diff --git a/src/systems/rendering/inventory.js b/src/systems/rendering/inventory.js
new file mode 100644
index 0000000..2b4aa4b
--- /dev/null
+++ b/src/systems/rendering/inventory.js
@@ -0,0 +1,234 @@
+/**
+ * Inventory Rendering Module
+ * Handles UI rendering for inventory v2 system
+ */
+
+import { extensionSettings } from '../../core/state.js';
+
+// Type imports
+/** @typedef {import('../../types/inventory.js').InventoryV2} InventoryV2 */
+
+/**
+ * Renders the inventory sub-tab navigation (On Person, Stored, Assets)
+ * @param {string} activeTab - Currently active sub-tab ('onPerson', 'stored', 'assets')
+ * @returns {string} HTML for sub-tab navigation
+ */
+export function renderInventorySubTabs(activeTab = 'onPerson') {
+    return `
+        <div class="rpg-inventory-subtabs">
+            <button class="rpg-inventory-subtab ${activeTab === 'onPerson' ? 'active' : ''}" data-tab="onPerson">
+                On Person
+            </button>
+            <button class="rpg-inventory-subtab ${activeTab === 'stored' ? 'active' : ''}" data-tab="stored">
+                Stored
+            </button>
+            <button class="rpg-inventory-subtab ${activeTab === 'assets' ? 'active' : ''}" data-tab="assets">
+                Assets
+            </button>
+        </div>
+    `;
+}
+
+/**
+ * Renders the "On Person" inventory view
+ * @param {string} onPersonItems - Current on-person items
+ * @returns {string} HTML for on-person view with edit controls
+ */
+export function renderOnPersonView(onPersonItems) {
+    const displayText = onPersonItems || 'None';
+    return `
+        <div class="rpg-inventory-section" data-section="onPerson">
+            <div class="rpg-inventory-header">
+                <h4>Items Currently Carried</h4>
+                <button class="rpg-inventory-edit-btn" data-action="edit-onperson" title="Edit on-person inventory">
+                    <i class="fa-solid fa-pen"></i> Edit
+                </button>
+            </div>
+            <div class="rpg-inventory-content">
+                <div class="rpg-inventory-text">${escapeHtml(displayText)}</div>
+            </div>
+        </div>
+    `;
+}
+
+/**
+ * Renders the "Stored" inventory view with collapsible locations
+ * @param {Object.<string, string>} stored - Stored items by location
+ * @param {string[]} collapsedLocations - Array of collapsed location names
+ * @returns {string} HTML for stored inventory with all locations
+ */
+export function renderStoredView(stored, collapsedLocations = []) {
+    const locations = Object.keys(stored || {});
+
+    let html = `
+        <div class="rpg-inventory-section" data-section="stored">
+            <div class="rpg-inventory-header">
+                <h4>Storage Locations</h4>
+                <button class="rpg-inventory-add-btn" data-action="add-location" title="Add new storage location">
+                    <i class="fa-solid fa-plus"></i> Add Location
+                </button>
+            </div>
+            <div class="rpg-inventory-content">
+    `;
+
+    if (locations.length === 0) {
+        html += `
+                <div class="rpg-inventory-empty">
+                    No storage locations yet. Click "Add Location" to create one.
+                </div>
+        `;
+    } else {
+        for (const location of locations) {
+            const items = stored[location];
+            const isCollapsed = collapsedLocations.includes(location);
+            html += `
+                <div class="rpg-storage-location ${isCollapsed ? 'collapsed' : ''}" data-location="${escapeHtml(location)}">
+                    <div class="rpg-storage-header">
+                        <button class="rpg-storage-toggle" data-action="toggle-location" data-location="${escapeHtml(location)}">
+                            <i class="fa-solid fa-chevron-${isCollapsed ? 'right' : 'down'}"></i>
+                        </button>
+                        <h5 class="rpg-storage-name">${escapeHtml(location)}</h5>
+                        <div class="rpg-storage-actions">
+                            <button class="rpg-inventory-edit-btn" data-action="edit-location" data-location="${escapeHtml(location)}" title="Edit items at this location">
+                                <i class="fa-solid fa-pen"></i>
+                            </button>
+                            <button class="rpg-inventory-remove-btn" data-action="remove-location" data-location="${escapeHtml(location)}" title="Remove this storage location">
+                                <i class="fa-solid fa-trash"></i>
+                            </button>
+                        </div>
+                    </div>
+                    <div class="rpg-storage-content" ${isCollapsed ? 'style="display:none;"' : ''}>
+                        <div class="rpg-inventory-text">${escapeHtml(items || 'None')}</div>
+                    </div>
+                </div>
+            `;
+        }
+    }
+
+    html += `
+            </div>
+        </div>
+    `;
+
+    return html;
+}
+
+/**
+ * Renders the "Assets" inventory view
+ * @param {string} assets - Current assets (vehicles, property, equipment)
+ * @returns {string} HTML for assets view with edit controls
+ */
+export function renderAssetsView(assets) {
+    const displayText = assets || 'None';
+    return `
+        <div class="rpg-inventory-section" data-section="assets">
+            <div class="rpg-inventory-header">
+                <h4>Vehicles, Property & Major Possessions</h4>
+                <button class="rpg-inventory-edit-btn" data-action="edit-assets" title="Edit assets">
+                    <i class="fa-solid fa-pen"></i> Edit
+                </button>
+            </div>
+            <div class="rpg-inventory-content">
+                <div class="rpg-inventory-text">${escapeHtml(displayText)}</div>
+                <div class="rpg-inventory-hint">
+                    <i class="fa-solid fa-info-circle"></i>
+                    Assets include vehicles (cars, motorcycles), property (homes, apartments),
+                    and major equipment (workshop tools, special items).
+                </div>
+            </div>
+        </div>
+    `;
+}
+
+/**
+ * Main inventory rendering function
+ * @param {InventoryV2} inventory - Inventory data to render
+ * @param {Object} options - Rendering options
+ * @param {string} options.activeSubTab - Currently active sub-tab ('onPerson', 'stored', 'assets')
+ * @param {string[]} options.collapsedLocations - Collapsed storage locations
+ * @returns {string} Complete HTML for inventory tab content
+ */
+export function renderInventory(inventory, options = {}) {
+    const {
+        activeSubTab = 'onPerson',
+        collapsedLocations = []
+    } = options;
+
+    // Handle legacy v1 format - convert to v2 for display
+    let v2Inventory = inventory;
+    if (typeof inventory === 'string') {
+        v2Inventory = {
+            version: 2,
+            onPerson: inventory,
+            stored: {},
+            assets: 'None'
+        };
+    }
+
+    // Ensure v2 structure has all required fields
+    if (!v2Inventory || typeof v2Inventory !== 'object') {
+        v2Inventory = {
+            version: 2,
+            onPerson: 'None',
+            stored: {},
+            assets: 'None'
+        };
+    }
+
+    let html = `
+        <div class="rpg-inventory-container">
+            ${renderInventorySubTabs(activeSubTab)}
+            <div class="rpg-inventory-views">
+    `;
+
+    // Render the active view
+    switch (activeSubTab) {
+        case 'onPerson':
+            html += renderOnPersonView(v2Inventory.onPerson);
+            break;
+        case 'stored':
+            html += renderStoredView(v2Inventory.stored, collapsedLocations);
+            break;
+        case 'assets':
+            html += renderAssetsView(v2Inventory.assets);
+            break;
+        default:
+            html += renderOnPersonView(v2Inventory.onPerson);
+    }
+
+    html += `
+            </div>
+        </div>
+    `;
+
+    return html;
+}
+
+/**
+ * Updates the inventory display in the DOM
+ * @param {string} containerId - ID of container element to update
+ * @param {Object} options - Rendering options (passed to renderInventory)
+ */
+export function updateInventoryDisplay(containerId, options = {}) {
+    const container = document.getElementById(containerId);
+    if (!container) {
+        console.warn(`[RPG Companion] Inventory container not found: ${containerId}`);
+        return;
+    }
+
+    const inventory = extensionSettings.userStats.inventory;
+    const html = renderInventory(inventory, options);
+    container.innerHTML = html;
+}
+
+/**
+ * Escapes HTML special characters to prevent XSS
+ * @param {string} text - Text to escape
+ * @returns {string} Escaped text
+ */
+function escapeHtml(text) {
+    if (!text) return '';
+    const div = document.createElement('div');
+    div.textContent = text;
+    return div.innerHTML;
+}
diff --git a/src/systems/rendering/userStats.js b/src/systems/rendering/userStats.js
index 78d7ea6..6b907fb 100644
--- a/src/systems/rendering/userStats.js
+++ b/src/systems/rendering/userStats.js
@@ -55,11 +55,6 @@ export function renderUserStats() {
             <div class="rpg-stats-left">
                 <div style="display: flex; gap: clamp(4px, 0.8vh, 8px); align-items: center; flex-shrink: 0;">
                     <img src="${userPortrait}" alt="${userName}" class="rpg-user-portrait" onerror="this.style.opacity='0.5';this.onerror=null;" />
-                    <div class="rpg-inventory-box">
-                        <div class="rpg-inventory-items rpg-editable" contenteditable="true" data-field="inventory" title="Click to edit">
-                            ${stats.inventory || 'None'}
-                        </div>
-                    </div>
                 </div>
                 <div class="rpg-stats-grid">
                     <div class="rpg-stat-row">
@@ -199,20 +194,6 @@ export function renderUserStats() {
         renderUserStats();
     });
 
-    // Add event listener for inventory editing
-    $('.rpg-inventory-items.rpg-editable').on('blur', function() {
-        const value = $(this).text().trim();
-        extensionSettings.userStats.inventory = value || 'None';
-
-        // Update lastGeneratedData
-        const statsText = `Health: ${extensionSettings.userStats.health}%\nSatiety: ${extensionSettings.userStats.satiety}%\nEnergy: ${extensionSettings.userStats.energy}%\nHygiene: ${extensionSettings.userStats.hygiene}%\nArousal: ${extensionSettings.userStats.arousal}%\n${extensionSettings.userStats.mood}: ${extensionSettings.userStats.conditions}\nInventory: ${extensionSettings.userStats.inventory}`;
-        lastGeneratedData.userStats = statsText;
-
-        saveSettings();
-        saveChatData();
-        updateMessageSwipeData();
-    });
-
     // Add event listeners for mood/conditions editing
     $('.rpg-mood-emoji.rpg-editable').on('blur', function() {
         const value = $(this).text().trim();
diff --git a/style.css b/style.css
index 40551a4..8ebe3b8 100644
--- a/style.css
+++ b/style.css
@@ -3906,3 +3906,245 @@ body:has(.rpg-panel.rpg-position-left) #sheld {
         font-size: 2.2vw;
     }
 }
+
+/* ========================================
+   Inventory System v2 Styles
+   ======================================== */
+
+/* Inventory Container */
+.rpg-inventory-container {
+    display: flex;
+    flex-direction: column;
+    gap: 1rem;
+    padding: 0.5rem;
+    font-size: 0.9rem;
+}
+
+/* Sub-tabs Navigation */
+.rpg-inventory-subtabs {
+    display: flex;
+    gap: 0.5rem;
+    border-bottom: 2px solid var(--SmartThemeBorderColor);
+    padding-bottom: 0.5rem;
+}
+
+.rpg-inventory-subtab {
+    flex: 1;
+    padding: 0.5rem 1rem;
+    background: var(--SmartThemeBlurTintColor);
+    border: 1px solid var(--SmartThemeBorderColor);
+    border-radius: 0.25rem;
+    color: var(--SmartThemeBodyColor);
+    cursor: pointer;
+    transition: all 0.2s ease;
+    font-weight: 500;
+}
+
+.rpg-inventory-subtab:hover {
+    background: var(--SmartThemeQuoteColor);
+}
+
+.rpg-inventory-subtab.active {
+    background: var(--SmartThemeEmColor);
+    border-color: var(--ac-style-color-matchedText);
+    font-weight: 600;
+}
+
+/* Inventory Sections */
+.rpg-inventory-section {
+    display: flex;
+    flex-direction: column;
+    gap: 0.75rem;
+}
+
+.rpg-inventory-header {
+    display: flex;
+    justify-content: space-between;
+    align-items: center;
+    padding-bottom: 0.5rem;
+    border-bottom: 1px solid var(--SmartThemeBorderColor);
+}
+
+.rpg-inventory-header h4 {
+    margin: 0;
+    font-size: 1.1rem;
+    color: var(--SmartThemeBodyColor);
+}
+
+.rpg-inventory-content {
+    display: flex;
+    flex-direction: column;
+    gap: 0.75rem;
+}
+
+.rpg-inventory-text {
+    padding: 0.75rem;
+    background: var(--SmartThemeBlurTintColor);
+    border: 1px solid var(--SmartThemeBorderColor);
+    border-radius: 0.25rem;
+    color: var(--SmartThemeBodyColor);
+    line-height: 1.6;
+    white-space: pre-wrap;
+    word-wrap: break-word;
+}
+
+.rpg-inventory-empty {
+    padding: 2rem;
+    text-align: center;
+    color: var(--SmartThemeFastUISliderColColor);
+    font-style: italic;
+}
+
+.rpg-inventory-hint {
+    padding: 0.5rem;
+    background: var(--SmartThemeQuoteColor);
+    border-left: 3px solid var(--ac-style-color-matchedText);
+    border-radius: 0.25rem;
+    font-size: 0.85rem;
+    color: var(--SmartThemeFastUISliderColColor);
+    display: flex;
+    gap: 0.5rem;
+    align-items: flex-start;
+}
+
+.rpg-inventory-hint i {
+    margin-top: 0.1rem;
+}
+
+/* Storage Locations */
+.rpg-storage-location {
+    border: 1px solid var(--SmartThemeBorderColor);
+    border-radius: 0.25rem;
+    overflow: hidden;
+}
+
+.rpg-storage-header {
+    display: flex;
+    align-items: center;
+    gap: 0.5rem;
+    padding: 0.5rem;
+    background: var(--SmartThemeQuoteColor);
+    cursor: pointer;
+}
+
+.rpg-storage-toggle {
+    background: none;
+    border: none;
+    color: var(--SmartThemeBodyColor);
+    cursor: pointer;
+    padding: 0.25rem;
+    display: flex;
+    align-items: center;
+    justify-content: center;
+    transition: transform 0.2s ease;
+}
+
+.rpg-storage-toggle:hover {
+    color: var(--ac-style-color-matchedText);
+}
+
+.rpg-storage-name {
+    flex: 1;
+    margin: 0;
+    font-size: 1rem;
+    font-weight: 600;
+    color: var(--SmartThemeBodyColor);
+}
+
+.rpg-storage-actions {
+    display: flex;
+    gap: 0.5rem;
+}
+
+.rpg-storage-content {
+    padding: 0.75rem;
+    background: var(--SmartThemeBlurTintColor);
+}
+
+.rpg-storage-location.collapsed .rpg-storage-content {
+    display: none;
+}
+
+/* Buttons */
+.rpg-inventory-edit-btn,
+.rpg-inventory-add-btn,
+.rpg-inventory-remove-btn {
+    padding: 0.4rem 0.75rem;
+    border: 1px solid var(--SmartThemeBorderColor);
+    border-radius: 0.25rem;
+    background: var(--SmartThemeBlurTintColor);
+    color: var(--SmartThemeBodyColor);
+    cursor: pointer;
+    transition: all 0.2s ease;
+    font-size: 0.85rem;
+    display: flex;
+    align-items: center;
+    gap: 0.35rem;
+}
+
+.rpg-inventory-edit-btn:hover {
+    background: var(--ac-style-color-matchedText);
+    border-color: var(--ac-style-color-matchedText);
+    color: white;
+}
+
+.rpg-inventory-add-btn {
+    background: var(--ac-style-color-matchedText);
+    border-color: var(--ac-style-color-matchedText);
+    color: white;
+}
+
+.rpg-inventory-add-btn:hover {
+    opacity: 0.85;
+}
+
+.rpg-inventory-remove-btn {
+    background: transparent;
+    color: var(--SmartThemeFastUISliderColColor);
+}
+
+.rpg-inventory-remove-btn:hover {
+    background: #dc3545;
+    border-color: #dc3545;
+    color: white;
+}
+
+/* Mobile Responsive Styles */
+@media (max-width: 768px) {
+    .rpg-inventory-subtabs {
+        flex-direction: column;
+        gap: 0.35rem;
+    }
+
+    .rpg-inventory-subtab {
+        font-size: 1rem;
+        padding: 0.75rem;
+    }
+
+    .rpg-inventory-header {
+        flex-direction: column;
+        align-items: flex-start;
+        gap: 0.5rem;
+    }
+
+    .rpg-inventory-header h4 {
+        font-size: 1rem;
+    }
+
+    .rpg-inventory-edit-btn,
+    .rpg-inventory-add-btn,
+    .rpg-inventory-remove-btn {
+        padding: 0.6rem 1rem;
+        font-size: 0.95rem;
+        min-height: 2.5rem;
+    }
+
+    .rpg-storage-header {
+        padding: 0.75rem;
+    }
+
+    .rpg-storage-toggle {
+        min-width: 2rem;
+        min-height: 2rem;
+    }
+}