diff --git a/backend/ee-repo-ref.txt b/backend/ee-repo-ref.txt
index 8e0364f544..4ba6ebd5b8 100644
--- a/backend/ee-repo-ref.txt
+++ b/backend/ee-repo-ref.txt
@@ -1 +1 @@
-868ccad87afb804fe22818ecd3d5a091199bcdbf
\ No newline at end of file
+19b5681d1985ee5214f768e3b818faf6ca7d20b2
diff --git a/frontend/src/lib/components/ChannelSelector.svelte b/frontend/src/lib/components/ChannelSelector.svelte
new file mode 100644
index 0000000000..f7db63ddc2
--- /dev/null
+++ b/frontend/src/lib/components/ChannelSelector.svelte
@@ -0,0 +1,86 @@
+<script lang="ts">
+	import Select from '$lib/components/apps/svelte-select/lib/Select.svelte'
+	import { SELECT_INPUT_DEFAULT_STYLE } from '$lib/defaults'
+	import { createEventDispatcher, onMount } from 'svelte'
+	import DarkModeObserver from './DarkModeObserver.svelte'
+
+	interface ChannelItem {
+		channel_id: string
+		channel_name: string
+	}
+
+	export let disabled = false
+	export let placeholder = 'Select channel'
+	export let selectedChannel: ChannelItem | undefined = undefined
+	export let containerClass = 'w-64'
+	export let minWidth = '160px'
+	export let channels: ChannelItem[] = []
+
+	let darkMode: boolean = false
+
+	const dispatch = createEventDispatcher<{
+		change: ChannelItem
+	}>()
+
+	function onThemeChange() {
+		darkMode = document.documentElement.classList.contains('dark')
+	}
+
+	onMount(() => {
+		onThemeChange()
+	})
+
+	function handleChannelSelect(event) {
+		selectedChannel = event.detail
+		if (selectedChannel) {
+			dispatch('change', selectedChannel)
+		}
+	}
+
+	function filterChannels(filterText: string | unknown) {
+		if (!channels) return channels
+
+		const searchText = typeof filterText === 'string' ? filterText : ''
+
+		const filtered = searchText
+			? channels.filter((channel) =>
+					channel.channel_name.toLowerCase().includes(searchText.toLowerCase())
+				)
+			: channels
+
+		return filtered
+	}
+</script>
+
+<div class={containerClass}>
+	<div class="flex items-center gap-2">
+		<div class="flex-grow" style="min-width: {minWidth};">
+			<Select
+				inputStyles={SELECT_INPUT_DEFAULT_STYLE.inputStyles}
+				containerStyles={'border-color: lightgray; min-width: ' +
+					minWidth +
+					';' +
+					(darkMode
+						? SELECT_INPUT_DEFAULT_STYLE.containerStylesDark
+						: SELECT_INPUT_DEFAULT_STYLE.containerStyles)}
+				itemId="channel_id"
+				label="channel_name"
+				items={channels || []}
+				on:change={handleChannelSelect}
+				{placeholder}
+				searchable={true}
+				disabled={disabled || channels.length === 0}
+				on:input={async (e) => {
+					const filterText = e.detail
+					return filterChannels(filterText)
+				}}
+			/>
+		</div>
+	</div>
+
+	{#if channels.length === 0 && !disabled}
+		<div class="text-xs text-tertiary mt-1"> No channels available </div>
+	{/if}
+</div>
+
+<DarkModeObserver on:change={onThemeChange} />
diff --git a/frontend/src/lib/components/ConnectionSection.svelte b/frontend/src/lib/components/ConnectionSection.svelte
index 245076ed81..c0b1275625 100644
--- a/frontend/src/lib/components/ConnectionSection.svelte
+++ b/frontend/src/lib/components/ConnectionSection.svelte
@@ -1,15 +1,21 @@
 <script lang="ts">
 	import { Badge, Button } from '$lib/components/common'
 	import Description from '$lib/components/Description.svelte'
-	import { Slack, Code2, RefreshCcw } from 'lucide-svelte'
+	import { Slack, Code2 } from 'lucide-svelte'
 	import MsTeamsIcon from '$lib/components/icons/MSTeamsIcon.svelte'
 	import BarsStaggered from '$lib/components/icons/BarsStaggered.svelte'
 	import { hubBaseUrlStore, workspaceStore, enterpriseLicense } from '$lib/stores'
 	import ScriptPicker from '$lib/components/ScriptPicker.svelte'
 	import { WorkspaceService } from '$lib/gen'
-	import type { ListAvailableTeamsIdsResponse } from '$lib/gen/types.gen'
-	export let platform: 'slack' | 'teams'
 	import { sendUserToast } from '$lib/utils'
+	import TeamSelector from './TeamSelector.svelte'
+
+	interface TeamItem {
+		team_id: string
+		team_name: string
+	}
+
+	export let platform: 'slack' | 'teams'
 	export let teamName: string | undefined
 	export let display_name: string | undefined
 	export let scriptPath: string
@@ -23,34 +29,25 @@
 	export let onLoadSettings: () => void
 	export let itemKind: 'flow' | 'script' = 'script'
 
-	let isFetching = false
-
-	let teams: ListAvailableTeamsIdsResponse = []
-	let selected_teams_team: string | undefined = undefined
-
-	async function loadTeams() {
-		isFetching = true
-		selected_teams_team = undefined
-		teams = (await WorkspaceService.listAvailableTeamsIds({ workspace: $workspaceStore! })) ?? []
-		isFetching = false
-	}
-
-	$: workspaceStore && platform && $enterpriseLicense && loadTeams()
+	let selectedTeam: TeamItem | undefined = undefined
 
 	async function connectTeams() {
-		const selectedTeam = teams.find((team) => team.team_id === selected_teams_team)
-		const selectedTeamName = selectedTeam ? selectedTeam.team_name : undefined
+		if (!selectedTeam) return
 
-		await WorkspaceService.connectTeams({
-			workspace: $workspaceStore!,
-			requestBody: {
-				team_id: selected_teams_team,
-				team_name: selectedTeamName
-			}
-		})
-		sendUserToast('Connected to Teams to Workspace')
-		onLoadSettings()
-		loadTeams()
+		try {
+			await WorkspaceService.connectTeams({
+				workspace: $workspaceStore!,
+				requestBody: {
+					team_id: selectedTeam.team_id,
+					team_name: selectedTeam.team_name
+				}
+			})
+			sendUserToast('Connected to Teams successfully')
+			onLoadSettings()
+		} catch (error) {
+			sendUserToast('Failed to connect to Teams', true)
+			console.error('Error connecting to Teams:', error)
+		}
 	}
 </script>
 
@@ -92,49 +89,35 @@
 		{/if}
 	</div>
 {:else}
-	<div class="flex flex-row gap-2">
-		{#if platform === 'teams'}
-			<Button
-				size="xs"
-				color="dark"
-				on:click={connectTeams}
-				startIcon={{ icon: MsTeamsIcon }}
-				disabled={!selected_teams_team || !enterpriseLicense}
-			>
-				Connect to {platform.charAt(0).toUpperCase() + platform.slice(1)}
-				{$enterpriseLicense ? '' : '(EE only)'}
-			</Button>
-			{#if $enterpriseLicense}
-				<div class="w-64 flex flex-row gap-2">
-					<select bind:value={selected_teams_team}>
-						{#if !isFetching}
-							{#if teams.length === 0}
-								<option value="" disabled selected>No unassigned teams found</option>
-							{:else}
-								<option value="" disabled selected>Select team</option>
-								{#each teams as team}
-									<option value={team.team_id}>
-										{team.team_name}
-									</option>
-								{/each}
-							{/if}
-						{:else}
-							<option value="" disabled selected>Loading...</option>
-						{/if}
-					</select>
-				</div>
-				<div class="pt-1">
-					<button on:click={loadTeams} class="flex items-center gap-1 mt-2">
-						<RefreshCcw size={16} class={isFetching ? 'animate-spin' : ''} />
-					</button>
-				</div>
+	<div class="flex flex-col gap-2">
+		<div class="flex flex-row gap-2 items-center">
+			{#if platform === 'teams'}
+				<Button
+					size="xs"
+					color="dark"
+					on:click={connectTeams}
+					startIcon={{ icon: MsTeamsIcon }}
+					disabled={!selectedTeam || !$enterpriseLicense}
+				>
+					Connect to {platform.charAt(0).toUpperCase() + platform.slice(1)}
+					{$enterpriseLicense ? '' : '(EE only)'}
+				</Button>
+
+				{#if $enterpriseLicense}
+					<TeamSelector
+						bind:selectedTeam
+						minWidth="180px"
+						disabled={!$enterpriseLicense}
+						on:error={(e) => sendUserToast('Failed to load teams: ' + e.detail.message, true)}
+					/>
+				{/if}
+			{:else}
+				<Button size="xs" color="dark" href={connectHref} startIcon={{ icon: Slack }}>
+					Connect to {platform.charAt(0).toUpperCase() + platform.slice(1)}
+				</Button>
 			{/if}
-		{:else}
-			<Button size="xs" color="dark" href={connectHref} startIcon={{ icon: Slack }}>
-				Connect to {platform.charAt(0).toUpperCase() + platform.slice(1)}
-			</Button>
-		{/if}
-		<Badge color="red">Not connected</Badge>
+			<Badge color="red">Not connected</Badge>
+		</div>
 	</div>
 {/if}
 
diff --git a/frontend/src/lib/components/ErrorOrRecoveryHandler.svelte b/frontend/src/lib/components/ErrorOrRecoveryHandler.svelte
index c423ba7c9e..472daa9d1e 100644
--- a/frontend/src/lib/components/ErrorOrRecoveryHandler.svelte
+++ b/frontend/src/lib/components/ErrorOrRecoveryHandler.svelte
@@ -3,6 +3,7 @@
 	import ScriptPicker from '$lib/components/ScriptPicker.svelte'
 	import Toggle from '$lib/components/Toggle.svelte'
 	import Tooltip from '$lib/components/Tooltip.svelte'
+	import ChannelSelector from '$lib/components/ChannelSelector.svelte'
 
 	import type { Schema, SupportedLanguage } from '$lib/common'
 	import { base } from '$lib/base'
@@ -439,34 +440,40 @@
 		/>
 	</span>
 	{#if workspaceConnectedToTeams}
-		<div class="w-2/3 flex flex-row items-center gap-2">
-			<div class="pt-1 flex-shrink-0">
-				<MsTeamsIcon height="24px" width="24px" />
+		<div class="w-2/3 flex flex-col gap-2">
+			<div class="flex flex-row items-center gap-2">
+				<div class="pt-1 flex-shrink-0">
+					<MsTeamsIcon height="24px" width="24px" />
+				</div>
+				<p class="text-sm">Teams Channel</p>
 			</div>
-			<p class="text-sm">Teams Channel</p>
-			<div class="flex-grow">
-				<select class="w-full" bind:value={handlerExtraArgs['channel']}>
-					{#if teams_channels.length === 0}
-						<option value="" disabled selected>Bot not connected to any channel</option>
-					{:else}
-						<option value="" disabled selected>Select Teams channel</option>
-						{#each teams_channels as channel}
-							<option value={channel.channel_id}>
-								{channel.channel_name}
-							</option>
-						{/each}
-					{/if}
-				</select>
-			</div>
-			<div class="flex-shrink-0">
-				<button on:click={loadTeamsResources} class="flex items-center gap-1 mt-2">
-					<RefreshCcw size={16} class={isFetching ? 'animate-spin' : ''} />
-				</button>
+
+			<div class="flex flex-row gap-2 items-start">
+				<ChannelSelector
+					containerClass="flex-grow"
+					minWidth="200px"
+					placeholder="Select Teams channel"
+					channels={teams_channels as any[]}
+					on:change={(e) => (handlerExtraArgs['channel'] = e.detail.channel_id)}
+					selectedChannel={handlerExtraArgs['channel']
+						? (teams_channels.find((ch) => ch.channel_id === handlerExtraArgs['channel']) as any)
+						: undefined}
+				/>
+				<div class="flex-shrink-0">
+					<button
+						on:click={loadTeamsResources}
+						class="flex items-center gap-1 p-1.5 rounded hover:bg-surface-hover focus:bg-surface-hover"
+					>
+						<RefreshCcw size={16} class={isFetching ? 'animate-spin' : ''} />
+					</button>
+				</div>
 			</div>
 		</div>
 		<div class="flex flex-row gap-2 pb-4">
 			<p class="text-sm">
-				This workspace is connected to Team: <Badge color="blue" size="xs" class="mt-2">{teams_team_name}</Badge>
+				This workspace is connected to Team: <Badge color="blue" size="xs" class="mt-2"
+					>{teams_team_name}</Badge
+				>
 			</p>
 			<Tooltip text={teams_team_name}>
 				Each workspace can only be connected to one Microsoft Teams team. You can configure it under <a
@@ -499,7 +506,7 @@
 		{:else}
 			<Button
 				disabled={emptyString(handlerExtraArgs['channel'])}
-				btnClasses="w-32 text-center"
+				btnClasses="w-32 text-center mt-2"
 				color="dark"
 				on:click={() => sendTeamsMessage(handlerExtraArgs['channel'] ?? '')}
 				size="xs">Send test message</Button
@@ -507,7 +514,7 @@
 			{#if connectionTestJob !== undefined}
 				<p class="text-normal text-2xs mt-1 gap-2">
 					{#if connectionTestJob.in_progress}
-						<RotateCw size={14} />
+						<RotateCw size={14} class="animate-spin" />
 					{:else if connectionTestJob.is_success}
 						<CheckCircle2 size={14} class="text-green-600" />
 					{:else}
diff --git a/frontend/src/lib/components/InstanceSetting.svelte b/frontend/src/lib/components/InstanceSetting.svelte
index 9e619db2a4..958dcb9808 100644
--- a/frontend/src/lib/components/InstanceSetting.svelte
+++ b/frontend/src/lib/components/InstanceSetting.svelte
@@ -30,6 +30,8 @@
 	import ToggleButtonGroup from './common/toggleButton-v2/ToggleButtonGroup.svelte'
 	import ToggleButton from './common/toggleButton-v2/ToggleButton.svelte'
 	import SimpleEditor from './SimpleEditor.svelte'
+	import TeamSelector from './TeamSelector.svelte'
+	import ChannelSelector from './ChannelSelector.svelte'
 
 	export let setting: Setting
 	export let version: string
@@ -134,9 +136,8 @@
 		}
 	}
 
-	function handleTeamChange(event: Event, i: number) {
-		const teamId = (event.target as HTMLSelectElement).value
-		const team = $values['teams'].find((team) => team.team_id === teamId) || null
+	function handleTeamChange(teamItem: { team_id: string; team_name: string }, i: number) {
+		const team = $values['teams'].find((team) => team.team_id === teamItem.team_id) || null
 		$values['critical_error_channels'][i] = {
 			teams_channel: {
 				team_id: team?.team_id,
@@ -147,13 +148,9 @@
 		}
 	}
 
-	function handleChannelChange(event: Event, setting: Setting, i: number) {
-		const channelId = (event.target as HTMLSelectElement).value
-		const team = $values['teams'].find(
-			(team) => team.team_id === $values['critical_error_channels'][i]?.teams_channel?.team_id
-		)
-		const channel = team?.channels.find((channel) => channel.channel_id === channelId) || null
-		if (channelId) {
+	function handleChannelChange(channel: { channel_id: string; channel_name: string }, i: number) {
+		const team = $values['critical_error_channels'][i]?.teams_channel
+		if (team) {
 			$values['critical_error_channels'][i] = {
 				teams_channel: {
 					team_id: team?.team_id,
@@ -458,46 +455,45 @@
 											/>
 										{:else if v && 'teams_channel' in v}
 											<div class="flex flex-row gap-2 w-full">
-												<select on:change={(e) => handleTeamChange(e, i)}>
-													<option
-														value=""
-														disabled
-														selected={!$values['critical_error_channels'][i]?.teams_channel
-															?.team_id}>Select team</option
-													>
-													{#if $values['teams']}
-														{#each $values['teams'] as team}
-															<option
-																value={team.team_id}
-																selected={$values['critical_error_channels'][i]?.teams_channel
-																	?.team_id === team.team_id}
-															>
-																{team.team_name}
-															</option>
-														{/each}
-													{/if}
-												</select>
+												<TeamSelector
+													containerClass="w-44"
+													minWidth="140px"
+													showRefreshButton={false}
+													placeholder="Select team"
+													teams={$values['teams']}
+													on:change={(e) => handleTeamChange(e.detail, i)}
+													selectedTeam={$values['critical_error_channels'][i]?.teams_channel
+														? {
+																team_id:
+																	$values['critical_error_channels'][i]?.teams_channel?.team_id,
+																team_name:
+																	$values['critical_error_channels'][i]?.teams_channel?.team_name
+															}
+														: undefined}
+												/>
+
 												{#if $values['critical_error_channels'][i]?.teams_channel?.team_id}
-													<select
-														id="channel-select"
-														on:change={(e) => handleChannelChange(e, setting, i)}
-													>
-														<option
-															value=""
-															disabled
-															selected={!$values['critical_error_channels'][i]?.teams_channel
-																?.channel_id}>Select channel</option
-														>
-														{#each $values['teams'].find((team) => team.team_id === $values['critical_error_channels'][i]?.teams_channel?.team_id)?.channels ?? [] as channel}
-															<option
-																value={channel.channel_id}
-																selected={$values['critical_error_channels'][i]?.teams_channel
-																	?.channel_id === channel.channel_id}
-															>
-																{channel.channel_name}
-															</option>
-														{/each}
-													</select>
+													<ChannelSelector
+														containerClass=""
+														placeholder="Select channel"
+														channels={$values['teams'].find(
+															(team) =>
+																team.team_id ===
+																$values['critical_error_channels'][i]?.teams_channel?.team_id
+														)?.channels ?? []}
+														on:change={(e) => handleChannelChange(e.detail, i)}
+														selectedChannel={$values['critical_error_channels'][i]?.teams_channel
+															?.channel_id
+															? {
+																	channel_id:
+																		$values['critical_error_channels'][i]?.teams_channel
+																			?.channel_id,
+																	channel_name:
+																		$values['critical_error_channels'][i]?.teams_channel
+																			?.channel_name
+																}
+															: undefined}
+													/>
 												{/if}
 												<div>
 													<button on:click={fetchTeams} class="flex items-center gap-1 mt-2">
diff --git a/frontend/src/lib/components/TeamSelector.svelte b/frontend/src/lib/components/TeamSelector.svelte
new file mode 100644
index 0000000000..cbe1c719dc
--- /dev/null
+++ b/frontend/src/lib/components/TeamSelector.svelte
@@ -0,0 +1,127 @@
+<script lang="ts">
+	import Select from '$lib/components/apps/svelte-select/lib/Select.svelte'
+	import { workspaceStore } from '$lib/stores'
+	import { SELECT_INPUT_DEFAULT_STYLE } from '$lib/defaults'
+	import { createEventDispatcher, onMount } from 'svelte'
+	import DarkModeObserver from './DarkModeObserver.svelte'
+	import { RefreshCcw } from 'lucide-svelte'
+	import { WorkspaceService } from '$lib/gen'
+
+	interface TeamItem {
+		team_id: string
+		team_name: string
+	}
+
+	export let disabled = false
+	export let placeholder = 'Select a team'
+	export let selectedTeam: TeamItem | undefined = undefined
+	export let containerClass = 'w-64'
+	export let showRefreshButton = true
+	export let teams: TeamItem[] | undefined = undefined
+	export let minWidth = '160px'
+
+	let isFetching = false
+	let darkMode: boolean = false
+
+	const dispatch = createEventDispatcher<{
+		change: TeamItem
+		error: Error
+	}>()
+
+	function onThemeChange() {
+		darkMode = document.documentElement.classList.contains('dark')
+	}
+
+	onMount(() => {
+		onThemeChange()
+		if (!teams) {
+			loadTeams()
+		}
+	})
+
+	async function loadTeams() {
+		isFetching = true
+		try {
+			const response = (await WorkspaceService.listAvailableTeamsIds({
+				workspace: $workspaceStore!
+			})) as unknown as TeamItem[]
+
+			teams = response || []
+			isFetching = false
+			console.log('Teams loaded:', teams.length)
+			return teams
+		} catch (error) {
+			isFetching = false
+			dispatch('error', error)
+			console.error('Error loading teams:', error)
+			return []
+		}
+	}
+
+	function handleTeamSelect(event) {
+		selectedTeam = event.detail
+		if (selectedTeam) {
+			dispatch('change', selectedTeam)
+		}
+	}
+
+	function filterTeams(filterText: string | unknown) {
+		if (!teams) return teams
+
+		const searchText = typeof filterText === 'string' ? filterText : ''
+
+		const filtered = searchText
+			? teams.filter((team) => team.team_name.toLowerCase().includes(searchText.toLowerCase()))
+			: teams
+
+		return filtered
+	}
+</script>
+
+<div class={containerClass}>
+	<div class="flex items-center gap-2">
+		<div class="flex-grow" style="min-width: {minWidth};">
+			<Select
+				inputStyles={SELECT_INPUT_DEFAULT_STYLE.inputStyles}
+				containerStyles={'border-color: lightgray; min-width: ' +
+					minWidth +
+					';' +
+					(darkMode
+						? SELECT_INPUT_DEFAULT_STYLE.containerStylesDark
+						: SELECT_INPUT_DEFAULT_STYLE.containerStyles)}
+				itemId="team_id"
+				label="team_name"
+				items={teams || []}
+				on:change={handleTeamSelect}
+				{placeholder}
+				searchable={true}
+				loading={isFetching}
+				disabled={disabled || isFetching}
+				on:input={(e) => filterTeams(e.detail)}
+			/>
+		</div>
+
+		{#if showRefreshButton}
+			<button
+				on:click={loadTeams}
+				disabled={isFetching || disabled}
+				class="flex items-center justify-center p-1.5 rounded hover:bg-surface-hover focus:bg-surface-hover disabled:opacity-50"
+				title="Refresh teams from Microsoft"
+			>
+				<RefreshCcw size={16} class={isFetching ? 'animate-spin' : ''} />
+			</button>
+		{/if}
+	</div>
+
+	{#if isFetching || ((!teams || teams.length === 0) && !isFetching)}
+		<div class="text-xs text-tertiary mt-1">
+			{#if isFetching}
+				Fetching teams from Microsoft...
+			{:else}
+				No available teams found
+			{/if}
+		</div>
+	{/if}
+</div>
+
+<DarkModeObserver on:change={onThemeChange} />