diff --git a/client/src/api.js b/client/src/api.js
index 11cb9db70..1d374309f 100644
--- a/client/src/api.js
+++ b/client/src/api.js
@@ -7,6 +7,7 @@ export const api = {
     const params = new URLSearchParams()
     if (filters.warehouse && filters.warehouse !== 'all') params.append('warehouse', filters.warehouse)
     if (filters.category && filters.category !== 'all') params.append('category', filters.category)
+    if (filters.stock_status && filters.stock_status !== 'all') params.append('stock_status', filters.stock_status)
 
     const response = await axios.get(`${API_BASE_URL}/inventory?${params.toString()}`)
     return response.data
diff --git a/client/src/locales/en.js b/client/src/locales/en.js
index 03a58fe6e..346590003 100644
--- a/client/src/locales/en.js
+++ b/client/src/locales/en.js
@@ -80,6 +80,9 @@ export default {
     skus: 'SKUs',
     searchPlaceholder: 'Search by item name...',
     clearSearch: 'Clear search',
+    stockStatusFilter: 'Stock Status',
+    stockStatusAll: 'All',
+    stockStatusOutOfStock: 'Out of Stock',
     totalItems: 'Total Items',
     totalValue: 'Total Value',
     lowStockItems: 'Low Stock Items',
diff --git a/client/src/locales/ja.js b/client/src/locales/ja.js
index db33223ac..e24c0b0a1 100644
--- a/client/src/locales/ja.js
+++ b/client/src/locales/ja.js
@@ -80,6 +80,9 @@ export default {
     skus: 'SKU',
     searchPlaceholder: '品目名で検索...',
     clearSearch: '検索をクリア',
+    stockStatusFilter: '在庫状況',
+    stockStatusAll: 'すべて',
+    stockStatusOutOfStock: '在庫切れ',
     totalItems: '総品目数',
     totalValue: '総価値',
     lowStockItems: '在庫僅少品目',
diff --git a/client/src/views/Inventory.vue b/client/src/views/Inventory.vue
index 4819326eb..0a70e14f2 100644
--- a/client/src/views/Inventory.vue
+++ b/client/src/views/Inventory.vue
@@ -32,6 +32,17 @@
               </svg>
             </button>
           </div>
+          <div class="stock-status-filter">
+            <label for="stock-status-select" class="visually-hidden">{{ t('inventory.stockStatusFilter') }}</label>
+            <select
+              id="stock-status-select"
+              v-model="stockStatusFilter"
+              class="stock-status-select"
+            >
+              <option value="all">{{ t('inventory.stockStatusAll') }}</option>
+              <option value="out_of_stock">{{ t('inventory.stockStatusOutOfStock') }}</option>
+            </select>
+          </div>
         </div>
         <div class="table-container">
           <table>
@@ -106,6 +117,10 @@ export default {
     const error = ref(null)
     const items = ref([])
     const searchQuery = ref('')
+    // Local filter for stock status - scoped to this component only.
+    // The global useFilters `selectedStatus` is for Order Status; inventory
+    // intentionally does not use it (see comment below in loadInventory).
+    const stockStatusFilter = ref('all')
 
     // Modal state
     const showItemModal = ref(false)
@@ -156,7 +171,8 @@ export default {
         // Inventory doesn't support month/status filters, only warehouse and category
         items.value = await api.getInventory({
           warehouse: filters.warehouse,
-          category: filters.category
+          category: filters.category,
+          stock_status: stockStatusFilter.value
         })
       } catch (err) {
         error.value = 'Failed to load inventory: ' + err.message
@@ -166,7 +182,7 @@ export default {
     }
 
     // Watch for filter changes and reload data
-    watch([selectedLocation, selectedCategory], () => {
+    watch([selectedLocation, selectedCategory, stockStatusFilter], () => {
       loadInventory()
     })
 
@@ -209,6 +225,7 @@ export default {
       error,
       items,
       searchQuery,
+      stockStatusFilter,
       filteredItems,
       getStockStatus,
       getStockStatusClass,
@@ -317,6 +334,41 @@ export default {
   height: 18px;
 }
 
+.visually-hidden {
+  position: absolute;
+  width: 1px;
+  height: 1px;
+  padding: 0;
+  margin: -1px;
+  overflow: hidden;
+  clip: rect(0, 0, 0, 0);
+  white-space: nowrap;
+  border: 0;
+}
+
+.stock-status-filter {
+  display: flex;
+  align-items: center;
+}
+
+.stock-status-select {
+  padding: 0.5rem 0.75rem;
+  border: 1px solid #cbd5e1;
+  border-radius: 8px;
+  font-size: 0.875rem;
+  color: #0f172a;
+  background: #f8fafc;
+  transition: all 0.2s;
+  cursor: pointer;
+}
+
+.stock-status-select:focus {
+  outline: none;
+  border-color: #3b82f6;
+  background: white;
+  box-shadow: 0 0 0 3px rgba(59, 130, 246, 0.1);
+}
+
 .loading,
 .error {
   padding: 2rem;
diff --git a/server/data/inventory.json b/server/data/inventory.json
index 486fda819..9deeda74f 100644
--- a/server/data/inventory.json
+++ b/server/data/inventory.json
@@ -113,7 +113,7 @@
     "name": "Standard Servo Motor",
     "category": "Actuators",
     "warehouse": "Tokyo",
-    "quantity_on_hand": 28,
+    "quantity_on_hand": 0,
     "reorder_point": 30,
     "unit_cost": 725.0,
     "location": "Warehouse C-03",
diff --git a/server/main.py b/server/main.py
index a0c2d8c5a..efad7d80a 100644
--- a/server/main.py
+++ b/server/main.py
@@ -46,6 +46,16 @@ def apply_filters(items: list, warehouse: Optional[str] = None, category: Option
 
     return filtered
 
+def filter_by_stock_status(items: list, stock_status: Optional[str] = None) -> list:
+    """Filter inventory items by stock status derived from quantity_on_hand"""
+    if not stock_status or stock_status == 'all':
+        return items
+
+    if stock_status == 'out_of_stock':
+        return [item for item in items if item.get('quantity_on_hand', 0) == 0]
+
+    return items
+
 # CORS middleware
 app.add_middleware(
     CORSMiddleware,
@@ -128,10 +138,12 @@ def root():
 @app.get("/api/inventory", response_model=List[InventoryItem])
 def get_inventory(
     warehouse: Optional[str] = None,
-    category: Optional[str] = None
+    category: Optional[str] = None,
+    stock_status: Optional[str] = None
 ):
     """Get all inventory items with optional filtering"""
-    return apply_filters(inventory_items, warehouse, category)
+    filtered = apply_filters(inventory_items, warehouse, category)
+    return filter_by_stock_status(filtered, stock_status)
 
 @app.get("/api/inventory/{item_id}", response_model=InventoryItem)
 def get_inventory_item(item_id: str):