diff --git a/packages/backend/src/index.ts b/packages/backend/src/index.ts
index ae11f7e..d54ba22 100644
--- a/packages/backend/src/index.ts
+++ b/packages/backend/src/index.ts
@@ -6,6 +6,7 @@ import { fileURLToPath } from "url";
 import { initWebSocket, getClientCount } from "./services/ws.service.js";
 import workspaceRouter from "./routes/workspace.js";
 import dockerRouter from "./routes/docker.js";
+import editorRouter from "./routes/editor.js";
 
 const __dirname = path.dirname(fileURLToPath(import.meta.url));
 const app = express();
@@ -26,6 +27,7 @@ app.get("/api/health", (_req, res) => {
 
 app.use("/api/workspace", workspaceRouter);
 app.use("/api/docker", dockerRouter);
+app.use("/api/editor", editorRouter);
 
 const frontendDist = path.resolve(__dirname, "../../frontend/dist");
 app.use(express.static(frontendDist));
diff --git a/packages/backend/src/routes/editor.ts b/packages/backend/src/routes/editor.ts
new file mode 100644
index 0000000..2e3d083
--- /dev/null
+++ b/packages/backend/src/routes/editor.ts
@@ -0,0 +1,51 @@
+import { Router } from "express";
+import {
+  getDirectoryTree,
+  readFile,
+  writeFile,
+  deleteFile,
+} from "../services/editor.service.js";
+
+const router = Router();
+
+router.get("/tree/:repo", async (req, res) => {
+  try {
+    const tree = await getDirectoryTree(req.params.repo);
+    res.json(tree);
+  } catch (err: unknown) {
+    const message = err instanceof Error ? err.message : "Unknown error";
+    res.status(500).json({ error: message });
+  }
+});
+
+router.get("/file/:repo/*path", async (req, res) => {
+  try {
+    const content = await readFile(req.params.repo, req.params.path);
+    res.json({ content });
+  } catch (err: unknown) {
+    const message = err instanceof Error ? err.message : "Unknown error";
+    res.status(404).json({ error: message });
+  }
+});
+
+router.put("/file/:repo/*path", async (req, res) => {
+  try {
+    await writeFile(req.params.repo, req.params.path, req.body.content);
+    res.json({ ok: true });
+  } catch (err: unknown) {
+    const message = err instanceof Error ? err.message : "Unknown error";
+    res.status(500).json({ error: message });
+  }
+});
+
+router.delete("/file/:repo/*path", async (req, res) => {
+  try {
+    await deleteFile(req.params.repo, req.params.path);
+    res.json({ ok: true });
+  } catch (err: unknown) {
+    const message = err instanceof Error ? err.message : "Unknown error";
+    res.status(500).json({ error: message });
+  }
+});
+
+export default router;
diff --git a/packages/backend/src/services/editor.service.ts b/packages/backend/src/services/editor.service.ts
new file mode 100644
index 0000000..2b997d8
--- /dev/null
+++ b/packages/backend/src/services/editor.service.ts
@@ -0,0 +1,84 @@
+import fs from "fs/promises";
+import path from "path";
+
+const WORKSPACE_PATH = process.env.WORKSPACE_PATH || "/workspace";
+
+export interface FileNode {
+  name: string;
+  path: string;
+  type: "file" | "directory";
+  children?: FileNode[];
+}
+
+const IGNORED_DIRS = new Set(["node_modules", ".git", ".nasher"]);
+
+export async function getDirectoryTree(
+  repo: string,
+  subPath: string = "",
+): Promise<FileNode[]> {
+  const fullPath = resolveRepoPath(repo, subPath);
+  const entries = await fs.readdir(fullPath, { withFileTypes: true });
+  const nodes: FileNode[] = [];
+
+  const sorted = entries.sort((a, b) => {
+    if (a.isDirectory() && !b.isDirectory()) return -1;
+    if (!a.isDirectory() && b.isDirectory()) return 1;
+    return a.name.localeCompare(b.name);
+  });
+
+  for (const entry of sorted) {
+    if (entry.name.startsWith(".") && entry.name !== ".gitignore") continue;
+
+    const relativePath = subPath ? `${subPath}/${entry.name}` : entry.name;
+
+    if (entry.isDirectory()) {
+      if (IGNORED_DIRS.has(entry.name)) continue;
+      const children = await getDirectoryTree(repo, relativePath);
+      nodes.push({
+        name: entry.name,
+        path: relativePath,
+        type: "directory",
+        children,
+      });
+    } else {
+      nodes.push({ name: entry.name, path: relativePath, type: "file" });
+    }
+  }
+
+  return nodes;
+}
+
+export async function readFile(
+  repo: string,
+  filePath: string,
+): Promise<string> {
+  const fullPath = resolveRepoPath(repo, filePath);
+  return fs.readFile(fullPath, "utf-8");
+}
+
+export async function writeFile(
+  repo: string,
+  filePath: string,
+  content: string,
+): Promise<void> {
+  const fullPath = resolveRepoPath(repo, filePath);
+  await fs.mkdir(path.dirname(fullPath), { recursive: true });
+  await fs.writeFile(fullPath, content, "utf-8");
+}
+
+export async function deleteFile(
+  repo: string,
+  filePath: string,
+): Promise<void> {
+  const fullPath = resolveRepoPath(repo, filePath);
+  await fs.unlink(fullPath);
+}
+
+function resolveRepoPath(repo: string, filePath: string): string {
+  const repoRoot = path.resolve(path.join(WORKSPACE_PATH, "repos", repo));
+  const resolved = path.resolve(repoRoot, filePath);
+  if (!resolved.startsWith(repoRoot)) {
+    throw new Error("Path traversal detected");
+  }
+  return resolved;
+}
diff --git a/packages/frontend/src/App.tsx b/packages/frontend/src/App.tsx
index fb4249d..701bc42 100644
--- a/packages/frontend/src/App.tsx
+++ b/packages/frontend/src/App.tsx
@@ -1,13 +1,54 @@
 import { BrowserRouter, Routes, Route } from "react-router-dom";
+import { useState, useCallback } from "react";
 import { Dashboard } from "./pages/Dashboard";
 import { Editor } from "./pages/Editor";
+import { IDELayout } from "./layouts/IDELayout";
+import { FileExplorer } from "./components/editor/FileExplorer";
+import { api } from "./services/api";
+import { useEditorState } from "./hooks/useEditorState";
+
+const DEFAULT_REPO = "nwn-module";
 
 export function App() {
+  const editorState = useEditorState();
+  const [selectedFilePath, setSelectedFilePath] = useState<string | null>(null);
+
+  const handleFileSelect = useCallback(
+    async (repo: string, filePath: string) => {
+      setSelectedFilePath(filePath);
+      const tabKey = `${repo}:${filePath}`;
+      if (editorState.getContent(tabKey) !== undefined) {
+        editorState.selectTab(tabKey);
+        return;
+      }
+      try {
+        const { content } = await api.editor.readFile(repo, filePath);
+        editorState.openFile(tabKey, content);
+      } catch (err) {
+        console.error("Failed to load file:", err);
+      }
+    },
+    [editorState],
+  );
+
+  const sidebar = (
+    <FileExplorer
+      repo={DEFAULT_REPO}
+      selectedPath={selectedFilePath}
+      onFileSelect={handleFileSelect}
+    />
+  );
+
   return (
     <BrowserRouter>
       <Routes>
-        <Route path="/" element={<Dashboard />} />
-        <Route path="/editor" element={<Editor />} />
+        <Route element={<IDELayout sidebar={sidebar} />}>
+          <Route path="/" element={<Dashboard />} />
+          <Route
+            path="/editor"
+            element={<Editor editorState={editorState} />}
+          />
+        </Route>
       </Routes>
     </BrowserRouter>
   );
diff --git a/packages/frontend/src/components/editor/FileExplorer.tsx b/packages/frontend/src/components/editor/FileExplorer.tsx
new file mode 100644
index 0000000..5c372e5
--- /dev/null
+++ b/packages/frontend/src/components/editor/FileExplorer.tsx
@@ -0,0 +1,215 @@
+import { useState, useEffect, useCallback } from "react";
+import { api, type FileNode } from "../../services/api";
+
+interface FileExplorerProps {
+  repo: string;
+  selectedPath: string | null;
+  onFileSelect: (repo: string, filePath: string) => void;
+}
+
+function getFileIcon(name: string): string {
+  const ext = name.split(".").pop()?.toLowerCase();
+  switch (ext) {
+    case "nss":
+      return "S";
+    case "json":
+      return "J";
+    case "xml":
+    case "html":
+      return "<>";
+    case "md":
+      return "M";
+    case "yml":
+    case "yaml":
+      return "Y";
+    case "png":
+    case "jpg":
+    case "jpeg":
+    case "gif":
+    case "bmp":
+    case "tga":
+      return "I";
+    case "2da":
+      return "2";
+    case "ncs":
+      return "C";
+    case "git":
+    case "are":
+    case "ifo":
+    case "utc":
+    case "uti":
+    case "utp":
+    case "utd":
+    case "ute":
+    case "utm":
+    case "utt":
+    case "uts":
+    case "utw":
+    case "dlg":
+    case "jrl":
+    case "fac":
+      return "N";
+    default:
+      return "F";
+  }
+}
+
+function FileTreeNode({
+  node,
+  depth,
+  selectedPath,
+  onFileSelect,
+  repo,
+}: {
+  node: FileNode;
+  depth: number;
+  selectedPath: string | null;
+  onFileSelect: (repo: string, filePath: string) => void;
+  repo: string;
+}) {
+  const [expanded, setExpanded] = useState(depth === 0);
+  const isSelected = selectedPath === node.path;
+
+  const handleClick = useCallback(() => {
+    if (node.type === "directory") {
+      setExpanded((prev) => !prev);
+    } else {
+      onFileSelect(repo, node.path);
+    }
+  }, [node, repo, onFileSelect]);
+
+  return (
+    <div>
+      <button
+        onClick={handleClick}
+        className="flex w-full items-center gap-1 px-1 py-0.5 text-left text-sm transition-colors hover:bg-white/5"
+        style={{
+          paddingLeft: `${depth * 16 + 8}px`,
+          backgroundColor: isSelected ? "var(--forge-surface)" : undefined,
+          color: isSelected ? "var(--forge-text)" : "var(--forge-text-secondary)",
+          fontFamily: "'JetBrains Mono', 'Fira Code', monospace",
+          fontSize: "13px",
+        }}
+      >
+        {node.type === "directory" ? (
+          <span
+            className="inline-block w-4 text-center text-xs"
+            style={{ color: "var(--forge-text-secondary)" }}
+          >
+            {expanded ? "\u25BC" : "\u25B6"}
+          </span>
+        ) : (
+          <span
+            className="inline-block w-4 text-center text-xs font-bold"
+            style={{ color: "var(--forge-accent)", fontSize: "10px" }}
+          >
+            {getFileIcon(node.name)}
+          </span>
+        )}
+        <span className="truncate">{node.name}</span>
+      </button>
+      {node.type === "directory" && expanded && node.children && (
+        <div>
+          {node.children.map((child) => (
+            <FileTreeNode
+              key={child.path}
+              node={child}
+              depth={depth + 1}
+              selectedPath={selectedPath}
+              onFileSelect={onFileSelect}
+              repo={repo}
+            />
+          ))}
+        </div>
+      )}
+    </div>
+  );
+}
+
+export function FileExplorer({
+  repo,
+  selectedPath,
+  onFileSelect,
+}: FileExplorerProps) {
+  const [tree, setTree] = useState<FileNode[]>([]);
+  const [loading, setLoading] = useState(true);
+  const [error, setError] = useState<string | null>(null);
+
+  const loadTree = useCallback(async () => {
+    if (!repo) return;
+    setLoading(true);
+    setError(null);
+    try {
+      const data = await api.editor.tree(repo);
+      setTree(data);
+    } catch (err) {
+      setError(err instanceof Error ? err.message : "Failed to load files");
+    } finally {
+      setLoading(false);
+    }
+  }, [repo]);
+
+  useEffect(() => {
+    loadTree();
+  }, [loadTree]);
+
+  return (
+    <div
+      className="flex h-full flex-col overflow-hidden"
+      style={{ backgroundColor: "var(--forge-bg)" }}
+    >
+      <div
+        className="flex items-center justify-between px-3 py-2"
+        style={{ borderBottom: "1px solid var(--forge-border)" }}
+      >
+        <span
+          className="text-xs font-semibold uppercase tracking-wider"
+          style={{ color: "var(--forge-text-secondary)" }}
+        >
+          Explorer
+        </span>
+        <button
+          onClick={loadTree}
+          className="rounded p-1 text-xs transition-colors hover:bg-white/10"
+          style={{ color: "var(--forge-text-secondary)" }}
+          title="Refresh"
+        >
+          &#x21bb;
+        </button>
+      </div>
+
+      <div className="flex-1 overflow-y-auto py-1">
+        {loading && (
+          <div className="px-3 py-4 text-sm" style={{ color: "var(--forge-text-secondary)" }}>
+            Loading...
+          </div>
+        )}
+
+        {error && (
+          <div className="px-3 py-4 text-sm text-red-400">
+            {error}
+          </div>
+        )}
+
+        {!loading && !error && tree.length === 0 && (
+          <div className="px-3 py-4 text-sm" style={{ color: "var(--forge-text-secondary)" }}>
+            No files found
+          </div>
+        )}
+
+        {!loading &&
+          !error &&
+          tree.map((node) => (
+            <FileTreeNode
+              key={node.path}
+              node={node}
+              depth={0}
+              selectedPath={selectedPath}
+              onFileSelect={onFileSelect}
+              repo={repo}
+            />
+          ))}
+      </div>
+    </div>
+  );
+}
diff --git a/packages/frontend/src/layouts/IDELayout.tsx b/packages/frontend/src/layouts/IDELayout.tsx
new file mode 100644
index 0000000..7ad3f42
--- /dev/null
+++ b/packages/frontend/src/layouts/IDELayout.tsx
@@ -0,0 +1,39 @@
+import { Outlet } from "react-router-dom";
+
+export function IDELayout({ sidebar }: { sidebar?: React.ReactNode }) {
+  return (
+    <div className="flex h-screen flex-col overflow-hidden" style={{ backgroundColor: "var(--forge-bg)" }}>
+      <header
+        className="flex shrink-0 items-center px-4 py-2"
+        style={{ borderBottom: "1px solid var(--forge-border)" }}
+      >
+        <h1
+          className="text-lg font-bold"
+          style={{
+            fontFamily: "'Baskerville', 'Georgia', 'Palatino', serif",
+            color: "var(--forge-accent)",
+          }}
+        >
+          Layonara Forge
+        </h1>
+      </header>
+
+      <div className="flex flex-1 overflow-hidden">
+        {sidebar && (
+          <aside
+            className="shrink-0 overflow-hidden"
+            style={{
+              width: "250px",
+              borderRight: "1px solid var(--forge-border)",
+            }}
+          >
+            {sidebar}
+          </aside>
+        )}
+        <main className="flex-1 overflow-hidden">
+          <Outlet />
+        </main>
+      </div>
+    </div>
+  );
+}
diff --git a/packages/frontend/src/pages/Editor.tsx b/packages/frontend/src/pages/Editor.tsx
index bb9ed65..afccf0a 100644
--- a/packages/frontend/src/pages/Editor.tsx
+++ b/packages/frontend/src/pages/Editor.tsx
@@ -1,9 +1,18 @@
 import { useCallback, useMemo } from "react";
 import { MonacoEditor } from "../components/editor/MonacoEditor";
 import { EditorTabs } from "../components/editor/EditorTabs";
-import { useEditorState } from "../hooks/useEditorState";
 
-export function Editor() {
+interface EditorProps {
+  editorState: ReturnType<typeof import("../hooks/useEditorState").useEditorState>;
+}
+
+function displayName(tabKey: string): string {
+  const parts = tabKey.split(":");
+  const filePath = parts.length > 1 ? parts.slice(1).join(":") : tabKey;
+  return filePath.split("/").pop() ?? filePath;
+}
+
+export function Editor({ editorState }: EditorProps) {
   const {
     openTabs,
     activeTab,
@@ -12,7 +21,7 @@ export function Editor() {
     closeFile,
     updateContent,
     getContent,
-  } = useEditorState();
+  } = editorState;
 
   const tabs = useMemo(
     () =>
@@ -24,6 +33,11 @@ export function Editor() {
   );
 
   const activeContent = activeTab ? (getContent(activeTab) ?? "") : "";
+  const activeFilePath = activeTab
+    ? activeTab.includes(":")
+      ? activeTab.split(":").slice(1).join(":")
+      : activeTab
+    : "";
 
   const handleChange = useCallback(
     (value: string) => {
@@ -35,7 +49,7 @@ export function Editor() {
   );
 
   return (
-    <div className="flex h-screen flex-col" style={{ backgroundColor: "var(--forge-bg)" }}>
+    <div className="flex h-full flex-col" style={{ backgroundColor: "var(--forge-bg)" }}>
       <EditorTabs
         tabs={tabs}
         activeTab={activeTab}
@@ -46,7 +60,7 @@ export function Editor() {
         {activeTab ? (
           <MonacoEditor
             key={activeTab}
-            filePath={activeTab}
+            filePath={activeFilePath}
             content={activeContent}
             onChange={handleChange}
           />
diff --git a/packages/frontend/src/services/api.ts b/packages/frontend/src/services/api.ts
index 2a37263..9f00223 100644
--- a/packages/frontend/src/services/api.ts
+++ b/packages/frontend/src/services/api.ts
@@ -12,9 +12,29 @@ async function request<T>(path: string, options?: RequestInit): Promise<T> {
   return res.json();
 }
 
+export interface FileNode {
+  name: string;
+  path: string;
+  type: "file" | "directory";
+  children?: FileNode[];
+}
+
 export const api = {
   health: () => request<{ status: string; wsClients: number }>("/health"),
 
+  editor: {
+    tree: (repo: string) => request<FileNode[]>(`/editor/tree/${repo}`),
+    readFile: (repo: string, filePath: string) =>
+      request<{ content: string }>(`/editor/file/${repo}/${filePath}`),
+    writeFile: (repo: string, filePath: string, content: string) =>
+      request(`/editor/file/${repo}/${filePath}`, {
+        method: "PUT",
+        body: JSON.stringify({ content }),
+      }),
+    deleteFile: (repo: string, filePath: string) =>
+      request(`/editor/file/${repo}/${filePath}`, { method: "DELETE" }),
+  },
+
   workspace: {
     getConfig: () => request<Record<string, unknown>>("/workspace/config"),
     updateConfig: (data: Record<string, unknown>) =>