diff --git a/.claude/settings.local.json b/.claude/settings.local.json
index c8b6d3d..f734005 100644
--- a/.claude/settings.local.json
+++ b/.claude/settings.local.json
@@ -4,8 +4,9 @@
       "Bash(mkdir:*)",
       "Bash(yarn dev:*)",
       "Bash(yarn lint:*)",
-      "Bash(yarn build:*)"
+      "Bash(yarn build:*)",
+      "Bash(npx eslint:*)"
     ],
     "deny": []
   }
-}
+}
\ No newline at end of file
diff --git a/components/FormBuilderComponents.vue b/components/FormBuilderComponents.vue
index 37f9b0f..f3a7cb2 100644
--- a/components/FormBuilderComponents.vue
+++ b/components/FormBuilderComponents.vue
@@ -1,30 +1,112 @@
 <template>
   <div class="form-components">
-    <!-- Search Bar -->
+    <!-- Enhanced Search Bar -->
     <div class="search-container p-3 mb-2">
       <div class="relative">
         <input
           type="text"
           v-model="searchQuery"
-          placeholder="Search..."
-          class="w-full px-3 py-2 pl-9 bg-white border border-gray-300 rounded text-gray-700 text-sm placeholder-gray-400 focus:outline-none focus:ring-2 focus:ring-blue-500 focus:border-blue-500"
+          placeholder="Search components..."
+          class="w-full px-3 py-2 pl-9 pr-10 bg-white border border-gray-300 rounded text-gray-700 text-sm placeholder-gray-400 focus:outline-none focus:ring-2 focus:ring-blue-500 focus:border-blue-500"
+          @focus="showSearchOptions = true"
         />
         <Icon
           name="material-symbols:search"
           class="absolute left-3 top-1/2 transform -translate-y-1/2 w-4 h-4 text-gray-400"
         />
+        <button
+          @click="toggleFilterDropdown"
+          class="absolute right-3 top-1/2 transform -translate-y-1/2 p-1 hover:bg-gray-100 rounded transition-colors"
+          :class="{ 'text-blue-500': hasActiveFilters }"
+        >
+          <Icon name="material-symbols:filter-list" class="w-4 h-4" />
+        </button>
+      </div>
+      
+      <!-- Filter Dropdown -->
+      <div 
+        v-if="showFilterDropdown" 
+        class="absolute z-50 mt-2 w-full bg-white border border-gray-200 rounded-lg shadow-lg"
+      >
+        <div class="p-3">
+          <h4 class="text-sm font-medium text-gray-700 mb-2">Filter by Category</h4>
+          <div class="space-y-2 max-h-48 overflow-y-auto">
+            <label 
+              v-for="category in availableCategories" 
+              :key="category"
+              class="flex items-center space-x-2 cursor-pointer hover:bg-gray-50 p-1 rounded"
+            >
+              <input 
+                type="checkbox" 
+                :value="category" 
+                v-model="selectedCategories"
+                class="w-4 h-4 text-blue-600 border-gray-300 rounded focus:ring-blue-500"
+              />
+              <span class="text-sm text-gray-600">{{ category }}</span>
+              <span class="text-xs text-gray-400 ml-auto">
+                ({{ getComponentsByCategory(category).length }})
+              </span>
+            </label>
+          </div>
+          <div class="flex justify-between mt-3 pt-2 border-t border-gray-100">
+            <button 
+              @click="clearFilters" 
+              class="text-xs text-gray-500 hover:text-gray-700"
+            >
+              Clear all
+            </button>
+            <button 
+              @click="showFilterDropdown = false" 
+              class="text-xs text-blue-600 hover:text-blue-700"
+            >
+              Done
+            </button>
+          </div>
+        </div>
       </div>
     </div>
 
-    <!-- Text Inputs Category -->
-    <div class="component-category mb-4">
-      <h3 class="text-gray-700 text-xs font-semibold px-3 mb-2 uppercase tracking-wider">Text Inputs</h3>
+    <!-- Category Filter Chips -->
+    <div v-if="selectedCategories.length > 0" class="px-3 mb-3">
+      <div class="flex flex-wrap gap-1">
+        <span 
+          v-for="category in selectedCategories" 
+          :key="category"
+          class="inline-flex items-center px-2 py-1 bg-blue-100 text-blue-800 text-xs rounded-full"
+        >
+          {{ category }}
+          <button 
+            @click="removeCategory(category)"
+            class="ml-1 hover:bg-blue-200 rounded-full p-0.5"
+          >
+            <Icon name="material-symbols:close" class="w-3 h-3" />
+          </button>
+        </span>
+        <button 
+          @click="clearFilters"
+          class="text-xs text-gray-500 hover:text-gray-700 ml-1"
+        >
+          Clear all
+        </button>
+      </div>
+    </div>
+
+    <!-- Recently Used Section -->
+    <div v-if="recentlyUsed.length > 0 && !searchQuery && selectedCategories.length === 0" class="mb-4">
+      <div class="flex items-center justify-between px-3 mb-2">
+        <h3 class="text-gray-700 text-xs font-semibold uppercase tracking-wider">Recently Used</h3>
+        <button 
+          @click="clearRecentlyUsed"
+          class="text-xs text-gray-400 hover:text-gray-600"
+        >
+          Clear
+        </button>
+      </div>
       <div class="grid grid-cols-2 gap-1 px-2">
         <div
-          v-for="component in getComponentsByCategory('Basic Inputs')"
-          :key="component.type"
-          class="component-item rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-colors border border-gray-200"
-          :class="{ 'hidden': !matchesSearch(component) }"
+          v-for="component in recentlyUsed.slice(0, 4)"
+          :key="'recent-' + component.type"
+          class="component-item recent-item rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-colors border border-gray-200 relative"
           draggable="true"
           @dragstart="onDragStart($event, component)"
           @dragend="onDragEnd($event)"
@@ -32,106 +114,292 @@
         >
           <Icon :name="component.icon" class="mb-1 w-5 h-5 text-gray-600" />
           <span class="text-xs text-gray-600 text-center">{{ component.name }}</span>
+          <div class="absolute top-0 right-0 w-2 h-2 bg-blue-500 rounded-full transform translate-x-1 -translate-y-1"></div>
+        </div>
+      </div>
+    </div>
+
+    <!-- No Results State -->
+    <div v-if="isSearching && filteredComponentsCount === 0" class="p-6 text-center text-gray-500">
+      <Icon name="material-symbols:search-off" class="w-12 h-12 mx-auto mb-3 text-gray-300" />
+      <h3 class="text-sm font-medium text-gray-600 mb-1">No components found</h3>
+      <p class="text-xs text-gray-400 mb-3">Try adjusting your search or filter criteria</p>
+      <button 
+        @click="clearSearch"
+        class="text-xs text-blue-600 hover:text-blue-700 font-medium"
+      >
+        Clear search
+      </button>
+    </div>
+
+    <!-- Text Inputs Category -->
+    <div class="component-category mb-4" v-if="shouldShowCategory('Basic Inputs')">
+      <div 
+        @click="toggleCategory('Basic Inputs')"
+        class="flex items-center justify-between px-3 py-2 cursor-pointer hover:bg-gray-50 rounded transition-colors"
+      >
+        <h3 class="text-gray-700 text-xs font-semibold uppercase tracking-wider">Text Inputs</h3>
+        <div class="flex items-center space-x-2">
+          <span class="text-xs text-gray-400">
+            ({{ getVisibleComponentsInCategory('Basic Inputs').length }})
+          </span>
+          <Icon 
+            :name="collapsedCategories['Basic Inputs'] ? 'material-symbols:expand-more' : 'material-symbols:expand-less'"
+            class="w-4 h-4 text-gray-400 transition-transform"
+          />
+        </div>
+      </div>
+      <div 
+        v-if="!collapsedCategories['Basic Inputs']"
+        class="grid grid-cols-2 gap-1 px-2 transition-all duration-200"
+      >
+        <div
+          v-for="component in getComponentsByCategory('Basic Inputs')"
+          :key="component.type"
+          class="component-item enhanced-card rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-all duration-200 border border-gray-200"
+          :class="{ 'hidden': !matchesSearch(component), 'highlight-match': highlightComponent(component) }"
+          draggable="true"
+          @dragstart="onDragStart($event, component)"
+          @dragend="onDragEnd($event)"
+          @click="addComponent(component)"
+          @mouseenter="showTooltip($event, component)"
+          @mouseleave="hideTooltip"
+        >
+          <Icon :name="component.icon" class="mb-1 w-5 h-5 text-gray-600" />
+          <span 
+            class="text-xs text-gray-600 text-center leading-tight component-name"
+            v-html="getHighlightedName(component)"
+          ></span>
         </div>
       </div>
     </div>
 
     <!-- Selection & Toggle Category -->
-    <div class="component-category mb-4">
-      <h3 class="text-gray-700 text-xs font-semibold px-3 mb-2 uppercase tracking-wider">Selection & Toggle</h3>
-      <div class="grid grid-cols-2 gap-1 px-2">
+    <div class="component-category mb-4" v-if="shouldShowCategory('Selection Inputs')">
+      <div 
+        @click="toggleCategory('Selection Inputs')"
+        class="flex items-center justify-between px-3 py-2 cursor-pointer hover:bg-gray-50 rounded transition-colors"
+      >
+        <h3 class="text-gray-700 text-xs font-semibold uppercase tracking-wider">Selection & Toggle</h3>
+        <div class="flex items-center space-x-2">
+          <span class="text-xs text-gray-400">
+            ({{ getVisibleComponentsInCategory('Selection Inputs').length }})
+          </span>
+          <Icon 
+            :name="collapsedCategories['Selection Inputs'] ? 'material-symbols:expand-more' : 'material-symbols:expand-less'"
+            class="w-4 h-4 text-gray-400 transition-transform"
+          />
+        </div>
+      </div>
+      <div 
+        v-if="!collapsedCategories['Selection Inputs']"
+        class="grid grid-cols-2 gap-1 px-2 transition-all duration-200"
+      >
         <div
           v-for="component in getComponentsByCategory('Selection Inputs')"
           :key="component.type"
-          class="component-item rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-colors border border-gray-200"
-          :class="{ 'hidden': !matchesSearch(component) }"
+          class="component-item enhanced-card rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-all duration-200 border border-gray-200"
+          :class="{ 'hidden': !matchesSearch(component), 'highlight-match': highlightComponent(component) }"
           draggable="true"
           @dragstart="onDragStart($event, component)"
           @dragend="onDragEnd($event)"
           @click="addComponent(component)"
+          @mouseenter="showTooltip($event, component)"
+          @mouseleave="hideTooltip"
         >
           <Icon :name="component.icon" class="mb-1 w-5 h-5 text-gray-600" />
-          <span class="text-xs text-gray-600 text-center">{{ component.name }}</span>
+          <span 
+            class="text-xs text-gray-600 text-center leading-tight component-name"
+            v-html="getHighlightedName(component)"
+          ></span>
         </div>
       </div>
     </div>
 
     <!-- Date & Pickers Category -->
-    <div class="component-category mb-4">
-      <h3 class="text-gray-700 text-xs font-semibold px-3 mb-2 uppercase tracking-wider">Date & Pickers</h3>
-      <div class="grid grid-cols-2 gap-1 px-2">
+    <div class="component-category mb-4" v-if="shouldShowCategory('Date and Time')">
+      <div 
+        @click="toggleCategory('Date and Time')"
+        class="flex items-center justify-between px-3 py-2 cursor-pointer hover:bg-gray-50 rounded transition-colors"
+      >
+        <h3 class="text-gray-700 text-xs font-semibold uppercase tracking-wider">Date & Pickers</h3>
+        <div class="flex items-center space-x-2">
+          <span class="text-xs text-gray-400">
+            ({{ getVisibleComponentsInCategory('Date and Time').length }})
+          </span>
+          <Icon 
+            :name="collapsedCategories['Date and Time'] ? 'material-symbols:expand-more' : 'material-symbols:expand-less'"
+            class="w-4 h-4 text-gray-400 transition-transform"
+          />
+        </div>
+      </div>
+      <div 
+        v-if="!collapsedCategories['Date and Time']"
+        class="grid grid-cols-2 gap-1 px-2 transition-all duration-200"
+      >
         <div
           v-for="component in getComponentsByCategory('Date and Time')"
           :key="component.type"
-          class="component-item rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-colors border border-gray-200"
-          :class="{ 'hidden': !matchesSearch(component) }"
+          class="component-item enhanced-card rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-all duration-200 border border-gray-200"
+          :class="{ 'hidden': !matchesSearch(component), 'highlight-match': highlightComponent(component) }"
           draggable="true"
           @dragstart="onDragStart($event, component)"
           @dragend="onDragEnd($event)"
           @click="addComponent(component)"
+          @mouseenter="showTooltip($event, component)"
+          @mouseleave="hideTooltip"
         >
           <Icon :name="component.icon" class="mb-1 w-5 h-5 text-gray-600" />
-          <span class="text-xs text-gray-600 text-center">{{ component.name }}</span>
+          <span 
+            class="text-xs text-gray-600 text-center leading-tight component-name"
+            v-html="getHighlightedName(component)"
+          ></span>
         </div>
       </div>
     </div>
 
     <!-- Advanced & Upload Category -->
-    <div class="component-category mb-4">
-      <h3 class="text-gray-700 text-xs font-semibold px-3 mb-2 uppercase tracking-wider">Advanced & Upload</h3>
-      <div class="grid grid-cols-2 gap-1 px-2">
+    <div class="component-category mb-4" v-if="shouldShowCategory('Advanced')">
+      <div 
+        @click="toggleCategory('Advanced')"
+        class="flex items-center justify-between px-3 py-2 cursor-pointer hover:bg-gray-50 rounded transition-colors"
+      >
+        <h3 class="text-gray-700 text-xs font-semibold uppercase tracking-wider">Advanced & Upload</h3>
+        <div class="flex items-center space-x-2">
+          <span class="text-xs text-gray-400">
+            ({{ getVisibleComponentsInCategory('Advanced').length }})
+          </span>
+          <Icon 
+            :name="collapsedCategories['Advanced'] ? 'material-symbols:expand-more' : 'material-symbols:expand-less'"
+            class="w-4 h-4 text-gray-400 transition-transform"
+          />
+        </div>
+      </div>
+      <div 
+        v-if="!collapsedCategories['Advanced']"
+        class="grid grid-cols-2 gap-1 px-2 transition-all duration-200"
+      >
         <div
           v-for="component in getComponentsByCategory('Advanced')"
           :key="component.type"
-          class="component-item rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-colors border border-gray-200"
-          :class="{ 'hidden': !matchesSearch(component) }"
+          class="component-item enhanced-card rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-all duration-200 border border-gray-200"
+          :class="{ 'hidden': !matchesSearch(component), 'highlight-match': highlightComponent(component) }"
           draggable="true"
           @dragstart="onDragStart($event, component)"
           @dragend="onDragEnd($event)"
           @click="addComponent(component)"
+          @mouseenter="showTooltip($event, component)"
+          @mouseleave="hideTooltip"
         >
           <Icon :name="component.icon" class="mb-1 w-5 h-5 text-gray-600" />
-          <span class="text-xs text-gray-600 text-center">{{ component.name }}</span>
+          <span 
+            class="text-xs text-gray-600 text-center leading-tight component-name"
+            v-html="getHighlightedName(component)"
+          ></span>
         </div>
       </div>
     </div>
 
     <!-- Layout & Content Category -->
-    <div class="component-category mb-4">
-      <h3 class="text-gray-700 text-xs font-semibold px-3 mb-2 uppercase tracking-wider">Layout & Content</h3>
-      <div class="grid grid-cols-2 gap-1 px-2">
+    <div class="component-category mb-4" v-if="shouldShowCategory('Layout')">
+      <div 
+        @click="toggleCategory('Layout')"
+        class="flex items-center justify-between px-3 py-2 cursor-pointer hover:bg-gray-50 rounded transition-colors"
+      >
+        <h3 class="text-gray-700 text-xs font-semibold uppercase tracking-wider">Layout & Content</h3>
+        <div class="flex items-center space-x-2">
+          <span class="text-xs text-gray-400">
+            ({{ getVisibleComponentsInCategory('Layout').length }})
+          </span>
+          <Icon 
+            :name="collapsedCategories['Layout'] ? 'material-symbols:expand-more' : 'material-symbols:expand-less'"
+            class="w-4 h-4 text-gray-400 transition-transform"
+          />
+        </div>
+      </div>
+      <div 
+        v-if="!collapsedCategories['Layout']"
+        class="grid grid-cols-2 gap-1 px-2 transition-all duration-200"
+      >
         <div
           v-for="component in getComponentsByCategory('Layout')"
           :key="component.type"
-          class="component-item rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-colors border border-gray-200"
-          :class="{ 'hidden': !matchesSearch(component) }"
+          class="component-item enhanced-card rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-all duration-200 border border-gray-200"
+          :class="{ 'hidden': !matchesSearch(component), 'highlight-match': highlightComponent(component) }"
           draggable="true"
           @dragstart="onDragStart($event, component)"
           @dragend="onDragEnd($event)"
           @click="addComponent(component)"
+          @mouseenter="showTooltip($event, component)"
+          @mouseleave="hideTooltip"
         >
           <Icon :name="component.icon" class="mb-1 w-5 h-5 text-gray-600" />
-          <span class="text-xs text-gray-600 text-center">{{ component.name }}</span>
+          <span 
+            class="text-xs text-gray-600 text-center leading-tight component-name"
+            v-html="getHighlightedName(component)"
+          ></span>
         </div>
       </div>
     </div>
 
     <!-- Custom HTML Category -->
-    <div class="component-category mb-4">
-      <h3 class="text-gray-700 text-xs font-semibold px-3 mb-2 uppercase tracking-wider">Custom HTML</h3>
-      <div class="grid grid-cols-2 gap-1 px-2">
+    <div class="component-category mb-4" v-if="shouldShowCategory('Custom HTML')">
+      <div 
+        @click="toggleCategory('Custom HTML')"
+        class="flex items-center justify-between px-3 py-2 cursor-pointer hover:bg-gray-50 rounded transition-colors"
+      >
+        <h3 class="text-gray-700 text-xs font-semibold uppercase tracking-wider">Custom HTML</h3>
+        <div class="flex items-center space-x-2">
+          <span class="text-xs text-gray-400">
+            ({{ getVisibleComponentsInCategory('Custom HTML').length }})
+          </span>
+          <Icon 
+            :name="collapsedCategories['Custom HTML'] ? 'material-symbols:expand-more' : 'material-symbols:expand-less'"
+            class="w-4 h-4 text-gray-400 transition-transform"
+          />
+        </div>
+      </div>
+      <div 
+        v-if="!collapsedCategories['Custom HTML']"
+        class="grid grid-cols-2 gap-1 px-2 transition-all duration-200"
+      >
         <div
           v-for="component in getComponentsByCategory('Custom HTML')"
           :key="component.type"
-          class="component-item rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-colors border border-gray-200"
-          :class="{ 'hidden': !matchesSearch(component) }"
+          class="component-item enhanced-card rounded p-2 flex flex-col items-center justify-center cursor-grab hover:bg-gray-100 transition-all duration-200 border border-gray-200"
+          :class="{ 'hidden': !matchesSearch(component), 'highlight-match': highlightComponent(component) }"
           draggable="true"
           @dragstart="onDragStart($event, component)"
           @dragend="onDragEnd($event)"
           @click="addComponent(component)"
+          @mouseenter="showTooltip($event, component)"
+          @mouseleave="hideTooltip"
         >
           <Icon :name="component.icon" class="mb-1 w-5 h-5 text-gray-600" />
-          <span class="text-xs text-gray-600 text-center">{{ component.name }}</span>
+          <span 
+            class="text-xs text-gray-600 text-center leading-tight component-name"
+            v-html="getHighlightedName(component)"
+          ></span>
+        </div>
+      </div>
+    </div>
+
+    <!-- Tooltip -->
+    <div 
+      v-if="showTooltipData.show"
+      ref="tooltip"
+      class="tooltip-popup"
+      :style="tooltipStyle"
+    >
+      <div class="tooltip-content">
+        <div class="flex items-center space-x-2 mb-2">
+          <Icon :name="showTooltipData.component?.icon" class="w-4 h-4 text-gray-600" />
+          <span class="font-medium text-sm text-gray-800">{{ showTooltipData.component?.name }}</span>
+        </div>
+        <p class="text-xs text-gray-600">{{ showTooltipData.component?.description }}</p>
+        <div class="flex items-center justify-between mt-2 pt-2 border-t border-gray-100">
+          <span class="text-xs text-gray-400">{{ showTooltipData.component?.category }}</span>
+          <span class="text-xs text-blue-600">Click to add</span>
         </div>
       </div>
     </div>
@@ -140,7 +408,31 @@
 
 <script setup>
 const emit = defineEmits(['add-component']);
+
+// Search and filtering state
 const searchQuery = ref('');
+const selectedCategories = ref([]);
+const showFilterDropdown = ref(false);
+const showSearchOptions = ref(false);
+const recentlyUsed = ref([]);
+
+// Close dropdown when clicking outside
+const closeDropdown = (event) => {
+  if (!event.target.closest('.search-container')) {
+    showFilterDropdown.value = false;
+    showSearchOptions.value = false;
+  }
+};
+
+onMounted(() => {
+  document.addEventListener('click', closeDropdown);
+  loadRecentlyUsed();
+  loadCategoryStates();
+});
+
+onUnmounted(() => {
+  document.removeEventListener('click', closeDropdown);
+});
 
 // Define available form components
 const availableComponents = [
@@ -1431,22 +1723,227 @@ fileInput.addEventListener('change', (e) => {
   }
 ];
 
+// Get all available categories
+const availableCategories = computed(() => {
+  return [...new Set(availableComponents.map(component => component.category))];
+});
+
 // Get components by category for rendering in sections
 const getComponentsByCategory = (category) => {
   return availableComponents.filter(component => component.category === category);
 };
 
-// Check if component matches search query
+// Get filtered components count for empty state
+const filteredComponentsCount = computed(() => {
+  let components = availableComponents;
+  
+  // Apply category filter
+  if (selectedCategories.value.length > 0) {
+    components = components.filter(component => 
+      selectedCategories.value.includes(component.category)
+    );
+  }
+  
+  // Apply search filter
+  if (searchQuery.value) {
+    components = components.filter(component => matchesSearch(component));
+  }
+  
+  return components.length;
+});
+
+// Check if we are in search mode
+const isSearching = computed(() => {
+  return searchQuery.value.length > 0 || selectedCategories.value.length > 0;
+});
+
+// Check if there are active filters
+const hasActiveFilters = computed(() => {
+  return selectedCategories.value.length > 0;
+});
+
+// Enhanced search matching with highlighting support
 const matchesSearch = (component) => {
-  if (!searchQuery.value) return true;
+  // Always show if no search query
+  if (!searchQuery.value) {
+    // But apply category filter if active
+    if (selectedCategories.value.length > 0) {
+      return selectedCategories.value.includes(component.category);
+    }
+    return true;
+  }
   
   const query = searchQuery.value.toLowerCase();
-  return (
+  const matchesText = (
     component.name.toLowerCase().includes(query) ||
     component.description.toLowerCase().includes(query) ||
     component.type.toLowerCase().includes(query) ||
     component.category.toLowerCase().includes(query)
   );
+  
+  // Apply both search and category filter
+  if (selectedCategories.value.length > 0) {
+    return matchesText && selectedCategories.value.includes(component.category);
+  }
+  
+  return matchesText;
+};
+
+// Filter functions
+const toggleFilterDropdown = () => {
+  showFilterDropdown.value = !showFilterDropdown.value;
+  showSearchOptions.value = false;
+};
+
+const removeCategory = (category) => {
+  selectedCategories.value = selectedCategories.value.filter(c => c !== category);
+};
+
+const clearFilters = () => {
+  selectedCategories.value = [];
+  showFilterDropdown.value = false;
+};
+
+const clearSearch = () => {
+  searchQuery.value = '';
+  selectedCategories.value = [];
+};
+
+// Recently used functions
+const addToRecentlyUsed = (component) => {
+  // Remove if already exists
+  recentlyUsed.value = recentlyUsed.value.filter(c => c.type !== component.type);
+  // Add to beginning
+  recentlyUsed.value.unshift(component);
+  // Keep only last 8
+  recentlyUsed.value = recentlyUsed.value.slice(0, 8);
+  // Save to localStorage
+  saveRecentlyUsed();
+};
+
+const loadRecentlyUsed = () => {
+  try {
+    const saved = localStorage.getItem('formBuilder_recentComponents');
+    if (saved) {
+      const parsed = JSON.parse(saved);
+      // Validate that components still exist
+      recentlyUsed.value = parsed.filter(component => 
+        availableComponents.some(c => c.type === component.type)
+      );
+    }
+  } catch (error) {
+    console.warn('Failed to load recently used components:', error);
+    recentlyUsed.value = [];
+  }
+};
+
+const saveRecentlyUsed = () => {
+  try {
+    localStorage.setItem('formBuilder_recentComponents', JSON.stringify(recentlyUsed.value));
+  } catch (error) {
+    console.warn('Failed to save recently used components:', error);
+  }
+};
+
+const clearRecentlyUsed = () => {
+  recentlyUsed.value = [];
+  localStorage.removeItem('formBuilder_recentComponents');
+};
+
+// Category collapse/expand functionality
+const collapsedCategories = ref({});
+
+const toggleCategory = (category) => {
+  collapsedCategories.value[category] = !collapsedCategories.value[category];
+  // Save state to localStorage
+  localStorage.setItem('formBuilder_collapsedCategories', JSON.stringify(collapsedCategories.value));
+};
+
+const loadCategoryStates = () => {
+  try {
+    const saved = localStorage.getItem('formBuilder_collapsedCategories');
+    if (saved) {
+      collapsedCategories.value = JSON.parse(saved);
+    }
+  } catch (error) {
+    console.warn('Failed to load category states:', error);
+  }
+};
+
+// Category visibility functions
+const shouldShowCategory = (category) => {
+  const componentsInCategory = getComponentsByCategory(category);
+  const visibleComponents = componentsInCategory.filter(component => matchesSearch(component));
+  return visibleComponents.length > 0;
+};
+
+const getVisibleComponentsInCategory = (category) => {
+  const componentsInCategory = getComponentsByCategory(category);
+  return componentsInCategory.filter(component => matchesSearch(component));
+};
+
+// Component highlighting
+const highlightComponent = (component) => {
+  if (!searchQuery.value) return false;
+  const query = searchQuery.value.toLowerCase();
+  return component.name.toLowerCase().includes(query);
+};
+
+// Tooltip functionality
+const showTooltipData = ref({ show: false, component: null });
+const tooltip = ref(null);
+const tooltipStyle = ref({});
+
+const showTooltip = (event, component) => {
+  showTooltipData.value = { show: true, component };
+  
+  nextTick(() => {
+    const rect = event.target.getBoundingClientRect();
+    const tooltipEl = tooltip.value;
+    
+    if (tooltipEl) {
+      const tooltipRect = tooltipEl.getBoundingClientRect();
+      
+      // Position tooltip to the right of the component
+      let left = rect.right + 8;
+      let top = rect.top + (rect.height / 2) - (tooltipRect.height / 2);
+      
+      // Adjust if tooltip would go off screen
+      if (left + tooltipRect.width > window.innerWidth) {
+        left = rect.left - tooltipRect.width - 8;
+      }
+      
+      if (top < 0) {
+        top = 8;
+      } else if (top + tooltipRect.height > window.innerHeight) {
+        top = window.innerHeight - tooltipRect.height - 8;
+      }
+      
+      tooltipStyle.value = {
+        position: 'fixed',
+        left: `${left}px`,
+        top: `${top}px`,
+        zIndex: 1000
+      };
+    }
+  });
+};
+
+const hideTooltip = () => {
+  showTooltipData.value = { show: false, component: null };
+};
+
+// Search highlighting functionality
+const highlightSearchTerm = (text, searchTerm) => {
+  if (!searchTerm || !text) return text;
+  
+  const regex = new RegExp(`(${searchTerm.replace(/[.*+?^${}()|[\]\\]/g, '\\$&')})`, 'gi');
+  return text.replace(regex, '<mark class="search-highlight">$1</mark>');
+};
+
+const getHighlightedName = (component) => {
+  if (!searchQuery.value) return component.name;
+  return highlightSearchTerm(component.name, searchQuery.value);
 };
 
 // Handle drag start event
@@ -1511,6 +2008,7 @@ const onDragStart = (event, component) => {
 
 // Add a component directly via click
 const addComponent = (component) => {
+  addToRecentlyUsed(component);
   emit('add-component', component);
 };
 
@@ -1527,9 +2025,7 @@ const onDragEnd = (event) => {
 
 <style scoped>
 .form-components {
-  @apply bg-white h-full;
-  
-  /* More compact layout */
+  @apply bg-white h-full relative;
   font-size: 0.75rem;
 }
 
@@ -1538,13 +2034,33 @@ const onDragEnd = (event) => {
 }
 
 .component-category h3 {
-  @apply text-xs font-semibold px-3 mb-2 uppercase tracking-wider text-gray-700;
+  @apply text-xs font-semibold uppercase tracking-wider text-gray-700;
 }
 
+/* Enhanced component items */
 .component-item {
   @apply h-20;
   transition: all 0.15s ease-in-out;
   min-height: 4.5rem;
+  position: relative;
+}
+
+.component-item.enhanced-card {
+  @apply shadow-sm;
+}
+
+.component-item.enhanced-card:hover {
+  @apply shadow-md border-gray-300;
+  transform: translateY(-2px);
+}
+
+.component-item.highlight-match {
+  @apply ring-2 ring-yellow-200 bg-yellow-50 border-yellow-300;
+}
+
+.component-item.recent-item::after {
+  content: '';
+  @apply absolute top-0 right-0 w-2 h-2 bg-blue-500 rounded-full transform translate-x-1 -translate-y-1;
 }
 
 .component-item .iconify {
@@ -1555,10 +2071,6 @@ const onDragEnd = (event) => {
   @apply leading-tight;
 }
 
-.component-item:hover {
-  transform: translateY(-2px);
-}
-
 .component-item:active {
   transform: scale(0.97);
 }
@@ -1570,8 +2082,120 @@ const onDragEnd = (event) => {
   box-shadow: 0 0 0 2px rgba(37, 99, 235, 0.3);
 }
 
+/* Tooltip styles */
+.tooltip-popup {
+  @apply bg-white border border-gray-200 rounded-lg shadow-lg;
+  max-width: 250px;
+  z-index: 1000;
+}
+
+.tooltip-content {
+  @apply p-3;
+}
+
+/* Filter dropdown styles */
+.search-container {
+  position: relative;
+}
+
+/* Category header hover effects */
+.component-category > div:first-child:hover {
+  @apply bg-gray-50;
+}
+
+/* Smooth transitions for category expansion */
+.component-category .grid {
+  transition: all 0.2s ease-in-out;
+}
+
+/* Search highlight styles */
+.highlight-text {
+  @apply bg-yellow-200;
+}
+
+.search-highlight,
+:deep(.search-highlight) {
+  @apply bg-yellow-200 px-1 py-0.5 rounded text-gray-800 font-medium;
+  background-color: #fef3c7;
+  color: #92400e;
+}
+
+.component-name {
+  word-break: break-word;
+}
+
+.component-name :deep(mark) {
+  @apply bg-yellow-200 px-1 py-0.5 rounded text-gray-800 font-medium;
+  background-color: #fef3c7;
+  color: #92400e;
+}
+
+/* Enhanced search input */
+.search-container input:focus {
+  @apply ring-2 ring-blue-500 border-blue-500;
+}
+
+/* Filter chip styles */
+.filter-chip {
+  @apply inline-flex items-center px-2 py-1 bg-blue-100 text-blue-800 text-xs rounded-full;
+}
+
+.filter-chip button {
+  @apply ml-1 hover:bg-blue-200 rounded-full p-0.5 transition-colors;
+}
+
+/* Recently used indicator */
+.recent-indicator {
+  @apply absolute top-0 right-0 w-2 h-2 bg-blue-500 rounded-full transform translate-x-1 -translate-y-1;
+}
+
+/* Empty state styles */
+.empty-state {
+  @apply text-center text-gray-500 py-8;
+}
+
+.empty-state h3 {
+  @apply text-sm font-medium text-gray-600 mb-1;
+}
+
+.empty-state p {
+  @apply text-xs text-gray-400 mb-3;
+}
+
 .drag-preview {
   pointer-events: none;
   z-index: 9999;
 }
+
+/* Responsive adjustments */
+@media (max-width: 640px) {
+  .component-item {
+    @apply h-16;
+    min-height: 4rem;
+  }
+  
+  .component-item .iconify {
+    @apply w-4 h-4;
+  }
+  
+  .component-item span {
+    @apply text-xs;
+  }
+}
+
+/* Animation for category expand/collapse */
+@keyframes slideDown {
+  from {
+    opacity: 0;
+    transform: translateY(-10px);
+  }
+  to {
+    opacity: 1;
+    transform: translateY(0);
+  }
+}
+
+.component-category .grid {
+  animation: slideDown 0.2s ease-out;
+}
 </style> 
\ No newline at end of file