diff --git a/src/components/Layout.tsx b/src/components/Layout.tsx
index 4a821a0..f33f94b 100644
--- a/src/components/Layout.tsx
+++ b/src/components/Layout.tsx
@@ -20,6 +20,7 @@ interface LayoutProps {
 export const Layout: Component<LayoutProps> = (props) => {
     const [isSidebarLocked, setIsSidebarLocked] = createSignal(true);
     const [isSidebarPeeking, setIsSidebarPeeking] = createSignal(false);
+    const [isDropdownOpen, setIsDropdownOpen] = createSignal(false);
 
     // Lift selectedNoteId up to Layout so it can be passed to NotesSidebar and NotepadView
     const [selectedNoteId, setSelectedNoteId] = createSignal<string | null>(null);
@@ -64,7 +65,11 @@ export const Layout: Component<LayoutProps> = (props) => {
                     !isSidebarLocked() && (isSidebarPeeking() || (store.isNotepadMode && !selectedNoteId())) && "translate-x-0 shadow-2xl ring-1 ring-border"
                 )}
                 onMouseEnter={() => !isSidebarLocked() && setIsSidebarPeeking(true)}
-                onMouseLeave={() => !isSidebarLocked() && setIsSidebarPeeking(false)}>
+                onMouseLeave={() => {
+                    if (!isSidebarLocked() && !isDropdownOpen()) {
+                        setIsSidebarPeeking(false);
+                    }
+                }}>
 
                 <div class="relative flex-1 flex flex-col min-h-0">
                     {/* Task Sidebar Wrapper */}
@@ -82,6 +87,7 @@ export const Layout: Component<LayoutProps> = (props) => {
                             isPeeking={isSidebarPeeking()}
                             setIsPeeking={setIsSidebarPeeking}
                             isEmbed={true}
+                            onDropdownOpenChange={setIsDropdownOpen}
                         />
                     </div>
 
diff --git a/src/components/Navigation.tsx b/src/components/Navigation.tsx
index 4d63e70..9c9dd04 100644
--- a/src/components/Navigation.tsx
+++ b/src/components/Navigation.tsx
@@ -300,6 +300,7 @@ export const Sidebar: Component<{
     isPeeking: boolean;
     setIsPeeking: (v: boolean) => void;
     isEmbed?: boolean;
+    onDropdownOpenChange?: (open: boolean) => void;
 }> = (props) => {
     const [switcherOpen, setSwitcherOpen] = createSignal(false);
 
@@ -374,7 +375,10 @@ export const Sidebar: Component<{
                     isLocked={props.isLocked}
                     isPeeking={props.isPeeking}
                     setIsPeeking={props.setIsPeeking}
-                    onOpenChange={setSwitcherOpen}
+                    onOpenChange={(open) => {
+                        setSwitcherOpen(open);
+                        props.onDropdownOpenChange?.(open);
+                    }}
                 />
             </div>