diff --git a/.changeset/soft-numbers-divide.md b/.changeset/soft-numbers-divide.md
new file mode 100644
index 00000000000..d9acd78bf28
--- /dev/null
+++ b/.changeset/soft-numbers-divide.md
@@ -0,0 +1,5 @@
+---
+'@razorpay/blade': patch
+---
+
+fix(blade): remove file icon aligment while uploading
diff --git a/packages/blade/src/components/FileUpload/FileUploadItem.tsx b/packages/blade/src/components/FileUpload/FileUploadItem.tsx
index b3854a47728..2f86e51edc8 100644
--- a/packages/blade/src/components/FileUpload/FileUploadItem.tsx
+++ b/packages/blade/src/components/FileUpload/FileUploadItem.tsx
@@ -76,7 +76,7 @@ const FileUploadItem = memo(
               </Text>
             </BaseBox>
             {status === 'uploading' ? (
-              <BaseBox>
+              <BaseBox display="flex" alignItems="center">
                 <IconButton
                   accessibilityLabel="Remove File"
                   icon={CloseIcon}