diff --git a/frontend/app/components/TaskList.tsx b/frontend/app/components/TaskList.tsx
index 4c96c0b..7a73a94 100644
--- a/frontend/app/components/TaskList.tsx
+++ b/frontend/app/components/TaskList.tsx
@@ -6,7 +6,6 @@ import {
   InputLabel,
   Select,
   MenuItem,
-  Chip,
   Stack,
   Paper,
   Table,
@@ -46,7 +45,7 @@ interface TaskListProps {
 }
 
 export function TaskList({ className, initialTasks }: TaskListProps) {
-  const { tasks, loading, error, deleteTask } = useTasks({
+  const { tasks, loading, error, updateTask, deleteTask } = useTasks({
     autoFetch: !initialTasks,
     initialData: initialTasks,
   })
@@ -217,6 +216,13 @@ export function TaskList({ className, initialTasks }: TaskListProps) {
     }
   }
 
+  const handleStatusChange = async (taskId: string, newStatus: TaskStatus) => {
+    const result = await updateTask(taskId, { status: newStatus })
+    if (!result) {
+      console.error('Failed to update task status')
+    }
+  }
+
   const isAllSelected =
     filteredAndSortedTasks.length > 0 &&
     filteredAndSortedTasks.every(task => selectedTaskIds.has(task.id))
@@ -447,12 +453,139 @@ export function TaskList({ className, initialTasks }: TaskListProps) {
                     </TableCell>
                   )}
                   <TableCell>
-                    <Chip
-                      label={task.status}
-                      color={getStatusColor(task.status)}
+                    <Select
+                      value={task.status}
+                      onChange={e =>
+                        handleStatusChange(
+                          task.id,
+                          e.target.value as TaskStatus
+                        )
+                      }
                       size="small"
                       variant="outlined"
-                    />
+                      MenuProps={{
+                        PaperProps: {
+                          sx: {
+                            padding: '4px',
+                            minWidth: '100px',
+                            '& .MuiList-root': {
+                              padding: 0,
+                            },
+                          },
+                        },
+                      }}
+                      sx={{
+                        minWidth: 90,
+                        height: '24px',
+                        borderRadius: '16px',
+                        backgroundColor:
+                          getStatusColor(task.status) === 'primary'
+                            ? 'primary.main'
+                            : getStatusColor(task.status) === 'success'
+                              ? 'success.main'
+                              : 'action.disabled',
+                        color:
+                          getStatusColor(task.status) === 'default'
+                            ? 'text.primary'
+                            : 'white',
+                        fontSize: '0.75rem',
+                        '& .MuiOutlinedInput-notchedOutline': {
+                          border: 'none',
+                        },
+                        '&:hover .MuiOutlinedInput-notchedOutline': {
+                          border: 'none',
+                        },
+                        '&.Mui-focused .MuiOutlinedInput-notchedOutline': {
+                          border: 'none',
+                        },
+                        '& .MuiSelect-select': {
+                          padding: '2px 12px 2px 12px',
+                          paddingRight: '24px !important',
+                          display: 'flex',
+                          alignItems: 'center',
+                          height: '20px',
+                          lineHeight: '20px',
+                        },
+                        '& .MuiSelect-icon': {
+                          right: '4px',
+                          color:
+                            getStatusColor(task.status) === 'default'
+                              ? 'text.primary'
+                              : 'white',
+                          fontSize: '1rem',
+                        },
+                      }}
+                    >
+                      <MenuItem
+                        value={TaskStatus.Todo}
+                        sx={{
+                          backgroundColor: 'primary.main',
+                          color: 'white',
+                          margin: '2px 4px',
+                          borderRadius: '12px',
+                          fontSize: '0.75rem',
+                          minHeight: '24px',
+                          padding: '2px 8px',
+                          '&:hover': {
+                            backgroundColor: 'primary.dark',
+                          },
+                          '&.Mui-selected': {
+                            backgroundColor: 'primary.main',
+                            '&:hover': {
+                              backgroundColor: 'primary.dark',
+                            },
+                          },
+                        }}
+                      >
+                        Todo
+                      </MenuItem>
+                      <MenuItem
+                        value={TaskStatus.Done}
+                        sx={{
+                          backgroundColor: 'success.main',
+                          color: 'white',
+                          margin: '2px 4px',
+                          borderRadius: '12px',
+                          fontSize: '0.75rem',
+                          minHeight: '24px',
+                          padding: '2px 8px',
+                          '&:hover': {
+                            backgroundColor: 'success.dark',
+                          },
+                          '&.Mui-selected': {
+                            backgroundColor: 'success.main',
+                            '&:hover': {
+                              backgroundColor: 'success.dark',
+                            },
+                          },
+                        }}
+                      >
+                        Done
+                      </MenuItem>
+                      <MenuItem
+                        value={TaskStatus.Backlog}
+                        sx={{
+                          backgroundColor: 'action.disabled',
+                          color: 'text.primary',
+                          margin: '2px 4px',
+                          borderRadius: '12px',
+                          fontSize: '0.75rem',
+                          minHeight: '24px',
+                          padding: '2px 8px',
+                          '&:hover': {
+                            backgroundColor: 'action.hover',
+                          },
+                          '&.Mui-selected': {
+                            backgroundColor: 'action.disabled',
+                            '&:hover': {
+                              backgroundColor: 'action.hover',
+                            },
+                          },
+                        }}
+                      >
+                        Backlog
+                      </MenuItem>
+                    </Select>
                   </TableCell>
                   <TableCell>
                     <Tooltip
diff --git a/frontend/app/hooks/useTasks.ts b/frontend/app/hooks/useTasks.ts
index 3b91795..8dcabb4 100644
--- a/frontend/app/hooks/useTasks.ts
+++ b/frontend/app/hooks/useTasks.ts
@@ -1,5 +1,10 @@
 import { useState, useCallback, useEffect } from 'react'
-import type { Task, CreateTaskRequest, ApiError } from '~/types/task'
+import type {
+  Task,
+  CreateTaskRequest,
+  UpdateTaskRequest,
+  ApiError,
+} from '~/types/task'
 import { TaskStatus } from '~/types/task'
 import { apiClient } from '~/services/api'
 
@@ -13,6 +18,7 @@ interface UseTasksState {
 interface UseTasksActions {
   fetchTasks: () => Promise<void>
   createTask: (data: CreateTaskRequest) => Promise<Task | null>
+  updateTask: (id: string, data: UpdateTaskRequest) => Promise<Task | null>
   deleteTask: (id: string) => Promise<boolean>
   refreshTasks: () => Promise<void>
   clearError: () => void
@@ -91,6 +97,30 @@ export function useTasks(
     []
   )
 
+  const updateTask = useCallback(
+    async (id: string, data: UpdateTaskRequest): Promise<Task | null> => {
+      try {
+        const updatedTask = await apiClient.updateTask(id, data)
+
+        // Update the task in the local state immediately
+        setState(prev => ({
+          ...prev,
+          tasks: prev.tasks.map(task => (task.id === id ? updatedTask : task)),
+        }))
+
+        return updatedTask
+      } catch (error) {
+        const apiError = error as ApiError
+        setState(prev => ({
+          ...prev,
+          error: apiError.message,
+        }))
+        return null
+      }
+    },
+    []
+  )
+
   const deleteTask = useCallback(async (id: string): Promise<boolean> => {
     try {
       await apiClient.deleteTask(id)
@@ -176,6 +206,7 @@ export function useTasks(
     ...state,
     fetchTasks,
     createTask,
+    updateTask,
     deleteTask,
     refreshTasks,
     clearError,