diff --git a/app/client/packages/design-system/ads/src/List/List.stories.tsx b/app/client/packages/design-system/ads/src/List/List.stories.tsx
index 160b027f7d8..cd1acd256d6 100644
--- a/app/client/packages/design-system/ads/src/List/List.stories.tsx
+++ b/app/client/packages/design-system/ads/src/List/List.stories.tsx
@@ -1,5 +1,5 @@
 import React from "react";
-import { List, ListItem, Icon } from "@appsmith/ads";
+import { List, ListItem, Icon, Button } from "@appsmith/ads";
 import type { StoryObj } from "@storybook/react";
 import type { ListItemProps, ListProps } from "@appsmith/ads";
 
@@ -79,15 +79,21 @@ const ListItemArgTypes = {
       },
     },
   },
-  endIcon: {
-    control: "text",
-    description: "The icon to display at the end of the list item",
+  rightControl: {
+    description: "The control to display at the end of the list item",
     table: {
       type: {
-        summary: "string",
+        summary: "ReactNode",
       },
     },
   },
+  rightControlVisibility: {
+    description:
+      "`always` type will show the right control always. `hover` type will show the right control only when the list item is hovered.",
+    control: "radio",
+    options: ["always", "hover"],
+    defaultValue: "always",
+  },
   description: {
     control: "text",
     description: "Description text to be shown alongside the title",
@@ -140,11 +146,12 @@ const ListItemArgTypes = {
       },
     },
   },
-  onEndIconClick: {
-    description: "callback for when the end icon is clicked",
+  customTitleComponent: {
+    description:
+      "A custom title component for the list item to use input component for name editing",
     table: {
       type: {
-        summary: "() => void",
+        summary: "ReactNode",
       },
     },
   },
@@ -163,7 +170,7 @@ ListItemLargeStory.args = {
   description: "inline",
   descriptionType: "inline",
   size: "lg",
-  endIcon: "add-more",
+  rightControl: <Icon name="add-more" size={"md"} />,
 };
 
 export const ListItemErrorStory = ListItemTemplate.bind({}) as StoryObj;
@@ -215,10 +222,12 @@ ListItemOverflowStory.args = {
   title: "Action item 1 Action item 1 Action item 1 Action item 1",
 };
 
-export const ListItemEndIconStory = ListItemTemplate.bind({}) as StoryObj;
-ListItemEndIconStory.storyName = "List item end icon";
-ListItemEndIconStory.argTypes = ListItemArgTypes;
-ListItemEndIconStory.args = {
+export const ListItemRightControlStory = ListItemTemplate.bind({}) as StoryObj;
+ListItemRightControlStory.storyName = "List item right control";
+ListItemRightControlStory.argTypes = ListItemArgTypes;
+ListItemRightControlStory.args = {
   title: "Action item 1",
-  endIcon: "add-more",
+  rightControl: (
+    <Button isIconButton kind="tertiary" size={"sm"} startIcon="add-more" />
+  ),
 };
diff --git a/app/client/packages/design-system/ads/src/List/List.styles.tsx b/app/client/packages/design-system/ads/src/List/List.styles.tsx
index 65bde433973..38be7eb1fb1 100644
--- a/app/client/packages/design-system/ads/src/List/List.styles.tsx
+++ b/app/client/packages/design-system/ads/src/List/List.styles.tsx
@@ -36,14 +36,49 @@ export const StyledList = styled.div`
   gap: var(--ads-v2-spaces-2);
 `;
 
-export const Wrapper = styled.div`
+export const Wrapper = styled.div<{
+  rightControlVisibility?: "hover" | "always";
+}>`
   display: flex;
   width: 100%;
   align-items: center;
-  gap: var(--ads-v2-spaces-3);
   cursor: pointer;
   box-sizing: border-box;
   position: relative;
+  border-radius: var(--ads-v2-border-radius);
+  min-height: 32px;
+
+  ${(props) =>
+    props.rightControlVisibility === "hover" &&
+    `
+    ${RightControlWrapper} { display: none; }
+    &:hover ${RightControlWrapper} { display: block; }`}
+
+  &:hover {
+    background-color: var(--ads-v2-colors-content-surface-hover-bg);
+  }
+
+  &:active {
+    background-color: var(--ads-v2-colors-content-surface-active-bg);
+  }
+
+  &[data-selected="true"] {
+    background-color: var(--ads-v2-colors-content-surface-active-bg);
+  }
+
+  /* disabled style */
+  &[data-disabled="true"] {
+    cursor: not-allowed;
+    opacity: var(--ads-v2-opacity-disabled);
+    background-color: var(--ads-v2-colors-content-surface-default-bg);
+  }
+
+  /* Focus styles */
+  &:focus-visible {
+    outline: var(--ads-v2-border-width-outline) solid
+      var(--ads-v2-color-outline);
+    outline-offset: var(--ads-v2-offset-outline);
+  }
 `;
 
 export const TooltipTextWrapper = styled.div`
@@ -56,13 +91,6 @@ export const ContentWrapper = styled.div`
   gap: var(--ads-v2-spaces-3);
 `;
 
-export const ContentTextWrapper = styled.div`
-  display: flex;
-  gap: var(--ads-v2-spaces-3);
-  flex: 1;
-  min-width: 0;
-`;
-
 export const DescriptionWrapper = styled.div`
   flex-direction: column;
   min-width: 0;
@@ -79,14 +107,17 @@ export const InlineDescriptionWrapper = styled.div`
   flex: 1;
 `;
 
-export const EndIconWrapper = styled.div`
-  position: absolute;
-  right: var(--ads-v2-spaces-3);
+export const RightControlWrapper = styled.div`
+  height: 100%;
+
+  button {
+    height: 100% !important;
+    width: 32px;
+  }
 `;
 
 export const StyledListItem = styled.div<{
   size: ListSizes;
-  endIcon?: string;
   isBlockDescription: boolean;
 }>`
   ${Variables};
@@ -94,15 +125,14 @@ export const StyledListItem = styled.div<{
   display: flex;
   width: 100%;
   align-items: center;
-  border-radius: var(--ads-v2-border-radius);
-  padding: var(--ads-v2-spaces-3);
   box-sizing: border-box;
-  // 40px is the offset to make it look like the end icon is part of this div
-  ${(props) => !!props.endIcon && `padding: 8px 40px 8px 8px;`}}
+  padding: var(--ads-v2-spaces-2) var(--ads-v2-spaces-2) var(--ads-v2-spaces-2)
+    var(--ads-v2-spaces-3);
+  gap: var(--ads-v2-spaces-3);
+  overflow: hidden;
 
   ${({ size }) => Sizes[size]}
 
-
   & .${ListItemTextOverflowClassName} {
     overflow: hidden;
     white-space: nowrap;
@@ -126,30 +156,6 @@ export const StyledListItem = styled.div<{
 
   & .${ListItemIDescClassName} {
     font-size: var(--listitem-idescription-font-size);
-  }
-
-  &:hover {
-    background-color: var(--ads-v2-colors-content-surface-hover-bg);
-  }
-
-  &:active {
-    background-color: var(--ads-v2-colors-content-surface-active-bg);
-  }
-
-  &[data-selected="true"] {
-    background-color: var(--ads-v2-colors-content-surface-active-bg);
-  }
-
-  /* disabled style */
-  &[data-disabled="true"] {
-    cursor: not-allowed;
-    opacity: var(--ads-v2-opacity-disabled);
-  }
-
-  /* Focus styles */
-  &:focus-visible {
-    outline: var(--ads-v2-border-width-outline) solid
-      var(--ads-v2-color-outline);
-    outline-offset: var(--ads-v2-offset-outline);
+    line-height: 16px;
   }
 `;
diff --git a/app/client/packages/design-system/ads/src/List/List.tsx b/app/client/packages/design-system/ads/src/List/List.tsx
index c4761a73972..8efbd293ce5 100644
--- a/app/client/packages/design-system/ads/src/List/List.tsx
+++ b/app/client/packages/design-system/ads/src/List/List.tsx
@@ -3,10 +3,9 @@ import clsx from "classnames";
 
 import type { ListItemProps, ListProps } from "./List.types";
 import {
-  ContentTextWrapper,
   DescriptionWrapper,
-  EndIconWrapper,
   InlineDescriptionWrapper,
+  RightControlWrapper,
   StyledList,
   StyledListItem,
   TooltipTextWrapper,
@@ -14,7 +13,6 @@ import {
 } from "./List.styles";
 import type { TextProps } from "../Text";
 import { Text } from "../Text";
-import { Button } from "../Button";
 import { Tooltip } from "../Tooltip";
 import {
   ListClassName,
@@ -85,8 +83,9 @@ function ListItem(props: ListItemProps) {
   const {
     description,
     descriptionType = "inline",
-    endIcon,
     hasError,
+    rightControl,
+    rightControlVisibility = "always",
     size = "md",
     startIcon,
     title,
@@ -104,27 +103,6 @@ function ListItem(props: ListItemProps) {
     }
   };
 
-  const endIconhandleKeyDown = (e: React.KeyboardEvent) => {
-    e.stopPropagation();
-
-    if (!props.isDisabled && props.onEndIconClick) {
-      switch (e.key) {
-        case "Enter":
-        case " ":
-          props.onEndIconClick();
-          break;
-      }
-    }
-  };
-
-  const endIconOnClick = (e: React.MouseEvent) => {
-    e.stopPropagation();
-
-    if (!props.isDisabled && props.onEndIconClick) {
-      props.onEndIconClick();
-    }
-  };
-
   const handleOnClick = () => {
     if (!props.isDisabled && props.onClick) {
       props.onClick();
@@ -132,20 +110,24 @@ function ListItem(props: ListItemProps) {
   };
 
   return (
-    <Wrapper className={clsx(ListItemWrapperClassName, props.wrapperClassName)}>
+    <Wrapper
+      className={clsx(ListItemWrapperClassName, props.wrapperClassName)}
+      data-disabled={props.isDisabled || false}
+      data-selected={props.isSelected}
+      rightControlVisibility={rightControlVisibility}
+      tabIndex={props.isDisabled ? -1 : 0}
+    >
       <StyledListItem
         className={clsx(ListItemClassName, props.className)}
-        data-disabled={props.isDisabled || false}
-        data-selected={props.isSelected}
-        endIcon={props.endIcon}
         isBlockDescription={isBlockDescription}
         onClick={handleOnClick}
         onKeyDown={listItemhandleKeyDown}
         size={size}
-        tabIndex={props.isDisabled ? -1 : 0}
       >
-        <ContentTextWrapper>
-          {startIcon}
+        {startIcon}
+        {props.customTitleComponent ? (
+          props.customTitleComponent
+        ) : (
           <InlineDescriptionWrapper>
             <DescriptionWrapper>
               <TextWithTooltip
@@ -175,20 +157,10 @@ function ListItem(props: ListItemProps) {
               </TextWithTooltip>
             )}
           </InlineDescriptionWrapper>
-        </ContentTextWrapper>
+        )}
       </StyledListItem>
-      {endIcon && (
-        <EndIconWrapper>
-          <Button
-            isDisabled={props.isDisabled}
-            isIconButton
-            kind="tertiary"
-            onClick={endIconOnClick}
-            onKeyDown={endIconhandleKeyDown}
-            size={"sm"}
-            startIcon={endIcon}
-          />
-        </EndIconWrapper>
+      {rightControl && (
+        <RightControlWrapper>{rightControl}</RightControlWrapper>
       )}
     </Wrapper>
   );
diff --git a/app/client/packages/design-system/ads/src/List/List.types.tsx b/app/client/packages/design-system/ads/src/List/List.types.tsx
index d522b287e70..64c92247014 100644
--- a/app/client/packages/design-system/ads/src/List/List.types.tsx
+++ b/app/client/packages/design-system/ads/src/List/List.types.tsx
@@ -6,10 +6,10 @@ export type ListSizes = Extract<Sizes, "md" | "lg">;
 export interface ListItemProps {
   /** The icon to display before the list item title. */
   startIcon?: ReactNode;
-  /** The icon to display at the end. Pass name of the icon from remix-icon library(eg: home-2-line) or an svg icon. */
-  endIcon?: string;
-  /** callback for when the endIcon is clicked */
-  onEndIconClick?: () => void;
+  /** The control to display at the end. */
+  rightControl?: ReactNode;
+  /**  */
+  rightControlVisibility?: "hover" | "always";
   /** callback for when the list item is clicked */
   onClick: () => void;
   /** Whether the list item is disabled. */
@@ -23,17 +23,19 @@ export interface ListItemProps {
   /** The title/label of the list item */
   title: string;
   /** Description text to be shown alongside the title */
-  description: string;
+  description?: string;
   /** `inline` type will show the description beside the title. `block` type will show the description
    * below the title.
    */
-  descriptionType: "inline" | "block";
+  descriptionType?: "inline" | "block";
   /** class names for the list item */
   className?: string;
   /** class names for the wrapper */
   wrapperClassName?: string;
   /** id for the list item */
   id?: string;
+  /** customTitleComponent for the list item to use input component for name editing */
+  customTitleComponent?: ReactNode | ReactNode[];
 }
 
 export interface ListProps {
diff --git a/app/client/src/pages/Editor/Explorer/Actions/ActionEntity.tsx b/app/client/src/pages/Editor/Explorer/Actions/ActionEntity.tsx
index 69f2c1130d3..f4eae18d77e 100644
--- a/app/client/src/pages/Editor/Explorer/Actions/ActionEntity.tsx
+++ b/app/client/src/pages/Editor/Explorer/Actions/ActionEntity.tsx
@@ -1,6 +1,6 @@
 import React, { memo, useCallback, useMemo } from "react";
 import { useSelector } from "react-redux";
-import Entity, { EntityClassNames } from "../Entity";
+import { EntityClassNames } from "../Entity";
 import ActionEntityContextMenu from "./ActionEntityContextMenu";
 import history, { NavigationMethod } from "utils/history";
 import {
@@ -21,17 +21,18 @@ import {
 } from "ee/utils/BusinessFeatures/permissionPageHelpers";
 import { useFeatureFlag } from "utils/hooks/useFeatureFlag";
 import { FEATURE_FLAG } from "ee/entities/FeatureFlag";
-import { saveActionNameBasedOnParentEntity } from "ee/actions/helpers";
+// import { saveActionNameBasedOnParentEntity } from "ee/actions/helpers";
 import type { ActionParentEntityTypeInterface } from "ee/entities/Engine/actionHelpers";
 import { convertToBaseParentEntityIdSelector } from "selectors/pageListSelectors";
+import { ListItem } from "@appsmith/ads";
 
-const getUpdateActionNameReduxAction = (
-  id: string,
-  name: string,
-  parentEntityType: ActionParentEntityTypeInterface,
-) => {
-  return saveActionNameBasedOnParentEntity(id, name, parentEntityType);
-};
+// const getUpdateActionNameReduxAction = (
+//   id: string,
+//   name: string,
+//   parentEntityType: ActionParentEntityTypeInterface,
+// ) => {
+//   return saveActionNameBasedOnParentEntity(id, name, parentEntityType);
+// };
 
 interface ExplorerActionEntityProps {
   step: number;
@@ -109,21 +110,14 @@ export const ExplorerActionEntity = memo((props: ExplorerActionEntityProps) => {
   );
 
   return (
-    <Entity
-      action={switchToAction}
-      active={props.isActive}
-      canEditEntityName={canManageAction}
-      className="action t--action-entity"
-      contextMenu={contextMenu}
-      entityId={action.id}
-      icon={icon}
-      key={action.id}
-      name={action.name}
-      searchKeyword={props.searchKeyword}
-      step={props.step}
-      updateEntityName={(id, name) =>
-        getUpdateActionNameReduxAction(id, name, props.parentEntityType)
-      }
+    <ListItem
+      isSelected={props.isActive}
+      onClick={switchToAction}
+      rightControl={contextMenu}
+      rightControlVisibility="hover"
+      startIcon={icon}
+      title={action.name}
+      wrapperClassName="action t--action-entity"
     />
   );
 });
diff --git a/app/client/src/pages/Editor/Explorer/ExplorerIcons.tsx b/app/client/src/pages/Editor/Explorer/ExplorerIcons.tsx
index fe87497930b..589a2667fcd 100644
--- a/app/client/src/pages/Editor/Explorer/ExplorerIcons.tsx
+++ b/app/client/src/pages/Editor/Explorer/ExplorerIcons.tsx
@@ -266,8 +266,8 @@ export { EntityIcon };
 // fontSize is set to 56% by default.
 export function ApiMethodIcon(
   type: keyof typeof HTTP_METHOD,
-  height = "18px",
-  width = "36px",
+  height = "16px",
+  width = "34px",
   fontSize = 52,
 ) {
   return (