diff --git a/src/systems/interaction/inventoryActions.js b/src/systems/interaction/inventoryActions.js
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+/**
+ * Inventory Actions Module
+ * Handles all user interactions with the inventory v2 system
+ */
+
+import { extensionSettings, lastGeneratedData } from '../../core/state.js';
+import { saveSettings, saveChatData, updateMessageSwipeData } from '../../core/persistence.js';
+import { buildInventorySummary } from '../generation/promptBuilder.js';
+import { renderInventory, updateInventoryDisplay } from '../rendering/inventory.js';
+
+// Type imports
+/** @typedef {import('../../types/inventory.js').InventoryV2} InventoryV2 */
+
+/**
+ * Current active sub-tab for inventory UI
+ * @type {string}
+ */
+let currentActiveSubTab = 'onPerson';
+
+/**
+ * Array of collapsed storage location names
+ * @type {string[]}
+ */
+let collapsedLocations = [];
+
+/**
+ * Updates lastGeneratedData.userStats to include current inventory in text format.
+ * This ensures the AI context stays synced with manual edits.
+ */
+function updateLastGeneratedDataInventory() {
+    const stats = extensionSettings.userStats;
+    const inventorySummary = buildInventorySummary(stats.inventory);
+
+    // Rebuild the lastGeneratedData.userStats text format
+    lastGeneratedData.userStats =
+        `Health: ${stats.health}%\n` +
+        `Satiety: ${stats.satiety}%\n` +
+        `Energy: ${stats.energy}%\n` +
+        `Hygiene: ${stats.hygiene}%\n` +
+        `Arousal: ${stats.arousal}%\n` +
+        `${stats.mood}: ${stats.conditions}\n` +
+        `${inventorySummary}`;
+}
+
+/**
+ * Edits items currently on the character's person.
+ * @returns {Promise<void>}
+ */
+export async function editOnPerson() {
+    const inventory = extensionSettings.userStats.inventory;
+    const current = inventory.onPerson || 'None';
+
+    const newValue = prompt('Edit items on person (carried/worn):', current);
+    if (newValue === null) return; // User cancelled
+
+    inventory.onPerson = newValue.trim() || 'None';
+
+    updateLastGeneratedDataInventory();
+    saveSettings();
+    saveChatData();
+    updateMessageSwipeData();
+
+    // Re-render inventory UI
+    updateInventoryDisplay('rpg-inventory-content', {
+        activeSubTab: currentActiveSubTab,
+        collapsedLocations
+    });
+}
+
+/**
+ * Edits items stored at a specific location.
+ * @param {string} locationName - Name of the storage location
+ * @returns {Promise<void>}
+ */
+export async function editStoredLocation(locationName) {
+    const inventory = extensionSettings.userStats.inventory;
+    const current = inventory.stored[locationName] || 'None';
+
+    const newValue = prompt(`Edit items stored at "${locationName}":`, current);
+    if (newValue === null) return; // User cancelled
+
+    inventory.stored[locationName] = newValue.trim() || 'None';
+
+    updateLastGeneratedDataInventory();
+    saveSettings();
+    saveChatData();
+    updateMessageSwipeData();
+
+    // Re-render inventory UI
+    updateInventoryDisplay('rpg-inventory-content', {
+        activeSubTab: currentActiveSubTab,
+        collapsedLocations
+    });
+}
+
+/**
+ * Edits character's assets (vehicles, property, major possessions).
+ * @returns {Promise<void>}
+ */
+export async function editAssets() {
+    const inventory = extensionSettings.userStats.inventory;
+    const current = inventory.assets || 'None';
+
+    const newValue = prompt('Edit assets (vehicles, property, equipment):', current);
+    if (newValue === null) return; // User cancelled
+
+    inventory.assets = newValue.trim() || 'None';
+
+    updateLastGeneratedDataInventory();
+    saveSettings();
+    saveChatData();
+    updateMessageSwipeData();
+
+    // Re-render inventory UI
+    updateInventoryDisplay('rpg-inventory-content', {
+        activeSubTab: currentActiveSubTab,
+        collapsedLocations
+    });
+}
+
+/**
+ * Adds a new storage location to the inventory.
+ * @returns {Promise<void>}
+ */
+export async function addStorageLocation() {
+    const inventory = extensionSettings.userStats.inventory;
+
+    const locationName = prompt('Enter name for new storage location:');
+    if (!locationName) return; // User cancelled or entered empty string
+
+    const trimmedName = locationName.trim();
+
+    // Check for duplicate
+    if (inventory.stored[trimmedName]) {
+        alert(`Storage location "${trimmedName}" already exists.`);
+        return;
+    }
+
+    // Create new location with default "None"
+    inventory.stored[trimmedName] = 'None';
+
+    updateLastGeneratedDataInventory();
+    saveSettings();
+    saveChatData();
+    updateMessageSwipeData();
+
+    // Switch to stored tab and re-render
+    currentActiveSubTab = 'stored';
+    updateInventoryDisplay('rpg-inventory-content', {
+        activeSubTab: currentActiveSubTab,
+        collapsedLocations
+    });
+}
+
+/**
+ * Removes a storage location from the inventory.
+ * @param {string} locationName - Name of location to remove
+ * @returns {Promise<void>}
+ */
+export async function removeStorageLocation(locationName) {
+    const confirmed = confirm(`Remove storage location "${locationName}"?\n\nThis will delete all items stored there.`);
+    if (!confirmed) return;
+
+    const inventory = extensionSettings.userStats.inventory;
+    delete inventory.stored[locationName];
+
+    // Remove from collapsed list if present
+    const index = collapsedLocations.indexOf(locationName);
+    if (index > -1) {
+        collapsedLocations.splice(index, 1);
+    }
+
+    updateLastGeneratedDataInventory();
+    saveSettings();
+    saveChatData();
+    updateMessageSwipeData();
+
+    // Re-render inventory UI
+    updateInventoryDisplay('rpg-inventory-content', {
+        activeSubTab: currentActiveSubTab,
+        collapsedLocations
+    });
+}
+
+/**
+ * Toggles the collapsed state of a storage location section.
+ * @param {string} locationName - Name of location to toggle
+ */
+export function toggleLocationCollapse(locationName) {
+    const index = collapsedLocations.indexOf(locationName);
+
+    if (index > -1) {
+        // Currently collapsed, expand it
+        collapsedLocations.splice(index, 1);
+    } else {
+        // Currently expanded, collapse it
+        collapsedLocations.push(locationName);
+    }
+
+    // Save collapsed state to settings
+    extensionSettings.collapsedInventoryLocations = collapsedLocations;
+    saveSettings();
+
+    // Re-render inventory UI
+    updateInventoryDisplay('rpg-inventory-content', {
+        activeSubTab: currentActiveSubTab,
+        collapsedLocations
+    });
+}
+
+/**
+ * Switches the active inventory sub-tab.
+ * @param {string} tabName - Name of the tab ('onPerson', 'stored', 'assets')
+ */
+export function switchInventoryTab(tabName) {
+    currentActiveSubTab = tabName;
+
+    // Re-render inventory UI
+    updateInventoryDisplay('rpg-inventory-content', {
+        activeSubTab: currentActiveSubTab,
+        collapsedLocations
+    });
+}
+
+/**
+ * Initializes all event listeners for inventory interactions.
+ * Uses event delegation to handle dynamically created elements.
+ */
+export function initInventoryEventListeners() {
+    // Load collapsed state from settings
+    if (extensionSettings.collapsedInventoryLocations) {
+        collapsedLocations = extensionSettings.collapsedInventoryLocations;
+    }
+
+    // Event delegation for all inventory buttons
+    $(document).on('click', '.rpg-inventory-edit-btn', function(e) {
+        e.preventDefault();
+        const action = $(this).data('action');
+
+        if (action === 'edit-onperson') {
+            editOnPerson();
+        } else if (action === 'edit-location') {
+            const location = $(this).data('location');
+            editStoredLocation(location);
+        } else if (action === 'edit-assets') {
+            editAssets();
+        }
+    });
+
+    // Add location button
+    $(document).on('click', '.rpg-inventory-add-btn', function(e) {
+        e.preventDefault();
+        const action = $(this).data('action');
+
+        if (action === 'add-location') {
+            addStorageLocation();
+        }
+    });
+
+    // Remove location buttons
+    $(document).on('click', '.rpg-inventory-remove-btn', function(e) {
+        e.preventDefault();
+        const action = $(this).data('action');
+
+        if (action === 'remove-location') {
+            const location = $(this).data('location');
+            removeStorageLocation(location);
+        }
+    });
+
+    // Collapse toggle buttons
+    $(document).on('click', '.rpg-storage-toggle', function(e) {
+        e.preventDefault();
+        const location = $(this).data('location');
+        toggleLocationCollapse(location);
+    });
+
+    // Sub-tab switching
+    $(document).on('click', '.rpg-inventory-subtab', function(e) {
+        e.preventDefault();
+        const tab = $(this).data('tab');
+        switchInventoryTab(tab);
+    });
+
+    console.log('[RPG Companion] Inventory event listeners initialized');
+}
+
+/**
+ * Gets the current inventory rendering options.
+ * @returns {Object} Options object with activeSubTab and collapsedLocations
+ */
+export function getInventoryRenderOptions() {
+    return {
+        activeSubTab: currentActiveSubTab,
+        collapsedLocations
+    };
+}