diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1f2cc1cec..2b4f8ef10 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -22,6 +22,7 @@ changes.
 - Fix adding two link input fields when editing the dRep form when no links are present initially [Issue 3709](https://github.com/IntersectMBO/govtool/issues/3709)
 
 ### Changed
+- Adjust top menu (navbar) layout when wallet is not connected [Issue-3682](https://github.com/IntersectMBO/govtool/issues/3682)
 
 ### Removed
 
diff --git a/govtool/frontend/src/components/atoms/Link.tsx b/govtool/frontend/src/components/atoms/Link.tsx
index 78fc8bccd..14b6862c4 100644
--- a/govtool/frontend/src/components/atoms/Link.tsx
+++ b/govtool/frontend/src/components/atoms/Link.tsx
@@ -1,4 +1,4 @@
-import { FC } from "react";
+import { forwardRef, MouseEvent } from "react";
 import { NavLink } from "react-router-dom";
 import { Typography } from "@mui/material";
 import { useCardano } from "@context";
@@ -6,51 +6,54 @@ import { useCardano } from "@context";
 type LinkProps = {
   dataTestId?: string;
   isConnectWallet?: boolean;
-  label: string;
+  label: React.ReactNode;
   navTo: string;
-  onClick?: () => void;
+  onClick?: (event: MouseEvent<HTMLAnchorElement>) => void;
   size?: "small" | "big";
 };
 
-export const Link: FC<LinkProps> = ({ ...props }) => {
-  const {
-    dataTestId,
-    isConnectWallet,
-    label,
-    navTo,
-    size = "small",
-    onClick,
-  } = props;
-  const { disconnectWallet } = useCardano();
+export const Link = forwardRef<HTMLAnchorElement, LinkProps>(
+  ({ ...props }, ref) => {
+    const {
+      dataTestId,
+      isConnectWallet,
+      label,
+      navTo,
+      size = "small",
+      onClick,
+    } = props;
+    const { disconnectWallet } = useCardano();
 
-  const fontSize = {
-    small: 14,
-    big: 22,
-  }[size];
+    const fontSize = {
+      small: 14,
+      big: 22,
+    }[size];
 
-  return (
-    <NavLink
-      data-testid={dataTestId}
-      to={navTo}
-      style={{
-        textDecoration: "none",
-      }}
-      onClick={() => {
-        if (!isConnectWallet) disconnectWallet();
-        if (onClick) onClick();
-      }}
-    >
-      {({ isActive }) => (
-        <Typography
-          sx={{
-            fontSize,
-            fontWeight: isActive && navTo !== "" ? 600 : 500,
-            color: isActive && navTo !== "" ? "#FF640A" : "textBlack",
-          }}
-        >
-          {label}
-        </Typography>
-      )}
-    </NavLink>
-  );
-};
+    return (
+      <NavLink
+        data-testid={dataTestId}
+        to={navTo}
+        style={{
+          textDecoration: "none",
+        }}
+        onClick={(e) => {
+          if (!isConnectWallet) disconnectWallet();
+          if (onClick) onClick(e);
+        }}
+        ref={ref}
+      >
+        {({ isActive }) => (
+          <Typography
+            sx={{
+              fontSize,
+              fontWeight: isActive && navTo !== "" ? 600 : 500,
+              color: isActive && navTo !== "" ? "#FF640A" : "textBlack",
+            }}
+          >
+            {label}
+          </Typography>
+        )}
+      </NavLink>
+    );
+  },
+);
diff --git a/govtool/frontend/src/components/organisms/DrawerMobile.tsx b/govtool/frontend/src/components/organisms/DrawerMobile.tsx
index ebdc1885e..12cb754a6 100644
--- a/govtool/frontend/src/components/organisms/DrawerMobile.tsx
+++ b/govtool/frontend/src/components/organisms/DrawerMobile.tsx
@@ -1,8 +1,9 @@
+import { FC } from "react";
 import { NavLink } from "react-router-dom";
 import { Box, Grid, IconButton, SwipeableDrawer } from "@mui/material";
 
 import { Background, Button, Link, Typography } from "@atoms";
-import { ICONS, IMAGES, NAV_ITEMS, PATHS } from "@consts";
+import { ICONS, IMAGES, NAV_ITEMS, NavMenuItem, NavItem, PATHS } from "@consts";
 import { useScreenDimension, useTranslation } from "@hooks";
 import { useFeatureFlag, useModal } from "@context";
 import { openInNewTab } from "@utils";
@@ -13,15 +14,14 @@ import { LINKS } from "@/consts/links";
 const DRAWER_PADDING = 2;
 const CALCULATED_DRAWER_PADDING = DRAWER_PADDING * 8 * 2;
 
+const isNavMenuItem = (item: NavItem | NavMenuItem): item is NavMenuItem =>
+  "childNavItems" in item;
+
 export const DrawerMobile = ({
   isConnectButton,
   isDrawerOpen,
   setIsDrawerOpen,
 }: DrawerMobileProps) => {
-  const {
-    isProposalDiscussionForumEnabled,
-    isGovernanceOutcomesPillarEnabled,
-  } = useFeatureFlag();
   const { screenWidth } = useScreenDimension();
   const { openModal } = useModal();
   const { t } = useTranslation();
@@ -85,18 +85,13 @@ export const DrawerMobile = ({
           <Box sx={{ display: "flex", flex: 1, flexDirection: "column" }}>
             <Grid container direction="column" mt={6} rowGap={4}>
               {NAV_ITEMS.map((navItem) => {
-                if (
-                  !isProposalDiscussionForumEnabled &&
-                  navItem.dataTestId === "proposed-governance-actions-link"
-                ) {
-                  return null;
-                }
-
-                if (
-                  !isGovernanceOutcomesPillarEnabled &&
-                  navItem.dataTestId === "governance-actions-outcomes-link"
-                ) {
-                  return null;
+                if (isNavMenuItem(navItem)) {
+                  return (
+                    <MenuNavItem
+                      closeDrawer={() => setIsDrawerOpen(false)}
+                      navItem={navItem}
+                    />
+                  );
                 }
                 return (
                   <Grid item key={navItem.label}>
@@ -129,3 +124,60 @@ export const DrawerMobile = ({
     </SwipeableDrawer>
   );
 };
+
+const MenuNavItem: FC<{
+  navItem: NavMenuItem;
+  closeDrawer: () => void;
+}> = ({ closeDrawer, navItem }) => {
+  const {
+    isProposalDiscussionForumEnabled,
+    isGovernanceOutcomesPillarEnabled,
+  } = useFeatureFlag();
+
+  const filterChildNavItems = () => {
+    if (navItem.dataTestId === "governance-actions") {
+      return (navItem.childNavItems || []).filter((item) => {
+        if (
+          !isProposalDiscussionForumEnabled &&
+          item.dataTestId === "proposed-governance-actions-link"
+        )
+          return false;
+        if (
+          !isGovernanceOutcomesPillarEnabled &&
+          item.dataTestId === "governance-actions-outcomes-link"
+        )
+          return false;
+        return true;
+      });
+    }
+    return navItem.childNavItems;
+  };
+  return (
+    <>
+      <Grid item key={navItem.label}>
+        <Link
+          navTo=""
+          data-testid={navItem.dataTestId}
+          label={navItem.label}
+          size="big"
+        />
+      </Grid>
+      {filterChildNavItems()?.map((childNavItem) => (
+        <Grid item key={childNavItem.label} ml={3}>
+          <Link
+            {...childNavItem}
+            data-testid={childNavItem.dataTestId}
+            onClick={() => {
+              if (childNavItem.newTabLink) {
+                openInNewTab(childNavItem.newTabLink);
+              }
+              closeDrawer();
+            }}
+            label={childNavItem.label}
+            size="big"
+          />
+        </Grid>
+      ))}
+    </>
+  );
+};
diff --git a/govtool/frontend/src/components/organisms/TopNav.tsx b/govtool/frontend/src/components/organisms/TopNav.tsx
index 2d8da5cf0..2d3190884 100644
--- a/govtool/frontend/src/components/organisms/TopNav.tsx
+++ b/govtool/frontend/src/components/organisms/TopNav.tsx
@@ -1,9 +1,9 @@
-import { useEffect, useRef, useState } from "react";
+import { useEffect, useRef, useState, FC } from "react";
 import { NavLink, useNavigate } from "react-router-dom";
-import { AppBar, Box, Grid, IconButton } from "@mui/material";
+import { AppBar, Box, Grid, IconButton, Menu, MenuItem } from "@mui/material";
 import MenuIcon from "@mui/icons-material/Menu";
 import { Button, Link } from "@atoms";
-import { ICONS, IMAGES, PATHS, NAV_ITEMS } from "@consts";
+import { ICONS, IMAGES, PATHS, NAV_ITEMS, NavMenuItem } from "@consts";
 import { useCardano, useFeatureFlag, useModal } from "@context";
 import { useScreenDimension, useTranslation } from "@hooks";
 import { openInNewTab } from "@utils";
@@ -12,11 +12,10 @@ import { useMaintenanceEndingBannerContext } from "./MaintenanceEndingBanner";
 
 const POSITION_TO_BLUR = 80;
 
+const isNavMenuItem = (item: NavItem | NavMenuItem): item is NavMenuItem =>
+  "childNavItems" in item;
+
 export const TopNav = ({ isConnectButton = true }) => {
-  const {
-    isProposalDiscussionForumEnabled,
-    isGovernanceOutcomesPillarEnabled,
-  } = useFeatureFlag();
   const containerRef = useRef<HTMLDivElement>(null);
   const [shouldBlur, setShouldBlur] = useState(false);
   const { openModal } = useModal();
@@ -49,20 +48,6 @@ export const TopNav = ({ isConnectButton = true }) => {
     openModal({ type: "chooseWallet" });
   };
 
-  const filteredNavItems = NAV_ITEMS.filter((navItem) => {
-    if (
-      !isProposalDiscussionForumEnabled &&
-      navItem.dataTestId === "proposed-governance-actions-link"
-    )
-      return false;
-    if (
-      !isGovernanceOutcomesPillarEnabled &&
-      navItem.dataTestId === "governance-actions-outcomes-link"
-    )
-      return false;
-    return true;
-  });
-
   const renderDesktopNav = () => (
     <nav
       style={{ display: "flex", alignItems: "center", justifyContent: "end" }}
@@ -73,18 +58,29 @@ export const TopNav = ({ isConnectButton = true }) => {
         columns={5}
         columnSpacing={screenWidth < 1024 ? 2 : 4}
       >
-        {filteredNavItems.map((navItem) => (
-          <Grid item key={navItem.label}>
-            <Link
-              {...navItem}
-              isConnectWallet={isConnectButton}
-              onClick={() => {
-                if (navItem.newTabLink) openInNewTab(navItem.newTabLink);
-                setIsDrawerOpen(false);
-              }}
-            />
-          </Grid>
-        ))}
+        {NAV_ITEMS.map((navItem) => {
+          if (isNavMenuItem(navItem)) {
+            return (
+              <Grid item key={navItem.label}>
+                <MenuNavItem
+                  navItem={navItem}
+                  closeDrawer={() => setIsDrawerOpen(false)}
+                />
+              </Grid>
+            );
+          }
+          return (
+            <Grid item key={navItem.label}>
+              <Link
+                {...navItem}
+                isConnectWallet={isConnectButton}
+                onClick={() => {
+                  setIsDrawerOpen(false);
+                }}
+              />
+            </Grid>
+          );
+        })}
         {isConnectButton && (
           <Grid item>
             <Button
@@ -196,3 +192,123 @@ export const TopNav = ({ isConnectButton = true }) => {
     </Box>
   );
 };
+
+const MenuNavItem: FC<{
+  navItem: NavMenuItem;
+  closeDrawer: () => void;
+}> = ({ closeDrawer, navItem }) => {
+  const [anchorEl, setAnchorEl] = useState<HTMLAnchorElement | null>(null);
+  const {
+    isProposalDiscussionForumEnabled,
+    isGovernanceOutcomesPillarEnabled,
+  } = useFeatureFlag();
+
+  // Create a ref array for child links to manage cliking within MenuItem but outside of Link
+  const linkRefs = useRef<Array<HTMLAnchorElement | null>>([]);
+
+  const open = Boolean(anchorEl);
+  const handleClick = (event: React.MouseEvent<HTMLAnchorElement>) => {
+    setAnchorEl(event.currentTarget);
+  };
+  const handleClose = () => {
+    setAnchorEl(null);
+  };
+
+  const filterChildNavItems = () => {
+    if (navItem.dataTestId === "governance-actions") {
+      return (navItem.childNavItems || []).filter((item) => {
+        if (
+          !isProposalDiscussionForumEnabled &&
+          item.dataTestId === "proposed-governance-actions-link"
+        )
+          return false;
+        if (
+          !isGovernanceOutcomesPillarEnabled &&
+          item.dataTestId === "governance-actions-outcomes-link"
+        )
+          return false;
+        return true;
+      });
+    }
+    return navItem.childNavItems;
+  };
+  return (
+    <>
+      <Link
+        navTo=""
+        data-testid={navItem.dataTestId}
+        aria-controls={open ? "basic-menu" : undefined}
+        aria-haspopup="true"
+        aria-expanded={open ? "true" : undefined}
+        onClick={handleClick}
+        label={
+          <span
+            style={{
+              display: "inline-flex",
+              alignItems: "center",
+            }}
+          >
+            {navItem.label}
+            <img
+              alt="dropdown-icon"
+              src={ICONS.arrowDownIcon}
+              style={{
+                marginLeft: "8px",
+                width: "16px",
+                height: "16px",
+                transform: open ? "rotate(180deg)" : "rotate(0deg)",
+                transition: "transform 0.2s ease-in-out",
+              }}
+            />
+          </span>
+        }
+      />
+      <Menu
+        anchorEl={anchorEl}
+        open={open}
+        onClose={handleClose}
+        anchorOrigin={{
+          vertical: "bottom",
+          horizontal: "right",
+        }}
+        transformOrigin={{
+          vertical: "top",
+          horizontal: "right",
+        }}
+        slotProps={{
+          paper: {
+            sx: {
+              mt: 2,
+            },
+          },
+        }}
+      >
+        {filterChildNavItems()?.map((childNavItem, idx) => (
+          <MenuItem
+            key={childNavItem.label}
+            data-testid={childNavItem.dataTestId}
+            sx={{ minWidth: 160 }}
+            onClick={() => {
+              linkRefs.current[idx]?.click();
+            }}
+          >
+            <Link
+              {...childNavItem}
+              ref={(el) => {
+                linkRefs.current[idx] = el;
+              }}
+              onClick={() => {
+                if (childNavItem.newTabLink) {
+                  openInNewTab(childNavItem.newTabLink);
+                }
+                closeDrawer();
+                handleClose();
+              }}
+              label={childNavItem.label}
+            />
+          </MenuItem>
+        ))}
+      </Menu>
+    </>
+  );
+};
diff --git a/govtool/frontend/src/consts/navItems.tsx b/govtool/frontend/src/consts/navItems.tsx
index a72c2bd98..6274f7a33 100644
--- a/govtool/frontend/src/consts/navItems.tsx
+++ b/govtool/frontend/src/consts/navItems.tsx
@@ -13,7 +13,18 @@ import {
   // USER_PATHS
 } from "./paths";
 
-export const NAV_ITEMS = [
+export type NavItem = {
+  dataTestId: string;
+  navTo: string;
+  label: string;
+  newTabLink: string | null;
+};
+export type NavMenuItem = {
+  dataTestId: string;
+  label: string;
+  childNavItems?: Array<NavItem>;
+};
+export const NAV_ITEMS: Array<NavItem | NavMenuItem> = [
   {
     dataTestId: "dashboard-link",
     navTo: PATHS.home,
@@ -24,6 +35,7 @@ export const NAV_ITEMS = [
     dataTestId: "drep-directory-link",
     navTo: PATHS.dRepDirectory,
     label: i18n.t("dRepDirectory.title"),
+    newTabLink: null,
   },
   {
     dataTestId: "budget-discussion-link",
@@ -32,22 +44,28 @@ export const NAV_ITEMS = [
     newTabLink: null,
   },
   {
-    dataTestId: "proposed-governance-actions-link",
-    navTo: PDF_PATHS.proposalDiscussion,
-    label: i18n.t("proposalDiscussion.title"),
-    newTabLink: null,
-  },
-  {
-    dataTestId: "governance-actions-link",
-    navTo: PATHS.governanceActions,
-    label: i18n.t("govActions.navTitle"),
-    newTabLink: null,
-  },
-  {
-    dataTestId: "governance-actions-outcomes-link",
-    label: i18n.t("govActions.outcomes.title"),
-    navTo: OUTCOMES_PATHS.governanceActionsOutcomes,
-    newTabLink: null,
+    dataTestId: "governance-actions",
+    label: i18n.t("govActions.title"),
+    childNavItems: [
+      {
+        dataTestId: "proposed-governance-actions-link",
+        navTo: PDF_PATHS.proposalDiscussion,
+        label: i18n.t("proposalDiscussion.title"),
+        newTabLink: null,
+      },
+      {
+        dataTestId: "governance-actions-link",
+        navTo: PATHS.governanceActions,
+        label: i18n.t("govActions.navTitle"),
+        newTabLink: null,
+      },
+      {
+        dataTestId: "governance-actions-outcomes-link",
+        label: i18n.t("govActions.outcomes.title"),
+        navTo: OUTCOMES_PATHS.governanceActionsOutcomes,
+        newTabLink: null,
+      },
+    ],
   },
   {
     dataTestId: "guides-link",
diff --git a/govtool/frontend/src/i18n/locales/en.json b/govtool/frontend/src/i18n/locales/en.json
index 4f529bf79..2bfe893ef 100644
--- a/govtool/frontend/src/i18n/locales/en.json
+++ b/govtool/frontend/src/i18n/locales/en.json
@@ -45,7 +45,7 @@
   "dashboard": {
     "headingOne": "Your Participation",
     "headingTwo": "See Active Governance Actions",
-    "title": "Dashboard",
+    "title": "Home",
     "cards": {
       "drepName": "Drep_name",
       "showTransaction": "Show Transaction",