Hi Shruti Pillai,

On your Dropdown widget, you have a property called Option Content. By default, the value selected is Text Only, which will make the options render in a browser-native experience:

You can change the value of Option Content to Custom, and now you will be able to define how each row will look, including adding other widgets:

This will turn the dropdown widget in a placeholder where you can drag the widgets and how you want each row to look like:

Kind Regards,
João

Hello

To achieve this you need to create a custom dropdown or use the one available in the forge

One example here - https://www.w3schools.com/howto/tryit.asp?filename=tryhow_custom_select

Alternative - 

You can use dropdown search or Serverside dropdown for the desired results it already has padding between two options.

Thanks
Tousif Khan

Hi Shruti

 After changing Options Content: text only to custom use the below CSS class to give padding as you want.

.dropdown-container .dropdown-popup-row {

padding: 16px 32px;

}