diff --git a/backend/src/app/rpc/commands/files.clj b/backend/src/app/rpc/commands/files.clj
index 3d20987122..bc512c0b7f 100644
--- a/backend/src/app/rpc/commands/files.clj
+++ b/backend/src/app/rpc/commands/files.clj
@@ -552,7 +552,6 @@
       and p.team_id = ?
     order by f.modified_at desc")
 
-
 (defn- get-library-summary
   [cfg {:keys [id data] :as file}]
   (letfn [(assets-sample [assets limit]
diff --git a/frontend/playwright/data/dashboard/get-team-shared-files-10142.json b/frontend/playwright/data/dashboard/get-team-shared-files-10142.json
new file mode 100644
index 0000000000..4f974f3c9e
--- /dev/null
+++ b/frontend/playwright/data/dashboard/get-team-shared-files-10142.json
@@ -0,0 +1,43 @@
+{
+    "~#set": [
+        {
+            "~:team-id": "~uc7ce0794-0992-8105-8004-38e630f40f6d",
+            "~:name": "Lorem Ipsum",
+            "~:revn": 2,
+            "~:modified-at": "~m1739356261950",
+            "~:vern": 0,
+            "~:id": "~u69b52fcf-7de0-81cd-8005-b9b180a0bfb5",
+            "~:thumbnail-id": "~u55bb9e08-6eed-4a64-a94d-2bcce7006e79",
+            "~:is-shared": true,
+            "~:project-id": "~u1ad2931c-eb80-8098-8005-b86c1d9d26c2",
+            "~:created-at": "~m1739356217030",
+            "~:library-summary": {
+                "~:components": {
+                    "~:count": 0,
+                    "~:sample": []
+                },
+                "~:media": {
+                    "~:count": 0,
+                    "~:sample": []
+                },
+                "~:colors": {
+                    "~:count": 1,
+                    "~:sample": [
+                        {
+                            "~:path": "",
+                            "~:color": "#0087ff",
+                            "~:name": "#0087ff",
+                            "~:modified-at": "~m1739356244863",
+                            "~:opacity": 1,
+                            "~:id": "~u0449ccff-62fe-805c-8005-b9b194b094dd"
+                        }
+                    ]
+                },
+                "~:typographies": {
+                    "~:count": 0,
+                    "~:sample": []
+                }
+            }
+        }
+    ]
+}
diff --git a/frontend/playwright/ui/pages/DashboardPage.js b/frontend/playwright/ui/pages/DashboardPage.js
index 9dfde88439..f297218d3e 100644
--- a/frontend/playwright/ui/pages/DashboardPage.js
+++ b/frontend/playwright/ui/pages/DashboardPage.js
@@ -72,7 +72,7 @@ export class DashboardPage extends BaseWebSocketPage {
 
     this.draftsLink = this.sidebar.getByText("Drafts");
     this.fontsLink = this.sidebar.getByText("Fonts");
-    this.libsLink = this.sidebar.getByText("Libraries");
+    this.librariesLink = this.sidebar.getByText("Libraries");
 
     this.searchButton = page.getByRole("button", { name: "dashboard-search" });
     this.searchInput = page.getByPlaceholder("Search…");
@@ -281,6 +281,13 @@ export class DashboardPage extends BaseWebSocketPage {
 
     await this.userProfileOption.click();
   }
+
+  async goToLibraries() {
+    await this.page.goto(
+      `#/dashboard/libraries?team-id=${DashboardPage.anyTeamId}`,
+    );
+    await expect(this.mainHeading).toHaveText("Libraries");
+  }
 }
 
 export default DashboardPage;
diff --git a/frontend/playwright/ui/specs/dashboard-libraries.spec.js b/frontend/playwright/ui/specs/dashboard-libraries.spec.js
new file mode 100644
index 0000000000..d30f6e82c0
--- /dev/null
+++ b/frontend/playwright/ui/specs/dashboard-libraries.spec.js
@@ -0,0 +1,33 @@
+import { test, expect } from "@playwright/test";
+import DashboardPage from "../pages/DashboardPage";
+
+test.beforeEach(async ({ page }) => {
+  await DashboardPage.init(page);
+  await DashboardPage.mockRPC(
+    page,
+    "get-profile",
+    "logged-in-user/get-profile-logged-in-no-onboarding.json",
+  );
+});
+
+test("BUG 10421 - Fix libraries context menu", async ({ page }) => {
+  const dashboardPage = new DashboardPage(page);
+  await dashboardPage.mockRPC(
+    "get-team-shared-files?team-id=*",
+    "dashboard/get-team-shared-files-10142.json",
+  );
+
+  await dashboardPage.mockRPC(
+    "get-all-projects",
+    "dashboard/get-all-projects.json",
+  );
+
+  await dashboardPage.goToLibraries();
+
+  const libraryItem = page.getByTitle(/Lorem Ipsum/);
+
+  await expect(libraryItem).toBeVisible();
+  await libraryItem.getByRole("button", { name: "Options" }).click();
+
+  await expect(page.getByText("Rename")).toBeVisible();
+});
diff --git a/frontend/playwright/ui/visual-specs/visual-dashboard.spec.js b/frontend/playwright/ui/visual-specs/visual-dashboard.spec.js
index 44bfb9abb0..50ed19787f 100644
--- a/frontend/playwright/ui/visual-specs/visual-dashboard.spec.js
+++ b/frontend/playwright/ui/visual-specs/visual-dashboard.spec.js
@@ -47,7 +47,7 @@ test("User goes to an empty libraries page", async ({ page }) => {
   await dashboardPage.setupLibrariesEmpty();
 
   await dashboardPage.goToDashboard();
-  await dashboardPage.libsLink.click();
+  await dashboardPage.librariesLink.click();
 
   await expect(dashboardPage.mainHeading).toHaveText("Libraries");
   await expect(dashboardPage.page).toHaveScreenshot();
@@ -100,7 +100,7 @@ test("User goes to a full library page", async ({ page }) => {
   await dashboardPage.setupDashboardFull();
 
   await dashboardPage.goToDashboard();
-  await dashboardPage.libsLink.click();
+  await dashboardPage.librariesLink.click();
 
   await expect(dashboardPage.mainHeading).toHaveText("Libraries");
   await expect(dashboardPage.page).toHaveScreenshot();
diff --git a/frontend/src/app/main/data/dashboard.cljs b/frontend/src/app/main/data/dashboard.cljs
index ddd2206b59..d42f307251 100644
--- a/frontend/src/app/main/data/dashboard.cljs
+++ b/frontend/src/app/main/data/dashboard.cljs
@@ -187,8 +187,8 @@
   (ptk/reify ::show-file-menu-with-position
     ptk/UpdateEvent
     (update [_ state]
-      (update state :dashboard-local
-              assoc :menu-open true
+      (update state :dashboard-local assoc
+              :menu-open true
               :menu-pos pos
               :file-id file-id))))
 
diff --git a/frontend/src/app/main/data/project.cljs b/frontend/src/app/main/data/project.cljs
index 74a927d8d0..81db7856b4 100644
--- a/frontend/src/app/main/data/project.cljs
+++ b/frontend/src/app/main/data/project.cljs
@@ -55,7 +55,6 @@
           (dissoc state :current-project-id)
           state)))))
 
-
 (defn- files-fetched
   [project-id files]
   (ptk/reify ::files-fetched
@@ -67,14 +66,14 @@
                                                      (assoc project :count (count files))))))))
 
 (defn fetch-files
-  [project-id]
-  (assert (uuid? project-id) "expected valid uuid for `project-id`")
-  (ptk/reify ::fetch-files
-    ptk/WatchEvent
-    (watch [_ _ _]
-      (->> (rp/cmd! :get-project-files {:project-id project-id})
-           (rx/map (partial files-fetched project-id))))))
-
+  ([] (fetch-files nil))
+  ([project-id]
+   (ptk/reify ::fetch-files
+     ptk/WatchEvent
+     (watch [_ state _]
+       (when-let [project-id (or project-id (:current-project-id state))]
+         (->> (rp/cmd! :get-project-files {:project-id project-id})
+              (rx/map (partial files-fetched project-id))))))))
 
 
 
diff --git a/frontend/src/app/main/data/team.cljs b/frontend/src/app/main/data/team.cljs
index 5ff7cf097d..50af94a444 100644
--- a/frontend/src/app/main/data/team.cljs
+++ b/frontend/src/app/main/data/team.cljs
@@ -227,26 +227,6 @@
         (->> (rp/cmd! :get-webhooks {:team-id team-id})
              (rx/map (partial webhooks-fetched team-id)))))))
 
-(defn- shared-files-fetched
-  [files]
-  (ptk/reify ::shared-files-fetched
-    ptk/UpdateEvent
-    (update [_ state]
-      (let [files (d/index-by :id files)]
-        (assoc state :shared-files files)))))
-
-(defn fetch-shared-files
-  "Event mainly used for fetch a list of shared libraries for a team,
-  this list does not includes the content of the library per se.  It
-  is used mainly for show available libraries and a summary of it."
-  []
-  (ptk/reify ::fetch-shared-files
-    ptk/WatchEvent
-    (watch [_ state _]
-      (let [team-id (:current-team-id state)]
-        (->> (rp/cmd! :get-team-shared-files {:team-id team-id})
-             (rx/map shared-files-fetched))))))
-
 ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
 ;; Data Modification
 ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
@@ -567,6 +547,25 @@
                            (rx/of (fetch-webhooks)))))
              (rx/catch on-error))))))
 
-
+(defn- shared-files-fetched
+  [files]
+  (ptk/reify ::shared-files-fetched
+    ptk/UpdateEvent
+    (update [_ state]
+      (let [files (d/index-by :id files)]
+        (update state :shared-files merge files)))))
+
+(defn fetch-shared-files
+  "Event mainly used for fetch a list of shared libraries for a team,
+  this list does not includes the content of the library per se.  It
+  is used mainly for show available libraries and a summary of it."
+  ([] (fetch-shared-files nil))
+  ([team-id]
+   (ptk/reify ::fetch-shared-files
+     ptk/WatchEvent
+     (watch [_ state _]
+       (when-let [team-id (or team-id (:current-team-id state))]
+         (->> (rp/cmd! :get-team-shared-files {:team-id team-id})
+              (rx/map shared-files-fetched)))))))
 
 
diff --git a/frontend/src/app/main/ui/dashboard/grid.cljs b/frontend/src/app/main/ui/dashboard/grid.cljs
index 5d8ed5a0ef..bc59636340 100644
--- a/frontend/src/app/main/ui/dashboard/grid.cljs
+++ b/frontend/src/app/main/ui/dashboard/grid.cljs
@@ -316,19 +316,25 @@
          (fn [event]
            (dom/stop-propagation event)
            (dom/prevent-default event)
+
            (when-not selected?
              (when-not (kbd/shift? event)
                (st/emit! (dd/clear-selected-files)))
-             (st/emit! (dd/toggle-file-select file)))
+             (do
+               (st/emit! (dd/toggle-file-select file))))
+
+           (let [client-position
+                 (dom/get-client-position event)
+
+                 position
+                 (if (and (nil? (:y client-position)) (nil? (:x client-position)))
+                   (let [target-element (dom/get-target event)
+                         points         (dom/get-bounding-rect target-element)
+                         y              (:top points)
+                         x              (:left points)]
+                     (gpt/point x y))
+                   client-position)]
 
-           (let [client-position (dom/get-client-position event)
-                 position (if (and (nil? (:y client-position)) (nil? (:x client-position)))
-                            (let [target-element (dom/get-target event)
-                                  points         (dom/get-bounding-rect target-element)
-                                  y              (:top points)
-                                  x              (:left points)]
-                              (gpt/point x y))
-                            client-position)]
              (st/emit! (dd/show-file-menu-with-position file-id position)))))
 
         on-context-menu
@@ -401,50 +407,53 @@
           [:h3 (:name file)])
         [:& grid-item-metadata {:modified-at (:modified-at file)}]]
 
-       (when-not is-library-view
-         [:div {:class (stl/css-case :project-th-actions true :force-display (:menu-open dashboard-local))}
-          [:div
-           {:class (stl/css :project-th-icon :menu)
-            :tab-index "0"
-            :ref menu-ref
-            :id (str file-id "-action-menu")
-            :on-click on-menu-click
-            :on-key-down (fn [event]
-                           (when (kbd/enter? event)
-                             (dom/stop-propagation event)
-                             (on-menu-click event)))}
-           menu-icon
-           (when (and selected? file-menu-open?)
+       [:div {:class (stl/css-case :project-th-actions true :force-display (:menu-open dashboard-local))}
+        [:div
+         {:class (stl/css :project-th-icon :menu)
+          :tab-index "0"
+          :role "button"
+          :aria-label (tr "dashboard.options")
+          :ref menu-ref
+          :id (str file-id "-action-menu")
+          :on-click on-menu-click
+          :on-key-down (fn [event]
+                         (when (kbd/enter? event)
+                           (dom/stop-propagation event)
+                           (on-menu-click event)))}
+         menu-icon
+         (when (and selected? file-menu-open?)
            ;; When the menu is open we disable events in the dashboard. We need to force pointer events
            ;; so the menu can be handled
-             [:div {:style {:pointer-events "all"}}
-              [:> file-menu* {:files (vals selected-files)
-                              :left (+ 24 (:x (:menu-pos dashboard-local)))
-                              :top (:y (:menu-pos dashboard-local))
-                              :can-edit can-edit
-                              :navigate true
-                              :on-edit on-edit
-                              :on-menu-close on-menu-close
-                              :origin origin
-                              :parent-id (dm/str file-id "-action-menu")}]])]])]]]))
+           [:div {:style {:pointer-events "all"}}
+            [:> file-menu* {:files (vals selected-files)
+                            :left (+ 24 (:x (:menu-pos dashboard-local)))
+                            :top (:y (:menu-pos dashboard-local))
+                            :can-edit can-edit
+                            :navigate true
+                            :on-edit on-edit
+                            :on-menu-close on-menu-close
+                            :origin origin
+                            :parent-id (dm/str file-id "-action-menu")}]])]]]]]))
 
 (mf/defc grid
   {::mf/props :obj}
   [{:keys [files project origin limit create-fn can-edit selected-files]}]
   (let [dragging?  (mf/use-state false)
-        project-id (:id project)
+        project-id (get project :id)
+        team-id    (get project :team-id)
+
         node-ref   (mf/use-var nil)
 
         on-finish-import
         (mf/use-fn
+         (mf/deps project-id team-id)
          (fn []
            (st/emit! (dpj/fetch-files project-id)
-                     (dtm/fetch-shared-files)
+                     (dtm/fetch-shared-files team-id)
                      (dd/clear-selected-files))))
 
-
-
-        import-files (use-import-file project-id on-finish-import)
+        import-files
+        (use-import-file project-id on-finish-import)
 
         on-drag-enter
         (mf/use-fn
diff --git a/frontend/src/app/main/ui/dashboard/libraries.cljs b/frontend/src/app/main/ui/dashboard/libraries.cljs
index 1ba3e856f1..dd9464c60c 100644
--- a/frontend/src/app/main/ui/dashboard/libraries.cljs
+++ b/frontend/src/app/main/ui/dashboard/libraries.cljs
@@ -15,23 +15,38 @@
    [app.main.ui.hooks :as hooks]
    [app.util.dom :as dom]
    [app.util.i18n :as i18n :refer [tr]]
+   [okulary.core :as l]
    [rumext.v2 :as mf]))
 
+(def ^:private ref:selected-files
+  (l/derived (fn [state]
+               (let [selected (get state :selected-files)
+                     files    (get state :shared-files)]
+                 (refs/extract-selected-files files selected)))
+             st/state))
+
 (mf/defc libraries-page*
   {::mf/props :obj}
   [{:keys [team default-project]}]
   (let [files
         (mf/deref refs/shared-files)
 
-        files
-        (mf/with-memo [files]
-          (->> (vals files)
-               (sort-by :modified-at)
-               (reverse)))
+        team-id
+        (get team :id)
 
         can-edit
         (-> team :permissions :can-edit)
 
+        files
+        (mf/with-memo [files team-id]
+          (->> (vals files)
+               (filter #(= team-id (:team-id %)))
+               (sort-by :modified-at)
+               (reverse)))
+
+        selected-files
+        (mf/deref ref:selected-files)
+
         [rowref limit]
         (hooks/use-dynamic-grid-item-width 350)]
 
@@ -41,16 +56,19 @@
                     (:name team))]
         (dom/set-html-title (tr "title.dashboard.shared-libraries" tname))))
 
-    (mf/with-effect [team]
-      (st/emit! (dtm/fetch-shared-files)
+    (mf/with-effect [team-id]
+      (st/emit! (dtm/fetch-shared-files team-id)
                 (dd/clear-selected-files)))
 
     [:*
      [:header {:class (stl/css :dashboard-header) :data-testid "dashboard-header"}
       [:div#dashboard-libraries-title {:class (stl/css :dashboard-title)}
        [:h1 (tr "dashboard.libraries-title")]]]
-     [:section {:class (stl/css :dashboard-container :no-bg :dashboard-shared)  :ref rowref}
+
+     [:section {:class (stl/css :dashboard-container :no-bg :dashboard-shared)
+                :ref rowref}
       [:& grid {:files files
+                :selected-files selected-files
                 :project default-project
                 :origin :libraries
                 :limit limit
diff --git a/frontend/src/app/main/ui/workspace/libraries.cljs b/frontend/src/app/main/ui/workspace/libraries.cljs
index 5a07a1a256..963385602f 100644
--- a/frontend/src/app/main/ui/workspace/libraries.cljs
+++ b/frontend/src/app/main/ui/workspace/libraries.cljs
@@ -142,6 +142,8 @@
   (let [id         (:id library)
         importing? (deref importing)
 
+        team-id    (mf/use-ctx ctx/current-team-id)
+
         on-error
         (mf/use-fn
          (fn [_]
@@ -150,11 +152,13 @@
 
         on-success
         (mf/use-fn
+         (mf/deps team-id)
          (fn [_]
-           (st/emit! (dtm/fetch-shared-files))))
+           (st/emit! (dtm/fetch-shared-files team-id))))
 
         import-library
         (mf/use-fn
+         (mf/deps on-success on-error)
          (fn [_]
            (reset! importing id)
            (st/emit! (dd/clone-template
@@ -565,6 +569,7 @@
         file           (deref refs/file)
 
         file-id        (:id file)
+        team-id        (:team-id file)
         shared?        (:is-shared file)
 
         linked-libraries
@@ -611,8 +616,8 @@
                   :id "updates"
                   :content updates-tab}]]
 
-    (mf/with-effect []
-      (st/emit! (dtm/fetch-shared-files)))
+    (mf/with-effect [team-id]
+      (st/emit! (dtm/fetch-shared-files team-id)))
 
     [:div {:class (stl/css :modal-overlay)
            :on-click close-dialog-outside