diff --git a/libs/common/src/modules/space-model/entities/tag-model.entity.ts b/libs/common/src/modules/space-model/entities/tag-model.entity.ts
index 3f7805c..e2a70ee 100644
--- a/libs/common/src/modules/space-model/entities/tag-model.entity.ts
+++ b/libs/common/src/modules/space-model/entities/tag-model.entity.ts
@@ -1,11 +1,4 @@
-import {
-  Column,
-  Entity,
-  JoinColumn,
-  ManyToOne,
-  OneToMany,
-  Unique,
-} from 'typeorm';
+import { Column, Entity, JoinColumn, ManyToOne, OneToMany } from 'typeorm';
 import { AbstractEntity } from '../../abstract/entities/abstract.entity';
 import { TagModelDto } from '../dtos/tag-model.dto';
 import { SpaceModelEntity } from './space-model.entity';
@@ -14,7 +7,6 @@ import { ProductEntity } from '../../product/entities';
 import { TagEntity } from '../../space/entities/tag.entity';
 
 @Entity({ name: 'tag_model' })
-@Unique(['tag', 'product', 'spaceModel', 'subspaceModel'])
 export class TagModel extends AbstractEntity<TagModelDto> {
   @Column({ type: 'varchar', length: 255 })
   tag: string;
diff --git a/src/space-model/dtos/tag-model-dtos/create-tag-model.dto.ts b/src/space-model/dtos/tag-model-dtos/create-tag-model.dto.ts
index 5f4ec66..c271eef 100644
--- a/src/space-model/dtos/tag-model-dtos/create-tag-model.dto.ts
+++ b/src/space-model/dtos/tag-model-dtos/create-tag-model.dto.ts
@@ -1,5 +1,5 @@
-import { ApiProperty } from '@nestjs/swagger';
-import { IsNotEmpty, IsString } from 'class-validator';
+import { ApiProperty, ApiPropertyOptional } from '@nestjs/swagger';
+import { IsNotEmpty, IsOptional, IsString } from 'class-validator';
 
 export class CreateTagModelDto {
   @ApiProperty({
@@ -10,6 +10,14 @@ export class CreateTagModelDto {
   @IsString()
   tag: string;
 
+  @ApiPropertyOptional({
+    description: 'UUID of the tag model (required for update/delete)',
+    example: '123e4567-e89b-12d3-a456-426614174000',
+  })
+  @IsOptional()
+  @IsString()
+  uuid?: string;
+
   @ApiProperty({
     description: 'ID of the product associated with the tag',
     example: '123e4567-e89b-12d3-a456-426614174000',
diff --git a/src/space-model/services/space-model.service.ts b/src/space-model/services/space-model.service.ts
index 5ef531c..05906ca 100644
--- a/src/space-model/services/space-model.service.ts
+++ b/src/space-model/services/space-model.service.ts
@@ -177,7 +177,6 @@ export class SpaceModelService {
 
   async update(dto: UpdateSpaceModelDto, param: SpaceModelParam) {
     const queryRunner = this.dataSource.createQueryRunner();
-
     await this.validateProject(param.projectUuid);
     const spaceModel = await this.validateSpaceModel(param.spaceModelUuid);
     await queryRunner.connect();
@@ -201,10 +200,20 @@ export class SpaceModelService {
         );
       }
 
+      const spaceTagsAfterMove = this.tagModelService.getSubspaceTagsToBeAdded(
+        dto.tags,
+        dto.subspaceModels,
+      );
+
+      const modifiedSubspaces = this.tagModelService.getModifiedSubspaces(
+        dto.tags,
+        dto.subspaceModels,
+      );
+
       if (dto.subspaceModels) {
         modifiedSubspaceModels =
           await this.subSpaceModelService.modifySubSpaceModels(
-            dto.subspaceModels,
+            modifiedSubspaces,
             spaceModel,
             queryRunner,
           );
@@ -212,9 +221,10 @@ export class SpaceModelService {
 
       if (dto.tags) {
         modifiedTagsModelPayload = await this.tagModelService.modifyTags(
-          dto.tags,
+          spaceTagsAfterMove,
           queryRunner,
           spaceModel,
+          null,
         );
       }
 
@@ -236,7 +246,6 @@ export class SpaceModelService {
       });
     } catch (error) {
       await queryRunner.rollbackTransaction();
-
       if (error instanceof HttpException) {
         throw error;
       }
diff --git a/src/space-model/services/subspace/subspace-model.service.ts b/src/space-model/services/subspace/subspace-model.service.ts
index f309856..dd3fe91 100644
--- a/src/space-model/services/subspace/subspace-model.service.ts
+++ b/src/space-model/services/subspace/subspace-model.service.ts
@@ -50,8 +50,7 @@ export class SubSpaceModelService {
           const otherDtoTags = subSpaceModelDtos
             .filter((_, i) => i !== index)
             .flatMap((otherDto) => otherDto.tags || []);
-
-          if (dto.tags?.length) {
+          if (dto.tags && dto.tags.length > 0) {
             subspace.tags = await this.tagModelService.createTags(
               dto.tags,
               queryRunner,
@@ -174,6 +173,7 @@ export class SubSpaceModelService {
       const createTagDtos: CreateTagModelDto[] =
         subspace.tags?.map((tag) => ({
           tag: tag.tag,
+          uuid: tag.uuid,
           productUuid: tag.productUuid,
         })) || [];
 
diff --git a/src/space-model/services/tag-model.service.ts b/src/space-model/services/tag-model.service.ts
index 14f2cf2..0f77b3d 100644
--- a/src/space-model/services/tag-model.service.ts
+++ b/src/space-model/services/tag-model.service.ts
@@ -6,7 +6,11 @@ import {
 } from '@app/common/modules/space-model/entities';
 import { SubspaceModelEntity } from '@app/common/modules/space-model/entities';
 import { TagModelRepository } from '@app/common/modules/space-model';
-import { CreateTagModelDto, ModifyTagModelDto } from '../dtos';
+import {
+  CreateTagModelDto,
+  ModifySubspaceModelDto,
+  ModifyTagModelDto,
+} from '../dtos';
 import { ProductService } from 'src/product/services';
 import { ModifyAction } from '@app/common/constants/modify-action.enum';
 import { ModifiedTagsModelPayload } from '../interfaces';
@@ -24,6 +28,7 @@ export class TagModelService {
     spaceModel?: SpaceModelEntity,
     subspaceModel?: SubspaceModelEntity,
     additionalTags?: CreateTagModelDto[],
+    tagsToDelete?: ModifyTagModelDto[],
   ): Promise<TagModel[]> {
     if (!tags.length) {
       throw new HttpException('Tags cannot be empty.', HttpStatus.BAD_REQUEST);
@@ -39,11 +44,63 @@ export class TagModelService {
       );
     }
 
+    const tagEntitiesToCreate = tags.filter((tagDto) => tagDto.uuid === null);
+    const tagEntitiesToUpdate = tags.filter((tagDto) => tagDto.uuid !== null);
+
+    try {
+      const createdTags = await this.bulkSaveTags(
+        tagEntitiesToCreate,
+        queryRunner,
+        spaceModel,
+        subspaceModel,
+        tagsToDelete,
+      );
+
+      // Update existing tags
+      const updatedTags = await this.moveTags(
+        tagEntitiesToUpdate,
+        queryRunner,
+        spaceModel,
+        subspaceModel,
+      );
+
+      // Combine created and updated tags
+      return [...createdTags, ...updatedTags];
+    } catch (error) {
+      if (error instanceof HttpException) {
+        throw error;
+      }
+
+      throw new HttpException(
+        `Failed to create tag models due to an unexpected error.: ${error}`,
+        HttpStatus.INTERNAL_SERVER_ERROR,
+      );
+    }
+  }
+
+  async bulkSaveTags(
+    tags: CreateTagModelDto[],
+    queryRunner: QueryRunner,
+    spaceModel?: SpaceModelEntity,
+    subspaceModel?: SubspaceModelEntity,
+    tagsToDelete?: ModifyTagModelDto[],
+  ): Promise<TagModel[]> {
+    if (!tags.length) {
+      return [];
+    }
+
     const tagEntities = await Promise.all(
-      tags.map(async (tagDto) =>
-        this.prepareTagEntity(tagDto, queryRunner, spaceModel, subspaceModel),
+      tags.map((tagDto) =>
+        this.prepareTagEntity(
+          tagDto,
+          queryRunner,
+          spaceModel,
+          subspaceModel,
+          tagsToDelete,
+        ),
       ),
     );
+
     try {
       return await queryRunner.manager.save(tagEntities);
     } catch (error) {
@@ -52,7 +109,66 @@ export class TagModelService {
       }
 
       throw new HttpException(
-        'Failed to save tag models due to an unexpected error.',
+        `Failed to save tag models due to an unexpected error: ${error.message}`,
+        HttpStatus.INTERNAL_SERVER_ERROR,
+      );
+    }
+  }
+
+  async moveTags(
+    tags: CreateTagModelDto[],
+    queryRunner: QueryRunner,
+    spaceModel?: SpaceModelEntity,
+    subspaceModel?: SubspaceModelEntity,
+  ): Promise<TagModel[]> {
+    if (!tags.length) {
+      return [];
+    }
+
+    try {
+      return await Promise.all(
+        tags.map(async (tagDto) => {
+          try {
+            const tag = await this.getTagByUuid(tagDto.uuid);
+            if (!tag) {
+              throw new HttpException(
+                `Tag with UUID ${tagDto.uuid} not found.`,
+                HttpStatus.NOT_FOUND,
+              );
+            }
+
+            if (subspaceModel && subspaceModel.spaceModel) {
+              await queryRunner.manager.update(
+                this.tagModelRepository.target,
+                { uuid: tag.uuid },
+                { subspaceModel, spaceModel: null },
+              );
+              tag.subspaceModel = subspaceModel;
+            }
+
+            if (subspaceModel === null && spaceModel) {
+              await queryRunner.manager.update(
+                this.tagModelRepository.target,
+                { uuid: tag.uuid },
+                { subspaceModel: null, spaceModel: spaceModel },
+              );
+              tag.subspaceModel = null;
+              tag.spaceModel = spaceModel;
+            }
+
+            return tag;
+          } catch (error) {
+            console.error(
+              `Error moving tag with UUID ${tagDto.uuid}: ${error.message}`,
+            );
+            throw error; // Re-throw the error to propagate it to the parent Promise.all
+          }
+        }),
+      );
+    } catch (error) {
+      console.error(`Error in moveTags: ${error.message}`);
+      throw new HttpException(
+        `Failed to move tags due to an unexpected error: ${error.message}`,
         HttpStatus.INTERNAL_SERVER_ERROR,
       );
     }
@@ -149,10 +265,15 @@ export class TagModelService {
       deleted: [],
     };
     try {
+      const tagsToDelete = tags.filter(
+        (tag) => tag.action === ModifyAction.DELETE,
+      );
+
       for (const tag of tags) {
         if (tag.action === ModifyAction.ADD) {
           const createTagDto: CreateTagModelDto = {
             tag: tag.tag as string,
+            uuid: tag.uuid,
             productUuid: tag.productUuid as string,
           };
 
@@ -161,6 +282,8 @@ export class TagModelService {
             queryRunner,
             spaceModel,
             subspaceModel,
+            null,
+            tagsToDelete,
           );
           modifiedTagModels.added.push(...newModel);
         } else if (tag.action === ModifyAction.UPDATE) {
@@ -202,9 +325,11 @@ export class TagModelService {
     tag: string,
     productUuid: string,
     spaceModel: SpaceModelEntity,
+    tagsToDelete?: ModifyTagModelDto[],
   ): Promise<void> {
     try {
-      const tagExists = await this.tagModelRepository.exists({
+      // Query to find existing tags
+      const tagExists = await this.tagModelRepository.find({
         where: [
           {
             tag,
@@ -221,7 +346,16 @@ export class TagModelService {
         ],
       });
 
-      if (tagExists) {
+      // Remove tags that are marked for deletion
+      const filteredTagExists = tagExists.filter(
+        (existingTag) =>
+          !tagsToDelete?.some(
+            (deleteTag) => deleteTag.uuid === existingTag.uuid,
+          ),
+      );
+
+      // If any tags remain, throw an exception
+      if (filteredTagExists.length > 0) {
         throw new HttpException(
           `Tag ${tag} can't be reused`,
           HttpStatus.CONFLICT,
@@ -231,6 +365,7 @@ export class TagModelService {
       if (error instanceof HttpException) {
         throw error;
       }
+      console.error(`Error while checking tag reuse: ${error.message}`);
       throw new HttpException(
         `An error occurred while checking tag reuse: ${error.message}`,
         HttpStatus.INTERNAL_SERVER_ERROR,
@@ -243,6 +378,7 @@ export class TagModelService {
     queryRunner: QueryRunner,
     spaceModel?: SpaceModelEntity,
     subspaceModel?: SubspaceModelEntity,
+    tagsToDelete?: ModifyTagModelDto[],
   ): Promise<TagModel> {
     try {
       const product = await this.productService.findOne(tagDto.productUuid);
@@ -255,7 +391,12 @@ export class TagModelService {
       }
 
       if (spaceModel) {
-        await this.checkTagReuse(tagDto.tag, tagDto.productUuid, spaceModel);
+        await this.checkTagReuse(
+          tagDto.tag,
+          tagDto.productUuid,
+          spaceModel,
+          tagsToDelete,
+        );
       } else if (subspaceModel && subspaceModel.spaceModel) {
         await this.checkTagReuse(
           tagDto.tag,
@@ -268,12 +409,14 @@ export class TagModelService {
           HttpStatus.BAD_REQUEST,
         );
       }
+      const tagSpace =
+        spaceModel !== null ? spaceModel : subspaceModel.spaceModel;
 
       return queryRunner.manager.create(TagModel, {
         tag: tagDto.tag,
         product: product.data,
-        spaceModel,
-        subspaceModel,
+        spaceModel: tagSpace,
+        subspaceModel: subspaceModel,
       });
     } catch (error) {
       if (error instanceof HttpException) {
@@ -333,4 +476,73 @@ export class TagModelService {
 
     return existingTag;
   }
+
+  getSubspaceTagsToBeAdded(
+    spaceTags: ModifyTagModelDto[],
+    subspaceModels: ModifySubspaceModelDto[],
+  ): ModifyTagModelDto[] {
+    if (!subspaceModels || subspaceModels.length === 0) {
+      return spaceTags;
+    }
+
+    const spaceTagsToDelete = spaceTags.filter(
+      (tag) => tag.action === 'delete',
+    );
+
+    const tagsToAdd = subspaceModels.flatMap(
+      (subspace) => subspace.tags?.filter((tag) => tag.action === 'add') || [],
+    );
+
+    const commonTagUuids = new Set(
+      tagsToAdd
+        .filter((tagToAdd) =>
+          spaceTagsToDelete.some(
+            (tagToDelete) => tagToAdd.uuid === tagToDelete.uuid,
+          ),
+        )
+        .map((tag) => tag.uuid),
+    );
+
+    const remainingTags = spaceTags.filter(
+      (tag) => !commonTagUuids.has(tag.uuid), // Exclude tags in commonTagUuids
+    );
+
+    return remainingTags;
+  }
+
+  getModifiedSubspaces(
+    spaceTags: ModifyTagModelDto[],
+    subspaceModels: ModifySubspaceModelDto[],
+  ): ModifySubspaceModelDto[] {
+    if (!subspaceModels || subspaceModels.length === 0) {
+      return [];
+    }
+
+    // Extract tags marked for addition in spaceTags
+    const spaceTagsToAdd = spaceTags.filter((tag) => tag.action === 'add');
+
+    // Find UUIDs of tags that are common between spaceTagsToAdd and subspace tags marked for deletion
+    const commonTagUuids = new Set(
+      spaceTagsToAdd
+        .flatMap((tagToAdd) =>
+          subspaceModels.flatMap(
+            (subspace) =>
+              subspace.tags?.filter(
+                (tagToDelete) =>
+                  tagToDelete.action === 'delete' &&
+                  tagToAdd.uuid === tagToDelete.uuid,
+              ) || [],
+          ),
+        )
+        .map((tag) => tag.uuid),
+    );
+
+    // Modify subspaceModels by removing tags with UUIDs present in commonTagUuids
+    const modifiedSubspaces = subspaceModels.map((subspace) => ({
+      ...subspace,
+      tags: subspace.tags?.filter((tag) => !commonTagUuids.has(tag.uuid)) || [],
+    }));
+
+    return modifiedSubspaces;
+  }
 }