diff --git a/memory-bank/progress.md b/memory-bank/progress.md
index cd99523..a5b38cd 100644
--- a/memory-bank/progress.md
+++ b/memory-bank/progress.md
@@ -58,6 +58,8 @@
 - ✅ **Safe file operations**: Atomic file writing with rollback capability
 - ✅ **Manager module**: Complete HostsManager class for edit operations
 - ✅ **Error handling**: Comprehensive error handling with user feedback
+- ✅ **Enhanced read-only error messages**: Clear, informative error messages with ❌ indicator and helpful instructions
+- ✅ **Status bar positioning**: Fixed status bar layout to appear above footer for maximum visibility
 - ✅ **Keyboard shortcuts**: All edit mode shortcuts implemented and tested
 - ✅ **Live testing**: Manual testing confirms all functionality works correctly
 - ✅ **Human-readable formatting**: Tab-based column alignment with proper spacing
@@ -109,7 +111,8 @@
 5. ✅ **Entry reordering**: Move entries up/down with Ctrl+Up/Down keyboard shortcuts
 6. ✅ **Manager module**: Complete HostsManager class for all edit operations
 7. ✅ **Safe file operations**: Atomic file writing with rollback capability
-8. ✅ **Comprehensive testing**: 38 new tests for manager module (135 total tests)
+8. ✅ **Enhanced error messages**: Professional read-only mode error messages with clear instructions
+9. ✅ **Comprehensive testing**: 38 new tests for manager module (135 total tests)
 
 ### Recent Major Accomplishments
 - ✅ **Complete Phase 3 implementation**: Full edit mode foundation with permission management
diff --git a/src/hosts/main.py b/src/hosts/main.py
index c09deb4..4df0d95 100644
--- a/src/hosts/main.py
+++ b/src/hosts/main.py
@@ -28,7 +28,7 @@ class HostsManagerApp(App):
     
     CSS = """
     .hosts-container {
-        height: 100%;
+        height: 1fr;
     }
     
     .left-pane {
@@ -59,6 +59,16 @@ class HostsManagerApp(App):
         color: $text;
         height: 1;
         padding: 0 1;
+        dock: bottom;
+    }
+    
+    .status-error {
+        background: $error;
+        color: $text;
+        height: 1;
+        padding: 0 1;
+        text-style: bold;
+        dock: bottom;
     }
     
     /* DataTable styling to match background */
@@ -115,20 +125,22 @@ class HostsManagerApp(App):
         """Create the application layout."""
         yield Header()
         
-        with Horizontal(classes="hosts-container"):
-            left_pane = Vertical(classes="left-pane")
-            left_pane.border_title = "Hosts Entries"
-            with left_pane:
-                yield DataTable(id="entries-table")
-            yield left_pane
+        with Vertical():
+            with Horizontal(classes="hosts-container"):
+                left_pane = Vertical(classes="left-pane")
+                left_pane.border_title = "Hosts Entries"
+                with left_pane:
+                    yield DataTable(id="entries-table")
+                yield left_pane
+                
+                right_pane = Vertical(classes="right-pane")
+                right_pane.border_title = "Entry Details"
+                with right_pane:
+                    yield Static("", id="entry-details")
+                yield right_pane
             
-            right_pane = Vertical(classes="right-pane")
-            right_pane.border_title = "Entry Details"
-            with right_pane:
-                yield Static("", id="entry-details")
-            yield right_pane
+            yield Static("", classes="status-bar", id="status")
         
-        yield Static("", classes="status-bar", id="status")
         yield Footer()
     
     def on_ready(self) -> None:
@@ -367,8 +379,26 @@ class HostsManagerApp(App):
         status_widget = self.query_one("#status", Static)
         
         if message:
-            status_widget.update(message)
+            # Check if this is an error message (starts with ❌)
+            if message.startswith("❌"):
+                # Use error styling for error messages
+                status_widget.remove_class("status-bar")
+                status_widget.add_class("status-error")
+                status_widget.update(message)
+                # Auto-clear error message after 5 seconds
+                self.set_timer(5.0, lambda: self.update_status())
+            else:
+                # Use normal styling for regular messages
+                status_widget.remove_class("status-error")
+                status_widget.add_class("status-bar")
+                status_widget.update(message)
+                # Auto-clear regular message after 3 seconds
+                self.set_timer(3.0, lambda: self.update_status())
         else:
+            # Reset to normal status display
+            status_widget.remove_class("status-error")
+            status_widget.add_class("status-bar")
+            
             mode = "Edit mode" if self.edit_mode else "Read-only mode"
             entry_count = len(self.hosts_file.entries)
             active_count = len(self.hosts_file.get_active_entries())
@@ -485,7 +515,7 @@ class HostsManagerApp(App):
     def action_toggle_entry(self) -> None:
         """Toggle the active state of the selected entry."""
         if not self.edit_mode:
-            self.update_status("Not in edit mode - press 'Ctrl+E' to enable editing")
+            self.update_status("❌ Cannot toggle entry: Application is in read-only mode. Press 'Ctrl+E' to enable edit mode.")
             return
         
         if not self.hosts_file.entries:
@@ -513,7 +543,7 @@ class HostsManagerApp(App):
     def action_move_entry_up(self) -> None:
         """Move the selected entry up in the list."""
         if not self.edit_mode:
-            self.update_status("Not in edit mode - press 'Ctrl+E' to enable editing")
+            self.update_status("❌ Cannot move entry: Application is in read-only mode. Press 'Ctrl+E' to enable edit mode.")
             return
         
         if not self.hosts_file.entries:
@@ -544,7 +574,7 @@ class HostsManagerApp(App):
     def action_move_entry_down(self) -> None:
         """Move the selected entry down in the list."""
         if not self.edit_mode:
-            self.update_status("Not in edit mode - press 'Ctrl+E' to enable editing")
+            self.update_status("❌ Cannot move entry: Application is in read-only mode. Press 'Ctrl+E' to enable edit mode.")
             return
         
         if not self.hosts_file.entries:
@@ -575,7 +605,7 @@ class HostsManagerApp(App):
     def action_save_file(self) -> None:
         """Save the hosts file to disk."""
         if not self.edit_mode:
-            self.update_status("Not in edit mode - no changes to save")
+            self.update_status("❌ Cannot save: Application is in read-only mode. No changes to save.")
             return
         
         success, message = self.manager.save_hosts_file(self.hosts_file)
diff --git a/tests/test_main.py b/tests/test_main.py
index 90bef97..e0a34fd 100644
--- a/tests/test_main.py
+++ b/tests/test_main.py
@@ -243,14 +243,17 @@ class TestHostsManagerApp:
             
             app = HostsManagerApp()
             
-            # Mock the query_one method
+            # Mock the query_one method and set_timer to avoid event loop issues
             mock_status = Mock()
             app.query_one = Mock(return_value=mock_status)
+            app.set_timer = Mock()  # Mock the timer to avoid event loop issues
             
             app.update_status("Custom status message")
             
             # Verify status was updated with custom message
             mock_status.update.assert_called_once_with("Custom status message")
+            # Verify timer was set for auto-clearing
+            app.set_timer.assert_called_once()
     
     def test_action_reload(self):
         """Test reload action."""