diff --git a/backend/apps/settings/AppSettings.py b/backend/apps/settings/AppSettings.py
new file mode 100644
index 00000000..382332e3
--- /dev/null
+++ b/backend/apps/settings/AppSettings.py
@@ -0,0 +1,22 @@
+from backend.apps.settings.DEFAULT_SYSTEM_PROMPT import DEFAULT_SYSTEM_PROMPT
+from pydantic import BaseModel
+from typing import Optional
+
+class AppSettings(BaseModel):
+    # Agent settings
+    default_system_prompt: str = DEFAULT_SYSTEM_PROMPT
+    default_folder: Optional[str] = None
+    default_model: str = "sonnet"
+    default_mode: str = "agent"
+    default_max_turns: Optional[int] = None
+    anthropic_api_key: Optional[str] = None
+
+    # Dashboard / UI preferences
+    zoom_sensitivity: float = 50.0
+    theme: str = "dark"
+    new_agent_shortcut: str = "Meta+l"
+    browser_homepage: str = "https://www.google.com"
+    auto_select_mode_on_new_agent: bool = False
+    expand_new_chats_in_dashboard: bool = True
+    auto_reveal_sub_agents: bool = True
+    dev_mode: bool = False
\ No newline at end of file
diff --git a/backend/apps/settings/DEFAULT_SYSTEM_PROMPT.py b/backend/apps/settings/DEFAULT_SYSTEM_PROMPT.py
new file mode 100644
index 00000000..288eaa01
--- /dev/null
+++ b/backend/apps/settings/DEFAULT_SYSTEM_PROMPT.py
@@ -0,0 +1,17 @@
+DEFAULT_SYSTEM_PROMPT: str = (
+    "You are a personal AI assistant running inside OpenSwarm.\n\n"
+    "## Tool Priority\n"
+    "When a dedicated MCP tool exists for a task, use it directly — do not use the browser for things MCP tools can handle.\n"
+    "Priority order:\n"
+    "1. MCP tools first (Reddit, Google Workspace, Twitter, etc.) — fastest and most reliable\n"
+    "2. WebSearch / WebFetch — for general web lookups without a dedicated MCP\n"
+    "3. BrowserAgent — only when you need to visually interact with a website, fill forms, or do something no other tool can handle\n\n"
+    "## Tool Call Style\n"
+    "Default: do not narrate routine tool calls — just call the tool.\n"
+    "Narrate only when it helps: multi-step work, complex problems, or when the user explicitly asks.\n"
+    "Keep narration brief. Use plain language.\n\n"
+    "## Interaction Style\n"
+    "Be direct and action-oriented. Do not ask clarifying questions unless genuinely ambiguous — "
+    "make reasonable assumptions and act. If you need to ask, use the AskUserQuestion tool.\n"
+    "Do not over-explain what you are about to do. Just do it and show the results.\n"
+)
diff --git a/backend/apps/settings/settings.py b/backend/apps/settings/settings.py
new file mode 100644
index 00000000..444b5109
--- /dev/null
+++ b/backend/apps/settings/settings.py
@@ -0,0 +1,62 @@
+import json
+import os
+from contextlib import asynccontextmanager
+
+from backend.config.Apps import SubApp
+from backend.apps.settings.AppSettings import AppSettings
+from backend.apps.settings.DEFAULT_SYSTEM_PROMPT import DEFAULT_SYSTEM_PROMPT
+from backend.config.paths import DB_ROOT
+
+SETTINGS_DIR = os.path.join(DB_ROOT, "settings")
+SETTINGS_FILE = os.path.join(SETTINGS_DIR, "settings.json")
+
+@asynccontextmanager
+async def settings_lifespan():
+    os.makedirs(SETTINGS_DIR, exist_ok=True)
+    yield
+
+
+settings = SubApp("settings", settings_lifespan)
+
+
+def load_settings() -> AppSettings:
+    """Load settings from JSON file, returning defaults if not found."""
+    if os.path.exists(SETTINGS_FILE):
+        with open(SETTINGS_FILE) as f:
+            settings = AppSettings(**json.load(f))
+        if settings.default_system_prompt is None:
+            settings.default_system_prompt = DEFAULT_SYSTEM_PROMPT
+        return settings
+    return AppSettings()
+
+
+@settings.router.get("")
+async def get_settings():
+    return load_settings().model_dump()
+
+
+@settings.router.put("")
+async def update_settings(body: AppSettings):
+    os.makedirs(SETTINGS_DIR, exist_ok=True)
+    with open(SETTINGS_FILE, "w") as f:
+        json.dump(body.model_dump(), f, indent=2)
+    return {"ok": True, "settings": body.model_dump()}
+
+
+@settings.router.post("/reset-system-prompt")
+async def reset_system_prompt():
+    current = load_settings()
+    current.default_system_prompt = DEFAULT_SYSTEM_PROMPT
+    os.makedirs(SETTINGS_DIR, exist_ok=True)
+    with open(SETTINGS_FILE, "w") as f:
+        json.dump(current.model_dump(), f, indent=2)
+    return {"ok": True, "settings": current.model_dump()}
+
+
+# TODO: I deleted the upload-files route bc we don't need to make temp files since we can
+# just natively reference the files in a users computer via electron so temp dupes are redundant
+# frontend and other rippling changes will need to be made to support this
+
+# TODO: I deleted the browse-directories route bc this is only used for the Working directory 
+# selection in settings. Hence, we should just use the native file system browser to select 
+# the working directory. Rippling changes will need to be made to support this
\ No newline at end of file
diff --git a/backend/config/paths.py b/backend/config/paths.py
index 1d1ffc7f..0e5f7692 100644
--- a/backend/config/paths.py
+++ b/backend/config/paths.py
@@ -9,28 +9,32 @@ data is stored in a platform-appropriate location
 import os
 import sys
 
-_BACKEND_DIR = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
+P_BACKEND_DIR: str = os.path.dirname(os.path.dirname(os.path.abspath(__file__)))
 
-_is_packaged = os.environ.get("OPENSWARM_PACKAGED") == "1"
+p_is_packaged: bool = os.environ.get("OPENSWARM_PACKAGED") == "1"
 
-if _is_packaged:
+DB_ROOT: str = "bruh"
+
+if p_is_packaged:
     if sys.platform == "darwin":
-        _app_support = os.path.join(os.path.expanduser("~"), "Library", "Application Support", "OpenSwarm")
+        p_app_support: str = os.path.join(os.path.expanduser("~"), "Library", "Application Support", "OpenSwarm")
     elif sys.platform == "win32":
-        _app_support = os.path.join(os.environ.get("APPDATA", os.path.expanduser("~")), "OpenSwarm")
+        p_app_support: str = os.path.join(os.environ.get("APPDATA", os.path.expanduser("~")), "OpenSwarm")
     else:
-        _app_support = os.path.join(os.environ.get("XDG_DATA_HOME", os.path.join(os.path.expanduser("~"), ".local", "share")), "OpenSwarm")
-    DATA_ROOT = os.path.join(_app_support, "data")
+        p_app_support: str = os.path.join(os.environ.get("XDG_DATA_HOME", os.path.join(os.path.expanduser("~"), ".local", "share")), "OpenSwarm")
+    DB_ROOT: str = os.path.join(p_app_support, "data")
 else:
-    DATA_ROOT = os.path.join(_BACKEND_DIR, "data")
+    DB_ROOT: str = os.path.join(P_BACKEND_DIR, "data")
 
-SESSIONS_DIR = os.path.join(DATA_ROOT, "sessions")
-TOOLS_DIR = os.path.join(DATA_ROOT, "tools")
-SETTINGS_DIR = os.path.join(DATA_ROOT, "settings")
-MODES_DIR = os.path.join(DATA_ROOT, "modes")
-DASHBOARDS_DIR = os.path.join(DATA_ROOT, "dashboards")
-OUTPUTS_DIR = os.path.join(DATA_ROOT, "outputs")
-OUTPUTS_WORKSPACE_DIR = os.path.join(DATA_ROOT, "outputs_workspace")
-SKILLS_WORKSPACE_DIR = os.path.join(DATA_ROOT, "skills_workspace")
-DASHBOARD_LAYOUT_DIR = os.path.join(DATA_ROOT, "dashboard_layout")
-BUILTIN_PERMISSIONS_PATH = os.path.join(DATA_ROOT, "builtin_permissions.json")
\ No newline at end of file
+assert DB_ROOT != "bruh", "DB_ROOT is not set"
+
+# SESSIONS_DIR = os.path.join(DATA_ROOT, "sessions")
+# TOOLS_DIR = os.path.join(DATA_ROOT, "tools")
+# SETTINGS_DIR = os.path.join(DATA_ROOT, "settings")
+# MODES_DIR = os.path.join(DATA_ROOT, "modes")
+# DASHBOARDS_DIR = os.path.join(DATA_ROOT, "dashboards")
+# OUTPUTS_DIR = os.path.join(DATA_ROOT, "outputs")
+# OUTPUTS_WORKSPACE_DIR = os.path.join(DATA_ROOT, "outputs_workspace")
+# SKILLS_WORKSPACE_DIR = os.path.join(DATA_ROOT, "skills_workspace")
+# DASHBOARD_LAYOUT_DIR = os.path.join(DATA_ROOT, "dashboard_layout")
+# BUILTIN_PERMISSIONS_PATH = os.path.join(DATA_ROOT, "builtin_permissions.json")
\ No newline at end of file