diff --git a/src/components/modules/issue/ui/TemplateSelector.tsx b/src/components/modules/issue/ui/TemplateSelector.tsx
index 5d01b9e..9b0eeea 100644
--- a/src/components/modules/issue/ui/TemplateSelector.tsx
+++ b/src/components/modules/issue/ui/TemplateSelector.tsx
@@ -1,5 +1,6 @@
 'use client';
 
+import { useEffect, useMemo, useRef, useState } from 'react';
 import type { CredentialTemplate } from '@/@types/templates';
 
 export default function TemplateSelector({
@@ -15,67 +16,164 @@ export default function TemplateSelector({
   onCreateCustom?: () => void;
   onDeleteCustom?: (id: string) => void;
 }) {
+  const [open, setOpen] = useState(false);
+  const wrapperRef = useRef<HTMLDivElement | null>(null);
+
   const isCustom = (id: string) => id.startsWith('custom-');
   const selectedIsCustom = selectedId ? isCustom(selectedId) : false;
+  const selectedTemplate = useMemo(
+    () => templates.find((template) => template.id === selectedId) ?? null,
+    [templates, selectedId]
+  );
+  const builtInTemplates = useMemo(
+    () => templates.filter((template) => !isCustom(template.id)),
+    [templates]
+  );
+  const customTemplates = useMemo(
+    () => templates.filter((template) => isCustom(template.id)),
+    [templates]
+  );
+
+  useEffect(() => {
+    const onPointerDownOutside = (event: MouseEvent) => {
+      if (!wrapperRef.current?.contains(event.target as Node)) {
+        setOpen(false);
+      }
+    };
+
+    const onEscape = (event: KeyboardEvent) => {
+      if (event.key === 'Escape') {
+        setOpen(false);
+      }
+    };
+
+    document.addEventListener('mousedown', onPointerDownOutside);
+    document.addEventListener('keydown', onEscape);
+
+    return () => {
+      document.removeEventListener('mousedown', onPointerDownOutside);
+      document.removeEventListener('keydown', onEscape);
+    };
+  }, []);
 
   return (
     <div className="space-y-3">
-      <label className="block mt-4 text-sm font-medium text-white">Select Template</label>
+      <label className="mt-4 block text-sm font-medium text-white">Select Template</label>
 
       <div className="flex gap-3">
-        <select
-          value={selectedId || ''}
-          onChange={(e) => {
-            const tpl = templates.find((t) => t.id === e.target.value);
-            if (tpl) onSelect(tpl);
-          }}
-          className="flex-1 rounded-xl border border-zinc-800 bg-zinc-950/50 text-white px-4 py-3 focus:outline-none focus:ring-2 focus:ring-blue-600 focus:border-transparent transition-all"
-        >
-          <option value="" disabled>
-            Choose a template...
-          </option>
+        <div ref={wrapperRef} className="relative flex-1">
+          <button
+            type="button"
+            onClick={() => setOpen((previous) => !previous)}
+            aria-haspopup="listbox"
+            aria-expanded={open}
+            className="flex w-full items-center justify-between rounded-xl border border-zinc-800 bg-zinc-950/50 px-4 py-3 text-left text-white transition-all hover:border-zinc-700 focus:outline-none focus:ring-2 focus:ring-white/20"
+          >
+            <span className={selectedTemplate ? 'text-white' : 'text-zinc-500'}>
+              {selectedTemplate ? selectedTemplate.title : 'Choose a template...'}
+            </span>
+            <svg
+              className={`h-4 w-4 text-zinc-400 transition-transform ${open ? 'rotate-180' : ''}`}
+              viewBox="0 0 20 20"
+              fill="none"
+              aria-hidden="true"
+            >
+              <path
+                d="M5 7.5L10 12.5L15 7.5"
+                stroke="currentColor"
+                strokeWidth="1.75"
+                strokeLinecap="round"
+                strokeLinejoin="round"
+              />
+            </svg>
+          </button>
 
-          {templates.filter((t) => !isCustom(t.id)).length > 0 && (
-            <optgroup label="Built-in">
-              {templates
-                .filter((t) => !isCustom(t.id))
-                .map((tpl) => (
-                  <option key={tpl.id} value={tpl.id}>
-                    {tpl.title} – {tpl.description}
-                  </option>
-                ))}
-            </optgroup>
-          )}
+          {open && (
+            <div className="absolute z-30 mt-2 w-full overflow-hidden rounded-xl border border-zinc-800 bg-zinc-950/95 shadow-2xl backdrop-blur-sm">
+              <div className="max-h-72 overflow-y-auto py-2 pretty-scrollbar" role="listbox">
+                {builtInTemplates.length > 0 && (
+                  <>
+                    <p className="px-4 pb-1 pt-2 text-[11px] font-semibold uppercase tracking-wide text-zinc-500">
+                      Built-in
+                    </p>
+                    {builtInTemplates.map((template) => (
+                      <button
+                        key={template.id}
+                        type="button"
+                        role="option"
+                        aria-selected={selectedId === template.id}
+                        onClick={() => {
+                          onSelect(template);
+                          setOpen(false);
+                        }}
+                        className={`w-full px-4 py-2.5 text-left transition-colors hover:bg-zinc-800/70 ${
+                          selectedId === template.id ? 'bg-zinc-800/80' : ''
+                        }`}
+                      >
+                        <p className="text-sm font-medium text-white">{template.title}</p>
+                        <p className="mt-0.5 line-clamp-2 text-xs text-zinc-400">
+                          {template.description}
+                        </p>
+                      </button>
+                    ))}
+                  </>
+                )}
 
-          {templates.filter((t) => isCustom(t.id)).length > 0 && (
-            <optgroup label="Custom">
-              {templates
-                .filter((t) => isCustom(t.id))
-                .map((tpl) => (
-                  <option key={tpl.id} value={tpl.id}>
-                    {tpl.title} – {tpl.description}
-                  </option>
-                ))}
-            </optgroup>
+                {customTemplates.length > 0 && (
+                  <>
+                    <p className="px-4 pb-1 pt-3 text-[11px] font-semibold uppercase tracking-wide text-zinc-500">
+                      Custom
+                    </p>
+                    {customTemplates.map((template) => (
+                      <button
+                        key={template.id}
+                        type="button"
+                        role="option"
+                        aria-selected={selectedId === template.id}
+                        onClick={() => {
+                          onSelect(template);
+                          setOpen(false);
+                        }}
+                        className={`w-full px-4 py-2.5 text-left transition-colors hover:bg-zinc-800/70 ${
+                          selectedId === template.id ? 'bg-zinc-800/80' : ''
+                        }`}
+                      >
+                        <p className="text-sm font-medium text-white">{template.title}</p>
+                        <p className="mt-0.5 line-clamp-2 text-xs text-zinc-400">
+                          {template.description}
+                        </p>
+                      </button>
+                    ))}
+                  </>
+                )}
+              </div>
+            </div>
           )}
-        </select>
+        </div>
 
         {onCreateCustom && (
           <button
             type="button"
             onClick={onCreateCustom}
-            className="shrink-0 rounded-xl border border-zinc-700 bg-zinc-800 px-4 py-3 text-sm text-white hover:bg-zinc-700 transition-colors"
+            className="shrink-0 rounded-xl border border-zinc-700 bg-zinc-800 px-4 py-3 text-sm text-white transition-colors hover:bg-zinc-700"
           >
             + Custom
           </button>
         )}
       </div>
 
+      {templates.length === 0 && (
+        <p className="text-xs text-zinc-500">
+          No templates available yet. Create one with{' '}
+          {onCreateCustom ? <span className="text-zinc-300">+ Custom</span> : 'template builder'}.
+        </p>
+      )}
+
       {selectedIsCustom && onDeleteCustom && selectedId && (
         <button
           type="button"
           onClick={() => onDeleteCustom(selectedId)}
-          className="text-xs text-red-400 hover:text-red-300 transition-colors"
+          className="text-xs text-red-400 transition-colors hover:text-red-300"
         >
           Delete this custom template
         </button>