diff --git a/.gitignore b/.gitignore
index ea5a08b..7309b3c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -47,3 +47,6 @@ htmlcov/
 # Data
 data/processed/
 data/raw/
+
+# Workspace
+workspace/
diff --git a/backend/managers/debug_logger.py b/backend/managers/debug_logger.py
index e69de29..477dc8f 100644
--- a/backend/managers/debug_logger.py
+++ b/backend/managers/debug_logger.py
@@ -0,0 +1,9 @@
+class DebugLogger:
+    def __init__(self):
+        self.logs = []
+    
+    def log(self, message):
+        self.logs.append(message)
+    
+    def get_logs(self):
+        return self.logs    
\ No newline at end of file
diff --git a/backend/managers/execution_engine.py b/backend/managers/execution_engine.py
index e69de29..0b1bd92 100644
--- a/backend/managers/execution_engine.py
+++ b/backend/managers/execution_engine.py
@@ -0,0 +1,41 @@
+import subprocess
+from pathlib import Path
+
+RUN_TIMEOUT = 30  # seconds
+
+class ExecutionEngine:
+    def __init__(self):
+        pass
+    
+    def run_code(self, active_file: Path) -> dict:
+        suffix = active_file.suffix
+        current_dir = active_file.parent.resolve()
+
+        if suffix == ".py":
+            cmd = ["py", active_file.name]
+        elif suffix == ".tex":
+            cmd = [
+                "pdflatex",
+                "-interaction=nonstopmode",
+                f"-output-directory={current_dir}",
+                active_file.name,
+            ]
+        else:
+            return {"stdout": "", "stderr": f"Unsupported file type: {suffix}", "rc": 1}
+    
+        try:
+            proc = subprocess.run(
+                cmd,
+                cwd=current_dir,
+                capture_output=True,
+                text=True,
+                timeout=RUN_TIMEOUT,
+            )
+            return {"stdout": proc.stdout, "stderr": proc.stderr, "rc": proc.returncode}
+        
+        except subprocess.TimeoutExpired:
+            return {"stdout": "", "stderr": f"Timed out after {RUN_TIMEOUT}s", "rc": -1}
+        except FileNotFoundError as e:
+            return {"stdout": "", "stderr": str(e), "rc": -1}
+        except Exception as e:
+            return {"stdout": "", "stderr": str(e), "rc": -1}
\ No newline at end of file
diff --git a/backend/managers/file_manager.py b/backend/managers/file_manager.py
index e392dfc..a25e8d8 100644
--- a/backend/managers/file_manager.py
+++ b/backend/managers/file_manager.py
@@ -5,13 +5,150 @@ WORKSPACE = Path("workspace")
 WORKSPACE.mkdir(exist_ok=True)
 
 class FileManager:
-    def __init__(self, base_path=Path("workspace")):
+    def __init__(self, base_path=Path("workspace")) -> None:
         self.base_path = Path(base_path)
         self.base_path.mkdir(exist_ok=True)
 
-    # read_file content
+    def create_folder(self, relative_path: str, name: str) -> bool:
+        if not name:
+            st.error(f"Invalid folder name: {name}")
+            return False
+        
+        if "/" in name or "\\" in name:
+            st.error(f"Invalid folder name (no slashes allowed): {name}")
+            return False
+        
+        name = Path(name)
+        if relative_path:
+            relative_path = Path(relative_path)
+        else:
+            relative_path = Path()
 
-    # save_file content
+        folder_path = (self.base_path / relative_path / name).resolve()
+
+        if not str(folder_path).startswith(str(self.base_path.resolve())):
+            st.error(f"Access denied: {relative_path}")
+            return False
+        
+        try:
+            folder_path.mkdir(exist_ok=False)
+            return True
+        except FileExistsError:
+            st.warning(f"Folder already exists: {relative_path}")
+            return False
+        except Exception as e:
+            st.error(f"Error creating folder {relative_path}: {str(e)}")
+            return False
+
+    def create_file(self, relative_path: str, name: str) -> bool:        
+        if not name or name.strip() == ""  :
+            st.error(f"Invalid file name: {name}")
+            return False
+        
+        name = Path(name)
+        if not name.suffix:
+            name = name.with_suffix(".txt")  # Default to .txt if no extension provided
+        
+        if relative_path:
+            relative_path = Path(relative_path)
+        else:
+            relative_path = Path()
+
+        file_path = (self.base_path / relative_path / name).resolve()
+
+        if not str(file_path).startswith(str(self.base_path.resolve())):
+            st.error(f"Access denied: {relative_path}")
+            return False
+        
+        try:
+            file_path.touch(exist_ok=False)
+            return True
+        except FileExistsError:
+            st.warning(f"File already exists: {relative_path}")
+            return False
+        except Exception as e:
+            st.error(f"Error creating file {relative_path}: {str(e)}")
+            return False
+
+    def read_file(self, relative_path: Path) -> str:
+        file_path = (relative_path).resolve()
+
+        if not file_path.exists():
+            st.error(f"File not found: {relative_path}")
+            return ""
+        if not file_path.is_file():
+            st.error(f"Path is not a file: {relative_path}")
+            return ""
+        if not str(file_path).startswith(str(self.base_path.resolve())):
+            st.error(f"Access denied: {relative_path}")
+            return ""
+        
+        try:
+            with open(file_path, "r") as f:
+                return f.read()
+        except FileNotFoundError:
+            st.error(f"File not found: {relative_path}")
+            return ""
+        except Exception as e:
+            st.error(f"Error reading file {relative_path}: {str(e)}")
+            return ""
+
+    def save_file(self, relative_path: str, content: str):
+        file_path = (Path(relative_path)).resolve()
+
+        if not str(file_path).startswith(str(self.base_path.resolve())):
+            st.error(f"Access denied: {relative_path}")
+            return False
+        
+        try:
+            with open(file_path, "w") as f:
+                f.write(content)
+            return True
+        except Exception as e:
+            st.error(f"Error saving file {relative_path}: {str(e)}")
+            return False
+    
+    def rename_file(self, old_relative_path: str, new_name: str) -> bool:
+        if not new_name or new_name.strip() == "":
+            st.error(f"Invalid file name: {new_name}")
+            return False
+        
+        file_type = Path(old_relative_path).suffix
+        new_name = Path(new_name)
+
+        if not Path(new_name).suffix == file_type:
+            new_name = Path(new_name).with_suffix(file_type)  # Ensure the file extension remains the same
+        
+        old_file_path = (self.base_path / Path(old_relative_path)).resolve()
+        new_file_path = old_file_path.parent / new_name
+
+        if not str(old_file_path).startswith(str(self.base_path.resolve())) or not str(new_file_path).startswith(str(self.base_path.resolve())):
+            st.error(f"Access denied: {old_relative_path}")
+            return False
+        
+        try:
+            old_file_path.rename(new_file_path)
+            return True
+        except FileNotFoundError:
+            st.error(f"File not found: {old_relative_path}")
+            return False    
+    
+    def delete_file(self, relative_path):
+        file_path = (self.base_path / relative_path).resolve()
+
+        if not str(file_path).startswith(str(self.base_path.resolve())):
+            st.error(f"Access denied: {relative_path}")
+            return False
+        
+        try:
+            file_path.unlink()
+            return True
+        except FileNotFoundError:
+            st.error(f"File not found: {relative_path}")
+            return False
+        except Exception as e:
+            st.error(f"Error deleting file {relative_path}: {str(e)}")
+            return False
 
     def get_file_tree(self):
         def build_tree(path: Path):
diff --git a/frontend/editor.py b/frontend/editor.py
index 7a22c59..79f9b98 100644
--- a/frontend/editor.py
+++ b/frontend/editor.py
@@ -1,15 +1,43 @@
 import streamlit as st
 import streamlit_ace as st_ace
 from pathlib import Path
-from backend.managers.file_manager import FileManager
 
-def render_editor():
-    LANG_MAP = {
+from backend.managers.file_manager import FileManager
+from backend.managers.execution_engine import ExecutionEngine
+from backend.managers.debug_logger import DebugLogger
+
+LANG_MAP = {
     ".py": "python", ".tex": "latex", ".js": "javascript",
     ".html": "html", ".css": "css", ".sh": "bash",
     ".json": "json", ".yaml": "yaml", ".yml": "yaml"
     }
 
+def run_active_file():
+    active_file = st.session_state.active_file
+
+    if not active_file:
+        st.warning("No active file to run.")
+        return
+    
+    execution_engine = ExecutionEngine()
+    debug_logger = DebugLogger()
+
+    debug_logger.log(f"Executing code from {active_file}...")
+
+    with st.spinner(f"Running {Path(active_file).name}..."):
+        output = execution_engine.run_code(Path(active_file))
+
+    debug_logger.log("Execution completed.")
+    
+    st.session_state.code_execution_output = {
+        "stdout": output["stdout"],
+        "stderr": output["stderr"],
+        "return_code": output["rc"]
+    }
+    result = st.session_state.code_execution_output
+    return result
+
+def render_editor():
     st.subheader("Code Editor")
 
     if not st.session_state.open_files:
@@ -26,26 +54,34 @@ def render_editor():
             st.session_state.active_file = file_path
             
             if file_path not in st.session_state.files_content:
-                st.session_state.files_content[file_path] = fm.read_file(file_path)
+                st.session_state.files_content[file_path] = fm.read_file(Path(file_path))
             
-            file_language = LANG_MAP.get(file_path.suffix, "text")
+            file_language = LANG_MAP.get(Path(file_path).suffix, "text")
         
-            code = st_ace(
+            code = st_ace.st_ace(
                 value=st.session_state.files_content[file_path],
                 language=file_language,
                 theme="monokai",
-                key=f"code_editor_{file_path}"
+                key=f"code_editor_{file_path}",
+                auto_update=True,
+                height=400,
+                tab_size=4,
+                font_size=14,
+                show_gutter=True,
+                show_print_margin=False,
+                wrap=True
             )
 
             st.session_state.files_content[file_path] = code
 
-            col1, col2 = st.columns([1, 1])
-            with col1:
+            cols = st.columns([1, 1, 1, 1])
+            with cols[0]:
                 if st.button("Save Changes", key=f"save_{file_path}"):
-                    fm.save_file(file_path, st.session_state.files_content[file_path])
-                    st.success("File saved successfully!")
+                    content = st.session_state.files_content[file_path]
+                    if fm.save_file(file_path, content):
+                        st.success("File saved successfully!")
     
-            with col2:
+            with cols[1]:
                 if st.button("Close File", key=f"close_{file_path}"):
                     st.session_state.open_files.remove(file_path)
                     del st.session_state.files_content[file_path]
@@ -59,6 +95,58 @@ def render_editor():
                         )
                     
                     st.rerun()  # Refresh the page to update the UI
+            with cols[2]:
+                if st.button("Rename File", key=f"rename_{file_path}"):
+                    new_name = st.text_input("New File Name", key=f"new_name_{file_path}")
+                    if "/" in new_name or "\\" in new_name:
+                        st.warning("Do not include slashes in names!")
+                    elif new_name:
+                        try:
+                            fm.rename_file(file_path, new_name)
+                            st.success(f"File renamed to '{new_name}' successfully!")
+                            st.rerun()
+                        except Exception as e:
+                            st.error(f"Error renaming file: {e}")
+            
+            with cols[3]:
+                if st.button("Delete File", key=f"delete_{file_path}"):
+                    try:
+                        fm.delete_file(file_path)
+                        st.success(f"File '{Path(file_path).name}' deleted successfully!")
+                        st.rerun()
+                    except Exception as e:
+                        st.error(f"Error deleting file: {e}")
+    
+    if st.button("▶ Run Code", key="run_code"):
+        result = run_active_file()
+        if not result:
+            st.stop()
+
+        st.subheader("Execution Output")
+
+        if result["return_code"] == 0:
+            st.success(f"Exit code: {result['return_code']}")
+        else:
+            st.error(f"Exit code: {result['return_code']}")
+        
+        if result["stdout"]:
+            st.text_area(
+                "Standard Output", 
+                value=result["stdout"], 
+                height=200,
+                disabled=True, 
+                key="run_stdout")
+            
+        if result["stderr"]:
+            st.text_area(
+                "Standard Error", 
+                value=result["stderr"], 
+                height=200,
+                disabled=True, 
+                key="run_stderr")
+        if not result["stdout"] and not result["stderr"]:
+            st.info("No output produced by the code execution.")
+
     
     
 if __name__ == "__main__":
diff --git a/frontend/sidebar.py b/frontend/sidebar.py
index 98dfd26..f0720d3 100644
--- a/frontend/sidebar.py
+++ b/frontend/sidebar.py
@@ -4,100 +4,168 @@ from backend.managers.file_manager import FileManager
 
 fm = FileManager()
 
+SUFFIX_MAP = {
+    ".py": "🐍",     # Python
+    ".js": "🟨",     # JavaScript (Gelbes Quadrat/Logo)
+    ".html": "🌐",   # HTML (Web)
+    ".css": "🎨",    # CSS (Styling)
+    ".json": "📦",   # JSON (Datenpaket)
+    ".yaml": "⚙️",   # YAML (Konfiguration)
+    ".yml": "⚙️",    # YAML
+    ".sh": "🐚",     # Bash/Shell (Shell-Icon)
+    ".md": "📝",     # Markdown
+    ".txt": "📄",    # Text
+    ".tex": "📑",    # LaTeX
+    ".c": "🔵",      # C (Blaues Icon)
+    ".cpp": "🔷",    # C++
+    ".java": "☕",   # Java
+    "folder": "📁",  # Ordner
+    "default": "📄"  # Unbekannt
+}
+
 def render_filetree(tree, parent_path=Path()):
     for name, content in sorted(tree.items()):
         full_path = parent_path / name
 
         if isinstance(content, dict):  # Directory
-            with st.sidebar.expander(f"📁 {name}", expanded=False):
-                render_filetree(content, full_path)
-        else:  # File
-            cols= st.sidebar.columns([3, 1])
-            with cols[0]:
-                if st.sidebar.button(f"📄 {name}", key=str(full_path)):
-                    abs_path = fm.base_path / full_path
-    
-                    if str(abs_path) not in st.session_state.open_files:
-                        st.session_state.open_files.append(str(abs_path))
-    
-                    st.session_state.active_file = str(abs_path)
+            disp_name = name if len(name) <= 13 else (name[:10] + "...")
             
-            with cols[1]:
-                show_options_key = f"show_options_{full_path}"
-                if st.button("...", key=show_options_key):
-                    st.session_state[show_options_key] = not st.session_state.get(show_options_key, False)
-
-                if st.session_state.get(show_options_key, False):
-                    action = st.selectbox("", ["", "Rename", "Delete"], key=f"action_{full_path}", index=0)
+            with st.expander(f"📁 {disp_name}", expanded=False):                
+                render_filetree(content, full_path)
+                with st.popover("+", key=f"popover_{full_path}"):
+                    st.write(f"**Create in {name}**")
+                    action = st.radio("Action", ["New File", "New Folder"], key=f"radio_{full_path}", label_visibility="collapsed")
+                    new_name = st.text_input("Name", key=f"input_{full_path}")
                     
-                    if action == "Delete":
-                        st.warning("Are you sure you want to delete this file?")
-                        if st.button("Yes, delete file", key=f"confirm_delete_{full_path}"):
-                            try:
-                                (fm.base_path / full_path).unlink()
-                                st.experimental_rerun()
-                            except Exception as e:
-                                st.error(f"Error deleting file: {e}")
-                    
-                    elif action == "Rename":
-                        new_name = st.text_input("New Name", key=f"rename_{full_path}")
+                    if st.button("Create", key=f"btn_{full_path}"):
                         if "/" in new_name or "\\" in new_name:
                             st.warning("Do not include slashes in names!")
-                        elif new_name:
-                            new_path = (fm.base_path / full_path.parent / new_name)
-                            try:
-                                (fm.base_path / full_path).rename(new_path)
-                                st.experimental_rerun()
-                            except Exception as e:
-                                st.error(f"Error renaming file: {e}")
+                        elif new_name and action == "New Folder":
+                            fm.create_folder(str(full_path), new_name)
+                            st.success(f"Folder {new_name} created!")
+                            st.rerun()
+                        elif new_name and action == "New File":
+                            fm.create_file(str(full_path), new_name)
+                            st.success(f"File {new_name} created!")
+                            st.rerun()
+                
+        else:  # File  
+                suffix = Path(name).suffix 
+                icon = SUFFIX_MAP.get(suffix, SUFFIX_MAP["default"])  
+                disp_name = name if len(name) <= 13 else (name[:10] + "...")
+
+                col_file, col_opt = st.columns([0.85, 0.15], gap="small")
+
+                with col_file:
+                    if st.button(f"{icon} {disp_name}", key=str(full_path)):
+                        abs_path = fm.base_path / full_path
+        
+                        if str(abs_path) not in st.session_state.open_files:
+                            st.session_state.open_files.append(str(abs_path))
+        
+                        st.session_state.active_file = str(abs_path)
+                        st.rerun()  
+                
+                with col_opt:
+                    with st.popover("⋮", key=f"opt_{full_path}"):
+
+                        delete_key = f"confirm_delete_{full_path}"
+                        if delete_key not in st.session_state:
+                            st.session_state[delete_key] = False
+
+                        if st.button(" **Delete** 🗑️", key=f"del_{full_path}"):
+                            st.session_state[delete_key] = True
+                            
+                        if st.session_state[delete_key]:
+                            st.warning(f"Delete {name}?")
+
+                            confirm_col, deny_col = st.columns([1, 1], gap="small")
+                            with confirm_col:
+                                if st.button("✔", key=f"yes_{full_path}"):
+                                    try:
+                                        fm.delete_file(str(full_path))
+                                        st.session_state[delete_key] = False
+                                        st.rerun()
+                                    except Exception as e:
+                                        st.error(f"Error deleting file: {e}")
+                            with deny_col: 
+                                if st.button("✖", key=f"cancel_{full_path}"):
+                                    st.session_state[delete_key] = False
+                            
+                        rename_key = f"rename_mode_{full_path}"
+                        if rename_key not in st.session_state:
+                            st.session_state[rename_key] = False
+                        
+                        if st.button("**Rename** ✏️", key=f"ren_{full_path}"):
+                            st.session_state[rename_key] = True
+                        
+                        if st.session_state[rename_key]:
+                            new_name = st.text_input("New Name", key=f"input_ren_{full_path}")
+                        
+                            apply_col, cancel_col = st.columns([1, 1], gap="small")
+                            with apply_col:
+                                if st.button("Apply", key=f"apply_ren_{full_path}"):
+                                    try:
+                                        fm.rename_file(str(full_path), new_name)
+                                        st.session_state[rename_key] = False
+                                        st.rerun()
+                                    except Exception as e:
+                                        st.error(f"Error renaming file: {e}")
+
+                            with cancel_col:
+                                if st.button("Cancel", key=f"cancel_ren_{full_path}"):
+                                    st.session_state[rename_key] = False
 
 def render_sidebar():
     st.sidebar.title("Navigation")
     
-    navigation_section = st.sidebar.container()
     file_explorer_section = st.sidebar.container()
+    navigation_section = st.sidebar.container()
+    
+    with file_explorer_section:
+        st.subheader("File Explorer")
+        tree = fm.get_file_tree()
+        workspace = st.container()
+        add_more = st.container()
 
+        with workspace:
+            if not tree:
+                st.info("Workspace is empty.")
+                
+            else:
+                render_filetree(tree)
+        
+        with add_more:
+            with st.popover("⚙️ Explorer_Options", key=f"popover_options"):
+                action = st.radio(
+                    "Action", 
+                    ["New File", "New Folder"], 
+                    key=f"radio_explorer_options", 
+                    label_visibility="collapsed")
+                
+                new_name = st.text_input("Name", key=f"input_explorer_options")
+                
+                if st.button("Create", key=f"btn_create_file_or_folder"):
+                    if "/" in new_name or "\\" in new_name:
+                        st.warning("Do not include slashes in names!")
+                    elif new_name:
+                        if action == "New Folder":
+                            fm.create_folder("", new_name)
+                        else:
+                            fm.create_file("", new_name)
+                        st.success(f"{action} created!")
+                        st.rerun()
+    
+    st.sidebar.markdown("---")
+    
     with navigation_section:
+        st.sidebar.subheader("Options")
         options = ["Code Editor", "Chat with AI Assistant"]
         choice = []
         
         for option in options:
             if st.sidebar.checkbox(option):
                 choice.append(option)
-    
-    with file_explorer_section:
-        st.sidebar.subheader("File Explorer")
-        tree = fm.get_file_tree()
-        if not tree:
-            st.sidebar.info("Workspace is empty.")
-        else:
-            render_filetree(tree)
-        
-        st.sidebar.markdown("---")
-        st.sidebar.write("Manage Files & Folders")
-
-        # Create Folder
-        new_folder_name = st.sidebar.text_input("New Folder Name", key="new_folder_name")
-        if "/" in new_folder_name or "\\" in new_folder_name:
-            st.warning("Do not include slashes in names!")
-        elif st.sidebar.button("Create Folder", key="create_folder") and new_folder_name:
-            new_folder_path = fm.base_path / new_folder_name
-            new_folder_path.mkdir(exist_ok=True)
-            st.success(f"Folder '{new_folder_name}' created successfully!")
-            st.experimental_rerun()
-        
-        # Create File
-        new_file_name = st.sidebar.text_input("New File Name", key="new_file_name")
-        if "/" in new_file_name or "\\" in new_file_name:
-            st.warning("Do not include slashes in names!")
-        elif st.sidebar.button("Create File", key="create_file") and new_file_name:
-            new_file_path = fm.base_path / new_file_name
-            new_file_path.touch(exist_ok=True)
-            st.success(f"File '{new_file_name}' created successfully!")
-            st.experimental_rerun()
-        
-
-    
     return choice
 
 if __name__ == "__main__":
diff --git a/frontend/state.py b/frontend/state.py
index 0b0f27d..4090932 100644
--- a/frontend/state.py
+++ b/frontend/state.py
@@ -1,6 +1,9 @@
 import streamlit as st
 
 def init_state():
+    # Sidebar state initialization
+    
+
     # Editor state initialization
     if "open_files" not in st.session_state:
         st.session_state.open_files = []
@@ -16,6 +19,9 @@ def init_state():
     
     if "code_suggestions" not in st.session_state:
         st.session_state.code_suggestions = []
+
+    if "code_execution_output" not in st.session_state:
+        st.session_state.code_execution_output = ""
         
     # Chat state initialization
     if "chat_history" not in st.session_state: