diff --git a/docs/superpowers/specs/2026-08-22-local-user-identity-ui-design.md b/docs/superpowers/specs/2026-08-22-local-user-identity-ui-design.md
new file mode 100644
index 00000000..5d19ce81
--- /dev/null
+++ b/docs/superpowers/specs/2026-08-22-local-user-identity-ui-design.md
@@ -0,0 +1,7 @@
+# Local user identity UI
+
+`AuthGate` already maps local authentication mode to `canLogout=true`. The shell
+should render the authenticated identity and its logout control only when
+`authenticatedUser` is present and `canLogout` is true. Upstream/Authentik and
+OIDC modes therefore hide both elements. Local authentication behavior remains
+unchanged.
diff --git a/frontend/src/shell/AppShell.auth.test.tsx b/frontend/src/shell/AppShell.auth.test.tsx
index 16d5a8df..7617fd66 100644
--- a/frontend/src/shell/AppShell.auth.test.tsx
+++ b/frontend/src/shell/AppShell.auth.test.tsx
@@ -65,7 +65,7 @@ describe("authenticated shell permissions", () => {
     expect(screen.getByRole("button", { name: "All sessions" })).toBeInTheDocument();
   });
 
-  test("hides logout outside local authentication while preserving the identity", async () => {
+  test("hides identity and logout outside local authentication", async () => {
     let logoutCalls = 0;
     server.use(http.post("/api/auth/logout", () => {
       logoutCalls += 1;
@@ -79,7 +79,7 @@ describe("authenticated shell permissions", () => {
       permissions: ["session.use"],
     }, false);
 
-    expect(await screen.findByText("portal-user")).toBeInTheDocument();
+    await waitFor(() => expect(screen.queryByText("portal-user")).not.toBeInTheDocument());
     expect(screen.queryByRole("button", { name: "Log out" })).not.toBeInTheDocument();
     expect(logoutCalls).toBe(0);
   });
diff --git a/frontend/src/shell/AppShell.tsx b/frontend/src/shell/AppShell.tsx
index d7097cd8..388ee9e3 100644
--- a/frontend/src/shell/AppShell.tsx
+++ b/frontend/src/shell/AppShell.tsx
@@ -716,16 +716,14 @@ export function AppShell({ canLogout }: AppShellProps) {
             <br />
             Human In The Loop
           </p>
-          {authenticatedUser && (
+          {authenticatedUser && canLogout && (
             <div className="mt-4 flex items-center justify-between gap-2 border-t border-border/70 pt-3 text-left">
               <span className="min-w-0 truncate text-xs text-muted-foreground" title={authenticatedUser.displayName ?? authenticatedUser.subject}>
                 {authenticatedUser.displayName ?? authenticatedUser.subject}
               </span>
-              {canLogout && (
-                <Button variant="ghost" size="xs" onClick={() => { void signOut().catch(() => undefined); }}>
-                  Log out
-                </Button>
-              )}
+              <Button variant="ghost" size="xs" onClick={() => { void signOut().catch(() => undefined); }}>
+                Log out
+              </Button>
             </div>
           )}
         </div>