diff --git a/web/src/components/features/dropdowns/SaveToCollectionsDropdown.tsx b/web/src/components/features/dropdowns/SaveToCollectionsDropdown.tsx
index af6dd6afe..455f99a34 100644
--- a/web/src/components/features/dropdowns/SaveToCollectionsDropdown.tsx
+++ b/web/src/components/features/dropdowns/SaveToCollectionsDropdown.tsx
@@ -21,22 +21,28 @@ export const SaveToCollectionsDropdown: React.FC<{
   const [openCollectionModal, setOpenCollectionModal] = React.useState(false);
   const [showDropdown, setShowDropdown] = React.useState(false);
 
-  const items: DropdownProps['items'] = useMemo(
-    () =>
-      (collectionsList || []).map<DropdownItem>((collection) => {
-        return {
-          value: collection.id,
-          label: collection.name,
-          selected: selectedCollections.some((id) => id === collection.id),
-          onClick: () => onClickItem(collection),
-          link: createBusterRoute({
-            route: BusterRoutes.APP_COLLECTIONS_ID,
-            collectionId: collection.id
-          })
-        };
-      }),
-    [collectionsList, selectedCollections]
-  );
+  const items: DropdownProps['items'] = useMemo(() => {
+    const collectionsItems = (collectionsList || []).map<DropdownItem>((collection) => {
+      return {
+        value: collection.id,
+        label: collection.name,
+        selected: selectedCollections.some((id) => id === collection.id),
+        onClick: () => onClickItem(collection),
+        link: createBusterRoute({
+          route: BusterRoutes.APP_COLLECTIONS_ID,
+          collectionId: collection.id
+        })
+      };
+    });
+
+    return [
+      ...collectionsItems,
+      {
+        value: 'new',
+        label: 'New collection'
+      }
+    ];
+  }, [collectionsList, selectedCollections]);
 
   const onClickItem = useMemoizedFn((collection: BusterCollectionListItem) => {
     const isSelected = selectedCollections.some((id) => id === collection.id);
@@ -63,6 +69,7 @@ export const SaveToCollectionsDropdown: React.FC<{
 
   const onOpenChange = useMemoizedFn((open: boolean) => {
     setShowDropdown(open);
+    console.log('open', open);
   });
 
   const onClick = useMemoizedFn(() => {
@@ -84,11 +91,12 @@ export const SaveToCollectionsDropdown: React.FC<{
         side="bottom"
         align="start"
         menuHeader={'Save to a collection'}
-        open={showDropdown}
         onOpenChange={onOpenChange}
         footerContent={memoizedButton}
         items={items}>
-        <AppTooltip title={showDropdown ? '' : 'Save to collection'}>{children} </AppTooltip>
+        <div>
+          <AppTooltip title={showDropdown ? '' : 'Save to collection'}>{children} </AppTooltip>
+        </div>
       </Dropdown>
 
       <NewCollectionModal
diff --git a/web/src/components/ui/dropdown/Dropdown.stories.tsx b/web/src/components/ui/dropdown/Dropdown.stories.tsx
index 7464c1802..e4ccf7cff 100644
--- a/web/src/components/ui/dropdown/Dropdown.stories.tsx
+++ b/web/src/components/ui/dropdown/Dropdown.stories.tsx
@@ -540,6 +540,13 @@ export const WithFooterContent: Story = {
   }
 };
 
+export const WithFooterAndHeader: Story = {
+  args: {
+    ...WithFooterContent.args,
+    menuHeader: 'Menu...'
+  }
+};
+
 // Example with numbered items
 export const WithNumberedItemsNoFilter: Story = {
   args: {
@@ -565,6 +572,7 @@ export const WithNumberedItemsNoFilter: Story = {
         label: 'Third Item',
         onClick: fn(),
         icon: <Storage />,
+        searchLabel: 'Third Item with secondary label',
         secondaryLabel: 'With secondary label'
       },
       {
diff --git a/web/src/components/ui/dropdown/Dropdown.tsx b/web/src/components/ui/dropdown/Dropdown.tsx
index 32b401df9..4b86202bb 100644
--- a/web/src/components/ui/dropdown/Dropdown.tsx
+++ b/web/src/components/ui/dropdown/Dropdown.tsx
@@ -164,9 +164,9 @@ export const DropdownBase = <T,>({
         className={cn('max-w-72 min-w-44', className)}
         align={align}
         side={side}
-        footerContent={footerContent}>
-        {menuHeader && (
-          <>
+        footerContent={footerContent}
+        headerContent={
+          menuHeader && (
             <DropdownMenuHeaderSelector
               menuHeader={menuHeader}
               onChange={handleSearchChange}
@@ -174,10 +174,8 @@ export const DropdownBase = <T,>({
               onSelectItem={onSelectItem}
               showIndex={showIndex}
             />
-            <DropdownMenuSeparator />
-          </>
-        )}
-
+          )
+        }>
         <div className="max-h-[375px] overflow-y-auto">
           {hasShownItem ? (
             <>
@@ -324,11 +322,12 @@ const DropdownItem = <T,>({
     const content = (
       <>
         {icon && !loading && <span className="text-icon-color">{icon}</span>}
-        {loading && <CircleSpinnerLoader size={9} />}
+
         <div className={cn('flex flex-col gap-y-1', truncate && 'overflow-hidden')}>
           <span className={cn(truncate && 'truncate')}>{label}</span>
           {secondaryLabel && <span className="text-gray-light text2xs">{secondaryLabel}</span>}
         </div>
+        {loading && <CircleSpinnerLoader size={9} />}
         {shortcut && <DropdownMenuShortcut>{shortcut}</DropdownMenuShortcut>}
         {link && (
           <DropdownMenuLink
@@ -511,6 +510,7 @@ const DropdownMenuHeaderSearch = <T,>({
       <Input
         autoFocus
         variant={'ghost'}
+        size={'small'}
         placeholder={placeholder}
         value={text}
         onChange={onChangePreflight}
diff --git a/web/src/components/ui/dropdown/DropdownBase.tsx b/web/src/components/ui/dropdown/DropdownBase.tsx
index b684df16e..8248c51b5 100644
--- a/web/src/components/ui/dropdown/DropdownBase.tsx
+++ b/web/src/components/ui/dropdown/DropdownBase.tsx
@@ -68,20 +68,24 @@ const DropdownMenuContent = React.forwardRef<
   React.ElementRef<typeof DropdownMenuPrimitive.Content>,
   React.ComponentPropsWithoutRef<typeof DropdownMenuPrimitive.Content> & {
     footerContent?: React.ReactNode;
+    headerContent?: React.ReactNode;
   }
->(({ className, children, sideOffset = 4, footerContent, ...props }, ref) => {
-  const NodeWrapper = footerContent ? 'div' : 'span';
-  const nodeWrapperProps = footerContent ? { className: 'p-2' } : { className: '' };
-
+>(({ className, children, sideOffset = 4, footerContent, headerContent, ...props }, ref) => {
   return (
     <DropdownMenuPrimitive.Portal>
       <DropdownMenuPrimitive.Content
         ref={ref}
         sideOffset={sideOffset}
-        className={cn(baseContentClass, 'shadow', footerContent && 'p-0', className)}
+        className={cn(baseContentClass, 'shadow', 'p-0', className)}
         {...props}>
-        <NodeWrapper {...nodeWrapperProps}>{children}</NodeWrapper>
-        {footerContent && <div className="border-t p-2">{footerContent}</div>}
+        {headerContent && (
+          <div className="flex flex-col">
+            <div className="p-1">{headerContent}</div>
+            <div className="bg-border h-[0.5px] w-full" />
+          </div>
+        )}
+        <div className="used-for-ref-purpose">{children}</div>
+        {footerContent && <div className="border-t p-1">{footerContent}</div>}
       </DropdownMenuPrimitive.Content>
     </DropdownMenuPrimitive.Portal>
   );
@@ -102,6 +106,7 @@ const DropdownMenuItem = React.forwardRef<
     className={cn(
       'relative flex cursor-pointer items-center gap-2 rounded-sm px-2 py-1.5 text-base outline-none select-none data-[disabled]:pointer-events-none data-[disabled]:opacity-50 [&_svg]:pointer-events-none [&_svg]:shrink-0',
       'focus:bg-item-hover focus:text-foreground',
+      'dropdown-item mx-1 [&.dropdown-item:first-child]:mt-1! [&.dropdown-item:has(+.dropdown-separator)]:mb-1 [&.dropdown-item:has(~.dropdown-separator)]:mt-1 [&.dropdown-item:last-child]:mb-1!',
       inset && 'pl-8',
       truncate && 'overflow-hidden',
       'group',
@@ -123,7 +128,8 @@ const itemClass = cn(
   'focus:bg-item-hover focus:text-foreground',
   'relative flex cursor-pointer items-center rounded-sm py-1.5 text-sm outline-none select-none',
   'data-[disabled]:pointer-events-none data-[disabled]:opacity-50',
-  'gap-1.5'
+  'gap-1.5',
+  'mx-1 dropdown-item [&.dropdown-item:has(+.dropdown-separator)]:mb-1 [&.dropdown-item:has(~.dropdown-separator)]:mt-1 [&.dropdown-item:first-child]:mt-1! [&.dropdown-item:last-child]:mb-1!'
 );
 
 const DropdownMenuCheckboxItemSingle = React.forwardRef<