diff --git a/packages/frontend/editor-ui/src/components/Logo/Logo.vue b/packages/frontend/editor-ui/src/components/Logo/Logo.vue
index 6d643de718..4b25eddec7 100644
--- a/packages/frontend/editor-ui/src/components/Logo/Logo.vue
+++ b/packages/frontend/editor-ui/src/components/Logo/Logo.vue
@@ -65,9 +65,7 @@ onMounted(() => {
 	<div :class="containerClasses" data-test-id="n8n-logo">
 		<LogoIcon :class="$style.logo" ref="logo" />
 		<LogoText v-if="showLogoText" :class="$style.logoText" />
-		<div v-if="showReleaseChannelTag" size="small" round :class="$style.releaseChannelTag">
-			{{ releaseChannel }}
-		</div>
+		<div v-if="showReleaseChannelTag" :class="$style.releaseChannelTag">{{ releaseChannel }}</div>
 		<slot />
 	</div>
 </template>
@@ -76,6 +74,7 @@ onMounted(() => {
 .logoContainer {
 	display: flex;
 	justify-content: center;
+	align-items: center;
 }
 
 .logoText {
@@ -91,12 +90,11 @@ onMounted(() => {
 	background-color: var(--color-background-base);
 	border: 1px solid var(--color-foreground-base);
 	border-radius: var(--border-radius-base);
-	font-size: var(--font-size-4xs);
+	font-size: var(--font-size-3xs);
 	font-weight: var(--font-weight-bold);
 	text-transform: capitalize;
 	line-height: var(--font-line-height-regular);
-	height: var(--spacing-s);
-	margin: 10px 0 0 3px;
+	margin: 8px 0 0 3px;
 }
 
 .authView {
@@ -104,12 +102,18 @@ onMounted(() => {
 	margin-bottom: var(--spacing-xl);
 }
 
-.sidebar {
+.logo,
+.logoText {
 	transform: scale(1.3);
 }
 
-.sidebarExpanded .logo {
+.logoText {
 	margin-left: var(--spacing-xs);
+	margin-right: var(--spacing-3xs);
+}
+
+.sidebarExpanded .logo {
+	margin-left: var(--spacing-3xs);
 }
 
 .sidebarCollapsed .logo {
diff --git a/packages/frontend/editor-ui/src/components/Logo/__tests__/__snapshots__/Logo.test.ts.snap b/packages/frontend/editor-ui/src/components/Logo/__tests__/__snapshots__/Logo.test.ts.snap
index 5947e5d0a5..3a05aaf73d 100644
--- a/packages/frontend/editor-ui/src/components/Logo/__tests__/__snapshots__/Logo.test.ts.snap
+++ b/packages/frontend/editor-ui/src/components/Logo/__tests__/__snapshots__/Logo.test.ts.snap
@@ -44,6 +44,6 @@ exports[`Logo > renders the releaseChannelTag for non-stable releaseChannel 1`]
       <path d="M18.367 21.2h1.624v-3.442c0-1.131.685-1.627 1.46-1.627.76 0 1.357.509 1.357 1.55v3.52h1.624V17.35c0-1.664-.964-2.63-2.474-2.63-.952 0-1.485.381-1.865.877h-.102l-.14-.75h-1.484zm-14.376 0H2.367v-6.352h1.485l.14.75h.1c.381-.496.914-.877 1.866-.877 1.51 0 2.474.966 2.474 2.63v3.85H6.808V17.68c0-1.041-.596-1.55-1.358-1.55-.774 0-1.459.496-1.459 1.627z"></path>
     </g>
   </svg>
-  <div size="small" round="" class="releaseChannelTag">dev</div>
+  <div class="releaseChannelTag">dev</div>
 </div>"
 `;
diff --git a/packages/frontend/editor-ui/src/components/MainSidebar.test.ts b/packages/frontend/editor-ui/src/components/MainSidebar.test.ts
new file mode 100644
index 0000000000..a10ea3bd65
--- /dev/null
+++ b/packages/frontend/editor-ui/src/components/MainSidebar.test.ts
@@ -0,0 +1,54 @@
+import { reactive } from 'vue';
+import { createComponentRenderer } from '@/__tests__/render';
+import { createTestingPinia } from '@pinia/testing';
+import { type MockedStore, mockedStore } from '@/__tests__/utils';
+import { defaultSettings } from '@/__tests__/defaults';
+import MainSidebar from '@/components/MainSidebar.vue';
+import { useSettingsStore } from '@/stores/settings.store';
+import { useUIStore } from '@/stores/ui.store';
+import { useSourceControlStore } from '@/stores/sourceControl.store';
+
+vi.mock('vue-router', () => ({
+	useRouter: () => ({}),
+	useRoute: () => reactive({}),
+	RouterLink: vi.fn(),
+}));
+
+let renderComponent: ReturnType<typeof createComponentRenderer>;
+let settingsStore: MockedStore<typeof useSettingsStore>;
+let uiStore: MockedStore<typeof useUIStore>;
+let sourceControlStore: MockedStore<typeof useSourceControlStore>;
+
+describe('MainSidebar', () => {
+	beforeEach(() => {
+		renderComponent = createComponentRenderer(MainSidebar, {
+			pinia: createTestingPinia(),
+		});
+		settingsStore = mockedStore(useSettingsStore);
+		uiStore = mockedStore(useUIStore);
+		sourceControlStore = mockedStore(useSourceControlStore);
+
+		settingsStore.settings = defaultSettings;
+	});
+
+	it('renders the sidebar without error', () => {
+		expect(() => renderComponent()).not.toThrow();
+	});
+
+	test.each([
+		[false, true, true],
+		[true, false, false],
+		[true, true, false],
+		[false, false, false],
+	])(
+		'should render readonly tooltip when is opened %s and the environment is readonly %s',
+		(sidebarMenuCollapsed, branchReadOnly, shouldRender) => {
+			uiStore.sidebarMenuCollapsed = sidebarMenuCollapsed;
+			sourceControlStore.preferences.branchReadOnly = branchReadOnly;
+
+			const { queryByTestId } = renderComponent();
+
+			expect(queryByTestId('read-only-env-icon') !== null).toBe(shouldRender);
+		},
+	);
+});
diff --git a/packages/frontend/editor-ui/src/components/MainSidebar.vue b/packages/frontend/editor-ui/src/components/MainSidebar.vue
index f354ff5d6c..a5019bd686 100644
--- a/packages/frontend/editor-ui/src/components/MainSidebar.vue
+++ b/packages/frontend/editor-ui/src/components/MainSidebar.vue
@@ -339,7 +339,12 @@ onClickOutside(createBtn as Ref<VueInstance>, () => {
 							</template>
 						</i18n-t>
 					</template>
-					<N8nIcon icon="lock" size="xsmall" :class="$style.readOnlyEnvironmentIcon" />
+					<N8nIcon
+						data-test-id="read-only-env-icon"
+						icon="lock"
+						size="xsmall"
+						:class="$style.readOnlyEnvironmentIcon"
+					/>
 				</N8nTooltip>
 			</Logo>
 			<N8nNavigationDropdown
@@ -368,7 +373,18 @@ onClickOutside(createBtn as Ref<VueInstance>, () => {
 					</N8nTooltip>
 				</template>
 				<template #[createProjectAppendSlotName]="{ item }">
-					<N8nTooltip v-if="item.disabled" placement="right" :content="projectsLimitReachedMessage">
+					<N8nTooltip
+						v-if="sourceControlStore.preferences.branchReadOnly"
+						placement="right"
+						:content="i18n.baseText('readOnlyEnv.cantAdd.project')"
+					>
+						<N8nIcon style="margin-left: auto; margin-right: 5px" icon="lock" size="xsmall" />
+					</N8nTooltip>
+					<N8nTooltip
+						v-else-if="item.disabled"
+						placement="right"
+						:content="projectsLimitReachedMessage"
+					>
 						<N8nButton
 							:size="'mini'"
 							style="margin-left: auto"
@@ -462,19 +478,17 @@ onClickOutside(createBtn as Ref<VueInstance>, () => {
 
 <style lang="scss" module>
 .sideMenu {
+	display: grid;
 	position: relative;
 	height: 100%;
+	grid-template-rows: auto 1fr auto;
 	border-right: var(--border-width-base) var(--border-style-base) var(--color-foreground-base);
 	transition: width 150ms ease-in-out;
-	width: $sidebar-expanded-width;
-	padding-top: 54px;
+	min-width: $sidebar-expanded-width;
+	max-width: 244px;
 	background-color: var(--menu-background, var(--color-background-xlight));
 
 	.logo {
-		position: absolute;
-		top: 0;
-		left: 0;
-		width: 100%;
 		display: flex;
 		align-items: center;
 		padding: var(--spacing-xs);
@@ -489,7 +503,7 @@ onClickOutside(createBtn as Ref<VueInstance>, () => {
 
 	&.sideMenuCollapsed {
 		width: $sidebar-width;
-		padding-top: 100px;
+		min-width: auto;
 
 		.logo {
 			flex-direction: column;
@@ -589,6 +603,6 @@ onClickOutside(createBtn as Ref<VueInstance>, () => {
 	align-self: center;
 	padding: 2px;
 	border-radius: var(--border-radius-small);
-	margin: 5px 5px 0;
+	margin: 7px 12px 0 5px;
 }
 </style>
diff --git a/packages/frontend/editor-ui/src/components/NodeDetailsView.vue b/packages/frontend/editor-ui/src/components/NodeDetailsView.vue
index 064d52ed7c..792515c76f 100644
--- a/packages/frontend/editor-ui/src/components/NodeDetailsView.vue
+++ b/packages/frontend/editor-ui/src/components/NodeDetailsView.vue
@@ -836,7 +836,7 @@ onBeforeUnmount(() => {
 }
 
 .data-display-wrapper {
-	height: calc(100% - var(--spacing-l)) !important;
+	height: 100%;
 	margin-top: var(--spacing-xl) !important;
 	margin-bottom: var(--spacing-xl) !important;
 	width: 100%;
diff --git a/packages/frontend/editor-ui/src/plugins/i18n/locales/en.json b/packages/frontend/editor-ui/src/plugins/i18n/locales/en.json
index 7fa297d7aa..df7207286f 100644
--- a/packages/frontend/editor-ui/src/plugins/i18n/locales/en.json
+++ b/packages/frontend/editor-ui/src/plugins/i18n/locales/en.json
@@ -911,6 +911,7 @@
 	"readOnlyEnv.tooltip.link": "More info.",
 	"readOnlyEnv.cantAdd.workflow": "You can't add new workflows to a protected n8n instance",
 	"readOnlyEnv.cantAdd.credential": "You can't add new credentials to a protected n8n instance",
+	"readOnlyEnv.cantAdd.project": "You can't add new projects to a protected n8n instance",
 	"readOnlyEnv.cantAdd.any": "You can't create new workflows or credentials on a protected n8n instance",
 	"readOnlyEnv.cantEditOrRun": "This workflow can't be edited or run manually because it's on a protected instance",
 	"mainSidebar.aboutN8n": "About n8n",
diff --git a/packages/frontend/editor-ui/src/stores/projects.store.ts b/packages/frontend/editor-ui/src/stores/projects.store.ts
index ee882e1dff..8370c36bd4 100644
--- a/packages/frontend/editor-ui/src/stores/projects.store.ts
+++ b/packages/frontend/editor-ui/src/stores/projects.store.ts
@@ -15,6 +15,7 @@ import { STORES } from '@/constants';
 import { useUsersStore } from '@/stores/users.store';
 import { getResourcePermissions } from '@/permissions';
 import type { CreateProjectDto, UpdateProjectDto } from '@n8n/api-types';
+import { useSourceControlStore } from '@/stores/sourceControl.store';
 
 export const useProjectsStore = defineStore(STORES.PROJECTS, () => {
 	const route = useRoute();
@@ -22,6 +23,7 @@ export const useProjectsStore = defineStore(STORES.PROJECTS, () => {
 	const settingsStore = useSettingsStore();
 	const credentialsStore = useCredentialsStore();
 	const usersStore = useUsersStore();
+	const sourceControlStore = useSourceControlStore();
 
 	const projects = ref<ProjectListItem[]>([]);
 	const myProjects = ref<ProjectListItem[]>([]);
@@ -60,8 +62,9 @@ export const useProjectsStore = defineStore(STORES.PROJECTS, () => {
 	);
 	const canCreateProjects = computed<boolean>(
 		() =>
-			hasUnlimitedProjects.value ||
-			(isTeamProjectFeatureEnabled.value && !isTeamProjectLimitExceeded.value),
+			(hasUnlimitedProjects.value ||
+				(isTeamProjectFeatureEnabled.value && !isTeamProjectLimitExceeded.value)) &&
+			!sourceControlStore.preferences.branchReadOnly,
 	);
 	const hasPermissionToCreateProjects = computed(() =>
 		hasPermission(['rbac'], { rbac: { scope: 'project:create' } }),