diff --git a/src/components/ChannelListItem/ChannelListItemActionButtons.tsx b/src/components/ChannelListItem/ChannelListItemActionButtons.tsx
index cb8fabcac..0e2f9769a 100644
--- a/src/components/ChannelListItem/ChannelListItemActionButtons.tsx
+++ b/src/components/ChannelListItem/ChannelListItemActionButtons.tsx
@@ -24,6 +24,7 @@ export const ChannelListItemActionButtons: ChannelListItemActionButtonsInterface
   const { channel } = useChannelListItemContext();
   const [referenceElement, setReferenceElement] =
     React.useState<HTMLButtonElement | null>(null);
+  const [isRestoringFocus, setIsRestoringFocus] = React.useState(false);
   const dialogId = ChannelListItemActionButtons.getDialogId({
     // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
     channelId: channel.id!,
@@ -31,6 +32,26 @@ export const ChannelListItemActionButtons: ChannelListItemActionButtonsInterface
   const { dialog, dialogManager } = useDialogOnNearestManager({ id: dialogId });
   const dialogIsOpen = useDialogIsOpen(dialogId, dialogManager?.id);
 
+  const closeContextMenu = React.useCallback(() => {
+    setIsRestoringFocus(true);
+    dialog?.close();
+
+    requestAnimationFrame(() => {
+      if (!referenceElement?.isConnected) {
+        setIsRestoringFocus(false);
+        return;
+      }
+
+      referenceElement.focus();
+
+      requestAnimationFrame(() => {
+        if (document.activeElement !== referenceElement) {
+          setIsRestoringFocus(false);
+        }
+      });
+    });
+  }, [dialog, referenceElement]);
+
   const filteredActionSet = useBaseChannelActionSetFilter(defaultChannelActionSet);
   const { dropdownActionSet, quickActionSet, quickDropdownToggleAction } =
     useSplitActionSet(filteredActionSet);
@@ -43,9 +64,13 @@ export const ChannelListItemActionButtons: ChannelListItemActionButtonsInterface
   return (
     <div
       className={clsx('str-chat__channel-list-item__action-buttons', {
-        'str-chat__channel-list-item__action-buttons--active': dialogIsOpen,
+        'str-chat__channel-list-item__action-buttons--active':
+          dialogIsOpen || isRestoringFocus,
       })}
       data-testid='channel-list-item-action-buttons'
+      onFocusCapture={() => {
+        setIsRestoringFocus(false);
+      }}
     >
       {quickDropdownToggleAction && dropdownActionSet.length > 0 && (
         <quickDropdownToggleAction.Component ref={setReferenceElement} />
@@ -59,7 +84,7 @@ export const ChannelListItemActionButtons: ChannelListItemActionButtonsInterface
         data-testid='channel-list-item-context-menu'
         dialogManagerId={dialogManager?.id}
         id={dialog.id}
-        onClose={dialog?.close}
+        onClose={closeContextMenu}
         placement='bottom-start'
         referenceElement={referenceElement}
         tabIndex={-1}
diff --git a/src/components/ChannelListItem/ChannelListItemUI.tsx b/src/components/ChannelListItem/ChannelListItemUI.tsx
index e98ad486e..f8d86ef88 100644
--- a/src/components/ChannelListItem/ChannelListItemUI.tsx
+++ b/src/components/ChannelListItem/ChannelListItemUI.tsx
@@ -53,7 +53,6 @@ const UnMemoizedChannelListItemUI = (props: ChannelListItemUIProps) => {
 
   return (
     <div className='str-chat__channel-list-item-container'>
-      <ChannelListItemActionButtons />
       <button
         aria-label={t('aria/Select Channel: {{ channelName }}', {
           channelName: displayTitle || '',
@@ -103,6 +102,7 @@ const UnMemoizedChannelListItemUI = (props: ChannelListItemUIProps) => {
           />
         </div>
       </button>
+      <ChannelListItemActionButtons />
     </div>
   );
 };
diff --git a/src/components/ChannelListItem/__tests__/ChannelListItemActionButtons.defaults.test.tsx b/src/components/ChannelListItem/__tests__/ChannelListItemActionButtons.defaults.test.tsx
index 48506f1b7..1afb3dbc2 100644
--- a/src/components/ChannelListItem/__tests__/ChannelListItemActionButtons.defaults.test.tsx
+++ b/src/components/ChannelListItem/__tests__/ChannelListItemActionButtons.defaults.test.tsx
@@ -814,5 +814,38 @@ describe('ChannelListItemActionButtons defaults', () => {
         expect(toggle).toHaveAttribute('aria-expanded', 'false');
       });
     });
+
+    it('restores focus to the dropdown toggle on Escape', async () => {
+      const { channel, client } = await setupTwoMemberGroupChannel();
+
+      act(() => {
+        render(
+          <Chat client={client}>
+            <ChannelListItem channel={channel} />
+          </Chat>,
+        );
+      });
+
+      const toggle = screen.getByTestId('channel-list-item-dropdown-toggle');
+
+      act(() => {
+        fireEvent.click(toggle);
+      });
+
+      const firstItem = await screen.findByRole('menuitem', { name: 'Archive' });
+      firstItem.focus();
+
+      act(() => {
+        fireEvent.keyDown(firstItem, { key: 'Escape' });
+      });
+
+      await waitFor(() => {
+        expect(screen.queryByRole('menu')).not.toBeInTheDocument();
+      });
+
+      await waitFor(() => {
+        expect(toggle).toHaveFocus();
+      });
+    });
   });
 });
diff --git a/src/components/ChannelListItem/__tests__/ChannelListItemUI.test.tsx b/src/components/ChannelListItem/__tests__/ChannelListItemUI.test.tsx
index 21adc8b57..ce8159a8c 100644
--- a/src/components/ChannelListItem/__tests__/ChannelListItemUI.test.tsx
+++ b/src/components/ChannelListItem/__tests__/ChannelListItemUI.test.tsx
@@ -13,8 +13,10 @@ import {
 
 import type { Channel, StreamChat } from 'stream-chat';
 import { ChannelListItemUI } from '../ChannelListItemUI';
+import type { ChannelListItemUIProps } from '../ChannelListItem';
 import {
   ChatProvider,
+  type ComponentContextValue,
   ComponentProvider,
   DialogManagerProvider,
   TranslationProvider,
@@ -27,6 +29,16 @@ const NoopActionButtons = () => null;
 NoopActionButtons.getDialogId = () => '';
 NoopActionButtons.displayName = 'ChannelListItemActionButtons';
 
+const FocusableActionButtons = () => (
+  <div data-testid='channel-list-item-action-buttons'>
+    <button data-testid='channel-options-button' type='button'>
+      Channel actions
+    </button>
+  </div>
+);
+FocusableActionButtons.getDialogId = () => '';
+FocusableActionButtons.displayName = 'ChannelListItemActionButtons';
+
 const mockTranslation = (key: string, options?: Record<string, unknown>) => {
   const interpolated = Object.entries(options || {}).reduce(
     (value, [name, arg]) => value.replace(`{{ ${name} }}`, String(arg)),
@@ -43,7 +55,10 @@ describe('ChannelPreviewMessenger', () => {
 
   let chatClient: StreamChat;
   let channel: Channel;
-  const renderComponent = (props?: any, componentOverrides = {}) => (
+  const renderComponent = (
+    props?: Partial<ChannelListItemUIProps>,
+    componentOverrides: Partial<ComponentContextValue> = {},
+  ) => (
     <TranslationProvider value={mockTranslationContextValue({ t: mockTranslation })}>
       <ChatProvider value={mockChatContext({ client: chatClient })}>
         <DialogManagerProvider>
@@ -128,6 +143,21 @@ describe('ChannelPreviewMessenger', () => {
     expect(onSelect).toHaveBeenCalledTimes(1);
   });
 
+  it('renders channel actions after the channel item so keyboard users can tab into them', () => {
+    render(
+      renderComponent(undefined, {
+        ChannelListItemActionButtons: FocusableActionButtons,
+      }),
+    );
+
+    const previewButton = screen.getByTestId(PREVIEW_TEST_ID);
+    const actionButton = screen.getByTestId('channel-options-button');
+    expect(
+      previewButton.compareDocumentPosition(actionButton) &
+        Node.DOCUMENT_POSITION_FOLLOWING,
+    ).toBeTruthy();
+  });
+
   describe('pinned', () => {
     it('should not add pinned class or render pin icon when not pinned', () => {
       const { container } = render(renderComponent({ pinned: false }));
diff --git a/src/components/ChannelListItem/styling/ChannelListItem.scss b/src/components/ChannelListItem/styling/ChannelListItem.scss
index 10d61e8c9..8dccfe55e 100644
--- a/src/components/ChannelListItem/styling/ChannelListItem.scss
+++ b/src/components/ChannelListItem/styling/ChannelListItem.scss
@@ -3,6 +3,7 @@
   position: relative;
 
   &:has(.str-chat__channel-list-item__action-buttons--active),
+  &:focus-within,
   &:hover {
     .str-chat__channel-list-item__action-buttons {
       display: flex;