diff --git a/packages/client-core/i18n/en/editor.json b/packages/client-core/i18n/en/editor.json
index 629dc7b650..13e33ebe36 100755
--- a/packages/client-core/i18n/en/editor.json
+++ b/packages/client-core/i18n/en/editor.json
@@ -1087,7 +1087,8 @@
       "openInNewTab": "Open URL in New Tab",
       "deleteAsset": "Delete Asset",
       "prefab": "Prefab",
-      "prefab-search": "Search Prefabs ...",
+      "prefabs": "Prefabs",
+      "prefabs-search": "Search Prefabs ...",
       "components": "Components",
       "components-search": "Search Components ...",
       "component-detail": {
diff --git a/packages/ui/src/components/editor/panels/Hierarchy/container/index.tsx b/packages/ui/src/components/editor/panels/Hierarchy/container/index.tsx
index 9780de4381..79da362b70 100644
--- a/packages/ui/src/components/editor/panels/Hierarchy/container/index.tsx
+++ b/packages/ui/src/components/editor/panels/Hierarchy/container/index.tsx
@@ -56,10 +56,15 @@ import { cmdOrCtrlString } from '@etherealengine/editor/src/functions/utils'
 import { EditorState } from '@etherealengine/editor/src/services/EditorServices'
 import { SelectionState } from '@etherealengine/editor/src/services/SelectionServices'
 import { GLTFAssetState, GLTFSnapshotState } from '@etherealengine/engine/src/gltf/GLTFState'
+import { PopoverPosition } from '@mui/material'
 import { HiMagnifyingGlass, HiOutlinePlusCircle } from 'react-icons/hi2'
+import { HierarchyPanelTab } from '..'
 import Button from '../../../../../primitives/tailwind/Button'
 import Input from '../../../../../primitives/tailwind/Input'
 import ContextMenu from '../../../layout/ContextMenu'
+import Popover from '../../../layout/Popover'
+import { PopoverContext } from '../../../util/PopoverContext'
+import ElementList from '../../Properties/elementList'
 import HierarchyTreeNode, { HierarchyTreeNodeProps, RenameNodeData, getNodeElId } from '../node'
 
 const uploadOptions = {
@@ -76,6 +81,7 @@ function HierarchyPanelContents(props: { sceneURL: string; rootEntityUUID: Entit
   const [contextSelectedItem, setContextSelectedItem] = React.useState<undefined | HeirarchyTreeNodeType>(undefined)
   const [anchorEl, setAnchorEl] = React.useState<null | HTMLElement>(null)
   const [anchorPosition, setAnchorPosition] = React.useState({ left: 0, top: 0 })
+  const [anchorPositionPop, setAnchorPositionPop] = React.useState<undefined | PopoverPosition>(undefined)
   const [prevClickedNode, setPrevClickedNode] = useState<HeirarchyTreeNodeType | null>(null)
   const onUpload = useUpload(uploadOptions)
   const [renamingNode, setRenamingNode] = useState<RenameNodeData | null>(null)
@@ -435,31 +441,57 @@ function HierarchyPanelContents(props: { sceneURL: string; rootEntityUUID: Entit
       {MemoTreeNode}
     </FixedSizeList>
   )
-
+  const panel = document.getElementById('propertiesPanel')
+  const anchorElButton = useHookstate<HTMLButtonElement | null>(null)
+  const open = !!anchorElButton.value
   return (
     <>
-      <div className="flex items-center gap-2 bg-theme-surface-main">
-        <Input
-          placeholder={t('common:components.search')}
-          value={searchHierarchy.value}
-          onChange={(event) => {
-            searchHierarchy.set(event.target.value)
+      <PopoverContext.Provider
+        value={{
+          handlePopoverClose: () => {
+            anchorElButton.set(null)
+          }
+        }}
+      >
+        <div className="flex items-center gap-2 bg-theme-surface-main">
+          <Input
+            placeholder={t('common:components.search')}
+            value={searchHierarchy.value}
+            onChange={(event) => {
+              searchHierarchy.set(event.target.value)
+            }}
+            className="m-1 rounded bg-theme-primary text-[#A3A3A3]"
+            startComponent={<HiMagnifyingGlass className="text-white" />}
+          />
+          <Button
+            startIcon={<HiOutlinePlusCircle />}
+            variant="transparent"
+            rounded="none"
+            className="ml-auto w-32 bg-theme-highlight px-2 py-3"
+            size="small"
+            textContainerClassName="mx-0"
+            onClick={(event) => {
+              setAnchorPositionPop({ top: event.clientY - 10, left: panel?.getBoundingClientRect().left! + 10 })
+              anchorElButton.set(event.currentTarget)
+            }}
+          >
+            <span className="text-nowrap">{t('editor:hierarchy.lbl-addEntity')}</span>
+          </Button>
+        </div>
+        <Popover
+          open={open}
+          anchorEl={anchorElButton.value as any}
+          onClose={() => {
+            anchorElButton.set(null)
+            setAnchorPositionPop(undefined)
           }}
-          className="m-1 rounded bg-theme-primary text-[#A3A3A3]"
-          startComponent={<HiMagnifyingGlass className="text-white" />}
-        />
-        <Button
-          startIcon={<HiOutlinePlusCircle />}
-          variant="transparent"
-          rounded="none"
-          className="ml-auto w-32 bg-theme-highlight px-2 py-3"
-          size="small"
-          textContainerClassName="mx-0"
-          onClick={() => EditorControlFunctions.createObjectFromSceneElement()}
+          panelId={HierarchyPanelTab.id!}
+          anchorPosition={anchorPositionPop}
+          className="h-[60%] w-full min-w-[300px] overflow-y-auto"
         >
-          <span className="text-nowrap">{t('editor:hierarchy.lbl-addEntity')}</span>
-        </Button>
-      </div>
+          <ElementList type="prefabs" />
+        </Popover>
+      </PopoverContext.Provider>
       <div id="heirarchy-panel" className="h-5/6 overflow-hidden">
         <AutoSizer onResize={HierarchyList}>{HierarchyList}</AutoSizer>
       </div>
diff --git a/packages/ui/src/components/editor/panels/Properties/container/index.tsx b/packages/ui/src/components/editor/panels/Properties/container/index.tsx
index f505954c49..f14a8e5260 100644
--- a/packages/ui/src/components/editor/panels/Properties/container/index.tsx
+++ b/packages/ui/src/components/editor/panels/Properties/container/index.tsx
@@ -110,7 +110,7 @@ const EntityEditor = (props: { entityUUID: EntityUUID; multiEdit: boolean }) =>
         anchorPosition={anchorPosition}
         className="h-[60%] w-full min-w-[300px] overflow-y-auto"
       >
-        <ElementList />
+        <ElementList type="components" />
       </Popover>
       <TransformPropertyGroup entity={entity} />
       {components.map((c, i) => (
diff --git a/packages/ui/src/components/editor/panels/Properties/elementList/index.tsx b/packages/ui/src/components/editor/panels/Properties/elementList/index.tsx
index b410b7c10a..5b4dab143c 100644
--- a/packages/ui/src/components/editor/panels/Properties/elementList/index.tsx
+++ b/packages/ui/src/components/editor/panels/Properties/elementList/index.tsx
@@ -24,27 +24,32 @@ Ethereal Engine. All Rights Reserved.
 */
 
 import { startCase } from 'lodash'
-import React, { useEffect, useRef } from 'react'
+import React, { useEffect, useMemo, useRef } from 'react'
 import { useTranslation } from 'react-i18next'
 
 import { Component } from '@etherealengine/ecs/src/ComponentFunctions'
-import { getMutableState, getState, useHookstate, useMutableState } from '@etherealengine/hyperflux'
+import { getState, useHookstate, useMutableState } from '@etherealengine/hyperflux'
 
+import { PrefabShelfItem, PrefabShelfState } from '@etherealengine/editor/src/components/prefabs/PrefabEditors'
 import { ItemTypes } from '@etherealengine/editor/src/constants/AssetTypes'
 import { EditorControlFunctions } from '@etherealengine/editor/src/functions/EditorControlFunctions'
+import { addMediaNode } from '@etherealengine/editor/src/functions/addMediaNode'
 import { ComponentEditorsState } from '@etherealengine/editor/src/services/ComponentEditors'
 import { ComponentShelfCategoriesState } from '@etherealengine/editor/src/services/ComponentShelfCategoriesState'
 import { SelectionState } from '@etherealengine/editor/src/services/SelectionServices'
 import { GrStatusPlaceholder } from 'react-icons/gr'
-import { IoIosArrowDown, IoIosArrowUp } from 'react-icons/io'
+import { IoIosArrowDown, IoIosArrowUp, IoMdAddCircle } from 'react-icons/io'
+import Button from '../../../../../primitives/tailwind/Button'
 import Text from '../../../../../primitives/tailwind/Text'
 import StringInput from '../../../input/String'
 import { usePopoverContextClose } from '../../../util/PopoverContext'
 
+type ElementsType = 'components' | 'prefabs'
+
 export type SceneElementType = {
   componentJsonID: string
   label: string
-  Icon: any
+  Icon: JSX.Element
   type: typeof ItemTypes.Component
 }
 
@@ -57,15 +62,17 @@ const ComponentListItem = ({ item }: { item: Component }) => {
   const jsonName = item.jsonID?.slice(3).replace('_', '-') || item.name
 
   return (
-    <button
-      className="flex w-full items-center bg-theme-primary p-4 text-white"
+    <Button
+      variant="transparent"
+      fullWidth
+      className="w-full bg-theme-primary p-4 text-white"
       onClick={() => {
         const entities = SelectionState.getSelectedEntities()
         EditorControlFunctions.addOrRemoveComponent(entities, item, true)
         handleClosePopover()
       }}
+      startIcon={<Icon className="h-6 w-6 text-white" />}
     >
-      <Icon className="h-6 w-6 text-white" />
       <div className="ml-4 w-full">
         <Text className="text-subtitle1 block text-center text-theme-primary">
           {startCase(jsonName.replace('-', ' ').toLowerCase())}
@@ -74,34 +81,72 @@ const ComponentListItem = ({ item }: { item: Component }) => {
           {t(`editor:layout.assetGrid.component-detail.${jsonName}`, '')}
         </Text>
       </div>
-    </button>
+    </Button>
+  )
+}
+
+const PrefabListItem = ({ item }: { item: PrefabShelfItem }) => {
+  const handleClosePopover = usePopoverContextClose()
+
+  return (
+    <Button
+      variant="transparent"
+      fullWidth
+      className="w-full bg-theme-primary p-4 text-white"
+      onClick={() => {
+        const url = item.url
+        if (!url.length) {
+          EditorControlFunctions.createObjectFromSceneElement()
+        } else {
+          addMediaNode(url)
+        }
+        handleClosePopover()
+      }}
+      startIcon={<IoMdAddCircle className="h-6 w-6 text-white" />}
+    >
+      <div className="ml-4 w-full">
+        <Text className="text-subtitle1 block text-center text-theme-primary">{item.name}</Text>
+        <Text component="p" className="text-caption block text-center text-theme-secondary">
+          {item.detail}
+        </Text>
+      </div>
+    </Button>
   )
 }
 
 const SceneElementListItem = ({
   categoryTitle,
   categoryItems,
-  isCollapsed
+  isCollapsed,
+  type
 }: {
   categoryTitle: string
-  categoryItems: Component[]
+  categoryItems: Component[] | PrefabShelfItem[]
   isCollapsed: boolean
+  type: ElementsType
 }) => {
-  const open = useHookstate(categoryTitle === 'Misc')
+  const open = useHookstate(false)
   return (
     <>
-      <button
+      <Button
+        variant="transparent"
+        fullWidth
+        className="w-full bg-theme-primary px-4 py-2 text-white"
+        textContainerClassName="text-start"
         onClick={() => open.set((prev) => !prev)}
-        className="flex w-full cursor-pointer items-center justify-between bg-theme-primary px-4 py-2 text-white"
+        endIcon={isCollapsed || open.value ? <IoIosArrowUp /> : <IoIosArrowDown />}
       >
-        <span>{categoryTitle}</span>
-        {isCollapsed || open.value ? <IoIosArrowUp /> : <IoIosArrowDown />}
-      </button>
+        {categoryTitle}
+      </Button>
       <div className={isCollapsed || open.value ? '' : 'hidden'}>
         <ul className="w-full bg-theme-primary">
-          {categoryItems.map((item) => (
-            <ComponentListItem key={item.jsonID || item.name} item={item} />
-          ))}
+          {categoryItems.map((item: Component | PrefabShelfItem) =>
+            type === 'components' ? (
+              <ComponentListItem key={(item as Component).jsonID || item.name} item={item as Component} />
+            ) : (
+              <PrefabListItem key={(item as PrefabShelfItem).url} item={item as PrefabShelfItem} />
+            )
+          )}
         </ul>
       </div>
     </>
@@ -109,7 +154,7 @@ const SceneElementListItem = ({
 }
 
 const useComponentShelfCategories = (search: string) => {
-  useHookstate(getMutableState(ComponentShelfCategoriesState)).value
+  useMutableState(ComponentShelfCategoriesState).value
 
   if (!search) {
     return Object.entries(getState(ComponentShelfCategoriesState))
@@ -125,12 +170,40 @@ const useComponentShelfCategories = (search: string) => {
     .filter(([_, items]) => !!items.length)
 }
 
-export function ElementList() {
+const usePrefabShelfCategories = (search: string): [string, PrefabShelfItem[]][] => {
+  const prefabState = useMutableState(PrefabShelfState).value
+  const prefabShelves = useMemo(() => {
+    const shelves: Record<string, PrefabShelfItem[]> = {}
+    for (const prefab of prefabState) {
+      shelves[prefab.category] ??= []
+      shelves[prefab.category].push(prefab)
+    }
+    return shelves
+  }, [prefabState])
+
+  if (!search) {
+    return Object.entries(prefabShelves)
+  }
+
+  const searchRegExp = new RegExp(search, 'gi')
+
+  return Object.entries(prefabShelves)
+    .map(([category, items]) => {
+      const filteredItems = items.filter((item) => item.name.match(searchRegExp)?.length)
+      return [category, filteredItems] as [string, PrefabShelfItem[]]
+    })
+    .filter(([_, items]) => !!items.length)
+}
+
+export function ElementList({ type }: { type: ElementsType }) {
   const { t } = useTranslation()
   const search = useHookstate({ local: '', query: '' })
   const searchTimeout = useRef<ReturnType<typeof setTimeout> | null>(null)
 
-  const shelves = useComponentShelfCategories(search.query.value)
+  const shelves =
+    type === 'components'
+      ? useComponentShelfCategories(search.query.value)
+      : usePrefabShelfCategories(search.query.value)
   const inputReference = useRef<HTMLInputElement>(null)
 
   useEffect(() => {
@@ -148,22 +221,24 @@ export function ElementList() {
   return (
     <>
       <div className="h-auto w-full overflow-x-hidden overflow-y-scroll bg-theme-primary p-2">
-        <Text className="mb-1.5 w-full text-center uppercase text-white">
-          {t('editor:layout.assetGrid.components')}
-        </Text>
+        <Text className="mb-1.5 w-full text-center uppercase text-white">{t(`editor:layout.assetGrid.${type}`)}</Text>
         <StringInput
-          placeholder={t('editor:layout.assetGrid.components-search')}
+          placeholder={t(`editor:layout.assetGrid.${type}-search`)}
           value={search.local.value}
           onChange={(val) => onSearch(val)}
           inputRef={inputReference}
         />
       </div>
+      {type === 'prefabs' && (
+        <PrefabListItem item={{ name: 'Empty', url: '', category: '', detail: 'Basic scene entity' }} />
+      )}
       {shelves.map(([category, items]) => (
         <SceneElementListItem
           key={category}
           categoryTitle={category}
           categoryItems={items}
           isCollapsed={!!search.query.value}
+          type={type}
         />
       ))}
     </>