diff --git a/apps/desktop/src/settings/DesktopClientSettings.test.ts b/apps/desktop/src/settings/DesktopClientSettings.test.ts
index a740fbafeee..8d76ea83a33 100644
--- a/apps/desktop/src/settings/DesktopClientSettings.test.ts
+++ b/apps/desktop/src/settings/DesktopClientSettings.test.ts
@@ -18,6 +18,7 @@ const clientSettings: ClientSettings = {
   confirmThreadDelete: false,
   dismissedProviderUpdateNotificationKeys: [],
   diffIgnoreWhitespace: true,
+  environmentIdentificationMode: "artwork",
   favorites: [],
   glassOpacity: 80,
   providerModelPreferences: {},
diff --git a/apps/web/src/components/AppSidebarLayout.tsx b/apps/web/src/components/AppSidebarLayout.tsx
index 90a45e8e25f..5c6acd62aea 100644
--- a/apps/web/src/components/AppSidebarLayout.tsx
+++ b/apps/web/src/components/AppSidebarLayout.tsx
@@ -14,7 +14,7 @@ import { getLocalStorageItem } from "../hooks/useLocalStorage";
 import { resolveShortcutCommand, shortcutLabelForCommand } from "../keybindings";
 import { cn, isMacPlatform } from "../lib/utils";
 import { primaryServerKeybindingsAtom } from "../state/server";
-import { useSidebarV2Enabled } from "../hooks/useSettings";
+import { useEnvironmentIdentificationMode, useSidebarV2Enabled } from "../hooks/useSettings";
 import ThreadSidebar from "./Sidebar";
 import ThreadSidebarV2 from "./SidebarV2";
 import { useSidebarStageBackdropVariant } from "./SidebarStageBackdrop";
@@ -62,7 +62,10 @@ function SidebarControl() {
   const keybindings = useAtomValue(primaryServerKeybindingsAtom);
   const { toggleSidebar } = useSidebar();
   const isSidebarVisible = useSidebarVisibility();
-  const stageBackdropVariant = useSidebarStageBackdropVariant();
+  const environmentIdentificationMode = useEnvironmentIdentificationMode();
+  const stageBackdropVariant = useSidebarStageBackdropVariant(
+    environmentIdentificationMode === "artwork",
+  );
   const shortcutLabel = shortcutLabelForCommand(keybindings, "sidebar.toggle");
 
   useEffect(() => {
diff --git a/apps/web/src/components/SidebarStageBackdrop.test.tsx b/apps/web/src/components/SidebarStageBackdrop.test.tsx
index 41aee21e327..114fd5f9241 100644
--- a/apps/web/src/components/SidebarStageBackdrop.test.tsx
+++ b/apps/web/src/components/SidebarStageBackdrop.test.tsx
@@ -1,9 +1,28 @@
 import { describe, expect, it } from "vite-plus/test";
 import { renderToStaticMarkup } from "react-dom/server";
 
-import { StageBackdropArt, StageBackdropButtonArt } from "./SidebarStageBackdrop";
+import {
+  resolveEnvironmentIdentificationPillLabel,
+  resolveSidebarStageBackdropVariant,
+  StageBackdropArt,
+  StageBackdropButtonArt,
+} from "./SidebarStageBackdrop";
 
 describe("SidebarStageBackdrop", () => {
+  it("resolves stage artwork only when enabled", () => {
+    expect(resolveSidebarStageBackdropVariant("Dev")).toBe("dev");
+    expect(resolveSidebarStageBackdropVariant("Nightly")).toBe("nightly");
+    expect(resolveSidebarStageBackdropVariant("Dev", false)).toBeNull();
+    expect(resolveSidebarStageBackdropVariant("Alpha")).toBeNull();
+  });
+
+  it("resolves supported environment pill labels", () => {
+    expect(resolveEnvironmentIdentificationPillLabel("Dev")).toBe("Dev");
+    expect(resolveEnvironmentIdentificationPillLabel("nightly")).toBe("Nightly");
+    expect(resolveEnvironmentIdentificationPillLabel("Latest")).toBeNull();
+    expect(resolveEnvironmentIdentificationPillLabel("Alpha")).toBeNull();
+  });
+
   it.each(["nightly", "dev"] as const)(
     "uses unique SVG definition ids when %s artwork is rendered more than once",
     (variant) => {
diff --git a/apps/web/src/components/SidebarStageBackdrop.tsx b/apps/web/src/components/SidebarStageBackdrop.tsx
index ba3de64de15..9fb448e940d 100644
--- a/apps/web/src/components/SidebarStageBackdrop.tsx
+++ b/apps/web/src/components/SidebarStageBackdrop.tsx
@@ -6,6 +6,7 @@ import { resolveServerBackedAppStageLabel } from "../branding.logic";
 import { primaryServerConfigAtom } from "../state/server";
 
 export type SidebarStageBackdropVariant = "nightly" | "dev";
+export type EnvironmentIdentificationPillLabel = "Dev" | "Nightly";
 
 // A wide viewBox keeps the 96-unit art height at a fixed scale while sidebar resizing reveals
 // more horizontal canvas instead of zooming the scene.
@@ -13,23 +14,36 @@ const STAGE_BACKDROP_VIEW_BOX = "0 0 8192 96";
 
 export function resolveSidebarStageBackdropVariant(
   stageLabel: string,
+  enabled = true,
 ): SidebarStageBackdropVariant | null {
+  if (!enabled) return null;
   const normalized = stageLabel.trim().toLowerCase();
   if (normalized === "nightly") return "nightly";
   if (normalized === "dev") return "dev";
   return null;
 }
 
-export function useSidebarStageBackdropVariant(): SidebarStageBackdropVariant | null {
+export function resolveEnvironmentIdentificationPillLabel(
+  stageLabel: string,
+): EnvironmentIdentificationPillLabel | null {
+  const normalized = stageLabel.trim().toLowerCase();
+  if (normalized === "dev") return "Dev";
+  if (normalized === "nightly") return "Nightly";
+  return null;
+}
+
+export function useEnvironmentStageLabel(): string {
   const primaryServerVersion =
     useAtomValue(primaryServerConfigAtom)?.environment.serverVersion ?? null;
 
-  return resolveSidebarStageBackdropVariant(
-    resolveServerBackedAppStageLabel({
-      primaryServerVersion,
-      fallbackStageLabel: APP_STAGE_LABEL,
-    }),
-  );
+  return resolveServerBackedAppStageLabel({
+    primaryServerVersion,
+    fallbackStageLabel: APP_STAGE_LABEL,
+  });
+}
+
+export function useSidebarStageBackdropVariant(enabled = true): SidebarStageBackdropVariant | null {
+  return resolveSidebarStageBackdropVariant(useEnvironmentStageLabel(), enabled);
 }
 
 /** Stage-channel header art; palettes mirror the per-channel app icons in `assets/`. */
diff --git a/apps/web/src/components/chat/ComposerPrimaryActions.tsx b/apps/web/src/components/chat/ComposerPrimaryActions.tsx
index 3e664e226b7..19c20e2abf2 100644
--- a/apps/web/src/components/chat/ComposerPrimaryActions.tsx
+++ b/apps/web/src/components/chat/ComposerPrimaryActions.tsx
@@ -1,5 +1,6 @@
 import { memo, type PointerEventHandler } from "react";
 import { ChevronDownIcon, ChevronLeftIcon } from "lucide-react";
+import { useEnvironmentIdentificationMode } from "~/hooks/useSettings";
 import { cn } from "~/lib/utils";
 import { StageBackdropButtonArt, useSidebarStageBackdropVariant } from "../SidebarStageBackdrop";
 import { Button } from "../ui/button";
@@ -72,7 +73,10 @@ export const ComposerPrimaryActions = memo(function ComposerPrimaryActions({
   const pointerFocusProps = preserveComposerFocusOnPointerDown
     ? { onPointerDown: preventPointerFocus }
     : undefined;
-  const stageBackdropVariant = useSidebarStageBackdropVariant();
+  const environmentIdentificationMode = useEnvironmentIdentificationMode();
+  const stageBackdropVariant = useSidebarStageBackdropVariant(
+    environmentIdentificationMode === "artwork",
+  );
 
   if (pendingAction) {
     return (
diff --git a/apps/web/src/components/settings/SettingsPanels.tsx b/apps/web/src/components/settings/SettingsPanels.tsx
index 310cdd5164c..fd70a0d6cf9 100644
--- a/apps/web/src/components/settings/SettingsPanels.tsx
+++ b/apps/web/src/components/settings/SettingsPanels.tsx
@@ -21,7 +21,9 @@ import {
   squashAtomCommandFailure,
 } from "@t3tools/client-runtime/state/runtime";
 import {
+  DEFAULT_ENVIRONMENT_IDENTIFICATION_MODE,
   DEFAULT_UNIFIED_SETTINGS,
+  type EnvironmentIdentificationMode,
   MAX_GLASS_OPACITY,
   MIN_GLASS_OPACITY,
 } from "@t3tools/contracts/settings";
@@ -40,6 +42,10 @@ import {
 } from "../../components/desktopUpdate.logic";
 import { ProviderModelPicker } from "../chat/ProviderModelPicker";
 import { TraitsPicker } from "../chat/TraitsPicker";
+import {
+  resolveEnvironmentIdentificationPillLabel,
+  useEnvironmentStageLabel,
+} from "../SidebarStageBackdrop";
 import { isElectron } from "../../env";
 import { buildHostedChannelSelectionUrl, type HostedAppChannel } from "../../hostedPairing";
 import { useTheme } from "../../hooks/useTheme";
@@ -114,6 +120,12 @@ const THEME_OPTIONS = [
   },
 ] as const;
 
+const ENVIRONMENT_IDENTIFICATION_LABELS: Record<EnvironmentIdentificationMode, string> = {
+  artwork: "Artwork",
+  pill: "Version pill",
+  none: "None",
+};
+
 const TIMESTAMP_FORMAT_LABELS = {
   locale: "System default",
   "12-hour": "12-hour",
@@ -401,6 +413,10 @@ export function useSettingsRestore(onRestored?: () => void) {
     () => [
       ...(theme !== "system" ? ["Theme"] : []),
       ...(settings.glassOpacity !== DEFAULT_UNIFIED_SETTINGS.glassOpacity ? ["Glass opacity"] : []),
+      ...(settings.environmentIdentificationMode !==
+      DEFAULT_UNIFIED_SETTINGS.environmentIdentificationMode
+        ? ["Environment identification"]
+        : []),
       ...(settings.timestampFormat !== DEFAULT_UNIFIED_SETTINGS.timestampFormat
         ? ["Time format"]
         : []),
@@ -456,6 +472,7 @@ export function useSettingsRestore(onRestored?: () => void) {
       settings.defaultThreadEnvMode,
       settings.newWorktreesStartFromOrigin,
       settings.diffIgnoreWhitespace,
+      settings.environmentIdentificationMode,
       settings.glassOpacity,
       settings.automaticGitFetchInterval,
       settings.enableAssistantStreaming,
@@ -483,6 +500,7 @@ export function useSettingsRestore(onRestored?: () => void) {
       timestampFormat: DEFAULT_UNIFIED_SETTINGS.timestampFormat,
       wordWrap: DEFAULT_UNIFIED_SETTINGS.wordWrap,
       diffIgnoreWhitespace: DEFAULT_UNIFIED_SETTINGS.diffIgnoreWhitespace,
+      environmentIdentificationMode: DEFAULT_UNIFIED_SETTINGS.environmentIdentificationMode,
       glassOpacity: DEFAULT_UNIFIED_SETTINGS.glassOpacity,
       sidebarThreadPreviewCount: DEFAULT_UNIFIED_SETTINGS.sidebarThreadPreviewCount,
       sidebarProjectGroupingMode: DEFAULT_UNIFIED_SETTINGS.sidebarProjectGroupingMode,
@@ -510,6 +528,9 @@ export function GeneralSettingsPanel() {
   const { theme, setTheme } = useTheme();
   const settings = usePrimarySettings();
   const updateSettings = useUpdatePrimarySettings();
+  const environmentStageLabel = useEnvironmentStageLabel();
+  const showEnvironmentIdentification =
+    resolveEnvironmentIdentificationPillLabel(environmentStageLabel) !== null;
   const lastEnabledProjectGroupingMode = useRef<SidebarProjectGroupingMode>(
     readLastEnabledProjectGroupingMode(),
   );
@@ -634,6 +655,48 @@ export function GeneralSettingsPanel() {
           }
         />
 
+        {showEnvironmentIdentification ? (
+          <SettingsRow
+            title="Environment identification"
+            description="Choose how Dev and Nightly environments are identified."
+            resetAction={
+              settings.environmentIdentificationMode !== DEFAULT_ENVIRONMENT_IDENTIFICATION_MODE ? (
+                <SettingResetButton
+                  label="environment identification"
+                  onClick={() =>
+                    updateSettings({
+                      environmentIdentificationMode: DEFAULT_ENVIRONMENT_IDENTIFICATION_MODE,
+                    })
+                  }
+                />
+              ) : null
+            }
+            control={
+              <Select
+                value={settings.environmentIdentificationMode}
+                onValueChange={(value) => {
+                  if (value === "artwork" || value === "pill" || value === "none") {
+                    updateSettings({ environmentIdentificationMode: value });
+                  }
+                }}
+              >
+                <SelectTrigger className="w-full sm:w-40" aria-label="Environment identification">
+                  <SelectValue>
+                    {ENVIRONMENT_IDENTIFICATION_LABELS[settings.environmentIdentificationMode]}
+                  </SelectValue>
+                </SelectTrigger>
+                <SelectPopup align="end" alignItemWithTrigger={false}>
+                  {Object.entries(ENVIRONMENT_IDENTIFICATION_LABELS).map(([value, label]) => (
+                    <SelectItem hideIndicator key={value} value={value}>
+                      {label}
+                    </SelectItem>
+                  ))}
+                </SelectPopup>
+              </Select>
+            }
+          />
+        ) : null}
+
         <SettingsRow
           title="Project Grouping"
           description="Combine matching repositories across environments."
diff --git a/apps/web/src/components/sidebar/SidebarChrome.tsx b/apps/web/src/components/sidebar/SidebarChrome.tsx
index b8d9512001c..09fcd773128 100644
--- a/apps/web/src/components/sidebar/SidebarChrome.tsx
+++ b/apps/web/src/components/sidebar/SidebarChrome.tsx
@@ -1,13 +1,16 @@
-import { useAtomValue } from "@effect/atom-react";
 import { SettingsIcon } from "lucide-react";
 import { memo, useCallback } from "react";
 import { Link, useNavigate } from "@tanstack/react-router";
 
-import { APP_STAGE_LABEL } from "../../branding";
+import { useEnvironmentIdentificationMode } from "../../hooks/useSettings";
 import { cn } from "../../lib/utils";
-import { primaryServerConfigAtom } from "../../state/server";
-import { resolveSidebarStageBadgeLabel } from "../Sidebar.logic";
-import { SidebarStageBackdrop, resolveSidebarStageBackdropVariant } from "../SidebarStageBackdrop";
+import {
+  resolveEnvironmentIdentificationPillLabel,
+  resolveSidebarStageBackdropVariant,
+  SidebarStageBackdrop,
+  useEnvironmentStageLabel,
+} from "../SidebarStageBackdrop";
+import { Badge } from "../ui/badge";
 import {
   SidebarFooter,
   SidebarHeader,
@@ -25,8 +28,16 @@ export const SidebarChromeHeader = memo(function SidebarChromeHeader({
 }: {
   isElectron: boolean;
 }) {
-  const stageLabel = useSidebarStageLabel();
-  const backdropVariant = resolveSidebarStageBackdropVariant(stageLabel);
+  const stageLabel = useEnvironmentStageLabel();
+  const environmentIdentificationMode = useEnvironmentIdentificationMode();
+  const backdropVariant = resolveSidebarStageBackdropVariant(
+    stageLabel,
+    environmentIdentificationMode === "artwork",
+  );
+  const pillLabel =
+    environmentIdentificationMode === "pill"
+      ? resolveEnvironmentIdentificationPillLabel(stageLabel)
+      : null;
 
   return (
     <SidebarHeader
@@ -44,6 +55,16 @@ export const SidebarChromeHeader = memo(function SidebarChromeHeader({
         )}
       />
       <SidebarBrand onBackdrop={backdropVariant !== null} />
+      {pillLabel ? (
+        <Badge
+          className="relative z-10 ml-1 rounded-full px-1.5 text-muted-foreground"
+          data-environment-identification="pill"
+          size="sm"
+          variant="secondary"
+        >
+          {pillLabel}
+        </Badge>
+      ) : null}
     </SidebarHeader>
   );
 });
@@ -71,16 +92,6 @@ function SidebarBrand({ onBackdrop }: { onBackdrop: boolean }) {
   );
 }
 
-function useSidebarStageLabel() {
-  const primaryServerVersion =
-    useAtomValue(primaryServerConfigAtom)?.environment.serverVersion ?? null;
-
-  return resolveSidebarStageBadgeLabel({
-    primaryServerVersion,
-    fallbackStageLabel: APP_STAGE_LABEL,
-  });
-}
-
 function T3Wordmark() {
   return (
     <svg
diff --git a/apps/web/src/hooks/useSettings.test.ts b/apps/web/src/hooks/useSettings.test.ts
index 7132c84c9d3..741579661e7 100644
--- a/apps/web/src/hooks/useSettings.test.ts
+++ b/apps/web/src/hooks/useSettings.test.ts
@@ -6,7 +6,18 @@ import {
 import { DEFAULT_CLIENT_SETTINGS } from "@t3tools/contracts/settings";
 import { describe, expect, it } from "vite-plus/test";
 
-import { mergeEnvironmentSettings } from "./useSettings";
+import { mergeEnvironmentSettings, resolveEnvironmentIdentificationMode } from "./useSettings";
+
+describe("resolveEnvironmentIdentificationMode", () => {
+  it("keeps identification hidden until client settings hydrate", () => {
+    expect(resolveEnvironmentIdentificationMode({ mode: "artwork", settingsHydrated: false })).toBe(
+      "none",
+    );
+    expect(resolveEnvironmentIdentificationMode({ mode: "pill", settingsHydrated: true })).toBe(
+      "pill",
+    );
+  });
+});
 
 describe("mergeEnvironmentSettings", () => {
   it("combines the selected environment's server settings with client preferences", () => {
diff --git a/apps/web/src/hooks/useSettings.ts b/apps/web/src/hooks/useSettings.ts
index 9f78e8a8527..739f6cfcea5 100644
--- a/apps/web/src/hooks/useSettings.ts
+++ b/apps/web/src/hooks/useSettings.ts
@@ -21,6 +21,7 @@ import {
   type ClientSettingsPatch,
   type ClientSettings,
   DEFAULT_CLIENT_SETTINGS,
+  type EnvironmentIdentificationMode,
   type UnifiedSettings,
 } from "@t3tools/contracts/settings";
 import { safeErrorLogAttributes } from "@t3tools/client-runtime/errors";
@@ -222,6 +223,20 @@ export function useClientSettings<T = ClientSettings>(
   return useMemo(() => (selector ? selector(settings) : (settings as T)), [selector, settings]);
 }
 
+export function resolveEnvironmentIdentificationMode(input: {
+  mode: EnvironmentIdentificationMode;
+  settingsHydrated: boolean;
+}): EnvironmentIdentificationMode {
+  // Avoid briefly rendering the default artwork before a persisted pill/none choice loads.
+  return input.settingsHydrated ? input.mode : "none";
+}
+
+export function useEnvironmentIdentificationMode(): EnvironmentIdentificationMode {
+  const settingsHydrated = useClientSettingsHydrated();
+  const mode = useClientSettingsValue().environmentIdentificationMode;
+  return resolveEnvironmentIdentificationMode({ mode, settingsHydrated });
+}
+
 /**
  * Resolved sidebar v2 state: an explicit choice in Settings → Beta if the user
  * has made one, otherwise the default for this build stage (on for nightly and
diff --git a/packages/contracts/src/settings.test.ts b/packages/contracts/src/settings.test.ts
index ed864344e35..2bc61d72f21 100644
--- a/packages/contracts/src/settings.test.ts
+++ b/packages/contracts/src/settings.test.ts
@@ -49,6 +49,24 @@ describe("ClientSettings glass opacity", () => {
   });
 });
 
+describe("ClientSettings environment identification", () => {
+  it("defaults to artwork and accepts each presentation mode", () => {
+    expect(decodeClientSettings({}).environmentIdentificationMode).toBe("artwork");
+
+    for (const mode of ["artwork", "pill", "none"] as const) {
+      expect(
+        decodeClientSettingsPatch({ environmentIdentificationMode: mode })
+          .environmentIdentificationMode,
+      ).toBe(mode);
+    }
+  });
+
+  it("rejects unsupported presentation modes", () => {
+    expect(() => decodeClientSettings({ environmentIdentificationMode: "badge" })).toThrow();
+    expect(() => decodeClientSettingsPatch({ environmentIdentificationMode: "badge" })).toThrow();
+  });
+});
+
 describe("ClientSettings sidebar v2", () => {
   it("defaults the beta off with a three-day auto-settle threshold", () => {
     const settings = decodeClientSettings({});
diff --git a/packages/contracts/src/settings.ts b/packages/contracts/src/settings.ts
index 8266ad3337f..b97d4681270 100644
--- a/packages/contracts/src/settings.ts
+++ b/packages/contracts/src/settings.ts
@@ -58,6 +58,9 @@ export const GlassOpacity = Schema.Int.check(
 );
 export type GlassOpacity = typeof GlassOpacity.Type;
 export const DEFAULT_GLASS_OPACITY: GlassOpacity = 80;
+export const EnvironmentIdentificationMode = Schema.Literals(["artwork", "pill", "none"]);
+export type EnvironmentIdentificationMode = typeof EnvironmentIdentificationMode.Type;
+export const DEFAULT_ENVIRONMENT_IDENTIFICATION_MODE: EnvironmentIdentificationMode = "artwork";
 
 export const ClientSettingsSchema = Schema.Struct({
   autoOpenPlanSidebar: Schema.Boolean.pipe(Schema.withDecodingDefault(Effect.succeed(false))),
@@ -67,6 +70,9 @@ export const ClientSettingsSchema = Schema.Struct({
     Schema.withDecodingDefault(Effect.succeed([])),
   ),
   diffIgnoreWhitespace: Schema.Boolean.pipe(Schema.withDecodingDefault(Effect.succeed(true))),
+  environmentIdentificationMode: EnvironmentIdentificationMode.pipe(
+    Schema.withDecodingDefault(Effect.succeed(DEFAULT_ENVIRONMENT_IDENTIFICATION_MODE)),
+  ),
   glassOpacity: GlassOpacity.pipe(
     Schema.withDecodingDefault(Effect.succeed(DEFAULT_GLASS_OPACITY)),
   ),
@@ -611,6 +617,7 @@ export const ClientSettingsPatch = Schema.Struct({
   confirmThreadArchive: Schema.optionalKey(Schema.Boolean),
   confirmThreadDelete: Schema.optionalKey(Schema.Boolean),
   diffIgnoreWhitespace: Schema.optionalKey(Schema.Boolean),
+  environmentIdentificationMode: Schema.optionalKey(EnvironmentIdentificationMode),
   glassOpacity: Schema.optionalKey(GlassOpacity),
   favorites: Schema.optionalKey(
     Schema.Array(