diff --git a/components/tasks/task-card.tsx b/components/tasks/task-card.tsx
index 469785c..87d18fb 100644
--- a/components/tasks/task-card.tsx
+++ b/components/tasks/task-card.tsx
@@ -23,6 +23,7 @@ import {
   Circle
 } from 'lucide-react';
 import { cn } from '@/lib/utils';
+import { TaskEditDialog } from './task-edit-dialog';
 
 interface TaskCardProps {
   task: Task;
@@ -45,6 +46,7 @@ const statusColors = {
 
 export function TaskCard({ task, storyId }: TaskCardProps) {
   const [isExpanded, setIsExpanded] = useState(false);
+  const [isEditDialogOpen, setIsEditDialogOpen] = useState(false);
   const changeStatus = useChangeTaskStatus();
   const updateTask = useUpdateTask();
   const deleteTask = useDeleteTask();
@@ -144,7 +146,7 @@ export function TaskCard({ task, storyId }: TaskCardProps) {
                 </Button>
               </DropdownMenuTrigger>
               <DropdownMenuContent align="end">
-                <DropdownMenuItem onClick={() => {/* TODO: Open edit dialog */}}>
+                <DropdownMenuItem onClick={() => setIsEditDialogOpen(true)}>
                   <Pencil className="w-4 h-4 mr-2" />
                   Edit
                 </DropdownMenuItem>
@@ -160,6 +162,13 @@ export function TaskCard({ task, storyId }: TaskCardProps) {
           </div>
         </div>
       </CardHeader>
+
+      {/* Edit Dialog */}
+      <TaskEditDialog
+        task={task}
+        open={isEditDialogOpen}
+        onOpenChange={setIsEditDialogOpen}
+      />
     </Card>
   );
 }
diff --git a/components/tasks/task-edit-dialog.tsx b/components/tasks/task-edit-dialog.tsx
new file mode 100644
index 0000000..26c6b06
--- /dev/null
+++ b/components/tasks/task-edit-dialog.tsx
@@ -0,0 +1,273 @@
+'use client';
+
+import { useState, useEffect } from 'react';
+import { useForm } from 'react-hook-form';
+import { zodResolver } from '@hookform/resolvers/zod';
+import * as z from 'zod';
+import { Task, UpdateTaskDto, WorkItemPriority } from '@/types/project';
+import { useUpdateTask } from '@/lib/hooks/use-tasks';
+import {
+  Dialog,
+  DialogContent,
+  DialogHeader,
+  DialogTitle,
+  DialogFooter,
+} from '@/components/ui/dialog';
+import {
+  Form,
+  FormControl,
+  FormField,
+  FormItem,
+  FormLabel,
+  FormMessage,
+  FormDescription,
+} from '@/components/ui/form';
+import { Input } from '@/components/ui/input';
+import { Textarea } from '@/components/ui/textarea';
+import {
+  Select,
+  SelectContent,
+  SelectItem,
+  SelectTrigger,
+  SelectValue,
+} from '@/components/ui/select';
+import { Button } from '@/components/ui/button';
+import { Loader2 } from 'lucide-react';
+
+interface TaskEditDialogProps {
+  task: Task;
+  open: boolean;
+  onOpenChange: (open: boolean) => void;
+}
+
+const taskSchema = z.object({
+  title: z.string().min(1, 'Title is required').max(200, 'Title must be less than 200 characters'),
+  description: z.string().max(2000, 'Description must be less than 2000 characters').optional(),
+  priority: z.enum(['Low', 'Medium', 'High', 'Critical']),
+  estimatedHours: z
+    .number()
+    .min(0, 'Estimated hours must be positive')
+    .max(1000, 'Estimated hours must be less than 1000')
+    .optional()
+    .or(z.literal('')),
+  actualHours: z
+    .number()
+    .min(0, 'Actual hours must be positive')
+    .max(1000, 'Actual hours must be less than 1000')
+    .optional()
+    .or(z.literal('')),
+});
+
+type TaskFormValues = z.infer<typeof taskSchema>;
+
+export function TaskEditDialog({ task, open, onOpenChange }: TaskEditDialogProps) {
+  const updateTask = useUpdateTask();
+  const [isSubmitting, setIsSubmitting] = useState(false);
+
+  const form = useForm<TaskFormValues>({
+    resolver: zodResolver(taskSchema),
+    defaultValues: {
+      title: task.title,
+      description: task.description || '',
+      priority: task.priority,
+      estimatedHours: task.estimatedHours || ('' as any),
+      actualHours: task.actualHours || ('' as any),
+    },
+  });
+
+  // Reset form when task changes
+  useEffect(() => {
+    form.reset({
+      title: task.title,
+      description: task.description || '',
+      priority: task.priority,
+      estimatedHours: task.estimatedHours || ('' as any),
+      actualHours: task.actualHours || ('' as any),
+    });
+  }, [task, form]);
+
+  async function onSubmit(data: TaskFormValues) {
+    setIsSubmitting(true);
+    try {
+      const updateData: UpdateTaskDto = {
+        title: data.title,
+        description: data.description || undefined,
+        priority: data.priority,
+        estimatedHours: typeof data.estimatedHours === 'number' ? data.estimatedHours : undefined,
+        actualHours: typeof data.actualHours === 'number' ? data.actualHours : undefined,
+      };
+
+      await updateTask.mutateAsync({
+        id: task.id,
+        data: updateData,
+      });
+
+      onOpenChange(false);
+      form.reset();
+    } catch (error) {
+      // Error handling is done in the mutation hook
+    } finally {
+      setIsSubmitting(false);
+    }
+  }
+
+  return (
+    <Dialog open={open} onOpenChange={onOpenChange}>
+      <DialogContent className="sm:max-w-[600px]">
+        <DialogHeader>
+          <DialogTitle>Edit Task</DialogTitle>
+        </DialogHeader>
+
+        <Form {...form}>
+          <form onSubmit={form.handleSubmit(onSubmit)} className="space-y-4">
+            {/* Title */}
+            <FormField
+              control={form.control}
+              name="title"
+              render={({ field }) => (
+                <FormItem>
+                  <FormLabel>Title</FormLabel>
+                  <FormControl>
+                    <Input
+                      placeholder="Enter task title..."
+                      {...field}
+                      disabled={isSubmitting}
+                    />
+                  </FormControl>
+                  <FormMessage />
+                </FormItem>
+              )}
+            />
+
+            {/* Description */}
+            <FormField
+              control={form.control}
+              name="description"
+              render={({ field }) => (
+                <FormItem>
+                  <FormLabel>Description</FormLabel>
+                  <FormControl>
+                    <Textarea
+                      placeholder="Enter task description..."
+                      rows={4}
+                      {...field}
+                      disabled={isSubmitting}
+                    />
+                  </FormControl>
+                  <FormDescription>
+                    Provide additional details about this task
+                  </FormDescription>
+                  <FormMessage />
+                </FormItem>
+              )}
+            />
+
+            {/* Priority and Estimated Hours */}
+            <div className="grid grid-cols-2 gap-4">
+              <FormField
+                control={form.control}
+                name="priority"
+                render={({ field }) => (
+                  <FormItem>
+                    <FormLabel>Priority</FormLabel>
+                    <Select
+                      onValueChange={field.onChange}
+                      value={field.value}
+                      disabled={isSubmitting}
+                    >
+                      <FormControl>
+                        <SelectTrigger>
+                          <SelectValue placeholder="Select priority" />
+                        </SelectTrigger>
+                      </FormControl>
+                      <SelectContent>
+                        <SelectItem value="Low">Low</SelectItem>
+                        <SelectItem value="Medium">Medium</SelectItem>
+                        <SelectItem value="High">High</SelectItem>
+                        <SelectItem value="Critical">Critical</SelectItem>
+                      </SelectContent>
+                    </Select>
+                    <FormMessage />
+                  </FormItem>
+                )}
+              />
+
+              <FormField
+                control={form.control}
+                name="estimatedHours"
+                render={({ field }) => (
+                  <FormItem>
+                    <FormLabel>Estimated Hours</FormLabel>
+                    <FormControl>
+                      <Input
+                        type="number"
+                        placeholder="e.g., 8"
+                        min="0"
+                        max="1000"
+                        step="0.5"
+                        {...field}
+                        onChange={(e) => {
+                          const value = e.target.value;
+                          field.onChange(value === '' ? '' : parseFloat(value));
+                        }}
+                        value={field.value === undefined ? '' : field.value}
+                        disabled={isSubmitting}
+                      />
+                    </FormControl>
+                    <FormMessage />
+                  </FormItem>
+                )}
+              />
+            </div>
+
+            {/* Actual Hours */}
+            <FormField
+              control={form.control}
+              name="actualHours"
+              render={({ field }) => (
+                <FormItem>
+                  <FormLabel>Actual Hours</FormLabel>
+                  <FormControl>
+                    <Input
+                      type="number"
+                      placeholder="e.g., 6"
+                      min="0"
+                      max="1000"
+                      step="0.5"
+                      {...field}
+                      onChange={(e) => {
+                        const value = e.target.value;
+                        field.onChange(value === '' ? '' : parseFloat(value));
+                      }}
+                      value={field.value === undefined ? '' : field.value}
+                      disabled={isSubmitting}
+                    />
+                  </FormControl>
+                  <FormDescription>
+                    Time spent on this task so far
+                  </FormDescription>
+                  <FormMessage />
+                </FormItem>
+              )}
+            />
+
+            <DialogFooter>
+              <Button
+                type="button"
+                variant="outline"
+                onClick={() => onOpenChange(false)}
+                disabled={isSubmitting}
+              >
+                Cancel
+              </Button>
+              <Button type="submit" disabled={isSubmitting}>
+                {isSubmitting && <Loader2 className="mr-2 h-4 w-4 animate-spin" />}
+                Save Changes
+              </Button>
+            </DialogFooter>
+          </form>
+        </Form>
+      </DialogContent>
+    </Dialog>
+  );
+}