diff --git a/apps/example/e2e/datetimepicker.spec.ts b/apps/example/e2e/datetimepicker.spec.ts
new file mode 100644
index 00000000..09ad458c
--- /dev/null
+++ b/apps/example/e2e/datetimepicker.spec.ts
@@ -0,0 +1,58 @@
+import { expect, test } from '@playwright/test';
+
+test.describe('datetimepicker inside parent menu', () => {
+  test.beforeEach(async ({ page }) => {
+    await page.goto('/datetimepickers');
+  });
+
+  test.afterEach(async ({ page }) => {
+    await page.keyboard.press('Escape');
+    await page.keyboard.press('Escape');
+    await page.keyboard.press('Escape');
+  });
+
+  test('parent menu stays open while calendar sub-menu is open and click-outside fires', async ({ page }) => {
+    await page.getByTestId('parent-menu-activator').click();
+    const parentContent = page.getByTestId('parent-menu-content');
+    await expect(parentContent).toBeVisible();
+
+    // Open the date-time picker (its own RuiMenu)
+    await parentContent.getByRole('textbox').click();
+
+    // Open the calendar's teleported month/year sub-menu by clicking the header title
+    await page.getByTestId('header-title').click();
+
+    // Click somewhere outside the calendar sub-menu but on the page body —
+    // because the picker exposes menu-open and the page binds :persistent to it,
+    // the parent menu must NOT close.
+    await page.mouse.click(5, 5);
+
+    await expect(parentContent).toBeVisible();
+  });
+
+  test('parent menu stays open while only the picker menu is open and click-outside fires', async ({ page }) => {
+    await page.getByTestId('parent-menu-activator').click();
+    const parentContent = page.getByTestId('parent-menu-content');
+    await expect(parentContent).toBeVisible();
+
+    // Open the picker but do NOT open the calendar's year/month sub-menu
+    await parentContent.getByRole('textbox').click();
+
+    // Click outside — picker exposes menu-open while its own menu is open,
+    // so parent stays open.
+    await page.mouse.click(5, 5);
+
+    await expect(parentContent).toBeVisible();
+  });
+
+  test('parent menu closes on outside click when no picker overlay is open', async ({ page }) => {
+    await page.getByTestId('parent-menu-activator').click();
+    const parentContent = page.getByTestId('parent-menu-content');
+    await expect(parentContent).toBeVisible();
+
+    // Click outside without opening the picker / calendar sub-menu
+    await page.mouse.click(5, 5);
+
+    await expect(parentContent).toBeHidden();
+  });
+});
diff --git a/apps/example/src/views/DateTimePickerView.vue b/apps/example/src/views/DateTimePickerView.vue
index 199ce732..7b58afc8 100644
--- a/apps/example/src/views/DateTimePickerView.vue
+++ b/apps/example/src/views/DateTimePickerView.vue
@@ -1,6 +1,6 @@
 <script setup lang="ts">
 import type { ExtractPropTypes } from 'vue';
-import { RuiDateTimePicker } from '@rotki/ui-library';
+import { RuiButton, RuiDateTimePicker, RuiMenu } from '@rotki/ui-library';
 import { objectOmit } from '@vueuse/shared';
 import ComponentView from '@/components/ComponentView.vue';
 
@@ -9,6 +9,10 @@ type RuiDateTimePickerProps = ExtractPropTypes<typeof RuiDateTimePicker['props']
 const timePickers = ref<RuiDateTimePickerProps[]>([{
   modelValue: new Date(2023, 0, 2, 20, 20),
 }]);
+
+const parentMenuOpen = ref<boolean>(false);
+const pickerMenuOpen = ref<boolean>(false);
+const insideMenuValue = ref<Date | undefined>(new Date(2023, 0, 2, 20, 20));
 </script>
 
 <template>
@@ -24,5 +28,38 @@ const timePickers = ref<RuiDateTimePickerProps[]>([{
         v-bind="objectOmit(field, ['modelValue'])"
       />
     </div>
+    <div
+      class="mt-8"
+      data-id="picker-inside-menu-section"
+    >
+      <h3 class="text-lg font-semibold mb-4">
+        Inside Parent Menu
+      </h3>
+      <RuiMenu
+        v-model="parentMenuOpen"
+        :persistent="pickerMenuOpen"
+        :close-on-content-click="false"
+      >
+        <template #activator="{ attrs }">
+          <RuiButton
+            v-bind="attrs"
+            data-id="parent-menu-activator"
+          >
+            Open parent menu
+          </RuiButton>
+        </template>
+        <div
+          class="p-4 w-[360px]"
+          data-id="parent-menu-content"
+        >
+          <RuiDateTimePicker
+            v-model="insideMenuValue"
+            v-model:menu-open="pickerMenuOpen"
+            data-id="picker-inside-menu"
+            variant="outlined"
+          />
+        </div>
+      </RuiMenu>
+    </div>
   </ComponentView>
 </template>
diff --git a/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.spec.ts b/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.spec.ts
index 7d30b72c..a6c4740b 100644
--- a/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.spec.ts
+++ b/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.spec.ts
@@ -2377,4 +2377,53 @@ describe('components/date-time-picker/RuiDateTimePicker.vue', () => {
       expect(wrapper.text()).toContain('This hint should be visible');
     });
   });
+
+  describe('menu-open model', () => {
+    it('emits update:menuOpen when the picker menu opens and closes', async () => {
+      wrapper = createWrapper({
+        props: {
+          modelValue: new Date(),
+        },
+      });
+
+      await vi.runOnlyPendingTimersAsync();
+      await wrapper.find('[data-id="activator"]').trigger('click');
+      await vi.runOnlyPendingTimersAsync();
+
+      let events = wrapper.emitted('update:menuOpen');
+      expect(events?.at(-1)).toEqual([true]);
+
+      await wrapper.find('[data-id="append"]').trigger('click');
+      await vi.runOnlyPendingTimersAsync();
+
+      events = wrapper.emitted('update:menuOpen');
+      expect(events?.at(-1)).toEqual([false]);
+    });
+
+    it('stays open while the calendar sub-menu opens after the picker is open', async () => {
+      wrapper = createWrapper({
+        props: {
+          modelValue: new Date(),
+        },
+      });
+
+      await vi.runOnlyPendingTimersAsync();
+      await wrapper.find('[data-id="activator"]').trigger('click');
+      await vi.runOnlyPendingTimersAsync();
+
+      const menu = wrapper.findComponent({ name: 'RuiDateTimePickerMenu' });
+      assert(menu.exists());
+
+      menu.vm.$emit('update:calendarMenuOpen', true);
+      await nextTick();
+      await vi.runOnlyPendingTimersAsync();
+      const menuAfter = wrapper.findComponent({ name: 'RuiDateTimePickerMenu' });
+      menuAfter.vm.$emit('update:calendarMenuOpen', false);
+      await nextTick();
+      await vi.runOnlyPendingTimersAsync();
+
+      const events = wrapper.emitted('update:menuOpen');
+      expect(events?.every(e => e[0] === true)).toBe(true);
+    });
+  });
 });
diff --git a/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.stories.ts b/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.stories.ts
index 0082a30e..fa74b72f 100644
--- a/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.stories.ts
+++ b/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.stories.ts
@@ -1,5 +1,7 @@
 import type { ComponentPropsAndSlots } from '@storybook/vue3-vite';
 import { expect, waitFor, within } from 'storybook/test';
+import RuiButton from '@/components/buttons/button/RuiButton.vue';
+import RuiMenu from '@/components/overlays/menu/RuiMenu.vue';
 import { TimeAccuracy } from '@/consts/time-accuracy';
 import preview from '~/.storybook/preview';
 import RuiDateTimePicker from './RuiDateTimePicker.vue';
@@ -174,4 +176,33 @@ export const Required = meta.story({
   },
 });
 
+export const InsideParentMenu = meta.story({
+  args: {
+    modelValue: new Date(),
+    variant: 'outlined',
+  },
+  render: args => ({
+    components: { RuiButton, RuiDateTimePicker, RuiMenu },
+    setup() {
+      const open = ref<boolean>(false);
+      const pickerMenuOpen = ref<boolean>(false);
+      return { args, open, pickerMenuOpen };
+    },
+    template: `<div class="p-8">
+      <RuiMenu v-model="open" :persistent="pickerMenuOpen" :close-on-content-click="false">
+        <template #activator="{ attrs }">
+          <RuiButton v-bind="attrs">Open parent menu</RuiButton>
+        </template>
+        <div class="p-4 w-[360px]">
+          <RuiDateTimePicker
+            v-bind="args"
+            v-model="args.modelValue"
+            v-model:menu-open="pickerMenuOpen"
+          />
+        </div>
+      </RuiMenu>
+    </div>`,
+  }),
+});
+
 export default meta;
diff --git a/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.vue b/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.vue
index b3f5a2f7..92196499 100644
--- a/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.vue
+++ b/packages/ui-library/src/components/date-time-picker/RuiDateTimePicker.vue
@@ -50,6 +50,7 @@ defineOptions({
 });
 
 const modelValue = defineModel<ModelValueType<DateTimeModelType>>({ required: true });
+const menuOpen = defineModel<boolean>('menuOpen', { default: false });
 
 const {
   disabled = false,
@@ -284,6 +285,12 @@ function arrowClicked(event: MouseEvent): void {
     event.stopPropagation();
   }
 }
+
+const anyMenuOpen = computed<boolean>(() => get(isOpen) || get(calendarMenuOpen));
+
+watch(anyMenuOpen, (value) => {
+  set(menuOpen, value);
+});
 </script>
 
 <template>