diff --git a/frontend/src/components/Dropdown.tsx b/frontend/src/components/Dropdown.tsx
index a6776f58..7dcaefc4 100644
--- a/frontend/src/components/Dropdown.tsx
+++ b/frontend/src/components/Dropdown.tsx
@@ -78,6 +78,7 @@ function Dropdown<T extends DropdownOption>({
   const searchRef = useRef<HTMLInputElement>(null);
   const [open, setOpen] = useState(false);
   const [query, setQuery] = useState('');
+  const [dropUp, setDropUp] = useState(false);
 
   const radius = rounded === '3xl' ? 'rounded-3xl' : 'rounded-xl';
   const radiusTop = rounded === '3xl' ? 'rounded-t-3xl' : 'rounded-t-xl';
@@ -90,14 +91,23 @@ function Dropdown<T extends DropdownOption>({
         setQuery('');
       }
     };
-    document.addEventListener('mousedown', handler);
-    return () => document.removeEventListener('mousedown', handler);
+    document.addEventListener('mousedown', handler, true);
+    return () => document.removeEventListener('mousedown', handler, true);
   }, []);
 
   useEffect(() => {
     if (open && searchable && searchRef.current) searchRef.current.focus();
   }, [open, searchable]);
 
+  const handleToggle = () => {
+    if (!open && ref.current) {
+      const rect = ref.current.getBoundingClientRect();
+      const spaceBelow = window.innerHeight - rect.bottom;
+      setDropUp(spaceBelow < 220);
+    }
+    setOpen((v) => !v);
+  };
+
   const filtered = useMemo(() => {
     if (!searchable || !query.trim()) return options;
     const q = query.toLowerCase();
@@ -110,8 +120,8 @@ function Dropdown<T extends DropdownOption>({
     <div className={`relative ${size}`} ref={ref}>
       <button
         type="button"
-        onClick={() => setOpen((v) => !v)}
-        className={`border-border bg-card text-foreground flex w-full cursor-pointer items-center justify-between border px-5 py-3 ${open ? radiusTop : radius}`}
+        onClick={handleToggle}
+        className={`border-border bg-card text-foreground flex w-full cursor-pointer items-center justify-between border px-5 py-3 ${open ? (dropUp ? radiusBottom : radiusTop) : radius}`}
       >
         <span
           className={`truncate ${contentSize} ${displayValue ? '' : 'text-muted-foreground'}`}
@@ -125,7 +135,11 @@ function Dropdown<T extends DropdownOption>({
 
       {open && (
         <div
-          className={`border-border bg-card absolute inset-x-0 z-20 -mt-px overflow-hidden border border-t-0 shadow-lg ${radiusBottom}`}
+          className={`border-border bg-card absolute inset-x-0 z-20 overflow-hidden border shadow-lg ${
+            dropUp
+              ? `bottom-full -mt-px border-b-0 ${radiusTop}`
+              : `-mt-px border-t-0 ${radiusBottom}`
+          }`}
         >
           {searchable && (
             <div className="flex items-center px-3 py-2">
diff --git a/frontend/src/components/SkeletonLoader.tsx b/frontend/src/components/SkeletonLoader.tsx
index ac7a8ffe..0510f892 100644
--- a/frontend/src/components/SkeletonLoader.tsx
+++ b/frontend/src/components/SkeletonLoader.tsx
@@ -10,7 +10,9 @@ interface SkeletonLoaderProps {
     | 'chatbot'
     | 'dropdown'
     | 'chunkCards'
-    | 'sourceCards';
+    | 'sourceCards'
+    | 'toolCards'
+    | 'addToolCards';
 }
 
 const SkeletonLoader: React.FC<SkeletonLoaderProps> = ({
@@ -237,6 +239,55 @@ const SkeletonLoader: React.FC<SkeletonLoaderProps> = ({
     </>
   );
 
+  const renderAddToolCards = () => (
+    <>
+      {Array.from({ length: count }).map((_, idx) => (
+        <div
+          key={`add-tool-skel-${idx}`}
+          className="border-light-gainsboro dark:border-arsenic flex h-52 w-full animate-pulse flex-col justify-between rounded-2xl border p-6"
+        >
+          <div className="w-full">
+            <div className="flex w-full items-center justify-between px-1">
+              <div className="h-6 w-6 rounded bg-gray-300 dark:bg-gray-600"></div>
+            </div>
+            <div className="mt-[9px] space-y-2 px-1">
+              <div className="h-4 w-2/3 rounded bg-gray-300 dark:bg-gray-600"></div>
+              <div className="h-3 w-full rounded bg-gray-200 dark:bg-gray-700"></div>
+              <div className="h-3 w-5/6 rounded bg-gray-200 dark:bg-gray-700"></div>
+              <div className="h-3 w-3/4 rounded bg-gray-200 dark:bg-gray-700"></div>
+            </div>
+          </div>
+        </div>
+      ))}
+    </>
+  );
+
+  const renderToolCards = () => (
+    <>
+      {Array.from({ length: count }).map((_, idx) => (
+        <div
+          key={`tool-skel-${idx}`}
+          className="bg-muted flex h-52 w-[300px] animate-pulse flex-col justify-between rounded-2xl p-6"
+        >
+          <div className="w-full">
+            <div className="flex items-center gap-2 px-1">
+              <div className="h-6 w-6 rounded bg-gray-300 dark:bg-gray-600"></div>
+            </div>
+            <div className="mt-[9px] space-y-2 px-1">
+              <div className="h-4 w-2/3 rounded bg-gray-300 dark:bg-gray-600"></div>
+              <div className="h-3 w-full rounded bg-gray-200 dark:bg-gray-700"></div>
+              <div className="h-3 w-5/6 rounded bg-gray-200 dark:bg-gray-700"></div>
+              <div className="h-3 w-3/4 rounded bg-gray-200 dark:bg-gray-700"></div>
+            </div>
+          </div>
+          <div className="flex justify-end">
+            <div className="h-5 w-9 rounded-full bg-gray-300 dark:bg-gray-600"></div>
+          </div>
+        </div>
+      ))}
+    </>
+  );
+
   const componentMap = {
     fileTable: renderTable,
     chatbot: renderChatbot,
@@ -246,6 +297,8 @@ const SkeletonLoader: React.FC<SkeletonLoaderProps> = ({
     analysis: renderAnalysis,
     chunkCards: renderChunkCards,
     sourceCards: renderSourceCards,
+    toolCards: renderToolCards,
+    addToolCards: renderAddToolCards,
   };
 
   const render = componentMap[component] || componentMap.default;
diff --git a/frontend/src/modals/AddToolModal.tsx b/frontend/src/modals/AddToolModal.tsx
index d9362e0f..6389b4d2 100644
--- a/frontend/src/modals/AddToolModal.tsx
+++ b/frontend/src/modals/AddToolModal.tsx
@@ -3,8 +3,8 @@ import { useTranslation } from 'react-i18next';
 import { useSelector } from 'react-redux';
 
 import userService from '../api/services/userService';
-import Spinner from '../components/Spinner';
-import { useOutsideAlerter } from '../hooks';
+import SkeletonLoader from '../components/SkeletonLoader';
+import { useLoaderState, useOutsideAlerter } from '../hooks';
 import { ActiveState } from '../models/misc';
 import { selectToken } from '../preferences/preferenceSlice';
 import ConfigToolModal from './ConfigToolModal';
@@ -37,7 +37,7 @@ export default function AddToolModal({
     React.useState<ActiveState>('INACTIVE');
   const [mcpModalState, setMcpModalState] =
     React.useState<ActiveState>('INACTIVE');
-  const [loading, setLoading] = React.useState(false);
+  const [loading, setLoading] = useLoaderState(false);
 
   useOutsideAlerter(modalRef, () => {
     if (modalState === 'ACTIVE') {
@@ -121,8 +121,8 @@ export default function AddToolModal({
               </h2>
               <div className="mt-5 h-[73vh] overflow-auto px-3 py-px">
                 {loading ? (
-                  <div className="flex h-full items-center justify-center">
-                    <Spinner />
+                  <div className="grid auto-rows-fr grid-cols-1 gap-4 pb-2 sm:grid-cols-2 lg:grid-cols-3">
+                    <SkeletonLoader component="addToolCards" count={6} />
                   </div>
                 ) : (
                   <div className="grid auto-rows-fr grid-cols-1 gap-4 pb-2 sm:grid-cols-2 lg:grid-cols-3">
diff --git a/frontend/src/settings/Tools.tsx b/frontend/src/settings/Tools.tsx
index 7c1d23db..196b049a 100644
--- a/frontend/src/settings/Tools.tsx
+++ b/frontend/src/settings/Tools.tsx
@@ -10,9 +10,9 @@ import NoFilesIcon from '../assets/no-files.svg';
 import SearchIcon from '../assets/search.svg';
 import ThreeDotsIcon from '../assets/three-dots.svg';
 import ContextMenu, { MenuOption } from '../components/ContextMenu';
-import Spinner from '../components/Spinner';
+import SkeletonLoader from '../components/SkeletonLoader';
 import ToggleSwitch from '../components/ToggleSwitch';
-import { useDarkTheme } from '../hooks';
+import { useDarkTheme, useLoaderState } from '../hooks';
 import AddToolModal from '../modals/AddToolModal';
 import ConfirmationModal from '../modals/ConfirmationModal';
 import MCPServerModal from '../modals/MCPServerModal';
@@ -33,7 +33,7 @@ export default function Tools() {
   const [selectedTool, setSelectedTool] = React.useState<
     UserToolType | APIToolType | null
   >(null);
-  const [loading, setLoading] = React.useState(false);
+  const [loading, setLoading] = useLoaderState(false);
   const [activeMenuId, setActiveMenuId] = React.useState<string | null>(null);
   const menuRefs = React.useRef<{
     [key: string]: React.RefObject<HTMLDivElement | null>;
@@ -242,10 +242,8 @@ export default function Tools() {
             </div>
             <div className="border-border dark:border-border mt-5 mb-8 border-b" />
             {loading ? (
-              <div className="grid grid-cols-2 gap-6 lg:grid-cols-3">
-                <div className="col-span-2 mt-24 flex h-32 items-center justify-center lg:col-span-3">
-                  <Spinner />
-                </div>
+              <div className="flex flex-wrap justify-center gap-4 sm:justify-start">
+                <SkeletonLoader component="toolCards" count={6} />
               </div>
             ) : (
               <div className="flex flex-wrap justify-center gap-4 sm:justify-start">