diff --git a/.planning/PROJECT.md b/.planning/PROJECT.md
index eb8465a..95f9c64 100644
--- a/.planning/PROJECT.md
+++ b/.planning/PROJECT.md
@@ -24,6 +24,20 @@ Make it effortless to manage gear and plan new purchases — see how a potential
 
 ### Active
 
+## Current Milestone: v1.1 Fixes & Polish
+
+**Goal:** Fix broken functionality, improve image handling UX, and replace emoji categories with icon picker.
+
+**Target features:**
+- Fix thread creation (missing database table)
+- Fix image display (uploaded but not rendering)
+- Redesign image upload UX (image preview with placeholder icon)
+- Display images on gear cards
+- Improve planning tab empty state
+- Replace emoji categories with Lucide icon picker
+
+### Future
+
 - [ ] Search items by name and filter by category
 - [ ] Side-by-side candidate comparison on weight and price
 - [ ] Candidate status tracking (researching → ordered → arrived)
@@ -77,4 +91,8 @@ Replaces spreadsheet-based gear tracking workflow.
 | Onboarding state in SQLite settings | Source of truth in DB, not Zustand | ✓ Good |
 
 ---
-*Last updated: 2026-03-15 after v1.0 milestone*
+| Lucide Icons for categories | Best outdoor/gear icon coverage, tree-shakeable, clean style | — Pending |
+| Stay with SQLite | Single-user app, no need for Postgres complexity | ✓ Good |
+
+---
+*Last updated: 2026-03-15 after v1.1 milestone start*
diff --git a/.planning/STATE.md b/.planning/STATE.md
index 2c3e963..77eee3f 100644
--- a/.planning/STATE.md
+++ b/.planning/STATE.md
@@ -1,17 +1,17 @@
 ---
 gsd_state_version: 1.0
-milestone: v1.0
-milestone_name: MVP
-status: milestone_complete
-stopped_at: "v1.0 MVP shipped"
+milestone: v1.1
+milestone_name: Fixes & Polish
+status: defining_requirements
+stopped_at: null
 last_updated: "2026-03-15"
-last_activity: 2026-03-15 — v1.0 milestone archived
+last_activity: 2026-03-15 — Milestone v1.1 started
 progress:
-  total_phases: 3
-  completed_phases: 3
-  total_plans: 10
-  completed_plans: 10
-  percent: 100
+  total_phases: 0
+  completed_phases: 0
+  total_plans: 0
+  completed_plans: 0
+  percent: 0
 ---
 
 # Project State
@@ -21,22 +21,21 @@ progress:
 See: .planning/PROJECT.md (updated 2026-03-15)
 
 **Core value:** Make it effortless to manage gear and plan new purchases — see how a potential buy affects your total setup weight and cost before committing.
-**Current focus:** Planning next milestone
+**Current focus:** Defining requirements for v1.1
 
 ## Current Position
 
-Milestone v1.0 MVP shipped 2026-03-15.
-All 3 phases, 10 plans complete.
-Ready for next milestone planning.
-
-Progress: [██████████] 100%
+Phase: Not started (defining requirements)
+Plan: —
+Status: Defining requirements
+Last activity: 2026-03-15 — Milestone v1.1 started
 
 ## Accumulated Context
 
 ### Decisions
 
-Decisions logged in PROJECT.md Key Decisions table.
-All v1.0 decisions have outcomes marked.
+- Stay with SQLite — single-user app, Postgres adds unnecessary complexity
+- Lucide Icons for category icons — best outdoor/gear coverage
 
 ### Pending Todos
 
@@ -44,10 +43,12 @@ None.
 
 ### Blockers/Concerns
 
-None active.
+- `threads` table missing from database (schema exists, never pushed)
+- Images upload but don't display in UI
+- Category emoji system being replaced with Lucide icons
 
 ## Session Continuity
 
 Last session: 2026-03-15
-Stopped at: v1.0 milestone complete
-Resume file: N/A — start next milestone with /gsd:new-milestone
+Stopped at: Defining v1.1 requirements
+Resume file: N/A