diff --git a/e2e/organization.spec.ts b/e2e/organization.spec.ts
index d2386577..78541c25 100644
--- a/e2e/organization.spec.ts
+++ b/e2e/organization.spec.ts
@@ -9,7 +9,10 @@ async function goToOrganizationSettings(page) {
 
 async function createTimeEntry(page, duration: string) {
     await page.goto(PLAYWRIGHT_BASE_URL + '/time');
-    await page.getByRole('button', { name: 'Manual time entry' }).click();
+
+    // Open the dropdown menu and click "Manual time entry"
+    await page.getByRole('button', { name: 'Time entry actions' }).click();
+    await page.getByRole('menuitem', { name: 'Manual time entry' }).click();
 
     // Fill in the time entry details
     await page.getByTestId('time_entry_description').fill('Test time entry');
diff --git a/e2e/reporting.spec.ts b/e2e/reporting.spec.ts
index 0cfa872c..4c3a777d 100644
--- a/e2e/reporting.spec.ts
+++ b/e2e/reporting.spec.ts
@@ -26,7 +26,10 @@ async function createTimeEntryWithProject(page: Page, projectName: string, durat
 
     // Then create the time entry
     await goToTimeOverview(page);
-    await page.getByRole('button', { name: 'Manual time entry' }).click();
+
+    // Open the dropdown menu and click "Manual time entry"
+    await page.getByRole('button', { name: 'Time entry actions' }).click();
+    await page.getByRole('menuitem', { name: 'Manual time entry' }).click();
 
     // Fill in the time entry details
     await page
@@ -52,7 +55,10 @@ async function createTimeEntryWithProject(page: Page, projectName: string, durat
 
 async function createTimeEntryWithTag(page: Page, tagName: string, duration: string) {
     await goToTimeOverview(page);
-    await page.getByRole('button', { name: 'Manual time entry' }).click();
+
+    // Open the dropdown menu and click "Manual time entry"
+    await page.getByRole('button', { name: 'Time entry actions' }).click();
+    await page.getByRole('menuitem', { name: 'Manual time entry' }).click();
 
     // Fill in the time entry details
     await page
@@ -81,7 +87,10 @@ async function createTimeEntryWithBillableStatus(
     duration: string
 ) {
     await goToTimeOverview(page);
-    await page.getByRole('button', { name: 'Manual time entry' }).click();
+
+    // Open the dropdown menu and click "Manual time entry"
+    await page.getByRole('button', { name: 'Time entry actions' }).click();
+    await page.getByRole('menuitem', { name: 'Manual time entry' }).click();
 
     // Fill in the time entry details
     await page
diff --git a/resources/js/Components/TimeTracker.vue b/resources/js/Components/TimeTracker.vue
index 6498af65..0aec12df 100644
--- a/resources/js/Components/TimeTracker.vue
+++ b/resources/js/Components/TimeTracker.vue
@@ -16,12 +16,25 @@ import { useProjectsStore } from '@/utils/useProjects';
 import { useTasksStore } from '@/utils/useTasks';
 import { useTagsStore } from '@/utils/useTags';
 import TimeTrackerControls from '@/packages/ui/src/TimeTracker/TimeTrackerControls.vue';
-import type { CreateClientBody, CreateProjectBody, Project } from '@/packages/api/src';
+import type {
+    CreateClientBody,
+    CreateProjectBody,
+    CreateTimeEntryBody,
+    Project,
+    Tag,
+} from '@/packages/api/src';
 import TimeTrackerRunningInDifferentOrganizationOverlay from '@/packages/ui/src/TimeTracker/TimeTrackerRunningInDifferentOrganizationOverlay.vue';
+import TimeTrackerMoreOptionsDropdown from '@/packages/ui/src/TimeTracker/TimeTrackerMoreOptionsDropdown.vue';
+import TimeEntryCreateModal from '@/packages/ui/src/TimeEntry/TimeEntryCreateModal.vue';
 import { useClientsStore } from '@/utils/useClients';
 import { getOrganizationCurrencyString } from '@/utils/money';
 import { isAllowedToPerformPremiumAction } from '@/utils/billing';
 import { canCreateProjects } from '@/utils/permissions';
+import { ref } from 'vue';
+import { useTimeEntriesStore } from '@/utils/useTimeEntries';
+import { useMutation, useQueryClient } from '@tanstack/vue-query';
+import { api } from '@/packages/api/src';
+import { useNotificationsStore } from '@/utils/notification';
 
 const page = usePage<{
     auth: {
@@ -47,6 +60,8 @@ const emit = defineEmits<{
     change: [];
 }>();
 
+const showManualTimeEntryModal = ref(false);
+
 watch(isActive, () => {
     if (isActive.value) {
         startLiveTimer();
@@ -93,14 +108,64 @@ function switchToTimeEntryOrganization() {
         switchOrganization(currentTimeEntry.value.organization_id);
     }
 }
-async function createTag(tag: string) {
+async function createTag(tag: string): Promise<Tag | undefined> {
     return await useTagsStore().createTag(tag);
 }
 
+async function createTimeEntry(timeEntry: Omit<CreateTimeEntryBody, 'member_id'>) {
+    await useTimeEntriesStore().createTimeEntry(timeEntry);
+    showManualTimeEntryModal.value = false;
+}
+
+const { handleApiRequestNotifications } = useNotificationsStore();
+const queryClient = useQueryClient();
+
+const deleteTimeEntryMutation = useMutation({
+    mutationFn: async (timeEntryId: string) => {
+        const organizationId = getCurrentOrganizationId();
+        if (!organizationId) {
+            throw new Error('No organization selected');
+        }
+        return await api.deleteTimeEntry(undefined, {
+            params: {
+                organization: organizationId,
+                timeEntry: timeEntryId,
+            },
+        });
+    },
+    onSuccess: async () => {
+        await currentTimeEntryStore.fetchCurrentTimeEntry();
+        await useTimeEntriesStore().fetchTimeEntries();
+        queryClient.invalidateQueries({ queryKey: ['timeEntry'] });
+        queryClient.invalidateQueries({ queryKey: ['timeEntries'] });
+    },
+});
+
+async function discardCurrentTimeEntry() {
+    if (currentTimeEntry.value.id) {
+        await handleApiRequestNotifications(
+            () => deleteTimeEntryMutation.mutateAsync(currentTimeEntry.value.id),
+            'Time entry discarded successfully',
+            'Failed to discard time entry'
+        );
+    }
+}
+
 const { tags } = storeToRefs(useTagsStore());
 </script>
 
 <template>
+    <TimeEntryCreateModal
+        v-model:show="showManualTimeEntryModal"
+        :enable-estimated-time="isAllowedToPerformPremiumAction()"
+        :create-project="createProject"
+        :create-client="createClient"
+        :create-tag="createTag"
+        :create-time-entry="createTimeEntry"
+        :projects
+        :tasks
+        :tags
+        :clients></TimeEntryCreateModal>
     <CardTitle title="Time Tracker" :icon="ClockIcon"></CardTitle>
     <div class="relative">
         <TimeTrackerRunningInDifferentOrganizationOverlay
@@ -109,24 +174,34 @@ const { tags } = storeToRefs(useTagsStore());
                 switchToTimeEntryOrganization
             "></TimeTrackerRunningInDifferentOrganizationOverlay>
 
-        <TimeTrackerControls
-            v-model:current-time-entry="currentTimeEntry"
-            v-model:live-timer="now"
-            :create-project
-            :enable-estimated-time="isAllowedToPerformPremiumAction()"
-            :can-create-project="canCreateProjects()"
-            :create-client
-            :clients
-            :tags
-            :tasks
-            :projects
-            :create-tag
-            :is-active
-            :currency="getOrganizationCurrencyString()"
-            @start-live-timer="startLiveTimer"
-            @stop-live-timer="stopLiveTimer"
-            @start-timer="setActiveState(true)"
-            @stop-timer="setActiveState(false)"
-            @update-time-entry="updateTimeEntry"></TimeTrackerControls>
+        <div class="flex w-full items-center gap-2">
+            <div class="flex w-full items-center gap-2">
+                <div class="flex-1">
+                    <TimeTrackerControls
+                        v-model:current-time-entry="currentTimeEntry"
+                        v-model:live-timer="now"
+                        :create-project
+                        :enable-estimated-time="isAllowedToPerformPremiumAction()"
+                        :can-create-project="canCreateProjects()"
+                        :create-client
+                        :clients
+                        :tags
+                        :tasks
+                        :projects
+                        :create-tag
+                        :is-active
+                        :currency="getOrganizationCurrencyString()"
+                        @start-live-timer="startLiveTimer"
+                        @stop-live-timer="stopLiveTimer"
+                        @start-timer="setActiveState(true)"
+                        @stop-timer="setActiveState(false)"
+                        @update-time-entry="updateTimeEntry"></TimeTrackerControls>
+                </div>
+                <TimeTrackerMoreOptionsDropdown
+                    :has-active-timer="isActive"
+                    @manual-entry="showManualTimeEntryModal = true"
+                    @discard="discardCurrentTimeEntry"></TimeTrackerMoreOptionsDropdown>
+            </div>
+        </div>
     </div>
 </template>
diff --git a/resources/js/Pages/Time.vue b/resources/js/Pages/Time.vue
index eb89fad9..f555e10d 100644
--- a/resources/js/Pages/Time.vue
+++ b/resources/js/Pages/Time.vue
@@ -15,8 +15,6 @@ import type {
 } from '@/packages/api/src';
 import { useElementVisibility } from '@vueuse/core';
 import { ClockIcon } from '@heroicons/vue/20/solid';
-import SecondaryButton from '@/packages/ui/src/Buttons/SecondaryButton.vue';
-import { PlusIcon } from '@heroicons/vue/16/solid';
 import LoadingSpinner from '@/packages/ui/src/LoadingSpinner.vue';
 import { useCurrentTimeEntryStore } from '@/utils/useCurrentTimeEntry';
 import { useTasksStore } from '@/utils/useTasks';
@@ -24,7 +22,6 @@ import { useProjectsStore } from '@/utils/useProjects';
 import TimeEntryGroupedTable from '@/packages/ui/src/TimeEntry/TimeEntryGroupedTable.vue';
 import { useTagsStore } from '@/utils/useTags';
 import { useClientsStore } from '@/utils/useClients';
-import TimeEntryCreateModal from '@/packages/ui/src/TimeEntry/TimeEntryCreateModal.vue';
 import { getOrganizationCurrencyString } from '@/utils/money';
 import TimeEntryMassActionRow from '@/packages/ui/src/TimeEntry/TimeEntryMassActionRow.vue';
 import type { UpdateMultipleTimeEntriesChangeset } from '@/packages/api/src';
@@ -73,7 +70,6 @@ onMounted(async () => {
     await timeEntriesStore.fetchTimeEntries();
 });
 
-const showManualTimeEntryModal = ref(false);
 const projectStore = useProjectsStore();
 const { projects } = storeToRefs(projectStore);
 const taskStore = useTasksStore();
@@ -105,33 +101,9 @@ function deleteSelected() {
 </script>
 
 <template>
-    <TimeEntryCreateModal
-        v-model:show="showManualTimeEntryModal"
-        :enable-estimated-time="isAllowedToPerformPremiumAction()"
-        :create-project="createProject"
-        :create-client="createClient"
-        :create-tag="createTag"
-        :create-time-entry="createTimeEntry"
-        :projects
-        :tasks
-        :tags
-        :clients></TimeEntryCreateModal>
     <AppLayout title="Dashboard" data-testid="time_view">
         <MainContainer class="pt-5 lg:pt-8 pb-4 lg:pb-6">
-            <div
-                class="lg:flex items-end lg:divide-x divide-default-background-separator divide-y lg:divide-y-0 space-y-2 lg:space-y-0 lg:space-x-2">
-                <div class="flex-1">
-                    <TimeTracker></TimeTracker>
-                </div>
-                <div class="pb-2 pt-2 lg:pt-0 lg:pl-4 flex justify-center">
-                    <SecondaryButton
-                        class="w-full text-center flex justify-center"
-                        :icon="PlusIcon"
-                        @click="showManualTimeEntryModal = true"
-                        >Manual time entry
-                    </SecondaryButton>
-                </div>
-            </div>
+            <TimeTracker></TimeTracker>
         </MainContainer>
         <TimeEntryMassActionRow
             :selected-time-entries="selectedTimeEntries"
diff --git a/resources/js/packages/ui/src/TimeTracker/TimeTrackerMoreOptionsDropdown.vue b/resources/js/packages/ui/src/TimeTracker/TimeTrackerMoreOptionsDropdown.vue
new file mode 100644
index 00000000..4c837553
--- /dev/null
+++ b/resources/js/packages/ui/src/TimeTracker/TimeTrackerMoreOptionsDropdown.vue
@@ -0,0 +1,58 @@
+<script setup lang="ts">
+import { PlusIcon, XMarkIcon } from '@heroicons/vue/20/solid';
+import {
+    DropdownMenu,
+    DropdownMenuContent,
+    DropdownMenuItem,
+    DropdownMenuTrigger,
+} from '@/Components/ui/dropdown-menu';
+
+const props = defineProps<{
+    hasActiveTimer: boolean;
+}>();
+
+const emit = defineEmits<{
+    manualEntry: [];
+    discard: [];
+}>();
+</script>
+
+<template>
+    <DropdownMenu>
+        <DropdownMenuTrigger as-child>
+            <button
+                class="focus-visible:outline-none focus-visible:bg-card-background rounded-full focus-visible:ring-2 focus-visible:ring-ring hover:bg-card-background hover:opacity-100 opacity-20 transition-opacity text-text-secondary"
+                aria-label="Time entry actions">
+                <svg
+                    class="h-8 w-8 p-1 rounded-full"
+                    viewBox="0 0 24 24"
+                    xmlns="http://www.w3.org/2000/svg">
+                    <path
+                        fill="none"
+                        stroke="currentColor"
+                        stroke-linecap="round"
+                        stroke-linejoin="round"
+                        stroke-width="1.5"
+                        d="M12 5.92A.96.96 0 1 0 12 4a.96.96 0 0 0 0 1.92m0 7.04a.96.96 0 1 0 0-1.92a.96.96 0 0 0 0 1.92M12 20a.96.96 0 1 0 0-1.92a.96.96 0 0 0 0 1.92" />
+                </svg>
+            </button>
+        </DropdownMenuTrigger>
+        <DropdownMenuContent class="min-w-[150px]" align="end">
+            <DropdownMenuItem
+                class="flex items-center space-x-3 cursor-pointer"
+                @click="emit('manualEntry')">
+                <PlusIcon class="w-5" />
+                <span>Manual time entry</span>
+            </DropdownMenuItem>
+            <DropdownMenuItem
+                v-if="props.hasActiveTimer"
+                class="flex items-center space-x-3 cursor-pointer text-destructive focus:text-destructive"
+                @click="emit('discard')">
+                <XMarkIcon class="w-5" />
+                <span>Discard</span>
+            </DropdownMenuItem>
+        </DropdownMenuContent>
+    </DropdownMenu>
+</template>
+
+<style scoped></style>