diff --git a/Taskfile.yml b/Taskfile.yml
index 1327422..f43599b 100644
--- a/Taskfile.yml
+++ b/Taskfile.yml
@@ -1,13 +1,14 @@
 version: "3"
 vars:
   TEMPL_PROXYBIND: '{{.TEMPL_PROXYBIND | default "127.0.0.1"}}'
+  TEMPL_PROXYPORT: '{{.TEMPL_PROXYPORT | default "7331"}}'
   TEMPL_PROXY: '{{.TEMPL_PROXY | default "http://127.0.0.1:9000"}}'
 tasks:
   # Development Tools
   templ:
     desc: Run templ with integrated server and hot reload
     cmds:
-      - go tool templ generate --watch --cmd="go run ./cmd/server/main.go" --proxybind="{{.TEMPL_PROXYBIND}}" --proxy="{{.TEMPL_PROXY}}" --open-browser=false
+      - go tool templ generate --watch --cmd="go run ./cmd/server/main.go" --proxybind="{{.TEMPL_PROXYBIND}}" --proxyport="{{.TEMPL_PROXYPORT}}" --proxy="{{.TEMPL_PROXY}}" --open-browser=false
   tailwind-clean:
     desc: Clean tailwind output
     cmds:
diff --git a/internal/handler/dashboard.go b/internal/handler/dashboard.go
index e3f29ce..4c2d479 100644
--- a/internal/handler/dashboard.go
+++ b/internal/handler/dashboard.go
@@ -3,6 +3,7 @@ package handler
 import (
 	"log/slog"
 	"net/http"
+	"strings"
 
 	"git.juancwu.dev/juancwu/budgit/internal/ctxkeys"
 	"git.juancwu.dev/juancwu/budgit/internal/service"
@@ -43,3 +44,23 @@ func (h *dashboardHandler) DashboardPage(w http.ResponseWriter, r *http.Request)
 
 	ui.Render(w, r, pages.Dashboard(spaces, totalBalance))
 }
+
+func (h *dashboardHandler) CreateSpace(w http.ResponseWriter, r *http.Request) {
+	user := ctxkeys.User(r.Context())
+
+	name := strings.TrimSpace(r.FormValue("name"))
+	if name == "" {
+		http.Error(w, "Space name is required", http.StatusBadRequest)
+		return
+	}
+
+	space, err := h.spaceService.CreateSpace(name, user.ID)
+	if err != nil {
+		slog.Error("failed to create space", "error", err, "user_id", user.ID)
+		http.Error(w, "Internal Server Error", http.StatusInternalServerError)
+		return
+	}
+
+	w.Header().Set("HX-Redirect", "/app/spaces/"+space.ID)
+	w.WriteHeader(http.StatusOK)
+}
diff --git a/internal/routes/routes.go b/internal/routes/routes.go
index be2bc19..55b8ba1 100644
--- a/internal/routes/routes.go
+++ b/internal/routes/routes.go
@@ -55,6 +55,7 @@ func SetupRoutes(a *app.App) http.Handler {
 	mux.HandleFunc("POST /auth/onboarding", authRateLimiter(middleware.RequireAuth(auth.CompleteOnboarding)))
 
 	mux.HandleFunc("GET /app/dashboard", middleware.RequireAuth(dashboard.DashboardPage))
+	mux.HandleFunc("POST /app/spaces", middleware.RequireAuth(dashboard.CreateSpace))
 	mux.HandleFunc("GET /app/settings", middleware.RequireAuth(settings.SettingsPage))
 	mux.HandleFunc("POST /app/settings/password", authRateLimiter(middleware.RequireAuth(settings.SetPassword)))
 
diff --git a/internal/ui/pages/app_dashboard.templ b/internal/ui/pages/app_dashboard.templ
index 8ac0743..8144972 100644
--- a/internal/ui/pages/app_dashboard.templ
+++ b/internal/ui/pages/app_dashboard.templ
@@ -4,7 +4,13 @@ import (
 	"fmt"
 	"git.juancwu.dev/juancwu/budgit/internal/model"
 	"git.juancwu.dev/juancwu/budgit/internal/ui/layouts"
+	"git.juancwu.dev/juancwu/budgit/internal/ui/components/button"
 	"git.juancwu.dev/juancwu/budgit/internal/ui/components/card"
+	"git.juancwu.dev/juancwu/budgit/internal/ui/components/csrf"
+	"git.juancwu.dev/juancwu/budgit/internal/ui/components/dialog"
+	"git.juancwu.dev/juancwu/budgit/internal/ui/components/icon"
+	"git.juancwu.dev/juancwu/budgit/internal/ui/components/input"
+	"git.juancwu.dev/juancwu/budgit/internal/ui/components/label"
 )
 
 templ Dashboard(spaces []*model.Space, totalBalance int) {
@@ -43,11 +49,48 @@ templ Dashboard(spaces []*model.Space, totalBalance int) {
 				}
 
 				// Option to create a new space
-				@card.Card(card.Props{ Class: "h-full border-dashed" }) {
-					@card.Content(card.ContentProps{ Class: "h-full flex flex-col items-center justify-center py-12" }) {
-						<p class="text-muted-foreground mb-4">Need another space?</p>
-						// TODO: Add a button or link to create a new space
-						<span class="text-sm font-medium opacity-50">Create Space (Coming Soon)</span>
+				@dialog.Dialog(dialog.Props{ID: "create-space-dialog"}) {
+					@dialog.Trigger() {
+						@card.Card(card.Props{ Class: "h-full border-dashed cursor-pointer transition-colors hover:border-primary" }) {
+							@card.Content(card.ContentProps{ Class: "h-full flex flex-col items-center justify-center py-12" }) {
+								@icon.Plus(icon.Props{Class: "h-8 w-8 text-muted-foreground mb-2"})
+								<p class="text-muted-foreground">Create a new space</p>
+							}
+						}
+					}
+					@dialog.Content() {
+						@dialog.Header() {
+							@dialog.Title() {
+								Create Space
+							}
+							@dialog.Description() {
+								Create a new space to organize expenses and shopping lists.
+							}
+						}
+						<form hx-post="/app/spaces" hx-swap="none" class="space-y-4">
+							@csrf.Token()
+							<div class="space-y-2">
+								@label.Label(label.Props{For: "space-name"}) {
+									Name
+								}
+								@input.Input(input.Props{
+									ID:          "space-name",
+									Name:        "name",
+									Type:        input.TypeText,
+									Placeholder: "e.g. Household, Trip, Roommates",
+								})
+							</div>
+							@dialog.Footer() {
+								@dialog.Close(dialog.CloseProps{For: "create-space-dialog"}) {
+									@button.Button(button.Props{Variant: button.VariantOutline, Type: button.TypeButton}) {
+										Cancel
+									}
+								}
+								@button.Button(button.Props{Type: button.TypeSubmit}) {
+									Create
+								}
+							}
+						</form>
 					}
 				}
 			</div>