diff --git a/src/components/inspector/CodeEditor.tsx b/src/components/inspector/CodeEditor.tsx
new file mode 100644
index 0000000..e74ec30
--- /dev/null
+++ b/src/components/inspector/CodeEditor.tsx
@@ -0,0 +1,314 @@
+import React, { useRef, useEffect, useState, useCallback } from 'react';
+import { tokenizeCode, getThemeBackground, isLightTheme } from '../../utils/highlighter';
+import type { CodeThemeId } from '../../types';
+
+interface CodeEditorProps {
+  value: string;
+  onChange: (value: string) => void;
+  onBlur?: () => void;
+  language: string;
+  theme: CodeThemeId;
+  className?: string;
+}
+
+interface TokenInfo {
+  content: string;
+  color: string;
+}
+
+interface LineTokens {
+  tokens: TokenInfo[];
+}
+
+const CodeEditor: React.FC<CodeEditorProps> = ({
+  value,
+  onChange,
+  onBlur,
+  language,
+  theme,
+  className = '',
+}) => {
+  const textareaRef = useRef<HTMLTextAreaElement>(null);
+  const highlightRef = useRef<HTMLDivElement>(null);
+  const [tokens, setTokens] = useState<LineTokens[]>([]);
+  const [isLoading, setIsLoading] = useState(false);
+
+  // Sync scroll between textarea and highlight overlay
+  const syncScroll = useCallback(() => {
+    if (textareaRef.current && highlightRef.current) {
+      highlightRef.current.scrollTop = textareaRef.current.scrollTop;
+      highlightRef.current.scrollLeft = textareaRef.current.scrollLeft;
+    }
+  }, []);
+
+  // Tokenize code for syntax highlighting
+  useEffect(() => {
+    let cancelled = false;
+
+    tokenizeCode(value, language, theme)
+      .then((result) => {
+        if (!cancelled) {
+          setTokens(result);
+          setIsLoading(false);
+        }
+      })
+      .catch(() => {
+        if (!cancelled) {
+          setIsLoading(false);
+        }
+      });
+
+    return () => {
+      cancelled = true;
+    };
+  }, [value, language, theme]);
+
+  const handleKeyDown = (e: React.KeyboardEvent<HTMLTextAreaElement>) => {
+    const textarea = e.currentTarget;
+    const start = textarea.selectionStart;
+    const end = textarea.selectionEnd;
+    const currentValue = textarea.value;
+
+    // Handle Tab for indentation
+    if (e.key === 'Tab') {
+      e.preventDefault();
+
+      if (e.shiftKey) {
+        // Shift+Tab: Remove indentation
+        const beforeCursor = currentValue.substring(0, start);
+        const lineStart = beforeCursor.lastIndexOf('\n') + 1;
+        const linePrefix = currentValue.substring(lineStart, start);
+
+        if (linePrefix.startsWith('  ')) {
+          const newValue = currentValue.substring(0, lineStart) + currentValue.substring(lineStart + 2);
+          onChange(newValue);
+          setTimeout(() => {
+            textarea.selectionStart = textarea.selectionEnd = Math.max(lineStart, start - 2);
+          }, 0);
+        } else if (linePrefix.startsWith('\t')) {
+          const newValue = currentValue.substring(0, lineStart) + currentValue.substring(lineStart + 1);
+          onChange(newValue);
+          setTimeout(() => {
+            textarea.selectionStart = textarea.selectionEnd = Math.max(lineStart, start - 1);
+          }, 0);
+        }
+      } else {
+        // Tab: Add indentation (2 spaces)
+        const newValue = currentValue.substring(0, start) + '  ' + currentValue.substring(end);
+        onChange(newValue);
+        setTimeout(() => {
+          textarea.selectionStart = textarea.selectionEnd = start + 2;
+        }, 0);
+      }
+      return;
+    }
+
+    // Handle Enter for auto-indentation
+    if (e.key === 'Enter') {
+      e.preventDefault();
+
+      const beforeCursor = currentValue.substring(0, start);
+      const afterCursor = currentValue.substring(end);
+      const lineStart = beforeCursor.lastIndexOf('\n') + 1;
+      const currentLine = currentValue.substring(lineStart, start);
+      const indentMatch = currentLine.match(/^(\s*)/);
+      const indent = indentMatch ? indentMatch[1] : '';
+
+      const charBefore = currentValue[start - 1];
+      const charAfter = currentValue[end];
+
+      // Check if we're between matching brackets
+      const isBetweenBrackets =
+        (charBefore === '{' && charAfter === '}') ||
+        (charBefore === '(' && charAfter === ')') ||
+        (charBefore === '[' && charAfter === ']');
+
+      if (isBetweenBrackets) {
+        // Insert new line with extra indent, then closing bracket on same indent level
+        const newValue =
+          beforeCursor +
+          '\n' +
+          indent +
+          '  ' +
+          '\n' +
+          indent +
+          afterCursor;
+        onChange(newValue);
+
+        // Position cursor on the middle line with extra indentation
+        const newCursorPos = start + 1 + indent.length + 2;
+        setTimeout(() => {
+          textarea.selectionStart = textarea.selectionEnd = newCursorPos;
+        }, 0);
+      } else {
+        // Normal enter behavior with smart indentation
+        const trimmedLine = currentLine.trim();
+        const needsExtraIndent =
+          trimmedLine.endsWith('{') ||
+          trimmedLine.endsWith(':') ||
+          trimmedLine.endsWith('(') ||
+          trimmedLine.endsWith('[');
+        const extraIndent = needsExtraIndent ? '  ' : '';
+
+        const newValue = beforeCursor + '\n' + indent + extraIndent + afterCursor;
+        onChange(newValue);
+
+        const newCursorPos = start + 1 + indent.length + extraIndent.length;
+        setTimeout(() => {
+          textarea.selectionStart = textarea.selectionEnd = newCursorPos;
+        }, 0);
+      }
+      return;
+    }
+
+    // Auto-close brackets
+    const bracketPairs: Record<string, string> = {
+      '{': '}',
+      '(': ')',
+      '[': ']',
+      '"': '"',
+      "'": "'",
+      '`': '`',
+    };
+
+    if (bracketPairs[e.key]) {
+      const closingChar = bracketPairs[e.key];
+      const charAfter = currentValue[end];
+
+      // Don't auto-close if the next character is alphanumeric
+      if (charAfter && /\w/.test(charAfter)) {
+        return;
+      }
+
+      // For quotes, check if we're already inside a quote
+      if (['"', "'", '`'].includes(e.key)) {
+        // If next char is the same quote, just move cursor forward
+        if (charAfter === e.key) {
+          e.preventDefault();
+          setTimeout(() => {
+            textarea.selectionStart = textarea.selectionEnd = end + 1;
+          }, 0);
+          return;
+        }
+      }
+
+      e.preventDefault();
+      const newValue =
+        currentValue.substring(0, start) +
+        e.key +
+        closingChar +
+        currentValue.substring(end);
+      onChange(newValue);
+      setTimeout(() => {
+        textarea.selectionStart = textarea.selectionEnd = start + 1;
+      }, 0);
+      return;
+    }
+
+    // Handle closing bracket - skip if same char is next
+    const closingBrackets = ['}', ')', ']'];
+    if (closingBrackets.includes(e.key)) {
+      const charAfter = currentValue[end];
+      if (charAfter === e.key) {
+        e.preventDefault();
+        setTimeout(() => {
+          textarea.selectionStart = textarea.selectionEnd = end + 1;
+        }, 0);
+        return;
+      }
+    }
+
+    // Handle Backspace - delete matching bracket pair
+    if (e.key === 'Backspace' && start === end && start > 0) {
+      const charBefore = currentValue[start - 1];
+      const charAfter = currentValue[start];
+
+      const pairMatch =
+        (charBefore === '{' && charAfter === '}') ||
+        (charBefore === '(' && charAfter === ')') ||
+        (charBefore === '[' && charAfter === ']') ||
+        (charBefore === '"' && charAfter === '"') ||
+        (charBefore === "'" && charAfter === "'") ||
+        (charBefore === '`' && charAfter === '`');
+
+      if (pairMatch) {
+        e.preventDefault();
+        const newValue = currentValue.substring(0, start - 1) + currentValue.substring(end + 1);
+        onChange(newValue);
+        setTimeout(() => {
+          textarea.selectionStart = textarea.selectionEnd = start - 1;
+        }, 0);
+        return;
+      }
+    }
+  };
+
+  const bgColor = getThemeBackground(theme);
+  const isLight = isLightTheme(theme);
+  const textColor = isLight ? '#1f2937' : '#e5e7eb';
+  const caretColor = isLight ? '#000000' : '#ffffff';
+
+  return (
+    <div
+      className={`relative font-mono text-sm rounded overflow-hidden ${className}`}
+      style={{ backgroundColor: bgColor }}
+    >
+      {/* Syntax highlighted overlay */}
+      <div
+        ref={highlightRef}
+        className="absolute inset-0 overflow-hidden pointer-events-none p-3 whitespace-pre"
+        style={{
+          fontFamily: 'ui-monospace, SFMono-Regular, "SF Mono", Menlo, Consolas, monospace',
+          fontSize: '0.875rem',
+          lineHeight: '1.5',
+          tabSize: 2,
+        }}
+        aria-hidden="true"
+      >
+        {isLoading ? (
+          <span style={{ color: textColor, opacity: 0.5 }}>{value}</span>
+        ) : (
+          tokens.map((line, lineIndex) => (
+            <div key={lineIndex} style={{ minHeight: '1.5em' }}>
+              {line.tokens.length === 0 ? (
+                <span>&nbsp;</span>
+              ) : (
+                line.tokens.map((token, tokenIndex) => (
+                  <span key={tokenIndex} style={{ color: token.color }}>
+                    {token.content}
+                  </span>
+                ))
+              )}
+            </div>
+          ))
+        )}
+      </div>
+
+      {/* Transparent textarea for input */}
+      <textarea
+        ref={textareaRef}
+        value={value}
+        onChange={(e) => onChange(e.target.value)}
+        onKeyDown={handleKeyDown}
+        onBlur={onBlur}
+        onScroll={syncScroll}
+        className="relative w-full h-32 bg-transparent resize-y p-3 outline-none"
+        style={{
+          fontFamily: 'ui-monospace, SFMono-Regular, "SF Mono", Menlo, Consolas, monospace',
+          fontSize: '0.875rem',
+          lineHeight: '1.5',
+          tabSize: 2,
+          color: 'transparent',
+          caretColor: caretColor,
+          WebkitTextFillColor: 'transparent',
+        }}
+        spellCheck={false}
+        autoComplete="off"
+        autoCorrect="off"
+        autoCapitalize="off"
+      />
+    </div>
+  );
+};
+
+export default CodeEditor;
diff --git a/src/components/inspector/CodeInspector.tsx b/src/components/inspector/CodeInspector.tsx
index d7123e2..9f64c32 100644
--- a/src/components/inspector/CodeInspector.tsx
+++ b/src/components/inspector/CodeInspector.tsx
@@ -4,6 +4,7 @@ import type { CodeElement, LineHighlight } from '../../types';
 import { LANGUAGES, FONT_FAMILIES, CODE_THEMES } from '../../types';
 import { detectLanguage } from '../../utils/highlighter';
 import { loadFont } from '../../utils/fontLoader';
+import CodeEditor from './CodeEditor';
 
 interface CodeInspectorProps {
   element: CodeElement;
@@ -53,85 +54,17 @@ const CodeInspector: React.FC<CodeInspectorProps> = ({ element }) => {
 
   const totalLines = element.props.code.split('\n').length;
 
-  const handleKeyDown = (e: React.KeyboardEvent<HTMLTextAreaElement>) => {
-    // Handle Tab for indentation
-    if (e.key === 'Tab') {
-      e.preventDefault();
-      const textarea = e.currentTarget;
-      const start = textarea.selectionStart;
-      const end = textarea.selectionEnd;
-      const value = textarea.value;
-
-      if (e.shiftKey) {
-        // Shift+Tab: Remove indentation
-        const beforeCursor = value.substring(0, start);
-        const lineStart = beforeCursor.lastIndexOf('\n') + 1;
-        const linePrefix = value.substring(lineStart, start);
-        
-        if (linePrefix.startsWith('  ')) {
-          const newValue = value.substring(0, lineStart) + value.substring(lineStart + 2);
-          handleCodeChange(newValue);
-          setTimeout(() => {
-            textarea.selectionStart = textarea.selectionEnd = Math.max(lineStart, start - 2);
-          }, 0);
-        } else if (linePrefix.startsWith('\t')) {
-          const newValue = value.substring(0, lineStart) + value.substring(lineStart + 1);
-          handleCodeChange(newValue);
-          setTimeout(() => {
-            textarea.selectionStart = textarea.selectionEnd = Math.max(lineStart, start - 1);
-          }, 0);
-        }
-      } else {
-        // Tab: Add indentation (2 spaces)
-        const newValue = value.substring(0, start) + '  ' + value.substring(end);
-        handleCodeChange(newValue);
-        setTimeout(() => {
-          textarea.selectionStart = textarea.selectionEnd = start + 2;
-        }, 0);
-      }
-    }
-    
-    // Handle Enter for auto-indentation
-    if (e.key === 'Enter') {
-      e.preventDefault();
-      const textarea = e.currentTarget;
-      const start = textarea.selectionStart;
-      const end = textarea.selectionEnd;
-      const value = textarea.value;
-      
-      const beforeCursor = value.substring(0, start);
-      const lineStart = beforeCursor.lastIndexOf('\n') + 1;
-      const currentLine = value.substring(lineStart, start);
-      const indentMatch = currentLine.match(/^(\s*)/);
-      const indent = indentMatch ? indentMatch[1] : '';
-      
-      const trimmedLine = currentLine.trim();
-      const needsExtraIndent = trimmedLine.endsWith('{') || trimmedLine.endsWith(':') || trimmedLine.endsWith('(');
-      const extraIndent = needsExtraIndent ? '  ' : '';
-      
-      const newValue = value.substring(0, start) + '\n' + indent + extraIndent + value.substring(end);
-      handleCodeChange(newValue);
-      
-      const newCursorPos = start + 1 + indent.length + extraIndent.length;
-      setTimeout(() => {
-        textarea.selectionStart = textarea.selectionEnd = newCursorPos;
-      }, 0);
-    }
-  };
-
   return (
     <div className="space-y-4">
       {/* Code editor */}
       <div>
         <label className="block text-sm text-neutral-400 mb-2">Code</label>
-        <textarea
+        <CodeEditor
           value={element.props.code}
-          onChange={(e) => handleCodeChange(e.target.value)}
-          onKeyDown={handleKeyDown}
+          onChange={handleCodeChange}
           onBlur={saveToHistory}
-          className="w-full h-32 bg-neutral-900 text-white text-sm font-mono p-3 rounded resize-y"
-          spellCheck={false}
-          style={{ tabSize: 2 }}
+          language={element.props.language}
+          theme={element.props.theme}
         />
       </div>