diff --git a/crates/story/src/modal_story.rs b/crates/story/src/modal_story.rs
index 70222112..15835f07 100644
--- a/crates/story/src/modal_story.rs
+++ b/crates/story/src/modal_story.rs
@@ -11,6 +11,7 @@ use ui::{
     button::{Button, ButtonStyle, ButtonStyled as _},
     checkbox::Checkbox,
     date_picker::DatePicker,
+    dropdown::Dropdown,
     h_flex,
     input::TextInput,
     list::{List, ListDelegate, ListItem},
@@ -149,6 +150,7 @@ pub struct ModalStory {
     input1: View<TextInput>,
     input2: View<TextInput>,
     date_picker: View<DatePicker>,
+    dropdown: View<Dropdown<Vec<String>>>,
     modal_overlay: bool,
     model_show_close: bool,
     model_padding: bool,
@@ -247,6 +249,18 @@ impl ModalStory {
         let input2 = cx.new_view(|cx| TextInput::new(cx).placeholder("Input on the Window"));
         let date_picker =
             cx.new_view(|cx| DatePicker::new("birthday-picker", cx).placeholder("Date of Birth"));
+        let dropdown = cx.new_view(|cx| {
+            Dropdown::new(
+                "dropdown1",
+                vec![
+                    "Option 1".to_string(),
+                    "Option 2".to_string(),
+                    "Option 3".to_string(),
+                ],
+                None,
+                cx,
+            )
+        });
 
         Self {
             focus_handle: cx.focus_handle(),
@@ -256,6 +270,7 @@ impl ModalStory {
             input1,
             input2,
             date_picker,
+            dropdown,
             modal_overlay: true,
             model_show_close: true,
             model_padding: true,
@@ -322,10 +337,10 @@ impl ModalStory {
         let modal_padding = self.model_padding;
         let input1 = self.input1.clone();
         let date_picker = self.date_picker.clone();
+        let dropdown = self.dropdown.clone();
         let view = cx.view().clone();
 
         cx.open_modal(move |modal, cx| {
-            input1.focus_handle(cx).focus(cx);
             modal
                 .title("Form Modal")
                 .overlay(overlay)
@@ -337,6 +352,7 @@ impl ModalStory {
                         .child("This is a modal dialog.")
                         .child("You can put anything here.")
                         .child(input1.clone())
+                        .child(dropdown.clone())
                         .child(date_picker.clone()),
                 )
                 .footer(
@@ -388,6 +404,8 @@ impl ModalStory {
                         ),
                 )
         });
+
+        self.input1.focus_handle(cx).focus(cx);
     }
 
     fn on_action_test_action(&mut self, _: &TestAction, cx: &mut ViewContext<Self>) {
diff --git a/crates/ui/src/color_picker.rs b/crates/ui/src/color_picker.rs
index c6830957..9bf6eb4e 100644
--- a/crates/ui/src/color_picker.rs
+++ b/crates/ui/src/color_picker.rs
@@ -156,6 +156,8 @@ impl ColorPicker {
     }
 
     fn on_escape(&mut self, _: &Escape, cx: &mut ViewContext<Self>) {
+        cx.propagate();
+
         self.open = false;
         cx.notify();
     }
@@ -343,7 +345,6 @@ impl Render for ColorPicker {
                             .position(self.resolved_corner(self.bounds))
                             .child(
                                 div()
-                                    .track_focus(&self.focus_handle)
                                     .occlude()
                                     .map(|this| match self.anchor {
                                         AnchorCorner::TopLeft | AnchorCorner::TopRight => {
diff --git a/crates/ui/src/dropdown.rs b/crates/ui/src/dropdown.rs
index 576bd387..f68687ef 100644
--- a/crates/ui/src/dropdown.rs
+++ b/crates/ui/src/dropdown.rs
@@ -150,29 +150,32 @@ where
     }
 
     fn cancel(&mut self, cx: &mut ViewContext<List<Self>>) {
-        if let Some(view) = self.dropdown.upgrade() {
-            cx.update_view(&view, |view, cx| {
-                view.focus(cx);
-                view.open = false;
+        let dropdown = self.dropdown.clone();
+        cx.defer(move |_, cx| {
+            _ = dropdown.update(cx, |this, cx| {
+                this.open = false;
+                this.focus(cx);
             });
-        }
+        });
     }
 
     fn confirm(&mut self, ix: Option<usize>, cx: &mut ViewContext<List<Self>>) {
         self.selected_index = ix;
 
-        if let Some(view) = self.dropdown.upgrade() {
-            cx.update_view(&view, |view, cx| {
-                let selected_value = self
-                    .selected_index
-                    .and_then(|ix| self.delegate.get(ix))
-                    .map(|item| item.value().clone());
+        let selected_value = self
+            .selected_index
+            .and_then(|ix| self.delegate.get(ix))
+            .map(|item| item.value().clone());
+        let dropdown = self.dropdown.clone();
+
+        cx.defer(move |_, cx| {
+            _ = dropdown.update(cx, |this, cx| {
                 cx.emit(DropdownEvent::Confirm(selected_value.clone()));
-                view.focus(cx);
-                view.selected_value = selected_value;
-                view.open = false;
+                this.selected_value = selected_value;
+                this.open = false;
+                this.focus(cx);
             });
-        }
+        });
     }
 
     fn perform_search(&mut self, query: &str, cx: &mut ViewContext<List<Self>>) -> Task<()> {
@@ -469,6 +472,9 @@ where
     }
 
     fn enter(&mut self, _: &Enter, cx: &mut ViewContext<Self>) {
+        // Propagate the event to the parent view, for example to the Modal to support ENTER to confirm.
+        cx.propagate();
+
         if !self.open {
             self.open = true;
             cx.notify();
@@ -489,6 +495,9 @@ where
     }
 
     fn escape(&mut self, _: &Escape, cx: &mut ViewContext<Self>) {
+        // Propagate the event to the parent view, for example to the Modal to support ESC to close.
+        cx.propagate();
+
         self.open = false;
         cx.notify();
     }
@@ -566,7 +575,7 @@ where
         let view = cx.view().clone();
         let bounds = self.bounds;
         let allow_open = !(self.open || self.disabled);
-        let outline_visible = is_focused && !self.disabled;
+        let outline_visible = self.open || is_focused && !self.disabled;
 
         // If the size has change, set size to self.list, to change the QueryInput size.
         if self.list.read(cx).size != self.size {
@@ -676,7 +685,6 @@ where
                                 })
                                 .child(
                                     v_flex()
-                                        .track_focus(&self.list.focus_handle(cx))
                                         .occlude()
                                         .mt_1p5()
                                         .bg(cx.theme().background)
@@ -688,7 +696,10 @@ where
                                             cx.dispatch_action(Box::new(Escape));
                                         })
                                         .child(self.list.clone()),
-                                ),
+                                )
+                                .on_mouse_down_out(cx.listener(|this, _, cx| {
+                                    this.escape(&Escape, cx);
+                                })),
                         ),
                     )
                     .with_priority(1),
diff --git a/crates/ui/src/root.rs b/crates/ui/src/root.rs
index 23ec8ba6..680fdaa9 100644
--- a/crates/ui/src/root.rs
+++ b/crates/ui/src/root.rs
@@ -103,7 +103,12 @@ impl<'a> ContextModal for WindowContext<'a> {
     fn close_modal(&mut self) {
         Root::update(self, move |root, cx| {
             root.active_modals.pop();
-            if root.active_modals.len() == 0 {
+
+            if let Some(top_modal) = root.active_modals.last() {
+                // Focus the next modal.
+                top_modal.focus_handle.focus(cx);
+            } else {
+                // Restore focus if there are no more modals.
                 root.focus_back(cx);
             }
             cx.notify();
@@ -288,8 +293,6 @@ impl Root {
             return None;
         }
 
-        let modals_len = active_modals.len();
-
         Some(
             div().children(active_modals.iter().enumerate().map(|(i, active_modal)| {
                 let mut modal = Modal::new(cx);
@@ -302,14 +305,6 @@ impl Root {
                 // So we keep the focus handle in the `active_modal`, this is owned by the `Root`.
                 modal.focus_handle = active_modal.focus_handle.clone();
 
-                // Focus to the top modal.
-                if i == modals_len - 1 {
-                    // Check to avoid focus, when the modal is already focused.
-                    if !modal.focus_handle.contains_focused(cx) {
-                        cx.focus(&modal.focus_handle);
-                    }
-                }
-
                 // Keep only have one overlay, we only render the first modal with overlay.
                 if has_overlay {
                     modal.overlay_visible = false;
diff --git a/crates/ui/src/styled.rs b/crates/ui/src/styled.rs
index a61c13c4..e0f513ee 100644
--- a/crates/ui/src/styled.rs
+++ b/crates/ui/src/styled.rs
@@ -85,7 +85,7 @@ pub trait StyledExt: Styled + Sized {
     /// Render a 1px blue border, when if the element is focused
     fn debug_focused(self, focus_handle: &FocusHandle, cx: &WindowContext) -> Self {
         if cfg!(debug_assertions) {
-            if focus_handle.is_focused(cx) {
+            if focus_handle.contains_focused(cx) {
                 self.debug_blue()
             } else {
                 self
diff --git a/crates/ui/src/time/date_picker.rs b/crates/ui/src/time/date_picker.rs
index c804efb9..60b94054 100644
--- a/crates/ui/src/time/date_picker.rs
+++ b/crates/ui/src/time/date_picker.rs
@@ -65,6 +65,7 @@ impl DatePicker {
         cx.subscribe(&calendar, |this, _, ev: &CalendarEvent, cx| match ev {
             CalendarEvent::Selected(date) => {
                 this.update_date(*date, true, cx);
+                this.focus_handle.focus(cx);
             }
         })
         .detach();
@@ -138,6 +139,7 @@ impl DatePicker {
 
     fn escape(&mut self, _: &Escape, cx: &mut ViewContext<Self>) {
         self.open = false;
+        self.focus_handle.focus(cx);
         cx.notify();
     }
 
@@ -195,7 +197,7 @@ impl Render for DatePicker {
             .id(self.id.clone())
             .key_context("DatePicker")
             .track_focus(&self.focus_handle)
-            .on_action(cx.listener(Self::escape))
+            .when(self.open, |this| this.on_action(cx.listener(Self::escape)))
             .w_full()
             .relative()
             .map(|this| match self.width {