diff --git a/lib/services/gps_data_manager.dart b/lib/services/gps_data_manager.dart
index 7838d3b..3818187 100644
--- a/lib/services/gps_data_manager.dart
+++ b/lib/services/gps_data_manager.dart
@@ -1,31 +1,46 @@
 import 'dart:async';
-import 'package:flutter/foundation.dart';
+import 'package:flutter/widgets.dart';
 import 'package:geolocator/geolocator.dart';
+import 'package:wakelock_plus/wakelock_plus.dart';
 import '../gps_service.dart';
 import '../config/speed_unit.dart';
 import '../config/gps_constants.dart';
+import '../config/timing_constants.dart';
 import '../models/processed_gps_data.dart';
+import '../providers/overlay_provider.dart';
 import 'logger.dart';
 
-class GpsDataManager extends ChangeNotifier {
+class GpsDataManager extends ChangeNotifier with WidgetsBindingObserver {
   GpsDataManager();
   
   StreamSubscription<Position>? _gpsSubscription;
-  final StreamController<ProcessedGpsData> _dataController = 
+  final StreamController<ProcessedGpsData> _dataController =
       StreamController<ProcessedGpsData>.broadcast();
-  
-  ProcessedGpsData _currentData = const ProcessedGpsData(
+
+  ProcessedGpsData _currentData = ProcessedGpsData(
     speed: 0.0,
     heading: -1.0,
     displaySpeed: '--',
     displayHeading: 'N/A',
     isSpeedValid: false,
     isHeadingValid: false,
+    timestamp: DateTime.now(),
   );
-  
+
   Timer? _staleDataTimer;
+  Timer? _backgroundGracePeriodTimer;
   bool _isDisposed = false;
 
+  // Overlay provider reference for background decision-making
+  OverlayProvider? _overlayProvider;
+
+  // Lifecycle and precision state
+  LocationAccuracy _currentAccuracy = LocationAccuracy.high;
+  bool _hasFirstFix = false;
+  DateTime? _firstFixTime;
+  bool _isAppInForeground = true;
+  bool _isGpsActive = false;
+
   // Public stream for UI components to subscribe to
   Stream<ProcessedGpsData> get dataStream => _dataController.stream;
   
@@ -33,7 +48,12 @@ class GpsDataManager extends ChangeNotifier {
   ProcessedGpsData get currentData => _currentData;
   
   bool _isInitialized = false;
-  
+
+  /// Set overlay provider reference for background GPS decision-making
+  void setOverlayProvider(OverlayProvider provider) {
+    _overlayProvider = provider;
+  }
+
   Future<void> initialize() async {
     if (_isInitialized) {
       Logger.warn('Already initialized, skipping...', 'GpsDataManager');
@@ -42,6 +62,9 @@ class GpsDataManager extends ChangeNotifier {
 
     Logger.info('Starting GPS manager initialization...', 'GpsDataManager');
 
+    // Register lifecycle observer
+    WidgetsBinding.instance.addObserver(this);
+
     // Check GPS permissions and services first
     final serviceEnabled = await GpsService.isLocationServiceEnabled();
     Logger.debug('Location service enabled: $serviceEnabled', 'GpsDataManager');
@@ -82,11 +105,13 @@ class GpsDataManager extends ChangeNotifier {
       );
 
       Logger.info('Initial GPS fix obtained', 'GpsDataManager');
+      _hasFirstFix = true;
+      _firstFixTime = DateTime.now();
       _onPositionUpdate(initialPosition);
 
-      // Then start position stream with shorter timeout for updates
-      Logger.debug('Starting GPS stream with short update timeout...', 'GpsDataManager');
-      _gpsSubscription = GpsService.positionStream.listen(
+      // Then start position stream with current accuracy
+      Logger.debug('Starting GPS stream with accuracy: $_currentAccuracy', 'GpsDataManager');
+      _gpsSubscription = GpsService.createPositionStream(accuracy: _currentAccuracy).listen(
         (Position position) {
           Logger.debug('GPS callback triggered', 'GpsDataManager');
           _onPositionUpdate(position);
@@ -104,6 +129,8 @@ class GpsDataManager extends ChangeNotifier {
       Logger.info('GPS stream subscription created', 'GpsDataManager');
       Logger.debug('Subscription details: ${_gpsSubscription.runtimeType}', 'GpsDataManager');
 
+      _isGpsActive = true;
+      _updateWakeLock();
       _isInitialized = true;
 
     } catch (e, stackTrace) {
@@ -150,9 +177,18 @@ class GpsDataManager extends ChangeNotifier {
       displayHeading: displayHeading,
       isSpeedValid: speedValid,
       isHeadingValid: headingValid,
+      timestamp: DateTime.now(),
     );
 
     _updateData(processedData);
+
+    // Check precision switching after first-fix gate
+    if (_hasFirstFix && _firstFixTime != null) {
+      final timeSinceFirstFix = DateTime.now().difference(_firstFixTime!);
+      if (timeSinceFirstFix >= GpsConfig.PRECISION_SWITCH_FIRST_FIX_DELAY) {
+        _checkPrecisionSwitch(position.speed);
+      }
+    }
   }
   
   void _onGpsError(dynamic error) {
@@ -210,24 +246,176 @@ class GpsDataManager extends ChangeNotifier {
   // Format speed for specific unit (used by UI)
   String getFormattedSpeed(SpeedUnit unit) {
     if (_currentData.displaySpeed == '--') return '--';
-    
+
     final convertedSpeed = unit.convert(_currentData.speed);
     return convertedSpeed < 1.0 ? '--' : convertedSpeed.toStringAsFixed(1);
   }
+
+  /// Check if GPS precision should be switched based on speed
+  void _checkPrecisionSwitch(double speedMps) {
+    if (_currentAccuracy == LocationAccuracy.high) {
+      // Switch to MEDIUM if speed drops below down-threshold
+      if (speedMps < GpsConfig.PRECISION_DOWN_THRESHOLD_MPS) {
+        _switchPrecision(LocationAccuracy.medium);
+      }
+    } else if (_currentAccuracy == LocationAccuracy.medium) {
+      // Switch to HIGH if speed exceeds up-threshold
+      if (speedMps > GpsConfig.PRECISION_UP_THRESHOLD_MPS) {
+        _switchPrecision(LocationAccuracy.high);
+      }
+    }
+  }
+
+  /// Switch GPS precision and restart stream with new accuracy
+  void _switchPrecision(LocationAccuracy newAccuracy) {
+    if (_currentAccuracy == newAccuracy) return;
+
+    final speedKmh = _currentData.speed * 3.6;
+    Logger.debug('Precision switched to $newAccuracy at ${speedKmh.toStringAsFixed(1)} km/h', 'GpsDataManager');
+
+    _currentAccuracy = newAccuracy;
+
+    // Cancel existing subscription and create new one with new accuracy
+    _gpsSubscription?.cancel();
+    _gpsSubscription = GpsService.createPositionStream(accuracy: newAccuracy).listen(
+      (Position position) {
+        Logger.debug('GPS callback triggered', 'GpsDataManager');
+        _onPositionUpdate(position);
+      },
+      onError: (error) {
+        Logger.error('GPS stream error callback: $error', 'GpsDataManager');
+        _onGpsError(error);
+      },
+      onDone: () {
+        Logger.warn('GPS stream done callback - stream ended', 'GpsDataManager');
+      },
+      cancelOnError: false,
+    );
+  }
+
+  /// Handle app lifecycle state changes for background GPS management
+  @override
+  void didChangeAppLifecycleState(AppLifecycleState state) {
+    if (state == AppLifecycleState.paused) {
+      // App going to background
+      _isAppInForeground = false;
+      final overlayActive = _overlayProvider?.isOverlayActive ?? false;
+
+      if (overlayActive) {
+        Logger.info('App backgrounded with overlay active - maintaining full GPS', 'GpsDataManager');
+      } else {
+        Logger.info('App backgrounded without overlay - starting ${TimingConfig.BACKGROUND_GRACE_PERIOD.inSeconds}s grace period', 'GpsDataManager');
+        _backgroundGracePeriodTimer?.cancel();
+        _backgroundGracePeriodTimer = Timer(TimingConfig.BACKGROUND_GRACE_PERIOD, _onGracePeriodExpired);
+      }
+
+      _updateWakeLock();
+    } else if (state == AppLifecycleState.resumed) {
+      // App returning to foreground
+      _isAppInForeground = true;
+
+      // Cancel grace period if running
+      _backgroundGracePeriodTimer?.cancel();
+      _backgroundGracePeriodTimer = null;
+
+      // Restart GPS if it was stopped
+      if (_gpsSubscription == null && _isInitialized) {
+        _restartGps();
+      }
+
+      _updateWakeLock();
+    }
+  }
+
+  /// Grace period timer callback - re-check overlay state before stopping GPS
+  void _onGracePeriodExpired() {
+    // Race condition protection: overlay may have been activated during grace period
+    final overlayActive = _overlayProvider?.isOverlayActive ?? false;
+
+    if (overlayActive) {
+      Logger.info('Overlay became active during grace period - keeping GPS', 'GpsDataManager');
+      _backgroundGracePeriodTimer = null;
+      return;
+    }
+
+    _stopGps();
+    _backgroundGracePeriodTimer = null;
+  }
+
+  /// Stop GPS tracking (backgrounded without overlay)
+  void _stopGps() {
+    _gpsSubscription?.cancel();
+    _gpsSubscription = null;
+    _isGpsActive = false;
+    _staleDataTimer?.cancel();
+    _updateWakeLock();
+    Logger.info('GPS stopped (backgrounded without overlay)', 'GpsDataManager');
+  }
+
+  /// Restart GPS tracking (app foregrounded)
+  void _restartGps() {
+    Logger.info('Restarting GPS (app foregrounded)', 'GpsDataManager');
+
+    _gpsSubscription = GpsService.createPositionStream(accuracy: _currentAccuracy).listen(
+      (Position position) {
+        Logger.debug('GPS callback triggered', 'GpsDataManager');
+        _onPositionUpdate(position);
+      },
+      onError: (error) {
+        Logger.error('GPS stream error callback: $error', 'GpsDataManager');
+        _onGpsError(error);
+      },
+      onDone: () {
+        Logger.warn('GPS stream done callback - stream ended', 'GpsDataManager');
+      },
+      cancelOnError: false,
+    );
+
+    _isGpsActive = true;
+    _updateWakeLock();
+  }
+
+  /// Update wake lock based on GPS state and app visibility
+  void _updateWakeLock() {
+    final overlayActive = _overlayProvider?.isOverlayActive ?? false;
+    final shouldKeepAwake = _isGpsActive && (overlayActive || _isAppInForeground);
+
+    if (shouldKeepAwake) {
+      WakelockPlus.enable();
+      Logger.debug('Wake lock enabled (GPS: $_isGpsActive, overlay: $overlayActive, foreground: $_isAppInForeground)', 'GpsDataManager');
+    } else {
+      WakelockPlus.disable();
+      Logger.debug('Wake lock disabled (GPS: $_isGpsActive, overlay: $overlayActive, foreground: $_isAppInForeground)', 'GpsDataManager');
+    }
+  }
   
   @override
   void dispose() {
     _isDisposed = true;
     Logger.info('Disposing GPS manager...', 'GpsDataManager');
+
+    // Remove lifecycle observer BEFORE super.dispose()
+    WidgetsBinding.instance.removeObserver(this);
+
+    // Cancel all timers and subscriptions
+    _backgroundGracePeriodTimer?.cancel();
+    _backgroundGracePeriodTimer = null;
+
     if (_gpsSubscription != null) {
       Logger.debug('Cancelling GPS subscription...', 'GpsDataManager');
       _gpsSubscription?.cancel();
       _gpsSubscription = null;
     }
-    Logger.debug('Closing data controller...', 'GpsDataManager');
+
     _staleDataTimer?.cancel();
     _staleDataTimer = null;
+
+    Logger.debug('Closing data controller...', 'GpsDataManager');
     _dataController.close();
+
+    // Disable wake lock as safety net
+    WakelockPlus.disable();
+
     Logger.info('GPS manager disposed', 'GpsDataManager');
     super.dispose();
   }