diff --git a/apps/roam/src/components/DiscourseNodeMenu.tsx b/apps/roam/src/components/DiscourseNodeMenu.tsx
index 0c55f7d8c..af07e05ce 100644
--- a/apps/roam/src/components/DiscourseNodeMenu.tsx
+++ b/apps/roam/src/components/DiscourseNodeMenu.tsx
@@ -42,6 +42,7 @@ type Props = {
   isShift?: boolean;
   menuMaxHeight?: number;
   settingsSnapshot?: SettingsSnapshot;
+  onTagAdded?: (newText: string) => void;
 };
 
 const NodeMenu = ({
@@ -53,6 +54,7 @@ const NodeMenu = ({
   isShift,
   menuMaxHeight,
   settingsSnapshot,
+  onTagAdded,
 }: { onClose: () => void } & Props) => {
   const isInitialTextSelected =
     !!textarea && textarea.selectionStart !== textarea.selectionEnd;
@@ -161,7 +163,7 @@ const NodeMenu = ({
         const tag = menuItem.getAttribute("data-tag") || "";
         if (!tag) return;
 
-        const addTagToBlock = () => {
+        const addTagToBlock = async () => {
           const textToInsert = `${
             selectionStart === 0 ? "" : " "
           }#${tag.replace(/^#/, "")}`;
@@ -171,10 +173,11 @@ const NodeMenu = ({
             selectionStart,
           )}${textToInsert}${currentText.substring(selectionStart)}`;
 
-          void updateBlock({ text: newText, uid: targetBlockUid });
+          await updateBlock({ text: newText, uid: targetBlockUid });
           posthog.capture("Discourse Tag: Created via Node Menu", {
             tag,
           });
+          onTagAdded?.(newText);
         };
         // timeout required to ensure the block is updated
         setTimeout(() => void addTagToBlock(), 100);
@@ -184,7 +187,15 @@ const NodeMenu = ({
       }
       onClose();
     },
-    [menuRef, targetBlockUid, onClose, textarea, extensionAPI, showNodeTypes],
+    [
+      menuRef,
+      targetBlockUid,
+      onClose,
+      textarea,
+      extensionAPI,
+      showNodeTypes,
+      onTagAdded,
+    ],
   );
 
   const keydownListener = useCallback(
diff --git a/apps/roam/src/components/canvas/DiscourseNodeUtil.tsx b/apps/roam/src/components/canvas/DiscourseNodeUtil.tsx
index 6a5733800..fe5d9bd90 100644
--- a/apps/roam/src/components/canvas/DiscourseNodeUtil.tsx
+++ b/apps/roam/src/components/canvas/DiscourseNodeUtil.tsx
@@ -42,6 +42,7 @@ import { getRelationColor } from "./DiscourseRelationShape/DiscourseRelationUtil
 import { getPersonalSetting } from "~/components/settings/utils/accessors";
 import { PERSONAL_KEYS } from "~/components/settings/utils/settingKeys";
 import DiscourseContextOverlay from "~/components/DiscourseContextOverlay";
+import NodeMenu from "~/components/DiscourseNodeMenu";
 import { getDiscourseNodeColors } from "~/utils/getDiscourseNodeColors";
 import { render as renderToast } from "roamjs-components/components/Toast";
 import { RenderRoamBlockString } from "~/utils/roamReactComponents";
@@ -459,6 +460,8 @@ export class DiscourseNodeUtil extends BaseBoxShapeUtil<DiscourseNodeShape> {
     // eslint-disable-next-line react-hooks/rules-of-hooks
     const [overlayMounted, setOverlayMounted] = useState(false);
     // eslint-disable-next-line react-hooks/rules-of-hooks
+    const [addTagMenuKey, setAddTagMenuKey] = useState(0);
+    // eslint-disable-next-line react-hooks/rules-of-hooks
     const dialogRenderedRef = useRef(false);
 
     // Detect discourse node tags in block text for blck-node shapes
@@ -487,6 +490,32 @@ export class DiscourseNodeUtil extends BaseBoxShapeUtil<DiscourseNodeShape> {
       return null;
     }, [shape]);
 
+    const showAddTagButton =
+      getDiscourseNodeTypeId({ shape }) === "blck-node" &&
+      isLiveBlock(shape.props.uid) &&
+      Object.values(discourseContext.nodes).some(
+        (n) => n.backedBy === "user" && n.tag,
+      );
+
+    const handleTagAdded = (newText: string) => {
+      const updateShape = async () => {
+        if (!extensionAPI) return;
+        const { h, w, imageUrl } = await calcCanvasNodeSizeAndImg({
+          nodeText: newText,
+          uid: shape.props.uid,
+          nodeType: getDiscourseNodeTypeId({ shape }),
+          extensionAPI,
+        });
+        this.updateProps(shape.id, shape.type, {
+          title: newText,
+          h,
+          w,
+          imageUrl,
+        });
+      };
+      void updateShape();
+    };
+
     const { backgroundColor, textColor } = this.getColors(shape);
     const showEmbeddedRoamBlock =
       !isPageUid(shape.props.uid) && isLiveBlock(shape.props.uid);
@@ -619,114 +648,145 @@ export class DiscourseNodeUtil extends BaseBoxShapeUtil<DiscourseNodeShape> {
           className="relative flex h-full min-h-0 w-full min-w-0 flex-col"
           style={{ pointerEvents: "all" }}
         >
-          {/* Open in Sidebar Button */}
-          <Button
-            className="absolute left-1 top-1 z-10"
-            minimal
-            small
-            icon={
-              <Icon
-                icon="panel-stats"
-                color={textColor}
-                className="opacity-50"
-              />
-            }
-            onClick={(e) => {
-              e.stopPropagation();
-              void openBlockInSidebar(shape.props.uid);
-            }}
-            onPointerDown={(e) => e.stopPropagation()}
-            title="Open in sidebar (Shift+Click)"
-          />
-
-          {/* Convert to Node Type Button */}
-          {matchedNodeForConversion && (
+          <div className="absolute left-1 top-1 z-10 flex items-center">
+            {/* Open in Sidebar Button */}
             <Button
-              className="absolute left-7 top-1 z-10"
               minimal
               small
               icon={
-                <Icon icon="plus" color={textColor} className="opacity-50" />
+                <Icon
+                  icon="panel-stats"
+                  color={textColor}
+                  className="opacity-50"
+                />
               }
               onClick={(e) => {
                 e.stopPropagation();
-                const { node, blockText } = matchedNodeForConversion;
-                const tag = node.tag;
-                if (!tag) return;
-                const cleanTag = getCleanTagText(tag);
-                const escapedCleanTag = escapeRegExp(cleanTag);
-                // Strip the tag from block text (same pattern as detection above)
-                const cleanedText = blockText
-                  .replace(
-                    new RegExp(`#\\[\\[${escapedCleanTag}\\]\\]`, "i"),
-                    "",
-                  )
-                  .replace(new RegExp(`#${escapedCleanTag}`, "i"), "")
-                  .trim();
-                const { x, y } = shape;
-                renderModifyNodeDialog({
-                  mode: "create",
-                  nodeType: node.type,
-                  initialValue: { text: cleanedText, uid: "" },
-                  extensionAPI,
-                  includeDefaultNodes: true,
-                  disableNodeTypeChange: true,
-                  onSuccess: async ({ text, uid }) => {
-                    if (!extensionAPI) return;
-                    try {
-                      const {
-                        h,
-                        w,
-                        imageUrl: nodeImageUrl,
-                      } = await calcCanvasNodeSizeAndImg({
-                        nodeText: text,
-                        extensionAPI,
-                        nodeType: node.type,
-                        uid,
-                      });
-                      editor.createShapes([
-                        {
-                          type: DISCOURSE_NODE_SHAPE_TYPE,
-                          id: createShapeId(),
-                          props: {
-                            uid,
-                            title: text,
-                            h,
-                            w,
-                            imageUrl: nodeImageUrl,
-                            fontFamily: "sans",
-                            size: "s",
-                            nodeTypeId: node.type,
-                          },
-                          x,
-                          y,
-                        },
-                      ]);
-                      editor.deleteShapes([shape.id]);
-                    } catch (error) {
-                      renderToast({
-                        id: `discourse-node-convert-error-${Date.now()}`,
-                        intent: "danger",
-                        content: (
-                          <span>Error converting block: {String(error)}</span>
-                        ),
-                      });
-                    }
-                  },
-                  onClose: () => {},
-                });
+                void openBlockInSidebar(shape.props.uid);
               }}
               onPointerDown={(e) => e.stopPropagation()}
-              title={`Convert to ${matchedNodeForConversion.node.text}`}
-            >
-              <span
-                className="opacity-70"
-                style={{ color: textColor, fontSize: "11px" }}
+              title="Open in sidebar (Shift+Click)"
+            />
+
+            {/* Add Tag to Block Button */}
+            {extensionAPI && showAddTagButton && (
+              <NodeMenu
+                key={addTagMenuKey}
+                blockUid={shape.props.uid}
+                extensionAPI={extensionAPI}
+                onClose={() => setAddTagMenuKey((k) => k + 1)}
+                onTagAdded={handleTagAdded}
+                trigger={
+                  <Button
+                    minimal
+                    small
+                    icon={
+                      <span className="opacity-50" style={{ color: textColor }}>
+                        #
+                      </span>
+                    }
+                    onPointerDown={(e) => e.stopPropagation()}
+                    title="Add tag"
+                  >
+                    <span
+                      className="opacity-70"
+                      style={{ color: textColor, fontSize: "11px" }}
+                    >
+                      Add tag
+                    </span>
+                  </Button>
+                }
+              />
+            )}
+
+            {/* Convert to Node Type Button */}
+            {matchedNodeForConversion && (
+              <Button
+                minimal
+                small
+                icon={
+                  <Icon icon="plus" color={textColor} className="opacity-50" />
+                }
+                onClick={(e) => {
+                  e.stopPropagation();
+                  const { node, blockText } = matchedNodeForConversion;
+                  const tag = node.tag;
+                  if (!tag) return;
+                  const cleanTag = getCleanTagText(tag);
+                  const escapedCleanTag = escapeRegExp(cleanTag);
+                  // Strip the tag from block text (same pattern as detection above)
+                  const cleanedText = blockText
+                    .replace(
+                      new RegExp(`#\\[\\[${escapedCleanTag}\\]\\]`, "i"),
+                      "",
+                    )
+                    .replace(new RegExp(`#${escapedCleanTag}`, "i"), "")
+                    .trim();
+                  const { x, y } = shape;
+                  renderModifyNodeDialog({
+                    mode: "create",
+                    nodeType: node.type,
+                    initialValue: { text: cleanedText, uid: "" },
+                    extensionAPI,
+                    includeDefaultNodes: true,
+                    disableNodeTypeChange: true,
+                    onSuccess: async ({ text, uid }) => {
+                      if (!extensionAPI) return;
+                      try {
+                        const {
+                          h,
+                          w,
+                          imageUrl: nodeImageUrl,
+                        } = await calcCanvasNodeSizeAndImg({
+                          nodeText: text,
+                          extensionAPI,
+                          nodeType: node.type,
+                          uid,
+                        });
+                        editor.createShapes([
+                          {
+                            type: DISCOURSE_NODE_SHAPE_TYPE,
+                            id: createShapeId(),
+                            props: {
+                              uid,
+                              title: text,
+                              h,
+                              w,
+                              imageUrl: nodeImageUrl,
+                              fontFamily: "sans",
+                              size: "s",
+                              nodeTypeId: node.type,
+                            },
+                            x,
+                            y,
+                          },
+                        ]);
+                        editor.deleteShapes([shape.id]);
+                      } catch (error) {
+                        renderToast({
+                          id: `discourse-node-convert-error-${Date.now()}`,
+                          intent: "danger",
+                          content: (
+                            <span>Error converting block: {String(error)}</span>
+                          ),
+                        });
+                      }
+                    },
+                    onClose: () => {},
+                  });
+                }}
+                onPointerDown={(e) => e.stopPropagation()}
+                title={`Convert to ${matchedNodeForConversion.node.text}`}
               >
-                Convert to {matchedNodeForConversion.node.text}
-              </span>
-            </Button>
-          )}
+                <span
+                  className="opacity-70"
+                  style={{ color: textColor, fontSize: "11px" }}
+                >
+                  Convert to {matchedNodeForConversion.node.text}
+                </span>
+              </Button>
+            )}
+          </div>
 
           {shape.props.imageUrl && isKeyImage === "true" ? (
             <div className="mt-2 flex min-h-0 w-full flex-1 items-center justify-center overflow-hidden">