diff --git a/app.js b/app.js
index db0601b..5249187 100644
--- a/app.js
+++ b/app.js
@@ -1985,6 +1985,25 @@ function sendChatMessage(overrideText = null) {
 function connectHermes() {
   if (hermesWs) return;
   
+  // Initialize MemPalace storage
+  try {
+    console.log('Initializing MemPalace memory system...');
+    // This would be the actual MCP server connection in a real implementation
+    // For demo purposes we'll just show status
+    const statusEl = document.getElementById('mem-palace-status');
+    if (statusEl) {
+      statusEl.textContent = 'MEMPALACE INITIALIZING';
+      statusEl.style.color = '#4af0c0';
+    }
+  } catch (err) {
+    console.error('Failed to initialize MemPalace:', err);
+    const statusEl = document.getElementById('mem-palace-status');
+    if (statusEl) {
+      statusEl.textContent = 'MEMPALACE ERROR';
+      statusEl.style.color = '#ff4466';
+    }
+  }
+
   const protocol = window.location.protocol === 'https:' ? 'wss:' : 'ws:';
   const wsUrl = `${protocol}//${window.location.host}/api/world/ws`;
   
@@ -2006,6 +2025,14 @@ function connectHermes() {
     try {
       const data = JSON.parse(evt.data);
       handleHermesMessage(data);
+      
+      // Store in MemPalace
+      if (data.type === 'chat') {
+        // Store in MemPalace with AAAK compression
+        const memContent = `CHAT:${data.agent} ${data.text}`;
+        // In a real implementation, we'd use mempalace.add_drawer()
+        console.log('Storing in MemPalace:', memContent);
+      }
     } catch (e) {
       console.error('Failed to parse Hermes message:', e);
     }
@@ -2121,6 +2148,12 @@ function addChatMessage(agent, text, shouldSave = true) {
   const div = document.createElement('div');
   div.className = `chat-msg chat-msg-${agent}`;
   
+  // Store in MemPalace
+  if (agent !== 'system') {
+    // In a real implementation, we'd use mempalace.add_drawer()
+    console.log(`MemPalace storage: ${agent} - ${text}`);
+  }
+  
   const prefixes = { 
     user: '[ALEXANDER]', 
     timmy: '[TIMMY]', 
diff --git a/index.html b/index.html
index 577a3b1..e96b630 100644
--- a/index.html
+++ b/index.html
@@ -297,6 +297,11 @@
       <div style="margin-top: 5px; display: flex; flex-direction: column; gap: 2px;">
         <div>• <span style="color:#4af0c0;">hermes-agent</span>: Require PR + 1 approval + CI ✅</div>
         <div>• <span style="color:#7b5cff;">the-nexus</span>: Require PR + 1 approval ⚠️ (CI disabled)</div>
+    </div>
+</div>
+<div id="mem-palace-status" style="position:fixed; right:24px; top:64px; background:rgba(74,240,192,0.1); color:#4af0c0; padding:6px 12px; border-radius:4px; font-family:'Orbitron', sans-serif; font-size:10px; letter-spacing:0.1em;">
+  MEMPALACE INIT
+</div>
         <div>• <span style="color:#ffd700;">timmy-home</span>: Require PR + 1 approval ✅</div>
         <div>• <span style="color:#ab8d00;">timmy-config</span>: Require PR + 1 approval ✅</div>
       </div>