diff --git a/frontend/src/container/GridCardLayout/GridCard/WidgetGraphComponent.test.tsx b/frontend/src/container/GridCardLayout/GridCard/WidgetGraphComponent.test.tsx
new file mode 100644
index 0000000000..cc8d35ad9c
--- /dev/null
+++ b/frontend/src/container/GridCardLayout/GridCard/WidgetGraphComponent.test.tsx
@@ -0,0 +1,233 @@
+import { fireEvent, render, screen } from '@testing-library/react';
+import { PANEL_TYPES } from 'constants/queryBuilder';
+import ROUTES from 'constants/routes';
+import { AppProvider } from 'providers/App/App';
+import MockQueryClientProvider from 'providers/test/MockQueryClientProvider';
+import { Provider } from 'react-redux';
+import store from 'store';
+import { DataTypes } from 'types/api/queryBuilder/queryAutocompleteResponse';
+import { EQueryType } from 'types/common/dashboard';
+import { DataSource } from 'types/common/queryBuilder';
+
+import {
+	MENUITEM_KEYS_VS_LABELS,
+	MenuItemKeys,
+} from '../WidgetHeader/contants';
+import { WidgetGraphComponentProps } from './types';
+import WidgetGraphComponent from './WidgetGraphComponent';
+
+jest.mock('react-router-dom', () => ({
+	...jest.requireActual('react-router-dom'),
+	useLocation: (): { pathname: string } => ({
+		pathname: `${process.env.FRONTEND_API_ENDPOINT}/${ROUTES.DASHBOARD}/624652db-6097-42f5-bbca-e9012901db00`,
+	}),
+}));
+
+jest.mock('uplot', () => {
+	const paths = {
+		spline: jest.fn(),
+		bars: jest.fn(),
+	};
+	const uplotMock = jest.fn(() => ({
+		paths,
+	}));
+	return {
+		paths,
+		default: uplotMock,
+	};
+});
+
+// Mock data
+const mockProps: WidgetGraphComponentProps = {
+	widget: {
+		bucketCount: 30,
+		bucketWidth: 0,
+		columnUnits: {},
+		description: '',
+		fillSpans: false,
+		id: '17f905f6-d355-46bd-a78e-cbc87e6f58cc',
+		isStacked: false,
+		mergeAllActiveQueries: false,
+		nullZeroValues: 'zero',
+		opacity: '1',
+		panelTypes: PANEL_TYPES.VALUE,
+		query: {
+			builder: {
+				queryData: [
+					{
+						aggregateAttribute: {
+							dataType: DataTypes.String,
+							id: 'span_id--string----true',
+							isColumn: true,
+							isJSON: false,
+							key: 'span_id',
+							type: '',
+						},
+						aggregateOperator: 'count_distinct',
+						dataSource: DataSource.TRACES,
+						disabled: false,
+						expression: 'A',
+						filters: {
+							items: [],
+							op: 'AND',
+						},
+						functions: [],
+						groupBy: [],
+						having: [],
+						legend: '',
+						limit: null,
+						orderBy: [],
+						queryName: 'A',
+						reduceTo: 'last',
+						spaceAggregation: 'sum',
+						stepInterval: 60,
+						timeAggregation: 'count_distinct',
+					},
+				],
+				queryFormulas: [],
+			},
+			clickhouse_sql: [
+				{
+					disabled: false,
+					legend: '',
+					name: 'A',
+					query: '',
+				},
+			],
+			id: '47449208-2c76-4465-9c62-a37fb4f5f11f',
+			promql: [
+				{
+					disabled: false,
+					legend: '',
+					name: 'A',
+					query: '',
+				},
+			],
+			queryType: EQueryType.QUERY_BUILDER,
+		},
+		selectedLogFields: [
+			{
+				dataType: 'string',
+				name: 'body',
+				type: '',
+			},
+			{
+				dataType: 'string',
+				name: 'timestamp',
+				type: '',
+			},
+		],
+		selectedTracesFields: [],
+		softMax: 0,
+		softMin: 0,
+		stackedBarChart: false,
+		thresholds: [],
+		timePreferance: 'GLOBAL_TIME',
+		title: 'Test Dashboard',
+		yAxisUnit: 'none',
+	},
+	queryResponse: {
+		status: 'loading',
+		isLoading: true,
+		isSuccess: false,
+		isError: false,
+		isIdle: false,
+		dataUpdatedAt: 0,
+		error: null,
+		errorUpdatedAt: 0,
+		failureCount: 0,
+		errorUpdateCount: 0,
+		isFetched: false,
+		isFetchedAfterMount: false,
+		isFetching: true,
+		isRefetching: false,
+		isLoadingError: false,
+		isPlaceholderData: false,
+		isPreviousData: false,
+		isRefetchError: false,
+		isStale: true,
+		data: undefined,
+		refetch: jest.fn(),
+		remove: jest.fn(),
+	},
+	errorMessage: '',
+	version: 'v4',
+	headerMenuList: [
+		MenuItemKeys.View,
+		MenuItemKeys.Clone,
+		MenuItemKeys.Delete,
+		MenuItemKeys.Edit,
+		MenuItemKeys.CreateAlerts,
+	],
+	isWarning: false,
+	isFetchingResponse: false,
+	setRequestData: jest.fn(),
+	onClickHandler: jest.fn(),
+	onDragSelect: jest.fn(),
+	openTracesButton: false,
+	onOpenTraceBtnClick: jest.fn(),
+};
+
+// Mock useDashabord hook
+jest.mock('providers/Dashboard/Dashboard', () => ({
+	useDashboard: (): any => ({
+		selectedDashboard: {
+			data: {
+				variables: [],
+			},
+		},
+	}),
+}));
+
+describe('WidgetGraphComponent', () => {
+	it('should show correct menu items when hovering over more options while loading', async () => {
+		const { getByTestId, findByRole, getByText, container } = render(
+			<MockQueryClientProvider>
+				<Provider store={store}>
+					<AppProvider>
+						<WidgetGraphComponent
+							widget={mockProps.widget}
+							queryResponse={mockProps.queryResponse}
+							errorMessage={mockProps.errorMessage}
+							version={mockProps.version}
+							headerMenuList={mockProps.headerMenuList}
+							isWarning={mockProps.isWarning}
+							isFetchingResponse={mockProps.isFetchingResponse}
+							setRequestData={mockProps.setRequestData}
+							onClickHandler={mockProps.onClickHandler}
+							onDragSelect={mockProps.onDragSelect}
+							openTracesButton={mockProps.openTracesButton}
+							onOpenTraceBtnClick={mockProps.onOpenTraceBtnClick}
+						/>
+					</AppProvider>
+				</Provider>
+			</MockQueryClientProvider>,
+		);
+
+		expect(getByText('Test Dashboard')).toBeInTheDocument();
+
+		// check if skeleton is rendered
+		const skeleton = container.querySelector('.ant-skeleton');
+		expect(skeleton).toBeInTheDocument();
+
+		const moreOptionsButton = getByTestId('widget-header-options');
+		fireEvent.mouseEnter(moreOptionsButton);
+
+		const menu = await findByRole('menu');
+		expect(menu).toBeInTheDocument();
+
+		// Check if all menu items are present
+		const expectedMenuItems = [
+			MENUITEM_KEYS_VS_LABELS[MenuItemKeys.View],
+			MENUITEM_KEYS_VS_LABELS[MenuItemKeys.Clone],
+			MENUITEM_KEYS_VS_LABELS[MenuItemKeys.Delete],
+			MENUITEM_KEYS_VS_LABELS[MenuItemKeys.Edit],
+			MENUITEM_KEYS_VS_LABELS[MenuItemKeys.CreateAlerts],
+		];
+
+		// check that menu is visible
+		expectedMenuItems.forEach((item) => {
+			expect(screen.getByText(item)).toBeInTheDocument();
+		});
+	});
+});
diff --git a/frontend/src/container/GridCardLayout/GridCard/WidgetGraphComponent.tsx b/frontend/src/container/GridCardLayout/GridCard/WidgetGraphComponent.tsx
index 097463f946..74022b2c0a 100644
--- a/frontend/src/container/GridCardLayout/GridCard/WidgetGraphComponent.tsx
+++ b/frontend/src/container/GridCardLayout/GridCard/WidgetGraphComponent.tsx
@@ -229,21 +229,6 @@ function WidgetGraphComponent({
 
 	const [searchTerm, setSearchTerm] = useState<string>('');
 
-	const loadingState =
-		(queryResponse.isLoading || queryResponse.status === 'idle') &&
-		widget.panelTypes !== PANEL_TYPES.LIST;
-
-	if (loadingState) {
-		return (
-			<Skeleton
-				style={{
-					height: '100%',
-					padding: '16px',
-				}}
-			/>
-		);
-	}
-
 	return (
 		<div
 			style={{