diff --git a/web/components/issues/issue-layouts/group-drag-overlay.tsx b/web/components/issues/issue-layouts/group-drag-overlay.tsx
index df4811efa..ab84eba6d 100644
--- a/web/components/issues/issue-layouts/group-drag-overlay.tsx
+++ b/web/components/issues/issue-layouts/group-drag-overlay.tsx
@@ -5,7 +5,7 @@ import { cn } from "@/helpers/common.helper";
 
 type Props = {
   dragColumnOrientation: "justify-start" | "justify-center" | "justify-end";
-  canDropOverIssue: boolean;
+  canOverlayBeVisible: boolean;
   isDropDisabled: boolean;
   dropErrorMessage?: string;
   orderBy: TIssueOrderByOptions | undefined;
@@ -13,10 +13,16 @@ type Props = {
 };
 
 export const GroupDragOverlay = (props: Props) => {
-  const { dragColumnOrientation, canDropOverIssue, isDropDisabled, dropErrorMessage, orderBy, isDraggingOverColumn } =
-    props;
+  const {
+    dragColumnOrientation,
+    canOverlayBeVisible,
+    isDropDisabled,
+    dropErrorMessage,
+    orderBy,
+    isDraggingOverColumn,
+  } = props;
 
-  const shouldOverlay = isDraggingOverColumn && (!canDropOverIssue || isDropDisabled);
+  const shouldOverlayBeVisible = isDraggingOverColumn && canOverlayBeVisible;
   const readableOrderBy = ISSUE_ORDER_BY_OPTIONS.find((orderByObj) => orderByObj.key === orderBy)?.title;
 
   return (
@@ -24,16 +30,16 @@ export const GroupDragOverlay = (props: Props) => {
       className={cn(
         `absolute top-0 left-0 h-full w-full items-center text-sm font-medium text-custom-text-300 rounded bg-custom-background-overlay ${dragColumnOrientation}`,
         {
-          "flex flex-col border-[1px] border-custom-border-300 z-[2]": shouldOverlay,
+          "flex flex-col border-[1px] border-custom-border-300 z-[2]": shouldOverlayBeVisible,
         },
-        { hidden: !shouldOverlay }
+        { hidden: !shouldOverlayBeVisible }
       )}
     >
       <div
         className={cn(
-          "p-3 mt-8 flex flex-col rounded items-center",
+          "p-3 my-8 flex flex-col rounded items-center",
           {
-            "text-custom-text-200": shouldOverlay,
+            "text-custom-text-200": shouldOverlayBeVisible,
           },
           {
             "text-custom-text-error": isDropDisabled,
diff --git a/web/components/issues/issue-layouts/kanban/default.tsx b/web/components/issues/issue-layouts/kanban/default.tsx
index d0c2839d1..995c86a78 100644
--- a/web/components/issues/issue-layouts/kanban/default.tsx
+++ b/web/components/issues/issue-layouts/kanban/default.tsx
@@ -25,15 +25,16 @@ import { KanbanStoreType } from "./base-kanban-root";
 import { HeaderGroupByCard } from "./headers/group-by-card";
 import { KanbanGroup } from "./kanban-group";
 
-export interface IGroupByKanBan {
+export interface IKanBan {
   issuesMap: IIssueMap;
   issueIds: TGroupedIssues | TSubGroupedIssues | TUnGroupedIssues;
   displayProperties: IIssueDisplayProperties | undefined;
   sub_group_by: TIssueGroupByOptions | undefined;
   group_by: TIssueGroupByOptions | undefined;
   orderBy: TIssueOrderByOptions | undefined;
-  sub_group_id: string;
-  isDragDisabled: boolean;
+  isDropDisabled?: boolean;
+  dropErrorMessage?: string | undefined;
+  sub_group_id?: string;
   updateIssue: ((projectId: string, issueId: string, data: Partial<TIssue>) => Promise<void>) | undefined;
   quickActions: TRenderQuickActions;
   kanbanFilters: TIssueKanbanFilters;
@@ -56,7 +57,7 @@ export interface IGroupByKanBan {
   subGroupIssueHeaderCount?: (listId: string) => number;
 }
 
-const GroupByKanBan: React.FC<IGroupByKanBan> = observer((props) => {
+export const KanBan: React.FC<IKanBan> = observer((props) => {
   const {
     issuesMap,
     issueIds,
@@ -64,7 +65,6 @@ const GroupByKanBan: React.FC<IGroupByKanBan> = observer((props) => {
     sub_group_by,
     group_by,
     sub_group_id = "null",
-    isDragDisabled,
     updateIssue,
     quickActions,
     kanbanFilters,
@@ -81,6 +81,8 @@ const GroupByKanBan: React.FC<IGroupByKanBan> = observer((props) => {
     showEmptyGroup = true,
     subGroupIssueHeaderCount,
     orderBy,
+    isDropDisabled,
+    dropErrorMessage,
   } = props;
 
   const member = useMember();
@@ -89,6 +91,9 @@ const GroupByKanBan: React.FC<IGroupByKanBan> = observer((props) => {
   const cycle = useCycle();
   const moduleInfo = useModule();
   const projectState = useProjectState();
+  const issueKanBanView = useKanbanView();
+
+  const isDragDisabled = !issueKanBanView?.getCanUserDragDrop(group_by, sub_group_by);
 
   const list = getGroupByColumns(
     group_by as GroupByColumnTypes,
@@ -175,8 +180,8 @@ const GroupByKanBan: React.FC<IGroupByKanBan> = observer((props) => {
                   orderBy={orderBy}
                   sub_group_id={sub_group_id}
                   isDragDisabled={isDragDisabled}
-                  isDropDisabled={!!subList.isDropDisabled}
-                  dropErrorMessage={subList.dropErrorMessage}
+                  isDropDisabled={!!subList.isDropDisabled || !!isDropDisabled}
+                  dropErrorMessage={subList.dropErrorMessage ?? dropErrorMessage}
                   updateIssue={updateIssue}
                   quickActions={quickActions}
                   enableQuickIssueCreate={enableQuickIssueCreate}
@@ -194,90 +199,3 @@ const GroupByKanBan: React.FC<IGroupByKanBan> = observer((props) => {
     </div>
   );
 });
-
-export interface IKanBan {
-  issuesMap: IIssueMap;
-  issueIds: TGroupedIssues | TSubGroupedIssues | TUnGroupedIssues;
-  displayProperties: IIssueDisplayProperties | undefined;
-  sub_group_by: TIssueGroupByOptions | undefined;
-  group_by: TIssueGroupByOptions | undefined;
-  orderBy: TIssueOrderByOptions | undefined;
-  sub_group_id?: string;
-  updateIssue: ((projectId: string, issueId: string, data: Partial<TIssue>) => Promise<void>) | undefined;
-  quickActions: TRenderQuickActions;
-  kanbanFilters: TIssueKanbanFilters;
-  handleKanbanFilters: (toggle: "group_by" | "sub_group_by", value: string) => void;
-  showEmptyGroup: boolean;
-  enableQuickIssueCreate?: boolean;
-  quickAddCallback?: (
-    workspaceSlug: string,
-    projectId: string,
-    data: TIssue,
-    viewId?: string
-  ) => Promise<TIssue | undefined>;
-  viewId?: string;
-  disableIssueCreation?: boolean;
-  storeType: KanbanStoreType;
-  addIssuesToView?: (issueIds: string[]) => Promise<TIssue>;
-  canEditProperties: (projectId: string | undefined) => boolean;
-  scrollableContainerRef?: MutableRefObject<HTMLDivElement | null>;
-  handleOnDrop: (source: GroupDropLocation, destination: GroupDropLocation) => Promise<void>;
-  subGroupIssueHeaderCount?: (listId: string) => number;
-}
-
-export const KanBan: React.FC<IKanBan> = observer((props) => {
-  const {
-    issuesMap,
-    issueIds,
-    displayProperties,
-    sub_group_by,
-    group_by,
-    sub_group_id = "null",
-    updateIssue,
-    quickActions,
-    kanbanFilters,
-    handleKanbanFilters,
-    enableQuickIssueCreate,
-    quickAddCallback,
-    viewId,
-    disableIssueCreation,
-    storeType,
-    addIssuesToView,
-    canEditProperties,
-    scrollableContainerRef,
-    handleOnDrop,
-    showEmptyGroup,
-    subGroupIssueHeaderCount,
-    orderBy,
-  } = props;
-
-  const issueKanBanView = useKanbanView();
-
-  return (
-    <GroupByKanBan
-      issuesMap={issuesMap}
-      issueIds={issueIds}
-      displayProperties={displayProperties}
-      group_by={group_by}
-      sub_group_by={sub_group_by}
-      orderBy={orderBy}
-      sub_group_id={sub_group_id}
-      isDragDisabled={!issueKanBanView?.getCanUserDragDrop(group_by, sub_group_by)}
-      updateIssue={updateIssue}
-      quickActions={quickActions}
-      kanbanFilters={kanbanFilters}
-      handleKanbanFilters={handleKanbanFilters}
-      enableQuickIssueCreate={enableQuickIssueCreate}
-      quickAddCallback={quickAddCallback}
-      viewId={viewId}
-      disableIssueCreation={disableIssueCreation}
-      storeType={storeType}
-      addIssuesToView={addIssuesToView}
-      canEditProperties={canEditProperties}
-      scrollableContainerRef={scrollableContainerRef}
-      handleOnDrop={handleOnDrop}
-      showEmptyGroup={showEmptyGroup}
-      subGroupIssueHeaderCount={subGroupIssueHeaderCount}
-    />
-  );
-});
diff --git a/web/components/issues/issue-layouts/kanban/kanban-group.tsx b/web/components/issues/issue-layouts/kanban/kanban-group.tsx
index 1b3fb8238..da46e8627 100644
--- a/web/components/issues/issue-layouts/kanban/kanban-group.tsx
+++ b/web/components/issues/issue-layouts/kanban/kanban-group.tsx
@@ -187,8 +187,8 @@ export const KanbanGroup = observer((props: IKanbanGroup) => {
     return preloadedData;
   };
 
-  const canDropOverIssue = orderBy === "sort_order";
-  const shouldOverlay = isDraggingOverColumn && (!canDropOverIssue || isDropDisabled);
+  const canOverlayBeVisible = orderBy !== "sort_order" || isDropDisabled;
+  const shouldOverlayBeVisible = isDraggingOverColumn && canOverlayBeVisible;
 
   return (
     <div
@@ -196,13 +196,13 @@ export const KanbanGroup = observer((props: IKanbanGroup) => {
       className={cn(
         "relative h-full transition-all min-h-[120px]",
         { "bg-custom-background-80 rounded": isDraggingOverColumn },
-        { "vertical-scrollbar scrollbar-md": !sub_group_by && !shouldOverlay }
+        { "vertical-scrollbar scrollbar-md": !sub_group_by && !shouldOverlayBeVisible }
       )}
       ref={columnRef}
     >
       <GroupDragOverlay
         dragColumnOrientation={sub_group_by ? "justify-start": "justify-center" }
-        canDropOverIssue={canDropOverIssue}
+        canOverlayBeVisible={canOverlayBeVisible}
         isDropDisabled={isDropDisabled}
         dropErrorMessage={dropErrorMessage}
         orderBy={orderBy}
@@ -219,7 +219,7 @@ export const KanbanGroup = observer((props: IKanbanGroup) => {
         quickActions={quickActions}
         canEditProperties={canEditProperties}
         scrollableContainerRef={sub_group_by ? scrollableContainerRef : columnRef}
-        canDropOverIssue={canDropOverIssue}
+        canDropOverIssue={!canOverlayBeVisible}
       />
 
       {enableQuickIssueCreate && !disableIssueCreation && (
diff --git a/web/components/issues/issue-layouts/kanban/swimlanes.tsx b/web/components/issues/issue-layouts/kanban/swimlanes.tsx
index d79e308f0..08fc2b3c4 100644
--- a/web/components/issues/issue-layouts/kanban/swimlanes.tsx
+++ b/web/components/issues/issue-layouts/kanban/swimlanes.tsx
@@ -219,6 +219,8 @@ const SubGroupSwimlane: React.FC<ISubGroupSwimlane> = observer((props) => {
                     scrollableContainerRef={scrollableContainerRef}
                     handleOnDrop={handleOnDrop}
                     orderBy={orderBy}
+                    isDropDisabled={_list.isDropDisabled}
+                    dropErrorMessage={_list.dropErrorMessage}
                     subGroupIssueHeaderCount={(groupByListId: string) =>
                       getSubGroupHeaderIssuesCount(issueIds as TSubGroupedIssues, groupByListId)
                     }
diff --git a/web/components/issues/issue-layouts/list/list-group.tsx b/web/components/issues/issue-layouts/list/list-group.tsx
index e4cfa8b3a..43c5f990e 100644
--- a/web/components/issues/issue-layouts/list/list-group.tsx
+++ b/web/components/issues/issue-layouts/list/list-group.tsx
@@ -176,7 +176,7 @@ export const ListGroup = observer((props: Props) => {
 
   const is_list = group_by === null ? true : false;
   const isDragAllowed = !!group_by && DRAG_ALLOWED_GROUPS.includes(group_by);
-  const canDropOverIssue = orderBy === "sort_order";
+  const canOverlayBeVisible = orderBy !== "sort_order" || !!group.isDropDisabled;
 
   const issueCount: number = is_list ? issueIds?.length ?? 0 : issueIds?.[group.id]?.length ?? 0;
 
@@ -186,7 +186,8 @@ export const ListGroup = observer((props: Props) => {
     <div
       ref={groupRef}
       className={cn(`relative flex flex-shrink-0 flex-col border-[1px] border-transparent`, {
-        "border-custom-primary-100 ": isDraggingOverColumn,
+        "border-custom-primary-100": isDraggingOverColumn,
+        "border-custom-error-200": isDraggingOverColumn && !!group.isDropDisabled,
       })}
     >
       <div className="sticky top-0 z-[3] w-full flex-shrink-0 border-b border-custom-border-200 bg-custom-background-90 px-3 pl-5 py-1">
@@ -205,7 +206,7 @@ export const ListGroup = observer((props: Props) => {
         <div className="relative">
           <GroupDragOverlay
             dragColumnOrientation={dragColumnOrientation}
-            canDropOverIssue={canDropOverIssue}
+            canOverlayBeVisible={canOverlayBeVisible}
             isDropDisabled={!!group.isDropDisabled}
             dropErrorMessage={group.dropErrorMessage}
             orderBy={orderBy}
@@ -222,7 +223,7 @@ export const ListGroup = observer((props: Props) => {
               canEditProperties={canEditProperties}
               containerRef={containerRef}
               isDragAllowed={isDragAllowed}
-              canDropOverIssue={canDropOverIssue}
+              canDropOverIssue={!canOverlayBeVisible}
             />
           )}