diff --git a/web/src/components/features/buttons/FilterDashboardButton.stories.tsx b/web/src/components/features/buttons/FilterDashboardButton.stories.tsx
new file mode 100644
index 000000000..285676d4e
--- /dev/null
+++ b/web/src/components/features/buttons/FilterDashboardButton.stories.tsx
@@ -0,0 +1,18 @@
+import type { Meta, StoryObj } from '@storybook/react';
+import { FilterDashboardButton } from './FilterDashboardButton';
+
+const meta = {
+  title: 'Features/Buttons/FilterDashboardButton',
+  component: FilterDashboardButton,
+  parameters: {
+    layout: 'centered'
+  },
+  tags: ['autodocs']
+} satisfies Meta<typeof FilterDashboardButton>;
+
+export default meta;
+type Story = StoryObj<typeof meta>;
+
+export const Default: Story = {
+  args: {}
+};
diff --git a/web/src/components/features/buttons/FilterDashboardButton.tsx b/web/src/components/features/buttons/FilterDashboardButton.tsx
new file mode 100644
index 000000000..f0e88eb0c
--- /dev/null
+++ b/web/src/components/features/buttons/FilterDashboardButton.tsx
@@ -0,0 +1,80 @@
+import React, { useMemo, useState } from 'react';
+import { Button } from '@/components/ui/buttons';
+import { BarsFilter } from '@/components/ui/icons';
+import { Dropdown, DropdownItems } from '@/components/ui/dropdown';
+import { Input } from '@/components/ui/inputs';
+import { MagnifierSparkle } from '@/components/ui/icons';
+import { Text } from '@/components/ui/typography';
+import { faker } from '@faker-js/faker';
+import { cn } from '@/lib/classMerge';
+
+const filterItems = Array.from({ length: 100 }, (_, index) => {
+  const randomWord = faker.commerce.productAdjective() + ' ' + faker.commerce.productMaterial();
+  return {
+    label: randomWord,
+    value: randomWord + index
+  };
+});
+
+export const FilterDashboardButton: React.FC = React.memo(() => {
+  const [filterText, setFilterText] = useState('');
+
+  const allDropdownItems: DropdownItems = useMemo(() => {
+    return [
+      ...filterItems.filter((item) => item.label.toLowerCase().includes(filterText.toLowerCase()))
+    ];
+  }, [filterText]);
+
+  const menuHeader = useMemo(() => {
+    return (
+      <div className="flex flex-col">
+        <div className="flex items-center gap-x-2 p-1">
+          <Input
+            placeholder="Filters..."
+            autoFocus
+            variant={'ghost'}
+            value={filterText}
+            onKeyDown={(e) => {
+              //  e.preventDefault();
+              e.stopPropagation();
+            }}
+            onChange={(e) => {
+              e.preventDefault();
+              e.stopPropagation();
+              setFilterText(e.target.value);
+            }}
+          />
+        </div>
+        <div className="flex border-t p-1">
+          <div
+            className={cn(
+              'hover:bg-item-select flex w-full cursor-pointer items-center gap-x-1.5 rounded p-1',
+              filterText && 'bg-item-select'
+            )}>
+            <span className="text-icon-color">
+              <MagnifierSparkle />
+            </span>
+            <Text className="whitespace-nowrap" variant="default">
+              AI Filter
+            </Text>
+            {filterText && (
+              <Text truncate variant="tertiary">
+                "{filterText}"
+              </Text>
+            )}
+          </div>
+        </div>
+      </div>
+    );
+  }, [filterText]);
+
+  return (
+    <Dropdown items={allDropdownItems} menuHeader={menuHeader} menuHeaderClassName="p-0!">
+      <Button variant="ghost" prefix={<BarsFilter />}>
+        Filter
+      </Button>
+    </Dropdown>
+  );
+});
+
+FilterDashboardButton.displayName = 'FilterDashboardButton';
diff --git a/web/src/components/ui/dropdown/Dropdown.tsx b/web/src/components/ui/dropdown/Dropdown.tsx
index 050731b59..20ca81829 100644
--- a/web/src/components/ui/dropdown/Dropdown.tsx
+++ b/web/src/components/ui/dropdown/Dropdown.tsx
@@ -66,6 +66,7 @@ export interface DropdownProps<T = string> extends DropdownMenuProps {
   footerClassName?: string;
   sideOffset?: number;
   disabled?: boolean;
+  menuHeaderClassName?: string;
 }
 
 export interface DropdownContentProps<T = string>
@@ -94,6 +95,7 @@ export const DropdownBase = <T,>({
   footerContent,
   dir,
   modal,
+  menuHeaderClassName,
   sideOffset,
   footerClassName = '',
   showIndex = false,
@@ -125,6 +127,7 @@ export const DropdownBase = <T,>({
           footerContent={footerContent}
           className={contentClassName}
           footerClassName={footerClassName}
+          menuHeaderClassName={menuHeaderClassName}
         />
       </DropdownMenuContent>
     </DropdownMenu>
@@ -142,6 +145,7 @@ export const DropdownContent = <T,>({
   emptyStateText = 'No items found',
   footerContent,
   className,
+  menuHeaderClassName,
   footerClassName,
   onSelect
 }: DropdownContentProps<T>) => {
@@ -213,7 +217,7 @@ export const DropdownContent = <T,>({
     <>
       {menuHeader && (
         <div className="flex flex-col">
-          <div className="p-1">
+          <div className={cn('p-1', menuHeaderClassName)}>
             <DropdownMenuHeaderSelector
               menuHeader={menuHeader}
               onChange={handleSearchChange}