diff --git a/apps/api/Dockerfile b/apps/api/Dockerfile
index 6ae897f96..39a92ca75 100644
--- a/apps/api/Dockerfile
+++ b/apps/api/Dockerfile
@@ -30,6 +30,7 @@ COPY apps/dashboard/ dashboard/
 COPY apps/libs/runner-api-client/ libs/runner-api-client/
 COPY apps/libs/api-client/ libs/api-client/
 COPY apps/libs/analytics-api-client/ libs/analytics-api-client/
+COPY apps/libs/box-name/ libs/box-name/
 
 RUN yarn nx build api --configuration=production --nxBail=true --output-style=stream && node --check dist/apps/api/main.js
 
diff --git a/apps/api/src/box/utils/box-name-generator.ts b/apps/api/src/box/utils/box-name-generator.ts
index a66c8624c..b17220f1b 100644
--- a/apps/api/src/box/utils/box-name-generator.ts
+++ b/apps/api/src/box/utils/box-name-generator.ts
@@ -1,48 +1,14 @@
-// Default box-name generator. Shape: "{adjective}-{animal}", e.g. "cozy-otter".
-//
-// Names are kept clean in the common case. On the rare collision with the
-// per-org @Unique(['organizationId', 'name']) constraint, the caller falls back
-// to "{adjective}-{animal}-{boxId}" (see persistWithGeneratedBoxName) — the box
+// Default box-name generation. The word lists and the "{adjective}-{animal}"
+// generator live in the shared @boxlite-ai/box-name lib (also used by the
+// dashboard's create dialog); this module adds the persistence-side collision
+// handling. On the rare collision with the per-org
+// @Unique(['organizationId', 'name']) constraint, the caller falls back to
+// "{adjective}-{animal}-{boxId}" (see persistWithGeneratedBoxName) — the box
 // id is unique by construction, so that single fallback can never collide.
 
-const ADJECTIVES = [
-  'agile', 'amber', 'astute', 'bold', 'bouncy', 'brave', 'breezy', 'brilliant', 'brisk', 'calm',
-  'cheery', 'clever', 'cosmic', 'cozy', 'crimson', 'crisp', 'dapper', 'daring', 'darting', 'deft',
-  'dreamy', 'dusky', 'eager', 'fierce', 'fluffy', 'fresh', 'gallant', 'gentle', 'gliding', 'glossy',
-  'golden', 'hearty', 'hovering', 'hushed', 'indigo', 'intrepid', 'ivory', 'jade', 'jaunty', 'jolly',
-  'jovial', 'keen', 'lively', 'lofty', 'lucid', 'lunar', 'mellow', 'mighty', 'mild', 'mystic',
-  'neat', 'nebular', 'nimble', 'opal', 'perky', 'placid', 'plucky', 'polished', 'prismatic', 'quick',
-  'radiant', 'savvy', 'serene', 'sharp', 'silver', 'sleek', 'snappy', 'snug', 'soaring', 'solar',
-  'sparkly', 'starry', 'swift', 'tidy', 'tranquil', 'valiant', 'vibrant', 'vivid', 'witty', 'zippy',
-] as const
+import { generateBoxName } from '@boxlite-ai/box-name'
 
-const ANIMALS = [
-  'alpaca', 'badger', 'bat', 'bear', 'beaver', 'bee', 'beluga', 'bluebird', 'bluejay', 'bobcat',
-  'bumblebee', 'bunny', 'butterfly', 'calf', 'canary', 'capybara', 'cardinal', 'cat', 'chameleon', 'chick',
-  'chickadee', 'chinchilla', 'chipmunk', 'cockatiel', 'corgi', 'cottontail', 'crab', 'cub', 'deer', 'dolphin',
-  'dove', 'dragonfly', 'duck', 'duckling', 'eagle', 'falcon', 'fawn', 'ferret', 'finch', 'firefly',
-  'flamingo', 'fox', 'frog', 'gecko', 'goldfinch', 'goose', 'gosling', 'guppy', 'hamster', 'hare',
-  'hawk', 'hedgehog', 'heron', 'hummingbird', 'joey', 'kangaroo', 'kit', 'kitten', 'koala', 'ladybug',
-  'lamb', 'lemur', 'llama', 'lovebird', 'lynx', 'magpie', 'manatee', 'marmot', 'meerkat', 'mole',
-  'mouse', 'narwhal', 'nightingale', 'ocelot', 'octopus', 'otter', 'owl', 'owlet', 'panda', 'parakeet',
-  'parrot', 'peacock', 'pelican', 'penguin', 'piglet', 'platypus', 'pony', 'porpoise', 'possum', 'puffin',
-  'pup', 'puppy', 'quokka', 'rabbit', 'raccoon', 'raven', 'robin', 'salamander', 'seahorse', 'seal',
-  'sheep', 'sloth', 'snail', 'sparrow', 'squirrel', 'starfish', 'stingray', 'swallow', 'swan', 'tadpole',
-  'tortoise', 'toucan', 'turtle', 'wallaby', 'walrus', 'whale', 'wolf', 'wombat', 'woodpecker', 'wren',
-] as const
-
-function pick<T>(arr: readonly T[]): T {
-  return arr[Math.floor(Math.random() * arr.length)]
-}
-
-/**
- * Generate a default box name like `cozy-otter`. Hyphen- (not underscore-)
- * separated and all-lowercase, so the clean name is a valid DNS label in case
- * box names ever become hostnames.
- */
-export function generateBoxName(): string {
-  return `${pick(ADJECTIVES)}-${pick(ANIMALS)}`
-}
+export { generateBoxName }
 
 // Postgres unique_violation — raised when a generated name hits the per-org
 // @Unique(['organizationId', 'name']) constraint.
diff --git a/apps/dashboard/src/components/Box/CreateBoxDialog.tsx b/apps/dashboard/src/components/Box/CreateBoxDialog.tsx
index c0953b140..5c07626fc 100644
--- a/apps/dashboard/src/components/Box/CreateBoxDialog.tsx
+++ b/apps/dashboard/src/components/Box/CreateBoxDialog.tsx
@@ -12,8 +12,9 @@ import { getBoxRouteId } from '@/lib/box-identity'
 import { handleApiError } from '@/lib/error-handling'
 import { cn } from '@/lib/utils'
 import type { Box } from '@boxlite-ai/api-client'
-import { ChevronDown, Plus } from '@/components/ui/icon'
+import { ChevronDown, Plus, RefreshCw } from '@/components/ui/icon'
 import { useEffect, useRef, useState } from 'react'
+import { useGeneratedBoxName } from './useGeneratedBoxName'
 import { generatePath, useNavigate } from 'react-router-dom'
 import { toast } from 'sonner'
 
@@ -234,10 +235,18 @@ export const CreateBoxDialog = ({
     if (limit != null && v < limit) setCapped((c) => (c[key] ? { ...c, [key]: false } : c))
   }
 
+  const { display: generatedName, isGenerating, generate, reset: resetName } = useGeneratedBoxName(setName)
+
+  // Hand the user a fresh generated name each time the dialog opens (it lands
+  // in the editable field via the reveal animation); clear on close.
   useEffect(() => {
     const wasOpen = wasOpenRef.current
     wasOpenRef.current = open
-    if (!open || wasOpen) return
+    if (!open) {
+      resetName()
+      return
+    }
+    if (wasOpen) return
 
     setName('')
     setImageRef(defaultImage.ref)
@@ -247,7 +256,8 @@ export const CreateBoxDialog = ({
     setAdvancedOpen(false)
     setSubmitting(false)
     setCapped({ cpu: false, memory: false, disk: false })
-  }, [open, defaultImage.ref, initialCpu, initialMemory, initialDisk])
+    generate()
+  }, [open, defaultImage.ref, initialCpu, initialMemory, initialDisk, generate, resetName])
 
   useEffect(() => {
     if (!open) return
@@ -295,7 +305,14 @@ export const CreateBoxDialog = ({
         navigate(generatePath(RoutePath.BOX_DETAILS, { boxId }))
       }
     } catch (error) {
-      handleApiError(error, 'Failed to create box')
+      // Name already taken in this org (client-side generation can collide) —
+      // deal a fresh name into the field so the next click succeeds.
+      if ((error as { response?: { status?: number } })?.response?.status === 409) {
+        toast.error('That name is already taken — here is a fresh one.')
+        generate()
+      } else {
+        handleApiError(error, 'Failed to create box')
+      }
     } finally {
       setSubmitting(false)
     }
@@ -331,13 +348,34 @@ export const CreateBoxDialog = ({
           {/* name */}
           <div className="flex flex-col gap-[9px]">
             <div className="font-mono text-[10px] uppercase tracking-[1.2px] text-muted-foreground">Name</div>
-            <input
-              value={name}
-              onChange={(e) => setName(e.target.value)}
-              placeholder="my-new-box"
-              aria-invalid={!nameValid}
-              className="w-full border border-border bg-card px-[13px] py-[11px] font-mono text-[13px] text-foreground outline-none focus:border-brand aria-[invalid=true]:border-destructive"
-            />
+            <div
+              className={cn(
+                'flex items-stretch border border-border bg-card focus-within:border-brand',
+                !nameValid && 'border-destructive',
+              )}
+            >
+              <input
+                value={isGenerating ? generatedName : name}
+                onChange={(e) => setName(e.target.value)}
+                readOnly={isGenerating}
+                placeholder="my-new-box"
+                aria-invalid={!nameValid}
+                className={cn(
+                  'min-w-0 flex-1 bg-transparent px-[13px] py-[11px] font-mono text-[13px] text-foreground outline-none',
+                  isGenerating && 'text-brand',
+                )}
+              />
+              <button
+                type="button"
+                onClick={() => generate()}
+                disabled={isGenerating}
+                title="Suggest another name"
+                aria-label="Suggest another name"
+                className="flex w-11 flex-none items-center justify-center border-l border-border text-muted-foreground transition-colors enabled:hover:text-foreground disabled:opacity-40 sm:w-10"
+              >
+                <RefreshCw className={cn('size-3.5', isGenerating && 'animate-spin')} />
+              </button>
+            </div>
           </div>
 
           {/* image */}
@@ -440,7 +478,7 @@ export const CreateBoxDialog = ({
           <button
             type="button"
             onClick={handleCreate}
-            disabled={submitting || !selectedOrganization?.id || !nameValid}
+            disabled={submitting || isGenerating || !selectedOrganization?.id || !nameValid}
             className="bg-primary px-5 py-[11px] text-[13px] font-semibold text-primary-foreground transition-opacity hover:opacity-85 focus-visible:outline-none focus-visible:ring-2 focus-visible:ring-brand/35 disabled:cursor-not-allowed disabled:opacity-50 sm:py-[10px]"
           >
             {submitting ? 'Creating…' : 'Create Box'}
diff --git a/apps/dashboard/src/components/Box/useGeneratedBoxName.ts b/apps/dashboard/src/components/Box/useGeneratedBoxName.ts
new file mode 100644
index 000000000..c14f5dfa7
--- /dev/null
+++ b/apps/dashboard/src/components/Box/useGeneratedBoxName.ts
@@ -0,0 +1,57 @@
+/*
+ * Copyright 2025 Daytona Platforms Inc.
+ * Modified by BoxLite AI, 2025-2026
+ * SPDX-License-Identifier: AGPL-3.0
+ */
+
+import { useCallback, useEffect, useRef, useState } from 'react'
+import { generateBoxName } from '@boxlite-ai/box-name'
+import { scrambleFrame } from '@/lib/scramble'
+
+const REVEAL_MS = 460 // duration of the left-to-right lock-in
+const FRAME_MS = 42 // animation tick
+
+// Generates a box name locally (shared @boxlite-ai/box-name lib — the same
+// generator the server uses for unnamed creates) and reveals it with a
+// "decode" animation, so the name feels handed to the user rather than typed.
+// `onName` receives the final name; the dialog stores it as the editable field
+// value, not a placeholder.
+export function useGeneratedBoxName(onName: (name: string) => void) {
+  const [display, setDisplay] = useState('')
+  const [isGenerating, setIsGenerating] = useState(false)
+  const timer = useRef<ReturnType<typeof setInterval> | undefined>(undefined)
+  const onNameRef = useRef(onName)
+  onNameRef.current = onName
+
+  const clearTimer = () => {
+    if (timer.current) clearInterval(timer.current)
+    timer.current = undefined
+  }
+
+  const generate = useCallback(() => {
+    clearTimer()
+    const name = generateBoxName()
+    setIsGenerating(true)
+    const start = Date.now()
+    setDisplay(scrambleFrame(name, 0))
+    timer.current = setInterval(() => {
+      const progress = Math.min(1, (Date.now() - start) / REVEAL_MS)
+      setDisplay(scrambleFrame(name, progress))
+      if (progress >= 1) {
+        clearTimer()
+        setIsGenerating(false)
+        onNameRef.current(name)
+      }
+    }, FRAME_MS)
+  }, [])
+
+  const reset = useCallback(() => {
+    clearTimer()
+    setDisplay('')
+    setIsGenerating(false)
+  }, [])
+
+  useEffect(() => clearTimer, [])
+
+  return { display, isGenerating, generate, reset }
+}
diff --git a/apps/dashboard/src/lib/scramble.test.ts b/apps/dashboard/src/lib/scramble.test.ts
new file mode 100644
index 000000000..75dcbdee1
--- /dev/null
+++ b/apps/dashboard/src/lib/scramble.test.ts
@@ -0,0 +1,21 @@
+import { describe, expect, it } from 'vitest'
+
+import { scrambleFrame } from './scramble'
+
+describe('scrambleFrame', () => {
+  it('reveals the whole target once progress reaches 1', () => {
+    expect(scrambleFrame('cozy-otter', 1)).toBe('cozy-otter')
+    expect(scrambleFrame('cozy-otter', 5)).toBe('cozy-otter')
+  })
+
+  it('locks a left-to-right prefix proportional to progress', () => {
+    // 10-char target, 0.5 progress -> first 5 chars revealed.
+    expect(scrambleFrame('cozy-otter', 0.5).slice(0, 5)).toBe('cozy-')
+  })
+
+  it('keeps the target length and box-name charset while scrambling', () => {
+    const frame = scrambleFrame('cozy-otter', 0)
+    expect(frame).toHaveLength('cozy-otter'.length)
+    expect(frame).toMatch(/^[a-z-]+$/)
+  })
+})
diff --git a/apps/dashboard/src/lib/scramble.ts b/apps/dashboard/src/lib/scramble.ts
new file mode 100644
index 000000000..8d631400a
--- /dev/null
+++ b/apps/dashboard/src/lib/scramble.ts
@@ -0,0 +1,20 @@
+/*
+ * Copyright 2025 Daytona Platforms Inc.
+ * Modified by BoxLite AI, 2025-2026
+ * SPDX-License-Identifier: AGPL-3.0
+ */
+
+// One frame of a left-to-right "decode" reveal, used by the create-box name
+// field while a generated name locks in. The first `progress` fraction of
+// characters are locked to `target`; the rest are random glyphs from the box-name
+// alphabet. progress <= 0 → fully scrambled (same length); progress >= 1 → target.
+const GLYPHS = 'abcdefghijklmnopqrstuvwxyz-'
+
+export function scrambleFrame(target: string, progress: number): string {
+  const revealed = Math.max(0, Math.min(target.length, Math.floor(progress * target.length)))
+  let out = ''
+  for (let i = 0; i < target.length; i++) {
+    out += i < revealed ? target[i] : GLYPHS[Math.floor(Math.random() * GLYPHS.length)]
+  }
+  return out
+}
diff --git a/apps/dashboard/tsconfig.app.json b/apps/dashboard/tsconfig.app.json
index 5a005ae29..8d6903a0a 100644
--- a/apps/dashboard/tsconfig.app.json
+++ b/apps/dashboard/tsconfig.app.json
@@ -11,7 +11,8 @@
       "@/*": ["src/*"],
       "@boxlite-ai/*": ["../libs/*"],
       "@boxlite-ai/api-client": ["../dist/libs/api-client/src/index.d.ts"],
-      "@boxlite-ai/analytics-api-client": ["../dist/libs/analytics-api-client/src/index.d.ts"]
+      "@boxlite-ai/analytics-api-client": ["../dist/libs/analytics-api-client/src/index.d.ts"],
+      "@boxlite-ai/box-name": ["../libs/box-name/src/index.ts"]
     }
   },
   "exclude": [
diff --git a/apps/libs/box-name/package.json b/apps/libs/box-name/package.json
new file mode 100644
index 000000000..3b985de1f
--- /dev/null
+++ b/apps/libs/box-name/package.json
@@ -0,0 +1,8 @@
+{
+  "name": "@boxlite-ai/box-name",
+  "version": "0.0.0-dev",
+  "description": "Shared default box-name generator (word lists + generateBoxName)",
+  "private": true,
+  "main": "./src/index.ts",
+  "types": "./src/index.ts"
+}
diff --git a/apps/libs/box-name/project.json b/apps/libs/box-name/project.json
new file mode 100644
index 000000000..0773dd2bd
--- /dev/null
+++ b/apps/libs/box-name/project.json
@@ -0,0 +1,7 @@
+{
+  "name": "box-name",
+  "$schema": "../../node_modules/nx/schemas/project-schema.json",
+  "sourceRoot": "libs/box-name/src",
+  "projectType": "library",
+  "targets": {}
+}
diff --git a/apps/libs/box-name/src/index.ts b/apps/libs/box-name/src/index.ts
new file mode 100644
index 000000000..62a146720
--- /dev/null
+++ b/apps/libs/box-name/src/index.ts
@@ -0,0 +1,49 @@
+/*
+ * Copyright 2025 Daytona Platforms Inc.
+ * Modified by BoxLite AI, 2025-2026
+ * SPDX-License-Identifier: AGPL-3.0
+ */
+
+// Single source of truth for default box names, shared by the api (assigns a
+// name when a create request has none) and the dashboard (pre-fills the same
+// style of name in the create dialog). Keep it dependency-free: it is consumed
+// as source on both sides.
+
+export const BOX_NAME_ADJECTIVES = [
+  'agile', 'amber', 'astute', 'bold', 'bouncy', 'brave', 'breezy', 'brilliant', 'brisk', 'calm',
+  'cheery', 'clever', 'cosmic', 'cozy', 'crimson', 'crisp', 'dapper', 'daring', 'darting', 'deft',
+  'dreamy', 'dusky', 'eager', 'fierce', 'fluffy', 'fresh', 'gallant', 'gentle', 'gliding', 'glossy',
+  'golden', 'hearty', 'hovering', 'hushed', 'indigo', 'intrepid', 'ivory', 'jade', 'jaunty', 'jolly',
+  'jovial', 'keen', 'lively', 'lofty', 'lucid', 'lunar', 'mellow', 'mighty', 'mild', 'mystic',
+  'neat', 'nebular', 'nimble', 'opal', 'perky', 'placid', 'plucky', 'polished', 'prismatic', 'quick',
+  'radiant', 'savvy', 'serene', 'sharp', 'silver', 'sleek', 'snappy', 'snug', 'soaring', 'solar',
+  'sparkly', 'starry', 'swift', 'tidy', 'tranquil', 'valiant', 'vibrant', 'vivid', 'witty', 'zippy',
+] as const
+
+export const BOX_NAME_ANIMALS = [
+  'alpaca', 'badger', 'bat', 'bear', 'beaver', 'bee', 'beluga', 'bluebird', 'bluejay', 'bobcat',
+  'bumblebee', 'bunny', 'butterfly', 'calf', 'canary', 'capybara', 'cardinal', 'cat', 'chameleon', 'chick',
+  'chickadee', 'chinchilla', 'chipmunk', 'cockatiel', 'corgi', 'cottontail', 'crab', 'cub', 'deer', 'dolphin',
+  'dove', 'dragonfly', 'duck', 'duckling', 'eagle', 'falcon', 'fawn', 'ferret', 'finch', 'firefly',
+  'flamingo', 'fox', 'frog', 'gecko', 'goldfinch', 'goose', 'gosling', 'guppy', 'hamster', 'hare',
+  'hawk', 'hedgehog', 'heron', 'hummingbird', 'joey', 'kangaroo', 'kit', 'kitten', 'koala', 'ladybug',
+  'lamb', 'lemur', 'llama', 'lovebird', 'lynx', 'magpie', 'manatee', 'marmot', 'meerkat', 'mole',
+  'mouse', 'narwhal', 'nightingale', 'ocelot', 'octopus', 'otter', 'owl', 'owlet', 'panda', 'parakeet',
+  'parrot', 'peacock', 'pelican', 'penguin', 'piglet', 'platypus', 'pony', 'porpoise', 'possum', 'puffin',
+  'pup', 'puppy', 'quokka', 'rabbit', 'raccoon', 'raven', 'robin', 'salamander', 'seahorse', 'seal',
+  'sheep', 'sloth', 'snail', 'sparrow', 'squirrel', 'starfish', 'stingray', 'swallow', 'swan', 'tadpole',
+  'tortoise', 'toucan', 'turtle', 'wallaby', 'walrus', 'whale', 'wolf', 'wombat', 'woodpecker', 'wren',
+] as const
+
+function pick<T>(arr: readonly T[]): T {
+  return arr[Math.floor(Math.random() * arr.length)]
+}
+
+/**
+ * Generate a default box name like `cozy-otter`. Hyphen- (not underscore-)
+ * separated and all-lowercase, so the clean name is a valid DNS label in case
+ * box names ever become hostnames.
+ */
+export function generateBoxName(): string {
+  return `${pick(BOX_NAME_ADJECTIVES)}-${pick(BOX_NAME_ANIMALS)}`
+}
diff --git a/apps/tsconfig.base.json b/apps/tsconfig.base.json
index b70c75c95..c7512fba0 100644
--- a/apps/tsconfig.base.json
+++ b/apps/tsconfig.base.json
@@ -16,6 +16,7 @@
     "baseUrl": ".",
     "paths": {
       "@boxlite-ai/api-client": ["libs/api-client/src/index.ts"],
+      "@boxlite-ai/box-name": ["libs/box-name/src/index.ts"],
       "@boxlite-ai/runner-api-client": ["libs/runner-api-client/src/index.ts"],
       "@boxlite-ai/analytics-api-client": ["libs/analytics-api-client/src/index.ts"]
     }