diff --git a/frontend/src/components/tools/automate/AutomationCreation.tsx b/frontend/src/components/tools/automate/AutomationCreation.tsx
index c72c66036..e9f8de43f 100644
--- a/frontend/src/components/tools/automate/AutomationCreation.tsx
+++ b/frontend/src/components/tools/automate/AutomationCreation.tsx
@@ -8,15 +8,19 @@ import {
   Group,
   TextInput,
   ActionIcon,
-  Divider
+  Divider,
+  Modal
 } from '@mantine/core';
 import DeleteIcon from '@mui/icons-material/Delete';
 import SettingsIcon from '@mui/icons-material/Settings';
 import CheckIcon from '@mui/icons-material/Check';
 import CloseIcon from '@mui/icons-material/Close';
+import AddCircleOutline from '@mui/icons-material/AddCircleOutline';
+import ArrowBackIcon from '@mui/icons-material/ArrowBack';
 import { ToolRegistryEntry } from '../../../data/toolsTaxonomy';
 import ToolConfigurationModal from './ToolConfigurationModal';
 import ToolSelector from './ToolSelector';
+import AutomationEntry from './AutomationEntry';
 
 interface AutomationCreationProps {
   mode: 'custom' | 'suggested' | 'create';
@@ -41,6 +45,7 @@ export default function AutomationCreation({ mode, existingAutomation, onBack, o
   const [selectedTools, setSelectedTools] = useState<AutomationTool[]>([]);
   const [configModalOpen, setConfigModalOpen] = useState(false);
   const [configuraingToolIndex, setConfiguringToolIndex] = useState(-1);
+  const [unsavedWarningOpen, setUnsavedWarningOpen] = useState(false);
 
   // Initialize based on mode and existing automation
   useEffect(() => {
@@ -56,8 +61,27 @@ export default function AutomationCreation({ mode, existingAutomation, onBack, o
       }));
 
       setSelectedTools(tools);
+    } else if (mode === 'create' && selectedTools.length === 0) {
+      // Initialize with 2 empty tools for new automation
+      const defaultTools = [
+        {
+          id: `tool-1-${Date.now()}`,
+          operation: '',
+          name: t('automate.creation.tools.selectTool', 'Select a tool...'),
+          configured: false,
+          parameters: {}
+        },
+        {
+          id: `tool-2-${Date.now() + 1}`,
+          operation: '',
+          name: t('automate.creation.tools.selectTool', 'Select a tool...'),
+          configured: false,
+          parameters: {}
+        }
+      ];
+      setSelectedTools(defaultTools);
     }
-  }, [mode, existingAutomation]);
+  }, [mode, existingAutomation, selectedTools.length, t]);
 
   const getToolName = (operation: string) => {
     const tool = toolRegistry?.[operation] as any;
@@ -78,6 +102,8 @@ export default function AutomationCreation({ mode, existingAutomation, onBack, o
   };
 
   const removeTool = (index: number) => {
+    // Don't allow removing tools if only 2 remain
+    if (selectedTools.length <= 2) return;
     setSelectedTools(selectedTools.filter((_, i) => i !== index));
   };
 
@@ -105,14 +131,38 @@ export default function AutomationCreation({ mode, existingAutomation, onBack, o
     setConfiguringToolIndex(-1);
   };
 
+  const hasUnsavedChanges = () => {
+    return (
+      automationName.trim() !== '' ||
+      selectedTools.some(tool => tool.operation !== '' || tool.configured)
+    );
+  };
+
   const canSaveAutomation = () => {
     return (
       automationName.trim() !== '' &&
       selectedTools.length > 0 &&
-      selectedTools.every(tool => tool.configured)
+      selectedTools.every(tool => tool.configured && tool.operation !== '')
     );
   };
 
+  const handleBackClick = () => {
+    if (hasUnsavedChanges()) {
+      setUnsavedWarningOpen(true);
+    } else {
+      onBack();
+    }
+  };
+
+  const handleConfirmBack = () => {
+    setUnsavedWarningOpen(false);
+    onBack();
+  };
+
+  const handleCancelBack = () => {
+    setUnsavedWarningOpen(false);
+  };
+
   const saveAutomation = async () => {
     if (!canSaveAutomation()) return;
 
@@ -152,61 +202,117 @@ export default function AutomationCreation({ mode, existingAutomation, onBack, o
           size="sm"
         />
 
-        {/* Add Tool Selector */}
-        <ToolSelector
-          onSelect={addTool}
-          excludeTools={['automate']}
-          toolRegistry={toolRegistry}
-        />
 
-        {/* Selected Tools */}
+        {/* Selected Tools List */}
         {selectedTools.length > 0 && (
-          <Stack gap="xs">
-            {selectedTools.map((tool, index) => (
-              <Group key={tool.id} gap="xs" align="center">
-                <Text size="xs" c="dimmed" style={{ minWidth: '1rem', textAlign: 'center' }}>
-                  {index + 1}
-                </Text>
+          <div>
+            <Text size="sm" fw={500} mb="xs" style={{ color: 'var(--mantine-color-text)' }}>
+              {t('automate.creation.tools.selected', 'Selected Tools')} ({selectedTools.length})
+            </Text>
+            <Stack gap="0" style={{
+            }}>
+              {selectedTools.map((tool, index) => (
+                <React.Fragment key={tool.id}>
+                  <div
+                    style={{
+                      border: '1px solid var(--mantine-color-gray-2)',
+                      borderRadius: 'var(--mantine-radius-sm)',
+                      backgroundColor: 'white'
+                    }}
+                  >
+                    <Group gap="xs" align="center" wrap="nowrap" style={{ width: '100%' }}>
 
-                <div style={{ flex: 1 }}>
-                  <Group justify="space-between" align="center">
-                    <Group gap="xs" align="center">
-                      <Text size="sm" style={{ color: 'var(--mantine-color-text)' }}>
-                        {tool.name}
-                      </Text>
-                      {tool.configured ? (
-                        <CheckIcon style={{ fontSize: 14, color: 'green' }} />
-                      ) : (
-                        <CloseIcon style={{ fontSize: 14, color: 'orange' }} />
-                      )}
-                    </Group>
+                      <div style={{ flex: 1, minWidth: 0, overflow: 'hidden' }}>
+                        {/* Tool Selection Dropdown */}
+                        <ToolSelector
+                          key={`tool-selector-${tool.id}`}
+                          onSelect={(newOperation) => {
+                            const updatedTools = [...selectedTools];
+                            updatedTools[index] = {
+                              ...updatedTools[index],
+                              operation: newOperation,
+                              name: getToolName(newOperation),
+                              configured: false,
+                              parameters: {}
+                            };
+                            setSelectedTools(updatedTools);
+                          }}
+                          excludeTools={['automate']}
+                          toolRegistry={toolRegistry}
+                          selectedValue={tool.operation}
+                          placeholder={tool.name}
+                        />
+                      </div>
 
-                    <Group gap="xs">
-                      <ActionIcon
-                        variant="subtle"
-                        size="sm"
-                        onClick={() => configureTool(index)}
-                      >
-                        <SettingsIcon style={{ fontSize: 16 }} />
-                      </ActionIcon>
-                      <ActionIcon
-                        variant="subtle"
-                        size="sm"
-                        color="red"
-                        onClick={() => removeTool(index)}
-                      >
-                        <DeleteIcon style={{ fontSize: 16 }} />
-                      </ActionIcon>
+                      <Group gap="xs" style={{ flexShrink: 0 }}>
+                        {tool.configured ? (
+                          <CheckIcon style={{ fontSize: 14, color: 'green' }} />
+                        ) : (
+                          <CloseIcon style={{ fontSize: 14, color: 'orange' }} />
+                        )}
+
+                        <ActionIcon
+                          variant="subtle"
+                          size="sm"
+                          onClick={() => configureTool(index)}
+                          title={t('automate.creation.tools.configure', 'Configure tool')}
+                        >
+                          <SettingsIcon style={{ fontSize: 16 }} />
+                        </ActionIcon>
+
+                        <ActionIcon
+                          variant="subtle"
+                          size="sm"
+                          color="red"
+                          onClick={() => removeTool(index)}
+                          title={t('automate.creation.tools.remove', 'Remove tool')}
+                        >
+                          <DeleteIcon style={{ fontSize: 16 }} />
+                        </ActionIcon>
+                      </Group>
                     </Group>
-                  </Group>
+                  </div>
+
+                  {index < selectedTools.length - 1 && (
+                    <div style={{ textAlign: 'center', padding: '8px 0' }}>
+                      <Text size="xs" c="dimmed">↓</Text>
+                    </div>
+                  )}
+                </React.Fragment>
+              ))}
+
+              {/* Arrow before Add Tool Button */}
+              {selectedTools.length > 0 && (
+                <div style={{ textAlign: 'center', padding: '8px 0' }}>
+                  <Text size="xs" c="dimmed">↓</Text>
                 </div>
+              )}
 
-                {index < selectedTools.length - 1 && (
-                  <Text size="xs" c="dimmed">→</Text>
-                )}
-              </Group>
-            ))}
-          </Stack>
+              {/* Add Tool Button */}
+              <div style={{
+                border: '1px solid var(--mantine-color-gray-2)',
+                borderRadius: 'var(--mantine-radius-sm)',
+                overflow: 'hidden'
+              }}>
+                <AutomationEntry
+                  title={t('automate.creation.tools.addTool', 'Add Tool')}
+                  badgeIcon={AddCircleOutline}
+                  operations={[]}
+                  onClick={() => {
+                    const newTool: AutomationTool = {
+                      id: `tool-${Date.now()}`,
+                      operation: '',
+                      name: t('automate.creation.tools.selectTool', 'Select a tool...'),
+                      configured: false,
+                      parameters: {}
+                    };
+                    setSelectedTools([...selectedTools, newTool]);
+                  }}
+                  keepIconColor={true}
+                />
+              </div>
+            </Stack>
+          </div>
         )}
 
         <Divider />
@@ -231,6 +337,28 @@ export default function AutomationCreation({ mode, existingAutomation, onBack, o
           onCancel={handleToolConfigCancel}
         />
       )}
+
+      {/* Unsaved Changes Warning Modal */}
+      <Modal
+        opened={unsavedWarningOpen}
+        onClose={handleCancelBack}
+        title={t('automate.creation.unsavedChanges.title', 'Unsaved Changes')}
+        centered
+      >
+        <Stack gap="md">
+          <Text>
+            {t('automate.creation.unsavedChanges.message', 'You have unsaved changes. Are you sure you want to go back? All changes will be lost.')}
+          </Text>
+          <Group gap="md" justify="flex-end">
+            <Button variant="outline" onClick={handleCancelBack}>
+              {t('automate.creation.unsavedChanges.cancel', 'Cancel')}
+            </Button>
+            <Button color="red" onClick={handleConfirmBack}>
+              {t('automate.creation.unsavedChanges.confirm', 'Go Back')}
+            </Button>
+          </Group>
+        </Stack>
+      </Modal>
     </div>
   );
 }
diff --git a/frontend/src/components/tools/automate/ToolSelector.tsx b/frontend/src/components/tools/automate/ToolSelector.tsx
index 8d49e4649..30515179b 100644
--- a/frontend/src/components/tools/automate/ToolSelector.tsx
+++ b/frontend/src/components/tools/automate/ToolSelector.tsx
@@ -10,9 +10,17 @@ interface ToolSelectorProps {
   onSelect: (toolKey: string) => void;
   excludeTools?: string[];
   toolRegistry: Record<string, ToolRegistryEntry>; // Pass registry as prop to break circular dependency
+  selectedValue?: string; // For showing current selection when editing existing tool
+  placeholder?: string; // Custom placeholder text
 }
 
-export default function ToolSelector({ onSelect, excludeTools = [], toolRegistry }: ToolSelectorProps) {
+export default function ToolSelector({ 
+  onSelect, 
+  excludeTools = [], 
+  toolRegistry, 
+  selectedValue,
+  placeholder
+}: ToolSelectorProps) {
   const { t } = useTranslation();
   const [opened, setOpened] = useState(false);
   const [searchTerm, setSearchTerm] = useState('');
@@ -83,6 +91,14 @@ export default function ToolSelector({ onSelect, excludeTools = [], toolRegistry
     }
   };
 
+  // Get display value for selected tool
+  const getDisplayValue = () => {
+    if (selectedValue && toolRegistry[selectedValue]) {
+      return toolRegistry[selectedValue].name;
+    }
+    return placeholder || t('automate.creation.tools.add', 'Add a tool...');
+  };
+
   return (
     <Menu 
       opened={opened} 
@@ -98,7 +114,8 @@ export default function ToolSelector({ onSelect, excludeTools = [], toolRegistry
             onChange={handleSearchChange}
             toolRegistry={filteredToolRegistry}
             mode="filter"
-            placeholder={t('automate.creation.tools.add', 'Add a tool...')}
+            placeholder={getDisplayValue()}
+            hideIcon={true}
           />
         </div>
       </Menu.Target>
diff --git a/frontend/src/components/tools/toolPicker/ToolSearch.tsx b/frontend/src/components/tools/toolPicker/ToolSearch.tsx
index 516a40ad1..0cb86aa1e 100644
--- a/frontend/src/components/tools/toolPicker/ToolSearch.tsx
+++ b/frontend/src/components/tools/toolPicker/ToolSearch.tsx
@@ -13,6 +13,7 @@ interface ToolSearchProps {
   mode: 'filter' | 'dropdown';
   selectedToolKey?: string | null;
   placeholder?: string;
+  hideIcon?: boolean;
 }
 
 const ToolSearch = ({ 
@@ -22,7 +23,8 @@ const ToolSearch = ({
   onToolSelect, 
   mode = 'filter',
   selectedToolKey,
-  placeholder 
+  placeholder,
+  hideIcon = false
 }: ToolSearchProps) => {
   const { t } = useTranslation();
   const [dropdownOpen, setDropdownOpen] = useState(false);
@@ -64,7 +66,7 @@ const ToolSearch = ({
         value={value}
         onChange={handleSearchChange}
         placeholder={placeholder || t("toolPicker.searchPlaceholder", "Search tools...")}
-        icon={<span className="material-symbols-rounded">search</span>}
+        icon={hideIcon ? undefined : <span className="material-symbols-rounded">search</span>}
         autoComplete="off"
       />
     </div>
diff --git a/frontend/src/tools/Automate.tsx b/frontend/src/tools/Automate.tsx
index 5c826c33b..bdbc7715e 100644
--- a/frontend/src/tools/Automate.tsx
+++ b/frontend/src/tools/Automate.tsx
@@ -81,6 +81,7 @@ const Automate = ({ onPreviewFile, onComplete, onError }: BaseToolProps) => {
       {
         title: t('automate.stepTitle', 'Automations'),
         isVisible: true,
+        onCollapsedClick: ()=> setCurrentStep('selection'),
         content: currentStep === 'selection' ? renderCurrentStep() : null
       },
       {