diff --git a/src/lib/components/CaptionSettingsPanel.svelte b/src/lib/components/CaptionSettingsPanel.svelte
new file mode 100644
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+++ b/src/lib/components/CaptionSettingsPanel.svelte
@@ -0,0 +1,329 @@
+<script lang="ts">
+  import { onMount } from 'svelte';
+  import {
+    preferences,
+    setCaptionSettings,
+    DEFAULT_CAPTION_SETTINGS,
+    type CaptionSettings,
+  } from '$lib/stores/preferences.svelte';
+  import { listSystemFonts } from '$lib/bindings/mediaAnalysis';
+
+  let { onClose }: { onClose: () => void } = $props();
+
+  let settings = $derived(preferences.captionSettings);
+  let systemFonts = $state<string[]>(['Arial']);
+
+  onMount(async () => {
+    try {
+      systemFonts = await listSystemFonts();
+    } catch {
+      systemFonts = ['Arial', 'Helvetica', 'Verdana', 'Georgia', 'Times New Roman', 'Courier New', 'Impact'];
+    }
+  });
+
+  function update(partial: Partial<CaptionSettings>) {
+    // Enforce mutual exclusivity
+    if (partial.backgroundEnabled) {
+      partial.shadowEnabled = false;
+    } else if (partial.shadowEnabled) {
+      partial.backgroundEnabled = false;
+    }
+    setCaptionSettings(partial);
+  }
+
+  function resetToDefaults() {
+    setCaptionSettings({ ...DEFAULT_CAPTION_SETTINGS });
+  }
+</script>
+
+<div class="panel">
+  <div class="panel-header">
+    <h3>Caption Appearance</h3>
+    <button class="close-btn" onclick={onClose} title="Close">x</button>
+  </div>
+
+  <div class="scroll-area">
+    <!-- Font Family -->
+    <div class="control">
+      <label>Font</label>
+      <select
+        value={settings.fontFamily}
+        onchange={(e) => update({ fontFamily: (e.target as HTMLSelectElement).value })}
+      >
+        {#each systemFonts as font}
+          <option value={font} style="font-family: {font}">{font}</option>
+        {/each}
+      </select>
+    </div>
+
+    <!-- Font Size -->
+    <div class="control">
+      <label>
+        Font Size
+        <span class="value">{settings.fontSize}px</span>
+      </label>
+      <input
+        type="range" min="12" max="36" step="1"
+        value={settings.fontSize}
+        oninput={(e) => update({ fontSize: parseInt((e.target as HTMLInputElement).value, 10) })}
+      />
+    </div>
+
+    <!-- Text Color + Bold -->
+    <div class="control row">
+      <label>Text Color</label>
+      <div class="row-controls">
+        <input
+          type="color" value={settings.textColor}
+          oninput={(e) => update({ textColor: (e.target as HTMLInputElement).value })}
+        />
+        <label class="inline-check">
+          <input type="checkbox" checked={settings.bold}
+            onchange={(e) => update({ bold: (e.target as HTMLInputElement).checked })} />
+          Bold
+        </label>
+      </div>
+    </div>
+
+    <!-- Dimmed Text Color -->
+    <div class="control">
+      <label>Dimmed Text</label>
+      <div class="radio-row">
+        <label>
+          <input type="radio" name="dimmed-mode" value="auto"
+            checked={settings.dimmedColorMode === 'auto'}
+            onchange={() => update({ dimmedColorMode: 'auto' })} />
+          Auto
+        </label>
+        <label>
+          <input type="radio" name="dimmed-mode" value="custom"
+            checked={settings.dimmedColorMode === 'custom'}
+            onchange={() => update({ dimmedColorMode: 'custom' })} />
+          Custom
+        </label>
+      </div>
+    </div>
+    {#if settings.dimmedColorMode === 'auto'}
+      <div class="control">
+        <label>
+          Dim Opacity
+          <span class="value">{Math.round(settings.dimmedOpacity * 100)}%</span>
+        </label>
+        <input
+          type="range" min="10" max="90" step="5"
+          value={Math.round(settings.dimmedOpacity * 100)}
+          oninput={(e) => update({ dimmedOpacity: parseInt((e.target as HTMLInputElement).value, 10) / 100 })}
+        />
+      </div>
+    {:else}
+      <div class="control row">
+        <label>Dimmed Color</label>
+        <div class="row-controls">
+          <input
+            type="color" value={settings.dimmedColor}
+            oninput={(e) => update({ dimmedColor: (e.target as HTMLInputElement).value })}
+          />
+        </div>
+      </div>
+    {/if}
+
+    <!-- Outline -->
+    <div class="control row">
+      <label>
+        <input type="checkbox" checked={settings.textOutline}
+          onchange={(e) => update({ textOutline: (e.target as HTMLInputElement).checked })} />
+        Outline
+      </label>
+      <div class="row-controls">
+        <input
+          type="color" value={settings.outlineColor}
+          disabled={!settings.textOutline}
+          class:disabled={!settings.textOutline}
+          oninput={(e) => update({ outlineColor: (e.target as HTMLInputElement).value })}
+        />
+      </div>
+    </div>
+
+    <!-- Background (mutually exclusive with Shadow) -->
+    <div class="control row">
+      <label>
+        <input type="checkbox" checked={settings.backgroundEnabled}
+          onchange={(e) => update({ backgroundEnabled: (e.target as HTMLInputElement).checked })} />
+        Background
+      </label>
+      <div class="row-controls">
+        <input
+          type="color" value={settings.backgroundColor}
+          disabled={!settings.backgroundEnabled}
+          class:disabled={!settings.backgroundEnabled}
+          oninput={(e) => update({ backgroundColor: (e.target as HTMLInputElement).value })}
+        />
+      </div>
+    </div>
+    {#if settings.backgroundEnabled}
+      <div class="control">
+        <label>
+          BG Opacity
+          <span class="value">{Math.round(settings.backgroundOpacity * 100)}%</span>
+        </label>
+        <input
+          type="range" min="0" max="100" step="5"
+          value={Math.round(settings.backgroundOpacity * 100)}
+          oninput={(e) => update({ backgroundOpacity: parseInt((e.target as HTMLInputElement).value, 10) / 100 })}
+        />
+      </div>
+    {/if}
+
+    <!-- Shadow (mutually exclusive with Background) -->
+    <div class="control row">
+      <label>
+        <input type="checkbox" checked={settings.shadowEnabled}
+          onchange={(e) => update({ shadowEnabled: (e.target as HTMLInputElement).checked })} />
+        Drop Shadow
+      </label>
+      <div class="row-controls">
+        <input
+          type="color" value={settings.shadowColor}
+          disabled={!settings.shadowEnabled}
+          class:disabled={!settings.shadowEnabled}
+          oninput={(e) => update({ shadowColor: (e.target as HTMLInputElement).value })}
+        />
+      </div>
+    </div>
+    {#if settings.shadowEnabled}
+      <div class="control">
+        <label>
+          Shadow Depth
+          <span class="value">{settings.shadowDepth}px</span>
+        </label>
+        <input
+          type="range" min="1" max="5" step="1"
+          value={settings.shadowDepth}
+          oninput={(e) => update({ shadowDepth: parseInt((e.target as HTMLInputElement).value, 10) })}
+        />
+      </div>
+    {/if}
+
+    <!-- Position -->
+    <div class="control">
+      <label>Position</label>
+      <div class="radio-row">
+        <label>
+          <input type="radio" name="caption-position" value="bottom"
+            checked={settings.position === 'bottom'}
+            onchange={() => update({ position: 'bottom' })} />
+          Bottom
+        </label>
+        <label>
+          <input type="radio" name="caption-position" value="top"
+            checked={settings.position === 'top'}
+            onchange={() => update({ position: 'top' })} />
+          Top
+        </label>
+      </div>
+    </div>
+
+    <!-- Word Highlight -->
+    <div class="control">
+      <label>
+        <input type="checkbox" checked={settings.wordHighlight}
+          onchange={(e) => update({ wordHighlight: (e.target as HTMLInputElement).checked })} />
+        Word-by-word highlight
+      </label>
+    </div>
+  </div>
+
+  <div class="panel-footer">
+    <button class="reset-btn" onclick={resetToDefaults}>Reset to defaults</button>
+  </div>
+</div>
+
+<style>
+  .panel {
+    position: absolute;
+    bottom: 44px;
+    right: 12px;
+    background: var(--bg-primary, #1e1e2e);
+    border: 1px solid var(--border, #353550);
+    border-radius: 8px;
+    padding: 12px 16px;
+    width: 320px;
+    max-height: 480px;
+    display: flex;
+    flex-direction: column;
+    z-index: 20;
+    box-shadow: 0 8px 24px rgba(0, 0, 0, 0.5);
+  }
+
+  .panel-header {
+    display: flex;
+    justify-content: space-between;
+    align-items: center;
+    margin-bottom: 8px;
+    flex-shrink: 0;
+  }
+
+  h3 { margin: 0; font-size: 13px; font-weight: 600; color: var(--text-primary, #cdd6f4); }
+
+  .close-btn {
+    background: none; border: none; color: var(--text-secondary, #6c7086);
+    cursor: pointer; font-size: 14px; padding: 2px 6px; border-radius: 3px;
+  }
+  .close-btn:hover { background: var(--bg-tertiary, #2a2a3e); color: var(--text-primary, #cdd6f4); }
+
+  .scroll-area {
+    overflow-y: auto;
+    flex: 1;
+    min-height: 0;
+    padding-right: 4px;
+  }
+
+  .control { margin-bottom: 10px; }
+  .control label {
+    display: flex; align-items: center; gap: 6px;
+    font-size: 12px; color: var(--text-secondary, #6c7086); margin-bottom: 4px;
+  }
+  .control.row { display: flex; align-items: center; justify-content: space-between; }
+  .control.row > label { margin-bottom: 0; }
+
+  .row-controls { display: flex; align-items: center; gap: 8px; }
+  .inline-check {
+    display: flex; align-items: center; gap: 4px;
+    font-size: 12px; color: var(--text-secondary, #6c7086);
+    margin-bottom: 0 !important; cursor: pointer;
+  }
+
+  .value {
+    margin-left: auto; font-size: 11px;
+    color: var(--text-primary, #cdd6f4); font-variant-numeric: tabular-nums;
+  }
+
+  select {
+    width: 100%; padding: 4px 6px; font-size: 12px;
+    background: var(--bg-secondary, #252535); color: var(--text-primary, #cdd6f4);
+    border: 1px solid var(--border, #353550); border-radius: 4px;
+  }
+
+  input[type='range'] { width: 100%; accent-color: #89b4fa; }
+  input[type='color'] {
+    width: 32px; height: 24px; padding: 0;
+    border: 1px solid var(--border, #353550); border-radius: 3px;
+    cursor: pointer; background: none;
+  }
+  input[type='color'].disabled { opacity: 0.3; cursor: not-allowed; }
+  input[type='checkbox'] { accent-color: #89b4fa; }
+  input[type='radio'] { accent-color: #89b4fa; }
+
+  .radio-row { display: flex; gap: 16px; }
+  .radio-row label { font-size: 12px; color: var(--text-secondary, #6c7086); cursor: pointer; }
+
+  .panel-footer {
+    margin-top: 8px; padding-top: 8px; flex-shrink: 0;
+    border-top: 1px solid var(--border, #353550);
+  }
+  .reset-btn {
+    font-size: 11px; color: var(--text-secondary, #6c7086);
+    background: none; border: none; cursor: pointer; padding: 2px 0;
+  }
+  .reset-btn:hover { color: var(--text-primary, #cdd6f4); }
+</style>