diff --git a/app.js b/app.js
index 28e9085a..d1069899 100644
--- a/app.js
+++ b/app.js
@@ -3288,6 +3288,15 @@ init().then(() => {
     { id: 'mem_hermes_chat', content: 'First conversation through the Hermes gateway', category: 'social', strength: 0.7, connections: [] },
     { id: 'mem_mnemosyne_start', content: 'Project Mnemosyne began — the living archive awakens', category: 'projects', strength: 0.9, connections: ['mem_nexus_birth', 'mem_spatial_schema'] },
     { id: 'mem_spatial_schema', content: 'Spatial Memory Schema defined — memories gain permanent homes', category: 'engineering', strength: 0.8, connections: ['mem_mnemosyne_start'] },
+    // MemPalace category zone demos — issue #1168
+    { id: 'mem_pref_dark_mode', content: 'User prefers dark mode and monospace fonts', category: 'user_pref', strength: 0.9, connections: [] },
+    { id: 'mem_pref_verbose_logs', content: 'User prefers verbose logging during debug sessions', category: 'user_pref', strength: 0.7, connections: [] },
+    { id: 'mem_proj_nexus_goal', content: 'The Nexus goal: local-first 3D training ground for Timmy', category: 'project', strength: 0.95, connections: ['mem_proj_mnemosyne'] },
+    { id: 'mem_proj_mnemosyne', content: 'Project Mnemosyne: holographic living archive of facts', category: 'project', strength: 0.85, connections: ['mem_proj_nexus_goal'] },
+    { id: 'mem_tool_three_js', content: 'Three.js — 3D rendering library used for the Nexus world', category: 'tool', strength: 0.8, connections: [] },
+    { id: 'mem_tool_gitea', content: 'Gitea API at forge.alexanderwhitestone.com for issue tracking', category: 'tool', strength: 0.75, connections: [] },
+    { id: 'mem_gen_websocket', content: 'WebSocket bridge (server.py) connects Timmy cognition to the browser', category: 'general', strength: 0.7, connections: [] },
+    { id: 'mem_gen_hermes', content: 'Hermes harness: telemetry and durable truth pipeline', category: 'general', strength: 0.65, connections: [] },
   ];
   demoMemories.forEach(m => SpatialMemory.placeMemory(m));
 
diff --git a/nexus/components/spatial-memory.js b/nexus/components/spatial-memory.js
index b3a9bb73..ab3fdd87 100644
--- a/nexus/components/spatial-memory.js
+++ b/nexus/components/spatial-memory.js
@@ -8,12 +8,20 @@
 // holographic archive.
 //
 // World layout (hex cylinder, radius 25):
-//   North (z-)  → Documents & Knowledge
-//   South (z+)  → Projects & Tasks
-//   East  (x+)  → Code & Engineering
-//   West  (x-)  → Conversations & Social
-//   Center      → Active Working Memory
-//   Below (y-)  → Archive (cold storage)
+//
+//   Inner ring — original Mnemosyne taxonomy (radius 15):
+//     North (z-)  → Documents & Knowledge
+//     South (z+)  → Projects & Tasks
+//     East  (x+)  → Code & Engineering
+//     West  (x-)  → Conversations & Social
+//     Center      → Active Working Memory
+//     Below (y-)  → Archive (cold storage)
+//
+//   Outer ring — MemPalace category zones (radius 20, issue #1168):
+//     North (z-)  → User Preferences   [golden]
+//     East  (x+)  → Project facts      [blue]
+//     South (z+)  → Tool knowledge     [green]
+//     West  (x-)  → General facts      [gray]
 //
 // Usage from app.js:
 //   SpatialMemory.init(scene);
@@ -73,6 +81,44 @@ const SpatialMemory = (() => {
       color: 0x334455,
       glyph: '\uD83D\uDDC4',
       description: 'Cold storage — rarely accessed, aged-out memories'
+    },
+
+    // ── MemPalace category zones — outer ring, issue #1168 ────────────
+    user_pref: {
+      label: 'User Preferences',
+      center: [0, 0, -20],
+      radius: 10,
+      color: 0xffd700,
+      glyph: '\u2605',
+      description: 'Personal preferences, habits, user-specific settings',
+      labelY: 5
+    },
+    project: {
+      label: 'Project Facts',
+      center: [20, 0, 0],
+      radius: 10,
+      color: 0x4488ff,
+      glyph: '\uD83D\uDCC1',
+      description: 'Project-specific knowledge, goals, context',
+      labelY: 5
+    },
+    tool: {
+      label: 'Tool Knowledge',
+      center: [0, 0, 20],
+      radius: 10,
+      color: 0x44cc66,
+      glyph: '\uD83D\uDD27',
+      description: 'Tools, commands, APIs, and how to use them',
+      labelY: 5
+    },
+    general: {
+      label: 'General Facts',
+      center: [-20, 0, 0],
+      radius: 10,
+      color: 0x8899aa,
+      glyph: '\uD83D\uDCDD',
+      description: 'Miscellaneous facts not fitting other categories',
+      labelY: 5
     }
   };
 
@@ -99,6 +145,7 @@ const SpatialMemory = (() => {
     const cx = region.center[0];
     const cy = region.center[1] + 0.06;
     const cz = region.center[2];
+    const labelY = region.labelY || 3;
 
     const ringGeo = new THREE.RingGeometry(region.radius - 0.5, region.radius, 6);
     const ringMat = new THREE.MeshBasicMaterial({
@@ -126,6 +173,22 @@ const SpatialMemory = (() => {
     _scene.add(ring);
     _scene.add(disc);
 
+    // Ground glow — brighter disc for MemPalace zones (labelY > 3 signals outer ring)
+    let glowDisc = null;
+    if (labelY > 3) {
+      const glowGeo = new THREE.CircleGeometry(region.radius, 32);
+      const glowMat = new THREE.MeshBasicMaterial({
+        color: region.color,
+        transparent: true,
+        opacity: 0.06,
+        side: THREE.DoubleSide
+      });
+      glowDisc = new THREE.Mesh(glowGeo, glowMat);
+      glowDisc.rotation.x = -Math.PI / 2;
+      glowDisc.position.set(cx, cy - 0.02, cz);
+      _scene.add(glowDisc);
+    }
+
     // Floating label
     const canvas = document.createElement('canvas');
     canvas.width = 256;
@@ -139,11 +202,11 @@ const SpatialMemory = (() => {
     const texture = new THREE.CanvasTexture(canvas);
     const spriteMat = new THREE.SpriteMaterial({ map: texture, transparent: true, opacity: 0.6 });
     const sprite = new THREE.Sprite(spriteMat);
-    sprite.position.set(cx, 3, cz);
+    sprite.position.set(cx, labelY, cz);
     sprite.scale.set(4, 1, 1);
     _scene.add(sprite);
 
-    return { ring, disc, sprite };
+    return { ring, disc, glowDisc, sprite };
   }
 
   // ─── PLACE A MEMORY ──────────────────────────────────
@@ -283,6 +346,9 @@ const SpatialMemory = (() => {
       if (marker.ring && marker.ring.material) {
         marker.ring.material.opacity = 0.1 + Math.sin(now * 0.001) * 0.05;
       }
+      if (marker.glowDisc && marker.glowDisc.material) {
+        marker.glowDisc.material.opacity = 0.04 + Math.sin(now * 0.0008) * 0.02;
+      }
     });
   }