diff --git a/Guda.toc b/Guda.toc
index fc8e63f..0d1ea53 100644
--- a/Guda.toc
+++ b/Guda.toc
@@ -2,7 +2,7 @@
 ## Title: Guda
 ## Notes: All-in-one bag and bank addon for Turtle WoW
 ## Author: Vati
-## Version: 1.0.7
+## Version: 1.0.8
 ## SavedVariables: Guda_DB
 ## SavedVariablesPerCharacter: Guda_CharDB
 
diff --git a/UI/BagFrame.lua b/UI/BagFrame.lua
index db74da2..b98cc2b 100644
--- a/UI/BagFrame.lua
+++ b/UI/BagFrame.lua
@@ -1764,6 +1764,13 @@ function BagFrame:Initialize()
         BagFrame:UpdateMoney()
     end, "BagFrame")
 
+    -- Update when items get locked/unlocked (for trading, mailing, etc.)
+    addon.Modules.Events:Register("ITEM_LOCK_CHANGED", function()
+        if not currentViewChar then
+            BagFrame:Update()
+        end
+    end, "BagFrame")
+
     -- Hide character dropdown when clicking on bag frame
     local bagFrame = getglobal("Guda_BagFrame")
     if bagFrame then
diff --git a/UI/BankFrame.lua b/UI/BankFrame.lua
index ca8169e..4a95e21 100644
--- a/UI/BankFrame.lua
+++ b/UI/BankFrame.lua
@@ -821,6 +821,13 @@ function BankFrame:Initialize()
         end
     end, "BankFrameUI")
 
+    -- Update when items get locked/unlocked (for trading, mailing, etc.)
+    addon.Modules.Events:Register("ITEM_LOCK_CHANGED", function()
+        if addon.Modules.BankScanner:IsBankOpen() and not currentViewChar then
+            addon.Modules.BankFrame:Update()
+        end
+    end, "BankFrameUI")
+
     -- Register bank-specific update events (pfUI style)
     local updateFrame = CreateFrame("Frame")
     updateFrame:RegisterEvent("PLAYERBANKSLOTS_CHANGED")
diff --git a/UI/ItemButton.lua b/UI/ItemButton.lua
index aebbff3..6af5821 100644
--- a/UI/ItemButton.lua
+++ b/UI/ItemButton.lua
@@ -136,6 +136,12 @@ function Guda_ItemButton_SetItem(self, bagID, slotID, itemData, isBank, otherCha
         -- Set icon
         SetItemButtonTexture(self, itemData.texture)
 
+        -- Gray out locked items (being traded, mailed, or auctioned) - BagShui style
+        -- Don't desaturate items from other characters since they're read-only anyway
+        if not self.otherChar and not self.isReadOnly then
+            SetItemButtonDesaturated(self, itemData.locked, 0.5, 0.5, 0.5)
+        end
+
         -- Hide NormalTexture for filled slots (pfUI style)
         self:SetNormalTexture("")
         local normalBorder = getglobal(self:GetName().."NormalTexture")