diff --git a/app/rooms/[roomName]/PageClientImpl.tsx b/app/rooms/[roomName]/PageClientImpl.tsx
index d31d6bf..1acb378 100644
--- a/app/rooms/[roomName]/PageClientImpl.tsx
+++ b/app/rooms/[roomName]/PageClientImpl.tsx
@@ -7,6 +7,8 @@ import { KeyboardShortcuts } from '@/lib/KeyboardShortcuts';
 import { RecordingIndicator } from '@/lib/RecordingIndicator';
 import { SettingsMenu } from '@/lib/SettingsMenu';
 import { ConnectionDetails } from '@/lib/types';
+import { SubtitlesOverlay } from '@/lib/SubtitlesOverlay';
+import { useSubtitleSettings } from '@/lib/SubtitlesSettings';
 import {
   formatChatMessageLinks,
   LocalUserChoices,
@@ -100,6 +102,7 @@ function VideoConferenceComponent(props: {
   const keyProvider = new ExternalE2EEKeyProvider();
   const { worker, e2eePassphrase } = useSetupE2EE();
   const e2eeEnabled = !!(e2eePassphrase && worker);
+  const { settings: subtitleSettings } = useSubtitleSettings();
 
   const [e2eeSetupComplete, setE2eeSetupComplete] = React.useState(false);
 
@@ -223,8 +226,9 @@ function VideoConferenceComponent(props: {
         <KeyboardShortcuts />
         <VideoConference
           chatMessageFormatter={formatChatMessageLinks}
-          SettingsComponent={SHOW_SETTINGS_MENU ? SettingsMenu : undefined}
+          SettingsComponent={SettingsMenu}
         />
+        <SubtitlesOverlay settings={subtitleSettings} />
         <DebugMode />
         <RecordingIndicator />
       </RoomContext.Provider>
diff --git a/lib/SettingsMenu.tsx b/lib/SettingsMenu.tsx
index 9cf7c35..81ed607 100644
--- a/lib/SettingsMenu.tsx
+++ b/lib/SettingsMenu.tsx
@@ -11,6 +11,7 @@ import {
 import styles from '../styles/SettingsMenu.module.css';
 import { CameraSettings } from './CameraSettings';
 import { MicrophoneSettings } from './MicrophoneSettings';
+import { SubtitlesSettings, useSubtitleSettings } from './SubtitlesSettings';
 /**
  * @alpha
  */
@@ -23,10 +24,12 @@ export function SettingsMenu(props: SettingsMenuProps) {
   const layoutContext = useMaybeLayoutContext();
   const room = useRoomContext();
   const recordingEndpoint = process.env.NEXT_PUBLIC_LK_RECORD_ENDPOINT;
+  const { settings: subtitleSettings, updateSettings: updateSubtitleSettings } = useSubtitleSettings();
 
   const settings = React.useMemo(() => {
     return {
       media: { camera: true, microphone: true, label: 'Media Devices', speaker: true },
+      subtitles: { label: 'Subtitles' },
       recording: recordingEndpoint ? { label: 'Recording' } : undefined,
     };
   }, []);
@@ -125,6 +128,12 @@ export function SettingsMenu(props: SettingsMenuProps) {
             )}
           </>
         )}
+        {activeTab === 'subtitles' && (
+          <SubtitlesSettings 
+            settings={subtitleSettings} 
+            onChange={updateSubtitleSettings} 
+          />
+        )}
         {activeTab === 'recording' && (
           <>
             <h3>Record Meeting</h3>
diff --git a/lib/SubtitlesOverlay.tsx b/lib/SubtitlesOverlay.tsx
new file mode 100644
index 0000000..f5b7b14
--- /dev/null
+++ b/lib/SubtitlesOverlay.tsx
@@ -0,0 +1,191 @@
+'use client';
+
+import * as React from 'react';
+import { useRoomContext } from '@livekit/components-react';
+import { RoomEvent, DataPacket_Kind, RemoteParticipant } from 'livekit-client';
+import styles from '@/styles/Subtitles.module.css';
+
+export interface SubtitleSettings {
+  enabled: boolean;
+  fontSize: number; // 18-40
+  position: 'top' | 'center' | 'bottom';
+  backgroundColor: string;
+}
+
+export const defaultSubtitleSettings: SubtitleSettings = {
+  enabled: true,
+  fontSize: 24,
+  position: 'bottom',
+  backgroundColor: 'rgba(0, 0, 0, 0.85)',
+};
+
+interface SubtitleLine {
+  id: string;
+  speaker: string;
+  text: string;
+  timestamp: number;
+  displayTime: number; // calculated display time in ms
+}
+
+// Calculate display time based on text length
+// Average reading speed: ~200 words per minute = ~3.3 words per second
+// Average word length: ~5 characters
+// So roughly 16-17 characters per second for comfortable reading
+// Min 2s, max 8s
+function calculateDisplayTime(text: string): number {
+  const charsPerSecond = 15;
+  const minTime = 2000; // 2 seconds
+  const maxTime = 8000; // 8 seconds
+  const calculated = (text.length / charsPerSecond) * 1000;
+  return Math.max(minTime, Math.min(maxTime, calculated));
+}
+
+interface SubtitlesOverlayProps {
+  settings: SubtitleSettings;
+}
+
+export function SubtitlesOverlay({ settings }: SubtitlesOverlayProps) {
+  const room = useRoomContext();
+  const [lines, setLines] = React.useState<SubtitleLine[]>([]);
+  const lineIdRef = React.useRef(0);
+  const containerRef = React.useRef<HTMLDivElement>(null);
+  const queueRef = React.useRef<SubtitleLine[]>([]);
+  const currentTimeoutRef = React.useRef<NodeJS.Timeout | null>(null);
+  const currentLineIdRef = React.useRef<string | null>(null);
+
+  // Show next subtitle from queue
+  const showNext = React.useCallback(() => {
+    // Clear any pending timeout
+    if (currentTimeoutRef.current) {
+      clearTimeout(currentTimeoutRef.current);
+      currentTimeoutRef.current = null;
+    }
+
+    // Remove current line immediately if exists
+    if (currentLineIdRef.current) {
+      setLines((prev) => prev.filter((l) => l.id !== currentLineIdRef.current));
+      currentLineIdRef.current = null;
+    }
+
+    // Nothing in queue
+    if (queueRef.current.length === 0) {
+      return;
+    }
+
+    // Get next line
+    const nextLine = queueRef.current.shift()!;
+    nextLine.timestamp = Date.now();
+    currentLineIdRef.current = nextLine.id;
+
+    setLines((prev) => [...prev.slice(-2), nextLine]); // Keep max 3 lines
+
+    // Schedule next subtitle
+    currentTimeoutRef.current = setTimeout(() => {
+      setLines((prev) => prev.filter((l) => l.id !== nextLine.id));
+      currentLineIdRef.current = null;
+      showNext();
+    }, nextLine.displayTime);
+  }, []);
+
+  // Listen for data messages on lk.subtitle topic
+  React.useEffect(() => {
+    if (!room || !settings.enabled) return;
+
+    const handleDataReceived = (
+      payload: Uint8Array,
+      participant?: RemoteParticipant,
+      kind?: DataPacket_Kind,
+      topic?: string,
+    ) => {
+      if (topic !== 'lk.subtitle') return;
+
+      try {
+        const raw = new TextDecoder().decode(payload).trim();
+        if (!raw) return;
+
+        // Parse JSON: {speaker, text}
+        const data = JSON.parse(raw);
+        const speaker = data.speaker || 'Unknown';
+        const text = data.text || raw;
+        const displayTime = calculateDisplayTime(text);
+
+        const newLine: SubtitleLine = {
+          id: `sub-${lineIdRef.current++}`,
+          speaker,
+          text,
+          timestamp: Date.now(),
+          displayTime,
+        };
+
+        queueRef.current.push(newLine);
+
+        // If queue is growing (more than 2), immediately switch to next
+        if (queueRef.current.length > 2) {
+          showNext();
+        } else if (!currentLineIdRef.current) {
+          showNext();
+        }
+      } catch (e) {
+        console.error('Failed to parse subtitle:', e);
+      }
+    };
+
+    room.on(RoomEvent.DataReceived, handleDataReceived);
+    return () => {
+      room.off(RoomEvent.DataReceived, handleDataReceived);
+      if (currentTimeoutRef.current) {
+        clearTimeout(currentTimeoutRef.current);
+      }
+    };
+  }, [room, settings.enabled, showNext]);
+
+  if (!settings.enabled || lines.length === 0) {
+    return null;
+  }
+
+  const positionClass = {
+    top: styles.positionTop,
+    center: styles.positionCenter,
+    bottom: styles.positionBottom,
+  }[settings.position];
+
+  return (
+    <div
+      ref={containerRef}
+      className={`${styles.subtitlesContainer} ${positionClass}`}
+      style={
+        {
+          '--subtitle-font-size': `${settings.fontSize}px`,
+          '--subtitle-font-family': '"TWK Everett", sans-serif',
+          '--subtitle-bg': settings.backgroundColor,
+          '--subtitle-text': '#f0f0f0',
+        } as React.CSSProperties
+      }
+    >
+      <div className={styles.subtitlesInner}>
+        {lines.map((line, index) => {
+          // Calculate fade based on display time
+          const age = Date.now() - line.timestamp;
+          const fadeStart = line.displayTime * 0.7; // Start fading at 70%
+          const opacity = age > fadeStart ? 1 - (age - fadeStart) / (line.displayTime * 0.3) : 1;
+
+          return (
+            <div
+              key={line.id}
+              className={styles.subtitleLine}
+              style={{
+                opacity: Math.max(0, Math.min(1, opacity)),
+                animationDelay: `${index * 0.05}s`,
+              }}
+            >
+              <span className={styles.speaker}>{line.speaker}</span>
+              <span className={styles.text}>{line.text}</span>
+            </div>
+          );
+        })}
+      </div>
+    </div>
+  );
+}
+
+export default SubtitlesOverlay;
diff --git a/lib/SubtitlesSettings.tsx b/lib/SubtitlesSettings.tsx
new file mode 100644
index 0000000..4084b2b
--- /dev/null
+++ b/lib/SubtitlesSettings.tsx
@@ -0,0 +1,156 @@
+'use client';
+
+import * as React from 'react';
+import { SubtitleSettings, defaultSubtitleSettings } from './SubtitlesOverlay';
+
+interface SubtitlesSettingsProps {
+  settings: SubtitleSettings;
+  onChange: (settings: SubtitleSettings) => void;
+}
+
+export function SubtitlesSettings({ settings, onChange }: SubtitlesSettingsProps) {
+  const updateSetting = <K extends keyof SubtitleSettings>(key: K, value: SubtitleSettings[K]) => {
+    onChange({ ...settings, [key]: value });
+  };
+
+  return (
+    <div style={{ display: 'flex', flexDirection: 'column', gap: '0.75rem' }}>
+      <h3 style={{ marginBottom: '0.25rem' }}>Subtitles</h3>
+      <section className="lk-button-group">
+        <span className="lk-button">Show Subtitles</span>
+        <div className="lk-button-group-menu">
+          <button
+            className="lk-button"
+            aria-pressed={settings.enabled}
+            onClick={() => updateSetting('enabled', !settings.enabled)}
+          >
+            {settings.enabled ? 'On' : 'Off'}
+          </button>
+        </div>
+      </section>
+
+      {settings.enabled && (
+        <>
+          <section className="lk-button-group">
+            <span className="lk-button">Font Size</span>
+            <div className="lk-button-group-menu">
+              <select
+                className="lk-button"
+                value={settings.fontSize}
+                onChange={(e) => updateSetting('fontSize', Number(e.target.value))}
+                style={{ minWidth: '100px' }}
+              >
+                <option value={18}>Small</option>
+                <option value={24}>Medium</option>
+                <option value={32}>Large</option>
+                <option value={40}>Extra Large</option>
+              </select>
+            </div>
+          </section>
+
+          <section className="lk-button-group">
+            <span className="lk-button">Position</span>
+            <div className="lk-button-group-menu">
+              <select
+                className="lk-button"
+                value={settings.position}
+                onChange={(e) =>
+                  updateSetting('position', e.target.value as 'top' | 'center' | 'bottom')
+                }
+                style={{ minWidth: '100px' }}
+              >
+                <option value="top">Top</option>
+                <option value="center">Center</option>
+                <option value="bottom">Bottom</option>
+              </select>
+            </div>
+          </section>
+
+          <section className="lk-button-group">
+            <span className="lk-button">Background</span>
+            <div className="lk-button-group-menu">
+              <select
+                className="lk-button"
+                value={settings.backgroundColor}
+                onChange={(e) => updateSetting('backgroundColor', e.target.value)}
+                style={{ minWidth: '100px' }}
+              >
+                <option value="rgba(0, 0, 0, 0.85)">Dark</option>
+                <option value="rgba(0, 0, 0, 0.6)">Medium</option>
+                <option value="rgba(0, 0, 0, 0.4)">Light</option>
+                <option value="transparent">None</option>
+              </select>
+            </div>
+          </section>
+        </>
+      )}
+    </div>
+  );
+}
+
+// Hook for managing subtitle settings with localStorage persistence
+export function useSubtitleSettings() {
+  const [settings, setSettings] = React.useState<SubtitleSettings>(defaultSubtitleSettings);
+  const [isLoaded, setIsLoaded] = React.useState(false);
+
+  // Load from localStorage on mount
+  React.useEffect(() => {
+    try {
+      const saved = localStorage.getItem('subtitle-settings');
+      if (saved) {
+        setSettings({ ...defaultSubtitleSettings, ...JSON.parse(saved) });
+      }
+    } catch (e) {
+      console.error('Failed to load subtitle settings:', e);
+    }
+    setIsLoaded(true);
+  }, []);
+
+  // Listen for storage changes from other components
+  React.useEffect(() => {
+    const handleStorageChange = (e: StorageEvent) => {
+      if (e.key === 'subtitle-settings' && e.newValue) {
+        try {
+          setSettings({ ...defaultSubtitleSettings, ...JSON.parse(e.newValue) });
+        } catch (err) {
+          console.error('Failed to parse subtitle settings:', err);
+        }
+      }
+    };
+
+    // Also listen for custom event for same-tab updates
+    const handleCustomEvent = () => {
+      try {
+        const saved = localStorage.getItem('subtitle-settings');
+        if (saved) {
+          setSettings({ ...defaultSubtitleSettings, ...JSON.parse(saved) });
+        }
+      } catch (e) {
+        console.error('Failed to load subtitle settings:', e);
+      }
+    };
+
+    window.addEventListener('storage', handleStorageChange);
+    window.addEventListener('subtitle-settings-updated', handleCustomEvent);
+    return () => {
+      window.removeEventListener('storage', handleStorageChange);
+      window.removeEventListener('subtitle-settings-updated', handleCustomEvent);
+    };
+  }, []);
+
+  // Save to localStorage on change and notify other components
+  const updateSettings = React.useCallback((newSettings: SubtitleSettings) => {
+    setSettings(newSettings);
+    try {
+      localStorage.setItem('subtitle-settings', JSON.stringify(newSettings));
+      // Dispatch custom event to notify same-tab listeners
+      window.dispatchEvent(new Event('subtitle-settings-updated'));
+    } catch (e) {
+      console.error('Failed to save subtitle settings:', e);
+    }
+  }, []);
+
+  return { settings, updateSettings, isLoaded };
+}
+
+export default SubtitlesSettings;
diff --git a/styles/Subtitles.module.css b/styles/Subtitles.module.css
new file mode 100644
index 0000000..2e13a61
--- /dev/null
+++ b/styles/Subtitles.module.css
@@ -0,0 +1,279 @@
+/* Subtitles Overlay - Cinematic Style */
+
+.subtitlesContainer {
+  position: fixed;
+  left: 0;
+  right: 0;
+  z-index: 100;
+  pointer-events: none;
+  padding: 1.5rem 3rem;
+  display: flex;
+  justify-content: center;
+}
+
+.positionTop {
+  top: 2rem;
+}
+
+.positionCenter {
+  top: 50%;
+  transform: translateY(-50%);
+}
+
+.positionBottom {
+  bottom: 4rem;
+}
+
+.subtitlesInner {
+  max-width: 85%;
+  display: flex;
+  flex-direction: column;
+  gap: 0.5rem;
+  align-items: center;
+}
+
+.subtitleLine {
+  font-family: var(--subtitle-font-family);
+  font-size: var(--subtitle-font-size);
+  font-weight: 400;
+  line-height: 1.5;
+  text-align: center;
+  padding: 0.6rem 1.4rem;
+  border-radius: 6px;
+  background: var(--subtitle-bg);
+  color: var(--subtitle-text);
+  backdrop-filter: blur(12px);
+  -webkit-backdrop-filter: blur(12px);
+  box-shadow: 
+    0 4px 24px rgba(0, 0, 0, 0.4),
+    0 0 0 1px rgba(255, 255, 255, 0.05);
+  animation: slideIn 0.3s cubic-bezier(0.16, 1, 0.3, 1) forwards;
+  transform-origin: center bottom;
+  letter-spacing: 0.01em;
+}
+
+@keyframes slideIn {
+  from {
+    opacity: 0;
+    transform: translateY(12px) scale(0.96);
+    filter: blur(4px);
+  }
+  to {
+    opacity: 1;
+    transform: translateY(0) scale(1);
+    filter: blur(0);
+  }
+}
+
+.speaker {
+  font-weight: 600;
+  margin-right: 0.5em;
+  text-transform: uppercase;
+  font-size: 0.75em;
+  letter-spacing: 0.08em;
+  color: #4ECDC4; /* Teal accent */
+}
+
+.speaker::after {
+  content: '';
+  display: inline-block;
+  width: 4px;
+  height: 4px;
+  background: currentColor;
+  border-radius: 50%;
+  margin-left: 0.6em;
+  margin-right: 0.3em;
+  vertical-align: middle;
+  opacity: 0.6;
+}
+
+.text {
+  font-weight: 400;
+  text-shadow: 0 1px 2px rgba(0, 0, 0, 0.3);
+}
+
+/* Settings Panel Styles */
+.settingsPanel {
+  background: rgba(18, 18, 20, 0.95);
+  border: 1px solid rgba(255, 255, 255, 0.08);
+  border-radius: 12px;
+  padding: 1.25rem;
+  width: 320px;
+  backdrop-filter: blur(20px);
+  -webkit-backdrop-filter: blur(20px);
+  box-shadow: 
+    0 20px 60px rgba(0, 0, 0, 0.5),
+    0 0 0 1px rgba(255, 255, 255, 0.03) inset;
+}
+
+.settingsTitle {
+  font-family: 'TWK Everett', sans-serif;
+  font-size: 0.7rem;
+  font-weight: 500;
+  text-transform: uppercase;
+  letter-spacing: 0.12em;
+  color: rgba(255, 255, 255, 0.4);
+  margin: 0 0 1rem 0;
+  padding-bottom: 0.75rem;
+  border-bottom: 1px solid rgba(255, 255, 255, 0.06);
+}
+
+.settingsRow {
+  display: flex;
+  align-items: center;
+  justify-content: space-between;
+  margin-bottom: 0.875rem;
+}
+
+.settingsRow:last-child {
+  margin-bottom: 0;
+}
+
+.settingsLabel {
+  font-family: 'TWK Everett', sans-serif;
+  font-size: 0.85rem;
+  font-weight: 400;
+  color: rgba(255, 255, 255, 0.7);
+}
+
+.settingsControl {
+  display: flex;
+  align-items: center;
+  gap: 0.5rem;
+}
+
+/* Toggle Switch */
+.toggle {
+  position: relative;
+  width: 44px;
+  height: 24px;
+  background: rgba(255, 255, 255, 0.1);
+  border-radius: 12px;
+  cursor: pointer;
+  transition: background 0.2s ease;
+}
+
+.toggle.active {
+  background: #ff6352;
+}
+
+.toggleKnob {
+  position: absolute;
+  top: 2px;
+  left: 2px;
+  width: 20px;
+  height: 20px;
+  background: white;
+  border-radius: 50%;
+  transition: transform 0.2s cubic-bezier(0.16, 1, 0.3, 1);
+  box-shadow: 0 2px 4px rgba(0, 0, 0, 0.2);
+}
+
+.toggle.active .toggleKnob {
+  transform: translateX(20px);
+}
+
+/* Slider */
+.slider {
+  -webkit-appearance: none;
+  appearance: none;
+  width: 100px;
+  height: 4px;
+  background: rgba(255, 255, 255, 0.15);
+  border-radius: 2px;
+  outline: none;
+}
+
+.slider::-webkit-slider-thumb {
+  -webkit-appearance: none;
+  appearance: none;
+  width: 16px;
+  height: 16px;
+  background: #ff6352;
+  border-radius: 50%;
+  cursor: pointer;
+  box-shadow: 0 2px 8px rgba(255, 99, 82, 0.4);
+  transition: transform 0.15s ease;
+}
+
+.slider::-webkit-slider-thumb:hover {
+  transform: scale(1.15);
+}
+
+.sliderValue {
+  font-family: 'TWK Everett', sans-serif;
+  font-size: 0.75rem;
+  color: rgba(255, 255, 255, 0.5);
+  min-width: 2rem;
+  text-align: right;
+}
+
+/* Select Dropdown */
+.select {
+  font-family: 'TWK Everett', sans-serif;
+  font-size: 0.8rem;
+  padding: 0.4rem 0.6rem;
+  background: rgba(255, 255, 255, 0.08);
+  border: 1px solid rgba(255, 255, 255, 0.1);
+  border-radius: 6px;
+  color: rgba(255, 255, 255, 0.8);
+  cursor: pointer;
+  outline: none;
+  transition: all 0.15s ease;
+}
+
+.select:hover {
+  background: rgba(255, 255, 255, 0.12);
+  border-color: rgba(255, 255, 255, 0.15);
+}
+
+.select:focus {
+  border-color: #ff6352;
+  box-shadow: 0 0 0 2px rgba(255, 99, 82, 0.2);
+}
+
+/* Color Picker */
+.colorPicker {
+  width: 32px;
+  height: 24px;
+  border: none;
+  border-radius: 4px;
+  cursor: pointer;
+  padding: 0;
+  background: none;
+}
+
+.colorPicker::-webkit-color-swatch-wrapper {
+  padding: 0;
+}
+
+.colorPicker::-webkit-color-swatch {
+  border: 1px solid rgba(255, 255, 255, 0.15);
+  border-radius: 4px;
+}
+
+/* Divider */
+.settingsDivider {
+  height: 1px;
+  background: rgba(255, 255, 255, 0.06);
+  margin: 1rem 0;
+}
+
+/* Responsive adjustments */
+@media (max-width: 768px) {
+  .subtitlesContainer {
+    padding: 1rem 1.5rem;
+  }
+  
+  .subtitlesInner {
+    max-width: 95%;
+  }
+  
+  .subtitleLine {
+    font-size: calc(var(--subtitle-font-size) * 0.85);
+    padding: 0.5rem 1rem;
+  }
+}
+
+
+