diff --git a/frontend/src/components/AddTagPopoverContent/AddTagPopoverContent.tsx b/frontend/src/components/AddTagPopoverContent/AddTagPopoverContent.tsx
new file mode 100644
index 000000000..a8b965269
--- /dev/null
+++ b/frontend/src/components/AddTagPopoverContent/AddTagPopoverContent.tsx
@@ -0,0 +1,78 @@
+
+import { faPlus } from "@fortawesome/free-solid-svg-icons";
+import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
+
+import { Checkbox, PopoverContent } from "@app/components/v2";
+
+import { WsTag } from "../../hooks/api/tags/types";
+
+interface Props {
+    wsTags: WsTag[] | undefined;
+    secKey: string;
+    selectedTagIds: Record<string, boolean>;
+    handleSelectTag: (wsTag: WsTag) => void;
+    handleTagOnMouseEnter: (wsTag: WsTag) => void;
+    handleTagOnMouseLeave: () => void;
+    checkIfTagIsVisible: (wsTag: WsTag) => boolean;
+    handleOnCreateTagOpen: () => void
+}
+
+const AddTagPopoverContent = ({
+    wsTags,
+    secKey,
+    selectedTagIds,
+    handleSelectTag,
+    handleTagOnMouseEnter,
+    handleTagOnMouseLeave,
+    checkIfTagIsVisible,
+    handleOnCreateTagOpen
+}: Props) => {
+    return (
+        <PopoverContent
+            side="left"
+            className="relative max-h-96 w-auto min-w-[200px] p-2 overflow-y-auto overflow-x-hidden border border-mineshaft-600 bg-mineshaft-800 text-bunker-200"
+            hideCloseBtn
+        >
+            <div className=" text-center text-sm font-medium text-bunker-200">
+                Add tags to {secKey || "this secret"}
+            </div>
+            <div className="absolute left-0 w-full border-mineshaft-600 border-t mt-2" />
+            <div className="flex flex-col space-y-1.5">
+                {wsTags?.map((wsTag: WsTag) => (
+                    <div key={`tag-${wsTag._id}`} className="mt-4 h-[32px] relative flex items-center  justify-start hover:border-mineshaft-600 hover:border   hover:bg-mineshaft-700  p-2 rounded-md  hover:text-bunker-200 bg-none"
+                        onClick={() => handleSelectTag(wsTag)}
+                        onMouseEnter={() => handleTagOnMouseEnter(wsTag)}
+                        onMouseLeave={() => handleTagOnMouseLeave()}
+                        tabIndex={0} role="button"
+                        onKeyDown={() => { }}>
+                        {
+
+                            (checkIfTagIsVisible(wsTag) || selectedTagIds?.[wsTag.slug]) && <Checkbox
+                                id="autoCapitalization"
+                                isChecked={selectedTagIds?.[wsTag.slug]}
+                                className="absolute top-[50%] translate-y-[-50%] left-[10px] "
+                                checkIndicatorBg={`${!selectedTagIds?.[wsTag.slug] ? "text-transparent" : "text-mineshaft-800"}`}
+                            />
+                        }
+                        <div className="ml-7 flex items-center gap-3">
+                            <div className="w-[10px] h-[10px] rounded-full" style={{ background: wsTag?.tagColor ? wsTag.tagColor : "#bec2c8" }}> </div>
+                            <span >
+                                {wsTag.slug}
+                            </span>
+                        </div>
+                    </div>
+                ))}
+                <div
+                    className="h-[32px] relative flex items-center cursor-pointer   justify-start  border-mineshaft-600 border   bg-mineshaft-700 p-2 rounded-md  hover:text-bunker-200 bg-none"
+                    onClick={() => handleOnCreateTagOpen()}
+                    tabIndex={0} role="button"
+                    onKeyDown={() => { }}>
+                    <FontAwesomeIcon icon={faPlus} className="ml-1 mr-2" />
+                    <span> Add new tag</span>
+                </div>
+            </div>
+        </PopoverContent>
+    )
+}
+
+export default AddTagPopoverContent
\ No newline at end of file
diff --git a/frontend/src/components/v2/Checkbox/Checkbox.tsx b/frontend/src/components/v2/Checkbox/Checkbox.tsx
index 3c546f067..64ec0a54a 100644
--- a/frontend/src/components/v2/Checkbox/Checkbox.tsx
+++ b/frontend/src/components/v2/Checkbox/Checkbox.tsx
@@ -8,11 +8,12 @@ export type CheckboxProps = Omit<
   CheckboxPrimitive.CheckboxProps,
   "checked" | "disabled" | "required"
 > & {
-  children: ReactNode;
+  children?: ReactNode;
   id: string;
   isDisabled?: boolean;
   isChecked?: boolean;
   isRequired?: boolean;
+  checkIndicatorBg?: string | undefined;
 };
 
 export const Checkbox = ({
@@ -22,6 +23,7 @@ export const Checkbox = ({
   isChecked,
   isDisabled,
   isRequired,
+  checkIndicatorBg,
   ...props
 }: CheckboxProps): JSX.Element => {
   return (
@@ -39,7 +41,7 @@ export const Checkbox = ({
         {...props}
         id={id}
       >
-        <CheckboxPrimitive.Indicator className="text-bunker-800">
+        <CheckboxPrimitive.Indicator className={`${checkIndicatorBg || "text-bunker-800"}`}>
           <FontAwesomeIcon icon={faCheck} size="sm" />
         </CheckboxPrimitive.Indicator>
       </CheckboxPrimitive.Root>
diff --git a/frontend/src/components/v2/Tag/Tag.tsx b/frontend/src/components/v2/Tag/Tag.tsx
index a2de200ef..10c1d6246 100644
--- a/frontend/src/components/v2/Tag/Tag.tsx
+++ b/frontend/src/components/v2/Tag/Tag.tsx
@@ -1,17 +1,10 @@
 import { ReactNode } from "react";
-import { faClose } from "@fortawesome/free-solid-svg-icons";
-import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
 import { cva, VariantProps } from "cva";
 import { twMerge } from "tailwind-merge";
 
 type Props = {
   children: ReactNode;
   className?: string;
-  onClose?: () => void;
-  color?: string;
-  styles?: Record<string, string>
-  isDisabled?: boolean;
-  tagColor: string;
 } & VariantProps<typeof tagVariants>;
 
 const tagVariants = cva(
@@ -34,12 +27,7 @@ export const Tag = ({
   children,
   className,
   colorSchema = "gray",
-  color,
-  isDisabled,
-  size = "sm",
-  onClose,
-  styles = {}
-}: Props) => (
+  size = "sm" }: Props) => (
   <div
     className={twMerge(tagVariants({ colorSchema, className, size }))}
   >
diff --git a/frontend/src/const.ts b/frontend/src/const.ts
index 7f24f8fc5..267d80ccd 100644
--- a/frontend/src/const.ts
+++ b/frontend/src/const.ts
@@ -55,65 +55,65 @@ export const leaveConfirmDefaultMessage = "Your changes will be lost if you leav
 export const secretTagsColors = [
   {
     id: 1,
-    hex: '#bec2c8',
+    hex: "#bec2c8",
     rgba: "rgb(128,128,128, 0.8)",
-    name: 'Grey',
+    name: "Grey",
     selected: true
   },
   {
     id: 2,
-    hex: '#95a2b3',
+    hex: "#95a2b3",
     rgba: "rgb(0,0,255, 0.8)",
-    name: 'blue',
+    name: "blue",
     selected: false
   },
   {
     id: 3,
-    hex: '#5e6ad2',
+    hex: "#5e6ad2",
     rgba: "rgb(128,0,128, 0.8)",
-    name: 'Purple',
+    name: "Purple",
     selected: false
   },
   {
     id: 4,
-    hex: '#26b5ce',
+    hex: "#26b5ce",
     rgba: "rgb(0,128,128, 0.8)",
-    name: 'Teal',
+    name: "Teal",
     selected: false
   },
   {
     id: 5,
-    hex: '#4cb782',
+    hex: "#4cb782",
     rgba: "rgb(0,128,0, 0.8)",
-    name: 'Green',
+    name: "Green",
     selected: false
   },
   {
     id: 6,
-    hex: '#f2c94c',
+    hex: "#f2c94c",
     rgba: "rgb(255,255,0, 0.8)",
-    name: 'Yellow',
+    name: "Yellow",
     selected: false
   },
   {
     id: 7,
-    hex: '#f2994a',
+    hex: "#f2994a",
     rgba: "rgb(128,128,0, 0.8)",
-    name: 'Orange',
+    name: "Orange",
     selected: false
   },
   {
     id: 8,
-    hex: '#f7c8c1',
+    hex: "#f7c8c1",
     rgba: "rgb(128,0,0, 0.8)",
-    name: 'Pink',
+    name: "Pink",
     selected: false
   },
   {
     id: 9,
-    hex: '#eb5757',
+    hex: "#eb5757",
     rgba: "rgb(255,0,0, 0.8)",
-    name: 'Red',
+    name: "Red",
     selected: false
   },
 ]
\ No newline at end of file
diff --git a/frontend/src/hooks/api/tags/queries.tsx b/frontend/src/hooks/api/tags/queries.tsx
index b0216828c..0b7fb7c17 100644
--- a/frontend/src/hooks/api/tags/queries.tsx
+++ b/frontend/src/hooks/api/tags/queries.tsx
@@ -7,9 +7,7 @@ import {
   CreateTagRes,
   DeleteTagDTO,
   DeleteWsTagRes,
-  QueryTag,
   UserWsTags,
-  WsTag
 } from "./types";
 
 const workspaceTags = {
@@ -32,33 +30,35 @@ export const useGetWsTags = (workspaceID: string) => {
   });
 }
 
+
 export const useCreateWsTag = () => {
   const queryClient = useQueryClient();
 
   return useMutation<CreateTagRes, {}, CreateTagDTO>({
-    mutationFn: async ({ workspaceID, tagName, tagColor, tagSlug }: QueryTag) => {
+    mutationFn: async ({ workspaceID, tagName, tagColor, tagSlug }) => {
       const { data } = await apiRequest.post(`/api/v2/workspace/${workspaceID}/tags`, {
         name: tagName,
-        tagColor: tagColor,
+        tagColor,
         slug: tagSlug
       })
       return data;
     },
-    onSuccess: (tagData: WsTag) => {
+    onSuccess: (tagData) => {
       queryClient.invalidateQueries(workspaceTags.getWsTags(tagData?.workspace));
     }
   });
 };
 
+
 export const useDeleteWsTag = () => {
   const queryClient = useQueryClient();
 
   return useMutation<DeleteWsTagRes, {}, DeleteTagDTO>({
-    mutationFn: async ({ tagID }: {tagID: string}) => {
+    mutationFn: async ({ tagID }) => {
       const { data } = await apiRequest.delete(`/api/v2/workspace/tags/${tagID}`);
       return data
     },
-    onSuccess: (tagData: WsTag) => {
+    onSuccess: (tagData) => {
       queryClient.invalidateQueries(workspaceTags.getWsTags(tagData?.workspace));
     }
   });
diff --git a/frontend/src/hooks/api/tags/types.ts b/frontend/src/hooks/api/tags/types.ts
index db162415e..de09f5ac4 100644
--- a/frontend/src/hooks/api/tags/types.ts
+++ b/frontend/src/hooks/api/tags/types.ts
@@ -4,6 +4,7 @@ export type WsTag = {
   _id: string;
   name: string;
   slug: string;
+  tagColor?: string;
   workspace: string;
   createdAt: string;
   updatedAt: string;
@@ -16,6 +17,7 @@ export type CreateTagDTO = {
   workspaceID: string;
   tagSlug: string;
   tagName: string;
+  tagColor: string;
 };
 
 export type CreateTagRes = {
@@ -23,6 +25,7 @@ export type CreateTagRes = {
   slug: string;
   workspace: string;
   createdAt: string;
+  tagColor?: string;
   user: string;
   _id: string;
 };
@@ -51,11 +54,4 @@ export type TagColor  =  {
   rgba: string
   name: string
   selected: boolean
-}
-
-export type QueryTag =  {
-  workspaceID: string; 
-  tagName: string; 
-  tagColor: string;
-  tagSlug: string
 }
\ No newline at end of file
diff --git a/frontend/src/views/DashboardPage/DashboardPage.tsx b/frontend/src/views/DashboardPage/DashboardPage.tsx
index 4c84aab84..8c9706c24 100644
--- a/frontend/src/views/DashboardPage/DashboardPage.tsx
+++ b/frontend/src/views/DashboardPage/DashboardPage.tsx
@@ -297,6 +297,8 @@ export const DashboardPage = () => {
     resolver: yupResolver(schema)
   });
 
+  console.log("300 => secrets", secrets)
+
   const {
     register,
     control,
diff --git a/frontend/src/views/DashboardPage/DashboardPage.utils.ts b/frontend/src/views/DashboardPage/DashboardPage.utils.ts
index a8e63f89f..bd0131e8e 100644
--- a/frontend/src/views/DashboardPage/DashboardPage.utils.ts
+++ b/frontend/src/views/DashboardPage/DashboardPage.utils.ts
@@ -58,7 +58,8 @@ const secretSchema = yup.object({
     yup.object({
       _id: yup.string().required(),
       name: yup.string().required(),
-      slug: yup.string().required()
+      slug: yup.string().required(),
+      tagColor: yup.string().nullable(),
     })
   ),
   overrideAction: yup.string().notRequired().oneOf(Object.values(SecretActionType)),
diff --git a/frontend/src/views/DashboardPage/components/CreateTagModal/CreateTagModal.tsx b/frontend/src/views/DashboardPage/components/CreateTagModal/CreateTagModal.tsx
index c378bf54c..e725249ed 100644
--- a/frontend/src/views/DashboardPage/components/CreateTagModal/CreateTagModal.tsx
+++ b/frontend/src/views/DashboardPage/components/CreateTagModal/CreateTagModal.tsx
@@ -1,17 +1,17 @@
-import { useState, useEffect } from 'react';
+import { useEffect, useState } from "react";
 import { Controller, useForm } from "react-hook-form";
-import { yupResolver } from "@hookform/resolvers/yup";
-import * as yup from "yup";
-import { secretTagsColors } from "~/const"
 import {
   faCheck
 } from "@fortawesome/free-solid-svg-icons";
-
 import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
+import { yupResolver } from "@hookform/resolvers/yup";
+import * as yup from "yup";
 
 import { Button, FormControl, Input, ModalClose, Tooltip } from "@app/components/v2";
-import { isValidHexColor } from "~/components/utilities/isValidHexColor";
-import { TagColor } from '~/hooks/api/tags/types';
+
+import { isValidHexColor } from "../../../../components/utilities/isValidHexColor";
+import { secretTagsColors } from "../../../../const"
+import { TagColor } from "../../../../hooks/api/tags/types";
 
 
 type Props = {
@@ -33,8 +33,8 @@ export const CreateTagModal = ({ onCreateTag }: Props): JSX.Element => {
     resolver: yupResolver(createTagSchema)
   });
 
-  const [tagsColors, setTagsColors] = useState<TagColor>(secretTagsColors)
-  const [selectedTagColor, setSelectedTagColor] = useState<TagColor>({})
+  const [tagsColors] = useState<TagColor[]>(secretTagsColors)
+  const [selectedTagColor, setSelectedTagColor] = useState<TagColor>(tagsColors[0])
   const [showHexInput, setShowHexInput] = useState<boolean>(false)
   const [tagColor, setTagColor] = useState<string>("")
 
@@ -46,12 +46,11 @@ export const CreateTagModal = ({ onCreateTag }: Props): JSX.Element => {
 
   useEffect(() => {
     const clonedTagColors = [...tagsColors]
-    for (const tagColor of clonedTagColors) {
-      if (tagColor.selected) {
-        setSelectedTagColor(tagColor)
-        setTagColor(tagColor.hex)
-        break
-      }
+    const selectedTagBgColor = clonedTagColors.find($tagColor => $tagColor.selected);
+
+    if (selectedTagBgColor) {
+      setSelectedTagColor(selectedTagBgColor);
+      setTagColor(selectedTagBgColor.hex);
     }
   }, [])
 
@@ -60,124 +59,133 @@ export const CreateTagModal = ({ onCreateTag }: Props): JSX.Element => {
     const tagsHexWrapper = document.querySelector(".tags-hex-wrapper")
 
     if (showHexInput) {
-      tagsList?.classList.add('hide-tags')
-      tagsList?.classList.remove('show-tags')
-      tagsHexWrapper?.classList.add('show-hex-input')
-      tagsHexWrapper?.classList.remove('hide-hex-input')
+      tagsList?.classList.add("hide-tags")
+      tagsList?.classList.remove("show-tags")
+      tagsHexWrapper?.classList.add("show-hex-input")
+      tagsHexWrapper?.classList.remove("hide-hex-input")
     } else {
-      tagsList?.classList.remove('hide-tags')
-      tagsList?.classList.add('show-tags')
-      tagsHexWrapper?.classList.remove('show-hex-input')
-      tagsHexWrapper?.classList.add('hide-hex-input')
+      tagsList?.classList.remove("hide-tags")
+      tagsList?.classList.add("show-tags")
+      tagsHexWrapper?.classList.remove("show-hex-input")
+      tagsHexWrapper?.classList.add("hide-hex-input")
     }
   }, [showHexInput])
 
-  const handleColorChange = (tagColor: TagColor) => {
-    const clonedTagColors = [...tagsColors]
-    const tagColorIndex = clonedTagColors.findIndex(_tagColor => _tagColor.id === tagColor.id)
-    const _selectedTagColor = clonedTagColors[tagColorIndex]
-    clonedTagColors.forEach(tagColor => {
-      tagColor.selected = false
-    })
-    if (selectedTagColor.id !== tagColor.id) {
-      _selectedTagColor.selected = !_selectedTagColor.selected
-      setSelectedTagColor(_selectedTagColor)
-      setTagColor(_selectedTagColor.hex)
+
+  const handleColorChange = (clickedTagColor: TagColor) => {
+    const updatedTagColors = [...tagsColors];
+    const clickedTagColorIndex = updatedTagColors.findIndex(($tagColor) => $tagColor.id === clickedTagColor.id);
+    const updatedClickedTagColor = updatedTagColors[clickedTagColorIndex];
+
+    updatedTagColors.forEach((tgColor) => {
+      // eslint-disable-next-line no-param-reassign
+      tgColor.selected = false;
+    });
+
+    if (selectedTagColor.id !== clickedTagColor.id) {
+      updatedClickedTagColor.selected = !updatedClickedTagColor.selected;
+      setSelectedTagColor(updatedClickedTagColor);
+      setTagColor(updatedClickedTagColor.hex);
     }
-  }
+  };
 
   return (
-    <>
-      <form onSubmit={handleSubmit(onFormSubmit)}>
-        <Controller
-          control={control}
-          name="name"
-          defaultValue=""
-          render={({ field, fieldState: { error } }) => (
-            <FormControl label="Tag Name" isError={Boolean(error)} errorText={error?.message}>
-              <Input {...field} placeholder="Type your tag name" />
-            </FormControl>
-          )}
-        />
+    <form onSubmit={handleSubmit(onFormSubmit)}>
+      <Controller
+        control={control}
+        name="name"
+        defaultValue=""
+        render={({ field, fieldState: { error } }) => (
+          <FormControl label="Tag Name" isError={Boolean(error)} errorText={error?.message}>
+            <Input {...field} placeholder="Type your tag name" />
+          </FormControl>
+        )}
+      />
 
-        <div className="mt-2">
-          <label className="text-mineshaft-400">Tag color</label>
-          <div className="flex gap-2 h-[50px]">
-            <div className="w-[12%]   h-[2.813rem]	 inline-flex font-inter items-center justify-center border relative rounded-md border-mineshaft-500  bg-mineshaft-900 hover:bg-mineshaft-800">
-              <div className={`w-[26px]  h-[26px] rounded-full`} style={{ background: `${tagColor}` }}></div>
+      <div className="mt-2">
+        <h6 className="text-mineshaft-400">Tag color</h6>
+        <div className="flex gap-2 h-[50px]">
+          <div className="w-[12%]   h-[2.813rem]	 inline-flex font-inter items-center justify-center border relative rounded-md border-mineshaft-500  bg-mineshaft-900 hover:bg-mineshaft-800">
+            <div className="w-[26px]  h-[26px] rounded-full" style={{ background: `${tagColor}` }} />
+          </div>
+
+          <div className="w-[88%] h-[2.813rem] flex-wrap inline-flex gap-3 items-center border  rounded-md border-mineshaft-500 bg-mineshaft-900 hover:bg-mineshaft-800 relative">
+            <div className="flex-wrap	 inline-flex gap-3 items-center secret-tags-wrapper pl-3">
+              {
+                tagsColors.map(($tagColor: TagColor) => {
+                  return (
+                    <div key={`tag-color-${$tagColor.id}`}>
+                      <Tooltip content={`${$tagColor.name}`}>
+                        <div className=" flex items-center justify-center w-[26px] h-[26px] hover:ring-offset-2 hover:ring-2 bg-[#bec2c8] border-2 p-2 hover:shadow-lg border-transparent hover:border-black rounded-full"
+                          key={`tag-${$tagColor.id}`}
+                          style={{ backgroundColor: `${$tagColor.hex}` }}
+
+                          onClick={() => handleColorChange($tagColor)}
+                          tabIndex={0} role="button"
+                          onKeyDown={() => { }}
+                        >
+                          {
+                            $tagColor.selected && <FontAwesomeIcon icon={faCheck} style={{ color: "#00000070" }} />
+                          }
+                        </div>
+                      </Tooltip>
+                    </div>
+                  )
+                })
+              }
             </div>
 
-            <div className="w-[88%] h-[2.813rem] flex-wrap inline-flex gap-3 items-center border relative rounded-md border-mineshaft-500 bg-mineshaft-900 hover:bg-mineshaft-800 relative">
-              {
-                (
-                  <div className="flex-wrap	 inline-flex gap-3 items-center secret-tags-wrapper pl-3">
-                    {
-                      tagsColors.map((tagColor: TagColor) => {
-                        return (
-                          <Tooltip content={`${tagColor.name}`}>
-                            <div className={`flex items-center justify-center w-[26px] h-[26px] hover:ring-offset-2 hover:ring-2 bg-[#bec2c8] border-2 p-2 hover:shadow-lg border-transparent hover:border-black rounded-full`} key={`tag-${tagColor.id}`} style={{ backgroundColor: `${tagColor.hex}` }} onClick={() => handleColorChange(tagColor)}>
-                              {
-                                tagColor.selected && <FontAwesomeIcon icon={faCheck} style={{ color: `#00000070` }} />
-                              }
-                            </div>
-                          </Tooltip>
-                        )
-                      })
-                    }
-                  </div>
-                )
-              }
+            <div className="flex items-center gap-2 px-2 tags-hex-wrapper" >
+              <div className="w-1/6	  flex items-center  relative rounded-md hover:bg-mineshaft-800">
+                {
+                  isValidHexColor(tagColor) && (
+                    <div className="w-[26px]  h-[26px] rounded-full flex items-center justify-center" style={{ background: `${tagColor}` }}>
+                      <FontAwesomeIcon icon={faCheck} style={{ color: "#00000070" }} />
+                    </div>
+                  )
+                }
 
-              <div className="flex items-center gap-2 px-2 tags-hex-wrapper" >
-                <div className="w-1/6	  flex items-center  relative rounded-md hover:bg-mineshaft-800">
-                  {
-                    isValidHexColor(tagColor) && (
-                      <div className={`w-[26px]  h-[26px] rounded-full flex items-center justify-center`} style={{ background: `${tagColor}` }}>
-                        <FontAwesomeIcon icon={faCheck} style={{ color: `#00000070` }} />
-                      </div>
-                    )
-                  }
-
-                  {
-                    !isValidHexColor(tagColor) && (
-                      <div class="border-dashed border bg-blue rounded-full w-[26px] h-[26px] border-mineshaft-500"></div>
-                    )
-                  }
-                </div>
-                <div className="w-10/12">
-                  <Input
-                    variant="plain"
-                    className="w-full focus:text-bunker-100 focus:ring-transparent bg-transparent"
-                    autoCapitalization={false}
-                    value={tagColor}
-                    onChange={(e: React.ChangeEvent<HTMLInputElement>) => setTagColor(e.target.value)}
-                  />
-                </div>
+                {
+                  !isValidHexColor(tagColor) && (
+                    <div className="border-dashed border bg-blue rounded-full w-[26px] h-[26px] border-mineshaft-500" />
+                  )
+                }
               </div>
+              <div className="w-10/12">
+                <Input
+                  variant="plain"
+                  className="w-full focus:text-bunker-100 focus:ring-transparent bg-transparent"
+                  autoCapitalization={false}
+                  value={tagColor}
+                  onChange={(e: React.ChangeEvent<HTMLInputElement>) => setTagColor(e.target.value)}
+                />
+              </div>
+            </div>
 
-              <div className="w-[26px] h-[26px]  flex items-center justify-center absolute top-[10px] right-[-4px] translate-x-[-50%]">
-                <div className="border-mineshaft-500  border h-[2.1rem] mr-4 absolute right-5"></div>
-                <div className={`flex items-center justify-center w-[26px] h-[26px] bg-transparent cursor-pointer hover:ring-offset-1 hover:ring-2 border-mineshaft-500 border bg-mineshaft-900 rounded-[3px]  p-2 ${showHexInput ? 'tags-conic-bg rounded-full' : ''}`} onClick={() => setShowHexInput((prev) => !prev)} style={{ border: '1px solid rgba(220, 216, 254, 0.376)' }}>
-                  {
-                    !showHexInput && <span>#</span>
-                  }
-                </div>
+            <div className="w-[26px] h-[26px]  flex items-center justify-center absolute top-[10px] right-[-4px] translate-x-[-50%]">
+              <div className="border-mineshaft-500  border h-[2.1rem] mr-4 absolute right-5" />
+              <div className={`flex items-center justify-center w-[26px] h-[26px] bg-transparent cursor-pointer hover:ring-offset-1 hover:ring-2 border-mineshaft-500 border bg-mineshaft-900 rounded-[3px]  p-2 ${showHexInput ? "tags-conic-bg rounded-full" : ""}`} onClick={() => setShowHexInput((prev) => !prev)} style={{ border: "1px solid rgba(220, 216, 254, 0.376)" }}
+                tabIndex={0} role="button"
+                onKeyDown={() => { }}>
+                {
+                  !showHexInput && <span>#</span>
+                }
               </div>
             </div>
           </div>
         </div>
+      </div>
 
-        <div className="mt-8 flex items-center">
-          <Button className="mr-4" type="submit" isDisabled={isSubmitting} isLoading={isSubmitting}>
-            Create
+      <div className="mt-8 flex items-center">
+        <Button className="mr-4" type="submit" isDisabled={isSubmitting} isLoading={isSubmitting}>
+          Create
+        </Button>
+        <ModalClose asChild>
+          <Button variant="plain" colorSchema="secondary">
+            Cancel
           </Button>
-          <ModalClose asChild>
-            <Button variant="plain" colorSchema="secondary">
-              Cancel
-            </Button>
-          </ModalClose>
-        </div>
-      </form>
-    </>
+        </ModalClose>
+      </div>
+    </form>
   );
 };
diff --git a/frontend/src/views/DashboardPage/components/DesignTagModal/DesignTagModal.tsx b/frontend/src/views/DashboardPage/components/DesignTagModal/DesignTagModal.tsx
deleted file mode 100644
index 6993471e9..000000000
--- a/frontend/src/views/DashboardPage/components/DesignTagModal/DesignTagModal.tsx
+++ /dev/null
@@ -1,138 +0,0 @@
-import { Controller, useForm } from "react-hook-form";
-import { yupResolver } from "@hookform/resolvers/yup";
-import * as yup from "yup";
-
-import { Button, FormControl, Input, ModalClose, Tooltip, IconButton, Tag } from "@app/components/v2";
-import { useToggle } from "@app/hooks";
-import { TagDesign } from "~/hooks/api/tags/types";
-
-import {
-  faEye,
-  faEyeSlash
-} from "@fortawesome/free-solid-svg-icons";
-import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
-import { useState } from 'react';
-import { WsTag } from '../../../../hooks/api/tags/types';
-
-type TagData = {
-  tagBackground: string;
-  tagLabel: string
-}
-
-type Props = {
-  onDesignTag: (tagData: TagData) => void;
-  selectedTag: WsTag
-};
-
-const designTagSchema = yup.object({
-  tagBackground: yup.string().required().trim().label("Tag Background"),
-  tagLabel: yup.string().required().trim().label("Tag Label"),
-});
-type FormData = yup.InferType<typeof designTagSchema>;
-
-
-export const DesignTagModal = ({ onDesignTag, selectedTag }: Props): JSX.Element => {
-  const [tagDesignObj, setTagDesignObj] = useState({
-    tagColor: {
-      bg: "",
-      text: ""
-    }
-  })
-
-  const {
-    control,
-    reset,
-    formState,
-    handleSubmit,
-    setValue
-  } = useForm<FormData>({
-    resolver: yupResolver(designTagSchema)
-  });
-
-  const onFormSubmit = ({ tagBackground, tagLabel }: FormData) => {
-    onDesignTag({ tagBackground, tagLabel });
-    reset();
-  };
-
-  const [previewTag, setPreviewTag] = useToggle(false);
-
-  const handleInputChange = (e: React.ChangeEvent<HTMLInputElement>, type: string) => {
-    setTagDesignObj((prev: { tagColor: { bg: string, text: string }; }) => ({
-      tagColor: {
-        ...prev.tagColor,
-        [type]: e.target.value
-      }
-    }))
-    if (type === 'bg') {
-      setValue('tagBackground', e.target.value)
-    } else {
-      setValue('tagLabel', e.target.value)
-    }
-  }
-
-  return (
-    <form onSubmit={handleSubmit(onFormSubmit)}>
-      <div className="relative">
-        <Controller
-          control={control}
-          name="tagBackground"
-          defaultValue=""
-          render={({ field, fieldState: { error } }) => {
-            return (
-              <>
-                <FormControl label="Tag Background" isError={Boolean(error)} errorText={error?.message}>
-                  <Input {...field} type="color" onChange={(e: React.ChangeEvent<HTMLInputElement>) => handleInputChange(e, 'bg')} />
-                </FormControl>
-              </>
-            )
-          }}
-        />
-        {/* <Tooltip content={previewTag ? "Hide Preview" : "Show Preview"}> */}
-        <div  >
-          <FontAwesomeIcon icon={previewTag ? faEye : faEyeSlash} onClick={() => setPreviewTag.toggle()} className="absolute top-[2px] left-[127px] cursor-pointer" />
-          {previewTag && (
-            <Tag
-              styles={{
-                backgroundColor: tagDesignObj.tagColor.bg,
-                color: tagDesignObj.tagColor.text
-              }}
-              isDisabled={true}
-              onClose={() => void (0)}
-              key={selectedTag._id}
-              className="absolute top-[-5px] right-[-5px] cursor-pointer"
-            >
-              {selectedTag.slug}
-            </Tag>
-          )}
-
-        </div>
-        {/* </Tooltip> */}
-      </div>
-
-      <Controller
-        control={control}
-        name="tagLabel"
-        defaultValue="#000000"
-        render={({ field, fieldState: { error } }) => {
-          return (
-            <>
-              <FormControl label="Tag Label" isError={Boolean(error)} errorText={error?.message}>
-                <Input {...field} type="color" onChange={(e: React.ChangeEvent<HTMLInputElement>) => handleInputChange(e, 'text')} value={tagDesignObj.tagColor.text} />
-              </FormControl>
-            </>
-          )
-        }}
-      />
-      <div className="mt-8 flex items-center">
-        <Button className="mr-4" type="submit" isDisabled={formState.isSubmitting} isLoading={formState.isSubmitting}>
-          Save
-        </Button>
-        <ModalClose asChild>
-          <Button variant="plain" colorSchema="secondary">
-            Cancel
-          </Button>
-        </ModalClose>
-      </div>
-    </form>
-  );
-};
diff --git a/frontend/src/views/DashboardPage/components/DesignTagModal/index.tsx b/frontend/src/views/DashboardPage/components/DesignTagModal/index.tsx
deleted file mode 100644
index 165e8e3a3..000000000
--- a/frontend/src/views/DashboardPage/components/DesignTagModal/index.tsx
+++ /dev/null
@@ -1 +0,0 @@
-export {DesignTagModal} from "./DesignTagModal"
\ No newline at end of file
diff --git a/frontend/src/views/DashboardPage/components/SecretInputRow/SecretInputRow.tsx b/frontend/src/views/DashboardPage/components/SecretInputRow/SecretInputRow.tsx
index 9b70b936e..cdb95864a 100644
--- a/frontend/src/views/DashboardPage/components/SecretInputRow/SecretInputRow.tsx
+++ b/frontend/src/views/DashboardPage/components/SecretInputRow/SecretInputRow.tsx
@@ -1,5 +1,5 @@
 /* eslint-disable react/jsx-no-useless-fragment */
-import { memo, useEffect, useRef, useState } from "react";
+import { memo, useEffect,useRef, useState } from "react";
 import {
   Control,
   Controller,
@@ -15,7 +15,6 @@ import {
   faCopy,
   faEllipsis,
   faInfoCircle,
-  faPlus,
   faTags,
   faXmark
 } from "@fortawesome/free-solid-svg-icons";
@@ -24,41 +23,21 @@ import { cx } from "cva";
 import { twMerge } from "tailwind-merge";
 
 import {
-  Button,
-  Checkbox,
-  FormControl,
   HoverCard,
   HoverCardContent,
   HoverCardTrigger,
   IconButton,
   Input,
   Popover,
-  PopoverContent,
   PopoverTrigger,
   SecretInput,
   Tag,
-  TextArea,
-  Tooltip,
-  Modal,
-  ModalContent,
-} from "@app/components/v2";
-
+  Tooltip} from "@app/components/v2";
+import { useToggle } from "@app/hooks";
 import { WsTag } from "@app/hooks/api/types";
 
+import AddTagPopoverContent from "../../../../components/AddTagPopoverContent/AddTagPopoverContent";
 import { FormData, SecretActionType } from "../../DashboardPage.utils";
-import { SecretTags } from "~/hooks/api/tags/types";
-import { useToggle } from "@app/hooks";
-
-const tagColors = [
-  { bg: "bg-[#f1c40f]/40", text: "text-[#fcf0c3]/70" },
-  { bg: "bg-[#cb1c8d]/40", text: "text-[#f2c6e3]/70" },
-  { bg: "bg-[#badc58]/40", text: "text-[#eef6d5]/70" },
-  { bg: "bg-[#ff5400]/40", text: "text-[#ffddcc]/70" },
-  { bg: "bg-[#3AB0FF]/40", text: "text-[#f0fffd]/70" },
-  { bg: "bg-[#6F1AB6]/40", text: "text-[#FFE5F1]/70" },
-  { bg: "bg-[#C40B13]/40", text: "text-[#FFDEDE]/70" },
-  { bg: "bg-[#332FD0]/40", text: "text-[#DFF6FF]/70" }
-];
 
 type Props = {
   index: number;
@@ -77,7 +56,6 @@ type Props = {
   // tag props
   wsTags?: WsTag[];
   onCreateTagOpen: () => void;
-  onDesignTagOpen: (selectedTag: WsTag, selectedFieldIndex: number) => void;
   // rhf specific functions, dont put this using useFormContext. This is passed as props to avoid re-rendering
   control: Control<FormData>;
   register: UseFormRegister<FormData>;
@@ -97,11 +75,10 @@ export const SecretInputRow = memo(
     isAddOnly,
     wsTags,
     onCreateTagOpen,
-    onDesignTagOpen,
     onSecretDelete,
     searchTerm,
     control,
-    register,
+    // register,
     setValue,
     isKeyError,
     keyError,
@@ -116,8 +93,6 @@ export const SecretInputRow = memo(
       append
     } = useFieldArray({ control, name: `secrets.${index}.tags` });
 
-    const tagColorByTagId = new Map((wsTags || []).map((wsTag, i) => [wsTag._id, tagColors[i % tagColors.length]]))
-
     // display the tags in alphabetical order
     secretTags.sort((a, b) => a?.name?.localeCompare(b?.name))
 
@@ -152,7 +127,19 @@ export const SecretInputRow = memo(
     const isOverridden =
       overrideAction === SecretActionType.Created || overrideAction === SecretActionType.Modified;
 
+
     const [editorRef, setEditorRef] = useState(isOverridden ? secValueOverride : secValue);
+    const [hoveredTag, setHoveredTag] = useState<WsTag | null>(null);
+
+    const handleTagOnMouseEnter = (wsTag: WsTag) => {
+      setHoveredTag(wsTag);
+    }
+
+    const handleTagOnMouseLeave = () => {
+      setHoveredTag(null);
+    }
+
+    const checkIfTagIsVisible = (wsTag: WsTag) =>  wsTag._id === hoveredTag?._id;
 
     const secId = useWatch({ control, name: `secrets.${index}._id`, exact: true });
     const tags = useWatch({ control, name: `secrets.${index}.tags`, exact: true, defaultValue: [] }) || [];
@@ -164,6 +151,7 @@ export const SecretInputRow = memo(
 
     const [isInviteLinkCopied, setInviteLinkCopied] = useToggle(false);
 
+
     useEffect(() => {
       let timer: NodeJS.Timeout;
       if (isInviteLinkCopied) {
@@ -172,6 +160,7 @@ export const SecretInputRow = memo(
       return () => clearTimeout(timer);
     }, [isInviteLinkCopied]);
 
+
     useEffect(() => {
       setEditorRef(isOverridden ? secValueOverride : secValue);
     }, [isOverridden]);
@@ -202,7 +191,8 @@ export const SecretInputRow = memo(
     const onSelectTag = (selectedTag: WsTag) => {
       const shouldAppend = !selectedTagIds[selectedTag.slug];
       if (shouldAppend) {
-        append(selectedTag);
+        const {_id: id, name, slug, tagColor} = selectedTag
+        append({_id: id, name, slug, tagColor});
       } else {
         const pos = tags.findIndex(({ slug }: { slug: string }) => selectedTag.slug === slug);
         remove(pos);
@@ -229,8 +219,6 @@ export const SecretInputRow = memo(
       return <></>;
     }
 
-
-
     return (
       <tr className="group flex flex-row hover:bg-mineshaft-700" key={index}>
         <td className="flex h-10 w-10 items-center justify-center border-none px-4">
@@ -335,67 +323,37 @@ export const SecretInputRow = memo(
         </td>
         <td className="min-w-sm flex">
           <div className="flex h-8 items-center pl-2">
-            {secretTags.map(({ id, _id, slug, tagColor }: SecretTags, i: number) => {
+            {secretTags.map(({ id, slug, tagColor}) => {
               return (
-                <Popover>
+               <>
+                 <Popover>
                   <PopoverTrigger asChild>
                     <div>
                       <Tag
-                        isDisabled={isReadOnly || isAddOnly || isRollbackMode}
-                        onClose={() => remove(i)}
+                        // isDisabled={isReadOnly || isAddOnly || isRollbackMode}
+                        // onClose={() => remove(i)}
                         key={id}
                         className="cursor-pointer"
                       >
-                        <div className="rounded-md  rounded-full border-mineshaft-500 bg-transparent flex items-center  gap-1.5 justify-around">
-                          <div className="w-[10px] h-[10px] rounded-full" style={{ background: tagColor ? tagColor : "#bec2c8" }}></div>
+                        <div className="rounded-full border-mineshaft-500 bg-transparent flex items-center  gap-1.5 justify-around">
+                          <div className="w-[10px] h-[10px] rounded-full" style={{ background: tagColor || "#bec2c8" }} />
                           {slug}
                         </div>
-
                       </Tag>
                     </div>
                   </PopoverTrigger>
-                  <PopoverContent
-                    side="left"
-                    className="max-h-96 w-auto min-w-[200px] p-2 overflow-y-auto overflow-x-hidden border border-mineshaft-600 bg-mineshaft-800 text-bunker-200"
-                    hideCloseBtn
-                  >
-                    <div className=" text-center text-sm font-medium text-bunker-200">
-                      Add tags to {secKey || "this secret"}
-                    </div>
-                    <div className="flex flex-col space-y-2.5">
-                      {wsTags?.map((wsTag) => (
-                        <Button
-                          variant="star"
-                          size="md"
-                          className={`mt-4 justify-start  px-1 hover:bg-mineshaft-600 hover:border-mineshaft-500 hover:text-bunker-200 ${selectedTagIds?.[wsTag.slug] && "text-primary hover:text-primary"}`}
-                          onClick={() => onSelectTag(wsTag)}
-                          leftIcon={
-                            <Checkbox
-                              className="mr-0 data-[state=checked]:bg-primary border-mineshaft-500 border"
-                              id="autoCapitalization"
-                              isChecked={selectedTagIds?.[wsTag.slug]}
-                            >
-                              { }
-                            </Checkbox>
-                          }
-                          key={wsTag._id}
-                        >
-                          {wsTag.slug}
-                        </Button>
-                      ))}
-                      <Button
-                        variant="star"
-                        size="md"
-                        className="mt-4 justify-start  px-1 hover:bg-mineshaft-600 hover:border-mineshaft-500 hover:text-bunker-200"
-                        onClick={onCreateTagOpen}
-                        leftIcon={<FontAwesomeIcon icon={faPlus} />}
-                      >
-                        Add new tag
-                      </Button>
-                    </div>
-                  </PopoverContent>
+                  <AddTagPopoverContent
+                    wsTags={wsTags}
+                    secKey={secKey || "this secret"}
+                    selectedTagIds={selectedTagIds}
+                    handleSelectTag={(wsTag: WsTag) => onSelectTag(wsTag)}
+                    handleTagOnMouseEnter={(wsTag: WsTag) => handleTagOnMouseEnter(wsTag)}
+                    handleTagOnMouseLeave={() => handleTagOnMouseLeave()}
+                    checkIfTagIsVisible={(wsTag: WsTag) => checkIfTagIsVisible(wsTag)}
+                    handleOnCreateTagOpen={() => onCreateTagOpen()}
+                  />
                 </Popover>
-
+               </>
               )
             })}
             <div className="w-0 overflow-hidden group-hover:w-6">
@@ -428,46 +386,16 @@ export const SecretInputRow = memo(
                       </Tooltip>
                     </div>
                   </PopoverTrigger>
-                  <PopoverContent
-                    side="left"
-                    className="max-h-96 w-auto min-w-[200px] p-2 overflow-y-auto overflow-x-hidden border border-mineshaft-600 bg-mineshaft-800 text-bunker-200"
-                    hideCloseBtn
-                  >
-                    <div className=" text-center text-sm font-medium text-bunker-200">
-                      Add tags to {secKey || "this secret"}
-                    </div>
-                    <div className="flex flex-col space-y-2.5">
-                      {wsTags?.map((wsTag) => (
-                        <Button
-                          variant="star"
-                          size="md"
-                          className={`mt-4 justify-start  px-1 hover:bg-mineshaft-600 hover:border-mineshaft-500 hover:text-bunker-200 ${selectedTagIds?.[wsTag.slug] && "text-primary hover:text-primary"}`}
-                          onClick={() => onSelectTag(wsTag)}
-                          leftIcon={
-                            <Checkbox
-                              className="mr-0 data-[state=checked]:bg-primary border-mineshaft-500"
-                              id="autoCapitalization"
-                              isChecked={selectedTagIds?.[wsTag.slug]}
-                            >
-                              { }
-                            </Checkbox>
-                          }
-                          key={wsTag._id}
-                        >
-                          {wsTag.slug}
-                        </Button>
-                      ))}
-                      <Button
-                        variant="star"
-                        size="md"
-                        className="mt-4 justify-start  px-1 hover:bg-mineshaft-600 hover:border-mineshaft-500 hover:text-bunker-200"
-                        onClick={onCreateTagOpen}
-                        leftIcon={<FontAwesomeIcon icon={faPlus} />}
-                      >
-                        Add new tag
-                      </Button>
-                    </div>
-                  </PopoverContent>
+                  <AddTagPopoverContent
+                    wsTags={wsTags}
+                    secKey={secKey || "this secret"}
+                    selectedTagIds={selectedTagIds}
+                    handleSelectTag={(wsTag: WsTag) => onSelectTag(wsTag)}
+                    handleTagOnMouseEnter={(wsTag: WsTag) => handleTagOnMouseEnter(wsTag)}
+                    handleTagOnMouseLeave={() => handleTagOnMouseLeave()}
+                    checkIfTagIsVisible={(wsTag: WsTag) => checkIfTagIsVisible(wsTag)}
+                    handleOnCreateTagOpen={() => onCreateTagOpen()}
+                  />
                 </Popover>
               </div>
             )}
@@ -511,20 +439,16 @@ export const SecretInputRow = memo(
                       <FontAwesomeIcon icon={faComment} />
                     </IconButton>
                   </PopoverTrigger>
-                  <PopoverContent
-                    className="w-auto border border-mineshaft-600 bg-mineshaft-800 p-2 drop-shadow-2xl"
-                    sticky="always"
-                  >
-                    <FormControl label="Comment" className="mb-0">
-                      <TextArea
-                        isDisabled={isReadOnly || isRollbackMode || shouldBeBlockedInAddOnly}
-                        className="border border-mineshaft-600 text-sm"
-                        {...register(`secrets.${index}.comment`)}
-                        rows={8}
-                        cols={30}
-                      />
-                    </FormControl>
-                  </PopoverContent>
+                  <AddTagPopoverContent
+                    wsTags={wsTags}
+                    secKey={secKey || "this secret"}
+                    selectedTagIds={selectedTagIds}
+                    handleSelectTag={(wsTag: WsTag) => onSelectTag(wsTag)}
+                    handleTagOnMouseEnter={(wsTag: WsTag) => handleTagOnMouseEnter(wsTag)}
+                    handleTagOnMouseLeave={() => handleTagOnMouseLeave()}
+                    checkIfTagIsVisible={(wsTag: WsTag) => checkIfTagIsVisible(wsTag)}
+                    handleOnCreateTagOpen={() => onCreateTagOpen()}
+                  />
                 </Popover>
               </div>
             </Tooltip>