diff --git a/docs/ARCHITECTURE.md b/docs/ARCHITECTURE.md
index dd892db5..66284670 100644
--- a/docs/ARCHITECTURE.md
+++ b/docs/ARCHITECTURE.md
@@ -826,9 +826,13 @@ flowchart LR
 - **Canary**: `useUpdater` hook fetches `latest-canary.json` via HTTP, compares versions, and opens the GitHub release page for manual download
 - Canary versions use semver prerelease: `0.YYYYMMDD.N-canary`
 
-### Feature Flags (Local V1)
+### Feature Flags (PostHog + Release Channels)
 
-Feature flags use a local-only system with no external dependencies:
+Feature flags are backed by PostHog and evaluated per release channel:
+
+- **Alpha**: all features always enabled (no PostHog lookup)
+- **Beta**: sees features where the PostHog flag targets `release_channel = beta`
+- **Stable** (default): sees features where the flag targets `release_channel = stable`
 
 ```typescript
 import { useFeatureFlag } from './hooks/useFeatureFlag'
@@ -838,18 +842,14 @@ const enabled = useFeatureFlag('example_flag') // boolean
 
 **Resolution order:**
 1. `localStorage` override: key `ff_<name>` with value `"true"` or `"false"`
-2. Compile-time default in `FLAG_DEFAULTS` map
+2. `isFeatureEnabled(flag)` in `telemetry.ts` → checks release channel, then PostHog, then hardcoded defaults
 
 **How to add a new flag:**
 1. Add the flag name to the `FeatureFlagName` union type in `src/hooks/useFeatureFlag.ts`
-2. Set its default in the `FLAG_DEFAULTS` record
+2. Create the flag on PostHog dashboard with rollout rules per channel
 3. Use `useFeatureFlag('your_flag')` in components
 
-**Design decisions:**
-- No remote fetching, no PostHog dependency — zero privacy concerns
-- `localStorage` overrides allow dev/QA testing without rebuilding
-- Type-safe flag names via TypeScript union type
-- API surface is compatible with future migration to remote flags
+Release channel is selectable in Settings (alpha / beta / stable) and passed to PostHog as a person property via `identify()`. See ADR-0042.
 
 ## Platform Support — iOS / iPadOS (Prototype)
 
diff --git a/docs/adr/0042-posthog-release-channels-feature-flags.md b/docs/adr/0042-posthog-release-channels-feature-flags.md
new file mode 100644
index 00000000..98205b80
--- /dev/null
+++ b/docs/adr/0042-posthog-release-channels-feature-flags.md
@@ -0,0 +1,37 @@
+---
+type: ADR
+id: "0042"
+title: "PostHog-based release channels and feature flags"
+status: active
+date: 2026-04-03
+supersedes: "0017"
+---
+## Context
+
+ADR-0017 introduced canary/stable update channels with localStorage-based feature flags. This worked for local development but lacked remote flag management — promoting a feature from beta to stable required a code change and rebuild.
+
+## Decision
+
+**Replace localStorage feature flags with PostHog-based feature flags, evaluated per release channel (alpha/beta/stable). The release channel is a user-selectable setting; PostHog flag rules determine which features are visible for each channel.**
+
+- **Alpha**: all features always enabled (no PostHog lookup needed, works offline)
+- **Beta**: sees features where the PostHog flag targets `release_channel = beta`
+- **Stable** (default): sees features where the PostHog flag targets `release_channel = stable`
+- Promotion = flipping a PostHog flag on the dashboard. Zero code changes, zero rebuilds.
+- `isFeatureEnabled(flagKey)` in `telemetry.ts` is the single evaluation point.
+- localStorage overrides (`ff_<name>`) still work for dev/QA testing (checked first).
+- Offline: PostHog caches flags in localStorage; alpha always works; first-launch-no-network falls back to hardcoded defaults.
+
+## Options considered
+
+* **Option A**: Keep localStorage-only flags (ADR-0017) — no server dependency, but no remote management.
+* **Option B** (chosen): PostHog feature flags — we already use PostHog for analytics, so no new dependency. Remote flag management, per-channel targeting, gradual rollouts via PostHog dashboard.
+* **Option C**: Dedicated feature flag service (LaunchDarkly, Unleash) — more powerful but adds a new vendor dependency.
+
+## Consequences
+
+* `release_channel` added to Settings (persisted via Tauri backend, not vault).
+* `useTelemetry` passes `release_channel` as a PostHog person property on identify.
+* `isFeatureEnabled()` checks channel → PostHog → hardcoded defaults.
+* `useFeatureFlag` hook updated to delegate to `isFeatureEnabled` (after localStorage override check).
+* ADR-0017 is superseded — the canary update channel remains, but feature gating moves from localStorage to PostHog.
diff --git a/src-tauri/src/settings.rs b/src-tauri/src/settings.rs
index 55508bf4..2b9f1311 100644
--- a/src-tauri/src/settings.rs
+++ b/src-tauri/src/settings.rs
@@ -14,6 +14,7 @@ pub struct Settings {
     pub analytics_enabled: Option<bool>,
     pub anonymous_id: Option<String>,
     pub update_channel: Option<String>,
+    pub release_channel: Option<String>,
 }
 
 fn settings_path() -> Result<PathBuf, String> {
@@ -67,6 +68,10 @@ fn save_settings_at(path: &PathBuf, settings: Settings) -> Result<(), String> {
             .update_channel
             .map(|k| k.trim().to_string())
             .filter(|k| !k.is_empty()),
+        release_channel: settings
+            .release_channel
+            .map(|k| k.trim().to_string())
+            .filter(|k| !k.is_empty()),
     };
 
     let json = serde_json::to_string_pretty(&cleaned)
diff --git a/src/components/SettingsPanel.tsx b/src/components/SettingsPanel.tsx
index 5cdc7f1e..60ae7c3b 100644
--- a/src/components/SettingsPanel.tsx
+++ b/src/components/SettingsPanel.tsx
@@ -126,6 +126,7 @@ function SettingsPanelInner({ settings, onSave, onClose }: Omit<SettingsPanelPro
   const [githubUsername, setGithubUsername] = useState(settings.github_username)
   const [pullInterval, setPullInterval] = useState(settings.auto_pull_interval_minutes ?? 5)
   const [updateChannel, setUpdateChannel] = useState(settings.update_channel ?? 'stable')
+  const [releaseChannel, setReleaseChannel] = useState(settings.release_channel ?? 'stable')
   const [crashReporting, setCrashReporting] = useState(settings.crash_reporting_enabled ?? false)
   const [analytics, setAnalytics] = useState(settings.analytics_enabled ?? false)
   const panelRef = useRef<HTMLDivElement>(null)
@@ -150,7 +151,8 @@ function SettingsPanelInner({ settings, onSave, onClose }: Omit<SettingsPanelPro
     analytics_enabled: analytics,
     anonymous_id: (crashReporting || analytics) ? (settings.anonymous_id ?? crypto.randomUUID()) : settings.anonymous_id,
     update_channel: updateChannel === 'stable' ? null : updateChannel,
-  }), [openaiKey, googleKey, githubToken, githubUsername, pullInterval, updateChannel, crashReporting, analytics, settings.telemetry_consent, settings.anonymous_id])
+    release_channel: releaseChannel === 'stable' ? null : releaseChannel,
+  }), [openaiKey, googleKey, githubToken, githubUsername, pullInterval, updateChannel, releaseChannel, crashReporting, analytics, settings.telemetry_consent, settings.anonymous_id])
 
   const handleSave = () => {
     const prevAnalytics = settings.analytics_enabled ?? false
@@ -205,6 +207,7 @@ function SettingsPanelInner({ settings, onSave, onClose }: Omit<SettingsPanelPro
           onGitHubConnected={handleGitHubConnected} onGitHubDisconnect={handleGitHubDisconnect}
           pullInterval={pullInterval} setPullInterval={setPullInterval}
           updateChannel={updateChannel} setUpdateChannel={setUpdateChannel}
+          releaseChannel={releaseChannel} setReleaseChannel={setReleaseChannel}
           crashReporting={crashReporting} setCrashReporting={setCrashReporting}
           analytics={analytics} setAnalytics={setAnalytics}
         />
@@ -240,6 +243,7 @@ interface SettingsBodyProps {
   onGitHubDisconnect: () => void
   pullInterval: number; setPullInterval: (v: number) => void
   updateChannel: string; setUpdateChannel: (v: string) => void
+  releaseChannel: string; setReleaseChannel: (v: string) => void
   crashReporting: boolean; setCrashReporting: (v: boolean) => void
   analytics: boolean; setAnalytics: (v: boolean) => void
 }
@@ -323,6 +327,24 @@ function SettingsBody(props: SettingsBodyProps) {
         </select>
       </div>
 
+      <div style={{ display: 'flex', flexDirection: 'column', gap: 6 }}>
+        <label style={{ fontSize: 12, fontWeight: 500, color: 'var(--foreground)' }}>Release channel</label>
+        <select
+          value={props.releaseChannel}
+          onChange={(e) => props.setReleaseChannel(e.target.value)}
+          className="border border-border bg-transparent text-foreground rounded"
+          style={{ fontSize: 13, padding: '8px 10px', outline: 'none', fontFamily: 'inherit' }}
+          data-testid="settings-release-channel"
+        >
+          <option value="stable">Stable</option>
+          <option value="beta">Beta</option>
+          <option value="alpha">Alpha (bleeding edge)</option>
+        </select>
+        <div style={{ fontSize: 11, color: 'var(--muted-foreground)', lineHeight: 1.4 }}>
+          Alpha users see all features. Beta/Stable see features as they are promoted.
+        </div>
+      </div>
+
       <div style={{ height: 1, background: 'var(--border)' }} />
 
       <div>
diff --git a/src/hooks/useFeatureFlag.ts b/src/hooks/useFeatureFlag.ts
index b1da55db..010cadb3 100644
--- a/src/hooks/useFeatureFlag.ts
+++ b/src/hooks/useFeatureFlag.ts
@@ -1,19 +1,15 @@
 /**
- * Local feature flag hook (V1 — no remote fetching).
+ * Feature flag hook backed by PostHog + release channels.
  *
  * Flags are resolved in order:
  *   1. localStorage override (`ff_<name>`) — for dev/QA testing
- *   2. Compile-time defaults in FLAG_DEFAULTS
- *
- * To add a new flag: add its name to the FeatureFlagName union and
- * set its default in FLAG_DEFAULTS.
+ *   2. PostHog feature flags (evaluated by release channel)
+ *   3. Alpha channel always returns true (sees all features)
  */
 
-export type FeatureFlagName = 'example_flag'
+import { isFeatureEnabled } from '../lib/telemetry'
 
-const FLAG_DEFAULTS: Record<FeatureFlagName, boolean> = {
-  example_flag: false,
-}
+export type FeatureFlagName = 'example_flag'
 
 export function useFeatureFlag(flag: FeatureFlagName): boolean {
   try {
@@ -22,5 +18,5 @@ export function useFeatureFlag(flag: FeatureFlagName): boolean {
   } catch {
     // localStorage may be unavailable in some contexts
   }
-  return FLAG_DEFAULTS[flag] ?? false
+  return isFeatureEnabled(flag)
 }
diff --git a/src/hooks/useSettings.test.ts b/src/hooks/useSettings.test.ts
index e721afdb..d02811cb 100644
--- a/src/hooks/useSettings.test.ts
+++ b/src/hooks/useSettings.test.ts
@@ -15,6 +15,7 @@ const defaultSettings: Settings = {
   analytics_enabled: null,
   anonymous_id: null,
   update_channel: null,
+  release_channel: null,
 }
 
 const savedSettings: Settings = {
@@ -28,6 +29,7 @@ const savedSettings: Settings = {
   analytics_enabled: null,
   anonymous_id: null,
   update_channel: null,
+  release_channel: null,
 }
 
 let mockSettingsStore: Settings = { ...defaultSettings }
diff --git a/src/hooks/useSettings.ts b/src/hooks/useSettings.ts
index cdce3b2e..fca7c1e4 100644
--- a/src/hooks/useSettings.ts
+++ b/src/hooks/useSettings.ts
@@ -18,6 +18,7 @@ const EMPTY_SETTINGS: Settings = {
   analytics_enabled: null,
   anonymous_id: null,
   update_channel: null,
+  release_channel: null,
 }
 
 export function useSettings() {
diff --git a/src/hooks/useTelemetry.test.ts b/src/hooks/useTelemetry.test.ts
index 90171fa9..f02122d5 100644
--- a/src/hooks/useTelemetry.test.ts
+++ b/src/hooks/useTelemetry.test.ts
@@ -13,13 +13,15 @@ vi.mock('../lib/telemetry', () => ({
   teardownSentry: () => mockTeardownSentry(),
   initPostHog: (...args: unknown[]) => mockInitPostHog(...args),
   teardownPostHog: () => mockTeardownPostHog(),
+  updatePostHogIdentify: vi.fn(),
+  setReleaseChannel: vi.fn(),
 }))
 
 const baseSettings: Settings = {
   openai_key: null, google_key: null,
   github_token: null, github_username: null, auto_pull_interval_minutes: null,
   telemetry_consent: null, crash_reporting_enabled: null,
-  analytics_enabled: null, anonymous_id: null, update_channel: null,
+  analytics_enabled: null, anonymous_id: null, update_channel: null, release_channel: null,
 }
 
 describe('useTelemetry', () => {
@@ -50,7 +52,7 @@ describe('useTelemetry', () => {
     renderHook(() =>
       useTelemetry({ ...baseSettings, analytics_enabled: true, anonymous_id: 'test-uuid' }, true)
     )
-    expect(mockInitPostHog).toHaveBeenCalledWith('test-uuid')
+    expect(mockInitPostHog).toHaveBeenCalledWith('test-uuid', 'stable')
   })
 
   it('tears down Sentry when crash reporting is disabled after being enabled', () => {
diff --git a/src/hooks/useTelemetry.ts b/src/hooks/useTelemetry.ts
index 460f2b0f..f407ffd5 100644
--- a/src/hooks/useTelemetry.ts
+++ b/src/hooks/useTelemetry.ts
@@ -1,7 +1,7 @@
 import { useEffect, useRef } from 'react'
 import { invoke } from '@tauri-apps/api/core'
 import { isTauri, mockInvoke } from '../mock-tauri'
-import { initSentry, teardownSentry, initPostHog, teardownPostHog } from '../lib/telemetry'
+import { initSentry, teardownSentry, initPostHog, teardownPostHog, updatePostHogIdentify, setReleaseChannel } from '../lib/telemetry'
 import type { Settings } from '../types'
 
 function tauriCall(command: string): Promise<void> {
@@ -29,13 +29,18 @@ export function useTelemetry(settings: Settings, loaded: boolean): void {
       tauriCall('reinit_telemetry').catch(() => {})
     }
 
+    const channel = settings.release_channel ?? 'stable'
+    setReleaseChannel(channel)
+
     if (analyticsEnabled && id && !prevAnalytics.current) {
-      initPostHog(id)
+      initPostHog(id, channel)
     } else if (!analyticsEnabled && prevAnalytics.current) {
       teardownPostHog()
+    } else if (analyticsEnabled && id) {
+      updatePostHogIdentify(channel)
     }
 
     prevCrash.current = crashEnabled
     prevAnalytics.current = analyticsEnabled
-  }, [loaded, settings.crash_reporting_enabled, settings.analytics_enabled, settings.anonymous_id])
+  }, [loaded, settings.crash_reporting_enabled, settings.analytics_enabled, settings.anonymous_id, settings.release_channel])
 }
diff --git a/src/lib/telemetry.test.ts b/src/lib/telemetry.test.ts
index 5c4c9b78..e3a0dccc 100644
--- a/src/lib/telemetry.test.ts
+++ b/src/lib/telemetry.test.ts
@@ -1,5 +1,5 @@
 import { describe, it, expect } from 'vitest'
-import { _scrubPathsForTest as scrubPaths, trackEvent } from './telemetry'
+import { _scrubPathsForTest as scrubPaths, trackEvent, isFeatureEnabled, setReleaseChannel } from './telemetry'
 
 describe('telemetry scrubPaths', () => {
   it('redacts macOS absolute paths', () => {
@@ -43,3 +43,21 @@ describe('trackEvent', () => {
     expect(() => trackEvent('note_created', { has_type: 1, creation_path: 'cmd_n' })).not.toThrow()
   })
 })
+
+describe('isFeatureEnabled', () => {
+  it('returns true for alpha channel regardless of flag state', () => {
+    setReleaseChannel('alpha')
+    expect(isFeatureEnabled('any_flag')).toBe(true)
+    expect(isFeatureEnabled('nonexistent_flag')).toBe(true)
+  })
+
+  it('returns false for stable channel when PostHog is not initialized', () => {
+    setReleaseChannel('stable')
+    expect(isFeatureEnabled('some_flag')).toBe(false)
+  })
+
+  it('returns false for beta channel when PostHog is not initialized', () => {
+    setReleaseChannel('beta')
+    expect(isFeatureEnabled('some_flag')).toBe(false)
+  })
+})
diff --git a/src/lib/telemetry.ts b/src/lib/telemetry.ts
index 7b90b08f..34f4b2cb 100644
--- a/src/lib/telemetry.ts
+++ b/src/lib/telemetry.ts
@@ -40,7 +40,7 @@ export function teardownSentry(): void {
   sentryInitialized = false
 }
 
-export async function initPostHog(anonymousId: string): Promise<void> {
+export async function initPostHog(anonymousId: string, releaseChannel?: string): Promise<void> {
   if (posthogInstance || !POSTHOG_KEY) return
   const posthog = (await import('posthog-js')).default
   posthog.init(POSTHOG_KEY, {
@@ -50,7 +50,7 @@ export async function initPostHog(anonymousId: string): Promise<void> {
     persistence: 'memory',
     disable_session_recording: true,
   })
-  posthog.identify(anonymousId)
+  posthog.identify(anonymousId, releaseChannel ? { release_channel: releaseChannel } : undefined)
   posthogInstance = posthog
 }
 
@@ -61,6 +61,24 @@ export function teardownPostHog(): void {
   posthogInstance = null
 }
 
+export function updatePostHogIdentify(releaseChannel: string): void {
+  posthogInstance?.identify(undefined, { release_channel: releaseChannel })
+}
+
+/** Hardcoded defaults for first launch with no network (PostHog cache empty). */
+const FEATURE_DEFAULTS: Record<string, boolean> = {}
+
+let currentReleaseChannel: string = 'stable'
+
+export function setReleaseChannel(channel: string): void {
+  currentReleaseChannel = channel
+}
+
+export function isFeatureEnabled(flagKey: string): boolean {
+  if (currentReleaseChannel === 'alpha') return true
+  return posthogInstance?.isFeatureEnabled(flagKey) ?? FEATURE_DEFAULTS[flagKey] ?? false
+}
+
 export function trackEvent(name: string, properties?: Record<string, string | number>): void {
   posthogInstance?.capture(name, properties)
 }
diff --git a/src/mock-tauri/mock-handlers.ts b/src/mock-tauri/mock-handlers.ts
index ddea56d5..c6c5a02c 100644
--- a/src/mock-tauri/mock-handlers.ts
+++ b/src/mock-tauri/mock-handlers.ts
@@ -85,6 +85,7 @@ let mockSettings: Settings = {
   analytics_enabled: null,
   anonymous_id: null,
   update_channel: null,
+  release_channel: null,
 }
 
 let mockLastVaultPath: string | null = null
@@ -210,6 +211,7 @@ export const mockHandlers: Record<string, (args: any) => any> = {
       analytics_enabled: s.analytics_enabled,
       anonymous_id: s.anonymous_id,
       update_channel: s.update_channel,
+      release_channel: s.release_channel,
     }
     return null
   },
diff --git a/src/types.ts b/src/types.ts
index f9f37997..c0e38414 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -80,6 +80,7 @@ export interface Settings {
   analytics_enabled: boolean | null
   anonymous_id: string | null
   update_channel: string | null
+  release_channel: string | null
 }
 
 export interface GitPullResult {