diff --git a/apps/web/src/app/[lang]/dho/[id]/_components/select-settings-action.tsx b/apps/web/src/app/[lang]/dho/[id]/_components/select-settings-action.tsx
index 0abd9f8e9..7cea6f63e 100644
--- a/apps/web/src/app/[lang]/dho/[id]/_components/select-settings-action.tsx
+++ b/apps/web/src/app/[lang]/dho/[id]/_components/select-settings-action.tsx
@@ -4,7 +4,6 @@ import { SelectAction, useActionGating } from '@hypha-platform/epics';
 import { Locale } from '@hypha-platform/i18n';
 import { isAbsoluteUrl } from '@hypha-platform/ui-utils';
 import {
-  ArchiveIcon,
   ArrowDownIcon,
   ArrowLeftIcon,
   ArrowRightIcon,
@@ -68,16 +67,6 @@ export const SelectSettingsAction = ({
       baseTab: 'agreements',
       icon: <ArrowRightIcon />,
     },
-    {
-      group: 'Overview',
-      title: 'Archive Space (Coming Soon)',
-      description:
-        'Archive this space to disable activity while preserving its data and history.',
-      href: '#',
-      icon: <ArchiveIcon />,
-      baseTab: 'members',
-      disabled: true,
-    },
     {
       defaultDurationDays: 4,
       group: 'Agreements',
diff --git a/apps/web/src/app/[lang]/dho/[id]/layout.tsx b/apps/web/src/app/[lang]/dho/[id]/layout.tsx
index 9eba52a44..79aa7e5a3 100644
--- a/apps/web/src/app/[lang]/dho/[id]/layout.tsx
+++ b/apps/web/src/app/[lang]/dho/[id]/layout.tsx
@@ -27,6 +27,7 @@ import {
   DEFAULT_SPACE_LEAD_IMAGE,
   fetchSpaceDetails,
   fetchSpaceProposalsIds,
+  isSpaceArchived,
 } from '@hypha-platform/core/client';
 import { notFound } from 'next/navigation';
 import { db } from '@hypha-platform/storage-postgres';
@@ -165,6 +166,9 @@ export default async function DhoLayout({
             web3SpaceId={spaceFromDb.web3SpaceId as number}
             isSandbox={spaceFromDb.flags.includes('sandbox')}
             isDemo={spaceFromDb.flags.includes('demo')}
+            isArchived={
+              spaceFromDb.flags.includes('archived') || spaceMembers === 0
+            }
             configPath={`${getDhoPathAgreements(
               lang,
               daoSlug,
@@ -202,6 +206,7 @@ export default async function DhoLayout({
                         title={space.title as string}
                         isSandbox={space.flags?.includes('sandbox') ?? false}
                         isDemo={space.flags?.includes('demo') ?? false}
+                        isArchived={isSpaceArchived(space)}
                         web3SpaceId={space.web3SpaceId as number}
                         configPath={`${getDhoPathAgreements(
                           lang,
diff --git a/apps/web/src/app/[lang]/my-spaces/page.tsx b/apps/web/src/app/[lang]/my-spaces/page.tsx
index b124e0d78..0205185e6 100644
--- a/apps/web/src/app/[lang]/my-spaces/page.tsx
+++ b/apps/web/src/app/[lang]/my-spaces/page.tsx
@@ -4,6 +4,7 @@ import {
   SpaceSearch,
   AuthenticatedLinkButton,
 } from '@hypha-platform/epics';
+import { isSpaceArchived } from '@hypha-platform/core/client';
 import Link from 'next/link';
 import { Locale } from '@hypha-platform/i18n';
 import {
@@ -91,6 +92,7 @@ export default async function Index(props: PageProps) {
                       title={space.title as string}
                       isSandbox={space.flags?.includes('sandbox') ?? false}
                       isDemo={space.flags?.includes('demo') ?? false}
+                      isArchived={isSpaceArchived(space)}
                       web3SpaceId={space.web3SpaceId as number}
                       createdAt={space.createdAt}
                       configPath={`${getDhoPathAgreements(
diff --git a/apps/web/src/app/[lang]/network/page.tsx b/apps/web/src/app/[lang]/network/page.tsx
index aa72b91cc..a0a0265fd 100644
--- a/apps/web/src/app/[lang]/network/page.tsx
+++ b/apps/web/src/app/[lang]/network/page.tsx
@@ -52,6 +52,7 @@ export default async function Index(props: PageProps) {
   const spaces = await getAllSpaces({
     search: query?.trim() || undefined,
     parentOnly: false,
+    omitArchived: true,
   });
 
   const uniqueCategories = extractUniqueCategories(spaces);
diff --git a/packages/core/src/categories/types.ts b/packages/core/src/categories/types.ts
index f07bf6683..84627df8b 100644
--- a/packages/core/src/categories/types.ts
+++ b/packages/core/src/categories/types.ts
@@ -49,5 +49,5 @@ export type SpaceOrder = (typeof SPACE_ORDERS)[number];
 /**
  * @todo fix duplication. Origin at `packages/storage-postgres/src/schema/flags.ts`
  */
-export const SPACE_FLAGS = ['sandbox', 'demo'] as const;
+export const SPACE_FLAGS = ['sandbox', 'demo', 'archived'] as const;
 export type SpaceFlags = (typeof SPACE_FLAGS)[number];
diff --git a/packages/core/src/space/index.ts b/packages/core/src/space/index.ts
index 9c24fd80c..a9ace402b 100644
--- a/packages/core/src/space/index.ts
+++ b/packages/core/src/space/index.ts
@@ -1,3 +1,4 @@
 export * from './client';
 export * from './types';
+export * from './utils';
 export * from './validation';
diff --git a/packages/core/src/space/server/queries.ts b/packages/core/src/space/server/queries.ts
index 0620959e4..f95404e64 100644
--- a/packages/core/src/space/server/queries.ts
+++ b/packages/core/src/space/server/queries.ts
@@ -19,11 +19,17 @@ type FindAllSpacesProps = {
   search?: string;
   parentOnly?: boolean;
   omitSandbox?: boolean;
+  omitArchived?: boolean;
 };
 
 export const findAllSpaces = async (
   { db }: DbConfig,
-  { search, parentOnly = true, omitSandbox = false }: FindAllSpacesProps,
+  {
+    search,
+    parentOnly = true,
+    omitSandbox = false,
+    omitArchived = false,
+  }: FindAllSpacesProps,
 ) => {
   const results = await db
     .select({
@@ -50,6 +56,9 @@ export const findAllSpaces = async (
         omitSandbox
           ? not(sql`${spaces.flags} @> '["sandbox"]'::jsonb`)
           : undefined,
+        omitArchived
+          ? not(sql`${spaces.flags} @> '["archived"]'::jsonb`)
+          : undefined,
         search
           ? sql`(
               -- Full-text search for exact word matches (highest priority)
diff --git a/packages/core/src/space/server/web3/get-all-spaces.ts b/packages/core/src/space/server/web3/get-all-spaces.ts
index 972d0e189..fd1fa0c93 100644
--- a/packages/core/src/space/server/web3/get-all-spaces.ts
+++ b/packages/core/src/space/server/web3/get-all-spaces.ts
@@ -2,7 +2,7 @@
 
 import { db } from '@hypha-platform/storage-postgres';
 import { findAllSpaces } from '@hypha-platform/core/server';
-import { Space } from '@hypha-platform/core/client';
+import { Space, isSpaceArchived } from '@hypha-platform/core/client';
 import {
   fetchSpaceDetails,
   fetchSpaceProposalsIds,
@@ -13,6 +13,7 @@ interface GetAllSpacesProps {
   search?: string;
   parentOnly?: boolean;
   omitSandbox?: boolean;
+  omitArchived?: boolean;
 }
 
 export async function getAllSpaces(
@@ -35,9 +36,10 @@ export async function getAllSpaces(
     const details = formMap(web3details);
     const proposalsIds = formMap(web3proposalsIds);
 
-    return spaces.map((space) => {
+    const enrichedSpaces = spaces.map((space) => {
       if (space.web3SpaceId === null) {
-        return space;
+        // No web3 data = no on-chain members, treat as archived when filtering
+        return { ...space, memberCount: 0 };
       }
 
       const spaceDetails = details.get(BigInt(space.web3SpaceId));
@@ -54,6 +56,12 @@ export async function getAllSpaces(
         documentCount: spaceProposals?.accepted.length ?? 0,
       };
     });
+
+    if (props.omitArchived) {
+      return enrichedSpaces.filter((space) => !isSpaceArchived(space));
+    }
+
+    return enrichedSpaces;
   } catch (error) {
     throw new Error('Failed to get spaces', {
       cause: error instanceof Error ? error : new Error(String(error)),
diff --git a/packages/core/src/space/utils.ts b/packages/core/src/space/utils.ts
new file mode 100644
index 000000000..4bca9b5e7
--- /dev/null
+++ b/packages/core/src/space/utils.ts
@@ -0,0 +1,15 @@
+/**
+ * Determines if a space should be considered archived.
+ * A space is archived if:
+ * - It has the 'archived' flag, OR
+ * - It has 0 members (memberCount is explicitly 0 from Web3 data)
+ */
+export function isSpaceArchived(space: {
+  flags?: string[];
+  memberCount?: number;
+}): boolean {
+  return (
+    space.flags?.includes('archived') === true ||
+    (space.memberCount !== undefined && space.memberCount === 0)
+  );
+}
diff --git a/packages/epics/src/spaces/components/create-space-form.tsx b/packages/epics/src/spaces/components/create-space-form.tsx
index f59e5ded4..8be6fcc1e 100644
--- a/packages/epics/src/spaces/components/create-space-form.tsx
+++ b/packages/epics/src/spaces/components/create-space-form.tsx
@@ -300,16 +300,23 @@ export const SpaceForm = ({
     [flags],
   );
   const isDemo = React.useMemo(() => flags?.includes('demo') ?? false, [flags]);
+  const isArchived = React.useMemo(
+    () => flags?.includes('archived') ?? false,
+    [flags],
+  );
   const isLive = React.useMemo(
-    () => !isDemo && !isSandbox,
-    [isDemo, isSandbox],
+    () => !isDemo && !isSandbox && !isArchived,
+    [isDemo, isSandbox, isArchived],
   );
 
   const toggleSandbox = React.useCallback(() => {
     const current = form.getValues().flags ?? [];
     const next = current.includes('sandbox')
       ? current.filter((f) => f !== 'sandbox')
-      : (['sandbox', ...current.filter((f) => f !== 'demo')] as SpaceFlags[]);
+      : ([
+          'sandbox',
+          ...current.filter((f) => f !== 'demo' && f !== 'archived'),
+        ] as SpaceFlags[]);
     form.setValue('flags', next, { shouldDirty: true, shouldValidate: true });
     if (next.includes('sandbox')) {
       form.clearErrors('categories');
@@ -320,13 +327,29 @@ export const SpaceForm = ({
     const current = form.getValues().flags ?? [];
     const next = current.includes('demo')
       ? current.filter((f) => f !== 'demo')
-      : (['demo', ...current.filter((f) => f !== 'sandbox')] as SpaceFlags[]);
+      : ([
+          'demo',
+          ...current.filter((f) => f !== 'sandbox' && f !== 'archived'),
+        ] as SpaceFlags[]);
+    form.setValue('flags', next, { shouldDirty: true, shouldValidate: true });
+  }, [form]);
+
+  const toggleArchived = React.useCallback(() => {
+    const current = form.getValues().flags ?? [];
+    const next = current.includes('archived')
+      ? current.filter((f) => f !== 'archived')
+      : ([
+          'archived',
+          ...current.filter((f) => f !== 'demo' && f !== 'sandbox'),
+        ] as SpaceFlags[]);
     form.setValue('flags', next, { shouldDirty: true, shouldValidate: true });
   }, [form]);
 
   const toggleLive = React.useCallback(() => {
     const current = form.getValues().flags ?? [];
-    const next = current.filter((f) => f !== 'demo' && f !== 'sandbox');
+    const next = current.filter(
+      (f) => f !== 'demo' && f !== 'sandbox' && f !== 'archived',
+    );
     form.setValue('flags', next, { shouldDirty: true, shouldValidate: true });
   }, [form]);
 
@@ -363,6 +386,7 @@ export const SpaceForm = ({
           async (space) => {
             if (
               !space.flags?.includes('sandbox') &&
+              !space.flags?.includes('archived') &&
               space.categories.length === 0
             ) {
               showCategoriesError();
@@ -377,7 +401,11 @@ export const SpaceForm = ({
           (e) => {
             const flags = form.getValues()['flags'];
             const categories = form.getValues()['categories'];
-            if (!flags?.includes('sandbox') && categories.length === 0) {
+            if (
+              !flags?.includes('sandbox') &&
+              !flags?.includes('archived') &&
+              categories.length === 0
+            ) {
               showCategoriesError();
             }
             if (parentSpaceId === -1) {
@@ -678,6 +706,30 @@ export const SpaceForm = ({
               </span>
             </div>
           </Card>
+          {label === 'configure' && (
+            <Card
+              className={clsx(
+                'flex p-6 cursor-pointer space-x-4 items-center',
+                {
+                  'border-accent-9': isArchived,
+                  'hover:border-accent-5': !isArchived,
+                },
+              )}
+              onClick={toggleArchived}
+            >
+              <div className="flex flex-col">
+                <span className="text-2 font-medium">Archive Mode</span>
+                <span className="text-1 text-neutral-11">
+                  <span>
+                    Archive this space to temporarily pause activity or
+                    deactivate it while keeping all data and history safe. You
+                    can reactivate it anytime by selecting a different
+                    activation mode.
+                  </span>
+                </span>
+              </div>
+            </Card>
+          )}
         </div>
         <div className="flex justify-end w-full">
           <Button
diff --git a/packages/epics/src/spaces/components/explore-spaces.tsx b/packages/epics/src/spaces/components/explore-spaces.tsx
index a58996655..dec0da97e 100644
--- a/packages/epics/src/spaces/components/explore-spaces.tsx
+++ b/packages/epics/src/spaces/components/explore-spaces.tsx
@@ -1,6 +1,11 @@
 'use client';
 
-import { Category, Space, SpaceOrder } from '@hypha-platform/core/client';
+import {
+  Category,
+  Space,
+  SpaceOrder,
+  isSpaceArchived,
+} from '@hypha-platform/core/client';
 import { SpaceCardList, SpaceSearch } from '@hypha-platform/epics';
 import { Locale } from '@hypha-platform/i18n';
 import { Text } from '@radix-ui/themes';
@@ -111,14 +116,19 @@ export function ExploreSpaces({
   const searchParams = useSearchParams();
   const { replace } = useRouter();
 
+  const nonArchivedSpaces = React.useMemo(
+    () => spaces.filter((space) => !isSpaceArchived(space)),
+    [spaces],
+  );
+
   const categoryFilteredSpaces = React.useMemo(
     () =>
       categories && categories.length > 0
-        ? spaces.filter((space) =>
+        ? nonArchivedSpaces.filter((space) =>
             categoriesIntersected(space.categories, categories),
           )
-        : spaces,
-    [spaces, categories],
+        : nonArchivedSpaces,
+    [nonArchivedSpaces, categories],
   );
 
   const {
diff --git a/packages/epics/src/spaces/components/my-filtered-spaces.tsx b/packages/epics/src/spaces/components/my-filtered-spaces.tsx
index bc22fa77d..7b2828ed3 100644
--- a/packages/epics/src/spaces/components/my-filtered-spaces.tsx
+++ b/packages/epics/src/spaces/components/my-filtered-spaces.tsx
@@ -1,12 +1,13 @@
 'use client';
 
 import { Locale } from '@hypha-platform/i18n';
-import { Address, Space } from '@hypha-platform/core/client';
+import { Address, Space, isSpaceArchived } from '@hypha-platform/core/client';
 import { SpaceCardList, useMemberWeb3SpaceIds } from '@hypha-platform/epics';
 import { useMe } from '@hypha-platform/core/client';
 import React from 'react';
 import { Text } from '@radix-ui/themes';
 import { useFilterSpacesListWithDiscoverability } from '../hooks/use-spaces-discoverability-batch';
+import { SectionFilter, Input } from '@hypha-platform/ui';
 
 export function filterSpaces(
   spaces: Space[],
@@ -36,6 +37,7 @@ export function MyFilteredSpaces({
   const { web3SpaceIds } = useMemberWeb3SpaceIds({
     personAddress: person?.address as Address | undefined,
   });
+  const [hideArchivedSpaces, setHideArchivedSpaces] = React.useState(true);
 
   const memberFilteredSpaces = React.useMemo(
     () => filterSpaces(spaces, person?.slug, web3SpaceIds),
@@ -48,14 +50,29 @@ export function MyFilteredSpaces({
       useGeneralState: false,
     });
 
+  const displayedSpaces = React.useMemo(() => {
+    if (hideArchivedSpaces) {
+      return filteredSpaces.filter((space) => !isSpaceArchived(space));
+    }
+    return filteredSpaces;
+  }, [filteredSpaces, hideArchivedSpaces]);
+
   return (
     <div className="space-y-6">
-      <div className="justify-between items-center flex">
-        <Text className="text-4">My Spaces | {filteredSpaces.length}</Text>
-      </div>
+      <SectionFilter count={displayedSpaces.length} label="My Spaces">
+        <label className="flex items-center gap-1">
+          <Input
+            type="checkbox"
+            checked={hideArchivedSpaces}
+            onChange={(e) => setHideArchivedSpaces(e.target.checked)}
+            className="h-4 w-4"
+          />
+          <span>Hide archived spaces</span>
+        </label>
+      </SectionFilter>
       <SpaceCardList
         lang={lang}
-        spaces={filteredSpaces}
+        spaces={displayedSpaces}
         showLoadMore={showLoadMore}
         showExitButton={true}
       />
diff --git a/packages/epics/src/spaces/components/space-card-with-discoverability.tsx b/packages/epics/src/spaces/components/space-card-with-discoverability.tsx
index 631cceea5..37a95aa1e 100644
--- a/packages/epics/src/spaces/components/space-card-with-discoverability.tsx
+++ b/packages/epics/src/spaces/components/space-card-with-discoverability.tsx
@@ -1,6 +1,6 @@
 'use client';
 
-import { Space } from '@hypha-platform/core/client';
+import { Space, isSpaceArchived } from '@hypha-platform/core/client';
 import { SpaceCard } from './space-card';
 import {
   DEFAULT_SPACE_AVATAR_IMAGE,
@@ -40,6 +40,7 @@ export function SpaceCardWithDiscoverability({
         agreements={space.documentCount}
         isSandbox={space.flags?.includes('sandbox') ?? false}
         isDemo={space.flags?.includes('demo') ?? false}
+        isArchived={isSpaceArchived(space)}
         web3SpaceId={space.web3SpaceId as number}
         configPath={`${getHref(space.slug).replace(
           /\/+$/,
diff --git a/packages/epics/src/spaces/components/space-card.tsx b/packages/epics/src/spaces/components/space-card.tsx
index 9c0b0e785..ab3f3ec72 100644
--- a/packages/epics/src/spaces/components/space-card.tsx
+++ b/packages/epics/src/spaces/components/space-card.tsx
@@ -25,6 +25,7 @@ type SpaceCardProps = {
   leadImage?: string;
   isSandbox?: boolean;
   isDemo?: boolean;
+  isArchived?: boolean;
   configPath?: string;
   web3SpaceId?: number;
   createdAt: Date;
@@ -46,6 +47,7 @@ export const SpaceCard: React.FC<SpaceCardProps> = ({
   leadImage,
   isSandbox = false,
   isDemo = false,
+  isArchived = false,
   configPath,
   web3SpaceId,
   createdAt,
@@ -156,6 +158,7 @@ export const SpaceCard: React.FC<SpaceCardProps> = ({
               web3SpaceId={web3SpaceId}
               isSandbox={isSandbox}
               isDemo={isDemo}
+              isArchived={isArchived}
               configPath={configPath}
               className="ml-2"
             />
diff --git a/packages/epics/src/spaces/components/space-mode-label.tsx b/packages/epics/src/spaces/components/space-mode-label.tsx
index fa031dcb1..a5e1c800a 100644
--- a/packages/epics/src/spaces/components/space-mode-label.tsx
+++ b/packages/epics/src/spaces/components/space-mode-label.tsx
@@ -3,13 +3,13 @@
 import { useAuthentication } from '@hypha-platform/authentication';
 import { Badge } from '@hypha-platform/ui';
 import clsx from 'clsx';
-import Link from 'next/link';
 import { useSpaceMember } from '../hooks';
 import { useRouter } from 'next/navigation';
 
 interface SpaceModeLabelProps {
   isSandbox: boolean;
   isDemo: boolean;
+  isArchived: boolean;
   configPath?: string;
   web3SpaceId?: number;
   className?: string;
@@ -18,15 +18,17 @@ interface SpaceModeLabelProps {
 const LabelButton = ({
   caption,
   configPath,
+  colorVariant = 'accent',
 }: {
   caption: string;
   configPath: string;
+  colorVariant?: 'accent' | 'error';
 }) => {
   const router = useRouter();
   return (
     <Badge
       className="flex cursor-pointer"
-      colorVariant="accent"
+      colorVariant={colorVariant}
       variant="outline"
       role="link"
       title="Change Space Configuration"
@@ -48,8 +50,14 @@ const LabelButton = ({
     </Badge>
   );
 };
-const LabelBadge = ({ caption }: { caption: string }) => (
-  <Badge className="flex" colorVariant="accent" variant="outline">
+const LabelBadge = ({
+  caption,
+  colorVariant = 'accent',
+}: {
+  caption: string;
+  colorVariant?: 'accent' | 'error';
+}) => (
+  <Badge className="flex" colorVariant={colorVariant} variant="outline">
     {caption}
   </Badge>
 );
@@ -58,32 +66,46 @@ const MemberLabel = ({
   caption,
   web3SpaceId,
   configPath,
+  colorVariant = 'accent',
 }: {
   caption: string;
   web3SpaceId: number;
   configPath: string;
+  colorVariant?: 'accent' | 'error';
 }) => {
   const { isMember } = useSpaceMember({ spaceId: web3SpaceId });
   return isMember ? (
-    <LabelButton caption={caption} configPath={configPath} />
+    <LabelButton
+      caption={caption}
+      configPath={configPath}
+      colorVariant={colorVariant}
+    />
   ) : (
-    <LabelBadge caption={caption} />
+    <LabelBadge caption={caption} colorVariant={colorVariant} />
   );
 };
 
 export const SpaceModeLabel = ({
   isSandbox,
   isDemo,
+  isArchived,
   configPath,
   web3SpaceId,
   className,
 }: SpaceModeLabelProps) => {
   const { isAuthenticated } = useAuthentication();
-  const isLive = !isSandbox && !isDemo;
+  const isLive = !isSandbox && !isDemo && !isArchived;
   if (isLive) {
     return null;
   }
-  const caption = isSandbox ? 'Sandbox' : isDemo ? 'Pilot' : '';
+  const caption = isSandbox
+    ? 'Sandbox'
+    : isDemo
+    ? 'Pilot'
+    : isArchived
+    ? 'Archived'
+    : '';
+  const colorVariant = isArchived ? 'error' : 'accent';
   return (
     <div className={clsx('flex', className)}>
       {isAuthenticated && !!configPath && Number.isFinite(web3SpaceId) ? (
@@ -91,9 +113,10 @@ export const SpaceModeLabel = ({
           caption={caption}
           web3SpaceId={web3SpaceId as number}
           configPath={configPath}
+          colorVariant={colorVariant}
         />
       ) : (
-        <LabelBadge caption={caption} />
+        <LabelBadge caption={caption} colorVariant={colorVariant} />
       )}
     </div>
   );
diff --git a/packages/storage-postgres/src/schema/flags.ts b/packages/storage-postgres/src/schema/flags.ts
index ce4124ed6..6bd6d2e5e 100644
--- a/packages/storage-postgres/src/schema/flags.ts
+++ b/packages/storage-postgres/src/schema/flags.ts
@@ -1,4 +1,4 @@
 import { pgEnum } from 'drizzle-orm/pg-core';
 
-export const SPACE_FLAGS = ['sandbox', 'demo'] as const;
+export const SPACE_FLAGS = ['sandbox', 'demo', 'archived'] as const;
 export const spaceFlags = pgEnum('space_flags', SPACE_FLAGS);