diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 881e75e..823e9b0 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -15,10 +15,10 @@ jobs:
 
     steps:
       - name: Checkout repository
-        uses: actions/checkout@v4
+        uses: actions/checkout@v6
 
       - name: Setup Node.js
-        uses: actions/setup-node@v4
+        uses: actions/setup-node@v6
         with:
           node-version: '20'
           cache: 'npm'
@@ -42,7 +42,7 @@ jobs:
         run: npm run test:coverage
 
       - name: Upload coverage reports
-        uses: codecov/codecov-action@v4
+        uses: codecov/codecov-action@v6
         if: always()
         with:
           files: ./coverage/lcov.info
@@ -56,7 +56,7 @@ jobs:
         run: npm run build
 
       - name: Upload build artifacts
-        uses: actions/upload-artifact@v4
+        uses: actions/upload-artifact@v7
         with:
           name: dist
           path: dist/
diff --git a/.github/workflows/deploy.yml b/.github/workflows/deploy.yml
index edd0bd6..3395bfb 100644
--- a/.github/workflows/deploy.yml
+++ b/.github/workflows/deploy.yml
@@ -23,10 +23,10 @@ jobs:
 
     steps:
       - name: Checkout repository
-        uses: actions/checkout@v4
+        uses: actions/checkout@v6
 
       - name: Setup Node.js
-        uses: actions/setup-node@v4
+        uses: actions/setup-node@v6
         with:
           node-version: '20'
           cache: 'npm'
@@ -40,10 +40,10 @@ jobs:
           BASE_URL: /${{ github.event.repository.name }}/
 
       - name: Setup Pages
-        uses: actions/configure-pages@v4
+        uses: actions/configure-pages@v6
 
       - name: Upload artifact
-        uses: actions/upload-pages-artifact@v3
+        uses: actions/upload-pages-artifact@v5
         with:
           path: dist/
 
@@ -62,7 +62,7 @@ jobs:
     steps:
       - name: Deploy to GitHub Pages
         id: deployment
-        uses: actions/deploy-pages@v4
+        uses: actions/deploy-pages@v5
 
   e2e-test:
     name: E2E Tests
@@ -71,10 +71,10 @@ jobs:
 
     steps:
       - name: Checkout repository
-        uses: actions/checkout@v4
+        uses: actions/checkout@v6
 
       - name: Setup Node.js
-        uses: actions/setup-node@v4
+        uses: actions/setup-node@v6
         with:
           node-version: '20'
           cache: 'npm'
@@ -105,7 +105,7 @@ jobs:
           BASE_URL: ${{ needs.deploy.outputs.page_url }}
 
       - name: Upload test results
-        uses: actions/upload-artifact@v4
+        uses: actions/upload-artifact@v7
         if: always()
         with:
           name: playwright-report
diff --git a/src/components/exercises/ExerciseForm.tsx b/src/components/exercises/ExerciseForm.tsx
index 89d066f..59ce68a 100644
--- a/src/components/exercises/ExerciseForm.tsx
+++ b/src/components/exercises/ExerciseForm.tsx
@@ -123,6 +123,7 @@ export default function ExerciseForm({
 
   const handleSubmit = async (e: React.FormEvent) => {
     e.preventDefault();
+    e.stopPropagation();
     setError(null);
 
     if (!name.trim()) {
diff --git a/src/components/mesocycles/SplitDayEditor.tsx b/src/components/mesocycles/SplitDayEditor.tsx
index 8ea1fa7..fd82ea4 100644
--- a/src/components/mesocycles/SplitDayEditor.tsx
+++ b/src/components/mesocycles/SplitDayEditor.tsx
@@ -10,7 +10,7 @@ import type {
 } from '../../types/models';
 import ExerciseSelector from '../workouts/ExerciseSelector';
 import { isExerciseValidForSplitDay } from '../../lib/splitUtils';
-import { getExerciseWorkoutCount } from '../../db/service';
+import { getExerciseWorkoutCount, createExercise } from '../../db/service';
 import '../common/shared-dialog.css';
 import './SplitDayEditor.css';
 
@@ -38,13 +38,15 @@ export default function SplitDayEditor({
 
   const handleAddExercise = (exerciseId: string) => {
     const exercise = exercises.find((e) => e.id === exerciseId);
-    if (!exercise) return;
 
-    // Validate muscle groups
-    if (!isExerciseValidForSplitDay(exercise.muscleGroups, splitDay.name)) {
-      alert(
-        `Warning: ${exercise.name} may not be appropriate for ${splitDay.name}. The muscle groups don't match the split focus.`
-      );
+    // Validate muscle groups (only if exercise is in the current list;
+    // a newly created exercise may not have propagated yet via useLiveQuery)
+    if (exercise) {
+      if (!isExerciseValidForSplitDay(exercise.muscleGroups, splitDay.name)) {
+        alert(
+          `Warning: ${exercise.name} may not be appropriate for ${splitDay.name}. The muscle groups don't match the split focus.`
+        );
+      }
     }
 
     const newExercise: MesocycleExercise = {
@@ -63,6 +65,12 @@ export default function SplitDayEditor({
     setShowExerciseSelector(false);
   };
 
+  const handleCreateExercise = async (
+    exerciseData: Omit<Exercise, 'id' | 'createdAt'>
+  ): Promise<string> => {
+    return await createExercise(exerciseData);
+  };
+
   const handleRemoveExercise = async (index: number) => {
     const exercise = splitDay.exercises[index];
 
@@ -293,6 +301,7 @@ export default function SplitDayEditor({
           selectedExerciseIds={selectedExerciseIds}
           onSelect={handleAddExercise}
           onClose={() => setShowExerciseSelector(false)}
+          onCreateExercise={handleCreateExercise}
         />
       )}
     </div>
diff --git a/src/components/workouts/ExerciseSelector.css b/src/components/workouts/ExerciseSelector.css
index 132d9b9..d42a6bc 100644
--- a/src/components/workouts/ExerciseSelector.css
+++ b/src/components/workouts/ExerciseSelector.css
@@ -246,6 +246,34 @@
   color: #9ca3af;
 }
 
+/* Create New Exercise Button */
+.create-exercise-btn {
+  border-style: dashed !important;
+  border-color: #3b82f6 !important;
+  background: #eff6ff !important;
+}
+
+.create-exercise-btn:hover {
+  background: #dbeafe !important;
+  border-color: #2563eb !important;
+}
+
+.create-exercise-btn .exercise-item-name {
+  color: #3b82f6;
+}
+
+.create-exercise-btn .create-hint {
+  background-color: transparent;
+  color: #6b7280;
+  font-style: italic;
+}
+
+/* Exercise Form Portal - renders above ExerciseSelector (z-index: 1100) */
+.exercise-form-portal {
+  position: relative;
+  z-index: 1200;
+}
+
 /* Mobile Responsive */
 @media (max-width: 640px) {
   .modal-overlay {
diff --git a/src/components/workouts/ExerciseSelector.tsx b/src/components/workouts/ExerciseSelector.tsx
index c0f7ab9..9894246 100644
--- a/src/components/workouts/ExerciseSelector.tsx
+++ b/src/components/workouts/ExerciseSelector.tsx
@@ -3,7 +3,9 @@
  */
 
 import { useState, useEffect } from 'react';
+import { createPortal } from 'react-dom';
 import type { Exercise, MuscleGroup } from '../../types/models';
+import ExerciseForm from '../exercises/ExerciseForm';
 import './ExerciseSelector.css';
 
 interface ExerciseSelectorProps {
@@ -11,6 +13,9 @@ interface ExerciseSelectorProps {
   selectedExerciseIds: string[];
   onSelect: (exerciseId: string) => void;
   onClose: () => void;
+  onCreateExercise?: (
+    exercise: Omit<Exercise, 'id' | 'createdAt'>
+  ) => Promise<string>;
 }
 
 // Define muscle group categories for filtering
@@ -32,6 +37,7 @@ export default function ExerciseSelector({
   selectedExerciseIds,
   onSelect,
   onClose,
+  onCreateExercise,
 }: ExerciseSelectorProps) {
   const [searchQuery, setSearchQuery] = useState('');
   const [filterCategory, setFilterCategory] = useState<
@@ -39,6 +45,7 @@ export default function ExerciseSelector({
   >('all');
   const [filterMuscleGroup, setFilterMuscleGroup] =
     useState<MuscleGroupFilter>('all');
+  const [showCreateForm, setShowCreateForm] = useState(false);
 
   const filteredExercises = exercises.filter((exercise) => {
     const matchesSearch = exercise.name
@@ -129,6 +136,15 @@ export default function ExerciseSelector({
     onClose();
   };
 
+  const handleCreateExerciseSave = async (
+    exerciseData: Omit<Exercise, 'id' | 'createdAt'>
+  ) => {
+    if (!onCreateExercise) return;
+    const newId = await onCreateExercise(exerciseData);
+    setShowCreateForm(false);
+    onSelect(newId);
+  };
+
   // Lock body scroll when modal is open
   useEffect(() => {
     const originalStyle = window.getComputedStyle(document.body).overflow;
@@ -217,6 +233,26 @@ export default function ExerciseSelector({
           </div>
 
           <div className="exercise-list">
+            {onCreateExercise && (
+              <button
+                type="button"
+                onClick={() => setShowCreateForm(true)}
+                className="exercise-item create-exercise-btn"
+              >
+                <div className="exercise-item-header">
+                  <span className="exercise-item-icon">➕</span>
+                  <span className="exercise-item-name">
+                    Create New Exercise
+                  </span>
+                </div>
+                <div className="exercise-item-muscles">
+                  <span className="muscle-tag-small create-hint">
+                    Add a custom exercise to your library
+                  </span>
+                </div>
+              </button>
+            )}
+
             {filteredExercises.length === 0 && (
               <p className="no-results">
                 No exercises found. Try adjusting your search or filters.
@@ -246,6 +282,19 @@ export default function ExerciseSelector({
             ))}
           </div>
         </div>
+
+        {showCreateForm &&
+          onCreateExercise &&
+          createPortal(
+            <div className="exercise-form-portal">
+              <ExerciseForm
+                isOpen={showCreateForm}
+                onSave={handleCreateExerciseSave}
+                onCancel={() => setShowCreateForm(false)}
+              />
+            </div>,
+            document.body
+          )}
       </div>
     </div>
   );