diff --git a/packages/types/src/favorite/favorite.d.ts b/packages/types/src/favorite/favorite.d.ts
index 154d0e26616..092a1209599 100644
--- a/packages/types/src/favorite/favorite.d.ts
+++ b/packages/types/src/favorite/favorite.d.ts
@@ -1,9 +1,22 @@
+type TLogoProps = {
+  in_use: "emoji" | "icon";
+  emoji?: {
+    value?: string;
+    url?: string;
+  };
+  icon?: {
+    name?: string;
+    color?: string;
+  };
+};
+
 export type IFavorite = {
   id: string;
   name: string;
   entity_type: string;
   entity_data: {
     name: string;
+    logo_props?: TLogoProps | undefined;
   };
   is_folder: boolean;
   sort_order: number;
diff --git a/web/core/components/project/create-project-form.tsx b/web/core/components/project/create-project-form.tsx
index 65c620635c6..53de7297964 100644
--- a/web/core/components/project/create-project-form.tsx
+++ b/web/core/components/project/create-project-form.tsx
@@ -294,7 +294,7 @@ export const CreateProjectForm: FC<Props> = observer((props) => {
               />
               <Tooltip
                 isMobile={isMobile}
-                tooltipContent="Helps you identify issues in the project uniquely, (e.g. APP-123). Max 5 characters."
+                tooltipContent="Helps you identify issues in the project uniquely. Max 5 characters."
                 className="text-sm"
                 position="right-top"
               >
diff --git a/web/core/components/project/form.tsx b/web/core/components/project/form.tsx
index 737f819835c..332c7528490 100644
--- a/web/core/components/project/form.tsx
+++ b/web/core/components/project/form.tsx
@@ -298,7 +298,7 @@ export const ProjectDetailsForm: FC<IProjectDetailsForm> = (props) => {
               />
               <Tooltip
                 isMobile={isMobile}
-                tooltipContent="Helps you identify issues in the project uniquely, (e.g. APP-123). Max 5 characters."
+                tooltipContent="Helps you identify issues in the project uniquely. Max 5 characters."
                 className="text-sm"
                 position="right-top"
               >
diff --git a/web/core/components/workspace/sidebar/favorites/favorite-item.tsx b/web/core/components/workspace/sidebar/favorites/favorite-item.tsx
index 79cd8dc563a..f824fc493f3 100644
--- a/web/core/components/workspace/sidebar/favorites/favorite-item.tsx
+++ b/web/core/components/workspace/sidebar/favorites/favorite-item.tsx
@@ -9,7 +9,16 @@ import { useParams } from "next/navigation";
 import { Briefcase, FileText, Layers, MoreHorizontal, Star } from "lucide-react";
 // ui
 import { IFavorite } from "@plane/types";
-import { ContrastIcon, CustomMenu, DiceIcon, DragHandle, FavoriteFolderIcon, LayersIcon, Tooltip } from "@plane/ui";
+import {
+  ContrastIcon,
+  CustomMenu,
+  DiceIcon,
+  DragHandle,
+  FavoriteFolderIcon,
+  LayersIcon,
+  Logo,
+  Tooltip,
+} from "@plane/ui";
 // components
 import { SidebarNavItem } from "@/components/sidebar";
 
@@ -20,6 +29,17 @@ import { useAppTheme } from "@/hooks/store";
 import useOutsideClickDetector from "@/hooks/use-outside-click-detector";
 import { usePlatformOS } from "@/hooks/use-platform-os";
 
+const iconClassName = `flex-shrink-0 size-4 stroke-[1.5] m-auto`;
+const ICONS: Record<string, JSX.Element> = {
+  page: <FileText className={iconClassName} />,
+  project: <Briefcase className={iconClassName} />,
+  view: <Layers className={iconClassName} />,
+  module: <DiceIcon className={iconClassName} />,
+  cycle: <ContrastIcon className={iconClassName} />,
+  issue: <LayersIcon className={iconClassName} />,
+  folder: <FavoriteFolderIcon className={iconClassName} />,
+};
+
 export const FavoriteItem = observer(
   ({
     favoriteMap,
@@ -48,28 +68,18 @@ export const FavoriteItem = observer(
     const dragHandleRef = useRef<HTMLButtonElement | null>(null);
     const actionSectionRef = useRef<HTMLDivElement | null>(null);
 
-    const getIcon = () => {
-      const className = `flex-shrink-0 size-4 stroke-[1.5] m-auto`;
-
-      switch (favorite.entity_type) {
-        case "page":
-          return <FileText className={className} />;
-        case "project":
-          return <Briefcase className={className} />;
-        case "view":
-          return <Layers className={className} />;
-        case "module":
-          return <DiceIcon className={className} />;
-        case "cycle":
-          return <ContrastIcon className={className} />;
-        case "issue":
-          return <LayersIcon className={className} />;
-        case "folder":
-          return <FavoriteFolderIcon className={className} />;
-        default:
-          return <FileText />;
-      }
-    };
+    const getIcon = () => (
+      <>
+        <div className="hidden group-hover:block">{ICONS[favorite.entity_type] || <FileText />}</div>
+        <div className="block group-hover:hidden">
+          {favorite.entity_data?.logo_props?.in_use ? (
+            <Logo logo={favorite.entity_data?.logo_props} size={16} type="lucide" />
+          ) : (
+            ICONS[favorite.entity_type] || <FileText />
+          )}
+        </div>
+      </>
+    );
 
     const getLink = () => {
       switch (favorite.entity_type) {
@@ -133,7 +143,10 @@ export const FavoriteItem = observer(
       <div ref={elementRef} className="group/project-item">
         <SidebarNavItem
           key={favorite.id}
-          className={`${sidebarCollapsed ? "p-0 size-8 aspect-square justify-center mx-auto" : ""}`}
+          className={cn({
+            "bg-custom-sidebar-background-90": isMenuActive,
+            "p-0 size-8 aspect-square justify-center mx-auto": sidebarCollapsed,
+          })}
         >
           <div
             className={cn("flex justify-between items-center gap-1.5 py-[1px]", {
diff --git a/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx b/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
index 4dc0f40ec3a..d4a18fc402a 100644
--- a/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
+++ b/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
@@ -133,14 +133,16 @@ export const SidebarFavoritesMenu = observer(() => {
             <span onClick={() => toggleFavoriteMenu(!isFavoriteMenuOpen)} className="flex-1 text-start">
               YOUR FAVORITES
             </span>
-            <span className="flex gap-2 flex-shrink-0 opacity-0 pointer-events-none group-hover/workspace-button:opacity-100 group-hover/workspace-button:pointer-events-auto rounded p-0.5 ">
-              <FolderPlus
-                onClick={() => {
-                  setCreateNewFolder(true);
-                  !isFavoriteMenuOpen && toggleFavoriteMenu(!isFavoriteMenuOpen);
-                }}
-                className={cn("size-4 flex-shrink-0 text-custom-sidebar-text-400 transition-transform")}
-              />
+            <span className="flex flex-shrink-0 opacity-0 pointer-events-none group-hover/workspace-button:opacity-100 group-hover/workspace-button:pointer-events-auto rounded p-0.5 ">
+              <Tooltip tooltipHeading="Create folder" tooltipContent="">
+                <FolderPlus
+                  onClick={() => {
+                    setCreateNewFolder(true);
+                    !isFavoriteMenuOpen && toggleFavoriteMenu(!isFavoriteMenuOpen);
+                  }}
+                  className={cn("size-4 flex-shrink-0 text-custom-sidebar-text-400 transition-transform")}
+                />
+              </Tooltip>
               <ChevronRight
                 onClick={() => toggleFavoriteMenu(!isFavoriteMenuOpen)}
                 className={cn("size-4 flex-shrink-0 text-custom-sidebar-text-400 transition-transform", {
@@ -168,34 +170,42 @@ export const SidebarFavoritesMenu = observer(() => {
               static
             >
               {createNewFolder && <NewFavoriteFolder setCreateNewFolder={setCreateNewFolder} actionType="create" />}
-              {uniqBy(orderBy(Object.values(favoriteMap), "sequence", "desc"), "id")
-                .filter((fav) => !fav.parent)
-                .map((fav, index) => (
-                  <Tooltip
-                    key={fav.id}
-                    tooltipContent={fav.entity_data ? fav.entity_data.name : fav.name}
-                    position="right"
-                    className="ml-2"
-                    disabled={!sidebarCollapsed}
-                    isMobile={isMobile}
-                  >
-                    {fav.is_folder ? (
-                      <FavoriteFolder
-                        favorite={fav}
-                        isLastChild={index === favoriteIds.length - 1}
-                        handleRemoveFromFavorites={handleRemoveFromFavorites}
-                        handleRemoveFromFavoritesFolder={handleRemoveFromFavoritesFolder}
-                      />
-                    ) : (
-                      <FavoriteItem
-                        favorite={fav}
-                        handleRemoveFromFavorites={handleRemoveFromFavorites}
-                        handleRemoveFromFavoritesFolder={handleRemoveFromFavoritesFolder}
-                        favoriteMap={favoriteMap}
-                      />
-                    )}
-                  </Tooltip>
-                ))}
+              {Object.keys(favoriteMap).length === 0 ? (
+                <>
+                  {!sidebarCollapsed && (
+                    <span className="text-custom-text-400 text-xs text-center font-medium py-1">No favorites yet</span>
+                  )}
+                </>
+              ) : (
+                uniqBy(orderBy(Object.values(favoriteMap), "sequence", "desc"), "id")
+                  .filter((fav) => !fav.parent)
+                  .map((fav, index) => (
+                    <Tooltip
+                      key={fav.id}
+                      tooltipContent={fav.entity_data ? fav.entity_data.name : fav.name}
+                      position="right"
+                      className="ml-2"
+                      disabled={!sidebarCollapsed}
+                      isMobile={isMobile}
+                    >
+                      {fav.is_folder ? (
+                        <FavoriteFolder
+                          favorite={fav}
+                          isLastChild={index === favoriteIds.length - 1}
+                          handleRemoveFromFavorites={handleRemoveFromFavorites}
+                          handleRemoveFromFavoritesFolder={handleRemoveFromFavoritesFolder}
+                        />
+                      ) : (
+                        <FavoriteItem
+                          favorite={fav}
+                          handleRemoveFromFavorites={handleRemoveFromFavorites}
+                          handleRemoveFromFavoritesFolder={handleRemoveFromFavoritesFolder}
+                          favoriteMap={favoriteMap}
+                        />
+                      )}
+                    </Tooltip>
+                  ))
+              )}
             </Disclosure.Panel>
           )}
         </Transition>
diff --git a/web/core/components/workspace/sidebar/quick-actions.tsx b/web/core/components/workspace/sidebar/quick-actions.tsx
index 30f20e4da24..f0eca5cf091 100644
--- a/web/core/components/workspace/sidebar/quick-actions.tsx
+++ b/web/core/components/workspace/sidebar/quick-actions.tsx
@@ -108,7 +108,7 @@ export const SidebarQuickActions = observer(() => {
                 </button>
               )}
               {isDraftButtonOpen && (
-                <div className="absolute  mt-0 h-10 w-[220px] pt-2 z-10 top-8 left-0">
+                <div className="absolute  mt-0 h-10 w-[220px] pt-2 z-[16] top-8 left-0">
                   <div className="h-full w-full">
                     <button
                       onClick={() => setIsDraftIssueModalOpen(true)}