diff --git a/src/components/Navigation/KebabMenu/index.tsx b/src/components/Navigation/KebabMenu/index.tsx
index 5889cfdf6..6a3e346b0 100644
--- a/src/components/Navigation/KebabMenu/index.tsx
+++ b/src/components/Navigation/KebabMenu/index.tsx
@@ -10,6 +10,7 @@ import { ConfigContext } from "../../common/App/ConfigContext";
 import { ToggleSwitch } from "../../common/ToggleSwitch";
 import { DigmaLogoFlatIcon } from "../../common/icons/16px/DigmaLogoFlatIcon";
 import { OpenTelemetryLogoIcon } from "../../common/icons/16px/OpenTelemetryLogoIcon";
+import { LocalEngineIcon } from "../../common/icons/LocalEngineIcon";
 import { MenuList } from "../common/MenuList";
 import { ListItemIconContainer } from "../common/MenuList/styles";
 import { Popup } from "../common/Popup";
@@ -84,17 +85,13 @@ export const KebabMenu = (props: KebabMenuProps) => {
             icon: <DigmaLogoFlatIcon size={16} color={"currentColor"} />,
             onClick: handleOnboardingClick
           },
-          ...(isDigmaEngineRunning(config)
-            ? [
-                {
-                  id: "localEngine",
-                  groupName: "settings",
-                  label: "Local Engine",
-                  icon: <s.LocalEngineStatusBadge />,
-                  onClick: handleLocalEngineClick
-                }
-              ]
-            : [])
+          {
+            id: "localEngine",
+            groupName: "settings",
+            label: "Local Engine",
+            icon: <LocalEngineIcon isActive={isDigmaEngineRunning(config)} />,
+            onClick: handleLocalEngineClick
+          }
         ]}
       />
     </Popup>
diff --git a/src/components/common/icons/LocalEngineIcon.tsx b/src/components/common/icons/LocalEngineIcon.tsx
new file mode 100644
index 000000000..327b4028e
--- /dev/null
+++ b/src/components/common/icons/LocalEngineIcon.tsx
@@ -0,0 +1,35 @@
+import React from "react";
+import { useIconProps } from "./hooks";
+import { IconProps } from "./types";
+
+const LocalEngineIconComponent = (
+  props: IconProps & { isActive?: boolean }
+) => {
+  const { size, color } = useIconProps(props);
+  const status = props.isActive ? "#6EBD9C" : undefined;
+
+  return (
+    <svg
+      xmlns="http://www.w3.org/2000/svg"
+      width={size}
+      height={size}
+      viewBox="0 0 16 14"
+      fill={color}
+    >
+      <g stroke="#F0F1F7">
+        <rect
+          width="9.667"
+          height="8.333"
+          x="3.167"
+          y=".833"
+          rx=".833"
+          fill={status}
+        />
+        <path d="M8 9v3.333m0 0H0m8 0h8" />
+        <path strokeLinecap="round" strokeWidth="2" d="M6.667 12.334h2.666" />
+      </g>
+    </svg>
+  );
+};
+
+export const LocalEngineIcon = React.memo(LocalEngineIconComponent);