diff --git a/web/app/components/datasets/common/image-uploader/utils.ts b/web/app/components/datasets/common/image-uploader/utils.ts
index c2fad83840..2a5b58c375 100644
--- a/web/app/components/datasets/common/image-uploader/utils.ts
+++ b/web/app/components/datasets/common/image-uploader/utils.ts
@@ -14,6 +14,13 @@ export const getFileType = (currentFile: File) => {
   return arr[arr.length - 1]
 }
 
+export const getFileSize = (size: number): string => {
+  if (size / 1024 < 10)
+    return `${(size / 1024).toFixed(2)}KB`
+
+  return `${(size / 1024 / 1024).toFixed(2)}MB`
+}
+
 type FileWithPath = {
   relativePath?: string
 } & File
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/file-list-item.spec.tsx b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/file-list-item.spec.tsx
new file mode 100644
index 0000000000..60e87c4a70
--- /dev/null
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/file-list-item.spec.tsx
@@ -0,0 +1,351 @@
+import type { FileListItemProps } from './file-list-item'
+import type { CustomFile as File, FileItem } from '@/models/datasets'
+import { fireEvent, render, screen } from '@testing-library/react'
+import { beforeEach, describe, expect, it, vi } from 'vitest'
+import { PROGRESS_ERROR, PROGRESS_NOT_STARTED } from '../constants'
+import FileListItem from './file-list-item'
+
+// Mock theme hook - can be changed per test
+let mockTheme = 'light'
+vi.mock('@/hooks/use-theme', () => ({
+  default: () => ({ theme: mockTheme }),
+}))
+
+// Mock theme types
+vi.mock('@/types/app', () => ({
+  Theme: { dark: 'dark', light: 'light' },
+}))
+
+// Mock SimplePieChart with dynamic import handling
+vi.mock('next/dynamic', () => ({
+  default: () => {
+    const DynamicComponent = ({ percentage, stroke, fill }: { percentage: number, stroke: string, fill: string }) => (
+      <div data-testid="pie-chart" data-percentage={percentage} data-stroke={stroke} data-fill={fill}>
+        Pie Chart:
+        {' '}
+        {percentage}
+        %
+      </div>
+    )
+    DynamicComponent.displayName = 'SimplePieChart'
+    return DynamicComponent
+  },
+}))
+
+// Mock DocumentFileIcon
+vi.mock('@/app/components/datasets/common/document-file-icon', () => ({
+  default: ({ name, extension, size }: { name: string, extension: string, size: string }) => (
+    <div data-testid="document-icon" data-name={name} data-extension={extension} data-size={size}>
+      Document Icon
+    </div>
+  ),
+}))
+
+describe('FileListItem', () => {
+  const createMockFile = (overrides: Partial<File> = {}): File => ({
+    name: 'test-document.pdf',
+    size: 1024 * 100, // 100KB
+    type: 'application/pdf',
+    lastModified: Date.now(),
+    ...overrides,
+  } as File)
+
+  const createMockFileItem = (overrides: Partial<FileItem> = {}): FileItem => ({
+    fileID: 'file-123',
+    file: createMockFile(overrides.file as Partial<File>),
+    progress: PROGRESS_NOT_STARTED,
+    ...overrides,
+  })
+
+  const defaultProps: FileListItemProps = {
+    fileItem: createMockFileItem(),
+    onPreview: vi.fn(),
+    onRemove: vi.fn(),
+  }
+
+  beforeEach(() => {
+    vi.clearAllMocks()
+  })
+
+  describe('rendering', () => {
+    it('should render the file item container', () => {
+      const { container } = render(<FileListItem {...defaultProps} />)
+
+      const item = container.firstChild as HTMLElement
+      expect(item).toHaveClass('flex', 'h-12', 'items-center', 'rounded-lg')
+    })
+
+    it('should render document icon with correct props', () => {
+      render(<FileListItem {...defaultProps} />)
+
+      const icon = screen.getByTestId('document-icon')
+      expect(icon).toBeInTheDocument()
+      expect(icon).toHaveAttribute('data-name', 'test-document.pdf')
+      expect(icon).toHaveAttribute('data-extension', 'pdf')
+      expect(icon).toHaveAttribute('data-size', 'lg')
+    })
+
+    it('should render file name', () => {
+      render(<FileListItem {...defaultProps} />)
+
+      expect(screen.getByText('test-document.pdf')).toBeInTheDocument()
+    })
+
+    it('should render file extension in uppercase via CSS class', () => {
+      render(<FileListItem {...defaultProps} />)
+
+      // Extension is rendered in lowercase but styled with uppercase CSS
+      const extensionSpan = screen.getByText('pdf')
+      expect(extensionSpan).toBeInTheDocument()
+      expect(extensionSpan).toHaveClass('uppercase')
+    })
+
+    it('should render file size', () => {
+      render(<FileListItem {...defaultProps} />)
+
+      // 100KB (102400 bytes) is >= 10KB threshold so displays in MB
+      expect(screen.getByText('0.10MB')).toBeInTheDocument()
+    })
+
+    it('should render delete button', () => {
+      const { container } = render(<FileListItem {...defaultProps} />)
+
+      const deleteButton = container.querySelector('.cursor-pointer')
+      expect(deleteButton).toBeInTheDocument()
+    })
+  })
+
+  describe('progress states', () => {
+    it('should show progress chart when uploading (0-99)', () => {
+      const fileItem = createMockFileItem({ progress: 50 })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      const pieChart = screen.getByTestId('pie-chart')
+      expect(pieChart).toBeInTheDocument()
+      expect(pieChart).toHaveAttribute('data-percentage', '50')
+    })
+
+    it('should show progress chart at 0%', () => {
+      const fileItem = createMockFileItem({ progress: 0 })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      const pieChart = screen.getByTestId('pie-chart')
+      expect(pieChart).toHaveAttribute('data-percentage', '0')
+    })
+
+    it('should not show progress chart when complete (100)', () => {
+      const fileItem = createMockFileItem({ progress: 100 })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.queryByTestId('pie-chart')).not.toBeInTheDocument()
+    })
+
+    it('should not show progress chart when not started (-1)', () => {
+      const fileItem = createMockFileItem({ progress: PROGRESS_NOT_STARTED })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.queryByTestId('pie-chart')).not.toBeInTheDocument()
+    })
+  })
+
+  describe('error state', () => {
+    it('should show error icon when progress is PROGRESS_ERROR', () => {
+      const fileItem = createMockFileItem({ progress: PROGRESS_ERROR })
+      const { container } = render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      const errorIcon = container.querySelector('.text-text-destructive')
+      expect(errorIcon).toBeInTheDocument()
+    })
+
+    it('should apply error styling to container', () => {
+      const fileItem = createMockFileItem({ progress: PROGRESS_ERROR })
+      const { container } = render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      const item = container.firstChild as HTMLElement
+      expect(item).toHaveClass('border-state-destructive-border', 'bg-state-destructive-hover')
+    })
+
+    it('should not show error styling when not in error state', () => {
+      const { container } = render(<FileListItem {...defaultProps} />)
+
+      const item = container.firstChild as HTMLElement
+      expect(item).not.toHaveClass('border-state-destructive-border')
+    })
+  })
+
+  describe('theme handling', () => {
+    it('should use correct chart color for light theme', () => {
+      mockTheme = 'light'
+      const fileItem = createMockFileItem({ progress: 50 })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      const pieChart = screen.getByTestId('pie-chart')
+      expect(pieChart).toHaveAttribute('data-stroke', '#296dff')
+      expect(pieChart).toHaveAttribute('data-fill', '#296dff')
+    })
+
+    it('should use correct chart color for dark theme', () => {
+      mockTheme = 'dark'
+      const fileItem = createMockFileItem({ progress: 50 })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      const pieChart = screen.getByTestId('pie-chart')
+      expect(pieChart).toHaveAttribute('data-stroke', '#5289ff')
+      expect(pieChart).toHaveAttribute('data-fill', '#5289ff')
+    })
+  })
+
+  describe('event handlers', () => {
+    it('should call onPreview when item is clicked', () => {
+      const onPreview = vi.fn()
+      const fileItem = createMockFileItem()
+      render(<FileListItem {...defaultProps} fileItem={fileItem} onPreview={onPreview} />)
+
+      const item = screen.getByText('test-document.pdf').closest('[class*="flex h-12"]')!
+      fireEvent.click(item)
+
+      expect(onPreview).toHaveBeenCalledTimes(1)
+      expect(onPreview).toHaveBeenCalledWith(fileItem.file)
+    })
+
+    it('should call onRemove when delete button is clicked', () => {
+      const onRemove = vi.fn()
+      const fileItem = createMockFileItem()
+      const { container } = render(<FileListItem {...defaultProps} fileItem={fileItem} onRemove={onRemove} />)
+
+      const deleteButton = container.querySelector('.cursor-pointer')!
+      fireEvent.click(deleteButton)
+
+      expect(onRemove).toHaveBeenCalledTimes(1)
+      expect(onRemove).toHaveBeenCalledWith('file-123')
+    })
+
+    it('should stop propagation when delete button is clicked', () => {
+      const onPreview = vi.fn()
+      const onRemove = vi.fn()
+      const { container } = render(<FileListItem {...defaultProps} onPreview={onPreview} onRemove={onRemove} />)
+
+      const deleteButton = container.querySelector('.cursor-pointer')!
+      fireEvent.click(deleteButton)
+
+      expect(onRemove).toHaveBeenCalledTimes(1)
+      expect(onPreview).not.toHaveBeenCalled()
+    })
+  })
+
+  describe('file type handling', () => {
+    it('should handle files with multiple dots in name', () => {
+      const fileItem = createMockFileItem({
+        file: createMockFile({ name: 'my.document.file.docx' }),
+      })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.getByText('my.document.file.docx')).toBeInTheDocument()
+      // Extension is lowercase with uppercase CSS class
+      expect(screen.getByText('docx')).toBeInTheDocument()
+    })
+
+    it('should handle files without extension', () => {
+      const fileItem = createMockFileItem({
+        file: createMockFile({ name: 'README' }),
+      })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      // getFileType returns 'README' when there's no extension (last part after split)
+      expect(screen.getAllByText('README')).toHaveLength(2) // filename and extension
+    })
+
+    it('should handle various file extensions', () => {
+      const extensions = ['txt', 'md', 'json', 'csv', 'xlsx']
+
+      extensions.forEach((ext) => {
+        const fileItem = createMockFileItem({
+          file: createMockFile({ name: `file.${ext}` }),
+        })
+        const { unmount } = render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+        // Extension is rendered in lowercase with uppercase CSS class
+        expect(screen.getByText(ext)).toBeInTheDocument()
+        unmount()
+      })
+    })
+  })
+
+  describe('file size display', () => {
+    it('should display size in KB for small files', () => {
+      const fileItem = createMockFileItem({
+        file: createMockFile({ size: 5 * 1024 }), // 5KB
+      })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.getByText('5.00KB')).toBeInTheDocument()
+    })
+
+    it('should display size in MB for larger files', () => {
+      const fileItem = createMockFileItem({
+        file: createMockFile({ size: 5 * 1024 * 1024 }), // 5MB
+      })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.getByText('5.00MB')).toBeInTheDocument()
+    })
+
+    it('should display size at threshold (10KB)', () => {
+      const fileItem = createMockFileItem({
+        file: createMockFile({ size: 10 * 1024 }), // 10KB
+      })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.getByText('0.01MB')).toBeInTheDocument()
+    })
+  })
+
+  describe('upload progress values', () => {
+    it('should show chart at progress 1', () => {
+      const fileItem = createMockFileItem({ progress: 1 })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.getByTestId('pie-chart')).toBeInTheDocument()
+    })
+
+    it('should show chart at progress 99', () => {
+      const fileItem = createMockFileItem({ progress: 99 })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.getByTestId('pie-chart')).toHaveAttribute('data-percentage', '99')
+    })
+
+    it('should not show chart at progress 100', () => {
+      const fileItem = createMockFileItem({ progress: 100 })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      expect(screen.queryByTestId('pie-chart')).not.toBeInTheDocument()
+    })
+  })
+
+  describe('styling', () => {
+    it('should have proper shadow styling', () => {
+      const { container } = render(<FileListItem {...defaultProps} />)
+
+      const item = container.firstChild as HTMLElement
+      expect(item).toHaveClass('shadow-xs')
+    })
+
+    it('should have proper border styling', () => {
+      const { container } = render(<FileListItem {...defaultProps} />)
+
+      const item = container.firstChild as HTMLElement
+      expect(item).toHaveClass('border', 'border-components-panel-border')
+    })
+
+    it('should truncate long file names', () => {
+      const longFileName = 'this-is-a-very-long-file-name-that-should-be-truncated.pdf'
+      const fileItem = createMockFileItem({
+        file: createMockFile({ name: longFileName }),
+      })
+      render(<FileListItem {...defaultProps} fileItem={fileItem} />)
+
+      const nameElement = screen.getByText(longFileName)
+      expect(nameElement).toHaveClass('truncate')
+    })
+  })
+})
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/file-list-item.tsx b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/file-list-item.tsx
new file mode 100644
index 0000000000..22129fcfe2
--- /dev/null
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/file-list-item.tsx
@@ -0,0 +1,84 @@
+import type { CustomFile as File, FileItem } from '@/models/datasets'
+import { RiDeleteBinLine, RiErrorWarningFill } from '@remixicon/react'
+import dynamic from 'next/dynamic'
+import { useMemo } from 'react'
+import DocumentFileIcon from '@/app/components/datasets/common/document-file-icon'
+import { getFileSize, getFileType } from '@/app/components/datasets/common/image-uploader/utils'
+import useTheme from '@/hooks/use-theme'
+import { Theme } from '@/types/app'
+import { cn } from '@/utils/classnames'
+import { PROGRESS_ERROR } from '../constants'
+
+const SimplePieChart = dynamic(() => import('@/app/components/base/simple-pie-chart'), { ssr: false })
+
+export type FileListItemProps = {
+  fileItem: FileItem
+  onPreview: (file: File) => void
+  onRemove: (fileID: string) => void
+}
+
+const FileListItem = ({
+  fileItem,
+  onPreview,
+  onRemove,
+}: FileListItemProps) => {
+  const { theme } = useTheme()
+  const chartColor = useMemo(() => theme === Theme.dark ? '#5289ff' : '#296dff', [theme])
+
+  const isUploading = fileItem.progress >= 0 && fileItem.progress < 100
+  const isError = fileItem.progress === PROGRESS_ERROR
+
+  const handleClick = () => {
+    onPreview(fileItem.file)
+  }
+
+  const handleRemove = (e: React.MouseEvent) => {
+    e.stopPropagation()
+    onRemove(fileItem.fileID)
+  }
+
+  return (
+    <div
+      onClick={handleClick}
+      className={cn(
+        'flex h-12 items-center rounded-lg border border-components-panel-border bg-components-panel-on-panel-item-bg shadow-xs shadow-shadow-shadow-4',
+        isError && 'border-state-destructive-border bg-state-destructive-hover',
+      )}
+    >
+      <div className="flex w-12 shrink-0 items-center justify-center">
+        <DocumentFileIcon
+          size="lg"
+          className="shrink-0"
+          name={fileItem.file.name}
+          extension={getFileType(fileItem.file)}
+        />
+      </div>
+      <div className="flex shrink grow flex-col gap-0.5">
+        <div className="flex w-full">
+          <div className="w-0 grow truncate text-xs text-text-secondary">{fileItem.file.name}</div>
+        </div>
+        <div className="w-full truncate text-2xs leading-3 text-text-tertiary">
+          <span className="uppercase">{getFileType(fileItem.file)}</span>
+          <span className="px-1 text-text-quaternary">·</span>
+          <span>{getFileSize(fileItem.file.size)}</span>
+        </div>
+      </div>
+      <div className="flex w-16 shrink-0 items-center justify-end gap-1 pr-3">
+        {isUploading && (
+          <SimplePieChart percentage={fileItem.progress} stroke={chartColor} fill={chartColor} animationDuration={0} />
+        )}
+        {isError && (
+          <RiErrorWarningFill className="size-4 text-text-destructive" />
+        )}
+        <span
+          className="flex h-6 w-6 cursor-pointer items-center justify-center"
+          onClick={handleRemove}
+        >
+          <RiDeleteBinLine className="size-4 text-text-tertiary" />
+        </span>
+      </div>
+    </div>
+  )
+}
+
+export default FileListItem
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/upload-dropzone.spec.tsx b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/upload-dropzone.spec.tsx
new file mode 100644
index 0000000000..21742b731c
--- /dev/null
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/upload-dropzone.spec.tsx
@@ -0,0 +1,231 @@
+import type { RefObject } from 'react'
+import type { UploadDropzoneProps } from './upload-dropzone'
+import { fireEvent, render, screen } from '@testing-library/react'
+import { beforeEach, describe, expect, it, vi } from 'vitest'
+import UploadDropzone from './upload-dropzone'
+
+// Helper to create mock ref objects for testing
+const createMockRef = <T,>(value: T | null = null): RefObject<T | null> => ({ current: value })
+
+// Mock react-i18next
+vi.mock('react-i18next', () => ({
+  useTranslation: () => ({
+    t: (key: string, options?: { ns?: string }) => {
+      const translations: Record<string, string> = {
+        'stepOne.uploader.button': 'Drag and drop files, or',
+        'stepOne.uploader.buttonSingleFile': 'Drag and drop file, or',
+        'stepOne.uploader.browse': 'Browse',
+        'stepOne.uploader.tip': 'Supports {{supportTypes}}, Max {{size}}MB each, up to {{batchCount}} files at a time, {{totalCount}} files total',
+      }
+      let result = translations[key] || key
+      if (options && typeof options === 'object') {
+        Object.entries(options).forEach(([k, v]) => {
+          result = result.replace(`{{${k}}}`, String(v))
+        })
+      }
+      return result
+    },
+  }),
+}))
+
+describe('UploadDropzone', () => {
+  const defaultProps: UploadDropzoneProps = {
+    dropRef: createMockRef<HTMLDivElement>() as RefObject<HTMLDivElement | null>,
+    dragRef: createMockRef<HTMLDivElement>() as RefObject<HTMLDivElement | null>,
+    fileUploaderRef: createMockRef<HTMLInputElement>() as RefObject<HTMLInputElement | null>,
+    dragging: false,
+    supportBatchUpload: true,
+    supportTypesShowNames: 'PDF, DOCX, TXT',
+    fileUploadConfig: {
+      file_size_limit: 15,
+      batch_count_limit: 5,
+      file_upload_limit: 10,
+    },
+    acceptTypes: ['.pdf', '.docx', '.txt'],
+    onSelectFile: vi.fn(),
+    onFileChange: vi.fn(),
+    allowedExtensions: ['pdf', 'docx', 'txt'],
+  }
+
+  beforeEach(() => {
+    vi.clearAllMocks()
+  })
+
+  describe('rendering', () => {
+    it('should render the dropzone container', () => {
+      const { container } = render(<UploadDropzone {...defaultProps} />)
+
+      const dropzone = container.querySelector('[class*="border-dashed"]')
+      expect(dropzone).toBeInTheDocument()
+    })
+
+    it('should render hidden file input', () => {
+      render(<UploadDropzone {...defaultProps} />)
+
+      const input = document.getElementById('fileUploader') as HTMLInputElement
+      expect(input).toBeInTheDocument()
+      expect(input).toHaveClass('hidden')
+      expect(input).toHaveAttribute('type', 'file')
+    })
+
+    it('should render upload icon', () => {
+      render(<UploadDropzone {...defaultProps} />)
+
+      const icon = document.querySelector('svg')
+      expect(icon).toBeInTheDocument()
+    })
+
+    it('should render browse label when extensions are allowed', () => {
+      render(<UploadDropzone {...defaultProps} />)
+
+      expect(screen.getByText('Browse')).toBeInTheDocument()
+    })
+
+    it('should not render browse label when no extensions allowed', () => {
+      render(<UploadDropzone {...defaultProps} allowedExtensions={[]} />)
+
+      expect(screen.queryByText('Browse')).not.toBeInTheDocument()
+    })
+
+    it('should render file size and count limits', () => {
+      render(<UploadDropzone {...defaultProps} />)
+
+      const tipText = screen.getByText(/Supports.*Max.*15MB/i)
+      expect(tipText).toBeInTheDocument()
+    })
+  })
+
+  describe('file input configuration', () => {
+    it('should allow multiple files when supportBatchUpload is true', () => {
+      render(<UploadDropzone {...defaultProps} supportBatchUpload={true} />)
+
+      const input = document.getElementById('fileUploader') as HTMLInputElement
+      expect(input).toHaveAttribute('multiple')
+    })
+
+    it('should not allow multiple files when supportBatchUpload is false', () => {
+      render(<UploadDropzone {...defaultProps} supportBatchUpload={false} />)
+
+      const input = document.getElementById('fileUploader') as HTMLInputElement
+      expect(input).not.toHaveAttribute('multiple')
+    })
+
+    it('should set accept attribute with correct types', () => {
+      render(<UploadDropzone {...defaultProps} acceptTypes={['.pdf', '.docx']} />)
+
+      const input = document.getElementById('fileUploader') as HTMLInputElement
+      expect(input).toHaveAttribute('accept', '.pdf,.docx')
+    })
+  })
+
+  describe('text content', () => {
+    it('should show batch upload text when supportBatchUpload is true', () => {
+      render(<UploadDropzone {...defaultProps} supportBatchUpload={true} />)
+
+      expect(screen.getByText(/Drag and drop files/i)).toBeInTheDocument()
+    })
+
+    it('should show single file text when supportBatchUpload is false', () => {
+      render(<UploadDropzone {...defaultProps} supportBatchUpload={false} />)
+
+      expect(screen.getByText(/Drag and drop file/i)).toBeInTheDocument()
+    })
+  })
+
+  describe('dragging state', () => {
+    it('should apply dragging styles when dragging is true', () => {
+      const { container } = render(<UploadDropzone {...defaultProps} dragging={true} />)
+
+      const dropzone = container.querySelector('[class*="border-components-dropzone-border-accent"]')
+      expect(dropzone).toBeInTheDocument()
+    })
+
+    it('should render drag overlay when dragging', () => {
+      const dragRef = createMockRef<HTMLDivElement>()
+      render(<UploadDropzone {...defaultProps} dragging={true} dragRef={dragRef as RefObject<HTMLDivElement | null>} />)
+
+      const overlay = document.querySelector('.absolute.left-0.top-0')
+      expect(overlay).toBeInTheDocument()
+    })
+
+    it('should not render drag overlay when not dragging', () => {
+      render(<UploadDropzone {...defaultProps} dragging={false} />)
+
+      const overlay = document.querySelector('.absolute.left-0.top-0')
+      expect(overlay).not.toBeInTheDocument()
+    })
+  })
+
+  describe('event handlers', () => {
+    it('should call onSelectFile when browse label is clicked', () => {
+      const onSelectFile = vi.fn()
+      render(<UploadDropzone {...defaultProps} onSelectFile={onSelectFile} />)
+
+      const browseLabel = screen.getByText('Browse')
+      fireEvent.click(browseLabel)
+
+      expect(onSelectFile).toHaveBeenCalledTimes(1)
+    })
+
+    it('should call onFileChange when files are selected', () => {
+      const onFileChange = vi.fn()
+      render(<UploadDropzone {...defaultProps} onFileChange={onFileChange} />)
+
+      const input = document.getElementById('fileUploader') as HTMLInputElement
+      const file = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+
+      fireEvent.change(input, { target: { files: [file] } })
+
+      expect(onFileChange).toHaveBeenCalledTimes(1)
+    })
+  })
+
+  describe('refs', () => {
+    it('should attach dropRef to drop container', () => {
+      const dropRef = createMockRef<HTMLDivElement>()
+      render(<UploadDropzone {...defaultProps} dropRef={dropRef as RefObject<HTMLDivElement | null>} />)
+
+      expect(dropRef.current).toBeInstanceOf(HTMLDivElement)
+    })
+
+    it('should attach fileUploaderRef to input element', () => {
+      const fileUploaderRef = createMockRef<HTMLInputElement>()
+      render(<UploadDropzone {...defaultProps} fileUploaderRef={fileUploaderRef as RefObject<HTMLInputElement | null>} />)
+
+      expect(fileUploaderRef.current).toBeInstanceOf(HTMLInputElement)
+    })
+
+    it('should attach dragRef to overlay when dragging', () => {
+      const dragRef = createMockRef<HTMLDivElement>()
+      render(<UploadDropzone {...defaultProps} dragging={true} dragRef={dragRef as RefObject<HTMLDivElement | null>} />)
+
+      expect(dragRef.current).toBeInstanceOf(HTMLDivElement)
+    })
+  })
+
+  describe('styling', () => {
+    it('should have base dropzone styling', () => {
+      const { container } = render(<UploadDropzone {...defaultProps} />)
+
+      const dropzone = container.querySelector('[class*="border-dashed"]')
+      expect(dropzone).toBeInTheDocument()
+      expect(dropzone).toHaveClass('rounded-xl')
+    })
+
+    it('should have cursor-pointer on browse label', () => {
+      render(<UploadDropzone {...defaultProps} />)
+
+      const browseLabel = screen.getByText('Browse')
+      expect(browseLabel).toHaveClass('cursor-pointer')
+    })
+  })
+
+  describe('accessibility', () => {
+    it('should have an accessible file input', () => {
+      render(<UploadDropzone {...defaultProps} />)
+
+      const input = document.getElementById('fileUploader') as HTMLInputElement
+      expect(input).toHaveAttribute('id', 'fileUploader')
+    })
+  })
+})
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/upload-dropzone.tsx b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/upload-dropzone.tsx
new file mode 100644
index 0000000000..66bf42d365
--- /dev/null
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/components/upload-dropzone.tsx
@@ -0,0 +1,83 @@
+import type { ChangeEvent, RefObject } from 'react'
+import { RiUploadCloud2Line } from '@remixicon/react'
+import { useTranslation } from 'react-i18next'
+import { cn } from '@/utils/classnames'
+
+type FileUploadConfig = {
+  file_size_limit: number
+  batch_count_limit: number
+  file_upload_limit: number
+}
+
+export type UploadDropzoneProps = {
+  dropRef: RefObject<HTMLDivElement | null>
+  dragRef: RefObject<HTMLDivElement | null>
+  fileUploaderRef: RefObject<HTMLInputElement | null>
+  dragging: boolean
+  supportBatchUpload: boolean
+  supportTypesShowNames: string
+  fileUploadConfig: FileUploadConfig
+  acceptTypes: string[]
+  onSelectFile: () => void
+  onFileChange: (e: ChangeEvent<HTMLInputElement>) => void
+  allowedExtensions: string[]
+}
+
+const UploadDropzone = ({
+  dropRef,
+  dragRef,
+  fileUploaderRef,
+  dragging,
+  supportBatchUpload,
+  supportTypesShowNames,
+  fileUploadConfig,
+  acceptTypes,
+  onSelectFile,
+  onFileChange,
+  allowedExtensions,
+}: UploadDropzoneProps) => {
+  const { t } = useTranslation()
+
+  return (
+    <>
+      <input
+        ref={fileUploaderRef}
+        id="fileUploader"
+        className="hidden"
+        type="file"
+        multiple={supportBatchUpload}
+        accept={acceptTypes.join(',')}
+        onChange={onFileChange}
+      />
+      <div
+        ref={dropRef}
+        className={cn(
+          'relative box-border flex min-h-20 flex-col items-center justify-center gap-1 rounded-xl border border-dashed border-components-dropzone-border bg-components-dropzone-bg px-4 py-3 text-xs leading-4 text-text-tertiary',
+          dragging && 'border-components-dropzone-border-accent bg-components-dropzone-bg-accent',
+        )}
+      >
+        <div className="flex min-h-5 items-center justify-center text-sm leading-4 text-text-secondary">
+          <RiUploadCloud2Line className="mr-2 size-5" />
+          <span>
+            {supportBatchUpload ? t('stepOne.uploader.button', { ns: 'datasetCreation' }) : t('stepOne.uploader.buttonSingleFile', { ns: 'datasetCreation' })}
+            {allowedExtensions.length > 0 && (
+              <label className="ml-1 cursor-pointer text-text-accent" onClick={onSelectFile}>{t('stepOne.uploader.browse', { ns: 'datasetCreation' })}</label>
+            )}
+          </span>
+        </div>
+        <div>
+          {t('stepOne.uploader.tip', {
+            ns: 'datasetCreation',
+            size: fileUploadConfig.file_size_limit,
+            supportTypes: supportTypesShowNames,
+            batchCount: fileUploadConfig.batch_count_limit,
+            totalCount: fileUploadConfig.file_upload_limit,
+          })}
+        </div>
+        {dragging && <div ref={dragRef} className="absolute left-0 top-0 h-full w-full" />}
+      </div>
+    </>
+  )
+}
+
+export default UploadDropzone
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/constants.ts b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/constants.ts
new file mode 100644
index 0000000000..cda2dae868
--- /dev/null
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/constants.ts
@@ -0,0 +1,3 @@
+export const PROGRESS_NOT_STARTED = -1
+export const PROGRESS_ERROR = -2
+export const PROGRESS_COMPLETE = 100
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/hooks/use-local-file-upload.spec.tsx b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/hooks/use-local-file-upload.spec.tsx
new file mode 100644
index 0000000000..f5bd2ac841
--- /dev/null
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/hooks/use-local-file-upload.spec.tsx
@@ -0,0 +1,879 @@
+import type { ReactNode } from 'react'
+import type { CustomFile, FileItem } from '@/models/datasets'
+import { act, render, renderHook, waitFor } from '@testing-library/react'
+import { beforeEach, describe, expect, it, vi } from 'vitest'
+import { PROGRESS_ERROR, PROGRESS_NOT_STARTED } from '../constants'
+
+// Mock notify function - defined before mocks
+const mockNotify = vi.fn()
+const mockClose = vi.fn()
+
+// Mock ToastContext with factory function
+vi.mock('@/app/components/base/toast', async () => {
+  const { createContext, useContext } = await import('use-context-selector')
+  const context = createContext({ notify: mockNotify, close: mockClose })
+  return {
+    ToastContext: context,
+    useToastContext: () => useContext(context),
+  }
+})
+
+// Mock file uploader utils
+vi.mock('@/app/components/base/file-uploader/utils', () => ({
+  getFileUploadErrorMessage: (e: Error, defaultMsg: string) => e.message || defaultMsg,
+}))
+
+// Mock react-i18next
+vi.mock('react-i18next', () => ({
+  useTranslation: () => ({
+    t: (key: string) => key,
+  }),
+}))
+
+// Mock locale context
+vi.mock('@/context/i18n', () => ({
+  useLocale: () => 'en-US',
+}))
+
+// Mock i18n config
+vi.mock('@/i18n-config/language', () => ({
+  LanguagesSupported: ['en-US', 'zh-Hans'],
+}))
+
+// Mock config
+vi.mock('@/config', () => ({
+  IS_CE_EDITION: false,
+}))
+
+// Mock store functions
+const mockSetLocalFileList = vi.fn()
+const mockSetCurrentLocalFile = vi.fn()
+const mockGetState = vi.fn(() => ({
+  setLocalFileList: mockSetLocalFileList,
+  setCurrentLocalFile: mockSetCurrentLocalFile,
+}))
+const mockStore = { getState: mockGetState }
+
+vi.mock('../../store', () => ({
+  useDataSourceStoreWithSelector: vi.fn((selector: (state: { localFileList: FileItem[] }) => FileItem[]) =>
+    selector({ localFileList: [] }),
+  ),
+  useDataSourceStore: vi.fn(() => mockStore),
+}))
+
+// Mock file upload config
+vi.mock('@/service/use-common', () => ({
+  useFileUploadConfig: vi.fn(() => ({
+    data: {
+      file_size_limit: 15,
+      batch_count_limit: 5,
+      file_upload_limit: 10,
+    },
+  })),
+}))
+
+// Mock upload service
+const mockUpload = vi.fn()
+vi.mock('@/service/base', () => ({
+  upload: (...args: unknown[]) => mockUpload(...args),
+}))
+
+// Import after all mocks are set up
+const { useLocalFileUpload } = await import('./use-local-file-upload')
+const { ToastContext } = await import('@/app/components/base/toast')
+
+const createWrapper = () => {
+  return ({ children }: { children: ReactNode }) => (
+    <ToastContext.Provider value={{ notify: mockNotify, close: mockClose }}>
+      {children}
+    </ToastContext.Provider>
+  )
+}
+
+describe('useLocalFileUpload', () => {
+  beforeEach(() => {
+    vi.clearAllMocks()
+    mockUpload.mockReset()
+  })
+
+  describe('initialization', () => {
+    it('should initialize with default values', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf', 'docx'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.dragging).toBe(false)
+      expect(result.current.localFileList).toEqual([])
+      expect(result.current.hideUpload).toBe(false)
+    })
+
+    it('should create refs for dropzone, drag area, and file uploader', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.dropRef).toBeDefined()
+      expect(result.current.dragRef).toBeDefined()
+      expect(result.current.fileUploaderRef).toBeDefined()
+    })
+
+    it('should compute acceptTypes from allowedExtensions', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf', 'docx', 'txt'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.acceptTypes).toEqual(['.pdf', '.docx', '.txt'])
+    })
+
+    it('should compute supportTypesShowNames correctly', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf', 'docx', 'md'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.supportTypesShowNames).toContain('PDF')
+      expect(result.current.supportTypesShowNames).toContain('DOCX')
+      expect(result.current.supportTypesShowNames).toContain('MARKDOWN')
+    })
+
+    it('should provide file upload config with defaults', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.fileUploadConfig.file_size_limit).toBe(15)
+      expect(result.current.fileUploadConfig.batch_count_limit).toBe(5)
+      expect(result.current.fileUploadConfig.file_upload_limit).toBe(10)
+    })
+  })
+
+  describe('supportBatchUpload option', () => {
+    it('should use batch limits when supportBatchUpload is true', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'], supportBatchUpload: true }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.fileUploadConfig.batch_count_limit).toBe(5)
+      expect(result.current.fileUploadConfig.file_upload_limit).toBe(10)
+    })
+
+    it('should use single file limits when supportBatchUpload is false', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'], supportBatchUpload: false }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.fileUploadConfig.batch_count_limit).toBe(1)
+      expect(result.current.fileUploadConfig.file_upload_limit).toBe(1)
+    })
+  })
+
+  describe('selectHandle', () => {
+    it('should trigger file input click', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockClick = vi.fn()
+      const mockInput = { click: mockClick } as unknown as HTMLInputElement
+      Object.defineProperty(result.current.fileUploaderRef, 'current', {
+        value: mockInput,
+        writable: true,
+      })
+
+      act(() => {
+        result.current.selectHandle()
+      })
+
+      expect(mockClick).toHaveBeenCalled()
+    })
+
+    it('should handle null fileUploaderRef gracefully', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(() => {
+        act(() => {
+          result.current.selectHandle()
+        })
+      }).not.toThrow()
+    })
+  })
+
+  describe('removeFile', () => {
+    it('should remove file from list', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      act(() => {
+        result.current.removeFile('file-id-123')
+      })
+
+      expect(mockSetLocalFileList).toHaveBeenCalled()
+    })
+
+    it('should clear file input value when removing', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockInput = { value: 'some-file.pdf' } as HTMLInputElement
+      Object.defineProperty(result.current.fileUploaderRef, 'current', {
+        value: mockInput,
+        writable: true,
+      })
+
+      act(() => {
+        result.current.removeFile('file-id')
+      })
+
+      expect(mockInput.value).toBe('')
+    })
+  })
+
+  describe('handlePreview', () => {
+    it('should set current local file when file has id', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = { id: 'file-123', name: 'test.pdf', size: 1024 }
+
+      act(() => {
+        result.current.handlePreview(mockFile as unknown as CustomFile)
+      })
+
+      expect(mockSetCurrentLocalFile).toHaveBeenCalledWith(mockFile)
+    })
+
+    it('should not set current file when file has no id', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = { name: 'test.pdf', size: 1024 }
+
+      act(() => {
+        result.current.handlePreview(mockFile as unknown as CustomFile)
+      })
+
+      expect(mockSetCurrentLocalFile).not.toHaveBeenCalled()
+    })
+  })
+
+  describe('fileChangeHandle', () => {
+    it('should handle valid files', async () => {
+      mockUpload.mockResolvedValue({ id: 'uploaded-id' })
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+      const event = {
+        target: {
+          files: [mockFile],
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        expect(mockSetLocalFileList).toHaveBeenCalled()
+      })
+    })
+
+    it('should handle empty file list', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const event = {
+        target: {
+          files: null,
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      expect(mockSetLocalFileList).not.toHaveBeenCalled()
+    })
+
+    it('should reject files with invalid type', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.exe', { type: 'application/exe' })
+      const event = {
+        target: {
+          files: [mockFile],
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      expect(mockNotify).toHaveBeenCalledWith(
+        expect.objectContaining({ type: 'error' }),
+      )
+    })
+
+    it('should reject files exceeding size limit', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      // Create a mock file larger than 15MB
+      const largeSize = 20 * 1024 * 1024
+      const mockFile = new File([''], 'large.pdf', { type: 'application/pdf' })
+      Object.defineProperty(mockFile, 'size', { value: largeSize })
+
+      const event = {
+        target: {
+          files: [mockFile],
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      expect(mockNotify).toHaveBeenCalledWith(
+        expect.objectContaining({ type: 'error' }),
+      )
+    })
+
+    it('should limit files to batch count limit', async () => {
+      mockUpload.mockResolvedValue({ id: 'uploaded-id' })
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      // Create 10 files but batch limit is 5
+      const files = Array.from({ length: 10 }, (_, i) =>
+        new File(['content'], `file${i}.pdf`, { type: 'application/pdf' }))
+
+      const event = {
+        target: {
+          files,
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        expect(mockSetLocalFileList).toHaveBeenCalled()
+      })
+
+      // Should only process first 5 files (batch_count_limit)
+      const firstCall = mockSetLocalFileList.mock.calls[0]
+      expect(firstCall[0].length).toBeLessThanOrEqual(5)
+    })
+  })
+
+  describe('upload handling', () => {
+    it('should handle successful upload', async () => {
+      const uploadedResponse = { id: 'server-file-id' }
+      mockUpload.mockResolvedValue(uploadedResponse)
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+      const event = {
+        target: {
+          files: [mockFile],
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        expect(mockUpload).toHaveBeenCalled()
+      })
+    })
+
+    it('should handle upload error', async () => {
+      mockUpload.mockRejectedValue(new Error('Upload failed'))
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+      const event = {
+        target: {
+          files: [mockFile],
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        expect(mockNotify).toHaveBeenCalledWith(
+          expect.objectContaining({ type: 'error' }),
+        )
+      })
+    })
+
+    it('should call upload with correct parameters', async () => {
+      mockUpload.mockResolvedValue({ id: 'file-id' })
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+      const event = {
+        target: {
+          files: [mockFile],
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        expect(mockUpload).toHaveBeenCalledWith(
+          expect.objectContaining({
+            xhr: expect.any(XMLHttpRequest),
+            data: expect.any(FormData),
+          }),
+          false,
+          undefined,
+          '?source=datasets',
+        )
+      })
+    })
+  })
+
+  describe('extension mapping', () => {
+    it('should map md to markdown', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['md'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.supportTypesShowNames).toContain('MARKDOWN')
+    })
+
+    it('should map htm to html', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['htm'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.supportTypesShowNames).toContain('HTML')
+    })
+
+    it('should preserve unmapped extensions', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf', 'txt'] }),
+        { wrapper: createWrapper() },
+      )
+
+      expect(result.current.supportTypesShowNames).toContain('PDF')
+      expect(result.current.supportTypesShowNames).toContain('TXT')
+    })
+
+    it('should remove duplicate extensions', () => {
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf', 'pdf', 'PDF'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const count = (result.current.supportTypesShowNames.match(/PDF/g) || []).length
+      expect(count).toBe(1)
+    })
+  })
+
+  describe('drag and drop handlers', () => {
+    // Helper component that renders with the hook and connects refs
+    const TestDropzone = ({ allowedExtensions, supportBatchUpload = true }: {
+      allowedExtensions: string[]
+      supportBatchUpload?: boolean
+    }) => {
+      const {
+        dropRef,
+        dragRef,
+        dragging,
+      } = useLocalFileUpload({ allowedExtensions, supportBatchUpload })
+
+      return (
+        <div>
+          <div ref={dropRef} data-testid="dropzone">
+            {dragging && <div ref={dragRef} data-testid="drag-overlay" />}
+          </div>
+          <span data-testid="dragging">{String(dragging)}</span>
+        </div>
+      )
+    }
+
+    it('should set dragging true on dragenter', async () => {
+      const { getByTestId } = await act(async () =>
+        render(
+          <ToastContext.Provider value={{ notify: mockNotify, close: mockClose }}>
+            <TestDropzone allowedExtensions={['pdf']} />
+          </ToastContext.Provider>,
+        ),
+      )
+
+      const dropzone = getByTestId('dropzone')
+
+      await act(async () => {
+        const dragEnterEvent = new Event('dragenter', { bubbles: true, cancelable: true })
+        dropzone.dispatchEvent(dragEnterEvent)
+      })
+
+      expect(getByTestId('dragging').textContent).toBe('true')
+    })
+
+    it('should handle dragover event', async () => {
+      const { getByTestId } = await act(async () =>
+        render(
+          <ToastContext.Provider value={{ notify: mockNotify, close: mockClose }}>
+            <TestDropzone allowedExtensions={['pdf']} />
+          </ToastContext.Provider>,
+        ),
+      )
+
+      const dropzone = getByTestId('dropzone')
+
+      await act(async () => {
+        const dragOverEvent = new Event('dragover', { bubbles: true, cancelable: true })
+        dropzone.dispatchEvent(dragOverEvent)
+      })
+
+      // dragover should not throw
+      expect(dropzone).toBeInTheDocument()
+    })
+
+    it('should set dragging false on dragleave from drag overlay', async () => {
+      const { getByTestId, queryByTestId } = await act(async () =>
+        render(
+          <ToastContext.Provider value={{ notify: mockNotify, close: mockClose }}>
+            <TestDropzone allowedExtensions={['pdf']} />
+          </ToastContext.Provider>,
+        ),
+      )
+
+      const dropzone = getByTestId('dropzone')
+
+      // First trigger dragenter to set dragging true
+      await act(async () => {
+        const dragEnterEvent = new Event('dragenter', { bubbles: true, cancelable: true })
+        dropzone.dispatchEvent(dragEnterEvent)
+      })
+
+      expect(getByTestId('dragging').textContent).toBe('true')
+
+      // Now the drag overlay should be rendered
+      const dragOverlay = queryByTestId('drag-overlay')
+      if (dragOverlay) {
+        await act(async () => {
+          const dragLeaveEvent = new Event('dragleave', { bubbles: true, cancelable: true })
+          Object.defineProperty(dragLeaveEvent, 'target', { value: dragOverlay })
+          dropzone.dispatchEvent(dragLeaveEvent)
+        })
+      }
+    })
+
+    it('should handle drop with files', async () => {
+      mockUpload.mockResolvedValue({ id: 'uploaded-id' })
+
+      const { getByTestId } = await act(async () =>
+        render(
+          <ToastContext.Provider value={{ notify: mockNotify, close: mockClose }}>
+            <TestDropzone allowedExtensions={['pdf']} />
+          </ToastContext.Provider>,
+        ),
+      )
+
+      const dropzone = getByTestId('dropzone')
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+
+      await act(async () => {
+        const dropEvent = new Event('drop', { bubbles: true, cancelable: true }) as Event & { dataTransfer: { files: File[] } | null }
+        dropEvent.dataTransfer = { files: [mockFile] }
+        dropzone.dispatchEvent(dropEvent)
+      })
+
+      await waitFor(() => {
+        expect(mockSetLocalFileList).toHaveBeenCalled()
+      })
+    })
+
+    it('should handle drop without dataTransfer', async () => {
+      const { getByTestId } = await act(async () =>
+        render(
+          <ToastContext.Provider value={{ notify: mockNotify, close: mockClose }}>
+            <TestDropzone allowedExtensions={['pdf']} />
+          </ToastContext.Provider>,
+        ),
+      )
+
+      const dropzone = getByTestId('dropzone')
+      mockSetLocalFileList.mockClear()
+
+      await act(async () => {
+        const dropEvent = new Event('drop', { bubbles: true, cancelable: true }) as Event & { dataTransfer: { files: File[] } | null }
+        dropEvent.dataTransfer = null
+        dropzone.dispatchEvent(dropEvent)
+      })
+
+      // Should not upload when no dataTransfer
+      expect(mockSetLocalFileList).not.toHaveBeenCalled()
+    })
+
+    it('should limit to single file on drop when supportBatchUpload is false', async () => {
+      mockUpload.mockResolvedValue({ id: 'uploaded-id' })
+
+      const { getByTestId } = await act(async () =>
+        render(
+          <ToastContext.Provider value={{ notify: mockNotify, close: mockClose }}>
+            <TestDropzone allowedExtensions={['pdf']} supportBatchUpload={false} />
+          </ToastContext.Provider>,
+        ),
+      )
+
+      const dropzone = getByTestId('dropzone')
+      const files = [
+        new File(['content1'], 'test1.pdf', { type: 'application/pdf' }),
+        new File(['content2'], 'test2.pdf', { type: 'application/pdf' }),
+      ]
+
+      await act(async () => {
+        const dropEvent = new Event('drop', { bubbles: true, cancelable: true }) as Event & { dataTransfer: { files: File[] } | null }
+        dropEvent.dataTransfer = { files }
+        dropzone.dispatchEvent(dropEvent)
+      })
+
+      await waitFor(() => {
+        expect(mockSetLocalFileList).toHaveBeenCalled()
+        // Should only have 1 file (limited by supportBatchUpload: false)
+        const callArgs = mockSetLocalFileList.mock.calls[0][0]
+        expect(callArgs.length).toBe(1)
+      })
+    })
+  })
+
+  describe('file upload limit', () => {
+    it('should reject files exceeding total file upload limit', async () => {
+      // Mock store to return existing files
+      const { useDataSourceStoreWithSelector } = vi.mocked(await import('../../store'))
+      const existingFiles: FileItem[] = Array.from({ length: 8 }, (_, i) => ({
+        fileID: `existing-${i}`,
+        file: { name: `existing-${i}.pdf`, size: 1024 } as CustomFile,
+        progress: 100,
+      }))
+      vi.mocked(useDataSourceStoreWithSelector).mockImplementation(selector =>
+        selector({ localFileList: existingFiles } as Parameters<typeof selector>[0]),
+      )
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      // Try to add 5 more files when limit is 10 and we already have 8
+      const files = Array.from({ length: 5 }, (_, i) =>
+        new File(['content'], `new-${i}.pdf`, { type: 'application/pdf' }))
+
+      const event = {
+        target: { files },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      // Should show error about files number limit
+      expect(mockNotify).toHaveBeenCalledWith(
+        expect.objectContaining({ type: 'error' }),
+      )
+
+      // Reset mock for other tests
+      vi.mocked(useDataSourceStoreWithSelector).mockImplementation(selector =>
+        selector({ localFileList: [] as FileItem[] } as Parameters<typeof selector>[0]),
+      )
+    })
+  })
+
+  describe('upload progress tracking', () => {
+    it('should track upload progress', async () => {
+      let progressCallback: ((e: ProgressEvent) => void) | undefined
+
+      mockUpload.mockImplementation(async (options: { onprogress: (e: ProgressEvent) => void }) => {
+        progressCallback = options.onprogress
+        return { id: 'uploaded-id' }
+      })
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+      const event = {
+        target: { files: [mockFile] },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        expect(mockUpload).toHaveBeenCalled()
+      })
+
+      // Simulate progress event
+      if (progressCallback) {
+        act(() => {
+          progressCallback!({
+            lengthComputable: true,
+            loaded: 50,
+            total: 100,
+          } as ProgressEvent)
+        })
+
+        expect(mockSetLocalFileList).toHaveBeenCalled()
+      }
+    })
+
+    it('should not update progress when not lengthComputable', async () => {
+      let progressCallback: ((e: ProgressEvent) => void) | undefined
+      const uploadCallCount = { value: 0 }
+
+      mockUpload.mockImplementation(async (options: { onprogress: (e: ProgressEvent) => void }) => {
+        progressCallback = options.onprogress
+        uploadCallCount.value++
+        return { id: 'uploaded-id' }
+      })
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+      const event = {
+        target: { files: [mockFile] },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      mockSetLocalFileList.mockClear()
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        expect(mockUpload).toHaveBeenCalled()
+      })
+
+      const callsBeforeProgress = mockSetLocalFileList.mock.calls.length
+
+      // Simulate progress event without lengthComputable
+      if (progressCallback) {
+        act(() => {
+          progressCallback!({
+            lengthComputable: false,
+            loaded: 50,
+            total: 100,
+          } as ProgressEvent)
+        })
+
+        // Should not have additional calls
+        expect(mockSetLocalFileList.mock.calls.length).toBe(callsBeforeProgress)
+      }
+    })
+  })
+
+  describe('file progress constants', () => {
+    it('should use PROGRESS_NOT_STARTED for new files', async () => {
+      mockUpload.mockResolvedValue({ id: 'file-id' })
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+      const event = {
+        target: {
+          files: [mockFile],
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        const callArgs = mockSetLocalFileList.mock.calls[0][0]
+        expect(callArgs[0].progress).toBe(PROGRESS_NOT_STARTED)
+      })
+    })
+
+    it('should set PROGRESS_ERROR on upload failure', async () => {
+      mockUpload.mockRejectedValue(new Error('Upload failed'))
+
+      const { result } = renderHook(
+        () => useLocalFileUpload({ allowedExtensions: ['pdf'] }),
+        { wrapper: createWrapper() },
+      )
+
+      const mockFile = new File(['content'], 'test.pdf', { type: 'application/pdf' })
+      const event = {
+        target: {
+          files: [mockFile],
+        },
+      } as unknown as React.ChangeEvent<HTMLInputElement>
+
+      act(() => {
+        result.current.fileChangeHandle(event)
+      })
+
+      await waitFor(() => {
+        const calls = mockSetLocalFileList.mock.calls
+        const lastCall = calls[calls.length - 1][0]
+        expect(lastCall.some((f: FileItem) => f.progress === PROGRESS_ERROR)).toBe(true)
+      })
+    })
+  })
+})
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/hooks/use-local-file-upload.ts b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/hooks/use-local-file-upload.ts
new file mode 100644
index 0000000000..0add8d60d6
--- /dev/null
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/hooks/use-local-file-upload.ts
@@ -0,0 +1,292 @@
+import type { CustomFile as File, FileItem } from '@/models/datasets'
+import { produce } from 'immer'
+import { useCallback, useEffect, useMemo, useRef, useState } from 'react'
+import { useTranslation } from 'react-i18next'
+import { useContext } from 'use-context-selector'
+import { getFileUploadErrorMessage } from '@/app/components/base/file-uploader/utils'
+import { ToastContext } from '@/app/components/base/toast'
+import { IS_CE_EDITION } from '@/config'
+import { useLocale } from '@/context/i18n'
+import { LanguagesSupported } from '@/i18n-config/language'
+import { upload } from '@/service/base'
+import { useFileUploadConfig } from '@/service/use-common'
+import { useDataSourceStore, useDataSourceStoreWithSelector } from '../../store'
+import { PROGRESS_ERROR, PROGRESS_NOT_STARTED } from '../constants'
+
+export type UseLocalFileUploadOptions = {
+  allowedExtensions: string[]
+  supportBatchUpload?: boolean
+}
+
+type FileUploadConfig = {
+  file_size_limit: number
+  batch_count_limit: number
+  file_upload_limit: number
+}
+
+export const useLocalFileUpload = ({
+  allowedExtensions,
+  supportBatchUpload = true,
+}: UseLocalFileUploadOptions) => {
+  const { t } = useTranslation()
+  const { notify } = useContext(ToastContext)
+  const locale = useLocale()
+  const localFileList = useDataSourceStoreWithSelector(state => state.localFileList)
+  const dataSourceStore = useDataSourceStore()
+  const [dragging, setDragging] = useState(false)
+
+  const dropRef = useRef<HTMLDivElement>(null)
+  const dragRef = useRef<HTMLDivElement>(null)
+  const fileUploaderRef = useRef<HTMLInputElement>(null)
+  const fileListRef = useRef<FileItem[]>([])
+
+  const hideUpload = !supportBatchUpload && localFileList.length > 0
+
+  const { data: fileUploadConfigResponse } = useFileUploadConfig()
+
+  const supportTypesShowNames = useMemo(() => {
+    const extensionMap: { [key: string]: string } = {
+      md: 'markdown',
+      pptx: 'pptx',
+      htm: 'html',
+      xlsx: 'xlsx',
+      docx: 'docx',
+    }
+
+    return allowedExtensions
+      .map(item => extensionMap[item] || item)
+      .map(item => item.toLowerCase())
+      .filter((item, index, self) => self.indexOf(item) === index)
+      .map(item => item.toUpperCase())
+      .join(locale !== LanguagesSupported[1] ? ', ' : '、 ')
+  }, [locale, allowedExtensions])
+
+  const acceptTypes = useMemo(
+    () => allowedExtensions.map((ext: string) => `.${ext}`),
+    [allowedExtensions],
+  )
+
+  const fileUploadConfig: FileUploadConfig = useMemo(() => ({
+    file_size_limit: fileUploadConfigResponse?.file_size_limit ?? 15,
+    batch_count_limit: supportBatchUpload ? (fileUploadConfigResponse?.batch_count_limit ?? 5) : 1,
+    file_upload_limit: supportBatchUpload ? (fileUploadConfigResponse?.file_upload_limit ?? 5) : 1,
+  }), [fileUploadConfigResponse, supportBatchUpload])
+
+  const updateFile = useCallback((fileItem: FileItem, progress: number, list: FileItem[]) => {
+    const { setLocalFileList } = dataSourceStore.getState()
+    const newList = produce(list, (draft) => {
+      const targetIndex = draft.findIndex(file => file.fileID === fileItem.fileID)
+      draft[targetIndex] = {
+        ...draft[targetIndex],
+        progress,
+      }
+    })
+    setLocalFileList(newList)
+  }, [dataSourceStore])
+
+  const updateFileList = useCallback((preparedFiles: FileItem[]) => {
+    const { setLocalFileList } = dataSourceStore.getState()
+    setLocalFileList(preparedFiles)
+  }, [dataSourceStore])
+
+  const handlePreview = useCallback((file: File) => {
+    const { setCurrentLocalFile } = dataSourceStore.getState()
+    if (file.id)
+      setCurrentLocalFile(file)
+  }, [dataSourceStore])
+
+  const getFileType = (currentFile: File) => {
+    if (!currentFile)
+      return ''
+
+    const arr = currentFile.name.split('.')
+    return arr[arr.length - 1]
+  }
+
+  const isValid = useCallback((file: File) => {
+    const { size } = file
+    const ext = `.${getFileType(file)}`
+    const isValidType = acceptTypes.includes(ext.toLowerCase())
+    if (!isValidType)
+      notify({ type: 'error', message: t('stepOne.uploader.validation.typeError', { ns: 'datasetCreation' }) })
+
+    const isValidSize = size <= fileUploadConfig.file_size_limit * 1024 * 1024
+    if (!isValidSize)
+      notify({ type: 'error', message: t('stepOne.uploader.validation.size', { ns: 'datasetCreation', size: fileUploadConfig.file_size_limit }) })
+
+    return isValidType && isValidSize
+  }, [notify, t, acceptTypes, fileUploadConfig.file_size_limit])
+
+  type UploadResult = Awaited<ReturnType<typeof upload>>
+
+  const fileUpload = useCallback(async (fileItem: FileItem): Promise<FileItem> => {
+    const formData = new FormData()
+    formData.append('file', fileItem.file)
+    const onProgress = (e: ProgressEvent) => {
+      if (e.lengthComputable) {
+        const percent = Math.floor(e.loaded / e.total * 100)
+        updateFile(fileItem, percent, fileListRef.current)
+      }
+    }
+
+    return upload({
+      xhr: new XMLHttpRequest(),
+      data: formData,
+      onprogress: onProgress,
+    }, false, undefined, '?source=datasets')
+      .then((res: UploadResult) => {
+        const updatedFile = Object.assign({}, fileItem.file, {
+          id: res.id,
+          ...(res as Partial<File>),
+        }) as File
+        const completeFile: FileItem = {
+          fileID: fileItem.fileID,
+          file: updatedFile,
+          progress: PROGRESS_NOT_STARTED,
+        }
+        const index = fileListRef.current.findIndex(item => item.fileID === fileItem.fileID)
+        fileListRef.current[index] = completeFile
+        updateFile(completeFile, 100, fileListRef.current)
+        return Promise.resolve({ ...completeFile })
+      })
+      .catch((e) => {
+        const errorMessage = getFileUploadErrorMessage(e, t('stepOne.uploader.failed', { ns: 'datasetCreation' }), t)
+        notify({ type: 'error', message: errorMessage })
+        updateFile(fileItem, PROGRESS_ERROR, fileListRef.current)
+        return Promise.resolve({ ...fileItem })
+      })
+  }, [fileListRef, notify, updateFile, t])
+
+  const uploadBatchFiles = useCallback((bFiles: FileItem[]) => {
+    bFiles.forEach(bf => (bf.progress = 0))
+    return Promise.all(bFiles.map(fileUpload))
+  }, [fileUpload])
+
+  const uploadMultipleFiles = useCallback(async (files: FileItem[]) => {
+    const batchCountLimit = fileUploadConfig.batch_count_limit
+    const length = files.length
+    let start = 0
+    let end = 0
+
+    while (start < length) {
+      if (start + batchCountLimit > length)
+        end = length
+      else
+        end = start + batchCountLimit
+      const bFiles = files.slice(start, end)
+      await uploadBatchFiles(bFiles)
+      start = end
+    }
+  }, [fileUploadConfig, uploadBatchFiles])
+
+  const initialUpload = useCallback((files: File[]) => {
+    const filesCountLimit = fileUploadConfig.file_upload_limit
+    if (!files.length)
+      return false
+
+    if (files.length + localFileList.length > filesCountLimit && !IS_CE_EDITION) {
+      notify({ type: 'error', message: t('stepOne.uploader.validation.filesNumber', { ns: 'datasetCreation', filesNumber: filesCountLimit }) })
+      return false
+    }
+
+    const preparedFiles = files.map((file, index) => ({
+      fileID: `file${index}-${Date.now()}`,
+      file,
+      progress: PROGRESS_NOT_STARTED,
+    }))
+    const newFiles = [...fileListRef.current, ...preparedFiles]
+    updateFileList(newFiles)
+    fileListRef.current = newFiles
+    uploadMultipleFiles(preparedFiles)
+  }, [fileUploadConfig.file_upload_limit, localFileList.length, updateFileList, uploadMultipleFiles, notify, t])
+
+  const handleDragEnter = useCallback((e: DragEvent) => {
+    e.preventDefault()
+    e.stopPropagation()
+    if (e.target !== dragRef.current)
+      setDragging(true)
+  }, [])
+
+  const handleDragOver = useCallback((e: DragEvent) => {
+    e.preventDefault()
+    e.stopPropagation()
+  }, [])
+
+  const handleDragLeave = useCallback((e: DragEvent) => {
+    e.preventDefault()
+    e.stopPropagation()
+    if (e.target === dragRef.current)
+      setDragging(false)
+  }, [])
+
+  const handleDrop = useCallback((e: DragEvent) => {
+    e.preventDefault()
+    e.stopPropagation()
+    setDragging(false)
+    if (!e.dataTransfer)
+      return
+
+    let files = Array.from(e.dataTransfer.files) as File[]
+    if (!supportBatchUpload)
+      files = files.slice(0, 1)
+
+    const validFiles = files.filter(isValid)
+    initialUpload(validFiles)
+  }, [initialUpload, isValid, supportBatchUpload])
+
+  const selectHandle = useCallback(() => {
+    if (fileUploaderRef.current)
+      fileUploaderRef.current.click()
+  }, [])
+
+  const removeFile = useCallback((fileID: string) => {
+    if (fileUploaderRef.current)
+      fileUploaderRef.current.value = ''
+
+    fileListRef.current = fileListRef.current.filter(item => item.fileID !== fileID)
+    updateFileList([...fileListRef.current])
+  }, [updateFileList])
+
+  const fileChangeHandle = useCallback((e: React.ChangeEvent<HTMLInputElement>) => {
+    let files = Array.from(e.target.files ?? []) as File[]
+    files = files.slice(0, fileUploadConfig.batch_count_limit)
+    initialUpload(files.filter(isValid))
+  }, [isValid, initialUpload, fileUploadConfig.batch_count_limit])
+
+  useEffect(() => {
+    const dropElement = dropRef.current
+    dropElement?.addEventListener('dragenter', handleDragEnter)
+    dropElement?.addEventListener('dragover', handleDragOver)
+    dropElement?.addEventListener('dragleave', handleDragLeave)
+    dropElement?.addEventListener('drop', handleDrop)
+    return () => {
+      dropElement?.removeEventListener('dragenter', handleDragEnter)
+      dropElement?.removeEventListener('dragover', handleDragOver)
+      dropElement?.removeEventListener('dragleave', handleDragLeave)
+      dropElement?.removeEventListener('drop', handleDrop)
+    }
+  }, [handleDragEnter, handleDragOver, handleDragLeave, handleDrop])
+
+  return {
+    // Refs
+    dropRef,
+    dragRef,
+    fileUploaderRef,
+
+    // State
+    dragging,
+    localFileList,
+
+    // Config
+    fileUploadConfig,
+    acceptTypes,
+    supportTypesShowNames,
+    hideUpload,
+
+    // Handlers
+    selectHandle,
+    fileChangeHandle,
+    removeFile,
+    handlePreview,
+  }
+}
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/index.spec.tsx b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/index.spec.tsx
new file mode 100644
index 0000000000..66f13be84f
--- /dev/null
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/index.spec.tsx
@@ -0,0 +1,398 @@
+import type { FileItem } from '@/models/datasets'
+import { render, screen } from '@testing-library/react'
+import { beforeEach, describe, expect, it, vi } from 'vitest'
+import LocalFile from './index'
+
+// Mock the hook
+const mockUseLocalFileUpload = vi.fn()
+vi.mock('./hooks/use-local-file-upload', () => ({
+  useLocalFileUpload: (...args: unknown[]) => mockUseLocalFileUpload(...args),
+}))
+
+// Mock react-i18next for sub-components
+vi.mock('react-i18next', () => ({
+  useTranslation: () => ({
+    t: (key: string) => key,
+  }),
+}))
+
+// Mock theme hook for sub-components
+vi.mock('@/hooks/use-theme', () => ({
+  default: () => ({ theme: 'light' }),
+}))
+
+// Mock theme types
+vi.mock('@/types/app', () => ({
+  Theme: { dark: 'dark', light: 'light' },
+}))
+
+// Mock DocumentFileIcon
+vi.mock('@/app/components/datasets/common/document-file-icon', () => ({
+  default: ({ name }: { name: string }) => <div data-testid="document-icon">{name}</div>,
+}))
+
+// Mock SimplePieChart
+vi.mock('next/dynamic', () => ({
+  default: () => {
+    const Component = ({ percentage }: { percentage: number }) => (
+      <div data-testid="pie-chart">
+        {percentage}
+        %
+      </div>
+    )
+    return Component
+  },
+}))
+
+describe('LocalFile', () => {
+  const mockDropRef = { current: null }
+  const mockDragRef = { current: null }
+  const mockFileUploaderRef = { current: null }
+
+  const defaultHookReturn = {
+    dropRef: mockDropRef,
+    dragRef: mockDragRef,
+    fileUploaderRef: mockFileUploaderRef,
+    dragging: false,
+    localFileList: [] as FileItem[],
+    fileUploadConfig: {
+      file_size_limit: 15,
+      batch_count_limit: 5,
+      file_upload_limit: 10,
+    },
+    acceptTypes: ['.pdf', '.docx'],
+    supportTypesShowNames: 'PDF, DOCX',
+    hideUpload: false,
+    selectHandle: vi.fn(),
+    fileChangeHandle: vi.fn(),
+    removeFile: vi.fn(),
+    handlePreview: vi.fn(),
+  }
+
+  beforeEach(() => {
+    vi.clearAllMocks()
+    mockUseLocalFileUpload.mockReturnValue(defaultHookReturn)
+  })
+
+  describe('rendering', () => {
+    it('should render the component container', () => {
+      const { container } = render(
+        <LocalFile allowedExtensions={['pdf', 'docx']} />,
+      )
+
+      expect(container.firstChild).toHaveClass('flex', 'flex-col')
+    })
+
+    it('should render UploadDropzone when hideUpload is false', () => {
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      const fileInput = document.getElementById('fileUploader')
+      expect(fileInput).toBeInTheDocument()
+    })
+
+    it('should not render UploadDropzone when hideUpload is true', () => {
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        hideUpload: true,
+      })
+
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      const fileInput = document.getElementById('fileUploader')
+      expect(fileInput).not.toBeInTheDocument()
+    })
+  })
+
+  describe('file list rendering', () => {
+    it('should not render file list when empty', () => {
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      expect(screen.queryByTestId('document-icon')).not.toBeInTheDocument()
+    })
+
+    it('should render file list when files exist', () => {
+      const mockFile = {
+        name: 'test.pdf',
+        size: 1024,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      } as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        localFileList: [
+          {
+            fileID: 'file-1',
+            file: mockFile,
+            progress: -1,
+          },
+        ],
+      })
+
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      expect(screen.getByTestId('document-icon')).toBeInTheDocument()
+    })
+
+    it('should render multiple file items', () => {
+      const createMockFile = (name: string) => ({
+        name,
+        size: 1024,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      }) as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        localFileList: [
+          { fileID: 'file-1', file: createMockFile('doc1.pdf'), progress: -1 },
+          { fileID: 'file-2', file: createMockFile('doc2.pdf'), progress: -1 },
+          { fileID: 'file-3', file: createMockFile('doc3.pdf'), progress: -1 },
+        ],
+      })
+
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      const icons = screen.getAllByTestId('document-icon')
+      expect(icons).toHaveLength(3)
+    })
+
+    it('should use correct key for file items', () => {
+      const mockFile = {
+        name: 'test.pdf',
+        size: 1024,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      } as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        localFileList: [
+          { fileID: 'unique-id-123', file: mockFile, progress: -1 },
+        ],
+      })
+
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      // The component should render without errors (key is used internally)
+      expect(screen.getByTestId('document-icon')).toBeInTheDocument()
+    })
+  })
+
+  describe('hook integration', () => {
+    it('should pass allowedExtensions to hook', () => {
+      render(<LocalFile allowedExtensions={['pdf', 'docx', 'txt']} />)
+
+      expect(mockUseLocalFileUpload).toHaveBeenCalledWith({
+        allowedExtensions: ['pdf', 'docx', 'txt'],
+        supportBatchUpload: true,
+      })
+    })
+
+    it('should pass supportBatchUpload true by default', () => {
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      expect(mockUseLocalFileUpload).toHaveBeenCalledWith(
+        expect.objectContaining({ supportBatchUpload: true }),
+      )
+    })
+
+    it('should pass supportBatchUpload false when specified', () => {
+      render(<LocalFile allowedExtensions={['pdf']} supportBatchUpload={false} />)
+
+      expect(mockUseLocalFileUpload).toHaveBeenCalledWith(
+        expect.objectContaining({ supportBatchUpload: false }),
+      )
+    })
+  })
+
+  describe('props passed to UploadDropzone', () => {
+    it('should pass all required props to UploadDropzone', () => {
+      const selectHandle = vi.fn()
+      const fileChangeHandle = vi.fn()
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        selectHandle,
+        fileChangeHandle,
+        supportTypesShowNames: 'PDF, DOCX',
+        acceptTypes: ['.pdf', '.docx'],
+        fileUploadConfig: {
+          file_size_limit: 20,
+          batch_count_limit: 10,
+          file_upload_limit: 50,
+        },
+      })
+
+      render(<LocalFile allowedExtensions={['pdf', 'docx']} supportBatchUpload={true} />)
+
+      // Verify the dropzone is rendered with correct configuration
+      const fileInput = document.getElementById('fileUploader')
+      expect(fileInput).toBeInTheDocument()
+      expect(fileInput).toHaveAttribute('accept', '.pdf,.docx')
+      expect(fileInput).toHaveAttribute('multiple')
+    })
+  })
+
+  describe('props passed to FileListItem', () => {
+    it('should pass correct props to file items', () => {
+      const handlePreview = vi.fn()
+      const removeFile = vi.fn()
+      const mockFile = {
+        name: 'document.pdf',
+        size: 2048,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      } as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        handlePreview,
+        removeFile,
+        localFileList: [
+          { fileID: 'test-id', file: mockFile, progress: 50 },
+        ],
+      })
+
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      expect(screen.getByTestId('document-icon')).toHaveTextContent('document.pdf')
+    })
+  })
+
+  describe('conditional rendering', () => {
+    it('should show both dropzone and file list when files exist and hideUpload is false', () => {
+      const mockFile = {
+        name: 'test.pdf',
+        size: 1024,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      } as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        hideUpload: false,
+        localFileList: [
+          { fileID: 'file-1', file: mockFile, progress: -1 },
+        ],
+      })
+
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      expect(document.getElementById('fileUploader')).toBeInTheDocument()
+      expect(screen.getByTestId('document-icon')).toBeInTheDocument()
+    })
+
+    it('should show only file list when hideUpload is true', () => {
+      const mockFile = {
+        name: 'test.pdf',
+        size: 1024,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      } as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        hideUpload: true,
+        localFileList: [
+          { fileID: 'file-1', file: mockFile, progress: -1 },
+        ],
+      })
+
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      expect(document.getElementById('fileUploader')).not.toBeInTheDocument()
+      expect(screen.getByTestId('document-icon')).toBeInTheDocument()
+    })
+  })
+
+  describe('file list container styling', () => {
+    it('should apply correct container classes for file list', () => {
+      const mockFile = {
+        name: 'test.pdf',
+        size: 1024,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      } as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        localFileList: [
+          { fileID: 'file-1', file: mockFile, progress: -1 },
+        ],
+      })
+
+      const { container } = render(<LocalFile allowedExtensions={['pdf']} />)
+
+      const fileListContainer = container.querySelector('.mt-1.flex.flex-col.gap-y-1')
+      expect(fileListContainer).toBeInTheDocument()
+    })
+  })
+
+  describe('edge cases', () => {
+    it('should handle empty allowedExtensions', () => {
+      render(<LocalFile allowedExtensions={[]} />)
+
+      expect(mockUseLocalFileUpload).toHaveBeenCalledWith({
+        allowedExtensions: [],
+        supportBatchUpload: true,
+      })
+    })
+
+    it('should handle files with same fileID but different index', () => {
+      const mockFile = {
+        name: 'test.pdf',
+        size: 1024,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      } as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        localFileList: [
+          { fileID: 'same-id', file: { ...mockFile, name: 'doc1.pdf' } as File, progress: -1 },
+          { fileID: 'same-id', file: { ...mockFile, name: 'doc2.pdf' } as File, progress: -1 },
+        ],
+      })
+
+      // Should render without key collision errors due to index in key
+      render(<LocalFile allowedExtensions={['pdf']} />)
+
+      const icons = screen.getAllByTestId('document-icon')
+      expect(icons).toHaveLength(2)
+    })
+  })
+
+  describe('component integration', () => {
+    it('should render complete component tree', () => {
+      const mockFile = {
+        name: 'complete-test.pdf',
+        size: 5 * 1024,
+        type: 'application/pdf',
+        lastModified: Date.now(),
+      } as File
+
+      mockUseLocalFileUpload.mockReturnValue({
+        ...defaultHookReturn,
+        hideUpload: false,
+        localFileList: [
+          { fileID: 'file-1', file: mockFile, progress: 50 },
+        ],
+        dragging: false,
+      })
+
+      const { container } = render(
+        <LocalFile allowedExtensions={['pdf', 'docx']} supportBatchUpload={true} />,
+      )
+
+      // Main container
+      expect(container.firstChild).toHaveClass('flex', 'flex-col')
+
+      // Dropzone exists
+      expect(document.getElementById('fileUploader')).toBeInTheDocument()
+
+      // File list exists
+      expect(screen.getByTestId('document-icon')).toBeInTheDocument()
+    })
+  })
+})
diff --git a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/index.tsx b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/index.tsx
index d02d5927f2..cb3632ba9d 100644
--- a/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/index.tsx
+++ b/web/app/components/datasets/documents/create-from-pipeline/data-source/local-file/index.tsx
@@ -1,26 +1,7 @@
 'use client'
-import type { CustomFile as File, FileItem } from '@/models/datasets'
-import { RiDeleteBinLine, RiErrorWarningFill, RiUploadCloud2Line } from '@remixicon/react'
-import { produce } from 'immer'
-import dynamic from 'next/dynamic'
-import * as React from 'react'
-import { useCallback, useEffect, useMemo, useRef, useState } from 'react'
-import { useTranslation } from 'react-i18next'
-import { useContext } from 'use-context-selector'
-import { getFileUploadErrorMessage } from '@/app/components/base/file-uploader/utils'
-import { ToastContext } from '@/app/components/base/toast'
-import DocumentFileIcon from '@/app/components/datasets/common/document-file-icon'
-import { IS_CE_EDITION } from '@/config'
-import { useLocale } from '@/context/i18n'
-import useTheme from '@/hooks/use-theme'
-import { LanguagesSupported } from '@/i18n-config/language'
-import { upload } from '@/service/base'
-import { useFileUploadConfig } from '@/service/use-common'
-import { Theme } from '@/types/app'
-import { cn } from '@/utils/classnames'
-import { useDataSourceStore, useDataSourceStoreWithSelector } from '../store'
-
-const SimplePieChart = dynamic(() => import('@/app/components/base/simple-pie-chart'), { ssr: false })
+import FileListItem from './components/file-list-item'
+import UploadDropzone from './components/upload-dropzone'
+import { useLocalFileUpload } from './hooks/use-local-file-upload'
 
 export type LocalFileProps = {
   allowedExtensions: string[]
@@ -31,345 +12,49 @@ const LocalFile = ({
   allowedExtensions,
   supportBatchUpload = true,
 }: LocalFileProps) => {
-  const { t } = useTranslation()
-  const { notify } = useContext(ToastContext)
-  const locale = useLocale()
-  const localFileList = useDataSourceStoreWithSelector(state => state.localFileList)
-  const dataSourceStore = useDataSourceStore()
-  const [dragging, setDragging] = useState(false)
-
-  const dropRef = useRef<HTMLDivElement>(null)
-  const dragRef = useRef<HTMLDivElement>(null)
-  const fileUploader = useRef<HTMLInputElement>(null)
-  const fileListRef = useRef<FileItem[]>([])
-
-  const hideUpload = !supportBatchUpload && localFileList.length > 0
-
-  const { data: fileUploadConfigResponse } = useFileUploadConfig()
-  const supportTypesShowNames = useMemo(() => {
-    const extensionMap: { [key: string]: string } = {
-      md: 'markdown',
-      pptx: 'pptx',
-      htm: 'html',
-      xlsx: 'xlsx',
-      docx: 'docx',
-    }
-
-    return allowedExtensions
-      .map(item => extensionMap[item] || item) // map to standardized extension
-      .map(item => item.toLowerCase()) // convert to lower case
-      .filter((item, index, self) => self.indexOf(item) === index) // remove duplicates
-      .map(item => item.toUpperCase()) // convert to upper case
-      .join(locale !== LanguagesSupported[1] ? ', ' : '、 ')
-  }, [locale, allowedExtensions])
-  const ACCEPTS = allowedExtensions.map((ext: string) => `.${ext}`)
-  const fileUploadConfig = useMemo(() => ({
-    file_size_limit: fileUploadConfigResponse?.file_size_limit ?? 15,
-    batch_count_limit: supportBatchUpload ? (fileUploadConfigResponse?.batch_count_limit ?? 5) : 1,
-    file_upload_limit: supportBatchUpload ? (fileUploadConfigResponse?.file_upload_limit ?? 5) : 1,
-  }), [fileUploadConfigResponse, supportBatchUpload])
-
-  const updateFile = useCallback((fileItem: FileItem, progress: number, list: FileItem[]) => {
-    const { setLocalFileList } = dataSourceStore.getState()
-    const newList = produce(list, (draft) => {
-      const targetIndex = draft.findIndex(file => file.fileID === fileItem.fileID)
-      draft[targetIndex] = {
-        ...draft[targetIndex],
-        progress,
-      }
-    })
-    setLocalFileList(newList)
-  }, [dataSourceStore])
-
-  const updateFileList = useCallback((preparedFiles: FileItem[]) => {
-    const { setLocalFileList } = dataSourceStore.getState()
-    setLocalFileList(preparedFiles)
-  }, [dataSourceStore])
-
-  const handlePreview = useCallback((file: File) => {
-    const { setCurrentLocalFile } = dataSourceStore.getState()
-    if (file.id)
-      setCurrentLocalFile(file)
-  }, [dataSourceStore])
-
-  // utils
-  const getFileType = (currentFile: File) => {
-    if (!currentFile)
-      return ''
-
-    const arr = currentFile.name.split('.')
-    return arr[arr.length - 1]
-  }
-
-  const getFileSize = (size: number) => {
-    if (size / 1024 < 10)
-      return `${(size / 1024).toFixed(2)}KB`
-
-    return `${(size / 1024 / 1024).toFixed(2)}MB`
-  }
-
-  const isValid = useCallback((file: File) => {
-    const { size } = file
-    const ext = `.${getFileType(file)}`
-    const isValidType = ACCEPTS.includes(ext.toLowerCase())
-    if (!isValidType)
-      notify({ type: 'error', message: t('stepOne.uploader.validation.typeError', { ns: 'datasetCreation' }) })
-
-    const isValidSize = size <= fileUploadConfig.file_size_limit * 1024 * 1024
-    if (!isValidSize)
-      notify({ type: 'error', message: t('stepOne.uploader.validation.size', { ns: 'datasetCreation', size: fileUploadConfig.file_size_limit }) })
-
-    return isValidType && isValidSize
-  }, [notify, t, ACCEPTS, fileUploadConfig.file_size_limit])
-
-  type UploadResult = Awaited<ReturnType<typeof upload>>
-
-  const fileUpload = useCallback(async (fileItem: FileItem): Promise<FileItem> => {
-    const formData = new FormData()
-    formData.append('file', fileItem.file)
-    const onProgress = (e: ProgressEvent) => {
-      if (e.lengthComputable) {
-        const percent = Math.floor(e.loaded / e.total * 100)
-        updateFile(fileItem, percent, fileListRef.current)
-      }
-    }
-
-    return upload({
-      xhr: new XMLHttpRequest(),
-      data: formData,
-      onprogress: onProgress,
-    }, false, undefined, '?source=datasets')
-      .then((res: UploadResult) => {
-        const updatedFile = Object.assign({}, fileItem.file, {
-          id: res.id,
-          ...(res as Partial<File>),
-        }) as File
-        const completeFile: FileItem = {
-          fileID: fileItem.fileID,
-          file: updatedFile,
-          progress: -1,
-        }
-        const index = fileListRef.current.findIndex(item => item.fileID === fileItem.fileID)
-        fileListRef.current[index] = completeFile
-        updateFile(completeFile, 100, fileListRef.current)
-        return Promise.resolve({ ...completeFile })
-      })
-      .catch((e) => {
-        const errorMessage = getFileUploadErrorMessage(e, t('stepOne.uploader.failed', { ns: 'datasetCreation' }), t)
-        notify({ type: 'error', message: errorMessage })
-        updateFile(fileItem, -2, fileListRef.current)
-        return Promise.resolve({ ...fileItem })
-      })
-      .finally()
-  }, [fileListRef, notify, updateFile, t])
-
-  const uploadBatchFiles = useCallback((bFiles: FileItem[]) => {
-    bFiles.forEach(bf => (bf.progress = 0))
-    return Promise.all(bFiles.map(fileUpload))
-  }, [fileUpload])
-
-  const uploadMultipleFiles = useCallback(async (files: FileItem[]) => {
-    const batchCountLimit = fileUploadConfig.batch_count_limit
-    const length = files.length
-    let start = 0
-    let end = 0
-
-    while (start < length) {
-      if (start + batchCountLimit > length)
-        end = length
-      else
-        end = start + batchCountLimit
-      const bFiles = files.slice(start, end)
-      await uploadBatchFiles(bFiles)
-      start = end
-    }
-  }, [fileUploadConfig, uploadBatchFiles])
-
-  const initialUpload = useCallback((files: File[]) => {
-    const filesCountLimit = fileUploadConfig.file_upload_limit
-    if (!files.length)
-      return false
-
-    if (files.length + localFileList.length > filesCountLimit && !IS_CE_EDITION) {
-      notify({ type: 'error', message: t('stepOne.uploader.validation.filesNumber', { ns: 'datasetCreation', filesNumber: filesCountLimit }) })
-      return false
-    }
-
-    const preparedFiles = files.map((file, index) => ({
-      fileID: `file${index}-${Date.now()}`,
-      file,
-      progress: -1,
-    }))
-    const newFiles = [...fileListRef.current, ...preparedFiles]
-    updateFileList(newFiles)
-    fileListRef.current = newFiles
-    uploadMultipleFiles(preparedFiles)
-  }, [fileUploadConfig.file_upload_limit, localFileList.length, updateFileList, uploadMultipleFiles, notify, t])
-
-  const handleDragEnter = (e: DragEvent) => {
-    e.preventDefault()
-    e.stopPropagation()
-    if (e.target !== dragRef.current)
-      setDragging(true)
-  }
-  const handleDragOver = (e: DragEvent) => {
-    e.preventDefault()
-    e.stopPropagation()
-  }
-  const handleDragLeave = (e: DragEvent) => {
-    e.preventDefault()
-    e.stopPropagation()
-    if (e.target === dragRef.current)
-      setDragging(false)
-  }
-
-  const handleDrop = useCallback((e: DragEvent) => {
-    e.preventDefault()
-    e.stopPropagation()
-    setDragging(false)
-    if (!e.dataTransfer)
-      return
-
-    let files = Array.from(e.dataTransfer.files) as File[]
-    if (!supportBatchUpload)
-      files = files.slice(0, 1)
-
-    const validFiles = files.filter(isValid)
-    initialUpload(validFiles)
-  }, [initialUpload, isValid, supportBatchUpload])
-
-  const selectHandle = useCallback(() => {
-    if (fileUploader.current)
-      fileUploader.current.click()
-  }, [])
-
-  const removeFile = (fileID: string) => {
-    if (fileUploader.current)
-      fileUploader.current.value = ''
-
-    fileListRef.current = fileListRef.current.filter(item => item.fileID !== fileID)
-    updateFileList([...fileListRef.current])
-  }
-  const fileChangeHandle = useCallback((e: React.ChangeEvent<HTMLInputElement>) => {
-    let files = Array.from(e.target.files ?? []) as File[]
-    files = files.slice(0, fileUploadConfig.batch_count_limit)
-    initialUpload(files.filter(isValid))
-  }, [isValid, initialUpload, fileUploadConfig.batch_count_limit])
-
-  const { theme } = useTheme()
-  const chartColor = useMemo(() => theme === Theme.dark ? '#5289ff' : '#296dff', [theme])
-
-  useEffect(() => {
-    const dropElement = dropRef.current
-    dropElement?.addEventListener('dragenter', handleDragEnter)
-    dropElement?.addEventListener('dragover', handleDragOver)
-    dropElement?.addEventListener('dragleave', handleDragLeave)
-    dropElement?.addEventListener('drop', handleDrop)
-    return () => {
-      dropElement?.removeEventListener('dragenter', handleDragEnter)
-      dropElement?.removeEventListener('dragover', handleDragOver)
-      dropElement?.removeEventListener('dragleave', handleDragLeave)
-      dropElement?.removeEventListener('drop', handleDrop)
-    }
-  }, [handleDrop])
+  const {
+    dropRef,
+    dragRef,
+    fileUploaderRef,
+    dragging,
+    localFileList,
+    fileUploadConfig,
+    acceptTypes,
+    supportTypesShowNames,
+    hideUpload,
+    selectHandle,
+    fileChangeHandle,
+    removeFile,
+    handlePreview,
+  } = useLocalFileUpload({ allowedExtensions, supportBatchUpload })
 
   return (
     <div className="flex flex-col">
       {!hideUpload && (
-        <input
-          ref={fileUploader}
-          id="fileUploader"
-          className="hidden"
-          type="file"
-          multiple={supportBatchUpload}
-          accept={ACCEPTS.join(',')}
-          onChange={fileChangeHandle}
+        <UploadDropzone
+          dropRef={dropRef}
+          dragRef={dragRef}
+          fileUploaderRef={fileUploaderRef}
+          dragging={dragging}
+          supportBatchUpload={supportBatchUpload}
+          supportTypesShowNames={supportTypesShowNames}
+          fileUploadConfig={fileUploadConfig}
+          acceptTypes={acceptTypes}
+          onSelectFile={selectHandle}
+          onFileChange={fileChangeHandle}
+          allowedExtensions={allowedExtensions}
         />
       )}
-      {!hideUpload && (
-        <div
-          ref={dropRef}
-          className={cn(
-            'relative box-border flex min-h-20 flex-col items-center justify-center gap-1 rounded-xl border border-dashed border-components-dropzone-border bg-components-dropzone-bg px-4 py-3 text-xs leading-4 text-text-tertiary',
-            dragging && 'border-components-dropzone-border-accent bg-components-dropzone-bg-accent',
-          )}
-        >
-          <div className="flex min-h-5 items-center justify-center text-sm leading-4 text-text-secondary">
-            <RiUploadCloud2Line className="mr-2 size-5" />
-
-            <span>
-              {supportBatchUpload ? t('stepOne.uploader.button', { ns: 'datasetCreation' }) : t('stepOne.uploader.buttonSingleFile', { ns: 'datasetCreation' })}
-              {allowedExtensions.length > 0 && (
-                <label className="ml-1 cursor-pointer text-text-accent" onClick={selectHandle}>{t('stepOne.uploader.browse', { ns: 'datasetCreation' })}</label>
-              )}
-            </span>
-          </div>
-          <div>
-            {t('stepOne.uploader.tip', {
-              ns: 'datasetCreation',
-              size: fileUploadConfig.file_size_limit,
-              supportTypes: supportTypesShowNames,
-              batchCount: fileUploadConfig.batch_count_limit,
-              totalCount: fileUploadConfig.file_upload_limit,
-            })}
-          </div>
-          {dragging && <div ref={dragRef} className="absolute left-0 top-0 h-full w-full" />}
-        </div>
-      )}
       {localFileList.length > 0 && (
         <div className="mt-1 flex flex-col gap-y-1">
-          {localFileList.map((fileItem, index) => {
-            const isUploading = fileItem.progress >= 0 && fileItem.progress < 100
-            const isError = fileItem.progress === -2
-            return (
-              <div
-                key={`${fileItem.fileID}-${index}`}
-                onClick={handlePreview.bind(null, fileItem.file)}
-                className={cn(
-                  'flex h-12 items-center rounded-lg border border-components-panel-border bg-components-panel-on-panel-item-bg shadow-xs shadow-shadow-shadow-4',
-                  isError && 'border-state-destructive-border bg-state-destructive-hover',
-                )}
-              >
-                <div className="flex w-12 shrink-0 items-center justify-center">
-                  <DocumentFileIcon
-                    size="lg"
-                    className="shrink-0"
-                    name={fileItem.file.name}
-                    extension={getFileType(fileItem.file)}
-                  />
-                </div>
-                <div className="flex shrink grow flex-col gap-0.5">
-                  <div className="flex w-full">
-                    <div className="w-0 grow truncate text-xs text-text-secondary">{fileItem.file.name}</div>
-                  </div>
-                  <div className="w-full truncate text-2xs leading-3 text-text-tertiary">
-                    <span className="uppercase">{getFileType(fileItem.file)}</span>
-                    <span className="px-1 text-text-quaternary">·</span>
-                    <span>{getFileSize(fileItem.file.size)}</span>
-                  </div>
-                </div>
-                <div className="flex w-16 shrink-0 items-center justify-end gap-1 pr-3">
-                  {isUploading && (
-                    <SimplePieChart percentage={fileItem.progress} stroke={chartColor} fill={chartColor} animationDuration={0} />
-                  )}
-                  {
-                    isError && (
-                      <RiErrorWarningFill className="size-4 text-text-destructive" />
-                    )
-                  }
-                  <span
-                    className="flex h-6 w-6 cursor-pointer items-center justify-center"
-                    onClick={(e) => {
-                      e.stopPropagation()
-                      removeFile(fileItem.fileID)
-                    }}
-                  >
-                    <RiDeleteBinLine className="size-4 text-text-tertiary" />
-                  </span>
-                </div>
-              </div>
-            )
-          })}
+          {localFileList.map((fileItem, index) => (
+            <FileListItem
+              key={`${fileItem.fileID}-${index}`}
+              fileItem={fileItem}
+              onPreview={handlePreview}
+              onRemove={removeFile}
+            />
+          ))}
         </div>
       )}
     </div>