diff --git a/common/src/app/common/files/changes.cljc b/common/src/app/common/files/changes.cljc
index 0b3f3d28b..7bf9a01ad 100644
--- a/common/src/app/common/files/changes.cljc
+++ b/common/src/app/common/files/changes.cljc
@@ -410,6 +410,11 @@
       [:type [:= :add-token-set]]
       [:token-set ::ctot/token-set]]]
 
+    [:add-token-sets
+     [:map {:title "AddTokenSetsChange"}
+      [:type [:= :add-token-sets]]
+      [:token-sets [:sequential ::ctot/token-set]]]]
+
     [:mod-token-set
      [:map {:title "ModTokenSetChange"}
       [:type [:= :mod-token-set]]
@@ -427,6 +432,11 @@
       [:type [:= :del-token-set]]
       [:name :string]]]
 
+    [:del-token-set-path
+     [:map {:title "DelTokenSetPathChange"}
+      [:type [:= :del-token-set-path]]
+      [:path :string]]]
+
     [:set-tokens-lib
      [:map {:title "SetTokensLib"}
       [:type [:= :set-tokens-lib]]
@@ -1046,6 +1056,12 @@
                                 (ctob/ensure-tokens-lib)
                                 (ctob/add-set (ctob/make-token-set token-set)))))
 
+(defmethod process-change :add-token-sets
+  [data {:keys [token-sets]}]
+  (update data :tokens-lib #(-> %
+                                (ctob/ensure-tokens-lib)
+                                (ctob/add-sets (map ctob/make-token-set token-sets)))))
+
 (defmethod process-change :mod-token-set
   [data {:keys [name token-set]}]
   (update data :tokens-lib (fn [lib]
@@ -1066,6 +1082,12 @@
                                 (ctob/ensure-tokens-lib)
                                 (ctob/delete-set name))))
 
+(defmethod process-change :del-token-set-path
+  [data {:keys [path]}]
+  (update data :tokens-lib #(-> %
+                                (ctob/ensure-tokens-lib)
+                                (ctob/delete-set-path path))))
+
 ;; === Operations
 
 (def ^:private decode-shape
diff --git a/common/src/app/common/files/changes_builder.cljc b/common/src/app/common/files/changes_builder.cljc
index 9da21cfda..0640c784f 100644
--- a/common/src/app/common/files/changes_builder.cljc
+++ b/common/src/app/common/files/changes_builder.cljc
@@ -818,15 +818,15 @@
       (update :undo-changes conj {:type :mod-token-set :name (:name token-set) :token-set (or prev-token-set token-set)})
       (apply-changes-local)))
 
-(defn delete-token-set
-  [changes token-set-name]
+(defn delete-token-set-path
+  [changes token-set-path]
   (assert-library! changes)
   (let [library-data (::library-data (meta changes))
-        prev-token-theme (some-> (get library-data :tokens-lib)
-                                 (ctob/get-set token-set-name))]
+        prev-token-sets (some-> (get library-data :tokens-lib)
+                                (ctob/get-path-sets token-set-path))]
     (-> changes
-        (update :redo-changes conj {:type :del-token-set :name token-set-name})
-        (update :undo-changes conj {:type :add-token-set :token-set prev-token-theme})
+        (update :redo-changes conj {:type :del-token-set-path :path token-set-path})
+        (update :undo-changes conj {:type :add-token-sets :token-sets prev-token-sets})
         (apply-changes-local))))
 
 (defn move-token-set-before
diff --git a/common/src/app/common/types/tokens_lib.cljc b/common/src/app/common/types/tokens_lib.cljc
index 827af70aa..d05033979 100644
--- a/common/src/app/common/types/tokens_lib.cljc
+++ b/common/src/app/common/types/tokens_lib.cljc
@@ -183,6 +183,14 @@
 
 (def set-separator "/")
 
+(defn join-set-path [set-path]
+  (join-path set-path set-separator))
+
+(defn split-set-prefix [set-path]
+  (some->> set-path
+           (re-matches #"^([SG]-)(.*)")
+           (rest)))
+
 (defn add-set-prefix [set-name]
   (str set-prefix set-name))
 
@@ -199,14 +207,29 @@
         set-name (add-set-prefix (last paths))]
     (conj set-path set-name)))
 
+(defn split-token-set-path [token-set-path]
+  (split-path token-set-path set-separator))
+
 (defn split-token-set-name [token-set-name]
-  (-> (split-path token-set-name set-separator)
+  (-> (split-token-set-path token-set-name)
       (add-token-set-paths-prefix)))
 
 (defn get-token-set-path [token-set]
   (let [path (get-path token-set set-separator)]
     (add-token-set-paths-prefix path)))
 
+(defn set-name->set-path-string [set-name]
+  (-> (split-token-set-name set-name)
+      (join-set-path)))
+
+(defn set-path->set-name [set-path]
+  (->> (split-token-set-path set-path)
+       (map (fn [path-part]
+              (or (-> (split-set-prefix path-part)
+                      (second))
+                  path-part)))
+       (join-set-path)))
+
 (defn tokens-tree
   "Convert tokens into a nested tree with their `:name` as the path.
   Optionally use `update-token-fn` option to transform the token."
@@ -234,16 +257,27 @@
    {:tokens-tree {} :ids {}} tokens))
 
 (defprotocol ITokenSet
+  (update-name [_ set-name] "change a token set name while keeping the path")
   (add-token [_ token] "add a token at the end of the list")
   (update-token [_ token-name f] "update a token in the list")
   (delete-token [_ token-name] "delete a token from the list")
   (get-token [_ token-name] "return token by token-name")
   (get-tokens [_] "return an ordered sequence of all tokens in the set")
+  (get-set-path [_] "returns name of set converted to the path with prefix identifiers")
   (get-tokens-tree [_] "returns a tree of tokens split & nested by their name path")
   (get-dtcg-tokens-tree [_] "returns tokens tree formated to the dtcg spec"))
 
 (defrecord TokenSet [name description modified-at tokens]
   ITokenSet
+  (update-name [_ set-name]
+    (TokenSet. (-> (split-token-set-path name)
+                   (drop-last)
+                   (concat [set-name])
+                   (join-set-path))
+               description
+               (dt/now)
+               tokens))
+
   (add-token [_ token]
     (dm/assert! "expected valid token" (check-token! token))
     (TokenSet. name
@@ -278,6 +312,9 @@
   (get-tokens [_]
     (vals tokens))
 
+  (get-set-path [_]
+    (set-name->set-path-string name))
+
   (get-tokens-tree [_]
     (tokens-tree tokens))
 
@@ -325,11 +362,14 @@
   (add-sets [_ token-set] "add a collection of sets to the library, at the end")
   (update-set [_ set-name f] "modify a set in the ilbrary")
   (delete-set [_ set-name] "delete a set in the library")
+  (delete-set-path [_ set-path] "delete a set in the library")
   (move-set-before [_ set-name before-set-name] "move a set with `set-name` before a set with `before-set-name` in the library.
 When `before-set-name` is nil, move set to bottom")
   (set-count [_] "get the total number if sets in the library")
   (get-set-tree [_] "get a nested tree of all sets in the library")
+  (get-in-set-tree [_ path] "get `path` in nested tree of all sets in the library")
   (get-sets [_] "get an ordered sequence of all sets in the library")
+  (get-path-sets [_ path] "get an ordered sequence of sets at `path` in the library")
   (get-ordered-set-names [_] "get an ordered sequence of all sets names in the library")
   (get-set [_ set-name] "get one set looking for name")
   (get-neighbor-set-name [_ set-name index-offset] "get neighboring set name offset by `index-offset`"))
@@ -381,6 +421,8 @@ When `before-set-name` is nil, move set to bottom")
   (set-sets [_ set-names] "set the active token sets")
   (disable-set [_ set-name] "disable set in theme")
   (toggle-set [_ set-name] "toggle a set enabled / disabled in the theme")
+
+  (update-set-name [_ prev-set-name set-name] "update set-name from `prev-set-name` to `set-name` when it exists")
   (theme-path [_] "get `token-theme-path` from theme")
   (theme-matches-group-name [_ group name] "if a theme matches the given group & name")
   (hidden-temporary-theme? [_] "if a theme is the (from the user ui) hidden temporary theme"))
@@ -403,6 +445,16 @@ When `before-set-name` is nil, move set to bottom")
                      (disj sets set-name)
                      (conj sets set-name))))
 
+  (update-set-name [this prev-set-name set-name]
+    (if (get sets prev-set-name)
+      (TokenTheme. name
+                   group
+                   description
+                   is-source
+                   (dt/now)
+                   (conj (disj sets prev-set-name) set-name))
+      this))
+
   (theme-path [_]
     (token-theme-path group name))
 
@@ -569,36 +621,49 @@ When `before-set-name` is nil, move set to bottom")
 
   (add-sets [this token-sets]
     (reduce
-       (fn [lib set]
-         (add-set lib set))
-       this token-sets))
+     (fn [lib set]
+       (add-set lib set))
+     this token-sets))
 
   (update-set [this set-name f]
     (let [path (split-token-set-name set-name)
           set  (get-in sets path)]
       (if set
-        (let [set'  (-> (make-token-set (f set))
-                        (assoc :modified-at (dt/now)))
-              path' (get-token-set-path set')]
+        (let [set' (-> (make-token-set (f set))
+                       (assoc :modified-at (dt/now)))
+              path' (get-token-set-path set')
+              name-changed? (not= (:name set) (:name set'))]
           (check-token-set! set')
-          (TokensLib. (if (= (:name set) (:name set'))
-                        (d/oassoc-in sets path set')
-                        (-> sets
+          (if name-changed?
+            (TokensLib. (-> sets
                             (d/oassoc-in-before path path' set')
-                            (d/dissoc-in path)))
-                      themes
-                      active-themes))
+                            (d/dissoc-in path))
+                        (walk/postwalk
+                          (fn [form]
+                            (if (instance? TokenTheme form)
+                              (update-set-name form (:name set) (:name set'))
+                              form))
+                          themes)
+                        active-themes)
+            (TokensLib. (d/oassoc-in sets path set')
+                        themes
+                        active-themes)))
         this)))
 
-  (delete-set [_ set-name]
-    (let [path (split-token-set-name set-name)]
+  (delete-set-path [_ set-path]
+    (let [path (split-token-set-path set-path)
+          set-node (get-in sets path)
+          set-group? (not (instance? TokenSet set-node))]
       (TokensLib. (d/dissoc-in sets path)
-                  (walk/postwalk
-                   (fn [form]
-                     (if (instance? TokenTheme form)
-                       (disable-set form set-name)
-                       form))
-                   themes)
+                  ;; TODO: When deleting a set-group, also deactivate the child sets
+                  (if set-group?
+                    themes
+                    (walk/postwalk
+                     (fn [form]
+                       (if (instance? TokenTheme form)
+                         (disable-set form set-path)
+                         form))
+                     themes))
                   active-themes)))
 
   ;; TODO Handle groups and nesting
@@ -620,10 +685,18 @@ When `before-set-name` is nil, move set to bottom")
   (get-set-tree [_]
     sets)
 
+  (get-in-set-tree [_ path]
+    (get-in sets path))
+
   (get-sets [_]
     (->> (tree-seq d/ordered-map? vals sets)
          (filter (partial instance? TokenSet))))
 
+  (get-path-sets [_ path]
+    (some->> (get-in sets (split-token-set-path path))
+             (tree-seq d/ordered-map? vals)
+             (filter (partial instance? TokenSet))))
+
   (get-ordered-set-names [this]
     (map :name (get-sets this)))
 
diff --git a/frontend/src/app/main/data/tokens.cljs b/frontend/src/app/main/data/tokens.cljs
index eda14e846..dbd3358c7 100644
--- a/frontend/src/app/main/data/tokens.cljs
+++ b/frontend/src/app/main/data/tokens.cljs
@@ -95,6 +95,14 @@
     (update [_ state]
       (wtts/assoc-selected-token-set-id state id))))
 
+(defn set-selected-token-set-id-from-name
+  [token-set-name]
+  (ptk/reify ::set-selected-token-set-id-from-name
+    ptk/UpdateEvent
+    (update [_ state]
+      (->> (ctob/set-name->set-path-string token-set-name)
+           (wtts/assoc-selected-token-set-id state)))))
+
 (defn create-token-theme [token-theme]
   (let [new-token-theme token-theme]
     (ptk/reify ::create-token-theme
@@ -157,7 +165,7 @@
         (let [changes (-> (pcb/empty-changes it)
                           (pcb/add-token-set new-token-set))]
           (rx/of
-           (set-selected-token-set-id (:name new-token-set))
+           (set-selected-token-set-id-from-name (:name new-token-set))
            (dch/commit-changes changes)))))))
 
 (defn update-token-set [set-name token-set]
@@ -169,7 +177,7 @@
             changes (-> (pcb/empty-changes it)
                         (pcb/update-token-set token-set prev-token-set))]
         (rx/of
-         (set-selected-token-set-id (:name token-set))
+         (set-selected-token-set-id-from-name (:name token-set))
          (dch/commit-changes changes))))))
 
 (defn toggle-token-set [{:keys [token-set-name]}]
@@ -202,7 +210,7 @@
                                             (ctob/get-sets)
                                             (first)
                                             (:name)
-                                            (set-selected-token-set-id))
+                                            (set-selected-token-set-id-from-name))
             changes (-> (pcb/empty-changes it)
                         (pcb/with-library-data data)
                         (pcb/set-tokens-lib lib))]
@@ -211,14 +219,14 @@
          update-token-set-change
          (wtu/update-workspace-tokens))))))
 
-(defn delete-token-set [token-set-name]
-  (ptk/reify ::delete-token-set
+(defn delete-token-set-path [token-set-path]
+  (ptk/reify ::delete-token-set-path
     ptk/WatchEvent
     (watch [it state _]
       (let [data (get state :workspace-data)
             changes (-> (pcb/empty-changes it)
                         (pcb/with-library-data data)
-                        (pcb/delete-token-set token-set-name))]
+                        (pcb/delete-token-set-path token-set-path))]
         (rx/of
          (dch/commit-changes changes)
          (wtu/update-workspace-tokens))))))
@@ -268,7 +276,7 @@
                         (pcb/update-token (pcb/empty-changes) (:name token-set) token prev-token)
                         (pcb/add-token (pcb/empty-changes) (:name token-set) token)))]
         (rx/of
-         (set-selected-token-set-id token-set-name)
+         (set-selected-token-set-id-from-name token-set-name)
          (dch/commit-changes changes))))))
 
 (defn delete-token
diff --git a/frontend/src/app/main/refs.cljs b/frontend/src/app/main/refs.cljs
index 104a504b5..f8ad9fd07 100644
--- a/frontend/src/app/main/refs.cljs
+++ b/frontend/src/app/main/refs.cljs
@@ -493,9 +493,15 @@
 (def workspace-selected-token-set-id
   (l/derived wtts/get-selected-token-set-id st/state))
 
+(def workspace-token-set-group-selected?
+  (l/derived wtts/token-group-selected? st/state))
+
 (def workspace-ordered-token-sets
   (l/derived #(or (some-> % ctob/get-sets) []) tokens-lib))
 
+(def workspace-token-sets-tree
+  (l/derived (d/nilf ctob/get-set-tree) tokens-lib))
+
 (def workspace-active-theme-paths
   (l/derived (d/nilf ctob/get-active-theme-paths) tokens-lib))
 
diff --git a/frontend/src/app/main/ui/workspace/tokens/sets.cljs b/frontend/src/app/main/ui/workspace/tokens/sets.cljs
index 02f670393..43d29f158 100644
--- a/frontend/src/app/main/ui/workspace/tokens/sets.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/sets.cljs
@@ -7,14 +7,13 @@
 (ns app.main.ui.workspace.tokens.sets
   (:require-macros [app.main.style :as stl])
   (:require
-   [app.main.data.notifications :as ntf]
+   [app.common.types.tokens-lib :as ctob]
    [app.main.data.tokens :as wdt]
    [app.main.refs :as refs]
    [app.main.store :as st]
    [app.main.ui.ds.buttons.icon-button :refer [icon-button*]]
    [app.main.ui.ds.foundations.assets.icon :refer [icon*] :as ic]
    [app.main.ui.ds.foundations.typography.text :refer [text*]]
-   [app.main.ui.hooks :as h]
    [app.main.ui.workspace.tokens.sets-context :as sets-context]
    [app.util.dom :as dom]
    [app.util.i18n :refer [tr]]
@@ -25,8 +24,8 @@
 (defn on-toggle-token-set-click [token-set-name]
   (st/emit! (wdt/toggle-token-set {:token-set-name token-set-name})))
 
-(defn on-select-token-set-click [name]
-  (st/emit! (wdt/set-selected-token-set-id name)))
+(defn on-select-token-set-click [tree-path]
+  (st/emit! (wdt/set-selected-token-set-id tree-path)))
 
 (defn on-update-token-set [set-name token-set]
   (st/emit! (wdt/update-token-set set-name token-set)))
@@ -34,7 +33,7 @@
 (defn on-create-token-set [token-set]
   (st/emit! (wdt/create-token-set token-set)))
 
-(mf/defc editing-node
+(mf/defc editing-label
   [{:keys [default-value on-cancel on-submit]}]
   (let [ref (mf/use-ref)
         on-submit-valid (mf/use-fn
@@ -43,7 +42,9 @@
                              (if (or (str/empty? value)
                                      (= value default-value))
                                (on-cancel)
-                               (on-submit value)))))
+                               (do
+                                 (on-submit value)
+                                 (on-cancel))))))
         on-key-down (mf/use-fn
                      (fn [event]
                        (cond
@@ -58,136 +59,166 @@
       :auto-focus true
       :default-value default-value}]))
 
-(mf/defc sets-tree
-  [{:keys [token-set
-           token-set-active?
-           token-set-selected?
-           editing?
-           on-select
-           on-toggle
-           on-edit
-           on-submit
-           on-cancel]
-    :as _props}]
-  (let [{:keys [name _children]} token-set
-        selected? (and set? (token-set-selected? name))
-        visible? (token-set-active? name)
-        collapsed? (mf/use-state false)
-        set? true #_(= type :set)
-        group? false #_(= type :group)
-        editing-node? (editing? name)
-
+(mf/defc sets-tree-set-group
+  [{:keys [label tree-depth tree-path selected? collapsed? on-select editing? on-edit on-edit-submit]}]
+  (let [editing?' (editing? tree-path)
+        {:keys [on-create on-reset] :as ctx} (sets-context/use-context)
         on-click
         (mf/use-fn
-         (mf/deps editing-node?)
+         (mf/deps editing? tree-path)
          (fn [event]
            (dom/stop-propagation event)
-           (when-not editing-node?
-             (on-select name))))
+           (when-not (editing? tree-path)
+             (on-select tree-path))))
 
         on-context-menu
         (mf/use-fn
-         (mf/deps editing-node? name)
+         (mf/deps editing? tree-path)
          (fn [event]
            (dom/prevent-default event)
            (dom/stop-propagation event)
-           (when-not editing-node?
+           (when-not (editing? tree-path)
              (st/emit!
               (wdt/show-token-set-context-menu
                {:position (dom/get-client-position event)
-                :token-set-name name})))))
-
-        on-drag
-        (mf/use-fn
-         (mf/deps name)
-         (fn [_]
-           (when-not selected?
-             (on-select name))))
-
-        on-drop
-        (mf/use-fn
-         (mf/deps name)
-         (fn [position data]
-           (st/emit! (wdt/move-token-set (:name data) name position))))
-
-        on-submit-edit
-        (mf/use-fn
-         (mf/deps on-submit token-set)
-         #(on-submit (assoc token-set :name %)))
-
-        on-edit-name
-        (mf/use-fn
-         (fn [e]
-           (let [name (-> (dom/get-current-target e)
-                          (dom/get-data "name"))]
-             (on-edit name))))
-
-        on-toggle-set (fn [event]
-                        (dom/prevent-default event)
-                        (dom/stop-propagation event)
-                        (on-toggle name))
-
-        on-collapse (mf/use-fn #(swap! collapsed? not))
-
-
-        [dprops dref]
-        (h/use-sortable
-         :data-type "penpot/token-set"
-         :on-drag on-drag
-         :on-drop on-drop
-         :data {:name name}
-         :draggable? true)]
-    [:div {:ref dref
+                :tree-path tree-path})))))]
+    [:div {;; :ref dref
+           :role "button"
+           :style {"--tree-depth" tree-depth}
            :class (stl/css-case :set-item-container true
-                                :dnd-over (= (:over dprops) :center)
-                                :dnd-over-top (= (:over dprops) :top)
-                                :dnd-over-bot (= (:over dprops) :bot))
+                                :selected-set selected?)
            :on-click on-click
-           :on-double-click on-edit-name
            :on-context-menu on-context-menu
-           :data-name name}
-     [:div {:class (stl/css-case :set-item-group group?
-                                 :set-item-set set?
-                                 :selected-set selected?)}
-      (when group?
-        [:> icon-button* {:on-click on-collapse
-                          :aria-label (tr "labels.collapse")
-                          :icon (if @collapsed?
-                                  "arrow-right"
-                                  "arrow-down")
-                          :variant "action"}])
+           :on-double-click #(on-edit tree-path)}
+     [:> icon-button*
+      {:on-click (fn [event]
+                   (.stopPropagation event)
+                   (swap! collapsed? not))
+       :aria-label (tr "labels.collapse")
+       :icon (if @collapsed? "arrow-right" "arrow-down")
+       :variant "action"}]
+     [:> icon*
+      {:id "group"
+       :class (stl/css :icon)}]
+     (if editing?'
+       [:& editing-label
+        {:default-value label
+         :on-cancel on-reset
+         :on-create on-reset
+         :on-submit #(on-edit-submit)}]
+       [:div {:class (stl/css :set-name)} label])]))
 
-      [:> icon* {:id (if set? "document" "group")
-                 :class (stl/css :icon)}]
-      (if editing-node?
-        [:& editing-node {:default-value name
-                          :on-submit on-submit-edit
-                          :on-cancel on-cancel}]
-        [:*
-         [:div {:class (stl/css :set-name)} name]
-         (if set?
-           [:button {:on-click on-toggle-set
-                     :class (stl/css-case :checkbox-style true
-                                          :checkbox-checked-style visible?)}
-            (when visible?
-              [:> icon* {:aria-label (tr "workspace.token.select-set")
-                         :class (stl/css :check-icon)
-                         :size "s"
-                         :id ic/tick}])]
-           nil
-           #_(when (and children (not @collapsed?))
-               [:div {:class (stl/css :set-children)}
-                (for [child-id children]
-                  [:& sets-tree (assoc props :key child-id
-                                       {:key child-id}
-                                       :set-id child-id
-                                       :selected-set-id selected-token-set-id)])]))])]]))
+(mf/defc sets-tree-set
+  [{:keys [set label tree-depth tree-path selected? on-select active? on-toggle editing? on-edit on-edit-submit]}]
+  (let [set-name (.-name set)
+        {:keys [on-create on-reset] :as ctx} (sets-context/use-context)
+        editing?' (editing? tree-path)
+        active?' (active? set-name)
+        on-click
+        (mf/use-fn
+         (mf/deps editing?' tree-path)
+         (fn [event]
+           (dom/stop-propagation event)
+           (when-not editing?'
+             (on-select tree-path))))
 
-(defn warn-on-try-create-token-set-group!  []
-  (st/emit! (ntf/show {:content (tr "workspace.token.grouping-set-alert")
-                       :notification-type :toast
-                       :type :warning
-                       :timeout 3000})))
+        on-context-menu
+        (mf/use-fn
+         (mf/deps editing?' tree-path)
+         (fn [event]
+           (dom/prevent-default event)
+           (dom/stop-propagation event)
+           (when-not editing?'
+             (st/emit!
+              (wdt/show-token-set-context-menu
+               {:position (dom/get-client-position event)
+                :tree-path tree-path})))))]
+    [:div {;; :ref dref
+           :role "button"
+           :style {"--tree-depth" tree-depth}
+           :class (stl/css-case :set-item-container true
+                                :selected-set selected?)
+           :on-click on-click
+           :on-double-click #(on-edit tree-path)
+           :on-context-menu on-context-menu}
+     [:> icon*
+      {:id "document"
+       :class (stl/css-case :icon true
+                            :root-icon (not tree-depth))}]
+     (if editing?'
+       [:& editing-label
+        {:default-value label
+         :on-cancel on-reset
+         :on-create on-reset
+         :on-submit #(on-edit-submit set-name (ctob/update-name set %))}]
+       [:*
+        [:div {:class (stl/css :set-name)} label]
+        [:button {:on-click (fn [event]
+                              (dom/stop-propagation event)
+                              (on-toggle set-name))
+                  :class (stl/css-case :checkbox-style true
+                                       :checkbox-checked-style active?')}
+         (when active?'
+           [:> icon* {:aria-label (tr "workspace.token.select-set")
+                      :class (stl/css :check-icon)
+                      :size "s"
+                      :id ic/tick}])]])]))
+
+(mf/defc sets-tree
+  [{:keys [set-path set-node tree-depth tree-path on-select selected? on-toggle active? editing? on-edit on-edit-submit]
+    :or {tree-depth 0}
+    :as props}]
+  (let [[set-prefix set-path'] (some-> set-path (ctob/split-set-prefix))
+        set? (instance? ctob/TokenSet set-node)
+        set-group? (= ctob/set-group-prefix set-prefix)
+        root? (= tree-depth 0)
+        collapsed? (mf/use-state false)
+        children? (and
+                   (or root? set-group?)
+                   (not @collapsed?))]
+    [:*
+     (cond
+       root? nil
+       set?
+       [:& sets-tree-set
+        {:set set-node
+         :active? active?
+         :selected? (selected? tree-path)
+         :on-select on-select
+         :label set-path'
+         :tree-path (or tree-path set-path)
+         :tree-depth tree-depth
+         :editing? editing?
+         :on-toggle on-toggle
+         :on-edit on-edit
+         :on-edit-submit on-edit-submit}]
+       set-group?
+       [:& sets-tree-set-group
+        {:selected? (selected? tree-path)
+         :on-select on-select
+         :label set-path'
+         :collapsed? collapsed?
+         :tree-path (or tree-path set-path)
+         :tree-depth tree-depth
+         :editing? editing?
+         :on-edit on-edit
+         :on-edit-submit on-edit-submit}])
+     (when children?
+       (for [[set-path set-node] set-node
+             :let [tree-path' (str (when tree-path (str tree-path "/")) set-path)]]
+         [:& sets-tree
+          {:key tree-path'
+           :set-path set-path
+           :set-node set-node
+           :tree-depth (when-not root? (inc tree-depth))
+           :tree-path tree-path'
+           :on-select on-select
+           :selected? selected?
+           :on-toggle on-toggle
+           :active? active?
+           :editing? editing?
+           :on-edit on-edit
+           :on-edit-submit on-edit-submit}]))]))
 
 (mf/defc controlled-sets-list
   [{:keys [token-sets
@@ -200,59 +231,40 @@
            on-select
            context]
     :as _props}]
-  (let [{:keys [editing? new? on-edit on-create on-reset] :as ctx} (or context (sets-context/use-context))
-        submit-token
-        #(do
-           (on-create-token-set %)
-           (on-reset))]
+  (let [{:keys [editing? new? on-edit on-create on-reset] :as ctx} (or context (sets-context/use-context))]
     [:ul {:class (stl/css :sets-list)}
      (if (and
           (= origin "theme-modal")
           (empty? token-sets))
        [:> text* {:as "span" :typography "body-small" :class (stl/css :empty-state-message-sets)}
         (tr "workspace.token.no-sets-create")]
-       (for [token-set token-sets]
-         (when token-set
-           (let [update-token
-                 #(do
-                    (on-update-token-set (:name token-set) %)
-                    (on-reset))]
-             [:& sets-tree
-              {:key (:name token-set)
-               :token-set token-set
-               :token-set-selected? (if new? (constantly false) token-set-selected?)
-               :token-set-active? token-set-active?
-               :editing? editing?
-               :on-select on-select
-               :on-edit on-edit
-               :on-toggle on-toggle-token-set
-               :on-submit update-token
-               :on-cancel on-reset}]))))
-
-     (when new?
-       [:& sets-tree
-        {:token-set {:name ""}
-         :token-set-selected? (constantly true)
-         :token-set-active? (constantly true)
-         :editing? (constantly true)
-         :on-select (constantly nil)
-         :on-edit on-create
-         :on-submit submit-token
-         :on-cancel on-reset}])]))
+       (if (and (= origin "theme-modal")
+                (empty? token-sets))
+         [:> text* {:as "span" :typography "body-small" :class (stl/css :empty-state-message-sets)}
+          (tr "workspace.token.no-sets-create")]
+         [:& sets-tree
+          {:set-node token-sets
+           :selected? token-set-selected?
+           :on-select on-select
+           :active? token-set-active?
+           :on-toggle on-toggle-token-set
+           :editing? editing?
+           :on-edit on-edit
+           :on-edit-submit on-update-token-set}]))]))
 
 (mf/defc sets-list
   [{:keys []}]
-  (let [token-sets (mf/deref refs/workspace-ordered-token-sets)
+  (let [token-sets (mf/deref refs/workspace-token-sets-tree)
         selected-token-set-id (mf/deref refs/workspace-selected-token-set-id)
         token-set-selected? (mf/use-fn
                              (mf/deps token-sets selected-token-set-id)
-                             (fn [set-name]
-                               (= set-name selected-token-set-id)))
-        active-token-set-ids (mf/deref refs/workspace-active-set-names)
+                             (fn [tree-path]
+                               (= tree-path selected-token-set-id)))
+        active-token-set-names (mf/deref refs/workspace-active-set-names)
         token-set-active? (mf/use-fn
-                           (mf/deps active-token-set-ids)
-                           (fn [id]
-                             (get active-token-set-ids id)))]
+                           (mf/deps active-token-set-names)
+                           (fn [set-name]
+                             (get active-token-set-names set-name)))]
     [:& controlled-sets-list
      {:token-sets token-sets
       :token-set-selected? token-set-selected?
diff --git a/frontend/src/app/main/ui/workspace/tokens/sets.scss b/frontend/src/app/main/ui/workspace/tokens/sets.scss
index 24a18a77e..10c7c83f0 100644
--- a/frontend/src/app/main/ui/workspace/tokens/sets.scss
+++ b/frontend/src/app/main/ui/workspace/tokens/sets.scss
@@ -13,10 +13,14 @@
 }
 
 .set-item-container {
+  @include bodySmallTypography;
+  display: flex;
+  align-items: center;
   width: 100%;
+  min-height: $s-32;
   cursor: pointer;
   color: var(--layer-row-foreground-color);
-  padding-left: $s-20;
+  padding-left: calc($s-32 * var(--tree-depth, 0));
   border: $s-2 solid transparent;
 
   &.dnd-over-bot {
@@ -30,17 +34,6 @@
   }
 }
 
-.set-item-set,
-.set-item-group {
-  @include bodySmallTypography;
-  display: flex;
-  align-items: center;
-  min-height: $s-32;
-  width: 100%;
-  cursor: pointer;
-  color: var(--layer-row-foreground-color);
-}
-
 .set-name {
   @include textEllipsis;
   flex-grow: 1;
@@ -55,6 +48,10 @@
   padding-right: $s-4;
 }
 
+.root-icon {
+  margin-left: $s-8;
+}
+
 .checkbox-style {
   display: flex;
   justify-content: center;
@@ -76,7 +73,7 @@
   color: var(--color-background-secondary);
 }
 
-.set-item-set:hover {
+.set-item-container:hover {
   background-color: var(--layer-row-background-color-hover);
   color: var(--layer-row-foreground-color-hover);
   box-shadow: -100px 0 0 0 var(--layer-row-background-color-hover);
diff --git a/frontend/src/app/main/ui/workspace/tokens/sets_context_menu.cljs b/frontend/src/app/main/ui/workspace/tokens/sets_context_menu.cljs
index 1b396740d..4fb37428a 100644
--- a/frontend/src/app/main/ui/workspace/tokens/sets_context_menu.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/sets_context_menu.cljs
@@ -35,10 +35,10 @@
    [:span {:class (stl/css :title)} title]])
 
 (mf/defc menu
-  [{:keys [token-set-name]}]
+  [{:keys [tree-path]}]
   (let [{:keys [on-edit]} (sets-context/use-context)
-        edit-name (mf/use-fn #(on-edit token-set-name))
-        delete-set (mf/use-fn #(st/emit! (wdt/delete-token-set token-set-name)))]
+        edit-name (mf/use-fn #(on-edit tree-path))
+        delete-set (mf/use-fn #(st/emit! (wdt/delete-token-set-path tree-path)))]
     [:ul {:class (stl/css :context-list)}
      [:& menu-entry {:title (tr "labels.rename") :on-click edit-name}]
      [:& menu-entry {:title (tr "labels.delete")  :on-click delete-set}]]))
@@ -49,8 +49,7 @@
         top (+ (get-in mdata [:position :y]) 5)
         left (+ (get-in mdata [:position :x]) 5)
         width (mf/use-state 0)
-        dropdown-ref (mf/use-ref)
-        token-set-name (:token-set-name mdata)]
+        dropdown-ref (mf/use-ref)]
     (mf/use-effect
      (mf/deps mdata)
      (fn []
@@ -62,4 +61,4 @@
             :ref dropdown-ref
             :style {:top top :left left}
             :on-context-menu prevent-default}
-      [:& menu {:token-set-name token-set-name}]]]))
+      [:& menu {:tree-path (:tree-path mdata)}]]]))
diff --git a/frontend/src/app/main/ui/workspace/tokens/sidebar.cljs b/frontend/src/app/main/ui/workspace/tokens/sidebar.cljs
index 86ea7ad51..abd7f7932 100644
--- a/frontend/src/app/main/ui/workspace/tokens/sidebar.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/sidebar.cljs
@@ -41,7 +41,8 @@
    [cuerdas.core :as str]
    [okulary.core :as l]
    [rumext.v2 :as mf]
-   [shadow.resource]))
+   [shadow.resource]
+   [app.main.data.tokens :as wdt]))
 
 (def lens:token-type-open-status
   (l/derived (l/in [:workspace-tokens :open-status]) st/state))
@@ -204,7 +205,10 @@
   (let [{:keys [on-create new?]} (sets-context/use-context)
         on-click #(do
                     (on-open)
-                    (on-create))]
+                    (let [set-path (some-> (js/prompt "Token Set Path")
+                                           (str/trim))]
+                      (when-not (str/empty? set-path)
+                        (st/emit! (wdt/create-token-set {:name set-path})))))]
     (if (= style "inline")
       (when-not new?
         [:div {:class (stl/css :empty-sets-wrapper)}
@@ -219,28 +223,30 @@
                         :aria-label (tr "workspace.token.add set")}])))
 
 (mf/defc themes-sets-tab
-  []
+  [{:keys [resize-height]}]
   (let [token-sets (mf/deref refs/workspace-ordered-token-sets)
         open? (mf/use-state true)
         on-open (mf/use-fn #(reset! open? true))]
     [:& sets-context/provider {}
      [:& sets-context-menu]
-     [:div {:class (stl/css :sets-sidebar)}
-      [:& themes-header]
-      [:div {:class (stl/css :sidebar-header)}
-       [:& title-bar {:collapsable true
-                      :collapsed (not @open?)
-                      :all-clickable true
-                      :title (tr "labels.sets")
-                      :on-collapsed #(swap! open? not)}
-        [:& add-set-button {:on-open on-open
-                            :style "header"}]]]
-      (when @open?
-        [:& h/sortable-container {}
-         (when (empty? token-sets)
+     [:article {:class (stl/css :sets-section-wrapper)
+                :style {"--resize-height" (str resize-height "px")}}
+      [:div {:class (stl/css :sets-sidebar)}
+       [:& themes-header]
+       [:div {:class (stl/css :sidebar-header)}
+        [:& title-bar {:collapsable true
+                       :collapsed (not @open?)
+                       :all-clickable true
+                       :title (tr "labels.sets")
+                       :on-collapsed #(swap! open? not)}
+         [:& add-set-button {:on-open on-open
+                             :style "header"}]]]
+       (when @open?
+         (if (empty? token-sets)
            [:& add-set-button {:on-open on-open
-                               :style "inline"}])
-         [:& sets-list]])]]))
+                               :style "inline"}]
+           [:& h/sortable-container {}
+            [:& sets-list]]))]]]))
 
 (mf/defc tokens-tab
   [_props]
@@ -343,15 +349,14 @@
   {::mf/wrap [mf/memo]
    ::mf/wrap-props false}
   [_props]
-  (let [{on-pointer-down-pages :on-pointer-down
+  (let [tokens-tab? (not (mf/deref refs/workspace-token-set-group-selected?))
+        {on-pointer-down-pages :on-pointer-down
          on-lost-pointer-capture-pages :on-lost-pointer-capture
          on-pointer-move-pages :on-pointer-move
          size-pages-opened :size}
         (use-resize-hook :tokens 200 38 400 :y false nil)]
     [:div {:class (stl/css :sidebar-wrapper)}
-     [:article {:class (stl/css :sets-section-wrapper)
-                :style {"--resize-height" (str size-pages-opened "px")}}
-      [:& themes-sets-tab]]
+     [:& themes-sets-tab {:resize-height size-pages-opened}]
      [:article {:class (stl/css :tokens-section-wrapper)}
       [:div {:class (stl/css :resize-area-horiz)
              :on-pointer-down on-pointer-down-pages
diff --git a/frontend/src/app/main/ui/workspace/tokens/token_set.cljs b/frontend/src/app/main/ui/workspace/tokens/token_set.cljs
index 9e1af19c4..380a6b997 100644
--- a/frontend/src/app/main/ui/workspace/tokens/token_set.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/token_set.cljs
@@ -41,16 +41,30 @@
       (some-> (get-workspace-tokens-lib state)
               (ctob/get-sets)
               (first)
-              (:name))))
+              (ctob/get-set-path))))
+
+(defn get-selected-token-set-node [state]
+  (when-let [path (some-> (get-selected-token-set-id state)
+                          (ctob/split-token-set-path))]
+    (some-> (get-workspace-tokens-lib state)
+            (ctob/get-in-set-tree path))))
 
 (defn get-selected-token-set [state]
-  (when-let [id (get-selected-token-set-id state)]
-    (some-> (get-workspace-tokens-lib state)
-            (ctob/get-set id))))
+  (let [set-node (get-selected-token-set-node state)]
+    (when (instance? ctob/TokenSet set-node)
+      set-node)))
+
+(defn get-selected-token-set-group [state]
+  (let [set-node (get-selected-token-set-node state)]
+    (when (and set-node (not (instance? ctob/TokenSet set-node)))
+      set-node)))
 
 (defn get-selected-token-set-tokens [state]
   (some-> (get-selected-token-set state)
           :tokens))
 
+(defn token-group-selected? [state]
+  (some? (get-selected-token-set-group state)))
+
 (defn assoc-selected-token-set-id [state id]
   (assoc-in state [:workspace-local :selected-token-set-id] id))