diff --git a/.changeset/fn-8107-mobile-more-drawer-drag-dismiss.md b/.changeset/fn-8107-mobile-more-drawer-drag-dismiss.md
new file mode 100644
index 0000000000..c4fa0dfd61
--- /dev/null
+++ b/.changeset/fn-8107-mobile-more-drawer-drag-dismiss.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": patch
+---
+
+summary: Mobile "More" navigation drawer now closes with a swipe-down gesture.
+category: fix
+dev: Adds touch drag-to-dismiss to `.mobile-more-sheet` in MobileNavBar; dismiss engages only when the sheet is scrolled to top or dragged by the handle so interior scrolling is preserved.
diff --git a/packages/dashboard/app/components/MobileNavBar.css b/packages/dashboard/app/components/MobileNavBar.css
index 95cdb5d50f..12cd2c2a3c 100644
--- a/packages/dashboard/app/components/MobileNavBar.css
+++ b/packages/dashboard/app/components/MobileNavBar.css
@@ -197,9 +197,19 @@ Wrap every tab icon in the same token-sized icon slot and keep unread/pending do
   max-height: 85vh;
   overflow-y: auto;
   -webkit-overflow-scrolling: touch;
+  touch-action: pan-y;
+  transition: transform var(--transition-fast);
   animation: mobile-more-sheet-in 0.25s ease;
 }
 
+.mobile-more-sheet--gesture-ready {
+  animation: none;
+}
+
+.mobile-more-sheet--dragging {
+  transition: none;
+}
+
 @keyframes mobile-more-backdrop-in {
   from { opacity: 0; }
   to { opacity: 1; }
@@ -211,11 +221,21 @@ Wrap every tab icon in the same token-sized icon slot and keep unread/pending do
 }
 
 .mobile-more-sheet-handle {
-  width: 36px;
-  height: 4px;
-  border-radius: 2px;
+  display: flex;
+  align-items: center;
+  justify-content: center;
+  box-sizing: border-box;
+  width: calc(var(--space-xl) + var(--space-md));
+  min-height: calc(var(--space-xl) + var(--space-md));
+  margin: 0 auto var(--space-sm);
+}
+
+.mobile-more-sheet-handle::after {
+  width: 100%;
+  height: calc(var(--space-xs) / 2);
+  border-radius: var(--radius-sm);
   background: var(--border);
-  margin: 0 auto 12px;
+  content: "";
 }
 
 .mobile-more-sheet-title {
diff --git a/packages/dashboard/app/components/MobileNavBar.tsx b/packages/dashboard/app/components/MobileNavBar.tsx
index b27467449c..ab24fcbd4a 100644
--- a/packages/dashboard/app/components/MobileNavBar.tsx
+++ b/packages/dashboard/app/components/MobileNavBar.tsx
@@ -173,7 +173,18 @@ export function MobileNavBar({
   const [isScriptsSubmenuOpen, setIsScriptsSubmenuOpen] = useState(false);
   const [scripts, setScripts] = useState<Record<string, string>>({});
   const [scriptsLoading, setScriptsLoading] = useState(false);
+  const [dragOffset, setDragOffset] = useState(0);
+  const [isSheetDragging, setIsSheetDragging] = useState(false);
+  const [hasSheetDragged, setHasSheetDragged] = useState(false);
   const navRef = useRef<HTMLElement | null>(null);
+  const sheetRef = useRef<HTMLDivElement | null>(null);
+  const sheetDragRef = useRef<{
+    startY: number;
+    startedAt: number;
+    eligible: boolean;
+    startedOnHandle: boolean;
+  } | null>(null);
+  const dragOffsetRef = useRef(0);
 
   const scriptEntries = useMemo(
     () => Object.entries(scripts).sort(([a], [b]) => a.localeCompare(b)),
@@ -203,7 +214,83 @@ export function MobileNavBar({
     };
   }, [isScriptsSubmenuOpen, projectId]);
 
-  const closeMore = useCallback(() => setIsMoreOpen(false), []);
+  const resetSheetDrag = useCallback(() => {
+    sheetDragRef.current = null;
+    dragOffsetRef.current = 0;
+    setDragOffset(0);
+    setIsSheetDragging(false);
+  }, []);
+
+  const closeMore = useCallback(() => {
+    resetSheetDrag();
+    setHasSheetDragged(false);
+    setIsMoreOpen(false);
+  }, [resetSheetDrag]);
+
+  /*
+  FNXC:MobileNav 2026-07-16-12:00:
+  The mobile More drawer must dismiss when a user drags down from its top or grab handle.
+  Keep scrollTop===0 as the body-drag guard so a scrolled sheet retains normal interior
+  scrolling; the non-passive native listener can cancel iOS Safari and Android Chrome
+  overscroll only for that eligible downward dismissal gesture.
+  */
+  useEffect(() => {
+    const sheet = sheetRef.current;
+    if (!isMoreOpen || !sheet) return;
+
+    const onTouchMove = (event: TouchEvent) => {
+      const drag = sheetDragRef.current;
+      const touch = event.touches[0];
+      if (!drag || !touch) return;
+
+      const offset = Math.max(0, touch.clientY - drag.startY);
+      const canDismiss = drag.eligible && (drag.startedOnHandle || sheet.scrollTop <= 0);
+      if (offset === 0 || !canDismiss) return;
+
+      event.preventDefault();
+      dragOffsetRef.current = offset;
+      setHasSheetDragged(true);
+      setIsSheetDragging(true);
+      setDragOffset(offset);
+    };
+
+    sheet.addEventListener("touchmove", onTouchMove, { passive: false });
+    return () => sheet.removeEventListener("touchmove", onTouchMove);
+  }, [isMoreOpen]);
+
+  const handleSheetTouchStart = useCallback((event: React.TouchEvent<HTMLDivElement>) => {
+    const sheet = sheetRef.current;
+    const touch = event.touches[0];
+    if (!sheet || !touch) return;
+
+    const target = event.target instanceof Element ? event.target : null;
+    const startedOnHandle = Boolean(target?.closest(".mobile-more-sheet-handle"));
+    sheetDragRef.current = {
+      startY: touch.clientY,
+      startedAt: Date.now(),
+      eligible: startedOnHandle || sheet.scrollTop <= 0,
+      startedOnHandle,
+    };
+    dragOffsetRef.current = 0;
+    setDragOffset(0);
+    setIsSheetDragging(false);
+  }, []);
+
+  const finishSheetDrag = useCallback((event: React.TouchEvent<HTMLDivElement>) => {
+    const sheet = sheetRef.current;
+    const drag = sheetDragRef.current;
+    const touch = event.changedTouches[0];
+    const offset = dragOffsetRef.current;
+    const elapsed = drag ? Math.max(1, Date.now() - drag.startedAt) : 1;
+    const sheetHeight = sheet?.getBoundingClientRect().height ?? 0;
+    const dismissDistance = Math.max(100, sheetHeight / 4);
+    const shouldDismiss = Boolean(drag?.eligible && offset > 0 && (offset >= dismissDistance || offset / elapsed >= 0.6));
+
+    resetSheetDrag();
+    if (shouldDismiss && touch) {
+      closeMore();
+    }
+  }, [closeMore, resetSheetDrag]);
 
   const handleMoreAction = useCallback(
     (callback?: () => void) => {
@@ -218,13 +305,13 @@ export function MobileNavBar({
 
     const onKeyDown = (event: KeyboardEvent) => {
       if (event.key === "Escape") {
-        setIsMoreOpen(false);
+        closeMore();
       }
     };
 
     document.addEventListener("keydown", onKeyDown);
     return () => document.removeEventListener("keydown", onKeyDown);
-  }, [isMoreOpen]);
+  }, [closeMore, isMoreOpen]);
 
   useLayoutEffect(() => {
     const navEl = navRef.current;
@@ -492,8 +579,15 @@ export function MobileNavBar({
             className="mobile-more-sheet-backdrop"
             onClick={closeMore}
           />
-          <div className="mobile-more-sheet">
-            <div className="mobile-more-sheet-handle" />
+          <div
+            ref={sheetRef}
+            className={`mobile-more-sheet${isSheetDragging ? " mobile-more-sheet--dragging" : ""}${hasSheetDragged ? " mobile-more-sheet--gesture-ready" : ""}`}
+            style={{ transform: `translateY(${dragOffset}px)` }}
+            onTouchStart={handleSheetTouchStart}
+            onTouchEnd={finishSheetDrag}
+            onTouchCancel={resetSheetDrag}
+          >
+            <div className="mobile-more-sheet-handle" aria-hidden="true" />
             <div className="mobile-more-sheet-title">{t("nav.moreSheetTitle", "Navigate")}</div>
 
             {shellConnectionControl ? (
diff --git a/packages/dashboard/app/components/__tests__/MobileNavBar.test.tsx b/packages/dashboard/app/components/__tests__/MobileNavBar.test.tsx
index b7794bc14c..73c29cce25 100644
--- a/packages/dashboard/app/components/__tests__/MobileNavBar.test.tsx
+++ b/packages/dashboard/app/components/__tests__/MobileNavBar.test.tsx
@@ -1,6 +1,6 @@
 import { readFileSync } from "fs";
 import { resolve } from "path";
-import { beforeEach, describe, expect, it, vi } from "vitest";
+import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
 import { fireEvent, render, screen, waitFor } from "@testing-library/react";
 import { MobileNavBar } from "../MobileNavBar";
 import { MOBILE_MEDIA_QUERY } from "../../hooks/useViewportMode";
@@ -131,6 +131,10 @@ describe("MobileNavBar", () => {
     mockViewport("mobile");
   });
 
+  afterEach(() => {
+    vi.useRealTimers();
+  });
+
   it("renders seven top-level tab buttons (command center + tasks + agents + missions + chat + mailbox + more) and keeps skills in More when showSkillsTab is true", () => {
     render(<MobileNavBar {...createDefaultProps()} showSkillsTab={true} />);
 
@@ -899,6 +903,136 @@ describe("MobileNavBar", () => {
     });
   });
 
+  describe("More-sheet drag dismissal", () => {
+    const openSheet = (container: HTMLElement) => {
+      fireEvent.click(screen.getByTestId("mobile-nav-tab-more"));
+      const sheet = container.querySelector<HTMLDivElement>(".mobile-more-sheet");
+      if (!sheet) throw new Error("Expected the More sheet to open");
+      Object.defineProperty(sheet, "getBoundingClientRect", {
+        configurable: true,
+        value: () => ({ height: 400 }),
+      });
+      return sheet;
+    };
+
+    const startDrag = (target: Element, startY = 100) => {
+      fireEvent.touchStart(target, { touches: [{ clientY: startY }] });
+    };
+
+    const moveDrag = (sheet: Element, currentY: number) =>
+      fireEvent.touchMove(sheet, { touches: [{ clientY: currentY }] });
+
+    const endDrag = (sheet: Element, endY: number) => {
+      fireEvent.touchEnd(sheet, { changedTouches: [{ clientY: endY }] });
+    };
+
+    it("dismisses a top-anchored downward drag past the distance threshold", () => {
+      const { container } = render(<MobileNavBar {...createDefaultProps()} />);
+      const sheet = openSheet(container);
+
+      startDrag(sheet);
+      expect(moveDrag(sheet, 300)).toBe(false);
+      endDrag(sheet, 300);
+
+      expect(container.querySelector(".mobile-more-sheet")).toBeNull();
+    });
+
+    it("preserves interior scrolling and does not prevent its downward touchmove", () => {
+      const { container } = render(<MobileNavBar {...createDefaultProps()} />);
+      const sheet = openSheet(container);
+      sheet.scrollTop = 20;
+
+      startDrag(sheet);
+      expect(moveDrag(sheet, 300)).toBe(true);
+      endDrag(sheet, 300);
+
+      expect(container.querySelector(".mobile-more-sheet")).not.toBeNull();
+    });
+
+    it("snaps back after a slow below-threshold drag", () => {
+      vi.useFakeTimers();
+      vi.setSystemTime(new Date("2026-07-16T12:00:00Z"));
+      const { container } = render(<MobileNavBar {...createDefaultProps()} />);
+      const sheet = openSheet(container);
+
+      startDrag(sheet);
+      moveDrag(sheet, 150);
+      vi.advanceTimersByTime(500);
+      endDrag(sheet, 150);
+
+      expect(container.querySelector(".mobile-more-sheet")).not.toBeNull();
+      expect(sheet.style.transform).toBe("translateY(0px)");
+    });
+
+    it("dismisses when a handle-anchored drag starts while the sheet is scrolled", () => {
+      const { container } = render(<MobileNavBar {...createDefaultProps()} />);
+      const sheet = openSheet(container);
+      sheet.scrollTop = 20;
+      const handle = sheet.querySelector(".mobile-more-sheet-handle");
+      expect(handle).not.toBeNull();
+
+      startDrag(handle!);
+      expect(moveDrag(sheet, 300)).toBe(false);
+      endDrag(sheet, 300);
+
+      expect(container.querySelector(".mobile-more-sheet")).toBeNull();
+    });
+
+    it("dismisses with the scripts submenu open without swallowing its normal toggle tap", async () => {
+      vi.mocked(fetchScripts).mockResolvedValue({});
+      const { container } = render(<MobileNavBar {...createDefaultProps()} />);
+      const sheet = openSheet(container);
+
+      fireEvent.click(screen.getByTestId("mobile-more-terminal-split-toggle"));
+      await waitFor(() => expect(screen.getByTestId("mobile-more-scripts-manage")).toBeInTheDocument());
+
+      startDrag(sheet);
+      moveDrag(sheet, 300);
+      endDrag(sheet, 300);
+      expect(container.querySelector(".mobile-more-sheet")).toBeNull();
+    });
+
+    it("never dismisses for an upward drag", () => {
+      const { container } = render(<MobileNavBar {...createDefaultProps()} />);
+      const sheet = openSheet(container);
+
+      startDrag(sheet, 300);
+      expect(moveDrag(sheet, 100)).toBe(true);
+      endDrag(sheet, 100);
+
+      expect(container.querySelector(".mobile-more-sheet")).not.toBeNull();
+    });
+
+    it("dismisses on a fast downward flick below the distance threshold", () => {
+      vi.useFakeTimers();
+      vi.setSystemTime(new Date("2026-07-16T12:00:00Z"));
+      const { container } = render(<MobileNavBar {...createDefaultProps()} />);
+      const sheet = openSheet(container);
+
+      startDrag(sheet);
+      moveDrag(sheet, 160);
+      vi.advanceTimersByTime(50);
+      endDrag(sheet, 160);
+
+      expect(container.querySelector(".mobile-more-sheet")).toBeNull();
+    });
+
+    it("resets a cancelled drag to the open position", () => {
+      const { container } = render(<MobileNavBar {...createDefaultProps()} />);
+      const sheet = openSheet(container);
+
+      startDrag(sheet);
+      moveDrag(sheet, 300);
+      expect(sheet.className).toContain("mobile-more-sheet--dragging");
+      expect(sheet.style.transform).toBe("translateY(200px)");
+
+      fireEvent.touchCancel(sheet);
+      expect(container.querySelector(".mobile-more-sheet")).not.toBeNull();
+      expect(sheet.className).not.toContain("mobile-more-sheet--dragging");
+      expect(sheet.style.transform).toBe("translateY(0px)");
+    });
+  });
+
   it("returns null when modalOpen is true", () => {
     const { container } = render(<MobileNavBar {...createDefaultProps()} modalOpen={true} />);
     expect(container.querySelector(".mobile-nav-bar")).toBeNull();