diff --git a/electron/electron-env.d.ts b/electron/electron-env.d.ts
index 1d528cdc..c1046879 100644
--- a/electron/electron-env.d.ts
+++ b/electron/electron-env.d.ts
@@ -62,6 +62,17 @@ interface Window {
 			message?: string;
 			error?: string;
 		}>;
+		storeBackgroundImage: (
+			imageData: ArrayBuffer,
+			fileName: string,
+			mimeType?: string,
+		) => Promise<{
+			success: boolean;
+			path?: string;
+			url?: string;
+			message?: string;
+			error?: string;
+		}>;
 		getRecordedVideoPath: () => Promise<{
 			success: boolean;
 			path?: string;
@@ -81,7 +92,7 @@ interface Window {
 		openExternalUrl: (url: string) => Promise<{ success: boolean; error?: string }>;
 		pickExportSavePath: (
 			fileName: string,
-			exportFolder?: string,
+			options?: { autoSaveToDownloads?: boolean; exportFolder?: string },
 		) => Promise<{
 			success: boolean;
 			path?: string;
diff --git a/electron/ipc/handlers.ts b/electron/ipc/handlers.ts
index 431cda1f..ac1fca96 100644
--- a/electron/ipc/handlers.ts
+++ b/electron/ipc/handlers.ts
@@ -1,8 +1,9 @@
+import { randomUUID } from "node:crypto";
 import fs from "node:fs/promises";
 import { createRequire } from "node:module";
 import os from "node:os";
 import path from "node:path";
-import { fileURLToPath } from "node:url";
+import { fileURLToPath, pathToFileURL } from "node:url";
 
 const nodeRequire = createRequire(import.meta.url);
 
@@ -32,8 +33,11 @@ import { RECORDINGS_DIR } from "../main";
 
 const PROJECT_FILE_EXTENSION = "openscreen";
 const SHORTCUTS_FILE = path.join(app.getPath("userData"), "shortcuts.json");
+const BACKGROUND_IMAGES_DIR = path.join(app.getPath("userData"), "background-images");
 const RECORDING_SESSION_SUFFIX = ".session.json";
 const ALLOWED_IMPORT_VIDEO_EXTENSIONS = new Set([".webm", ".mp4", ".mov", ".avi", ".mkv"]);
+const ALLOWED_BACKGROUND_IMAGE_EXTENSIONS = new Set([".jpg", ".jpeg", ".png"]);
+const ALLOWED_BACKGROUND_IMAGE_TYPES = new Set(["image/jpeg", "image/png"]);
 
 /**
  * Paths explicitly approved by the user via file picker dialogs or project loads.
@@ -80,6 +84,41 @@ function hasAllowedImportVideoExtension(filePath: string): boolean {
 	return ALLOWED_IMPORT_VIDEO_EXTENSIONS.has(path.extname(filePath).toLowerCase());
 }
 
+function resolveBackgroundImageOutputPath(fileName: string, mimeType?: string): string {
+	const normalizedType = mimeType?.trim().toLowerCase() ?? "";
+	const extension = path.extname(fileName).toLowerCase();
+
+	if (normalizedType && !ALLOWED_BACKGROUND_IMAGE_TYPES.has(normalizedType)) {
+		throw new Error(`Unsupported background image type: ${normalizedType}`);
+	}
+
+	if (!ALLOWED_BACKGROUND_IMAGE_EXTENSIONS.has(extension)) {
+		throw new Error(`Unsupported background image extension: ${extension || "(none)"}`);
+	}
+
+	return path.join(BACKGROUND_IMAGES_DIR, `${randomUUID()}${extension}`);
+}
+
+async function resolveAvailableDownloadPath(fileName: string): Promise<string> {
+	const downloadsDir = app.getPath("downloads");
+	const extension = path.extname(fileName);
+	const baseName = path.basename(fileName, extension);
+	let targetPath = path.join(downloadsDir, fileName);
+	let counter = 1;
+
+	while (
+		await fs
+			.access(targetPath)
+			.then(() => true)
+			.catch(() => false)
+	) {
+		targetPath = path.join(downloadsDir, `${baseName} (${counter})${extension}`);
+		counter += 1;
+	}
+
+	return targetPath;
+}
+
 async function approveReadableVideoPath(
 	filePath?: string | null,
 	trustedDirs?: string[],
@@ -806,6 +845,30 @@ export function registerIpcHandlers(
 		}
 	});
 
+	ipcMain.handle(
+		"store-background-image",
+		async (_, imageData: ArrayBuffer, fileName: string, mimeType?: string) => {
+			try {
+				const targetPath = resolveBackgroundImageOutputPath(fileName, mimeType);
+				await fs.mkdir(path.dirname(targetPath), { recursive: true });
+				await fs.writeFile(targetPath, Buffer.from(imageData));
+				return {
+					success: true,
+					path: targetPath,
+					url: pathToFileURL(targetPath).toString(),
+					message: "Background image stored successfully",
+				};
+			} catch (error) {
+				console.error("Failed to store background image:", error);
+				return {
+					success: false,
+					message: "Failed to store background image",
+					error: String(error),
+				};
+			}
+		},
+	);
+
 	ipcMain.handle("get-recorded-video-path", async () => {
 		try {
 			if (currentRecordingSession?.screenVideoPath) {
@@ -1012,57 +1075,69 @@ export function registerIpcHandlers(
 	 * @returns Object with success status, optional file path, and error details.
 	 */
 
-	ipcMain.handle("pick-export-save-path", async (_, fileName: string, exportFolder?: string) => {
-		try {
-			const isGif = fileName.toLowerCase().endsWith(".gif");
-			const filters = isGif
-				? [{ name: mainT("dialogs", "fileDialogs.gifImage"), extensions: ["gif"] }]
-				: [{ name: mainT("dialogs", "fileDialogs.mp4Video"), extensions: ["mp4"] }];
-
-			// Prefer the user's last export folder if it still exists, otherwise fall
-			// back to ~/Downloads. Validation must happen here because the renderer
-			// can't stat the filesystem.
-			let defaultDir = app.getPath("downloads");
-			if (exportFolder) {
-				try {
-					const stats = await fs.stat(exportFolder);
-					if (stats.isDirectory()) {
-						defaultDir = exportFolder;
+	ipcMain.handle(
+		"pick-export-save-path",
+		async (
+			_,
+			fileName: string,
+			options?: { autoSaveToDownloads?: boolean; exportFolder?: string },
+		) => {
+			try {
+				const isGif = fileName.toLowerCase().endsWith(".gif");
+				const filters = isGif
+					? [{ name: mainT("dialogs", "fileDialogs.gifImage"), extensions: ["gif"] }]
+					: [{ name: mainT("dialogs", "fileDialogs.mp4Video"), extensions: ["mp4"] }];
+
+				if (options?.autoSaveToDownloads) {
+					return { success: true, path: await resolveAvailableDownloadPath(fileName) };
+				}
+
+				// Prefer the user's last export folder if it still exists, otherwise fall
+				// back to ~/Downloads. Validation must happen here because the renderer
+				// can't stat the filesystem.
+				const exportFolder = options?.exportFolder;
+				let defaultDir = app.getPath("downloads");
+				if (exportFolder) {
+					try {
+						const stats = await fs.stat(exportFolder);
+						if (stats.isDirectory()) {
+							defaultDir = exportFolder;
+						}
+					} catch (err) {
+						console.warn(
+							`Could not access remembered export folder "${exportFolder}", falling back to Downloads:`,
+							err,
+						);
 					}
-				} catch (err) {
-					console.warn(
-						`Could not access remembered export folder "${exportFolder}", falling back to Downloads:`,
-						err,
-					);
 				}
-			}
-			const dialogOptions = buildDialogOptions(
-				{
-					title: isGif
-						? mainT("dialogs", "fileDialogs.saveGif")
-						: mainT("dialogs", "fileDialogs.saveVideo"),
-					defaultPath: path.join(defaultDir, fileName),
-					filters,
-					properties: ["createDirectory", "showOverwriteConfirmation"],
-				},
-				getMainWindow(),
-			);
-			const result = await dialog.showSaveDialog(dialogOptions);
+				const dialogOptions = buildDialogOptions(
+					{
+						title: isGif
+							? mainT("dialogs", "fileDialogs.saveGif")
+							: mainT("dialogs", "fileDialogs.saveVideo"),
+						defaultPath: path.join(defaultDir, fileName),
+						filters,
+						properties: ["createDirectory", "showOverwriteConfirmation"],
+					},
+					getMainWindow(),
+				);
+				const result = await dialog.showSaveDialog(dialogOptions);
 
-			if (result.canceled || !result.filePath) {
-				return { success: false, canceled: true, message: "Export canceled" };
-			}
+				if (result.canceled || !result.filePath) {
+					return { success: false, canceled: true, message: "Export canceled" };
+				}
 
-			return { success: true, path: path.normalize(result.filePath) };
-		} catch (error) {
-			console.error("Failed to show save dialog:", error);
-			return {
-				success: false,
-				message: "Failed to show save dialog",
-				error: String(error),
-			};
-		}
-	});
+				return { success: true, path: path.normalize(result.filePath) };
+			} catch (error) {
+				console.error("Failed to show save dialog:", error);
+				return {
+					success: false,
+					message: "Failed to show save dialog",
+					error: String(error),
+				};
+			}
+		},
+	);
 
 	ipcMain.handle("write-export-to-path", async (_, videoData: ArrayBuffer, filePath: string) => {
 		try {
diff --git a/electron/preload.ts b/electron/preload.ts
index 5980b4ce..c6df8af2 100644
--- a/electron/preload.ts
+++ b/electron/preload.ts
@@ -53,6 +53,9 @@ contextBridge.exposeInMainWorld("electronAPI", {
 	storeRecordedSession: (payload: StoreRecordedSessionInput) => {
 		return ipcRenderer.invoke("store-recorded-session", payload);
 	},
+	storeBackgroundImage: (imageData: ArrayBuffer, fileName: string, mimeType?: string) => {
+		return ipcRenderer.invoke("store-background-image", imageData, fileName, mimeType);
+	},
 
 	getRecordedVideoPath: () => {
 		return ipcRenderer.invoke("get-recorded-video-path");
@@ -74,8 +77,11 @@ contextBridge.exposeInMainWorld("electronAPI", {
 	openExternalUrl: (url: string) => {
 		return ipcRenderer.invoke("open-external-url", url);
 	},
-	pickExportSavePath: (fileName: string, exportFolder?: string) => {
-		return ipcRenderer.invoke("pick-export-save-path", fileName, exportFolder);
+	pickExportSavePath: (
+		fileName: string,
+		options?: { autoSaveToDownloads?: boolean; exportFolder?: string },
+	) => {
+		return ipcRenderer.invoke("pick-export-save-path", fileName, options);
 	},
 	writeExportToPath: (videoData: ArrayBuffer, filePath: string) => {
 		return ipcRenderer.invoke("write-export-to-path", videoData, filePath);
diff --git a/src/components/video-editor/SettingsPanel.tsx b/src/components/video-editor/SettingsPanel.tsx
index 9ef66b14..2bf03c7c 100644
--- a/src/components/video-editor/SettingsPanel.tsx
+++ b/src/components/video-editor/SettingsPanel.tsx
@@ -50,6 +50,7 @@ import { getTestId } from "@/utils/getTestId";
 import ColorPicker from "../ui/color-picker";
 import { AnnotationSettingsPanel } from "./AnnotationSettingsPanel";
 import { BlurSettingsPanel } from "./BlurSettingsPanel";
+import { BACKGROUND_IMAGE_ACCEPT, isSupportedBackgroundImageType } from "./backgroundImageUpload";
 import { CropControl } from "./CropControl";
 import { KeyboardShortcutsHelp } from "./KeyboardShortcutsHelp";
 import type {
@@ -229,6 +230,8 @@ interface SettingsPanelProps {
 	cursorHighlightSupportsClicks?: boolean;
 	selected: string;
 	onWallpaperChange: (path: string) => void;
+	customImages?: string[];
+	onCustomImagesChange?: (images: string[]) => void;
 	selectedZoomDepth?: ZoomDepth | null;
 	onZoomDepthChange?: (depth: ZoomDepth) => void;
 	selectedZoomCustomScale?: number | null;
@@ -269,6 +272,8 @@ interface SettingsPanelProps {
 	// Export format settings
 	exportFormat?: ExportFormat;
 	onExportFormatChange?: (format: ExportFormat) => void;
+	autoSaveExportToDownloads?: boolean;
+	onAutoSaveExportToDownloadsChange?: (enabled: boolean) => void;
 	gifFrameRate?: GifFrameRate;
 	onGifFrameRateChange?: (rate: GifFrameRate) => void;
 	gifLoop?: boolean;
@@ -330,6 +335,8 @@ export function SettingsPanel({
 	cursorHighlightSupportsClicks = false,
 	selected,
 	onWallpaperChange,
+	customImages = [],
+	onCustomImagesChange,
 	selectedZoomDepth,
 	onZoomDepthChange,
 	selectedZoomCustomScale,
@@ -369,6 +376,8 @@ export function SettingsPanel({
 	onExportQualityChange,
 	exportFormat = "mp4",
 	onExportFormatChange,
+	autoSaveExportToDownloads = false,
+	onAutoSaveExportToDownloadsChange,
 	gifFrameRate = 15,
 	onGifFrameRateChange,
 	gifLoop = true,
@@ -412,7 +421,6 @@ export function SettingsPanel({
 	// `/wallpapers/wallpaperN.jpg` form in WALLPAPER_PATHS is what gets persisted
 	// on click — never the machine-specific file:// URL.
 	const wallpaperPreviewUrls = useMemo(() => WALLPAPER_PATHS.map(resolveImageWallpaperUrl), []);
-	const [customImages, setCustomImages] = useState<string[]>([]);
 	const fileInputRef = useRef<HTMLInputElement>(null);
 	const colorPalette = [
 		"#FF0000",
@@ -578,15 +586,13 @@ export function SettingsPanel({
 		}
 	};
 
-	const handleImageUpload = (event: React.ChangeEvent<HTMLInputElement>) => {
+	const handleImageUpload = async (event: React.ChangeEvent<HTMLInputElement>) => {
 		const files = event.target.files;
 		if (!files || files.length === 0) return;
 
 		const file = files[0];
 
-		// Validate file type - only allow JPG/JPEG
-		const validTypes = ["image/jpeg", "image/jpg"];
-		if (!validTypes.includes(file.type)) {
+		if (!isSupportedBackgroundImageType(file.type, file.name)) {
 			toast.error(t("imageUpload.invalidFileType"), {
 				description: t("imageUpload.jpgOnly"),
 			});
@@ -594,31 +600,31 @@ export function SettingsPanel({
 			return;
 		}
 
-		const reader = new FileReader();
-
-		reader.onload = (e) => {
-			const dataUrl = e.target?.result as string;
-			if (dataUrl) {
-				setCustomImages((prev) => [...prev, dataUrl]);
-				onWallpaperChange(dataUrl);
-				toast.success(t("imageUpload.uploadSuccess"));
+		try {
+			const imageData = await file.arrayBuffer();
+			const result = await window.electronAPI.storeBackgroundImage(imageData, file.name, file.type);
+			if (!result.success || !result.url) {
+				toast.error(t("imageUpload.failedToUpload"), {
+					description: result.message || result.error || t("imageUpload.errorReading"),
+				});
+				return;
 			}
-		};
-
-		reader.onerror = () => {
+			onCustomImagesChange?.([...customImages, result.url]);
+			onWallpaperChange(result.url);
+			toast.success(t("imageUpload.uploadSuccess"));
+		} catch {
 			toast.error(t("imageUpload.failedToUpload"), {
 				description: t("imageUpload.errorReading"),
 			});
-		};
-
-		reader.readAsDataURL(file);
-		// Reset input so the same file can be selected again
-		event.target.value = "";
+		} finally {
+			// Reset input so the same file can be selected again
+			event.target.value = "";
+		}
 	};
 
 	const handleRemoveCustomImage = (imageUrl: string, event: React.MouseEvent) => {
 		event.stopPropagation();
-		setCustomImages((prev) => prev.filter((img) => img !== imageUrl));
+		onCustomImagesChange?.(customImages.filter((img) => img !== imageUrl));
 		// If the removed image was selected, clear selection
 		if (selected === imageUrl) {
 			onWallpaperChange(WALLPAPER_PATHS[0]);
@@ -1629,7 +1635,7 @@ export function SettingsPanel({
 														type="file"
 														ref={fileInputRef}
 														onChange={handleImageUpload}
-														accept=".jpg,.jpeg,image/jpeg"
+														accept={BACKGROUND_IMAGE_ACCEPT}
 														className="hidden"
 													/>
 													<Button
@@ -1992,6 +1998,24 @@ export function SettingsPanel({
 							</div>
 						)}
 
+						<div className="mb-3 flex items-center justify-between gap-3 rounded-xl bg-white/[0.03] border border-white/5 p-3">
+							<div className="min-w-0">
+								<div id="autosave-downloads-label" className="text-xs font-medium text-slate-200">
+									{t("export.autoSaveToDownloads")}
+								</div>
+								<div id="autosave-downloads-desc" className="text-[10px] text-slate-500 mt-0.5">
+									{t("export.autoSaveToDownloadsDescription")}
+								</div>
+							</div>
+							<Switch
+								checked={autoSaveExportToDownloads}
+								onCheckedChange={onAutoSaveExportToDownloadsChange}
+								aria-labelledby="autosave-downloads-label"
+								aria-describedby="autosave-downloads-desc"
+								className="data-[state=checked]:bg-[#34B27B]"
+							/>
+						</div>
+
 						{unsavedExport && (
 							<Button
 								type="button"
diff --git a/src/components/video-editor/VideoEditor.tsx b/src/components/video-editor/VideoEditor.tsx
index e1f6a60d..7d7ee2c1 100644
--- a/src/components/video-editor/VideoEditor.tsx
+++ b/src/components/video-editor/VideoEditor.tsx
@@ -36,6 +36,7 @@ import {
 	loadUserPreferences,
 	parentDirectoryOf,
 	saveUserPreferences,
+	type UserPreferences,
 } from "@/lib/userPreferences";
 import { BackgroundLoadError } from "@/lib/wallpaper";
 import {
@@ -84,6 +85,25 @@ import {
 import { UnsavedChangesDialog } from "./UnsavedChangesDialog";
 import VideoPlayback, { VideoPlaybackRef } from "./VideoPlayback";
 
+function createDefaultEditorStateFromPreferences(prefs: UserPreferences) {
+	return {
+		...INITIAL_EDITOR_STATE,
+		wallpaper: prefs.wallpaper,
+		shadowIntensity: prefs.shadowIntensity,
+		showBlur: prefs.showBlur,
+		motionBlurAmount: prefs.motionBlurAmount,
+		borderRadius: prefs.borderRadius,
+		padding: prefs.padding,
+		cropRegion: prefs.cropRegion,
+		aspectRatio: prefs.aspectRatio,
+		webcamLayoutPreset: prefs.webcamLayoutPreset,
+		webcamMaskShape: prefs.webcamMaskShape,
+		webcamSizePreset: prefs.webcamSizePreset,
+		webcamPosition: prefs.webcamPosition,
+		cursorHighlight: prefs.cursorHighlight,
+	};
+}
+
 export default function VideoEditor() {
 	const {
 		state: editorState,
@@ -120,6 +140,7 @@ export default function VideoEditor() {
 	const [webcamVideoPath, setWebcamVideoPath] = useState<string | null>(null);
 	const [webcamVideoSourcePath, setWebcamVideoSourcePath] = useState<string | null>(null);
 	const [currentProjectPath, setCurrentProjectPath] = useState<string | null>(null);
+	const [customImages, setCustomImages] = useState<string[]>([]);
 	const [loading, setLoading] = useState(true);
 	const [error, setError] = useState<string | null>(null);
 	const [isPlaying, setIsPlaying] = useState(false);
@@ -143,6 +164,7 @@ export default function VideoEditor() {
 	const [showNewRecordingDialog, setShowNewRecordingDialog] = useState(false);
 	const [exportQuality, setExportQuality] = useState<ExportQuality>("good");
 	const [exportFormat, setExportFormat] = useState<ExportFormat>("mp4");
+	const [autoSaveExportToDownloads, setAutoSaveExportToDownloads] = useState(false);
 	const [gifFrameRate, setGifFrameRate] = useState<GifFrameRate>(15);
 	const [gifLoop, setGifLoop] = useState(true);
 	const [gifSizePreset, setGifSizePreset] = useState<GifSizePreset>("medium");
@@ -249,6 +271,7 @@ export default function VideoEditor() {
 				webcamMaskShape: normalizedEditor.webcamMaskShape,
 				webcamSizePreset: normalizedEditor.webcamSizePreset,
 				webcamPosition: normalizedEditor.webcamPosition,
+				cursorHighlight: normalizedEditor.cursorHighlight,
 			});
 			setExportQuality(normalizedEditor.exportQuality);
 			setExportFormat(normalizedEditor.exportFormat);
@@ -316,12 +339,14 @@ export default function VideoEditor() {
 			aspectRatio,
 			webcamLayoutPreset,
 			webcamMaskShape,
+			webcamSizePreset,
 			webcamPosition,
 			exportQuality,
 			exportFormat,
 			gifFrameRate,
 			gifLoop,
 			gifSizePreset,
+			cursorHighlight,
 		});
 	}, [
 		currentProjectMedia,
@@ -339,19 +364,35 @@ export default function VideoEditor() {
 		aspectRatio,
 		webcamLayoutPreset,
 		webcamMaskShape,
+		webcamSizePreset,
 		webcamPosition,
 		exportQuality,
 		exportFormat,
 		gifFrameRate,
 		gifLoop,
 		gifSizePreset,
+		cursorHighlight,
 	]);
 
 	const hasUnsavedChanges = hasProjectUnsavedChanges(currentProjectSnapshot, lastSavedSnapshot);
 
 	useEffect(() => {
 		async function loadInitialData() {
+			let shouldPersistPrefs = false;
+			const prefs = loadUserPreferences();
+			const defaultEditorState = createDefaultEditorStateFromPreferences(prefs);
+			const defaultProjectEditorState = {
+				...defaultEditorState,
+				exportQuality: prefs.exportQuality,
+				exportFormat: prefs.exportFormat,
+				gifFrameRate: prefs.gifFrameRate,
+				gifLoop: prefs.gifLoop,
+				gifSizePreset: prefs.gifSizePreset,
+			};
+
 			try {
+				setCustomImages(prefs.customImages);
+
 				const currentProjectResult = await window.electronAPI.loadCurrentProjectFile();
 				if (currentProjectResult.success && currentProjectResult.project) {
 					const restored = await applyLoadedProject(
@@ -359,6 +400,8 @@ export default function VideoEditor() {
 						currentProjectResult.path ?? null,
 					);
 					if (restored) {
+						setAutoSaveExportToDownloads(prefs.autoSaveExportToDownloads);
+						shouldPersistPrefs = true;
 						return;
 					}
 				}
@@ -375,6 +418,13 @@ export default function VideoEditor() {
 					setWebcamVideoSourcePath(webcamSourcePath);
 					setWebcamVideoPath(webcamSourcePath ? toFileUrl(webcamSourcePath) : null);
 					setCurrentProjectPath(null);
+					pushState(defaultEditorState);
+					setExportQuality(prefs.exportQuality);
+					setExportFormat(prefs.exportFormat);
+					setAutoSaveExportToDownloads(prefs.autoSaveExportToDownloads);
+					setGifFrameRate(prefs.gifFrameRate);
+					setGifLoop(prefs.gifLoop);
+					setGifSizePreset(prefs.gifSizePreset);
 					setLastSavedSnapshot(
 						createProjectSnapshot(
 							webcamSourcePath
@@ -383,9 +433,10 @@ export default function VideoEditor() {
 										webcamVideoPath: webcamSourcePath,
 									}
 								: { screenVideoPath: sourcePath },
-							INITIAL_EDITOR_STATE,
+							defaultProjectEditorState,
 						),
 					);
+					shouldPersistPrefs = true;
 					return;
 				}
 
@@ -397,43 +448,85 @@ export default function VideoEditor() {
 					setWebcamVideoSourcePath(null);
 					setWebcamVideoPath(null);
 					setCurrentProjectPath(null);
+					pushState(defaultEditorState);
+					setExportQuality(prefs.exportQuality);
+					setExportFormat(prefs.exportFormat);
+					setAutoSaveExportToDownloads(prefs.autoSaveExportToDownloads);
+					setGifFrameRate(prefs.gifFrameRate);
+					setGifLoop(prefs.gifLoop);
+					setGifSizePreset(prefs.gifSizePreset);
 					setLastSavedSnapshot(
-						createProjectSnapshot({ screenVideoPath: sourcePath }, INITIAL_EDITOR_STATE),
+						createProjectSnapshot({ screenVideoPath: sourcePath }, defaultProjectEditorState),
 					);
+					shouldPersistPrefs = true;
 				} else {
 					setError("No video to load. Please record or select a video.");
 				}
 			} catch (err) {
 				setError("Error loading video: " + String(err));
 			} finally {
+				if (shouldPersistPrefs) {
+					setPrefsHydrated(true);
+				}
 				setLoading(false);
 			}
 		}
 
 		loadInitialData();
-	}, [applyLoadedProject]);
+	}, [applyLoadedProject, pushState]);
 
 	// Track whether user preferences have been loaded to avoid
 	// overwriting saved prefs with defaults on the first render
 	const [prefsHydrated, setPrefsHydrated] = useState(false);
 
-	// Load persisted user preferences on mount (intentionally runs once)
-	useEffect(() => {
-		const prefs = loadUserPreferences();
-		updateState({
-			padding: prefs.padding,
-			aspectRatio: prefs.aspectRatio,
-		});
-		setExportQuality(prefs.exportQuality);
-		setExportFormat(prefs.exportFormat);
-		setPrefsHydrated(true);
-	}, [updateState]);
-
 	// Auto-save user preferences when settings change
 	useEffect(() => {
 		if (!prefsHydrated) return;
-		saveUserPreferences({ padding, aspectRatio, exportQuality, exportFormat });
-	}, [prefsHydrated, padding, aspectRatio, exportQuality, exportFormat]);
+		saveUserPreferences({
+			wallpaper,
+			customImages,
+			shadowIntensity,
+			showBlur,
+			motionBlurAmount,
+			borderRadius,
+			padding,
+			cropRegion,
+			aspectRatio,
+			webcamLayoutPreset,
+			webcamMaskShape,
+			webcamSizePreset,
+			webcamPosition,
+			exportQuality,
+			exportFormat,
+			autoSaveExportToDownloads,
+			gifFrameRate,
+			gifLoop,
+			gifSizePreset,
+			cursorHighlight,
+		});
+	}, [
+		prefsHydrated,
+		wallpaper,
+		customImages,
+		shadowIntensity,
+		showBlur,
+		motionBlurAmount,
+		borderRadius,
+		padding,
+		cropRegion,
+		aspectRatio,
+		webcamLayoutPreset,
+		webcamMaskShape,
+		webcamSizePreset,
+		webcamPosition,
+		exportQuality,
+		exportFormat,
+		autoSaveExportToDownloads,
+		gifFrameRate,
+		gifLoop,
+		gifSizePreset,
+		cursorHighlight,
+	]);
 
 	const saveProject = useCallback(
 		async (forceSaveAs: boolean) => {
@@ -1395,10 +1488,10 @@ export default function VideoEditor() {
 	const handleSaveUnsavedExport = useCallback(async () => {
 		if (!unsavedExport) return;
 		try {
-			const pickResult = await window.electronAPI.pickExportSavePath(
-				unsavedExport.fileName,
-				getExportFolder(),
-			);
+			const pickResult = await window.electronAPI.pickExportSavePath(unsavedExport.fileName, {
+				autoSaveToDownloads: autoSaveExportToDownloads,
+				exportFolder: getExportFolder(),
+			});
 			if (pickResult.canceled || !pickResult.success || !pickResult.path) {
 				toast.info("Export canceled");
 				return;
@@ -1417,7 +1510,7 @@ export default function VideoEditor() {
 			console.error("Error saving unsaved export:", error);
 			toast.error("Failed to save exported video");
 		}
-	}, [unsavedExport, handleExportSaved]);
+	}, [unsavedExport, handleExportSaved, autoSaveExportToDownloads]);
 
 	const handleExport = useCallback(
 		async (settings: ExportSettings) => {
@@ -1437,10 +1530,10 @@ export default function VideoEditor() {
 			// long-running export.
 			const isGifFormat = settings.format === "gif";
 			const targetFileName = `export-${Date.now()}.${isGifFormat ? "gif" : "mp4"}`;
-			const pickResult = await window.electronAPI.pickExportSavePath(
-				targetFileName,
-				getExportFolder(),
-			);
+			const pickResult = await window.electronAPI.pickExportSavePath(targetFileName, {
+				autoSaveToDownloads: autoSaveExportToDownloads,
+				exportFolder: getExportFolder(),
+			});
 			if (pickResult.canceled || !pickResult.success || !pickResult.path) {
 				setShowExportDialog(false);
 				return;
@@ -1721,6 +1814,7 @@ export default function VideoEditor() {
 			webcamSizePreset,
 			webcamPosition,
 			exportQuality,
+			autoSaveExportToDownloads,
 			handleExportSaved,
 			cursorTelemetry,
 			cursorClickTimestamps,
@@ -2098,6 +2192,8 @@ export default function VideoEditor() {
 									onExportQualityChange={setExportQuality}
 									exportFormat={exportFormat}
 									onExportFormatChange={setExportFormat}
+									autoSaveExportToDownloads={autoSaveExportToDownloads}
+									onAutoSaveExportToDownloadsChange={setAutoSaveExportToDownloads}
 									gifFrameRate={gifFrameRate}
 									onGifFrameRateChange={setGifFrameRate}
 									gifLoop={gifLoop}
diff --git a/src/components/video-editor/backgroundImageUpload.test.ts b/src/components/video-editor/backgroundImageUpload.test.ts
new file mode 100644
index 00000000..f4cecaf0
--- /dev/null
+++ b/src/components/video-editor/backgroundImageUpload.test.ts
@@ -0,0 +1,24 @@
+import { describe, expect, it } from "vitest";
+import { isSupportedBackgroundImageType } from "./backgroundImageUpload";
+
+describe("background image upload validation", () => {
+	it("accepts PNG images for custom backgrounds", () => {
+		expect(isSupportedBackgroundImageType("image/png", "generated-image.png")).toBe(true);
+	});
+
+	it("accepts PNG images by extension when the browser does not provide a MIME type", () => {
+		expect(isSupportedBackgroundImageType("", "generated-image.png")).toBe(true);
+	});
+
+	it("keeps rejecting non-image uploads", () => {
+		expect(isSupportedBackgroundImageType("text/plain", "notes.txt")).toBe(false);
+	});
+
+	it("rejects non-standard JPEG MIME aliases", () => {
+		expect(isSupportedBackgroundImageType("image/jpg", "photo.jpg")).toBe(false);
+	});
+
+	it("does not allow extension fallback for explicit unsupported MIME types", () => {
+		expect(isSupportedBackgroundImageType("text/plain", "notes.png")).toBe(false);
+	});
+});
diff --git a/src/components/video-editor/backgroundImageUpload.ts b/src/components/video-editor/backgroundImageUpload.ts
new file mode 100644
index 00000000..9e8dce66
--- /dev/null
+++ b/src/components/video-editor/backgroundImageUpload.ts
@@ -0,0 +1,20 @@
+const SUPPORTED_BACKGROUND_IMAGE_TYPES = new Set(["image/jpeg", "image/png"]);
+const SUPPORTED_BACKGROUND_IMAGE_EXTENSIONS = new Set([".jpg", ".jpeg", ".png"]);
+
+export const BACKGROUND_IMAGE_ACCEPT = ".jpg,.jpeg,.png,image/jpeg,image/png";
+
+export function isSupportedBackgroundImageType(type: string, fileName: string): boolean {
+	const normalizedType = type.trim().toLowerCase();
+	if (SUPPORTED_BACKGROUND_IMAGE_TYPES.has(normalizedType)) {
+		return true;
+	}
+
+	if (normalizedType) {
+		return false;
+	}
+
+	const lowerName = fileName.trim().toLowerCase();
+	return [...SUPPORTED_BACKGROUND_IMAGE_EXTENSIONS].some((extension) =>
+		lowerName.endsWith(extension),
+	);
+}
diff --git a/src/i18n/locales/ar/settings.json b/src/i18n/locales/ar/settings.json
index 2d250b19..29086172 100644
--- a/src/i18n/locales/ar/settings.json
+++ b/src/i18n/locales/ar/settings.json
@@ -99,7 +99,9 @@
 	"export": {
 		"videoButton": "تصدير الفيديو",
 		"gifButton": "تصدير GIF",
-		"chooseSaveLocation": "اختيار موقع الحفظ"
+		"chooseSaveLocation": "اختيار موقع الحفظ",
+		"autoSaveToDownloads": "الحفظ التلقائي في التنزيلات",
+		"autoSaveToDownloadsDescription": "تجاوز مربع حوار الحفظ بعد التصدير."
 	},
 	"links": {
 		"reportBug": "الإبلاغ عن خطأ",
@@ -107,7 +109,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "نوع ملف غير صالح",
-		"jpgOnly": "يرجى رفع ملف صورة JPG أو JPEG.",
+		"jpgOnly": "يرجى رفع ملف صورة JPG أو JPEG أو PNG.",
 		"uploadSuccess": "تم رفع الصورة المخصصة بنجاح!",
 		"failedToUpload": "فشل رفع الصورة",
 		"errorReading": "حدث خطأ أثناء قراءة الملف."
diff --git a/src/i18n/locales/en/settings.json b/src/i18n/locales/en/settings.json
index 3ec08194..c2b4d7c5 100644
--- a/src/i18n/locales/en/settings.json
+++ b/src/i18n/locales/en/settings.json
@@ -115,7 +115,9 @@
 	"export": {
 		"videoButton": "Export Video",
 		"gifButton": "Export GIF",
-		"chooseSaveLocation": "Choose Save Location"
+		"chooseSaveLocation": "Choose Save Location",
+		"autoSaveToDownloads": "Auto-save to Downloads",
+		"autoSaveToDownloadsDescription": "Skip the save dialog after export."
 	},
 	"links": {
 		"reportBug": "Report Bug",
@@ -123,7 +125,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "Invalid file type",
-		"jpgOnly": "Please upload a JPG or JPEG image file.",
+		"jpgOnly": "Please upload a JPG, JPEG, or PNG image file.",
 		"uploadSuccess": "Custom image uploaded successfully!",
 		"failedToUpload": "Failed to upload image",
 		"errorReading": "There was an error reading the file."
diff --git a/src/i18n/locales/es/settings.json b/src/i18n/locales/es/settings.json
index 20a9ec39..c0141c77 100644
--- a/src/i18n/locales/es/settings.json
+++ b/src/i18n/locales/es/settings.json
@@ -93,7 +93,9 @@
 	"export": {
 		"videoButton": "Exportar video",
 		"gifButton": "Exportar GIF",
-		"chooseSaveLocation": "Elegir ubicación de guardado"
+		"chooseSaveLocation": "Elegir ubicación de guardado",
+		"autoSaveToDownloads": "Guardar automáticamente en Descargas",
+		"autoSaveToDownloadsDescription": "Omitir el diálogo de guardado después de exportar."
 	},
 	"links": {
 		"reportBug": "Reportar error",
@@ -101,7 +103,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "Tipo de archivo no válido",
-		"jpgOnly": "Por favor sube un archivo de imagen JPG o JPEG.",
+		"jpgOnly": "Por favor sube un archivo de imagen JPG, JPEG o PNG.",
 		"uploadSuccess": "¡Imagen personalizada subida exitosamente!",
 		"failedToUpload": "Error al subir la imagen",
 		"errorReading": "Hubo un error al leer el archivo."
diff --git a/src/i18n/locales/fr/settings.json b/src/i18n/locales/fr/settings.json
index 66a6d74c..154414ba 100644
--- a/src/i18n/locales/fr/settings.json
+++ b/src/i18n/locales/fr/settings.json
@@ -100,7 +100,9 @@
 	"export": {
 		"videoButton": "Exporter la vidéo",
 		"gifButton": "Exporter le GIF",
-		"chooseSaveLocation": "Choisir l'emplacement d'enregistrement"
+		"chooseSaveLocation": "Choisir l'emplacement d'enregistrement",
+		"autoSaveToDownloads": "Enregistrer automatiquement dans Téléchargements",
+		"autoSaveToDownloadsDescription": "Ignorer la boîte de dialogue d'enregistrement après l'export."
 	},
 	"links": {
 		"reportBug": "Signaler un bug",
@@ -108,7 +110,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "Type de fichier invalide",
-		"jpgOnly": "Veuillez téléverser un fichier image JPG ou JPEG.",
+		"jpgOnly": "Veuillez téléverser un fichier image JPG, JPEG ou PNG.",
 		"uploadSuccess": "Image personnalisée téléversée avec succès !",
 		"failedToUpload": "Échec du téléversement de l'image",
 		"errorReading": "Une erreur s'est produite lors de la lecture du fichier."
diff --git a/src/i18n/locales/ja-JP/settings.json b/src/i18n/locales/ja-JP/settings.json
index 1ccc3815..5f17f578 100644
--- a/src/i18n/locales/ja-JP/settings.json
+++ b/src/i18n/locales/ja-JP/settings.json
@@ -93,7 +93,9 @@
 	"export": {
 		"videoButton": "動画をエクスポート",
 		"gifButton": "GIF をエクスポート",
-		"chooseSaveLocation": "保存場所を選択"
+		"chooseSaveLocation": "保存場所を選択",
+		"autoSaveToDownloads": "ダウンロードに自動保存",
+		"autoSaveToDownloadsDescription": "エクスポート後の保存ダイアログを省略します。"
 	},
 	"links": {
 		"reportBug": "バグを報告",
@@ -101,7 +103,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "無効なファイル形式",
-		"jpgOnly": "JPG または JPEG 画像ファイルを選択してください。",
+		"jpgOnly": "JPG、JPEG、または PNG 画像ファイルを選択してください。",
 		"uploadSuccess": "カスタム画像を読み込みました。",
 		"failedToUpload": "画像の読み込みに失敗しました",
 		"errorReading": "ファイルの読み取り中にエラーが発生しました。"
diff --git a/src/i18n/locales/ko-KR/settings.json b/src/i18n/locales/ko-KR/settings.json
index 268ba57c..7c6be470 100644
--- a/src/i18n/locales/ko-KR/settings.json
+++ b/src/i18n/locales/ko-KR/settings.json
@@ -93,7 +93,9 @@
 	"export": {
 		"videoButton": "비디오 내보내기",
 		"gifButton": "GIF 내보내기",
-		"chooseSaveLocation": "저장 위치 선택"
+		"chooseSaveLocation": "저장 위치 선택",
+		"autoSaveToDownloads": "다운로드에 자동 저장",
+		"autoSaveToDownloadsDescription": "내보낸 뒤 저장 대화상자를 건너뜁니다."
 	},
 	"links": {
 		"reportBug": "버그 신고",
@@ -101,7 +103,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "지원하지 않는 파일 형식입니다",
-		"jpgOnly": "JPG 또는 JPEG 이미지 파일을 업로드해 주세요.",
+		"jpgOnly": "JPG, JPEG 또는 PNG 이미지 파일을 업로드해 주세요.",
 		"uploadSuccess": "커스텀 이미지가 성공적으로 업로드되었습니다!",
 		"failedToUpload": "이미지 업로드에 실패했습니다",
 		"errorReading": "파일을 읽는 중 오류가 발생했습니다."
diff --git a/src/i18n/locales/tr/settings.json b/src/i18n/locales/tr/settings.json
index f6395582..b5cffaf5 100644
--- a/src/i18n/locales/tr/settings.json
+++ b/src/i18n/locales/tr/settings.json
@@ -93,7 +93,9 @@
 	"export": {
 		"videoButton": "Videoyu Dışa Aktar",
 		"gifButton": "GIF Olarak Dışa Aktar",
-		"chooseSaveLocation": "Kayıt Konumu Seç"
+		"chooseSaveLocation": "Kayıt Konumu Seç",
+		"autoSaveToDownloads": "İndirilenler'e otomatik kaydet",
+		"autoSaveToDownloadsDescription": "Dışa aktarmadan sonra kaydetme penceresini atla."
 	},
 	"links": {
 		"reportBug": "Hata Bildir",
@@ -101,7 +103,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "Geçersiz dosya türü",
-		"jpgOnly": "Lütfen bir JPG veya JPEG görüntü dosyası yükleyin.",
+		"jpgOnly": "Lütfen bir JPG, JPEG veya PNG görüntü dosyası yükleyin.",
 		"uploadSuccess": "Özel görüntü başarıyla yüklendi!",
 		"failedToUpload": "Görüntü yüklenemedi",
 		"errorReading": "Dosya okunurken bir hata oluştu."
diff --git a/src/i18n/locales/zh-CN/settings.json b/src/i18n/locales/zh-CN/settings.json
index ff157dcd..d31f5d3b 100644
--- a/src/i18n/locales/zh-CN/settings.json
+++ b/src/i18n/locales/zh-CN/settings.json
@@ -93,7 +93,9 @@
 	"export": {
 		"videoButton": "导出视频",
 		"gifButton": "导出 GIF",
-		"chooseSaveLocation": "选择保存位置"
+		"chooseSaveLocation": "选择保存位置",
+		"autoSaveToDownloads": "自动保存到下载文件夹",
+		"autoSaveToDownloadsDescription": "导出后跳过保存对话框。"
 	},
 	"links": {
 		"reportBug": "报告错误",
@@ -101,7 +103,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "无效的文件类型",
-		"jpgOnly": "请上传 JPG 或 JPEG 格式的图片文件。",
+		"jpgOnly": "请上传 JPG、JPEG 或 PNG 格式的图片文件。",
 		"uploadSuccess": "自定义图片上传成功！",
 		"failedToUpload": "上传图片失败",
 		"errorReading": "读取文件时出错。"
diff --git a/src/i18n/locales/zh-TW/settings.json b/src/i18n/locales/zh-TW/settings.json
index 50ca00cb..aee883d0 100644
--- a/src/i18n/locales/zh-TW/settings.json
+++ b/src/i18n/locales/zh-TW/settings.json
@@ -100,7 +100,9 @@
 	"export": {
 		"videoButton": "匯出影片",
 		"gifButton": "匯出 GIF",
-		"chooseSaveLocation": "選擇儲存位置"
+		"chooseSaveLocation": "選擇儲存位置",
+		"autoSaveToDownloads": "自動儲存到下載項目",
+		"autoSaveToDownloadsDescription": "匯出後略過儲存對話框。"
 	},
 	"links": {
 		"reportBug": "回報錯誤",
@@ -108,7 +110,7 @@
 	},
 	"imageUpload": {
 		"invalidFileType": "無效的檔案類型",
-		"jpgOnly": "請上傳 JPG 或 JPEG 格式的圖片檔案。",
+		"jpgOnly": "請上傳 JPG、JPEG 或 PNG 格式的圖片檔案。",
 		"uploadSuccess": "自訂圖片上傳成功！",
 		"failedToUpload": "上傳圖片失敗",
 		"errorReading": "讀取檔案時出錯。"
diff --git a/src/lib/userPreferences.browser.test.ts b/src/lib/userPreferences.browser.test.ts
new file mode 100644
index 00000000..4eeeff27
--- /dev/null
+++ b/src/lib/userPreferences.browser.test.ts
@@ -0,0 +1,39 @@
+import { beforeEach, describe, expect, it } from "vitest";
+import { loadUserPreferences, saveUserPreferences } from "./userPreferences";
+
+describe("userPreferences browser persistence", () => {
+	beforeEach(() => {
+		localStorage.clear();
+	});
+
+	it("round-trips uploaded backgrounds and visual defaults through browser localStorage", () => {
+		const uploadedBackground =
+			"file:///Users/me/Library/Application%20Support/Openscreen/background-images/bg.png";
+
+		saveUserPreferences({
+			wallpaper: uploadedBackground,
+			customImages: [uploadedBackground],
+			borderRadius: 31,
+			shadowIntensity: 0.62,
+			padding: 14,
+			aspectRatio: "4:3",
+			exportFormat: "gif",
+			autoSaveExportToDownloads: true,
+			gifFrameRate: 25,
+		});
+
+		const raw = localStorage.getItem("openscreen_user_preferences");
+		expect(raw).toContain(uploadedBackground);
+		expect(loadUserPreferences()).toMatchObject({
+			wallpaper: uploadedBackground,
+			customImages: [uploadedBackground],
+			borderRadius: 31,
+			shadowIntensity: 0.62,
+			padding: 14,
+			aspectRatio: "4:3",
+			exportFormat: "gif",
+			autoSaveExportToDownloads: true,
+			gifFrameRate: 25,
+		});
+	});
+});
diff --git a/src/lib/userPreferences.test.ts b/src/lib/userPreferences.test.ts
index 5ba9fceb..bf1636c3 100644
--- a/src/lib/userPreferences.test.ts
+++ b/src/lib/userPreferences.test.ts
@@ -1,5 +1,107 @@
-import { describe, expect, it } from "vitest";
-import { parentDirectoryOf } from "./userPreferences";
+import { beforeEach, describe, expect, it } from "vitest";
+import { loadUserPreferences, parentDirectoryOf, saveUserPreferences } from "./userPreferences";
+import { DEFAULT_WALLPAPER } from "./wallpaper";
+
+describe("userPreferences", () => {
+	beforeEach(() => {
+		localStorage.clear();
+	});
+
+	it("returns visual editor defaults when no preferences have been stored", () => {
+		expect(loadUserPreferences()).toMatchObject({
+			wallpaper: DEFAULT_WALLPAPER,
+			shadowIntensity: 0,
+			showBlur: false,
+			motionBlurAmount: 0,
+			borderRadius: 0,
+			padding: 50,
+			aspectRatio: "16:9",
+			customImages: [],
+			exportQuality: "good",
+			exportFormat: "mp4",
+			autoSaveExportToDownloads: false,
+			exportFolder: null,
+		});
+	});
+
+	it("persists visual editor defaults and uploaded background images", () => {
+		const uploadedBackground =
+			"file:///Users/me/Library/Application%20Support/Openscreen/background-images/bg.png";
+
+		saveUserPreferences({
+			wallpaper: uploadedBackground,
+			customImages: [uploadedBackground],
+			shadowIntensity: 0.45,
+			showBlur: true,
+			motionBlurAmount: 0.25,
+			borderRadius: 24,
+			padding: 18,
+			cropRegion: { x: 0.1, y: 0.2, width: 0.7, height: 0.6 },
+			aspectRatio: "16:10",
+			webcamLayoutPreset: "picture-in-picture",
+			webcamMaskShape: "rounded",
+			webcamSizePreset: 32,
+			webcamPosition: { cx: 0.8, cy: 0.25 },
+			exportQuality: "source",
+			exportFormat: "gif",
+			autoSaveExportToDownloads: true,
+			exportFolder: "/Users/me/Movies",
+			gifFrameRate: 30,
+			gifLoop: false,
+			gifSizePreset: "large",
+		});
+
+		expect(loadUserPreferences()).toMatchObject({
+			wallpaper: uploadedBackground,
+			customImages: [uploadedBackground],
+			shadowIntensity: 0.45,
+			showBlur: true,
+			motionBlurAmount: 0.25,
+			borderRadius: 24,
+			padding: 18,
+			cropRegion: { x: 0.1, y: 0.2, width: 0.7, height: 0.6 },
+			aspectRatio: "16:10",
+			webcamLayoutPreset: "picture-in-picture",
+			webcamMaskShape: "rounded",
+			webcamSizePreset: 32,
+			webcamPosition: { cx: 0.8, cy: 0.25 },
+			exportQuality: "source",
+			exportFormat: "gif",
+			autoSaveExportToDownloads: true,
+			exportFolder: "/Users/me/Movies",
+			gifFrameRate: 30,
+			gifLoop: false,
+			gifSizePreset: "large",
+		});
+	});
+
+	it("returns fresh object and array instances for defaults", () => {
+		const first = loadUserPreferences();
+		first.customImages.push("file:///tmp/mutated.png");
+		first.cropRegion.x = 0.5;
+		first.cursorHighlight.enabled = !first.cursorHighlight.enabled;
+
+		const second = loadUserPreferences();
+		expect(second.customImages).toEqual([]);
+		expect(second.cropRegion.x).toBe(0);
+		expect(second.cursorHighlight.enabled).toBe(false);
+	});
+
+	it("does not preserve legacy data URL background images in localStorage", () => {
+		const uploadedBackground =
+			"file:///Users/me/Library/Application%20Support/Openscreen/background-images/bg.png";
+		const legacyDataUrl = "data:image/png;base64,AAA";
+
+		saveUserPreferences({
+			wallpaper: legacyDataUrl,
+			customImages: [legacyDataUrl, uploadedBackground],
+		});
+
+		const prefs = loadUserPreferences();
+		expect(prefs.wallpaper).toBe(DEFAULT_WALLPAPER);
+		expect(prefs.customImages).toEqual([uploadedBackground]);
+	});
+});
 
 describe("parentDirectoryOf", () => {
 	it("returns the directory for a POSIX path", () => {
diff --git a/src/lib/userPreferences.ts b/src/lib/userPreferences.ts
index 5b7bc86d..da64fd5c 100644
--- a/src/lib/userPreferences.ts
+++ b/src/lib/userPreferences.ts
@@ -1,4 +1,21 @@
-import type { ExportFormat, ExportQuality } from "@/lib/exporter";
+import {
+	type CropRegion,
+	DEFAULT_CROP_REGION,
+	DEFAULT_WEBCAM_LAYOUT_PRESET,
+	DEFAULT_WEBCAM_MASK_SHAPE,
+	DEFAULT_WEBCAM_POSITION,
+	DEFAULT_WEBCAM_SIZE_PRESET,
+	type WebcamLayoutPreset,
+	type WebcamMaskShape,
+	type WebcamPosition,
+	type WebcamSizePreset,
+} from "@/components/video-editor/types";
+import {
+	type CursorHighlightConfig,
+	DEFAULT_CURSOR_HIGHLIGHT,
+} from "@/components/video-editor/videoPlayback/cursorHighlight";
+import type { ExportFormat, ExportQuality, GifFrameRate, GifSizePreset } from "@/lib/exporter";
+import { DEFAULT_WALLPAPER } from "@/lib/wallpaper";
 import type { AspectRatio } from "@/utils/aspectRatioUtils";
 
 const PREFS_KEY = "openscreen_user_preferences";
@@ -15,26 +32,84 @@ const VALID_ASPECT_RATIOS: readonly string[] = [
 ];
 
 export interface UserPreferences {
+	/** Default wallpaper/background for new edits. */
+	wallpaper: string;
+	/** Uploaded background images available in the background picker. */
+	customImages: string[];
+	/** Default shadow intensity for the screen layer. */
+	shadowIntensity: number;
+	/** Default blur toggle. */
+	showBlur: boolean;
+	/** Default motion blur amount. */
+	motionBlurAmount: number;
+	/** Default screen corner radius. */
+	borderRadius: number;
 	/** Default padding % */
 	padding: number;
+	/** Default crop region */
+	cropRegion: CropRegion;
 	/** Default aspect ratio */
 	aspectRatio: AspectRatio;
+	/** Default webcam layout mode */
+	webcamLayoutPreset: WebcamLayoutPreset;
+	/** Default webcam mask shape */
+	webcamMaskShape: WebcamMaskShape;
+	/** Default webcam size */
+	webcamSizePreset: WebcamSizePreset;
+	/** Default picture-in-picture webcam position */
+	webcamPosition: WebcamPosition | null;
 	/** Default export quality */
 	exportQuality: ExportQuality;
 	/** Default export format */
 	exportFormat: ExportFormat;
+	/** Save exports to Downloads without showing the OS save dialog. */
+	autoSaveExportToDownloads: boolean;
+	/** Default GIF frame rate */
+	gifFrameRate: GifFrameRate;
+	/** Default GIF loop setting */
+	gifLoop: boolean;
+	/** Default GIF size preset */
+	gifSizePreset: GifSizePreset;
+	/** Default cursor highlight settings */
+	cursorHighlight: CursorHighlightConfig;
 	/** Folder used for the most recent successful export, if any */
 	exportFolder: string | null;
 }
 
 const DEFAULT_PREFS: UserPreferences = {
+	wallpaper: DEFAULT_WALLPAPER,
+	customImages: [],
+	shadowIntensity: 0,
+	showBlur: false,
+	motionBlurAmount: 0,
+	borderRadius: 0,
 	padding: 50,
+	cropRegion: DEFAULT_CROP_REGION,
 	aspectRatio: "16:9",
+	webcamLayoutPreset: DEFAULT_WEBCAM_LAYOUT_PRESET,
+	webcamMaskShape: DEFAULT_WEBCAM_MASK_SHAPE,
+	webcamSizePreset: DEFAULT_WEBCAM_SIZE_PRESET,
+	webcamPosition: DEFAULT_WEBCAM_POSITION,
 	exportQuality: "good",
 	exportFormat: "mp4",
+	autoSaveExportToDownloads: false,
+	gifFrameRate: 15,
+	gifLoop: true,
+	gifSizePreset: "medium",
+	cursorHighlight: DEFAULT_CURSOR_HIGHLIGHT,
 	exportFolder: null,
 };
 
+function cloneDefaultPreferences(): UserPreferences {
+	return {
+		...DEFAULT_PREFS,
+		customImages: [...DEFAULT_PREFS.customImages],
+		cropRegion: { ...DEFAULT_PREFS.cropRegion },
+		webcamPosition: DEFAULT_PREFS.webcamPosition ? { ...DEFAULT_PREFS.webcamPosition } : null,
+		cursorHighlight: { ...DEFAULT_PREFS.cursorHighlight },
+	};
+}
+
 function safeJsonParse(text: string | null): Record<string, unknown> | null {
 	if (!text) return null;
 	try {
@@ -44,6 +119,96 @@ function safeJsonParse(text: string | null): Record<string, unknown> | null {
 	}
 }
 
+function finiteNumber(value: unknown): value is number {
+	return typeof value === "number" && Number.isFinite(value);
+}
+
+function clamp(value: number, min: number, max: number) {
+	return Math.min(max, Math.max(min, value));
+}
+
+function normalizeCropRegion(value: unknown): CropRegion {
+	if (!value || typeof value !== "object") return { ...DEFAULT_PREFS.cropRegion };
+	const crop = value as Partial<CropRegion>;
+	const x = finiteNumber(crop.x) ? clamp(crop.x, 0, 1) : DEFAULT_PREFS.cropRegion.x;
+	const y = finiteNumber(crop.y) ? clamp(crop.y, 0, 1) : DEFAULT_PREFS.cropRegion.y;
+	const width = finiteNumber(crop.width)
+		? clamp(crop.width, 0.01, 1 - x)
+		: DEFAULT_PREFS.cropRegion.width;
+	const height = finiteNumber(crop.height)
+		? clamp(crop.height, 0.01, 1 - y)
+		: DEFAULT_PREFS.cropRegion.height;
+	return { x, y, width, height };
+}
+
+function normalizeWebcamPosition(value: unknown): WebcamPosition | null {
+	if (!value || typeof value !== "object") {
+		return DEFAULT_PREFS.webcamPosition ? { ...DEFAULT_PREFS.webcamPosition } : null;
+	}
+	const position = value as Partial<WebcamPosition>;
+	return finiteNumber(position.cx) && finiteNumber(position.cy)
+		? { cx: clamp(position.cx, 0, 1), cy: clamp(position.cy, 0, 1) }
+		: DEFAULT_PREFS.webcamPosition
+			? { ...DEFAULT_PREFS.webcamPosition }
+			: null;
+}
+
+function normalizeCursorHighlight(value: unknown): CursorHighlightConfig {
+	if (!value || typeof value !== "object") return { ...DEFAULT_PREFS.cursorHighlight };
+	const highlight = value as Partial<CursorHighlightConfig>;
+	return {
+		enabled:
+			typeof highlight.enabled === "boolean"
+				? highlight.enabled
+				: DEFAULT_PREFS.cursorHighlight.enabled,
+		style:
+			highlight.style === "dot" || highlight.style === "ring"
+				? highlight.style
+				: DEFAULT_PREFS.cursorHighlight.style,
+		sizePx: finiteNumber(highlight.sizePx)
+			? clamp(highlight.sizePx, 10, 36)
+			: DEFAULT_PREFS.cursorHighlight.sizePx,
+		color:
+			typeof highlight.color === "string" &&
+			/^#([0-9a-fA-F]{3}|[0-9a-fA-F]{6})$/.test(highlight.color)
+				? highlight.color
+				: DEFAULT_PREFS.cursorHighlight.color,
+		opacity: finiteNumber(highlight.opacity)
+			? clamp(highlight.opacity, 0, 1)
+			: DEFAULT_PREFS.cursorHighlight.opacity,
+		onlyOnClicks:
+			typeof highlight.onlyOnClicks === "boolean"
+				? highlight.onlyOnClicks
+				: DEFAULT_PREFS.cursorHighlight.onlyOnClicks,
+		clickEmphasisDurationMs:
+			finiteNumber(highlight.clickEmphasisDurationMs) && highlight.clickEmphasisDurationMs > 0
+				? highlight.clickEmphasisDurationMs
+				: DEFAULT_PREFS.cursorHighlight.clickEmphasisDurationMs,
+		offsetXNorm: finiteNumber(highlight.offsetXNorm)
+			? clamp(highlight.offsetXNorm, -1, 1)
+			: DEFAULT_PREFS.cursorHighlight.offsetXNorm,
+		offsetYNorm: finiteNumber(highlight.offsetYNorm)
+			? clamp(highlight.offsetYNorm, -1, 1)
+			: DEFAULT_PREFS.cursorHighlight.offsetYNorm,
+	};
+}
+
+function isPersistableBackgroundReference(value: string): boolean {
+	return /^(file:\/\/|https?:\/\/)/.test(value) || value.startsWith("/wallpapers/");
+}
+
+function normalizeCustomImages(value: unknown): string[] {
+	if (!Array.isArray(value)) return [...DEFAULT_PREFS.customImages];
+	return Array.from(
+		new Set(
+			value.filter(
+				(item): item is string =>
+					typeof item === "string" && isPersistableBackgroundReference(item),
+			),
+		),
+	).slice(0, 20);
+}
+
 /**
  * Load persisted user preferences from localStorage.
  * Returns defaults for any missing or invalid fields.
@@ -53,22 +218,55 @@ export function loadUserPreferences(): UserPreferences {
 	try {
 		raw = safeJsonParse(localStorage.getItem(PREFS_KEY));
 	} catch {
-		return { ...DEFAULT_PREFS };
+		return cloneDefaultPreferences();
 	}
-	if (!raw || typeof raw !== "object") return { ...DEFAULT_PREFS };
+	if (!raw || typeof raw !== "object") return cloneDefaultPreferences();
 
 	return {
+		wallpaper:
+			typeof raw.wallpaper === "string" &&
+			raw.wallpaper.trim() &&
+			isPersistableBackgroundReference(raw.wallpaper)
+				? raw.wallpaper
+				: DEFAULT_PREFS.wallpaper,
+		customImages: normalizeCustomImages(raw.customImages),
+		shadowIntensity: finiteNumber(raw.shadowIntensity)
+			? clamp(raw.shadowIntensity, 0, 1)
+			: DEFAULT_PREFS.shadowIntensity,
+		showBlur: typeof raw.showBlur === "boolean" ? raw.showBlur : DEFAULT_PREFS.showBlur,
+		motionBlurAmount: finiteNumber(raw.motionBlurAmount)
+			? clamp(raw.motionBlurAmount, 0, 1)
+			: DEFAULT_PREFS.motionBlurAmount,
+		borderRadius: finiteNumber(raw.borderRadius)
+			? Math.max(0, raw.borderRadius)
+			: DEFAULT_PREFS.borderRadius,
 		padding:
-			typeof raw.padding === "number" &&
-			Number.isFinite(raw.padding) &&
-			raw.padding >= 0 &&
-			raw.padding <= 100
+			finiteNumber(raw.padding) && raw.padding >= 0 && raw.padding <= 100
 				? raw.padding
 				: DEFAULT_PREFS.padding,
+		cropRegion: normalizeCropRegion(raw.cropRegion),
 		aspectRatio:
 			typeof raw.aspectRatio === "string" && VALID_ASPECT_RATIOS.includes(raw.aspectRatio)
 				? (raw.aspectRatio as AspectRatio)
 				: DEFAULT_PREFS.aspectRatio,
+		webcamLayoutPreset:
+			raw.webcamLayoutPreset === "picture-in-picture" ||
+			raw.webcamLayoutPreset === "vertical-stack" ||
+			raw.webcamLayoutPreset === "dual-frame"
+				? raw.webcamLayoutPreset
+				: DEFAULT_PREFS.webcamLayoutPreset,
+		webcamMaskShape:
+			raw.webcamMaskShape === "rectangle" ||
+			raw.webcamMaskShape === "circle" ||
+			raw.webcamMaskShape === "square" ||
+			raw.webcamMaskShape === "rounded"
+				? raw.webcamMaskShape
+				: DEFAULT_PREFS.webcamMaskShape,
+		webcamSizePreset:
+			finiteNumber(raw.webcamSizePreset) && raw.webcamSizePreset >= 10 && raw.webcamSizePreset <= 50
+				? raw.webcamSizePreset
+				: DEFAULT_PREFS.webcamSizePreset,
+		webcamPosition: normalizeWebcamPosition(raw.webcamPosition),
 		exportQuality:
 			raw.exportQuality === "medium" ||
 			raw.exportQuality === "good" ||
@@ -79,6 +277,25 @@ export function loadUserPreferences(): UserPreferences {
 			raw.exportFormat === "gif" || raw.exportFormat === "mp4"
 				? (raw.exportFormat as ExportFormat)
 				: DEFAULT_PREFS.exportFormat,
+		autoSaveExportToDownloads:
+			typeof raw.autoSaveExportToDownloads === "boolean"
+				? raw.autoSaveExportToDownloads
+				: DEFAULT_PREFS.autoSaveExportToDownloads,
+		gifFrameRate:
+			raw.gifFrameRate === 15 ||
+			raw.gifFrameRate === 20 ||
+			raw.gifFrameRate === 25 ||
+			raw.gifFrameRate === 30
+				? raw.gifFrameRate
+				: DEFAULT_PREFS.gifFrameRate,
+		gifLoop: typeof raw.gifLoop === "boolean" ? raw.gifLoop : DEFAULT_PREFS.gifLoop,
+		gifSizePreset:
+			raw.gifSizePreset === "medium" ||
+			raw.gifSizePreset === "large" ||
+			raw.gifSizePreset === "original"
+				? raw.gifSizePreset
+				: DEFAULT_PREFS.gifSizePreset,
+		cursorHighlight: normalizeCursorHighlight(raw.cursorHighlight),
 		exportFolder:
 			typeof raw.exportFolder === "string" && raw.exportFolder.length > 0
 				? raw.exportFolder