diff --git a/webapp/app.ironcalc.com/frontend/src/App.tsx b/webapp/app.ironcalc.com/frontend/src/App.tsx
index 7ed931f..03419b3 100644
--- a/webapp/app.ironcalc.com/frontend/src/App.tsx
+++ b/webapp/app.ironcalc.com/frontend/src/App.tsx
@@ -24,7 +24,6 @@ import { IronCalc, IronCalcIcon, Model, init } from "@ironcalc/workbook";
 function App() {
   const [model, setModel] = useState<Model | null>(null);
   const [showWelcomeDialog, setShowWelcomeDialog] = useState(false);
-  const [isTemplateOnlyDialog, setIsTemplateOnlyDialog] = useState(false);
 
   useEffect(() => {
     async function start() {
@@ -59,7 +58,6 @@ function App() {
         const newModel = loadSelectedModelFromStorage();
         if (!newModel) {
           setShowWelcomeDialog(true);
-          setIsTemplateOnlyDialog(false); // Full dialog for first-time usage
           const createdModel = new Model("template", "en", "UTC");
           setModel(createdModel);
         } else {
@@ -109,7 +107,6 @@ function App() {
         }}
         newModelFromTemplate={() => {
           setShowWelcomeDialog(true);
-          setIsTemplateOnlyDialog(true); // Template-only dialog for "New from template"
         }}
         setModel={(uuid: string) => {
           const newModel = selectModelFromStorage(uuid);
@@ -133,7 +130,6 @@ function App() {
               setModel(createdModel);
             }
             setShowWelcomeDialog(false);
-            setIsTemplateOnlyDialog(false);
           }}
           onSelectTemplate={async (templateId) => {
             switch (templateId) {
@@ -151,10 +147,7 @@ function App() {
               }
             }
             setShowWelcomeDialog(false);
-            setIsTemplateOnlyDialog(false);
           }}
-          showHeader={!isTemplateOnlyDialog}
-          showNewSection={!isTemplateOnlyDialog}
         />
       )}
     </Wrapper>
diff --git a/webapp/app.ironcalc.com/frontend/src/components/FileMenu.tsx b/webapp/app.ironcalc.com/frontend/src/components/FileMenu.tsx
index fa674dc..ea8ad24 100644
--- a/webapp/app.ironcalc.com/frontend/src/components/FileMenu.tsx
+++ b/webapp/app.ironcalc.com/frontend/src/components/FileMenu.tsx
@@ -4,6 +4,7 @@ import { Check, FileDown, FileUp, Plus, Table2, Trash2 } from "lucide-react";
 import { useRef, useState } from "react";
 import DeleteWorkbookDialog from "./DeleteWorkbookDialog";
 import UploadFileDialog from "./UploadFileDialog";
+import TemplatesDialog from "./WelcomeDialog/TemplatesDialog";
 import { getModelsMetadata, getSelectedUuid } from "./storage";
 
 export function FileMenu(props: {
@@ -21,7 +22,7 @@ export function FileMenu(props: {
   const uuids = Object.keys(models);
   const selectedUuid = getSelectedUuid();
   const [isDeleteDialogOpen, setDeleteDialogOpen] = useState(false);
-
+  const [isTemplatesDialogOpen, setTemplatesDialogOpen] = useState(false);
   const elements = [];
   for (const uuid of uuids) {
     elements.push(
@@ -97,7 +98,7 @@ export function FileMenu(props: {
         </MenuItemWrapper>
         <MenuItemWrapper
           onClick={() => {
-            props.newModelFromTemplate();
+            setTemplatesDialogOpen(true);
             setMenuOpen(false);
           }}
         >
@@ -165,6 +166,17 @@ export function FileMenu(props: {
           workbookName={selectedUuid ? models[selectedUuid] : ""}
         />
       </Modal>
+      <Modal
+        open={isTemplatesDialogOpen}
+        onClose={() => setTemplatesDialogOpen(false)}
+        aria-labelledby="templates-dialog-title"
+        aria-describedby="templates-dialog-description"
+      >
+        <TemplatesDialog
+          onClose={() => setTemplatesDialogOpen(false)}
+          onSelectTemplate={props.newModelFromTemplate}
+        />
+      </Modal>
     </>
   );
 }
diff --git a/webapp/app.ironcalc.com/frontend/src/components/WelcomeDialog/TemplatesDialog.tsx b/webapp/app.ironcalc.com/frontend/src/components/WelcomeDialog/TemplatesDialog.tsx
new file mode 100644
index 0000000..6e4edd1
--- /dev/null
+++ b/webapp/app.ironcalc.com/frontend/src/components/WelcomeDialog/TemplatesDialog.tsx
@@ -0,0 +1,145 @@
+import { Dialog, styled } from "@mui/material";
+import { House, TicketsPlane, X } from "lucide-react";
+import { useState } from "react";
+import TemplatesListItem from "./TemplatesListItem";
+
+function TemplatesDialog(properties: {
+  onClose: () => void;
+  onSelectTemplate: (templateId: string) => void;
+}) {
+  const [selectedTemplate, setSelectedTemplate] = useState<string>("");
+
+  const handleClose = () => {
+    properties.onClose();
+  };
+
+  const handleTemplateSelect = (templateId: string) => {
+    setSelectedTemplate(templateId);
+  };
+
+  return (
+    <DialogWrapper open={true} onClose={() => {}}>
+      <DialogHeader>
+        <span style={{ flexGrow: 2, marginLeft: 12 }}>Choose a template</span>
+        <Cross
+          style={{ marginRight: 12 }}
+          onClick={handleClose}
+          title="Close Dialog"
+          tabIndex={0}
+          onKeyDown={(event) => event.key === "Enter" && properties.onClose()}
+        >
+          <X />
+        </Cross>
+      </DialogHeader>
+      <DialogContent>
+        <TemplatesListWrapper>
+          <TemplatesListItem
+            title="Mortgage calculator"
+            description="Estimate payments, interest, and overall cost."
+            icon={<House />}
+            iconColor="#2F80ED"
+            active={selectedTemplate === "mortgage_calculator"}
+            onClick={() => handleTemplateSelect("mortgage_calculator")}
+          />
+          <TemplatesListItem
+            title="Travel expenses tracker"
+            description="Track trip costs and stay on budget."
+            icon={<TicketsPlane />}
+            iconColor="#EB5757"
+            active={selectedTemplate === "travel_expenses_tracker"}
+            onClick={() => handleTemplateSelect("travel_expenses_tracker")}
+          />
+        </TemplatesListWrapper>
+      </DialogContent>
+      <DialogFooter>
+        <DialogFooterButton
+          onClick={() => properties.onSelectTemplate(selectedTemplate)}
+        >
+          Create workbook
+        </DialogFooterButton>
+      </DialogFooter>
+    </DialogWrapper>
+  );
+}
+
+const DialogWrapper = styled(Dialog)`
+    font-family: Inter;
+    .MuiDialog-paper {
+        width: 440px;
+        border-radius: 12px;
+        margin: 16px;
+        border: 1px solid #e0e0e0;
+    }
+    .MuiBackdrop-root {
+        background-color: rgba(0, 0, 0, 0.4);
+    }
+`;
+
+const DialogHeader = styled("div")`
+    display: flex;
+    align-items: center;
+    border-bottom: 1px solid #e0e0e0;
+    height: 44px;
+    font-size: 14px;
+    font-weight: 500;
+    font-family: Inter;
+`;
+
+const Cross = styled("div")`
+    &:hover {
+        background-color: #f5f5f5;
+    }
+    display: flex;
+    border-radius: 4px;
+    min-height: 24px;
+    min-width: 24px;
+    cursor: pointer;
+    align-items: center;
+    justify-content: center;
+    svg {
+        width: 16px;
+        height: 16px;
+        stroke-width: 1.5;
+    }
+`;
+
+const DialogContent = styled("div")`
+    display: flex;
+    flex-direction: column;
+    gap: 12px;
+    padding: 16px;
+    max-height: 300px;
+    overflow: hidden;
+    overflow-y: auto;
+`;
+
+const TemplatesListWrapper = styled("div")`
+    display: flex;
+    flex-direction: column;
+    gap: 10px;
+`;
+
+const DialogFooter = styled("div")`
+    border-top: 1px solid #e0e0e0;
+    padding: 16px;
+`;
+
+const DialogFooterButton = styled("button")`
+    background-color: #F2994A;
+    border: none;
+    color: #FFF;
+    padding: 12px;
+    border-radius: 4px;
+    cursor: pointer;
+    width: 100%;
+    font-size: 12px;
+    font-family: Inter;
+    &:hover {
+        background-color: #D68742;
+    }
+    &:active {
+        background-color: #D68742;
+    }
+`;
+
+export default TemplatesDialog;
diff --git a/webapp/app.ironcalc.com/frontend/src/components/WelcomeDialog/WelcomeDialog.tsx b/webapp/app.ironcalc.com/frontend/src/components/WelcomeDialog/WelcomeDialog.tsx
index 0efd315..88fcfa6 100644
--- a/webapp/app.ironcalc.com/frontend/src/components/WelcomeDialog/WelcomeDialog.tsx
+++ b/webapp/app.ironcalc.com/frontend/src/components/WelcomeDialog/WelcomeDialog.tsx
@@ -7,12 +7,8 @@ import TemplatesListItem from "./TemplatesListItem";
 function WelcomeDialog(properties: {
   onClose: () => void;
   onSelectTemplate: (templateId: string) => void;
-  showHeader: boolean;
-  showNewSection: boolean;
 }) {
-  const [selectedTemplate, setSelectedTemplate] = useState<string>(
-    properties.showNewSection ? "blank" : "mortgage_calculator",
-  );
+  const [selectedTemplate, setSelectedTemplate] = useState<string>("blank");
 
   const handleClose = () => {
     properties.onClose();
@@ -24,56 +20,37 @@ function WelcomeDialog(properties: {
 
   return (
     <DialogWrapper open={true} onClose={() => {}}>
-      {properties.showHeader !== false ? (
-        <DialogHeader>
-          <DialogHeaderTitleWrapper>
-            <DialogHeaderLogoWrapper>
-              <IronCalcIcon />
-            </DialogHeaderLogoWrapper>
-            <DialogHeaderTitle>Welcome to IronCalc</DialogHeaderTitle>
-            <DialogHeaderTitleSubtitle>
-              Start with a blank workbook or a ready-made template.
-            </DialogHeaderTitleSubtitle>
-          </DialogHeaderTitleWrapper>
-          <Cross
-            onClick={handleClose}
-            title="Close Dialog"
-            tabIndex={0}
-            onKeyDown={(event) => event.key === "Enter" && properties.onClose()}
-          >
-            <X />
-          </Cross>
-        </DialogHeader>
-      ) : (
-        <AlternativeHeader>
-          <span style={{ flexGrow: 2, marginLeft: 12 }}>Choose a template</span>
-          <Cross
-            style={{ marginRight: 12 }}
-            onClick={handleClose}
-            title="Close Dialog"
-            tabIndex={0}
-            onKeyDown={(event) => event.key === "Enter" && properties.onClose()}
-          >
-            <X />
-          </Cross>
-        </AlternativeHeader>
-      )}
+      <DialogHeader>
+        <DialogHeaderTitleWrapper>
+          <DialogHeaderLogoWrapper>
+            <IronCalcIcon />
+          </DialogHeaderLogoWrapper>
+          <DialogHeaderTitle>Welcome to IronCalc</DialogHeaderTitle>
+          <DialogHeaderTitleSubtitle>
+            Start with a blank workbook or a ready-made template.
+          </DialogHeaderTitleSubtitle>
+        </DialogHeaderTitleWrapper>
+        <Cross
+          onClick={handleClose}
+          title="Close Dialog"
+          tabIndex={0}
+          onKeyDown={(event) => event.key === "Enter" && properties.onClose()}
+        >
+          <X />
+        </Cross>
+      </DialogHeader>
       <DialogContent>
-        {properties.showNewSection !== false && (
-          <>
-            <ListTitle>New</ListTitle>
-            <TemplatesListWrapper>
-              <TemplatesListItem
-                title="Blank workbook"
-                description="Create from scratch or upload your own file."
-                icon={<Table />}
-                iconColor="#F2994A"
-                active={selectedTemplate === "blank"}
-                onClick={() => handleTemplateSelect("blank")}
-              />
-            </TemplatesListWrapper>
-          </>
-        )}
+        <ListTitle>New</ListTitle>
+        <TemplatesListWrapper>
+          <TemplatesListItem
+            title="Blank workbook"
+            description="Create from scratch or upload your own file."
+            icon={<Table />}
+            iconColor="#F2994A"
+            active={selectedTemplate === "blank"}
+            onClick={() => handleTemplateSelect("blank")}
+          />
+        </TemplatesListWrapper>
         <ListTitle>Templates</ListTitle>
         <TemplatesListWrapper>
           <TemplatesListItem
@@ -231,14 +208,4 @@ const DialogFooterButton = styled("button")`
   }
 `;
 
-const AlternativeHeader = styled("div")`
-  display: flex;
-  align-items: center;
-  border-bottom: 1px solid #e0e0e0;
-  height: 44px;
-  font-size: 14px;
-  font-weight: 500;
-  font-family: Inter;
-`;
-
 export default WelcomeDialog;