diff --git a/app.js b/app.js
index 90ec33c0..ac5e752a 100644
--- a/app.js
+++ b/app.js
@@ -9,6 +9,7 @@ import { MemoryBirth } from './nexus/components/memory-birth.js';
 import { MemoryOptimizer } from './nexus/components/memory-optimizer.js';
 import { MemoryInspect } from './nexus/components/memory-inspect.js';
 import { MemoryPulse } from './nexus/components/memory-pulse.js';
+import { ReasoningTrace } from './nexus/components/reasoning-trace.js';
 
 // ═══════════════════════════════════════════
 // NEXUS v1.1 — Portal System Update
@@ -758,6 +759,7 @@ async function init() {
   SpatialAudio.bindSpatialMemory(SpatialMemory);
   MemoryInspect.init({ onNavigate: _navigateToMemory });
   MemoryPulse.init(SpatialMemory);
+  ReasoningTrace.init();
   updateLoad(90);
 
   loadSession();
diff --git a/index.html b/index.html
index 60999bad..0f487554 100644
--- a/index.html
+++ b/index.html
@@ -101,6 +101,19 @@
       <div class="panel-header">ADAPTIVE CALIBRATOR</div>
       <div id="calibrator-log-content" class="panel-content"></div>
     </div>
+    <div class="hud-panel" id="reasoning-trace">
+      <div class="trace-header-container">
+        <div class="panel-header"><span class="trace-icon">🧠</span> REASONING TRACE</div>
+        <div class="trace-controls">
+          <button class="trace-btn" id="trace-clear" title="Clear trace">🗑️</button>
+          <button class="trace-btn" id="trace-toggle" title="Toggle visibility">👁️</button>
+          <button class="trace-btn" id="trace-export" title="Export trace">📤</button>
+        </div>
+      </div>
+      <div class="trace-task" id="trace-task">No active task</div>
+      <div class="trace-counter" id="trace-counter">0 steps</div>
+      <div id="reasoning-trace-content" class="panel-content trace-content"></div>
+    </div>
   </div>
 
   <!-- Evennia Room Snapshot Panel -->
diff --git a/nexus/components/reasoning-trace.js b/nexus/components/reasoning-trace.js
new file mode 100644
index 00000000..9a6881d3
--- /dev/null
+++ b/nexus/components/reasoning-trace.js
@@ -0,0 +1,451 @@
+// ═══════════════════════════════════════════════════
+// REASONING TRACE HUD COMPONENT
+// ═══════════════════════════════════════════════════
+//
+// Displays a real-time trace of the agent's reasoning
+// steps during complex task execution. Shows the chain
+// of thought, decision points, and confidence levels.
+//
+// Usage:
+//   ReasoningTrace.init();
+//   ReasoningTrace.addStep(step);
+//   ReasoningTrace.clear();
+//   ReasoningTrace.toggle();
+// ═══════════════════════════════════════════════════
+
+const ReasoningTrace = (() => {
+  // ── State ─────────────────────────────────────────
+  let _container = null;
+  let _content = null;
+  let _header = null;
+  let _steps = [];
+  let _maxSteps = 20;
+  let _isVisible = true;
+  let _currentTask = null;
+  let _stepCounter = 0;
+  
+  // ── Config ────────────────────────────────────────
+  const STEP_TYPES = {
+    THINK: { icon: '💭', color: '#4af0c0', label: 'THINK' },
+    DECIDE: { icon: '⚖️', color: '#ffd700', label: 'DECIDE' },
+    RECALL: { icon: '🔍', color: '#7b5cff', label: 'RECALL' },
+    PLAN: { icon: '📋', color: '#ff8c42', label: 'PLAN' },
+    EXECUTE: { icon: '⚡', color: '#ff4466', label: 'EXECUTE' },
+    VERIFY: { icon: '✅', color: '#4af0c0', label: 'VERIFY' },
+    DOUBT: { icon: '❓', color: '#ff8c42', label: 'DOUBT' },
+    MEMORY: { icon: '💾', color: '#7b5cff', label: 'MEMORY' }
+  };
+  
+  // ── Helpers ───────────────────────────────────────
+  
+  function _escapeHtml(s) {
+    return String(s)
+      .replace(/&/g, '&amp;')
+      .replace(/</g, '&lt;')
+      .replace(/>/g, '&gt;')
+      .replace(/"/g, '&quot;')
+      .replace(/'/g, '&#39;');
+  }
+  
+  function _formatTimestamp(timestamp) {
+    const date = new Date(timestamp);
+    return date.toLocaleTimeString('en-US', { 
+      hour12: false, 
+      hour: '2-digit', 
+      minute: '2-digit', 
+      second: '2-digit' 
+    });
+  }
+  
+  function _getConfidenceBar(confidence) {
+    if (confidence === undefined || confidence === null) return '';
+    const percent = Math.max(0, Math.min(100, Math.round(confidence * 100)));
+    const bars = Math.round(percent / 10);
+    const filled = '█'.repeat(bars);
+    const empty = '░'.repeat(10 - bars);
+    return `<span class="confidence-bar" title="${percent}% confidence">${filled}${empty}</span>`;
+  }
+  
+  // ── DOM Setup ─────────────────────────────────────
+  
+  function _createDOM() {
+    // Create container if it doesn't exist
+    if (_container) return;
+    
+    _container = document.createElement('div');
+    _container.id = 'reasoning-trace';
+    _container.className = 'hud-panel reasoning-trace';
+    
+    _header = document.createElement('div');
+    _header.className = 'panel-header';
+    _header.innerHTML = `<span class="trace-icon">🧠</span> REASONING TRACE`;
+    
+    // Task indicator
+    const taskIndicator = document.createElement('div');
+    taskIndicator.className = 'trace-task';
+    taskIndicator.id = 'trace-task';
+    taskIndicator.textContent = 'No active task';
+    
+    // Step counter
+    const stepCounter = document.createElement('div');
+    stepCounter.className = 'trace-counter';
+    stepCounter.id = 'trace-counter';
+    stepCounter.textContent = '0 steps';
+    
+    // Controls
+    const controls = document.createElement('div');
+    controls.className = 'trace-controls';
+    controls.innerHTML = `
+      <button class="trace-btn" id="trace-clear" title="Clear trace">🗑️</button>
+      <button class="trace-btn" id="trace-toggle" title="Toggle visibility">👁️</button>
+      <button class="trace-btn" id="trace-export" title="Export trace">📤</button>
+    `;
+    
+    // Header container
+    const headerContainer = document.createElement('div');
+    headerContainer.className = 'trace-header-container';
+    headerContainer.appendChild(_header);
+    headerContainer.appendChild(controls);
+    
+    // Content area
+    _content = document.createElement('div');
+    _content.className = 'panel-content trace-content';
+    _content.id = 'reasoning-trace-content';
+    
+    // Assemble
+    _container.appendChild(headerContainer);
+    _container.appendChild(taskIndicator);
+    _container.appendChild(stepCounter);
+    _container.appendChild(_content);
+    
+    // Add to HUD
+    const hud = document.getElementById('hud');
+    if (hud) {
+      const gofaiHud = hud.querySelector('.gofai-hud');
+      if (gofaiHud) {
+        gofaiHud.appendChild(_container);
+      } else {
+        hud.appendChild(_container);
+      }
+    }
+    
+    // Add event listeners
+    document.getElementById('trace-clear')?.addEventListener('click', clear);
+    document.getElementById('trace-toggle')?.addEventListener('click', toggle);
+    document.getElementById('trace-export')?.addEventListener('click', exportTrace);
+  }
+  
+  // ── Rendering ─────────────────────────────────────
+  
+  function _renderStep(step, index) {
+    const typeConfig = STEP_TYPES[step.type] || STEP_TYPES.THINK;
+    const timestamp = _formatTimestamp(step.timestamp);
+    const confidence = _getConfidenceBar(step.confidence);
+    
+    const stepEl = document.createElement('div');
+    stepEl.className = `trace-step trace-step-${step.type.toLowerCase()}`;
+    stepEl.dataset.stepId = step.id;
+    
+    // Step header
+    const header = document.createElement('div');
+    header.className = 'trace-step-header';
+    header.innerHTML = `
+      <span class="step-icon">${typeConfig.icon}</span>
+      <span class="step-type" style="color: ${typeConfig.color}">${typeConfig.label}</span>
+      <span class="step-time">${timestamp}</span>
+      ${confidence}
+    `;
+    
+    // Step content
+    const content = document.createElement('div');
+    content.className = 'trace-step-content';
+    
+    if (step.thought) {
+      const thought = document.createElement('div');
+      thought.className = 'step-thought';
+      thought.textContent = step.thought;
+      content.appendChild(thought);
+    }
+    
+    if (step.reasoning) {
+      const reasoning = document.createElement('div');
+      reasoning.className = 'step-reasoning';
+      reasoning.textContent = step.reasoning;
+      content.appendChild(reasoning);
+    }
+    
+    if (step.decision) {
+      const decision = document.createElement('div');
+      decision.className = 'step-decision';
+      decision.innerHTML = `<strong>Decision:</strong> ${_escapeHtml(step.decision)}`;
+      content.appendChild(decision);
+    }
+    
+    if (step.alternatives && step.alternatives.length > 0) {
+      const alternatives = document.createElement('div');
+      alternatives.className = 'step-alternatives';
+      alternatives.innerHTML = `<strong>Alternatives:</strong> ${step.alternatives.map(a => _escapeHtml(a)).join(', ')}`;
+      content.appendChild(alternatives);
+    }
+    
+    if (step.source) {
+      const source = document.createElement('div');
+      source.className = 'step-source';
+      source.innerHTML = `<strong>Source:</strong> ${_escapeHtml(step.source)}`;
+      content.appendChild(source);
+    }
+    
+    stepEl.appendChild(header);
+    stepEl.appendChild(content);
+    
+    return stepEl;
+  }
+  
+  function _render() {
+    if (!_content) return;
+    
+    // Clear content
+    _content.innerHTML = '';
+    
+    // Update task indicator
+    const taskEl = document.getElementById('trace-task');
+    if (taskEl) {
+      taskEl.textContent = _currentTask || 'No active task';
+      taskEl.className = _currentTask ? 'trace-task active' : 'trace-task';
+    }
+    
+    // Update step counter
+    const counterEl = document.getElementById('trace-counter');
+    if (counterEl) {
+      counterEl.textContent = `${_steps.length} step${_steps.length !== 1 ? 's' : ''}`;
+    }
+    
+    // Render steps (newest first)
+    const sortedSteps = [..._steps].sort((a, b) => b.timestamp - a.timestamp);
+    
+    for (let i = 0; i < sortedSteps.length; i++) {
+      const stepEl = _renderStep(sortedSteps[i], i);
+      _content.appendChild(stepEl);
+      
+      // Add separator between steps
+      if (i < sortedSteps.length - 1) {
+        const separator = document.createElement('div');
+        separator.className = 'trace-separator';
+        _content.appendChild(separator);
+      }
+    }
+    
+    // Show empty state if no steps
+    if (_steps.length === 0) {
+      const empty = document.createElement('div');
+      empty.className = 'trace-empty';
+      empty.innerHTML = `
+        <span class="empty-icon">💭</span>
+        <span class="empty-text">No reasoning steps yet</span>
+        <span class="empty-hint">Start a task to see the trace</span>
+      `;
+      _content.appendChild(empty);
+    }
+  }
+  
+  // ── Public API ────────────────────────────────────
+  
+  function init() {
+    _createDOM();
+    _render();
+    console.info('[ReasoningTrace] Initialized');
+  }
+  
+  /**
+   * Add a reasoning step to the trace.
+   * @param {Object} step - The reasoning step
+   * @param {string} step.type - Step type (THINK, DECIDE, RECALL, PLAN, EXECUTE, VERIFY, DOUBT, MEMORY)
+   * @param {string} step.thought - The main thought/content
+   * @param {string} [step.reasoning] - Detailed reasoning
+   * @param {string} [step.decision] - Decision made
+   * @param {string[]} [step.alternatives] - Alternative options considered
+   * @param {string} [step.source] - Source of information
+   * @param {number} [step.confidence] - Confidence level (0-1)
+   * @param {string} [step.taskId] - Associated task ID
+   */
+  function addStep(step) {
+    if (!step || !step.thought) return;
+    
+    // Generate unique ID
+    const id = `step-${++_stepCounter}-${Date.now()}`;
+    
+    // Create step object
+    const newStep = {
+      id,
+      timestamp: Date.now(),
+      type: step.type || 'THINK',
+      thought: step.thought,
+      reasoning: step.reasoning || null,
+      decision: step.decision || null,
+      alternatives: step.alternatives || null,
+      source: step.source || null,
+      confidence: step.confidence !== undefined ? Math.max(0, Math.min(1, step.confidence)) : null,
+      taskId: step.taskId || _currentTask
+    };
+    
+    // Add to steps array
+    _steps.unshift(newStep);
+    
+    // Limit number of steps
+    if (_steps.length > _maxSteps) {
+      _steps = _steps.slice(0, _maxSteps);
+    }
+    
+    // Update task if provided
+    if (step.taskId && step.taskId !== _currentTask) {
+      setTask(step.taskId);
+    }
+    
+    // Re-render
+    _render();
+    
+    // Log to console for debugging
+    console.debug(`[ReasoningTrace] ${newStep.type}: ${newStep.thought}`);
+    
+    return newStep.id;
+  }
+  
+  /**
+   * Set the current task being traced.
+   * @param {string} taskId - Task identifier
+   */
+  function setTask(taskId) {
+    _currentTask = taskId;
+    _render();
+    console.info(`[ReasoningTrace] Task set: ${taskId}`);
+  }
+  
+  /**
+   * Clear all steps from the trace.
+   */
+  function clear() {
+    _steps = [];
+    _stepCounter = 0;
+    _render();
+    console.info('[ReasoningTrace] Cleared');
+  }
+  
+  /**
+   * Toggle the visibility of the trace panel.
+   */
+  function toggle() {
+    _isVisible = !_isVisible;
+    if (_container) {
+      _container.style.display = _isVisible ? 'block' : 'none';
+    }
+    console.info(`[ReasoningTrace] Visibility: ${_isVisible ? 'shown' : 'hidden'}`);
+  }
+  
+  /**
+   * Export the trace as JSON.
+   * @returns {string} JSON string of the trace
+   */
+  function exportTrace() {
+    const exportData = {
+      task: _currentTask,
+      exportedAt: new Date().toISOString(),
+      steps: _steps.map(step => ({
+        type: step.type,
+        thought: step.thought,
+        reasoning: step.reasoning,
+        decision: step.decision,
+        alternatives: step.alternatives,
+        source: step.source,
+        confidence: step.confidence,
+        timestamp: new Date(step.timestamp).toISOString()
+      }))
+    };
+    
+    const json = JSON.stringify(exportData, null, 2);
+    
+    // Copy to clipboard
+    navigator.clipboard.writeText(json).then(() => {
+      console.info('[ReasoningTrace] Copied to clipboard');
+      // Show feedback
+      const btn = document.getElementById('trace-export');
+      if (btn) {
+        const original = btn.innerHTML;
+        btn.innerHTML = '✅';
+        setTimeout(() => { btn.innerHTML = original; }, 1000);
+      }
+    }).catch(err => {
+      console.error('[ReasoningTrace] Failed to copy:', err);
+    });
+    
+    return json;
+  }
+  
+  /**
+   * Get the current trace data.
+   * @returns {Object} Current trace state
+   */
+  function getTrace() {
+    return {
+      task: _currentTask,
+      steps: [..._steps],
+      stepCount: _steps.length,
+      isVisible: _isVisible
+    };
+  }
+  
+  /**
+   * Get steps filtered by type.
+   * @param {string} type - Step type to filter by
+   * @returns {Array} Filtered steps
+   */
+  function getStepsByType(type) {
+    return _steps.filter(step => step.type === type);
+  }
+  
+  /**
+   * Get steps for a specific task.
+   * @param {string} taskId - Task ID to filter by
+   * @returns {Array} Filtered steps
+   */
+  function getStepsByTask(taskId) {
+    return _steps.filter(step => step.taskId === taskId);
+  }
+  
+  /**
+   * Mark the current task as complete.
+   * @param {string} [result] - Optional result description
+   */
+  function completeTask(result) {
+    if (_currentTask) {
+      addStep({
+        type: 'VERIFY',
+        thought: `Task completed: ${result || 'Success'}`,
+        taskId: _currentTask
+      });
+      
+      // Clear current task after a delay
+      setTimeout(() => {
+        _currentTask = null;
+        _render();
+      }, 2000);
+    }
+  }
+  
+  // ── Return Public API ─────────────────────────────
+  
+  return {
+    init,
+    addStep,
+    setTask,
+    clear,
+    toggle,
+    exportTrace,
+    getTrace,
+    getStepsByType,
+    getStepsByTask,
+    completeTask,
+    STEP_TYPES
+  };
+})();
+
+export { ReasoningTrace };
\ No newline at end of file
diff --git a/style.css b/style.css
index ff8f34fb..961e1a9a 100644
--- a/style.css
+++ b/style.css
@@ -2685,3 +2685,252 @@ body.operator-mode #mode-label {
   color: #ffd700;
 }
 
+/* ═══ REASONING TRACE COMPONENT ═══ */
+
+.reasoning-trace {
+  width: 320px;
+  max-height: 400px;
+  display: flex;
+  flex-direction: column;
+}
+
+.trace-header-container {
+  display: flex;
+  justify-content: space-between;
+  align-items: center;
+  margin-bottom: 4px;
+}
+
+.trace-header-container .panel-header {
+  margin-bottom: 0;
+  border-bottom: none;
+  padding-bottom: 0;
+}
+
+.trace-icon {
+  margin-right: 4px;
+}
+
+.trace-controls {
+  display: flex;
+  gap: 4px;
+}
+
+.trace-btn {
+  background: rgba(74, 240, 192, 0.1);
+  border: 1px solid rgba(74, 240, 192, 0.2);
+  color: #4af0c0;
+  padding: 2px 6px;
+  font-size: 10px;
+  cursor: pointer;
+  border-radius: 2px;
+  transition: all 0.2s ease;
+}
+
+.trace-btn:hover {
+  background: rgba(74, 240, 192, 0.2);
+  border-color: #4af0c0;
+}
+
+.trace-task {
+  font-size: 9px;
+  color: #8899aa;
+  margin-bottom: 4px;
+  padding: 2px 6px;
+  background: rgba(0, 0, 0, 0.2);
+  border-radius: 2px;
+  font-family: 'JetBrains Mono', monospace;
+}
+
+.trace-task.active {
+  color: #4af0c0;
+  background: rgba(74, 240, 192, 0.1);
+  border-left: 2px solid #4af0c0;
+}
+
+.trace-counter {
+  font-size: 9px;
+  color: #667788;
+  margin-bottom: 6px;
+  font-family: 'JetBrains Mono', monospace;
+}
+
+.trace-content {
+  flex: 1;
+  overflow-y: auto;
+  max-height: 300px;
+}
+
+.trace-step {
+  margin-bottom: 8px;
+  padding: 6px;
+  background: rgba(0, 0, 0, 0.2);
+  border-radius: 3px;
+  border-left: 3px solid #4af0c0;
+  transition: all 0.2s ease;
+}
+
+.trace-step-think {
+  border-left-color: #4af0c0;
+}
+
+.trace-step-decide {
+  border-left-color: #ffd700;
+}
+
+.trace-step-recall {
+  border-left-color: #7b5cff;
+}
+
+.trace-step-plan {
+  border-left-color: #ff8c42;
+}
+
+.trace-step-execute {
+  border-left-color: #ff4466;
+}
+
+.trace-step-verify {
+  border-left-color: #4af0c0;
+}
+
+.trace-step-doubt {
+  border-left-color: #ff8c42;
+}
+
+.trace-step-memory {
+  border-left-color: #7b5cff;
+}
+
+.trace-step-header {
+  display: flex;
+  align-items: center;
+  gap: 6px;
+  margin-bottom: 4px;
+  font-size: 10px;
+}
+
+.step-icon {
+  font-size: 12px;
+}
+
+.step-type {
+  font-weight: 700;
+  letter-spacing: 0.5px;
+  font-family: 'JetBrains Mono', monospace;
+}
+
+.step-time {
+  color: #667788;
+  font-size: 9px;
+  margin-left: auto;
+  font-family: 'JetBrains Mono', monospace;
+}
+
+.confidence-bar {
+  font-family: 'JetBrains Mono', monospace;
+  font-size: 9px;
+  color: #4af0c0;
+  letter-spacing: -1px;
+  margin-left: 4px;
+}
+
+.trace-step-content {
+  font-size: 11px;
+  line-height: 1.4;
+  color: #d9f7ff;
+}
+
+.step-thought {
+  margin-bottom: 4px;
+  font-style: italic;
+  color: #e0f0ff;
+}
+
+.step-reasoning {
+  margin-bottom: 4px;
+  color: #aabbcc;
+  font-size: 10px;
+  padding-left: 8px;
+  border-left: 1px solid rgba(74, 240, 192, 0.2);
+}
+
+.step-decision {
+  margin-bottom: 4px;
+  color: #ffd700;
+  font-size: 10px;
+}
+
+.step-alternatives {
+  margin-bottom: 4px;
+  color: #8899aa;
+  font-size: 10px;
+}
+
+.step-source {
+  margin-bottom: 4px;
+  color: #7b5cff;
+  font-size: 10px;
+}
+
+.trace-separator {
+  height: 1px;
+  background: linear-gradient(90deg, transparent, rgba(74, 240, 192, 0.2), transparent);
+  margin: 6px 0;
+}
+
+.trace-empty {
+  display: flex;
+  flex-direction: column;
+  align-items: center;
+  justify-content: center;
+  padding: 20px;
+  color: #667788;
+  text-align: center;
+}
+
+.empty-icon {
+  font-size: 24px;
+  margin-bottom: 8px;
+  opacity: 0.5;
+}
+
+.empty-text {
+  font-size: 11px;
+  margin-bottom: 4px;
+  font-family: 'JetBrains Mono', monospace;
+}
+
+.empty-hint {
+  font-size: 9px;
+  color: #445566;
+  font-family: 'JetBrains Mono', monospace;
+}
+
+/* Animation for new steps */
+@keyframes trace-step-in {
+  from {
+    opacity: 0;
+    transform: translateY(-10px);
+  }
+  to {
+    opacity: 1;
+    transform: translateY(0);
+  }
+}
+
+.trace-step {
+  animation: trace-step-in 0.3s ease-out;
+}
+
+/* Responsive adjustments */
+@media (max-width: 768px) {
+  .reasoning-trace {
+    width: 280px;
+  }
+  
+  .trace-content {
+    max-height: 200px;
+  }
+}
+