diff --git a/frontend/src/AppBuilder/AppCanvas/Container.jsx b/frontend/src/AppBuilder/AppCanvas/Container.jsx
index e622e1a2cd..fcc0a95d4e 100644
--- a/frontend/src/AppBuilder/AppCanvas/Container.jsx
+++ b/frontend/src/AppBuilder/AppCanvas/Container.jsx
@@ -20,6 +20,7 @@ import NoComponentCanvasContainer from './NoComponentCanvasContainer';
 import { RIGHT_SIDE_BAR_TAB } from '../RightSideBar/rightSidebarConstants';
 import { isPDFSupported } from '@/_helpers/appUtils';
 import toast from 'react-hot-toast';
+import useSortedComponents from '../_hooks/useSortedComponents';
 
 //TODO: Revisit the logic of height (dropRef)
 
@@ -146,6 +147,8 @@ export const Container = React.memo(
       [setLastCanvasClickPosition]
     );
 
+    const sortedComponents = useSortedComponents(components, currentLayout, id);
+
     return (
       <div
         // {...(config.COMMENT_FEATURE_ENABLE && showComments && { onClick: handleAddThread })}
@@ -197,7 +200,7 @@ export const Container = React.memo(
           data-parent-type={id === 'canvas' ? 'canvas' : componentType}
           style={{ height: !showEmptyContainer ? '100%' : 'auto' }} //TODO: remove hardcoded height & canvas condition
         >
-          {components.map((id) => (
+          {sortedComponents.map((id) => (
             <WidgetWrapper
               id={id}
               key={id}
diff --git a/frontend/src/AppBuilder/AppCanvas/Grid/Grid.jsx b/frontend/src/AppBuilder/AppCanvas/Grid/Grid.jsx
index 44f148a000..174c68b475 100644
--- a/frontend/src/AppBuilder/AppCanvas/Grid/Grid.jsx
+++ b/frontend/src/AppBuilder/AppCanvas/Grid/Grid.jsx
@@ -67,6 +67,7 @@ export default function Grid({ gridWidth, currentLayout }) {
   const prevDragParentId = useRef(null);
   const newDragParentId = useRef(null);
   const [isGroupDragging, setIsGroupDragging] = useState(false);
+  const setReorderContainerChildren = useStore((state) => state.setReorderContainerChildren, shallow);
 
   useEffect(() => {
     const selectedSet = new Set(selectedComponents);
@@ -536,6 +537,7 @@ export default function Grid({ gridWidth, currentLayout }) {
           })
         );
       }
+      setReorderContainerChildren(draggedOverElemId ?? 'canvas');
     } catch (error) {
       console.error('Error dragging group', error);
     }
@@ -696,6 +698,7 @@ export default function Grid({ gridWidth, currentLayout }) {
               resizeData.gw = _gridWidth;
             }
             handleResizeStop([resizeData]);
+            setReorderContainerChildren(currentWidget?.parent ?? 'canvas');
           } catch (error) {
             console.error('ResizeEnd error ->', error);
           }
@@ -775,6 +778,11 @@ export default function Grid({ gridWidth, currentLayout }) {
                 ev.target.style.transform = `translate(${posX}px, ${posY}px)`;
               });
             }
+
+            const groupParentId =
+              boxList.find(({ id }) => id === groupResizeDataRef.current[0].target.id)?.parent ?? 'canvas';
+            setReorderContainerChildren(groupParentId);
+
             groupResizeDataRef.current = [];
             reloadGrid();
           } catch (error) {
@@ -841,6 +849,8 @@ export default function Grid({ gridWidth, currentLayout }) {
               useStore.getState().setDraggingComponentId(null);
               isDraggingRef.current = false;
             }
+
+            const oldParentId = boxList.find((b) => b.id === e.target.id)?.parent ?? 'canvas';
             prevDragParentId.current = null;
             newDragParentId.current = null;
             setDragParentId(null);
@@ -880,6 +890,12 @@ export default function Grid({ gridWidth, currentLayout }) {
             // Apply transform for smooth transition
             e.target.style.transform = `translate(${left}px, ${top}px)`;
 
+            // Force reordering of conatiner if the parent has not changed
+            const newParentId = target.slotId === 'real-canvas' ? 'canvas' : target.slotId;
+            if (oldParentId === newParentId) {
+              setReorderContainerChildren(newParentId);
+            }
+
             // Select the dragged component after drop
             setTimeout(() => setSelectedComponents([dragged.id]));
           } catch (error) {
diff --git a/frontend/src/AppBuilder/_hooks/useSortedComponents.js b/frontend/src/AppBuilder/_hooks/useSortedComponents.js
new file mode 100644
index 0000000000..9877206444
--- /dev/null
+++ b/frontend/src/AppBuilder/_hooks/useSortedComponents.js
@@ -0,0 +1,49 @@
+import { useMemo, useRef } from 'react';
+import useStore from '@/AppBuilder/_stores/store';
+import { shallow } from 'zustand/shallow';
+
+const useSortedComponents = (components, currentLayout, id) => {
+  const getCurrentPageComponents = useStore((state) => state.getCurrentPageComponents, shallow);
+  const reorderContainerChildren = useStore((state) => state.reorderContainerChildren, shallow);
+  const prevForceUpdateRef = useRef(0);
+  const prevComponentsOrder = useRef(components);
+
+  // Function to sort the components based on position in container for tab navigation
+  const sortedComponents = useMemo(() => {
+    const { triggerUpdate, containerId } = reorderContainerChildren;
+
+    // If a forced update occurred for a different container, return the previous order
+    const isForcedUpdate = prevForceUpdateRef.current !== triggerUpdate;
+    if (isForcedUpdate) {
+      prevForceUpdateRef.current = triggerUpdate;
+      if (containerId !== id) {
+        return prevComponentsOrder.current;
+      }
+    }
+
+    const currentPageComponents = getCurrentPageComponents();
+
+    const newComponentsOrder = [...components].sort((a, b) => {
+      const aTop = currentPageComponents?.[a]?.layouts?.[currentLayout]?.top;
+      const bTop = currentPageComponents?.[b]?.layouts?.[currentLayout]?.top;
+      if (aTop !== bTop) {
+        return aTop - bTop;
+      } else {
+        const aLeft = currentPageComponents?.[a]?.layouts?.[currentLayout]?.left;
+        const bLeft = currentPageComponents?.[b]?.layouts?.[currentLayout]?.left;
+        if (aLeft !== bLeft) {
+          return aLeft - bLeft;
+        }
+        return 0;
+      }
+    });
+
+    prevComponentsOrder.current = newComponentsOrder;
+    return newComponentsOrder;
+    // eslint-disable-next-line react-hooks/exhaustive-deps
+  }, [components, currentLayout, reorderContainerChildren.triggerUpdate, id]);
+
+  return sortedComponents;
+};
+
+export default useSortedComponents;
diff --git a/frontend/src/AppBuilder/_stores/slices/gridSlice.js b/frontend/src/AppBuilder/_stores/slices/gridSlice.js
index 642266a32b..37de5cf81a 100644
--- a/frontend/src/AppBuilder/_stores/slices/gridSlice.js
+++ b/frontend/src/AppBuilder/_stores/slices/gridSlice.js
@@ -8,6 +8,10 @@ const initialState = {
   lastCanvasIdClick: '',
   lastCanvasClickPosition: null,
   draggingComponentId: null,
+  reorderContainerChildren: {
+    containerId: null,
+    triggerUpdate: 0,
+  },
 };
 
 export const createGridSlice = (set, get) => ({
@@ -73,4 +77,10 @@ export const createGridSlice = (set, get) => ({
   setLastCanvasClickPosition: (position) => {
     set({ lastCanvasClickPosition: position });
   },
+  setReorderContainerChildren: (containerId) => {
+    // Function to trigger reordering of specific container for tab navigation
+    set((state) => ({
+      reorderContainerChildren: { containerId, triggerUpdate: state.reorderContainerChildren.triggerUpdate + 1 },
+    }));
+  },
 });