diff --git a/apps/web/src/apps/modules/layouts/components/header.layout.tsx b/apps/web/src/apps/modules/layouts/components/header.layout.tsx
index 8920a2f..d50bc56 100644
--- a/apps/web/src/apps/modules/layouts/components/header.layout.tsx
+++ b/apps/web/src/apps/modules/layouts/components/header.layout.tsx
@@ -6,7 +6,6 @@ import {
   Text,
   useCoreAppShell,
   ActionIcon,
-  Indicator,
   Menu,
   Avatar,
   UnstyledButton,
@@ -14,6 +13,7 @@ import {
 } from '@repo/ui/components';
 import { Globe, Bell, HelpCircle, Settings, User, Briefcase, LogOut, ChevronDown } from 'lucide-react';
 import { AppStorageKey, secureStorage } from '../../../../core/storage/local';
+import { NotificationDropdown } from './notifications/notification-dropdown';
 
 // Dummy user data for preview
 const USER = {
@@ -60,11 +60,11 @@ export default function HeaderLayout() {
           <HelpCircle size={18} />
         </ActionIcon>
 
-        <Indicator inline size={9} offset={4} color="red" withBorder>
+        <NotificationDropdown>
           <ActionIcon variant="subtle" color="gray" size="lg" aria-label="Notifications">
             <Bell size={18} />
           </ActionIcon>
-        </Indicator>
+        </NotificationDropdown>
 
         <Menu shadow="md" width={260} position="bottom-end" radius="md" withArrow>
           <Menu.Target>
diff --git a/apps/web/src/apps/modules/layouts/components/notifications/notification-dropdown.tsx b/apps/web/src/apps/modules/layouts/components/notifications/notification-dropdown.tsx
new file mode 100644
index 0000000..087e7bf
--- /dev/null
+++ b/apps/web/src/apps/modules/layouts/components/notifications/notification-dropdown.tsx
@@ -0,0 +1,148 @@
+import { useState } from 'react';
+import { useTranslation } from '@repo/core-i18n';
+import {
+  Popover,
+  Group,
+  Text,
+  UnstyledButton,
+  ScrollArea,
+  Box,
+  Indicator,
+  Button,
+  Center,
+  Stack,
+  NavLink,
+} from '@repo/ui/components';
+import { BellOff } from 'lucide-react';
+
+interface NotificationItem {
+  id: string;
+  title: string;
+  description: string;
+  timestamp: string;
+  isRead: boolean;
+}
+
+interface NotificationDropdownProps {
+  children: React.ReactNode;
+}
+
+export function NotificationDropdown({ children }: NotificationDropdownProps) {
+  const { t } = useTranslation();
+  const [opened, setOpened] = useState(false);
+
+  const [notifications, setNotifications] = useState<NotificationItem[]>([
+    {
+      id: '1',
+      title: 'New User Registration',
+      description: 'John Doe has registered a new account in the system.',
+      timestamp: t('common:notifications_justNow'),
+      isRead: false,
+    },
+    {
+      id: '2',
+      title: 'System Update Completed',
+      description: 'The ERP database has been successfully updated to v2.4.',
+      timestamp: `2 ${t('common:notifications_hoursAgo')}`,
+      isRead: false,
+    },
+    {
+      id: '3',
+      title: 'Weekly Report Ready',
+      description: 'Your weekly financial summary is ready to be downloaded.',
+      timestamp: `5 ${t('common:notifications_hoursAgo')}`,
+      isRead: true,
+    },
+  ]);
+
+  const unreadCount = notifications.filter((n) => !n.isRead).length;
+
+  const handleMarkAllAsRead = () => {
+    setNotifications((prev) => prev.map((n) => ({ ...n, isRead: true })));
+  };
+
+  return (
+    <Popover opened={opened} onChange={setOpened} width={340} position="bottom-end" withArrow shadow="md" radius="md">
+      <Popover.Target>
+        {/* Trigger wrapped around the Bell icon */}
+        <Box onClick={() => setOpened((o) => !o)} style={{ cursor: 'pointer' }}>
+          <Indicator inline size={9} offset={4} color="red" withBorder disabled={unreadCount === 0}>
+            {children}
+          </Indicator>
+        </Box>
+      </Popover.Target>
+
+      <Popover.Dropdown p={0}>
+        <Group
+          justify="space-between"
+          px="md"
+          py="xs"
+          style={{ borderBottom: '1px solid var(--mantine-color-default-border)' }}
+        >
+          <Text fw={600} size="sm">
+            {t('common:notifications_title')}
+          </Text>
+          {unreadCount > 0 && (
+            <UnstyledButton onClick={handleMarkAllAsRead}>
+              <Text size="xs" c="blue" fw={500} style={{ '&:hover': { textDecoration: 'underline' } }}>
+                {t('common:notifications_markAllAsRead')}
+              </Text>
+            </UnstyledButton>
+          )}
+        </Group>
+
+        <ScrollArea.Autosize mah={300}>
+          {notifications.length === 0 ? (
+            <Center p="xl" style={{ minHeight: 150 }}>
+              <Stack align="center" gap="xs">
+                <BellOff size={32} style={{ opacity: 0.2 }} />
+                <Text size="sm" c="dimmed">
+                  {t('common:notifications_emptyState')}
+                </Text>
+              </Stack>
+            </Center>
+          ) : (
+            notifications.map((item) => (
+              <NavLink
+                key={item.id}
+                label={
+                  <Box>
+                    <Text size="sm" fw={item.isRead ? 500 : 600} lh={1.2} mb={4}>
+                      {item.title}
+                    </Text>
+                    <Text size="xs" c="dimmed" lh={1.3} mb={6} style={{ whiteSpace: 'normal' }}>
+                      {item.description}
+                    </Text>
+                    <Text size="xs" c="dimmed" style={{ opacity: 0.7 }}>
+                      {item.timestamp}
+                    </Text>
+                  </Box>
+                }
+                leftSection={
+                  <Box style={{ alignSelf: 'flex-start', marginTop: '4px' }}>
+                    <Indicator size={8} color="blue" disabled={item.isRead}>
+                      <Box w={8} h={8} />
+                    </Indicator>
+                  </Box>
+                }
+                active={!item.isRead}
+                variant="light"
+                style={{
+                  borderBottom: '1px solid var(--mantine-color-default-border)',
+                }}
+              />
+            ))
+          )}
+        </ScrollArea.Autosize>
+
+        {notifications.length > 0 && (
+          <Box p="xs">
+            <Button variant="light" color="gray" fullWidth size="xs" radius="md">
+              {t('common:notifications_viewAll')}
+            </Button>
+          </Box>
+        )}
+      </Popover.Dropdown>
+    </Popover>
+  );
+}
diff --git a/packages/core-i18n/src/locales/en/common.json b/packages/core-i18n/src/locales/en/common.json
index 498ac39..2646c98 100644
--- a/packages/core-i18n/src/locales/en/common.json
+++ b/packages/core-i18n/src/locales/en/common.json
@@ -19,6 +19,14 @@
     "switchWorkspace": "Switch Workspace",
     "signOut": "Sign Out",
     "english": "English",
-    "indonesian": "Indonesia"
+    "indonesian": "Indonesia",
+    "notifications_title": "Notifications",
+    "notifications_unread": "Unread",
+    "notifications_all": "All",
+    "notifications_markAllAsRead": "Mark all as read",
+    "notifications_viewAll": "View all notifications",
+    "notifications_emptyState": "No new notifications",
+    "notifications_justNow": "Just now",
+    "notifications_hoursAgo": "hours ago"
   }
 }
\ No newline at end of file
diff --git a/packages/core-i18n/src/locales/id/common.json b/packages/core-i18n/src/locales/id/common.json
index 0fe528e..0f14717 100644
--- a/packages/core-i18n/src/locales/id/common.json
+++ b/packages/core-i18n/src/locales/id/common.json
@@ -19,6 +19,14 @@
     "switchWorkspace": "Ganti Ruang Kerja",
     "signOut": "Keluar",
     "english": "Inggris",
-    "indonesian": "Indonesia"
+    "indonesian": "Bahasa Indonesia",
+    "notifications_title": "Notifikasi",
+    "notifications_unread": "Belum dibaca",
+    "notifications_all": "Semua",
+    "notifications_markAllAsRead": "Tandai semua dibaca",
+    "notifications_viewAll": "Lihat semua notifikasi",
+    "notifications_emptyState": "Tidak ada notifikasi baru",
+    "notifications_justNow": "Baru saja",
+    "notifications_hoursAgo": "jam lalu"
   }
 }
\ No newline at end of file