diff --git a/worklenz-frontend/public/locales/alb/phases-drawer.json b/worklenz-frontend/public/locales/alb/phases-drawer.json
index de34c740..cccda7d2 100644
--- a/worklenz-frontend/public/locales/alb/phases-drawer.json
+++ b/worklenz-frontend/public/locales/alb/phases-drawer.json
@@ -3,5 +3,17 @@
   "phaseLabel": "Etiketa e Fazës",
   "enterPhaseName": "Vendosni një emër për etiketën e fazës",
   "addOption": "Shto Opsion",
-  "phaseOptions": "Opsionet e Fazës:"
+  "phaseOptions": "Opsionet e Fazës:",
+  "dragToReorderPhases": "Zvarrit fazat për t'i rirenditur. Çdo fazë mund të ketë një ngjyrë të ndryshme.",
+  "enterNewPhaseName": "Shkruani emrin e fazës së re...",
+  "addPhase": "Shto Fazë",
+  "noPhasesFound": "Nuk u gjetën faza. Krijoni fazën tuaj të parë më sipër.",
+  "deletePhase": "Fshi Fazën",
+  "deletePhaseConfirm": "Jeni të sigurt që doni të fshini këtë fazë? Ky veprim nuk mund të zhbëhet.",
+  "rename": "Riemëro",
+  "delete": "Fshi",
+  "enterPhaseName": "Shkruani emrin e fazës",
+  "selectColor": "Zgjidh ngjyrën",
+  "managePhases": "Menaxho Fazat",
+  "close": "Mbyll"
 }
diff --git a/worklenz-frontend/public/locales/alb/task-list-filters.json b/worklenz-frontend/public/locales/alb/task-list-filters.json
index bfb76191..c3156498 100644
--- a/worklenz-frontend/public/locales/alb/task-list-filters.json
+++ b/worklenz-frontend/public/locales/alb/task-list-filters.json
@@ -70,5 +70,16 @@
   "search": "Kërko",
   "groupedBy": "Grupuar sipas",
   "manageStatuses": "Menaxho Statuset",
-  "managePhases": "Menaxho Fazat"
+  "managePhases": "Menaxho Fazat",
+  "dragToReorderStatuses": "Zvarrit statuset për t'i rirenditur. Çdo status mund të ketë një kategori të ndryshme.",
+  "enterNewStatusName": "Shkruani emrin e statusit të ri...",
+  "addStatus": "Shto Status",
+  "noStatusesFound": "Nuk u gjetën statuse. Krijoni statusin tuaj të parë më sipër.",
+  "deleteStatus": "Fshi Statusin",
+  "deleteStatusConfirm": "Jeni të sigurt që doni të fshini këtë status? Ky veprim nuk mund të zhbëhet.",
+  "rename": "Riemëro",
+  "delete": "Fshi",
+  "enterStatusName": "Shkruani emrin e statusit",
+  "selectCategory": "Zgjidh kategorinë",
+  "close": "Mbyll"
 }
diff --git a/worklenz-frontend/public/locales/de/phases-drawer.json b/worklenz-frontend/public/locales/de/phases-drawer.json
index d06e3d05..c9e41e09 100644
--- a/worklenz-frontend/public/locales/de/phases-drawer.json
+++ b/worklenz-frontend/public/locales/de/phases-drawer.json
@@ -3,5 +3,17 @@
   "phaseLabel": "Phasenbezeichnung",
   "enterPhaseName": "Namen für Phasenbezeichnung eingeben",
   "addOption": "Option hinzufügen",
-  "phaseOptions": "Phasenoptionen:"
+  "phaseOptions": "Phasenoptionen:",
+  "dragToReorderPhases": "Ziehen Sie Phasen, um sie neu zu ordnen. Jede Phase kann eine andere Farbe haben.",
+  "enterNewPhaseName": "Neuen Phasennamen eingeben...",
+  "addPhase": "Phase hinzufügen",
+  "noPhasesFound": "Keine Phasen gefunden. Erstellen Sie Ihre erste Phase oben.",
+  "deletePhase": "Phase löschen",
+  "deletePhaseConfirm": "Sind Sie sicher, dass Sie diese Phase löschen möchten? Diese Aktion kann nicht rückgängig gemacht werden.",
+  "rename": "Umbenennen",
+  "delete": "Löschen",
+  "enterPhaseName": "Phasennamen eingeben",
+  "selectColor": "Farbe auswählen",
+  "managePhases": "Phasen verwalten",
+  "close": "Schließen"
 }
diff --git a/worklenz-frontend/public/locales/de/task-list-filters.json b/worklenz-frontend/public/locales/de/task-list-filters.json
index 8c08037f..0854c34f 100644
--- a/worklenz-frontend/public/locales/de/task-list-filters.json
+++ b/worklenz-frontend/public/locales/de/task-list-filters.json
@@ -70,5 +70,16 @@
   "search": "Suchen",
   "groupedBy": "Gruppiert nach",
   "manageStatuses": "Status verwalten",
-  "managePhases": "Phasen verwalten"
+  "managePhases": "Phasen verwalten",
+  "dragToReorderStatuses": "Ziehen Sie Status, um sie neu zu ordnen. Jeder Status kann eine andere Kategorie haben.",
+  "enterNewStatusName": "Neuen Statusnamen eingeben...",
+  "addStatus": "Status hinzufügen",
+  "noStatusesFound": "Keine Status gefunden. Erstellen Sie Ihren ersten Status oben.",
+  "deleteStatus": "Status löschen",
+  "deleteStatusConfirm": "Sind Sie sicher, dass Sie diesen Status löschen möchten? Diese Aktion kann nicht rückgängig gemacht werden.",
+  "rename": "Umbenennen",
+  "delete": "Löschen",
+  "enterStatusName": "Statusnamen eingeben",
+  "selectCategory": "Kategorie auswählen",
+  "close": "Schließen"
 }
diff --git a/worklenz-frontend/public/locales/en/phases-drawer.json b/worklenz-frontend/public/locales/en/phases-drawer.json
index ca870b8f..10ad78a4 100644
--- a/worklenz-frontend/public/locales/en/phases-drawer.json
+++ b/worklenz-frontend/public/locales/en/phases-drawer.json
@@ -3,5 +3,17 @@
   "phaseLabel": "Phase Label",
   "enterPhaseName": "Enter a name for phase label",
   "addOption": "Add Option",
-  "phaseOptions": "Phase Options:"
+  "phaseOptions": "Phase Options:",
+  "dragToReorderPhases": "Drag phases to reorder them. Each phase can have a different color.",
+  "enterNewPhaseName": "Enter new phase name...",
+  "addPhase": "Add Phase",
+  "noPhasesFound": "No phases found. Create your first phase above.",
+  "deletePhase": "Delete Phase",
+  "deletePhaseConfirm": "Are you sure you want to delete this phase? This action cannot be undone.",
+  "rename": "Rename",
+  "delete": "Delete",
+  "enterPhaseName": "Enter phase name",
+  "selectColor": "Select color",
+  "managePhases": "Manage Phases",
+  "close": "Close"
 }
diff --git a/worklenz-frontend/public/locales/en/task-list-filters.json b/worklenz-frontend/public/locales/en/task-list-filters.json
index cdfa00e9..a38356c6 100644
--- a/worklenz-frontend/public/locales/en/task-list-filters.json
+++ b/worklenz-frontend/public/locales/en/task-list-filters.json
@@ -70,5 +70,16 @@
   "search": "Search",
   "groupedBy": "Grouped by",
   "manageStatuses": "Manage Statuses",
-  "managePhases": "Manage Phases"
+  "managePhases": "Manage Phases",
+  "dragToReorderStatuses": "Drag statuses to reorder them. Each status can have a different category.",
+  "enterNewStatusName": "Enter new status name...",
+  "addStatus": "Add Status",
+  "noStatusesFound": "No statuses found. Create your first status above.",
+  "deleteStatus": "Delete Status",
+  "deleteStatusConfirm": "Are you sure you want to delete this status? This action cannot be undone.",
+  "rename": "Rename",
+  "delete": "Delete",
+  "enterStatusName": "Enter status name",
+  "selectCategory": "Select category",
+  "close": "Close"
 }
diff --git a/worklenz-frontend/public/locales/es/phases-drawer.json b/worklenz-frontend/public/locales/es/phases-drawer.json
index 6339389a..e961b068 100644
--- a/worklenz-frontend/public/locales/es/phases-drawer.json
+++ b/worklenz-frontend/public/locales/es/phases-drawer.json
@@ -3,5 +3,17 @@
   "phaseLabel": "Etiqueta de fase",
   "enterPhaseName": "Ingrese un nombre para la etiqueta de fase",
   "addOption": "Agregar opción",
-  "phaseOptions": "Opciones de fase:"
+  "phaseOptions": "Opciones de fase:",
+  "dragToReorderPhases": "Arrastra las fases para reordenarlas. Cada fase puede tener un color diferente.",
+  "enterNewPhaseName": "Introducir nuevo nombre de fase...",
+  "addPhase": "Añadir Fase",
+  "noPhasesFound": "No se encontraron fases. Crea tu primera fase arriba.",
+  "deletePhase": "Eliminar Fase",
+  "deletePhaseConfirm": "¿Estás seguro de que quieres eliminar esta fase? Esta acción no se puede deshacer.",
+  "rename": "Renombrar",
+  "delete": "Eliminar",
+  "enterPhaseName": "Introducir nombre de la fase",
+  "selectColor": "Seleccionar color",
+  "managePhases": "Gestionar Fases",
+  "close": "Cerrar"
 }
diff --git a/worklenz-frontend/public/locales/es/task-list-filters.json b/worklenz-frontend/public/locales/es/task-list-filters.json
index 39aeadb0..465368f0 100644
--- a/worklenz-frontend/public/locales/es/task-list-filters.json
+++ b/worklenz-frontend/public/locales/es/task-list-filters.json
@@ -66,5 +66,16 @@
   "search": "Buscar",
   "groupedBy": "Agrupado por",
   "manageStatuses": "Gestionar Estados",
-  "managePhases": "Gestionar Fases"
+  "managePhases": "Gestionar Fases",
+  "dragToReorderStatuses": "Arrastra los estados para reordenarlos. Cada estado puede tener una categoría diferente.",
+  "enterNewStatusName": "Introducir nuevo nombre de estado...",
+  "addStatus": "Añadir Estado",
+  "noStatusesFound": "No se encontraron estados. Crea tu primer estado arriba.",
+  "deleteStatus": "Eliminar Estado",
+  "deleteStatusConfirm": "¿Estás seguro de que quieres eliminar este estado? Esta acción no se puede deshacer.",
+  "rename": "Renombrar",
+  "delete": "Eliminar",
+  "enterStatusName": "Introducir nombre del estado",
+  "selectCategory": "Seleccionar categoría",
+  "close": "Cerrar"
 }
diff --git a/worklenz-frontend/public/locales/pt/phases-drawer.json b/worklenz-frontend/public/locales/pt/phases-drawer.json
index 6339389a..080b13df 100644
--- a/worklenz-frontend/public/locales/pt/phases-drawer.json
+++ b/worklenz-frontend/public/locales/pt/phases-drawer.json
@@ -1,7 +1,19 @@
 {
   "configurePhases": "Configurar fases",
   "phaseLabel": "Etiqueta de fase",
-  "enterPhaseName": "Ingrese un nombre para la etiqueta de fase",
-  "addOption": "Agregar opción",
-  "phaseOptions": "Opciones de fase:"
+  "enterPhaseName": "Digite um nome para o rótulo da fase",
+  "addOption": "Adicionar Opção",
+  "phaseOptions": "Opções de Fase:",
+  "dragToReorderPhases": "Arraste as fases para reordená-las. Cada fase pode ter uma cor diferente.",
+  "enterNewPhaseName": "Digite o novo nome da fase...",
+  "addPhase": "Adicionar Fase",
+  "noPhasesFound": "Nenhuma fase encontrada. Crie sua primeira fase acima.",
+  "deletePhase": "Excluir Fase",
+  "deletePhaseConfirm": "Tem certeza de que deseja excluir esta fase? Esta ação não pode ser desfeita.",
+  "rename": "Renomear",
+  "delete": "Excluir",
+  "enterPhaseName": "Digite o nome da fase",
+  "selectColor": "Selecionar cor",
+  "managePhases": "Gerenciar Fases",
+  "close": "Fechar"
 }
diff --git a/worklenz-frontend/public/locales/pt/task-list-filters.json b/worklenz-frontend/public/locales/pt/task-list-filters.json
index 0bd8bc31..21e8806b 100644
--- a/worklenz-frontend/public/locales/pt/task-list-filters.json
+++ b/worklenz-frontend/public/locales/pt/task-list-filters.json
@@ -67,5 +67,16 @@
   "search": "Pesquisar",
   "groupedBy": "Agrupado por",
   "manageStatuses": "Gerenciar Status",
-  "managePhases": "Gerenciar Fases"
+  "managePhases": "Gerenciar Fases",
+  "dragToReorderStatuses": "Arraste os status para reordená-los. Cada status pode ter uma categoria diferente.",
+  "enterNewStatusName": "Digite o novo nome do status...",
+  "addStatus": "Adicionar Status",
+  "noStatusesFound": "Nenhum status encontrado. Crie seu primeiro status acima.",
+  "deleteStatus": "Excluir Status",
+  "deleteStatusConfirm": "Tem certeza de que deseja excluir este status? Esta ação não pode ser desfeita.",
+  "rename": "Renomear",
+  "delete": "Excluir",
+  "enterStatusName": "Digite o nome do status",
+  "selectCategory": "Selecionar categoria",
+  "close": "Fechar"
 }
diff --git a/worklenz-frontend/public/locales/zh/phases-drawer.json b/worklenz-frontend/public/locales/zh/phases-drawer.json
index 4bfb2a13..24d21b38 100644
--- a/worklenz-frontend/public/locales/zh/phases-drawer.json
+++ b/worklenz-frontend/public/locales/zh/phases-drawer.json
@@ -3,5 +3,17 @@
     "phaseLabel": "阶段标签",
     "enterPhaseName": "输入阶段标签名称",
     "addOption": "添加选项",
-    "phaseOptions": "阶段选项："
+    "phaseOptions": "阶段选项：",
+    "dragToReorderPhases": "拖拽阶段以重新排序。每个阶段可以有不同的颜色。",
+    "enterNewPhaseName": "输入新阶段名称...",
+    "addPhase": "添加阶段",
+    "noPhasesFound": "未找到阶段。请在上面创建您的第一个阶段。",
+    "deletePhase": "删除阶段",
+    "deletePhaseConfirm": "您确定要删除此阶段吗？此操作无法撤销。",
+    "rename": "重命名",
+    "delete": "删除",
+    "enterPhaseName": "输入阶段名称",
+    "selectColor": "选择颜色",
+    "managePhases": "管理阶段",
+    "close": "关闭"
 }
\ No newline at end of file
diff --git a/worklenz-frontend/public/locales/zh/task-list-filters.json b/worklenz-frontend/public/locales/zh/task-list-filters.json
index f6a50e1e..84387509 100644
--- a/worklenz-frontend/public/locales/zh/task-list-filters.json
+++ b/worklenz-frontend/public/locales/zh/task-list-filters.json
@@ -64,5 +64,16 @@
   "search": "搜索",
   "groupedBy": "分组依据",
   "manageStatuses": "管理状态",
-  "managePhases": "管理阶段"
+  "managePhases": "管理阶段",
+  "dragToReorderStatuses": "拖拽状态以重新排序。每个状态可以有不同的类别。",
+  "enterNewStatusName": "输入新状态名称...",
+  "addStatus": "添加状态",
+  "noStatusesFound": "未找到状态。请在上面创建您的第一个状态。",
+  "deleteStatus": "删除状态",
+  "deleteStatusConfirm": "您确定要删除此状态吗？此操作无法撤销。",
+  "rename": "重命名",
+  "delete": "删除",
+  "enterStatusName": "输入状态名称",
+  "selectCategory": "选择类别",
+  "close": "关闭"
 }
\ No newline at end of file
diff --git a/worklenz-frontend/src/components/task-management/CreateTaskModal.css b/worklenz-frontend/src/components/task-management/CreateTaskModal.css
new file mode 100644
index 00000000..481e986c
--- /dev/null
+++ b/worklenz-frontend/src/components/task-management/CreateTaskModal.css
@@ -0,0 +1,188 @@
+/* CreateTaskModal.css */
+
+/* Dark mode modal styling */
+.dark-modal .ant-modal-content {
+  background-color: #1f1f1f;
+  border: 1px solid #303030;
+}
+
+.dark-modal .ant-modal-header {
+  background-color: #1f1f1f;
+  border-bottom: 1px solid #303030;
+}
+
+.dark-modal .ant-modal-body {
+  background-color: #1f1f1f;
+}
+
+.dark-modal .ant-modal-footer {
+  background-color: #1f1f1f;
+  border-top: 1px solid #303030;
+}
+
+.dark-modal .ant-tabs-content-holder {
+  background-color: #1f1f1f;
+}
+
+.dark-modal .ant-tabs-tab {
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-tabs-tab-active {
+  color: #ffffff;
+}
+
+.dark-modal .ant-form-item-label > label {
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-input,
+.dark-modal .ant-select-selector,
+.dark-modal .ant-picker {
+  background-color: #141414;
+  border-color: #303030;
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-input::placeholder,
+.dark-modal .ant-select-selection-placeholder {
+  color: #8c8c8c;
+}
+
+.dark-modal .ant-select-dropdown {
+  background-color: #1f1f1f;
+  border-color: #303030;
+}
+
+.dark-modal .ant-select-item {
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-select-item-option-selected {
+  background-color: #262626;
+}
+
+.dark-modal .ant-select-item:hover {
+  background-color: #262626;
+}
+
+/* Status management section styling */
+.status-item {
+  transition: all 0.2s ease;
+}
+
+.status-item:hover {
+  transform: translateY(-1px);
+  box-shadow: 0 4px 12px rgba(0, 0, 0, 0.15);
+}
+
+.dark-modal .status-item:hover {
+  box-shadow: 0 4px 12px rgba(0, 0, 0, 0.3);
+}
+
+/* Drag handle styling */
+.drag-handle {
+  cursor: grab;
+  opacity: 0.6;
+  transition: opacity 0.2s ease;
+}
+
+.drag-handle:hover {
+  opacity: 1;
+}
+
+.drag-handle:active {
+  cursor: grabbing;
+}
+
+/* Status color indicator */
+.status-color {
+  box-shadow: 0 0 0 1px rgba(0, 0, 0, 0.1);
+}
+
+.dark-modal .status-color {
+  box-shadow: 0 0 0 1px rgba(255, 255, 255, 0.1);
+}
+
+/* Sortable item styling */
+.sortable-status-item {
+  transition: transform 0.2s ease, opacity 0.2s ease;
+}
+
+.sortable-status-item.is-dragging {
+  transform: scale(1.02);
+  z-index: 999;
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.2);
+}
+
+.dark-modal .sortable-status-item.is-dragging {
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.4);
+}
+
+/* Form styling improvements */
+.dark-modal .ant-form-item-required::before {
+  color: #ff4d4f;
+}
+
+.dark-modal .ant-btn-primary {
+  background-color: #1890ff;
+  border-color: #1890ff;
+}
+
+.dark-modal .ant-btn-primary:hover {
+  background-color: #40a9ff;
+  border-color: #40a9ff;
+}
+
+.dark-modal .ant-btn-text:hover {
+  background-color: #262626;
+}
+
+/* Responsive design */
+@media (max-width: 768px) {
+  .dark-modal .ant-modal {
+    width: 95% !important;
+    margin: 10px;
+  }
+  
+  .dark-modal .ant-modal-body {
+    padding: 16px;
+  }
+  
+  .status-item {
+    padding: 12px;
+  }
+}
+
+/* Accessibility improvements */
+.drag-handle:focus {
+  outline: 2px solid #1890ff;
+  outline-offset: 2px;
+}
+
+.dark-modal .drag-handle:focus {
+  outline-color: #40a9ff;
+}
+
+/* Animation for status creation */
+.status-item-enter {
+  opacity: 0;
+  transform: translateY(-10px);
+}
+
+.status-item-enter-active {
+  opacity: 1;
+  transform: translateY(0);
+  transition: opacity 0.3s ease, transform 0.3s ease;
+}
+
+.status-item-exit {
+  opacity: 1;
+  transform: translateY(0);
+}
+
+.status-item-exit-active {
+  opacity: 0;
+  transform: translateY(-10px);
+  transition: opacity 0.3s ease, transform 0.3s ease;
+} 
\ No newline at end of file
diff --git a/worklenz-frontend/src/components/task-management/CreateTaskModal.tsx b/worklenz-frontend/src/components/task-management/CreateTaskModal.tsx
new file mode 100644
index 00000000..c69aad5d
--- /dev/null
+++ b/worklenz-frontend/src/components/task-management/CreateTaskModal.tsx
@@ -0,0 +1,553 @@
+import React, { useState, useCallback, useRef, useEffect } from 'react';
+import { Modal, Form, Input, Button, Tabs, Space, Divider, Typography, Flex, DatePicker, Select } from 'antd';
+import { PlusOutlined, DragOutlined } from '@ant-design/icons';
+import { useTranslation } from 'react-i18next';
+import { DndContext, DragEndEvent, PointerSensor, useSensor, useSensors } from '@dnd-kit/core';
+import { SortableContext, useSortable, verticalListSortingStrategy } from '@dnd-kit/sortable';
+import { CSS } from '@dnd-kit/utilities';
+
+import { useAppSelector } from '@/hooks/useAppSelector';
+import { useAppDispatch } from '@/hooks/useAppDispatch';
+import TaskDetailsForm from '@/components/task-drawer/shared/info-tab/task-details-form';
+import AssigneeSelector from '@/components/AssigneeSelector';
+import LabelsSelector from '@/components/LabelsSelector';
+import { createStatus, fetchStatuses, fetchStatusesCategories } from '@/features/taskAttributes/taskStatusSlice';
+import { statusApiService } from '@/api/taskAttributes/status/status.api.service';
+import { ITaskStatusUpdateModel } from '@/types/tasks/task-status-update-model.types';
+import { Modal as AntModal } from 'antd';
+import { useSocket } from '@/socket/socketContext';
+import { SocketEvents } from '@/shared/socket-events';
+import { useAuthService } from '@/hooks/useAuth';
+import { fetchTasksV3 } from '@/features/task-management/task-management.slice';
+import './CreateTaskModal.css';
+
+const { Title, Text } = Typography;
+const { TabPane } = Tabs;
+
+interface CreateTaskModalProps {
+  open: boolean;
+  onClose: () => void;
+  projectId?: string;
+}
+
+interface StatusItemProps {
+  status: any;
+  onRename: (id: string, name: string) => void;
+  onDelete: (id: string) => void;
+  isDarkMode: boolean;
+}
+
+// Sortable Status Item Component
+const SortableStatusItem: React.FC<StatusItemProps & { id: string }> = ({
+  id,
+  status,
+  onRename,
+  onDelete,
+  isDarkMode,
+}) => {
+  const [isEditing, setIsEditing] = useState(false);
+  const [editName, setEditName] = useState(status.name || '');
+  const inputRef = useRef<any>(null);
+
+  const {
+    attributes,
+    listeners,
+    setNodeRef,
+    transform,
+    transition,
+    isDragging,
+  } = useSortable({ id });
+
+  const style = {
+    transform: CSS.Transform.toString(transform),
+    transition,
+    opacity: isDragging ? 0.5 : 1,
+  };
+
+  const handleSave = useCallback(() => {
+    if (editName.trim() && editName.trim() !== status.name) {
+      onRename(id, editName.trim());
+    }
+    setIsEditing(false);
+  }, [editName, id, onRename, status.name]);
+
+  const handleCancel = useCallback(() => {
+    setEditName(status.name || '');
+    setIsEditing(false);
+  }, [status.name]);
+
+  const handleKeyDown = useCallback((e: React.KeyboardEvent) => {
+    if (e.key === 'Enter') {
+      handleSave();
+    } else if (e.key === 'Escape') {
+      handleCancel();
+    }
+  }, [handleSave, handleCancel]);
+
+  useEffect(() => {
+    if (isEditing && inputRef.current) {
+      inputRef.current.focus();
+      inputRef.current.select();
+    }
+  }, [isEditing]);
+
+  return (
+    <div
+      ref={setNodeRef}
+      style={style}
+      className={`flex items-center gap-3 p-3 rounded-md border transition-all duration-200 ${
+        isDarkMode
+          ? 'bg-gray-800 border-gray-700 hover:bg-gray-750'
+          : 'bg-gray-50 border-gray-200 hover:bg-gray-100'
+      }`}
+    >
+      {/* Drag Handle */}
+      <div
+        {...attributes}
+        {...listeners}
+        className={`cursor-grab active:cursor-grabbing p-1 rounded ${
+          isDarkMode ? 'text-gray-400 hover:text-gray-300' : 'text-gray-500 hover:text-gray-600'
+        }`}
+      >
+        <DragOutlined />
+      </div>
+
+      {/* Status Color */}
+      <div
+        className="w-4 h-4 rounded-full border"
+        style={{
+          backgroundColor: status.color_code || '#gray',
+          borderColor: isDarkMode ? '#374151' : '#d1d5db',
+        }}
+      />
+
+      {/* Status Name */}
+      <div className="flex-1">
+        {isEditing ? (
+          <Input
+            ref={inputRef}
+            value={editName}
+            onChange={(e) => setEditName(e.target.value)}
+            onBlur={handleSave}
+            onKeyDown={handleKeyDown}
+            size="small"
+            className="font-medium"
+          />
+        ) : (
+          <Text
+            className={`font-medium cursor-pointer ${
+              isDarkMode ? 'text-gray-200' : 'text-gray-800'
+            }`}
+            onClick={() => setIsEditing(true)}
+          >
+            {status.name}
+          </Text>
+        )}
+      </div>
+
+      {/* Actions */}
+      <Space size="small">
+        <Button
+          type="text"
+          size="small"
+          onClick={() => setIsEditing(true)}
+          className={isDarkMode ? 'text-gray-400 hover:text-gray-300' : 'text-gray-500 hover:text-gray-600'}
+        >
+          Rename
+        </Button>
+        <Button
+          type="text"
+          size="small"
+          danger
+          onClick={() => onDelete(id)}
+          className="text-red-500 hover:text-red-600"
+        >
+          Delete
+        </Button>
+      </Space>
+    </div>
+  );
+};
+
+// Status Management Component
+const StatusManagement: React.FC<{
+  projectId: string;
+  isDarkMode: boolean;
+}> = ({ projectId, isDarkMode }) => {
+  const { t } = useTranslation('task-list-filters');
+  const dispatch = useAppDispatch();
+  
+  const { status: statuses } = useAppSelector(state => state.taskStatusReducer);
+  const [localStatuses, setLocalStatuses] = useState(statuses);
+  const [newStatusName, setNewStatusName] = useState('');
+
+  // DnD sensors
+  const sensors = useSensors(
+    useSensor(PointerSensor, {
+      activationConstraint: {
+        distance: 8,
+      },
+    })
+  );
+
+  useEffect(() => {
+    setLocalStatuses(statuses);
+  }, [statuses]);
+
+  const handleDragEnd = useCallback((event: DragEndEvent) => {
+    const { active, over } = event;
+
+    if (!over || active.id === over.id) {
+      return;
+    }
+
+    setLocalStatuses((items) => {
+      const oldIndex = items.findIndex((item) => item.id === active.id);
+      const newIndex = items.findIndex((item) => item.id === over.id);
+
+      if (oldIndex === -1 || newIndex === -1) return items;
+
+      const newItems = [...items];
+      const [movedItem] = newItems.splice(oldIndex, 1);
+      newItems.splice(newIndex, 0, movedItem);
+
+      // Update status order via API (fire and forget)
+      const columnOrder = newItems.map(item => item.id).filter(Boolean) as string[];
+      const requestBody = { status_order: columnOrder };
+      statusApiService.updateStatusOrder(requestBody, projectId).catch(error => {
+        console.error('Error updating status order:', error);
+      });
+
+      return newItems;
+    });
+  }, []);
+
+  const handleCreateStatus = useCallback(async () => {
+    if (!newStatusName.trim()) return;
+
+    try {
+      const statusCategories = await dispatch(fetchStatusesCategories()).unwrap();
+      const defaultCategory = statusCategories[0]?.id;
+      
+      if (!defaultCategory) {
+        console.error('No status categories found');
+        return;
+      }
+
+      const body = {
+        name: newStatusName.trim(),
+        category_id: defaultCategory,
+        project_id: projectId,
+      };
+
+      const res = await dispatch(createStatus({ body, currentProjectId: projectId })).unwrap();
+      if (res.done) {
+        setNewStatusName('');
+        dispatch(fetchStatuses(projectId));
+      }
+    } catch (error) {
+      console.error('Error creating status:', error);
+    }
+  }, [newStatusName, projectId, dispatch]);
+
+  const handleRenameStatus = useCallback(async (id: string, name: string) => {
+    try {
+      const body: ITaskStatusUpdateModel = {
+        name: name.trim(),
+        project_id: projectId,
+      };
+      
+      await statusApiService.updateNameOfStatus(id, body, projectId);
+      dispatch(fetchStatuses(projectId));
+    } catch (error) {
+      console.error('Error renaming status:', error);
+    }
+  }, [projectId, dispatch]);
+
+  const handleDeleteStatus = useCallback(async (id: string) => {
+    AntModal.confirm({
+      title: 'Delete Status',
+      content: 'Are you sure you want to delete this status? This action cannot be undone.',
+      onOk: async () => {
+        try {
+          const replacingStatusId = localStatuses.find(s => s.id !== id)?.id || '';
+          await statusApiService.deleteStatus(id, projectId, replacingStatusId);
+          dispatch(fetchStatuses(projectId));
+        } catch (error) {
+          console.error('Error deleting status:', error);
+        }
+      },
+    });
+  }, [localStatuses, projectId, dispatch]);
+
+  return (
+    <div className="space-y-4">
+      <div className="flex items-center justify-between">
+        <Title level={5} className={isDarkMode ? 'text-gray-200' : 'text-gray-800'}>
+          {t('manageStatuses')}
+        </Title>
+        <Text type="secondary" className="text-sm">
+          Drag to reorder
+        </Text>
+      </div>
+
+      {/* Create New Status */}
+      <div className="flex gap-2">
+        <Input
+          placeholder="Enter status name"
+          value={newStatusName}
+          onChange={(e) => setNewStatusName(e.target.value)}
+          onPressEnter={handleCreateStatus}
+          className="flex-1"
+        />
+        <Button
+          type="primary"
+          icon={<PlusOutlined />}
+          onClick={handleCreateStatus}
+          disabled={!newStatusName.trim()}
+        >
+          Add
+        </Button>
+      </div>
+
+      <Divider className={isDarkMode ? 'border-gray-700' : 'border-gray-300'} />
+
+      {/* Status List with Drag & Drop */}
+      <DndContext sensors={sensors} onDragEnd={handleDragEnd}>
+        <SortableContext
+          items={localStatuses.filter(status => status.id).map(status => status.id as string)}
+          strategy={verticalListSortingStrategy}
+        >
+          <div className="space-y-2">
+            {localStatuses.filter(status => status.id).map((status) => (
+              <SortableStatusItem
+                key={status.id}
+                id={status.id!}
+                status={status}
+                onRename={handleRenameStatus}
+                onDelete={handleDeleteStatus}
+                isDarkMode={isDarkMode}
+              />
+            ))}
+          </div>
+        </SortableContext>
+      </DndContext>
+
+      {localStatuses.length === 0 && (
+        <div className={`text-center py-8 ${isDarkMode ? 'text-gray-400' : 'text-gray-500'}`}>
+          <Text>No statuses found. Create your first status above.</Text>
+        </div>
+      )}
+    </div>
+  );
+};
+
+const CreateTaskModal: React.FC<CreateTaskModalProps> = ({
+  open,
+  onClose,
+  projectId,
+}) => {
+  const { t } = useTranslation('task-drawer/task-drawer');
+  const [form] = Form.useForm();
+  const [activeTab, setActiveTab] = useState('task-info');
+  const dispatch = useAppDispatch();
+  
+  // Redux state
+  const isDarkMode = useAppSelector(state => state.themeReducer?.mode === 'dark');
+  const currentProjectId = useAppSelector(state => state.projectReducer.projectId);
+  const user = useAppSelector(state => state.auth?.user);
+  
+  const finalProjectId = projectId || currentProjectId;
+
+  const handleSubmit = useCallback(async () => {
+    try {
+      const values = await form.validateFields();
+      
+      const { socket } = useSocket();
+      
+      if (!socket || !user || !finalProjectId) {
+        console.error('Missing socket, user, or project ID');
+        return;
+      }
+
+      const taskData = {
+        name: values.name,
+        description: values.description || null,
+        project_id: finalProjectId,
+        status_id: values.status || null,
+        priority_id: values.priority || null,
+        assignees: values.assignees || [],
+        due_date: values.dueDate ? values.dueDate.format('YYYY-MM-DD') : null,
+        reporter_id: user.id,
+      };
+
+      // Create task via socket
+      socket.emit(SocketEvents.QUICK_TASK.toString(), taskData);
+      
+      // Refresh task list
+      dispatch(fetchTasksV3(finalProjectId));
+      
+      // Reset form and close modal
+      form.resetFields();
+      setActiveTab('task-info');
+      onClose();
+      
+    } catch (error) {
+      console.error('Form validation failed:', error);
+    }
+  }, [form, finalProjectId, dispatch, onClose]);
+
+  const handleCancel = useCallback(() => {
+    form.resetFields();
+    setActiveTab('task-info');
+    onClose();
+  }, [form, onClose]);
+
+  return (
+    <Modal
+      title={
+        <Title level={4} className={isDarkMode ? 'text-gray-200' : 'text-gray-800'}>
+          {t('createTask')}
+        </Title>
+      }
+      open={open}
+      onCancel={handleCancel}
+      width={800}
+      style={{ top: 20 }}
+      bodyStyle={{
+        maxHeight: 'calc(100vh - 200px)',
+        overflowY: 'auto',
+        padding: '24px',
+      }}
+      footer={
+        <Flex justify="space-between" align="center">
+          <div></div>
+          <Space>
+            <Button onClick={handleCancel}>
+              {t('cancel')}
+            </Button>
+            <Button type="primary" onClick={handleSubmit}>
+              {t('createTask')}
+            </Button>
+          </Space>
+        </Flex>
+      }
+      className={isDarkMode ? 'dark-modal' : ''}
+    >
+      <Tabs
+        activeKey={activeTab}
+        onChange={setActiveTab}
+        type="card"
+        items={[
+          {
+            key: 'task-info',
+            label: t('taskInfo'),
+            children: (
+              <div className="py-4">
+                <Form
+                  form={form}
+                  layout="vertical"
+                  initialValues={{
+                    priority: 'medium',
+                    billable: false,
+                  }}
+                >
+                  <Form.Item
+                    name="name"
+                    label={t('taskName')}
+                    rules={[{ required: true, message: t('taskNameRequired') }]}
+                  >
+                    <Input
+                      placeholder={t('taskNamePlaceholder')}
+                      autoFocus
+                      maxLength={250}
+                      showCount
+                    />
+                  </Form.Item>
+
+                                     <Form.Item
+                     name="description"
+                     label={t('description')}
+                   >
+                     <Input.TextArea
+                       placeholder={t('descriptionPlaceholder')}
+                       rows={4}
+                       maxLength={1000}
+                       showCount
+                     />
+                   </Form.Item>
+
+                   {/* Status Selection */}
+                   <Form.Item
+                     name="status"
+                     label={t('status')}
+                     rules={[{ required: true, message: 'Please select a status' }]}
+                   >
+                     <Select placeholder="Select status">
+                       {/* TODO: Populate with actual statuses */}
+                       <Select.Option value="todo">To Do</Select.Option>
+                       <Select.Option value="inprogress">In Progress</Select.Option>
+                       <Select.Option value="done">Done</Select.Option>
+                     </Select>
+                   </Form.Item>
+
+                   {/* Priority Selection */}
+                   <Form.Item
+                     name="priority"
+                     label={t('priority')}
+                   >
+                     <Select placeholder="Select priority">
+                       <Select.Option value="low">Low</Select.Option>
+                       <Select.Option value="medium">Medium</Select.Option>
+                       <Select.Option value="high">High</Select.Option>
+                     </Select>
+                   </Form.Item>
+
+                   {/* Assignees */}
+                   <Form.Item
+                     name="assignees"
+                     label={t('assignees')}
+                   >
+                     <Select mode="multiple" placeholder="Select assignees">
+                       {/* TODO: Populate with team members */}
+                     </Select>
+                   </Form.Item>
+
+                   {/* Due Date */}
+                   <Form.Item
+                     name="dueDate"
+                     label={t('dueDate')}
+                   >
+                     <DatePicker 
+                       className="w-full"
+                       placeholder="Select due date"
+                     />
+                   </Form.Item>
+                  
+                </Form>
+              </div>
+            ),
+          },
+          {
+            key: 'status-management',
+            label: t('manageStatuses'),
+            children: finalProjectId ? (
+              <div className="py-4">
+                <StatusManagement 
+                  projectId={finalProjectId} 
+                  isDarkMode={isDarkMode} 
+                />
+              </div>
+            ) : (
+              <div className={`text-center py-8 ${isDarkMode ? 'text-gray-400' : 'text-gray-500'}`}>
+                <Text>Project ID is required for status management.</Text>
+              </div>
+            ),
+          },
+        ]}
+      />
+    </Modal>
+  );
+};
+
+export default CreateTaskModal; 
\ No newline at end of file
diff --git a/worklenz-frontend/src/components/task-management/ManagePhaseModal.css b/worklenz-frontend/src/components/task-management/ManagePhaseModal.css
new file mode 100644
index 00000000..e36bcd73
--- /dev/null
+++ b/worklenz-frontend/src/components/task-management/ManagePhaseModal.css
@@ -0,0 +1,277 @@
+/* ManagePhaseModal.css */
+
+/* Dark mode modal styling */
+.dark-modal .ant-modal-content {
+  background-color: #1f1f1f;
+  border: 1px solid #303030;
+}
+
+.dark-modal .ant-modal-header {
+  background-color: #1f1f1f;
+  border-bottom: 1px solid #303030;
+}
+
+.dark-modal .ant-modal-body {
+  background-color: #1f1f1f;
+}
+
+.dark-modal .ant-modal-footer {
+  background-color: #1f1f1f;
+  border-top: 1px solid #303030;
+}
+
+.dark-modal .ant-form-item-label > label {
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-input,
+.dark-modal .ant-select-selector {
+  background-color: #141414;
+  border-color: #303030;
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-input::placeholder {
+  color: #8c8c8c;
+}
+
+.dark-modal .ant-btn-primary {
+  background-color: #1890ff;
+  border-color: #1890ff;
+}
+
+.dark-modal .ant-btn-primary:hover {
+  background-color: #40a9ff;
+  border-color: #40a9ff;
+}
+
+.dark-modal .ant-btn-text:hover {
+  background-color: #262626;
+}
+
+/* Color picker styling */
+.dark-modal .ant-color-picker-trigger {
+  background-color: #141414;
+  border-color: #303030;
+}
+
+.dark-modal .ant-color-picker-trigger:hover {
+  border-color: #40a9ff;
+}
+
+.dark-modal .ant-color-picker-panel {
+  background-color: #1f1f1f;
+  border-color: #303030;
+}
+
+/* Phase management section styling */
+.phase-item {
+  transition: all 0.2s ease;
+}
+
+.phase-item:hover {
+  transform: translateY(-1px);
+  box-shadow: 0 6px 16px rgba(0, 0, 0, 0.1);
+}
+
+.dark-modal .phase-item:hover {
+  box-shadow: 0 6px 16px rgba(0, 0, 0, 0.4);
+}
+
+/* Enhanced phase card styling */
+.phase-card {
+  border-radius: 8px;
+  transition: all 0.2s cubic-bezier(0.4, 0, 0.2, 1);
+}
+
+.phase-card:hover {
+  transform: translateY(-1px);
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.12);
+}
+
+.dark-modal .phase-card:hover {
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.4);
+}
+
+/* Drag handle styling */
+.drag-handle {
+  cursor: grab;
+  opacity: 0.6;
+  transition: opacity 0.2s ease;
+}
+
+.drag-handle:hover {
+  opacity: 1;
+}
+
+.drag-handle:active {
+  cursor: grabbing;
+}
+
+/* Phase color picker styling */
+.phase-color-picker {
+  border-radius: 6px;
+  overflow: hidden;
+  transition: all 0.2s ease;
+}
+
+.phase-color-picker:hover {
+  transform: scale(1.05);
+}
+
+.dark-modal .phase-color-picker {
+  border-color: #303030;
+}
+
+.dark-modal .phase-color-picker:hover {
+  border-color: #40a9ff;
+}
+
+/* Improved drag handle */
+.drag-handle {
+  cursor: grab;
+  opacity: 0.7;
+  transition: all 0.2s ease;
+  border-radius: 6px;
+}
+
+.drag-handle:hover {
+  opacity: 1;
+  background-color: rgba(0, 0, 0, 0.05);
+}
+
+.dark-modal .drag-handle:hover {
+  background-color: rgba(255, 255, 255, 0.1);
+}
+
+.drag-handle:active {
+  cursor: grabbing;
+  transform: scale(0.95);
+}
+
+/* Phase color dot enhancement */
+.phase-color-dot {
+  transition: all 0.2s ease;
+  box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);
+}
+
+.phase-color-dot:hover {
+  transform: scale(1.1);
+  box-shadow: 0 4px 8px rgba(0, 0, 0, 0.15);
+}
+
+.dark-modal .phase-color-dot {
+  box-shadow: 0 2px 4px rgba(0, 0, 0, 0.3);
+}
+
+.dark-modal .phase-color-dot:hover {
+  box-shadow: 0 4px 8px rgba(0, 0, 0, 0.4);
+}
+
+/* Sortable item styling */
+.sortable-phase-item {
+  transition: transform 0.2s ease, opacity 0.2s ease;
+}
+
+.sortable-phase-item.is-dragging {
+  transform: scale(1.02);
+  z-index: 999;
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.2);
+}
+
+.dark-modal .sortable-phase-item.is-dragging {
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.4);
+}
+
+/* Phase label input styling */
+.phase-label-input {
+  margin-bottom: 16px;
+}
+
+.dark-modal .phase-label-input .ant-input {
+  background-color: #141414;
+  border-color: #303030;
+  color: #d9d9d9;
+}
+
+.dark-modal .phase-label-input .ant-input:focus {
+  border-color: #40a9ff;
+  box-shadow: 0 0 0 2px rgba(64, 169, 255, 0.2);
+}
+
+/* Responsive design */
+@media (max-width: 768px) {
+  .dark-modal .ant-modal {
+    width: 95% !important;
+    margin: 10px;
+  }
+  
+  .dark-modal .ant-modal-body {
+    padding: 16px;
+  }
+  
+  .phase-item {
+    padding: 12px;
+  }
+  
+  .phase-color-picker {
+    width: 24px;
+    height: 24px;
+  }
+}
+
+/* Accessibility improvements */
+.drag-handle:focus {
+  outline: 2px solid #1890ff;
+  outline-offset: 2px;
+}
+
+.dark-modal .drag-handle:focus {
+  outline-color: #40a9ff;
+}
+
+.phase-color-picker:focus {
+  outline: 2px solid #1890ff;
+  outline-offset: 2px;
+}
+
+.dark-modal .phase-color-picker:focus {
+  outline-color: #40a9ff;
+}
+
+/* Animation for phase creation */
+.phase-item-enter {
+  opacity: 0;
+  transform: translateY(-10px);
+}
+
+.phase-item-enter-active {
+  opacity: 1;
+  transform: translateY(0);
+  transition: opacity 0.3s ease, transform 0.3s ease;
+}
+
+.phase-item-exit {
+  opacity: 1;
+  transform: translateY(0);
+}
+
+.phase-item-exit-active {
+  opacity: 0;
+  transform: translateY(-10px);
+  transition: opacity 0.3s ease, transform 0.3s ease;
+}
+
+/* Loading state styling */
+.dark-modal .ant-spin-container {
+  background-color: transparent;
+}
+
+.dark-modal .ant-spin-dot-item {
+  background-color: #40a9ff;
+}
+
+/* Divider styling for dark mode */
+.dark-modal .ant-divider-horizontal {
+  border-color: #303030;
+} 
\ No newline at end of file
diff --git a/worklenz-frontend/src/components/task-management/ManagePhaseModal.tsx b/worklenz-frontend/src/components/task-management/ManagePhaseModal.tsx
new file mode 100644
index 00000000..0e10d437
--- /dev/null
+++ b/worklenz-frontend/src/components/task-management/ManagePhaseModal.tsx
@@ -0,0 +1,519 @@
+import React, { useState, useCallback, useRef, useEffect } from 'react';
+import { Modal, Form, Input, Button, Space, Divider, Typography, Flex, ColorPicker } from 'antd';
+import { PlusOutlined, HolderOutlined } from '@ant-design/icons';
+import { useTranslation } from 'react-i18next';
+import { DndContext, DragEndEvent, PointerSensor, useSensor, useSensors } from '@dnd-kit/core';
+import { SortableContext, useSortable, verticalListSortingStrategy } from '@dnd-kit/sortable';
+import { CSS } from '@dnd-kit/utilities';
+
+import { useAppSelector } from '@/hooks/useAppSelector';
+import { useAppDispatch } from '@/hooks/useAppDispatch';
+import {
+  addPhaseOption,
+  fetchPhasesByProjectId,
+  updatePhaseOrder,
+  updatePhaseListOrder,
+  updateProjectPhaseLabel,
+  updatePhaseName,
+  deletePhaseOption,
+  updatePhaseColor,
+} from '@/features/projects/singleProject/phase/phases.slice';
+import { ITaskPhase } from '@/types/tasks/taskPhase.types';
+import { Modal as AntModal } from 'antd';
+import { fetchTasksV3 } from '@/features/task-management/task-management.slice';
+import { fetchEnhancedKanbanGroups } from '@/features/enhanced-kanban/enhanced-kanban.slice';
+import { PhaseColorCodes } from '@/shared/constants';
+import './ManagePhaseModal.css';
+
+const { Title, Text } = Typography;
+
+interface ManagePhaseModalProps {
+  open: boolean;
+  onClose: () => void;
+  projectId?: string;
+}
+
+interface PhaseItemProps {
+  phase: ITaskPhase;
+  onRename: (id: string, name: string) => void;
+  onDelete: (id: string) => void;
+  onColorChange: (id: string, color: string) => void;
+  isDarkMode: boolean;
+}
+
+// Sortable Phase Item Component
+const SortablePhaseItem: React.FC<PhaseItemProps & { id: string }> = ({
+  id,
+  phase,
+  onRename,
+  onDelete,
+  onColorChange,
+  isDarkMode,
+}) => {
+  const [isEditing, setIsEditing] = useState(false);
+  const [editName, setEditName] = useState(phase.name || '');
+  const [color, setColor] = useState(phase.color_code || PhaseColorCodes[0]);
+  const inputRef = useRef<any>(null);
+
+  const {
+    attributes,
+    listeners,
+    setNodeRef,
+    transform,
+    transition,
+    isDragging,
+  } = useSortable({ id });
+
+  const style = {
+    transform: CSS.Transform.toString(transform),
+    transition,
+    opacity: isDragging ? 0.5 : 1,
+  };
+
+  const handleSave = useCallback(() => {
+    if (editName.trim() && editName.trim() !== phase.name) {
+      onRename(id, editName.trim());
+    }
+    setIsEditing(false);
+  }, [editName, id, onRename, phase.name]);
+
+  const handleCancel = useCallback(() => {
+    setEditName(phase.name || '');
+    setIsEditing(false);
+  }, [phase.name]);
+
+  const handleKeyDown = useCallback((e: React.KeyboardEvent) => {
+    if (e.key === 'Enter') {
+      handleSave();
+    } else if (e.key === 'Escape') {
+      handleCancel();
+    }
+  }, [handleSave, handleCancel]);
+
+  const handleColorChangeComplete = useCallback(() => {
+    if (color !== phase.color_code) {
+      onColorChange(id, color);
+    }
+  }, [color, id, onColorChange, phase.color_code]);
+
+  useEffect(() => {
+    if (isEditing && inputRef.current) {
+      inputRef.current.focus();
+      inputRef.current.select();
+    }
+  }, [isEditing]);
+
+  useEffect(() => {
+    setColor(phase.color_code || PhaseColorCodes[0]);
+  }, [phase.color_code]);
+
+    return (
+    <div
+      ref={setNodeRef}
+      style={style}
+      className={`p-3 rounded-md border transition-all duration-200 ${
+        isDarkMode
+          ? 'bg-gray-800 border-gray-700 hover:bg-gray-750'
+          : 'bg-white border-gray-200 hover:bg-gray-50 shadow-sm'
+      }`}
+    >
+      {/* Header Row - Drag Handle, Phase Name, Actions */}
+      <div className="flex items-center gap-2 mb-2">
+        {/* Drag Handle */}
+        <div
+          {...attributes}
+          {...listeners}
+          className={`cursor-grab active:cursor-grabbing p-1 rounded transition-colors ${
+            isDarkMode 
+              ? 'text-gray-400 hover:text-gray-300 hover:bg-gray-700' 
+              : 'text-gray-500 hover:text-gray-600 hover:bg-gray-100'
+          }`}
+        >
+          <HolderOutlined />
+        </div>
+
+        {/* Phase Name */}
+        <div className="flex-1">
+          {isEditing ? (
+            <Input
+              ref={inputRef}
+              value={editName}
+              onChange={(e) => setEditName(e.target.value)}
+              onBlur={handleSave}
+              onKeyDown={handleKeyDown}
+              className="font-medium"
+              placeholder="Enter phase name"
+            />
+          ) : (
+            <Text
+              className={`text-sm font-medium cursor-pointer transition-colors ${
+                isDarkMode ? 'text-gray-100 hover:text-white' : 'text-gray-900 hover:text-gray-700'
+              }`}
+              onClick={() => setIsEditing(true)}
+            >
+              {phase.name}
+            </Text>
+          )}
+        </div>
+
+        {/* Actions */}
+        <Space size={4}>
+          <Button
+            type="text"
+            size="small"
+            onClick={() => setIsEditing(true)}
+            className={`text-xs ${isDarkMode ? 'text-gray-400 hover:text-gray-300' : 'text-gray-500 hover:text-gray-600'} hover:bg-transparent`}
+          >
+            Rename
+          </Button>
+          <Button
+            type="text"
+            size="small"
+            danger
+            onClick={() => onDelete(id)}
+            className="text-xs text-red-500 hover:text-red-400 hover:bg-red-50 dark:hover:bg-red-900/20"
+          >
+            Delete
+          </Button>
+        </Space>
+      </div>
+
+      {/* Color Row */}
+      <div className="flex items-center gap-1.5">
+        <Text 
+          className={`text-xs font-medium ${
+            isDarkMode ? 'text-gray-400' : 'text-gray-600'
+          }`}
+        >
+          Color:
+        </Text>
+        <ColorPicker
+          value={color}
+          onChange={(value) => setColor(value.toHexString())}
+          onChangeComplete={handleColorChangeComplete}
+          size="small"
+          className="phase-color-picker"
+        />
+        <div 
+          className="w-3 h-3 rounded-full border ml-1 transition-all duration-200"
+          style={{
+            backgroundColor: color,
+            borderColor: isDarkMode ? '#374151' : '#e5e7eb',
+          }}
+        />
+      </div>
+    </div>
+  );
+};
+
+const ManagePhaseModal: React.FC<ManagePhaseModalProps> = ({
+  open,
+  onClose,
+  projectId,
+}) => {
+  const { t } = useTranslation('phases-drawer');
+  const dispatch = useAppDispatch();
+  
+  // Redux state
+  const isDarkMode = useAppSelector(state => state.themeReducer?.mode === 'dark');
+  const currentProjectId = useAppSelector(state => state.projectReducer.projectId);
+  const { project } = useAppSelector(state => state.projectReducer);
+  const { phaseList, loadingPhases } = useAppSelector(state => state.phaseReducer);
+  
+  const [phaseName, setPhaseName] = useState<string>(project?.phase_label || '');
+  const [initialPhaseName, setInitialPhaseName] = useState<string>(project?.phase_label || '');
+  const [sorting, setSorting] = useState(false);
+  const [isSaving, setIsSaving] = useState(false);
+
+  const finalProjectId = projectId || currentProjectId;
+
+  // DnD sensors
+  const sensors = useSensors(
+    useSensor(PointerSensor, {
+      activationConstraint: {
+        distance: 8,
+      },
+    })
+  );
+
+  useEffect(() => {
+    if (open && finalProjectId) {
+      dispatch(fetchPhasesByProjectId(finalProjectId));
+      setPhaseName(project?.phase_label || '');
+      setInitialPhaseName(project?.phase_label || '');
+    }
+  }, [open, finalProjectId, project?.phase_label, dispatch]);
+
+  const refreshTasks = useCallback(async () => {
+    if (finalProjectId) {
+      await dispatch(fetchTasksV3(finalProjectId));
+      await dispatch(fetchEnhancedKanbanGroups(finalProjectId));
+    }
+  }, [finalProjectId, dispatch]);
+
+  const handleDragEnd = useCallback(async (event: DragEndEvent) => {
+    if (!finalProjectId) return;
+    const { active, over } = event;
+
+    if (over && active.id !== over.id) {
+      const oldIndex = phaseList.findIndex(item => item.id === active.id);
+      const newIndex = phaseList.findIndex(item => item.id === over.id);
+
+      const newPhaseList = [...phaseList];
+      const [movedItem] = newPhaseList.splice(oldIndex, 1);
+      newPhaseList.splice(newIndex, 0, movedItem);
+
+      try {
+        setSorting(true);
+        dispatch(updatePhaseListOrder(newPhaseList));
+
+        const body = {
+          from_index: oldIndex,
+          to_index: newIndex,
+          phases: newPhaseList,
+          project_id: finalProjectId,
+        };
+
+        await dispatch(updatePhaseOrder({ projectId: finalProjectId, body })).unwrap();
+        await refreshTasks();
+      } catch (error) {
+        dispatch(fetchPhasesByProjectId(finalProjectId));
+        console.error('Error updating phase order', error);
+      } finally {
+        setSorting(false);
+      }
+    }
+  }, [finalProjectId, phaseList, dispatch, refreshTasks]);
+
+  const handleAddPhase = useCallback(async () => {
+    if (!finalProjectId) return;
+
+    try {
+      await dispatch(addPhaseOption({ projectId: finalProjectId }));
+      await dispatch(fetchPhasesByProjectId(finalProjectId));
+      await refreshTasks();
+    } catch (error) {
+      console.error('Error adding phase:', error);
+    }
+  }, [finalProjectId, dispatch, refreshTasks]);
+
+  const handleRenamePhase = useCallback(async (id: string, name: string) => {
+    if (!finalProjectId) return;
+    
+    try {
+      const phase = phaseList.find(p => p.id === id);
+      if (!phase) return;
+
+      const updatedPhase = { ...phase, name: name.trim() };
+      const response = await dispatch(
+        updatePhaseName({
+          phaseId: id,
+          phase: updatedPhase,
+          projectId: finalProjectId,
+        })
+      ).unwrap();
+
+      if (response.done) {
+        dispatch(fetchPhasesByProjectId(finalProjectId));
+        await refreshTasks();
+      }
+    } catch (error) {
+      console.error('Error renaming phase:', error);
+    }
+  }, [finalProjectId, phaseList, dispatch, refreshTasks]);
+
+  const handleDeletePhase = useCallback(async (id: string) => {
+    if (!finalProjectId) return;
+    
+    AntModal.confirm({
+      title: 'Delete Phase',
+      content: 'Are you sure you want to delete this phase? This action cannot be undone.',
+      onOk: async () => {
+        try {
+          const response = await dispatch(
+            deletePhaseOption({ phaseOptionId: id, projectId: finalProjectId })
+          ).unwrap();
+
+          if (response.done) {
+            dispatch(fetchPhasesByProjectId(finalProjectId));
+            await refreshTasks();
+          }
+        } catch (error) {
+          console.error('Error deleting phase:', error);
+        }
+      },
+    });
+  }, [finalProjectId, dispatch, refreshTasks]);
+
+  const handleColorChange = useCallback(async (id: string, color: string) => {
+    if (!finalProjectId) return;
+    
+    try {
+      const phase = phaseList.find(p => p.id === id);
+      if (!phase) return;
+
+      const updatedPhase = { ...phase, color_code: color };
+      const response = await dispatch(
+        updatePhaseColor({ projectId: finalProjectId, body: updatedPhase })
+      ).unwrap();
+
+      if (response.done) {
+        dispatch(fetchPhasesByProjectId(finalProjectId));
+        await refreshTasks();
+      }
+    } catch (error) {
+      console.error('Error changing phase color:', error);
+    }
+  }, [finalProjectId, phaseList, dispatch, refreshTasks]);
+
+  const handlePhaseNameBlur = useCallback(async () => {
+    if (!finalProjectId || phaseName === initialPhaseName) return;
+    
+    try {
+      setIsSaving(true);
+      const res = await dispatch(
+        updateProjectPhaseLabel({ projectId: finalProjectId, phaseLabel: phaseName })
+      ).unwrap();
+      
+      if (res.done) {
+        setInitialPhaseName(phaseName);
+        await refreshTasks();
+      }
+    } catch (error) {
+      console.error('Error updating phase name:', error);
+    } finally {
+      setIsSaving(false);
+    }
+  }, [finalProjectId, phaseName, initialPhaseName, dispatch, refreshTasks]);
+
+  const handleClose = useCallback(() => {
+    onClose();
+  }, [onClose]);
+
+  return (
+    <Modal
+      title={
+        <Title level={4} className={isDarkMode ? 'text-gray-200' : 'text-gray-800'}>
+          {t('configurePhases')}
+        </Title>
+      }
+      open={open}
+      onCancel={handleClose}
+      width={600}
+      style={{ top: 20 }}
+      bodyStyle={{
+        maxHeight: 'calc(100vh - 200px)',
+        overflowY: 'auto',
+        padding: '24px',
+      }}
+      footer={
+        <Flex justify="flex-end">
+          <Button onClick={handleClose}>
+            Close
+          </Button>
+        </Flex>
+      }
+      className={isDarkMode ? 'dark-modal' : ''}
+      loading={loadingPhases || sorting}
+    >
+      <div className="space-y-4">
+        {/* Phase Label Configuration */}
+        <div className={`p-3 rounded-md border ${
+          isDarkMode 
+            ? 'bg-gray-800/30 border-gray-700' 
+            : 'bg-blue-50/50 border-blue-200'
+        }`}>
+          <div className="space-y-2">
+            <Text className={`text-xs font-medium ${
+              isDarkMode ? 'text-gray-300' : 'text-gray-700'
+            }`}>
+              {t('phaseLabel')}
+            </Text>
+            <Input
+              placeholder={t('enterPhaseName')}
+              value={phaseName}
+              onChange={e => setPhaseName(e.currentTarget.value)}
+              onPressEnter={handlePhaseNameBlur}
+              onBlur={handlePhaseNameBlur}
+              disabled={isSaving}
+              size="small"
+            />
+          </div>
+        </div>
+
+        <Divider className={isDarkMode ? 'border-gray-700' : 'border-gray-300'} />
+
+        {/* Phase Options */}
+        <div className="space-y-4">
+          <div className={`p-2.5 rounded-md ${
+            isDarkMode ? 'bg-gray-800/50' : 'bg-purple-50'
+          }`}>
+            <Text 
+              type="secondary" 
+              className={`text-xs ${
+                isDarkMode ? 'text-gray-400' : 'text-purple-600'
+              }`}
+            >
+              🎨 Drag phases to reorder them. Each phase can have a custom color.
+            </Text>
+          </div>
+
+          {/* Add New Phase */}
+          <div className={`p-3 rounded-md border-2 border-dashed transition-colors ${
+            isDarkMode 
+              ? 'border-gray-600 bg-gray-800/50 hover:border-gray-500' 
+              : 'border-gray-300 bg-gray-50/50 hover:border-gray-400'
+          }`}>
+            <div className="flex gap-2">
+              <Text className={`text-xs font-medium flex-shrink-0 self-center ${
+                isDarkMode ? 'text-gray-300' : 'text-gray-700'
+              }`}>
+                {t('phaseOptions')}:
+              </Text>
+              <Button 
+                type="primary" 
+                icon={<PlusOutlined />} 
+                onClick={handleAddPhase}
+                disabled={loadingPhases}
+                size="small"
+                className="ml-auto"
+              >
+                {t('addOption')}
+              </Button>
+            </div>
+          </div>
+
+          {/* Phase List with Drag & Drop */}
+          <DndContext sensors={sensors} onDragEnd={handleDragEnd}>
+            <SortableContext
+              items={phaseList.map(phase => phase.id)}
+              strategy={verticalListSortingStrategy}
+            >
+              <div className="space-y-2">
+                {phaseList.map((phase) => (
+                  <SortablePhaseItem
+                    key={phase.id}
+                    id={phase.id}
+                    phase={phase}
+                    onRename={handleRenamePhase}
+                    onDelete={handleDeletePhase}
+                    onColorChange={handleColorChange}
+                    isDarkMode={isDarkMode}
+                  />
+                ))}
+              </div>
+            </SortableContext>
+          </DndContext>
+
+          {phaseList.length === 0 && (
+            <div className={`text-center py-8 ${isDarkMode ? 'text-gray-400' : 'text-gray-500'}`}>
+              <Text>No phases found. Add your first phase above.</Text>
+            </div>
+          )}
+        </div>
+      </div>
+    </Modal>
+  );
+};
+
+export default ManagePhaseModal; 
\ No newline at end of file
diff --git a/worklenz-frontend/src/components/task-management/ManageStatusModal.css b/worklenz-frontend/src/components/task-management/ManageStatusModal.css
new file mode 100644
index 00000000..69ee4379
--- /dev/null
+++ b/worklenz-frontend/src/components/task-management/ManageStatusModal.css
@@ -0,0 +1,249 @@
+/* ManageStatusModal.css */
+
+/* Dark mode modal styling */
+.dark-modal .ant-modal-content {
+  background-color: #1f1f1f;
+  border: 1px solid #303030;
+}
+
+.dark-modal .ant-modal-header {
+  background-color: #1f1f1f;
+  border-bottom: 1px solid #303030;
+}
+
+.dark-modal .ant-modal-body {
+  background-color: #1f1f1f;
+}
+
+.dark-modal .ant-modal-footer {
+  background-color: #1f1f1f;
+  border-top: 1px solid #303030;
+}
+
+.dark-modal .ant-form-item-label > label {
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-input,
+.dark-modal .ant-select-selector {
+  background-color: #141414;
+  border-color: #303030;
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-select-dropdown {
+  background-color: #1f1f1f;
+  border-color: #303030;
+}
+
+.dark-modal .ant-select-item {
+  color: #d9d9d9;
+}
+
+.dark-modal .ant-select-item:hover {
+  background-color: #262626;
+}
+
+.dark-modal .ant-select-item-option-selected {
+  background-color: #1890ff;
+  color: white;
+}
+
+/* Category select styling */
+.category-select .ant-select-selector {
+  height: 28px !important;
+  min-height: 28px !important;
+  border-radius: 6px !important;
+  transition: all 0.2s ease !important;
+}
+
+.category-select:hover .ant-select-selector {
+  border-color: #40a9ff !important;
+}
+
+.dark-modal .category-select .ant-select-selector {
+  background-color: #141414;
+  border-color: #303030;
+  color: #d9d9d9;
+}
+
+.dark-modal .category-select:hover .ant-select-selector {
+  border-color: #40a9ff !important;
+  background-color: #1a1a1a;
+}
+
+/* Improved drag handle */
+.drag-handle {
+  cursor: grab;
+  opacity: 0.7;
+  transition: all 0.2s ease;
+  border-radius: 6px;
+}
+
+.drag-handle:hover {
+  opacity: 1;
+  background-color: rgba(0, 0, 0, 0.05);
+}
+
+.dark-modal .drag-handle:hover {
+  background-color: rgba(255, 255, 255, 0.1);
+}
+
+.drag-handle:active {
+  cursor: grabbing;
+  transform: scale(0.95);
+}
+
+/* Status color dot enhancement */
+.status-color-dot {
+  transition: all 0.2s ease;
+  box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);
+}
+
+.status-color-dot:hover {
+  transform: scale(1.1);
+  box-shadow: 0 4px 8px rgba(0, 0, 0, 0.15);
+}
+
+.dark-modal .status-color-dot {
+  box-shadow: 0 2px 4px rgba(0, 0, 0, 0.3);
+}
+
+.dark-modal .status-color-dot:hover {
+  box-shadow: 0 4px 8px rgba(0, 0, 0, 0.4);
+}
+
+.dark-modal .ant-input::placeholder {
+  color: #8c8c8c;
+}
+
+.dark-modal .ant-btn-primary {
+  background-color: #1890ff;
+  border-color: #1890ff;
+}
+
+.dark-modal .ant-btn-primary:hover {
+  background-color: #40a9ff;
+  border-color: #40a9ff;
+}
+
+.dark-modal .ant-btn-text:hover {
+  background-color: #262626;
+}
+
+/* Status management section styling */
+.status-item {
+  transition: all 0.2s ease;
+}
+
+.status-item:hover {
+  transform: translateY(-1px);
+  box-shadow: 0 6px 16px rgba(0, 0, 0, 0.1);
+}
+
+.dark-modal .status-item:hover {
+  box-shadow: 0 6px 16px rgba(0, 0, 0, 0.4);
+}
+
+/* Enhanced status card styling */
+.status-card {
+  border-radius: 8px;
+  transition: all 0.2s cubic-bezier(0.4, 0, 0.2, 1);
+}
+
+.status-card:hover {
+  transform: translateY(-1px);
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.12);
+}
+
+.dark-modal .status-card:hover {
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.4);
+}
+
+/* Drag handle styling */
+.drag-handle {
+  cursor: grab;
+  opacity: 0.6;
+  transition: opacity 0.2s ease;
+}
+
+.drag-handle:hover {
+  opacity: 1;
+}
+
+.drag-handle:active {
+  cursor: grabbing;
+}
+
+/* Status color indicator */
+.status-color {
+  box-shadow: 0 0 0 1px rgba(0, 0, 0, 0.1);
+}
+
+.dark-modal .status-color {
+  box-shadow: 0 0 0 1px rgba(255, 255, 255, 0.1);
+}
+
+/* Sortable item styling */
+.sortable-status-item {
+  transition: transform 0.2s ease, opacity 0.2s ease;
+}
+
+.sortable-status-item.is-dragging {
+  transform: scale(1.02);
+  z-index: 999;
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.2);
+}
+
+.dark-modal .sortable-status-item.is-dragging {
+  box-shadow: 0 8px 25px rgba(0, 0, 0, 0.4);
+}
+
+/* Responsive design */
+@media (max-width: 768px) {
+  .dark-modal .ant-modal {
+    width: 95% !important;
+    margin: 10px;
+  }
+  
+  .dark-modal .ant-modal-body {
+    padding: 16px;
+  }
+  
+  .status-item {
+    padding: 12px;
+  }
+}
+
+/* Accessibility improvements */
+.drag-handle:focus {
+  outline: 2px solid #1890ff;
+  outline-offset: 2px;
+}
+
+.dark-modal .drag-handle:focus {
+  outline-color: #40a9ff;
+}
+
+/* Animation for status creation */
+.status-item-enter {
+  opacity: 0;
+  transform: translateY(-10px);
+}
+
+.status-item-enter-active {
+  opacity: 1;
+  transform: translateY(0);
+  transition: opacity 0.3s ease, transform 0.3s ease;
+}
+
+.status-item-exit {
+  opacity: 1;
+  transform: translateY(0);
+}
+
+.status-item-exit-active {
+  opacity: 0;
+  transform: translateY(-10px);
+  transition: opacity 0.3s ease, transform 0.3s ease;
+} 
\ No newline at end of file
diff --git a/worklenz-frontend/src/components/task-management/ManageStatusModal.tsx b/worklenz-frontend/src/components/task-management/ManageStatusModal.tsx
new file mode 100644
index 00000000..054ecc88
--- /dev/null
+++ b/worklenz-frontend/src/components/task-management/ManageStatusModal.tsx
@@ -0,0 +1,469 @@
+import React, { useState, useCallback, useRef, useEffect } from 'react';
+import { Modal, Form, Input, Button, Space, Divider, Typography, Flex, Select } from 'antd';
+import { PlusOutlined, HolderOutlined } from '@ant-design/icons';
+import { useTranslation } from 'react-i18next';
+import { DndContext, DragEndEvent, PointerSensor, useSensor, useSensors } from '@dnd-kit/core';
+import { SortableContext, useSortable, verticalListSortingStrategy } from '@dnd-kit/sortable';
+import { CSS } from '@dnd-kit/utilities';
+
+import { useAppSelector } from '@/hooks/useAppSelector';
+import { useAppDispatch } from '@/hooks/useAppDispatch';
+import { createStatus, fetchStatuses, fetchStatusesCategories } from '@/features/taskAttributes/taskStatusSlice';
+import { statusApiService } from '@/api/taskAttributes/status/status.api.service';
+import { ITaskStatusUpdateModel } from '@/types/tasks/task-status-update-model.types';
+import { Modal as AntModal } from 'antd';
+import { fetchTasksV3 } from '@/features/task-management/task-management.slice';
+import { fetchEnhancedKanbanGroups } from '@/features/enhanced-kanban/enhanced-kanban.slice';
+import './ManageStatusModal.css';
+
+const { Title, Text } = Typography;
+
+interface ManageStatusModalProps {
+  open: boolean;
+  onClose: () => void;
+  projectId?: string;
+}
+
+interface StatusItemProps {
+  status: any;
+  onRename: (id: string, name: string) => void;
+  onDelete: (id: string) => void;
+  onCategoryChange: (id: string, categoryId: string) => void;
+  isDarkMode: boolean;
+  categories: any[];
+}
+
+// Sortable Status Item Component
+const SortableStatusItem: React.FC<StatusItemProps & { id: string }> = ({
+  id,
+  status,
+  onRename,
+  onDelete,
+  onCategoryChange,
+  isDarkMode,
+  categories,
+}) => {
+  const [isEditing, setIsEditing] = useState(false);
+  const [editName, setEditName] = useState(status.name || '');
+  const inputRef = useRef<any>(null);
+
+  const {
+    attributes,
+    listeners,
+    setNodeRef,
+    transform,
+    transition,
+    isDragging,
+  } = useSortable({ id });
+
+  const style = {
+    transform: CSS.Transform.toString(transform),
+    transition,
+    opacity: isDragging ? 0.5 : 1,
+  };
+
+  const handleSave = useCallback(() => {
+    if (editName.trim() && editName.trim() !== status.name) {
+      onRename(id, editName.trim());
+    }
+    setIsEditing(false);
+  }, [editName, id, onRename, status.name]);
+
+  const handleCancel = useCallback(() => {
+    setEditName(status.name || '');
+    setIsEditing(false);
+  }, [status.name]);
+
+  const handleKeyDown = useCallback((e: React.KeyboardEvent) => {
+    if (e.key === 'Enter') {
+      handleSave();
+    } else if (e.key === 'Escape') {
+      handleCancel();
+    }
+  }, [handleSave, handleCancel]);
+
+  useEffect(() => {
+    if (isEditing && inputRef.current) {
+      inputRef.current.focus();
+      inputRef.current.select();
+    }
+  }, [isEditing]);
+
+    return (
+    <div
+      ref={setNodeRef}
+      style={style}
+      className={`p-3 rounded-md border transition-all duration-200 ${
+        isDarkMode
+          ? 'bg-gray-800 border-gray-700 hover:bg-gray-750'
+          : 'bg-white border-gray-200 hover:bg-gray-50 shadow-sm'
+      }`}
+    >
+      {/* Header Row - Drag Handle, Color, Name, Actions */}
+      <div className="flex items-center gap-2 mb-2">
+        {/* Drag Handle */}
+        <div
+          {...attributes}
+          {...listeners}
+          className={`cursor-grab active:cursor-grabbing p-1 rounded transition-colors ${
+            isDarkMode 
+              ? 'text-gray-400 hover:text-gray-300 hover:bg-gray-700' 
+              : 'text-gray-500 hover:text-gray-600 hover:bg-gray-100'
+          }`}
+        >
+          <HolderOutlined />
+        </div>
+
+        {/* Status Color */}
+        <div
+          className="w-4 h-4 rounded-full border shadow-sm"
+          style={{
+            backgroundColor: status.color_code || '#gray',
+            borderColor: isDarkMode ? '#374151' : '#e5e7eb',
+          }}
+        />
+
+        {/* Status Name */}
+        <div className="flex-1">
+          {isEditing ? (
+            <Input
+              ref={inputRef}
+              value={editName}
+              onChange={(e) => setEditName(e.target.value)}
+              onBlur={handleSave}
+              onKeyDown={handleKeyDown}
+              className="font-medium"
+              placeholder="Enter status name"
+            />
+          ) : (
+            <Text
+              className={`text-sm font-medium cursor-pointer transition-colors ${
+                isDarkMode ? 'text-gray-100 hover:text-white' : 'text-gray-900 hover:text-gray-700'
+              }`}
+              onClick={() => setIsEditing(true)}
+            >
+              {status.name}
+            </Text>
+          )}
+        </div>
+
+        {/* Actions */}
+        <Space size={4}>
+          <Button
+            type="text"
+            size="small"
+            onClick={() => setIsEditing(true)}
+            className={`text-xs ${isDarkMode ? 'text-gray-400 hover:text-gray-300' : 'text-gray-500 hover:text-gray-600'} hover:bg-transparent`}
+          >
+            Rename
+          </Button>
+          <Button
+            type="text"
+            size="small"
+            danger
+            onClick={() => onDelete(id)}
+            className="text-xs text-red-500 hover:text-red-400 hover:bg-red-50 dark:hover:bg-red-900/20"
+          >
+            Delete
+          </Button>
+        </Space>
+      </div>
+
+      {/* Category Row */}
+      <div className="flex items-center gap-1.5">
+        <Text 
+          className={`text-xs font-medium ${
+            isDarkMode ? 'text-gray-400' : 'text-gray-600'
+          }`}
+        >
+          Category:
+        </Text>
+        <Select
+          value={status.category_id}
+          onChange={(value) => onCategoryChange(id, value)}
+          size="small"
+          style={{ width: 120 }}
+          className="category-select"
+          placeholder="Select category"
+        >
+          {categories.map(category => (
+            <Select.Option key={category.id} value={category.id}>
+              {category.name}
+            </Select.Option>
+          ))}
+        </Select>
+      </div>
+    </div>
+  );
+};
+
+const ManageStatusModal: React.FC<ManageStatusModalProps> = ({
+  open,
+  onClose,
+  projectId,
+}) => {
+  const { t } = useTranslation('task-list-filters');
+  const dispatch = useAppDispatch();
+  
+  // Redux state
+  const isDarkMode = useAppSelector(state => state.themeReducer?.mode === 'dark');
+  const currentProjectId = useAppSelector(state => state.projectReducer.projectId);
+  const { status: statuses } = useAppSelector(state => state.taskStatusReducer);
+  
+  const [localStatuses, setLocalStatuses] = useState(statuses);
+  const [newStatusName, setNewStatusName] = useState('');
+  const [statusCategories, setStatusCategories] = useState<any[]>([]);
+
+  const finalProjectId = projectId || currentProjectId;
+
+  // DnD sensors
+  const sensors = useSensors(
+    useSensor(PointerSensor, {
+      activationConstraint: {
+        distance: 8,
+      },
+    })
+  );
+
+  useEffect(() => {
+    setLocalStatuses(statuses);
+  }, [statuses]);
+
+  useEffect(() => {
+    if (open && finalProjectId) {
+      dispatch(fetchStatuses(finalProjectId));
+      // Fetch status categories
+      dispatch(fetchStatusesCategories()).then((result: any) => {
+        if (result.payload && Array.isArray(result.payload)) {
+          setStatusCategories(result.payload);
+        }
+      }).catch(() => {
+        setStatusCategories([]);
+      });
+    }
+  }, [open, finalProjectId, dispatch]);
+
+  const handleDragEnd = useCallback((event: DragEndEvent) => {
+    const { active, over } = event;
+
+    if (!over || active.id === over.id || !finalProjectId) {
+      return;
+    }
+
+    setLocalStatuses((items) => {
+      const oldIndex = items.findIndex((item) => item.id === active.id);
+      const newIndex = items.findIndex((item) => item.id === over.id);
+
+      if (oldIndex === -1 || newIndex === -1) return items;
+
+      const newItems = [...items];
+      const [movedItem] = newItems.splice(oldIndex, 1);
+      newItems.splice(newIndex, 0, movedItem);
+
+      // Update status order via API (fire and forget)
+      const columnOrder = newItems.map(item => item.id).filter(Boolean) as string[];
+      const requestBody = { status_order: columnOrder };
+      statusApiService.updateStatusOrder(requestBody, finalProjectId).then(() => {
+        // Refresh enhanced kanban after status order change
+        dispatch(fetchEnhancedKanbanGroups(finalProjectId));
+      }).catch(error => {
+        console.error('Error updating status order:', error);
+      });
+
+      return newItems;
+    });
+  }, [finalProjectId]);
+
+  const handleCreateStatus = useCallback(async () => {
+    if (!newStatusName.trim() || !finalProjectId) return;
+
+    try {
+      const statusCategories = await dispatch(fetchStatusesCategories()).unwrap();
+      const defaultCategory = statusCategories[0]?.id;
+      
+      if (!defaultCategory) {
+        console.error('No status categories found');
+        return;
+      }
+
+      const body = {
+        name: newStatusName.trim(),
+        category_id: defaultCategory,
+        project_id: finalProjectId,
+      };
+
+      const res = await dispatch(createStatus({ body, currentProjectId: finalProjectId })).unwrap();
+      if (res.done) {
+        setNewStatusName('');
+        dispatch(fetchStatuses(finalProjectId));
+        dispatch(fetchTasksV3(finalProjectId));
+        dispatch(fetchEnhancedKanbanGroups(finalProjectId));
+      }
+    } catch (error) {
+      console.error('Error creating status:', error);
+    }
+  }, [newStatusName, finalProjectId, dispatch]);
+
+  const handleRenameStatus = useCallback(async (id: string, name: string) => {
+    if (!finalProjectId) return;
+    
+    try {
+      const body: ITaskStatusUpdateModel = {
+        name: name.trim(),
+        project_id: finalProjectId,
+      };
+      
+      await statusApiService.updateNameOfStatus(id, body, finalProjectId);
+      dispatch(fetchStatuses(finalProjectId));
+      dispatch(fetchTasksV3(finalProjectId));
+      dispatch(fetchEnhancedKanbanGroups(finalProjectId));
+    } catch (error) {
+      console.error('Error renaming status:', error);
+    }
+  }, [finalProjectId, dispatch]);
+
+  const handleDeleteStatus = useCallback(async (id: string) => {
+    if (!finalProjectId) return;
+    
+    AntModal.confirm({
+      title: 'Delete Status',
+      content: 'Are you sure you want to delete this status? This action cannot be undone.',
+      onOk: async () => {
+        try {
+          const replacingStatusId = localStatuses.find(s => s.id !== id)?.id || '';
+          await statusApiService.deleteStatus(id, finalProjectId, replacingStatusId);
+          dispatch(fetchStatuses(finalProjectId));
+          dispatch(fetchTasksV3(finalProjectId));
+          dispatch(fetchEnhancedKanbanGroups(finalProjectId));
+        } catch (error) {
+          console.error('Error deleting status:', error);
+        }
+      },
+    });
+  }, [localStatuses, finalProjectId, dispatch]);
+
+  const handleCategoryChange = useCallback(async (id: string, categoryId: string) => {
+    if (!finalProjectId) return;
+    
+    try {
+      const body: ITaskStatusUpdateModel = {
+        category_id: categoryId,
+        project_id: finalProjectId,
+      };
+      
+      await statusApiService.updateNameOfStatus(id, body, finalProjectId);
+      dispatch(fetchStatuses(finalProjectId));
+      dispatch(fetchTasksV3(finalProjectId));
+      dispatch(fetchEnhancedKanbanGroups(finalProjectId));
+    } catch (error) {
+      console.error('Error changing status category:', error);
+    }
+  }, [finalProjectId, dispatch]);
+
+  const handleClose = useCallback(() => {
+    setNewStatusName('');
+    onClose();
+  }, [onClose]);
+
+  return (
+    <Modal
+      title={
+        <Title level={4} className={isDarkMode ? 'text-gray-200' : 'text-gray-800'}>
+          {t('manageStatuses')}
+        </Title>
+      }
+      open={open}
+      onCancel={handleClose}
+      width={600}
+      style={{ top: 20 }}
+      bodyStyle={{
+        maxHeight: 'calc(100vh - 200px)',
+        overflowY: 'auto',
+        padding: '24px',
+      }}
+      footer={
+        <Flex justify="flex-end">
+          <Button onClick={handleClose}>
+            Close
+          </Button>
+        </Flex>
+      }
+      className={isDarkMode ? 'dark-modal' : ''}
+    >
+      <div className="space-y-4">
+        <div className={`p-2.5 rounded-md ${
+          isDarkMode ? 'bg-gray-800/50' : 'bg-blue-50'
+        }`}>
+          <Text 
+            type="secondary" 
+            className={`text-xs ${
+              isDarkMode ? 'text-gray-400' : 'text-blue-600'
+            }`}
+          >
+            💡 Drag statuses to reorder them. Each status can have a different category.
+          </Text>
+        </div>
+
+        {/* Create New Status */}
+        <div className={`p-3 rounded-md border-2 border-dashed transition-colors ${
+          isDarkMode 
+            ? 'border-gray-600 bg-gray-800/50 hover:border-gray-500' 
+            : 'border-gray-300 bg-gray-50/50 hover:border-gray-400'
+        }`}>
+          <div className="flex gap-2">
+            <Input
+              placeholder="Enter new status name..."
+              value={newStatusName}
+              onChange={(e) => setNewStatusName(e.target.value)}
+              onPressEnter={handleCreateStatus}
+              className="flex-1"
+              size="small"
+            />
+            <Button
+              type="primary"
+              icon={<PlusOutlined />}
+              onClick={handleCreateStatus}
+              disabled={!newStatusName.trim()}
+              size="small"
+            >
+              Add Status
+            </Button>
+          </div>
+        </div>
+
+        <Divider className={isDarkMode ? 'border-gray-700' : 'border-gray-300'} />
+
+        {/* Status List with Drag & Drop */}
+        <DndContext sensors={sensors} onDragEnd={handleDragEnd}>
+          <SortableContext
+            items={localStatuses.filter(status => status.id).map(status => status.id as string)}
+            strategy={verticalListSortingStrategy}
+          >
+            <div className="space-y-2">
+              {localStatuses.filter(status => status.id).map((status) => (
+                <SortableStatusItem
+                  key={status.id}
+                  id={status.id!}
+                  status={status}
+                  onRename={handleRenameStatus}
+                  onDelete={handleDeleteStatus}
+                  onCategoryChange={handleCategoryChange}
+                  isDarkMode={isDarkMode}
+                  categories={statusCategories}
+                />
+              ))}
+            </div>
+          </SortableContext>
+        </DndContext>
+
+        {localStatuses.length === 0 && (
+          <div className={`text-center py-8 ${isDarkMode ? 'text-gray-400' : 'text-gray-500'}`}>
+            <Text>No statuses found. Create your first status above.</Text>
+          </div>
+        )}
+      </div>
+    </Modal>
+  );
+};
+
+export default ManageStatusModal; 
\ No newline at end of file
diff --git a/worklenz-frontend/src/components/task-management/improved-task-filters.tsx b/worklenz-frontend/src/components/task-management/improved-task-filters.tsx
index 6e6669c0..c913d6e9 100644
--- a/worklenz-frontend/src/components/task-management/improved-task-filters.tsx
+++ b/worklenz-frontend/src/components/task-management/improved-task-filters.tsx
@@ -73,9 +73,9 @@ import {
   setBoardLabels,
 } from '@/features/board/board-slice';
 
-// Import ConfigPhaseButton and CreateStatusButton components
-import ConfigPhaseButton from '@/features/projects/singleProject/phase/ConfigPhaseButton';
-import CreateStatusButton from '@/components/project-task-filters/create-status-button/create-status-button';
+// Import modal components
+import ManageStatusModal from '@/components/task-management/ManageStatusModal';
+import ManagePhaseModal from '@/components/task-management/ManagePhaseModal';
 import { useAuthService } from '@/hooks/useAuth';
 import useIsProjectManager from '@/hooks/useIsProjectManager';
 
@@ -367,6 +367,8 @@ const FilterDropdown: React.FC<{
   isDarkMode: boolean;
   className?: string;
   dispatch?: any;
+  onManageStatus?: () => void;
+  onManagePhase?: () => void;
 }> = ({
   section,
   onSelectionChange,
@@ -376,6 +378,8 @@ const FilterDropdown: React.FC<{
   isDarkMode,
   className = '',
   dispatch,
+  onManageStatus,
+  onManagePhase,
 }) => {
   const { t } = useTranslation('task-list-filters');
   // Add permission checks for groupBy section
@@ -486,11 +490,7 @@ const FilterDropdown: React.FC<{
         <div className="inline-flex items-center gap-1 ml-2">
           {section.selectedValues[0] === 'phase' && (
             <button
-              onClick={() => {
-                import('@/features/projects/singleProject/phase/phases.slice').then(({ toggleDrawer }) => {
-                  dispatch(toggleDrawer());
-                });
-              }}
+              onClick={onManagePhase}
               className={`inline-flex items-center gap-1.5 px-2.5 py-1.5 text-xs font-medium rounded-md border transition-all duration-200 ease-in-out hover:shadow-sm focus:outline-none focus:ring-2 focus:ring-gray-500 focus:ring-offset-2 ${themeClasses.buttonBg} ${themeClasses.buttonBorder} ${themeClasses.buttonText} ${
                 isDarkMode ? 'focus:ring-offset-gray-900' : 'focus:ring-offset-white'
               }`}
@@ -500,11 +500,7 @@ const FilterDropdown: React.FC<{
           )}
           {section.selectedValues[0] === 'status' && (
             <button
-              onClick={() => {
-                import('@/features/projects/status/StatusSlice').then(({ toggleDrawer }) => {
-                  dispatch(toggleDrawer());
-                });
-              }}
+              onClick={onManageStatus}
               className={`inline-flex items-center gap-1.5 px-2.5 py-1.5 text-xs font-medium rounded-md border transition-all duration-200 ease-in-out hover:shadow-sm focus:outline-none focus:ring-2 focus:ring-gray-500 focus:ring-offset-2 ${themeClasses.buttonBg} ${themeClasses.buttonBorder} ${themeClasses.buttonText} ${
                 isDarkMode ? 'focus:ring-offset-gray-900' : 'focus:ring-offset-white'
               }`}
@@ -946,7 +942,7 @@ const ImprovedTaskFilters: React.FC<ImprovedTaskFiltersProps> = ({ position, cla
   const showArchived = position === 'list' ? taskManagementArchived : taskReducerArchived;
 
   // Use the filter data loader hook
-  useFilterDataLoader();
+  const { refreshFilterData } = useFilterDataLoader();
 
   // Get search value from Redux based on position
   const taskManagementSearch = useAppSelector(state => state.taskManagement?.search || '');
@@ -959,6 +955,10 @@ const ImprovedTaskFilters: React.FC<ImprovedTaskFiltersProps> = ({ position, cla
   const [openDropdown, setOpenDropdown] = useState<string | null>(null);
   const [activeFiltersCount, setActiveFiltersCount] = useState(0);
   const [clearingFilters, setClearingFilters] = useState(false);
+  
+  // Modal state
+  const [showManageStatusModal, setShowManageStatusModal] = useState(false);
+  const [showManagePhaseModal, setShowManagePhaseModal] = useState(false);
 
   // Refs for debounced functions
   const debouncedFilterChangeRef = useRef<
@@ -1296,6 +1296,8 @@ const ImprovedTaskFilters: React.FC<ImprovedTaskFiltersProps> = ({ position, cla
                 themeClasses={themeClasses}
                 isDarkMode={isDarkMode}
                 dispatch={dispatch}
+                onManageStatus={() => setShowManageStatusModal(true)}
+                onManagePhase={() => setShowManagePhaseModal(true)}
               />
             ))
           ) : (
@@ -1356,6 +1358,27 @@ const ImprovedTaskFilters: React.FC<ImprovedTaskFiltersProps> = ({ position, cla
           )}
         </div>
       </div>
+      
+      {/* Modals */}
+      <ManageStatusModal
+        open={showManageStatusModal}
+        onClose={() => {
+          setShowManageStatusModal(false);
+          // Refresh filter data after status changes
+          refreshFilterData();
+        }}
+        projectId={projectId || undefined}
+      />
+      
+      <ManagePhaseModal
+        open={showManagePhaseModal}
+        onClose={() => {
+          setShowManagePhaseModal(false);
+          // Refresh filter data after phase changes
+          refreshFilterData();
+        }}
+        projectId={projectId || undefined}
+      />
     </div>
   );
 };
diff --git a/worklenz-frontend/src/hooks/useFilterDataLoader.ts b/worklenz-frontend/src/hooks/useFilterDataLoader.ts
index 6165e018..9972b9eb 100644
--- a/worklenz-frontend/src/hooks/useFilterDataLoader.ts
+++ b/worklenz-frontend/src/hooks/useFilterDataLoader.ts
@@ -5,6 +5,7 @@ import { fetchPriorities } from '@/features/taskAttributes/taskPrioritySlice';
 import { fetchLabelsByProject, fetchTaskAssignees } from '@/features/tasks/tasks.slice';
 import { getTeamMembers } from '@/features/team-members/team-members.slice';
 import { fetchStatuses } from '@/features/taskAttributes/taskStatusSlice';
+import { fetchPhasesByProjectId } from '@/features/projects/singleProject/phase/phases.slice';
 
 /**
  * Hook to manage filter data loading independently of main task list loading
@@ -22,6 +23,27 @@ export const useFilterDataLoader = () => {
   // Memoize the projectId selector to prevent unnecessary re-renders
   const projectId = useAppSelector(state => state.projectReducer.projectId);
 
+  // Export a refresh function for external use
+  const refreshFilterData = useCallback(async () => {
+    if (projectId) {
+      dispatch(fetchLabelsByProject(projectId));
+      dispatch(fetchTaskAssignees(projectId));
+      dispatch(fetchStatuses(projectId));
+      dispatch(fetchPhasesByProjectId(projectId));
+    }
+    dispatch(fetchPriorities());
+    dispatch(
+      getTeamMembers({
+        index: 0,
+        size: 100,
+        field: null,
+        order: null,
+        search: null,
+        all: true,
+      })
+    );
+  }, [dispatch, projectId]);
+
   // Load filter data asynchronously
   const loadFilterData = useCallback(async () => {
     try {
@@ -71,5 +93,6 @@ export const useFilterDataLoader = () => {
 
   return {
     loadFilterData,
+    refreshFilterData,
   };
 };