diff --git a/frontend/src/components/HomeComponents/Tasks/Tasks.tsx b/frontend/src/components/HomeComponents/Tasks/Tasks.tsx
index 7229bfc2..8f0e18df 100644
--- a/frontend/src/components/HomeComponents/Tasks/Tasks.tsx
+++ b/frontend/src/components/HomeComponents/Tasks/Tasks.tsx
@@ -104,6 +104,7 @@ export const Tasks = (
     due: '',
     tags: [] as string[],
   });
+  const [isCreatingNewProject, setIsCreatingNewProject] = useState(false);
   const [isAddTaskOpen, setIsAddTaskOpen] = useState(false);
   const [_isDialogOpen, setIsDialogOpen] = useState(false);
   const [tagInput, setTagInput] = useState('');
@@ -286,6 +287,12 @@ export const Tasks = (
     fetchTasksForEmail();
   }, [props.email]);
 
+  useEffect(() => {
+    if (!isAddTaskOpen) {
+      setIsCreatingNewProject(false);
+    }
+  }, [isAddTaskOpen]);
+
   syncTasksWithTwAndDb = useCallback(async () => {
     try {
       const { email: user_email, encryptionSecret, UUID } = props;
@@ -308,8 +315,16 @@ export const Tasks = (
           .where('email')
           .equals(user_email)
           .toArray();
-        setTasks(sortTasksById(updatedTasks, 'desc'));
-        setTempTasks(sortTasksById(updatedTasks, 'desc'));
+        const sortedTasks = sortTasksById(updatedTasks, 'desc');
+        setTasks(sortedTasks);
+        setTempTasks(sortedTasks);
+
+        // Update unique projects after a successful sync so the Project dropdown is populated
+        const projectsSet = new Set(sortedTasks.map((task) => task.project));
+        const filteredProjects = Array.from(projectsSet)
+          .filter((project) => project !== '')
+          .sort((a, b) => (a > b ? 1 : -1));
+        setUniqueProjects(filteredProjects);
       });
 
       // Store last sync timestamp using hashed key
@@ -960,7 +975,7 @@ export const Tasks = (
                     </span>
                     your tasks
                   </h3>
-                  <div className="hidden sm:flex flex-row w-full items-center gap-2 md:gap-4">
+                  <div className="sm:flex flex-row w-full items-center gap-2 md:gap-4">
                     <Input
                       id="search"
                       type="text"
@@ -977,7 +992,7 @@ export const Tasks = (
                       options={uniqueProjects}
                       selectedValues={selectedProjects}
                       onSelectionChange={setSelectedProjects}
-                      className="flex-1 min-w-[140px]"
+                      className="hidden sm:flex-1 min-w-[140px]"
                       icon={<Key lable="p" />}
                     />
                     <MultiSelectFilter
@@ -986,7 +1001,7 @@ export const Tasks = (
                       options={status}
                       selectedValues={selectedStatuses}
                       onSelectionChange={setSelectedStatuses}
-                      className="flex-1 min-w-[140px]"
+                      className="hidden sm:flex-1 min-w-[140px]"
                       icon={<Key lable="s" />}
                     />
                     <MultiSelectFilter
@@ -995,7 +1010,7 @@ export const Tasks = (
                       options={uniqueTags}
                       selectedValues={selectedTags}
                       onSelectionChange={setSelectedTags}
-                      className="flex-1 min-w-[140px]"
+                      className="hidden sm:flex-1 min-w-[140px]"
                       icon={<Key lable="t" />}
                     />
                     <div className="pr-2">
@@ -1075,25 +1090,76 @@ export const Tasks = (
                             </div>
 
                             <div className="grid grid-cols-4 items-center gap-4">
-                              <Label
-                                htmlFor="description"
-                                className="text-right"
-                              >
+                              <Label htmlFor="project" className="text-right">
                                 Project
                               </Label>
-                              <Input
-                                id="project"
-                                name="project"
-                                type=""
-                                value={newTask.project}
-                                onChange={(e) =>
-                                  setNewTask({
-                                    ...newTask,
-                                    project: e.target.value,
-                                  })
-                                }
-                                className="col-span-3"
-                              />
+                              <div className="col-span-3 space-y-2">
+                                <Select
+                                  value={
+                                    isCreatingNewProject
+                                      ? ''
+                                      : newTask.project || ''
+                                  }
+                                  onValueChange={(value: string) => {
+                                    if (value === '') {
+                                      // User selected "create new project" option
+                                      setIsCreatingNewProject(true);
+                                      setNewTask({ ...newTask, project: '' });
+                                    } else {
+                                      // User selected an existing project
+                                      setIsCreatingNewProject(false);
+                                      setNewTask({
+                                        ...newTask,
+                                        project: value,
+                                      });
+                                    }
+                                  }}
+                                >
+                                  <SelectTrigger id="project">
+                                    <SelectValue
+                                      placeholder={
+                                        uniqueProjects.length
+                                          ? 'Select a project'
+                                          : 'No projects yet'
+                                      }
+                                    />
+                                  </SelectTrigger>
+                                  <SelectContent>
+                                    {uniqueProjects.map((project: string) => (
+                                      <SelectItem
+                                        key={project}
+                                        value={project}
+                                        data-testid={`project-option-${project}`}
+                                      >
+                                        {project}
+                                      </SelectItem>
+                                    ))}
+                                    <SelectItem
+                                      value=""
+                                      data-testid="project-option-create"
+                                    >
+                                      + Create new project…
+                                    </SelectItem>
+                                  </SelectContent>
+                                </Select>
+                                {isCreatingNewProject && (
+                                  <Input
+                                    id="project-name"
+                                    name="project"
+                                    placeholder="New project name"
+                                    value={newTask.project}
+                                    autoFocus
+                                    onChange={(
+                                      e: React.ChangeEvent<HTMLInputElement>
+                                    ) =>
+                                      setNewTask({
+                                        ...newTask,
+                                        project: e.target.value,
+                                      })
+                                    }
+                                  />
+                                )}
+                              </div>
                             </div>
                             <div className="grid grid-cols-4 items-center gap-4">
                               <Label htmlFor="due" className="text-right">
@@ -1191,7 +1257,7 @@ export const Tasks = (
                         </DialogContent>
                       </Dialog>
                     </div>
-                    <div className="flex flex-col items-end gap-2">
+                    <div className="hidden sm:flex flex-col items-end gap-2">
                       <Button
                         id="sync-task"
                         variant="outline"
diff --git a/frontend/src/components/HomeComponents/Tasks/__tests__/Tasks.test.tsx b/frontend/src/components/HomeComponents/Tasks/__tests__/Tasks.test.tsx
index b9ded47f..2a742243 100644
--- a/frontend/src/components/HomeComponents/Tasks/__tests__/Tasks.test.tsx
+++ b/frontend/src/components/HomeComponents/Tasks/__tests__/Tasks.test.tsx
@@ -45,6 +45,32 @@ jest.mock('@/components/ui/multi-select', () => ({
   )),
 }));
 
+jest.mock('@/components/ui/select', () => {
+  return {
+    Select: ({ children, onValueChange, value }: any) => (
+      <select
+        data-testid="project-select"
+        value={value}
+        onChange={(e) => onValueChange?.(e.target.value)}
+      >
+        {children}
+      </select>
+    ),
+    SelectTrigger: ({ children }: any) => <>{children}</>,
+    SelectValue: ({ placeholder }: any) => (
+      <option value="" disabled hidden>
+        {placeholder}
+      </option>
+    ),
+    SelectContent: ({ children }: any) => <>{children}</>,
+    SelectItem: ({ value, children, ...props }: any) => (
+      <option value={value} {...props}>
+        {children}
+      </option>
+    ),
+  };
+});
+
 jest.mock('../../BottomBar/BottomBar', () => {
   return jest.fn(() => <div>Mocked BottomBar</div>);
 });
@@ -421,4 +447,42 @@ describe('Tasks Component', () => {
     const firstRow = screen.getAllByRole('row')[1];
     expect(within(firstRow).getByText('Task 1')).toBeInTheDocument();
   });
+
+  test('project dropdown lists existing projects and create-new option', async () => {
+    render(<Tasks {...mockProps} />);
+
+    expect(await screen.findByText('Task 1')).toBeInTheDocument();
+
+    const addTaskButton = screen.getByRole('button', { name: /add task/i });
+    fireEvent.click(addTaskButton);
+
+    const projectSelect = await screen.findByTestId('project-select');
+    expect(
+      within(projectSelect).getByText('Select a project')
+    ).toBeInTheDocument();
+    expect(within(projectSelect).getByText('Engineering')).toBeInTheDocument();
+    expect(within(projectSelect).getByText('ProjectA')).toBeInTheDocument();
+    expect(
+      within(projectSelect).getByText('+ Create new project…')
+    ).toBeInTheDocument();
+  });
+
+  test('selecting "+ Create new project…" reveals inline input', async () => {
+    render(<Tasks {...mockProps} />);
+
+    expect(await screen.findByText('Task 1')).toBeInTheDocument();
+
+    fireEvent.click(screen.getByRole('button', { name: /add task/i }));
+
+    const projectSelect = await screen.findByTestId('project-select');
+    fireEvent.change(projectSelect, { target: { value: '' } }); // Empty string triggers "create new project" mode
+
+    const newProjectInput =
+      await screen.findByPlaceholderText('New project name');
+    fireEvent.change(newProjectInput, {
+      target: { value: 'My Fresh Project' },
+    });
+
+    expect(newProjectInput).toHaveValue('My Fresh Project');
+  });
 });
diff --git a/production/docker-compose.yml b/production/docker-compose.yml
index 434216b5..5f0e6eb3 100644
--- a/production/docker-compose.yml
+++ b/production/docker-compose.yml
@@ -31,18 +31,63 @@ services:
     volumes:
       - ./backend/data:/app/data
 
+  # syncserver:
+  #   image: ghcr.io/gothenburgbitfactory/taskchampion-sync-server:latest
+  #   ports:
+  #     - "8080:8080"
+  #   networks:
+  #     - tasknetwork
+  #   healthcheck:
+  #     test: ["CMD", "curl", "-f", "http://localhost:8080/health"]
+  #     interval: 30s
+  #     timeout: 10s
+  #     retries: 3
+  #   volumes:
+  #     - ./syncserver/data:/data
+  #   environment:
+  #     - DATA_DIR=/data
+
+  mkdir:
+    image: caddy:2-alpine
+    command: |
+      /bin/sh -c "
+      mkdir -p /data/caddy/data /data/caddy/config /data/syncserver/taskchampion-sync-server"
+    volumes:
+      - type: volume
+        source: data
+        target: /data
+        read_only: false
+        volume:
+          nocopy: true
+    networks:
+      - tasknetwork
+
   syncserver:
-    image: ghcr.io/gothenburgbitfactory/taskchampion-sync-server:latest
-    ports:
-      - "8080:8080"
+    image: ghcr.io/gothenburgbitfactory/taskchampion-sync-server:0.7.1
+    restart: unless-stopped
     networks:
       - tasknetwork
-    healthcheck:
-      test: ["CMD", "curl", "-f", "http://localhost:8080/health"]
-      interval: 30s
-      timeout: 10s
-      retries: 3
+    ports:
+      - "8080:8080"
+    environment:
+      - "RUST_LOG=info"
+      - "DATA_DIR=/var/lib/taskchampion-sync-server/data"
+      - "LISTEN=0.0.0.0:8080"
+    volumes:
+      - type: volume
+        source: data
+        target: /var/lib/taskchampion-sync-server/data
+        read_only: false
+        volume:
+          nocopy: true
+          subpath: syncserver/taskchampion-sync-server
+    depends_on:
+      mkdir:
+        condition: service_completed_successfully
 
 networks:
   tasknetwork:
     driver: bridge
+
+volumes:
+  data: