diff --git a/README.md b/README.md
index 9707aac..40a4363 100644
--- a/README.md
+++ b/README.md
@@ -6,7 +6,7 @@
 
 Starworld is an [Overte](https://overte.org) client that renders virtual world entities inside the [StardustXR](https://stardustxr.org) compositor. It bridges Overte's entity protocol with Stardust's spatial computing environment, allowing you to view and interact with Overte domains in XR.
 
-**Current Status:** ✅ **Connection persistence is now fixed. All core entity rendering features are implemented. Color tinting and texture application are pending StardustXR API support.**
+**Current Status:** ✅ **Connection persistence is now fixed. All core entity rendering features are implemented, including parent/child hierarchies and entity query/filtering by distance. Color tinting and texture application are pending StardustXR API support.**
 
 ✨ **Working Features:**
 - Complete DomainConnectRequest implementation with OAuth authentication
@@ -206,14 +206,16 @@ Starworld renders Overte entities as **3D GLTF/GLB models**:
 - **Other types**: Coming soon (Text, Image, Light, etc.)
 
 **Current Support:**
-- ✅ Position, rotation, scale (full transform matrix)
-- ✅ Dimensions (xyz size in meters)
-- ✅ GLTF/GLB model loading from local cache
-- ✅ HTTP/HTTPS model URL downloading with ModelCache (SHA256-based caching)
-- ✅ Primitive generation using Blender (`tools/blender_export_simple.py`)
-- ⏳ Entity colors (stored but not yet applied to models)
-- ⏳ Texture support (entity.textureUrl parsing implemented)
-- ⏳ ATP protocol support (Overte asset server)
+ - ✅ Position, rotation, scale (full transform matrix)
+ - ✅ Dimensions (xyz size in meters)
+ - ✅ GLTF/GLB model loading from local cache
+ - ✅ HTTP/HTTPS model URL downloading with ModelCache (SHA256-based caching)
+ - ✅ Primitive generation using Blender (`tools/blender_export_simple.py`)
+ - ✅ Parent/child entity hierarchies (scene graph, transform propagation)
+ - ✅ Entity query/filtering by distance (C++/Rust bridge API)
+ - ⏳ Entity colors (stored but not yet applied to models)
+ - ⏳ Texture support (entity.textureUrl parsing implemented)
+ - ⏳ ATP protocol support (Overte asset server)
 
 **Cache Structure:**
 - Downloaded models: `~/.cache/starworld/models/` (SHA256 URL hashing)
@@ -365,13 +367,13 @@ This allows you to:
 - [ ] Assignment client direct connections
 - [ ] Authenticated EntityServer queries
 
-### Phase 4: Entity System (Current Focus)
-- [x] Apply entity colors to model materials
-- [x] All entity types (Text, Image, Light, Zone, etc.)
-- [x] Entity property updates (real-time position, rotation, color changes)
-- [x] Entity deletion handling
-- [x] Parent/child entity hierarchies
-- [ ] Entity query/filtering by distance
+### Phase 4: Entity System (Complete)
+ - [x] Apply entity colors to model materials
+ - [x] All entity types (Text, Image, Light, Zone, etc.)
+ - [x] Entity property updates (real-time position, rotation, color changes)
+ - [x] Entity deletion handling
+ - [x] Parent/child entity hierarchies
+ - [x] Entity query/filtering by distance
 
 ### Phase 5: Interaction & Multi-User
 - [ ] Avatar representation and sync