diff --git a/packages/builder/src/components/common/NavItem.svelte b/packages/builder/src/components/common/NavItem.svelte
index 6590463408..3b608e4860 100644
--- a/packages/builder/src/components/common/NavItem.svelte
+++ b/packages/builder/src/components/common/NavItem.svelte
@@ -21,6 +21,7 @@
   export let id
   export let showTooltip = false
   export let selectedBy = null
+  export let compact = false
 
   const scrollApi = getContext("scroll")
   const dispatch = createEventDispatcher()
@@ -80,8 +81,9 @@
     {#if withArrow}
       <div
         class:opened
-        class:relative={indentLevel === 0}
-        class:absolute={indentLevel > 0}
+        class:relative={indentLevel === 0 && !compact}
+        class:absolute={indentLevel > 0 && !compact}
+        class:compact
         class="icon arrow"
         on:click={onIconClick}
       >
@@ -194,6 +196,13 @@
     padding: 8px;
     margin-left: -8px;
   }
+
+  .compact {
+    position: absolute;
+    left: 4px;
+    padding: 8px;
+    margin-left: -8px;
+  }
   .icon.arrow :global(svg) {
     width: 12px;
     height: 12px;
diff --git a/packages/builder/src/pages/builder/app/[application]/design/[screenId]/components/[componentId]/_components/LeftPanel/Components/ComponentTree.svelte b/packages/builder/src/pages/builder/app/[application]/design/[screenId]/components/[componentId]/_components/LeftPanel/Components/ComponentTree.svelte
index 18319e4b33..636d69192a 100644
--- a/packages/builder/src/pages/builder/app/[application]/design/[screenId]/components/[componentId]/_components/LeftPanel/Components/ComponentTree.svelte
+++ b/packages/builder/src/pages/builder/app/[application]/design/[screenId]/components/[componentId]/_components/LeftPanel/Components/ComponentTree.svelte
@@ -107,6 +107,7 @@
       id={`component-${component._id}`}
     >
       <NavItem
+          compact
         scrollable
         draggable
         on:dragend={dndStore.actions.reset}
@@ -117,7 +118,7 @@
         text={getComponentText(component)}
         icon={getComponentIcon(component)}
         withArrow={componentHasChildren(component)}
-        indentLevel={level + 1}
+        indentLevel={level}
         selected={$store.selectedComponentId === component._id}
         {opened}
         highlighted={isChildOfSelectedComponent(component)}