diff --git a/src/components/EntityGrid.vue b/src/components/EntityGrid.vue
index 2aa7bd0d0a..de7d6a126d 100644
--- a/src/components/EntityGrid.vue
+++ b/src/components/EntityGrid.vue
@@ -13,7 +13,7 @@ projects, and special entities with selection. * * @author Matthew Raymer */
       @keydown.enter="performSearch"
     />
     <div
-      v-show="isSearching"
+      v-show="isSearching && searchTerm"
       class="border-y border-slate-400 ps-2 py-1.5 text-center text-slate-400"
     >
       <font-awesome
@@ -47,7 +47,7 @@ projects, and special entities with selection. * * @author Matthew Raymer */
     <template v-if="entityType === 'people'">
       <!-- "You" entity -->
       <SpecialEntityCard
-        v-if="showYouEntity"
+        v-if="showYouEntity && !searchTerm.trim()"
         entity-type="you"
         label="You"
         icon="hand"
@@ -61,7 +61,7 @@ projects, and special entities with selection. * * @author Matthew Raymer */
 
       <!-- "Unnamed" entity -->
       <SpecialEntityCard
-        v-if="showUnnamedEntity"
+        v-if="showUnnamedEntity && !searchTerm.trim()"
         entity-type="unnamed"
         :label="unnamedEntityName"
         icon="circle-question"
@@ -79,16 +79,60 @@ projects, and special entities with selection. * * @author Matthew Raymer */
 
     <!-- Entity cards (people or projects) -->
     <template v-if="entityType === 'people'">
-      <PersonCard
-        v-for="person in displayedEntities as Contact[]"
-        :key="person.did"
-        :person="person"
-        :conflicted="isPersonConflicted(person.did)"
-        :show-time-icon="true"
-        :notify="notify"
-        :conflict-context="conflictContext"
-        @person-selected="handlePersonSelected"
-      />
+      <!-- When showing contacts without search: split into recent and alphabetical -->
+      <template v-if="!searchTerm.trim()">
+        <!-- Recently Added Section -->
+        <template v-if="recentContacts.length > 0">
+          <li
+            class="text-xs font-semibold text-slate-500 uppercase pt-5 pb-1.5 px-2 border-b border-slate-300"
+          >
+            Recently Added
+          </li>
+          <PersonCard
+            v-for="person in recentContacts"
+            :key="person.did"
+            :person="person"
+            :conflicted="isPersonConflicted(person.did)"
+            :show-time-icon="true"
+            :notify="notify"
+            :conflict-context="conflictContext"
+            @person-selected="handlePersonSelected"
+          />
+        </template>
+
+        <!-- Alphabetical Section -->
+        <template v-if="alphabeticalContacts.length > 0">
+          <li
+            class="text-xs font-semibold text-slate-500 uppercase pt-5 pb-1.5 px-2 border-b border-slate-300"
+          >
+            Everyone Else
+          </li>
+          <PersonCard
+            v-for="person in alphabeticalContacts"
+            :key="person.did"
+            :person="person"
+            :conflicted="isPersonConflicted(person.did)"
+            :show-time-icon="true"
+            :notify="notify"
+            :conflict-context="conflictContext"
+            @person-selected="handlePersonSelected"
+          />
+        </template>
+      </template>
+
+      <!-- When searching: show filtered results normally -->
+      <template v-else>
+        <PersonCard
+          v-for="person in displayedEntities as Contact[]"
+          :key="person.did"
+          :person="person"
+          :conflicted="isPersonConflicted(person.did)"
+          :show-time-icon="true"
+          :notify="notify"
+          :conflict-context="conflictContext"
+          @person-selected="handlePersonSelected"
+        />
+      </template>
     </template>
 
     <template v-else-if="entityType === 'projects'">
@@ -257,6 +301,35 @@ export default class EntityGrid extends Vue {
     return this.entities.slice(0, maxDisplay);
   }
 
+  /**
+   * Get the 3 most recently added contacts (when showing contacts and not searching)
+   */
+  get recentContacts(): Contact[] {
+    if (this.entityType !== "people" || this.searchTerm.trim()) {
+      return [];
+    }
+    // Entities are already sorted by date added (newest first)
+    return (this.entities as Contact[]).slice(0, 3);
+  }
+
+  /**
+   * Get the remaining contacts sorted alphabetically (when showing contacts and not searching)
+   */
+  get alphabeticalContacts(): Contact[] {
+    if (this.entityType !== "people" || this.searchTerm.trim()) {
+      return [];
+    }
+    // Skip the first 3 (recent contacts) and sort the rest alphabetically
+    // Create a copy to avoid mutating the original array
+    const remaining = (this.entities as Contact[]).slice(3);
+    return [...remaining].sort((a: Contact, b: Contact) => {
+      // Sort alphabetically by name, falling back to DID if name is missing
+      const nameA = (a.name || a.did).toLowerCase();
+      const nameB = (b.name || b.did).toLowerCase();
+      return nameA.localeCompare(nameB);
+    });
+  }
+
   /**
    * Computed empty state message based on entity type
    */