diff --git a/prd.json b/prd.json
index 3c6e280..923864a 100644
--- a/prd.json
+++ b/prd.json
@@ -31,7 +31,7 @@
         "Typecheck passes"
       ],
       "priority": 2,
-      "passes": false,
+      "passes": true,
       "notes": "Dependencies: US-054"
     },
     {
@@ -51,7 +51,7 @@
         "Verify in browser using dev-browser skill"
       ],
       "priority": 3,
-      "passes": false,
+      "passes": true,
       "notes": ""
     },
     {
diff --git a/progress.txt b/progress.txt
index 89cf9ce..c4bf798 100644
--- a/progress.txt
+++ b/progress.txt
@@ -29,6 +29,7 @@
 - Settings page at `/dashboard/settings` reuses dashboard layout; re-auth via signInWithPassword before updateUser
 - Character/Variable types (`Character`, `Variable`) and extracted node data types (`DialogueNodeData`, `VariableNodeData`) are in `src/types/flowchart.ts`
 - New JSONB fields (characters, variables) must be defaulted to `[]` when reading from DB in page.tsx to handle pre-existing data
+- Reusable `Combobox` component at `src/components/editor/Combobox.tsx` - use for all character/variable dropdowns. Props: items (ComboboxItem[]), value, onChange, placeholder, onAddNew
 
 ---
 
@@ -42,3 +43,27 @@
   - `flowchart_data` is a JSONB column in Supabase, so it comes as `any` type. Always provide defaults for new fields when reading from DB to handle existing data without those fields.
   - The new `characterId` and `variableId` fields are optional alongside existing `speaker`/`variableName` fields to support migration from free-text to referenced-entity pattern.
 ---
+
+## 2026-01-23 - US-055
+- What was implemented: Database migration to update flowchart_data JSONB default to include `characters: []` and `variables: []`
+- Files changed:
+  - `supabase/migrations/20260123000000_add_characters_variables_to_flowchart_data.sql` - New migration that alters the default value for the flowchart_data column and documents the expected JSONB structure
+- **Learnings for future iterations:**
+  - Since characters and variables are stored within the existing flowchart_data JSONB column (not as separate tables), schema changes are minimal - just updating the column default. The real data integrity is handled at the application layer.
+  - The app-side defaults in page.tsx (from US-054) already handle existing projects gracefully, so no data migration of existing rows is needed.
+  - For JSONB-embedded arrays, the pattern is: update the DB default for new rows + handle missing fields in app code for old rows.
+---
+
+## 2026-01-23 - US-065
+- What was implemented: Reusable searchable combobox component at `src/components/editor/Combobox.tsx`
+- Files changed:
+  - `src/components/editor/Combobox.tsx` - New component with searchable dropdown, keyboard navigation, color swatches, badges, "Add new..." option, and auto-positioning
+- **Learnings for future iterations:**
+  - The Combobox exports both the default component and the `ComboboxItem` type for consumers to use
+  - Props: `items` (ComboboxItem[]), `value` (string | undefined), `onChange` (id: string) => void, `placeholder` (string), `onAddNew` (() => void, optional)
+  - ComboboxItem shape: `{ id: string, label: string, color?: string, badge?: string }`
+  - The component uses neutral zinc colors for borders/backgrounds (not blue/green/orange) so it can be reused across different node types
+  - Dropdown auto-positions above or below based on available viewport space (200px threshold)
+  - Keyboard: ArrowDown/Up navigate, Enter selects, Escape closes
+  - The component is designed to be a drop-in replacement for text inputs in node components (same `w-full` and `text-sm` sizing)
+---