diff --git a/dist/index.html b/dist/index.html
index 732195d..a1120d6 100644
--- a/dist/index.html
+++ b/dist/index.html
@@ -5810,11 +5810,20 @@ var SettingsStore = class {
 	set lockOnTabSwitch(value) {
 		set(this.#lockOnTabSwitch, value, true);
 	}
+	#dismissedLocalWarning = /* @__PURE__ */ state(false);
+	get dismissedLocalWarning() {
+		return get(this.#dismissedLocalWarning);
+	}
+	set dismissedLocalWarning(value) {
+		set(this.#dismissedLocalWarning, value, true);
+	}
 	async load() {
 		const minutes = await getSetting("autoLockMinutes");
 		const tabSwitch = await getSetting("lockOnTabSwitch");
+		const dismissedWarning = await getSetting("dismissedLocalWarning");
 		this.autoLockMinutes = minutes != null ? Number(minutes) : 5;
 		this.lockOnTabSwitch = tabSwitch != null ? Boolean(tabSwitch) : true;
+		this.dismissedLocalWarning = dismissedWarning != null ? Boolean(dismissedWarning) : false;
 	}
 	/**
 	* Persist current settings to IndexedDB.
@@ -5822,6 +5831,7 @@ var SettingsStore = class {
 	async save() {
 		await saveSetting("autoLockMinutes", this.autoLockMinutes);
 		await saveSetting("lockOnTabSwitch", this.lockOnTabSwitch);
+		await saveSetting("dismissedLocalWarning", this.dismissedLocalWarning);
 	}
 };
 var settings = new SettingsStore();
@@ -5927,7 +5937,7 @@ function autofocus(node, condition = true) {
 }
 //#endregion
 //#region src/components/LockScreen.svelte
-var root_1$7 = /* @__PURE__ */ from_html(`<div class="warning-banner svelte-7sq1ct" role="alert">You're viewing this from a web server. For best security, download this HTML file and open it locally on your computer instead.</div>`);
+var root_1$7 = /* @__PURE__ */ from_html(`<div class="warning-banner svelte-7sq1ct" role="alert"><span class="warning-text svelte-7sq1ct">You're viewing this from a web server. For best security, download this HTML file and open it locally on your computer instead.</span> <button class="warning-dismiss svelte-7sq1ct" aria-label="Dismiss warning">✕</button></div>`);
 var root_2$6 = /* @__PURE__ */ from_html(`<div class="error-banner svelte-7sq1ct" role="alert"> </div>`);
 var root_3$6 = /* @__PURE__ */ from_html(`<div class="form-group"><label for="confirm-password">Confirm Password</label> <input id="confirm-password" type="password" placeholder="Confirm master password" autocomplete="new-password"/></div>`);
 var root$7 = /* @__PURE__ */ from_html(`<div class="lock-screen svelte-7sq1ct"><div class="lock-card svelte-7sq1ct"><div class="lock-icon svelte-7sq1ct">🔐</div> <h1 class="svelte-7sq1ct">Password Vault</h1> <p class="subtitle svelte-7sq1ct"> </p> <!> <!> <form class="lock-form svelte-7sq1ct"><div class="form-group"><label for="master-password">Master Password</label> <input id="master-password" type="password" placeholder="Enter master password" autocomplete="current-password"/></div> <!> <button type="submit" class="btn btn-primary w-full"> </button></form> <p class="hint svelte-7sq1ct"> </p></div></div>`);
@@ -5943,6 +5953,16 @@ function LockScreen($$anchor, $$props) {
 		set(isSetup, !await isVaultInitialized());
 	}
 	checkVault();
+	let showLocalWarning = /* @__PURE__ */ state(true);
+	async function dismissLocalWarning() {
+		settings.dismissedLocalWarning = true;
+		set(showLocalWarning, false);
+		try {
+			await settings.save();
+		} catch (e) {
+			console.warn("Failed to persist warning dismissal:", e);
+		}
+	}
 	async function handleSubmit() {
 		set(error, "");
 		set(loading, true);
@@ -6000,10 +6020,14 @@ function LockScreen($$anchor, $$props) {
 	reset(p);
 	var node = sibling(p, 2);
 	var consequent = ($$anchor) => {
-		append($$anchor, root_1$7());
+		var div_2 = root_1$7();
+		var button = sibling(child(div_2), 2);
+		reset(div_2);
+		delegated("click", button, dismissLocalWarning);
+		append($$anchor, div_2);
 	};
 	if_block(node, ($$render) => {
-		if (get(notLocal)) $$render(consequent);
+		if (get(notLocal) && get(showLocalWarning) && !settings.dismissedLocalWarning) $$render(consequent);
 	});
 	var node_1 = sibling(node, 2);
 	var consequent_1 = ($$anchor) => {
@@ -6036,9 +6060,9 @@ function LockScreen($$anchor, $$props) {
 	if_block(node_2, ($$render) => {
 		if (get(isSetup)) $$render(consequent_2);
 	});
-	var button = sibling(node_2, 2);
-	var text_2 = child(button, true);
-	reset(button);
+	var button_1 = sibling(node_2, 2);
+	var text_2 = child(button_1, true);
+	reset(button_1);
 	reset(form);
 	var p_1 = sibling(form, 2);
 	var text_3 = child(p_1, true);
@@ -6048,7 +6072,7 @@ function LockScreen($$anchor, $$props) {
 	template_effect(() => {
 		set_text(text, get(isSetup) ? "Create your vault" : "Unlock your vault");
 		input.disabled = get(loading);
-		button.disabled = get(loading);
+		button_1.disabled = get(loading);
 		set_text(text_2, get(loading) ? "Processing..." : get(isSetup) ? "Create Vault" : "Unlock");
 		set_text(text_3, get(isSetup) ? "Your master password encrypts all data locally. It cannot be recovered if lost." : "Your data is encrypted with AES-256-GCM. Key is stored only in memory.");
 	});
@@ -6059,6 +6083,7 @@ function LockScreen($$anchor, $$props) {
 	append($$anchor, div);
 	pop();
 }
+delegate(["click"]);
 //#endregion
 //#region src/lib/stores/search.svelte.js
 var DEBOUNCE_MS = 300;
@@ -8204,13 +8229,35 @@ label {
 
   .warning-banner.svelte-7sq1ct {
     width: 100%;
-    padding: 10px 14px;
+    display: flex;
+    align-items: flex-start;
+    gap: 8px;
+    padding: 10px 10px 10px 14px;
     background: rgba(255, 193, 7, 0.15);
     border: 1px solid rgba(230, 168, 0, 0.5);
     border-radius: var(--radius-md);
     color: #b8860b;
     font-size: 0.85rem;
-    text-align: center;
+  }
+
+  .warning-text.svelte-7sq1ct {
+    flex: 1;
+    text-align: left;
+  }
+
+  .warning-dismiss.svelte-7sq1ct {
+    flex-shrink: 0;
+    border: none;
+    background: transparent;
+    color: inherit;
+    font-size: 0.9rem;
+    line-height: 1;
+    cursor: pointer;
+    padding: 0 2px;
+    opacity: 0.7;
+  }
+  .warning-dismiss.svelte-7sq1ct:hover {
+    opacity: 1;
   }
 
   .hint.svelte-7sq1ct {
diff --git a/src/components/LockScreen.svelte b/src/components/LockScreen.svelte
index 0e5f1e2..e2eb039 100644
--- a/src/components/LockScreen.svelte
+++ b/src/components/LockScreen.svelte
@@ -19,6 +19,16 @@
   }
   checkVault()
 
+  // Dismissed warning state loads from the settings store (which loads on
+  // unlock/setup). Track locally so the banner hides immediately on click.
+  let showLocalWarning = $state(true)
+
+  async function dismissLocalWarning() {
+    settings.dismissedLocalWarning = true
+    showLocalWarning = false
+    try { await settings.save() } catch (e) { console.warn('Failed to persist warning dismissal:', e) }
+  }
+
   async function handleSubmit() {
     error = ''
     loading = true
@@ -88,8 +98,11 @@
     <h1>Password Vault</h1>
     <p class="subtitle">{isSetup ? 'Create your vault' : 'Unlock your vault'}</p>
 
-    {#if notLocal}
-      <div class="warning-banner" role="alert">This HTML file is intended for offline use.</div>
+    {#if notLocal && showLocalWarning && !settings.dismissedLocalWarning}
+      <div class="warning-banner" role="alert">
+        <span class="warning-text">You're viewing this from a web server. For best security, download this HTML file and open it locally on your computer instead.</span>
+        <button class="warning-dismiss" onclick={dismissLocalWarning} aria-label="Dismiss warning">✕</button>
+      </div>
     {/if}
 
     {#if error}
@@ -196,13 +209,35 @@
 
   .warning-banner {
     width: 100%;
-    padding: 10px 14px;
+    display: flex;
+    align-items: flex-start;
+    gap: 8px;
+    padding: 10px 10px 10px 14px;
     background: rgba(255, 193, 7, 0.15);
     border: 1px solid rgba(230, 168, 0, 0.5);
     border-radius: var(--radius-md);
     color: #b8860b;
     font-size: 0.85rem;
-    text-align: center;
+  }
+
+  .warning-text {
+    flex: 1;
+    text-align: left;
+  }
+
+  .warning-dismiss {
+    flex-shrink: 0;
+    border: none;
+    background: transparent;
+    color: inherit;
+    font-size: 0.9rem;
+    line-height: 1;
+    cursor: pointer;
+    padding: 0 2px;
+    opacity: 0.7;
+  }
+  .warning-dismiss:hover {
+    opacity: 1;
   }
 
   .hint {
diff --git a/src/lib/stores/settings.svelte.js b/src/lib/stores/settings.svelte.js
index 5ee613c..baef51a 100644
--- a/src/lib/stores/settings.svelte.js
+++ b/src/lib/stores/settings.svelte.js
@@ -10,6 +10,8 @@ import { getSetting, saveSetting } from '../storage/db.js'
 export class SettingsStore {
   autoLockMinutes = $state(5)
   lockOnTabSwitch = $state(true)
+  // User dismissed the "running from a web server" warning banner on the lock screen.
+  dismissedLocalWarning = $state(false)
 
   /**
    * Load persisted settings from IndexedDB.
@@ -18,9 +20,11 @@ export class SettingsStore {
   async load() {
     const minutes = await getSetting('autoLockMinutes')
     const tabSwitch = await getSetting('lockOnTabSwitch')
+    const dismissedWarning = await getSetting('dismissedLocalWarning')
 
     this.autoLockMinutes = minutes != null ? Number(minutes) : 5
     this.lockOnTabSwitch = tabSwitch != null ? Boolean(tabSwitch) : true
+    this.dismissedLocalWarning = dismissedWarning != null ? Boolean(dismissedWarning) : false
   }
 
   /**
@@ -29,6 +33,7 @@ export class SettingsStore {
   async save() {
     await saveSetting('autoLockMinutes', this.autoLockMinutes)
     await saveSetting('lockOnTabSwitch', this.lockOnTabSwitch)
+    await saveSetting('dismissedLocalWarning', this.dismissedLocalWarning)
   }
 }