diff --git a/src/dashboard/DashboardGrids.tsx b/src/dashboard/DashboardGrids.tsx
index ba23661..e7d8a55 100644
--- a/src/dashboard/DashboardGrids.tsx
+++ b/src/dashboard/DashboardGrids.tsx
@@ -10,6 +10,7 @@ import {
   readyToPayColumns,
 } from "@/dashboard/columns";
 import { EMPTY_INVOICE_FILTERS, type InvoiceFilterState } from "@/dashboard/invoice-filters";
+import { InvoiceTabLabel } from "@/dashboard/invoice-tabs";
 import { countSelectedRows } from "@/dashboard/selection";
 import { useInvoices, useUpdateInvoicePayDate } from "@/domain/invoices/use-invoices";
 import { areMocksEnabled, type MockInvoice } from "@/mocks";
@@ -24,6 +25,27 @@ const emptySelection: GridRowSelectionModel = {
 
 const emptyFilters = EMPTY_INVOICE_FILTERS;
 
+const invoiceTabsSx = {
+  minHeight: 44,
+  "& .MuiTab-root": {
+    bgcolor: "rgba(47,128,237,0.12)",
+    mr: 0.5,
+    borderTopLeftRadius: 6,
+    borderTopRightRadius: 6,
+    color: "text.primary",
+    textTransform: "none",
+  },
+  "& .Mui-selected": {
+    bgcolor: "#fff !important",
+    color: "text.primary !important",
+  },
+  "& .MuiTabs-indicator": {
+    height: 3,
+    borderRadius: 1,
+    backgroundColor: "#7B61FF",
+  },
+} as const;
+
 const rowClickSx = {
   border: 1,
   borderColor: "divider",
@@ -134,47 +156,87 @@ export function DashboardGrids() {
           }}
           variant="scrollable"
           aria-label="Invoice Processing tabs"
-          sx={{
-            minHeight: 44,
-            "& .MuiTab-root": {
-              bgcolor: "rgba(47,128,237,0.12)",
-              mr: 0.5,
-              borderTopLeftRadius: 6,
-              borderTopRightRadius: 6,
-              color: "text.primary",
-            },
-            "& .Mui-selected": {
-              bgcolor: "#fff !important",
-              color: "text.primary !important",
-            },
-            "& .MuiTabs-indicator": { display: "none" },
-          }}
+          sx={invoiceTabsSx}
         >
           <Tab
-            label={`For My Attention (${attentionRows.length})`}
+            label={
+              <InvoiceTabLabel
+                title="For My Attention"
+                count={attentionRows.length}
+                active={tab === "attention"}
+              />
+            }
             value="attention"
             data-testid="tab-pending"
           />
-          <Tab label={`New Invoices (${invoices.length})`} value="all" data-testid="tab-all" />
           <Tab
-            label={`Approved Invoices (${approvedRows.length})`}
+            label={
+              <InvoiceTabLabel
+                title="New Invoices"
+                count={invoices.length}
+                active={tab === "all"}
+              />
+            }
+            value="all"
+            data-testid="tab-all"
+          />
+          <Tab
+            label={
+              <InvoiceTabLabel
+                title="Approved Invoices"
+                count={approvedRows.length}
+                active={tab === "approved"}
+              />
+            }
             value="approved"
             data-testid="tab-ready"
           />
           <Tab
-            label={`Rejected Invoices (${rejectedRows.length})`}
+            label={
+              <InvoiceTabLabel
+                title="Rejected Invoices"
+                count={rejectedRows.length}
+                active={tab === "rejected"}
+              />
+            }
             value="rejected"
             data-testid="tab-rejected"
           />
-          <Tab label={`Late Invoices (${lateRows.length})`} value="late" data-testid="tab-late" />
+          <Tab
+            label={
+              <InvoiceTabLabel
+                title="Late Invoices"
+                count={lateRows.length}
+                active={tab === "late"}
+                urgency
+              />
+            }
+            value="late"
+            data-testid="tab-late"
+          />
         </Tabs>
       </Box>
 
       <Box sx={{ bgcolor: "background.paper", p: 2 }}>
         {attentionRows.length > 0 && tab === "attention" ? (
-          <Alert severity="info" sx={{ mb: 2 }} data-testid="attention-banner">
-            {attentionRows.length} invoices require approval. Show Invoices ready to approve.
-          </Alert>
+          <Typography
+            component="button"
+            type="button"
+            data-testid="attention-banner"
+            sx={{
+              display: "block",
+              mb: 1.5,
+              p: 0,
+              border: 0,
+              background: "none",
+              cursor: "pointer",
+              color: "primary.main",
+              typography: "body2",
+              textAlign: "left",
+            }}
+          >
+            {attentionRows.length} invoices require approval. Show invoices ready to approve.
+          </Typography>
         ) : null}
 
         <InvoiceFilterToolbar
diff --git a/src/dashboard/InvoiceFilterToolbar.tsx b/src/dashboard/InvoiceFilterToolbar.tsx
index 009ab27..ee1f548 100644
--- a/src/dashboard/InvoiceFilterToolbar.tsx
+++ b/src/dashboard/InvoiceFilterToolbar.tsx
@@ -23,6 +23,14 @@ type InvoiceFilterToolbarProps = {
   trailingActions?: ReactElement | null;
 };
 
+const fieldSx = {
+  minWidth: 180,
+  "& .MuiOutlinedInput-root": {
+    borderRadius: "6px",
+    backgroundColor: "background.paper",
+  },
+} as const;
+
 export function InvoiceFilterToolbar({
   filters,
   onFiltersChange,
@@ -33,80 +41,84 @@ export function InvoiceFilterToolbar({
   const activeCount = countActiveFilters(filters);
 
   return (
-    <Stack
-      direction="row"
-      spacing={1}
-      alignItems="center"
-      sx={{ mb: 2 }}
-      flexWrap="wrap"
-      useFlexGap
-    >
-      <Box data-testid="action-filter" sx={{ minWidth: 240 }}>
-        <Autocomplete
+    <Stack spacing={1.5} sx={{ mb: 2 }}>
+      <Stack direction="row" spacing={1} alignItems="center" flexWrap="wrap" useFlexGap>
+        <Box data-testid="action-filter" sx={{ ...fieldSx, minWidth: 220 }}>
+          <Autocomplete
+            size="small"
+            options={[...INVOICE_ACTION_OPTIONS]}
+            value={filters.action}
+            onChange={(_event, value) => onFiltersChange({ ...filters, action: value })}
+            renderInput={(params) => (
+              <TextField
+                {...params}
+                placeholder="Action"
+                label={undefined}
+                InputLabelProps={{ shrink: false }}
+              />
+            )}
+          />
+        </Box>
+        <TextField
           size="small"
-          options={[...INVOICE_ACTION_OPTIONS]}
-          value={filters.action}
-          onChange={(_event, value) => onFiltersChange({ ...filters, action: value })}
-          renderInput={(params) => <TextField {...params} placeholder="Search" label="Action" />}
+          name="vendor"
+          id="vendor"
+          placeholder="Vendor"
+          value={filters.vendorQuery}
+          onChange={(event) => onFiltersChange({ ...filters, vendorQuery: event.target.value })}
+          sx={fieldSx}
+          slotProps={{
+            htmlInput: { "data-testid": "vendor-filter", "aria-label": "Vendor" },
+            input: {
+              endAdornment: filters.vendorQuery ? (
+                <InputAdornment position="end">
+                  <Button
+                    size="small"
+                    onClick={() => onFiltersChange({ ...filters, vendorQuery: "" })}
+                    aria-label="Clear vendor"
+                  >
+                    Clear
+                  </Button>
+                </InputAdornment>
+              ) : undefined,
+            },
+          }}
         />
-      </Box>
-      <TextField
-        size="small"
-        name="vendor"
-        id="vendor"
-        label="Vendor"
-        placeholder="Vendor"
-        value={filters.vendorQuery}
-        onChange={(event) => onFiltersChange({ ...filters, vendorQuery: event.target.value })}
-        sx={{ minWidth: 180 }}
-        slotProps={{
-          htmlInput: { "data-testid": "vendor-filter" },
-          input: {
-            endAdornment: filters.vendorQuery ? (
-              <InputAdornment position="end">
-                <Button
-                  size="small"
-                  onClick={() => onFiltersChange({ ...filters, vendorQuery: "" })}
-                  aria-label="Clear vendor"
-                >
-                  Clear
-                </Button>
-              </InputAdornment>
-            ) : undefined,
-          },
-        }}
-      />
-      <Box sx={{ flexGrow: 1 }} />
-      <IconButton
-        size="small"
-        aria-label="Filter actions"
-        data-testid="filter-actions-menu"
-        id="default-filter-actions-menu"
-      >
-        <MoreVertIcon fontSize="small" />
-      </IconButton>
-      <IconButton
-        size="small"
-        aria-label="Open filters"
-        data-testid="filter-toggle"
-        onClick={onOpenFilterDrawer}
-      >
-        <Badge badgeContent={activeCount || undefined} color="primary">
-          <FilterListIcon fontSize="small" />
-        </Badge>
-      </IconButton>
-      <IconButton
-        size="small"
-        aria-label="Open columns"
-        data-testid="columns-toggle"
-        onClick={onOpenColumnsDrawer}
-      >
-        <ViewWeekOutlinedIcon fontSize="small" />
-      </IconButton>
-      <Button variant="contained" size="small" data-testid="review-all-items">
-        Review All Items
-      </Button>
-      {trailingActions}
+        <Box sx={{ flexGrow: 1 }} />
+        <IconButton
+          size="small"
+          aria-label="Filter actions"
+          data-testid="filter-actions-menu"
+          id="default-filter-actions-menu"
+        >
+          <MoreVertIcon fontSize="small" />
+        </IconButton>
+        <IconButton
+          size="small"
+          aria-label="Open filters"
+          data-testid="filter-toggle"
+          onClick={onOpenFilterDrawer}
+        >
+          <Badge badgeContent={activeCount || undefined} color="primary">
+            <FilterListIcon fontSize="small" />
+          </Badge>
+        </IconButton>
+        <IconButton
+          size="small"
+          aria-label="Open columns"
+          data-testid="columns-toggle"
+          onClick={onOpenColumnsDrawer}
+        >
+          <ViewWeekOutlinedIcon fontSize="small" />
+        </IconButton>
+      </Stack>
+
+      <Stack direction="row" spacing={1} alignItems="center">
+        <Button variant="contained" size="small" data-testid="review-all-items">
+          Review All Items
+        </Button>
+        {trailingActions}
+      </Stack>
     </Stack>
   );
 }
diff --git a/src/dashboard/invoice-tabs.tsx b/src/dashboard/invoice-tabs.tsx
new file mode 100644
index 0000000..6e18d1f
--- /dev/null
+++ b/src/dashboard/invoice-tabs.tsx
@@ -0,0 +1,40 @@
+import ErrorOutlineIcon from "@mui/icons-material/ErrorOutline";
+import { Box, Stack } from "@mui/material";
+import type { ReactElement } from "react";
+
+export function InvoiceTabLabel({
+  title,
+  count,
+  active = false,
+  urgency = false,
+}: {
+  title: string;
+  count: number;
+  active?: boolean;
+  urgency?: boolean;
+}): ReactElement {
+  return (
+    <Stack direction="row" spacing={0.75} alignItems="center" component="span">
+      <Box component="span">{title}</Box>
+      {urgency ? <ErrorOutlineIcon sx={{ fontSize: 16, color: "error.main" }} aria-hidden /> : null}
+      <Box
+        component="span"
+        sx={{
+          minWidth: 22,
+          height: 22,
+          px: 0.75,
+          borderRadius: 999,
+          display: "inline-flex",
+          alignItems: "center",
+          justifyContent: "center",
+          fontSize: 12,
+          fontWeight: 700,
+          bgcolor: active ? "#7B61FF" : urgency ? "error.main" : "primary.main",
+          color: "#fff",
+        }}
+      >
+        {count}
+      </Box>
+    </Stack>
+  );
+}