diff --git a/packages/app/e2e/browser/plugin-composer-items.spec.ts b/packages/app/e2e/browser/plugin-composer-items.spec.ts
index 6cbb6d0244..2c669105ae 100644
--- a/packages/app/e2e/browser/plugin-composer-items.spec.ts
+++ b/packages/app/e2e/browser/plugin-composer-items.spec.ts
@@ -3,6 +3,7 @@ import {
   expectToolbarNeverCondensedOrClipped,
   recordToolbarFramesFromLoad,
   withComposerControlsExample,
+  withPickerComposerItem,
   withToggleAndWatcherComposerItems,
 } from "../support/helpers/plugin-composer-items";
 
@@ -43,6 +44,17 @@ test("a toolbar without room moves a plugin toggle to the overflow sheet and bac
   });
 });
 
+test("an open plugin picker closes when its trigger moves to the overflow", async ({ page }) => {
+  test.setTimeout(120_000);
+  await withPickerComposerItem(page, async (composer) => {
+    await composer.setWindowWidth(1000);
+    await composer.openInlinePicker();
+    await composer.setWindowWidth(880);
+    await composer.expectToolbarWidthBetween(300, 395);
+    await composer.expectPickerClosed();
+  });
+});
+
 test("the toolbar settles on one density without flipping as the window widens", async ({
   page,
 }) => {
diff --git a/packages/app/e2e/support/helpers/plugin-composer-items.ts b/packages/app/e2e/support/helpers/plugin-composer-items.ts
index f262c3a91b..678c9544da 100644
--- a/packages/app/e2e/support/helpers/plugin-composer-items.ts
+++ b/packages/app/e2e/support/helpers/plugin-composer-items.ts
@@ -90,6 +90,33 @@ export default function contribute(client) {
   return () => {};
 }`;
 
+const PICKER_NAME = "Review state";
+const PICKER_PLUGIN_SOURCE = `import { Select } from "@getpaseo/plugin/client/ui";
+import { useState } from "react";
+
+const OPTIONS = [
+  { value: "draft", label: "Draft" },
+  { value: "ready", label: "Ready" },
+];
+
+function ReviewState() {
+  const [value, setValue] = useState("draft");
+  return (
+    <Select
+      title="${PICKER_NAME}"
+      icon="CircleDot"
+      value={value}
+      options={OPTIONS}
+      onValueChange={({ value: next }) => setValue(next)}
+    />
+  );
+}
+
+export default function contribute(client) {
+  client.addComposerItem({ id: "review-state", Component: ReviewState });
+  return () => {};
+}`;
+
 function toolbar(page: Page) {
   return page.getByTestId("agent-controls-toolbar").filter({ visible: true }).first();
 }
@@ -136,18 +163,38 @@ function agentFeaturesButton(page: Page) {
   return page.getByRole("button", { name: "Open agent features", exact: true });
 }
 
+interface ToolbarPluginComposer {
+  setWindowWidth(width: number): Promise<void>;
+  expectToolbarWidthBetween(min: number, max: number): Promise<void>;
+  expectToggleInlineAtFullDensity(): Promise<void>;
+  expectToggleInOverflow(): Promise<void>;
+  closeOverflowSheet(): Promise<void>;
+  startRecordingDensity(): Promise<void>;
+  expectAtMostOneDensityChange(): Promise<void>;
+  openInlinePicker(): Promise<void>;
+  expectPickerClosed(): Promise<void>;
+}
+
 /** Runs `run` in an agent's composer with one icon toggle and one item that renders nothing. */
-export async function withToggleAndWatcherComposerItems(
+export function withToggleAndWatcherComposerItems(
   page: Page,
-  run: (composer: {
-    setWindowWidth(width: number): Promise<void>;
-    expectToolbarWidthBetween(min: number, max: number): Promise<void>;
-    expectToggleInlineAtFullDensity(): Promise<void>;
-    expectToggleInOverflow(): Promise<void>;
-    closeOverflowSheet(): Promise<void>;
-    startRecordingDensity(): Promise<void>;
-    expectAtMostOneDensityChange(): Promise<void>;
-  }) => Promise<void>,
+  run: (composer: ToolbarPluginComposer) => Promise<void>,
+) {
+  return withToolbarPlugin(page, ONE_TOGGLE_PLUGIN_SOURCE, run);
+}
+
+/** Runs `run` in an agent's composer with one plugin `Select` in the toolbar. */
+export function withPickerComposerItem(
+  page: Page,
+  run: (composer: ToolbarPluginComposer) => Promise<void>,
+) {
+  return withToolbarPlugin(page, PICKER_PLUGIN_SOURCE, run);
+}
+
+async function withToolbarPlugin(
+  page: Page,
+  pluginSource: string,
+  run: (composer: ToolbarPluginComposer) => Promise<void>,
 ) {
   const workspace = await seedWorkspace({ repoPrefix: "composer-measured-items-" });
   const agent = await workspace.client.createAgent({
@@ -165,7 +212,7 @@ export async function withToggleAndWatcherComposerItems(
     path.join(directory, "paseo-plugin.json"),
     JSON.stringify({ id: ONE_TOGGLE_PLUGIN_ID, requirements: pluginRequirements }),
   );
-  await writeFile(path.join(directory, "index.client.tsx"), ONE_TOGGLE_PLUGIN_SOURCE);
+  await writeFile(path.join(directory, "index.client.tsx"), pluginSource);
   try {
     await client.patchDaemonConfig({ pluginsEnabled: true });
     await client.installDirectoryPlugin(directory);
@@ -229,6 +276,14 @@ export async function withToggleAndWatcherComposerItems(
           });
           expect(changes).toBeLessThanOrEqual(1);
         }),
+      openInlinePicker: () =>
+        test.step("open the plugin picker from the toolbar", async () => {
+          await toolbar(page).getByRole("button", { name: PICKER_NAME, exact: true }).click();
+          await expect(page.getByTestId("combobox-desktop-container")).toBeVisible();
+        }),
+      expectPickerClosed: () =>
+        test.step("the plugin picker has closed", () =>
+          expect(page.getByTestId("combobox-desktop-container")).toHaveCount(0)),
     });
   } finally {
     await client.removePlugin(ONE_TOGGLE_PLUGIN_ID);
diff --git a/packages/app/src/composer/agent-controls/plugin-toolbar-slot.tsx b/packages/app/src/composer/agent-controls/plugin-toolbar-slot.tsx
index 84f186cbe5..f31561b6ac 100644
--- a/packages/app/src/composer/agent-controls/plugin-toolbar-slot.tsx
+++ b/packages/app/src/composer/agent-controls/plugin-toolbar-slot.tsx
@@ -1,6 +1,7 @@
 import { useCallback, useState } from "react";
 import { type LayoutChangeEvent, View } from "react-native";
 import { StyleSheet } from "react-native-unistyles";
+import { RetainedPanelActivity } from "@/components/retained-panel";
 import { TOOLBAR_CONTROL_GAP } from "@/components/ui/control-geometry";
 import { isWeb } from "@/constants/platform";
 import { PluginComposerItems } from "@/plugins/composer-items";
@@ -29,7 +30,7 @@ export function usePluginToolbarWidth(): {
  * is an arbitrary component, so its width is known only from rendering it, and it is always the
  * toolbar form that is measured: the width never depends on the density it decides, so moving the
  * items to the overflow sheet cannot change the answer. Out of the row, the same node stays
- * mounted and measured, unseen and out of reach.
+ * mounted and measured, unseen and out of reach, and inactive so an open picker closes with it.
  */
 export function PluginToolbarSlot({
   serverId,
@@ -54,7 +55,9 @@ export function PluginToolbarSlot({
       importantForAccessibility={inline ? "auto" : "no-hide-descendants"}
       aria-hidden={!inline}
     >
-      <PluginComposerItems serverId={serverId} surface="toolbar" />
+      <RetainedPanelActivity active={inline}>
+        <PluginComposerItems serverId={serverId} surface="toolbar" />
+      </RetainedPanelActivity>
     </View>
   );
 }