diff --git a/inventory/src/components/chat/ChatRoom.tsx b/inventory/src/components/chat/ChatRoom.tsx
index 9f1f2a9..33821f9 100644
--- a/inventory/src/components/chat/ChatRoom.tsx
+++ b/inventory/src/components/chat/ChatRoom.tsx
@@ -216,14 +216,42 @@ export function ChatRoom({ roomId, selectedUserId }: ChatRoomProps) {
   };
 
   const formatTime = (timestamp: string) => {
-    const date = new Date(timestamp);
+    // The stored timestamps are actually in Eastern Time but labeled as UTC
+    // We need to compensate by treating them as UTC and then converting back to Eastern
+    const originalDate = new Date(timestamp);
+    
+    // Subtract 4 hours to compensate for the EDT offset (adjust to 5 hours for EST months)
+    // This assumes the original data was incorrectly stored as UTC when it was actually EDT/EST
+    const isDST = (date: Date) => {
+      const jan = new Date(date.getFullYear(), 0, 1);
+      const jul = new Date(date.getFullYear(), 6, 1);
+      return date.getTimezoneOffset() < Math.max(jan.getTimezoneOffset(), jul.getTimezoneOffset());
+    };
+    
+    // Determine if the timestamp falls in DST period for Eastern Time
+    const offsetHours = isDST(originalDate) ? 4 : 5; // EDT = UTC-4, EST = UTC-5
+    const correctedDate = new Date(originalDate.getTime() - (offsetHours * 60 * 60 * 1000));
+    
     const now = new Date();
-    const isToday = date.toDateString() === now.toDateString();
+    const timeZone = 'America/New_York';
+    
+    // Compare dates in Eastern Time to ensure correct "today" detection
+    const dateInET = correctedDate.toLocaleDateString([], { timeZone });
+    const nowInET = now.toLocaleDateString([], { timeZone });
+    const isToday = dateInET === nowInET;
     
     if (isToday) {
-      return date.toLocaleTimeString([], { hour: '2-digit', minute: '2-digit' });
+      return correctedDate.toLocaleTimeString([], { 
+        hour: '2-digit', 
+        minute: '2-digit',
+        timeZone 
+      });
     } else {
-      return date.toLocaleDateString() + ' ' + date.toLocaleTimeString([], { hour: '2-digit', minute: '2-digit' });
+      return correctedDate.toLocaleDateString([], { timeZone }) + ' ' + correctedDate.toLocaleTimeString([], { 
+        hour: '2-digit', 
+        minute: '2-digit',
+        timeZone 
+      });
     }
   };