diff --git a/apps/api/plane/app/serializers/project.py b/apps/api/plane/app/serializers/project.py
index 01569cbc96a..d7c458d40d1 100644
--- a/apps/api/plane/app/serializers/project.py
+++ b/apps/api/plane/app/serializers/project.py
@@ -3,6 +3,7 @@
 
 # Module imports
 from .base import BaseSerializer, DynamicBaseSerializer
+from django.db.models import Max
 from plane.app.serializers.workspace import WorkspaceLiteSerializer
 from plane.app.serializers.user import UserLiteSerializer, UserAdminLiteSerializer
 from plane.db.models import (
@@ -12,6 +13,7 @@
     ProjectIdentifier,
     DeployBoard,
     ProjectPublicMember,
+    IssueSequence
 )
 from plane.utils.content_validator import (
     validate_html_content,
@@ -105,6 +107,7 @@ class ProjectListSerializer(DynamicBaseSerializer):
     members = serializers.SerializerMethodField()
     cover_image_url = serializers.CharField(read_only=True)
     inbox_view = serializers.BooleanField(read_only=True, source="intake_view")
+    next_work_item_sequence = serializers.SerializerMethodField()
 
     def get_members(self, obj):
         project_members = getattr(obj, "members_list", None)
@@ -113,6 +116,11 @@ def get_members(self, obj):
             return [member.member_id for member in project_members if member.is_active and not member.member.is_bot]
         return []
 
+    def get_next_work_item_sequence(self, obj):
+        """Get the next sequence ID that will be assigned to a new issue"""
+        max_sequence = IssueSequence.objects.filter(project_id=obj.id).aggregate(max_seq=Max("sequence"))["max_seq"]
+        return (max_sequence + 1) if max_sequence else 1
+
     class Meta:
         model = Project
         fields = "__all__"
diff --git a/apps/web/core/components/issues/issue-layouts/list/block.tsx b/apps/web/core/components/issues/issue-layouts/list/block.tsx
index 1b7cae0fd7e..b8352c51442 100644
--- a/apps/web/core/components/issues/issue-layouts/list/block.tsx
+++ b/apps/web/core/components/issues/issue-layouts/list/block.tsx
@@ -28,6 +28,7 @@ import { IssueIdentifier } from "@/plane-web/components/issues/issue-details/iss
 import { IssueStats } from "@/plane-web/components/issues/issue-layouts/issue-stats";
 // types
 import { WithDisplayPropertiesHOC } from "../properties/with-display-properties-HOC";
+import { calculateIdentifierWidth } from "../utils";
 import type { TRenderQuickActions } from "./list-view-types";
 
 interface IssueBlockProps {
@@ -76,7 +77,7 @@ export const IssueBlock = observer(function IssueBlock(props: IssueBlockProps) {
   const projectId = routerProjectId?.toString();
   // hooks
   const { sidebarCollapsed: isSidebarCollapsed } = useAppTheme();
-  const { getProjectIdentifierById } = useProject();
+  const { getProjectIdentifierById, currentProjectNextSequenceId } = useProject();
   const {
     getIsIssuePeeked,
     peekIssue,
@@ -150,8 +151,12 @@ export const IssueBlock = observer(function IssueBlock(props: IssueBlockProps) {
     }
   };
 
-  //TODO: add better logic. This is to have a min width for ID/Key based on the length of project identifier
-  const keyMinWidth = displayProperties?.key ? (projectIdentifier?.length ?? 0) * 7 : 0;
+  // Calculate width for: projectIdentifier + "-" + dynamic sequence number digits
+  // Use next_work_item_sequence from backend (static value from project endpoint)
+  const maxSequenceId = currentProjectNextSequenceId ?? 1;
+  const keyMinWidth = displayProperties?.key
+    ? calculateIdentifierWidth(projectIdentifier?.length ?? 0, maxSequenceId)
+    : 0;
 
   const workItemLink = generateWorkItemLink({
     workspaceSlug,
diff --git a/apps/web/core/components/issues/issue-layouts/utils.tsx b/apps/web/core/components/issues/issue-layouts/utils.tsx
index 524af27da27..564767f3b92 100644
--- a/apps/web/core/components/issues/issue-layouts/utils.tsx
+++ b/apps/web/core/components/issues/issue-layouts/utils.tsx
@@ -748,3 +748,18 @@ export const isFiltersApplied = (filters: IIssueFilterOptions): boolean =>
     if (Array.isArray(value)) return value.length > 0;
     return value !== undefined && value !== null && value !== "";
   });
+
+/**
+ * Calculates the minimum width needed for issue identifiers in list layouts
+ * @param projectIdentifierLength - Length of the project identifier (e.g., "PROJ" = 4)
+ * @param maxSequenceId - Maximum sequence ID in the project (e.g., 1234)
+ * @returns Width in pixels needed to display the identifier
+ * 
+ * @example
+ * // For "PROJ-1234"
+ * calculateIdentifierWidth(4, 1234) // Returns width for "PROJ" + "-" + "1234"
+ */
+export const calculateIdentifierWidth = (projectIdentifierLength: number, maxSequenceId: number): number => {
+  const sequenceDigits = Math.max(1, Math.floor(Math.log10(maxSequenceId)) + 1);
+  return projectIdentifierLength * 7 + 7 + sequenceDigits * 7; // project identifier chars + dash + sequence digits
+};
diff --git a/apps/web/core/store/project/project.store.ts b/apps/web/core/store/project/project.store.ts
index 3dce91b05a8..422fac379fa 100644
--- a/apps/web/core/store/project/project.store.ts
+++ b/apps/web/core/store/project/project.store.ts
@@ -30,6 +30,7 @@ export interface IProjectStore {
   joinedProjectIds: string[];
   favoriteProjectIds: string[];
   currentProjectDetails: TProject | undefined;
+  currentProjectNextSequenceId: number | undefined;
   // actions
   getProjectById: (projectId: string | undefined | null) => TProject | undefined;
   getPartialProjectById: (projectId: string | undefined | null) => TPartialProject | undefined;
@@ -107,6 +108,7 @@ export class ProjectStore implements IProjectStore {
       currentProjectDetails: computed,
       joinedProjectIds: computed,
       favoriteProjectIds: computed,
+      currentProjectNextSequenceId: computed,
       // helper actions
       processProjectAfterCreation: action,
       // fetch actions
@@ -216,6 +218,15 @@ export class ProjectStore implements IProjectStore {
     return this.projectMap?.[this.rootStore.router.projectId];
   }
 
+  /**
+   * Returns the next sequence ID for the current project
+   * Used for calculating identifier width in list layouts
+   */
+  get currentProjectNextSequenceId() {
+    if (!this.rootStore.router.projectId) return undefined;
+    return this.currentProjectDetails?.next_work_item_sequence;
+  }
+
   /**
    * Returns joined project IDs belong to the current workspace
    */
diff --git a/packages/types/src/project/projects.ts b/packages/types/src/project/projects.ts
index aa4d1bcba0d..9da12b57033 100644
--- a/packages/types/src/project/projects.ts
+++ b/packages/types/src/project/projects.ts
@@ -51,6 +51,7 @@ export interface IProject extends IPartialProject {
   is_favorite?: boolean;
   members?: string[];
   timezone?: string;
+  next_work_item_sequence?: number;
 }
 
 export type TProjectAnalyticsCountParams = {