diff --git a/packages/common/src/constants.ts b/packages/common/src/constants.ts
index b41fb1a37d..b7c31e5273 100644
--- a/packages/common/src/constants.ts
+++ b/packages/common/src/constants.ts
@@ -536,3 +536,10 @@ export enum UserIdleState {
 export const LINE_POLYGON_POINT_MERGE_DISTANCE = 20;
 
 export const DOUBLE_TAP_POSITION_THRESHOLD = 35;
+
+// glass background for mobile action buttons
+export const MOBILE_ACTION_BUTTON_BG = {
+  background: "rgba(255, 255, 255, 0.1)",
+  backdropFilter: "blur(20px)",
+  WebkitBackdropFilter: "blur(20px)",
+} as const;
diff --git a/packages/excalidraw/actions/actionDeleteSelected.tsx b/packages/excalidraw/actions/actionDeleteSelected.tsx
index 4fe8643eac..374236578f 100644
--- a/packages/excalidraw/actions/actionDeleteSelected.tsx
+++ b/packages/excalidraw/actions/actionDeleteSelected.tsx
@@ -1,4 +1,8 @@
-import { KEYS, updateActiveTool } from "@excalidraw/common";
+import {
+  KEYS,
+  MOBILE_ACTION_BUTTON_BG,
+  updateActiveTool,
+} from "@excalidraw/common";
 
 import { getNonDeletedElements } from "@excalidraw/element";
 import { fixBindingsAfterDeletion } from "@excalidraw/element";
@@ -326,6 +330,11 @@ export const actionDeleteSelected = register({
       disabled={
         !isSomeElementSelected(getNonDeletedElements(elements), appState)
       }
+      style={{
+        ...(appState.stylesPanelMode === "mobile"
+          ? MOBILE_ACTION_BUTTON_BG
+          : {}),
+      }}
     />
   ),
 });
diff --git a/packages/excalidraw/actions/actionDuplicateSelection.tsx b/packages/excalidraw/actions/actionDuplicateSelection.tsx
index 081980bd9d..4a84ccd76a 100644
--- a/packages/excalidraw/actions/actionDuplicateSelection.tsx
+++ b/packages/excalidraw/actions/actionDuplicateSelection.tsx
@@ -1,6 +1,7 @@
 import {
   DEFAULT_GRID_SIZE,
   KEYS,
+  MOBILE_ACTION_BUTTON_BG,
   arrayToMap,
   getShortcutKey,
 } from "@excalidraw/common";
@@ -118,6 +119,11 @@ export const actionDuplicateSelection = register({
       disabled={
         !isSomeElementSelected(getNonDeletedElements(elements), appState)
       }
+      style={{
+        ...(appState.stylesPanelMode === "mobile"
+          ? MOBILE_ACTION_BUTTON_BG
+          : {}),
+      }}
     />
   ),
 });
diff --git a/packages/excalidraw/actions/actionHistory.tsx b/packages/excalidraw/actions/actionHistory.tsx
index b948fe7d49..a1971f527c 100644
--- a/packages/excalidraw/actions/actionHistory.tsx
+++ b/packages/excalidraw/actions/actionHistory.tsx
@@ -1,4 +1,10 @@
-import { isWindows, KEYS, matchKey, arrayToMap } from "@excalidraw/common";
+import {
+  isWindows,
+  KEYS,
+  matchKey,
+  arrayToMap,
+  MOBILE_ACTION_BUTTON_BG,
+} from "@excalidraw/common";
 
 import { CaptureUpdateAction } from "@excalidraw/element";
 
@@ -67,7 +73,7 @@ export const createUndoAction: ActionCreator = (history) => ({
     ),
   keyTest: (event) =>
     event[KEYS.CTRL_OR_CMD] && matchKey(event, KEYS.Z) && !event.shiftKey,
-  PanelComponent: ({ updateData, data }) => {
+  PanelComponent: ({ appState, updateData, data }) => {
     const { isUndoStackEmpty } = useEmitter<HistoryChangedEvent>(
       history.onHistoryChangedEmitter,
       new HistoryChangedEvent(
@@ -85,6 +91,11 @@ export const createUndoAction: ActionCreator = (history) => ({
         size={data?.size || "medium"}
         disabled={isUndoStackEmpty}
         data-testid="button-undo"
+        style={{
+          ...(appState.stylesPanelMode === "mobile"
+            ? MOBILE_ACTION_BUTTON_BG
+            : {}),
+        }}
       />
     );
   },
@@ -103,7 +114,7 @@ export const createRedoAction: ActionCreator = (history) => ({
   keyTest: (event) =>
     (event[KEYS.CTRL_OR_CMD] && event.shiftKey && matchKey(event, KEYS.Z)) ||
     (isWindows && event.ctrlKey && !event.shiftKey && matchKey(event, KEYS.Y)),
-  PanelComponent: ({ updateData, data }) => {
+  PanelComponent: ({ appState, updateData, data }) => {
     const { isRedoStackEmpty } = useEmitter(
       history.onHistoryChangedEmitter,
       new HistoryChangedEvent(
@@ -121,6 +132,11 @@ export const createRedoAction: ActionCreator = (history) => ({
         size={data?.size || "medium"}
         disabled={isRedoStackEmpty}
         data-testid="button-redo"
+        style={{
+          ...(appState.stylesPanelMode === "mobile"
+            ? MOBILE_ACTION_BUTTON_BG
+            : {}),
+        }}
       />
     );
   },
diff --git a/packages/excalidraw/components/Actions.scss b/packages/excalidraw/components/Actions.scss
index 90f5688117..c84413e228 100644
--- a/packages/excalidraw/components/Actions.scss
+++ b/packages/excalidraw/components/Actions.scss
@@ -106,6 +106,7 @@
     justify-content: center;
     align-items: center;
     min-height: 2.5rem;
+    pointer-events: auto;
 
     --default-button-size: 2rem;
 
@@ -114,7 +115,6 @@
       height: 1.625rem;
       border: none;
       border-radius: var(--border-radius-lg);
-      background: transparent;
       color: var(--color-on-surface);
       cursor: pointer;
       display: flex;
@@ -122,21 +122,17 @@
       justify-content: center;
       transition: all 0.2s ease;
 
+      background: rgba(255, 255, 255, 0.1);
+      backdrop-filter: blur(20px);
+      -webkit-backdrop-filter: blur(20px);
+
       svg {
         width: 1rem;
         height: 1rem;
         flex: 0 0 auto;
       }
 
-      &:hover {
-        background: var(--button-hover-bg, var(--island-bg-color));
-        border-color: var(
-          --button-hover-border,
-          var(--button-border, var(--default-border-color))
-        );
-      }
-
-      &:active {
+      &.active {
         background: var(--button-active-bg, var(--island-bg-color));
         border-color: var(--button-active-border, var(--color-primary-darkest));
       }
@@ -168,9 +164,15 @@
     }
   }
 
-  .ToolIcon__icon {
-    width: 1.625rem;
-    height: 1.625rem;
+  .ToolIcon {
+    .ToolIcon__icon {
+      width: 1.625rem;
+      height: 1.625rem;
+
+      &:hover {
+        background-color: transparent;
+      }
+    }
   }
 }
 
diff --git a/packages/excalidraw/components/Actions.tsx b/packages/excalidraw/components/Actions.tsx
index 7d267d2773..25c76b537c 100644
--- a/packages/excalidraw/components/Actions.tsx
+++ b/packages/excalidraw/components/Actions.tsx
@@ -328,7 +328,7 @@ const CombinedShapeProperties = ({
         hasBackground(element.type) && !isTransparent(element.backgroundColor),
     );
 
-  const showShowCombinedProperties =
+  const shouldShowCombinedProperties =
     showFillIcons ||
     hasStrokeWidth(appState.activeTool.type) ||
     targetElements.some((element) => hasStrokeWidth(element.type)) ||
@@ -337,14 +337,16 @@ const CombinedShapeProperties = ({
     canChangeRoundness(appState.activeTool.type) ||
     targetElements.some((element) => canChangeRoundness(element.type));
 
-  if (!showShowCombinedProperties) {
+  const isOpen = appState.openPopup === "compactStrokeStyles";
+
+  if (!shouldShowCombinedProperties) {
     return null;
   }
 
   return (
     <div className="compact-action-item">
       <Popover.Root
-        open={appState.openPopup === "compactStrokeStyles"}
+        open={isOpen}
         onOpenChange={(open) => {
           if (open) {
             setAppState({ openPopup: "compactStrokeStyles" });
@@ -356,24 +358,23 @@ const CombinedShapeProperties = ({
         <Popover.Trigger asChild>
           <button
             type="button"
-            className="compact-action-button properties-trigger"
+            className={clsx("compact-action-button properties-trigger", {
+              active: isOpen,
+            })}
             title={t("labels.stroke")}
             onClick={(e) => {
               e.preventDefault();
               e.stopPropagation();
 
               setAppState({
-                openPopup:
-                  appState.openPopup === "compactStrokeStyles"
-                    ? null
-                    : "compactStrokeStyles",
+                openPopup: isOpen ? null : "compactStrokeStyles",
               });
             }}
           >
             {adjustmentsIcon}
           </button>
         </Popover.Trigger>
-        {appState.openPopup === "compactStrokeStyles" && (
+        {isOpen && (
           <PropertiesPopover
             className={PROPERTIES_CLASSES}
             container={container}
@@ -428,6 +429,7 @@ const CombinedArrowProperties = ({
   const showShowArrowProperties =
     toolIsArrow(appState.activeTool.type) ||
     targetElements.some((element) => toolIsArrow(element.type));
+  const isOpen = appState.openPopup === "compactArrowProperties";
 
   if (!showShowArrowProperties) {
     return null;
@@ -436,7 +438,7 @@ const CombinedArrowProperties = ({
   return (
     <div className="compact-action-item">
       <Popover.Root
-        open={appState.openPopup === "compactArrowProperties"}
+        open={isOpen}
         onOpenChange={(open) => {
           if (open) {
             setAppState({ openPopup: "compactArrowProperties" });
@@ -448,17 +450,16 @@ const CombinedArrowProperties = ({
         <Popover.Trigger asChild>
           <button
             type="button"
-            className="compact-action-button properties-trigger"
+            className={clsx("compact-action-button properties-trigger", {
+              active: isOpen,
+            })}
             title={t("labels.arrowtypes")}
             onClick={(e) => {
               e.preventDefault();
               e.stopPropagation();
 
               setAppState({
-                openPopup:
-                  appState.openPopup === "compactArrowProperties"
-                    ? null
-                    : "compactArrowProperties",
+                openPopup: isOpen ? null : "compactArrowProperties",
               });
             }}
           >
@@ -492,7 +493,7 @@ const CombinedArrowProperties = ({
             })()}
           </button>
         </Popover.Trigger>
-        {appState.openPopup === "compactArrowProperties" && (
+        {isOpen && (
           <PropertiesPopover
             container={container}
             className="properties-content"
@@ -523,11 +524,12 @@ const CombinedTextProperties = ({
   elementsMap: NonDeletedElementsMap | NonDeletedSceneElementsMap;
 }) => {
   const { saveCaretPosition, restoreCaretPosition } = useTextEditorFocus();
+  const isOpen = appState.openPopup === "compactTextProperties";
 
   return (
     <div className="compact-action-item">
       <Popover.Root
-        open={appState.openPopup === "compactTextProperties"}
+        open={isOpen}
         onOpenChange={(open) => {
           if (open) {
             if (appState.editingTextElement) {
@@ -545,13 +547,15 @@ const CombinedTextProperties = ({
         <Popover.Trigger asChild>
           <button
             type="button"
-            className="compact-action-button properties-trigger"
+            className={clsx("compact-action-button properties-trigger", {
+              active: isOpen,
+            })}
             title={t("labels.textAlign")}
             onClick={(e) => {
               e.preventDefault();
               e.stopPropagation();
 
-              if (appState.openPopup === "compactTextProperties") {
+              if (isOpen) {
                 setAppState({ openPopup: null });
               } else {
                 if (appState.editingTextElement) {
@@ -629,6 +633,7 @@ const CombinedExtraActions = ({
   }
 
   const isRTL = document.documentElement.getAttribute("dir") === "rtl";
+  const isOpen = appState.openPopup === "compactOtherProperties";
 
   if (isEditingTextOrNewElement || targetElements.length === 0) {
     return null;
@@ -637,7 +642,7 @@ const CombinedExtraActions = ({
   return (
     <div className="compact-action-item">
       <Popover.Root
-        open={appState.openPopup === "compactOtherProperties"}
+        open={isOpen}
         onOpenChange={(open) => {
           if (open) {
             setAppState({ openPopup: "compactOtherProperties" });
@@ -649,23 +654,22 @@ const CombinedExtraActions = ({
         <Popover.Trigger asChild>
           <button
             type="button"
-            className="compact-action-button properties-trigger"
+            className={clsx("compact-action-button properties-trigger", {
+              active: isOpen,
+            })}
             title={t("labels.actions")}
             onClick={(e) => {
               e.preventDefault();
               e.stopPropagation();
               setAppState({
-                openPopup:
-                  appState.openPopup === "compactOtherProperties"
-                    ? null
-                    : "compactOtherProperties",
+                openPopup: isOpen ? null : "compactOtherProperties",
               });
             }}
           >
             {DotsHorizontalIcon}
           </button>
         </Popover.Trigger>
-        {appState.openPopup === "compactOtherProperties" && (
+        {isOpen && (
           <PropertiesPopover
             className={PROPERTIES_CLASSES}
             container={container}
@@ -798,12 +802,7 @@ export const CompactShapeActions = ({
     <div className="compact-shape-actions">
       {/* Stroke Color */}
       {canChangeStrokeColor(appState, targetElements) && (
-        <div
-          className={clsx("compact-action-item")}
-          style={{
-            marginRight: 4,
-          }}
-        >
+        <div className={clsx("compact-action-item")}>
           {renderAction("changeStrokeColor")}
         </div>
       )}
@@ -925,6 +924,7 @@ export const MobileShapeActions = ({
         height: WIDTH * 1.75,
         alignItems: "center",
         gap: GAP,
+        pointerEvents: "none",
       }}
       ref={mobileActionsRef}
     >
diff --git a/packages/excalidraw/components/ColorPicker/ColorPicker.scss b/packages/excalidraw/components/ColorPicker/ColorPicker.scss
index 0e3768dcc0..f6acb32b84 100644
--- a/packages/excalidraw/components/ColorPicker/ColorPicker.scss
+++ b/packages/excalidraw/components/ColorPicker/ColorPicker.scss
@@ -7,6 +7,12 @@
     }
   }
 
+  .color-picker__title {
+    padding: 0 0.5rem;
+    font-size: 0.875rem;
+    text-align: left;
+  }
+
   .color-picker__heading {
     padding: 0 0.5rem;
     font-size: 0.75rem;
diff --git a/packages/excalidraw/components/ColorPicker/ColorPicker.tsx b/packages/excalidraw/components/ColorPicker/ColorPicker.tsx
index 51c7bbd2c5..c97ae1a97d 100644
--- a/packages/excalidraw/components/ColorPicker/ColorPicker.tsx
+++ b/packages/excalidraw/components/ColorPicker/ColorPicker.tsx
@@ -18,7 +18,7 @@ import { useExcalidrawContainer } from "../App";
 import { ButtonSeparator } from "../ButtonSeparator";
 import { activeEyeDropperAtom } from "../EyeDropper";
 import { PropertiesPopover } from "../PropertiesPopover";
-import { backgroundIcon, slashIcon, strokeIcon } from "../icons";
+import { slashIcon, strokeIcon } from "../icons";
 import {
   saveCaretPosition,
   restoreCaretPosition,
@@ -213,6 +213,10 @@ const ColorPickerPopupContent = ({
           type={type}
           elements={elements}
           updateData={updateData}
+          showTitle={
+            appState.stylesPanelMode === "compact" ||
+            appState.stylesPanelMode === "mobile"
+          }
         >
           {colorInputJSX}
         </Picker>
@@ -272,31 +276,18 @@ const ColorPickerTrigger = ({
       onClick={handleClick}
     >
       <div className="color-picker__button-outline">{!color && slashIcon}</div>
-      {compactMode && color && (
+      {compactMode && color && mode === "stroke" && (
         <div className="color-picker__button-background">
-          {mode === "background" ? (
-            <span
-              style={{
-                color:
-                  color && isColorDark(color, COLOR_OUTLINE_CONTRAST_THRESHOLD)
-                    ? "#fff"
-                    : "#111",
-              }}
-            >
-              {backgroundIcon}
-            </span>
-          ) : (
-            <span
-              style={{
-                color:
-                  color && isColorDark(color, COLOR_OUTLINE_CONTRAST_THRESHOLD)
-                    ? "#fff"
-                    : "#111",
-              }}
-            >
-              {strokeIcon}
-            </span>
-          )}
+          <span
+            style={{
+              color:
+                color && isColorDark(color, COLOR_OUTLINE_CONTRAST_THRESHOLD)
+                  ? "#fff"
+                  : "#111",
+            }}
+          >
+            {strokeIcon}
+          </span>
         </div>
       )}
     </Popover.Trigger>
diff --git a/packages/excalidraw/components/ColorPicker/Picker.tsx b/packages/excalidraw/components/ColorPicker/Picker.tsx
index f784912f4c..e9943a858f 100644
--- a/packages/excalidraw/components/ColorPicker/Picker.tsx
+++ b/packages/excalidraw/components/ColorPicker/Picker.tsx
@@ -37,6 +37,7 @@ interface PickerProps {
   palette: ColorPaletteCustom;
   updateData: (formData?: any) => void;
   children?: React.ReactNode;
+  showTitle?: boolean;
   onEyeDropperToggle: (force?: boolean) => void;
   onEscape: (event: React.KeyboardEvent | KeyboardEvent) => void;
 }
@@ -51,11 +52,20 @@ export const Picker = React.forwardRef(
       palette,
       updateData,
       children,
+      showTitle,
       onEyeDropperToggle,
       onEscape,
     }: PickerProps,
     ref,
   ) => {
+    const title = showTitle
+      ? type === "elementStroke"
+        ? t("labels.stroke")
+        : type === "elementBackground"
+        ? t("labels.background")
+        : null
+      : null;
+
     const [customColors] = React.useState(() => {
       if (type === "canvasBackground") {
         return [];
@@ -154,6 +164,8 @@ export const Picker = React.forwardRef(
           // to allow focusing by clicking but not by tabbing
           tabIndex={-1}
         >
+          {title && <div className="color-picker__title">{title}</div>}
+
           {!!customColors.length && (
             <div>
               <PickerHeading>
diff --git a/packages/excalidraw/components/FontPicker/FontPickerTrigger.tsx b/packages/excalidraw/components/FontPicker/FontPickerTrigger.tsx
index 5c122725c1..5d60a8c3b9 100644
--- a/packages/excalidraw/components/FontPicker/FontPickerTrigger.tsx
+++ b/packages/excalidraw/components/FontPicker/FontPickerTrigger.tsx
@@ -21,6 +21,16 @@ export const FontPickerTrigger = ({
 }: FontPickerTriggerProps) => {
   const setAppState = useExcalidrawSetAppState();
 
+  const compactStyle = compactMode
+    ? {
+        background: "rgba(255, 255, 255, 0.1)",
+        backdropFilter: "blur(20px)",
+        WebkitBackdropFilter: "blur(20px)",
+        width: "1.625rem",
+        height: "1.625rem",
+      }
+    : {};
+
   return (
     <Popover.Trigger asChild>
       <div data-openpopup="fontFamily" className="properties-trigger">
@@ -39,8 +49,7 @@ export const FontPickerTrigger = ({
           }}
           style={{
             border: "none",
-            width: compactMode ? "1.625rem" : undefined,
-            height: compactMode ? "1.625rem" : undefined,
+            ...compactStyle,
           }}
         />
       </div>
diff --git a/packages/excalidraw/components/HandButton.tsx b/packages/excalidraw/components/HandButton.tsx
index 5ebfdf9d3f..db653a8103 100644
--- a/packages/excalidraw/components/HandButton.tsx
+++ b/packages/excalidraw/components/HandButton.tsx
@@ -18,7 +18,7 @@ type LockIconProps = {
 export const HandButton = (props: LockIconProps) => {
   return (
     <ToolButton
-      className={clsx("Shape", { fillable: false })}
+      className={clsx("Shape", { fillable: false, active: props.checked })}
       type="radio"
       icon={handIcon}
       name="editor-current-shape"
diff --git a/packages/excalidraw/components/MobileMenu.tsx b/packages/excalidraw/components/MobileMenu.tsx
index 7aa53bcc49..49be99c45d 100644
--- a/packages/excalidraw/components/MobileMenu.tsx
+++ b/packages/excalidraw/components/MobileMenu.tsx
@@ -93,16 +93,7 @@ export const MobileMenu = ({
           justifyContent: "space-between",
         }}
       >
-        <div
-          style={{
-            display: "flex",
-            flexDirection: "row",
-            alignItems: "center",
-            gap: 16,
-          }}
-        >
-          <MainMenuTunnel.Out />
-        </div>
+        <MainMenuTunnel.Out />
         {topRightUI ? topRightUI : <DefaultSidebarTriggerTunnel.Out />}
       </div>
     );
diff --git a/packages/excalidraw/components/MobileToolBar.scss b/packages/excalidraw/components/MobileToolBar.scss
index 0fefa43abc..34eefae7ef 100644
--- a/packages/excalidraw/components/MobileToolBar.scss
+++ b/packages/excalidraw/components/MobileToolBar.scss
@@ -39,6 +39,15 @@
     .ToolIcon__icon {
       width: 2rem;
       height: 2rem;
+
+      &:hover {
+        background-color: transparent;
+      }
+    }
+
+    &.active {
+      background: var(--button-active-bg, var(--island-bg-color));
+      border-color: var(--button-active-border, var(--color-primary-darkest));
     }
 
     svg {
diff --git a/packages/excalidraw/components/MobileToolBar.tsx b/packages/excalidraw/components/MobileToolBar.tsx
index 8d6aa80e31..3973575936 100644
--- a/packages/excalidraw/components/MobileToolBar.tsx
+++ b/packages/excalidraw/components/MobileToolBar.tsx
@@ -190,7 +190,6 @@ export const MobileToolBar = ({
         options={SELECTION_TOOLS}
         activeTool={activeTool}
         defaultOption={app.defaultSelectionTool}
-        className="Selection"
         namePrefix="selectionType"
         title={capitalizeString(t("toolBar.selection"))}
         data-testid="toolbar-selection"
@@ -210,7 +209,9 @@ export const MobileToolBar = ({
 
       {/* Free Draw */}
       <ToolButton
-        className={clsx("Shape", { fillable: false })}
+        className={clsx({
+          active: activeTool.type === "freedraw",
+        })}
         type="radio"
         icon={FreedrawIcon}
         checked={activeTool.type === "freedraw"}
@@ -223,7 +224,9 @@ export const MobileToolBar = ({
 
       {/* Eraser */}
       <ToolButton
-        className={clsx("Shape", { fillable: false })}
+        className={clsx({
+          active: activeTool.type === "eraser",
+        })}
         type="radio"
         icon={EraserIcon}
         checked={activeTool.type === "eraser"}
@@ -296,7 +299,9 @@ export const MobileToolBar = ({
 
       {/* Image */}
       <ToolButton
-        className={clsx("Shape", { fillable: false })}
+        className={clsx({
+          active: activeTool.type === "image",
+        })}
         type="radio"
         icon={ImageIcon}
         checked={activeTool.type === "image"}
@@ -310,7 +315,9 @@ export const MobileToolBar = ({
       {/* Text Tool */}
       {showTextToolOutside && (
         <ToolButton
-          className={clsx("Shape", { fillable: false })}
+          className={clsx({
+            active: activeTool.type === "text",
+          })}
           type="radio"
           icon={TextIcon}
           checked={activeTool.type === "text"}
@@ -325,7 +332,7 @@ export const MobileToolBar = ({
       {/* Frame Tool */}
       {showFrameToolOutside && (
         <ToolButton
-          className={clsx("Shape", { fillable: false })}
+          className={clsx({ active: frameToolSelected })}
           type="radio"
           icon={frameToolIcon}
           checked={frameToolSelected}
diff --git a/packages/excalidraw/components/ToolWithPopup.tsx b/packages/excalidraw/components/ToolWithPopup.tsx
index 14a2efc924..2c774f10b9 100644
--- a/packages/excalidraw/components/ToolWithPopup.tsx
+++ b/packages/excalidraw/components/ToolWithPopup.tsx
@@ -48,11 +48,12 @@ export const ToolTypePopup = ({
 
     const updatePosition = () => {
       const triggerRect = triggerElement.getBoundingClientRect();
+
       const panelRect = panelRef.current?.getBoundingClientRect();
       const panelWidth = panelRect?.width ?? 0;
       const panelHeight = panelRect?.height ?? 0;
       setPanelPosition({
-        x: triggerRect.x - panelWidth / 2,
+        x: triggerRect.left - panelWidth / 2,
         y: panelHeight + 8,
       });
     };
@@ -92,9 +93,9 @@ export const ToolTypePopup = ({
       tabIndex={-1}
       style={{
         position: "fixed",
-        bottom: `${panelPosition.y}px`,
+        top: `${-10}px`,
         left: `${panelPosition.x}px`,
-        zIndex: 2,
+        zIndex: 9999,
       }}
       className={CLASSES.CONVERT_ELEMENT_TYPE_POPUP}
     >
@@ -161,7 +162,13 @@ export const ToolWithPopup = ({
     <div style={{ position: "relative" }}>
       <div ref={setTriggerRef}>
         <ToolButton
-          className={clsx(className, { fillable })}
+          className={clsx(className, {
+            fillable,
+            active:
+              isActive ||
+              isPopupOpen ||
+              options.some((o) => o.type === activeTool.type),
+          })}
           type="radio"
           icon={displayedOption.icon}
           checked={isActive}
diff --git a/packages/excalidraw/components/dropdownMenu/DropdownMenu.scss b/packages/excalidraw/components/dropdownMenu/DropdownMenu.scss
index eb6b5dff86..a0a230941d 100644
--- a/packages/excalidraw/components/dropdownMenu/DropdownMenu.scss
+++ b/packages/excalidraw/components/dropdownMenu/DropdownMenu.scss
@@ -3,7 +3,7 @@
 .excalidraw {
   .dropdown-menu {
     position: absolute;
-    top: 100%;
+    top: 2.5rem;
     margin-top: 0.5rem;
 
     &--placement-top {
@@ -14,32 +14,35 @@
     }
 
     &--mobile {
-      left: 0;
       width: 100%;
       row-gap: 0.75rem;
 
       // When main menu is in the top toolbar, position relative to trigger
       &.main-menu-dropdown {
-        position: fixed;
-        left: 1rem;
-        top: 3.5rem;
-        min-width: 280px;
-        max-width: calc(100vw - 2rem);
+        min-width: 232px;
+        max-width: calc(100vw - var(--editor-container-padding) * 2);
         margin-top: 0;
         margin-bottom: 0;
         z-index: var(--zIndex-layerUI);
+
+        @media screen and (orientation: landscape) {
+          max-width: 232px;
+        }
       }
 
       .dropdown-menu-container {
         padding: 8px 8px;
         box-sizing: border-box;
-        // background-color: var(--island-bg-color);
+        max-height: calc(
+          100svh - var(--editor-container-padding) * 2 - 2.25rem
+        );
         box-shadow: var(--shadow-island);
         border-radius: var(--border-radius-lg);
         position: relative;
         transition: box-shadow 0.5s ease-in-out;
         display: flex;
         flex-direction: column;
+        overflow-y: auto;
 
         &.zen-mode {
           box-shadow: none;
@@ -49,7 +52,7 @@
 
     .dropdown-menu-container {
       background-color: var(--island-bg-color);
-      max-height: calc(100vh - 150px);
+
       overflow-y: auto;
       --gap: 2;
     }
diff --git a/packages/excalidraw/css/styles.scss b/packages/excalidraw/css/styles.scss
index b11daf0a66..9b41a7372f 100644
--- a/packages/excalidraw/css/styles.scss
+++ b/packages/excalidraw/css/styles.scss
@@ -246,7 +246,7 @@ body.excalidraw-cursor-resize * {
     left: 50%;
     transform: translateX(-50%);
     --bar-padding: calc(4 * var(--space-factor));
-    z-index: 4;
+    z-index: 3;
     display: flex;
     flex-direction: column;