diff --git a/apps/app/components/command-palette/index.tsx b/apps/app/components/command-palette/command-pallette.tsx
similarity index 98%
rename from apps/app/components/command-palette/index.tsx
rename to apps/app/components/command-palette/command-pallette.tsx
index e6138da948f..678e17d46b5 100644
--- a/apps/app/components/command-palette/index.tsx
+++ b/apps/app/components/command-palette/command-pallette.tsx
@@ -1,4 +1,3 @@
-// TODO: Refactor this component: into a different file, use this file to export the components
 import React, { useState, useCallback, useEffect } from "react";
 
 import { useRouter } from "next/router";
@@ -14,7 +13,7 @@ import useTheme from "hooks/use-theme";
 import useToast from "hooks/use-toast";
 import useUser from "hooks/use-user";
 // components
-import ShortcutsModal from "components/command-palette/shortcuts";
+import { ShortcutsModal } from "components/command-palette";
 import { BulkDeleteIssuesModal } from "components/core";
 import { CreateProjectModal } from "components/project";
 import { CreateUpdateIssueModal } from "components/issues";
@@ -36,7 +35,7 @@ import { IIssue } from "types";
 // fetch-keys
 import { USER_ISSUE } from "constants/fetch-keys";
 
-const CommandPalette: React.FC = () => {
+export const CommandPalette: React.FC = () => {
   const [query, setQuery] = useState("");
 
   const [isPaletteOpen, setIsPaletteOpen] = useState(false);
@@ -369,5 +368,3 @@ const CommandPalette: React.FC = () => {
     </>
   );
 };
-
-export default CommandPalette;
diff --git a/apps/app/components/command-palette/index.ts b/apps/app/components/command-palette/index.ts
new file mode 100644
index 00000000000..542d6921475
--- /dev/null
+++ b/apps/app/components/command-palette/index.ts
@@ -0,0 +1,2 @@
+export * from "./command-pallette";
+export * from "./shortcuts-modal";
diff --git a/apps/app/components/command-palette/shortcuts.tsx b/apps/app/components/command-palette/shortcuts-modal.tsx
similarity index 98%
rename from apps/app/components/command-palette/shortcuts.tsx
rename to apps/app/components/command-palette/shortcuts-modal.tsx
index f5435055c90..c1800ab17aa 100644
--- a/apps/app/components/command-palette/shortcuts.tsx
+++ b/apps/app/components/command-palette/shortcuts-modal.tsx
@@ -41,7 +41,7 @@ const shortcuts = [
   },
 ];
 
-const ShortcutsModal: React.FC<Props> = ({ isOpen, setIsOpen }) => {
+export const ShortcutsModal: React.FC<Props> = ({ isOpen, setIsOpen }) => {
   const [query, setQuery] = useState("");
 
   const filteredShortcuts = shortcuts.filter((shortcut) =>
@@ -150,5 +150,3 @@ const ShortcutsModal: React.FC<Props> = ({ isOpen, setIsOpen }) => {
     </Transition.Root>
   );
 };
-
-export default ShortcutsModal;
diff --git a/apps/app/components/core/index.ts b/apps/app/components/core/index.ts
index 0865ea44136..482258b4a75 100644
--- a/apps/app/components/core/index.ts
+++ b/apps/app/components/core/index.ts
@@ -1,5 +1,6 @@
 export * from "./board-view";
 export * from "./list-view";
+export * from "./sidebar";
 export * from "./bulk-delete-issues-modal";
 export * from "./existing-issues-list-modal";
 export * from "./image-upload-modal";
diff --git a/apps/app/components/core/sidebar/index.ts b/apps/app/components/core/sidebar/index.ts
new file mode 100644
index 00000000000..20d186d1eed
--- /dev/null
+++ b/apps/app/components/core/sidebar/index.ts
@@ -0,0 +1,2 @@
+export * from "./sidebar-progress-stats";
+export * from "./single-progress-stats";
diff --git a/apps/app/components/core/sidebar/sidebar-progress-stats.tsx b/apps/app/components/core/sidebar/sidebar-progress-stats.tsx
index 2b150a890ef..9a3e5372307 100644
--- a/apps/app/components/core/sidebar/sidebar-progress-stats.tsx
+++ b/apps/app/components/core/sidebar/sidebar-progress-stats.tsx
@@ -11,7 +11,7 @@ import { Tab } from "@headlessui/react";
 import issuesServices from "services/issues.service";
 import projectService from "services/project.service";
 // components
-import SingleProgressStats from "components/core/sidebar/single-progress-stats";
+import { SingleProgressStats } from "components/core";
 // ui
 import { Avatar } from "components/ui";
 // icons
@@ -36,7 +36,7 @@ const stateGroupColours: {
   completed: "#096e8d",
 };
 
-const SidebarProgressStats: React.FC<Props> = ({ groupedIssues, issues }) => {
+export const SidebarProgressStats: React.FC<Props> = ({ groupedIssues, issues }) => {
   const router = useRouter();
   const { workspaceSlug, projectId } = router.query;
   const { data: issueLabels } = useSWR<IIssueLabels[]>(
@@ -180,5 +180,3 @@ const SidebarProgressStats: React.FC<Props> = ({ groupedIssues, issues }) => {
     </div>
   );
 };
-
-export default SidebarProgressStats;
diff --git a/apps/app/components/core/sidebar/single-progress-stats.tsx b/apps/app/components/core/sidebar/single-progress-stats.tsx
index 885aed23ed2..4b3de9c9fab 100644
--- a/apps/app/components/core/sidebar/single-progress-stats.tsx
+++ b/apps/app/components/core/sidebar/single-progress-stats.tsx
@@ -8,22 +8,22 @@ type TSingleProgressStatsProps = {
   total: number;
 };
 
-const SingleProgressStats: React.FC<TSingleProgressStatsProps> = ({ title, completed, total }) => (
-  <>
-    <div className="flex items-center justify-between w-full py-3 text-xs border-b-[1px] border-gray-200">
-      <div className="flex items-center justify-start w-1/2 gap-2">{title}</div>
-      <div className="flex items-center justify-end w-1/2 gap-1 px-2">
-        <div className="flex h-5 justify-center items-center gap-1 ">
-          <span className="h-4 w-4 ">
-            <CircularProgressbar value={completed} maxValue={total} strokeWidth={10} />
-          </span>
-          <span className="w-8 text-right">{Math.floor((completed / total) * 100)}%</span>
-        </div>
-        <span>of</span>
-        <span>{total}</span>
+export const SingleProgressStats: React.FC<TSingleProgressStatsProps> = ({
+  title,
+  completed,
+  total,
+}) => (
+  <div className="flex items-center justify-between w-full py-3 text-xs border-b-[1px] border-gray-200">
+    <div className="flex items-center justify-start w-1/2 gap-2">{title}</div>
+    <div className="flex items-center justify-end w-1/2 gap-1 px-2">
+      <div className="flex h-5 justify-center items-center gap-1 ">
+        <span className="h-4 w-4 ">
+          <CircularProgressbar value={completed} maxValue={total} strokeWidth={10} />
+        </span>
+        <span className="w-8 text-right">{Math.floor((completed / total) * 100)}%</span>
       </div>
+      <span>of</span>
+      <span>{total}</span>
     </div>
-  </>
+  </div>
 );
-
-export default SingleProgressStats;
diff --git a/apps/app/components/cycles/modal.tsx b/apps/app/components/cycles/modal.tsx
index 76e1c5ad1a5..878a629ca39 100644
--- a/apps/app/components/cycles/modal.tsx
+++ b/apps/app/components/cycles/modal.tsx
@@ -1,12 +1,15 @@
 import { Fragment } from "react";
+
 import { mutate } from "swr";
+
+// headless ui
 import { Dialog, Transition } from "@headlessui/react";
 // services
 import cycleService from "services/cycles.service";
+// hooks
+import useToast from "hooks/use-toast";
 // components
 import { CycleForm } from "components/cycles";
-// helpers
-import { renderDateFormat } from "helpers/date-time.helper";
 // types
 import type { ICycle } from "types";
 // fetch keys
@@ -20,8 +23,14 @@ export interface CycleModalProps {
   initialData?: ICycle;
 }
 
-export const CycleModal: React.FC<CycleModalProps> = (props) => {
-  const { isOpen, handleClose, initialData, projectId, workspaceSlug } = props;
+export const CycleModal: React.FC<CycleModalProps> = ({
+  isOpen,
+  handleClose,
+  initialData,
+  projectId,
+  workspaceSlug,
+}) => {
+  const { setToastAlert } = useToast();
 
   const createCycle = (payload: Partial<ICycle>) => {
     cycleService
@@ -31,12 +40,11 @@ export const CycleModal: React.FC<CycleModalProps> = (props) => {
         handleClose();
       })
       .catch((err) => {
-        // TODO: Handle this ERROR.
-        // Object.keys(err).map((key) => {
-        //   setError(key as keyof typeof defaultValues, {
-        //     message: err[key].join(", "),
-        //   });
-        // });
+        setToastAlert({
+          type: "error",
+          title: "Error",
+          message: "Error in creating cycle. Please try again!",
+        });
       });
   };
 
@@ -48,12 +56,11 @@ export const CycleModal: React.FC<CycleModalProps> = (props) => {
         handleClose();
       })
       .catch((err) => {
-        // TODO: Handle this ERROR.
-        //   Object.keys(err).map((key) => {
-        //     setError(key as keyof typeof defaultValues, {
-        //       message: err[key].join(", "),
-        //     });
-        //   });
+        setToastAlert({
+          type: "error",
+          title: "Error",
+          message: "Error in updating cycle. Please try again!",
+        });
       });
   };
 
diff --git a/apps/app/components/issues/select/label.tsx b/apps/app/components/issues/select/label.tsx
index b1b1c43382d..2d4e5a179c3 100644
--- a/apps/app/components/issues/select/label.tsx
+++ b/apps/app/components/issues/select/label.tsx
@@ -9,7 +9,7 @@ import { useForm } from "react-hook-form";
 // headless ui
 import { Combobox, Transition } from "@headlessui/react";
 // icons
-import { TagIcon } from "@heroicons/react/24/outline";
+import { RectangleGroupIcon, TagIcon } from "@heroicons/react/24/outline";
 // services
 import issuesServices from "services/issues.service";
 // types
@@ -58,8 +58,6 @@ export const IssueLabelSelect: React.FC<Props> = ({ value, onChange, projectId }
   };
 
   const {
-    register,
-    handleSubmit,
     formState: { isSubmitting },
     setFocus,
     reset,
@@ -69,16 +67,10 @@ export const IssueLabelSelect: React.FC<Props> = ({ value, onChange, projectId }
     isOpen && setFocus("name");
   }, [isOpen, setFocus]);
 
-  const options = issueLabels?.map((label) => ({
-    value: label.id,
-    display: label.name,
-    color: label.color,
-  }));
-
   const filteredOptions =
     query === ""
-      ? options
-      : options?.filter((option) => option.display.toLowerCase().includes(query.toLowerCase()));
+      ? issueLabels
+      : issueLabels?.filter((l) => l.name.toLowerCase().includes(query.toLowerCase()));
 
   return (
     <>
@@ -98,10 +90,9 @@ export const IssueLabelSelect: React.FC<Props> = ({ value, onChange, projectId }
               <TagIcon className="h-3 w-3 text-gray-500" />
               <span className={`flex items-center gap-2 ${!value ? "" : "text-gray-900"}`}>
                 {Array.isArray(value)
-                  ? value
-                      .map((v) => options?.find((option) => option.value === v)?.display)
-                      .join(", ") || "Labels"
-                  : options?.find((option) => option.value === value)?.display || "Labels"}
+                  ? value.map((v) => issueLabels?.find((l) => l.id === v)?.name).join(", ") ||
+                    "Labels"
+                  : issueLabels?.find((l) => l.id === value)?.name || "Labels"}
               </span>
             </Combobox.Button>
 
@@ -122,31 +113,62 @@ export const IssueLabelSelect: React.FC<Props> = ({ value, onChange, projectId }
                   displayValue={(assigned: any) => assigned?.name}
                 />
                 <div className="py-1">
-                  {filteredOptions ? (
+                  {issueLabels && filteredOptions ? (
                     filteredOptions.length > 0 ? (
-                      filteredOptions.map((option) => (
-                        <Combobox.Option
-                          key={option.value}
-                          className={({ active, selected }) =>
-                            `${active ? "bg-indigo-50" : ""} ${
-                              selected ? "bg-indigo-50 font-medium" : ""
-                            } flex cursor-pointer select-none items-center gap-2 truncate p-2 text-gray-900`
-                          }
-                          value={option.value}
-                        >
-                          {issueLabels && (
-                            <>
-                              <span
-                                className="h-1.5 w-1.5 flex-shrink-0 rounded-full"
-                                style={{
-                                  backgroundColor: option.color,
-                                }}
-                              />
-                              {option.display}
-                            </>
-                          )}
-                        </Combobox.Option>
-                      ))
+                      filteredOptions.map((label) => {
+                        const children = issueLabels?.filter((l) => l.parent === label.id);
+
+                        if (children.length === 0) {
+                          if (!label.parent)
+                            return (
+                              <Combobox.Option
+                                key={label.id}
+                                className={({ active, selected }) =>
+                                  `${active ? "bg-indigo-50" : ""} ${
+                                    selected ? "bg-indigo-50 font-medium" : ""
+                                  } flex cursor-pointer select-none items-center gap-2 truncate p-2 text-gray-900`
+                                }
+                                value={label.id}
+                              >
+                                <span
+                                  className="h-1.5 w-1.5 flex-shrink-0 rounded-full"
+                                  style={{
+                                    backgroundColor: label?.color ?? "green",
+                                  }}
+                                />
+                                {label.name}
+                              </Combobox.Option>
+                            );
+                        } else
+                          return (
+                            <div className="bg-gray-50 border-y border-gray-400">
+                              <div className="flex select-none font-medium items-center gap-2 truncate p-2 text-gray-900">
+                                <RectangleGroupIcon className="h-3 w-3" /> {label.name}
+                              </div>
+                              <div>
+                                {children.map((child) => (
+                                  <Combobox.Option
+                                    key={child.id}
+                                    className={({ active, selected }) =>
+                                      `${active ? "bg-indigo-50" : ""} ${
+                                        selected ? "bg-indigo-50 font-medium" : ""
+                                      } flex cursor-pointer select-none items-center gap-2 truncate p-2 text-gray-900`
+                                    }
+                                    value={child.id}
+                                  >
+                                    <span
+                                      className="h-2 w-2 flex-shrink-0 rounded-full"
+                                      style={{
+                                        backgroundColor: child?.color ?? "green",
+                                      }}
+                                    />
+                                    {child.name}
+                                  </Combobox.Option>
+                                ))}
+                              </div>
+                            </div>
+                          );
+                      })
                     ) : (
                       <p className="text-xs text-gray-500 px-2">No labels found</p>
                     )
diff --git a/apps/app/components/issues/sidebar.tsx b/apps/app/components/issues/sidebar.tsx
index 62a99eac142..c321f0a31c4 100644
--- a/apps/app/components/issues/sidebar.tsx
+++ b/apps/app/components/issues/sidebar.tsx
@@ -38,6 +38,7 @@ import {
   TrashIcon,
   PlusIcon,
   XMarkIcon,
+  RectangleGroupIcon,
 } from "@heroicons/react/24/outline";
 // helpers
 import { copyTextToClipboard } from "helpers/string.helper";
@@ -298,30 +299,31 @@ export const IssueDetailsSidebar: React.FC<Props> = ({
             </div>
             <div className="basis-1/2">
               <div className="flex flex-wrap gap-1">
-                {watchIssue("labels_list")?.map((label) => {
-                  const singleLabel = issueLabels?.find((l) => l.id === label);
+                {watchIssue("labels_list")?.map((labelId) => {
+                  const label = issueLabels?.find((l) => l.id === labelId);
 
-                  if (!singleLabel) return null;
-
-                  return (
-                    <span
-                      key={singleLabel.id}
-                      className="group flex cursor-pointer items-center gap-1 rounded-2xl border px-1 py-0.5 text-xs hover:border-red-500 hover:bg-red-50"
-                      onClick={() => {
-                        const updatedLabels = watchIssue("labels_list")?.filter((l) => l !== label);
-                        submitChanges({
-                          labels_list: updatedLabels,
-                        });
-                      }}
-                    >
+                  if (label)
+                    return (
                       <span
-                        className="h-2 w-2 flex-shrink-0 rounded-full"
-                        style={{ backgroundColor: singleLabel?.color ?? "green" }}
-                      />
-                      {singleLabel.name}
-                      <XMarkIcon className="h-2 w-2 group-hover:text-red-500" />
-                    </span>
-                  );
+                        key={label.id}
+                        className="group flex cursor-pointer items-center gap-1 rounded-2xl border px-1 py-0.5 text-xs hover:border-red-500 hover:bg-red-50"
+                        onClick={() => {
+                          const updatedLabels = watchIssue("labels_list")?.filter(
+                            (l) => l !== labelId
+                          );
+                          submitChanges({
+                            labels_list: updatedLabels,
+                          });
+                        }}
+                      >
+                        <span
+                          className="h-2 w-2 flex-shrink-0 rounded-full"
+                          style={{ backgroundColor: label?.color ?? "green" }}
+                        />
+                        {label.name}
+                        <XMarkIcon className="h-2 w-2 group-hover:text-red-500" />
+                      </span>
+                    );
                 })}
                 <Controller
                   control={control}
@@ -336,58 +338,95 @@ export const IssueDetailsSidebar: React.FC<Props> = ({
                       disabled={isNotAllowed}
                     >
                       {({ open }) => (
-                        <>
-                          <Listbox.Label className="sr-only">Label</Listbox.Label>
-                          <div className="relative">
-                            <Listbox.Button
-                              className={`flex ${
-                                isNotAllowed
-                                  ? "cursor-not-allowed"
-                                  : "cursor-pointer hover:bg-gray-100"
-                              } items-center gap-2 rounded-2xl border px-2 py-0.5 text-xs`}
-                            >
-                              Select Label
-                            </Listbox.Button>
+                        <div className="relative">
+                          <Listbox.Button
+                            className={`flex ${
+                              isNotAllowed
+                                ? "cursor-not-allowed"
+                                : "cursor-pointer hover:bg-gray-100"
+                            } items-center gap-2 rounded-2xl border px-2 py-0.5 text-xs`}
+                          >
+                            Select Label
+                          </Listbox.Button>
+
+                          <Transition
+                            show={open}
+                            as={React.Fragment}
+                            leave="transition ease-in duration-100"
+                            leaveFrom="opacity-100"
+                            leaveTo="opacity-0"
+                          >
+                            <Listbox.Options className="absolute right-0 z-10 mt-1 max-h-28 w-40 overflow-auto rounded-md bg-white py-1 text-xs shadow-lg ring-1 ring-black ring-opacity-5 focus:outline-none">
+                              <div className="py-1">
+                                {issueLabels ? (
+                                  issueLabels.length > 0 ? (
+                                    issueLabels.map((label: IIssueLabels) => {
+                                      const children = issueLabels?.filter(
+                                        (l) => l.parent === label.id
+                                      );
 
-                            <Transition
-                              show={open}
-                              as={React.Fragment}
-                              leave="transition ease-in duration-100"
-                              leaveFrom="opacity-100"
-                              leaveTo="opacity-0"
-                            >
-                              <Listbox.Options className="absolute right-0 z-10 mt-1 max-h-28 w-40 overflow-auto rounded-md bg-white py-1 text-xs shadow-lg ring-1 ring-black ring-opacity-5 focus:outline-none">
-                                <div className="py-1">
-                                  {issueLabels ? (
-                                    issueLabels.length > 0 ? (
-                                      issueLabels.map((label: IIssueLabels) => (
-                                        <Listbox.Option
-                                          key={label.id}
-                                          className={({ active, selected }) =>
-                                            `${
-                                              active || selected ? "bg-indigo-50" : ""
-                                            } relative flex cursor-pointer select-none items-center gap-2 truncate p-2 text-gray-900`
-                                          }
-                                          value={label.id}
-                                        >
-                                          <span
-                                            className="h-2 w-2 flex-shrink-0 rounded-full"
-                                            style={{ backgroundColor: label.color ?? "green" }}
-                                          />
-                                          {label.name}
-                                        </Listbox.Option>
-                                      ))
-                                    ) : (
-                                      <div className="text-center">No labels found</div>
-                                    )
+                                      if (children.length === 0) {
+                                        if (!label.parent)
+                                          return (
+                                            <Listbox.Option
+                                              key={label.id}
+                                              className={({ active, selected }) =>
+                                                `${active || selected ? "bg-indigo-50" : ""} ${
+                                                  selected ? "font-medium" : ""
+                                                } flex cursor-pointer select-none items-center gap-2 truncate p-2 text-gray-900`
+                                              }
+                                              value={label.id}
+                                            >
+                                              <span
+                                                className="h-2 w-2 flex-shrink-0 rounded-full"
+                                                style={{
+                                                  backgroundColor: label?.color ?? "green",
+                                                }}
+                                              />
+                                              {label.name}
+                                            </Listbox.Option>
+                                          );
+                                      } else
+                                        return (
+                                          <div className="bg-gray-50 border-y border-gray-400">
+                                            <div className="flex select-none font-medium items-center gap-2 truncate p-2 text-gray-900">
+                                              <RectangleGroupIcon className="h-3 w-3" />{" "}
+                                              {label.name}
+                                            </div>
+                                            <div>
+                                              {children.map((child) => (
+                                                <Listbox.Option
+                                                  key={child.id}
+                                                  className={({ active, selected }) =>
+                                                    `${active || selected ? "bg-indigo-50" : ""} ${
+                                                      selected ? "font-medium" : ""
+                                                    } flex cursor-pointer select-none items-center gap-2 truncate p-2 text-gray-900`
+                                                  }
+                                                  value={child.id}
+                                                >
+                                                  <span
+                                                    className="h-2 w-2 flex-shrink-0 rounded-full"
+                                                    style={{
+                                                      backgroundColor: child?.color ?? "green",
+                                                    }}
+                                                  />
+                                                  {child.name}
+                                                </Listbox.Option>
+                                              ))}
+                                            </div>
+                                          </div>
+                                        );
+                                    })
                                   ) : (
-                                    <Spinner />
-                                  )}
-                                </div>
-                              </Listbox.Options>
-                            </Transition>
-                          </div>
-                        </>
+                                    <div className="text-center">No labels found</div>
+                                  )
+                                ) : (
+                                  <Spinner />
+                                )}
+                              </div>
+                            </Listbox.Options>
+                          </Transition>
+                        </div>
                       )}
                     </Listbox>
                   )}
diff --git a/apps/app/components/issues/view-select/priority.tsx b/apps/app/components/issues/view-select/priority.tsx
index 5517494b2cc..9f55937a2bd 100644
--- a/apps/app/components/issues/view-select/priority.tsx
+++ b/apps/app/components/issues/view-select/priority.tsx
@@ -69,10 +69,10 @@ export const ViewPrioritySelect: React.FC<Props> = ({
             {PRIORITIES?.map((priority) => (
               <Listbox.Option
                 key={priority}
-                className={({ active }) =>
-                  `flex cursor-pointer select-none items-center gap-x-2 px-3 py-2 capitalize ${
-                    active ? "bg-indigo-50" : "bg-white"
-                  }`
+                className={({ active, selected }) =>
+                  `${active || selected ? "bg-indigo-50" : ""} ${
+                    selected ? "font-medium" : ""
+                  } flex cursor-pointer select-none items-center gap-x-2 px-3 py-2 capitalize`
                 }
                 value={priority}
               >
diff --git a/apps/app/components/labels/create-update-label-inline.tsx b/apps/app/components/labels/create-update-label-inline.tsx
new file mode 100644
index 00000000000..3b7fe614c2c
--- /dev/null
+++ b/apps/app/components/labels/create-update-label-inline.tsx
@@ -0,0 +1,189 @@
+import React, { useEffect } from "react";
+
+import { useRouter } from "next/router";
+
+import { mutate } from "swr";
+
+// react-hook-form
+import { Controller, SubmitHandler, useForm } from "react-hook-form";
+// react-color
+import { TwitterPicker } from "react-color";
+// headless ui
+import { Popover, Transition } from "@headlessui/react";
+// services
+import issuesService from "services/issues.service";
+// ui
+import { Button, Input } from "components/ui";
+// types
+import { IIssueLabels } from "types";
+// fetch-keys
+import { PROJECT_ISSUE_LABELS } from "constants/fetch-keys";
+
+type Props = {
+  labelForm: boolean;
+  setLabelForm: React.Dispatch<React.SetStateAction<boolean>>;
+  isUpdating: boolean;
+  labelToUpdate: IIssueLabels | null;
+};
+
+const defaultValues: Partial<IIssueLabels> = {
+  name: "",
+  color: "#ff0000",
+};
+
+export const CreateUpdateLabelInline: React.FC<Props> = ({
+  labelForm,
+  setLabelForm,
+  isUpdating,
+  labelToUpdate,
+}) => {
+  const router = useRouter();
+  const { workspaceSlug, projectId } = router.query;
+
+  const {
+    handleSubmit,
+    control,
+    register,
+    reset,
+    formState: { errors, isSubmitting },
+    watch,
+    setValue,
+  } = useForm<IIssueLabels>({
+    defaultValues,
+  });
+
+  const handleLabelCreate: SubmitHandler<IIssueLabels> = async (formData) => {
+    if (!workspaceSlug || !projectId || isSubmitting) return;
+
+    await issuesService
+      .createIssueLabel(workspaceSlug as string, projectId as string, formData)
+      .then((res) => {
+        mutate<IIssueLabels[]>(
+          PROJECT_ISSUE_LABELS(projectId as string),
+          (prevData) => [res, ...(prevData ?? [])],
+          false
+        );
+        reset(defaultValues);
+        setLabelForm(false);
+      });
+  };
+
+  const handleLabelUpdate: SubmitHandler<IIssueLabels> = async (formData) => {
+    if (!workspaceSlug || !projectId || isSubmitting) return;
+
+    await issuesService
+      .patchIssueLabel(
+        workspaceSlug as string,
+        projectId as string,
+        labelToUpdate?.id ?? "",
+        formData
+      )
+      .then((res) => {
+        console.log(res);
+        reset(defaultValues);
+        mutate<IIssueLabels[]>(
+          PROJECT_ISSUE_LABELS(projectId as string),
+          (prevData) =>
+            prevData?.map((p) => (p.id === labelToUpdate?.id ? { ...p, ...formData } : p)),
+          false
+        );
+        setLabelForm(false);
+      });
+  };
+
+  useEffect(() => {
+    if (!labelForm && isUpdating) return;
+
+    reset();
+  }, [labelForm, isUpdating, reset]);
+
+  useEffect(() => {
+    if (!labelToUpdate) return;
+
+    setValue("color", labelToUpdate.color);
+    setValue("name", labelToUpdate.name);
+  }, [labelToUpdate, setValue]);
+
+  return (
+    <div
+      className={`flex items-center gap-2 rounded-md border p-3 md:w-2/3 ${
+        labelForm ? "" : "hidden"
+      }`}
+    >
+      <div className="h-8 w-8 flex-shrink-0">
+        <Popover className="relative z-10 flex h-full w-full items-center justify-center rounded-xl bg-gray-200">
+          {({ open }) => (
+            <>
+              <Popover.Button
+                className={`group inline-flex items-center text-base font-medium focus:outline-none focus:ring-2 focus:ring-indigo-500 focus:ring-offset-2 ${
+                  open ? "text-gray-900" : "text-gray-500"
+                }`}
+              >
+                {watch("color") && watch("color") !== "" && (
+                  <span
+                    className="h-4 w-4 rounded"
+                    style={{
+                      backgroundColor: watch("color") ?? "green",
+                    }}
+                  />
+                )}
+              </Popover.Button>
+
+              <Transition
+                as={React.Fragment}
+                enter="transition ease-out duration-200"
+                enterFrom="opacity-0 translate-y-1"
+                enterTo="opacity-100 translate-y-0"
+                leave="transition ease-in duration-150"
+                leaveFrom="opacity-100 translate-y-0"
+                leaveTo="opacity-0 translate-y-1"
+              >
+                <Popover.Panel className="absolute top-full left-0 z-20 mt-3 w-screen max-w-xs px-2 sm:px-0">
+                  <Controller
+                    name="color"
+                    control={control}
+                    render={({ field: { value, onChange } }) => (
+                      <TwitterPicker color={value} onChange={(value) => onChange(value.hex)} />
+                    )}
+                  />
+                </Popover.Panel>
+              </Transition>
+            </>
+          )}
+        </Popover>
+      </div>
+      <div className="flex w-full flex-col justify-center">
+        <Input
+          type="text"
+          id="labelName"
+          name="name"
+          register={register}
+          placeholder="Label title"
+          validations={{
+            required: "Label title is required",
+          }}
+          error={errors.name}
+        />
+      </div>
+      <Button
+        type="button"
+        theme="secondary"
+        onClick={() => {
+          reset();
+          setLabelForm(false);
+        }}
+      >
+        Cancel
+      </Button>
+      {isUpdating ? (
+        <Button type="button" onClick={handleSubmit(handleLabelUpdate)} disabled={isSubmitting}>
+          {isSubmitting ? "Updating" : "Update"}
+        </Button>
+      ) : (
+        <Button type="button" onClick={handleSubmit(handleLabelCreate)} disabled={isSubmitting}>
+          {isSubmitting ? "Adding" : "Add"}
+        </Button>
+      )}
+    </div>
+  );
+};
diff --git a/apps/app/components/labels/index.ts b/apps/app/components/labels/index.ts
index 2a155c8dcfb..d407cd0741e 100644
--- a/apps/app/components/labels/index.ts
+++ b/apps/app/components/labels/index.ts
@@ -1,2 +1,4 @@
+export * from "./create-update-label-inline";
 export * from "./labels-list-modal";
+export * from "./single-label-group";
 export * from "./single-label";
diff --git a/apps/app/components/labels/single-label-group.tsx b/apps/app/components/labels/single-label-group.tsx
new file mode 100644
index 00000000000..efdb26f3878
--- /dev/null
+++ b/apps/app/components/labels/single-label-group.tsx
@@ -0,0 +1,136 @@
+import React from "react";
+
+import { useRouter } from "next/router";
+
+import { mutate } from "swr";
+
+// headless ui
+import { Disclosure, Transition } from "@headlessui/react";
+// services
+import issuesService from "services/issues.service";
+// ui
+import { CustomMenu } from "components/ui";
+// icons
+import { ChevronDownIcon, RectangleGroupIcon } from "@heroicons/react/24/outline";
+// types
+import { IIssueLabels } from "types";
+// fetch-keys
+import { PROJECT_ISSUE_LABELS } from "constants/fetch-keys";
+
+type Props = {
+  label: IIssueLabels;
+  labelChildren: IIssueLabels[];
+  addLabelToGroup: (parentLabel: IIssueLabels) => void;
+  editLabel: (label: IIssueLabels) => void;
+  handleLabelDelete: (labelId: string) => void;
+};
+
+export const SingleLabelGroup: React.FC<Props> = ({
+  label,
+  labelChildren,
+  addLabelToGroup,
+  editLabel,
+  handleLabelDelete,
+}) => {
+  const router = useRouter();
+  const { workspaceSlug, projectId } = router.query;
+
+  const removeFromGroup = (label: IIssueLabels) => {
+    if (!workspaceSlug || !projectId) return;
+
+    mutate<IIssueLabels[]>(
+      PROJECT_ISSUE_LABELS(projectId as string),
+      (prevData) =>
+        prevData?.map((l) => {
+          if (l.id === label.id) return { ...l, parent: null };
+
+          return l;
+        }),
+      false
+    );
+
+    issuesService
+      .patchIssueLabel(workspaceSlug as string, projectId as string, label.id, {
+        parent: null,
+      })
+      .then((res) => {
+        mutate(PROJECT_ISSUE_LABELS(projectId as string));
+      });
+  };
+
+  return (
+    <Disclosure as="div" className="rounded-md border p-3 text-gray-900 md:w-2/3" defaultOpen>
+      {({ open }) => (
+        <>
+          <div className="flex items-center justify-between gap-2 cursor-pointer">
+            <Disclosure.Button>
+              <div className="flex items-center gap-2">
+                <span>
+                  <ChevronDownIcon
+                    className={`h-4 w-4 text-gray-500 ${!open ? "-rotate-90 transform" : ""}`}
+                  />
+                </span>
+                <span>
+                  <RectangleGroupIcon className="h-4 w-4" />
+                </span>
+                <h6 className="text-sm">{label.name}</h6>
+              </div>
+            </Disclosure.Button>
+            <CustomMenu ellipsis>
+              <CustomMenu.MenuItem onClick={() => addLabelToGroup(label)}>
+                Add more labels
+              </CustomMenu.MenuItem>
+              <CustomMenu.MenuItem onClick={() => editLabel(label)}>Edit</CustomMenu.MenuItem>
+              <CustomMenu.MenuItem onClick={() => handleLabelDelete(label.id)}>
+                Delete
+              </CustomMenu.MenuItem>
+            </CustomMenu>
+          </div>
+          <Transition
+            show={open}
+            enter="transition duration-100 ease-out"
+            enterFrom="transform opacity-0"
+            enterTo="transform opacity-100"
+            leave="transition duration-75 ease-out"
+            leaveFrom="transform opacity-100"
+            leaveTo="transform opacity-0"
+          >
+            <Disclosure.Panel>
+              <div className="mt-2 ml-4">
+                {labelChildren.map((child) => (
+                  <div
+                    key={child.id}
+                    className="group pl-4 py-1 flex items-center justify-between rounded text-sm hover:bg-gray-100"
+                  >
+                    <h5 className="flex items-center gap-2">
+                      <span
+                        className="h-2 w-2 flex-shrink-0 rounded-full"
+                        style={{
+                          backgroundColor: child.color,
+                        }}
+                      />
+                      {child.name}
+                    </h5>
+                    <div className="opacity-0 pointer-events-none group-hover:opacity-100 group-hover:pointer-events-auto">
+                      <CustomMenu ellipsis>
+                        <CustomMenu.MenuItem onClick={() => removeFromGroup(child)}>
+                          Remove from group
+                        </CustomMenu.MenuItem>
+                        <CustomMenu.MenuItem onClick={() => editLabel(child)}>
+                          Edit
+                        </CustomMenu.MenuItem>
+                        <CustomMenu.MenuItem onClick={() => handleLabelDelete(child.id)}>
+                          Delete
+                        </CustomMenu.MenuItem>
+                      </CustomMenu>
+                    </div>
+                  </div>
+                ))}
+              </div>
+            </Disclosure.Panel>
+          </Transition>
+        </>
+      )}
+    </Disclosure>
+  );
+};
diff --git a/apps/app/components/labels/single-label.tsx b/apps/app/components/labels/single-label.tsx
index eb721a8ac54..927a30d5a1b 100644
--- a/apps/app/components/labels/single-label.tsx
+++ b/apps/app/components/labels/single-label.tsx
@@ -1,171 +1,43 @@
-import React, { useState } from "react";
+import React from "react";
 
-import { useRouter } from "next/router";
-
-import { mutate } from "swr";
-
-// headless ui
-import { Disclosure, Transition } from "@headlessui/react";
-// services
-import issuesService from "services/issues.service";
-// components
-import { LabelsListModal } from "components/labels";
 // ui
 import { CustomMenu } from "components/ui";
-// icons
-import { ChevronDownIcon } from "@heroicons/react/24/outline";
 // types
 import { IIssueLabels } from "types";
-// fetch-keys
-import { PROJECT_ISSUE_LABELS } from "constants/fetch-keys";
 
 type Props = {
   label: IIssueLabels;
-  issueLabels: IIssueLabels[];
+  addLabelToGroup: (parentLabel: IIssueLabels) => void;
   editLabel: (label: IIssueLabels) => void;
   handleLabelDelete: (labelId: string) => void;
 };
 
 export const SingleLabel: React.FC<Props> = ({
   label,
-  issueLabels,
+  addLabelToGroup,
   editLabel,
   handleLabelDelete,
-}) => {
-  const [labelsListModal, setLabelsListModal] = useState(false);
-
-  const router = useRouter();
-  const { workspaceSlug, projectId } = router.query;
-
-  const children = issueLabels?.filter((l) => l.parent === label.id);
-
-  const removeFromGroup = (label: IIssueLabels) => {
-    if (!workspaceSlug || !projectId) return;
-
-    mutate<IIssueLabels[]>(
-      PROJECT_ISSUE_LABELS(projectId as string),
-      (prevData) =>
-        prevData?.map((l) => {
-          if (l.id === label.id) return { ...l, parent: null };
-
-          return l;
-        }),
-      false
-    );
-
-    issuesService
-      .patchIssueLabel(workspaceSlug as string, projectId as string, label.id, {
-        parent: null,
-      })
-      .then((res) => {
-        mutate(PROJECT_ISSUE_LABELS(projectId as string));
-      });
-  };
-
-  return (
-    <>
-      <LabelsListModal
-        isOpen={labelsListModal}
-        handleClose={() => setLabelsListModal(false)}
-        parent={label}
-      />
-      {children && children.length === 0 ? (
-        label.parent === "" || !label.parent ? (
-          <div className="gap-2 space-y-3 divide-y rounded-md border p-3 md:w-2/3">
-            <div className="flex items-center justify-between">
-              <div className="flex items-center gap-2">
-                <span
-                  className="h-3 w-3 flex-shrink-0 rounded-full"
-                  style={{
-                    backgroundColor: label.color,
-                  }}
-                />
-                <h6 className="text-sm">{label.name}</h6>
-              </div>
-              <CustomMenu ellipsis>
-                <CustomMenu.MenuItem onClick={() => setLabelsListModal(true)}>
-                  Convert to group
-                </CustomMenu.MenuItem>
-                <CustomMenu.MenuItem onClick={() => editLabel(label)}>Edit</CustomMenu.MenuItem>
-                <CustomMenu.MenuItem onClick={() => handleLabelDelete(label.id)}>
-                  Delete
-                </CustomMenu.MenuItem>
-              </CustomMenu>
-            </div>
-          </div>
-        ) : null
-      ) : (
-        <Disclosure as="div" className="relative z-20 rounded-md border p-3 text-gray-900 md:w-2/3">
-          {({ open }) => (
-            <>
-              <div className="flex items-center justify-between gap-2 cursor-pointer">
-                <Disclosure.Button>
-                  <div className="flex items-center gap-2">
-                    <span>
-                      <ChevronDownIcon
-                        className={`h-4 w-4 text-gray-500 ${!open ? "-rotate-90 transform" : ""}`}
-                      />
-                    </span>
-                    <h6 className="text-sm">{label.name}</h6>
-                  </div>
-                </Disclosure.Button>
-                <CustomMenu ellipsis>
-                  <CustomMenu.MenuItem onClick={() => setLabelsListModal(true)}>
-                    Add more labels
-                  </CustomMenu.MenuItem>
-                  <CustomMenu.MenuItem onClick={() => editLabel(label)}>Edit</CustomMenu.MenuItem>
-                  <CustomMenu.MenuItem onClick={() => handleLabelDelete(label.id)}>
-                    Delete
-                  </CustomMenu.MenuItem>
-                </CustomMenu>
-              </div>
-              <Transition
-                show={open}
-                enter="transition duration-100 ease-out"
-                enterFrom="transform opacity-0"
-                enterTo="transform opacity-100"
-                leave="transition duration-75 ease-out"
-                leaveFrom="transform opacity-100"
-                leaveTo="transform opacity-0"
-              >
-                <Disclosure.Panel>
-                  <div className="mt-2 ml-4">
-                    {children.map((child) => (
-                      <div
-                        key={child.id}
-                        className="group pl-4 py-1 flex items-center justify-between rounded text-sm hover:bg-gray-100"
-                      >
-                        <h5 className="flex items-center gap-2">
-                          <span
-                            className="h-2 w-2 flex-shrink-0 rounded-full"
-                            style={{
-                              backgroundColor: child.color,
-                            }}
-                          />
-                          {child.name}
-                        </h5>
-                        <div className="opacity-0 pointer-events-none group-hover:opacity-100 group-hover:pointer-events-auto">
-                          <CustomMenu ellipsis>
-                            <CustomMenu.MenuItem onClick={() => removeFromGroup(child)}>
-                              Remove from group
-                            </CustomMenu.MenuItem>
-                            <CustomMenu.MenuItem onClick={() => editLabel(child)}>
-                              Edit
-                            </CustomMenu.MenuItem>
-                            <CustomMenu.MenuItem onClick={() => handleLabelDelete(child.id)}>
-                              Delete
-                            </CustomMenu.MenuItem>
-                          </CustomMenu>
-                        </div>
-                      </div>
-                    ))}
-                  </div>
-                </Disclosure.Panel>
-              </Transition>
-            </>
-          )}
-        </Disclosure>
-      )}
-    </>
-  );
-};
+}) => (
+  <div className="gap-2 space-y-3 divide-y rounded-md border p-3 md:w-2/3">
+    <div className="flex items-center justify-between">
+      <div className="flex items-center gap-2">
+        <span
+          className="h-3 w-3 flex-shrink-0 rounded-full"
+          style={{
+            backgroundColor: label.color,
+          }}
+        />
+        <h6 className="text-sm">{label.name}</h6>
+      </div>
+      <CustomMenu ellipsis>
+        <CustomMenu.MenuItem onClick={() => addLabelToGroup(label)}>
+          Convert to group
+        </CustomMenu.MenuItem>
+        <CustomMenu.MenuItem onClick={() => editLabel(label)}>Edit</CustomMenu.MenuItem>
+        <CustomMenu.MenuItem onClick={() => handleLabelDelete(label.id)}>
+          Delete
+        </CustomMenu.MenuItem>
+      </CustomMenu>
+    </div>
+  </div>
+);
diff --git a/apps/app/components/modules/sidebar.tsx b/apps/app/components/modules/sidebar.tsx
index 5625933846f..3ea95cec300 100644
--- a/apps/app/components/modules/sidebar.tsx
+++ b/apps/app/components/modules/sidebar.tsx
@@ -30,6 +30,8 @@ import {
 } from "components/modules";
 
 import "react-circular-progressbar/dist/styles.css";
+// components
+import { SidebarProgressStats } from "components/core";
 // ui
 import { CustomDatePicker, Loader } from "components/ui";
 // helpers
@@ -40,7 +42,6 @@ import { groupBy } from "helpers/array.helper";
 import { IIssue, IModule, ModuleIssueResponse } from "types";
 // fetch-keys
 import { MODULE_DETAILS } from "constants/fetch-keys";
-import SidebarProgressStats from "components/core/sidebar/sidebar-progress-stats";
 
 const defaultValues: Partial<IModule> = {
   lead: "",
diff --git a/apps/app/components/project/cycles/cycle-detail-sidebar/index.tsx b/apps/app/components/project/cycles/cycle-detail-sidebar/index.tsx
index 1650607f0c4..c55f30591a0 100644
--- a/apps/app/components/project/cycles/cycle-detail-sidebar/index.tsx
+++ b/apps/app/components/project/cycles/cycle-detail-sidebar/index.tsx
@@ -20,17 +20,16 @@ import useToast from "hooks/use-toast";
 // services
 import cyclesService from "services/cycles.service";
 // components
-import SidebarProgressStats from "components/core/sidebar/sidebar-progress-stats";
+import { SidebarProgressStats } from "components/core";
 // helpers
 import { copyTextToClipboard } from "helpers/string.helper";
 import { groupBy } from "helpers/array.helper";
+import { renderShortNumericDateFormat } from "helpers/date-time.helper";
 // types
 import { CycleIssueResponse, ICycle, IIssue } from "types";
 // fetch-keys
 import { CYCLE_DETAILS } from "constants/fetch-keys";
 
-import { renderShortNumericDateFormat } from "helpers/date-time.helper";
-
 type Props = {
   issues: IIssue[];
   cycle: ICycle | undefined;
diff --git a/apps/app/components/states/create-update-state-inline.tsx b/apps/app/components/states/create-update-state-inline.tsx
index 46043b0cdda..7d67f8fcd29 100644
--- a/apps/app/components/states/create-update-state-inline.tsx
+++ b/apps/app/components/states/create-update-state-inline.tsx
@@ -1,5 +1,7 @@
 import React, { useEffect } from "react";
 
+import { useRouter } from "next/router";
+
 import { mutate } from "swr";
 
 // react-hook-form
@@ -15,15 +17,13 @@ import useToast from "hooks/use-toast";
 // ui
 import { Button, CustomSelect, Input } from "components/ui";
 // types
-import type { IState, StateResponse } from "types";
+import type { IState } from "types";
 // fetch-keys
 import { STATE_LIST } from "constants/fetch-keys";
 // constants
 import { GROUP_CHOICES } from "constants/project";
 
 type Props = {
-  workspaceSlug?: string;
-  projectId?: string;
   data: IState | null;
   onClose: () => void;
   selectedGroup: StateGroup | null;
@@ -37,13 +37,10 @@ const defaultValues: Partial<IState> = {
   group: "backlog",
 };
 
-export const CreateUpdateStateInline: React.FC<Props> = ({
-  workspaceSlug,
-  projectId,
-  data,
-  onClose,
-  selectedGroup,
-}) => {
+export const CreateUpdateStateInline: React.FC<Props> = ({ data, onClose, selectedGroup }) => {
+  const router = useRouter();
+  const { workspaceSlug, projectId } = router.query;
+
   const { setToastAlert } = useToast();
 
   const {
@@ -59,16 +56,18 @@ export const CreateUpdateStateInline: React.FC<Props> = ({
   });
 
   useEffect(() => {
-    if (data === null) return;
+    if (!data) return;
+
     reset(data);
   }, [data, reset]);
 
   useEffect(() => {
-    if (!data)
-      reset({
-        ...defaultValues,
-        group: selectedGroup ?? "backlog",
-      });
+    if (data) return;
+
+    reset({
+      ...defaultValues,
+      group: selectedGroup ?? "backlog",
+    });
   }, [selectedGroup, data, reset]);
 
   const handleClose = () => {
@@ -78,14 +77,15 @@ export const CreateUpdateStateInline: React.FC<Props> = ({
 
   const onSubmit = async (formData: IState) => {
     if (!workspaceSlug || !projectId || isSubmitting) return;
+
     const payload: IState = {
       ...formData,
     };
     if (!data) {
       await stateService
-        .createState(workspaceSlug, projectId, { ...payload })
+        .createState(workspaceSlug as string, projectId as string, { ...payload })
         .then((res) => {
-          mutate(STATE_LIST(projectId));
+          mutate(STATE_LIST(projectId as string));
           handleClose();
 
           setToastAlert({
@@ -103,11 +103,11 @@ export const CreateUpdateStateInline: React.FC<Props> = ({
         });
     } else {
       await stateService
-        .updateState(workspaceSlug, projectId, data.id, {
+        .updateState(workspaceSlug as string, projectId as string, data.id, {
           ...payload,
         })
         .then((res) => {
-          mutate(STATE_LIST(projectId));
+          mutate(STATE_LIST(projectId as string));
           handleClose();
 
           setToastAlert({
diff --git a/apps/app/components/states/index.ts b/apps/app/components/states/index.ts
index 63bb55a9ced..167e12d8b13 100644
--- a/apps/app/components/states/index.ts
+++ b/apps/app/components/states/index.ts
@@ -1,3 +1,4 @@
 export * from "./create-update-state-inline";
 export * from "./create-update-state-modal";
 export * from "./delete-state-modal";
+export * from "./single-state";
diff --git a/apps/app/components/states/single-state.tsx b/apps/app/components/states/single-state.tsx
new file mode 100644
index 00000000000..5e9aff80c6c
--- /dev/null
+++ b/apps/app/components/states/single-state.tsx
@@ -0,0 +1,217 @@
+import { useState } from "react";
+
+import { useRouter } from "next/router";
+
+import { mutate } from "swr";
+
+// services
+import stateService from "services/state.service";
+// hooks
+import useToast from "hooks/use-toast";
+// ui
+import { Tooltip } from "components/ui";
+// icons
+import {
+  ArrowDownIcon,
+  ArrowUpIcon,
+  PencilSquareIcon,
+  TrashIcon,
+} from "@heroicons/react/24/outline";
+// helpers
+import { addSpaceIfCamelCase } from "helpers/string.helper";
+import { groupBy, orderArrayBy } from "helpers/array.helper";
+import { orderStateGroups } from "helpers/state.helper";
+// types
+import { IState } from "types";
+import { StateGroup } from "components/states";
+// fetch-keys
+import { STATE_LIST } from "constants/fetch-keys";
+
+type Props = {
+  index: number;
+  currentGroup: string;
+  state: IState;
+  statesList: IState[];
+  activeGroup: StateGroup;
+  handleEditState: () => void;
+  handleDeleteState: () => void;
+};
+
+export const SingleState: React.FC<Props> = ({
+  index,
+  currentGroup,
+  state,
+  statesList,
+  activeGroup,
+  handleEditState,
+  handleDeleteState,
+}) => {
+  const [isSubmitting, setIsSubmitting] = useState(false);
+
+  const router = useRouter();
+  const { workspaceSlug, projectId } = router.query;
+
+  const { setToastAlert } = useToast();
+
+  const groupLength = statesList.filter((s) => s.group === currentGroup).length;
+
+  const handleMakeDefault = (stateId: string) => {
+    setIsSubmitting(true);
+
+    const currentDefaultState = statesList.find((s) => s.default);
+
+    if (currentDefaultState)
+      stateService
+        .patchState(workspaceSlug as string, projectId as string, currentDefaultState?.id ?? "", {
+          default: false,
+        })
+        .then(() => {
+          stateService
+            .patchState(workspaceSlug as string, projectId as string, stateId, {
+              default: true,
+            })
+            .then((res) => {
+              mutate(STATE_LIST(projectId as string));
+              setToastAlert({
+                type: "success",
+                title: "Successful",
+                message: `${res.name} state set to default successfuly.`,
+              });
+              setIsSubmitting(false);
+            })
+            .catch((err) => {
+              setToastAlert({
+                type: "error",
+                title: "Error",
+                message: "Error in setting the state to default.",
+              });
+              setIsSubmitting(false);
+            });
+        });
+    else
+      stateService
+        .patchState(workspaceSlug as string, projectId as string, stateId, {
+          default: true,
+        })
+        .then((res) => {
+          mutate(STATE_LIST(projectId as string));
+          setToastAlert({
+            type: "success",
+            title: "Successful",
+            message: `${res.name} state set to default successfuly.`,
+          });
+          setIsSubmitting(false);
+        })
+        .catch(() => {
+          setToastAlert({
+            type: "error",
+            title: "Error",
+            message: "Error in setting the state to default.",
+          });
+          setIsSubmitting(false);
+        });
+  };
+
+  const handleMove = (state: IState, index: number, direction: "up" | "down") => {
+    let newSequence = 15000;
+
+    if (direction === "up") {
+      if (index === 1) newSequence = statesList[0].sequence - 15000;
+      else newSequence = (statesList[index - 2].sequence + statesList[index - 1].sequence) / 2;
+    } else {
+      if (index === groupLength - 2) newSequence = statesList[groupLength - 1].sequence + 15000;
+      else newSequence = (statesList[index + 2].sequence + statesList[index + 1].sequence) / 2;
+    }
+
+    let newStatesList = statesList.map((s) => {
+      if (s.id === state.id)
+        return {
+          ...s,
+          sequence: newSequence,
+        };
+
+      return s;
+    });
+    newStatesList = orderArrayBy(newStatesList, "sequence", "ascending");
+    mutate(
+      STATE_LIST(projectId as string),
+      orderStateGroups(groupBy(newStatesList, "group")),
+      false
+    );
+
+    stateService
+      .patchState(workspaceSlug as string, projectId as string, state.id, {
+        sequence: newSequence,
+      })
+      .then((res) => {
+        console.log(res);
+        mutate(STATE_LIST(projectId as string));
+      })
+      .catch((err) => {
+        console.error(err);
+      });
+  };
+
+  return (
+    <div
+      className={`group flex items-center justify-between gap-2 border-b bg-gray-50 p-3 ${
+        activeGroup !== currentGroup ? "last:border-0" : ""
+      }`}
+    >
+      <div className="flex items-center gap-2">
+        <div
+          className="h-3 w-3 flex-shrink-0 rounded-full"
+          style={{
+            backgroundColor: state.color,
+          }}
+        />
+        <h6 className="text-sm">{addSpaceIfCamelCase(state.name)}</h6>
+      </div>
+      <div className="flex items-center gap-2">
+        {index !== 0 && (
+          <button
+            type="button"
+            className="hidden group-hover:inline-block text-gray-400 hover:text-gray-900"
+            onClick={() => handleMove(state, index, "up")}
+          >
+            <ArrowUpIcon className="h-4 w-4" />
+          </button>
+        )}
+        {!(index === groupLength - 1) && (
+          <button
+            type="button"
+            className="hidden group-hover:inline-block text-gray-400 hover:text-gray-900"
+            onClick={() => handleMove(state, index, "down")}
+          >
+            <ArrowDownIcon className="h-4 w-4" />
+          </button>
+        )}
+        {state.default ? (
+          <span className="text-xs text-gray-400">Default</span>
+        ) : (
+          <button
+            type="button"
+            className="hidden group-hover:inline-block text-xs text-gray-400 hover:text-gray-900"
+            onClick={() => handleMakeDefault(state.id)}
+            disabled={isSubmitting}
+          >
+            Set as default
+          </button>
+        )}
+        <Tooltip content="Cannot delete the default state." disabled={!state.default}>
+          <button
+            type="button"
+            className={`${state.default ? "cursor-not-allowed" : ""} grid place-items-center`}
+            onClick={handleDeleteState}
+            disabled={state.default}
+          >
+            <TrashIcon className="h-4 w-4 text-red-400" />
+          </button>
+        </Tooltip>
+        <button type="button" className="grid place-items-center" onClick={handleEditState}>
+          <PencilSquareIcon className="h-4 w-4 text-gray-400" />
+        </button>
+      </div>
+    </div>
+  );
+};
diff --git a/apps/app/components/ui/tooltip.tsx b/apps/app/components/ui/tooltip.tsx
new file mode 100644
index 00000000000..5c91b7f0d96
--- /dev/null
+++ b/apps/app/components/ui/tooltip.tsx
@@ -0,0 +1,66 @@
+import React, { useEffect, useState } from "react";
+
+export type Props = {
+  direction?: "top" | "right" | "bottom" | "left";
+  content: string | React.ReactNode;
+  margin?: string;
+  children: React.ReactNode;
+  className?: string;
+  disabled?: boolean;
+};
+
+export const Tooltip: React.FC<Props> = ({
+  content,
+  direction = "top",
+  children,
+  margin = "24px",
+  className = "",
+  disabled = false,
+}) => {
+  const [active, setActive] = useState(false);
+  const [styleConfig, setStyleConfig] = useState(`top-[calc(-100%-${margin})]`);
+  let timeout: any;
+
+  const showToolTip = () => {
+    timeout = setTimeout(() => {
+      setActive(true);
+    }, 300);
+  };
+
+  const hideToolTip = () => {
+    clearInterval(timeout);
+    setActive(false);
+  };
+
+  const tooltipStyles = {
+    top: "left-[50%] translate-x-[-50%] before:contents-[''] before:border-solid before:border-transparent before:h-0 before:w-0 before:absolute before:pointer-events-none before:border-[6px] before:left-[50%] before:ml-[calc(6px*-1)] before:top-full before:border-t-black",
+
+    right: "right-[-100%] top-[50%] translate-x-0 translate-y-[-50%]",
+
+    bottom:
+      "left-[50%] translate-x-[-50%] before:contents-[''] before:border-solid before:border-transparent before:h-0 before:w-0 before:absolute before:pointer-events-none before:border-[6px] before:left-[50%] before:ml-[calc(6px*-1)] before:bottom-full before:border-b-black",
+
+    left: "left-[-100%] top-[50%] translate-x-0 translate-y-[-50%]",
+  };
+
+  useEffect(() => {
+    const styleConfig = `${direction}-[calc(-100%-${margin})]`;
+    setStyleConfig(styleConfig);
+  }, [margin, direction]);
+
+  return (
+    <div className="relative inline-block" onMouseEnter={showToolTip} onMouseLeave={hideToolTip}>
+      {children}
+      {active && (
+        <div
+          className={`${className} ${
+            disabled ? "hidden" : ""
+          } absolute p-[6px] text-xs z-20 rounded leading-1 text-white bg-black text-center w-max max-w-[300px] 
+          ${tooltipStyles[direction]} ${styleConfig}`}
+        >
+          {content}
+        </div>
+      )}
+    </div>
+  );
+};
diff --git a/apps/app/components/ui/tooltip/index.tsx b/apps/app/components/ui/tooltip/index.tsx
deleted file mode 100644
index d49013a8bb9..00000000000
--- a/apps/app/components/ui/tooltip/index.tsx
+++ /dev/null
@@ -1,73 +0,0 @@
-import React, { useEffect, useState } from "react";
-
-export type Props = {
-  direction?: "top" | "right" | "bottom" | "left";
-  content: string | React.ReactNode;
-  margin?: string;
-  children: React.ReactNode;
-  customStyle?: string;
-};
-
-const Tooltip: React.FC<Props> = ({
-  content,
-  direction = "top",
-  children,
-  margin = "24px",
-  customStyle,
-}) => {
-  const [active, setActive] = useState(false);
-  const [styleConfig, setStyleConfig] = useState("top-[calc(-100%-24px)]");
-  let timeout: any;
-
-  const showToolTip = () => {
-    timeout = setTimeout(() => {
-      setActive(true);
-    }, 300);
-  };
-
-  const hideToolTip = () => {
-    clearInterval(timeout);
-    setActive(false);
-  };
-
-  const tooltipStyles = {
-    top: `
-    left-[50%] translate-x-[-50%] before:contents-[""] before:border-solid 
-    before:border-transparent before:h-0 before:w-0 before:absolute before:pointer-events-none 
-    before:border-[6px] before:left-[50%] before:ml-[calc(6px*-1)] before:top-full before:border-t-black`,
-
-    right: `
-    right-[-100%] top-[50%]
-    translate-x-0 translate-y-[-50%] `,
-
-    bottom: `
-    left-[50%] translate-x-[-50%] before:contents-[""] before:border-solid 
-    before:border-transparent before:h-0 before:w-0 before:absolute before:pointer-events-none 
-    before:border-[6px] before:left-[50%] before:ml-[calc(6px*-1)] before:bottom-full before:border-b-black`,
-
-    left: `
-    left-[-100%] top-[50%] 
-    translate-x-0 translate-y-[-50%] `,
-  };
-
-  useEffect(() => {
-    const styleConfig = direction + "-[calc(-100%-" + margin + ")]";
-    setStyleConfig(styleConfig);
-  }, [margin, direction]);
-
-  return (
-    <div className="inline-block relative" onMouseEnter={showToolTip} onMouseLeave={hideToolTip}>
-      {children}
-      {active && (
-        <div
-          className={`absolute p-[6px] text-xs z-20 rounded leading-1 text-white bg-black text-center w-max max-w-[300px] 
-          ${tooltipStyles[direction]} ${customStyle ? customStyle : ""} ${styleConfig}`}
-        >
-          {content}
-        </div>
-      )}
-    </div>
-  );
-};
-
-export default Tooltip;
diff --git a/apps/app/hooks/use-issue-properties.tsx b/apps/app/hooks/use-issue-properties.tsx
index c33cc3e61ba..08ff54362ce 100644
--- a/apps/app/hooks/use-issue-properties.tsx
+++ b/apps/app/hooks/use-issue-properties.tsx
@@ -17,7 +17,6 @@ const initialValues: Properties = {
   sub_issue_count: false,
 };
 
-// TODO: CHECK THIS LOGIC
 const useIssuesProperties = (workspaceSlug?: string, projectId?: string) => {
   const [properties, setProperties] = useState<Properties>(initialValues);
 
@@ -34,6 +33,7 @@ const useIssuesProperties = (workspaceSlug?: string, projectId?: string) => {
 
   useEffect(() => {
     if (!issueProperties || !workspaceSlug || !projectId || !user) return;
+
     setProperties({ ...initialValues, ...issueProperties.properties });
 
     if (Object.keys(issueProperties).length === 0)
@@ -53,6 +53,7 @@ const useIssuesProperties = (workspaceSlug?: string, projectId?: string) => {
       if (!workspaceSlug || !user) return;
 
       setProperties((prev) => ({ ...prev, [key]: !prev[key] }));
+
       if (issueProperties && projectId) {
         mutateIssueProperties(
           (prev) =>
diff --git a/apps/app/layouts/app-layout/index.tsx b/apps/app/layouts/app-layout/index.tsx
index d6462fdd374..fddc5f2f518 100644
--- a/apps/app/layouts/app-layout/index.tsx
+++ b/apps/app/layouts/app-layout/index.tsx
@@ -13,7 +13,7 @@ import useUser from "hooks/use-user";
 import { Button, Spinner } from "components/ui";
 // components
 import { NotAuthorizedView } from "components/core";
-import CommandPalette from "components/command-palette";
+import { CommandPalette } from "components/command-palette";
 import { JoinProject } from "components/project";
 // local components
 import Container from "layouts/container";
diff --git a/apps/app/pages/[workspaceSlug]/projects/[projectId]/settings/labels.tsx b/apps/app/pages/[workspaceSlug]/projects/[projectId]/settings/labels.tsx
index 41ca8734388..1915dc3890d 100644
--- a/apps/app/pages/[workspaceSlug]/projects/[projectId]/settings/labels.tsx
+++ b/apps/app/pages/[workspaceSlug]/projects/[projectId]/settings/labels.tsx
@@ -4,24 +4,22 @@ import { useRouter } from "next/router";
 
 import useSWR from "swr";
 
-// react-hook-form
-import { Controller, SubmitHandler, useForm } from "react-hook-form";
-// react-color
-import { TwitterPicker } from "react-color";
-// headless ui
-import { Popover, Transition } from "@headlessui/react";
 // services
 import projectService from "services/project.service";
-import workspaceService from "services/workspace.service";
 import issuesService from "services/issues.service";
 // lib
 import { requiredAdmin } from "lib/auth";
 // layouts
 import AppLayout from "layouts/app-layout";
 // components
-import { SingleLabel } from "components/labels";
+import {
+  CreateUpdateLabelInline,
+  LabelsListModal,
+  SingleLabel,
+  SingleLabelGroup,
+} from "components/labels";
 // ui
-import { Button, Input, Loader } from "components/ui";
+import { Button, Loader } from "components/ui";
 import { BreadcrumbItem, Breadcrumbs } from "components/breadcrumbs";
 // icons
 import { PlusIcon } from "@heroicons/react/24/outline";
@@ -29,19 +27,21 @@ import { PlusIcon } from "@heroicons/react/24/outline";
 import { IIssueLabels, UserAuth } from "types";
 import type { NextPageContext, NextPage } from "next";
 // fetch-keys
-import { PROJECT_DETAILS, PROJECT_ISSUE_LABELS, WORKSPACE_DETAILS } from "constants/fetch-keys";
-
-const defaultValues: Partial<IIssueLabels> = {
-  name: "",
-  color: "#ff0000",
-};
+import { PROJECT_DETAILS, PROJECT_ISSUE_LABELS } from "constants/fetch-keys";
 
 const LabelsSettings: NextPage<UserAuth> = (props) => {
   const { isMember, isOwner, isViewer, isGuest } = props;
 
+  // create/edit label form
   const [labelForm, setLabelForm] = useState(false);
+
+  // edit label
   const [isUpdating, setIsUpdating] = useState(false);
-  const [labelIdForUpdate, setLabelIdForUpdate] = useState<string | null>(null);
+  const [labelToUpdate, setLabelToUpdate] = useState<IIssueLabels | null>(null);
+
+  // labels list modal
+  const [labelsListModal, setLabelsListModal] = useState(false);
+  const [parentLabel, setParentLabel] = useState<IIssueLabels | undefined>(undefined);
 
   const router = useRouter();
   const { workspaceSlug, projectId } = router.query;
@@ -60,57 +60,20 @@ const LabelsSettings: NextPage<UserAuth> = (props) => {
       : null
   );
 
-  const {
-    register,
-    handleSubmit,
-    reset,
-    control,
-    setValue,
-    formState: { errors, isSubmitting },
-    watch,
-  } = useForm<IIssueLabels>({ defaultValues });
-
   const newLabel = () => {
-    reset();
     setIsUpdating(false);
     setLabelForm(true);
   };
 
+  const addLabelToGroup = (parentLabel: IIssueLabels) => {
+    setLabelsListModal(true);
+    setParentLabel(parentLabel);
+  };
+
   const editLabel = (label: IIssueLabels) => {
     setLabelForm(true);
-    setValue("color", label.color);
-    setValue("name", label.name);
     setIsUpdating(true);
-    setLabelIdForUpdate(label.id);
-  };
-
-  const handleLabelCreate: SubmitHandler<IIssueLabels> = async (formData) => {
-    if (!workspaceSlug || !projectDetails || isSubmitting) return;
-
-    await issuesService
-      .createIssueLabel(workspaceSlug as string, projectDetails.id, formData)
-      .then((res) => {
-        mutate((prevData) => [res, ...(prevData ?? [])], false);
-        reset(defaultValues);
-        setLabelForm(false);
-      });
-  };
-
-  const handleLabelUpdate: SubmitHandler<IIssueLabels> = async (formData) => {
-    if (!workspaceSlug || !projectDetails || isSubmitting) return;
-
-    await issuesService
-      .patchIssueLabel(workspaceSlug as string, projectDetails.id, labelIdForUpdate ?? "", formData)
-      .then((res) => {
-        console.log(res);
-        reset(defaultValues);
-        mutate(
-          (prevData) =>
-            prevData?.map((p) => (p.id === labelIdForUpdate ? { ...p, ...formData } : p)),
-          false
-        );
-        setLabelForm(false);
-      });
+    setLabelToUpdate(label);
   };
 
   const handleLabelDelete = (labelId: string) => {
@@ -128,146 +91,85 @@ const LabelsSettings: NextPage<UserAuth> = (props) => {
   };
 
   return (
-    <AppLayout
-      settingsLayout="project"
-      memberType={{ isMember, isOwner, isViewer, isGuest }}
-      breadcrumbs={
-        <Breadcrumbs>
-          <BreadcrumbItem
-            title={`${projectDetails?.name ?? "Project"}`}
-            link={`/${workspaceSlug}/projects/${projectDetails?.id}/issues`}
-          />
-          <BreadcrumbItem title="Labels Settings" />
-        </Breadcrumbs>
-      }
-    >
-      <section className="space-y-8">
-        <div>
-          <h3 className="text-3xl font-bold leading-6 text-gray-900">Labels</h3>
-          <p className="mt-4 text-sm text-gray-500">Manage the labels of this project.</p>
-        </div>
-        <div className="flex items-center justify-between gap-2 md:w-2/3">
-          <h4 className="text-md mb-1 leading-6 text-gray-900">Manage labels</h4>
-          <Button theme="secondary" className="flex items-center gap-x-1" onClick={newLabel}>
-            <PlusIcon className="h-4 w-4" />
-            New label
-          </Button>
-        </div>
-        <div className="space-y-5">
-          <div
-            className={`flex items-center gap-2 rounded-md border p-3 md:w-2/3 ${
-              labelForm ? "" : "hidden"
-            }`}
-          >
-            <div className="h-8 w-8 flex-shrink-0">
-              <Popover className="relative flex h-full w-full items-center justify-center rounded-xl bg-gray-200">
-                {({ open }) => (
-                  <>
-                    <Popover.Button
-                      className={`group inline-flex items-center text-base font-medium focus:outline-none focus:ring-2 focus:ring-indigo-500 focus:ring-offset-2 ${
-                        open ? "text-gray-900" : "text-gray-500"
-                      }`}
-                    >
-                      {watch("color") && watch("color") !== "" && (
-                        <span
-                          className="h-4 w-4 rounded"
-                          style={{
-                            backgroundColor: watch("color") ?? "green",
-                          }}
-                        />
-                      )}
-                    </Popover.Button>
-
-                    <Transition
-                      as={React.Fragment}
-                      enter="transition ease-out duration-200"
-                      enterFrom="opacity-0 translate-y-1"
-                      enterTo="opacity-100 translate-y-0"
-                      leave="transition ease-in duration-150"
-                      leaveFrom="opacity-100 translate-y-0"
-                      leaveTo="opacity-0 translate-y-1"
-                    >
-                      <Popover.Panel className="absolute top-full left-0 z-20 mt-3 w-screen max-w-xs px-2 sm:px-0">
-                        <Controller
-                          name="color"
-                          control={control}
-                          render={({ field: { value, onChange } }) => (
-                            <TwitterPicker
-                              color={value}
-                              onChange={(value) => onChange(value.hex)}
-                            />
-                          )}
-                        />
-                      </Popover.Panel>
-                    </Transition>
-                  </>
-                )}
-              </Popover>
-            </div>
-            <div className="flex w-full flex-col justify-center">
-              <Input
-                type="text"
-                id="labelName"
-                name="name"
-                register={register}
-                placeholder="Label title"
-                validations={{
-                  required: "Label title is required",
-                }}
-                error={errors.name}
-              />
-            </div>
-            <Button
-              type="button"
-              theme="secondary"
-              onClick={() => {
-                reset();
-                setLabelForm(false);
-              }}
-            >
-              Cancel
+    <>
+      <LabelsListModal
+        isOpen={labelsListModal}
+        handleClose={() => setLabelsListModal(false)}
+        parent={parentLabel}
+      />
+      <AppLayout
+        settingsLayout="project"
+        memberType={{ isMember, isOwner, isViewer, isGuest }}
+        breadcrumbs={
+          <Breadcrumbs>
+            <BreadcrumbItem
+              title={`${projectDetails?.name ?? "Project"}`}
+              link={`/${workspaceSlug}/projects/${projectDetails?.id}/issues`}
+            />
+            <BreadcrumbItem title="Labels Settings" />
+          </Breadcrumbs>
+        }
+      >
+        <section className="space-y-8">
+          <div>
+            <h3 className="text-3xl font-bold leading-6 text-gray-900">Labels</h3>
+            <p className="mt-4 text-sm text-gray-500">Manage the labels of this project.</p>
+          </div>
+          <div className="flex items-center justify-between gap-2 md:w-2/3">
+            <h4 className="text-md mb-1 leading-6 text-gray-900">Manage labels</h4>
+            <Button theme="secondary" className="flex items-center gap-x-1" onClick={newLabel}>
+              <PlusIcon className="h-4 w-4" />
+              New label
             </Button>
-            {isUpdating ? (
-              <Button
-                type="button"
-                onClick={handleSubmit(handleLabelUpdate)}
-                disabled={isSubmitting}
-              >
-                {isSubmitting ? "Updating" : "Update"}
-              </Button>
-            ) : (
-              <Button
-                type="button"
-                onClick={handleSubmit(handleLabelCreate)}
-                disabled={isSubmitting}
-              >
-                {isSubmitting ? "Adding" : "Add"}
-              </Button>
-            )}
           </div>
-          <>
-            {issueLabels ? (
-              issueLabels.map((label) => (
-                <SingleLabel
-                  key={label.id}
-                  label={label}
-                  issueLabels={issueLabels}
-                  editLabel={editLabel}
-                  handleLabelDelete={handleLabelDelete}
-                />
-              ))
-            ) : (
-              <Loader className="space-y-5 md:w-2/3">
-                <Loader.Item height="40px" />
-                <Loader.Item height="40px" />
-                <Loader.Item height="40px" />
-                <Loader.Item height="40px" />
-              </Loader>
-            )}
-          </>
-        </div>
-      </section>
-    </AppLayout>
+          <div className="space-y-5">
+            <CreateUpdateLabelInline
+              labelForm={labelForm}
+              setLabelForm={setLabelForm}
+              isUpdating={isUpdating}
+              labelToUpdate={labelToUpdate}
+            />
+            <>
+              {issueLabels ? (
+                issueLabels.map((label) => {
+                  const children = issueLabels?.filter((l) => l.parent === label.id);
+
+                  if (children && children.length === 0) {
+                    if (!label.parent)
+                      return (
+                        <SingleLabel
+                          key={label.id}
+                          label={label}
+                          addLabelToGroup={() => addLabelToGroup(label)}
+                          editLabel={editLabel}
+                          handleLabelDelete={handleLabelDelete}
+                        />
+                      );
+                  } else
+                    return (
+                      <SingleLabelGroup
+                        key={label.id}
+                        label={label}
+                        labelChildren={children}
+                        addLabelToGroup={addLabelToGroup}
+                        editLabel={editLabel}
+                        handleLabelDelete={handleLabelDelete}
+                      />
+                    );
+                })
+              ) : (
+                <Loader className="space-y-5 md:w-2/3">
+                  <Loader.Item height="40px" />
+                  <Loader.Item height="40px" />
+                  <Loader.Item height="40px" />
+                  <Loader.Item height="40px" />
+                </Loader>
+              )}
+            </>
+          </div>
+        </section>
+      </AppLayout>
+    </>
   );
 };
 
diff --git a/apps/app/pages/[workspaceSlug]/projects/[projectId]/settings/states.tsx b/apps/app/pages/[workspaceSlug]/projects/[projectId]/settings/states.tsx
index 267f812a356..4cec9379e71 100644
--- a/apps/app/pages/[workspaceSlug]/projects/[projectId]/settings/states.tsx
+++ b/apps/app/pages/[workspaceSlug]/projects/[projectId]/settings/states.tsx
@@ -4,22 +4,26 @@ import { useRouter } from "next/router";
 
 import useSWR from "swr";
 
+// lib
+import { requiredAdmin } from "lib/auth";
 // services
 import stateService from "services/state.service";
 import projectService from "services/project.service";
-// lib
-import { requiredAdmin } from "lib/auth";
 // layouts
 import AppLayout from "layouts/app-layout";
 // components
-import { CreateUpdateStateInline, DeleteStateModal, StateGroup } from "components/states";
+import {
+  CreateUpdateStateInline,
+  DeleteStateModal,
+  SingleState,
+  StateGroup,
+} from "components/states";
 // ui
 import { Loader } from "components/ui";
 import { BreadcrumbItem, Breadcrumbs } from "components/breadcrumbs";
 // icons
-import { PencilSquareIcon, PlusIcon, TrashIcon } from "@heroicons/react/24/outline";
+import { PlusIcon } from "@heroicons/react/24/outline";
 // helpers
-import { addSpaceIfCamelCase } from "helpers/string.helper";
 import { getStatesList, orderStateGroups } from "helpers/state.helper";
 // types
 import { UserAuth } from "types";
@@ -34,9 +38,8 @@ const StatesSettings: NextPage<UserAuth> = (props) => {
   const [selectedState, setSelectedState] = useState<string | null>(null);
   const [selectDeleteState, setSelectDeleteState] = useState<string | null>(null);
 
-  const {
-    query: { workspaceSlug, projectId },
-  } = useRouter();
+  const router = useRouter();
+  const { workspaceSlug, projectId } = router.query;
 
   const { data: projectDetails } = useSWR(
     workspaceSlug && projectId ? PROJECT_DETAILS(projectId as string) : null,
@@ -99,54 +102,33 @@ const StatesSettings: NextPage<UserAuth> = (props) => {
                       <div className="space-y-1 rounded-xl border p-1 md:w-2/3">
                         {key === activeGroup && (
                           <CreateUpdateStateInline
-                            projectId={projectDetails.id}
                             onClose={() => {
                               setActiveGroup(null);
                               setSelectedState(null);
                             }}
-                            workspaceSlug={workspaceSlug as string}
                             data={null}
                             selectedGroup={key as keyof StateGroup}
                           />
                         )}
-                        {orderedStateGroups[key].map((state) =>
+                        {orderedStateGroups[key].map((state, index) =>
                           state.id !== selectedState ? (
-                            <div
+                            <SingleState
                               key={state.id}
-                              className={`flex items-center justify-between gap-2 border-b bg-gray-50 p-3 ${
-                                activeGroup !== key ? "last:border-0" : ""
-                              }`}
-                            >
-                              <div className="flex items-center gap-2">
-                                <div
-                                  className="h-3 w-3 flex-shrink-0 rounded-full"
-                                  style={{
-                                    backgroundColor: state.color,
-                                  }}
-                                />
-                                <h6 className="text-sm">{addSpaceIfCamelCase(state.name)}</h6>
-                              </div>
-                              <div className="flex items-center gap-2">
-                                <button
-                                  type="button"
-                                  onClick={() => setSelectDeleteState(state.id)}
-                                >
-                                  <TrashIcon className="h-4 w-4 text-red-400" />
-                                </button>
-                                <button type="button" onClick={() => setSelectedState(state.id)}>
-                                  <PencilSquareIcon className="h-4 w-4 text-gray-400" />
-                                </button>
-                              </div>
-                            </div>
+                              index={index}
+                              currentGroup={key}
+                              state={state}
+                              statesList={statesList}
+                              activeGroup={activeGroup}
+                              handleEditState={() => setSelectedState(state.id)}
+                              handleDeleteState={() => setSelectDeleteState(state.id)}
+                            />
                           ) : (
                             <div className="border-b last:border-b-0" key={state.id}>
                               <CreateUpdateStateInline
-                                projectId={projectDetails.id}
                                 onClose={() => {
                                   setActiveGroup(null);
                                   setSelectedState(null);
                                 }}
-                                workspaceSlug={workspaceSlug as string}
                                 data={
                                   statesList?.find((state) => state.id === selectedState) ?? null
                                 }
diff --git a/apps/app/types/state.d.ts b/apps/app/types/state.d.ts
index 5f69ae49f32..29096c30280 100644
--- a/apps/app/types/state.d.ts
+++ b/apps/app/types/state.d.ts
@@ -1,17 +1,18 @@
 export interface IState {
   readonly id: string;
+  color: string;
   readonly created_at: Date;
-  readonly updated_at: Date;
-  name: string;
+  readonly created_by: string;
+  default: boolean;
   description: string;
-  color: string;
+  group: "backlog" | "unstarted" | "started" | "completed" | "cancelled";
+  name: string;
+  project: string;
+  sequence: number;
   readonly slug: string;
-  readonly created_by: string;
+  readonly updated_at: Date;
   readonly updated_by: string;
-  project: string;
   workspace: string;
-  sequence: number;
-  group: "backlog" | "unstarted" | "started" | "completed" | "cancelled";
 }
 
 export interface StateResponse {