diff --git a/frontend/editor3d/app/pages/PageEnigma/comps/AssetMenu/AssetModal.tsx b/frontend/editor3d/app/pages/PageEnigma/comps/AssetMenu/AssetModal.tsx
index 80f7d69283..6b04a87a31 100644
--- a/frontend/editor3d/app/pages/PageEnigma/comps/AssetMenu/AssetModal.tsx
+++ b/frontend/editor3d/app/pages/PageEnigma/comps/AssetMenu/AssetModal.tsx
@@ -1,9 +1,18 @@
 import { TransitionDialogue } from "~/components/reusable/TransitionDialogue";
-import { faPlus, faSearch, faXmark } from "@fortawesome/pro-solid-svg-icons";
+import {
+  faPlus,
+  faSearch,
+  faChevronRight,
+} from "@fortawesome/pro-solid-svg-icons";
 import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
 import { Button, CloseButton, Input, Tooltip } from "~/components";
 import { TabSelector } from "~/components/reusable/TabSelector";
-import { useState } from "react";
+import { useState, useEffect, useMemo } from "react";
+import { ItemElements } from "../SidePanelTabs/sharedComps/ItemElements";
+import { demoSkyboxItems, demoShapeItems } from "../../signals";
+import { MediaItem } from "../../models";
+import { useUserObjects, useFeaturedObjects } from "../SidePanelTabs/hooks";
+import { FilterEngineCategories } from "~/enums";
 
 interface AssetModalProps {
   isOpen: boolean;
@@ -11,23 +20,189 @@ interface AssetModalProps {
   onAddAsset: () => void;
 }
 
+type AssetTab = {
+  id: string;
+  label: string;
+  engineCategory?: FilterEngineCategories;
+  items: MediaItem[];
+};
+
+const AllTabSection = ({
+  label,
+  items,
+  onViewAll,
+}: {
+  label: string;
+  items: MediaItem[];
+  onViewAll: () => void;
+}) => (
+  <div className="mb-8">
+    <div className="mb-3 flex items-center justify-between">
+      <h3 className="text-lg font-medium opacity-90">{label}</h3>
+      <Button
+        variant="secondary"
+        className="flex items-center gap-1 px-2 py-1 text-sm"
+        onClick={onViewAll}
+      >
+        View all
+        <FontAwesomeIcon icon={faChevronRight} className="text-xs opacity-70" />
+      </Button>
+    </div>
+    <div className="h-[200px]">
+      <ItemElements
+        items={items.slice(0, 4)}
+        busy={false}
+        debug={`all-tab-section-${label}`}
+      />
+    </div>
+  </div>
+);
+
 export const AssetModal = ({
   isOpen,
   onClose,
   onAddAsset,
 }: AssetModalProps) => {
-  const [activeTab, setActiveTab] = useState("details");
+  const [activeLibraryTab, setActiveLibraryTab] = useState("library");
+  const [activeAssetTab, setActiveAssetTab] = useState("all");
+  const [searchTerm, setSearchTerm] = useState("");
 
-  const tabs = [
+  // Fetch objects for different categories
+  const { userObjects: userCharacters } = useUserObjects({
+    filterEngineCategories: [FilterEngineCategories.CHARACTER],
+    defaultErrorMessage: "Error fetching user characters",
+  });
+
+  const { userObjects: userObjects } = useUserObjects({
+    filterEngineCategories: [FilterEngineCategories.OBJECT],
+    defaultErrorMessage: "Error fetching user objects",
+  });
+
+  const { userObjects: userNature } = useUserObjects({
+    filterEngineCategories: [FilterEngineCategories.SET_DRESSING],
+    defaultErrorMessage: "Error fetching user nature assets",
+  });
+
+  const { featuredObjects: featuredCharacters } = useFeaturedObjects({
+    filterEngineCategories: [FilterEngineCategories.CHARACTER],
+    defaultErrorMessage: "Error fetching featured characters",
+  });
+
+  const { featuredObjects: featuredObjects } = useFeaturedObjects({
+    filterEngineCategories: [FilterEngineCategories.OBJECT],
+    defaultErrorMessage: "Error fetching featured objects",
+  });
+
+  const { featuredObjects: featuredNature } = useFeaturedObjects({
+    filterEngineCategories: [FilterEngineCategories.SET_DRESSING],
+    defaultErrorMessage: "Error fetching featured nature assets",
+  });
+
+  const libraryTabs = [
     { id: "library", label: "Library" },
     { id: "mine", label: "Mine" },
   ];
 
+  const assetTabs: AssetTab[] = [
+    { id: "all", label: "All", items: [] },
+    {
+      id: "character",
+      label: "Character",
+      engineCategory: FilterEngineCategories.CHARACTER,
+      items:
+        activeLibraryTab === "library"
+          ? (featuredCharacters ?? [])
+          : (userCharacters ?? []),
+    },
+    {
+      id: "skybox",
+      label: "Skybox",
+      items: demoSkyboxItems.value,
+    },
+    {
+      id: "nature",
+      label: "Nature",
+      engineCategory: FilterEngineCategories.SET_DRESSING,
+      items:
+        activeLibraryTab === "library"
+          ? (featuredNature ?? [])
+          : (userNature ?? []),
+    },
+    {
+      id: "objects",
+      label: "Objects",
+      engineCategory: FilterEngineCategories.OBJECT,
+      items:
+        activeLibraryTab === "library"
+          ? [...demoShapeItems.value, ...(featuredObjects ?? [])]
+          : (userObjects ?? []),
+    },
+  ];
+
+  // Combine all items for the "All" tab
+  const allItems = useMemo(() => {
+    return assetTabs
+      .filter((tab) => tab.id !== "all")
+      .flatMap((tab) => tab.items);
+  }, [assetTabs]);
+
+  // Update the items array for the "All" tab
+  assetTabs[0].items = allItems;
+
+  const currentTab =
+    assetTabs.find((tab) => tab.id === activeAssetTab) || assetTabs[0];
+
+  // Filter items based on search term
+  const displayedItems = useMemo(() => {
+    if (!searchTerm) {
+      return currentTab.items;
+    }
+
+    const searchLower = searchTerm.toLowerCase();
+    return currentTab.items.filter(
+      (item) =>
+        item.name?.toLowerCase().includes(searchLower) ||
+        item.description?.toLowerCase().includes(searchLower),
+    );
+  }, [currentTab.items, searchTerm]);
+
+  // Switch to "All" tab when searching
+  useEffect(() => {
+    if (searchTerm && activeAssetTab !== "all") {
+      setActiveAssetTab("all");
+    }
+  }, [searchTerm]);
+
+  const renderContent = () => {
+    if (activeAssetTab === "all" && !searchTerm) {
+      return (
+        <div className="space-y-2">
+          {assetTabs.slice(1).map((tab) => (
+            <AllTabSection
+              key={tab.id}
+              label={tab.label}
+              items={tab.items}
+              onViewAll={() => setActiveAssetTab(tab.id)}
+            />
+          ))}
+        </div>
+      );
+    }
+
+    return (
+      <ItemElements
+        items={displayedItems}
+        busy={false}
+        debug={`asset-modal-${currentTab.id}`}
+      />
+    );
+  };
+
   return (
     <TransitionDialogue
       isOpen={isOpen}
       onClose={onClose}
-      className="h-[500px] max-w-3xl"
+      className="h-[640px] max-w-5xl"
       childPadding={false}
     >
       <div className="grid h-full grid-cols-12 gap-3">
@@ -44,23 +219,40 @@ export const AssetModal = ({
             </Tooltip>
           </div>
           <hr className="my-2 w-full border-white/10" />
-          <div className="space-y-1">{/* Asset list will go here */}</div>
+          <div className="space-y-1">
+            {assetTabs.map((tab) => (
+              <Button
+                key={tab.id}
+                variant={activeAssetTab === tab.id ? "primary" : "secondary"}
+                className="w-full justify-start text-left"
+                onClick={() => setActiveAssetTab(tab.id)}
+              >
+                {tab.label}
+              </Button>
+            ))}
+          </div>
         </div>
         <div className="col-span-9 p-3 ps-0 pt-2">
           <div className="flex h-full flex-col">
             <div>
               <div className="flex items-center gap-4">
                 <TabSelector
-                  tabs={tabs}
-                  activeTab={activeTab}
-                  onTabChange={setActiveTab}
+                  tabs={libraryTabs}
+                  activeTab={activeLibraryTab}
+                  onTabChange={setActiveLibraryTab}
                   className="w-auto"
                 />
-                <Input placeholder="Search" className="grow" icon={faSearch} />
+                <Input
+                  placeholder="Search"
+                  className="grow"
+                  icon={faSearch}
+                  value={searchTerm}
+                  onChange={(e) => setSearchTerm(e.target.value)}
+                />
                 <CloseButton onClick={onClose} />
               </div>
-              <div className="space-y-4">
-                {/* Asset details will go here */}
+              <div className="mt-4 h-[480px] overflow-y-auto">
+                {renderContent()}
               </div>
             </div>
             <div className="mt-auto flex justify-end pt-4">
diff --git a/frontend/editor3d/app/pages/PageEnigma/comps/SidePanelTabs/sharedComps/ItemElement.tsx b/frontend/editor3d/app/pages/PageEnigma/comps/SidePanelTabs/sharedComps/ItemElement.tsx
index e221099886..1a2eec9581 100644
--- a/frontend/editor3d/app/pages/PageEnigma/comps/SidePanelTabs/sharedComps/ItemElement.tsx
+++ b/frontend/editor3d/app/pages/PageEnigma/comps/SidePanelTabs/sharedComps/ItemElement.tsx
@@ -39,7 +39,7 @@ export const ItemElement = ({ item }: Props) => {
 
   return (
     <div
-      className="group relative w-full cursor-pointer select-none overflow-hidden rounded-lg transition-all duration-200 hover:brightness-110"
+      className="group relative w-full cursor-pointer select-none overflow-hidden transition-all duration-200"
       onPointerDown={(event) => DndAsset.onPointerDown(event, item)}
     >
       {item.media_type && (
@@ -55,7 +55,7 @@ export const ItemElement = ({ item }: Props) => {
         />
       )}
 
-      <div className="pointer-events-none aspect-[4.5/5] w-full select-none bg-brand-secondary-500 object-cover object-center">
+      <div className="pointer-events-none aspect-[16/12] w-full select-none overflow-hidden rounded-lg border-2 border-white/10 bg-brand-secondary-500 object-cover object-center transition-all group-hover:border-brand-primary">
         {item.thumbnail && !imageError && (
           <img
             crossOrigin="anonymous"
@@ -66,7 +66,7 @@ export const ItemElement = ({ item }: Props) => {
           />
         )}
       </div>
-      <div className="pointer-events-none w-full select-none truncate bg-brand-secondary-950 px-2 py-1 text-center text-[12px] transition-all duration-200 group-hover:bg-brand-secondary-800">
+      <div className="pointer-events-none w-full select-none truncate py-1.5 text-start text-[13px] transition-all duration-200 ">
         {item.name || item.media_id}
       </div>
     </div>
diff --git a/frontend/editor3d/app/pages/PageEnigma/comps/SidePanelTabs/sharedComps/ItemElements.tsx b/frontend/editor3d/app/pages/PageEnigma/comps/SidePanelTabs/sharedComps/ItemElements.tsx
index 934b6f32c6..4658d9093c 100644
--- a/frontend/editor3d/app/pages/PageEnigma/comps/SidePanelTabs/sharedComps/ItemElements.tsx
+++ b/frontend/editor3d/app/pages/PageEnigma/comps/SidePanelTabs/sharedComps/ItemElements.tsx
@@ -1,6 +1,5 @@
 import { ItemElement } from "./ItemElement";
 import { MediaItem } from "~/pages/PageEnigma/models";
-import { dndSidePanelWidth, sidePanelWidth } from "~/pages/PageEnigma/signals";
 import { H4, P, LoadingDots } from "~/components";
 import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
 import { faEmptySet } from "@fortawesome/pro-solid-svg-icons";
@@ -24,29 +23,12 @@ export const ItemElements = ({
   onLoadMore,
   hasMore,
 }: Props) => {
-  const displayWidth =
-    dndSidePanelWidth.value > -1
-      ? dndSidePanelWidth.value
-      : sidePanelWidth.value;
+  const GRID_GAP = 12;
+  const ASPECT_RATIO = 16 / 12;
+  const TEXT_HEIGHT = 32;
+  const COLUMN_COUNT = 4;
 
-  const GRID_GAP = 8;
-  const ASPECT_RATIO = 4.5 / 5;
-  const TEXT_HEIGHT = 24;
-
-  const columnCount = getGridColumns(displayWidth);
-  const rowCount = Math.ceil(items.length / columnCount);
-
-  function getGridColumns(displayWidth: number): number {
-    if (displayWidth <= 280) {
-      return 2;
-    } else if (displayWidth <= 360) {
-      return 3;
-    } else if (displayWidth <= 440) {
-      return 4;
-    } else {
-      return 4;
-    }
-  }
+  const rowCount = Math.ceil(items.length / COLUMN_COUNT);
 
   const cellRenderer = ({
     columnIndex,
@@ -59,14 +41,20 @@ export const ItemElements = ({
     key: string;
     style: React.CSSProperties;
   }) => {
-    const index = rowIndex * columnCount + columnIndex;
+    const index = rowIndex * COLUMN_COUNT + columnIndex;
     if (index >= items.length) return null;
 
+    // Calculate dimensions for the container
+    const containerWidth = (style.width as number) - GRID_GAP;
+    const containerHeight = (style.height as number) - GRID_GAP;
+
     const adjustedStyle = {
       ...style,
-      padding: GRID_GAP / 2,
-      height: style.height as number,
-      boxSizing: "border-box" as const,
+      left: `${(style.left as number) + GRID_GAP / 2}px`,
+      top: `${(style.top as number) + GRID_GAP / 2}px`,
+      width: `${containerWidth}px`,
+      height: `${containerHeight}px`,
+      padding: 0,
     };
 
     return (
@@ -119,23 +107,23 @@ export const ItemElements = ({
     <div className={`h-full w-full ${className || ""}`}>
       <AutoSizer className="w-full">
         {({ height, width }) => {
-          const availableWidth = width - GRID_GAP * (columnCount - 1);
-          const cellWidth = Math.floor(availableWidth / columnCount);
+          // Calculate cell width accounting for gaps
+          const cellWidth = Math.floor(
+            (width - GRID_GAP * (COLUMN_COUNT + 1)) / COLUMN_COUNT,
+          );
           const imageHeight = Math.floor(cellWidth / ASPECT_RATIO);
-          const cellHeight = imageHeight + TEXT_HEIGHT;
+          const cellHeight = imageHeight + TEXT_HEIGHT + GRID_GAP;
 
           return (
             <Grid
               cellRenderer={cellRenderer}
-              columnCount={columnCount}
-              columnWidth={cellWidth}
-              height={height}
+              columnCount={COLUMN_COUNT}
+              columnWidth={cellWidth + GRID_GAP}
+              height={height - GRID_GAP}
               rowCount={rowCount}
               rowHeight={cellHeight}
               width={width}
               style={{ outline: "none" }}
-              columnGap={GRID_GAP}
-              rowGap={GRID_GAP}
               overscanRowCount={2}
               onScroll={handleScroll}
             />