diff --git a/crates/nip29/src/lib.rs b/crates/nip29/src/lib.rs
index 10420191..1f7722ae 100644
--- a/crates/nip29/src/lib.rs
+++ b/crates/nip29/src/lib.rs
@@ -6,7 +6,7 @@ use anyhow::{Error, Result};
 use gpui::{App, AppContext, Context, Entity, EventEmitter, Global, Subscription, Task};
 use nostr_sdk::prelude::*;
 use smallvec::{SmallVec, smallvec};
-use state::NostrRegistry;
+use state::{NostrRegistry, UniversalSigner};
 
 mod discovery;
 mod group;
@@ -23,6 +23,10 @@ pub(crate) static LOCAL_KEYS: LazyLock<Keys> = LazyLock::new(Keys::generate);
 const BROWSE_LIMIT: usize = 500;
 const BROWSE_TIMEOUT: Duration = Duration::from_secs(10);
 const FORK_INTERVAL: Duration = Duration::from_secs(15 * 60);
+const CONFIRM_POLLS: usize = 20;
+const CONFIRM_INTERVAL: Duration = Duration::from_millis(250);
+const METADATA_WARNING: &str =
+    "Group created, but the relay did not accept its name. Edit the group to set it.";
 
 pub fn init(cx: &mut App) {
     GroupsRegistry::set_global(cx.new(GroupsRegistry::new), cx);
@@ -46,6 +50,11 @@ pub enum GroupsEvent {
     },
     /// The discovery synced new groups into the local database.
     Synced,
+    /// A relay accepted a new group; the warning carries a non-fatal issue.
+    Created {
+        key: GroupKey,
+        warning: Option<String>,
+    },
 }
 
 #[derive(Debug)]
@@ -161,7 +170,7 @@ impl GroupsRegistry {
             return;
         };
 
-        self.upsert_entry(&key, None);
+        self.upsert_entry(&key, None, false);
         self.publish_list(cx);
 
         cx.emit(GroupsEvent::Updated);
@@ -191,31 +200,94 @@ impl GroupsRegistry {
         }));
     }
 
-    pub fn create(&mut self, key: GroupKey, metadata: GroupMetadata, cx: &mut Context<Self>) {
+    pub fn create(&mut self, relay: RelayUrl, options: GroupCreateOptions, cx: &mut Context<Self>) {
+        let name = options.name.trim().to_owned();
+
+        if name.is_empty() {
+            cx.emit(GroupsEvent::Error("group name is empty".to_owned()));
+            return;
+        }
+
+        let raw = options.custom_id.as_deref().unwrap_or_default();
+        let id = if raw.is_empty() {
+            readable_id()
+        } else {
+            raw.trim().to_lowercase()
+        };
+
+        let id = match GroupId::new(id) {
+            Ok(id) => id,
+            Err(error) => {
+                cx.emit(GroupsEvent::Error(error.to_string()));
+                return;
+            }
+        };
+
+        let key = GroupKey::new(relay, id);
         self.ensure(key.clone(), cx);
 
         let Some(group) = self.group(&key, cx) else {
             return;
         };
 
-        self.upsert_entry(&key, metadata.name().map(str::to_owned));
-        self.publish_list(cx);
-
-        cx.emit(GroupsEvent::Updated);
-        cx.notify();
-
-        let builder = key.id().create_group(&metadata, None);
+        let metadata = options.metadata(name.clone());
+        let list_private = options.list_private;
+        let builder = key.id().create_group(None);
         let published = group.read(cx).publish(builder, cx);
-        let logged = key.clone();
+        let created = key;
 
         self.tasks.push(cx.spawn(async move |this, cx| {
-            if let Err(e) = published.await {
+            if let Err(error) = published.await {
                 this.update(cx, |this, cx| {
-                    this.forget(logged, cx);
-                    cx.emit(GroupsEvent::Error(e.to_string()));
+                    this.forget(created, cx);
+                    cx.emit(GroupsEvent::Error(error.to_string()));
                 })
                 .ok();
+                return;
             }
+
+            // Give the relay time to publish the group's metadata event,
+            // which settles the group id (the relay may override the suggested one).
+            for _ in 0..CONFIRM_POLLS {
+                if group.read_with(cx, |group, _cx| group.metadata().is_some()) {
+                    break;
+                }
+                cx.background_executor().timer(CONFIRM_INTERVAL).await;
+            }
+
+            // The relay can reject the metadata while the admin grant from the
+            // create is still settling, one delayed retry covers that race.
+            let mut warning = None;
+
+            for attempt in 0..2 {
+                if attempt > 0 {
+                    cx.background_executor().timer(Duration::from_secs(1)).await;
+                }
+
+                let published = group.update(cx, |group, cx| group.edit_metadata(&metadata, cx));
+                let accepted = published.await.is_ok();
+
+                if accepted {
+                    break;
+                }
+
+                if attempt == 1 {
+                    warning = Some(METADATA_WARNING.to_owned());
+                }
+            }
+
+            this.update(cx, |this, cx| {
+                this.upsert_entry(&created, Some(name), list_private);
+                this.publish_list(cx);
+
+                cx.emit(GroupsEvent::Updated);
+                cx.emit(GroupsEvent::Created {
+                    key: created,
+                    warning,
+                });
+                cx.notify();
+            })
+            .ok();
         }));
     }
 
@@ -392,7 +464,10 @@ impl GroupsRegistry {
             let filter = Filter::new().author(me).kind(Kind::SimpleGroups).limit(1);
 
             match client.database().query(filter).await?.into_iter().next() {
-                Some(event) => GroupList::parse(&event),
+                Some(event) => {
+                    let list = GroupList::parse(&event)?;
+                    Ok(Self::hydrate_list(list, &signer, &me).await)
+                }
                 None => Ok(GroupList::default()),
             }
         });
@@ -435,6 +510,10 @@ impl GroupsRegistry {
     }
 
     fn merge(&mut self, list: GroupList, cx: &mut Context<Self>) {
+        // Carry the event's private section so a later publish can preserve it.
+        self.list
+            .set_content(list.content().map(str::to_owned), list.content_readable());
+
         let entries = list.entries().to_vec();
 
         for entry in entries {
@@ -446,6 +525,58 @@ impl GroupsRegistry {
         cx.notify();
     }
 
+    /// Decrypt a list event's private section into its entries.
+    async fn hydrate_list(
+        mut list: GroupList,
+        signer: &UniversalSigner,
+        me: &PublicKey,
+    ) -> GroupList {
+        let Some(content) = list.content().map(str::to_owned) else {
+            return list;
+        };
+
+        match signer.nip44_decrypt(me, &content).await {
+            Ok(plaintext) => match parse_private_section(&plaintext) {
+                Some(entries) => {
+                    list.merge_private(entries);
+                    list.mark_readable();
+                }
+                None => log::warn!("ignoring a malformed private group list section"),
+            },
+            Err(error) => log::warn!("decrypting the private group list failed: {error}"),
+        }
+
+        list
+    }
+
+    /// Absorb a list event, decrypting its private section off the hot path.
+    fn absorb_list(&mut self, event: Event, cx: &mut Context<Self>) {
+        let list = match GroupList::parse(&event) {
+            Ok(list) => list,
+            Err(error) => {
+                log::warn!("ignoring a malformed group list: {error}");
+                return;
+            }
+        };
+
+        if list.content().is_none() {
+            self.merge(list, cx);
+            return;
+        }
+
+        let nostr = NostrRegistry::global(cx);
+        let signer = nostr.read(cx).signer();
+        let Some(me) = nostr.read(cx).current_user() else {
+            self.merge(list, cx);
+            return;
+        };
+
+        self.tasks.push(cx.spawn(async move |this, cx| {
+            let list = Self::hydrate_list(list, &signer, &me).await;
+            this.update(cx, |this, cx| this.merge(list, cx)).ok();
+        }));
+    }
+
     fn watch_forks(&mut self, cx: &mut Context<Self>) {
         let executor = cx.background_executor().clone();
         let tx = self.signal_tx.clone();
@@ -662,13 +793,14 @@ impl GroupsRegistry {
             .and_then(|entry| entry.name.clone())
     }
 
-    fn upsert_entry(&mut self, key: &GroupKey, name: Option<String>) {
+    fn upsert_entry(&mut self, key: &GroupKey, name: Option<String>, private: bool) {
         let name = name.or_else(|| self.entry_name(key));
 
         self.list.upsert(GroupListEntry {
             id: key.id().clone(),
             relay: key.relay().clone(),
             name,
+            private,
         });
     }
 
@@ -690,7 +822,9 @@ impl GroupsRegistry {
             return;
         }
 
-        self.upsert_entry(&key, Some(name));
+        let private = self.list.entry(&key).is_some_and(|entry| entry.private);
+
+        self.upsert_entry(&key, Some(name), private);
         self.publish_list(cx);
     }
 
@@ -698,10 +832,30 @@ impl GroupsRegistry {
         let nostr = NostrRegistry::global(cx);
         let client = nostr.read(cx).client();
         let signer = nostr.read(cx).signer();
-
-        let builder = self.list.to_builder();
+        let me = nostr.read(cx).current_user();
+        let list = self.list.clone();
 
         self.tasks.push(cx.spawn(async move |_this, _cx| {
+            // Re-encrypt the private section when it carries local entries; a
+            // section this session could not read is carried verbatim.
+            let content = match (list.has_private(), list.content_readable()) {
+                (true, _) => match list.encode_private().zip(me) {
+                    Some((plaintext, me)) => match signer.nip44_encrypt(&me, &plaintext).await {
+                        Ok(content) => Some(content),
+                        Err(error) => {
+                            log::warn!("encrypting the private group list failed: {error}");
+                            list.content().map(str::to_owned)
+                        }
+                    },
+                    None => None,
+                },
+                (false, false) => list.content().map(str::to_owned),
+                (false, true) => None,
+            };
+
+            let builder = EventBuilder::new(Kind::SimpleGroups, content.unwrap_or_default())
+                .tags(list.public_tags());
+
             let event = match builder.finalize_async(&signer).await {
                 Ok(event) => event,
                 Err(error) => {
@@ -858,10 +1012,7 @@ impl GroupsRegistry {
 
     fn handle_event(&mut self, id: SubscriptionId, event: Event, cx: &mut Context<Self>) {
         if id == list_subscription_id() {
-            match GroupList::parse(&event) {
-                Ok(list) => self.merge(list, cx),
-                Err(error) => log::warn!("ignoring a malformed group list: {error}"),
-            }
+            self.absorb_list(event, cx);
             return;
         }
 
diff --git a/crates/nip29/src/protocol.rs b/crates/nip29/src/protocol.rs
index 596ec1f1..46d91c0e 100644
--- a/crates/nip29/src/protocol.rs
+++ b/crates/nip29/src/protocol.rs
@@ -155,9 +155,9 @@ impl GroupId {
             .tag_maybe(previous)
     }
 
-    pub fn create_group(&self, metadata: &GroupMetadata, previous: Option<Tag>) -> EventBuilder {
+    pub fn create_group(&self, previous: Option<Tag>) -> EventBuilder {
         EventBuilder::new(Kind::GroupCreateGroup, "")
-            .tags(self.metadata_tags(metadata))
+            .tag(self.h_tag())
             .tag_maybe(previous)
     }
 
@@ -435,6 +435,38 @@ impl GroupMetadata {
     }
 }
 
+/// Input for creating a group: access flags are presence-only per NIP-29.
+#[derive(Debug, Clone, Default)]
+pub struct GroupCreateOptions {
+    pub name: String,
+    pub about: Option<String>,
+    pub picture: Option<String>,
+    pub private: bool,
+    pub closed: bool,
+    pub restricted: bool,
+    pub hidden: bool,
+    /// List the group in the NIP-44 encrypted section of the user's group list.
+    pub list_private: bool,
+    pub custom_id: Option<String>,
+    pub parent: Option<GroupId>,
+}
+
+impl GroupCreateOptions {
+    pub(crate) fn metadata(&self, name: String) -> GroupMetadata {
+        GroupMetadata {
+            name: Some(name),
+            picture: self.picture.clone(),
+            about: self.about.clone(),
+            private: self.private,
+            restricted: self.restricted,
+            hidden: self.hidden,
+            closed: self.closed,
+            parent: self.parent.clone(),
+            ..Default::default()
+        }
+    }
+}
+
 #[derive(Debug, Clone)]
 pub struct GroupCandidate {
     pub key: GroupKey,
@@ -611,10 +643,19 @@ pub(crate) struct GroupListEntry {
     pub id: GroupId,
     pub relay: RelayUrl,
     pub name: Option<String>,
+    /// Kept in the encrypted section of the list event, not in public tags.
+    pub private: bool,
 }
 
 #[derive(Debug, Clone, Default)]
-pub(crate) struct GroupList(Vec<GroupListEntry>);
+pub(crate) struct GroupList {
+    entries: Vec<GroupListEntry>,
+    /// The raw private section of the last seen list event.
+    content: Option<String>,
+    /// Whether the content was decrypted in this session; an opaque section
+    /// (another client's encryption, or a refused decrypt) is carried verbatim.
+    readable: bool,
+}
 
 impl GroupList {
     pub fn parse(event: &Event) -> Result<Self> {
@@ -642,36 +683,94 @@ impl GroupList {
                 id,
                 relay,
                 name: fields.get(3).cloned(),
+                private: false,
             });
         }
 
-        Ok(Self(entries))
+        let content = if event.content.is_empty() {
+            None
+        } else {
+            Some(event.content.clone())
+        };
+
+        Ok(Self {
+            entries,
+            readable: content.is_none(),
+            content,
+        })
     }
 
     pub fn entries(&self) -> &[GroupListEntry] {
-        &self.0
+        &self.entries
+    }
+
+    pub fn entry(&self, key: &GroupKey) -> Option<&GroupListEntry> {
+        self.entries
+            .iter()
+            .find(|entry| entry.id == *key.id() && entry.relay == *key.relay())
     }
 
     pub fn upsert(&mut self, entry: GroupListEntry) {
         match self
-            .0
+            .entries
             .iter_mut()
             .find(|existing| existing.id == entry.id && existing.relay == entry.relay)
         {
             Some(existing) => *existing = entry,
-            None => self.0.push(entry),
+            None => self.entries.push(entry),
         }
     }
 
     pub fn remove(&mut self, key: &GroupKey) {
-        self.0
+        self.entries
             .retain(|entry| entry.id != *key.id() || entry.relay != *key.relay());
     }
 
-    pub fn to_builder(&self) -> EventBuilder {
-        let mut tags: Vec<Tag> = Vec::with_capacity(self.0.len() * 2);
+    /// The raw private section of the list event, if any.
+    pub(crate) fn content(&self) -> Option<&str> {
+        self.content.as_deref()
+    }
+
+    pub(crate) fn content_readable(&self) -> bool {
+        self.readable
+    }
+
+    pub(crate) fn set_content(&mut self, content: Option<String>, readable: bool) {
+        self.content = content;
+        self.readable = readable;
+    }
+
+    pub(crate) fn has_private(&self) -> bool {
+        self.entries.iter().any(|entry| entry.private)
+    }
+
+    /// Mark the private section as readable after a successful decrypt.
+    pub(crate) fn mark_readable(&mut self) {
+        self.readable = true;
+    }
+
+    /// Add decrypted private entries; the public listing wins on collision.
+    pub(crate) fn merge_private(&mut self, entries: Vec<GroupListEntry>) {
+        for entry in entries {
+            let public = self.entries.iter().any(|existing| {
+                !existing.private && existing.id == entry.id && existing.relay == entry.relay
+            });
+
+            if !public {
+                self.upsert(entry);
+            }
+        }
+    }
+
+    /// The tags of the public section of the list event.
+    pub(crate) fn public_tags(&self) -> Vec<Tag> {
+        let mut tags = Vec::with_capacity(self.entries.len() * 2);
+
+        for entry in &self.entries {
+            if entry.private {
+                continue;
+            }
 
-        for entry in &self.0 {
             let mut values = vec![
                 entry.id.as_str().to_owned(),
                 entry.relay.as_str().to_owned(),
@@ -685,8 +784,68 @@ impl GroupList {
             tags.push(Tag::custom("r", [entry.relay.as_str()]));
         }
 
-        EventBuilder::new(Kind::SimpleGroups, "").tags(tags)
+        tags
     }
+
+    /// The private entries encoded as a tag array, ready for encryption.
+    pub(crate) fn encode_private(&self) -> Option<String> {
+        let tags: Vec<Vec<String>> = self
+            .entries
+            .iter()
+            .filter(|entry| entry.private)
+            .map(|entry| {
+                let mut values = vec![
+                    entry.id.as_str().to_owned(),
+                    entry.relay.as_str().to_owned(),
+                ];
+
+                if let Some(name) = &entry.name {
+                    values.push(name.clone());
+                }
+
+                values
+            })
+            .collect();
+
+        if tags.is_empty() {
+            None
+        } else {
+            serde_json::to_string(&tags).ok()
+        }
+    }
+}
+
+/// Parse a decrypted private section; `None` when it isn't a tag array.
+pub(crate) fn parse_private_section(plaintext: &str) -> Option<Vec<GroupListEntry>> {
+    let tags = serde_json::from_str::<Vec<Vec<String>>>(plaintext).ok()?;
+
+    let mut entries = Vec::new();
+
+    for tag in tags {
+        if tag.first().map(String::as_str) != Some("group") {
+            continue;
+        }
+
+        let (Some(id), Some(relay)) = (tag.get(1), tag.get(2)) else {
+            continue;
+        };
+
+        let Ok(id) = GroupId::new(id) else {
+            continue;
+        };
+        let Ok(relay) = RelayUrl::parse(relay) else {
+            continue;
+        };
+
+        entries.push(GroupListEntry {
+            id,
+            relay,
+            name: tag.get(3).cloned(),
+            private: true,
+        });
+    }
+
+    Some(entries)
 }
 
 #[derive(Debug, Clone, PartialEq, Eq)]
diff --git a/crates/nip29/src/utils.rs b/crates/nip29/src/utils.rs
index f66d4bc5..153540ed 100644
--- a/crates/nip29/src/utils.rs
+++ b/crates/nip29/src/utils.rs
@@ -58,3 +58,44 @@ pub(crate) fn parse_members(event: &Event) -> Option<(GroupId, Timestamp, usize)
 
     Some((id, event.created_at, members))
 }
+
+const ONSETS: [&str; 34] = [
+    "b", "c", "d", "f", "g", "h", "j", "k", "l", "m", "n", "p", "r", "s", "t", "v", "br", "cr",
+    "dr", "fr", "gr", "pr", "tr", "bl", "cl", "fl", "gl", "pl", "sl", "sh", "ch", "th", "st", "sk",
+];
+const NUCLEI: [&str; 9] = ["a", "e", "i", "o", "u", "ae", "ei", "io", "ou"];
+const CODAS: [&str; 11] = ["", "", "", "n", "r", "s", "t", "d", "l", "m", "k"];
+
+/// A short pronounceable id for new groups, seeded from a fresh key.
+pub(crate) fn readable_id() -> String {
+    let mut picks = SecretKey::generate().secret_bytes().into_iter();
+
+    let mut id = String::with_capacity(18);
+
+    for _ in 0..3 {
+        let onset = ONSETS[usize::from(picks.next().unwrap_or(0)) % ONSETS.len()];
+        let nucleus = NUCLEI[usize::from(picks.next().unwrap_or(0)) % NUCLEI.len()];
+        let coda = CODAS[usize::from(picks.next().unwrap_or(0)) % CODAS.len()];
+
+        id.push_str(onset);
+        id.push_str(nucleus);
+        id.push_str(coda);
+    }
+
+    id
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_readable_id() {
+        for _ in 0..32 {
+            let id = readable_id();
+
+            assert!((6..=15).contains(&id.len()));
+            assert!(id.chars().all(|character| character.is_ascii_lowercase()));
+        }
+    }
+}
diff --git a/crates/nip29_ui/src/lib.rs b/crates/nip29_ui/src/lib.rs
index a6b653f1..b1ec01ce 100644
--- a/crates/nip29_ui/src/lib.rs
+++ b/crates/nip29_ui/src/lib.rs
@@ -51,6 +51,14 @@ pub struct HideGroupMeta {
     pub group: String,
 }
 
+/// Ask the shell to open the channel creation dialog under a group.
+#[derive(Action, Clone, PartialEq, Eq, Deserialize)]
+#[action(namespace = nip29_ui, no_json)]
+pub struct CreateChannel {
+    pub relay: RelayUrl,
+    pub parent: String,
+}
+
 const ADMIN_ROLE: &str = "admin";
 const LOAD_OLDER_THRESHOLD: usize = 20;
 
@@ -96,6 +104,7 @@ pub fn actions(group: WeakEntity<Group>, cx: &App) -> AnyElement {
     let info = group.clone();
     let edit = group.clone();
     let invite = group.clone();
+    let channel = group.clone();
     let leave = group;
 
     h_flex()
@@ -131,6 +140,27 @@ pub fn actions(group: WeakEntity<Group>, cx: &App) -> AnyElement {
                         invite::open(invite.clone(), window, cx);
                     }),
             )
+            .child(
+                Button::new("group-channel")
+                    .icon(IconName::Plus)
+                    .tooltip("Create channel")
+                    .ghost()
+                    .small()
+                    .on_click(move |_, window, cx| {
+                        let Ok(key) = channel.read_with(cx, |group, _cx| group.key().clone())
+                        else {
+                            return;
+                        };
+
+                        window.dispatch_action(
+                            Box::new(CreateChannel {
+                                relay: key.relay().clone(),
+                                parent: key.id().as_str().to_owned(),
+                            }),
+                            cx,
+                        );
+                    }),
+            )
         })
         .child(
             Button::new("leave")
@@ -927,7 +957,12 @@ impl Panel for GroupPanel {
                     .child(display_name(group))
                     .into_any_element()
             })
-            .unwrap_or_else(|| div().text_style(TextStyle::Caption).child("Unknown").into_any_element())
+            .unwrap_or_else(|| {
+                div()
+                    .text_style(TextStyle::Caption)
+                    .child("Unknown")
+                    .into_any_element()
+            })
     }
 
     fn toolbar_buttons(&self, _window: &Window, _cx: &App) -> Vec<Button> {
diff --git a/crates/nip29_ui/src/metadata.rs b/crates/nip29_ui/src/metadata.rs
index a4086ace..d8850386 100644
--- a/crates/nip29_ui/src/metadata.rs
+++ b/crates/nip29_ui/src/metadata.rs
@@ -77,28 +77,28 @@ pub(crate) fn open(group: WeakEntity<Group>, window: &mut Window, cx: &mut App)
                             .child(
                                 Switch::new("private")
                                     .label("Private")
-                                    .description("Only members can read messages.")
+                                    .description("Only members can read group messages")
                                     .checked(current.private)
                                     .on_click(toggle(&flags, |flags| &mut flags.private)),
                             )
                             .child(
                                 Switch::new("restricted")
                                     .label("Restricted")
-                                    .description("Only members can send messages.")
+                                    .description("Only members can post messages")
                                     .checked(current.restricted)
                                     .on_click(toggle(&flags, |flags| &mut flags.restricted)),
                             )
                             .child(
                                 Switch::new("hidden")
                                     .label("Hidden")
-                                    .description("Hide the group from non-members.")
+                                    .description("Hidden from non-members, not discoverable")
                                     .checked(current.hidden)
                                     .on_click(toggle(&flags, |flags| &mut flags.hidden)),
                             )
                             .child(
                                 Switch::new("closed")
                                     .label("Closed")
-                                    .description("Ignore join requests.")
+                                    .description("Join requests are ignored (invite-only)")
                                     .checked(current.closed)
                                     .on_click(toggle(&flags, |flags| &mut flags.closed)),
                             )
diff --git a/crates/state/src/signer.rs b/crates/state/src/signer.rs
index 050d9076..e92d022a 100644
--- a/crates/state/src/signer.rs
+++ b/crates/state/src/signer.rs
@@ -59,6 +59,26 @@ impl UniversalSigner {
     {
         *self.inner.write().expect("RwLock poisoned") = Arc::new(InnerSignerImpl(new_signer));
     }
+
+    /// Encrypt a payload to the given key with NIP-44.
+    pub async fn nip44_encrypt(
+        &self,
+        public_key: &PublicKey,
+        content: &str,
+    ) -> Result<String, UniversalSignerError> {
+        let inner = self.inner.read().expect("RwLock poisoned").clone();
+        inner.nip44_encrypt_async(public_key, content).await
+    }
+
+    /// Decrypt a NIP-44 payload from the given key.
+    pub async fn nip44_decrypt(
+        &self,
+        public_key: &PublicKey,
+        payload: &str,
+    ) -> Result<String, UniversalSignerError> {
+        let inner = self.inner.read().expect("RwLock poisoned").clone();
+        inner.nip44_decrypt_async(public_key, payload).await
+    }
 }
 
 trait InnerSigner: fmt::Debug + Send + Sync + 'static {
diff --git a/crates/workspace/src/dialogs/new_group.rs b/crates/workspace/src/dialogs/new_group.rs
index 42f5646c..cc9601c1 100644
--- a/crates/workspace/src/dialogs/new_group.rs
+++ b/crates/workspace/src/dialogs/new_group.rs
@@ -1,40 +1,644 @@
-use std::rc::Rc;
-
-use gpui::{App, AppContext, ClickEvent, Div, Entity, ParentElement, Styled, Window, px};
-use nip29::{GroupId, GroupKey, GroupMetadata, GroupsRegistry};
+use anyhow::Error;
+use gpui::prelude::FluentBuilder;
+use gpui::{
+    Anchor, App, AppContext, Context, Div, Entity, InteractiveElement as _, IntoElement,
+    ParentElement, PathPromptOptions, Render, SharedString, StatefulInteractiveElement as _,
+    Styled, Subscription, Task, WeakEntity, Window, div, px,
+};
+use nip29::{GroupCreateOptions, GroupKey, GroupsEvent, GroupsRegistry};
 use nostr_sdk::prelude::*;
-use theme::{ActiveTheme, TextStyle, Typeset as _};
-use ui::button::{Button, ButtonVariants, IconPosition};
-use ui::input::{Input, InputState};
-use ui::notification::Notification;
-use ui::{IconName, StyledExt, WindowExtension, h_flex, v_flex};
+use settings::AppSettings;
+use state::{NostrRegistry, upload};
+use theme::{ActiveTheme, TextStyle, Typeset as _, control_radius};
+use ui::avatar::Avatar;
+use ui::button::{Button, ButtonVariants};
+use ui::dock::{DockArea, DockPlacement, PanelHandle};
+use ui::input::{Input, InputEvent, InputState, Textarea, TextareaState};
+use ui::menu::{DropdownMenu, PopupMenuItem};
+use ui::switch::Switch;
+use ui::{Disableable, Sizable, StyledExt, WindowExtension, h_flex, v_flex};
 
-type SubmitFn = Rc<dyn Fn(&ClickEvent, &mut Window, &mut App) -> bool>;
+const SUGGESTED_RELAY: &str = "wss://relay.ditto.pub";
+const PRIVATE_DESC: &str = "Only members can read group messages";
+const CLOSED_DESC: &str = "Join requests are ignored (invite-only)";
+const RESTRICTED_DESC: &str = "Only members can post messages";
+const HIDDEN_DESC: &str = "Hidden from non-members, not discoverable";
+const LIST_PRIVATE_DESC: &str = "Kept encrypted in your group list so others can't see you joined";
 
-pub fn open(window: &mut Window, cx: &mut App) {
-    let name = cx.new(|cx| InputState::new(window, cx).placeholder("Group name"));
-    let id = cx.new(|cx| InputState::new(window, cx).placeholder("Group id"));
-    let relay = cx.new(|cx| InputState::new(window, cx).placeholder("wss://relay.example.com"));
+pub fn open(dock: WeakEntity<DockArea>, window: &mut Window, cx: &mut App) {
+    open_with(dock, None, window, cx);
+}
 
-    let submit: SubmitFn = {
-        let (name, id, relay) = (name.clone(), id.clone(), relay.clone());
-        Rc::new(move |_, window, cx| create(&name, &id, &relay, window, cx))
-    };
+pub fn open_channel(
+    dock: WeakEntity<DockArea>,
+    parent: GroupKey,
+    window: &mut Window,
+    cx: &mut App,
+) {
+    open_with(dock, Some(parent), window, cx);
+}
 
-    window.open_dialog(cx, move |this, _window, cx| {
-        this.width(px(380.))
-            .title("New group")
-            .on_ok({
-                let submit = submit.clone();
-                move |event, window, cx| submit(event, window, cx)
+fn open_with(
+    dock: WeakEntity<DockArea>,
+    parent: Option<GroupKey>,
+    window: &mut Window,
+    cx: &mut App,
+) {
+    let is_channel = parent.is_some();
+    let view = cx.new(|cx| NewGroup::new(dock, parent, window, cx));
+
+    window.open_dialog(cx, {
+        let view = view.clone();
+
+        move |this, _window, _cx| {
+            let title = if is_channel {
+                "Create Channel"
+            } else {
+                "Create a Group"
+            };
+
+            this.width(px(440.)).title(title).child(view.clone())
+        }
+    });
+}
+
+struct NewGroup {
+    dock: WeakEntity<DockArea>,
+    /// The parent group when creating a channel; the relay is locked to its own.
+    parent: Option<GroupKey>,
+    name_input: Entity<InputState>,
+    id_input: Entity<InputState>,
+    about_input: Entity<TextareaState>,
+    custom_relay_input: Entity<InputState>,
+    /// The relays offered in the dropdown.
+    relays: Vec<RelayUrl>,
+    /// The selected relay; `None` selects the custom relay field.
+    selected_relay: Option<RelayUrl>,
+    /// Whether the optional custom group id input is shown.
+    show_custom_id: bool,
+    /// Keep the group in the NIP-44 encrypted section of the user's group list.
+    list_private: bool,
+    /// The uploaded group picture, ready to be published with the metadata.
+    picture: Option<SharedString>,
+    /// Whether a picture upload is in flight.
+    uploading: bool,
+    private: bool,
+    closed: bool,
+    restricted: bool,
+    hidden: bool,
+    creating: bool,
+    error: Option<SharedString>,
+    tasks: Vec<Task<Result<(), Error>>>,
+    _subscriptions: Vec<Subscription>,
+}
+
+impl NewGroup {
+    fn new(
+        dock: WeakEntity<DockArea>,
+        parent: Option<GroupKey>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let name_input = cx.new(|cx| InputState::new(window, cx).placeholder("#example"));
+        let id_input = cx.new(|cx| InputState::new(window, cx).placeholder("my-group"));
+
+        let custom_relay_input =
+            cx.new(|cx| InputState::new(window, cx).placeholder("relay.example.com"));
+
+        let about_input = cx.new(|cx| {
+            TextareaState::new(window, cx)
+                .auto_grow(3, 5)
+                .placeholder("What is this group about?")
+        });
+
+        let relays = match RelayUrl::parse(SUGGESTED_RELAY) {
+            Ok(relay) => vec![relay],
+            Err(error) => {
+                log::warn!("the suggested group relay is invalid: {error}");
+                Vec::new()
+            }
+        };
+        let selected_relay = relays.first().cloned();
+
+        let registry = GroupsRegistry::global(cx);
+        let mut subscriptions = vec![];
+
+        subscriptions.push(cx.subscribe_in(
+            &registry,
+            window,
+            |this, _registry, event, window, cx| match event {
+                GroupsEvent::Created { key, .. } => {
+                    this.creating = false;
+                    this.open_group(key.clone(), window, cx);
+                }
+                GroupsEvent::Error(error) if this.creating => {
+                    this.creating = false;
+                    this.set_error(friendly_error(error), cx);
+                }
+                _ => {}
+            },
+        ));
+
+        // Clear stale errors as the user edits the failing fields.
+        for input in [&name_input, &custom_relay_input] {
+            subscriptions.push(cx.subscribe_in(
+                input,
+                window,
+                |this, _input, event, _window, cx| {
+                    if let InputEvent::Change = event {
+                        this.clear_error(cx);
+                    }
+                },
+            ));
+        }
+
+        // Load the user's relays once the view is mounted; a channel's relay
+        // is locked to its parent's, so there is nothing to pick.
+        if parent.is_none() {
+            cx.defer_in(window, |this, window, cx| {
+                this.load_relays(window, cx);
+            });
+        }
+
+        Self {
+            dock,
+            parent,
+            name_input,
+            id_input,
+            about_input,
+            custom_relay_input,
+            relays,
+            selected_relay,
+            show_custom_id: false,
+            list_private: false,
+            picture: None,
+            uploading: false,
+            private: false,
+            closed: false,
+            restricted: false,
+            hidden: false,
+            creating: false,
+            error: None,
+            tasks: vec![],
+            _subscriptions: subscriptions,
+        }
+    }
+
+    /// Load the signed-in user's relay list.
+    fn load_relays(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        let nostr = NostrRegistry::global(cx);
+        let client = nostr.read(cx).client();
+
+        let Some(public_key) = nostr.read(cx).current_user() else {
+            return;
+        };
+
+        let task: Task<Result<Vec<RelayUrl>, Error>> = cx.background_spawn(async move {
+            let filter = Filter::new()
+                .kind(Kind::RelayList)
+                .author(public_key)
+                .limit(1);
+
+            if let Some(event) = client.database().query(filter).await?.into_iter().next() {
+                Ok(nip65::extract_relay_list(&event)
+                    .map(|(url, _)| url)
+                    .collect())
+            } else {
+                Ok(Vec::new())
+            }
+        });
+
+        self.tasks.push(cx.spawn_in(window, async move |this, cx| {
+            let relays = task.await?;
+
+            this.update(cx, |this, cx| {
+                if !relays.is_empty() {
+                    this.relays = relays;
+                }
+
+                this.selected_relay = this
+                    .selected_relay
+                    .take()
+                    .filter(|selected| this.relays.contains(selected))
+                    .or_else(|| this.relays.first().cloned());
+
+                cx.notify();
+            })?;
+
+            Ok(())
+        }));
+    }
+
+    /// The relay the group will be created on.
+    fn effective_relay(&self, cx: &App) -> Result<RelayUrl, SharedString> {
+        let Some(selected) = &self.selected_relay else {
+            let raw = self.custom_relay_input.read(cx).value().trim().to_owned();
+
+            if raw.is_empty() {
+                return Err("Enter a relay to create the group on.".into());
+            }
+
+            let url = if raw.starts_with("wss://") || raw.starts_with("ws://") {
+                raw
+            } else {
+                format!("wss://{raw}")
+            };
+
+            return RelayUrl::parse(&url).map_err(|_| {
+                SharedString::from("Enter a valid relay URL (e.g. relay.example.com).")
+            });
+        };
+
+        Ok(selected.clone())
+    }
+
+    fn create(&mut self, cx: &mut Context<Self>) {
+        if self.creating || self.uploading {
+            return;
+        }
+
+        let registry = GroupsRegistry::global(cx);
+        let name = self.name_input.read(cx).value().trim().to_owned();
+
+        if name.is_empty() {
+            self.set_error("Group name is required.", cx);
+            return;
+        }
+
+        let relay = match &self.parent {
+            Some(parent) => parent.relay().clone(),
+            None => match self.effective_relay(cx) {
+                Ok(relay) => relay,
+                Err(error) => {
+                    self.set_error(error, cx);
+                    return;
+                }
+            },
+        };
+
+        let custom_id = self.id_input.read(cx).value().trim().to_lowercase();
+        if !custom_id.is_empty()
+            && !custom_id
+                .chars()
+                .all(|c| c.is_ascii_lowercase() || c.is_ascii_digit() || c == '-' || c == '_')
+        {
+            self.set_error(
+                "The group id can only contain letters, numbers, '-' and '_'.",
+                cx,
+            );
+            return;
+        }
+
+        let about = self.about_input.read(cx).value().trim().to_owned();
+
+        let options = GroupCreateOptions {
+            name,
+            about: (!about.is_empty()).then_some(about),
+            picture: self.picture.as_ref().map(|picture| picture.to_string()),
+            private: self.private,
+            closed: self.closed,
+            restricted: self.restricted,
+            hidden: self.hidden,
+            list_private: self.list_private,
+            custom_id: (!custom_id.is_empty()).then_some(custom_id),
+            parent: self.parent.as_ref().map(|parent| parent.id().clone()),
+        };
+
+        self.creating = true;
+        self.error = None;
+        cx.notify();
+
+        registry.update(cx, |registry, cx| {
+            registry.create(relay, options, cx);
+        });
+    }
+
+    fn open_group(&self, key: GroupKey, window: &mut Window, cx: &mut App) {
+        let registry = GroupsRegistry::global(cx);
+        let group = registry.update(cx, |registry, cx| registry.open(key, cx));
+
+        ui::dock::add_panel_to(
+            &self.dock,
+            PanelHandle::new(nip29_ui::init(group, window, cx)),
+            DockPlacement::Center,
+            window,
+            cx,
+        );
+
+        window.close_dialog(cx);
+    }
+
+    fn select_relay(&mut self, relay: Option<RelayUrl>, cx: &mut Context<Self>) {
+        self.selected_relay = relay;
+        self.error = None;
+        cx.notify();
+    }
+
+    fn set_uploading(&mut self, uploading: bool, cx: &mut Context<Self>) {
+        self.uploading = uploading;
+        cx.notify();
+    }
+
+    fn upload(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        let server = AppSettings::get_file_server(cx);
+
+        let path = cx.prompt_for_paths(PathPromptOptions {
+            files: true,
+            directories: false,
+            multiple: false,
+            prompt: None,
+        });
+
+        self.tasks.push(cx.spawn_in(window, async move |this, cx| {
+            // Selecting no file means the prompt was cancelled
+            let Some(path) = path.await??.and_then(|mut paths| paths.pop()) else {
+                return Ok(());
+            };
+
+            this.update(cx, |this, cx| {
+                this.set_uploading(true, cx);
+            })?;
+
+            match upload(server, path, cx).await {
+                Ok(url) => {
+                    this.update(cx, |this, cx| {
+                        this.picture = Some(url.to_string().into());
+                        this.set_uploading(false, cx);
+                    })?;
+                }
+                Err(error) => {
+                    this.update(cx, |this, cx| {
+                        this.set_uploading(false, cx);
+                        this.set_error(friendly_error(&error.to_string()), cx);
+                    })?;
+                }
+            }
+
+            Ok(())
+        }));
+    }
+
+    fn set_error(&mut self, message: impl Into<SharedString>, cx: &mut Context<Self>) {
+        self.error = Some(message.into());
+        cx.notify();
+    }
+
+    fn clear_error(&mut self, cx: &mut Context<Self>) {
+        if self.error.take().is_some() {
+            cx.notify();
+        }
+    }
+
+    fn render_relay(&self, selected: &str, cx: &mut Context<Self>) -> impl IntoElement {
+        // A channel must live on its parent's relay: the parent tag carries a
+        // relay-scoped group id the relay validates against its own state.
+        if let Some(parent) = &self.parent {
+            return v_flex().gap_1().child(field_label("Relay", cx)).child(
+                div()
+                    .text_style(TextStyle::Caption)
+                    .text_color(cx.theme().text_muted)
+                    .child(format!(
+                        "Created on {} (same relay as the parent group).",
+                        relay_label(parent.relay())
+                    )),
+            );
+        }
+
+        let this = cx.entity().downgrade();
+        let relays = self.relays.clone();
+
+        v_flex()
+            .gap_1()
+            .child(field_label("Relay", cx))
+            .when(self.selected_relay.is_none(), |this| {
+                this.child(Input::new(&self.custom_relay_input))
             })
             .child(
-                v_flex()
-                    .gap_3()
-                    .child(field("Name", &name, cx))
-                    .child(field("Group id", &id, cx))
-                    .child(field("Relay", &relay, cx)),
+                Button::new("relay")
+                    .label(selected.to_owned())
+                    .ghost_alt()
+                    .caret()
+                    .dropdown_menu_with_anchor(Anchor::BottomLeft, move |menu, _window, _cx| {
+                        let menu = relays.iter().fold(menu, |menu, relay| {
+                            let this = this.clone();
+                            let relay = relay.clone();
+
+                            menu.item(PopupMenuItem::new(relay_label(&relay)).on_click(
+                                move |_, _window, cx| {
+                                    this.update(cx, |this, cx| {
+                                        this.select_relay(Some(relay.clone()), cx);
+                                    })
+                                    .ok();
+                                },
+                            ))
+                        });
+
+                        let this = this.clone();
+
+                        menu.item(PopupMenuItem::new("Custom relay…").on_click(
+                            move |_, _window, cx| {
+                                this.update(cx, |this, cx| this.select_relay(None, cx)).ok();
+                            },
+                        ))
+                    }),
             )
+    }
+
+    fn render_access(&self, cx: &mut Context<Self>) -> impl IntoElement {
+        let private = Switch::new("private")
+            .label("Private")
+            .description(PRIVATE_DESC)
+            .checked(self.private)
+            .on_click(cx.listener(|this, checked: &bool, _window, cx| {
+                this.private = *checked;
+                cx.notify();
+            }));
+
+        let closed = Switch::new("closed")
+            .label("Closed")
+            .description(CLOSED_DESC)
+            .checked(self.closed)
+            .on_click(cx.listener(|this, checked: &bool, _window, cx| {
+                this.closed = *checked;
+                cx.notify();
+            }));
+
+        let restricted = Switch::new("restricted")
+            .label("Restricted")
+            .description(RESTRICTED_DESC)
+            .checked(self.restricted)
+            .on_click(cx.listener(|this, checked: &bool, _window, cx| {
+                this.restricted = *checked;
+                cx.notify();
+            }));
+
+        let hidden = Switch::new("hidden")
+            .label("Hidden")
+            .description(HIDDEN_DESC)
+            .checked(self.hidden)
+            .on_click(cx.listener(|this, checked: &bool, _window, cx| {
+                this.hidden = *checked;
+                cx.notify();
+            }));
+
+        v_flex()
+            .gap_2()
+            .child(field_label("ACCESS SETTINGS", cx))
+            .child(switch_row(private, cx))
+            .child(switch_row(closed, cx))
+            .child(switch_row(restricted, cx))
+            .child(switch_row(hidden, cx))
+    }
+
+    fn render_list_setting(&self, cx: &mut Context<Self>) -> impl IntoElement {
+        let list_private = Switch::new("list-private")
+            .label("Private on my list")
+            .description(LIST_PRIVATE_DESC)
+            .checked(self.list_private)
+            .on_click(cx.listener(|this, checked: &bool, _window, cx| {
+                this.list_private = *checked;
+                cx.notify();
+            }));
+
+        v_flex()
+            .gap_2()
+            .child(field_label("YOUR LIST", cx))
+            .child(switch_row(list_private, cx))
+    }
+
+    fn render_error(
+        &self,
+        error: &str,
+        web_url: Option<&str>,
+        cx: &Context<Self>,
+    ) -> impl IntoElement {
+        h_flex()
+            .items_start()
+            .gap_2()
+            .child(
+                div()
+                    .flex_1()
+                    .text_style(TextStyle::Caption)
+                    .text_color(cx.theme().danger)
+                    .child(error.to_owned()),
+            )
+            .when(shows_relay_website(error), |this| {
+                this.child(
+                    div()
+                        .id("relay-website")
+                        .cursor_pointer()
+                        .flex_shrink_0()
+                        .underline()
+                        .text_style(TextStyle::Caption)
+                        .text_color(cx.theme().danger)
+                        .child("Open relay website →")
+                        .on_click({
+                            let web_url = web_url.map(str::to_owned);
+
+                            move |_, _window, cx| {
+                                if let Some(url) = &web_url {
+                                    cx.open_url(url);
+                                }
+                            }
+                        }),
+                )
+            })
+    }
+}
+
+impl Render for NewGroup {
+    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        let selected = self
+            .selected_relay
+            .as_ref()
+            .map(relay_label)
+            .unwrap_or_else(|| "Custom relay…".into());
+
+        let web_url = self
+            .effective_relay(cx)
+            .ok()
+            .map(|relay| relay_web_url(&relay));
+
+        // The avatar fallback is seeded with the id, falling back to the name.
+        let id = self.id_input.read(cx).value().trim().to_lowercase();
+        let name = self.name_input.read(cx).value().trim().to_owned();
+        let seed: String = if !id.is_empty() {
+            id
+        } else if !name.is_empty() {
+            name
+        } else {
+            "group".to_owned()
+        };
+
+        v_flex()
+            .gap_3()
+            .child(
+                div()
+                    .text_style(TextStyle::Caption)
+                    .text_color(cx.theme().text_muted)
+                    .child(
+                        "Give your new group a name and description. You can always change these later.",
+                    ),
+            )
+            .child(
+                h_flex()
+                    .items_center()
+                    .gap_3()
+                    .child(Avatar::new(self.picture.clone()).seed(seed).large())
+                    .child(
+                        Button::new("upload-picture")
+                            .label(if self.picture.is_some() {
+                                "Change picture"
+                            } else {
+                                "Add a picture"
+                            })
+                            .xsmall()
+                            .ghost()
+                            .disabled(self.uploading)
+                            .loading(self.uploading)
+                            .on_click(cx.listener(|this, _event, window, cx| {
+                                this.upload(window, cx);
+                            })),
+                    ),
+            )
+            .child(field("Group Name", Input::new(&self.name_input), cx))
+            .when(self.show_custom_id, |this| {
+                this.child(
+                    v_flex()
+                        .gap_1()
+                        .child(field("Group ID (optional)", Input::new(&self.id_input), cx))
+                        .child(
+                            div()
+                                .text_style(TextStyle::Caption)
+                                .text_color(cx.theme().text_faint)
+                                .child(
+                                    "Leave empty for a random ID. The relay may override your choice.",
+                                ),
+                        ),
+                )
+            })
+            .when(!self.show_custom_id, |this| {
+                this.child(
+                    div()
+                        .id("show-custom-id")
+                        .cursor_pointer()
+                        .underline()
+                        .text_style(TextStyle::Caption)
+                        .text_color(cx.theme().accent)
+                        .child("Set a custom ID")
+                        .on_click(cx.listener(|this, _event, _window, cx| {
+                            this.show_custom_id = true;
+                            cx.notify();
+                        })),
+                )
+            })
+            .child(self.render_relay(&selected, cx))
+            .child(field("Description", Textarea::new(&self.about_input), cx))
+            .child(self.render_access(cx))
+            .child(self.render_list_setting(cx))
+            .when_some(self.error.clone(), |this, error| {
+                this.child(self.render_error(&error, web_url.as_deref(), cx))
+            })
             .child(
                 h_flex()
                     .gap_1()
@@ -47,95 +651,89 @@ pub fn open(window: &mut Window, cx: &mut App) {
                     )
                     .child(
                         Button::new("create")
-                            .icon(IconName::ArrowRight)
-                            .icon_position(IconPosition::End)
-                            .label("Create")
+                            .label(if self.parent.is_some() {
+                                "Create Channel"
+                            } else {
+                                "Create Group"
+                            })
                             .primary()
                             .font_semibold()
-                            .on_click({
-                                let submit = submit.clone();
-                                move |event, window, cx| {
-                                    if submit(event, window, cx) {
-                                        window.close_dialog(cx);
-                                    }
-                                }
-                            }),
+                            .loading(self.creating)
+                            .disabled(self.creating || self.uploading)
+                            .on_click(cx.listener(|this, _event, _window, cx| this.create(cx))),
                     ),
             )
-    });
+    }
 }
 
-fn field(label: &'static str, input: &Entity<InputState>, cx: &App) -> Div {
-    v_flex()
-        .gap_1()
-        .text_style(TextStyle::Callout)
+fn field(text: &'static str, input: impl IntoElement, cx: &App) -> Div {
+    v_flex().gap_1().child(field_label(text, cx)).child(input)
+}
+
+fn field_label(text: &'static str, cx: &App) -> Div {
+    div()
+        .text_style(TextStyle::Caption)
         .text_color(cx.theme().text_muted)
-        .child(label)
-        .child(Input::new(input))
+        .font_semibold()
+        .child(text)
 }
 
-fn create(
-    name: &Entity<InputState>,
-    id: &Entity<InputState>,
-    relay: &Entity<InputState>,
-    window: &mut Window,
-    cx: &mut App,
-) -> bool {
-    let name_value = name.read(cx).value().trim().to_owned();
-    let raw_id = id.read(cx).value().trim().to_owned();
-    let raw_relay = relay.read(cx).value().trim().to_owned();
+fn switch_row(switch: impl IntoElement, cx: &App) -> Div {
+    div()
+        .w_full()
+        .p_2()
+        .rounded(px(control_radius()))
+        .bg(cx.theme().surface_raised)
+        .child(switch)
+}
 
-    if name_value.is_empty() {
-        window.push_notification(Notification::error("Enter a group name"), cx);
-        return false;
-    }
+fn relay_label(relay: &RelayUrl) -> SharedString {
+    relay
+        .as_str()
+        .trim_start_matches("wss://")
+        .trim_start_matches("ws://")
+        .to_owned()
+        .into()
+}
 
-    let id = if raw_id.is_empty() {
-        slug(&name_value)
+fn relay_web_url(relay: &RelayUrl) -> String {
+    relay
+        .as_str()
+        .replacen("wss://", "https://", 1)
+        .replacen("ws://", "http://", 1)
+}
+
+/// Whether the relay's website likely resolves the rejection.
+fn shows_relay_website(error: &str) -> bool {
+    let error = error.to_lowercase();
+    [
+        "website",
+        "not allowed",
+        "restricted",
+        "authorization",
+        "auth-required",
+        "blocked",
+    ]
+    .iter()
+    .any(|hint| error.contains(hint))
+}
+
+/// Map raw relay rejection reasons to user-facing copy (nostrord parity).
+fn friendly_error(raw: &str) -> SharedString {
+    let lowered = raw.to_lowercase();
+
+    if lowered.contains("blocked:") {
+        "Group creation on this relay must be done via the relay's website.".into()
+    } else if lowered.contains("auth-required")
+        || lowered.contains("not allowed")
+        || lowered.contains("restricted")
+    {
+        "This relay requires authorization to create groups.".into()
+    } else if lowered.contains("did not respond") || lowered.contains("timeout") {
+        "Relay did not respond. Try again.".into()
+    } else if lowered.contains("not connected") {
+        "Not connected to relay. Try again.".into()
     } else {
-        raw_id
-    };
-
-    let id = match GroupId::new(id) {
-        Ok(id) => id,
-        Err(error) => {
-            window.push_notification(Notification::error(error.to_string()), cx);
-            return false;
-        }
-    };
-
-    let relay = match RelayUrl::parse(&raw_relay) {
-        Ok(relay) => relay,
-        Err(error) => {
-            window.push_notification(Notification::error(error.to_string()), cx);
-            return false;
-        }
-    };
-
-    let mut metadata = GroupMetadata::default();
-    metadata.name = Some(name_value);
-
-    let registry = GroupsRegistry::global(cx);
-    registry.update(cx, |registry, cx| {
-        registry.create(GroupKey::new(relay, id), metadata, cx);
-    });
-
-    true
-}
-
-fn slug(name: &str) -> String {
-    let mut slug = String::with_capacity(name.len());
-    let mut separator = false;
-
-    for character in name.chars() {
-        if character.is_ascii_alphanumeric() {
-            slug.push(character.to_ascii_lowercase());
-            separator = false;
-        } else if !separator && !slug.is_empty() {
-            slug.push('-');
-            separator = true;
-        }
+        raw.into()
     }
-
-    slug.trim_end_matches('-').to_owned()
 }
diff --git a/crates/workspace/src/lib.rs b/crates/workspace/src/lib.rs
index 0fc22453..4f7f258b 100644
--- a/crates/workspace/src/lib.rs
+++ b/crates/workspace/src/lib.rs
@@ -14,7 +14,7 @@ use nostr_sdk::prelude::*;
 use serde::Deserialize;
 use smallvec::{SmallVec, smallvec};
 use state::{NostrRegistry, StateEvent};
-use theme::{ActiveTheme, TextStyle, Typeset as _, SIDEBAR_WIDTH, Theme};
+use theme::{ActiveTheme, SIDEBAR_WIDTH, TextStyle, Theme, Typeset as _};
 use ui::button::Button;
 use ui::dock::{self, DockArea, DockLayout, DockPlacement, Panel, PanelHandle};
 use ui::notification::{Notification, NotificationKind};
@@ -298,7 +298,7 @@ impl Workspace {
                 new_chat::open(self.dock.downgrade(), window, cx);
             }
             Command::NewGroup => {
-                new_group::open(window, cx);
+                new_group::open(self.dock.downgrade(), window, cx);
             }
             Command::JoinGroup => {
                 join_group::open(window, cx);
@@ -370,6 +370,25 @@ impl Workspace {
         }
     }
 
+    /// Open the channel creation dialog under the action's group.
+    fn on_create_channel(
+        &mut self,
+        action: &nip29_ui::CreateChannel,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        let Ok(id) = GroupId::new(action.parent.clone()) else {
+            return;
+        };
+
+        new_group::open_channel(
+            self.dock.downgrade(),
+            GroupKey::new(action.relay.clone(), id),
+            window,
+            cx,
+        );
+    }
+
     /// Show the sidebar's information for the group a panel belongs to.
     fn show_group_meta(&mut self, action: &nip29_ui::ShowGroupMeta, cx: &mut Context<Self>) {
         let Ok(id) = GroupId::new(action.group.clone()) else {
@@ -453,6 +472,7 @@ impl Render for Workspace {
         div()
             .id("workspace")
             .on_action(cx.listener(Self::on_command))
+            .on_action(cx.listener(Self::on_create_channel))
             .relative()
             .size_full()
             .child(self.dock.clone())
diff --git a/crates/workspace/src/sidebar/mod.rs b/crates/workspace/src/sidebar/mod.rs
index 5fa0f8e2..45d7d471 100644
--- a/crates/workspace/src/sidebar/mod.rs
+++ b/crates/workspace/src/sidebar/mod.rs
@@ -127,6 +127,12 @@ impl Sidebar {
                     GroupsEvent::Error(error) => {
                         window.push_notification(Notification::error(error.clone()), cx);
                     }
+                    GroupsEvent::Created {
+                        warning: Some(warning),
+                        ..
+                    } => {
+                        window.push_notification(Notification::warning(warning.clone()), cx);
+                    }
                     _ => {}
                 };
             }),