diff --git a/frontend/src/app/main/ui/workspace/tokens/sets.cljs b/frontend/src/app/main/ui/workspace/tokens/sets.cljs
new file mode 100644
index 000000000..01a2c212e
--- /dev/null
+++ b/frontend/src/app/main/ui/workspace/tokens/sets.cljs
@@ -0,0 +1,101 @@
+;; This Source Code Form is subject to the terms of the Mozilla Public
+;; License, v. 2.0. If a copy of the MPL was not distributed with this
+;; file, You can obtain one at http://mozilla.org/MPL/2.0/.
+;;
+;; Copyright (c) KALEIDOS INC
+
+(ns app.main.ui.workspace.tokens.sets
+  (:require-macros [app.main.style :as stl])
+  (:require
+   [app.common.data.macros :as dm]
+   [app.main.store :as st]
+   [app.main.ui.icons :as i]
+   [app.util.dom :as dom]
+   [okulary.core :as l]
+   [potok.v2.core :as ptk]
+   [rumext.v2 :as mf]))
+
+(def active-sets #{#uuid "2858b330-828e-4131-86ed-e4d1c0f4b3e3"
+                   #uuid "d608877b-842a-473b-83ca-b5f8305caf83"})
+
+(def sets-root-order [#uuid "2858b330-828e-4131-86ed-e4d1c0f4b3e3"
+                      #uuid "9c5108aa-bdb4-409c-a3c8-c3dfce2f8bf8"
+                      #uuid "0381446e-1f1d-423f-912c-ab577d61b79b"])
+
+(def sets {#uuid "9c5108aa-bdb4-409c-a3c8-c3dfce2f8bf8" {:type :group
+                                                         :name "Group A"
+                                                         :children [#uuid "d1754e56-3510-493f-8287-5ef3417d4141"
+                                                                    #uuid "d608877b-842a-473b-83ca-b5f8305caf83"]}
+           #uuid "d608877b-842a-473b-83ca-b5f8305caf83" {:type :set
+                                                         :name "Set A / 1"}
+           #uuid "d1754e56-3510-493f-8287-5ef3417d4141" {:type :group
+                                                         :name "Group A / B"
+                                                         :children [#uuid "f608877b-842a-473b-83ca-b5f8305caf83"
+                                                                    #uuid "7cc05389-9391-426e-bc0e-ba5cb8f425eb"]}
+           #uuid "f608877b-842a-473b-83ca-b5f8305caf83" {:type :set
+                                                         :name "Set A / B / 1"}
+           #uuid "7cc05389-9391-426e-bc0e-ba5cb8f425eb" {:type :set
+                                                         :name "Set A / B / 2"}
+           #uuid "2858b330-828e-4131-86ed-e4d1c0f4b3e3" {:type :set
+                                                         :name "Set Root 1"}
+           #uuid "0381446e-1f1d-423f-912c-ab577d61b79b" {:type :set
+                                                         :name "Set Root 2"}})
+
+(def ^:private chevron-icon
+  (i/icon-xref :arrow (stl/css :chevron-icon)))
+
+(defn set-selected-set
+  [set-id]
+  (dm/assert! (uuid? set-id))
+  (ptk/reify ::set-selected-set
+    ptk/UpdateEvent
+    (update [_ state]
+      (assoc state :selected-set-id set-id))))
+
+(mf/defc sets-tree
+  [{:keys [selected-set-id set-id]}]
+  (let [set (get sets set-id)]
+    (when set
+      (let [{:keys [type name children]} set
+            visible? (mf/use-state (contains? active-sets set-id))
+            collapsed? (mf/use-state false)
+            icon (if (= type :set) i/document i/group)
+            selected? (mf/use-state (= set-id selected-set-id))
+
+            on-click
+            (mf/use-fn
+             (mf/deps type set-id)
+             (fn [event]
+               (dom/stop-propagation event)
+               (st/emit! (set-selected-set set-id))))]
+        [:div {:class (stl/css :set-item-container)
+               :on-click on-click}
+         [:div {:class (stl/css-case :set-item-group (= type :group)
+                                     :set-item-set  (= type :set)
+                                     :selected-set  (and (= type :set) @selected?))}
+          (when (= type :group)
+            [:span {:class (stl/css-case
+                            :collapsabled-icon true
+                            :collapsed @collapsed?)
+                    :on-click #(when (= type :group) (swap! collapsed? not))}
+             chevron-icon])
+          [:span {:class (stl/css :icon)} icon]
+          [:div {:class (stl/css :set-name)} name]
+          (when (= type :set)
+            [:span {:class (stl/css :action-btn)
+                    :on-click #(swap! visible? not)}
+             (if @visible?
+               i/shown
+               i/hide)])]
+         (when (and children (not @collapsed?))
+           [:div {:class (stl/css :set-children)}
+            (for [child-id children]
+              [:& sets-tree {:key child-id :set-id child-id :selected-set-id selected-set-id}])])]))))
+
+(mf/defc sets-list
+  [{:keys [selected-set-id]}]
+  [:ul {:class (stl/css :sets-list)}
+   (for [set-id sets-root-order]
+     [:& sets-tree {:key set-id
+                    :set-id set-id
+                    :selected-set-id selected-set-id}])])
diff --git a/frontend/src/app/main/ui/workspace/tokens/sets.scss b/frontend/src/app/main/ui/workspace/tokens/sets.scss
new file mode 100644
index 000000000..5c32bf199
--- /dev/null
+++ b/frontend/src/app/main/ui/workspace/tokens/sets.scss
@@ -0,0 +1,101 @@
+// This Source Code Form is subject to the terms of the Mozilla Public
+// License, v. 2.0. If a copy of the MPL was not distributed with this
+// file, You can obtain one at http://mozilla.org/MPL/2.0/.
+//
+// Copyright (c) KALEIDOS INC
+
+@import "refactor/common-refactor.scss";
+
+.sets-list {
+  width: 100%;
+  margin-bottom: $s-12;
+  overflow-y: auto;
+}
+
+.set-item-container {
+  width: 100%;
+  cursor: pointer;
+  color: var(--layer-row-foreground-color);
+  padding-left: $s-20;
+}
+
+.set-item-set,
+.set-item-group {
+  @include bodySmallTypography;
+  display: flex;
+  align-items: center;
+  min-height: $s-32;
+  width: 100%;
+  cursor: pointer;
+  color: var(--layer-row-foreground-color);
+  .set-name {
+    @include textEllipsis;
+    flex-grow: 1;
+    padding-left: $s-2;
+  }
+
+  .icon {
+    display: flex;
+    align-items: center;
+    width: $s-20;
+    height: $s-20;
+    padding-right: $s-4;
+
+    svg {
+      height: $s-20;
+      width: $s-20;
+      color: white;
+      fill: none;
+      stroke: var(--icon-foreground);
+    }
+  }
+}
+
+.set-item-set {
+  &:hover {
+    background-color: var(--layer-row-background-color-hover);
+    color: var(--layer-row-foreground-color-hover);
+    box-shadow: -100px 0 0 0 var(--layer-row-background-color-hover);
+  }
+}
+
+.selected-set {
+  background-color: var(--layer-row-background-color-selected);
+  color: var(--layer-row-foreground-color-selected);
+  box-shadow: -100px 0 0 0 var(--layer-row-background-color-selected);
+}
+
+.action-btn {
+  @extend .button-tertiary;
+  height: $s-28;
+  width: $s-28;
+  svg {
+    @extend .button-icon;
+    width: 12px;
+    height: 12px;
+  }
+}
+
+.collapsabled-icon {
+  @include buttonStyle;
+  @include flexCenter;
+  height: $s-24;
+  border-radius: $br-8;
+
+  --chevron-icon-rotation: 90deg;
+
+  &.collapsed {
+    --chevron-icon-rotation: 0deg;
+  }
+
+  &:hover {
+    --chevron-icon-color: var(--title-foreground-color-hover);
+  }
+}
+
+.chevron-icon {
+  @extend .button-icon-small;
+  margin-right: $s-6;
+  transform: rotate(var(--chevron-icon-rotation));
+  stroke: var(--icon-foreground);
+}
diff --git a/frontend/src/app/main/ui/workspace/tokens/sidebar.cljs b/frontend/src/app/main/ui/workspace/tokens/sidebar.cljs
index 7cab3ea9a..7729f41df 100644
--- a/frontend/src/app/main/ui/workspace/tokens/sidebar.cljs
+++ b/frontend/src/app/main/ui/workspace/tokens/sidebar.cljs
@@ -12,11 +12,13 @@
    [app.main.data.tokens :as dt]
    [app.main.refs :as refs]
    [app.main.store :as st]
+   [app.main.ui.components.title-bar :refer [title-bar]]
    [app.main.ui.icons :as i]
    [app.main.ui.workspace.sidebar.assets.common :as cmm]
    [app.main.ui.workspace.tokens.changes :as wtch]
    [app.main.ui.workspace.tokens.context-menu :refer [token-context-menu]]
    [app.main.ui.workspace.tokens.core :as wtc]
+   [app.main.ui.workspace.tokens.sets :refer [sets-list]]
    [app.main.ui.workspace.tokens.style-dictionary :as sd]
    [app.main.ui.workspace.tokens.token :as wtt]
    [app.main.ui.workspace.tokens.token-types :as wtty]
@@ -32,6 +34,9 @@
 (def ^:private download-icon
   (i/icon-xref :download (stl/css :download-icon)))
 
+(def selected-set-id
+  (l/derived :selected-set-id st/state))
+
 (mf/defc token-pill
   {::mf/wrap-props false}
   [{:keys [on-click token highlighted? on-context-menu]}]
@@ -166,13 +171,35 @@
                              :tokens tokens
                              :token-type-props token-type-props}])]]))
 
+(mf/defc sets-sidebar
+  []
+  (let [selected-set-id (mf/deref selected-set-id)
+        open? (mf/use-state true)]
+    [:div {:class (stl/css :sets-sidebar)}
+     [:div {:class (stl/css :sidebar-header)}
+      [:& title-bar {:collapsable true
+                     :collapsed (not @open?)
+                     :all-clickable true
+                     :title "SETS"
+                     :on-collapsed #(swap! open? not)}]
+      [:button {:class (stl/css :add-set)
+                :on-click #(println "Add Set")}
+       i/add]]
+     (when @open?
+       [:& sets-list {:selected-set-id selected-set-id}])]))
+
 (mf/defc tokens-sidebar-tab
   {::mf/wrap [mf/memo]
    ::mf/wrap-props false}
   [_props]
-  [:div {:class (stl/css :sidebar-tab-wrapper)}
-   [:& tokens-explorer]
-   [:button {:class (stl/css :download-json-button)
-             :on-click wtc/download-tokens-as-json}
-    download-icon
-    "Export JSON"]])
+  (let [show-sets-section? false] ;; temporarily added this variable to see/hide the sets section till we have it working end to end
+    [:div {:class (stl/css :sidebar-tab-wrapper)}
+     (when show-sets-section?
+       [:div {:class (stl/css :sets-section-wrapper)}
+        [:& sets-sidebar]])
+     [:div {:class (stl/css :tokens-section-wrapper)}
+      [:& tokens-explorer]]
+     [:button {:class (stl/css :download-json-button)
+               :on-click wtc/download-tokens-as-json}
+      download-icon
+      "Export JSON"]]))
diff --git a/frontend/src/app/main/ui/workspace/tokens/sidebar.scss b/frontend/src/app/main/ui/workspace/tokens/sidebar.scss
index 67ff95ee0..e90b12d3c 100644
--- a/frontend/src/app/main/ui/workspace/tokens/sidebar.scss
+++ b/frontend/src/app/main/ui/workspace/tokens/sidebar.scss
@@ -5,11 +5,57 @@
 // Copyright (c) KALEIDOS INC
 
 @import "refactor/common-refactor.scss";
-
 @import "./common.scss";
 
 .sidebar-tab-wrapper {
-  padding: $s-12;
+  display: flex;
+  flex-direction: column;
+  height: 100%;
+  overflow: hidden;
+}
+
+.sets-section-wrapper {
+  display: flex;
+  flex-direction: column;
+  margin-bottom: $s-8;
+}
+
+.sets-sidebar {
+  position: relative;
+}
+
+.sidebar-header {
+  display: flex;
+  align-items: center;
+  justify-content: space-between;
+  margin-left: $s-8;
+  padding-top: $s-12;
+  color: var(--layer-row-foreground-color);
+}
+
+.add-set {
+  @extend .button-tertiary;
+  height: $s-32;
+  width: $s-28;
+  padding: 0;
+  margin-right: $s-12;
+  svg {
+    @extend .button-icon;
+    stroke: var(--icon-foreground);
+    transform: rotate(90deg);
+  }
+}
+
+.tokens-section-wrapper {
+  flex: 1;
+  padding-top: $s-12;
+  padding-left: $s-12;
+  overflow-y: auto;
+}
+
+// TODO Remove once sets are available to public
+.sets-section-wrapper + .tokens-section-wrapper {
+  padding-top: 0;
 }
 
 .token-pills-wrapper {