diff --git a/src/app/globals.css b/src/app/globals.css
index ece39bc..572b73f 100644
--- a/src/app/globals.css
+++ b/src/app/globals.css
@@ -67,7 +67,6 @@ table td {
   vertical-align: top;
   position: relative;
   min-width: 120px;
-  min-height: 2.5rem;
   background-color: transparent;
 }
 
@@ -149,12 +148,13 @@ table th {
 /* Spreadsheet-like cell styling */
 .editable-cell {
   width: 100%;
-  height: 100%;
   min-height: 2.5rem;
+  max-height: 12rem;
   display: flex;
-  align-items: center;
+  align-items: flex-start;
   padding: 0.5rem;
   position: relative;
+  overflow: hidden;
 }
 
 .editable-cell input,
@@ -172,16 +172,6 @@ table th {
   resize: none;
 }
 
-/* Subtle focus state for the entire cell */
-.editable-cell:focus-within {
-  background-color: rgba(59, 130, 246, 0.05); /* Very subtle blue tint */
-}
-
-/* Dark mode focus state */
-.dark .editable-cell:focus-within {
-  background-color: rgba(59, 130, 246, 0.1);
-}
-
 
 /* =================================
    TYPEAHEAD STYLES
diff --git a/src/components/EditableCell.tsx b/src/components/EditableCell.tsx
index 4b45ed4..2385848 100644
--- a/src/components/EditableCell.tsx
+++ b/src/components/EditableCell.tsx
@@ -1,4 +1,4 @@
-import React, { useState, useEffect, useCallback, useRef } from 'react';
+import React, { useState, useEffect, useCallback, useRef, useLayoutEffect } from 'react';
 
 interface EditableCellProps {
   value: string;
@@ -62,6 +62,40 @@ export function EditableCell({
       }
     }
   }, [focusedCell, cellKey, inputType]);
+
+  // Auto-resize textarea based on content
+  const autoResize = useCallback(() => {
+    if (inputType === 'textarea' && textareaRef.current) {
+      const textarea = textareaRef.current;
+
+      // Reset height to auto to get the correct scrollHeight
+      textarea.style.height = 'auto';
+
+      // Calculate the required height
+      const scrollHeight = textarea.scrollHeight;
+      const minHeight = 40; // 2.5rem = 40px
+      const maxHeight = 192; // 12rem = 192px
+
+      // Set height within bounds
+      const newHeight = Math.min(Math.max(scrollHeight, minHeight), maxHeight);
+      textarea.style.height = `${newHeight}px`;
+
+      // Enable scrolling if content exceeds max height
+      textarea.style.overflowY = scrollHeight > maxHeight ? 'auto' : 'hidden';
+    }
+  }, [inputType]);
+
+  // Auto-resize on content change
+  useLayoutEffect(() => {
+    autoResize();
+  }, [localValue, autoResize]);
+
+  // Auto-resize on focus (in case content was updated externally)
+  useEffect(() => {
+    if (focusedCell === cellKey) {
+      autoResize();
+    }
+  }, [focusedCell, cellKey, autoResize]);
   
   const handleInput = useCallback((e: React.ChangeEvent<HTMLInputElement | HTMLTextAreaElement>) => {
     const newValue = e.target.value;
@@ -105,6 +139,7 @@ export function EditableCell({
     w-full h-full bg-transparent text-inherit
     border-none outline-none focus:outline-none resize-none
     placeholder:text-gray-400 dark:placeholder:text-gray-500
+    leading-relaxed
     ${className}
   `.trim();
   
@@ -118,14 +153,20 @@ export function EditableCell({
           onFocus={handleFocus}
           onBlur={handleBlur}
           onKeyDown={handleKeyDown}
+          onInput={autoResize}
           placeholder={placeholder}
           className={baseClassName}
-          style={{ minHeight: '2.5rem' }}
+          style={{ 
+            minHeight: '2.5rem',
+            resize: 'none',
+            overflow: 'hidden'
+          }}
+          rows={1} // Start with single row
         />
       </div>
     );
   }
-  
+
   return (
     <div className="editable-cell">
       <input