diff --git a/workspaces/lightspeed/.changeset/chilled-carrots-boil.md b/workspaces/lightspeed/.changeset/chilled-carrots-boil.md
new file mode 100644
index 0000000000..2fa296dc4a
--- /dev/null
+++ b/workspaces/lightspeed/.changeset/chilled-carrots-boil.md
@@ -0,0 +1,8 @@
+---
+'@red-hat-developer-hub/backstage-plugin-lightspeed': patch
+---
+
+Fix MCP settings panel and options dropdown behavior:
+
+- Keep MCP settings panel open during navigation in fullscreen mode
+- Prevent options dropdown from auto-focusing first item on open
diff --git a/workspaces/lightspeed/plugins/lightspeed/src/components/LightSpeedChat.tsx b/workspaces/lightspeed/plugins/lightspeed/src/components/LightSpeedChat.tsx
index a5e7350270..fbeae27632 100644
--- a/workspaces/lightspeed/plugins/lightspeed/src/components/LightSpeedChat.tsx
+++ b/workspaces/lightspeed/plugins/lightspeed/src/components/LightSpeedChat.tsx
@@ -1111,7 +1111,9 @@ export const LightspeedChat = ({
 
   const onNewChat = useCallback(() => {
     (async () => {
-      setIsMcpSettingsOpen(false);
+      if (!isFullscreenMode) {
+        setIsMcpSettingsOpen(false);
+      }
       if (conversationId !== TEMP_CONVERSATION_ID) {
         setMessages([]);
         setFileContents([]);
@@ -1342,7 +1344,9 @@ export const LightspeedChat = ({
 
   const onSelectActiveItem = useCallback(
     (_: MouseEvent | undefined, selectedItem: string | number | undefined) => {
-      setIsMcpSettingsOpen(false);
+      if (!isFullscreenMode) {
+        setIsMcpSettingsOpen(false);
+      }
       setNewChatCreated(false);
       const newConvId = String(selectedItem);
       setConversationId((c_id: string) => {
@@ -1365,6 +1369,7 @@ export const LightspeedChat = ({
       scrollToBottomRef,
       setCurrentConversationId,
       setIsMcpSettingsOpen,
+      isFullscreenMode,
     ],
   );
 
@@ -1779,7 +1784,9 @@ export const LightspeedChat = ({
               selectedModel={selectedModel}
               models={models}
               onSelect={item => {
-                setIsMcpSettingsOpen(false);
+                if (!isFullscreenMode) {
+                  setIsMcpSettingsOpen(false);
+                }
                 onNewChat();
                 handleSelectedModel(item);
               }}
@@ -1947,7 +1954,9 @@ export const LightspeedChat = ({
           <LightspeedChatBoxHeader
             selectedModel={selectedModel}
             handleSelectedModel={item => {
-              setIsMcpSettingsOpen(false);
+              if (!isFullscreenMode) {
+                setIsMcpSettingsOpen(false);
+              }
               onNewChat();
               handleSelectedModel(item);
             }}
diff --git a/workspaces/lightspeed/plugins/lightspeed/src/components/LightspeedChatBoxHeader.tsx b/workspaces/lightspeed/plugins/lightspeed/src/components/LightspeedChatBoxHeader.tsx
index 5762bc4d21..cc18b4cdfb 100644
--- a/workspaces/lightspeed/plugins/lightspeed/src/components/LightspeedChatBoxHeader.tsx
+++ b/workspaces/lightspeed/plugins/lightspeed/src/components/LightspeedChatBoxHeader.tsx
@@ -176,6 +176,7 @@ export const LightspeedChatBoxHeader = ({
       <ChatbotHeaderOptionsDropdown
         className={styles.dropdown}
         isCompact
+        shouldFocusFirstItemOnOpen={false}
         toggleProps={{
           'aria-label': t('aria.options.label'),
           className: styles.optionsToggle,