diff --git a/src/components/WalletConnectionStatus.tsx b/src/components/WalletConnectionStatus.tsx
new file mode 100644
index 0000000..e5eaf92
--- /dev/null
+++ b/src/components/WalletConnectionStatus.tsx
@@ -0,0 +1,65 @@
+/**
+ * WalletConnectionStatus Component
+ *
+ * Displays a visual indicator for wallet connection status.
+ * Shows different colors and animations based on status:
+ * - connected: green
+ * - connecting: yellow (pulsing)
+ * - error: red
+ * - disconnected: gray
+ */
+
+import type { NWCConnectionStatus } from "@/services/nwc";
+
+interface WalletConnectionStatusProps {
+  status: NWCConnectionStatus;
+  /** Size of the indicator */
+  size?: "sm" | "md";
+  /** Whether to show the status label */
+  showLabel?: boolean;
+  /** Additional class names */
+  className?: string;
+}
+
+const sizeClasses = {
+  sm: "size-1.5",
+  md: "size-2",
+};
+
+/**
+ * Get the color class for a connection status
+ */
+export function getConnectionStatusColor(status: NWCConnectionStatus): string {
+  switch (status) {
+    case "connected":
+      return "bg-green-500";
+    case "connecting":
+      return "bg-yellow-500 animate-pulse";
+    case "error":
+      return "bg-red-500";
+    default:
+      return "bg-gray-500";
+  }
+}
+
+export function WalletConnectionStatus({
+  status,
+  size = "sm",
+  showLabel = false,
+  className = "",
+}: WalletConnectionStatusProps) {
+  const colorClass = getConnectionStatusColor(status);
+
+  if (!showLabel) {
+    return (
+      <span className={`${sizeClasses[size]} ${colorClass} ${className}`} />
+    );
+  }
+
+  return (
+    <div className={`flex items-center gap-1.5 ${className}`}>
+      <span className={`${sizeClasses[size]} ${colorClass}`} />
+      <span className="text-sm font-medium capitalize">{status}</span>
+    </div>
+  );
+}
diff --git a/src/components/WalletViewer.tsx b/src/components/WalletViewer.tsx
index 89ecf32..0ac56b7 100644
--- a/src/components/WalletViewer.tsx
+++ b/src/components/WalletViewer.tsx
@@ -62,6 +62,7 @@ import { KindRenderer } from "./nostr/kinds";
 import { RichText } from "./nostr/RichText";
 import { UserName } from "./nostr/UserName";
 import { CodeCopyButton } from "./CodeCopyButton";
+import { WalletConnectionStatus } from "./WalletConnectionStatus";
 import type { Transaction } from "@/types/wallet";
 
 interface InvoiceDetails {
@@ -873,17 +874,7 @@ export default function WalletViewer() {
           </span>
           <Tooltip>
             <TooltipTrigger asChild>
-              <div
-                className={`size-1.5 rounded-full ${
-                  connectionStatus === "connected"
-                    ? "bg-green-500"
-                    : connectionStatus === "connecting"
-                      ? "bg-yellow-500 animate-pulse"
-                      : connectionStatus === "error"
-                        ? "bg-red-500"
-                        : "bg-gray-500"
-                }`}
-              />
+              <WalletConnectionStatus status={connectionStatus} size="sm" />
             </TooltipTrigger>
             <TooltipContent>
               {connectionStatus === "connected" && "Connected"}
diff --git a/src/components/nostr/user-menu.tsx b/src/components/nostr/user-menu.tsx
index dbd724d..0df2ba6 100644
--- a/src/components/nostr/user-menu.tsx
+++ b/src/components/nostr/user-menu.tsx
@@ -10,6 +10,7 @@ import {
   LogOut,
   Settings,
 } from "lucide-react";
+import { WalletConnectionStatus } from "@/components/WalletConnectionStatus";
 import accounts from "@/services/accounts";
 import { useProfile } from "@/hooks/useProfile";
 import { use$ } from "applesauce-react/hooks";
@@ -239,22 +240,11 @@ export default function UserMenu() {
               {/* Connection Status */}
               <div className="flex items-center justify-between">
                 <span className="text-sm text-muted-foreground">Status:</span>
-                <div className="flex items-center gap-2">
-                  <span
-                    className={`size-2 rounded-full ${
-                      connectionStatus === "connected"
-                        ? "bg-green-500"
-                        : connectionStatus === "connecting"
-                          ? "bg-yellow-500 animate-pulse"
-                          : connectionStatus === "error"
-                            ? "bg-red-500"
-                            : "bg-gray-500"
-                    }`}
-                  />
-                  <span className="text-sm font-medium capitalize">
-                    {connectionStatus}
-                  </span>
-                </div>
+                <WalletConnectionStatus
+                  status={connectionStatus}
+                  size="md"
+                  showLabel
+                />
               </div>
 
               {/* Lightning Address */}
@@ -378,17 +368,7 @@ export default function UserMenu() {
                   </span>
                 )}
               </div>
-              <span
-                className={`size-1.5 rounded-full ${
-                  connectionStatus === "connected"
-                    ? "bg-green-500"
-                    : connectionStatus === "connecting"
-                      ? "bg-yellow-500 animate-pulse"
-                      : connectionStatus === "error"
-                        ? "bg-red-500"
-                        : "bg-gray-500"
-                }`}
-              />
+              <WalletConnectionStatus status={connectionStatus} size="sm" />
             </DropdownMenuItem>
           ) : (
             <DropdownMenuItem