diff --git a/scarf/scarf/Features/Chat/ChatDensitySettings.swift b/scarf/scarf/Features/Chat/ChatDensitySettings.swift
new file mode 100644
index 0000000..8e54dd2
--- /dev/null
+++ b/scarf/scarf/Features/Chat/ChatDensitySettings.swift
@@ -0,0 +1,102 @@
+import SwiftUI
+
+/// Scarf-local chat rendering preferences (issues #47 / #48).
+///
+/// **Scope vs. Hermes config.** These three keys control how Scarf
+/// *renders* the chat transcript on screen — they do not affect what
+/// Hermes emits over ACP. The companion Hermes flags (`display.compact`,
+/// `showReasoning`, `showCost`) live on the Settings → Display tab's
+/// "Output" section and gate emission. Two separate concerns; both can
+/// be on at once.
+///
+/// **Defaults match today's UI exactly.** Existing users see no change
+/// until they opt in via Settings → Display → Chat density.
+enum ChatDensityKeys {
+    static let toolCardStyle  = "scarf.chat.toolCardStyle"
+    static let reasoningStyle = "scarf.chat.reasoningStyle"
+    static let fontScale      = "scarf.chat.fontScale"
+}
+
+/// How `RichMessageBubble` renders the per-call tool widgets.
+enum ToolCardStyle: String, CaseIterable, Identifiable {
+    /// Today's behavior: full expandable card per call with arguments
+    /// preview and inline result.
+    case full
+    /// Single-line chip per call (icon + name + status dot). Tap opens
+    /// the right-pane inspector with the same details the inline expand
+    /// shows. Saves significant vertical space when the assistant
+    /// chains many tool calls.
+    case compact
+    /// No per-call rows. The `MessageGroupView.toolSummary` pill stays
+    /// visible (showing aggregate counts) and is tappable — clicking it
+    /// opens the inspector on the first call so per-call telemetry
+    /// (duration, exit code) remains reachable.
+    case hidden
+
+    var id: String { rawValue }
+
+    var displayName: String {
+        switch self {
+        case .full:    return "Full card"
+        case .compact: return "Compact chip"
+        case .hidden:  return "Hidden"
+        }
+    }
+}
+
+/// How `RichMessageBubble` renders the assistant's reasoning channel.
+enum ReasoningStyle: String, CaseIterable, Identifiable {
+    /// Today's behavior: yellow tinted DisclosureGroup with a brain
+    /// icon, "REASONING" label, and reasoning-token chip in the label.
+    case disclosure
+    /// Italic foregroundFaint caption inline above the reply, with a
+    /// 9pt brain prefix. No box, no border, no toggle — just the text.
+    /// Reasoning token count moves into the bubble's metadataFooter
+    /// (`· N reasoning tok`) so it isn't lost.
+    case inline
+    /// Reasoning is not rendered. Token count still appears in the
+    /// metadataFooter so user retains visibility into reasoning cost.
+    case hidden
+
+    var id: String { rawValue }
+
+    var displayName: String {
+        switch self {
+        case .disclosure: return "Disclosure box"
+        case .inline:     return "Inline (italic)"
+        case .hidden:     return "Hidden"
+        }
+    }
+}
+
+/// Convenience helpers for translating the user's chat font scale into
+/// SwiftUI's `DynamicTypeSize`. Applied once at the `RichChatView` root
+/// so all of message list / input bar / session info bar scale together.
+enum ChatFontScale {
+    static let min: Double  = 0.85
+    static let max: Double  = 1.30
+    static let step: Double = 0.05
+    static let `default`: Double = 1.0
+
+    /// Map the slider value to the closest `DynamicTypeSize`. We avoid
+    /// the accessibility sizes deliberately — the Mac chat layout has
+    /// fixed-width side panes and accessibility-XXL would push tool
+    /// chips into truncation. Users who need larger text should also
+    /// resize the window.
+    static func dynamicTypeSize(for scale: Double) -> DynamicTypeSize {
+        switch scale {
+        case ..<0.92:  return .xSmall
+        case ..<1.00:  return .small
+        case ..<1.08:  return .medium
+        case ..<1.18:  return .large
+        case ..<1.25:  return .xLarge
+        default:       return .xxLarge
+        }
+    }
+
+    /// Display percentage for the slider's value chip.
+    static func percentLabel(for scale: Double) -> String {
+        let pct = Int((scale * 100).rounded())
+        return "\(pct)%"
+    }
+}
diff --git a/scarf/scarf/Features/Chat/Views/RichChatMessageList.swift b/scarf/scarf/Features/Chat/Views/RichChatMessageList.swift
index 1f3e269..a4a21e6 100644
--- a/scarf/scarf/Features/Chat/Views/RichChatMessageList.swift
+++ b/scarf/scarf/Features/Chat/Views/RichChatMessageList.swift
@@ -145,6 +145,16 @@ struct MessageGroupView: View, Equatable {
     /// that haven't been updated yet still compile.
     var turnDurations: [Int: TimeInterval] = [:]
 
+    @Environment(ChatViewModel.self) private var chatViewModel
+    /// Read here so the toolSummary pill knows whether to render as
+    /// always-visible (today's behavior) or as a tappable inspector
+    /// shortcut when per-call tool cards are hidden (issue #47).
+    @AppStorage(ChatDensityKeys.toolCardStyle)
+    private var toolCardStyleRaw: String = ToolCardStyle.full.rawValue
+    private var toolCardStyle: ToolCardStyle {
+        ToolCardStyle(rawValue: toolCardStyleRaw) ?? .full
+    }
+
     /// Equatable short-circuit for SwiftUI: when the trailing group's
     /// streaming bubble grows, only that group's `==` returns false.
     /// All earlier groups skip body re-evaluation, dropping per-chunk
@@ -207,7 +217,16 @@ struct MessageGroupView: View, Equatable {
                 .equatable()
             }
 
-            if group.toolCallCount > 1 {
+            // When per-call tool cards are visible, the summary pill
+            // is informational only. When tool cards are hidden
+            // (issue #47), this pill becomes the only chrome surfacing
+            // tool activity AND the only path back into the inspector
+            // pane — render it on every group with calls (not just >1)
+            // and make it tappable to focus the first call.
+            let showSummary = (toolCardStyle == .hidden)
+                ? group.toolCallCount > 0
+                : group.toolCallCount > 1
+            if showSummary {
                 toolSummary
             }
         }
@@ -217,18 +236,44 @@ struct MessageGroupView: View, Equatable {
     private var toolSummary: some View {
         let kinds = group.toolKindCounts
         if !kinds.isEmpty {
-            HStack(spacing: 4) {
-                Image(systemName: "wrench")
-                    .font(.caption2)
-                Text(summaryText(kinds))
-                    .font(.caption2)
+            let firstCallId = group.assistantMessages
+                .flatMap(\.toolCalls)
+                .first?.callId
+            let isInteractive = (toolCardStyle == .hidden) && firstCallId != nil
+            Group {
+                if isInteractive, let firstCallId {
+                    Button {
+                        chatViewModel.focusedToolCallId = firstCallId
+                    } label: {
+                        toolSummaryPill(kinds, interactive: true)
+                    }
+                    .buttonStyle(.plain)
+                    .help("Click to inspect tool calls")
+                } else {
+                    toolSummaryPill(kinds, interactive: false)
+                }
             }
-            .foregroundStyle(.tertiary)
             .frame(maxWidth: .infinity, alignment: .center)
             .padding(.vertical, 2)
         }
     }
 
+    @ViewBuilder
+    private func toolSummaryPill(_ kinds: [ToolKind: Int], interactive: Bool) -> some View {
+        HStack(spacing: 4) {
+            Image(systemName: "wrench")
+                .font(.caption2)
+            Text(summaryText(kinds))
+                .font(.caption2)
+            if interactive {
+                Image(systemName: "arrow.up.right.square")
+                    .font(.caption2)
+                    .foregroundStyle(.tertiary)
+            }
+        }
+        .foregroundStyle(.tertiary)
+    }
+
     private func summaryText(_ kinds: [ToolKind: Int]) -> String {
         let total = kinds.values.reduce(0, +)
         let parts = kinds.sorted(by: { $0.value > $1.value })
diff --git a/scarf/scarf/Features/Chat/Views/RichChatView.swift b/scarf/scarf/Features/Chat/Views/RichChatView.swift
index 484a49a..ae684cd 100644
--- a/scarf/scarf/Features/Chat/Views/RichChatView.swift
+++ b/scarf/scarf/Features/Chat/Views/RichChatView.swift
@@ -22,6 +22,13 @@ struct RichChatView: View {
     @Environment(HermesFileWatcher.self) private var fileWatcher
     @Environment(ChatViewModel.self) private var chatViewModel
 
+    /// User-controlled font scale for the chat surface (issue #48).
+    /// Applied via `.environment(\.dynamicTypeSize, ...)` so message
+    /// list, input bar, session info bar, and the inspector pane all
+    /// scale together. Default 1.0 = today's UI.
+    @AppStorage(ChatDensityKeys.fontScale)
+    private var fontScale: Double = ChatFontScale.default
+
     /// In ACP mode, events drive updates directly — no DB polling needed.
     private var isACPMode: Bool { chatViewModel.isACPConnected }
 
@@ -42,6 +49,7 @@ struct RichChatView: View {
                 .frame(width: 320)
         }
         .frame(minHeight: 0, idealHeight: 500, maxHeight: .infinity)
+        .environment(\.dynamicTypeSize, ChatFontScale.dynamicTypeSize(for: fontScale))
         // DB polling fallback for terminal mode only — never overwrite ACP messages
         .onChange(of: fileWatcher.lastChangeDate) {
             if !isACPMode, !richChat.hasMessages, richChat.sessionId != nil {
diff --git a/scarf/scarf/Features/Chat/Views/RichMessageBubble.swift b/scarf/scarf/Features/Chat/Views/RichMessageBubble.swift
index d66f0b4..8d8bb23 100644
--- a/scarf/scarf/Features/Chat/Views/RichMessageBubble.swift
+++ b/scarf/scarf/Features/Chat/Views/RichMessageBubble.swift
@@ -14,6 +14,21 @@ struct RichMessageBubble: View, Equatable {
 
     @Environment(ChatViewModel.self) private var chatViewModel
 
+    /// Scarf-local chat density preferences (issues #47 / #48). All
+    /// three default to today's UI. Read here so the reasoning + tool-
+    /// call switches don't have to thread the values through every
+    /// layer; the AppStorage seam is one line per dependency.
+    @AppStorage(ChatDensityKeys.toolCardStyle)
+    private var toolCardStyleRaw: String = ToolCardStyle.full.rawValue
+    @AppStorage(ChatDensityKeys.reasoningStyle)
+    private var reasoningStyleRaw: String = ReasoningStyle.disclosure.rawValue
+    private var toolCardStyle: ToolCardStyle {
+        ToolCardStyle(rawValue: toolCardStyleRaw) ?? .full
+    }
+    private var reasoningStyle: ReasoningStyle {
+        ReasoningStyle(rawValue: reasoningStyleRaw) ?? .disclosure
+    }
+
     /// SwiftUI body short-circuit (issue #46). Settled bubbles
     /// (`message.id != 0`) are immutable — id equality plus a couple
     /// of cheap stored-field comparisons is sufficient. The streaming
@@ -102,13 +117,13 @@ struct RichMessageBubble: View, Equatable {
 
             VStack(alignment: .leading, spacing: 4) {
                 VStack(alignment: .leading, spacing: ScarfSpace.s2) {
-                    if message.hasReasoning {
+                    if message.hasReasoning, reasoningStyle != .hidden {
                         reasoningSection
                     }
                     if !message.content.isEmpty {
                         contentView
                     }
-                    if !message.toolCalls.isEmpty {
+                    if !message.toolCalls.isEmpty, toolCardStyle != .hidden {
                         toolCallsSection
                     }
                 }
@@ -148,7 +163,24 @@ struct RichMessageBubble: View, Equatable {
 
     // MARK: - Reasoning
 
+    /// Reasoning is rendered in one of three styles, controlled by
+    /// `Settings → Display → Chat density → Reasoning` (issue #48).
+    /// Token count for the reasoning-bearing message is kept in the
+    /// metadataFooter (always-visible), so collapsing or hiding the
+    /// box doesn't drop telemetry.
+    @ViewBuilder
     private var reasoningSection: some View {
+        switch reasoningStyle {
+        case .disclosure:
+            reasoningDisclosure
+        case .inline:
+            reasoningInline
+        case .hidden:
+            EmptyView()
+        }
+    }
+
+    private var reasoningDisclosure: some View {
         DisclosureGroup {
             Text(message.preferredReasoning ?? "")
                 .font(ScarfFont.monoSmall)
@@ -181,9 +213,44 @@ struct RichMessageBubble: View, Equatable {
         )
     }
 
+    /// Inline reasoning: italic foregroundFaint caption with a 9pt
+    /// brain prefix, no box / border / disclosure. Same data, far less
+    /// vertical space — addresses the #48 complaint.
+    private var reasoningInline: some View {
+        HStack(alignment: .firstTextBaseline, spacing: 5) {
+            Image(systemName: "brain")
+                .font(.system(size: 9))
+                .foregroundStyle(ScarfColor.warning)
+            Text(message.preferredReasoning ?? "")
+                .font(ScarfFont.caption)
+                .italic()
+                .foregroundStyle(ScarfColor.foregroundFaint)
+                .textSelection(.enabled)
+                .frame(maxWidth: .infinity, alignment: .leading)
+        }
+    }
+
     // MARK: - Tool Calls
 
+    /// Tool calls render in one of three styles, controlled by
+    /// `Settings → Display → Chat density → Tool calls` (issue #47).
+    /// `.hidden` is handled by the caller (skips this view entirely)
+    /// AND by the parent `MessageGroupView`, which makes its
+    /// always-visible toolSummary pill tappable so the inspector pane
+    /// remains reachable in both compact and hidden modes.
+    @ViewBuilder
     private var toolCallsSection: some View {
+        switch toolCardStyle {
+        case .full:
+            toolCallsFull
+        case .compact:
+            toolCallsCompact
+        case .hidden:
+            EmptyView()
+        }
+    }
+
+    private var toolCallsFull: some View {
         VStack(alignment: .leading, spacing: 4) {
             ForEach(message.toolCalls) { call in
                 ToolCallCard(
@@ -196,6 +263,78 @@ struct RichMessageBubble: View, Equatable {
         }
     }
 
+    /// One-line tappable chip per call. Click sets focus so the right-
+    /// pane inspector opens with the same data the inline expand
+    /// shows. Status dot mirrors the full-card status icon: in-flight
+    /// progress / success check / non-zero exit code → danger.
+    private var toolCallsCompact: some View {
+        VStack(alignment: .leading, spacing: 3) {
+            ForEach(message.toolCalls) { call in
+                let result = toolResults[call.callId]
+                let isFocused = chatViewModel.focusedToolCallId == call.callId
+                let color = compactToolColor(for: call.toolKind)
+                Button {
+                    chatViewModel.focusedToolCallId = call.callId
+                } label: {
+                    HStack(spacing: 6) {
+                        Image(systemName: call.toolKind.icon)
+                            .font(.system(size: 10))
+                            .foregroundStyle(color)
+                        Text(call.functionName)
+                            .font(ScarfFont.monoSmall)
+                            .fontWeight(.medium)
+                            .foregroundStyle(ScarfColor.foregroundPrimary)
+                            .lineLimit(1)
+                            .truncationMode(.tail)
+                        Spacer(minLength: 6)
+                        compactStatusIcon(call: call, result: result)
+                    }
+                    .padding(.horizontal, 8)
+                    .padding(.vertical, 3)
+                    .background(
+                        RoundedRectangle(cornerRadius: 5)
+                            .fill(color.opacity(isFocused ? 0.16 : 0.08))
+                            .overlay(
+                                RoundedRectangle(cornerRadius: 5)
+                                    .strokeBorder(
+                                        color.opacity(isFocused ? 0.45 : 0.20),
+                                        lineWidth: isFocused ? 1.2 : 1
+                                    )
+                            )
+                    )
+                }
+                .buttonStyle(.plain)
+                .help("Click to inspect this tool call")
+            }
+        }
+    }
+
+    @ViewBuilder
+    private func compactStatusIcon(call: HermesToolCall, result: HermesMessage?) -> some View {
+        if let exit = call.exitCode {
+            Image(systemName: exit == 0 ? "checkmark.circle.fill" : "xmark.circle.fill")
+                .font(.system(size: 10))
+                .foregroundStyle(exit == 0 ? ScarfColor.success : ScarfColor.danger)
+        } else if result != nil {
+            Image(systemName: "checkmark.circle.fill")
+                .font(.system(size: 10))
+                .foregroundStyle(ScarfColor.success)
+        } else {
+            ProgressView().controlSize(.mini)
+        }
+    }
+
+    private func compactToolColor(for kind: ToolKind) -> Color {
+        switch kind {
+        case .read:    return ScarfColor.success
+        case .edit:    return ScarfColor.info
+        case .execute: return ScarfColor.warning
+        case .fetch:   return ScarfColor.Tool.web
+        case .browser: return ScarfColor.Tool.search
+        case .other:   return ScarfColor.foregroundMuted
+        }
+    }
+
     // MARK: - Metadata Footer
 
     private var metadataFooter: some View {
diff --git a/scarf/scarf/Features/Settings/Views/Tabs/DisplayTab.swift b/scarf/scarf/Features/Settings/Views/Tabs/DisplayTab.swift
index 4696dbb..4d5d6e9 100644
--- a/scarf/scarf/Features/Settings/Views/Tabs/DisplayTab.swift
+++ b/scarf/scarf/Features/Settings/Views/Tabs/DisplayTab.swift
@@ -1,11 +1,38 @@
 import SwiftUI
 import ScarfCore
+import ScarfDesign
 
 /// Display tab — streaming, reasoning, cost, skin, compact mode, inline diffs, bell, etc.
 struct DisplayTab: View {
     @Bindable var viewModel: SettingsViewModel
 
+    /// Scarf-local chat density preferences (issues #47 / #48).
+    /// Independent of the Hermes config flags rendered in the
+    /// "Output" section below — those control what Hermes EMITS,
+    /// these control how Scarf RENDERS what was emitted.
+    @AppStorage(ChatDensityKeys.toolCardStyle)
+    private var toolCardStyle: String = ToolCardStyle.full.rawValue
+    @AppStorage(ChatDensityKeys.reasoningStyle)
+    private var reasoningStyle: String = ReasoningStyle.disclosure.rawValue
+    @AppStorage(ChatDensityKeys.fontScale)
+    private var fontScale: Double = ChatFontScale.default
+
     var body: some View {
+        SettingsSection(title: "Chat density", icon: "rectangle.compress.vertical") {
+            DensityPickerRow(
+                label: "Tool calls",
+                selection: $toolCardStyle,
+                options: ToolCardStyle.allCases.map { ($0.rawValue, $0.displayName) }
+            )
+            DensityPickerRow(
+                label: "Reasoning",
+                selection: $reasoningStyle,
+                options: ReasoningStyle.allCases.map { ($0.rawValue, $0.displayName) }
+            )
+            FontScaleRow(scale: $fontScale)
+            DensityFootnote()
+        }
+
         SettingsSection(title: "Output", icon: "doc.plaintext") {
             ToggleRow(label: "Streaming", isOn: viewModel.config.streaming) { viewModel.setStreaming($0) }
             ToggleRow(label: "Show Reasoning", isOn: viewModel.config.showReasoning) { viewModel.setShowReasoning($0) }
@@ -32,3 +59,82 @@ struct DisplayTab: View {
         }
     }
 }
+
+// MARK: - Density-section primitives
+
+/// Segmented picker over (rawValue, displayName) tuples — keeps the
+/// existing `PickerRow` simple-string contract while still letting us
+/// render distinct user-facing labels for each density enum case.
+/// Cannot reuse the generic `PickerRow` in `SettingsComponents.swift`:
+/// that one is `.menu` style and doesn't accept a separate display
+/// name per option.
+private struct DensityPickerRow: View {
+    let label: String
+    @Binding var selection: String
+    let options: [(rawValue: String, displayName: String)]
+
+    var body: some View {
+        HStack {
+            Text(label)
+                .scarfStyle(.caption)
+                .foregroundStyle(ScarfColor.foregroundMuted)
+                .frame(width: 160, alignment: .trailing)
+            Picker("", selection: $selection) {
+                ForEach(options, id: \.rawValue) { option in
+                    Text(option.displayName).tag(option.rawValue)
+                }
+            }
+            .pickerStyle(.segmented)
+            .labelsHidden()
+            .frame(maxWidth: 320)
+            Spacer()
+        }
+        .padding(.horizontal, ScarfSpace.s3)
+        .padding(.vertical, 6)
+        .background(ScarfColor.backgroundTertiary.opacity(0.5))
+    }
+}
+
+private struct FontScaleRow: View {
+    @Binding var scale: Double
+
+    var body: some View {
+        HStack {
+            Text("Chat font size")
+                .scarfStyle(.caption)
+                .foregroundStyle(ScarfColor.foregroundMuted)
+                .frame(width: 160, alignment: .trailing)
+            Slider(
+                value: $scale,
+                in: ChatFontScale.min...ChatFontScale.max,
+                step: ChatFontScale.step
+            )
+            .frame(maxWidth: 240)
+            Text(ChatFontScale.percentLabel(for: scale))
+                .font(ScarfFont.monoSmall)
+                .foregroundStyle(ScarfColor.foregroundMuted)
+                .frame(width: 48, alignment: .leading)
+            Button("Reset") {
+                scale = ChatFontScale.default
+            }
+            .buttonStyle(.borderless)
+            .controlSize(.small)
+            .disabled(abs(scale - ChatFontScale.default) < 0.001)
+            Spacer()
+        }
+        .padding(.horizontal, ScarfSpace.s3)
+        .padding(.vertical, 6)
+        .background(ScarfColor.backgroundTertiary.opacity(0.5))
+    }
+}
+
+private struct DensityFootnote: View {
+    var body: some View {
+        Text("Controls how Scarf renders the chat. Use Output → Show Reasoning to control what Hermes sends.")
+            .scarfStyle(.caption)
+            .foregroundStyle(ScarfColor.foregroundFaint)
+            .frame(maxWidth: .infinity, alignment: .leading)
+            .padding(.horizontal, ScarfSpace.s3)
+            .padding(.vertical, 6)
+    }
+}