diff --git a/src/core/persistence.js b/src/core/persistence.js
index a0f3c69..df4dd13 100644
--- a/src/core/persistence.js
+++ b/src/core/persistence.js
@@ -18,6 +18,7 @@ import {
 } from './state.js';
 import { migrateInventory } from '../utils/migration.js';
 import { validateStoredInventory, cleanItemString } from '../utils/security.js';
+import { generateDefaultDashboard, migrateV1ToV2Dashboard, validateDashboardConfig } from '../systems/dashboard/defaultLayout.js';
 
 const extensionName = 'third-party/rpg-companion-sillytavern';
 
@@ -95,6 +96,20 @@ export function loadSettings() {
                 saveSettings(); // Persist migrated inventory
             }
         }
+
+        // Migrate to v2.0 dashboard if not present
+        if (!extensionSettings.dashboard || !extensionSettings.dashboard.tabs || extensionSettings.dashboard.tabs.length === 0) {
+            console.log('[RPG Companion] Dashboard v2.0 not found, migrating from v1.x');
+            extensionSettings.dashboard = migrateV1ToV2Dashboard(extensionSettings);
+            saveSettings(); // Persist migrated dashboard
+        } else {
+            // Validate existing dashboard config
+            if (!validateDashboardConfig(extensionSettings.dashboard)) {
+                console.warn('[RPG Companion] Dashboard config invalid, regenerating default');
+                extensionSettings.dashboard = generateDefaultDashboard();
+                saveSettings();
+            }
+        }
     } catch (error) {
         console.error('[RPG Companion] Error loading settings:', error);
         console.error('[RPG Companion] Error details:', error.message, error.stack);
diff --git a/src/core/state.js b/src/core/state.js
index 23d0b18..c0f7a36 100644
--- a/src/core/state.js
+++ b/src/core/state.js
@@ -77,7 +77,41 @@ export let extensionSettings = {
         stored: 'list',   // 'list' or 'grid' view mode for Stored section
         assets: 'list'    // 'list' or 'grid' view mode for Assets section
     },
-    debugMode: false // Enable debug logging visible in UI (for mobile debugging)
+    debugMode: false, // Enable debug logging visible in UI (for mobile debugging)
+
+    // Dashboard v2.0 Configuration
+    dashboard: {
+        version: 2, // Dashboard config version
+
+        gridConfig: {
+            columns: 12,           // Grid columns
+            rowHeight: 80,         // Pixels per row
+            gap: 12,               // Gap between widgets (px)
+            snapToGrid: true,      // Auto-snap enabled
+            showGrid: true         // Show grid lines in edit mode
+        },
+
+        tabs: [
+            // Default tabs will be generated by generateDefaultDashboard()
+            // Structure:
+            // {
+            //   id: 'tab-status',
+            //   name: 'Status',
+            //   icon: '📊',
+            //   order: 0,
+            //   widgets: [
+            //     {
+            //       id: 'widget-1',
+            //       type: 'userStats',
+            //       x: 0, y: 0, w: 6, h: 3,
+            //       config: {}
+            //     }
+            //   ]
+            // }
+        ],
+
+        defaultTab: 'tab-status' // Which tab to show on load
+    }
 };
 
 /**
diff --git a/src/systems/dashboard/defaultLayout.js b/src/systems/dashboard/defaultLayout.js
new file mode 100644
index 0000000..5ccfdc9
--- /dev/null
+++ b/src/systems/dashboard/defaultLayout.js
@@ -0,0 +1,261 @@
+/**
+ * Default Dashboard Layout Generator
+ *
+ * Generates the default dashboard configuration for new users or when resetting layout.
+ * Maps existing v1.x panel structure to v2.0 widget dashboard.
+ */
+
+/**
+ * Generate default dashboard configuration
+ *
+ * Creates a two-tab layout:
+ * - "Status" tab: User stats, info box, present characters
+ * - "Inventory" tab: Full inventory widget
+ *
+ * @returns {Object} Default dashboard configuration
+ */
+export function generateDefaultDashboard() {
+    const dashboard = {
+        version: 2,
+
+        gridConfig: {
+            columns: 12,
+            rowHeight: 80,
+            gap: 12,
+            snapToGrid: true,
+            showGrid: true
+        },
+
+        tabs: [
+            {
+                id: 'tab-status',
+                name: 'Status',
+                icon: '📊',
+                order: 0,
+                widgets: [
+                    {
+                        id: 'widget-userstats',
+                        type: 'userStats',
+                        x: 0,
+                        y: 0,
+                        w: 6,
+                        h: 3,
+                        config: {
+                            showClassicStats: true,
+                            statBarStyle: 'gradient'
+                        }
+                    },
+                    {
+                        id: 'widget-infobox',
+                        type: 'infoBox',
+                        x: 6,
+                        y: 0,
+                        w: 6,
+                        h: 2,
+                        config: {
+                            layout: 'horizontal'
+                        }
+                    },
+                    {
+                        id: 'widget-presentchars',
+                        type: 'presentCharacters',
+                        x: 0,
+                        y: 3,
+                        w: 12,
+                        h: 3,
+                        config: {
+                            cardLayout: 'grid',
+                            showThoughtBubbles: true
+                        }
+                    }
+                ]
+            },
+            {
+                id: 'tab-inventory',
+                name: 'Inventory',
+                icon: '🎒',
+                order: 1,
+                widgets: [
+                    {
+                        id: 'widget-inventory',
+                        type: 'inventory',
+                        x: 0,
+                        y: 0,
+                        w: 12,
+                        h: 6,
+                        config: {
+                            defaultSubTab: 'onPerson',
+                            defaultViewMode: 'list'
+                        }
+                    }
+                ]
+            }
+        ],
+
+        defaultTab: 'tab-status'
+    };
+
+    console.log('[DefaultLayout] Generated default dashboard configuration');
+    return dashboard;
+}
+
+/**
+ * Migrate v1.x settings to v2.0 dashboard
+ *
+ * Converts existing hardcoded panel structure to widget-based layout.
+ * Preserves user's visibility preferences and data.
+ *
+ * @param {Object} oldSettings - v1.x extension settings
+ * @returns {Object} Migrated dashboard configuration
+ */
+export function migrateV1ToV2Dashboard(oldSettings) {
+    console.log('[DefaultLayout] Migrating v1.x settings to v2.0 dashboard');
+
+    const dashboard = generateDefaultDashboard();
+
+    // Respect user's visibility preferences from v1.x
+    const statusTab = dashboard.tabs[0];
+
+    // Remove widgets that were hidden in v1.x
+    if (!oldSettings.showUserStats) {
+        statusTab.widgets = statusTab.widgets.filter(w => w.type !== 'userStats');
+        console.log('[DefaultLayout] Removed userStats widget (was hidden in v1.x)');
+    }
+
+    if (!oldSettings.showInfoBox) {
+        statusTab.widgets = statusTab.widgets.filter(w => w.type !== 'infoBox');
+        console.log('[DefaultLayout] Removed infoBox widget (was hidden in v1.x)');
+    }
+
+    if (!oldSettings.showCharacterThoughts) {
+        statusTab.widgets = statusTab.widgets.filter(w => w.type !== 'presentCharacters');
+        console.log('[DefaultLayout] Removed presentCharacters widget (was hidden in v1.x)');
+    }
+
+    // Remove inventory tab if it was hidden in v1.x
+    if (!oldSettings.showInventory) {
+        dashboard.tabs = dashboard.tabs.filter(t => t.id !== 'tab-inventory');
+        console.log('[DefaultLayout] Removed inventory tab (was hidden in v1.x)');
+    }
+
+    // If all widgets were hidden on status tab, remove it too
+    if (statusTab.widgets.length === 0) {
+        dashboard.tabs = dashboard.tabs.filter(t => t.id !== 'tab-status');
+        console.log('[DefaultLayout] Removed status tab (all widgets were hidden)');
+
+        // If we still have inventory tab, make it default
+        if (dashboard.tabs.length > 0) {
+            dashboard.defaultTab = dashboard.tabs[0].id;
+        }
+    }
+
+    console.log(`[DefaultLayout] Migration complete - ${dashboard.tabs.length} tabs, ${dashboard.tabs.reduce((sum, t) => sum + t.widgets.length, 0)} widgets`);
+
+    return dashboard;
+}
+
+/**
+ * Validate dashboard configuration
+ *
+ * Ensures dashboard config has all required fields and valid structure.
+ *
+ * @param {Object} dashboard - Dashboard configuration to validate
+ * @returns {boolean} True if valid, false otherwise
+ */
+export function validateDashboardConfig(dashboard) {
+    if (!dashboard) {
+        console.error('[DefaultLayout] Dashboard config is null or undefined');
+        return false;
+    }
+
+    if (!dashboard.version) {
+        console.error('[DefaultLayout] Dashboard config missing version');
+        return false;
+    }
+
+    if (!dashboard.gridConfig) {
+        console.error('[DefaultLayout] Dashboard config missing gridConfig');
+        return false;
+    }
+
+    if (!Array.isArray(dashboard.tabs)) {
+        console.error('[DefaultLayout] Dashboard tabs is not an array');
+        return false;
+    }
+
+    // Validate each tab
+    for (const tab of dashboard.tabs) {
+        if (!tab.id || !tab.name) {
+            console.error('[DefaultLayout] Tab missing id or name:', tab);
+            return false;
+        }
+
+        if (!Array.isArray(tab.widgets)) {
+            console.error('[DefaultLayout] Tab widgets is not an array:', tab);
+            return false;
+        }
+
+        // Validate each widget
+        for (const widget of tab.widgets) {
+            if (!widget.id || !widget.type) {
+                console.error('[DefaultLayout] Widget missing id or type:', widget);
+                return false;
+            }
+
+            if (typeof widget.x !== 'number' || typeof widget.y !== 'number') {
+                console.error('[DefaultLayout] Widget position invalid:', widget);
+                return false;
+            }
+
+            if (typeof widget.w !== 'number' || typeof widget.h !== 'number') {
+                console.error('[DefaultLayout] Widget size invalid:', widget);
+                return false;
+            }
+        }
+    }
+
+    return true;
+}
+
+/**
+ * Get widget count in dashboard
+ *
+ * @param {Object} dashboard - Dashboard configuration
+ * @returns {number} Total number of widgets across all tabs
+ */
+export function getWidgetCount(dashboard) {
+    if (!dashboard || !Array.isArray(dashboard.tabs)) {
+        return 0;
+    }
+
+    return dashboard.tabs.reduce((sum, tab) => {
+        return sum + (Array.isArray(tab.widgets) ? tab.widgets.length : 0);
+    }, 0);
+}
+
+/**
+ * Find widget by ID across all tabs
+ *
+ * @param {Object} dashboard - Dashboard configuration
+ * @param {string} widgetId - Widget ID to find
+ * @returns {{tabIndex: number, widgetIndex: number, widget: Object}|null}
+ */
+export function findWidget(dashboard, widgetId) {
+    if (!dashboard || !Array.isArray(dashboard.tabs)) {
+        return null;
+    }
+
+    for (let tabIndex = 0; tabIndex < dashboard.tabs.length; tabIndex++) {
+        const tab = dashboard.tabs[tabIndex];
+        if (!Array.isArray(tab.widgets)) continue;
+
+        for (let widgetIndex = 0; widgetIndex < tab.widgets.length; widgetIndex++) {
+            const widget = tab.widgets[widgetIndex];
+            if (widget.id === widgetId) {
+                return { tabIndex, widgetIndex, widget };
+            }
+        }
+    }
+
+    return null;
+}
diff --git a/src/systems/dashboard/defaultLayout.test.html b/src/systems/dashboard/defaultLayout.test.html
new file mode 100644
index 0000000..afb9904
--- /dev/null
+++ b/src/systems/dashboard/defaultLayout.test.html
@@ -0,0 +1,368 @@
+<!DOCTYPE html>
+<html lang="en">
+<head>
+    <meta charset="UTF-8">
+    <meta name="viewport" content="width=device-width, initial-scale=1.0">
+    <title>Default Layout Test</title>
+    <style>
+        * {
+            margin: 0;
+            padding: 0;
+            box-sizing: border-box;
+        }
+
+        body {
+            font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
+            background: #1a1a2e;
+            color: #eee;
+            padding: 20px;
+        }
+
+        h1 {
+            margin-bottom: 20px;
+            color: #e94560;
+        }
+
+        .test-section {
+            background: #16213e;
+            padding: 15px;
+            border-radius: 8px;
+            margin-bottom: 15px;
+        }
+
+        .test-section h2 {
+            color: #4ecca3;
+            margin-bottom: 10px;
+            font-size: 18px;
+        }
+
+        pre {
+            background: #0f3460;
+            padding: 15px;
+            border-radius: 5px;
+            overflow-x: auto;
+            font-family: 'Courier New', monospace;
+            font-size: 12px;
+            line-height: 1.5;
+        }
+
+        .result {
+            margin: 10px 0;
+            padding: 10px;
+            border-left: 3px solid #4ecca3;
+            background: #0f3460;
+        }
+
+        .result.pass {
+            border-color: #4ecca3;
+        }
+
+        .result.fail {
+            border-color: #e94560;
+            background: #2a0f1b;
+        }
+
+        button {
+            background: #e94560;
+            color: white;
+            border: none;
+            padding: 10px 20px;
+            margin: 5px;
+            border-radius: 5px;
+            cursor: pointer;
+            font-size: 14px;
+        }
+
+        button:hover {
+            background: #d63651;
+        }
+
+        .stats {
+            display: grid;
+            grid-template-columns: repeat(auto-fit, minmax(200px, 1fr));
+            gap: 10px;
+            margin-top: 10px;
+        }
+
+        .stat-box {
+            background: #0f3460;
+            padding: 10px;
+            border-radius: 5px;
+        }
+
+        .stat-label {
+            font-size: 11px;
+            opacity: 0.7;
+            text-transform: uppercase;
+            margin-bottom: 5px;
+        }
+
+        .stat-value {
+            font-size: 18px;
+            font-weight: bold;
+            color: #4ecca3;
+        }
+    </style>
+</head>
+<body>
+    <h1>🏗️ Default Layout Test Suite</h1>
+
+    <div class="test-section">
+        <h2>Test 1: Generate Default Dashboard</h2>
+        <div id="test1-results"></div>
+        <button onclick="test1()">Run Test 1</button>
+    </div>
+
+    <div class="test-section">
+        <h2>Test 2: Validate Dashboard Config</h2>
+        <div id="test2-results"></div>
+        <button onclick="test2()">Run Test 2</button>
+    </div>
+
+    <div class="test-section">
+        <h2>Test 3: Migrate v1.x Settings</h2>
+        <div id="test3-results"></div>
+        <button onclick="test3()">Run Test 3</button>
+    </div>
+
+    <div class="test-section">
+        <h2>Test 4: Find Widget Utility</h2>
+        <div id="test4-results"></div>
+        <button onclick="test4()">Run Test 4</button>
+    </div>
+
+    <div class="test-section">
+        <h2>Generated Dashboard JSON</h2>
+        <pre id="dashboard-json"></pre>
+    </div>
+
+    <div class="test-section">
+        <h2>Dashboard Statistics</h2>
+        <div id="stats" class="stats"></div>
+    </div>
+
+    <div style="margin-top: 20px;">
+        <button onclick="runAllTests()">🔄 Run All Tests</button>
+    </div>
+
+    <script type="module">
+        import {
+            generateDefaultDashboard,
+            migrateV1ToV2Dashboard,
+            validateDashboardConfig,
+            getWidgetCount,
+            findWidget
+        } from './defaultLayout.js';
+
+        let dashboard = null;
+
+        function pass(message) {
+            return `<div class="result pass">✓ ${message}</div>`;
+        }
+
+        function fail(message) {
+            return `<div class="result fail">✗ ${message}</div>`;
+        }
+
+        // Test 1: Generate default dashboard
+        window.test1 = function() {
+            const container = document.getElementById('test1-results');
+            container.innerHTML = '';
+
+            try {
+                dashboard = generateDefaultDashboard();
+                container.innerHTML += pass('Generated default dashboard');
+
+                if (dashboard.version === 2) {
+                    container.innerHTML += pass(`Dashboard version: ${dashboard.version}`);
+                } else {
+                    container.innerHTML += fail(`Wrong version: ${dashboard.version}`);
+                }
+
+                if (dashboard.tabs && dashboard.tabs.length === 2) {
+                    container.innerHTML += pass(`Generated ${dashboard.tabs.length} tabs`);
+                } else {
+                    container.innerHTML += fail(`Wrong tab count: ${dashboard.tabs?.length || 0}`);
+                }
+
+                const statusTab = dashboard.tabs.find(t => t.id === 'tab-status');
+                if (statusTab && statusTab.widgets.length === 3) {
+                    container.innerHTML += pass(`Status tab has ${statusTab.widgets.length} widgets`);
+                } else {
+                    container.innerHTML += fail(`Wrong widget count in status tab`);
+                }
+
+                const inventoryTab = dashboard.tabs.find(t => t.id === 'tab-inventory');
+                if (inventoryTab && inventoryTab.widgets.length === 1) {
+                    container.innerHTML += pass(`Inventory tab has ${inventoryTab.widgets.length} widget`);
+                } else {
+                    container.innerHTML += fail(`Wrong widget count in inventory tab`);
+                }
+
+                updateDashboardDisplay();
+                updateStats();
+
+            } catch (error) {
+                container.innerHTML += fail(`Error: ${error.message}`);
+            }
+        };
+
+        // Test 2: Validate dashboard config
+        window.test2 = function() {
+            const container = document.getElementById('test2-results');
+            container.innerHTML = '';
+
+            if (!dashboard) {
+                container.innerHTML += fail('No dashboard generated yet (run Test 1 first)');
+                return;
+            }
+
+            const valid = validateDashboardConfig(dashboard);
+            if (valid) {
+                container.innerHTML += pass('Dashboard config is valid');
+            } else {
+                container.innerHTML += fail('Dashboard config validation failed');
+            }
+
+            // Test invalid configs
+            const invalidConfigs = [
+                { config: null, name: 'null config' },
+                { config: {}, name: 'empty config' },
+                { config: { version: 2 }, name: 'missing gridConfig' },
+                { config: { version: 2, gridConfig: {}, tabs: 'not-array' }, name: 'tabs not array' }
+            ];
+
+            for (const test of invalidConfigs) {
+                const result = validateDashboardConfig(test.config);
+                if (!result) {
+                    container.innerHTML += pass(`Correctly rejected ${test.name}`);
+                } else {
+                    container.innerHTML += fail(`Failed to reject ${test.name}`);
+                }
+            }
+        };
+
+        // Test 3: Migrate v1.x settings
+        window.test3 = function() {
+            const container = document.getElementById('test3-results');
+            container.innerHTML = '';
+
+            // Simulate v1.x settings with some sections hidden
+            const v1Settings = {
+                showUserStats: true,
+                showInfoBox: false,  // Hidden
+                showCharacterThoughts: true,
+                showInventory: true
+            };
+
+            try {
+                const migrated = migrateV1ToV2Dashboard(v1Settings);
+                container.innerHTML += pass('Migrated v1.x settings');
+
+                const statusTab = migrated.tabs.find(t => t.id === 'tab-status');
+                const hasInfoBox = statusTab?.widgets.some(w => w.type === 'infoBox');
+
+                if (!hasInfoBox) {
+                    container.innerHTML += pass('Correctly removed hidden infoBox widget');
+                } else {
+                    container.innerHTML += fail('Failed to remove hidden infoBox widget');
+                }
+
+                container.innerHTML += `<div class="result">Migrated dashboard has ${migrated.tabs.length} tabs</div>`;
+                container.innerHTML += `<div class="result">Status tab has ${statusTab?.widgets.length || 0} widgets</div>`;
+
+            } catch (error) {
+                container.innerHTML += fail(`Error: ${error.message}`);
+            }
+        };
+
+        // Test 4: Find widget utility
+        window.test4 = function() {
+            const container = document.getElementById('test4-results');
+            container.innerHTML = '';
+
+            if (!dashboard) {
+                container.innerHTML += fail('No dashboard generated yet (run Test 1 first)');
+                return;
+            }
+
+            const found = findWidget(dashboard, 'widget-userstats');
+            if (found) {
+                container.innerHTML += pass(`Found widget: ${found.widget.id} at tab ${found.tabIndex}, widget ${found.widgetIndex}`);
+                container.innerHTML += `<div class="result">Widget type: ${found.widget.type}</div>`;
+                container.innerHTML += `<div class="result">Position: (${found.widget.x}, ${found.widget.y})</div>`;
+                container.innerHTML += `<div class="result">Size: ${found.widget.w}×${found.widget.h}</div>`;
+            } else {
+                container.innerHTML += fail('Failed to find widget-userstats');
+            }
+
+            const notFound = findWidget(dashboard, 'widget-nonexistent');
+            if (!notFound) {
+                container.innerHTML += pass('Correctly returned null for non-existent widget');
+            } else {
+                container.innerHTML += fail('Should return null for non-existent widget');
+            }
+        };
+
+        // Update dashboard JSON display
+        function updateDashboardDisplay() {
+            const jsonContainer = document.getElementById('dashboard-json');
+            if (dashboard) {
+                jsonContainer.textContent = JSON.stringify(dashboard, null, 2);
+            } else {
+                jsonContainer.textContent = '// No dashboard generated yet';
+            }
+        }
+
+        // Update stats
+        function updateStats() {
+            const statsContainer = document.getElementById('stats');
+
+            if (!dashboard) {
+                statsContainer.innerHTML = '<div class="stat-box">No dashboard generated yet</div>';
+                return;
+            }
+
+            const widgetCount = getWidgetCount(dashboard);
+
+            statsContainer.innerHTML = `
+                <div class="stat-box">
+                    <div class="stat-label">Dashboard Version</div>
+                    <div class="stat-value">${dashboard.version}</div>
+                </div>
+                <div class="stat-box">
+                    <div class="stat-label">Total Tabs</div>
+                    <div class="stat-value">${dashboard.tabs.length}</div>
+                </div>
+                <div class="stat-box">
+                    <div class="stat-label">Total Widgets</div>
+                    <div class="stat-value">${widgetCount}</div>
+                </div>
+                <div class="stat-box">
+                    <div class="stat-label">Grid Columns</div>
+                    <div class="stat-value">${dashboard.gridConfig.columns}</div>
+                </div>
+                <div class="stat-box">
+                    <div class="stat-label">Row Height</div>
+                    <div class="stat-value">${dashboard.gridConfig.rowHeight}px</div>
+                </div>
+                <div class="stat-box">
+                    <div class="stat-label">Default Tab</div>
+                    <div class="stat-value">${dashboard.defaultTab}</div>
+                </div>
+            `;
+        }
+
+        // Run all tests
+        window.runAllTests = function() {
+            test1();
+            setTimeout(() => test2(), 100);
+            setTimeout(() => test3(), 200);
+            setTimeout(() => test4(), 300);
+        };
+
+        // Auto-run on load
+        runAllTests();
+    </script>
+</body>
+</html>