diff --git a/src/elements/toolbar.js b/src/elements/toolbar.js
index 366e3c360..215f83aa2 100644
--- a/src/elements/toolbar.js
+++ b/src/elements/toolbar.js
@@ -134,13 +134,15 @@ export class LexicalToolbarElement extends HTMLElement {
     }
   }
 
-  #dispatchButtonCommand(event, { dataset: { command, payload } }) {
+  #dispatchButtonCommand(event, button) {
+    const { command, payload } = button.dataset
     const isKeyboard = event instanceof PointerEvent && event.pointerId === -1
 
     this.editor.update(() => {
       this.editor.dispatchCommand(command, payload)
     }, { tag: isKeyboard ? SKIP_DOM_SELECTION_TAG : undefined })
 
+    if (button.closest(".lexxy-editor__toolbar-dropdown")) this.closeDropdowns()
     if (!isKeyboard) this.editor.focus()
   }
 
@@ -200,14 +202,23 @@ export class LexicalToolbarElement extends HTMLElement {
   }
 
   #monitorSelectionChanges() {
-    this.#listeners.track(this.editor.registerUpdateListener(({ editorState }) => {
-      editorState.read(() => {
-        this.#updateButtonStates()
-        this.closeDropdowns()
-      })
+    this.#listeners.track(this.editor.registerUpdateListener(({ editorState, prevEditorState }) => {
+      editorState.read(() => this.#updateButtonStates())
+      if (this.#selectionChanged(editorState, prevEditorState)) this.closeDropdowns()
     }))
   }
 
+  #selectionChanged(editorState, prevEditorState) {
+    const selection = editorState.read($getSelection)
+    const previousSelection = prevEditorState.read($getSelection)
+
+    if (selection === null || previousSelection === null) {
+      return selection !== previousSelection
+    } else {
+      return !selection.is(previousSelection)
+    }
+  }
+
   #monitorHistoryChanges() {
     this.#listeners.track(
       this.editor.registerCommand(CAN_UNDO_COMMAND, (enabled) => { this.#setButtonDisabled("undo", !enabled) }, COMMAND_PRIORITY_LOW),
diff --git a/test/browser/tests/formatting/toolbar.test.js b/test/browser/tests/formatting/toolbar.test.js
index d0577f44d..ea124db84 100644
--- a/test/browser/tests/formatting/toolbar.test.js
+++ b/test/browser/tests/formatting/toolbar.test.js
@@ -223,6 +223,45 @@ test.describe("Toolbar", () => {
     expect(accept).toBeNull()
   })
 
+  test("dropdown stays open during editor updates that do not change the selection", async ({ page, editor }) => {
+    await editor.setValue(HELLO_EVERYONE)
+
+    const formatPanel = page.locator("lexxy-toolbar-dropdown.lexxy-editor__toolbar-dropdown [data-dropdown-panel]").first()
+
+    await page.locator("lexxy-toolbar button[name='format']").click()
+    await expect(formatPanel).toBeVisible()
+
+    // Simulate an upload-driven update: content mutates but the selection is untouched,
+    // the same way upload progress / placeholder mutations fire while a dropdown is open.
+    await page.evaluate(async () => {
+      const element = document.querySelector("lexxy-editor")
+      await new Promise((resolve) => {
+        element.editor.update(() => {
+          const editorState = element.editor._pendingEditorState
+          const root = editorState._nodeMap.get("root")
+          const paragraph = editorState._nodeMap.get(root.__first)
+          const textNode = editorState._nodeMap.get(paragraph.__first)
+          textNode.setTextContent("Hello everyone uploading…")
+        }, { onUpdate: resolve })
+      })
+    })
+
+    await expect(formatPanel).toBeVisible()
+  })
+
+  test("dropdown closes when the selection changes", async ({ page, editor }) => {
+    await editor.setValue(HELLO_EVERYONE)
+
+    const formatPanel = page.locator("lexxy-toolbar-dropdown.lexxy-editor__toolbar-dropdown [data-dropdown-panel]").first()
+
+    await page.locator("lexxy-toolbar button[name='format']").click()
+    await expect(formatPanel).toBeVisible()
+
+    await editor.select("everyone")
+
+    await expect(formatPanel).toBeHidden()
+  })
+
   test("external toolbar", async ({ page }) => {
     await page.goto("/toolbar-external.html")
     await expect(