diff --git a/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/DataQualityAndProfiler.spec.ts b/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/DataQualityAndProfiler.spec.ts
index 6ceaa212c3e1..59769ac3d813 100644
--- a/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/DataQualityAndProfiler.spec.ts
+++ b/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/DataQualityAndProfiler.spec.ts
@@ -941,10 +941,13 @@ test('TestCase filters', PLAYWRIGHT_INGESTION_TAG_OBJ, async ({ page }) => {
     await expect(page.locator('[value="tier"]')).not.toBeVisible();
 
     // Apply domain globally
-    await page.locator('[data-testid="domain-dropdown"]').click();
+    await page.getByTestId('domain-dropdown').click();
+
     await page
-      .locator(`li[data-menu-id*='${domain.responseData?.['name']}']`)
+      .getByTestId(`tag-${domain.responseData.fullyQualifiedName}`)
       .click();
+    await page.getByTestId('saveAssociatedTag').click();
+
     await sidebarClick(page, SidebarItem.DATA_QUALITY);
     const getTestCaseList = page.waitForResponse(
       '/api/v1/dataQuality/testCases/search/list?*'
diff --git a/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/Domains.spec.ts b/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/Domains.spec.ts
index 6d644b2f5ab5..219790217f74 100644
--- a/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/Domains.spec.ts
+++ b/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/Domains.spec.ts
@@ -240,11 +240,13 @@ test.describe('Domains', () => {
     await domain.create(apiContext);
     await page.reload();
     await page.getByTestId('domain-dropdown').click();
+
     await page
-      .locator(
-        `[data-menu-id*="${domain.data.name}"] > .ant-dropdown-menu-title-content`
-      )
+      .getByTestId(`tag-${domain.responseData.fullyQualifiedName}`)
       .click();
+    await page.getByTestId('saveAssociatedTag').click();
+
+    await page.waitForLoadState('networkidle');
 
     await redirectToHomePage(page);
 
@@ -566,14 +568,11 @@ test.describe('Domains Rbac', () => {
         .click();
 
       await expect(
-        userPage
-          .getByRole('menuitem', { name: domain1.data.displayName })
-          .locator('span')
+        userPage.getByTestId(`tag-${domain1.responseData.fullyQualifiedName}`)
       ).toBeVisible();
+
       await expect(
-        userPage
-          .getByRole('menuitem', { name: domain3.data.displayName })
-          .locator('span')
+        userPage.getByTestId(`tag-${domain3.responseData.fullyQualifiedName}`)
       ).toBeVisible();
 
       // Visit explore page and verify if domain is passed in the query
diff --git a/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/MyData.spec.ts b/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/MyData.spec.ts
index a71cf6ad1f52..5d2de7cfc77d 100644
--- a/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/MyData.spec.ts
+++ b/openmetadata-ui/src/main/resources/ui/playwright/e2e/Pages/MyData.spec.ts
@@ -89,7 +89,7 @@ test.describe.serial('My Data page', () => {
     // Verify entities
     await verifyEntities(
       page,
-      '/api/v1/search/query?q=*&index=all&from=0&size=25',
+      '/api/v1/search/query?q=*&index=all&from=0&size=25*',
       TableEntities
     );
   });
@@ -105,7 +105,7 @@ test.describe.serial('My Data page', () => {
     // Verify entities
     await verifyEntities(
       page,
-      '/api/v1/search/query?q=*followers:*&index=all&from=0&size=25',
+      '/api/v1/search/query?q=*followers:*&index=all&from=0&size=25*',
       TableEntities
     );
   });
diff --git a/openmetadata-ui/src/main/resources/ui/playwright/utils/domain.ts b/openmetadata-ui/src/main/resources/ui/playwright/utils/domain.ts
index 199add87205a..297bce29856e 100644
--- a/openmetadata-ui/src/main/resources/ui/playwright/utils/domain.ts
+++ b/openmetadata-ui/src/main/resources/ui/playwright/utils/domain.ts
@@ -347,11 +347,8 @@ export const addAssetsToDomain = async (
   await page.getByTestId('save-btn').click();
   await assetsAddRes;
 
-  const countRes = page.waitForResponse(
-    '/api/v1/search/query?q=*&index=all&from=0&size=15'
-  );
   await page.reload();
-  await countRes;
+  await page.waitForLoadState('networkidle');
 
   await checkAssetsCount(page, assets.length);
 };
diff --git a/openmetadata-ui/src/main/resources/ui/playwright/utils/team.ts b/openmetadata-ui/src/main/resources/ui/playwright/utils/team.ts
index 471f607a0ea6..8cb2c836978b 100644
--- a/openmetadata-ui/src/main/resources/ui/playwright/utils/team.ts
+++ b/openmetadata-ui/src/main/resources/ui/playwright/utils/team.ts
@@ -303,7 +303,7 @@ export const verifyAssetsInTeamsPage = async (
     .locator(`a:has-text("${team.data.displayName}")`)
     .click();
 
-  const res = page.waitForResponse('/api/v1/search/query?*size=15');
+  const res = page.waitForResponse('/api/v1/search/query?*size=15*');
   await page.getByTestId('assets').click();
   await res;
 
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/DataAssets/AssetsSelectionModal/AssetSelectionModal.tsx b/openmetadata-ui/src/main/resources/ui/src/components/DataAssets/AssetsSelectionModal/AssetSelectionModal.tsx
index 003edda57f2f..0f6ec886d9bd 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/DataAssets/AssetsSelectionModal/AssetSelectionModal.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/components/DataAssets/AssetsSelectionModal/AssetSelectionModal.tsx
@@ -131,14 +131,6 @@ export const AssetSelectionModal = ({
   >([]);
   const [quickFilterQuery, setQuickFilterQuery] =
     useState<QueryFilterInterface>();
-  const [updatedQueryFilter, setUpdatedQueryFilter] =
-    useState<QueryFilterInterface>(
-      getCombinedQueryFilterObject(queryFilter as QueryFilterInterface, {
-        query: {
-          bool: {},
-        },
-      })
-    );
   const [selectedFilter, setSelectedFilter] = useState<string[]>([]);
   const [filters, setFilters] = useState<ExploreQuickFilterField[]>([]);
 
@@ -237,13 +229,17 @@ export const AssetSelectionModal = ({
 
   useEffect(() => {
     if (open) {
+      const combinedQueryFilter = getCombinedQueryFilterObject(
+        queryFilter as unknown as QueryFilterInterface,
+        quickFilterQuery as QueryFilterInterface
+      );
       fetchEntities({
         index: activeFilter,
         searchText: search,
-        updatedQueryFilter,
+        updatedQueryFilter: combinedQueryFilter,
       });
     }
-  }, [open, activeFilter, search, type, updatedQueryFilter]);
+  }, [open, activeFilter, search, type, quickFilterQuery, queryFilter]);
 
   useEffect(() => {
     if (open) {
@@ -357,18 +353,6 @@ export const AssetSelectionModal = ({
     handleSave();
   }, [type, handleSave]);
 
-  const mergeFilters = useCallback(() => {
-    const res = getCombinedQueryFilterObject(
-      queryFilter as QueryFilterInterface,
-      quickFilterQuery as QueryFilterInterface
-    );
-    setUpdatedQueryFilter(res);
-  }, [queryFilter, quickFilterQuery]);
-
-  useEffect(() => {
-    mergeFilters();
-  }, [quickFilterQuery, queryFilter]);
-
   useEffect(() => {
     const updatedQuickFilters = filters
       .filter((filter) => selectedFilter.includes(filter.key))
@@ -402,22 +386,28 @@ export const AssetSelectionModal = ({
         scrollHeight < 501 &&
         items.length < totalCount
       ) {
+        const combinedQueryFilter = getCombinedQueryFilterObject(
+          queryFilter as unknown as QueryFilterInterface,
+          quickFilterQuery as QueryFilterInterface
+        );
+
         !isLoading &&
           fetchEntities({
             searchText: search,
             page: pageNumber + 1,
             index: activeFilter,
-            updatedQueryFilter,
+            updatedQueryFilter: combinedQueryFilter,
           });
       }
     },
     [
       pageNumber,
-      updatedQueryFilter,
       activeFilter,
       search,
       totalCount,
       items,
+      quickFilterQuery,
+      queryFilter,
       isLoading,
       fetchEntities,
     ]
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/DataProducts/DataProductsDetailsPage/DataProductsDetailsPage.component.tsx b/openmetadata-ui/src/main/resources/ui/src/components/DataProducts/DataProductsDetailsPage/DataProductsDetailsPage.component.tsx
index bf3513bd515e..6647b6711826 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/DataProducts/DataProductsDetailsPage/DataProductsDetailsPage.component.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/components/DataProducts/DataProductsDetailsPage/DataProductsDetailsPage.component.tsx
@@ -391,7 +391,7 @@ const DataProductsDetailsPage = ({
   const handelExtensionUpdate = useCallback(
     async (updatedDataProduct: DataProduct) => {
       await onUpdate({
-        ...(dataProduct as DataProduct),
+        ...dataProduct,
         extension: updatedDataProduct.extension,
       });
     },
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/Domain/DomainDetailsPage/DomainDetailsPage.component.tsx b/openmetadata-ui/src/main/resources/ui/src/components/Domain/DomainDetailsPage/DomainDetailsPage.component.tsx
index 379f6afaed9d..b46180b573c8 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/Domain/DomainDetailsPage/DomainDetailsPage.component.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/components/Domain/DomainDetailsPage/DomainDetailsPage.component.tsx
@@ -74,15 +74,15 @@ import { Domain } from '../../../generated/entity/domains/domain';
 import { ChangeDescription } from '../../../generated/entity/type';
 import { Style } from '../../../generated/type/tagLabel';
 import { useFqn } from '../../../hooks/useFqn';
-import { QueryFilterInterface } from '../../../pages/ExplorePage/ExplorePage.interface';
 import { addDataProducts } from '../../../rest/dataProductAPI';
 import { addDomains } from '../../../rest/domainAPI';
 import { searchData } from '../../../rest/miscAPI';
+import { searchQuery } from '../../../rest/searchAPI';
 import { formatDomainsResponse } from '../../../utils/APIUtils';
 import { getIsErrorMatch } from '../../../utils/CommonUtils';
 import {
+  getQueryFilterForDomain,
   getQueryFilterToExcludeDomainTerms,
-  getQueryFilterToIncludeDomain,
 } from '../../../utils/DomainUtils';
 import { getEntityName } from '../../../utils/EntityUtils';
 import { getEntityVersionByField } from '../../../utils/EntityVersionUtils';
@@ -348,17 +348,17 @@ const DomainDetailsPage = ({
   const fetchDomainAssets = async () => {
     if (domainFqn && !isVersionsView) {
       try {
-        const res = await searchData(
-          '',
-          1,
-          0,
-          `(domain.fullyQualifiedName:"${encodedFqn}") AND !(entityType:"dataProduct")`,
-          '',
-          '',
-          SearchIndex.ALL
-        );
-
-        setAssetCount(res.data.hits.total.value ?? 0);
+        const res = await searchQuery({
+          query: '',
+          pageNumber: 0,
+          pageSize: 0,
+          queryFilter,
+          searchIndex: SearchIndex.ALL,
+          filters: '',
+        });
+
+        const totalCount = res?.hits?.total.value ?? 0;
+        setAssetCount(totalCount);
       } catch (error) {
         setAssetCount(0);
       }
@@ -506,6 +506,10 @@ const DomainDetailsPage = ({
       : []),
   ];
 
+  const queryFilter = useMemo(() => {
+    return getQueryFilterForDomain(domainFqn);
+  }, [domainFqn]);
+
   const tabs = useMemo(() => {
     return [
       {
@@ -586,6 +590,7 @@ const DomainDetailsPage = ({
                           entityFqn={domainFqn}
                           isSummaryPanelOpen={false}
                           permissions={domainPermission}
+                          queryFilter={queryFilter}
                           ref={assetTabRef}
                           type={AssetsOfEntity.DOMAIN}
                           onAddAsset={() => setAssetModalVisible(true)}
@@ -628,6 +633,7 @@ const DomainDetailsPage = ({
     activeTab,
     subDomains,
     isSubDomainsLoading,
+    queryFilter,
   ]);
 
   useEffect(() => {
@@ -824,14 +830,7 @@ const DomainDetailsPage = ({
         <AssetSelectionModal
           entityFqn={domainFqn}
           open={assetModalVisible}
-          queryFilter={
-            isSubDomain
-              ? (getQueryFilterToIncludeDomain(
-                  domain.parent?.fullyQualifiedName ?? '',
-                  domain.fullyQualifiedName ?? ''
-                ) as QueryFilterInterface)
-              : getQueryFilterToExcludeDomainTerms(domainFqn)
-          }
+          queryFilter={getQueryFilterToExcludeDomainTerms(domainFqn)}
           type={AssetsOfEntity.DOMAIN}
           onCancel={() => setAssetModalVisible(false)}
           onSave={handleAssetSave}
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/Glossary/GlossaryTerms/tabs/AssetsTabs.component.tsx b/openmetadata-ui/src/main/resources/ui/src/components/Glossary/GlossaryTerms/tabs/AssetsTabs.component.tsx
index 579be93c4fd4..4581cf02b3ea 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/Glossary/GlossaryTerms/tabs/AssetsTabs.component.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/components/Glossary/GlossaryTerms/tabs/AssetsTabs.component.tsx
@@ -43,10 +43,7 @@ import { ReactComponent as AddPlaceHolderIcon } from '../../../../assets/svg/add
 import { ReactComponent as DeleteIcon } from '../../../../assets/svg/ic-delete.svg';
 import { ReactComponent as FilterIcon } from '../../../../assets/svg/ic-feeds-filter.svg';
 import { ReactComponent as IconDropdown } from '../../../../assets/svg/menu.svg';
-import {
-  AssetsFilterOptions,
-  ASSET_MENU_KEYS,
-} from '../../../../constants/Assets.constants';
+import { ASSET_MENU_KEYS } from '../../../../constants/Assets.constants';
 import { ES_UPDATE_DELAY } from '../../../../constants/constants';
 import { GLOSSARIES_DOCS } from '../../../../constants/docs.constants';
 import { ERROR_PLACEHOLDER_TYPE } from '../../../../enums/common.enum';
@@ -60,6 +57,7 @@ import { usePaging } from '../../../../hooks/paging/usePaging';
 import { useApplicationStore } from '../../../../hooks/useApplicationStore';
 import { useFqn } from '../../../../hooks/useFqn';
 import { Aggregations } from '../../../../interface/search.interface';
+import { QueryFilterInterface } from '../../../../pages/ExplorePage/ExplorePage.interface';
 import {
   getDataProductByName,
   removeAssetsFromDataProduct,
@@ -81,6 +79,7 @@ import {
   getEntityName,
   getEntityReferenceFromEntity,
 } from '../../../../utils/EntityUtils';
+import { getCombinedQueryFilterObject } from '../../../../utils/ExplorePage/ExplorePageUtils';
 import {
   getAggregations,
   getQuickFilterQuery,
@@ -130,17 +129,14 @@ const AssetsTabs = forwardRef(
     ref
   ) => {
     const { theme } = useApplicationStore();
-    const [itemCount, setItemCount] = useState<Record<EntityType, number>>(
-      {} as Record<EntityType, number>
-    );
     const [assetRemoving, setAssetRemoving] = useState(false);
-
     const [activeFilter, _] = useState<SearchIndex[]>([]);
     const { fqn } = useFqn();
     const [isLoading, setIsLoading] = useState(true);
     const [data, setData] = useState<SearchedDataProps['data']>([]);
     const [quickFilterQuery, setQuickFilterQuery] =
-      useState<Record<string, unknown>>();
+      useState<QueryFilterInterface>();
+
     const {
       currentPage,
       pageSize,
@@ -165,7 +161,6 @@ const AssetsTabs = forwardRef(
     const [selectedCard, setSelectedCard] = useState<SourceType>();
     const [visible, setVisible] = useState<boolean>(false);
     const [openKeys, setOpenKeys] = useState<EntityType[]>([]);
-    const [isCountLoading, setIsCountLoading] = useState<boolean>(true);
     const [showDeleteModal, setShowDeleteModal] = useState(false);
     const [assetToDelete, setAssetToDelete] = useState<SourceType>();
     const [activeEntity, setActiveEntity] = useState<
@@ -201,8 +196,7 @@ const AssetsTabs = forwardRef(
       const encodedFqn = getEncodedFqn(escapeESReservedCharacters(entityFqn));
       switch (type) {
         case AssetsOfEntity.DOMAIN:
-          return `(domain.fullyQualifiedName:"${encodedFqn}") AND !(entityType:"dataProduct")`;
-
+          return '';
         case AssetsOfEntity.DATA_PRODUCT:
           return `(dataProducts.fullyQualifiedName:"${encodedFqn}")`;
 
@@ -224,9 +218,11 @@ const AssetsTabs = forwardRef(
       async ({
         index = activeFilter,
         page = currentPage,
+        queryFilter,
       }: {
         index?: SearchIndex[];
         page?: number;
+        queryFilter?: Record<string, unknown>;
       }) => {
         try {
           setIsLoading(true);
@@ -235,23 +231,10 @@ const AssetsTabs = forwardRef(
             pageSize: pageSize,
             searchIndex: index,
             query: `*${searchValue}*`,
-            filters: queryParam,
-            queryFilter: quickFilterQuery,
+            filters: queryParam as string,
+            queryFilter: queryFilter,
           });
           const hits = res.hits.hits as SearchedDataProps['data'];
-          const totalCount = res?.hits?.total.value ?? 0;
-
-          // Find EntityType for selected searchIndex
-          const entityType = AssetsFilterOptions.find((f) =>
-            activeFilter.includes(f.value)
-          )?.label;
-
-          entityType &&
-            setItemCount((prevCount) => ({
-              ...prevCount,
-              [entityType]: totalCount,
-            }));
-
           handlePagingChange({ total: res.hits.total.value ?? 0 });
           setData(hits);
           setAggregations(getAggregations(res?.aggregations));
@@ -262,14 +245,7 @@ const AssetsTabs = forwardRef(
           setIsLoading(false);
         }
       },
-      [
-        activeFilter,
-        currentPage,
-        pageSize,
-        searchValue,
-        queryParam,
-        quickFilterQuery,
-      ]
+      [activeFilter, currentPage, pageSize, searchValue, queryParam]
     );
 
     const hideNotification = () => {
@@ -362,34 +338,6 @@ const AssetsTabs = forwardRef(
       });
     };
 
-    const fetchCountsByEntity = async () => {
-      try {
-        setIsCountLoading(true);
-
-        const res = await searchQuery({
-          query: `*${searchValue}*`,
-          pageNumber: 0,
-          pageSize: 0,
-          queryFilter: quickFilterQuery,
-          searchIndex: SearchIndex.ALL,
-          filters: queryParam,
-        });
-
-        const buckets = res.aggregations[`index_count`].buckets;
-        const counts: Record<string, number> = {};
-        buckets.forEach((item) => {
-          if (item) {
-            counts[item.key ?? ''] = item.doc_count;
-          }
-        });
-        setItemCount(counts as Record<EntityType, number>);
-      } catch (err) {
-        showErrorToast(err as AxiosError);
-      } finally {
-        setIsCountLoading(false);
-      }
-    };
-
     const onAssetRemove = useCallback(
       async (assetsData: SourceType[]) => {
         if (!activeEntity) {
@@ -465,8 +413,6 @@ const AssetsTabs = forwardRef(
     }, [selectedItems]);
 
     useEffect(() => {
-      fetchCountsByEntity();
-
       return () => {
         onAssetClick?.(undefined);
         hideNotification();
@@ -715,7 +661,6 @@ const AssetsTabs = forwardRef(
       openKeys,
       visible,
       currentPage,
-      itemCount,
       onOpenChange,
       handleAssetButtonVisibleChange,
       onSelectAll,
@@ -748,11 +693,24 @@ const AssetsTabs = forwardRef(
     ]);
 
     useEffect(() => {
+      const newFilter = getCombinedQueryFilterObject(
+        queryFilter as unknown as QueryFilterInterface,
+        quickFilterQuery as QueryFilterInterface
+      );
+
       fetchAssets({
         index: isEmpty(activeFilter) ? [SearchIndex.ALL] : activeFilter,
         page: currentPage,
+        queryFilter: newFilter,
       });
-    }, [activeFilter, currentPage, pageSize, searchValue, quickFilterQuery]);
+    }, [
+      activeFilter,
+      currentPage,
+      pageSize,
+      searchValue,
+      queryFilter,
+      quickFilterQuery,
+    ]);
 
     useEffect(() => {
       const dropdownItems = getAssetsPageQuickFilters(type);
@@ -801,7 +759,6 @@ const AssetsTabs = forwardRef(
             index: isEmpty(activeFilter) ? [SearchIndex.ALL] : activeFilter,
             page: 1,
           });
-        fetchCountsByEntity();
       },
       closeSummaryPanel() {
         setSelectedCard(undefined);
@@ -877,7 +834,7 @@ const AssetsTabs = forwardRef(
             </Row>
           )}
 
-          {isLoading || isCountLoading ? (
+          {isLoading ? (
             <Row className="p-lg" gutter={[0, 16]}>
               <Col span={24}>
                 <Skeleton />
@@ -908,7 +865,7 @@ const AssetsTabs = forwardRef(
             }
           />
         </div>
-        {!(isLoading || isCountLoading) && (
+        {!isLoading && (
           <div
             className={classNames('asset-tab-delete-notification', {
               visible: selectedItems.size > 0,
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/Glossary/GlossaryTerms/tabs/AssetsTabs.interface.ts b/openmetadata-ui/src/main/resources/ui/src/components/Glossary/GlossaryTerms/tabs/AssetsTabs.interface.ts
index 41c39355603a..9f458a943a2f 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/Glossary/GlossaryTerms/tabs/AssetsTabs.interface.ts
+++ b/openmetadata-ui/src/main/resources/ui/src/components/Glossary/GlossaryTerms/tabs/AssetsTabs.interface.ts
@@ -36,7 +36,7 @@ export interface AssetsTabsProps {
   isSummaryPanelOpen: boolean;
   isEntityDeleted?: boolean;
   type?: AssetsOfEntity;
-  queryFilter?: string;
+  queryFilter?: string | Record<string, unknown>;
   noDataPlaceholder?: string | AssetNoDataPlaceholderProps;
 }
 
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/NavBar/NavBar.tsx b/openmetadata-ui/src/main/resources/ui/src/components/NavBar/NavBar.tsx
index 70c0e31606cc..80bd336ee683 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/NavBar/NavBar.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/components/NavBar/NavBar.tsx
@@ -57,6 +57,7 @@ import { GlobalSettingsMenuCategory } from '../../constants/GlobalSettings.const
 import { HELP_ITEMS_ENUM } from '../../constants/Navbar.constants';
 import { useWebSocketConnector } from '../../context/WebSocketProvider/WebSocketProvider';
 import { EntityTabs, EntityType } from '../../enums/entity.enum';
+import { EntityReference } from '../../generated/entity/type';
 import { BackgroundJob, JobType } from '../../generated/jobs/backgroundJob';
 import { useApplicationStore } from '../../hooks/useApplicationStore';
 import useCustomLocation from '../../hooks/useCustomLocation/useCustomLocation';
@@ -94,6 +95,7 @@ import { ActivityFeedTabs } from '../ActivityFeed/ActivityFeedTab/ActivityFeedTa
 import SearchOptions from '../AppBar/SearchOptions';
 import Suggestions from '../AppBar/Suggestions';
 import CmdKIcon from '../common/CmdKIcon/CmdKIcon.component';
+import DomainSelectableList from '../common/DomainSelectableList/DomainSelectableList.component';
 import { useEntityExportModalProvider } from '../Entity/EntityExportModalProvider/EntityExportModalProvider.component';
 import { CSVExportWebsocketResponse } from '../Entity/EntityExportModalProvider/EntityExportModalProvider.interface';
 import WhatsNewModal from '../Modals/WhatsNewModal/WhatsNewModal';
@@ -124,12 +126,8 @@ const NavBar = ({
     useState(false);
   const location = useCustomLocation();
   const history = useHistory();
-  const {
-    domainOptions,
-    activeDomain,
-    activeDomainEntityRef,
-    updateActiveDomain,
-  } = useDomainStore();
+  const { activeDomain, activeDomainEntityRef, updateActiveDomain } =
+    useDomainStore();
   const { t } = useTranslation();
   const { Option } = Select;
   const searchRef = useRef<InputRef>(null);
@@ -142,6 +140,8 @@ const NavBar = ({
   const [activeTab, setActiveTab] = useState<string>('Task');
   const [isFeatureModalOpen, setIsFeatureModalOpen] = useState<boolean>(false);
   const [version, setVersion] = useState<string>();
+  const [isDomainDropdownOpen, setIsDomainDropdownOpen] = useState(false);
+  const domainContainerRef = useRef<HTMLDivElement>(null);
 
   const fetchOMVersion = async () => {
     try {
@@ -420,6 +420,30 @@ const NavBar = ({
     fetchOMVersion();
   }, []);
 
+  useEffect(() => {
+    const handleClickOutside = (event: MouseEvent) => {
+      // Check if click is inside the domain-select-popover
+      const isClickInPopover = (event.target as Element)?.closest(
+        '.domain-select-popover'
+      );
+
+      if (
+        domainContainerRef.current &&
+        !domainContainerRef.current.contains(event.target as Node) &&
+        !isClickInPopover &&
+        isDomainDropdownOpen
+      ) {
+        setIsDomainDropdownOpen(false);
+      }
+    };
+
+    document.addEventListener('mousedown', handleClickOutside);
+
+    return () => {
+      document.removeEventListener('mousedown', handleClickOutside);
+    };
+  }, [isDomainDropdownOpen]);
+
   useEffect(() => {
     const targetNode = document.body;
     targetNode.addEventListener('keydown', handleKeyPress);
@@ -427,10 +451,14 @@ const NavBar = ({
     return () => targetNode.removeEventListener('keydown', handleKeyPress);
   }, [handleKeyPress]);
 
-  const handleDomainChange = useCallback(({ key }) => {
-    updateActiveDomain(key);
-    refreshPage();
-  }, []);
+  const handleDomainChange = useCallback(
+    async (domain: EntityReference | EntityReference[]) => {
+      updateActiveDomain(domain as EntityReference);
+      setIsDomainDropdownOpen(false);
+      refreshPage();
+    },
+    []
+  );
 
   const handleLanguageChange = useCallback(({ key }) => {
     i18next.changeLanguage(key);
@@ -552,37 +580,38 @@ const NavBar = ({
         </div>
 
         <Space align="center" size={24}>
-          <Dropdown
-            className="cursor-pointer"
-            menu={{
-              items: domainOptions,
-              onClick: handleDomainChange,
-              className: 'domain-dropdown-menu',
-              defaultSelectedKeys: [activeDomain],
-            }}
-            placement="bottomRight"
-            trigger={['click']}>
-            <Row data-testid="domain-dropdown" gutter={6}>
-              <Col className="flex-center">
-                <DomainIcon
-                  className="d-flex text-base-color"
-                  height={24}
-                  name="domain"
-                  width={24}
-                />
-              </Col>
-              <Col className="flex-center">
-                <Typography.Text>
-                  {activeDomainEntityRef
-                    ? getEntityName(activeDomainEntityRef)
-                    : activeDomain}
-                </Typography.Text>
-              </Col>
-              <Col className="flex-center">
-                <DropDownIcon height={14} width={14} />
-              </Col>
-            </Row>
-          </Dropdown>
+          <div className="d-flex" ref={domainContainerRef}>
+            <DomainSelectableList
+              hasPermission
+              popoverProps={{ open: isDomainDropdownOpen }}
+              selectedDomain={activeDomainEntityRef}
+              onCancel={() => setIsDomainDropdownOpen(false)}
+              onUpdate={handleDomainChange}>
+              <Row
+                data-testid="domain-dropdown"
+                gutter={6}
+                onClick={() => setIsDomainDropdownOpen(!isDomainDropdownOpen)}>
+                <Col className="flex-center">
+                  <DomainIcon
+                    className="d-flex text-base-color"
+                    height={24}
+                    name="domain"
+                    width={24}
+                  />
+                </Col>
+                <Col className="flex-center">
+                  <Typography.Text>
+                    {activeDomainEntityRef
+                      ? getEntityName(activeDomainEntityRef)
+                      : activeDomain}
+                  </Typography.Text>
+                </Col>
+                <Col className="flex-center">
+                  <DropDownIcon height={14} width={14} />
+                </Col>
+              </Row>
+            </DomainSelectableList>
+          </div>
 
           <Dropdown
             className="cursor-pointer"
@@ -603,7 +632,6 @@ const NavBar = ({
               </Col>
             </Row>
           </Dropdown>
-
           <Dropdown
             destroyPopupOnHide
             className="cursor-pointer"
@@ -634,7 +662,6 @@ const NavBar = ({
               </Badge>
             </Tooltip>
           </Dropdown>
-
           <Dropdown
             menu={{
               items: getHelpDropdownItems(version),
@@ -652,7 +679,6 @@ const NavBar = ({
               />
             </Tooltip>
           </Dropdown>
-
           <UserProfileIcon />
         </Space>
       </div>
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableList/DomainSelectableList.component.tsx b/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableList/DomainSelectableList.component.tsx
index b6c64ad0262a..02ec15d89a30 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableList/DomainSelectableList.component.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableList/DomainSelectableList.component.tsx
@@ -58,6 +58,7 @@ const DomainSelectableList = ({
   popoverProps,
   selectedDomain,
   multiple = false,
+  onCancel,
 }: DomainSelectableListProps) => {
   const { t } = useTranslation();
   const [popupVisible, setPopupVisible] = useState(false);
@@ -72,6 +73,14 @@ const DomainSelectableList = ({
     return [];
   }, [selectedDomain]);
 
+  const initialDomains = useMemo(() => {
+    if (selectedDomain) {
+      return Array.isArray(selectedDomain) ? selectedDomain : [selectedDomain];
+    }
+
+    return [];
+  }, [selectedDomain]);
+
   const handleUpdate = useCallback(
     async (domains: EntityReference[]) => {
       if (multiple) {
@@ -85,6 +94,11 @@ const DomainSelectableList = ({
     [onUpdate, multiple]
   );
 
+  const handleCancel = useCallback(() => {
+    setPopupVisible(false);
+    onCancel?.();
+  }, [onCancel]);
+
   return (
     // Used Button to stop click propagation event anywhere in the component to parent
     // TeamDetailV1 collapsible panel
@@ -95,10 +109,11 @@ const DomainSelectableList = ({
         destroyTooltipOnHide
         content={
           <DomainSelectablTree
+            initialDomains={initialDomains}
             isMultiple={multiple}
             value={selectedDomainsList as string[]}
             visible={popupVisible || Boolean(popoverProps?.open)}
-            onCancel={() => setPopupVisible(false)}
+            onCancel={handleCancel}
             onSubmit={handleUpdate}
           />
         }
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableList/DomainSelectableList.interface.ts b/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableList/DomainSelectableList.interface.ts
index 9962a54c8a3f..0fcd98a5055b 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableList/DomainSelectableList.interface.ts
+++ b/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableList/DomainSelectableList.interface.ts
@@ -21,4 +21,5 @@ export interface DomainSelectableListProps {
   popoverProps?: PopoverProps;
   selectedDomain?: EntityReference | EntityReference[];
   multiple?: boolean;
+  onCancel?: () => void;
 }
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableTree/DomainSelectableTree.interface.ts b/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableTree/DomainSelectableTree.interface.ts
index b3c140eda20f..076576357ee8 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableTree/DomainSelectableTree.interface.ts
+++ b/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableTree/DomainSelectableTree.interface.ts
@@ -19,6 +19,7 @@ export interface DomainSelectableTreeProps {
   visible: boolean;
   onCancel: () => void;
   isMultiple?: boolean;
+  initialDomains?: EntityReference[];
 }
 
 export type TreeListItem = Omit<DefaultOptionType, 'label'>;
diff --git a/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableTree/DomainSelectableTree.tsx b/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableTree/DomainSelectableTree.tsx
index f6619142bb53..950242adf193 100644
--- a/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableTree/DomainSelectableTree.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/components/common/DomainSelectableTree/DomainSelectableTree.tsx
@@ -29,7 +29,10 @@ import { EntityType } from '../../../enums/entity.enum';
 import { Domain } from '../../../generated/entity/domains/domain';
 import { EntityReference } from '../../../generated/tests/testCase';
 import { listDomainHierarchy, searchDomains } from '../../../rest/domainAPI';
-import { convertDomainsToTreeOptions } from '../../../utils/DomainUtils';
+import {
+  convertDomainsToTreeOptions,
+  isDomainExist,
+} from '../../../utils/DomainUtils';
 import { getEntityReferenceFromEntity } from '../../../utils/EntityUtils';
 import { findItemByFqn } from '../../../utils/GlossaryUtils';
 import {
@@ -50,6 +53,7 @@ const DomainSelectablTree: FC<DomainSelectableTreeProps> = ({
   visible,
   onCancel,
   isMultiple = false,
+  initialDomains,
 }) => {
   const { t } = useTranslation();
   const [treeData, setTreeData] = useState<TreeListItem[]>([]);
@@ -59,14 +63,30 @@ const DomainSelectablTree: FC<DomainSelectableTreeProps> = ({
   const [selectedDomains, setSelectedDomains] = useState<Domain[]>([]);
   const [searchTerm, setSearchTerm] = useState<string>('');
 
-  const handleSave = async () => {
-    setIsSubmitLoading(true);
-    if (isMultiple) {
+  const handleMultiDomainSave = async () => {
+    const selectedFqns = selectedDomains
+      .map((domain) => domain.fullyQualifiedName)
+      .sort((a, b) => (a ?? '').localeCompare(b ?? ''));
+    const initialFqns = (value as string[]).sort((a, b) => a.localeCompare(b));
+
+    if (JSON.stringify(selectedFqns) !== JSON.stringify(initialFqns)) {
+      setIsSubmitLoading(true);
       const domains1 = selectedDomains.map((item) =>
         getEntityReferenceFromEntity<Domain>(item, EntityType.DOMAIN)
       );
       await onSubmit(domains1);
+      setIsSubmitLoading(false);
     } else {
+      onCancel();
+    }
+  };
+
+  const handleSingleDomainSave = async () => {
+    const selectedFqn = selectedDomains[0]?.fullyQualifiedName;
+    const initialFqn = value?.[0];
+
+    if (selectedFqn !== initialFqn) {
+      setIsSubmitLoading(true);
       let retn: EntityReference[] = [];
       if (selectedDomains.length > 0) {
         const domain = getEntityReferenceFromEntity<Domain>(
@@ -76,23 +96,35 @@ const DomainSelectablTree: FC<DomainSelectableTreeProps> = ({
         retn = [domain];
       }
       await onSubmit(retn);
+      setIsSubmitLoading(false);
+    } else {
+      onCancel();
     }
-
-    setIsSubmitLoading(false);
   };
 
   const fetchAPI = useCallback(async () => {
     try {
       setIsLoading(true);
       const data = await listDomainHierarchy({ limit: 100 });
-      setTreeData(convertDomainsToTreeOptions(data.data, 0, isMultiple));
-      setDomains(data.data);
+
+      const combinedData = [...data.data];
+      initialDomains?.forEach((selectedDomain) => {
+        const exists = combinedData.some((domain: Domain) =>
+          isDomainExist(domain, selectedDomain.fullyQualifiedName ?? '')
+        );
+        if (!exists) {
+          combinedData.push(selectedDomain as unknown as Domain);
+        }
+      });
+
+      setTreeData(convertDomainsToTreeOptions(combinedData, 0, isMultiple));
+      setDomains(combinedData);
     } catch (error) {
       showErrorToast(error as AxiosError);
     } finally {
       setIsLoading(false);
     }
-  }, []);
+  }, [initialDomains]);
 
   const onSelect = (selectedKeys: React.Key[]) => {
     if (!isMultiple) {
@@ -120,13 +152,11 @@ const DomainSelectablTree: FC<DomainSelectableTreeProps> = ({
 
       setSelectedDomains(selectedData);
     } else {
-      setSelectedDomains([
-        findItemByFqn(
-          domains,
-          checked.checked as unknown as string,
-          false
-        ) as Domain,
-      ]);
+      const selected = checked.checked.map(
+        (item) => findItemByFqn(domains, item as string, false) as Domain
+      );
+
+      setSelectedDomains(selected);
     }
   };
 
@@ -217,7 +247,7 @@ const DomainSelectablTree: FC<DomainSelectableTreeProps> = ({
           loading={isSubmitLoading}
           size="small"
           type="default"
-          onClick={() => handleSave()}>
+          onClick={isMultiple ? handleMultiDomainSave : handleSingleDomainSave}>
           {t('label.update')}
         </Button>
         <Button
diff --git a/openmetadata-ui/src/main/resources/ui/src/hooks/useDomainStore.ts b/openmetadata-ui/src/main/resources/ui/src/hooks/useDomainStore.ts
index ffc93273ea81..4e3d39885aaf 100644
--- a/openmetadata-ui/src/main/resources/ui/src/hooks/useDomainStore.ts
+++ b/openmetadata-ui/src/main/resources/ui/src/hooks/useDomainStore.ts
@@ -19,15 +19,12 @@ import {
 import { Domain } from '../generated/entity/domains/domain';
 import { EntityReference } from '../generated/entity/type';
 import { DomainStore } from '../interface/store.interface';
-import {
-  getDomainOptions,
-  initializeDomainEntityRef,
-} from '../utils/DomainUtils';
+import { getDomainOptions } from '../utils/DomainUtils';
 import { useApplicationStore } from './useApplicationStore';
 
 export const useDomainStore = create<DomainStore>()(
   persist(
-    (set, get) => ({
+    (set) => ({
       domains: [],
       userDomains: [],
       domainLoading: false,
@@ -55,19 +52,10 @@ export const useDomainStore = create<DomainStore>()(
           ),
         });
       },
-      updateActiveDomain: (activeDomainKey: string) => {
-        const currentUser = useApplicationStore.getState().currentUser;
-        const { isAdmin = false, domains = [] } = currentUser ?? {};
-        const userDomainsObj = isAdmin ? [] : domains;
-        const allDomains = isAdmin ? get().domains : userDomainsObj;
-
-        const activeDomainEntityRef = initializeDomainEntityRef(
-          allDomains as EntityReference[],
-          activeDomainKey
-        );
+      updateActiveDomain: (domain?: EntityReference) => {
         set({
-          activeDomain: activeDomainKey,
-          activeDomainEntityRef,
+          activeDomain: domain?.fullyQualifiedName ?? DEFAULT_DOMAIN_VALUE,
+          activeDomainEntityRef: domain,
         });
       },
       updateDomainLoading: (loading: boolean) => {
@@ -88,19 +76,9 @@ export const useDomainStore = create<DomainStore>()(
     {
       name: DOMAIN_STORAGE_KEY,
       partialize: (state) => {
-        const currentUser = useApplicationStore.getState().currentUser;
-        const { isAdmin = false, domains = [] } = currentUser ?? {};
-        const userDomainsObj = isAdmin ? [] : domains;
-        const allDomains = isAdmin ? state.domains : userDomainsObj;
-
-        const activeDomainEntityRef = initializeDomainEntityRef(
-          allDomains as EntityReference[],
-          state.activeDomain
-        );
-
         return {
           activeDomain: state.activeDomain,
-          activeDomainEntityRef,
+          activeDomainEntityRef: state.activeDomainEntityRef,
         };
       },
     }
diff --git a/openmetadata-ui/src/main/resources/ui/src/interface/store.interface.ts b/openmetadata-ui/src/main/resources/ui/src/interface/store.interface.ts
index 575919b84d0d..d154d7f98498 100644
--- a/openmetadata-ui/src/main/resources/ui/src/interface/store.interface.ts
+++ b/openmetadata-ui/src/main/resources/ui/src/interface/store.interface.ts
@@ -91,7 +91,7 @@ export interface DomainStore {
   activeDomainEntityRef?: EntityReference;
   domainOptions: ItemType[];
   updateDomains: (domainsArr: Domain[], selectDefault?: boolean) => void;
-  updateActiveDomain: (activeDomainKey: string) => void;
+  updateActiveDomain: (domain: EntityReference) => void;
   setDomains: (domains: Domain[]) => void;
   setUserDomains: (userDomainsArr: EntityReference[]) => void;
   updateDomainLoading: (loading: boolean) => void;
diff --git a/openmetadata-ui/src/main/resources/ui/src/utils/DomainUtils.test.tsx b/openmetadata-ui/src/main/resources/ui/src/utils/DomainUtils.test.tsx
index b011adbe7215..98748ad49cd3 100644
--- a/openmetadata-ui/src/main/resources/ui/src/utils/DomainUtils.test.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/utils/DomainUtils.test.tsx
@@ -10,8 +10,8 @@
  *  See the License for the specific language governing permissions and
  *  limitations under the License.
  */
-import { DomainType } from '../generated/entity/domains/domain';
-import { getDomainOptions } from '../utils/DomainUtils';
+import { Domain, DomainType } from '../generated/entity/domains/domain';
+import { getDomainOptions, isDomainExist } from '../utils/DomainUtils';
 
 describe('getDomainOptions function', () => {
   const domains = [
@@ -36,3 +36,114 @@ describe('getDomainOptions function', () => {
     });
   });
 });
+
+describe('isDomainExist', () => {
+  it('should return true if domain fqn matches directly', () => {
+    const domain = {
+      id: '1',
+      name: 'Parent',
+      fullyQualifiedName: 'parent',
+    } as Domain;
+
+    expect(isDomainExist(domain, 'parent')).toBe(true);
+  });
+
+  it('should return true if domain fqn exists in children', () => {
+    const domain = {
+      id: '1',
+      name: 'Parent',
+      fullyQualifiedName: 'parent',
+      children: [
+        {
+          id: '2',
+          name: 'Child',
+          fullyQualifiedName: 'parent.child',
+        },
+      ],
+    } as Domain;
+
+    expect(isDomainExist(domain, 'parent.child')).toBe(true);
+  });
+
+  it('should return true if domain fqn exists in nested children', () => {
+    const domain = {
+      id: '1',
+      name: 'Parent',
+      fullyQualifiedName: 'parent',
+      description: 'test',
+      domainType: DomainType.Aggregate,
+      children: [
+        {
+          id: '2',
+          name: 'Child',
+          fullyQualifiedName: 'parent.child',
+          children: [
+            {
+              id: '3',
+              name: 'GrandChild',
+              fullyQualifiedName: 'parent.child.grandchild',
+            },
+          ],
+        },
+      ],
+    } as unknown as Domain;
+
+    expect(isDomainExist(domain, 'parent.child.grandchild')).toBe(true);
+  });
+
+  it('should return false if domain fqn does not exist', () => {
+    const domain = {
+      id: '1',
+      name: 'Parent',
+      fullyQualifiedName: 'parent',
+      children: [
+        {
+          id: '2',
+          name: 'Child',
+          fullyQualifiedName: 'parent.child',
+        },
+      ],
+    } as Domain;
+
+    expect(isDomainExist(domain, 'nonexistent')).toBe(false);
+  });
+
+  it('should handle domain without children', () => {
+    const domain = {
+      id: '1',
+      name: 'Parent',
+      fullyQualifiedName: 'parent',
+      children: [],
+      description: 'test',
+      domainType: DomainType.Aggregate,
+    } as unknown as Domain;
+
+    expect(isDomainExist(domain, 'parent.child')).toBe(false);
+  });
+
+  it('should handle domain with description and type', () => {
+    const domain = {
+      id: '1',
+      name: 'Parent',
+      fullyQualifiedName: 'parent',
+      description: 'test description',
+      domainType: DomainType.Aggregate,
+      children: [
+        {
+          id: '2',
+          name: 'Child',
+          fullyQualifiedName: 'parent.child',
+          children: [
+            {
+              id: '3',
+              name: 'GrandChild',
+              fullyQualifiedName: 'parent.child.grandchild',
+            },
+          ],
+        },
+      ],
+    } as unknown as Domain;
+
+    expect(isDomainExist(domain, 'parent.child.grandchild')).toBe(true);
+  });
+});
diff --git a/openmetadata-ui/src/main/resources/ui/src/utils/DomainUtils.tsx b/openmetadata-ui/src/main/resources/ui/src/utils/DomainUtils.tsx
index 6bc8b5f030c4..f79e50eae5e5 100644
--- a/openmetadata-ui/src/main/resources/ui/src/utils/DomainUtils.tsx
+++ b/openmetadata-ui/src/main/resources/ui/src/utils/DomainUtils.tsx
@@ -188,6 +188,21 @@ export const getQueryFilterToExcludeDomainTerms = (
   };
 };
 
+export const getQueryFilterForDomain = (domainFqn: string) => ({
+  query: {
+    bool: {
+      must: [{ prefix: { 'domain.fullyQualifiedName': domainFqn } }],
+      must_not: [
+        {
+          term: {
+            entityType: 'dataProduct',
+          },
+        },
+      ],
+    },
+  },
+});
+
 // Domain type description which will be shown in tooltip
 export const domainTypeTooltipDataRender = () => (
   <Space direction="vertical" size="middle">
@@ -331,3 +346,26 @@ export const convertDomainsToTreeOptions = (
 
   return treeData;
 };
+
+/**
+ * Recursively checks if a domain exists in the hierarchy
+ * @param domain The domain to search in
+ * @param searchDomain The domain to search for
+ * @returns boolean indicating if the domain exists
+ */
+export const isDomainExist = (
+  domain: Domain,
+  searchDomainFqn: string
+): boolean => {
+  if (domain.fullyQualifiedName === searchDomainFqn) {
+    return true;
+  }
+
+  if (domain.children?.length) {
+    return domain.children.some((child) =>
+      isDomainExist(child as unknown as Domain, searchDomainFqn)
+    );
+  }
+
+  return false;
+};