diff --git a/apps/sim/app/workspace/[workspaceId]/home/components/mothership-view/components/resource-registry/resource-registry.tsx b/apps/sim/app/workspace/[workspaceId]/home/components/mothership-view/components/resource-registry/resource-registry.tsx
index bf5c3029d3d..4b545dc298b 100644
--- a/apps/sim/app/workspace/[workspaceId]/home/components/mothership-view/components/resource-registry/resource-registry.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/home/components/mothership-view/components/resource-registry/resource-registry.tsx
@@ -52,7 +52,7 @@ function WorkflowDropdownItem({ item }: DropdownItemRenderProps) {
   return (
     <>
       <div
-        className='mr-[0px] h-[14px] w-[14px] flex-shrink-0 rounded-[3px] border-[2px]'
+        className='h-[14px] w-[14px] flex-shrink-0 rounded-[3px] border-[2px]'
         style={{
           backgroundColor: color,
           borderColor: `${color}60`,
@@ -72,7 +72,16 @@ function FileDropdownItem({ item }: DropdownItemRenderProps) {
   const DocIcon = getDocumentIcon('', item.name)
   return (
     <>
-      <DocIcon className='mr-2 h-[14px] w-[14px] text-[var(--text-icon)]' />
+      <DocIcon className='h-[14px] w-[14px] flex-shrink-0 text-[var(--text-icon)]' />
+      <span className='truncate'>{item.name}</span>
+    </>
+  )
+}
+
+function IconDropdownItem({ item, icon: Icon }: DropdownItemRenderProps & { icon: ElementType }) {
+  return (
+    <>
+      <Icon className='h-[14px] w-[14px] flex-shrink-0 text-[var(--text-icon)]' />
       <span className='truncate'>{item.name}</span>
     </>
   )
@@ -104,7 +113,7 @@ export const RESOURCE_REGISTRY: Record<MothershipResourceType, ResourceTypeConfi
     renderTabIcon: (_resource, className) => (
       <TableIcon className={cn(className, 'text-[var(--text-icon)]')} />
     ),
-    renderDropdownItem: (props) => <DefaultDropdownItem {...props} />,
+    renderDropdownItem: (props) => <IconDropdownItem {...props} icon={TableIcon} />,
   },
   file: {
     type: 'file',
@@ -123,7 +132,7 @@ export const RESOURCE_REGISTRY: Record<MothershipResourceType, ResourceTypeConfi
     renderTabIcon: (_resource, className) => (
       <Database className={cn(className, 'text-[var(--text-icon)]')} />
     ),
-    renderDropdownItem: (props) => <DefaultDropdownItem {...props} />,
+    renderDropdownItem: (props) => <IconDropdownItem {...props} icon={Database} />,
   },
 } as const
 
diff --git a/apps/sim/app/workspace/[workspaceId]/home/components/user-input/components/constants.ts b/apps/sim/app/workspace/[workspaceId]/home/components/user-input/components/constants.ts
index dc6fa0aab58..93c3d79fa39 100644
--- a/apps/sim/app/workspace/[workspaceId]/home/components/user-input/components/constants.ts
+++ b/apps/sim/app/workspace/[workspaceId]/home/components/user-input/components/constants.ts
@@ -34,7 +34,7 @@ export type WindowWithSpeech = Window & {
 }
 
 export interface PlusMenuHandle {
-  open: () => void
+  open: (anchor?: { left: number; top: number }) => void
 }
 
 export const TEXTAREA_BASE_CLASSES = cn(
diff --git a/apps/sim/app/workspace/[workspaceId]/home/components/user-input/components/plus-menu-dropdown.tsx b/apps/sim/app/workspace/[workspaceId]/home/components/user-input/components/plus-menu-dropdown.tsx
index 1b7606b7822..54a0142fc81 100644
--- a/apps/sim/app/workspace/[workspaceId]/home/components/user-input/components/plus-menu-dropdown.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/home/components/user-input/components/plus-menu-dropdown.tsx
@@ -1,6 +1,6 @@
 'use client'
 
-import React, { useCallback, useEffect, useMemo, useRef, useState } from 'react'
+import React, { useCallback, useMemo, useRef, useState } from 'react'
 import { Paperclip } from 'lucide-react'
 import {
   DropdownMenu,
@@ -13,7 +13,6 @@ import {
   DropdownMenuTrigger,
 } from '@/components/emcn'
 import { Plus, Sim } from '@/components/emcn/icons'
-import { cn } from '@/lib/core/utils/cn'
 import type { useAvailableResources } from '@/app/workspace/[workspaceId]/home/components/mothership-view/components/add-resource-dropdown'
 import { getResourceConfig } from '@/app/workspace/[workspaceId]/home/components/mothership-view/components/resource-registry'
 import type { PlusMenuHandle } from '@/app/workspace/[workspaceId]/home/components/user-input/components/constants'
@@ -37,24 +36,24 @@ export const PlusMenuDropdown = React.memo(
   ) {
     const [open, setOpen] = useState(false)
     const [search, setSearch] = useState('')
-    const [activeIndex, setActiveIndex] = useState(0)
-    const activeIndexRef = useRef(activeIndex)
+    const [anchorPos, setAnchorPos] = useState<{ left: number; top: number } | null>(null)
+    const buttonRef = useRef<HTMLButtonElement>(null)
+    const searchRef = useRef<HTMLInputElement>(null)
+    const contentRef = useRef<HTMLDivElement>(null)
 
-    useEffect(() => {
-      activeIndexRef.current = activeIndex
-    }, [activeIndex])
+    const doOpen = useCallback((anchor?: { left: number; top: number }) => {
+      if (anchor) {
+        setAnchorPos(anchor)
+      } else {
+        const rect = buttonRef.current?.getBoundingClientRect()
+        if (!rect) return
+        setAnchorPos({ left: rect.left, top: rect.top })
+      }
+      setOpen(true)
+      setSearch('')
+    }, [])
 
-    React.useImperativeHandle(
-      ref,
-      () => ({
-        open: () => {
-          setOpen(true)
-          setSearch('')
-          setActiveIndex(0)
-        },
-      }),
-      []
-    )
+    React.useImperativeHandle(ref, () => ({ open: doOpen }), [doOpen])
 
     const filteredItems = useMemo(() => {
       const q = search.toLowerCase().trim()
@@ -69,7 +68,6 @@ export const PlusMenuDropdown = React.memo(
         onResourceSelect(resource)
         setOpen(false)
         setSearch('')
-        setActiveIndex(0)
       },
       [onResourceSelect]
     )
@@ -79,32 +77,37 @@ export const PlusMenuDropdown = React.memo(
 
     const handleSearchKeyDown = useCallback(
       (e: React.KeyboardEvent<HTMLInputElement>) => {
-        const items = filteredItemsRef.current
-        if (!items) return
         if (e.key === 'ArrowDown') {
           e.preventDefault()
-          setActiveIndex((prev) => Math.min(prev + 1, items.length - 1))
-        } else if (e.key === 'ArrowUp') {
-          e.preventDefault()
-          setActiveIndex((prev) => Math.max(prev - 1, 0))
+          const firstItem = contentRef.current?.querySelector<HTMLElement>('[role="menuitem"]')
+          firstItem?.focus()
         } else if (e.key === 'Enter') {
           e.preventDefault()
-          const idx = activeIndexRef.current
-          if (items.length > 0 && items[idx]) {
-            const { type, item } = items[idx]
-            handleSelect({ type, id: item.id, title: item.name })
-          }
+          const first = filteredItemsRef.current?.[0]
+          if (first) handleSelect({ type: first.type, id: first.item.id, title: first.item.name })
         }
       },
       [handleSelect]
     )
 
+    const handleContentKeyDown = useCallback((e: React.KeyboardEvent<HTMLDivElement>) => {
+      if (e.key === 'ArrowUp') {
+        const items = Array.from(
+          contentRef.current?.querySelectorAll<HTMLElement>('[role="menuitem"]') ?? []
+        )
+        if (items[0] && items[0] === document.activeElement) {
+          e.preventDefault()
+          searchRef.current?.focus()
+        }
+      }
+    }, [])
+
     const handleOpenChange = useCallback(
       (isOpen: boolean) => {
         setOpen(isOpen)
         if (!isOpen) {
           setSearch('')
-          setActiveIndex(0)
+          setAnchorPos(null)
           onClose()
         }
       },
@@ -126,126 +129,138 @@ export const PlusMenuDropdown = React.memo(
     )
 
     return (
-      <DropdownMenu open={open} onOpenChange={handleOpenChange}>
-        <DropdownMenuTrigger asChild>
-          <button
-            type='button'
-            className='flex h-[28px] w-[28px] cursor-pointer items-center justify-center rounded-full border border-[#F0F0F0] transition-colors hover:bg-[#F7F7F7] dark:border-[#3d3d3d] dark:hover:bg-[#303030]'
-            title='Add attachments or resources'
+      <>
+        <DropdownMenu open={open} onOpenChange={handleOpenChange}>
+          <DropdownMenuTrigger asChild>
+            <div
+              style={{
+                position: 'fixed',
+                left: anchorPos?.left ?? 0,
+                top: anchorPos?.top ?? 0,
+                width: 0,
+                height: 0,
+                pointerEvents: 'none',
+              }}
+            />
+          </DropdownMenuTrigger>
+          <DropdownMenuContent
+            ref={contentRef}
+            align='start'
+            side='top'
+            sideOffset={8}
+            className='flex w-[240px] flex-col overflow-hidden'
+            onCloseAutoFocus={handleCloseAutoFocus}
+            onKeyDown={handleContentKeyDown}
           >
-            <Plus className='h-[16px] w-[16px] text-[var(--text-icon)]' />
-          </button>
-        </DropdownMenuTrigger>
-        <DropdownMenuContent
-          align='start'
-          side='top'
-          sideOffset={8}
-          className='flex w-[240px] flex-col overflow-hidden'
-          onCloseAutoFocus={handleCloseAutoFocus}
-        >
-          <DropdownMenuSearchInput
-            placeholder='Search resources...'
-            value={search}
-            onChange={(e) => {
-              setSearch(e.target.value)
-              setActiveIndex(0)
-            }}
-            onKeyDown={handleSearchKeyDown}
-          />
-          <div className='min-h-0 flex-1 overflow-y-auto'>
-            {filteredItems ? (
-              filteredItems.length > 0 ? (
-                filteredItems.map(({ type, item }, index) => {
-                  const config = getResourceConfig(type)
-                  return (
-                    <DropdownMenuItem
-                      key={`${type}:${item.id}`}
-                      className={cn(index === activeIndex && 'bg-[var(--surface-active)]')}
-                      onMouseEnter={() => setActiveIndex(index)}
-                      onClick={() => {
-                        handleSelect({
-                          type,
-                          id: item.id,
-                          title: item.name,
-                        })
-                      }}
-                    >
-                      {config.renderDropdownItem({ item })}
-                      <span className='ml-auto pl-2 text-[11px] text-[var(--text-tertiary)]'>
-                        {config.label}
-                      </span>
-                    </DropdownMenuItem>
-                  )
-                })
+            <DropdownMenuSearchInput
+              ref={searchRef}
+              placeholder='Search resources...'
+              value={search}
+              onChange={(e) => setSearch(e.target.value)}
+              onKeyDown={handleSearchKeyDown}
+            />
+            <div className='min-h-0 flex-1 overflow-y-auto'>
+              {filteredItems ? (
+                filteredItems.length > 0 ? (
+                  filteredItems.map(({ type, item }, index) => {
+                    const config = getResourceConfig(type)
+                    return (
+                      <DropdownMenuItem
+                        key={`${type}:${item.id}`}
+                        onClick={() => {
+                          handleSelect({
+                            type,
+                            id: item.id,
+                            title: item.name,
+                          })
+                        }}
+                      >
+                        {config.renderDropdownItem({ item })}
+                        <span className='ml-auto pl-2 text-[11px] text-[var(--text-tertiary)]'>
+                          {config.label}
+                        </span>
+                      </DropdownMenuItem>
+                    )
+                  })
+                ) : (
+                  <div className='px-2 py-[5px] text-center font-medium text-[12px] text-[var(--text-tertiary)]'>
+                    No results
+                  </div>
+                )
               ) : (
-                <div className='px-2 py-[5px] text-center font-medium text-[12px] text-[var(--text-tertiary)]'>
-                  No results
-                </div>
-              )
-            ) : (
-              <>
-                <DropdownMenuItem
-                  onClick={() => {
-                    setOpen(false)
-                    onFileSelect()
-                  }}
-                >
-                  <Paperclip className='h-[14px] w-[14px]' strokeWidth={2} />
-                  <span>Attachments</span>
-                </DropdownMenuItem>
-                <DropdownMenuSub>
-                  <DropdownMenuSubTrigger>
-                    <Sim className='h-[14px] w-[14px]' fill='currentColor' />
-                    <span>Workspace</span>
-                  </DropdownMenuSubTrigger>
-                  <DropdownMenuSubContent>
-                    {availableResources.map(({ type, items }) => {
-                      if (items.length === 0) return null
-                      const config = getResourceConfig(type)
-                      const Icon = config.icon
-                      return (
-                        <DropdownMenuSub key={type}>
-                          <DropdownMenuSubTrigger>
-                            {type === 'workflow' ? (
-                              <div
-                                className='h-[14px] w-[14px] flex-shrink-0 rounded-[3px] border-[2px]'
-                                style={{
-                                  backgroundColor: '#808080',
-                                  borderColor: '#80808060',
-                                  backgroundClip: 'padding-box',
-                                }}
-                              />
-                            ) : (
-                              <Icon className='h-[14px] w-[14px]' />
-                            )}
-                            <span>{config.label}</span>
-                          </DropdownMenuSubTrigger>
-                          <DropdownMenuSubContent>
-                            {items.map((item) => (
-                              <DropdownMenuItem
-                                key={item.id}
-                                onClick={() => {
-                                  handleSelect({
-                                    type,
-                                    id: item.id,
-                                    title: item.name,
-                                  })
-                                }}
-                              >
-                                {config.renderDropdownItem({ item })}
-                              </DropdownMenuItem>
-                            ))}
-                          </DropdownMenuSubContent>
-                        </DropdownMenuSub>
-                      )
-                    })}
-                  </DropdownMenuSubContent>
-                </DropdownMenuSub>
-              </>
-            )}
-          </div>
-        </DropdownMenuContent>
-      </DropdownMenu>
+                <>
+                  <DropdownMenuItem
+                    onClick={() => {
+                      setOpen(false)
+                      onFileSelect()
+                    }}
+                  >
+                    <Paperclip className='h-[14px] w-[14px]' strokeWidth={2} />
+                    <span>Attachments</span>
+                  </DropdownMenuItem>
+                  <DropdownMenuSub>
+                    <DropdownMenuSubTrigger>
+                      <Sim className='h-[14px] w-[14px]' fill='currentColor' />
+                      <span>Workspace</span>
+                    </DropdownMenuSubTrigger>
+                    <DropdownMenuSubContent>
+                      {availableResources.map(({ type, items }) => {
+                        if (items.length === 0) return null
+                        const config = getResourceConfig(type)
+                        const Icon = config.icon
+                        return (
+                          <DropdownMenuSub key={type}>
+                            <DropdownMenuSubTrigger>
+                              {type === 'workflow' ? (
+                                <div
+                                  className='h-[14px] w-[14px] flex-shrink-0 rounded-[3px] border-[2px]'
+                                  style={{
+                                    backgroundColor: '#808080',
+                                    borderColor: '#80808060',
+                                    backgroundClip: 'padding-box',
+                                  }}
+                                />
+                              ) : (
+                                <Icon className='h-[14px] w-[14px]' />
+                              )}
+                              <span>{config.label}</span>
+                            </DropdownMenuSubTrigger>
+                            <DropdownMenuSubContent>
+                              {items.map((item) => (
+                                <DropdownMenuItem
+                                  key={item.id}
+                                  onClick={() => {
+                                    handleSelect({
+                                      type,
+                                      id: item.id,
+                                      title: item.name,
+                                    })
+                                  }}
+                                >
+                                  {config.renderDropdownItem({ item })}
+                                </DropdownMenuItem>
+                              ))}
+                            </DropdownMenuSubContent>
+                          </DropdownMenuSub>
+                        )
+                      })}
+                    </DropdownMenuSubContent>
+                  </DropdownMenuSub>
+                </>
+              )}
+            </div>
+          </DropdownMenuContent>
+        </DropdownMenu>
+        <button
+          ref={buttonRef}
+          type='button'
+          onClick={() => doOpen()}
+          className='flex h-[28px] w-[28px] cursor-pointer items-center justify-center rounded-full border border-[#F0F0F0] transition-colors hover:bg-[#F7F7F7] dark:border-[#3d3d3d] dark:hover:bg-[#303030]'
+          title='Add attachments or resources'
+        >
+          <Plus className='h-[16px] w-[16px] text-[var(--text-icon)]' />
+        </button>
+      </>
     )
   })
 )
diff --git a/apps/sim/app/workspace/[workspaceId]/home/components/user-input/user-input.tsx b/apps/sim/app/workspace/[workspaceId]/home/components/user-input/user-input.tsx
index 3fb58aceb18..b830123d1a0 100644
--- a/apps/sim/app/workspace/[workspaceId]/home/components/user-input/user-input.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/home/components/user-input/user-input.tsx
@@ -50,6 +50,50 @@ import { useWorkflowRegistry } from '@/stores/workflows/registry/store'
 
 export type { FileAttachmentForApi } from '@/app/workspace/[workspaceId]/home/types'
 
+function getCaretAnchor(
+  textarea: HTMLTextAreaElement,
+  caretPos: number
+): { left: number; top: number } {
+  const textareaRect = textarea.getBoundingClientRect()
+  const style = window.getComputedStyle(textarea)
+
+  const mirror = document.createElement('div')
+  mirror.style.position = 'absolute'
+  mirror.style.top = '0'
+  mirror.style.left = '0'
+  mirror.style.visibility = 'hidden'
+  mirror.style.whiteSpace = 'pre-wrap'
+  mirror.style.overflowWrap = 'break-word'
+  mirror.style.font = style.font
+  mirror.style.padding = style.padding
+  mirror.style.border = style.border
+  mirror.style.width = style.width
+  mirror.style.lineHeight = style.lineHeight
+  mirror.style.boxSizing = style.boxSizing
+  mirror.style.letterSpacing = style.letterSpacing
+  mirror.style.textTransform = style.textTransform
+  mirror.style.textIndent = style.textIndent
+  mirror.style.textAlign = style.textAlign
+  mirror.textContent = textarea.value.substring(0, caretPos)
+
+  const marker = document.createElement('span')
+  marker.style.display = 'inline-block'
+  marker.style.width = '0px'
+  marker.style.padding = '0'
+  marker.style.border = '0'
+  mirror.appendChild(marker)
+
+  document.body.appendChild(mirror)
+  const markerRect = marker.getBoundingClientRect()
+  const mirrorRect = mirror.getBoundingClientRect()
+  document.body.removeChild(mirror)
+
+  return {
+    left: textareaRect.left + (markerRect.left - mirrorRect.left) - textarea.scrollLeft,
+    top: textareaRect.top + (markerRect.top - mirrorRect.top) - textarea.scrollTop,
+  }
+}
+
 interface UserInputProps {
   defaultValue?: string
   editValue?: string
@@ -486,7 +530,8 @@ export function UserInput({
         const adjusted = `${before}${after}`
         setValue(adjusted)
         atInsertPosRef.current = caret - 1
-        plusMenuRef.current?.open()
+        const anchor = getCaretAnchor(e.target, caret - 1)
+        plusMenuRef.current?.open(anchor)
         restartRecognition(adjusted)
         return
       }