diff --git a/frontend/webapp/components/destinations/configured-destination-fields/index.tsx b/frontend/webapp/components/destinations/configured-destination-fields/index.tsx
index 5c8cd899e..a813a0427 100644
--- a/frontend/webapp/components/destinations/configured-destination-fields/index.tsx
+++ b/frontend/webapp/components/destinations/configured-destination-fields/index.tsx
@@ -30,9 +30,12 @@ const ItemValue = styled(Text)`
 export const ConfiguredDestinationFields: React.FC<
   ConfiguredDestinationFieldsProps
 > = ({ details }) => {
-  const parseValue = (value: string) => {
+  const parseValue = (value: any) => {
     try {
       const parsed = JSON.parse(value);
+      if (typeof parsed === 'string') {
+        return parsed;
+      }
 
       if (Array.isArray(parsed)) {
         return parsed
@@ -40,6 +43,7 @@ export const ConfiguredDestinationFields: React.FC<
             if (typeof item === 'object' && item !== null) {
               return `${item.key}: ${item.value}`;
             }
+
             return item;
           })
           .join(', ');
diff --git a/frontend/webapp/containers/main/destinations/add-destination/add-destination-modal/index.tsx b/frontend/webapp/containers/main/destinations/add-destination/add-destination-modal/index.tsx
index afadab7f3..27aa87bfb 100644
--- a/frontend/webapp/containers/main/destinations/add-destination/add-destination-modal/index.tsx
+++ b/frontend/webapp/containers/main/destinations/add-destination/add-destination-modal/index.tsx
@@ -13,9 +13,11 @@ function ModalActionComponent({
   onNext,
   onBack,
   item,
+  isFormValid,
 }: {
   onNext: () => void;
   onBack: () => void;
+  isFormValid?: boolean;
   item: DestinationTypeItem | undefined;
 }) {
   return (
@@ -33,6 +35,7 @@ function ModalActionComponent({
                 label: 'DONE',
                 onClick: onNext,
                 variant: 'primary',
+                disabled: !isFormValid,
               },
             ]
           : []
@@ -47,6 +50,7 @@ export function AddDestinationModal({
 }: AddDestinationModalProps) {
   const submitRef = useRef<() => void | null>(null);
   const [selectedItem, setSelectedItem] = useState<DestinationTypeItem>();
+  const [isFormValid, setIsFormValid] = useState(false);
 
   function handleNextStep(item: DestinationTypeItem) {
     setSelectedItem(item);
@@ -55,8 +59,9 @@ export function AddDestinationModal({
   function renderModalBody() {
     return selectedItem ? (
       <ConnectDestinationModalBody
-        destination={selectedItem}
         onSubmitRef={submitRef}
+        destination={selectedItem}
+        onFormValidChange={setIsFormValid}
       />
     ) : (
       <ChooseDestinationModalBody onSelect={handleNextStep} />
@@ -78,6 +83,7 @@ export function AddDestinationModal({
         <ModalActionComponent
           onNext={handleNext}
           onBack={() => setSelectedItem(undefined)}
+          isFormValid={isFormValid}
           item={selectedItem}
         />
       }
diff --git a/frontend/webapp/containers/main/destinations/add-destination/choose-destination-menu/index.tsx b/frontend/webapp/containers/main/destinations/add-destination/choose-destination-menu/index.tsx
index 5c7474c74..1e31c9dac 100644
--- a/frontend/webapp/containers/main/destinations/add-destination/choose-destination-menu/index.tsx
+++ b/frontend/webapp/containers/main/destinations/add-destination/choose-destination-menu/index.tsx
@@ -64,7 +64,7 @@ const DestinationFilterComponent: React.FC<FilterComponentProps> = ({
         </div>
         <Dropdown
           options={DROPDOWN_OPTIONS}
-          selectedOption={selectedTag}
+          value={selectedTag}
           onSelect={onTagSelect}
         />
       </InputAndDropdownContainer>
diff --git a/frontend/webapp/containers/main/destinations/add-destination/connect-destination-modal-body/index.tsx b/frontend/webapp/containers/main/destinations/add-destination/connect-destination-modal-body/index.tsx
index 3f59b33a1..f316b7e14 100644
--- a/frontend/webapp/containers/main/destinations/add-destination/connect-destination-modal-body/index.tsx
+++ b/frontend/webapp/containers/main/destinations/add-destination/connect-destination-modal-body/index.tsx
@@ -64,13 +64,14 @@ const NotificationNoteWrapper = styled.div`
 interface ConnectDestinationModalBodyProps {
   destination: DestinationTypeItem | undefined;
   onSubmitRef: React.MutableRefObject<(() => void) | null>;
+  onFormValidChange: (isValid: boolean) => void;
 }
 
 export function ConnectDestinationModalBody({
   destination,
   onSubmitRef,
+  onFormValidChange,
 }: ConnectDestinationModalBodyProps) {
-  const [formData, setFormData] = useState<Record<string, any>>({});
   const [destinationName, setDestinationName] = useState<string>('');
   const [showConnectionError, setShowConnectionError] = useState(false);
   const [dynamicFields, setDynamicFields] = useState<DynamicField[]>([]);
@@ -118,11 +119,12 @@ export function ConnectDestinationModalBody({
         if (destination.fields && field?.name in destination.fields) {
           return {
             ...field,
-            initialValue: destination.fields[field.name],
+            value: destination.fields[field.name],
           };
         }
         return field;
       });
+
       setDynamicFields(newDynamicFields);
     }
   }, [data, destination]);
@@ -130,45 +132,85 @@ export function ConnectDestinationModalBody({
   useEffect(() => {
     // Assign handleSubmit to the onSubmitRef so it can be triggered externally
     onSubmitRef.current = handleSubmit;
-  }, [formData, destinationName, exportedSignals]);
+  }, [dynamicFields, destinationName, exportedSignals]);
+
+  useEffect(() => {
+    const isFormValid = dynamicFields.every((field) =>
+      field.required ? field.value : true
+    );
+
+    onFormValidChange(isFormValid);
+  }, [dynamicFields]);
 
   function handleDynamicFieldChange(name: string, value: any) {
-    setFormData((prev) => ({ ...prev, [name]: value }));
+    setShowConnectionError(false);
+    setDynamicFields((prev) => {
+      return prev.map((field) => {
+        if (field.name === name) {
+          return { ...field, value };
+        }
+        return field;
+      });
+    });
   }
 
   function handleSignalChange(signal: string, value: boolean) {
     setExportedSignals((prev) => ({ ...prev, [signal]: value }));
   }
 
-  async function handleSubmit() {
-    const fields = Object.entries(formData).map(([name, value]) => ({
-      key: name,
-      value,
+  function processFormFields() {
+    function processFieldValue(field) {
+      return field.componentType === 'dropdown'
+        ? field.value.value
+        : field.value;
+    }
+
+    // Prepare fields for the request body
+    return dynamicFields.map((field) => ({
+      key: field.name,
+      value: processFieldValue(field),
     }));
+  }
 
+  async function handleSubmit() {
+    // Helper function to process field values
+    function processFieldValue(field) {
+      return field.componentType === 'dropdown'
+        ? field.value.value
+        : field.value;
+    }
+
+    // Prepare fields for the request body
+    const fields = processFormFields();
+
+    // Function to store configured destination
     function storeConfiguredDestination() {
       const destinationTypeDetails = dynamicFields.map((field) => ({
         title: field.title,
-        value: formData[field.name],
+        value: processFieldValue(field),
       }));
 
+      // Add 'Destination name' as the first item
       destinationTypeDetails.unshift({
         title: 'Destination name',
         value: destinationName,
       });
 
+      // Construct the configured destination object
       const storedDestination: ConfiguredDestination = {
         exportedSignals,
         destinationTypeDetails,
         type: destination?.type || '',
         imageUrl: destination?.imageUrl || '',
-        category: '',
+        category: '', // Could be handled in a more dynamic way if needed
         displayName: destination?.displayName || '',
       };
 
+      // Dispatch action to store the destination
       dispatch(addConfiguredDestination(storedDestination));
     }
 
+    // Prepare the request body
     const body: DestinationInput = {
       name: destinationName,
       type: destination?.type || '',
@@ -176,7 +218,13 @@ export function ConnectDestinationModalBody({
       fields,
     };
 
-    await connectEnv(body, storeConfiguredDestination);
+    try {
+      // Await connection and store the configured destination if successful
+      await connectEnv(body, storeConfiguredDestination);
+    } catch (error) {
+      console.error('Failed to submit destination configuration:', error);
+      // Handle error (e.g., show notification or alert)
+    }
   }
 
   if (!destination) return null;
@@ -194,15 +242,15 @@ export function ConnectDestinationModalBody({
           actionButton={
             destination.testConnectionSupported ? (
               <TestConnection // TODO: refactor this after add form validation
-                onError={() => setShowConnectionError(true)}
+                onError={() => {
+                  setShowConnectionError(true);
+                  onFormValidChange(false);
+                }}
                 destination={{
                   name: destinationName,
                   type: destination?.type || '',
                   exportedSignals,
-                  fields: Object.entries(formData).map(([name, value]) => ({
-                    key: name,
-                    value,
-                  })),
+                  fields: processFormFields(),
                 }}
               />
             ) : (
diff --git a/frontend/webapp/containers/main/destinations/add-destination/dynamic-form-fields/index.tsx b/frontend/webapp/containers/main/destinations/add-destination/dynamic-form-fields/index.tsx
index 813602dd8..b935a558c 100644
--- a/frontend/webapp/containers/main/destinations/add-destination/dynamic-form-fields/index.tsx
+++ b/frontend/webapp/containers/main/destinations/add-destination/dynamic-form-fields/index.tsx
@@ -32,7 +32,9 @@ export function DynamicConnectDestinationFormFields({
           <Dropdown
             key={field.name}
             {...field}
-            onSelect={(option) => onChange(field.name, option.value)}
+            onSelect={(option) =>
+              onChange(field.name, { id: option.id, value: option.value })
+            }
           />
         );
       case INPUT_TYPES.MULTI_INPUT:
diff --git a/frontend/webapp/hooks/destinations/useConnectDestinationForm.ts b/frontend/webapp/hooks/destinations/useConnectDestinationForm.ts
index 8165c1194..7f95908c5 100644
--- a/frontend/webapp/hooks/destinations/useConnectDestinationForm.ts
+++ b/frontend/webapp/hooks/destinations/useConnectDestinationForm.ts
@@ -37,7 +37,7 @@ export function useConnectDestinationForm() {
               title: displayName,
               onSelect: () => {},
               options,
-              selectedOption: options[0],
+              placeholder: 'Select an option',
               ...componentPropertiesJson,
             };
 
diff --git a/frontend/webapp/reuseable-components/dropdown/index.tsx b/frontend/webapp/reuseable-components/dropdown/index.tsx
index b43634117..1e7fafbb5 100644
--- a/frontend/webapp/reuseable-components/dropdown/index.tsx
+++ b/frontend/webapp/reuseable-components/dropdown/index.tsx
@@ -10,10 +10,11 @@ import { useOnClickOutside } from '@/hooks';
 
 interface DropdownProps {
   options: DropdownOption[];
-  selectedOption: DropdownOption | undefined;
+  value: DropdownOption | undefined;
   onSelect: (option: DropdownOption) => void;
   title?: string;
   tooltip?: string;
+  placeholder?: string;
 }
 
 const Container = styled.div`
@@ -105,10 +106,11 @@ const OpenDropdownIcon = styled(Image)<{ isOpen: boolean }>`
 
 const Dropdown: React.FC<DropdownProps> = ({
   options,
-  selectedOption,
+  value,
   onSelect,
   title,
   tooltip,
+  placeholder,
 }) => {
   const [isOpen, setIsOpen] = useState(false);
   const [searchTerm, setSearchTerm] = useState('');
@@ -143,7 +145,7 @@ const Dropdown: React.FC<DropdownProps> = ({
         </Tooltip>
       )}
       <DropdownHeader isOpen={isOpen} onClick={() => setIsOpen(!isOpen)}>
-        <Text size={14}>{selectedOption?.value}</Text>
+        <Text size={14}>{value?.value || placeholder}</Text>
 
         <OpenDropdownIcon
           src="/icons/common/extend-arrow.svg"
@@ -167,12 +169,12 @@ const Dropdown: React.FC<DropdownProps> = ({
           {filteredOptions.map((option) => (
             <DropdownItem
               key={option.id}
-              isSelected={option.id === selectedOption?.id}
+              isSelected={option.id === value?.id}
               onClick={() => handleSelect(option)}
             >
               <Text size={14}>{option.value}</Text>
 
-              {option.id === selectedOption?.id && (
+              {option.id === value?.id && (
                 <Image
                   src="/icons/common/check.svg"
                   alt=""
diff --git a/frontend/webapp/reuseable-components/input-list/index.tsx b/frontend/webapp/reuseable-components/input-list/index.tsx
index 0ea34d78a..43d6fffe5 100644
--- a/frontend/webapp/reuseable-components/input-list/index.tsx
+++ b/frontend/webapp/reuseable-components/input-list/index.tsx
@@ -10,6 +10,7 @@ interface InputListProps {
   initialValues?: string[];
   title?: string;
   tooltip?: string;
+  required?: boolean;
   onChange: (values: string[]) => void;
 }
 
@@ -55,19 +56,20 @@ const Title = styled(Text)`
   font-size: 14px;
   opacity: 0.8;
   line-height: 22px;
-  margin-bottom: 4px;
 `;
 
 const HeaderWrapper = styled.div`
   display: flex;
   align-items: center;
   gap: 6px;
+  margin-bottom: 4px;
 `;
 
 const InputList: React.FC<InputListProps> = ({
   initialValues = [''],
   title,
   tooltip,
+  required,
   onChange,
 }) => {
   const [inputs, setInputs] = useState<string[]>(initialValues);
@@ -102,6 +104,11 @@ const InputList: React.FC<InputListProps> = ({
         <Tooltip text={tooltip || ''}>
           <HeaderWrapper>
             <Title>{title}</Title>
+            {!required && (
+              <Text color="#7A7A7A" size={14} weight={300} opacity={0.8}>
+                (optional)
+              </Text>
+            )}
             {tooltip && (
               <Image
                 src="/icons/common/info.svg"
diff --git a/frontend/webapp/reuseable-components/key-value-input-list/index.tsx b/frontend/webapp/reuseable-components/key-value-input-list/index.tsx
index c6a51fdd7..1b25a0fbe 100644
--- a/frontend/webapp/reuseable-components/key-value-input-list/index.tsx
+++ b/frontend/webapp/reuseable-components/key-value-input-list/index.tsx
@@ -10,6 +10,7 @@ interface KeyValueInputsListProps {
   initialKeyValuePairs?: { key: string; value: string }[];
   title?: string;
   tooltip?: string;
+  required?: boolean;
   onChange?: (validKeyValuePairs: { key: string; value: string }[]) => void;
 }
 
@@ -23,6 +24,7 @@ const HeaderWrapper = styled.div`
   display: flex;
   align-items: center;
   gap: 6px;
+  margin-bottom: 4px;
 `;
 
 const Row = styled.div`
@@ -61,13 +63,13 @@ const Title = styled(Text)`
   font-size: 14px;
   opacity: 0.8;
   line-height: 22px;
-  margin-bottom: 4px;
 `;
 
 export const KeyValueInputsList: React.FC<KeyValueInputsListProps> = ({
   initialKeyValuePairs = [{ key: '', value: '' }],
   title,
   tooltip,
+  required,
   onChange,
 }) => {
   const [keyValuePairs, setKeyValuePairs] =
@@ -124,6 +126,11 @@ export const KeyValueInputsList: React.FC<KeyValueInputsListProps> = ({
         <Tooltip text={tooltip || ''}>
           <HeaderWrapper>
             <Title>{title}</Title>
+            {!required && (
+              <Text color="#7A7A7A" size={14} weight={300} opacity={0.8}>
+                (optional)
+              </Text>
+            )}
             {tooltip && (
               <Image
                 src="/icons/common/info.svg"