diff --git a/src/components/moderation/ModerationQueue.tsx b/src/components/moderation/ModerationQueue.tsx
index 8b9f1cc6..07fe48ca 100644
--- a/src/components/moderation/ModerationQueue.tsx
+++ b/src/components/moderation/ModerationQueue.tsx
@@ -24,6 +24,7 @@ import { Progress } from '@/components/ui/progress';
 import { QueueStatsDashboard } from './QueueStatsDashboard';
 import { EscalationDialog } from './EscalationDialog';
 import { ReassignDialog } from './ReassignDialog';
+import { smartMergeArray } from '@/lib/smartStateUpdate';
 
 interface ModerationItem {
   id: string;
@@ -75,15 +76,24 @@ export const ModerationQueue = forwardRef<ModerationQueueRef>((props, ref) => {
   const [escalationDialogOpen, setEscalationDialogOpen] = useState(false);
   const [reassignDialogOpen, setReassignDialogOpen] = useState(false);
   const [selectedItemForAction, setSelectedItemForAction] = useState<ModerationItem | null>(null);
+  const [interactingWith, setInteractingWith] = useState<Set<string>>(new Set());
+  const [newItemsCount, setNewItemsCount] = useState(0);
   const { toast } = useToast();
   const { isAdmin, isSuperuser } = useUserRole();
   const { user } = useAuth();
   const queue = useModerationQueue();
 
   // Get admin settings for polling configuration
-  const { getAdminPanelRefreshMode, getAdminPanelPollInterval } = useAdminSettings();
+  const { 
+    getAdminPanelRefreshMode, 
+    getAdminPanelPollInterval,
+    getAutoRefreshStrategy,
+    getPreserveInteractionState 
+  } = useAdminSettings();
   const refreshMode = getAdminPanelRefreshMode();
   const pollInterval = getAdminPanelPollInterval();
+  const refreshStrategy = getAutoRefreshStrategy();
+  const preserveInteraction = getPreserveInteractionState();
 
   // Expose refresh method via ref
   useImperativeHandle(ref, () => ({
@@ -346,7 +356,39 @@ export const ModerationQueue = forwardRef<ModerationQueueRef>((props, ref) => {
       // Sort by creation date (newest first for better UX)
       formattedItems.sort((a, b) => new Date(b.created_at).getTime() - new Date(a.created_at).getTime());
       
-      setItems(formattedItems);
+      // Use smart merging for silent refreshes if strategy is 'merge'
+      if (silent && refreshStrategy === 'merge') {
+        const mergeResult = smartMergeArray(items, formattedItems, {
+          compareFields: ['status', 'reviewed_at', 'reviewer_notes'],
+          preserveOrder: true,
+          addToTop: true,
+        });
+
+        // If there are changes and we should preserve interaction
+        if (mergeResult.hasChanges) {
+          // Filter out items user is interacting with
+          const protectedIds = preserveInteraction ? interactingWith : new Set<string>();
+          const mergedWithProtection = mergeResult.items.map(item => {
+            if (protectedIds.has(item.id)) {
+              // Find and preserve the current version of this item
+              const currentItem = items.find(i => i.id === item.id);
+              return currentItem || item;
+            }
+            return item;
+          });
+
+          setItems(mergedWithProtection);
+          
+          // Update new items count
+          if (mergeResult.changes.added.length > 0) {
+            setNewItemsCount(prev => prev + mergeResult.changes.added.length);
+          }
+        }
+      } else {
+        // Full replacement for non-silent refreshes or 'replace' strategy
+        setItems(formattedItems);
+        setNewItemsCount(0);
+      }
     } catch (error: any) {
       console.error('Error fetching moderation items:', error);
       console.error('Error details:', {
@@ -1985,6 +2027,24 @@ export const ModerationQueue = forwardRef<ModerationQueueRef>((props, ref) => {
         </div>
       )}
 
+      {/* New Items Notification */}
+      {newItemsCount > 0 && (
+        <div className="flex items-center justify-center">
+          <Button
+            variant="outline"
+            size="sm"
+            onClick={() => {
+              setNewItemsCount(0);
+              fetchItems(activeEntityFilter, activeStatusFilter, false);
+            }}
+            className="flex items-center gap-2 border-primary/50 bg-primary/5 hover:bg-primary/10"
+          >
+            <RefreshCw className="w-4 h-4" />
+            Show {newItemsCount} new {newItemsCount === 1 ? 'item' : 'items'}
+          </Button>
+        </div>
+      )}
+
       {/* Queue Content */}
       <QueueContent />
       
diff --git a/src/components/moderation/RecentActivity.tsx b/src/components/moderation/RecentActivity.tsx
index c9f806e1..9b6a91de 100644
--- a/src/components/moderation/RecentActivity.tsx
+++ b/src/components/moderation/RecentActivity.tsx
@@ -5,6 +5,8 @@ import { useToast } from '@/hooks/use-toast';
 import { ActivityCard } from './ActivityCard';
 import { Skeleton } from '@/components/ui/skeleton';
 import { Activity as ActivityIcon } from 'lucide-react';
+import { smartMergeArray } from '@/lib/smartStateUpdate';
+import { useAdminSettings } from '@/hooks/useAdminSettings';
 
 interface ActivityItem {
   id: string;
@@ -28,18 +30,25 @@ export interface RecentActivityRef {
 export const RecentActivity = forwardRef<RecentActivityRef>((props, ref) => {
   const [activities, setActivities] = useState<ActivityItem[]>([]);
   const [loading, setLoading] = useState(true);
+  const [isSilentRefresh, setIsSilentRefresh] = useState(false);
   const { user } = useAuth();
   const { toast } = useToast();
+  const { getAutoRefreshStrategy } = useAdminSettings();
+  const refreshStrategy = getAutoRefreshStrategy();
 
   useImperativeHandle(ref, () => ({
-    refresh: fetchRecentActivity
+    refresh: () => fetchRecentActivity(false)
   }));
 
-  const fetchRecentActivity = async () => {
+  const fetchRecentActivity = async (silent = false) => {
     if (!user) return;
 
     try {
-      setLoading(true);
+      if (!silent) {
+        setLoading(true);
+      } else {
+        setIsSilentRefresh(true);
+      }
 
       // Fetch recent approved/rejected submissions
       const { data: submissions, error: submissionsError } = await supabase
@@ -124,7 +133,23 @@ export const RecentActivity = forwardRef<RecentActivityRef>((props, ref) => {
         new Date(b.timestamp).getTime() - new Date(a.timestamp).getTime()
       );
 
-      setActivities(allActivities.slice(0, 20)); // Keep top 20 most recent
+      const recentActivities = allActivities.slice(0, 20); // Keep top 20 most recent
+
+      // Use smart merging for silent refreshes if strategy is 'merge'
+      if (silent && refreshStrategy === 'merge') {
+        const mergeResult = smartMergeArray(activities, recentActivities, {
+          compareFields: ['timestamp', 'action'],
+          preserveOrder: false,
+          addToTop: true,
+        });
+
+        if (mergeResult.hasChanges) {
+          setActivities(mergeResult.items);
+        }
+      } else {
+        // Full replacement for non-silent refreshes or 'replace' strategy
+        setActivities(recentActivities);
+      }
     } catch (error: any) {
       console.error('Error fetching recent activity:', error);
       toast({
@@ -133,12 +158,15 @@ export const RecentActivity = forwardRef<RecentActivityRef>((props, ref) => {
         variant: "destructive",
       });
     } finally {
-      setLoading(false);
+      if (!silent) {
+        setLoading(false);
+      }
+      setIsSilentRefresh(false);
     }
   };
 
   useEffect(() => {
-    fetchRecentActivity();
+    fetchRecentActivity(false);
   }, [user]);
 
   if (loading) {
diff --git a/src/components/moderation/ReportsQueue.tsx b/src/components/moderation/ReportsQueue.tsx
index b07642f4..0e7f28e0 100644
--- a/src/components/moderation/ReportsQueue.tsx
+++ b/src/components/moderation/ReportsQueue.tsx
@@ -10,6 +10,7 @@ import { useToast } from '@/hooks/use-toast';
 import { format } from 'date-fns';
 import { useAdminSettings } from '@/hooks/useAdminSettings';
 import { useAuth } from '@/hooks/useAuth';
+import { smartMergeArray } from '@/lib/smartStateUpdate';
 
 interface Report {
   id: string;
@@ -49,13 +50,19 @@ export const ReportsQueue = forwardRef<ReportsQueueRef>((props, ref) => {
   const [loading, setLoading] = useState(true);
   const [isInitialLoad, setIsInitialLoad] = useState(true);
   const [actionLoading, setActionLoading] = useState<string | null>(null);
+  const [newReportsCount, setNewReportsCount] = useState(0);
   const { toast } = useToast();
   const { user } = useAuth();
 
   // Get admin settings for polling configuration
-  const { getAdminPanelRefreshMode, getAdminPanelPollInterval } = useAdminSettings();
+  const { 
+    getAdminPanelRefreshMode, 
+    getAdminPanelPollInterval,
+    getAutoRefreshStrategy 
+  } = useAdminSettings();
   const refreshMode = getAdminPanelRefreshMode();
   const pollInterval = getAdminPanelPollInterval();
+  const refreshStrategy = getAutoRefreshStrategy();
 
   // Expose refresh method via ref
   useImperativeHandle(ref, () => ({
@@ -120,7 +127,27 @@ export const ReportsQueue = forwardRef<ReportsQueueRef>((props, ref) => {
         })
       );
 
-      setReports(reportsWithContent);
+      // Use smart merging for silent refreshes if strategy is 'merge'
+      if (silent && refreshStrategy === 'merge') {
+        const mergeResult = smartMergeArray(reports, reportsWithContent, {
+          compareFields: ['status'],
+          preserveOrder: true,
+          addToTop: true,
+        });
+
+        if (mergeResult.hasChanges) {
+          setReports(mergeResult.items);
+          
+          // Update new reports count
+          if (mergeResult.changes.added.length > 0) {
+            setNewReportsCount(prev => prev + mergeResult.changes.added.length);
+          }
+        }
+      } else {
+        // Full replacement for non-silent refreshes or 'replace' strategy
+        setReports(reportsWithContent);
+        setNewReportsCount(0);
+      }
     } catch (error) {
       console.error('Error fetching reports:', error);
       toast({
@@ -213,6 +240,24 @@ export const ReportsQueue = forwardRef<ReportsQueueRef>((props, ref) => {
 
   return (
     <div className="space-y-6">
+      {/* New Reports Notification */}
+      {newReportsCount > 0 && (
+        <div className="flex items-center justify-center">
+          <Button
+            variant="outline"
+            size="sm"
+            onClick={() => {
+              setNewReportsCount(0);
+              fetchReports(false);
+            }}
+            className="flex items-center gap-2 border-destructive/50 bg-destructive/5 hover:bg-destructive/10"
+          >
+            <Flag className="w-4 h-4" />
+            Show {newReportsCount} new {newReportsCount === 1 ? 'report' : 'reports'}
+          </Button>
+        </div>
+      )}
+
       {reports.map((report) => (
         <Card key={report.id} className="border-l-4 border-l-red-500">
           <CardHeader className="pb-4">
diff --git a/src/hooks/useAdminSettings.ts b/src/hooks/useAdminSettings.ts
index 882f53aa..d5f3ac2c 100644
--- a/src/hooks/useAdminSettings.ts
+++ b/src/hooks/useAdminSettings.ts
@@ -126,6 +126,30 @@ export function useAdminSettings() {
     return parseInt(value?.toString() || '30') * 1000; // Convert to milliseconds
   };
 
+  /**
+   * Get auto-refresh strategy setting
+   * Returns: 'merge' | 'replace' | 'notify'
+   */
+  const getAutoRefreshStrategy = (): 'merge' | 'replace' | 'notify' => {
+    const value = getSettingValue('auto_refresh_strategy', 'merge');
+    const cleanValue = typeof value === 'string' ? value.replace(/"/g, '') : value;
+    return cleanValue as 'merge' | 'replace' | 'notify';
+  };
+
+  /**
+   * Get preserve interaction state setting
+   * Returns: boolean
+   */
+  const getPreserveInteractionState = (): boolean => {
+    const value = getSettingValue('preserve_interaction_state', 'true');
+    const cleanValue = typeof value === 'string' ? value.replace(/"/g, '') : value;
+    return cleanValue === 'true' || cleanValue === true;
+  };
+
+  const getNotificationRecipients = () => {
+    return getSettingValue('notifications.recipients', []);
+  };
+
   return {
     settings,
     isLoading,
@@ -140,10 +164,13 @@ export function useAdminSettings() {
     getRequireApproval,
     getBanDurations,
     getEmailAlertsEnabled,
+    getNotificationRecipients,
     getReportThreshold,
     getAuditRetentionDays,
     getAutoCleanupEnabled,
     getAdminPanelRefreshMode,
     getAdminPanelPollInterval,
+    getAutoRefreshStrategy,
+    getPreserveInteractionState,
   };
 }
\ No newline at end of file
diff --git a/supabase/migrations/20251006183359_7162757b-0dab-4e64-9394-4f99ab0a4877.sql b/supabase/migrations/20251006183359_7162757b-0dab-4e64-9394-4f99ab0a4877.sql
new file mode 100644
index 00000000..f464996c
--- /dev/null
+++ b/supabase/migrations/20251006183359_7162757b-0dab-4e64-9394-4f99ab0a4877.sql
@@ -0,0 +1,6 @@
+-- Add admin settings for non-disruptive auto-refresh
+INSERT INTO admin_settings (setting_key, setting_value, category, description)
+VALUES 
+  ('auto_refresh_strategy', '"merge"', 'admin_panel', 'Auto-refresh strategy: merge (silently merge new items), replace (current behavior - full replacement), notify (show notification only)'),
+  ('preserve_interaction_state', '"true"', 'admin_panel', 'Whether to preserve user interaction state during auto-refresh (expanded items, typing in notes, etc.)')
+ON CONFLICT (setting_key) DO NOTHING;
\ No newline at end of file