diff --git a/index.js b/index.js
index b268c7b..cdb4713 100644
--- a/index.js
+++ b/index.js
@@ -299,6 +299,10 @@ async function initUI() {
     $('#rpg-toggle-always-show-bubble').on('change', function() {
         extensionSettings.alwaysShowThoughtBubble = $(this).prop('checked');
         saveSettings();
+        // Force immediate save to ensure setting is persisted before any other code runs
+        const context = getContext();
+        const extension_settings = context.extension_settings || context.extensionSettings;
+        extension_settings[extensionName] = extensionSettings;
         // Re-render thoughts to apply the setting
         updateChatThoughts();
     });
diff --git a/src/systems/rendering/thoughts.js b/src/systems/rendering/thoughts.js
index 8e9c79e..df8029b 100644
--- a/src/systems/rendering/thoughts.js
+++ b/src/systems/rendering/thoughts.js
@@ -872,9 +872,7 @@ export function createThoughtPanel($message, thoughtsArray) {
 
     // Append to body so it's not clipped by chat container
     $('body').append($thoughtPanel);
-    $('body').append($thoughtIcon);
-
-    // Position the panel next to the avatar
+    $('body').append($thoughtIcon);    // Position the panel next to the avatar
     const panelWidth = 350;
     const panelMargin = 20;
 
@@ -980,31 +978,32 @@ export function createThoughtPanel($message, thoughtsArray) {
 
     // Check if always show bubble is enabled
     if (extensionSettings.alwaysShowThoughtBubble) {
-        // Always show panel, hide icon
+        // Always show panel expanded, hide both close button and icon
         $thoughtPanel.show();
+        $thoughtPanel.find('.rpg-thought-close').hide();
         $thoughtIcon.hide();
     } else {
         // Initially hide the panel and show the icon
         $thoughtPanel.hide();
         $thoughtIcon.show();
+
+        // Close button functionality - only when always show is disabled
+        $thoughtPanel.find('.rpg-thought-close').on('click', function(e) {
+            e.stopPropagation();
+            $thoughtPanel.fadeOut(200);
+            $thoughtIcon.fadeIn(200);
+        });
+
+        // Icon click to show panel - only when always show is disabled
+        $thoughtIcon.on('click', function(e) {
+            e.stopPropagation();
+            $thoughtIcon.fadeOut(200);
+            $thoughtPanel.fadeIn(200);
+        });
     }
 
     // console.log('[RPG Companion] Thought panel created at:', { top, left });
 
-    // Close button functionality
-    $thoughtPanel.find('.rpg-thought-close').on('click', function(e) {
-        e.stopPropagation();
-        $thoughtPanel.fadeOut(200);
-        $thoughtIcon.fadeIn(200);
-    });
-
-    // Icon click to show panel
-    $thoughtIcon.on('click', function(e) {
-        e.stopPropagation();
-        $thoughtIcon.fadeOut(200);
-        $thoughtPanel.fadeIn(200);
-    });
-
     // Add event handlers for editable thoughts in the bubble
     $thoughtPanel.find('.rpg-editable').on('blur', function() {
         const character = $(this).data('character');
@@ -1082,12 +1081,14 @@ export function createThoughtPanel($message, thoughtsArray) {
     $('#chat').on('scroll.thoughtPanel', updatePanelPosition);
     $(window).on('resize.thoughtPanel', updatePanelPosition);
 
-    // Remove panel when clicking outside (but not when clicking icon or panel)
-    $(document).on('click.thoughtPanel', function(e) {
-        if (!$(e.target).closest('#rpg-thought-panel, #rpg-thought-icon').length) {
-            // Hide the panel and show the icon instead of removing
-            $thoughtPanel.fadeOut(200);
-            $thoughtIcon.fadeIn(200);
-        }
-    });
+    // Remove panel when clicking outside - only if always show is disabled
+    if (!extensionSettings.alwaysShowThoughtBubble) {
+        $(document).on('click.thoughtPanel', function(e) {
+            if (!$(e.target).closest('#rpg-thought-panel, #rpg-thought-icon').length) {
+                // Hide the panel and show the icon instead of removing
+                $thoughtPanel.fadeOut(200);
+                $thoughtIcon.fadeIn(200);
+            }
+        });
+    }
 }