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diff --git a/examples/generate_library_demo_gif.py b/examples/generate_library_demo_gif.py
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+#!/usr/bin/env python3
+"""
+Generate demo GIF showing the complete library ↔ reading workflow.
+
+This script creates an animated GIF demonstrating:
+1. Library view with multiple books
+2. Selecting a book by tapping
+3. Reading the book (showing 5 pages)
+4. Closing the book (back to library)
+5. Reopening the same book
+6. Auto-resuming at the saved position
+
+Usage:
+    python generate_library_demo_gif.py path/to/library/directory output.gif
+"""
+
+import sys
+import os
+from pathlib import Path
+from PIL import Image, ImageDraw, ImageFont
+
+# Add parent directory to path
+sys.path.insert(0, str(Path(__file__).parent.parent))
+
+from dreader.library import LibraryManager
+from dreader.application import EbookReader
+from dreader.gesture import TouchEvent, GestureType
+
+
+def add_annotation(image: Image.Image, text: str, position: str = "top") -> Image.Image:
+    """
+    Add annotation text to an image.
+
+    Args:
+        image: PIL Image to annotate
+        text: Annotation text
+        position: "top" or "bottom"
+
+    Returns:
+        New image with annotation
+    """
+    # Create a copy
+    img = image.copy()
+    draw = ImageDraw.Draw(img)
+
+    # Try to use a nice font, fall back to default
+    try:
+        font = ImageFont.truetype("/usr/share/fonts/truetype/dejavu/DejaVuSans-Bold.ttf", 24)
+    except:
+        font = ImageFont.load_default()
+
+    # Get text size
+    bbox = draw.textbbox((0, 0), text, font=font)
+    text_width = bbox[2] - bbox[0]
+    text_height = bbox[3] - bbox[1]
+
+    # Calculate position
+    x = (img.width - text_width) // 2
+    if position == "top":
+        y = 20
+    else:
+        y = img.height - text_height - 20
+
+    # Draw background rectangle
+    padding = 10
+    draw.rectangle(
+        [x - padding, y - padding, x + text_width + padding, y + text_height + padding],
+        fill=(0, 0, 0, 200)
+    )
+
+    # Draw text
+    draw.text((x, y), text, fill=(255, 255, 255), font=font)
+
+    return img
+
+
+def add_tap_indicator(image: Image.Image, x: int, y: int, label: str = "TAP") -> Image.Image:
+    """
+    Add a visual tap indicator at coordinates.
+
+    Args:
+        image: PIL Image
+        x, y: Tap coordinates
+        label: Label text
+
+    Returns:
+        New image with tap indicator
+    """
+    img = image.copy()
+    draw = ImageDraw.Draw(img)
+
+    # Draw circle at tap location
+    radius = 30
+    draw.ellipse(
+        [x - radius, y - radius, x + radius, y + radius],
+        outline=(255, 0, 0),
+        width=4
+    )
+
+    # Draw crosshair
+    cross_size = 10
+    draw.line([x - cross_size, y, x + cross_size, y], fill=(255, 0, 0), width=3)
+    draw.line([x, y - cross_size, x, y + cross_size], fill=(255, 0, 0), width=3)
+
+    # Draw label
+    try:
+        font = ImageFont.truetype("/usr/share/fonts/truetype/dejavu/DejaVuSans-Bold.ttf", 18)
+    except:
+        font = ImageFont.load_default()
+
+    bbox = draw.textbbox((0, 0), label, font=font)
+    text_width = bbox[2] - bbox[0]
+    text_height = bbox[3] - bbox[1]
+
+    # Position label above tap
+    label_x = x - text_width // 2
+    label_y = y - radius - text_height - 10
+
+    # Background for label
+    padding = 5
+    draw.rectangle(
+        [label_x - padding, label_y - padding,
+         label_x + text_width + padding, label_y + text_height + padding],
+        fill=(255, 0, 0)
+    )
+    draw.text((label_x, label_y), label, fill=(255, 255, 255), font=font)
+
+    return img
+
+
+def generate_library_demo_gif(library_path: str, output_path: str):
+    """
+    Generate the demo GIF.
+
+    Args:
+        library_path: Path to directory containing EPUB files
+        output_path: Output GIF file path
+    """
+    frames = []
+    frame_durations = []  # Duration for each frame in milliseconds
+
+    print("Generating library demo GIF...")
+    print("=" * 70)
+
+    # ===================================================================
+    # FRAME 1: Library view
+    # ===================================================================
+    print("\n1. Rendering library view...")
+    library = LibraryManager(
+        library_path=library_path,
+        page_size=(800, 1200)
+    )
+
+    books = library.scan_library()
+    print(f"   Found {len(books)} books")
+
+    if len(books) == 0:
+        print("Error: No books found in library")
+        sys.exit(1)
+
+    library_image = library.render_library()
+    annotated = add_annotation(library_image, "📚 My Library - Select a book", "top")
+    frames.append(annotated)
+    frame_durations.append(2000)  # Hold for 2 seconds
+
+    # ===================================================================
+    # FRAME 2: Show tap on first book
+    # ===================================================================
+    print("2. Showing book selection...")
+    tap_x, tap_y = 400, 150  # Approximate position of first book
+    tap_frame = add_tap_indicator(library_image, tap_x, tap_y, "SELECT BOOK")
+    annotated = add_annotation(tap_frame, "📚 Tap to open book", "top")
+    frames.append(annotated)
+    frame_durations.append(1500)
+
+    # Get the selected book
+    selected_book = library.handle_library_tap(tap_x, tap_y)
+    if not selected_book:
+        selected_book = books[0]['path']
+
+    print(f"   Selected: {selected_book}")
+
+    # ===================================================================
+    # FRAME 3-7: Reading pages
+    # ===================================================================
+    print("3. Opening book and reading pages...")
+    reader = EbookReader(
+        page_size=(800, 1200),
+        margin=40,
+        background_color=(255, 255, 255)
+    )
+
+    reader.load_epub(selected_book)
+    book_info = reader.get_book_info()
+    print(f"   Title: {book_info['title']}")
+
+    # First page
+    page = reader.get_current_page()
+    annotated = add_annotation(page, f"📖 {book_info['title']} - Page 1", "top")
+    frames.append(annotated)
+    frame_durations.append(1500)
+
+    # Turn 4 more pages (total 5 pages)
+    for i in range(2, 6):
+        print(f"   Reading page {i}...")
+        reader.next_page()
+        page = reader.get_current_page()
+        annotated = add_annotation(page, f"📖 Reading - Page {i}", "top")
+        frames.append(annotated)
+        frame_durations.append(1000)  # Faster page turns
+
+    # ===================================================================
+    # FRAME 8: Show settings overlay with "Back to Library"
+    # ===================================================================
+    print("4. Opening settings overlay...")
+    settings_overlay = reader.open_settings_overlay()
+    if settings_overlay:
+        annotated = add_annotation(settings_overlay, "⚙️ Settings - Tap 'Back to Library'", "top")
+        # Show where to tap (estimated position of back button)
+        tap_frame = add_tap_indicator(annotated, 400, 950, "BACK")
+        frames.append(tap_frame)
+        frame_durations.append(2000)
+
+    # ===================================================================
+    # FRAME 9: Save position and return to library
+    # ===================================================================
+    print("5. Saving position and returning to library...")
+    # Save current position for resume
+    reader.save_position("__auto_resume__")
+    pos_info = reader.get_position_info()
+    saved_progress = pos_info['progress'] * 100
+    print(f"   Saved at {saved_progress:.1f}% progress")
+
+    # Close reader
+    reader.close()
+
+    # Re-render library
+    library_image = library.render_library()
+    annotated = add_annotation(library_image, "📚 Back to Library (position saved)", "top")
+    frames.append(annotated)
+    frame_durations.append(2000)
+
+    # ===================================================================
+    # FRAME 10: Tap same book again
+    # ===================================================================
+    print("6. Re-selecting same book...")
+    tap_frame = add_tap_indicator(library_image, tap_x, tap_y, "REOPEN")
+    annotated = add_annotation(tap_frame, "📚 Tap to reopen book", "top")
+    frames.append(annotated)
+    frame_durations.append(1500)
+
+    # ===================================================================
+    # FRAME 11: Reopen book and auto-resume
+    # ===================================================================
+    print("7. Reopening book with auto-resume...")
+    reader2 = EbookReader(
+        page_size=(800, 1200),
+        margin=40,
+        background_color=(255, 255, 255)
+    )
+
+    reader2.load_epub(selected_book)
+
+    # Load saved position
+    resumed_page = reader2.load_position("__auto_resume__")
+    if resumed_page:
+        pos_info = reader2.get_position_info()
+        progress = pos_info['progress'] * 100
+        print(f"   ✓ Resumed at {progress:.1f}% progress")
+
+        annotated = add_annotation(resumed_page, f"✅ Auto-resumed at {progress:.1f}%", "top")
+        frames.append(annotated)
+        frame_durations.append(3000)  # Hold final frame longer
+
+    reader2.close()
+
+    # ===================================================================
+    # Save GIF
+    # ===================================================================
+    print("\n8. Saving GIF...")
+    print(f"   Total frames: {len(frames)}")
+    print(f"   Output: {output_path}")
+
+    # Save as GIF with variable durations
+    frames[0].save(
+        output_path,
+        save_all=True,
+        append_images=frames[1:],
+        duration=frame_durations,
+        loop=0,  # Loop forever
+        optimize=False  # Keep quality
+    )
+
+    print(f"\n✓ Demo GIF created: {output_path}")
+    print(f"  Size: {os.path.getsize(output_path) / 1024 / 1024:.1f} MB")
+
+    # Cleanup
+    library.cleanup()
+
+    print("\n" + "=" * 70)
+    print("Demo complete!")
+    print("\nThe GIF demonstrates:")
+    print("  1. Library view with book selection")
+    print("  2. Opening a book and reading 5 pages")
+    print("  3. Settings overlay with 'Back to Library' button")
+    print("  4. Returning to library (with position saved)")
+    print("  5. Reopening the same book")
+    print("  6. Auto-resuming at saved position")
+
+
+def main():
+    """Main entry point."""
+    if len(sys.argv) < 2:
+        print("Usage: python generate_library_demo_gif.py path/to/library [output.gif]")
+        print("\nExample:")
+        print("  python generate_library_demo_gif.py tests/data/library-epub/")
+        print("  python generate_library_demo_gif.py tests/data/library-epub/ doc/images/custom_demo.gif")
+        sys.exit(1)
+
+    library_path = sys.argv[1]
+    output_path = sys.argv[2] if len(sys.argv) > 2 else "doc/images/library_reading_demo.gif"
+
+    if not os.path.exists(library_path):
+        print(f"Error: Directory not found: {library_path}")
+        sys.exit(1)
+
+    if not os.path.isdir(library_path):
+        print(f"Error: Not a directory: {library_path}")
+        sys.exit(1)
+
+    try:
+        generate_library_demo_gif(library_path, output_path)
+    except Exception as e:
+        print(f"\nError generating demo: {e}")
+        import traceback
+        traceback.print_exc()
+        sys.exit(1)
+
+
+if __name__ == "__main__":
+    main()