diff --git a/examples/web-component-ext/README.md b/examples/web-component-ext/README.md
new file mode 100644
index 0000000000..326973e8a5
--- /dev/null
+++ b/examples/web-component-ext/README.md
@@ -0,0 +1,47 @@
+# Set Up Your Custom Busola Extension
+
+This example contains a basic custom extension, that queries all deployments corresponding to a selected namespace of your cluster, and additionally retrieves the current weather data for Munich, Germany from an external weather API.
+
+To set up and deploy your own custom Busola extension, follow these steps.
+
+### 1. Adjust Static HTML Content
+
+Edit the `ui.html` file to define the static HTML content for your custom extension.
+
+---
+
+### 2. Configure Dynamic Components
+
+Set up dynamic or behavioral components by modifying the custom element defined in the `script.js` file.
+
+- **Accessing Kubernetes Resources**: Use the `fetchWrapper` function to interact with cluster resources through the Kubernetes API.
+
+- **Making External API Requests**: Use the `proxyFetch` function to handle requests to external APIs that are subject to CORS regulations.
+
+---
+
+### 3. Define Extension Metadata
+
+Update the `general.yaml` file to define metadata for your custom extension.
+
+#### ⚠️ Important:
+
+Ensure that the `general.customElement` property matches the name of the custom element defined in `script.js`. The script is loaded only once, and this property is used to determine whether the custom element is already defined.
+
+---
+
+### 4. Deploy Your Extension
+
+Run `./deploy.sh` to create a ConfigMap and deploy it to your cluster
+
+Alternatively, you can use the following command:
+
+```bash
+kubectl kustomize . | kubectl apply -n kyma-system -f -
+```
+
+---
+
+### 5. Test Your Changes Locally
+
+Run `npm start` to start the development server.
diff --git a/examples/web-component-ext/deploy.sh b/examples/web-component-ext/deploy.sh
new file mode 100755
index 0000000000..8861b96b68
--- /dev/null
+++ b/examples/web-component-ext/deploy.sh
@@ -0,0 +1,4 @@
+#!/bin/bash
+
+kubectl kustomize . > ./custom-ui.yaml
+kubectl apply -f ./custom-ui.yaml -n kyma-system
diff --git a/examples/web-component-ext/general.yaml b/examples/web-component-ext/general.yaml
new file mode 100644
index 0000000000..fce5e5daeb
--- /dev/null
+++ b/examples/web-component-ext/general.yaml
@@ -0,0 +1,10 @@
+resource:
+  kind: Secret
+  version: v1
+urlPath: custom-busola-extension-example
+category: Kyma
+name: Custom busola extension example
+scope: cluster
+customElement: my-custom-element
+description: >-
+  Custom busola extension example
diff --git a/examples/web-component-ext/kustomization.yaml b/examples/web-component-ext/kustomization.yaml
new file mode 100644
index 0000000000..331b64b818
--- /dev/null
+++ b/examples/web-component-ext/kustomization.yaml
@@ -0,0 +1,11 @@
+configMapGenerator:
+  - name: custom-ui
+    files:
+      - customHtml=ui.html
+      - customScript=script.js
+      - general=general.yaml
+    options:
+      disableNameSuffixHash: true
+      labels:
+        busola.io/extension: 'resource'
+        busola.io/extension-version: '0.5'
diff --git a/examples/web-component-ext/script.js b/examples/web-component-ext/script.js
new file mode 100644
index 0000000000..bc3c6bd601
--- /dev/null
+++ b/examples/web-component-ext/script.js
@@ -0,0 +1,220 @@
+function fetchWrapper(url, options = {}) {
+  if (window.extensionProps?.kymaFetchFn) {
+    return window.extensionProps.kymaFetchFn(url, options);
+  }
+  return fetch(url, options);
+}
+
+function proxyFetch(url, options = {}) {
+  const baseUrl = window.location.hostname.startsWith('localhost')
+    ? 'http://localhost:3001/proxy'
+    : '/proxy';
+  const encodedUrl = encodeURIComponent(url);
+  const proxyUrl = `${baseUrl}?url=${encodedUrl}`;
+  return fetch(proxyUrl, options);
+}
+
+class MyCustomElement extends HTMLElement {
+  connectedCallback() {
+    const shadow = this.attachShadow({ mode: 'open' });
+
+    // Add basic styling
+    const style = document.createElement('style');
+    style.textContent = `
+      .container {
+        padding: 1rem;lu
+      }
+      .deployments-list {
+        margin-top: 1rem;
+      }
+      .deployment-item {
+        padding: 0.5rem;
+        margin: 0.5rem 0;
+        background: #f5f5f5;
+        border-radius: 4px;
+      }
+      .weather-container {
+        margin-top: 2rem;
+        padding: 1rem;
+        background: #e0f7fa;
+        border-radius: 8px;
+      }
+      .weather-item {
+        padding: 0.5rem 0;
+        margin: 0.5rem 0;
+        font-size: 1rem;
+      }
+    `;
+    shadow.appendChild(style);
+
+    // Create container
+    const container = document.createElement('div');
+    container.className = 'container';
+
+    // Create namespace dropdown
+    const namespaceSelect = document.createElement('ui5-select');
+    namespaceSelect.id = 'namespaceSelect';
+    container.appendChild(namespaceSelect);
+
+    // Create deployments container
+    const deploymentsList = document.createElement('div');
+    deploymentsList.className = 'deployments-list';
+    container.appendChild(deploymentsList);
+
+    // Create weather container
+    const weatherContainer = document.createElement('div');
+    weatherContainer.className = 'weather-container';
+    weatherContainer.id = 'weatherContainer';
+    container.appendChild(weatherContainer);
+
+    shadow.appendChild(container);
+
+    // Load initial data
+    this.loadData(namespaceSelect, deploymentsList);
+
+    // Add change listener
+    namespaceSelect.addEventListener('change', () => {
+      this.updateDeploymentsList(namespaceSelect.value, deploymentsList);
+    });
+
+    // Fetch and update weather data
+    fetchMunichWeatherData().then(weatherData => {
+      this.updateWeatherUI(weatherData, weatherContainer);
+    });
+  }
+
+  async loadData(namespaceSelect, deploymentsList) {
+    try {
+      // Get namespaces
+      const namespaces = await getNamespaces();
+
+      // Populate namespace dropdown
+      namespaces.forEach(namespace => {
+        const option = document.createElement('ui5-option');
+        option.value = namespace.metadata.name;
+        option.innerHTML = namespace.metadata.name;
+        namespaceSelect.appendChild(option);
+      });
+
+      // Load deployments for first namespace
+      if (namespaces.length > 0) {
+        this.updateDeploymentsList(
+          namespaces[0].metadata.name,
+          deploymentsList,
+        );
+      }
+    } catch (error) {
+      console.error('Failed to load data:', error);
+    }
+  }
+
+  async updateDeploymentsList(namespace, deploymentsList) {
+    try {
+      const deployments = await getDeployments(namespace);
+
+      // Clear current list
+      deploymentsList.innerHTML = '';
+
+      // Add deployment to list
+      deployments.forEach(deployment => {
+        const deploymentItem = document.createElement('div');
+        deploymentItem.className = 'deployment-item';
+        deploymentItem.innerHTML = `
+          <div><strong>Name:</strong> ${deployment.metadata.name}</div>
+        `;
+        deploymentsList.appendChild(deploymentItem);
+      });
+
+      // Show message if no deployments
+      if (deployments.length === 0) {
+        const messageStrip = document.createElement('ui5-message-strip');
+        messageStrip.innerHTML = 'No deployments found in this namespace';
+
+        deploymentsList.innerHTML = messageStrip.outerHTML;
+      }
+    } catch (error) {
+      console.error('Failed to update deployments:', error);
+      deploymentsList.innerHTML = '<div>Error loading deployments</div>';
+    }
+  }
+
+  async updateWeatherUI(weatherData, weatherContainer) {
+    const { temperature, condition } = weatherData;
+    weatherContainer.innerHTML = `
+      <ui5-title level="H4">Current weather in Munich:</ui5-title>
+      <div class="weather-item"><strong>Temperature:</strong> ${temperature}°C</div>
+      <div class="weather-item"><strong>Condition:</strong> ${condition}</div>
+    `;
+  }
+}
+
+async function getNamespaces() {
+  const resp = await fetchWrapper('/api/v1/namespaces');
+  const data = await resp.json();
+  return data.items;
+}
+
+async function getDeployments(namespace) {
+  const resp = await fetchWrapper(
+    `/apis/apps/v1/namespaces/${namespace}/deployments`,
+  );
+  const data = await resp.json();
+  return data.items;
+}
+
+async function fetchMunichWeatherData() {
+  const latitude = 48.1351;
+  const longitude = 11.582;
+  const url = `https://api.open-meteo.com/v1/forecast?latitude=${latitude}&longitude=${longitude}&current_weather=true`;
+
+  const response = await proxyFetch(url);
+  if (!response.ok) {
+    console.error(`Error fetching weather: ${response.status}`);
+    return;
+  }
+  const data = await response.json();
+
+  const currentWeather = data.current_weather;
+  const temperature = currentWeather.temperature;
+  const weatherCode = currentWeather.weathercode;
+
+  const weatherConditions = {
+    0: 'Clear sky',
+    1: 'Mainly clear',
+    2: 'Partly cloudy',
+    3: 'Overcast',
+    45: 'Fog',
+    48: 'Depositing rime fog',
+    51: 'Light drizzle',
+    53: 'Moderate drizzle',
+    55: 'Dense drizzle',
+    56: 'Light freezing drizzle',
+    57: 'Dense freezing drizzle',
+    61: 'Slight rain',
+    63: 'Moderate rain',
+    65: 'Heavy rain',
+    66: 'Light freezing rain',
+    67: 'Heavy freezing rain',
+    71: 'Slight snow fall',
+    73: 'Moderate snow fall',
+    75: 'Heavy snow fall',
+    77: 'Snow grains',
+    80: 'Slight rain showers',
+    81: 'Moderate rain showers',
+    82: 'Violent rain showers',
+    85: 'Slight snow showers',
+    86: 'Heavy snow showers',
+    95: 'Thunderstorm',
+    96: 'Thunderstorm with slight hail',
+    99: 'Thunderstorm with heavy hail',
+  };
+
+  const condition =
+    weatherConditions[weatherCode] || 'Unknown weather condition';
+
+  return { temperature, condition };
+}
+
+if (!customElements.get('my-custom-element')) {
+  customElements.define('my-custom-element', MyCustomElement);
+}
diff --git a/examples/web-component-ext/ui.html b/examples/web-component-ext/ui.html
new file mode 100644
index 0000000000..7f2d43e838
--- /dev/null
+++ b/examples/web-component-ext/ui.html
@@ -0,0 +1,6 @@
+<div>
+  <ui5-panel header-text="Custom busola extension example">
+    <ui5-title level="H4">Deployments in Namespace</ui5-title>
+    <my-custom-element></my-custom-element>
+  </ui5-panel>
+</div>
diff --git a/src/components/Extensibility/ExtensibilityList.js b/src/components/Extensibility/ExtensibilityList.js
index 6de33f52eb..34141a1ea6 100644
--- a/src/components/Extensibility/ExtensibilityList.js
+++ b/src/components/Extensibility/ExtensibilityList.js
@@ -24,6 +24,8 @@ import { Widget } from './components/Widget';
 import { DataSourcesContextProvider } from './contexts/DataSources';
 import { useJsonata } from './hooks/useJsonata';
 import { useFeature } from 'hooks/useFeature';
+import { createPortal } from 'react-dom';
+import YamlUploadDialog from 'resources/Namespaces/YamlUpload/YamlUploadDialog';
 
 export const ExtensibilityListCore = ({
   resMetaData,
@@ -182,9 +184,12 @@ const ExtensibilityList = ({ overrideResMetadata, ...props }) => {
       <DataSourcesContextProvider dataSources={resMetaData?.dataSources || {}}>
         <ExtensibilityErrBoundary key={urlPath}>
           {isExtensibilityCustomComponentsEnabled && resMetaData.customHtml ? (
-            <div
-              dangerouslySetInnerHTML={{ __html: resMetaData.customHtml }}
-            ></div>
+            <>
+              <div
+                dangerouslySetInnerHTML={{ __html: resMetaData.customHtml }}
+              ></div>
+              {createPortal(<YamlUploadDialog />, document.body)}
+            </>
           ) : (
             <ExtensibilityListCore resMetaData={resMetaData} {...props} />
           )}