diff --git a/otp.c b/otp.c
index 21c6c60..723ff17 100644
--- a/otp.c
+++ b/otp.c
@@ -103,6 +103,9 @@ int handle_file_encrypt(void);
 // Enhanced input functions
 int get_filename_with_default(const char* prompt, const char* default_path, char* result, size_t result_size);
 
+// Directory display functions
+void get_directory_display(const char* file_path, char* result, size_t result_size);
+
 void print_usage(const char* program_name);
 
 int main(int argc, char* argv[]) {
@@ -2943,14 +2946,21 @@ int handle_pads_menu(void) {
     
     // Display pads with minimal prefixes underlined
     printf("\nAvailable pads:\n");
-    printf("%-20s %-12s %-12s %-8s\n", "ChkSum", "Size", "Used", "% Used");
-    printf("%-20s %-12s %-12s %-8s\n", "-------------------", "----------", "----------", "------");
+    printf("%-8s %-12s %-12s %-12s %-8s\n", "ChkSum", "Dir", "Size", "Used", "% Used");
+    printf("%-8s %-12s %-12s %-12s %-8s\n", "--------", "------------", "----------", "----------", "------");
     
     for (int i = 0; i < pad_count; i++) {
-        // Display checksum with prefix underlined
-        printf("\033[4m%.*s\033[0m%-*s %-12s %-12s %.1f%%\n",
+        // Get directory information for this pad
+        char full_path[300];
+        snprintf(full_path, sizeof(full_path), "%s/%s.pad", PADS_DIR, pads[i].chksum);
+        char dir_display[13]; // 12 chars + null terminator
+        get_directory_display(full_path, dir_display, sizeof(dir_display));
+        
+        // Display first 8 characters of checksum with prefix underlined
+        printf("\033[4m%.*s\033[0m%-*s %-12s %-12s %-12s %.1f%%\n",
                prefix_lengths[i], pads[i].chksum,  // Underlined prefix
-               20 - prefix_lengths[i], pads[i].chksum + prefix_lengths[i], // Rest of checksum with padding
+               8 - prefix_lengths[i], pads[i].chksum + prefix_lengths[i], // Rest of 8-char checksum
+               dir_display,
                pads[i].size_str,
                pads[i].used_str,
                pads[i].percentage);
@@ -3019,6 +3029,121 @@ int handle_pads_menu(void) {
     return handle_pads_menu();
 }
 
+void get_directory_display(const char* file_path, char* result, size_t result_size) {
+    // Extract directory path from full file path
+    char dir_path[512];
+    char* last_slash = strrchr(file_path, '/');
+    
+    if (last_slash) {
+        size_t dir_len = last_slash - file_path;
+        if (dir_len >= sizeof(dir_path)) {
+            dir_len = sizeof(dir_path) - 1;
+        }
+        strncpy(dir_path, file_path, dir_len);
+        dir_path[dir_len] = '\0';
+    } else {
+        // No directory separator, assume current directory
+        strcpy(dir_path, ".");
+    }
+    
+    // USB Drive Detection and Smart Shortening
+    char* home_dir = getenv("HOME");
+    
+    // Check for USB/removable media mount patterns
+    if (strstr(dir_path, "/media/") || strstr(dir_path, "/run/media/") || strstr(dir_path, "/mnt/")) {
+        // Extract USB label/name
+        char* media_start = NULL;
+        if (strstr(dir_path, "/media/")) {
+            media_start = strstr(dir_path, "/media/");
+        } else if (strstr(dir_path, "/run/media/")) {
+            media_start = strstr(dir_path, "/run/media/");
+        } else if (strstr(dir_path, "/mnt/")) {
+            media_start = strstr(dir_path, "/mnt/");
+        }
+        
+        if (media_start) {
+            // Find the USB label part
+            char* path_after_media = strchr(media_start + 1, '/');
+            if (path_after_media) {
+                path_after_media++; // Skip the slash
+                
+                // For /run/media/user/LABEL pattern, skip the username
+                if (strstr(media_start, "/run/media/")) {
+                    char* next_slash = strchr(path_after_media, '/');
+                    if (next_slash) {
+                        path_after_media = next_slash + 1;
+                    }
+                }
+                
+                // Extract just the USB label (up to next slash or end)
+                char* label_end = strchr(path_after_media, '/');
+                if (label_end) {
+                    size_t label_len = label_end - path_after_media;
+                    if (label_len > 11) label_len = 11; // Max 11 chars for display
+                    strncpy(result, path_after_media, label_len);
+                    result[label_len] = '\0';
+                } else {
+                    // USB label is the last part
+                    strncpy(result, path_after_media, result_size - 1);
+                    result[result_size - 1] = '\0';
+                }
+                return;
+            }
+        }
+    }
+    
+    // Home directory shortening
+    if (home_dir && strncmp(dir_path, home_dir, strlen(home_dir)) == 0) {
+        if (dir_path[strlen(home_dir)] == '/' || dir_path[strlen(home_dir)] == '\0') {
+            // Replace home directory with ~
+            char temp[512];
+            snprintf(temp, sizeof(temp), "~%s", dir_path + strlen(home_dir));
+            
+            // If result is too long, truncate intelligently
+            if (strlen(temp) > 11) {
+                // Show ~/...end_part
+                char* last_part = strrchr(temp, '/');
+                if (last_part && strlen(last_part) < 8) {
+                    snprintf(result, result_size, "~...%s", last_part);
+                } else {
+                    strncpy(result, temp, 11);
+                    result[11] = '\0';
+                }
+            } else {
+                strncpy(result, temp, result_size - 1);
+                result[result_size - 1] = '\0';
+            }
+            return;
+        }
+    }
+    
+    // Current working directory
+    if (strcmp(dir_path, ".") == 0 || strcmp(dir_path, PADS_DIR) == 0) {
+        strncpy(result, "pads", result_size - 1);
+        result[result_size - 1] = '\0';
+        return;
+    }
+    
+    // System/other paths - smart truncation with ellipsis
+    if (strlen(dir_path) > 11) {
+        // Try to show the most meaningful part
+        char* last_part = strrchr(dir_path, '/');
+        if (last_part && strlen(last_part) < 9) {
+            // Show .../last_part
+            snprintf(result, result_size, "...%s", last_part);
+        } else {
+            // Show first part with ellipsis
+            strncpy(result, dir_path, 8);
+            strncpy(result + 8, "...", result_size - 8 - 1);
+            result[result_size - 1] = '\0';
+        }
+    } else {
+        // Short enough, use as-is
+        strncpy(result, dir_path, result_size - 1);
+        result[result_size - 1] = '\0';
+    }
+}
+
 void print_usage(const char* program_name) {
     printf("OTP Cipher - One Time Pad Implementation %s\n", get_version());
     printf("%s\n", get_build_info());