diff --git a/frontend/package-lock.json b/frontend/package-lock.json
index 4c76c1dfb7..91b8d4bc34 100644
--- a/frontend/package-lock.json
+++ b/frontend/package-lock.json
@@ -89,7 +89,7 @@
         "react-mailchimp-subscribe": "^2.1.3",
         "react-markdown": "^8.0.3",
         "react-redux": "^8.0.2",
-        "react-select": "^5.8.1",
+        "react-select": "^5.8.3",
         "react-table": "^7.8.0",
         "react-toastify": "^9.1.3",
         "sanitize-html": "^2.12.1",
@@ -21259,9 +21259,9 @@
       }
     },
     "node_modules/react-select": {
-      "version": "5.8.1",
-      "resolved": "https://registry.npmjs.org/react-select/-/react-select-5.8.1.tgz",
-      "integrity": "sha512-RT1CJmuc+ejqm5MPgzyZujqDskdvB9a9ZqrdnVLsvAHjJ3Tj0hELnLeVPQlmYdVKCdCpxanepl6z7R5KhXhWzg==",
+      "version": "5.8.3",
+      "resolved": "https://registry.npmjs.org/react-select/-/react-select-5.8.3.tgz",
+      "integrity": "sha512-lVswnIq8/iTj1db7XCG74M/3fbGB6ZaluCzvwPGT5ZOjCdL/k0CLWhEK0vCBLuU5bHTEf6Gj8jtSvi+3v+tO1w==",
       "license": "MIT",
       "dependencies": {
         "@babel/runtime": "^7.12.0",
diff --git a/frontend/package.json b/frontend/package.json
index b9e85254a5..a0bc59fbc5 100644
--- a/frontend/package.json
+++ b/frontend/package.json
@@ -102,7 +102,7 @@
     "react-mailchimp-subscribe": "^2.1.3",
     "react-markdown": "^8.0.3",
     "react-redux": "^8.0.2",
-    "react-select": "^5.8.1",
+    "react-select": "^5.8.3",
     "react-table": "^7.8.0",
     "react-toastify": "^9.1.3",
     "sanitize-html": "^2.12.1",
diff --git a/frontend/src/components/v2/CreatableSelect/CreatableSelect.tsx b/frontend/src/components/v2/CreatableSelect/CreatableSelect.tsx
new file mode 100644
index 0000000000..b662ab1217
--- /dev/null
+++ b/frontend/src/components/v2/CreatableSelect/CreatableSelect.tsx
@@ -0,0 +1,68 @@
+import { GroupBase } from "react-select";
+import ReactSelectCreatable, { CreatableProps } from "react-select/creatable";
+import { twMerge } from "tailwind-merge";
+
+import { ClearIndicator, DropdownIndicator, MultiValueRemove, Option } from "../Select/components";
+
+export const CreatableSelect = <T,>({
+  isMulti,
+  closeMenuOnSelect,
+  ...props
+}: CreatableProps<T, boolean, GroupBase<T>>) => {
+  return (
+    <ReactSelectCreatable
+      isMulti={isMulti}
+      closeMenuOnSelect={closeMenuOnSelect ?? !isMulti}
+      hideSelectedOptions={false}
+      unstyled
+      styles={{
+        input: (base) => ({
+          ...base,
+          "input:focus": {
+            boxShadow: "none"
+          }
+        }),
+        multiValueLabel: (base) => ({
+          ...base,
+          whiteSpace: "normal",
+          overflow: "visible"
+        }),
+        control: (base) => ({
+          ...base,
+          transition: "none"
+        })
+      }}
+      components={{ DropdownIndicator, ClearIndicator, MultiValueRemove, Option }}
+      classNames={{
+        container: () => "w-full font-inter",
+        control: ({ isFocused }) =>
+          twMerge(
+            isFocused ? "border-primary-400/50" : "border-mineshaft-600 hover:border-gray-400",
+            "border w-full p-0.5 rounded-md text-mineshaft-200 font-inter bg-mineshaft-900 hover:cursor-pointer"
+          ),
+        placeholder: () => "text-mineshaft-400 text-sm pl-1 py-0.5",
+        input: () => "pl-1 py-0.5",
+        valueContainer: () => `p-1 max-h-[14rem] ${isMulti ? "!overflow-y-scroll" : ""} gap-1`,
+        singleValue: () => "leading-7 ml-1",
+        multiValue: () => "bg-mineshaft-600 rounded items-center py-0.5 px-2 gap-1.5",
+        multiValueLabel: () => "leading-6 text-sm",
+        multiValueRemove: () => "hover:text-red text-bunker-400",
+        indicatorsContainer: () => "p-1 gap-1",
+        clearIndicator: () => "p-1 hover:text-red text-bunker-400",
+        indicatorSeparator: () => "bg-bunker-400",
+        dropdownIndicator: () => "text-bunker-200 p-1",
+        menu: () =>
+          "mt-2 border text-sm text-mineshaft-200 bg-mineshaft-900 border-mineshaft-600 rounded-md",
+        groupHeading: () => "ml-3 mt-2 mb-1 text-mineshaft-400 text-sm",
+        option: ({ isFocused, isSelected }) =>
+          twMerge(
+            isFocused && "bg-mineshaft-700 active:bg-mineshaft-600",
+            isSelected && "text-mineshaft-200",
+            "hover:cursor-pointer text-xs px-3 py-2"
+          ),
+        noOptionsMessage: () => "text-mineshaft-400 p-2 rounded-md"
+      }}
+      {...props}
+    />
+  );
+};
diff --git a/frontend/src/components/v2/CreatableSelect/index.tsx b/frontend/src/components/v2/CreatableSelect/index.tsx
new file mode 100644
index 0000000000..7a8676c3b6
--- /dev/null
+++ b/frontend/src/components/v2/CreatableSelect/index.tsx
@@ -0,0 +1 @@
+export * from "./CreatableSelect";
diff --git a/frontend/src/components/v2/FilterableSelect/FilterableSelect.tsx b/frontend/src/components/v2/FilterableSelect/FilterableSelect.tsx
index 5333d79d2a..6c474907f7 100644
--- a/frontend/src/components/v2/FilterableSelect/FilterableSelect.tsx
+++ b/frontend/src/components/v2/FilterableSelect/FilterableSelect.tsx
@@ -1,50 +1,7 @@
-import Select, {
-  ClearIndicatorProps,
-  components,
-  DropdownIndicatorProps,
-  MultiValueRemoveProps,
-  OptionProps,
-  Props
-} from "react-select";
-import { faCheckCircle, faCircleXmark } from "@fortawesome/free-regular-svg-icons";
-import { faChevronDown, faXmark } from "@fortawesome/free-solid-svg-icons";
-import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
+import Select, { Props } from "react-select";
 import { twMerge } from "tailwind-merge";
 
-const DropdownIndicator = <T,>(props: DropdownIndicatorProps<T>) => {
-  return (
-    <components.DropdownIndicator {...props}>
-      <FontAwesomeIcon icon={faChevronDown} size="xs" />
-    </components.DropdownIndicator>
-  );
-};
-
-const ClearIndicator = <T,>(props: ClearIndicatorProps<T>) => {
-  return (
-    <components.ClearIndicator {...props}>
-      <FontAwesomeIcon icon={faCircleXmark} />
-    </components.ClearIndicator>
-  );
-};
-
-const MultiValueRemove = (props: MultiValueRemoveProps) => {
-  return (
-    <components.MultiValueRemove {...props}>
-      <FontAwesomeIcon icon={faXmark} size="xs" />
-    </components.MultiValueRemove>
-  );
-};
-
-const Option = <T,>({ isSelected, children, ...props }: OptionProps<T>) => {
-  return (
-    <components.Option isSelected={isSelected} {...props}>
-      {children}
-      {isSelected && (
-        <FontAwesomeIcon className="ml-2 text-primary" icon={faCheckCircle} size="sm" />
-      )}
-    </components.Option>
-  );
-};
+import { ClearIndicator, DropdownIndicator, MultiValueRemove, Option } from "../Select/components";
 
 export const FilterableSelect = <T,>({ isMulti, closeMenuOnSelect, ...props }: Props<T>) => (
   <Select
diff --git a/frontend/src/components/v2/Select/components/index.tsx b/frontend/src/components/v2/Select/components/index.tsx
new file mode 100644
index 0000000000..520f61a334
--- /dev/null
+++ b/frontend/src/components/v2/Select/components/index.tsx
@@ -0,0 +1,45 @@
+import {
+  ClearIndicatorProps,
+  components,
+  DropdownIndicatorProps,
+  MultiValueRemoveProps,
+  OptionProps
+} from "react-select";
+import { faCheckCircle, faCircleXmark } from "@fortawesome/free-regular-svg-icons";
+import { faChevronDown, faXmark } from "@fortawesome/free-solid-svg-icons";
+import { FontAwesomeIcon } from "@fortawesome/react-fontawesome";
+
+export const DropdownIndicator = <T,>(props: DropdownIndicatorProps<T>) => {
+  return (
+    <components.DropdownIndicator {...props}>
+      <FontAwesomeIcon icon={faChevronDown} size="xs" />
+    </components.DropdownIndicator>
+  );
+};
+
+export const ClearIndicator = <T,>(props: ClearIndicatorProps<T>) => {
+  return (
+    <components.ClearIndicator {...props}>
+      <FontAwesomeIcon icon={faCircleXmark} />
+    </components.ClearIndicator>
+  );
+};
+
+export const MultiValueRemove = (props: MultiValueRemoveProps) => {
+  return (
+    <components.MultiValueRemove {...props}>
+      <FontAwesomeIcon icon={faXmark} size="xs" />
+    </components.MultiValueRemove>
+  );
+};
+
+export const Option = <T,>({ isSelected, children, ...props }: OptionProps<T>) => {
+  return (
+    <components.Option isSelected={isSelected} {...props}>
+      {children}
+      {isSelected && (
+        <FontAwesomeIcon className="ml-2 text-primary" icon={faCheckCircle} size="sm" />
+      )}
+    </components.Option>
+  );
+};
diff --git a/frontend/src/views/SecretMainPage/components/CreateSecretForm/CreateSecretForm.tsx b/frontend/src/views/SecretMainPage/components/CreateSecretForm/CreateSecretForm.tsx
index 09a905b2d9..77b6aff7bf 100644
--- a/frontend/src/views/SecretMainPage/components/CreateSecretForm/CreateSecretForm.tsx
+++ b/frontend/src/views/SecretMainPage/components/CreateSecretForm/CreateSecretForm.tsx
@@ -6,11 +6,12 @@ import { zodResolver } from "@hookform/resolvers/zod";
 import { z } from "zod";
 
 import { createNotification } from "@app/components/notifications";
-import { Button, FilterableSelect, FormControl, Input } from "@app/components/v2";
+import { Button, FormControl, Input } from "@app/components/v2";
+import { CreatableSelect } from "@app/components/v2/CreatableSelect";
 import { InfisicalSecretInput } from "@app/components/v2/InfisicalSecretInput";
 import { ProjectPermissionActions, ProjectPermissionSub, useProjectPermission } from "@app/context";
 import { getKeyValue } from "@app/helpers/parseEnvVar";
-import { useCreateSecretV3, useGetWsTags } from "@app/hooks/api";
+import { useCreateSecretV3, useCreateWsTag, useGetWsTags } from "@app/hooks/api";
 import { SecretType } from "@app/hooks/api/types";
 
 import { PopUpNames, usePopUpAction } from "../../SecretMainPage.store";
@@ -50,12 +51,39 @@ export const CreateSecretForm = ({
   const { closePopUp } = usePopUpAction();
 
   const { mutateAsync: createSecretV3 } = useCreateSecretV3();
+  const createWsTag = useCreateWsTag();
+
   const { permission } = useProjectPermission();
   const canReadTags = permission.can(ProjectPermissionActions.Read, ProjectPermissionSub.Tags);
   const { data: projectTags, isLoading: isTagsLoading } = useGetWsTags(
     canReadTags ? workspaceId : ""
   );
 
+  const createNewTag = async (slug: string) => {
+    // TODO: Replace with slugSchema generic
+    const slugSchema = z.string().trim().toLowerCase().min(1);
+    try {
+      const parsedSlug = slugSchema.parse(slug);
+      await createWsTag.mutateAsync({
+        workspaceID: workspaceId,
+        tagSlug: parsedSlug,
+        tagColor: ""
+      });
+    } catch (error) {
+      if (error instanceof z.ZodError) {
+        createNotification({
+          type: "error",
+          text: `Failed to create new tag: ${error.message}`
+        });
+      } else {
+        createNotification({
+          type: "error",
+          text: "Failed to create new tag"
+        });
+      }
+    }
+  };
+
   const handleFormSubmit = async ({ key, value, tags }: TFormSchema) => {
     try {
       await createSecretV3({
@@ -148,16 +176,17 @@ export const CreateSecretForm = ({
               )
             }
           >
-            <FilterableSelect
+            <CreatableSelect
+              isMulti
               className="w-full"
               placeholder="Select tags to assign to secret..."
-              isMulti
               name="tagIds"
               isDisabled={!canReadTags}
               isLoading={isTagsLoading && canReadTags}
               options={projectTags?.map((el) => ({ label: el.slug, value: el.id }))}
               value={field.value}
               onChange={field.onChange}
+              onCreateOption={createNewTag}
             />
           </FormControl>
         )}