diff --git a/DynamicIsland/ContentView.swift b/DynamicIsland/ContentView.swift
index 24b6ce7..c8059cd 100644
--- a/DynamicIsland/ContentView.swift
+++ b/DynamicIsland/ContentView.swift
@@ -52,6 +52,7 @@ struct ContentView: View {
     @ObservedObject var capsLockManager = CapsLockManager.shared
     @ObservedObject var extensionLiveActivityManager = ExtensionLiveActivityManager.shared
     @ObservedObject var extensionNotchExperienceManager = ExtensionNotchExperienceManager.shared
+    @ObservedObject var localSendService = LocalSendService.shared
     @State private var downloadManager = DownloadManager.shared
     
     @Default(.enableStatsFeature) var enableStatsFeature
@@ -293,6 +294,19 @@ struct ContentView: View {
     private var shouldUseHiddenEdgeHoverPolling: Bool {
         shouldHideUntilHover && !lockScreenManager.isLocked
     }
+    
+    /// Whether the LocalSend live activity should be shown
+    private var localSendLiveActivityActive: Bool {
+        localSendService.isSending || 
+        localSendService.transferState == .completed ||
+        isLocalSendFailedOrRejected
+    }
+    
+    private var isLocalSendFailedOrRejected: Bool {
+        if case .failed = localSendService.transferState { return true }
+        if case .rejected = localSendService.transferState { return true }
+        return false
+    }
 
     /// Pill shape for Dynamic Island mode with animated corner radius transitions.
     private var currentPillShape: DynamicIslandPillShape {
@@ -738,6 +752,9 @@ struct ContentView: View {
                       } else if (!coordinator.expandingView.show || coordinator.expandingView.type == .download) && vm.notchState == .closed && downloadManager.isDownloading && Defaults[.enableDownloadListener] && !vm.hideOnClosed {
                           DownloadLiveActivity()
                               .transition(.blurReplace.animation(.interactiveSpring(dampingFraction: 1.2)))
+                      } else if !coordinator.expandingView.show && vm.notchState == .closed && localSendLiveActivityActive && !vm.hideOnClosed {
+                          LocalSendLiveActivity()
+                              .transition(.blurReplace.animation(.interactiveSpring(dampingFraction: 1.2)))
                       } else if (!coordinator.expandingView.show || coordinator.expandingView.type == .doNotDisturb) && vm.notchState == .closed && Defaults[.enableDoNotDisturbDetection] && Defaults[.showDoNotDisturbIndicator] && (doNotDisturbManager.isDoNotDisturbActive || doNotDisturbManager.isFocusToastDismissing) && !vm.hideOnClosed && !lockScreenManager.isLocked {
                           DoNotDisturbLiveActivity()
                     } else if (!coordinator.expandingView.show || coordinator.expandingView.type == .lockScreen) && vm.notchState == .closed && (lockScreenManager.isLocked || !lockScreenManager.isLockIdle) && Defaults[.enableLockScreenLiveActivity] && !vm.hideOnClosed {
diff --git a/DynamicIsland/Localizable.xcstrings b/DynamicIsland/Localizable.xcstrings
index 7fb3de0..e8f1a17 100644
--- a/DynamicIsland/Localizable.xcstrings
+++ b/DynamicIsland/Localizable.xcstrings
@@ -23715,6 +23715,10 @@
     },
     "Refresh devices" : {
 
+    },
+    "Rejected" : {
+      "comment" : "A label displayed when a device is rejected.",
+      "isCommentAutoGenerated" : true
     },
     "Release name" : {
       "localizations" : {
diff --git a/DynamicIsland/components/Shelf/Services/LocalSendService.swift b/DynamicIsland/components/Shelf/Services/LocalSendService.swift
index 62618c4..e1d5d42 100644
--- a/DynamicIsland/components/Shelf/Services/LocalSendService.swift
+++ b/DynamicIsland/components/Shelf/Services/LocalSendService.swift
@@ -35,6 +35,14 @@ struct LocalSendDeviceInfo: Identifiable, Hashable, Sendable {
     }
 }
 
+enum LocalSendTransferState: Equatable {
+    case idle
+    case sending
+    case completed
+    case failed(String)
+    case rejected(deviceID: String)
+}
+
 @MainActor
 final class LocalSendService: NSObject, ObservableObject {
     static let shared = LocalSendService()
@@ -43,6 +51,8 @@ final class LocalSendService: NSObject, ObservableObject {
     @Published private(set) var isRefreshing = false
     @Published private(set) var isSending = false
     @Published private(set) var sendProgress: Double = 0
+    @Published private(set) var transferState: LocalSendTransferState = .idle
+    @Published private(set) var rejectedDeviceIDs: Set<String> = []
     @Published var selectedDeviceID: String {
         didSet { Defaults[.localSendSelectedDeviceID] = selectedDeviceID }
     }
@@ -59,11 +69,20 @@ final class LocalSendService: NSObject, ObservableObject {
     private var recentProbeIPs: [String] = []
     private var knownPeerIPs: [String] = []
     private var isStarted = false
+    private var completionDismissTask: Task<Void, Never>?
 
     private override init() {
         selectedDeviceID = Defaults[.localSendSelectedDeviceID]
         super.init()
     }
+    
+    func clearRejectedStatus(for deviceID: String) {
+        rejectedDeviceIDs.remove(deviceID)
+    }
+    
+    func clearAllRejectedStatuses() {
+        rejectedDeviceIDs.removeAll()
+    }
 
     func startDiscovery() {
         guard !isStarted else { return }
@@ -483,6 +502,8 @@ final class LocalSendService: NSObject, ObservableObject {
         let startedAt = Date()
         isSending = true
         sendProgress = 0
+        transferState = .sending
+        completionDismissTask?.cancel()
 
         do {
             guard let target = devices.first(where: { $0.id == selectedDeviceID }) ?? devices.first else {
@@ -495,7 +516,7 @@ final class LocalSendService: NSObject, ObservableObject {
             let prepare = try await prepareUpload(files: files, to: target)
             guard !prepare.fileTokens.isEmpty else {
                 sendProgress = 1
-                await finishSending(startedAt: startedAt)
+                await finishSending(startedAt: startedAt, success: true)
                 return
             }
 
@@ -527,14 +548,24 @@ final class LocalSendService: NSObject, ObservableObject {
             }
 
             sendProgress = 1
-            await finishSending(startedAt: startedAt)
+            await finishSending(startedAt: startedAt, success: true)
+        } catch let error as LocalSendServiceError {
+            if case .transferRejected = error {
+                rejectedDeviceIDs.insert(selectedDeviceID)
+                transferState = .rejected(deviceID: selectedDeviceID)
+            } else {
+                transferState = .failed(error.localizedDescription)
+            }
+            await finishSending(startedAt: startedAt, success: false)
+            throw error
         } catch {
-            await finishSending(startedAt: startedAt)
+            transferState = .failed(error.localizedDescription)
+            await finishSending(startedAt: startedAt, success: false)
             throw error
         }
     }
 
-    private func finishSending(startedAt: Date) async {
+    private func finishSending(startedAt: Date, success: Bool) async {
         let elapsed = Date().timeIntervalSince(startedAt)
         let minimumVisibleDuration: TimeInterval = 0.8
         if elapsed < minimumVisibleDuration {
@@ -543,6 +574,27 @@ final class LocalSendService: NSObject, ObservableObject {
         }
         isSending = false
         sendProgress = 0
+        
+        if success {
+            transferState = .completed
+            // Auto-dismiss completed state after 3 seconds
+            completionDismissTask = Task { @MainActor in
+                try? await Task.sleep(nanoseconds: 3_000_000_000)
+                if case .completed = self.transferState {
+                    self.transferState = .idle
+                }
+            }
+        } else {
+            // Auto-dismiss failed/rejected state after 4 seconds
+            completionDismissTask = Task { @MainActor in
+                try? await Task.sleep(nanoseconds: 4_000_000_000)
+                if case .failed = self.transferState {
+                    self.transferState = .idle
+                } else if case .rejected = self.transferState {
+                    self.transferState = .idle
+                }
+            }
+        }
     }
 
     private func sendAnnouncement() {
@@ -880,6 +932,10 @@ final class LocalSendService: NSObject, ObservableObject {
         if http.statusCode == 204 {
             return ("", [:])
         }
+        // HTTP 403 means the transfer was rejected by the recipient
+        if http.statusCode == 403 {
+            throw LocalSendServiceError.transferRejected
+        }
         guard (200 ... 299).contains(http.statusCode) else {
             let body = String(data: data, encoding: .utf8)
             throw LocalSendServiceError.server(status: http.statusCode, body: body)
@@ -1037,6 +1093,7 @@ enum LocalSendServiceError: LocalizedError {
     case invalidTarget
     case invalidResponse
     case server(status: Int, body: String?)
+    case transferRejected
 
     var errorDescription: String? {
         switch self {
@@ -1053,6 +1110,8 @@ enum LocalSendServiceError: LocalizedError {
                 return "LocalSend peer error (\(status)): \(body)"
             }
             return "LocalSend peer error (\(status))"
+        case .transferRejected:
+            return "Transfer was rejected by the recipient"
         }
     }
 }
\ No newline at end of file
diff --git a/DynamicIsland/components/Shelf/Views/FileShareView.swift b/DynamicIsland/components/Shelf/Views/FileShareView.swift
index de7a761..13e2316 100644
--- a/DynamicIsland/components/Shelf/Views/FileShareView.swift
+++ b/DynamicIsland/components/Shelf/Views/FileShareView.swift
@@ -288,8 +288,9 @@ struct FileShareView: View {
                 LocalSendDevicePickerWindowManager.shared.show(
                     onDeviceSelected: { device in
                         localSend.selectedDeviceID = device.id
-                        showLocalSendPicker = false
                         if let providers = pendingDropProviders {
+                            // Close the picker first since handleDrop will use quickShare properly
+                            showLocalSendPicker = false
                             Task {
                                 await handleDrop(providers)
                                 pendingDropProviders = nil
diff --git a/DynamicIsland/components/Shelf/Views/LocalSendLiveActivity.swift b/DynamicIsland/components/Shelf/Views/LocalSendLiveActivity.swift
new file mode 100644
index 0000000..15a72a2
--- /dev/null
+++ b/DynamicIsland/components/Shelf/Views/LocalSendLiveActivity.swift
@@ -0,0 +1,173 @@
+/*
+ * Atoll (DynamicIsland)
+ * Copyright (C) 2024-2026 Atoll Contributors
+ *
+ * This program is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU General Public License as published by
+ * the Free Software Foundation, either version 3 of the License, or
+ * (at your option) any later version.
+ *
+ * This program is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+ * GNU General Public License for more details.
+ *
+ * You should have received a copy of the GNU General Public License
+ * along with this program. If not, see <https://www.gnu.org/licenses/>.
+ */
+
+import SwiftUI
+import Defaults
+
+struct LocalSendLiveActivity: View {
+    @EnvironmentObject var vm: DynamicIslandViewModel
+    @StateObject private var localSend = LocalSendService.shared
+    
+    @State private var isHovering: Bool = false
+    @State private var isExpanded: Bool = false
+    
+    private var tint: Color {
+        switch localSend.transferState {
+        case .completed:
+            return .green
+        case .failed, .rejected:
+            return .red
+        default:
+            return .accentColor
+        }
+    }
+    
+    private var isActive: Bool {
+        localSend.isSending || localSend.transferState == .completed || 
+        isFailedOrRejected
+    }
+    
+    private var isFailedOrRejected: Bool {
+        if case .failed = localSend.transferState { return true }
+        if case .rejected = localSend.transferState { return true }
+        return false
+    }
+    
+    var body: some View {
+        HStack(spacing: 0) {
+            // Left side: upload icon capsule
+            Color.clear
+                .background {
+                    if isExpanded {
+                        HStack {
+                            ZStack {
+                                RoundedRectangle(cornerRadius: 6, style: .continuous)
+                                    .fill(tint.opacity(0.14))
+                                
+                                Image(systemName: leftIcon)
+                                    .font(.system(size: 14, weight: .semibold))
+                                    .foregroundStyle(tint)
+                            }
+                            .frame(
+                                width: vm.effectiveClosedNotchHeight - 12,
+                                height: vm.effectiveClosedNotchHeight - 12
+                            )
+                        }
+                        .frame(maxWidth: .infinity, maxHeight: .infinity, alignment: .leading)
+                    }
+                }
+                .frame(
+                    width: isExpanded ? max(0, vm.effectiveClosedNotchHeight - (isHovering ? 0 : 12)) : 0,
+                    height: vm.effectiveClosedNotchHeight - (isHovering ? 0 : 12)
+                )
+            
+            // Center: closed notch body (slightly wider during transfers)
+            Rectangle()
+                .fill(.black)
+                .frame(
+                    width: vm.closedNotchSize.width
+                        + (isHovering ? 8 : 0)
+                        + (isActive ? 40 : 0)
+                )
+            
+            // Right side: progress ring or status icon
+            Color.clear
+                .background {
+                    if isExpanded {
+                        HStack {
+                            rightContent
+                        }
+                        .frame(maxWidth: .infinity, maxHeight: .infinity, alignment: .trailing)
+                    }
+                }
+                .frame(
+                    width: isExpanded ? max(60, vm.effectiveClosedNotchHeight) : 0,
+                    height: vm.effectiveClosedNotchHeight - (isHovering ? 0 : 12)
+                )
+        }
+        .frame(height: vm.effectiveClosedNotchHeight + (isHovering ? 8 : 0))
+        .onAppear {
+            withAnimation(.smooth(duration: 0.35)) {
+                isExpanded = true
+            }
+        }
+        .onChange(of: isActive) { _, newValue in
+            withAnimation(.smooth(duration: 0.35)) {
+                isExpanded = newValue
+            }
+        }
+    }
+    
+    private var leftIcon: String {
+        // Always show document upload icon on left side
+        return "document.badge.arrow.up.fill"
+    }
+    
+    @ViewBuilder
+    private var rightContent: some View {
+        switch localSend.transferState {
+        case .completed:
+            Image(systemName: "checkmark.circle.fill")
+                .foregroundStyle(.green)
+                .font(.system(size: 16, weight: .semibold))
+                .padding(.trailing, 6)
+        case .failed:
+            Image(systemName: "xmark.circle.fill")
+                .foregroundStyle(.red)
+                .font(.system(size: 16, weight: .semibold))
+                .padding(.trailing, 6)
+        case .rejected:
+            Image(systemName: "hand.raised.fill")
+                .foregroundStyle(.orange)
+                .font(.system(size: 16, weight: .semibold))
+                .padding(.trailing, 6)
+        case .sending, .idle:
+            LocalSendProgressRing(progress: localSend.sendProgress)
+                .padding(.trailing, 6)
+        }
+    }
+}
+
+// MARK: - Progress Ring
+
+private struct LocalSendProgressRing: View {
+    let progress: Double
+    
+    var body: some View {
+        ZStack {
+            Circle()
+                .stroke(Color.white.opacity(0.2), lineWidth: 2.5)
+            
+            Circle()
+                .trim(from: 0, to: min(max(progress, 0), 1))
+                .stroke(
+                    Color.accentColor,
+                    style: StrokeStyle(lineWidth: 2.5, lineCap: .round)
+                )
+                .rotationEffect(.degrees(-90))
+                .animation(.easeInOut(duration: 0.2), value: progress)
+            
+            if progress > 0.99 {
+                Image(systemName: "checkmark")
+                    .font(.system(size: 8, weight: .bold))
+                    .foregroundColor(.accentColor)
+            }
+        }
+        .frame(width: 20, height: 20)
+    }
+}
diff --git a/DynamicIsland/managers/LocalSendDevicePickerWindowManager.swift b/DynamicIsland/managers/LocalSendDevicePickerWindowManager.swift
index 8fa47d9..b5bc850 100644
--- a/DynamicIsland/managers/LocalSendDevicePickerWindowManager.swift
+++ b/DynamicIsland/managers/LocalSendDevicePickerWindowManager.swift
@@ -49,7 +49,9 @@ final class LocalSendDevicePickerWindowManager {
         )
         
         if let existingWindow = window {
-            existingWindow.contentView = NSHostingView(rootView: pickerView)
+            let hostingView = NSHostingView(rootView: pickerView)
+            hostingView.layer?.backgroundColor = .clear
+            existingWindow.contentView = hostingView
             existingWindow.makeKeyAndOrderFront(nil)
             return
         }
@@ -74,7 +76,15 @@ final class LocalSendDevicePickerWindowManager {
         newWindow.hasShadow = true
         newWindow.level = .floating
         newWindow.collectionBehavior = [.canJoinAllSpaces, .fullScreenAuxiliary]
-        newWindow.contentView = NSHostingView(rootView: pickerView)
+        
+        let hostingView = NSHostingView(rootView: 
+            pickerView
+                .background(Color.clear)
+        )
+        hostingView.wantsLayer = true
+        hostingView.layer?.backgroundColor = .clear
+        hostingView.layer?.isOpaque = false
+        newWindow.contentView = hostingView
         newWindow.isMovableByWindowBackground = true
         
         window = newWindow
@@ -134,8 +144,12 @@ struct LocalSendDevicePickerView: View {
     
     var body: some View {
         ZStack {
-            // Background
+            // Explicitly clear background for proper transparency
+            Color.clear
+            
+            // Background - clips to rounded rect
             panelBackground
+                .clipShape(RoundedRectangle(cornerRadius: cornerRadius, style: .continuous))
             
             // Content
             VStack(spacing: 16) {
@@ -203,6 +217,7 @@ struct LocalSendDevicePickerView: View {
                 .stroke(Color.white.opacity(0.2), lineWidth: 1)
         }
         .shadow(color: Color.black.opacity(0.4), radius: 30, x: 0, y: 15)
+        .compositingGroup()
         .onAppear {
             localSend.startDiscovery()
             localSend.refreshDeviceScan()
@@ -291,7 +306,9 @@ struct LocalSendDevicePickerView: View {
                     DeviceGridItem(
                         device: device,
                         isHovered: hoveredDeviceID == device.id,
+                        isRejected: localSend.rejectedDeviceIDs.contains(device.id),
                         onSelect: {
+                            localSend.clearRejectedStatus(for: device.id)
                             onDeviceSelected(device)
                         }
                     )
@@ -311,6 +328,7 @@ struct LocalSendDevicePickerView: View {
 private struct DeviceGridItem: View {
     let device: LocalSendDeviceInfo
     let isHovered: Bool
+    let isRejected: Bool
     let onSelect: () -> Void
     
     var body: some View {
@@ -319,23 +337,27 @@ private struct DeviceGridItem: View {
                 // Device icon
                 ZStack {
                     Circle()
-                        .fill(Color.white.opacity(isHovered ? 0.15 : 0.08))
+                        .fill(isRejected ? Color.red.opacity(0.15) : Color.white.opacity(isHovered ? 0.15 : 0.08))
                         .frame(width: 56, height: 56)
                     
                     Image(systemName: deviceIcon)
                         .font(.system(size: 24, weight: .medium))
-                        .foregroundColor(isHovered ? .accentColor : .white.opacity(0.8))
+                        .foregroundColor(isRejected ? .red : (isHovered ? .accentColor : .white.opacity(0.8)))
                 }
                 
                 // Device name
                 VStack(spacing: 2) {
                     Text(device.alias)
                         .font(.system(size: 12, weight: .medium))
-                        .foregroundColor(.white)
+                        .foregroundColor(isRejected ? .red : .white)
                         .lineLimit(1)
                         .truncationMode(.tail)
                     
-                    if let model = device.model, !model.isEmpty {
+                    if isRejected {
+                        Text("Rejected")
+                            .font(.system(size: 10, weight: .medium))
+                            .foregroundColor(.red.opacity(0.8))
+                    } else if let model = device.model, !model.isEmpty {
                         Text(model)
                             .font(.system(size: 10))
                             .foregroundColor(.white.opacity(0.5))
@@ -348,7 +370,7 @@ private struct DeviceGridItem: View {
             .padding(.vertical, 16)
             .background(
                 RoundedRectangle(cornerRadius: 16)
-                    .fill(Color.white.opacity(isHovered ? 0.12 : 0.06))
+                    .fill(isRejected ? Color.red.opacity(0.08) : Color.white.opacity(isHovered ? 0.12 : 0.06))
             )
             .overlay(
                 RoundedRectangle(cornerRadius: 16)