diff --git a/extensions/studio/src/browser/explorer-filter.ts b/extensions/studio/src/browser/explorer-filter.ts
new file mode 100644
index 0000000..11de53b
--- /dev/null
+++ b/extensions/studio/src/browser/explorer-filter.ts
@@ -0,0 +1,128 @@
+// SPDX-FileCopyrightText: 2026 Star Haven contributors
+//
+// SPDX-License-Identifier: AGPL-3.0-or-later
+
+import { injectable, inject } from "@theia/core/shared/inversify";
+import { FrontendApplicationContribution } from "@theia/core/lib/browser";
+import { PreferenceService } from "@theia/core/lib/common/preferences/preference-service";
+import {
+  PreferenceContribution,
+  PreferenceSchema,
+} from "@theia/core/lib/common/preferences/preference-schema";
+import { PreferenceScope } from "@theia/core/lib/common/preferences/preference-scope";
+
+export const SHOW_ALL_FILES_PREF = "starHaven.showAllProjectFiles";
+
+export const StarHavenPreferencesSchema: PreferenceSchema = {
+  scope: PreferenceScope.Folder,
+  properties: {
+    [SHOW_ALL_FILES_PREF]: {
+      type: "boolean",
+      default: false,
+      description:
+        "Show all engine files in the explorer. When disabled, only assets, include, and src are shown.",
+    },
+  },
+};
+
+@injectable()
+export class StarHavenPreferenceContribution implements PreferenceContribution {
+  schema = StarHavenPreferencesSchema;
+}
+
+// Directories/files visible in default mode (modder-facing)
+const DEFAULT_VISIBLE = new Set(["assets", "include", "src", "README.md"]);
+
+// Additionally visible in advanced mode
+const ADVANCED_VISIBLE = new Set(["ver", "tools", ".github"]);
+
+// Patterns to always hide (build artifacts, config)
+const ALWAYS_HIDDEN: Record<string, boolean> = {
+  "**/.git": true,
+  "**/.jj": true,
+  "**/.direnv": true,
+  "**/.cache": true,
+  "**/build": true,
+  "**/.n2_db": true,
+  "**/.ninja_deps": true,
+  "**/.run_hash": true,
+  "**/.starrod": true,
+  "**/.dx": true,
+  "**/venv": true,
+  "**/*.o": true,
+};
+
+// Root-level items to hide in default mode
+const DEFAULT_HIDDEN: Record<string, boolean> = {
+  "build.ninja": true,
+  "build.bat": true,
+  "compile_commands.json": true,
+  configure: true,
+  "flake.lock": true,
+  "flake.nix": true,
+  "pyproject.toml": true,
+  "requirements.txt": true,
+  "requirements_extra.txt": true,
+  "treefmt.toml": true,
+  run: true,
+  "CLAUDE.md": true,
+  ".clang-format": true,
+  ".clang-tidy": true,
+  ".clangd": true,
+  ".claude": true,
+  ".editorconfig": true,
+  ".envrc": true,
+  ".git-blame-ignore-revs": true,
+  ".gitattributes": true,
+  ".gitignore": true,
+  ".vscode": true,
+  ".zed": true,
+  ".nix-profile": true,
+  ".nix-profile-*-link": true,
+  ver: true,
+  tools: true,
+  module: true,
+  ".github": true,
+  "versioning.o": true,
+  "xprintf.o": true,
+};
+
+// In advanced mode, remove these from the hidden list
+const ADVANCED_UNHIDDEN = ["ver", "tools", ".github"];
+
+@injectable()
+export class ExplorerFilterContribution
+  implements FrontendApplicationContribution
+{
+  @inject(PreferenceService)
+  protected readonly preferenceService!: PreferenceService;
+
+  async onStart(): Promise<void> {
+    await this.preferenceService.ready;
+    this.applyFilter();
+    this.preferenceService.onPreferenceChanged((e) => {
+      if (e.preferenceName === SHOW_ALL_FILES_PREF) {
+        this.applyFilter();
+      }
+    });
+  }
+
+  protected applyFilter(): void {
+    const showAll = this.preferenceService.get<boolean>(
+      SHOW_ALL_FILES_PREF,
+      false,
+    );
+
+    const excludes: Record<string, boolean> = { ...ALWAYS_HIDDEN };
+
+    if (!showAll) {
+      Object.assign(excludes, DEFAULT_HIDDEN);
+    }
+
+    this.preferenceService.set(
+      "files.exclude",
+      excludes,
+      PreferenceScope.Workspace,
+    );
+  }
+}
diff --git a/extensions/studio/src/browser/studio-frontend-module.ts b/extensions/studio/src/browser/studio-frontend-module.ts
index 70362e6..139acae 100644
--- a/extensions/studio/src/browser/studio-frontend-module.ts
+++ b/extensions/studio/src/browser/studio-frontend-module.ts
@@ -29,6 +29,11 @@ import { EvtKeywordDecorator } from "./c-language/evt-keyword-decorator";
 // import { EvtSemanticTokensContribution } from "./c-language/evt-semantic-tokens";
 import { ThemeContribution } from "./themes/theme-contribution";
 import { IconThemeSync } from "./icon-theme-sync";
+import {
+  ExplorerFilterContribution,
+  StarHavenPreferenceContribution,
+} from "./explorer-filter";
+import { PreferenceContribution } from "@theia/core/lib/common/preferences/preference-schema";
 
 import "../../src/browser/asset-browser/style.css";
 import "../../src/browser/fonts/fonts.css";
@@ -80,4 +85,10 @@ export default new ContainerModule((bind) => {
 
   bind(IconThemeSync).toSelf().inSingletonScope();
   bind(FrontendApplicationContribution).toService(IconThemeSync);
+
+  bind(StarHavenPreferenceContribution).toSelf().inSingletonScope();
+  bind(PreferenceContribution).toService(StarHavenPreferenceContribution);
+
+  bind(ExplorerFilterContribution).toSelf().inSingletonScope();
+  bind(FrontendApplicationContribution).toService(ExplorerFilterContribution);
 });