diff --git a/packages/crayons-core/src/utils/draggable.ts b/packages/crayons-core/src/utils/draggable.ts
index 422d0f8db..7450bad8c 100644
--- a/packages/crayons-core/src/utils/draggable.ts
+++ b/packages/crayons-core/src/utils/draggable.ts
@@ -80,7 +80,7 @@ export class Draggable {
           bubbles: false,
           detail: {
             droppedElement: dragElement,
-            dropToId: this.dragContainer.id, // Return the drop container ID
+            dragContainer: this.dragContainer, // Return the drop container ID
           },
         })
       );
@@ -99,7 +99,6 @@ export class Draggable {
 
   private isDropNotAllowed() {
     const inValidTypesForSection = [
-      'DROPDOWN',
       'DEPENDENT_FIELD',
       'MULTI_SELECT',
       'RELATIONSHIP',
@@ -107,10 +106,42 @@ export class Draggable {
     const dragId = this.dragContainer.id;
     const isSection = dragId.includes('sectionIdentifier-');
     const isFieldTypeNotAllowed = inValidTypesForSection.includes(
-      dragElement.dataProvider.type
+      dragElement.dataProvider?.type
     );
+
+    // Check if the DROPDOWN is default field
+    const isDropdownDefaultField =
+      dragElement.dataProvider?.type === 'DROPDOWN' &&
+      !dragElement.dataProvider.custom;
+
+    const isNewField =
+      dragElement.dataProvider?.choices?.length > 0 &&
+      dragElement.dataProvider?.choices[0]?.value === '';
+
+    // Allow dropping if it's a new DROPDOWN field
+    const isAllowedNewDropdown =
+      dragElement.dataProvider?.type === 'DROPDOWN' && isNewField;
+
+    // Check if the DROPDOWN has field_options with hasSections
+    const hasSectionsInFieldOptions =
+      dragElement.dataProvider?.type === 'DROPDOWN' &&
+      dragElement.dataProvider?.field_options &&
+      dragElement.dataProvider?.field_options.has_sections;
+
+    // Check if the section already has the maximum number of fields
+    const isSectionFieldLimitExceeded =
+      this.dragContainer?.children?.length > 15;
+
+    // Check if the field is required
     const isFieldRequired = dragElement.dataProvider.required;
-    return isSection && (isFieldTypeNotAllowed || isFieldRequired);
+    return (
+      isSection &&
+      (isFieldTypeNotAllowed ||
+        isFieldRequired ||
+        isSectionFieldLimitExceeded ||
+        (isDropdownDefaultField && !isAllowedNewDropdown) ||
+        hasSectionsInFieldOptions)
+    );
   }
 
   private onDragLeave = (e) => {
@@ -157,7 +188,7 @@ export class Draggable {
           bubbles: false,
           detail: {
             droppedElement: dragElement,
-            dropToId: this.dragContainer.id, // Return the drop container ID
+            dragContainer: this.dragContainer, // Return the drop container ID
           },
         })
       );
@@ -198,7 +229,12 @@ export class Draggable {
     this.dropped = true;
     const sortContainerId = dragElement.parentElement.id;
     const newElement = this.placeholder || dragElement;
-    const droppedIndex = [...this.dragContainer.children].indexOf(newElement);
+
+    // Get all children except the empty section
+    const relevantChildren = [...this.dragContainer.children].filter(
+      (child) => !child.classList.contains('empty-section')
+    );
+    const droppedIndex = [...relevantChildren].indexOf(newElement);
     if (this.placeholder) {
       if (this.options.addOnDrop) {
         const clone = this.options.copy
diff --git a/packages/crayons-extended/custom-objects/src/components/form-builder/components/fb-field-drag-drop-item.tsx b/packages/crayons-extended/custom-objects/src/components/form-builder/components/fb-field-drag-drop-item.tsx
index dab65842e..179e3a501 100644
--- a/packages/crayons-extended/custom-objects/src/components/form-builder/components/fb-field-drag-drop-item.tsx
+++ b/packages/crayons-extended/custom-objects/src/components/form-builder/components/fb-field-drag-drop-item.tsx
@@ -161,10 +161,13 @@ export class FormBuilderFieldDragDropItem {
       hasCustomProperty(this.dataProvider, objProductConfig.defaultTagKey) &&
       !this.dataProvider[objProductConfig.defaultTagKey];
 
+    const isCustomDropdownField =
+      !isDefaultNonCustomField && isDropdownField(this.dataProvider);
+
     const showDynamicFieldSections =
       this.dynamicSectionsBetaEnabled &&
-      !isDefaultNonCustomField &&
-      isDropdownField(this.dataProvider);
+      isCustomDropdownField &&
+      !this.sectionName;
 
     let choicesWithNoSectionCreated = [],
       noOfSections = 0,
diff --git a/packages/crayons-extended/custom-objects/src/components/form-builder/form-builder.tsx b/packages/crayons-extended/custom-objects/src/components/form-builder/form-builder.tsx
index 0e826b6f6..d63884e04 100644
--- a/packages/crayons-extended/custom-objects/src/components/form-builder/form-builder.tsx
+++ b/packages/crayons-extended/custom-objects/src/components/form-builder/form-builder.tsx
@@ -531,13 +531,15 @@ export class FormBuilder {
     const objDetail = event.detail,
       elField = objDetail.droppedElement;
     let elFieldType = elField.dataProvider.type;
-
+    if (objDetail.dragContainer.children.length > 15) {
+      elFieldType = 'MAX_LIMIT';
+    }
     if (elField.dataProvider.required) {
       elFieldType = 'REQUIRED';
     }
-
     if (!elField.dataProvider.custom && elField.dataProvider.label) {
-      elFieldType = 'DEFAULT';
+      elFieldType =
+        elFieldType === 'DEPENDENT_FIELD' ? 'DEPENDENT_FIELD' : 'DEFAULT';
     }
 
     this.dragErrorMessages = {
diff --git a/packages/crayons-i18n/i18n/en-US.json b/packages/crayons-i18n/i18n/en-US.json
index 2bd6ea44b..e7221029b 100644
--- a/packages/crayons-i18n/i18n/en-US.json
+++ b/packages/crayons-i18n/i18n/en-US.json
@@ -218,7 +218,8 @@
         "DEPENDENT_FIELD" : "Dependent fields cannot be added into sections",
         "RELATIONSHIP" : "Lookup fields cannot be added into sections",
         "REQUIRED" : "Fields marked as required cannot be added into sections",
-        "DEFAULT" : "Default fields cannot be added into sections"
+        "DEFAULT" : "Default fields cannot be added into sections",
+        "MAX_LIMIT": "Sections cannot contain more than 15 fields"
       }
     }
   },