diff --git a/ui/desktop/src/components/settings_v2/providers/modal/subcomponents/ProviderSetupOverlay.tsx b/ui/desktop/src/components/Modal.tsx
similarity index 53%
rename from ui/desktop/src/components/settings_v2/providers/modal/subcomponents/ProviderSetupOverlay.tsx
rename to ui/desktop/src/components/Modal.tsx
index a2c74f5f..2f9cfb51 100644
--- a/ui/desktop/src/components/settings_v2/providers/modal/subcomponents/ProviderSetupOverlay.tsx
+++ b/ui/desktop/src/components/Modal.tsx
@@ -1,18 +1,18 @@
 import React from 'react';
-import { Card } from '../../../../ui/card';
+import { Card } from './ui/card';
 
-interface ProviderSetupOverlayProps {
+interface ModalProps {
   children: React.ReactNode;
 }
 
 /**
- * Renders the semi-transparent backdrop + blur for the modal.
+ * A reusable modal component that renders content with a semi-transparent backdrop and blur effect.
  */
-export default function ProviderSetupOverlay({ children }: ProviderSetupOverlayProps) {
+export default function Modal({ children }: ModalProps) {
   return (
     <div className="fixed inset-0 bg-black/20 dark:bg-white/20 backdrop-blur-sm transition-colors animate-[fadein_200ms_ease-in_forwards]">
-      <Card className="fixed top-1/2 left-1/2 -translate-x-1/2 -translate-y-1/2 w-[500px] bg-bgApp rounded-xl overflow-hidden shadow-none p-[16px] pt-[24px] pb-0">
-        <div className="px-4 pb-0 space-y-6">{children}</div>
+      <Card className="fixed top-1/2 left-1/2 -translate-x-1/2 -translate-y-1/2 w-[500px] bg-bgApp rounded-xl overflow-hidden shadow-none p-6">
+        <div className="space-y-6">{children}</div>
       </Card>
     </div>
   );
diff --git a/ui/desktop/src/components/settings_v2/ExtensionsSection.tsx b/ui/desktop/src/components/settings_v2/ExtensionsSection.tsx
index 7aaa74aa..4c777ec6 100644
--- a/ui/desktop/src/components/settings_v2/ExtensionsSection.tsx
+++ b/ui/desktop/src/components/settings_v2/ExtensionsSection.tsx
@@ -1,10 +1,14 @@
 import React, { useEffect, useState } from 'react';
 import { Button } from '../ui/button';
 import { Switch } from '../ui/switch';
-import { Plus } from 'lucide-react';
+import { Plus, X } from 'lucide-react';
 import { Gear } from '../icons/Gear';
 import { GPSIcon } from '../ui/icons';
 import { useConfig } from '../ConfigContext';
+import Modal from '../Modal';
+import { Input } from '../ui/input';
+import Select from 'react-select';
+import { createDarkSelectStyles, darkSelectTheme } from '../ui/select-styles';
 
 interface ExtensionConfig {
   args?: string[];
@@ -12,7 +16,7 @@ interface ExtensionConfig {
   enabled: boolean;
   envs?: Record<string, string>;
   name: string;
-  type: 'stdio' | 'builtin';
+  type: 'stdio' | 'sse';
 }
 
 interface ExtensionItem {
@@ -24,6 +28,11 @@ interface ExtensionItem {
   config: ExtensionConfig;
 }
 
+interface EnvVar {
+  key: string;
+  value: string;
+}
+
 // Helper function to get a friendly title from extension name
 const getFriendlyTitle = (name: string): string => {
   return name
@@ -41,8 +50,28 @@ const getSubtitle = (config: ExtensionConfig): string => {
 };
 
 export default function ExtensionsSection() {
-  const { config, updateExtension } = useConfig();
+  const { config, updateExtension, addExtension } = useConfig();
   const [extensions, setExtensions] = useState<ExtensionItem[]>([]);
+  const [selectedExtension, setSelectedExtension] = useState<ExtensionItem | null>(null);
+  const [isModalOpen, setIsModalOpen] = useState(false);
+  const [isAddModalOpen, setIsAddModalOpen] = useState(false);
+  const [formData, setFormData] = useState<{
+    name: string;
+    type: 'stdio' | 'sse';
+    cmd?: string;
+    args?: string[];
+    endpoint?: string;
+    enabled: boolean;
+    envVars: EnvVar[];
+  }>({
+    name: '',
+    type: 'stdio',
+    cmd: '',
+    args: [],
+    endpoint: '',
+    enabled: true,
+    envVars: [],
+  });
 
   useEffect(() => {
     if (config.extensions) {
@@ -63,6 +92,28 @@ export default function ExtensionsSection() {
     }
   }, [config.extensions]);
 
+  useEffect(() => {
+    if (selectedExtension) {
+      const envVars = selectedExtension.config.envs
+        ? Object.entries(selectedExtension.config.envs).map(([key, value]) => ({
+            key,
+            value: value as string,
+          }))
+        : [];
+
+      setFormData({
+        name: selectedExtension.config.name,
+        type: selectedExtension.config.type as 'stdio' | 'sse',
+        cmd: selectedExtension.config.type === 'stdio' ? selectedExtension.config.cmd : undefined,
+        args: selectedExtension.config.args || [],
+        endpoint:
+          selectedExtension.config.type === 'sse' ? selectedExtension.config.cmd : undefined,
+        enabled: selectedExtension.config.enabled,
+        envVars,
+      });
+    }
+  }, [selectedExtension]);
+
   const handleExtensionToggle = async (id: string) => {
     const extension = extensions.find((ext) => ext.id === id);
     if (extension) {
@@ -75,11 +126,125 @@ export default function ExtensionsSection() {
         await updateExtension(id, updatedConfig);
       } catch (error) {
         console.error('Failed to update extension:', error);
-        // Here you might want to add a toast notification for error feedback
       }
     }
   };
 
+  const handleConfigureClick = (extension: ExtensionItem) => {
+    setSelectedExtension(extension);
+    setIsModalOpen(true);
+  };
+
+  const handleAddExtension = async () => {
+    const envs = formData.envVars.reduce(
+      (acc, { key, value }) => {
+        if (key) {
+          acc[key] = value;
+        }
+        return acc;
+      },
+      {} as Record<string, string>
+    );
+
+    const extensionConfig = {
+      name: formData.name,
+      type: formData.type,
+      enabled: formData.enabled,
+      envs,
+      ...(formData.type === 'stdio'
+        ? {
+            cmd: formData.cmd,
+            args: formData.args,
+          }
+        : {
+            cmd: formData.endpoint,
+          }),
+    };
+
+    try {
+      await addExtension(formData.name, extensionConfig);
+      handleModalClose();
+    } catch (error) {
+      console.error('Failed to add extension:', error);
+    }
+  };
+
+  const handleModalClose = () => {
+    setIsModalOpen(false);
+    setIsAddModalOpen(false);
+    setSelectedExtension(null);
+    setFormData({
+      name: '',
+      type: 'stdio',
+      cmd: '',
+      args: [],
+      endpoint: '',
+      enabled: true,
+      envVars: [],
+    });
+  };
+
+  const handleAddEnvVar = () => {
+    setFormData({
+      ...formData,
+      envVars: [...formData.envVars, { key: '', value: '' }],
+    });
+  };
+
+  const handleRemoveEnvVar = (index: number) => {
+    const newEnvVars = [...formData.envVars];
+    newEnvVars.splice(index, 1);
+    setFormData({
+      ...formData,
+      envVars: newEnvVars,
+    });
+  };
+
+  const handleEnvVarChange = (index: number, field: 'key' | 'value', value: string) => {
+    const newEnvVars = [...formData.envVars];
+    newEnvVars[index][field] = value;
+    setFormData({
+      ...formData,
+      envVars: newEnvVars,
+    });
+  };
+
+  const handleSaveConfig = async () => {
+    if (!selectedExtension) return;
+
+    const envs = formData.envVars.reduce(
+      (acc, { key, value }) => {
+        if (key) {
+          acc[key] = value;
+        }
+        return acc;
+      },
+      {} as Record<string, string>
+    );
+
+    const updatedConfig = {
+      name: formData.name,
+      type: formData.type,
+      enabled: formData.enabled,
+      envs,
+      ...(formData.type === 'stdio'
+        ? {
+            cmd: formData.cmd,
+            args: formData.args,
+          }
+        : {
+            cmd: formData.endpoint,
+          }),
+    };
+
+    try {
+      await updateExtension(selectedExtension.id, updatedConfig);
+      handleModalClose();
+    } catch (error) {
+      console.error('Failed to update extension configuration:', error);
+    }
+  };
+
   return (
     <section id="extensions">
       <div className="flex justify-between items-center mb-6 px-8">
@@ -100,7 +265,10 @@ export default function ExtensionsSection() {
                 </div>
                 <div className="flex items-center gap-4">
                   {extension.canConfigure && (
-                    <button className="text-textSubtle hover:text-textStandard">
+                    <button
+                      className="text-textSubtle hover:text-textStandard"
+                      onClick={() => handleConfigureClick(extension)}
+                    >
                       <Gear className="h-5 w-5" />
                     </button>
                   )}
@@ -116,7 +284,21 @@ export default function ExtensionsSection() {
           ))}
         </div>
         <div className="flex gap-4 pt-4 w-full">
-          <Button className="flex items-center gap-2 flex-1 justify-center bg-[#393838] hover:bg-subtle">
+          <Button
+            className="flex items-center gap-2 flex-1 justify-center bg-[#393838] hover:bg-subtle"
+            onClick={() => {
+              setFormData({
+                name: '',
+                type: 'stdio',
+                cmd: '',
+                args: [],
+                endpoint: '',
+                enabled: true,
+                envVars: [],
+              });
+              setIsAddModalOpen(true);
+            }}
+          >
             <Plus className="h-4 w-4" />
             Manually Add
           </Button>
@@ -129,6 +311,276 @@ export default function ExtensionsSection() {
           </Button>
         </div>
       </div>
+
+      {isModalOpen && selectedExtension && (
+        <Modal>
+          <div className="space-y-6">
+            <h2 className="text-xl font-medium">Update Extension</h2>
+
+            <div className="flex justify-between gap-4">
+              <div className="flex-1">
+                <label className="text-sm font-medium mb-2 block">Extension Name</label>
+                <Input
+                  value={formData.name}
+                  onChange={(e) => setFormData({ ...formData, name: e.target.value })}
+                  placeholder="Enter extension name..."
+                />
+              </div>
+              <div className="w-[200px]">
+                <label className="text-sm font-medium mb-2 block">Type</label>
+                <Select
+                  value={{ value: formData.type, label: formData.type.toUpperCase() }}
+                  onChange={(option) =>
+                    setFormData({
+                      ...formData,
+                      type: (option?.value as 'stdio' | 'sse') || 'stdio',
+                    })
+                  }
+                  options={[
+                    { value: 'stdio', label: 'STDIO' },
+                    { value: 'sse', label: 'SSE' },
+                  ]}
+                  styles={createDarkSelectStyles('200px')}
+                  theme={darkSelectTheme}
+                  isSearchable={false}
+                />
+              </div>
+            </div>
+
+            <div>
+              {formData.type === 'stdio' ? (
+                <div className="space-y-4">
+                  <div>
+                    <label className="text-sm font-medium mb-2 block">Command</label>
+                    <Input
+                      value={formData.cmd || ''}
+                      onChange={(e) =>
+                        setFormData({ ...formData, cmd: e.target.value, endpoint: undefined })
+                      }
+                      placeholder="Enter command..."
+                      className="w-full"
+                    />
+                  </div>
+                  <div>
+                    <label className="text-sm font-medium mb-2 block">Arguments</label>
+                    <Input
+                      value={formData.args?.join(' ') || ''}
+                      onChange={(e) =>
+                        setFormData({
+                          ...formData,
+                          args: e.target.value.split(' ').filter((arg) => arg.length > 0),
+                        })
+                      }
+                      placeholder="Enter arguments..."
+                      className="w-full"
+                    />
+                  </div>
+                </div>
+              ) : (
+                <div>
+                  <label className="text-sm font-medium mb-2 block">Endpoint</label>
+                  <Input
+                    value={formData.endpoint || ''}
+                    onChange={(e) =>
+                      setFormData({
+                        ...formData,
+                        endpoint: e.target.value,
+                        cmd: undefined,
+                        args: [],
+                      })
+                    }
+                    placeholder="Enter endpoint URL..."
+                    className="w-full"
+                  />
+                </div>
+              )}
+            </div>
+
+            <div>
+              <div className="flex justify-between items-center mb-2">
+                <label className="text-sm font-medium">Environment Variables</label>
+                <Button
+                  onClick={handleAddEnvVar}
+                  variant="ghost"
+                  className="text-sm hover:bg-subtle"
+                >
+                  Add Variable
+                </Button>
+              </div>
+
+              <div className="space-y-2">
+                {formData.envVars.map((envVar, index) => (
+                  <div key={index} className="flex gap-2 items-start">
+                    <Input
+                      value={envVar.key}
+                      onChange={(e) => handleEnvVarChange(index, 'key', e.target.value)}
+                      placeholder="Key"
+                      className="flex-1"
+                    />
+                    <Input
+                      value={envVar.value}
+                      onChange={(e) => handleEnvVarChange(index, 'value', e.target.value)}
+                      placeholder="Value"
+                      className="flex-1"
+                    />
+                    <Button
+                      onClick={() => handleRemoveEnvVar(index)}
+                      variant="ghost"
+                      className="p-2 h-auto hover:bg-subtle"
+                    >
+                      <X className="h-4 w-4" />
+                    </Button>
+                  </div>
+                ))}
+              </div>
+            </div>
+
+            <div className="flex justify-end gap-3 pt-4">
+              <Button onClick={handleModalClose} variant="ghost" className="hover:bg-subtle">
+                Cancel
+              </Button>
+              <Button onClick={handleSaveConfig} className="bg-[#393838] hover:bg-subtle">
+                Save Changes
+              </Button>
+            </div>
+          </div>
+        </Modal>
+      )}
+
+      {isAddModalOpen && (
+        <Modal>
+          <div className="space-y-6">
+            <h2 className="text-xl font-medium">Add New Extension</h2>
+
+            <div className="flex justify-between gap-4">
+              <div className="flex-1">
+                <label className="text-sm font-medium mb-2 block">Extension Name</label>
+                <Input
+                  value={formData.name}
+                  onChange={(e) => setFormData({ ...formData, name: e.target.value })}
+                  placeholder="Enter extension name..."
+                />
+              </div>
+              <div className="w-[200px]">
+                <label className="text-sm font-medium mb-2 block">Type</label>
+                <Select
+                  value={{ value: formData.type, label: formData.type.toUpperCase() }}
+                  onChange={(option) =>
+                    setFormData({
+                      ...formData,
+                      type: (option?.value as 'stdio' | 'sse') || 'stdio',
+                    })
+                  }
+                  options={[
+                    { value: 'stdio', label: 'STDIO' },
+                    { value: 'sse', label: 'SSE' },
+                  ]}
+                  styles={createDarkSelectStyles('200px')}
+                  theme={darkSelectTheme}
+                  isSearchable={false}
+                />
+              </div>
+            </div>
+
+            <div>
+              {formData.type === 'stdio' ? (
+                <div className="space-y-4">
+                  <div>
+                    <label className="text-sm font-medium mb-2 block">Command</label>
+                    <Input
+                      value={formData.cmd || ''}
+                      onChange={(e) =>
+                        setFormData({ ...formData, cmd: e.target.value, endpoint: undefined })
+                      }
+                      placeholder="Enter command..."
+                      className="w-full"
+                    />
+                  </div>
+                  <div>
+                    <label className="text-sm font-medium mb-2 block">Arguments</label>
+                    <Input
+                      value={formData.args?.join(' ') || ''}
+                      onChange={(e) =>
+                        setFormData({
+                          ...formData,
+                          args: e.target.value.split(' ').filter((arg) => arg.length > 0),
+                        })
+                      }
+                      placeholder="Enter arguments..."
+                      className="w-full"
+                    />
+                  </div>
+                </div>
+              ) : (
+                <div>
+                  <label className="text-sm font-medium mb-2 block">Endpoint</label>
+                  <Input
+                    value={formData.endpoint || ''}
+                    onChange={(e) =>
+                      setFormData({
+                        ...formData,
+                        endpoint: e.target.value,
+                        cmd: undefined,
+                        args: [],
+                      })
+                    }
+                    placeholder="Enter endpoint URL..."
+                    className="w-full"
+                  />
+                </div>
+              )}
+            </div>
+
+            <div>
+              <div className="flex justify-between items-center mb-2">
+                <label className="text-sm font-medium">Environment Variables</label>
+                <Button
+                  onClick={handleAddEnvVar}
+                  variant="ghost"
+                  className="text-sm hover:bg-subtle"
+                >
+                  Add Variable
+                </Button>
+              </div>
+
+              <div className="space-y-2">
+                {formData.envVars.map((envVar, index) => (
+                  <div key={index} className="flex gap-2 items-start">
+                    <Input
+                      value={envVar.key}
+                      onChange={(e) => handleEnvVarChange(index, 'key', e.target.value)}
+                      placeholder="Key"
+                      className="flex-1"
+                    />
+                    <Input
+                      value={envVar.value}
+                      onChange={(e) => handleEnvVarChange(index, 'value', e.target.value)}
+                      placeholder="Value"
+                      className="flex-1"
+                    />
+                    <Button
+                      onClick={() => handleRemoveEnvVar(index)}
+                      variant="ghost"
+                      className="p-2 h-auto hover:bg-subtle"
+                    >
+                      <X className="h-4 w-4" />
+                    </Button>
+                  </div>
+                ))}
+              </div>
+            </div>
+
+            <div className="flex justify-end gap-3 pt-4">
+              <Button onClick={handleModalClose} variant="ghost" className="hover:bg-subtle">
+                Cancel
+              </Button>
+              <Button onClick={handleAddExtension} className="bg-[#393838] hover:bg-subtle">
+                Add Extension
+              </Button>
+            </div>
+          </div>
+        </Modal>
+      )}
     </section>
   );
 }
diff --git a/ui/desktop/src/components/settings_v2/providers/modal/ProviderConfiguationModal.tsx b/ui/desktop/src/components/settings_v2/providers/modal/ProviderConfiguationModal.tsx
index 693a0cb1..18469fe9 100644
--- a/ui/desktop/src/components/settings_v2/providers/modal/ProviderConfiguationModal.tsx
+++ b/ui/desktop/src/components/settings_v2/providers/modal/ProviderConfiguationModal.tsx
@@ -1,10 +1,9 @@
 import React, { useEffect, useState } from 'react';
-import ProviderSetupOverlay from './subcomponents/ProviderSetupOverlay';
+import Modal from '../../../../components/Modal';
 import ProviderSetupHeader from './subcomponents/ProviderSetupHeader';
 import DefaultProviderSetupForm from './subcomponents/forms/DefaultProviderSetupForm';
 import ProviderSetupActions from './subcomponents/ProviderSetupActions';
 import ProviderLogo from './subcomponents/ProviderLogo';
-import ProviderConfiguationModalProps from './interfaces/ProviderConfigurationModalProps';
 import { useProviderModal } from './ProviderModalProvider';
 import { toast } from 'react-toastify';
 
@@ -61,7 +60,7 @@ export default function ProviderConfigurationModal() {
   };
 
   return (
-    <ProviderSetupOverlay>
+    <Modal>
       <div className="space-y-1">
         {/* Logo area - centered above title */}
         <ProviderLogo providerName={currentProvider.id} />
@@ -79,6 +78,6 @@ export default function ProviderConfigurationModal() {
       />
 
       <ProviderSetupActions onCancel={handleCancel} />
-    </ProviderSetupOverlay>
+    </Modal>
   );
 }