diff --git a/frontend/src/component/common/Table/cells/FeatureOverviewCell/FeatureOverviewCell.tsx b/frontend/src/component/common/Table/cells/FeatureOverviewCell/FeatureOverviewCell.tsx
index abc699e5a5..79c061e556 100644
--- a/frontend/src/component/common/Table/cells/FeatureOverviewCell/FeatureOverviewCell.tsx
+++ b/frontend/src/component/common/Table/cells/FeatureOverviewCell/FeatureOverviewCell.tsx
@@ -13,6 +13,9 @@ import { ConditionallyRender } from 'component/common/ConditionallyRender/Condit
 import { useFeature } from 'hooks/api/getters/useFeature/useFeature';
 import { useLocationSettings } from 'hooks/useLocationSettings';
 import { getLocalizedDateString } from '../../../util';
+import { Tag } from 'component/common/Tag/Tag';
+import type { ITag } from 'interfaces/tags';
+import { useUiFlag } from 'hooks/useUiFlag';
 
 interface IFeatureNameCellProps {
     row: {
@@ -36,7 +39,7 @@ const StyledFeatureLink = styled(Link)({
     },
 });
 
-const Tag = styled('button')(({ theme }) => ({
+const CustomTagButton = styled('button')(({ theme }) => ({
     marginRight: theme.spacing(0.5),
     border: `1px solid ${theme.palette.divider}`,
     borderRadius: theme.shape.borderRadius,
@@ -51,6 +54,22 @@ const Tag = styled('button')(({ theme }) => ({
     color: 'inherit',
 }));
 
+const StyledTag = styled('div')(({ theme }) => ({
+    display: 'flex',
+    alignItems: 'center',
+    marginRight: theme.spacing(0.5),
+    border: `1px solid ${theme.palette.divider}`,
+    borderRadius: theme.shape.borderRadius,
+    fontSize: theme.fontSizes.smallerBody,
+    textOverflow: 'ellipsis',
+    overflow: 'hidden',
+    textWrap: 'nowrap',
+    maxWidth: '250px',
+    padding: theme.spacing(0.25, 0.5),
+    cursor: 'pointer',
+    backgroundColor: theme.palette.neutral.light,
+}));
+
 const CappedDescription: FC<{ text: string; searchQuery: string }> = ({
     text,
     searchQuery,
@@ -80,19 +99,6 @@ const CappedDescription: FC<{ text: string; searchQuery: string }> = ({
     );
 };
 
-const CappedTag: FC<{ tag: string; children: ReactElement }> = ({
-    tag,
-    children,
-}) => {
-    return (
-        <ConditionallyRender
-            condition={tag.length > 30}
-            show={<HtmlTooltip title={tag}>{children}</HtmlTooltip>}
-            elseShow={children}
-        />
-    );
-};
-
 const Container = styled(Box)(({ theme }) => ({
     display: 'flex',
     flexDirection: 'column',
@@ -158,23 +164,26 @@ const ArchivedFeatureName: FC<{
     );
 };
 
-const RestTags: FC<{ tags: string[]; onClick: (tag: string) => void }> = ({
-    tags,
-    onClick,
-}) => {
+const RestTags: FC<{
+    tags: ITag[];
+    onClick: (tag: string) => void;
+    isTagTypeColorEnabled: boolean;
+}> = ({ tags, onClick, isTagTypeColorEnabled }) => {
     return (
         <HtmlTooltip
             title={tags.map((tag) => (
                 <Box
                     sx={{ cursor: 'pointer' }}
-                    onClick={() => onClick(tag)}
-                    key={tag}
+                    onClick={() => onClick(`${tag.type}:${tag.value}`)}
+                    key={`${tag.type}:${tag.value}`}
                 >
-                    {tag}
+                    {`${tag.type}:${tag.value}`}
                 </Box>
             ))}
         >
-            <Tag sx={{ cursor: 'initial' }}>{tags.length} more...</Tag>
+            <CustomTagButton sx={{ cursor: 'initial' }}>
+                {tags.length} more...
+            </CustomTagButton>
         </HtmlTooltip>
     );
 };
@@ -183,30 +192,77 @@ const Tags: FC<{
     tags: FeatureSearchResponseSchema['tags'];
     onClick: (tag: string) => void;
 }> = ({ tags, onClick }) => {
-    const [tag1, tag2, tag3, ...restTags] = (tags || []).map(
-        ({ type, value }) => `${type}:${value}`,
-    );
+    const isTagTypeColorEnabled = useUiFlag('tagTypeColor');
+
+    if (!tags || tags.length === 0) {
+        return null;
+    }
+
+    // Convert TagSchema to ITag for the Tag component
+    const tagsAsITag: ITag[] = tags.map((tag) => ({
+        type: tag.type,
+        value: tag.value,
+        color: (tag as ITag).color, // Cast to ITag to get the color if available
+    }));
+
+    const [tag1, tag2, tag3, ...restTags] = tagsAsITag;
+
+    const handleTagClick = (tag: ITag) => {
+        onClick(`${tag.type}:${tag.value}`);
+    };
+
+    const renderCappedTag = (tag: ITag) => {
+        const tagFullText = `${tag.type}:${tag.value}`;
+        const needsTooltip = tagFullText.length > 30;
+
+        if (isTagTypeColorEnabled) {
+            const tagComponent = (
+                <Box
+                    onClick={() => handleTagClick(tag)}
+                    sx={{ cursor: 'pointer' }}
+                >
+                    <Tag tag={tag} />
+                </Box>
+            );
+
+            return needsTooltip ? (
+                <HtmlTooltip key={tagFullText} title={tagFullText}>
+                    {tagComponent}
+                </HtmlTooltip>
+            ) : (
+                <Box key={tagFullText}>{tagComponent}</Box>
+            );
+        } else {
+            // Fallback to simple tag rendering without color
+            return (
+                <HtmlTooltip
+                    key={tagFullText}
+                    title={needsTooltip ? tagFullText : ''}
+                >
+                    <StyledTag onClick={() => handleTagClick(tag)}>
+                        {tagFullText.length > 25
+                            ? `${tagFullText.substring(0, 25)}…`
+                            : tagFullText}
+                    </StyledTag>
+                </HtmlTooltip>
+            );
+        }
+    };
 
     return (
         <TagsContainer>
-            {tag1 && (
-                <CappedTag tag={tag1}>
-                    <Tag onClick={() => onClick(tag1)}>{tag1}</Tag>
-                </CappedTag>
-            )}
-            {tag2 && (
-                <CappedTag tag={tag2}>
-                    <Tag onClick={() => onClick(tag2)}>{tag2}</Tag>
-                </CappedTag>
-            )}
-            {tag3 && (
-                <CappedTag tag={tag3}>
-                    <Tag onClick={() => onClick(tag3)}>{tag3}</Tag>
-                </CappedTag>
-            )}
+            {tag1 && renderCappedTag(tag1)}
+            {tag2 && renderCappedTag(tag2)}
+            {tag3 && renderCappedTag(tag3)}
             <ConditionallyRender
                 condition={restTags.length > 0}
-                show={<RestTags tags={restTags} onClick={onClick} />}
+                show={
+                    <RestTags
+                        tags={restTags}
+                        onClick={onClick}
+                        isTagTypeColorEnabled={isTagTypeColorEnabled}
+                    />
+                }
             />
         </TagsContainer>
     );
diff --git a/frontend/src/component/common/Tag/Tag.tsx b/frontend/src/component/common/Tag/Tag.tsx
index 0632e1d52c..e71596652d 100644
--- a/frontend/src/component/common/Tag/Tag.tsx
+++ b/frontend/src/component/common/Tag/Tag.tsx
@@ -8,6 +8,7 @@ const StyledChip = styled(Chip)<{ $color?: string }>(({ theme, $color }) => ({
     border: `1px solid ${theme.palette.divider}`,
     backgroundColor: theme.palette.common.white,
     color: theme.palette.text.primary,
+    height: '26px',
     '& .MuiChip-label': {
         display: 'flex',
         alignItems: 'center',
diff --git a/src/lib/openapi/spec/deprecated-project-overview-schema.ts b/src/lib/openapi/spec/deprecated-project-overview-schema.ts
index f1e1c52e16..1dbd34b0db 100644
--- a/src/lib/openapi/spec/deprecated-project-overview-schema.ts
+++ b/src/lib/openapi/spec/deprecated-project-overview-schema.ts
@@ -13,6 +13,7 @@ import { projectEnvironmentSchema } from './project-environment-schema';
 import { createStrategyVariantSchema } from './create-strategy-variant-schema';
 import { strategyVariantSchema } from './strategy-variant-schema';
 import { createFeatureNamingPatternSchema } from './create-feature-naming-pattern-schema';
+import { tagSchema } from './tag-schema';
 
 export const deprecatedProjectOverviewSchema = {
     $id: '#/components/schemas/deprecatedProjectOverviewSchema',
@@ -136,6 +137,7 @@ export const deprecatedProjectOverviewSchema = {
             createStrategyVariantSchema,
             constraintSchema,
             featureSchema,
+            tagSchema,
             featureEnvironmentSchema,
             overrideSchema,
             parametersSchema,
diff --git a/src/lib/openapi/spec/health-overview-schema.ts b/src/lib/openapi/spec/health-overview-schema.ts
index 5224495e93..613a44b358 100644
--- a/src/lib/openapi/spec/health-overview-schema.ts
+++ b/src/lib/openapi/spec/health-overview-schema.ts
@@ -13,6 +13,7 @@ import { projectEnvironmentSchema } from './project-environment-schema';
 import { createStrategyVariantSchema } from './create-strategy-variant-schema';
 import { strategyVariantSchema } from './strategy-variant-schema';
 import { createFeatureNamingPatternSchema } from './create-feature-naming-pattern-schema';
+import { tagSchema } from '../../services/tag-schema';
 
 export const healthOverviewSchema = {
     $id: '#/components/schemas/healthOverviewSchema',
@@ -125,6 +126,7 @@ export const healthOverviewSchema = {
     components: {
         schemas: {
             environmentSchema,
+            tagSchema,
             projectEnvironmentSchema,
             createFeatureStrategySchema,
             createStrategyVariantSchema,
diff --git a/src/server-dev.ts b/src/server-dev.ts
index 311d0efabc..257a49cf93 100644
--- a/src/server-dev.ts
+++ b/src/server-dev.ts
@@ -59,7 +59,7 @@ process.nextTick(async () => {
                         teamsIntegrationChangeRequests: true,
                         simplifyDisableFeature: true,
                         adminNavUI: false,
-                        tagTypeColor: true,
+                        tagTypeColor: false,
                     },
                 },
                 authentication: {