diff --git a/packages/web/src/components/modals/instanceSettingsPanels/FederationPanel.tsx b/packages/web/src/components/modals/instanceSettingsPanels/FederationPanel.tsx
index 5bab0dd1..52e62518 100644
--- a/packages/web/src/components/modals/instanceSettingsPanels/FederationPanel.tsx
+++ b/packages/web/src/components/modals/instanceSettingsPanels/FederationPanel.tsx
@@ -1,10 +1,153 @@
+import { useState, useEffect, useCallback } from 'react';
+import { useSettingsStore } from '../../../stores/settingsStore';
+import { useUIStore } from '../../../stores/uiStore';
+import { Toggle } from '../../ui/Toggle';
+import { api } from '../../../api/client';
+import type { InstanceAdminSettings } from '@backspace/shared';
+import type { FederationPeer } from '../../../api/client';
+
+// ─── Global Settings ─────────────────────────────────────────────────────────
+
+function FederationGlobalSettings() {
+  const instanceSettings = useSettingsStore((s) => s.instanceSettings);
+  const updateInstanceSettings = useSettingsStore((s) => s.updateInstanceSettings);
+  const addToast = useUIStore((s) => s.addToast);
+
+  const [draft, setDraft] = useState<Pick<InstanceAdminSettings, 'federationRelayEnabled' | 'federationRelayTtlDays' | 'defaultAutoRotateIntervalDays'> | null>(null);
+  const [saving, setSaving] = useState(false);
+  const [saveError, setSaveError] = useState('');
+
+  useEffect(() => {
+    if (instanceSettings) {
+      setDraft({
+        federationRelayEnabled: instanceSettings.federationRelayEnabled,
+        federationRelayTtlDays: instanceSettings.federationRelayTtlDays,
+        defaultAutoRotateIntervalDays: instanceSettings.defaultAutoRotateIntervalDays,
+      });
+    }
+  }, [instanceSettings]);
+
+  if (!draft) return null;
+
+  const hasChanges = instanceSettings
+    ? draft.federationRelayEnabled !== instanceSettings.federationRelayEnabled ||
+      draft.federationRelayTtlDays !== instanceSettings.federationRelayTtlDays ||
+      draft.defaultAutoRotateIntervalDays !== instanceSettings.defaultAutoRotateIntervalDays
+    : false;
+
+  const handleSave = async () => {
+    setSaving(true);
+    setSaveError('');
+    try {
+      await updateInstanceSettings(draft);
+      addToast('Settings saved', 'success', 2000);
+    } catch (err) {
+      setSaveError(err instanceof Error ? err.message : 'Failed to save');
+    } finally {
+      setSaving(false);
+    }
+  };
+
+  const handleReset = () => {
+    if (instanceSettings) {
+      setDraft({
+        federationRelayEnabled: instanceSettings.federationRelayEnabled,
+        federationRelayTtlDays: instanceSettings.federationRelayTtlDays,
+        defaultAutoRotateIntervalDays: instanceSettings.defaultAutoRotateIntervalDays,
+      });
+    }
+    setSaveError('');
+  };
+
+  return (
+    <div>
+      <div className="text-[11px] font-semibold text-txt-tertiary uppercase tracking-wider mb-1.5">Relay Settings</div>
+      <p className="text-xs text-txt-tertiary mb-2">
+        Control DM relay between federated instances. When enabled, DMs with users on peer instances are relayed server-to-server.
+      </p>
+      <div className="rounded-lg bg-white/[0.02] p-3.5 space-y-4">
+        <label className="flex items-center justify-between cursor-pointer">
+          <div>
+            <div className="text-sm font-medium text-txt-primary">Enable DM Relay</div>
+            <div className="text-xs text-txt-tertiary mt-0.5">Relay direct messages to and from peer instances</div>
+          </div>
+          <Toggle enabled={draft.federationRelayEnabled} onChange={(v) => setDraft({ ...draft, federationRelayEnabled: v })} />
+        </label>
+
+        <div>
+          <div className="text-sm font-medium text-txt-primary mb-1">Relay TTL (days)</div>
+          <div className="text-xs text-txt-tertiary mb-2">How long relayed messages are retained in the outbox before cleanup</div>
+          <input
+            type="number"
+            min={1}
+            max={365}
+            value={draft.federationRelayTtlDays}
+            onChange={(e) => {
+              const val = parseInt(e.target.value, 10);
+              if (!isNaN(val) && val >= 1 && val <= 365) {
+                setDraft({ ...draft, federationRelayTtlDays: val });
+              }
+            }}
+            className="input-standard w-24"
+          />
+        </div>
+
+        <div>
+          <div className="text-sm font-medium text-txt-primary mb-1">Default Secret Rotation (days)</div>
+          <div className="text-xs text-txt-tertiary mb-2">Auto-rotation interval for new peers. Existing peers keep their current setting.</div>
+          <input
+            type="number"
+            min={1}
+            max={365}
+            value={draft.defaultAutoRotateIntervalDays}
+            onChange={(e) => {
+              const val = parseInt(e.target.value, 10);
+              if (!isNaN(val) && val >= 1 && val <= 365) {
+                setDraft({ ...draft, defaultAutoRotateIntervalDays: val });
+              }
+            }}
+            className="input-standard w-24"
+          />
+        </div>
+      </div>
+
+      {saveError && (
+        <div className="mt-2 p-2 bg-accent-rose/10 border border-accent-rose/30 rounded text-txt-danger text-sm">{saveError}</div>
+      )}
+
+      {hasChanges && (
+        <div className="sticky bottom-0 z-10 pointer-events-none">
+          <div className="flex justify-center pt-3 pb-1">
+            <div className="glass-bubble rounded-full px-4 py-2 flex items-center gap-2 animate-slide-up pointer-events-auto">
+              <button onClick={handleReset} className="px-3 py-1 text-sm text-txt-tertiary hover:text-txt-secondary transition-colors">
+                Reset
+              </button>
+              <button
+                onClick={handleSave}
+                disabled={saving}
+                className="px-3 py-1.5 bg-accent-primary hover:bg-accent-primary/80 text-white text-sm font-medium rounded-full transition-colors disabled:opacity-50"
+              >
+                {saving ? 'Saving...' : 'Save'}
+              </button>
+            </div>
+          </div>
+        </div>
+      )}
+    </div>
+  );
+}
+
+// ─── Main Panel ──────────────────────────────────────────────────────────────
+
 export function FederationPanel() {
   return (
-    <div className="space-y-5">
+    <form className="space-y-5" onSubmit={(e) => e.preventDefault()}>
       <h2 className="text-lg font-semibold text-txt-primary">Federation</h2>
       <div className="text-xs text-txt-tertiary">
         Configure federation relay, secret rotation, and manage peered instances.
       </div>
-    </div>
+
+      <FederationGlobalSettings />
+    </form>
   );
 }