diff --git a/src/components/Settings/RelaySettings.tsx b/src/components/Settings/RelaySettings.tsx
index c20f181c..765f5861 100644
--- a/src/components/Settings/RelaySettings.tsx
+++ b/src/components/Settings/RelaySettings.tsx
@@ -11,9 +11,6 @@ interface RelaySettingsProps {
 }
 
 const RelaySettings: React.FC<RelaySettingsProps> = ({ relayStatuses }) => {
-  const activeRelays = relayStatuses.filter(r => r.isInPool)
-  const recentRelays = relayStatuses.filter(r => !r.isInPool)
-
   const formatRelayUrl = (url: string) => {
     return url.replace(/^wss?:\/\//, '').replace(/\/$/, '')
   }
@@ -26,150 +23,109 @@ const RelaySettings: React.FC<RelaySettingsProps> = ({ relayStatuses }) => {
     }
   }
 
+  // Sort relays: local relays first, then by connection status, then by URL
+  const sortedRelays = [...relayStatuses].sort((a, b) => {
+    const aIsLocal = isLocalRelay(a.url)
+    const bIsLocal = isLocalRelay(b.url)
+    
+    // Local relays always first
+    if (aIsLocal && !bIsLocal) return -1
+    if (!aIsLocal && bIsLocal) return 1
+    
+    // Within local or remote groups, connected before disconnected
+    if (a.isInPool !== b.isInPool) return a.isInPool ? -1 : 1
+    
+    // Finally sort by URL
+    return a.url.localeCompare(b.url)
+  })
+
+  const getRelayIcon = (relay: RelayStatus) => {
+    const isLocal = isLocalRelay(relay.url)
+    const isConnected = relay.isInPool
+    
+    if (isLocal) {
+      return {
+        icon: faPlane,
+        color: isConnected ? '#22c55e' : '#ef4444',
+        size: '1rem'
+      }
+    } else {
+      if (isConnected) {
+        return {
+          icon: faCheckCircle,
+          color: '#22c55e',
+          size: '1rem'
+        }
+      } else {
+        return {
+          icon: faCircle,
+          color: '#ef4444',
+          size: '0.7rem'
+        }
+      }
+    }
+  }
+
   return (
     <div className="settings-section">
       <h3>Relays</h3>
 
-      {activeRelays.length > 0 && (
-        <div className="relay-group" style={{ marginBottom: '1.5rem' }}>
-          <div className="relay-list">
-            {activeRelays.map((relay) => (
-              <div 
-                key={relay.url} 
-                className="relay-item"
-                style={{
-                  display: 'flex',
-                  alignItems: 'center',
-                  gap: '0.75rem',
-                  padding: '0.75rem',
-                  background: 'var(--surface-secondary)',
-                  borderRadius: '6px',
-                  marginBottom: '0.5rem'
-                }}
-              >
-                <FontAwesomeIcon 
-                  icon={faCheckCircle} 
-                  style={{ 
-                    color: 'var(--success, #22c55e)',
-                    fontSize: '1rem'
-                  }} 
-                />
-                <div style={{ flex: 1, minWidth: 0 }}>
-                  <div style={{ 
-                    fontSize: '0.9rem',
-                    fontFamily: 'var(--font-mono, monospace)',
-                    whiteSpace: 'nowrap',
-                    overflow: 'hidden',
-                    textOverflow: 'ellipsis',
-                    display: 'flex',
-                    alignItems: 'center',
-                    gap: '0.5rem'
-                  }}>
-                    {formatRelayUrl(relay.url)}
-                    {isLocalRelay(relay.url) && (
-                      <span 
-                        title="Local relay"
-                        style={{
-                          display: 'inline-flex',
-                          alignItems: 'center',
-                          padding: '0.15rem 0.4rem',
-                          background: 'rgba(245, 158, 11, 0.15)',
-                          borderRadius: '4px',
-                          color: '#f59e0b',
-                          fontSize: '0.75rem',
-                          flexShrink: 0
-                        }}
-                      >
-                        <FontAwesomeIcon icon={faPlane} />
-                      </span>
-                    )}
-                  </div>
-                </div>
-              </div>
-            ))}
-          </div>
-        </div>
-      )}
-
-      {recentRelays.length > 0 && (
+      {sortedRelays.length > 0 && (
         <div className="relay-group">
-          <h4 style={{ 
-            fontSize: '0.85rem', 
-            fontWeight: 600, 
-            color: '#ef4444',
-            marginBottom: '0.75rem',
-            textTransform: 'uppercase',
-            letterSpacing: '0.05em'
-          }}>
-            Offline
-          </h4>
           <div className="relay-list">
-            {recentRelays.map((relay) => (
-              <div 
-                key={relay.url} 
-                className="relay-item"
-                style={{
-                  display: 'flex',
-                  alignItems: 'center',
-                  gap: '0.75rem',
-                  padding: '0.75rem',
-                  background: 'var(--surface-secondary)',
-                  borderRadius: '6px',
-                  marginBottom: '0.5rem',
-                  opacity: 0.7
-                }}
-              >
-                <FontAwesomeIcon 
-                  icon={faCircle} 
-                  style={{ 
-                    color: '#ef4444',
-                    fontSize: '0.7rem'
-                  }} 
-                />
-                <div style={{ flex: 1, minWidth: 0 }}>
-                  <div style={{ 
-                    fontSize: '0.9rem',
-                    fontFamily: 'var(--font-mono, monospace)',
-                    whiteSpace: 'nowrap',
-                    overflow: 'hidden',
-                    textOverflow: 'ellipsis',
+            {sortedRelays.map((relay) => {
+              const iconConfig = getRelayIcon(relay)
+              const isDisconnected = !relay.isInPool
+              
+              return (
+                <div 
+                  key={relay.url} 
+                  className="relay-item"
+                  style={{
                     display: 'flex',
                     alignItems: 'center',
-                    gap: '0.5rem'
-                  }}>
-                    {formatRelayUrl(relay.url)}
-                    {isLocalRelay(relay.url) && (
-                      <span 
-                        title="Local relay"
-                        style={{
-                          display: 'inline-flex',
-                          alignItems: 'center',
-                          padding: '0.15rem 0.4rem',
-                          background: 'rgba(245, 158, 11, 0.15)',
-                          borderRadius: '4px',
-                          color: '#f59e0b',
-                          fontSize: '0.75rem',
-                          flexShrink: 0
-                        }}
-                      >
-                        <FontAwesomeIcon icon={faPlane} />
-                      </span>
-                    )}
+                    gap: '0.75rem',
+                    padding: '0.75rem',
+                    background: 'var(--surface-secondary)',
+                    borderRadius: '6px',
+                    marginBottom: '0.5rem',
+                    opacity: isDisconnected ? 0.7 : 1
+                  }}
+                >
+                  <FontAwesomeIcon 
+                    icon={iconConfig.icon} 
+                    style={{ 
+                      color: iconConfig.color,
+                      fontSize: iconConfig.size
+                    }} 
+                  />
+                  <div style={{ flex: 1, minWidth: 0 }}>
+                    <div style={{ 
+                      fontSize: '0.9rem',
+                      fontFamily: 'var(--font-mono, monospace)',
+                      whiteSpace: 'nowrap',
+                      overflow: 'hidden',
+                      textOverflow: 'ellipsis'
+                    }}>
+                      {formatRelayUrl(relay.url)}
+                    </div>
                   </div>
+                  {isDisconnected && (
+                    <div style={{
+                      display: 'flex',
+                      alignItems: 'center',
+                      gap: '0.5rem',
+                      fontSize: '0.8rem',
+                      color: 'var(--text-tertiary)',
+                      whiteSpace: 'nowrap'
+                    }}>
+                      <FontAwesomeIcon icon={faClock} />
+                      {formatLastSeen(relay.lastSeen)}
+                    </div>
+                  )}
                 </div>
-                <div style={{
-                  display: 'flex',
-                  alignItems: 'center',
-                  gap: '0.5rem',
-                  fontSize: '0.8rem',
-                  color: 'var(--text-tertiary)',
-                  whiteSpace: 'nowrap'
-                }}>
-                  <FontAwesomeIcon icon={faClock} />
-                  {formatLastSeen(relay.lastSeen)}
-                </div>
-              </div>
-            ))}
+              )
+            })}
           </div>
         </div>
       )}