diff --git a/init.lua b/init.lua
index be65c309..6224cf87 100644
--- a/init.lua
+++ b/init.lua
@@ -1266,7 +1266,7 @@ end
   --    This is the easiest way to modularize your config.
   --
   --  Uncomment the following line and add your plugins to `lua/custom/plugins/*.lua` to get going.
-  { import = 'custom.plugins' },
+  { import = 'custom.plugins' }
   --
   -- For additional information with loading, sourcing and examples see `:help lazy.nvim-🔌-plugin-spec`
   -- Or use telescope!
diff --git a/lua/custom/plugins/init.lua b/lua/custom/plugins/init.lua
index a5f573a7..377c177c 100644
--- a/lua/custom/plugins/init.lua
+++ b/lua/custom/plugins/init.lua
@@ -7,4 +7,14 @@ return {
   { 'folke/trouble.nvim', event = 'VimEnter', dependencies = { 'nvim-tree/nvim-web-devicons' }, config = function()
     require('trouble').setup {}
   end },
+
+  -- Mode Manager Plugin (local)
+  {
+    dir = vim.fn.stdpath('config') .. '/lua/custom/plugins/mode_manager',
+    name = 'mode_manager',
+    event = 'VimEnter',
+    config = function()
+      require('custom.plugins.mode_manager').setup()
+    end,
+  },
 }
diff --git a/lua/custom/plugins/mode_manager.lua b/lua/custom/plugins/mode_manager/init.lua
similarity index 97%
rename from lua/custom/plugins/mode_manager.lua
rename to lua/custom/plugins/mode_manager/init.lua
index 50a586be..c25dd8bb 100644
--- a/lua/custom/plugins/mode_manager.lua
+++ b/lua/custom/plugins/mode_manager/init.lua
@@ -94,15 +94,12 @@ end
 local function restore_context(mode)
   local ctx = M.state.contexts[mode]
   if ctx then
-    -- Restore window view
     if ctx.window then
       vim.fn.winrestview(ctx.window)
     end
-    -- Restore cursor position
     if ctx.cursor then
       vim.api.nvim_win_set_cursor(0, ctx.cursor)
     end
-    -- Restore folding
     if ctx.folding then
       vim.wo.foldenable = true
       vim.wo.foldmethod = ctx.folding
@@ -207,7 +204,7 @@ function M.save_state()
       settings = M.state.settings,
       contexts = M.state.contexts,
       last_updated = os.time(),
-      version = '1.0' -- Added versioning
+      version = '1.0'
     }
     file:write(vim.fn.json_encode(persist_state))
     file:close()
@@ -224,13 +221,11 @@ function M.load_state()
     if content and content ~= '' then
       local decoded = vim.fn.json_decode(content)
       if decoded then
-        -- Restore state with validation
         if decoded.version == '1.0' then
           M.state.current_mode = decoded.current_mode
           M.state.settings = decoded.settings or {act = {}, plan = {}}
           M.state.contexts = decoded.contexts or {act = {}, plan = {}}
         else
-          -- Handle older versions or invalid state
           M.state.current_mode = decoded.current_mode or 'act'
           M.state.settings = {act = {}, plan = {}}
           M.state.contexts = {act = {}, plan = {}}
@@ -250,6 +245,16 @@ function M.load_state()
   end
 end
 
+-- Get mode history
+function M.get_history()
+  return M.state.history
+end
+
+-- Clear mode history
+function M.clear_history()
+  M.state.history = {}
+end
+
 -- Initialize the plugin
 function M.setup()
   -- Load saved state
@@ -272,14 +277,4 @@ function M.setup()
   end)
 end
 
--- Get mode history
-function M.get_history()
-  return M.state.history
-end
-
--- Clear mode history
-function M.clear_history()
-  M.state.history = {}
-end
-
 return M
\ No newline at end of file
diff --git a/memory-bank/activeContext.md b/memory-bank/activeContext.md
index 947b9a3b..3a444786 100644
--- a/memory-bank/activeContext.md
+++ b/memory-bank/activeContext.md
@@ -1,27 +1,32 @@
 # Current Session Context
-*Last Updated: 2025-02-17 21:57*
+*Last Updated: 2025-02-18 18:31*
 
 ## Current State
-- Rolled back to v0.1.0 tag (commit 57f551e)
-- Backup branch created for pre-rollback state
+- Working on mode_manager plugin integration
+- Focusing on proper plugin specification and initialization
+- Implementing enhanced mode state management system
 
 ## Recent Changes
 - Created backup branch of pre-rollback state
 - Rolled back codebase to v0.1.0 tag
 - Previous state preserved in backup branch
+- Started mode_manager plugin implementation
 
 ## Active Decisions
 1. Using Memory Bank for configuration documentation
 2. Following Kickstart.nvim's modular approach
 3. Implementing comprehensive LSP integration
 4. Using mode-based workflow with persistent Plan/Act toggle
+5. Implementing enhanced mode state management system
 
 ## Current Focus
-- Verifying system stability after rollback
-- Ensuring core functionality remains intact
-- Planning next steps based on v0.1.0 state
+- Implementing mode_manager plugin properly
+- Resolving plugin specification issues
+- Setting up proper initialization hooks
+- Integrating with custom_statusline
 
 ## Open Questions
 - What were the key changes between v0.1.0 and the rolled back state?
 - Which features need to be reimplemented or reconsidered?
-- How to prevent future need for rollbacks?
\ No newline at end of file
+- How to prevent future need for rollbacks?
+- How to best structure the mode_manager plugin initialization?
\ No newline at end of file
diff --git a/memory-bank/progress.md b/memory-bank/progress.md
index de80b9c3..d0c7b302 100644
--- a/memory-bank/progress.md
+++ b/memory-bank/progress.md
@@ -1,63 +1,41 @@
-# Project Progress
+# Progress Update
 
-## Completed Work
-- Initial Memory Bank setup
-- Basic Plan/Act mode system implementation
-- Mode persistence with JSON storage
-- Simple event callback system
-- Status line integration
-- Basic mode toggling (`<leader>tm`)
+## Current Status
+Working on mode_manager plugin implementation with enhanced state management.
 
-## Recent Changes
-- Rolled back to v0.1.0 (commit 57f551e)
-- Created backup branch of pre-rollback state
+## Completed Tasks
+1. System rollback to v0.1.0
+   - Created backup branch
+   - Successfully rolled back to stable version
+   - Preserved previous state
+
+2. Architecture Planning
+   - Defined enhanced mode state management system
+   - Documented implementation phases
+   - Established integration patterns
 
 ## In Progress
-- Verifying system stability post-rollback
-- Reassessing implementation priorities
-- Evaluating core functionality
+1. Mode Manager Plugin Implementation:
+   - Converting mode_manager.lua into proper plugin structure
+   - Setting up initialization hooks
+   - Implementing state persistence layer
+   - Adding event system foundations
+
+2. Integration Work:
+   - Configuring plugin specification in init.lua
+   - Setting up custom_statusline integration
+   - Implementing mode-aware functionality
 
 ## Next Steps
+1. Complete core state management implementation
+2. Add event system with hooks and queuing
+3. Implement persistence layer with versioning
+4. Set up plugin and UI integration components
 
-### Phase 1: Post-Rollback Stabilization
-- [ ] Verify core functionality
-- [ ] Document differences from rolled back state
-- [ ] Reassess implementation priorities
-- [ ] Review backup branch for salvageable improvements
-
-### Phase 2: Core State Management
-- [ ] Implement mode-specific settings store
-- [ ] Add mode context preservation
-- [ ] Create mode initialization hooks
-- [ ] Add state validation system
-- [ ] Implement error recovery mechanisms
-
-### Phase 3: Event System Enhancement
-- [ ] Add pre-mode-change hooks
-- [ ] Implement post-mode-change hooks
-- [ ] Create event queueing system
-- [ ] Add mode-specific event handlers
-- [ ] Implement async event processing
-
-### Phase 4: Integration Features
-- [ ] Add mode-specific colorschemes
-- [ ] Implement mode-specific keymaps
-- [ ] Create mode-specific status line content
-- [ ] Add mode-specific buffer handling
-- [ ] Implement window layout persistence
-
-## Known Issues
-- Current state persistence is basic
-- No validation of stored state
-- Limited error recovery options
-- No mode-specific settings
-- Basic event handling system
-
-## Future Considerations
-- Custom mode creation system
-- Mode-specific plugin configurations
-- Advanced state synchronization
-- Mode templates and presets
-- Mode groups
-- Mode transitions animations
-- Mode-specific help system
\ No newline at end of file
+## Technical Requirements
+- Proper plugin specification format
+- Local plugin integration
+- Correct module initialization
+- State persistence mechanisms
+- Event handling system
+- Integration interfaces
\ No newline at end of file