diff --git a/docs/design-system-update-instructions.md b/docs/design-system-update-instructions.md
new file mode 100644
index 00000000..ee2a2153
--- /dev/null
+++ b/docs/design-system-update-instructions.md
@@ -0,0 +1,122 @@
+# Design System Update Instructions
+
+These changes are needed in `@cameleer/design-system` to replace workarounds in cameleer3-server's UI.
+
+## 1. Sidebar: Add `onNavigate` callback prop (HIGH PRIORITY)
+
+### Problem
+
+The Sidebar component navigates internally using React Router `` components with hardcoded paths (`/apps/:appId`, `/apps/:appId/:routeId`, `/agents/:appId/:instanceId`). The consuming app (cameleer3-server) now uses a different URL structure (`/exchanges/:appId`, `/runtime/:appId/:instanceId`) and needs to intercept and re-route sidebar navigation.
+
+The current workaround wraps Sidebar in a `