diff --git a/src/renderer/src/lib/visible-overlay.test.ts b/src/renderer/src/lib/visible-overlay.test.ts
index b6cf072d2d9..5b486450ce7 100644
--- a/src/renderer/src/lib/visible-overlay.test.ts
+++ b/src/renderer/src/lib/visible-overlay.test.ts
@@ -30,6 +30,16 @@ describe('hasVisibleOverlay', () => {
     expect(hasVisibleOverlay()).toBe(false)
   })
 
+  it('ignores the persistent workspace list while preserving its nested popups', () => {
+    mount('<div role="listbox" data-worktree-sidebar></div>')
+
+    expect(hasVisibleOverlay()).toBe(false)
+
+    document.querySelector('[data-worktree-sidebar]')!.innerHTML = '<div role="menu"></div>'
+
+    expect(hasVisibleOverlay()).toBe(true)
+  })
+
   it('ignores a display:none overlay', () => {
     mount('<div role="dialog" style="display: none"></div>')
 
diff --git a/src/renderer/src/lib/visible-overlay.ts b/src/renderer/src/lib/visible-overlay.ts
index 19a8315cccf..6892010b4df 100644
--- a/src/renderer/src/lib/visible-overlay.ts
+++ b/src/renderer/src/lib/visible-overlay.ts
@@ -15,6 +15,10 @@ export function hasVisibleOverlay(options?: VisibleOverlayOptions): boolean {
     if (!(element instanceof HTMLElement)) {
       return false
     }
+    // The persistent workspace list is page chrome, not an Escape-owning popup.
+    if (element.matches('[role="listbox"][data-worktree-sidebar]')) {
+      return false
+    }
     if (element.closest('[aria-hidden="true"]')) {
       return false
     }