diff --git a/src/course-unit/add-component/AddComponent.jsx b/src/course-unit/add-component/AddComponent.jsx
index 12dbd665d1..be5ec6ec05 100644
--- a/src/course-unit/add-component/AddComponent.jsx
+++ b/src/course-unit/add-component/AddComponent.jsx
@@ -195,6 +195,7 @@ const AddComponent = ({
         >
           <ComponentPicker
             showOnlyPublished
+            extraFilter={['NOT block_type = "unit"']}
             componentPickerMode={isAddLibraryContentModalOpen ? 'single' : 'multiple'}
             onComponentSelected={handleLibraryV2Selection}
             onChangeComponentSelection={setSelectedComponents}
diff --git a/src/index.jsx b/src/index.jsx
index 8c42ef1b67..67f0833c2f 100755
--- a/src/index.jsx
+++ b/src/index.jsx
@@ -66,8 +66,14 @@ const App = () => {
         <Route path="/libraries-v1" element={<StudioHome />} />
         <Route path="/library/create" element={<CreateLibrary />} />
         <Route path="/library/:libraryId/*" element={<LibraryLayout />} />
-        <Route path="/component-picker" element={<ComponentPicker />} />
-        <Route path="/component-picker/multiple" element={<ComponentPicker componentPickerMode="multiple" />} />
+        <Route
+          path="/component-picker"
+          element={<ComponentPicker extraFilter={['NOT block_type = "unit"']} />}
+        />
+        <Route
+          path="/component-picker/multiple"
+          element={<ComponentPicker componentPickerMode="multiple" extraFilter={['NOT block_type = "unit"']} />}
+        />
         <Route path="/legacy/preview-changes/:usageKey" element={<PreviewChangesEmbed />} />
         <Route path="/course/:courseId/*" element={<CourseAuthoringRoutes />} />
         <Route path="/course_rerun/:courseId" element={<CourseRerun />} />
diff --git a/src/library-authoring/LibraryAuthoringPage.test.tsx b/src/library-authoring/LibraryAuthoringPage.test.tsx
index 06ca4fbe23..ce07e0c70f 100644
--- a/src/library-authoring/LibraryAuthoringPage.test.tsx
+++ b/src/library-authoring/LibraryAuthoringPage.test.tsx
@@ -392,7 +392,7 @@ describe('<LibraryAuthoringPage />', () => {
     await waitFor(() => expect(screen.queryByTestId('library-sidebar')).not.toBeInTheDocument());
   });
 
-  it('should open component sidebar, showing manage tab on clicking add to collection menu item', async () => {
+  it('should open component sidebar, showing manage tab on clicking add to collection menu item (component)', async () => {
     const mockResult0 = { ...mockResult }.results[0].hits[0];
     const displayName = 'Introduction to Testing';
     expect(mockResult0.display_name).toStrictEqual(displayName);
@@ -417,6 +417,29 @@ describe('<LibraryAuthoringPage />', () => {
     await waitFor(() => expect(screen.queryByTestId('library-sidebar')).not.toBeInTheDocument());
   });
 
+  it('should open component sidebar, showing manage tab on clicking add to collection menu item (unit)', async () => {
+    const displayName = 'Test Unit';
+    await renderLibraryPage();
+
+    waitFor(() => expect(screen.getAllByTestId('container-card-menu-toggle').length).toBeGreaterThan(0));
+
+    // Open menu
+    fireEvent.click((await screen.findAllByTestId('container-card-menu-toggle'))[0]);
+    // Click add to collection
+    fireEvent.click(screen.getByRole('button', { name: 'Add to collection' }));
+
+    const sidebar = screen.getByTestId('library-sidebar');
+
+    const { getByRole, queryByText } = within(sidebar);
+
+    await waitFor(() => expect(queryByText(displayName)).toBeInTheDocument());
+    expect(getByRole('tab', { selected: true })).toHaveTextContent('Organize');
+    const closeButton = getByRole('button', { name: /close/i });
+    fireEvent.click(closeButton);
+
+    await waitFor(() => expect(screen.queryByTestId('library-sidebar')).not.toBeInTheDocument());
+  });
+
   it('should open and close the collection sidebar', async () => {
     await renderLibraryPage();
 
@@ -732,7 +755,7 @@ describe('<LibraryAuthoringPage />', () => {
     fireEvent.click(cancelButton);
     expect(unitModalHeading).not.toBeInTheDocument();
 
-    // Open new unit modal again and create a collection
+    // Open new unit modal again and create a unit
     fireEvent.click(newUnitButton);
     const createButton = screen.getByRole('button', { name: /create/i });
     const nameField = screen.getByRole('textbox', { name: /name your unit/i });
@@ -800,7 +823,7 @@ describe('<LibraryAuthoringPage />', () => {
     fireEvent.click(newButton);
     expect(screen.getByText(/add content/i)).toBeInTheDocument();
 
-    // Open New collection Modal
+    // Open New Unit Modal
     const sidebar = screen.getByTestId('library-sidebar');
     const newUnitButton = within(sidebar).getAllByRole('button', { name: /unit/i })[0];
     fireEvent.click(newUnitButton);
diff --git a/src/library-authoring/LibraryAuthoringPage.tsx b/src/library-authoring/LibraryAuthoringPage.tsx
index 10741d1180..dcb11e8c55 100644
--- a/src/library-authoring/LibraryAuthoringPage.tsx
+++ b/src/library-authoring/LibraryAuthoringPage.tsx
@@ -141,6 +141,7 @@ const LibraryAuthoringPage = ({ returnToLibrarySelection }: LibraryAuthoringPage
     libraryData,
     isLoadingLibraryData,
     showOnlyPublished,
+    extraFilter: contextExtraFilter,
     componentId,
     collectionId,
     unitId,
@@ -223,6 +224,10 @@ const LibraryAuthoringPage = ({ returnToLibrarySelection }: LibraryAuthoringPage
     extraFilter.push('last_published IS NOT NULL');
   }
 
+  if (contextExtraFilter) {
+    extraFilter.push(...contextExtraFilter);
+  }
+
   const activeTypeFilters = {
     components: 'type = "library_block"',
     collections: 'type = "collection"',
diff --git a/src/library-authoring/__mocks__/collection-search.json b/src/library-authoring/__mocks__/collection-search.json
index 81e8afcb58..58d4b3e199 100644
--- a/src/library-authoring/__mocks__/collection-search.json
+++ b/src/library-authoring/__mocks__/collection-search.json
@@ -218,8 +218,45 @@
           "org": "OpenedX",
           "access_id": 16,
           "num_children": 1
+        },
+        {
+          "display_name": "Test Unit",
+          "block_id": "test-unit-9284e2",
+          "id": "lctAximTESTunittest-unit-9284e2-a9a4386e",
+          "type": "library_container",
+          "breadcrumbs": [
+            {
+              "display_name": "Test Library"
+            }
+          ],
+          "created": 1742221203.895054,
+          "modified": 1742221203.895054,
+          "usage_key": "lct:Axim:TEST:unit:test-unit-9284e2",
+          "block_type": "unit",
+          "context_key": "lib:Axim:TEST",
+          "org": "Axim",
+          "access_id": 15,
+          "num_children": 0,
+          "_formatted": {
+            "display_name": "Test Unit",
+            "block_id": "test-unit-9284e2",
+            "id": "lctAximTESTunittest-unit-9284e2-a9a4386e",
+            "type": "library_container",
+            "breadcrumbs": [
+              {
+                "display_name": "Test Library"
+              }
+            ],
+            "created": "1742221203.895054",
+            "modified": "1742221203.895054",
+            "usage_key": "lct:Axim:TEST:unit:test-unit-9284e2",
+            "block_type": "unit",
+            "context_key": "lib:Axim:TEST",
+            "org": "Axim",
+            "access_id": "15",
+            "num_children": "0"
+          }
         }
-      
       ],
       "query": "",
       "processingTimeMs": 1,
diff --git a/src/library-authoring/add-content/AddContent.test.tsx b/src/library-authoring/add-content/AddContent.test.tsx
index 5d75b89761..b761b3e92e 100644
--- a/src/library-authoring/add-content/AddContent.test.tsx
+++ b/src/library-authoring/add-content/AddContent.test.tsx
@@ -12,8 +12,12 @@ import {
   mockXBlockFields,
 } from '../data/api.mocks';
 import {
-  getContentLibraryApiUrl, getCreateLibraryBlockUrl, getLibraryCollectionComponentApiUrl, getLibraryPasteClipboardUrl,
-  getXBlockFieldsApiUrl, getLibraryContainerChildrenApiUrl,
+  getContentLibraryApiUrl,
+  getCreateLibraryBlockUrl,
+  getLibraryCollectionItemsApiUrl,
+  getLibraryContainerChildrenApiUrl,
+  getLibraryPasteClipboardUrl,
+  getXBlockFieldsApiUrl,
 } from '../data/api';
 import { mockClipboardEmpty, mockClipboardHtml } from '../../generic/data/api.mock';
 import { LibraryProvider } from '../common/context/LibraryContext';
@@ -151,7 +155,7 @@ describe('<AddContent />', () => {
     const url = getCreateLibraryBlockUrl(libraryId);
     const usageKey = mockXBlockFields.usageKeyNewHtml;
     const updateBlockUrl = getXBlockFieldsApiUrl(usageKey);
-    const collectionComponentUrl = getLibraryCollectionComponentApiUrl(
+    const collectionComponentUrl = getLibraryCollectionItemsApiUrl(
       libraryId,
       collectionId,
     );
@@ -209,7 +213,7 @@ describe('<AddContent />', () => {
 
     const pasteUrl = getLibraryPasteClipboardUrl(libraryId);
     const collectionId = 'some-collection-id';
-    const collectionComponentUrl = getLibraryCollectionComponentApiUrl(
+    const collectionComponentUrl = getLibraryCollectionItemsApiUrl(
       libraryId,
       collectionId,
     );
@@ -234,7 +238,7 @@ describe('<AddContent />', () => {
 
     const pasteUrl = getLibraryPasteClipboardUrl(libraryId);
     const collectionId = 'some-collection-id';
-    const collectionComponentUrl = getLibraryCollectionComponentApiUrl(
+    const collectionComponentUrl = getLibraryCollectionItemsApiUrl(
       libraryId,
       collectionId,
     );
diff --git a/src/library-authoring/add-content/AddContent.tsx b/src/library-authoring/add-content/AddContent.tsx
index e518d42e8e..d29a805aaf 100644
--- a/src/library-authoring/add-content/AddContent.tsx
+++ b/src/library-authoring/add-content/AddContent.tsx
@@ -21,8 +21,8 @@ import { getCanEdit } from '../../course-unit/data/selectors';
 import {
   useCreateLibraryBlock,
   useLibraryPasteClipboard,
-  useAddComponentsToCollection,
   useBlockTypesMetadata,
+  useAddItemsToCollection,
   useAddComponentsToContainer,
 } from '../data/apiHooks';
 import { useLibraryContext } from '../common/context/LibraryContext';
@@ -207,8 +207,8 @@ const AddContent = () => {
     openComponentEditor,
     unitId,
   } = useLibraryContext();
-  const addComponentsToCollectionMutation = useAddComponentsToCollection(libraryId, collectionId);
-  const addComponentsToContainerMutation = useAddComponentsToContainer(libraryId, unitId);
+  const addComponentsToCollectionMutation = useAddItemsToCollection(libraryId, collectionId);
+  const addComponentsToContainerMutation = useAddComponentsToContainer(unitId);
   const createBlockMutation = useCreateLibraryBlock();
   const pasteClipboardMutation = useLibraryPasteClipboard();
   const { showToast } = useContext(ToastContext);
@@ -286,14 +286,14 @@ const AddContent = () => {
     contentTypes.push(pasteButton);
   }
 
-  const linkComponent = (usageKey: string) => {
+  const linkComponent = (opaqueKey: string) => {
     if (collectionId) {
-      addComponentsToCollectionMutation.mutateAsync([usageKey]).catch(() => {
+      addComponentsToCollectionMutation.mutateAsync([opaqueKey]).catch(() => {
         showToast(intl.formatMessage(messages.errorAssociateComponentToCollectionMessage));
       });
     }
     if (unitId) {
-      addComponentsToContainerMutation.mutateAsync([usageKey]).catch(() => {
+      addComponentsToContainerMutation.mutateAsync([opaqueKey]).catch(() => {
         showToast(intl.formatMessage(messages.errorAssociateComponentToContainerMessage));
       });
     }
diff --git a/src/library-authoring/add-content/PickLibraryContentModal.test.tsx b/src/library-authoring/add-content/PickLibraryContentModal.test.tsx
index 80efc8cb3c..46b65ed47c 100644
--- a/src/library-authoring/add-content/PickLibraryContentModal.test.tsx
+++ b/src/library-authoring/add-content/PickLibraryContentModal.test.tsx
@@ -49,8 +49,8 @@ describe('<PickLibraryContentModal />', () => {
   });
 
   it('can pick components from the modal', async () => {
-    const mockAddComponentsToCollection = jest.fn();
-    jest.spyOn(api, 'addComponentsToCollection').mockImplementation(mockAddComponentsToCollection);
+    const mockAddItemsToCollection = jest.fn();
+    jest.spyOn(api, 'addItemsToCollection').mockImplementation(mockAddItemsToCollection);
 
     render();
 
@@ -67,7 +67,7 @@ describe('<PickLibraryContentModal />', () => {
     fireEvent.click(screen.queryAllByRole('button', { name: 'Add to Collection' })[0]);
 
     await waitFor(() => {
-      expect(mockAddComponentsToCollection).toHaveBeenCalledWith(
+      expect(mockAddItemsToCollection).toHaveBeenCalledWith(
         libraryId,
         'collectionId',
         ['lb:Axim:TEST:html:571fe018-f3ce-45c9-8f53-5dafcb422fdd'],
@@ -78,8 +78,8 @@ describe('<PickLibraryContentModal />', () => {
   });
 
   it('show error when api call fails', async () => {
-    const mockAddComponentsToCollection = jest.fn().mockRejectedValue(new Error('Failed to add components'));
-    jest.spyOn(api, 'addComponentsToCollection').mockImplementation(mockAddComponentsToCollection);
+    const mockAddItemsToCollection = jest.fn().mockRejectedValue(new Error('Failed to add components'));
+    jest.spyOn(api, 'addItemsToCollection').mockImplementation(mockAddItemsToCollection);
     render();
 
     // Wait for the content library to load
@@ -95,7 +95,7 @@ describe('<PickLibraryContentModal />', () => {
     fireEvent.click(screen.queryAllByRole('button', { name: 'Add to Collection' })[0]);
 
     await waitFor(() => {
-      expect(mockAddComponentsToCollection).toHaveBeenCalledWith(
+      expect(mockAddItemsToCollection).toHaveBeenCalledWith(
         libraryId,
         'collectionId',
         ['lb:Axim:TEST:html:571fe018-f3ce-45c9-8f53-5dafcb422fdd'],
diff --git a/src/library-authoring/add-content/PickLibraryContentModal.tsx b/src/library-authoring/add-content/PickLibraryContentModal.tsx
index 5436bf2d78..176dba8ba7 100644
--- a/src/library-authoring/add-content/PickLibraryContentModal.tsx
+++ b/src/library-authoring/add-content/PickLibraryContentModal.tsx
@@ -5,7 +5,7 @@ import { ActionRow, Button, StandardModal } from '@openedx/paragon';
 import { ToastContext } from '../../generic/toast-context';
 import { useLibraryContext } from '../common/context/LibraryContext';
 import type { SelectedComponent } from '../common/context/ComponentPickerContext';
-import { useAddComponentsToCollection } from '../data/apiHooks';
+import { useAddItemsToCollection } from '../data/apiHooks';
 import messages from './messages';
 
 interface PickLibraryContentModalFooterProps {
@@ -51,7 +51,7 @@ export const PickLibraryContentModal: React.FC<PickLibraryContentModalProps> = (
     throw new Error('libraryId and componentPicker are required');
   }
 
-  const updateComponentsMutation = useAddComponentsToCollection(libraryId, collectionId);
+  const updateComponentsMutation = useAddItemsToCollection(libraryId, collectionId);
 
   const { showToast } = useContext(ToastContext);
 
diff --git a/src/library-authoring/collections/LibraryCollectionPage.test.tsx b/src/library-authoring/collections/LibraryCollectionPage.test.tsx
index 2258e1846c..32efc69884 100644
--- a/src/library-authoring/collections/LibraryCollectionPage.test.tsx
+++ b/src/library-authoring/collections/LibraryCollectionPage.test.tsx
@@ -15,12 +15,13 @@ import {
   mockContentLibrary,
   mockXBlockFields,
   mockGetCollectionMetadata,
+  mockGetContainerMetadata,
 } from '../data/api.mocks';
 import { mockContentSearchConfig, mockGetBlockTypes } from '../../search-manager/data/api.mock';
 import { mockClipboardEmpty } from '../../generic/data/api.mock';
 import { LibraryLayout } from '..';
 import { ContentTagsDrawer } from '../../content-tags-drawer';
-import { getLibraryCollectionComponentApiUrl } from '../data/api';
+import { getLibraryCollectionItemsApiUrl } from '../data/api';
 
 let axiosMock: MockAdapter;
 let mockShowToast;
@@ -31,6 +32,7 @@ mockContentSearchConfig.applyMock();
 mockGetBlockTypes.applyMock();
 mockContentLibrary.applyMock();
 mockXBlockFields.applyMock();
+mockGetContainerMetadata.applyMock();
 
 const searchEndpoint = 'http://mock.meilisearch.local/multi-search';
 const path = '/library/:libraryId/*';
@@ -350,7 +352,7 @@ describe('<LibraryCollectionPage />', () => {
   });
 
   it('should remove component from collection and hides sidebar', async () => {
-    const url = getLibraryCollectionComponentApiUrl(
+    const url = getLibraryCollectionItemsApiUrl(
       mockContentLibrary.libraryId,
       mockCollection.collectionId,
     );
@@ -369,8 +371,38 @@ describe('<LibraryCollectionPage />', () => {
     fireEvent.click(await screen.findByText('Remove from collection'));
     await waitFor(() => {
       expect(axiosMock.history.delete.length).toEqual(1);
-      expect(mockShowToast).toHaveBeenCalledWith('Component successfully removed');
     });
+    expect(mockShowToast).toHaveBeenCalledWith('Item successfully removed');
+    // Should close sidebar as component was removed
+    await waitFor(() => expect(screen.queryByTestId('library-sidebar')).not.toBeInTheDocument());
+  });
+
+  it('should remove unit from collection and hides sidebar', async () => {
+    const url = getLibraryCollectionItemsApiUrl(
+      mockContentLibrary.libraryId,
+      mockCollection.collectionId,
+    );
+    axiosMock.onDelete(url).reply(204);
+    const displayName = 'Test Unit';
+    await renderLibraryCollectionPage();
+
+    // Wait for the unit cards to load
+    waitFor(() => expect(screen.getAllByTestId('container-card-menu-toggle').length).toBeGreaterThan(0));
+
+    // open sidebar
+    fireEvent.click(await screen.findByText(displayName));
+    await waitFor(() => expect(screen.queryByTestId('library-sidebar')).toBeInTheDocument());
+
+    // Open menu
+    fireEvent.click((await screen.findAllByTestId('container-card-menu-toggle'))[0]);
+
+    // Click remove to collection
+    fireEvent.click(screen.getByRole('button', { name: 'Remove from collection' }));
+
+    await waitFor(() => {
+      expect(axiosMock.history.delete.length).toEqual(1);
+    });
+    expect(mockShowToast).toHaveBeenCalledWith('Item successfully removed');
     // Should close sidebar as component was removed
     await waitFor(() => expect(screen.queryByTestId('library-sidebar')).not.toBeInTheDocument());
   });
diff --git a/src/library-authoring/collections/LibraryCollectionPage.tsx b/src/library-authoring/collections/LibraryCollectionPage.tsx
index 6e03de5294..f88d50d4f8 100644
--- a/src/library-authoring/collections/LibraryCollectionPage.tsx
+++ b/src/library-authoring/collections/LibraryCollectionPage.tsx
@@ -109,7 +109,9 @@ const LibraryCollectionPage = () => {
   }
 
   const { componentPickerMode } = useComponentPickerContext();
-  const { showOnlyPublished, setCollectionId, componentId } = useLibraryContext();
+  const {
+    showOnlyPublished, extraFilter: contextExtraFilter, setCollectionId, componentId,
+  } = useLibraryContext();
   const { sidebarComponentInfo, openInfoSidebar } = useSidebarContext();
 
   const {
@@ -182,6 +184,10 @@ const LibraryCollectionPage = () => {
     extraFilter.push('last_published IS NOT NULL');
   }
 
+  if (contextExtraFilter) {
+    extraFilter.push(...contextExtraFilter);
+  }
+
   return (
     <div className="d-flex">
       <div className="flex-grow-1">
diff --git a/src/library-authoring/common/context/LibraryContext.tsx b/src/library-authoring/common/context/LibraryContext.tsx
index b415d351ad..678ee310e5 100644
--- a/src/library-authoring/common/context/LibraryContext.tsx
+++ b/src/library-authoring/common/context/LibraryContext.tsx
@@ -34,6 +34,8 @@ export type LibraryContextData = {
   setUnitId: (unitId?: string) => void;
   // Only show published components
   showOnlyPublished: boolean;
+  // Additional filtering
+  extraFilter?: string[];
   // "Create New Collection" modal
   isCreateCollectionModalOpen: boolean;
   openCreateCollectionModal: () => void;
@@ -66,6 +68,7 @@ type LibraryProviderProps = {
   children?: React.ReactNode;
   libraryId: string;
   showOnlyPublished?: boolean;
+  extraFilter?: string[]
   // If set, will initialize the current collection and/or component from the current URL
   skipUrlUpdate?: boolean;
 
@@ -83,6 +86,7 @@ export const LibraryProvider = ({
   children,
   libraryId,
   showOnlyPublished = false,
+  extraFilter = [],
   skipUrlUpdate = false,
   componentPicker,
 }: LibraryProviderProps) => {
@@ -139,6 +143,7 @@ export const LibraryProvider = ({
       readOnly,
       isLoadingLibraryData,
       showOnlyPublished,
+      extraFilter,
       isCreateCollectionModalOpen,
       openCreateCollectionModal,
       closeCreateCollectionModal,
@@ -164,6 +169,7 @@ export const LibraryProvider = ({
     readOnly,
     isLoadingLibraryData,
     showOnlyPublished,
+    extraFilter,
     isCreateCollectionModalOpen,
     openCreateCollectionModal,
     closeCreateCollectionModal,
diff --git a/src/library-authoring/component-info/ComponentManagement.tsx b/src/library-authoring/component-info/ComponentManagement.tsx
index 2d740d7f1a..c0eccdc5e4 100644
--- a/src/library-authoring/component-info/ComponentManagement.tsx
+++ b/src/library-authoring/component-info/ComponentManagement.tsx
@@ -8,11 +8,11 @@ import {
 
 import { useLibraryContext } from '../common/context/LibraryContext';
 import { SidebarActions, useSidebarContext } from '../common/context/SidebarContext';
-import { useLibraryBlockMetadata } from '../data/apiHooks';
+import { ContentTagsDrawer, useContentTaxonomyTagsData } from '../../content-tags-drawer';
+import { useLibraryBlockMetadata, useUpdateComponentCollections } from '../data/apiHooks';
 import StatusWidget from '../generic/status-widget';
+import { ManageCollections } from '../generic/manage-collections';
 import messages from './messages';
-import { ContentTagsDrawer, useContentTaxonomyTagsData } from '../../content-tags-drawer';
-import ManageCollections from './ManageCollections';
 
 const ComponentManagement = () => {
   const intl = useIntl();
@@ -130,7 +130,11 @@ const ComponentManagement = () => {
           </Collapsible.Visible>
         </Collapsible.Trigger>
         <Collapsible.Body className="collapsible-body">
-          <ManageCollections usageKey={usageKey} collections={componentMetadata.collections} />
+          <ManageCollections
+            opaqueKey={usageKey}
+            collections={componentMetadata.collections}
+            useUpdateCollectionsHook={useUpdateComponentCollections}
+          />
         </Collapsible.Body>
       </Collapsible.Advanced>
     </Stack>
diff --git a/src/library-authoring/component-info/messages.ts b/src/library-authoring/component-info/messages.ts
index 7e4068d53e..9674447339 100644
--- a/src/library-authoring/component-info/messages.ts
+++ b/src/library-authoring/component-info/messages.ts
@@ -136,51 +136,6 @@ const messages = defineMessages({
     defaultMessage: 'Component Preview',
     description: 'Title for preview modal',
   },
-  manageCollectionsText: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.text',
-    defaultMessage: 'Manage Collections',
-    description: 'Header and button text for collection section in manage tab',
-  },
-  manageCollectionsAddBtnText: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.btn-text',
-    defaultMessage: 'Add to Collection',
-    description: 'Button text for collection section in manage tab',
-  },
-  manageCollectionsSearchPlaceholder: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.search-placeholder',
-    defaultMessage: 'Search',
-    description: 'Placeholder text for collection search in manage tab',
-  },
-  manageCollectionsSelectionLabel: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.selection-aria-label',
-    defaultMessage: 'Collection selection',
-    description: 'Aria label text for collection selection box',
-  },
-  manageCollectionsToComponentSuccess: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.add-success',
-    defaultMessage: 'Component collections updated',
-    description: 'Message to display on updating component collections',
-  },
-  manageCollectionsToComponentFailed: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.add-failed',
-    defaultMessage: 'Failed to update Component collections',
-    description: 'Message to display on failure of updating component collections',
-  },
-  manageCollectionsToComponentConfirmBtn: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.add-confirm-btn',
-    defaultMessage: 'Confirm',
-    description: 'Button text to confirm collections for a component',
-  },
-  manageCollectionsToComponentCancelBtn: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.add-cancel-btn',
-    defaultMessage: 'Cancel',
-    description: 'Button text to cancel collections selection for a component',
-  },
-  componentNotOrganizedIntoCollection: {
-    id: 'course-authoring.library-authoring.component.manage-tab.collections.no-collections',
-    defaultMessage: 'This component is not organized into any collection.',
-    description: 'Message to display in manage collections section when component is not part of any collection.',
-  },
   componentPickerSingleSelect: {
     id: 'course-authoring.library-authoring.component-picker.single-select',
     defaultMessage: 'Add to Course', // TODO: Change this message to a generic one?
diff --git a/src/library-authoring/component-picker/ComponentPicker.tsx b/src/library-authoring/component-picker/ComponentPicker.tsx
index 75bf178ac3..ec99b5fe42 100644
--- a/src/library-authoring/component-picker/ComponentPicker.tsx
+++ b/src/library-authoring/component-picker/ComponentPicker.tsx
@@ -38,7 +38,7 @@ const defaultSelectionChangedCallback: ComponentSelectionChangedEvent = (selecti
   window.parent.postMessage({ type: 'pickerSelectionChanged', selections }, '*');
 };
 
-type ComponentPickerProps = { libraryId?: string, showOnlyPublished?: boolean } & (
+type ComponentPickerProps = { libraryId?: string, showOnlyPublished?: boolean, extraFilter?: string[] } & (
   {
     componentPickerMode?: 'single',
     onComponentSelected?: ComponentSelectedEvent,
@@ -54,6 +54,7 @@ export const ComponentPicker: React.FC<ComponentPickerProps> = ({
   /** Restrict the component picker to a specific library */
   libraryId,
   showOnlyPublished,
+  extraFilter,
   componentPickerMode = 'single',
   /** This default callback is used to send the selected component back to the parent window,
    * when the component picker is used in an iframe.
@@ -105,6 +106,7 @@ export const ComponentPicker: React.FC<ComponentPickerProps> = ({
           <LibraryProvider
             libraryId={selectedLibrary}
             showOnlyPublished={calcShowOnlyPublished}
+            extraFilter={extraFilter}
             skipUrlUpdate
           >
             <SidebarProvider>
diff --git a/src/library-authoring/components/AddComponentWidget.tsx b/src/library-authoring/components/AddComponentWidget.tsx
new file mode 100644
index 0000000000..a6e1c0f9ba
--- /dev/null
+++ b/src/library-authoring/components/AddComponentWidget.tsx
@@ -0,0 +1,82 @@
+import { FormattedMessage, useIntl } from '@edx/frontend-platform/i18n';
+import { Button } from '@openedx/paragon';
+import {
+  AddCircleOutline,
+  CheckBoxIcon,
+  CheckBoxOutlineBlank,
+} from '@openedx/paragon/icons';
+
+import { useComponentPickerContext } from '../common/context/ComponentPickerContext';
+import messages from './messages';
+
+interface AddComponentWidgetProps {
+  usageKey: string;
+  blockType: string;
+}
+
+const AddComponentWidget = ({ usageKey, blockType }: AddComponentWidgetProps) => {
+  const intl = useIntl();
+
+  const {
+    componentPickerMode,
+    onComponentSelected,
+    addComponentToSelectedComponents,
+    removeComponentFromSelectedComponents,
+    selectedComponents,
+  } = useComponentPickerContext();
+
+  // istanbul ignore if: this should never happen
+  if (!usageKey) {
+    throw new Error('usageKey is required');
+  }
+
+  // istanbul ignore if: this should never happen
+  if (!componentPickerMode) {
+    return null;
+  }
+
+  if (componentPickerMode === 'single') {
+    return (
+      <Button
+        variant="outline-primary"
+        iconBefore={AddCircleOutline}
+        onClick={() => {
+          onComponentSelected({ usageKey, blockType });
+        }}
+      >
+        <FormattedMessage {...messages.componentPickerSingleSelectTitle} />
+      </Button>
+    );
+  }
+
+  if (componentPickerMode === 'multiple') {
+    const isChecked = selectedComponents.some((component) => component.usageKey === usageKey);
+
+    const handleChange = () => {
+      const selectedComponent = {
+        usageKey,
+        blockType,
+      };
+      if (!isChecked) {
+        addComponentToSelectedComponents(selectedComponent);
+      } else {
+        removeComponentFromSelectedComponents(selectedComponent);
+      }
+    };
+
+    return (
+      <Button
+        variant="outline-primary"
+        iconBefore={isChecked ? CheckBoxIcon : CheckBoxOutlineBlank}
+        onClick={handleChange}
+      >
+        {intl.formatMessage(messages.componentPickerMultipleSelectTitle)}
+      </Button>
+    );
+  }
+
+  // istanbul ignore next: this should never happen
+  return null;
+};
+
+export default AddComponentWidget;
diff --git a/src/library-authoring/components/ComponentCard.tsx b/src/library-authoring/components/ComponentCard.tsx
index 672a48b8bb..54380c9b3a 100644
--- a/src/library-authoring/components/ComponentCard.tsx
+++ b/src/library-authoring/components/ComponentCard.tsx
@@ -2,18 +2,12 @@ import { useCallback, useContext } from 'react';
 import { FormattedMessage, useIntl } from '@edx/frontend-platform/i18n';
 import {
   ActionRow,
-  Button,
   Dropdown,
   Icon,
   IconButton,
   useToggle,
 } from '@openedx/paragon';
-import {
-  AddCircleOutline,
-  CheckBoxIcon,
-  CheckBoxOutlineBlank,
-  MoreVert,
-} from '@openedx/paragon/icons';
+import { MoreVert } from '@openedx/paragon/icons';
 
 import { useClipboard } from '../../generic/clipboard';
 import { ToastContext } from '../../generic/toast-context';
@@ -21,13 +15,14 @@ import { type ContentHit, PublishStatus } from '../../search-manager';
 import { useComponentPickerContext } from '../common/context/ComponentPickerContext';
 import { useLibraryContext } from '../common/context/LibraryContext';
 import { SidebarActions, useSidebarContext } from '../common/context/SidebarContext';
-import { useRemoveComponentsFromCollection } from '../data/apiHooks';
+import { useRemoveItemsFromCollection } from '../data/apiHooks';
 import { useLibraryRoutes } from '../routes';
 
+import AddComponentWidget from './AddComponentWidget';
 import BaseCard from './BaseCard';
 import { canEditComponent } from './ComponentEditorModal';
-import messages from './messages';
 import ComponentDeleter from './ComponentDeleter';
+import messages from './messages';
 
 type ComponentCardProps = {
   hit: ContentHit,
@@ -50,7 +45,7 @@ export const ComponentMenu = ({ usageKey }: { usageKey: string }) => {
 
   const canEdit = usageKey && canEditComponent(usageKey);
   const { showToast } = useContext(ToastContext);
-  const removeComponentsMutation = useRemoveComponentsFromCollection(libraryId, collectionId);
+  const removeComponentsMutation = useRemoveItemsFromCollection(libraryId, collectionId);
   const [isConfirmingDelete, confirmDelete, cancelDelete] = useToggle(false);
   const { copyToClipboard } = useClipboard();
 
@@ -110,76 +105,6 @@ export const ComponentMenu = ({ usageKey }: { usageKey: string }) => {
   );
 };
 
-interface AddComponentWidgetProps {
-  usageKey: string;
-  blockType: string;
-}
-
-const AddComponentWidget = ({ usageKey, blockType }: AddComponentWidgetProps) => {
-  const intl = useIntl();
-
-  const {
-    componentPickerMode,
-    onComponentSelected,
-    addComponentToSelectedComponents,
-    removeComponentFromSelectedComponents,
-    selectedComponents,
-  } = useComponentPickerContext();
-
-  // istanbul ignore if: this should never happen
-  if (!usageKey) {
-    throw new Error('usageKey is required');
-  }
-
-  // istanbul ignore if: this should never happen
-  if (!componentPickerMode) {
-    return null;
-  }
-
-  if (componentPickerMode === 'single') {
-    return (
-      <Button
-        variant="outline-primary"
-        iconBefore={AddCircleOutline}
-        onClick={() => {
-          onComponentSelected({ usageKey, blockType });
-        }}
-      >
-        <FormattedMessage {...messages.componentPickerSingleSelectTitle} />
-      </Button>
-    );
-  }
-
-  if (componentPickerMode === 'multiple') {
-    const isChecked = selectedComponents.some((component) => component.usageKey === usageKey);
-
-    const handleChange = () => {
-      const selectedComponent = {
-        usageKey,
-        blockType,
-      };
-      if (!isChecked) {
-        addComponentToSelectedComponents(selectedComponent);
-      } else {
-        removeComponentFromSelectedComponents(selectedComponent);
-      }
-    };
-
-    return (
-      <Button
-        variant="outline-primary"
-        iconBefore={isChecked ? CheckBoxIcon : CheckBoxOutlineBlank}
-        onClick={handleChange}
-      >
-        {intl.formatMessage(messages.componentPickerMultipleSelectTitle)}
-      </Button>
-    );
-  }
-
-  // istanbul ignore next: this should never happen
-  return null;
-};
-
 const ComponentCard = ({ hit }: ComponentCardProps) => {
   const { showOnlyPublished } = useLibraryContext();
   const { openComponentInfoSidebar } = useSidebarContext();
diff --git a/src/library-authoring/components/ContainerCard.tsx b/src/library-authoring/components/ContainerCard.tsx
index b518b7077c..d25c1c5601 100644
--- a/src/library-authoring/components/ContainerCard.tsx
+++ b/src/library-authoring/components/ContainerCard.tsx
@@ -1,4 +1,4 @@
-import { useCallback, ReactNode } from 'react';
+import { ReactNode, useCallback, useContext } from 'react';
 import { FormattedMessage, useIntl } from '@edx/frontend-platform/i18n';
 import {
   ActionRow,
@@ -12,14 +12,16 @@ import { MoreVert } from '@openedx/paragon/icons';
 import { Link } from 'react-router-dom';
 
 import { getItemIcon, getComponentStyleColor } from '../../generic/block-type-utils';
+import { ToastContext } from '../../generic/toast-context';
 import { type ContainerHit, PublishStatus } from '../../search-manager';
 import { useComponentPickerContext } from '../common/context/ComponentPickerContext';
 import { useLibraryContext } from '../common/context/LibraryContext';
-import { useSidebarContext } from '../common/context/SidebarContext';
-import BaseCard from './BaseCard';
+import { SidebarActions, useSidebarContext } from '../common/context/SidebarContext';
+import { useContainerChildren, useRemoveItemsFromCollection } from '../data/apiHooks';
 import { useLibraryRoutes } from '../routes';
+import AddComponentWidget from './AddComponentWidget';
+import BaseCard from './BaseCard';
 import messages from './messages';
-import { useContainerChildren } from '../data/apiHooks';
 import ContainerDeleter from './ContainerDeleter';
 
 type ContainerMenuProps = {
@@ -30,13 +32,38 @@ const ContainerMenu = ({ hit } : ContainerMenuProps) => {
   const intl = useIntl();
   const {
     contextKey,
-    blockId,
     usageKey: containerId,
     displayName,
   } = hit;
-
+  const { libraryId, collectionId } = useLibraryContext();
+  const {
+    sidebarComponentInfo,
+    openUnitInfoSidebar,
+    closeLibrarySidebar,
+    setSidebarAction,
+  } = useSidebarContext();
+  const { showToast } = useContext(ToastContext);
   const [isConfirmingDelete, confirmDelete, cancelDelete] = useToggle(false);
 
+  const removeComponentsMutation = useRemoveItemsFromCollection(libraryId, collectionId);
+
+  const removeFromCollection = () => {
+    removeComponentsMutation.mutateAsync([containerId]).then(() => {
+      if (sidebarComponentInfo?.id === containerId) {
+        // Close sidebar if current component is open
+        closeLibrarySidebar();
+      }
+      showToast(intl.formatMessage(messages.removeComponentSucess));
+    }).catch(() => {
+      showToast(intl.formatMessage(messages.removeComponentFailure));
+    });
+  };
+
+  const showManageCollections = useCallback(() => {
+    setSidebarAction(SidebarActions.JumpToAddCollections);
+    openUnitInfoSidebar(containerId);
+  }, [setSidebarAction, openUnitInfoSidebar, containerId]);
+
   return (
     <>
       <Dropdown id="container-card-dropdown">
@@ -46,20 +73,27 @@ const ContainerMenu = ({ hit } : ContainerMenuProps) => {
           src={MoreVert}
           iconAs={Icon}
           variant="primary"
-          alt={intl.formatMessage(messages.collectionCardMenuAlt)}
+          alt={intl.formatMessage(messages.containerCardMenuAlt)}
           data-testid="container-card-menu-toggle"
         />
         <Dropdown.Menu>
           <Dropdown.Item
             as={Link}
-            to={`/library/${contextKey}/container/${blockId}`}
-            disabled
+            to={`/library/${contextKey}/unit/${containerId}`}
           >
             <FormattedMessage {...messages.menuOpen} />
           </Dropdown.Item>
           <Dropdown.Item onClick={confirmDelete}>
             <FormattedMessage {...messages.menuDeleteContainer} />
           </Dropdown.Item>
+          {collectionId && (
+            <Dropdown.Item onClick={removeFromCollection}>
+              <FormattedMessage {...messages.menuRemoveFromCollection} />
+            </Dropdown.Item>
+          )}
+          <Dropdown.Item onClick={showManageCollections}>
+            <FormattedMessage {...messages.menuAddToCollection} />
+          </Dropdown.Item>
         </Dropdown.Menu>
       </Dropdown>
       <ContainerDeleter
@@ -78,8 +112,7 @@ type ContainerCardPreviewProps = {
 };
 
 const ContainerCardPreview = ({ containerId, showMaxChildren = 5 }: ContainerCardPreviewProps) => {
-  const { libraryId } = useLibraryContext();
-  const { data, isLoading, isError } = useContainerChildren(libraryId, containerId);
+  const { data, isLoading, isError } = useContainerChildren(containerId);
   if (isLoading || isError) {
     return null;
   }
@@ -170,9 +203,13 @@ const ContainerCard = ({ hit } : ContainerCardProps) => {
       preview={<ContainerCardPreview containerId={unitId} />}
       tags={tags}
       numChildren={numChildrenCount}
-      actions={!componentPickerMode && (
+      actions={(
         <ActionRow>
-          <ContainerMenu hit={hit} />
+          {componentPickerMode ? (
+            <AddComponentWidget usageKey={unitId} blockType={itemType} />
+          ) : (
+            <ContainerMenu hit={hit} />
+          )}
         </ActionRow>
       )}
       hasUnpublishedChanges={publishStatus !== PublishStatus.Published}
diff --git a/src/library-authoring/components/messages.ts b/src/library-authoring/components/messages.ts
index ac47981364..6e897b950b 100644
--- a/src/library-authoring/components/messages.ts
+++ b/src/library-authoring/components/messages.ts
@@ -44,17 +44,17 @@ const messages = defineMessages({
   menuRemoveFromCollection: {
     id: 'course-authoring.library-authoring.component.menu.remove',
     defaultMessage: 'Remove from collection',
-    description: 'Menu item for remove a component from collection.',
+    description: 'Menu item for remove an item from collection.',
   },
   removeComponentSucess: {
     id: 'course-authoring.library-authoring.component.remove-from-collection-success',
-    defaultMessage: 'Component successfully removed',
-    description: 'Message for successful removal of component from collection.',
+    defaultMessage: 'Item successfully removed',
+    description: 'Message for successful removal of an item from collection.',
   },
   removeComponentFailure: {
     id: 'course-authoring.library-authoring.component.remove-from-collection-failure',
-    defaultMessage: 'Failed to remove Component',
-    description: 'Message for failure of removal of component from collection.',
+    defaultMessage: 'Failed to remove item',
+    description: 'Message for failure of removal of an item from collection.',
   },
   deleteComponentWarningTitle: {
     id: 'course-authoring.library-authoring.component.delete-confirmation-title',
@@ -137,7 +137,7 @@ const messages = defineMessages({
     description: 'Message to display on failure to undo delete collection',
   },
   componentPickerSingleSelectTitle: {
-    id: 'course-authoring.library-authoring.component-picker.single..title',
+    id: 'course-authoring.library-authoring.component-picker.single.title',
     defaultMessage: 'Add',
     description: 'Button title for picking a component',
   },
diff --git a/src/library-authoring/containers/ContainerInfoHeader.tsx b/src/library-authoring/containers/ContainerInfoHeader.tsx
index cec30a8c45..3ac06045a2 100644
--- a/src/library-authoring/containers/ContainerInfoHeader.tsx
+++ b/src/library-authoring/containers/ContainerInfoHeader.tsx
@@ -18,7 +18,7 @@ const ContainerInfoHeader = () => {
   const intl = useIntl();
   const [inputIsActive, setIsActive] = useState(false);
 
-  const { libraryId, readOnly } = useLibraryContext();
+  const { readOnly } = useLibraryContext();
   const { sidebarComponentInfo } = useSidebarContext();
 
   const containerId = sidebarComponentInfo?.id;
@@ -27,7 +27,7 @@ const ContainerInfoHeader = () => {
     throw new Error('containerId is required');
   }
 
-  const { data: container } = useContainer(libraryId, containerId);
+  const { data: container } = useContainer(containerId);
 
   const updateMutation = useUpdateContainer(containerId);
   const { showToast } = useContext(ToastContext);
diff --git a/src/library-authoring/containers/ContainerOrganize.test.tsx b/src/library-authoring/containers/ContainerOrganize.test.tsx
index 079aab0237..8fb366fa12 100644
--- a/src/library-authoring/containers/ContainerOrganize.test.tsx
+++ b/src/library-authoring/containers/ContainerOrganize.test.tsx
@@ -23,14 +23,18 @@ mockGetContainerMetadata.applyMock();
 mockContentLibrary.applyMock();
 mockContentTaxonomyTagsData.applyMock();
 
-const { containerIdForTags } = mockGetContainerMetadata;
-
-const render = (libraryId?: string) => baseRender(<ContainerOrganize />, {
+const render = ({
+  libraryId = mockContentLibrary.libraryId,
+  containerId = mockGetContainerMetadata.containerId,
+}: {
+  libraryId?: string;
+  containerId?: string;
+}) => baseRender(<ContainerOrganize />, {
   extraWrapper: ({ children }) => (
-    <LibraryProvider libraryId={libraryId || mockContentLibrary.libraryId}>
+    <LibraryProvider libraryId={libraryId}>
       <SidebarProvider
         initialSidebarComponentInfo={{
-          id: containerIdForTags,
+          id: containerId,
           type: SidebarBodyComponentId.ComponentInfo,
         }}
       >
@@ -61,7 +65,7 @@ describe('<ContainerOrganize />', () => {
         ...getConfig(),
         ENABLE_TAGGING_TAXONOMY_PAGES: 'true',
       });
-      render(libraryId);
+      render({ libraryId });
       await waitFor(() => {
         expect(screen.getByText(`Mocked ${expected} ContentTagsDrawer`)).toBeInTheDocument();
       });
@@ -73,7 +77,12 @@ describe('<ContainerOrganize />', () => {
       ...getConfig(),
       ENABLE_TAGGING_TAXONOMY_PAGES: 'true',
     });
-    render();
+    render({ containerId: mockGetContainerMetadata.containerIdForTags });
     expect(await screen.findByText('Tags (6)')).toBeInTheDocument();
   });
+
+  it('should render collection count in collection info section', async () => {
+    render({ containerId: mockGetContainerMetadata.containerIdWithCollections });
+    expect(await screen.findByText('Collections (1)')).toBeInTheDocument();
+  });
 });
diff --git a/src/library-authoring/containers/ContainerOrganize.tsx b/src/library-authoring/containers/ContainerOrganize.tsx
index 4a4e2706ed..e6585785e2 100644
--- a/src/library-authoring/containers/ContainerOrganize.tsx
+++ b/src/library-authoring/containers/ContainerOrganize.tsx
@@ -1,4 +1,4 @@
-import { useMemo } from 'react';
+import { useMemo, useEffect } from 'react';
 import { useIntl } from '@edx/frontend-platform/i18n';
 import { getConfig } from '@edx/frontend-platform';
 import {
@@ -8,20 +8,27 @@ import {
   useToggle,
 } from '@openedx/paragon';
 import {
-  ExpandLess, ExpandMore, Tag,
+  BookOpen,
+  ExpandLess,
+  ExpandMore,
+  Tag,
 } from '@openedx/paragon/icons';
 
 import { ContentTagsDrawer, useContentTaxonomyTagsData } from '../../content-tags-drawer';
+import { ManageCollections } from '../generic/manage-collections';
+import { useContainer, useUpdateContainerCollections } from '../data/apiHooks';
 import { useLibraryContext } from '../common/context/LibraryContext';
-import { useSidebarContext } from '../common/context/SidebarContext';
+import { SidebarActions, useSidebarContext } from '../common/context/SidebarContext';
 import messages from './messages';
 
 const ContainerOrganize = () => {
   const intl = useIntl();
-  const [tagsCollapseIsOpen, , , toggleTags] = useToggle(true);
+  const [tagsCollapseIsOpen, ,setTagsCollapseClose, toggleTags] = useToggle(true);
+  const [collectionsCollapseIsOpen, setCollectionsCollapseOpen, , toggleCollections] = useToggle(true);
 
   const { readOnly } = useLibraryContext();
-  const { sidebarComponentInfo } = useSidebarContext();
+  const { sidebarComponentInfo, sidebarAction } = useSidebarContext();
+  const jumpToCollections = sidebarAction === SidebarActions.JumpToAddCollections;
 
   const containerId = sidebarComponentInfo?.id;
   // istanbul ignore if: this should never happen
@@ -29,8 +36,17 @@ const ContainerOrganize = () => {
     throw new Error('containerId is required');
   }
 
+  const { data: containerMetadata } = useContainer(containerId);
   const { data: componentTags } = useContentTaxonomyTagsData(containerId);
 
+  useEffect(() => {
+    if (jumpToCollections) {
+      setTagsCollapseClose();
+      setCollectionsCollapseOpen();
+    }
+  }, [jumpToCollections, tagsCollapseIsOpen, collectionsCollapseIsOpen]);
+
+  const collectionsCount = useMemo(() => containerMetadata?.collections?.length || 0, [containerMetadata]);
   const tagsCount = useMemo(() => {
     if (!componentTags) {
       return 0;
@@ -50,6 +66,11 @@ const ContainerOrganize = () => {
     return result;
   }, [componentTags]);
 
+  // istanbul ignore if: this should never happen
+  if (!containerMetadata) {
+    return null;
+  }
+
   return (
     <Stack gap={3}>
       {[true, 'true'].includes(getConfig().ENABLE_TAGGING_TAXONOMY_PAGES)
@@ -82,6 +103,33 @@ const ContainerOrganize = () => {
             </Collapsible.Body>
           </Collapsible.Advanced>
         )}
+      <Collapsible.Advanced
+        open={collectionsCollapseIsOpen}
+        className="collapsible-card border-0"
+      >
+        <Collapsible.Trigger
+          onClick={toggleCollections}
+          className="collapsible-trigger d-flex justify-content-between p-2"
+        >
+          <Stack gap={1} direction="horizontal">
+            <Icon src={BookOpen} />
+            {intl.formatMessage(messages.organizeTabCollectionsTitle, { count: collectionsCount })}
+          </Stack>
+          <Collapsible.Visible whenClosed>
+            <Icon src={ExpandMore} />
+          </Collapsible.Visible>
+          <Collapsible.Visible whenOpen>
+            <Icon src={ExpandLess} />
+          </Collapsible.Visible>
+        </Collapsible.Trigger>
+        <Collapsible.Body className="collapsible-body">
+          <ManageCollections
+            opaqueKey={containerId}
+            collections={containerMetadata.collections}
+            useUpdateCollectionsHook={useUpdateContainerCollections}
+          />
+        </Collapsible.Body>
+      </Collapsible.Advanced>
     </Stack>
   );
 };
diff --git a/src/library-authoring/containers/UnitInfo.tsx b/src/library-authoring/containers/UnitInfo.tsx
index 9ca05bb8ea..a6385009a2 100644
--- a/src/library-authoring/containers/UnitInfo.tsx
+++ b/src/library-authoring/containers/UnitInfo.tsx
@@ -9,13 +9,14 @@ import {
   IconButton,
   useToggle,
 } from '@openedx/paragon';
+import { useEffect, useCallback } from 'react';
 import { MoreVert } from '@openedx/paragon/icons';
-import { useCallback } from 'react';
 
 import { useComponentPickerContext } from '../common/context/ComponentPickerContext';
 import { useLibraryContext } from '../common/context/LibraryContext';
 import {
   type UnitInfoTab,
+  SidebarActions,
   UNIT_INFO_TABS,
   isUnitInfoTab,
   useSidebarContext,
@@ -69,11 +70,17 @@ const UnitMenu = ({ containerId, displayName }: ContainerMenuProps) => {
 const UnitInfo = () => {
   const intl = useIntl();
 
-  const { libraryId, setUnitId } = useLibraryContext();
+  const { setUnitId } = useLibraryContext();
   const { componentPickerMode } = useComponentPickerContext();
   const {
-    defaultTab, hiddenTabs, sidebarComponentInfo, sidebarTab, setSidebarTab,
+    defaultTab,
+    hiddenTabs,
+    sidebarTab,
+    setSidebarTab,
+    sidebarComponentInfo,
+    sidebarAction,
   } = useSidebarContext();
+  const jumpToCollections = sidebarAction === SidebarActions.JumpToAddCollections;
   const { insideUnit, navigateTo } = useLibraryRoutes();
 
   const tab: UnitInfoTab = (
@@ -81,7 +88,7 @@ const UnitInfo = () => {
   ) ? sidebarTab : defaultTab.unit;
 
   const unitId = sidebarComponentInfo?.id;
-  const { data: container } = useContainer(libraryId, unitId);
+  const { data: container } = useContainer(unitId);
 
   const handleOpenUnit = useCallback(() => {
     if (componentPickerMode) {
@@ -105,12 +112,14 @@ const UnitInfo = () => {
     );
   }, [hiddenTabs, defaultTab.unit, unitId]);
 
-  // istanbul ignore if: this should never happen
-  if (!unitId) {
-    throw new Error('unitId is required');
-  }
+  useEffect(() => {
+    // Show Organize tab if JumpToAddCollections action is set in sidebarComponentInfo
+    if (jumpToCollections) {
+      setSidebarTab(UNIT_INFO_TABS.Organize);
+    }
+  }, [jumpToCollections, setSidebarTab]);
 
-  if (!container) {
+  if (!container || !unitId) {
     return null;
   }
 
diff --git a/src/library-authoring/containers/messages.ts b/src/library-authoring/containers/messages.ts
index be3158d126..b47bdebffb 100644
--- a/src/library-authoring/containers/messages.ts
+++ b/src/library-authoring/containers/messages.ts
@@ -21,6 +21,11 @@ const messages = defineMessages({
     defaultMessage: 'Tags ({count})',
     description: 'Title for tags section in organize tab',
   },
+  organizeTabCollectionsTitle: {
+    id: 'course-authoring.library-authoring.container-sidebar.organize-tab.collections.title',
+    defaultMessage: 'Collections ({count})',
+    description: 'Title for collections section in organize tab',
+  },
   settingsTabTitle: {
     id: 'course-authoring.library-authoring.container-sidebar.settings-tab.title',
     defaultMessage: 'Settings',
diff --git a/src/library-authoring/create-unit/CreateUnitModal.tsx b/src/library-authoring/create-unit/CreateUnitModal.tsx
index a20f20e5db..9902948e2a 100644
--- a/src/library-authoring/create-unit/CreateUnitModal.tsx
+++ b/src/library-authoring/create-unit/CreateUnitModal.tsx
@@ -6,33 +6,40 @@ import {
 } from '@openedx/paragon';
 import { useIntl } from '@edx/frontend-platform/i18n';
 import { Formik } from 'formik';
+import { useNavigate } from 'react-router';
 import * as Yup from 'yup';
 import FormikControl from '../../generic/FormikControl';
 import { useLibraryContext } from '../common/context/LibraryContext';
 import messages from './messages';
-import { useCreateLibraryContainer } from '../data/apiHooks';
+import { useAddItemsToCollection, useCreateLibraryContainer } from '../data/apiHooks';
 import { ToastContext } from '../../generic/toast-context';
 import LoadingButton from '../../generic/loading-button';
 import { ContainerType } from '../../generic/key-utils';
 
 const CreateUnitModal = () => {
   const intl = useIntl();
+  const navigate = useNavigate();
   const {
+    collectionId,
     libraryId,
     isCreateUnitModalOpen,
     closeCreateUnitModal,
   } = useLibraryContext();
   const create = useCreateLibraryContainer(libraryId);
+  const updateItemsMutation = useAddItemsToCollection(libraryId, collectionId);
   const { showToast } = React.useContext(ToastContext);
 
   const handleCreate = React.useCallback(async (values) => {
     try {
-      await create.mutateAsync({
+      const container = await create.mutateAsync({
         containerType: ContainerType.Unit,
         ...values,
       });
-      // TODO: Navigate to the new unit
-      // navigate(`/library/${libraryId}/units/${data.key}`);
+      if (collectionId) {
+        await updateItemsMutation.mutateAsync([container.containerKey]);
+      }
+      // Navigate to the new unit
+      navigate(`/library/${libraryId}/unit/${container.containerKey}`);
       showToast(intl.formatMessage(messages.createUnitSuccess));
     } catch (error) {
       showToast(intl.formatMessage(messages.createUnitError));
diff --git a/src/library-authoring/data/api.mocks.ts b/src/library-authoring/data/api.mocks.ts
index 54fb567a7b..5b5ba4348b 100644
--- a/src/library-authoring/data/api.mocks.ts
+++ b/src/library-authoring/data/api.mocks.ts
@@ -480,6 +480,8 @@ export async function mockGetContainerMetadata(containerId: string): Promise<api
       });
     case mockGetContainerMetadata.containerIdLoading:
       return new Promise(() => { });
+    case mockGetContainerMetadata.containerIdWithCollections:
+      return Promise.resolve(mockGetContainerMetadata.containerDataWithCollections);
     default:
       return Promise.resolve(mockGetContainerMetadata.containerData);
   }
@@ -488,6 +490,7 @@ mockGetContainerMetadata.containerId = 'lct:org:lib:unit:test-unit-9a207';
 mockGetContainerMetadata.containerIdError = 'lct:org:lib:unit:container_error';
 mockGetContainerMetadata.containerIdLoading = 'lct:org:lib:unit:container_loading';
 mockGetContainerMetadata.containerIdForTags = mockContentTaxonomyTagsData.largeTagsId;
+mockGetContainerMetadata.containerIdWithCollections = 'lct:org:lib:unit:container_collections';
 mockGetContainerMetadata.containerData = {
   containerKey: 'lct:org:lib:unit:test-unit-9a2072',
   containerType: 'unit',
@@ -502,6 +505,11 @@ mockGetContainerMetadata.containerData = {
   hasUnpublishedChanges: true,
   collections: [],
 } satisfies api.Container;
+mockGetContainerMetadata.containerDataWithCollections = {
+  ...mockGetContainerMetadata.containerData,
+  containerKey: mockGetContainerMetadata.containerIdWithCollections,
+  collections: [{ title: 'My first collection', key: 'my-first-collection' }],
+} satisfies api.Container;
 /** Apply this mock. Returns a spy object that can tell you if it's been called. */
 mockGetContainerMetadata.applyMock = () => {
   jest.spyOn(api, 'getContainerMetadata').mockImplementation(mockGetContainerMetadata);
diff --git a/src/library-authoring/data/api.ts b/src/library-authoring/data/api.ts
index ca8ec0aef3..30feaa9bcf 100644
--- a/src/library-authoring/data/api.ts
+++ b/src/library-authoring/data/api.ts
@@ -41,7 +41,7 @@ export const getLibraryBlockMetadataUrl = (usageKey: string) => `${getApiBaseUrl
 export const getLibraryBlockRestoreUrl = (usageKey: string) => `${getLibraryBlockMetadataUrl(usageKey)}restore/`;
 
 /**
- * Get the URL for library block metadata.
+ * Get the URL for library block collections.
  */
 export const getLibraryBlockCollectionsUrl = (usageKey: string) => `${getLibraryBlockMetadataUrl(usageKey)}collections/`;
 
@@ -89,9 +89,9 @@ export const getLibraryCollectionsApiUrl = (libraryId: string) => `${getApiBaseU
  */
 export const getLibraryCollectionApiUrl = (libraryId: string, collectionId: string) => `${getLibraryCollectionsApiUrl(libraryId)}${collectionId}/`;
 /**
- * Get the URL for the collection components API.
+ * Get the URL for the collection items API.
  */
-export const getLibraryCollectionComponentApiUrl = (libraryId: string, collectionId: string) => `${getLibraryCollectionApiUrl(libraryId, collectionId)}components/`;
+export const getLibraryCollectionItemsApiUrl = (libraryId: string, collectionId: string) => `${getLibraryCollectionApiUrl(libraryId, collectionId)}items/`;
 /**
  * Get the API URL for restoring deleted collection.
  */
@@ -120,6 +120,10 @@ export const getLibraryContainerRestoreApiUrl = (containerId: string) => `${getL
  * Get the URL for a single container children api.
  */
 export const getLibraryContainerChildrenApiUrl = (containerId: string) => `${getLibraryContainerApiUrl(containerId)}children/`;
+/**
+ * Get the URL for library container collections.
+ */
+export const getLibraryContainerCollectionsUrl = (containerId: string) => `${getLibraryContainerApiUrl(containerId)}collections/`;
 
 export interface ContentLibrary {
   id: string;
@@ -533,19 +537,19 @@ export async function updateCollectionMetadata(
 }
 
 /**
- * Add components to collection.
+ * Add items to collection.
  */
-export async function addComponentsToCollection(libraryId: string, collectionId: string, usageKeys: string[]) {
-  await getAuthenticatedHttpClient().patch(getLibraryCollectionComponentApiUrl(libraryId, collectionId), {
+export async function addItemsToCollection(libraryId: string, collectionId: string, usageKeys: string[]) {
+  await getAuthenticatedHttpClient().patch(getLibraryCollectionItemsApiUrl(libraryId, collectionId), {
     usage_keys: usageKeys,
   });
 }
 
 /**
- * Remove components from collection.
+ * Remove items from collection.
  */
-export async function removeComponentsFromCollection(libraryId: string, collectionId: string, usageKeys: string[]) {
-  await getAuthenticatedHttpClient().delete(getLibraryCollectionComponentApiUrl(libraryId, collectionId), {
+export async function removeItemsFromCollection(libraryId: string, collectionId: string, usageKeys: string[]) {
+  await getAuthenticatedHttpClient().delete(getLibraryCollectionItemsApiUrl(libraryId, collectionId), {
     data: { usage_keys: usageKeys },
   });
 }
@@ -583,9 +587,13 @@ export interface CreateLibraryContainerDataRequest {
 /**
  * Create a library container
  */
-export async function createLibraryContainer(libraryId: string, containerData: CreateLibraryContainerDataRequest) {
+export async function createLibraryContainer(
+  libraryId: string,
+  containerData: CreateLibraryContainerDataRequest,
+): Promise<Container> {
   const client = getAuthenticatedHttpClient();
-  await client.post(getLibraryContainersApiUrl(libraryId), snakeCaseObject(containerData));
+  const { data } = await client.post(getLibraryContainersApiUrl(libraryId), snakeCaseObject(containerData));
+  return camelCaseObject(data);
 }
 
 export interface Container {
@@ -661,3 +669,12 @@ export async function addComponentsToContainer(containerId: string, componentIds
     snakeCaseObject({ usageKeys: componentIds }),
   );
 }
+
+/**
+ * Update container collections.
+ */
+export async function updateContainerCollections(containerId: string, collectionKeys: string[]) {
+  await getAuthenticatedHttpClient().patch(getLibraryContainerCollectionsUrl(containerId), {
+    collection_keys: collectionKeys,
+  });
+}
diff --git a/src/library-authoring/data/apiHooks.test.tsx b/src/library-authoring/data/apiHooks.test.tsx
index f1a8b3820a..e4c6a7dbae 100644
--- a/src/library-authoring/data/apiHooks.test.tsx
+++ b/src/library-authoring/data/apiHooks.test.tsx
@@ -8,7 +8,7 @@ import MockAdapter from 'axios-mock-adapter';
 import {
   getCommitLibraryChangesUrl,
   getCreateLibraryBlockUrl,
-  getLibraryCollectionComponentApiUrl,
+  getLibraryCollectionItemsApiUrl,
   getLibraryCollectionsApiUrl,
   getLibraryCollectionApiUrl,
   getBlockTypesMetaDataUrl,
@@ -21,7 +21,7 @@ import {
   useCreateLibraryBlock,
   useCreateLibraryCollection,
   useRevertLibraryChanges,
-  useAddComponentsToCollection,
+  useAddItemsToCollection,
   useCollection,
   useBlockTypesMetadata,
   useContainer,
@@ -111,9 +111,9 @@ describe('library api hooks', () => {
   it('should add components to collection', async () => {
     const libraryId = 'lib:org:1';
     const collectionId = 'my-first-collection';
-    const url = getLibraryCollectionComponentApiUrl(libraryId, collectionId);
+    const url = getLibraryCollectionItemsApiUrl(libraryId, collectionId);
     axiosMock.onPatch(url).reply(200);
-    const { result } = renderHook(() => useAddComponentsToCollection(libraryId, collectionId), { wrapper });
+    const { result } = renderHook(() => useAddItemsToCollection(libraryId, collectionId), { wrapper });
     await result.current.mutateAsync(['some-usage-key']);
 
     expect(axiosMock.history.patch[0].url).toEqual(url);
@@ -147,12 +147,11 @@ describe('library api hooks', () => {
   });
 
   it('should get container metadata', async () => {
-    const libraryId = 'lib:org:1';
     const containerId = 'lct:lib:org:unit:unit1';
     const url = getLibraryContainerApiUrl(containerId);
 
     axiosMock.onGet(url).reply(200, { 'test-data': 'test-value' });
-    const { result } = renderHook(() => useContainer(libraryId, containerId), { wrapper });
+    const { result } = renderHook(() => useContainer(containerId), { wrapper });
     await waitFor(() => {
       expect(result.current.isLoading).toBeFalsy();
     });
@@ -185,7 +184,6 @@ describe('library api hooks', () => {
   });
 
   it('should get container children', async () => {
-    const libraryId = 'lib:org:1';
     const containerId = 'lct:lib:org:unit:unit1';
     const url = getLibraryContainerChildrenApiUrl(containerId);
 
@@ -221,7 +219,7 @@ describe('library api hooks', () => {
         collections: ['col2'],
       },
     ]);
-    const { result } = renderHook(() => useContainerChildren(libraryId, containerId), { wrapper });
+    const { result } = renderHook(() => useContainerChildren(containerId), { wrapper });
     await waitFor(() => {
       expect(result.current.isLoading).toBeFalsy();
     });
@@ -261,14 +259,13 @@ describe('library api hooks', () => {
   });
 
   it('should add components to container', async () => {
-    const libraryId = 'lib:org:1';
     const componentId = 'lb:org:lib:html:1';
     const containerId = 'ltc:org:lib:unit:1';
 
     const url = getLibraryContainerChildrenApiUrl(containerId);
 
     axiosMock.onPost(url).reply(200);
-    const { result } = renderHook(() => useAddComponentsToContainer(libraryId, containerId), { wrapper });
+    const { result } = renderHook(() => useAddComponentsToContainer(containerId), { wrapper });
     await result.current.mutateAsync([componentId]);
 
     expect(axiosMock.history.post[0].url).toEqual(url);
diff --git a/src/library-authoring/data/apiHooks.ts b/src/library-authoring/data/apiHooks.ts
index a0a9696984..e20671a2b2 100644
--- a/src/library-authoring/data/apiHooks.ts
+++ b/src/library-authoring/data/apiHooks.ts
@@ -33,7 +33,7 @@ import {
   getXBlockOLX,
   updateCollectionMetadata,
   type UpdateCollectionComponentsRequest,
-  addComponentsToCollection,
+  addItemsToCollection,
   type CreateLibraryCollectionDataRequest,
   getCollectionMetadata,
   deleteCollection,
@@ -41,7 +41,7 @@ import {
   setXBlockOLX,
   getXBlockAssets,
   updateComponentCollections,
-  removeComponentsFromCollection,
+  removeItemsFromCollection,
   publishXBlock,
   deleteXBlockAsset,
   restoreLibraryBlock,
@@ -55,6 +55,7 @@ import {
   type UpdateContainerDataRequest,
   restoreContainer,
   getLibraryContainerChildren,
+  updateContainerCollections,
 } from './api';
 import { VersionSpec } from '../LibraryBlock';
 
@@ -94,21 +95,21 @@ export const libraryAuthoringQueryKeys = {
     libraryId,
     collectionId,
   ],
-  container: (libraryId?: string, containerId?: string) => [
+  blockTypes: (libraryId?: string) => [
     ...libraryAuthoringQueryKeys.all,
+    'blockTypes',
     libraryId,
-    containerId,
   ],
-  containerChildren: (libraryId?: string, containerId?: string) => [
+  container: (containerId?: string) => [
     ...libraryAuthoringQueryKeys.all,
-    libraryId,
+    'container',
     containerId,
-    'children',
   ],
-  blockTypes: (libraryId?: string) => [
+  containerChildren: (containerId?: string) => [
     ...libraryAuthoringQueryKeys.all,
-    'blockTypes',
-    libraryId,
+    'container',
+    containerId,
+    'children',
   ],
 };
 
@@ -128,15 +129,6 @@ export const xblockQueryKeys = {
   componentDownstreamLinks: (usageKey: string) => [...xblockQueryKeys.xblock(usageKey), 'downstreamLinks'],
 };
 
-export const containerQueryKeys = {
-  all: ['container', 'children'],
-  /**
-   * Base key for data specific to a container
-   */
-  container: (usageKey?: string) => [...containerQueryKeys.all, usageKey],
-  children: (usageKey?: string) => [...containerQueryKeys.all, usageKey, 'children'],
-};
-
 /**
  * Tell react-query to refresh its cache of any data related to the given
  * component (XBlock).
@@ -274,7 +266,7 @@ export const useRevertLibraryChanges = () => {
 /**
  * Hook to fetch a content library's team members
  */
-export const useLibraryTeam = (libraryId: string | undefined) => (
+export const useLibraryTeam = (libraryId?: string) => (
   useQuery({
     queryKey: libraryAuthoringQueryKeys.libraryTeam(libraryId),
     queryFn: () => getLibraryTeam(libraryId!),
@@ -285,7 +277,7 @@ export const useLibraryTeam = (libraryId: string | undefined) => (
 /**
  * Hook to fetch the list of XBlock types that can be added to this library.
  */
-export const useBlockTypesMetadata = (libraryId: string | undefined) => (
+export const useBlockTypesMetadata = (libraryId?: string) => (
   useQuery({
     queryKey: libraryAuthoringQueryKeys.blockTypes(libraryId),
     queryFn: () => getBlockTypes(libraryId!),
@@ -509,14 +501,14 @@ export const useUpdateCollection = (libraryId: string, collectionId: string) =>
 };
 
 /**
- * Use this mutation to add components to a collection in a library
+ * Use this mutation to add items to a collection in a library
  */
-export const useAddComponentsToCollection = (libraryId?: string, collectionId?: string) => {
+export const useAddItemsToCollection = (libraryId?: string, collectionId?: string) => {
   const queryClient = useQueryClient();
   return useMutation({
     mutationFn: async (usageKeys: string[]) => {
       if (libraryId !== undefined && collectionId !== undefined) {
-        return addComponentsToCollection(libraryId, collectionId, usageKeys);
+        return addItemsToCollection(libraryId, collectionId, usageKeys);
       }
       return undefined;
     },
@@ -529,14 +521,14 @@ export const useAddComponentsToCollection = (libraryId?: string, collectionId?:
 };
 
 /**
- * Use this mutation to remove components from a collection in a library
+ * Use this mutation to remove items from a collection in a library
  */
-export const useRemoveComponentsFromCollection = (libraryId?: string, collectionId?: string) => {
+export const useRemoveItemsFromCollection = (libraryId?: string, collectionId?: string) => {
   const queryClient = useQueryClient();
   return useMutation({
     mutationFn: async (usageKeys: string[]) => {
       if (libraryId !== undefined && collectionId !== undefined) {
-        return removeComponentsFromCollection(libraryId, collectionId, usageKeys);
+        return removeItemsFromCollection(libraryId, collectionId, usageKeys);
       }
       return undefined;
     },
@@ -579,8 +571,9 @@ export const useRestoreCollection = (libraryId: string, collectionId: string) =>
 /**
  * Use this mutation to update collections related a component in a library
  */
-export const useUpdateComponentCollections = (libraryId: string, usageKey: string) => {
+export const useUpdateComponentCollections = (usageKey: string) => {
   const queryClient = useQueryClient();
+  const libraryId = getLibraryId(usageKey);
   return useMutation({
     mutationFn: async (collectionKeys: string[]) => updateComponentCollections(usageKey, collectionKeys),
     onSettled: () => {
@@ -606,10 +599,10 @@ export const useCreateLibraryContainer = (libraryId: string) => {
 /**
  * Get the metadata for a container in a library
  */
-export const useContainer = (libraryId?: string, containerId?: string) => (
+export const useContainer = (containerId?: string) => (
   useQuery({
-    enabled: !!libraryId && !!containerId,
-    queryKey: libraryAuthoringQueryKeys.container(libraryId, containerId),
+    enabled: !!containerId,
+    queryKey: libraryAuthoringQueryKeys.container(containerId!),
     queryFn: () => getContainerMetadata(containerId!),
   })
 );
@@ -626,7 +619,7 @@ export const useUpdateContainer = (containerId: string) => {
       // NOTE: We invalidate the library query here because we need to update the library's
       // container list.
       queryClient.invalidateQueries({ predicate: (query) => libraryQueryPredicate(query, libraryId) });
-      queryClient.invalidateQueries({ queryKey: libraryAuthoringQueryKeys.container(libraryId, containerId) });
+      queryClient.invalidateQueries({ queryKey: libraryAuthoringQueryKeys.container(containerId) });
     },
   });
 };
@@ -663,10 +656,10 @@ export const useRestoreContainer = (containerId: string) => {
 /**
  * Get the metadata and children for a container in a library
  */
-export const useContainerChildren = (libraryId?: string, containerId?: string) => (
+export const useContainerChildren = (containerId?: string) => (
   useQuery({
-    enabled: !!libraryId && !!containerId,
-    queryKey: libraryAuthoringQueryKeys.containerChildren(libraryId, containerId),
+    enabled: !!containerId,
+    queryKey: libraryAuthoringQueryKeys.containerChildren(containerId),
     queryFn: () => getLibraryContainerChildren(containerId!),
   })
 );
@@ -674,7 +667,7 @@ export const useContainerChildren = (libraryId?: string, containerId?: string) =
 /**
  * Use this mutation to add components to a container
  */
-export const useAddComponentsToContainer = (libraryId?: string, containerId?: string) => {
+export const useAddComponentsToContainer = (containerId?: string) => {
   const queryClient = useQueryClient();
   return useMutation({
     mutationFn: async (componentIds: string[]) => {
@@ -684,7 +677,22 @@ export const useAddComponentsToContainer = (libraryId?: string, containerId?: st
       return undefined;
     },
     onSettled: () => {
-      queryClient.invalidateQueries({ queryKey: libraryAuthoringQueryKeys.containerChildren(libraryId, containerId) });
+      queryClient.invalidateQueries({ queryKey: libraryAuthoringQueryKeys.containerChildren(containerId!) });
+    },
+  });
+};
+
+/**
+ * Use this mutation to update collections related a container in a library
+ */
+export const useUpdateContainerCollections = (containerId: string) => {
+  const queryClient = useQueryClient();
+  const libraryId = getLibraryId(containerId);
+  return useMutation({
+    mutationFn: async (collectionKeys: string[]) => updateContainerCollections(containerId, collectionKeys),
+    onSettled: () => {
+      queryClient.invalidateQueries({ queryKey: libraryAuthoringQueryKeys.container(containerId) });
+      queryClient.invalidateQueries({ predicate: (query) => libraryQueryPredicate(query, libraryId) });
     },
   });
 };
diff --git a/src/library-authoring/component-info/ManageCollections.test.tsx b/src/library-authoring/generic/manage-collections/ManageCollections.test.tsx
similarity index 61%
rename from src/library-authoring/component-info/ManageCollections.test.tsx
rename to src/library-authoring/generic/manage-collections/ManageCollections.test.tsx
index 790fb0a993..b73dd0d837 100644
--- a/src/library-authoring/component-info/ManageCollections.test.tsx
+++ b/src/library-authoring/generic/manage-collections/ManageCollections.test.tsx
@@ -2,25 +2,27 @@ import fetchMock from 'fetch-mock-jest';
 
 import userEvent from '@testing-library/user-event';
 import MockAdapter from 'axios-mock-adapter/types';
+import { mockContentSearchConfig } from '../../../search-manager/data/api.mock';
 import {
   initializeMocks,
   render as baseRender,
   screen,
   waitFor,
-} from '../../testUtils';
-import mockCollectionsResults from '../__mocks__/collection-search.json';
-import { mockContentSearchConfig } from '../../search-manager/data/api.mock';
-import { mockContentLibrary, mockLibraryBlockMetadata } from '../data/api.mocks';
+} from '../../../testUtils';
+import mockCollectionsResults from '../../__mocks__/collection-search.json';
+import { LibraryProvider } from '../../common/context/LibraryContext';
+import { SidebarProvider } from '../../common/context/SidebarContext';
+import { getLibraryBlockCollectionsUrl, getLibraryContainerCollectionsUrl } from '../../data/api';
+import { useUpdateComponentCollections, useUpdateContainerCollections } from '../../data/apiHooks';
+import { mockContentLibrary, mockLibraryBlockMetadata, mockGetContainerMetadata } from '../../data/api.mocks';
 import ManageCollections from './ManageCollections';
-import { LibraryProvider } from '../common/context/LibraryContext';
-import { SidebarProvider } from '../common/context/SidebarContext';
-import { getLibraryBlockCollectionsUrl } from '../data/api';
 
 let axiosMock: MockAdapter;
 let mockShowToast;
 
 mockContentLibrary.applyMock();
 mockLibraryBlockMetadata.applyMock();
+mockGetContainerMetadata.applyMock();
 mockContentSearchConfig.applyMock();
 
 const render = (ui: React.ReactElement) => baseRender(ui, {
@@ -56,12 +58,13 @@ describe('<ManageCollections />', () => {
     });
   });
 
-  it('should show all collections in library and allow users to select for the current component ', async () => {
+  it('should show all collections in library and allow users to select for the current component', async () => {
     const url = getLibraryBlockCollectionsUrl(mockLibraryBlockMetadata.usageKeyWithCollections);
     axiosMock.onPatch(url).reply(200);
     render(<ManageCollections
-      usageKey={mockLibraryBlockMetadata.usageKeyWithCollections}
+      opaqueKey={mockLibraryBlockMetadata.usageKeyWithCollections}
       collections={[{ title: 'My first collection', key: 'my-first-collection' }]}
+      useUpdateCollectionsHook={useUpdateComponentCollections}
     />);
     const manageBtn = await screen.findByRole('button', { name: 'Manage Collections' });
     userEvent.click(manageBtn);
@@ -73,10 +76,36 @@ describe('<ManageCollections />', () => {
     userEvent.click(confirmBtn);
     await waitFor(() => {
       expect(axiosMock.history.patch.length).toEqual(1);
-      expect(mockShowToast).toHaveBeenCalledWith('Component collections updated');
-      expect(JSON.parse(axiosMock.history.patch[0].data)).toEqual({
-        collection_keys: ['my-first-collection', 'my-second-collection'],
-      });
+    });
+    expect(mockShowToast).toHaveBeenCalledWith('Item collections updated');
+    expect(JSON.parse(axiosMock.history.patch[0].data)).toEqual({
+      collection_keys: ['my-first-collection', 'my-second-collection'],
+    });
+    expect(screen.queryByRole('search')).not.toBeInTheDocument();
+  });
+
+  it('should show all collections in library and allow users to select for the current container', async () => {
+    const url = getLibraryContainerCollectionsUrl(mockGetContainerMetadata.containerIdWithCollections);
+    axiosMock.onPatch(url).reply(200);
+    render(<ManageCollections
+      opaqueKey={mockGetContainerMetadata.containerIdWithCollections}
+      collections={[{ title: 'My first collection', key: 'my-first-collection' }]}
+      useUpdateCollectionsHook={useUpdateContainerCollections}
+    />);
+    const manageBtn = await screen.findByRole('button', { name: 'Manage Collections' });
+    userEvent.click(manageBtn);
+    await waitFor(() => { expect(fetchMock).toHaveFetchedTimes(1, searchEndpoint, 'post'); });
+    expect(screen.queryByRole('search')).toBeInTheDocument();
+    const secondCollection = await screen.findByRole('button', { name: 'My second collection' });
+    userEvent.click(secondCollection);
+    const confirmBtn = await screen.findByRole('button', { name: 'Confirm' });
+    userEvent.click(confirmBtn);
+    await waitFor(() => {
+      expect(axiosMock.history.patch.length).toEqual(1);
+    });
+    expect(mockShowToast).toHaveBeenCalledWith('Item collections updated');
+    expect(JSON.parse(axiosMock.history.patch[0].data)).toEqual({
+      collection_keys: ['my-first-collection', 'my-second-collection'],
     });
     expect(screen.queryByRole('search')).not.toBeInTheDocument();
   });
@@ -85,8 +114,9 @@ describe('<ManageCollections />', () => {
     const url = getLibraryBlockCollectionsUrl(mockLibraryBlockMetadata.usageKeyWithCollections);
     axiosMock.onPatch(url).reply(400);
     render(<ManageCollections
-      usageKey={mockLibraryBlockMetadata.usageKeyWithCollections}
+      opaqueKey={mockLibraryBlockMetadata.usageKeyWithCollections}
       collections={[]}
+      useUpdateCollectionsHook={useUpdateComponentCollections}
     />);
     screen.logTestingPlaygroundURL();
     const manageBtn = await screen.findByRole('button', { name: 'Add to Collection' });
@@ -99,11 +129,11 @@ describe('<ManageCollections />', () => {
     userEvent.click(confirmBtn);
     await waitFor(() => {
       expect(axiosMock.history.patch.length).toEqual(1);
-      expect(JSON.parse(axiosMock.history.patch[0].data)).toEqual({
-        collection_keys: ['my-second-collection'],
-      });
-      expect(mockShowToast).toHaveBeenCalledWith('Failed to update Component collections');
     });
+    expect(JSON.parse(axiosMock.history.patch[0].data)).toEqual({
+      collection_keys: ['my-second-collection'],
+    });
+    expect(mockShowToast).toHaveBeenCalledWith('Failed to update item collections');
     expect(screen.queryByRole('search')).not.toBeInTheDocument();
   });
 
@@ -111,8 +141,9 @@ describe('<ManageCollections />', () => {
     const url = getLibraryBlockCollectionsUrl(mockLibraryBlockMetadata.usageKeyWithCollections);
     axiosMock.onPatch(url).reply(400);
     render(<ManageCollections
-      usageKey={mockLibraryBlockMetadata.usageKeyWithCollections}
+      opaqueKey={mockLibraryBlockMetadata.usageKeyWithCollections}
       collections={[]}
+      useUpdateCollectionsHook={useUpdateComponentCollections}
     />);
     const manageBtn = await screen.findByRole('button', { name: 'Add to Collection' });
     userEvent.click(manageBtn);
@@ -124,8 +155,8 @@ describe('<ManageCollections />', () => {
     userEvent.click(cancelBtn);
     await waitFor(() => {
       expect(axiosMock.history.patch.length).toEqual(0);
-      expect(mockShowToast).not.toHaveBeenCalled();
     });
+    expect(mockShowToast).not.toHaveBeenCalled();
     expect(screen.queryByRole('search')).not.toBeInTheDocument();
   });
 });
diff --git a/src/library-authoring/component-info/ManageCollections.tsx b/src/library-authoring/generic/manage-collections/ManageCollections.tsx
similarity index 81%
rename from src/library-authoring/component-info/ManageCollections.tsx
rename to src/library-authoring/generic/manage-collections/ManageCollections.tsx
index 1ab32c8b93..41bc36ce7c 100644
--- a/src/library-authoring/component-info/ManageCollections.tsx
+++ b/src/library-authoring/generic/manage-collections/ManageCollections.tsx
@@ -1,5 +1,6 @@
 import { useContext, useState } from 'react';
 import { FormattedMessage, useIntl } from '@edx/frontend-platform/i18n';
+import type { UseMutationResult } from '@tanstack/react-query';
 import {
   Button, Icon, Scrollable, SelectableBox, Stack, StatefulButton, useCheckboxSetValues,
 } from '@openedx/paragon';
@@ -10,24 +11,29 @@ import {
   SearchKeywordsField,
   SearchSortWidget,
   useSearchContext,
-} from '../../search-manager';
+} from '../../../search-manager';
+import { ToastContext } from '../../../generic/toast-context';
+import { CollectionMetadata } from '../../data/api';
+import { useLibraryContext } from '../../common/context/LibraryContext';
+import { SidebarActions, useSidebarContext } from '../../common/context/SidebarContext';
 import messages from './messages';
-import { useUpdateComponentCollections } from '../data/apiHooks';
-import { ToastContext } from '../../generic/toast-context';
-import { CollectionMetadata } from '../data/api';
-import { useLibraryContext } from '../common/context/LibraryContext';
-import { SidebarActions, useSidebarContext } from '../common/context/SidebarContext';
 
 interface ManageCollectionsProps {
-  usageKey: string;
+  opaqueKey: string;
   collections: CollectionMetadata[],
+  useUpdateCollectionsHook: (opaqueKey: string) => UseMutationResult<void, unknown, string[], unknown>;
 }
 
 interface CollectionsDrawerProps extends ManageCollectionsProps {
   onClose: () => void;
 }
 
-const CollectionsSelectableBox = ({ usageKey, collections, onClose }: CollectionsDrawerProps) => {
+const CollectionsSelectableBox = ({
+  opaqueKey,
+  collections,
+  useUpdateCollectionsHook,
+  onClose,
+}: CollectionsDrawerProps) => {
   const type = 'checkbox';
   const intl = useIntl();
   const { hits } = useSearchContext();
@@ -39,9 +45,7 @@ const CollectionsSelectableBox = ({ usageKey, collections, onClose }: Collection
   }] = useCheckboxSetValues(collectionKeys);
   const [btnState, setBtnState] = useState('default');
 
-  const { libraryId } = useLibraryContext();
-
-  const updateCollectionsMutation = useUpdateComponentCollections(libraryId, usageKey);
+  const updateCollectionsMutation = useUpdateCollectionsHook(opaqueKey);
 
   const handleConfirmation = () => {
     setBtnState('pending');
@@ -107,7 +111,12 @@ const CollectionsSelectableBox = ({ usageKey, collections, onClose }: Collection
   );
 };
 
-const AddToCollectionsDrawer = ({ usageKey, collections, onClose }: CollectionsDrawerProps) => {
+const AddToCollectionsDrawer = ({
+  opaqueKey,
+  collections,
+  useUpdateCollectionsHook,
+  onClose,
+}: CollectionsDrawerProps) => {
   const intl = useIntl();
   const { libraryId } = useLibraryContext();
 
@@ -128,19 +137,20 @@ const AddToCollectionsDrawer = ({ usageKey, collections, onClose }: CollectionsD
           />
           <SearchSortWidget iconOnly />
         </Stack>
-        {/* Set key to update selection when component usageKey changes */}
+        {/* Set key to update selection when entity opaqueKey changes */}
         <CollectionsSelectableBox
-          usageKey={usageKey}
+          opaqueKey={opaqueKey}
           collections={collections}
+          useUpdateCollectionsHook={useUpdateCollectionsHook}
           onClose={onClose}
-          key={usageKey}
+          key={opaqueKey}
         />
       </Stack>
     </SearchContextProvider>
   );
 };
 
-const ComponentCollections = ({ collections, onManageClick }: {
+const EntityCollections = ({ collections, onManageClick }: {
   collections?: string[];
   onManageClick: () => void;
 }) => {
@@ -190,7 +200,7 @@ const ComponentCollections = ({ collections, onManageClick }: {
   );
 };
 
-const ManageCollections = ({ usageKey, collections }: ManageCollectionsProps) => {
+const ManageCollections = ({ opaqueKey, collections, useUpdateCollectionsHook }: ManageCollectionsProps) => {
   const { sidebarAction, resetSidebarAction, setSidebarAction } = useSidebarContext();
   const collectionNames = collections.map((collection) => collection.title);
 
@@ -198,12 +208,13 @@ const ManageCollections = ({ usageKey, collections }: ManageCollectionsProps) =>
     sidebarAction === SidebarActions.JumpToAddCollections
       ? (
         <AddToCollectionsDrawer
-          usageKey={usageKey}
+          opaqueKey={opaqueKey}
           collections={collections}
+          useUpdateCollectionsHook={useUpdateCollectionsHook}
           onClose={() => resetSidebarAction()}
         />
       ) : (
-        <ComponentCollections
+        <EntityCollections
           collections={collectionNames}
           onManageClick={() => setSidebarAction(SidebarActions.JumpToAddCollections)}
         />
diff --git a/src/library-authoring/generic/manage-collections/index.tsx b/src/library-authoring/generic/manage-collections/index.tsx
new file mode 100644
index 0000000000..ee943733e1
--- /dev/null
+++ b/src/library-authoring/generic/manage-collections/index.tsx
@@ -0,0 +1 @@
+export { default as ManageCollections } from './ManageCollections';
diff --git a/src/library-authoring/generic/manage-collections/messages.ts b/src/library-authoring/generic/manage-collections/messages.ts
new file mode 100644
index 0000000000..c9b998be47
--- /dev/null
+++ b/src/library-authoring/generic/manage-collections/messages.ts
@@ -0,0 +1,51 @@
+import { defineMessages } from '@edx/frontend-platform/i18n';
+
+const messages = defineMessages({
+  manageCollectionsText: {
+    id: 'course-authoring.library-authoring.manage-collections.title',
+    defaultMessage: 'Manage Collections',
+    description: 'Header and button text for the manage collection widget',
+  },
+  manageCollectionsAddBtnText: {
+    id: 'course-authoring.library-authoring.manage-collections.btn-text',
+    defaultMessage: 'Add to Collection',
+    description: 'Button text for collection section in the manage collections widget',
+  },
+  manageCollectionsSearchPlaceholder: {
+    id: 'course-authoring.library-authoring.manage-collections.search-placeholder',
+    defaultMessage: 'Search',
+    description: 'Placeholder text for collection search in the manage collections widget',
+  },
+  manageCollectionsSelectionLabel: {
+    id: 'course-authoring.library-authoring.manage-collections.selection-aria-label',
+    defaultMessage: 'Collection selection',
+    description: 'Aria label text for collection selection box',
+  },
+  manageCollectionsToComponentSuccess: {
+    id: 'course-authoring.library-authoring.manage-collections.add-success',
+    defaultMessage: 'Item collections updated',
+    description: 'Message to display on updating item collections',
+  },
+  manageCollectionsToComponentFailed: {
+    id: 'course-authoring.library-authoring.manage-collections.add-failed',
+    defaultMessage: 'Failed to update item collections',
+    description: 'Message to display on failure of updating item collections',
+  },
+  manageCollectionsToComponentConfirmBtn: {
+    id: 'course-authoring.library-authoring.manage-collections.add-confirm-btn',
+    defaultMessage: 'Confirm',
+    description: 'Button text to confirm adding collections for an item',
+  },
+  manageCollectionsToComponentCancelBtn: {
+    id: 'course-authoring.library-authoring.manage-collections.add-cancel-btn',
+    defaultMessage: 'Cancel',
+    description: 'Button text to cancel collections selection for am item',
+  },
+  componentNotOrganizedIntoCollection: {
+    id: 'course-authoring.library-authoring.manage-collections.no-collections',
+    defaultMessage: 'This item is not organized into any collection.',
+    description: 'Message to display in the manage collections widget when an item is not part of any collection.',
+  },
+});
+
+export default messages;
diff --git a/src/library-authoring/units/LibraryUnitBlocks.tsx b/src/library-authoring/units/LibraryUnitBlocks.tsx
index 6efc5cc6da..30252a36b0 100644
--- a/src/library-authoring/units/LibraryUnitBlocks.tsx
+++ b/src/library-authoring/units/LibraryUnitBlocks.tsx
@@ -31,7 +31,6 @@ export const LibraryUnitBlocks = () => {
   const { navigateTo } = useLibraryRoutes();
 
   const {
-    libraryId,
     unitId,
     showOnlyPublished,
     componentId,
@@ -49,7 +48,7 @@ export const LibraryUnitBlocks = () => {
     isLoading,
     isError,
     error,
-  } = useContainerChildren(libraryId, unitId);
+  } = useContainerChildren(unitId);
 
   useEffect(() => setOrderedBlocks(blocks || []), [blocks]);
 
@@ -70,7 +69,7 @@ export const LibraryUnitBlocks = () => {
   };
 
   const onTagSidebarClose = () => {
-    queryClient.invalidateQueries(libraryAuthoringQueryKeys.containerChildren(libraryId, unitId));
+    queryClient.invalidateQueries(libraryAuthoringQueryKeys.containerChildren(unitId));
     closeManageTagsDrawer();
   };
 
diff --git a/src/library-authoring/units/LibraryUnitPage.tsx b/src/library-authoring/units/LibraryUnitPage.tsx
index 5e31875edc..5a46e909ed 100644
--- a/src/library-authoring/units/LibraryUnitPage.tsx
+++ b/src/library-authoring/units/LibraryUnitPage.tsx
@@ -121,7 +121,7 @@ export const LibraryUnitPage = () => {
     isLoading,
     isError,
     error,
-  } = useContainer(libraryId, unitId);
+  } = useContainer(unitId);
 
   // Only show loading if unit or library data is not fetched from index yet
   if (isLibLoading || isLoading) {