diff --git a/app/frontend/static/css/style.css b/app/frontend/static/css/style.css
index c53253d..cc446dc 100644
--- a/app/frontend/static/css/style.css
+++ b/app/frontend/static/css/style.css
@@ -1116,6 +1116,42 @@ input[type="file"]#image-upload {
   padding: 2px 4px;
   font-size: 11px;
 }
+.layer-class-input.tagify {
+  --tag-pad: 0.2em 0.6em;
+  --tag-bg: #0052bf;
+  --tag-text-color: #fff;
+  --tags-border-color: silver;
+  --tag-remove-bg: #ce0078;
+  --tag-remove-btn-color: white;
+  min-width: 0;
+  border: none;
+}
+.layer-class-input.tagify .tagify__tag {
+  margin-top: 0;
+}
+.layer-class-input.tagify .tagify__input {
+  display: none;
+}
+.layer-class-input.tagify .tagify__tag__removeBtn {
+  font-size: 9px;
+  margin-left: 4px;
+  cursor: pointer;
+}
+.layer-add-tag-btn {
+  color: #0052bf;
+  font: bold 1em/1.4 Arial;
+  border: 0;
+  background: none;
+  box-shadow: 0 0 0 2px inset currentColor;
+  border-radius: 50%;
+  width: 1.2em;
+  height: 1.2em;
+  cursor: pointer;
+  transition: 0.1s ease-out;
+}
+.layer-add-tag-btn:hover {
+  box-shadow: 0 0 0 4px inset currentColor;
+}
 .layer-status-tag {
   font-size: 11px;
   padding: 2px 4px;
diff --git a/app/frontend/static/js/layerViewController.js b/app/frontend/static/js/layerViewController.js
index 8f8f57b..0738dd2 100644
--- a/app/frontend/static/js/layerViewController.js
+++ b/app/frontend/static/js/layerViewController.js
@@ -10,9 +10,53 @@ class LayerViewController {
         this.stateManager = stateManager;
         this.layers = [];
         this.selectedLayerIds = [];
+        this.tagifyMap = new Map();
+        this.globalLabelPool = [];
         this.Utils = window.Utils || { dispatchCustomEvent: (n,d)=>document.dispatchEvent(new CustomEvent(n,{detail:d})) };
     }
 
+    async _refreshGlobalLabels() {
+        const projectId = this.stateManager && this.stateManager.getActiveProjectId && this.stateManager.getActiveProjectId();
+        if (!projectId || !window.apiClient) {
+            this.globalLabelPool = [];
+            return;
+        }
+        try {
+            const res = await window.apiClient.getProjectLabels(projectId);
+            if (res && Array.isArray(res.labels)) {
+                this.globalLabelPool = res.labels
+                    .flatMap(l => l.split(',').map(t => t.trim()))
+                    .filter(Boolean);
+            } else {
+                this.globalLabelPool = [];
+            }
+        } catch (e) {
+            this.globalLabelPool = [];
+        }
+    }
+
+    _gatherLabelPool() {
+        const set = new Set();
+        this.layers.forEach(l => {
+            if (l.classLabel) {
+                l.classLabel.split(',').forEach(t => {
+                    t = t.trim();
+                    if (t) set.add(t);
+                });
+            }
+        });
+        return Array.from(set);
+    }
+
+    _updateTagifyWhitelists() {
+        const pool = new Set([...this.globalLabelPool, ...this._gatherLabelPool()]);
+        const arr = Array.from(pool);
+        this.tagifyMap.forEach(t => {
+            t.settings.whitelist = arr;
+            if (t.dropdown) t.dropdown.refilter();
+        });
+    }
+
     setLayers(layers) {
         // Clone incoming array so external mutations (e.g., from ActiveImageState)
         // do not directly modify our internal list and cause double updates.
@@ -76,8 +120,11 @@ class LayerViewController {
         }
     }
 
-    render() {
+    async render() {
         if (!this.containerEl) return;
+        await this._refreshGlobalLabels();
+        this.tagifyMap.forEach(t => t.destroy());
+        this.tagifyMap.clear();
         this.containerEl.innerHTML = '';
         const listEl = document.createElement('ul');
         listEl.className = 'layer-list';
@@ -142,22 +189,20 @@ class LayerViewController {
             classInput.className = 'layer-class-input';
             classInput.type = 'text';
             classInput.placeholder = 'label';
-            classInput.value = layer.classLabel || '';
             classInput.title = 'Class label';
             classInput.addEventListener('mousedown', (e) => e.stopPropagation());
             classInput.addEventListener('click', (e) => e.stopPropagation());
-            classInput.addEventListener('keydown', (e) => {
-                if (e.key === 'Enter') {
-                    e.preventDefault();
-                    classInput.blur();
-                    classInput.dispatchEvent(new Event('change', { bubbles: true }));
-                }
-            });
-            classInput.addEventListener('change', (e) => {
-                e.stopPropagation();
-                layer.classLabel = classInput.value.trim();
-                this.Utils.dispatchCustomEvent('layer-class-changed', { layerId: layer.layerId, classLabel: layer.classLabel });
-            });
+
+            const addTagBtn = document.createElement('button');
+            addTagBtn.type = 'button';
+            addTagBtn.className = 'layer-add-tag-btn';
+            addTagBtn.textContent = '+';
+
+            const tagifyConfig = {
+                whitelist: Array.from(new Set([...this.globalLabelPool, ...this._gatherLabelPool()])),
+                dropdown: { maxItems: 20, enabled: 0, closeOnSelect: false },
+                editTags: { keepInvalid: false }
+            };
 
             const statusTag = document.createElement('span');
             statusTag.className = `layer-status-tag ${layer.status || ''}`;
@@ -175,6 +220,9 @@ class LayerViewController {
             });
 
             li.addEventListener('click', (e) => {
+                if (e.target.closest('.tagify__tag__removeBtn')) {
+                    return; // allow Tagify to handle deletion
+                }
                 const additive = e.shiftKey;
                 this.selectLayer(layer.layerId, additive);
             });
@@ -184,12 +232,38 @@ class LayerViewController {
             li.appendChild(colorInput);
             li.appendChild(nameInput);
             li.appendChild(classInput);
+            li.appendChild(addTagBtn);
             li.appendChild(statusTag);
             li.appendChild(deleteBtn);
+
+            const tagify = new Tagify(classInput, tagifyConfig);
+            if (layer.classLabel) {
+                tagify.addTags(layer.classLabel.split(',').map(t => t.trim()).filter(Boolean));
+            }
+            addTagBtn.addEventListener('click', (e) => {
+                e.stopPropagation();
+                tagify.addEmptyTag();
+            });
+            const updateFromTagify = () => {
+                layer.classLabel = tagify.value.map(t => t.value).join(',');
+                this.Utils.dispatchCustomEvent('layer-class-changed', { layerId: layer.layerId, classLabel: layer.classLabel });
+                this._updateTagifyWhitelists();
+            };
+            tagify.on('add', updateFromTagify);
+            tagify.on('remove', updateFromTagify);
+            tagify.on('edit:updated', (e) => {
+                if (e.detail && e.detail.data && !e.detail.data.value.trim()) {
+                    tagify.removeTag(e.detail.tag);
+                }
+                updateFromTagify();
+            });
+            this.tagifyMap.set(layer.layerId, tagify);
+
             listEl.appendChild(li);
         });
 
         this.containerEl.appendChild(listEl);
+        this._updateTagifyWhitelists();
     }
 }
 
diff --git a/docs/annotation_workflow_progress.md b/docs/annotation_workflow_progress.md
index 7f6d287..2b0bfdd 100644
--- a/docs/annotation_workflow_progress.md
+++ b/docs/annotation_workflow_progress.md
@@ -40,6 +40,19 @@ It will be updated as new sprints add functionality.
 - **Status Toggles**: The annotation view now has "Ready" and "Skip" switches to update image status, dispatching refresh events. Switches are automatically updated when a new image loads and disabled when no image is active.
 - **Unified Change Handler**: A new `onImageDataChange()` function synchronizes the layer view, caches and status toggles whenever image or layer data changes.
 - **Inline Layer Editing**: Mask name and label fields accept Enter to save changes without deselecting the text field, and edits trigger the unified change handler.
+- **Tagify Labels**: Class labels in the layer view appear as Tagify tags
+  directly on each layer. Each tag shows a small "×" remove button and the
+  "+" button adds new tags. Suggestions come from all labels used across the
+  project and update dynamically as tags change.
+- **Tagify Layout Fix**: Labels now appear in-line after the name field, fully
+  replacing the old text input without shifting the visibility toggle.
+- **Tag Removal Fix**: The "×" remove button stops event propagation without
+  cancelling the default Tagify behaviour so tags delete correctly and layer
+  selection is unaffected.
+- **Label Pool Parsing**: Suggestions split comma-separated labels returned by
+  the backend so autocompletion lists each label individually.
+- **Layer Click Handling Fix**: Clicking the remove icon no longer selects the
+  layer, ensuring tag deletions persist on reload.
 - **Layer Persistence**: Editing a mask's name or class now sends an update to the backend so changes are saved in the project database.
 - **Mask Edit Persistence**: Saving edits to a mask now updates its RLE data and status in the database so changes survive reloads.
 - **Color Persistence**: Layer colors are stored in the database, including the randomly assigned color when a layer is first created, and can be updated through the layer view.