diff --git a/Core/Database.lua b/Core/Database.lua
index d14253b..9ca0cfd 100644
--- a/Core/Database.lua
+++ b/Core/Database.lua
@@ -42,7 +42,7 @@ function DB:Initialize()
 				showQualityBorderEquipment = true,
 				showQualityBorderOther = true,
 				showSearchBar = true,
-				hideBagline = false,
+				hideBagline = true,
 				hideFooter = false,
 				bgTransparency = 0.15,
 				showTrackedItems = true,
@@ -77,7 +77,7 @@ function DB:Initialize()
 		Guda_CharDB.settings.hideFooter = false
 	end
 	if Guda_CharDB.settings.hideBagline == nil then
-		Guda_CharDB.settings.hideBagline = false
+		Guda_CharDB.settings.hideBagline = true
 	end
 	if Guda_CharDB.settings.showQuestBar == nil then
 		Guda_CharDB.settings.showQuestBar = true
diff --git a/UI/BagFrame.lua b/UI/BagFrame.lua
index 88101ff..7085b5b 100644
--- a/UI/BagFrame.lua
+++ b/UI/BagFrame.lua
@@ -557,6 +557,15 @@ function BagFrame:UpdateBaglineLayout()
 		lastButton = soulbag
 	end
 
+	-- Update backpack texture based on bagline setting
+	if bag0 then
+		if hideBagline then
+			SetItemButtonTexture(bag0, "Interface\\AddOns\\Guda\\Assets\\bags")
+		else
+			SetItemButtonTexture(bag0, "Interface\\Buttons\\Button-Backpack-Up")
+		end
+	end
+
 	if hideBagline then
 		-- Hide bags 1-4, show only bag0 + keyring + soulbag
 		if bag1 then bag1:Hide() end
diff --git a/UI/SettingsPopup.lua b/UI/SettingsPopup.lua
index 7943e87..3b7a048 100644
--- a/UI/SettingsPopup.lua
+++ b/UI/SettingsPopup.lua
@@ -163,7 +163,7 @@ function Guda_SettingsPopup_OnShow(self)
     end
     local hideBagline = Guda.Modules.DB:GetSetting("hideBagline")
     if hideBagline == nil then
-        hideBagline = false
+        hideBagline = true  -- default: hidden (Show All Bags unchecked)
     end
     local bgTransparency = Guda.Modules.DB:GetSetting("bgTransparency") or 0.15
     local bagViewType = Guda.Modules.DB:GetSetting("bagViewType") or "single"
@@ -263,7 +263,8 @@ function Guda_SettingsPopup_OnShow(self)
     end
 
     if hoverBaglineCheckbox then
-        hoverBaglineCheckbox:SetChecked(hideBagline and 1 or 0)
+        -- Inverted: checked = show bags = NOT hidden
+        hoverBaglineCheckbox:SetChecked(hideBagline and 0 or 1)
     end
 
     if showTooltipCountsCheckbox then
@@ -1003,7 +1004,7 @@ end
 function Guda_SettingsPopup_HoverBaglineCheckbox_OnLoad(self)
     local text = getglobal(self:GetName().."Text")
     if text then
-        text:SetText("Hide Bagline")
+        text:SetText("Show All Bags")
 
         -- Increase font size
         local font, _, flags = text:GetFont()
@@ -1015,24 +1016,27 @@ function Guda_SettingsPopup_HoverBaglineCheckbox_OnLoad(self)
     -- Tooltip
     self.tooltipText = L_HIDE_BAGLINE_TT
 
-    local hideBagline = false
+    local hideBagline = true
     if Guda and Guda.Modules and Guda.Modules.DB then
-        hideBagline = Guda.Modules.DB:GetSetting("hideBagline")
-        if hideBagline == nil then
-            hideBagline = false
+        local val = Guda.Modules.DB:GetSetting("hideBagline")
+        if val == nil then
+            hideBagline = true  -- default: hidden (Show All Bags unchecked)
+        else
+            hideBagline = val
         end
     end
 
-    self:SetChecked(hideBagline and 1 or 0)
+    -- Inverted: checked = NOT hidden
+    self:SetChecked(hideBagline and 0 or 1)
 end
 
--- Hide Bagline Checkbox OnClick
+-- Show All Bags Checkbox OnClick (inverted hideBagline)
 function Guda_SettingsPopup_HoverBaglineCheckbox_OnClick(self)
     local isChecked = self:GetChecked() == 1
 
-    -- Save setting
+    -- Save setting (inverted: checked means show, so hideBagline = false)
     if Guda and Guda.Modules and Guda.Modules.DB then
-        Guda.Modules.DB:SetSetting("hideBagline", isChecked)
+        Guda.Modules.DB:SetSetting("hideBagline", not isChecked)
     end
 
     -- Update bag0 icon