diff --git a/apps/web/src/components/kanban/KanbanBoard.test.tsx b/apps/web/src/components/kanban/KanbanBoard.test.tsx
index d7ea43d..2ddfd3c 100644
--- a/apps/web/src/components/kanban/KanbanBoard.test.tsx
+++ b/apps/web/src/components/kanban/KanbanBoard.test.tsx
@@ -1,22 +1,53 @@
 /* eslint-disable @typescript-eslint/no-non-null-assertion */
 /* eslint-disable @typescript-eslint/no-empty-function */
 import { describe, it, expect, vi, beforeEach } from "vitest";
-import { render, screen, within } from "@testing-library/react";
+import { render, screen, within, waitFor, act } from "@testing-library/react";
 import { KanbanBoard } from "./KanbanBoard";
 import type { Task } from "@mosaic/shared";
 import { TaskStatus, TaskPriority } from "@mosaic/shared";
+import type { ToastContextValue } from "@mosaic/ui";
 
 // Mock fetch globally
 global.fetch = vi.fn();
 
+// Mock useToast hook from @mosaic/ui
+const mockShowToast = vi.fn();
+vi.mock("@mosaic/ui", () => ({
+  useToast: (): ToastContextValue => ({
+    showToast: mockShowToast,
+    removeToast: vi.fn(),
+  }),
+}));
+
+// Mock the api client's apiPatch function
+const mockApiPatch = vi.fn<(endpoint: string, data: unknown) => Promise<unknown>>();
+vi.mock("@/lib/api/client", () => ({
+  apiPatch: (endpoint: string, data: unknown): Promise<unknown> => mockApiPatch(endpoint, data),
+}));
+
+// Store drag event handlers for testing
+type DragEventHandler = (event: {
+  active: { id: string };
+  over: { id: string } | null;
+}) => Promise<void> | void;
+let capturedOnDragEnd: DragEventHandler | null = null;
+
 // Mock @dnd-kit modules
 vi.mock("@dnd-kit/core", async () => {
   const actual = await vi.importActual("@dnd-kit/core");
   return {
     ...actual,
-    DndContext: ({ children }: { children: React.ReactNode }): React.JSX.Element => (
-      <div data-testid="dnd-context">{children}</div>
-    ),
+    DndContext: ({
+      children,
+      onDragEnd,
+    }: {
+      children: React.ReactNode;
+      onDragEnd?: DragEventHandler;
+    }): React.JSX.Element => {
+      // Capture the event handler for testing
+      capturedOnDragEnd = onDragEnd ?? null;
+      return <div data-testid="dnd-context">{children}</div>;
+    },
   };
 });
 
@@ -114,9 +145,14 @@ describe("KanbanBoard", (): void => {
 
   beforeEach((): void => {
     vi.clearAllMocks();
+    mockShowToast.mockClear();
+    mockApiPatch.mockClear();
+    // Default: apiPatch succeeds
+    mockApiPatch.mockResolvedValue({});
+    // Also set up fetch mock for other tests that may use it
     (global.fetch as ReturnType<typeof vi.fn>).mockResolvedValue({
       ok: true,
-      json: () => ({}),
+      json: (): Promise<object> => Promise.resolve({}),
     } as Response);
   });
 
@@ -273,6 +309,191 @@ describe("KanbanBoard", (): void => {
     });
   });
 
+  describe("Optimistic Updates and Rollback", (): void => {
+    it("should apply optimistic update immediately on drag", async (): Promise<void> => {
+      // apiPatch is already mocked to succeed in beforeEach
+      render(<KanbanBoard tasks={mockTasks} onStatusChange={mockOnStatusChange} />);
+
+      // Verify initial state - task-1 is in NOT_STARTED column
+      const todoColumn = screen.getByTestId("column-NOT_STARTED");
+      expect(within(todoColumn).getByText("Design homepage")).toBeInTheDocument();
+
+      // Trigger drag end event to move task-1 to IN_PROGRESS and wait for completion
+      await act(async () => {
+        if (capturedOnDragEnd) {
+          const result = capturedOnDragEnd({
+            active: { id: "task-1" },
+            over: { id: TaskStatus.IN_PROGRESS },
+          });
+          if (result instanceof Promise) {
+            await result;
+          }
+        }
+      });
+
+      // After the drag completes, task should be in the new column (optimistic update persisted)
+      const inProgressColumn = screen.getByTestId("column-IN_PROGRESS");
+      expect(within(inProgressColumn).getByText("Design homepage")).toBeInTheDocument();
+
+      // Verify the task is NOT in the original column anymore
+      const todoColumnAfter = screen.getByTestId("column-NOT_STARTED");
+      expect(within(todoColumnAfter).queryByText("Design homepage")).not.toBeInTheDocument();
+    });
+
+    it("should persist update when API call succeeds", async (): Promise<void> => {
+      // apiPatch is already mocked to succeed in beforeEach
+      render(<KanbanBoard tasks={mockTasks} onStatusChange={mockOnStatusChange} />);
+
+      // Trigger drag end event
+      await act(async () => {
+        if (capturedOnDragEnd) {
+          const result = capturedOnDragEnd({
+            active: { id: "task-1" },
+            over: { id: TaskStatus.IN_PROGRESS },
+          });
+          if (result instanceof Promise) {
+            await result;
+          }
+        }
+      });
+
+      // Wait for API call to complete
+      await waitFor(() => {
+        expect(mockApiPatch).toHaveBeenCalledWith("/api/tasks/task-1", {
+          status: TaskStatus.IN_PROGRESS,
+        });
+      });
+
+      // Verify task is in the new column after API success
+      const inProgressColumn = screen.getByTestId("column-IN_PROGRESS");
+      expect(within(inProgressColumn).getByText("Design homepage")).toBeInTheDocument();
+
+      // Verify callback was called
+      expect(mockOnStatusChange).toHaveBeenCalledWith("task-1", TaskStatus.IN_PROGRESS);
+    });
+
+    it("should rollback to original position when API call fails", async (): Promise<void> => {
+      const consoleErrorSpy = vi.spyOn(console, "error").mockImplementation(() => {});
+
+      // Mock API failure
+      mockApiPatch.mockRejectedValueOnce(new Error("Network error"));
+
+      render(<KanbanBoard tasks={mockTasks} onStatusChange={mockOnStatusChange} />);
+
+      // Verify initial state - task-1 is in NOT_STARTED column
+      const todoColumnBefore = screen.getByTestId("column-NOT_STARTED");
+      expect(within(todoColumnBefore).getByText("Design homepage")).toBeInTheDocument();
+
+      // Trigger drag end event
+      await act(async () => {
+        if (capturedOnDragEnd) {
+          const result = capturedOnDragEnd({
+            active: { id: "task-1" },
+            over: { id: TaskStatus.IN_PROGRESS },
+          });
+          if (result instanceof Promise) {
+            await result;
+          }
+        }
+      });
+
+      // Wait for rollback to occur
+      await waitFor(() => {
+        // After rollback, task should be back in original column
+        const todoColumnAfter = screen.getByTestId("column-NOT_STARTED");
+        expect(within(todoColumnAfter).getByText("Design homepage")).toBeInTheDocument();
+      });
+
+      // Verify callback was NOT called due to error
+      expect(mockOnStatusChange).not.toHaveBeenCalled();
+
+      consoleErrorSpy.mockRestore();
+    });
+
+    it("should show error toast notification when API call fails", async (): Promise<void> => {
+      const consoleErrorSpy = vi.spyOn(console, "error").mockImplementation(() => {});
+
+      // Mock API failure
+      mockApiPatch.mockRejectedValueOnce(new Error("Server error"));
+
+      render(<KanbanBoard tasks={mockTasks} onStatusChange={mockOnStatusChange} />);
+
+      // Trigger drag end event
+      await act(async () => {
+        if (capturedOnDragEnd) {
+          const result = capturedOnDragEnd({
+            active: { id: "task-1" },
+            over: { id: TaskStatus.IN_PROGRESS },
+          });
+          if (result instanceof Promise) {
+            await result;
+          }
+        }
+      });
+
+      // Wait for error handling
+      await waitFor(() => {
+        // Verify showToast was called with error message
+        expect(mockShowToast).toHaveBeenCalledWith(
+          "Unable to update task status. Please try again.",
+          "error"
+        );
+      });
+
+      consoleErrorSpy.mockRestore();
+    });
+
+    it("should not make API call when dropping on same column", async (): Promise<void> => {
+      const fetchMock = global.fetch as ReturnType<typeof vi.fn>;
+
+      render(<KanbanBoard tasks={mockTasks} onStatusChange={mockOnStatusChange} />);
+
+      // Trigger drag end event with same status
+      await act(async () => {
+        if (capturedOnDragEnd) {
+          const result = capturedOnDragEnd({
+            active: { id: "task-1" },
+            over: { id: TaskStatus.NOT_STARTED }, // Same as task's current status
+          });
+          if (result instanceof Promise) {
+            await result;
+          }
+        }
+      });
+
+      // No API call should be made
+      expect(fetchMock).not.toHaveBeenCalled();
+      // No callback should be called
+      expect(mockOnStatusChange).not.toHaveBeenCalled();
+    });
+
+    it("should handle drag cancel (no drop target)", async (): Promise<void> => {
+      const fetchMock = global.fetch as ReturnType<typeof vi.fn>;
+
+      render(<KanbanBoard tasks={mockTasks} onStatusChange={mockOnStatusChange} />);
+
+      // Trigger drag end event with no drop target
+      await act(async () => {
+        if (capturedOnDragEnd) {
+          const result = capturedOnDragEnd({
+            active: { id: "task-1" },
+            over: null,
+          });
+          if (result instanceof Promise) {
+            await result;
+          }
+        }
+      });
+
+      // Task should remain in original column
+      const todoColumn = screen.getByTestId("column-NOT_STARTED");
+      expect(within(todoColumn).getByText("Design homepage")).toBeInTheDocument();
+
+      // No API call should be made
+      expect(fetchMock).not.toHaveBeenCalled();
+    });
+  });
+
   describe("Accessibility", (): void => {
     it("should have proper heading hierarchy", (): void => {
       render(<KanbanBoard tasks={mockTasks} onStatusChange={mockOnStatusChange} />);
diff --git a/apps/web/src/components/kanban/KanbanBoard.tsx b/apps/web/src/components/kanban/KanbanBoard.tsx
index bf721d9..1bcd4e1 100644
--- a/apps/web/src/components/kanban/KanbanBoard.tsx
+++ b/apps/web/src/components/kanban/KanbanBoard.tsx
@@ -1,7 +1,7 @@
 /* eslint-disable @typescript-eslint/no-unnecessary-condition */
 "use client";
 
-import React, { useState, useMemo } from "react";
+import React, { useState, useMemo, useEffect, useCallback } from "react";
 import type { Task } from "@mosaic/shared";
 import { TaskStatus } from "@mosaic/shared";
 import type { DragEndEvent, DragStartEvent } from "@dnd-kit/core";
@@ -9,6 +9,7 @@ import { DndContext, DragOverlay, PointerSensor, useSensor, useSensors } from "@
 import { KanbanColumn } from "./KanbanColumn";
 import { TaskCard } from "./TaskCard";
 import { apiPatch } from "@/lib/api/client";
+import { useToast } from "@mosaic/ui";
 
 interface KanbanBoardProps {
   tasks: Task[];
@@ -34,9 +35,18 @@ const columns = [
  * - Drag-and-drop using @dnd-kit/core
  * - Task cards with title, priority badge, assignee avatar
  * - PATCH /api/tasks/:id on status change
+ * - Optimistic updates with rollback on error
  */
 export function KanbanBoard({ tasks, onStatusChange }: KanbanBoardProps): React.ReactElement {
   const [activeTaskId, setActiveTaskId] = useState<string | null>(null);
+  // Local task state for optimistic updates
+  const [localTasks, setLocalTasks] = useState<Task[]>(tasks || []);
+  const { showToast } = useToast();
+
+  // Sync local state with props when tasks prop changes
+  useEffect(() => {
+    setLocalTasks(tasks || []);
+  }, [tasks]);
 
   const sensors = useSensors(
     useSensor(PointerSensor, {
@@ -46,7 +56,7 @@ export function KanbanBoard({ tasks, onStatusChange }: KanbanBoardProps): React.
     })
   );
 
-  // Group tasks by status
+  // Group tasks by status (using local state for optimistic updates)
   const tasksByStatus = useMemo(() => {
     const grouped: Record<TaskStatus, Task[]> = {
       [TaskStatus.NOT_STARTED]: [],
@@ -56,7 +66,7 @@ export function KanbanBoard({ tasks, onStatusChange }: KanbanBoardProps): React.
       [TaskStatus.ARCHIVED]: [],
     };
 
-    (tasks || []).forEach((task) => {
+    localTasks.forEach((task) => {
       if (grouped[task.status]) {
         grouped[task.status].push(task);
       }
@@ -68,17 +78,29 @@ export function KanbanBoard({ tasks, onStatusChange }: KanbanBoardProps): React.
     });
 
     return grouped;
-  }, [tasks]);
+  }, [localTasks]);
 
   const activeTask = useMemo(
-    () => (tasks || []).find((task) => task.id === activeTaskId),
-    [tasks, activeTaskId]
+    () => localTasks.find((task) => task.id === activeTaskId),
+    [localTasks, activeTaskId]
   );
 
   function handleDragStart(event: DragStartEvent): void {
     setActiveTaskId(event.active.id as string);
   }
 
+  // Apply optimistic update to local state
+  const applyOptimisticUpdate = useCallback((taskId: string, newStatus: TaskStatus): void => {
+    setLocalTasks((prevTasks) =>
+      prevTasks.map((task) => (task.id === taskId ? { ...task, status: newStatus } : task))
+    );
+  }, []);
+
+  // Rollback to previous state
+  const rollbackUpdate = useCallback((previousTasks: Task[]): void => {
+    setLocalTasks(previousTasks);
+  }, []);
+
   async function handleDragEnd(event: DragEndEvent): Promise<void> {
     const { active, over } = event;
 
@@ -91,9 +113,15 @@ export function KanbanBoard({ tasks, onStatusChange }: KanbanBoardProps): React.
     const newStatus = over.id as TaskStatus;
 
     // Find the task and check if status actually changed
-    const task = (tasks || []).find((t) => t.id === taskId);
+    const task = localTasks.find((t) => t.id === taskId);
 
     if (task && task.status !== newStatus) {
+      // Store previous state for potential rollback
+      const previousTasks = [...localTasks];
+
+      // Apply optimistic update immediately
+      applyOptimisticUpdate(taskId, newStatus);
+
       // Call PATCH /api/tasks/:id to update status (using API client for CSRF protection)
       try {
         await apiPatch(`/api/tasks/${taskId}`, { status: newStatus });
@@ -103,8 +131,12 @@ export function KanbanBoard({ tasks, onStatusChange }: KanbanBoardProps): React.
           onStatusChange(taskId, newStatus);
         }
       } catch (error) {
+        // Rollback to previous state on error
+        rollbackUpdate(previousTasks);
+
+        // Show error notification
+        showToast("Unable to update task status. Please try again.", "error");
         console.error("Error updating task status:", error);
-        // TODO: Show error toast/notification
       }
     }