diff --git a/app/client/src/components/designSystems/appsmith/ScrollIndicator.tsx b/app/client/src/components/designSystems/appsmith/ScrollIndicator.tsx
new file mode 100644
index 0000000000..e2fc432579
--- /dev/null
+++ b/app/client/src/components/designSystems/appsmith/ScrollIndicator.tsx
@@ -0,0 +1,94 @@
+import React, { useEffect, useState, useRef } from "react";
+import styled from "styled-components";
+import _ from "lodash";
+import { useSpring, animated, interpolate } from "react-spring";
+
+const ScrollTrack = styled.div<{
+  isVisible: boolean;
+}>`
+  position: absolute;
+  z-index: 100;
+  top: 0;
+  right: 2px;
+  width: 4px;
+  height: 100%;
+  box-shadow: inset 0 0 6px rgba(0, 0, 0, 0.3);
+  overflow: hidden;
+  opacity: ${(props) => (props.isVisible ? 1 : 0)};
+  transition: opacity 0.15s ease-in;
+`;
+
+const ScrollThumb = styled(animated.div)`
+  width: 4px;
+  background-color: #ebeef0aa;
+  border-radius: 3px;
+  transform: translate3d(0, 0, 0);
+`;
+
+interface Props {
+  containerRef: React.RefObject<HTMLDivElement>;
+}
+const ScrollIndicator = ({ containerRef }: Props) => {
+  const [{ thumbPosition }, setThumbPosition] = useSpring(() => ({
+    thumbPosition: 0,
+    config: {
+      clamp: true,
+      friction: 10,
+      precision: 0.1,
+      tension: 800,
+    },
+  }));
+  const [isScrollVisible, setIsScrollVisible] = useState(false);
+  const thumbRef = useRef<HTMLDivElement>(null);
+
+  useEffect(() => {
+    const handleContainerScroll = (e: any): void => {
+      setIsScrollVisible(true);
+      const thumbHeight =
+        e.target.offsetHeight / (e.target.scrollHeight / e.target.offsetHeight);
+      const thumbPosition = (e.target.scrollTop / e.target.offsetHeight) * 100;
+      /* set scroll thumb height */
+      if (thumbRef.current) {
+        thumbRef.current.style.height = thumbHeight + "px";
+      }
+      setThumbPosition({
+        thumbPosition,
+      });
+    };
+
+    containerRef.current?.addEventListener("scroll", handleContainerScroll);
+
+    return () => {
+      containerRef.current?.removeEventListener(
+        "scroll",
+        handleContainerScroll,
+      );
+    };
+  }, []);
+
+  useEffect(() => {
+    if (isScrollVisible) {
+      hideScrollbar();
+    }
+  }, [isScrollVisible]);
+
+  const hideScrollbar = _.debounce(() => {
+    setIsScrollVisible(false);
+  }, 1500);
+
+  return (
+    <ScrollTrack isVisible={isScrollVisible}>
+      <ScrollThumb
+        ref={thumbRef}
+        style={{
+          transform: interpolate(
+            [thumbPosition],
+            (top: number) => `translate3d(0px, ${top}%, 0)`,
+          ),
+        }}
+      />
+    </ScrollTrack>
+  );
+};
+
+export default ScrollIndicator;
diff --git a/app/client/src/components/editorComponents/Sidebar.tsx b/app/client/src/components/editorComponents/Sidebar.tsx
index a3867af282..8282baf2ff 100644
--- a/app/client/src/components/editorComponents/Sidebar.tsx
+++ b/app/client/src/components/editorComponents/Sidebar.tsx
@@ -10,7 +10,7 @@ import PerformanceTracker, {
 
 const SidebarWrapper = styled.div`
   background-color: ${Colors.MINE_SHAFT};
-  padding: 0px 0 0 6px;
+  padding: 0;
   width: ${(props) => props.theme.sidebarWidth};
   z-index: 3;
 
diff --git a/app/client/src/pages/Editor/Explorer/Entity/index.tsx b/app/client/src/pages/Editor/Explorer/Entity/index.tsx
index b2f18dbba3..5f48fe0640 100644
--- a/app/client/src/pages/Editor/Explorer/Entity/index.tsx
+++ b/app/client/src/pages/Editor/Explorer/Entity/index.tsx
@@ -37,7 +37,8 @@ export const EntityItem = styled.div<{
 }>`
   position: relative;
   font-size: 12px;
-  padding-left: ${(props) => props.step * props.theme.spaces[2]}px;
+  padding-left: ${(props) =>
+    props.step * props.theme.spaces[2] + props.theme.spaces[2]}px;
   background: ${(props) => (props.active ? Colors.TUNDORA : "none")};
   height: 30px;
   width: 100%;
diff --git a/app/client/src/pages/Editor/Explorer/EntityExplorer.tsx b/app/client/src/pages/Editor/Explorer/EntityExplorer.tsx
index 9fa198df11..fc874ddfbe 100644
--- a/app/client/src/pages/Editor/Explorer/EntityExplorer.tsx
+++ b/app/client/src/pages/Editor/Explorer/EntityExplorer.tsx
@@ -9,7 +9,6 @@ import {
 } from "./hooks";
 import Search from "./ExplorerSearch";
 import ExplorerPageGroup from "./Pages/PageGroup";
-import { scrollbarDark } from "constants/DefaultTheme";
 import { NonIdealState, Classes, IPanelProps } from "@blueprintjs/core";
 import WidgetSidebar from "../WidgetSidebar";
 import { BUILDER_PAGE_URL } from "constants/routes";
@@ -22,11 +21,17 @@ import PerformanceTracker, {
 } from "utils/PerformanceTracker";
 import { useSelector } from "react-redux";
 import { getPlugins } from "selectors/entitiesSelector";
+import ScrollIndicator from "components/designSystems/appsmith/ScrollIndicator";
 
 const Wrapper = styled.div`
   height: 100%;
-  overflow-y: scroll;
-  ${scrollbarDark};
+  overflow-y: auto;
+  scrollbar-width: none;
+  -ms-overflow-style: none;
+  &::-webkit-scrollbar {
+    width: 0px;
+    -webkit-appearance: none;
+  }
 `;
 
 const NoResult = styled(NonIdealState)`
@@ -41,6 +46,7 @@ const StyledDivider = styled(Divider)`
 
 const EntityExplorer = (props: IPanelProps) => {
   const { applicationId } = useParams<ExplorerURLParams>();
+
   const searchInputRef: MutableRefObject<HTMLInputElement | null> = useRef(
     null,
   );
@@ -99,6 +105,7 @@ const EntityExplorer = (props: IPanelProps) => {
       )}
       <StyledDivider />
       <JSDependencies />
+      <ScrollIndicator containerRef={explorerRef} />
     </Wrapper>
   );
 };