diff --git a/src/components/home/HeroCarousel.tsx b/src/components/home/HeroCarousel.tsx
index ae5a08b..5c2205f 100644
--- a/src/components/home/HeroCarousel.tsx
+++ b/src/components/home/HeroCarousel.tsx
@@ -1,6 +1,6 @@
-import React, { useMemo } from 'react';
+import React, { useMemo, useState } from 'react';
 import { View, Text, StyleSheet, Dimensions, TouchableOpacity, ViewStyle, TextStyle, ImageStyle, FlatList, StyleProp } from 'react-native';
-import Animated, { FadeIn, Easing } from 'react-native-reanimated';
+import Animated, { FadeIn, FadeOut, Easing } from 'react-native-reanimated';
 import { LinearGradient } from 'expo-linear-gradient';
 import { Image as ExpoImage } from 'expo-image';
 import { MaterialIcons } from '@expo/vector-icons';
@@ -9,29 +9,115 @@ import { NavigationProp } from '@react-navigation/native';
 import { RootStackParamList } from '../../navigation/AppNavigator';
 import { StreamingContent } from '../../services/catalogService';
 import { useTheme } from '../../contexts/ThemeContext';
+import { useSafeAreaInsets } from 'react-native-safe-area-context';
 
 interface HeroCarouselProps {
   items: StreamingContent[];
+  loading?: boolean;
 }
 
 const { width } = Dimensions.get('window');
 
-const CARD_WIDTH = Math.min(width * 0.88, 520);
-const CARD_HEIGHT = Math.round(CARD_WIDTH * 9 / 16) + 160; // increased extra space for text/actions
+const CARD_WIDTH = Math.min(width * 0.8, 480);
+const CARD_HEIGHT = Math.round(CARD_WIDTH * 9 / 16) + 270; // further increased space for text/actions
 
-const HeroCarousel: React.FC<HeroCarouselProps> = ({ items }) => {
+const HeroCarousel: React.FC<HeroCarouselProps> = ({ items, loading = false }) => {
   const navigation = useNavigation<NavigationProp<RootStackParamList>>();
   const { currentTheme } = useTheme();
+  const insets = useSafeAreaInsets();
 
   const data = useMemo(() => (items && items.length ? items.slice(0, 10) : []), [items]);
+  const [activeIndex, setActiveIndex] = useState(0);
 
-  if (data.length === 0) {
-    return null;
+  if (loading) {
+    return (
+      <View style={[styles.container, { paddingVertical: 12 }] as StyleProp<ViewStyle>}>
+        <View style={{ height: CARD_HEIGHT }}>
+          <FlatList
+            data={[1, 2, 3] as any}
+            keyExtractor={(i) => String(i)}
+            horizontal
+            showsHorizontalScrollIndicator={false}
+            snapToInterval={CARD_WIDTH + 16}
+            decelerationRate="fast"
+            contentContainerStyle={{ paddingHorizontal: (width - CARD_WIDTH) / 2 }}
+            renderItem={() => (
+              <View style={{ width: CARD_WIDTH + 16 }}>
+                <View style={[styles.card, { backgroundColor: currentTheme.colors.elevation1 }] as StyleProp<ViewStyle>}>
+                  <View style={styles.bannerContainer as ViewStyle}>
+                    <View style={styles.skeletonBannerFull as ViewStyle} />
+                    <LinearGradient
+                      colors={["transparent", "rgba(0,0,0,0.25)"]}
+                      locations={[0.6, 1]}
+                      style={styles.bannerOverlay as ViewStyle}
+                    />
+                  </View>
+                  <View style={styles.info as ViewStyle}>
+                    <View style={[styles.skeletonLine, { width: '62%' }] as StyleProp<ViewStyle>} />
+                    <View style={[styles.skeletonLine, { width: '44%', marginTop: 6 }] as StyleProp<ViewStyle>} />
+                    <View style={styles.skeletonActions as ViewStyle}>
+                      <View style={[styles.skeletonPill, { width: 96 }] as StyleProp<ViewStyle>} />
+                      <View style={[styles.skeletonPill, { width: 80 }] as StyleProp<ViewStyle>} />
+                    </View>
+                  </View>
+                </View>
+              </View>
+            )}
+          />
+        </View>
+      </View>
+    );
   }
 
+  if (data.length === 0) return null;
+
+  const handleMomentumEnd = (event: any) => {
+    const offsetX = event?.nativeEvent?.contentOffset?.x ?? 0;
+    const interval = CARD_WIDTH + 16;
+    const idx = Math.round(offsetX / interval);
+    const clamped = Math.max(0, Math.min(idx, data.length - 1));
+    if (clamped !== activeIndex) setActiveIndex(clamped);
+  };
+
   return (
     <Animated.View entering={FadeIn.duration(350).easing(Easing.out(Easing.cubic))}>
       <View style={styles.container as ViewStyle}>
+        {data[activeIndex] && (
+          <View
+            style={[
+              styles.backgroundContainer,
+              { top: -insets.top },
+            ] as StyleProp<ViewStyle>}
+            pointerEvents="none"
+          >
+            <Animated.View
+              key={data[activeIndex].id}
+              entering={FadeIn.duration(300).easing(Easing.out(Easing.cubic))}
+              exiting={FadeOut.duration(300).easing(Easing.in(Easing.cubic))}
+              style={{ flex: 1 } as ViewStyle}
+            >
+              <ExpoImage
+                source={{ uri: data[activeIndex].banner || data[activeIndex].poster }}
+                style={styles.backgroundImage as ImageStyle}
+                contentFit="cover"
+                blurRadius={36}
+                cachePolicy="memory-disk"
+              />
+              <LinearGradient
+                colors={["rgba(0,0,0,0.65)", "rgba(0,0,0,0.85)"]}
+                locations={[0.4, 1]}
+                style={styles.backgroundOverlay as ViewStyle}
+              />
+            </Animated.View>
+          </View>
+        )}
+        {/* Bottom blend to HomeScreen background (not the card) */}
+        <LinearGradient
+          colors={["transparent", currentTheme.colors.background]}
+          locations={[0, 1]}
+          style={styles.bottomBlend as ViewStyle}
+          pointerEvents="none"
+        />
         <FlatList
           data={data}
           keyExtractor={(item) => item.id}
@@ -40,6 +126,7 @@ const HeroCarousel: React.FC<HeroCarouselProps> = ({ items }) => {
           snapToInterval={CARD_WIDTH + 16}
           decelerationRate="fast"
           contentContainerStyle={{ paddingHorizontal: (width - CARD_WIDTH) / 2 }}
+          onMomentumScrollEnd={handleMomentumEnd}
           renderItem={({ item }) => (
             <View style={{ width: CARD_WIDTH + 16 }}>
               <TouchableOpacity
@@ -56,8 +143,8 @@ const HeroCarousel: React.FC<HeroCarouselProps> = ({ items }) => {
                       cachePolicy="memory-disk"
                     />
                     <LinearGradient
-                      colors={["transparent", "rgba(0,0,0,0.7)"]}
-                      locations={[0.55, 1]}
+                      colors={["transparent", "rgba(0,0,0,0.35)"]}
+                      locations={[0.6, 1]}
                       style={styles.bannerGradient as ViewStyle}
                     />
                   </View>
@@ -103,6 +190,34 @@ const styles = StyleSheet.create({
   container: {
     paddingVertical: 12,
   },
+  backgroundContainer: {
+    position: 'absolute',
+    left: 0,
+    right: 0,
+    top: 0,
+    bottom: 0,
+  },
+  backgroundImage: {
+    position: 'absolute',
+    left: 0,
+    right: 0,
+    top: 0,
+    bottom: 0,
+  },
+  backgroundOverlay: {
+    position: 'absolute',
+    left: 0,
+    right: 0,
+    top: 0,
+    bottom: 0,
+  },
+  bottomBlend: {
+    position: 'absolute',
+    left: 0,
+    right: 0,
+    bottom: 0,
+    height: 160,
+  },
   card: {
     width: CARD_WIDTH,
     height: CARD_HEIGHT,
@@ -114,6 +229,47 @@ const styles = StyleSheet.create({
     shadowOpacity: 0.3,
     shadowRadius: 12,
   },
+  skeletonCard: {
+    width: CARD_WIDTH,
+    height: CARD_HEIGHT,
+    borderRadius: 16,
+    overflow: 'hidden',
+  },
+  skeletonBannerFull: {
+    position: 'absolute',
+    left: 0,
+    right: 0,
+    top: 0,
+    bottom: 0,
+    backgroundColor: 'rgba(255,255,255,0.06)'
+  },
+  bannerOverlay: {
+    position: 'absolute',
+    left: 0,
+    right: 0,
+    top: 0,
+    bottom: 0,
+  },
+  skeletonInfo: {
+    paddingHorizontal: 16,
+    paddingTop: 10,
+  },
+  skeletonLine: {
+    height: 14,
+    borderRadius: 7,
+    backgroundColor: 'rgba(255,255,255,0.08)'
+  },
+  skeletonActions: {
+    flexDirection: 'row',
+    alignItems: 'center',
+    gap: 10,
+    marginTop: 12,
+  },
+  skeletonPill: {
+    height: 36,
+    borderRadius: 18,
+    backgroundColor: 'rgba(255,255,255,0.1)'
+  },
   bannerContainer: {
     position: 'absolute',
     left: 0,
@@ -132,6 +288,7 @@ const styles = StyleSheet.create({
     bottom: 0,
     top: 0,
   },
+  
   info: {
     position: 'absolute',
     left: 0,
diff --git a/src/hooks/useFeaturedContent.ts b/src/hooks/useFeaturedContent.ts
index a3c03ba..092c84b 100644
--- a/src/hooks/useFeaturedContent.ts
+++ b/src/hooks/useFeaturedContent.ts
@@ -312,18 +312,31 @@ export function useFeaturedContent() {
   // Subscribe directly to settings emitter for immediate updates
   useEffect(() => {
     const handleSettingsChange = () => {
-      // Only refresh if current content source is different from settings
-      // This prevents duplicate refreshes when HomeScreen also handles this event
-      if (contentSource !== settings.featuredContentSource) {
-        logger.info('[useFeaturedContent] event:content-source-changed', { from: contentSource, to: settings.featuredContentSource });
-        // Content source will be updated in the next render cycle due to state updates
-        // No need to call loadFeaturedContent here as it will be triggered by contentSource change
-      } else if (
-        contentSource === 'catalogs' && 
-        JSON.stringify(selectedCatalogs) !== JSON.stringify(settings.selectedHeroCatalogs)
-      ) {
-        // Only refresh if using catalogs and selected catalogs changed
-        logger.info('[useFeaturedContent] event:selected-catalogs-changed');
+      // Always reflect settings immediately in this hook
+      const nextSource = settings.featuredContentSource;
+      const nextSelected = settings.selectedHeroCatalogs || [];
+
+      const sourceChanged = contentSource !== nextSource;
+      const catalogsChanged = JSON.stringify(selectedCatalogs) !== JSON.stringify(nextSelected);
+
+      if (sourceChanged || (nextSource === 'catalogs' && catalogsChanged)) {
+        logger.info('[useFeaturedContent] event:settings-changed:immediate-refresh', {
+          fromSource: contentSource,
+          toSource: nextSource,
+          catalogsChanged
+        });
+
+        // Update internal state immediately so dependent effects are in sync
+        setContentSource(nextSource);
+        setSelectedCatalogs(nextSelected);
+
+        // Clear current data to reflect change instantly in UI
+        setAllFeaturedContent([]);
+        setFeaturedContent(null);
+        persistentStore.allFeaturedContent = [];
+        persistentStore.featuredContent = null;
+
+        // Force a fresh load
         loadFeaturedContent(true);
       }
     };
diff --git a/src/screens/HomeScreen.tsx b/src/screens/HomeScreen.tsx
index 14b6635..8354a32 100644
--- a/src/screens/HomeScreen.tsx
+++ b/src/screens/HomeScreen.tsx
@@ -612,6 +612,7 @@ const HomeScreen = () => {
       <HeroCarousel
         key={`carousel-${featuredContentSource}`}
         items={allFeaturedContent || (featuredContent ? [featuredContent] : [])}
+        loading={featuredLoading}
       />
     ) : (
       <FeaturedContent