diff --git a/src/generators/node/appExtensions.test.ts b/src/generators/node/appExtensions.test.ts
index f46e5c6..1980efe 100644
--- a/src/generators/node/appExtensions.test.ts
+++ b/src/generators/node/appExtensions.test.ts
@@ -153,9 +153,9 @@ describe('generateAppExtensions', () => {
 		await generateAppExtensions(tmpDir, options);
 
 		const app = await readFile(join(tmpDir, 'frontend/app-extension-ui/src/Panel.tsx'), 'utf-8');
-		expect(app).not.toContain('@pipedrive/app-extensions-sdk');
-		expect(app).not.toContain('OPEN_MODAL');
 		expect(app).not.toContain('CLOSE_MODAL');
+		expect(app).not.toContain('CUSTOM_MODAL');
+		expect(app).not.toContain('VITE_CUSTOM_MODAL_ACTION_ID');
 		expect(app).not.toContain('Open modal');
 		expect(app).not.toContain('Close modal');
 	});
diff --git a/src/generators/node/appExtensions/frontend.ts b/src/generators/node/appExtensions/frontend.ts
index cefc610..1547421 100644
--- a/src/generators/node/appExtensions/frontend.ts
+++ b/src/generators/node/appExtensions/frontend.ts
@@ -39,6 +39,8 @@ function viteConfigContent(): string {
 		export default defineConfig({
 			root,
 			base: '/extensions/',
+			// Load .env from the project root so VITE_* variables are available
+			envDir: '../../',
 			plugins: [react()],
 			build: {
 				outDir: 'dist',
@@ -172,15 +174,14 @@ function frontendTsConfig(): Record<string, unknown> {
 }
 
 function panelComponentContent(hasModal: boolean): string {
-	const sdkImportLine = hasModal ? "import { Command, Modal } from '@pipedrive/app-extensions-sdk';" : '';
-	const runSdkActionDestructure = hasModal ? ', runSdkAction' : '';
 	const openModalHandler = hasModal
 		? dedent`
 			async function openCustomModal(): Promise<void> {
-				await runSdkAction('Custom modal opened', (client) =>
+				await runSdkAction('Modal opened', (client) =>
 					client.execute(Command.OPEN_MODAL, {
 						type: Modal.CUSTOM_MODAL,
-						action_id: 'custom-modal',
+						// Replace with your Custom Modal's "Extension identifier" from Marketplace Developer Hub → App Extensions
+						action_id: import.meta.env.VITE_CUSTOM_MODAL_ACTION_ID,
 						data: { source: 'panel' },
 					}),
 				);
@@ -195,11 +196,10 @@ function panelComponentContent(hasModal: boolean): string {
 		`
 		: '';
 
-	const sdkImportPrefix = sdkImportLine ? sdkImportLine + '\n' : '';
-
 	return dedent`
 		import { useEffect } from 'react';
-		${sdkImportPrefix}import { usePipedriveSdk } from '../shared/pipedriveSdk';
+		import { Command, Modal } from '@pipedrive/app-extensions-sdk';
+		import { usePipedriveSdk } from '../shared/pipedriveSdk';
 
 		function formatQueryValue(key: string, value: string): string {
 			return /token|secret|code/i.test(key) ? 'Present' : value;
@@ -212,7 +212,7 @@ function panelComponentContent(hasModal: boolean): string {
 		}
 
 		export default function Panel() {
-			const { context, status, theme, visibility, pageState, lastAction, signedTokenPreview, isReady${runSdkActionDestructure}, actions } =
+			const { context, status, theme, visibility, pageState, lastAction, signedTokenPreview, isReady, runSdkAction, actions } =
 				usePipedriveSdk('panel');
 			const queryEntries = Object.entries(context.query);
 
@@ -220,6 +220,19 @@ function panelComponentContent(hasModal: boolean): string {
 				document.title = 'Custom Panel';
 			}, []);
 
+			async function logActivity(): Promise<void> {
+				const dealId = context.query.selectedIds ? parseInt(context.query.selectedIds) : undefined;
+				await runSdkAction('Activity logged', (client) =>
+					client.execute(Command.OPEN_MODAL, {
+						type: Modal.ACTIVITY,
+						prefill: {
+							subject: 'Follow-up',
+							...(dealId ? { deal: dealId } : {}),
+						},
+					}),
+				);
+			}
+
 			${openModalHandler}
 
 			if (!isReady && status !== 'Local preview') {
@@ -266,6 +279,9 @@ function panelComponentContent(hasModal: boolean): string {
 					</section>
 
 					<section className="toolbar" aria-label="SDK actions">
+						<button type="button" disabled={!isReady} onClick={logActivity}>
+							Log activity
+						</button>
 						<button type="button" disabled={!isReady} onClick={actions.showSnackbar}>
 							Snackbar
 						</button>
@@ -273,7 +289,7 @@ function panelComponentContent(hasModal: boolean): string {
 							Confirm
 						</button>
 						<button type="button" className="ghost" disabled={!isReady} onClick={actions.resize}>
-							Resize panel
+							{actions.isExpanded ? 'Collapse panel' : 'Expand panel'}
 						</button>
 						<button type="button" className="ghost" disabled={!isReady} onClick={actions.getSignedToken}>
 							Get token
@@ -403,7 +419,7 @@ function modalComponentContent(): string {
 							Confirm
 						</button>
 						<button type="button" className="ghost" disabled={!isReady} onClick={actions.resize}>
-							Resize modal
+							{actions.isExpanded ? 'Collapse modal' : 'Expand modal'}
 						</button>
 						<button type="button" className="ghost" disabled={!isReady} onClick={actions.getSignedToken}>
 							Get token
diff --git a/src/generators/node/appExtensions/sdk.ts b/src/generators/node/appExtensions/sdk.ts
index 814b2ae..5481fb9 100644
--- a/src/generators/node/appExtensions/sdk.ts
+++ b/src/generators/node/appExtensions/sdk.ts
@@ -191,10 +191,18 @@ export function sdkWrapperContent(): string {
 				if (response) setLastAction(response.confirmed ? 'Confirmed' : 'Cancelled');
 			}, [runSdkAction]);
 
+			const [isExpanded, setIsExpanded] = useState(false);
+
 			const resize = useCallback(async () => {
-				const size = surface === 'modal' ? { height: 480, width: 720 } : { height: 420 };
-				await runSdkAction('Resize requested', (client) => client.execute(Command.RESIZE, size));
-			}, [runSdkAction, surface]);
+				const nextExpanded = !isExpanded;
+				const size = surface === 'modal'
+					? (nextExpanded ? { height: 480, width: 720 } : { height: 420, width: 640 })
+					: (nextExpanded ? { height: 420 } : { height: 360 });
+				await runSdkAction(nextExpanded ? 'Expanded' : 'Collapsed', (client) =>
+					client.execute(Command.RESIZE, size),
+				);
+				setIsExpanded(nextExpanded);
+			}, [runSdkAction, surface, isExpanded]);
 
 			const getSignedToken = useCallback(async () => {
 				const response = await runSdkAction('Signed token received', (client) => client.execute(Command.GET_SIGNED_TOKEN));
@@ -220,6 +228,7 @@ export function sdkWrapperContent(): string {
 					showConfirmation,
 					resize,
 					getSignedToken,
+					isExpanded,
 				},
 			};
 		}
diff --git a/src/generators/node/database.ts b/src/generators/node/database.ts
index 5e2a898..4a5fa38 100644
--- a/src/generators/node/database.ts
+++ b/src/generators/node/database.ts
@@ -573,6 +573,7 @@ function buildAppExtensionUiService(): ComposeService {
 		build: { context: '.', dockerfile: 'Dockerfile.app-extension-ui' },
 		user: 'root',
 		command: nodeVolumeCommand(`${quietInstallCommand()} && npm run dev:frontend`),
+		env_file: ['.env'],
 		environment: { CHOKIDAR_USEPOLLING: 'true' },
 		ports: ['5173:5173'],
 		volumes: ['./package.json:/app/package.json:ro', 'app_extension_ui_node_modules:/app/node_modules'],
diff --git a/src/generators/node/projectBuilder.ts b/src/generators/node/projectBuilder.ts
index ce8056b..7d65f2a 100644
--- a/src/generators/node/projectBuilder.ts
+++ b/src/generators/node/projectBuilder.ts
@@ -226,6 +226,8 @@ function appExtensionEnvExample(options: GeneratorOptions): string {
 			'# Custom modal iframe URLs:',
 			'# Local: https://<your-vite-tunnel>/extensions/modal',
 			'# Production: https://<your-backend-domain>/extensions/modal',
+			'VITE_CUSTOM_MODAL_ACTION_ID=',
+			'# Paste the "Extension identifier" from Marketplace Developer Hub → App Extensions',
 		);
 	}