diff --git a/src/app/shared/blocks-list/blocks-list.css b/src/app/shared/blocks-list/blocks-list.css
index 773c7cb..56156db 100644
--- a/src/app/shared/blocks-list/blocks-list.css
+++ b/src/app/shared/blocks-list/blocks-list.css
@@ -185,50 +185,42 @@
   cursor: text;
 }
 
-.blocks-list-kinds {
-  display: flex;
-  flex-wrap: wrap;
-  gap: 6px;
-  padding: 0 2px 8px;
-}
-
-.blocks-list-kind-chip {
+.blocks-list-filter-btn {
+  position: relative;
   display: inline-flex;
   align-items: center;
-  gap: 4px;
-  padding: 2px 8px;
-  border: 1px solid #cbd5e1;
-  border-radius: 999px;
-  background: #ffffff;
-  color: #334155;
-  font-size: 11px;
-  font-weight: 600;
-  cursor: pointer;
-}
-
-.blocks-list-kind-chip:hover {
-  border-color: #94a3b8;
-}
-
-.blocks-list-kind-chip--on {
-  border-color: #2563eb;
-  background: #eff6ff;
-  color: #1d4ed8;
-}
-
-.blocks-list-kind-chip .blocks-list-card-kind {
-  font-size: 13px;
-  width: 13px;
-  height: 13px;
-  line-height: 13px;
-}
-
-.blocks-list-kind-clear {
+  justify-content: center;
+  width: 32px;
+  height: 32px;
+  margin-right: 4px;
   border: none;
-  background: none;
+  border-radius: 8px;
+  background: transparent;
   color: #64748b;
-  font-size: 11px;
-  font-weight: 600;
   cursor: pointer;
-  text-decoration: underline;
+}
+
+.blocks-list-filter-btn:hover {
+  background: #f1f5f9;
+}
+
+.blocks-list-filter-btn--on {
+  color: #1d4ed8;
+  background: #eff6ff;
+}
+
+.blocks-list-filter-count {
+  position: absolute;
+  top: 1px;
+  right: 1px;
+  min-width: 14px;
+  height: 14px;
+  padding: 0 3px;
+  border-radius: 999px;
+  background: #2563eb;
+  color: #ffffff;
+  font-size: 9px;
+  font-weight: 700;
+  line-height: 14px;
+  text-align: center;
 }
diff --git a/src/app/shared/blocks-list/blocks-list.html b/src/app/shared/blocks-list/blocks-list.html
index ccaa462..e94ef06 100644
--- a/src/app/shared/blocks-list/blocks-list.html
+++ b/src/app/shared/blocks-list/blocks-list.html
@@ -15,28 +15,44 @@
       <mat-label>Search blocks</mat-label>
       <mat-icon matPrefix fontIcon="search"></mat-icon>
       <input matInput placeholder="Search blocks..." #searchInput [value]="searchTerm()" (input)="searchTerm.set(searchInput.value)" />
+      @if (availableKinds().length > 1) {
+      <button
+        matSuffix
+        type="button"
+        class="blocks-list-filter-btn"
+        [class.blocks-list-filter-btn--on]="selectedKinds().size > 0"
+        [matMenuTriggerFor]="kindMenu"
+        [matTooltip]="selectedKinds().size ? 'Showing: ' + selectedKindLabels() : 'Filter by kind'"
+        aria-label="Filter blocks by kind">
+        <mat-icon fontIcon="filter_list"></mat-icon>
+        @if (selectedKinds().size > 0) {
+        <span class="blocks-list-filter-count">{{ selectedKinds().size }}</span>
+        }
+      </button>
+      }
     </mat-form-field>
+    <mat-menu #kindMenu="matMenu" class="blocks-list-kind-menu">
+      @for (kind of availableKinds(); track kind.label) {
+      <button
+        mat-menu-item
+        type="button"
+        role="menuitemcheckbox"
+        [attr.aria-checked]="selectedKinds().has(kind.label)"
+        (click)="$event.stopPropagation(); toggleKind(kind.label)">
+        <mat-icon [fontIcon]="selectedKinds().has(kind.label) ? 'check_box' : 'check_box_outline_blank'"></mat-icon>
+        <mat-icon [class]="'blocks-list-card-kind blocks-list-card-kind--' + kind.modifier" [fontIcon]="kind.icon"></mat-icon>
+        <span>{{ kind.label }}</span>
+      </button>
+      }
+      @if (selectedKinds().size > 0) {
+      <button mat-menu-item type="button" (click)="clearKinds()">
+        <mat-icon fontIcon="close"></mat-icon>
+        <span>Show every kind</span>
+      </button>
+      }
+    </mat-menu>
   </div>
 
-  @if (availableKinds().length > 1) {
-  <div class="blocks-list-kinds" role="group" aria-label="Filter blocks by kind">
-    @for (kind of availableKinds(); track kind.label) {
-    <button
-      type="button"
-      class="blocks-list-kind-chip"
-      [class.blocks-list-kind-chip--on]="selectedKinds().has(kind.label)"
-      [attr.aria-pressed]="selectedKinds().has(kind.label)"
-      (click)="toggleKind(kind.label)">
-      <mat-icon [class]="'blocks-list-card-kind blocks-list-card-kind--' + kind.modifier" [fontIcon]="kind.icon"></mat-icon>
-      <span>{{ kind.label }}</span>
-    </button>
-    }
-    @if (selectedKinds().size > 0) {
-    <button type="button" class="blocks-list-kind-clear" (click)="clearKinds()">Clear</button>
-    }
-  </div>
-  }
-
   @if (filteredBlocks().length === 0) {
   <div class="blocks-list-empty">
     No blocks found
diff --git a/src/app/shared/blocks-list/blocks-list.ts b/src/app/shared/blocks-list/blocks-list.ts
index 70e2316..c5627f1 100644
--- a/src/app/shared/blocks-list/blocks-list.ts
+++ b/src/app/shared/blocks-list/blocks-list.ts
@@ -10,6 +10,7 @@ import { MatCardModule } from '@angular/material/card';
 import { MatFormFieldModule } from '@angular/material/form-field';
 import { MatIconModule } from '@angular/material/icon';
 import { MatInputModule } from '@angular/material/input';
+import { MatMenuModule } from '@angular/material/menu';
 import { MatProgressSpinnerModule } from '@angular/material/progress-spinner';
 import { MatTooltipModule } from '@angular/material/tooltip';
 import { BLOCK_TYPE_DRAG_MIME } from './block-drag';
@@ -28,7 +29,7 @@ export type BlockKind = { icon: string; label: string; modifier: string };
 export function blockKind(block: Pick<BlockType, 'userInteractive' | 'capabilities'>): BlockKind {
   const capabilities = block.capabilities;
   const decides = capabilities?.visualRole === 'DECISION' || capabilities?.routesExclusively === true;
-  if (capabilities?.visualRole === 'RESOURCE') return { icon: 'database', label: 'Resource', modifier: 'resource' };
+  if (capabilities?.visualRole === 'RESOURCE') return { icon: 'storage', label: 'Resource', modifier: 'resource' };
   if (block.userInteractive) {
     return decides
       ? { icon: 'touch_app', label: 'Human decision', modifier: 'interactive' }
@@ -42,7 +43,7 @@ export function blockKind(block: Pick<BlockType, 'userInteractive' | 'capabiliti
 
 @Component({
   selector: 'app-blocks-list',
-  imports: [MatCardModule, MatFormFieldModule, MatIconModule, MatInputModule, MatProgressSpinnerModule, MatTooltipModule],
+  imports: [MatCardModule, MatFormFieldModule, MatIconModule, MatInputModule, MatMenuModule, MatProgressSpinnerModule, MatTooltipModule],
   templateUrl: './blocks-list.html',
   styleUrl: './blocks-list.css',
   changeDetection: ChangeDetectionStrategy.OnPush
@@ -147,6 +148,12 @@ export class BlocksList extends ListStateViewHolder<BlockType> {
     this.selectedKinds.set(new Set());
   }
 
+  /** For the filter button's tooltip, in the order the menu lists them. */
+  selectedKindLabels(): string {
+    const selected = this.selectedKinds();
+    return this.availableKinds().filter((kind) => selected.has(kind.label)).map((kind) => kind.label).join(', ');
+  }
+
   readonly showLoading = computed(() => this.loading() || this.serviceLoading());
 
   kindOf(block: BlockType): BlockKind {
diff --git a/src/styles.css b/src/styles.css
index 5953060..448af17 100644
--- a/src/styles.css
+++ b/src/styles.css
@@ -654,3 +654,24 @@ body.node-focus-modal-open {
 .inner-nav {
   @apply flex flex-wrap justify-center gap-4 items-center max-w-7xl;
 }
+
+/* The palette's kind filter: its menu lives in the overlay, outside the palette's own styles. */
+.blocks-list-kind-menu {
+  --mat-menu-item-label-text-font: var(--font-body);
+  --mat-menu-item-label-text-size: 13px;
+  --mat-menu-item-label-text-weight: 500;
+}
+
+.blocks-list-kind-menu .mat-mdc-menu-item {
+  min-height: 36px;
+  font-family: var(--font-body);
+}
+
+.blocks-list-kind-menu .mat-mdc-menu-item .mat-mdc-menu-item-text {
+  font-family: var(--font-body);
+  font-size: 13px;
+}
+
+.blocks-list-kind-menu .mat-mdc-menu-item .mat-icon {
+  margin-right: 8px;
+}