diff --git a/src/lib/components/VideoPlayer.svelte b/src/lib/components/VideoPlayer.svelte
index c444a27..36842e3 100644
--- a/src/lib/components/VideoPlayer.svelte
+++ b/src/lib/components/VideoPlayer.svelte
@@ -1,12 +1,122 @@
 <script lang="ts">
-  import { session } from '$lib/stores/videoSession.svelte';
+  import { session, upgradePreview, dismissUpgradeToast } from '$lib/stores/videoSession.svelte';
+  import { setVideoElement } from '$lib/transport/playback';
+  import { preferences } from '$lib/stores/preferences.svelte';
+  import { parseVtt, getActiveCues, getActiveWords, type VttCue } from '$lib/utils/vttParser';
+  import { getMediaServerPort } from '$lib/bindings/video';
+  import CaptionSettingsPanel from '$lib/components/CaptionSettingsPanel.svelte';
+
+  function hexToRgb(hex: string): string {
+    const h = hex.replace('#', '');
+    const r = parseInt(h.substring(0, 2), 16);
+    const g = parseInt(h.substring(2, 4), 16);
+    const b = parseInt(h.substring(4, 6), 16);
+    return `${r}, ${g}, ${b}`;
+  }
 
   let videoElement = $state<HTMLVideoElement | null>(null);
+  let videoError = $state<string | null>(null);
+  let videoSrc = $state<string | null>(null);
+  let captionsEnabled = $state(true);
+  let showCaptionSettings = $state(false);
+  let parsedCues = $state<VttCue[]>([]);
+  let mediaServerPort = $state<number | null>(null);
+
+  // Fetch media server port on mount
+  $effect(() => {
+    getMediaServerPort().then((port) => {
+      mediaServerPort = port;
+    });
+  });
+
+  // Active cues at current time
+  let activeCues = $derived(
+    captionsEnabled ? getActiveCues(parsedCues, session.currentTime) : []
+  );
+
+  let captionStyle = $derived.by(() => {
+    const s = preferences.captionSettings;
+    const bg = s.backgroundEnabled
+      ? `rgba(${hexToRgb(s.backgroundColor)}, ${s.backgroundOpacity})`
+      : 'transparent';
+    const shadow = s.shadowEnabled
+      ? `${s.shadowDepth}px ${s.shadowDepth}px ${s.shadowDepth * 2}px ${s.shadowColor}`
+      : s.textOutline
+        ? '1px 1px 2px rgba(0,0,0,0.9), -1px -1px 2px rgba(0,0,0,0.9)'
+        : 'none';
+    return {
+      fontFamily: s.fontFamily,
+      fontSize: `${s.fontSize}px`,
+      fontWeight: s.bold ? 'bold' : 'normal',
+      color: s.textColor,
+      background: bg,
+      textShadow: shadow,
+    };
+  });
+
+  let captionPosition = $derived(
+    preferences.captionSettings.position === 'top' ? 'top: 8%' : 'bottom: 8%'
+  );
+
+  $effect(() => {
+    setVideoElement(videoElement);
+    return () => setVideoElement(null);
+  });
+
+  $effect(() => {
+    const filePath = session.activeVideoPath;
+    const status = session.previewStatus;
+    const port = mediaServerPort;
+
+    if (status === 'complete' && filePath && port) {
+      videoSrc = `http://127.0.0.1:${port}${encodeURI(filePath)}`;
+    } else {
+      videoSrc = null;
+    }
+  });
+
+  // Load and parse VTT caption file
+  $effect(() => {
+    const captionPath = session.captionFilePath;
+    const port = mediaServerPort;
+
+    if (captionPath && port) {
+      const url = `http://127.0.0.1:${port}${encodeURI(captionPath)}`;
+      fetch(url)
+        .then((res) => {
+          if (!res.ok) throw new Error(`HTTP ${res.status} for ${url}`);
+          return res.text();
+        })
+        .then((vttText) => {
+          parsedCues = parseVtt(vttText);
+          console.log(`[VideoPlayer] parsed ${parsedCues.length} caption cues from ${captionPath}`);
+        })
+        .catch((err) => {
+          console.error('Failed to load caption file:', err);
+          parsedCues = [];
+        });
+    } else {
+      parsedCues = [];
+    }
+  });
+
+  function toggleCaptions() {
+    captionsEnabled = !captionsEnabled;
+  }
+
+  function toggleCaptionSettings() {
+    showCaptionSettings = !showCaptionSettings;
+  }
+
+  let lastTimeUpdate = 0;
+  const TIME_UPDATE_INTERVAL = 66;
 
   function handleTimeUpdate() {
-    if (videoElement) {
-      session.currentTime = videoElement.currentTime;
-    }
+    if (!videoElement) return;
+    const now = performance.now();
+    if (now - lastTimeUpdate < TIME_UPDATE_INTERVAL) return;
+    lastTimeUpdate = now;
+    session.currentTime = videoElement.currentTime;
   }
 
   function handlePlay() {
@@ -17,6 +127,28 @@
     session.isPlaying = false;
   }
 
+  function handleError() {
+    if (videoElement?.error) {
+      videoError = `Video error: ${videoElement.error.message || 'Failed to load source'}`;
+    }
+  }
+
+  function handleLoadedData() {
+    videoError = null;
+    if (videoElement) {
+      console.log('[VideoPlayer] loadeddata:', {
+        src: videoElement.src,
+        muted: videoElement.muted,
+        volume: videoElement.volume,
+        readyState: videoElement.readyState,
+        duration: videoElement.duration,
+        audioTracks: (videoElement as any).audioTracks?.length ?? 'N/A',
+        videoWidth: videoElement.videoWidth,
+        videoHeight: videoElement.videoHeight,
+      });
+    }
+  }
+
   export function seek(time: number) {
     if (videoElement) {
       videoElement.currentTime = time;
@@ -25,7 +157,9 @@
   }
 
   export function play() {
-    videoElement?.play();
+    videoElement?.play().catch((e) => {
+      console.error('play() rejected:', e);
+    });
   }
 
   export function pause() {
@@ -35,7 +169,9 @@
   export function togglePlayPause() {
     if (!videoElement) return;
     if (videoElement.paused) {
-      videoElement.play();
+      videoElement.play().catch((e) => {
+        console.error('play() rejected:', e);
+      });
     } else {
       videoElement.pause();
     }
@@ -47,21 +183,78 @@
 </script>
 
 <div class="video-player">
-  {#if session.status === 'ready' && session.streamUrl}
+  {#if session.status === 'ready' && session.previewStatus === 'complete' && videoSrc}
     <video
       bind:this={videoElement}
-      src={session.streamUrl}
+      src={videoSrc}
       ontimeupdate={handleTimeUpdate}
       onplay={handlePlay}
       onpause={handlePause}
-      preload="auto"
-    >
-      <track kind="captions" />
-    </video>
+      onerror={handleError}
+      onloadeddata={handleLoadedData}
+      preload="metadata"
+      playsinline
+    ></video>
+    {#if activeCues.length > 0}
+      <div class="caption-overlay" style={captionPosition}>
+        {#each activeCues as cue}
+          <span
+            class="caption-text"
+            style="font-family: {captionStyle.fontFamily}; font-size: {captionStyle.fontSize}; font-weight: {captionStyle.fontWeight}; background: {captionStyle.background}; text-shadow: {captionStyle.textShadow};"
+          >{#if preferences.captionSettings.wordHighlight && cue.words}{#each getActiveWords(cue, session.currentTime) as word}<span
+                class="caption-word"
+                class:spoken={word.spoken}
+                style="color: {word.spoken
+                  ? captionStyle.color
+                  : preferences.captionSettings.dimmedColorMode === 'custom'
+                    ? preferences.captionSettings.dimmedColor
+                    : captionStyle.color}; opacity: {word.spoken ? 1 : (preferences.captionSettings.dimmedColorMode === 'custom' ? 1 : preferences.captionSettings.dimmedOpacity)};"
+              >{word.text}</span>{' '}{/each}{:else}<span style="color: {captionStyle.color};">{cue.text}</span>{/if}</span>
+        {/each}
+      </div>
+    {/if}
+    {#if parsedCues.length > 0}
+      <div class="cc-controls">
+        <button
+          class="cc-toggle"
+          class:active={captionsEnabled}
+          onclick={toggleCaptions}
+          title={captionsEnabled ? 'Hide captions' : 'Show captions'}
+        >CC</button>
+        <button
+          class="cc-settings-btn"
+          onclick={toggleCaptionSettings}
+          title="Caption settings"
+        >⚙</button>
+      </div>
+    {/if}
+    {#if showCaptionSettings}
+      <CaptionSettingsPanel onClose={() => (showCaptionSettings = false)} />
+    {/if}
+    {#if session.showUpgradeToast}
+      <div class="upgrade-toast">
+        <span>Higher quality preview available</span>
+        <button class="upgrade-btn" onclick={upgradePreview}>Upgrade</button>
+        <button class="dismiss-btn" onclick={dismissUpgradeToast}>✕</button>
+      </div>
+    {/if}
+    {#if videoError}
+      <div class="video-overlay-error">{videoError}</div>
+    {/if}
+  {:else if session.status === 'ready' && session.previewStatus === 'downloading'}
+    <div class="placeholder">
+      <div>Downloading preview…</div>
+      <div class="progress-bar">
+        <div class="progress-fill" style="width: {Math.round(session.previewProgress * 100)}%"></div>
+      </div>
+      <div class="progress-text">{Math.round(session.previewProgress * 100)}%</div>
+    </div>
   {:else if session.status === 'resolving'}
     <div class="placeholder">Loading video…</div>
   {:else if session.status === 'error'}
     <div class="placeholder error">{session.error ?? 'Failed to load video.'}</div>
+  {:else if session.status === 'ready' && session.previewStatus === 'idle'}
+    <div class="placeholder">Preparing download…</div>
   {:else}
     <div class="placeholder">Paste a URL above to load a video</div>
   {/if}
@@ -74,8 +267,9 @@
     align-items: center;
     justify-content: center;
     background: #000;
-    min-height: 200px;
+    min-height: 0;
     position: relative;
+    overflow: hidden;
   }
 
   video {
@@ -84,6 +278,77 @@
     object-fit: contain;
   }
 
+  .caption-overlay {
+    position: absolute;
+    left: 0;
+    right: 0;
+    display: flex;
+    flex-direction: column;
+    align-items: center;
+    gap: 2px;
+    pointer-events: none;
+    z-index: 5;
+    padding: 0 10%;
+  }
+
+  .caption-text {
+    display: inline-block;
+    padding: 4px 10px;
+    border-radius: 3px;
+    line-height: 1.4;
+    text-align: center;
+    white-space: pre-wrap;
+    max-width: 80%;
+  }
+
+  .caption-word {
+    transition: opacity 0.1s ease;
+  }
+
+  .caption-word.spoken {
+    opacity: 1;
+  }
+
+  .cc-controls {
+    position: absolute;
+    bottom: 12px;
+    right: 12px;
+    display: flex;
+    gap: 4px;
+    z-index: 10;
+  }
+
+  .cc-toggle,
+  .cc-settings-btn {
+    background: rgba(0, 0, 0, 0.7);
+    color: #ccc;
+    border: 1px solid rgba(255, 255, 255, 0.3);
+    border-radius: 4px;
+    padding: 4px 8px;
+    font-size: 12px;
+    font-weight: 700;
+    cursor: pointer;
+    letter-spacing: 0.5px;
+    transition: background 0.15s, color 0.15s, border-color 0.15s;
+  }
+
+  .cc-toggle:hover,
+  .cc-settings-btn:hover {
+    background: rgba(0, 0, 0, 0.9);
+    color: #fff;
+  }
+
+  .cc-toggle.active {
+    background: rgba(255, 255, 255, 0.9);
+    color: #000;
+    border-color: rgba(255, 255, 255, 0.9);
+  }
+
+  .cc-settings-btn {
+    font-weight: 400;
+    font-size: 14px;
+  }
+
   .placeholder {
     color: var(--text-muted);
     font-size: 16px;
@@ -92,4 +357,84 @@
   .placeholder.error {
     color: var(--danger);
   }
+
+  .video-overlay-error {
+    position: absolute;
+    bottom: 8px;
+    left: 8px;
+    right: 8px;
+    padding: 6px 10px;
+    background: rgba(0, 0, 0, 0.8);
+    color: var(--danger);
+    font-size: 12px;
+    border-radius: 4px;
+    z-index: 20;
+  }
+
+  .progress-bar {
+    width: 200px;
+    height: 6px;
+    background: var(--bg-tertiary);
+    border-radius: 3px;
+    margin: 12px auto 6px;
+    overflow: hidden;
+  }
+
+  .progress-fill {
+    height: 100%;
+    background: var(--accent, #89b4fa);
+    border-radius: 3px;
+    transition: width 0.3s ease;
+  }
+
+  .progress-text {
+    font-size: 13px;
+    color: var(--text-secondary);
+  }
+
+  .upgrade-toast {
+    position: absolute;
+    top: 10px;
+    right: 10px;
+    display: flex;
+    align-items: center;
+    gap: 8px;
+    background: var(--bg-primary, #1e1e2e);
+    border: 1px solid var(--border, #353550);
+    border-radius: 6px;
+    padding: 8px 12px;
+    font-size: 12px;
+    color: var(--text-primary, #cdd6f4);
+    box-shadow: 0 4px 12px rgba(0, 0, 0, 0.4);
+    z-index: 15;
+  }
+
+  .upgrade-btn {
+    background: #89b4fa;
+    color: #1e1e2e;
+    border: none;
+    border-radius: 4px;
+    padding: 4px 10px;
+    font-size: 11px;
+    font-weight: 600;
+    cursor: pointer;
+  }
+
+  .upgrade-btn:hover {
+    background: #b4d0fb;
+  }
+
+  .dismiss-btn {
+    background: none;
+    border: none;
+    color: var(--text-secondary, #6c7086);
+    cursor: pointer;
+    font-size: 14px;
+    padding: 2px 4px;
+    line-height: 1;
+  }
+
+  .dismiss-btn:hover {
+    color: var(--text-primary, #cdd6f4);
+  }
 </style>