diff --git a/src/app/api/task-notes/route.js b/src/app/api/task-notes/route.js
index 8631073..28652ac 100644
--- a/src/app/api/task-notes/route.js
+++ b/src/app/api/task-notes/route.js
@@ -28,7 +28,7 @@ export async function GET(req) {
 // POST: Add a note to a task
 export async function POST(req) {
 	try {
-		const { task_id, note } = await req.json();
+		const { task_id, note, is_system } = await req.json();
 
 		if (!task_id || !note) {
 			return NextResponse.json(
@@ -37,7 +37,7 @@ export async function POST(req) {
 			);
 		}
 
-		addNoteToTask(task_id, note);
+		addNoteToTask(task_id, note, is_system);
 		return NextResponse.json({ success: true });
 	} catch (error) {
 		console.error("Error adding task note:", error);
diff --git a/src/components/ProjectTasksSection.js b/src/components/ProjectTasksSection.js
index 2bb6874..3d8a7c8 100644
--- a/src/components/ProjectTasksSection.js
+++ b/src/components/ProjectTasksSection.js
@@ -516,9 +516,7 @@ export default function ProjectTasksSection({ projectId }) {
 														</div>
 													</td>
 												</tr>
-											)}
-
-											{/* Notes row (expandable) */}
+											)}											{/* Notes row (expandable) */}
 											{expandedNotes[task.id] && (
 												<tr className="bg-gray-50">
 													<td colSpan="6" className="px-4 py-4">
@@ -534,9 +532,20 @@ export default function ProjectTasksSection({ projectId }) {
 																		{taskNotes[task.id].map((note) => (
 																			<div
 																				key={note.note_id}
-																				className="bg-white p-3 rounded border flex justify-between items-start"
+																				className={`p-3 rounded border flex justify-between items-start ${
+																					note.is_system 
+																						? 'bg-blue-50 border-blue-200' 
+																						: 'bg-white border-gray-200'
+																				}`}
 																			>
 																				<div className="flex-1">
+																					<div className="flex items-center gap-2 mb-1">
+																						{note.is_system && (
+																							<span className="px-2 py-1 text-xs bg-blue-100 text-blue-700 rounded-full font-medium">
+																								System
+																							</span>
+																						)}
+																					</div>
 																					<p className="text-sm text-gray-800">
 																						{note.note}
 																					</p>
@@ -550,18 +559,20 @@ export default function ProjectTasksSection({ projectId }) {
 																						).toLocaleTimeString()}
 																					</p>
 																				</div>
-																				<button
-																					onClick={() =>
-																						handleDeleteNote(
-																							note.note_id,
-																							task.id
-																						)
-																					}
-																					className="ml-2 text-red-500 hover:text-red-700 text-xs font-bold"
-																					title="Delete note"
-																				>
-																					×
-																				</button>
+																				{!note.is_system && (
+																					<button
+																						onClick={() =>
+																							handleDeleteNote(
+																								note.note_id,
+																								task.id
+																							)
+																						}
+																						className="ml-2 text-red-500 hover:text-red-700 text-xs font-bold"
+																						title="Delete note"
+																					>
+																						×
+																					</button>
+																				)}
 																			</div>
 																		))}
 																	</div>
diff --git a/src/lib/init-db.js b/src/lib/init-db.js
index 925994a..d29a17d 100644
--- a/src/lib/init-db.js
+++ b/src/lib/init-db.js
@@ -137,7 +137,6 @@ export default function initializeDatabase() {
 	} catch (e) {
 		// Column migration already done or geo_info doesn't exist, ignore error
 	}
-
 	// Migration: Add date_started column to project_tasks table
 	try {
 		db.exec(`
@@ -146,4 +145,13 @@ export default function initializeDatabase() {
 	} catch (e) {
 		// Column already exists, ignore error
 	}
+
+	// Migration: Add is_system column to notes table
+	try {
+		db.exec(`
+      ALTER TABLE notes ADD COLUMN is_system INTEGER DEFAULT 0;
+    `);
+	} catch (e) {
+		// Column already exists, ignore error
+	}
 }
diff --git a/src/lib/queries/notes.js b/src/lib/queries/notes.js
index b1befbe..a134d46 100644
--- a/src/lib/queries/notes.js
+++ b/src/lib/queries/notes.js
@@ -19,10 +19,11 @@ export function getNotesByTaskId(task_id) {
 		.all(task_id);
 }
 
-export function addNoteToTask(task_id, note) {
-	db.prepare(`INSERT INTO notes (task_id, note) VALUES (?, ?)`).run(
+export function addNoteToTask(task_id, note, is_system = false) {
+	db.prepare(`INSERT INTO notes (task_id, note, is_system) VALUES (?, ?, ?)`).run(
 		task_id,
-		note
+		note,
+		is_system ? 1 : 0
 	);
 }
 
diff --git a/src/lib/queries/tasks.js b/src/lib/queries/tasks.js
index 6e558aa..33fb821 100644
--- a/src/lib/queries/tasks.js
+++ b/src/lib/queries/tasks.js
@@ -1,4 +1,5 @@
 import db from "../db.js";
+import { addNoteToTask } from "./notes.js";
 
 // Get all task templates (for dropdown selection)
 export function getAllTaskTemplates() {
@@ -59,25 +60,33 @@ export function getProjectTasks(projectId) {
 
 // Create a new project task
 export function createProjectTask(data) {
+	let result;
+	let taskName;
+	
 	if (data.task_template_id) {
 		// Creating from template - explicitly set custom_max_wait_days to NULL so COALESCE uses template value
 		const stmt = db.prepare(`
 			INSERT INTO project_tasks (project_id, task_template_id, custom_max_wait_days, status, priority)
 			VALUES (?, ?, NULL, ?, ?)
 		`);
-		return stmt.run(
+		result = stmt.run(
 			data.project_id,
 			data.task_template_id,
 			data.status || "pending",
 			data.priority || "normal"
 		);
+		
+		// Get the template name for the log
+		const templateStmt = db.prepare("SELECT name FROM tasks WHERE task_id = ?");
+		const template = templateStmt.get(data.task_template_id);
+		taskName = template?.name || "Unknown template";
 	} else {
 		// Creating custom task
 		const stmt = db.prepare(`
 			INSERT INTO project_tasks (project_id, custom_task_name, custom_max_wait_days, custom_description, status, priority)
 			VALUES (?, ?, ?, ?, ?, ?)
 		`);
-		return stmt.run(
+		result = stmt.run(
 			data.project_id,
 			data.custom_task_name,
 			data.custom_max_wait_days || 0,
@@ -85,31 +94,50 @@ export function createProjectTask(data) {
 			data.status || "pending",
 			data.priority || "normal"
 		);
+		
+		taskName = data.custom_task_name;
 	}
+
+	// Add system note for task creation
+	if (result.lastInsertRowid) {
+		const priority = data.priority || "normal";
+		const status = data.status || "pending";
+		const logMessage = `Task "${taskName}" created with priority: ${priority}, status: ${status}`;
+		addNoteToTask(result.lastInsertRowid, logMessage, true);
+	}
+
+	return result;
 }
 
 // Update project task status
 export function updateProjectTaskStatus(taskId, status) {
-	// First get the current status to check if we're transitioning from pending to in_progress
-	const getCurrentStatus = db.prepare(
-		"SELECT status FROM project_tasks WHERE id = ?"
-	);
-	const currentTask = getCurrentStatus.get(taskId);
+	// First get the current task details for logging
+	const getCurrentTask = db.prepare(`
+		SELECT 
+			pt.status,
+			COALESCE(pt.custom_task_name, t.name) as task_name
+		FROM project_tasks pt
+		LEFT JOIN tasks t ON pt.task_template_id = t.task_id
+		WHERE pt.id = ?
+	`);
+	const currentTask = getCurrentTask.get(taskId);
 
+	if (!currentTask) {
+		throw new Error(`Task with ID ${taskId} not found`);
+	}
+
+	const oldStatus = currentTask.status;
 	let stmt;
+	let result;
 
-	if (
-		currentTask &&
-		currentTask.status === "pending" &&
-		status === "in_progress"
-	) {
+	if (oldStatus === "pending" && status === "in_progress") {
 		// Starting a task - set date_started
 		stmt = db.prepare(`
 			UPDATE project_tasks 
 			SET status = ?, date_started = CURRENT_TIMESTAMP
 			WHERE id = ?
 		`);
-		return stmt.run(status, taskId);
+		result = stmt.run(status, taskId);
 	} else {
 		// Just updating status without changing date_started
 		stmt = db.prepare(`
@@ -117,8 +145,17 @@ export function updateProjectTaskStatus(taskId, status) {
 			SET status = ?
 			WHERE id = ?
 		`);
-		return stmt.run(status, taskId);
+		result = stmt.run(status, taskId);
 	}
+
+	// Add system note for status change (only if status actually changed)
+	if (result.changes > 0 && oldStatus !== status) {
+		const taskName = currentTask.task_name || "Unknown task";
+		const logMessage = `Status changed from "${oldStatus}" to "${status}"`;
+		addNoteToTask(taskId, logMessage, true);
+	}
+
+	return result;
 }
 
 // Delete a project task