diff --git a/.github/changes-filter.yaml b/.github/changes-filter.yaml
index 04cb094a2..255ff8b43 100644
--- a/.github/changes-filter.yaml
+++ b/.github/changes-filter.yaml
@@ -21,6 +21,8 @@ docs:
 starter-projects:
   - "src/backend/base/langflow/initial_setup/**"
   - "src/backend/base/langflow/components/**"
+  - "src/backend/base/langflow/services/**"
+  - "src/backend/base/langflow/custom/**"
   - "src/frontend/src/pages/MainPage/**"
   - "src/frontend/src/utils/reactflowUtils.ts"
   - "src/frontend/tests/extended/features/**"
diff --git a/src/frontend/src/components/core/folderSidebarComponent/components/sideBarFolderButtons/components/select-options.tsx b/src/frontend/src/components/core/folderSidebarComponent/components/sideBarFolderButtons/components/select-options.tsx
index 32061becc..60c356e2b 100644
--- a/src/frontend/src/components/core/folderSidebarComponent/components/sideBarFolderButtons/components/select-options.tsx
+++ b/src/frontend/src/components/core/folderSidebarComponent/components/sideBarFolderButtons/components/select-options.tsx
@@ -27,52 +27,54 @@ export const SelectOptions = ({
   checkPathName: (folderId: string) => boolean;
 }) => {
   return (
-    <Select
-      onValueChange={(value) =>
-        handleSelectChange(
-          value,
-          item,
-          handleDeleteFolder,
-          handleDownloadFolder,
-          handleSelectFolderToRename,
-        )
-      }
-      value=""
-    >
-      <ShadTooltip content="Options" side="right" styleClasses="z-50">
-        <SelectTrigger
-          className={cn(
-            "w-fit p-0",
-            checkPathName(item.id!) ? "block" : "hidden",
-          )}
-          id={`options-trigger-${item.name}`}
-          data-testid="more-options-button"
-        >
-          <IconComponent
-            name="MoreHorizontal"
-            className="w-4 stroke-[1.5] px-0 text-muted-foreground group-hover/menu-button:text-foreground"
-          />
-        </SelectTrigger>
-      </ShadTooltip>
-      <SelectContent align="end" alignOffset={-16} position="popper">
-        {item.name !== "My Projects" && (
-          <SelectItem
-            id="rename-button"
-            value="rename"
-            data-testid="btn-rename-folder"
+    <div>
+      <Select
+        onValueChange={(value) =>
+          handleSelectChange(
+            value,
+            item,
+            handleDeleteFolder,
+            handleDownloadFolder,
+            handleSelectFolderToRename,
+          )
+        }
+        value=""
+      >
+        <ShadTooltip content="Options" side="right" styleClasses="z-50">
+          <SelectTrigger
+            className="w-fit"
+            id={`options-trigger-${item.name}`}
+            data-testid="more-options-button"
           >
-            <FolderSelectItem name="Rename" iconName="SquarePen" />
+            <IconComponent
+              name={"MoreHorizontal"}
+              className={cn(
+                `w-4 stroke-[1.5] px-0 text-muted-foreground group-hover/menu-button:block group-hover/menu-button:text-foreground`,
+                checkPathName(item.id!) ? "block" : "hidden",
+              )}
+            />
+          </SelectTrigger>
+        </ShadTooltip>
+        <SelectContent align="end" alignOffset={-16} position="popper">
+          {item.name !== "My Projects" && (
+            <SelectItem
+              id="rename-button"
+              value="rename"
+              data-testid="btn-rename-folder"
+            >
+              <FolderSelectItem name="Rename" iconName="SquarePen" />
+            </SelectItem>
+          )}
+          <SelectItem value="download" data-testid="btn-download-folder">
+            <FolderSelectItem name="Download Content" iconName="Download" />
           </SelectItem>
-        )}
-        <SelectItem value="download" data-testid="btn-download-folder">
-          <FolderSelectItem name="Download Content" iconName="Download" />
-        </SelectItem>
-        {index > 0 && (
-          <SelectItem value="delete" data-testid="btn-delete-folder">
-            <FolderSelectItem name="Delete" iconName="Trash2" />
-          </SelectItem>
-        )}
-      </SelectContent>
-    </Select>
+          {index > 0 && (
+            <SelectItem value="delete" data-testid="btn-delete-folder">
+              <FolderSelectItem name="Delete" iconName="Trash2" />
+            </SelectItem>
+          )}
+        </SelectContent>
+      </Select>
+    </div>
   );
 };
diff --git a/src/frontend/src/components/core/folderSidebarComponent/components/sideBarFolderButtons/index.tsx b/src/frontend/src/components/core/folderSidebarComponent/components/sideBarFolderButtons/index.tsx
index daa34d60b..c72575ff0 100644
--- a/src/frontend/src/components/core/folderSidebarComponent/components/sideBarFolderButtons/index.tsx
+++ b/src/frontend/src/components/core/folderSidebarComponent/components/sideBarFolderButtons/index.tsx
@@ -28,7 +28,7 @@ import useAlertStore from "../../../../../stores/alertStore";
 import useFlowsManagerStore from "../../../../../stores/flowsManagerStore";
 import { useFolderStore } from "../../../../../stores/foldersStore";
 import { handleKeyDown } from "../../../../../utils/reactflowUtils";
-import { cn, getRandomKeyByssmm } from "../../../../../utils/utils";
+import { cn } from "../../../../../utils/utils";
 import useFileDrop from "../../hooks/use-on-file-drop";
 import { SidebarFolderSkeleton } from "../sidebarFolderSkeleton";
 import { HeaderButtons } from "./components/header-buttons";
@@ -333,6 +333,8 @@ const SideBarFoldersButtonsComponent = ({
     }
   };
 
+  const [hoveredFolderId, setHoveredFolderId] = useState<string | null>(null);
+
   return (
     <Sidebar
       collapsible={isMobile ? "offcanvas" : "none"}
@@ -356,7 +358,12 @@ const SideBarFoldersButtonsComponent = ({
                     (folder) => folder.name === item.name,
                   )[0];
                   return (
-                    <SidebarMenuItem key={getRandomKeyByssmm()}>
+                    <SidebarMenuItem
+                      key={index}
+                      className="group/menu-button"
+                      onMouseEnter={() => setHoveredFolderId(item.id!)}
+                      onMouseLeave={() => setHoveredFolderId(null)}
+                    >
                       <div className="relative flex w-full">
                         <SidebarMenuButton
                           size="md"
@@ -369,7 +376,8 @@ const SideBarFoldersButtonsComponent = ({
                           isActive={checkPathName(item.id!)}
                           onClick={() => handleChangeFolder!(item.id!)}
                           className={cn(
-                            "group/menu-button flex-grow pr-8", // Added padding-right to make room for options
+                            "flex-grow pr-8",
+                            hoveredFolderId === item.id && "bg-accent",
                             checkHoveringFolder(item.id!),
                           )}
                         >
@@ -401,7 +409,7 @@ const SideBarFoldersButtonsComponent = ({
                         </SidebarMenuButton>
                         <div
                           className="absolute right-2 top-[0.45rem] flex items-center hover:text-foreground"
-                          onClick={(e) => e.stopPropagation()} // Prevent click from triggering parent button
+                          onClick={(e) => e.stopPropagation()}
                         >
                           <SelectOptions
                             item={item}