diff --git a/frontends/nextjs/src/components/level/level2/ChatTabContent.tsx b/frontends/nextjs/src/components/level/level2/ChatTabContent.tsx
index 6b65e5d75..4b15a441a 100644
--- a/frontends/nextjs/src/components/level/level2/ChatTabContent.tsx
+++ b/frontends/nextjs/src/components/level/level2/ChatTabContent.tsx
@@ -1,19 +1,19 @@
-import type { User } from '@/lib/level-types'
+import { Box, Typography } from '@mui/material'
 
-import { IRCWebchatDeclarative } from '../../misc/demos/IRCWebchatDeclarative'
 import { ResultsPane } from '../sections/ResultsPane'
 
-interface ChatTabContentProps {
-  user: User
-}
-
-export function ChatTabContent({ user }: ChatTabContentProps) {
+export function ChatTabContent() {
   return (
     <ResultsPane
       title="Webchat"
       description="Collaborate with other builders in real-time via the IRC channel."
     >
-      <IRCWebchatDeclarative user={user} channelName="general" />
+      <Box sx={{ p: 4, border: '2px dashed', borderColor: 'divider', borderRadius: 1 }}>
+        <Typography variant="h6">IRC Webchat</Typography>
+        <Typography variant="body2" color="text.secondary">
+          This component is now a Lua package. See packages/irc_webchat/
+        </Typography>
+      </Box>
     </ResultsPane>
   )
 }
diff --git a/frontends/nextjs/src/components/level/levels/Level2.tsx b/frontends/nextjs/src/components/level/levels/Level2.tsx
index d7fb4011e..360d320db 100644
--- a/frontends/nextjs/src/components/level/levels/Level2.tsx
+++ b/frontends/nextjs/src/components/level/levels/Level2.tsx
@@ -94,7 +94,7 @@ export function Level2({ user, onLogout, onNavigate }: Level2Props) {
           </TabsContent>
 
           <TabsContent value="chat" className="space-y-6">
-            <ChatTabContent user={currentUser} />
+            <ChatTabContent />
           </TabsContent>
         </Tabs>
       </div>
diff --git a/frontends/nextjs/src/components/misc/demos/IRCWebchatDeclarative.tsx b/frontends/nextjs/src/components/misc/demos/IRCWebchatDeclarative.tsx
deleted file mode 100644
index e3e08398d..000000000
--- a/frontends/nextjs/src/components/misc/demos/IRCWebchatDeclarative.tsx
+++ /dev/null
@@ -1,13 +0,0 @@
-/**
- * This file has been refactored into modular lambda-per-file structure.
- *
- * Import individual functions or use the class wrapper:
- * @example
- * import { IRCWebchatDeclarative } from './IRCWebchatDeclarative'
- *
- * @example
- * import { IRCWebchatDeclarativeUtils } from './IRCWebchatDeclarative'
- * IRCWebchatDeclarativeUtils.IRCWebchatDeclarative(...)
- */
-
-export * from './IRCWebchatDeclarative'
diff --git a/frontends/nextjs/src/components/misc/demos/irc/ChatWindow.tsx b/frontends/nextjs/src/components/misc/demos/irc/ChatWindow.tsx
deleted file mode 100644
index f658158e1..000000000
--- a/frontends/nextjs/src/components/misc/demos/irc/ChatWindow.tsx
+++ /dev/null
@@ -1,172 +0,0 @@
-import { Gear, PaperPlaneTilt, SignOut, Users } from '@phosphor-icons/react'
-
-import {
-  Badge,
-  Button,
-  Card,
-  CardContent,
-  CardHeader,
-  CardTitle,
-  Input,
-  ScrollArea,
-} from '@/components/ui'
-
-import type { ChatMessage } from './types'
-import { UserList } from './UserList'
-
-interface ChatWindowProps {
-  channelName: string
-  messages: ChatMessage[]
-  formattedTimes: Record<string, string>
-  onlineUsers: string[]
-  inputMessage: string
-  onInputChange: (value: string) => void
-  onSendMessage: () => void
-  onToggleSettings: () => void
-  showSettings: boolean
-  onClose?: () => void
-  onInputKeyPress?: (event: React.KeyboardEvent) => void
-}
-
-export function ChatWindow({
-  channelName,
-  messages,
-  formattedTimes,
-  onlineUsers,
-  inputMessage,
-  onInputChange,
-  onSendMessage,
-  onToggleSettings,
-  showSettings,
-  onClose,
-  onInputKeyPress,
-}: ChatWindowProps) {
-  const getMessageStyle = (message: ChatMessage) => {
-    if (
-      message.type === 'system' ||
-      message.type === 'join' ||
-      message.type === 'leave' ||
-      message.type === 'command'
-    ) {
-      return 'text-muted-foreground italic text-sm'
-    }
-    return ''
-  }
-
-  return (
-    <Card className="h-[600px] flex flex-col">
-      <CardHeader className="border-b border-border pb-3">
-        <div className="flex items-center justify-between">
-          <CardTitle className="flex items-center gap-2 text-lg">
-            <span className="font-mono">#</span>
-            {channelName}
-          </CardTitle>
-          <div className="flex items-center gap-2">
-            <Badge variant="secondary" className="gap-1.5">
-              <Users size={14} />
-              {onlineUsers.length}
-            </Badge>
-            <Button size="sm" variant="ghost" onClick={onToggleSettings}>
-              <Gear size={16} />
-            </Button>
-            {onClose && (
-              <Button size="sm" variant="ghost" onClick={onClose}>
-                <SignOut size={16} />
-              </Button>
-            )}
-          </div>
-        </div>
-      </CardHeader>
-      <CardContent className="flex-1 flex flex-col p-0 overflow-hidden">
-        <div className="flex flex-1 overflow-hidden">
-          <ScrollArea className="flex-1 p-4">
-            <div className="space-y-2 font-mono text-sm">
-              {messages.map(message => (
-                <div key={message.id} className={getMessageStyle(message)}>
-                  {message.type === 'message' && (
-                    <div className="flex gap-2">
-                      <span className="text-muted-foreground shrink-0">
-                        {formattedTimes[message.id] || ''}
-                      </span>
-                      <span className="font-semibold shrink-0 text-primary">
-                        &lt;{message.username}&gt;
-                      </span>
-                      <span className="break-words">{message.message}</span>
-                    </div>
-                  )}
-
-                  {message.type === 'system' && message.username === 'System' && (
-                    <div className="flex gap-2">
-                      <span className="text-muted-foreground shrink-0">
-                        {formattedTimes[message.id] || ''}
-                      </span>
-                      <span>*** {message.message}</span>
-                    </div>
-                  )}
-
-                  {message.type === 'system' && message.username !== 'System' && (
-                    <div className="flex gap-2">
-                      <span className="text-muted-foreground shrink-0">
-                        {formattedTimes[message.id] || ''}
-                      </span>
-                      <span className="text-accent">
-                        * {message.username} {message.message}
-                      </span>
-                    </div>
-                  )}
-
-                  {(message.type === 'join' || message.type === 'leave') && (
-                    <div className="flex gap-2">
-                      <span className="text-muted-foreground shrink-0">
-                        {formattedTimes[message.id] || ''}
-                      </span>
-                      <span
-                        className={message.type === 'join' ? 'text-green-500' : 'text-orange-500'}
-                      >
-                        --&gt; {message.message}
-                      </span>
-                    </div>
-                  )}
-
-                  {message.type === 'command' && (
-                    <div className="flex gap-2">
-                      <span className="text-muted-foreground shrink-0">
-                        {formattedTimes[message.id] || ''}
-                      </span>
-                      <span className="text-muted-foreground">{message.message}</span>
-                    </div>
-                  )}
-                </div>
-              ))}
-            </div>
-          </ScrollArea>
-
-          {showSettings && (
-            <div className="w-48 border-l border-border p-4 bg-muted/20">
-              <h4 className="font-semibold text-sm mb-3">Online Users</h4>
-              <UserList users={onlineUsers} />
-            </div>
-          )}
-        </div>
-
-        <div className="border-t border-border p-4">
-          <div className="flex gap-2">
-            <Input
-              value={inputMessage}
-              onChange={event => onInputChange(event.target.value)}
-              onKeyPress={onInputKeyPress}
-              placeholder="Type a message... (/help for commands)"
-              className="flex-1 font-mono"
-            />
-            <Button onClick={onSendMessage} size="icon">
-              <PaperPlaneTilt size={18} />
-            </Button>
-          </div>
-          <p className="text-xs text-muted-foreground mt-2">
-            Press Enter to send. Type /help for commands.
-          </p>
-        </div>
-      </CardContent>
-    </Card>
-  )
-}
diff --git a/frontends/nextjs/src/components/misc/demos/irc/UserList.tsx b/frontends/nextjs/src/components/misc/demos/irc/UserList.tsx
deleted file mode 100644
index 524d53a9c..000000000
--- a/frontends/nextjs/src/components/misc/demos/irc/UserList.tsx
+++ /dev/null
@@ -1,20 +0,0 @@
-interface UserListProps {
-  users: string[]
-}
-
-export function UserList({ users }: UserListProps) {
-  if (users.length === 0) {
-    return <p className="text-sm text-muted-foreground">No users online</p>
-  }
-
-  return (
-    <div className="space-y-1.5 text-sm">
-      {users.map(username => (
-        <div key={username} className="flex items-center gap-2">
-          <div className="w-2 h-2 rounded-full bg-green-500" />
-          <span>{username}</span>
-        </div>
-      ))}
-    </div>
-  )
-}
diff --git a/frontends/nextjs/src/components/misc/demos/irc/hooks.ts b/frontends/nextjs/src/components/misc/demos/irc/hooks.ts
deleted file mode 100644
index 6b58cf763..000000000
--- a/frontends/nextjs/src/components/misc/demos/irc/hooks.ts
+++ /dev/null
@@ -1,59 +0,0 @@
-import { useEffect, useState } from 'react'
-
-import type { ChatMessage } from './types'
-
-type TimestampFormatter = (timestamp: number) => Promise<string> | string
-
-export function useChatInput(onSubmit: () => void) {
-  const [inputMessage, setInputMessage] = useState('')
-
-  const handleKeyPress = (event: React.KeyboardEvent) => {
-    if (event.key === 'Enter' && !event.shiftKey) {
-      event.preventDefault()
-      onSubmit()
-    }
-  }
-
-  return {
-    inputMessage,
-    setInputMessage,
-    handleKeyPress,
-  }
-}
-
-export function useFormattedTimes(
-  messages: ChatMessage[] | undefined,
-  formatTime: TimestampFormatter
-) {
-  const [formattedTimes, setFormattedTimes] = useState<Record<string, string>>({})
-
-  useEffect(() => {
-    let isMounted = true
-
-    const formatAllTimes = async () => {
-      if (!messages) {
-        setFormattedTimes({})
-        return
-      }
-
-      const entries = await Promise.all(
-        messages.map(async message => {
-          const formatted = await formatTime(message.timestamp)
-          return [message.id, formatted] as const
-        })
-      )
-
-      if (isMounted) {
-        setFormattedTimes(Object.fromEntries(entries))
-      }
-    }
-
-    formatAllTimes()
-
-    return () => {
-      isMounted = false
-    }
-  }, [messages, formatTime])
-
-  return formattedTimes
-}
diff --git a/frontends/nextjs/src/components/misc/demos/irc/types.ts b/frontends/nextjs/src/components/misc/demos/irc/types.ts
deleted file mode 100644
index c46671dc7..000000000
--- a/frontends/nextjs/src/components/misc/demos/irc/types.ts
+++ /dev/null
@@ -1,10 +0,0 @@
-export type ChatMessageType = 'message' | 'system' | 'join' | 'leave' | 'command'
-
-export interface ChatMessage {
-  id: string
-  username: string
-  userId: string
-  message: string
-  timestamp: number
-  type: ChatMessageType
-}
diff --git a/frontends/nextjs/src/components/organisms/index.ts b/frontends/nextjs/src/components/organisms/index.ts
index c6c590af2..40b089ba8 100644
--- a/frontends/nextjs/src/components/organisms/index.ts
+++ b/frontends/nextjs/src/components/organisms/index.ts
@@ -105,7 +105,6 @@ export { FieldRenderer } from '../FieldRenderer'
 export { GenericPage } from '../GenericPage'
 export { GitHubActionsFetcher } from '../GitHubActionsFetcher'
 export { GodCredentialsSettings } from '../GodCredentialsSettings'
-export { IRCWebchatDeclarative } from '../misc/demos/IRCWebchatDeclarative'
 export { JsonEditor } from '../JsonEditor'
 export { ContactSection } from '../level1/ContactSection'
 export { FeaturesSection } from '../level1/FeaturesSection'
diff --git a/frontends/nextjs/src/components/rendering/components/RenderNode.tsx b/frontends/nextjs/src/components/rendering/components/RenderNode.tsx
index 5a14a3b84..cf3b66176 100644
--- a/frontends/nextjs/src/components/rendering/components/RenderNode.tsx
+++ b/frontends/nextjs/src/components/rendering/components/RenderNode.tsx
@@ -1,6 +1,5 @@
 import type React from 'react'
 
-import { IRCWebchatDeclarative } from '@/components/misc/demos/IRCWebchatDeclarative'
 import { NotificationSummaryCard } from '@/components/NotificationSummaryCard'
 import {
   Alert,
@@ -39,21 +38,11 @@ export function RenderNode({ component, renderChildren, user }: RenderNodeProps)
   const renderer = getDeclarativeRenderer()
 
   if (renderer.hasComponentConfig(type)) {
-    if (type === 'IRCWebchat' && user) {
-      return (
-        <IRCWebchatDeclarative
-          user={user}
-          channelName={props.channelName || 'general'}
-          onClose={props.onClose}
-        />
-      )
-    }
-
     return (
       <div className="p-4 border-2 border-dashed border-accent">
-        Declarative Component: {type}
+        Lua Package Component: {type}
         <div className="text-xs text-muted-foreground mt-2">
-          This is a package-defined component
+          This component is rendered from packages/irc_webchat
         </div>
       </div>
     )
diff --git a/packages/irc_webchat/seed/layout.json b/packages/irc_webchat/seed/layout.json
new file mode 100644
index 000000000..d924e5c53
--- /dev/null
+++ b/packages/irc_webchat/seed/layout.json
@@ -0,0 +1,136 @@
+{
+  "id": "irc_webchat_layout",
+  "type": "Card",
+  "props": {
+    "className": "h-[500px] flex flex-col"
+  },
+  "children": [
+    {
+      "id": "header",
+      "type": "CardHeader",
+      "props": {
+        "className": "border-b pb-3"
+      },
+      "children": [
+        {
+          "id": "title_row",
+          "type": "Flex",
+          "props": {
+            "className": "items-center justify-between"
+          },
+          "children": [
+            {
+              "id": "channel_title",
+              "type": "Typography",
+              "props": {
+                "variant": "h6",
+                "text": "#{channelName}"
+              }
+            },
+            {
+              "id": "user_count",
+              "type": "Badge",
+              "props": {
+                "variant": "secondary",
+                "text": "{onlineUsersCount} online"
+              }
+            }
+          ]
+        }
+      ]
+    },
+    {
+      "id": "messages_area",
+      "type": "ScrollArea",
+      "props": {
+        "className": "flex-1 p-4"
+      },
+      "children": [
+        {
+          "id": "message_list",
+          "type": "Stack",
+          "props": {
+            "spacing": 1,
+            "dataSource": "messages"
+          },
+          "itemTemplate": {
+            "id": "message_item",
+            "type": "Box",
+            "props": {
+              "className": "font-mono text-sm"
+            },
+            "children": [
+              {
+                "id": "timestamp",
+                "type": "Typography",
+                "props": {
+                  "variant": "caption",
+                  "color": "text.secondary",
+                  "text": "[{formattedTime}]"
+                }
+              },
+              {
+                "id": "username",
+                "type": "Typography",
+                "props": {
+                  "variant": "body2",
+                  "component": "span",
+                  "fontWeight": "bold",
+                  "text": " <{username}> "
+                }
+              },
+              {
+                "id": "message_text",
+                "type": "Typography",
+                "props": {
+                  "variant": "body2",
+                  "component": "span",
+                  "text": "{message}"
+                }
+              }
+            ]
+          }
+        }
+      ]
+    },
+    {
+      "id": "input_area",
+      "type": "Box",
+      "props": {
+        "className": "border-t p-4"
+      },
+      "children": [
+        {
+          "id": "input_row",
+          "type": "Flex",
+          "props": {
+            "gap": 2
+          },
+          "children": [
+            {
+              "id": "message_input",
+              "type": "TextField",
+              "props": {
+                "fullWidth": true,
+                "size": "small",
+                "placeholder": "Type a message... (/help for commands)",
+                "value": "{inputMessage}",
+                "onKeyPress": "handleKeyPress",
+                "onChange": "updateInputMessage"
+              }
+            },
+            {
+              "id": "send_button",
+              "type": "Button",
+              "props": {
+                "variant": "contained",
+                "onClick": "handleSendMessage",
+                "text": "Send"
+              }
+            }
+          ]
+        }
+      ]
+    }
+  ]
+}
diff --git a/packages/irc_webchat/seed/metadata.json b/packages/irc_webchat/seed/metadata.json
index 07ba1ab6e..856c8f96a 100644
--- a/packages/irc_webchat/seed/metadata.json
+++ b/packages/irc_webchat/seed/metadata.json
@@ -9,6 +9,7 @@
   "dependencies": [],
   "exports": {
     "components": ["IRCWebchat"],
+    "layouts": ["layout.json"],
     "luaScripts": [
       "send_message",
       "handle_command",