diff --git a/frontend/public/locales/en-GB/translation.toml b/frontend/public/locales/en-GB/translation.toml
index 57e109eb56..df41a29913 100644
--- a/frontend/public/locales/en-GB/translation.toml
+++ b/frontend/public/locales/en-GB/translation.toml
@@ -7384,6 +7384,7 @@ automation = "Automation"
 automationSaved = "Automation saved"
 createFolder = "Create Folder"
 stepsSaved = "Steps saved — click Create Folder to finish"
+automationRequired = "Add at least one configured step before saving."
 color = "Accent color"
 createTitle = "New Watch Folder"
 description = "Description"
diff --git a/frontend/src/core/components/smartFolders/SmartFolderHomePage.tsx b/frontend/src/core/components/smartFolders/SmartFolderHomePage.tsx
index b315d163a5..7e77881326 100644
--- a/frontend/src/core/components/smartFolders/SmartFolderHomePage.tsx
+++ b/frontend/src/core/components/smartFolders/SmartFolderHomePage.tsx
@@ -6,6 +6,7 @@ import EditIcon from '@mui/icons-material/Edit';
 import DeleteOutlineIcon from '@mui/icons-material/DeleteOutline';
 import ChevronRightIcon from '@mui/icons-material/ChevronRight';
 import InfoOutlinedIcon from '@mui/icons-material/InfoOutlined';
+import CloseIcon from '@mui/icons-material/Close';
 import FolderPlusIcon from '@mui/icons-material/CreateNewFolder';
 import PauseCircleOutlineIcon from '@mui/icons-material/PauseCircleOutline';
 import PlayCircleOutlineIcon from '@mui/icons-material/PlayCircleOutline';
@@ -348,6 +349,10 @@ function FolderCard({
 function HowItWorks() {
   const { t } = useTranslation();
 
+  const [dismissed, setDismissed] = useState(() => sessionStorage.getItem('wf_howItWorks_dismissed') === '1');
+
+  if (dismissed) return null;
+
   const steps = [
     {
       n: '1',
@@ -376,11 +381,22 @@ function HowItWorks() {
         backgroundColor: 'var(--bg-toolbar)',
       }}
     >
-      <Group gap="xs" mb="sm">
-        <InfoOutlinedIcon style={{ fontSize: '1rem', color: 'var(--mantine-color-blue-filled)' }} />
-        <Text fw={600} size="xs">
-          {t('smartFolders.howItWorks.title', 'How Watch Folders work')}
-        </Text>
+      <Group gap="xs" mb="sm" justify="space-between">
+        <Group gap="xs">
+          <InfoOutlinedIcon style={{ fontSize: '1rem', color: 'var(--mantine-color-blue-filled)' }} />
+          <Text fw={600} size="xs">
+            {t('smartFolders.howItWorks.title', 'How Watch Folders work')}
+          </Text>
+        </Group>
+        <ActionIcon
+          size="xs"
+          variant="subtle"
+          color="gray"
+          onClick={() => { sessionStorage.setItem('wf_howItWorks_dismissed', '1'); setDismissed(true); }}
+          aria-label="Dismiss"
+        >
+          <CloseIcon style={{ fontSize: '0.75rem', color: 'var(--mantine-color-text)' }} />
+        </ActionIcon>
       </Group>
       <Group gap="xl" wrap="nowrap" align="flex-start">
         {steps.map((step) => (
@@ -632,25 +648,7 @@ export function SmartFolderHomePage() {
             <EmptyState onCreate={() => setCreateModalOpen(true)} />
           ) : (
             <Stack gap="md">
-              {folders.map((folder) => {
-                const status = statuses[folder.id] ?? 'idle';
-                const isProcessing =
-                  processingFolderIds.has(folder.id) || status === 'processing';
-                return (
-                  <FolderCard
-                    key={folder.id}
-                    folder={folder}
-                    status={status}
-                    isProcessing={isProcessing}
-                    onEdit={handleEdit}
-                    onDelete={setDeleteTarget}
-                    onOpen={navigateToFolder}
-                    onDropFiles={processFiles}
-                    onDropSidebarFile={handleDropSidebarFile}
-                    onTogglePause={handleTogglePause}
-                  />
-                );
-              })}
+              <HowItWorks />
 
               {/* Add another prompt */}
               <Box
@@ -688,7 +686,25 @@ export function SmartFolderHomePage() {
                 </Text>
               </Box>
 
-              <HowItWorks />
+              {folders.map((folder) => {
+                const status = statuses[folder.id] ?? 'idle';
+                const isProcessing =
+                  processingFolderIds.has(folder.id) || status === 'processing';
+                return (
+                  <FolderCard
+                    key={folder.id}
+                    folder={folder}
+                    status={status}
+                    isProcessing={isProcessing}
+                    onEdit={handleEdit}
+                    onDelete={setDeleteTarget}
+                    onOpen={navigateToFolder}
+                    onDropFiles={processFiles}
+                    onDropSidebarFile={handleDropSidebarFile}
+                    onTogglePause={handleTogglePause}
+                  />
+                );
+              })}
             </Stack>
           )}
         </Box>
diff --git a/frontend/src/core/components/smartFolders/SmartFolderManagementModal.tsx b/frontend/src/core/components/smartFolders/SmartFolderManagementModal.tsx
index eafefa477a..e04613cbd5 100644
--- a/frontend/src/core/components/smartFolders/SmartFolderManagementModal.tsx
+++ b/frontend/src/core/components/smartFolders/SmartFolderManagementModal.tsx
@@ -7,9 +7,7 @@ import {
   TextInput,
   Textarea,
   Divider,
-  ColorSwatch,
-  SimpleGrid,
-  Text,
+  ColorInput,
 } from '@mantine/core';
 import { useTranslation } from 'react-i18next';
 import { SmartFolder } from '@app/types/smartFolders';
@@ -19,7 +17,7 @@ import AutomationCreation from '@app/components/tools/automate/AutomationCreatio
 import { useToolWorkflow } from '@app/contexts/ToolWorkflowContext';
 import { smartFolderStorage } from '@app/services/smartFolderStorage';
 
-const ACCENT_COLORS = [
+const ACCENT_SWATCHES = [
   '#3b82f6', '#0ea5e9', '#14b8a6', '#22c55e',
   '#f97316', '#ef4444', '#9333ea', '#ec4899',
   '#6366f1', '#eab308', '#64748b', '#0f172a',
@@ -48,9 +46,9 @@ export function SmartFolderManagementModal({
   const [description, setDescription] = useState(editFolder?.description ?? '');
   const [icon, setIcon] = useState(editFolder?.icon ?? 'FolderIcon');
   const [accentColor, setAccentColor] = useState(editFolder?.accentColor ?? '#3b82f6');
-  const [customColor, setCustomColor] = useState('');
   const [saving, setSaving] = useState(false);
   const [nameError, setNameError] = useState('');
+  const [automationError, setAutomationError] = useState('');
 
   // AutomationCreation exposes its save function via this ref
   const automationSaveTrigger = useRef<(() => void) | null>(null);
@@ -60,8 +58,9 @@ export function SmartFolderManagementModal({
     setDescription(editFolder?.description ?? '');
     setIcon(editFolder?.icon ?? 'FolderIcon');
     setAccentColor(editFolder?.accentColor ?? '#3b82f6');
-    setCustomColor('');
+
     setNameError('');
+    setAutomationError('');
     setSaving(false);
   }, [editFolder]);
 
@@ -116,6 +115,7 @@ export function SmartFolderManagementModal({
       setNameError(t('smartFolders.modal.nameTooLong', 'Folder name must be 50 characters or less'));
       return;
     }
+    setAutomationError('');
     setSaving(true);
     // Trigger automation save; onComplete handles the rest
     automationSaveTrigger.current?.();
@@ -161,34 +161,15 @@ export function SmartFolderManagementModal({
             size="sm"
           />
 
-          <Stack gap="xs">
-            <Text size="sm" fw={600}>{t('smartFolders.modal.color', 'Accent color')}</Text>
-            <Group gap="xs">
-              <SimpleGrid cols={12} spacing={4}>
-                {ACCENT_COLORS.map((color) => (
-                  <ColorSwatch
-                    key={color}
-                    color={color}
-                    size={20}
-                    style={{ cursor: 'pointer', outline: accentColor === color ? `2px solid ${color}` : 'none', outlineOffset: 2 }}
-                    onClick={() => setAccentColor(color)}
-                  />
-                ))}
-              </SimpleGrid>
-              <TextInput
-                placeholder="#hex"
-                value={customColor}
-                onChange={(e) => {
-                  setCustomColor(e.currentTarget.value);
-                  if (/^#[0-9a-fA-F]{6}$/.test(e.currentTarget.value)) {
-                    setAccentColor(e.currentTarget.value);
-                  }
-                }}
-                size="xs"
-                style={{ width: '5.5rem' }}
-              />
-            </Group>
-          </Stack>
+          <ColorInput
+            label={t('smartFolders.modal.color', 'Accent color')}
+            value={accentColor}
+            onChange={setAccentColor}
+            format="hex"
+            swatches={ACCENT_SWATCHES}
+            size="sm"
+            popoverProps={{ withinPortal: true }}
+          />
         </Stack>
 
         <Divider label={t('smartFolders.modal.automation', 'Automation')} labelPosition="left" />
@@ -198,11 +179,15 @@ export function SmartFolderManagementModal({
           existingAutomation={existingAutomation ?? undefined}
           onBack={handleClose}
           onComplete={handleAutomationComplete}
+          onSaveFailed={() => { setSaving(false); setAutomationError(t('smartFolders.modal.automationRequired', 'Add at least one configured step before saving.')); }}
           toolRegistry={toolRegistry}
           hideMetadata
           nameOverride={name.trim() || 'Watch Folder Automation'}
           saveTriggerRef={automationSaveTrigger}
         />
+        {automationError && (
+          <Text size="xs" c="red">{automationError}</Text>
+        )}
 
         <Divider />
 
diff --git a/frontend/src/core/components/smartFolders/WatchFolderFileList.tsx b/frontend/src/core/components/smartFolders/WatchFolderFileList.tsx
index 9f36811e80..c05fcf8814 100644
--- a/frontend/src/core/components/smartFolders/WatchFolderFileList.tsx
+++ b/frontend/src/core/components/smartFolders/WatchFolderFileList.tsx
@@ -643,9 +643,14 @@ export function WatchFolderFileList({ files, folderId, onSendToFolder, onNavigat
       <ScrollArea style={{ flex: 1, minHeight: 0 }}>
         <Box style={{ padding: '0.25rem 0' }}>
           {files.length === 0 ? (
-            <Text size="xs" c="dimmed" ta="center" py="xl" px="sm">
-              {t('smartFolders.fileList.empty', 'No files yet')}
-            </Text>
+            <Box py="xl" px="sm" style={{ display: 'flex', flexDirection: 'column', alignItems: 'center', gap: '0.5rem' }}>
+              <Text size="xs" c="dimmed" ta="center">
+                {t('smartFolders.fileList.empty', 'No files yet')}
+              </Text>
+              <Button size="xs" variant="light" leftSection={<AddIcon style={{ fontSize: '0.875rem' }} />} onClick={handleUploadClick}>
+                {t('smartFolders.fileList.uploadFiles', 'Upload PDFs')}
+              </Button>
+            </Box>
           ) : processedFiles.length === 0 ? (
             <Text size="xs" c="dimmed" ta="center" py="md" px="sm">
               {search ? t('smartFolders.fileList.noResults', 'No files match your search') : t('smartFolders.fileList.noneInFilter', 'No files in this category')}
diff --git a/frontend/src/core/components/tools/automate/AutomationCreation.tsx b/frontend/src/core/components/tools/automate/AutomationCreation.tsx
index 2293951215..b501aab569 100644
--- a/frontend/src/core/components/tools/automate/AutomationCreation.tsx
+++ b/frontend/src/core/components/tools/automate/AutomationCreation.tsx
@@ -31,9 +31,10 @@ interface AutomationCreationProps {
   hideMetadata?: boolean;
   nameOverride?: string;
   saveTriggerRef?: React.MutableRefObject<(() => void) | null>;
+  onSaveFailed?: () => void;
 }
 
-export default function AutomationCreation({ mode, existingAutomation, onBack, onComplete, toolRegistry, hideMetadata = false, nameOverride, saveTriggerRef }: AutomationCreationProps) {
+export default function AutomationCreation({ mode, existingAutomation, onBack, onComplete, toolRegistry, hideMetadata = false, nameOverride, saveTriggerRef, onSaveFailed }: AutomationCreationProps) {
   const { t } = useTranslation();
 
   const {
@@ -104,7 +105,7 @@ export default function AutomationCreation({ mode, existingAutomation, onBack, o
   };
 
   const saveAutomation = async () => {
-    if (!canSave()) return;
+    if (!canSave()) { onSaveFailed?.(); return; }
 
     const automationData = {
       name: effectiveName.trim(),