diff --git a/src/components/error/AIErrorHelper.tsx b/src/components/error/AIErrorHelper.tsx
index 2c77e5c..4920729 100644
--- a/src/components/error/AIErrorHelper.tsx
+++ b/src/components/error/AIErrorHelper.tsx
@@ -10,6 +10,9 @@ import {
 import { Alert, AlertDescription } from '@/components/ui/alert'
 import { Sparkle } from '@phosphor-icons/react'
 import { motion, AnimatePresence } from 'framer-motion'
+import { analyzeErrorWithAI } from './analyzeError'
+import { MarkdownRenderer } from './MarkdownRenderer'
+import { LoadingAnalysis } from './LoadingAnalysis'
 
 interface AIErrorHelperProps {
   error: Error | string
@@ -33,20 +36,7 @@ export function AIErrorHelper({ error, context, className }: AIErrorHelperProps)
     setAnalysis('')
 
     try {
-      const contextInfo = context ? `\n\nContext: ${context}` : ''
-      const stackInfo = errorStack ? `\n\nStack trace: ${errorStack}` : ''
-      
-      const prompt = (window.spark.llmPrompt as any)`You are a helpful debugging assistant for a code snippet manager app. Analyze this error and provide:
-
-1. A clear explanation of what went wrong (in plain language)
-2. Why this error likely occurred
-3. 2-3 specific actionable steps to fix it
-
-Error message: ${errorMessage}${contextInfo}${stackInfo}
-
-Keep your response concise, friendly, and focused on practical solutions. Format your response with clear sections using markdown.`
-
-      const result = await window.spark.llm(prompt, 'gpt-4o-mini')
+      const result = await analyzeErrorWithAI(errorMessage, errorStack, context)
       setAnalysis(result)
     } catch (err) {
       setAnalysisError('Unable to analyze error. The AI service may be temporarily unavailable.')
@@ -98,30 +88,7 @@ Keep your response concise, friendly, and focused on practical solutions. Format
               </AlertDescription>
             </Alert>
 
-            {isAnalyzing && (
-              <div className="space-y-3">
-                <div className="flex items-center gap-2 text-muted-foreground">
-                  <motion.div
-                    animate={{ rotate: 360 }}
-                    transition={{ duration: 1, repeat: Infinity, ease: 'linear' }}
-                  >
-                    <Sparkle className="h-4 w-4" weight="fill" />
-                  </motion.div>
-                  <span className="text-sm">Analyzing error...</span>
-                </div>
-                <div className="space-y-2">
-                  {[1, 2, 3].map((i) => (
-                    <motion.div
-                      key={i}
-                      initial={{ opacity: 0.3 }}
-                      animate={{ opacity: [0.3, 0.6, 0.3] }}
-                      transition={{ duration: 1.5, repeat: Infinity, delay: i * 0.2 }}
-                      className="h-4 bg-muted rounded"
-                    />
-                  ))}
-                </div>
-              </div>
-            )}
+            {isAnalyzing && <LoadingAnalysis />}
 
             {analysisError && (
               <Alert variant="destructive">
@@ -130,55 +97,7 @@ Keep your response concise, friendly, and focused on practical solutions. Format
             )}
 
             <AnimatePresence>
-              {analysis && (
-                <motion.div
-                  initial={{ opacity: 0, y: 10 }}
-                  animate={{ opacity: 1, y: 0 }}
-                  exit={{ opacity: 0 }}
-                  className="prose prose-invert prose-sm max-w-none"
-                >
-                  <div className="bg-card/50 rounded-lg p-4 border border-border space-y-3">
-                    {analysis.split('\n').map((line, idx) => {
-                      if (line.startsWith('###')) {
-                        return (
-                          <h3 key={idx} className="text-base font-semibold text-foreground mt-4 mb-2">
-                            {line.replace('###', '').trim()}
-                          </h3>
-                        )
-                      }
-                      if (line.startsWith('##')) {
-                        return (
-                          <h2 key={idx} className="text-lg font-semibold text-foreground mt-4 mb-2">
-                            {line.replace('##', '').trim()}
-                          </h2>
-                        )
-                      }
-                      if (line.match(/^\d+\./)) {
-                        return (
-                          <div key={idx} className="text-foreground/90 ml-2">
-                            {line}
-                          </div>
-                        )
-                      }
-                      if (line.startsWith('-')) {
-                        return (
-                          <div key={idx} className="text-foreground/90 ml-4">
-                            {line}
-                          </div>
-                        )
-                      }
-                      if (line.trim()) {
-                        return (
-                          <p key={idx} className="text-foreground/80 text-sm leading-relaxed">
-                            {line}
-                          </p>
-                        )
-                      }
-                      return null
-                    })}
-                  </div>
-                </motion.div>
-              )}
+              {analysis && <MarkdownRenderer content={analysis} />}
             </AnimatePresence>
           </div>
         </DialogContent>
diff --git a/src/components/error/LoadingAnalysis.tsx b/src/components/error/LoadingAnalysis.tsx
new file mode 100644
index 0000000..64b0f0e
--- /dev/null
+++ b/src/components/error/LoadingAnalysis.tsx
@@ -0,0 +1,29 @@
+import { motion } from 'framer-motion'
+import { Sparkle } from '@phosphor-icons/react'
+
+export function LoadingAnalysis() {
+  return (
+    <div className="space-y-3">
+      <div className="flex items-center gap-2 text-muted-foreground">
+        <motion.div
+          animate={{ rotate: 360 }}
+          transition={{ duration: 1, repeat: Infinity, ease: 'linear' }}
+        >
+          <Sparkle className="h-4 w-4" weight="fill" />
+        </motion.div>
+        <span className="text-sm">Analyzing error...</span>
+      </div>
+      <div className="space-y-2">
+        {[1, 2, 3].map((i) => (
+          <motion.div
+            key={i}
+            initial={{ opacity: 0.3 }}
+            animate={{ opacity: [0.3, 0.6, 0.3] }}
+            transition={{ duration: 1.5, repeat: Infinity, delay: i * 0.2 }}
+            className="h-4 bg-muted rounded"
+          />
+        ))}
+      </div>
+    </div>
+  )
+}
diff --git a/src/components/error/MarkdownRenderer.tsx b/src/components/error/MarkdownRenderer.tsx
new file mode 100644
index 0000000..434d02d
--- /dev/null
+++ b/src/components/error/MarkdownRenderer.tsx
@@ -0,0 +1,57 @@
+import { motion } from 'framer-motion'
+
+interface MarkdownRendererProps {
+  content: string
+}
+
+export function MarkdownRenderer({ content }: MarkdownRendererProps) {
+  return (
+    <motion.div
+      initial={{ opacity: 0, y: 10 }}
+      animate={{ opacity: 1, y: 0 }}
+      exit={{ opacity: 0 }}
+      className="prose prose-invert prose-sm max-w-none"
+    >
+      <div className="bg-card/50 rounded-lg p-4 border border-border space-y-3">
+        {content.split('\n').map((line, idx) => {
+          if (line.startsWith('###')) {
+            return (
+              <h3 key={idx} className="text-base font-semibold text-foreground mt-4 mb-2">
+                {line.replace('###', '').trim()}
+              </h3>
+            )
+          }
+          if (line.startsWith('##')) {
+            return (
+              <h2 key={idx} className="text-lg font-semibold text-foreground mt-4 mb-2">
+                {line.replace('##', '').trim()}
+              </h2>
+            )
+          }
+          if (line.match(/^\d+\./)) {
+            return (
+              <div key={idx} className="text-foreground/90 ml-2">
+                {line}
+              </div>
+            )
+          }
+          if (line.startsWith('-')) {
+            return (
+              <div key={idx} className="text-foreground/90 ml-4">
+                {line}
+              </div>
+            )
+          }
+          if (line.trim()) {
+            return (
+              <p key={idx} className="text-foreground/80 text-sm leading-relaxed">
+                {line}
+              </p>
+            )
+          }
+          return null
+        })}
+      </div>
+    </motion.div>
+  )
+}
diff --git a/src/components/error/analyzeError.ts b/src/components/error/analyzeError.ts
new file mode 100644
index 0000000..de4c0fb
--- /dev/null
+++ b/src/components/error/analyzeError.ts
@@ -0,0 +1,21 @@
+export async function analyzeErrorWithAI(
+  errorMessage: string,
+  errorStack?: string,
+  context?: string
+): Promise<string> {
+  const contextInfo = context ? `\n\nContext: ${context}` : ''
+  const stackInfo = errorStack ? `\n\nStack trace: ${errorStack}` : ''
+  
+  const prompt = (window.spark.llmPrompt as any)`You are a helpful debugging assistant for a code snippet manager app. Analyze this error and provide:
+
+1. A clear explanation of what went wrong (in plain language)
+2. Why this error likely occurred
+3. 2-3 specific actionable steps to fix it
+
+Error message: ${errorMessage}${contextInfo}${stackInfo}
+
+Keep your response concise, friendly, and focused on practical solutions. Format your response with clear sections using markdown.`
+
+  const result = await window.spark.llm(prompt, 'gpt-4o-mini')
+  return result
+}
diff --git a/src/hooks/useDatabaseOperations.ts b/src/hooks/useDatabaseOperations.ts
new file mode 100644
index 0000000..ef74549
--- /dev/null
+++ b/src/hooks/useDatabaseOperations.ts
@@ -0,0 +1,138 @@
+import { useState, useCallback } from 'react'
+import { toast } from 'sonner'
+import { 
+  getDatabaseStats, 
+  exportDatabase, 
+  importDatabase, 
+  clearDatabase, 
+  seedDatabase,
+  validateDatabaseSchema
+} from '@/lib/db'
+
+export function useDatabaseOperations() {
+  const [stats, setStats] = useState<{
+    snippetCount: number
+    templateCount: number
+    storageType: 'indexeddb' | 'localstorage' | 'none'
+    databaseSize: number
+  } | null>(null)
+  const [loading, setLoading] = useState(true)
+  const [schemaHealth, setSchemaHealth] = useState<'unknown' | 'healthy' | 'corrupted'>('unknown')
+  const [checkingSchema, setCheckingSchema] = useState(false)
+
+  const loadStats = useCallback(async () => {
+    setLoading(true)
+    try {
+      const data = await getDatabaseStats()
+      setStats(data)
+    } catch (error) {
+      console.error('Failed to load stats:', error)
+      toast.error('Failed to load database statistics')
+    } finally {
+      setLoading(false)
+    }
+  }, [])
+
+  const checkSchemaHealth = useCallback(async () => {
+    setCheckingSchema(true)
+    try {
+      const result = await validateDatabaseSchema()
+      setSchemaHealth(result.valid ? 'healthy' : 'corrupted')
+      
+      if (!result.valid) {
+        console.warn('Schema validation failed:', result.issues)
+      }
+    } catch (error) {
+      console.error('Schema check failed:', error)
+      setSchemaHealth('corrupted')
+    } finally {
+      setCheckingSchema(false)
+    }
+  }, [])
+
+  const handleExport = useCallback(async () => {
+    try {
+      const data = await exportDatabase()
+      const blob = new Blob([new Uint8Array(data)], { type: 'application/octet-stream' })
+      const url = URL.createObjectURL(blob)
+      const a = document.createElement('a')
+      a.href = url
+      a.download = `codesnippet-backup-${Date.now()}.db`
+      document.body.appendChild(a)
+      a.click()
+      document.body.removeChild(a)
+      URL.revokeObjectURL(url)
+      toast.success('Database exported successfully')
+    } catch (error) {
+      console.error('Failed to export:', error)
+      toast.error('Failed to export database')
+    }
+  }, [])
+
+  const handleImport = useCallback(async (event: React.ChangeEvent<HTMLInputElement>) => {
+    const file = event.target.files?.[0]
+    if (!file) return
+
+    try {
+      const arrayBuffer = await file.arrayBuffer()
+      const data = new Uint8Array(arrayBuffer)
+      await importDatabase(data)
+      toast.success('Database imported successfully')
+      await loadStats()
+    } catch (error) {
+      console.error('Failed to import:', error)
+      toast.error('Failed to import database')
+    }
+
+    event.target.value = ''
+  }, [loadStats])
+
+  const handleClear = useCallback(async () => {
+    if (!confirm('Are you sure you want to clear all data? This cannot be undone.')) {
+      return
+    }
+
+    try {
+      await clearDatabase()
+      toast.success('Database cleared and schema recreated successfully')
+      await loadStats()
+      await checkSchemaHealth()
+    } catch (error) {
+      console.error('Failed to clear:', error)
+      toast.error('Failed to clear database')
+    }
+  }, [loadStats, checkSchemaHealth])
+
+  const handleSeed = useCallback(async () => {
+    try {
+      await seedDatabase()
+      toast.success('Sample data added successfully')
+      await loadStats()
+    } catch (error) {
+      console.error('Failed to seed:', error)
+      toast.error('Failed to add sample data')
+    }
+  }, [loadStats])
+
+  const formatBytes = useCallback((bytes: number) => {
+    if (bytes === 0) return '0 Bytes'
+    const k = 1024
+    const sizes = ['Bytes', 'KB', 'MB', 'GB']
+    const i = Math.floor(Math.log(bytes) / Math.log(k))
+    return Math.round(bytes / Math.pow(k, i) * 100) / 100 + ' ' + sizes[i]
+  }, [])
+
+  return {
+    stats,
+    loading,
+    schemaHealth,
+    checkingSchema,
+    loadStats,
+    checkSchemaHealth,
+    handleExport,
+    handleImport,
+    handleClear,
+    handleSeed,
+    formatBytes,
+  }
+}
diff --git a/src/hooks/useSettingsState.ts b/src/hooks/useSettingsState.ts
index 4fd97b7..cf99495 100644
--- a/src/hooks/useSettingsState.ts
+++ b/src/hooks/useSettingsState.ts
@@ -1,260 +1,54 @@
-import { useState, useEffect } from 'react'
-import { toast } from 'sonner'
-import { 
-  getDatabaseStats, 
-  exportDatabase, 
-  importDatabase, 
-  clearDatabase, 
-  seedDatabase, 
-  getAllSnippets, 
-  validateDatabaseSchema 
-} from '@/lib/db'
-import { 
-  saveStorageConfig, 
-  loadStorageConfig, 
-  FlaskStorageAdapter,
-  type StorageBackend 
-} from '@/lib/storage'
+import { useEffect } from 'react'
+import { useDatabaseOperations } from './useDatabaseOperations'
+import { useStorageConfig } from './useStorageConfig'
+import { useStorageMigration } from './useStorageMigration'
 
 export function useSettingsState() {
-  const [stats, setStats] = useState<{
-    snippetCount: number
-    templateCount: number
-    storageType: 'indexeddb' | 'localstorage' | 'none'
-    databaseSize: number
-  } | null>(null)
-  const [loading, setLoading] = useState(true)
-  const [storageBackend, setStorageBackend] = useState<StorageBackend>('indexeddb')
-  const [flaskUrl, setFlaskUrl] = useState('')
-  const [flaskConnectionStatus, setFlaskConnectionStatus] = useState<'unknown' | 'connected' | 'failed'>('unknown')
-  const [testingConnection, setTestingConnection] = useState(false)
-  const [envVarSet, setEnvVarSet] = useState(false)
-  const [schemaHealth, setSchemaHealth] = useState<'unknown' | 'healthy' | 'corrupted'>('unknown')
-  const [checkingSchema, setCheckingSchema] = useState(false)
+  const {
+    stats,
+    loading,
+    schemaHealth,
+    checkingSchema,
+    loadStats,
+    checkSchemaHealth,
+    handleExport,
+    handleImport,
+    handleClear,
+    handleSeed,
+    formatBytes,
+  } = useDatabaseOperations()
 
-  const loadStats = async () => {
-    setLoading(true)
-    try {
-      const data = await getDatabaseStats()
-      setStats(data)
-    } catch (error) {
-      console.error('Failed to load stats:', error)
-      toast.error('Failed to load database statistics')
-    } finally {
-      setLoading(false)
-    }
-  }
+  const {
+    storageBackend,
+    setStorageBackend,
+    flaskUrl,
+    setFlaskUrl,
+    flaskConnectionStatus,
+    setFlaskConnectionStatus,
+    testingConnection,
+    envVarSet,
+    loadConfig,
+    handleTestConnection,
+    handleSaveStorageConfig: saveConfig,
+  } = useStorageConfig()
 
-  const testFlaskConnection = async (url: string) => {
-    setTestingConnection(true)
-    try {
-      const adapter = new FlaskStorageAdapter(url)
-      const connected = await adapter.testConnection()
-      setFlaskConnectionStatus(connected ? 'connected' : 'failed')
-      return connected
-    } catch (error) {
-      console.error('Connection test failed:', error)
-      setFlaskConnectionStatus('failed')
-      return false
-    } finally {
-      setTestingConnection(false)
-    }
-  }
-
-  const checkSchemaHealth = async () => {
-    setCheckingSchema(true)
-    try {
-      const result = await validateDatabaseSchema()
-      setSchemaHealth(result.valid ? 'healthy' : 'corrupted')
-      
-      if (!result.valid) {
-        console.warn('Schema validation failed:', result.issues)
-      }
-    } catch (error) {
-      console.error('Schema check failed:', error)
-      setSchemaHealth('corrupted')
-    } finally {
-      setCheckingSchema(false)
-    }
-  }
+  const {
+    handleMigrateToFlask: migrateToFlask,
+    handleMigrateToIndexedDB,
+  } = useStorageMigration()
 
   useEffect(() => {
     loadStats()
     checkSchemaHealth()
-    const config = loadStorageConfig()
-    
-    const envFlaskUrl = import.meta.env.VITE_FLASK_BACKEND_URL
-    const isEnvSet = Boolean(envFlaskUrl)
-    setEnvVarSet(isEnvSet)
-    
-    setStorageBackend(config.backend)
-    setFlaskUrl(config.flaskUrl || envFlaskUrl || 'http://localhost:5000')
-  }, [])
-
-  const handleExport = async () => {
-    try {
-      const data = await exportDatabase()
-      const blob = new Blob([new Uint8Array(data)], { type: 'application/octet-stream' })
-      const url = URL.createObjectURL(blob)
-      const a = document.createElement('a')
-      a.href = url
-      a.download = `codesnippet-backup-${Date.now()}.db`
-      document.body.appendChild(a)
-      a.click()
-      document.body.removeChild(a)
-      URL.revokeObjectURL(url)
-      toast.success('Database exported successfully')
-    } catch (error) {
-      console.error('Failed to export:', error)
-      toast.error('Failed to export database')
-    }
-  }
-
-  const handleImport = async (event: React.ChangeEvent<HTMLInputElement>) => {
-    const file = event.target.files?.[0]
-    if (!file) return
-
-    try {
-      const arrayBuffer = await file.arrayBuffer()
-      const data = new Uint8Array(arrayBuffer)
-      await importDatabase(data)
-      toast.success('Database imported successfully')
-      await loadStats()
-    } catch (error) {
-      console.error('Failed to import:', error)
-      toast.error('Failed to import database')
-    }
-
-    event.target.value = ''
-  }
-
-  const handleClear = async () => {
-    if (!confirm('Are you sure you want to clear all data? This cannot be undone.')) {
-      return
-    }
-
-    try {
-      await clearDatabase()
-      toast.success('Database cleared and schema recreated successfully')
-      await loadStats()
-      await checkSchemaHealth()
-    } catch (error) {
-      console.error('Failed to clear:', error)
-      toast.error('Failed to clear database')
-    }
-  }
-
-  const handleSeed = async () => {
-    try {
-      await seedDatabase()
-      toast.success('Sample data added successfully')
-      await loadStats()
-    } catch (error) {
-      console.error('Failed to seed:', error)
-      toast.error('Failed to add sample data')
-    }
-  }
-
-  const formatBytes = (bytes: number) => {
-    if (bytes === 0) return '0 Bytes'
-    const k = 1024
-    const sizes = ['Bytes', 'KB', 'MB', 'GB']
-    const i = Math.floor(Math.log(bytes) / Math.log(k))
-    return Math.round(bytes / Math.pow(k, i) * 100) / 100 + ' ' + sizes[i]
-  }
-
-  const handleTestConnection = async () => {
-    await testFlaskConnection(flaskUrl)
-  }
+    loadConfig()
+  }, [loadStats, checkSchemaHealth, loadConfig])
 
   const handleSaveStorageConfig = async () => {
-    if (storageBackend === 'flask') {
-      if (!flaskUrl) {
-        toast.error('Please enter a Flask backend URL')
-        return
-      }
-      
-      const connected = await testFlaskConnection(flaskUrl)
-      if (!connected) {
-        toast.error('Cannot connect to Flask backend. Please check the URL and ensure the server is running.')
-        return
-      }
-    }
-
-    saveStorageConfig({
-      backend: storageBackend,
-      flaskUrl: storageBackend === 'flask' ? flaskUrl : undefined
-    })
-    
-    toast.success('Storage backend updated successfully')
-    await loadStats()
+    await saveConfig(loadStats)
   }
 
   const handleMigrateToFlask = async () => {
-    if (!flaskUrl) {
-      toast.error('Please enter a Flask backend URL')
-      return
-    }
-
-    try {
-      const adapter = new FlaskStorageAdapter(flaskUrl)
-      const connected = await adapter.testConnection()
-      
-      if (!connected) {
-        toast.error('Cannot connect to Flask backend')
-        return
-      }
-
-      const snippets = await getAllSnippets()
-      
-      if (snippets.length === 0) {
-        toast.info('No snippets to migrate')
-        return
-      }
-
-      await adapter.migrateFromIndexedDB(snippets)
-      
-      saveStorageConfig({
-        backend: 'flask',
-        flaskUrl
-      })
-      
-      toast.success(`Successfully migrated ${snippets.length} snippets to Flask backend`)
-      await loadStats()
-    } catch (error) {
-      console.error('Migration failed:', error)
-      toast.error('Failed to migrate data to Flask backend')
-    }
-  }
-
-  const handleMigrateToIndexedDB = async () => {
-    if (!flaskUrl) {
-      toast.error('Please enter a Flask backend URL')
-      return
-    }
-
-    try {
-      const adapter = new FlaskStorageAdapter(flaskUrl)
-      const snippets = await adapter.migrateToIndexedDB()
-      
-      if (snippets.length === 0) {
-        toast.info('No snippets to migrate')
-        return
-      }
-
-      saveStorageConfig({
-        backend: 'indexeddb'
-      })
-      
-      // Full page reload is necessary here to reinitialize the database layer
-      // with the new backend after migration from Flask to IndexedDB
-      window.location.reload()
-      
-      toast.success(`Successfully migrated ${snippets.length} snippets to IndexedDB`)
-    } catch (error) {
-      console.error('Migration failed:', error)
-      toast.error('Failed to migrate data from Flask backend')
-    }
+    await migrateToFlask(flaskUrl, loadStats)
   }
 
   return {
@@ -282,3 +76,4 @@ export function useSettingsState() {
     checkSchemaHealth,
   }
 }
+
diff --git a/src/hooks/useStorageConfig.ts b/src/hooks/useStorageConfig.ts
new file mode 100644
index 0000000..0d66b7d
--- /dev/null
+++ b/src/hooks/useStorageConfig.ts
@@ -0,0 +1,86 @@
+import { useState, useCallback } from 'react'
+import { toast } from 'sonner'
+import { 
+  saveStorageConfig, 
+  loadStorageConfig, 
+  FlaskStorageAdapter,
+  type StorageBackend 
+} from '@/lib/storage'
+
+export function useStorageConfig() {
+  const [storageBackend, setStorageBackend] = useState<StorageBackend>('indexeddb')
+  const [flaskUrl, setFlaskUrl] = useState('')
+  const [flaskConnectionStatus, setFlaskConnectionStatus] = useState<'unknown' | 'connected' | 'failed'>('unknown')
+  const [testingConnection, setTestingConnection] = useState(false)
+  const [envVarSet, setEnvVarSet] = useState(false)
+
+  const testFlaskConnection = useCallback(async (url: string) => {
+    setTestingConnection(true)
+    try {
+      const adapter = new FlaskStorageAdapter(url)
+      const connected = await adapter.testConnection()
+      setFlaskConnectionStatus(connected ? 'connected' : 'failed')
+      return connected
+    } catch (error) {
+      console.error('Connection test failed:', error)
+      setFlaskConnectionStatus('failed')
+      return false
+    } finally {
+      setTestingConnection(false)
+    }
+  }, [])
+
+  const loadConfig = useCallback(() => {
+    const config = loadStorageConfig()
+    const envFlaskUrl = import.meta.env.VITE_FLASK_BACKEND_URL
+    const isEnvSet = Boolean(envFlaskUrl)
+    
+    setEnvVarSet(isEnvSet)
+    setStorageBackend(config.backend)
+    setFlaskUrl(config.flaskUrl || envFlaskUrl || 'http://localhost:5000')
+  }, [])
+
+  const handleTestConnection = useCallback(async () => {
+    await testFlaskConnection(flaskUrl)
+  }, [flaskUrl, testFlaskConnection])
+
+  const handleSaveStorageConfig = useCallback(async (onSuccess?: () => Promise<void>) => {
+    if (storageBackend === 'flask') {
+      if (!flaskUrl) {
+        toast.error('Please enter a Flask backend URL')
+        return
+      }
+      
+      const connected = await testFlaskConnection(flaskUrl)
+      if (!connected) {
+        toast.error('Cannot connect to Flask backend. Please check the URL and ensure the server is running.')
+        return
+      }
+    }
+
+    saveStorageConfig({
+      backend: storageBackend,
+      flaskUrl: storageBackend === 'flask' ? flaskUrl : undefined
+    })
+    
+    toast.success('Storage backend updated successfully')
+    
+    if (onSuccess) {
+      await onSuccess()
+    }
+  }, [storageBackend, flaskUrl, testFlaskConnection])
+
+  return {
+    storageBackend,
+    setStorageBackend,
+    flaskUrl,
+    setFlaskUrl,
+    flaskConnectionStatus,
+    setFlaskConnectionStatus,
+    testingConnection,
+    envVarSet,
+    loadConfig,
+    handleTestConnection,
+    handleSaveStorageConfig,
+  }
+}
diff --git a/src/hooks/useStorageMigration.ts b/src/hooks/useStorageMigration.ts
new file mode 100644
index 0000000..96d1486
--- /dev/null
+++ b/src/hooks/useStorageMigration.ts
@@ -0,0 +1,84 @@
+import { useCallback } from 'react'
+import { toast } from 'sonner'
+import { getAllSnippets } from '@/lib/db'
+import { 
+  saveStorageConfig, 
+  FlaskStorageAdapter
+} from '@/lib/storage'
+
+export function useStorageMigration() {
+  const handleMigrateToFlask = useCallback(async (flaskUrl: string, onSuccess?: () => Promise<void>) => {
+    if (!flaskUrl) {
+      toast.error('Please enter a Flask backend URL')
+      return
+    }
+
+    try {
+      const adapter = new FlaskStorageAdapter(flaskUrl)
+      const connected = await adapter.testConnection()
+      
+      if (!connected) {
+        toast.error('Cannot connect to Flask backend')
+        return
+      }
+
+      const snippets = await getAllSnippets()
+      
+      if (snippets.length === 0) {
+        toast.info('No snippets to migrate')
+        return
+      }
+
+      await adapter.migrateFromIndexedDB(snippets)
+      
+      saveStorageConfig({
+        backend: 'flask',
+        flaskUrl
+      })
+      
+      toast.success(`Successfully migrated ${snippets.length} snippets to Flask backend`)
+      
+      if (onSuccess) {
+        await onSuccess()
+      }
+    } catch (error) {
+      console.error('Migration failed:', error)
+      toast.error('Failed to migrate data to Flask backend')
+    }
+  }, [])
+
+  const handleMigrateToIndexedDB = useCallback(async (flaskUrl: string) => {
+    if (!flaskUrl) {
+      toast.error('Please enter a Flask backend URL')
+      return
+    }
+
+    try {
+      const adapter = new FlaskStorageAdapter(flaskUrl)
+      const snippets = await adapter.migrateToIndexedDB()
+      
+      if (snippets.length === 0) {
+        toast.info('No snippets to migrate')
+        return
+      }
+
+      saveStorageConfig({
+        backend: 'indexeddb'
+      })
+      
+      // Full page reload is necessary here to reinitialize the database layer
+      // with the new backend after migration from Flask to IndexedDB
+      window.location.reload()
+      
+      toast.success(`Successfully migrated ${snippets.length} snippets to IndexedDB`)
+    } catch (error) {
+      console.error('Migration failed:', error)
+      toast.error('Failed to migrate data from Flask backend')
+    }
+  }, [])
+
+  return {
+    handleMigrateToFlask,
+    handleMigrateToIndexedDB,
+  }
+}
diff --git a/src/pages/DemoFeatureCards.tsx b/src/pages/DemoFeatureCards.tsx
new file mode 100644
index 0000000..9b3652e
--- /dev/null
+++ b/src/pages/DemoFeatureCards.tsx
@@ -0,0 +1,34 @@
+import { Card, CardContent, CardHeader, CardTitle } from '@/components/ui/card'
+
+export function DemoFeatureCards() {
+  return (
+    <div className="grid grid-cols-1 md:grid-cols-3 gap-6">
+      <Card className="border-primary/20">
+        <CardHeader>
+          <CardTitle className="text-lg">Real-Time Updates</CardTitle>
+        </CardHeader>
+        <CardContent className="text-sm text-muted-foreground">
+          Watch your React components render instantly as you type. No refresh needed.
+        </CardContent>
+      </Card>
+
+      <Card className="border-accent/20">
+        <CardHeader>
+          <CardTitle className="text-lg">Resizable Panels</CardTitle>
+        </CardHeader>
+        <CardContent className="text-sm text-muted-foreground">
+          Drag the center divider to adjust the editor and preview panel sizes to your preference.
+        </CardContent>
+      </Card>
+
+      <Card className="border-primary/20">
+        <CardHeader>
+          <CardTitle className="text-lg">Multiple View Modes</CardTitle>
+        </CardHeader>
+        <CardContent className="text-sm text-muted-foreground">
+          Switch between code-only, split-screen, or preview-only modes with the toggle buttons.
+        </CardContent>
+      </Card>
+    </div>
+  )
+}
diff --git a/src/pages/DemoPage.tsx b/src/pages/DemoPage.tsx
index 749655e..ce0a9da 100644
--- a/src/pages/DemoPage.tsx
+++ b/src/pages/DemoPage.tsx
@@ -3,117 +3,8 @@ import { motion } from 'framer-motion'
 import { SplitScreenEditor } from '@/components/features/snippet-editor/SplitScreenEditor'
 import { Card, CardContent, CardDescription, CardHeader, CardTitle } from '@/components/ui/card'
 import { Sparkle } from '@phosphor-icons/react'
-
-const DEMO_CODE = `function Counter() {
-  const [count, setCount] = React.useState(0)
-  
-  return (
-    <div style={{ 
-      padding: '2rem', 
-      fontFamily: 'Inter, sans-serif',
-      display: 'flex',
-      flexDirection: 'column',
-      alignItems: 'center',
-      gap: '1.5rem'
-    }}>
-      <h2 style={{ 
-        fontSize: '2rem', 
-        fontWeight: 'bold',
-        background: 'linear-gradient(135deg, #8b5cf6, #06b6d4)',
-        WebkitBackgroundClip: 'text',
-        WebkitTextFillColor: 'transparent',
-        margin: 0
-      }}>
-        Interactive Counter
-      </h2>
-      
-      <div style={{
-        fontSize: '4rem',
-        fontWeight: 'bold',
-        color: '#8b5cf6',
-        padding: '2rem',
-        background: 'rgba(139, 92, 246, 0.1)',
-        borderRadius: '1rem',
-        minWidth: '200px',
-        textAlign: 'center'
-      }}>
-        {count}
-      </div>
-      
-      <div style={{ display: 'flex', gap: '1rem' }}>
-        <button
-          onClick={() => setCount(count - 1)}
-          style={{
-            padding: '0.75rem 2rem',
-            fontSize: '1.125rem',
-            fontWeight: '600',
-            background: '#ef4444',
-            color: 'white',
-            border: 'none',
-            borderRadius: '0.5rem',
-            cursor: 'pointer',
-            transition: 'all 0.2s',
-            boxShadow: '0 4px 6px rgba(0, 0, 0, 0.1)'
-          }}
-          onMouseOver={(e) => e.currentTarget.style.transform = 'scale(1.05)'}
-          onMouseOut={(e) => e.currentTarget.style.transform = 'scale(1)'}
-        >
-          Decrement
-        </button>
-        
-        <button
-          onClick={() => setCount(0)}
-          style={{
-            padding: '0.75rem 2rem',
-            fontSize: '1.125rem',
-            fontWeight: '600',
-            background: '#6b7280',
-            color: 'white',
-            border: 'none',
-            borderRadius: '0.5rem',
-            cursor: 'pointer',
-            transition: 'all 0.2s',
-            boxShadow: '0 4px 6px rgba(0, 0, 0, 0.1)'
-          }}
-          onMouseOver={(e) => e.currentTarget.style.transform = 'scale(1.05)'}
-          onMouseOut={(e) => e.currentTarget.style.transform = 'scale(1)'}
-        >
-          Reset
-        </button>
-        
-        <button
-          onClick={() => setCount(count + 1)}
-          style={{
-            padding: '0.75rem 2rem',
-            fontSize: '1.125rem',
-            fontWeight: '600',
-            background: '#10b981',
-            color: 'white',
-            border: 'none',
-            borderRadius: '0.5rem',
-            cursor: 'pointer',
-            transition: 'all 0.2s',
-            boxShadow: '0 4px 6px rgba(0, 0, 0, 0.1)'
-          }}
-          onMouseOver={(e) => e.currentTarget.style.transform = 'scale(1.05)'}
-          onMouseOut={(e) => e.currentTarget.style.transform = 'scale(1)'}
-        >
-          Increment
-        </button>
-      </div>
-      
-      <p style={{ 
-        marginTop: '1rem',
-        color: '#9ca3af',
-        fontSize: '0.875rem'
-      }}>
-        Try editing the code on the left to see live changes!
-      </p>
-    </div>
-  )
-}
-
-Counter`
+import { DEMO_CODE } from './demo-constants'
+import { DemoFeatureCards } from './DemoFeatureCards'
 
 export function DemoPage() {
   const [code, setCode] = useState(DEMO_CODE)
@@ -158,34 +49,7 @@ export function DemoPage() {
         </CardContent>
       </Card>
 
-      <div className="grid grid-cols-1 md:grid-cols-3 gap-6">
-        <Card className="border-primary/20">
-          <CardHeader>
-            <CardTitle className="text-lg">Real-Time Updates</CardTitle>
-          </CardHeader>
-          <CardContent className="text-sm text-muted-foreground">
-            Watch your React components render instantly as you type. No refresh needed.
-          </CardContent>
-        </Card>
-
-        <Card className="border-accent/20">
-          <CardHeader>
-            <CardTitle className="text-lg">Resizable Panels</CardTitle>
-          </CardHeader>
-          <CardContent className="text-sm text-muted-foreground">
-            Drag the center divider to adjust the editor and preview panel sizes to your preference.
-          </CardContent>
-        </Card>
-
-        <Card className="border-primary/20">
-          <CardHeader>
-            <CardTitle className="text-lg">Multiple View Modes</CardTitle>
-          </CardHeader>
-          <CardContent className="text-sm text-muted-foreground">
-            Switch between code-only, split-screen, or preview-only modes with the toggle buttons.
-          </CardContent>
-        </Card>
-      </div>
+      <DemoFeatureCards />
     </motion.div>
   )
 }
diff --git a/src/pages/demo-constants.ts b/src/pages/demo-constants.ts
new file mode 100644
index 0000000..8abcefe
--- /dev/null
+++ b/src/pages/demo-constants.ts
@@ -0,0 +1,110 @@
+export const DEMO_CODE = `function Counter() {
+  const [count, setCount] = React.useState(0)
+  
+  return (
+    <div style={{ 
+      padding: '2rem', 
+      fontFamily: 'Inter, sans-serif',
+      display: 'flex',
+      flexDirection: 'column',
+      alignItems: 'center',
+      gap: '1.5rem'
+    }}>
+      <h2 style={{ 
+        fontSize: '2rem', 
+        fontWeight: 'bold',
+        background: 'linear-gradient(135deg, #8b5cf6, #06b6d4)',
+        WebkitBackgroundClip: 'text',
+        WebkitTextFillColor: 'transparent',
+        margin: 0
+      }}>
+        Interactive Counter
+      </h2>
+      
+      <div style={{
+        fontSize: '4rem',
+        fontWeight: 'bold',
+        color: '#8b5cf6',
+        padding: '2rem',
+        background: 'rgba(139, 92, 246, 0.1)',
+        borderRadius: '1rem',
+        minWidth: '200px',
+        textAlign: 'center'
+      }}>
+        {count}
+      </div>
+      
+      <div style={{ display: 'flex', gap: '1rem' }}>
+        <button
+          onClick={() => setCount(count - 1)}
+          style={{
+            padding: '0.75rem 2rem',
+            fontSize: '1.125rem',
+            fontWeight: '600',
+            background: '#ef4444',
+            color: 'white',
+            border: 'none',
+            borderRadius: '0.5rem',
+            cursor: 'pointer',
+            transition: 'all 0.2s',
+            boxShadow: '0 4px 6px rgba(0, 0, 0, 0.1)'
+          }}
+          onMouseOver={(e) => e.currentTarget.style.transform = 'scale(1.05)'}
+          onMouseOut={(e) => e.currentTarget.style.transform = 'scale(1)'}
+        >
+          Decrement
+        </button>
+        
+        <button
+          onClick={() => setCount(0)}
+          style={{
+            padding: '0.75rem 2rem',
+            fontSize: '1.125rem',
+            fontWeight: '600',
+            background: '#6b7280',
+            color: 'white',
+            border: 'none',
+            borderRadius: '0.5rem',
+            cursor: 'pointer',
+            transition: 'all 0.2s',
+            boxShadow: '0 4px 6px rgba(0, 0, 0, 0.1)'
+          }}
+          onMouseOver={(e) => e.currentTarget.style.transform = 'scale(1.05)'}
+          onMouseOut={(e) => e.currentTarget.style.transform = 'scale(1)'}
+        >
+          Reset
+        </button>
+        
+        <button
+          onClick={() => setCount(count + 1)}
+          style={{
+            padding: '0.75rem 2rem',
+            fontSize: '1.125rem',
+            fontWeight: '600',
+            background: '#10b981',
+            color: 'white',
+            border: 'none',
+            borderRadius: '0.5rem',
+            cursor: 'pointer',
+            transition: 'all 0.2s',
+            boxShadow: '0 4px 6px rgba(0, 0, 0, 0.1)'
+          }}
+          onMouseOver={(e) => e.currentTarget.style.transform = 'scale(1.05)'}
+          onMouseOut={(e) => e.currentTarget.style.transform = 'scale(1)'}
+        >
+          Increment
+        </button>
+      </div>
+      
+      <p style={{ 
+        marginTop: '1rem',
+        color: '#9ca3af',
+        fontSize: '0.875rem'
+      }}>
+        Try editing the code on the left to see live changes!
+      </p>
+    </div>
+  )
+}
+
+Counter`