diff --git a/app/modifiers/tooltip.js b/app/modifiers/tooltip.js
index 97a6123..abeca75 100644
--- a/app/modifiers/tooltip.js
+++ b/app/modifiers/tooltip.js
@@ -16,17 +16,30 @@ export default modifier((element) => {
 
     const rect = element.getBoundingClientRect();
     const tipRect = tooltipEl.getBoundingClientRect();
-    const margin = 6;
-    let top = rect.top - tipRect.height - margin;
-    if (top < margin) top = rect.bottom + margin;
+    const arrowSize = 6;
+
+    // Vertical placement: above trigger, flip below if no room
+    let placement = 'top';
+    let top = rect.top - tipRect.height - arrowSize;
+    if (top < arrowSize) {
+      placement = 'bottom';
+      top = rect.bottom + arrowSize;
+    }
+
+    // Horizontal: center on trigger, clamp to viewport
     let left = rect.left + rect.width / 2 - tipRect.width / 2;
     left = Math.max(
-      margin,
-      Math.min(left, window.innerWidth - tipRect.width - margin)
+      arrowSize,
+      Math.min(left, window.innerWidth - tipRect.width - arrowSize)
     );
 
+    // Arrow always points at trigger center, even when clamped
+    const arrowLeft = rect.left + rect.width / 2 - left;
+
+    tooltipEl.dataset.placement = placement;
     tooltipEl.style.top = `${top}px`;
     tooltipEl.style.left = `${left}px`;
+    tooltipEl.style.setProperty('--arrow-left', `${arrowLeft}px`);
   };
 
   const hide = () => {
diff --git a/app/styles/app.css b/app/styles/app.css
index ea36721..54c8e6a 100644
--- a/app/styles/app.css
+++ b/app/styles/app.css
@@ -728,6 +728,26 @@ body {
   animation: tooltip-fade-in 0.15s ease;
 }
 
+.tooltip::after {
+  content: '';
+  position: absolute;
+  width: 0;
+  height: 0;
+  border: 6px solid transparent;
+  left: var(--arrow-left, 50%);
+  transform: translateX(-50%);
+}
+
+.tooltip[data-placement='top']::after {
+  top: 100%;
+  border-top-color: var(--body-text-color);
+}
+
+.tooltip[data-placement='bottom']::after {
+  bottom: 100%;
+  border-bottom-color: var(--body-text-color);
+}
+
 @keyframes tooltip-fade-in {
   from {
     opacity: 0;
diff --git a/tests/integration/components/app-menu/settings/nostr-test.gjs b/tests/integration/components/app-menu/settings/nostr-test.gjs
index de13829..dbe59b7 100644
--- a/tests/integration/components/app-menu/settings/nostr-test.gjs
+++ b/tests/integration/components/app-menu/settings/nostr-test.gjs
@@ -293,9 +293,30 @@ module('Integration | Component | app-menu/settings/nostr', function (hooks) {
     removeBtn.dispatchEvent(new MouseEvent('mouseenter', { bubbles: true }));
     await settled();
 
+    const tooltip = document.body.querySelector('.tooltip');
     assert.dom('.tooltip', document.body).exists('tooltip appears on hover');
     assert.dom('.tooltip', document.body).hasText('Remove relay');
 
+    // Verify arrow is rendered
+    assert.ok(tooltip.dataset.placement, 'tooltip has placement attribute');
+    const arrowStyle = getComputedStyle(tooltip, '::after');
+    assert.strictEqual(arrowStyle.content, '""', 'arrow pseudo-element exists');
+
+    // Verify arrow points in correct direction based on placement
+    if (tooltip.dataset.placement === 'top') {
+      assert.notStrictEqual(
+        arrowStyle.borderTopColor,
+        'rgba(0, 0, 0, 0)',
+        'arrow points down when tooltip is above trigger'
+      );
+    } else {
+      assert.notStrictEqual(
+        arrowStyle.borderBottomColor,
+        'rgba(0, 0, 0, 0)',
+        'arrow points up when tooltip is below trigger'
+      );
+    }
+
     removeBtn.dispatchEvent(new MouseEvent('mouseleave', { bubbles: true }));
     await settled();