diff --git a/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workflow-list/components/context-menu/context-menu.tsx b/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workflow-list/components/context-menu/context-menu.tsx
index 6be102415c..d633e5a70b 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workflow-list/components/context-menu/context-menu.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workflow-list/components/context-menu/context-menu.tsx
@@ -268,14 +268,7 @@ export function ContextMenu({
           height: '1px',
         }}
       />
-      <PopoverContent
-        ref={menuRef}
-        align='start'
-        side='bottom'
-        sideOffset={4}
-        onPointerDownOutside={(e) => e.preventDefault()}
-        onInteractOutside={(e) => e.preventDefault()}
-      >
+      <PopoverContent ref={menuRef} align='start' side='bottom' sideOffset={4}>
         {/* Back button - shown only when in a folder */}
         <PopoverBackButton />
 
diff --git a/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workspace-header/workspace-header.tsx b/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workspace-header/workspace-header.tsx
index fc9f2563fd..9dc273c4ea 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workspace-header/workspace-header.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workspace-header/workspace-header.tsx
@@ -211,10 +211,11 @@ export function WorkspaceHeader({
   }
 
   /**
-   * Close context menu
+   * Close context menu and the workspace dropdown
    */
   const closeContextMenu = () => {
     setIsContextMenuOpen(false)
+    setIsWorkspaceMenuOpen(false)
   }
 
   /**