diff --git a/.changeset/menu-item-trailing-alignment.md b/.changeset/menu-item-trailing-alignment.md
new file mode 100644
index 0000000000..acf5274ec1
--- /dev/null
+++ b/.changeset/menu-item-trailing-alignment.md
@@ -0,0 +1,5 @@
+---
+'@razorpay/blade': patch
+---
+
+fix(ActionList/Menu): vertically center `trailing` slot of items so that it aligns with the `title` and `leading` slot
diff --git a/packages/blade/src/components/ActionList/ActionList.stories.tsx b/packages/blade/src/components/ActionList/ActionList.stories.tsx
index 9530254c68..47784759b5 100644
--- a/packages/blade/src/components/ActionList/ActionList.stories.tsx
+++ b/packages/blade/src/components/ActionList/ActionList.stories.tsx
@@ -17,6 +17,7 @@ import { Sandbox } from '~utils/storybook/Sandbox';
 import StoryPageWrapper from '~utils/storybook/StoryPageWrapper';
 import { Box } from '~components/Box';
 import {
+  ArrowRightIcon,
   DownloadIcon,
   SettingsIcon,
   BankIcon,
@@ -175,6 +176,13 @@ const ActionListWithTrailingComponentsExample: StoryFn<typeof ActionListComponen
             value="faqs"
             trailing={<ActionListItemText>⌘ + H</ActionListItemText>}
           />
+          <ActionListItem
+            title="Create a Payout"
+            description="Pay a single beneficiary"
+            value="create_payout"
+            leading={<ActionListItemIcon icon={DownloadIcon} />}
+            trailing={<ActionListItemIcon icon={ArrowRightIcon} />}
+          />
         </ActionListComponent>
       </Box>
     </BaseBox>
diff --git a/packages/blade/src/components/BaseMenu/BaseMenuItem/BaseMenuItem.tsx b/packages/blade/src/components/BaseMenu/BaseMenuItem/BaseMenuItem.tsx
index 8d15240a47..0a04520f7c 100644
--- a/packages/blade/src/components/BaseMenu/BaseMenuItem/BaseMenuItem.tsx
+++ b/packages/blade/src/components/BaseMenu/BaseMenuItem/BaseMenuItem.tsx
@@ -126,7 +126,15 @@ const _BaseMenuItem: React.ForwardRefRenderFunction<BladeElementRef, BaseMenuIte
                 ) : null}
               </Box>
             </Box>
-            <Box marginLeft="auto">{trailing}</Box>
+            <Box
+              marginLeft="auto"
+              display="flex"
+              justifyContent="center"
+              alignItems="center"
+              minHeight={makeSize(itemFirstRowHeight)}
+            >
+              {trailing}
+            </Box>
           </Box>
         )}
       </StyledMenuItemContainer>
diff --git a/packages/blade/src/components/BottomSheet/__tests__/__snapshots__/BottomSheet.web.test.tsx.snap b/packages/blade/src/components/BottomSheet/__tests__/__snapshots__/BottomSheet.web.test.tsx.snap
index 594ccc6795..96b834775a 100644
--- a/packages/blade/src/components/BottomSheet/__tests__/__snapshots__/BottomSheet.web.test.tsx.snap
+++ b/packages/blade/src/components/BottomSheet/__tests__/__snapshots__/BottomSheet.web.test.tsx.snap
@@ -165,7 +165,20 @@ exports[`<BottomSheet /> should compose with DropdownButton 1`] = `
 }
 
 .c24.c24.c24.c24.c24 {
+  display: -webkit-box;
+  display: -webkit-flex;
+  display: -ms-flexbox;
+  display: flex;
+  -webkit-align-items: center;
+  -webkit-box-align: center;
+  -ms-flex-align: center;
+  align-items: center;
+  -webkit-box-pack: center;
+  -webkit-justify-content: center;
+  -ms-flex-pack: center;
+  justify-content: center;
   margin-left: auto;
+  min-height: 20px;
 }
 
 .c12.c12.c12.c12.c12 {
diff --git a/packages/blade/src/components/Dropdown/__tests__/__snapshots__/Dropdown.native.test.tsx.snap b/packages/blade/src/components/Dropdown/__tests__/__snapshots__/Dropdown.native.test.tsx.snap
index d90bf33c20..aabc4de10a 100644
--- a/packages/blade/src/components/Dropdown/__tests__/__snapshots__/Dropdown.native.test.tsx.snap
+++ b/packages/blade/src/components/Dropdown/__tests__/__snapshots__/Dropdown.native.test.tsx.snap
@@ -1322,11 +1322,19 @@ exports[`<Dropdown /> should render dropdown 1`] = `
                           />
                         </View>
                         <View
+                          alignItems="center"
                           data-blade-component="box"
+                          display="flex"
+                          justifyContent="center"
+                          minHeight="20px"
                           style={
                             [
                               {
+                                "alignItems": "center",
+                                "display": "flex",
+                                "justifyContent": "center",
                                 "marginLeft": "auto",
+                                "minHeight": 20,
                               },
                             ]
                           }
@@ -1501,11 +1509,19 @@ exports[`<Dropdown /> should render dropdown 1`] = `
                           />
                         </View>
                         <View
+                          alignItems="center"
                           data-blade-component="box"
+                          display="flex"
+                          justifyContent="center"
+                          minHeight="20px"
                           style={
                             [
                               {
+                                "alignItems": "center",
+                                "display": "flex",
+                                "justifyContent": "center",
                                 "marginLeft": "auto",
+                                "minHeight": 20,
                               },
                             ]
                           }
diff --git a/packages/blade/src/components/Dropdown/__tests__/__snapshots__/FilterChipSelectInput.native.test.tsx.snap b/packages/blade/src/components/Dropdown/__tests__/__snapshots__/FilterChipSelectInput.native.test.tsx.snap
index 5fe73d792c..c55bd27a27 100644
--- a/packages/blade/src/components/Dropdown/__tests__/__snapshots__/FilterChipSelectInput.native.test.tsx.snap
+++ b/packages/blade/src/components/Dropdown/__tests__/__snapshots__/FilterChipSelectInput.native.test.tsx.snap
@@ -574,11 +574,19 @@ exports[`<FilterChipSelectInput /> (native) should render with default props 1`]
                           />
                         </View>
                         <View
+                          alignItems="center"
                           data-blade-component="box"
+                          display="flex"
+                          justifyContent="center"
+                          minHeight="20px"
                           style={
                             [
                               {
+                                "alignItems": "center",
+                                "display": "flex",
+                                "justifyContent": "center",
                                 "marginLeft": "auto",
+                                "minHeight": 20,
                               },
                             ]
                           }
@@ -753,11 +761,19 @@ exports[`<FilterChipSelectInput /> (native) should render with default props 1`]
                           />
                         </View>
                         <View
+                          alignItems="center"
                           data-blade-component="box"
+                          display="flex"
+                          justifyContent="center"
+                          minHeight="20px"
                           style={
                             [
                               {
+                                "alignItems": "center",
+                                "display": "flex",
+                                "justifyContent": "center",
                                 "marginLeft": "auto",
+                                "minHeight": 20,
                               },
                             ]
                           }
diff --git a/packages/blade/src/components/Input/DropdownInputTriggers/__tests__/__snapshots__/AutoComplete.native.test.tsx.snap b/packages/blade/src/components/Input/DropdownInputTriggers/__tests__/__snapshots__/AutoComplete.native.test.tsx.snap
index b0b73efe8f..4a008420b9 100644
--- a/packages/blade/src/components/Input/DropdownInputTriggers/__tests__/__snapshots__/AutoComplete.native.test.tsx.snap
+++ b/packages/blade/src/components/Input/DropdownInputTriggers/__tests__/__snapshots__/AutoComplete.native.test.tsx.snap
@@ -1219,11 +1219,19 @@ exports[`<Dropdown /> with <AutoComplete /> should render AutoComplete 1`] = `
                           />
                         </View>
                         <View
+                          alignItems="center"
                           data-blade-component="box"
+                          display="flex"
+                          justifyContent="center"
+                          minHeight="20px"
                           style={
                             [
                               {
+                                "alignItems": "center",
+                                "display": "flex",
+                                "justifyContent": "center",
                                 "marginLeft": "auto",
+                                "minHeight": 20,
                               },
                             ]
                           }
@@ -1524,11 +1532,19 @@ exports[`<Dropdown /> with <AutoComplete /> should render AutoComplete 1`] = `
                           />
                         </View>
                         <View
+                          alignItems="center"
                           data-blade-component="box"
+                          display="flex"
+                          justifyContent="center"
+                          minHeight="20px"
                           style={
                             [
                               {
+                                "alignItems": "center",
+                                "display": "flex",
+                                "justifyContent": "center",
                                 "marginLeft": "auto",
+                                "minHeight": 20,
                               },
                             ]
                           }
@@ -1829,11 +1845,19 @@ exports[`<Dropdown /> with <AutoComplete /> should render AutoComplete 1`] = `
                           />
                         </View>
                         <View
+                          alignItems="center"
                           data-blade-component="box"
+                          display="flex"
+                          justifyContent="center"
+                          minHeight="20px"
                           style={
                             [
                               {
+                                "alignItems": "center",
+                                "display": "flex",
+                                "justifyContent": "center",
                                 "marginLeft": "auto",
+                                "minHeight": 20,
                               },
                             ]
                           }
diff --git a/packages/blade/src/components/Input/DropdownInputTriggers/__tests__/__snapshots__/AutoComplete.web.test.tsx.snap b/packages/blade/src/components/Input/DropdownInputTriggers/__tests__/__snapshots__/AutoComplete.web.test.tsx.snap
index ca93da70f8..413417ec5f 100644
--- a/packages/blade/src/components/Input/DropdownInputTriggers/__tests__/__snapshots__/AutoComplete.web.test.tsx.snap
+++ b/packages/blade/src/components/Input/DropdownInputTriggers/__tests__/__snapshots__/AutoComplete.web.test.tsx.snap
@@ -978,7 +978,20 @@ exports[`<BottomSheet /> & <Dropdown /> with <AutoComplete /> should render Bott
 }
 
 .c51.c51.c51.c51.c51 {
+  display: -webkit-box;
+  display: -webkit-flex;
+  display: -ms-flexbox;
+  display: flex;
+  -webkit-align-items: center;
+  -webkit-box-align: center;
+  -ms-flex-align: center;
+  align-items: center;
+  -webkit-box-pack: center;
+  -webkit-justify-content: center;
+  -ms-flex-pack: center;
+  justify-content: center;
   margin-left: auto;
+  min-height: 20px;
 }
 
 .c52.c52.c52.c52.c52 {
diff --git a/packages/blade/src/components/Menu/__tests__/__snapshots__/Menu.web.test.tsx.snap b/packages/blade/src/components/Menu/__tests__/__snapshots__/Menu.web.test.tsx.snap
index 992cb3d454..7aea2e91e5 100644
--- a/packages/blade/src/components/Menu/__tests__/__snapshots__/Menu.web.test.tsx.snap
+++ b/packages/blade/src/components/Menu/__tests__/__snapshots__/Menu.web.test.tsx.snap
@@ -199,7 +199,20 @@ exports[`Menu renders a Menu 1`] = `
 }
 
 .c28.c28.c28.c28.c28 {
+  display: -webkit-box;
+  display: -webkit-flex;
+  display: -ms-flexbox;
+  display: flex;
+  -webkit-align-items: center;
+  -webkit-box-align: center;
+  -ms-flex-align: center;
+  align-items: center;
+  -webkit-box-pack: center;
+  -webkit-justify-content: center;
+  -ms-flex-pack: center;
+  justify-content: center;
   margin-left: auto;
+  min-height: 20px;
 }
 
 .c29.c29.c29.c29.c29 {
@@ -1270,7 +1283,20 @@ exports[`Menu should support data-analytics attribute 1`] = `
 }
 
 .c28.c28.c28.c28.c28 {
+  display: -webkit-box;
+  display: -webkit-flex;
+  display: -ms-flexbox;
+  display: flex;
+  -webkit-align-items: center;
+  -webkit-box-align: center;
+  -ms-flex-align: center;
+  align-items: center;
+  -webkit-box-pack: center;
+  -webkit-justify-content: center;
+  -ms-flex-pack: center;
+  justify-content: center;
   margin-left: auto;
+  min-height: 20px;
 }
 
 .c29.c29.c29.c29.c29 {