diff --git a/src/components/widget/layout/BaseModalLayout.vue b/src/components/widget/layout/BaseModalLayout.vue
index 2e4905aab..8ff9c0a7e 100644
--- a/src/components/widget/layout/BaseModalLayout.vue
+++ b/src/components/widget/layout/BaseModalLayout.vue
@@ -80,7 +80,9 @@
             >
               {{ contentTitle }}
             </h2>
-            <div class="min-h-0 px-6 pt-0 pb-10 overflow-y-auto">
+            <div
+              class="min-h-0 px-6 pt-0 pb-10 overflow-y-auto scrollbar-custom"
+            >
               <slot name="content"></slot>
             </div>
           </main>
diff --git a/src/components/widget/nav/NavItem.vue b/src/components/widget/nav/NavItem.vue
index 30ccbb3d9..c564dfcae 100644
--- a/src/components/widget/nav/NavItem.vue
+++ b/src/components/widget/nav/NavItem.vue
@@ -9,7 +9,7 @@
     role="button"
     @click="onClick"
   >
-    <div v-if="icon" class="py-0.5">
+    <div v-if="icon" class="pt-0.5">
       <NavIcon :icon="icon" />
     </div>
     <i v-else class="text-neutral icon-[lucide--folder] text-xs shrink-0" />
diff --git a/src/platform/assets/components/AssetBadgeGroup.vue b/src/platform/assets/components/AssetBadgeGroup.vue
index e78fe3a60..5c85713e4 100644
--- a/src/platform/assets/components/AssetBadgeGroup.vue
+++ b/src/platform/assets/components/AssetBadgeGroup.vue
@@ -5,7 +5,7 @@
       :key="badge.label"
       :class="
         cn(
-          'px-2 py-1 rounded text-xs font-bold uppercase tracking-wider text-modal-card-tag-foreground bg-modal-card-tag-background'
+          'px-2 py-1 rounded text-xs font-bold uppercase tracking-wider text-modal-card-tag-foreground bg-modal-card-tag-background break-all'
         )
       "
     >
diff --git a/src/platform/assets/components/AssetFilterBar.vue b/src/platform/assets/components/AssetFilterBar.vue
index 0ffcba32d..560e3138e 100644
--- a/src/platform/assets/components/AssetFilterBar.vue
+++ b/src/platform/assets/components/AssetFilterBar.vue
@@ -48,7 +48,7 @@
         @update:model-value="handleFilterChange"
       >
         <template #icon>
-          <i class="icon-[lucide--arrow-up-down] size-3" />
+          <i class="icon-[lucide--arrow-up-down]" />
         </template>
       </SingleSelect>
     </div>
diff --git a/src/platform/assets/composables/useAssetBrowser.test.ts b/src/platform/assets/composables/useAssetBrowser.test.ts
index 9c724f32b..1661e3dbb 100644
--- a/src/platform/assets/composables/useAssetBrowser.test.ts
+++ b/src/platform/assets/composables/useAssetBrowser.test.ts
@@ -98,6 +98,48 @@ describe('useAssetBrowser', () => {
 
       expect(result.description).toBe('loras model')
     })
+
+    it('removes category prefix from badge labels', () => {
+      const apiAsset = createApiAsset({
+        tags: ['models', 'checkpoint/stable-diffusion-v1-5']
+      })
+
+      const { filteredAssets } = useAssetBrowser(ref([apiAsset]))
+      const result = filteredAssets.value[0]
+
+      expect(result.badges).toContainEqual({
+        label: 'stable-diffusion-v1-5',
+        type: 'type'
+      })
+    })
+
+    it('handles tags without slash for badges', () => {
+      const apiAsset = createApiAsset({
+        tags: ['models', 'checkpoints']
+      })
+
+      const { filteredAssets } = useAssetBrowser(ref([apiAsset]))
+      const result = filteredAssets.value[0]
+
+      expect(result.badges).toContainEqual({
+        label: 'checkpoints',
+        type: 'type'
+      })
+    })
+
+    it('handles tags with multiple slashes in badges', () => {
+      const apiAsset = createApiAsset({
+        tags: ['models', 'checkpoint/subfolder/model-name']
+      })
+
+      const { filteredAssets } = useAssetBrowser(ref([apiAsset]))
+      const result = filteredAssets.value[0]
+
+      expect(result.badges).toContainEqual({
+        label: 'subfolder/model-name',
+        type: 'type'
+      })
+    })
   })
 
   describe('Tag-Based Filtering', () => {
@@ -533,5 +575,58 @@ describe('useAssetBrowser', () => {
       selectedCategory.value = 'unknown'
       expect(contentTitle.value).toBe('Assets')
     })
+
+    it('groups models by top-level folder name', () => {
+      const assets = [
+        createApiAsset({
+          id: 'asset-1',
+          tags: ['models', 'Chatterbox/subfolder1/model1']
+        }),
+        createApiAsset({
+          id: 'asset-2',
+          tags: ['models', 'Chatterbox/subfolder2/model2']
+        }),
+        createApiAsset({
+          id: 'asset-3',
+          tags: ['models', 'Chatterbox/subfolder3/model3']
+        }),
+        createApiAsset({
+          id: 'asset-4',
+          tags: ['models', 'OtherFolder/subfolder1/model4']
+        })
+      ]
+
+      const { availableCategories, selectedCategory, categoryFilteredAssets } =
+        useAssetBrowser(ref(assets))
+
+      // Should group all Chatterbox subfolders under single category
+      expect(availableCategories.value).toEqual([
+        { id: 'all', label: 'All Models', icon: 'icon-[lucide--folder]' },
+        {
+          id: 'Chatterbox',
+          label: 'Chatterbox',
+          icon: 'icon-[lucide--package]'
+        },
+        {
+          id: 'OtherFolder',
+          label: 'OtherFolder',
+          icon: 'icon-[lucide--package]'
+        }
+      ])
+
+      // When selecting Chatterbox category, should include all models from its subfolders
+      selectedCategory.value = 'Chatterbox'
+      expect(categoryFilteredAssets.value).toHaveLength(3)
+      expect(categoryFilteredAssets.value.map((a) => a.id)).toEqual([
+        'asset-1',
+        'asset-2',
+        'asset-3'
+      ])
+
+      // When selecting OtherFolder category, should include only its models
+      selectedCategory.value = 'OtherFolder'
+      expect(categoryFilteredAssets.value).toHaveLength(1)
+      expect(categoryFilteredAssets.value[0].id).toBe('asset-4')
+    })
   })
 })
diff --git a/src/platform/assets/composables/useAssetBrowser.ts b/src/platform/assets/composables/useAssetBrowser.ts
index 799834614..2817be81c 100644
--- a/src/platform/assets/composables/useAssetBrowser.ts
+++ b/src/platform/assets/composables/useAssetBrowser.ts
@@ -15,7 +15,18 @@ export type OwnershipOption = 'all' | 'my-models' | 'public-models'
 
 function filterByCategory(category: string) {
   return (asset: AssetItem) => {
-    return category === 'all' || asset.tags.includes(category)
+    if (category === 'all') return true
+
+    // Check if any tag matches the category (for exact matches)
+    if (asset.tags.includes(category)) return true
+
+    // Check if any tag's top-level folder matches the category
+    return asset.tags.some((tag) => {
+      if (typeof tag === 'string' && tag.includes('/')) {
+        return tag.split('/')[0] === category
+      }
+      return false
+    })
   }
 }
 
@@ -93,7 +104,12 @@ export function useAssetBrowser(
 
     // Type badge from non-root tag
     if (typeTag) {
-      badges.push({ label: typeTag, type: 'type' })
+      // Remove category prefix from badge label (e.g. "checkpoint/model" → "model")
+      const badgeLabel = typeTag.includes('/')
+        ? typeTag.substring(typeTag.indexOf('/') + 1)
+        : typeTag
+
+      badges.push({ label: badgeLabel, type: 'type' })
     }
 
     // Base model badge from metadata
@@ -125,6 +141,7 @@ export function useAssetBrowser(
       .filter((asset) => asset.tags[0] === 'models')
       .map((asset) => asset.tags[1])
       .filter((tag): tag is string => typeof tag === 'string' && tag.length > 0)
+      .map((tag) => tag.split('/')[0]) // Extract top-level folder name
 
     const uniqueCategories = Array.from(new Set(categories))
       .sort()