diff --git a/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectFTUX.tsx b/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectFTUX.tsx
index 1f637d9b0e3..ab2c95ede86 100644
--- a/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectFTUX.tsx
+++ b/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectFTUX.tsx
@@ -7,7 +7,6 @@ import {
 import Link from "next/link";
 import type { Project } from "@/api/project/projects";
 import { Alert, AlertDescription, AlertTitle } from "@/components/ui/alert";
-import { AlertDialogFooter } from "@/components/ui/alert-dialog";
 import { CodeServer } from "@/components/ui/code/code.server";
 import { UnderlineLink } from "@/components/ui/UnderlineLink";
 import { DotNetIcon } from "@/icons/brand-icons/DotNetIcon";
@@ -25,10 +24,10 @@ import {
   getProjectWallet,
   type ProjectWalletSummary,
 } from "@/lib/server/project-wallet";
-import CreateServerWallet from "../../transactions/server-wallets/components/create-server-wallet.client";
 import { ClientIDSection } from "./ClientIDSection";
 import { IntegrateAPIKeyCodeTabs } from "./IntegrateAPIKeyCodeTabs";
 import { ProjectWalletControls } from "./ProjectWalletControls.client";
+import { ProjectWalletSetup } from "./ProjectWalletSetup.client";
 import { SecretKeySection } from "./SecretKeySection";
 
 export async function ProjectFTUX(props: {
@@ -108,22 +107,11 @@ export function ProjectWalletSection(props: {
               </div>
             </>
           ) : (
-            <Alert variant="info">
-              <CircleAlertIcon className="size-5" />
-              <AlertTitle>No default project wallet set</AlertTitle>
-              <AlertDescription>
-                Set a default project wallet to use for dashboard and API
-                integrations.
-              </AlertDescription>
-              <AlertDialogFooter className="flex justify-start sm:justify-start pt-4">
-                <CreateServerWallet
-                  managementAccessToken={props.managementAccessToken}
-                  project={props.project}
-                  teamSlug={props.teamSlug}
-                  setAsProjectWallet={true}
-                />
-              </AlertDialogFooter>
-            </Alert>
+            <ProjectWalletSetup
+              managementAccessToken={props.managementAccessToken}
+              project={props.project}
+              teamSlug={props.teamSlug}
+            />
           )}
         </div>
       </div>
diff --git a/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectWalletControls.client.tsx b/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectWalletControls.client.tsx
index 97fb9d328f2..eb9ea652eba 100644
--- a/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectWalletControls.client.tsx
+++ b/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectWalletControls.client.tsx
@@ -48,9 +48,14 @@ import {
   FormMessage,
 } from "@/components/ui/form";
 import { Input } from "@/components/ui/input";
-import { Label } from "@/components/ui/label";
-import { RadioGroup, RadioGroupItem } from "@/components/ui/radio-group";
 import { Spinner } from "@/components/ui/Spinner";
+import {
+  Select,
+  SelectContent,
+  SelectItem,
+  SelectTrigger,
+  SelectValue,
+} from "@/components/ui/select";
 import { getClientThirdwebClient } from "@/constants/thirdweb-client.client";
 import { useV5DashboardChain } from "@/hooks/chains/v5-adapter";
 import { useDashboardRouter } from "@/lib/DashboardRouter";
@@ -163,7 +168,7 @@ export function ProjectWalletControls(props: ProjectWalletControlsProps) {
     },
     onSuccess: async (_, wallet) => {
       const descriptionLabel = wallet.label ?? wallet.address;
-      toast.success("Default project wallet updated", {
+      toast.success("Project wallet updated", {
         description: `Now pointing to ${descriptionLabel}`,
       });
       await queryClient.invalidateQueries({
@@ -347,49 +352,66 @@ export function ProjectWalletControls(props: ProjectWalletControlsProps) {
                 default.
               </p>
             ) : (
-              <RadioGroup
-                className="space-y-3"
-                onValueChange={(value) => setSelectedWalletId(value)}
-                value={selectedWalletId}
-              >
-                {serverWallets.map((wallet) => {
-                  const isCurrent =
-                    wallet.address.toLowerCase() === currentWalletAddressLower;
-                  const isSelected = wallet.id === selectedWalletId;
-
-                  return (
-                    <Label
-                      key={wallet.id}
-                      htmlFor={`project-wallet-${wallet.id}`}
-                      className={cn(
-                        "flex cursor-pointer items-center gap-3 rounded-lg border border-border bg-card px-4 py-3 transition",
-                        isSelected && "border-primary ring-2 ring-primary/20",
-                      )}
-                    >
-                      <RadioGroupItem
-                        id={`project-wallet-${wallet.id}`}
-                        value={wallet.id}
-                        className="mt-0.5"
-                      />
-                      <div className="flex flex-1 flex-col overflow-hidden">
+              <div className="flex flex-col gap-3">
+                <Select
+                  onValueChange={(value) => setSelectedWalletId(value)}
+                  value={selectedWalletId ?? ""}
+                >
+                  <SelectTrigger className="w-full">
+                    <SelectValue placeholder="Select server wallet">
+                      {selectedWallet ? (
                         <div className="flex items-center gap-2">
-                          <span className="text-sm font-medium text-foreground">
-                            {wallet.label ?? "Unnamed server wallet"}
-                          </span>
-                          {isCurrent && (
-                            <Badge variant="success" className="text-xs">
-                              current
-                            </Badge>
-                          )}
+                          <WalletAddress
+                            address={selectedWallet.address}
+                            client={client}
+                          />
+                          <div className="flex items-center gap-2">
+                            <span className="text-sm text-foreground">
+                              {selectedWallet.label ?? "Unnamed server wallet"}
+                            </span>
+                            {selectedWallet.address.toLowerCase() ===
+                              currentWalletAddressLower && (
+                              <Badge variant="success" className="text-xs">
+                                current
+                              </Badge>
+                            )}
+                          </div>
                         </div>
-                        <span className="text-xs text-muted-foreground break-all">
-                          {wallet.address}
-                        </span>
-                      </div>
-                    </Label>
-                  );
-                })}
-              </RadioGroup>
+                      ) : (
+                        "Select server wallet"
+                      )}
+                    </SelectValue>
+                  </SelectTrigger>
+                  <SelectContent>
+                    {serverWallets.map((wallet) => {
+                      const isCurrent =
+                        wallet.address.toLowerCase() ===
+                        currentWalletAddressLower;
+
+                      return (
+                        <SelectItem key={wallet.id} value={wallet.id}>
+                          <div className="flex items-center gap-2">
+                            <WalletAddress
+                              address={wallet.address}
+                              client={client}
+                            />
+                            <div className="flex items-center gap-2">
+                              <span className="text-sm text-foreground">
+                                {wallet.label ?? "Unnamed server wallet"}
+                              </span>
+                              {isCurrent && (
+                                <Badge variant="success" className="text-xs">
+                                  current
+                                </Badge>
+                              )}
+                            </div>
+                          </div>
+                        </SelectItem>
+                      );
+                    })}
+                  </SelectContent>
+                </Select>
+              </div>
             )}
           </div>
 
diff --git a/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectWalletSetup.client.tsx b/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectWalletSetup.client.tsx
new file mode 100644
index 00000000000..e04a35fc92f
--- /dev/null
+++ b/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/components/ProjectFTUX/ProjectWalletSetup.client.tsx
@@ -0,0 +1,215 @@
+"use client";
+
+import { useMutation, useQuery, useQueryClient } from "@tanstack/react-query";
+import { CircleAlertIcon } from "lucide-react";
+import { useMemo, useState } from "react";
+import { toast } from "sonner";
+import { listProjectServerWallets } from "@/actions/project-wallet/list-server-wallets";
+import type { Project } from "@/api/project/projects";
+import { WalletAddress } from "@/components/blocks/wallet-address";
+import { Alert, AlertDescription, AlertTitle } from "@/components/ui/alert";
+import { Button } from "@/components/ui/button";
+import { Spinner } from "@/components/ui/Spinner";
+import {
+  Select,
+  SelectContent,
+  SelectItem,
+  SelectTrigger,
+  SelectValue,
+} from "@/components/ui/select";
+import { getClientThirdwebClient } from "@/constants/thirdweb-client.client";
+import { useDashboardRouter } from "@/lib/DashboardRouter";
+import type { ProjectWalletSummary } from "@/lib/server/project-wallet";
+import { updateDefaultProjectWallet } from "../../transactions/lib/vault.client";
+import CreateServerWallet from "../../transactions/server-wallets/components/create-server-wallet.client";
+
+export function ProjectWalletSetup(props: {
+  project: Project;
+  teamSlug: string;
+  managementAccessToken: string | undefined;
+}) {
+  const { project, teamSlug, managementAccessToken } = props;
+  const router = useDashboardRouter();
+  const queryClient = useQueryClient();
+  const client = useMemo(() => getClientThirdwebClient(), []);
+  const [selectedWalletId, setSelectedWalletId] = useState<string | undefined>(
+    undefined,
+  );
+
+  const serverWalletsQuery = useQuery({
+    enabled: Boolean(managementAccessToken),
+    queryFn: async () => {
+      if (!managementAccessToken) {
+        return [] as ProjectWalletSummary[];
+      }
+
+      return listProjectServerWallets({
+        managementAccessToken,
+        projectId: project.id,
+      });
+    },
+    queryKey: ["project", project.id, "server-wallets", managementAccessToken],
+    staleTime: 60_000,
+  });
+
+  const serverWallets = serverWalletsQuery.data ?? [];
+
+  const effectiveSelectedWalletId = useMemo(() => {
+    if (
+      selectedWalletId &&
+      serverWallets.some((wallet) => wallet.id === selectedWalletId)
+    ) {
+      return selectedWalletId;
+    }
+
+    return serverWallets[0]?.id;
+  }, [selectedWalletId, serverWallets]);
+
+  const selectedWallet = useMemo(() => {
+    if (!effectiveSelectedWalletId) {
+      return undefined;
+    }
+
+    return serverWallets.find(
+      (wallet) => wallet.id === effectiveSelectedWalletId,
+    );
+  }, [effectiveSelectedWalletId, serverWallets]);
+
+  const setDefaultWalletMutation = useMutation({
+    mutationFn: async (wallet: ProjectWalletSummary) => {
+      await updateDefaultProjectWallet({
+        project,
+        projectWalletAddress: wallet.address,
+      });
+    },
+    onError: (error) => {
+      const message =
+        error instanceof Error
+          ? error.message
+          : "Failed to update project wallet";
+      toast.error(message);
+    },
+    onSuccess: async (_, wallet) => {
+      const descriptionLabel = wallet.label ?? wallet.address;
+      toast.success("Project wallet updated", {
+        description: `Now pointing to ${descriptionLabel}`,
+      });
+      await queryClient.invalidateQueries({
+        queryKey: [
+          "project",
+          project.id,
+          "server-wallets",
+          managementAccessToken,
+        ],
+      });
+      router.refresh();
+    },
+  });
+
+  const canSelectExisting =
+    Boolean(managementAccessToken) && serverWallets.length > 0;
+
+  return (
+    <Alert variant="info">
+      <CircleAlertIcon className="size-5" />
+      <AlertTitle>No project wallet set</AlertTitle>
+      <AlertDescription>
+        Set a project wallet to use for dashboard and API integrations.
+      </AlertDescription>
+
+      <div className="mt-4 space-y-5">
+        {serverWalletsQuery.isLoading ? (
+          <div className="flex items-center gap-2 text-sm text-muted-foreground">
+            <Spinner className="size-4" />
+            <span>Loading existing server wallets…</span>
+          </div>
+        ) : canSelectExisting ? (
+          <div className="space-y-4">
+            <div className="space-y-2">
+              <p className="text-sm font-medium text-foreground">
+                Choose an existing server wallet
+              </p>
+              <p className="text-sm text-muted-foreground">
+                These wallets were already created for this project. Pick one to
+                set as the default.
+              </p>
+              <Select
+                onValueChange={(value) => setSelectedWalletId(value)}
+                value={effectiveSelectedWalletId ?? ""}
+              >
+                <SelectTrigger className="w-full">
+                  <SelectValue placeholder="Select server wallet">
+                    {selectedWallet ? (
+                      <div className="flex items-center gap-2">
+                        <WalletAddress
+                          address={selectedWallet.address}
+                          client={client}
+                        />
+                        <span className="text-muted-foreground text-sm">
+                          {selectedWallet.label ?? "Unnamed server wallet"}
+                        </span>
+                      </div>
+                    ) : (
+                      "Select server wallet"
+                    )}
+                  </SelectValue>
+                </SelectTrigger>
+                <SelectContent>
+                  {serverWallets.map((wallet) => (
+                    <SelectItem key={wallet.id} value={wallet.id}>
+                      <div className="flex items-center gap-2">
+                        <WalletAddress
+                          address={wallet.address}
+                          client={client}
+                        />
+                        <span className="text-muted-foreground text-sm">
+                          {wallet.label ?? "Unnamed server wallet"}
+                        </span>
+                      </div>
+                    </SelectItem>
+                  ))}
+                </SelectContent>
+              </Select>
+            </div>
+
+            <div className="flex flex-wrap items-center gap-3">
+              <Button
+                disabled={!selectedWallet || setDefaultWalletMutation.isPending}
+                onClick={() => {
+                  if (selectedWallet) {
+                    setDefaultWalletMutation.mutate(selectedWallet);
+                  }
+                }}
+                type="button"
+              >
+                {setDefaultWalletMutation.isPending && (
+                  <Spinner className="mr-2 size-4" />
+                )}
+                Set as project wallet
+              </Button>
+              <CreateServerWallet
+                managementAccessToken={managementAccessToken}
+                project={project}
+                teamSlug={teamSlug}
+                setAsProjectWallet
+              />
+            </div>
+          </div>
+        ) : (
+          <div className="space-y-3 text-sm text-muted-foreground">
+            <p>
+              Create a server wallet to start using transactions and other
+              project features.
+            </p>
+            <CreateServerWallet
+              managementAccessToken={managementAccessToken}
+              project={project}
+              teamSlug={teamSlug}
+              setAsProjectWallet
+            />
+          </div>
+        )}
+      </div>
+    </Alert>
+  );
+}
diff --git a/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/transactions/server-wallets/wallet-table/wallet-table-ui.client.tsx b/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/transactions/server-wallets/wallet-table/wallet-table-ui.client.tsx
index e7f8f6bafe4..68375c24822 100644
--- a/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/transactions/server-wallets/wallet-table/wallet-table-ui.client.tsx
+++ b/apps/dashboard/src/app/(app)/team/[team_slug]/[project_slug]/(sidebar)/transactions/server-wallets/wallet-table/wallet-table-ui.client.tsx
@@ -292,7 +292,7 @@ function ServerWalletTableRow(props: {
     queryKey: ["smart-account-address", wallet.address, chainId],
   });
 
-  // Get the default project wallet address
+  // Get the project wallet address
   const engineCloudService = project.services.find(
     (service) => service.name === "engineCloud",
   );
@@ -422,7 +422,7 @@ function WalletActionsDropdown(props: {
       });
     },
     onSuccess: () => {
-      toast.success("Wallet set as default project wallet");
+      toast.success("Wallet set as project wallet");
       router.refresh();
     },
     onError: (error) => {