diff --git a/frappe/public/js/form_builder/components/Dropdown.vue b/frappe/public/js/form_builder/components/Dropdown.vue
new file mode 100644
index 0000000000..6a5c9347d5
--- /dev/null
+++ b/frappe/public/js/form_builder/components/Dropdown.vue
@@ -0,0 +1,97 @@
+<template>
+	<div class="drop-down">
+		<div class="search-box">
+			<input
+				ref="searchInput"
+				class="search-input form-control"
+				type="text"
+				:placeholder="__('Search field...')"
+				@input="(event) => $emit('update:modelValue', event.target.value)"
+				:value="modelValue"
+				@click.stop
+			/>
+			<span class="search-icon">
+				<div v-html="frappe.utils.icon('search', 'sm')"></div>
+			</span>
+		</div>
+		<div class="drop-down-list">
+			<button
+				class="btn drop-down-item"
+				v-for="(item, i) in items"
+				:key="i"
+				@click.stop="(i) => item.onClick(i)"
+			>
+				<slot>{{ item.label }}</slot>
+			</button>
+		</div>
+	</div>
+</template>
+
+<script setup>
+import { ref, onMounted } from "vue";
+
+const props = defineProps({
+	items: {
+		type: Array,
+		required: true,
+	},
+	modelValue: {
+		type: String,
+		default: "",
+	},
+});
+
+const searchInput = ref(null);
+
+onMounted(() => {
+	searchInput.value.focus();
+});
+</script>
+
+<style lang="scss" scoped>
+.drop-down {
+	display: inline-block;
+	background-color: var(--fg-color);
+	box-shadow: var(--shadow-base) !important;
+	border-radius: var(--border-radius-sm);
+	top: 30px;
+	right: 0;
+	width: 170px;
+	z-index: 99999999;
+}
+
+.drop-down-list {
+	overflow-y: auto;
+	max-height: 250px;
+	text-align: left;
+	padding: 0 6px 6px;
+}
+
+.drop-down-item {
+	font-size: small;
+	text-align: left;
+	border-radius: var(--border-radius-sm);
+	margin: 1px 0px;
+	width: 100%;
+
+	&:hover {
+		background-color: var(--bg-light-gray);
+	}
+}
+
+.search-box {
+	padding: 6px;
+	.search-input {
+		padding-left: 30px;
+		font-size: small;
+		width: 100% !important;
+		background-color: var(--control-bg) !important;
+	}
+
+	.search-icon {
+		position: absolute;
+		left: 13px;
+		top: 11px;
+	}
+}
+</style>
diff --git a/frappe/public/js/form_builder/components/Field.vue b/frappe/public/js/form_builder/components/Field.vue
index b67d6db0c9..6c0d1bb76e 100644
--- a/frappe/public/js/form_builder/components/Field.vue
+++ b/frappe/public/js/form_builder/components/Field.vue
@@ -1,17 +1,75 @@
 <script setup>
 import EditableInput from "./EditableInput.vue";
-import { ref, computed } from "vue";
+import Dropdown from "./Dropdown.vue";
 import { useStore } from "../store";
 import { move_children_to_parent, clone_field } from "../utils";
+import { createPopper } from "@popperjs/core";
+import { ref, computed, watch } from "vue";
 
 const props = defineProps(["column", "field"]);
-let store = useStore();
+const store = useStore();
 
-let hovered = ref(false);
-let component = computed(() => {
+const hovered = ref(false);
+const component = computed(() => {
 	return props.field.df.fieldtype.replace(" ", "") + "Control";
 });
 
+const show_fieldtype_dropdown = ref(false);
+const search_text = ref("");
+const fields = computed(() => {
+	let fields = frappe.model.all_fieldtypes
+		.filter((df) => {
+			if (in_list(frappe.model.layout_fields, df)) {
+				return false;
+			}
+			if (search_text.value) {
+				if (df.toLowerCase().includes(search_text.value.toLowerCase())) {
+					return true;
+				}
+				return false;
+			} else {
+				return true;
+			}
+		})
+		.map((df) => {
+			let out = {
+				label: df,
+				onClick: () => {
+					let new_field = {
+						df: store.get_df(df),
+						table_columns: [],
+					};
+
+					add_new_field(clone_field(new_field));
+				},
+			};
+			return out;
+		});
+	return [...fields];
+});
+
+const add_field_btn_ref = ref(null);
+const dropdown_ref = ref(null);
+const popper = ref(null);
+
+function setupPopper() {
+	if (!popper.value) {
+		popper.value = createPopper(add_field_btn_ref.value, dropdown_ref.value, {
+			placement: "bottom-end",
+			modifiers: [
+				{
+					name: "offset",
+					options: {
+						offset: [0, 4],
+					},
+				},
+			],
+		});
+	} else {
+		popper.value.update();
+	}
+}
+
 function remove_field() {
 	if (store.is_customize_form && props.field.df.is_custom_field == 0) {
 		frappe.msgprint(__("Cannot delete standard field. You can hide it if you want"));
@@ -23,8 +81,8 @@ function remove_field() {
 }
 
 function move_fields_to_column() {
-	let current_section = store.current_tab.sections.find(section =>
-		section.columns.find(column => column == props.column)
+	let current_section = store.current_tab.sections.find((section) =>
+		section.columns.find((column) => column == props.column)
 	);
 	move_children_to_parent(props, "column", "field", current_section);
 }
@@ -53,6 +111,27 @@ function duplicate_field() {
 	props.column.fields.splice(index + 1, 0, duplicate_field);
 	store.form.selected_field = duplicate_field.df;
 }
+
+function add_new_field(field) {
+	// insert new field after current field
+	let index = props.column.fields.indexOf(props.field);
+	props.column.fields.splice(index + 1, 0, field);
+	store.form.selected_field = field.df;
+	show_fieldtype_dropdown.value = false;
+	hovered.value = false;
+}
+
+function toggle_fieldtype_dropdown() {
+	show_fieldtype_dropdown.value = !show_fieldtype_dropdown.value;
+	search_text.value = "";
+	setupPopper();
+}
+
+watch(hovered, (val) => {
+	if (val && store.form.selected_field && store.form.selected_field != props.field.df) {
+		show_fieldtype_dropdown.value = false;
+	}
+});
 </script>
 
 <template>
@@ -60,7 +139,7 @@ function duplicate_field() {
 		:class="[
 			'field',
 			hovered ? 'hovered' : '',
-			store.selected(field.df.name) ? 'selected' : ''
+			store.selected(field.df.name) ? 'selected' : '',
 		]"
 		:title="field.df.fieldname"
 		@click.stop="store.form.selected_field = field.df"
@@ -82,17 +161,28 @@ function duplicate_field() {
 						v-model="field.df.label"
 					/>
 					<div class="reqd-asterisk" v-if="field.df.reqd">*</div>
-					<div class="help-icon" v-if="field.df.documentation_url" v-html="frappe.utils.icon('help', 'sm')"></div>
+					<div
+						class="help-icon"
+						v-if="field.df.documentation_url"
+						v-html="frappe.utils.icon('help', 'sm')"
+					></div>
 				</div>
 			</template>
 			<template #actions>
 				<div class="field-actions" :hidden="store.read_only">
 					<button
-						v-if="field.df.fieldtype == 'HTML'"
-						class="btn btn-xs btn-icon"
-						@click="edit_html"
+						ref="add_field_btn_ref"
+						class="add-field-btn btn btn-xs btn-icon"
+						@click="toggle_fieldtype_dropdown"
 					>
-						<div v-html="frappe.utils.icon('edit', 'sm')"></div>
+						<div v-html="frappe.utils.icon('add', 'sm')" />
+						<div class="drop-down" ref="dropdown_ref">
+							<Dropdown
+								v-if="show_fieldtype_dropdown"
+								:items="fields"
+								v-model="search_text"
+							/>
+						</div>
 					</button>
 					<button
 						v-if="column.fields.indexOf(field)"
@@ -177,4 +267,8 @@ function duplicate_field() {
 		}
 	}
 }
+
+.drop-down {
+	z-index: 99999;
+}
 </style>
diff --git a/frappe/public/js/form_builder/components/FieldTypes.vue b/frappe/public/js/form_builder/components/FieldTypes.vue
deleted file mode 100644
index 06d027eb61..0000000000
--- a/frappe/public/js/form_builder/components/FieldTypes.vue
+++ /dev/null
@@ -1,93 +0,0 @@
-<script setup>
-import SearchBox from "./SearchBox.vue";
-import draggable from "vuedraggable";
-import { ref, computed } from "vue";
-import { useStore } from "../store";
-import { clone_field } from "../utils";
-
-let store = useStore();
-let search_text = ref("");
-
-let fields = computed(() => {
-	let fields = frappe.model.all_fieldtypes
-		.filter(df => {
-			if (in_list(frappe.model.layout_fields, df)) {
-				return false;
-			}
-			if (search_text.value) {
-				if (df.toLowerCase().includes(search_text.value.toLowerCase())) {
-					return true;
-				}
-				return false;
-			} else {
-				return true;
-			}
-		})
-		.map(df => {
-			let out = {
-				df: store.get_df(df),
-				table_columns: [],
-			};
-			return out;
-		});
-
-	return [...fields];
-});
-
-function on_drag_start(evt) {
-	$(evt.item).html('<div class="drop-it-here"></div>');
-}
-
-function on_drag_end(evt) {
-	let old_html = evt.clone.innerHTML;
-	$(evt.item).html(old_html);
-}
-</script>
-
-<template>
-	<SearchBox v-model="search_text" />
-	<draggable
-		class="fields-container"
-		:list="fields"
-		:group="{ name: 'fields', pull: 'clone', put: false }"
-		:sort="false"
-		:clone="clone_field"
-		item-key="id"
-		:remove-clone-on-hide="false"
-		@start="on_drag_start"
-		@end="on_drag_end"
-	>
-		<template #item="{ element }">
-			<div class="field" :title="element.df.fieldtype">
-				{{ element.df.fieldtype }}
-			</div>
-		</template>
-	</draggable>
-</template>
-
-<style lang="scss" scoped>
-.fields-container {
-	height: calc(100vh - 250px);
-	overflow-y: auto;
-	display: grid;
-	gap: 8px;
-	padding: 8px;
-	grid-template-columns: 1fr 1fr;
-	grid-auto-rows: max-content;
-
-	.field {
-		display: block !important;
-		background-color: var(--bg-light-gray);
-		border-radius: var(--border-radius);
-		border: 0.5px solid var(--dark-border-color);
-		padding: 0.5rem 0.75rem;
-		font-size: var(--text-sm);
-		cursor: pointer;
-
-		&.sortable-ghost {
-			position: absolute;
-			opacity: 0;
-		}
-	}
-}
-</style>