snapshot of https://github.com/makeplane/plane.git @ d868349a55de79979eb8b98701bf1702c67ad634 (2026-09-15)

apps/web/core/components/labels/create-update-label-inline.tsx

@@ -0,0 +1,259 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import React, { forwardRef, useEffect } from "react";
+import { observer } from "mobx-react";
+import { TwitterPicker } from "react-color";
+import type { SubmitHandler } from "react-hook-form";
+import { Controller, useForm } from "react-hook-form";
+import { Popover, Transition } from "@headlessui/react";
+// plane imports
+import { Field } from "@makeplane/propel/components/field";
+import { Input, InputGroup } from "@makeplane/propel/components/input";
+import { getRandomLabelColor, LABEL_COLOR_OPTIONS } from "@plane/constants";
+import { useTranslation } from "@plane/i18n";
+import { Button } from "@plane/propel/button";
+import { TOAST_TYPE, setToast } from "@plane/propel/toast";
+import type { IIssueLabel } from "@plane/types";
+
+// error codes
+const errorCodes = {
+  LABEL_NAME_ALREADY_EXISTS: "LABEL_NAME_ALREADY_EXISTS",
+};
+
+export type TLabelOperationsCallbacks = {
+  createLabel: (data: Partial<IIssueLabel>) => Promise<IIssueLabel>;
+  updateLabel: (labelId: string, data: Partial<IIssueLabel>) => Promise<IIssueLabel>;
+};
+
+type TCreateUpdateLabelInlineProps = {
+  labelForm: boolean;
+  setLabelForm: React.Dispatch<React.SetStateAction<boolean>>;
+  isUpdating: boolean;
+  labelOperationsCallbacks: TLabelOperationsCallbacks;
+  labelToUpdate?: IIssueLabel;
+  onClose?: () => void;
+};
+
+const defaultValues: Partial<IIssueLabel> = {
+  name: "",
+  color: "var(--text-color-secondary)",
+};
+
+export const CreateUpdateLabelInline = observer(
+  forwardRef(function CreateUpdateLabelInline(
+    props: TCreateUpdateLabelInlineProps,
+    ref: React.ForwardedRef<HTMLDivElement>
+  ) {
+    const { labelForm, setLabelForm, isUpdating, labelOperationsCallbacks, labelToUpdate, onClose } = props;
+    // form info
+    const {
+      handleSubmit,
+      control,
+      reset,
+      formState: { errors, isSubmitting },
+      watch,
+      setValue,
+      setFocus,
+    } = useForm<IIssueLabel>({
+      defaultValues,
+    });
+
+    const { t } = useTranslation();
+
+    const handleClose = () => {
+      setLabelForm(false);
+      reset(defaultValues);
+      if (onClose) onClose();
+    };
+
+    // eslint-disable-next-line @typescript-eslint/no-explicit-any
+    const getErrorMessage = (error: any, operation: "create" | "update"): string => {
+      const errorData = error ?? {};
+
+      const labelError = errorData.name?.includes(errorCodes.LABEL_NAME_ALREADY_EXISTS);
+      if (labelError) {
+        return t("label.create.already_exists");
+      }
+
+      // Fallback to general error messages
+      if (operation === "create") {
+        return errorData?.detail ?? errorData?.error ?? t("common.something_went_wrong");
+      }
+
+      return errorData?.error ?? t("project_settings.labels.toast.error");
+    };
+
+    const handleLabelCreate: SubmitHandler<IIssueLabel> = async (formData) => {
+      if (isSubmitting) return;
+
+      await labelOperationsCallbacks
+        .createLabel(formData)
+        .then((_res) => {
+          handleClose();
+          reset(defaultValues);
+        })
+        .catch((error) => {
+          const errorMessage = getErrorMessage(error, "create");
+          setToast({
+            title: "Error!",
+            type: TOAST_TYPE.ERROR,
+            message: errorMessage,
+          });
+          reset(formData);
+        });
+    };
+
+    const handleLabelUpdate: SubmitHandler<IIssueLabel> = async (formData) => {
+      if (!labelToUpdate?.id || isSubmitting) return;
+
+      await labelOperationsCallbacks
+        .updateLabel(labelToUpdate.id, formData)
+        .then((_res) => {
+          reset(defaultValues);
+          handleClose();
+        })
+        .catch((error) => {
+          const errorMessage = getErrorMessage(error, "update");
+          setToast({
+            title: "Oops!",
+            type: TOAST_TYPE.ERROR,
+            message: errorMessage,
+          });
+          reset(formData);
+        });
+    };
+
+    const handleFormSubmit = (formData: IIssueLabel) => {
+      if (isUpdating) {
+        handleLabelUpdate(formData);
+      } else {
+        handleLabelCreate(formData);
+      }
+    };
+
+    /**
+     * For settings focus on name input
+     */
+    useEffect(() => {
+      setFocus("name");
+    }, [setFocus, labelForm]);
+
+    useEffect(() => {
+      if (!labelToUpdate) return;
+
+      setValue("name", labelToUpdate.name);
+      setValue("color", labelToUpdate.color && labelToUpdate.color !== "" ? labelToUpdate.color : "#000");
+    }, [labelToUpdate, setValue]);
+
+    useEffect(() => {
+      if (labelToUpdate) {
+        setValue("color", labelToUpdate.color && labelToUpdate.color !== "" ? labelToUpdate.color : "#000");
+        return;
+      }
+
+      setValue("color", getRandomLabelColor());
+    }, [labelToUpdate, setValue]);
+
+    return (
+      <>
+        <div
+          ref={ref}
+          className={`flex w-full scroll-m-8 items-center gap-2 bg-surface-1 ${labelForm ? "" : "hidden"}`}
+        >
+          <div className="flex-shrink-0">
+            <Popover className="relative z-10 flex h-full w-full items-center justify-center">
+              {({ open }) => (
+                <>
+                  <Popover.Button
+                    className={`group inline-flex items-center text-14 font-medium focus:outline-none ${
+                      open ? "text-primary" : "text-secondary"
+                    }`}
+                  >
+                    <span
+                      className="h-4 w-4 rounded-full"
+                      style={{
+                        backgroundColor: watch("color"),
+                      }}
+                    />
+                  </Popover.Button>
+
+                  <Transition
+                    as={React.Fragment}
+                    enter="transition ease-out duration-200"
+                    enterFrom="opacity-0 translate-y-1"
+                    enterTo="opacity-100 translate-y-0"
+                    leave="transition ease-in duration-150"
+                    leaveFrom="opacity-100 translate-y-0"
+                    leaveTo="opacity-0 translate-y-1"
+                  >
+                    <Popover.Panel className="absolute top-full left-0 z-20 mt-3 w-screen max-w-xs px-2 sm:px-0">
+                      <Controller
+                        name="color"
+                        control={control}
+                        render={({ field: { value, onChange } }) => (
+                          <TwitterPicker
+                            colors={LABEL_COLOR_OPTIONS}
+                            color={value}
+                            onChange={(value) => onChange(value.hex)}
+                          />
+                        )}
+                      />
+                    </Popover.Panel>
+                  </Transition>
+                </>
+              )}
+            </Popover>
+          </div>
+          <div className="flex flex-1 flex-col justify-center">
+            <Controller
+              control={control}
+              name="name"
+              rules={{
+                required: t("project_settings.labels.label_title_is_required"),
+                maxLength: {
+                  value: 255,
+                  message: t("project_settings.labels.label_max_char"),
+                },
+              }}
+              render={({ field: { value, onChange, ref } }) => (
+                <Field name="name" invalid={Boolean(errors.name)}>
+                  <InputGroup size="2xl">
+                    <Input
+                      size="2xl"
+                      id="labelName"
+                      name="name"
+                      type="text"
+                      autoFocus
+                      value={value}
+                      onChange={onChange}
+                      ref={ref}
+                      placeholder={t("project_settings.labels.label_title")}
+                    />
+                  </InputGroup>
+                </Field>
+              )}
+            />
+          </div>
+          <Button variant="secondary" onClick={() => handleClose()}>
+            {t("cancel")}
+          </Button>
+          <Button
+            variant="primary"
+            onClick={(e) => {
+              e.preventDefault();
+              handleSubmit(handleFormSubmit)();
+            }}
+            loading={isSubmitting}
+          >
+            {isUpdating ? (isSubmitting ? t("updating") : t("update")) : isSubmitting ? t("adding") : t("add")}
+          </Button>
+        </div>
+        {errors.name?.message && <p className="p-0.5 pl-8 text-13 text-danger-primary">{errors.name?.message}</p>}
+      </>
+    );
+  })
+);

apps/web/core/components/labels/delete-label-modal.tsx

@@ -0,0 +1,73 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import { useState } from "react";
+import { observer } from "mobx-react";
+import { useParams } from "next/navigation";
+// types
+import { TOAST_TYPE, setToast } from "@plane/propel/toast";
+import type { IIssueLabel } from "@plane/types";
+// ui
+import { AlertModalCore } from "@plane/ui";
+// hooks
+import { useLabel } from "@/hooks/store/use-label";
+
+type Props = {
+  isOpen: boolean;
+  onClose: () => void;
+  data: IIssueLabel | null;
+};
+
+export const DeleteLabelModal = observer(function DeleteLabelModal(props: Props) {
+  const { isOpen, onClose, data } = props;
+  // router
+  const { workspaceSlug, projectId } = useParams();
+  // store hooks
+  const { deleteLabel } = useLabel();
+  // states
+  const [isDeleteLoading, setIsDeleteLoading] = useState(false);
+
+  const handleClose = () => {
+    onClose();
+    setIsDeleteLoading(false);
+  };
+
+  const handleDeletion = async () => {
+    if (!workspaceSlug || !projectId || !data) return;
+
+    setIsDeleteLoading(true);
+
+    await deleteLabel(workspaceSlug.toString(), projectId.toString(), data.id)
+      .then(() => {
+        handleClose();
+      })
+      .catch((err) => {
+        setIsDeleteLoading(false);
+        const error = err?.error || "Label could not be deleted. Please try again.";
+        setToast({
+          type: TOAST_TYPE.ERROR,
+          title: "Error!",
+          message: error,
+        });
+      });
+  };
+
+  return (
+    <AlertModalCore
+      handleClose={handleClose}
+      handleSubmit={handleDeletion}
+      isSubmitting={isDeleteLoading}
+      isOpen={isOpen}
+      title="Delete Label"
+      content={
+        <>
+          Are you sure you want to delete <span className="font-medium text-primary">{data?.name}</span>? This will
+          remove the label from all the work item and from any views where the label is being filtered upon.
+        </>
+      }
+    />
+  );
+});

apps/web/core/components/labels/index.ts

@@ -0,0 +1,11 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+export * from "./create-update-label-inline";
+export * from "./delete-label-modal";
+export * from "./project-setting-label-group";
+export * from "./project-setting-label-item";
+export * from "./project-setting-label-list";

apps/web/core/components/labels/label-block/label-item-block.tsx

@@ -0,0 +1,112 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import type { MutableRefObject } from "react";
+import { useRef, useState } from "react";
+import type { LucideIcon } from "lucide-react";
+// plane helpers
+import { useOutsideClickDetector } from "@plane/hooks";
+import type { ISvgIcons } from "@plane/propel/icons";
+import { CloseOutline } from "@makeplane/propel/icons";
+// types
+import type { IIssueLabel } from "@plane/types";
+// ui
+import { CustomMenu, DragHandle } from "@plane/ui";
+// helpers
+import { cn } from "@plane/utils";
+// components
+import { LabelName } from "./label-name";
+
+export interface ICustomMenuItem {
+  CustomIcon: LucideIcon | React.FC<ISvgIcons>;
+  onClick: (label: IIssueLabel) => void;
+  isVisible: boolean;
+  text: string;
+  key: string;
+}
+
+interface ILabelItemBlock {
+  label: IIssueLabel;
+  isDragging: boolean;
+  customMenuItems: ICustomMenuItem[];
+  handleLabelDelete: (label: IIssueLabel) => void;
+  isLabelGroup?: boolean;
+  dragHandleRef: MutableRefObject<HTMLButtonElement | null>;
+  disabled?: boolean;
+  draggable?: boolean;
+}
+
+export function LabelItemBlock(props: ILabelItemBlock) {
+  const {
+    label,
+    isDragging,
+    customMenuItems,
+    handleLabelDelete,
+    isLabelGroup,
+    dragHandleRef,
+    disabled = false,
+    draggable = true,
+  } = props;
+  // states
+  const [isMenuActive, setIsMenuActive] = useState(true);
+  // refs
+  const actionSectionRef = useRef<HTMLDivElement | null>(null);
+
+  useOutsideClickDetector(actionSectionRef, () => setIsMenuActive(false));
+
+  return (
+    <div className="group flex items-center">
+      <div className="flex items-center">
+        {!disabled && draggable && (
+          <DragHandle
+            className={cn("opacity-0 group-hover:opacity-100", {
+              "opacity-100": isDragging,
+            })}
+            ref={dragHandleRef}
+          />
+        )}
+        <LabelName color={label.color} name={label.name} isGroup={isLabelGroup ?? false} />
+      </div>
+
+      {!disabled && (
+        <div
+          ref={actionSectionRef}
+          className={`absolute right-2.5 flex items-center gap-2 px-4 ${
+            isMenuActive || isLabelGroup
+              ? "opacity-100"
+              : "opacity-0 group-hover:pointer-events-auto group-hover:opacity-100"
+          } ${isLabelGroup && "-top-0.5"}`}
+        >
+          <CustomMenu ellipsis menuButtonOnClick={() => setIsMenuActive(!isMenuActive)} useCaptureForOutsideClick>
+            {customMenuItems.map(
+              ({ isVisible, onClick, CustomIcon, text, key }) =>
+                isVisible && (
+                  <CustomMenu.MenuItem key={key} onClick={() => onClick(label)}>
+                    <span className="flex items-center justify-start gap-2">
+                      <CustomIcon className="size-4" />
+                      <span>{text}</span>
+                    </span>
+                  </CustomMenu.MenuItem>
+                )
+            )}
+          </CustomMenu>
+          {!isLabelGroup && (
+            <div className="py-0.5">
+              <button
+                className="flex size-5 items-center justify-center rounded-sm hover:bg-layer-1"
+                onClick={() => {
+                  handleLabelDelete(label);
+                }}
+              >
+                <CloseOutline className="size-3.5 flex-shrink-0 text-tertiary" />
+              </button>
+            </div>
+          )}
+        </div>
+      )}
+    </div>
+  );
+}

apps/web/core/components/labels/label-block/label-name.tsx

@@ -0,0 +1,33 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import { GroupOutline } from "@makeplane/propel/icons";
+
+interface ILabelName {
+  name: string;
+  color: string;
+  isGroup: boolean;
+}
+
+export function LabelName(props: ILabelName) {
+  const { name, color, isGroup } = props;
+
+  return (
+    <div className="flex items-center gap-3 pr-20">
+      {isGroup ? (
+        <GroupOutline className="h-3.5 w-3.5" color={color} />
+      ) : (
+        <span
+          className="h-3.5 w-3.5 flex-shrink-0 rounded-full"
+          style={{
+            backgroundColor: color && color !== "" ? color : "#000",
+          }}
+        />
+      )}
+      <h6 className="text-13">{name}</h6>
+    </div>
+  );
+}

apps/web/core/components/labels/label-drag-n-drop-HOC.tsx

@@ -0,0 +1,174 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import type { MutableRefObject } from "react";
+import { useEffect, useRef, useState } from "react";
+import { combine } from "@atlaskit/pragmatic-drag-and-drop/combine";
+import { draggable, dropTargetForElements } from "@atlaskit/pragmatic-drag-and-drop/element/adapter";
+import { pointerOutsideOfPreview } from "@atlaskit/pragmatic-drag-and-drop/element/pointer-outside-of-preview";
+import { setCustomNativeDragPreview } from "@atlaskit/pragmatic-drag-and-drop/element/set-custom-native-drag-preview";
+import { attachInstruction } from "@atlaskit/pragmatic-drag-and-drop-hitbox/tree-item";
+import { observer } from "mobx-react";
+import { createRoot } from "react-dom/client";
+// types
+import { EUserPermissions, EUserPermissionsLevel } from "@plane/constants";
+import type { IIssueLabel, InstructionType } from "@plane/types";
+// ui
+import { DropIndicator } from "@plane/ui";
+// components
+import { useUserPermissions } from "@/hooks/store/user";
+import { LabelName } from "./label-block/label-name";
+import type { TargetData } from "./label-utils";
+import { getCanDrop, getInstructionFromPayload } from "./label-utils";
+
+type LabelDragPreviewProps = {
+  label: IIssueLabel;
+  isGroup: boolean;
+};
+
+export function LabelDragPreview(props: LabelDragPreviewProps) {
+  const { label, isGroup } = props;
+
+  return (
+    <div className="border-[1px] border-subtle bg-surface-1 py-3 pr-4 pl-2">
+      <LabelName name={label.name} color={label.color} isGroup={isGroup} />
+    </div>
+  );
+}
+
+type Props = {
+  label: IIssueLabel;
+  isGroup: boolean;
+  isChild: boolean;
+  isLastChild: boolean;
+  children: (
+    isDragging: boolean,
+    isDroppingInLabel: boolean,
+    dragHandleRef: MutableRefObject<HTMLButtonElement | null>
+  ) => React.ReactNode;
+  onDrop: (
+    draggingLabelId: string,
+    droppedParentId: string | null,
+    droppedLabelId: string | undefined,
+    dropAtEndOfList: boolean
+  ) => void;
+};
+
+export const LabelDndHOC = observer(function LabelDndHOC(props: Props) {
+  const { label, isGroup, isChild, isLastChild, children, onDrop } = props;
+
+  const [isDragging, setIsDragging] = useState(false);
+  const [instruction, setInstruction] = useState<InstructionType | undefined>(undefined);
+  // refs
+  const labelRef = useRef<HTMLDivElement | null>(null);
+  const dragHandleRef = useRef<HTMLButtonElement | null>(null);
+
+  const { allowPermissions } = useUserPermissions();
+  const isEditable = allowPermissions([EUserPermissions.ADMIN], EUserPermissionsLevel.PROJECT);
+
+  useEffect(() => {
+    const element = labelRef.current;
+    const dragHandleElement = dragHandleRef.current;
+
+    if (!element || !isEditable) return;
+
+    return combine(
+      draggable({
+        element,
+        dragHandle: dragHandleElement ?? undefined,
+        getInitialData: () => ({ id: label?.id, parentId: label?.parent, isGroup, isChild }),
+        onDragStart: () => {
+          setIsDragging(true);
+        },
+        onDrop: () => {
+          setIsDragging(false);
+        },
+        onGenerateDragPreview: ({ nativeSetDragImage }) => {
+          setCustomNativeDragPreview({
+            getOffset: pointerOutsideOfPreview({ x: "0px", y: "0px" }),
+            render: ({ container }) => {
+              const root = createRoot(container);
+              root.render(<LabelDragPreview label={label} isGroup={isGroup} />);
+              return () => root.unmount();
+            },
+            nativeSetDragImage,
+          });
+        },
+      }),
+      dropTargetForElements({
+        element,
+        canDrop: ({ source }) => getCanDrop(source, label, isChild),
+        getData: ({ input, element }) => {
+          const data = { id: label?.id, parentId: label?.parent, isGroup, isChild };
+
+          const blockedStates: InstructionType[] = [];
+
+          // if is currently a child then block make-child instruction
+          if (isChild) blockedStates.push("make-child");
+          // if is currently is not a last child then block reorder-below instruction
+          if (!isLastChild) blockedStates.push("reorder-below");
+
+          return attachInstruction(data, {
+            input,
+            element,
+            currentLevel: isChild ? 1 : 0,
+            indentPerLevel: 0,
+            mode: isLastChild ? "last-in-group" : "standard",
+            block: blockedStates,
+          });
+        },
+        onDrag: ({ self, source, location }) => {
+          const instruction = getInstructionFromPayload(self, source, location);
+          setInstruction(instruction);
+        },
+        onDragLeave: () => {
+          setInstruction(undefined);
+        },
+        onDrop: ({ source, location }) => {
+          setInstruction(undefined);
+
+          const dropTargets = location?.current?.dropTargets ?? [];
+
+          if (isChild || !dropTargets || dropTargets.length <= 0) return;
+
+          // if the label is dropped on both a child and it's parent at the same time then get only the child's drop target
+          const dropTarget =
+            dropTargets.length > 1 ? dropTargets.find((target) => target?.data?.isChild) : dropTargets[0];
+
+          let parentId: string | null = null,
+            dropAtEndOfList = false;
+
+          const dropTargetData = dropTarget?.data as TargetData;
+
+          if (!dropTarget || !dropTargetData) return;
+
+          // get possible instructions for the dropTarget
+          const instruction = getInstructionFromPayload(dropTarget, source, location);
+
+          // if instruction is make child the set parentId as current dropTarget Id or else set it as dropTarget's parentId
+          parentId = instruction === "make-child" ? dropTargetData.id : dropTargetData.parentId;
+          // if instruction is any other than make-child, i.e., reorder-above and reorder-below then set the droppedId as dropTarget's id
+          const droppedLabelId = instruction !== "make-child" ? dropTargetData.id : undefined;
+          // if instruction is to reorder-below that is enabled only for end of the last items in the list then dropAtEndOfList as true
+          if (instruction === "reorder-below") dropAtEndOfList = true;
+
+          const sourceData = source.data as TargetData;
+          if (sourceData.id) onDrop(sourceData.id, parentId, droppedLabelId, dropAtEndOfList);
+        },
+      })
+    );
+  }, [labelRef?.current, dragHandleRef?.current, label, isChild, isGroup, isLastChild, onDrop]);
+
+  const isMakeChild = instruction == "make-child";
+
+  return (
+    <div ref={labelRef}>
+      <DropIndicator classNames="my-1" isVisible={instruction === "reorder-above"} />
+      {children(isDragging, isMakeChild, dragHandleRef)}
+      {isLastChild && <DropIndicator classNames="my-1" isVisible={instruction === "reorder-below"} />}
+    </div>
+  );
+});

apps/web/core/components/labels/label-utils.ts

@@ -0,0 +1,73 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import { extractInstruction } from "@atlaskit/pragmatic-drag-and-drop-hitbox/tree-item";
+import type { IIssueLabel, IPragmaticPayloadLocation, InstructionType, TDropTarget } from "@plane/types";
+
+export type TargetData = {
+  id: string;
+  parentId: string | null;
+  isGroup: boolean;
+  isChild: boolean;
+};
+
+/**
+ * extracts the Payload and translates the instruction for the current dropTarget based on drag and drop payload
+ * @param dropTarget dropTarget for which the instruction is required
+ * @param source the dragging label data that is being dragged on the dropTarget
+ * @param location location includes the data of all the dropTargets the source is being dragged on
+ * @returns Instruction for dropTarget
+ */
+export const getInstructionFromPayload = (
+  dropTarget: TDropTarget,
+  source: TDropTarget,
+  location: IPragmaticPayloadLocation
+): InstructionType | undefined => {
+  const dropTargetData = dropTarget?.data as TargetData;
+  const sourceData = source?.data as TargetData;
+
+  const allDropTargets = location?.current?.dropTargets;
+
+  // if all the dropTargets are greater than 1 meaning the source is being dragged on a group and its child at the same time
+  // and also if the dropTarget in question is also a group then, it should be a child of the current Droptarget
+  if (allDropTargets?.length > 1 && dropTargetData?.isGroup) return "make-child";
+
+  if (!dropTargetData || !sourceData) return undefined;
+
+  let instruction = extractInstruction(dropTargetData)?.type;
+
+  // If the instruction is blocked then set an instruction based on if dropTarget it is a child or not
+  if (instruction === "instruction-blocked") {
+    instruction = dropTargetData.isChild ? "reorder-above" : "make-child";
+  }
+
+  // if source that is being dragged is a group. A group cannon be a child of any other label,
+  // hence if current instruction is to be a child of dropTarget then reorder-above instead
+  if (instruction === "make-child" && sourceData.isGroup) instruction = "reorder-above";
+
+  return instruction;
+};
+
+/**
+ * This provides a boolean to indicate if the label can be dropped onto the droptarget
+ * @param source
+ * @param label
+ * @param isCurrentChild if the dropTarget is a child
+ * @returns
+ */
+export const getCanDrop = (source: TDropTarget, label: IIssueLabel | undefined, isCurrentChild: boolean) => {
+  const sourceData = source?.data;
+
+  if (!sourceData) return false;
+
+  // a label cannot be dropped on to itself and it's parent cannon be dropped on the child
+  if (sourceData.id === label?.id || sourceData.id === label?.parent) return false;
+
+  // if current dropTarget is a child and the label being dropped is a group then don't enable drop
+  if (isCurrentChild && sourceData.isGroup) return false;
+
+  return true;
+};

apps/web/core/components/labels/project-setting-label-group.tsx

@@ -0,0 +1,167 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import type { Dispatch, SetStateAction } from "react";
+import { useState } from "react";
+import { observer } from "mobx-react";
+import { Disclosure, Transition } from "@headlessui/react";
+// plane imports
+import { ChevronDownOutline, DeleteOutline, EditOutline } from "@makeplane/propel/icons";
+import type { IIssueLabel } from "@plane/types";
+// components
+import type { TLabelOperationsCallbacks } from "./create-update-label-inline";
+import { CreateUpdateLabelInline } from "./create-update-label-inline";
+import type { ICustomMenuItem } from "./label-block/label-item-block";
+import { LabelItemBlock } from "./label-block/label-item-block";
+import { LabelDndHOC } from "./label-drag-n-drop-HOC";
+import { ProjectSettingLabelItem } from "./project-setting-label-item";
+
+type Props = {
+  label: IIssueLabel;
+  labelChildren: IIssueLabel[];
+  handleLabelDelete: (label: IIssueLabel) => void;
+  isUpdating: boolean;
+  setIsUpdating: Dispatch<SetStateAction<boolean>>;
+  isLastChild: boolean;
+  onDrop: (
+    draggingLabelId: string,
+    droppedParentId: string | null,
+    droppedLabelId: string | undefined,
+    dropAtEndOfList: boolean
+  ) => void;
+  labelOperationsCallbacks: TLabelOperationsCallbacks;
+  isEditable?: boolean;
+};
+
+export const ProjectSettingLabelGroup = observer(function ProjectSettingLabelGroup(props: Props) {
+  const {
+    label,
+    labelChildren,
+    handleLabelDelete,
+    isUpdating,
+    setIsUpdating,
+    isLastChild,
+    onDrop,
+    isEditable = false,
+    labelOperationsCallbacks,
+  } = props;
+
+  // states
+  const [isEditLabelForm, setEditLabelForm] = useState(false);
+
+  const customMenuItems: ICustomMenuItem[] = [
+    {
+      CustomIcon: EditOutline,
+      onClick: () => {
+        setEditLabelForm(true);
+        setIsUpdating(true);
+      },
+      isVisible: true,
+      text: "Edit label",
+      key: "edit_label",
+    },
+    {
+      CustomIcon: DeleteOutline,
+      onClick: () => {
+        handleLabelDelete(label);
+      },
+      isVisible: true,
+      text: "Delete label",
+      key: "delete_label",
+    },
+  ];
+
+  return (
+    <LabelDndHOC label={label} isGroup isChild={false} isLastChild={isLastChild} onDrop={onDrop}>
+      {(isDragging, isDroppingInLabel, dragHandleRef) => (
+        <div
+          className={`rounded-sm ${isDroppingInLabel ? "border-[2px] border-accent-strong" : "border-[1.5px] border-transparent"}`}
+        >
+          <Disclosure
+            as="div"
+            className={`rounded-sm text-primary ${
+              !isDroppingInLabel ? "border-[0.5px] border-subtle" : ""
+            } ${isDragging ? "bg-layer-1" : "bg-surface-1"}`}
+            defaultOpen
+          >
+            {({ open }) => (
+              <>
+                <div className={`py-3 pr-3 pl-1 ${!isUpdating && "max-h-full overflow-y-hidden"}`}>
+                  <>
+                    <div className="relative flex cursor-pointer items-center justify-between gap-2">
+                      {isEditLabelForm ? (
+                        <CreateUpdateLabelInline
+                          labelForm={isEditLabelForm}
+                          setLabelForm={setEditLabelForm}
+                          isUpdating
+                          labelToUpdate={label}
+                          labelOperationsCallbacks={labelOperationsCallbacks}
+                          onClose={() => {
+                            setEditLabelForm(false);
+                            setIsUpdating(false);
+                          }}
+                        />
+                      ) : (
+                        <LabelItemBlock
+                          label={label}
+                          isDragging={isDragging}
+                          customMenuItems={customMenuItems}
+                          handleLabelDelete={handleLabelDelete}
+                          isLabelGroup
+                          dragHandleRef={dragHandleRef}
+                        />
+                      )}
+
+                      <Disclosure.Button>
+                        <span>
+                          <ChevronDownOutline
+                            className={`h-4 w-4 text-placeholder ${!open ? "rotate-90 transform" : ""}`}
+                          />
+                        </span>
+                      </Disclosure.Button>
+                    </div>
+                    <Transition
+                      as="div"
+                      show={open}
+                      enter="transition duration-100 ease-out"
+                      enterFrom="transform opacity-0"
+                      enterTo="transform opacity-100"
+                      leave="transition duration-75 ease-out"
+                      leaveFrom="transform opacity-100"
+                      leaveTo="transform opacity-0"
+                    >
+                      <Disclosure.Panel>
+                        <div className="ml-6">
+                          {labelChildren.map((child, index) => (
+                            <div key={child.id} className={`group flex w-full items-center text-13`}>
+                              <div className="w-full">
+                                <ProjectSettingLabelItem
+                                  label={child}
+                                  handleLabelDelete={() => handleLabelDelete(child)}
+                                  setIsUpdating={setIsUpdating}
+                                  isParentDragging={isDragging}
+                                  isChild
+                                  isLastChild={index === labelChildren.length - 1}
+                                  onDrop={onDrop}
+                                  isEditable={isEditable}
+                                  labelOperationsCallbacks={labelOperationsCallbacks}
+                                />
+                              </div>
+                            </div>
+                          ))}
+                        </div>
+                      </Disclosure.Panel>
+                    </Transition>
+                  </>
+                </div>
+              </>
+            )}
+          </Disclosure>
+        </div>
+      )}
+    </LabelDndHOC>
+  );
+});

apps/web/core/components/labels/project-setting-label-item.tsx

@@ -0,0 +1,124 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import type { Dispatch, SetStateAction } from "react";
+import { useState } from "react";
+import { useParams } from "next/navigation";
+import { CloseOutline, EditOutline } from "@makeplane/propel/icons";
+// types
+import type { IIssueLabel } from "@plane/types";
+// hooks
+import { useLabel } from "@/hooks/store/use-label";
+// components
+import type { TLabelOperationsCallbacks } from "./create-update-label-inline";
+import { CreateUpdateLabelInline } from "./create-update-label-inline";
+import type { ICustomMenuItem } from "./label-block/label-item-block";
+import { LabelItemBlock } from "./label-block/label-item-block";
+import { LabelDndHOC } from "./label-drag-n-drop-HOC";
+
+type Props = {
+  label: IIssueLabel;
+  handleLabelDelete: (label: IIssueLabel) => void;
+  setIsUpdating: Dispatch<SetStateAction<boolean>>;
+  isParentDragging?: boolean;
+  isChild: boolean;
+  isLastChild: boolean;
+  onDrop: (
+    draggingLabelId: string,
+    droppedParentId: string | null,
+    droppedLabelId: string | undefined,
+    dropAtEndOfList: boolean
+  ) => void;
+  labelOperationsCallbacks: TLabelOperationsCallbacks;
+  isEditable?: boolean;
+};
+
+export function ProjectSettingLabelItem(props: Props) {
+  const {
+    label,
+    setIsUpdating,
+    handleLabelDelete,
+    isChild,
+    isLastChild,
+    isParentDragging = false,
+    onDrop,
+    labelOperationsCallbacks,
+    isEditable = false,
+  } = props;
+  // states
+  const [isEditLabelForm, setEditLabelForm] = useState(false);
+  // router
+  const { workspaceSlug, projectId } = useParams();
+  // store hooks
+  const { updateLabel } = useLabel();
+
+  const removeFromGroup = (label: IIssueLabel) => {
+    if (!workspaceSlug || !projectId) return;
+
+    updateLabel(workspaceSlug.toString(), projectId.toString(), label.id, {
+      parent: null,
+    });
+  };
+
+  const customMenuItems: ICustomMenuItem[] = [
+    {
+      CustomIcon: CloseOutline,
+      onClick: removeFromGroup,
+      isVisible: !!label.parent,
+      text: "Remove from group",
+      key: "remove_from_group",
+    },
+    {
+      CustomIcon: EditOutline,
+      onClick: () => {
+        setEditLabelForm(true);
+        setIsUpdating(true);
+      },
+      isVisible: true,
+      text: "Edit label",
+      key: "edit_label",
+    },
+  ];
+
+  return (
+    <LabelDndHOC label={label} isGroup={false} isChild={isChild} isLastChild={isLastChild} onDrop={onDrop}>
+      {(isDragging, isDroppingInLabel, dragHandleRef) => (
+        <div
+          className={`rounded-sm ${isDroppingInLabel ? "border-[2px] border-accent-strong" : "border-[1.5px] border-transparent"}`}
+        >
+          <div
+            className={`group relative flex items-center justify-between gap-2 space-y-3 rounded-sm px-1 py-3 ${
+              isDroppingInLabel ? "" : "border-[0.5px] border-subtle"
+            } ${isDragging || isParentDragging ? "bg-layer-1" : "bg-surface-1"}`}
+          >
+            {isEditLabelForm ? (
+              <CreateUpdateLabelInline
+                labelForm={isEditLabelForm}
+                setLabelForm={setEditLabelForm}
+                isUpdating
+                labelToUpdate={label}
+                labelOperationsCallbacks={labelOperationsCallbacks}
+                onClose={() => {
+                  setEditLabelForm(false);
+                  setIsUpdating(false);
+                }}
+              />
+            ) : (
+              <LabelItemBlock
+                label={label}
+                isDragging={isDragging}
+                customMenuItems={customMenuItems}
+                handleLabelDelete={handleLabelDelete}
+                dragHandleRef={dragHandleRef}
+                disabled={!isEditable}
+              />
+            )}
+          </div>
+        </div>
+      )}
+    </LabelDndHOC>
+  );
+}

apps/web/core/components/labels/project-setting-label-list.tsx

@@ -0,0 +1,174 @@
+/**
+ * Copyright (c) 2023-present Plane Software, Inc. and contributors
+ * SPDX-License-Identifier: AGPL-3.0-only
+ * See the LICENSE file for details.
+ */
+
+import { useState, useRef } from "react";
+import { observer } from "mobx-react";
+import { useParams } from "next/navigation";
+// plane imports
+import { EUserPermissions, EUserPermissionsLevel } from "@plane/constants";
+import { useTranslation } from "@plane/i18n";
+import { Button } from "@plane/propel/button";
+import { EmptyStateCompact } from "@plane/propel/empty-state";
+import type { IIssueLabel } from "@plane/types";
+import { Loader } from "@plane/ui";
+import type { TLabelOperationsCallbacks } from "@/components/labels";
+import {
+  CreateUpdateLabelInline,
+  DeleteLabelModal,
+  ProjectSettingLabelGroup,
+  ProjectSettingLabelItem,
+} from "@/components/labels";
+// hooks
+import { useLabel } from "@/hooks/store/use-label";
+import { useUserPermissions } from "@/hooks/store/user";
+// local imports
+import { SettingsHeading } from "../settings/heading";
+
+export const ProjectSettingsLabelList = observer(function ProjectSettingsLabelList() {
+  // router
+  const { workspaceSlug, projectId } = useParams();
+  // refs
+  const scrollToRef = useRef<HTMLDivElement>(null);
+  // states
+  const [showLabelForm, setLabelForm] = useState(false);
+  const [isUpdating, setIsUpdating] = useState(false);
+  const [selectDeleteLabel, setSelectDeleteLabel] = useState<IIssueLabel | null>(null);
+  // plane hooks
+  const { t } = useTranslation();
+  // store hooks
+  const { projectLabels, updateLabelPosition, projectLabelsTree, createLabel, updateLabel } = useLabel();
+  const { allowPermissions } = useUserPermissions();
+  // derived values
+  const isEditable = allowPermissions([EUserPermissions.ADMIN], EUserPermissionsLevel.PROJECT);
+  const labelOperationsCallbacks: TLabelOperationsCallbacks = {
+    createLabel: (data: Partial<IIssueLabel>) => createLabel(workspaceSlug?.toString(), projectId?.toString(), data),
+    updateLabel: (labelId: string, data: Partial<IIssueLabel>) =>
+      updateLabel(workspaceSlug?.toString(), projectId?.toString(), labelId, data),
+  };
+
+  const newLabel = () => {
+    setIsUpdating(false);
+    setLabelForm(true);
+  };
+
+  const onDrop = (
+    draggingLabelId: string,
+    droppedParentId: string | null,
+    droppedLabelId: string | undefined,
+    dropAtEndOfList: boolean
+  ) => {
+    if (workspaceSlug && projectId) {
+      updateLabelPosition(
+        workspaceSlug?.toString(),
+        projectId?.toString(),
+        draggingLabelId,
+        droppedParentId,
+        droppedLabelId,
+        dropAtEndOfList
+      );
+      return;
+    }
+  };
+
+  return (
+    <>
+      <DeleteLabelModal
+        isOpen={!!selectDeleteLabel}
+        data={selectDeleteLabel ?? null}
+        onClose={() => setSelectDeleteLabel(null)}
+      />
+      <SettingsHeading
+        title={t("project_settings.labels.heading")}
+        description={t("project_settings.labels.description")}
+        control={
+          isEditable && (
+            <Button variant="primary" size="lg" onClick={newLabel}>
+              {t("common.add_label")}
+            </Button>
+          )
+        }
+      />
+      <div className="mt-6 w-full">
+        {showLabelForm && (
+          <div className="my-2 w-full rounded-sm border border-subtle px-3.5 py-2">
+            <CreateUpdateLabelInline
+              labelForm={showLabelForm}
+              setLabelForm={setLabelForm}
+              isUpdating={isUpdating}
+              labelOperationsCallbacks={labelOperationsCallbacks}
+              ref={scrollToRef}
+              onClose={() => {
+                setLabelForm(false);
+                setIsUpdating(false);
+              }}
+            />
+          </div>
+        )}
+        {projectLabels ? (
+          projectLabels.length === 0 && !showLabelForm ? (
+            <EmptyStateCompact
+              assetKey="label"
+              assetClassName="size-20"
+              title={t("settings_empty_state.labels.title")}
+              description={t("settings_empty_state.labels.description")}
+              actions={[
+                {
+                  label: t("settings_empty_state.labels.cta_primary"),
+                  onClick: () => {
+                    newLabel();
+                  },
+                },
+              ]}
+              align="start"
+              rootClassName="py-20"
+            />
+          ) : (
+            projectLabelsTree?.map((label, index) => {
+              if (label.children && label.children.length) {
+                return (
+                  <ProjectSettingLabelGroup
+                    key={label.id}
+                    label={label}
+                    labelChildren={label.children || []}
+                    handleLabelDelete={(label: IIssueLabel) => setSelectDeleteLabel(label)}
+                    isUpdating={isUpdating}
+                    setIsUpdating={setIsUpdating}
+                    isLastChild={index === projectLabelsTree.length - 1}
+                    onDrop={onDrop}
+                    isEditable={isEditable}
+                    labelOperationsCallbacks={labelOperationsCallbacks}
+                  />
+                );
+              }
+              return (
+                <ProjectSettingLabelItem
+                  label={label}
+                  key={label.id}
+                  setIsUpdating={setIsUpdating}
+                  handleLabelDelete={(label) => setSelectDeleteLabel(label)}
+                  isChild={false}
+                  isLastChild={index === projectLabelsTree.length - 1}
+                  onDrop={onDrop}
+                  isEditable={isEditable}
+                  labelOperationsCallbacks={labelOperationsCallbacks}
+                />
+              );
+            })
+          )
+        ) : (
+          !showLabelForm && (
+            <Loader className="space-y-5">
+              <Loader.Item height="42px" />
+              <Loader.Item height="42px" />
+              <Loader.Item height="42px" />
+              <Loader.Item height="42px" />
+            </Loader>
+          )
+        )}
+      </div>
+    </>
+  );
+});