diff --git a/app/views/budget_categories/_budget_category.html.erb b/app/views/budget_categories/_budget_category.html.erb
index b867783a7..3ce90e6f4 100644
--- a/app/views/budget_categories/_budget_category.html.erb
+++ b/app/views/budget_categories/_budget_category.html.erb
@@ -1,44 +1,53 @@
 <%# locals: (budget_category:) %>
 
-<%= turbo_frame_tag dom_id(budget_category), class: "w-full block" do %>
-  <%= link_to budget_budget_category_path(budget_category.budget, budget_category), class: "group block w-full p-4 bg-container hover:bg-surface-inset transition-colors", data: { turbo_frame: "drawer" } do %>
+<%= turbo_frame_tag dom_id(budget_category), class: "flex-1 min-w-0 block" do %>
+  <%= link_to budget_budget_category_path(budget_category.budget, budget_category), class: "group block w-full px-4 py-2 bg-container", data: { turbo_frame: "drawer" } do %>
 
     <% if budget_category.initialized? %>
       <%# Category Header with Status Badge %>
-      <div class="flex flex-wrap items-center justify-between gap-2 mb-3">
-        <div class="flex items-center gap-2 min-w-0">
-          <div class="w-3 h-3 rounded-full flex-shrink-0" style="background-color: <%= budget_category.category.color %>"></div>
-          <h3 class="font-medium text-primary truncate"><%= budget_category.category.name %></h3>
+      <div class="flex items-center lg:justify-between gap-2 mb-3">
+        <div class="h-9 w-9 flex-shrink-0 group-hover:scale-105 transition-all duration-300 rounded-full flex justify-center items-center" 
+              style="
+                background-color: color-mix(in oklab, <%= budget_category.category.color %> 10%, transparent);
+                border-color: color-mix(in oklab, <%= budget_category.category.color %> 10%, transparent);
+                color: <%= budget_category.category.color %>;">
+          <% if budget_category.category.lucide_icon %>
+            <%= icon(budget_category.category.lucide_icon, color: "current") %>
+          <% else %>
+            <%= render DS::FilledIcon.new(
+              variant: :text,
+              hex_color: budget_category.category.color,
+              text: budget_category.category.name,
+              size: "md",
+              rounded: true
+            ) %>
+          <% end %>
         </div>
-
-        <div class="flex items-center gap-3 flex-shrink-0">
+        <h3 class="flex-1 min-w-0 font-medium text-primary truncate"><%= budget_category.category.name %></h3>
+        <div class="flex items-center gap-3 flex-shrink-0 ml-auto">
           <% if budget_category.over_budget? %>
-            <span class="inline-flex items-center gap-1 px-2 py-1 bg-danger/10 text-danger text-xs font-medium rounded-full whitespace-nowrap">
-              <%= icon("alert-circle", class: "w-3 h-3") %>
+            <span class="inline-flex items-center gap-1 px-2 py-1 bg-red-500/10 text-red-500 text-xs font-medium rounded-full whitespace-nowrap">
+              <%= icon("alert-circle", size: "sm", color: "red") %>
               <%= t("reports.budget_performance.status.over") %>
             </span>
           <% elsif budget_category.near_limit? %>
-            <span class="inline-flex items-center gap-1 px-2 py-1 bg-warning/10 text-warning text-xs font-medium rounded-full whitespace-nowrap">
-              <%= icon("alert-triangle", class: "w-3 h-3") %>
+            <span class="inline-flex items-center gap-1 px-2 py-1 bg-yellow-500/10 text-warning text-xs font-medium rounded-full whitespace-nowrap">
+              <%= icon("alert-triangle", size: "sm", color: "yellow") %>
               <%= t("reports.budget_performance.status.warning") %>
             </span>
           <% else %>
-            <span class="inline-flex items-center gap-1 px-2 py-1 bg-success/10 text-success text-xs font-medium rounded-full whitespace-nowrap">
-              <%= icon("check-circle", class: "w-3 h-3") %>
+            <span class="inline-flex items-center gap-1 px-2 py-1 bg-green-500/10 text-success text-xs font-medium rounded-full whitespace-nowrap">
+              <%= icon("check-circle", size: "sm", color: "green") %>
               <%= t("reports.budget_performance.status.good") %>
             </span>
           <% end %>
-
-          <span class="text-sm font-semibold text-primary whitespace-nowrap">
-            <%= budget_category.percent_of_budget_spent.round(0) %>%
-          </span>
         </div>
       </div>
 
       <%# Progress Bar %>
       <div class="mb-3">
-        <div class="h-3 bg-container-inset rounded-full overflow-hidden">
-          <% bar_color = budget_category.over_budget? ? "bg-danger" : (budget_category.near_limit? ? "bg-warning" : "bg-success") %>
+        <div class="h-1.5 bg-container-inset rounded-full overflow-hidden">
+          <% bar_color = budget_category.over_budget? ? "bg-red-500" : (budget_category.near_limit? ? "bg-yellow-500" : "bg-green-500") %>
           <div class="h-full <%= bar_color %> rounded-full transition-all duration-500"
                style="width: <%= budget_category.bar_width_percent %>%"></div>
         </div>
@@ -46,27 +55,27 @@
 
       <%# Budget Details %>
       <div class="flex flex-wrap items-center gap-x-4 gap-y-2 text-sm">
-        <div class="whitespace-nowrap">
-          <span class="text-tertiary"><%= t("reports.budget_performance.spent") %>:</span>
+        <div class="whitespace-nowrap w-full sm:w-auto">
+          <span class="text-sm text-secondary"><%= t("reports.budget_performance.spent") %>:</span>
           <span class="font-medium text-primary">
             <%= format_money(budget_category.actual_spending_money) %>
           </span>
         </div>
-        <div class="whitespace-nowrap">
-          <span class="text-tertiary"><%= t("reports.budget_performance.budgeted") %>:</span>
-          <span class="font-medium text-secondary">
+        <div class="whitespace-nowrap w-full sm:w-auto">
+          <span class="text-sm text-secondary"><%= t("reports.budget_performance.budgeted") %>:</span>
+          <span class="font-medium text-primary">
             <%= format_money(budget_category.budgeted_spending_money) %>
           </span>
         </div>
-        <div class="whitespace-nowrap ml-auto">
+        <div class="whitespace-nowrap w-full sm:w-auto lg:ml-auto">
           <% if budget_category.available_to_spend >= 0 %>
-            <span class="text-tertiary"><%= t("reports.budget_performance.remaining") %>:</span>
-            <span class="font-medium text-success">
+            <span class="text-sm text-secondary"><%= t("reports.budget_performance.remaining") %>:</span>
+            <span class="font-medium <%= (budget_category.near_limit? ? "text-yellow-500" : "text-green-500") %>">
               <%= format_money(budget_category.available_to_spend_money) %>
             </span>
           <% else %>
-            <span class="text-tertiary"><%= t("reports.budget_performance.over_by") %>:</span>
-            <span class="font-medium text-danger">
+            <span class="text-sm text-secondary"><%= t("reports.budget_performance.over_by") %>:</span>
+            <span class="font-medium text-red-500">
               <%= format_money(budget_category.available_to_spend_money.abs) %>
             </span>
           <% end %>
@@ -76,8 +85,8 @@
       <%# Suggested Daily Limit (if remaining days in month) %>
       <% if budget_category.suggested_daily_spending.present? %>
         <% daily_info = budget_category.suggested_daily_spending %>
-        <div class="mt-3 pt-3 border-t border-tertiary">
-          <p class="text-xs text-tertiary break-words">
+        <div class="py-2">
+          <p class="text-xs text-subdued break-words">
             <%= t("reports.budget_performance.suggested_daily",
                   amount: daily_info[:amount].format,
                   days: daily_info[:days_remaining]) %>
diff --git a/app/views/budgets/_budget_categories.html.erb b/app/views/budgets/_budget_categories.html.erb
index 994373026..46824bac3 100644
--- a/app/views/budgets/_budget_categories.html.erb
+++ b/app/views/budgets/_budget_categories.html.erb
@@ -18,13 +18,13 @@
       <% category_groups = BudgetCategory::Group.for(budget.budget_categories) %>
 
       <% category_groups.each_with_index do |group, index| %>
-        <div>
+        <div class="py-2">
           <%= render "budget_categories/budget_category", budget_category: group.budget_category %>
 
           <div>
             <% group.budget_subcategories.each do |budget_subcategory| %>
-              <div class="w-full flex items-center -mt-4">
-                <div class="ml-8 flex items-center justify-center text-subdued">
+              <div class="w-full flex items-start">
+                <div class="ml-8 pt-4 flex items-center justify-center text-subdued">
                   <%= icon "corner-down-right" %>
                 </div>
 
@@ -36,8 +36,9 @@
 
         <%= render "shared/ruler" %>
       <% end %>
-
-      <%= render "budget_categories/budget_category", budget_category: budget.uncategorized_budget_category %>
+      <div class="py-2">
+        <%= render "budget_categories/budget_category", budget_category: budget.uncategorized_budget_category %>
+      </div>
     <% end %>
   </div>
 </div>
diff --git a/app/views/budgets/show.html.erb b/app/views/budgets/show.html.erb
index 57eee66ad..63e37448d 100644
--- a/app/views/budgets/show.html.erb
+++ b/app/views/budgets/show.html.erb
@@ -18,30 +18,30 @@
       </div>
 
       <%# Actuals Summary %>
-      <div class="bg-container rounded-xl shadow-border-xs">
-        <% if @budget.initialized? && @budget.available_to_allocate.positive? %>
-          <%= render DS::Tabs.new(active_tab: params[:tab].presence || "budgeted") do |tabs| %>
-            <% tabs.with_nav do |nav| %>
-              <% nav.with_btn(id: "budgeted", label: "Budgeted") %>
-              <% nav.with_btn(id: "actuals", label: "Actual") %>
-            <% end %>
-
-            <% tabs.with_panel(tab_id: "budgeted") do %>
-              <div class="bg-container rounded-xl shadow-border-xs">
-                <%= render "budgets/budgeted_summary", budget: @budget %>
-              </div>
-            <% end %>
-
-            <% tabs.with_panel(tab_id: "actuals") do %>
-              <div class="bg-container rounded-xl shadow-border-xs">
-                <%= render "budgets/actuals_summary", budget: @budget %>
-              </div>
-            <% end %>
+      <% if @budget.initialized? && @budget.available_to_allocate.positive? %>
+        <%= render DS::Tabs.new(active_tab: params[:tab].presence || "budgeted") do |tabs| %>
+          <% tabs.with_nav do |nav| %>
+            <% nav.with_btn(id: "budgeted", label: t("budgets.show.tabs.budgeted")) %>
+            <% nav.with_btn(id: "actuals", label: t("budgets.show.tabs.actual")) %>
+          <% end %>
+
+          <% tabs.with_panel(tab_id: "budgeted") do %>
+            <div class="bg-container rounded-xl shadow-border-xs">
+              <%= render "budgets/budgeted_summary", budget: @budget %>
+            </div>
+          <% end %>
+
+          <% tabs.with_panel(tab_id: "actuals") do %>
+            <div class="bg-container rounded-xl shadow-border-xs">
+              <%= render "budgets/actuals_summary", budget: @budget %>
+            </div>
           <% end %>
-        <% else %>
-          <%= render "budgets/actuals_summary", budget: @budget %>
         <% end %>
-      </div>
+      <% else %>
+        <div class="bg-container rounded-xl shadow-border-xs">
+          <%= render "budgets/actuals_summary", budget: @budget %>
+        </div>
+      <% end %>
     </div>
 
     <%# Bottom Section: Categories full width %>