diff --git a/app/rooms/[roomName]/PageClientImpl.tsx b/app/rooms/[roomName]/PageClientImpl.tsx
index 36975d97e..ad93da40f 100644
--- a/app/rooms/[roomName]/PageClientImpl.tsx
+++ b/app/rooms/[roomName]/PageClientImpl.tsx
@@ -25,7 +25,7 @@ import { useRouter } from 'next/navigation';
 import '../../../styles/PageClientImpl.css';
 import { CustomVideoLayoutContextProvider } from '@/app/custom/layout/LayoutContextProvider';
 import CustomVideoLayout from '@/app/custom/layout/CustomVideoLayout';
-import Transcript from '@/lib/Transcript';
+import Transcript, { type AccumulatedSegment } from '@/lib/Transcript';
 
 const CONN_DETAILS_ENDPOINT =
   process.env.NEXT_PUBLIC_CONN_DETAILS_ENDPOINT || '/api/connection-details';
@@ -178,7 +178,8 @@ function VideoConferenceComponent(props: {
   const router = useRouter();
   const handleOnLeave = () => router.push('/');
 
-  const [latestText, setLatestText] = useState('');
+  const [transcriptions, setTranscriptions] = useState<{ [id: string]: AccumulatedSegment }>({});
+  const [transcriptExpanded, setTranscriptExpanded] = useState(false);
   const hideTimer = useRef<ReturnType<typeof setTimeout> | null>(null);
 
   useEffect(() => {
@@ -188,12 +189,26 @@ function VideoConferenceComponent(props: {
       segments: TranscriptionSegment[],
       participant?: Participant,
     ) => {
-      if (segments.length > 0) {
-        const name = participant?.name || participant?.identity || '';
-        const prefix = name ? `${name}: ` : '';
-        setLatestText(`${prefix}${segments[0].text}`);
+      if (segments.length === 0) return;
+      const participantName = participant?.name || participant?.identity || '';
+      setTranscriptions((prev) => {
+        const next = { ...prev };
+        for (const segment of segments) {
+          next[segment.id] = { segment, participantName };
+        }
+        // Prune to the 50 most recent entries to bound memory on long calls
+        const entries = Object.entries(next).sort(
+          ([, a], [, b]) => a.segment.startTime - b.segment.startTime,
+        );
+        return Object.fromEntries(entries.slice(-50));
+      });
+      // Only auto-hide when collapsed -- don't yank the panel away while the user is reviewing expanded history
+      if (!transcriptExpanded) {
         if (hideTimer.current) clearTimeout(hideTimer.current);
-        hideTimer.current = setTimeout(() => setLatestText(''), 4400);
+        hideTimer.current = setTimeout(() => setTranscriptions({}), 4400);
+      } else if (hideTimer.current) {
+        clearTimeout(hideTimer.current);
+        hideTimer.current = null;
       }
     };
 
@@ -202,7 +217,15 @@ function VideoConferenceComponent(props: {
       room.off(RoomEvent.TranscriptionReceived, updateTranscriptions);
       if (hideTimer.current) clearTimeout(hideTimer.current);
     };
-  }, [room]);
+  }, [room, transcriptExpanded]);
+
+  const sortedSegments = useMemo(
+    () =>
+      Object.values(transcriptions).sort(
+        (a, b) => a.segment.startTime - b.segment.startTime,
+      ),
+    [transcriptions],
+  );
 
   if (!isClient) return null;
 
@@ -220,7 +243,11 @@ function VideoConferenceComponent(props: {
         <CustomVideoLayout />
         <RoomAudioRenderer />
       </CustomVideoLayoutContextProvider>
-      <Transcript latestText={latestText} />
+      <Transcript
+        segments={sortedSegments}
+        expanded={transcriptExpanded}
+        onToggle={() => setTranscriptExpanded((prev) => !prev)}
+      />
     </LiveKitRoom>
   );
 }
diff --git a/lib/Transcript.test.ts b/lib/Transcript.test.ts
new file mode 100644
index 000000000..1eba85086
--- /dev/null
+++ b/lib/Transcript.test.ts
@@ -0,0 +1,222 @@
+import { AccumulatedSegment } from './Transcript';
+import { TranscriptionSegment } from 'livekit-client';
+
+// Helper to build a minimal TranscriptionSegment
+function makeSegment(id: string, text: string, startTime: number, final = true): TranscriptionSegment {
+  return { id, text, startTime, endTime: startTime + 1000, language: '', final, firstReceivedTime: startTime, lastReceivedTime: startTime + 500 };
+}
+
+function makeAccSeg(id: string, text: string, startTime: number, participantName = '', final = true): AccumulatedSegment {
+  return { segment: makeSegment(id, text, startTime, final), participantName };
+}
+
+// ---- Reducer logic (mirrors what Transcript.tsx / PageClientImpl render logic does) ----
+
+/** Simulates the pruning logic from updateTranscriptions */
+function applySegments(
+  prev: { [id: string]: AccumulatedSegment },
+  segments: TranscriptionSegment[],
+  participantName: string,
+): { [id: string]: AccumulatedSegment } {
+  const next = { ...prev };
+  for (const segment of segments) {
+    next[segment.id] = { segment, participantName };
+  }
+  const entries = Object.entries(next).sort(
+    ([, a], [, b]) => a.segment.startTime - b.segment.startTime,
+  );
+  return Object.fromEntries(entries.slice(-50));
+}
+
+/** Simulates sortedSegments memo */
+function sortedSegments(dict: { [id: string]: AccumulatedSegment }): AccumulatedSegment[] {
+  return Object.values(dict).sort((a, b) => a.segment.startTime - b.segment.startTime);
+}
+
+// ---- Tests ----
+
+describe('AccumulatedSegment type and reducer logic', () => {
+  describe('applySegments (mirrors updateTranscriptions body)', () => {
+    it('accumulates segments by id', () => {
+      let state: { [id: string]: AccumulatedSegment } = {};
+      state = applySegments(state, [makeSegment('a', 'hello', 100), makeSegment('b', 'world', 200)], 'Alice');
+      expect(Object.keys(state)).toHaveLength(2);
+      expect(state['a'].segment.text).toBe('hello');
+      expect(state['b'].participantName).toBe('Alice');
+    });
+
+    it('upserts non-final segment by same id without duplicating', () => {
+      let state: { [id: string]: AccumulatedSegment } = {};
+      // First arrival: non-final
+      state = applySegments(state, [makeSegment('seg1', 'hel', 100, false)], 'Bob');
+      expect(Object.keys(state)).toHaveLength(1);
+      expect(state['seg1'].segment.text).toBe('hel');
+
+      // Second arrival: final version of same id
+      state = applySegments(state, [makeSegment('seg1', 'hello', 100, true)], 'Bob');
+      expect(Object.keys(state)).toHaveLength(1);
+      expect(state['seg1'].segment.text).toBe('hello');
+      expect(state['seg1'].segment.final).toBe(true);
+    });
+
+    it('prunes to 50 most recent entries', () => {
+      let state: { [id: string]: AccumulatedSegment } = {};
+      // Insert 60 segments
+      const segments = Array.from({ length: 60 }, (_, i) =>
+        makeSegment(`id${i}`, `text${i}`, i * 100),
+      );
+      state = applySegments(state, segments, 'Charlie');
+      expect(Object.keys(state)).toHaveLength(50);
+
+      // The retained entries should be the 50 most recent (ids 10–59 by startTime ordering)
+      const sorted = sortedSegments(state);
+      expect(sorted[0].segment.id).toBe('id10');
+      expect(sorted[49].segment.id).toBe('id59');
+    });
+
+    it('handles empty segments array without mutating state', () => {
+      const initial: { [id: string]: AccumulatedSegment } = {
+        x: makeAccSeg('x', 'existing', 100),
+      };
+      // Simulate the early-return guard: segments.length === 0 means we never call applySegments
+      // so state remains unchanged; test that by not calling and verifying initial state
+      expect(Object.keys(initial)).toHaveLength(1);
+    });
+  });
+
+  describe('sortedSegments memo', () => {
+    it('returns segments sorted ascending by startTime', () => {
+      const dict: { [id: string]: AccumulatedSegment } = {
+        c: makeAccSeg('c', 'third', 300),
+        a: makeAccSeg('a', 'first', 100),
+        b: makeAccSeg('b', 'second', 200),
+      };
+      const sorted = sortedSegments(dict);
+      expect(sorted.map((s) => s.segment.id)).toEqual(['a', 'b', 'c']);
+    });
+  });
+
+  describe('collapsed view slice', () => {
+    it('shows last 3 segments when more than 3 exist', () => {
+      const segs: AccumulatedSegment[] = [
+        makeAccSeg('a', 'one', 100),
+        makeAccSeg('b', 'two', 200),
+        makeAccSeg('c', 'three', 300),
+        makeAccSeg('d', 'four', 400),
+        makeAccSeg('e', 'five', 500),
+      ];
+      const visible = segs.slice(-3);
+      expect(visible).toHaveLength(3);
+      expect(visible[0].segment.id).toBe('c');
+      expect(visible[2].segment.id).toBe('e');
+    });
+
+    it('shows all segments when fewer than 3 exist', () => {
+      const segs: AccumulatedSegment[] = [makeAccSeg('a', 'one', 100)];
+      const visible = segs.slice(-3);
+      expect(visible).toHaveLength(1);
+    });
+  });
+
+  describe('expanded view reversal', () => {
+    it('reverses segments so most recent is first', () => {
+      const segs: AccumulatedSegment[] = [
+        makeAccSeg('a', 'first', 100),
+        makeAccSeg('b', 'second', 200),
+        makeAccSeg('c', 'third', 300),
+      ];
+      const reversed = [...segs].reverse();
+      expect(reversed[0].segment.id).toBe('c');
+      expect(reversed[2].segment.id).toBe('a');
+    });
+  });
+
+  describe('speaker attribution', () => {
+    it('renders prefix when participantName is present', () => {
+      const seg = makeAccSeg('a', 'hello', 100, 'Alice');
+      const line = seg.participantName ? `${seg.participantName}: ${seg.segment.text}` : seg.segment.text;
+      expect(line).toBe('Alice: hello');
+    });
+
+    it('renders plain text when participantName is absent', () => {
+      const seg = makeAccSeg('a', 'hello', 100, '');
+      const line = seg.participantName ? `${seg.participantName}: ${seg.segment.text}` : seg.segment.text;
+      expect(line).toBe('hello');
+    });
+  });
+
+  describe('auto-hide timer logic (collapsed vs expanded)', () => {
+    beforeEach(() => {
+      jest.useFakeTimers();
+    });
+
+    afterEach(() => {
+      jest.useRealTimers();
+    });
+
+    it('schedules clearTranscriptions after 4400ms when collapsed', () => {
+      const setTranscriptions = jest.fn();
+      const hideTimer = { current: null as ReturnType<typeof setTimeout> | null };
+      const transcriptExpanded = false;
+
+      // Simulate the collapsed branch of updateTranscriptions
+      if (!transcriptExpanded) {
+        if (hideTimer.current) clearTimeout(hideTimer.current);
+        hideTimer.current = setTimeout(() => setTranscriptions({}), 4400);
+      }
+
+      expect(setTranscriptions).not.toHaveBeenCalled();
+      jest.advanceTimersByTime(4400);
+      expect(setTranscriptions).toHaveBeenCalledWith({});
+    });
+
+    it('does NOT fire hide timer when expanded', () => {
+      const setTranscriptions = jest.fn();
+      const hideTimer = { current: setTimeout(() => {}, 9999) };
+      const transcriptExpanded = true;
+
+      // Simulate the expanded branch
+      if (!transcriptExpanded) {
+        if (hideTimer.current) clearTimeout(hideTimer.current);
+        hideTimer.current = setTimeout(() => setTranscriptions({}), 4400);
+      } else if (hideTimer.current) {
+        clearTimeout(hideTimer.current);
+        hideTimer.current = null;
+      }
+
+      jest.advanceTimersByTime(10000);
+      expect(setTranscriptions).not.toHaveBeenCalled();
+      expect(hideTimer.current).toBeNull();
+    });
+
+    it('resets existing timer when a new segment arrives while collapsed', () => {
+      const setTranscriptions = jest.fn();
+      const hideTimer = { current: null as ReturnType<typeof setTimeout> | null };
+      const transcriptExpanded = false;
+
+      // First event at t=0
+      if (!transcriptExpanded) {
+        if (hideTimer.current) clearTimeout(hideTimer.current);
+        hideTimer.current = setTimeout(() => setTranscriptions('first-call'), 4400);
+      }
+
+      // Advance 3000ms — timer should NOT have fired yet
+      jest.advanceTimersByTime(3000);
+      expect(setTranscriptions).not.toHaveBeenCalled();
+
+      // Second event resets the timer
+      if (!transcriptExpanded) {
+        if (hideTimer.current) clearTimeout(hideTimer.current);
+        hideTimer.current = setTimeout(() => setTranscriptions({}), 4400);
+      }
+
+      // Advance another 3000ms — still within the new 4400ms window
+      jest.advanceTimersByTime(3000);
+      expect(setTranscriptions).not.toHaveBeenCalled();
+
+      // Advance the remaining 1400ms — now it should fire
+      jest.advanceTimersByTime(1400);
+      expect(setTranscriptions).toHaveBeenCalledWith({});
+    });
+  });
+});
diff --git a/lib/Transcript.tsx b/lib/Transcript.tsx
index ed69ea4d7..0194213bf 100644
--- a/lib/Transcript.tsx
+++ b/lib/Transcript.tsx
@@ -1,9 +1,51 @@
+import { useEffect, useRef } from 'react';
+import { TranscriptionSegment } from 'livekit-client';
 import styles from '../styles/Transcript.module.css';
 
-export default function Transcript(props: { latestText: string }) {
+export type AccumulatedSegment = {
+  segment: TranscriptionSegment;
+  participantName: string;
+};
+
+export default function Transcript(props: {
+  segments: AccumulatedSegment[];
+  expanded: boolean;
+  onToggle: () => void;
+}) {
+  const containerRef = useRef<HTMLDivElement>(null);
+
+  useEffect(() => {
+    if (!props.expanded) return;
+
+    const handleMouseDown = (e: MouseEvent) => {
+      if (containerRef.current && !containerRef.current.contains(e.target as Node)) {
+        props.onToggle();
+      }
+    };
+
+    document.addEventListener('mousedown', handleMouseDown);
+    return () => {
+      document.removeEventListener('mousedown', handleMouseDown);
+    };
+  }, [props.expanded, props.onToggle]);
+
+  const visible = props.expanded
+    ? [...props.segments].reverse()
+    : props.segments.slice(-3);
+
   return (
-    <div className={styles.wrap}>
-      <p className={styles.text}>{props.latestText}</p>
+    <div
+      ref={containerRef}
+      className={`${styles.wrap} ${props.expanded ? styles.expanded : ''}`}
+      onClick={props.onToggle}
+      role="button"
+      aria-expanded={props.expanded}
+    >
+      {visible.map(({ segment, participantName }) => (
+        <p key={segment.id} className={styles.text}>
+          {participantName ? `${participantName}: ${segment.text}` : segment.text}
+        </p>
+      ))}
     </div>
   );
 }
diff --git a/styles/Transcript.module.css b/styles/Transcript.module.css
index 7383eaca4..c3cbb6680 100644
--- a/styles/Transcript.module.css
+++ b/styles/Transcript.module.css
@@ -4,11 +4,23 @@
   width: 100%;
   left: 0;
   right: 0;
+  max-height: 120px;
+  overflow: hidden;
+  cursor: pointer;
+  transition: max-height 0.2s ease;
+}
+
+.expanded {
+  max-height: 60vh;
+  overflow-y: auto;
+  background: rgba(0, 0, 0, 0.6);
+  border-radius: 8px;
+  padding: 8px 0;
 }
 
 .text {
   color: white;
   text-align: center;
-  margin: 16px;
+  margin: 4px 16px;
   font-size: 0.9em;
 }