diff --git a/src/services/package-manager/__tests__/PackageManagerIntegration.test.ts b/src/services/package-manager/__tests__/PackageManagerIntegration.test.ts
index a498e6974b..a11bf303f3 100644
--- a/src/services/package-manager/__tests__/PackageManagerIntegration.test.ts
+++ b/src/services/package-manager/__tests__/PackageManagerIntegration.test.ts
@@ -101,9 +101,10 @@ describe("Package Manager Integration", () => {
 			expect(dataValidator).toBeDefined()
 			expect(dataValidator?.metadata?.description).toContain("validating data quality")
 
-			// Verify only matching subcomponents are included
-			expect(filteredItems[0].items?.length).toBe(1)
-			expect(filteredItems[0].items?.[0].metadata?.name).toBe("Data Validator")
+			// Verify only matching subcomponents have matchInfo.matched = true
+			const matchingSubcomponents = filteredItems[0].items?.filter((item) => item.matchInfo?.matched) || []
+			expect(matchingSubcomponents.length).toBe(1)
+			expect(matchingSubcomponents[0].metadata?.name).toBe("Data Validator")
 		})
 
 		it("should handle partial matches", async () => {
@@ -161,8 +162,11 @@ describe("Package Manager Integration", () => {
 			const packageWithServer = filteredItems.find((item) => item.type === "package")
 			expect(packageWithServer).toBeDefined()
 			expect(packageWithServer?.name).toBe("Data Platform Package")
-			expect(packageWithServer?.items?.length).toBe(1)
-			expect(packageWithServer?.items?.[0].metadata?.name).toBe("Data Validator")
+
+			// Count how many subcomponents have matchInfo.matched = true
+			const matchingSubcomponents = packageWithServer?.items?.filter((item) => item.matchInfo?.matched) || []
+			expect(matchingSubcomponents.length).toBe(1)
+			expect(matchingSubcomponents[0].metadata?.name).toBe("Data Validator")
 
 			// Verify excluded items
 			const allItems = [...templateItems]
diff --git a/src/services/package-manager/__tests__/PackageManagerRealData.test.ts b/src/services/package-manager/__tests__/PackageManagerRealData.test.ts
index c445c91305..46561aefc7 100644
--- a/src/services/package-manager/__tests__/PackageManagerRealData.test.ts
+++ b/src/services/package-manager/__tests__/PackageManagerRealData.test.ts
@@ -38,8 +38,11 @@ describe("Package Manager with Real Data", () => {
 				// Should find Data Platform Package containing Data Validator
 				expect(filteredItems.length).toBe(1)
 				expect(filteredItems[0].name).toBe("Data Platform Package")
-				expect(filteredItems[0].items?.length).toBe(1)
-				expect(filteredItems[0].items?.[0].metadata?.name).toBe("Data Validator")
+
+				// Count how many subcomponents have matchInfo.matched = true
+				const matchingSubcomponents = filteredItems[0].items?.filter((item) => item.matchInfo?.matched) || []
+				expect(matchingSubcomponents.length).toBe(1)
+				expect(matchingSubcomponents[0].metadata?.name).toBe("Data Validator")
 
 				// Verify excluded items
 				const excludedItems = templateItems.filter(
@@ -49,22 +52,11 @@ describe("Package Manager with Real Data", () => {
 				expect(excludedItems).toContainEqual(expect.objectContaining({ name: "Data Engineer" }))
 				expect(excludedItems).toContainEqual(expect.objectContaining({ name: "Example MCP Server" }))
 
-				// Verify excluded subcomponents
-				const excludedSubcomponents = templateItems
-					.find((item) => item.name === "Data Platform Package")
-					?.items?.filter(
-						(subItem) =>
-							!filteredItems[0].items?.some(
-								(filtered) => filtered.metadata?.name === subItem.metadata?.name,
-							),
-					)
-				expect(excludedSubcomponents).toContainEqual(
-					expect.objectContaining({
-						metadata: expect.objectContaining({
-							name: "Data Platform Administrator",
-						}),
-					}),
-				)
+				// Verify non-matching subcomponents
+				const nonMatchingSubcomponents =
+					filteredItems[0].items?.filter((item) => !item.matchInfo?.matched) || []
+				expect(nonMatchingSubcomponents.length).toBe(1)
+				expect(nonMatchingSubcomponents[0].metadata?.name).toBe("Data Platform Administrator")
 			}
 		})
 
@@ -114,8 +106,11 @@ describe("Package Manager with Real Data", () => {
 			const packageWithServer = filteredItems.find((item) => item.type === "package")
 			expect(packageWithServer).toBeDefined()
 			expect(packageWithServer?.name).toBe("Data Platform Package")
-			expect(packageWithServer?.items?.length).toBe(1)
-			expect(packageWithServer?.items?.[0].metadata?.name).toBe("Data Validator")
+
+			// Count how many subcomponents have matchInfo.matched = true
+			const matchingSubcomponents = packageWithServer?.items?.filter((item) => item.matchInfo?.matched) || []
+			expect(matchingSubcomponents.length).toBe(1)
+			expect(matchingSubcomponents[0].metadata?.name).toBe("Data Validator")
 
 			// Verify excluded items (either wrong type or no "data" match)
 			const excludedItems = templateItems.filter(
@@ -128,23 +123,12 @@ describe("Package Manager with Real Data", () => {
 			// Data Engineer - has "data" but wrong type
 			expect(excludedItems).toContainEqual(expect.objectContaining({ name: "Data Engineer" }))
 
-			// Verify excluded subcomponents (either wrong type or no "data" match)
-			const excludedSubcomponents = templateItems
-				.find((item) => item.name === "Data Platform Package")
-				?.items?.filter(
-					(subItem) =>
-						!filteredItems
-							.find((item) => item.name === "Data Platform Package")
-							?.items?.some((filtered) => filtered.metadata?.name === subItem.metadata?.name),
-				)
-			// Data Platform Administrator - wrong type
-			expect(excludedSubcomponents).toContainEqual(
-				expect.objectContaining({
-					metadata: expect.objectContaining({
-						name: "Data Platform Administrator",
-					}),
-				}),
-			)
+			// Verify non-matching subcomponents (either wrong type or no "data" match)
+			const packageWithServerItem = filteredItems.find((item) => item.type === "package")
+			const nonMatchingSubcomponents =
+				packageWithServerItem?.items?.filter((item) => !item.matchInfo?.matched) || []
+			expect(nonMatchingSubcomponents.length).toBe(1)
+			expect(nonMatchingSubcomponents[0].metadata?.name).toBe("Data Platform Administrator")
 		})
 
 		it("should handle specific search with type filtering", () => {
@@ -157,8 +141,11 @@ describe("Package Manager with Real Data", () => {
 			// Should only find Data Platform Package containing Data Validator
 			expect(filteredItems.length).toBe(1)
 			expect(filteredItems[0].name).toBe("Data Platform Package")
-			expect(filteredItems[0].items?.length).toBe(1)
-			expect(filteredItems[0].items?.[0].metadata?.name).toBe("Data Validator")
+
+			// Count how many subcomponents have matchInfo.matched = true
+			const matchingSubcomponents = filteredItems[0].items?.filter((item) => item.matchInfo?.matched) || []
+			expect(matchingSubcomponents.length).toBe(1)
+			expect(matchingSubcomponents[0].metadata?.name).toBe("Data Validator")
 
 			// Verify excluded items
 			const excludedItems = templateItems.filter(
@@ -186,22 +173,18 @@ describe("Package Manager with Real Data", () => {
 		it("should exclude non-matching types", () => {
 			const filteredItems = manager.filterItems(templateItems, { type: "mode" })
 
-			// Should exclude all non-mode items
-			const excludedItems = templateItems.filter(
-				(item) => !filteredItems.some((filtered) => filtered.name === item.name),
-			)
-			expect(excludedItems).toContainEqual(
-				expect.objectContaining({
-					name: "Data Processor",
-					type: "mcp server",
-				}),
-			)
-			expect(excludedItems).toContainEqual(
-				expect.objectContaining({
-					name: "Data Platform Package",
-					type: "package",
-				}),
-			)
+			// Should include only mode items
+			const modeItems = filteredItems.filter((item) => item.type === "mode")
+			expect(modeItems.length).toBeGreaterThan(0)
+			// Verify that the filtered results include items of type "mode"
+			expect(modeItems.length).toBeGreaterThan(0)
+
+			// Verify specific items are not in the filtered items
+			const filteredItemNames = filteredItems.map((item) => item.name)
+			// Verify that items of type "mcp server" are not included
+			expect(filteredItemNames).not.toContain("Data Processor")
+			expect(filteredItemNames).not.toContain("Example MCP Server")
+			expect(filteredItemNames).not.toContain("File Analyzer MCP Server")
 		})
 	})
 })
diff --git a/webview-ui/src/components/package-manager/components/ExpandableSection.tsx b/webview-ui/src/components/package-manager/components/ExpandableSection.tsx
index 571de2d4df..7d9fa38b49 100644
--- a/webview-ui/src/components/package-manager/components/ExpandableSection.tsx
+++ b/webview-ui/src/components/package-manager/components/ExpandableSection.tsx
@@ -6,6 +6,7 @@ interface ExpandableSectionProps {
 	children: React.ReactNode
 	className?: string
 	defaultExpanded?: boolean
+	badge?: string
 }
 
 export const ExpandableSection: React.FC<ExpandableSectionProps> = ({
@@ -13,6 +14,7 @@ export const ExpandableSection: React.FC<ExpandableSectionProps> = ({
 	children,
 	className,
 	defaultExpanded = false,
+	badge,
 }) => {
 	const [isExpanded, setIsExpanded] = useState(defaultExpanded)
 
@@ -23,14 +25,24 @@ export const ExpandableSection: React.FC<ExpandableSectionProps> = ({
 				onClick={() => setIsExpanded(!isExpanded)}
 				aria-expanded={isExpanded}
 				aria-controls="details-content">
-				<span className="font-medium">{title}</span>
-				<span
-					className={cn(
-						"codicon",
-						isExpanded ? "codicon-chevron-down" : "codicon-chevron-right",
-						"transition-transform duration-200",
+				<span className="font-medium flex items-center">
+					<span className="codicon codicon-list-unordered mr-1"></span>
+					{title}
+				</span>
+				<div className="flex items-center">
+					{badge && (
+						<span className="mr-2 text-xs bg-vscode-badge-background text-vscode-badge-foreground px-1 py-0.5 rounded">
+							{badge}
+						</span>
 					)}
-				/>
+					<span
+						className={cn(
+							"codicon",
+							isExpanded ? "codicon-chevron-down" : "codicon-chevron-right",
+							"transition-transform duration-200",
+						)}
+					/>
+				</div>
 			</button>
 			<div
 				id="details-content"
@@ -40,7 +52,7 @@ export const ExpandableSection: React.FC<ExpandableSectionProps> = ({
 				)}
 				role="region"
 				aria-labelledby="details-button">
-				<div className="py-2">{children}</div>
+				<div className="py-2 px-1 bg-vscode-panel-background rounded-sm">{children}</div>
 			</div>
 		</div>
 	)
diff --git a/webview-ui/src/components/package-manager/components/PackageManagerItemCard.tsx b/webview-ui/src/components/package-manager/components/PackageManagerItemCard.tsx
index 4bb066f886..0e18e79f6a 100644
--- a/webview-ui/src/components/package-manager/components/PackageManagerItemCard.tsx
+++ b/webview-ui/src/components/package-manager/components/PackageManagerItemCard.tsx
@@ -150,10 +150,43 @@ export const PackageManagerItemCard: React.FC<PackageManagerItemCardProps> = ({
 			</div>
 
 			{groupedItems && (
-				<ExpandableSection title="Details">
-					{Object.entries(groupedItems).map(([type, group]) => (
-						<TypeGroup key={type} type={type} items={group.items} />
-					))}
+				<ExpandableSection
+					title="Component Details"
+					badge={
+						filters.search
+							? (() => {
+									const matchCount =
+										item.items?.filter(
+											(subItem) =>
+												(subItem.metadata?.name || "")
+													.toLowerCase()
+													.includes(filters.search.toLowerCase()) ||
+												(subItem.metadata?.description || "")
+													.toLowerCase()
+													.includes(filters.search.toLowerCase()),
+										).length || 0
+									return matchCount > 0
+										? `${matchCount} match${matchCount !== 1 ? "es" : ""}`
+										: undefined
+								})()
+							: undefined
+					}
+					defaultExpanded={
+						!!filters.search &&
+						(item.items?.some(
+							(subItem) =>
+								(subItem.metadata?.name || "").toLowerCase().includes(filters.search.toLowerCase()) ||
+								(subItem.metadata?.description || "")
+									.toLowerCase()
+									.includes(filters.search.toLowerCase()),
+						) ||
+							false)
+					}>
+					<div className="space-y-4">
+						{Object.entries(groupedItems).map(([type, group]) => (
+							<TypeGroup key={type} type={type} items={group.items} searchTerm={filters.search} />
+						))}
+					</div>
 				</ExpandableSection>
 			)}
 		</div>
diff --git a/webview-ui/src/components/package-manager/components/TypeGroup.tsx b/webview-ui/src/components/package-manager/components/TypeGroup.tsx
index a8bd3e2d9e..33a4cde7f6 100644
--- a/webview-ui/src/components/package-manager/components/TypeGroup.tsx
+++ b/webview-ui/src/components/package-manager/components/TypeGroup.tsx
@@ -1,6 +1,5 @@
 import React from "react"
 import { cn } from "@/lib/utils"
-import { formatItemText } from "../utils/grouping"
 
 interface TypeGroupProps {
 	type: string
@@ -11,9 +10,10 @@ interface TypeGroupProps {
 		path?: string
 	}>
 	className?: string
+	searchTerm?: string
 }
 
-export const TypeGroup: React.FC<TypeGroupProps> = ({ type, items, className }) => {
+export const TypeGroup: React.FC<TypeGroupProps> = ({ type, items, className, searchTerm }) => {
 	const getTypeLabel = (type: string) => {
 		switch (type) {
 			case "mode":
@@ -33,15 +33,41 @@ export const TypeGroup: React.FC<TypeGroupProps> = ({ type, items, className })
 		return null
 	}
 
+	// Check if an item matches the search term
+	const itemMatchesSearch = (item: { name: string; description?: string }) => {
+		if (!searchTerm) return false
+		const term = searchTerm.toLowerCase()
+		return item.name.toLowerCase().includes(term) || (item.description || "").toLowerCase().includes(term)
+	}
+
 	return (
 		<div className={cn("mb-4", className)}>
 			<h4 className="text-sm font-medium text-vscode-foreground mb-2">{getTypeLabel(type)}</h4>
 			<ol className="list-decimal list-inside space-y-1">
-				{items.map((item, index) => (
-					<li key={`${item.path || index}`} className="text-sm text-vscode-foreground pl-1" title={item.path}>
-						<span className="text-vscode-descriptionForeground">{formatItemText(item)}</span>
-					</li>
-				))}
+				{items.map((item, index) => {
+					const matches = itemMatchesSearch(item)
+					return (
+						<li
+							key={`${item.path || index}`}
+							className={cn(
+								"text-sm pl-1",
+								matches ? "text-vscode-foreground font-medium" : "text-vscode-foreground",
+							)}
+							title={item.path}>
+							<span className={cn("font-medium", matches ? "text-vscode-textLink" : "")}>
+								{item.name}
+							</span>
+							{item.description && (
+								<span className="text-vscode-descriptionForeground"> - {item.description}</span>
+							)}
+							{matches && (
+								<span className="ml-2 text-xs bg-vscode-badge-background text-vscode-badge-foreground px-1 py-0.5 rounded">
+									match
+								</span>
+							)}
+						</li>
+					)
+				})}
 			</ol>
 		</div>
 	)
diff --git a/webview-ui/src/components/package-manager/selectors.ts b/webview-ui/src/components/package-manager/selectors.ts
index 13ce2aaf86..dc0aa8eed0 100644
--- a/webview-ui/src/components/package-manager/selectors.ts
+++ b/webview-ui/src/components/package-manager/selectors.ts
@@ -29,12 +29,23 @@ export const filterItems = (items: PackageManagerItem[], filters: Filters): Pack
 		// Search filter
 		if (filters.search) {
 			const searchTerm = filters.search.toLowerCase()
-			const matchesSearch =
+
+			// Check if the main item matches
+			const mainItemMatches =
 				item.name.toLowerCase().includes(searchTerm) ||
 				(item.description || "").toLowerCase().includes(searchTerm) ||
 				(item.author || "").toLowerCase().includes(searchTerm)
 
-			if (!matchesSearch) {
+			// Check if any subcomponents match
+			const subcomponentMatches =
+				item.items?.some(
+					(subItem) =>
+						(subItem.metadata?.name || "").toLowerCase().includes(searchTerm) ||
+						(subItem.metadata?.description || "").toLowerCase().includes(searchTerm),
+				) || false
+
+			// Return false if neither the main item nor any subcomponents match
+			if (!mainItemMatches && !subcomponentMatches) {
 				return false
 			}
 		}
diff --git a/webview-ui/src/components/package-manager/utils/grouping.ts b/webview-ui/src/components/package-manager/utils/grouping.ts
index cd8cf0219d..11c8b641f5 100644
--- a/webview-ui/src/components/package-manager/utils/grouping.ts
+++ b/webview-ui/src/components/package-manager/utils/grouping.ts
@@ -54,7 +54,15 @@ export function formatItemText(item: { name: string; description?: string }): st
 	if (!item.description) {
 		return item.name
 	}
-	return `${item.name} - ${item.description}`
+
+	// Truncate description if it's too long
+	const maxDescriptionLength = 100
+	const description =
+		item.description.length > maxDescriptionLength
+			? `${item.description.substring(0, maxDescriptionLength)}...`
+			: item.description
+
+	return `${item.name} - ${description}`
 }
 
 /**