diff --git a/components/layout/ServerSettingsMenu.tsx b/components/layout/ServerSettingsMenu.tsx
index d10acf7..024b615 100644
--- a/components/layout/ServerSettingsMenu.tsx
+++ b/components/layout/ServerSettingsMenu.tsx
@@ -1,57 +1,119 @@
 /**
  * @file components/layout/ServerSettingsMenu.tsx
- * @description Header button triggering the server overview/settings modal.
+ * @description Single settings dropdown menu providing server management actions (Settings, Create Category, Create Channel).
  */
 
 "use client";
 
-import { useState } from "react";
-import { Settings } from "lucide-react";
+import { useState, useRef, useEffect } from "react";
+import { Settings, FolderPlus, PlusCircle, Sliders } from "lucide-react";
 import { EditServerModal } from "@/components/modals/EditServerModal";
+import { CreateCategoryModal } from "@/components/modals/CreateCategoryModal";
+import { CreateChannelModal } from "@/components/modals/CreateChannelModal";
 
-/**
- * Props for the ServerSettingsMenu component.
- *
- * @interface ServerSettingsMenuProps
- * @property {string} serverId - The unique identifier of the server.
- * @property {string} serverName - The display name of the server.
- */
+/** Props for the ServerSettingsMenu component. */
 interface ServerSettingsMenuProps {
   serverId: string;
   serverName: string;
 }
 
-/**
- * Renders a settings button that opens the edit server modal.
- *
- * @param {ServerSettingsMenuProps} props - The component props.
- * @param {string} props.serverId - The unique identifier of the server.
- * @param {string} props.serverName - The display name of the server.
- * @returns {JSX.Element} The rendered server settings trigger and modal component.
- */
+/** Renders a server management dropdown menu with modal triggers for channel, category, and server settings. */
 export function ServerSettingsMenu({
   serverId,
   serverName,
 }: ServerSettingsMenuProps) {
-  const [isModalOpen, setIsModalOpen] = useState(false);
+  const [isMenuOpen, setIsMenuOpen] = useState(false);
+  const [isEditServerOpen, setIsEditServerOpen] = useState(false);
+  const [isCreateCategoryOpen, setIsCreateCategoryOpen] = useState(false);
+  const [isCreateChannelOpen, setIsCreateChannelOpen] = useState(false);
+
+  const menuRef = useRef<HTMLDivElement>(null);
+
+  // Close the menu when clicked outside of it
+  useEffect(() => {
+    function handleClickOutside(event: MouseEvent) {
+      if (menuRef.current && !menuRef.current.contains(event.target as Node)) {
+        setIsMenuOpen(false);
+      }
+    }
+    if (isMenuOpen) {
+      document.addEventListener("mousedown", handleClickOutside);
+    }
+    return () => document.removeEventListener("mousedown", handleClickOutside);
+  }, [isMenuOpen]);
 
   return (
-    <>
+    <div className="relative" ref={menuRef}>
+      {/* Button */}
       <button
         type="button"
-        onClick={() => setIsModalOpen(true)}
-        title="Server Settings"
+        onClick={() => setIsMenuOpen((prev) => !prev)}
+        title="Server-Optionen"
         className="p-1.5 rounded-md text-muted hover:text-white hover:bg-surface transition-colors cursor-pointer"
       >
         <Settings className="w-5 h-5" />
       </button>
 
+      {/* Dropdown Menü */}
+      {isMenuOpen && (
+        <div className="absolute right-0 mt-2 w-52 bg-surface border border-background rounded-lg shadow-lg py-1 z-50 animate-in fade-in zoom-in-95 duration-100">
+          <button
+            type="button"
+            onClick={() => {
+              setIsMenuOpen(false);
+              setIsCreateChannelOpen(true);
+            }}
+            className="w-full flex items-center gap-2 px-3 py-2 text-sm text-muted hover:text-white hover:bg-background transition-colors text-left cursor-pointer"
+          >
+            <PlusCircle className="w-4 h-4" />
+            <span>Kanal erstellen</span>
+          </button>
+
+          <button
+            type="button"
+            onClick={() => {
+              setIsMenuOpen(false);
+              setIsCreateCategoryOpen(true);
+            }}
+            className="w-full flex items-center gap-2 px-3 py-2 text-sm text-muted hover:text-white hover:bg-background transition-colors text-left cursor-pointer"
+          >
+            <FolderPlus className="w-4 h-4" />
+            <span>Kategorie erstellen</span>
+          </button>
+
+          <div className="my-1 border-t border-background" />
+
+          <button
+            type="button"
+            onClick={() => {
+              setIsMenuOpen(false);
+              setIsEditServerOpen(true);
+            }}
+            className="w-full flex items-center gap-2 px-3 py-2 text-sm text-muted hover:text-white hover:bg-background transition-colors text-left cursor-pointer"
+          >
+            <Sliders className="w-4 h-4" />
+            <span>Servereinstellungen</span>
+          </button>
+        </div>
+      )}
+
+      {/* Modals */}
       <EditServerModal
-        isOpen={isModalOpen}
+        isOpen={isEditServerOpen}
         serverId={serverId}
         initialName={serverName}
-        onClose={() => setIsModalOpen(false)}
+        onClose={() => setIsEditServerOpen(false)}
       />
-    </>
+      <CreateCategoryModal
+        isOpen={isCreateCategoryOpen}
+        onClose={() => setIsCreateCategoryOpen(false)}
+        serverId={serverId}
+      />
+      <CreateChannelModal
+        isOpen={isCreateChannelOpen}
+        onClose={() => setIsCreateChannelOpen(false)}
+        serverId={serverId}
+      />
+    </div>
   );
 }
diff --git a/components/sidebar/ChannelSidebar.tsx b/components/sidebar/ChannelSidebar.tsx
index 5a55fbf..190f611 100644
--- a/components/sidebar/ChannelSidebar.tsx
+++ b/components/sidebar/ChannelSidebar.tsx
@@ -14,7 +14,7 @@ import { CreateCategoryModal } from "@/components/modals/CreateCategoryModal";
 import { EditChannelModal } from "@/components/modals/EditChannelModal";
 import { EditCategoryModal } from "@/components/modals/EditCategoryModal";
 import { CategorySection } from "./CategorySection";
-import { FolderPlus, PanelLeftClose } from "lucide-react";
+import { PanelLeftClose } from "lucide-react";
 import type { Category, Channel } from "@/db/schema";
 
 /** Renders the channel sidebar navigation for the active server. */
@@ -55,13 +55,6 @@ export function ChannelSidebar() {
         <div className="h-14 border-b border-background flex items-center justify-between px-4 font-bold text-white shadow-sm shrink-0">
           <span className="truncate">{activeServer.name}</span>
           <div className="flex items-center gap-1">
-            <button
-              type="button"
-              onClick={() => setIsCreateCategoryOpen(true)}
-              className="p-1.5 rounded-md text-muted hover:text-white hover:bg-surface transition-colors cursor-pointer shrink-0"
-            >
-              <FolderPlus className="w-4 h-4" />
-            </button>
             <button
               type="button"
               onClick={toggleNav}