diff --git a/src/features/background/options/sections/SourceSection.jsx b/src/features/background/options/sections/SourceSection.jsx
index dfc6f78f..2ba748d6 100644
--- a/src/features/background/options/sections/SourceSection.jsx
+++ b/src/features/background/options/sections/SourceSection.jsx
@@ -5,7 +5,6 @@ import { Row, Content, Action } from 'components/Layout/Settings/Item';
 import { Button } from 'components/Elements';
 import Items from 'features/marketplace/components/Items/Items';
 import { getBackgroundOptionItems } from '../optionTypes';
-import PhotoPackSettings from './PhotoPackSettings';
 
 const SourceSection = ({
   backgroundType,
@@ -69,11 +68,6 @@ const SourceSection = ({
             viewType="grid"
             showChips={false}
           />
-
-          {/* Settings for API packs */}
-          {installedPhotoPacks.map((pack) =>
-            pack.api_enabled ? <PhotoPackSettings key={pack.id} pack={pack} /> : null,
-          )}
         </>
       )}
     </>
diff --git a/src/features/marketplace/components/Items/Items.jsx b/src/features/marketplace/components/Items/Items.jsx
index f4154684..059d98c8 100644
--- a/src/features/marketplace/components/Items/Items.jsx
+++ b/src/features/marketplace/components/Items/Items.jsx
@@ -1,6 +1,6 @@
 import variables from 'config/variables';
 import React, { memo, useState, useMemo } from 'react';
-import { MdCheckCircle, MdOutlineUploadFile, MdClose } from 'react-icons/md';
+import { MdCheckCircle, MdOutlineUploadFile, MdClose, MdSettings } from 'react-icons/md';
 import placeholderIcon from 'assets/icons/marketplace-placeholder.png';
 
 import { Tooltip } from 'components/Elements';
@@ -9,6 +9,7 @@ import Switch from 'components/Form/Settings/Switch/Switch';
 import Dropdown from '../../../../components/Form/Settings/Dropdown/Dropdown';
 import EventBus from 'utils/eventbus';
 import { getProxiedImageUrl } from 'utils/marketplace';
+import ItemSettingsModal from '../Modals/ItemSettingsModal';
 
 function filterItems(item, filter, categoryFilter) {
   const lowerCaseFilter = filter.toLowerCase();
@@ -68,6 +69,8 @@ function ItemCard({
 }) {
   const isSideloaded = item.sideload === true;
   const packId = item.id || item.name;
+  const isPhotoPack = item.type === 'photos' || item.type === 'photo_packs';
+  const hasSettings = isPhotoPack && item.settings_schema && item.settings_schema.length > 0;
 
   // Use React state to manage enabled status for immediate UI updates
   const [isEnabled, setIsEnabled] = useState(() => {
@@ -75,6 +78,15 @@ function ItemCard({
     return enabledPacks[packId] !== false; // Default to enabled if not set
   });
 
+  const [showSettingsModal, setShowSettingsModal] = useState(false);
+
+  const handleCardClick = () => {
+    if (isSideloaded || showSettingsModal) {
+      return;
+    }
+    toggleFunction(item);
+  };
+
   const handleTogglePack = (e) => {
     e.stopPropagation();
     const newState = !isEnabled;
@@ -100,7 +112,7 @@ function ItemCard({
   return (
     <div
       className={`item ${isSideloaded ? 'item-sideloaded' : ''} ${!isEnabled && isAdded ? 'item-disabled' : ''}`}
-      onClick={isSideloaded ? undefined : () => toggleFunction(item)}
+      onClick={handleCardClick}
       key={item.name}
     >
       {isAdded && onTogglePack && (
@@ -207,18 +219,38 @@ function ItemCard({
         )}
 
         {isAdded && onUninstall && (
-          <Button
-            type="settings"
-            onClick={(e) => {
-              e.stopPropagation();
-              onUninstall(item.type, item.name);
-            }}
-            icon={<MdClose />}
-            label={variables.getMessage('modals.main.marketplace.product.buttons.remove')}
-            style={{ marginTop: '10px', width: '100%' }}
-          />
+          <div style={{ display: 'flex', gap: '8px', marginTop: '10px', width: '100%' }}>
+            <Button
+              type="settings"
+              onClick={(e) => {
+                e.stopPropagation();
+                setShowSettingsModal(true);
+              }}
+              icon={<MdSettings />}
+              label={variables.getMessage('modals.main.marketplace.product.buttons.settings')}
+              style={{ flex: 1 }}
+            />
+            <Button
+              type="settings"
+              onClick={(e) => {
+                e.stopPropagation();
+                onUninstall(item.type, item.name);
+              }}
+              icon={<MdClose />}
+              label={variables.getMessage('modals.main.marketplace.product.buttons.remove')}
+              style={{ flex: 1 }}
+            />
+          </div>
         )}
       </div>
+      {isAdded && (
+        <ItemSettingsModal
+          pack={item}
+          isOpen={showSettingsModal}
+          onClose={() => setShowSettingsModal(false)}
+          isEnabled={isEnabled}
+        />
+      )}
     </div>
   );
 }
diff --git a/src/features/marketplace/components/Modals/ItemSettingsModal.jsx b/src/features/marketplace/components/Modals/ItemSettingsModal.jsx
new file mode 100644
index 00000000..b55eea28
--- /dev/null
+++ b/src/features/marketplace/components/Modals/ItemSettingsModal.jsx
@@ -0,0 +1,290 @@
+import { useState, useEffect, useCallback } from 'react';
+import Modal from 'react-modal';
+import variables from 'config/variables';
+import EventBus from 'utils/eventbus';
+import { Dropdown, Text, Switch, Slider, ChipSelect } from 'components/Form/Settings';
+import { Button } from 'components/Elements';
+import { refreshAPIPackCache } from 'features/background/api/photoPackAPI';
+import { MdRefresh, MdWarning, MdClose, MdCheckCircle, MdCancel } from 'react-icons/md';
+import { getProxiedImageUrl } from 'utils/marketplace';
+import placeholderIcon from 'assets/icons/marketplace-placeholder.png';
+import './ItemSettingsModal.scss';
+
+const ItemSettingsModal = ({ pack, isOpen, onClose, isEnabled }) => {
+  const [settings, setSettings] = useState(() => {
+    const saved = localStorage.getItem(`photopack_settings_${pack.id}`);
+    return saved ? JSON.parse(saved) : {};
+  });
+
+  const [dynamicOptions, setDynamicOptions] = useState({});
+  const [isRefreshing, setIsRefreshing] = useState(false);
+  const [validationErrors, setValidationErrors] = useState([]);
+
+  const validateSettings = useCallback(() => {
+    const errors = [];
+    pack.settings_schema?.forEach((field) => {
+      if (field.required && !settings[field.key]) {
+        errors.push(`${field.label} is required`);
+      }
+    });
+    setValidationErrors(errors);
+
+    // Update api_packs_ready list
+    const apiPacksReady = JSON.parse(localStorage.getItem('api_packs_ready') || '[]');
+    const isReady = errors.length === 0;
+    const isInList = apiPacksReady.includes(pack.id);
+
+    if (isReady && !isInList) {
+      apiPacksReady.push(pack.id);
+      localStorage.setItem('api_packs_ready', JSON.stringify(apiPacksReady));
+    } else if (!isReady && isInList) {
+      const filtered = apiPacksReady.filter((id) => id !== pack.id);
+      localStorage.setItem('api_packs_ready', JSON.stringify(filtered));
+    }
+  }, [pack.id, pack.settings_schema, settings]);
+
+  const loadDynamicOptions = async (field) => {
+    if (field.options_source === 'api:categories') {
+      try {
+        const response = await fetch(`${variables.constants.API_URL}/images/categories`);
+        const categories = await response.json();
+        setDynamicOptions((prev) => ({
+          ...prev,
+          [field.key]: categories,
+        }));
+      } catch (error) {
+        console.error('Failed to load categories:', error);
+      }
+    }
+  };
+
+  // Load dynamic options (e.g., categories from API)
+  useEffect(() => {
+    if (!pack.settings_schema || pack.settings_schema.length === 0) {
+      return;
+    }
+    pack.settings_schema.forEach((field) => {
+      if (field.dynamic && field.options_source) {
+        loadDynamicOptions(field);
+      }
+    });
+  }, [pack.id, pack.settings_schema]);
+
+  // Validate settings
+  useEffect(() => {
+    if (!pack.settings_schema || pack.settings_schema.length === 0) {
+      return;
+    }
+    validateSettings();
+  }, [settings, validateSettings, pack.settings_schema]);
+
+  const handleSettingChange = (key, value, secure = false) => {
+    const processedValue = secure ? btoa(value) : value;
+    const newSettings = { ...settings, [key]: processedValue };
+    setSettings(newSettings);
+    localStorage.setItem(`photopack_settings_${pack.id}`, JSON.stringify(newSettings));
+  };
+
+  const handleManualRefresh = async () => {
+    setIsRefreshing(true);
+    await refreshAPIPackCache(pack.id);
+    setIsRefreshing(false);
+    // Trigger background refresh
+    EventBus.emit('refresh', 'background');
+  };
+
+  const renderField = (field) => {
+    const value =
+      field.secure && settings[field.key]
+        ? atob(settings[field.key])
+        : settings[field.key] || field.default;
+
+    switch (field.type) {
+      case 'dropdown': {
+        const dropdownItems = field.options.map((opt) => ({
+          value: opt.value,
+          text: opt.label,
+        }));
+        return (
+          <Dropdown
+            label={field.label}
+            name={`${pack.id}_${field.key}`}
+            value={value}
+            items={dropdownItems}
+            onChange={(newValue) => handleSettingChange(field.key, newValue)}
+          />
+        );
+      }
+
+      case 'chipselect': {
+        const options = field.dynamic ? dynamicOptions[field.key] || [] : field.options;
+        return (
+          <ChipSelect
+            label={field.label}
+            options={options}
+            name={`${pack.id}_${field.key}`}
+            onChange={(newValue) => handleSettingChange(field.key, newValue)}
+          />
+        );
+      }
+
+      case 'text':
+        return (
+          <Text
+            title={field.label}
+            placeholder={field.placeholder}
+            value={value}
+            name={`${pack.id}_${field.key}`}
+            type={field.secure ? 'password' : 'text'}
+            onChange={(e) => handleSettingChange(field.key, e.target.value, field.secure)}
+            subtitle={field.help_text}
+          />
+        );
+
+      case 'switch':
+        return (
+          <Switch
+            name={`${pack.id}_${field.key}`}
+            text={field.label}
+            value={value}
+            onChange={(newValue) => handleSettingChange(field.key, newValue)}
+          />
+        );
+
+      case 'slider':
+        return (
+          <Slider
+            title={field.label}
+            name={`${pack.id}_${field.key}`}
+            min={field.min || 0}
+            max={field.max || 100}
+            step={field.step || 1}
+            value={value}
+            onChange={(newValue) => handleSettingChange(field.key, newValue)}
+          />
+        );
+
+      default:
+        return null;
+    }
+  };
+
+  const hasSettings = pack.settings_schema && pack.settings_schema.length > 0;
+  const isPhotoPack = pack.type === 'photos' || pack.type === 'photo_packs';
+
+  return (
+    <Modal
+      closeTimeoutMS={100}
+      onRequestClose={onClose}
+      isOpen={isOpen}
+      className="Modal photoPackSettingsModal"
+      overlayClassName="Overlay photoPackSettingsOverlay"
+      ariaHideApp={false}
+    >
+      <div className="photoPackSettings-header">
+        <div className="photoPackSettings-header-info">
+          {pack.icon_url ? (
+            <img
+              className="photoPackSettings-icon"
+              alt="icon"
+              draggable={false}
+              src={getProxiedImageUrl(pack.icon_url)}
+              onError={(e) => {
+                e.target.onerror = null;
+                e.target.src = placeholderIcon;
+              }}
+            />
+          ) : (
+            <div className="photoPackSettings-icon photoPackSettings-icon-text">
+              {(pack.display_name || pack.name)?.substring(0, 2).toUpperCase()}
+            </div>
+          )}
+          <div className="photoPackSettings-header-text">
+            <h2>{pack.display_name || pack.name}</h2>
+            <span className="photoPackSettings-subtitle">
+              {pack.author && `by ${pack.author}`}
+              {pack.version && <span className="photoPackSettings-version">v{pack.version}</span>}
+              <span className={`photoPackSettings-status ${isEnabled ? 'enabled' : 'disabled'}`}>
+                {isEnabled ? <MdCheckCircle /> : <MdCancel />}
+                {isEnabled ? 'Enabled' : 'Disabled'}
+              </span>
+            </span>
+          </div>
+        </div>
+        <button className="photoPackSettings-close" onClick={onClose} aria-label="Close">
+          <MdClose />
+        </button>
+      </div>
+
+      <div className="photoPackSettings-content">
+        {hasSettings && (
+          <>
+            {validationErrors.length > 0 && (
+              <div className="photoPackSettings-error">
+                <MdWarning />
+                <span>Configuration incomplete: {validationErrors.join(', ')}</span>
+              </div>
+            )}
+
+            <div className="photoPackSettings-fields">
+              {pack.settings_schema.map((field) => (
+                <div key={field.key} className="photoPackSettings-field">
+                  {renderField(field)}
+                </div>
+              ))}
+            </div>
+
+            {isPhotoPack && (
+              <div className="photoPackSettings-actions">
+                <Button
+                  onClick={handleManualRefresh}
+                  icon={<MdRefresh />}
+                  label={variables.getMessage(
+                    'modals.main.settings.sections.background.photo_pack_settings.refresh_photos',
+                  )}
+                  disabled={isRefreshing || validationErrors.length > 0}
+                />
+              </div>
+            )}
+          </>
+        )}
+
+        {!hasSettings && (
+          <div className="photoPackSettings-info">
+            <div className="photoPackSettings-info-item">
+              <span className="label">Type</span>
+              <span className="value">
+                {variables.getMessage(
+                  'modals.main.marketplace.' + getTypeTranslationKey(pack.type),
+                )}
+              </span>
+            </div>
+            {pack.description && (
+              <div className="photoPackSettings-info-item">
+                <span className="label">Description</span>
+                <span className="value">{pack.description}</span>
+              </div>
+            )}
+            {pack.sideload && (
+              <div className="photoPackSettings-info-item">
+                <span className="label">Source</span>
+                <span className="value">Sideloaded</span>
+              </div>
+            )}
+          </div>
+        )}
+      </div>
+    </Modal>
+  );
+};
+
+function getTypeTranslationKey(type) {
+  const typeMap = {
+    photos: 'photo_packs',
+    quotes: 'quote_packs',
+    settings: 'preset_settings',
+  };
+  return typeMap[type] || type;
+}
+
+export default ItemSettingsModal;
diff --git a/src/features/marketplace/components/Modals/ItemSettingsModal.scss b/src/features/marketplace/components/Modals/ItemSettingsModal.scss
new file mode 100644
index 00000000..7f61b2c2
--- /dev/null
+++ b/src/features/marketplace/components/Modals/ItemSettingsModal.scss
@@ -0,0 +1,182 @@
+.photoPackSettingsModal {
+  max-width: 600px;
+  width: 90%;
+  max-height: 80vh;
+  overflow-y: auto;
+  background: var(--modal-background, #1a1a1a);
+  border-radius: 12px;
+  padding: 0;
+}
+
+.photoPackSettingsOverlay {
+  background-color: rgba(0, 0, 0, 0.7);
+}
+
+.photoPackSettings-header {
+  display: flex;
+  align-items: center;
+  justify-content: space-between;
+  padding: 24px;
+  border-bottom: 1px solid rgba(255, 255, 255, 0.1);
+}
+
+.photoPackSettings-header-info {
+  display: flex;
+  align-items: center;
+  gap: 16px;
+}
+
+.photoPackSettings-icon {
+  width: 56px;
+  height: 56px;
+  border-radius: 12px;
+  object-fit: cover;
+}
+
+.photoPackSettings-icon-text {
+  display: flex;
+  align-items: center;
+  justify-content: center;
+  background: linear-gradient(135deg, var(--linkColor, #ff5c25) 0%, #ff8a25 100%);
+  color: white;
+  font-weight: 600;
+  font-size: 20px;
+}
+
+.photoPackSettings-header-text {
+  display: flex;
+  flex-direction: column;
+  gap: 4px;
+}
+
+.photoPackSettings-header-text h2 {
+  margin: 0;
+  font-size: 20px;
+  font-weight: 600;
+  color: var(--text-color, #fff);
+}
+
+.photoPackSettings-subtitle {
+  font-size: 14px;
+  color: var(--subtitle-color, rgba(255, 255, 255, 0.6));
+  display: flex;
+  align-items: center;
+  gap: 8px;
+  flex-wrap: wrap;
+}
+
+.photoPackSettings-version {
+  padding: 2px 8px;
+  background: rgba(255, 255, 255, 0.1);
+  border-radius: 4px;
+  font-size: 12px;
+  font-weight: 500;
+}
+
+.photoPackSettings-status {
+  display: flex;
+  align-items: center;
+  gap: 4px;
+  padding: 2px 8px;
+  border-radius: 4px;
+  font-size: 12px;
+  font-weight: 500;
+
+  &.enabled {
+    background: rgba(76, 175, 80, 0.2);
+    color: #4caf50;
+  }
+
+  &.disabled {
+    background: rgba(158, 158, 158, 0.2);
+    color: #9e9e9e;
+  }
+
+  svg {
+    font-size: 14px;
+  }
+}
+
+.photoPackSettings-close {
+  background: transparent;
+  border: none;
+  color: var(--text-color, #fff);
+  font-size: 24px;
+  cursor: pointer;
+  display: flex;
+  align-items: center;
+  justify-content: center;
+  padding: 8px;
+  border-radius: 8px;
+  transition: background 0.2s;
+}
+
+.photoPackSettings-close:hover {
+  background: rgba(255, 255, 255, 0.1);
+}
+
+.photoPackSettings-content {
+  padding: 24px;
+  display: flex;
+  flex-direction: column;
+  gap: 20px;
+}
+
+.photoPackSettings-error {
+  display: flex;
+  align-items: center;
+  gap: 8px;
+  padding: 12px 16px;
+  background: rgba(244, 67, 54, 0.1);
+  border: 1px solid rgba(244, 67, 54, 0.3);
+  border-radius: 8px;
+  color: #f44336;
+  font-size: 14px;
+}
+
+.photoPackSettings-error svg {
+  font-size: 20px;
+  flex-shrink: 0;
+}
+
+.photoPackSettings-fields {
+  display: flex;
+  flex-direction: column;
+  gap: 16px;
+}
+
+.photoPackSettings-field {
+  width: 100%;
+}
+
+.photoPackSettings-actions {
+  display: flex;
+  justify-content: flex-end;
+  padding-top: 16px;
+  border-top: 1px solid rgba(255, 255, 255, 0.1);
+}
+
+.photoPackSettings-info {
+  display: flex;
+  flex-direction: column;
+  gap: 16px;
+}
+
+.photoPackSettings-info-item {
+  display: flex;
+  flex-direction: column;
+  gap: 4px;
+
+  .label {
+    font-size: 12px;
+    text-transform: uppercase;
+    letter-spacing: 0.5px;
+    color: var(--subtitle-color, rgba(255, 255, 255, 0.5));
+    font-weight: 600;
+  }
+
+  .value {
+    font-size: 14px;
+    color: var(--text-color, rgba(255, 255, 255, 0.9));
+  }
+}