diff --git a/frontend/src/app/main/refs.cljs b/frontend/src/app/main/refs.cljs
index 3e6dbf02c3..af5207ffb1 100644
--- a/frontend/src/app/main/refs.cljs
+++ b/frontend/src/app/main/refs.cljs
@@ -244,6 +244,9 @@
   [id]
   (l/derived #(wtts/get-workspace-theme id %) st/state))
 
+(def workspace-token-theme-groups
+  (l/derived wtts/get-workspace-theme-groups st/state))
+
 (def workspace-active-theme-ids
   (l/derived wtts/get-active-theme-ids st/state))
 
diff --git a/frontend/src/app/main/ui/workspace/tokens/common.cljs b/frontend/src/app/main/ui/workspace/tokens/common.cljs
index cd955330c4..7f1c787796 100644
--- a/frontend/src/app/main/ui/workspace/tokens/common.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/common.cljs
@@ -8,8 +8,19 @@
   (:require-macros [app.main.style :as stl])
   (:require
    [app.common.data :as d]
+   [app.common.data.macros :as dm]
+   [app.main.data.shortcuts :as dsc]
+   [app.main.store :as st]
+   [app.main.ui.components.dropdown :refer [dropdown]]
+   [app.main.ui.icons :as i]
+   [app.util.dom :as dom]
+   [app.util.globals :as globals]
+   [app.util.keyboard :as kbd]
    [cuerdas.core :as str]
-   [rumext.v2 :as mf]))
+   [goog.events :as events]
+   [rumext.v2 :as mf])
+  (:import
+   goog.events.EventType))
 
 ;; Helpers ---------------------------------------------------------------------
 
@@ -30,11 +41,91 @@
             [(keyword (str/camel (name k))) v]
             [k v])))))
 
+(defn direction-select
+  "Returns next `n` in `direction` while wrapping around at the last item at the count of `coll`.
+
+  `direction` accepts `:up` or `:down`."
+  [direction n coll]
+  (let [last-n (dec (count coll))
+        next-n (case direction
+                 :up (dec n)
+                 :down (inc n))
+        wrap-around-n (cond
+                        (neg? next-n) last-n
+                        (> next-n last-n) 0
+                        :else next-n)]
+    wrap-around-n))
+
+(defn use-arrow-highlight [{:keys [shortcuts-key options on-select]}]
+  (let [highlighted* (mf/use-state nil)
+        highlighted (deref highlighted*)
+        on-dehighlight #(reset! highlighted* nil)
+        on-keyup (fn [event]
+                   (cond
+                     (and (kbd/enter? event) highlighted) (on-select (nth options highlighted))
+                     (kbd/up-arrow? event) (do
+                                             (dom/prevent-default event)
+                                             (->> (direction-select :up (or highlighted 0) options)
+                                                  (reset! highlighted*)))
+                     (kbd/down-arrow? event) (do
+                                               (dom/prevent-default event)
+                                               (->> (direction-select :down (or highlighted -1) options)
+                                                    (reset! highlighted*)))))]
+    (mf/with-effect [highlighted]
+      (let [shortcuts-key shortcuts-key
+            keys [(events/listen globals/document EventType.KEYUP on-keyup)
+                  (events/listen globals/document EventType.KEYDOWN dom/prevent-default)]]
+        (st/emit! (dsc/push-shortcuts shortcuts-key {}))
+        (fn []
+          (doseq [key keys]
+            (events/unlistenByKey key))
+          (st/emit! (dsc/pop-shortcuts shortcuts-key)))))
+    {:highlighted highlighted
+     :on-dehighlight on-dehighlight}))
+
+(defn use-dropdown-open-state []
+  (let [open? (mf/use-state false)
+        on-open (mf/use-fn #(reset! open? true))
+        on-close (mf/use-fn #(reset! open? false))
+        on-toggle (mf/use-fn #(swap! open? not))]
+    {:dropdown-open? @open?
+     :on-open-dropdown on-open
+     :on-close-dropdown on-close
+     :on-toggle-dropdown on-toggle}))
+
 ;; Components ------------------------------------------------------------------
 
+(mf/defc dropdown-select
+  [{:keys [id _shortcuts-key options on-close element-ref on-select] :as props}]
+  (let [{:keys [highlighted on-dehighlight]} (use-arrow-highlight props)]
+    [:& dropdown {:show true
+                  :on-close on-close}
+     [:> :div {:class (stl/css :dropdown)
+               :on-mouse-enter on-dehighlight
+               :ref element-ref}
+      [:ul {:class (stl/css :dropdown-list)}
+       (for [[index item] (d/enumerate options)]
+         (cond
+           (= :separator item)
+           [:li {:class (stl/css :separator)
+                 :key (dm/str id "-" index)}]
+           :else
+           (let [{:keys [label selected? disabled?]} item
+                 highlighted? (= highlighted index)]
+             [:li
+              {:key (str id "-" index)
+               :class (stl/css-case :dropdown-element true
+                                    :is-selected selected?
+                                    :is-highlighted highlighted?)
+               :data-label label
+               :disabled disabled?
+               :on-click #(on-select item)}
+              [:span {:class (stl/css :label)} label]
+              [:span {:class (stl/css :check-icon)} i/tick]])))]]]))
+
 (mf/defc labeled-input
   {::mf/wrap-props false}
-  [{:keys [label input-props auto-complete? error?]}]
+  [{:keys [label input-props auto-complete? error? icon render-right]}]
   (let [input-props (cond-> input-props
                       :always camel-keys
                       ;; Disable auto-complete on form fields for proprietary password managers
@@ -45,4 +136,6 @@
     [:label {:class (stl/css-case :labeled-input true
                                   :labeled-input-error error?)}
      [:span {:class (stl/css :label)} label]
-     [:& :input input-props]]))
+     [:& :input input-props]
+     (when render-right
+       [:& render-right])]))
diff --git a/frontend/src/app/main/ui/workspace/tokens/common.scss b/frontend/src/app/main/ui/workspace/tokens/common.scss
index 9398a2bb23..bb067e6832 100644
--- a/frontend/src/app/main/ui/workspace/tokens/common.scss
+++ b/frontend/src/app/main/ui/workspace/tokens/common.scss
@@ -34,3 +34,82 @@
     @extend .button-icon;
   }
 }
+
+.dropdown {
+  @extend .dropdown-wrapper;
+  max-height: $s-320;
+  width: 100%;
+  margin-top: $s-4;
+
+  ul {
+    margin: 0;
+  }
+
+  .separator {
+    margin: 0;
+    height: $s-12;
+  }
+
+  .dropdown-element {
+    @extend .dropdown-element-base;
+    color: var(--menu-foreground-color-rest);
+    display: flex;
+
+    & > span {
+      display: flex;
+      justify-content: flex-start;
+      align-content: center;
+    }
+
+    .label,
+    .value {
+      width: fit-content;
+    }
+
+    .label {
+      text-transform: unset;
+      flex: 1;
+    }
+
+    .value {
+      text-align: right;
+      justify-content: flex-end;
+      flex: 0.6;
+    }
+
+    .check-icon {
+      @include flexCenter;
+      translate: -$s-4 0;
+      svg {
+        @extend .button-icon-small;
+        visibility: hidden;
+        stroke: var(--icon-foreground);
+      }
+    }
+
+    &.is-selected {
+      color: var(--menu-foreground-color);
+      .check-icon svg {
+        stroke: var(--menu-foreground-color);
+        visibility: visible;
+      }
+    }
+
+    &:hover {
+      background-color: var(--menu-background-color-hover);
+      color: var(--menu-foreground-color-hover);
+      .check-icon svg {
+        stroke: var(--menu-foreground-color-hover);
+      }
+    }
+    &.is-highlighted {
+      background-color: var(--button-primary-background-color-rest);
+      span {
+        color: var(--button-primary-foreground-color-rest);
+      }
+      .check-icon svg {
+        stroke: var(--button-primary-foreground-color-rest);
+      }
+    }
+  }
+}
diff --git a/frontend/src/app/main/ui/workspace/tokens/modals/themes.cljs b/frontend/src/app/main/ui/workspace/tokens/modals/themes.cljs
index 91c9498261..47e00588da 100644
--- a/frontend/src/app/main/ui/workspace/tokens/modals/themes.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/modals/themes.cljs
@@ -13,13 +13,14 @@
    [app.main.store :as st]
    [app.main.ui.components.radio-buttons :refer [radio-button radio-buttons]]
    [app.main.ui.icons :as i]
-   [app.main.ui.workspace.tokens.common :refer [labeled-input]]
+   [app.main.ui.workspace.tokens.common :refer [labeled-input] :as wtco]
    [app.main.ui.workspace.tokens.sets :as wts]
    [app.main.ui.workspace.tokens.token-set :as wtts]
    [app.util.dom :as dom]
    [rumext.v2 :as mf]
    [cuerdas.core :as str]
-   [app.main.ui.workspace.tokens.sets-context :as sets-context]))
+   [app.main.ui.workspace.tokens.sets-context :as sets-context]
+   [app.main.ui.shapes.group :as group]))
 
 (def ^:private chevron-icon
   (i/icon-xref :arrow (stl/css :chevron-icon)))
@@ -108,8 +109,10 @@
        "Create theme"]]]))
 
 (mf/defc edit-theme
-  [{:keys [token-sets theme on-back on-submit] :as props}]
-  (let [edit? (some? (:id theme))
+  [{:keys [token-sets theme theme-groups on-back on-submit]}]
+  (let [{:keys [dropdown-open? on-open-dropdown on-close-dropdown on-toggle-dropdown]} (wtco/use-dropdown-open-state)
+
+        edit? (some? (:id theme))
         theme-state (mf/use-state {:token-sets token-sets
                                    :theme theme})
         disabled? (-> (get-in @theme-state [:theme :name])
@@ -127,6 +130,7 @@
         on-change-field (fn [field]
                           (fn [e]
                             (swap! theme-state (fn [st] (assoc-in st field (dom/get-target-val e))))))
+        group-input-ref (mf/use-ref)
         on-update-group (on-change-field [:theme :group])
         on-update-name (on-change-field [:theme :name])
         on-save-form (mf/use-callback
@@ -151,9 +155,30 @@
                  :on-click on-back}
         chevron-icon "Back"]]
       [:div {:class (stl/css :edit-theme-inputs-wrapper)}
-       [:& labeled-input {:label "Group"
-                          :input-props {:default-value (:group theme)
-                                        :on-change on-update-group}}]
+       [:div {:class (stl/css :group-input-wrapper)}
+        (when dropdown-open?
+          [:& wtco/dropdown-select {:id ::groups-dropdown
+                                    :shortcuts-key ::groups-dropdown
+                                    :options (map (fn [group]
+                                                    {:label group
+                                                     :value group})
+                                                  theme-groups)
+                                    :on-select (fn [{:keys [value]}]
+                                                 (set! (.-value (mf/ref-val group-input-ref)) value)
+                                                 (swap! theme-state assoc-in [:theme :group] value))
+                                    :on-close on-close-dropdown}])
+        [:& labeled-input {:label "Group"
+                           :input-props {:ref group-input-ref
+                                         :default-value (:group theme)
+                                         :on-change on-update-group}
+                           :render-right (when (seq theme-groups)
+                                           (mf/fnc []
+                                             [:button {:class (stl/css :group-drop-down-button)
+                                                       :type "button"
+                                                       :on-click (fn [e]
+                                                                   (dom/stop-propagation e)
+                                                                   (on-toggle-dropdown))}
+                                              i/arrow]))}]]
        [:& labeled-input {:label "Theme"
                           :input-props {:default-value (:name theme)
                                         :on-change on-update-name}}]]
@@ -189,20 +214,24 @@
   [{:keys [state set-state]}]
   (let [{:keys [theme-id]} @state
         token-sets (mf/deref refs/workspace-ordered-token-sets)
-        theme (mf/deref (refs/workspace-token-theme theme-id))]
+        theme (mf/deref (refs/workspace-token-theme theme-id))
+        theme-groups (mf/deref refs/workspace-token-theme-groups)]
     [:& edit-theme
      {:token-sets token-sets
       :theme theme
+      :theme-groups theme-groups
       :on-back #(set-state (constantly {:type :themes-overview}))
       :on-submit #(st/emit! (wdt/update-token-theme %))}]))
 
 (mf/defc create-theme
   [{:keys [set-state]}]
   (let [token-sets (mf/deref refs/workspace-ordered-token-sets)
-        theme {:name "" :sets #{}}]
+        theme {:name "" :sets #{}}
+        theme-groups (mf/deref refs/workspace-token-theme-groups)]
     [:& edit-theme
      {:token-sets token-sets
       :theme theme
+      :theme-groups theme-groups
       :on-back #(set-state (constantly {:type :themes-overview}))
       :on-submit #(st/emit! (wdt/create-token-theme %))}]))
 
diff --git a/frontend/src/app/main/ui/workspace/tokens/modals/themes.scss b/frontend/src/app/main/ui/workspace/tokens/modals/themes.scss
index 43844c3927..ca41bd82e4 100644
--- a/frontend/src/app/main/ui/workspace/tokens/modals/themes.scss
+++ b/frontend/src/app/main/ui/workspace/tokens/modals/themes.scss
@@ -211,3 +211,22 @@ hr {
     }
   }
 }
+
+.group-input-wrapper {
+  position: relative;
+}
+
+.group-drop-down-button {
+  @include buttonStyle;
+  width: $s-24;
+  height: 100%;
+
+  padding: 0;
+  margin: 0 $s-6;
+
+  svg {
+    @extend .button-icon-small;
+    transform: rotate(90deg);
+    fill: var(--icon-foreground);
+  }
+}
diff --git a/frontend/src/app/main/ui/workspace/tokens/token_set.cljs b/frontend/src/app/main/ui/workspace/tokens/token_set.cljs
index 62eb5def4b..ee2678c210 100644
--- a/frontend/src/app/main/ui/workspace/tokens/token_set.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/token_set.cljs
@@ -18,6 +18,14 @@
 (defn get-workspace-themes-index [state]
   (get-in state [:workspace-data :token-themes-index] {}))
 
+(defn get-workspace-theme-groups [state]
+  (reduce
+   (fn [acc {:keys [group]}]
+     (if group
+       (conj acc group)
+       acc))
+   #{} (vals (get-workspace-themes-index state))))
+
 (defn get-workspace-token-set-groups [state]
   (get-in state [:workspace-data :token-set-groups]))