diff --git a/apps/web/src/apps/modules/layouts/components/sidebar.tsx b/apps/web/src/apps/modules/layouts/components/sidebar.tsx
index 0e8fabd..455ce93 100644
--- a/apps/web/src/apps/modules/layouts/components/sidebar.tsx
+++ b/apps/web/src/apps/modules/layouts/components/sidebar.tsx
@@ -1,6 +1,6 @@
 import { memo, useCallback, useMemo } from 'react';
 import { Link, useLocation } from 'react-router-dom';
-import { Box, NavLink, Stack, Tooltip, ActionIcon, Divider } from '@repo/ui/components';
+import { Box, NavLink, Stack, Tooltip, ActionIcon, Divider, Menu } from '@repo/ui/components';
 import { useCoreAppShell } from '@repo/ui/components';
 import { ChevronsLeft, ChevronsRight } from 'lucide-react';
 import type { MenuItemType } from '../types/menu.types';
@@ -28,50 +28,153 @@ interface SidebarMenuProps {
 
 interface MenuItemExpandedProps {
   item: MenuItemType;
-  isActive: boolean;
+  activeKeys: Set<string>;
 }
 
-const MenuItemExpanded = memo(function MenuItemExpanded({ item, isActive }: MenuItemExpandedProps) {
+const MenuItemExpanded = memo(function MenuItemExpanded({ item, activeKeys }: MenuItemExpandedProps) {
   const Icon = item.icon;
+  const isActive = activeKeys.has(item.key);
+  const hasChildren = item.children && item.children.length > 0;
+  
+  const isExactActive = isActive && !hasChildren;
+  const isParentActive = isActive && hasChildren;
+
   return (
     <NavLink
-      component={Link}
-      to={item.path}
+      component={hasChildren ? 'button' : (Link as any)}
+      to={hasChildren ? undefined : item.path}
       label={item.label}
       leftSection={<Icon size={18} />}
-      active={isActive}
+      active={isExactActive}
+      defaultOpened={isActive} // Auto-expand if active
       variant="light"
       styles={{
-        root: { borderRadius: 'var(--mantine-radius-md)' },
+        root: { 
+          borderRadius: 'var(--mantine-radius-md)',
+          color: isParentActive ? 'var(--mantine-primary-color-filled)' : undefined,
+        },
+        label: {
+          overflow: 'hidden',
+          textOverflow: 'ellipsis',
+          whiteSpace: 'nowrap',
+        },
       }}
-    />
+    >
+      {hasChildren &&
+        item.children!.map((child) => (
+          <MenuItemExpanded key={child.key} item={child} activeKeys={activeKeys} />
+        ))}
+    </NavLink>
   );
 });
 
 // ---------------------------------------------------------------------------
-// Individual Menu Item (Mini / Collapsed)
+// Individual Menu Item (Mini / Collapsed / Flyout)
 // ---------------------------------------------------------------------------
 
-interface MenuItemMiniProps {
+interface MenuItemFlyoutProps {
   item: MenuItemType;
-  isActive: boolean;
+  activeKeys: Set<string>;
+  isRoot?: boolean;
 }
 
-const MenuItemMini = memo(function MenuItemMini({ item, isActive }: MenuItemMiniProps) {
+const MenuItemFlyout = memo(function MenuItemFlyout({ item, activeKeys, isRoot = true }: MenuItemFlyoutProps) {
   const Icon = item.icon;
+  const isActive = activeKeys.has(item.key);
+  const hasChildren = item.children && item.children.length > 0;
+
+  // -- Leaf Item (No children) --
+  if (!hasChildren) {
+    if (isRoot) {
+      return (
+        <Tooltip label={item.label} position="right" withArrow transitionProps={{ transition: 'fade-right' }}>
+          <ActionIcon
+            component={Link as any}
+            to={item.path}
+            variant={isActive ? 'light' : 'subtle'}
+            color={isActive ? undefined : 'gray'}
+            size="lg"
+            aria-label={item.label}
+          >
+            <Icon size={20} />
+          </ActionIcon>
+        </Tooltip>
+      );
+    } else {
+      return (
+        <Menu.Item
+          component={Link as any}
+          to={item.path}
+          leftSection={<Icon size={14} />}
+          color={isActive ? 'var(--mantine-primary-color-filled)' : undefined}
+          styles={{
+            itemLabel: {
+              overflow: 'hidden',
+              textOverflow: 'ellipsis',
+              whiteSpace: 'nowrap',
+              maxWidth: 240,
+            },
+          }}
+        >
+          {item.label}
+        </Menu.Item>
+      );
+    }
+  }
+
+  // -- Parent Item (Has children) --
+  const Target = isRoot ? (
+    <ActionIcon
+      variant={isActive ? 'light' : 'subtle'}
+      color={isActive ? undefined : 'gray'}
+      size="lg"
+      aria-label={item.label}
+    >
+      <Icon size={20} />
+    </ActionIcon>
+  ) : (
+    <Menu.Item
+      leftSection={<Icon size={14} />}
+      rightSection={<ChevronsRight size={14} />}
+      color={isActive ? 'var(--mantine-primary-color-filled)' : undefined}
+      closeMenuOnClick={false} // Mencegah parent tertutup saat memunculkan Level 3
+      styles={{
+        itemLabel: {
+          overflow: 'hidden',
+          textOverflow: 'ellipsis',
+          whiteSpace: 'nowrap',
+          maxWidth: 240,
+        },
+      }}
+    >
+      {item.label}
+    </Menu.Item>
+  );
+
   return (
-    <Tooltip label={item.label} position="right" withArrow transitionProps={{ transition: 'fade-right' }}>
-      <ActionIcon
-        component={Link}
-        to={item.path}
-        variant={isActive ? 'light' : 'subtle'}
-        color={isActive ? undefined : 'gray'}
-        size="lg"
-        aria-label={item.label}
-      >
-        <Icon size={20} />
-      </ActionIcon>
-    </Tooltip>
+    <Menu
+      trigger="hover"
+      position={isRoot ? 'right-start' : 'right-start'}
+      offset={isRoot ? 12 : 4}
+      withArrow={isRoot}
+      loop={false}
+      withinPortal
+      openDelay={100}
+      closeDelay={300}
+    >
+      <Menu.Target>{Target}</Menu.Target>
+      <Menu.Dropdown>
+        {isRoot && (
+          <>
+            <Menu.Label>{item.label}</Menu.Label>
+            <Menu.Divider />
+          </>
+        )}
+        {item.children!.map((child) => (
+          <MenuItemFlyout key={child.key} item={child} activeKeys={activeKeys} isRoot={false} />
+        ))}
+      </Menu.Dropdown>
+    </Menu>
   );
 });
 
@@ -86,17 +189,48 @@ export const SidebarMenu = memo(function SidebarMenu({ items, variantOverride, w
   const variant = variantOverride ?? contextVariant;
   const isMini = variant === 'mini';
 
-  // Determine active state: match if current path starts with the menu item's base path.
-  // Stripping trailing '/index' from item.path so parent routes also match child routes.
+  // Recursive active state calculation
   const activeKeys = useMemo(() => {
     const keys = new Set<string>();
-    for (const item of items) {
-      // e.g. item.path = '/app/example/full-page/index'
-      // basePath = '/app/example/full-page'
+
+    const checkActive = (item: MenuItemType): boolean => {
+      let isActive = false;
+
+      // 1. Exact match logic (handles trailing /index)
       const basePath = item.path.replace(/\/index$/, '');
-      if (pathname === item.path || pathname.startsWith(basePath + '/') || pathname === basePath) {
+      if (pathname === item.path || pathname === basePath) {
+        isActive = true;
+      }
+      
+      // 2. Prefix match logic (for nested module routes like /detail/:id)
+      // We protect root paths like '/' or '/app' from matching everything.
+      if (!isActive && basePath !== '/' && basePath !== '/app' && basePath !== '') {
+        if (pathname.startsWith(basePath + '/')) {
+          isActive = true;
+        }
+      }
+
+      // 3. Recursive children match
+      if (item.children) {
+        for (const child of item.children) {
+          // We intentionally avoid .some() here so checkActive runs for all children
+          // ensuring every active child gets its key added to the Set.
+          if (checkActive(child)) {
+            isActive = true;
+          }
+        }
+      }
+
+      // If item or any of its children are active, mark this item as active
+      if (isActive) {
         keys.add(item.key);
       }
+      
+      return isActive;
+    };
+
+    for (const item of items) {
+      checkActive(item);
     }
     return keys;
   }, [pathname, items]);
@@ -109,9 +243,9 @@ export const SidebarMenu = memo(function SidebarMenu({ items, variantOverride, w
   if (isMini) {
     return (
       <Box h="100%" style={{ display: 'flex', flexDirection: 'column' }}>
-        <Stack align="center" gap="xs" p="xs" style={{ flex: 1 }}>
+        <Stack align="center" gap="xs" p="lg" style={{ flex: 1, overflowY: 'auto', overflowX: 'hidden' }}>
           {items.map((item) => (
-            <MenuItemMini key={item.key} item={item} isActive={activeKeys.has(item.key)} />
+            <MenuItemFlyout key={item.key} item={item} activeKeys={activeKeys} />
           ))}
         </Stack>
 
@@ -134,9 +268,9 @@ export const SidebarMenu = memo(function SidebarMenu({ items, variantOverride, w
   // -- Expanded Mode --------------------------------------------------------
   return (
     <Box h="100%" style={{ display: 'flex', flexDirection: 'column' }}>
-      <Box p="xs" style={{ flex: 1, overflowY: 'auto' }}>
+      <Box p="lg" style={{ flex: 1, overflowY: 'auto' }}>
         {items.map((item) => (
-          <MenuItemExpanded key={item.key} item={item} isActive={activeKeys.has(item.key)} />
+          <MenuItemExpanded key={item.key} item={item} activeKeys={activeKeys} />
         ))}
       </Box>
 
diff --git a/apps/web/src/apps/modules/layouts/data/menu.data.ts b/apps/web/src/apps/modules/layouts/data/menu.data.ts
index 5209b55..ed8b184 100644
--- a/apps/web/src/apps/modules/layouts/data/menu.data.ts
+++ b/apps/web/src/apps/modules/layouts/data/menu.data.ts
@@ -1,4 +1,16 @@
-import { FileText, LayoutDashboard } from 'lucide-react';
+import {
+  FileText,
+  LayoutDashboard,
+  Database,
+  Settings,
+  CreditCard,
+  Users,
+  Box,
+  Layers,
+  Warehouse,
+  Activity,
+  Globe,
+} from 'lucide-react';
 import type { MenuItemType } from '../types/menu.types';
 
 /**
@@ -6,21 +18,105 @@ import type { MenuItemType } from '../types/menu.types';
  *
  * Paths are absolute and must align with the router hierarchy:
  *   BrowserRouter → /app/* → /example/* → /single-page/* | /full-page/*
- *
- * Each module's factory defines sub-routes (e.g. /index, /detail/:id).
- * Menu items point to the default /index sub-route.
  */
 export const MENU_ITEMS: MenuItemType[] = [
   {
-    key: 'example-single-page',
-    label: 'Example Single Page',
-    icon: FileText,
-    path: '/app/example/single-page/index',
+    key: 'dashboard',
+    label: 'Dashboard',
+    icon: LayoutDashboard,
+    path: '/app/dashboard',
   },
   {
-    key: 'example-full-page',
-    label: 'Example Full Page',
-    icon: LayoutDashboard,
-    path: '/app/example/full-page/index',
+    key: 'master-data',
+    label: 'Master Data',
+    icon: Database,
+    path: '/app/master-data',
+    children: [
+      {
+        key: 'inventory',
+        label: 'Inventory',
+        icon: Box,
+        path: '/app/master-data/inventory',
+        children: [
+          {
+            key: 'products',
+            label: 'Products',
+            icon: Layers,
+            path: '/app/master-data/inventory/products',
+          },
+          {
+            key: 'categories',
+            label: 'Categories',
+            icon: Globe,
+            path: '/app/master-data/inventory/categories',
+          },
+          {
+            key: 'warehouses',
+            label: 'Warehouses',
+            icon: Warehouse,
+            path: '/app/master-data/inventory/warehouses',
+          },
+        ],
+      },
+      {
+        key: 'human-resources',
+        label: 'Human Resources',
+        icon: Users,
+        path: '/app/master-data/human-resources',
+      },
+      {
+        key: 'finance',
+        label: 'Finance',
+        icon: CreditCard,
+        path: '/app/master-data/finance',
+      },
+    ],
+  },
+  {
+    key: 'transactions',
+    label: 'Transactions',
+    icon: Activity,
+    path: '/app/transactions',
+  },
+
+  {
+    key: 'settings',
+    label: 'Settings & Configuration',
+    icon: Settings,
+    path: '/app/settings',
+    children: [
+      {
+        key: 'long-text-1',
+        label: 'Configuration Management for External Vendors',
+        icon: Settings,
+        path: '/app/settings/vendor-config',
+      },
+      {
+        key: 'long-text-2',
+        label: 'Extremely Long Menu Name To Test Text Truncation Handling Properly',
+        icon: FileText,
+        path: '/app/settings/long-menu-test',
+      },
+    ],
+  },
+  {
+    key: 'example-module',
+    label: 'Example Module',
+    icon: Database,
+    path: '/app/example-module',
+    children: [
+      {
+        key: 'example-full-page',
+        label: 'Example Full Page',
+        icon: LayoutDashboard,
+        path: '/app/example/full-page/index',
+      },
+      {
+        key: 'example-single-page',
+        label: 'Example Single Page',
+        icon: FileText,
+        path: '/app/example/single-page/index',
+      },
+    ],
   },
 ];