diff --git a/frontend/ui/src/components/layout/app-layout.tsx b/frontend/ui/src/components/layout/app-layout.tsx
index 69d4e22a..d6e7e4df 100644
--- a/frontend/ui/src/components/layout/app-layout.tsx
+++ b/frontend/ui/src/components/layout/app-layout.tsx
@@ -1,6 +1,6 @@
 "use client";
 
-import { useState, createContext, useContext, ReactNode } from "react";
+import { useState, useEffect, createContext, useContext, ReactNode } from "react";
 import { usePathname } from "next/navigation";
 import { Sidebar } from "./sidebar";
 import { Button } from "@/components/ui/button";
@@ -30,6 +30,13 @@ export function AppLayout({ children }: { children: React.ReactNode }) {
   const [headerContent, setHeaderContent] = useState<ReactNode>(null);
   const [aiPanelOpen, setAiPanelOpen] = useState(false);
   const pathname = usePathname();
+  const isProjectPage = pathname?.includes("/projects/");
+
+  useEffect(() => {
+    if (!isProjectPage) {
+      setAiPanelOpen(false);
+    }
+  }, [isProjectPage]);
 
   // Don't show layout on auth pages
   if (pathname.startsWith("/auth/")) {
@@ -60,15 +67,17 @@ export function AppLayout({ children }: { children: React.ReactNode }) {
             </Button>
             {headerContent}
             <div className="ml-auto">
-              <Button
-                variant="ghost"
-                size="icon"
-                className="h-8 w-8 shrink-0"
-                onClick={() => setAiPanelOpen(!aiPanelOpen)}
-                title="AI Assistant"
-              >
-                <BotMessageSquare className="h-4 w-4" />
-              </Button>
+              {isProjectPage && (
+                <Button
+                  variant="ghost"
+                  size="icon"
+                  className="h-8 w-8 shrink-0"
+                  onClick={() => setAiPanelOpen(!aiPanelOpen)}
+                  title="AI Assistant"
+                >
+                  <BotMessageSquare className="h-4 w-4" />
+                </Button>
+              )}
             </div>
           </header>
           <main className="flex-1 overflow-hidden">{children}</main>