diff --git a/packages/fx-core/resource/package.nls.json b/packages/fx-core/resource/package.nls.json
index 2ef6152de0..94788be91f 100644
--- a/packages/fx-core/resource/package.nls.json
+++ b/packages/fx-core/resource/package.nls.json
@@ -321,7 +321,8 @@
   "core.createProjectQuestion.projectType.copilotHelp.label": "Don't know how to start? Use GitHub Copilot Chat",
   "core.createProjectQuestion.projectType.copilotHelp.detail": "Chat with GitHub Copilot to get started on your Teams app and agent",
   "core.createProjectQuestion.projectType.copilotGroup.title": "Use GitHub Copilot",
-  "core.createProjectQuestion.projectType.createGroup.title": "Create",
+  "core.createProjectQuestion.projectType.createGroup.aiAgent": "AI Agent",
+  "core.createProjectQuestion.projectType.createGroup.m365Apps": "Apps for Microsoft 365",
   "core.createProjectQuestion.projectType.declarativeAgent.label": "Declarative Agent",
   "core.createProjectQuestion.projectType.declarativeAgent.detail": "Create your own agent by declaring instructions, actions, & knowledge to suit your needs.",
   "core.createProjectQuestion.title": "New Project",
@@ -399,10 +400,10 @@
   "core.createProjectQuestion.declarativeCopilot.placeholder": "Add API plugin to your declarative agent",
   "core.createProjectQuestion.createApiPlugin.title": "Create API Plugin",
   "core.createProjectQuestion.addApiPlugin.title": "Add API Plugin",
-  "core.createProjectQuestion.addApiPlugin.placeholder": "Select how to add plugin",
+  "core.createProjectQuestion.addApiPlugin.placeholder": "Select how to add action",
   "core.createProjectQuestion.noPlugin.label": "No plugin",
   "core.createProjectQuestion.noPlugin.detail": "Create declarative agent only",
-  "core.createProjectQuestion.addPlugin.label": "Add plugin",
+  "core.createProjectQuestion.addPlugin.label": "Add action",
   "core.createProjectQuestion.addPlugin.detail": "Create declarative agent with API plugin",
   "core.createProjectQuestion.addExistingPlugin.pluginManifest.title": "Import Manifest File",
   "core.createProjectQuestion.addExistingPlugin.apiSpec.title": "Import OpenAPI Description Document",
diff --git a/packages/fx-core/src/question/constants.ts b/packages/fx-core/src/question/constants.ts
index 5ede1545b6..3f13bcc5da 100644
--- a/packages/fx-core/src/question/constants.ts
+++ b/packages/fx-core/src/question/constants.ts
@@ -108,6 +108,11 @@ export enum QuestionNames {
   PluginOpenApiSpecFilePath = "plugin-opeanapi-spec-path",
 }
 
+export enum ProjectTypeGroup {
+  AIAgent = "AI Agent",
+  M365Apps = "Apps for Microsoft 365",
+}
+
 export const AppNamePattern =
   '^(?=(.*[\\da-zA-Z]){2})[a-zA-Z][^"<>:\\?/*&|\u0000-\u001F]*[^"\\s.<>:\\?/*&|\u0000-\u001F]$';
 
@@ -182,10 +187,13 @@ export class ScratchOptions {
 }
 
 export class ProjectTypeOptions {
-  static getCreateGroupName(): string | undefined {
-    return featureFlagManager.getBooleanValue(FeatureFlags.ChatParticipantUIEntries)
-      ? getLocalizedString("core.createProjectQuestion.projectType.createGroup.title")
-      : undefined;
+  static getCreateGroupName(group: ProjectTypeGroup): string | undefined {
+    switch (group) {
+      case ProjectTypeGroup.AIAgent:
+        return getLocalizedString("core.createProjectQuestion.projectType.createGroup.aiAgent");
+      case ProjectTypeGroup.M365Apps:
+        return getLocalizedString("core.createProjectQuestion.projectType.createGroup.m365Apps");
+    }
   }
   static tab(platform?: Platform): OptionItem {
     return {
@@ -194,7 +202,7 @@ export class ProjectTypeOptions {
         "core.TabOption.label"
       )}`,
       detail: getLocalizedString("core.createProjectQuestion.projectType.tab.detail"),
-      groupName: ProjectTypeOptions.getCreateGroupName(),
+      groupName: ProjectTypeOptions.getCreateGroupName(ProjectTypeGroup.M365Apps),
     };
   }
 
@@ -205,7 +213,7 @@ export class ProjectTypeOptions {
         "core.createProjectQuestion.projectType.bot.label"
       )}`,
       detail: getLocalizedString("core.createProjectQuestion.projectType.bot.detail"),
-      groupName: ProjectTypeOptions.getCreateGroupName(),
+      groupName: ProjectTypeOptions.getCreateGroupName(ProjectTypeGroup.M365Apps),
     };
   }
 
@@ -218,7 +226,7 @@ export class ProjectTypeOptions {
       detail: getLocalizedString(
         "core.createProjectQuestion.projectType.messageExtension.copilotEnabled.detail"
       ),
-      groupName: ProjectTypeOptions.getCreateGroupName(),
+      groupName: ProjectTypeOptions.getCreateGroupName(ProjectTypeGroup.M365Apps),
     };
   }
 
@@ -229,7 +237,7 @@ export class ProjectTypeOptions {
         "core.createProjectQuestion.projectType.outlookAddin.label"
       )}`,
       detail: getLocalizedString("core.createProjectQuestion.projectType.outlookAddin.detail"),
-      groupName: ProjectTypeOptions.getCreateGroupName(),
+      groupName: ProjectTypeOptions.getCreateGroupName(ProjectTypeGroup.M365Apps),
     };
   }
 
@@ -240,7 +248,7 @@ export class ProjectTypeOptions {
         "core.createProjectQuestion.projectType.officeAddin.label"
       )}`,
       detail: getLocalizedString("core.createProjectQuestion.projectType.officeAddin.detail"),
-      groupName: ProjectTypeOptions.getCreateGroupName(),
+      groupName: ProjectTypeOptions.getCreateGroupName(ProjectTypeGroup.M365Apps),
     };
   }
 
@@ -251,7 +259,7 @@ export class ProjectTypeOptions {
         "core.createProjectQuestion.projectType.officeAddin.label"
       )}`,
       detail: getLocalizedString("core.createProjectQuestion.projectType.officeAddin.detail"),
-      groupName: ProjectTypeOptions.getCreateGroupName(),
+      groupName: ProjectTypeOptions.getCreateGroupName(ProjectTypeGroup.M365Apps),
     };
   }
 
@@ -270,7 +278,7 @@ export class ProjectTypeOptions {
         "core.createProjectQuestion.projectType.declarativeAgent.label"
       )}`,
       detail: getLocalizedString("core.createProjectQuestion.projectType.declarativeAgent.detail"),
-      groupName: ProjectTypeOptions.getCreateGroupName(),
+      groupName: ProjectTypeOptions.getCreateGroupName(ProjectTypeGroup.AIAgent),
     };
   }
 
@@ -281,7 +289,7 @@ export class ProjectTypeOptions {
         platform === Platform.VSCode ? "$(teamsfx-custom-copilot) " : ""
       }${getLocalizedString("core.createProjectQuestion.projectType.customCopilot.label")}`,
       detail: getLocalizedString("core.createProjectQuestion.projectType.customCopilot.detail"),
-      groupName: ProjectTypeOptions.getCreateGroupName(),
+      groupName: ProjectTypeOptions.getCreateGroupName(ProjectTypeGroup.AIAgent),
     };
   }
 
diff --git a/packages/fx-core/tests/question/create.test.ts b/packages/fx-core/tests/question/create.test.ts
index 6ab17d7507..0ce58a522f 100644
--- a/packages/fx-core/tests/question/create.test.ts
+++ b/packages/fx-core/tests/question/create.test.ts
@@ -162,7 +162,7 @@ describe("scaffold question", () => {
           const select = question as SingleSelectQuestion;
           const options = await select.dynamicOptions!(inputs);
           assert.isTrue(options.length === 6);
-          assert.isUndefined((options as OptionItem[])[0].groupName);
+          assert.isNotEmpty((options as OptionItem[])[0].groupName);
           return ok({ type: "success", result: ProjectTypeOptions.bot().id });
         } else if (question.name === QuestionNames.Capabilities) {
           const select = question as SingleSelectQuestion;
@@ -3594,7 +3594,7 @@ describe("scaffold question", () => {
           const options = await select.dynamicOptions!(inputs);
           assert.isTrue(options.length === 7);
           assert.equal(
-            getLocalizedString("core.createProjectQuestion.projectType.createGroup.title"),
+            getLocalizedString("core.createProjectQuestion.projectType.createGroup.aiAgent"),
             (options as OptionItem[])[0].groupName
           );
           return ok({ type: "success", result: ProjectTypeOptions.bot().id });
diff --git a/packages/vscode-extension/package.nls.json b/packages/vscode-extension/package.nls.json
index f411cabde8..1b1f636dcd 100644
--- a/packages/vscode-extension/package.nls.json
+++ b/packages/vscode-extension/package.nls.json
@@ -169,9 +169,9 @@
   "teamstoolkit.commandsTreeViewProvider.guideTitle": "View How-to Guides",
   "teamstoolkit.commandsTreeViewProvider.manageCollaboratorTitle": "Manage Collaborator",
   "teamstoolkit.commandsTreeViewProvider.manageCollaboratorDescription": "Manage M365 Teams App (with Microsoft Entra app) Collaborators",
-  "teamstoolkit.commandsTreeViewProvider.addPluginTitle": "Add Plugin",
-  "teamstoolkit.commandsTreeViewProvider.addPluginDescription": "Add plugin in declarative agent",
-  "teamstoolkit.commandsTreeViewProvider.addPlugin.running": "Adding plugin...",
+  "teamstoolkit.commandsTreeViewProvider.addPluginTitle": "Add Action",
+  "teamstoolkit.commandsTreeViewProvider.addPluginDescription": "Add action in declarative agent",
+  "teamstoolkit.commandsTreeViewProvider.addPlugin.running": "Adding action...",
   "teamstoolkit.commandsTreeViewProvider.addWebpartTitle": "Add SPFx Web Part",
   "teamstoolkit.commandsTreeViewProvider.officeDevDeployTitle": "Deploy",
   "teamstoolkit.commandsTreeViewProvider.officeDevDeployDescription": "Deploy",