diff --git a/docs/superpowers/specs/2026-04-03-user-menu-design.md b/docs/superpowers/specs/2026-04-03-user-menu-design.md
new file mode 100644
index 0000000..33f5256
--- /dev/null
+++ b/docs/superpowers/specs/2026-04-03-user-menu-design.md
@@ -0,0 +1,35 @@
+# User Menu Design
+
+## Summary
+
+Replace the plain "Sign out" button in the header with a user icon that opens a dropdown menu containing Settings and Sign out options. This provides a way to navigate to the Settings page from the header.
+
+## Components
+
+### UserMenu (`src/client/components/UserMenu.tsx`)
+
+New component rendered by `TotalsBar` when authenticated.
+
+**Trigger:** Circular `CircleUser` icon button (Lucide). Styled consistently with surrounding header elements.
+
+**Dropdown:** Absolutely-positioned popover anchored to the right edge, appearing below the icon:
+
+1. **Settings** — `Settings` (gear) icon + "Settings" label, `<Link to="/settings">`
+2. **Divider** — thin horizontal line
+3. **Sign out** — `LogOut` icon + "Sign out" label, calls `logout.mutate()` from `useLogout()`
+
+**Behavior:**
+- Click icon toggles open/close
+- Click outside closes (via `useEffect` with document click listener)
+- Clicking a menu item closes the dropdown
+- Dropdown anchored right so it doesn't overflow viewport
+
+### TotalsBar Changes (`src/client/components/TotalsBar.tsx`)
+
+- When `isAuthenticated`: render `<UserMenu />` in place of the current "Sign out" button
+- When not authenticated: keep the existing "Sign in" link unchanged
+- Remove the `useLogout` hook usage from TotalsBar (moved into UserMenu)
+
+## No Backend Changes
+
+The existing `/api/auth/me` endpoint and `useAuth` hook are sufficient. No username display needed — using a generic user icon.
diff --git a/src/client/components/TotalsBar.tsx b/src/client/components/TotalsBar.tsx
index 1ad86d3..40e6aae 100644
--- a/src/client/components/TotalsBar.tsx
+++ b/src/client/components/TotalsBar.tsx
@@ -1,10 +1,11 @@
 import { Link } from "@tanstack/react-router";
-import { useAuth, useLogout } from "../hooks/useAuth";
+import { useAuth } from "../hooks/useAuth";
 import { useFormatters } from "../hooks/useFormatters";
 import { useUpdateSetting } from "../hooks/useSettings";
 import { useTotals } from "../hooks/useTotals";
 import type { WeightUnit } from "../lib/formatters";
 import { LucideIcon } from "../lib/iconData";
+import { UserMenu } from "./UserMenu";
 
 const UNITS: WeightUnit[] = ["g", "oz", "lb", "kg"];
 
@@ -21,7 +22,6 @@ export function TotalsBar({
 }: TotalsBarProps) {
 	const { data } = useTotals();
 	const { data: auth } = useAuth();
-	const logout = useLogout();
 	const isAuthenticated = !!auth?.user;
 	const { weight, price, unit } = useFormatters();
 	const updateSetting = useUpdateSetting();
@@ -104,24 +104,16 @@ export function TotalsBar({
 								))}
 							</div>
 						)}
-						<div className="flex items-center gap-2 ml-auto">
-							{isAuthenticated ? (
-								<button
-									type="button"
-									onClick={() => logout.mutate()}
-									className="text-xs text-gray-500 hover:text-gray-700 transition-colors"
-								>
-									Sign out
-								</button>
-							) : (
-								<Link
-									to="/login"
-									className="text-xs text-gray-500 hover:text-gray-700 transition-colors"
-								>
-									Sign in
-								</Link>
-							)}
-						</div>
+						{isAuthenticated ? (
+							<UserMenu />
+						) : (
+							<Link
+								to="/login"
+								className="text-xs text-gray-500 hover:text-gray-700 transition-colors"
+							>
+								Sign in
+							</Link>
+						)}
 					</div>
 				</div>
 			</div>
diff --git a/src/client/components/UserMenu.tsx b/src/client/components/UserMenu.tsx
new file mode 100644
index 0000000..4704650
--- /dev/null
+++ b/src/client/components/UserMenu.tsx
@@ -0,0 +1,57 @@
+import { Link } from "@tanstack/react-router";
+import { useEffect, useRef, useState } from "react";
+import { useLogout } from "../hooks/useAuth";
+import { LucideIcon } from "../lib/iconData";
+
+export function UserMenu() {
+	const [open, setOpen] = useState(false);
+	const menuRef = useRef<HTMLDivElement>(null);
+	const logout = useLogout();
+
+	useEffect(() => {
+		if (!open) return;
+		function handleClick(e: MouseEvent) {
+			if (menuRef.current && !menuRef.current.contains(e.target as Node)) {
+				setOpen(false);
+			}
+		}
+		document.addEventListener("mousedown", handleClick);
+		return () => document.removeEventListener("mousedown", handleClick);
+	}, [open]);
+
+	return (
+		<div ref={menuRef} className="relative">
+			<button
+				type="button"
+				onClick={() => setOpen((prev) => !prev)}
+				className="flex items-center justify-center w-8 h-8 rounded-full text-gray-500 hover:text-gray-700 hover:bg-gray-100 transition-colors"
+			>
+				<LucideIcon name="circle-user" size={22} />
+			</button>
+			{open && (
+				<div className="absolute right-0 mt-1 w-40 bg-white rounded-lg shadow-lg border border-gray-200 py-1 z-50">
+					<Link
+						to="/settings"
+						onClick={() => setOpen(false)}
+						className="flex items-center gap-2 px-3 py-2 text-sm text-gray-700 hover:bg-gray-50 transition-colors"
+					>
+						<LucideIcon name="settings" size={16} className="text-gray-400" />
+						Settings
+					</Link>
+					<div className="border-t border-gray-100 my-1" />
+					<button
+						type="button"
+						onClick={() => {
+							setOpen(false);
+							logout.mutate();
+						}}
+						className="flex items-center gap-2 w-full px-3 py-2 text-sm text-gray-700 hover:bg-gray-50 transition-colors"
+					>
+						<LucideIcon name="log-out" size={16} className="text-gray-400" />
+						Sign out
+					</button>
+				</div>
+			)}
+		</div>
+	);
+}