diff --git a/IMPLEMENTATION_PLAN.md b/IMPLEMENTATION_PLAN.md
index 3ca7508..f969a7a 100644
--- a/IMPLEMENTATION_PLAN.md
+++ b/IMPLEMENTATION_PLAN.md
@@ -2,7 +2,7 @@
 
 ## 📊 Current Status
 
-**Progress**: Phases 1-10 Complete (83% of MVP features) ✅
+**Progress**: Phases 1-11 Complete (88% of MVP features) ✅
 
 ### ✅ Completed Features
 - **Core Foundation**: Next.js 16, React 19, TypeScript, Tailwind CSS 4
@@ -12,20 +12,21 @@
 - **Selection Tools**: Rectangle, Ellipse, Lasso, Magic Wand with full operations
 - **Transform Tools**: Move, Free Transform, Rotate, Scale, Skew
 - **Shape Tools**: Rectangle, Ellipse, Line, Arrow, Polygon, Star, Triangle
+- **Text Tool**: On-canvas editing, 16 fonts, Bold/Italic, Alignment, Line height, Letter spacing, Delete
 - **Color System**: HSV picker, swatches, history, color adjustments
 - **File Operations**: Open (drag/drop/paste), Export (PNG/JPG/WEBP), Project files
 - **Effects & Filters**: 15+ filters (Blur, Sharpen, Color adjustments, Artistic effects)
 - **UI/UX**: Professional layout, Theme toggle, State persistence, Custom scrollbars
 
 ### 🚧 In Progress / TODO
-- **Text Tool** (Phase 11)
-- **Advanced Brush Tools** (Clone Stamp, Healing Brush, Smudge)
+- **Advanced Brush Tools** (Clone Stamp, Healing Brush, Smudge, Dodge/Burn)
 - **Performance Optimizations** (Web Workers, Code splitting, Lazy loading)
 - **Accessibility** (ARIA labels, Screen reader support)
 - **Testing & Documentation** (Phase 12)
+- **Web Font Integration** (Google Fonts for text tool)
 
 ### 📅 Last Updated
-November 21, 2025 - Fixed fill tool undo/redo functionality
+November 21, 2025 - Completed Phase 11: Text Tool with comprehensive formatting controls
 
 ---
 
@@ -440,18 +441,22 @@ paint-ui/
 
 ---
 
-### Phase 8: Advanced Tools (Week 10-12) ✅ MOSTLY COMPLETE
+### Phase 8: Advanced Tools (Week 10-12) ✅ COMPLETE
 
 **Goals**: Implement advanced editing tools
 
 #### Tasks:
-1. **Text Tool**
-   - [ ] Text rendering on canvas - TODO: Phase 11
-   - [ ] Font family selection - TODO: Phase 11
-   - [ ] Font size/style/weight - TODO: Phase 11
-   - [ ] Text color - TODO: Phase 11
-   - [ ] Text alignment - TODO: Phase 11
-   - [ ] Web font loading - TODO: Phase 11
+1. **Text Tool** ✅ COMPLETE (Phase 11)
+   - [x] Text rendering on canvas (on-canvas editor with live preview)
+   - [x] Font family selection (16 system fonts)
+   - [x] Font size/style/weight (including Bold/Italic toggles)
+   - [x] Text color and opacity
+   - [x] Text alignment (Left/Center/Right buttons)
+   - [x] Line height control (slider 0.5-3.0)
+   - [x] Letter spacing control (slider -10px to 50px)
+   - [x] Text editing/repositioning (drag to move, click to re-edit)
+   - [x] Delete text functionality (Delete/Backspace on empty text)
+   - [ ] Web font loading (Google Fonts integration) - TODO: Enhancement
 
 2. **Shape Tools** ✅ COMPLETE (Phase 10)
    - [x] Rectangle (fill/stroke)
@@ -478,7 +483,7 @@ paint-ui/
    - [x] Move Tool
 
 **Deliverables**:
-- ⚠️ Text tool TODO (Phase 11)
+- ✅ Text tool fully functional with comprehensive formatting
 - ✅ Shape tools functional
 - ✅ Transform operations smooth
 
@@ -560,21 +565,24 @@ paint-ui/
 
 ---
 
-### Phase 11: Advanced Features (Week 14-16) ⚠️ TODO
+### Phase 11: Advanced Features (Week 14-16) ✅ TEXT TOOL COMPLETE
 
 **Goals**: Nice-to-have features
 
 #### Priority Tasks for Next Implementation:
-1. **Text Tool** ⭐ HIGH PRIORITY
-   - [ ] Text rendering on canvas
-   - [ ] Font family selection
-   - [ ] Font size/style/weight
-   - [ ] Text color and opacity
-   - [ ] Text alignment (left/center/right)
-   - [ ] Web font loading (Google Fonts integration)
-   - [ ] Text editing/repositioning
+1. **Text Tool** ✅ COMPLETE
+   - [x] Text rendering on canvas (Photoshop-style on-canvas editor)
+   - [x] Font family selection (16 system fonts)
+   - [x] Font size/style/weight (with Bold/Italic toggles)
+   - [x] Text color and opacity
+   - [x] Text alignment (Left/Center/Right buttons)
+   - [x] Line height control (0.5-3.0 range)
+   - [x] Letter spacing control (-10px to 50px)
+   - [x] Text editing/repositioning (click to edit, drag to move)
+   - [x] Delete functionality (Delete/Backspace on empty text)
+   - [ ] Web font loading (Google Fonts integration) - TODO: Enhancement
 
-2. **Advanced Brush Tools**
+2. **Advanced Brush Tools** ⚠️ TODO
    - [ ] Clone Stamp Tool
    - [ ] Healing Brush
    - [ ] Blur/Sharpen Tool (brush-based)
@@ -599,9 +607,9 @@ paint-ui/
    - [ ] Custom effect registration
 
 **Deliverables**:
-- ⚠️ Text tool (priority)
-- ⚠️ Advanced brush tools
-- ⏸️ Animation/batch/plugin features (nice-to-have)
+- ✅ Text tool complete with professional features
+- ⚠️ Advanced brush tools TODO
+- ⏸️ Animation/batch/plugin features (nice-to-have, future)
 
 ---