diff --git a/.github/dependabot.yml b/.github/dependabot.yml
index 949bd28a37..e05c03f842 100644
--- a/.github/dependabot.yml
+++ b/.github/dependabot.yml
@@ -3,26 +3,88 @@ updates:
   - package-ecosystem: "gomod"
     directory: "/"
     schedule:
-      interval: "weekly"
-      day: "saturday"
-      time: "04:20"
+      interval: "monthly"
+      day: "1"
+      time: "01:00"
       timezone: "America/New_York"
-    open-pull-requests-limit: 3
+    open-pull-requests-limit: 1
+    groups:
+      all-dependencies:
+        patterns:
+          - "*"
 
   - package-ecosystem: "github-actions"
     directory: "/"
     schedule:
       interval: "monthly"
-      day: "saturday"
-      time: "04:20"
+      day: "1"
+      time: "02:00"
       timezone: "America/New_York"
     open-pull-requests-limit: 1
 
   - package-ecosystem: "npm"
     directory: "/"
     schedule:
-      interval: "weekly"
-      day: "saturday"
-      time: "04:20"
+      interval: "monthly"
+      day: "1"
+      time: "03:00"
       timezone: "America/New_York"
-    open-pull-requests-limit: 3
+    open-pull-requests-limit: 1
+    groups:
+      balance-monitor:
+        patterns:
+          - "balance-monitor/**"
+      eventindexer:
+        patterns:
+          - "eventindexer/**"
+      monitors:
+        patterns:
+          - "monitors/**"
+      supplementary-contracts:
+        patterns:
+          - "supplementary-contracts/**"
+      blobstorage:
+        patterns:
+          - "blobstorage/**"
+      fork-diff:
+        patterns:
+          - "fork-diff/**"
+      nfts:
+        patterns:
+          - "nfts/**"
+      taiko-client:
+        patterns:
+          - "taiko-client/**"
+      branding:
+        patterns:
+          - "branding/**"
+      geth-rpc-gateway:
+        patterns:
+          - "geth-rpc-gateway/**"
+      protocol:
+        patterns:
+          - "protocol/**"
+      taikoon-ui:
+        patterns:
+          - "taikoon-ui/**"
+      bridge-ui:
+        patterns:
+          - "bridge-ui/**"
+      guardian-prover-health-check:
+        patterns:
+          - "guardian-prover-health-check/**"
+      guardian-prover-health-check-ui:
+        patterns:
+          - "guardian-prover-health-check-ui/**"
+      relayer:
+        patterns:
+          - "relayer/**"
+      ui-lib:
+        patterns:
+          - "ui-lib/**"
+      docs-site:
+        patterns:
+          - "docs-site/**"
+      snaefell-ui:
+        patterns:
+          - "snaefell-ui/**"
diff --git a/.github/workflows/close-old-dependency-prs.yml b/.github/workflows/close-old-dependency-prs.yml
new file mode 100644
index 0000000000..c1bc1d3d29
--- /dev/null
+++ b/.github/workflows/close-old-dependency-prs.yml
@@ -0,0 +1,39 @@
+name: Close Old Dependabot PRs
+
+on:
+  pull_request:
+    types:
+      - opened
+
+jobs:
+  close_old_dependabot_prs:
+    runs-on: [arc-runner-set]
+
+    steps:
+      - name: Checkout Repository
+        uses: actions/checkout@v3
+
+      - name: Close Old Dependabot PRs by Ecosystem and Directory
+        env:
+          NEW_PR_TITLE: ${{ github.event.pull_request.title }}
+          NEW_PR_BRANCH: ${{ github.event.pull_request.head.ref }}
+        run: |
+          REPO="${{ github.repository }}"
+          NEW_BRANCH_PREFIX=$(echo "$NEW_PR_BRANCH" | awk -F'/' '{print $1"/"$2"/"$3}') # Extract prefix: dependabot/npm_and_yarn/<directory>
+
+          echo "New PR Branch Prefix: $NEW_BRANCH_PREFIX"
+
+          # Fetch all open Dependabot PRs
+          gh pr list --repo "$REPO" --state open --json number,title,headRef | jq -c '.[]' | while read -r pr; do
+              PR_NUMBER=$(echo "$pr" | jq -r '.number')
+              PR_TITLE=$(echo "$pr" | jq -r '.title')
+              PR_BRANCH=$(echo "$pr" | jq -r '.headRef')
+
+              # Match PRs in the same directory and ecosystem
+              PR_BRANCH_PREFIX=$(echo "$PR_BRANCH" | awk -F'/' '{print $1"/"$2"/"$3}')
+
+              if [[ "$PR_BRANCH_PREFIX" == "$NEW_BRANCH_PREFIX" && "$PR_TITLE" != "$NEW_PR_TITLE" ]]; then
+                  echo "Closing old PR #$PR_NUMBER: $PR_TITLE"
+                  gh pr close "$PR_NUMBER" --repo "$REPO" --delete-branch
+              fi
+          done