diff --git a/apps/web/src/components/chat/ChatComposer.tsx b/apps/web/src/components/chat/ChatComposer.tsx
index b19e1240364..a9708660cff 100644
--- a/apps/web/src/components/chat/ChatComposer.tsx
+++ b/apps/web/src/components/chat/ChatComposer.tsx
@@ -68,7 +68,10 @@ import { ComposerPrimaryActions } from "./ComposerPrimaryActions";
 import { ComposerPendingApprovalPanel } from "./ComposerPendingApprovalPanel";
 import { ComposerPendingUserInputPanel } from "./ComposerPendingUserInputPanel";
 import { ComposerPlanFollowUpBanner } from "./ComposerPlanFollowUpBanner";
-import { resolveComposerMenuActiveItemId } from "./composerMenuHighlight";
+import {
+  resolveComposerMenuActiveItemId,
+  resolveComposerMenuNudgedItemId,
+} from "./composerMenuHighlight";
 import { searchSlashCommandItems } from "./composerSlashCommandSearch";
 import {
   getComposerProviderState,
@@ -1134,35 +1137,6 @@ export const ChatComposer = memo(function ChatComposer(props: ChatComposerProps)
     composerTerminalContextsRef.current = composerTerminalContexts;
   }, [composerTerminalContexts, composerTerminalContextsRef]);
 
-  // ------------------------------------------------------------------
-  // Composer menu highlight sync
-  // ------------------------------------------------------------------
-  useEffect(() => {
-    if (!composerMenuOpen) {
-      setComposerHighlightedItemId(null);
-      setComposerHighlightedSearchKey(null);
-      return;
-    }
-    const nextActiveItemId = resolveComposerMenuActiveItemId({
-      items: composerMenuItems,
-      highlightedItemId: composerHighlightedItemId,
-      currentSearchKey: composerMenuSearchKey,
-      highlightedSearchKey: composerHighlightedSearchKey,
-    });
-    setComposerHighlightedItemId((existing) =>
-      existing === nextActiveItemId ? existing : nextActiveItemId,
-    );
-    setComposerHighlightedSearchKey((existing) =>
-      existing === composerMenuSearchKey ? existing : composerMenuSearchKey,
-    );
-  }, [
-    composerHighlightedItemId,
-    composerHighlightedSearchKey,
-    composerMenuItems,
-    composerMenuOpen,
-    composerMenuSearchKey,
-  ]);
-
   const lastSyncedPendingInputRef = useRef<{
     requestId: string | null;
     questionId: string | null;
@@ -1576,18 +1550,16 @@ export const ChatComposer = memo(function ChatComposer(props: ChatComposerProps)
   const nudgeComposerMenuHighlight = useCallback(
     (key: "ArrowDown" | "ArrowUp") => {
       if (composerMenuItems.length === 0) return;
-      const highlightedIndex = composerMenuItems.findIndex(
-        (item) => item.id === composerHighlightedItemId,
+      setComposerHighlightedItemId(
+        resolveComposerMenuNudgedItemId({
+          items: composerMenuItems,
+          activeItemId: activeComposerMenuItem?.id ?? null,
+          direction: key === "ArrowDown" ? "next" : "previous",
+        }),
       );
-      const normalizedIndex =
-        highlightedIndex >= 0 ? highlightedIndex : key === "ArrowDown" ? -1 : 0;
-      const offset = key === "ArrowDown" ? 1 : -1;
-      const nextIndex =
-        (normalizedIndex + offset + composerMenuItems.length) % composerMenuItems.length;
-      const nextItem = composerMenuItems[nextIndex];
-      setComposerHighlightedItemId(nextItem?.id ?? null);
+      setComposerHighlightedSearchKey(composerMenuSearchKey);
     },
-    [composerHighlightedItemId, composerMenuItems],
+    [activeComposerMenuItem?.id, composerMenuItems, composerMenuSearchKey],
   );
 
   const blurMobileComposerAfterSend = useCallback(() => {
diff --git a/apps/web/src/components/chat/composerMenuHighlight.test.ts b/apps/web/src/components/chat/composerMenuHighlight.test.ts
index 08c0f2f24d3..68c9cf24a46 100644
--- a/apps/web/src/components/chat/composerMenuHighlight.test.ts
+++ b/apps/web/src/components/chat/composerMenuHighlight.test.ts
@@ -1,6 +1,9 @@
 import { describe, expect, it } from "vitest";
 
-import { resolveComposerMenuActiveItemId } from "./composerMenuHighlight";
+import {
+  resolveComposerMenuActiveItemId,
+  resolveComposerMenuNudgedItemId,
+} from "./composerMenuHighlight";
 
 describe("resolveComposerMenuActiveItemId", () => {
   const items = [{ id: "top" }, { id: "second" }, { id: "third" }] as const;
@@ -49,3 +52,61 @@ describe("resolveComposerMenuActiveItemId", () => {
     ).toBe("top");
   });
 });
+
+describe("resolveComposerMenuNudgedItemId", () => {
+  const items = [{ id: "top" }, { id: "second" }, { id: "third" }] as const;
+
+  it("moves from the active item", () => {
+    expect(
+      resolveComposerMenuNudgedItemId({
+        items,
+        activeItemId: "second",
+        direction: "next",
+      }),
+    ).toBe("third");
+
+    expect(
+      resolveComposerMenuNudgedItemId({
+        items,
+        activeItemId: "second",
+        direction: "previous",
+      }),
+    ).toBe("top");
+  });
+
+  it("wraps around at either edge", () => {
+    expect(
+      resolveComposerMenuNudgedItemId({
+        items,
+        activeItemId: "third",
+        direction: "next",
+      }),
+    ).toBe("top");
+
+    expect(
+      resolveComposerMenuNudgedItemId({
+        items,
+        activeItemId: "top",
+        direction: "previous",
+      }),
+    ).toBe("third");
+  });
+
+  it("starts from the first visible item when active state is stale", () => {
+    expect(
+      resolveComposerMenuNudgedItemId({
+        items,
+        activeItemId: "missing",
+        direction: "next",
+      }),
+    ).toBe("top");
+
+    expect(
+      resolveComposerMenuNudgedItemId({
+        items,
+        activeItemId: "missing",
+        direction: "previous",
+      }),
+    ).toBe("third");
+  });
+});
diff --git a/apps/web/src/components/chat/composerMenuHighlight.ts b/apps/web/src/components/chat/composerMenuHighlight.ts
index 3cc3d4324fc..9cfbf0496d3 100644
--- a/apps/web/src/components/chat/composerMenuHighlight.ts
+++ b/apps/web/src/components/chat/composerMenuHighlight.ts
@@ -18,3 +18,20 @@ export function resolveComposerMenuActiveItemId(input: {
 
   return input.items[0]?.id ?? null;
 }
+
+export function resolveComposerMenuNudgedItemId(input: {
+  items: ReadonlyArray<{ id: string }>;
+  activeItemId: string | null;
+  direction: "next" | "previous";
+}): string | null {
+  if (input.items.length === 0) {
+    return null;
+  }
+
+  const activeIndex = input.items.findIndex((item) => item.id === input.activeItemId);
+  const normalizedIndex = activeIndex >= 0 ? activeIndex : input.direction === "next" ? -1 : 0;
+  const offset = input.direction === "next" ? 1 : -1;
+  const nextIndex = (normalizedIndex + offset + input.items.length) % input.items.length;
+
+  return input.items[nextIndex]?.id ?? null;
+}
diff --git a/docs/react-scan-recordings/composer-menu-highlight-after.webm b/docs/react-scan-recordings/composer-menu-highlight-after.webm
new file mode 100644
index 00000000000..c4d844be37f
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diff --git a/docs/react-scan-recordings/composer-menu-highlight-before.webm b/docs/react-scan-recordings/composer-menu-highlight-before.webm
new file mode 100644
index 00000000000..53a333b7b77
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