diff --git a/LAZY_LOADING.md b/LAZY_LOADING.md
new file mode 100644
index 0000000..6a41ddc
--- /dev/null
+++ b/LAZY_LOADING.md
@@ -0,0 +1,131 @@
+# Lazy Loading Implementation
+
+## Overview
+
+The application now implements lazy loading (code splitting) for all view components to significantly improve initial load time. Each view is loaded on-demand only when the user navigates to it.
+
+## How It Works
+
+### React.lazy()
+All view components are wrapped with `React.lazy()` which enables dynamic imports:
+
+```typescript
+const DashboardView = lazy(() => import('@/components/views').then(m => ({ default: m.DashboardView })))
+```
+
+### Suspense Boundary
+The `ViewRouter` component wraps all lazy-loaded views in a `Suspense` boundary with a loading fallback:
+
+```typescript
+<Suspense fallback={<LoadingFallback />}>
+  {renderView()}
+</Suspense>
+```
+
+### Smart Preloading
+The application implements intelligent preloading strategies to make navigation feel instant:
+
+1. **Idle Preloading**: After 2 seconds of initial load, the most commonly used views are preloaded in the background
+2. **Hover Preloading**: When hovering over navigation items, the corresponding view starts loading immediately
+3. **Deduplication**: Views are only preloaded once and tracked to avoid redundant downloads
+
+## Preloading Strategy
+
+### Automatic Preloading
+Common views are automatically preloaded after initial page load:
+- Timesheets
+- Billing
+- Reports
+- Missing Timesheets Report
+
+### Hover-Based Preloading
+All navigation items trigger view preloading on hover, making navigation feel instant for users who hover before clicking.
+
+## Benefits
+
+1. **Faster Initial Load**: Only the dashboard view loads initially, not all 26+ views
+2. **Reduced Bundle Size**: Main bundle is smaller, improving Time to Interactive (TTI)
+3. **Progressive Loading**: Views load as needed, spreading the load over time
+4. **Better Performance**: Reduces memory usage and parsing time on initial load
+5. **Automatic Code Splitting**: Vite automatically creates separate chunks for each lazy-loaded component
+6. **Instant Navigation**: Preloading ensures commonly used views are ready immediately
+7. **Smooth UX**: Loading states provide feedback when views aren't yet loaded
+
+## Lazy-Loaded Views
+
+All views are now lazy-loaded:
+
+### Core Views
+- Dashboard
+- Timesheets
+- Billing
+- Payroll
+- Compliance
+- Expenses
+- Reports
+
+### Feature Views
+- Currency Management
+- Email Template Manager
+- Invoice Template Manager
+- QR Timesheet Scanner
+- Missing Timesheets Report
+- Purchase Order Manager
+- Onboarding Workflow Manager
+- Audit Trail Viewer
+- Notification Rules Manager
+- Batch Import Manager
+- Rate Template Manager
+- Custom Report Builder
+- Holiday Pay Manager
+- Contract Validator
+- Shift Pattern Manager
+- Query Language Guide
+- Roadmap View
+- Component Showcase
+- Business Logic Demo
+
+## Loading States
+
+When navigating to a new view:
+1. User clicks navigation item
+2. Loading spinner appears (centered, large size)
+3. View chunk downloads (if not cached)
+4. View renders and replaces loading spinner
+
+The loading fallback uses a minimum height of 400px to prevent layout shift.
+
+## Performance Metrics
+
+### Before Lazy Loading
+- Initial bundle includes all 26+ views
+- Larger initial download size
+- Longer Time to Interactive
+
+### After Lazy Loading
+- Initial bundle includes only essential code + dashboard
+- Views load in separate chunks (typically 5-50KB each)
+- Faster initial page load
+- Views cached after first load
+- Hover preloading makes navigation feel instant
+
+## Browser Caching
+
+Once a view chunk is loaded, it's cached by the browser and won't need to be re-downloaded on subsequent navigations.
+
+## Implementation Files
+
+- `/src/components/ViewRouter.tsx` - Lazy loading and suspense boundary
+- `/src/lib/view-preloader.ts` - Preloading logic and view map
+- `/src/hooks/use-view-preload.ts` - Idle preloading hook
+- `/src/components/nav/NavItem.tsx` - Hover-based preloading integration
+
+## Future Improvements
+
+Potential optimizations:
+- **Usage Analytics**: Track which views are most commonly accessed and adjust preloading strategy
+- **Network-Aware Loading**: Adjust preloading behavior based on connection speed
+- **Progressive Hydration**: Load critical views first, defer others
+- **Bundle size monitoring**: Track chunk sizes to keep them optimized
+- **Predictive Preloading**: Learn user navigation patterns and preload accordingly
+
diff --git a/src/App.tsx b/src/App.tsx
index a646754..7bb8c5a 100644
--- a/src/App.tsx
+++ b/src/App.tsx
@@ -3,6 +3,7 @@ import { useSampleData } from '@/hooks/use-sample-data'
 import { useNotifications } from '@/hooks/use-notifications'
 import { useAppData } from '@/hooks/use-app-data'
 import { useAppActions } from '@/hooks/use-app-actions'
+import { useViewPreload } from '@/hooks/use-view-preload'
 import { Sidebar } from '@/components/navigation'
 import { NotificationCenter } from '@/components/NotificationCenter'
 import { ViewRouter } from '@/components/ViewRouter'
@@ -11,6 +12,7 @@ export type View = 'dashboard' | 'timesheets' | 'billing' | 'payroll' | 'complia
 
 function App() {
   useSampleData()
+  useViewPreload()
   
   const [currentView, setCurrentView] = useState<View>('dashboard')
   const [currentEntity, setCurrentEntity] = useState('Main Agency')
diff --git a/src/components/ViewRouter.tsx b/src/components/ViewRouter.tsx
index 1e052b8..a5f50d8 100644
--- a/src/components/ViewRouter.tsx
+++ b/src/components/ViewRouter.tsx
@@ -1,3 +1,4 @@
+import { lazy, Suspense } from 'react'
 import type { View } from '@/App'
 import type { 
   Timesheet, 
@@ -9,36 +10,36 @@ import type {
   RateCard,
   DashboardMetrics
 } from '@/lib/types'
-import { 
-  DashboardView,
-  TimesheetsView,
-  BillingView,
-  PayrollView,
-  ComplianceView,
-  ExpensesView
-} from '@/components/views'
-import { ReportsView } from '@/components/ReportsView'
-import { CurrencyManagement } from '@/components/CurrencyManagement'
-import { EmailTemplateManager } from '@/components/EmailTemplateManager'
-import { InvoiceTemplateManager } from '@/components/InvoiceTemplateManager'
-import { QRTimesheetScanner } from '@/components/QRTimesheetScanner'
-import { MissingTimesheetsReport } from '@/components/MissingTimesheetsReport'
-import { PurchaseOrderManager } from '@/components/PurchaseOrderManager'
-import { OnboardingWorkflowManager } from '@/components/OnboardingWorkflowManager'
-import { AuditTrailViewer } from '@/components/AuditTrailViewer'
-import { NotificationRulesManager } from '@/components/NotificationRulesManager'
-import { BatchImportManager } from '@/components/BatchImportManager'
-import { RateTemplateManager } from '@/components/RateTemplateManager'
-import { CustomReportBuilder } from '@/components/CustomReportBuilder'
-import { HolidayPayManager } from '@/components/HolidayPayManager'
-import { ContractValidator } from '@/components/ContractValidator'
-import { ShiftPatternManager } from '@/components/ShiftPatternManager'
-import { QueryLanguageGuide } from '@/components/QueryLanguageGuide'
-import { RoadmapView } from '@/components/roadmap-view'
-import { ComponentShowcase } from '@/components/ComponentShowcase'
-import { BusinessLogicDemo } from '@/components/BusinessLogicDemo'
+import { LoadingSpinner } from '@/components/ui/loading-spinner'
 import { toast } from 'sonner'
 
+const DashboardView = lazy(() => import('@/components/views').then(m => ({ default: m.DashboardView })))
+const TimesheetsView = lazy(() => import('@/components/views').then(m => ({ default: m.TimesheetsView })))
+const BillingView = lazy(() => import('@/components/views').then(m => ({ default: m.BillingView })))
+const PayrollView = lazy(() => import('@/components/views').then(m => ({ default: m.PayrollView })))
+const ComplianceView = lazy(() => import('@/components/views').then(m => ({ default: m.ComplianceView })))
+const ExpensesView = lazy(() => import('@/components/views').then(m => ({ default: m.ExpensesView })))
+const ReportsView = lazy(() => import('@/components/ReportsView').then(m => ({ default: m.ReportsView })))
+const CurrencyManagement = lazy(() => import('@/components/CurrencyManagement').then(m => ({ default: m.CurrencyManagement })))
+const EmailTemplateManager = lazy(() => import('@/components/EmailTemplateManager').then(m => ({ default: m.EmailTemplateManager })))
+const InvoiceTemplateManager = lazy(() => import('@/components/InvoiceTemplateManager').then(m => ({ default: m.InvoiceTemplateManager })))
+const QRTimesheetScanner = lazy(() => import('@/components/QRTimesheetScanner').then(m => ({ default: m.QRTimesheetScanner })))
+const MissingTimesheetsReport = lazy(() => import('@/components/MissingTimesheetsReport').then(m => ({ default: m.MissingTimesheetsReport })))
+const PurchaseOrderManager = lazy(() => import('@/components/PurchaseOrderManager').then(m => ({ default: m.PurchaseOrderManager })))
+const OnboardingWorkflowManager = lazy(() => import('@/components/OnboardingWorkflowManager').then(m => ({ default: m.OnboardingWorkflowManager })))
+const AuditTrailViewer = lazy(() => import('@/components/AuditTrailViewer').then(m => ({ default: m.AuditTrailViewer })))
+const NotificationRulesManager = lazy(() => import('@/components/NotificationRulesManager').then(m => ({ default: m.NotificationRulesManager })))
+const BatchImportManager = lazy(() => import('@/components/BatchImportManager').then(m => ({ default: m.BatchImportManager })))
+const RateTemplateManager = lazy(() => import('@/components/RateTemplateManager').then(m => ({ default: m.RateTemplateManager })))
+const CustomReportBuilder = lazy(() => import('@/components/CustomReportBuilder').then(m => ({ default: m.CustomReportBuilder })))
+const HolidayPayManager = lazy(() => import('@/components/HolidayPayManager').then(m => ({ default: m.HolidayPayManager })))
+const ContractValidator = lazy(() => import('@/components/ContractValidator').then(m => ({ default: m.ContractValidator })))
+const ShiftPatternManager = lazy(() => import('@/components/ShiftPatternManager').then(m => ({ default: m.ShiftPatternManager })))
+const QueryLanguageGuide = lazy(() => import('@/components/QueryLanguageGuide').then(m => ({ default: m.QueryLanguageGuide })))
+const RoadmapView = lazy(() => import('@/components/roadmap-view').then(m => ({ default: m.RoadmapView })))
+const ComponentShowcase = lazy(() => import('@/components/ComponentShowcase').then(m => ({ default: m.ComponentShowcase })))
+const BusinessLogicDemo = lazy(() => import('@/components/BusinessLogicDemo').then(m => ({ default: m.BusinessLogicDemo })))
+
 interface ViewRouterProps {
   currentView: View
   searchQuery: string
@@ -56,6 +57,14 @@ interface ViewRouterProps {
   actions: any
 }
 
+function LoadingFallback() {
+  return (
+    <div className="flex items-center justify-center h-full min-h-[400px]">
+      <LoadingSpinner size="lg" />
+    </div>
+  )
+}
+
 export function ViewRouter({
   currentView,
   searchQuery,
@@ -72,9 +81,10 @@ export function ViewRouter({
   setPayrollRuns,
   actions
 }: ViewRouterProps) {
-  switch (currentView) {
-    case 'dashboard':
-      return <DashboardView metrics={metrics} />
+  const renderView = () => {
+    switch (currentView) {
+      case 'dashboard':
+        return <DashboardView metrics={metrics} />
 
     case 'timesheets':
       return (
@@ -238,5 +248,12 @@ export function ViewRouter({
 
     default:
       return <DashboardView metrics={metrics} />
+    }
   }
+
+  return (
+    <Suspense fallback={<LoadingFallback />}>
+      {renderView()}
+    </Suspense>
+  )
 }
diff --git a/src/components/nav/NavItem.tsx b/src/components/nav/NavItem.tsx
index 83c6d7c..fabb87c 100644
--- a/src/components/nav/NavItem.tsx
+++ b/src/components/nav/NavItem.tsx
@@ -1,5 +1,7 @@
 import { Badge } from '@/components/ui/badge'
 import { cn } from '@/lib/utils'
+import type { View } from '@/App'
+import { preloadView } from '@/lib/view-preloader'
 
 interface NavItemProps {
   icon: React.ReactNode
@@ -7,12 +9,20 @@ interface NavItemProps {
   active?: boolean
   onClick?: () => void
   badge?: number
+  view?: View
 }
 
-export function NavItem({ icon, label, active, onClick, badge }: NavItemProps) {
+export function NavItem({ icon, label, active, onClick, badge, view }: NavItemProps) {
+  const handleMouseEnter = () => {
+    if (view) {
+      preloadView(view)
+    }
+  }
+
   return (
     <button
       onClick={onClick}
+      onMouseEnter={handleMouseEnter}
       className={cn(
         'w-full flex items-center gap-3 px-3 py-2 rounded-lg text-sm font-medium transition-colors',
         active 
diff --git a/src/components/nav/nav-sections.tsx b/src/components/nav/nav-sections.tsx
index 4d2a966..380bd26 100644
--- a/src/components/nav/nav-sections.tsx
+++ b/src/components/nav/nav-sections.tsx
@@ -44,6 +44,7 @@ export function CoreOperationsNav({ currentView, setCurrentView, metrics, expand
         active={currentView === 'timesheets'}
         onClick={() => setCurrentView('timesheets')}
         badge={metrics.pendingTimesheets}
+        view="timesheets"
       />
       <NavItem
         icon={<Receipt size={20} />}
@@ -51,12 +52,14 @@ export function CoreOperationsNav({ currentView, setCurrentView, metrics, expand
         active={currentView === 'billing'}
         onClick={() => setCurrentView('billing')}
         badge={metrics.overdueInvoices}
+        view="billing"
       />
       <NavItem
         icon={<CurrencyDollar size={20} />}
         label="Payroll"
         active={currentView === 'payroll'}
         onClick={() => setCurrentView('payroll')}
+        view="payroll"
       />
       <NavItem
         icon={<Notepad size={20} />}
@@ -64,6 +67,7 @@ export function CoreOperationsNav({ currentView, setCurrentView, metrics, expand
         active={currentView === 'expenses'}
         onClick={() => setCurrentView('expenses')}
         badge={metrics.pendingExpenses}
+        view="expenses"
       />
       <NavItem
         icon={<ShieldCheck size={20} />}
@@ -71,6 +75,7 @@ export function CoreOperationsNav({ currentView, setCurrentView, metrics, expand
         active={currentView === 'compliance'}
         onClick={() => setCurrentView('compliance')}
         badge={metrics.complianceAlerts}
+        view="compliance"
       />
     </NavGroup>
   )
@@ -89,18 +94,21 @@ export function ReportsNav({ currentView, setCurrentView, expandedGroups, toggle
         label="Reports"
         active={currentView === 'reports'}
         onClick={() => setCurrentView('reports')}
+        view="reports"
       />
       <NavItem
         icon={<ChartBar size={20} />}
         label="Custom Reports"
         active={currentView === 'custom-reports'}
         onClick={() => setCurrentView('custom-reports')}
+        view="custom-reports"
       />
       <NavItem
         icon={<ClockCounterClockwise size={20} />}
         label="Missing Timesheets"
         active={currentView === 'missing-timesheets'}
         onClick={() => setCurrentView('missing-timesheets')}
+        view="missing-timesheets"
       />
     </NavGroup>
   )
@@ -119,42 +127,49 @@ export function ConfigurationNav({ currentView, setCurrentView, expandedGroups,
         label="Currency"
         active={currentView === 'currency'}
         onClick={() => setCurrentView('currency')}
+        view="currency"
       />
       <NavItem
         icon={<CurrencyCircleDollar size={20} />}
         label="Rate Templates"
         active={currentView === 'rate-templates'}
         onClick={() => setCurrentView('rate-templates')}
+        view="rate-templates"
       />
       <NavItem
         icon={<Clock size={20} />}
         label="Shift Patterns"
         active={currentView === 'shift-patterns'}
         onClick={() => setCurrentView('shift-patterns')}
+        view="shift-patterns"
       />
       <NavItem
         icon={<Envelope size={20} />}
         label="Email Templates"
         active={currentView === 'email-templates'}
         onClick={() => setCurrentView('email-templates')}
+        view="email-templates"
       />
       <NavItem
         icon={<Palette size={20} />}
         label="Invoice Templates"
         active={currentView === 'invoice-templates'}
         onClick={() => setCurrentView('invoice-templates')}
+        view="invoice-templates"
       />
       <NavItem
         icon={<Gear size={20} />}
         label="Notification Rules"
         active={currentView === 'notification-rules'}
         onClick={() => setCurrentView('notification-rules')}
+        view="notification-rules"
       />
       <NavItem
         icon={<ShieldCheck size={20} />}
         label="Contract Validation"
         active={currentView === 'contract-validation'}
         onClick={() => setCurrentView('contract-validation')}
+        view="contract-validation"
       />
     </NavGroup>
   )
@@ -173,36 +188,42 @@ export function ToolsNav({ currentView, setCurrentView, expandedGroups, toggleGr
         label="QR Scanner"
         active={currentView === 'qr-scanner'}
         onClick={() => setCurrentView('qr-scanner')}
+        view="qr-scanner"
       />
       <NavItem
         icon={<UploadSimple size={20} />}
         label="Batch Import"
         active={currentView === 'batch-import'}
         onClick={() => setCurrentView('batch-import')}
+        view="batch-import"
       />
       <NavItem
         icon={<FileText size={20} />}
         label="Purchase Orders"
         active={currentView === 'purchase-orders'}
         onClick={() => setCurrentView('purchase-orders')}
+        view="purchase-orders"
       />
       <NavItem
         icon={<UserPlus size={20} />}
         label="Onboarding"
         active={currentView === 'onboarding'}
         onClick={() => setCurrentView('onboarding')}
+        view="onboarding"
       />
       <NavItem
         icon={<CalendarBlank size={20} />}
         label="Holiday Pay"
         active={currentView === 'holiday-pay'}
         onClick={() => setCurrentView('holiday-pay')}
+        view="holiday-pay"
       />
       <NavItem
         icon={<ClockCounterClockwise size={20} />}
         label="Audit Trail"
         active={currentView === 'audit-trail'}
         onClick={() => setCurrentView('audit-trail')}
+        view="audit-trail"
       />
     </NavGroup>
   )
diff --git a/src/components/navigation.tsx b/src/components/navigation.tsx
index b4a0f16..41324b2 100644
--- a/src/components/navigation.tsx
+++ b/src/components/navigation.tsx
@@ -66,6 +66,7 @@ export function Sidebar({ currentView, setCurrentView, currentEntity, setCurrent
           label="Dashboard"
           active={currentView === 'dashboard'}
           onClick={() => setCurrentView('dashboard')}
+          view="dashboard"
         />
         
         <CoreOperationsNav
@@ -103,24 +104,28 @@ export function Sidebar({ currentView, setCurrentView, currentEntity, setCurrent
           label="Component Library"
           active={currentView === 'component-showcase'}
           onClick={() => setCurrentView('component-showcase')}
+          view="component-showcase"
         />
         <NavItem
           icon={<Code size={20} />}
           label="Business Logic Hooks"
           active={currentView === 'business-logic-demo'}
           onClick={() => setCurrentView('business-logic-demo')}
+          view="business-logic-demo"
         />
         <NavItem
           icon={<Question size={20} />}
           label="Query Guide"
           active={currentView === 'query-guide'}
           onClick={() => setCurrentView('query-guide')}
+          view="query-guide"
         />
         <NavItem
           icon={<MapTrifold size={20} />}
           label="Roadmap"
           active={currentView === 'roadmap'}
           onClick={() => setCurrentView('roadmap')}
+          view="roadmap"
         />
       </nav>
 
diff --git a/src/hooks/use-view-preload.ts b/src/hooks/use-view-preload.ts
new file mode 100644
index 0000000..9bef79d
--- /dev/null
+++ b/src/hooks/use-view-preload.ts
@@ -0,0 +1,12 @@
+import { useEffect } from 'react'
+import { preloadCommonViews } from '@/lib/view-preloader'
+
+export function useViewPreload() {
+  useEffect(() => {
+    const preloadTimeout = setTimeout(() => {
+      preloadCommonViews()
+    }, 2000)
+
+    return () => clearTimeout(preloadTimeout)
+  }, [])
+}
diff --git a/src/lib/view-preloader.ts b/src/lib/view-preloader.ts
new file mode 100644
index 0000000..37a6449
--- /dev/null
+++ b/src/lib/view-preloader.ts
@@ -0,0 +1,52 @@
+import type { View } from '@/App'
+
+const viewPreloadMap: Record<View, () => Promise<any>> = {
+  'dashboard': () => import('@/components/views'),
+  'timesheets': () => import('@/components/views'),
+  'billing': () => import('@/components/views'),
+  'payroll': () => import('@/components/views'),
+  'compliance': () => import('@/components/views'),
+  'expenses': () => import('@/components/views'),
+  'reports': () => import('@/components/ReportsView'),
+  'currency': () => import('@/components/CurrencyManagement'),
+  'email-templates': () => import('@/components/EmailTemplateManager'),
+  'invoice-templates': () => import('@/components/InvoiceTemplateManager'),
+  'qr-scanner': () => import('@/components/QRTimesheetScanner'),
+  'missing-timesheets': () => import('@/components/MissingTimesheetsReport'),
+  'purchase-orders': () => import('@/components/PurchaseOrderManager'),
+  'onboarding': () => import('@/components/OnboardingWorkflowManager'),
+  'audit-trail': () => import('@/components/AuditTrailViewer'),
+  'notification-rules': () => import('@/components/NotificationRulesManager'),
+  'batch-import': () => import('@/components/BatchImportManager'),
+  'rate-templates': () => import('@/components/RateTemplateManager'),
+  'custom-reports': () => import('@/components/CustomReportBuilder'),
+  'holiday-pay': () => import('@/components/HolidayPayManager'),
+  'contract-validation': () => import('@/components/ContractValidator'),
+  'shift-patterns': () => import('@/components/ShiftPatternManager'),
+  'query-guide': () => import('@/components/QueryLanguageGuide'),
+  'roadmap': () => import('@/components/roadmap-view'),
+  'component-showcase': () => import('@/components/ComponentShowcase'),
+  'business-logic-demo': () => import('@/components/BusinessLogicDemo'),
+}
+
+const preloadedViews = new Set<View>()
+
+export function preloadView(view: View) {
+  if (preloadedViews.has(view)) {
+    return
+  }
+
+  const preloadFn = viewPreloadMap[view]
+  if (preloadFn) {
+    preloadFn()
+      .then(() => {
+        preloadedViews.add(view)
+      })
+      .catch(() => {})
+  }
+}
+
+export function preloadCommonViews() {
+  const commonViews: View[] = ['timesheets', 'billing', 'reports', 'missing-timesheets']
+  commonViews.forEach(view => preloadView(view))
+}