diff --git a/lib/config/overlay_constants.dart b/lib/config/overlay_constants.dart
index 3fc0536..f798986 100644
--- a/lib/config/overlay_constants.dart
+++ b/lib/config/overlay_constants.dart
@@ -34,4 +34,16 @@ abstract class OverlayConfig {
 
   /// Default overlay height for calculations
   static const double DEFAULT_OVERLAY_HEIGHT = 140.0;
+
+  /// Time after which overlay dims speed display due to stale data
+  static const Duration STALENESS_DIM_THRESHOLD = Duration(seconds: 3);
+
+  /// Time after which overlay shows dashes instead of speed
+  static const Duration STALENESS_DASH_THRESHOLD = Duration(seconds: 10);
+
+  /// Opacity value for dimmed stale state
+  static const double STALENESS_DIM_OPACITY = 0.5;
+
+  /// Interval for checking data staleness
+  static const Duration STALENESS_CHECK_INTERVAL = Duration(seconds: 1);
 }
diff --git a/lib/config/timing_constants.dart b/lib/config/timing_constants.dart
index c80718e..43e71d9 100644
--- a/lib/config/timing_constants.dart
+++ b/lib/config/timing_constants.dart
@@ -13,4 +13,7 @@ abstract class TimingConfig {
 
   /// Delay for long press gesture signal
   static const Duration LONG_PRESS_SIGNAL_DELAY = Duration(milliseconds: 50);
+
+  /// GPS grace period - continues for 30s after overlay close when backgrounded
+  static const Duration GPS_GRACE_PERIOD = Duration(seconds: 30);
 }
diff --git a/lib/services/overlay_service.dart b/lib/services/overlay_service.dart
new file mode 100644
index 0000000..7578339
--- /dev/null
+++ b/lib/services/overlay_service.dart
@@ -0,0 +1,96 @@
+import 'package:flutter_overlay_window/flutter_overlay_window.dart';
+import 'package:permission_handler/permission_handler.dart';
+import 'package:retry/retry.dart';
+import 'logger.dart';
+
+/// Service wrapper for FlutterOverlayWindow platform calls with retry logic
+/// Encapsulates all overlay operations with error handling and verification
+class OverlayService {
+  /// Retry configuration for platform operations
+  static final RetryOptions _retryOptions = RetryOptions(
+    maxAttempts: 3,
+    delayFactor: const Duration(milliseconds: 200),
+  );
+
+  /// Show overlay window with retry logic and verification
+  /// Returns true if overlay successfully opened and verified active
+  Future<bool> showOverlay({
+    required int width,
+    required int height,
+  }) async {
+    try {
+      await _retryOptions.retry(
+        () async {
+          await FlutterOverlayWindow.showOverlay(
+            enableDrag: true,
+            overlayTitle: "Speedometer",
+            overlayContent: 'Speedo overlay active',
+            flag: OverlayFlag.defaultFlag,
+            visibility: NotificationVisibility.visibilityPublic,
+            positionGravity: PositionGravity.none,
+            width: width,
+            height: height,
+          );
+        },
+      );
+
+      // Verify overlay actually opened
+      final isActive = await FlutterOverlayWindow.isActive();
+      if (!isActive) {
+        Logger.error('Overlay showOverlay succeeded but isActive returned false', 'OverlayService');
+        return false;
+      }
+
+      return true;
+    } catch (e) {
+      Logger.error('Failed to show overlay after retries: $e', 'OverlayService');
+      return false;
+    }
+  }
+
+  /// Close overlay window with retry logic
+  /// Returns true on success, false on failure after retries
+  Future<bool> closeOverlay() async {
+    try {
+      await _retryOptions.retry(
+        () async {
+          await FlutterOverlayWindow.closeOverlay();
+        },
+      );
+      return true;
+    } catch (e) {
+      Logger.error('Failed to close overlay after retries: $e', 'OverlayService');
+      return false;
+    }
+  }
+
+  /// Share data with overlay window (fire-and-forget)
+  /// Does NOT retry - data loss is expected and handled by staleness detection
+  Future<void> shareData(Map<String, dynamic> data) async {
+    try {
+      await FlutterOverlayWindow.shareData(data);
+    } catch (e) {
+      Logger.warn('Failed to share data with overlay: $e', 'OverlayService');
+    }
+  }
+
+  /// Check if overlay window is currently active
+  /// Returns false on error
+  Future<bool> isActive() async {
+    try {
+      return await FlutterOverlayWindow.isActive();
+    } catch (e) {
+      Logger.error('Failed to check overlay active status: $e', 'OverlayService');
+      return false;
+    }
+  }
+
+  /// Stream of messages from overlay window
+  /// Direct delegation to platform channel
+  Stream<dynamic> get overlayListener => FlutterOverlayWindow.overlayListener;
+
+  /// Check if system alert window permission is granted
+  Future<bool> checkPermission() async {
+    return await Permission.systemAlertWindow.isGranted;
+  }
+}
diff --git a/pubspec.yaml b/pubspec.yaml
index 9f5c551..00a16b0 100644
--- a/pubspec.yaml
+++ b/pubspec.yaml
@@ -33,6 +33,9 @@ dependencies:
   # Persistent settings storage
   shared_preferences: ^2.3.4
 
+  # Retry logic for platform operations
+  retry: ^3.1.2
+
 
 dev_dependencies:
   flutter_test: