diff --git a/api/models/ConversationTag.js b/api/models/ConversationTag.js
index 9745dce70bd..144aeb18dc6 100644
--- a/api/models/ConversationTag.js
+++ b/api/models/ConversationTag.js
@@ -1,277 +1,257 @@
-//const crypto = require('crypto');
-
-const logger = require('~/config/winston');
-const Conversation = require('./schema/convoSchema');
 const ConversationTag = require('./schema/conversationTagSchema');
+const Conversation = require('./schema/convoSchema');
+const logger = require('~/config/winston');
 
 const SAVED_TAG = 'Saved';
 
-const updateTagsForConversation = async (user, conversationId, tags) => {
+/**
+ * Retrieves all conversation tags for a user.
+ * @param {string} user - The user ID.
+ * @returns {Promise<Array>} An array of conversation tags.
+ */
+const getConversationTags = async (user) => {
   try {
-    const conversation = await Conversation.findOne({ user, conversationId });
-    if (!conversation) {
-      return { message: 'Conversation not found' };
-    }
+    const cTags = await ConversationTag.find({ user }).sort({ position: 1 }).lean();
 
-    const addedTags = tags.tags.filter((tag) => !conversation.tags.includes(tag));
-    const removedTags = conversation.tags.filter((tag) => !tags.tags.includes(tag));
-    for (const tag of addedTags) {
-      await ConversationTag.updateOne({ tag, user }, { $inc: { count: 1 } }, { upsert: true });
-    }
-    for (const tag of removedTags) {
-      await ConversationTag.updateOne({ tag, user }, { $inc: { count: -1 } });
-    }
-    conversation.tags = tags.tags;
-    await conversation.save({ timestamps: { updatedAt: false } });
-    return conversation.tags;
+    cTags.sort((a, b) => {
+      if (a.tag === SAVED_TAG) {
+        return -1;
+      }
+      if (b.tag === SAVED_TAG) {
+        return 1;
+      }
+      return 0;
+    });
+
+    return cTags;
   } catch (error) {
-    logger.error('[updateTagsToConversation] Error updating tags', error);
-    return { message: 'Error updating tags' };
+    logger.error('[getConversationTags] Error getting conversation tags', error);
+    throw new Error('Error getting conversation tags');
   }
 };
 
+/**
+ * Creates a new conversation tag.
+ * @param {string} user - The user ID.
+ * @param {Object} data - The tag data.
+ * @param {string} data.tag - The tag name.
+ * @param {string} [data.description] - The tag description.
+ * @param {boolean} [data.addToConversation] - Whether to add the tag to a conversation.
+ * @param {string} [data.conversationId] - The conversation ID to add the tag to.
+ * @returns {Promise<Object>} The created tag.
+ */
 const createConversationTag = async (user, data) => {
   try {
-    const cTag = await ConversationTag.findOne({ user, tag: data.tag });
-    if (cTag) {
-      return cTag;
+    const { tag, description, addToConversation, conversationId } = data;
+
+    const existingTag = await ConversationTag.findOne({ user, tag }).lean();
+    if (existingTag) {
+      return existingTag;
     }
 
-    const addToConversation = data.addToConversation && data.conversationId;
-    const newTag = await ConversationTag.create({
-      user,
-      tag: data.tag,
-      count: 0,
-      description: data.description,
-      position: 1,
-    });
+    const maxPosition = await ConversationTag.findOne({ user }).sort('-position').lean();
+    const position = (maxPosition?.position || 0) + 1;
 
-    await ConversationTag.updateMany(
-      { user, position: { $gte: 1 }, _id: { $ne: newTag._id } },
-      { $inc: { position: 1 } },
+    const newTag = await ConversationTag.findOneAndUpdate(
+      { tag, user },
+      {
+        tag,
+        user,
+        count: addToConversation ? 1 : 0,
+        position,
+        description,
+        $setOnInsert: { createdAt: new Date() },
+      },
+      {
+        new: true,
+        upsert: true,
+        lean: true,
+      },
     );
 
-    if (addToConversation) {
-      const conversation = await Conversation.findOne({
-        user,
-        conversationId: data.conversationId,
-      });
-      if (conversation) {
-        const tags = [...(conversation.tags || []), data.tag];
-        await updateTagsForConversation(user, data.conversationId, { tags });
-      } else {
-        logger.warn('[updateTagsForConversation] Conversation not found', data.conversationId);
-      }
+    if (addToConversation && conversationId) {
+      await Conversation.findOneAndUpdate(
+        { user, conversationId },
+        { $addToSet: { tags: tag } },
+        { new: true },
+      );
     }
 
-    return await ConversationTag.findOne({ user, tag: data.tag });
+    return newTag;
   } catch (error) {
-    logger.error('[createConversationTag] Error updating conversation tag', error);
-    return { message: 'Error updating conversation tag' };
+    logger.error('[createConversationTag] Error creating conversation tag', error);
+    throw new Error('Error creating conversation tag');
   }
 };
 
-const replaceOrRemoveTagInConversations = async (user, oldtag, newtag) => {
+/**
+ * Updates an existing conversation tag.
+ * @param {string} user - The user ID.
+ * @param {string} oldTag - The current tag name.
+ * @param {Object} data - The updated tag data.
+ * @param {string} [data.tag] - The new tag name.
+ * @param {string} [data.description] - The updated description.
+ * @param {number} [data.position] - The new position.
+ * @returns {Promise<Object>} The updated tag.
+ */
+const updateConversationTag = async (user, oldTag, data) => {
   try {
-    const conversations = await Conversation.find({ user, tags: { $in: [oldtag] } });
-    for (const conversation of conversations) {
-      if (newtag && newtag !== '') {
-        conversation.tags = conversation.tags.map((tag) => (tag === oldtag ? newtag : tag));
-      } else {
-        conversation.tags = conversation.tags.filter((tag) => tag !== oldtag);
-      }
-      await conversation.save({ timestamps: { updatedAt: false } });
-    }
-  } catch (error) {
-    logger.error('[replaceOrRemoveTagInConversations] Error updating conversation tags', error);
-    return { message: 'Error updating conversation tags' };
-  }
-};
+    const { tag: newTag, description, position } = data;
 
-const updateTagPosition = async (user, tag, newPosition) => {
-  try {
-    const cTag = await ConversationTag.findOne({ user, tag });
-    if (!cTag) {
-      return { message: 'Tag not found' };
+    const existingTag = await ConversationTag.findOne({ user, tag: oldTag }).lean();
+    if (!existingTag) {
+      return null;
     }
 
-    const oldPosition = cTag.position;
+    if (newTag && newTag !== oldTag) {
+      const tagAlreadyExists = await ConversationTag.findOne({ user, tag: newTag }).lean();
+      if (tagAlreadyExists) {
+        throw new Error('Tag already exists');
+      }
 
-    if (newPosition === oldPosition) {
-      return cTag;
+      await Conversation.updateMany({ user, tags: oldTag }, { $set: { 'tags.$': newTag } });
     }
 
-    const updateOperations = [];
-
-    if (newPosition > oldPosition) {
-      // Move other tags up
-      updateOperations.push({
-        updateMany: {
-          filter: {
-            user,
-            position: { $gt: oldPosition, $lte: newPosition },
-            tag: { $ne: SAVED_TAG },
-          },
-          update: { $inc: { position: -1 } },
-        },
-      });
-    } else {
-      // Move other tags down
-      updateOperations.push({
-        updateMany: {
-          filter: {
-            user,
-            position: { $gte: newPosition, $lt: oldPosition },
-            tag: { $ne: SAVED_TAG },
-          },
-          update: { $inc: { position: 1 } },
-        },
-      });
+    const updateData = {};
+    if (newTag) {
+      updateData.tag = newTag;
+    }
+    if (description !== undefined) {
+      updateData.description = description;
+    }
+    if (position !== undefined) {
+      await adjustPositions(user, existingTag.position, position);
+      updateData.position = position;
     }
 
-    // Update the target tag's position
-    updateOperations.push({
-      updateOne: {
-        filter: { _id: cTag._id },
-        update: { $set: { position: newPosition } },
-      },
+    return await ConversationTag.findOneAndUpdate({ user, tag: oldTag }, updateData, {
+      new: true,
+      lean: true,
     });
-
-    await ConversationTag.bulkWrite(updateOperations);
-
-    return await ConversationTag.findById(cTag._id);
   } catch (error) {
-    logger.error('[updateTagPosition] Error updating tag position', error);
-    return { message: 'Error updating tag position' };
+    logger.error('[updateConversationTag] Error updating conversation tag', error);
+    throw new Error('Error updating conversation tag');
   }
 };
-module.exports = {
-  SAVED_TAG,
-  ConversationTag,
-  getConversationTags: async (user) => {
-    try {
-      const cTags = await ConversationTag.find({ user }).sort({ position: 1 }).lean();
-
-      cTags.sort((a, b) => {
-        if (a.tag === SAVED_TAG) {
-          return -1;
-        }
-        if (b.tag === SAVED_TAG) {
-          return 1;
-        }
-        return 0;
-      });
 
-      return cTags;
-    } catch (error) {
-      logger.error('[getShare] Error getting share link', error);
-      return { message: 'Error getting share link' };
+/**
+ * Adjusts positions of tags when a tag's position is changed.
+ * @param {string} user - The user ID.
+ * @param {number} oldPosition - The old position of the tag.
+ * @param {number} newPosition - The new position of the tag.
+ * @returns {Promise<void>}
+ */
+const adjustPositions = async (user, oldPosition, newPosition) => {
+  if (oldPosition === newPosition) {
+    return;
+  }
+
+  const update = oldPosition < newPosition ? { $inc: { position: -1 } } : { $inc: { position: 1 } };
+
+  await ConversationTag.updateMany(
+    {
+      user,
+      position: {
+        $gt: Math.min(oldPosition, newPosition),
+        $lte: Math.max(oldPosition, newPosition),
+      },
+    },
+    update,
+  );
+};
+
+/**
+ * Deletes a conversation tag.
+ * @param {string} user - The user ID.
+ * @param {string} tag - The tag to delete.
+ * @returns {Promise<Object>} The deleted tag.
+ */
+const deleteConversationTag = async (user, tag) => {
+  try {
+    const deletedTag = await ConversationTag.findOneAndDelete({ user, tag }).lean();
+    if (!deletedTag) {
+      return null;
     }
-  },
 
-  createConversationTag,
-  updateConversationTag: async (user, tag, data) => {
-    try {
-      const cTag = await ConversationTag.findOne({ user, tag });
-      if (!cTag) {
-        return createConversationTag(user, data);
-      }
+    await Conversation.updateMany({ user, tags: tag }, { $pull: { tags: tag } });
 
-      if (cTag.tag !== data.tag || cTag.description !== data.description) {
-        cTag.tag = data.tag;
-        cTag.description = data.description === undefined ? cTag.description : data.description;
-        await cTag.save();
-      }
+    await ConversationTag.updateMany(
+      { user, position: { $gt: deletedTag.position } },
+      { $inc: { position: -1 } },
+    );
 
-      if (data.position !== undefined && cTag.position !== data.position) {
-        await updateTagPosition(user, tag, data.position);
-      }
+    return deletedTag;
+  } catch (error) {
+    logger.error('[deleteConversationTag] Error deleting conversation tag', error);
+    throw new Error('Error deleting conversation tag');
+  }
+};
 
-      // update conversation tags properties
-      replaceOrRemoveTagInConversations(user, tag, data.tag);
-      return await ConversationTag.findOne({ user, tag: data.tag });
-    } catch (error) {
-      logger.error('[updateConversationTag] Error updating conversation tag', error);
-      return { message: 'Error updating conversation tag' };
+/**
+ * Updates tags for a specific conversation.
+ * @param {string} user - The user ID.
+ * @param {string} conversationId - The conversation ID.
+ * @param {string[]} tags - The new set of tags for the conversation.
+ * @returns {Promise<string[]>} The updated list of tags for the conversation.
+ */
+const updateTagsForConversation = async (user, conversationId, tags) => {
+  try {
+    const conversation = await Conversation.findOne({ user, conversationId }).lean();
+    if (!conversation) {
+      throw new Error('Conversation not found');
     }
-  },
 
-  deleteConversationTag: async (user, tag) => {
-    try {
-      const currentTag = await ConversationTag.findOne({ user, tag });
-      if (!currentTag) {
-        return;
-      }
+    const oldTags = new Set(conversation.tags);
+    const newTags = new Set(tags);
 
-      await currentTag.deleteOne({ user, tag });
+    const addedTags = [...newTags].filter((tag) => !oldTags.has(tag));
+    const removedTags = [...oldTags].filter((tag) => !newTags.has(tag));
 
-      await replaceOrRemoveTagInConversations(user, tag, null);
-      return currentTag;
-    } catch (error) {
-      logger.error('[deleteConversationTag] Error deleting conversation tag', error);
-      return { message: 'Error deleting conversation tag' };
-    }
-  },
+    const bulkOps = [];
 
-  updateTagsForConversation,
-  rebuildConversationTags: async (user) => {
-    try {
-      const conversations = await Conversation.find({ user }).select('tags');
-      const tagCountMap = {};
-
-      // Count the occurrences of each tag
-      conversations.forEach((conversation) => {
-        conversation.tags.forEach((tag) => {
-          if (tagCountMap[tag]) {
-            tagCountMap[tag]++;
-          } else {
-            tagCountMap[tag] = 1;
-          }
-        });
+    for (const tag of addedTags) {
+      bulkOps.push({
+        updateOne: {
+          filter: { user, tag },
+          update: { $inc: { count: 1 } },
+          upsert: true,
+        },
       });
+    }
 
-      const tags = await ConversationTag.find({ user }).sort({ position: -1 });
-
-      // Update existing tags and add new tags
-      for (const [tag, count] of Object.entries(tagCountMap)) {
-        const existingTag = tags.find((t) => t.tag === tag);
-        if (existingTag) {
-          existingTag.count = count;
-          await existingTag.save();
-        } else {
-          const newTag = new ConversationTag({ user, tag, count });
-          tags.push(newTag);
-          await newTag.save();
-        }
-      }
+    for (const tag of removedTags) {
+      bulkOps.push({
+        updateOne: {
+          filter: { user, tag },
+          update: { $inc: { count: -1 } },
+        },
+      });
+    }
 
-      // Set count to 0 for tags that are not in the grouped tags
-      for (const tag of tags) {
-        if (!tagCountMap[tag.tag]) {
-          tag.count = 0;
-          await tag.save();
-        }
-      }
+    if (bulkOps.length > 0) {
+      await ConversationTag.bulkWrite(bulkOps);
+    }
 
-      // Sort tags by position in descending order
-      tags.sort((a, b) => a.position - b.position);
+    const updatedConversation = (
+      await Conversation.findOneAndUpdate(
+        { user, conversationId },
+        { $set: { tags: [...newTags] } },
+        { new: true },
+      )
+    ).toObject();
 
-      // Move the tag with name "saved" to the first position
-      const savedTagIndex = tags.findIndex((tag) => tag.tag === SAVED_TAG);
-      if (savedTagIndex !== -1) {
-        const [savedTag] = tags.splice(savedTagIndex, 1);
-        tags.unshift(savedTag);
-      }
+    return updatedConversation.tags;
+  } catch (error) {
+    logger.error('[updateTagsForConversation] Error updating tags', error);
+    throw new Error('Error updating tags for conversation');
+  }
+};
 
-      // Reassign positions starting from 0
-      tags.forEach((tag, index) => {
-        tag.position = index;
-        tag.save();
-      });
-      return tags;
-    } catch (error) {
-      logger.error('[rearrangeTags] Error rearranging tags', error);
-      return { message: 'Error rearranging tags' };
-    }
-  },
+module.exports = {
+  SAVED_TAG,
+  getConversationTags,
+  createConversationTag,
+  updateConversationTag,
+  deleteConversationTag,
+  updateTagsForConversation,
 };
diff --git a/api/server/routes/convos.js b/api/server/routes/convos.js
index 8757ce76eae..14db4755685 100644
--- a/api/server/routes/convos.js
+++ b/api/server/routes/convos.js
@@ -175,8 +175,17 @@ router.post('/fork', async (req, res) => {
 });
 
 router.put('/tags/:conversationId', async (req, res) => {
-  const tag = await updateTagsForConversation(req.user.id, req.params.conversationId, req.body);
-  res.status(200).json(tag);
+  try {
+    const conversationTags = await updateTagsForConversation(
+      req.user.id,
+      req.params.conversationId,
+      req.body.tags,
+    );
+    res.status(200).json(conversationTags);
+  } catch (error) {
+    logger.error('Error updating conversation tags', error);
+    res.status(500).send('Error updating conversation tags');
+  }
 });
 
 module.exports = router;
diff --git a/api/server/routes/tags.js b/api/server/routes/tags.js
index 0d4d85e3eef..289ee5c8f8a 100644
--- a/api/server/routes/tags.js
+++ b/api/server/routes/tags.js
@@ -1,44 +1,88 @@
 const express = require('express');
-
 const {
   getConversationTags,
   updateConversationTag,
   createConversationTag,
   deleteConversationTag,
-  rebuildConversationTags,
 } = require('~/models/ConversationTag');
 const requireJwtAuth = require('~/server/middleware/requireJwtAuth');
 const router = express.Router();
 router.use(requireJwtAuth);
 
+/**
+ * GET /
+ * Retrieves all conversation tags for the authenticated user.
+ * @param {Object} req - Express request object
+ * @param {Object} res - Express response object
+ */
 router.get('/', async (req, res) => {
-  const tags = await getConversationTags(req.user.id);
-
-  if (tags) {
-    res.status(200).json(tags);
-  } else {
-    res.status(404).end();
+  try {
+    const tags = await getConversationTags(req.user.id);
+    if (tags) {
+      res.status(200).json(tags);
+    } else {
+      res.status(404).end();
+    }
+  } catch (error) {
+    console.error('Error getting conversation tags:', error);
+    res.status(500).json({ error: 'Internal server error' });
   }
 });
 
+/**
+ * POST /
+ * Creates a new conversation tag for the authenticated user.
+ * @param {Object} req - Express request object
+ * @param {Object} res - Express response object
+ */
 router.post('/', async (req, res) => {
-  const tag = await createConversationTag(req.user.id, req.body);
-  res.status(200).json(tag);
-});
-
-router.post('/rebuild', async (req, res) => {
-  const tag = await rebuildConversationTags(req.user.id);
-  res.status(200).json(tag);
+  try {
+    const tag = await createConversationTag(req.user.id, req.body);
+    res.status(200).json(tag);
+  } catch (error) {
+    console.error('Error creating conversation tag:', error);
+    res.status(500).json({ error: 'Internal server error' });
+  }
 });
 
+/**
+ * PUT /:tag
+ * Updates an existing conversation tag for the authenticated user.
+ * @param {Object} req - Express request object
+ * @param {Object} res - Express response object
+ */
 router.put('/:tag', async (req, res) => {
-  const tag = await updateConversationTag(req.user.id, req.params.tag, req.body);
-  res.status(200).json(tag);
+  try {
+    const tag = await updateConversationTag(req.user.id, req.params.tag, req.body);
+    if (tag) {
+      res.status(200).json(tag);
+    } else {
+      res.status(404).json({ error: 'Tag not found' });
+    }
+  } catch (error) {
+    console.error('Error updating conversation tag:', error);
+    res.status(500).json({ error: 'Internal server error' });
+  }
 });
 
+/**
+ * DELETE /:tag
+ * Deletes a conversation tag for the authenticated user.
+ * @param {Object} req - Express request object
+ * @param {Object} res - Express response object
+ */
 router.delete('/:tag', async (req, res) => {
-  const tag = await deleteConversationTag(req.user.id, req.params.tag);
-  res.status(200).json(tag);
+  try {
+    const tag = await deleteConversationTag(req.user.id, req.params.tag);
+    if (tag) {
+      res.status(200).json(tag);
+    } else {
+      res.status(404).json({ error: 'Tag not found' });
+    }
+  } catch (error) {
+    console.error('Error deleting conversation tag:', error);
+    res.status(500).json({ error: 'Internal server error' });
+  }
 });
 
 module.exports = router;
diff --git a/client/src/components/Bookmarks/BookmarkForm.tsx b/client/src/components/Bookmarks/BookmarkForm.tsx
index 98b84362dec..38ebfb2b851 100644
--- a/client/src/components/Bookmarks/BookmarkForm.tsx
+++ b/client/src/components/Bookmarks/BookmarkForm.tsx
@@ -9,9 +9,9 @@ import { cn, removeFocusOutlines, defaultTextProps } from '~/utils/';
 import { useBookmarkContext } from '~/Providers/BookmarkContext';
 import { useConversationTagMutation } from '~/data-provider';
 import { Checkbox, Label, TextareaAutosize } from '~/components/ui/';
+import { useLocalize, useBookmarkSuccess } from '~/hooks';
 import { NotificationSeverity } from '~/common';
 import { useToastContext } from '~/Providers';
-import { useLocalize } from '~/hooks';
 
 type TBookmarkFormProps = {
   bookmark?: TConversationTag;
@@ -31,10 +31,11 @@ const BookmarkForm = ({
   tags,
   setTags,
 }: TBookmarkFormProps) => {
-  const { showToast } = useToastContext();
   const localize = useLocalize();
-  const mutation = useConversationTagMutation(bookmark?.tag);
+  const { showToast } = useToastContext();
   const { bookmarks } = useBookmarkContext();
+  const mutation = useConversationTagMutation(bookmark?.tag);
+  const onSuccess = useBookmarkSuccess(conversation?.conversationId || '');
 
   const {
     register,
@@ -82,6 +83,7 @@ const BookmarkForm = ({
             (tag) => tag !== undefined,
           ) as string[];
           setTags(newTags);
+          onSuccess(newTags);
         }
       },
       onError: () => {
@@ -172,9 +174,9 @@ const BookmarkForm = ({
                 />
               )}
             />
-            <label
+            <button
+              aria-label={localize('com_ui_bookmarks_add_to_conversation')}
               className="form-check-label text-token-text-primary w-full cursor-pointer"
-              htmlFor="addToConversation"
               onClick={() =>
                 setValue('addToConversation', !getValues('addToConversation'), {
                   shouldDirty: true,
@@ -184,7 +186,7 @@ const BookmarkForm = ({
               <div className="flex select-none items-center">
                 {localize('com_ui_bookmarks_add_to_conversation')}
               </div>
-            </label>
+            </button>
           </div>
         )}
       </div>
diff --git a/client/src/components/Bookmarks/BookmarkItem.tsx b/client/src/components/Bookmarks/BookmarkItem.tsx
index ebf7b298f6c..62f8f79a73a 100644
--- a/client/src/components/Bookmarks/BookmarkItem.tsx
+++ b/client/src/components/Bookmarks/BookmarkItem.tsx
@@ -7,6 +7,7 @@ import { cn } from '~/utils';
 type MenuItemProps = {
   tag: string | React.ReactNode;
   selected: boolean;
+  ctx: 'header' | 'nav';
   count?: number;
   handleSubmit: (tag: string) => Promise<void>;
   icon?: React.ReactNode;
@@ -15,6 +16,7 @@ type MenuItemProps = {
 
 const BookmarkItem: FC<MenuItemProps> = ({
   tag,
+  ctx,
   selected,
   count,
   handleSubmit,
@@ -34,13 +36,30 @@ const BookmarkItem: FC<MenuItemProps> = ({
     overflowWrap: 'anywhere',
   };
 
+  const renderIcon = () => {
+    if (icon) {
+      return icon;
+    }
+    if (isLoading) {
+      return <Spinner className="size-4" />;
+    }
+    if (selected) {
+      return <BookmarkFilledIcon className="size-4" />;
+    }
+    return <BookmarkIcon className="size-4" />;
+  };
+
+  const ariaLabel =
+    ctx === 'header' ? `${selected ? 'Remove' : 'Add'} bookmark for ${tag}` : (tag as string);
+
   return (
-    <div
+    <button
+      aria-label={ariaLabel}
       role="menuitem"
       className={cn(
-        'group m-1.5 flex w-[225px] cursor-pointer gap-2 rounded px-2 py-2.5 !pr-3 text-sm !opacity-100 focus:ring-0 radix-disabled:pointer-events-none radix-disabled:opacity-50',
-        'hover:bg-black/5 dark:hover:bg-white/5',
-        highlightSelected && selected && 'bg-black/5 dark:bg-white/5',
+        'group m-1.5 flex w-[225px] cursor-pointer gap-2 rounded bg-transparent px-2 py-2.5 !pr-3 text-sm !opacity-100 focus:ring-0 radix-disabled:pointer-events-none radix-disabled:opacity-50',
+        highlightSelected && selected ? 'bg-surface-secondary' : '',
+        ctx === 'header' ? 'hover:bg-header-hover' : 'hover:bg-surface-hover',
       )}
       tabIndex={-1}
       {...rest}
@@ -48,25 +67,14 @@ const BookmarkItem: FC<MenuItemProps> = ({
     >
       <div className="flex grow items-center justify-between gap-2">
         <div className="flex items-center gap-2">
-          {icon ? (
-            icon
-          ) : isLoading ? (
-            <Spinner className="size-4" />
-          ) : selected ? (
-            <BookmarkFilledIcon className="size-4" />
-          ) : (
-            <BookmarkIcon className="size-4" />
-          )}
+          {renderIcon()}
           <div style={breakWordStyle}>{tag}</div>
         </div>
 
         {count !== undefined && (
           <div className="flex items-center justify-end">
             <span
-              className={cn(
-                'ml-auto w-7 min-w-max whitespace-nowrap rounded-md bg-white px-2.5 py-0.5 text-center text-xs font-medium leading-5 text-gray-600',
-                'dark:bg-gray-800 dark:text-white',
-              )}
+              className="ml-auto w-7 min-w-max whitespace-nowrap rounded-md bg-surface-secondary px-2.5 py-0.5 text-center text-xs font-medium leading-5 text-text-secondary"
               aria-hidden="true"
             >
               {count}
@@ -74,7 +82,8 @@ const BookmarkItem: FC<MenuItemProps> = ({
           </div>
         )}
       </div>
-    </div>
+    </button>
   );
 };
+
 export default BookmarkItem;
diff --git a/client/src/components/Bookmarks/BookmarkItems.tsx b/client/src/components/Bookmarks/BookmarkItems.tsx
index a0c3787be2b..9b4da3b5655 100644
--- a/client/src/components/Bookmarks/BookmarkItems.tsx
+++ b/client/src/components/Bookmarks/BookmarkItems.tsx
@@ -2,6 +2,7 @@ import type { FC } from 'react';
 import { useBookmarkContext } from '~/Providers/BookmarkContext';
 import BookmarkItem from './BookmarkItem';
 interface BookmarkItemsProps {
+  ctx: 'header' | 'nav';
   tags: string[];
   handleSubmit: (tag: string) => Promise<void>;
   header: React.ReactNode;
@@ -9,6 +10,7 @@ interface BookmarkItemsProps {
 }
 
 const BookmarkItems: FC<BookmarkItemsProps> = ({
+  ctx,
   tags,
   handleSubmit,
   header,
@@ -19,9 +21,10 @@ const BookmarkItems: FC<BookmarkItemsProps> = ({
   return (
     <>
       {header}
-      <div className="my-1.5 h-px bg-black/10 dark:bg-white/10" role="none" />
+      <div className="my-1.5 h-px" role="none" />
       {bookmarks.map((bookmark) => (
         <BookmarkItem
+          ctx={ctx}
           key={bookmark.tag}
           tag={bookmark.tag}
           selected={tags.includes(bookmark.tag)}
diff --git a/client/src/components/Chat/Input/Files/FileContainer.tsx b/client/src/components/Chat/Input/Files/FileContainer.tsx
index 3f7d629dca7..0880f6216f6 100644
--- a/client/src/components/Chat/Input/Files/FileContainer.tsx
+++ b/client/src/components/Chat/Input/Files/FileContainer.tsx
@@ -14,14 +14,14 @@ const FileContainer = ({
   const fileType = getFileType(file.type);
 
   return (
-    <div className="group relative inline-block text-sm text-black/70 dark:text-white/90">
-      <div className="relative overflow-hidden rounded-xl border border-gray-200 dark:border-gray-600">
-        <div className="w-60 p-2 dark:bg-gray-600">
+    <div className="group relative inline-block text-sm text-text-primary">
+      <div className="relative overflow-hidden rounded-xl border border-border-medium">
+        <div className="w-60 bg-surface-active p-2">
           <div className="flex flex-row items-center gap-2">
             <FilePreview file={file} fileType={fileType} className="relative" />
             <div className="overflow-hidden">
               <div className="truncate font-medium">{file.filename}</div>
-              <div className="truncate text-gray-300">{fileType.title}</div>
+              <div className="truncate text-text-secondary">{fileType.title}</div>
             </div>
           </div>
         </div>
diff --git a/client/src/components/Chat/Input/OptionsPopover.tsx b/client/src/components/Chat/Input/OptionsPopover.tsx
index ce20f84cd8c..7c68bc4daf6 100644
--- a/client/src/components/Chat/Input/OptionsPopover.tsx
+++ b/client/src/components/Chat/Input/OptionsPopover.tsx
@@ -66,7 +66,7 @@ export default function OptionsPopover({
               {presetsDisabled ? null : (
                 <Button
                   type="button"
-                  className="h-auto w-[150px] justify-start rounded-md border border-gray-300/50 bg-transparent px-2 py-1 text-xs font-medium font-normal text-black hover:bg-gray-100 hover:text-black focus:ring-1 focus:ring-green-500/90 dark:border-gray-500/50 dark:bg-transparent dark:text-white dark:hover:bg-gray-600 dark:focus:ring-white"
+                  className="h-auto w-[150px] justify-start rounded-md border border-gray-300/50 bg-transparent px-2 py-1 text-xs font-normal text-black hover:bg-gray-100 hover:text-black focus:ring-1 focus:ring-ring-primary dark:border-gray-500/50 dark:bg-transparent dark:text-white dark:hover:bg-gray-600 dark:focus:ring-white"
                   onClick={saveAsPreset}
                 >
                   <Save className="mr-1 w-[14px]" />
@@ -77,7 +77,7 @@ export default function OptionsPopover({
               <Button
                 type="button"
                 className={cn(
-                  'ml-auto h-auto bg-transparent px-3 py-2 text-xs font-medium font-normal text-black hover:bg-gray-100 hover:text-black dark:bg-transparent dark:text-white dark:hover:bg-gray-700 dark:hover:text-white',
+                  'ml-auto h-auto bg-transparent px-3 py-2 text-xs font-normal text-black hover:bg-gray-100 hover:text-black dark:bg-transparent dark:text-white dark:hover:bg-gray-700 dark:hover:text-white',
                   removeFocusOutlines,
                 )}
                 onClick={closePopover}
diff --git a/client/src/components/Chat/Menus/BookmarkMenu.tsx b/client/src/components/Chat/Menus/BookmarkMenu.tsx
index 361d29cc6a4..ee798523e6e 100644
--- a/client/src/components/Chat/Menus/BookmarkMenu.tsx
+++ b/client/src/components/Chat/Menus/BookmarkMenu.tsx
@@ -1,62 +1,36 @@
-import { useEffect, useState, type FC } from 'react';
+import { useState, type FC } from 'react';
 import { useRecoilValue } from 'recoil';
-import { useLocation } from 'react-router-dom';
-import { TConversation } from 'librechat-data-provider';
+import { Constants } from 'librechat-data-provider';
 import { Content, Portal, Root, Trigger } from '@radix-ui/react-popover';
 import { BookmarkFilledIcon, BookmarkIcon } from '@radix-ui/react-icons';
 import { useConversationTagsQuery, useTagConversationMutation } from '~/data-provider';
 import { BookmarkMenuItems } from './Bookmarks/BookmarkMenuItems';
 import { BookmarkContext } from '~/Providers/BookmarkContext';
+import { useLocalize, useBookmarkSuccess } from '~/hooks';
 import { Spinner } from '~/components';
-import { useLocalize } from '~/hooks';
 import { cn } from '~/utils';
 import store from '~/store';
 
 const SAVED_TAG = 'Saved';
 const BookmarkMenu: FC = () => {
   const localize = useLocalize();
-  const location = useLocation();
 
-  const activeConvo = useRecoilValue(store.conversationByIndex(0));
-
-  const globalConvo = useRecoilValue(store.conversation) ?? ({} as TConversation);
-  const [tags, setTags] = useState<string[]>();
+  const conversation = useRecoilValue(store.conversationByIndex(0));
+  const conversationId = conversation?.conversationId ?? '';
+  const onSuccess = useBookmarkSuccess(conversationId);
+  const [tags, setTags] = useState<string[]>(conversation?.tags || []);
 
   const [open, setIsOpen] = useState(false);
-  const [conversation, setConversation] = useState<TConversation>();
-
-  let thisConversation: TConversation | null | undefined;
-  if (location.state?.from?.pathname.includes('/chat')) {
-    thisConversation = globalConvo;
-  } else {
-    thisConversation = activeConvo;
-  }
 
-  const { mutateAsync, isLoading } = useTagConversationMutation(
-    thisConversation?.conversationId ?? '',
-  );
+  const { mutateAsync, isLoading } = useTagConversationMutation(conversationId);
 
   const { data } = useConversationTagsQuery();
-  useEffect(() => {
-    if (
-      (!conversation && thisConversation) ||
-      (conversation &&
-        thisConversation &&
-        conversation.conversationId !== thisConversation.conversationId)
-    ) {
-      setConversation(thisConversation);
-      setTags(thisConversation.tags ?? []);
-    }
-    if (tags === undefined && conversation) {
-      setTags(conversation.tags ?? []);
-    }
-  }, [thisConversation, conversation, tags]);
 
   const isActiveConvo =
-    thisConversation &&
-    thisConversation.conversationId &&
-    thisConversation.conversationId !== 'new' &&
-    thisConversation.conversationId !== 'search';
+    conversation &&
+    conversationId &&
+    conversationId !== Constants.NEW_CONVO &&
+    conversationId !== 'search';
 
   if (!isActiveConvo) {
     return <></>;
@@ -70,59 +44,59 @@ const BookmarkMenu: FC = () => {
     if (open && tags && tags.length > 0) {
       setIsOpen(open);
     } else {
-      if (thisConversation && thisConversation.conversationId) {
-        await mutateAsync({
-          conversationId: thisConversation.conversationId,
-          tags: [SAVED_TAG],
-        });
-        setTags([SAVED_TAG]);
-        setConversation({ ...thisConversation, tags: [SAVED_TAG] });
+      if (conversation && conversationId) {
+        await mutateAsync(
+          {
+            tags: [SAVED_TAG],
+          },
+          {
+            onSuccess: (newTags: string[]) => {
+              setTags(newTags);
+              onSuccess(newTags);
+            },
+            onError: () => {
+              console.error('Error adding bookmark');
+            },
+          },
+        );
       }
     }
   };
 
+  const renderButtonContent = () => {
+    if (isLoading) {
+      return <Spinner />;
+    }
+    if (tags && tags.length > 0) {
+      return <BookmarkFilledIcon className="icon-sm" />;
+    }
+    return <BookmarkIcon className="icon-sm" />;
+  };
+
   return (
     <Root open={open} onOpenChange={onOpenChange}>
       <Trigger asChild>
         <button
+          id="header-bookmarks-menu"
           className={cn(
-            'pointer-cursor relative flex flex-col rounded-md border border-gray-100 bg-white text-left focus:outline-none focus:ring-0 dark:border-gray-700 dark:bg-gray-800 sm:text-sm',
-            'hover:bg-gray-50 radix-state-open:bg-gray-50 dark:hover:bg-gray-700 dark:radix-state-open:bg-gray-700',
-            'z-50 flex h-[40px] min-w-4 flex-none items-center justify-center px-3 focus:outline-offset-2 focus:ring-0 focus-visible:ring-2 focus-visible:ring-gray-500',
+            'pointer-cursor relative flex flex-col rounded-md border border-border-light bg-transparent text-left focus:outline-none focus:ring-0 sm:text-sm',
+            'hover:bg-header-button-hover radix-state-open:bg-header-button-hover',
+            'z-50 flex h-[40px] min-w-4 flex-none items-center justify-center px-3 focus:outline-offset-2 focus:ring-0 focus-visible:ring-2 focus-visible:ring-ring-primary ',
           )}
           title={localize('com_ui_bookmarks')}
         >
-          {isLoading ? (
-            <Spinner />
-          ) : tags && tags.length > 0 ? (
-            <BookmarkFilledIcon className="icon-sm" />
-          ) : (
-            <BookmarkIcon className="icon-sm" />
-          )}
+          {renderButtonContent()}
         </button>
       </Trigger>
       <Portal>
         <Content
-          className={cn(
-            'grid w-full',
-            'mt-2 min-w-[240px] overflow-y-auto rounded-lg border border-gray-200 bg-white shadow-lg dark:border-gray-700 dark:bg-gray-700 dark:text-white',
-            'max-h-[500px]',
-          )}
+          className="mt-2 grid max-h-[500px] w-full min-w-[240px] overflow-y-auto rounded-lg border border-border-medium bg-header-primary text-text-primary shadow-lg"
           side="bottom"
           align="start"
         >
           {data && conversation && (
-            // Display all bookmarks registered by the user and highlight the tags of the currently selected conversation
             <BookmarkContext.Provider value={{ bookmarks: data }}>
-              <BookmarkMenuItems
-                // Currently selected conversation
-                conversation={conversation}
-                setConversation={setConversation}
-                // Tags in the conversation
-                tags={tags ?? []}
-                // Update tags in the conversation
-                setTags={setTags}
-              />
+              <BookmarkMenuItems conversation={conversation} tags={tags ?? []} setTags={setTags} />
             </BookmarkContext.Provider>
           )}
         </Content>
diff --git a/client/src/components/Chat/Menus/Bookmarks/BookmarkMenuItems.tsx b/client/src/components/Chat/Menus/Bookmarks/BookmarkMenuItems.tsx
index 7d7d526aa6f..0a25350757b 100644
--- a/client/src/components/Chat/Menus/Bookmarks/BookmarkMenuItems.tsx
+++ b/client/src/components/Chat/Menus/Bookmarks/BookmarkMenuItems.tsx
@@ -1,36 +1,37 @@
-import { useCallback } from 'react';
+import React, { useCallback } from 'react';
 import { BookmarkPlusIcon } from 'lucide-react';
 import type { FC } from 'react';
 import type { TConversation } from 'librechat-data-provider';
 import { BookmarkItems, BookmarkEditDialog } from '~/components/Bookmarks';
 import { useTagConversationMutation } from '~/data-provider';
+import { useLocalize, useBookmarkSuccess } from '~/hooks';
 import { NotificationSeverity } from '~/common';
 import { useToastContext } from '~/Providers';
-import { useLocalize } from '~/hooks';
 
 export const BookmarkMenuItems: FC<{
   conversation: TConversation;
   tags: string[];
-  setTags: (tags: string[]) => void;
-  setConversation: (conversation: TConversation) => void;
-}> = ({ conversation, tags, setTags, setConversation }) => {
+  setTags: React.Dispatch<React.SetStateAction<string[]>>;
+}> = ({ conversation, tags, setTags }) => {
   const { showToast } = useToastContext();
   const localize = useLocalize();
 
-  const { mutateAsync } = useTagConversationMutation(conversation?.conversationId ?? '');
+  const conversationId = conversation?.conversationId ?? '';
+  const onSuccess = useBookmarkSuccess(conversationId);
+
+  const { mutateAsync } = useTagConversationMutation(conversationId);
   const handleSubmit = useCallback(
     async (tag: string): Promise<void> => {
-      if (tags !== undefined && conversation?.conversationId) {
+      if (tags !== undefined && conversationId) {
         const newTags = tags.includes(tag) ? tags.filter((t) => t !== tag) : [...tags, tag];
         await mutateAsync(
           {
-            conversationId: conversation.conversationId,
             tags: newTags,
           },
           {
             onSuccess: (newTags: string[]) => {
               setTags(newTags);
-              setConversation({ ...conversation, tags: newTags });
+              onSuccess(newTags);
             },
             onError: () => {
               showToast({
@@ -42,11 +43,12 @@ export const BookmarkMenuItems: FC<{
         );
       }
     },
-    [tags, conversation],
+    [tags, conversationId, mutateAsync, setTags, onSuccess, showToast],
   );
 
   return (
     <BookmarkItems
+      ctx="header"
       tags={tags}
       handleSubmit={handleSubmit}
       header={
@@ -58,7 +60,7 @@ export const BookmarkMenuItems: FC<{
             trigger={
               <div
                 role="menuitem"
-                className="group m-1.5 flex cursor-pointer gap-2 rounded px-2 !pr-3.5 pb-2.5 pt-3 text-sm !opacity-100 hover:bg-black/5 focus:ring-0 radix-disabled:pointer-events-none radix-disabled:opacity-50 dark:hover:bg-white/5"
+                className="group m-1.5 flex cursor-pointer gap-2 rounded px-2 !pr-3.5 pb-2.5 pt-3 text-sm !opacity-100 hover:bg-header-hover focus:ring-0 radix-disabled:pointer-events-none radix-disabled:opacity-50"
                 tabIndex={-1}
               >
                 <div className="flex grow items-center justify-between gap-2">
diff --git a/client/src/components/Nav/Bookmarks/BookmarkNav.tsx b/client/src/components/Nav/Bookmarks/BookmarkNav.tsx
index c7597303e5a..d82affc61fe 100644
--- a/client/src/components/Nav/Bookmarks/BookmarkNav.tsx
+++ b/client/src/components/Nav/Bookmarks/BookmarkNav.tsx
@@ -4,8 +4,8 @@ import { useLocation } from 'react-router-dom';
 import { TConversation } from 'librechat-data-provider';
 import { Content, Portal, Root, Trigger } from '@radix-ui/react-popover';
 import { BookmarkFilledIcon, BookmarkIcon } from '@radix-ui/react-icons';
-import { useGetConversationTags } from 'librechat-data-provider/react-query';
 import { BookmarkContext } from '~/Providers/BookmarkContext';
+import { useGetConversationTags } from '~/data-provider';
 import BookmarkNavItems from './BookmarkNavItems';
 import { useLocalize } from '~/hooks';
 import { cn } from '~/utils';
@@ -39,22 +39,22 @@ const BookmarkNav: FC<BookmarkNavProps> = ({ tags, setTags }: BookmarkNavProps)
       <Trigger asChild>
         <button
           className={cn(
-            'relative mt-1 flex h-10 w-full cursor-pointer items-center gap-1 rounded-lg border-white bg-gray-50 px-1 py-2 text-black transition-colors duration-200 focus-within:bg-gray-200 hover:bg-gray-200 dark:bg-gray-850 dark:text-white dark:focus-within:bg-gray-800 dark:hover:bg-gray-800',
-            open ? 'bg-gray-200 dark:bg-gray-800' : '',
+            'relative mt-1 flex h-10 w-full cursor-pointer items-center gap-1 rounded-lg border-border-light bg-transparent px-1 py-2 text-text-primary transition-colors duration-200 focus-within:bg-surface-hover hover:bg-surface-hover',
+            open ? 'bg-surface-hover' : '',
           )}
-          id="presets-button"
-          data-testid="presets-button"
-          title={localize('com_endpoint_examples')}
+          id="show-bookmarks"
+          data-testid="show-bookmarks"
+          title={localize('com_ui_bookmarks')}
         >
-          <div className="relative flex h-8 w-8 items-center justify-center rounded-full p-1 dark:text-white">
+          <div className="relative flex h-8 w-8 items-center justify-center rounded-full p-1 text-text-primary">
             {tags.length > 0 ? (
               <BookmarkFilledIcon className="h-5 w-5" />
             ) : (
               <BookmarkIcon className="h-5 w-5" />
             )}
           </div>
-          <div className="grow overflow-hidden whitespace-nowrap text-left text-sm text-black dark:text-gray-100">
-            {tags.length > 0 ? tags.join(',') : localize('com_ui_bookmarks')}
+          <div className="grow overflow-hidden whitespace-nowrap text-left text-sm text-text-primary">
+            {tags.length > 0 ? tags.join(', ') : localize('com_ui_bookmarks')}
           </div>
         </button>
       </Trigger>
@@ -63,7 +63,7 @@ const BookmarkNav: FC<BookmarkNavProps> = ({ tags, setTags }: BookmarkNavProps)
           <Content
             side="bottom"
             align="start"
-            className="mt-2 max-h-96 min-w-[240px] overflow-y-auto rounded-lg border border-gray-200 bg-white shadow-lg dark:border-gray-700 dark:bg-gray-700 dark:text-white lg:max-h-96"
+            className="mt-2 max-h-96 min-w-[240px] overflow-y-auto rounded-lg border border-border-medium bg-surface-primary-alt text-text-primary shadow-lg lg:max-h-96"
           >
             {data && conversation && (
               // Display bookmarks and highlight the selected tag
diff --git a/client/src/components/Nav/Bookmarks/BookmarkNavItems.tsx b/client/src/components/Nav/Bookmarks/BookmarkNavItems.tsx
index 7b7a3eb66f6..4d0c6485b22 100644
--- a/client/src/components/Nav/Bookmarks/BookmarkNavItems.tsx
+++ b/client/src/components/Nav/Bookmarks/BookmarkNavItems.tsx
@@ -39,12 +39,11 @@ const BookmarkNavItems: FC<{
     return Promise.resolve();
   };
 
-  console.log('bookmarks', bookmarks);
-
   if (bookmarks.length === 0) {
     return (
       <div className="flex flex-col">
         <BookmarkItem
+          ctx="nav"
           tag={localize('com_ui_no_bookmarks')}
           data-testid="bookmark-item-clear"
           handleSubmit={() => Promise.resolve()}
@@ -58,11 +57,13 @@ const BookmarkNavItems: FC<{
   return (
     <div className="flex flex-col">
       <BookmarkItems
+        ctx="nav"
         tags={tags}
         handleSubmit={handleSubmit}
         highlightSelected={true}
         header={
           <BookmarkItem
+            ctx="nav"
             tag="Clear all"
             data-testid="bookmark-item-clear"
             handleSubmit={clear}
diff --git a/client/src/components/Nav/Nav.tsx b/client/src/components/Nav/Nav.tsx
index 5d8efa37cba..5a7a9d5bf55 100644
--- a/client/src/components/Nav/Nav.tsx
+++ b/client/src/components/Nav/Nav.tsx
@@ -1,8 +1,6 @@
-/* eslint-disable @typescript-eslint/no-unnecessary-condition */
-/* Reason: SearchContext is not specifying potential undefined type */
 import { useCallback, useEffect, useState, useMemo, memo } from 'react';
-import { useParams } from 'react-router-dom';
 import { useRecoilValue } from 'recoil';
+import { useParams } from 'react-router-dom';
 import type { ConversationListResponse } from 'librechat-data-provider';
 import {
   useMediaQuery,
@@ -159,7 +157,7 @@ const Nav = ({ navVisible, setNavVisible }) => {
                         toggleNav={itemToggleNav}
                         subHeaders={
                           <>
-                           {isSearchEnabled && <SearchBar clearSearch={clearSearch} />}
+                            {isSearchEnabled && <SearchBar clearSearch={clearSearch} />}
                             <BookmarkNav tags={tags} setTags={setTags} />
                           </>
                         }
diff --git a/client/src/components/Nav/SearchBar.tsx b/client/src/components/Nav/SearchBar.tsx
index b26c8c81fcb..27ff8609366 100644
--- a/client/src/components/Nav/SearchBar.tsx
+++ b/client/src/components/Nav/SearchBar.tsx
@@ -58,12 +58,12 @@ const SearchBar = forwardRef((props: SearchBarProps, ref: Ref<HTMLDivElement>) =
   return (
     <div
       ref={ref}
-      className="relative mt-1 flex h-10 cursor-pointer items-center gap-3 rounded-lg border-white bg-gray-50 px-2 px-3 py-2 text-black transition-colors duration-200 focus-within:bg-gray-200 hover:bg-gray-200 dark:bg-gray-850 dark:text-white dark:focus-within:bg-gray-800 dark:hover:bg-gray-800"
+      className="relative mt-1 flex h-10 cursor-pointer items-center gap-3 rounded-lg border-border-medium px-3 py-2 text-text-primary transition-colors duration-200 focus-within:bg-surface-hover hover:bg-surface-hover dark:focus-within:bg-surface-hover"
     >
       {<Search className="absolute left-3 h-4 w-4" />}
       <input
         type="text"
-        className="m-0 mr-0 w-full border-none bg-transparent p-0 pl-7 text-sm leading-tight placeholder-gray-500 placeholder-opacity-100 outline-none dark:placeholder-white dark:placeholder-opacity-100"
+        className="m-0 mr-0 w-full border-none bg-transparent p-0 pl-7 text-sm leading-tight placeholder-text-secondary placeholder-opacity-100 outline-none dark:placeholder-opacity-100"
         value={text}
         onChange={onChange}
         onKeyDown={(e) => {
diff --git a/client/src/components/SidePanel/Bookmarks/BookmarkPanel.tsx b/client/src/components/SidePanel/Bookmarks/BookmarkPanel.tsx
index 97d0c021732..0eedf04e79b 100644
--- a/client/src/components/SidePanel/Bookmarks/BookmarkPanel.tsx
+++ b/client/src/components/SidePanel/Bookmarks/BookmarkPanel.tsx
@@ -1,38 +1,23 @@
 import { BookmarkPlusIcon } from 'lucide-react';
-import { useConversationTagsQuery, useRebuildConversationTagsMutation } from '~/data-provider';
+import { useConversationTagsQuery } from '~/data-provider';
 import { Button } from '~/components/ui';
 import { BookmarkContext } from '~/Providers/BookmarkContext';
 import { BookmarkEditDialog } from '~/components/Bookmarks';
 import BookmarkTable from './BookmarkTable';
-import { Spinner } from '~/components/svg';
 import { useLocalize } from '~/hooks';
-import HoverCardSettings from '~/components/Nav/SettingsTabs/HoverCardSettings';
 
 const BookmarkPanel = () => {
   const localize = useLocalize();
-  const { mutate, isLoading } = useRebuildConversationTagsMutation();
   const { data } = useConversationTagsQuery();
-  const rebuildTags = () => {
-    mutate({});
-  };
+
   return (
     <div className="h-auto max-w-full overflow-x-hidden">
       <BookmarkContext.Provider value={{ bookmarks: data || [] }}>
         <BookmarkTable />
         <div className="flex justify-between gap-2">
-          <Button variant="outline" onClick={rebuildTags} className="w-50 text-sm">
-            {isLoading ? (
-              <Spinner />
-            ) : (
-              <div className="flex gap-2">
-                {localize('com_ui_bookmarks_rebuild')}
-                <HoverCardSettings side="top" text="com_nav_info_bookmarks_rebuild" />
-              </div>
-            )}
-          </Button>
           <BookmarkEditDialog
             trigger={
-              <Button variant="outline" onClick={rebuildTags} className="w-full text-sm">
+              <Button variant="outline" className="w-full text-sm">
                 <BookmarkPlusIcon className="mr-1 size-4" />
                 <div className="break-all">{localize('com_ui_bookmarks_new')}</div>
               </Button>
diff --git a/client/src/components/SidePanel/Bookmarks/BookmarkTable.tsx b/client/src/components/SidePanel/Bookmarks/BookmarkTable.tsx
index 3ca213a8449..d85d64829ba 100644
--- a/client/src/components/SidePanel/Bookmarks/BookmarkTable.tsx
+++ b/client/src/components/SidePanel/Bookmarks/BookmarkTable.tsx
@@ -14,7 +14,11 @@ const BookmarkTable = () => {
 
   const { bookmarks } = useBookmarkContext();
   useEffect(() => {
-    setRows(bookmarks?.map((item) => ({ id: item.tag, ...item })) || []);
+    setRows(
+      bookmarks
+        ?.map((item) => ({ id: item.tag, ...item }))
+        .sort((a, b) => a.position - b.position) || [],
+    );
   }, [bookmarks]);
 
   const moveRow = useCallback((dragIndex: number, hoverIndex: number) => {
@@ -22,13 +26,16 @@ const BookmarkTable = () => {
       const updatedRows = [...prevTags];
       const [movedRow] = updatedRows.splice(dragIndex, 1);
       updatedRows.splice(hoverIndex, 0, movedRow);
-      return updatedRows;
+      return updatedRows.map((row, index) => ({ ...row, position: index }));
     });
   }, []);
 
-  const renderRow = useCallback((row: TConversationTag, position: number) => {
-    return <BookmarkTableRow key={row.tag} moveRow={moveRow} row={row} position={position} />;
-  }, []);
+  const renderRow = useCallback(
+    (row: TConversationTag) => {
+      return <BookmarkTableRow key={row.tag} moveRow={moveRow} row={row} position={row.position} />;
+    },
+    [moveRow],
+  );
 
   const filteredRows = rows.filter((row) =>
     row.tag.toLowerCase().includes(searchQuery.toLowerCase()),
@@ -58,7 +65,7 @@ const BookmarkTable = () => {
               </TableCell>
             </TableRow>
           </TableHeader>
-          <TableBody>{currentRows.map((row, i) => renderRow(row, i))}</TableBody>
+          <TableBody>{currentRows.map((row) => renderRow(row))}</TableBody>
         </Table>
       </div>
       <div className="flex items-center justify-between py-4">
diff --git a/client/src/components/SidePanel/Bookmarks/BookmarkTableRow.tsx b/client/src/components/SidePanel/Bookmarks/BookmarkTableRow.tsx
index 9923fe73982..bcc269fa9eb 100644
--- a/client/src/components/SidePanel/Bookmarks/BookmarkTableRow.tsx
+++ b/client/src/components/SidePanel/Bookmarks/BookmarkTableRow.tsx
@@ -1,8 +1,12 @@
-import React, { useState } from 'react';
+import React, { useState, useRef } from 'react';
 import { useDrag, useDrop } from 'react-dnd';
 import type { TConversationTag } from 'librechat-data-provider';
 import { DeleteBookmarkButton, EditBookmarkButton } from '~/components/Bookmarks';
+import { useConversationTagMutation } from '~/data-provider';
 import { TableRow, TableCell } from '~/components/ui';
+import { NotificationSeverity } from '~/common';
+import { useToastContext } from '~/Providers';
+import { useLocalize } from '~/hooks';
 
 interface BookmarkTableRowProps {
   row: TConversationTag;
@@ -10,13 +14,39 @@ interface BookmarkTableRowProps {
   position: number;
 }
 
+interface DragItem {
+  index: number;
+  id: string;
+  type: string;
+}
+
 const BookmarkTableRow: React.FC<BookmarkTableRowProps> = ({ row, moveRow, position }) => {
   const [isHovered, setIsHovered] = useState(false);
-  const ref = React.useRef<HTMLTableRowElement>(null);
+  const ref = useRef<HTMLTableRowElement>(null);
+
+  const mutation = useConversationTagMutation(row.tag);
+  const localize = useLocalize();
+  const { showToast } = useToastContext();
+
+  const handleDrop = (item: DragItem) => {
+    const data = {
+      ...row,
+      position: item.index,
+    };
+    mutation.mutate(data, {
+      onError: () => {
+        showToast({
+          message: localize('com_ui_bookmarks_update_error'),
+          severity: NotificationSeverity.ERROR,
+        });
+      },
+    });
+  };
 
   const [, drop] = useDrop({
     accept: 'bookmark',
-    hover(item: { index: number }) {
+    drop: (item: DragItem) => handleDrop(item),
+    hover(item: DragItem) {
       if (!ref.current) {
         return;
       }
@@ -43,7 +73,7 @@ const BookmarkTableRow: React.FC<BookmarkTableRowProps> = ({ row, moveRow, posit
   return (
     <TableRow
       ref={ref}
-      className="cursor-move hover:bg-gray-100 dark:hover:bg-gray-800"
+      className="cursor-move hover:bg-surface-secondary"
       style={{ opacity: isDragging ? 0.5 : 1 }}
       onMouseEnter={() => setIsHovered(true)}
       onMouseLeave={() => setIsHovered(false)}
diff --git a/client/src/data-provider/index.ts b/client/src/data-provider/index.ts
index 14f82f312e4..2cfe6520db4 100644
--- a/client/src/data-provider/index.ts
+++ b/client/src/data-provider/index.ts
@@ -3,3 +3,4 @@ export * from './mutations';
 export * from './prompts';
 export * from './queries';
 export * from './roles';
+export * from './tags';
diff --git a/client/src/data-provider/mutations.ts b/client/src/data-provider/mutations.ts
index e4e80235bfe..9e036914b7f 100644
--- a/client/src/data-provider/mutations.ts
+++ b/client/src/data-provider/mutations.ts
@@ -10,6 +10,7 @@ import { useMutation, useQueryClient } from '@tanstack/react-query';
 import { dataService, MutationKeys, QueryKeys, defaultOrderQuery } from 'librechat-data-provider';
 import type t from 'librechat-data-provider';
 import type { InfiniteData, UseMutationResult } from '@tanstack/react-query';
+import useUpdateTagsInConvo from '~/hooks/Conversations/useUpdateTagsInConvo';
 import { updateConversationTag } from '~/utils/conversationTags';
 import { normalizeData } from '~/utils/collection';
 import store from '~/store';
@@ -89,89 +90,6 @@ export const useUpdateConversationMutation = (
   );
 };
 
-const useUpdateTagsInConversation = () => {
-  const queryClient = useQueryClient();
-
-  // Update the queryClient cache with the new tag when a new tag is added/removed to a conversation
-  const updateTagsInConversation = (conversationId: string, tags: string[]) => {
-    // Update the tags for the current conversation
-    const currentConvo = queryClient.getQueryData<t.TConversation>([
-      QueryKeys.conversation,
-      conversationId,
-    ]);
-    if (!currentConvo) {
-      return;
-    }
-
-    const updatedConvo = {
-      ...currentConvo,
-      tags,
-    } as t.TConversation;
-    queryClient.setQueryData([QueryKeys.conversation, conversationId], updatedConvo);
-    queryClient.setQueryData<t.ConversationData>([QueryKeys.allConversations], (convoData) => {
-      if (!convoData) {
-        return convoData;
-      }
-      return updateConvoFields(
-        convoData,
-        {
-          conversationId: currentConvo.conversationId,
-          tags: updatedConvo.tags,
-        } as t.TConversation,
-        true,
-      );
-    });
-  };
-
-  // update the tag to newTag in all conversations when a tag is updated to a newTag
-  // The difference with updateTagsInConversation is that it adds or removes tags for a specific conversation,
-  // whereas this function is for changing the title of a specific tag.
-  const replaceTagsInAllConversations = (tag: string, newTag: string) => {
-    const data = queryClient.getQueryData<InfiniteData<ConversationListResponse>>([
-      QueryKeys.allConversations,
-    ]);
-
-    const conversationIdsWithTag = [] as string[];
-
-    // update tag to newTag in all conversations
-    const newData = JSON.parse(JSON.stringify(data)) as InfiniteData<ConversationListResponse>;
-    for (let pageIndex = 0; pageIndex < newData.pages.length; pageIndex++) {
-      const page = newData.pages[pageIndex];
-      page.conversations = page.conversations.map((conversation) => {
-        if (conversation.conversationId && conversation.tags?.includes(tag)) {
-          conversationIdsWithTag.push(conversation.conversationId);
-          conversation.tags = conversation.tags.map((t) => (t === tag ? newTag : t));
-        }
-        return conversation;
-      });
-    }
-    queryClient.setQueryData<InfiniteData<ConversationListResponse>>(
-      [QueryKeys.allConversations],
-      newData,
-    );
-
-    // update the tag to newTag from the cache of each conversation
-    for (let i = 0; i < conversationIdsWithTag.length; i++) {
-      const conversationId = conversationIdsWithTag[i];
-      const conversation = queryClient.getQueryData<t.TConversation>([
-        QueryKeys.conversation,
-        conversationId,
-      ]);
-      if (conversation && conversation.tags) {
-        const updatedConvo = {
-          ...conversation,
-          tags: conversation.tags.map((t) => (t === tag ? newTag : t)),
-        } as t.TConversation;
-        queryClient.setQueryData<t.TConversation>(
-          [QueryKeys.conversation, conversationId],
-          updatedConvo,
-        );
-      }
-    }
-  };
-
-  return { updateTagsInConversation, replaceTagsInAllConversations };
-};
 /**
  * Add or remove tags for a conversation
  */
@@ -179,7 +97,7 @@ export const useTagConversationMutation = (
   conversationId: string,
 ): UseMutationResult<t.TTagConversationResponse, unknown, t.TTagConversationRequest, unknown> => {
   const query = useConversationTagsQuery();
-  const { updateTagsInConversation } = useUpdateTagsInConversation();
+  const { updateTagsInConversation } = useUpdateTagsInConvo();
   return useMutation(
     (payload: t.TTagConversationRequest) =>
       dataService.addTagToConversation(conversationId, payload),
@@ -385,21 +303,6 @@ export const useDeleteSharedLinkMutation = (
   });
 };
 
-// If the number of conversations tagged is incorrect, recalculate the tag information.
-export const useRebuildConversationTagsMutation = (): UseMutationResult<
-  t.TConversationTagsResponse,
-  unknown,
-  unknown,
-  unknown
-> => {
-  const queryClient = useQueryClient();
-  return useMutation(() => dataService.rebuildConversationTags(), {
-    onSuccess: (_data) => {
-      queryClient.setQueryData<t.TConversationTag[]>([QueryKeys.conversationTags], _data);
-    },
-  });
-};
-
 // Add a tag or update tag information (tag, description, position, etc.)
 export const useConversationTagMutation = (
   tag?: string,
@@ -407,7 +310,7 @@ export const useConversationTagMutation = (
 ): UseMutationResult<t.TConversationTagResponse, unknown, t.TConversationTagRequest, unknown> => {
   const queryClient = useQueryClient();
   const { ..._options } = options || {};
-  const { updateTagsInConversation, replaceTagsInAllConversations } = useUpdateTagsInConversation();
+  const { updateTagsInConversation, replaceTagsInAllConversations } = useUpdateTagsInConvo();
   return useMutation(
     (payload: t.TConversationTagRequest) =>
       tag
@@ -427,6 +330,9 @@ export const useConversationTagMutation = (
               },
             ] as t.TConversationTag[];
           }
+          if (!tag) {
+            return [...data, _data].sort((a, b) => a.position - b.position);
+          }
           return updateConversationTag(data, vars, _data, tag);
         });
         if (vars.addToConversation && vars.conversationId && _data.tag) {
diff --git a/client/src/data-provider/tags.ts b/client/src/data-provider/tags.ts
new file mode 100644
index 00000000000..8651a781c29
--- /dev/null
+++ b/client/src/data-provider/tags.ts
@@ -0,0 +1,19 @@
+import { useQuery } from '@tanstack/react-query';
+import type { UseQueryOptions, QueryObserverResult } from '@tanstack/react-query';
+import type { TConversationTagsResponse } from 'librechat-data-provider';
+import { QueryKeys, dataService } from 'librechat-data-provider';
+
+export const useGetConversationTags = (
+  config?: UseQueryOptions<TConversationTagsResponse>,
+): QueryObserverResult<TConversationTagsResponse> => {
+  return useQuery<TConversationTagsResponse>(
+    [QueryKeys.conversationTags],
+    () => dataService.getConversationTags(),
+    {
+      refetchOnWindowFocus: false,
+      refetchOnReconnect: false,
+      refetchOnMount: false,
+      ...config,
+    },
+  );
+};
diff --git a/client/src/hooks/Conversations/index.ts b/client/src/hooks/Conversations/index.ts
index 105ea2330e7..42f278f9af2 100644
--- a/client/src/hooks/Conversations/index.ts
+++ b/client/src/hooks/Conversations/index.ts
@@ -6,7 +6,9 @@ export { default as useConversation } from './useConversation';
 export { default as useGenerateConvo } from './useGenerateConvo';
 export { default as useConversations } from './useConversations';
 export { default as useDebouncedInput } from './useDebouncedInput';
+export { default as useBookmarkSuccess } from './useBookmarkSuccess';
 export { default as useNavigateToConvo } from './useNavigateToConvo';
 export { default as useSetIndexOptions } from './useSetIndexOptions';
 export { default as useParameterEffects } from './useParameterEffects';
+export { default as useUpdateTagsInConvo } from './useUpdateTagsInConvo';
 export { default as useExportConversation } from './useExportConversation';
diff --git a/client/src/hooks/Conversations/useBookmarkSuccess.ts b/client/src/hooks/Conversations/useBookmarkSuccess.ts
new file mode 100644
index 00000000000..2aeb664d709
--- /dev/null
+++ b/client/src/hooks/Conversations/useBookmarkSuccess.ts
@@ -0,0 +1,27 @@
+import { useSetRecoilState } from 'recoil';
+import useUpdateTagsInConvo from './useUpdateTagsInConvo';
+import store from '~/store';
+
+const useBookmarkSuccess = (conversationId: string) => {
+  const setConversation = useSetRecoilState(store.conversationByIndex(0));
+  const { updateTagsInConversation } = useUpdateTagsInConvo();
+
+  return (newTags: string[]) => {
+    if (!conversationId) {
+      return;
+    }
+    updateTagsInConversation(conversationId, newTags);
+    setConversation((prev) => {
+      if (prev) {
+        return {
+          ...prev,
+          tags: newTags,
+        };
+      }
+      console.error('Conversation not found for bookmark/tags update');
+      return prev;
+    });
+  };
+};
+
+export default useBookmarkSuccess;
diff --git a/client/src/hooks/Conversations/useUpdateTagsInConvo.ts b/client/src/hooks/Conversations/useUpdateTagsInConvo.ts
new file mode 100644
index 00000000000..ebbefe955fe
--- /dev/null
+++ b/client/src/hooks/Conversations/useUpdateTagsInConvo.ts
@@ -0,0 +1,92 @@
+import { useQueryClient } from '@tanstack/react-query';
+import { QueryKeys } from 'librechat-data-provider';
+import type { ConversationListResponse } from 'librechat-data-provider';
+import type { InfiniteData } from '@tanstack/react-query';
+import type t from 'librechat-data-provider';
+import { updateConvoFields } from '~/utils/convos';
+
+const useUpdateTagsInConvo = () => {
+  const queryClient = useQueryClient();
+
+  // Update the queryClient cache with the new tag when a new tag is added/removed to a conversation
+  const updateTagsInConversation = (conversationId: string, tags: string[]) => {
+    // Update the tags for the current conversation
+    const currentConvo = queryClient.getQueryData<t.TConversation>([
+      QueryKeys.conversation,
+      conversationId,
+    ]);
+    if (!currentConvo) {
+      return;
+    }
+
+    const updatedConvo = {
+      ...currentConvo,
+      tags,
+    } as t.TConversation;
+    queryClient.setQueryData([QueryKeys.conversation, conversationId], updatedConvo);
+    queryClient.setQueryData<t.ConversationData>([QueryKeys.allConversations], (convoData) => {
+      if (!convoData) {
+        return convoData;
+      }
+      return updateConvoFields(
+        convoData,
+        {
+          conversationId: currentConvo.conversationId,
+          tags: updatedConvo.tags,
+        } as t.TConversation,
+        true,
+      );
+    });
+  };
+
+  // update the tag to newTag in all conversations when a tag is updated to a newTag
+  // The difference with updateTagsInConversation is that it adds or removes tags for a specific conversation,
+  // whereas this function is for changing the title of a specific tag.
+  const replaceTagsInAllConversations = (tag: string, newTag: string) => {
+    const data = queryClient.getQueryData<InfiniteData<ConversationListResponse>>([
+      QueryKeys.allConversations,
+    ]);
+
+    const conversationIdsWithTag = [] as string[];
+
+    // update tag to newTag in all conversations
+    const newData = JSON.parse(JSON.stringify(data)) as InfiniteData<ConversationListResponse>;
+    for (let pageIndex = 0; pageIndex < newData.pages.length; pageIndex++) {
+      const page = newData.pages[pageIndex];
+      page.conversations = page.conversations.map((conversation) => {
+        if (conversation.conversationId && conversation.tags?.includes(tag)) {
+          conversationIdsWithTag.push(conversation.conversationId);
+          conversation.tags = conversation.tags.map((t) => (t === tag ? newTag : t));
+        }
+        return conversation;
+      });
+    }
+    queryClient.setQueryData<InfiniteData<ConversationListResponse>>(
+      [QueryKeys.allConversations],
+      newData,
+    );
+
+    // update the tag to newTag from the cache of each conversation
+    for (let i = 0; i < conversationIdsWithTag.length; i++) {
+      const conversationId = conversationIdsWithTag[i];
+      const conversation = queryClient.getQueryData<t.TConversation>([
+        QueryKeys.conversation,
+        conversationId,
+      ]);
+      if (conversation && conversation.tags) {
+        const updatedConvo = {
+          ...conversation,
+          tags: conversation.tags.map((t) => (t === tag ? newTag : t)),
+        } as t.TConversation;
+        queryClient.setQueryData<t.TConversation>(
+          [QueryKeys.conversation, conversationId],
+          updatedConvo,
+        );
+      }
+    }
+  };
+
+  return { updateTagsInConversation, replaceTagsInAllConversations };
+};
+
+export default useUpdateTagsInConvo;
diff --git a/client/src/localization/languages/Eng.ts b/client/src/localization/languages/Eng.ts
index 57ef7d6d82f..8c39d5db4d7 100644
--- a/client/src/localization/languages/Eng.ts
+++ b/client/src/localization/languages/Eng.ts
@@ -294,7 +294,6 @@ export default {
   com_ui_min_tags: 'Cannot remove more values, a minimum of {0} are required.',
   com_ui_max_tags: 'Maximum number allowed is {0}, using latest values.',
   com_ui_bookmarks: 'Bookmarks',
-  com_ui_bookmarks_rebuild: 'Rebuild',
   com_ui_bookmarks_new: 'New Bookmark',
   com_ui_bookmark_delete_confirm: 'Are you sure you want to delete this bookmark?',
   com_ui_bookmarks_title: 'Title',
@@ -696,8 +695,6 @@ export default {
     'This action will revoke and remove all the API keys that you have provided. You will need to re-enter these credentials to continue using those endpoints.',
   com_nav_info_delete_cache_storage:
     'This action will delete all cached TTS (Text-to-Speech) audio files stored on your device. Cached audio files are used to speed up playback of previously generated TTS audio, but they can consume storage space on your device.',
-  com_nav_info_bookmarks_rebuild:
-    'If the bookmark count is incorrect, please rebuild the bookmark information. The bookmark count will be recalculated and the data will be restored to its correct state.',
   // Command Settings Tab
   com_nav_commands: 'Commands',
   com_nav_commands_tab: 'Command Settings',
diff --git a/client/src/style.css b/client/src/style.css
index 43f86e9ef80..a2b6afdac2f 100644
--- a/client/src/style.css
+++ b/client/src/style.css
@@ -32,7 +32,12 @@ html {
   --text-secondary:var(--gray-600);
   --text-secondary-alt:var(--gray-500);
   --text-tertiary:var(--gray-500);
+  --ring-primary:var(--gray-500);
+  --header-primary:var(--white);
+  --header-hover:var(--gray-50);
+  --header-button-hover:var(--gray-50);
   --surface-active:var(--gray-100);
+  --surface-hover:var(--gray-200);
   --surface-primary:var(--white);
   --surface-primary-alt:var(--white);
   --surface-primary-contrast:var(--gray-100);
@@ -50,7 +55,11 @@ html {
   --text-secondary:var(--gray-300);
   --text-secondary-alt:var(--gray-400);
   --text-tertiary:var(--gray-500);
+  --header-primary:var(--gray-700);
+  --header-hover:var(--gray-600);
+  --header-button-hover:var(--gray-700);
   --surface-active:var(--gray-600);
+  --surface-hover:var(--gray-700);
   --surface-primary:var(--gray-900);
   --surface-primary-alt:var(--gray-850);
   --surface-primary-contrast:var(--gray-850);
diff --git a/client/tailwind.config.cjs b/client/tailwind.config.cjs
index f28699919f2..ab36de54ea6 100644
--- a/client/tailwind.config.cjs
+++ b/client/tailwind.config.cjs
@@ -65,7 +65,12 @@ module.exports = {
         'text-secondary': 'var(--text-secondary)',
         'text-secondary-alt': 'var(--text-secondary-alt)',
         'text-tertiary': 'var(--text-tertiary)',
+        'ring-primary': 'var(--ring-primary)',
+        'header-primary': 'var(--header-primary)',
+        'header-hover': 'var(--header-hover)',
+        'header-button-hover': 'var(--header-button-hover)',
         'surface-active': 'var(--surface-active)',
+        'surface-hover': 'var(--surface-hover)',
         'surface-primary': 'var(--surface-primary)',
         'surface-primary-alt': 'var(--surface-primary-alt)',
         'surface-primary-contrast': 'var(--surface-primary-contrast)',
diff --git a/packages/data-provider/src/react-query/react-query-service.ts b/packages/data-provider/src/react-query/react-query-service.ts
index 37af1258f16..76f2c11c9f4 100644
--- a/packages/data-provider/src/react-query/react-query-service.ts
+++ b/packages/data-provider/src/react-query/react-query-service.ts
@@ -74,21 +74,6 @@ export const useGetSharedMessages = (
   );
 };
 
-export const useGetConversationTags = (
-  config?: UseQueryOptions<t.TConversationTagsResponse>,
-): QueryObserverResult<t.TConversationTagsResponse> => {
-  return useQuery<t.TConversationTagsResponse>(
-    [QueryKeys.conversationTags],
-    () => dataService.getConversationTags(),
-    {
-      refetchOnWindowFocus: false,
-      refetchOnReconnect: false,
-      refetchOnMount: false,
-      ...config,
-    },
-  );
-};
-
 export const useGetUserBalance = (
   config?: UseQueryOptions<string>,
 ): QueryObserverResult<string> => {
diff --git a/packages/data-provider/src/types.ts b/packages/data-provider/src/types.ts
index fce9d0278b7..003f2e3d021 100644
--- a/packages/data-provider/src/types.ts
+++ b/packages/data-provider/src/types.ts
@@ -185,7 +185,6 @@ export type TConversationTagResponse = TConversationTag;
 
 // type for tagging conversation
 export type TTagConversationRequest = {
-  conversationId: string;
   tags: string[];
 };
 export type TTagConversationResponse = string[];