diff --git a/apps/web/core/components/navigation/top-nav-power-k.tsx b/apps/web/core/components/navigation/top-nav-power-k.tsx
index c623985e76e..b4e9bacb0cc 100644
--- a/apps/web/core/components/navigation/top-nav-power-k.tsx
+++ b/apps/web/core/components/navigation/top-nav-power-k.tsx
@@ -209,15 +209,15 @@ export const TopNavPowerK = observer(() => {
       >
         <div
           className={cn(
-            "flex items-center w-full h-7 p-2 rounded-lg bg-layer-1-active hover:bg-layer-1-hover border border-transparent transition-colors duration-200",
+            "flex items-center w-full h-7 p-2 rounded-lg bg-layer-2 border border-subtle-1 transition-colors duration-200",
             {
-              "border-subtle": isOpen,
+              "bg-layer-1": isOpen,
             }
           )}
           onClick={() => inputRef.current?.focus()}
           role="button"
         >
-          <SearchIcon className="shrink-0 size-3.5 text-tertiary mr-2" />
+          <SearchIcon className="shrink-0 size-3.5 text-placeholder mr-2" />
           <input
             ref={inputRef}
             type="text"
@@ -230,7 +230,7 @@ export const TopNavPowerK = observer(() => {
             onFocus={handleFocus}
             onKeyDown={handleKeyDown}
             placeholder="Search commands..."
-            className="flex-1 bg-transparent text-13 text-primary placeholder-custom-text-350 outline-none min-w-0"
+            className="flex-1 bg-transparent text-13 text-primary placeholder-text-placeholder outline-none min-w-0"
           />
           {searchTerm && (
             <button type="button" onClick={handleClear} className="shrink-0 ml-2">
diff --git a/apps/web/core/components/workspace/sidebar/favorites/favorite-items/common/favorite-item-wrapper.tsx b/apps/web/core/components/workspace/sidebar/favorites/favorite-items/common/favorite-item-wrapper.tsx
index c0751d4dda4..2bd28f3f286 100644
--- a/apps/web/core/components/workspace/sidebar/favorites/favorite-items/common/favorite-item-wrapper.tsx
+++ b/apps/web/core/components/workspace/sidebar/favorites/favorite-items/common/favorite-item-wrapper.tsx
@@ -15,7 +15,7 @@ export function FavoriteItemWrapper(props: Props) {
       <div
         ref={elementRef}
         className={cn(
-          "group/project-item cursor-pointer relative group flex items-center justify-between w-full gap-1.5 rounded-sm px-2 py-1 outline-none text-secondary hover:bg-surface-2 active:bg-surface-2",
+          "group/project-item relative w-full px-2 py-1.5 flex items-center rounded-md text-primary hover:bg-layer-transparent-hover",
           {
             "bg-surface-2": isMenuActive,
           }
diff --git a/apps/web/core/components/workspace/sidebar/favorites/favorite-items/root.tsx b/apps/web/core/components/workspace/sidebar/favorites/favorite-items/root.tsx
index ac12b9215e2..733367663a7 100644
--- a/apps/web/core/components/workspace/sidebar/favorites/favorite-items/root.tsx
+++ b/apps/web/core/components/workspace/sidebar/favorites/favorite-items/root.tsx
@@ -120,7 +120,7 @@ export const FavoriteRoot = observer(function FavoriteRoot(props: Props) {
 
   return (
     <>
-      <DropIndicator isVisible={instruction === "reorder-above"} />
+      {isDragging && <DropIndicator isVisible={instruction === "reorder-above"} />}
       <FavoriteItemWrapper elementRef={elementRef} isMenuActive={isMenuActive}>
         <FavoriteItemDragHandle isDragging={isDragging} sort_order={favorite.sort_order} />
         <FavoriteItemTitle href={itemLink} icon={itemIcon} title={itemTitle} />
diff --git a/apps/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx b/apps/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
index eae6cbddfba..43262fac8d5 100644
--- a/apps/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
+++ b/apps/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
@@ -178,7 +178,7 @@ export const SidebarFavoritesMenu = observer(function SidebarFavoritesMenu() {
         <div
           ref={elementRef}
           className={cn(
-            "group/favorites-button w-full flex items-center justify-between px-2 py-1.5 rounded-sm text-placeholder hover:bg-surface-2"
+            "group/favorites-button w-full flex items-center justify-between px-2 py-1.5 rounded-sm text-placeholder hover:bg-layer-transparent-hover"
           )}
         >
           <Disclosure.Button
@@ -203,7 +203,7 @@ export const SidebarFavoritesMenu = observer(function SidebarFavoritesMenu() {
             <Tooltip tooltipHeading={t("create_folder")} tooltipContent="">
               <button
                 type="button"
-                className="p-0.5 rounded-sm hover:bg-layer-1 flex-shrink-0 grid place-items-center"
+                className="p-0.5 rounded-sm hover:bg-layer-transparent-hover flex-shrink-0 grid place-items-center"
                 onClick={() => {
                   setCreateNewFolder(true);
                   if (!isFavoriteMenuOpen) toggleFavoriteMenu(!isFavoriteMenuOpen);
@@ -216,7 +216,7 @@ export const SidebarFavoritesMenu = observer(function SidebarFavoritesMenu() {
             <Disclosure.Button
               as="button"
               type="button"
-              className="p-0.5 rounded-sm hover:bg-layer-1 flex-shrink-0 grid place-items-center"
+              className="p-0.5 rounded-sm hover:bg-layer-transparent-hover flex-shrink-0 grid place-items-center"
               onClick={() => toggleFavoriteMenu(!isFavoriteMenuOpen)}
               aria-label={t(
                 isFavoriteMenuOpen