diff --git a/packages/app/e2e/new-workspace.spec.ts b/packages/app/e2e/new-workspace.spec.ts
index dd8a2f9aa..b189bf6e8 100644
--- a/packages/app/e2e/new-workspace.spec.ts
+++ b/packages/app/e2e/new-workspace.spec.ts
@@ -52,7 +52,7 @@ interface WorkspaceStatusGroupEvent {
 }
 
 async function switchSidebarToStatusGrouping(page: import("@playwright/test").Page) {
-  await page.getByTestId("sidebar-grouping-selector").click();
+  await page.getByTestId("sidebar-display-preferences-menu").click();
   await page.getByTestId("sidebar-grouping-status").click();
   await expect(page.getByTestId("sidebar-status-group-done")).toBeVisible({ timeout: 30_000 });
 }
diff --git a/packages/app/e2e/sidebar-model-b.spec.ts b/packages/app/e2e/sidebar-model-b.spec.ts
index 0b6bd0c1e..4363dd62e 100644
--- a/packages/app/e2e/sidebar-model-b.spec.ts
+++ b/packages/app/e2e/sidebar-model-b.spec.ts
@@ -127,7 +127,7 @@ test.describe("Model B sidebar shape", () => {
       await expect(workspaceRow(page, idleProject.workspaceId)).toBeVisible({ timeout: 30_000 });
 
       // Switch to status grouping.
-      await page.getByTestId("sidebar-grouping-selector").click();
+      await page.getByTestId("sidebar-display-preferences-menu").click();
       await page.getByTestId("sidebar-grouping-status").click();
 
       const sidebar = page.getByTestId("sidebar-sessions").filter({ visible: true }).first();
diff --git a/packages/app/e2e/workspace-model-regressions.spec.ts b/packages/app/e2e/workspace-model-regressions.spec.ts
index aaac489e6..20501ed15 100644
--- a/packages/app/e2e/workspace-model-regressions.spec.ts
+++ b/packages/app/e2e/workspace-model-regressions.spec.ts
@@ -72,7 +72,7 @@ async function fetchAgentStatus(seeded: SeededWorkspace, agentId: string): Promi
 }
 
 async function switchSidebarToStatusGrouping(page: import("@playwright/test").Page) {
-  await page.getByTestId("sidebar-grouping-selector").click();
+  await page.getByTestId("sidebar-display-preferences-menu").click();
   await page.getByTestId("sidebar-grouping-status").click();
   await expect(page.locator('[data-testid^="sidebar-status-group-"]').first()).toBeVisible({
     timeout: 30_000,
diff --git a/packages/app/e2e/workspace-model-restart.spec.ts b/packages/app/e2e/workspace-model-restart.spec.ts
index a46c9569d..82da902e7 100644
--- a/packages/app/e2e/workspace-model-restart.spec.ts
+++ b/packages/app/e2e/workspace-model-restart.spec.ts
@@ -390,7 +390,7 @@ async function expectWorkspaceRowInStatusBucket(
   page: Page,
   input: { serverId: string; workspaceId: string; bucket: string },
 ) {
-  await page.getByTestId("sidebar-grouping-selector").click();
+  await page.getByTestId("sidebar-display-preferences-menu").click();
   await page.getByTestId("sidebar-grouping-status").click();
   await expect(
     page
diff --git a/packages/app/src/components/left-sidebar.tsx b/packages/app/src/components/left-sidebar.tsx
index 033639b06..759f0f991 100644
--- a/packages/app/src/components/left-sidebar.tsx
+++ b/packages/app/src/components/left-sidebar.tsx
@@ -35,7 +35,7 @@ import { useSafeAreaInsets } from "react-native-safe-area-context";
 import { StyleSheet, useUnistyles } from "react-native-unistyles";
 import { TitlebarDragRegion } from "@/components/desktop/titlebar-drag-region";
 import { SidebarHeaderRow } from "@/components/sidebar/sidebar-header-row";
-import { SidebarGroupingSelector } from "@/components/sidebar/sidebar-grouping-selector";
+import { SidebarDisplayPreferencesMenu } from "@/components/sidebar/sidebar-display-preferences-menu";
 import { Combobox, ComboboxItem, type ComboboxOption } from "@/components/ui/combobox";
 import { Shortcut } from "@/components/ui/shortcut";
 import { Tooltip, TooltipContent, TooltipTrigger } from "@/components/ui/tooltip";
@@ -1096,7 +1096,7 @@ function WorkspacesSectionHeader({ serverId }: { serverId: string | null }) {
         <Tooltip delayDuration={300}>
           <TooltipTrigger asChild>
             <View>
-              <SidebarGroupingSelector serverId={serverId} />
+              <SidebarDisplayPreferencesMenu serverId={serverId} />
             </View>
           </TooltipTrigger>
           <TooltipContent side="bottom" align="center" offset={8}>
diff --git a/packages/app/src/components/sidebar/sidebar-grouping-selector.tsx b/packages/app/src/components/sidebar/sidebar-display-preferences-menu.tsx
similarity index 60%
rename from packages/app/src/components/sidebar/sidebar-grouping-selector.tsx
rename to packages/app/src/components/sidebar/sidebar-display-preferences-menu.tsx
index 216a01109..7e822e51e 100644
--- a/packages/app/src/components/sidebar/sidebar-grouping-selector.tsx
+++ b/packages/app/src/components/sidebar/sidebar-display-preferences-menu.tsx
@@ -8,9 +8,11 @@ import {
   DropdownMenuTrigger,
   DropdownMenuContent,
   DropdownMenuItem,
+  DropdownMenuSeparator,
 } from "@/components/ui/dropdown-menu";
 import { useSidebarViewStore, type SidebarGroupMode } from "@/stores/sidebar-view-store";
 import { isWeb as platformIsWeb } from "@/constants/platform";
+import { useAppSettings, type WorkspaceTitleSource } from "@/hooks/use-settings";
 
 const ThemedSettings2 = withUnistyles(Settings2);
 const filterColorMapping = (theme: Theme) => ({ color: theme.colors.foregroundMuted });
@@ -20,11 +22,25 @@ const GROUP_MODE_ITEMS: Array<{ value: SidebarGroupMode; label: string }> = [
   { value: "status", label: "Status" },
 ];
 
-export function SidebarGroupingSelector({ serverId }: { serverId: string | null }) {
+const WORKSPACE_TITLE_SOURCE_ITEMS: Array<{ value: WorkspaceTitleSource; label: string }> = [
+  { value: "title", label: "Title" },
+  { value: "branch", label: "Branch name" },
+];
+
+interface DisplayPreferenceOption<Value extends string> {
+  value: Value;
+  label: string;
+}
+
+export function SidebarDisplayPreferencesMenu({ serverId }: { serverId: string | null }) {
   const groupMode = useSidebarViewStore((state) =>
     serverId ? state.getGroupMode(serverId) : "project",
   );
   const setGroupMode = useSidebarViewStore((state) => state.setGroupMode);
+  const {
+    settings: { workspaceTitleSource },
+    updateSettings,
+  } = useAppSettings();
 
   const handleSelect = useCallback(
     (mode: SidebarGroupMode) => {
@@ -34,6 +50,13 @@ export function SidebarGroupingSelector({ serverId }: { serverId: string | null
     [serverId, setGroupMode],
   );
 
+  const handleWorkspaceTitleSourceSelect = useCallback(
+    (source: WorkspaceTitleSource) => {
+      void updateSettings({ workspaceTitleSource: source });
+    },
+    [updateSettings],
+  );
+
   const triggerStyle = useCallback(
     ({ hovered = false }: PressableStateCallbackType & { hovered?: boolean }) => [
       styles.trigger,
@@ -47,45 +70,61 @@ export function SidebarGroupingSelector({ serverId }: { serverId: string | null
       <DropdownMenuTrigger
         style={triggerStyle}
         accessibilityRole={platformIsWeb ? undefined : "button"}
-        accessibilityLabel="Sidebar grouping"
-        testID="sidebar-grouping-selector"
+        accessibilityLabel="Display preferences"
+        testID="sidebar-display-preferences-menu"
       >
         <ThemedSettings2 size={14} uniProps={filterColorMapping} />
       </DropdownMenuTrigger>
-      <DropdownMenuContent align="start" width={180} testID="sidebar-grouping-menu">
+      <DropdownMenuContent align="end" width={180} testID="sidebar-display-preferences-content">
         <View style={styles.menuHeader}>
           <Text style={styles.menuHeaderLabel}>Group by</Text>
         </View>
         {GROUP_MODE_ITEMS.map((item) => (
-          <GroupModeMenuItem
+          <DisplayPreferenceMenuItem
             key={item.value}
             item={item}
             isSelected={groupMode === item.value}
+            testIDPrefix="sidebar-grouping"
             onSelect={handleSelect}
           />
         ))}
+        <DropdownMenuSeparator />
+        <View style={styles.menuHeader}>
+          <Text style={styles.menuHeaderLabel}>Workspace title</Text>
+        </View>
+        {WORKSPACE_TITLE_SOURCE_ITEMS.map((item) => (
+          <DisplayPreferenceMenuItem
+            key={item.value}
+            item={item}
+            isSelected={workspaceTitleSource === item.value}
+            testIDPrefix="sidebar-workspace-title-source"
+            onSelect={handleWorkspaceTitleSourceSelect}
+          />
+        ))}
       </DropdownMenuContent>
     </DropdownMenu>
   );
 }
 
-function GroupModeMenuItem({
+function DisplayPreferenceMenuItem<Value extends string>({
   item,
   isSelected,
+  testIDPrefix,
   onSelect,
 }: {
-  item: { value: SidebarGroupMode; label: string };
+  item: DisplayPreferenceOption<Value>;
   isSelected: boolean;
-  onSelect: (mode: SidebarGroupMode) => void;
+  testIDPrefix: string;
+  onSelect: (value: Value) => void;
 }) {
   const handleSelect = useCallback(() => onSelect(item.value), [item.value, onSelect]);
   return (
     <DropdownMenuItem
-      testID={`sidebar-grouping-${item.value}`}
+      testID={`${testIDPrefix}-${item.value}`}
       selected={isSelected}
       onSelect={handleSelect}
     >
-      {item.label}
+      <Text style={styles.optionLabel}>{item.label}</Text>
     </DropdownMenuItem>
   );
 }
@@ -110,4 +149,7 @@ const styles = StyleSheet.create((theme) => ({
     fontWeight: theme.fontWeight.medium,
     color: theme.colors.foregroundMuted,
   },
+  optionLabel: {
+    fontSize: theme.fontSize.sm,
+  },
 }));
diff --git a/packages/app/src/components/sidebar/sidebar-workspace-row-content.tsx b/packages/app/src/components/sidebar/sidebar-workspace-row-content.tsx
index ae8db5def..8c172d104 100644
--- a/packages/app/src/components/sidebar/sidebar-workspace-row-content.tsx
+++ b/packages/app/src/components/sidebar/sidebar-workspace-row-content.tsx
@@ -22,12 +22,14 @@ import { GitHubIcon } from "@/components/icons/github-icon";
 import { WorkspaceHoverCard } from "@/components/workspace-hover-card";
 import { SyncedLoader } from "@/components/synced-loader";
 import type { SidebarWorkspaceEntry } from "@/hooks/use-sidebar-workspaces-list";
+import { useAppSettings } from "@/hooks/use-settings";
 import type { Theme } from "@/styles/theme";
 import type { PrHint } from "@/git/use-pr-status-query";
 import type { SidebarStateBucket } from "@/utils/sidebar-agent-state";
 import { isEmphasizedStatusDotBucket } from "@/utils/status-dot-color";
 import { shouldRenderSyncedStatusLoader } from "@/utils/status-loader";
 import { openExternalUrl } from "@/utils/open-external-url";
+import { resolveSidebarWorkspacePrimaryLabel } from "@/components/sidebar/sidebar-workspace-title";
 
 const DEFAULT_STATUS_DOT_SIZE = 7;
 const EMPHASIZED_STATUS_DOT_SIZE = 9;
@@ -110,6 +112,10 @@ export const SidebarWorkspaceRowContent = memo(function SidebarWorkspaceRowConte
   showShortcutBadge?: boolean;
   children?: ReactNode;
 }) {
+  const {
+    settings: { workspaceTitleSource },
+  } = useAppSettings();
+  const workspaceLabel = resolveSidebarWorkspacePrimaryLabel({ workspace, workspaceTitleSource });
   const workspaceBranchTextStyle = useMemo(
     () => [
       styles.workspaceBranchText,
@@ -132,7 +138,7 @@ export const SidebarWorkspaceRowContent = memo(function SidebarWorkspaceRowConte
           <View style={styles.workspaceTitleRow}>
             <View style={styles.workspaceTitleLeft}>
               <Text style={workspaceBranchTextStyle} numberOfLines={1}>
-                {workspace.name}
+                {workspaceLabel}
               </Text>
               {scriptIconKind ? <WorkspaceScriptIcon kind={scriptIconKind} /> : null}
             </View>
diff --git a/packages/app/src/components/sidebar/sidebar-workspace-title.test.ts b/packages/app/src/components/sidebar/sidebar-workspace-title.test.ts
new file mode 100644
index 000000000..9b91dba9d
--- /dev/null
+++ b/packages/app/src/components/sidebar/sidebar-workspace-title.test.ts
@@ -0,0 +1,31 @@
+import { describe, expect, it } from "vitest";
+import { resolveSidebarWorkspacePrimaryLabel } from "@/components/sidebar/sidebar-workspace-title";
+
+describe("resolveSidebarWorkspacePrimaryLabel", () => {
+  it("uses the workspace name in title mode", () => {
+    const label = resolveSidebarWorkspacePrimaryLabel({
+      workspace: { name: "Investigate search", currentBranch: "fix/search" },
+      workspaceTitleSource: "title",
+    });
+
+    expect(label).toBe("Investigate search");
+  });
+
+  it("uses the branch name in branch mode", () => {
+    const label = resolveSidebarWorkspacePrimaryLabel({
+      workspace: { name: "Investigate search", currentBranch: "fix/search" },
+      workspaceTitleSource: "branch",
+    });
+
+    expect(label).toBe("fix/search");
+  });
+
+  it("falls back to the workspace name in branch mode without a branch", () => {
+    const label = resolveSidebarWorkspacePrimaryLabel({
+      workspace: { name: "Local folder", currentBranch: null },
+      workspaceTitleSource: "branch",
+    });
+
+    expect(label).toBe("Local folder");
+  });
+});
diff --git a/packages/app/src/components/sidebar/sidebar-workspace-title.ts b/packages/app/src/components/sidebar/sidebar-workspace-title.ts
new file mode 100644
index 000000000..1ad4e6616
--- /dev/null
+++ b/packages/app/src/components/sidebar/sidebar-workspace-title.ts
@@ -0,0 +1,12 @@
+import type { SidebarWorkspaceEntry } from "@/hooks/use-sidebar-workspaces-list";
+import type { WorkspaceTitleSource } from "@/hooks/use-settings";
+
+export function resolveSidebarWorkspacePrimaryLabel(input: {
+  workspace: Pick<SidebarWorkspaceEntry, "name" | "currentBranch">;
+  workspaceTitleSource: WorkspaceTitleSource;
+}): string {
+  if (input.workspaceTitleSource === "branch") {
+    return input.workspace.currentBranch ?? input.workspace.name;
+  }
+  return input.workspace.name;
+}
diff --git a/packages/app/src/hooks/use-settings/index.ts b/packages/app/src/hooks/use-settings/index.ts
index fb8be8f85..19c9cb9fe 100644
--- a/packages/app/src/hooks/use-settings/index.ts
+++ b/packages/app/src/hooks/use-settings/index.ts
@@ -38,6 +38,7 @@ import {
   type ServiceUrlBehavior,
   type Settings,
   type SettingsDeps,
+  type WorkspaceTitleSource,
 } from "./storage";
 
 export {
@@ -67,6 +68,7 @@ export type {
   ServiceUrlBehavior,
   Settings,
   SettingsDeps,
+  WorkspaceTitleSource,
 };
 
 const productionDeps: SettingsDeps = {
@@ -172,6 +174,9 @@ export function useSettings(): UseSettingsReturn {
       if (updates.syntaxTheme !== undefined) {
         appUpdates.syntaxTheme = updates.syntaxTheme;
       }
+      if (updates.workspaceTitleSource !== undefined) {
+        appUpdates.workspaceTitleSource = updates.workspaceTitleSource;
+      }
       const promises: Promise<void>[] = [];
       if (Object.keys(appUpdates).length > 0) {
         promises.push(appSettings.updateSettings(appUpdates));
diff --git a/packages/app/src/hooks/use-settings/storage.test.ts b/packages/app/src/hooks/use-settings/storage.test.ts
index 796a362dd..87c5e4321 100644
--- a/packages/app/src/hooks/use-settings/storage.test.ts
+++ b/packages/app/src/hooks/use-settings/storage.test.ts
@@ -61,6 +61,14 @@ describe("loadAppSettingsFromStorage", () => {
     expect(result.language).toBe("system");
   });
 
+  it("defaults workspace title source to title when storage is empty", async () => {
+    const deps = makeDeps();
+
+    const result = await loadAppSettingsFromStorage(deps);
+
+    expect(result.workspaceTitleSource).toBe("title");
+  });
+
   it("loads configured terminal scrollback lines from app settings", async () => {
     const deps = makeDeps({
       storage: createInMemoryKeyValueStorage({
@@ -73,6 +81,30 @@ describe("loadAppSettingsFromStorage", () => {
     expect(result.terminalScrollbackLines).toBe(42_000);
   });
 
+  it("loads configured workspace title source from app settings", async () => {
+    const deps = makeDeps({
+      storage: createInMemoryKeyValueStorage({
+        [APP_SETTINGS_KEY]: JSON.stringify({ workspaceTitleSource: "branch" }),
+      }),
+    });
+
+    const result = await loadAppSettingsFromStorage(deps);
+
+    expect(result.workspaceTitleSource).toBe("branch");
+  });
+
+  it("drops an unknown workspace title source back to title", async () => {
+    const deps = makeDeps({
+      storage: createInMemoryKeyValueStorage({
+        [APP_SETTINGS_KEY]: JSON.stringify({ workspaceTitleSource: "directory" }),
+      }),
+    });
+
+    const result = await loadAppSettingsFromStorage(deps);
+
+    expect(result.workspaceTitleSource).toBe("title");
+  });
+
   it("normalizes terminal scrollback lines from storage", async () => {
     const deps = makeDeps({
       storage: createInMemoryKeyValueStorage({
diff --git a/packages/app/src/hooks/use-settings/storage.ts b/packages/app/src/hooks/use-settings/storage.ts
index ff2c180d1..9bf897cef 100644
--- a/packages/app/src/hooks/use-settings/storage.ts
+++ b/packages/app/src/hooks/use-settings/storage.ts
@@ -11,9 +11,11 @@ const LEGACY_SETTINGS_KEY = "@paseo:settings";
 export type SendBehavior = "interrupt" | "queue";
 export type ReleaseChannel = "stable" | "beta";
 export type ServiceUrlBehavior = "ask" | "in-app" | "external";
+export type WorkspaceTitleSource = "title" | "branch";
 
 const VALID_THEMES = new Set<string>([...Object.keys(THEME_TO_UNISTYLES), "auto"]);
 const VALID_SERVICE_URL_BEHAVIORS = new Set<ServiceUrlBehavior>(["ask", "in-app", "external"]);
+const VALID_WORKSPACE_TITLE_SOURCES = new Set<WorkspaceTitleSource>(["title", "branch"]);
 export const DEFAULT_TERMINAL_SCROLLBACK_LINES = 10_000;
 export const MIN_TERMINAL_SCROLLBACK_LINES = 0;
 export const MAX_TERMINAL_SCROLLBACK_LINES = 1_000_000;
@@ -36,6 +38,7 @@ export interface AppSettings {
   uiFontSize: number; // clamped px, default 16
   codeFontSize: number; // clamped px, default 12
   syntaxTheme: SyntaxThemeId; // default "one"
+  workspaceTitleSource: WorkspaceTitleSource;
 }
 
 export interface Settings extends AppSettings {
@@ -54,6 +57,7 @@ export const DEFAULT_CLIENT_SETTINGS: AppSettings = {
   uiFontSize: DEFAULT_UI_FONT_SIZE,
   codeFontSize: DEFAULT_CODE_FONT_SIZE,
   syntaxTheme: "one",
+  workspaceTitleSource: "title",
 };
 
 export const DEFAULT_APP_SETTINGS: Settings = {
@@ -194,6 +198,12 @@ function pickAppSettings(stored: Partial<AppSettings>): Partial<AppSettings> {
   if (typeof stored.syntaxTheme === "string" && isSyntaxThemeId(stored.syntaxTheme)) {
     result.syntaxTheme = stored.syntaxTheme;
   }
+  if (
+    typeof stored.workspaceTitleSource === "string" &&
+    VALID_WORKSPACE_TITLE_SOURCES.has(stored.workspaceTitleSource)
+  ) {
+    result.workspaceTitleSource = stored.workspaceTitleSource;
+  }
   return result;
 }