diff --git a/frontend/src/AppBuilder/AppCanvas/Grid/Grid.jsx b/frontend/src/AppBuilder/AppCanvas/Grid/Grid.jsx
index b0302452f3..7126d404ca 100644
--- a/frontend/src/AppBuilder/AppCanvas/Grid/Grid.jsx
+++ b/frontend/src/AppBuilder/AppCanvas/Grid/Grid.jsx
@@ -54,7 +54,11 @@ import { useModuleContext } from '@/AppBuilder/_contexts/ModuleContext';
 import { useElementGuidelines } from './hooks/useElementGuidelines';
 import { RIGHT_SIDE_BAR_TAB } from '../../RightSideBar/rightSidebarConstants';
 import ConfigHandleButton from '@/_components/ConfigHandleButton';
-import { RESTRICTED_WIDGETS_CONFIG } from '@/AppBuilder/WidgetManager/configs/restrictedWidgetsConfig';
+import { getDropTargetLabel } from '../appCanvasUtils';
+import {
+  RESTRICTED_WIDGETS_CONFIG,
+  RESTRICTED_WIDGET_SLOTS_CONFIG,
+} from '@/AppBuilder/WidgetManager/configs/restrictedWidgetsConfig';
 
 // Lazy load editor-only component to reduce viewer bundle size
 const MentionComponentInChat = lazy(() => import('../ConfigHandle/MentionComponentInChat'));
@@ -547,11 +551,13 @@ export default function Grid({ gridWidth, currentLayout, mainCanvasWidth }) {
 
       const parentId = targetSlotId?.length > 36 ? targetSlotId.slice(0, 36) : targetSlotId;
       const parentWidgetType = getComponentTypeFromId(parentId);
+      const parentSlotType = targetSlotId ? targetSlotId.split('-').pop() : undefined;
 
       let restrictedWidgetsTobeDropped =
-        RESTRICTED_WIDGETS_CONFIG?.[parentWidgetType]?.filter((widgetType) =>
-          widgetsTypeToBeDropped.includes(widgetType)
-        ) || [];
+        [
+          ...(RESTRICTED_WIDGETS_CONFIG?.[parentWidgetType] || []),
+          ...(['header', 'footer'].includes(parentSlotType) ? RESTRICTED_WIDGET_SLOTS_CONFIG : []),
+        ].filter((widgetType) => widgetsTypeToBeDropped.includes(widgetType)) || [];
 
       // Check nesting depth restrictions for all widget types in NESTING_LEVEL_LIMITS
       let nestingDepthExceeded = false;
@@ -602,7 +608,12 @@ export default function Grid({ gridWidth, currentLayout, mainCanvasWidth }) {
         } else if (isParentModuleContainer) {
           toast.error('Modules cannot be edited inside an app');
         } else if (!isParentChangeAllowed) {
-          toast.error(`${restrictedWidgetsTobeDropped} is not compatible as a child component of ${parentWidgetType}`);
+          toast.error(
+            `${restrictedWidgetsTobeDropped} is not compatible as a child component of ${getDropTargetLabel(
+              parentWidgetType,
+              parentSlotType
+            )}`
+          );
         }
       }
 
@@ -1069,7 +1080,12 @@ export default function Grid({ gridWidth, currentLayout, mainCanvasWidth }) {
               if (isParentModuleContainer) {
                 toast.error('Modules cannot be edited inside an app');
               } else if (!isModalToCanvas) {
-                toast.error(`${dragged.widgetType} is not compatible as a child component of ${target.widgetType}`);
+                toast.error(
+                  `${dragged.widgetType} is not compatible as a child component of ${getDropTargetLabel(
+                    target.widgetType,
+                    target.slotType
+                  )}`
+                );
               }
             }
 
diff --git a/frontend/src/AppBuilder/AppCanvas/Grid/gridUtils.js b/frontend/src/AppBuilder/AppCanvas/Grid/gridUtils.js
index f7f59c4c25..0fb5494b2d 100644
--- a/frontend/src/AppBuilder/AppCanvas/Grid/gridUtils.js
+++ b/frontend/src/AppBuilder/AppCanvas/Grid/gridUtils.js
@@ -728,7 +728,9 @@ export const updateDashedBordersOnDragResize = (targetId, moveableControlBoxClas
 
 export const isDroppingRestrictedWidget = (target, dragged) => {
   const restrictedWidgetsOnTarget = RESTRICTED_WIDGETS_CONFIG?.[target.widgetType] || [];
-  const restrictedWidgetsOnTargetSlot = RESTRICTED_WIDGET_SLOTS_CONFIG?.[target.slotType] || [];
+  const restrictedWidgetsOnTargetSlot = ['header', 'footer'].includes(target.slotType)
+    ? RESTRICTED_WIDGET_SLOTS_CONFIG
+    : [];
 
   const restrictedWidgets = [...restrictedWidgetsOnTarget, ...restrictedWidgetsOnTargetSlot];
   return restrictedWidgets.includes(dragged.widgetType);
diff --git a/frontend/src/AppBuilder/AppCanvas/appCanvasUtils.js b/frontend/src/AppBuilder/AppCanvas/appCanvasUtils.js
index 597ebd6c94..129591e8fe 100644
--- a/frontend/src/AppBuilder/AppCanvas/appCanvasUtils.js
+++ b/frontend/src/AppBuilder/AppCanvas/appCanvasUtils.js
@@ -340,6 +340,9 @@ export const getParentWidgetFromId = (parentType, parentId) => {
   return parentType;
 };
 
+export const getDropTargetLabel = (widgetType, slotType) =>
+  slotType === 'header' || slotType === 'footer' ? slotType : widgetType;
+
 export const getTabId = (parentId) => {
   return parentId.split('-').slice(0, -1).join('-');
 };
diff --git a/frontend/src/AppBuilder/WidgetManager/configs/restrictedWidgetsConfig.js b/frontend/src/AppBuilder/WidgetManager/configs/restrictedWidgetsConfig.js
index 51e12c1d18..692a080070 100644
--- a/frontend/src/AppBuilder/WidgetManager/configs/restrictedWidgetsConfig.js
+++ b/frontend/src/AppBuilder/WidgetManager/configs/restrictedWidgetsConfig.js
@@ -12,7 +12,31 @@ export const RESTRICTED_WIDGETS_CONFIG = {
   Table: ['Kanban'],
 };
 
-export const RESTRICTED_WIDGET_SLOTS_CONFIG = {
-  header: ['Calendar', 'Kanban', 'Table', 'Listview', 'Container', 'Accordion'],
-  footer: ['Calendar', 'Kanban', 'Table', 'Listview', 'Container', 'Accordion'],
-};
+export const RESTRICTED_WIDGET_SLOTS_CONFIG = [
+  'Form',
+  'Container',
+  'Listview',
+  'Tabs',
+  'Kanban',
+  'Calendar',
+  'Chart',
+  'Accordion',
+  'Map',
+  'IFrame',
+  'KeyValuePair',
+  'RichTextEditor',
+  'Timeline',
+  'JSONExplorer',
+  'JSONEditor',
+  'Html',
+  'CodeEditor',
+  'Chat',
+  'TreeSelect',
+  'PDF',
+  'Camera',
+  'QrScanner',
+  'Text',
+  'TextArea',
+  'AudioRecorder',
+  'CustomComponent',
+];
diff --git a/frontend/src/AppBuilder/_stores/slices/componentsSlice.js b/frontend/src/AppBuilder/_stores/slices/componentsSlice.js
index 84700791e5..623bfed749 100644
--- a/frontend/src/AppBuilder/_stores/slices/componentsSlice.js
+++ b/frontend/src/AppBuilder/_stores/slices/componentsSlice.js
@@ -11,6 +11,7 @@ import { deepClone } from '@/_helpers/utilities/utils.helpers';
 import { cloneDeep, merge, set as lodashSet, isEmpty } from 'lodash';
 import {
   computeComponentName,
+  getDropTargetLabel,
   getAllChildComponents,
   getParentWidgetFromId,
 } from '@/AppBuilder/AppCanvas/appCanvasUtils';
@@ -19,7 +20,10 @@ import { RIGHT_SIDE_BAR_TAB } from '@/AppBuilder/RightSideBar/rightSidebarConsta
 import { DEFAULT_COMPONENT_STRUCTURE } from './resolvedSlice';
 import { savePageChanges } from './pageMenuSlice';
 import { toast } from 'react-hot-toast';
-import { RESTRICTED_WIDGETS_CONFIG } from '@/AppBuilder/WidgetManager/configs/restrictedWidgetsConfig';
+import {
+  RESTRICTED_WIDGETS_CONFIG,
+  RESTRICTED_WIDGET_SLOTS_CONFIG,
+} from '@/AppBuilder/WidgetManager/configs/restrictedWidgetsConfig';
 import moment from 'moment';
 import { getDateTimeFormat } from '@/_helpers/appUtils';
 import { findHighestLevelofSelection } from '@/AppBuilder/AppCanvas/Grid/gridUtils';
@@ -1225,10 +1229,16 @@ export const createComponentsSlice = (set, get) => ({
     const transformedParentId = parentId?.length > 36 ? parentId.slice(0, 36) : parentId;
     let parentType = getComponentTypeFromId(transformedParentId, moduleId);
     const parentWidget = getParentWidgetFromId(parentType, parentId);
-    const restrictedWidgets = RESTRICTED_WIDGETS_CONFIG?.[parentWidget] || [];
+    const parentSlotType = parentId ? parentId.split('-').pop() : undefined;
+    const restrictedWidgets = [
+      ...(RESTRICTED_WIDGETS_CONFIG?.[parentWidget] || []),
+      ...(['header', 'footer'].includes(parentSlotType) ? RESTRICTED_WIDGET_SLOTS_CONFIG : []),
+    ];
     const isParentChangeAllowed = !restrictedWidgets.includes(currentWidget);
     if (!isParentChangeAllowed) {
-      toast.error(`${currentWidget} is not compatible as a child component of ${parentWidget}`);
+      toast.error(
+        `${currentWidget} is not compatible as a child component of ${getDropTargetLabel(parentWidget, parentSlotType)}`
+      );
       return false;
     }
 
@@ -1280,7 +1290,8 @@ export const createComponentsSlice = (set, get) => ({
           moduleId
         ) === false
       ) {
-        return false;
+        resolve(false);
+        return;
       }
       const newComponents = buildComponentDefinition(componentDefinitions, moduleId);