┌─────────────────────────────────────────────────────────────┐
│                    Component Decision Tree                   │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│  Does it need interactivity (onClick, onChange, etc.)?       │
│  ├── YES → Client Component ("use client")                   │
│  └── NO ↓                                                    │
│                                                              │
│  Does it use React hooks (useState, useEffect, etc.)?        │
│  ├── YES → Client Component ("use client")                   │
│  └── NO ↓                                                    │
│                                                              │
│  Does it need browser APIs (localStorage, window)?           │
│  ├── YES → Client Component ("use client")                   │
│  └── NO → Server Component (default, no directive needed)    │
│                                                              │
└─────────────────────────────────────────────────────────────┘

// app/tasks/page.tsx - NO "use client" directive
import { getTasks } from "@/lib/api";

export default async function TasksPage() {
  const tasks = await getTasks(); // Direct async data fetching

  return (
    <main>
      <h1>Tasks</h1>
      <ul>
        {tasks.map((task) => (
          <li key={task.id}>{task.title}</li>
        ))}
      </ul>
    </main>
  );
}

"use client"; // Required directive at top of file

import { useState } from "react";

export function TaskForm({ onSubmit }: { onSubmit: (title: string) => void }) {
  const [title, setTitle] = useState("");

  return (
    <form onSubmit={(e) => { e.preventDefault(); onSubmit(title); }}>
      <input
        value={title}
        onChange={(e) => setTitle(e.target.value)}
        placeholder="Task title"
      />
      <button type="submit">Add Task</button>
    </form>
  );
}

// app/tasks/actions.ts
"use server";

import { revalidatePath } from "next/cache";

export async function createTask(formData: FormData) {
  const title = formData.get("title") as string;

  await fetch(`${process.env.API_URL}/tasks`, {
    method: "POST",
    body: JSON.stringify({ title }),
  });

  revalidatePath("/tasks"); // Refresh the page data
}

// app/tasks/page.tsx - Using the action
import { createTask } from "./actions";

export default function TasksPage() {
  return (
    <form action={createTask}>
      <input name="title" placeholder="Task title" />
      <button type="submit">Add Task</button>
    </form>
  );
}

app/
├── layout.tsx           # Root layout (Server Component)
├── page.tsx             # Home page
├── globals.css          # Global styles
├── tasks/
│   ├── page.tsx         # /tasks route
│   ├── actions.ts       # Server Actions
│   ├── [id]/
│   │   └── page.tsx     # /tasks/:id route
│   └── components/
│       └── TaskForm.tsx # Client Component
├── api/
│   └── tasks/
│       └── route.ts     # API route handler
└── auth/
    └── [...nextauth]/
        └── route.ts     # Better Auth handler