diff --git a/web/core/components/workspace/sidebar/favorites/favorite-folder.tsx b/web/core/components/workspace/sidebar/favorites/favorite-folder.tsx
index 6fc2c1b524..8806b2d081 100644
--- a/web/core/components/workspace/sidebar/favorites/favorite-folder.tsx
+++ b/web/core/components/workspace/sidebar/favorites/favorite-folder.tsx
@@ -27,6 +27,7 @@ import { CustomMenu, Tooltip, DropIndicator, FavoriteFolderIcon, DragHandle } fr
 import { cn } from "@/helpers/common.helper";
 // hooks
 import { useAppTheme } from "@/hooks/store";
+import { useFavorite } from "@/hooks/store/use-favorite";
 import { usePlatformOS } from "@/hooks/use-platform-os";
 // constants
 import { FavoriteRoot } from "./favorite-items";
@@ -45,7 +46,7 @@ export const FavoriteFolder: React.FC<Props> = (props) => {
   const { favorite, handleRemoveFromFavorites, isLastChild, handleDrop } = props;
   // store hooks
   const { sidebarCollapsed: isSidebarCollapsed } = useAppTheme();
-
+  const { getGroupedFavorites } = useFavorite();
   const { isMobile } = usePlatformOS();
   const { workspaceSlug } = useParams();
   // states
@@ -58,6 +59,12 @@ export const FavoriteFolder: React.FC<Props> = (props) => {
   const actionSectionRef = useRef<HTMLDivElement | null>(null);
   const elementRef = useRef<HTMLDivElement | null>(null);
 
+  useEffect(() => {
+    if (favorite.children === undefined && workspaceSlug) {
+      getGroupedFavorites(workspaceSlug.toString(), favorite.id);
+    }
+  }, [favorite.id, favorite.children, workspaceSlug, getGroupedFavorites]);
+
   useEffect(() => {
     const element = elementRef.current;
 
@@ -123,7 +130,7 @@ export const FavoriteFolder: React.FC<Props> = (props) => {
       })
     );
     // eslint-disable-next-line react-hooks/exhaustive-deps
-  }, [isDragging, favorite.id]);
+  }, [isDragging, favorite.id, isLastChild, favorite.id]);
 
   useOutsideClickDetector(actionSectionRef, () => setIsMenuActive(false));
 
diff --git a/web/core/components/workspace/sidebar/favorites/favorite-items/root.tsx b/web/core/components/workspace/sidebar/favorites/favorite-items/root.tsx
index 2ae16528ae..49931802e8 100644
--- a/web/core/components/workspace/sidebar/favorites/favorite-items/root.tsx
+++ b/web/core/components/workspace/sidebar/favorites/favorite-items/root.tsx
@@ -131,7 +131,7 @@ export const FavoriteRoot: FC<Props> = observer((props) => {
       })
     );
     // eslint-disable-next-line react-hooks/exhaustive-deps
-  }, [elementRef?.current, isDragging]);
+  }, [elementRef?.current, isDragging, isLastChild, favorite.id]);
 
   useOutsideClickDetector(actionSectionRef, () => setIsMenuActive(false));
 
diff --git a/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx b/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
index 8aea968eca..6773e3a64b 100644
--- a/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
+++ b/web/core/components/workspace/sidebar/favorites/favorites-menu.tsx
@@ -87,33 +87,27 @@ export const SidebarFavoritesMenu = observer(() => {
     const sourceData = source.data as TargetData;
 
     if (!sourceData.id) return;
-
     if (isFolder) {
       // handle move to a new parent folder if dropped on a folder
       if (parentId && parentId !== sourceData.parentId) {
-        handleMoveToFolder(sourceData.id, parentId);
+        handleMoveToFolder(sourceData.id, parentId); /**parent id  */
       }
-      //handle remove from folder if dropped outside of the folder
-      if (parentId && parentId !== sourceData.parentId && sourceData.isChild) {
-        handleRemoveFromFavoritesFolder(sourceData.id);
-      }
-
       // handle reordering at root level
       if (droppedFavId) {
         if (instruction != "make-child") {
-          handleReorder(sourceData.id, droppedFavId, instruction);
+          handleReorder(sourceData.id, droppedFavId, instruction); /** sequence */
         }
       }
     } else {
       //handling reordering for favorites
       if (droppedFavId) {
-        handleReorder(sourceData.id, droppedFavId, instruction);
+        handleReorder(sourceData.id, droppedFavId, instruction); /** sequence */
       }
+    }
 
-      // handle removal from folder if dropped outside a folder
-      if (!parentId && sourceData.isChild) {
-        handleRemoveFromFavoritesFolder(sourceData.id);
-      }
+    /**remove if dropped outside and source is a child */
+    if (!parentId && sourceData.isChild) {
+      handleRemoveFromFavoritesFolder(sourceData.id); /**parent null */
     }
   };
 
diff --git a/web/core/store/favorite.store.ts b/web/core/store/favorite.store.ts
index 3f4f636d34..a588f2af3b 100644
--- a/web/core/store/favorite.store.ts
+++ b/web/core/store/favorite.store.ts
@@ -174,23 +174,14 @@ export class FavoriteStore implements IFavoriteStore {
    * @returns Promise<void>
    */
   moveFavoriteToFolder = async (workspaceSlug: string, favoriteId: string, data: Partial<IFavorite>) => {
-    const oldParent = this.favoriteMap[favoriteId].parent;
     try {
+      await this.favoriteService.updateFavorite(workspaceSlug, favoriteId, data);
       runInAction(() => {
         // add parent of the favorite
         set(this.favoriteMap, [favoriteId, "parent"], data.parent);
       });
-      await this.favoriteService.updateFavorite(workspaceSlug, favoriteId, data);
     } catch (error) {
-      console.error("Failed to move favorite from favorite store");
-
-      // revert the changes
-      runInAction(() => {
-        if (!data.parent) return;
-
-        // revert the parent
-        set(this.favoriteMap, [favoriteId, "parent"], oldParent);
-      });
+      console.error("Failed to move favorite to folder", error);
       throw error;
     }
   };
@@ -201,7 +192,6 @@ export class FavoriteStore implements IFavoriteStore {
     destinationId: string,
     edge: string | undefined
   ) => {
-    const initialSequence = this.favoriteMap[favoriteId].sequence;
     try {
       let resultSequence = 10000;
       if (edge) {
@@ -221,35 +211,27 @@ export class FavoriteStore implements IFavoriteStore {
           }
         }
       }
+
+      await this.favoriteService.updateFavorite(workspaceSlug, favoriteId, { sequence: resultSequence });
+
       runInAction(() => {
         set(this.favoriteMap, [favoriteId, "sequence"], resultSequence);
       });
-
-      await this.favoriteService.updateFavorite(workspaceSlug, favoriteId, { sequence: resultSequence });
     } catch (error) {
       console.error("Failed to move favorite folder");
-      runInAction(() => {
-        set(this.favoriteMap, [favoriteId, "sequence"], initialSequence);
-        throw error;
-      });
+      throw error;
     }
   };
 
   removeFromFavoriteFolder = async (workspaceSlug: string, favoriteId: string) => {
-    const parent = this.favoriteMap[favoriteId].parent;
     try {
+      await this.favoriteService.updateFavorite(workspaceSlug, favoriteId, { parent: null });
       runInAction(() => {
         //remove parent
         set(this.favoriteMap, [favoriteId, "parent"], null);
       });
-      await this.favoriteService.updateFavorite(workspaceSlug, favoriteId, { parent: null });
     } catch (error) {
       console.error("Failed to move favorite");
-      runInAction(() => {
-        set(this.favoriteMap, [favoriteId, "parent"], parent);
-
-        throw error;
-      });
       throw error;
     }
   };
@@ -384,7 +366,7 @@ export class FavoriteStore implements IFavoriteStore {
           set(this.favoriteMap, [favorite.id], favorite);
           this.favoriteIds.push(favorite.id);
           this.favoriteIds = uniqBy(this.favoriteIds, (id) => id);
-          favorite.entity_identifier && set(this.entityMap, [favorite.entity_identifier], favorite);
+          if (favorite.entity_identifier) set(this.entityMap, [favorite.entity_identifier], favorite);
         });
       });