diff --git a/public/css/style.css b/public/css/style.css
index 9a91bdc..bf733b4 100644
--- a/public/css/style.css
+++ b/public/css/style.css
@@ -614,3 +614,146 @@ body {
     border-radius: 0.75rem;
     overflow: hidden;
 }
+
+/* Enhanced Chat Message Formatting */
+.message-text {
+    line-height: 1.6;
+    word-wrap: break-word;
+    overflow-wrap: break-word;
+}
+
+.message-text h3,
+.message-text h4,
+.message-text h5 {
+    color: inherit;
+    font-weight: 600;
+    margin-bottom: 0.5rem;
+}
+
+.message-text h3 {
+    font-size: 1.1rem;
+    border-bottom: 1px solid rgba(0,0,0,0.1);
+    padding-bottom: 0.25rem;
+}
+
+.message-text h4 {
+    font-size: 1.05rem;
+}
+
+.message-text h5 {
+    font-size: 1rem;
+}
+
+/* Code formatting */
+.message-text .code-block {
+    background-color: #f8f9fa;
+    border: 1px solid #e9ecef;
+    border-radius: 0.375rem;
+    padding: 0.75rem;
+    margin: 0.5rem 0;
+    font-family: 'Courier New', monospace;
+    font-size: 0.875rem;
+    white-space: pre-wrap;
+    overflow-x: auto;
+    max-width: 100%;
+}
+
+.message-text .inline-code {
+    background-color: #f8f9fa;
+    border: 1px solid #e9ecef;
+    border-radius: 0.25rem;
+    padding: 0.125rem 0.25rem;
+    font-family: 'Courier New', monospace;
+    font-size: 0.875rem;
+    color: #d63384;
+}
+
+/* List formatting */
+.message-text .formatted-list {
+    margin: 0.5rem 0;
+    padding-left: 1.5rem;
+}
+
+.message-text .formatted-list li {
+    margin-bottom: 0.25rem;
+    line-height: 1.5;
+}
+
+.message-text ul.formatted-list {
+    list-style-type: disc;
+}
+
+.message-text ol.formatted-list {
+    list-style-type: decimal;
+}
+
+.message-text .bullet-item,
+.message-text .list-item {
+    display: list-item;
+}
+
+/* Bold and italic text */
+.message-text strong {
+    font-weight: 600;
+}
+
+.message-text em {
+    font-style: italic;
+}
+
+/* Paragraph spacing */
+.message-text br + br {
+    display: block;
+    margin: 0.5rem 0;
+    content: "";
+}
+
+/* Special styling for bot messages */
+.bot-message .message-text .code-block {
+    background-color: #f1f3f4;
+    border-color: #dadce0;
+}
+
+.bot-message .message-text .inline-code {
+    background-color: #f1f3f4;
+    border-color: #dadce0;
+    color: #1a73e8;
+}
+
+/* Special styling for user messages */
+.user-message .message-text .code-block {
+    background-color: rgba(255,255,255,0.1);
+    border-color: rgba(255,255,255,0.2);
+    color: #ffffff;
+}
+
+.user-message .message-text .inline-code {
+    background-color: rgba(255,255,255,0.1);
+    border-color: rgba(255,255,255,0.2);
+    color: #ffffff;
+}
+
+.user-message .message-text h3,
+.user-message .message-text h4,
+.user-message .message-text h5 {
+    color: #ffffff;
+    border-color: rgba(255,255,255,0.3);
+}
+
+/* Responsive adjustments for mobile */
+@media (max-width: 768px) {
+    .message-text .code-block {
+        font-size: 0.8rem;
+        padding: 0.5rem;
+    }
+    
+    .message-text .formatted-list {
+        padding-left: 1.2rem;
+    }
+    
+    .message-text h3,
+    .message-text h4,
+    .message-text h5 {
+        font-size: 0.95rem;
+    }
+}
diff --git a/views/chat.ejs b/views/chat.ejs
index 156b7c1..9c4e1e2 100644
--- a/views/chat.ejs
+++ b/views/chat.ejs
@@ -94,6 +94,22 @@ document.addEventListener('DOMContentLoaded', function() {
     function addWelcomeMessage() {
         const messageDiv = document.createElement('div');
         messageDiv.className = 'chat-message bot-message mb-3';
+        const welcomeText = `Hello! I'm **EduCat AI**, your study assistant. I can help you with:
+
+• Questions about your notes and study materials
+• Study techniques and academic strategies
+• Explanations of complex concepts
+• Creating study plans and schedules
+
+I support **rich formatting** in my responses including:
+- **Bold text** and *italic text*
+- \`Code snippets\` and code blocks
+- Numbered lists and bullet points
+- Headers and structured content
+
+How can I assist you today?`;
+        const formattedWelcome = formatMessage(welcomeText, true);
+        
         messageDiv.innerHTML = `
             <div class="d-flex align-items-start">
                 <div class="avatar bg-primary text-white rounded-circle d-flex align-items-center justify-content-center me-3 flex-shrink-0" style="width: 45px; height: 45px; min-width: 45px;">
@@ -101,7 +117,7 @@ document.addEventListener('DOMContentLoaded', function() {
                 </div>
                 <div class="message-content flex-grow-1">
                     <div class="message-bubble bg-light p-3 rounded-3 shadow-sm border">
-                        <p class="mb-0">Hello! I'm EduCat AI, your study assistant. I can help you with questions about your notes, study techniques, and academic topics. How can I assist you today?</p>
+                        <div class="message-text">${formattedWelcome}</div>
                     </div>
                     <small class="text-muted d-block mt-1">Just now</small>
                 </div>
@@ -125,18 +141,81 @@ document.addEventListener('DOMContentLoaded', function() {
         sendToAI(message);
     }
     
+    function formatMessage(text, isBot = false) {
+        if (!isBot) {
+            // For user messages, just escape HTML and preserve basic formatting
+            return text.replace(/&/g, '&amp;')
+                      .replace(/</g, '&lt;')
+                      .replace(/>/g, '&gt;')
+                      .replace(/\n/g, '<br>');
+        }
+        
+        // For bot messages, apply rich formatting
+        let formatted = text
+            // Escape HTML first
+            .replace(/&/g, '&amp;')
+            .replace(/</g, '&lt;')
+            .replace(/>/g, '&gt;');
+        
+        // Convert markdown-style formatting
+        // Bold text **text** or __text__
+        formatted = formatted.replace(/\*\*(.*?)\*\*/g, '<strong>$1</strong>');
+        formatted = formatted.replace(/__(.*?)__/g, '<strong>$1</strong>');
+        
+        // Italic text *text* or _text_
+        formatted = formatted.replace(/(?<!\*)\*([^*]+)\*(?!\*)/g, '<em>$1</em>');
+        formatted = formatted.replace(/(?<!_)_([^_]+)_(?!_)/g, '<em>$1</em>');
+        
+        // Code blocks ```code```
+        formatted = formatted.replace(/```([\s\S]*?)```/g, '<pre class="code-block"><code>$1</code></pre>');
+        
+        // Inline code `code`
+        formatted = formatted.replace(/`([^`]+)`/g, '<code class="inline-code">$1</code>');
+        
+        // Headers
+        formatted = formatted.replace(/^### (.*$)/gm, '<h5 class="mt-3 mb-2">$1</h5>');
+        formatted = formatted.replace(/^## (.*$)/gm, '<h4 class="mt-3 mb-2">$1</h4>');
+        formatted = formatted.replace(/^# (.*$)/gm, '<h3 class="mt-3 mb-2">$1</h3>');
+        
+        // Convert bullet points and numbered lists
+        // Handle bullet points: - item, * item, • item
+        formatted = formatted.replace(/^[\s]*[-*•]\s+(.+)$/gm, '<li class="bullet-item">$1</li>');
+        
+        // Handle numbered lists: 1. item, 2. item, etc.
+        formatted = formatted.replace(/^[\s]*\d+\.\s+(.+)$/gm, '<li class="numbered-item">$1</li>');
+        
+        // Wrap consecutive list items in proper list containers
+        formatted = formatted.replace(/(<li class="bullet-item">.*?<\/li>)(?:\s*<li class="bullet-item">.*?<\/li>)*/gs, function(match) {
+            return '<ul class="formatted-list">' + match + '</ul>';
+        });
+        
+        formatted = formatted.replace(/(<li class="numbered-item">.*?<\/li>)(?:\s*<li class="numbered-item">.*?<\/li>)*/gs, function(match) {
+            return '<ol class="formatted-list">' + match.replace(/class="numbered-item"/g, 'class="list-item"') + '</ol>';
+        });
+        
+        // Convert line breaks to <br> but not inside <pre> or list tags
+        let parts = formatted.split(/(<pre[\s\S]*?<\/pre>|<ul[\s\S]*?<\/ul>|<ol[\s\S]*?<\/ol>)/);
+        for (let i = 0; i < parts.length; i += 2) {
+            parts[i] = parts[i].replace(/\n\s*\n/g, '<br><br>').replace(/\n/g, '<br>');
+        }
+        formatted = parts.join('');
+        
+        return formatted;
+    }
+
     function addMessageToChat(sender, message, withScroll = true) {
         const messageDiv = document.createElement('div');
         messageDiv.className = `chat-message ${sender}-message mb-3`;
         
         const time = new Date().toLocaleTimeString([], {hour: '2-digit', minute:'2-digit'});
+        const formattedMessage = formatMessage(message, sender === 'bot');
         
         if (sender === 'user') {
             messageDiv.innerHTML = `
                 <div class="d-flex align-items-start justify-content-end">
                     <div class="message-content me-3 flex-grow-1" style="max-width: 70%;">
                         <div class="message-bubble bg-primary text-white p-3 rounded-3 shadow-sm">
-                            <p class="mb-0">${message}</p>
+                            <div class="message-text">${formattedMessage}</div>
                         </div>
                         <small class="text-muted d-block text-end mt-1">${time}</small>
                     </div>
@@ -153,7 +232,7 @@ document.addEventListener('DOMContentLoaded', function() {
                     </div>
                     <div class="message-content flex-grow-1" style="max-width: 70%;">
                         <div class="message-bubble bg-light p-3 rounded-3 shadow-sm border">
-                            <p class="mb-0">${message}</p>
+                            <div class="message-text">${formattedMessage}</div>
                         </div>
                         <small class="text-muted d-block mt-1">${time}</small>
                     </div>