diff --git a/frontend/src/components/Modals/ManageWorkspace/Documents/Directory/utils.js b/frontend/src/components/Modals/ManageWorkspace/Documents/Directory/utils.js
index 3145408593103a7808637b6f3bd6b872fbe4ca4b..3cce544eaf52a868aa4d8ea5ca6d286261778570 100644
--- a/frontend/src/components/Modals/ManageWorkspace/Documents/Directory/utils.js
+++ b/frontend/src/components/Modals/ManageWorkspace/Documents/Directory/utils.js
@@ -1,6 +1,6 @@
 import strDistance from "js-levenshtein";
 
-const LEVENSHTEIN_MIN = 8;
+const LEVENSHTEIN_MIN = 2;
 
 // Regular expression pattern to match the v4 UUID and the ending .json
 const uuidPattern =
@@ -18,20 +18,33 @@ export const stripUuidAndJsonFromString = (input = "") => {
 export function filterFileSearchResults(files = [], searchTerm = "") {
   if (!searchTerm) return files?.items || [];
 
+  const normalizedSearchTerm = searchTerm.toLowerCase().trim();
+
   const searchResult = [];
   for (const folder of files?.items) {
-    // If folder is a good match then add all its children
-    if (strDistance(folder.name, searchTerm) <= LEVENSHTEIN_MIN) {
+    const folderNameNormalized = folder.name.toLowerCase();
+
+    // Check for exact match first, then fuzzy match
+    if (folderNameNormalized.includes(normalizedSearchTerm)) {
       searchResult.push(folder);
       continue;
     }
 
-    // Otherwise check children for good results
+    // Check children for matches
     const fileSearchResults = [];
     for (const file of folder?.items) {
-      if (
-        strDistance(stripUuidAndJsonFromString(file.name), searchTerm) <=
-        LEVENSHTEIN_MIN
+      const fileNameNormalized = stripUuidAndJsonFromString(
+        file.name
+      ).toLowerCase();
+
+      // Exact match check
+      if (fileNameNormalized.includes(normalizedSearchTerm)) {
+        fileSearchResults.push(file);
+      }
+      // Fuzzy match only if no exact matches found
+      else if (
+        fileSearchResults.length === 0 &&
+        strDistance(fileNameNormalized, normalizedSearchTerm) <= LEVENSHTEIN_MIN
       ) {
         fileSearchResults.push(file);
       }