diff --git a/frontend/__tests__/components/workspace-toggle.test.tsx b/frontend/__tests__/components/workspace-toggle.test.tsx
new file mode 100644
index 000000000000..1dee5a80f4d7
--- /dev/null
+++ b/frontend/__tests__/components/workspace-toggle.test.tsx
@@ -0,0 +1,35 @@
+import { render, screen, fireEvent } from "@testing-library/react";
+import { describe, it, expect, vi } from "vitest";
+import { ToggleWorkspaceIconButton } from "#/components/shared/buttons/toggle-workspace-icon-button";
+
+describe("Workspace Toggle", () => {
+  it("should render toggle button with correct icon and label", () => {
+    const onClickMock = vi.fn();
+
+    // Test initial state (workspace visible)
+    const { rerender } = render(
+      <ToggleWorkspaceIconButton onClick={onClickMock} isHidden={false} />
+    );
+
+    const button = screen.getByTestId("toggle");
+    expect(button).toBeInTheDocument();
+    expect(button).toHaveAttribute("aria-label", "Close workspace");
+
+    // Test hidden state
+    rerender(
+      <ToggleWorkspaceIconButton onClick={onClickMock} isHidden={true} />
+    );
+    expect(button).toHaveAttribute("aria-label", "Open workspace");
+  });
+
+  it("should call onClick handler when clicked", () => {
+    const onClickMock = vi.fn();
+    render(
+      <ToggleWorkspaceIconButton onClick={onClickMock} isHidden={false} />
+    );
+
+    const button = screen.getByTestId("toggle");
+    fireEvent.click(button);
+    expect(onClickMock).toHaveBeenCalledTimes(1);
+  });
+});
diff --git a/frontend/src/components/shared/buttons/__tests__/toggle-workspace-icon-button.test.tsx b/frontend/src/components/shared/buttons/__tests__/toggle-workspace-icon-button.test.tsx
new file mode 100644
index 000000000000..4fede299732d
--- /dev/null
+++ b/frontend/src/components/shared/buttons/__tests__/toggle-workspace-icon-button.test.tsx
@@ -0,0 +1,46 @@
+import React from "react";
+import { render, screen } from "@testing-library/react";
+import { describe, it, expect, vi } from "vitest";
+import { ToggleWorkspaceIconButton } from "../toggle-workspace-icon-button";
+
+describe("ToggleWorkspaceIconButton", () => {
+  it("renders with correct dimensions and styling", () => {
+    const mockOnClick = vi.fn();
+    render(
+      <ToggleWorkspaceIconButton onClick={mockOnClick} isHidden={false} />,
+    );
+
+    const button = screen.getByTestId("toggle");
+    expect(button).toBeInTheDocument();
+    expect(button).toHaveClass("h-[100px] w-[20px]");
+    expect(button).toHaveClass("bg-neutral-800");
+    expect(button).toHaveClass("hover:bg-neutral-700");
+    expect(button).toHaveClass("rounded-md");
+  });
+
+  it("displays the correct icon based on isHidden prop", () => {
+    const mockOnClick = vi.fn();
+
+    const { rerender } = render(
+      <ToggleWorkspaceIconButton onClick={mockOnClick} isHidden={false} />,
+    );
+    expect(screen.getByLabelText("Close workspace")).toBeInTheDocument();
+    expect(screen.getByTestId("toggle")).toContainElement(
+      screen.getByTestId("arrow-forward-icon"),
+    );
+
+    rerender(<ToggleWorkspaceIconButton onClick={mockOnClick} isHidden />);
+    expect(screen.getByLabelText("Open workspace")).toBeInTheDocument();
+    expect(screen.getByTestId("toggle")).toContainElement(
+      screen.getByTestId("arrow-back-icon"),
+    );
+  });
+
+  it("remains visible when workspace is collapsed", () => {
+    const mockOnClick = vi.fn();
+    render(<ToggleWorkspaceIconButton onClick={mockOnClick} isHidden />);
+
+    const button = screen.getByTestId("toggle");
+    expect(button).toBeVisible();
+  });
+});
diff --git a/frontend/src/components/shared/buttons/icon-button.tsx b/frontend/src/components/shared/buttons/icon-button.tsx
index 66c86e2a58e3..34291293abd7 100644
--- a/frontend/src/components/shared/buttons/icon-button.tsx
+++ b/frontend/src/components/shared/buttons/icon-button.tsx
@@ -1,11 +1,12 @@
 import { Button } from "@nextui-org/react";
-import React, { MouseEventHandler, ReactElement } from "react";
+import React, { ReactElement } from "react";
 
 export interface IconButtonProps {
   icon: ReactElement;
-  onClick: MouseEventHandler<HTMLButtonElement>;
+  onClick: () => void;
   ariaLabel: string;
   testId?: string;
+  className?: string;
 }
 
 export function IconButton({
@@ -13,13 +14,14 @@ export function IconButton({
   onClick,
   ariaLabel,
   testId = "",
+  className = "",
 }: IconButtonProps): React.ReactElement {
   return (
     <Button
       type="button"
       variant="flat"
-      onClick={onClick}
-      className="cursor-pointer text-[12px] bg-transparent aspect-square px-0 min-w-[20px] h-[20px]"
+      onPress={onClick}
+      className={`cursor-pointer text-[12px] bg-transparent aspect-square px-0 min-w-[12px] h-[20px] ${className}`}
       aria-label={ariaLabel}
       data-testid={testId}
     >
diff --git a/frontend/src/components/shared/buttons/toggle-workspace-icon-button.tsx b/frontend/src/components/shared/buttons/toggle-workspace-icon-button.tsx
index 5eedd1ae8f1b..fce4da6ecdcf 100644
--- a/frontend/src/components/shared/buttons/toggle-workspace-icon-button.tsx
+++ b/frontend/src/components/shared/buttons/toggle-workspace-icon-button.tsx
@@ -14,20 +14,24 @@ export function ToggleWorkspaceIconButton({
     <IconButton
       icon={
         isHidden ? (
-          <IoIosArrowForward
-            size={20}
+          <IoIosArrowBack
+            size={10}
             className="text-neutral-400 hover:text-neutral-100 transition"
+            data-testid="arrow-back-icon"
           />
         ) : (
-          <IoIosArrowBack
-            size={20}
+          <IoIosArrowForward
+            size={10}
             className="text-neutral-400 hover:text-neutral-100 transition"
+            data-testid="arrow-forward-icon"
           />
         )
       }
       testId="toggle"
       ariaLabel={isHidden ? "Open workspace" : "Close workspace"}
+      title={isHidden ? "Open workspace" : "Close workspace"}
       onClick={onClick}
+      className="h-[80px] w-[8px] bg-neutral-800 hover:bg-neutral-700 rounded-md"
     />
   );
 }
diff --git a/frontend/src/routes/_oh.app/route.tsx b/frontend/src/routes/_oh.app/route.tsx
index 0e2e60ff3b86..d88a1f322f31 100644
--- a/frontend/src/routes/_oh.app/route.tsx
+++ b/frontend/src/routes/_oh.app/route.tsx
@@ -27,6 +27,7 @@ import { Container } from "#/components/layout/container";
 import Security from "#/components/shared/modals/security/security";
 import { CountBadge } from "#/components/layout/count-badge";
 import { TerminalStatusLabel } from "#/components/features/terminal/terminal-status-label";
+import { ToggleWorkspaceIconButton } from "#/components/shared/buttons/toggle-workspace-icon-button";
 
 function AppContent() {
   const { gitHubToken } = useAuth();
@@ -62,6 +63,12 @@ function AppContent() {
     dispatch(clearJupyter());
   });
 
+  const [isWorkspaceHidden, setIsWorkspaceHidden] = React.useState(false);
+
+  const toggleWorkspace = React.useCallback(() => {
+    setIsWorkspaceHidden((prev) => !prev);
+  }, []);
+
   const {
     isOpen: securityModalIsOpen,
     onOpen: onSecurityModalOpen,
@@ -71,15 +78,31 @@ function AppContent() {
   return (
     <WsClientProvider ghToken={gitHubToken} conversationId={conversationId}>
       <EventHandler>
-        <div className="flex flex-col h-full gap-3">
-          <div className="flex h-full overflow-auto gap-3">
-            <Container className="w-full md:w-[390px] max-h-full relative">
-              <ChatInterface />
-            </Container>
+        <div className="flex flex-col h-full">
+          <div className="flex flex-grow overflow-hidden">
+            <div
+              className={`relative flex-grow mr-5 ${isWorkspaceHidden ? "w-full" : "md:w-[390px]"}`}
+            >
+              <Container className="h-full">
+                <ChatInterface />
+              </Container>
+              <div
+                className={`absolute top-1/2 -translate-y-1/2 ${isWorkspaceHidden ? "-right-4" : "-right-4"} z-10`}
+              >
+                <ToggleWorkspaceIconButton
+                  onClick={toggleWorkspace}
+                  isHidden={isWorkspaceHidden}
+                />
+              </div>
+            </div>
 
-            <div className="hidden md:flex flex-col grow gap-3">
+            <div
+              className={`hidden md:flex flex-col flex-grow transition-all duration-300 ${
+                isWorkspaceHidden ? "w-0 opacity-0 overflow-hidden" : ""
+              }`}
+            >
               <Container
-                className="h-2/3"
+                className="flex-grow"
                 labels={[
                   { label: "Workspace", to: "", icon: <CodeIcon /> },
                   { label: "Jupyter", to: "jupyter", icon: <ListIcon /> },
diff --git a/pyproject.toml b/pyproject.toml
index 4a4131e325b5..155f62b8c764 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -100,6 +100,7 @@ reportlab = "*"
 [tool.coverage.run]
 concurrency = ["gevent"]
 
+
 [tool.poetry.group.runtime.dependencies]
 jupyterlab = "*"
 notebook = "*"
@@ -129,6 +130,7 @@ ignore = ["D1"]
 [tool.ruff.lint.pydocstyle]
 convention = "google"
 
+
 [tool.poetry.group.evaluation.dependencies]
 streamlit = "*"
 whatthepatch = "*"