diff --git a/client/src/containers/profile/index.tsx b/client/src/containers/profile/index.tsx
index 4ddf2af6..b62ffbac 100644
--- a/client/src/containers/profile/index.tsx
+++ b/client/src/containers/profile/index.tsx
@@ -4,7 +4,7 @@ import { useEffect, useMemo, useRef } from "react";
 
 import Link from "next/link";
 
-import { useSetAtom } from "jotai";
+import { ExtractAtomValue, useSetAtom } from "jotai";
 
 import { useFeatureFlags } from "@/hooks/use-feature-flags";
 
@@ -14,13 +14,13 @@ import FileUpload, { TEMPLATE_FILES } from "@/containers/profile/file-upload";
 import FileUploadDescription from "@/containers/profile/file-upload/description";
 import ProfileSection from "@/containers/profile/profile-section";
 import ProfileSidebar from "@/containers/profile/profile-sidebar";
-import { intersectingAtom } from "@/containers/profile/store";
+import { profileStepAtom } from "@/containers/profile/store";
 import UserDetails from "@/containers/profile/user-details";
 
 import { ScrollArea } from "@/components/ui/scroll-area";
 import { SidebarTrigger } from "@/components/ui/sidebar";
 
-const sections = [
+export const PROFILE_SECTIONS = [
   {
     id: "my-details",
     title: "My details",
@@ -58,10 +58,10 @@ const sections = [
 
 export default function Profile() {
   const ref = useRef<HTMLDivElement>(null);
-  const setIntersecting = useSetAtom(intersectingAtom);
+  const setProfileStep = useSetAtom(profileStepAtom);
   const featureFlags = useFeatureFlags();
   const currentSections = useMemo(() => {
-    return sections.filter((section) => {
+    return PROFILE_SECTIONS.filter((section) => {
       const featureFlagExists = section.id in featureFlags;
       const isFeatureEnabled =
         featureFlagExists &&
@@ -78,9 +78,11 @@ export default function Profile() {
       (entries) => {
         entries.forEach((entry) => {
           if (entry.isIntersecting) {
-            const sectionSlug = entry.target.id;
+            const sectionSlug = entry.target.id as ExtractAtomValue<
+              typeof profileStepAtom
+            >;
 
-            setIntersecting(sectionSlug);
+            setProfileStep(sectionSlug);
           }
         });
       },
@@ -95,22 +97,22 @@ export default function Profile() {
       },
     );
 
-    const sections = Array.from(
+    const PROFILE_SECTIONS = Array.from(
       ref.current.querySelector("#profile-sections-container")?.children || [],
     );
-    sections.forEach((section) => observer.observe(section));
+    PROFILE_SECTIONS.forEach((section) => observer.observe(section));
 
     return () => observer.disconnect();
-  }, [setIntersecting]);
+  }, [setProfileStep]);
 
   return (
     <div className="flex h-lvh w-full flex-col">
-      <div className="flex items-center space-x-2 p-4">
+      <div className="flex h-16 items-center space-x-2 p-4 pl-0">
         <SidebarTrigger />
         <h2 className="text-2xl font-medium">User area</h2>
       </div>
 
-      <div className="relative grid h-full grid-cols-[317px_1fr] gap-6 overflow-hidden pl-4">
+      <div className="relative grid h-full grid-cols-[317px_1fr] gap-6 overflow-hidden">
         <ProfileSidebar
           navItems={currentSections.map((s) => ({ id: s.id, name: s.title }))}
         />
diff --git a/client/src/containers/profile/profile-sidebar/index.tsx b/client/src/containers/profile/profile-sidebar/index.tsx
index 41f4f21a..2bd6ac64 100644
--- a/client/src/containers/profile/profile-sidebar/index.tsx
+++ b/client/src/containers/profile/profile-sidebar/index.tsx
@@ -8,9 +8,8 @@ import { signOut, useSession } from "next-auth/react";
 
 import { client } from "@/lib/query-client";
 import { queryKeys } from "@/lib/query-keys";
-import { cn } from "@/lib/utils";
 
-import { intersectingAtom } from "@/containers/profile/store";
+import { profileStepAtom } from "@/containers/profile/store";
 
 import { Avatar, AvatarFallback } from "@/components/ui/avatar";
 import { Button } from "@/components/ui/button";
@@ -45,7 +44,7 @@ const ProfileSidebar: FC<ProfileSidebarProps> = ({ navItems }) => {
       queryKey: queryKeys.user.me(session?.user?.id as string).queryKey,
     },
   );
-  const intersecting = useAtomValue(intersectingAtom);
+  const intersecting = useAtomValue(profileStepAtom);
 
   return (
     <aside className="flex h-full flex-col gap-8 pb-6 pt-3">
@@ -62,27 +61,26 @@ const ProfileSidebar: FC<ProfileSidebarProps> = ({ navItems }) => {
         <h2 id="sidebar-nav-title" className="sr-only">
           User area navigation
         </h2>
-        <ol role="list" className="space-y-2">
+        <ul role="list" className="space-y-2">
           {navItems.map((o) => (
             <li key={`section-link-${o.id}`} role="listitem">
-              <Link
-                className={cn(
-                  "block rounded-3xl text-sm font-semibold text-muted-foreground transition-colors hover:bg-big-stone-900",
-                  intersecting === o.id && [
-                    "bg-accent text-accent-foreground",
-                    "hover:bg-accent hover:text-accent-foreground",
-                  ],
-                )}
-                href={`#${o.id}`}
-                id={getSidebarLinkId(o.id)}
-                aria-controls={o.id}
-                aria-current={intersecting === o.id ? "true" : undefined}
+              <Button
+                variant={intersecting === o.id ? "default" : "ghost"}
+                asChild
+                className="w-full justify-start font-medium"
               >
-                <div className="px-4 py-2">{o.name}</div>
-              </Link>
+                <Link
+                  href={`#${o.id}`}
+                  id={getSidebarLinkId(o.id)}
+                  aria-controls={o.id}
+                  aria-current={intersecting === o.id ? "true" : undefined}
+                >
+                  {o.name}
+                </Link>
+              </Button>
             </li>
           ))}
-        </ol>
+        </ul>
       </nav>
       <Button
         variant="outline"
diff --git a/client/src/containers/profile/store.ts b/client/src/containers/profile/store.ts
index 9eaac84f..a6c8dc10 100644
--- a/client/src/containers/profile/store.ts
+++ b/client/src/containers/profile/store.ts
@@ -1,3 +1,7 @@
 import { atom } from "jotai";
 
-export const intersectingAtom = atom<string | null>(null);
+import { PROFILE_SECTIONS } from "@/containers/profile";
+
+export const profileStepAtom = atom<
+  (typeof PROFILE_SECTIONS)[number]["id"] | null
+>(null);
diff --git a/client/src/containers/projects/form/assumptions/index.tsx b/client/src/containers/projects/form/assumptions/index.tsx
index 2805ff19..c6def173 100644
--- a/client/src/containers/projects/form/assumptions/index.tsx
+++ b/client/src/containers/projects/form/assumptions/index.tsx
@@ -63,8 +63,6 @@ export default function AssumptionsProjectForm() {
       },
     );
 
-  // const c = useMemo(() => COLUMNS(), []);
-
   const table = useReactTable({
     // @ts-expect-error fix later
     data: isSuccess ? data : NO_DATA,
diff --git a/client/src/containers/projects/form/index.tsx b/client/src/containers/projects/form/index.tsx
index ecbd8862..5acd8c60 100644
--- a/client/src/containers/projects/form/index.tsx
+++ b/client/src/containers/projects/form/index.tsx
@@ -1,4 +1,4 @@
-import { useFormContext } from "react-hook-form";
+import { useFormContext, useWatch } from "react-hook-form";
 
 import { ACTIVITY } from "@shared/entities/activity.enum";
 
@@ -8,27 +8,56 @@ import RestorationPlanProjectForm from "@/containers/projects/form/restoration-p
 import SetupProjectForm, {
   CreateCustomProjectForm,
 } from "@/containers/projects/form/setup";
+import {
+  PROJECT_SETUP_STEPS,
+  RESTORATION_STEPS,
+} from "@/containers/projects/new/sidebar";
 
 import { Card } from "@/components/ui/card";
 
+export const useFormValues = () => {
+  const { getValues } = useFormContext<CreateCustomProjectForm>();
+
+  return {
+    ...getValues(),
+    ...useWatch(),
+  };
+};
+
 export default function ProjectForm({ onSubmit }: { onSubmit: () => void }) {
   const form = useFormContext<CreateCustomProjectForm>();
   const { activity } = form.getValues();
 
   return (
     <form className="w-full space-y-8" onSubmit={onSubmit}>
-      <div className="flex flex-col gap-3">
-        <Card className="flex flex-1 flex-col" variant="secondary">
+      <div className="flex flex-col gap-3" id="custom-project-steps-container">
+        <Card
+          className="flex flex-1 flex-col"
+          variant="secondary"
+          id={PROJECT_SETUP_STEPS[0].slug}
+        >
           <SetupProjectForm />
         </Card>
-        <Card className="flex flex-1 flex-col" variant="secondary">
+        <Card
+          className="flex flex-1 flex-col"
+          variant="secondary"
+          id={PROJECT_SETUP_STEPS[1].slug}
+        >
           <AssumptionsProjectForm />
         </Card>
-        <Card className="flex flex-1 flex-col" variant="secondary">
+        <Card
+          className="flex flex-1 flex-col"
+          variant="secondary"
+          id={PROJECT_SETUP_STEPS[2].slug}
+        >
           <CostInputsOverridesProjectForm />
         </Card>
         {activity === ACTIVITY.RESTORATION && (
-          <Card className="flex flex-1 flex-col" variant="secondary">
+          <Card
+            className="flex flex-1 flex-col"
+            variant="secondary"
+            id={RESTORATION_STEPS[0].slug}
+          >
             <RestorationPlanProjectForm />
           </Card>
         )}
diff --git a/client/src/containers/projects/form/restoration-plan/index.tsx b/client/src/containers/projects/form/restoration-plan/index.tsx
index 1f49f95e..40d318ee 100644
--- a/client/src/containers/projects/form/restoration-plan/index.tsx
+++ b/client/src/containers/projects/form/restoration-plan/index.tsx
@@ -1,6 +1,6 @@
 import { useEffect, useMemo } from "react";
 
-import { useFormContext, useWatch } from "react-hook-form";
+import { useFormContext } from "react-hook-form";
 
 import {
   flexRender,
@@ -11,6 +11,7 @@ import {
 import { client } from "@/lib/query-client";
 import { queryKeys } from "@/lib/query-keys";
 
+import { useFormValues } from "@/containers/projects/form";
 import { COLUMNS } from "@/containers/projects/form/restoration-plan/columns";
 import { CreateCustomProjectForm } from "@/containers/projects/form/setup";
 
@@ -29,20 +30,9 @@ import {
   TableRow,
 } from "@/components/ui/table";
 
-const useFormValues = () => {
-  const { getValues } = useFormContext<CreateCustomProjectForm>();
-
-  return {
-    ...getValues(),
-    ...useWatch(),
-  };
-};
-
 export default function RestorationPlanProjectForm() {
   const form = useFormContext<CreateCustomProjectForm>();
 
-  const formValues = useFormValues();
-
   const {
     ecosystem,
     activity,
@@ -55,7 +45,7 @@ export default function RestorationPlanProjectForm() {
       // @ts-expect-error fix later
       restorationYearlyBreakdown,
     },
-  } = formValues;
+  } = useFormValues();
 
   const { queryKey } = queryKeys.customProjects.assumptions({
     ecosystem,
diff --git a/client/src/containers/projects/new/header.tsx b/client/src/containers/projects/new/header.tsx
index 318e1f70..a92a6705 100644
--- a/client/src/containers/projects/new/header.tsx
+++ b/client/src/containers/projects/new/header.tsx
@@ -16,7 +16,7 @@ export default function Header() {
   const router = useRouter();
 
   return (
-    <div className="flex items-center justify-between py-3 pr-6">
+    <div className="flex h-16 items-center justify-between py-3 pr-6">
       <div className="flex items-center space-x-2">
         <SidebarTrigger />
         <h2 className="text-2xl font-medium">Custom project</h2>
diff --git a/client/src/containers/projects/new/index.tsx b/client/src/containers/projects/new/index.tsx
index d902a571..e7c026ff 100644
--- a/client/src/containers/projects/new/index.tsx
+++ b/client/src/containers/projects/new/index.tsx
@@ -1,5 +1,7 @@
 "use client";
 
+import { useEffect, useRef } from "react";
+
 import { FormProvider, useForm } from "react-hook-form";
 
 import { zodResolver } from "@hookform/resolvers/zod";
@@ -15,6 +17,7 @@ import {
   CreateCustomProjectSchema,
   LOSS_RATE_USED,
 } from "@shared/schemas/custom-projects/create-custom-project.schema";
+import { ExtractAtomValue, useSetAtom } from "jotai";
 
 import { client } from "@/lib/query-client";
 import { queryKeys } from "@/lib/query-keys";
@@ -25,6 +28,7 @@ import ProjectForm from "@/containers/projects/form";
 import { CreateCustomProjectForm } from "@/containers/projects/form/setup";
 import Header from "@/containers/projects/new/header";
 import ProjectSidebar from "@/containers/projects/new/sidebar";
+import { formStepAtom } from "@/containers/projects/store";
 
 import { ScrollArea } from "@/components/ui/scroll-area";
 
@@ -144,6 +148,9 @@ export const onSubmit = async (data: CreateCustomProjectForm) => {
 };
 
 export default function CreateCustomProject() {
+  const ref = useRef<HTMLDivElement>(null);
+  const setIntersecting = useSetAtom(formStepAtom);
+
   const { queryKey } = queryKeys.customProjects.countries;
   const { data: countryOptions } =
     client.customProjects.getAvailableCountries.useQuery(
@@ -192,12 +199,43 @@ export default function CreateCustomProject() {
     },
     mode: "all",
   });
+  const activity = methods.watch("activity");
+
+  useEffect(() => {
+    if (!ref.current) return;
+
+    const observer = new IntersectionObserver(
+      (entries) => {
+        entries.forEach((entry) => {
+          if (entry.isIntersecting) {
+            const sectionSlug = entry.target.id as ExtractAtomValue<
+              typeof formStepAtom
+            >;
+
+            setIntersecting(sectionSlug);
+          }
+        });
+      },
+      {
+        root: ref.current,
+        threshold: 0.4,
+      },
+    );
+
+    const sections = Array.from(
+      ref.current.querySelector("#custom-project-steps-container")?.children ||
+        [],
+    );
+    sections.forEach((section) => observer.observe(section));
+
+    return () => observer.disconnect();
+  }, [setIntersecting, activity]);
 
   return (
     <FormProvider {...methods}>
       <div className="flex flex-1 flex-col">
         <Header />
-        <div className="flex flex-1 gap-3 overflow-hidden">
+        <div className="flex flex-1 gap-3 overflow-hidden" ref={ref}>
           <ProjectSidebar />
           <div className="mb-4 flex-1">
             <ScrollArea className="flex h-full gap-3 pr-6">
diff --git a/client/src/containers/projects/new/sidebar.tsx b/client/src/containers/projects/new/sidebar.tsx
index 5ba87cb6..11b081b2 100644
--- a/client/src/containers/projects/new/sidebar.tsx
+++ b/client/src/containers/projects/new/sidebar.tsx
@@ -1,52 +1,73 @@
 "use client";
 
+import { useMemo } from "react";
+
 import Link from "next/link";
-import { useSearchParams } from "next/navigation";
 
+import { ACTIVITY } from "@shared/entities/activity.enum";
+import { useAtomValue } from "jotai/index";
 import { InfoIcon } from "lucide-react";
 
+import { useFormValues } from "@/containers/projects/form";
+import { formStepAtom } from "@/containers/projects/store";
+
 import { Button } from "@/components/ui/button";
 import { Card } from "@/components/ui/card";
 
-const PROJECT_SETUP_STEPS = [
+export const PROJECT_SETUP_STEPS = [
   {
     name: "Project setup",
-    link: "/projects/new?step=setup",
+    slug: "setup",
     optional: false,
   },
   {
     name: "Assumptions",
-    link: "/projects/new?step=assumptions",
+    slug: "assumptions",
     optional: true,
   },
   {
     name: "Cost inputs overrides",
-    link: "/projects/new?step=cost-inputs-overrides",
+    slug: "cost-inputs-overrides",
     optional: true,
   },
-];
+] as const;
+
+export const RESTORATION_STEPS = [
+  {
+    name: "Restoration plan",
+    slug: "restoration-plan",
+    optional: true,
+  },
+] as const;
 
 export default function ProjectSidebar() {
-  const searchParams = useSearchParams();
-  const currentStep = searchParams.get("step");
+  const intersecting = useAtomValue(formStepAtom);
+
+  const { activity } = useFormValues();
+
+  const formSteps = useMemo(
+    () => [
+      ...PROJECT_SETUP_STEPS,
+      ...(activity === ACTIVITY.RESTORATION ? RESTORATION_STEPS : []),
+    ],
+    [activity],
+  );
 
   return (
     <aside className="flex h-full max-w-[320px] flex-col justify-between pb-6">
       <ul className="flex flex-col gap-2">
-        {PROJECT_SETUP_STEPS.map((step) => (
+        {formSteps.map((step) => (
           <li key={step.name}>
             <Button
-              variant={
-                step.link?.includes(
-                  currentStep as NonNullable<typeof currentStep>,
-                ) ||
-                (!currentStep && step.name === "Project setup")
-                  ? "default"
-                  : "ghost"
-              }
+              variant={step.slug === intersecting ? "default" : "ghost"}
               asChild
+              className="w-full justify-start font-medium"
             >
-              <Link href={step.link}>
+              <Link
+                href={`#${step.slug}`}
+                aria-controls={step.slug}
+                aria-current={intersecting === step.slug ? "true" : undefined}
+              >
                 {step.name} {step.optional && <span>(optional)</span>}
               </Link>
             </Button>
diff --git a/client/src/containers/projects/store.ts b/client/src/containers/projects/store.ts
new file mode 100644
index 00000000..2cd1746d
--- /dev/null
+++ b/client/src/containers/projects/store.ts
@@ -0,0 +1,12 @@
+import { atom } from "jotai";
+
+import {
+  PROJECT_SETUP_STEPS,
+  RESTORATION_STEPS,
+} from "@/containers/projects/new/sidebar";
+
+export const formStepAtom = atom<
+  | (typeof PROJECT_SETUP_STEPS)[number]["slug"]
+  | (typeof RESTORATION_STEPS)[number]["slug"]
+  | null
+>(null);