diff --git a/src/space-model/services/space-model-product-allocation.service.ts b/src/space-model/services/space-model-product-allocation.service.ts
index 6e56c3d..87344c8 100644
--- a/src/space-model/services/space-model-product-allocation.service.ts
+++ b/src/space-model/services/space-model-product-allocation.service.ts
@@ -124,15 +124,56 @@ export class SpaceModelProductAllocationService {
     modifySubspaceModels?: ModifySubspaceModelDto[],
   ): Promise<void> {
     try {
+      const addDtos = dtos.filter((dto) => dto.action === ModifyAction.ADD);
+      const deleteDtos = dtos.filter(
+        (dto) => dto.action === ModifyAction.DELETE,
+      );
+
+      const addTagDtos: ProcessTagDto[] = addDtos.map((dto) => ({
+        name: dto.name,
+        productUuid: dto.productUuid,
+        uuid: dto.newTagUuid,
+      }));
+
+      const processedTags = await this.tagService.processTags(
+        addTagDtos,
+        projectUuid,
+        queryRunner,
+      );
+      const addTagUuidMap = new Map<string, ModifyTagModelDto>();
+      processedTags.forEach((tag, index) => {
+        addTagUuidMap.set(tag.uuid, addDtos[index]);
+      });
+
+      const addTagUuids = new Set(processedTags.map((tag) => tag.uuid));
+      const deleteTagUuids = new Set(deleteDtos.map((dto) => dto.tagUuid));
+
+      const tagsToIgnore = new Set(
+        [...addTagUuids].filter((uuid) => deleteTagUuids.has(uuid)),
+      );
+
+      const filteredDtos = dtos.filter(
+        (dto) =>
+          !(
+            tagsToIgnore.has(dto.tagUuid) ||
+            (dto.action === ModifyAction.ADD &&
+              tagsToIgnore.has(
+                [...addTagUuidMap.keys()].find(
+                  (uuid) => addTagUuidMap.get(uuid) === dto,
+                ),
+              ))
+          ),
+      );
+
       await Promise.all([
         this.processAddActions(
-          dtos,
+          filteredDtos,
           projectUuid,
           spaceModel,
           queryRunner,
           modifySubspaceModels,
         ),
-        this.processDeleteActions(dtos, queryRunner),
+        this.processDeleteActions(filteredDtos, queryRunner),
       ]);
     } catch (error) {
       throw this.handleError(error, 'Error while updating product allocations');
@@ -238,7 +279,7 @@ export class SpaceModelProductAllocationService {
   ): Promise<SpaceModelProductAllocationEntity[]> {
     try {
       if (!dtos || dtos.length === 0) {
-        throw new Error('No DTOs provided for deletion.');
+        return;
       }
 
       const tagUuidsToDelete = dtos
diff --git a/src/space/services/space.service.ts b/src/space/services/space.service.ts
index 53638c2..614950f 100644
--- a/src/space/services/space.service.ts
+++ b/src/space/services/space.service.ts
@@ -139,8 +139,6 @@ export class SpaceService {
         message: 'Space created successfully',
       });
     } catch (error) {
-      console.log('error', error);
-
       await queryRunner.rollbackTransaction();
 
       if (error instanceof HttpException) {
diff --git a/src/tags/services/tags.service.ts b/src/tags/services/tags.service.ts
index 278d801..aae34be 100644
--- a/src/tags/services/tags.service.ts
+++ b/src/tags/services/tags.service.ts
@@ -67,37 +67,52 @@ export class TagService {
   }
 
   async processTags(
-    tags: ProcessTagDto[],
+    tagDtos: ProcessTagDto[],
     projectUuid: string,
     queryRunner?: QueryRunner,
   ): Promise<NewTagEntity[]> {
     try {
-      if (!tags || tags.length === 0) {
+      if (!tagDtos || tagDtos.length === 0) {
         return [];
       }
 
-      const newTags: CreateTagDto[] = [];
+      const newTagDtos: CreateTagDto[] = [];
       const existingTagUuids: string[] = [];
+      let fetchedExistingTags: NewTagEntity[] = [];
+      const directlyFetchedTags: NewTagEntity[] = [];
 
-      // Separate new tags and existing tag UUIDs
-      for (const tag of tags) {
-        if (tag.uuid) {
-          existingTagUuids.push(tag.uuid);
+      // Separate existing tag UUIDs and new tag DTOs
+      for (const tagDto of tagDtos) {
+        if (tagDto.uuid) {
+          existingTagUuids.push(tagDto.uuid);
         } else {
-          if (!tag.name || !tag.productUuid) {
+          if (!tagDto.name || !tagDto.productUuid) {
             throw new HttpException(
-              `Tag name or product id is missing `,
+              `Tag name or product UUID is missing`,
               HttpStatus.BAD_REQUEST,
             );
           }
-          newTags.push(tag);
+
+          const existingTag = await queryRunner.manager.findOne(NewTagEntity, {
+            where: {
+              name: tagDto.name,
+              product: { uuid: tagDto.productUuid },
+              project: { uuid: projectUuid },
+            },
+            relations: ['product'],
+          });
+
+          if (!existingTag) {
+            newTagDtos.push(tagDto);
+          } else {
+            directlyFetchedTags.push(existingTag);
+          }
         }
       }
 
-      let existingTags: NewTagEntity[] = [];
-
+      // Fetch existing tags using UUIDs
       if (existingTagUuids.length > 0) {
-        existingTags = await (queryRunner
+        fetchedExistingTags = await (queryRunner
           ? queryRunner.manager.find(NewTagEntity, {
               where: {
                 uuid: In(existingTagUuids),
@@ -114,9 +129,9 @@ export class TagService {
             }));
       }
 
-      // Check for missing UUIDs
-      if (existingTags.length !== existingTagUuids.length) {
-        const foundUuids = new Set(existingTags.map((tag) => tag.uuid));
+      // Ensure all provided UUIDs exist in the database
+      if (fetchedExistingTags.length !== existingTagUuids.length) {
+        const foundUuids = new Set(fetchedExistingTags.map((tag) => tag.uuid));
         const missingUuids = existingTagUuids.filter(
           (uuid) => !foundUuids.has(uuid),
         );
@@ -127,16 +142,21 @@ export class TagService {
         );
       }
 
-      let createdTags: NewTagEntity[] = [];
+      let newlyCreatedTags: NewTagEntity[] = [];
 
-      if (newTags.length > 0) {
-        createdTags = await this.bulkCreateTags(
-          { projectUuid, tags: newTags },
+      if (newTagDtos.length > 0) {
+        newlyCreatedTags = await this.bulkCreateTags(
+          { projectUuid, tags: newTagDtos },
           queryRunner,
         );
       }
 
-      const allTags = [...existingTags, ...createdTags];
+      // Combine all found and created tags
+      const allTags = [
+        ...fetchedExistingTags,
+        ...newlyCreatedTags,
+        ...directlyFetchedTags,
+      ];
 
       return allTags;
     } catch (error) {