diff --git a/README.md b/README.md
index c3ff50c..43d8ba9 100644
--- a/README.md
+++ b/README.md
@@ -9,7 +9,7 @@
 [![Version](https://img.shields.io/badge/Version-0.4.2-blue?style=flat-square)](https://github.com/greggh/claude-code.nvim/releases/tag/v0.4.2)
 [![Discussions](https://img.shields.io/github/discussions/greggh/claude-code.nvim?style=flat-square&logo=github)](https://github.com/greggh/claude-code.nvim/discussions)
 
-*A seamless integration between [Claude Code](https://github.com/anthropics/claude-code) AI assistant and Neovim*
+_A seamless integration between [Claude Code](https://github.com/anthropics/claude-code) AI assistant and Neovim_
 
 [Features](#features) •
 [Requirements](#requirements) •
@@ -93,10 +93,16 @@ require("claude-code").setup({
   -- Terminal window settings
   window = {
     split_ratio = 0.3,      -- Percentage of screen for the terminal window (height for horizontal, width for vertical splits)
-    position = "botright",  -- Position of the window: "botright", "topleft", "vertical", "rightbelow vsplit", etc.
+    position = "botright",  -- Position of the window: "botright", "topleft", "vertical", "rightbelow vsplit", "floating" etc.
     enter_insert = true,    -- Whether to enter insert mode when opening Claude Code
     hide_numbers = true,    -- Hide line numbers in the terminal window
     hide_signcolumn = true, -- Hide the sign column in the terminal window
+    -- Floating window configuration (used when position = "floating")
+    floating = {
+      width = 0.8,          -- Percentage of screen width for the floating window
+      height = 0.8,         -- Percentage of screen height for the floating window
+      border = "rounded",   -- Border style: "none", "single", "double", "rounded", "solid", "shadow"
+    },
   },
   -- File refresh settings
   refresh = {
diff --git a/lua/claude-code/config.lua b/lua/claude-code/config.lua
index e1c99a8..12c2db0 100644
--- a/lua/claude-code/config.lua
+++ b/lua/claude-code/config.lua
@@ -9,11 +9,18 @@ local M = {}
 --- ClaudeCodeWindow class for window configuration
 -- @table ClaudeCodeWindow
 -- @field split_ratio number Percentage of screen for the terminal window (height for horizontal, width for vertical splits)
--- @field position string Position of the window: "botright", "topleft", "vertical", etc.
+-- @field position string Position of the window: "botright", "topleft", "vertical", "floating", etc.
 -- @field enter_insert boolean Whether to enter insert mode when opening Claude Code
 -- @field start_in_normal_mode boolean Whether to start in normal mode instead of insert mode when opening Claude Code
 -- @field hide_numbers boolean Hide line numbers in the terminal window
 -- @field hide_signcolumn boolean Hide the sign column in the terminal window
+-- @field floating ClaudeCodeFloating Floating window configuration (used when position = "floating")
+
+--- ClaudeCodeFloating class for floating window configuration
+-- @table ClaudeCodeFloating
+-- @field width number Percentage of screen width for the floating window (0.0 to 1.0)
+-- @field height number Percentage of screen height for the floating window (0.0 to 1.0)
+-- @field border string|table Border style for the floating window
 
 --- ClaudeCodeRefresh class for file refresh configuration
 -- @table ClaudeCodeRefresh
@@ -70,11 +77,17 @@ M.default_config = {
   window = {
     split_ratio = 0.3, -- Percentage of screen for the terminal window (height or width)
     height_ratio = 0.3, -- DEPRECATED: Use split_ratio instead
-    position = 'botright', -- Position of the window: "botright", "topleft", "vertical", etc.
+    position = 'botright', -- Position of the window: "botright", "topleft", "vertical", "floating", etc.
     enter_insert = true, -- Whether to enter insert mode when opening Claude Code
     start_in_normal_mode = false, -- Whether to start in normal mode instead of insert mode
     hide_numbers = true, -- Hide line numbers in the terminal window
     hide_signcolumn = true, -- Hide the sign column in the terminal window
+    -- Floating window configuration (used when position = "floating")
+    floating = {
+      width = 0.8, -- Percentage of screen width for the floating window
+      height = 0.8, -- Percentage of screen height for the floating window
+      border = 'rounded', -- Border style: 'none', 'single', 'double', 'rounded', 'solid', 'shadow'
+    },
   },
   -- File refresh settings
   refresh = {
@@ -158,6 +171,38 @@ local function validate_config(config)
     return false, 'window.hide_signcolumn must be a boolean'
   end
 
+  -- Validate floating window settings if they exist
+  if config.window.floating then
+    if type(config.window.floating) ~= 'table' then
+      return false, 'window.floating config must be a table'
+    end
+
+    if
+      type(config.window.floating.width) ~= 'number'
+      or config.window.floating.width <= 0
+      or config.window.floating.width > 1
+    then
+      return false, 'window.floating.width must be a number between 0 and 1'
+    end
+
+    if
+      type(config.window.floating.height) ~= 'number'
+      or config.window.floating.height <= 0
+      or config.window.floating.height > 1
+    then
+      return false, 'window.floating.height must be a number between 0 and 1'
+    end
+
+    if
+      not (
+        type(config.window.floating.border) == 'string'
+        or type(config.window.floating.border) == 'table'
+      )
+    then
+      return false, 'window.floating.border must be a string or table'
+    end
+  end
+
   -- Validate refresh settings
   if type(config.refresh) ~= 'table' then
     return false, 'refresh config must be a table'
@@ -292,6 +337,27 @@ function M.parse_config(user_config, silent)
     end
   end
 
+  -- Handle floating config migration
+  if user_config and user_config.floating then
+    -- Migrate old floating config to window.floating
+    if not user_config.window then
+      user_config.window = {}
+    end
+    if not user_config.window.floating then
+      user_config.window.floating = user_config.floating
+    end
+    -- Remove the old floating config to avoid conflicts
+    user_config.floating = nil
+
+    -- Show deprecation warning
+    if not silent then
+      vim.notify(
+        'Claude Code: The floating config has been moved to window.floating. Please update your configuration.',
+        vim.log.levels.WARN
+      )
+    end
+  end
+
   local config = vim.tbl_deep_extend('force', {}, M.default_config, user_config or {})
 
   local valid, err = validate_config(config)
diff --git a/lua/claude-code/floating.lua b/lua/claude-code/floating.lua
new file mode 100644
index 0000000..2e71d62
--- /dev/null
+++ b/lua/claude-code/floating.lua
@@ -0,0 +1,257 @@
+---@mod claude-code.floating Floating window management for claude-code.nvim
+---@brief [[
+--- This module provides floating window functionality for claude-code.nvim.
+--- It handles creating, toggling, and managing floating windows.
+---@brief ]]
+
+local M = {}
+
+--- Floating window state management
+-- @table ClaudeCodeFloating
+-- @field instances table Key-value store of git root to floating window state
+-- @field current_instance string|nil Current git root path for active instance
+M.floating = {
+  instances = {},
+  current_instance = nil,
+}
+
+--- Get the current git root or a fallback identifier
+--- @param git table The git module
+--- @return string identifier Git root path or fallback identifier
+local function get_instance_identifier(git)
+  local git_root = git.get_git_root()
+  if git_root then
+    return git_root
+  else
+    -- Fallback to current working directory if not in a git repo
+    return vim.fn.getcwd()
+  end
+end
+
+--- Calculate floating window dimensions and position
+--- @param config table Plugin configuration containing floating window settings
+--- @return table window_config Window configuration for nvim_open_win
+local function get_window_config(config)
+  local ui = vim.api.nvim_list_uis()[1]
+  local floating_config = config.window.floating
+  local width = math.floor(ui.width * floating_config.width)
+  local height = math.floor(ui.height * floating_config.height)
+
+  local row = math.floor((ui.height - height) / 2)
+  local col = math.floor((ui.width - width) / 2)
+
+  return {
+    relative = 'editor',
+    width = width,
+    height = height,
+    row = row,
+    col = col,
+    style = 'minimal',
+    border = floating_config.border,
+    title = ' Claude Code ',
+    title_pos = 'center',
+  }
+end
+
+--- Create or show floating window
+--- @param claude_code table The main plugin module
+--- @param config table The plugin configuration
+--- @param git table The git module
+--- @param existing_bufnr number|nil Buffer number of existing buffer to show in the floating window (optional)
+--- @return number bufnr Buffer number of the floating window
+--- @return number winid Window ID of the floating window
+local function create_floating_window(claude_code, config, git, existing_bufnr)
+  local win_config = get_window_config(config)
+
+  -- Create buffer if not provided
+  local bufnr = existing_bufnr
+  if not bufnr then
+    bufnr = vim.api.nvim_create_buf(false, true)
+  end
+
+  -- Create floating window
+  local winid = vim.api.nvim_open_win(bufnr, true, win_config)
+
+  -- Configure buffer and window options
+  vim.api.nvim_buf_set_option(bufnr, 'bufhidden', 'hide')
+
+  -- Use window config settings for floating windows
+  local hide_numbers = config.window.hide_numbers
+  local hide_signcolumn = config.window.hide_signcolumn
+
+  if hide_numbers then
+    vim.api.nvim_win_set_option(winid, 'number', false)
+    vim.api.nvim_win_set_option(winid, 'relativenumber', false)
+  end
+
+  if hide_signcolumn then
+    vim.api.nvim_win_set_option(winid, 'signcolumn', 'no')
+  end
+
+  return bufnr, winid
+end
+
+--- Toggle the Claude Code floating window
+--- @param claude_code table The main plugin module
+--- @param config table The plugin configuration
+--- @param git table The git module
+function M.toggle(claude_code, config, git)
+  -- Determine instance ID based on config
+  local instance_id
+  if config.git.multi_instance then
+    if config.git.use_git_root then
+      instance_id = get_instance_identifier(git)
+    else
+      instance_id = vim.fn.getcwd()
+    end
+  else
+    -- Use a fixed ID for single instance mode
+    instance_id = 'global'
+  end
+
+  M.floating.current_instance = instance_id
+
+  -- Check if this floating instance already exists
+  local floating_state = M.floating.instances[instance_id]
+
+  if floating_state then
+    local bufnr = floating_state.bufnr
+    local winid = floating_state.winid
+
+    -- Check if window is still valid and visible
+    if winid and vim.api.nvim_win_is_valid(winid) then
+      -- Window is visible, close it
+      vim.api.nvim_win_close(winid, true)
+      M.floating.instances[instance_id].winid = nil
+      return
+    elseif bufnr and vim.api.nvim_buf_is_valid(bufnr) then
+      -- Buffer exists but window is closed, recreate window
+      local new_bufnr, new_winid = create_floating_window(claude_code, config, git, bufnr)
+      M.floating.instances[instance_id].winid = new_winid
+
+      -- Force insert mode if configured
+      local enter_insert = config.window.enter_insert
+      local start_in_normal_mode = config.window.start_in_normal_mode
+      if enter_insert and not start_in_normal_mode then
+        vim.schedule(function()
+          vim.cmd 'startinsert'
+        end)
+      end
+      return
+    end
+  end
+
+  -- Create new floating window and terminal
+  local bufnr, winid = create_floating_window(claude_code, config, git)
+
+  -- Determine terminal command
+  local cmd = config.command
+  if config.git and config.git.use_git_root then
+    local git_root = git.get_git_root()
+    if git_root then
+      -- Use pushd/popd to change directory
+      local separator = config.shell.separator
+      local pushd_cmd = config.shell.pushd_cmd
+      local popd_cmd = config.shell.popd_cmd
+      cmd = pushd_cmd
+        .. ' '
+        .. git_root
+        .. ' '
+        .. separator
+        .. ' '
+        .. config.command
+        .. ' '
+        .. separator
+        .. ' '
+        .. popd_cmd
+    end
+  end
+
+  -- Start terminal in the floating window
+  vim.fn.termopen(cmd)
+
+  -- Create a unique buffer name
+  local buffer_name
+  if config.git.multi_instance then
+    buffer_name = 'claude-code-floating-' .. instance_id:gsub('[^%w%-_]', '-')
+  else
+    buffer_name = 'claude-code-floating'
+  end
+  vim.api.nvim_buf_set_name(bufnr, buffer_name)
+
+  -- Store the floating window state
+  M.floating.instances[instance_id] = {
+    bufnr = bufnr,
+    winid = winid,
+  }
+
+  -- Set up window closing autocommand
+  vim.api.nvim_create_autocmd({ 'WinClosed' }, {
+    buffer = bufnr,
+    callback = function()
+      if M.floating.instances[instance_id] then
+        M.floating.instances[instance_id].winid = nil
+      end
+    end,
+    once = true,
+  })
+
+  -- Automatically enter insert mode if configured
+  local enter_insert = config.window.enter_insert
+  local start_in_normal_mode = config.window.start_in_normal_mode
+  if enter_insert and not start_in_normal_mode then
+    vim.cmd 'startinsert'
+  end
+end
+
+--- Close floating window if open
+--- @param claude_code table The main plugin module
+--- @param config table The plugin configuration
+--- @param git table The git module
+function M.close(claude_code, config, git)
+  -- Determine instance ID based on config
+  local instance_id
+  if config.git.multi_instance then
+    if config.git.use_git_root then
+      instance_id = get_instance_identifier(git)
+    else
+      instance_id = vim.fn.getcwd()
+    end
+  else
+    instance_id = 'global'
+  end
+
+  local floating_state = M.floating.instances[instance_id]
+  if
+    floating_state
+    and floating_state.winid
+    and vim.api.nvim_win_is_valid(floating_state.winid)
+  then
+    vim.api.nvim_win_close(floating_state.winid, true)
+    M.floating.instances[instance_id].winid = nil
+  end
+end
+
+--- Check if floating window is currently open
+--- @param claude_code table The main plugin module
+--- @param config table The plugin configuration
+--- @param git table The git module
+--- @return boolean is_open Whether the floating window is currently open
+function M.is_open(claude_code, config, git)
+  -- Determine instance ID based on config
+  local instance_id
+  if config.git.multi_instance then
+    if config.git.use_git_root then
+      instance_id = get_instance_identifier(git)
+    else
+      instance_id = vim.fn.getcwd()
+    end
+  else
+    instance_id = 'global'
+  end
+
+  local floating_state = M.floating.instances[instance_id]
+  return floating_state and floating_state.winid and vim.api.nvim_win_is_valid(floating_state.winid)
+end
+
+return M
diff --git a/lua/claude-code/init.lua b/lua/claude-code/init.lua
index 56dee80..4fe45c5 100644
--- a/lua/claude-code/init.lua
+++ b/lua/claude-code/init.lua
@@ -22,6 +22,7 @@ local commands = require('claude-code.commands')
 local keymaps = require('claude-code.keymaps')
 local file_refresh = require('claude-code.file_refresh')
 local terminal = require('claude-code.terminal')
+local floating = require('claude-code.floating')
 local git = require('claude-code.git')
 local version = require('claude-code.version')
 
@@ -38,6 +39,10 @@ M.config = {}
 --- @type table
 M.claude_code = terminal.terminal
 
+-- Floating window management
+--- @type table
+M.floating = floating.floating
+
 --- Force insert mode when entering the Claude Code window
 --- This is a public function used in keymaps
 function M.force_insert_mode()
@@ -94,6 +99,7 @@ function M.toggle_with_variant(variant_name)
   M.config.command = original_command
 end
 
+
 --- Get the current version of the plugin
 --- @return string version Current version string
 function M.get_version()
diff --git a/lua/claude-code/keymaps.lua b/lua/claude-code/keymaps.lua
index 5441bd1..f7b89f8 100644
--- a/lua/claude-code/keymaps.lua
+++ b/lua/claude-code/keymaps.lua
@@ -22,6 +22,7 @@ function M.register_keymaps(claude_code, config)
     )
   end
 
+
   if config.keymaps.toggle.terminal then
     -- Terminal mode toggle keymap
     -- In terminal mode, special keys like Ctrl need different handling
diff --git a/lua/claude-code/terminal.lua b/lua/claude-code/terminal.lua
index 2b8172d..dce9407 100644
--- a/lua/claude-code/terminal.lua
+++ b/lua/claude-code/terminal.lua
@@ -100,6 +100,12 @@ end
 --- @param config table The plugin configuration
 --- @param git table The git module
 function M.toggle(claude_code, config, git)
+  -- If position is floating, delegate to floating window system
+  if config.window.position == 'floating' then
+    local floating = require('claude-code.floating')
+    return floating.toggle(claude_code, config, git)
+  end
+
   -- Determine instance ID based on config
   local instance_id
   if config.git.multi_instance then