diff --git a/frontend/webapp/containers/main/destinations/add-destination/choose-destination-modal-body/index.tsx b/frontend/webapp/containers/main/destinations/add-destination/choose-destination-modal-body/index.tsx
index 160e9b77e..a0e09537f 100644
--- a/frontend/webapp/containers/main/destinations/add-destination/choose-destination-modal-body/index.tsx
+++ b/frontend/webapp/containers/main/destinations/add-destination/choose-destination-modal-body/index.tsx
@@ -1,19 +1,11 @@
-import React, { useEffect, useMemo, useState } from 'react';
-
+import React, { useMemo, useState } from 'react';
 import { SideMenu } from '@/components';
-import { useQuery } from '@apollo/client';
-import { GET_DESTINATION_TYPE } from '@/graphql';
+import { useDestinationTypes } from '@/hooks';
 import { DestinationsList } from '../destinations-list';
 import { Body, Container, SideMenuWrapper } from '../styled';
 import { Divider, SectionTitle } from '@/reuseable-components';
 import { DestinationFilterComponent } from '../choose-destination-menu';
-import {
-  StepProps,
-  DropdownOption,
-  DestinationTypeItem,
-  DestinationsCategory,
-  GetDestinationTypesResponse,
-} from '@/types';
+import { StepProps, DropdownOption, DestinationTypeItem } from '@/types';
 
 interface ChooseDestinationModalBodyProps {
   onSelect: (item: DestinationTypeItem) => void;
@@ -34,42 +26,18 @@ const SIDE_MENU_DATA: StepProps[] = [
 
 const DEFAULT_MONITORS = ['logs', 'metrics', 'traces'];
 const DEFAULT_DROPDOWN_VALUE = { id: 'all', value: 'All types' };
-const CATEGORIES_DESCRIPTION = {
-  managed: 'Effortless Monitoring with Scalable Performance Management',
-  'self hosted':
-    'Full Control and Customization for Advanced Application Monitoring',
-};
-
-export interface IDestinationListItem extends DestinationsCategory {
-  description: string;
-}
 
 export function ChooseDestinationModalBody({
   onSelect,
 }: ChooseDestinationModalBodyProps) {
   const [searchValue, setSearchValue] = useState('');
-  const [destinations, setDestinations] = useState<IDestinationListItem[]>([]);
   const [selectedMonitors, setSelectedMonitors] =
     useState<string[]>(DEFAULT_MONITORS);
   const [dropdownValue, setDropdownValue] = useState<DropdownOption>(
     DEFAULT_DROPDOWN_VALUE
   );
 
-  const { data } = useQuery<GetDestinationTypesResponse>(GET_DESTINATION_TYPE);
-  useEffect(() => {
-    if (data) {
-      const destinationsCategories = data.destinationTypes.categories.map(
-        (category) => {
-          return {
-            name: category.name,
-            description: CATEGORIES_DESCRIPTION[category.name],
-            items: category.items,
-          };
-        }
-      );
-      setDestinations(destinationsCategories);
-    }
-  }, [data]);
+  const { destinations } = useDestinationTypes();
 
   function handleTagSelect(option: DropdownOption) {
     setDropdownValue(option);
diff --git a/frontend/webapp/containers/main/destinations/add-destination/connect-destination-modal-body/index.tsx b/frontend/webapp/containers/main/destinations/add-destination/connect-destination-modal-body/index.tsx
index 0989e7173..e1954ce8e 100644
--- a/frontend/webapp/containers/main/destinations/add-destination/connect-destination-modal-body/index.tsx
+++ b/frontend/webapp/containers/main/destinations/add-destination/connect-destination-modal-body/index.tsx
@@ -1,5 +1,6 @@
-import React, { useEffect, useMemo, useState } from 'react';
+import React, { useEffect, useLayoutEffect, useMemo, useState } from 'react';
 import { useAppStore } from '@/store';
+import { INPUT_TYPES } from '@/utils';
 import { SideMenu } from '@/components';
 import { useQuery } from '@apollo/client';
 import { FormContainer } from './form-container';
@@ -52,14 +53,16 @@ export function ConnectDestinationModalBody({
   const {
     dynamicFields,
     exportedSignals,
-    setExportedSignals,
     setDynamicFields,
+    setExportedSignals,
   } = useDestinationFormData();
 
   const { connectEnv } = useConnectEnv();
   const { buildFormDynamicFields } = useConnectDestinationForm();
+
   const { handleDynamicFieldChange, handleSignalChange } =
     useEditDestinationFormHandlers(setExportedSignals, setDynamicFields);
+
   const addConfiguredDestination = useAppStore(
     ({ addConfiguredDestination }) => addConfiguredDestination
   );
@@ -72,22 +75,15 @@ export function ConnectDestinationModalBody({
     }
   );
 
-  const monitors = useMemo(() => {
-    if (!destination) return [];
+  useLayoutEffect(() => {
+    if (!destination) return;
     const { logs, metrics, traces } = destination.supportedSignals;
-
     setExportedSignals({
       logs: logs.supported,
       metrics: metrics.supported,
       traces: traces.supported,
     });
-
-    return [
-      logs.supported && { id: 'logs', title: 'Logs' },
-      metrics.supported && { id: 'metrics', title: 'Metrics' },
-      traces.supported && { id: 'traces', title: 'Traces' },
-    ].filter(Boolean);
-  }, [destination]);
+  }, [destination, setExportedSignals]);
 
   useEffect(() => {
     if (data && destination) {
@@ -116,22 +112,31 @@ export function ConnectDestinationModalBody({
     const isFormValid = dynamicFields.every((field) =>
       field.required ? field.value : true
     );
-
     onFormValidChange(isFormValid);
   }, [dynamicFields]);
 
+  const monitors = useMemo(() => {
+    if (!destination) return [];
+    const { logs, metrics, traces } = destination.supportedSignals;
+
+    return [
+      logs.supported && { id: 'logs', title: 'Logs' },
+      metrics.supported && { id: 'metrics', title: 'Metrics' },
+      traces.supported && { id: 'traces', title: 'Traces' },
+    ].filter(Boolean);
+  }, [destination]);
+
   function onDynamicFieldChange(name: string, value: any) {
     setShowConnectionError(false);
     handleDynamicFieldChange(name, value);
   }
+  function processFieldValue(field) {
+    return field.componentType === INPUT_TYPES.DROPDOWN
+      ? field.value.value
+      : field.value;
+  }
 
   function processFormFields() {
-    function processFieldValue(field) {
-      return field.componentType === 'dropdown'
-        ? field.value.value
-        : field.value;
-    }
-
     // Prepare fields for the request body
     return dynamicFields.map((field) => ({
       key: field.name,
@@ -140,17 +145,10 @@ export function ConnectDestinationModalBody({
   }
 
   async function handleSubmit() {
-    // Helper function to process field values
-    function processFieldValue(field) {
-      return field.componentType === 'dropdown'
-        ? field.value.value
-        : field.value;
-    }
-
     // Prepare fields for the request body
     const fields = processFormFields();
 
-    // Function to store configured destination
+    // Function to store configured destination to display in the UI
     function storeConfiguredDestination() {
       const destinationTypeDetails = dynamicFields.map((field) => ({
         title: field.title,
@@ -196,6 +194,32 @@ export function ConnectDestinationModalBody({
 
   if (!destination) return null;
 
+  const actionButton = useMemo(() => {
+    if (destination.testConnectionSupported) {
+      return (
+        <TestConnection
+          onError={() => {
+            setShowConnectionError(true);
+            onFormValidChange(false);
+          }}
+          destination={{
+            name: destinationName,
+            type: destination?.type || '',
+            exportedSignals,
+            fields: processFormFields(),
+          }}
+        />
+      );
+    }
+    return null;
+  }, [
+    destination,
+    destinationName,
+    exportedSignals,
+    processFormFields,
+    onFormValidChange,
+  ]);
+
   return (
     <Container>
       <SideMenuWrapper>
@@ -206,24 +230,7 @@ export function ConnectDestinationModalBody({
         <SectionTitle
           title="Create connection"
           description="Connect selected destination with Odigos."
-          actionButton={
-            destination.testConnectionSupported ? (
-              <TestConnection // TODO: refactor this after add form validation
-                onError={() => {
-                  setShowConnectionError(true);
-                  onFormValidChange(false);
-                }}
-                destination={{
-                  name: destinationName,
-                  type: destination?.type || '',
-                  exportedSignals,
-                  fields: processFormFields(),
-                }}
-              />
-            ) : (
-              <></>
-            )
-          }
+          actionButton={actionButton}
         />
         <ConnectionNotification
           showConnectionError={showConnectionError}
diff --git a/frontend/webapp/containers/main/overview/add-entity/index.tsx b/frontend/webapp/containers/main/overview/add-entity/index.tsx
index 913123bbf..f158c2a93 100644
--- a/frontend/webapp/containers/main/overview/add-entity/index.tsx
+++ b/frontend/webapp/containers/main/overview/add-entity/index.tsx
@@ -1,13 +1,13 @@
 import React, { useState, useRef, useCallback } from 'react';
 import Image from 'next/image';
 import theme from '@/styles/theme';
-import { DropdownOption } from '@/types';
+import { AddActionModal } from '../../actions';
 import styled, { css } from 'styled-components';
 import { useActualSources, useOnClickOutside } from '@/hooks';
+import { DropdownOption, OVERVIEW_ENTITY_TYPES } from '@/types';
 import { Button, FadeLoader, Text } from '@/reuseable-components';
 import { AddSourceModal } from '../../sources/choose-sources/choose-source-modal';
 import { AddDestinationModal } from '../../destinations/add-destination/add-destination-modal';
-import { AddActionModal } from '../../actions';
 
 // Styled components for the dropdown UI
 const Container = styled.div`
@@ -61,9 +61,9 @@ const ButtonText = styled(Text)`
 
 // Default options for the dropdown
 const DEFAULT_OPTIONS: DropdownOption[] = [
-  { id: 'sources', value: 'Source' },
-  { id: 'actions', value: 'Action' },
-  { id: 'destinations', value: 'Destination' },
+  { id: 'source', value: 'Source' },
+  { id: 'action', value: 'Action' },
+  { id: 'destination', value: 'Destination' },
 ];
 
 interface AddEntityButtonDropdownProps {
@@ -121,7 +121,7 @@ const AddEntityButtonDropdown: React.FC<AddEntityButtonDropdownProps> = ({
               onClick={() => handleSelect(option)}
             >
               <Image
-                src={`/icons/overview/${option.id}.svg`}
+                src={`/icons/overview/${option.id}s.svg`}
                 width={16}
                 height={16}
                 alt={`Add ${option.value}`}
@@ -132,17 +132,17 @@ const AddEntityButtonDropdown: React.FC<AddEntityButtonDropdownProps> = ({
         </DropdownListContainer>
       )}
       <AddSourceModal
-        isOpen={currentModal === 'sources'}
+        isOpen={currentModal === OVERVIEW_ENTITY_TYPES.SOURCE}
         onClose={handleCloseModal}
         createSourcesForNamespace={createSourcesForNamespace}
         persistNamespaceItems={persistNamespaceItems}
       />
       <AddDestinationModal
-        isModalOpen={currentModal === 'destinations'}
+        isModalOpen={currentModal === OVERVIEW_ENTITY_TYPES.DESTINATION}
         handleCloseModal={handleCloseModal}
       />
       <AddActionModal
-        isModalOpen={currentModal === 'actions'}
+        isModalOpen={currentModal === OVERVIEW_ENTITY_TYPES.ACTION}
         handleCloseModal={handleCloseModal}
       />
     </Container>
diff --git a/frontend/webapp/hooks/destinations/index.ts b/frontend/webapp/hooks/destinations/index.ts
index 01743f661..73ea9289f 100644
--- a/frontend/webapp/hooks/destinations/index.ts
+++ b/frontend/webapp/hooks/destinations/index.ts
@@ -7,3 +7,4 @@ export * from './useActualDestinations';
 export * from './useUpdateDestination';
 export * from './useDestinationFormData';
 export * from './useEditDestinationFormHandlers';
+export * from './useDestinationTypes';
diff --git a/frontend/webapp/hooks/destinations/useDestinationTypes.ts b/frontend/webapp/hooks/destinations/useDestinationTypes.ts
new file mode 100644
index 000000000..ed6ae8265
--- /dev/null
+++ b/frontend/webapp/hooks/destinations/useDestinationTypes.ts
@@ -0,0 +1,36 @@
+import { useQuery } from '@apollo/client';
+import { useEffect, useState } from 'react';
+import { GET_DESTINATION_TYPE } from '@/graphql';
+import { DestinationsCategory, GetDestinationTypesResponse } from '@/types';
+
+const CATEGORIES_DESCRIPTION = {
+  managed: 'Effortless Monitoring with Scalable Performance Management',
+  'self hosted':
+    'Full Control and Customization for Advanced Application Monitoring',
+};
+
+export interface IDestinationListItem extends DestinationsCategory {
+  description: string;
+}
+
+export function useDestinationTypes() {
+  const [destinations, setDestinations] = useState<IDestinationListItem[]>([]);
+  const { data } = useQuery<GetDestinationTypesResponse>(GET_DESTINATION_TYPE);
+
+  useEffect(() => {
+    if (data) {
+      const destinationsCategories = data.destinationTypes.categories.map(
+        (category) => {
+          return {
+            name: category.name,
+            description: CATEGORIES_DESCRIPTION[category.name],
+            items: category.items,
+          };
+        }
+      );
+      setDestinations(destinationsCategories);
+    }
+  }, [data]);
+
+  return { destinations };
+}