diff --git a/src/grading-settings/GradingSettings.jsx b/src/grading-settings/GradingSettings.jsx
index 79234b603e..cda1a6278c 100644
--- a/src/grading-settings/GradingSettings.jsx
+++ b/src/grading-settings/GradingSettings.jsx
@@ -1,51 +1,59 @@
-import React, { useEffect, useState } from 'react';
-import { useDispatch, useSelector } from 'react-redux';
-import PropTypes from 'prop-types';
-import { injectIntl, intlShape } from '@edx/frontend-platform/i18n';
+import { useIntl } from '@edx/frontend-platform/i18n';
 import {
-  Container, Layout, Button, StatefulButton,
+  Button, Container, Layout, StatefulButton,
 } from '@openedx/paragon';
-import { CheckCircle, Warning, Add as IconAdd } from '@openedx/paragon/icons';
-
-import { useModel } from '../generic/model-store';
+import { Add as IconAdd, CheckCircle, Warning } from '@openedx/paragon/icons';
+import {
+  useCourseSettings,
+  useGradingSettings,
+  useGradingSettingUpdater,
+} from 'CourseAuthoring/grading-settings/data/apiHooks';
+import PropTypes from 'prop-types';
+import React, { useEffect, useState } from 'react';
+import { Helmet } from 'react-helmet';
+import { STATEFUL_BUTTON_STATES } from '../constants';
 import AlertMessage from '../generic/alert-message';
-import { RequestStatus } from '../data/constants';
 import InternetConnectionAlert from '../generic/internet-connection-alert';
-import SubHeader from '../generic/sub-header/SubHeader';
+
+import { useModel } from '../generic/model-store';
 import SectionSubHeader from '../generic/section-sub-header';
-import { STATEFUL_BUTTON_STATES } from '../constants';
-import {
-  getGradingSettings,
-  getCourseAssignmentLists,
-  getSavingStatus,
-  getLoadingStatus,
-  getCourseSettings,
-} from './data/selectors';
-import { fetchGradingSettings, sendGradingSetting, fetchCourseSettingsQuery } from './data/thunks';
-import GradingScale from './grading-scale/GradingScale';
-import GradingSidebar from './grading-sidebar';
-import messages from './messages';
+import SubHeader from '../generic/sub-header/SubHeader';
+import getPageHeadTitle from '../generic/utils';
 import AssignmentSection from './assignment-section';
 import CreditSection from './credit-section';
 import DeadlineSection from './deadline-section';
+import GradingScale from './grading-scale/GradingScale';
+import GradingSidebar from './grading-sidebar';
 import { useConvertGradeCutoffs, useUpdateGradingData } from './hooks';
-import getPageHeadTitle from '../generic/utils';
+import messages from './messages';
+
+const GradingSettings = ({ courseId }) => {
+  const intl = useIntl();
+  const {
+    data: gradingSettings,
+    isLoading: isGradingSettingsLoading,
+  } = useGradingSettings(courseId);
+  const {
+    data: courseSettingsData,
+    isLoading: isCourseSettingsLoading,
+  } = useCourseSettings(courseId);
+  const {
+    mutate: updateGradingSettings,
+    isLoading: savePending,
+    isSuccess: savingStatus,
+    isError: savingFailed,
+  } = useGradingSettingUpdater(courseId);
+
+  const courseAssignmentLists = gradingSettings?.courseAssignmentLists;
+  const courseGradingDetails = gradingSettings?.courseDetails;
 
-const GradingSettings = ({ intl, courseId }) => {
-  const gradingSettingsData = useSelector(getGradingSettings);
-  const courseSettingsData = useSelector(getCourseSettings);
-  const courseAssignmentLists = useSelector(getCourseAssignmentLists);
-  const savingStatus = useSelector(getSavingStatus);
-  const loadingStatus = useSelector(getLoadingStatus);
   const [showSuccessAlert, setShowSuccessAlert] = useState(false);
-  const dispatch = useDispatch();
-  const isLoading = loadingStatus === RequestStatus.IN_PROGRESS;
+  const isLoading = isCourseSettingsLoading || isGradingSettingsLoading;
   const [isQueryPending, setIsQueryPending] = useState(false);
   const [showOverrideInternetConnectionAlert, setOverrideInternetConnectionAlert] = useState(false);
   const [eligibleGrade, setEligibleGrade] = useState(null);
 
-  const courseDetails = useModel('courseDetails', courseId);
-  document.title = getPageHeadTitle(courseDetails?.name, intl.formatMessage(messages.headingTitle));
+  const courseName = useModel('courseDetails', courseId)?.name;
 
   const {
     graders,
@@ -60,7 +68,7 @@ const GradingSettings = ({ intl, courseId }) => {
     handleResetPageData,
     handleAddAssignment,
     handleRemoveAssignment,
-  } = useUpdateGradingData(gradingSettingsData, setOverrideInternetConnectionAlert, setShowSuccessAlert);
+  } = useUpdateGradingData(courseGradingDetails, setOverrideInternetConnectionAlert, setShowSuccessAlert);
 
   const {
     gradeLetters,
@@ -69,28 +77,22 @@ const GradingSettings = ({ intl, courseId }) => {
   } = useConvertGradeCutoffs(gradeCutoffs);
 
   useEffect(() => {
-    if (savingStatus === RequestStatus.SUCCESSFUL) {
+    if (savingStatus) {
       setShowSuccessAlert(!showSuccessAlert);
       setShowSavePrompt(!showSavePrompt);
       setTimeout(() => setShowSuccessAlert(false), 15000);
       setIsQueryPending(!isQueryPending);
       window.scrollTo({ top: 0, behavior: 'smooth' });
     }
-  }, [savingStatus]);
-
-  useEffect(() => {
-    dispatch(fetchGradingSettings(courseId));
-    dispatch(fetchCourseSettingsQuery(courseId));
-  }, [courseId]);
+  }, [savePending]);
 
   if (isLoading) {
-    // eslint-disable-next-line react/jsx-no-useless-fragment
-    return <></>;
+    return null;
   }
 
   const handleQueryProcessing = () => {
     setShowSuccessAlert(false);
-    dispatch(sendGradingSetting(courseId, gradingData));
+    updateGradingSettings(gradingData);
   };
 
   const handleSendGradingSettingsData = () => {
@@ -110,11 +112,14 @@ const GradingSettings = ({ intl, courseId }) => {
       default: intl.formatMessage(messages.buttonSaveText),
       pending: intl.formatMessage(messages.buttonSavingText),
     },
-    disabledStates: [RequestStatus.PENDING],
+    disabledStates: [STATEFUL_BUTTON_STATES.pending],
   };
 
   return (
     <>
+      <Helmet>
+        <title>{getPageHeadTitle(courseName, intl.formatMessage(messages.headingTitle))}</title>
+      </Helmet>
       <Container size="xl" className="grading px-4">
         <div className="mt-5">
           <AlertMessage
@@ -156,6 +161,7 @@ const GradingSettings = ({ intl, courseId }) => {
                       resetDataRef={resetDataRef}
                       setOverrideInternetConnectionAlert={setOverrideInternetConnectionAlert}
                       setEligibleGrade={setEligibleGrade}
+                      defaultGradeDesignations={gradingSettings?.defaultGradeDesignations}
                     />
                   </section>
                   {courseSettingsData.creditEligibilityEnabled && courseSettingsData.isCreditCourse && (
@@ -226,7 +232,7 @@ const GradingSettings = ({ intl, courseId }) => {
       <div className="alert-toast">
         {showOverrideInternetConnectionAlert && (
           <InternetConnectionAlert
-            isFailed={savingStatus === RequestStatus.FAILED}
+            isFailed={savingFailed}
             isQueryPending={isQueryPending}
             onQueryProcessing={handleQueryProcessing}
             onInternetConnectionFailed={handleInternetConnectionFailed}
@@ -263,8 +269,7 @@ const GradingSettings = ({ intl, courseId }) => {
 };
 
 GradingSettings.propTypes = {
-  intl: intlShape.isRequired,
   courseId: PropTypes.string.isRequired,
 };
 
-export default injectIntl(GradingSettings);
+export default GradingSettings;
diff --git a/src/grading-settings/GradingSettings.test.jsx b/src/grading-settings/GradingSettings.test.jsx
index 955b33d016..84b574367f 100644
--- a/src/grading-settings/GradingSettings.test.jsx
+++ b/src/grading-settings/GradingSettings.test.jsx
@@ -1,14 +1,17 @@
-import React from 'react';
-import { IntlProvider, injectIntl } from '@edx/frontend-platform/i18n';
-import { AppProvider } from '@edx/frontend-platform/react';
 import { initializeMockApp } from '@edx/frontend-platform';
 import { getAuthenticatedHttpClient } from '@edx/frontend-platform/auth';
-import { render, waitFor, fireEvent } from '@testing-library/react';
+import { injectIntl, IntlProvider } from '@edx/frontend-platform/i18n';
+import { AppProvider } from '@edx/frontend-platform/react';
+import { QueryClient, QueryClientProvider } from '@tanstack/react-query';
+import {
+  act, fireEvent, render, screen,
+} from '@testing-library/react';
 import MockAdapter from 'axios-mock-adapter';
+import React from 'react';
 
 import initializeStore from '../store';
-import { getGradingSettingsApiUrl } from './data/api';
 import gradingSettings from './__mocks__/gradingSettings';
+import { getCourseSettingsApiUrl, getGradingSettingsApiUrl } from './data/api';
 import GradingSettings from './GradingSettings';
 import messages from './messages';
 
@@ -16,10 +19,14 @@ const courseId = '123';
 let axiosMock;
 let store;
 
+const queryClient = new QueryClient();
+
 const RootWrapper = () => (
   <AppProvider store={store}>
     <IntlProvider locale="en" messages={{}}>
-      <GradingSettings intl={injectIntl} courseId={courseId} />
+      <QueryClientProvider client={queryClient}>
+        <GradingSettings intl={injectIntl} courseId={courseId} />
+      </QueryClientProvider>
     </IntlProvider>
   </AppProvider>
 );
@@ -28,10 +35,7 @@ describe('<GradingSettings />', () => {
   beforeEach(() => {
     initializeMockApp({
       authenticatedUser: {
-        userId: 3,
-        username: 'abc123',
-        administrator: true,
-        roles: [],
+        userId: 3, username: 'abc123', administrator: true, roles: [],
       },
     });
 
@@ -40,52 +44,72 @@ describe('<GradingSettings />', () => {
     axiosMock
       .onGet(getGradingSettingsApiUrl(courseId))
       .reply(200, gradingSettings);
+    axiosMock
+      .onPost(getGradingSettingsApiUrl(courseId))
+      .reply(200, {});
+    axiosMock.onGet(getCourseSettingsApiUrl(courseId))
+      .reply(200, {});
+    render(<RootWrapper />);
   });
 
-  it('should render without errors', async () => {
-    const { getByText, getAllByText } = render(<RootWrapper />);
-    await waitFor(() => {
-      const gradingElements = getAllByText(messages.headingTitle.defaultMessage);
-      const gradingTitle = gradingElements[0];
-      expect(getByText(messages.headingSubtitle.defaultMessage)).toBeInTheDocument();
-      expect(gradingTitle).toBeInTheDocument();
-      expect(getByText(messages.policy.defaultMessage)).toBeInTheDocument();
-      expect(getByText(messages.policiesDescription.defaultMessage)).toBeInTheDocument();
+  function testSaving() {
+    const saveBtn = screen.getByText(messages.buttonSaveText.defaultMessage);
+    expect(saveBtn).toBeInTheDocument();
+    fireEvent.click(saveBtn);
+    expect(screen.getByText(messages.buttonSavingText.defaultMessage)).toBeInTheDocument();
+  }
+
+  function setOnlineStatus(isOnline) {
+    jest.spyOn(navigator, 'onLine', 'get').mockReturnValue(isOnline);
+    act(() => {
+      window.dispatchEvent(new window.Event(isOnline ? 'online' : 'offline'));
     });
+  }
+
+  it('should render without errors', async () => {
+    const gradingElements = await screen.findAllByText(messages.headingTitle.defaultMessage);
+    const gradingTitle = gradingElements[0];
+    expect(screen.getByText(messages.headingSubtitle.defaultMessage)).toBeInTheDocument();
+    expect(gradingTitle).toBeInTheDocument();
+    expect(screen.getByText(messages.policy.defaultMessage)).toBeInTheDocument();
+    expect(screen.getByText(messages.policiesDescription.defaultMessage)).toBeInTheDocument();
   });
 
   it('should update segment input value and show save alert', async () => {
-    const { getByTestId, getAllByTestId } = render(<RootWrapper />);
-    await waitFor(() => {
-      const segmentInputs = getAllByTestId('grading-scale-segment-input');
-      expect(segmentInputs).toHaveLength(5);
-      const segmentInput = segmentInputs[1];
-      fireEvent.change(segmentInput, { target: { value: 'Test' } });
-      expect(segmentInput).toHaveValue('Test');
-      expect(getByTestId('grading-settings-save-alert')).toBeVisible();
-    });
+    const segmentInputs = await screen.findAllByTestId('grading-scale-segment-input');
+    expect(segmentInputs).toHaveLength(5);
+    const segmentInput = segmentInputs[1];
+    fireEvent.change(segmentInput, { target: { value: 'Test' } });
+    expect(segmentInput).toHaveValue('Test');
+    expect(screen.getByTestId('grading-settings-save-alert')).toBeVisible();
   });
 
   it('should update grading scale segment input value on change and cancel the action', async () => {
-    const { getByText, getAllByTestId } = render(<RootWrapper />);
-    await waitFor(() => {
-      const segmentInputs = getAllByTestId('grading-scale-segment-input');
-      const segmentInput = segmentInputs[1];
-      fireEvent.change(segmentInput, { target: { value: 'Test' } });
-      fireEvent.click(getByText(messages.buttonCancelText.defaultMessage));
-      expect(segmentInput).toHaveValue('a');
-    });
+    const segmentInputs = await screen.findAllByTestId('grading-scale-segment-input');
+    const segmentInput = segmentInputs[1];
+    fireEvent.change(segmentInput, { target: { value: 'Test' } });
+    fireEvent.click(screen.getByText(messages.buttonCancelText.defaultMessage));
+    expect(segmentInput).toHaveValue('a');
   });
+
   it('should save segment input changes and display saving message', async () => {
-    const { getByText, getAllByTestId } = render(<RootWrapper />);
-    await waitFor(() => {
-      const segmentInputs = getAllByTestId('grading-scale-segment-input');
-      const segmentInput = segmentInputs[1];
-      fireEvent.change(segmentInput, { target: { value: 'Test' } });
-      const saveBtn = getByText(messages.buttonSaveText.defaultMessage);
-      expect(saveBtn).toBeInTheDocument();
-      fireEvent.click(saveBtn);
-      expect(getByText(messages.buttonSavingText.defaultMessage)).toBeInTheDocument();
-    });
+    const segmentInputs = await screen.findAllByTestId('grading-scale-segment-input');
+    const segmentInput = segmentInputs[1];
+    fireEvent.change(segmentInput, { target: { value: 'Test' } });
+    testSaving();
+  });
+
+  it('should handle being offline gracefully', async () => {
+    setOnlineStatus(false);
+    const segmentInputs = await screen.findAllByTestId('grading-scale-segment-input');
+    const segmentInput = segmentInputs[1];
+    fireEvent.change(segmentInput, { target: { value: 'Test' } });
+    const saveBtn = screen.getByText(messages.buttonSaveText.defaultMessage);
+    expect(saveBtn).toBeInTheDocument();
+    fireEvent.click(saveBtn);
+    expect(screen.getByText(/studio's having trouble saving your work/i)).toBeInTheDocument();
+    expect(screen.queryByText(messages.buttonSavingText.defaultMessage)).not.toBeInTheDocument();
+    setOnlineStatus(true);
+    testSaving();
   });
 });
diff --git a/src/grading-settings/data/apiHooks.js b/src/grading-settings/data/apiHooks.js
new file mode 100644
index 0000000000..e55664f783
--- /dev/null
+++ b/src/grading-settings/data/apiHooks.js
@@ -0,0 +1,26 @@
+import { useMutation, useQuery, useQueryClient } from '@tanstack/react-query';
+import { getCourseSettings, getGradingSettings, sendGradingSettings } from './api';
+
+export const useGradingSettings = (courseId) => (
+  useQuery({
+    queryKey: ['gradingSettings', courseId],
+    queryFn: () => getGradingSettings(courseId),
+  })
+);
+
+export const useCourseSettings = (courseId) => (
+  useQuery({
+    queryKey: ['courseSettings', courseId],
+    queryFn: () => getCourseSettings(courseId),
+  })
+);
+
+export const useGradingSettingUpdater = (courseId) => {
+  const queryClient = useQueryClient();
+  return useMutation({
+    mutationFn: (settings) => sendGradingSettings(courseId, settings),
+    onSettled: () => {
+      queryClient.invalidateQueries({ queryKey: ['gradingSettings', courseId] });
+    },
+  });
+};
diff --git a/src/grading-settings/data/selectors.js b/src/grading-settings/data/selectors.js
deleted file mode 100644
index 7745167b8d..0000000000
--- a/src/grading-settings/data/selectors.js
+++ /dev/null
@@ -1,13 +0,0 @@
-const getLoadingStatus = (state) => state.gradingSettings.loadingStatus;
-const getGradingSettings = (state) => state.gradingSettings.gradingSettings.courseDetails;
-const getCourseAssignmentLists = (state) => state.gradingSettings.gradingSettings.courseAssignmentLists;
-const getSavingStatus = (state) => state.gradingSettings.savingStatus;
-const getCourseSettings = (state) => state.gradingSettings.courseSettings;
-
-export {
-  getLoadingStatus,
-  getGradingSettings,
-  getCourseAssignmentLists,
-  getSavingStatus,
-  getCourseSettings,
-};
diff --git a/src/grading-settings/data/slice.js b/src/grading-settings/data/slice.js
deleted file mode 100644
index 8d0ba50891..0000000000
--- a/src/grading-settings/data/slice.js
+++ /dev/null
@@ -1,43 +0,0 @@
-/* eslint-disable no-param-reassign */
-import { createSlice } from '@reduxjs/toolkit';
-
-import { RequestStatus } from '../../data/constants';
-
-const slice = createSlice({
-  name: 'gradingSettings',
-  initialState: {
-    loadingStatus: RequestStatus.IN_PROGRESS,
-    savingStatus: '',
-    gradingSettings: {},
-    courseSettings: {},
-  },
-  reducers: {
-    updateLoadingStatus: (state, { payload }) => {
-      state.loadingStatus = payload.status;
-    },
-    updateSavingStatus: (state, { payload }) => {
-      state.savingStatus = payload.status;
-    },
-    fetchGradingSettingsSuccess: (state, { payload }) => {
-      Object.assign(state.gradingSettings, payload);
-    },
-    sendGradingSettingsSuccess: (state, { payload }) => {
-      Object.assign(state.gradingSettings, payload);
-    },
-    fetchCourseSettingsSuccess: (state, { payload }) => {
-      Object.assign(state.courseSettings, payload);
-    },
-  },
-});
-
-export const {
-  updateLoadingStatus,
-  updateSavingStatus,
-  fetchGradingSettingsSuccess,
-  sendGradingSettingsSuccess,
-  fetchCourseSettingsSuccess,
-} = slice.actions;
-
-export const {
-  reducer,
-} = slice;
diff --git a/src/grading-settings/data/thunks.js b/src/grading-settings/data/thunks.js
deleted file mode 100644
index b7106eb390..0000000000
--- a/src/grading-settings/data/thunks.js
+++ /dev/null
@@ -1,55 +0,0 @@
-import { RequestStatus } from '../../data/constants';
-import {
-  getGradingSettings,
-  sendGradingSettings,
-  getCourseSettings,
-} from './api';
-import {
-  sendGradingSettingsSuccess,
-  updateLoadingStatus,
-  updateSavingStatus,
-  fetchGradingSettingsSuccess,
-  fetchCourseSettingsSuccess,
-} from './slice';
-
-export function fetchGradingSettings(courseId) {
-  return async (dispatch) => {
-    dispatch(updateLoadingStatus({ status: RequestStatus.IN_PROGRESS }));
-    try {
-      const settingValues = await getGradingSettings(courseId);
-      dispatch(fetchGradingSettingsSuccess(settingValues));
-      dispatch(updateLoadingStatus({ status: RequestStatus.SUCCESSFUL }));
-    } catch (error) {
-      dispatch(updateLoadingStatus({ status: RequestStatus.FAILED }));
-    }
-  };
-}
-
-export function sendGradingSetting(courseId, settings) {
-  return async (dispatch) => {
-    dispatch(updateSavingStatus({ status: RequestStatus.IN_PROGRESS }));
-    try {
-      const settingValues = await sendGradingSettings(courseId, settings);
-      dispatch(sendGradingSettingsSuccess(settingValues));
-      dispatch(updateSavingStatus({ status: RequestStatus.SUCCESSFUL }));
-    } catch (error) {
-      dispatch(updateLoadingStatus({ status: RequestStatus.FAILED }));
-    }
-  };
-}
-
-export function fetchCourseSettingsQuery(courseId) {
-  return async (dispatch) => {
-    dispatch(updateLoadingStatus({ status: RequestStatus.IN_PROGRESS }));
-
-    try {
-      const settingsValues = await getCourseSettings(courseId);
-      dispatch(fetchCourseSettingsSuccess(settingsValues));
-      dispatch(updateLoadingStatus({ status: RequestStatus.SUCCESSFUL }));
-      return true;
-    } catch (error) {
-      dispatch(updateLoadingStatus({ status: RequestStatus.FAILED }));
-      return false;
-    }
-  };
-}
diff --git a/src/grading-settings/grading-scale/GradingScale.jsx b/src/grading-settings/grading-scale/GradingScale.jsx
index 7ba2e43767..2e610cbc42 100644
--- a/src/grading-settings/grading-scale/GradingScale.jsx
+++ b/src/grading-settings/grading-scale/GradingScale.jsx
@@ -1,19 +1,18 @@
-import React, { useEffect, useState } from 'react';
-import PropTypes from 'prop-types';
+import { useIntl } from '@edx/frontend-platform/i18n';
 import { Icon, IconButtonWithTooltip } from '@openedx/paragon';
 import { Add as IconAdd } from '@openedx/paragon/icons';
-import { injectIntl, intlShape } from '@edx/frontend-platform/i18n';
+import PropTypes from 'prop-types';
+import React, { useEffect, useState } from 'react';
+import { GradingScaleHandle, GradingScaleSegment, GradingScaleTicks } from './components';
+import messages from './messages';
 
 import { useRanger } from './react-ranger';
-import messages from './messages';
 import { convertGradeData, MAXIMUM_SCALE_LENGTH } from './utils';
-import { GradingScaleTicks, GradingScaleHandle, GradingScaleSegment } from './components';
 
-const DEFAULT_LETTERS = ['A', 'B', 'C', 'D'];
+const DEFAULT_GRADE_LETTERS = ['A', 'B', 'C', 'D'];
 const getDefaultPassText = intl => intl.formatMessage(messages.defaultPassText);
 
 const GradingScale = ({
-  intl,
   showSavePrompt,
   gradeCutoffs,
   setShowSuccessAlert,
@@ -23,7 +22,9 @@ const GradingScale = ({
   sortedGrades,
   setOverrideInternetConnectionAlert,
   setEligibleGrade,
+  defaultGradeDesignations,
 }) => {
+  const intl = useIntl();
   const [gradingSegments, setGradingSegments] = useState(sortedGrades);
   const [letters, setLetters] = useState(gradeLetters);
   const [convertedResult, setConvertedResult] = useState({});
@@ -55,6 +56,15 @@ const GradingScale = ({
 
   const addNewGradingSegment = () => {
     setGradingSegments(prevSegments => {
+      if (prevSegments.length >= 5) {
+        const segSize = MAXIMUM_SCALE_LENGTH / (prevSegments.length + 1);
+        return Array.from({ length: prevSegments.length + 1 }).map((_, i) => (
+          {
+            current: 100 - i * segSize,
+            previous: 100 - (i + 1) * segSize,
+          }
+        ));
+      }
       const firstSegment = prevSegments[prevSegments.length - 1];
       const secondSegment = prevSegments[prevSegments.length - 2];
       const newCurrentValue = Math.ceil((secondSegment.current - secondSegment.previous) / 2);
@@ -81,12 +91,12 @@ const GradingScale = ({
       ];
     });
 
-    const nextIndex = (letters.length % DEFAULT_LETTERS.length);
+    const nextIndex = (letters.length % defaultGradeDesignations.length);
 
     if (gradingSegments.length === 2) {
-      setLetters([DEFAULT_LETTERS[0], DEFAULT_LETTERS[nextIndex]]);
+      setLetters([defaultGradeDesignations[0], defaultGradeDesignations[nextIndex]]);
     } else {
-      setLetters(prevLetters => [...prevLetters, DEFAULT_LETTERS[nextIndex]]);
+      setLetters(prevLetters => [...prevLetters, defaultGradeDesignations[nextIndex]]);
     }
   };
 
@@ -191,7 +201,7 @@ const GradingScale = ({
       <IconButtonWithTooltip
         tooltipPlacement="top"
         tooltipContent={intl.formatMessage(messages.addNewSegmentButtonAltText)}
-        disabled={gradingSegments.length >= 5}
+        disabled={gradingSegments.length >= (defaultGradeDesignations.length + 1)}
         data-testid="grading-scale-btn-add-segment"
         className="mr-3"
         src={IconAdd}
@@ -230,7 +240,6 @@ const GradingScale = ({
 };
 
 GradingScale.propTypes = {
-  intl: intlShape.isRequired,
   showSavePrompt: PropTypes.func.isRequired,
   gradeCutoffs: PropTypes.objectOf(PropTypes.number).isRequired,
   gradeLetters: PropTypes.arrayOf(PropTypes.string).isRequired,
@@ -245,6 +254,11 @@ GradingScale.propTypes = {
     }),
   ).isRequired,
   setEligibleGrade: PropTypes.func.isRequired,
+  defaultGradeDesignations: PropTypes.arrayOf(PropTypes.string),
+};
+
+GradingScale.defaultProps = {
+  defaultGradeDesignations: DEFAULT_GRADE_LETTERS,
 };
 
-export default injectIntl(GradingScale);
+export default GradingScale;
diff --git a/src/grading-settings/grading-scale/GradingScale.scss b/src/grading-settings/grading-scale/GradingScale.scss
index 9c85b8c91e..f8eb30ce3e 100644
--- a/src/grading-settings/grading-scale/GradingScale.scss
+++ b/src/grading-settings/grading-scale/GradingScale.scss
@@ -9,6 +9,7 @@
     height: 3.125rem;
     width: 100%;
     border: 1px solid var(--pgn-color-black);
+    overflow: hidden;
 
     .grading-scale-tick {
       .grading-scale-tick-number {
@@ -81,7 +82,6 @@
       .grading-scale-segment-content {
         display: flex;
         flex-direction: column;
-        margin-right: 1.25rem;
         margin-top: .375rem;
         font-size: .7rem;
         white-space: nowrap;
diff --git a/src/grading-settings/grading-scale/components/GradingScaleSegment.jsx b/src/grading-settings/grading-scale/components/GradingScaleSegment.jsx
index 412e936d89..364814768a 100644
--- a/src/grading-settings/grading-scale/components/GradingScaleSegment.jsx
+++ b/src/grading-settings/grading-scale/components/GradingScaleSegment.jsx
@@ -1,13 +1,12 @@
+import { useIntl } from '@edx/frontend-platform/i18n';
 import { Button } from '@openedx/paragon';
 import React from 'react';
-import { injectIntl, intlShape } from '@edx/frontend-platform/i18n';
 import PropTypes from 'prop-types';
+import messages from '../messages';
 
 import { getLettersOnLongScale, getLettersOnShortScale } from '../utils';
-import messages from '../messages';
 
 const GradingScaleSegment = ({
-  intl,
   idx,
   value,
   getSegmentProps,
@@ -15,53 +14,62 @@ const GradingScaleSegment = ({
   letters,
   gradingSegments,
   removeGradingSegment,
-}) => (
-  <div
-    key={value}
-    className={`grading-scale-segment segment-${idx - 1}`}
-    data-testid="grading-scale-segment"
-    {...getSegmentProps()}
-  >
-    <div className="grading-scale-segment-content">
-      {gradingSegments.length === 2 && (
-        <input
-          className="grading-scale-segment-content-title m-0"
-          data-testid="grading-scale-segment-input"
-          value={getLettersOnShortScale(idx, letters, intl)}
-          onChange={e => handleLetterChange(e, idx)}
-          disabled={idx === gradingSegments.length}
-        />
-      )}
-      {gradingSegments.length > 2 && (
-        <input
-          className="grading-scale-segment-content-title m-0"
-          data-testid="grading-scale-segment-input"
-          value={getLettersOnLongScale(idx, letters, gradingSegments)}
-          onChange={e => handleLetterChange(e, idx)}
-          disabled={idx === gradingSegments.length}
-        />
+}) => {
+  const intl = useIntl();
+  const prevValue = gradingSegments[idx === 0 ? 0 : idx - 1]?.previous ?? 0;
+  const segmentRightMargin = (value - prevValue) < 6 ? '0.125rem' : '1.25rem';
+  return (
+    <div
+      key={value}
+      className={`grading-scale-segment segment-${idx - 1}`}
+      data-testid="grading-scale-segment"
+      {...getSegmentProps()}
+    >
+      <div
+        className="grading-scale-segment-content"
+        style={{
+          marginRight: segmentRightMargin,
+        }}
+      >
+        {gradingSegments.length === 2 && (
+          <input
+            className="grading-scale-segment-content-title m-0"
+            data-testid="grading-scale-segment-input"
+            value={getLettersOnShortScale(idx, letters, intl)}
+            onChange={e => handleLetterChange(e, idx)}
+            disabled={idx === gradingSegments.length}
+          />
+        )}
+        {gradingSegments.length > 2 && (
+          <input
+            className="grading-scale-segment-content-title m-0"
+            data-testid="grading-scale-segment-input"
+            value={getLettersOnLongScale(idx, letters, gradingSegments)}
+            onChange={e => handleLetterChange(e, idx)}
+            disabled={idx === gradingSegments.length}
+          />
+        )}
+        <span className="grading-scale-segment-content-number m-0">
+          {gradingSegments[idx === 0 ? 0 : idx - 1]?.previous} - {value === 100 ? value : value - 1}
+        </span>
+      </div>
+      {idx !== gradingSegments.length && idx - 1 !== 0 && (
+        <Button
+          variant="link"
+          size="inline"
+          className="grading-scale-segment-btn-remove"
+          data-testid="grading-scale-btn-remove"
+          type="button"
+          onClick={() => removeGradingSegment(idx)}
+        >
+          {intl.formatMessage(messages.removeSegmentButtonText)}
+        </Button>
       )}
-      <span className="grading-scale-segment-content-number m-0">
-        {gradingSegments[idx === 0 ? 0 : idx - 1]?.previous} - {value === 100 ? value : value - 1}
-      </span>
     </div>
-    {idx !== gradingSegments.length && idx - 1 !== 0 && (
-      <Button
-        variant="link"
-        size="inline"
-        className="grading-scale-segment-btn-remove"
-        data-testid="grading-scale-btn-remove"
-        type="button"
-        onClick={() => removeGradingSegment(idx)}
-      >
-        {intl.formatMessage(messages.removeSegmentButtonText)}
-      </Button>
-    )}
-  </div>
-);
+  );
+};
 
 GradingScaleSegment.propTypes = {
-  intl: intlShape.isRequired,
   idx: PropTypes.number.isRequired,
   value: PropTypes.number.isRequired,
   getSegmentProps: PropTypes.func.isRequired,
@@ -76,4 +84,4 @@ GradingScaleSegment.propTypes = {
   letters: PropTypes.arrayOf(PropTypes.string).isRequired,
 };
 
-export default injectIntl(GradingScaleSegment);
+export default GradingScaleSegment;
diff --git a/src/store.js b/src/store.js
index 661862f608..bf761aadf7 100644
--- a/src/store.js
+++ b/src/store.js
@@ -10,7 +10,6 @@ import { reducer as discussionsReducer } from './pages-and-resources/discussions
 import { reducer as pagesAndResourcesReducer } from './pages-and-resources/data/slice';
 import { reducer as customPagesReducer } from './custom-pages/data/slice';
 import { reducer as advancedSettingsReducer } from './advanced-settings/data/slice';
-import { reducer as gradingSettingsReducer } from './grading-settings/data/slice';
 import { reducer as studioHomeReducer } from './studio-home/data/slice';
 import { reducer as scheduleAndDetailsReducer } from './schedule-and-details/data/slice';
 import { reducer as filesReducer } from './files-and-videos/files-page/data/slice';
@@ -40,7 +39,6 @@ export default function initializeStore(preloadedState = undefined) {
       pagesAndResources: pagesAndResourcesReducer,
       scheduleAndDetails: scheduleAndDetailsReducer,
       advancedSettings: advancedSettingsReducer,
-      gradingSettings: gradingSettingsReducer,
       studioHome: studioHomeReducer,
       models: modelsReducer,
       live: liveReducer,