e..7d5b2a03 100644
--- a/stores/settings-store.ts
+++ b/stores/settings-store.ts
@@ -287,6 +287,7 @@ interface SettingsState {
 
   // Keywords (labels/tags)
   emailKeywords: KeywordDefinition[];
+  nestedTags: boolean; // Treat "/" in a tag id as a parent/child separator
 
   // Attachment Reminder
   attachmentReminderEnabled: boolean;
@@ -485,6 +486,7 @@ const DEFAULT_SETTINGS = {
 
   // Keywords
   emailKeywords: DEFAULT_KEYWORDS,
+  nestedTags: false,
 
   // Attachment Reminder
   attachmentReminderEnabled: true,
@@ -661,6 +663,7 @@ export const useSettingsStore = create<SettingsState>()(
           showFolderTotalCount: state.showFolderTotalCount,
           folderIcons: state.folderIcons,
           emailKeywords: state.emailKeywords,
+          nestedTags: state.nestedTags,
           attachmentReminderEnabled: state.attachmentReminderEnabled,
           attachmentReminderKeywords: state.attachmentReminderKeywords,
           hideInlineImageAttachments: state.hideInlineImageAttachments,