diff --git a/app/client/src/PluginActionEditor/PluginActionContext.tsx b/app/client/src/PluginActionEditor/PluginActionContext.tsx
index 0b99f9dc363d..21c76f6c8985 100644
--- a/app/client/src/PluginActionEditor/PluginActionContext.tsx
+++ b/app/client/src/PluginActionEditor/PluginActionContext.tsx
@@ -20,7 +20,7 @@ interface PluginActionContextType {
 const PluginActionContext = createContext<PluginActionContextType | null>(null);
 
 interface ChildrenProps {
-  children: ReactNode[];
+  children: ReactNode | ReactNode[];
 }
 
 export const PluginActionContextProvider = (
diff --git a/app/client/src/PluginActionEditor/PluginActionEditor.tsx b/app/client/src/PluginActionEditor/PluginActionEditor.tsx
index d8e480403064..bfdad62b30b7 100644
--- a/app/client/src/PluginActionEditor/PluginActionEditor.tsx
+++ b/app/client/src/PluginActionEditor/PluginActionEditor.tsx
@@ -18,7 +18,7 @@ import CenteredWrapper from "components/designSystems/appsmith/CenteredWrapper";
 import { Text } from "@appsmith/ads";
 
 interface ChildrenProps {
-  children: React.ReactNode[];
+  children: React.ReactNode | React.ReactNode[];
 }
 
 const PluginActionEditor = (props: ChildrenProps) => {
diff --git a/app/client/src/PluginActionEditor/components/PluginActionToolbar.tsx b/app/client/src/PluginActionEditor/components/PluginActionToolbar.tsx
index ee90ecc960ba..75ee4dc86bd2 100644
--- a/app/client/src/PluginActionEditor/components/PluginActionToolbar.tsx
+++ b/app/client/src/PluginActionEditor/components/PluginActionToolbar.tsx
@@ -1,11 +1,12 @@
 import React from "react";
 import { IDEToolbar } from "IDE";
-import { Button, Tooltip } from "@appsmith/ads";
-import { modText } from "../../utils/helpers";
+import { Button, Menu, MenuContent, MenuTrigger, Tooltip } from "@appsmith/ads";
+import { modText } from "utils/helpers";
 
 interface PluginActionToolbarProps {
   runOptions?: React.ReactNode;
   children?: React.ReactNode[] | React.ReactNode;
+  menuContent?: React.ReactNode[] | React.ReactNode;
 }
 
 const PluginActionToolbar = (props: PluginActionToolbarProps) => {
@@ -29,12 +30,19 @@ const PluginActionToolbar = (props: PluginActionToolbarProps) => {
           size="sm"
           startIcon="settings-2-line"
         />
-        <Button
-          isIconButton
-          kind="tertiary"
-          size="sm"
-          startIcon="more-2-fill"
-        />
+        <Menu>
+          <MenuTrigger>
+            <Button
+              isIconButton
+              kind="tertiary"
+              size="sm"
+              startIcon="more-2-fill"
+            />
+          </MenuTrigger>
+          <MenuContent loop style={{ zIndex: 100 }} width="200px">
+            {props.menuContent}
+          </MenuContent>
+        </Menu>
       </IDEToolbar.Right>
     </IDEToolbar>
   );
diff --git a/app/client/src/ce/pages/Editor/AppPluginActionEditor/AppPluginActionEditor.tsx b/app/client/src/ce/pages/Editor/AppPluginActionEditor/AppPluginActionEditor.tsx
index 6ed514390c08..e5f9366c05c5 100644
--- a/app/client/src/ce/pages/Editor/AppPluginActionEditor/AppPluginActionEditor.tsx
+++ b/app/client/src/ce/pages/Editor/AppPluginActionEditor/AppPluginActionEditor.tsx
@@ -1,17 +1,24 @@
 import React from "react";
 import {
   PluginActionEditor,
-  PluginActionToolbar,
   PluginActionForm,
   PluginActionResponsePane,
 } from "PluginActionEditor";
+import {
+  ConvertToModuleDisabler,
+  ConvertToModuleCallout,
+} from "./components/ConvertToModule";
+import AppPluginActionToolbar from "./components/AppPluginActionToolbar";
 
 const AppPluginActionEditor = () => {
   return (
     <PluginActionEditor>
-      <PluginActionToolbar />
-      <PluginActionForm />
-      <PluginActionResponsePane />
+      <ConvertToModuleDisabler>
+        <AppPluginActionToolbar />
+        <ConvertToModuleCallout />
+        <PluginActionForm />
+        <PluginActionResponsePane />
+      </ConvertToModuleDisabler>
     </PluginActionEditor>
   );
 };
diff --git a/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/AppPluginActionToolbar.tsx b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/AppPluginActionToolbar.tsx
new file mode 100644
index 000000000000..ab44ba573b3d
--- /dev/null
+++ b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/AppPluginActionToolbar.tsx
@@ -0,0 +1,9 @@
+import React from "react";
+import { PluginActionToolbar } from "PluginActionEditor";
+import { ConvertToModuleCTA } from "./ConvertToModule";
+
+const AppPluginActionToolbar = () => {
+  return <PluginActionToolbar menuContent={<ConvertToModuleCTA />} />;
+};
+
+export default AppPluginActionToolbar;
diff --git a/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleCTA.tsx b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleCTA.tsx
new file mode 100644
index 000000000000..83aac04d90e5
--- /dev/null
+++ b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleCTA.tsx
@@ -0,0 +1,35 @@
+import React from "react";
+import { usePluginActionContext } from "PluginActionEditor";
+import { useFeatureFlag } from "utils/hooks/useFeatureFlag";
+import { FEATURE_FLAG } from "ee/entities/FeatureFlag";
+import { useSelector } from "react-redux";
+import { getPagePermissions } from "selectors/editorSelectors";
+import {
+  getHasCreateActionPermission,
+  getHasDeleteActionPermission,
+} from "ee/utils/BusinessFeatures/permissionPageHelpers";
+import { MODULE_TYPE } from "ee/constants/ModuleConstants";
+import ConvertToModuleInstanceCTA from "ee/pages/Editor/EntityEditor/ConvertToModuleInstanceCTA";
+
+const ConvertToModuleCTA = () => {
+  const { action } = usePluginActionContext();
+  const isFeatureEnabled = useFeatureFlag(FEATURE_FLAG.license_gac_enabled);
+  const pagePermissions = useSelector(getPagePermissions);
+  const isCreatePermitted = getHasCreateActionPermission(
+    isFeatureEnabled,
+    pagePermissions,
+  );
+  const isDeletePermitted = getHasDeleteActionPermission(
+    isFeatureEnabled,
+    action.userPermissions,
+  );
+  const convertToModuleProps = {
+    canCreateModuleInstance: isCreatePermitted,
+    canDeleteEntity: isDeletePermitted,
+    entityId: action.id,
+    moduleType: MODULE_TYPE.QUERY,
+  };
+  return <ConvertToModuleInstanceCTA {...convertToModuleProps} />;
+};
+
+export default ConvertToModuleCTA;
diff --git a/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleCallout.tsx b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleCallout.tsx
new file mode 100644
index 000000000000..a58ebc069dd3
--- /dev/null
+++ b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleCallout.tsx
@@ -0,0 +1,40 @@
+import React from "react";
+import { Flex, Icon } from "@appsmith/ads";
+import { useSelector } from "react-redux";
+import { getIsActionConverting } from "ee/selectors/entitiesSelector";
+import { usePluginActionContext } from "PluginActionEditor";
+import {
+  ENTITY_ICON_SIZE,
+  EntityIcon,
+} from "pages/Editor/Explorer/ExplorerIcons";
+import ConvertEntityNotification from "ee/pages/common/ConvertEntityNotification";
+import { resolveIcon } from "pages/Editor/utils";
+
+const ConvertToModuleCallout = () => {
+  const { action, plugin } = usePluginActionContext();
+  const isConverting = useSelector((state) =>
+    getIsActionConverting(state, action.id),
+  );
+
+  const PluginIcon = resolveIcon({
+    iconLocation: plugin.iconLocation || "",
+    pluginType: plugin.type,
+    moduleType: action.actionConfiguration?.body?.moduleType,
+  }) || (
+    <EntityIcon
+      height={`${ENTITY_ICON_SIZE}px`}
+      width={`${ENTITY_ICON_SIZE}px`}
+    >
+      <Icon name="module" />
+    </EntityIcon>
+  );
+
+  if (!isConverting) return null;
+  return (
+    <Flex p="spaces-7" w="100%">
+      <ConvertEntityNotification icon={PluginIcon} name={action.name} />
+    </Flex>
+  );
+};
+
+export default ConvertToModuleCallout;
diff --git a/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleDisabler.tsx b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleDisabler.tsx
new file mode 100644
index 000000000000..26cace30fc06
--- /dev/null
+++ b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/ConvertToModuleDisabler.tsx
@@ -0,0 +1,19 @@
+import React from "react";
+import Disabler from "pages/common/Disabler";
+import { usePluginActionContext } from "PluginActionEditor";
+import { useSelector } from "react-redux";
+import { getIsActionConverting } from "ee/selectors/entitiesSelector";
+
+interface Props {
+  children: React.ReactNode | React.ReactNode[];
+}
+
+const ConvertToModuleDisabler = (props: Props) => {
+  const { action } = usePluginActionContext();
+  const isConverting = useSelector((state) =>
+    getIsActionConverting(state, action.id),
+  );
+  return <Disabler isDisabled={isConverting}>{props.children}</Disabler>;
+};
+
+export default ConvertToModuleDisabler;
diff --git a/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/index.tsx b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/index.tsx
new file mode 100644
index 000000000000..c390c4a5dd63
--- /dev/null
+++ b/app/client/src/ce/pages/Editor/AppPluginActionEditor/components/ConvertToModule/index.tsx
@@ -0,0 +1,3 @@
+export { default as ConvertToModuleCTA } from "./ConvertToModuleCTA";
+export { default as ConvertToModuleDisabler } from "./ConvertToModuleDisabler";
+export { default as ConvertToModuleCallout } from "./ConvertToModuleCallout";