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 160b027f7d81..cd1acd256d6b 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 65bde4339738..db47e6987f99 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
@@ -26,47 +26,15 @@ const Sizes = {
   `,
 };
 
-export const StyledList = styled.div`
-  width: 100%;
-  height: 100%;
-  overflow: auto;
-  padding: var(--ads-v2-spaces-1);
-  display: flex;
-  flex-direction: column;
-  gap: var(--ads-v2-spaces-2);
-`;
-
-export const Wrapper = styled.div`
-  display: flex;
-  width: 100%;
-  align-items: center;
-  gap: var(--ads-v2-spaces-3);
-  cursor: pointer;
-  box-sizing: border-box;
-  position: relative;
-`;
-
 export const TooltipTextWrapper = styled.div`
   display: flex;
   min-width: 0;
 `;
 
-export const ContentWrapper = styled.div`
-  display: flex;
-  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;
-  gap: var(--ads-v2-spaces-3);
+  gap: var(--ads-v2-spaces-2);
   display: flex;
 `;
 
@@ -74,34 +42,24 @@ export const InlineDescriptionWrapper = styled.div`
   display: flex;
   justify-content: space-between;
   align-items: center;
-  min-width: 0;
-  gap: var(--ads-v2-spaces-3);
   flex: 1;
+  min-width: 0;
 `;
 
-export const EndIconWrapper = styled.div`
-  position: absolute;
-  right: var(--ads-v2-spaces-3);
+export const RightControlWrapper = styled.div`
+  height: 100%;
+  line-height: normal;
 `;
 
-export const StyledListItem = styled.div<{
-  size: ListSizes;
-  endIcon?: string;
-  isBlockDescription: boolean;
-}>`
-  ${Variables};
-
+export const ContentTextWrapper = 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;`}}
-
-  ${({ size }) => Sizes[size]}
-
+  gap: var(--ads-v2-spaces-3);
+  overflow: hidden;
+  flex: 1;
+  min-width: 0;
 
   & .${ListItemTextOverflowClassName} {
     overflow: hidden;
@@ -115,7 +73,7 @@ export const StyledListItem = styled.div<{
   }
 
   & .${ListItemBDescClassName} {
-    -webkit-line-clamp: 2;
+    -webkit-line-clamp: 1;
     display: -webkit-box;
     -webkit-box-orient: vertical;
     text-overflow: initial;
@@ -126,14 +84,53 @@ export const StyledListItem = styled.div<{
 
   & .${ListItemIDescClassName} {
     font-size: var(--listitem-idescription-font-size);
+    line-height: 16px;
+    padding-right: var(--ads-v2-spaces-2);
   }
+`;
 
-  &:hover {
-    background-color: var(--ads-v2-colors-content-surface-hover-bg);
+export const StyledList = styled.div`
+  width: 100%;
+  height: 100%;
+  overflow: auto;
+  padding: var(--ads-v2-spaces-1);
+  display: flex;
+  flex-direction: column;
+  gap: var(--ads-v2-spaces-2);
+`;
+
+export const StyledListItem = styled.div<{
+  size: ListSizes;
+}>`
+  ${Variables};
+
+  display: flex;
+  width: 100%;
+  align-items: center;
+  cursor: pointer;
+  box-sizing: border-box;
+  position: relative;
+  border-radius: var(--ads-v2-border-radius);
+  padding: var(--ads-v2-spaces-2);
+  padding-left: var(--ads-v2-spaces-3);
+
+  ${({ size }) => Sizes[size]}
+
+  &[data-isblockdescription="true"] {
+    height: 54px;
   }
 
-  &:active {
-    background-color: var(--ads-v2-colors-content-surface-active-bg);
+  &[data-isblockdescription="false"] {
+    height: 32px;
+  }
+
+  &[data-rightcontrolvisibility="hover"] {
+    ${RightControlWrapper} {
+      display: none;
+    }
+    &:hover ${RightControlWrapper} {
+      display: block;
+    }
   }
 
   &[data-selected="true"] {
@@ -144,6 +141,15 @@ export const StyledListItem = styled.div<{
   &[data-disabled="true"] {
     cursor: not-allowed;
     opacity: var(--ads-v2-opacity-disabled);
+    background-color: var(--ads-v2-colors-content-surface-default-bg);
+  }
+
+  &:hover {
+    background-color: var(--ads-v2-colors-content-surface-hover-bg);
+  }
+
+  &:active {
+    background-color: var(--ads-v2-colors-content-surface-active-bg);
   }
 
   /* Focus styles */
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 c4761a73972b..56fd0ddee37a 100644
--- a/app/client/packages/design-system/ads/src/List/List.tsx
+++ b/app/client/packages/design-system/ads/src/List/List.tsx
@@ -5,16 +5,14 @@ import type { ListItemProps, ListProps } from "./List.types";
 import {
   ContentTextWrapper,
   DescriptionWrapper,
-  EndIconWrapper,
   InlineDescriptionWrapper,
+  RightControlWrapper,
   StyledList,
   StyledListItem,
   TooltipTextWrapper,
-  Wrapper,
 } from "./List.styles";
 import type { TextProps } from "../Text";
 import { Text } from "../Text";
-import { Button } from "../Button";
 import { Tooltip } from "../Tooltip";
 import {
   ListClassName,
@@ -23,7 +21,6 @@ import {
   ListItemIDescClassName,
   ListItemTextOverflowClassName,
   ListItemTitleClassName,
-  ListItemWrapperClassName,
 } from "./List.constants";
 
 function List({ className, items, ...rest }: ListProps) {
@@ -85,8 +82,9 @@ function ListItem(props: ListItemProps) {
   const {
     description,
     descriptionType = "inline",
-    endIcon,
     hasError,
+    rightControl,
+    rightControlVisibility = "always",
     size = "md",
     startIcon,
     title,
@@ -104,27 +102,6 @@ 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 +109,23 @@ function ListItem(props: ListItemProps) {
   };
 
   return (
-    <Wrapper className={clsx(ListItemWrapperClassName, props.wrapperClassName)}>
-      <StyledListItem
-        className={clsx(ListItemClassName, props.className)}
-        data-disabled={props.isDisabled || false}
-        data-selected={props.isSelected}
-        endIcon={props.endIcon}
-        isBlockDescription={isBlockDescription}
+    <StyledListItem
+      className={clsx(ListItemClassName, props.className)}
+      data-disabled={props.isDisabled || false}
+      data-isblockdescription={isBlockDescription}
+      data-rightcontrolvisibility={rightControlVisibility}
+      data-selected={props.isSelected}
+      size={size}
+      tabIndex={props.isDisabled ? -1 : 0}
+    >
+      <ContentTextWrapper
         onClick={handleOnClick}
         onKeyDown={listItemhandleKeyDown}
-        size={size}
-        tabIndex={props.isDisabled ? -1 : 0}
       >
-        <ContentTextWrapper>
-          {startIcon}
+        {startIcon}
+        {props.customTitleComponent ? (
+          props.customTitleComponent
+        ) : (
           <InlineDescriptionWrapper>
             <DescriptionWrapper>
               <TextWithTooltip
@@ -175,22 +155,12 @@ 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>
+        )}
+      </ContentTextWrapper>
+      {rightControl && (
+        <RightControlWrapper>{rightControl}</RightControlWrapper>
       )}
-    </Wrapper>
+    </StyledListItem>
   );
 }
 
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 d522b287e705..a39db8ec5310 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 +23,17 @@ 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/ce/pages/Editor/IDE/EditorPane/Query/hooks.tsx b/app/client/src/ce/pages/Editor/IDE/EditorPane/Query/hooks.tsx
index c85ffd69def4..55246514bd81 100644
--- a/app/client/src/ce/pages/Editor/IDE/EditorPane/Query/hooks.tsx
+++ b/app/client/src/ce/pages/Editor/IDE/EditorPane/Query/hooks.tsx
@@ -319,7 +319,7 @@ export const useAddQueryListItems = () => {
 
       return {
         startIcon: icon,
-        wrapperClassName: className,
+        className: className,
         title,
         description:
           fileOperation.focusEntityType === FocusEntity.QUERY_MODULE_INSTANCE
diff --git a/app/client/src/pages/Editor/Explorer/ExplorerIcons.tsx b/app/client/src/pages/Editor/Explorer/ExplorerIcons.tsx
index fe87497930b5..589a2667fcda 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 (
diff --git a/app/client/src/pages/Editor/IDE/EditorPane/JS/Add.tsx b/app/client/src/pages/Editor/IDE/EditorPane/JS/Add.tsx
index 88c686152aa3..8663ca11d1fe 100644
--- a/app/client/src/pages/Editor/IDE/EditorPane/JS/Add.tsx
+++ b/app/client/src/pages/Editor/IDE/EditorPane/JS/Add.tsx
@@ -48,7 +48,7 @@ const AddJS = () => {
           : "",
       descriptionType: "inline",
       onClick: onCreateItemClick.bind(null, data),
-      wrapperClassName: createAddClassName(title),
+      className: createAddClassName(title),
     } as ListItemProps;
   };
 
diff --git a/app/client/src/pages/Editor/IDE/EditorPane/components/Group.tsx b/app/client/src/pages/Editor/IDE/EditorPane/components/Group.tsx
index b308b279554c..84a551462adb 100644
--- a/app/client/src/pages/Editor/IDE/EditorPane/components/Group.tsx
+++ b/app/client/src/pages/Editor/IDE/EditorPane/components/Group.tsx
@@ -15,11 +15,11 @@ const StyledList = styled(List)`
   & .ds-load-more .ads-v2-listitem__title {
     --color: var(--ads-v2-color-fg-subtle);
   }
-  & .ads-v2-listitem__wrapper .ads-v2-listitem__idesc {
+  & .ads-v2-listitem .ads-v2-listitem__idesc {
     opacity: 0;
   }
 
-  & .ads-v2-listitem__wrapper:hover .ads-v2-listitem__idesc {
+  & .ads-v2-listitem:hover .ads-v2-listitem__idesc {
     opacity: 1;
   }
 `;